2016 Draft Budget Committee of the Whole November 16, 2015 Presenters: Ian McDougall - Commissioner, Community Services Amber Chard – Senior Communications Officer Mike Mayes – Director, Financial Services/Treasurer

Today’s Objectives Consider Infrastructure Levy Confirm schedule Receive update to 6 year water and wastewater financial plan Receive supplementary budget information Approve 2016 water rates Approve remaining fees and charges 2

2016 Budget Guidelines Aligning guidelines with target~ challenging, yet attainable Alignment with Council Strategic Priorities No New Carry Overs into 2017 (exception: CYFS) Achievable revenues and expenditures Accommodate 2015 Operating Carry - Overs Maintain Service Levels in a Growing Community Balancing Risk 3

2016 Budget Key Milestones Q1Q2Q3Q Budget Process and Approval Budget Coordination Committee Process Map Treasurer/Councillor Meetings Public Engagement Launched Town JCC/Library Budget Development and Review OLT Review and Recommendations SLT Further Review and Refinement Preliminary DRAFT Budget put out for Public Input Recommended Budget Approval Key Milestone

CORPORATE VISION Newmarket – A community well beyond the ordinary EMPLOYEE MISSION Making Newmarket Even Better CORE VALUES Courage & Creativity, Accountability & Accessibility, Respect & Integrity, Excellence CORPORATE STRATEGIC PLAN DIRECTIONS COUNCIL PRIORITY FOCUS AREAS & PRIORITIES SLT ACTION PLAN - COMMISSION & DEPARTMENT GOALS EMPLOYEE PERFORMANCE PARTNERSHIP GOALS Living WellWell-BalancedWell-Equipped & Managed Well-Planned & Connected Well-Respected We’ll focus on health, safety and the environment to promote activity and enrich lives. We’ll encourage a sense of community through an appropriate mix of land uses and amenities. We’ll implement policy and processes that reflect sound and accountable governance. We’ll strategically plan for the future to improve information access and enhance travel to from and within Newmarket. We’ll inspire partnerships and cooperation with stakeholders that revolve around well-being, synergy and balanced living. 1. Economic Development / Jobs 2. Enhanced Recreation Opportunities 3. Community Engagement 4. Efficiency / Financial Management 5. Traffic Safety and Mitigation a.Implementing affordable broadband b.Reviewing & Prioritizing Economic Development Strategy c.Revitalizing Community Centre Lands & addressing downtown parking needs d.Creating vibrant & livable Davis Drive & Yonge Street corridor strategy e.Supporting Innovative projects & partnerships f. Enhancing Recreation & Community Facilities g. Supporting Community & Neighbourhood Projects h. Aligning ourselves with communications best practices i. Engaging our changing resident demographics j. Ensuring effective & efficient services k. Measuring and benchmarking our financial performance l. Ensuring safe streets m. Improving traffic congestion n. Supporting major transit service enhancements See Council Priorities Summary Action Plan for more details 5

Community Engagement and Communications 6

Tactics 7 Website Community events Media releases Advertisements (print and radio) Budget tool Social media E-newsletters Mail out (tax bills) Council Communications tool kits

TOWN SERVICES Decrease (between 5 – 20 %) Maintain Increase (between 5 – 20%) Bylaw and Licensing services 19 (15%)81 (64%)27 (21%) Community programs and events 27 (21%)66 (52%)34 (27%) Facilities, parks and trails24 (19%)59 (46%)44 (35%) Fire Services26 (20%)83 (66%)18 (14%) Planning and Development Services 29 (23%)72 (57%)26 (20%) Public Library Services39 (30%)63 (50%)25 (20%) Roads, bridges and sidewalks 9 (7%)81 (64%)37 (29%) Solid waste management 8 (6%)100 (79%)19 (15%) 8 What have we heard so far?

9 127 participants (to date) have participated in the online budget tool. Hundreds of comments have been accumulated through the online tool. The majority of respondents would like to see services maintained or increased in all areas.

Next steps 10 Online budget tool will remain open until November 30, 2015 !

Supporting Budget Information 1.Schedule 2.Decision Packages 3.Drivers – CPI 4.Drivers – 5 Year Trends 5.Reductions and Refinements 6.Growth Revenue 7.Tax-Supported Operating Budget Outlook 9.Infrastructure Levy 10.Utility Budgets 11.Capital Budget 11

1. Schedule 12

2016 Budget Schedule ACTIVITYDATESTATUS Draft budget info available to public and on website November 16In Process CoW - Public meeting on the draft budget and remaining Fees & Charges November 16In process CoW – Public meeting on the draft budget if required November 23 / December 7 TBD Council approval of Budget and remaining Fees & Charges November 30 / December 14 TBD 13

2. Decision Packages 14

Decision Packages (pages 2-57 of the Supplementary Information) 15 MANDATORYGROWTHENHANCEMENT Requests22526 $ 82,907$1,174,025$1,015,132 Deferrals1124 n/a$ 552,620 $ 1,015,132 Recommendation2142 * $ 82,907$ 621,405$ 0 * * The recommended enhancements are funded by sources other than property tax revenues.

Mandatory, Growth and Enhancement Requests 16 DP Form # Business Unit NameProject/Initiative Name NET IMPACT MandatoryGrowthEnhancement Central York Fire ServicesFour Additional Fire Fighters $ 221,734 less deferred start - 4 months $ (73,911) Communications Office Web Development & Maintenance/ Accessibility $ 25, Communications OfficeGraphics Support Full Time Staff $ 18, Facility Administration Conversion of PT staff to FTE (Facility Worker) $ 42, Finance - AccountingFinancial analyst $ Information TechnologyApplications Support Analyst $ 5, Information TechnologyGIS Analyst $ 11, LegalAssociate Solicitor - Full Time $ 56, Newmarket Public LibraryYear Round Sunday Service $ 16, Newmarket Public Library Growing community outreach to meet demand $ 25, Parks Maintenance-GeneralForestry Supervisor $ 82, Parks Maintenance-GeneralNatural Heritage Co-ordinator $ 110, Parks Maintenance-GeneralRoll over of Casual Contract Staff to full time $ 26, Parks Maintenance-GeneralTrainer and Safety Compliance $ 57, Procurement ServicesContractor Performance - Staff FTE $ 73, Storm Water Management CostEconomic Policy Coordinator, Utilities $ Vehicle & Equip. MaintenanceFleet Services - Lead Hand $ 4, Various Asset maintenance and condition assessment $ - Total $ 82,907 $ 621,405 $ -

Growth & Enhancement Items Deferred 17 DP Form # Business Unit NameProject/Initiative Name NET IMPACT MandatoryGrowthEnhancement Bylaw EnforcementGPS in Enforcement Vehicles $ 2, Bylaw EnforcementPart-time Municipal Enforcement Officer $ 44, Central York Fire Services Four Additional Fire Fighters (de- annualization) 73, Central York Fire ServicesFire Prevention Inspector $ 55, Central York Fire ServicesFire Prevention Life Safety Educator $ 55, Central York Fire ServicesHuman Resource Consultant Position $ 76, Central York Fire ServicesNetwork and Communications Coordinator $ 61, Clerk'sOmbudsman Services $ 10, Clerk'sWedding Program Marketing $ 10, Clerk'sCyber Insurance $ 24, Clerk's2018 Municipal Election $ 42, Customer Service CentreCommunity Survey(s) $ 20, Customer Service KiosksCustomer Service Kiosk Associates $ 46, Development Greenspace Development Coordinator (full time) $ 22, Facility AdministrationEnergy Consultant $ 20,000

Growth & Enhancement Items Deferred (cont’d) 18 DP Form # Business Unit NameProject/Initiative Name NET IMPACT MandatoryGrowthEnhancement Facility AdministrationFacilities Maintenance Operator $ 78, Health & SafetyE-Learning $ 6, HorticultureFlowers on Fairy Lake Bridge $ 8, Human ResourcesTalent Development $ 5, Human ResourcesAttraction $ 35, Information TechnologyTown Central $ 16, Mulock Building-395 Mulock Dr.Building Maintenance Worker $ 27, Newmarket Public LibraryMonday Service $ 164, Parks Maintenance-GeneralMaintaining of Forestry Assets $ 22, Parks Maintenance-GeneralParks General Response Crew $ 145, Parks Maintenance-GeneralParks washroom cleaning $ 13, Parks Maintenance-General Casual Contract Staff to full time - (2nd position) $ 26, Parks Maintenance-General Casual Contract Staff to full time (3rd position) $ 26,008

Growth & Enhancement Items Deferred (cont’d) 19 DP Form # Business Unit NameProject/Initiative Name NET IMPACT MandatoryGrowthEnhancement Parks Maintenance-GeneralHorticulture Supplies $ 3, Parks Maintenance-GeneralOutdoor Community Rinks $ 6, Road Maintenance-Gen.Admin.Main St - Weekend Waste Collection $ 15, Road Maintenance-Gen.Admin.Roads Operator $ 57, Playground Maintenance Enhancement to playgrounds undergoing replacement $ 84, Traffic ManagementTraffic Safety - Transportation Initiatives $ 105, Winter Control-RoadsSnow Storage Truck Rental $ 93, Winter Control-RoadsContract Court Clearing $ 64,000 Total $ 552,620 $ 1,015,132

Recommended Staff Request Summary 20 DP Form#Job TitleFull-TimePart-TimeTemporary Recommended Four Additional Fire Fighters (new FTEs) Additional Part-Time staff for the Library Economic Policy Coordinator, Utilities (temp) Financial Analyst (new FTE) Graphics Support (new FTE) Applications Support Analyst (new FTE) GIS Analyst (new FTE) Associate Solicitor (Part-Time to Full-Time) Procurement Officer - Contractor Performance (new FTE) Facility Worker (Part-Time to Full-Time) Forestry Supervisor (new FTE) Natural Heritage Coordinator (new FTE) Casual Contract Staff (Part-Time to Full-Time) Trainer and Safety Compliance Officer (new FTE)1 Sub-Total The request for additional fire fighters is from the Fire Master Plan Update. All full-time and part-time staffing requests are to meet the demands of growth. For new positions, such as the temporary one for utilities, the job description and title has yet to be finalized.

Deferred Staff Request Summary 21 DP Form#Job TitleFull-TimePart-TimeTemporary Deferred Customer Service Kiosk Associates (Contract to Part-Time) Four Additional Fire Fighters (new FTEs) Fire Prevention Inspector (new FTE) Fire Prevention Life Safety Educator Human Resource Consultant (new FTE) Network and Communications Coordinator (new FTE) Building Maintenance Worker (new FTE) Facilities Maintenance Operator (new FTE) Greenspace Development Coordinator (Part-Time to Full- Time) Main St - Weekend Waste Collection staff (new FTE) Forestry staff (new PT) Parks General Response Crew (1 Operator II & a contract staff) Roads Operator (new FTE) Casual Contract Staff (Part-Time to Full-Time) Casual Contract Staff (Part-Time to Full-Time) Municipal Enforcement Officer (new PT) 1 Sub-Total 1110 TOTAL 261

3. Drivers - CPI 22

4.Drivers - 5 Year Trends 23

5-year Trend Tax-supported Revenue 24 For the period , performance has exceeded budget, but it was not until 2014 that it became apparent that revenues were not hitting their targets.

5-year Trend Tax-supported Revenue YearActualBudget Variances Extraordinary unbudgeted items Normalized variance All amounts are in $ millions

5-year Trend Tax-supported Expenditures was a $100,000 surplus before the following extraordinary items: $900,000 for insurance re-assessment, $500,000 for OMB costs, $600,000 for WSIB re-assessment.

5-year Trend Tax-supported Expenditures YearActualBudget Variance s Extraordinary unbudgeted items Normalized variance All amounts are in $ millions

5-year Trend Tax-supported Reserve Transfers 28

5-year Trend Tax-supported Reserve Transfers YearActualBudget Variances All amounts are in $ millions

30 Reserve & Reserve Funds

5. Reductions and Refinements 31

Council Tax Increase Target Council October 26, 2015 That any tax increase (Town portion), not including the Asset Replacement Fund allocation, not exceed 2.5%. 32

Starting point for 2016 budget 33 DRIVERINCREASETAX % Annualization of 2015 enhancements $ 173, Town1,021, Fire559, Library126, Optimizing revenues to reflect achievable targets 970, Total$ 2,850,

Target Achieved 34 INCREASETAX % Budget starting point$ 2,850, Reductions/refinements implemented to hit the target $ 1,524, Target achieved$ 1,326,

2.5% Target Phasing 13% of revenue adjustment to 2017 ($130,000) Street light maintenance cost reduction by $50,000 Reduce insurance transfer to reserves by $100,000 Reduce supplementary tax by $90,676 Set capital financing at $500,000 Increase provision for hiring gaps to $400,000 ($269,000) Other budget reductions of $843,119 (details in supplementary info) 35

6. Growth Revenue 36

37 New development does not generate revenue until later years, but does create growth demand on service levels (expenses) immediately.

5-year Trend Supplementary Taxes 38

5-year Trend Supplementary Taxes YEARACTUALBUDGET VARIANCES All amounts are in $ thousands ,

TOTAL TAXABLE NET GROWTH (New Assessment Less Appeal Loss) YEAR% 2015 to date Year Average (excluding 2015) Historic Growth

7. Tax-Supported Operating Budget 41

2016 Tax-Supported Operating Budget TOWNCYFSNPLTOTAL Base0.88%1.05%0.24%2.17% Mandatory0.16%0.00% 0.16% Assessment growth -1.00%0.00% -1.00% Growth items 0.89%0.28%0.00%1.17% Enhancements 0.00% 0.93%1.33%0.24%2.50% 42

Average Residential All-in Tax Increase Based on 2.5% Target $ CHANGE % CHANGE Town Portion$1,762.15$1,806.20$ % Region Portion1, , % Municipal sub-total$3,593.90$3,690.16$ % School Board Portion % TOTAL$4,472.77$4,569.03$ % Based on an average assessment of $450,072 The Region’s revised outlook projects a tax increase of 2.85% No increase in the School Board is anticipated at this time This does not include an Infrastructure Levy (ARF) 43

Outlook 44

Preliminary Outlook TAX INCREASE DRAFT BUDGET Starting point based on known drivers, subject to refinement Base budget (Town) CYFS Newmarket Public Library Phasing of 2015 enhancements Revenue adjustments Growth – expenses net of revenues 0.17 Other one-time adjustments0.43 Adjustments to capital financing(0.42) Other reductions(2.38)TBD Total - prior to refinement

9. Infrastructure Levy 46

Capital Financing Sustainability Study Hemson Consulting’s final Part 2 report can be found on the Town website at: ments/Background%20report_capital%20financin g%20sustainability%20strategy.pdf 47

Infrastructure Levy Infrastructure levies adopted by Council:  % = $ 363,773  % = $ 358,125  % = $ 505,127  2016staff recommends 1.00% = $530,729 48

Tax Increase Target COUNCIL COST TO AVERAGE RESIDENT Town portion not including ARF (Council approved) 2.50%$ Increase in Infrastructure levy – ARF (for consideration) 1.00%$ Total3.50%$

11. Capital Budget 50

2016 Capital Budget 51 FUNDINGGROWTHREPLACEMENTOTHERTOTAL DC$ 7,447,050 ARF28,500$10,844,574$ 150,00011,023,074 Reserve Funds 1,846,40090,0001,936,400 General15,55041,300443,150500,000 Other funding 3,000,0002,100,0001,145,7006,245,700 Total$12,337,500 $12,985,874$1,828,850$27,152,224

2016 Capital Funding 52 ARFGENERAL Opening reserve balances$ 3,530,379$2,246,662 Capital budget(11,023,074)(500,000) 2016 contributions15,046,430500, maintenance and condition assessments (5,650,784) 2016 increaseTBD Closing reserve balances$1,902,951$2,246,682

Priority Ranking of Capital Projects Legislative requirement, health and safety Replacement Other This ranking system, approved by Council, is used for administrative purposes only. It does not reflect Community or Council priorities which may be set from time to time. The presentation of the preliminary draft capital budget to Council provides them with the opportunity to reflect these priorities. 53

2016 Capital Budget 54 FUNDINGPRIORITY 1PRIORITY 2PRIORITY 3TOTAL DC-$ 687,100$ 6,759,950$ 7,447,050 ARF$ 162,500$ 10,600,574$ 260,000$ 11,023,074 Reserve Funds - $ 41,400$ 1,895,000$ 1,936,400 General $104,000 $ 151,100$ 244,900$ 500,000 Other funding $ 367,700 $ 2,438,000$ 3,440,000$ 6,245,700 Total$634,200 $13,918,174$12,599,850$27,152,224

Next Steps Members of Council are encouraged to contact staff with any specific questions they may have November 23 CoW if required November 30 Council if required Continue to gather feedback from the public 55

Thank You

DepartmentReduction/refinement Budget impact Notes Various Cap capital financing at $500,000 $ 222,776May need to reinstate in future years General Government Reduce supplementary property tax revenue -90,676Sustainability measure General Government Increase provision for hiring gap to $400, ,000Will require monitoring Legislative Services Reduce transfer to insurance reserve 100,000Sustainable, low risk Public Works Street light maintenance cost reduction 50,000Awaiting confirmation from Hydro Other budget reductions Benefits Provision for future benefits 102,611Provision exceeds requirement Commissioner of Corporate Office expenses 2,600Sustainable, low risk Commissioner of Corporate Wage savings 3,667Sustainable, low risk Commissioner of Community Office expenses 3,000Sustainable, low risk Commissioner of DISOffice expenses 4,414Sustainable, low risk CommunicationsAdvertising 6,666Sustainable, low risk Community Services Various program changes (net) 52,045Sustainable, low risk Customer ServiceOffice expenses 1,300Sustainable, low risk Customer ServiceReserve funding 17,500Not sustainable Budget Reductions and Refinements

DepartmentReduction/refinement Budget impact Notes Development & Infrastructure Office expenses $ 5,000Sustainable, low risk Economic DevelopmentHome show rental 4,000Sustainable, low risk Economic DevelopmentOffice expenses 11,500Sustainable, low risk EngineeringConsent application fee 35,000Sustainable, low risk EngineeringOffice expenses 8,000Sustainable, low risk EngineeringWage savings 36,013Sustainable, low risk Financial ServicesAllocation to utility budget 11,361Sustainable, low risk Financial ServicesNew fees and charges 7,500Sustainable, low risk General GovernmentCoffee 5,000Sustainable, low risk General GovernmentCorporate sundry 5,000Sustainable, low risk Human ResourcesConsulting 10,000Sustainable, low risk Human ResourcesHealth and safety rewards 10,000Sustainable, low risk Information TechnologyComputer incentive 4,060Sustainable, low risk Information TechnologyHardware 20,000Sustainable, low risk Information TechnologyIntranet costs 16,000Sustainable, low risk Information TechnologyOffice expenses 10,000Sustainable, low risk Legal ServicesConsulting 10,000Sustainable, low risk Legal ServicesOffice expenses 5,000Sustainable, low risk Legislative ServicesOffice expenses 3,200Sustainable, low risk Legislative ServicesWage savings 31,585Sustainable, low risk ProcurementAdditional revenue 5,000Sustainable, low risk ProcurementOffice expenses 8,850Sustainable, low risk Procurement/Public Works Janitorial contracts 25,000Sustainable, low risk Budget Reductions and Refinements (cont’d)

DepartmentReduction/refinement Budget impact Notes Public WorksBag tag revenue $ 20,000Subject to Council approval Public WorksGarbage contracts 35,000Sustainable, low risk Public WorksGrass cutting 29,000Sustainable, low risk Public WorksMaterials and supplies 12,000Sustainable, low risk Public WorksOffice expenses 18,000Sustainable, low risk Public WorksRepairs and maintenance 7,960Sustainable, low risk Public WorksUtilities 50,000Sustainable, low risk Public WorksVehicle lease 8,000Sustainable, low risk Recreation & CultureMaterials and supplies 19,000Sustainable, low risk Recreation & CultureOffice expenses 5,000Sustainable, low risk Recreation & CultureWage savings 90,000Sustainable, low risk Strategic InitiativesOffice expenses 1,850Sustainable, low risk Strategic InitiativesWage savings 40,973Sustainable, low risk Tax CancellationsVacancy rebates 10,000Sustainable, low risk VariousBooks 5,000Sustainable, low risk VariousOffice expenses 7,427Sustainable, low risk VariousTraining 20,000Sustainable, low risk VariousWage provision-16,963Sustainable, low risk Total: $ 843,119 Budget Reductions and Refinements (cont’d)