Report to Council and Community January 15, 2018

January 15, 2018 Seguin Council Meeting eAgenda

 

2018 Preliminary Budget, Stategic Plan & Community Development Plans

2018 Budget Binder2018 Budget Binder

 

SEGUIN TOWNSHIP 2018 DRAFT BUDGET

ASSUMPTIONS/INPUTS

Key principles:
· Target maximum 2% tax rate increase for 2018
· No debt or deficit
· Maintain 5 year capital program, as approved by Council in 2017 budget
· Continue to implement Comprehensive Asset Management Plan
· Maintain staffing levels and programs, unless specifically identified

5 Year Budget Targets:
· Maximum 2% Tax Rate increase per year for 2018-2022
· External levies on average stay at or near inflation of 2%
· All reserves to be positive over next 5 years; target of 25-30% of Operating Expenditures    annually and at end of period

Basic Assumptions:
· Current CPI for Canada is 1.4%, for Ontario 1.3% (October 2017)
· Insurance increase of 2-3% (prelim)
· OMPF increased by $59,400 to $1,977,500
· 2018 COLA of 2.0% to be implemented January 1, 2018 – amounts to
$177,778 increase in budget from 2017 to 2018, including benefits
· External levies – 2%, except as noted below
 Land ambulance – 3.1% per Town of Parry Sound Director
 MPAC – 2.65% per notification from MPAC
 OPP – decrease of $16,980 or 1.26%, per notice from OPP
· Contingency remains at $100,000

Taxes:
· 2018 Preliminary tax rate increase 1.7% (after adjustment for real growth and phase in) –  2018 preliminary municipal tax rate of 0.351638%, compared to 2017 rate of 0. 353726%
· 1% tax rate increase generates approximately $113,510 in municipal tax revenue (before      real and phase in growth)

Capital:
Major 2018 capital projects, per the 2017 budget:
 Clear Lake Road Phase 2 $ 485,000
 Preliminary engineering – Turtle Lake Road $ 25,000
 Replacement of FPO truck $ 35,000
 Replacement of VR43 – 2007 Sterling $ 240,000

New 2018 capital projects included in Draft Budget:
 Purchase of Black Road property $ 150,000
 Roads Needs Study $ 30,000
 Asset Management Plan – FCM Grant $ 50,000

2018 Issue Papers:
Public Works Roads Division:
 Otter Lake Marina Retaining Wall $ 58,559
 Roads Needs Study $ 30,000
Neither of these projects has been included in the Draft 2018 Capital Budget.

Public Works Waste Management Division:
 Completion of Compaction Waste Strategy $ 585,000

The total amount has been included in the Draft 2018 Capital Budget.

 

TOWNSHIP OF SEGUIN FINANCIAL UPDATE

To December 18, 2017

HIGHLIGHTS
The projected surplus has grown to $300,745, from the following budget lines:

Revenue variances:

  • Tax write-offs less than anticipated $ 33,337
  • Railway PILs greater than budgeted, due to rate increase 21,950
  • POA revenues less than budgeted, due to lower overall fines (26,600)
  • Waste management revenues 48,400
  • Lower Penalty and Interest due to better recoveries (33,000)
  • Planning applications more than expected 31,900
  • Building Permit revenues 40,500
  • Investment income, due to rate increases 11,900
  • Net other minor Revenue budget variance (13,377)
    Total Revenue $ 115,010

Expenditure variances:

  • Projected Salary Gapping $ 50,000
  • Volunteer Firefighter Honorariums 56,000
  • Park to Park repayment of Project Bootstrap funds 3,000
  • OPP Prior year reconciliation 4,150
  • Legal expenses 20,000
  • Net other expenditures (5,415)
    Total Expenditures $ 127,735

Contingency fund:
Unused in 2017 $ 58,000

Projected Surplus $ 300,745
Carryforward Surplus to 2018 (100,000)
Projected Surplus to be transferred to Reserves $ 200,745
As per the 2018 Draft Operating Budget, $100,000 in surplus will be carried from 2017 to 2018.

CAPITAL and RESERVES
Overall, the majority of the 2017 Capital projects were completed on time and on budget.
Overages on certain projects were generally offset by savings in others. Carryforwards
are expected to be minimal.

The 2017 Budget estimated total year end Reserves and Reserve Funds at $4,447,919;
the projected actual year end total is now set at $4,875,330, including the projected year
end surplus transfer:

Budgeted year end Reserves and Reserve Funds $ 4,447,919
Net Capital project Savings $ 130,758

Reserve Revenue variances:

  • Election costs (3,747)
  • Gas Tax Revenue 4,293
  • Interest income 8,421
  • SRA/CRA Sales 38,824
  • Land sales 14,273
  • ARA Revenue 9,514
  • Donations 1,021
  • Cash in Lieu of Parkland 23,309 226,666

 

Projected year end Reserves and Reserve Funds, before year end Surplus transfer  $4,674,585

Projected year end Surplus transfer 200,745

Projected year end Reserves and Reserve Funds $ 4,875,330

CONTINGENCY
As per Council direction, up to $42,000 of the Contingency Fund has been allocated to
the Rosseau Memorial Hall project. The balance of $58,000 in the Contingency Fund has
now been included in the projected surplus.

Respectfully submitted,
Michele C. Fraser, BA, MBA, CPA, CA
Chief Financial Officer and Treasurer

 

Summary of the January 15, 2018 Seguin Council Meeting.

  • Prepare a report to Council on the request by James Buder for an exemption to the
    Blasting By-law for the property at 37 Maureen Drive. 
  • Forward a copy of the resolution approving the West Parry Sound Economic
    Development Collaborative to the participating municipalities. Resolution No.
    2018-006. 
  • Provide Council with an update on initiatives undertaken by the Regional Economic
    Development Officer to date. 
  • Execute the Prescribed Snowmobile Trail Land Use Permission with the South Seguin
    Snowmobile Club for the Otter Lake access. By-law No. 2018-003. 
  • Proceed with Consent Application Nos. B-2017-0021 and 0022-H (Maile). Resolution
    No. 2018-008. 
  • Execute and implement the Service Contracts with the By-law Enforcement
    Officers. By-law No. 2018-004. 
  • Prepare a report to Council on the process to add a question to the ballot for the 2018
    Municipal Election. 
  • Upon confirmation by Mayor Gibbon, reserve one room for the AMO Annual Conference. 
  • Implement the Borrowing By-law. By-law No.2018-001. 
  • Implement the appointment of the Auditor. By-law No. 2018-002. 
  • Prepare the 2018 Budgets in Principle for Council consideration at the next meeting.
    Include costs to prepare engineering estimates for Public Works Issue Paper #1 –
    Otter Lake Marina Retaining Wall and Public Works Issue Paper #2 – Ferris Road
    Reconstruction. Resolution No. 2018-014. 

Respectfully Submitted

Jack Hepworth

 

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About admin

Jack and his wife Gail live at their lakefront home on Sucker Lake in Seguin Township, Ontario. First as Lake Rosseau cottagers, now as full time residents, they retired to Seguin in 1999. Proud parents of three married sons, Jack and Gail have 8 grandchildren. Family, community involvement, and physical fitness, are the pivots that support Jack's life. Striking a balance is essential to empower Jack's passion of working to enhance the quality of our community life. A graduate of McMaster University, Jack worked as a Department Head of Geography in Beamsville, Ancaster, and Highland Secondary School in Dundas, Ontario. He enjoys being involved with challenges that improve our quality of life.
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