Town of Newmarket

2011 Budget PresentationSpecial Committee of the Whole Budget MeetingMarch 7, 2011

Presenter: Mike MayesDirector, Financial Services/Treasurer

Presentation Purpose

Review of 2011 Budget Process• Budget Process Recap• New for Today• Possible Objectives for Today

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Budget Process Recap

•Newmarket Public Library Board•Water and Sewer Rate Groups Budget•Communications Tactics

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September 2010 2011 Fees and ChargesJanuary 31 Overview of Preliminary BudgetFebruary 17 Budget Listening SessionFebruary 28 Budget binders distributedMarch 4 Budget available for the public

The Town of Newmarket is Diverse and Complex981 full and part-time employees$110 million budget212 km of roads, 290km of watermains, 50 km of

trails, 365 hectares of parksEstimated replacement value of capital assets =

$1.1 billion Servicing a population of 84,351 in 27,350

householdsManaging many lines of business on a day-to-day basis

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The Town of Newmarket is CompetitiveComparative tax rate – 2010 BMA studyCustomer satisfaction

• 96% of residents are satisfied living in Newmarket• nearly 80% are satisfied with the services received

from the TownNewmarket is ranked 15th out of 179 Canadian

cities and towns and best place to live in York Region

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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.

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2011 Drivers & Challenges

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Driver /Challenge Example

Legislation & Agreements Meeting legislated requirements and agreements [i.e. Accessibility for Ontarians with Disabilities Act (AODA), CYFS]

Service Level and Growth Service Delivery Levels, Community Safety/Emergency Services, Asset Replacement Fund Reserves, Parks, Trails & Open Spaces

Decreased Revenues Participation rates changing due to demographic shifts, decreasing Hydro dividend

Increased Expenses Cost of fuel, electricity & other equipment and materials

Workforce Considerations Maintaining a sufficient workforce in an increasingly competitive labour market

Economic Realities Slower than expected recovery, increasing global unrest

Environment Shifts More complex standards, variable weather conditions

Technology Needs Increase in on-line services, communication methods (i.e. Twitter, Facebook, etc.)

Places to Grow Opportunities Investment by others, new ventures, grant opportunities

Breakdown of Tax IncreaseUnder 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

Town CYFS Library Total

Base 2.51% 1.67% 0.67% 4.85%

Mandatory 0.56% 0.27% 0.03% 0.86%

Growth 1.10% 2.04% 0.00% 3.14%

Enhancement 0.09% 0.09% 0.00% 0.19%

Subtotal 4.26% 4.07% 0.70% 9.03%

Assessment GrowthSupplementary Taxes

(2.04%)(1.10%)

0.00%0.00%

0.00%0.00%

(2.04%)(1.10%)

Total 1.12% 4.07% 0.70% 5.89%

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How our Tax Dollar is Spent

Notes: •$113 / month

•$1366 / year

•3.24% ($188.24 increase) for residential house assessed @ $328,182

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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

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Responsible Financing StrategiesAsset 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 sourcesService Pricing Policy5-year ForecastService Reviews

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New for Today

March 1 - CYFS JCC meeting

Revised "All-In" Tax Impact

Accounting and Policy Changes

Questions and issues addressed through Council Information Report

Draft 2011 Capital Budget

Draft 2011 Reserve and Reserve Fund Budget

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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%.

2010 2011 $ Change % Change

Town $ 1,289.90 $ 1,365.87 $ 75.97 5.89%

Region 1,565.49 1,595.87 30.38 1.94%

Municipal 2,855.39 2,961.74 106.35 3.72%

School Board 790.92 790.92 - 0.00%

Total $ 3,646.31 $ 3,752.56 $ 106.35 2.92%

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Draft 2011 Capital Budget

New Gross Expenditures = $25.5 million

2010 capital budget carryovers

Accounting and Policy Changes

Pre-budget approval for capital expenditures

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Possible Objectives for Today

Direction on inclusions for the Library• Growth and Enhancement items• Capital projects

Draft Capital Budget

Direction to staff for further information or analysis

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Thank you