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HomeMy WebLinkAboutTR 03/98 - ,tit' OF "'Ie ~oW% iE :Liil. B ~ REPORT TO COUNCIL -. FROM: Gillis Paterson Director of Finance DATE: January 20,1998 REPORT NUMBER: TR 03-98 SUBJECT: 1998 Budgets - Status Report \ RECOMMENDA nON: It is recommended to Council that: (I) Part A of 1998 of the Budget Status be received for information; and (2) capital expenditures for computer hardware and software to be wldertaken by the Information Systems Division, not exceeding $236,000 for the period January I, 1998 to June 30, 1998, be approved. ORIGIN: To provide a preliminary overview of the 1998 budget process and to obtain Council authority to undertake capital expenditures for information technology. AUTHOIUTY: The Municipal Act, R.S.O. 1990 as amended. FINANCIAL IMPLICATIONS: The amount of $236,000 included in the recommendation will be financed by property taxes in 1998. It is included in the draft 1998 Capital Expenditures nudgct for the Information Systems Division. BACKGROUND: ,../' The 1998 budget process is probably going to be unlike that of any previous year. What with "downloading," "Who Does What," implementation of the Ontario Fair Assessment System, (OF AS), charges to property taxation for education purposes, shifts in education and region levy apportionment due to the OF AS and pressures on our own budget, many issues will have to be addressed. /- Under the Interim Spending Authority approved by Council at its meeting of December 22, 1997, Council provided for the financial aspects of carrying on business by the Town staff during thc pcriod January I, 1998 to thc datc the 1998 estimates are approved. Thus, operating expenditures, in the main, are provided for during this interim period. It was noted in the report that capital expenditures were not being provided for and would be subject to specific Council approval. - 2- - January 20 , 1998 Report to Council #TR 03/98 Discussion: A. Budl!:ct Status \ Normally, preliminary budget discussions would commence soon, however, this will not be the case in 1998. Also, due to a somewhat later start on the 1998 budget exercise, in no small respect due to the foregoing, 1998 operating budgets are now being compiled. Capital budget assembly is also underway. It is hoped that a preliminary draft budget for discussion with the General Manager and department heads will be available by mid February. Depending upon the timing of the foregoing events, informal preliminary discussions with Council may be possible in March. 13ased upon the foregoing, Council should be in a position to undertake final budget discussions within an April to June timeframe. In the meantime, starf are proceeding with the planning of capital expenditures, including scheduling, pricing and the calling of tenders so as to be ready to undertake the activities upon approval of the Capital Budget by Council. Assessment: Information recently received from the Regional Assessment Commissioner contained three key dates: Mailing of Assessment Notices to Property Owners: February 13, 1998 Return of Assessment Role to Municipalities: April 30, 1998 Last date for appeal: June 29, 1998 - These dates are considerably later than in previous years and will affect Council's timetable for addressing the Town's 1998 Budgets. Moreover, in separate correspondence from the Minister of Municipal Affairs, the deadline for establishing 1998 tax ratios and the upper tier levy has been extended from March 15 and March 31 respectively to May 31, 1998. The assessment 1'011 is usually returned in December. For 1998 taxation purposes it is being returned April 30. Open houses have been scheduled by assessment staff to be held on March 4, 5 and 6 [rom 10 a.m. to 8 p.m. in the Pickering Civic Centre to answer questions on assessment [rom the public. It is anticipated that education funding details and school tax rates will be announced by the Province sometime in February or March. Municipalities will, therefore, be in a position to set new tax (mill) rates in Mayor June. Given the foregoing, Council deliberations of the 1998 Budget could commence as soon as they are ready, possibly in March, while tax (mill) rates may not be set until as late as June. .// At this time three important factors should be noted: I. In spite of the above cautionary comments, staffwill undertake to provide Council with as much information as possible in the most timely fashion; 2. F or a variety of reasons, such as increases in departmental budgets, capital projects and estimated lower assessment growth, there will be internal upward pressures on the Town's 1998 Operating Budget, and the resultant ta'\( (mill) rate; and - 3. The events noted in the first paragraph of this report may, in all likelihood, result - 3 - ,.-. January 20, 1998 Report to Council HR 03/98 in significant external upward pressures on the Town's mill rate, and quite possible that of the Region, with, hopefully, off-setting, to the greater degree, decreases in the residential education mill rates. Pressures include the effect of downloading on the Town and Region of the Ontario Fair Assessment System, the elimination of the Business Occupancy Tax and revisions to education funding. , , \ I cannot emphasize too strongly the significance of the foregoing and difficulties in dealing with them in the contcxt of the 1998 budget excrcise. 13. Capital Budl!et- Interim Approval The information Systems Division is the one that provides service and support for the Town. Its nceds for funding and capital expenditures are primarily driven by the needs of other departmcnts. furthcrmore, the expcnditures are more of an ongoing nature, year in and year out, to support the day-ta-day operations of the Corporation. The nature of Information Systems is that ils work must bc spread throughout the year to adequately support the Town. It is for thesc reasons that we are seeking approval to expend funds prior to budget approval. It is requested that Council grant approval to Information Systems to spend on capital a maximum of $236,000, including taxes, between the months of January and June. This sum is required to upgrade aging equipment ($134,500), provide new equipment ($27,000) where necessary and to start the process of implementing new systems ($74,500) in both the Treasury and Culturc and Rccreation Departments. The implementation of further Treasury systems will be started aller June. System implementation is required to be started no later than March as each system usually takes between three and six months to fully implement. ATTACHMENTS: ~/~ ----- Gillis A. Paterson --- ../ GAP/md Copy: General Manager .-