2014 budget overview - cornwall, ontario · the 2014 budget for the city of cornwall can be...
TRANSCRIPT
Introduction
Page 2
The 2014 Budget for the City of Cornwall can be summarized as follows:
This document has been prepared with a tax levy increase of 1.76% or $986,904. There is a proposed change in the tax ratio for the commercial class.
The ratio would be lowered to 1.9407 from 1.9650.
As a result of the 1.76% increase in the tax levy and the change in the commercial ratio, the residential tax rate would be reduced by 4.0%. This would mean the average residential property would have no increase in their municipal taxes in 2014. This is due to changes within assessments as well as shifts between tax classes. Capital projects total $5,776,000 versus $7,343,900 in 2013. With $1,627,100 ($1,500,600 in 2013) funded from the tax base. There is an additional $863,000 of capital which is proposed to be financed.
2013 2014 Variance
City Departments (net operating) 31,944,531 33,201,180 1,256,649
Protective Services (police,fire, EMS) 27,844,947 28,567,785 722,838
Non Departmental:
OMPF (Equalization Grant only) (5,740,000) (5,486,505) 253,495
Federal Gas Tax (2,819,952) (2,683,588) 136,364
Investment Income (660,000) (560,000) 100,000
Supplementary Taxation (1,812,000) (524,000) 1,288,000
Growth - New Assessment 0 (3,439,300) (3,439,300)
Allowance for Write Offs 767,000 1,303,000 536,000
Great West Life - Benefit Refund 0 (249,000) (249,000)
Other 1,051,750 1,209,946 158,196
Sub Total (9,213,202) (10,429,447) (1,216,245)
Net Operating Budget 50,576,276 51,339,518 763,242
Capital (tax base funded) 1,500,600 1,627,100 126,500
Community Agencies 4,088,617 4,185,779 97,162
Tax Levy Requirement 56,165,493 57,152,397 986,904
1.76%
Introduction con’t
Page 3
Ontario Municipal Partnership Fund (OMPF)
Page 4
2013 2014 Reduction
Equalization Grant $ 5,740,000 $ 5,062,900 $ 677,100
Transitional Assistance $ 2,707,400 $ 2,117,400 $ 590,000
Total $ 8,447,400 $ 7,180,300 $ 1,267,100
The City’s funding from the grant component of the Ontario Municipal Partnership Fund
(OMPF) has been reduced by $1,267,100 for 2014.
OMPF has been redesigned and will no longer provide grants for social programs
which has benefited the City of Cornwall in previous years.
OMPF will now provide support for the following areas:
1. Assessment Equalization
2. Northern Communities Grant
3. Rural Communities
4. Northern and Fiscal Circumstances Grant
It is important to note that the “Transitional Assistance” indicated above will most likely
be reduced in 2015 or be eliminated entirely.
Operating and Capital Summary
Page 5
'13 Budget '14 Submission Variance
Revenue
Taxation $56,165,493 $57,152,397 $986,904
PIL & Suppl. Taxation $3,247,187 $5,440,457 $2,193,270
Operating $89,152,884 $91,186,051 $2,033,167
Capital $5,843,300 $4,148,900 -$1,694,400
Total Revenue $154,408,864 $157,927,805 $3,518,941
Expenditures
Operating $125,664,753 $130,275,049 $4,610,296
Capital $7,343,900 $5,776,000 -$1,567,900
Tfr Community Agencies $4,088,617 $4,185,779 $97,162
Police Services $17,350,165 $17,734,388 $384,223
Internal Transfers -$38,571 -$43,411 -$4,840
Total Expenditures $154,408,864 $157,927,805 $3,518,941
1.76% Levy increase. Increase includes taxation now on the 2014 roll of $3,439,300 (growth) a decrease of $1,288,000 in supplementary taxation for 2014.
Operating Summary
'13 Budget '14 Submission
Total Revenue (excluding taxation) $92,400,071 $96,626,508
Less:
Expenditures -$125,664,753 -$130,275,049
Tfr Community Agencies -$4,088,617 -$4,185,779
Police Services -$17,350,165 -$17,734,388
Internal Transfers $38,571 $43,411
Total Expenditures -$147,064,964 -$152,151,805
Total Operating financed by taxation -$54,664,893 -$55,525,297
% change 1.57%
$ change $860,404
Page 6
Capital Summary
'13 Budget '14 Submission
Revenue
Federal Gas Tax $4,245,000 $3,060,000
EMS Ambulances/Vehicles (Reserve) $560,000 $498,000
Provincial Gas Tax (Transit) $182,500 $240,000
United Counties (GSDL Capital) $90,800 $90,900
Net Reserves $765,000 $260,000
Less:
Gross Capital Costs $7,343,900 $5,776,000
Total Capital financed by taxation -$1,500,600 -$1,627,100
% increase 8.43%
$ increase $126,500
Page 7
Capital Summary Gross
Department Capital TAX BASE GAS TAX RESERVES COUNTIES FINANCING
FINANCIAL SERVICES 80,000 80,000
GLEN STOR DUN LODGE 303,000 212,100 90,900
FIRE SERVICES 145,000 145,000
EMERGENCY MEDICAL SERVICES 498,000 498,000
MW FLEET 718,000 718,000
MW FACILITIES 265,000 60,000 205,000
TRAFFIC SIGNALS & STREETLIGHTING 375,000 375,000
TRANSIT SERVICES 240,000 240,000
TRANSPORTATION CAPACITY 275,000 100,000 175,000
ROAD NETWORK 2,200,000 100,000 2,100,000
STRUCTURES 95,000 70,000 25,000
ACTIVE TRANSPORTATION - SIDEWALKS 185,000 185,000
ACTIVE TRANSPORTATION - BICYCLE INFR. 385,000 385,000
SOLID WASTE 400,000 210,000 190,000
PARKING 40,000 40,000
PARKS & RECREATION SERVICES 435,000 420,000 15,000
FUNDING SOURCE
TOTAL 6,639,000 1,627,100 3,300,000 758,000 90,900 863,000
Page 8
Operating Revenue (excluding Police Services)
'13 Budget '14 Submission
PIL & Suppl. Taxation $3,282,187 $5,460,457
Provincial $57,089,368 $58,339,662
Federal $2,886,652 $2,716,288
Municipal $7,256,178 $6,978,299
User Fees $16,936,708 $16,704,386
Internal Tfr $3,880,647 $4,916,225
Reserves $1,068,331 $1,511,191
Subtotal $92,400,071 $96,626,508
% increase 4.57%
$ increase $4,226,437
Major variances (000s):
$3,439 2013 Growth
$2,064 Provincial Funding
$1.8M Income Mtce
$745 Child Care
($416) CHPI
$1,027 Direct Recoveries
$863 Tfrs within S&H Services
$ 443 From Reserve
$706 Social and Housing Reserves
$108 Election Reserve
$ 87 EMS Defib. LTD
($ 60) 2012 Surplus utilized in 2013
($375) Building Reserve
$ 346 GSDL Revenue
$ 249 GWL Recovery
($1,288) Supplementary Taxation
($1,267) OMPF
($ 278) United Counties
($ 207) Tipping Fees
($ 165) Recycled Materials
($ 100) Inv. Income
Page 9
Operating Expenditures (excluding Police Services)
The departmental requests resulted in a year over year expenditure increase of $4,625,296. This represents a 3.68% increase in expenditures from the 2013 approved budget
'13 Budget '14 Submission
Salary $51,376,908 $52,424,065
PoG $8,227,998 $8,263,962
S&R $23,821,068 $25,848,807
Financial $42,203,779 $43,718,215
Total $125,629,753 $130,255,049
% increase 3.68%
$ increase $4,625,296
Salary and Benefits 2.04% or $1,047,157
Purchase of Goods 0.44% or $35,964
Services and Rents 8.51% or $2,027,739
Financial
3.59% or $1,514,436
Page 10
Salaries & Benefits
(excluding Police Services)
'13 Budget '14 Submission
S & B $51,376,908 $52,424,065
% increase 2.04%
$ increase $1,047,157
Major variances primarily relates to increases/(decreases) in (000’s):
• $1,059 Full-Time $900 Contractual Obligations
$158 Increase in FTE
• $ 24 Part-Time
• $ 43 Overtime $ 25 GSDL
$ 17 EMS
• ($ 115) Benefits $143 OMERS (there was rate increase in 2014)
$136 Benefits (includes CPP, EI, EHT)
($392) Benefits savings (including Dental,
Medical, Vision, LTD, etc.)
• $ 39 Election Staff
Page 11
Purchase of Goods Comparison (excluding Police Services)
'13 Budget '14 Submission
PoG $8,227,998 $8,263,962
% increase 0.44%
$ increase $35,964
Major variances primarily relates to increases/(decreases) in (000’s):
$78 Utilities
$54 Sand, Salt, Landscape Material
$19 Food Provisions
$17 Uniform, Clothing, Safety Supplies
($52) Gasoline & Fuel
($81) Parts, Accessories, Repairs
Page 12
Services & Rents Comparison (excluding Police Services)
'13 Budget '14 Submission
S&R $23,821,068 $25,848,807
% increase 8.51%
$ increase $2,027,739
Major variances primarily relates to increases/(decreases) in (000’s):
$1.75M Social & Housing Services $616K Social Housing - CHPI
$1.1M Child Care
$117K Vehicles Municipal Services
$55 Leased vehicles
$63 City Internal Rental Charge
City fleet managed by MW, financing
charges for LTD for vehicles and equipment.
$105K Computer Mtce Agreements $17K upgrade FIRE FDM software (training module)
$ 46K Postage
Page 13
Financial Comparison (excluding Police Services)
'13 Budget '14 Submission
Financial 4,377,122 5,230,282
SSS Tfr 19,938,007 21,399,995
SH Tfr 12,812,543 12,009,487
Reserves 5,076,107 5,078,451
Total 42,203,779 43,718,215
% increase 3.59%
$ increase 1,514,436
Major variances primarily relates to increases/(decreases) in (000’s):
• $ 591 Social and Housing Programs $254K CHPI
$346K CAHC
$1.4M Assistance for Unemployed transferred from SH to SSS
$ 536 Tax Write Offs
$ 140 Hardware/Software charge backs
• $ 125 Long Term Debt $24K Fire Vehicles
$87K EMS Defibs
$ 90 Tax Increment Grants
($ 59) Waste Credit $105K budgeted in 2013; $46K in 2014
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General Gov‘t 8%
Social & Family Services 10%
Infrastructure & MW 14%
Solid Waste 2%
Transit Services 4%
Planning & Building Services 2%
Economic Development 1%
Parks and Recreation 10%
Community Agencies 6%
Emergency Medical Services 3%
Fire Services 14%
Police Services 26%
Page 15
2014 Summary by Department
Operating and Capital
Budget 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EMS 631,551 1,547,074 1,362,670 1,543,869 1,411,132 1,674,427 1,919,013 1,984,874 2,044,413 2,094,876
Fire 5,454,069 6,083,144 6,170,943 6,753,890 7,036,676 7,204,948 7,542,941 7,913,909 8,448,356 8,736,507
Police 12,742,278 13,274,138 13,967,348 14,287,378 14,701,519 15,470,795 16,191,396 16,575,144 17,350,165 17,734,388
Total 18,827,898 20,904,356 21,500,961 22,585,137 23,149,327 24,350,170 25,653,350 26,473,927 27,842,934 28,565,771
Year over Year Increase 8.33% 11.03% 2.85% 5.04% 2.50% 5.19% 5.35% 3.20% 5.17% 2.60%
Tax Levy 47,355,196 48,415,949 48,974,228 50,306,438 50,301,854 50,601,854 52,437,847 53,721,264 56,165,493 60,591,697
Budget as a percentage
of Tax Levy 39.76% 43.18% 43.90% 44.90% 46.02% 48.12% 48.92% 49.28% 49.57% 47.14%
Protection to Persons & Property
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2013 2014 Increase
Tax Levy 56,165,493 60,591,697 4,426,204
Combined Budgets for PPP 27,842,934 28,565,771 722,837
49.57% 47.14%
MPAC Phased In Assessment 2013 – 2016 (Residential)
MPAC has completed an assessment update for 2012 market values of properties throughout the province. The 2012 market values will be phased in over the next four years from 2013 to 2016. For example: Average Value 2008 2012 Single Family $139,000 $163,000 16.18% Semi-Detached $121,000 $148,000 21.85% Condominiums $130,000 $151,000 15.90%
The average residential property in Cornwall has increased by 18%. The provincial average is 17%.
The average residential property will experience a phased in increase of 4.5% per year for the years 2013 through to 2016.
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In a comparison of assessed values for commercial properties from 2012 to 2013 (as a result of the market update completed in 2012):
53 properties had a decrease in assessed value
255 properties had an increase between 0 – 2%
146 properties had an increase between 2 – 4%
88 properties had an increase between 4 – 6%
69 properties had an increase between 6 – 8%
51 properties had an increase between 8 – 10%
262 properties had an increase greater than 10%
MPAC Phased In Assessment 2013 – 2016 (Commercial)
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Distribution Centres & Assessment Appeals
• Prior to 2013, MPAC had applied a Market Adjustment Factor (MAF) to the assessments for distribution centres across Ontario.
• The MAF reduced their assessed value by 40%.
• In 2013, the MAF was eliminated.
• The distribution centres assessments went up between 86 – 96% on the 2012 CVA to be phased in over the 4 year period 2013 to 2016.
• The 3 major distribution centres in Cornwall have filed appeals against their assessed values.
• The combined 2012 CVA value for these three properties is approximately $271 million.
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Allowance for Appeals on Assessment Large Commercial Properties
Cummulative
2013-2016 Estimated
Estimated Taxes Allowance
Current MPAC Assessment $25,541,316 $0
10% Reduction in Assessment $23,334,324 ($2,206,992)
20% Reduction in Assessment $21,127,331 ($4,413,985)
30% Reduction in Assessment $18,920,339 ($6,620,977)
40% Reduction in Assessment $16,713,346 ($8,827,970)
A 10% reduction in assessed value would result in a write off of $2.2M in tax revenue for the four years (2013-2016). In 2014 an additional $500,000 has been budgeted as an allowance for appeals on commercial properties. There is also $500,000 in a Tax Stabilization Reserve. Additional allowances will likely be required in 2015 & 2016.
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Tax Ratios by Class
Class Ratio 2014 2013 Change
Residential 1.0000 0.01450917 0.01511323 96.00% -4.00%
Multi-Res 2.3492 0.03408494 0.03550401 96.00% -4.00%
Commercial 1.9407 0.02815795 0.02969751 94.82% -5.18%
Industrial 2.6300 0.03815912 0.03974781 96.00% -4.00%
Pipeline 1.5217 0.02207860 0.02299781 96.00% -4.00%
Farm 0.2500 0.00362729 0.00377831 96.00% -4.00%
Class Ratio 2014 2013 Change
Residential 1.0000 0.01444571 0.01511323 95.58% -4.42%
Multi-Res 2.3492 0.03393587 0.03550401 95.58% -4.42%
Commercial 1.9650 0.02838583 0.02969751 95.58% -4.42%
Industrial 2.6300 0.03799223 0.03974781 95.58% -4.42%
Pipeline 1.5217 0.02198204 0.02299781 95.58% -4.42%
Farm 0.2500 0.00361143 0.00377831 95.58% -4.42%
Current Ratios
Proposed Ratios
A reduction in the commercial ratio of 0.0243 will result in a 5.18% reduction in the commercial tax rate.
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Comparison of Tax Levy by Class:
Taxation – Assessment Growth
The chart above would yield a tax rate reduction of 4.00%, for all classes except the commercial class which would see a 5.18% rate reduction.
2013 SHARE 2014 SHARE Difference 2013 2014
Residential 30,876,649.04 31,452,870.99 576,221.95 54.97% 51.91%
Multi-Res 5,456,813.93 5,481,826.51 25,012.58 9.72% 9.05%
Commercial 17,503,851.16 21,257,244.21 3,753,393.05 31.16% 35.08%
Industrial 2,105,628.04 2,174,207.13 68,579.09 3.75% 3.59%
Pipeline 211,706.34 212,992.29 1,285.95 0.38% 0.35%
Farm 10,844.49 12,555.86 1,711.37 0.02% 0.02%
56,165,493.00 60,591,697.00 4,426,204.00 100.00% 100.00%
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Taxation – Assessment Growth con’t.
MPAC Assessment
2013 SHARE 2014 SHARE Difference Assessment Growth
(Approximate) (Approximate)
Residential 2,043,020,743$ 2,167,792,560$ 124,771,817$ 92,486,132$ 32,285,685$
Multi-Res 153,695,695$ 160,828,393$ 7,132,698$ 14,085,322$ (6,952,624)$
Commercial 595,432,165$ 762,718,729$ 167,286,564$ 59,254,993$ 108,031,571$
Industrial 56,260,735$ 60,433,385$ 4,172,650$ 6,132,903$ (1,960,253)$
Pipeline 9,205,500$ 9,647,000$ 441,500$ 162,000$ 279,500$
Farm 2,870,200$ 3,461,497$ 591,297$ 521,402$ 69,895$
2,860,485,038$ 3,164,881,564$ 304,396,526$ 172,642,752$ 131,753,774$
Changes in Assessment:
MPAC Assessment is approximate and based on the 2012 Phased-In Assessment Report for the City of Cornwall. Note: 2013 was the first year of the four year phase in. Assessment Growth is a result of new development within the City of Cornwall and will generate $3,439,300 in additional tax revenue in 2014. Supplementary taxation for 2014 is forecasted to be $524,000 which is $1,288,000 lower than 2013.
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Change in Education Tax Rate 2013 2014
Tax Class Rate Rate Decrease
Residential 0.00212000 0.00203000 -4.25%
Multi-Residential 0.00212000 0.00203000 -4.25%
Commercial 0.01490000 0.01460000 -2.01%
Industrial 0.01590000 0.01560000 -1.89%
Pipeline 0.01590000 0.01560000 -1.89%
Farmlands/Managed Forests 0.00053000 0.00050800 -4.15%
New Commercial/Industrial 0.01260000 0.01220000 -3.17%
Education Rates are set by the Provincial Government through the Education Act (Ontario Regulation 400/98). Education rates for the residential class have been reduced and will offset the impact of increased assessment. However, the commercial and industrial classes will see increases. The education rate for the commercial class is 7.19 times higher than the residential class (2013 – 7.028).
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Change in Residential Tax Rate 2007-2014
Page 25
2007 1,692$ 264$ 1,956$
2008 1,736$ 264$ 2,000$
2009 1,708$ 252$ 1,960$
2010 1,637$ 241$ 1,878$
2011 1,590$ 231$ 1,821$
2012 1,554$ 221$ 1,775$
2013 1,511$ 212$ 1,723$
2014 1,451$ 203$ 1,654$
Residential Taxes per $100,000
of Assessment
Year Municipal Education Total
-$302 or -15.4%
Annual combined municipal and education taxes for the residential sector has dropped 15.4% since 2007.
-14.2% -23.1%
$1,300
$1,350
$1,400
$1,450
$1,500
$1,550
$1,600
$1,650
$1,700
$1,750
$1,800
2007 2008 2009 2010 2011 2012 2013 2014
An
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icip
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axe
s
Total Residential Taxes per $100,000 Assessment
Change in Commercial Tax Rates
2007 – 2014
2007 3,325$ 2,421$ 5,746$
2008 3,412$ 2,405$ 5,816$
2009 3,356$ 2,300$ 5,656$
2010 3,216$ 2,150$ 5,366$
2011 3,124$ 1,730$ 4,854$
2012 3,054$ 1,490$ 4,544$
2013 2,970$ 1,490$ 4,460$
2014 2,816$ 1,460$ 4,276$
Commercial Taxes per $100,000
of Assessment
Year Municipal Education Total
Annual combined municipal and education taxes for the commercial sector has dropped 25.6% since 2007.
-15.3% -39.7% -$1,470 or -25.6%
Page 26
$2,500
$2,750
$3,000
$3,250
$3,500
2007 2008 2009 2010 2011 2012 2013 2014
An
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icip
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Total Commercial Taxes per $100,000 Assessment
Community Agencies Municipal Partners & Mandatory Funding Requests:
Organization Name 2013 Approved 2014 Requests $ Increase % Increase
Cornwall Public Library $1,982,538 $2,003,359 $20,821 1.1%
Eastern Ontario Health Unit $692,052 $697,858 $5,806 0.8%
Raisin Region Conservation Authority $448,000 $461,440 $13,440 3.0%
Cornwall Regional Airport $159,784 $157,654 ($2,130) -1.3%
St. Lawrence College (year 5 of 10) $100,000 $100,000 $0 0.0%
Heart of the City $30,000 $30,000 $0 0.0%
Heritage Cornwall $10,385 $49,610 $39,225 377.7%
Eastern Ontario Regional Network (year 2 of 10) $25,858 $25,858 $0 0.0%
Medical Recruitment/Scholarship $75,000 $75,000 $0 0.0%
Total $3,523,617 $3,600,779 $77,162 2.2%
Page 27
There is also $560,000 included in the budget for the grant applications.
• The Ten Year Housing and Homelessness Plan has been completed and approved by the Ministry of Municipal Affairs and Housing.
• Elder Friendly Community
(GSDL, EMS and Social & Housing Services)
Strategic Plan Progress in 2014
Pillar 1
Page 29
Strategic Plan Progress in 2014
Pillar 2
• Economic Development will be presenting an update on the Marketing Plan on Wednesday to the BSC.
Page 30
Strategic Plan Progress in 2014
Pillar 3
• Police Services will be completing a Strategic Plan
• The Fire Master Plan will be completed
• Results from the EMS Deployment Review will be shared on Thursday
• Arts & Culture Needs Assessment will be undertaken in 2014
Page 31
Strategic Plan Progress in 2014
Pillar 4 2014 Budget includes:
• Enhancements to the Waterfront Bike Path with 4 rest stops with benches, concrete pad & garbage cans and picnic tables
• Upgrade signs and paving in the Eco Park/new bridge location
• Pointe Maligne will also have a rest stop, pad & picnic table area
Page 32
Strategic Plan Progress in 2014
Pillar 5 • Development Charges Study
partially funded $30K
• Active Transportation continues with capital projects for Sidewalks - $185K and Bicycle Infrastructure $385K
• Energy Efficient Measures - $40K
• Service Delivery Review – Social & Housing Services
• Employee Engagement Survey to be completed
• Budget Process – changes in structure as well as community engagement survey
Page 33
Page 34
A random sample of 500 properties results in an average municipal tax increase of $0, an average increase of 0% in 2014. Page 34