January 2017 County of Wellington Budget Report to AF&HR Committee

110 Pages·2017·9.42 MB·English

by  Craig Dyer

County of Wellington
2017 Budget Review Package

Administration, Finance and Human Resources Committee
January 17, 2017

2017 Quicklinks

Report from the County Treasurer

2017 Operating Budget Summary
2017-2021 Operating Budget Forecast
2017 Budget Adjustments
2017-2021 Capital Budget Summary
Executive Summary - Operating
Summary of Staffing by Department
Executive Summary - Capital
Fund Balances
Long-Term Liabilities and Debt
General Revenues & Expenses
County Council
Office of the CAO and Clerk
Treasury
Human Resources
Property Services
Grants and Contributions
Economic Development
Roads and Bridges
Solid Waste Services
Social Housing
Affordable Housing
Ontario Works
Children’s Early Years Division
Wellington Terrace
Library
Museum and Archives at Wellington Place
Planning
Green Legacy
Emergency Management
Police Services
Provincial Offences Act (POA) Administration
Ambulance Services
Public Health
COMMITTEE REPORT

To: Chair and Members of the Administration, Finance and Human Resources Committee
From: Ken DeHart, County Treasurer
Date: Tuesday, January 17, 2017
Subject: 2017 Budget and 2017-2021 Five Year Plan

Background:
The proposed 2017 Operating Budget and 2017-2021 Capital Budget forecast are attached for the
Committee’s consideration. The current status of the 2017 operating budget is summarized as follows:

 2017 tax levy requirement = $91,621,400
 Proposed County tax increase = 3.1%
 Tax impact per $100,000 of assessment = $20

Overview of attachments

The package includes programme information pages, operating budgets and capital forecasts for all
services provided and/or funded by the County. The 2017 Budget reports have been reviewed by all
Committees and Boards. The numbers included herein reflect all budget amendments approved by
Committees to date. Highlights of the 2017 Budgets for programme areas that report directly to the
Administration, Finance and Human Resources Committee are set out below.

County Council
 The 2017 budget provides for salaries, and benefits for Council members and various Council and
Committee expenses

Office of the CAO and Clerk
 This budget includes corporate communication costs, including the weekly County page
 Annualization of the Graphic Designer and Information Management Assistant positions added in
2016
 The 2017-21 capital forecast includes life cycle replacement activities for network, server, switches
and electronic storage. Applications services implementations include a corporate records
management system and website upgrades.

Treasury
 Implementation of the Assessment Base Management Policy and Programme approved in
November. This includes the addition of a new Accounting Analyst – Property Taxes and additional
consulting fees.

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Human Resources
 Accessibility grants in the amount of $70,000 are available to member municipalities to facilitate
improved access to municipal buildings throughout the County.
 The addition of an HR clerk to assist with payroll, pension and benefits, and corporate training

County Property
 Building rental revenue is derived from lease agreements for the Crown Attorney’s Office and
Courthouse, 129 Wyndham St. apartments, Health Unit at the Terrace, Arthur Medical Centre,
Mount Forest Community Services Centre, and the Clifford Medical Centre.
 The capital budget includes provisions for improvements at County Facilities ($310K over 5 years)
and vehicle lifecycle replacements ($100K over 5 years).
 Renovations to downtown administration buildings to accommodate office relocations due to
capacity issues. Includes renovations to the lower levels of the Gaol and Admin Centre, 15 and 21
Douglas. The moves involve staff from Child Care, IT, Treasury and Human Resources. Costs are
estimated at $750,000.
 A $100,000 provision is included for a County space needs study.
 Projects are fully funded from the Property Reserve.

Provincial Offences Act Revenues
 Provincial offenses revenue have been maintained at similar levels to 2016 based on
correspondence from the City of Guelph indicating the expected revenue level for 2017. The
contingency reduction of revenue of $50,000 from 2016 has been maintained in each year of the
five year plan.
 Annual debt charges for the POA court facility amounts to $257,200
 The 2017 – 2021 capital budget includes the County’s portion of capital equipment replacements
totaling $120,000 over the five years and is fully funded from the tax levy.

Ambulance
 The response time improvement plan was approved by the City of Guelph in its 2017 budget. The
service enhancement includes four additional paramedics to serve the Town of Erin enabling a 24-
hour operation at this location (up from 12 hrs/day). This results in an impact to the County levy of
$225,000.
 The County funds roughly 40% of the municipal share of Land Ambulance expenditures (based on
calls for service) and has a levy requirement of $3,685,100 in 2017
 The reserve transfer to fund Ambulance capital needs has been increased to $400,000
 The capital plan includes replacement ambulances, related equipment and IT requirements. Total
County costs over the five-years are $2.1 million and are fully funded from the Ambulance Reserve.

Hospital Financing
 Council committed $14.4 million to County Hospitals to be distributed as follows:
 $10.0 million to Groves Memorial Hospital
 $2.2 million to Louise Marshall Hospital
 $2.2 million to Palmerston District Hospital – distributed in 5 equal payments commencing in
2015
 $8.5 million of the commitment remains to be transferred, $6.7 million to be debt financed with
remaining funding to come from the Hospital Capital Grant Reserve.

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Public Health
 The 2017 County portion of the budget (net of loan repayments) for WDGPH is $2,257,000 which
represents a 2.4% increase over 2016

General Expenditures and Revenues
 The Ontario Municipal Partnership Fund grant for 2017 is budgeted at $2,087,200, which
represents a reduction of $368,300 (or 15%) from 2016 (+0.4% impact on the tax levy)
 Interest revenue on investments is projected to be $2.98 million which is transferred to reserves
and reserve funds
 Payments-in-lieu of taxes (PILs) and supplementary tax revenue are estimated at $1.55 million
 The County’s share of MPAC’s 2017 budget for property assessment services is $1,407,700
 Tax write-offs are estimated at $1.0 million
 Other items in this budget include bank charges, postage and telephone costs, and general
insurance/legal expenditures

Staffing Summary
The 2017 budget incorporates a number of staffing adjustments which are summarized on page 13 of
the budget package.

Five-year levy and tax projection
Based on projects and service levels proposed in the budget, the projected five-year levy and tax
impacts are as follows:

2016 2017 2018 2019 2020 2021
$87,855 $91,621 $96,204 $100,860 $106,359 $112,006
2.5% 3.1% 4.0% 3.8% 4.4% 4.3%

Capital Summary

The 2017-2021 Capital Plan contemplates a $163.4 million investment in infrastructure, facilities and
equipment.
 Approximately 68% of projected capital spending relates to roads and bridges
 Social Services (Housing, Children’s Early Years and Ontario Works) accounts for an additional 14%
 Hospital Capital Grants 5.2%
 Solid Waste Services 4.1%
 Library Services 2.9%
 The remaining areas of investment include technology, ambulance, POA, police, museum, homes
for the aged, economic development, emergency management, green legacy and property.

Facility development projects include:
 Construction of a new library branch in Hillsburgh
 Construction of the Erin Garage, design for Arthur Garage
 Ongoing improvements at County landfill sites and transfer stations
 Construction of new Affordable Housing building providing 11 new units in Palmerston
 Work to improve the condition of the County-owned social and affordable housing units
Long-Term Borrowing

The County’s long term borrowing plan is ramping up over the course of the five year forecast with ten
issues funding nine projects, totaling $22.3 million and accounting for 13.6% of total capital funding.
56.2% of the capital plan is to be funded from the tax levy and reserves.

County debt outstanding is projected at $26.8 million in 2017, which is made up of $24 million in tax-
supported debt and $2.8 million in growth supported debt (total debt outstanding peaked at $37.6
million in 2013). Debt servicing costs will top out at $5.8 million ($4.9 million tax supported, $860,000
growth supported). Debt charges do not exceed 5.5% of the County tax levy over the five-year plan.

County of Wellington Debt Outstanding 2016-2021
($ Million)
$40
$35
$30
$25
$20
$15
$10
$5
$-
2016 2017 2018 2019 2020 2021
Tax Supported Debt DC Supported Debt

The budget and five-year plan represent the levels of service and capital investment desired by County
Council. The proposed 2017 budget builds on previous budgets by improving services, renewing
facilities and infrastructure. Budget pressures to fund improvements and replacements are driving the
reliance on long term borrowing.
Recommendation:
That the 2017 Operating Budget and 2017-2021 Capital Budget be approved; and

That staff be directed to prepare the necessary by-law.

Respectfully submitted,

Ken DeHart, CPA, CGA
County Treasurer
THE COUNTY OF WELLINGTON
2017 OPERATING BUDGET
2015 2016 2017 2017 2017 Net Budget Change
net budget net budget expenditure revenue net budget $ %
Programmes and Services
Social Housing 4,259,300 4,514,900 33,257,400 28,412,400 4,845,000 585,700 13.8%
Ontario Works 1,729,800 1,601,100 27,916,000 26,335,100 1,580,900 -148,900 -8.6%
Roads and Bridges 20,680,600 22,232,800 28,940,300 3,470,300 25,470,000 4,789,400 23.2%
Wellington Terrace 7,588,100 7,816,800 21,108,700 13,107,000 8,001,700 413,600 5.5%
Police Services 17,023,600 16,319,200 17,085,700 358,900 16,726,800 -296,800 -1.7%
Child Care Services 981,600 950,100 18,403,700 17,389,200 1,014,500 32,900 3.4%
Solid Waste Services 4,439,800 4,812,200 10,529,100 5,392,500 5,136,600 696,800 15.7%
County Library System 7,960,400 7,325,800 7,004,300 414,100 6,590,200 -1,370,200 -17.2%
Land Ambulance 3,963,100 3,849,700 4,085,100 0 4,085,100 122,000 3.1%
Planning and Development 2,335,500 2,242,200 2,695,800 316,200 2,379,600 44,100 1.9%
Public Health 2,497,400 2,551,500 2,601,100 0 2,601,100 103,700 4.2%
County Museum and Archives 1,940,200 1,930,000 2,233,800 221,500 2,012,300 72,100 3.7%
Property Assessment 1,357,500 1,365,500 1,407,700 0 1,407,700 50,200 3.7%
Affordable Housing 500,000 500,000 1,553,400 1,053,400 500,000 0 0.0%
Economic Development 1,040,500 1,361,700 1,302,900 178,500 1,124,400 83,900 8.1%
Green Legacy 666,000 747,800 752,400 2,000 750,400 84,400 12.7%
Emergency Management 605,700 615,600 687,800 687,800 82,100 13.6%
Provincial Offences -124,100 35,200 282,200 251,200 31,000 155,100 -125.0%
Grants 1,250,900 1,554,300 55,900 0 55,900 -1,195,000 -95.5%
Subtotal 80,695,900 82,326,400 181,903,300 96,902,300 85,001,000 4,305,100 5.3%
General Government
Office of the CAO and Clerk 2,894,600 3,493,700 5,265,200 1,656,100 3,609,100 714,500 24.7%
County Property 1,125,100 1,153,500 3,143,200 1,856,700 1,286,500 161,400 14.3%
Human Resources 792,700 788,800 1,955,100 1,042,400 912,700 120,000 15.1%
Treasury 1,249,100 1,363,500 2,022,800 489,800 1,533,000 283,900 22.7%
County Council 980,100 970,900 1,029,300 18,700 1,010,600 30,500 3.1%
Subtotal 7,041,600 7,770,400 13,415,600 5,063,700 8,351,900 1,310,300 18.6%
Non-Programme Expenditures and Revenues
General Expenses/Revenues -1,683,000 -910,400 4,938,100 5,122,600 -184,500 1,498,500 -89.0%
PILs and Supplementary taxes -1,531,000 -1,331,100 0 1,547,000 -1,547,000 -16,000 1.0%
Subtotal -3,214,000 -2,241,500 4,938,100 6,669,600 -1,731,500 1,482,500 -46.1%
TOTAL 84,523,500 87,855,300 200,257,000 108,635,600 91,621,400 7,097,900 8.4%
TAX RATE CALCULATION AND IMPACT
2015 2016 2017 $ change % change
Weighted Assessment ($ M) $13,024 $13,668 $14,267 $ 5 98.7 4.38%
Non Phase-in assessment growth 1.24%
County tax summary
Residential tax rate 0.648995% 0.642780% 0.642206%
Per $100,000 of Assessment (2016) $ 93,718 $ 96,860 $ 100,000
Taxes per $100,000 of Assessment $ 608 $ 623 $ 642 $ 20 3.1%
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County of Wellington 
                                   5 Year Opera(cid:415)ng Budget 
                                      And Tax Rate Forecast 

Approved Projected
2016 2017 2018 2019 2020 2021

EXPENDITURE ($000's)
Salaries, Wages and Benefits $51,619 $54,692 $56,709 $59,433 $62,183 $65,065
Supplies, Materials and Equipment $8,644 $9,537 $9,654 $9,926 $10,205 $10,502
Purchased Services $22,791 $25,122 $25,792 $26,602 $27,502 $28,407
Social Assistance $47,519 $50,185 $51,264 $52,207 $53,203 $54,234
Transfer Payments $23,802 $24,148 $25,145 $26,234 $27,236 $28,674
Minor Capital Expenses $1,361 $1,116 $1,011 $1,044 $969 $942
Debt Charges $4,514 $4,527 $4,739 $4,716 $5,214 $5,755
Insurance and Financial $2,689 $3,195 $3,251 $3,320 $3,387 $3,459
Internal Charges $6,175 $6,553 $6,732 $6,917 $7,106 $7,300
Total expenditures $169,115 $179,074 $184,297 $190,398 $197,004 $204,339
yr/yr % change 5.9% 2.9% 3.3% 3.5% 3.7%

TRANSFERS ($000's)
Transfer from Reserves ($2,075) ($1,473) ($1,358) ($1,687) ($2,095) ($2,098)
Transfer to Capital $11,270 $10,641 $12,489 $12,858 $13,618 $13,885
Transfer to Reserves $12,429 $12,014 $11,308 $11,876 $12,270 $12,568
Total Transfers $21,624 $21,182 $22,439 $23,047 $23,793 $24,354
yr/yr % change -2.0% 5.9% 2.7% 3.2% 2.4%

REVENUE ($000's)
Grants and Subsidies $53,764 $57,017 $58,102 $59,022 $59,537 $60,253
Municipal Recoveries $22,559 $22,375 $22,515 $23,095 $23,878 $24,848
Licences, Permits and Rents $7,033 $7,331 $7,564 $7,591 $7,620 $7,650
Fines and Penalties $75 $50 $50 $50 $50 $50
User Fees and Charges $7,804 $9,048 $9,240 $9,434 $9,634 $9,835
Sales Revenue $1,193 $1,265 $1,290 $1,316 $1,342 $1,367
Other Revenue $2,974 $3,107 $3,123 $3,211 $3,302 $3,396
Internal Recoveries $6,150 $6,896 $7,086 $7,286 $7,481 $7,675
PILs and Supplementary Taxes $1,331 $1,547 $1,563 $1,579 $1,595 $1,611
Total revenue $102,884 $108,636 $110,532 $112,584 $114,438 $116,687
yr/yr % change 5.6% 1.7% 1.9% 1.6% 2.0%

TAX LEVY REQUIREMENT $87,855 $91,621 $96,204 $100,860 $106,359 $112,006
yr/yr % change 3.4% 4.3% 5.0% 4.8% 5.5% 5.3%

Weighted Assessment ($ Millions) $13,668 $14,267 $14,837 $15,431 $16,048 $16,690
yr/yr % change 4.85% 4.38% 4.00% 4.00% 4.00% 4.00%
Phase in growth % 3.24% 3.14% 3.00% 3.00% 3.00% 3.00%
Real growth % from new properties 1.61% 1.24% 1.00% 1.00% 1.00% 1.00%

County tax summary
Residential tax rate 0.6428% 0.6422% 0.6484% 0.6536% 0.6628% 0.6711%

Per $100,000 of Assessment $ 96,860 $ 100,000 $ 103,000 $ 106,090 $ 109,273 $ 112,551
Taxes per $100,000 of Assessment $ 623 $ 642 $ 668 $ 693 $ 724 $ 755
yr/yr $ change $ 15 $ 20 $ 26 $ 26 $ 31 $ 31
yr/yr % residential impact 2.5% 3.1% 4.0% 3.8% 4.4% 4.3%
yr/yr % budget impact 2.5% 3.1% 4.0% 3.8% 4.4% 4.3%

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COUNTY OF WELLINGTON
2017 BUDGET ADJUSTMENTS
tax impact
Dept Description $ amount %
2017 County Tax Levy as presented to Council on January 9, 2017 $ 91,791,300 3.3%
Police Services Board - January 11, 2017
Defer Reserve Transfer in Lieu of New Officer by one year - with
corresponding decreases on one officer value in future years $ (169,900) -0.2%
(169,900) -0.2%
Revised 2017 Tax Levy Requirement 91,621,400 3.1%
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County of Wellington 
                          2017‐2021 Capital Budget Summary 
                                      (All figures in $000’s) 
Project Expenditure                   
Programme / Service  2017  2018  2019  2020  2021  5 Yr Total  % of Total 
Roadways  $16,830   $20,600   $22,140   $30,215   $21,780   $111,565   68.3%  
Solid Waste Services  $340   $1,310   $640   $2,200   $2,210   $6,700   4.1%  
County Property  $925   $195   $50   $90   $0   $1,260   0.8%  
Planning  $180   $0   $0   $0   $0   $180   0.1%  
Green Legacy  $0   $0   $0   $120   $36   $156   0.1%  
Emergency Management  $80   $0   $0   $50   $0   $130   0.1%  
CAO & Clerks  $325   $570   $330   $375   $310   $1,910   1.2%  
Police Services  $55   $25   $25   $0   $0   $105   0.1%  
Museum  $85   $60   $200   $525   $0   $870   0.5%  
Library Services  $4,135   $250   $75   $75   $150   $4,685   2.9%  
Housing Services  $4,080   $4,295   $3,214   $3,244   $3,249   $18,082   11.1%  
Affordable Housing  $3,303   $54   $85   $51   $77   $3,570   2.2%  
Wellington Terrace  $285   $243   $205   $245   $263   $1,241   0.8%  
Economic Development  $30   $30   $1,030   $0   $0   $1,090   0.7%  
Hospital and Other Capital Grants  $440   $440   $7,640   $0   $0   $8,520   5.2%  
Ambulance Services  $362   $560   $455   $338   $376   $2,091   1.3%  
Ontario Works  $85   $1,055   $0   $0   $0   $1,140   0.7%  
Provincial Offences Act (POA)  $25   $13   $32   $27   $23   $120   0.1% 
Total Expenditure  $31,565   $29,700   $36,121   $37,555   $28,474   $163,415   100.0%  

Project Financing                      

Recoveries  $3,418   $4,917   $3,055   $2,331   $2,409   $16,130   9.9%  
Subsidy  $3,591   $2,390   $1,820   $1,820   $1,820   $11,441   7.0%  
Federal Gas Tax Funding  $2,360   $2,210   $2,800   $4,255   $2,500   $14,125   8.6%  
Current Revenues  $10,641   $12,129   $12,121   $12,449   $12,340   $59,680   36.5%  
Reserves  $8,827   $5,810   $6,434   $5,787   $5,296   $32,154   19.7%  
Development Charges  $728   $1,244   $691   $3,513   $1,409   $7,585   4.6%  
Growth Related Debentures  $0   $1,000   $2,500   $0   $0   $3,500   2.1%  
Debentures  $2,000   $0   $6,700   $7,400   $2,700   $18,800   11.5%  
Total Financing  $31,565   $29,700   $36,121   $37,555   $28,474   $163,415   100.0%  
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E(cid:248)(cid:155)(cid:145)(cid:231)(cid:227)(cid:174)(cid:242)(cid:155) S(cid:231)(cid:195)(cid:195)(cid:131)(cid:217)(cid:249) ‐ O(cid:214)(cid:155)(cid:217)(cid:131)(cid:227)(cid:174)(cid:196)(cid:166) 

2017 Opera(cid:415)ng Budget Revenues ‐ $200.3 Million 

The breakdown of opera(cid:415)ng budget     
revenues of $200.3 million are shown on   
the pie chart to the right.  Property taxes 
make up 46% of the County’s revenues, 
followed by grants and subsidies totalling 
28%.  Municipal recoveries amoun(cid:415)ng to 
11% are the next largest revenue source 
for the County budget. 

Descrip(cid:415)ons of the County’s major        
revenue sources follow. 

2017 County Property Tax Requirement ‐ $91.6 Million 

Property taxes remain the County’s largest and 
most important source of revenue.  The pie 
chart to the right shows how County property 
tax dollars are distributed to each of the  
County’s services.  Over 46% of property tax   
dollars go to two services: roads and policing.  
Social services, long‐term care (Terrace) and 
health and ambulance services make up       
another 25%. 

All other services including the County library 
system, museum and archives, solid waste  
services, planning, green legacy and          
emergency management, and administra(cid:415)on 
make up the remainder of the tax bill. 

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