2009 Operating Budget February 11, 2009

1. 2009 Operating Budget February 11, 2009

2. Presentation Overview • Background • Consolidated Budget & Challenges • 2009 Budget Risks • Multi-Year Financial Plan • Questions • Recommendations • Next Steps

3. Vision “We will guide the Town towards achieving a community that provides the quality of life we want for our children” Our Focus: Your Future

4. Strategic Direction 4 Pillars • Development and Land Use • Economic and Business Development • Financial Stewardship and • Infrastructure 2007 & 2008 Built Momentum - 2009 & 2010 Stay the Course Budget is a means to accomplish goals

5. Stay the Course Strategic Plan - reduced dependency on gaming • gaming support to base budget 2007 - $530,000 = 3.8% of levy 2008 - $325,000 = 2.0% of levy 2009 - $168,000 = 1.0% of levy 2010 - nil

6. Stay the Course Strategic Plan - minimize infrastructure gap • Sewer reserves reached sustainable level in 08 • Water reserves reach sustainable level in 09 • Facilities, Fleet & Storm reserves • 2008 - $347,000 = 2.2% of levy • 2009 - $450,000 = 2.8% of levy • 2009 Gaming allocations to reserves of $600k-800k (risk)

7. Stay the Course Reserves per household ‘moderate risk’ • ‘high risk’ in 2006 • 2009 forecast - $14.6 million Ongoing assessment of transfers to Reserves • levy transfers to capital reserves of $2.9m • PSAB compliance tells us assets ‘deteriorating’ at rate of $5.3m per year – risk to be assessed

8. Stay the Course Strategic Plan - pursue external financing • Most programs supplement rather than substitute Town funding • $4.4 m of Fed/Prov. Grants 09 capital • Gas tax – incremental to Town base spending • BCF – 3-way cost sharing with Feds & Prov. • 2009 Federal Budget • $4 billion Infrastructure Stimulus Fund (cost sharing) • $2 billion in low-cost loans

9. Background - Forecast for 2009 Appendix A - Section 1 Increase over 08 Strategic objectives 3.6 % Other base changes 0.7% Total forecast 4.3%

10. Background - Forecast for 2009 Appendix A - Section 1 Other base changes: • 0.7%, $108,000 increase • Inclusive of wage increases (no new staff) • No new programs • Revenue increases ($47k) were projected for User Fees and Interest Rates • 2009 reality – these revenues are decreasing • Mitigate impact of Nordic reassessment

11. Consolidated Budget Overview Appendix A - Section 1 Nordic appeal outstanding since 2005 • Woodbine decision Feb/08 • Oct/08 - 2009 budget guidelines - Staff directed to mitigate impact • Shift in tax burden from commercial to residential class has on impact on tax bill before we even get started.

12. Consolidated Budget Overview Appendix A - Section 1 In December we were able to quantify full impact:

13. Consolidated Budget Overview Appendix A - Section 2 • Staff provided sustainable savings of $77,200 • Thorough review of operations • On going savings with minimal impact on service levels • Analysis of utilities, supplies/maintenance costs • HR consulting and legal fees • New debt servicing costs benefit from interest rate reductions $23k

14. Other Revenue Challenges – Interest Rates Appendix A - Section 3 Trend over 15 month period

15. Other Revenue Challenges – Permit & User Fees Appendix A - Section 3 Permit Fees • CDS Report to Council in Dec/08 • 2008 YTD shortfall of $76k • Economic challenges User Fees • Detailed review, January report to Council • Fees have not kept pace with costs or levy

16. Staff Recommendations Appendix A - Section 4 • User fees • Index fees for $34k • Permit fees • Index fees for $16k • EDTC GTA campaign • Funding from $45k to $20k • Other • See confidential memo

17. Summary of Appendix A $ % FORECAST (section 1):(in thousands) of Levy Increase due to Strategic Initiatives 559 3.57% Forecasted Revenue increases ( 47) -0.30% Forecasted Expenditure increases 155 1.00% $667 4.26% BUDGET: Expenditure Reductions (section 2) ( 100) -0.64% Revenue Reductions (section 3) 326 2.08% Staff recommendations (section 4) ( 102)-0.65% TOTAL $7915.05%

18. Summary of Appendix A Local rate impact 5.69% Combined rate impact* 3.78% Median monthly impact $7.05 * Assumes Police budget increase of 4.7%

19. Summary - Impact to Residents • Annual property taxes based on home assessed at $138,000 in 2008 reassessed at $145,900 in 2009 2009 2008 Town $ 801 $ 757 Region $1,102 $1,066 Education $ 368 $ 364 $2,271 $2,187 $ Change $ 84 % Change 3.78%

20. Community Requests –For Council Consideration Appendix B • 1812 • Santa Clause Parade • BIA watering • Communities-in-Bloom Revised median monthly impact $7.05 $7.59

21. 2009 Budget Risks • Interest income • Interest income – further rate reductions could mean further shortfalls • Regional Inter-Municipal Specialized Transit • Region’s costs exceed initial model costs • New 2008 reassessment for 2009 • Risk of high reassessments

22. Multi-Year Financial Plan-Forecast for 2010 (in thousands) 2008 Forecast for 2010 $17,114 Interest Income decline $ 281 Insurance levy $ 63 OMPF elimination $ 88 User Fees & Permit Fees ($ 51) Revised Projection for 2010 $17,495 Opportunities to mitigate 5.7% gross expenditure year over year increase: • Assessment growth • Uploading $5.4m in Regional costs • Other

23. Questions

24. Recommendations • Approval of 2009 Operating Budget and general levy • Approval of gaming allocations in Appendix C • Option 1 as forecast including $250k to EDTC or • Option 2 revised for allocation for Community Health and Wellness Coordinator contract

25. Next Steps • Water and Sewer Public Information Center March 3 • Adoption of Water & Sewer Rates March 9 • Operating and Capital Budget By-law March 9 • Distribution of 2009 budget in April