2011 Draft Budget Overview to the Chamber of Commerce

1. 2011 Draft Budget Overview to the Chamber of Commerce March 16, 2011 Presenters: John Taylor, Regional Councillor Mike Mayes, Director, Financial Services/Treasurer

2. Budget Process Recap

3. Strategic PlanVision, Mission & Core Values

4. Strategic Plan Focus Areas The 5 Wells

5. The Town of Newmarket is Diverse and Complex • 981 full and part-time employees • $110 million budget • 212 km of roads, 290km of watermains, 50 km of trails, 365 hectares of parks • Estimated replacement value of capital assets = $1.1 billion • Servicing a population of 84,351 in 27,350 households • Managing many lines of business on a day-to-day basis

6. The Town of Newmarket is Competitive • Comparative tax rate – 2010 BMA study • Customer satisfaction • 96% of residents are satisfied living in Newmarket • nearly 80% are satisfied with the services received from the Town • Newmarket is ranked 15th out of 179 Canadian cities and towns and best place to live in York Region

7. 2010 Tax Comparators

8. 2010 Tax Comparators

11. 2010 Tax Comparators

12. Responsible Financing Strategies • Asset Replacement Fund (ARF) • $12 million annually for $1.1 billion in assets • The Town of Newmarket Debt Policy • limit of 10% (currently 6.5%), 85% of which is financed from non-tax sources • Service Pricing Policy • 5-year Forecast • Service Reviews

13. Partnerships (Government-to-Government, Other) N6 Waste Management Customer Service Centre/Region, etc. N6 training cooperative Business Optimizing 2010 Surplus Gapping, Hiring Delays Outsourcing Sponsorships Service Pricing Policy Trail Levy Recreation Surcharge Responsible Policies (Debt, Benefits, Cola, etc.) Maximizing opportunities for cost recovery (e.g. VIVA) Ongoing service level, department and org structure reviews Remaining ‘opportunity aware’ and acting on these as appropriate Efficiency & EffectivenessMeasures / Actions / Innovations

14. Internal & External Assessment Internal & External Assessment • Continuous Improvement Reviews • Let’s Make it Happen (2002) • Results Based Budgeting – Service Level Review (2006) • Call to Action (2009) • Service Delivery Review – Business Planning & Budget Process (2010) • Human Resources Department Review (2004) • Community Services Commission Organizational Review (2007/08) • Service Alignment Review (2009) • Community Surveys (2002, 2005, 2010) • Budget Open House (2008, 2009, 2010) • IT Review (2007) • PIC’S (e.g. Magna, Operations Centre, CUSP, etc.) • Fees & Charges Review

15. 2011 Budget Priorities • Strive to provide quality programs and services to maintain a high level of community satisfaction. • Provide for the hiring of 20 new Firefighters to meet growth and ensure public safety. • Maintain a responsible and affordable tax levy to respond to current and future needs. • Incorporate carry-over obligations to accommodate growth and new facilities. • Encourage public engagement and consultation in the budget process through enhanced communication efforts.

16. 2011 Drivers & Challenges

17. Budget Challenge

18. Budget Challenge

19. Budget Reductions

20. Budget Reductions cont. * To be reviewed by JCC and Library Board.

21. Budget Reductions cont.

22. Further Budget Reductions

23. Risk and Impact on Future Years • De-annualization deferring 1.45% tax increase to 2012 • additional fire staff • operating costs for CUSP • other growth-related initiatives • Capital financing is being kept at the 2010 levels • asset replacement fund had not been increased since 2009

24. Breakdown of Tax Increase Under Consideration (Preliminary 1st Draft) • CYFS budget has been reviewed by JCC • Library budget Growth and Enhancement items have been reviewed by the Board. Town to update Library budget

25. How our Tax Dollar is Spent Notes: • $113 / month • $1366 / year

26. 2011 Residential Property TaxUnder Consideration • Regional Municipality of York is projecting a tax increase of 1.94%. Tax shifts due to variable assessment growth in the province could lower the increase applicable to Newmarket in 2010 by 0.5%. The Region continues to benefit from uploading to the Province. Last year this has allowed them to reduce their tax increase by 3.3%. • School Board increase is based on historical trends. Tax shifts due to variable assessment growth in the Region could lower the increase applicable to Newmarket in 2010 by 0.24%. • If the 2011 tax shift is the same as in 2010, the all-in tax increase would be 2.17%.

27. 2011 Commercial Property Tax Under Consideration Property taxes per square foot for Neighbourhood Shopping from the 2010 BMA Study

28. 2011 Industrial Property Tax Under Consideration Property taxes per square foot for Standard Industrial from the 2010 BMA Study

29. Draft 2011 Capital Budget • New Gross Expenditures = $25.5 million • Spending will be limited to available funding – ARF, other reserve funds, DC’s and Capital Financing from Operations. • There has been no increase in these funding sources based on the current operating budget. • 2010 capital budget carryovers • Funding for incomplete 2010 projects and commitments are carried over into 2011 if still necessary. • Council has already approved them and funding has been allocated. • Accounting and Policy Changes

30. Public Consultation & Communication Plan • To engage the public in the budget process. • To better inform the public of the challenges facing Newmarket and innovative approaches Newmarket is taking to protect the financial sustainability of the Town. • To demystify the budget and make it a more understandable and approachable process.

31. Public Consultation & Communication Plan

32. Public Consultation & Communication Plan

33. 2011 Budget Meeting and Events Schedule

35. Thank you & Questions