Our Municipality’s Finances Planning for progress Larry Dumoulin October 9, 2018 Bears Den, Deep River, ON

Our Needs and Wants

“Some” of Our Needs & Wants Marketing the Town Population Growth Water Quality Road resurfacing and curbing Vehicle and Equipment Replacement Building Maintenance Downtown Revitalization

“Some” of Our Needs & Wants High Speed Internet Mix of Housing Options Waterfront and Keys Property Development New residential housing Business Development Business Sector and Retail Growth YOUR THOUGHTS?

Deep River’s Financial Position The Challenge Deep River’s Financial Position

Income – YOUR Taxes 2008-2018

YOUR Taxes 2008-2018 From $2,123,477 to $3,593,609 Increase: Average: $1,470,132 69.2% Average: 6.3% each year $735 per household

Reserves (YOUR Savings) 2008-2017

Reserves (YOUR Savings) 2008-2017 From $4,510,477 to $2,931,787 Decrease: $1,574,690 53.6% Average: 5.4% each year $787 per household

2017 Quick Comparison Deep River Laurentian Hills Difference Budget $11,520,438 $3,755,272 $7,765,166 Savings $2,931,787 $5,300,814 -$2,369,027 Source: 2017 Financial Information Returns – Ministry of Municipal Affairs and Housing

What Does all this Mean? Town’s Income has been Rising Town’s Savings have been Declining RESULT; Less Money for: Water & Sewer Streets General Infrastructure “Growth” Initiatives

Taxes spent on Capital 2008-2017 2008 - > $708,000 2018 - < $176,550 Reduced by $500,000 within 10 years In the last decade “starved” our capital budget by more than 5 million dollars Operating Budget largely unaffected and growing Infrastructure has suffered

My Proposal Reduce the Annual Operating budget $500,000 CAP Tax “Growth” to “New” Assessment WHY? Take responsibility and control of Limited Taxes Restore Capital Financing without Raising taxes Provide funds for some “Growth” initiatives Position OUR Town for “Growth”

My Proposal WHERE CAN WE REDUCE SPENDING? Administration / Council Operations ($200k) Fire Service Delivery model ($175k) Police Service ($125k)

Administration Administrative staffing costs have increased 48.6% in the past 4 years, 2.5 times more than emergency services (18.3%). Restructure management and staff resources More robust use of technology Enhance Communication between and Municipality and residents

Fire Service Discuss the CNL Contract - expires in 2021 Continue and Build on the “Composite” model Reduce full-time firefighters from 8 to 6 Implement an “on call” schedule for our part-time Firefighters Guarantee Minimum Response of 5 Firefighters Enhance Public and Firefighter safety

Police Service Build on the community’s decision to continue with Deep River Police Service I believe Laurentian Hills residents are ready to work in partnership with Deep River Contract Service Joint Service Shared Service Cost Efficiency Service / Response Improvement Cooperative approach with neighbours

Alternatives to ‘Right Sizing’ Other Ways to Raise $500,000 : Build 125 new homes valued at $400,000 OR, Increase taxes 7.5% Residential = $285,000 (Avg. $142.50 per House) AECL = $180,000 Businesses = $35,000

What Can We Get for $500,000? $500,000 Each Year Buys Us: Pay-off $4,250,000 @ 3% within 10 years Pave 2.0 km of roadway Completely pay for our annual garbage, recycling, spring and fall pickup

‘Right Sizing’ Objectives Long-term Sustainability Position Town for Genuine “Growth” Maintain and Improve Customer Services Improve Communications with Residents Streamline Decision-Making Process Provide Meaningful Public Engagement

Guiding Principles Any changes in service subject to “Open” public discussion with opportunity for meaningful dialogue with residents Streamline Processes and Personnel Re-train Employees Where Possible

THANK YOU FOR LISTENING AND NOT FALLING ASLEEP Now, in the spirit of “Harmony”, let’s talk