Draft Budget Overview to the Chamber of Commerce March 16, 2011 Presenters: John Taylor, Regional Councillor Mike Mayes, Director, Financial Services/Treasurer

2 Budget Process Recap September Fees and Charges January 31Overview of Preliminary Budget February 17Budget Listening Session February 28Budget binders distributed March 4Budget available for the public March 7CoW Budget deliberations

3 Strategic Plan Vision, Mission & Core Values Vision What we aspire to. Well beyond the ordinary With direction from the community we defined our ultimate destination as a community that is well beyond the ordinary. It’s an extraordinary goal that requires deliberate, strategic and guided steps, each taking Newmarket closer to its vision. Mission How we’ll get there. Making Newmarket even better The corporate mission exists to guide employees in their daily jobs. By striving to make Newmarket even better, employees will help achieve the vision. Values The principles that guide our actions and behaviours. Courage & Creativity Accountability Accessibility Respect & Integrity Excellence The core values are the guiding principles the employees of the Town have chosen to live by as they strive to make Newmarket even better.

4 Strategic Plan Focus Areas Living WellLiving well means focusing on health, safety and the environment to promote activity and enrich lives. Well-BalancedWell-balanced means encouraging a sense of community through an appropriate mix of land uses and amenities. Well-Equipped & ManagedWell-equipped and managed means implementing policy and processes that reflect sound and accountable governance. Well-Planned & ConnectedWell-planned and connected means strategically planning for the future to improve information access and enhance travel to, from and within Newmarket. Well-RespectedWell-respected means inspiring partnerships and co- operation with stakeholders that revolve around well- being, synergy and balanced living. The 5 Wells

5 The Town of Newmarket is Diverse and Complex 981 full and part-time employees $110 million budget 212 km of roads, 290km of watermains, 50 km of trails, 365 hectares of parks Estimated replacement value of capital assets = $1.1 billion Servicing a population of 84,351 in 27,350 households Managing many lines of business on a day-to-day basis

6 The Town of Newmarket is Competitive Comparative tax rate – 2010 BMA study Customer satisfaction 96% of residents are satisfied living in Newmarket nearly 80% are satisfied with the services received from the Town Newmarket is ranked 15th out of 179 Canadian cities and towns and best place to live in York Region

Tax Comparators MeasureNewmarketRegion Average GTA Average BMA (Ontario) Average Detached Bungalow$3,151$3,432$3,380$2,915 Senior Executive Home $5,190$5,638$5,675$5,438 Multi-Residential walk-up $799$822$1,364$1,327 Multi-Residential mid/high rise $960$953$1,460$1,557

8 MeasureNewmarket Region Average GTA Average BMA (Ontario) Average Net Municipal Levy per Capita $1,036$1,222$1,208$1,228 Net Lower Tier Levy per Capita $468$507 Property taxes as a % of Household Income 3.50%3.70%4.10% Property Tax and Water / Sewer Rates as a Percentage of Income 4.20% 4.30%5.00% 2010 Tax Comparators

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11 MeasureNewmarketRegion Average GTA Average BMA (Ontario) Average Office building per sq ft$2.36$3.02$3.19$2.89 Neighbourhood Shopping sq ft $3.63$3.39$3.72$3.36 Hotel per suite$1,246$1,431$1,561$1,803 Standard Industrial sq ft$2.05 $2.19$1.83 Large Industrial sq ft$1.50$1.35$1.51$ Tax Comparators

12 Responsible Financing Strategies Asset Replacement Fund (ARF) $12 million annually for $1.1 billion in assets The Town of Newmarket Debt Policy limit of 10% (currently 6.5%), 85% of which is financed from non-tax sources Service Pricing Policy 5-year Forecast Service Reviews

13  Partnerships (Government-to-Government, Other) N6 Waste Management Customer Service Centre/Region, etc. N6 training cooperative Business  Optimizing 2010 Surplus  Gapping, Hiring Delays  Outsourcing  Sponsorships  Service Pricing Policy  Trail Levy  Recreation Surcharge  Responsible Policies (Debt, Benefits, Cola, etc.)  Maximizing opportunities for cost recovery (e.g. VIVA)  Ongoing service level, department and org structure reviews  Remaining ‘opportunity aware’ and acting on these as appropriate Efficiency & Effectiveness Measures / Actions / Innovations

14 Internal & External Assessment  Continuous Improvement Reviews Let’s Make it Happen (2002) Results Based Budgeting – Service Level Review (2006) Call to Action (2009) Service Delivery Review – Business Planning & Budget Process (2010)  Human Resources Department Review (2004)  Community Services Commission Organizational Review (2007/08)  Service Alignment Review (2009)  Community Surveys (2002, 2005, 2010)  Budget Open House (2008, 2009, 2010)  IT Review (2007)  PIC’S (e.g. Magna, Operations Centre, CUSP, etc.)  Fees & Charges Review

Budget Priorities Strive to provide quality programs and services to maintain a high level of community satisfaction. Provide for the hiring of 20 new Firefighters to meet growth and ensure public safety. Maintain a responsible and affordable tax levy to respond to current and future needs. Incorporate carry-over obligations to accommodate growth and new facilities. Encourage public engagement and consultation in the budget process through enhanced communication efforts.

Drivers & Challenges Driver /ChallengeExample Legislation & AgreementsMeeting legislated requirements and agreements [i.e. Accessibility for Ontarians with Disabilities Act (AODA), CYFS] Service Level and GrowthService Delivery Levels, Community Safety/Emergency Services, Asset Replacement Fund Reserves, Parks, Trails & Open Spaces Decreased RevenuesParticipation rates changing due to demographic shifts, decreasing Hydro dividend Increased ExpensesCost of fuel, electricity & other equipment and materials Workforce ConsiderationsMaintaining a sufficient workforce in an increasingly competitive labour market Economic RealitiesSlower than expected recovery, increasing global unrest Environment ShiftsMore complex standards, variable weather conditions Technology NeedsIncrease in on-line services, communication methods (i.e. Twitter, Facebook, etc.) Places to Grow OpportunitiesInvestment by others, new ventures, grant opportunities

17 Budget Challenge Town $ increase CYFS $ increase Library $ increase Total $ increase Tax % Increase Increase from 2010 Base 858, , ,049 1,793, % Gapping reduction 150, % Increase in winter control 394, % Hydro dividend decrease 137, % OMERS221,31670,59612,000303, % Dispatch service35, % Additional firefighters 1,069, % CUSP 361, %

18 Budget Challenge Town $ CYFS $ Library $ Total $ Tax Increase % Other growth requests 809, , ,6351,079, % Restoring level of Capital Financing 296,000 (3,026) (7,678) 285, % Planned Increase in ARF contribution 631, ,366 30, , % Monday service 119, % Other Enhancement requests 205,809 41,585 (1,400) 245, % Subtotal 4,066,818 2,172, ,5986,781, %

19 Budget Reductions Town $ CYFS $ Library $ Total $ Tax Increase % Continuation of Corporate- wide Gapping (150,000) (0.38%) Reduce street lighting budget (200,000) (0.50%) Energy reserve (80,000) (0.20%) Increase in bank interest (115,000) (0.29%) De-annualize additional firefighters (242,964) (0.61%) De-annualize CUSP (216,187) (0.55%)

20 Budget Reductions cont. Town $ CYFS $ Library $ Total $ Tax Increase % De-annualize other Growth requests (75,216) (40,889)(116,105) (0.29%) Deferred growth requests (436,412) *(92,445)*(115,635)(644,492) (1.63%) Assessment growth (808,621) (2.04%) Supplementary Taxes (250,000) (0.63%) Supplementary taxes – extra (184,665) (0.47%) * To be reviewed by JCC and Library Board.

21 Budget Reductions cont. Town $ CYFS $ Library $ Total $ Tax Increase % Reserve Funding for Growth items (6,500) (40,889) (47,389) (0.12%) Reserve Funding for Enhance items (80,000) (0.20%) Deferred Enhance requests (90,016) (119,406) (209,422) (0.53%) Total Reductions (2,692,617) (417,187) (235,041)(3,344,845) (8.44%)

22 Further Budget Reductions TownCYFSLibraryTotal Tax Increase Subtotal after reductions $1,374,201$1,755,698 $306,557 $3, 436, % Defer capital financing increase ($296,000)($ )(0.75%) Defer ARF increase ($631,780) ($143,366)($30,586) ($805,732) (2.03%) Current budget status $446,421$1,612,332 $275,971$2,334, % Tax Increase1.13%4.07%0.70%5.89%

23 Risk and Impact on Future Years De-annualization deferring 1.45% tax increase to 2012 additional fire staff operating costs for CUSP other growth-related initiatives Capital financing is being kept at the 2010 levels asset replacement fund had not been increased since 2009

24 Breakdown of Tax Increase Under Consideration (Preliminary 1st Draft) CYFS budget has been reviewed by JCC Library budget Growth and Enhancement items have been reviewed by the Board. Town to update Library budget TownCYFSLibraryTotal Base2.51%1.67%0.67%4.85% Mandatory0.56%0.27%0.03%0.86% Growth1.10%2.04%0.00%3.14% Enhancement0.09% 0.00%0.19% Subtotal4.26%4.07%0.70%9.03% Assessment Growth Supplementary Taxes (2.04%) (1.10%) 0.00% (2.04%) (1.10%) Total1.12%4.07%0.70%5.89%

25 How our Tax Dollar is Spent Notes: $113 / month $1366 / year

Residential Property Tax Under Consideration Regional Municipality of York is projecting a tax increase of 1.94%. Tax shifts due to variable assessment growth in the province could lower the increase applicable to Newmarket in 2010 by 0.5%. The Region continues to benefit from uploading to the Province. Last year this has allowed them to reduce their tax increase by 3.3%. School Board increase is based on historical trends. Tax shifts due to variable assessment growth in the Region could lower the increase applicable to Newmarket in 2010 by 0.24%. If the 2011 tax shift is the same as in 2010, the all-in tax increase would be 2.17% $ Change% Change Town $ 1, $ 1, $ % Region 1, , % Municipal 2, , % School Board % Total $ 3, $ 3, $ %

Commercial Property Tax Under Consideration Property taxes per square foot for Neighbourhood Shopping from the 2010 BMA Study $ Change% Change Town $ 0.73 $ 0.77 $ % Region % Municipal % School Board % Total $ 3.63 $ 3.69 $ %

Industrial Property Tax Under Consideration Property taxes per square foot for Standard Industrial from the 2010 BMA Study $ Change% Change Town $ 0.42 $ 0.44 $ % Region % Municipal % School Board % Total $ 2.05 $ 2.08 $ %

29 Draft 2011 Capital Budget New Gross Expenditures = $25.5 million Spending will be limited to available funding – ARF, other reserve funds, DC’s and Capital Financing from Operations. There has been no increase in these funding sources based on the current operating budget capital budget carryovers Funding for incomplete 2010 projects and commitments are carried over into 2011 if still necessary. Council has already approved them and funding has been allocated. Accounting and Policy Changes

30 To engage the public in the budget process. To better inform the public of the challenges facing Newmarket and innovative approaches Newmarket is taking to protect the financial sustainability of the Town. To demystify the budget and make it a more understandable and approachable process. Public Consultation & Communication Plan

31 Public Consultation & Communication Plan

32 Public Consultation & Communication Plan

Budget Meeting and Events Schedule DATEACTIVITY March 21Budget Open House #1, Ray Twinney Recreation Complex, 7 to 9 PM March 26Budget Open House #2, Newmarket Operations Centre, 1 to 3 PM March 28Special Committee of the Whole Meeting, Municipal Offices, 1:30 PM April 4Special Committee of the Whole Meeting: Budget Report, Municipal Offices, 1:30 PM April 19Council Meeting: Final Budget Approval, Municipal Offices, 7 PM

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35 Thank you & Questions