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01 - Revised January 8, 2013 County Council Agenda ORDERS OF THE DAY SPECIAL COUNCIL FOR TUESDAY, JANUARY 8, 2013 – 1:30 P.M. ORDER 1st Meeting Called to Order 2nd Disclosure of Pecuniary Interest and the General Nature Thereof 3rd Reports of Council, Outside Boards and Staff – see attached 1. PowerPoint Presentation from C.A.O. and Director of Financial Services: Budget Challenges for 2013 (revisited) 2. Review of Council’s Strategic Plan 3. Review of Mission and Corporate Goals 4th Council Correspondence – see attached 1) Item for Consideration 2) Item for Information (Consent Agenda) OTHER BUSINESS 5th 1) Statements/Inquiries by Members 2) Notice of Motion 3) Matters of Urgency 6th Closed Meeting Items 7th Motion to Rise and Report 8th Motion to Adopt Recommendations from the Committee Of The Whole 9th Consideration of By-Laws 10th ADJOURNMENT CASUAL DRESS PERMITTED NOTICE: January 22, 2013 9:00 a.m. - County Council Meeting 1 Budget Challenges for 2013 Revisited January 8, 2013 To obtain council direction on remaining challenges: 1. Homes Revenue shortfall 2. Elgin Business Resource Centre (EBRC) satellite offices in Aylmer and West 3.Eastern ambulance presence Next Steps Obtain Council direction on an appropriate mix of Tax increases, Service Level changes and Capital Spending Presentation of 2013 Capital Budget Jan. 22 Presentation of 2013 Operating Budget Feb. 12 Background OMPF Funding was $5.8 million in 2008 2013 OMPF will be $1.8 million ($4.0 million reduction from 2008 levels) Ford assessment resulted in $0.4 million annually in lost tax revenue, with the potential for further $0.25 million annual in addition to a potential $1.5 million one-time adjustment for prior years Provincial funding increases in 2013 for LTC anticipated to once again be $0.3 million below historical levels The Starting Point for the 2013 Long-Term Plan 2012 budgeted for: a net loss of $2.6 million (a degradation in Municipal Position) A further $1.5 million in losses was planned from 2013-2015 Cumulative effect of 4% tax increases per annum return County to favourable net income by 2016 2021 ending Municipal Position is up by over $10 million, but represents a $30 million reduction in real terms Significant Risk to the Plan in Future Years The province signaled in 2012 that they are directing funding increases to Aging at Home The historical level of funding increases for Long-Term Care of 4-5% still included in the the norm, the County will need to find a further $20 million in offsets over the next ten years long-term funding, offsets for 2014-2022 are not being considered at this time Significant Risk to the Plan in Future Years (cont.) Risk of City exiting partnership on Tourism with a $0.1 million revenue impact Annual increase on $4 million in provincial ambulance funding could become a target for provincial austerity similar to what has already been experienced in Long-Term Care Challenge #1: Homes Revenue Reduced provincial funding for Homes (assuming 1% increase equal to 2012) of $0.3 million ($3.0 million over ten years) Options: 1.Increase 2013 taxes by a further 1.2% 2. Reduce operating costs (previously planned at a $0.4 million efficiency) by a further $0.3 million (potentially affecting service levels) 3. Reduce discretionary Capital Spending by approximately $15 million resulting in a future reduction in net debt payments of approximately $3 million during the ten years of the plan. Challenge #1: Homes Revenue (cont.) Analysis of Options 1. Tax Increases: 2013 will already see a 4% increase, not including the 1% Special Hospital Levy 2.Cost Cutting: almost doubling the cost cutting previously planned will potentially affect service to direction of maintaining service levels 3. Discretionary Capital Spending: although planned service improvements resulting from the rebuild of Terrace Lodge would not be realized, existing service levels can be maintained ( $5 million remains to fund T/L capital maintenance projects) Challenge #1: Homes Revenue (cont.) Option: #3 Discretionary Capital (cont.) $5 million investment in Terrace Lodge: Maintain integrity of structure, and electrical and mechanical systems Second elevator Additions to lower north dining room, kitchen and chapel Renovate kitchenette areas, resident washrooms, main floor washrooms, tub rooms and tuck shop Relocate nurses stations and hair salon Challenge #1: Homes Revenue (cont.) Option: #3 Discretionary Capital (cont.) Pros: No incremental increase in Levy $5 million of capital remains to invest in maintaining existing Terrace Lodge structure Maintains service levels with some improvements in common areas Allows rebuild decision to be considered in the future when the Provincial direction in LTC funding is better understood Cons: When and if a rebuild is decided upon in future years, a tax increase/provincial revenue increase/cost cutting will be required to finance the capital costs Challenge #1: Homes Revenue (cont.) Staff Recommendation: Option #3 THAT the capital expenditures included in the ten-year capital plan of $20 million to expand Terrace Lodge, for with $5 million capital expenditure for Terrace Lodge, classification of the facility, but will ensure that the existing structure remains sound while also upgrading common areas to improve the quality of life for the residents; and that the RFP be adjusted accordingly. Challenge #2: EBRC Satellite Offices Initially funding two offices was estimated to cost $0.3 million annually ($2.8 million over ten years) EBRC and Economic Development have cut costs to reduce increase to $0.2 million annually( $1.7 million over ten years) Reduced satellite office staffing from 4 to 3 Reduced advertising/project costs Eliminated SCOR membership costs Challenge #2: EBRC Satellite Offices (cont.) Recommended Options for Council Determination 1. THAT the 2012 Aylmer satellite pilot project be concluded at the end of the current term, recognizing that business start-up counseling for the City and County will continue to be offered from the Edgeware Road location, OR 2.THAT the Aylmer EBRC pilot satellite office be made permanent according to specific terms and the west-end satellite office be opened at a net cost increase of $170,000 annually funded by an incremental 0.7% tax increase Challenge #3: East End Ambulance staff be directed to investigate ways and means and associated costs of improving the ambulance response times for the Municipality of Bayham bringing them closer to the provincial standard of 14 -15 minutes' response time and report back to Council with available options Increasing service will increase costs: Province will not fund 50% share (verbal) City not likely to fund its share Cost of $0.6 million annually ($6.3 million over ten years) for a 12-hour day shift seven days a week Challenge #3: East End Ambulance (cont.) 2011 Actual (Higher)/Lower (minutes) than Overall Standard Aylmer 6.87 52% Bayham 24.42 (71%) Central Elgin 13.52 5% Dutton Dunwich 14.27 (0%) Malahide 15.15 (6%) Southwold 15.02 (5%) West Elgin 12.80 10% St. Thomas 7.53 47% Overall 12.55 12% Provincial Mandated 14.25 100% Overall Standard Challenge #3: East End Ambulance Challenge of balancing response times will be addressed in the RFP being issued in 2013 for January 2014 implementation Adhoc committee formed to find solution to temporarily improve response times in Bayham for 2013 Challenge #3: East End Ambulance (cont.) Outcome from adhoc 2013 solution committee: Fire department responses to emergency medical calls are most robust when volunteers are at home (evenings, nights and weekends) Increasing ambulance service during weekday day- time hours would have a significant benefit in improving service Providing a first responder will allow for the patient to be stabilized awaiting transfer to hospital Providing two paramedics would provide: Further improvements by providing quicker time to hospital Improve load balancing by supporting the other stations Challenge #3: East End Ambulance (cont.) The advantages of the two paramedic solution is offset by the increased cost The costs see minor reductions if statutory holiday coverage is not provided 10 Hours a Day/5 days per week Including Statutory Excluding Statutory Holiday Coverage Holiday Coverage ($000) % Levy ($000) % Levy One Paramedic 189 0.8% 181 0.7% Two Paramedics 373 1.5% 359 1.4% Challenge #3: East End Ambulance (cont.) Staff recommendation for 2013 solution: THAT, as an interim measure, commencing as soon as possible, one additional paramedic service be added and located at the Straffordville Fire Station, providing service ten hours a day from 7am to 5pm five days a week, including statutory holidays at an incremental costs of approximately $189,000 funded by an incremental 0.8% tax increase; all with the understanding that a creative, long-term solution will be incorporated in the responses to the RFP. Challenge #3: East End Ambulance (cont.) A RFP will be issued on February 1, 2013 with the successful proponent commencing operations January 1, 2014 To address the disparity in response times, the new RFP could set a not-to-exceed standard applicable to all municipalities Staff recommendation: THAT the 2014-2018 Ambulance Service RFP contain the following time standard that exceeds the provincially mandated overall standard of 14.25 minutes by more than 25% (17.8 Opportunity: Reduction in Discretionary Road Capital Pavement is the standard for collector/local County roads Since these roads have lower volume, tar & chip could become the standard for these roads to reduce costs in the future Near term capital expenditures could be reduced through the elimination of repaving with a lesser amount being spent in 10-20 years to convert the road from paved to tar &chip Operating savings over the ten-year plan of up to $1.2 million Opportunities: Discretionary Road Capital (cont.) Roads for consideration for Tar & Chip: Dexter Line Eliminate $4.2 million investment in 2013-15 Close to through traffic investing $0.2 million once required due to lake bank erosion Savings of $4 million capital providing $1 million in operating savings over ten years. Opportunities: Discretionary Road Capital (cont.) Roads for consideration for Tar & Chip (cont.): Roads repaving replaced with micro-resurfacing Reduce investment by $0.8 million providing $0.1 million in operating savings over ten years. h©zmz t©¦;7 h©zmz /¦z· t©¦;7 /¦z· w7 ;© {¦;7 ;© {¦;7 Å Å t·u .Ò©Þ; w7 w7 w7 w7 [;Ýz {· w7 w7 w7 Opportunities: Discretionary Road Capital (cont.) Roads for consideration for Tar & Chip (cont.): Roads resurfacing delayed Delay investment delivering savings of $0.1 million over ten years. h©zmz t©¦;7 /¦z· w7 ;© ;© {¦;7 Å w7 w7 w7 w7 w7 Opportunities: Discretionary Road Capital (cont.) Staff Recommendation: THAT Dexter Line be closed to through traffic, and that lower volume roads be slated for conversion to tar&chip, for ongoing operating savings for $1.2 million annually resulting in a reduction in the tax levy increase of 0.5%. Conclusion Recent developments (Homes funding and added service requests) results in additional financial challenges in 2013 Funding source for service enhancements (satellite offices, east end ambulance) need to be determined Risks to Homes, Ambulance and Tourism funding in 2014 and beyond could result in some combination of tax increases and service cuts in future years Summary of Recommendations Recommended Funding 2013 10 year Tax (Decrease)/ Operating Offsetting Increase Impact Savings ($mils) ($mils) Previous 2013 forecasted 4.0% Residential Tax Increase Hospital Grant Special 1.0% Levy 1. Homes Revenue (0.3) 3.0 0.0% 2. Satellite Offices 0.0 - (0.2) 0.0 - 0.7% 3. Ambulance (0.2) 0.8% 4. County Roads 1.2 (0.5%) Total (0.5) (0.7) 4.2 4.3% - 5.0% + 1% Special Levy ELGIN COUNTY’S STRATEGIC VISION 2011-2014 TOP 5 PRIORITIES FOR THE TERM: 1) Increasing and promoting economic development and tourism 2) Increasing level of cooperation and joint services with the City of St. Thomas 3) Completing the County Official Plan 4) Investing in the county road infrastructure 5) Continuing to streamline county operations using best practices TOP 4 GOALS FOR 2011: 1) Realizing an affordable tax rate increase by maximizing funding sources and improving efficiency and savings 2) Maintaining services 3) Increasing economic development opportunities 4) Increasing level of cooperation with the City of St. Thomas USE OF RESERVES TO REDUCE COUNTY LEVY: Council demonstrated a low to moderate propensity to use reserves to lower the county levy WILLINGNESS TO CUT SERVICES TO ACHIEVE A BUDGET TARGET: Low to moderate inclination to cut services ONE THING YOU WOULD LIKE TO CHANGE ABOUT COUNTY OPERATIONS: Better communication and interaction with local municipal partners including City of St. Thomas SWOT ANALYSIS RESULTS: Primary Strength: Departments/leadership/service and people Primary Weakness: Distance separation, east to west (geography) Primary Opportunity: Increasing economic and tourism opportunities/building the agricultural base and skilled labour force Primary Threat : Not creating economic opportunity/not investing in it 27 March 2006 MISSION STATEMENT: The County of Elgin strives to provide a safe, pleasant community for all citizens through a variety of services designed to promote quality of life and our rich historical and agricultural heritage. CORPORATE GOALS: 1 ) To ensure fiscal responsibility and accountability 2) To promote cultural services 3) To nurture and support dignified long-term care 4) To be recognized as a desired employer 5) To promote Elgin as “The Place to Live” 6) To forge community partnerships 7) To provide innovative and collaborative quality service 8) To recognize and seize opportunities for improvement 9) To build and maintain an efficient, affordable, effective and safe transportation network that accommodates the diverse needs of our communities and is able to support economic development and sustainable growth 28 29 30 31 32 33