2020 Draft Budget

2020 Draft Budget Includes 2020-2022 3-year Operating Budget 2020-2029 10-year Capital Budget January 2020 This document is available in alternate formats, upon request 2020 Budget DECEMBER 5, 2019 2020 Overall Budget County Base Levy at 7.26%, $16,704,452 1% Levy Increase = $155,744 Overall Budget Summary 2020‐2022 Budget Budget 2019 2020 % of Levy % of Overall Operating Levy 12,529,355 13,539,452 1,010,097 8.06% 6.49% Capital Levy 3,045,000 3,165,000 120,000 3.94% 0.77% Overall Levy 15,574,355 16,704,452 1,130,097 7.26% 2020 Overall Budget Summary Review • County Base Levy at 7.26%, $16,704,452 1% Levy Increase = $155,744 NON‐DEPARTMENTAL CHANGES CAPITAL BUDGET Non‐departmental (0.94)% Capital Budget Levy 0.77% . OMPF ‐$212K (Levy ‐ Future ($3.17M) Stabilization) $100,000 Modernization . Other Net ‐$24K Net Internal Services 5.14% Grants 0.06% EXTERNAL SHARED SERVICES SUMMARY Social Services 1.07% Non‐departmental+Grants (0.88)% Health Unit 0.70% Capital 0.77% Spruce Lodge 0.48% External Shared Services 2.26% Stratford‐Perth Museum 0.01% Internal Operating 5.11% Net Shared Programs 2.26% Net County Levy 7.26% 2020 Overall Budget 2020 Operating Budget Breakdown Operating Budget $ 29,331,176 Administration $ 2,981,030 10.2% Capital Budget $ 6,619,420 Court Services $ 1,068,346 3.6% (Net of inter‐dept transfers) $ 35,950,596 Archives $ 430,885 1.5% Revenues Federal Grants $ 3,856,393 10.5% Public Works $ 7,398,476 25.2% Provincial Grants $ 8,384,758 22.8% Planning & Economic Other Municipal $ 5,627,241 15.3% Development $ 970,309 3.3% Other Revenue $ 2,280,520 6.2% Paramedic Services $ 9,817,378 33.5% $ 20,148,912 $ 22,666,424 Operating Levy $ 13,539,452 Capital Levy $ 3,165,000 External $ 6,664,752 22.7% $ 16,704,452 45.3% $ 36,853,364 $ 29,331,176 Budget Overview • 2020 Budgeted Operational Expenses total ‐ $41.25 Million, Expenses are offset by $27.7 Million in Revenues received from Federal, Provincial, Municipal grants and other revenues. Revenue and expenses includes interdepartmental revenues and expenses. • Removing Interdepartmental revenue and expenses the operational budget breakdown for 2020 ‐ $29.3 Million 2020 Operating Budget Breakdown Administration 10% POA 4% External Archives PS 33% 23% 1% Public Works 25% Public Works 58% 25% Paramedic External 23% Services 34% 81% Planning & EcDev 3% Budget Overview Operating Budget Items • Overhead costs – CAO, Clerk, HR, Finance, IT, General Liability Insurance net costs (2018: $2.40M, +$345K) (2017: $1.99M ‐$103K); (2016: $2.10M, +$190K);have been allocated to all other operational budgets), (2019: $2.73M, +$390K), (2020: $2.79M, +$60K), (2021: $2.83M, +$40K). Budget Overview Operating Budget Items • Overhead costs (Continued) – CAO, Clerk, HR, Finance, IT, General Liability Insurance net costs are allocated based on a Division’s prior year percentage of Operating budget Budget Overview Operating Budget Items • Interdepartmental charges – All facilities, including Courthouse County offices, all PS bases and Archives location, are reflected within the PW‐Facilities Division, and recovered through ‘Interdepartmental Charges‐Rents’ (2016: $1.45M, +$351K), (2017: $1.65M,), (2018: $1.71M, +65K), (2019: $1.75M, +40K), (2020: $1.76M, +6K), (2021: $1.76M, N/C) – All fleet are managed by Public Works –Fleet Division. Fleet Division uses a combination of Hourly rates –PW vehicles and Flat Rate to fund the complete operation and future capital replacement of the overall County fleet. Flat and hourly rates are reviewed annually to ensure Reserve has sufficient money to purchase new. Budget Pressures Items impacting the budget • OMPF funding – 2011 $4.37M; 2012 $4.21M; 2013 $3.98M; 2014 $3.38M; 2015 $2.7M; 2016 $2.3M; 2017 $1.95M; 2018 $1.66M; 2019 $1.41M, 2020 $1.20M, 2021 $1.02M – For 2020, allocation is 85% of 2019 – County receives 100% transitional assistance funding, which is being completely eliminated. – Remaining impact to the overall budget represents a 9% levy increase. – With the impacts of Winter Maintenance and Shared Services to assist in overall pressure is to fund the decrease from OMPF from Levy Stabilization reserve forecasted for 2020 and 2021. – Levy stabilization reserve is anticipated to have approximately $870,000 at the end of 2019. Utilization of this reserve will leave an approximately $360K in the reserve at end of 2021. 2020 Continuity of Reserve Balance Contributions Contributions Contributions Transfers Expenditures Balance Projected From From From Between From Projected 1‐Jan‐20 Operating / Capital Levy Interest Reserves Reserves 31‐Dec‐20 Other Capital Reserves 3810 Facilities Reserve 1,681,198 748,473 0 38,628 891,847 1,576,452 3820 Medical Equipment Reserve 56,660 0 125,000 1,127 144,420 38,367 3825 Equipment Reserve 52,448 0 0 1,259 10,600 10,600 53,707 3830 Fleet Reserve 351,671 617,501 0 5,638 851,000 123,810 3840 Roads Reserve 7,346,660 1,293,595 2,300,000 161,124 4,859,954 6,241,425 3850 Bridges & Culverts Reserve 394,288 158,552 740,000 14,834 451,000 856,674 3860 Computer Systems Reserve 37,102 155,000 0 1,370 38,000 153,000 78,472 $9,920,027$ 2,973,121 $3,165,000 $ 223,980 $ 48,600 $ 7,361,821 $8,968,907 Earmarked Reserves 3130 County WSIB Reserve 415,948 0 0 10,815 0 426,763 3140 County Employment Reserve 197,186 5,127 95,000 107,313 3150 County Levy Stabilization Reserve 865,968 0 0 22,515 365,800 522,683 3175 Paramedic Community Care Fund 6,462 168 6,630 3190 Assessment Appeals 96,552 0 0 2,510 0 99,062 3145 Cannabis Funding Grant 52,474 1,364 53,838 3200 Moderization Grant 631,500 0 0 16,419 ‐26,000 100,000 521,919 3234 Winter Maintenance Reserve 63,110 0 0 1,641 0 64,751 3310 EMS Employment Reserve 146,400 0 0 3,806 0 150,206 3330 EMS WSIB Reserve 600,670 0 0 15,617 54,000 562,287 3340 EMS Inter‐Mun Billing Reserve 103,097 0 0 2,681 0 105,778 3400 Archives Equipment Reserve 105,804 0 0 2,751 ‐22,600 0 85,955 3410 Archives General Reserve 47,391 0 0 1,232 0 48,623 3500 Land Division General Reserve 37,637 0 0 979 0 38,616 3600 Planning Photoimagery Reserve 17,713 0 0 461 7,500 10,674 $ 3,387,912 $ ‐ $ ‐ $ 88,086 ‐$ 48,600 $ 622,300 $ 2,805,098 Discretionary Reserves 3100 County General Reserve 66,436 19,582 0 1,727 3,500 84,245 $ 66,436 $ 19,582 $ ‐ $ 1,727 $ 3,500 $ 84,245 Sub‐Total Reserves 13,374,375 2,992,703 3,165,000 313,793 0 7,987,621 11,858,250 3160 Working Fund 1,644,474 0 0 42,756 0 1,687,230 $ 1,644,474 $ ‐ $ ‐ $ 42,756 $ ‐ $ 1,687,230 Total Reserves 2020 15,018,849$ 356,549 13,545,480 Budget Pressures Items impacting the budget (Continued) • Shared Services (Social Services, HPHU, Spruce Lodge) – Social Services numbers provided are based on reports submitted MSSC in 2019 for the 2020 Budget. – Weighted Assessment Formula. County percentage has increased over 2019 by 0.95%, which is 2.10% over the past 2 years. Anticipated to have another 0.60% increase in 2021. This was due to the Farm assessment increases in the last assessment cycle, a shift back against residential will most likely be seen in next assessment cycle. • Insurance – 2020 ‐ Overall increase in insurance from 2019 – 22%. Increase relates a market correction being seen across the overall Municipal sector. Minor increases to Automobile and Property premiums. Asset Management • 2020 Capital Budget – Capital projects total ‐ $6.6 Million – $2.2 Million funded from reserves – $4.4 Million funded from Federal Gas tax, Provincial OCIF, Municipal Partners – $3.17 Million capital levy with the transfer to reserves for future capital projects Asset Management • Infrastructure funding (Capital) Budget– Federal Scenarios Gas Tax ‐ Agreement is now based on population growth; 2016‐17 $1.14M; 2018‐ $1.19M; 2019‐20‐$1.15M; 2021‐ $1.21M – Regional Roads – Capital Funding • Historically, all money received for regional roads went against operations. Change in allocation of Municipal funding from operating to Capital started in 2016 in shifting 10% of the funding 2020 to capital. In 2020, proposed: Operating Budget % Operating 85.00% Capital Budget Roads - Capital Roads 7.00% Bridges - Capital Bridges & Culverts 8.00% Total Capital % Capital 15.00% Operating Budget $ Operating 1,684,786 Roads - Capital Roads 138,763 Bridges - Capital Bridges & Culverts 158,552 Total Capital $ Capital 297,315 Total Contribution from Stratford Regional Roads Revenue 1,982,101 Infrastructure Deficit Gap • Based on the 2020 proposed increases to Capital Levy the Infrastructure Gap still remains 1.47M per year. County of Perth Summary of Infrastructure Requirements & Current Funding Available ‐ 2020 Annual Deficit Average Annual Investment Stratford Road Taxes to Asset Category Required Gas Tax OCIF Contribution Reserves Total Tax funded: Computer Systems 170,539 ‐ ‐ ‐ 155,000 155,000 15,539 Bridges and Culverts 1,171,277 ‐ ‐ 158,552 740,000 898,552 272,725 Road Network 4,869,651 1,154,779 ‐ 138,763 2,300,000 3,593,595 1,276,056 Facilities and Land Improvements 633,066 ‐ ‐ ‐ 748,473 748,473 ‐115,407 Fleet 633,654 ‐ ‐ ‐ 617,501 617,501 16,153 Medical Equipment 127,014 ‐ ‐ ‐ 125,000 125,000 2,014 Total 7,605,201 1,154,779 0 297,368 3,790,974 5,084,569 1,467,080 Asset Management • Dedicated increase to Roads and Bridges capital levy over the next 10 years of $170,000 per year ($150,000 roads and $20,000 Bridges) to assist in closing the infrastructure et Scenariosdeficit gap significantly by 2029.

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