2018 Draft Operating Budget CAO Opening Remarks

Budget Committee of the Whole Tuesday, January 23, 2018

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One Team

The success of one is the success of all

COUNCIL DECISIONS STAFF DELIVERY

HOW ITS DONE WHAT IS DONE

Are we doing the right things?

Are we doing things right?

AND

Through short and long term planning Future impacts are considered before decisions are made today Reduce budget reliance on unsustainable revenue sources (e.g.

investment income, gapping & growth stabilization)

Prudent Consideration of Reserves Capital Asset Sustainability Strategy has prolonged the estimated

life of repair & replacement reserves to 2027 (includes Infrastructure Levy to each tax account) Tax Rate Stabilization Reserve, for one-time, unforeseen events

or circumstances that would require excessive tax rate impacts

Leverage All Available Funding Sources Grant funded Capital Strategy Wise use of Gas Tax Funds

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Commitment to Fiscal Sustainability

Service Improvement Framework

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Our Mission: To provide

exceptional public service to our

community

Service Improvement

Projects

Internal Audit

Lean

Key Performance

Indicators

Focuses on risks and their management to assure

internal systems and controls are in place.

In-depth review of opportunities to enhance service

delivery and further strengthen these

initiatives.

Measures how well a program or service is working to inform decision-making and service improvement.

Improves overall performance by identifying and reducing waste and making processes better and more efficient.

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Provides a consistent approach and set of tools for innovation.

Engages all staff from leadership to the front line to improve the work we do.

Respects employees by encouraging all of us to reduce our day-to-day pain points.

Focuses on the community by improving what we do.

What is Lean?

Lean Pilot Program Road Map

To design a made in Richmond Hill approach

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2018 Draft Operating Budget Overview

Budget Committee of the Whole Tuesday, January 23, 2018

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Overview 1. Budget Process & Direction 2. Economic and Growth Indicators 3. 2018 Draft Operating Budget 4. Tax Impact to Homeowner 5. 2019 - 2021 Financial Outlook 6. Tax Rate Stabilization Reserve 7. Next Steps

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Budget Process

Review User Fees

New Fees Amended fees Indexed CPI

(Toronto) Basis for revenue

budget assumptions and cost recovery

Capital Budget & Ten-Year Forecast

Annual Capital Budget in the Fall

Ten-Year Capital Forecast (April workshop)

Operating Budget

Preparation Operating Budget

impacts from Capital Budgets

Management Review

Budget Consultation

Financial Outlook

Oct. 10, 2017 Nov. 27, 2017

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Feb. 6, 2018

2018 Operating Budget Process Budget Consultations & Engagement

Business Community Information Session December 8th, 2017 Public Budget Information Session January 20th, 2018 Budget Video How Richmond Hills Budget Works

Budget Committee of the Whole Tuesday, January 23rd Operating Budget Overview and

Water/ Wastewater/ Stormwater Management Budgets Tuesday, January 30th if necessary Tuesday, February 6th Adoption the 2018 Operating Budgets

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Council Directions Maintain existing service levels Include items consistent with the Strategic Plan, that also provide for:

Annualizations of prior years approved service enhancements Impacts from development growth Legislated changes Phased-out reductions from the Growth Rate Stabilization Strategy and Investment

Income as approved in 2017

Continue with the Capital Asset Sustainability Fee Strategy as approved in 2016 while factoring in growth and inflation

Update the Three-Year Financial Outlook and Staffing Plan for the years 2019 to 2021

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Council Directions

Include no more than 4 additional firefighters and that the time frame identified in the Fire Master Plan be revisited in the 2019 Operating Budget

Library Draft Net Operating Budget reflect an increase of no more than $750,000

Overall Draft Net Operating Budget reflect an increase of no more than $3 million

That the Compensation Policy for the Administrative and Salaried

Employees Association be approved to come in effect January 1, 2018

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Economic Climate Historical Price Indices

(Source: Statistics Canada, unless otherwise noted) 2017 (%) Construction Price Indices (non-res.) 2.92 Commercial 2.63 Industrial 2.91 Institutional 3.28 Electricity 0.86 Natural Gas 10.73 Gasoline 9.01 Energy 1.00 Water (York Region) 9.00 (2018 Forecast) Recreation Programs 1.01 Consumer Price Index 2.00 Municipal Price Index (2018) 2.26

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Economic Climate

Forecasted Investment Rates 2018 Forecast (%)

Bank of Canada Overnight Rate 1.25

Three-Month Treasury Bill Rate 1.20

10-Year Bond Rate 2.20

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Source: RBC Economics Research, Financial Markets Forecast January 2018

Growth Indicators

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2005 2010 2015 2017 2018 % Growth since 2005% Growth over 2017

162,000 187,800 205,300 214,100 217,200 34% 1%Households 53,000 57,000 64,150 67,255 68,545 29% 2%

Roads (km) 508 531 545 555 572 13% 3%Sidewalks (km) 552 608 650 670 687 24% 3%Storm Sewers (km) 460 500 513 524 530 15% 1%Seniors Driveways 913 1,335 1,424 1,663 1,691 85% 2%

Waste Tonnage 51,593 55,963 54,862 56,932 54,251 5% -5%

Street Lights 13,680 15,154 15,973 16,305 16,832 23% 3%8,704 9,870 12,288 12,600 12,850 48% 2%

Traffic Signals 19 22 29 30 31 63% 3%

Parkland (acres) 728 751 766 808 810 11% 0%Open Space (acres) 1,604 1,826 2,038 2,272 2,298 43% 1%

Population

Signs

2013 Sources of Funds

20122013

Interfund Trans to Ops 13120

TRH: TRH:Run report in Cayenta764725011781800

Total Sources ($ Millions)20122013

(B)(P)20122013

WWW47,358,60053,101,000

TRH: WWW narrative p. 2

User Fees/Fines$35.1$38.320132012

Water Billings47.453.2TOTAL

TRH: used FIMS interfund reports 11120OperatingCapitalWWWTOTAL

TRH: used FIMS interfund reports 11120OperatingCapital

TRH: Source: Town's websiteWWW

Investment Income7.17.1Reserves 30,769,5007,512,200

TRH: Run: Interfund Transfer TO OPS 13120 report23,257,300Reserves 31,738,1507,038,150

TRH: Run: Interfund Transfer OPS 2012 report24,700,000

DCs and Parkland12,769,680795,90011,973,780DCs and Parkland9,141,200554,1008,587,100

Property Taxes83.586.8Fed/Prov Grants7,430,90077,5007,353,400

TRH: Federal Gas TaxFed/Prov Grants3,709,000209,0003,500,000

TRH: Federal Gas Tax

Other5,403,5203,396,2002,007,320Other5,417,7504,004,8501,412,900

Reserves 31.730.856,373,60011,781,80044,591,80050,006,10011,806,10038,200,000

DCs and Parkland9.112.8

Other5.45.4Water and Wastewater Revenue53,186,200Water and Wastewater Revenue47,433,600

Fed/Prov Grants3.77.4

Maint-Operations - User Fees1,334,000Maint-Operations - User Fees1,214,000

140.5Revenue - User Fees267,000Revenue - User Fees259,500

142.09

(1.62)(1.78)

2013Property Tax86,780,320Property Tax83,523,900

Taxation86.8Investment Income6,870,000180,000Investment Income6,870,000180,000

User Fees, Fines and Charges34.8User Fees, Fines and ChargesUser Fees, Fines and Charges33,600,000

Reserves and Reserve Funds8.4105,432,12044,591,80054,967,200135,800,00038,200,00049,087,100

Investment Income7.131,619,930-0

Other Funds3.4

TRH: from water & wastewater fund - REPORT: Intrfd Transfer from Www 13904

To Be Funded000

140.5142.1

3,493,800

20122013142,090,80087,100

Operating:135.8142.1million117,000

Water:49.155.0million100,000

Capital:38.244.6million395,300

2,475,000

Total$ 223.1$ 241.6million2,434,700

157,500

2,623,500

8,390,100

45,000

662,000

11,966,400

3,919,800

2,434,100

214,400

718,800

28,700

2,889,200

2,420,100

170,000

161,300

100,000

25,729,800

466,900

38,080,600

population

2001200520062009201020112012201320142015*20152016*% Growth since 2005% Growth over 2005

Full-time Staffing137,900563183,000622191,600195,100197,900203,153206,57270772228%2%

Population137,900162,000183,000187,800191,600195,100197,900203,153206,572205,300209,40029%2%

Households41,70053,00055,60057,00058,10059,20060,15062,96264,18164,15065,90024%3%

Roads (km)4675085305315355405405415525455508%1%

Sidewalks (km)42655259360861862063564065365065819%1%

Storm Sewers (km)38446049050050350450651152151351913%1%

Seniors Driveways9131,2961,3351,4161,1291,1501,3401,1171,6241,70587%5%

Waste Tonnage44,64151,59354,81055,96356,14457,79755,53255,93857,67355,16256,0909%2%

Street Lights10,80013,68014,77415,15415,33415,41315,72115,79516,11115,97316,11218%1%

Signs7,7768,7049,6269,87010,10211,57111,80212,05812,29312,28812,51844%2%

Traffic Signals151922222329292929293058%3%

Parkland (acres)7687287427547607647657677707707787%1%

Open Space (acres)1,0401,6041,7791,8271,8692,0242,0282,0322,0912,0482,20137%7%

Assessment Growth $2,415,6001,590,48