January 15, 2018 Seguin Council Meeting eAgenda
SEGUIN TOWNSHIP 2018 DRAFT BUDGET
· 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
· 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
· 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)
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
The projected surplus has grown to $300,745, from the following budget lines:
- 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
- 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
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
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.
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.
- 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
- 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
- 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.