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Home My WebLink AboutApril 2, 2007 (Special) Special Council Meeting Agenda Monday, April 2, 2007 Immediately Following the Planning & Development Committee I) INVOCATION Mayor Ryan will call the meeting to order and lead Council in the saying of the Invocation. II) DISCLOSURE OF INTEREST III) ADOPTION OF MINUTES PAGE Executive (Budget) Meeting of March 23, 2007 1 - 9 IV) DELEGATIONS V) REPORTS - NEW AND UNFINISHED BUSINESS 1 0 - 53 Director, Corporate Services & Treasurer, Report CS 16-07 2007 Current and Capital Budqets VI) BY -LAWS VII) CONFIRMATION BY-LAW VIII) ADJOURNMENT 54 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room PRESENT: Mayor Ryan COUNCillORS: D. Dickerson R. Johnson B. Littley B. McLean J. O'Connell D. Pickles ALSO PRESENT: 1. J. Quinn - E. Buntsma - N. Carroll G. Paterson - A. Allison D. Bentley - R. Holborn - C. Mearns - S. Reynolds - S. Karwowski - M. Clark L. Roberts - (\ n'" ~ r . ,,) J Chief Administrative Officer Director, Operations & Emergency Services Director, Planning & Development Director, Corporate Services & Treasurer City Solicitor attended for part of the meeting City Clerk Division Head, Municipal Property & Engineering CEO, Library Division Head, Culture & Recreation Manager, Finance & Taxation Financial Analyst Committee Coordinator (I) PRESENTATION Mayor Ryan welcomed everyone and thanked staff for all of the hard work that was completed with respect to the preparation of the 2007 Current and Capital budgets. 1.J. Quinn, Chief Administrative Officer thanked Members of Council and staff for their support during the year. He outlined in detail the work that had been completed by staff in bringing forth an equitable budget. 1 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room nn"', L' \.) .,;. (II) MATTERS FOR CONSIDERATION G. Paterson, Director, Corporate Services & Treasurer outlined in detail the contents of the Capital and Current Budgets with the aid of a powerpoint presentation. He indicated that revenue challenges continue to be the City's number one priority, noting the goal is financial sustainability and flexibility. He further stated that long range financial planning has to be taken seriously and once again revenue challenges continue to be a priority. G. Paterson, Director of Corporate Services & Treasurer stated we were looking at 4.51% increase for all purposes, which is the lowest in years, emphasizing that this equated to about $75.00 per household per year. 1. REVIEW AND RECOMMENDATIONS OF THE 2007 CAPITAL BUDGET a) Mayor & Council The Capital budget of the Mayor, Council & Council Support was presented by the Chief Administrative Officer. T.J. Quinn, Chief Administrative Officer indicated concern with the costs associated with maintaining and building the City's infrastructure. He made reference to the demands being placed on everyone and when the debt increases, the numbers change drastically. He stated that there would be more COMRIF funding and other grants, which also may change the financial picture. G. Paterson, Director, Corporate Services & Treasurer, summarized the initiatives within the 2007 Capital budget. b) Administration: [Corporate Services/Clerks (Clerks, Animal Services)/Corporate Support Services (Information Technoloqy)l The Capital budget of the Corporate Services Department was presented. T.J. Quinn, Chief Administrative Officer stated that a follow up report with respect to Animal Shelter services would be coming forward within 2 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room r) r~ ':"~; \..' J.) the next two weeks. Discussion ensued on the 2006 actuals related to Animal Services, and confirmation that the monies received from PAW in the amount of approximately $143,000 were assigned to a dedicated reserve fund. Mr. Quinn further noted that a capital strategic plan for shelter services was currently being prepared, and a further memorandum with respect to the operating plan for 2007 would be provided shortly. Further questions arose with respect to the utilization of a portion of the animal licensing revenue towards the capital reserve account for a future animal shelter. Further discussion ensued as it related to the deferral of the funding for disaster recovery and replacement backup network software. c) Operations & Emergency Services [Sustainable Pickering/Emergency Operations/Fire/Municipal Property, Roads, Property Maintenance, Streetlights, Parks, Sidewalks, Storm Water Management. Operations Centre/Civic Complex/Senior Citizens Centre/Programs/Dunbarton Pool/Don Beer Arena/Community Centres/Recreation Complex - Central Core, Pool. Arenas/Museuml The Capital budget for the Operations & Emergency Services Department was presented. A detailed question and answer period ensued with specific reference to the first phase of the museum hotel restoration; costs associated with furniture & fixtures and funds related to Sustainable Pickering. Further discussion followed as it related to the various roads projects, in particular, the Sheppard Avenue urbanization from Altona Road to Rosebank Road, clarification related to the LED upgrade lights at Oklahoma Drive, along with sidewalk reconstruction. Staff were requested to pursue opportunities for financial reimbursement from the Durham District School Board with respect to improvements to the running track. The Director, Operations & Emergency Services noted that due to the condition of the track, improvements would be required to be completed fairly quickly. Staff were further requested to pursue possible corporate sponsorship for the Dorsey James sculptures. 3 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room r~ r~, r U u '-t Discussion ensued on debt financing in the relation to road repairs and rehabilitation, along with the general condition of roads in Pickering. Further questions arose in relation to the maintenance of Dunbarton Pool and its financial feasibility for the City. d) Planning and Development (Planning Administration/Development Control/External Subdivision Works) The Capital budget of the Planning & Development Department was presented. Detailed discussion ensued with respect to sidewalk construction on Wharf Street and Liverpool Road; IPS lights at the Pickering Parkway at Portland Court (ability to install two lanes eastbound may eliminate the stacking problem) and the location of the IPS at Valley Farm Road. e) Libraries The Capital budget of the Pickering Public Library was presented. Mayor Ryan congratulated the CEO and staff on their work. Moved by Councillor Dickerson That the 2007 Capital budget be approved and presented to a Special Meeting of Council on April 2, 2007. CARRIED The Committee recessed at 12: 1 0 pm and reconvened at 1 :00 pm 2. REVIEW AND RECOMMENDATION OF THE 2007 CURRENT BUDGET a) General Government A question and answer period ensued as it related to funding for grants. Councillor Dickerson noted the Durham West Arts Centre had requested $65,000 in funding. Discussion ensued. 4 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room f\ r.- \. UJ Moved by Councillor Dickerson That the grant to the Durham West Arts Centre (referenced as 2195.2570) be decreased in the amount of $20,000. for a total 2007 grant of $45,000. MOTION DEFEATED Discussion ensued with respect to grant requests that had been received. It was noted that the the existing grant policy, with the majority of funding to the United Way would be maintained, and exceptions provided for personal tragedy. The Chief Administrative Officer advised that the City Clerk would respond accordingly to the recent requests. Discussion ensued with respect to the emergency situation at the YWCA in Oshawa, wherein it may have to close due to lack of funding. Moved by Councillor Littley That the City of Pickering provide a one time grant of $5,000. to Durham YWCA for its women's shelter which has been scheduled to close due to an emergency funding situation. MOTION DEFEATED Moved by Councillor Pickles That the TRCA Joint Funded Environmental Project (referenced as 2195.2712) be reinstated in the amount of $10,000. CARRIED Clarification was sought on the basis of 2006 actuals versus the 2007 budget presented. It was noted that the 2006 actuals for consulting, conferences and subscriptions did not correlate to the 2007 budget. The Director, Corporate Services & Treasurer provided clarification on how staff had obtained the 2007 budget figures, and specifically, how the allocations were not necessarily specific to one time consulting; for example the audit fees are considered consulting. He further noted that in 5 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room r~ (I ,..., \... uU a number of cases, there was a corresponding revenue to offset the consulting fee noted. Based on the discussion, the Chief Administrative Officer advised that a memorandum would be provided to members of Council as part of the April 2, 2007 budget package, outlining details relating to the proposed 2007 budget for consulting, conferences and subscriptions. Further discussion ensued regarding telephone budget costs, and the Director, Corporate Services & Treasurer explained that a review had been completed, noting that the new ruling where cell numbers would be portable would allow for comparable cell plans to be evaluated. It was noted a comparison had been completed between Bell, Rogers and Telus, and the consultant had informed the City that the cell phone package was the best. b) Mayor and Council (Mayor/Council/Council Support) The Current budget for the Mayor and Council was presented. Detailed discussion ensued on this budget matter. Moved by Councillor McLean That Outside Agency Services, (referenced as sub-account 2399) be deleted in its entirety from the 2007 budget for the members of Council. MOTION DEFEATED The Committee took a 15 minutes recess and reconvened at 2:45 pm. c) Administration Department [(Office of the Chief Administrative Officer/Customer Carel Corporate Proiects and Policy/Human Resources ( Health & Safety)/Leqal Servicesl The Current budget for the Administration Department was presented. 6 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room en,.., , u ( d) Corporate Services Clerks (Clerks Office, Records Management & Elections, Print Shop/Mail Room, By-law, Animal Services) Finance & Treasury Services (Finance)/Corporate Support Services (Supply & Services, Information TechnoloqvH The Current budget for the Corporate Services Department was presented. Discussions ensued with respect to the revenues generated by the Clerks Division in relation to the budget and staff were commended on the service provided. The Chief Administrative Officer provided clarification on Clerks Division initiatives and goals in relation to Animal Services and By-law Services staffing, service levels, and revenue. e) Operations & Emergency Services (Operations & Emergency Services - Admin., Emergency Operations Control Centre/Fire Services Division (Fire Services)/Municipal Property & Engineering Division (Municipal Property Eng. & Admin., Roads, Property Maintenance, Crossing Guards, Streetlights, Environmental Services, Parks, Operations Centre - Municipal Garage), Culture & Recreation Division (Civic Complex, Senior Citizens Centre, Cult. & Rec. Admin., Programs, Dunbarton Pool, Don Beer Arena, Community Centres, Recreation Complex - Central Core. Pool. Arenas. Museum)l The Current budget for the Operations & Emergency Services Department was presented. A detailed question and answer period ensued, specifically as it related to enhancement of the seniors' snow removal program marketing initiatives (for increased volunteers); improvements to the soccer program by possible rental of additional fields; proper signage for washrooms to advise of seasonal openings and closings and program funding/revenues. Moved by Councillor Pickles That the City of Pickering participate in the CNE garden show in 2007 at cost not to exceed $5,000. CARRIED 7 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room {'. r\ 8 \... I..r' Moved by Councillor Pickles That individual youth skating and swimming passes be set at $2.00 and a family pass set at $5.00., tax inclusive. MOTION DEFEATED Discussion resumed on program fees. It was noted that the City does have options in place to keep our costs down. Staff were requested to review the possibility of holding special spring and fall promotions at a reduced rate in order to increase participation. Further discussion ensued in relation to special event programs that the City participates in. Moved by Councillor Dickerson That the Frenchman's Bay Festival, (referenced as 2712.2394) in the amount of $10,000. be deleted in its entirety. CARRIED f) PLANNING & DEVELOPMENT The Current budget of the Planning & Development Department was presented. Discussion ensued with respect to the Seaton Neighbourhood Planning & Master Environmental Servicing Plan, noting that it was full cost recovery from the landowners. Clarification was also sought on heritage consultant fees, and the possible ability of outside funding for the study guidelines for the Whitevale Heritage District Plan. g) External Aqencies The Current budget of External Agencies was presented. A brief question and answer period ensued with respect to heritage consultant fees for the Heritage Pickering Advisory Committee. 8 Executive (Budget) Committee Meeting Minutes Friday, March 23, 2007 9:00 am Main Committee Room '''.' n J"" l U h) Libraries The current budget of the Pickering Library was presented. Staff were commended on the excellent work completed with respect to library initiatives. Moved by Councillor Johnson That the Committee move into an 'In Camera' meeting for the purpose of dealing with personal matters about an identifiable individual, including employees of the City. CARRIED Confidential discussion ensued with respect to Sustainable Pickering, the role of the Coordinator, Community Capacity Building and legal matters concerning a special event. The Chief Administrative Officer was provided direction with respect to the Coordinator, Community Capacity Building position. Moved by Councillor Johnson That the Committee rise and ratify the actions taken at the 'In Camera' session. CARRIED Moved by Councillor Dickerson That the 2007 Current budget, as amended, be approved and presented to a Special Meeting of Council on April 2,2007. CARRIED (III) ADJOURNMENT The meeting adjourned at 4: 15 pm 9 "1 .., -, t~ .l tJ REPORTS - NEW AND UNFINISHED April 2, 2007 PAGE 1. Director, Corporate Services & Treasurer, Report CS 16-07 2007 Current and Capital Budqets 14-53 1. That Report CS 16-07 of the Director, Corporate SeNices & Treasurer be approved; 2. a) That the 2007 Current (Operating) Budget expenditure for salaries & wages (Account 1100) in the amount of $26,645,519 be approved; b) That the 2007 Current (Operating) Budget expenditure for employer contributions (Account 1400) in the amount of $6,324,567 be approved; c) That the 2007 Gross Current (Operating) Budget for City purposes in the amount of $28,182,201 (which excludes employer contributions, salaries and wages) and includes capital expenditures from current revenues in the amount of $2,283,556; less estimated current operating revenues of $21,838,833 and transfers from the following reserves: Rate Stabilization ReseNe of $1,659,000, which results in a net overall levy for City Operations of $37,654,454 which is approximately a 8.79 percent increase over 2006, be approved; 3. That the Director, Corporate SeNices & Treasurer present the 2007 final tax rates for adoption by Council when further information regarding 2007 Non Residential Education Tax Rates from the Province of Ontario and Region of Durham is available; 4. a) That the 2007 Capital Budget for the City of Pickering with a Gross Expenditure of $9,705,306 be adopted as presented; b) That the following capital financing sources be approved as presented in the 2007 Capital Budget: ('.1-1' \ ~ Transfer from Current Fund to Capital Fund $2,283,556 Transfers from Reserves: - Rep. of Capital Equipment (7000) - Don Beer Arena (7033) - Move Ontario Reserve (7043) - Animal Services Reserve (7044) 51 ,400 70,000 525,000 25,000 Transfers from Reserve Funds - Development Charges - Community Facilities (7700) - Parkland Development (7502) - Federal Gas Tax Funds (7505) - City Share Dev. Charges Projects (7022) - Third Party Contribution (7501) 1,013,675 117,000 580,000 954,000 377,725 50,000 Debt - 5 yr Debt - 1 0 yr Debt - 20 yr Internal Loans Internal Loans - 5 yr. 360,000 1,611,700 725,000 573,000 230,000 15,750 142,500 $9,705.306 Federal Grants (1610) Donations (1592) TOTAL c) That total external debt financing of $2,696,700 for the projects identified in the 2007 Capital Budget, and as indicated in this report, in the amount of $360,000 for a period not to exceed 5 years and; $1,611,700 for a period not to exceed 10 years and $725,000 for a period not to exceed 20 years be approved; d) That projects identified in the 2007 Capital Budget as being financed through the issuance of debt be subject to additional, specific approval by Council of the expenditure and the financing before proceeding; e) That internal loans or dealer financing as indicated in this budget in the amount of $803,000 may be undertaken at the discretion of the Director, Corporate Services & Treasurer be approved; f) 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 ','\ 1 n. ;.' t:... outstanding loan or debt charges or to reduce debt, internal loans or any other amount to be financed; g) That all Capital expenditures or portions thereof, approved in the 2007 and future 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 funds or a combination thereof; 5. That the Director, Corporate Services & Treasurer be authorized to transfer: a) Any surplus current operating funds at any year-end in excess of $125,000 to the Rate Stabilization Reserve; b) Any funds necessary from the Rate Stabilization Reserve in order to ensure that in any year the Current Budget results in a year end surplus of no less than $125,000; c) Any revenue resulting from the disposition of land or other assets in excess of the $50,000 included in this budget to the Reserve for Replacement of Capital Equipment; 6. a) 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 including any re-allocation of 2007 current operating expenditures and revenues resulting from any reorganization and including any adjustment in taxes or tax rates due to Provincial and Regional tax policy changes; b) That any new additional Provincial and Federal Government funding announcements for municipalities in the form of grants or new taxing authority/powers be applied to future Current and Capital budgets; c) That the 2007 Current Operating Budgets for Accounts 1100 (Salaries & Wages) and 1400 (Employer Contributions) be restated for the 2007 Budget once contract negotiations have been completed; 7. That the Director, Corporate Services & Treasurer be authorized at his discretion to close any prior year's capital expenditure accounts, and to first apply any excess funding to any overexpenditure in accounts utilizing the same source of funds and to secondly transfer any remaining excess funding back to the original source of the funds; '11"."'. r t . , ..J 8. That Council enact the attached General Municipal Fees and Charges By- law which provides for the fees and charges that are incorporated into the 2007 Current Budget; 9. That Council authorize and approve the establishment of the Animal Shelter Reserve Fund and that the attached By-law be enacted; 10. That the Director, Corporate Services & Treasurer be authorized to adjust, where appropriate the per kilometre travel expense re-imbursement rate at any time in order to maintain the appropriate level of re-imbursement with any increase in cost being met from under expenditures in other accounts; 11. That Council adopt the following Budget Guidelines for the development and presentation of the 2008 budget; a) That there be no new full or part-time positions, or increase in part- time hours unless these additional costs are offset by additional program revenues, reduced expenditures or is mandated by Federal or Provincial legislation; b) That debt financing for capital projects only be permitted either for health and safety reasons or to participate in financial cost sharing programs; c) That there may be no new, enhanced or expanded current or capital budget programs; d) That the 2008 budget be developed based on a reduced reliance on one-time funds and reserves; 12. That the Director, Corporate Services & Treasurer be authorized to undertake any assessment appeals necessary to protect the assessment base of the City and, 13. That the appropriate staff of the City of Pickering be given authority to give effect thereto. CitJl c~ REPORT TO COUNCIL Report Number: CS 16-07 Date: April 2, 2007 From: Gillis A. Paterson Director, Corporate Services & Treasurer 014 Subject: 2007 Current and Capital Budgets Recommendation: 1. That Report CS 16-07 of the Director, Corporate Services & Treasurer be approved; 2. a) That the 2007 Current (Operating) Budget expenditure for salaries & wages (Account 1100) in the amount of $26,645,519 be approved; b) That the 2007 Current (Operating) Budget expenditure for employer contributions (Account 1400) in the amount of $6,324,567 be approved; c) That the 2007 Gross Current (Operating) Budget for City purposes in the amount of $28,182,201 (which excludes employer contributions, salaries and wages) and includes capital expenditures from current revenues in the amount of $2,283,556; less estimated current operating revenues of $21,838,833 and transfers from the following reserves: Rate Stabilization Reserve of $1,659,000, which results in a net overall levy for City Operations of $37,654,454 which is approximately a 8.79 percent increase over 2006, be approved; 3. That the Director, Corporate Services & Treasurer present the 2007 final tax rates for adoption by Council when further information regarding 2007 Non Residential Education Tax Rates from the Province of Ontario and Region of Durham is available; 4. a) That the 2007 Capital Budget for the City of Pickering with a Gross Expenditure of $9,705,306 be adopted as presented; b) That the following capital financing sources be approved as presented in the 2007 Capital Budget: Transfer from Current Fund to Capital Fund $2,283,556 Transfers from Reserves: - Rep. of Capital Equipment (7000) - Don Beer Arena (7033) 51 ,400 70,000 Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets Page 2 " 1- l"~ J - Move Ontario Reserve (7043) - Animal Services Reserve (7044) 525,000 25,000 Transfers from Reserve Funds - Development Charges - Community Facilities (7700) - Parkland Development (7502) - Federal Gas Tax Funds (7505) - City Share Dev. Charges Projects (7022) - Third Party Contribution (7501) 1,013,675 117,000 580,000 954,000 377,725 50,000 Debt - 5 yr Debt - 1 0 yr Debt - 20 yr Internal Loans Internal Loans - 5 yr. 360,000 1,611,700 725,000 573,000 230,000 Federal Grants (1610) Donations (1592) 15,750 142,500 $9.705.306 TOTAL c) That total external debt financing of $2,696,700 for the projects identified in the 2007 Capital Budget, and as indicated in this report, in the amount of $360,000 for a period not to exceed 5 years and; $ 1,611,700 for a period not to exceed 10 years and $725,000 for a period not to exceed 20 years be approved; d) That projects identified in the 2007 Capital Budget as being financed through the issuance of debt be subject to additional, specific approval by Council of the expenditure and the financing before proceeding; e) That internal loans or dealer financing as indicated in this budget in the amount of $803,000 may be undertaken at the discretion of the Director, Corporate Services & Treasurer be approved; f) 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 outstanding loan or debt charges or to reduce debt, internal loans or any other amount to be financed; g) That all Capital expenditures or portions thereof, approved in the 2007 and future Capital Budgets to be financed through the issuance of debt, may, at the discretion of the Director, Corporate Services & Treasurer, be Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets Page 3 -(l16 financed through internal loans, dealer financing, current funds or a combination thereof; 5. That the Director, Corporate Services & Treasurer be authorized to transfer: a) Any surplus current operating funds at any year-end in excess of $125,000 to the Rate Stabilization Reserve; b) Any funds necessary from the Rate Stabilization Reserve in order to ensure that in any year the Current Budget results in a year end surplus of no less than $125,000; c) Any revenue resulting from the disposition of land or other assets in excess of the $50,000 included in this budget to the Reserve for Replacement of Capital Equipment; 6. a) 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 including any re-allocation of 2007 current operating expenditures and revenues resulting from any reorganization and including any adjustment in taxes or tax rates due to Provincial and Regional tax policy changes; b) That any new additional Provincial and Federal Government funding announcements for municipalities in the form of grants or new taxing authority/powers be applied to future Current and Capital budgets; c) That the 2007 Current Operating Budgets for Accounts 1100 (Salaries & Wages) and 1400 (Employer Contributions) be restated for the 2007 Budget once contract negotiations have been completed; 7. That the Director, Corporate Services & Treasurer be authorized at his discretion to close any prior year's capital expenditure accounts, and to first apply any excess funding to any overexpenditure in accounts utilizing the same source of funds and to secondly transfer any remaining excess funding back to the original source of the funds; 8. That Council enact the attached General Municipal Fees and Charges By-law which provides for the fees and charges that are incorporated into the 2007 Current Budget; 9. That Council authorize and approve the establishment of the Animal Shelter Reserve Fund and that the attached By-law be read three times and passed; Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets '\ .. ~ {~ I , Page 4 1 u. I nat the Director, Corporate Services & Treasurer be authorized to adjust, where appropriate the per kilometre travel expense re-imbursement rate at any time in order to maintain the appropriate level of re-imbursement with any increase in cost being met from under expenditures in other accounts; 11. That Council adopt the following Budget Guidelines for the development and presentation of the 2008 budget; a) That there be no new full or part-time positions, or increase in part-time hours unless these additional costs are offset by additional program revenues, reduced expenditures or is mandated by Federal or Provincial legislation; b) That debt financing for capital projects only be permitted either for health and safety reasons or to participate in financial cost sharing programs; c) That there may be no new, enhanced or expanded current or capital budget programs; d) That the 2008 budget be developed based on a reduced reliance on one- time funds and reserves; 12. That the Director, Corporate Services & Treasurer be authorized to undertake any assessment appeals necessary to protect the assessment base of the City and, 13. That the appropriate staff of the City of Pickering be given authority to give effect thereto. Executive Summary: Not applicable Financial Implications: At the Budget Committee meetings on March 23, 2007, the following changes were made to the draft current budget: Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets Page 5 Current Budqet Additions G18 General Government Section Grants TRCA Joint Funded Projects $10,000 Participation in CNE (Account 2718.2482) 5,000 Current Budqet Reductions Reduction in Contingency Frenchman's Bay Festival (Account 2712.2394) (5,000) (10,000) $0 Total Current Budget Changes These adjustments have been reflected in the Revised 2007 Current and Capital Budgets submitted for Council approval. The 2007 Current (Operating) & Capital Budgets, if adopted as presented, will result in a tax levy increase of 8.79 percent over last year's average property tax bill (excluding any Provincial tax policy changes). On a single detached home assessed at $280,000, the total tax levy proposed increase equates to $1.56 per week. The proposed increase is estimated to be approximately 2.24 percent on the Total Residential Tax Bill. Sustainability Implications: The 2007 Current and Capital Budgets contain a number of projects and expenditures that will contribute to environmental and community sustainability. In addition, this budget continues Council desire to maintain financial sustainability over the longer term Background: The Recommendations put forth are those necessary to adopt the 2007 Current (Operating) and Capital Budgets of the City of Pickering and to provide direction regarding the 2008 Budgets. This year's budget review exercise by the CAO and senior management was one of the most difficult to date given the City's financial position. In the Current Operating Budget every line item of every Section, Division and Department was reviewed, debated, and increases justified in an attempt to reduce discretionary expenditures to the lowest possible. This measure was adopted in order to assist in offsetting mandatory or non- discretionary increases such as inflation, utilities, salaries and benefits. Low assessment growth and fixed mandatory costs translate into budgetary increases which we recognize are not popular with the general public. Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets fi.l" u - ,j City's Budqetary Increase Summary Page 6 Net City Operations 3.98% Less: Return of Cap. From Taxes Easement Settlement Reserve $ 386,000 1,280,000 4.81 Proposed Budgetary Increase 8.79% As shown above, one time funding used to reduce the 2006 budgetary increase has translated into corresponding increase of 4.81 percent for 2007. The 3.98 percent net City operating increase is partially attributable to higher debt costs of 1.14 percent which leaves a residual balance of 2.84 percent which is slightly higher than the rate of inflation but also includes 2007 new positions and annualization of 2006 new position costs. Reserves and Reserve Funds The 2007 Budgets contain continuing reliance upon draws from Reserves and Reserve Funds especially for the Parkland Reserve Fund (Account 7502) as reflected in the graph below. $5.250,000 ~ .... """'. <,.., .... "'" .... ...."." .,,\,..... AlII. "'" ."W" $4,250,000 $3,250,000 $2,250,000 $1.250,000 $250,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year The 2006 projected year-end uncommitted balance for the Parkland Reserve Fund is $1.4 million. However, the 2007 capital budget will use approximately $580,000 to fund various capital projects such as playground equipment and therefore, the estimated 2007 yearend position for this account would be approximately $900,000. (In 1999 the Parkland Reserve Fund's balance was $4.25 million). The External Subdivision portion of the 2007 Capital Budget is funded primarily from two sources: Developer contributions and a City Share Developer Contributions Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets Page 7 '" ..'" ''''\ l:~U (Reserve Account 7022). The City's cost for its share of 2007 capital projects is $377,725. The preliminary 2008 and 2009 capital forecast requirement for the City to fund approximately $11.5 million in City share DC projects. These large future dollar commitments and the City's ability to fund these costs most likely means the City will have to debt finance its contribution of approximately $6.0 million which in-turn will add to the financial pressures on the organization. The City is using approximately $3.76 million in reserve and reserve funds to finance 2007 capital expenditures and $1.6 million to reduce the current budget tax levy. As indicated in the annual reports filed by the Treasurer, the majority of the City's reserve and reserve funds can be classified as non-discretionary. In other words, there is either a specific purpose, intent or condition on the use of the funds. The projected estimated draft, December 31, 2006 non-discretionary balance is $44.2 million ($5.8 million committed) with the Development Charges reserve fund having a projected balance of $22.75 million. Other non-discretionary reserve or reserve fund balances include Third Party Subdivision Agreements, Parkland Reserve Fund, Worker's Compensation, OPG Appeal and Self Insurance. The projected December 31, 2006 discretionary reserve and reserve fund balance is estimated to be $4.25 million. The Rate Stabilization Reserve is the largest component of the discretionary funds of which $1.6 million is being used this year to reduce the 2007 tax levy. In 1998 the balance of these same funds totaled approximately $13.6 million. Debt and Debt Charqes The current level of debt, and the resultant annual debt charges, is at a relatively high level, especially considering this means of financing was not used before 1998. The 2007 debt of $2,696,700 plus $803,000 in internal loans will translate into additional debt charges and will necessitate an approximate 1 .25 percent increase in the 2008 Current (Operating) Budget. For 2007, the City is planning on issuing $3,499,700 of internal and external debt for various projects listed in Table One. Table One External Debt and Internal Financing of Capital Proiects City of Pickering 5 & 10 Year Debt Financing 2007 Capital Budget Capital Project Code Debt- 5 Description Years ($) 07-2320-001-04 260,000 Five ton dump truck 07-2731-005-05 100,000 New roof for tennis court area Total Five Year Debt $360,000 Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets Page 8 !\ r;, ~ I.. ... .J. - -c;apital Project Code Debt -10 Description Years ($) 07 -2320-009-13 640,000 Additional funds for Bulmer Bridqe 07 -2320-008-07 321,700 Liverpool road reconstruction - Wharf St. to Annland St. 07 -2320-008-14 250,000 Additional funding for Old Brock Road reconstruction. 07-2718-001-11 200,000 Sunbird Trail park development. 07-2321-002-10 200,000 External Subdivision project (DH-24), sidewalks & streetlights constructed by the CP rail underpass. Total Ten Year Debt $1,611,700 City of Pickering 20 Year Debt Financing 2007 Capital Budaet Capital Project Code Debt - 20 Description Years ($) 07 -2320-008-16 725,000 Sheppard Ave - Altona Rd to Rosebank Rd., slope retention system. Total $725,000 City of Pickering Internal Loan/Dealer Financing 2007 Capital Budget Capital Project Code Internal Description Loan/ Dealer Financing ($) 07 -2240-002-01 150,000 Five year financing term - Furniture & equipment for Station NO.5 addition 07-2320-001-03 80,000 Five year financing term - Vehicle - 1 ton dump truck with crane. 07-2718-004-01 100,000 Two utility tractors - Treasurer to determine loan term. 07-2718-001-01 175,000 Repair & resurface Bev. Morgan running track. Treasurer to determine loan term. 07-2718-001-13 100,000 Repair & replace interlock brick - Phase 1 Esplanade Park. Treasurer to determine loan term. 07 -2124-005-01 38,000 Phase 2 - Pattern concrete in front entrance area of civic complex (interlocking stone replacement). Treasurer to determine loan term I Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets Page 9 .. 1"\'90 l:....(.., 07-2715-005-02 50,000 Replacement of concrete floor on pad 2 (Don Beer arena - design only). Treasurer to determine loan term. 07-2719-005-05 110,000 Replace parking lot - West Shore Community Centre. Treasurer to determine loan term. Total $803,000 2007 Budqet Based on Estimates As in previous years, the City's budget includes a component that is based on estimates or best known information when the budget is developed. The 2007 operating budget for building permit fees has been reduced to reflect 2006 actual revenues and anticipated activity for 2008. Presented below is the summary of activity for building permit fees. 2007 Draft Current BudQet BuildinQ Permit Revenue ($) 734,460 599,324 800,000 (150,000) 650,000 While the 2007 budget has been reduced, there is a possibility that building permit revenue may continue to decrease. Unfortunately, the decrease in building permit revenue is an indicator of future lower assessment growth for 2008 and 2009. As stated in last year's report, the 2006 budget for education PIL revenues is an estimate due to the fact the 2006 education rates for commercial and industrial assessment will not be known until spring of this year. Members of Council may recall that the City retains the education portion of the property taxes for "pay-in-lieu" properties. T ax Rates As has been the case for the last few years, the 2007 Property Tax Rates and Levy By- law will be presented at a later date when more information is available from the Province regarding the education tax rates for the large industrial tax class. Several years ago, the City was able to absorb on a short-term basis the loss of revenue due to Provincial and Regional Governments taxation policy changes. Unfortunately, this year, the City has limited financial flexibility and is therefore unable to offset any anticipated revenue losses due to higher level government decisions Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets ('. r> ': ...,:.J Page 10 regarding tax rates and tax policy decisions. With the City being in a limited assessment growth scenario, our ability to absorb these revenue losses through increased assessment does not exist. Therefore, Recommendation 6 a) will allow the Treasurer to make any adjustments to the 2007 proposed Total Tax Levy to reflect senior government tax policy decisions. Capital Forecast The capital forecast (2008 and 2009) projects a total expenditure in the amount of $51.6 million. The high capital forecast is a result of projects and capital expenditures being deferred to future years due to affordability limitations. As Members of Council are aware, the City cannot afford these types of expenditures during the next two years. Over the next few months the capital forecast budget will be reviewed from the perspective of affordability, maintenance and safety. A revised capital budget forecast will be presented to Council later this year. 2007 User Fees & Charqes Schedule Every year, the City increases its user fees mainly for various recreational and cultural programs to partially reflect the cost of delivering the various programs. Council passed Resolution #149/03 confirming the City's existing user fees through by-law. This By-law was updated as part of the 2006 budget process. In order to have the new user fees become effective, Council will be required to approve the 2007 User Fee By-law, (as required under Section 391 of the Municipal Act) which is included in this report. The Municipal Act, as amended through through Bill 130, no longer requires municipalities to maintain a formal list of fees and charges. Staff, however, have decided to maintain the fee list due to the fact the fee list facilitates financial control and auditing by ensuring that the correct fees are charged and provides Council and the general public an opportunity to review the fees and provide any comment or input. In addition, having the fee list approved via the budget process allows general public comment and provides for a more open access and transparent government process. 2007 Budqet Summary Paqes Attachment 1 includes the budget summary pages. Animal Shelter Reserve Fund In February, 2007 the City received a cheque from the Town of Whitby in the amount of $144,433 as the City's share of the proceeds resulting from the dissolution and disposition of the assets of Pickering, Ajax, Whitby Animal Services (PAW). This cheque was deposited in an account for an Animal Shelter. Recommendation 9 provides for the establishment of an Animal Shelter Reserve Fund which will clearly differentiate those funds from all others received by the City and provide that interest earned on the funds shall be credited to this Reserve Fund. The initial deposit will be Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets Page 11 '\ t) ..~ l' ,;". '1- the PAW proceeds plus approximately $1,000 raised as donations from a "Dogs in the Park" event held in 2006. Multi Year Financial Strateqic Plan At the March 23rd, Executive Committee meeting, staff presented the City's long term financial plan in two components: (Phase 1) 2007 to 2011 and (Phase 2) 2011 to 2014. The 2007 to 2011 financial plan projects a steady decrease in the levy increase based on various assumptions. (Attachment 3 - slide seven outlines these assumptions). These assumptions are key to the success of the financial projection. Every year, the Phase 1 projection will be updated to reflect current information which in-turn may change budgetary assumptions such as utility costs and assessment growth. The City's budgeted personnel expenditures represents 57.9 percent of the City's total expenditures. Future negotiated settlements and industry trends can have a significant impact on the City's financial projections both positive and negative. Phase 2 (2011 to 2014) financial projection provides a longer term approach or outlook. Based on known facts, the long term outlook indicates a "leveling off" or a stable period of budgetary increases. As stated at the presentation, the risk or uncertainty factor increases over time. Assessment Analvsis of Lands At the March 23rd, 2007 Executive Council meeting, information was provided regarding land sales in the rural north east area of the City. The reported land sales transaction appears to be substantially higher than the assessed value of the property. Staff have discussed this issue with its assessment consultant and lawyer. They have advised the City to conduct an assessment analysis of these properties and work with the Municipal Property Assessment Corporation or MPAC on this issue. The consultant will use recent land sales transactions and review land use as part of their analysis. Working with MPAC could be beneficial due to the fact, increased land values could be reflected in the returned (property assessment) roll for 2008 taxation year. In our discussion with the consultant we have asked them to tentatively complete the work by the end of this summer so that there is sufficient time to work with MPAC on updating the 2008 returned assessment (property tax) roll. If MPAC is unwilling to make the changes, the City would then file assessment appeals in 2008. As a first step, the property analysis will focus primarily on Ontario Government lands and with time permitting - Federal Government lands. Report CS 16-07 April 2, 2007 Subject: 2007 Current and Capital Budgets Page 12 ,\?fI.~ C_..J Attachments: 1. 2007 Financial OveNiew, February 8, 2007 2. By-law to Confirm General Fees and Charges, 2007 3. Budget Slide Presentation, March 23, 2007 4. By-law to Provide for the Establishment of an Animal Shelter Reserve Fund Prepared By: Prepared I Approved I Endorsed By: S~Ski c2- Manager, Finance & Taxation ~~...~..,..~._/.:'] .<...- .~.~~~ ~=-"'. -:'"'--;:_... Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering ncil OIl. ;If' ATTACHMENT#-L. TO REPORT#~''''07 nr,('> u::.,u 2007 Financial Overview February 8, 2007 Deer Creek Golf & Country Club Introduction Message Unchanged from Prior Years Current budget pressures same as other municipalities. City is in a "Limited" (Assessment) growth situation. (In fill only). Increasing pressure on capital budget as infrastructure ages. However, adding debt puts upward pressure on operating costs. Financial flexibility is at a minimum. City's financial sustainability has to be addressed during this term of Council. 2 C'. f) "'., . . (.. I 2007 Financial Overview The purpose of this briefing is to provide: 1. Review of 2006 Budget tax levy increase 2. Current City Financial Situation 3. 2007 Budget Guidelines 4. Preliminary Draft 2007 Financial Position Our goal is financial sustainability for the City. 3 2006 City AQProved Budgm Budgetary Increase before One Time Funds Less: Return of Cap. From Taxes Rate Stab. Draw Res. Easement Settle Agree Res. 14.99% $386,000 1,320,000 1,280,113 9.20 Council Approved Levy 5.79% The City used $2.98 million to reduce the 2006 tax levy which has to be replaced in 2007. 4 2 n 2~~:(- u v Benefits & Pitfalls In the Use of One- Time Funds Scenario A Scenario B (Year 1 Levy Decreased bv One-Time Funds) $10,000;000 SS,coo,aoo $6.000,000 S4COO,OOD j $2,000,000 '0 Year 1 Year 2 Year 1 Year 2 IOLevyl iOLevyl Under Scenario A, Year 2 dollar increase is $2.0 M. The Year 2 percentage increase is 25.0%. $3,250,000 $2,750,000 $2,250,000 $1,750,000 $1,250,000 $750,000 Under Scenario S, Year 2 dollar increase is $4.0 M. The Year 2 percentage increase is 66.7%. 5 A Different View of the Use of One- Time Funds These tvio fundin~ .67M) uree re not available'in I 2006 2007 [0 Rate Stablization . Easement Settlement Res. Q] Prior Year's Capital The City used $3.0 M in one-time funds to reduce the 2006 tax levy. The 2007 budget challenge is - how do you replace $1.67 M of one-time funds? 6 3 r.~ r') "^, ~..> ~J April 2005 Budget Forecast for 2007 At the April 7th, 2005 Budget Committee meetings, staff presented the following information to Council. 2005 Draft Budget {OOO's) Total City Operations $ Less: One Time Funding City Levy 35,700 (1,000) 34,700 City Levy (%) 6.7% Final Levy Additional 1 One Time Funds 5.500/0 2006 Proforma Budget (OOO's) $ 36,100 $ (1,000) 35,100 2007 Proforma Budget (OOO's) 37,700 (1,000) 36.700 8.0 - 12.0%, 7 Feb 2006 Forecast for 2007 Draft Budget Feb 27/06 - Mqmt. Forum UnControllable Salaries & Benefits Annualization of 2006 New Positions General Inflation Debt Charges Reduction in Assessment Grow1h Sub Total Additional 1 One Time Funds 5.790/0 Reduction in Use of One-Time Funds or Sources Easement Settlement Reserve Draw from Rate Stab. Res. PriorYrs.Capital Sub Total Total Starting Financial Position 2007 Budget The above financial estimate excludes: Any new positions for 2007. New programs or enhanced levels of service. 3.50% 0.78% 1.00% 2.25% .1..00% 8.53% 2.99% .1....J.3.% 7.32% 1?85~:',!. 8 4 f't M,.'~ I... ,j \ J Reserves & Reserve Funds Summary (Proi. Sal Dec.31, 2006) Non Discretionarv Discretionary Total Reserve Funds $23,125,621 $1,380,169 $24,505,790 Reserves 6.650.253 2,380.905 9,031.158 Total $29,775,874 $3,761,074 $33,536.948 The draft 2007 budget is already using $1.5 million of discretionary funding. 9 Discretionary Reserves & Reserve Funds 1 999 - 2006 12 fFt 10 8 6 4 2 o O)tf> (;:)rS> (;:)0" (;:)0'V (;:)0";) (;:)0'1> (;:)o~ (;:)0(0 (;:)~ (:;),,0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ 'Vo(:j ~ ~ Year 10 5 n ')" '-; 0 ! City of Pickering Annual Debt Charqes 2001 to 2015 $ $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 ~" ~n, ~~ ~ ~O) ,," "n, ,,~ ~ ~ rv(S rv(S ~ rv~ ~ ~ 1___ Principal & Interest -- Forecast I 11 New Residential Units Constructed in the GTA - 2005 Total GTA 35609 Pickering 178 Toronto 35''10 12 6 Building Permit Trends $1,400,000 f1 $urplus $1,100,000 $800,000 $500,000 2003 2004 2005 2006 2007 1-0- Budget -I:r- Actual I Building Permit revenue is an indicator of future assessment growth. Assessment Growth Timinq Model For residential homes, building permits and construction are usually completed in one year. _", I') I") \..~" 13 14 7 "r..,-. l!00 City of Pickerinq Assessment Growth 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 10 Pickering. Town "A" I 15 Another Perspective of Tax Levy Increases Fixed Other Exp. Est. Assessment Tax Levy Municipality Increase Revenues Growth Increase nAil 12.0 -3.0 -5.5 3.5 118" 12.0 0.0 -1.0 11 Under the above situation, both municipalities have the same core cost pressures such as: wage settlements, utilities and costs associated with meeting Provincial Government regulations. 16 8 034 2006 Allocation of Residential Prop. Taxes Region 54% School Boards 20% 1m City. School BoardS.RegiOnl 17 Percentages Vs. Dollar$ In 2006, the budgetary levy increase was 5.79% or 1.45% on the Total Tax Bill. A 1 % budgetary increase translates into $9.75 per year or 20 cents per week. 1....A.S..s....e..s.sm...e.. .nt . $296,000 .... 1.0% City $9.75 City 1 % = 20 cents per week. 18 9 (' ')- ....: ~J Summary of City's Current Financial Environment City is in a limited growth scenario. Debt and debt payments are reaching all time highs. The City needs several years of financial breathing room. 19 New Facilities & Service Level Enhancements The City is currently in a "limited growth" scenario regarding population and assessment. In other words, the City is in a "status quo" position. 1 % Assessment growth does not cover City core inflationary pressures such as utilities, wages and higher costs to meet Government Reg.'s. New facilities and their corresponding operating and financing costs will have to funded through increases in property taxes. Increase service levels provided by additional staffing or other means will have to be funded through increases in property taxes. Until the City's assessment growth is above the core inflationary level, changes in service levels and facilities will have to be funded through increases in the tax levy. The City does not have the financial resources to absorb these extra costs. 20 10 ;';." ~ \..~v Feb 2006 Forecast for 2007 Draft Budget Feb 27/06 - Momt. Forum UnControllable Salaries & Benefits Annualization of 2006 New Positions General Inflation Debt Charges Reduction in Assessment Growth Sub Total 3.50% 0.78% 1.00% 2.25% 1..0.0% 8.53% Reduction in Use of One-Time Funds or Sources Easement Settlement Reserve ,.........."'..,..........-...."..............."............................ Draw from Rate Stab. Res. PriorYrsCapital Sub Total Total Starting Financial Position 2007 Budget 3.20% 2.99% .:L.ll% 7....3.2.% 15.85'% The above financial estimate excludes: Any new positions for 2007. New programs or enhanced levels of service. 21 2007 Budget Guidelines Based on Council's approval guidelines (April 2006) 1. Minimum increase in full time or part time staffing hours. 2. Maintain current service levels. 3. Capital funded from property taxes continues to be reduced. 4. Debt financing continues to be reviewed. 5. Reduced reliance on one-time funds. 6. All discretionary expenditures are at 2006 or below budgetary levels. 22 11 '\ ') ~ U0' Introduction to the Multi Year Plan 1. Staff are recommending that a multi year strategic plan be developed. 2. Plan is required due to City's unique financial environment. 3. The financial plan will act as blueprint for future City service delivery based on current financial resources. 4. The multi year plan will assist with future budget development and service delivery issues. 23 Multi Year Fiscal Plan For the plan to succeed, a corporate wide effort is required. Costs will have to be contained and new revenues/fees will have to be explored for the plan to work. The plan will be updated every year to accommodate new information and uncontrollable events. Uncontrollable events range from Federal to Provincial Government regulation changes (and their hidden costs), to unexpected changes to our core inflationary factors. 24 12 _ .D!J C \. 0iJ 2007 Preliminary Current Budget April 2006 Forecast for 2007 Current Position Further use of One-Time Reserves 2007 Levy 15.85% 8.9 - 9.9 1 TBD Starting Position of Multi Yr Plan The multi year plan will be based on the City's current service levels and community facility infrastructure. Increase levels of service and or facilities will have to be treated as an additional tax levy. 25 2007 Draft Capital Budget Development $45,000,000 $35,000,000 $25,000,000 $15,000,000 $5,000,000 - en ca (J Ql ... o u. 1-.- Draft Capital Budget 1 The 2007 draft capital budget is currently at $10.9 million. > o Z q- (J Ql 9 It') ,.... C\I ,.... C\I .0 Ql U. (J Ql C c: ca :'? 26 13 - Cl, I)..') ~ oJ ,J 2007 Draft Budget Timetable 1. Budget package to be mailed out on March 9, 2007. 2. Budget Committee meetings scheduled for March 22 to 23. 3. Council adopts budget at the April 2nd, 2007 Council meeting. 27 Financial Summary Over the last 35 years, senior government indecision regarding withholding vast parcels of land from economic development has created a unique financial challenge. Every year, expenditures increase due to: core inflationary pressures, increased costs associated with Government regulations and higher repair and replacement costs of the capital infrastructure. Pickering does not have access to ongoing revenues that increase with inflation. The City needs "financial breathing room" (several years) to assist in meeting the unique Pickering financial challenges. 28 14 n..'4J"'!. \.. . Conference Board of Canada (February 6, 2007) "The municipal governments of Canada's major cities are caught in fiscal pincers: on the one hand, they bear the costs of services that have been off loaded by federal and provincial governments over the last two decades....; on the other hand, they are under financed by available resources of revenue." "Although the fiscal situation of .. .cities is untenable, senior levels of government continue to reap the immediate rewards of maintaining the status quo." "As a result, federal and provincial governments get the upside of urban growth - the goldmine - while big cities get the downside - the Shaft." 29 CAG Action Plan 30 15 '\ 4 '" l> 1. CAO's Action Plan Actions Undertaken Every Year: All operating costs scrutinized and reduced to minimum levels. All utilities, contracted services reviewed and reduced. All other non mandatory costs reviewed and reduced. Selective hiring freeze implemented. All fees, charges and other revenues reviewed and maximized. 31 Staff's Action (2001 & Ongoing) Veridian Interest & Dividends $13,759,750 Transit Funding 5,486,200 Ongoing Assessment Appeal 2,610,000 Easement Settlement Ag. Res. 2,500,000 POA 2,349,459 Land Sales 753.775 Total $27.459.184 This is in addition to the $25 M in draws from Reserve & Reserve Funds used to balance the budget. 32 16 '. 4 "'. r _l' ." ~....- .., Corporate Action Plan Future Strategies/Options: Business (service) delivery model to be Reviewed. Vacancies to be carefully reviewed. - May not be filled. - Resources may need to be reallocated. Capital maintenance budgets will be a priority for this Council term. Existing infrastructure has to be maintained for the health and safety of our residents and staff. 33 Corporate Action Plan Review of large assets. Land Holdings Brock Road surrounding the Operations Centre there are approximately 30 acres of developable land. North of the Operations Centre there are 5 to 10 acres of developable land. Veridian Shares The former Pickering Hydro was merged with other municipal hydro entities to form Veridian. Prom Notes - $25.1 M Shares initial value $30.5M 34 17 " 4 r.' / . _ _ \.. d Conclusion Paraphrasing As chairman Anderson in his speech to Council on Monday (February 5, 2007) We must use the forthcoming Provincial and Federal elections to our maximum advantage to achieve our larger goals. 35 Corporate Action Plan I am recommending that two Ad Hoc Committees of Council be formed for the following: Committee A Committee B To pursue the Ontario Government for financial compensation over its 35 years of indecision over the North Pickering lands. The Provincial history of these lands is as follows: Cedar Wood - Pop. 250,000 North Pickering - Pop. 90,000 Seaton - Pop. 70,000 To pursue the Federal Government for financial compensation over its 35 years of indecision over the North Pickering lands. The Federal Government history of these lands is as follows: From International Airport (to replace Pearson) to a Regional Reliever (GTAA). 36 18 ATTACHMENT#~ TO REPORT#.a.1 ~''''f)7 THE CORPORATION OF THE CITY OF PICKERING BY-lAW NO. xxxx/07 -1~44 Being a by-law to amend By-law Number 6191/03 to confirm General Municipal Fees WHEREAS the Council of the Corporation of the City of Pickering enacted By-law Number 6191/03, as amended, on October 14, 2003 to confirm general municipal fees. AND 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 and By-law 6677/06; NOW THERFORE THE COUNCil OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOllOWS: 1. 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 2nd day of April, 2007. David Ryan, Mayor Debi Bentley, Clerk CORP0223-07/01 ,CHMENT#-3-1 " A. - l'QJ 2007 Current & Capital Budgets & A Financial Overview 2007 - 2010 2011 - 2014 Budget Goals · Financial Sustainability · Financial Flexibility · The City undertakes longer range financial planning in both its Current & Capital Budgets 2 #~/fo-07 Executive Committee March 23, 2007 1 -, 41""'1 r. Clo I. V The Need for Financial Planning · Revenue Challenges · Expenditure Pressures/Debt Doubles · Discretionary reserves and reserve funds being depleted · Lack of assessment growth 3 2007 Budget Objectives CAO and Department Heads · Undertook a line by line review of every budget · Focus on 2006 Actual Expenditures where reasonable · To use the lower of 2006 Actual or Budget (Depts. Inc.1.65%) · Dept. Revenues Inc. 5.350/0 4 2 C 4"(. 2007 Draft Budqet Summary BUDGET (DECREASE) ~ $53,404,854 $2,432,740 $55,837,594 -20,812,286 $32,592,568 2,635,911 395,226 -85,572 ,715,847 $39,313,454 5 ErQperty Tax Impact Summary What will the residential taxpayer see on their tax bill? City Share 0/0 81.14 8.79% Pickering increase equates to $1.56 per household or $0.50 p person per week. Total Bill (Region, School Board & City) 280,000 $3,783.74 163.19 $ 3,620.55 6 3 048 Multi Year Fiscal Plan 2007 - 2011 Current Budget Assumptions - annual increases No increase in staffing Utilities (water, hydro & gas) Building Repair and Maintenance Debenture Debt Charges Departmental Revenues Annual Operating Surplus Other Operating Costs Assessment Growth 0.0% 7.5% 5.0% 10.0% 1.5% $650,000 2.5 - 3.0% $300,000 Additional assessment associated with Duffin Heights Neighbourhood development projected to commence in 2011 7 Financial Projection 2007 to 2010 Net City Operations Levy Change 2007 2009 2010 Draft Proforma Proforma BUDGET BUDGET $39,313,454 $42,223,000 $44,714,000 $47,317,000 12.13% 10.26% 9.35% (1.659.000) (1.668.000) (1,444.000) (1 ,580.000) ~37,~~4,4~4 $40,555,000 ~43.270.000 l!45.737,000 8.79% 7.70% 6.70% 5.70% 56.351,000 Total City Operations % Reserve Draw Tota! Reserve Draw 8 4 " 4 - l' .j Financial Projection 2011 to 2014 2011 2012 2013 2014 Proforma Proforma Proforma Proforma BUDGET BUDGET BUDGET BUDGET Total City Operations $50,038,000 $52,278,000 $55,160,000 $58,232,000 Reserve Draw (1,053,000) (499,000) (430,000) (493,000) Net City Operations $48.985.000 ~51.779,00O $54.730.000 $57,739.000 7.10% 5.70% 5.700,,> 9 Summary If the projections prove correct: · Lower tax increases with stability · Fund balances replenishment commences . Long term strategic planning for the end of future (greenfield) growth If they do not prove correct: · Loss of financial flexibility and sustainability · Depletion of remaining fund balances · Increasing debt · Continuing high tax increases 10 5 (\5.0 Capital Forecast 2008 - 2011 Fall 2007 Multi Year Budget 11 Draft 2007 Capital Budget Summary OnQoinQ Prior Year's Proiects 2006 Projects Prior Year's Projects Ext. Subdivisions Prior Year's Projections Total Projects to be Completed $2,834,000 1,856,500 1,962,022 .$6,652,522 12 6 " e:: .C - .- l ~ J. 2007 Capital Budget Summary External Subdivisions Roads Sidewalks & Street Lights Stormwater Management Traffic Signals Total External Subdivisions Capital Maintenance & Replacement Health & Safety New Capital Grand Total Grand Total with Prior Year's Projects $ 884,500 481,900 160,000 65.000 $1,591.400 4,068,201 1,112,800 2,932,905 $9,705,306 $16,357,828 13 Sustainable Pickering Capital Budget Major Initiatives Clean Air Initiatives Humidification System Civic Complex Hybrid Vehicles (2) Trees (City Green Canopy) Clean Water Initiatives Toy Ave. Storm Sewer Installation Frenchman's Bay Master Plan Sideline 16 Erosion Control EnerQV Efficiencv Initiatives Roof Replacement with higher level of insulation Rec Complex (tennis court area) (Dunbarton pool) $ 80,000 84,000 85,000 250,000 150,000 85,000 100,000 80,000 14 7 ,~ 5" l: .(" Energy Efficiency Initiatives (cant' d) New Vapour Barrier (on pool wall) New Ammonia Compressor Reline 4 Hot Water Tanks New Energy Efficient Compressor for East Shore Gym High Efficiency Furnace for Greenwood Community Centre $80,000 55,000 25,000 20,000 1 0.000 Total $1.104.000 15 2007 Maior Capital Proiects Sheppard Ave. Altona Rd to Rosebank Rd . slope retenti on liverpool Rd reconstruction: Wharf St to Annland St Sidewalk & Streetlights by CP rail underpass 400,000 EA process for Duffin Heights Neighborhood Old Brock Rd reconstruction. additional funding Purchase of property for Pickering Waterfront trail 220,000 Town Centre West access road Bev Morgan Park. running track & electrical 191,000 Ressor Creek Bridge. additional funding 100,000 100,000 Hotel restoration project. phase 1 Total 80,000 $ 4,107,200 16 8 ATTACHMENT #....:L TO REPORT # ~I'r 0 1 THE CORPORATION OF THE CITY OF PICKERING "5~ r . - <-",7 .J BY-lAW NO. XXXX/07 Being a By-law to provide for the establishment of a Reserve Fund to be known as the Animal Shelter Reserve Fund WHEREAS under the Municipal Act, S.o., 2001 as amended, Section 11, the Council of the City of Pickering may establish and maintain a reserve fund for any purpose for which it has authority to expend funds. WHEREAS the Council of the City of Pickering approved Council Report CS 16- 07 endorsing the creation and or establishment of an Animal Shelter Reserve Fund to provide a source of funds for a permanent animal shelter. NOW THEREFORE THE COUNCil OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOllOWS: 1. The establishment of a reserve fund to be known as the Animal Shelter Reserve Fund is hereby authorized. 2. The purpose of this fund is to provide funds for the provision of an animal shelter. 3. The initial source of funds will be a transfer of the proceeds of the dissolution of "PAW" in the amount of $144,433.00 to this reserve fund and donations received to date in the amount of $963.00. Future sources of funds will be as identified by the Treasurer or as approved by Council including but not limited to the annual budget, donations or any other source. 4. The Treasurer may draw funds from this reserve fund to provide for the construction of an animal shelter. 5. Interest earned on the investment of fund balances shall form part of this reserve fund. 6. This By-law shall come into force on the date of its enactment. By-law read a first, second and third time and finally passed the 2ndrd day of April, 2007. ' David Ryan, Mayor Debi A. Bentley, City Clerk CilIJ o~ '."~5 ,I! lei April 2, 2007 BY-LAWS 6748/07 Being a by-law to amend By-law No. 6191/03 to confirm General Municipal Fees [Refer to Page 44] 6749/07 Being a By-law to provide for the establishment of a Reserve Fund to be known as the Animal Shelter Reserve Fund [Refer to Page 53]