A presentation given by Dean Hammond, Treasurer and General Manager of Corporate Services with the City of Brandon

1. 2012 FINANCIAL PLAN
PUBLIC HEARING
March 5, 2012
Dean Hammond, Treasurer & GM of
Corporate Services
1

2. AGENDA
 2012 Operating Revenues / Expenditures
 2012 Capital Expenditures
 Debt Position & Debt Ratios
 Residential Tax Impact
 Utilities / Utilities Capital Expenditures
 Next Steps
 Expense Management
2

3. PROPOSED OPERATING /
UTILITIES BUDGETS
 General Revenues / Expenditures $73.1m
 Utilities Revenues / Expenditures $17.7m
 Total Budget $90.8m
 4.44% Mill Rate Decrease From 2011
3

4. REVENUES - $73.1m
$3.2 , 4% $1.1 , 2%
$11.7 , 16% Property Taxes
Government Transfers
$36.9 , 50%
User Fees and Sales of
$20.2 , 28% Goods
Permits, Licenses, and
Fees
Other Income
4

5. EXPENSES - $73.1m
$2.6 , 4% Salaries, Wages, &
$1.6 , 2%
$2.9 , 4% Benefits
Reserve Appropriations
$4.1 , 6%
$5.5 , Contract Services
7%
Grants and Contributions
$7.4 , 10% $41.5 , 57%
Materials, Supplies, &
$7.5 , 10% Equipment Purchases
Debt Servicing Costs
Utilities
Capital Contributions
5

6. Utilities, $0.04 Capital
Debt Servicing
Contributions,
Materials, Supplies,
& Equipment
EXPENSES - $73.1m
Costs, $0.04
$0.02
Purchases, $0.06
Administrative
Salaries, $0.06
Protective Services
Salaries, $0.26
Grants and
Contributions,
$0.07
Operations
Salaries, $0.17
Development
Services Salaries, Contracted Reserve
$0.08 Services, $0.10 Appropriations,
$0.10
Where Every Dollar of Tax Goes...
6

7. 2012 CAPITAL EXPENDITURE
HIGHLIGHTS (Reserve Funded)
2012 Total Capital Upgrades $9.4m
8TH Street Bridge Analysis $300k
Centennial Auditorium Door Replacements $80k
Landfill Excavation & Liner $275k
Vehicle Replacements
- Four Loaders $1.0m
- Airport Fire Truck $650k
- Five Dump Trucks $735k
- Other Vehicles (24) $1.65m
7

8. 2012 CAPITAL EXPENDITURE
HIGHLIGHTS (Reserve Funded)
Fire Equipment $336k
Fire Pumper Truck / Ladder Refurbish $550k
Sidewalks / Turn Signals / Kirkaldy Dr. $435k
Upgrades
Parks Upgrades $115k
Police Equipment $491k
Police Vehicles (7 Replacements) $342k
Rec Centre Upgrades $225k
Sportsplex Upgrades $117k
8

9. 2012 CAPITAL EXPENDITURE
HIGHLIGHTS (Reserve Funded)
Transit Auto-Fare System $500k
Handi-Transit Bus Replacements (Four) $565k
Drainage Projects $475k
9

10. 2012 CAPITAL EXPENDITURE
HIGHLIGHTS (General Fund)
2012 Total Capital Upgrades $589k
Expand Community Alerting System $42k
Walkways / Trails Expansions $100k
Black Property Land Use Study $150k
Drainage Project – 34th Street $167k
10

11. DEBT
2012 General (Tax Supported) Debt* $30.8m
2012 Utility Rate Supported Debt $4.7m
2012 Total Debt $35.5m
 2012 Debt Position Decreased Slightly.
* Including Police Station
11

12. 22%
21% 20.0%
20%
19%
DEBT
2012 Debt Position
18%
17%
16% Actual City Debt Ratio
15%
14%
Maximum Allowable Debt Ratio
13%
12%
% 11%
10%
9%
8% 7.0%
7%
6% 5.4%
5%
4%
3%
1.8%
2%
1%
0%
Debt / Assessment Debt Service Costs / City Revenues
12

13. RESIDENTIAL TAX IMPACT
Municipal Tax Payer Impacts 2011 2012
Budget Budget
Assessed Value* $ 200,000 $ 219,600
Portioning @ 45% $ 90,000 $ 98,820
Municipal Mill Rate 19.969 19.082
Municipal Tax Due $ 1,797 $ 1,886
Change due to Assessment* $ 176.13
Change due to Mill Rate $ (87.62)
Total Change from 2011 $ 88.51
Percentage Increase 4.9%
13

14. RESIDENTIAL TAX IMPACT
School Division Tax Payer Impacts 2011 2012
Budget Budget
Assessed Value* $ 200,000 $ 219,600
Portioning @ 45% $ 90,000 $ 98,820
Municipal Mill Rate 16.270 15.375
Municipal Tax Due $ 1,464 $ 1,519
Change due to Assessment* $ 143.50
Change due to Mill Rate $ (88.43)
Total Change from 2011 $ 55.07
Percentage Increase 3.8%
14

15. RESIDENTIAL TAX IMPACT
Combined Municipal & School 2011 2012 Change
Division Budget Budget
Municipal Tax Due $ 1,797 $ 1,886 $ 88.51
School Division Tax Due $ 1,464 $ 1,519 $ 55.07
less: Homeowner Rebate $ (700) $ (700) $ -
Total Taxes Due $ 2,562 $ 2,705 $ 143.58
15

16. 2012 UTILITIES
 Utilities Budget decreased $400k to $17.7m
 Treasury & Engineering Currently Undertaking
Rate Structure Analysis
 AnticipatingPUB Proposal For Q3 which will
be incorporated in 2013
 NewRates Will Incorporate Phase III of
Combined Wastewater Treatment Facility 16

17. 2012 CAPITAL EXPENDITURE
HIGHLIGHTS (UTILITY RESERVE)
2012 Total Utility Reserve Capital Upgrades $8.6m
WTF Emergency Water Supply $1.5m
3rd Street Dam Replacement $1.0m
WTF Upgrades $250k
Construction Contribution for IWWTF $5.7m
Large Sewer Camera $100k
17

18. 2012 CAPITAL EXPENDITURE
HIGHLIGHTS (UTILITY FUNDED)
2012 Total Utility Funded Capital Upgrades $800k
Watermain Replacements $300k
Water Treatment Facility Master Plan Study $100k
Water Treatment Facility Intake Structure $250k
18

19. NEXT STEPS
of Financial Plan and 1st
 Adoption
Reading of Tax Levy By-law March 5th
 2nd
& 3rd Readings of Tax Levy By-law
March 19th
19

20. 2012 / 2013 EXPENSE
MANAGEMENT
 3% Goal
 Lean Projects
 Opportunities List (28)
 New / Expanded Revenues
 Sustainable Cost Reduction Measures
 Budget Buddies
 Vacancy Management / Succession Planning /
Long-Term Labour Strategies
 Performance Management
 Budgeting Process
 Separate Capital, Fleet, & Operating Budgets
 Budget Reviews / Budget Buddies 20

21. Questions?
21