2021 Budget Presentation
Overview
Working Session Presentation
1. Where are we now?
2. Community Engagement
3. 2021 Proposed Operating Budget
4. 2021 Proposed Capital Budget
5. Capital Planning, Reserves & Debt
Management
6. How to Use Reserves!
7. 2021 Recap
Where Are We Now?
14 Dec. 2020
2021 User Fee Report
11 Jan. 2021
Presentation by Watson & Associates
Economists – Water & Wastewater
Study
25 Jan. 2021
Council Working Session of 2021 –
2022 Budget & Business Plans
(Tentative – Feb 8, 2021 if needed)
8 Feb. 2021
Presentation of 2021 Water &
Wastewater Rates and By-law for
Consideration
Context
Annual Budget Process (2019-2022)
2019-2022 Corporate Strategic Plan
Priority Areas
INVESTING IN
INFRASTRUCTURE
A GREEN AND
SUSTAINABLE
FUTURE
SERVICE DELIVERY
EXCELLENCE AND
INNOVATION
CULTIVATING SAFE,
HEALTHY AND
RESILIENT
COMMUNITIES
Community
• 686 Paved Roads
• 150 Unpaved Roads
• 9 Bridges
• 25 Culverts
• 53km of Trails
Transportation
•3 Recreation Centres •4 Community Halls•King Heritage and Cultural Centre (4 Buildings) •Operations and Administrative Centres (5
Buildings)
•Former School (Ansnorveldt) •Former King City Seniors Centre •Township Pump Houses
•4 Libraries
Facilities
• 2 Township Parks (Cold Creek and
Centennial)
• 6 Community Parks
• 15 Neighbourhood Parks
• 5 Parkettes
• 1 Dog Park
Parks
Approved Operating Budget
(Balanced)
28.7% 28.7% 19.7% 7.0% 6.4% 4.1% 3.6% 3.3% 2.3%
Total Expenses $45.7 Million
Total Revenue $45.7 Million
$5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Other $6.9 15% Utilities $1.5 3% Contracted Services $6.8 15% Materials, Equipment, and Supplies $4.3 9% Transfers to Reserves / Capital $8.3 18%
Salaries & Benefits $17.9 39% $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Other Revenue Other Revenue $0.9 2% Transfer from Reserves $3.7 8%
User Fees $7.0 15% Tax Revenue $33.7 74%
2021 Proposed
Operating
Budget
• Labour Costs
Employee Compensation
• Increased Service Contract Costs
• Increased Cost of Materials
Growth
• Estimated Rate of Utility Increases
• Increase Insurance Cost
• Banking Fees and Charges
Other
2021 Proposed
Operating
Budget
• Increase Based on Projections
• Increase Due to Fee Increases
• Increase Due to New Fees
Revenue
• Various Divisions Based on 3 Year Average
Reductions
• Increase in Supplementary Projections
• Assessment Growth
• Reduction in the Town Initiative Account
Other
Proposed 2021
Operating
Budget
Base Tax Levy Increase = 0%
2021 Non-Discretionary
Reductions of ($876,331)
2021 Base Operating Increases
of $876,331
2021 Program Change Requests
Community Services
1
Cold Creek Operator (Conversion)
$
26,300
Community Services
2
Climate Change & Environmental Coordinator
71,750
Library
3
Library Collection
21,965
Public Works
4
Disposal of Ditching Materials
100,000
Administration
5
Supervisor - Service King
123,230
Fire
6
Fire Administration (Conversion)
13,260
Public Works
7
Operators (2) Water & Wastewater
-Total Program Changes
$
356,505
Program Change Request
Administration
9%
Community Services
25%
Corporate Services
7%
Finance
1%
Fire
11%
Growth Management
6%
Library
7%
Public Works
34%
2021 Budget
By Department
Expenditures by Department
Administration, 2,446,376.80 , 5% Community Services, 9,281,416.05 , 20% Corporate, 2,453,022.46 , 6% Corporate Accounts, 11,441,224.30 , 25% Finance, 1,041,157.08 , 2% Fire & Emergency Services, 2,947,358.60 , 7% Growth Management, 3,937,138.55 , 9% KT Public Library, 1,917,482.00 , 4% Public Works, 10,195,017.50 , 22%Description 2021 Proposed Budget % Salaries and Benefits $ 18, 950,299.32 41%
Transfers to Reserves /
Capital $ 8,936,538.00 19% Materials, Equipment and
Supplies $ 4,458,787.40 10% Contracted Services $ 5,788,611.50 12% Utilities $ 1,520,841.64 3% Other $ 6,911,920.68 15%
Total Expenditures $ 46,566,998.54
Expenditures by Department
Expenditures by Type
Revenue by Department
Description 2021 Proposed Budget Tax Revenue $ 33,985,200.11
User Fees $ 7,211,059.50
Transfer from Reserve $ 3,633,009.35
Grants $ 474,420.00 Other Revenue $ 906,805.00
Total Expenditures $ 46, 210,493.96
Community Services, 2,825,147.50 , 6% Corporate, 504,225.00 , 1% Corporate Accounts, 37,405,415.11 , 83% Finance, 762,500.00 , 2%Fire & Emergency Services, 175,000.00 , 0% Growth Management, 2,448,317.35 , 5% Public Works, 1,183,084.00 , 3%
Revenue by Department
Revenue by Type
Proposed 2021
Operating
Budget
2021 Program Change Requests
of $356,505
2021 Non-Discretionary
Reductions of ($876,331)
2021 Base Operating Increases
of $876,331
Proposed 2021 Capital Budget
Administration, $130,000 , 1%
Community Services, $8,496,380 , 39%
Fire & Emergency Services, $650,000 , 3% Growth Management, $245,000 , 1% Library, $104,000 , 0% Public Works, $12,339,096 , 56% Wastewater Reserve Infrastructure Reserve Tax Capital Reserve Tax Supported Capital DC Reserve Fund Parkland Reserve Fund
Gas Tax & OCIF
Reserve Fund Other Total
2,522,500
The 2021 Proposed Capital Budget consists of several projects important to note:
Town Wide Recreation Centre - $37,000,000
Various Community Parks - $2,000,000
• Blue Heron
• Kettle Lake
• Tomlinson Gardens
• Nobleton Lions Community Park
• Tasca Community Park
• St. Andrews
• OSIN Park
Schomberg Community Hall Renovation and Accessibility Upgrade - $1,000,000
Growth Related Studies - $245,000
Road related Infrastructure Repairs & Conversion of Gravel Roads - $2,500,000
Nobleton Sewers Phase 3 - $14,625,000
The chart above is the same 2021 Proposed Capital Budget by type: ($ Millions)
Proposed 2021 Capital Budget
$- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00
Information Technology Equipment Fleet & Equipment Water & Wastewater Parks Roads & Related Works Studies Libraries Municipal Buildings
Proposed 2021
Capital Budget
2021 Proposed Capital Budget No Increase
2021 Program Change Requests of $356,505
2021 Non-Discretionary Reductions of ($876,331)
2021 Base Operating Increases of $876,331
Tax Increase result of 1.13% from 2021
1 % current = $316,852
Ensuring Financial Stability
MANAGING GROWTH AND
STRATEGIC ALLOCATION OF
RESOURCES
MULTI-YEAR BUDGET AND
BUSINESS PLANS
STRATEGIC RESERVE
PLANNING AND DEBT
Proposed 2022 Capital Budget
Administration,
100,000 , 0%
Community Services,
13,411,640 , 50%
Fire & Emergency
Services, 440,000 , 2%
Library, 104,000 , 0%
Public Works,
12,766,765 , 48%
Wastewater Reserve Infrastructure Reserve Tax SupportedCapital DC Reserve Fund
Gas Tax & OCIF
Reserve Fund Other Total Funding
2,442,815
Capital Budgets
2019-2022
$8.4
$8.1
$9.7
$9.0
$29.3
$34.8
$22.0
$26.8
$5
$10
$15
$20
$25
$30
$35
$40
$
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$
1
0
$
2
0
$
3
0
$
4
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2
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1
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2
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1.44 3.23 5.76 9.36 12.62 11.30 12.17 11.36 11.54 12.54 0 2 4 6 8 10 12 14 Growth in Infrastructure Reserves “Planning for Future Needs”
$ in millions $7.1 $13.5 $21.1 $20.4 $29.3 $34.8 $21.9 $26.8 0 10 20 30 40
Capital Spend by Year
$ in millions
Responsible
Financial Planning
Infrastructure
Reserve Planning
Predictability in
Tax Rates
• Expanded Investment in Capital Infrastructure to
serve the needs of this growing municipality
• Growth & Stability of Infrastructure Reserves
• Property Tax Rates will continue to decline as
incremental assessment comes online
1.76 3.91 4.29 4.65 4.65 4.40 4.20 4.40 0 1 1 2 2 3 3 4 4 5 5 2015 2016 2017 2018 2019 2020 2021 2022 Annual Op-Ex
Tax Capital Reserve Contributions “Pay-as-you-Go” Capital $ in millions 1.51 0.30 3.58 3.23 3.23 3.23 4.30 4.30 0 1 1 2 2 3 3 4 4 5 5 2015 2016 2017 2018 2019 2020 2021 2022
Annual Op-Ex
“Asset Management” Reserve
Contributions
$ in millions
• Annual Op-Ex Infrastructure Reserve Contributions
$8.5M (2021) and $8.8M (2022)
• Asset Management Plan
(Approved in 2016)
Policy
(Approved in 2019)
Implementation (
for 2021)
Reserve Management
Strategic Allocation
of Resources
Effective Financial
Planning
$1.5 $1.5 $1.8 $3.9 $4.3 $4.6 $4.6 $4.4 $4.2 $4.4 $0.6 $0.8 $1.5 $0.3 $3.6 $3.2 $3.2 $3.2 $4.3 $4.3 $0.0 $2.0 $4.0 $6.0 $8.0 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22
Tax Supported Capital (TSC) Infrastructure
(“Pay-as-you-Go” Capital)
(Asset Management)
Debt Management
$20
$18
$15
$17
$17
$14
$11
$8
$6
$3
$0
$10
$20
$30
$40
$50
$60
$70
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
$ in Millions
Forecast: Total Debt (2020-2029)
Net Debt Owing at Year End
Estimated Additional L-T Borrowing
Annual % Increase in Levy Requirements
Multi-Year Term of Council Budgets
(2019-2022)
2.30%
2.89%
1.13%
3.28%
1%
2%
3%
4%
5%
2019
(Approved)
2020
Approved
2021
Proposed
2022
Forecast
Reserves
Operating
Budget
Tax Levy
If you use tax rate stabilization it is one-time
and could be is required again in the 2022!
Tax Billing Tax Increase across all properties (Residential & Commercial)
* New Base Budget for 2022
How Do Reserves Work?
Description
2021 Proposed
Budget
Salaries & Benefits
$
18,950,299.32
Transfers to Reserves / Capital
8,936,538.00
Materials, Equipment, and Supplies
4,458,787.40
Contracted Services
5,788,611.50
Utilities
1,520,841.64
Other
6,911,920.68
Total Expenditures
$
46,566,998.54
Description
2021 Proposed
Budget
Tax Revenue
$
33,985,200.11
User Fees
7,211,059.50
Transfer from Reserves
3,633,009.35
Grants
474,420.00
Other Revenue
906,805.00
Total Revenue
$
46,210,493.96
2021 - Tax Increase
356,504.58
Total Revenue
$
46,566,998.54
2021 Overall
Budget Impact
Total Tax Levy $256,505
Additional Assessment Growth ($100,000)
2021 Proposed Capital Budget No Increase
2021 Program Change Requests of $356,505
2021 Non-Discretionary Reductions of ($876,331)
2021 Base Operating Increases of $876,331
2021 Operating Budget – Overall Impact
2021
Operating Budget
$ in Millions
Gross Expenditures
$ 46.7
Gross Revenues
$ 46.2
Proposed 2021
Increase in Tax Levy
+ $ 0.4
Less: Additional Assessment Growth
-$1.00
Proposed Net Tax Levy Increase
(Township portion only)
0.81%
Projected Increase in
2021 2021 Tax Levy Township Proposed Tax Levy Portion Total Tax Levy versus 2020
$500,000 $509,450 $4,039.99 $74.94 $61.63 $13.31 $600,000 $611,340 $4,847.99 $89.93 $73.96 $15.97 $700,000 $713,230 $5,655.99 $104.92 $86.28 $18.64 $800,000 $815,120 $6,463.99 $119.90 $98.61 $21.29 $900,000 $917,010 $7,271.99 $134.89 $110.93 $23.96 $1,000,000 $1,018,900 $8,079.99 $149.88 $123.26 $26.62 Assessment Value 2020 +1.89% 2021 Regional Proposed Tax Levy Portion
Estimated Impact – Residential
“Blended Tax Levy Increase”
Assessment @ $971,996
Assumptions:
Region @ 2.96% and Education @ 0.00%
