1. 1 2011 Budget Listening Session February 17, 2011 Presenters: Bob Shelton, Chief Administrative Officer (CAO) Mike Mayes, Director, Financial Services/Treasurer

2. 2011 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. 2

3. 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 3

4. 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

5. 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

6. 2011 Drivers & Challenges 6 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 6

7. 2010 Tax Comparators MeasureNewmarket Region 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 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% 7

8. Breakdown of Tax Increase Under Consideration (Preliminary First Draft) CYFS budget has not been reviewed by JCC. Library budget Growth and Enhancement items have been reviewed by the Board. Town to be advised and will update Library budget accordingly. 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% 8

9. 2011 Residential Property Tax Under Consideration Regional Municipality of York is projecting a tax increase of 2.5 to 2.7%. 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 2.50%. 20102011$ Change% Change Town $ 1,289.90 $ 1,365.87 $ 75.975.89% Region 1,565.50 1,607.77 42.272.70% Municipal 2,855.39 2,973.64 118.244.14% School Board 790.92 -0.00% Total $ 3,646.31 $ 3,764.56 $ 118.243.24% 9

10. Budget Challenge Town $ increase CYFS $ increase Library $ increase Total $ increase Tax % Increase Increase from 2010 Base 858,803 661,656 273,049 1,793,508 4.53% Gapping reduction 150,000 0.38% Increase in winter control 394,434 1.00% Hydro dividend decrease 137,500 0.35% OMERS221,31670,59612,000303,9120.77% Dispatch service35,096 0.09% Additional firefighters 1,069,389 2.70% CUSP 361,978 0.91% 10

11. Budget Challenge (cont.) Town $ CYFS $ Library $ Total $ Tax Increase % Other growth requests 809,198 154,223 115,6351,079,056 2.72% Restoring level of Capital Financing 296,000 (3,026) (7,678) 285,296 0.72% Planned Increase in ARF contribution 631,780 143,366 30,586 805,732 2.03% Monday service 119,406 0.30% Other Enhancement requests 205,809 41,585 (1,400) 245,994 0.62% Subtotal 4,066,818 2,172,885 541,5986,781,301 17.11% 11

12. 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%) 12

13. 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. 13

14. 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%) 14

15. Further Budget Reductions TownCYFSLibraryTotal Tax Increase Subtotal after reductions $1,374,201$1,755,698 $306,557 $3, 436,4568.67% Defer capital financing increase ($296,000)($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$2,334,724 5.89% Tax Increase1.13%4.07%0.70%5.89% 15

16. 2011 Budget Meeting and Events Schedule DATEACTIVITY February 17Budget Listening Session, Municipal Offices, 7:30 to 9 PM March 4Detailed 2011 Budget information available to the public online at www.newmarket.ca www.newmarket.ca March 7Special Committee of the Whole Meeting: Operating & Capital Budget, Municipal Offices, 1:30 PM 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 16

17. Thank You. We look forward to hearing your comments… 17