Financial Planning & Budgets

Transcription

1 2006 Halton Region Budget & Business Plan Financial Planning & Budgets Financial Planning & Budgets

2 Financial Planning and Budgets PROPOSED 2006 Key Divisional Objectives & BUSINESS PLAN Provide advice to Management and Council on budgetary, fiscal, growth management, rate setting and other financial matters. Prepare financial plans to ensure that growth does not have a financial burden on Halton s existing communities. Strategic Plan & Other Program Deliverables Enhance the relationship between the strategic plan, budget and performance measures to better understand the implications on program costs, service levels and service quality. Develop acceptable financing arrangements for planned development initiatives in order to minimize the impact on existing residents Major Initiatives/Issues Through Council approved Budget Directions, undertake the budget process culminating in the approval of rate and tax budgets and the adoption of a long-term business plan in Continue to seek Government Finance Officers Association award for Distinguished Budget Presentation. Implementation of operating and capital financing policies to maintain and improve operational efficiency and financial control in the delivery of Regional services/programs. Prepare financial plans to initiate development in the next phase of HUSP to ensure development does not have a financial burden on Halton s existing residents. Initiate an update to the Regional development charge by-laws in accordance with revised Development Charge legislation which is anticipated to be enacted in Divisional Functions The Financial Planning and Budgets Division has three sections: Tax Supported Budget, Rate Supported Budget, and Capital Budget and Development Financing. Budget Co-ordination The Tax and Rate-supported Budget sections, along with the Capital Budget and Development Financing section, are responsible for developing budget strategies that reflect the balance between servicing needs and financial affordability. The budget plan incorporates multi-year forecasting and presents a blend of current, debt and reserve financing to achieve long-term stability in the financial plan. These sections coordinate budget submissions, and provide advice and guidance to service delivery departments in the implementation of approved budget plans. HALTON REGION A127

3 Financial Planning and Budgets PROPOSED 2006 & BUSINESS PLAN Financial Planning Fiscal planning increasingly requires that new events be identified early, and their consequences measured and extrapolated into future budget forecasts. These events are then assessed to determine how they affect service delivery, what the financial consequences are, and how they can be financed to maintain the maximum degree of fiscal flexibility for the Corporation. The key objective within the financial planning function is to identify future initiatives and prepare appropriate response strategies. Financial Analysis Work is undertaken on diverse, on-going and specific issues that lead to the consolidated long-term financial plan. These issues often involve departmental input and/or participation on inter-departmental or inter-municipal teams. However, the responsibility for the assessment of financial implications remains within the section. Growth Management Capital Budget and Growth Management section develops financial plans for sustainable growth management in order to provide the infrastructure required to service new development in Halton. Consistent with Halton's Official and Strategic Plans, the section: Identifies and monitors the cost of new growth in Halton to assess the adequacy of financing schemes and limiting the impact of growth so that new developments do not place a financial burden on existing tax/ratepayers Monitors changes to Ontario's development charges regime and provides related ongoing policy advice Liases with Halton's development community in general and resolves development charge-related disputes with individual developers Participates in the evaluation of major developments in Halton. HALTON REGION A128

4 TAX DETAILS 2006 REPORT & BUSINESS PLAN DIVISIONAL OVERVIEW - FINANCIAL PLANNING & S CHANGE IN 2006 BASE CHANGE IN ACTUAL 2004 ACTUAL APPROVED PROJECTED ACTUAL BASE PROGRAM CHANGE REQUESTED TO 2005 APPROVED REQUESTED TO 2005 APPROVED $ $ $ $ $ $ $ $ % $ % OPERATING EXPENDITURES Personnel Services 1,015,293 1,319,496 1,863,700 1,793,700 1,938, ,400 2,070,600 74, % 206, % Materials & Supplies 13,444 15,106 8,050 8,050 11, ,050 3, % 3, % Purchased Services 188, ,015 46,850 41,850 95, ,800 48, % 48, % Minor Capital 3,139 3, % 0 0.0% Grants & Assistance % 0 0.0% TOTAL OPERATING 1,220,626 1,468,879 1,919,200 1,844,200 2,045, ,400 2,178, , % 258, % Financial Expenses 26, , , , , , % 0 0.0% Debt Charges % 0 0.0% Transfer to Reserves 0 6, % 0 0.0% Transfer from Reserves % 0 0.0% CAPITAL FINANCING & RESERVES 26, , , , , , % 0 0.0% DIRECT PROGRAM COSTS 1,247,403 1,660,676 2,019,200 1,944,200 2,145, ,400 2,278, , % 258, % ALLOCATED COSTS / RECOVERIES Direct Charges/Recoveries (251,431) (661,253) (831,500) (831,500) (860,010) 4,800 (855,210) (28,510) 3.4% (23,710) 2.9% Corporate Sustaining Charges/Recoveries (969,000) (797,945) (917,700) (917,700) (987,640) 0 (987,640) (69,940) 7.6% (69,940) 7.6% TOTAL EXPENDITURES 26, , , , , , ,200 28, % 165, % Subsidy Revenue (26,777) (45,769) (10,000) (10,000) (10,000) 0 (10,000) 0 0.0% 0 0.0% All Other Revenues (351,392) (475,556) (260,000) (335,000) (288,000) (137,200) (425,200) (28,000) 10.8% (165,200) 63.5% TOTAL REVENUE (378,169) (521,325) (270,000) (345,000) (298,000) (137,200) (435,200) (28,000) 10.4% (165,200) 61.2% NET PROGRAM IMPACT (351,197) (319,847) 0 (150,000) CHANGE IN 2006 BASE STAFF COMPLEMENT (F.T.E.) APPROVED BASE PROGRAM REQUESTED TO 2005 APPROVED CHANGE IN 2006 REQUESTED TO 2005 APPROVED Permanent % % Temporary TOTAL % % A129

5 TAX DETAILS BASE CHANGE REPORT Financial Planning & Budgets & BUSINESS PLAN CHANGE IN 2006 BASE APPROVED PROJECTED ACTUAL BASE PROGRAM CHANGE REQUESTED TO 2005 APPROVED COMMENTS $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 1,863,700 1,793,700 1,938, ,400 2,070,600 74, Materials & Supplies 8,050 8,050 11, ,050 3, Increased office supplies due to internal reorg Purchased Services 46,850 41,850 95, ,800 48, Professional resources related to DC complaints and issues Minor Capital Grants & Assistance TOTAL OPERATING 1,919,200 1,844,200 2,045, ,400 2,178, , Financial Expenses 100, , , , Debt Charges Transfer to Reserve Transfer from Reserve CAPITAL FINANCING & RESERVES 100, , , , DIRECT PROGRAM COSTS 2,019,200 1,944,200 2,145, ,400 2,278, , ALLOCATED COSTS / RECOVERIES Direct Charges/Recoveries (831,500) (831,500) (860,010) 4,800 (855,210) (28,510) 3.43 Corporate Sustaining Charges/Recoveries (917,700) (917,700) (987,640) 0 (987,640) (69,940) 7.62 TOTAL EXPENDITURES 270, , , , ,200 28, Subsidy Revenue (10,000) (10,000) (10,000) 0 (10,000) All Other Revenues (260,000) (335,000) (288,000) (137,200) (425,200) (28,000) Increased revenue related to subdivision agreements TOTAL REVENUE (270,000) (345,000) (298,000) (137,200) (435,200) (28,000) NET PROGRAM IMPACT 0 (150,000) A130

6 TAX DETAILS 2006 PROGRAM CHANGE FORM & BUSINESS PLAN PROGRAM DETAILS: Program Title: Development Financing Position Title: Intermediate Financial Analyst - Development & Development Assistant Department: Corporate Services Division: Financial Planning & Budgets Cost Centre: Complement Impact: 2.0 Job Class: B3 & A3 Duration: Permanent If Temporary specify length: FUNDING IMPACT: Annualized: Yes Operating If No, # of Months: Salary 107,800 Fringe Benefits 24,600 Other Program Costs - Technology Charges 4,800 Subtotal Operating Expenditures $ 137,200 External Financing Subsidies: (enter as a negative) - Other: (enter as a negative) (137,200) If Other, identify source below: Development Administration Fees Net Impact $ - Funding from Other Regional Sources Cost Element Recovery from Capital: (enter as a negative) - Recovery from Rate or Tax: (enter as a negative) - Net Controllable Costs $ - Halton s development-related capital programs have increased significantly with the start of the HUSP (Halton Urban Infrastructure Plan) Implementation Plan in Since 1998, Halton has facilitated residential growth of more than 20,000 single-detached units and employment growth in the HUSP and Non-HUSP areas through comprehensive financial plans and various financial agreements. In support of such growth, the overall 10-year capital program grew by $600 million from $1.1 billion to $1.7 billion between 2001 and 2005, which was mainly driven by a $356 million increase in the Road program and $218 million in the Water and Wastewater program. The scale of development administration has also expanded significantly during this period, annually processing an average of 4,500 residential units, through subdivision agreements, as compared to 3,500 units prior to In addition, a number of development charges (DC) by-laws, along with complex financial plans have been implemented, following 2 major development charge background studies and extensive public consultation processes. The rapid expansion and added complexity in development financing during these recent years, as described above, have resulted in the need for an increased level of financial and administrative support, in order to sustain the quality of the current operations which require: Additional analysis to deal with the financing of water and wastewater infrastructure between the HUSP and Non HUSP areas of Halton. Increased customer services in providing technical support to the development community, including consultations, regarding different policy applications for HUSP and Non HUSP areas. Sustained in-house expertise to deal with increasing complex development charge complaints, where staff must defend Regional development charge policies. Implementing and monitoring complex financial plans and agreements. Preparation and implementation of growing capital budget. Provision of financial support to monitor and report on the implementation of capital programs, through an increasing number of staff reports, including capital variance and project closure reports, on-going staff reports and bid reports. In addition, in the coming years, staff will be required to undertake an update to the existing DC by-laws, with the initiation of the Places to Grow Studies and updates to the Water, Wastewater and Road Master Plan Studies, and the anticipation of the Provincial revisions to the current Development Charges Act. The new legislation will require all Halton DC by-laws to be updated, in order to align with the new legislation through a comprehensive DC Background Study and public consultation process. The next DC process will require the same comprehensive consultation process used in 2004 which will involve the DC Advisory Committee and related sub-committees and technical Committee which will require more administrative and technical support to deal with the minutes, questions and responses, circulation of material and the ability to post such information on Halton s web in a timely manner. Further, more complex analysis will be required to address the existing development financial plans implemented since 2003 an deal with the adjustments to the Master plans as a result of the Places to Grow Studies. This will require more consultation with the development community than what occurred Financial Planning & Budgets currently has a Senior Financial Analyst, Development Facilitator and Development Officer providing the analytical and administrative support. Given the complexity of administering Regional DC policies, and with the changing planning and legislative environment over the next year, an additional financial analyst and support assistant will be required. These added resources will help to sustain the current operations (that have grown significantly past four years) and to manage the growing demands for services (related to the Places to Grow studies) in the coming years by providing the following: Assistance in reviewing the preliminary impacts on Halton s Business Plan relating to the Places to Grow Studies and Master plan updates. Support in the review of the changes to the Development Charge legislation and the impact on the Halton Business Plan. Technical support for the upcoming comprehensive DC background study and the public consultation process required under the new DC legislation. Technical support for the implementing and monitoring of financial plans related to specific developments. Technical support for the budgeting, the implementing and the reporting of development-related capital programs. Additional analytical support to review bid reports and council reports related to tendering of projects, and capital variance reports. Administrative/clerical support for meetings, liaisons, the public consultation processes and for information management. The required funding to support these positions will be fully recovered by the development charge (DC) admin fees, with no impact to the tax rate. As noted above, the number of residential units processed through subdivision agreements has increased significantly since 2000, which has resulted in increased DC admin fees revenue. This additional revenue will fund the additional compliments with no increase in DC admin fees. As noted in CS (re: 2006 Budget Directions), Residential growth in Halton has been strong in recent years and is expected to continue this trend over the planning horizon. An alternative to hiring these resources would require hiring on contract in order to sustain current operations for the consistently increasing demand for services, due to the complexity and expanded scope of the operations A131

7 2006 Halton Region Budget & Business Plan Financial Policy & Internal Audit Financial Policy & Internal Audit

8 Financial Policy & Internal Audit PROPOSED 2006 Key Divisional Objectives & BUSINESS PLAN Develop and present tax policies that contribute towards meeting the goals of Halton s Strategic Plan, while ensuring that the Province s current value assessment system is implemented effectively and efficiently Ensure that Halton s financial interests are represented in inter-governmental initiatives Invest Regional funds to secure superior rates of return consistent with Halton s investment policy Participate in the development of Halton s long-term financial plan Provide support for periodic assessments of alternate service delivery models Assess internal controls, risk management and governance processes through a program of compliance and operational audits. Identify opportunities for improvement Strategic Plan & Other Program Deliverables Develop tax policies to ensure equity across property classes within Halton and maintain and enhance Halton s competitive position with neighbouring municipalities Ensure that inter-governmental funding arrangements are developed and administered in the best interest of Halton Region Continue to ensure that the investment program is a major non-tax, non-rate revenue source Maintain the AAA credit rating Develop methods to identify and report on organizational risks throughout the organization and incorporate into the Internal Audit Program Major Initiatives/Issues Participate with GTA municipalities and the Province to develop a new pooling formula for the funding of Social Housing, and a new cost-sharing formula for GO Transit Continue to improve the functionality of the web-based tax analysis program developed for both use in the preparation of the annual tax policy report and to provide assistance to the local municipalities in the preparation of interim and final tax bills Provide analyses to identify the cost structure and financial implications of recommended programs as part of the Comprehensive Housing Strategy Provide guidance and support related to the implementation of the Comprehensive Economic Development Strategy Deliver 2006 Internal Audit Program HALTON REGION A133

9 Financial Policy & Internal Audit PROPOSED 2006 Divisional Functions & BUSINESS PLAN The Financial Policy & Internal Audit Division is responsible for three areas: Financial Policy and Taxation, Internal Audit, and Investment and Cash Management. Taxation Policy Regional municipalities are now responsible for developing and setting a broad array of taxation policies that, prior to 1998, were set by the Province. This section provides input on tax and assessment issues. A tax policy report completed by a working group that includes senior staff from the four Local Municipalities is presented to Council annually. Financial Policy This section supports Halton s long-term financial plan, focusing on collaborating with senior Provincial and GTA/Toronto staff to prepare funding formulae and policy documents. The section is responsible for initiatives such as the funding of pooling for income support and social housing, and GO Transit. Internal Audit This section provides technical advice and support for Halton s operating departments, and serves as the principal advisor to Regional Council on internal controls, risk management and governance issues. Internal Audit provides Regional Council, Management Committee and the CAO with independent, objective assurance and consulting services to evaluate and improve the effectiveness of programs and processes. Complete audit assignments as described in the Internal Audit Annual Workplan Follow-up on prior years audit recommendations, and provide additional support/advice as needed Provide assistance/direction to enhance the quality of strategic and operating decisions made throughout the organization Prepare analysis and recommendations that lead to increased efficiency, lower operating costs and/or an enhanced control environment that maximize the value of the Region s resources HALTON REGION A134

10 Financial Policy & Internal Audit PROPOSED 2006 Investment and Cash Management & BUSINESS PLAN This section provides short and long-term investment services for Halton's money market and bond portfolios (estimated 2005 year end position in excess of $600 million) as well as for other local agencies (e.g.: Halton Community Housing Corporation). Staff also provides periodic advice on general investment strategies to Halton's Local Municipalities, and negotiates and places Halton debentures to meet the financing requirements of Halton's local government sector (Region and Local Municipalities). Staff in this section liase annually with Halton's credit rating agencies and provide background analysis to document the financial strengths of the Regional Corporation and Halton's local government partners. The credit review process is critical for Halton in maintaining its AAA credit rating. The aim of the program is to continually improve Halton's investment and debenturing policies/practices thereby enhancing returns and reducing costs. HALTON REGION A135

11 TAX DETAILS 2006 REPORT & BUSINESS PLAN DIVISIONAL OVERVIEW - FINANCIAL POLICY & INTERNAL AUDIT CHANGE IN 2006 BASE CHANGE IN ACTUAL 2004 ACTUAL APPROVED PROJECTED ACTUAL BASE PROGRAM CHANGE REQUESTED TO 2005 APPROVED REQUESTED TO 2005 APPROVED $ $ $ $ $ $ $ $ % $ % OPERATING EXPENDITURES Personnel Services 267, , , , , ,200 16, % 16, % Materials & Supplies 3,820 2,120 3,825 3,825 3, , % 0 0.0% Purchased Services 145, , , , , ,400 30, % 30, % Minor Capital 0 2, % 0 0.0% Grants & Assistance % 0 0.0% TOTAL OPERATING 416, , , , , ,425 46, % 46, % Financial Expenses 83,238 89,836 85,000 85,000 90, ,000 5, % 5, % Debt Charges % 0 0.0% Transfer to Reserves 0 3, % 0 0.0% Transfer from Reserves % 0 0.0% CAPITAL FINANCING & RESERVES 83,238 93,525 85,000 85,000 90, ,000 5, % 5, % DIRECT PROGRAM COSTS 499, , , , , ,425 51, % 51, % ALLOCATED COSTS / RECOVERIES Direct Charges/Recoveries (329,298) (269,875) (247,670) (247,670) (286,100) 0 (286,100) (38,430) 15.5% (38,430) 15.5% Corporate Sustaining Charges/Recoveries (285,500) (602,333) (697,155) (697,155) (710,325) 0 (710,325) (13,170) 1.9% (13,170) 1.9% TOTAL EXPENDITURES (114,835) 50,908 0 (86,080) % 0 0.0% Subsidy Revenue % 0 0.0% All Other Revenues % 0 0.0% TOTAL REVENUE % 0 0.0% NET PROGRAM IMPACT (114,835) 50,908 0 (86,080) % 0 0.0% CHANGE IN 2006 BASE STAFF COMPLEMENT (F.T.E.) APPROVED BASE PROGRAM REQUESTED TO 2005 APPROVED CHANGE IN 2006 REQUESTED TO 2005 APPROVED Permanent % % Temporary TOTAL % % A136

12 TAX DETAILS BASE CHANGE REPORT Financial Policy & Internal Audit & BUSINESS PLAN CHANGE IN 2006 BASE APPROVED PROJECTED ACTUAL BASE PROGRAM CHANGE REQUESTED TO 2005 APPROVED $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 725, , , ,200 16, Materials & Supplies 3,825 3,825 3, , Purchased Services 130, , , ,400 30, Credit Rating Fees Minor Capital Grants & Assistance TOTAL OPERATING 859, , , ,425 46, COMMENTS Financial Expenses 85,000 85,000 90, ,000 5, Increase in bank charges to reflect actual expenditures. Debt Charges Transfer to Reserve Transfer from Reserve CAPITAL FINANCING & RESERVES 85,000 85,000 90, ,000 5, DIRECT PROGRAM COSTS 944, , , ,425 51, ALLOCATED COSTS / RECOVERIES Direct Charges/Recoveries (247,670) (247,670) (286,100) 0 (286,100) (38,430) Corporate Sustaining Charges/Recoveries (697,155) (697,155) (710,325) 0 (710,325) (13,170) 1.89 TOTAL EXPENDITURES 0 (86,080) Subsidy Revenue All Other Revenues TOTAL REVENUE NET PROGRAM IMPACT 0 (86,080) A137

13 2006 Halton Region Budget & Business Plan Financial & Purchasing Services Financial & Purchasing Services

14 Financial and Purchasing Services PROPOSED 2006 Key Divisional Objectives & BUSINESS PLAN To provide the Region s operating and support departments and the Halton Community Housing Corporation the business infrastructure for: The accurate and timely report of business transactions The competitive procurement and timely payment of purchased goods & services The timely billing and revenue collection for Regional services sold Strategic Plan & Other Program Deliverables Ability to comply with expected Public Sector Accounting Board (PSAB) recommendations for the reporting of fixed assets Produce and maintain standards that support the production of performance measures to enhance Council s and the public s understanding of Halton s service efforts and accomplishments 25% of procurement and 50% of vendor payments processed on an E-basis Activity-based financial reports will be regularly available for senior managers Major Initiatives/Issues Maintain corporate responsibility for public reporting and revenue management Provide information, documentation and training for staff about Halton s financial tools and processes Establish a new contract for water meter reading, billing and collection services Lead Halton s participation in benchmarking and accounting policy research to enhance the level and quality of reportable information about Halton s operating results and its non-financial assets Develop the policy framework, processes and data required to support a capital asset reporting framework that complies with expected PSAB recommendations Divisional Functions The Division is divided into two sections, Accounting & Financial Reporting (which includes Revenues & Collection Services) and Purchasing Services. In addition to these services, the Director participates in a number of corporate programs, with support from a Senior Accounting Policy Specialist. For example, the Director is Halton s lead for intermunicipal performance measurement and reporting projects (e.g. OMBI, MPMP, Ontario Centre for Municipal Best Practices), participates on a CICA Task Force developing guidance for public performance reporting, and participates on other corporate committees (e.g. Capital Asset Reporting Project, Customer Service Strategy). HALTON REGION A139

15 Financial and Purchasing Services PROPOSED 2006 Accounting & Financial Reporting & BUSINESS PLAN Maintains the Region s and Halton Community Housing Corporation s financial records Prepares the annual financial statements, provincial Financial Information Return and special purpose financial statements Provide management on time, real time, year to date cost and revenues totals and details of the operating and capital programs. Processes over 70,000 vendor payments, employee expense claims and debenture principle & interest, with vendor invoices paid (on average) in 27 days Responsible for managing water billing contracts with the four area Hydro Electric Companies, and responding to water account customer inquiries Records, monitors and follows up all outstanding regional billings, collecting over 99.9% of outstanding receivables Reconciles and reports staff time, attendance and activity information from COMPASS for distribution to managers throughout the organization Purchasing Services Identifies opportunities for consolidating orders Works with user departments to develop bid documents for more than 170 procurement processes that will attract competitive bids from reputable suppliers Works with other public agencies in Halton through the Halton Co-operative Purchasing Group to obtain economies of scale on purchases Regularly monitors market conditions and benchmarks our costs with other municipalities Monitors the market place and maintains a current procurement strategy for hydro, gasoline, fuel, bio-diesel fuel and natural gas Provides staff training and commodity price outlooks to support effective corporate procurement management Researches opportunities for increasing the amount of web-based procurement activity HALTON REGION A140

16 TAX DETAILS 2006 REPORT & BUSINESS PLAN DIVISIONAL OVERVIEW - FINANCIAL AND PURCHASING SERVICES CHANGE IN 2006 BASE CHANGE IN ACTUAL 2004 ACTUAL APPROVED PROJECTED ACTUAL BASE PROGRAM CHANGE REQUESTED TO 2005 APPROVED REQUESTED TO 2005 APPROVED $ $ $ $ $ $ $ $ % $ % OPERATING EXPENDITURES Personnel Services 1,250,489 1,713,819 1,989,800 1,916,550 2,068, ,900 2,209,900 78, % 220, % Materials & Supplies 8,702 13,139 11,100 8,600 11, , % 0 0.0% Purchased Services 154, , , , , , % 0 0.0% Minor Capital 5,182 9,481 1,500 1,500 1, , % 0 0.0% Grants & Assistance % 0 0.0% TOTAL OPERATING 1,419,010 1,971,035 2,150,750 2,105,400 2,228, ,900 2,370,850 78, % 220, % Financial Expenses % 0 0.0% Debt Charges % 0 0.0% Transfer to Reserves 0 46, % 0 0.0% Transfer from Reserves % 0 0.0% CAPITAL FINANCING & RESERVES 70 46, % 0 0.0% DIRECT PROGRAM COSTS 1,419,080 2,017,460 2,150,750 2,105,400 2,228, ,900 2,370,850 78, % 220, % ALLOCATED COSTS / RECOVERIES Direct Charges/Recoveries (704,208) (750,466) (834,403) (834,403) (935,725) (122,700) (1,058,425) (101,322) 12.1% (224,022) 26.8% Corporate Sustaining Charges/Recoveries (797,932) (1,220,615) (1,243,847) (1,243,847) (1,217,725) (19,200) (1,236,925) 26, % 6, % TOTAL EXPENDITURES (83,060) 46,378 72,500 27,150 75, ,500 3, % 3, % Subsidy Revenue % 0 0.0% All Other Revenues (111,602) (128,281) (72,500) (86,600) (75,500) 0 (75,500) (3,000) 4.1% (3,000) 4.1% TOTAL REVENUE (111,602) (128,281) (72,500) (86,600) (75,500) 0 (75,500) (3,000) 4.1% (3,000) 4.1% NET PROGRAM IMPACT (194,662) (81,903) 0 (59,450) % 0 0.0% CHANGE IN 2006 BASE STAFF COMPLEMENT (F.T.E.) APPROVED BASE PROGRAM REQUESTED TO 2005 APPROVED CHANGE IN 2006 REQUESTED TO 2005 APPROVED Permanent % % Temporary TOTAL % % A141

17 TAX DETAILS BASE CHANGE REPORT Financial & Purchasing Services & BUSINESS PLAN CHANGE IN 2006 BASE APPROVED PROJECTED ACTUAL BASE PROGRAM CHANGE REQUESTED TO 2005 APPROVED $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 1,989,800 1,916,550 2,068, ,900 2,209,900 78, Materials & Supplies 11,100 8,600 11, , Purchased Services 148, , , , Minor Capital 1,500 1,500 1, , Grants & Assistance TOTAL OPERATING 2,150,750 2,105,400 2,228, ,900 2,370,850 78, COMMENTS Financial Expenses Debt Charges Transfer to Reserve Transfer from Reserve CAPITAL FINANCING & RESERVES DIRECT PROGRAM COSTS 2,150,750 2,105,400 2,228, ,900 2,370,850 78, ALLOCATED COSTS / RECOVERIES Direct Charges/Recoveries (834,403) (834,403) (935,725) (122,700) (1,058,425) (101,322) Increased corporate recoveries Corporate Sustaining Charges/Recoveries (1,243,847) (1,243,847) (1,217,725) (19,200) (1,236,925) 26, TOTAL EXPENDITURES 72,500 27,150 75, ,500 3, Subsidy Revenue All Other Revenues (72,500) (86,600) (75,500) 0 (75,500) (3,000) 4.14 Anticipate increased number of Bid document sales & increased interest/late penalty charges TOTAL REVENUE (72,500) (86,600) (75,500) 0 (75,500) (3,000) 4.14 NET PROGRAM IMPACT 0 (59,450) A142

18 TAX DETAILS 2006 PROGRAM CHANGE FORM & BUSINESS PLAN PROGRAM DETAILS: Position Title: Department: Division: Capital Asset Accountant Corporate Services Financial and Purchasing Services Complement Impact: 1.0 Job Class: B3 Duration: If Temporary specify length: FUNDING IMPACT: Annualized: Operating If No, # of Months: Salary 61,100 Fringe Benefits 12,600 Other Program Costs - Technology Charges 3,100 Subtotal Operating Expenditures $ 76,800 External Financing Subsidies: (enter as a negative) - Other: (enter as a negative) - If Other, identify source below: Net Impact $ 76,800 Funding from Other Regional Sources Recovery from Capital: (enter as a negative) - Recovery from Rate or Tax: (enter as a negative) (57,600) Net Controllable Costs $ 19,200 Cost Element SERVICE IMPACT: Enterprise-wide standards for capital asset classification, valuation and reporting 2005 CURRENT: Not available 2006 PROPOSED: Under development BUSINESS CASE: Halton has thousands of pieces of equipment it uses to deliver its products and services - from buildings and furniture to sophisticated water/wastewater plant equipment. These "capital assets" are currently managed using a variety of nonstandard processes that vary across the organization. The Public Sector Accounting Board (PSAB) is developing financial reporting standards that will require complete, consistent information about all of Halton's capital assets to be identified and reported in the Region's audited financial statements by Within this very tight timeline, an appropriate policy framework needs to be created, and data needs to be collected (or created) about the stock, condition and remaining useful life of all of our capital assets. The Capital Asset Accountant will be responsible for assisting with the creation of the management, control and reporting frameworks required to meet PSAB guidelines. This position will manage data collection and reporting procedures, and coordinate the completion of these procedures with departmental staff throughout the organization. It will create and maintain an accounting policy manual that will be the primary reference source for the organization to use for managing the level and extent of documentation required to maintain Halton's capital asset reporting system. It will coordinate inventory procedures to verify the existence, location and condition assessment for all property, plant and equipment. It will assist in the creation of manager reports to support a variety of decisions, including but not limited to those related to asset maintenance, replacement, condition and control. Over the next three years while Halton is preparing to comply with PSAB's guidance, this position will participate as a member of the staff team responsible for establishing policies, processes and reports that will be subject to external audit. Without this position, the organization's capacity to complete the required work in time for meeting PSAB's implementation deadline would be compromised. The success of this work will have a direct impact on the Region's ability to continue to receive an unqualified audit opinion after the PSAB guidance takes effect. A143

19 TAX DETAILS 2006 PROGRAM CHANGE FORM & BUSINESS PLAN PROGRAM DETAILS: Position Title: Department: Division: Analyst - Water/WW Billing Corporate Services Financial & Purchasing Services Complement Impact: 1.0 Job Class: B2 Duration: Permanent If Temporary specify length: FUNDING IMPACT: Annualized: Operating If No, # of Months: Salary 56,000 Fringe Benefits 12,200 Other Program Costs - Technology Charges 2,400 Subtotal Operating Expenditures $ 70,600 External Financing Subsidies: (enter as a negative) - Other: (enter as a negative) - If Other, identify source below: Net Impact $ 70,600 Funding from Other Regional Sources Recovery from Capital: (enter as a negative) - Recovery from Rate or Tax: (enter as a negative) (70,600) Net Controllable Costs $ - Cost Element SERVICE IMPACT: 2005 CURRENT: 2006 PROPOSED: Unbilled water revenue identified and recovered N/A $ 150,000 BUSINESS CASE: The scale of the Region's water meter reading and billing services has grown significantly over the last three years. Upgraded water meter equipment has helped identify examples of historical billing errors, and prompted the issuance of catch-up bills that recover a portion of revenue for water previously delivered but unbilled. These examples, combined with the results of a recently-completed RFP for water meter reading and billing services, prompted staff to identify opportunities to improve contract administration and system monitoring processes to reduce the potential for billing errors to occur, and improve customer service by ensuring timely, accurate and complete water bills are issued. This position will help Halton Region and its meter reading and billing contractors enhance their ability to proactively manage water/wastewater billing and cash collection services. More specifically, based on data provided by the hydros, this position will perform analytical reviews of water revenues, meter maintenance work orders, new meter installs and communicate the findings with both staff and customers. It will help the hydros identify billing problems or errors, identify revenue recovery opportunities and increase customer confidence in the service by reducing instances of missing or inaccurate billing data. Subject to the level of collaboration available from the hydros, this will increase revenue by at least $150,000 annually. Collaboration will occur with the HEC's to ensure billing details consistently present sufficient information to help customers understand the amounts billed. As well, following prescribed schedules, the position will review several reports that will be provided by the hydros in the new contract, and improve both the Region's and the Hydros' service quality. These reports will require concerted staff time and effort to review, as they will offer details that allow Halton to identify whether water revenues are complete and accurate, or whether equipment problems may exist that require further inspection, for a system that includes over 125,000 water meters. A144

20 2006 Halton Region Budget & Business Plan Asset Management Services Asset Management Services

21 Asset Management Services PROPOSED 2006 Key Divisional Objectives & BUSINESS PLAN To provide strategic planning for accommodation of Regional services To acquire, manage and dispose of all real estate interests, and provide commercial leasing services required by the Corporation, Halton Regional Police Service, and client municipalities and agencies To operate, maintain, and repair Regional facilities and related equipment and systems, to conform to standards defined by Municipal and Provincial codes and regulations and accepted industry standards To ensure that all designs for Regional facilities are cost effective and consistent with Regional standards and good engineering practice and to exercise effective cost control during construction of Regional facilities projects To provide acquisition, disposal, and full life-cycle asset management of stationary, and rolling equipment for all Regional Departments, Halton Region Police Service, EMS, and client municipalities and agencies Strategic Plan & Other Program Deliverables Development of a strategic asset management program for Regional facilities Maximize use of Regional facilities through the identification of opportunities to partner with other governments, and private and public sector organizations to share facilities, co-locate facilities or transfer facilities to meet mutual objectives Implementation of Energy Management Program Major Initiatives/Issues Design of Halton Regional Centre expansion project completed Provide annual updates of the Accommodation Strategy to Senior Management Develop a strategy to maximize facility asset life through a comprehensive life-cycle asset management program Secure Land Ambulance sites and/or facilities as required by Halton Land Ambulance Services Program Acquisition of property required for transportation initiatives Develop vehicle specifications for 2006 replacement program, including additions to the fleet resulting from budgeted program changes Completion of Phase 2 of Building Condition Assessments Contract renewals: HRC Food Services, region-wide landscaping, post-warranty contracts for new EMS locations Implementation of Energy Management Program Upgrade to Building Automation System for the Halton Regional Centre HALTON REGION A145

22 Asset Management Services PROPOSED 2006 Divisional Functions & BUSINESS PLAN The Asset Management Division has five inter-related sections, Realty Services, Facilities Projects, Facility Management, Equipment Services, and Regional Stores. Realty Services The Realty Services Section is responsible for the acquisition of all real estate interests required to meet the Corporation's needs (land purchases, leases, easements, licenses) and the disposition of lands and/or interests that are surplus to Regional requirements. Realty Services is responsible for property administration issues pertaining to existing land and facilities (encroachments, realty tax assessment, property boundaries, private party usage, etc.). Major corporate clients are Planning and Public Works, Social and Community Services, and Health. This section also provides these services to the Halton Regional Police Service, The Town of Halton Hills, and The Town of Milton. Facility Projects The Facilities Projects Section is responsible for the provision of engineering planning, design, construction, and contract administration on facility-related capital projects for all Regional Departments and Halton Regional Police Service. Strategic Planning for accommodation and space management in support of Regional programs and services. Facility Management Services The Facility Management Services Section provides pro-active facilities management and maintenance for the Halton Regional Centre, Public Works North and South District Operations Centres, and Halton Waste Management sites. Operations: Daily operations related to facility opening, closing, cleaning of office space, winter and summer grounds maintenance activities, HVAC (Heating/Ventilating/Air Conditioning) systems operations, security and receiving functions.) Maintenance: Preventative maintenance and repair program for building related systems and components (mechanical/electrical/life safety, fire systems, etc.). This mandate also includes service contract administration, capital renewal, and the planning and replacement of equipment and systems, due to failure, obsolescence, or end of useful life. Related Services: Includes meeting room scheduling and rentals, event set-up, tear down and audiovisual equipment services, internal move co-ordination, and contract administration for food services. HALTON REGION A146

23 Asset Management Services PROPOSED 2006 Equipment Services & BUSINESS PLAN The Equipment Services Section is responsible for the preparation, maintenance, and repair of Halton s vehicles and equipment. This includes: Planning & Public Works vehicles and equipment, Halton Region Police Service vehicles, Halton Ambulance, Allendale vehicles, and standby engines located at water and wastewater facilities. Equipment Services provides acquisition and disposal services for Planning & Public Works, and Allendale vehicles. It also provides disposal services for EMS vehicles. Regional Stores Material and supplies are purchased and stored to support Planning & Public Works water and wastewater infrastructure to support construction and maintenance activities, as well as Equipment Services Section, Waste Management Services, and EMS. HALTON REGION A147

24 TAX DETAILS 2006 REPORT & BUSINESS PLAN DIVISIONAL OVERVIEW - ASSET MANAGEMENT SERVICES CHANGE IN 2006 BASE CHANGE IN ACTUAL 2004 ACTUAL APPROVED PROJECTED ACTUAL BASE PROGRAM CHANGE REQUESTED TO 2005 APPROVED REQUESTED TO 2005 APPROVED $ $ $ $ $ $ $ $ % $ % OPERATING EXPENDITURES Personnel Services 1,682,589 2,361,258 2,685,400 2,638,358 2,831,500 92,900 2,924, , % 239, % Materials & Supplies 778, , , , , ,800 55, % 55, % Purchased Services 1,916,901 2,417,767 3,099,400 3,097,200 3,116, ,116,100 16, % 16, % Minor Capital 752, ,976 1,622,300 1,181,800 1,260, ,260,500 (361,800) -22.3% (361,800) -22.3% Grants & Assistance % 0 0.0% TOTAL OPERATING 5,130,794 6,321,103 8,236,778 7,728,236 8,092,900 92,900 8,185,800 (143,878) -1.7% (50,978) -0.6% Financial Expenses % 0 0.0% Debt Charges % 0 0.0% Transfer to Reserves 1,474,115 1,380, , ,000 1,440, ,440, , % 545, % Transfer from Reserves (110,741) (98,747) (717,585) (242,500) (551,303) 0 (551,303) 166, % 166, % CAPITAL FINANCING & RESERVES 1,363,374 1,281, , , , , , % 711, % DIRECT PROGRAM COSTS 6,494,168 7,602,594 8,414,193 8,380,736 8,981,597 92,900 9,074, , % 660, % ALLOCATED COSTS / RECOVERIES Direct Charges/Recoveries (3,872,327) (4,598,656) (4,908,049) (4,810,892) (5,673,414) (69,075) (5,742,489) (765,365) 15.6% (834,440) 17.0% Corporate Sustaining Charges/Recoveries (2,236,307) (2,703,561) (3,182,228) (3,182,228) (3,124,283) (23,825) (3,148,108) 57, % 34, % TOTAL EXPENDITURES 385, , , , , ,900 (140,016) -43.2% (140,016) -43.2% Subsidy Revenue 0 (31,658) (2,500) (2,500) (2,600) 0 (2,600) (100) 4.0% (100) 4.0% All Other Revenues (385,132) (268,848) (321,416) (466,216) (181,300) 0 (181,300) 140, % 140, % TOTAL REVENUE (385,132) (300,505) (323,916) (468,716) (183,900) 0 (183,900) 140, % 140, % NET PROGRAM IMPACT 402 (128) 0 (81,100) (0) 0 (0) (0) % (0) % CHANGE IN 2006 BASE STAFF COMPLEMENT (F.T.E.) APPROVED BASE PROGRAM REQUESTED TO 2005 APPROVED CHANGE IN 2006 REQUESTED TO 2005 APPROVED Permanent % % Temporary TOTAL % % A148

25 TAX DETAILS BASE CHANGE REPORT Asset Management Services & BUSINESS PLAN CHANGE IN 2006 BASE APPROVED PROJECTED ACTUAL BASE PROGRAM CHANGE REQUESTED TO 2005 APPROVED COMMENTS $ $ $ $ $ $ % OPERATING EXPENDITURES Personnel Services 2,685,400 2,638,358 2,831,500 92,900 2,924, , Materials & Supplies 829, , , ,800 55, Increase in fuel costs for Regional fleet Purchased Services 3,099,400 3,097,200 3,116, ,116,100 16, Minor Capital 1,622,300 1,181,800 1,260, ,260,500 (361,800) Decrease relating to normal cycle of vehicle replacements Grants & Assistance TOTAL OPERATING 8,236,778 7,728,236 8,092,900 92,900 8,185,800 (143,878) Financial Expenses Debt Charges Transfer to Reserve 895, ,000 1,440, ,440, , Increased funding for capital program Transfer from Reserve (717,585) (242,500) (551,303) 0 (551,303) 166, Reflective of vehicle replacement program CAPITAL FINANCING & RESERVES 177, , , , , DIRECT PROGRAM COSTS 8,414,193 8,380,736 8,981,597 92,900 9,074, , ALLOCATED COSTS / RECOVERIES Direct Charges/Recoveries (4,908,049) (4,810,892) (5,673,414) (69,075) (5,742,489) (765,365) Increased corporate and fleet recoveries Corporate Sustaining Charges/Recoveries (3,182,228) (3,182,228) (3,124,283) (23,825) (3,148,108) 57, TOTAL EXPENDITURES 323, , , ,900 (140,016) Subsidy Revenue (2,500) (2,500) (2,600) 0 (2,600) (100) 4.00 All Other Revenues (321,416) (466,216) (181,300) 0 (181,300) 140, Decrease due to discontinuation of Regional roads equipment maintenance TOTAL REVENUE (323,916) (468,716) (183,900) 0 (183,900) 140, NET PROGRAM IMPACT 0 (81,100) A149

26 TAX DETAILS 2006 PROGRAM CHANGE FORM & BUSINESS PLAN PROGRAM DETAILS: Position Title: Department: Division: Energy Management Specialist Corporate Services Asset Management Services Complement Impact: 1.0 Job Class: C2 Duration: Permanent If Temporary specify length: FUNDING IMPACT: Annualized: Yes Operating If No, # of Months: Salary 78,100 Fringe Benefits 14,800 Other Program Costs - Technology Charges 2,400 Subtotal Operating Expenditures $ 95,300 External Financing Subsidies: (enter as a negative) - Other: (enter as a negative) - If Other, identify source below: Net Impact $ 95,300 Funding from Other Regional Sources Recovery from Capital: (enter as a negative) - Recovery from Rate or Tax: (enter as a negative) (71,475) Net Controllable Costs $ 23,825 Cost Element BUSINESS CASE: This position is required to provide Corporate leadership and direction in developing and implementing conservation demand management programs and to champion the cause of energy conservation in Halton Region. The Region paid approximately $9.0M and $770K for electricity and natural gas respectively in These costs have increased 67% from $5.4M, and 148% from $310K in the last 5 years. Utility costs are expected to continue their upward trend. The Energy Management Specialist will monitor and analyze energy consumption profiles for all Regional Departments and lead in the development of strategies to optimize costs and reduce utilization through various initiatives and capital projects; establish a comprehensive energy strategy for Halton; and document efficiency gains and conservation success aligned with that strategy. The position will also provide expert advice into sustainable energy and environmentally efficient design initiatives related to new buildings and capital improvement projects for existing infrastructure. A key responsibility of the position will be to develop relationships with industry and government organizations to deliver direct programs and establish conservation initiatives within Halton. Financial assistance will be sought through government agencies or utilities for sustainable design, conservation, and performance-enhancing projects. The Energy Management Specialist will support the Health Department by providing data that will assist in the Partners in Climate Protection program. A150

27 2006 Halton Region Budget & Business Plan Technology Services Technology Services

28 Technology Services PROPOSED 2006 Key Divisional Objectives & BUSINESS PLAN To provide a robust technology infrastructure that gives Regional staff access to corporate resources whenever and wherever they are required. This includes connecting the Region to its business partners and customers/clients through secure access to Regional services. To implement customer access technology to enhance government services accessibility for Halton residents. To develop services management information systems required for effective management of Regional programs and to support performance management and benchmarking initiatives. To manage effectively the growing investment in technology and minimize the total cost of ownership of technology. To investigate and implement new technologies or new applications for existing technologies with productivity enhancement potentials. Strategic Plan & Other Program Deliverables Enterprise Resource Planning and Financial System (SAP) Upgrade Computerized Maintenance Management System implementation Enhanced Operational and Audit Reporting Systems Application Integration Architecture Development ITIL Service Management Implementation Project/Work Portfolio Management System Implementation SCADA network expansion IT Strategic Plan Major Initiatives/Issues Disaster Prevention, Network Security and Business Continuity Electronic Service Accessibility Issues Information and Information Technology Security Number of new large sites increase demand on data/voice and technology support Inter-agency technology coordination complexity and cooperation Increasing after-hours service expectations Increases in contracting and consulting service requirements Market pressures on staff recruiting and retention Increasing demand for meaningful IT performance measures and benchmarks Containing Total Cost of Ownership of an expanding IT Asset portfolio HALTON REGION A151