2013 Budget

1. 2013 Budget Municipality of Port Hope

2. Agenda • Budget Process • Trends and Challenges • Operating Budget • Reconciliation • Department Highlights • Staff Complement • Community Grants • Capital • Carry Forward Projects • 2013 Projects • Reserves • Capital Forecast • Next Steps • Questions of Mngt Team • Community Grants

3. Budget Process September October November Departments prepare and submit Capital Management Team Review/Prioritization of Capital Departments prepare and submit Operating Management Team Review of Operating Budget Presentation to and Review by Budget CommitteeRecommendation to Committee of the Whole Review and Approval by COW and Council December January February

4. Trends and Challenges - Past • Municipal Levy increase < CPI • Efficiency improvements • Energy retrofits • Department reorganization • Service consolidation • One-time revenues • Reserves for operating • Prior-year Surplus • Reduction in levy for capital • 19% decrease since 2009 * Municipal Purpose Levy does not include Police, Library, County and Education levies

5. Trends and Challenges - Future • Strategic Financial Plan • Identify existing risks, threats (underfunding capital) • Identify long-term goals • Develop strategies to address risks/threats and achieve long-term goals • Asset Management Plan • Provincially mandated • Identify maintenance/repair/replacement for assets • Develop financial strategy to address asset mngt activities • Service Delivery Review • Identify opportunities for new revenue/reduced costs (service delivery level and/or delivery adjustments)

6. Operating Budget • 2013 Levy = $15,005,300 - increase $713,900 (5.0%) *Note – new positions include temporary contract Finance Clerk and part-time parks hours required to maintain new/additional parks

7. DepartmentHighlights Non-Departmental • Revenue & Expense not specific to departments; penalty/interest on taxes, provincial grants, retiree benefits; Committees of Council, Community Grants. • Decrease in: • Provincial Grant • PILs • Prior Year Surplus • Increase in: • Interest Exp • COLA • Gapping savings

8. Department Highlights Council • Represents salaries, training, mileage, memberships etc. for Council • Overall decrease in budget: • Salaries based on 2012approved rates • Mileage based on historicaltrends

9. Department Highlights Admin. & Corporate Services • CAO, Corporate Services, HR, Communications • Increase in budget • Step increases • Software license renewals • Consolidation of postage • Consolidation of legal • Consolidated costs show reduction in other departments

10. Department Highlights Economic Development • Economic Development and Tourism; • Increase in budget • Step increases • Telephone

11. Department Highlights Finance • Increase in: • Salaries for temporary contract Finance Clerk • Step increases

12. Department Highlights Fire & Emergency • Fire Admin, suppression, prevention, stations, emergency planning • Increase in budget: • Debt for new firetruck • Loss of EMS lease • Decrease in budget • Fire Marque program revenue • Various expense reductions

13. Department Highlights Parks, Recreation & Culture • Rec programs, aquatics, youth programs, JBSC, Canton Municipal Office, RCAC and TPRC, various parks, cemeteries and the marina • Increase in budget: • Reduction in Prov. Grant • Step increases • Part-time salaries to maintainnew parks

14. Department Highlights Planning & Development • Planning Services, Parking Enforcement and Building Permits and Inspection Services • Decrease in budget • Transfer of legal to Corp Services • Increase in revenue

15. Department Highlights Works & Engineering • Roads, sidewalks, street lighting and traffic signals, crossing guards, transit and engineering • Increase in budget: • Step increases; Union contract • Reduction in internal recoveries; partially offset by internal charges • Reduction in utilities

16. Department Highlights Water & Sewer • WTP and STP; water distribution; sanitary sewer • No levy impact; funded by user fees and future revenues • Water programs showing netsurplus – will pay forprevious unfunded projects • Sewer programs showingdeficit – will be funded fromfuture revenues

17. Department Highlights Police Services • 2013 Budget (as submitted by Chief McAlpine) has not been approved by the Police Service Board hence is a draft only at distribution date. • Police Services Board will be developing a thoughtful, big picture strategy that will include financial and human resources data and is tentatively scheduled to be presented to Council at theFebruary 12, 2013 Police ServicesBoard Meeting. • Police Services Board to confirman invitation to Council.

18. Department Highlights Port Hope Public Library • Library administration plus MJB and Garden Hill branches • Budget Increase: • Reduction in grant funding • Increase in cleaning contract • Partially offset by costreductions in other areas Note – Legal cost estimate of $4,000 was consolidated with all Legal under Corporate Services and will be reallocated back to Library after budget finalization

19. Staff Complement

20. Community Grants • 17 applications (9 meet criteria, 8 don’t) • Requests total $226,905 • Eligible applications total $133,000 • Ineligible applications total $93,905 • 6 applicants did not receive funding in 2012 • 2012 grants funded = $153,500 and were funded $41,500from Hydro Interest, $112,000 from tax levy

21. Potential Increases • 4 submitted • Tree Advisory Committee request for mileage and training dollars • HBIA – request increase based on anticipated increase in street cleaning based on increased contract scope • Library Board request for training dollars • W&E request for new program for sewer lateral clean-out funding – mayreduce number of backup claims

22. Capital • Same approach as previous years • Z, A, B, C, D priority • Added consideration of Annual, Commitment or Infrastructure • Carry-forward 36 projects at $5.3 million • 2013 projects • 27 projects with no levy impact • 9 projects with future impact • 51 A-priority projects • 6 projects for Council decision • 2 projects suggested for deferral

23. Capital cont’d • 2012 Capital Levy + 1.5% inflation = $888,100 • 26 projects fit within this threshold • Of these 26 projects, Annual, Commitment and Infrastructure projects =$801,000 • Little capacity for new initiatives • H&S, Infrastructure and projects per master plans not accommodated within existing funding levels • DRAFT SFP indicates capital levy should be $2.7 by 2022 • To achieve this requires $183,000 increase annually compared to 2012 levels • At SFP funding level ($888,100 + $183,000) could fund additional seven projects

24. Capital Reserves • Listing of capital reserves as Appendix 3 • Estimated opening balance (pending 2012 year-end) $19.3 million • Mostly in DCs, Fed Gas Tax, Screening, Hydro Sale Proceeds, Building and Equipment • Estimate $2.1 revenues • Estimate $9.2 million expenditure • $786,000 of expenditures beyond typical levy funding threshold – won’t be spent if projects not approved

25. Capital Forecast • Four-year forecast • Preliminary list of projects 2014 – 2017 • More comprehensive in early years; less detail and few projects in later years • Will be populated more as AMP is developed • Provided for information • 2013 projects not funded will move to 2014 and considered during 2014 budget preparation

26. Next Steps • Management Team – available for questions on Operating and Capital – 2:00 pm • Budget Committee discussion of Operating and Capital • Direction to staff re additional information • Establish capital levy funding threshold • Budget Committee discussion of Community Grants • Questions on submissions • Identify who to invite for questions • Recommendation of Budget to GGF • Approval of Budget