OVERALL BUDGET - Simcoe County
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OVERALL BUDGET
Table of Contents At a Glance .............................................................................. 1 Operating Cash Flow .......................................................... 28 Financial Snapshot ............................................................... 2 Reserve Balances .............................................................. 29 Overview .................................................................................. 6 Risks & Opportunities ......................................................... 33 County Profile ....................................................................... 6 Department View .................................................................... 34 County Statistics................................................................... 7 Organizational Structure ..................................................... 34 Budget Framework ............................................................... 8 Department Summaries ...................................................... 35 Key Inputs .......................................................................... 11 Operational Requests ......................................................... 47 Financial Principles & Guidelines ....................................... 13 Staffing ............................................................................... 48 Basis of Accounting and Budgeting .................................... 14 Capital Projects .................................................................. 53 County View ........................................................................... 15 Fleet Inventory by Department ........................................... 61 Assumptions ....................................................................... 15 Long Term Planning ............................................................... 64 Operating Revenues .......................................................... 16 Budgeting and the Long Term Plan .................................... 64 Operating Expenses ........................................................... 23 Long Term Financial Plan ................................................... 66 Operating Balance.............................................................. 25 Department Budgets ………...………………………………….68 Capital Financing................................................................ 26 Service Partners …………….…………………………………300 Debt Financing ................................................................... 27
At a Glance
The 2019 budget contains operating and capital expenditures In addition to including all the resources necessary to maintain
of $548M. existing services and service levels, the budget contains items
that address areas of growth and initiatives directed by
The total County operating expenditures is $429M, broken
Council to enhance service levels, increase efficiencies and
down as follows by major departments:
plan for the future. These include:
Paramedic Services - $49M
Long Term Care and Seniors Services - $57M
Continued implementation of the 10-year Affordable
Ontario Works - $73M
Housing and Homelessness Prevention Strategy,
Children & Community Services - $62M
dedicating resources for increasing rental supplements,
Social Housing - $49M
secondary suites and rental development
Transportation and Engineering - $24M
The Simcoe County Housing Corporation capital program
Solid Waste Management - $43M includes three major developments; Collingwood, Wasaga
The total County capital expenditures is $120M, broken down Beach and Township of Tay
as follows by major department: Increasing Paramedic Services resourcing to address
Paramedic Services - $24M 5.4% continued growth of medical call volume in 2018
Simcoe County Housing Corporation - $38M Continue with the development of the Barrie Simcoe
Roads Construction - $38M Emergency Services Campus in collaboration with the City
Roads Maintenance - $6M of Barrie
Solid Waste Management - $3M Continue the development of an Environmental Resource
Transit - $4M Recovery Centre (ERRC) to improve efficiencies and
increase waste diversion rates in the future
Total operating and capital revenues excluding property taxes
Continue the short term implementation plan for the
rate increase, reserve use and capital funding leaves a net
County wide inter-municipal transit service with the
requirement of $78.3M which is proposed to be funded as
addition of the second of five routes
follows:
Major road construction projects including CR90, CR21,
2% tax rate increase of $3.3M CR93 and CR4 with related road, bridge and intersection
Capital debt financing of $17.8M – internally financed components
Non-DC Reserve use of $12.5M – largely driven by Implementation of the 2017 Provincial Growth Plan,
planned Social Housing projects, Hospital Alliance including the completion of a Municipal Comprehensive
capital funding commitments and Asset Management Review in partnership with the member municipalities
Initiatives
Development Charge Reserve use of $44.7M
Final January 22, 2019 Page 1
Financial Snapshot
This table summarizes the County of Simcoe high level year over year budget comparison.
Change
Budget to Budget Comparison (000's) 2018 2019
$ %
Operating Revenues (431,701) (454,013) (22,312) 5.2
Operating Expenses 406,886 428,742 21,856 5.4
Operating Balance (24,815) (25,271) (456) 1.8
Gross Capital Requirement 102,981 119,562 16,580
Net Capital Requirement 32,709 43,115 10,406
External Debt 35,800 33,200 (2,600)
Internal Debt 136,200 166,600 30,400
Final January 22, 2019 Page 2
Administrative & Paramedic
Ontario Works Statutory Support Services Planning & Economic
$72.8 $37.0 $73.2 Development
$5.1
Children & Social
Community Housing
Services $87.6
$62.3
Transit
$7.0
Transportation &
Engineering
$68.6
Long Term Care &
Seniors Services General Municipal
$59.9 Services Solid Waste
$28.5 Management
$46.3
2019 Total County Expenditures: $548M
Final January 22, 2019 Page 3
Administrative
Ontario & Statutory Paramedic
Works Support Services
Children & $72.8 $33.6 $49.3 Planning & Economic
Community Development
Services $5.1
$62.3
Social
Housing
$49.4
Transit
$3.0 Transportation
& Engineering
$24.1
Long Term Care & Solid Waste
Seniors Services Management
General Municipal $43.3
$57.3 Services
$28.5
2019 Total Operating Expenditures: $429M
Final January 22, 2019 Page 4
Other
Transportation &
Simcoe County $3.4
Engineering
Housing Corporation
$44.5
$38.3
Long Term Care & Transit
Seniors Services $4.0
$2.6 Solid Waste
Paramedic Services Management
$23.8 $3.0
2019 Total Capital Expenditures: $120M
Final January 22, 2019 Page 5
Overview
County Profile
The County of Simcoe delivers a wide variety of programs and services to meet the needs of local residents and businesses. The
County is a dynamic community that continues to experience tremendous growth.
Consists of 16 member municipalities
Second largest County with a population of approximately 499,000
Third largest County in Ontario based upon physical size
Owns and manages 13,390 hectares of County forests
Borders on 500 kilometres of shoreline
Maintains more than 1,800 lane kilometres of County roads, 206 bridges
and structures and 57 major signalled intersections
Plays host to over nine million visitors annually
Employs more than 1,850 full and part-time people
Provides Paramedic Services responding to more than 73,000 calls in
2018
Provides Long Term Care and Seniors Services in four homes and 542
beds
Coordinating agency for 911 and Emergency Planning
Manages the provincially legislated Ontario Works program
Provides Children Services for the County
Manages and funds homelessness prevention programs
Responsible for the planning, funding, and managing of the County’s
social housing system providing 1,611 units through Simcoe County
Housing Corporation and managing 2,566 units through non-profit
organizations
Responsible for the residential waste and recycling programs,
environmental compliance and waste diversion initiative
Handles more than 9,000 inquiries per month to Customer Service
Works with the partner municipalities through Planning and Development
to guide and influence growth and development policies
Final January 22, 2019 Page 6
County Statistics Measure 2014 2015 2016 2017 2018 2019 General Economic Consumer Price Index (Ontario) % Growth* 2.4% 1.2% 2.0% 1.9% 2.2% 2.2% Non-Residential Building Construction Price Index (Toronto)* 2.4% 1.2% 3.7% 3.1% 4.0% 3.0% Infrastructure Ontario - Average yearly lending rate %* 3.6% 3.1% 3.0% 3.5% 2.5% 3.4% Electricity Average Lower Tier Price (¢ per kWh) % Growth* 7% 13% 11% -8% -15% 3% Natural Gas Average Effective Price (¢/m3) % Growth* 52% -36% -5% -10% -12% 3% Diesel Fuel ($ per litre) - Ontario Average* $1.31 $1.10 $1.02 $1.04 $1.19 $1.25 Gasoline Fuel ($ per litre) - Ontario Average* $1.27 $1.07 $1.05 $1.05 $1.20 $1.25 County Population incl. Barrie & Orillia *** 466,000 473,000 479,650 489,000 499,000 509,000 Simcoe County Housing Starts (excluding Barrie & Orillia)** 1,851 1,757 2,146 3,830 2,441 2,441 Unemployment Rate - Central Ontario* 7.8% 7.4% 6.5% 6.0% 5.5% 5.4% County Services County of Simcoe Tax Rate Increase** 2.0% 1.1% 2.0% 2.0% 1.0% 2.0% Development Charge Receipts ($M)** 12.8 19.2 23.2 33.4 23.6 25.0 Medical Call Volume** 58,061 61,080 65,874 70,073 73,852 77,914 Medical Call Volume % Growth** 5.2% 7.8% 6.4% 5.4% 5.5% LTC Case Mix Index (acuity / complexity indicator)** 99.12% 99.93% 98.08% 100.67% 108.11% 108.11% Ontario Works Monthly Average Caseload** 7,405 7,278 6,483 5,656 5,600 5,600 Social Housing Waitlist* 2,900 3,087 2,979 3,169 3,361 3,268 Child Care Provincial Funding ($M)** 22.9 27.0 30.6 35.4 39.6 45.2 Solid Waste Tonnage Collected (Curbside & Drop-Off)** 132,932 139,029 140,120 148,454 153,821 159,820 Solid Waste Direct Diversion Rate (Curbside & Drop-Off)** 58.6% 60.2% 60.8% 60.3% 60.1% 61.7% Simcoe County Transit Ridership ** - - - - 11,485 51,604 Simcoe Country Forest (acres)** 32,189 32,625 32,737 32,835 33,080 33,080 Simcoe County Museum Total Visitors** 31,209 35,992 32,865 35,591 38,000 38,500 Simcoe County Library Co-Operative Circulation** 63,989 67,782 69,124 71,848 75,544 77,840 Note: * 2018 Year to Date Measure, ** 2018 Projected Year Measure, *** Estimated population between census years of 2011 & 2016. 2% estimated growth from 2017-2019 based on Planning & EDO data Final January 22, 2019 Page 7
Budget Framework
The County is challenged with delivering core services to a Council is required to approve a balanced budget each
growing demand, enhancing programs and services while calendar year (Jan 1–Dec 31), before property taxes can be
balancing the financial burden to the taxpayers. billed. The operating budget includes annual expenditures for
staff, materials, services, debt servicing, reserve activity,
This challenge is addressed annually through budget taxation, subsidy revenue and program costs. The capital
deliberations. Council decides on the overall level of services, budget identifies approved projects and their costs.
the types of programs, the infrastructure and long-term
investments necessary to support the growing community Recurring expenditures are funded from recurring sources of
while preserving a valued lifestyle affordable to its residents. revenue. Non-recurring expenditures are funded from
reserves or purpose specific funding. During the budget
The annual budget is a strategic planning document whereby development process, Council will consider staffing,
the financial resources of the County are allocated to various operational and capital expenditures to increase efficiencies
programs and services to achieve the County of Simcoe’s and effectiveness.
priorities and reflects the needs of residents. The budget
establishes service levels, program offerings, replacement Ontario Municipalities are not permitted to budget an operating
schedules as well as capital improvements. It also determines deficit. Any operating surplus at the end of the year is
the amount of taxes to be collected from residents and allocated as per Council’s direction during the strategic plan
businesses. discussions.
Balancing the need to provide core services to an expanding Council and Management receive, on a regular basis, financial
population with the desire to pursue new opportunities status reports on spending against budget and forecast to year
presents a challenge due to limited revenue sources. County end.
staff has maximized other sources of revenues to support
Simcoe County’s history of maintaining low tax rates through a The County of Simcoe strives to provide good value for tax
strong pay for service and growth pays for growth philosophy. dollars and works to enhance value for taxes by monitoring the
Where appropriate, service fees and charges have been efficiency and effectiveness of services.
introduced or increased and services have been aligned with
the needs of the growing community.
Multi-year financial planning in addition to the annual
budgeting process ensures current and future impacts
associated with decisions are understood and identified.
Final January 22, 2019 Page 8Budget Process
The challenge of the budget process is to meet the many and The budget process covers base budget, growth and
varied needs of residents and businesses at a cost that is enhancements to service levels.
reasonable to County taxpayers.
The primary purposes of the County of Simcoe’s budget are
to: Base Budget Service Growth Enhancements
1. Set out the program of services provided by the County,
•Costs required to •Costs required to •New services or
their purpose and planned costs maintain existing maintain existing enhanced
2. Provide a method of controlling expenditures service levels levels of service service levels
•Mandatory / for the increasing •Funding to cover
3. Forecast revenues and funding to support services to the Legislative population cost of providing
communities served •Non discretionary •New initiatives these services
4. Support and facilitate achievement of long term plans and costs imposed by funded by depends on
others development property taxes
objectives charge revenues and growth in the
•Carry over
projects and assessment assessment base
growth that may lag the
•Costs from prior
•Long term timing of
year
financing expenditures
commitments
strategies
Final January 22, 2019 Page 9Budget Review
The budget review requires each department to meet with their Once the reviews are complete, the budget is presented to the
Financial Controller and prepare a budget that ensures all Committee of the Whole. The Committee of the Whole
relevant budgeting principles follow Generally Accepted provides comments and direction to staff for any adjustments.
Accounting Principles (GAAP). The Committee of the Whole refers the budget to County
Council with their recommendations for review and final
The department budget outlines the associated revenues and approval.
expenditures, net operating balance, net capital requirement
and the total department requirement.
Changes to operations, staffing complements and capital Department Submission
projects require an expenditure request form. All requests
Finance Review
must support the County’s strategic plan and each
department’s mandate. Executive Management reviews,
Executive Management Review
challenges and assesses each proposal.
Committee of the Whole
County Council
Dates Description
November 8th, 2018 Special budget meeting
January 8, 2019 Special budget meeting
January 22, 2019 Council
February 12, 2019
Council
(if needed)
Final January 22, 2019 Page 10Key Inputs
Plans, Acts and Regulations: Provincial Subsidies:
The budget reflects the strategic initiatives and investment for The County assumes that provincial subsidies will continue at
the County of Simcoe. A number of planning processes, multi- the current known and committed level as a major source of
year Master Plans and Acts, in addition to Ministry regulations, operating revenue. The costs of providing provincially
drive the development of the budget. Major elements include: mandated services are based on Ministry regulations and
guidelines and have been increased to reflect an inflation
County of Simcoe Strategic Plan factor.
Transportation Master Plan
Simcoe County Official Plan Development Charges and Reserve Funds:
Solid Waste Management Strategy
Development Charges are fees imposed on development
Long Term Financial Plan
projects to pay for increased costs arising from growth-related
Development Charge Background Study
development in the County. The rates for these fees are
Development Charge Act
developed based on the growth forecasts and needs
Ontario Planning Act
requirements within the County. Various long term plans have
Housing Services Act
been utilized to develop future rates; including the
Long Term Care Act
Transportation Master Plan and the Official Plan.
Ambulance Act
Environmental Protection Act
A requirement of the Public Sector Accounting Standards of
Ontario Provincial Standards
the Chartered Professional Accountants of Canada (CPA
Affordable Housing and Homelessness Prevention Strategy Canada) is that obligatory reserve funds must be reported as
Transit Feasibility and Implementation Study deferred revenue. This requirement restricts how these funds
may be used and under certain circumstances how these
Economic Outlook:
funds may need to be refunded. Monies received from
The economic prospects for the County of Simcoe are payment of Development Charges under the Development
expected to remain good per the Standard & Poor’s (S&P) Charge By-Law are maintained in specific reserve funds and
2017 report. The credit rating firm provided the following; interest is allocated to each of the reserves increasing their
“County of Simcoe 'AA' rating based on exceptional liquidity, balances.
very low debt burden and contingent liabilities, a strong
economy and budgetary performance with a stable outlook”.
Final January 22, 2019 Page 11Asset Management Plan:
Ontario municipalities must develop asset management plans The County has a current debt service capacity of $45 million
to accompany any request for infrastructure funding and available per year for payments relating to debt and financial
development charge background studies. The County has an obligations under provincial guidelines based on the 2016
asset management plan that outlines the state of the local Financial Information Return. This would allow additional
infrastructure including an asset inventory list identifying borrowing if needed.
various attributes of an asset such as the asset condition and
replacement cost estimates. The asset management plan The additional borrowing which the County of Simcoe could
provides desired level of service, an asset management undertake over a 5 year, 10 year, 15 year and 20 year period
strategy and a financing strategy. is illustrated below at 5% interest rate, for information
purposes only.
Debt Capacity:
A municipality may only issue new debt provided that the Period Maximum Borrowing
projected financial charges related to the outstanding debt will 20 years $558M
be within the annual debt repayment limit prescribed by the 15 years $465M
Ministry of Municipal Affairs. This limit is set at 25% of a 10 years $346M
Municipality’s own source revenues less debt charges and 5 years $194M
financial commitments.
Final January 22, 2019 Page 12Financial Principles & Guidelines
The County recognizes the need to adopt an approach to 3. User Fees
financial management that shifts the emphasis from bottom Ensure that user fees recover program operating costs
line financial concerns to service delivery with a longer term
financial planning horizon. 4. Manage capital assets to maximize long-term community
benefit
The principles in the preparation of this budget are Maintain the County’s assets in a ‘state of good repair' in
summarized into the following; accordance with the asset management plan
1. Ensure long term financial sustainability 5. Implement a capital funding plan to address the County’s
Determine on a multi-year basis the financial requirements
requirements for operating and capital needs New asset requirements
Identify any funding gap between revenues and Develop debt financing program to address the County’s
expenditures capital needs
Ensure there are sufficient revenues to meet long-term Ensure debt terms are consistent with the life of the
operating and financial requirements and balance asset
spending with revenues
Plan for the replacement of assets and maintenance of 6. Maintain reserves at appropriate levels
assets through asset management and replacement Establish reserves to provide funding for future assets
reserves
7. Prudent investment management
Maintain existing service levels
Keep tax levy impact within cost indices Invest the County’s reserves to achieve optimum return
within appropriate risk tolerances
2. Deliver services in a cost-effective and efficient manner
Undertake reviews of programs on a regular basis to
ensure services are delivered in a cost-effective and
efficient manner
Identify and implement efficiencies
Provide sustainable service levels
Final January 22, 2019 Page 13Basis of Accounting and Budgeting The County of Simcoe’s financial statements are prepared and The County also utilizes budgeting and reporting software presented in accordance with Generally Accepted Accounting which provides a central repository for the County’s budgeting Principles (GAAP) for local governments as recommended by and planning requirements. This enhances consistency in the Public Sector Accounting Board (PSAB). The County of budgeting methods, assumptions among the divisions and Simcoe follows the full accrual basis of accounting, which data integrity. recognizes revenues when they are earned and expenses when they are incurred rather than when a payment is made or received. Final January 22, 2019 Page 14
County View
The County budget is set by determining the needs of the County for the year. These needs or costs are referred to as expenditures,
which are offset by the money that comes into the municipality, known as revenue. The revenue is generated through different
streams such as provincial subsidies, service partner contributions, user fees, miscellaneous income, grants, reserves, capital
funding and the county levy.
Assumptions
Tax rate increase of 2.0% as directed by Council Salaries & Benefits are based on current contracts and non-
Provision of 1% set aside for strategic land purchases union compensation plan
Provision of 1% set aside for Economic Development Municipal Property Assessment Corporate increase of 2%
Based on historical trends, the property asset/additions Simcoe Muskoka District Health Unit(SMDHU) increase of 2%
growth assumption has been estimated at 2.5% Provision of $500K for Hospice capital funding
Consumer Price Index 2.2% Hospital Alliance grant of $3M
Supplementary Taxes are estimated at $3.0M Post-secondary funding of $1.5M
Non Residential Building Construction Price Index 3% Cost sharing with the Cities of Barrie and Orillia are estimated
Utilities projected increases (Natural Gas 3%, based on the shared services agreement
Water 3.5% and Hydro 3%) Staffing requirement for FTE’s have been projected to meet
Gasoline and diesel fuel prices increase from $1.20 to $1.25 departmental objectives
per litre Paramedic medical call volume increase of 5.5%
Age Friendly grant $500K Ontario Works monthly average caseload of 5,600
Lake Simcoe Regional Airport (LSRA) requirement increases
by 2%
Final January 22, 2019 Page 15Operating Revenues
The items below represent major sources of revenue to User Fees are utilized by the County to fund services
fund the operating expenditures. that are user based versus community as a whole. This
reduces the need for property tax by requiring the users
Subsidies are one time or ongoing funding from of the service to pay for the cost of those services.
provincial or federal programs.
Miscellaneous Income are revenue sources that the
Service Partners refers to revenues received for the County has little control over in terms of the amount,
delivery of services to the cites of Barrie and Orillia which timing or conditions associated with receiving them.
include Ontario Works, Children and Community Examples are funding from senior levels of government
Services, Social Housing, Paramedic Services and Long for a specific purpose, an operating surplus or gain from
Term Care. The County and the Cities are parties to a the sale of an asset and recycled materials revenue.
Municipal Services Management Agreement that outlines
the management governance, performance, Transfer from Reserves represent funds that have been
communications, and cost sharing structure for these previously set aside by Council to fund asset
services. The current agreement covers a period of five management plans, both the growth and non-growth
years. components of projects, and other specific initiatives.
Property taxes (County Levy) are calculated by
multiplying the property assessment values established
by Municipal Property Assessment Corporation (MPAC)
by the tax rate set for each property class. The taxes
levied for municipal purposes are used to fund the
County’s financial condition, investment in infrastructure,
on-going expenditures and liabilities incurred.
Final January 22, 2019 Page 16Operating Revenues This table highlights the change in operating revenues between the 2019 and 2018 budget. Operating Revenues Summary ($000's) 2018 2019 $ +/(-) 2019 vs 2018 Total Operating Revenues (431,701) (454,013) (22,312) Subsidies (195,372) (208,323) (12,951) Service Partners * (23,532) (23,917) (385) County Levy ** (159,551) (169,674) (10,123) User Fees (35,132) (36,365) (1,232) Miscellaneous Income (7,344) (5,654) 1,690 Transfer from Reserve *** (10,768) (10,079) 689 * Service Partners detail page 300 **County Levy detail page 19 *** Reserve Use detail page 21 Final January 22, 2019 Page 17
Property Taxation
Each year County Council is responsible for making tax These types of assessment changes will not affect
policy decisions that are sensitive to local needs and municipal revenue because tax rates must be restated.
priorities. Those decisions define the local property tax They will however affect the overall distribution of the tax
landscape. burden among taxpayers as rates of valuation change
vary by class.
Assessment valuations reflect changes in real estate
market conditions, which are driven by economic factors, The County collects its taxes by providing a tax
demographics etc. Generally, valuation reflects the requisition to member municipalities who levy separate
impact of reassessment, which involves updating the tax rates for County purposes. The County sets tax
current assessed value of properties to reflect a new ratios and tax rates to raise the levy amount from its
more recent effective valuation date. member municipalities.
The impact on the tax rate and the taxes paid by an Property taxes are charged to property owners according
individual property owner will vary depending on the to the assessed value of each property. The value of the
property’s new assessment applied by Municipal property assessment is determined by the Municipal
Property Assessment Corporation (MPAC) relative to the Property Assessment Corporation (MPAC). MPAC is an
average assessment and the four year phase-in independent body established by the Ontario Property
provisions. Assessment Corporation Act.
Property taxes are collected and administered by the
local area municipality in which the property is located.
The local municipality distributes the County its share of
property tax revenue also known as the County levy.
Final January 22, 2019 Page 18County Levy Detail
The County Levy reconciliation and description of each component is outlined in the following table.
2019 Levy Budget
($000's)
Component Description
2018 Levy Budget 157,060 The County levy estimate included in the 2018 budget.
Adjustments made to reflect the actual 2018 year end property changes
2018 Property Asset/Additions
2,229 (asset/additions and deletions).
Adjustment
This amount does not increase the taxes for the current tax payer.
2018 Levy adjusted for 2018 This reconciles the 2018 budget to the 2018 tax ratios and tax rate by-law
159,289
assets/additions levy estimate.
Estimated at 2.5% growth, the property asset/additions is based on a 5
2019 Property Asset/Additions Estimate 4,000 year historical trend of assessment revenue growth provided by MPAC.
This amount does not increase the taxes for the current tax payer.
A property tax rate increase of 2% as directed by Council.
2019 Property Tax Increase 3,266 This amount impacts tax payers. Approximately $5.70 per $100,000 of
assessment.
2019 Annual Levy Base 166,555 Used for the 2019 tax rate by-law levy estimate.
Supplementary taxes are non-recurring and are the result of growth related
assessments/taxes received within the calendar year. Supplementary
2019 Supplementary Taxes 3,000
taxes are estimated based on a 5 year historical trend.
This amount does not increase the taxes for the current tax payer.
Heads & Beds: these are payments in lieu of taxes for provincial institutions
such as public hospitals, universities, community colleges, and correctional
2019 Heads & Beds and Linear Acreage 119 facilities.
Linear acreage: this property taxation is for certain Railway, Power & Utility
Lands as defined by the Municipal act.
2019 County Levy Budget 169,674 2019 Levy budget amount.
Final January 22, 2019 Page 19The following table illustrates the County’s levy of $169.7M This table illustrates the tax impact per $100,000 of a
broken down by the Major Services. property’s assessed value with a property tax rate increase of
2.0% for residents in the community.
Your Tax Dollars
Per $100,000
% of Tax Residential
Levy Support Area ($000's)
Dollars Assessment County Tax Rate Increase
Value
Paramedic Services 16.7% 28,355 $48.58
Long Term Care and Seniors Services 5.2% 8,767 $15.02 Percentage increase 2.0%
Ontario Works 2.2% 3,665 $6.28
Total tax increase $3.3M
Children & Community Services 2.5% 4,206 $7.21
Social Housing 14.0% 23,816 $40.81 Tax increase per $100,000 of assessment $5.70
Transportation & Engineering 10.5% 17,750 $30.41
Solid Waste Management 21.1% 35,814 $61.36
Planning, Economic Development 3.4% 5,840 $10.01
Transit 3.7% 6,267 $10.74
Administrative & Statutory Support
(CAO, Clerk Dept, Service Simcoe, 8.3% 14,155 $24.25
Corporate Performance)
General Municipal Services
(SMDHU, MPAC, LSRA, Age Friendly 12.4% 21,038 $36.05
grant, hospital & educational support)
Total Taxes based on Services 100.0% 169,674 $290.72
* All numbers are rounded
Final January 22, 2019 Page 20Reserve Use
The below table highlights the usage of Reserves for both operating and capital projects.
Transfer From Reserves breakdown (Operating and Capital)
($000's)
Transfer Transfer
From From Total
Reserves Detail breakdown
Reserves Reserves Transfers
Operating Capital
Museum gallery exhibit change to the People’s
Museum Contingency 100 0 100
Gallery Exhibit
Forestry 0 91 91 Replacement of two pick-up trucks
Long Term Care Asset Management Plan
operating requirements - $569K;
Homes Contingency 569 767 1,336
Long Term Care Asset Management Plan capital
requirements - $767K
Social Services 280 0 280 Building Hope 2019 payment
Replacement of the Chemical, Biological,
General Contingency 22 0 22
Radiological & Nuclear (CBRN) suits
Administration Building Administration Centre Asset Management Plan
0 215 215
Contingency capital requirements
County Share of Non Profit provider capital loans -
operating $1.4M;
County share of Asset Management Plan
Social Housing 2,092 2,877 4,969
requirements - operating $647K, capital $100K;
New Developments - Wasaga Beach $532K, Tay
$2.3M
Final January 22, 2019 Page 21Transfer From Reserves breakdown (Operating and Capital)
($000's)
Transfer Transfer
From From Total
Reserves Detail breakdown
Reserves Reserves Transfers
Operating Capital
Elmvale Paramedic Station $644K;
Paramedic Contingency 7 1,787 1,794 Barrie Simcoe Emergency Services Campus
$1.14M
Economic Development &
100 0 100 In-Market Support Special Project
Planning
Hospital Reserve 3,000 0 3,000 Annual payment for hospitals infrastructure
Various maintenance and building projects for
Sunset Village - County 58 60 118
Sunset Village
Other Small Transfers 105 193 298 Miscellaneous
Environmental Resource Recovery Center –
Waste Management
0 155 155 Organics Processing Facility component for
Contingency
technical studies
Total Transfer from Non-DC 6,333 6,145 12,478
Reserve/Reserve Funds
Planning Studies (MCR and Official Plan) - $146K;
Operating DC - for Hwy 400 and 5th line
Development Charges 3,746 40,971 44,717 Bradford/West Gwillimbury intersection - $3.6M;
Capital DC as per Capital Expenditure Summary -
$41M
Total Transfer From Reserves 10,079 47,116 57,195
Final January 22, 2019 Page 22Operating Expenses
The following are the major expense categories used to Facilities costs refer to the costs associated to maintain and
outline costs within the County. run the County owned facilities, including building
maintenance, utilities and property taxes.
Client Benefits are expenses paid out to clients or service
providers for services that are available and benefit the Cost of Service Delivery cover the expenditures associated
population of the County. These include Ontario Works directly with providing services to the residents of the
benefits, child care fee subsidy and housing client benefits. County. These include tipping fees, waste contract and
export, food and care supplies, road sand and salt, vehicle
Salaries and Benefits are the costs related to County of expenses, transit costs, grants and health unit assessment.
Simcoe employees including wages, health benefits,
overtime, group insurance, short term disability and OMERS Transfer to Reserves are critical to the County’s long term
costs. financial plan. They represent funds that are being set aside
to fund future asset management plan requirements,
Administration costs are the County’s non-salary operating projects or initiatives. Reserves are used to provide stability
expenditures such as MPAC cost, liability insurance, by smoothing the effect of variable or unanticipated
professional services, rent, advertising, office expenses, expenditures. Transfer purposes include hospital alliance,
training and development. strategic land purchases, economic development fund, asset
management and future initiatives.
Final January 22, 2019 Page 23Operating Expenses This table highlights the change in operating expenses between the 2019 and 2018 budget. Operating Expenses Summary ($000's) 2018 2019 $ +/(-) 2019 vs 2018 Total Operating Expenses 406,886 428,742 21,856 Client Benefit 136,699 144,518 7,819 Salaries and Benefits * 140,158 150,067 9,909 Administration 20,251 21,107 855 Facilities 26,294 26,184 (110) Cost of Service Delivery 67,326 69,618 2,292 Transfer to Reserve 16,159 17,249 1,090 *Staffing detail page 48 Final January 22, 2019 Page 24
Operating Balance
The operating balance is the amount left over after expenses are deducted from revenues.
This table outlines the County’s total current year operating balance budget as well the historical trend. The net operating balance is
used to partially fund the capital requirements for the current year.
2016 2017 2018 2019 Change
($000's) Actual Actual Budget Budget $ %
Operating Revenues
Subsidies (167,604) (174,638) (195,372) (208,323) (12,951) 6.6
Service Partners (22,912) (22,620) (23,532) (23,917) (385) 1.6
County Levy (149,998) (157,862) (159,551) (169,674) (10,123) 6.3
User Fees (33,939) (35,384) (35,132) (36,365) (1,232) 3.5
Miscellaneous Income (10,548) (17,669) (7,344) (5,654) 1,690 (23.0)
Transfer from Reserve (8,209) (10,708) (10,768) (10,079) 689 (6.4)
Total Revenues (393,210) (418,880) (431,701) (454,013) (22,312) 5.2
Operating Expenses
Client Benefit 117,159 117,892 136,699 144,518 7,819 5.7
Salaries 128,919 135,061 140,158 150,067 9,909 7.1
Administration 23,520 20,718 20,251 21,107 855 4.2
Facilities 23,166 23,537 26,294 26,184 (110) (0.4)
Cost of Service Delivery 57,218 64,414 67,326 69,618 2,292 3.4
Transfer to Reserve 23,404 32,349 16,159 17,249 1,090 6.7
Total Expenses 373,386 393,972 406,886 428,742 21,856 5.4
Total Operating Balance (19,824) (24,908) (24,815) (25,271) (456) 1.8
Final January 22, 2019 Page 25Capital Financing
The current capital budget includes total project 2019 Capital Financing
expenditures of $120M.
($000's)
Development Charges are collected to recover the growth-
related costs on capital projects that are associated with Capital Expenditures 119,562
residential and non-residential development. As the majority
of the County’s capital expenditures are growth related, Revenue: Gas Tax 4,906
development charges are a major source of financing for the Subsidies 6,164
capital plan. Other Funding 1,727
Service Partners 16,534
The capital is funded by the operating balance, reserves, Reserves 47,116
development charge reserves, municipal partners and senior
levels of government. Any shortfall is financed through Total Capital Revenues 76,447
various debt instruments. In 2019, the financing requirement
is $17.8M as outlined in the table. Operating Balance available for Capital 25,271
2019 Capital Financing Requirement 17,843
Final January 22, 2019 Page 26Debt Financing
Section 401 of the Municipal Act grants Council the authority The following key objectives were set out:
to incur a debt when deemed in the best interest of the Adhere to statutory requirements
taxpayers to finance its own capital expenditures. Ensure long term financial flexibility
Limit financial risk exposure
“Best Interest” for the County of Simcoe will be consistent with Minimize long term cost of financing
the County’s strategic directions which includes fiscal Match term of financing to the useful life of the related
management that contains both financial principles and asset
policies.
The total principal and interest payments in 2019 are $4.6M
This philosophy is also reflected in the County of Simcoe’s with an estimated 2019 year end debt balance of $199.8M.
capital financing and debt policy.
Debt Financing
$M
Forecasted Principal Interest Estimated
Debt Type 2019 Debt
Year end 2018 Payments Payments Year End 2019
Short Term Debt 20.0 0.5 20.0
New Short Term Debt 0.0
Roads Debenture 2.2 1.1 0.1 1.1
Simcoe County Housing Corporation 10.0 1.4 0.4 8.6
Landfill Debt Payment to Municipalities 3.6 0.1 3.5
Unfinanced Development Charges 49.1 19.7 68.8
Unfinanced Capital 80.9 1.0 17.8 97.7
Total 165.8 3.6 1.0 37.6 199.8
Final January 22, 2019 Page 27Operating Cash Flow
The following table shows the estimated operational cash flow for 2019. Other funds are held separately and may be used for cash
management and emergency cash purposes.
2019 Budget
Operating Cash Flow ($M)
Cash Balance Beginning of Year 58.1
Sources From Operations
Operating Revenues 443.9
Capital Revenues 29.3
Development Charge receipts 25.0
Less:
Uses For Operations
Operating Expenses 411.5
Capital Expenses 109.3
Net Cash From Operations (22.5)
Finance Sources (Uses)
Service Partners - MFC Financing (12.8)
Provincial Funding recovery 1.1
Cash - End of Year 23.9
Final January 22, 2019 Page 28Reserve Balances
Operating Reserves
Under the Municipal Act, Council has the authority to establish reserves as required. Reserves and Reserve Funds can be formed to
meet specific objectives.
Projected Reserves ($000's)
Transfer Transfer Transfer Transfer
2018 2019 Year
to from to from
Operating Reserves Funds End Budget
Reserves Reserves Reserves Reserves
Available Balance
Operating Operating Capital Capital
Archives Contingency 149 2 0 0 0 151
Museum Contingency 166 39 100 0 0 105
Forestry 5,691 470 0 0 91 6,071
Homes Contingency 1,612 1,494 569 1,000 767 2,770
General Contingency 3,443 3,314 22 0 0 6,735
Social Services 6,627 0 280 0 0 6,346
Simcoe Village 164 151 7 0 13 296
Roads Contingency 5,113 0 0 0 0 5,113
Paramedic Contingency 2,914 248 7 0 1,787 1,368
Administration Building Contingency 437 150 0 0 215 372
Tourism Simcoe 256 0 0 0 0 256
Social Housing 20,828 2,878 2,092 1,600 2,877 20,338
Waste Management Contingency 15,775 3,700 0 0 155 19,320
Economic Development & Planning 6,022 1,661 100 0 0 7,584
Total 69,196 14,108 3,177 2,600 5,904 76,823
Final January 22, 2019 Page 29Reserve Funds
Projected Reserves ($000's)
Transfer Transfer Transfer Transfer
2018 2019 Year
to from to from
Reserve Funds Funds End Budget
Reserves Reserves Reserves Reserves
Available Balance
Operating Operating Capital Capital
Georgian Manor Donations 52 25 35 0 0 42
Georgian Village Suites - Residents 257 46 (0) 0 0 303
Georgian Village Homes - Residents 41 15 4 0 0 52
Simcoe Manor Donations 85 5 30 0 0 60
Simcoe Village Donations 6 0 0 0 0 6
Sunset Manor Donations 50 5 15 0 0 40
Sunset Village - Residents 326 38 (0) 0 0 364
Sunset Village - County 297 0 58 0 60 179
Trillium Manor Donations 45 5 15 0 0 35
Alcona Development 7 0 0 0 0 7
Hospital Reserve 7,457 3,000 3,000 0 0 7,457
C. Matthews Museum Reserve Fund 4,465 0 0 0 150 4,315
Total Reserves Funds 13,088 3,138 3,156 0 210 12,860
Final January 22, 2019 Page 30Trust Funds
Projected Reserves ($000's)
Transfer Transfer
Transfer to Transfer to 2019 Year
2018 Funds from from
Trust Funds Reserves Reserves End Budget
Available Reserves Reserves
Operating Capital Balance
Operating Capital
Estate of S.O. Bain 102 0 0 0 8 95
Estate of H.P. Brown 361 0 0 0 23 338
Ross Channen Memorial Fund 3 0 0 0 0 3
Honour Guard 63 3 0 0 0 65
Total Trust Funds 529 3 0 0 30 501
Grand Total 82,813 17,249 6,333 2,600 6,145 90,184
Final January 22, 2019 Page 31Development Charge Reserves
Development Charges are collected to recover the growth- The Development Charge Act, 1997 and other legislation
related costs associated with residential and non-residential require that municipalities maintain specific reserves. Such
development of capital projects. reserves include Development Charge Deferred Revenue.
Development Charge reserves have been advanced resulting
A background study for the current Development Charge by- in development charge unfinanced capital. In 2019
law occurred early in 2016. Process reviews were conducted unfinanced development charges are to increase by $20M,
to ensure stakeholders understand the methods and resulting in a year end unfinanced development charge
assumptions used in determining the development charge balance of $68M.
rates. This process helps to ensure stakeholders understand
the infrastructure needs, associated costs, methods and 2019 Development Charge Balance
address any concerns. The budget includes estimates based ($000's)
on the County of Simcoe’s Development Charge By-Law
effective January 1, 2017. Development Charge Receipts 25,002
Development Charge Expenditures 44,717
Development Charge Balance ($19,716)
Transfer to Transfer from Transfer from
Development Charge Reserves 2018 Funds 2019 Year End
Reserves Reserves Reserves
($000's) Available Balance
Operating Operating Capital
Paramedic Services (2,565) 543 0 4,679 (6,701)
Long Term Care (5,116) 1,499 0 0 (3,617)
Social Housing (7,724) 2,883 0 12,774 (17,615)
Public Works 48 245 0 0 293
General Government 73 149 146 0 75
Roads and Related (34,334) 19,059 3,600 23,451 (42,326)
Solid Waste Management 1,303 624 0 68 1,859
Total Development Charge Reserves (48,315) 25,002 3,746 40,971 (68,031)
Final January 22, 2019 Page 32Risks & Opportunities
The following risks and opportunities could impact the ability to achieve the budget as outlined.
Risks Opportunities
In year non-profit housing capital loan requests Municipal partnerships to achieve economies of scale
Future collective agreements, interest arbitration in common service areas
settlements and pay equity settlements Taking advantage of additional borrowing opportunities
Delays in regulatory approval and their impact on at historical low interest rates
construction projects Potential rebates received
Delays in utility relocations and their impact on Realize market appreciation on County assets
construction projects (i.e. housing, lands)
Unplanned initiatives requiring funding Engage federal government to further support
Unforeseen legal/legislative challenges Affordable Housing Strategies
Human Resources – lost time management Federal funding for transit
Current funding model stability Lake Simcoe Regional Airport (LSRA)
The Waste Free Ontario Act – timing of regulations and Long Term Care (LTC) capital funding
transition of blue box program plan
Local municipal service challenges as it relates to
planning regulations
Provincial funding for Transit
Innisfil Heights employment infrastructure funding
Construction cost impacts from trade agreements and
tariffs
Uncertainty in the provincial legislation related to
growth plan
South Western Integrated Fibre Technology (SWIFT)
needs
Final January 22, 2019 Page 33Department View Organizational Structure The County of Simcoe is organized into six major areas: (Warden, CAO, Clerk and Archives), (Service Simcoe), (Corporate Performance), (Health & Emergency Services), (Social & Community Services) and (Engineering, Planning & Environment). Each area includes departments covering specific services. Final January 22, 2019 Page 34
Department Summaries
Warden, CAO, Clerk and Archives
The area consists of the Warden & Council, CAO, Clerk and Archives departments.
Warden & Council captures all activities of Council as well as fundraising activities with net proceeds from these events being paid
out to various community causes. The CAO area is responsible for implementing Council’s decisions and strategic directions,
providing leadership and advice on policies, programs and services and to ensuring compliance with the Municipal Act. The primary
role of the County Clerk is to perform the statutory duties assigned to the position by provincial legislation and County Council, as
well as oversee a broad range of responsibilities related to the function of County Council. The Archives department preserves and
promotes Simcoe County's cultural and visible heritage as well as provides efficient permanent records management services to the
departments of the County of Simcoe, the member municipalities and the City of Barrie.
2016 2017 2018 2018 2019 2019 vs 2018
Department ($000's) Actual Actual Forecast Budget Budget Change
Revenues (235) (187) (193) (210) (188) 22
Warden, CAO, Clerk and
Archives Expenses 2,953 2,939 3,388 3,418 3,566 148
Operating Balance 2,718 2,752 3,196 3,208 3,378 171
The 2019 budget includes salary and benefit increases for existing staff as well as an additional Archivist. Also included is an
increase in expenses to cover additional per diems for orientation training for the new Council.
Service Simcoe
In 2017, County Council endorsed the new Service Simcoe model, which will redefine and innovate how the County delivers
functions such as customer service, communications, marketing, cultural services and public education and engagement. The
Service Simcoe model is based on evaluation of enhanced customer/public service models in the government marketplace, such as
Service Ontario and Service Canada. This will continue to evolve to meet the current and future needs of the County with the goal of
enhancing customer service and customer touch points, while placing greater emphasis on public engagement, communication and
both corporate and regional marketing efforts.
Final January 22, 2019 Page 35Service Simcoe also brings together and centralizes departments and services that have direct contact with the public. The previous
structure saw many marketing, communications and public education functions performed within individual departments. The new
model brings together Communications/Marketing, Public Engagement (Customer Service), Simcoe County Tourism, the Simcoe
County Museum and the Library Co-operative into one Service Simcoe branch. The centralization of these departments, services
and functions provides efficiencies, synergies, and consistency to public-centric service offerings and helps to enhance operations to
meet growing needs from internal and external clients.
The Service Simcoe restructuring aligns with the County’s long term objectives, provides efficiencies and synergies, and will allow
other initiatives such as public engagement functions to adapt to growth and demand requirements, ultimately positioning the County
to easily adopt 3-1-1 when required.
2016 2017 2018 2018 2019 2019 vs 2018
Department ($000's) Actual Actual Forecast Budget Budget Change
Revenues (778) (5,049) (529) (524) (589) (65)
Service Simcoe Expenses 5,831 10,744 6,396 6,416 6,990 574
Operating Balance 5,053 5,695 5,867 5,893 6,401 509
The branches of Service Simcoe include:
Communications:
Provides full-service communications, social media, public relations, issues management, digital and traditional
advertising, events, professional writing, graphic design and content generation services
Public Engagement (Customer Service):
Provides residents of Simcoe County with a central point of contact to access County services and programs
Tourism:
Promotes Simcoe County as a first class tourist destination by further developing the tourism industry, experience
programs and community partnerships and also produces a wide selection of guide books, maps and publications as well
as providing provincial, national and international distribution and placement of local tourism materials
Simcoe County Museum:
Welcomes 35,000 visitors each year and offers a range of programs and activities that highlight the stories of the people
and events that shaped the County
Final January 22, 2019 Page 36Library Co-Operative:
Supplements and enhances the library services provided by its member municipalities to the residents of the County of
Simcoe and is a developing contact for community engagement
Financial trending has been provided using past estimates of the combined components. The focus within the 2019 budget is to
complete the integration of the department as planned including the addition of two staff positions and to begin establishing the
Service Simcoe model for County residents.
Corporate Performance
The Corporate Performance division consists of the support functions: Finance, Human Resources, Information Technology, Legal
and Procurement, Fleet & Property. These areas are responsible for the overall administration and support to the operating divisions
of the County.
2016 2017 2018 2018 2019 2019 vs 2018
Department ($000's) Actual Actual Forecast Budget Budget Change
Revenues (343) (440) (465) (450) (456) (6)
Corporate Performance Expenses 17,568 18,528 19,489 19,229 20,784 1,555
Operating Balance 17,226 18,087 19,024 18,779 20,328 1,549
Corporate Performance continues to focus on operational efficiencies including LEAN implementation to avoid or reduce expense
increases as service and growth pressures continue. One area of unavoidable pressure in this year’s budget is in the IT department
related to ensuring our software and systems are up to date and secure. Cyber security is a growing concern and additional
proactive steps will be taken this year. In addition, other department initiatives include continued HR systems automation, growth of
in-house fleet capacity, IT services for member municipalities and resourcing for the new asset management regulation.
General Municipal Services
The General Municipal Services department is responsible for managing corporate functions within the County placing emphasis on
responsible investment and debt management, assessment base management and property taxation. Funding and grants to various
community stakeholders such as hospitals and educational institutions are administered through General Municipal Services.
Final January 22, 2019 Page 372016 2017 2018 2018 2019 2019 vs 2018
Department ($000's) Actual Actual Forecast Budget Budget Change
Revenues (159,748) (172,296) (171,121) (166,902) (177,319) (10,417)
General Municipal
Services Expenses 31,955 38,381 31,274 27,850 28,491 641
Operating Balance (127,793) (133,915) (139,847) (139,052) (148,828) (9,777)
The General Municipal budget in 2019 includes 2% increase for MPAC and payments to Simcoe Muskoka District Health Unit. Other
major contributions include: Hwy 400 and 5th Line Bradford West Gwillimbury, South Western Integrated Fibre Technology (SWIFT),
Georgian College and Lakehead University, Age Friendly Grants, Hospice, Lake Simcoe Regional Airport (LSRA), and Bursaries.
Health and Emergency Services
Paramedic Services
Paramedic Services provide land ambulance services at a Primary Care Paramedic (PCP) and Advanced Care Paramedic (ACP)
level of service with legislated response time requirements. They also offer training programs, public education Public Access
Defibrillator programs and Community Paramedicine services.
2016 2017 2018 2018 2019 2019 vs 2018
Department ($000's) Actual Actual Forecast Budget Budget Change
Revenues (29,320) (32,153) (33,484) (33,151) (34,473) (1,322)
Paramedic Services Expenses 41,128 45,872 46,910 46,917 49,313 2,396
Operating Balance 11,808 13,719 13,426 13,766 14,840 1,074
Paramedic Services continues to provide timely and advanced quality service while responding to an estimated 5.5% (4,062)
increase in emergency call volumes over 2018. Funding from the Ministry of Health is expected to increase based on the Ministry
template and historical trends resulting in the Ministry funding 49.3% of the 2019 qualifying expenses. In order to maintain response
times and meet operational need, seven new Paramedic staff are required in addition to the necessary equipment and facilities to
ensure appropriate staffing levels to respond to the increasing volume and complexity of calls.
Final January 22, 2019 Page 38Emergency Management
Emergency Management is responsible for the County of Simcoe’s Emergency Response Plan, public and municipal emergency
preparedness education and the administrator of the 9-1-1 regional system.
2016 2017 2018 2018 2019 2019 vs 2018
Department ($000's) Actual Actual Forecast Budget Budget Change
Revenues (247) (171) (133) (133) (155) (22)
Emergency Management Expenses 558 509 470 467 588 121
Operating Balance 311 338 337 334 433 99
Emergency Management public and municipal training programs have risen over the past 10 years. In order to meet the increasing
demand for training support, a new public education four month intern position is being recommended to supplement existing
resources. With the complexity of emergencies involving chemicals and crossing into the health sector, such as the opioid crisis,
staff hours from the Quality, Performance & Development area have been reallocated to provide assistance in the Emergency
Management department. Costs associated with current and future operating and capital equipment requirements, including
chemical, biological, radiological and nuclear equipment and emergency portable generators have also been included. Transfers to
reserves will offset replacement costs in future years.
Long Term Care and Seniors Services
The Long Term Care and Seniors Services department provides residents with effective, high quality, safe, and efficient long term
care and seniors services in home-like settings. This department manages four Long Term Care Homes and a broad range of
seniors housing and services to support over 1,000 seniors across the region.
2016 2017 2018 2018 2019 2019 vs 2018
Department ($000's) Actual Actual Forecast Budget Budget Change
Revenues (48,425) (49,838) (52,935) (50,310) (53,845) (3,535)
Long Term Care and
Expenses 51,664 53,497 57,009 53,823 57,297 3,474
Seniors Services
Operating Balance 3,238 3,659 4,074 3,513 3,452 61
Final January 22, 2019 Page 39You can also read
