HomeMy WebLinkAboutCST 14-11l_Lfy Oo
PICKERING
94
Report To
Council
Report Number: CST 14-11
Date: March 21, 2011
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: 2011 Current and Capital Budgets
Recommendation:
That Report CST 14-11 of the Director, Corporate Services & Treasurer be
approved;
a) That the 2011 Current Budget expenditure for personnel expenditures,
consisting of salaries and wages (Account 1100), overtime (Account
1200) and employer contributions (Account 1400), in the total amount of
$42,867,211 be approved;
b) That the 2011 Gross Current Budget expenditures for City purposes in the
amount of $34,356,589 (excludes personnel expenditures and includes
capital expenditures from currerit revenues in the amount of $1,163,395);
less estimated current operating revenues of $28,957,742 and transfer
from the Rate Stabilization Reserve of $2,817,338 be approved;
c) That the total final City levy under a) and b) above plus an additional
$200,000 for Seaton Professional fees total final levy of $45,648,720
which is approximately a 3.56% increase over 2010 be approved;
2. a) That the 2011 Capital Budget for the City of Pickering with a Gross
Expenditure of $24,425,825 be adopted as presented and amended (that
includes the capital budget changes approved by Council at the Executive
Committee meeting of March 10, 2011;
b) That the following capital financing sources be approved as presented in
the amended 2011 Capital Budget:
Report CST 14-11 March 21, 2011
Subject: 2011 Current and Capital Budgets Page 2
95
Transfer from Current Fund to Capital Fund $1,163,395
Transfers from Reserves:
- Capital Equip Res (7000) 184,000
- Rate Stabilization Res (7021) 18,072
- Don Beer Arena (7033) 20,000
- Rec Complex Core Surcharge (7034) 69,500
- Rec Complex Pool Reserve (7035) 80,000
- Vehicle Replacement Res (7040)
130,000
- Easement Settlement Res (7041)
240,000
- Move Ontario Reserve (7043)
14,533
- Land Purchase Reserve (7047)
200,000
Transfers from Reserve Funds
- Development Charges (7610 & 7611) 1,622,870
- Parkland Development (7502) 511,000
- Federal Gas Tax Funds (7505) 1,140,000
- City Share Dev. Charges Projects (7022) 697,455
- Third Party Contribution (7501) 200,000
Debt - 5 yr
1,240,000
Debt - 10 yr
2,290,000
Debt - 15 yr
10,192,000
Internal Loan - 5 yr
100;000
Provincial Grant - Invest in Ontario
323,000
York Region Funding Agreement
3,000,000
Reimbursement Province of Ontario
900,000
Donations (1592) 90,000
TOTAL $24,425,825
c) That total external.debt financing of $13,722,000 for the projects identified
in the 2011 Capital Budget, and as indicated in this report, in the amount
of $1,240,000 for a period not to exceed 5 years, $2,290,000 for a period
not to exceed 10 years and $10,192,000 for a period not to exceed 15
years be approved;
Report CST 14-11
March 21, 2011
Subject: 2011 Current and Capital Budgets Page 3
d) That the internal loan in the amount of $100,000 be undertaken at the
discretion of the Director, Corporate Services & Treasurer;
e) That projects identified in the 2011 Capital Budget as being financed
through the issuance of debt be subject to additional, specific approval of
the expenditure and the financing by Council;
fl That any debt repayment, interest or financing provisions contained in the
annual Current Operating Budget not used in the current year's payments
requirements may, at the discretion of the Director, Corporate Services &
Treasurer, be used to apply towards additional principal~ repayment,
outstanding loan or debt charges or to reduce debt, internal loans or any
other amounts to be financed;
g) That all Capital expenditures or portions thereof, approved in the 2011
Capital budgets to be financed through the issuance of debt, may, at the
discretion of the Director, Corporate Services & Treasurer, be financed
through internal loans, dealer financing, current or capital funds or a
combination thereof;
h) That the Director, Corporate Services & Treasurer be authorized to make
draws from Reserve and Reserve Funds for projects included in the
approved capital budget up to the amount approved;
i) That the Director, Corporate Services & Treasurer be authorized to, at his
discretion, apply any excess funds raised from completed projects
financed by internal loans to first repay the original internal loans, and
secondly to reduce or replace budgeted internal loans or debts;
j) That the Director, Corporate Services & Treasurer be authorized at his
discretion to apply any excess funds through the issuance of debentures
as provided for under Section 413 of the Municipal Act, 2001 as amended;
3. That Council approve the cancellation of the previous approvals for the East
Shore Parking Lot.as identified below and return the unspent funds to source:
Year Account No.
2005 5701.0503.6181
2006 5701.0602.6181
2009 5701.0904.6181
4. That Council approve the cancellation of the 2010 capital project (Account
5320.1019) for the Liverpool Road Reconstruction (Annland Street to Ilona
Place) and return the unspent funds to source; .
Report CST 14-11
March 21, 2011
Subject: 2011 Current and Capital Budgets Page 4
97
5. That the funding for the Operations Centre Environmental Assessment as
approved in the 2009 Capital Budget be revised from Invest in Ontario Grant to
the following:
Development Charges $34,435
Invest in Ontario Grant 65,565
$100,000
6. That the Director, Corporate Services & Treasurer be authorized to transfer:
a) Any surplus current operating funds at year-end in excess of
approximately $125,000 in the following ratio: 30% to the Rate
Stabilization Reserve and 70% to the City Share DC Projects Reserve;
b) Any funds necessary from the Rate Stabilization Reserve in order to
ensure that the Current Budget results in a year end surplus of no less
than $125,000; c) If Veridian does not declare a supplemental dividend in the amount of
$475,650 , the corresponding dollar short fall be offset by an increase in
the draw from the Economic Stabilization Reserve;
7. That the Director, Corporate Services & Treasurer be authorized to make any
changes or undertake any actions necessary, in order to ensure that the budget
plan accommodates any reallocation of 2011 current operating expenditures and
revenues resulting from any reorganization and any adjustment in taxes or tax
rates due to Provincial and Regional tax policy changes;
8. That any under expenditures from projects funded from Federal or Provincial
Grants may be used to fund over expenditures for approved projects funded from
the same source(s); 9. That the Director, Corporate Services & Treasurer be authorized at his discretion
to close any prior year's capital project accounts, and to first apply any excess
funding to any over expenditure in other capital accounts and secondly, to
transfer any remaining excess funding back to the original source of the funds;
10. That the Director, Corporate Services & Treasurer be authorized to:
a) Undertake transactions in the spot or forward (12 months or less) currency
markets in order to effect United States dollar denominated expenditures
in the Current or Capital Budgets;
b) Enter into leases or rental agreements for the provision of vehicles or
equipment required for temporary use during periods of equipment
breakdown or repair or during periods of increased need (eg. Inclement
weather); ,
Report CST 14-11
Subject: 2011 Current and Capital Budgets
Page 5
98
c) Restate the 2011 Current Operating Budgets, Accounts 1100 (Salaries &
Wages), 1200 (Overtime) and 1400 (Employer Contributions), to reflect
any CUPE or Fire Services negotiated settlement;
11. That the Mayor and Clerk be authorized to enter into the following leases as
provided for in the 2011 Current Budget:
a) Lease for Bentley-Gibson House (located on 1688 Highway 7 in Brougham)
for a period of three years with an option to renew for two more years; and,
b) Lease for Unit 4- 935 Dillingham Road for a period of three years with an
option to renew for one more year;
12. That Council pass the attached General Municipal Fees and Charges By-law
which provides for the fees and charges that are incorporated into the 2011
Current Budget;
13. That the Director, Corporate Services & Treasurer be authorized to adjust, where
appropriate, the per kilometre travel expense reimbursement rate during the year
in order to maintain a reasonable level of reimbursement with any increase in
cost being met from under expenditures in other accounts; 14. That Council approve the reallocation of the following accounts to facilitate
reporting requirements to the appropriate cost centre as presented below:
a) Corporate website expenditure of $130,000 be allocated to account
2192.6100.0000 (Website Support);
b) City DC share expenditure of $100,000 be allocated to account
2891.0000.0000 (City Share of DC Projects);
c) Hospital MRI grant funding in the amount of $100,000 to be allocated to
account 2195.2570.0000 (Social & Charitable Grants);
d) New financial suite expenditure of $175,000 be allocated to account
2127.2392.0000 (consulting) and any under spending in this account be
transferred to the Financial Systems Reserve; and,
e) Seaton Professional fees expenditure of $200,000 be allocated to account
2126.2392.0000 (General Government Purchased Services);
15. As provided in the 2011 capital budget, that Council approve the Mattamy (Brock
Road) Limited sanitary sewer project (5320.1116) for a total cost of $130,000 as
part of the Mattamy Servicing of Draft Plan SP2008-01 (subdivision agreernent to
be amended);
March 21, 2011
Report CST 14-11
Subject: 2011 Current and Capital Budgets
March 21, 2011
Page 6
16. That Council approve the continuing engagement of the firm of Watson and
Associates to complete the following projects: City Development Charge Study,
Seaton Development Charge Study, City-wide Seaton Development Charge
Study, Seaton Financial Impact Study and any other studies related to Seaton
and or Duffin Heights;
17. That Council approve the continuing engagement of the City's telephone services
provider Caltech to upgrade the telephone system software and voicemail
system and any other related software and hardware equipmenfi;
18. That the Director, Corporate Services & Treasurer be authorized to initiate any
assessment appeals necessary to protect the assessment base of the City; and,
19. That the appropriate staff of the City of Pickering be given authority to give effect
thereto.
Executive Summary: This report contains a summary of the 2011 Current and
Capital Budgets and a discussion of the Recommendations contained in this report.
Financial Implications: At the Executive Committee meeting on March 10, 2011,
the following changes were made to the draft Current and Capital Budgets resulting in a
decrease of the budget levy from 4.75% to 3.56%:
March 10, 2011 as presented 4.75%
Less:
Decrease in Reserve Draw (1.13)
Decrease in MRI Grant (0.05)
Revised 2011 Levy Budget 3.56%
Average Residential Increase
After Reassessment 2.99%
99
This increase when combined with the Region and the School boards increase, after
reassessment, results in a total average residential increase of 2.15%.
Report CST 14-11
Subject: 2011 Current and Capital Budgets
Page 7
1 ~
Table One
Budget and Tax Levy Increases
Budget Levy Average Residential
Increase Increase *
City 3.56% 2.99%
Region 2.92% 2.42%
School Board 0 0
Increase on Total Tax Bill 2.58% 2.15%
* The information presented in this column shows the budgetary increase adjusted for
the impact of reassessment.
The above excludes any potential Provincial Tax Policy changes.
In addition to the above changes, Council also reviewed the current and capital budget
on a"line-by-line" basis resulting in the following changes:
Current Budget Changes
General Government Section Grants:
Feed the Need Durham $5,000
Current Budget Reductions
General Government Section Grants:
Ribfest , (5,000)
Tapp-C (3,128)
Hati Relief (1,000)
Regional Councillor J. O'ConnelPs budget (5,300)
City Councillor D. Pickle's budget (7,000)
Council Support - Subscriptions (2113.0001.2220) (500)
Total Net Current Budget Changes 16 928
Capital Budget Changes
East Shore Parking Lot Reconstruction
Project's scope was reduced
Gross Cost $275,000
Project Funding
Easement Settlement Res (240,000)
Rate Stabilization Res (18,072)
Current Budget Changes - March 10t" Meeting - Property Taxes (16,928)
275 000
The Net Current budget reduction of $16,928 was applied to help
fund the East Shore Parkin Lot Reconstruction.
March 21, 2011
Report CST 14-11
March 21, 2011
Subject: 2011 Current and Capitai Budgets Page 8
101
The 2011 Current and Capital Budgets, if adopted as amended, will result in a budget
levy increase of 3.56% (City Share Only) over last year. The residential property class
will see an average 2.99% increase on the City portion of their property taxes, after
adjusting for reassessment.
Sustainability Implications: The 2011 Current and Capital Budgets have
emphasized the need for financial sustainability by reducing the Rate Stabilization Draw
and by increasing the annual contribution to the City Share DC Reserve Fund.
Background: The Recommendations put forth are those necessary to adopt and
provide authority and direction for the 2011 Current and Capital Budgets for the City of
Pickering.
2011 Current Budget
As Members of Council may recall, last spring staff presented a proposed 2011
budgetary increase of approximately 7.9 to 8.9% based on information available at that
time and to maintain City service levels at their current level.
At the March 10th Executive (Budget) Committee meeting, Council was presented with a
proposed tax levy increase of 4.75%. Included in the 4.75% levy were four important
corporate priorities which are: financial suite; City website; increase in City share DC
project funding; and the hospital MRI donation. These priorities were approved at the
March 10t" meeting with only a slight change regarding the timing of the hospital MRI
contribution. The MRI funding is now going to be allocated over five years in contrast to
the proposed four year plan. In addition, the financial strategy to decrease the use of
one-time funds was reduced by $500,000. The net result of the above changes is a
revised budget levy increase of 3.56%. The 3.56% budget levy increase would be the
second lowest increase during the last ten years. The 3.56% levy compares favourably
to other municipalities when you consider that Pickering has not had the advantage of
strong assessment growth for many years like its Lakeshore Neighbours. Tax Increase Summary
As discussed at the March 10, 2011 Executive Committee meeting, the residential
property class experienced on average a property tax decrease due to reassessment.
In other words, the average residential assessment related increase due to
reassessment of 2.94% was below the Pickering average of 3.51 % resulting in a shift of
property taxes to the other property classes. As a result of the 2011 Council adopted
budget, residents will see an average 2.99% increase on the City portion of their
property taxes (after reassessment).
Pickering's share of the total tax bill is 27.5% (based on 2010 tax rates). The 3.56% tax
increase, translates into an increase of 0.98% or slightly less than one percent on the
Report CST 14-11
March 21, 2011
D~,Subject: 2011 Current and Capital Budgets Page 9
G
total tax biil. When you add the Region's tax increase for Pickering of 2.92% and the
School Boards estimated 0% increase, the total increase for the residential ratepayer
will be approximately 2.58%, which is slightly above the rate of inflation. For the
average residential taxpayer, after taking into consideration the impact of
reassessment, the total tax increase would be 2.15%.
Table Two below provides a summary of the financial impact of the proposed 2011
budget levy increase based on the various types of residential structures.
Table Two
Financial Impact of Budge# Increase
City Share Only
2010
2011
Inc.
Cost Per Week
Single Family Home
$1,286
$1,325
$39
$0.74
Avg. Assess. ($350,970)
Semi Detached
$902
$929
$27
$0.52
Av . Assess. $246,170
Res. Condominium
$736
$758
$22
$0.42
Av . Assess. $200,850
Major Financial Challenge - Reduce the Use of One Time Funds
The most critical financial challenge facing the City today is to reduce its use of one-
time funds during the present term of Council. The 2010 tax levy of 3.90% was
achieved by using $3.3 million of one-time funds. In other words, without the use of
these funds, the 2010 tax levy would have been 11.7%. The good news is that the
2010 budget did not increase its draw from the Rate Stabilization Reserve. Financial
management is one of the City's five Corporate Priorities. Starting iri 2011, the use of
"one-time funds" to artificially lower the budget levy increase has been reduced by,
$500,000. Council's goal should be to eliminate the use of such "one-time" funds by the
end of its present term.
Report CST 14-11
Subject: 2011 Current and Capital Budgets
Page 10
03
Use of One Time Funds
For the Years 2007 To Projected 2013
$3,400,000
$3,000,000
$2,600,000
$2,200,000
$1,800,000
$1,400,000
$1,000,000
$600,000
$200,000
If Council follows the above plan, approximately $5.4 million will be withdrawn over the
next four years.
2011 Current Budget
2011 Budget Impact Seaton Development
Recent actions have required that planning and development initiatives respecting
Seaton be accelerated, partly as set out in the Settlement Agreement approved by
Council in February of this year.
The 2011 current budget includes the fiollowing direct costs related to this agreement:
Exaenditures
Four staff (salaries & benefits) $193,000
Consulting 556,000
Sub Total 749,000
Transfer to Seaton Development
Review Reserve 1,384,000
Total Expenses $2,133,000
Revenues
Funding from Seaton
Application Fees (2,133,000)
March 21, 2011
Net Cost $0.0
2007 2008 2009 2010 2011 2012 2013
1 0 Actuals B Budget ■ Forecast
Report CST 14-11
Subject: 2011 Current and Capital Budgets
Page 11
The remaining Seaton application revenue will be transferred to the Seaton
Development Review Reserve and in future years, these dollars will be used to offset
staffing and consulting costs related to Seaton.
Recommendation 11 a) - Lease of Bentley - Gibson House
As noted in the CAO's memo of January 20, 2011, the Greater Toronto Airport Authority
(GTAA) vacated their offices at the Bentley-Gibson House. As growth is imminent, and
given that the Civic Complex is at full capacity, with little prospects to accommodate our
workspace needs, it is prudent that the City secure this space for the next three years.
Recommendation 11 a) authorizes the Mayor and Clerk to enter into a three year lease
with an option for renewal of two more years at an attractive rate. The cost to lease for
one year (approximately $27,000) and furnish the Bentley-Gibson House is estimated at
$75,000 and has been included in the Current Budget.
Recommendation 11 b) - Lease of Unit 4- 935 Dillingham Road
The Parks current budget includes $50,000 for lease costs associated with this space.
By leasing this space, the City snow removal and park equipment will be located closer
to their work areas resulting in savings in gas and "wear and tear" on the equipment.
Leasing this space will also save considerable travel time especially during the
reconstruction of the Brock/Rossland Road areas.
Recommendation 11 b) provides the legal authority for the Mayor and Clerk to enter into
the lease agreement. .
Veridian
The breakdown and or explanation of Veridian revenue is presented below.
2010
EST.
ACTUAL
Dividend (38.5%) 1,886,000
Supplemental
Dividend * 254,381
Interest on Prom
notes 1,834,813
$3,975,194
2010
BUDGET
2,009,000
1,590,250
$3,599,250
INCREASE F 2011
(DECREASE)
(1,470)
475,650
(163,400)
$310,780
March 21, 2011
BUDGET
2,007,530
475,650
1,426,850
$3,910,030
Report CST 14-11
March 21, 2011
Subject: 2011 Current and Capital Budgets Page 12
1. 05
Veridian staff have provided City staff with a revenue forecast this year that includes a
supplemental dividend. If approved the increase in income from Veridian would be
approximately $311,000 which has been included as revenue in the 2011 Budget.
Tangible Capital Asset Reporting & Impact on Current Budget
Starting with the 2009 budget, the City commenced implementing the requirements of
tangible capital asset reporting. One of the first changes was to move those capital
expenditures below the $5,000 dollar threshold to the current budget. The 2011 budget
has been changed to comply with the Council approved Tangible Capital Asset
Reporting requirements. The most significant change has been to move major repairs
and minor equipment purchases from the capital budget to the current budget. The
estimated dollar transfer from capital to current is approximately $490,000. These
expenditures are being funded from property taxes.
2011 User Fees & Charges Schedule
Every year, the City increases its user fees, mainly for various recreational and cultural
programs to partially reflect the cost of delivering these programs. Council passed
Resolution #149/03 confirming the City's existing user fees through by-law. This By-law
was updated as part of each year's budget process. A number of Planning &
Development fees have been increased since 2010. Planning application fees have
been increased to reflect consumer price index increases since 2006 when the fees
were last updated. In addition, major official plan amendment and zoning by-law
amendment fees have been further increased to better reflect the full cost of processing
these applications and to bring them in line with other GTA municipalities. Building fee
unit rates have been increased to reflect annual cost of living increases. Other fees
have been introduced to address industry trends and their associated costs.
2011 Budget Based on Estimates
As in previous years, the City's budget is developed based on estimates or best known
information for items such as utilities and benefits. For the 2011 budget, an estimate
was made regarding fire fighter salaries due to the fact the fire contract expired on
December 31, 2009. To put another way, the City is now estimating what the fire
contract settlement will be for the years 2010 and 2011. Every year the contract is not
settled, there is a risk of having insufficient funds to meet the negotiated settlement.
The CUPE contract will expire on March 31St of this year and a provision has been
included in the budget.
Debt Financing of Capital Projects
This year's capital budget utilizes $13.72 million of external debt. As of December 31,
2010, the City has approved $21.84 million in debt financed projects and this amount
will increase to $35.56 million as a result of the 2011 capital budget. Internal loans of
$100,000 are required and are reflected in the 2011 budget. (The internal loan project
is for the noise attenuation wall project). This year, the City will pay $3.73 million in
Report CST 14-11
March 21, 2011
Subject: 2011 Current and Capital Budgets Page 13
interest and principle payments to service the City's debt. The $3.7 million is equivalent
to 8.45% of the budgetary #ax levy. In other words, if Pickering had no outstanding
debt, there would be 8.45% more flexibility.
Table Three
External Debt and Internal Financing of Capital Projects
City of Pickering
5, 10 and 15 Year Debt Financing
2011 Ca ital Bud et
Capital Project Code
Debt - 5
Years
Description
5311.1103
$150,000
Sidewalk - Snow Clearin Plow and Blower
5320.1102
210,000
Four Ton Dum Truck
5320.1109
175,000
Sheppard Ave - Completion 2008 Works
5320.1117
200,000
Valley Farm Rd. - Steel Beam
Guiderail
5719.1103
200,000
Claremont Communtiy Centre -
Parkin Lot
5410.1102
175,000
Brownin Ave. - Storm Sewer Re lac.
5780.1104
130,000
Garba e Packer
Total Five Year Debt
$1,240,000
Capital Project Code
Debt - 10
Years $
Description
5410.1101
$200,000
WestShore - Flood Redem tion
5700.1103
550,000
Civic Com lex Walkwa
5701.1101
110,000
Senior Centre - Roof Re lacement
5701.1102
150,000
East Shore Comm Centre -
Reinforcement
5320:1118
330,000
Westshore Blvd. - Road
Reconstruction
5320.1102
950,000
Liverpool Rd. - Underground
Conversion
Total Ten Year Debt
$2,290,000
Capital Project Code
Debt -15
Years $
Description
5203.1101
$850,000
ORC Lands-Duffin Hei hts
5315.1101
8,000,000
Land for New O erations Centre
5321.1101
807,000
Third Conc. Rd. - Urbanization
5321.1106
535,000
Brock Rd. (Both Sides) -
CP Under ass
Total Fifteen Year Debt
$10,192,000
Total Debt Financed Projects
13 722 000
Report CST 14-11
March 21, 2011
Subject: 2011 Current and Capital Budgets Page 14
107
2011 Tax Rates
As has been the case for the last few years, the 2011 Property Tax rates and
corresponding levy By-law will be presented to Council after the Province provides the
education tax rates.
2011 Capital Budget
This year, senior staff are proposing a$24.4 million capital budget that includes a land
purchase of $8.0 million for the new Operational centre. In addition, staff have included
$3.0 million in funding from the York Region Memorandum of Understanding (MOU)
agreement for capital projects that are still to be determined. Without, the land
acquisition cost, the City's 2011 capital budget would be $16.4 million. The major
capital projects are listed below.
Land for New O erational Centre
$8,000,000
York MOU projects
3,000,000
Liver ool Road - Under round Conversion
950,000
Don Beer Memorial Park Relocation
900,000
Civic Complex - Courtard & walkwa re lacement
550,000
In addition to the above major capital projects, the amount of $100,000 has been added
as the City share towards a noise abatement wall along the rear lots of Marinet
Crescent, as a result of the recent motion passed by Council. This expenditure is being
financed by an internal loan and any costs associated with this project will occur in
2012.
Recommendation 15 - Sanitary Sewer Project
The development of the Duffin Heights neighbourhood requires the installation of a
sanitary sewer (400 mm) crossing under Brock Road from the Mattamy site to the west
side of Brock Road (at Dersan). This sanitary sewer will provide for future capacity for
the mixed use lands on the west side of Brock Road from the north limit of the Duffin
Heights Neighbourhood to the south limit (including city owned lands). Delay of this
installation would increase costs significantly, disrupt access on Dersan Street and the
the future William Jackson Drive, and delay the development of the mixed use lands.
Recommendation 15 provides staff the authority to amend the subdivision agreement
between Mattamy (Brock Road) Limited and the City to provide for the construction of
this sewer. The total cost of this works is approximately $300,000. City up-front funding
is $130,000 with $52,000 being recovered in the future from other land owners, resulting
in a net city cost of $78,000.
Report CST 14-11
March 21, 2011
Subject: 2011 Current and Capital Budgets Page 15
108
Government Grant Funding
The 2011 capital budget proposes to use various grants to reduce the City share of the
project's cost. The major grants are: Federal Gas Tax ($1,140,000) and Investing in
Ontario ($323,000).
Future Capital Budget Trends
Every year the capital budget is reduced by deferring projects or replacement
expenditures to future years. Future capital budgets will continue to reflect higher
budget dollars for replacement expenditures as our infrastructure ages and deferral is
no longer an option. Unfortunately, this means that there will be fewer capital dollars for
other capital projects. In other words, for at least the next five years, the City's capital
budget will be primarily focused on the capital three (R's): replacement, renovations and
repairs.
Multi-Year Financial Strategic Plan
Last year, staff presented to Council a multi-year high level financial plan for the years
2011 to 2014. At the Executive Committee meeting of March 10, 2011 staff presented
a strategic financial projection based on the years 2011 to 2015 reflecting various
assumptions regarding the future economic environment.
2012
Proforma
Budget
2013 Proforma
Budget
2014
Proforma
Budget
2015
Proforma
Budget
Cit Bud et
1.4 to 2:4%
1.5 to 2.5%
1.5 to 2.5%
2.5 to 3.5%
Non Seaton - New Debt
Char es
1.0%
1.0%
1.0%
1.0%
Draw Decrease
2.1 %
2.0%
1.5%
0.0%
Pro osed Draft Lev '
4.5 to 5.5%
4.5 to 5.5%
4.0 to 5.0%
3.5 to 4.
The above projection excludes any cost associated with Duffin Heights & Seaton. The
above financial projection includes an allocation for capital debt financed projects.
Projects related to this funding limit will be further identified in the five year capital
budget exercise that will be undertaken later this year.
Future City Growth Related Costs for Duffin Heights & Seaton
Presented below is a high level estimate of the future capital costs related to Duffin
Heights and Seaton. The preliminary cost for Duffin Heights capital projects (in priority
order is presented below):
Report CST 14-11
Subject: 2011 Current and Capital Budgets
Operations Centre & Animal Shelter (including land and services)
Communitv Centres
Duffin Heights
Seaton (main complex - excluding land)
Seaton (secondary - excluding land)
New Fire Headquarters (excluding land)
Fire Hal1 (Seaton North West)
City HaIVLibrary (Expansion)
Total 'Future Project Costs
The majority of the projects listed above will be debt financed.
March 21, 2011
Page 16
109
$38,500,000
40,000,000
80,000,000
50,000,000
20,000,000
10,000,000
30,000,000
$268,500,000
During the next eight years, Council will have to give serious consideration regarding
the phasing in of these future capital projects in order to have sufficient assessment
growth to assist in offsetting debt payments.
Attachments:
1. By-law to Confirm General Fees and Charges, 2011
2. Budget Fresentation Slides, March 10, 2011
Prepared By:
Approved/Endorsed By:
Stan Karwowski Gillis A. Paterson
Manager, Finance & Taxation Director, Corporate Services & Treasurer
Copy: Chief Administrative Officer
Recommended for the consideration
of PickeringzO-ipy CouncA
Tony rrb"vedel, P.Eng.
Chief Administrative Officer
ATTACHMENT#/ Tp REP0RT#_asriy-/I
11Q The Corporation of the City of Pickering
By-law No. xxxx/11
Being a by-law to amend By-law No. 6191/03
to confirm General Municipal Fees
Whereas the Council of the Corporation of the City of Pickering enacted By-law
6191/03, as amended, on October 14, 2003 to confirm general municipal fees.
Whereas Schedule "I" to By-law. 6191/03 was updated and replaced under
By-law, 6338/04, By-law 6519/05, By-law 6652/06, By-law 6677/06, By-law 6748/07
By-law 6857/08; By-law 6951 /09 and By-law 7032/10;
Now therefore the Council of the Corporation of the City of Pickering hereby enacts as
follows:
Schedule "I" to By-law Number 6191/03, as amended, is hereby deleted and
Schedule "I" attached hereto is substituted therefore.
By-law read a first, second and third time and finally passed this 21St day of March,
2011.
David Ryan, Mayor
Debbie Shields, City Clerk
ATTACHMENT#aL-TO REPORT#-a2' rj-/~/
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