TOWNSHIP OF NORTH HURON 2016 Draft Budget #1 Presentation February 8, 2016

Budget Process

Planning Stage Budget process is a complex and lengthy procedure Review priorities from Council – grants and projects – more difficult each year – team work exercise Department Heads start gathering information in the fall Starting point – various cuts Many factors are incorporated into the budget Increased costs, inflation, priorities, decreased funding, end target, previous year actuals

Budget Process Implementation Phase Translates the budget numbers into action Budget is an estimate – we still try to get the best price throughout the year Monitoring Phase Continuous process that doesn’t stop with the passing of the budget – 1/4ly Council reports Evaluation Phase Evaluate current operations and procedures and make any changes – file Annual Reports

Budget Schedule Budget data compiled from Oct - Dec 1 st Draft sent to SMT – January 4, 2016 Treasurer/CAO meeting – January 7, 2016 Initial discussions with SMT Initial budget cuts from SMT 2015 Cut off date – January 28, 2016 Meeting dates: February 8, 10 & 17 YTD numbers added – not totally completed

Next Steps First two meetings and part of the third meeting are for information purposes with no changes made Feb 17 th meeting – staff will be looking for direction on changes to get to an acceptable position and new meeting schedule set Next version will reflect council direction and updated changes

Reduction of OMPF funding - $53, Increased OPP costs - $45, (Blyth & E/W) Increased utility costs Increased wage and benefit costs Shifting of tax burdens – declining industrial and commercial values and increased farmland values (E/W) Infrastructure Deficit – Asset Management Maintaining existing programs and services Ongoing Challenges

SMT Budget Cuts/Changes Project/DescriptionDepartmentAmount LED S/L ReplacementPublic Works$ 224, Front End LoaderPublic Works$ 150, Reduce Transfer to ReservePublic Works$ 25, Aquatic CentreRecreation & Facilities$ 57, Townhall HVACRecreation & Facilities$ 20, Memorial HallRecreation & Facilities$ 233, Children’s Centre FlooringRecreation & Facilities$ 6, Children’s Centre Roof ReserveChildren’s Centre$ 25, Children’s Centre Operating ResChildren’s Centre$ (8,404.00) Museum FlooringRecreation & Facilities$ 3, Total$ 737,136.00

2016 Draft Budget - Highlights Applicable wage adjustments – 1.49% Patrick Street Project – no OCIF funding Decrease in OMPF - $53,100 Increase in OPP Billing costs - $45, Increase in Revenue – Rates & Fees by-law OCIF Formula Based grant - $92,375 will be applied to Arthur St – second version Phase 2 – Asset Management - $21,500 (Gas Tax)

Highlights continued Roads Needs Study - $19, (Gas Tax) Phase 2 – Westmoreland St – Gas Tax Debt Payments ( P & I) - $249, $100,000 Hospital Donation included $40,000 Maitland River Donation included New Well in Blyth – construction portion Water & Sewer – status quo – changes New Fire Pumper/Tanker – included - reserves

Highlights - continued New Page – FPO & NH Only – separate out expenses not shared by partners Development Charges update - $18,500 ESTC – projected profit used to offset deficit DayCare Roof - $120,000 – offset by reserves Physician Recruitment – adjusted MVCA – adjusted Columbariums – Wingham & Blyth

Summary Total Expenditures - $14,468, First draft - Increase in spending - $481, Increase in amount raised by taxation – 12.83% 1% increase generates approx. $45, Capital Spending and Gas Tax spending will be part of discussions Council priorities – number of requests