1. 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

2. 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

3. 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

4. 2016 Budget Key Milestones Q1Q2Q3Q4 2015 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

5. 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. 2014 - 2018 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 2014-18 for more details 5

6. Community Engagement and Communications 6

7. 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

8. 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. 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.

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

11. 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 8.2017+ Outlook 9.Infrastructure Levy 10.Utility Budgets 11.Capital Budget 11

12. 1. Schedule 12

13. 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

14. 2. Decision Packages 14

15. 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.

16. Mandatory, Growth and Enhancement Requests 16 DP Form # Business Unit NameProject/Initiative Name NET IMPACT MandatoryGrowthEnhancement 2016 - 3Central York Fire ServicesFour Additional Fire Fighters $ 221,734 less deferred start - 4 months $ (73,911) 2016 - 13Communications Office Web Development & Maintenance/ Accessibility $ 25,000 2016 - 14Communications OfficeGraphics Support Full Time Staff $ 18,602 2016 - 29Facility Administration Conversion of PT staff to FTE (Facility Worker) $ 42,120 2016 - 12Finance - AccountingFinancial analyst $ - 2016 - 16Information TechnologyApplications Support Analyst $ 5,268 2016 - 17Information TechnologyGIS Analyst $ 11,347 2016 - 19LegalAssociate Solicitor - Full Time $ 56,573 2016 - 10Newmarket Public LibraryYear Round Sunday Service $ 16,682 2016 - 9Newmarket Public Library Growing community outreach to meet demand $ 25,732 2016 - 32Parks Maintenance-GeneralForestry Supervisor $ 82,570 2016 - 37Parks Maintenance-GeneralNatural Heritage Co-ordinator $ 110,984 2016 - 42Parks Maintenance-GeneralRoll over of Casual Contract Staff to full time $ 26,008 2016 - 46Parks Maintenance-GeneralTrainer and Safety Compliance $ 57,907 2016 - 25Procurement ServicesContractor Performance - Staff FTE $ 73,600 2016 - 11Storm Water Management CostEconomic Policy Coordinator, Utilities $ - 2016 - 30Vehicle & Equip. MaintenanceFleet Services - Lead Hand $ 4,096 2016 - 53Various Asset maintenance and condition assessment $ - Total $ 82,907 $ 621,405 $ -

17. Growth & Enhancement Items Deferred 17 DP Form # Business Unit NameProject/Initiative Name NET IMPACT MandatoryGrowthEnhancement 2016 - 24Bylaw EnforcementGPS in Enforcement Vehicles $ 2,108 2016 - 52Bylaw EnforcementPart-time Municipal Enforcement Officer $ 44,053 2016 - 3Central York Fire Services Four Additional Fire Fighters (de- annualization) 73,911 2016 - 4Central York Fire ServicesFire Prevention Inspector $ 55,433 2016 - 5Central York Fire ServicesFire Prevention Life Safety Educator $ 55,433 2016 - 6Central York Fire ServicesHuman Resource Consultant Position $ 76,691 2016 - 7Central York Fire ServicesNetwork and Communications Coordinator $ 61,353 2016 - 22Clerk'sOmbudsman Services $ 10,000 2016 - 23Clerk'sWedding Program Marketing $ 10,000 2016 - 20Clerk'sCyber Insurance $ 24,357 2016 - 21Clerk's2018 Municipal Election $ 42,000 2016 - 1Customer Service CentreCommunity Survey(s) $ 20,000 2016 - 2Customer Service KiosksCustomer Service Kiosk Associates $ 46,045 2016 - 33Development Greenspace Development Coordinator (full time) $ 22,800 2016 - 27Facility AdministrationEnergy Consultant $ 20,000

18. Growth & Enhancement Items Deferred (cont’d) 18 DP Form # Business Unit NameProject/Initiative Name NET IMPACT MandatoryGrowthEnhancement 2016 - 28Facility AdministrationFacilities Maintenance Operator $ 78,211 2016 - 51Health & SafetyE-Learning $ 6,700 2016 - 31HorticultureFlowers on Fairy Lake Bridge $ 8,700 2016 - 49Human ResourcesTalent Development $ 5,000 2016 - 50Human ResourcesAttraction $ 35,000 2016 - 18Information TechnologyTown Central $ 16,000 2016 - 15Mulock Building-395 Mulock Dr.Building Maintenance Worker $ 27,668 2016 - 8Newmarket Public LibraryMonday Service $ 164,589 2016 - 36Parks Maintenance-GeneralMaintaining of Forestry Assets $ 22,292 2016 - 38Parks Maintenance-GeneralParks General Response Crew $ 145,160 2016 - 39Parks Maintenance-GeneralParks washroom cleaning $ 13,000 2016 - 43Parks Maintenance-General Casual Contract Staff to full time - (2nd position) $ 26,008 2016 - 44Parks Maintenance-General Casual Contract Staff to full time (3rd position) $ 26,008

19. Growth & Enhancement Items Deferred (cont’d) 19 DP Form # Business Unit NameProject/Initiative Name NET IMPACT MandatoryGrowthEnhancement 2016 - 34Parks Maintenance-GeneralHorticulture Supplies $ 3,600 2016 - 48Parks Maintenance-GeneralOutdoor Community Rinks $ 6,500 2016 - 35Road Maintenance-Gen.Admin.Main St - Weekend Waste Collection $ 15,360 2016 - 41Road Maintenance-Gen.Admin.Roads Operator $ 57,171 2016 - 40Playground Maintenance Enhancement to playgrounds undergoing replacement $ 84,600 2016 - 47Traffic ManagementTraffic Safety - Transportation Initiatives $ 105,000 2016 - 45Winter Control-RoadsSnow Storage Truck Rental $ 93,000 2016 - 26Winter Control-RoadsContract Court Clearing $ 64,000 Total $ 552,620 $ 1,015,132

20. Recommended Staff Request Summary 20 DP Form#Job TitleFull-TimePart-TimeTemporary Recommended 2016 - 3Four Additional Fire Fighters (new FTEs)4 2016 - 9Additional Part-Time staff for the Library 1 2016 - 11Economic Policy Coordinator, Utilities (temp) 1 2016 - 12Financial Analyst (new FTE)1 2016 - 14Graphics Support (new FTE)1 2016 - 16Applications Support Analyst (new FTE)1 2016 - 17GIS Analyst (new FTE)1 2016 - 19Associate Solicitor (Part-Time to Full-Time)1 2016 - 25Procurement Officer - Contractor Performance (new FTE)1 2016 - 29Facility Worker (Part-Time to Full-Time)1 2016 - 32Forestry Supervisor (new FTE)1 2016 - 37Natural Heritage Coordinator (new FTE)1 2016 - 42Casual Contract Staff (Part-Time to Full-Time)1 2016 - 46Trainer and Safety Compliance Officer (new FTE)1 Sub-Total 15-21 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.

21. Deferred Staff Request Summary 21 DP Form#Job TitleFull-TimePart-TimeTemporary Deferred 2016 - 2Customer Service Kiosk Associates (Contract to Part-Time) 0 2016 - 3Four Additional Fire Fighters (new FTEs) 2016 - 4Fire Prevention Inspector (new FTE)1 2016 - 5Fire Prevention Life Safety Educator1 2016 - 6Human Resource Consultant (new FTE)1 2016 - 7Network and Communications Coordinator (new FTE)1 2016 - 15Building Maintenance Worker (new FTE)1 2016 - 28Facilities Maintenance Operator (new FTE)1 2016 - 33 Greenspace Development Coordinator (Part-Time to Full- Time)1 2016 - 35Main St - Weekend Waste Collection staff (new FTE) 1 2016 - 36Forestry staff (new PT) 1 2016 - 38 Parks General Response Crew (1 Operator II & a contract staff)11 2016 - 41Roads Operator (new FTE)1 2016 - 43Casual Contract Staff (Part-Time to Full-Time)1 2016 - 44Casual Contract Staff (Part-Time to Full-Time)1 2016 - 52Municipal Enforcement Officer (new PT) 1 Sub-Total 1110 TOTAL 261

22. 3. Drivers - CPI 22

23. 4.Drivers - 5 Year Trends 23

24. 5-year Trend Tax-supported Revenue 24 For the period 2010-2013, performance has exceeded budget, but it was not until 2014 that it became apparent that revenues were not hitting their targets.

25. 5-year Trend Tax-supported Revenue YearActualBudget Variances Extraordinary unbudgeted items Normalized variance All amounts are in $ millions 201053.1350.992.141.750.39 201155.5054.830.670.360.31 201257.5757.490.08 0.00 201360.9160.000.911.33-0.42 201461.7062.62-0.920.36-1.28 25

26. 5-year Trend Tax-supported Expenditures 26 2014 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.

27. 5-year Trend Tax-supported Expenditures YearActualBudget Variance s Extraordinary unbudgeted items Normalized variance All amounts are in $ millions 201035.9036.340.440.000.44 201137.3737.980.610.000.61 201239.2640.671.410.001.41 201341.7542.140.390.000.39 201445.7143.80-1.912.010.10 27

28. 5-year Trend Tax-supported Reserve Transfers 28

29. 5-year Trend Tax-supported Reserve Transfers YearActualBudget Variances All amounts are in $ millions 20107.164.562.60 20117.135.731.40 20126.595.371.22 20137.065.761.30 20143.235.75-2.52 29

30. 30 Reserve & Reserve Funds

31. 5. Reductions and Refinements 31

32. 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

33. Starting point for 2016 budget 33 DRIVERINCREASETAX % Annualization of 2015 enhancements $ 173,0280.33 Town1,021,5171.92 Fire559,5361.05 Library126,4210.24 Optimizing revenues to reflect achievable targets 970,0001.83 Total$ 2,850,5025.37

34. Target Achieved 34 INCREASETAX % Budget starting point$ 2,850,5025.37 Reductions/refinements implemented to hit the target $ 1,524,2192.87 Target achieved$ 1,326,2832.50

35. 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

36. 6. Growth Revenue 36

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

38. 5-year Trend Supplementary Taxes 38

39. 5-year Trend Supplementary Taxes YEARACTUALBUDGET VARIANCES All amounts are in $ thousands 20109760 2011686323363 201240232379 20131,224391833 2014752391361 39

40. TOTAL TAXABLE NET GROWTH (New Assessment Less Appeal Loss) YEAR% 2015 to date0.4 20141.6 20132.4 20121.5 20111.8 20102.0 20091.9 20082.7 20071.4 20062.7 9 Year Average (excluding 2015) 2.0 40 Historic Growth

41. 7. Tax-Supported Operating Budget 41

42. 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

43. Average Residential All-in Tax Increase Based on 2.5% Target 20152016 $ CHANGE % CHANGE Town Portion$1,762.15$1,806.20$ 44.052.50% Region Portion1,831.751,883.9652.212.85% Municipal sub-total$3,593.90$3,690.16$96.262.68% School Board Portion878.87 0.000.00% TOTAL$4,472.77$4,569.03$96.262.15% 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

44. 8. 2017+ Outlook 44

45. 2017-19 Preliminary Outlook TAX INCREASE2016201720182019 DRAFT BUDGET Starting point based on known drivers, subject to refinement Base budget (Town)1.491.50 CYFS1.050.930.80 Newmarket Public Library0.240.15 Phasing of 2015 enhancements0.330.270.26 Revenue adjustments1.590.23 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 refinement2.503.082.712.45 45

46. 9. Infrastructure Levy 46

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

48. Infrastructure Levy Infrastructure levies adopted by Council:  2013 0.80% = $ 363,773  2014 0.74% = $ 358,125  2015 1.00% = $ 505,127  2016staff recommends 1.00% = $530,729 48

49. Tax Increase Target COUNCIL COST TO AVERAGE RESIDENT Town portion not including ARF (Council approved) 2.50%$ 44.05 Increase in Infrastructure levy – ARF (for consideration) 1.00%$ 17.63 Total3.50%$ 61.68 49

50. 11. Capital Budget 50

51. 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

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

53. 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

54. 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

55. 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

56. Thank You

57. 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 $400,000 269,000Will 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

58. 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)

59. 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)