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HomeMy WebLinkAboutFebruary 27, 2024 - Special CouncilTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM SPECIAL MEETING AGENDA MUNICIPAL OFFICE 56169 Heritage Line, Straffordville, ON Council Chambers – HYBRID Tuesday, February 27, 2024 6:00 p.m. The February 27, 2024 Special Council Meeting will allow for a hybrid meeting function. You may attend in person or virtually through the live-stream on the Municipality of Bayham’s YouTube Channel 1. CALL TO ORDER 2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF 3. REPORTS TO COUNCIL A. Report TR-06/24 by Lorne James, Treasurer re 2023 Q4 Variance Report B. Report TR-07/24 by Lorne James, Treasurer re 2023 Surplus Allocation C. Report TR-08/24 by Lorne James, Treasurer re 2024 Fiscal Outlook Report 4. BY-LAW TO CONFIRM THE PROCEEDINGS OF COUNCIL A. By-law No. 2024-008 Being a by-law to confirm all actions of Council 5. ADJOURNMENT REPORT TREASURY DEPARTMENT TO: Mayor & Members of Council FROM: Lorne James, Treasurer DATE: February 27, 2024 REPORT: TR-06/24 SUBJECT: 2023 Q4 VARIANCE REPORT BACKGROUND The Q4 (fourth quarter) financial reports are provided for Council’s fiduciary review. This Report provides a summary of year-end revenue and expenditure to December 31, 2023, and variances to the Operating Budget and Capital Budget. This Report also identifies ongoing opportunities to re-invest maturing investments. DISCUSSION Operating Budget The Operating Budget is above expected levels, given the cyclical nature of operations and higher inflationary period. The Municipality experienced greater operational pressure due to higher costs and lower revenues in some functional areas. Capital Budget The Capital Budget is generally consistent with expected levels with some capital savings in General Government and Public Works. A few projects were paused or deferred to 2024 capital budget. Financial Impacts The 2023 Q4 Operating Revenue & Expense Variance Report is attached to this Report and provides an overview of the 2023 Budgeted versus Actual Revenues and Expenditures as of December 31, 2023, including a column identifying the Percentage Consumed. Investments The Municipality has an opportunity again to re-invest in another round of short-term (1-year) GICs with returns above 5.2 percent. The GICs are $10,525 for the Eden Cemetery on a 1-year term and for the Municipality of Bayham $526,250 on a 1-year and 25 days term. TR-06/24 2 STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. ATTACHMENTS 1. Appendix A: 2023 Q4 Operating Revenue & Expense Variance Report 2. Appendix B: 2023 Q4 Capital Expense Variance Report RECOMMENDATION 1. THAT Report TR-06/24 re 2023 Q4 Variance Report be received for information; 2. AND THAT Council direct staff to re-invest the maturing GIC investments in the noted duration. Respectfully submitted: Reviewed by: Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer Revenues 05.10 General Taxation $5,748,345 $5,743,102 100% 05.20 Other Revenues $1,159,978 $1,026,000 113%improved returns 10.10 General Government $73,443 $77,000 95% 10.20 Council $0 20.10 Fire Services $40,721 $20,000 204%grant and cost recoveries 20.20 Police Services $2,700 $12,000 22%minimal POA from county 20.30 Conservation Authority $0 20.40 Building Services $109,855 $192,000 57%reduced volume of permit impacting revenue 20.50 Bylaw Enforcement Services $19,833 $0 cost recoveries with shared services 25.10 Roads $615,050 $560,418 110%higher cost recoveries 25.20 Winter Control $1,307 $3,000 44%seasonal winter 25.40 Street Lights $0 30.10 Water $723,809 $770,554 94%lower due to DC revenues 30.15 Richmond Water $97,459 $100,012 97% 30.30 Waste Disposal $136,338 $71,000 192%one time RPRA grants 30.20 Waste Water $971,801 $1,042,500 93%lower due to DC revenues 35.20 Cemeteries $891 $2,000 45%small service fees 40.10 General Assistance $0 45.10 Parks & Recreation $2,350 $2,600 90% 45.20 Straffordville Community Centre $16,141 $8,000 202%additional bookings 45.40 Libraries $81,600 $74,526 109%in line with agreement 45.50 Museums $21,662 $16,200 134%higher student grants 50.10 Planning, Development & Tourism $67,459 $60,000 112%cost recoveries 50.15 Tourism & Marketing $15,020 $15,000 100% 50.20 Environmental Services $1,949 $6,500 30%lower drainage time Capital $3,202,657 $5,684,251 56%reduced due to delay in SCC Expenditures 05.10 General Taxation $0 05.20 Other Revenues $0 10.10 General Government $1,399,859 $1,310,386 107%higher bulding maintenance and legal fees 10.20 Council $98,951 $95,189 104% 20.10 Fire Services $585,953 $573,283 102% 20.20 Police Services $935,627 $964,904 97% 20.30 Conservation Authority $105,068 $106,215 99% 20.40 Building Services $139,527 $133,914 104% 20.50 Bylaw Enforcement Services $79,481 $51,145 155%higher due to additional service added 25.10 Roads $1,985,910 $1,783,624 111%higher costs from weather events and maintenance 25.20 Winter Control $52,548 $123,315 43%favourable winter 25.40 Street Lights $41,555 $36,500 114%additional maintenance 30.10 Water $723,809 $770,554 94%lower transfers 30.15 Richmond Water $97,459 $100,012 97% 30.20 Waste Water $971,801 $1,042,500 93%lower transfers 30.30 Waste Disposal $573,914 $464,000 124%lesser recycling changeover savings / inc gabage cost 35.20 Cemeteries $18,980 $17,500 108% 40.10 General Assistance $5,300 $7,000 76%less submissions 45.10 Parks & Recreation $103,193 $93,793 110%higher maintenance costs 45.20 Straffordville Community Centre $65,206 $56,788 115%higher maintenance costs 45.40 Libraries $81,600 $74,526 109% 45.50 Museums $59,064 $56,645 104% 50.10 Planning, Development & Tourism $190,760 $171,921 111%offset by cost recoveries 50.15 Tourism & Marketing $63,451 $64,713 98% 50.20 Environmental Services $6,140 $15,736 39%drainage expenses in roads department Capital $4,725,213 $7,372,500 64%lower due to delay in SCC Municipality of Bayham Appendix A: 2023 Operating Revenue and Expense Variance Report 2023 Actuals 2023 Budget % Consumed 2023 2023 % Actuals Budget Consumed Funded Via:Status General Government Market Analysis 18,724$ 15,000$ 125%Working Capital Reserve Done Development Charges Study 11,707$ 35,000$ 33%Working Capital Reserve Portion will continue into 2024 Strategic Plan Update 4,834$ 30,000$ 16%Liability Reserve Under budget Website Redevelopment 25,059$ 45,000$ 56%Liability Reserve Under budget Liability Reserve Transfer 15,000$ 15,000$ 100%Levy Done Working Capital Transfer 10,000$ 10,000$ 100%Levy Done Election Reserve Transfer 15,000$ 15,000$ 100%Levy Done Guarantorship Loan Reserve Transfer 1,100,000$ 1,100,000$ 100%Levy Done Fire Pumper 1 -$ 550,000$ 0%Fire Equipment Reserve/Levy Arrives in 2025 Bunker Gear 15,432$ 13,000$ 119%Levy Done Portable Radios -$ 8,000$ 0%Levy Operationalized Generator Fire Hall 37,636$ Contigency Reserve Done Rope and Clutch 11,707$ Levy Done Roads Bayham Drive 151,775$ 250,000$ 61%Gas Tax Done Tollgate Rd.234,845$ 250,000$ 94%OCIF Done Chapel St.24,582$ 25,000$ 98%Levy Done James Line 175,547$ 160,000$ 110%Gas Tax Done Pressey Line 486,198$ 425,000$ 114%OCIF Done Gravel Program 162,050$ 190,000$ 85%Gas Tax Done Sidewalks 98,337$ 100,000$ 98%Levy Done Road Signs -$ 7,500$ 0%Levy Operationalized Guardrails -$ 10,000$ 0%Levy Operationalized Road Side Brushing -$ 30,000$ 0%Levy Operationalized Hill Management 30,000$ 0%Levy Operationalized Water Equipment - Richmond 9,910$ 15,000$ 66%Water Reserve Done Pickup Truck 26,422$ 20,000$ 132%Water Reserve Done Vienna Water Service 1,212,760$ 1,276,000$ 95%Water Reserve/Green Stream Grant Done, holdback to be setup Waster Water System Equipment 8,548$ 45,000$ 19%Wastewater Reserve Ongoing Transfer Switches 21,701$ 60,000$ 36%Wastewater Reserve Ongoing Pickup Truck 26,422$ 20,000$ 132%Wastewater Reserve Done Manhole rehab 4,848$ 25,000$ 19%Wastewater Reserve Ongoing IT Work 10,863$ Wastewater Reserve Done Parks Vienna Community Park 201,427$ 135,000$ 149%Vienna Reserve Fund Done Port Burwell Ball Diamond 8,440$ 200,000$ 4%Parks and Playground Reserve/ Levy 2024 PB Library Pavilion 24,541$ 50,000$ 49%Levy Done Corinth Park -$ 15,000$ Levy Project Cancelled Facilities Facility Audits 35,000$ 0%Levy 2024 PB Lighthouse 136,811$ 225,000$ 61%Facilities Reserve/ Lighthouse Reserve On hold SCC Expansion 117,330$ 2,030,000$ 6%Facilities Reserve/ ICIP Grant On hold Planning and Development Official Plan Review -$ 35,000$ 0%Levy 2024, funds need to be allocated Municipality of Bayham Appendix B: 2023 Capital Expense Variance Report REPORT TREASURY DEPARTMENT TO: Mayor & Members of Council FROM: Lorne James, Treasurer DATE: February 27, 2024 REPORT: TR-07/24 FILE NO. SUBJECT: 2023 SURPLUS ALLOCATION BACKGROUND The purpose of this Report is to advise Council of the 2023 Surplus and recommend that Council approve allocation of the 2023 total surplus of $66,794.42. DISCUSSION The 2023 financial statements have been drafted by the Treasurer. Capital surplus was $232,487.70 and Operating deficit of $165,693.28. Section 290(4)(b) of the Municipal Act, SO 2001, as amended, requires that any surplus from a previous year be included as an estimated revenue within the current budget. If this process is followed each year, during years where large fluctuations in surpluses occur, large tax rate fluctuations may also occur. Therefore, it is common practice for municipalities to allocate their annual surplus to reserves. The recommended allocation of the 2023 surplus is attached hereto as Appendix A and focuses on short-term capital needs. Staff recommend allocations to the Planning Reserve and the Contingency Reserve. Appendix B is specific to unaudited year-end Reserve and Reserve Fund balance. Council will note that transfers associated with the Lighthouse (former Dredging) Reserve and the Facilities Reserve. The transfers in and out are to properly allocate to the newly-named Lighthouse Reserve the associated Lighthouse funds from the 2021 Surplus Allocation report ($125,000) plus recent donations, and to represent the actual 2023 expenditures associated with the Lighthouse. Opposing allocations are represented in the transfer out of the Facilities Reserve. The additional funds over the $125,000 are 2023 costs associated with the SCC expansion. TR-07/24 2 In light of Council’s strategic budget direction with respect to the Ojibwa debt repayment and ongoing operating pressures due to inflation, it is recommended that Council consider an update on review of assets, including but not limited to equipment, buildings or lands, and road allowances for further consideration by Council. STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. ATTACHMENTS: 1. Appendix A: 2023 Surplus Transfer Report 2. Appendix B: 2023 Revised Reserves and Reserve Funds incorporating recommended Surplus Transfers. 3. Appendix C: 2023 Sale of Assets Report RECOMMENDATION 1. THAT Report TR-07/24 re 2023 Surplus Allocation be received for information; 2. AND THAT Council confirm the 2023 Surplus Transfer Report attached hereto as Appendix ‘A’; 3. AND THAT Council confirm the 2023 Revised Reserves, Reverse Funds, and Deferred Revenue Report attached hereto as Appendix ‘B’; 4. AND THAT council confirm the 2023 Sale of Assets Report attached hereto as Appendix “C’; 5. AND THAT Council direct staff to bring forward an updated Surplus of Assets report for all departments of the Municipality. Respectfully submitted: Reviewed by: Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer Transfer Account No. Reserve $40,000.00 2363 Planning Reserve Purpose: To fund the OP Conformity Review 2024, that did not start in 2023. Transfer Account No. Reserve $26,794.42 2331 Contingency Reserve Purpose: To fund any unexpected in-year expenses. Municipality of Bayham Appendix A: 2023 Surplus Transfer Report Account Balance Transfer Interest Transfer Balance No.1-Jan-23 To Income From 31-Dec-23 RESERVES 2301 Working Capital 79,527.60 10,000.00 30,431.27 59,096.33 2302 Equipment 40,000.00 40,000.00 2303 Fire Department Apparatus 5,000.00 5,000.00 2304 Electronic Equipment - - 2305 Road Construction 531,049.41 11,962.61 543,012.02 2306 Otter Valley Chamber 1,414.92 1,414.92 2307 Trail Improvements 147,308.13 11,325.53 7,597.86 151,035.80 2308 Fire Equipment 347,650.12 224,749.00 572,399.12 2310 Water Works 1,101,225.22 72,147.99 440,276.74 733,096.47 2311 Richmond Water - - 2313 County Road Maintenance - - 2314 Building Vehicle 33,698.03 33,698.03 2315 Fire Renumeration - - 2318 Parks & Playgrounds 135,000.00 135,000.00 2319 By-law Vehicle - - 2320 Records Management - - 2322 Lighthouse (ex Dredging)63,600.00 127,635.00 136,810.74 54,424.26 2323 Library Buildings - - 2324 Musuem Artifacts 1,315.85 1,315.85 2326 Museums General 10,653.34 10,653.34 2327 Election - 15,000.00 15,000.00 2328 Waste Management - - 2330 Police Services - - 2331 Contingency 78,535.85 41,794.42 67,528.95 52,801.32 2332 Capital Rate Stabilization - - 2333 Operating Rate Stabilization - - 2334 Straffordville Skate Park 1,731.70 1,731.70 2335 OMPF - - 2336 Municipal Facilities 690,363.60 33,199.28 242,330.45 481,232.43 2363 Reserve - Planning - 40,000.00 40,000.00 2364 SCC Capital Donations 48,129.42 48,129.42 2365 Winter 50,000.00 50,000.00 2367 Guarantorship Reserve 300,000.00 1,100,000.00 1,400,000.00 Consolidated Entities 1,485,247.00 1,485,247.00 5,151,450.19 1,687,813.83 - 924,976.01 5,914,288.01 Balance Transfer Investment Transfer Balance 1-Jan-23 To Gain (Loss)From 31-Dec-23 RESERVE FUNDS 2312 Sewage Works 3,285,632.08 295,509.11 277,768.98- 72,382.29 3,230,989.92 2352 Environmental 76,074.68 6,431.39- 69,643.29 2360 Straffordville Community Ctr 2,411.76 203.89- 2,207.87 2366 Reserve - Storm Sewer 5,250.00 - 5,250.00 2369 Vienna Community Improvement Reserve Fund 486,067.71 16,161.75 201,427.47 300,801.99 Consolidated Entities 166,472.00 - 166,472.00 4,021,908.23 295,509.11 268,242.51- 273,809.76 3,775,365.07 DEFERRED REVENUE 2350 Parkland 66,422.41 33,500.00 5,615.38- 94,307.02 2357 Developer Deposits 31,217.22 2,639.12- 28,578.10 2362 Federal Gas Tax 481,020.81 244,763.76 15,993.94 489,372.04 252,406.47 2368 OCIF 226,658.04 627,699.00 2,141.98 721,042.99 135,456.03 805,318.48 - 905,962.76 - 9,881.42 - 1,210,415.03 - 510,747.63 Development Charges 2400 DC - Water - Bayham - 18,779.61 488.27 19,267.88 2402 DC - Waste Water - 57,838.84 1,503.81 59,342.65 - - 76,618.45 - 1,992.08 - - - 78,610.53 For The Year Ended December 31, 2023 (unaudited) Municipality of Bayham Appendix B: Reserves, Reserve Funds & Deferred Revenue For The Year Ended December 31, 2023 (unaudited) Municipality of Bayham Reserves, Reserve Funds & Deferred Revenue Asset Transfer Account No. Reserve Dennis Road Allowance $5,012.61 2305 Road Construction Reserve 2010 GMC Pickup $800.00 2305 Road Construction Reserve Easton Generator $3,100.00 2305 Road Construction Reserve Ford Water Pump $550.00 2305 Road Construction Reserve Generac PTO Generator $2,500.00 2305 Road Construction Reserve $11,962.61 Municipality of Bayham Appendix C: 2023 Sale of Assets REPORT TREASURY DEPARTMENT TO: Mayor & Members of Council FROM: Lorne James, Treasurer DATE: February 27, 2024 REPORT: TR-08/24 FILE NO. SUBJECT: 2024 FISCAL OUTLOOK REPORT BACKGROUND: This Report is designed to provide Council a forward-looking fiscal outlook of 2024. This Report is to supplement both Operating and Capital budgets and the year-end summary reports. DISCUSSION: Revenues Elgin County in general experienced slowing growth in 2023. The Municipality of Bayham was not immune. This will likely continue into 2024 as the Bank of Canada continues its removal of monetary easing and likely holds rates steady. The continued slowdown in building growth will also impact Water and Wastewater departments with lower Development Charges collections and operational revenues. Municipal staff are closely monitoring the MPAC Phase-In status and its impact on 2025 and 2026 tax assessment and budgets. Staff expect phase-in will not return until after the next provincial election expected in 2026. Expenses The Municipality, like every other business, will continue to see rising costs of materials for both Operating and Capital projects. It is forecast that inflation is cooling, however procurement pressures in capital items such as Fire and Public Works rolling stock will continue to outpace Consumer Price index. The Municipality may have several positions to recruit for in 2024 and through 2025, both for full-time (retirement), part-time, and casual positions. As the current labour market is considered tight in specialized roles, the Municipality will need to be resourceful in both recruitment and retention of these positions to market trends. TR-08/24 2 A new variable for Bayham’s finances is the shared servicing arrangement with the Township of Malahide for Building and By-law Services. This program rolled out in the back half of 2023 and was a net benefit compared to outside contractor services. Varying levels of service and requests will impact this cost center’s performance throughout the year. Operating Budget figures are based on projections, based on current service levels. Debt Risk The Municipality will also be experiencing a tremendous interest rate and financial risk in March 2025, when the 10-year debt term of Project Ojibwa is up for renewal. Presently, the interest rate on the loan is at 2.71 percent. When the term debt is up for renewal, the Municipality could be looking at a term interest rate of 6% to 7% and either have to extend the term of the amortization period of the debt or substantially increasing the annual payments to maintain the 25-year term. Council, in the 2023 Capital budget, allocated $1.1m into the Guarantorship Loan Transfer Reserve for principle debt payments in 2025. A $1m allocation in the 2024 Capital Budget has already been addressed and approved in-principle by Council. A further $1.1m allocation in 2025 will be presented in October during the Special Budget Meeting for the 2025-2034 Capital Budget. Unforeseen Capital Expenses To commence 2024, Council is awaiting formal correspondence from Investing in Canada Infrastructure Program (ICIP) on the de-scoping application of Straffordville Community Hub project (i.e. the Straffordville Community Centre expansion). Once this is made available, Council will need to consider the application’s financial viability with portions of many remaining reserves pledged into 2024 for the construction works. The Lighthouse rehabilitation is still pending at this time, as Council has taken the direction that project is on hold until after March 2025 for Project Ojibwa Debt maturity date. Council will still need to consider funding strategies for the project where grants, donations, or a community partnership are options. Investments The Municipality needs to continue rolling over investments leading up to March 2025, to maximize all investment gains as possible to assist toward repayments. Each quarterly meeting will have re-investing GICs with maturities coming up, as well as additional short-term investing of surplus cash-on-hand. With interest rates expected to remain at this level for the majority if not all of 2024, the Municipality will be in a position to take advantage of favourable GIC rates over the balance of the fiscal year. STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. TR-08/24 2 RECOMMENDATION 1. THAT Report TR-08/24 re 2024 Fiscal Outlook Report be received for information. Respectfully submitted: Reviewed by: Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO. 2024-008 A BY-LAW TO CONFIRM ALL ACTIONS OF THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM FOR THE SPECIAL COUNCIL MEETING HELD FEBRUARY 27, 2024 WHEREAS under Section 5 (1) of the Municipal Act, 2001 S.O. 2001, Chapter 25, the powers of a municipal corporation are to be exercised by the Council of the municipality; AND WHEREAS under Section 5 (3) of the Municipal Act, 2001, the powers of Council are to be exercised by by-law; AND WHEREAS the Council of The Corporation of the Municipality of Bayham deems it advisable that the proceedings of the meeting be confirmed and adopted by by-law. THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: 1. THAT the actions of the Council of The Corporation of the Municipality of Bayham in respect of each recommendation and each motion and resolution passed and other action by the Council at the Council meeting held February 27, 2024 is hereby adopted and confirmed as if all proceedings were expressly embodied in this by-law. 2. THAT the Mayor and Clerk of The Corporation of the Municipality of Bayham are hereby authorized and directed to do all things necessary to give effect to the action of the Council including executing all documents and affixing the Corporate Seal. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 27th DAY OF FEBRUARY, 2024. ____________________________ _____________________________ MAYOR CLERK