Looking ForwardBudget 2018

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

Strategic Priorities

“ Progressive Rural Governance”

Strategic Priorities

“ Progressive Rural Governance”

Strategic Priorities

“ Progressive Rural Governance”

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

Public Survey

• Online for 20 days

• Website, Facebook, print and radio media

• 150 responses

Public Survey

• Live online for 20 days• 150 responses

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

• Live online for 20 days• 150 responses

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

Public Survey

• Waste collection - private road, curbside pick-up, frequency

• Continued hard surfacing of gravel roads• Libraries and library services

Public Survey

Public Survey

• Policing• Waste collection• Education, Healthcare, CAs

Public Survey

Public Survey

Public Survey

Public Survey

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

2017 Priority Setting

• boaters (docking, launching)• library cards/other fees

Public Survey

2017 Priority Setting

• reduce garbage fees• reduce building permit fees

Public Survey

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

Priority Setting & Guidance

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.