Town of Tillsonburg 2012 Draft Budget November 3, 2011

2012 Draft Budget Current 2012 draft budget is $13,193,824 an increase of $1,173,817 from the 2011 budget or an increase of 9.77% in the requirement from taxation 2012 draft operational budget = an increase of $1,039,816 or 9.3% 2012 draft capital budget = an increase of $134,001 or 16.9%

2012 Draft Budget - Strategies How did we arrive at an operational increase of 9.3%: No increase in operational reliance on reserves. Amounts consistent with 2011 Increase in insurance costs of 2.96% or $10,500 Benefit costs renewal, a 0% increase Increase in Omers contribution rates and costs of $91,700 Removal of Tillsonburg Levy, $100,000

Strategies Continued Assumed increase in OPP contract budget of 5% or $160,000 Budget impact from OPP PSU of $66,333 Completion of FT wage and salary grid placement of $112,000 Continuation of PT wage grid placement of $14,000 Job Evaluation wage adjustments of $50,000 Implementation of market survey results in 2013, $0 for 2012 Reduction of part-time labour of $34,000

Strategies Continued FT labour conversion from 35 hours to either 37.5 or 40 hours, net $27,000 Rates and fees revenue increase, already reflected in Recreation and Development and Communications departmental budget, of $125,025. Further review and up date to the by-law is required Additional IT related expenditures of $18,000 in Development and Communications Additional FTE’s: 2 FTE in Development and Communications for $79,000, in Q1 and Q3; 1 FTE in Finance for $35,000 in Q3; 1 FTE in Water for $55,000 in Q1 to be funded by the County

Strategies Continued OMPF grant assumed to remain at $248,400. Reduction not yet known Fire department additional revenue of $50,000 and decrease in labour of $28,000 Initial Library 2012 budget increase request of $63,804. Not yet adopted by Library Board Additional HLW costs of $37,000 Net reduction in Recreation program revenue of $119,000 Additional winter maintenance costs of $8,500

Strategies Continued Culture and Tourism special events and advertising increase of $20,100 Net increase in P&I payments of $31,000. Includes $61,000 relating to new Fire truck Other Items: THI dividend in Operations $75,000 No change in general grants $5,000 No change in Culture and Advisory grant $15,000 No change in Station Arts grant $26,000 No change in Police special projects No change in cost efficiencies cross functional team $25,000

Strategies Continued Council Strategic Directions Includes: Master Culture and Recreation Plan (new capital request) $50,000 Service delivery review $25,000 Council strategic plan $5,000 Employee reward and recognition $10,000 Implement internal intranet system (new capital request) $7,500 Town Hall office renovation and merging of workplaces Town marketing plan and downtown urban design revitalization $125,000 Complete Carroll trail survey $45,000 Execute sale of TSEC; reduce debt – While a key strategy, timing is not known and therefore, not in budget

Strategies Continued New Capital funding requests Project $ One ton crew cab with slide-in sander and plow, 100% funded from DC $90,000 Trailer mounted HydroVac valve turner $75,000 Public Works front vestibule roof $7,500 Fire pagers and portable radios $5,400 Fire Personal Protective Equipment $6,000 Fire self contained breathing apparatus lease $21,027 Fire hoses, nozzles and appliances $6,720 Fire EM mobile, remote connection to incident command, potential 45% JEPP grant $16,000 Fire redundant computer for communications CAD $2,000

Strategies Continued New Capital funding requests continued: Project $ Air conditioner in Fire training room $5,000 Work station for CBO $2,800 Upgrade Building desktops to rugged laptops Engineering asset management software, funded by $10,000 reserves $12,750 Quarter Town Line, Concession to Esseltine $284,662 Quarter Town Line, Baldwin to Esseltine Top Lift, 100% funded by gas tax $115,000 Brock street, Tillson avenue to Maple Lane reconstruction, 100% funded by gas tax $325,000 Roads electronic record keeping system, Roads Patrol $30,000

Strategies Continued New Capital funding requests continued Project $ Quarter Town Line LED street lights $10,000 Roads annual resurfacing $100,000 Signal upgrade, Concession to Broadway, 90% funded by MTO $35,000 Oxford street resurfacing, Broadway to Tillson avenue, 90% funded by MTO $400,000 Broadway resurfacing, North street to 120m south, 90% funded by MTO $70,000 LED streetlights $19,200 Airport signage $2,000 Two Cemetery columbarium units, funded by future sales $40,000 Cemetery roadway pavement repairs, funded by Cemetery Maintenance trust

Strategies Continued New Capital funding requests continued Project $ Cemetery electrical connection to new water service, funded by Cemetery Maintenance trust $9,000 Cemetery sidewalk concrete removal, funded by Cemetery Maintenance Trust $6,000 Master Culture and Recreation Plan, $35,000 in reserves $50,000 Water park inflatable $8,000 Roofing repair for Auditorium entrance vestibule $38,000 Ice Resurfacer $85,000 Annandale ball diamonds, parking lot $5,000 Installation of fabric on Museum changing gallery walls $10,000

Strategies Continued New Capital funding requests continued Project $ Annandale house porch repairs and painting, funded by Annandale Trust $15,000 Laser fiche, 4 year commitment $20,000 Intranet $7,500 Computer replacements $60,000 Capital funding requests to note Project $ Rural Broadband project, $100,000 proposed to be funded by debt $1,461,500 Highway 3 Business Park, final design and tender, proposed to be 100% funded by debt $75,366 Project Satellite, funded by $75,000 THI dividend and reserves of $395,000 $470,000

Strategies Continued Council support for the strategies utilized in the 2012 budget? Questions and answers?

Opportunities and Risks Risk: OPP contract negotiations not final Risk: OMPF grant reduction not yet known Fire Services labor agreements to be negotiated Opportunity and risk: Library budget request amount and budget treatment not yet known Opportunity and risk: additional OPP PSU for 2011 exceeding the budget amount of $75,000 Opportunity and risk: Fire department gave notice to it’s current customers for 2012 that there will be a dispatch rate increase Opportunity and risk: the 2011 reserve balances remain low at $2,404,622 which includes development charges of $774,381

Opportunities and Risks Continued Opportunity and Risk: Implementation of the Master Culture and Recreation Plan Opportunity and Risk: pre-budget Roads tender critical for obtaining best pricing Opportunity and Risk: Sidewalk inspection program, however, could offset insurance claims Opportunity and risk: changing the tax installment due dates Opportunity and Risk: Sell assets: TSEC; Parks Shop; surplus land

Opportunities and Risks Opportunity: Invest in the future, technology (Road Patrol; laser fiche; ACR leverage;). Work smarter, not harder Opportunity: Continued use of ACR improves customer service; streamlines business processes; and improves reporting Opportunity: Improvement of marketing and communications to attract investment and interest; increase jobs Opportunity: Cost efficiencies are found exceeding $25,000 Opportunity: build reserves; pay down debt

Impact to the Taxpayer Using 2011 CVA amounts, before any anticipated growth or changes in the median residential assessment value, the impact to the residential median taxpayer of a 9.77% increase in the requirement from taxation is estimated to be approximately $136.17

Debt Reduction Draft Plan 2012 debt summary to be reviewed Any annual surplus to go to reserves to pay down debt on maturity Review all debt for opportunities to collapse, renegotiate and reduce interest charges Sell surplus assets, with initial focus on residential lot sales All net proceeds from sale of assets to go to reserves Reserves used to pay down debt, beginning with TD float rate debt

2012 Draft Budget Summary Management requests direction from Council on the next steps