2010 Budget Overview

April 7, 2010

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Overview This is the 2010 Budget document as recommended by the

Budget Steering Committee to be presented to Council as a whole.

Key factors are as follows:

1. The tax levy for 2010 in this document is:2009 Tax Levy $ 50,301,8542009 Growth 300,000Total $ 50,601,854

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2. The 2010 municipal tax rate is 4.16% lower than the 2009 tax rate for all classes. In 2010, the residents of the City of Cornwall will experience the second year (4 year phase-in) of an average increase in assessed value of 4.2%. As a result of the reduction in the municipal tax rate, the average property in Cornwall should not experience an increase in the dollar value of their municipal taxes.

3. Capital projects funded by the tax base in the 2010 Budget document are $2,134,850 ($1,747,508 – 2009). In 2009 , the City reduced the tax based funding for Capital projects by $583,000 by utilizing funds from the Investing in Ontario Grant.

Overview con’t

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Operating and Capital Summary'09 Budget '10 Submission

Revenue

Taxation $50,301,854 $50,601,854

Operating $87,035,715 $85,271,439

Capital $7,887,616 $809,550

Total Revenue $145,225,185 $136,682,843

Expenditures

Operating $115,561,124 $112,329,104

Capital $12,096,124 $5,637,400

Tfr Outside Agencies $3,570,354 $3,959,279

Police Services $15,063,857 $15,803,569

Internal Transfers -$1,066,274 -$1,046,509

Total Expenditures $145,225,185 $136,682,843

Total $0 $0

* Note: additional $300,000 is related to an increase in assessment from 2009 supplementary taxation now listed on

the 2010 roll.

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Operating Summary'09 Budget '10 Submission

Revenue $87,035,715 $85,271,439

Less:

Expenditures $115,561,124 $112,329,104

Tfr Outside Agencies $3,570,354 $3,959,279

Police Services $15,063,857 $15,803,569

Internal Transfers -$1,066,274 -$1,046,509 % change -0.69%

Total Operating financed by taxation -$46,093,346 -$45,774,004 $ change -$319,342

'09 Budget '10 Submission

Net Operating -$46,093,346 -$45,774,004

Less Gas Tax Revenue $2,461,000 $2,693,000

Adjusted Operating -$48,554,346 -$48,467,004

% change -0.18%

$ change -$87,342

It is important to note that Federal Gas Tax is recognized as revenue in the operating budget, but applied to infrastructure capital projects through the City’s annual report to AMO

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Capital Summary'09 Budget '10 Submission

RevenueMoH $180,000 $209,700

MTO $422,400 $97,000

Other Ontario $4,373,491 $0

Recoveries $569,000 $0

United Counties $145,125 $249,850

Net Reserves $2,197,600 $253,000

Donations $0 $0

Progress Fund $0 $0

Less:Gross Capital Costs $12,096,124 $5,637,400 % change 14.72%

Total Capital financed by taxation -$4,208,508 -$4,827,850 $ change $619,342

'09 Budget '10 Submission

Net Capital -$4,208,508 -$4,827,850

Add: Federal Gas Tax $2,461,000 $2,693,000

Adjusted Net Capital -$1,747,508 -$2,134,850

% change 22.17%

$ change $387,342

It is important to note that Federal Gas Tax is recognized as revenue in the operating budget, but applied to infrastructure capital projects through the City’s annual report to AMO

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2010 Tax Levy by Class

Residential 28,384,679$ 56.1%Multi-Res 5,066,755$ 10.0%Commercial 14,799,612$ 29.2%Industrial 2,134,605$ 4.2%Pipeline 206,074$ 0.4%Farm 10,130$ 0.0%Total Tax Levy 50,601,855$ 100.0%

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Shifts between Classes:

Taxation

Assumptions:1. 2010 Share is using the 2nd year of phased in assessment values from

MPAC (per the November ‘08 assessment).2. Properties with lower assessment were fully realized in 2009 (i.e. they

were not phased in.8

2009 SHARE 2010 SHARE % of Total % of Total

2009 2010

Residential $28,204,701 $28,384,679 56.07% 56.09%

Multi-Res $5,075,299 $5,066,755 10.09% 10.01%

Commercial $14,597,821 $14,799,612 29.02% 29.25%

Industrial $2,207,620 $2,134,605 4.39% 4.22%

Pipeline $205,831 $206,074 0.41% 0.41%

Farm $10,581 $10,130 0.02% 0.02%

50,301,854 50,601,854 100.00% 100.00%

Difference

$243-$452

$300,000

-$73,015

$179,977-$8,545

$201,791

Taxation con’t

Assessment:

• 2010 will be the 2nd year of a phase in for properties with an increased assessed value based on MPAC’s property assessment from November 2008.

• The average assessed property value for the residential sector in the City of Cornwall was $122,199 in 2009 and is estimated to be approximately $127,355 in 2010.

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Tax rates 2007 % Change 2008 % Change 2009 % Change 2010 Est % ChangeResidential 0.01692080 0.24% 0.01736288 2.61% 0.01707824 -1.64% 0.01636759 -4.16%Multi-Res 0.03975036 0.24% 0.04078889 2.61% 0.04012021 -1.64% 0.03845076 -4.16%

Commercial 0.03324938 0.24% 0.03411807 2.61% 0.03355875 -1.64% 0.03216233 -4.16%Industrial 0.04450172 0.24% 0.04566439 2.61% 0.04491578 -1.64% 0.04304678 -4.16%Pipeline 0.02574839 0.24% 0.02642110 2.61% 0.02598796 -1.64% 0.02490657 -4.16%Farm 0.00423020 0.24% 0.00434072 2.61% 0.00426956 -1.64% 0.00409190 -4.16%

Taxation con’t

Proposed municipal tax rates for 2010 are 3.27% lower than the comparable rates for 2007.

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Operating Revenue(excluding Police Services)

'09 Budget '10 SubmissionTaxation/PIL $1,834,980 $1,871,275Provincial $55,269,129 $53,696,722Federal $3,025,338 $3,108,331Municipal $9,610,587 $7,705,879User Fees $13,293,363 $14,359,580Internal Tfr $2,798,246 $2,872,442Reserves $1,204,072 $1,657,210Subtotal $87,035,715 $85,271,439

% change -2.03%$ change -$1,764,276

The 2010 submission shows a decrease in revenue of $1,764,276. This represents a 2.03% decrease from the 2009 approved budget.

Major variances (000s): ($2,910) OMPF (uploading ODSP) ($1,653) Counties (OMPF related to ODSP) ($ 200) Investment Income $ 148 Building Permits $ 55 GSDL Resident Revenue $ 240 GSDL Ministry of Health $ 460 Tipping Fees/Recycled Mtl $ 700 SSS MCSS Revenue $ 463 Other Ontario

- $365 SSS: Income Mtce/OW

- $ 98 Social Housing $ 80 Interest on Taxes $ 95 Transit Rider Revenue $ 69 Transit (internal recovery HT) $ 76 Recreation Services

(internal revenue for recovery of expense)

$ 119 Recreation Arena Rental $ 90 Federal Grant (Eco.Dev. MP) $ 95 Hardware/Software recovery

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Operating Expenditures(excluding Police Services/Outside Agencies)

The departmental requests resulted in a year over year expenditure decrease of $3,232,020. This represents a 2.80% decrease in expenditures from the 2009 approved budget

'09 Budget '10 SubmissionSalary $43,989,277 $46,061,010PoG $7,623,430 $7,892,280S&R $17,670,832 $18,086,859Financial $46,277,585 $40,288,955Total $115,561,124 $112,329,104

% change -2.80%$ change -$3,232,020

Salary and Benefits 4.71% or $2,071,733

Purchase of Goods 3.53% or $268,850

Services and Rents 2.35% or $416,027

Financial -12.94% or ($5,988,630)

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Purchase of Goods Comparison

'09 Budget '10 SubmissionPoG $7,623,430 $7,892,280

% change 3.53%$ change $268,850

Increase of 3.53% or $268,850 Major variances primarily relates to

increases/(decreases) in (000’s): ($121) Gasoline and Fuel $ 30 Janitorial Supplies $ 25 EMS - Mask Tester $ 36 EMS - Replacement

Bedding $ 60 Computer Hard./Software $ 59 Equipment

- $18 Firefighting gear

- $35 GPS vehicle units

$ 62 GSDL Raw Food Costs $ 38 EMS Vehicle Mtce (Transit

Contract)

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Services & Rents Comparison

'09 Budget '10 SubmissionS&R $17,670,832 $18,086,859

% change 2.35%$ change $416,027

Increase of 2.35% or $416,027

Major variances primarily relates to increases/(decreases) in (000’s):

$130 Eco.Dec. Master Plans ($251) Social Support Services $269 Contracted Services - $ 45 Election Costs

- $ 70 Snow removal

- $ 40 Mowing

- $140 Solid Waste- Leachate Collection

- ($77) S.H. (2009 one-time capital grant)

- ($30) Economic Development – Web Design

- $ 75 Council Chambers

$122 Leased Vehicles

$ 80 Leased Agreements $ 69 Transit (internal expense HT)

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Financial Comparison

'09 Budget '10 SubmissionFinancial 14,202,641 12,606,338 SSS Tfr 30,064,384 26,110,748 Reserves 2,010,560 1,571,869 Total 46,277,585 40,288,955

% change -12.94%$ change (5,988,630)

Decrease of -12.94% or ($5,988,630)

Major variances primarily relates to increases/(decreases) in (000’s):

($3,953) SSS – upload of ODSP

($1,850) Tax Write Offs ($ 174) LTD $ 193 City Share RiNC Projects $ 120 Other Transfers

- $76 Recreation Services

(internal expense related to Colts revenue)

-$44 Social Housing (TAP)

$ 95 Hardware/Software expense

($ 448) Decrease to Contribution to Reserves - ($232) Federal Gas Tax

-($280) EMS – MoH Contribution

- $100 Civic Complex Generator

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Outside Agencies

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Approved by theOrganization 2010 Request Budget Steering Committee 2009 Approved

Cornwall Public Library $1,740,404 $1,740,404 $1,692,794Eastern Ontario Health Unit 664,952 664,952 659,023 Raisin Region Conservation Authority 396,410 396,032 381,067 Cornwall Regional Airport 270,345 270,345 140,625 Heart of the City 30,000 30,000 30,000 St. Lawrence College 100,000 100,000 -

Cornwall Regional Art Gallery 70,000 70,000 70,000 S.D. & G. Historical Society 123,250 123,250 123,250 Heritage Cornwall 15,000 15,000 7,500 Parade of Nations 6,000 3,000 2,999 Aultsville Theatre 96,500 96,500 53,200 Seaway Senior Citizens Club #1201 30,000 30,000 30,000 Cornwall & Seaway Valley Tourism 199,269 199,269 195,362 Girl Guides of Canada 7,560 - - Cornwall Carbon Reduction Initiative 30,000 - - Cornwall & District Immigrant Services 12,500 5,000 - Total Financial Requests 3,792,190 3,743,752 3,385,820

In-Kind Requests:Cornwall and Area Volunteer Fair 425 - - Winterfest Carnival 13,000 13,000 15,000 CCH - Cornwall Hospital Triathlon 7,000 7,000 6,890

20,425 20,000 21,890

Questions ???

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