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160118 Budget Council MIN ATTENDANCE Mayor Stephen Molnar Deputy Mayor Dave Beres Councillor Maxwell Adam Councillor Penny Esseltine Councillor Jim Hayes Councillor Chris Rosehart Councillor Brian Stephenson Staff: David Calder, CAO Donna Wilson, Town Clerk Darrell Eddington, Director of Finance Kevin De Leebeeck, Director of Operations Rick Cox, Director of Recreation, Culture and Park Services Tricia Smith, Deputy Clerk 1. Call to Order The meeting was called to order at 3:00 p.m. 2. Adoption of Agenda Moved By: Councillor Rosehart Seconded By: Councillor Hayes THAT the Agenda as prepared for the Council meeting of Monday, January 18, 2016, be adopted. Carried 3. Disclosures of Pecuniary Interest and the General Nature Thereof There were no disclosures of pecuniary interest declared. The Corporation of the Town of Tillsonburg BUDGET COUNCIL MEETING Monday, January 18, 2016 3:00 PM Council Chambers 200 Broadway, 2nd Floor MINUTES Council Budget Meeting Minutes, January 18, 2016 2 4. Adoption of Council Minutes of Previous Meeting 4.1. Minutes of the Meeting of January 12, 2016 Minutes, January 12, 2016 Moved By: Councillor Hayes Seconded By: Councillor Rosehart THAT the Minutes of the Council Meeting of January 12, 2016, be approved. Carried 5. Finance 5.1. FIN 16-03 Labor Reallocation FIN 16-03 Labor Reallocation 2016 Budget Revisions V2 The Director of Finance provided a review of Report FIN 16-03. A budget correction was made in the amount of $133,700 regarding the Town’s labour allocation to THI. Customer service levels are being maintained. Moved By: Councillor Stephenson Seconded By: Councillor Esseltine THAT Council receives report FIN 16-03 Labor Reallocation; AND THAT the reallocation of labor recovery costs in the amount of $133,700 be added to the 2016 Budget. Carried 2016 Budget Revisions V2 - Revised: 2016 Budget Revisions - Council Draft Revised (Good news)/ Bad news Taxation Requirement % Increase Consolidated Total January 12, 2016 - Council 13,468,467$ 2.97% Reallocation of labor recovery costs - 133,700 133,700 Council Training 16,000 13,000 (3,000) Council Meeting Exp 5,500 5,400 (100) HR - Special Projects 15,500 11,600 (3,900) HR - Training Exp 7,000 8,875 1,875 Clerks - Meeting Exp 2,000 1,000 (1,000) Clerks - Training 5,000 4,000 (1,000) Finance - Training 10,000 9,000 (1,000) Finance - Misc Exp 6,700 5,700 (1,000) Finance - Eqpt S&R 1,700 700 (1,000) Finance - Eqpt Rental 2,500 1,500 (1,000) Fin-Bld Mntce - HLW 15,400 14,033 (1,367) Fin-Bld Mntce - Subcon Exp 11,000 10,000 (1,000) CSC - Equipment S&R 5,000 4,000 (1,000) CSC - Training 6,000 4,500 (1,500) Cemetery Plot Sales Revenue (7,200) (10,700) (3,500) Cemetery Foundation Revenue (6,000) (7,500) (1,500) Parks & Playgrounds HLW 31,300 29,800 (1,500) Sportsfields HLW 5,500 5,000 (500) Arena Full time OT 5,000 3,500 (1,500) Figure skating revenue (50,000) (55,000) (5,000) Youth program revenue (155,000) (160,000) (5,000) Aquatics merchandise revenue (4,000) (7,000) (3,000) LLWP admissions revenue (75,000) (76,500) (1,500) Halls & Meeting Rooms rental revenue (75,000) (76,500) (1,500) Museum HLW 26,300 24,000 (2,300) Protection PT labour 10,000 9,000 (1,000) Protection Miscellaneous Exp 6,200 6,000 (200) Animal Control Advertising Exp 2,300 2,100 (200) Building Dept. PT labour 9,500 9,000 (500) Building Dept. Books & Pub 1,900 1,800 (100) Building Dept. Miscellaneous Exp 6,000 5,800 (200) Building Dept. Training Exp 6,300 6,000 (300) Building Dept. Subcon Exp 6,500 6,300 (200) Economic Development Supplies Exp 4,100 1,900 (2,200) Economic Development Special Events 3,000 2,000 (1,000) Economic Development Grants-Other (2,100) (3,000) (900) Fire fighters PT labour 324,100 311,575 (12,525) Fire fighters Special projects - bunker gear 40,600 38,600 (2,000) Building Misc Exp - chairs 6,000 4,500 (1,500) Protection Misc Exp 6,200 5,200 (1,000) Building Permit Revenue (210,000) (212,000) (2,000) Fleet FT labour -One time 110,600 101,300 (9,300) Engineering PT labour 36,800 32,100 (4,700) Roads Maint. Mowing & Spraying PT labour 21,500 16,150 (5,350) Roads Maint. Line Markings PT labour 10,800 8,100 (2,700) Storm Sewers PT labour 3,600 2,700 (900) COLA to 1.25 %(15,100) (15,100) Airport labour 9,500 - (9,500) Building PT labour 9,500 - (9,500) Clerks PT labour 8,000 - (8,000) 33 Consolidated Total January 18, 2016 - SLT 13,468,500$ 2.97% H:\Finance\Financial Plans\2016\2016 Business Support\2016 Budget Revisions V3 1/22/16 Council Budget Meeting Minutes, January 18, 2016 4 Moved By: Deputy Mayor Beres Seconded By: Councillor Adam THAT subsequent to the information contained in Report FIN 16-03 concerning identified budget reductions, that the material be adopted except for the following amendments: 1.Return COLA for 2016 to the original 1.5%, representing an increase of $15,000; 2.Defer the Cost of Living adjustment to April 1, 2016, representing a savings of $23,525; 3.An additional contribution to Reserves of $8,425 AND FURTHER confirming that the Requirement from taxation for the 2016 Draft Budget is set at $13,468,467 and be brought forward to the Council meeting of January 25, 2016 for consideration. Carried 6.Council Budget Discussions Council requested that in the future, a meeting be scheduled to discuss the Council portion of the business plan and budget. Council requested that the expenses and revenues for the 2017 budget be based on 5-year averages. 7.By-Laws 8.1 By-Laws from the Meeting of January 18, 2016 By-Law 3985 Moved By: Councillor Esseltine Seconded By: Councillor Stephenson THAT By-Law 3985, To confirm the proceedings of Council at its meeting held on the 18th day of January, 2016, be read for a first, second and third and final reading, and the Mayor and the Clerk, be and are hereby authorized to sign the same, and place the Corporate seal thereunto. Carried Council Budget Meeting Minutes, January 18, 2016 5 THAT the Council Meeting of Monday, January 18, 2016, be adjourned at 4:10 p.m. Carried 8.Adjournment Moved By: Councillor Adam Seconded By: Deputy Mayor Beres Table of Contents Agenda 2 Minutes, January 12, 2016 Minutes, January 12, 2016 4 FIN 16-03 Labor Reallocation FIN 16-03 Labor Reallocation 8 2016 Budget Revisions V2 10 By-Law 3985, To confirm the proceedings of Council By-Law 3985 12 1 1. Call to Order 2. Adoption of Agenda Proposed Resolution #1 THAT the Agenda as prepared for the Council meeting of Monday, January 18, 2016, be adopted. 3. Moment of Silence 4. Disclosures of Pecuniary Interest and the General Nature Thereof 5. Adoption of Council Minutes of Previous Meeting 5.1. Minutes of the Meeting of January 12, 2016 Minutes, January 12, 2016 Proposed Resolution #2 THAT the Minutes of the Council Meeting of January 12, 2016, be approved. 6. Finance 6.1. FIN 16-03 Labor Reallocation FIN 16-03 Labor Reallocation 2016 Budget Revisions V2 Proposed Resolution #3 THAT Council receives report FIN 16-03 Labor Reallocation; AND THAT the reallocation of labor recovery costs in the amount of $133,700 be added to the 2016 Budget; The Corporation of the Town of Tillsonburg BUDGET COUNCIL MEETING Monday, January 18, 2016 3:00 PM Council Chambers 200 Broadway, 2nd Floor AGENDA 2 Council Meeting – Agenda 2 AND THAT the budget reductions in the amount of $133,700 be removed from the 2016 Budget. 7. Council Budget Discussions 8. By-Laws 8.1 By-Laws from the Meeting of By-Law 3985 Proposed Resolution #4 THAT By-Law 3985, To confirm the proceedings of Council at its meeting held on the 18th day of January, 2016, be read for a first, second and third and final reading, and the Mayor and the Clerk, be and are hereby authorized to sign the same, and place the Corporate seal thereunto. 9. Adjournment Proposed Resolution #5 THAT the Council Meeting of Monday, January 18, 2016, be adjourned at _____ p.m. 3 ATTENDANCE Mayor Stephen Molnar Deputy Mayor Dave Beres Councillor Maxwell Adam Councillor Penny Esseltine Councillor Jim Hayes Councillor Chris Rosehart Councillor Brian Stephenson Staff: David Calder, CAO Darrell Eddington, Director of Finance Kevin De Leebeeck, Director of Operations Rick Cox, Director of Recreation, Culture and Park Services Jeff Smith, Fire Chief Tricia Smith, Deputy Clerk Regrets: Donna Wilson, Town Clerk 1. Call to Order The meeting was called to order at 2:00 p.m. 2. Adoption of Agenda Moved By: Councillor Hayes Seconded By: Councillor Rosehart THAT the Agenda as prepared for the Council meeting of Tuesday, January 12, 2016, be adopted. Carried 3. Moment of Silence The Corporation of the Town of Tillsonburg BUDGET COUNCIL MEETING Tuesday, January 12, 2016 2:00 PM Council Chambers 200 Broadway, 2nd Floor MINUTES 4 Council Meeting Minutes, January 12, 2016 2 4. Disclosures of Pecuniary Interest and the General Nature Thereof There were no disclosures of pecuniary interest declared. 5. Adoption of Council Minutes of Previous Meeting 5.1. Minutes of the Meeting of December 10, 2015 Minutes, December 10, 2015 Moved By: Councillor Rosehart Seconded By: Councillor Hayes THAT the Minutes of the Council Meeting of December 10, 2015 be approved. Carried 6. Information 6.1. FIN 16-01 Property Taxation Presented By: Denis Duguay FIN 16-01 Property Taxation The Revenue Manager provided a review of Report FIN 16-01. Council requested an education session by the MTE Tax Consultant when the the 2017 County tax ratios are determined. Moved By: Councillor Stephenson Seconded By: Councillor Esseltine That Council receives Report FIN 16-01 Property Taxation as information. Carried 7. Finance 7.1. 2016 Budget and Business Plans 2016 Business Plan and Budget 011216 2016 Budget Revisions V2 The Director of Finance provided a review of the 2016 Budget & Business Plans. The 2016 increase to the Median Residential Assessment Growth is 1.48%, down from 3.51% previously reported to Council. Changed assumptions and a budget reallocation correction resulted in a proposed budget reduction of $99,333. 2016 Draft Budget requirement results in a 1.46% or $23.09 increase to the median residential taxpayer. No operational service cuts are being proposed. 5 Council Meeting Minutes, January 12, 2016 3 Council considered a 2.50% budget increase to the median residential taxpayer and revisited past budget cuts. Moved By: Councillor Esseltine Seconded By: Councillor Stephenson THAT the 2016 Budget and Business Plans report and the 2016 Budget Revisions be received as information; AND THAT the reallocation of labor recovery costs and the principal and interest cost reduction in the amount of $99,333 be removed from the 2016 Budget. Carried 7.2. Council Budget Discussion Staff to provide a report on the employee benefit package for a future Council meeting. Director of Recreation, Culture & Parks to bring a report back to Council on costs associated with expanding hours of operation at the health club. Director of Recreation, Culture & Parks to include the extension of the health club hours of operation, the Community Centre kitchen renovations and front entrance reconstruction in the new Conceptual Plan for the Tillsonburg Community Centre. Moved By: C. Stephenson Seconded By: C. Esseltine THAT a Business Plan item and related budget line in the amount of $4000 be added under the department of Recreation, Culture & Parks relating to the Town wide Beautification Strategy and Development. Defeated Moved By: Deputy Mayor Beres Seconded By: Councillor Adam THAT a maximum of 1.46% Taxation Impact to the Median Residential Taxpayer be approved for the 2016 budget. Carried Mayor Molnar turned the chair over to Deputy Mayor Beres at 4:32 p.m. 6 Council Meeting Minutes, January 12, 2016 4 Director of Recreation, Cultural & Parks to bring a report to Council on the efforts of the Cultural Improvement Alliance to date and include event attendance statistics. Moved By: Mayor Molnar Seconded By: Councillor Esseltine THAT the $25,000 for a Space Needs study come from Reserves; AND FURTHER THAT upon proper Reconsideration, that $13,600 for the Cultural Improvement Alliance be added from Reserves, subject to Council endorsement in Q1 2016; AND FINALLY THAT $25,000 be allocated to General Reserves from taxation. Carried Mayor Molnar resumed the chair at 4:50 p.m. Moved By: Councillor Adam Seconded By: Councillor Stephenson THAT the 2016 Draft Budget in the amount of $13,468,467, be brought to the Council meeting of January 25, 2016 for Council consideration. Carried 8. By-Laws 8.1 By-Laws from the Meeting of January 12, 2016 By-Law 3984 Moved By: Deputy Mayor Beres Seconded By: Councillor Adam THAT By-Law 3984, To confirm the proceedings of Council at its meeting held on the 12th day of January, 2016, be read for a first, second and third and final reading, and the Mayor and the Deputy Clerk, be and are hereby authorized to sign the same, and place the Corporate seal thereunto. Carried 9. Adjournment Moved By: Councillor Hayes Seconded By: Councillor Rosehart THAT the Council Meeting of be adjourned at 4:56 p.m. Carried 7 STAFF REPORT FINANCE Report Title: Labor Reallocation Report No.: FIN 16-03 Author: Darrell Eddington Meeting Type: COUN CIL MEETING Council Date: JANUARY 18, 2016 Attachments: RECOMMENDATIONS: THAT Council receives report FIN 16-03 Labor Reallocation; AND THAT the reallocation of labor recovery costs in the amount of $133,700 be added to the 2016 Budget; AND THAT the budget reductions in the amount of $133,700 be removed from the 2016 Budget. EXECUTIVE SUMMARY On January 14th, during the completion of the THI budget, the Finance Regulatory Affairs Manager determined that the Town labor allocated to THI was overstated by the amount of the Town’s labor reallocation entries totaling $133,700. A Town budget correction in the amount of$133,700 is therefore required. Senior management met and is recommending the adjustments be made as per the attached revisions. In summary, the proposed adjustments are: • No service level cuts; • No use of debt; • No use of reserves; • Net reduction in the Finance department budget in the amount of $20,892; • Net reduction in the Council department budget in the amount of $3,100; • Net reduction in RCP department budget in the amount of $26,800; 8 • Net reduction in Operations department budget in the amount of $32,450; • Net reduction in the Fire department budget in the amount of $14,525; • Net reduction the Building department budget in the amount of $16,700; • Net reduction in the Economic Development budget in the amount of $4,100; • A reduction in the cost of living increase from 1.5% to 1.25% in the amount of $15,100. Going forward, staff will ensure that the THI budget and the Town budget are completed in the same time period, helping to ensure that these errors are caught in a timely manner. FINANCIAL IMPACT/FUNDING SOURCE The 2016 Draft Budget requirement remains as per Council’s resolution of January 12, 2016 at $13,468,467; however, staff has now rounded the budget to $13,468,500 to match FMW, the Town’s budget software. For Town taxation purposes, this budget requirement results in an increase to the median residential taxpayer of 1.46% or $23.09. As per Council’s resolution, the 2016 Draft Budget will be brought to the Council meeting of January 25, 2016 for Council’s consideration. Page 2 / 2 CAO 9 2016 Budget Revisions - Council Draft Revised (Good news)/ Taxation Requirement % Increase Budget November 10, 2015 13,732,000$ 4.98% Total Community Grants 81,000$ 74,300$ (6,700)$ Fireworks- Council Special events - 5,000 5,000 OPP Rent Revenue adjustment 305,500 298,000 7,500 FT Labour net increase - Final rates 6,928,200 6,929,800 1,600 BIA Façade 15,000 25,000 10,000 Finance Interest revenue 2,000 11,000 (9,000) Increased OMPF Grant 95,100 153,600 (58,500) Police Service Board net levy 9,100 8,500 (600) Increased EFC Net rent 70,000 87,500 (17,500) (68,200)$ Consolidated Total November 26, 2015 13,663,800$ 4.46% December 2, 2015 Remove Cemetery Connectivity Capital Project 10,000 - (10,000) Remove Accessibility Upgrades Program Capital Project - - - Remove Corridor Management Initiative Capital Project from taxation, now funded by debt 40,000 - (40,000) Remove CIA sustainability from Operating 13,500 - (13,500) (63,500) Consolidated Total December 2, 2015 13,600,300$ 3.98% December 3, 2015 Additional Brockton Revenue - Fire Comm 253,900 258,900 (5,000) Consolidated Total December 3, 2015 13,595,300$ 3.94% December 10, 2015 Reduce Christmasfest grant funding 4,000 3,000 (1,000) Connecting link funding source change, from reserves to debt - Physician recruitment funded by reserves 10,000 (10,000) Playground expansion, Oak Park, funded by DC 16,500 3,000 (13,500) Coronation Park Pavilion, one pavilion 33,000 30,000 (3,000) (27,500) Consolidated Total December 10, 2015 13,567,800$ 3.73% Reallocation of labor recovery costs - 62,600- (62,600) Reallocation of labor recovery costs - 6,100- (6,100) Roads - Trottier Sub Div.- Debt Principal 157,816 137,816 (20,000) FL70 Fire Truck - Debt Principal 46,461 38,794 (7,667) FL70 Fire Truck - Debt Interest 13,981 11,014 (2,967) (99,333) H:\Finance\Financial Plans\2016\2016 Business Support\2016 Budget Revisions V2 1/15/1610 2016 Budget Revisions - Council Draft Revised (Good news)/ Taxation Requirement % Increase Consolidated Total January 12, 2016 - SLT 13,468,467$ 2.97% Further Revisions made by Council Space needs study funded by reserves 25,000 - (25,000) Contribution to reserves - 25,000 25,000 CIA added back into budget 13,600 13,600 CIA funded by reserves 13,600- (13,600) - - - Consolidated Total January 12, 2016 - Council 13,468,467$ 2.97% Reallocation of labor recovery costs - 133,700 133,700 Council Training 16,000 13,000 (3,000) Council Meeting Exp 5,500 5,400 (100) HR - Special Projects 15,500 11,600 (3,900) HR - Training Exp 7,000 8,875 1,875 Clerks - Meeting Exp 2,000 1,000 (1,000) Clerks - Training 5,000 4,000 (1,000) Finance - Training 10,000 9,000 (1,000) Finance - Misc Exp 6,700 5,700 (1,000) Finance - Eqpt S&R 1,700 700 (1,000) Finance - Eqpt Rental 2,500 1,500 (1,000) Fin-Bld Mntce - HLW 15,400 14,033 (1,367) Fin-Bld Mntce - Subcon Exp 11,000 10,000 (1,000) CSC - Equipment S&R 5,000 4,000 (1,000) CSC - Training 6,000 4,500 (1,500) Cemetery Plot Sales Revenue (7,200) (10,700) (3,500) Cemetery Foundation Revenue (6,000) (7,500) (1,500) Parks & Playgrounds HLW 31,300 29,800 (1,500) Sportsfields HLW 5,500 5,000 (500) Arena Full time OT 5,000 3,500 (1,500) Figure skating revenue (50,000) (55,000) (5,000) Youth program revenue (155,000) (160,000) (5,000) Aquatics merchandise revenue (4,000) (7,000) (3,000) LLWP admissions revenue (75,000) (76,500) (1,500) Halls & Meeting Rooms rental revenue (75,000) (76,500) (1,500) Museum HLW 26,300 24,000 (2,300) Protection PT labour 10,000 9,000 (1,000) Protection Miscellaneous Exp 6,200 6,000 (200) Animal Control Advertising Exp 2,300 2,100 (200) Building Dept. PT labour 9,500 9,000 (500) Building Dept. Books & Pub 1,900 1,800 (100) Building Dept. Miscellaneous Exp 6,000 5,800 (200) Building Dept. Training Exp 6,300 6,000 (300) Building Dept. Subcon Exp 6,500 6,300 (200) Economic Development Supplies Exp 4,100 1,900 (2,200) Economic Development Special Events 3,000 2,000 (1,000) Economic Development Grants-Other (2,100) (3,000) (900) Fire fighters PT labour 324,100 311,575 (12,525) Fire fighters Special projects - bunker gear 40,600 38,600 (2,000) Building Misc Exp - chairs 6,000 4,500 (1,500) Protection Misc Exp 6,200 5,200 (1,000) Building Permit Revenue (210,000) (212,000) (2,000) Fleet FT labour -One time 110,600 101,300 (9,300) Engineering PT labour 36,800 32,100 (4,700) Roads Maint. Mowing & Spraying PT labour 21,500 10,800 (5,350) Roads Maint. Line Markings PT labour 10,800 5,400 (2,700) Storm Sewers PT labour 3,600 1,800 (900) COLA to 1.25 %(15,100) (15,100) Airport labour 9,500 - (9,500) Building PT labour 9,500 - (9,500) Clerks PT labour 28,000 20,000 (8,000) 33 13,468,500$ 2.97% H:\Finance\Financial Plans\2016\2016 Business Support\2016 Budget Revisions V2 1/15/1611 THE CORPORATION OF THE TOWN OF TILLSONBURG BY-LAW NUMBER 3985 BEING A BY-LAW to confirm the proceedings of Council at its meeting held on the 18th day of January, 2016 WHEREAS Section 5 (1) of the Municipal Act, 2001, as amended, provides that the powers of a municipal corporation shall be exercised by its council; AND WHEREAS Section 5 (3) of the Municipal Act, 2001, as amended, provides that municipal powers shall be exercised by by-law; AND WHEREAS it is deemed expedient that the proceedings of the Council of the Town of Tillsonburg at this meeting be confirmed and adopted by by-law; NOW THEREFORE THE MUNICIPAL COUNCIL OF THE CORPORATION OF THE TOWN OF TILLSONBURG ENACTS AS FOLLOWS: 1. All actions of the Council of The Corporation of the Town of Tillsonburg at its meeting held on January 18, 2016, with respect to every report, motion, by-law, or other action passed and taken by the Council, including the exercise of natural person powers, are hereby adopted, ratified and confirmed as if all such proceedings were expressly embodied in this or a separate by-law. 2. The Mayor and the Clerk are authorized and directed to do all the things necessary to give effect to the action of the Council of The Corporation of the Town of Tillsonburg referred to in the preceding section. 3. The Mayor and the Clerk are authorized and directed to execute all documents necessary in that behalf and to affix thereto the seal of The Corporation of the Town of Tillsonburg. 4. This by-law shall come into full force and effect on the day of passing. READ A FIRST AND SECOND TIME THIS 18th DAY OF JANUARY, 2016. READ A THIRD AND FINAL TIME AND PASSED THIS 18th DAY OF JANUARY, 2016. ________________________________ MAYOR – Stephen Molnar ________________________________ CLERK – Donna Wilson 12