2021 Draft Budget Presentation - Roxana Baumann, CMO, CPA, CA Director of Finance/Treasurer - eSCRIBE Published Meetings
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2021 Draft Budget Presentation Roxana Baumann, CMO, CPA, CA Director of Finance/Treasurer
Overview
• The 2021 draft operating budget has been prepared using current
service levels and existing staff complement – no increase or
reduction to operations or programs
• Effort has been made to keep the tax rate impact minimal:
• One-time transfer from Tax Mitigation Reserve Fund
• Utilization of Phase 1 Safe Restart Funding
• No impact to BET rates for PIL revenue retained
• User fee revenue has been adjusted to take into account the 2021
Consolidated Rates & Fees By-law
• Draft budget continues to allocate tax-supported funds towards
future capital
• Draft budget includes a tax rate increase of 3.8%, inclusive of
assessment growth
2021 Assumptions & Estimates • Water and wastewater operated on full cost recovery model funded by user fees • Chief Building Official operating budget assumed to be self-sustaining. Surplus/deficit will be funded from the Obligatory Building Permit Reserve Fund. • Contributions to fund capital infrastructure will increase by $480,000 (3% tax rate increase). Total contribution to Lifecycle Reserve Fund is $3.81 million, up from $3.33 million in 2020. • The Bruce Telecom dividend has been allocated to fund capital projects • Covid-19 costs of $106,000 offset by remaining Phase 1 Safe Restart Grant received in 2020 • Tax Mitigation Reserve Fund contribution of $385,000 to reduce tax rate impacts resulting indirectly from Covid-19 • Education and County tax rates not yet final
Where do our tax dollars go?
Waste Management Economic Dev't & Tourism
$0.03 $0.03
Building & Planning
$0.06
Roads/Transportation
$0.25
General
Government
$0.12
Recreation &
Culture
$0.14
Capital
Infrastructure
Fire & Protection $0.22
Services
$0.16
Revenue Sources
Other Income Reserve Fund Contributions
$3.17 $1.03
10% 3%
Grant Revenue
$1.53
5%
Sewer Charges
$2.27
7% Total Revenue
$32.5 million
Water Charges
$3.06 Taxation
9% $19.41
60%
User Fees
$2.04
6%Property Tax Dollars Allocation
Education
12% The tax bill is split in 3 separate portions:
• 57% to pay for services provided by
the Municipality of Kincardine
• 31% goes to pay for Bruce County
services
County
31%
Municipal • 12% is allocated to School Boards for
57%
education2020 Municipal Taxes per $100,000 in Bruce County
North Bruce Pen $396
South Bruce Pen $550
Saugeen Shores $618
Huron-Kinloss $630
Kincardine $716
Arran-Elderslie $741
South Bruce $753
Brockton $847
$- $200 $400 $600 $800 $1,000Property Tax Revenue by Tax Class
Residential & Multi $11.8 Tax Revenue by Tax Class:
• Residential/Multi - 61.4%
Commercial $2.5 • Commercial - 12.6%
• Industrial - 7.6%
Education Tax PIL $2.4 • Farm/Managed Forest - 6.2%
• Education Tax PIL - 12.1%
Industrial $1.5
Farm & Mgd Forest $1.2
$- $5.0 $10.0 $15.0
MillionsTaxation Revenue from Assessment
As a result of the COVID-19 pandemic, the Ontario government has postponed the 2020
assessment update. Property assessments for the 2021 tax year will be based on the fully
phased-in January 1, 2016 values. Therefore, the assessment increase in 2021 is limited to new
assessment only (no value/equity changes) and is therefore overall, significantly lower than in
prior years.
Over the past 3 years, phased-in value changes have represented 46% of the total assessment
growth for Kincardine:
3-year
2021 Budget 2020 2019 2018
average
In-year growth $ 176,233 $ 384,402 $ 222,155 $ 232,947 $ 279,835
Value/Equity Change $ - $ 233,823 $ 229,845 $ 222,350 $ 228,673
0% tax rate increase $ 176,233 $ 618,225 $ 452,000 $ 455,297 $ 508,507
% net growth 100% 62% 49% 51% 54%
% value changes 0% 38% 51% 49% 46%
In the previous 3 years, taxation revenue from assessment growth and value/equity changes
was on average ~ $509,000. This meant that even with a 0% tax rate increase, the Municipality
would have brought in $509,000 in additional taxation revenue. For 2021, assessment will
remain at fully phased-in values resulting in $0 in value/equity changes and $176,233 in growth
in 2021.1% Tax Rate Increase
1% increase = $163,000 in additional tax revenue
1% increase = $20 per year for average residential
household assessed at $275,000Favourable Budget Impacts • Decrease in Policing Costs of $67,000 (0.4%) to $2,300,000 • Decrease in Fuel, Oil and Diesel estimates of $102,000 (20%) • Decrease in Propane & Hydro estimates of $115,000 (7%) • Increase in projected bag tag revenues of $48,000 (0.3%) • Exemption from 30% reduction to BET rates for PIL properties
Unfavourable Budget Impacts • Reduction in user participation in recreation programs and facilities due to Covid-19, resulting in a deficit increase of $230,000 • Increase in salaries, benefit costs, and employment contributions (CPP, EI, EHT, WSIB) totalling $360,000 • Reduction in rent revenue from loss of tenants at municipal facilities including the MAC and Underwood totalling $49,000 • Increase in estimated insurance costs of $25,000 • Undertaking the Community Improvement Plan for $50,000 • Emergency Lakeshore Road Repairs of $40,000 • Recruitment costs of $40,000
Department Budgets
Council & CAO
Council Goals & Objectives 1. Council team building and development. 2. Assist in the implementation of the Corporate and Economic Development Strategic Plans, which initiatives were delayed due to COVID-19. 3. Provide strategic leadership regarding economic development initiatives. 4. Continue to support the development of natural gas distribution to the Municipality. 5. Finalize the Official Plan review 6. Continue support for the physician recruitment and retention program. 7. Continue to lobby the Ontario government for post-secondary training opportunities available locally. 8. Continue to support our residents, businesses and staff through the COVID-19 Pandemic.
Council Budget Summary
2021 Draft
Council 2020 Budget $ Variance % Variance
Budget
Revenue
Council $ - $ - $ - $ -
Physician Recruitment $ 37,000 $ 17,000 $ (20,000) (54%)
Total Revenue $ 37,000 $ 17,000 $ (20,000) (54%)
Expenses
Council $ 346,607 $ 344,296 $ (2,311) 1%
Physician Recruitment $ 141,025 $ 120,705 $ (20,320) 14%
Total Expenses $ 487,632 $ 465,001 $ (22,631) 5%
Surplus/(Deficit) $ (450,632) $ (448,001) $ 2,631 1%
Physician Recruitment budgeted operating revenues and expenses have decreased by
$20,000 (5%) due to one less physician incentive payment required in 2021.
The physician recruitment budget includes:
• 2 incentive payments of $20,000 each for existing physicians
• 2 incentive payments of $20,000 each for potential new physicians
• $41,000 for the physician recruitment contract (existing model)
• $17,000 financial contribution from Huron-KinlossCouncil Budget Summary
Council’s operating expenses primarily include:
• Wages and benefits of $264,000
• Travel, conferences and training totalling $35,000 (reduced by
$10,000 from 2020 due to Covid-19 and travel restrictions)
• $10,000 for the Integrity Commissioner
• $10,000 for memberships including AMO, Canadian Association
of Nuclear Hosts, and Great Lakes St. Lawrence Cities
• $5,000 dedicated to the Mayor’s budget for meeting expensesCAO Goals & Objectives
1. Administration:
a. Continue to implement the short-term goals identified by the Corporate and Economic
Development Strategic Planning process.
b. Work with senior leadership team to promote fiscal stability through budget analysis,
development of capital and asset management plans, infrastructure condition assessment
and cost recovery strategies for growth related infrastructure.
c. Continue to support the Physician Recruitment Plan and review incentive packages.
d. Build internal capacity to advance internal and external communications.
2. Human Resources:
a. Continue to analyze organizational effectiveness, including a review of the organizational
structure to ensure the municipality is positioned to meet the future needs of a growing
community.
b. Investigate best practices for staff developmnet and succession planning to retain talent and
knowledge.
c. Develop governance documents including well-defined job descriptions, responsibilties and a
clear goal-setting process for Staff and Departments.
d. Update policies and processes to ensure a positive workplace culture and employee
performance management.
e. Create a culture for employee engagement and leadership development.CAO Goals & Objectives
3) Economic Development:
a. Continue support of the Nuclear Economic Development and Innovation
Initiative, working with Bruce Power and Bruce County to locate and retain
nuclear supply chain businesses in the Municipality of Kincardine.
b. Continue to support growth-related infrastructure projects to service new
employment lands.
c. Work to attract a variety of developments, including affordable housing, to meet
the diverse needs of the community.
d. Advance goals and initiatives outlined in the Economic Development Strategic
Plan.
e. Continue to develop lifestyle and community profile marketing.CAO Budget Summary
2021 Draft %
CAO & Economic Development 2020 Budget $ Variance
Budget Variance
Revenue
Administration $ 26,707 $ 5,623 $ (21,084) -79%
Human Resources $ - $ - $ - 0%
Health & Safety $ - $ 15,000 $ 15,000 100%
BIA $ 78,950 $ 78,950 $ - 0%
Total Revenue $ 105,657 $ 99,573 $ (6,084) (6%)
Expenses
Administration $ 307,503 $ 309,700 $ 2,197 (1%)
Human Resources $ 197,698 $ 261,760 $ 64,062 (32%)
Health & Safety $ 33,649 $ 22,300 $ (11,349) 34%
BIA $ 78,950 $ 78,950 $ - 0%
Economic Development $ 255,485 $ 260,456 $ 4,971 (2%)
Total Expenses $ 873,285 $ 933,166 $ 59,881 (7%)
Surplus/(Deficit) $ (767,628) $ (833,593) $ (65,965) (9%)
Operating revenues for the CAO and Economic Development are budgeted to
decrease by $6,000 (6%), and expenses are budgeted to increase by $60,000 (7%).CAO Budget Summary Administration: The decrease in CAO revenues of $21,000 (79%) is primarily due to the $27,000 contribution to the Municipal Innovation Council (MIC), which in 2020 was offset by the one-time Provincial modernization grant funding. The remaining grant funding of $5,600 will be applied against the $27,000 MIC 2021 costs. The operating expenses are overall comparable to 2021 and include $10,000 for Digital Strategy process mapping, and Communications. Human Resources: H/R expenses are higher by $64,000 (32%) due an increase in human resource-related legal and professional fees ($27,000) and recruitment expenses ($40,000). Health & Safety: Expenses are budgeted to decrease by $11,000 (34%) primarily due to wages for the part-time contract position that was hired in 2020 to address key issues and recommendation arising from the Health & Safety audit. The responsibility of Health & Safety now falls under the Manager, Human Resources. The 2021 budget includes $12,000 for joint health and safety training , and mental health initiatives. This is offset by a $15,000 reserve fund contribution from the Workplace Insurance Reserve Fund 17.
CAO Budget Summary
BIA: The Business Improvement Area (BIA) Committee has recommended no change to
its 2021 tax levy of $78,950.
Economic Development: The economic development budget has increased by $5,000
(2%) and includes the following costs:
• $50,000 for a new Community Improvement Plan (CIP)
• $25,000 for new murals and diversity initiatives
• $15,000 for marketing and promotional material, including Kincardine After
Dark
• $11,000 for various software contacts, including Bang the Table, Adobe
Photoshop, and Hootsuite
• $9,000 for the CEDC, workforce & development forums, workshops, and other
partner eventsTreasury Department
Treasury Goals & Objectives
1) Continue work on the implementation of the Asset Management Plan (AMP) in order to ensure
compliance with Ontario Regulation 588/17, including:
• Establishing proposed levels of service for each asset category
• Finalizing a financial strategy on asset replacement
• Final adoption of Asset Management Plan
2) Finalize the implementation of FMW budgeting software for the Fund Manager module, which will
improve the accuracy of reserve fund tracking by eliminating excel spreadsheets and further
automating the budget process.
3) Continued optimization of Information Technology solutions, including Disaster Recovery
and Business Continuity, policy and governance, network services, and other opportunities
identified in the Digital Strategy report.Treasury Budget Summary
2021 Draft
Treasury 2020 Budget $ Variance % Variance
Budget
Revenue
General Government $ 2,705,500 $ 3,047,300 $ 341,800 13%
Treasury $ 141,050 $ 126,550 $ (14,500) -10%
Total Revenue $ 2,846,550 $ 3,173,850 $ 327,300 11%
Expenses
General Government $ 4,840,948 $ 5,337,413 $ 496,465 (10%)
Treasury $ 840,557 $ 851,447 $ 10,890 (1%)
Information Technology $ 202,658 $ 230,903 $ 28,245 (14%)
Total Expenses $ 5,884,163 $ 6,419,763 $ 535,600 (9%)
Surplus/(Deficit) $ (3,037,613) $ (3,245,913) $ (208,300) (7%)
Revenues are budgeted to increase by $327,000 (11%), while operating expenses are budgeted
to increase by $536,000 (9%).Treasury Budget Summary General Government: • Reduction to 2021 OMPF allocation by $48,200 (4%) over 2020 to $1,144,200 • Budget includes a $385,000 contribution from the Tax Mitigation Reserve Fund, thereby depleting this fund almost entirely. This equates to a direct reduction to the tax rate of 2.36% • Transfer to the Lifecycle Reserve Fund of $3.81 million, which is a 3% increase over the prior year by $480,000. • Budget includes a transfer of $130,000 towards the repayment of the internal loan for the OPF servicing project. Treasury: Revenues have decreased by $14,500 (10%) while expenses have increased by $11,000 (1%). The revenue decrease is primarily due to adjustments made to various fee revenue estimates including arrears notice fees, ownership changes, and tax reprint fees. Expense increases are attributed to wages and benefits ($18,000), offset by decreases to the travel and conferences budget.
Treasury Budget Summary
Information Technology:
The IT budget has been estimated to increase by $28,000 (14%) over the prior year. The IT budget addresses
the following requirements:
• Desktops/Laptops/Peripherals to replace end of life equipment
• Technology enhancement for Public Works field crews to support Road Patrol/CityWorks/GIS and
decrease duplication of work.
• Software and hosting contracts, including web hosting, the Kincardine mobile app, interactive Rec guide,
antivirus software, remote support software, backup/disaster recovery, spam filtering, and firewalls.
• Enhancement for support request tracking through implementation of a web-based support
management software.
• $8,700 for the cyber risk insurance policy
• Replacement of end of life network technology that no longer meets industry standard for network
accessibility and security
• Network enhancements for Parks and Rec, Tiverton Arena, and the MAC.
• Stocking of user-replaceable and consumable items to provide faster support turnaround and decrease
technology-based productivity loss.Police Services Budget Summary
2021 Draft
Policing Services 2020 Budget $ Variance % Variance
Budget
Revenue
Police Services Board $ 3,133 $ 3,133 $ - 0%
Policing $ 53,267 $ 53,267 $ - 0%
Community Safety & Policing $ 26,250 $ 26,250 $ - 0%
Total Revenue $ 82,650 $ 82,650 $ - 0%
Expenses
Police Services Board $ 17,982 $ 13,776 $ (4,206) 23%
Policing $ 2,377,600 $ 2,310,800 $ (66,800) 3%
Community Safety & Policing $ 26,250 $ 31,250 $ 5,000 (19%)
Total Expenses $ 2,421,832 $ 2,355,826 $ (66,006) 3%
Surplus/(Deficit) $ (2,339,182) $ (2,273,176) $ 66,006 3%
For 2021, the total cost per property is $361.38, which is a decrease of $4.14 (1.1%) over 2020. With a property
count of 6,562 (household, commercial and industrial), this amounts to a total cost of $2.371 million. The 2019
year-end adjustment amounts to $72,000, for a total net estimated cost of $2.299 million for 2021. The overall
decrease in the policing contract is $66,800 (2.8%).
The 2021 operating budget also includes grant revenue and program costs for the Community Safety and Policing
(CSP) Grant. This program is cost neutral, with no overall impact on the tax rate.
The 2021 budget also includes $5,000 for the Community Safety & Well-Being Plan. This is a provincially-mandated
program and the Municipality is working jointly with the County on this initiative.Treasury
Capital Budget Highlights
The Capital Budget includes the following projects for the Treasury Department:
• $25,000 Failover Server and Offsite BackupClerk’s Department
Clerk’s Goals & Objectives
1) Foster relationship building to support strong sense of community and its well-being
• Development of initiatives for building Indigenous Relations
• Engage and collaborate with other groups/stakeholders
• Creation of videos to highlight accessible features in the Municipality
• Implement crosswalk painting policy to allow recognition of celebration of local
groups/organizations
2) Ensure awareness and preservation of the Municipality’s heritage and history
• Completion of Heritage Conservation District Plan
• Arts, culture and heritage asset/cultural mapping
3) Expand and nurture tourism initiatives
• Development of winter promotional materials ie. videos, photos to strengthen awareness of the
season and activities to include winter getaway packages and contesting
• Implement mural program and policy
• Tourism pop-up shops at various locations throughout the Municipality
• Production of art banner brochures which will provide details on the involved artists
• Roll-out of Special Events enhancementsClerk’s Budget Summary
2021 Draft
Clerk & Tourism 2020 Budget $ Variance % Variance
Budget
Revenue
Clerk $ 18,360 $ 24,840 $ 6,480 35%
Heritage Kincardine $ 1,000 $ 200 $ (800) -80%
Tourism $ 30,500 $ 29,950 $ (550) -2%
Total Revenue $ 49,860 $ 54,990 $ 5,130 10%
Expenses
Clerk $ 426,058 $ 467,158 $ 41,100 (10%)
Election $ 16,800 $ 16,800 $ - 0%
Accessibility $ 3,000 $ 3,000 $ - 0%
Arts, Culture & Heritage $ 7,250 $ 8,500 $ 1,250 (17%)
Heritage Kincardine $ 8,450 $ 8,450 $ - 0%
Grants to Organizations $ 75,000 $ 75,000 $ - 0%
Tourism $ 330,873 $ 344,384 $ 13,511 (4%)
Total Expenses $ 867,431 $ 923,292 $ 55,861 (6%)
Surplus/(Deficit) $ (817,571) $ (868,302) $ (50,731) (6%)
Revenues are budgeted to increase by $5,000 (10%), while operating expenses are budgeted
to increase by $56,000 (6%).Clerk’s Budget Summary
Clerk’s Department:
• Provincial funding of $9,400 has been awarded under the Ontario Job Creation Program. This
funding will be used to create 2 contract positions (Heritage Photo Collection Specialist, and
Cultural Mapping and Promotion Coordinator) for a 42-week period. These costs and the
offsetting grant have been budgeted within the Clerk’s department accounts.
• Lottery and raffle licence fee revenue has been decreased by $3,000 (60%) to account for
Covid-19
• Software fees have been budgeted to increase by $6,000 for the addition of new users for the
electronic records storage program (Laserfishe)
• The remaining cost increases are primarily due to wages and benefits ($24,000)
Grants to Organizations:
The total grant allotment in 2021 amounts to $75,000, which is consistent with the prior year. The
2021 grants budget includes:
• $60,000 for Community Investment Grants
• $5,000 for the Kincardine Community Fund (KCF), and $5,000 for the KCF Committee to use
as promotional expenses
• $5,000 to the Bruce County Museum towards the storage of municipal archives (until 2023)Clerk’s Budget Summary
Tourism:
Tourism expenses are budgeted to increase by $13,000 (4%). This is mainly due to an
anticipated rent increase for the Visitor Information Centre of $6,000. The lease term ends in
April 2021 and staff will be investigating alternate lease options.
The Tourism budget also includes the following programs and initiatives:
• Advertising and promotional costs of $35,000
• Pipe Band Parades and Phantom Piper ($12,500)
• Grants to 3 festivals – Kincardine Scottish Festival, Kincardine Summer Music Festival,
and the Lighthouse Blues Festival ($9,000)
• Other municipal events including Cruise Night ($3,000), Canada Day ($21,500), mural
painting ($7,000), seasonal decorations ($16,000), Tall Ships ($6,000), and the Teddy
Bear Parade ($2,750)Clerk
Capital Budget Highlights
The Capital Budget includes the following projects for the Clerk’s Department:
• $150,000 Updates to Council Chambers (Electronic Meetings)Parks & Recreation
Parks & Recreation
Goals & Objectives
1) Implement the facility booking module of our Active Net recreation program software for
Parks & Recreation facilities.
2) Work with the Connaught Park Revitalization Committee to develop a phased-in plan for
future upgrades to Connaught Park.
3) Implementation of Recreation Financial Assistance Program.
4) Complete the Ammonia Refrigeration Project at the Davidson Centre.
5) Convert the Davidson Centre from Propane to Natural Gas and investigate the
conversion of other facilities
6) Work with stakeholders and the Accessibility Advisory Committee to design and
construct a new gazebo in Victoria Park.
7) Work with a Landscape Architect to design the layout of picnic shelters, band shells, etc
in a phased-in financially feasible approach for Dunsmoor and Reunion Park.Parks & Recreation
Budget Summary
2021 Draft
Parks & Recreation 2020 Budget $ Variance % Variance
Budget
Revenue
Parks $ 61,205 $ 54,805 $ (6,400) -10%
Recreation $ 795,940 $ 659,640 $ (136,300) -17%
Facilities $ 785,637 $ 626,432 $ (159,205) -20%
Total Revenue $ 1,642,782 $ 1,340,877 $ (301,905) (18%)
Expenses
Parks $ 896,135 $ 972,016 $ 75,881 (8%)
Recreation $ 1,121,235 $ 1,030,485 $ (90,750) 8%
Facilities $ 2,416,234 $ 2,464,896 $ 48,662 (2%)
Total Expenses $ 4,433,604 $ 4,467,397 $ 33,793 (1%)
Surplus/(Deficit) $ (2,790,822) $ (3,126,520) $ (335,698) (12%)
Total Parks and Recreation revenues are budgeted to decrease by $302,000 (18%), while expenses have
been budgeted to increase by $34,000 (1%). The majority of these changes are primarily due to the
forecasted impact of the Covid-19 pandemic on recreation programming and end-user participation.
Generally, staff is projecting a decrease in revenue of 25% for programming including swimming lessons,
summer and March Break day camps, fitness programs, etc. The revenue reduction has also been
projected for ice rentals, gymnasium and room rentals, and the health club. The costs associated with
delivering recreation services have not been reduced, and instead may have increased due to
maintaining minimum staffing levels.Parks & Recreation
Budget Summary
Parks: The Parks budget includes municipal parks and beaches, including Connaught Park,
Reunion Park, Bluewater Trailer Park, as well as horticulture and the Environmental Committee.
Revenues: Revenues for parks primarily includes lease revenue generated from the Bluewater
Trailer Park in the amount of $33,000. The budget also includes $9,000 in user fees for use of the
Connaught Park ball diamonds and $4,200 for Kincardine Minor Soccer. An offsetting decrease of
$5,500 has been included for the sale of green cones by the Environmental Committee which did
not materialize.
Expenses: Parks expenses have increased by $76,000 (8%). Of this increase, $57,000 (76%)
relates to wages and benefits. The parks operating budget also includes:
• $10,000 for additional safety signage at the beach
• $30,000 for phragmites eradication
• $8,000 for Covid materials, including sanitizer, masks and disinfectant
• $15,000 in required repair costs for a truck that is transferred from Public Works to the
Parks department
• $143,000 for grounds maintenance costs, beach maintenance, and grass cutting
• The Environmental Committee operating budget includes $3,500 for administration costs, as
well as $6,000 for the purchase of a water bottle filling station.Parks & Recreation
Budget Summary
Recreation:
The recreation budget consists of the various programs offered by the Municipality such as day camp,
swimming lessons, archery, and kindergym. The budget also includes the Kincardine Marina, the
splashpad, the Recreational Financial Assistance Program, and general administration costs.
Recreation revenues are projected to decrease by $136,000 (17%), mainly due to the indirect
implications of the Covid-19 pandemic. Staff have budgeted for a 25% decrease in registration
revenues due to decreased participation. While recreation expenses show a decrease of $91,000,
$63,000 (69%) of this is attributed to the Marina which is a self-sustaining budget. Therefore, the
budgeted cost decrease is $28,000 (2.5%) net of Marina costs.
Facilities:
Recreation facilities include the Davidson Centre, Tiverton Arena, Brucedale Community Centre,
Whitney Crawford Community Centre, Tiverton Lions Hall, and the Arts Centre. The operating expenses
for all recreation facilities have increased by $49,000 (2%) over the prior year’s budget, while
revenues have decreased by $159,000 (20%). The revenue decrease is primarily due to the indirect
impact of Covid-19 and the reduction in rental revenues for the arena, gymnasium, pool and health
club.Parks & Recreation
Budget Summary
• Arts Centre: The Arts Facility typically generates annual revenues of $16,000 from the various tenants
renting the facility, including Bluewater Summer Playhouse, Kincardine Scottish Festival, Kincardine
Theatre Guild, Kincardine Artists, and the Grey Bruce Woodturners Guild. Rental income has been
budgeted to reduce by $6,420 to account for rent “forgiveness” that may be required if the pandemic
continues into 2021. Operating expenses are budgeted at $108,000 and consists primarily of staff
wages to maintain the facility, heating costs, insurance, and building maintenance.
• Tiverton Sports Centre: The Tiverton Sports Centre is forecasted to generate $111,000 in revenues for
2021, primarily for arena rentals. This represents a decrease of $20,000 (25%) to account for the
impact of the pandemic and fewer adults participating in hockey leagues. Operating costs for 2021 are
budgeted at $265,000 and have increased by $9,000 (4%). The majority of this increase is for the
purchase of Covid materials including disinfectant, masks, shields, and sanitizer.
• Davidson Centre: Operating revenues at the Davidson Centre are budgeted to decrease by $132,000
(21%), while operating expenses are budgeted to increase by $39,000 (2%). Of the total revenues of
$506,000, $153,000 (30%) are generated from the arena, $120,000 (24%) are for the health club,
and $106,000 (20%) are from the pool.
Operating expenses for the Davidson Centre include a $50,000 reserve fund contribution for future
pool upgrades.Parks & Recreation
Budget Summary
The net cost of providing each recreation program/service is summarized below to illustrate the Covid-19
related impact based on budgetary estimates:
2020 Budget 2021 Budget
Recreation Programs & Facilities $ Change % Change
Surplus/(Deficit) Surplus/(Deficit)
Summer Day Camp $ (37,623) $ (71,483) $ (33,860) 90%
Children's Swim Lessons $ (3,525) $ (35,841) $ (32,316) 917%
Tiverton S.C. Arena Rentals $ (124,818) $ (153,509) $ (28,691) 23%
DC Room Rentals $ (62,820) $ (75,821) $ (13,001) 21%
DC Gymnasium Rentals $ (35,560) $ (44,752) $ (9,192) 26%
DC Arena Rentals $ (166,588) $ (220,561) $ (53,973) 32%
DC Pool $ (576,759) $ (598,641) $ (21,882) 4%
Health Club $ 55,281 $ 19,113 $ (36,168) -65%
Total $ (952,412) $ (1,181,495) $ (229,083) 24%
It is important to recognize that the draft budget was determined based on assumptions and information
known at the time of developing the budget. While efforts have been made to attempt to forecast the
impacts of Covid-19, actual revenues and expense may deviate significantly.Parks & Recreation
Capital Budget Highlights
The Capital Budget includes the following projects for Parks & Recreation:
• $155,000 Replacement of Victoria Park Gazebo
• $110,000 Boardwalk Replacement
• $ 85,000 Repair Harbour Retaining Wall
• $ 40,000 Landscape Architect Study for Dunsmoor and Reunion Parks
• $ 40,000 Replace 2520 tractor
• $ 40,000 New bleachers
• $ 30,000 Conversion of Davidson Centre to natural gas
• $ 20,000 Pool HVAC unitFire & Emergency Services
Fire & Emergency Services
Goals & Objectives
The Strategic Goals of the Fire Department are to provide Fire Protection Services through a range of
programs, supported by Council, that are designated to protect the lives and property of residents from
the adverse effects of:
a) Structural and wildland fires;
b) Exposures to dangerous conditions created by man or nature;
c) Rescues from motor vehicle collisions, farm incidents, industrial accidents and building
collapse;
d) Tiered response for cardiac arrest, vital signs absent (VSA) and unconsciousness;
e) Rescues involving the use of specialized rope rescue equipment and procedures;
f) Rescues involving water and ice (level one-shore based);
g) Emergencies involving hazardous materials; and
h) Rescues involving confined space entrapment
These range of services are provided first to residents of the Municipality; second to those municipalities
requiring assistance through authorized emergency fire service plans and programs (mutual aid,
automatic aid and other fire service agreements).
The KFES makes every effort to provide accessibility services to all citizens in order to accommodate all
disabilities.Fire & Emergency Services
Budget Summary
2021 Draft
Fire & Emergency Services 2020 Budget $ Variance % Variance
Budget
Revenue
Fire Department $ 18,800 $ 35,800 $ 17,000 90%
Emergency Planning $ 152,337 $ 138,869 $ (13,468) -9%
Covid-19 Pandemic $ - $ 105,900 $ 105,900 100%
Mysis $ 3,000 $ 3,000 $ - 0%
Total Revenue $ 174,137 $ 283,569 $ 109,432 63%
Expenses
Fire Department $ 1,013,529 $ 1,317,488 $ 303,959 30%
Emergency Planning $ 210,045 $ 183,103 $ (26,942) -13%
Covid-19 Pandemic $ - $ 30,000 $ 30,000 100%
Mysis $ 10,200 $ 19,000 $ 8,800 86%
Total Expenses $ 1,233,774 $ 1,549,591 $ 315,817 (26%)
Surplus/(Deficit) $ (1,059,637) $ (1,266,022) $ (206,385) (19%)
Revenues are budgeted to increase by $109,000 (63%) while operating expenses are budgeted to
increase by $316,000 (26%). However, these figures include costs associated with Covid-19 and related
grant revenue offsets. The revenue amount of $105,900 represents carry-forward unspent funds from the
Phase 1 Safe Restart grant, which will be used to offset Covid-19 related costs in the 2021 operating
budget. These costs are recorded partially under the Fire & Emergency Services budget of $30,000, with
remaining costs of $75,900 recorded in various departments across the municipal budget.Fire & Emergency Services
Budget Summary
Revenues:
• The increase of $17,000 in the Fire budget is attributed to a $15,000 increase in burn permit
revenues due to both fee increases and the introduction of burn permit online services.
• The Emergency Planning budget includes a decrease in revenue of $13,000. This revenue represents
cost-recovery for the Sirens Maintenance contract from Bruce Power as per the agreement.
Expenses:
• The operating expenses for the Fire Department are budgeted to increase by $304,000 (30%). Of this
increase, $174,000 (57%) is due to wages and benefits. Also, an additional $18,000 ($30,000 total)
has been budgeted for increased training and recertifications that are required every 5 years. The
budget also includes $26,000 for the purchase of new truck tires.
• The operating budget includes a transfer to the Fire Equipment Reserve Fund for $100,000 in order to
begin establishing a fund for future capital replacement of the fire vehicles.
• The Emergency Planning budget is budgeted to decrease by $27,000 (13%), which is mainly due to a
decrease in sirens maintenance costs resulting from entering into a contractual agreement. The
budget has also been reduced by $10,000 for one-time costs incurred in 2020 for the relocation of
the EOC to the Municipal Administration Centre.
• The Mysis budget has increased by $8,800 (86%) for repairs to the storage building and the boat,
training, and a new Personal Floatation Device.Fire & Emergency Services
Capital Budget Highlights
The Capital Budget includes the following projects for Fire & Emergency Services:
• $425,000 Rescue Truck Replacement (Tiverton Station)
• $ 15,000 Women’s Facilities Upgrades
• $ 13,500 Kincardine Fire Station Bay Doors
• $ 12,000 Porta tank and potable pump
• $ 10,000 Fire Stations upgrade for natural gas conversionPublic Works
Public Works
Goals & Objectives
1) Implement CITYWORKS AMS and Storeroom modules with other departments throughout the
municipality.
2) Advance CITYWORKS within Public Works to better manage workloads, scheduling of routine
tasks and resources within the department.
3) Look at opportunities for operations layout and replacement facility options for the public
works garages.
4) Continue to manage existing and new assets with an overall lifecycle management approach.
5) Continue with support of development proposals, natural gas, and infrastructure upgrades.
6) Consider implementing recommendations from the Master Cycling Plan.
7) Complete on-going capital works from 2020 and new considerations for 2021 including the
KIPP trail project.Public Works
Budget Summary
2021 Draft
Public Works 2020 Budget $ Variance % Variance
Budget
Revenue
Water $ 3,011,820 $ 3,092,248 $ 80,428 3%
Wastewater $ 2,555,402 $ 2,623,903 $ 68,501 3%
Roads $ 46,900 $ 62,800 $ 15,900 34%
Bridges, Culverts, Storm $ 36,122 $ 36,122 $ - 0%
Fleet $ 20,800 $ 20,800 $ - 0%
Waste Management $ 887,750 $ 932,750 $ 45,000 5%
Cemeteries $ 136,200 $ 133,200 $ (3,000) -2%
Trails $ 2,000 $ - $ (2,000) -100%
Airport $ 86,000 $ 84,300 $ (1,700) -2%
Total Revenue $ 6,782,994 $ 6,986,123 $ 203,129 3%
Expenses
Water $ 3,011,820 $ 3,092,248 $ 80,428 3%
Wastewater $ 2,555,402 $ 2,623,903 $ 68,501 3%
Roads $ 3,608,479 $ 3,812,315 $ 203,836 6%
Bridges, Culverts, Storm $ 512,183 $ 504,809 $ (7,374) -1%
Fleet $ 970,563 $ 889,368 $ (81,195) 8%
Waste Management $ 1,528,077 $ 1,509,874 $ (18,203) 1%
Cemeteries $ 246,206 $ 266,392 $ 20,186 (8%)
Trails $ 39,170 $ 41,309 $ 2,139 (5%)
Airport $ 316,292 $ 312,482 $ (3,810) 1%
GIS $ 106,553 $ 109,421 $ 2,868 (3%)
Total Expenses $ 12,894,745 $ 13,162,121 $ 267,376 (2%)
Surplus/(Deficit) $ (6,111,751) $ (6,175,998) $ (64,247) (1%)Public Works
Budget Summary
Summary of Details:
Revenues are budgeted to increase by $203,000 (3%), while total expenses are budgeted to increase by
$267,000 (2%). Of this total expenditure increase, $45,500 (17%) is attributed to wages and benefits, and a
further $40,000 (15%) is for Emergency Lakeshore Road Repairs. The departmental details are discussed in
further detail below.
Water:
Effective January 1, 2021, all water customers in the municipality will be charged the same water rates regardless
of whether they are on the Tiverton or Kincardine municipal water system. As a result, the 2021 operating budget
combines both the Tiverton and Kincardine water accounts under one group of accounts. This means that
revenues and expenses will no longer be tracked and recorded separately for each system.
• Expenses, excluding reserve fund transfers, are projected to decrease by $45,000 (3%). The primary reason
for the decrease is due to fewer consulting expenses required in 2021. The prior year’s budget included
$13,000 for the Water Financial Plan, $20,000 for well inspections, $7,000 for the DWQMS audit, and
$5,000 for the Tiverton PTTW Hydrogeological Study.
• Total water reserve fund transfers to the Kincardine and BEC water reserve funds amount to $1,313,500,
which is an increase of $129,000 (12%) over the prior year.Public Works
Budget Summary
Wastewater:
The operating expenses for the wastewater budget are budgeted to increase by $22,000 (2%), net of reserve
fund transfers. Of this increase, $9,000 (41%) is attributed to wages and benefits, and $3,000 (14%) is due to
Covid materials and supplies. In addition, $10,000 has been included for sewer use by-law enforcement.
There is an offsetting decrease of $7,000 that was incurred in the prior year for the Financial Plan.
Roads: The Roads budget includes such costs as winter maintenance (salt, sand, snow clearing, etc.),
streetlighting, SMART, grass cutting, tree planting, Emerald Ash Borer, ditching, loosetop and hardtop
maintenance, crack sealing, and road signs.
The operating budget for roads has increased by $204,000 (6%) over 2020. Of this total increase, $46,000
(23%) is attributed to wages and benefits. Other budgetary changes are due to the following:
• Purchases of sand are budgeted to increase by $20,000 (30%) from $70,000 to $90,000; impacts due
to freeze thaw cycles.
• Tree purchases under the Emerald Ash Borer program are budgeted to increase by $25,000 (100%) and
moved to operating from capital planning.
• Traffic calming costs of $7,000 to purchase in road warning flexible signage to improve pedestrian safety.
• $10,000 has been included for repair costs of the W1 shop floor.
• Software costs are budgeted to increase by $20,000 (85%) due to the Cityworks licences moving to an
Enterprise license agreement (indefinite number of user logins), which is required in order to advance the
program throughout municipal departments.Public Works
Budget Summary
• A budget of $40,000 has been established for emergency Lakeshore Road Repairs. In 2020 we incurred over
$70,000 in unbudgeted emergency shoreline repairs due to high water levels. This fund has been created to
manage ongoing challenges due to the high water levels to protect the Municipalities assets.
• $10,000 has been included in the budget for a Facilities design report to initiate a review of the public works
garages and to consider a path forward for upgrades, expansion or replacement of the facilities. Our facilities
are undersized, outdated and maintenance costs are increasing.
Bridges, Culverts, Storm: This budget includes bridges, culverts, stormwater, and municipal drains. Total operating
costs are projected to decrease by $7,000 (2%). The budget includes OSIM Bridge inspection and pedestrian
structure inspection costs of $28,300. This is offset by a reduction to general contracting costs of $20,000, and a
reduction in loan repayment costs of $11,000.
Fleet: The operating budget for the mechanic and fleet has decreased by $81,000 (8%). The majority of this
decrease is for an adjustment to fuel and diesel purchases, which have been reduced by $57,000 (20%) over the
prior year to better reflect our five-year average and actuals. There was also $54,000 budgeted in 2020 for
significant repairs on several pieces of equipment which has been reduced to $32,000 in 2021. A further $9,000
decrease can be attributed to wages/benefits.
The budget also includes a reserve fund contribution of $100,000 to the Fleet Reserve Fund. This is required in
order to address increasing costs associated with aging fleet and equipment, and to continue to improve on
preventative maintenance initiatives. To sustain a fleet replacement program approximately $800,000 is required
annually for Public Works Fleet.Public Works
Budget Summary
Waste Management: The waste management budget consists of garbage collection and recycling, the
Kincardine Waste Management Center, and the leachate treatment facility. Total budgeted revenues have
increased by $45,000 (5%) while expenses have decreased by $18,000 (1%).
The majority of the expense decrease is attributed to wages and benefits, amounting to $42,000. The
offsetting increases include the addition of $5,000 for the EPS Styrofoam program, $10,000 for landfill PILs,
$15,000 for the installation of site fencing, and $10,000 to complete a new well installation.
The budget for bag tag revenues has been increased by $48,000 (13%) to account for higher volumes of bag
tag sales.
The operating budget also includes a $100,000 transfer to the Landfill Reserve Fund for future cell
replacement.
Cemeteries: The operating budget for cemeteries has increased by $20,000 (8%) over the prior year and
consists of the following:
• An increase in wages and benefits of $19,000 (13%)
• The Lovat cemetery has requested funding of $1,450 for lawn maintenance costs. Consistent with the
prior year, these requests are included in the municipal budgeting process.Public Works
Budget Summary
Trails:
The trails operating expenses in 2021 amount to $41,000 and is overall comparable to the prior year. Costs
include staff wages and benefits, materials, printing and advertising.
Airport:
The airport operating expenses in 2021 amount to $312,000 and is overall comparable to the prior year. The
budget includes $11,000 for grass cutting contracts, as this activity is no longer being maintained by
municipal staff which results in a savings to the municipal budget.
GIS:
The total GIS budget for 2021 amounts to $109,000 and is comparable to the prior year. The budget
primarily includes staff wages and benefits and training expenses.Public Works
Capital Budget Highlights
The Capital Budget includes the following notable projects for Public Works (> $100,000):
• $3,545,000 Reconstruction of Durham St., Lambton St. and Saugeen St.
• $2,400,000 Water and sanitary servicing for properties along Lake St. North
• $1,465,000 KIPP Trail
• $1,500,000 Reconstruction of Maple St.
• $660,000 Bervie Sideroad repaving
• $525,000 McLeod Avenue watermain replacement
• $525,000 Highland Drive watermain replacement
• $425,000 Replacement of Rescue Truck (Tiverton Station)
• $325,000 Replacement of Tandem Plow/Sander
• $300,000 Construction of 2nd half of Cell #2 (KWMC)
• $275,000 Sunset Shoreline Erosion protection
• $180,000 Trackless Sidewalk unit
• $140,000 Paving main entrance of Waste Management Centre
• $114.000 Reconstruction of Queen St. (engineering)
• $100,000 Kiosk fuel system upgrade (Airport)Building & Planning
Building & Planning
Goals & Objectives
1) Receive final approval for the 5-year review of the Official Plan to be consistent with the Provincial Policy
Statement, including an amendment to the Official Plan with regards to the Significant Woodlands
2) Initiate the Municipal Comprehensive Zoning Review to be consistent with the new Official Plan.
3) Implement a software system that will allow for online permit submission and permit tracking for the public.
Software will also incorporate the application of digital plans review and mobile GIS inspection system for
Building & Planning Department and By-law.
4) Complete the Development Charges Study and establish a By-law for the Municipality of Kincardine to be
implemented July 2021
5) Continue to Update and consolidate by-laws- including Site Plan Control, Signs, Animals on Beach By-laws etc.
6) Complete the digitization of files and transition to an electronic filing system for the entire building
department.
7) Stair replacement between Huron Terrace and the Lighthouse in conjunction with the retaining wall at the
Harbour area.Building & Planning
Operating Budget Summary
2021 Draft
Building & Planning 2020 Budget $ Variance % Variance
Budget
Revenue
Building Department $ 422,000 $ 423,619 $ 1,619 0%
Planning Department $ 78,620 $ 225,620 $ 147,000 187%
By-Law Enforcement $ 21,050 $ 23,550 $ 2,500 12%
Buildings $ 474,173 $ 427,220 $ (46,953) -10%
Total Revenue $ 995,843 $ 1,100,009 $ 104,166 10%
Expenses
Building Department $ 422,000 $ 423,619 $ 1,619 0%
Planning Department $ 692,723 $ 709,435 $ 16,712 2%
By-Law Enforcement $ 115,356 $ 122,680 $ 7,324 6%
Buildings $ 1,075,659 $ 1,057,603 $ (18,056) -2%
Total Expenses $ 2,305,738 $ 2,313,337 $ 7,599 (0%)
Surplus/(Deficit) $ (1,309,895) $ (1,213,328) $ 96,567 7%
Revenues are budgeted to increase by $104,000 (10%), while expenses are budgeted to
increase by $8,000 (0%).Building & Planning
Operating Budget Summary
Building Department:
• Building Department revenues show an increase of $1,600 over prior year, however this includes a
transfer from the Obligatory Reserve Funds to offset the estimated deficit in the Building Department
operating budget. In 2021, it is estimated that $107,000 will need to be transferred out of the
Obligatory RF. In the prior year, the budget included an $18,000 transfer out (expense) to the
Obligatory RF due to a projected budget surplus. The projected deficit is due to a decrease in building
permits expected in 2021, largely due to the Covid-19 pandemic.
• Building Department expenses include $14,000 for software that will allow for online permit
submission and permit tracking for the public.
Planning & Zoning:
• The Planning & Zoning revenues show an increase of $147,000 (226%) over prior year, however this is
due to a contribution from the Reserve to offset the costs of the Zoning By-law. The Zoning By-law was
funded in the 2020 budget, however due to delays associated with the Covid pandemic, the project
has not yet started. Unspent funds from 2020 will be placed in the Reserve and withdrawn in 2021.
• Planning expenses are projected to increase by $17,000 (2%) over the prior year, primarily due to the
completion of the Official Plan ($10,000 increase). The budget also includes an additional $15,000 for
the completion of the Municipal-wide Development Charges By-law.Building & Planning
Operating Budget Summary
By-Law Enforcement:
By-law enforcement costs are estimated to increase by $7,000 (6%) primarily due to wages and benefits, as
well as the inclusion of contracting costs required for property standards compliance which are fully
recoverable from the property owner.
Municipal Buildings:
Municipal Building revenues are projected to decrease by $42,000 (9%). This is due to a decrease in
estimated rent revenue from tenants at the MAC and the Underwood Community Centre. A reduction of
$25,000 is anticipated for the MAC, and $25,000 at Underwood due to the expiry of several lease agreements
that will not be renewed.
Some of the more significant operating expense changes for municipal buildings are as follows:
• Municipal Administration Centre (MAC): The operating expenses for the MAC have decreased by $9,000
(2%) due primarily to a decrease in elevator maintenance costs of $7,500.
• Locum Houses: The operating expenses for the locum houses are increasing by $13,000 for capital repairs
and upgrades that are required for these residences. This includes costs associated with natural gas
conversion, new showers, and roof replacement at the MacKendrick property. The roof replacement is
funded by a 50% contribution from the landlord, with all remaining capital costs funded by the
municipality’s Locum House Reserve Fund.Building & Planning
Operating Budget Summary
• Hawthorne Community Medical Clinic: Operating expenses at the medical clinic are budgeted to
decrease by $28,000 (15%). This is primarily due to a decrease in general contracting costs of
$20,000 for the retaining wall repairs that were completed in 2020.
Other municipal buildings include the Kincardine and Tiverton libraries, Armow Women’s Institute, the
Underwood Community Centre, and the Lighthouse. The budgeted expenses for these facilities remain
comparable to the prior year.Building & Planning
Capital Budget Highlights
The Capital Budget includes the following projects for Building & Planning:
• $225,500 Replacement of Lighthouse exterior stairs
• $ 30,000 Medical Clinic conversion to natural gasOperating Budget Variances
Operating Budget Variance Reconciliation
Comparison of 2021 and 2020 Budgets
% Tax Rate
Operating Budget Impact
Impact
Expenditures: Tax Funded User Funded Total
Reserve Fund Transfers $ 571,520 $ 177,586 $ 749,106 3.5%
Salaries $ 163,056 $ 26,212 $ 189,268 1.0%
Group Insurance Benefits/WSIB $ 153,827 $ 17,146 $ 170,973 0.9%
Covid Materials & Supplies $ 99,900 $ 6,000 $ 105,900 0.6%
Community Improvement Plan $ 50,000 $ - $ 50,000 0.3%
Recruitment $ 40,000 $ - $ 40,000 0.2%
Emergency Lakshore Road Repairs $ 40,000 $ - $ 40,000 0.2%
Building & Equip Mtce $ 39,400 $ 7,750 $ 47,150 0.2%
Legal Fees $ 29,000 $ - $ 29,000 0.2%
Software Contracts & Computer supplies $ 28,600 $ 14,000 $ 42,600 0.2%
Engineering $ 28,300 $ - $ 28,300 0.2%
Insurance $ 20,479 $ 4,008 $ 24,487 0.1%
Sand Purchases $ 20,000 $ - $ 20,000 0.1%
OPP Contract $ (66,800) $ - $ (66,800) -0.4%
Fuel, Oil, Diesel $ (102,094) $ - $ (102,094) -0.6%
Propane & Hydro $ (118,932) $ (47,352) $ (166,284) -0.7%
Expenditure Increase $ 996,256 $ 205,350 $ 1,201,606 6.1%
Revenues:
OMPF Funding $ 48,200 $ - $ 48,200 0.3%
Revenue from Assessment Growth $ (176,233) $ - $ (176,233) -1.1%
Bag Tag Sales $ (48,000) $ - $ (48,000) -0.3%
Rental Income $ 49,141 $ - $ 49,141 0.3%
Recreation Programs & Facilities $ 229,083 $ - $ 229,083 1.4%
Revenue Decrease $ 102,191 $ - $ 102,191 0.6%
Total Reconciled Tax-Funded Operating Budget increase $ 1,098,447
Total Tax-Funded Operating Budget increase per FMW $ 1,107,418
Difference $ (8,971)
Total tax-rate increase before mitigation 6.8%
To reduce the tax burden in 2021:
Covid-19 Remaining Grant Funding (Phase 1) $ (99,900)
Tax Mitigation RF Contribution $ (385,000)
Total revenue contribution $ (484,900)
Adjusted tax-funded Operating Budget increase $ 622,518
Revised Tax Rate Impact 3.8%Capital Budget
2021 Capital Projects
The total cost of all 2021 capital projects amounts to $12.654 million funded as follows:
Donations $30,000
Development Charges $100,000
Landfill RF $300,000
Contingency $412,000
Community Benefits RF $1,285,000
Grants & Dividend $1,902,626
Ratepayer Contributions $2,427,000
Funding Sources $2,703,000
Lifecycle RF
$3,494,374
$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,0002021 Capital Projects
The draft capital budget includes a withdrawal from the
Lifecycle Reserve Fund in the amount of $3.494 million
leaving a net contribution of only $316,000.
This results in an overall balance of available funds of
$3.25 million available to be used in 2022 and beyond.5-Year Capital Plan
2022 2023 2024 2025 2026
Treasury $ 130,000 $ 8,000 $ - $ - $ -
Clerk $ - $ 40,000 $ 15,000 $ - $ -
Public Works:
Water $ 5,091,000 $ 2,954,300 $ 1,576,500 $ 236,500 $ 1,741,700
Wastewater $ 3,223,250 $ 5,805,000 $ 495,500 $ 261,000 $ 1,434,450
Roads $ 6,395,450 $ 2,970,000 $ 2,620,000 $ 3,294,500 $ 4,840,850
Bridges, Culverts, Storm $ 3,240,000 $ 650,000 $ 1,485,000 $ 740,000 $ 405,000
Fleet $ 1,065,000 $ 1,085,000 $ 1,040,000 $ 660,000 $ 505,000
Waste Management $ - $ 400,000 $ 200,000 $ - $ -
Cemetery $ 70,000 $ 130,000 $ - $ - $ -
Trails $ 60,000 $ 60,000 $ 75,000 $ - $ -
Airport $ 91,500 $ 25,000 $ 650,000 $ - $ -
Total Public Works $ 19,236,200 $ 14,079,300 $ 8,142,000 $ 5,192,000 $ 8,927,000
Parks & Recreation:
Parks $ 495,000 $ 125,000 $ 200,000 $ - $ -
Recreation $ 7,375,000 $ 567,000 $ 1,033,000 $ - $ -
Total Parks & Recreation $ 7,870,000 $ 692,000 $ 1,233,000 $ - $ -
Building & Planning $ 100,000 $ 71,000 $ 165,000 $ 45,000 $ -
Fire & Emergency Services $ 850,000 $ 501,000 $ 1,800,000 $ 1,519,500 $ 66,000
Total C apital Departm ents $ 2 8 ,1 8 6 ,2 0 0 $ 1 5 ,3 9 1 ,3 0 0 $ 1 1 ,3 5 5 ,0 0 0 $ 6 ,7 5 6 ,5 0 0 $ 8 ,9 9 3 ,0 0 0Reserve Funds
Lifecycle Reserve Fund
$4.50
Millions
$4.00 $3.810
$3.50 $3.330
$2.880
$3.00
$2.460
$2.50
$2.020
$2.00
$1.630
$1.50 $0.935
$0.785
$1.00 $0.785
$0.50
$0.000
$0.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Budget
Total Budgeted Lifecycle Contributions from 2013 – 2020 = $14.825 millionReserve Fund Balance Trend
$40,000,000
Total $
Discretionary
Obligatory
$35,000,000
Reserves
Water/Sewer
Total
$30,000,000
$27.06 M
$25,000,000 Total $7.04 M Discretionary
$20.9 M
$20,000,000
$15,000,000
$10,000,000
$13 M Water/Sewer
$5,000,000
$0
2009201020112012201320142015201620172018201920202021
YearLifecycle Reserve Fund
$4.50
Millions
$4.00 $4.01M
$3.81M
$3.50 $3.33M
$3.25M
$2.88M $2.47M
$3.00
$2.46M
$2.50
$2.46M
$2.02M
$2.00
$1.673M
$1.50
$1.44M
$971K $942K
$1.00 $785K
$836K $917K
$0.50
$0.00
2014 2015 2016 2017 2018 2019 2020 2021
Annual Contributions Reserve Fund BalanceDebt & External Borrowing
Long Term Debt Commitments
The Municipality records all debt repayment amounts in the operating budget.
Total debt charges included in the 2021 operating budget is $1.222M and is
comprised of the following projects:
2021 Debt Outstanding Completion
Capital Project
Charges Balance Year
Queen St. Bridge Rehabilitation $ 168,000 $ 2,750,000 2041
Connaught Park Sewage Pumping Station $ 10,355 $ 1,090,000 2029
Municipal Administration Centre Renovations $ 200,700 $ 947,405 2025
LED Street Lighting Installation $ 134,500 $ 604,785 2025
Fire Rescue Vehicle $ 36,900 $ 156,190 2025
Tile Drain Debentures $ 51,887 $ 122,100 Various
Huron Terrace Sewage Pumping Station $ 522,850 $ 8,600,000 pending
9/21 Business Park Development $ 25,925 $ 4,250,000 pending
OPF Business Park Servicing $ 71,300 $ 1,033,000 pending
Total Debt Charges $ 1,222,417 $19,553,480Long Term Debt Outstanding per Capita
2021 2020 2019 2018 2017 2016 Average Median
Debt per Capita $ 1,414 $ 382 $ 185 $ 253 $ 313 $ 391 $ 715 $ 464
% Change 270% 107% -27% -19% -20% -13%
The 2020 BMA Municipal Study contains data for 110 participating municipalities to
allow for benchmarking and comparative analysis.
• 28% have population < 15,000
• 48% have population < 30,000
• Kincardine = $1,414
• Average = $715
• Median = $464Debt Outstanding as % Revenues
2021 2020 2019 Average Median
Own Source Revenues $ 30,306,599 $ 29,712,352 $ 29,129,757
Debt Outstanding $ 16,964,588 $ 4,580,480 $ 2,215,557
Debt Outstanding as % of Revenues 56.0% 15.4% 7.6% 37.9% 32.9%
• A measure that identifies the % of annual operating revenues that
would be required to retire the Municipality’s net debt
• Indicator used by credit rating agencies when assessing debt burden
• Debt Management Policy Target = < 55%
• Kincardine = 56%
• Average = 37.9%
• Median = 32.9%Debt Costs as % Revenues
2021 2020 Average Median
Debt Service Costs to Own Source Revenues 3.8% 1.5% 5.2% 4.6%
• Municipal Debt Management Policy establishes a maximum limit of 10%.
• Kincardine = 3.8%
• Average = 5.2%
• Median = 4.6%Debt Conclusion • Long-term borrowing capacity has been significantly impacted by the additional debt that was taken on in the 2020 budget • Weakening debt ratios in comparison to historical data, internal policies, and benchmarking • Interest rates remain low and may support the undertaking of additional debt, however large increases in future debt service costs will decrease the Municipality’s financial flexibility and may ultimately be too much debt for the community to absorb. • Debt should only be undertaken where necessary for critical high- priority projects. • The 2021 budget does not include the addition of new debt.
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