Township of Langley Budget Presentation March 10

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Township of Langley budget backgrounder, Tuesday, March 10, 2009.

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Township of Langley Budget Presentation March 10

  1. 1. Special Meeting of Council for Budget Purposes Budget Presentation March 10, 2009
  2. 2. Overview <ul><li>Budget Meeting Objectives </li></ul><ul><li>Finance Committee Report Impacts </li></ul><ul><li>Budget Challenges </li></ul><ul><li>Financial Planning Strategies to Date </li></ul><ul><li>Total Budget Summary Sheet </li></ul><ul><li>Major Cost Drivers </li></ul><ul><li>Budget Shortfall – Selected Functions </li></ul><ul><li>Property Tax Per Capita Comparison </li></ul><ul><li>Contribution to Capital </li></ul><ul><li>Budget Summaries Detail </li></ul><ul><li>Staff Items for Discussion with Council </li></ul><ul><li>Next Steps </li></ul>
  3. 3. Budget Meeting Objective <ul><li>Brief review of financial impacts from the Finance Committee’s report </li></ul><ul><li>Continue Budget Discussions with Council focusing on the Capital Program priorities </li></ul><ul><ul><li>Review the 2009 projects within the $6,110 million funding level – Version 3 & 4 </li></ul></ul><ul><ul><li>Review the 2009 projects within the $9,346 million funding level – Version 1 </li></ul></ul><ul><ul><li>Review the 2009 projects which are below the $9,346 million funding level. </li></ul></ul><ul><li>Discuss Revenue Enhancement options </li></ul>
  4. 4. Finance Committee Report Impacts <ul><li>All Capital Carryforwards from 2008 to 2009, which have not been started, have been eliminated </li></ul><ul><li>Capital program has been significantly reduced </li></ul><ul><li>$1.9 million ongoing revenue is available for 2010 for Capital or other uses </li></ul><ul><li>User Pay Utilities funding sources are not retained within the User Pay Utility </li></ul><ul><ul><ul><li>Water funds used to fund Solid Waste shortfall </li></ul></ul></ul><ul><li>A tax increase of .93% on Universal Utilities/Functions amounts to $679,000 </li></ul>
  5. 5. Finance Committee Report Impacts
  6. 6. Budget Challenges <ul><li>Budget challenges common with all municipalities in these uncertain economic times </li></ul><ul><li>Full-time fire service implementation will continue to be a major cost driver in 2009, 2010 and 2013 </li></ul><ul><li>Growth at 2% or 2.5% only funds inflationary increases in operating costs, it does not cover the cost of increased service demand and/or large contract increases </li></ul>
  7. 7. Financial Planning Strategies to Date <ul><li>No service enhancements or maintenance requests in the draft budget except for full-time fire service implementation in 2009 & 2010 </li></ul><ul><li>Reduction of 9 staff from vacancies </li></ul><ul><li>Significant reduction in capital program </li></ul><ul><li>No inflationary increases except for the non-discretionary expenses only – mainly salaries, wages and contracts </li></ul><ul><li>Utilization of surplus for reducing the immediate impact of Solid Waste levy increases as a short term strategy </li></ul>
  8. 8. Total Draft Operating Budget Summary
  9. 9. Major Cost Drivers - 2009 to 2011
  10. 10. Budget Shortfall for Select Utilities Transportation shortfall assumes a zero Contribution to Capital for 2010 & 2011
  11. 11. Property Tax Per Capita and Other Comparison <ul><li>Taxes per Capita for the Township is comparable to other Municipalities </li></ul><ul><li>Five of our comparators receive Gaming revenue which helps fund their Contribution to Capital thereby reducing capital funding from General Revenue </li></ul>
  12. 12. Contribution to Capital Comments <ul><li>The Capital program consists of </li></ul><ul><ul><li>Capital Replacement </li></ul></ul><ul><ul><ul><li>Undertaken when assets are at or very close to end of their ability to function safely and economically </li></ul></ul></ul><ul><ul><ul><li>Mainly funded from reserves, surpluses or debt </li></ul></ul></ul><ul><ul><li>Capital Upgrading </li></ul></ul><ul><ul><ul><li>Work undertaken where increase in function performance is required, e.g. increase capacity/safety </li></ul></ul></ul><ul><ul><ul><li>Funded from annual contribution to capital </li></ul></ul></ul><ul><ul><li>Capital Maintenance & Renewal </li></ul></ul><ul><ul><ul><li>Work done to ensure assets perform their function safely & economically </li></ul></ul></ul><ul><ul><ul><li>Funded from annual contribution to capital </li></ul></ul></ul><ul><ul><li>Capital Repair - Work done to repair assets to working condition; Funded from annual operating funds </li></ul></ul>
  13. 13. Contribution to Capital (from Current Taxes & Levies) Detail schedules are in the March 10, 2009 Budget Binder
  14. 14. Total Contribution to Capital (from Current Taxes & Levies )
  15. 15. Contribution to Capital for Select Utilities (from Current Taxes & Levies ) Transportation, Water & Sewer capital assets provide 247 service, therefore need to be maintained at a safe and economical state
  16. 16. Contribution to Capital Projects – Transportation for 2009 (Projects not funded within the $6.110 million level)
  17. 17. Contribution to Capital Projects – Transportation for 2009 (Projects not funded within the $9.346 Funding Level)
  18. 18. Budget Summaries Detail <ul><li>Review of Budget Detail </li></ul><ul><ul><li>Water Utility Fund </li></ul></ul><ul><ul><li>Sewer Utility Fund </li></ul></ul><ul><ul><li>Solid Waste Utility Fund </li></ul></ul><ul><ul><li>Parks Utility Fund </li></ul></ul><ul><ul><li>Transportation Utility Fund </li></ul></ul><ul><ul><li>Stormwater Utility Fund </li></ul></ul><ul><ul><li>Fire Function </li></ul></ul><ul><ul><li>Police Function </li></ul></ul><ul><ul><li>Recreation & Culture Function </li></ul></ul><ul><ul><li>General Government Function </li></ul></ul>
  19. 19. Staff Items for Discussion for the 2009 to 2013 Financial Plan
  20. 20. Next Steps <ul><li>Council direction on priorities for service delivery and capital program and any revenue enhancements for each fund </li></ul><ul><li>Staff work with Council to prepare a Draft Financial Plan </li></ul><ul><li>Present Draft Financial Plan for public consultation </li></ul><ul><li>Bring forward results of the public consultation </li></ul><ul><li>Bring forward the Five Year Financial Plan for Council approval and adoption by May 14 </li></ul>

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