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Town of Tillsonburg

Town of Tillsonburg. 2012 Draft Budget November 3, 2011. 2012 Draft Budget. Current 2012 draft budget is $13,193,824 an increase of $1,173,817 from the 2011 budget or an increase of 9.77% in the requirement from taxation. 2012 draft operational budget = an increase of $1,039,816 or 9.3%.

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Town of Tillsonburg

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  1. Town of Tillsonburg 2012 Draft Budget November 3, 2011

  2. 2012 Draft Budget • Current 2012 draft budget is $13,193,824 an increase of $1,173,817 from the 2011 budget or an increase of 9.77% in the requirement from taxation • 2012 draft operational budget = an increase of $1,039,816 or 9.3% • 2012 draft capital budget = an increase of $134,001 or 16.9%

  3. 2012 Draft Budget - Strategies How did we arrive at an operational increase of 9.3%: • No increase in operational reliance on reserves. Amounts consistent with 2011 • Increase in insurance costs of 2.96% or $10,500 • Benefit costs renewal, a 0% increase • Increase in Omers contribution rates and costs of $91,700 • Removal of Tillsonburg Levy, $100,000

  4. Strategies Continued • Assumed increase in OPP contract budget of 5% or $160,000 • Budget impact from OPP PSU of $66,333 • Completion of FT wage and salary grid placement of $112,000 • Continuation of PT wage grid placement of $14,000 • Job Evaluation wage adjustments of $50,000 • Implementation of market survey results in 2013, $0 for 2012 • Reduction of part-time labour of $34,000

  5. Strategies Continued • FT labour conversion from 35 hours to either 37.5 or 40 hours, net $27,000 • Rates and fees revenue increase, already reflected in Recreation and Development and Communications departmental budget, of $125,025.Further review and up date to the by-law is required • Additional IT related expenditures of $18,000 in Development and Communications • Additional FTE’s: 2 FTE in Development and Communications for $79,000, in Q1 and Q3; 1 FTE in Finance for $35,000 in Q3; 1 FTE in Water for $55,000 in Q1 to be funded by the County

  6. Strategies Continued • OMPF grant assumed to remain at $248,400. Reduction not yet known • Fire department additional revenue of $50,000 and decrease in labour of $28,000 • Initial Library 2012 budget increase request of $63,804. Not yet adopted by Library Board • Additional HLW costs of $37,000 • Net reduction in Recreation program revenue of $119,000 • Additional winter maintenance costs of $8,500

  7. Strategies Continued • Culture and Tourism special events and advertising increase of $20,100 • Net increase in P&I payments of $31,000. Includes $61,000 relating to new Fire truck

  8. Strategies Continued

  9. Strategies Continued

  10. Strategies Continued

  11. Strategies Continued

  12. Strategies Continued

  13. Strategies Continued

  14. Strategies Continued • Council support for the strategies utilized in the 2012 budget? • Questions and answers?

  15. Opportunities and Risks • Risk: OPP contract negotiations not final • Risk: OMPF grant reduction not yet known • Fire Services labor agreements to be negotiated • Opportunity and risk: Library budget request amount and budget treatment not yet known • Opportunity and risk: additional OPP PSU for 2011 exceeding the budget amount of $75,000 • Opportunity and risk: Fire department gave notice to it’s current customers for 2012 that there will be a dispatch rate increase • Opportunity and risk: the 2011 reserve balances remain low at $2,404,622 which includes development charges of $774,381

  16. Opportunities and Risks Continued • Opportunity and Risk: Implementation of the Master Culture and Recreation Plan • Opportunity and Risk: pre-budget Roads tender critical for obtaining best pricing • Opportunity and Risk: Sidewalk inspection program, however, could offset insurance claims • Opportunity and risk: changing the tax installment due dates • Opportunity and Risk: Sell assets: TSEC; Parks Shop; surplus land

  17. Opportunities and Risks • Opportunity: Invest in the future, technology (Road Patrol; laser fiche; ACR leverage;). Work smarter, not harder • Opportunity: Continued use of ACR improves customer service; streamlines business processes; and improves reporting • Opportunity: Improvement of marketing and communications to attract investment and interest; increase jobs • Opportunity: Cost efficiencies are found exceeding $25,000 • Opportunity: build reserves; pay down debt

  18. Impact to the Taxpayer • Using 2011 CVA amounts, before any anticipated growth or changes in the median residential assessment value, the impact to the residential median taxpayer of a 9.77% increase in the requirement from taxation is estimated to be approximately $136.17

  19. Debt Reduction Draft Plan • 2012 debt summary to be reviewed • Any annual surplus to go to reserves to pay down debt on maturity • Review all debt for opportunities to collapse, renegotiate and reduce interest charges • Sell surplus assets, with initial focus on residential lot sales • All net proceeds from sale of assets to go to reserves • Reserves used to pay down debt, beginning with TD float rate debt

  20. 2012 Draft Budget Summary • Management requests direction from Council on the next steps

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