Financial Planning & Budgets

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Financial

Plannin

g

&

Budgets

2006

Halton Region Budget & Business Plan

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Financial Planning and Budgets

PROPOSED 2006 BUDGET & BUSINESS PLAN

HALTON REGION

Key Divisional Objectives

Provide advice to Management and Council on budgetary, fiscal, growth management,

rate setting and other financial matters.

Prepare financial plans to ensure that growth does not have a financial burden on

Halton’s existing communities.

Strategic Plan & Other Program Deliverables

Enhance the relationship between the strategic plan, budget and performance measures

to better understand the implications on program costs, service levels and service quality.

Develop acceptable financing arrangements for planned development initiatives in order

to minimize the impact on existing residents

Major Initiatives/Issues

Through Council approved Budget Directions, undertake the budget process culminating

in the approval of rate and tax budgets and the adoption of a long-term business plan in 2006.

Continue to seek Government Finance Officers Association award for Distinguished

Budget Presentation.

Implementation of operating and capital financing policies to maintain and improve

operational efficiency and financial control in the delivery of Regional services/programs.

Prepare financial plans to initiate development in the next phase of HUSP to ensure

development does not have a financial burden on Halton’s existing residents.

Initiate an update to the Regional development charge by-laws in accordance with

revised Development Charge legislation which is anticipated to be enacted in 2006.

Divisional Functions

The Financial Planning and Budgets Division has three sections: Tax Supported Budget, Rate Supported Budget, and Capital Budget and Development Financing.

Budget Co-ordination

The Tax and Rate-supported Budget sections, along with the Capital Budget and

Development Financing section, are responsible for developing budget strategies that reflect the balance between servicing needs and financial affordability. The budget plan

incorporates multi-year forecasting and presents a blend of current, debt and reserve financing to achieve long-term stability in the financial plan. These sections coordinate budget submissions, and provide advice and guidance to service delivery departments in the implementation of approved budget plans.

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Financial Planning and Budgets

HALTON REGION

Financial Planning

Fiscal planning increasingly requires that new events be identified early, and their

consequences measured and extrapolated into future budget forecasts. These events are then assessed to determine how they affect service delivery, what the financial

consequences are, and how they can be financed to maintain the maximum degree of fiscal flexibility for the Corporation. The key objective within the financial planning function is to identify future initiatives and prepare appropriate response strategies.

Financial Analysis

Work is undertaken on diverse, on-going and specific issues that lead to the consolidated

long-term financial plan. These issues often involve departmental input and/or participation on inter-departmental or inter-municipal teams. However, the responsibility for the

assessment of financial implications remains within the section.

Growth Management

Capital Budget and Growth Management section develops financial plans for sustainable growth management in order to provide the infrastructure required to service new

development in Halton. Consistent with Halton's Official and Strategic Plans, the section:

Identifies and monitors the cost of new growth in Halton to assess the adequacy of

financing schemes and limiting the impact of growth so that new developments do not place a financial burden on existing tax/ratepayers

Monitors changes to Ontario's development charges regime and provides related

ongoing policy advice

Liases with Halton's development community in general and resolves development

charge-related disputes with individual developers

Participates in the evaluation of major developments in Halton.

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TAX BUDGET DETAILS

2006 BUDGET REPORT BUDGET & BUSINESS PLAN

DIVISIONAL OVERVIEW - FINANCIAL PLANNING & BUDGETS

2006 2003 ACTUAL 2004 ACTUAL APPROVED BUDGET PROJECTED

ACTUAL BASE BUDGET

PROGRAM CHANGE REQUESTED BUDGET $ $ $ $ $ $ $ $ % $ % OPERATING EXPENDITURES Personnel Services 1,015,293 1,319,496 1,863,700 1,793,700 1,938,200 132,400 2,070,600 74,500 4.0% 206,900 11.1%

Materials & Supplies 13,444 15,106 8,050 8,050 11,050 0 11,050 3,000 37.3% 3,000 37.3%

Purchased Services 188,750 131,015 46,850 41,850 95,800 0 95,800 48,950 104.5% 48,950 104.5%

Minor Capital 3,139 3,262 600 600 600 0 600 0 0.0% 0 0.0%

Grants & Assistance 0 0 0 0 0 0 0 0 0.0% 0 0.0%

TOTAL OPERATING 1,220,626 1,468,879 1,919,200 1,844,200 2,045,650 132,400 2,178,050 126,450 6.6% 258,850 13.5%

Financial Expenses 26,777 185,675 100,000 100,000 100,000 0 100,000 0 0.0% 0 0.0%

Debt Charges 0 0 0 0 0 0 0 0 0.0% 0 0.0%

Transfer to Reserves 0 6,122 0 0 0 0 0 0 0.0% 0 0.0%

Transfer from Reserves 0 0 0 0 0 0 0 0 0.0% 0 0.0%

CAPITAL FINANCING & RESERVES 26,777 191,797 100,000 100,000 100,000 0 100,000 0 0.0% 0 0.0%

DIRECT PROGRAM COSTS 1,247,403 1,660,676 2,019,200 1,944,200 2,145,650 132,400 2,278,050 126,450 6.3% 258,850 12.8%

ALLOCATED COSTS / RECOVERIES

Direct Charges/Recoveries (251,431) (661,253) (831,500) (831,500) (860,010) 4,800 (855,210) (28,510) 3.4% (23,710) 2.9% Corporate Sustaining Charges/Recoveries (969,000) (797,945) (917,700) (917,700) (987,640) 0 (987,640) (69,940) 7.6% (69,940) 7.6% TOTAL EXPENDITURES 26,972 201,478 270,000 195,000 298,000 137,200 435,200 28,000 10.4% 165,200 61.2%

Subsidy Revenue (26,777) (45,769) (10,000) (10,000) (10,000) 0 (10,000) 0 0.0% 0 0.0%

All Other Revenues (351,392) (475,556) (260,000) (335,000) (288,000) (137,200) (425,200) (28,000) 10.8% (165,200) 63.5% TOTAL REVENUE (378,169) (521,325) (270,000) (345,000) (298,000) (137,200) (435,200) (28,000) 10.4% (165,200) 61.2%

NET PROGRAM IMPACT (351,197) (319,847) 0 (150,000) 0 0 0 0 0

STAFF COMPLEMENT (F.T.E.) BASE PROGRAM REQUESTED

BUDGET BUDGET BUDGET

Permanent 23.5 2.0 25.5 0.0 0.0% 2.0 8.5% Temporary 0.0 0.0 0.0 0.0 0.0 TOTAL 23.5 2.0 25.5 0.0 0.0% 2.0 8.5% 0.0 23.5 2005 APPROVED BUDGET 23.5 2006 2005 2006 _{CHANGE IN 2006 BASE} BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 REQUESTED BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 BASE BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 REQUESTED BUDGET TO 2005 APPROVED BUDGET

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TAX BUDGET DETAILS 2006

2006 BASE BUDGET CHANGE REPORT Financial Planning & Budgets BUDGET & BUSINESS PLAN 2006 APPROVED BUDGET PROJECTED ACTUAL BASE BUDGET PROGRAM CHANGE REQUESTED BUDGET COMMENTS $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 1,863,700 1,793,700 1,938,200 132,400 2,070,600 74,500 4.00

Materials & Supplies 8,050 8,050 11,050 0 11,050 3,000 37.27 Increased office supplies due to internal reorg

Purchased Services 46,850 41,850 95,800 0 95,800 48,950 104.48 Professional resources related to DC complaints and issues

Minor Capital 600 600 600 0 600 0 0.00

Grants & Assistance 0 0 0 0 0 0 0.00

TOTAL OPERATING 1,919,200 1,844,200 2,045,650 132,400 2,178,050 126,450 6.59

Financial Expenses 100,000 100,000 100,000 0 100,000 0 0.00

Debt Charges 0 0 0 0 0 0 0.00

Transfer to Reserve 0 0 0 0 0 0 0.00

Transfer from Reserve 0 0 0 0 0 0 0.00

CAPITAL FINANCING & RESERVES 100,000 100,000 100,000 0 100,000 0 0.00 DIRECT PROGRAM COSTS 2,019,200 1,944,200 2,145,650 132,400 2,278,050 126,450 6.26

ALLOCATED COSTS / RECOVERIES

Direct Charges/Recoveries (831,500) (831,500) (860,010) 4,800 (855,210) (28,510) 3.43 Corporate Sustaining Charges/Recoveries (917,700) (917,700) (987,640) 0 (987,640) (69,940) 7.62 TOTAL EXPENDITURES 270,000 195,000 298,000 137,200 435,200 28,000 10.37

Subsidy Revenue (10,000) (10,000) (10,000) 0 (10,000) 0 0.00

All Other Revenues (260,000) (335,000) (288,000) (137,200) (425,200) (28,000) 10.77 Increased revenue related to subdivision agreements TOTAL REVENUE (270,000) (345,000) (298,000) (137,200) (435,200) (28,000) 10.37

NET PROGRAM IMPACT 0 (150,000) 0 0 0 0 0.00

2005 CHANGE IN 2006 BASE

BUDGET TO 2005 APPROVED BUDGET

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PROGRAM CHANGE FORM BUDGET & BUSINESS PLAN

PROGRAM DETAILS: Program Title: Position Title: Department: Division: Cost Centre: 695100

Complement Impact: 2.0 Job Class: B3 &

Duration: Permanent If Temporary specify length:

FUNDING IMPACT: Annualized: Yes

Operating If No, # of Months:

Salary 107,800 Fringe Benefits 24,600 Other Program Costs - Technology Charges 4,800

Subtotal Operating Expenditures $ 137,200

External Financing

Subsidies: (enter as a negative) -

Other: (enter as a negative) (137,200) If Other, identify source below:

Net Impact $ -

Funding from Other Regional Sources Cost Element

Recovery from Capital: (enter as a negative) -

Recovery from Rate or Tax: (enter as a negative) -

Net Controllable Costs $ -

Development Financing

Intermediate Financial Analyst - Development & Development Assistant Corporate Services

Financial Planning & Budgets

A3

Development Administration Fees

Halton’s development-related capital programs have increased significantly with the start of the HUSP (Halton Urban Infrastructure Plan) Implementation Plan in 1998. Since 1998, Halton has facilitated residential growth of more than 20,000 single-detached units and employment growth in the HUSP and Non-HUSP areas through comprehensive financial plans and various financial agreements.

In support of such growth, the overall 10-year capital program grew by $600 million from $1.1 billion to $1.7 billion between 2001 and 2005, which was mainly driven by a $356 million increase in the Road program and $218 million in the Water and Wastewater program. The scale of development administration has also expanded significantly during this period, annually processing an average of 4,500 residential units, through subdivision agreements, as compared to 3,500 units prior to 2001. In addition, a number of development charges (DC) by-laws, along with complex financial plans have been implemented, following 2 major development charge background studies and extensive public consultation processes.

The rapid expansion and added complexity in development financing during these recent years, as described above, have resulted in the need for an increased level of financial and administrative support, in order to sustain the quality of the current operations which require:

• Additional analysis to deal with the financing of water and wastewater infrastructure between the HUSP and Non HUSP areas of Halton.

• Increased customer services in providing technical support to the development community, including consultations, regarding different policy applications for HUSP and Non HUSP areas.

• Sustained in-house expertise to deal with increasing complex development charge complaints, where staff must defend Regional development charge policies. • Implementing and monitoring complex financial plans and agreements.

• Preparation and implementation of growing capital budget.

• Provision of financial support to monitor and report on the implementation of capital programs, through an increasing number of staff reports, including capital variance and project closure reports, on-going staff reports and bid reports.

In addition, in the coming years, staff will be required to undertake an update to the existing DC by-laws, with the initiation of the Places to Grow Studies and updates to the Water, Wastewater and Road Master Plan Studies, and the anticipation of the Provincial revisions to the current Development Charges Act. The new legislation will require all Halton DC by-laws to be updated, in order to align with the new legislation through a comprehensive DC Background Study and public consultation process. The next DC process will require the same comprehensive consultation process used in 2004 which will involve the DC Advisory Committee and related sub-Committees and technical Committee which will require more administrative and technical support to deal with the minutes, questions and responses, circulation of material and the ability to post such information on Halton’s web in a timely manner. Further, more complex analysis will be required to address the existing development financial plans implemented since 2003 an deal with the adjustments to the Master plans as a result of the Places to Grow Studies. This will require more consultation with the development community than what occurred

Financial Planning & Budgets currently has a Senior Financial Analyst, Development Facilitator and Development Officer providing the analytical and administrative support. Given the complexity of administering Regional DC policies, and with the changing planning and legislative environment over the next year, an additional financial analyst and support assistant will be required. These added resources will help to sustain the current operations (that have grown significantly past four years) and to manage the growing demands for services (related to the Places to Grow studies) in the coming years by providing the following:

• Assistance in reviewing the preliminary impacts on Halton’s Business Plan relating to the Places to Grow Studies and Master plan updates. • Support in the review of the changes to the Development Charge legislation and the impact on the Halton Business Plan.

• Technical support for the upcoming comprehensive DC background study and the public consultation process required under the new DC legislation. • Technical support for the implementing and monitoring of financial plans related to specific developments.

• Technical support for the budgeting, the implementing and the reporting of development-related capital programs.

• Additional analytical support to review bid reports and council reports related to tendering of projects, and capital variance reports. • Administrative/clerical support for meetings, liaisons, the public consultation processes and for information management.

The required funding to support these positions will be fully recovered by the development charge (DC) admin fees, with no impact to the tax rate. As noted above, the number of residential units processed through subdivision agreements has increased significantly since 2000, which has resulted in increased DC admin fees revenue. This additional revenue will fund the additional compliments with no increase in DC admin fees. As noted in CS-58-05 (re: 2006 Budget Directions), Residential growth in Halton has been strong in recent years and is expected to continue this trend over the planning horizon.

An alternative to hiring these resources would require hiring on contract in order to sustain current operations for the consistently increasing demand for services, due to the complexity and expanded scope of the operations

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Financial Polic y & Internal Audit

2006

Halton Region Budget & Business Plan

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Financial Policy & Internal Audit

HALTON REGION

Key Divisional Objectives

Develop and present tax policies that contribute towards meeting the goals of Halton ‘s

Strategic Plan, while ensuring that the Province’s current value assessment system is implemented effectively and efficiently

Ensure that Halton’s financial interests are represented in inter-governmental initiatives

Invest Regional funds to secure superior rates of return consistent with Halton’s

investment policy

Participate in the development of Halton’s long-term financial plan

Provide support for periodic assessments of alternate service delivery models

Assess internal controls, risk management and governance processes through a

program of compliance and operational audits. Identify opportunities for improvement

Strategic Plan & Other Program Deliverables

Develop tax policies to ensure equity across property classes within Halton and maintain

and enhance Halton’s competitive position with neighbouring municipalities

Ensure that inter-governmental funding arrangements are developed and administered in

the best interest of Halton Region

Continue to ensure that the investment program is a major non-tax, non-rate revenue

source

Maintain the “AAA” credit rating

Develop methods to identify and report on organizational risks throughout the

organization and incorporate into the Internal Audit Program

Major Initiatives/Issues

Participate with GTA municipalities and the Province to develop a new pooling formula

for the funding of Social Housing, and a new cost-sharing formula for GO Transit

Continue to improve the functionality of the web-based tax analysis program developed

for both use in the preparation of the annual tax policy report and to provide assistance to the local municipalities in the preparation of interim and final tax bills

Provide analyses to identify the cost structure and financial implications of recommended

programs as part of the Comprehensive Housing Strategy

Provide guidance and support related to the implementation of the Comprehensive

Economic Development Strategy

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Financial Policy & Internal Audit

HALTON REGION

Divisional Functions

The Financial Policy & Internal Audit Division is responsible for three areas: Financial Policy and Taxation, Internal Audit, and Investment and Cash Management.

Taxation Policy

Regional municipalities are now responsible for developing and setting a broad array of taxation policies that, prior to 1998, were set by the Province. This section provides input on tax and assessment issues. A tax policy report completed by a working group that includes senior staff from the four Local Municipalities is presented to Council annually.

Financial Policy

This section supports Halton’s long-term financial plan, focusing on collaborating with senior Provincial and GTA/Toronto staff to prepare funding formulae and policy documents. The section is responsible for initiatives such as the funding of pooling for income support and social housing, and GO Transit.

Internal Audit

This section provides technical advice and support for Halton’s operating departments, and serves as the principal advisor to Regional Council on internal controls, risk management and governance issues. Internal Audit provides Regional Council, Management Committee and the CAO with independent, objective assurance and consulting services to evaluate and improve the effectiveness of programs and processes.

Complete audit assignments as described in the Internal Audit Annual Workplan

Follow-up on prior years’ audit recommendations, and provide additional support/advice

as needed

Provide assistance/direction to enhance the quality of strategic and operating decisions

made throughout the organization

Prepare analysis and recommendations that lead to increased efficiency, lower operating

costs and/or an enhanced control environment that maximize the value of the Region’s resources

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Financial Policy & Internal Audit

HALTON REGION

Investment and Cash Management

This section provides short and long-term investment services for Halton's money market and bond portfolios (estimated 2005 year end position in excess of $600 million) as well as for other local agencies (e.g.: Halton Community Housing Corporation).

Staff also provides periodic advice on general investment strategies to Halton's Local

Municipalities, and negotiates and places Halton debentures to meet the financing requirements of Halton's local government sector (Region and Local Municipalities).

Staff in this section liase annually with Halton's credit rating agencies and provide

background analysis to document the financial strengths of the Regional Corporation and Halton's local government partners. The credit review process is critical for Halton in maintaining its AAA credit rating.

The aim of the program is to continually improve Halton's investment and debenturing

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DIVISIONAL OVERVIEW - FINANCIAL POLICY & INTERNAL AUDIT

PROGRAM CHANGE REQUESTED BUDGET $ $ $ $ $ $ $ $ % $ % OPERATING EXPENDITURES Personnel Services 267,178 636,538 725,600 648,000 742,200 0 742,200 16,600 2.3% 16,600 2.3%

Materials & Supplies 3,820 2,120 3,825 3,825 3,825 0 3,825 0 0.0% 0 0.0%

Purchased Services 145,728 188,202 130,400 121,920 160,400 0 160,400 30,000 23.0% 30,000 23.0%

Minor Capital 0 2,731 0 0 0 0 0 0 0.0% 0 0.0%

TOTAL OPERATING 416,725 829,590 859,825 773,745 906,425 0 906,425 46,600 5.4% 46,600 5.4%

Financial Expenses 83,238 89,836 85,000 85,000 90,000 0 90,000 5,000 5.9% 5,000 5.9%

Debt Charges 0 0 0 0 0 0 0 0 0.0% 0 0.0%

CAPITAL FINANCING & RESERVES 83,238 93,525 85,000 85,000 90,000 0 90,000 5,000 5.9% 5,000 5.9%

DIRECT PROGRAM COSTS 499,963 923,116 944,825 858,745 996,425 0 996,425 51,600 5.5% 51,600 5.5%

Direct Charges/Recoveries (329,298) (269,875) (247,670) (247,670) (286,100) 0 (286,100) (38,430) 15.5% (38,430) 15.5% Corporate Sustaining Charges/Recoveries (285,500) (602,333) (697,155) (697,155) (710,325) 0 (710,325) (13,170) 1.9% (13,170) 1.9%

TOTAL EXPENDITURES (114,835) 50,908 0 (86,080) 0 0 0 0 0.0% 0 0.0%

Subsidy Revenue 0 0 0 0 0 0 0 0 0.0% 0 0.0%

All Other Revenues 0 0 0 0 0 0 0 0 0.0% 0 0.0%

TOTAL REVENUE 0 0 0 0 0 0 0 0 0.0% 0 0.0%

NET PROGRAM IMPACT (114,835) 50,908 0 (86,080) 0 0 0 0 0.0% 0 0.0%

Permanent 7.0 0.0 7.0 0.0 0.0% 0.0 0.0% Temporary 0.0 0.0 0.0 0.0 0.0 TOTAL 7.0 0.0 7.0 0.0 0.0% 0.0 0.0% 0.0 7.0 2005 APPROVED BUDGET 7.0 2006 2005 2006 _{CHANGE IN 2006 BASE} BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 REQUESTED BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 BASE BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 REQUESTED BUDGET TO 2005 APPROVED BUDGET A136

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2006 BASE BUDGET CHANGE REPORT Financial Policy & Internal Audit BUDGET & BUSINESS PLAN 2006 APPROVED BUDGET PROJECTED ACTUAL BASE BUDGET PROGRAM CHANGE REQUESTED BUDGET COMMENTS $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 725,600 648,000 742,200 0 742,200 16,600 2.29

Materials & Supplies 3,825 3,825 3,825 0 3,825 0 0.00

Purchased Services 130,400 121,920 160,400 0 160,400 30,000 23.01 Credit Rating Fees

Minor Capital 0 0 0 0 0 0 0.00

TOTAL OPERATING 859,825 773,745 906,425 0 906,425 46,600 5.42

Financial Expenses 85,000 85,000 90,000 0 90,000 5,000 5.88 Increase in bank charges to reflect actual expenditures.

Debt Charges 0 0 0 0 0 0 0.00

CAPITAL FINANCING & RESERVES 85,000 85,000 90,000 0 90,000 5,000 5.88

DIRECT PROGRAM COSTS 944,825 858,745 996,425 0 996,425 51,600 5.46

Direct Charges/Recoveries (247,670) (247,670) (286,100) 0 (286,100) (38,430) 15.52 Corporate Sustaining Charges/Recoveries (697,155) (697,155) (710,325) 0 (710,325) (13,170) 1.89

TOTAL EXPENDITURES 0 (86,080) 0 0 0 0 0.00

Subsidy Revenue 0 0 0 0 0 0 0.00

All Other Revenues 0 0 0 0 0 0 0.00

TOTAL REVENUE 0 0 0 0 0 0 0.00

2005 CHANGE IN 2006 BASE

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Financia l & Pur chasing Ser vices

2006

Halton Region Budget & Business Plan

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Financial and Purchasing Services

HALTON REGION

Key Divisional Objectives

To provide the Region’s operating and support departments and the Halton Community Housing Corporation the business infrastructure for:

The accurate and timely report of business transactions

The competitive procurement and timely payment of purchased goods & services

The timely billing and revenue collection for Regional services sold

Strategic Plan & Other Program Deliverables

Ability to comply with expected Public Sector Accounting Board (PSAB)

recommendations for the reporting of fixed assets

Produce and maintain standards that support the production of performance measures to

enhance Council’s and the public’s understanding of Halton’s service efforts and accomplishments

25% of procurement and 50% of vendor payments processed on an E-basis

Activity-based financial reports will be regularly available for senior managers

Major Initiatives/Issues

Maintain corporate responsibility for public reporting and revenue management

Provide information, documentation and training for staff about Halton’s financial tools

and processes

Establish a new contract for water meter reading, billing and collection services

Lead Halton’s participation in benchmarking and accounting policy research to enhance

the level and quality of reportable information about Halton’s operating results and its non-financial assets

Develop the policy framework, processes and data required to support a capital asset

reporting framework that complies with expected PSAB recommendations

Divisional Functions

The Division is divided into two sections, Accounting & Financial Reporting (which includes Revenues & Collection Services) and Purchasing Services. In addition to these services, the Director participates in a number of corporate programs, with support from a Senior Accounting Policy Specialist. For example, the Director is Halton’s lead for intermunicipal performance measurement and reporting projects (e.g. OMBI, MPMP, Ontario Centre for Municipal Best Practices), participates on a CICA Task Force developing guidance for public performance reporting, and participates on other corporate committees (e.g. Capital Asset Reporting Project, Customer Service Strategy).

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Financial and Purchasing Services

HALTON REGION

Accounting & Financial Reporting

Maintains the Region’s and Halton Community Housing Corporation’s financial records

Prepares the annual financial statements, provincial Financial Information Return and

special purpose financial statements

Provide management on time, real time, year to date cost and revenues totals and

details of the operating and capital programs.

Processes over 70,000 vendor payments, employee expense claims and debenture

principle & interest, with vendor invoices paid (on average) in 27 days

Responsible for managing water billing contracts with the four area Hydro Electric

Companies, and responding to water account customer inquiries

Records, monitors and follows up all outstanding regional billings, collecting over 99.9%

of outstanding receivables

Reconciles and reports staff time, attendance and activity information from COMPASS

for distribution to managers throughout the organization

Purchasing Services

Identifies opportunities for consolidating orders

Works with user departments to develop bid documents for more than 170 procurement

processes that will attract competitive bids from reputable suppliers

Works with other public agencies in Halton through the Halton Co-operative Purchasing

Group to obtain economies of scale on purchases

Regularly monitors market conditions and benchmarks our costs with other municipalities

Monitors the market place and maintains a current procurement strategy for hydro,

gasoline, fuel, bio-diesel fuel and natural gas

Provides staff training and commodity price outlooks to support effective corporate

procurement management

Researches opportunities for increasing the amount of web-based procurement activity

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DIVISIONAL OVERVIEW - FINANCIAL AND PURCHASING SERVICES

Purchased Services 154,637 234,596 148,350 178,750 148,350 0 148,350 0 0.0% 0 0.0%

Minor Capital 5,182 9,481 1,500 1,500 1,500 0 1,500 0 0.0% 0 0.0%

TOTAL OPERATING 1,419,010 1,971,035 2,150,750 2,105,400 2,228,950 141,900 2,370,850 78,200 3.6% 220,100 10.2%

Financial Expenses 70 40 0 0 0 0 0 0 0.0% 0 0.0%

Debt Charges 0 0 0 0 0 0 0 0 0.0% 0 0.0%

CAPITAL FINANCING & RESERVES 70 46,425 0 0 0 0 0 0 0.0% 0 0.0%

Direct Charges/Recoveries (704,208) (750,466) (834,403) (834,403) (935,725) (122,700) (1,058,425) (101,322) 12.1% (224,022) 26.8% Corporate Sustaining Charges/Recoveries (797,932) (1,220,615) (1,243,847) (1,243,847) (1,217,725) (19,200) (1,236,925) 26,122 -2.1% 6,922 -0.6% TOTAL EXPENDITURES (83,060) 46,378 72,500 27,150 75,500 0 75,500 3,000 4.1% 3,000 4.1%

Subsidy Revenue 0 0 0 0 0 0 0 0 0.0% 0 0.0%

All Other Revenues (111,602) (128,281) (72,500) (86,600) (75,500) 0 (75,500) (3,000) 4.1% (3,000) 4.1% TOTAL REVENUE (111,602) (128,281) (72,500) (86,600) (75,500) 0 (75,500) (3,000) 4.1% (3,000) 4.1%

NET PROGRAM IMPACT (194,662) (81,903) 0 (59,450) 0 0 0 0 0.0% 0 0.0%

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2006 BASE BUDGET CHANGE REPORT Financial & Purchasing Services BUDGET & BUSINESS PLAN 2006 APPROVED BUDGET PROJECTED ACTUAL BASE BUDGET PROGRAM CHANGE REQUESTED BUDGET COMMENTS $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 1,989,800 1,916,550 2,068,000 141,900 2,209,900 78,200 3.93

Purchased Services 148,350 178,750 148,350 0 148,350 0 0.00

Minor Capital 1,500 1,500 1,500 0 1,500 0 0.00

TOTAL OPERATING 2,150,750 2,105,400 2,228,950 141,900 2,370,850 78,200 3.64

Financial Expenses 0 0 0 0 0 0 0.00

Debt Charges 0 0 0 0 0 0 0.00

CAPITAL FINANCING & RESERVES 0 0 0 0 0 0 0.00

DIRECT PROGRAM COSTS 2,150,750 2,105,400 2,228,950 141,900 2,370,850 78,200 3.64

Direct Charges/Recoveries (834,403) (834,403) (935,725) (122,700) (1,058,425) (101,322) 12.14 Increased corporate recoveries Corporate Sustaining Charges/Recoveries (1,243,847) (1,243,847) (1,217,725) (19,200) (1,236,925) 26,122 -2.10

TOTAL EXPENDITURES 72,500 27,150 75,500 0 75,500 3,000 4.14

Subsidy Revenue 0 0 0 0 0 0 0.00

All Other Revenues (72,500) (86,600) (75,500) 0 (75,500) (3,000) 4.14 Anticipate increased number of Bid document sales & increased interest/late penalty charges

TOTAL REVENUE (72,500) (86,600) (75,500) 0 (75,500) (3,000) 4.14

2005 CHANGE IN 2006 BASE

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PROGRAM DETAILS:

Position Title: Capital Asset Accountant

Department: Division:

Complement Impact: 1.0 Job Class:

Duration: If Temporary specify length:

FUNDING IMPACT: Annualized:

Salary 61,100

Fringe Benefits 12,600

Other Program Costs -

Technology Charges 3,100

Subtotal Operating Expenditures $ 76,800 External Financing

Other: (enter as a negative) - If Other, identify source below:

Net Impact $ 76,800

Recovery from Rate or Tax: (enter as a negative) (57,600)

Net Controllable Costs $ 19,200

SERVICE IMPACT: 2005 CURRENT:

Enterprise-wide standards for capital asset classification, valuation and reporting

Not available Under

development

BUSINESS CASE:

Corporate Services

Financial and Purchasing Services

B3

2006 PROPOSED:

Halton has thousands of pieces of equipment it uses to deliver its products and services - from buildings and furniture to sophisticated water/wastewater plant equipment. These "capital assets" are currently managed using a variety of non-standard processes that vary across the organization. The Public Sector Accounting Board (PSAB) is developing financial reporting standards that will require complete, consistent information about all of Halton's capital assets to be identified and reported in the Region's audited financial statements by 2009. Within this very tight timeline, an appropriate policy framework needs to be created, and data needs to be collected (or created) about the stock, condition and remaining useful life of all of our capital assets. The Capital Asset Accountant will be responsible for assisting with the creation of the management, control and reporting frameworks required to meet PSAB guidelines. This position will manage data collection and reporting procedures, and coordinate the completion of these procedures with departmental staff throughout the organization.

It will create and maintain an accounting policy manual that will be the primary reference source for the organization to use for managing the level and extent of documentation required to maintain Halton's capital asset reporting system. It will coordinate inventory procedures to verify the existence, location and condition assessment for all property, plant and equipment. It will assist in the creation of manager reports to support a variety of decisions, including but not limited to those related to asset maintenance, replacement, condition and control. Over the next three years while Halton is preparing to comply with PSAB's guidance, this position will participate as a member of the staff team responsible for establishing policies, processes and reports that will be subject to external audit. Without this position, the organization's capacity to complete the required work in time for meeting PSAB's implementation deadline would be compromised. The success of this work will have a direct impact on the Region's ability to continue to receive an unqualified audit opinion after the PSAB guidance takes effect.

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PROGRAM DETAILS:

Position Title: Analyst - Water/WW Billing

Department: Division:

FUNDING IMPACT: Annualized:

Salary 56,000

Net Impact $ 70,600

Net Controllable Costs $ -

SERVICE IMPACT: 2005 CURRENT:

Unbilled water revenue

identified and recovered N/A $ 150,000

BUSINESS CASE:

Corporate Services

Financial & Purchasing Services

B2

2006 PROPOSED:

The scale of the Region's water meter reading and billing services has grown significantly over the last three years. Upgraded water meter equipment has helped identify examples of historical billing errors, and prompted the issuance of catch-up bills that recover a portion of revenue for water previously delivered but unbilled. These examples, combined with the results of a recently-completed RFP for water meter reading and billing services, prompted staff to identify opportunities to improve contract administration and system monitoring processes to reduce the potential for billing errors to occur, and improve customer service by ensuring timely, accurate and complete water bills are issued. This position will help Halton Region and its meter reading and billing contractors enhance their ability to proactively manage water/wastewater billing and cash collection services. More specifically, based on data provided by the hydros, this position will perform analytical reviews of water revenues, meter maintenance work orders, new meter installs and communicate the findings with both staff and customers. It will help the hydros identify billing problems or errors, identify revenue recovery opportunities and increase customer confidence in the service by reducing instances of missing or inaccurate billing data. Subject to the level of collaboration available from the hydros, this will increase revenue by at least $150,000 annually. Collaboration will occur with the HEC's to ensure billing details consistently present sufficient information to help customers understand the amounts billed. As well, following prescribed schedules, the position will review several reports that will be provided by the hydros in the new contract, and improve both the Region's and the Hydros' service quality. These reports will require concerted staff time and effort to review, as they will offer details that allow Halton to identify whether water revenues are complete and accurate, or whether equipment problems may exist that require further inspection, for a system that includes over 125,000 water meters.

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Asset

Management

Ser

vices

2006

Halton Region Budget & Business Plan

(21)

Asset Management Services

HALTON REGION

Key Divisional Objectives

To provide strategic planning for accommodation of Regional services

To acquire, manage and dispose of all real estate interests, and provide commercial

leasing services required by the Corporation, Halton Regional Police Service, and client municipalities and agencies

To operate, maintain, and repair Regional facilities and related equipment and systems,

to conform to standards defined by Municipal and Provincial codes and regulations and accepted industry standards

To ensure that all designs for Regional facilities are cost effective and consistent with Regional standards and good engineering practice and to exercise effective cost control during construction of Regional facilities projects

To provide acquisition, disposal, and full life-cycle asset management of stationary, and

rolling equipment for all Regional Departments, Halton Region Police Service, EMS, and client municipalities and agencies

Strategic Plan & Other Program Deliverables

Development of a strategic asset management program for Regional facilities

Maximize use of Regional facilities through the identification of opportunities to partner with other governments, and private and public sector organizations to share facilities, co-locate facilities or transfer facilities to meet mutual objectives

Implementation of Energy Management Program

Major Initiatives/Issues

Design of Halton Regional Centre expansion project completed

Provide annual updates of the Accommodation Strategy to Senior Management

Develop a strategy to maximize facility asset life through a comprehensive life-cycle

asset management program

Secure Land Ambulance sites and/or facilities as required by Halton Land Ambulance

Services Program

Acquisition of property required for transportation initiatives

Develop vehicle specifications for 2006 replacement program, including additions to the

fleet resulting from budgeted program changes

Completion of Phase 2 of Building Condition Assessments

Contract renewals: HRC Food Services, region-wide landscaping, post-warranty

contracts for new EMS locations

Implementation of Energy Management Program

Upgrade to Building Automation System for the Halton Regional Centre

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Asset Management Services

HALTON REGION

Divisional Functions

The Asset Management Division has five inter-related sections, Realty Services, Facilities Projects, Facility Management, Equipment Services, and Regional Stores.

Realty Services

The Realty Services Section is responsible for the acquisition of all real estate interests required to meet the Corporation's needs (land purchases, leases, easements, licenses) and the disposition of lands and/or interests that are surplus to Regional requirements.

Realty Services is responsible for property administration issues pertaining to existing

land and facilities (encroachments, realty tax assessment, property boundaries, private party usage, etc.). Major corporate clients are Planning and Public Works, Social and Community Services, and Health. This section also provides these services to the Halton Regional Police Service, The Town of Halton Hills, and The Town of Milton.

Facility Projects

The Facilities Projects Section is responsible for the provision of engineering planning,

design, construction, and contract administration on facility-related capital projects for all Regional Departments and Halton Regional Police Service.

Strategic Planning for accommodation and space management in support of Regional

programs and services.

Facility Management Services

The Facility Management Services Section provides pro-active facilities management

and maintenance for the Halton Regional Centre, Public Works North and South District Operations Centres, and Halton Waste Management sites.

Operations: Daily operations related to facility opening, closing, cleaning of office space, winter and summer grounds maintenance activities, HVAC (Heating/Ventilating/Air

Conditioning) systems operations, security and receiving functions.)

Maintenance: Preventative maintenance and repair program for building related systems

and components (mechanical/electrical/life safety, fire systems, etc.). This mandate also includes service contract administration, capital renewal, and the planning and

replacement of equipment and systems, due to failure, obsolescence, or end of useful life.

Related Services: Includes meeting room scheduling and rentals, event set-up, tear

down and audiovisual equipment services, internal move co-ordination, and contract administration for food services.

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Asset Management Services

HALTON REGION

Equipment Services

The Equipment Services Section is responsible for the preparation, maintenance, and repair of Halton’s vehicles and equipment. This includes: Planning & Public Works vehicles and equipment, Halton Region Police Service vehicles, Halton Ambulance, Allendale vehicles, and standby engines located at water and wastewater facilities. Equipment Services provides acquisition and disposal services for Planning & Public Works, and Allendale vehicles. It also provides disposal services for EMS vehicles.

Regional Stores

Material and supplies are purchased and stored to support Planning & Public Works water and wastewater infrastructure to support construction and maintenance activities, as well as Equipment Services Section, Waste Management Services, and EMS.

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DIVISIONAL OVERVIEW - ASSET MANAGEMENT SERVICES

PROGRAM CHANGE REQUESTED BUDGET $ $ $ $ $ $ $ $ % $ % OPERATING EXPENDITURES Personnel Services 1,682,589 2,361,258 2,685,400 2,638,358 2,831,500 92,900 2,924,400 146,100 5.4% 239,000 8.9% Materials & Supplies 778,882 768,102 829,678 810,878 884,800 0 884,800 55,122 6.6% 55,122 6.6% Purchased Services 1,916,901 2,417,767 3,099,400 3,097,200 3,116,100 0 3,116,100 16,700 0.5% 16,700 0.5% Minor Capital 752,422 773,976 1,622,300 1,181,800 1,260,500 0 1,260,500 (361,800) -22.3% (361,800) -22.3%

TOTAL OPERATING 5,130,794 6,321,103 8,236,778 7,728,236 8,092,900 92,900 8,185,800 (143,878) -1.7% (50,978) -0.6%

Debt Charges 0 0 0 0 0 0 0 0 0.0% 0 0.0%

Transfer to Reserves 1,474,115 1,380,237 895,000 895,000 1,440,000 0 1,440,000 545,000 60.9% 545,000 60.9% Transfer from Reserves (110,741) (98,747) (717,585) (242,500) (551,303) 0 (551,303) 166,282 -23.2% 166,282 -23.2% CAPITAL FINANCING & RESERVES 1,363,374 1,281,490 177,415 652,500 888,697 0 888,697 711,282 400.9% 711,282 400.9%

Direct Charges/Recoveries (3,872,327) (4,598,656) (4,908,049) (4,810,892) (5,673,414) (69,075) (5,742,489) (765,365) 15.6% (834,440) 17.0% Corporate Sustaining Charges/Recoveries (2,236,307) (2,703,561) (3,182,228) (3,182,228) (3,124,283) (23,825) (3,148,108) 57,945 -1.8% 34,120 -1.1% TOTAL EXPENDITURES 385,534 300,377 323,916 387,616 183,900 0 183,900 (140,016) -43.2% (140,016) -43.2%

Subsidy Revenue 0 (31,658) (2,500) (2,500) (2,600) 0 (2,600) (100) 4.0% (100) 4.0%

All Other Revenues (385,132) (268,848) (321,416) (466,216) (181,300) 0 (181,300) 140,116 -43.6% 140,116 -43.6% TOTAL REVENUE (385,132) (300,505) (323,916) (468,716) (183,900) 0 (183,900) 140,016 -43.2% 140,016 -43.2%

NET PROGRAM IMPACT 402 (128) 0 (81,100) (0) 0 (0) (0) -160.0% (0) -160.0%

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2006 BASE BUDGET CHANGE REPORT Asset Management Services BUDGET & BUSINESS PLAN 2006 APPROVED BUDGET PROJECTED ACTUAL BASE BUDGET PROGRAM CHANGE REQUESTED BUDGET COMMENTS $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 2,685,400 2,638,358 2,831,500 92,900 2,924,400 146,100 5.44

Materials & Supplies 829,678 810,878 884,800 0 884,800 55,122 6.64 Increase in fuel costs for Regional fleet

Purchased Services 3,099,400 3,097,200 3,116,100 0 3,116,100 16,700 0.54

Minor Capital 1,622,300 1,181,800 1,260,500 0 1,260,500 (361,800) -22.30 Decrease relating to normal cycle of vehicle replacements

TOTAL OPERATING 8,236,778 7,728,236 8,092,900 92,900 8,185,800 (143,878) -1.75

Debt Charges 0 0 0 0 0 0 0.00

Transfer to Reserve 895,000 895,000 1,440,000 0 1,440,000 545,000 60.89 Increased funding for capital program Transfer from Reserve (717,585) (242,500) (551,303) 0 (551,303) 166,282 -23.17 Reflective of vehicle replacement program CAPITAL FINANCING & RESERVES 177,415 652,500 888,697 0 888,697 711,282 400.91

DIRECT PROGRAM COSTS 8,414,193 8,380,736 8,981,597 92,900 9,074,497 567,404 6.74

Direct Charges/Recoveries (4,908,049) (4,810,892) (5,673,414) (69,075) (5,742,489) (765,365) 15.59 Increased corporate and fleet recoveries Corporate Sustaining Charges/Recoveries (3,182,228) (3,182,228) (3,124,283) (23,825) (3,148,108) 57,945 -1.82

TOTAL EXPENDITURES 323,916 387,616 183,900 0 183,900 (140,016) -43.23

Subsidy Revenue (2,500) (2,500) (2,600) 0 (2,600) (100) 4.00

All Other Revenues (321,416) (466,216) (181,300) 0 (181,300) 140,116 -43.59 Decrease due to discontinuation of Regional roads equipment maintenance

TOTAL REVENUE (323,916) (468,716) (183,900) 0 (183,900) 140,016 -43.23

2005 CHANGE IN 2006 BASE

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PROGRAM DETAILS: Position Title: Department: Division:

FUNDING IMPACT: Annualized: Yes

Salary 78,100

Net Impact $ 95,300

Net Controllable Costs $ 23,825

BUSINESS CASE:

A key responsibility of the position will be to develop relationships with industry and government organizations to deliver direct programs and establish conservation initiatives within Halton. Financial assistance will be sought through government agencies or utilities for sustainable design, conservation, and performance-enhancing projects. The Energy Management Specialist will support the Health Department by providing data that will assist in the Partners in Climate Protection program.

Corporate Services

Asset Management Services

C2 Energy Management Specialist

This position is required to provide Corporate leadership and direction in developing and implementing conservation demand management programs and to champion the cause of energy conservation in Halton Region. The Region paid approximately $9.0M and $770K for electricity and natural gas respectively in 2004. These costs have increased 67% from $5.4M, and 148% from $310K in the last 5 years. Utility costs are expected to continue their upward trend. The Energy Management Specialist will monitor and analyze energy consumption profiles for all Regional Departments and lead in the development of strategies to optimize costs and reduce utilization through various initiatives and capital projects; establish a comprehensive energy strategy for Halton; and document efficiency gains and conservation success aligned with that strategy.

The position will also provide expert advice into sustainable energy and environmentally efficient design initiatives related to new buildings and capital improvement projects for existing infrastructure.

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Technology

Ser

vices

2006

Halton Region Budget & Business Plan

(28)

Technology Services

HALTON REGION

Key Divisional Objectives

To provide a robust technology infrastructure that gives Regional staff access to

corporate resources whenever and wherever they are required. This includes connecting the Region to its business partners and customers/clients through secure access to Regional services.

To implement customer access technology to enhance government services accessibility

for Halton residents.

To develop services management information systems required for effective

management of Regional programs and to support performance management and benchmarking initiatives.

To manage effectively the growing investment in technology and minimize the total cost

of ownership of technology.

To investigate and implement new technologies or new applications for existing

technologies with productivity enhancement potentials.

Strategic Plan & Other Program Deliverables

Enterprise Resource Planning and Financial System (SAP) Upgrade

Computerized Maintenance Management System implementation

Enhanced Operational and Audit Reporting Systems

Application Integration Architecture Development

ITIL Service Management Implementation

Project/Work Portfolio Management System Implementation

SCADA network expansion

IT Strategic Plan

Major Initiatives/Issues

Disaster Prevention, Network Security and Business Continuity

Electronic Service Accessibility Issues

Information and Information Technology Security

Number of new large sites increase demand on data/voice and technology support

Inter-agency technology coordination complexity and cooperation

Increasing after-hours service expectations

Increases in contracting and consulting service requirements

Market pressures on staff recruiting and retention

Increasing demand for meaningful IT performance measures and benchmarks

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Technology Services

HALTON REGION

Divisional Functions

In 2006, Technology Services is organized into 4 major functional areas; Technology

Support Services, Client Application Development, Corporate Application Development and Planning and Integration.

Technology Support Services

This section is responsible for research, planning, delivering, maintaining and supporting

the corporate technology infrastructure including; desktop and mobile computers, application servers, e-mail, scheduling and e-fax applications, local and wide area networks, telephone systems, photocopiers, print shop equipment, cell phones, voice mail, and pagers

In 2006, this section’s main focus is the n11 telecommunications, DRP Process Planning

and Testing, Network Security, North Halton SCADA wireless systems expansion, ITIL Service Management Implementation.

Corporate Application Development

The Corporate Application Development Section is responsible for the research,

development, implementation and support of business applications.

In 2006, the primary focus will be the ERP System Upgrade, Work Order Management

Systems, and implementation of operational and audit systems reporting technology.

Client Application Development

The Client Application Development Section is responsible for the research,

development, implementation and support of operational systems for the Health, Social and Community Services and Planning and Public Works departments. This section also manages inter-jurisdictional IT initiatives including liaison, project management,

agreement development. For 2006, Inter-jurisdictional IT initiatives include: Ontario Parcel Alliance, Ontario Road Networks, Aerial Photography, Emergency Callout, 311, HRPS/EMS Mobile technology, BizPAL, various data and software sharing agreements.

Large projects planned for this section in 2006 include the completion of the

Computerized Maintenance Management System for Systems Operations, LTC, Housing and Asset Management. Mobile computing requirements of the EMS Strategy will be addressed in 2006.

This section is also responsible for managing all communications and liaison for project

requests from all departments through all phases from project proposal to departmental prioritization to project implementation and closure. For 2006 the anticipated project request portfolio is 150 items with 40 active projects.

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Technology Services

HALTON REGION

Planning and Integration

This section is responsible for providing expertise and guidance related to the

appropriate standards and processes for Technology Services to ensure appropriate integration; data management and quality standards are met.

These responsibilities include the implementation and stewardship of the Halton Way –

Project Management and Halton Way – Service Management methodologies and toolsets. Integration of IT into corporate planning and measurement initiatives including emergency planning, pandemic, learning and OMBI initiatives.

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DIVISIONAL OVERVIEW - TECHNOLOGY SERVICES

Purchased Services 1,586,320 2,096,424 2,303,900 2,463,900 2,474,230 0 2,474,230 170,330 7.4% 170,330 7.4%

Minor Capital 83,314 19,671 23,100 23,100 23,100 0 23,100 0 0.0% 0 0.0%

TOTAL OPERATING 4,010,987 4,993,940 5,656,700 5,682,600 5,936,330 238,300 6,174,630 279,630 4.9% 517,930 9.2%

Debt Charges 0 0 0 0 0 0 0 0 0.0% 0 0.0%

Transfer to Reserves 1,720,000 1,742,584 1,888,478 1,888,478 1,998,278 57,200 2,055,478 109,800 5.8% 167,000 8.8%

CAPITAL FINANCING & RESERVES 1,720,000 1,742,584 1,888,478 1,888,478 1,998,278 57,200 2,055,478 109,800 5.8% 167,000 8.8%

Direct Charges/Recoveries (2,818,655) (3,865,014) (3,556,295) (3,556,295) (3,625,327) (138,150) (3,763,477) (69,032) 1.9% (207,182) 5.8% Corporate Sustaining Charges/Recoveries (2,890,721) (3,245,402) (3,944,323) (3,944,323) (4,264,721) (157,350) (4,422,071) (320,398) 8.1% (477,748) 12.1%

TOTAL EXPENDITURES 21,611 (373,893) 44,560 70,460 44,560 0 44,560 0 0.0% 0 0.0%

Subsidy Revenue (82,829) (94,125) (44,560) (44,560) (44,560) 0 (44,560) 0 0.0% 0 0.0%

All Other Revenues (12,337) (12,337) 0 0 0 0 0 0 0.0% 0 0.0%

TOTAL REVENUE (95,166) (106,462) (44,560) (44,560) (44,560) 0 (44,560) 0 0.0% 0 0.0%

NET PROGRAM IMPACT (73,554) (480,355) 0 25,900 0 0 0 0 0

Permanent 39.8 3.0 42.8 0.0 0.0% 3.0 7.5% Temporary 0.0 0.0 0.0 0.0 0.0 TOTAL 39.8 3.0 42.8 0.0 0.0% 3.0 7.5% 0.0 39.8 2005 APPROVED BUDGET 39.8 2006 2005 2006 _{CHANGE IN 2006 BASE} BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 REQUESTED BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 BASE BUDGET TO 2005 APPROVED BUDGET CHANGE IN 2006 REQUESTED BUDGET TO 2005 APPROVED BUDGET A154

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2006 BASE BUDGET CHANGE REPORT Technology Services BUDGET & BUSINESS PLAN 2006 APPROVED BUDGET PROJECTED ACTUAL BASE BUDGET PROGRAM CHANGE REQUESTED BUDGET COMMENTS $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 3,317,000 3,182,900 3,426,300 238,300 3,664,600 109,300 3.30

Purchased Services 2,303,900 2,463,900 2,474,230 0 2,474,230 170,330 7.39 Increased costs for new SCADA Wan charges, photocopier maintenance due to LTC and other growth, and software maintenance costs

Minor Capital 23,100 23,100 23,100 0 23,100 0 0.00

TOTAL OPERATING 5,656,700 5,682,600 5,936,330 238,300 6,174,630 279,630 4.94

Debt Charges 0 0 0 0 0 0 0.00

Transfer to Reserve 1,888,478 1,888,478 1,998,278 57,200 2,055,478 109,800 5.81 Increased funding for capital program

CAPITAL FINANCING & RESERVES 1,888,478 1,888,478 1,998,278 57,200 2,055,478 109,800 5.81 DIRECT PROGRAM COSTS 7,545,178 7,571,078 7,934,608 295,500 8,230,108 389,430 5.16

Direct Charges/Recoveries (3,556,295) (3,556,295) (3,625,327) (138,150) (3,763,477) (69,032) 1.94

Corporate Sustaining Charges/Recoveries (3,944,323) (3,944,323) (4,264,721) (157,350) (4,422,071) (320,398) 8.12 Increased corporate recoveries

TOTAL EXPENDITURES 44,560 70,460 44,560 0 44,560 0 0.00

Subsidy Revenue (44,560) (44,560) (44,560) 0 (44,560) 0 0.00

All Other Revenues 0 0 0 0 0 0 0.00

TOTAL REVENUE (44,560) (44,560) (44,560) 0 (44,560) 0 0.00

NET PROGRAM IMPACT 0 25,900 0 0 0 0 0.00

2005 CHANGE IN 2006 BASE