1. Town of Tillsonburg 2012 Draft Budget January 23, 2012

2. 2012 Draft Budget Status • As of Council’s last meeting, January 9, 2012, the 2012 draft budget was $12,547,074, an increase of $527,066 from the 2011 budget or an increase of 4.38% in the requirement from taxation • Council requested further reductions. Staff are recommending further net reductions of $55,300. The attached spreadsheet summarizes those net reductions • If Council approves those reductions, the 2012 draft budget will be $12,491,774, an increase of $471,767 or 3.92% in the requirement from taxation or 3.49% after net growth is taken into account • 2012 draft operational budget = an increase of $540,016 or 4.8% • 2012 draft capital budget = a decrease of $68,249 or -8.6%

3. 2012 Draft Budget Status How did we arrive at this point?: • Fire Services Business Plan objectives identified Firefighter equipment, EM Mobile remote connection, air conditioner and a communications computer for a total additional 2012 budget request of $40,400 • Finance Business Plan objectives identified Year 3 of the grid implementation, Job Evaluation implementation, In View Workforce Management, Reward and Recognition, Customer Service kiosk, utility bill delivery savings, and a customer satisfaction survey for a total additional 2012 budget request of $172,635 • Community Services Business Plan objectives identified the Recreation Master Plan, Annandale baseball parking lot, energy tracking, water park inflatable, advertising savings, columbarium and ice resurfacer for a total additional 2012 budget request of $167,000

4. 2012 Draft Budget Status • Development and Communications Business Plan objectives identified Moving the Economy Ahead, Cultural marketing, Workforce Development survey, Airport Business development, Marketing, Records Management, Development manual, education and training, fee review, Development Officer, Community improvement, Communications projects, Urban Design, By Law review, Technology improvement for a total 2012 budget request of $307,000 • Operations Business Plan objectives identified Quarter Line Baldwin to Esseltine, Brock Street, Roads Patrol, Annual paving, Broadway/Concession signal upgrade, LED streetlights, Trailer Mounted Valve turner, One ton crew cab for a total 2012 budget request of $658,500

5. 2012 Draft Budget Status • Other net budget adjustments of ($171,719) brought us to our initial starting point on October 20, 2011of an increase in the requirement from taxation of $1,173,816 or 9.77% • Adjustments as recommended by staff and/or as directed and approved by Council throughout seven Open Council meetings reduced or are planning to reduce the capital expenditures by $202,250 and operating expenditures by $499,800 for a total current budget reduction of $702,050 or -5.8%

6. 2012 Budget: Opportunities and Risks • Risk: OPP contract negotiations not final • Risk: OMPF grant reduction not yet known • Risk: Fire Services labor agreements to be negotiated • Risk: Library revised budget request amount not yet known • Opportunity and Risk: Funding source for Rural Broadband and Highway 3 Business Park engineering is currently debt. Debt to be issued on these two projects is currently in the amount of $175,366

7. 2012 Budget: Impact to the Taxpayer • Using 2012 CVA amounts, the impact to the residential median taxpayer of a 3.92% increase in the requirement from taxation is estimated to be approximately $48.60 or 3.49% • While the November 2011 annual inflation rate is 2.9%, one focus of the budget is Economic Development growth. Those initiatives in the consolidated Development and Communications operating budget represent an aggregate increase of $250,224, or 46.3% of the total operating budget increase for 2012. This increase, plus the elimination of the Tillsonburg Levy revenue of $100,000 and the $180,568 increase in the Police budget relating to the anticipated OPP contract and a planned reduction in a PSU credit, results in accounting for an operating increase of $530,792 or 98% of the total operating budget increase

8. 2012 Draft Budget: Resolution • That the 2012 draft budget presentation be received as information; • Further that the 2012 draft budget in the amount of $12,491,774, a pre-growth increase of 3.92%, or 3.49% after growth, be brought forward to the Council meeting of February 13, 2012 for adoption.