FIRST MEETING OF THE
2006 BUDGET SUB-COMMITTEE
TOWN OF
Canada Room,
MINUTES
|
Budget Sub-Committee Councillor D. Horchik, Chair Regional Councillor F. Scarpitti ( Regional Councillor J. Heath Regional Councillor J. Jones Councillor S. Daurio Councillor E. Shapero Councillor K. Usman Councillor A. Chiu Others: Mayor D. Cousens ( Councillor J.
Webster Councillor G.
McKelvey |
Staff J. Livey, Chief
Administrative Officer J. Baird,
Commissioner of Development Services J. Sales,
Commissioner of Community & Fire Services A. Taylor,
Commissioner of Corporate Services D. McClean, Fire
Chief B. Cribbett,
Treasurer J. Lustig, Director
of Financial and Client Services S. Chait, Director
of Economic Development S. Laing, Director
of F. Wong, Manager,
Financial Planning R. Raman, Senior
Financial Analyst J. Kee, Committee
Clerk |
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|
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The first 2006 Budget
Sub-Committee meeting convened at the hour of
1.
2006
BUDGET SCHEDULE (7.4 & 7.5)
Mr. Joel Lustig, Director of Financial and Client Services, briefly reviewed the proposed agenda for the Budget Sub-Committee meeting this date.
Members were advised that Budget Sub-Committee meetings have been scheduled as follows: October 11, November 8, and November 22. A presentation is to be made to the December 5th General Committee meeting and the Budget Breakfast is scheduled for December 6th. It is expected that Council will approve the 2006 Operating, Capital and Waterworks Budget at Committee and Council meeting on December 13th. It was noted that information would be brought to General Committee meetings to supplement the Budget Sub-Committee meetings, as required.
2.
2006
BUDGET PROCESS (7.4 & 7.5)
The Director of
Financial and Client Services briefly reviewed the Town's 2006 budget process,
advising that the preliminary budget is based on a combination of the economic
forecast, Business Plans (growth and new initiatives), the Reserve Study, the
Recreation, Library, Culture and Parks Master Plan, and Councillor
Requests. The Preliminary Budget is
reviewed by CCC (
Committee was given detailed information relating to the many budget pressures that must be taken into account. These include: wage settlements; municipal service contracts, such as waste collection, street light and winter maintenance; infrastructure, including repair and replacement of existing roads and facilities; growth; Provincial legislation, including OMERS and Bill 175; and economic trends, including interest rate fluctuations and inflation. The total operating impact of budget pressures for 2006 is estimated to be approximately $9.0 million.
3.
2006
OPERATING BUDGET OVERVIEW (7.4 & 7.5)
The Director of
Financial and Client Services advised that by following an incremental
budgeting method, all accounts at the 2005 base budget levels have been
adjusted to allow for an expected increase in assessment growth of 4.0%, and an
increase in investment income due to higher portfolio balances. Allowances have also been made for expected
increases relating to salary and benefits; continued ramp-up for Cornell Fire
Station & Cornell Community Centre; contract escalations; infrastructure
growth; winter maintenance requirements and the operating budget contribution
to capital. Committee was advised that these
allowances present a forecasted shortfall of $5.3 million, and a projected base
budget tax rate increase of 6.41%.
Staff then provided an
overview of the preliminary Business Unit Plans, which include program growth
related staffing and other business plan expenditures, requiring an additional increase
of 2.45%, presenting a total projected tax rate increase of 8.86%.
An option to use a
portion of the Gas Tax Revenue to decrease the tax rate by 2.41% was presented.
4.
2006
CAPITAL BUDGET OVERVIEW (7.4 & 7.5)
The Director of
Financial and Client Services reviewed the 2006 Capital focusing on funding
sources as well as use of funds.
Highlights of the preliminary 2006 Capital budget was also presented to Committee.
5.
DISCUSSION
(7.4 & 7.5)
Committee queried the funding of the program growth related staffing and
requested clarification of the term “part-time conversion”. Details clarifying the information presented
this date regarding the part-time conversions will be provided to
Committee. This will include a cost break
down for part time conversions and new full time positions.
In response to a query for more details regarding Fire Department staffing, staff advised that a report is being prepared for Council consideration.
Staff was requested to examine the feasibility of hiring full-time staff for the removal of illegal signs.
The matter of utilizing the federal gas tax revenue to offset the tax rate increase was raised, and concern was expressed that the revenue is to be used for specific infrastructure projects only. Committee was advised that various options will be presented.
Concern was expressed regarding the projected high tax rate increase. Staff advised that options and recommendations to reduce the tax rate will be presented to Committee at the next meeting.
Committee requested additional information on the Life Cycle & Capital Reserve process, and its impact for 2006.
The Communities in Bloom program was raised, and staff advised that a detailed report will be presented regarding the 2005 program and plans for the 2006 “Nationals” program.
There was some discussion regarding funding for the damage sustained from the August 19th storm, and staff provided details relating to the proposal for a part-time Diversity Co-ordinator.
6.
NEXT
STEPS (7.4 & 7.5)
Information was presented that a review of Capital projects by exception
will take place at the next Budget Sub-Committee meeting to be held on November
8th in the Canada Room, beginning at
7.
RESPONSES
TO COUNCILLOR’S REQUESTS (7.4 & 7.5)
Committee had before it a summary of the responses to the Councillors’ request relating to the 2006 Budget.
Staff was requested to reconsider the Councillor request for lighting improvements in the South Hall at Thornhill Community Centre.
Staff was also requested to bring forward the list of Councillor requests from last year that were below the line and did not make the list last year.
ADJOURNMENT
The first 2006 Budget Sub-Committee meeting
adjourned at