1. Town of Tillsonburg
2012 Draft Budget
November 3, 2011

2. 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%

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 2012 Draft Budget Summary
Management requests direction from Council on the next steps