HomeMy WebLinkAboutCS 12/01
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REPORT TO COUNCIL
FROM:
Gillis A. Paterson
Director, Corporate Services & Treasurer
DATE: May 16, 2001
REPORT NUMBER: CS 12-01
SUBJECT: 2001 Current and Capital Budgets
RECOMMENDATION:
The Budget Committee recommend to Council that:
1. a) the 2001 Gross Current Budget of $46,213,333, including capital expenditures from
current revenues in the amou~t of $1,679,220, with estimated revenues of$20,015,557, a
2000 surplus of $110,000, debt financing of $1,458,960, assessment growth of $434,000
and a net levy of$24,194,816 resulting in an increase in the Tax Rate of9.8 per cent be
adopted as presented;
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b) the Director, Corporate Services & Treasurer present the 2001 Property Tax Rates for
adoption by Council when further information from the Region of Durham and the
Province of Ontario is available;
c) the two year Current Budget Forecast (2002 - 2003) be endorsed for financial planning
purposes.
2. a) the 2001 Capital Budget with a Gross Expenditure of $6,674,995 be adopted as
presented;
b) the following capital financing sources be approved as presented in the 2001 Capital
Budget:
Transfer from Current Fund to Capital
Fund $1,679,220
Transfer from Capital Equipment Reserve 1,000,085
Transfers from Reserve Funds
- Community Facilities
- Development Charges
- Parkland Development
- Capital Works Projects
376,498
313,432
1,271,800
400,000
Debt
Lease
Donations
1,458,960
95,000
80,000
$6.674.995
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c) the Four-Year Capital Budget Forecast (2002-2005) be endorsed for financial planning
purposes;
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Report to Council CS 12-01
Date: May 16, 2001
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Subject: 2001 Current & Capital Budgets
Page 2
3. a) internal debt financing be approved for the projects identified in the 2001 Capital Budget
in the amount of: $958,960 for a period not to exceeding 10 years; and, $500,000 for a
period not exceeding 20 years;
b) projects identified in the 2001 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;
4. the Director, Corporate Services &Treasurer be authorized to make any changes or undertake
any actions necessary, in order to ensure the budget, the increase in taxes and the tax billing
process is completed;
5. any surplus current operating funds at year end 2001, in excess of$110,000 be transferred to
the Rate Stabilization Reserve;
6. effective June 1,2001 the rate of reimbursement per kilometer (kID) traveled for business
purposes in personally owned vehicles be increased from 40.4 cents per kID to 43.7 cents per
kID for the first 5,000 kID and remains at 40.4 cents for each kID thereafter; and,
7. the appropriate staff of the City of Pickering be given authority to give effect thereto.
ORIGIN:
Director, Corporate Services & Treasurer
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AUTHORITY:
The Municipal At, R.S.O. 1990, as amended
FINANCIAL IMPLICATIONS:
If the Budgets are adopted as presented there will be a 9.8 per cent increase in the City's portion
of the property tax bill. Costs associated with the increase in the per kID rate of reimbursement of
business travel will be absorbed within the 2001 Current Budget.
EXECUTIVE SUMMARY:
Not Applicable
BACKGROUND:
The content of the Recommendations contained in this report are consistent with those put forth
and adopted by Council in previous years.
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Report to Council CS 12-01
Date: May 16, 2001
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Subject: 2001 Current & Capital Budgets
Page 3
As has been the case for the last few years, the 2001 Property Tax Rates and Levy By-Law will
be presented at a later date when more information is available from the Province and the Region
has decided upon the tax policies of the day.
In last year's report Council also approved the following recommendation:
"the Treasurer be authorized to review the rates of reimbursement, annually and include any
adjustments in the Annual Current Budget." A review has been undertaken and an adjustment is
being recommended.
The adjustment to the per kIn rate of reimbursement is to reflect current costs, especially market
conditions for gasoline and oil. It also reflects Revenue Canada guidelines in regards to a
reduction in the rate of reimbursement after the fIrst 5,000 kIn in any given year. Any staff who
have not reached the 5000 kIn limit on or before June 1, 2001 will be paid at the new rate of 43.7
cents per kIn from June 1 onward until the 5000 kIn is reached. Upon reaching the limit the
reimbursement will be reduced to the current rate of 40.4 cents per kIn. For those staffwho have
exceeded the 5000 kIn limit on or before June 1,2001, their rate ofreimbursement will remain
unchanged at the current rate of 40.4 cents per kIn.
This approach represents a phase-in of the differentiation of rates under Revenue Canada
guidelines for travel under and over 5,000 kIn per year. The 40.4 cents per kIn for over 5,000 kIn
will stay in effect through subsequent rate adjustments until the level of differentiation, currently
15 per cent, is reached. This cost adjustment is anticipated to be absorbed within the 2001
Current Budget.
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ATTACHMENTS:
Not Applicable
Prepared / Approved / Endorsed By:
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Gillis A. Paterson,
Director, Corporate Services & Treasurer
GP:vw
Recommended for the consideration of Pickering
City Council
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