Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019

 
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
Township of Leeds and the Thousand Islands
          2020 Proposed Budget

          Draft, December 5, 2019
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
Contents
2020 Proposed Operating Budget Overview .......................................................................................................................... 4
       Scenario 1 ........................................................................................................................................................................ 5
       Scenario 2 ........................................................................................................................................................................ 5
       Scenario 3 ........................................................................................................................................................................ 5
    2020 Proposed Operating Budget Summary ...................................................................................................................... 7
Background ........................................................................................................................................................................... 10
    Asset Management Legislated Requirements .................................................................................................................. 10
    What is Asset Management? ............................................................................................................................................ 11
    Current Situation............................................................................................................................................................... 13
    Next Steps ......................................................................................................................................................................... 14
       Asset Management Software........................................................................................................................................ 14
       General Ledger Structure .............................................................................................................................................. 14
       Asset Management Staffing Requirement .................................................................................................................... 15
Property Taxes ...................................................................................................................................................................... 16
    2020 Estimated Assessment ............................................................................................................................................. 17
    Outstanding Appeals ......................................................................................................................................................... 17
    Tax Rates ........................................................................................................................................................................... 18
2020 Budget Pressures ......................................................................................................................................................... 19
    Utilities .............................................................................................................................................................................. 19
    Insurance ........................................................................................................................................................................... 19
    Salaries and Benefits Budget ............................................................................................................................................ 20
    Legislated Requirements................................................................................................................................................... 21
    One Time Expenses ........................................................................................................................................................... 22
       Roads Inventory and Needs Study ................................................................................................................................ 22
       Lansdowne Modelling and Growth Study for Water and Sewer .................................................................................. 22
       Community Improvement Plan for the Township ........................................................................................................ 23
       Rockport Strategic Plan Update and Transportation Strategy ..................................................................................... 23
       Broadband Design Study ............................................................................................................................................... 23
       Sports Tourism Strategy ................................................................................................................................................ 24
       Comprehensive Waste Management Plan ................................................................................................................... 24
    Taxation and Non-Departmental ...................................................................................................................................... 26
       Revenue ........................................................................................................................................................................ 26
       Expenses........................................................................................................................................................................ 27
    Council............................................................................................................................................................................... 28

1
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
Revenue ........................................................................................................................................................................ 28
       Expenses........................................................................................................................................................................ 28
    Corporate Services ............................................................................................................................................................ 29
       Revenue ........................................................................................................................................................................ 29
       Expense ......................................................................................................................................................................... 30
       Clerk .............................................................................................................................................................................. 31
       Finance .......................................................................................................................................................................... 31
       Information Technology ................................................................................................................................................ 31
       CAO & HR ...................................................................................................................................................................... 31
    Fire .................................................................................................................................................................................... 32
       Revenue ........................................................................................................................................................................ 32
       Expense ......................................................................................................................................................................... 32
    External Agencies .............................................................................................................................................................. 34
       Revenue ........................................................................................................................................................................ 34
       Expense ......................................................................................................................................................................... 34
       Police ............................................................................................................................................................................. 34
       Cataraqui Region Conservation Authority (CRCA) ........................................................................................................ 36
       Public Library Services, submitted by the Library Board .............................................................................................. 36
    Operations ........................................................................................................................................................................ 37
       Revenue ........................................................................................................................................................................ 37
       Expense ......................................................................................................................................................................... 38
    Recreation and Community Partnerships ......................................................................................................................... 41
       Revenue ........................................................................................................................................................................ 41
       Expense ......................................................................................................................................................................... 41
    Economic Development .................................................................................................................................................... 43
       Revenue ........................................................................................................................................................................ 43
       Expense ......................................................................................................................................................................... 43
    Planning and Development ............................................................................................................................................... 44
       Revenue ........................................................................................................................................................................ 44
       Expense ......................................................................................................................................................................... 45
Capital Budget and Financial Planning .................................................................................................................................. 47
    2020 Capital Budget .......................................................................................................................................................... 48
    2021 Capital Budget .......................................................................................................................................................... 50
       Lansdowne Community Building .................................................................................................................................. 50
    2019 Budget and Carry Forward Balances ........................................................................................................................ 52

2
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
Funding ............................................................................................................................................................................. 55
       Reserve Funds ............................................................................................................................................................... 56
       Casino Revenue ............................................................................................................................................................. 59
       Summary ....................................................................................................................................................................... 62

3
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
2020 Proposed Operating Budget Overview

The 2020 municipal operating budget for Leeds and the Thousand Islands is proposed at $14.9 million,
an increase of $1,455,800 or 11% over 2019. The increase is partly due to increased costs which are
funded by transfers from reserve funds, which are NOT impacting the tax levy. The net budget results
in a levy requirement of $9,977,100. This is an increase of $1 million over the 2019 levy. There are
many factors contributing to the increase in the 2020 budget which are explained in detail throughout
this document.
Based on the levy requirement, and the 2020 assessment value, the Township portion of the tax rate
will be 0.00422624 for 2020, compared with 0.00392731 in 2019, a 7.6% increase.
There are three components to the tax rate that the Township levies on residents:

                   Township Tax Rate

                UCLG* County Tax Rate

                   Education Tax Rate

*UCLG - United Counties of Leeds Grenville.

The 2020 proposed residential tax rate results in the following breakdown:

4
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
Scenario 1
For a residential customer, assuming the County portion of the rate increases 1.5% and the
Education portion remains the same, the overall tax rate increases 3.8%
    Year   Township Portion   County Portion    Education Portion    Total Tax Rate    Increase
    2020   0.00422624         0.00376432        0.00161000           0.00960056        3.8%
    2019   0.00392731         0.00370869        0.00161000           0.00924600

Scenario 2
For a residential customer, assuming the County portion of the rate increases 1.0% and the
Education portion remains the same, the overall tax rate increases 3.6%
    Year   Township Portion   County Portion    Education Portion    Total Tax Rate    Increase
    2020   0.00422624         0.00374578        0.00161000           0.00958202        3.6%
    2019   0.00392731         0.00370869        0.00161000           0.00924600

Scenario 3
For a residential customer, assuming the County portion of the rate remains the same and the
Education portion remains the same, the overall tax rate increases 3.2%
    Year   Township Portion   County Portion    Education Portion    Total Tax Rate    Increase
    2020   0.00422624         0.00370869        0.00161000           0.00954493        3.2%
    2019   0.00392731         0.00370869        0.00161000           0.00924600

Assuming an average residential assessment of $196,000, and assuming Scenario 1, the annual property tax
increase will be:

        Average                                Township               Township
                          Property
      Assessment
                        Taxes $1,882            Portion                 Portion
        196,000                                  $828                  Increase
     (2019 192,500)      (2019 $1,780)
                                               (2019 $756)          $6 per month

5
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
Assuming an average seasonal recreation dwelling assessment of $338,000, and assuming Scenario 1, the
annual property tax increase will be:

                                                Township               Township
       Average            Property                                       Portion
     Assessment
                        Taxes $3,245             Portion                Increase
       338,000                                   $1,428
                         (2019 $3,065)                                $10.55 per
    (2019 331,500)                            (2019 $1,302)              month

Please note that these calculations are estimates only and subject to change. They are based on
assumptions. Finalized rates will become available in 2020:
    o   2020 UCLG County tax rate is not currently known.
    o   2020 Education tax rate is not currently known.
The following summarizes the 2019 Property Tax Rates for the lower tiers in the County.

Augusta, Front of Yonge and Athens have additional special area rates not included above.

6
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
In summary, here is a comparison of the 2020 proposed budget versus 2019:

    Description                                  2020            2019            Increase
    Total Gross Municipal Budget*                $14,892,800     $13,437,000     11%
    Levy Requirement                             $9,977,100      $8,761,800      14%
    Current Value Assessment (CVA)               2,364,286,800   2,280,412,700   3.7%
    Estimated Weighted CVA                       2,360,742,900   2,281,339,700   3.5%
    Township portion of tax rate                 0.00422624      0.00392731      7.6%
    Total Township tax rate (Scenario 1)         0.00960056      0.00924600      3.8%

*excludes building department which is funded separately

2020 Proposed Operating Budget Summary
The 2020 operating budget results in a levy requirement of $9,977,100, compared with $8,959,500 in
2019. There are several factors contributing to the increase when comparing year over year:
      1. $250,000 increase in the transfer to the recreation and culture reserve fund to ensure it is not
         overdrawn at the end of 2020.
      2. $125,000 contingency budget (10-113-1160-6395). New for 2020 and a common budget item in
         municipalities, this line item will provide funding for personnel related matters, and other
         unforeseen expenses that are not budgeted for elsewhere. A significant increase in insurance
         costs is expected in 2020; this budget line may be needed to assist with this.
      3. $271,000 increase in salaries and wages. Salaries have increased $159,000 with the remaining
         increase in honorariums and benefit costs. This increase will be explained more fully in the
         Salaries and Benefits Budget section.
      4. $52,500 truck maintenance (300-3300) has increased excluding the salary and benefits budget.
         There is a new budget line item for a lease which was previously budgeted in capital, but then
         moved to operating at year end by the auditors in previous years. There are also increases in
         fuel, diesel, and truck maintenance.
      5. $70,000 increase in recycling costs (10-410-4300-6315). Based on current market costs and
         trending of costs in 2019, the budget for recycling has been increased by $70,000.

7
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
6. $30,000 strategic plan (10-113-1160-6190). Included in 2020 is an amount to resource a
        strategic planning exercise for the Township.
    7. $45,000 increase in information technology costs (114-1200).
    8. $55,000 transfer from the tax stabilization reserve fund was previously budgeted in landfill as a
        revenue amount. This was presumably budgeted to balance the budget and lessen the pressure
        on the tax rate. This is not being budgeted in 2020.
    9. $43,500 increase for budgeted insurance costs. Part of this increase is likely due to assets in
        Seeley’s Bay, Ivy Lea and Rockport that weren’t previously included on the insurance policy.
        Staff are expecting that actual costs will be higher than budget in 2020 and may therefore have
        to pull from contingency or savings in other areas.
    10. $42,000 increase in economic development expenditures is due to the 2019 organizational
        restructuring. Costs associated with community outreach, event support, and communications
        are now aligned within Economic Development Community Engagement (10-820-8601), and not
        considered recreation and leisure nor public facility related (10-700).
    11. $20,000 in one-time costs at Escott Complex for preliminary work regarding the longer term
        goals of the property, pursuant to Council approval and direction.
    12. $20,000 decrease in Source Water Protection grants that were budgeted in 2019 and not
        budgeted in 2020 as the Provincial Source Water grant program is no longer available.

8
Township of Leeds and the Thousand Islands 2020 Proposed Budget - Draft, December 5, 2019
Township of Leeds and the Thousand Islands 2020 Proposed Operating Budget

                                   2020 Revenue 2019 Revenue 2020 Expense 2019 Expense      2020 Net      2019 Net   $ increase
     Department                    Budget        Budget            Budget       Budget      Expense       Expense    /decrease
 101 Taxation - Township             10,127,071     9,019,719     150,000      158,930   (9,977,071)   (8,860,789)   - 1,116,282
 103 Casino                           1,500,000     1,500,000   2,678,156    2,193,156    1,178,156       693,156          485,000
 105 Non Departmental                 1,286,000            -      332,000          -       (954,000)          -      -     954,000
Taxation and Non Departmental        12,913,071    10,519,719   3,160,156    2,352,086   (9,752,915)   (8,167,633)   - 1,585,282
 111 Council                                 -           1,000    173,900      158,414      173,900       157,414           16,486
Council                                      -           1,000    173,900      158,414      173,900       157,414           16,486
 112 Election                                -             -       17,950       17,920       17,950        17,920                30
 113 CAO, Clerk & HR                       5,700    1,647,200     776,300    1,271,504      770,600      (375,696)       1,146,296
 114 Finance & IT                       626,000       178,850     986,700      940,879      360,700       762,029    -     401,329
 115 Donations                            83,750        83,750     83,750       83,750          -             -                 -
 116 Health and Safety Committee                                    1,600        1,700        1,600         1,700    -         100
 117 Municipal Building & Garages 1233 Prince
                                           5,000
                                              St           -      198,700          -        193,700           -            193,700
 205 Emergency Preparedness                                        42,600       76,334       42,600        76,334    -      33,734
 270 Livestock                             3,000         3,700      3,800        4,150          800           450              350
 280 Fenceviewers                            100           500        500          500          400           -                400
 500 Health Services                                               36,000       36,500       36,000        36,500    -         500
 510 Cemeteries                              -             -        8,450        8,086        8,450         8,086              364
 830 Tile Drainage                        83,000        83,760     83,000       83,760          -             -                 -
Corporate Services                      806,550     1,997,760   2,239,350    2,525,083    1,432,800       527,323          905,477
 200 Fire                                 62,500        81,600    881,250      870,047      818,750       788,447           30,303
 201 Fire Station #3                                               29,425          -         29,425           -             29,425
 202 Fire Station #2                                               29,425          -         29,425           -             29,425
 203 Fire Training                        55,200        58,000    152,600      151,220       97,400        93,220            4,180
 204 Fire Station #4                                               29,425          -         29,425           -             29,425
Fire                                    117,700       139,600   1,122,125    1,021,267    1,004,425       881,667          122,758
 210 Police                               10,000         7,923  1,858,500    1,837,266    1,848,500     1,829,343           19,157
 420 CRCA                                                         158,300      157,200      158,300       157,200            1,100
 730 Library Services                     39,600        40,240    490,500      511,835      450,900       471,595    -      20,695
External Agencies                         49,600        48,163  2,507,300    2,506,301    2,457,700     2,458,138    -         438
 300 Roads                                60,500        10,500  2,586,150    2,338,521    2,525,650     2,328,021          197,629
 310 Parks                                34,100        31,750    256,300      234,991      222,200       203,241           18,959
 400 Garbage Collection                   30,000        30,000     30,000       30,000          -             -                 -
 410 Landfill Sites                     450,200       406,410   1,023,500      765,162      573,300       358,752          214,548
 415 Source Water Protection                 -          20,000     25,000       30,000       25,000        10,000           15,000
 840 Municipal Drain                      38,000           -      100,000       16,000       62,000        16,000           46,000
Operations                              612,800       498,660   4,020,950    3,414,674    3,408,150     2,916,014          492,136
 700 Recreation & Culture                 84,250        87,250    621,370      715,128      537,120       627,878    -      90,758
Recreation & Comm. Partnerships           84,250        87,250    621,370      715,128      537,120       627,878    -      90,758
 820 Economic Development                 93,000        89,750    381,950      293,851      288,950       204,101           84,849
Economic Development                      93,000        89,750    381,950      293,851      288,950       204,101           84,849
 220 By-law                                1,700         3,200    146,020      111,462      144,320       108,262           36,058
 260 Dogs                                  3,700         3,900      3,700        3,450          -            (450)             450
 800 Planning                           190,450         23,000    411,500      231,853      221,050       208,853           12,197
 810 Committee of Adjustment              20,000        25,000     75,750       80,245       55,750        55,245              505
 710 Historical Committee                    -             -       28,750       23,188       28,750        23,188            5,562
Planning & Development                  215,850         55,100    665,720      450,198      449,870       395,098           54,772
Total Municipal Fund                 14,892,821    13,437,002  14,892,821   13,437,002          -             -

    230 Building                     385,000       282,426      385,000       282,426           -             -

9
Background

The Township of Leeds and the Thousand Islands has been in a state of transition over the last few
years due in part to turnover in staff at the senior management level prior to February 2019. During
2019, considerable progress was made to stabilize the organization, realign staff and address gaps in
service delivery. However, many operational activities have been maintained at a minimum level. Staff
have developed the 2020 operating budget to include the necessary resources to move the Township
forward in meeting expectations of Council and residents, as well as legislated requirements.

Asset Management Legislated Requirements
One of the most significant legislated requirements is the new asset management regulation. The
Infrastructure of Jobs and Prosperity Act, 2015, includes Ontario Regulation 588/17, Asset
Management Planning for Municipal Infrastructure which provides legislated requirements for asset
management planning. The requirements include:
        Every municipality shall prepare a strategic asset management policy by July 1, 2019 and shall
         review and update if necessary, at least every five years.
        Every municipality shall prepare an asset management plan in respect of its core infrastructure
         (water, wastewater, stormwater, road, bridge or culvert) by July 1, 2021.
        Every municipality shall prepare an asset management plan in respect of all its assets by July
         1, 2023 (need to include fire, recreation, facilities and all other assets).
Asset Management Plans (core assets 2021, all assets 2023)
     1. Current levels of service defined;
     2. Current performance of each asset category;
     3. Detailed asset inventory including:
           a. replacement costs
           b. average useful life
           c. condition
           d. approach to assessing the condition
     4. Estimated cost and life cycle activities to maintain current levels of service and documented
        associated risks;
     5. Impacts of growth on current levels of service;
By 2024, the Township’s asset management plan will require more comprehensive levels of service
information and management strategies including ten year plans. Every municipal Council shall review
its asset management progress annually beginning in 2025.

10
What is Asset Management?

      Asset Management is the optimal lifecycle management of physical assets to
                 sustainably achieve the stated business objectives.
Asset management is the coordinated activity of an organization to realize value from its assets. This
requires an integrated approach to gathering data, managing work flow through proper systems and
processes, optimizing the lifecycle cost of assets, and aligning all levels of the organization to meet
levels of service as set through strategic plans and other organizational goals.
While legislation outlines the requirements for Asset Management, the effective integration of gathering
meaningful operational and capital data by asset facilitates the effective and efficient operation of the
Township. The asset management plan with integrated work management processes, financial
planning and other functionalities will allow staff and Council to make evidence-based decision making
based on data. The future decisions related to budget and other operational issues will be based on a
risk-based approach to managing assets, which provide municipal services. In other words, this work
needs to be done because of legislation, but it also results in improving and streamlining business and
decision-making processes to ensure the efficient and effective operation of the municipality.
It makes good business sense to have a comprehensive asset management program.

                                  Corporate Objectives
                                      & Strategy

                                   Asset Management
                                         Policy

                                   Asset Management
                                        Strategy

                                   Asset Management
                                       Objectives

                                   Asset Management
                                          Plan

                                     Work Execution

The effective management of assets to optimize lifecycle costs is based on an understanding of the
relationship between performance, cost and risk. Balancing these three aspects is required to provide
efficient and effective municipal services.

11
Cost
                                     Performance

                                                   Risk

Risk management is an integral part of asset management. Senior leaders in the organization will need
to determine the risk appetite for various services and categories of assets; that is the preferred level
of risk that the organization is willing to tolerate.
Council and senior management have a key role to play in creating a culture of asset management and
providing direction to set corporate objectives, strategic plans and levels of service.

                                          Financial
                                         Statements

                    Financial Plan                          Strategic Plan

                                                                 Levels of
                       Budget
                                                                  Service

                                           Asset
                                        Management
                                           Plan

12
Current Situation
The Township’s current asset management plan was written in 2014 and includes core assets. The
plan indicates a replacement value of assets of $64 million, $35.5 million being roads. The plan projects
$22.4 million of assets needing repair or replacement within ten years (2015 to 2025); that would equate
to approximately $2 million in work per year. Most of the work required is on roads. The plan estimates
the infrastructure deficit at that time to be $7.5 million. This represents the shortfall in funding available
to complete the work estimated to be required on core assets.
The Township of Leeds and the Thousand Islands is not alone in facing an infrastructure deficit.
Estimates suggest that 60% of Canada’s infrastructure is owned by municipal governments and that
35% of municipal assets need attention.
One consultant estimates the provincial infrastructure deficit to be $60 billion not including parks,
recreation, libraries and cultural centres. There is a lack of resources available to address this issue in
municipalities across the province. The same is true for the Township of Leeds and the Thousand
Islands.
While the asset management plan was completed in 2014 and the Strategic Asset Management Policy
was passed by Council in 2019, the Township lacks a complete asset listing. Work is needed to improve
the central repository of asset information with condition and risk data on all Township owned assets.
Another significant requirement is the definition of levels of service. This involves aligning customer
levels of service with Council priorities, as well as related technical levels of service by asset. It is going
to require time and resources to gather the required asset information. The detailed asset inventory
forms the basis of the asset management plan, annual budgeting, and financial planning strategies.

13
Next Steps
Staff are working on the compilation of relevant asset data for all Township assets. This includes
accounting records, studies and other asset related documentation. There is currently a significant gap
in asset information for the largest component of assets, that being roads. The Operations Division is
planning a roads need study in 2020 which will provide valuable linear asset information.
Asset Management Software
Staff are currently conducting a competitive procurement process for an asset management/work order
management enterprise software system. This will allow staff to automate many business processes
including the tracking of all operating and capital work tied to specific assets. The asset data, related
condition and risk information will facilitate budgeting and longer-term financing strategies. The
implementation of this system will require significant time and resources and is expected to take three
to five years, depending on the scope of the project. The timeline for implementation of the software
and related asset management processes is dependent on Council’s direction through allocation of
resources in the budget.
General Ledger Structure
There are many changes to the structure of the general ledger in the 2020 budget. The realignment of
some departments and costs is intended to facilitate the collection of data by asset. The main change
for 2020 is the reallocation of costs by facility. Previously the Township’s corporate building and garage
complex at 1233 Prince Street was included the Recreation budget. The fire stations and corporate
building have now been reallocated into separate departments as follows:
 Previously   Name                                New Department       Name
 200-2000     Fire administration costs           202-2000             Fire Station #2
 200-2000     Fire administration costs           201-2000             Fire Station #3
 200-2000     Fire administration costs           204-2000             Fire Station #4
 700-7105     Municipal Building and Garage at    117-1170             Municipal Building
              1233 Prince Street                                       & Garage

This realignment means that heat, hydro, communication, insurance, building maintenance and all
other expenditures will be coded to the facility to which they relate. This will help management to
understand the true costs for these facilities and more effectively manage capital and/or operating work
going forward.
Facility maintenance salary has been budged in the corporate facility area, (117-700), with the intent to
have salary costs allocated to the facilities where resources are spent.
2020 will be a year of transition as staff endeavor to more accurately code costs to the related assets
which will improve available data and future decision making.
Other changes included in the 2020 budget are:
     o Creation of a “Non-Departmental” department to capture provincial funding such as the Ontario
       Municipal Partnership Fund (OMPF), Federal Gas Tax and any related expenses or transfers.
       These costs are not attributable to any department and are therefore being included as a
       separate department.

14
o Replacing Corporate Management & Support (113) with CAO, Clerk & HR, and replacing
       Program Support (114) with Finance and Information Technology. The intent is to simplify the
       costs posted to these two departments and allow for more effective management of costs.
       Information Technology has a separate program within Finance and Information Technology to
       allow for effective management of these costs as this is an area with increasing budgetary
       pressures.
     o The Township’s portion of the property tax expense for the Casino is now included in the same
       department as the Casino revenue (was previously in corporate management).
     o The annual accrual for future landfill site liabilities is now included in the landfill department (was
       previously in corporate management).
     o The Auditors fees are reallocated from Corporate Management to Finance and Information
       Technology.

 This Photo by Unknown Author is licensed under
Asset Management Staffing Requirement
The 2020 finance budget includes $50,000 in salaries and $16,000 in benefits for a portion of a full time
employee to work on the implementation of the asset management software and work on the asset
management plan. The number one priority related to the plan will be to gather a complete and accurate
inventory of asset information for the Township. While the addition of this resource to coordinate this
work is very valuable, cooperation and resources from all departments across the organization is
essential to be successful in implementing the software and to facilitate the completion of an updated
asset management plan. Asset management affects every department and will impact business
processes throughout the Township.

15
Property Taxes
The Municipal Property Assessment Corporate (MPAC) is an independent, not for profit corporation
funded by all Ontario Municipalities and is accountable to the Province, municipalities and property
taxpayers through its 13 member Board of Directors. MPAC’s role is to accurately assess and classify
all properties in Ontario in compliance with the Assessment Act and regulations set by the Government
of Ontario. MPAC is responsible for providing assessment values for all of the properties in the
Township and provides annual assessment rolls used by the Township to calculate property taxes.
Property Assessments are updated every four years. The 2016 Assessment update reflects the
valuation date of January 1, 2016 for the 2017 to 2020 property tax years. The 2020 Assessment
Notices were delivered to residents mid-November for the 2020 tax year.
The Township’s current value assessment has increased from $1.9 billion in 2013 to $2.4 billion
projected in 2020, an increase of approximately 3.4% per year.

The majority of the Township’s assessment is residential, comprising 84% of the total assessment value
or $2 billion of the $2.4 billion in total assessment. Residential assessment generally does not pay for
itself when considering the varied municipal services provided to residential properties in proportion to
the property tax revenue generated.

16
2020 Estimated Assessment

                      Description                  Rtc Count         Phased CVA % of total Est. Weighted CVA % of total
              Commercial                                  241          134,768,300   5.6%          180,642,584  7.70%
              Exempt                                      215           35,143,000   1.5%                    0  0.00%
              Farm                                        678          106,519,100   4.4%           26,629,775  1.14%
              Industrial                                   32            3,395,600   0.1%            6,041,385  0.26%
              Industrial New                                5              861,100   0.0%            1,532,314  0.07%
              Multi-Residential                             2            1,666,000   0.1%            1,666,000  0.07%
              Pipeline                                      7           29,241,000   1.2%           48,393,855  2.06%
              Residential                               7,116        2,017,447,109 84.1%         2,017,438,529 85.99%
              Managed Forest                               70            4,569,900   0.2%            1,142,475  0.05%
              Railway Right-of-Way                          2                    0   0.0%                    0  0.00%
              Commercial New                               16            9,898,800   0.4%           13,289,925  0.57%
              Payment in Lieu                             126           55,821,300   2.3%           49,242,896  2.10%
              Shared Payment in Lieu                        4               98,600   0.0%              109,224  0.00%
                                                          8,514       2,399,429,809                               2,346,128,962

The Exempt properties are Township owned properties.
The estimated weighted current value assessment (CVA) is the assessment value multiplied by the tax
ratio. For example, the tax ratio for farmland is 0.2500. The value of farmland assessment that is taxed
is one quarter of the assessment.
The tax ratios are set by the County and are not expected to change for 2020.

Outstanding Appeals
The largest property tax appeal currently outstanding is for the Casino, a special purpose property that
is currently assessed at $87,000,000. If successful in the appeal, this could result in a write off of
approximately $184,500 for the Township for the years 2016 through 2019. This is currently not
budgeted for in 2020.
                                                          Leeds & Thousand Islands - 700 Series Open Appeals 2019
Tax Year       Roll Number          Address         Municipality          Prop. Series     Prop. Code Site Area RTC/RTQ Phased CVA Est. Weighted CVA Appeal #   Status
  2019     08 12 812 020 044 01 380 HIGHWAY 2 Leeds & Thousand Islands SPECIAL PURPOSE         713        34.840 CT       87,000,000      117,102,000 3345255   Open

17
Tax Rates
The residential property tax rate in the Township of Leeds and the Thousand Islands has remained
consistent over the last 10 years, except for the 10% increase in 2014. However even with the increase
in the Township portion of the rate, the overall tax rate increased 1.9% in 2014.
            Township                 County               Education            Total Tax
     Year      Rate    % Change       Rate    % Change       Rate    % Change    Rate    % Change
     2019   0.00392731      3.3%   0.00370869      0.0%   0.00161000    -5.3% 0.00924600     0.4%
     2018   0.00380140      1.2%   0.00370869      0.0%   0.00170000    -5.0% 0.00921009    -0.5%
     2017   0.00375478      2.7%   0.00370869      2.0%   0.00179000    -4.8% 0.00925347     0.9%
     2016   0.00365537      1.2%   0.00363579     -1.0%   0.00188000    -3.6% 0.00917116    -0.7%
     2015   0.00361239      2.2%   0.00367257      0.0%   0.00195000    -3.9% 0.00923496     0.0%
     2014   0.00353634     10.0%   0.00367257     -1.7%   0.00203000    -4.2% 0.00923891     1.9%
     2013   0.00321424      5.7%   0.00373523     -0.6%   0.00212000    -4.1% 0.00906947     0.7%
     2012   0.00304087     -3.0%   0.00375854     -1.6%   0.00221000    -4.3% 0.00900941    -2.7%
     2011   0.00313341     -3.8%   0.00381958     -2.8%   0.00231000    -4.1% 0.00926299    -3.5%
     2010   0.00325759             0.00392896             0.00241000          0.00959655

For comparison purposes, the average increase in the Ontario CPI and Inflation rates for the same
period was 1.85%. Of the Township rate increases, five of nine years, the increase was higher than the
average 1.85%. The other four years, the Township tax rate changed by less than what the Ontario
CPI and Inflation rate was.
The graph also demonstrates the relative consistency of the tax rates over the last several years. The
total Township rate, including the County and Education portions is represented by the red line, and
the blue line represents the Township portion only.

18
2020 Budget Pressures
Utilities
As has been widely publicized, electricity rates continue to increase. Hydro One rates for mid peak and
on peak have increased approximately 18% and 42% respectively over the last nine years. There are
also increases in the other parts of the bill such as regulatory charges.

 This Photo by Unknown Author is licensed under CC BY-ND

Insurance
Insurance costs continue to increase and create pressure on the municipal budget. In 2009, the annual
cost was approximately $200,000 and the budgeted amount for 2020 is $318,500. This is a 59%
increase over the last 10 years. Insurance rates are increasing for all municipalities across the Province.
Increases in the Township’s annual insurance budget are due to a combination of insuring more assets
and increasing insurance premiums.
The Association of Municipalities Ontario released a submission to the Attorney General of Ontario,
“Towards a Reasonable Balance: Addressing growing municipal liability and insurance costs.” Joint
and several liability means higher insurance costs and diverts property tax dollars from delivering public
services. As public organizations with taxation power and perceived “deep pockets”, municipalities have
become focal points for litigation when other defendants do not have the means to pay. Despite
enormous improvements to safety, including new standards for playgrounds, pool safety, and better
risk management practices, municipal insurance premiums and liability claims continue to increase.

19
Salaries and Benefits Budget
The Salaries and Benefits budget has increased approximately $271,000 or 5.8% over previous year.
The 2020 budget was developed with a 1.9% increase to salary costs and an estimated 5% increase
to benefits.
The salaries budget has increased $159,000 from approximately $3.3 million to $3.5 million. The
benefits budget has increased $106,000 and is estimated at $1 million for 2020. The overtime budget
is in line with 2019 and the honorarium budget has increased $7,400.
New in the 2020 salary budget is the asset management resource at $66,000, which is proposed to be
funded by Modernization Funding and has no impact on the tax levy. Also new is additional part time
by law enforcement hours in the amount of $18,000.
The 2019 budget included an allocation of salary and benefit costs of $50,000 to the capital budget,
thereby reducing the operating budget. This has not been budgeted in 2020 as it is not anticipated that
internal staff will allocate significant time to capital projects in 2020. The 2019 actuals for internal staff
time charged to capital has been minimal.
Further details with respect to individual employee movement and budget impacts will be reported in
closed session.

20
Legislated Requirements
The municipal environment is becoming increasingly regulated placing more demand on time and
resources. Staff need to stay abreast of changing legislation, understand the impacts, and implement
changes to current systems and/or processes to ensure compliance. Here are just a few of the recent
legislation changes.
        November 2019, Government Introduced Bill 138, Plan to Build Ontario Together Act, 2019
         which includes changes to the Development Charges Act, 1988
        October 2019, Government Introduced Bill 136, Provincial Animal Welfare Services Act, 2019
        October 2019, Government Introduced Bill 132, Better for People, Smarter for Business Act
         which includes 80 changes across 14 ministries.
        June 2019, Ontario Government Passed Bill 108 which included Cannabis Control Act and
         changes to Conservation Authorities Act.
        December 2017, Ontario Regulation 588/17 Asset Management Planning for Municipal
         Infrastructure.

                         This Photo by Unknown Author is licensed under CC BY-SA

21
One Time Expenses
There are a number of one-time expenses related to studies and plans required to move the
organization forward operationally and strategically. These costs are included in operating but are
largely funded by reserve funds. The $449,000 total noted in the table does not impact the tax levy.
However, these amounts are included as increases in the expense and revenue budgets.
The following table summarizes the studies and plans included in the proposed budget:
 Dept Description                               Amount   Funding
 300 Roads Inventory and Needs Study            $50,000  Special Projects Reserve
 114 Asset management software                  $50,000  Modernization funding
      implementation*                                    (Working Fund Reserve)
 800 Lansdowne Modeling and growth              $75,000 $50k Water & Sewer RF
      study for water & sewer                            $25k Special Projects
                                                         Reserve
 800    Community Improvement Plan              $24,000 Community Improvement
                                                         Plan Reserve Fund
 800    Rockport Village Study                  $70,000 Special Projects Reserve
 820    Broadband Design Study                  $50,000 Modernization Funding
                                                         (Working Fund Reserve)
 820    Sports Tourism Strategy                 $30,000 Special Projects Reserve
 410    Comprehensive Waste                     $100,000 Special Projects Reserve
        Management Plan
        Total Funded by Reserve Funds           $449,000

 113    Strategic planning exercise             $30,000      Property tax levy

*Also proposed from the Modernization Funding (Working Fund Reserve), is the Asset management
position at $50,000 plus $16,000 benefits.
Roads Inventory and Needs Study
Due to challenges related to the collection of traffic counts on Township roadways, this project was not
completed in 2019 and is proposed to be carried over to 2020. Traffic volume information is a critical
input in a Road Needs Study as it serves to confirm the class of the roadway. The class of roadway
determines the level of service under the Minimum Maintenance Standards. The data also forms the
basis of recommendations related to roadway maintenance activities (such as crack sealing), asset life
preservation, intervention or rehabilitation techniques (i.e. micro-surfacing) and potential road
conversion to hard surface. It is also envisioned as part of this exercise that qualitative and quantitative
data about the Township’s road network would be gathered to be fed into our future Asset Management
Software.
Lansdowne Modelling and Growth Study for Water and Sewer
In 2020 Operations will initiate a review of the existing water and sanitary system in the Village of
Lansdowne. The purpose of this study will be to undertake an assessment of the existing system to
identify short term and long-term system improvements and to identify the extent of new development
that can be supported on the system. The study will also include an assessment regarding the
feasibility of the existing system to service the settlement area boundary established for the Village in
the Official Plan.
22
Community Improvement Plan for the Township
Staff have applied for RED Grant Funding to Complete a Community Improvement Plan for the
Township. The money being budgeted from the reserve fund is matching funding for the grant money
that is requested.
The purpose of this project is to create a Community Improvement Plan (CIP) for each settlement area
and one for the rural areas. The CIP would identify local needs and priorities that will have the most
value or benefit in assisting with economic development in the local context.
The resulting Community Improvement Plan(s) will be a tool to identify local priorities and corresponding
levels of municipal assistance to achieve the objectives in the improvement of the areas. The CIP
would assist in facilitating community change in a consistent, coordinated approach and identify
resource requirements and opportunities to the local residents/businesses which would provide an
incentive for improved local investment, and new private sector investment in the municipality.
Rockport Strategic Plan Update and Transportation Strategy
At their meeting on June 17, 2019 Council passed the following motion:
          THAT Council support a comprehensive review of options for the Village and allocate a budget
          of $70,000 for this review to include a transportation and land use assessment, associated
          mapping and policy recommendations.
Dillon Consultants has been retained to complete a review of the Rockport Strategic Plan and provide
options to address ongoing land use conflicts between the residential, commercial and public land uses
in the Village. The scope of this study is to include a transportation and land use assessment,
associated mapping and policy recommendations.
Broadband Design Study
In recognition of the growing role of broadband connectivity as supported by the federal government’s
commitment to Infrastructure Investment in Rural Canada as well as the County Business Expansion
and Retention report, Council appointed a Broadband Committee to report on possibilities for providing
improved broadband access within the Township. In review of the current broadband landscape and
within the framework of the Federal Infrastructure Investments for Rural Communities across Canada,
Council recognizes that there may be a need for supporting studies regarding business planning,
technological infrastructure and operational planning in 2020. These initiatives would be consistent and
in support of the Township’s ‘sustainable economic development’ and ‘community development’
initiatives as highlighted in the broader Community Strategic Plan.
Funding to complete a Broadband Design Study will:
     a)   identify gaps
     b)   review service delivery options
     c)   recommend a plan for implementation and
     d)   develop preliminary costing.
This will provide Council with the information that they need to determine the feasibility of rolling out
broadband services across the Township over the coming years.

23
Sports Tourism Strategy
Sport tourism has become increasingly valuable in terms of its ability to attract people to a region to
attend a sporting event or sport related meetings. Several municipalities see this as a critical part of
their tourism attraction strategy and a means to generate new revenue. The Township of Leeds and
the Thousand Islands is rich in outdoor or green infrastructure - its trail systems, open spaces,
waterways and more. These features draw a number of visitors to the region; yet there remain
untapped opportunities associated with these amenities that the Township could further
investigate. The intent is to focus on opportunities that align with existing infrastructure and resources;
this might include, for example, paddling events or duathlons.
Development of a Sports Tourism Strategy would include establishing a Steering Committee to guide
and inform the planning process. The document will include:
        preliminary research,
        inventory development,
        community survey,
        strategy and
        policy development.
The economic benefit to the municipality will come in the form of spending from out of town visitors,
expenditures from event organizers in producing the event, and capital construction costs that are
attributed to hosting an event. The intent is to be ready to pitch opportunities, in partnership with key
local and regional stakeholders, in spring of 2021 at the Sport Events Congress.
Comprehensive Waste Management Plan
Throughout 2018 and 2019, the Township has made significant progress in the implementation of the
Ministry of the Environment, Conservation and Parks (MECP) approved Solid Waste Workplan. As
most of the compliance and technical aspects of the waste disposal sites are now better-understood,
the Township is now in the position to move forward with the development of a Comprehensive Waste
Management Plan. It is envisioned that this study will establish a series of succinct and achievable
recommendations for the management of solid waste in the Township over a 15 to 20 year horizon.

24
Departmental Summaries

25
Taxation and Non-Departmental
                             2020 Revenue 2019 Revenue 2020 Expense 2019 Expense                     2020 Net        2019 Net   $ increase
     Department              Budget       Budget             Budget       Budget                     Expense         Expense    /decrease
 101 Taxation - Township       10,127,071    9,019,719      150,000      158,930                  (9,977,071)     (8,860,789)   - 1,116,282
 103 Casino                     1,500,000    1,500,000    2,678,156    2,193,156                   1,178,156         693,156          485,000
 105 Non Departmental           1,286,000          -        332,000          -                      (954,000)            -      -     954,000
Taxation and Non Departmental 12,913,071    10,519,719    3,160,156    2,352,086                  (9,752,915)     (8,167,633)   - 1,585,282

New for 2020 is the Non Departmental department which includes revenue and expenses not tied to
any operational department. Provincial funding and related transfers are budgeted here.
Revenue
                                  2020           2019
                                  Transfers from Transfers from 2020          2019
                                  Reserve        Reserve        Government    Government   2020 Other   2019 Other   2020 Total   2019 Total
Dept       Description            Funds          Funds          Funding       Funding      Revenue      Revenue      Revenue      Revenue
     101   Taxation - Township                                                               10,127,071    9,019,719   10,127,071    9,019,719
     103   Casino                                                 1,500,000      1,500,000          -            -      1,500,000    1,500,000
     105   Non Departmental                                       1,286,000            -            -            -      1,286,000            -
Taxation   and Non Departmental             -             -       2,786,000      1,500,000   10,127,071    9,019,719   12,913,071   10,519,719

The Taxation department includes the Township’s portion of the tax levy. As noted previously, any
potential write off related to the Casino appeal has not been budgeted. The tax revenue has increased
by approximately $1 million due mainly to an increase in the tax levy. The Casino revenue budget has
been estimated at the same level as 2019.
The Non Departmental revenue was previously budgeted in the Corporate Management and Support
department and therefore shows an increase above 2019 of $1.3 million; there is a corresponding
decrease in revenue in the Corporate budget.

26
Expenses
                                                               2020                2019
                                                               Transfers to        Transfers to
                                   2020 Salaries 2019 Salaries Reserve             Reserve         2020 Utilities   2019 Utilities
Dept   Description                 & Benefits    & Benefits    Funds               Funds           & Insurance      & Insurance
   101 Taxation - Township
   103 Casino                                                          2,443,156       2,193,156
   105 Non Departmental                                                  332,000             -
Taxation and Non Departmental                -              -          2,775,156       2,193,156              -                -

                                         2020           2019
                                         Professional   Professional
                                         Fees &         Fees &          2020 Other   2019 Other   2020 Total 2019 Total
Dept         Description                 Consultants    Consultants     Expenses     Expenses     Expenses    Expenses
         101 Taxation - Township                                             150,000      158,930     150,000     158,930
         103 Casino                                                          235,000          -     2,678,156   2,193,156
         105 Non Departmental                                                    -            -       332,000         -
Taxation and Non Departmental                      -              -          385,000      158,930   3,160,156   2,352,086

Casino expenses are transfers to reserve funds. The transfers to reserve funds have increased by
$250,000 to fund the recreation and culture reserve fund, which would otherwise be overdrawn at the
end of 2020.The portion of the tax payment for the Casino is also budgeted here and was previously
budgeted in the Corporate Management and Support department.
The Non Departmental expense is a transfer to the Federal Gas Tax reserve fund and a transfer to the
Tax Stabilization reserve fund per policy.

27
Council
                               2020 Revenue 2019 Revenue 2020 Expense 2019 Expense            2020 Net       2019 Net $ increase
     Department                Budget       Budget             Budget       Budget            Expense        Expense /decrease
 111 Council                            -          1,000      173,900      158,414            173,900        157,414         16,486
Council                                 -          1,000      173,900      158,414            173,900        157,414         16,486

The 2020 budget for Council is in line with previous year.

Revenue
                      2020           2019
                      Transfers from Transfers from 2020         2019
                      Reserve        Reserve        Government   Government   2020 Other   2019 Other   2020 Total     2019 Total
Dept    Description   Funds          Funds          Funding      Funding      Revenue      Revenue      Revenue        Revenue
    111 Council                                                                        -          1,000            -          1,000
Council                         -             -             -             -            -          1,000            -          1,000

The 2019 budget included $1,000 in revenue related to the 2019 Election. Nothing has been
budgeted for 2020.

Expenses
                                                                 2020                2019
                                                                 Transfers to        Transfers to
                                     2020 Salaries 2019 Salaries Reserve             Reserve        2020 Utilities 2019 Utilities
Dept   Description                   & Benefits    & Benefits    Funds               Funds          & Insurance    & Insurance
   111 Council                            138,400       135,514                                             2,000          1,000
Council                                   138,400       135,514             -                  -            2,000          1,000

                                      2020             2019
                                      Professional     Professional
                                      Fees &           Fees &          2020 Other   2019 Other   2020 Total 2019 Total
Dept   Description                    Consultants      Consultants     Expenses     Expenses     Expenses   Expenses
   111 Council                                                               33,500       21,900    173,900     158,414
Council                                           -               -          33,500       21,900    173,900     158,414

The largest increase in the Council expense budget is in information technology costs which is now
allocated based on users. The training and development expense budget is at $13,500, the same as
2019, however 2019 actuals are at $15,400 and will need to be monitored in 2020.

28
Corporate Services
                                   2020 Revenue 2019 Revenue 2020 Expense 2019 Expense                                 2020 Net          2019 Net   $ increase
     Department                    Budget        Budget            Budget       Budget                                  Expense          Expense    /decrease
 112 Election                                -             -       17,950       17,920                                   17,950           17,920               30
 113 CAO, Clerk & HR                       5,700    1,647,200     776,300    1,271,504                                  770,600         (375,696)       1,146,296
 114 Finance & IT                       626,000       178,850     986,700      940,879                                  360,700          762,029    -     401,329
 115 Donations                            83,750        83,750     83,750       83,750                                      -                -                -
 116 Health and Safety Committee                                    1,600        1,700                                    1,600            1,700    -         100
 117 Municipal Building & Garages 1233 Prince
                                           5,000
                                              St           -      198,700          -                                    193,700              -            193,700
 205 Emergency Preparedness                                        42,600       76,334                                   42,600           76,334    -      33,734
 270 Livestock                             3,000         3,700      3,800        4,150                                      800              450              350
 280 Fenceviewers                            100           500        500          500                                      400              -                400
 500 Health Services                                               36,000       36,500                                   36,000           36,500    -         500
 510 Cemeteries                              -             -        8,450        8,086                                    8,450            8,086              364
 830 Tile Drainage                        83,000        83,760     83,000       83,760                                      -                -                -
Corporate Services                      806,550     1,997,760   2,239,350    2,525,083                                1,432,800          527,323          905,477

The 2020 budget is a net increase of $905,500 over 2019. This is due to various reallocations of
revenues and expenses to simplify the budget more effectively manage costs by department.
New for 2020 is in the inclusion of the municipal building and garage at 1233 Prince Street of $193,700
(dept. 117). This is offset by a decrease in expenses in the Recreation and Culture Department. The
largest variance, $1.2 million in the CAO, Clerk & HR area is because Provincial funding amounts are
budgeted in Non Departmental in 2020, which has a corresponding increase in revenue of $1.3 million.
Revenue
                                                      2020           2019
                                                      Transfers from Transfers from 2020         2019
                                                      Reserve        Reserve        Government   Government   2020 Other   2019 Other   2020 Total    2019 Total
Dept     Description                                  Funds          Funds          Funding      Funding      Revenue      Revenue      Revenue       Revenue
     112 Election                                                                                                      -            -              -             -
     113 CAO, Clerk & HR                                       -              -             -       1,290,830        5,700      356,370        5,700     1,647,200
     114 Finance & IT                                      116,000            -                                    510,000      178,850      626,000       178,850
     115 Donations                                          83,750         83,750                                      -            -         83,750        83,750
     116 Health and Safety Committee                                                                                                               -             -
     117 Municipal Building & Garage 1233 Prince St                                                                  5,000          -          5,000             -
     205 Emergency Preparedness                                                                                                                    -             -
     270 Livestock                                                                                                   3,000        3,700        3,000          3,700
     280 Fenceviewers                                                                                                  100          500           100           500
     500 Health Services                                                                                                                           -             -
     510 Cemeteries                                                                                                    -            -              -             -
     830 Tile Drainage                                                                                              83,000       83,760       83,000        83,760
Corporate Services                                         199,750         83,750           -       1,290,830      606,800      623,180      806,550     1,997,760

Revenue for penalty and interest on taxes and other finance related revenue has been reallocated to
finance as shown in the above table. Also included in the Finance revenue budget is a transfer from
the Working Fund Reserve – Modernization Funding in the amount of $116,000 for asset management
related costs: software and staffing.

29
You can also read
NEXT SLIDES ... Cancel