looking forward - rideau lakes, ontario agendas/addition... · • borrowing should be reserved for...
TRANSCRIPT
Overview
• Strategic Priorities Review
• Looking Back – 2017 Estimated Year-End Position Update
• Looking Forward – 2018• Good News• Pressures• The Big Picture
• Public Survey Results – 2018 Budget Preconsultation
• Council Priority Setting and Guidance
Looking Back
2017 Estimated Year-End Position Update
• Now estimated to be balanced or a minimal deficit
• Driven by:• Spending controls• PILs• Good 4th quarter development
Looking Forward
2018 Good News
• OPP down $25k• Project good development & building• OMPF and OCIF up slightly• Positive Assessment Growth (1.5%)
Looking Forward
2018 Pressures
• New Hall Service Standard - $20k• Inflation - $90k per 1%• Hartsgravel Rd Waste Site MOE Program of Work• Portland Waste Site Closure Liability Funding• Economic Development Investments (Committee
$50k, Heritage Network $90k, Portland/Delta Studies)
• Elgin Main St, Portland Docks, Maintaining Past Hard Surfacing Investments
Looking ForwardThe Big Picture
• The Township needs to aggressively pursue financial sustainability – be able to lifecycle what we own, pay for the services and service levels we want, and make targeted investments for the future.
• We cannot live off deferred maintenance forever – a pinch point will eventually arise.
• As illustrated by my ‘local share’ review, this is not impossible.
• The 10 Year Financial Sustainability Plan and a renewed AMP will be critical elements in understanding our current position and potential pathways.
Looking Forward
The Big Picture
• Council can achieve (and exceed) it $2M long-term debt reduction goal for the term.
• Council can borrow $1.4M in 2018 and meet its target• On a 10y loan at 3.5%, the Township has $5.36M
borrowing capacity
Year YE Debt Increase (Reduction) Running Total
2014 $ 9,675,598 $ - $ -
2015 $ 9,717,985 $ 42,387 $ 42,387
2016 $ 9,204,719 $ (513,266) $ (470,879)
2017 $ 8,121,215 $ (1,083,504) $ (1,554,383)
2018 (if no borrowing) $ 6,530,576 $ (1,876,456) $ (3,430,838)
Looking Forward
The Big Picture
• Operating - staff anticipate some pressures on revenues in 2018 as major one-time items are removed (WDO claw-back, school board claw-back).
• Operating – staff anticipate some pressures on operating expenses.
• This will result in flat or declining funds available from the tax levy to be carried forward to capital ($578,237 in 2017)
Looking Forward
The Big Picture
• Capital – revenues will be flat and/or declining, as levy carry-forward faces pressure and some one-time grants fall off (CWWF $75k).
• Capital - Small uptick in OCIF - $30k.
• Capital - 2017 was $2.2M with $850 borrowing.
• Borrowing should be reserved for ‘improvements’.
Looking Forward
The Big Picture
Potential Capital Revenue
• Transfers: Gas Tax & OCIF $415k• Levy (current estimate @ 0%) $250k
• Long-term Debt ??• Use of Capital Reserve ??• Use of DCs ??• Use of Other Funds (i.e. parkland) ??
• Grants Applied $330k• Foundation Program $75k
Looking Forward
The Big Picture
Potential Capital Expenses
• AMP $3.4M (+$5M deferred)
• Elgin Main St $500-750k• Portland Docks $200k +
Public Survey
• If no, why?
• Waterfront owners pay high taxes, less/ ‘no’ service –private roads, docking, islands/water access.
• Community center/facilities need upgrades (Portland).• More sports, recreation and social facilities/programs
needed.• Road maintenance (gravel and hard) inadequate.
Public Survey
• If yes, what?
• Recreation, social contact, health promotion, transportation
• In-water hazard markers (Big Rideau)• Environmental programs focusing on lake health
Public Survey
• Waste collection - private road, curbside pick-up, frequency
• Continued hard surfacing of gravel roads• Libraries and library services
Public Survey
recreation leisure; village improvement (public space); improved roads; open & efficient government; economic development & tourism attractions; enhance waste services (improved recycling, compost); investment in local heritage;
Public Survey
• drive productivity, performance management, review staffing levels
• eliminate curbside pick-up, privatize or make more efficient (‘driving same roads twice’)
• reduce Council cost (pay, number of claims, number of members)
• better lifecycle management and costing• rationalize operating facilities, libraries, community halls
Decision Making
Strategic Plan (2015)
Asset Management Plan (2017)
Asset Improvement Plan (2018/19)
10 Year Financial Sustainability Plan (2017)
Medium-Term Financial Decision Making (debt planning, service levels, sustainable tax rate etc.)
Annual Budget
Data & Business Decisions
Data & Business Decisions
Multi-year Budget
Priority Setting
•Recommend that we follow the renewed AMP
• Accordingly, priority should be provided to equipment needs and deferred road (surface) maintenance/rehabilitation
• Accordingly, road improvements and new assets should be secondary and targeted to clearly align with strategic priorities
Guidance
• Service and service level changes• COLA• Capital priorities /wants / wishes• Borrowing• Use of reserves, DCs, other funds
Thank You
Staff are looking forward to working with you to make the 2018 Budget process a success.
Based on your guidance, staff will be developing a Draft Budget for delivery in mid-January.