Body: Council Type: Document Meeting: Committee Date: January 7, 2013 Collection: Documents Municipality: Frontenac County
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Document Text
Finance Advisory Committee Agenda Date and Time
Monday, January 7 and Tuesday, January 8, 2013 at 10:00 a.m.
Place
County Administrative Office, 2069 Battersea Road, Glenburnie
Members: Deputy Warden Bud Clayton - Chair Councillor John McDougall
Councillor David Jones - Vice Chair Warden Janet Gutowski, Ex-Officio
Page 1.
Call to order
Adoption of the agenda
Disclosure of pecuniary interest and general nature thereof
Adoption of minutes
3-7
a)
Minutes of the meeting held October 15, 2012
Deputations and/or presentations
Communications
Reports referred from County Council
8-14
a)
Report 2013-010 Financial Services - Land Ambulance Vehicle Useful Life Adjustment (Referred from the October 17, 2012 County Council meeting)
15-20
b)
Report 2013-012 Human Resources - Non-Union Salary Adjustment Policy (Referred from the December 19, 2012 County Council meeting)
21-24
c)
Report 2013-009 Human Resources - Organizational Study Options (Referred from the December 19, 2012 County Council meeting)
Business
25-32
a)
Report 2013-003 Financial Services – 2013 Preliminary Budget
33-170
b)
2013 Draft Budget
171-180
c)
Report 2013-013 Financial Services – Reserve and Reserve Funds
Page 1 of 182
Page 8. 181-182
Business d)
Organizational Charts
- Emergency and Transportation Services
- Fairmount Home
Closed meeting a)
As Authorized under Section 239 (2) of The Municipal Act, to consider: (d) labour relations or employee negotiations
- Other business
- Next meeting date
- Adjournment
Page 2 of 182
AgendaItem#4a)
Finance Committee Meeting Minutes October 15, 2012 A regular meeting of the Finance Committee of the County of Frontenac was held in the County Boardroom of the County Administrative Office, 2069 Battersea Road, Glenburnie, on Monday, October 15, 2012 at 10:00 a.m. In attendance: Warden Janet Gutowski (teleconference) Councillor Bud Clayton Councillor David Jones Councillor John McDougall Staff: Elizabeth Savill, CAO/Clerk Marian VanBruinessen, Treasurer Susan Brant, Deputy Treasurer Angelique Tamblyn, Executive Assistant (Recording Secretary) 1.
Call to order Warden Gutowski called the meeting to order at 9:59 a.m. and called for nominations for Chair and Vice Chair. Committee Recommendation THAT Councillor Clayton assume the position of Chair and Councillor Jones assume the position of Vice Chair for the Finance Committee. CARRIED The Warden handed over the meeting to Councillor Clayton as the new Chair.
Adoption of the agenda The agenda was received as presented.
Disclosure of pecuniary interest and general nature thereof: The Chair requested that it be noted that no member of the Committee declared a pecuniary interest.
Closed meeting: Nil
Adoption of minutes: Nil
County of Frontenac Finance Committee Meeting Minutes October 15, 2012 Received by County Council October 17, 2012
Minutes of the meeting held October 15, 2012
Page 1 of 5
Page 3 of 182
AgendaItem#4a)
Business arising from the minutes: Nil
Deputations and/or presentations: Nil
Communications: Nil
Reports 2013 Budget Preparation Ms. Savill explained that staff had compiled a number of the issues considered as part of the development of the annual operating and capital budgets and included them in the report. Vehicle Fuel Costs: Ms. VanBruinessen advised that consultants are currently working with finance staff to assess fuel purchasing options. Bulk purchasing with the Townships will also be explored. Any decisions must take into account the accessibility of fuel for paramedics. Current over expenditures are being reviewed to determine whether unit costs or usage or a combination of both are above estimates. Committee members expressed interest in reviewing the makeup of the fleet. Tamblyn will re-circulate the information provided during orientation.
Ms.
Kilometrage Rates: Committee members agreed that rates should remain constant for 2013. Fairmount’s Financial Challenges: Ms. Shillington discussed the ongoing workload being created by the Long Term Care Act. Fairmount employs approximately 168 staff with many of those longer term staff. Benefit Costs: Ms. VanBruinessen responded to the question raised that a collective approach by the County and Townships is an option offered by the County regularly. Each Township is currently working independently. Ms. Savill offered that a collaborative effort was also explored with the City of Kingston at the time of amalgamation. Allocation of Costs: Councillor McDougall questioned whether the individual allocated budgets would be reviewed and Ms. VanBruinessen explained that these costs are allocated to each of the departmental budgets for review. Budget and Strategic Planning: Council Strategic Planning is scheduled for the end of November. The County has been doing strategic planning since 2000 and each department has a plan. The Warden advised that Central Frontenac does not yet have a strategic plan. Councillor McDougall expressed that it has been a good experience in South Frontenac and suggested that the County Council’s plan will present an opportunity to educate Township councils. Budget Timetable: Councillor McDougall suggested “mini talks” on issues would be helpful. A glossary of terms relevant to Fairmount was suggested by the Chair. County of Frontenac Finance Committee Meeting Minutes October 15, 2012 Received by County Council October 17, 2012
Minutes of the meeting held October 15, 2012
Page 2 of 5
Page 4 of 182
AgendaItem#4a)
Committee members agreed that it is important to understand their governance responsibilities to Fairmount. At this point, Ms. Savill circulated seven sets of DRAFT 2013 Budget Text papers. They offer insights into (1) Information Services; (2) HR (Committee members agreed that the service being offered by the team both internally and to the Townships is very valuable; Committee members agreed further that HR must be resourced appropriately); (3) Finance (contract assistance will continue to be required in 2013); (4) Administration and Communications (full-time additional staffing is required to address the demands of the six committees of council now in full operation); (5) Occupational Health; (6) Economic Sustainability; and (7) Sustainability Planning. The Fairmount and Emergency and Transportation papers are outstanding. Committee members were advised that the draft budget for Sustainability has been presented to both the Sustainability Advisory Committee and the Trails Advisory Committee. Both Committees have offered their support for the 2013 proposed activities. Committee members agreed that the information contained in the DRAFT 2013 Budget Text papers will be valuable as part of the 2013 budget discussions. Staff confirmed that the papers follow the Council approved format and will be incorporated into the budget. Committee members agreed that the 2013 Budget Text papers should be distributed as part of the Council Strategic Planning session package. Councillor McDougall expressed his appreciation of the work done by staff to prepare the draft documents. Committee Recommendation THAT the Finance Committee receives this 2013 Budget Preparation report for information and discussion; AND FURTHER THAT the Finance Committee recommend to the Council of the County of Frontenac that 2013 Council budget discussions be scheduled for the afternoon of Wednesday, January16th for preliminary departmental budget presentations (following the regular January meeting of Council); and Thursday, January 17th for full budget discussion, ratification and setting tax rates. CARRIED Ms. Shillington excused herself and left the meeting at 11:50am. Arterial Roads Under the Restructuring Order Committee members discussed the value of the County’s involvement in this issue. To this point, the Township of South Frontenac has been leading the effort both with the province and through conversations with City representatives. The County CAO and SF Public Works manager met with representatives of MTO recently and the value of cooperation and collaboration across the County dealing with transportation was County of Frontenac Finance Committee Meeting Minutes October 15, 2012 Received by County Council October 17, 2012
Minutes of the meeting held October 15, 2012
Page 3 of 5
Page 5 of 182
AgendaItem#4a)
stressed to them. The Township of Frontenac Islands also has a direct interest. All committee members agreed that this issue affects the whole County. Committee members recognized the opportunity to move forward with a regional transportation strategy at the upcoming Council Strategic Planning session. Such a strategy could deal with both this issue and with improving the area’s success with provincial funding opportunities. The regional nature of the road network and the interdependence of the City and Townships/County around the network must be explored and a plan put in place. The Public Works managers have been meeting. Committee members agreed that a regional transportation plan should be developed and, with it in place, the County will be in a stronger position to approach and negotiate the arterial roads issue and to compete for funding opportunities supporting transportation projects. Committee members agreed that a team should be established that includes expertise from the County, the Township(s), and the requisite professionals to provide the legal, economic and other insights necessary to develop the strategy with which to address the arterial roads issue. It must look broadly at the social, economic (tourism, business, and employment) challenges and opportunities from a regional transportation perspective. Committee members agreed that a preliminary budget estimate should be set at $50,000. An allocation from reserves should be confirmed by Council at its November regular meeting. Committee Recommendation THAT the Arterial Roads Under the Restructuring Order Report be received for information; AND FURTHER that the Committee recommend for consideration by Council the following resolution: RESOLVED THAT the Council of the County of Frontenac support the formation of a team of County, Township and consulting members to develop a strategy to approach the issue raised by Section 7.2(e) of the Restructuring Order that states “The council of the new City and the Frontenac Management Board shall, on or after January 1, 2013, reconsider the annual contribution …” to the named arterial roads located within the County of Frontenac; AND FURTHER that the Council of the County of Frontenac support the development of a regional transportation plan that will contribute to a regional strategy to the arterial roads issue and that will strengthen the County’s position to compete under provincial and federal funding programs; AND FINALLY that the Council of the County of Frontenac authorize the use of $50,000 as the preliminary budget for this project subject to the amendment of the 2012 Budget By-law to authorize the allocation from reserves at its next regular meeting of Council scheduled for November 21, 2012. CARRIED County of Frontenac Finance Committee Meeting Minutes October 15, 2012 Received by County Council October 17, 2012
Minutes of the meeting held October 15, 2012
Page 4 of 5
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AgendaItem#4a)
Long Term Financial Plan Report Committee Recommendation THAT the Financial Services – Long Term Financial Plan Report be received for information. CARRIED Reserve and Reserve Funds Report Committee Recommendation THAT the Financial Services – Reserve and Reserve Funds Report be received for information. CARRIED 10.
Other business Third quarter financials will be circulated to members during the week of November 5.
Next meeting date: Nil
Adjournment The meeting adjourned at 12:38 p.m.
County of Frontenac Finance Committee Meeting Minutes October 15, 2012 Received by County Council October 17, 2012
Minutes of the meeting held October 15, 2012
Page 5 of 5
Page 7 of 182
AgendaItem#7a)
Report 2013-010 COMMITTEE REPORT To:
CHAIR AND MEMBERS OF THE FINANCE COMMITTEE
From:
Elizabeth Savill CAO
Prepared by:
Marian VanBruinessen Treasurer Paul Charbonneau Director of Emergency and Transportation Services/Chief of Paramedics
Date prepared:
January 3, 2013
Date of meeting:
January 7, 2013
Re:
Finance Committee – Land Ambulance Useful Life Adjustment Further Discussion
Recommendation RESOLVED THAT the Finance Committee of the County of Frontenac accept this Financial Services – Useful Life of Land Ambulance Further Discussion report for discussion; Background A report entitled, Financial Services – Land Ambulance Vehicle Useful Life Adjustment, was presented to Council in October 2011 and referred to the Finance committee for review and recommendation. Comment It is critical to understand that there are two different issues involved in this discussion. The first relates to amortization and the Ministry funding provided based on useful life. The second issue relates to the actual cost to maintain vehicles on the road. Amortization and Ministry Funding Useful life is the amount of time that an asset is expected to be used and determines the appropriate decrease in the value of assets over time. This use of value is also called amortization and is primarily an accounting mechanism whereby the appropriate use of an asset is applied to the period in which it is used. Amortization is a non-cash parameter. As such it is shown on the budget documents as netted off for the purpose of the tax levy. Finance Committee – Land Ambulance Useful Life Adjustment - Further Discussion January 7, 2013
Report 2013-010 Financial Services - Land
Page 1 of 7
Page 8 of 182
AgendaItem#7a)
Funding and Amortization The Ministry of Health does not fund capital, but will fund its share of amortization within a given year. Ambulance purchase value $132,000 useful life in years 6 Annual amortization $22,000 Ministry annual contribution for 15 vehicles $165,000 useful life in years annual amortization Ministry annual contribution for 15 vehicles
4.5 $29,333 $220,000
Granted the Ministry will ultimately only provide 50% of the original price of the vehicle whether over 6 years or over 4.5 years. However the shorter useful life means that the County would have the Ministry funding in a timelier manner. The County of Frontenac is the only municipality that currently has a 6 year useful life for ambulances. Most municipalities have maintained the Ministry guideline of 4.5 years, although some are moving to a shorter time frame. Vehicle Maintenance and Replacement The second discussion relates to the practical maintenance and replacement of an ambulance dependent on its useful life. Table 1 at the end of this report provides a comparison of the costs related to a 4.5 year versus a 6 year cycle. It was suggested that the City of Kingston policy on vehicle replacement be considered. The City of Kingston Fleet Manager indicated that there is no set “policy’. The City’s small transit bus on the Ford E450 platform, which averages a similar 80,000 km per year, was deemed to be similar to the ambulance. This is “amortized” over 4 years and replaced between 4 to 5 years. It must be noted that an assessment of the ambulance fleet, deployment opportunities and maintenance requirements, is undertaken prior to determining the need to replace an ambulance. Sustainability Implications Sustainability is dependent on good governance and stewardship of County resources. Organizations, Departments and Individuals Consulted and/or Affected City of Kingston
Finance Committee – Land Ambulance Useful Life Adjustment - Further Discussion January 7, 2013
Report 2013-010 Financial Services - Land
Page 2 of 7
Page 9 of 182
AgendaItem#7a)
Finance Committee – Land Ambulance Useful Life Adjustment - Further Discussion January 7, 2013
Report 2013-010 Financial Services - Land
Page 3 of 7
Page 10 of 182
Vehicle Maintenance Costs - 6 Year Replacement Cycle
AMBULANCES
Report 2013-010 Financial Services - Land
Table 1
OASIS # 4184 4126 4176 4120 4124 4121 4180 4123 4125 4525 4181 4122 4131 4132 4129 4184 4126 4176 4120 4124 4123 4125 4121
REPLACE. YEAR
2012
2013
2014
2015
2016
2017
2018
2019
2013 2014 2014 2015 2015 2015 2015 2016 2016 2016 2017 2017 2017 2017 2017 2019 2020 2020 2021 2021 2022 2022 2022
10000 25000 25000 20000 20000 20000 20000 15000 15000 15000 10000 10000 10000 10000 10000 0 0 0 0 0 0 0 0
0 30000 30000 25000 25000 25000 25000 20000 20000 20000 10000 10000 10000 10000 10000 7500 0 0 0 0 0 0 0
0 0 0 30000 30000 30000 30000 25000 25000 25000 15000 15000 15000 15000 15000 10000 7500 7500 0 0 0 0 0
0 0 0 0 0 0 0 30000 30000 30000 20000 20000 20000 20000 20000 15000 10000 10000 7500 7500 7500 7500 0
0 0 0 0 0 0 0 0 0 0 25000 25000 25000 25000 25000 20000 15000 15000 10000 10000 10000 10000 7500
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25000 20000 20000 15000 15000 15000 15000 10000
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 30000 25000 25000 20000 20000 20000 20000 15000
7500 30000 30000 25000 25000 25000 25000 20000
Finance Committee – Land Ambulance Useful Life Adjustment - Further Discussion January 7, 2013
Page 4 of 7
AgendaItem#7a)
Page 11 of 182
FPS FLEET
71527-07 71529-08 71530-08 71531-09 71532-09 71537-09 71538-09 71535-10 71536-10 71540-10 71544-11 71545-11 71546-11 71547-11 71548-11 13 14 14 15 15 16 16 16
Report 2013-010 Financial Services - Land
16 16 17 17 17 17 17
4180 4525 4181 4122 4131 4132 4129
2022 2022 2023 2023 2023 2023 2023
TOT.
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
7500 7500 0 0 0 0 0
10000 10000 7500 7500 7500 7500 7500
15000 15000 10000 10000 10000 10000 10000
20000 20000 15000 15000 15000 15000 15000
235000
277500
295000
255000
237500
19250 0
255000
310000
FPS FLEET # 71527-07 71529-08 71530-08 71531-09 71532-09 71537-09 71538-09 71535-10 71536-10 71540-10 71544-11 71545-11 71546-11 71547-11
OASIS # 4184 4126 4176 4120 4124 4121 4180 4123 4125 4525 4181 4122 4131 4132
REPLACE. YEAR
2012
2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2016 2016 2016 2016
10000 25000 25000 20000 20000 20000 20000 15000 15000 15000 10000 10000 10000 10000
Finance Committee – Land Ambulance Useful Life Adjustment - Further Discussion January 7, 2013
2013
2014
0
25000 25000 25000 25000 20000 20000 20000 10000 10000 10000 10000
2015
0 0 0
25000 25000 25000 15000 15000 15000 15000
0 0 0 0 0 0 0 0 0 0 20000 20000 20000 20000
Page 5 of 7
2016
2017
0 0 0 0 0 0 0 0 0 0 0 0 0 0
2018
0 0 0 0 0 0 0 0 0 0 0 0 0 0
2019
0 0 0 0 0 0 0 0 0 0 0 0 0 0
AgendaItem#7a)
Page 12 of 182
AMBULANCES
Vehicle Maintenance Costs - 4.5 Year Replacement Cycle
Report 2013-010 Financial Services - Land
4129
2016
10000
10000
15000
20000
0
0
0
13
4184
2018
0
7500
10000
15000
20000
25000
7500
13
4126
2018
0
7500
10000
15000
20000
25000
7500
13 14 14 14 14
4176 4120 4124 4123 4125
2018 2019 2019 2019 2019
0 0 0 0 0
7500 0 0 0 0
10000 7500 7500 7500 7500
15000 10000 10000 10000 10000
20000 15000 15000 15000 15000
25000 20000 20000 20000 20000
7500 25000 25000 25000 25000
15
4121
2020
0
0
0
7500
10000
15000
20000
15
4180
2020
0
0
0
7500
10000
15000
20000
15
4525
2020
0
0
0
7500
10000
15000
20000
16
4181
2021
0
0
0
0
7500
10000
15000
16
4122
2021
0
0
0
0
7500
10000
15000
16
4131
2021
0
0
0
0
7500
10000
15000
16
4132
2021
0
0
0
0
7500
10000
15000
16
4129
2021
0
0
0
0
7500
10000
15000
1000 0 1000 0 1000 0 7500 7500 7500 7500 2500 0 2500 0 2500 0 2000 0 2000 0 2000 0 2000 0 2000 0
235000
232500
210000
207500
187500
250000
25750 0
2350 00
45000
85000
47500
50000
-57500
-2500
7500 0
TOT.
Annual net difference
Finance Committee – Land Ambulance Useful Life Adjustment - Further Discussion January 7, 2013
Page 6 of 7
AgendaItem#7a)
Page 13 of 182
71548-11
Report 2013-010 Financial Services - Land
Cumulative net difference
45000
130000
177500
Page 7 of 7
170000
167500
2425 00
AgendaItem#7a)
Page 14 of 182 Finance Committee – Land Ambulance Useful Life Adjustment - Further Discussion January 7, 2013
227500
AgendaItem#7b)
Report 2013-012 COMMITTEE REPORT To:
CHAIR AND MEMBERS OF THE FINANCE COMMITTEE
From:
Elizabeth Savill CAO
Prepared by:
Colleen Hickey Human Resources Specialist – Labour Relations
Date prepared:
January 4, 2013
Date of meeting:
January 7, 2013
Re:
Finance Committee – Revised Non-Union Salary Adjustment Policy
Recommendation RESOLVED THAT the Council of the County of Frontenac receive this Human Resources – Revised Non-Union Salary Adjustment report; FURTHER THAT Council authorize the implementation of the Non-Union Salary Adjustment Policy that directs:
- Annual adjustments to non-union rates will be set in accordance with the annual Ontario Consumer Price Index for October of each year based on the annual CPI rate.
- If the Index falls below two (2) percent, the average of the three (3) County collective agreements wage increases should be applied to the non-union wage schedules to reflect a wage increase and maintain a margin between the unionized and non-unionized bands to curtail compression.
- Further, a review of the average increases of the four (4) Frontenac Townships, authorized at the time of the County budget will be brought forward for Council’s review to ensure a fair rate is applied.
- Should the Index exceed three (3) percent, Council direction shall be sought prior to any adjustments being made.
- All adjustments will be effective January 1st of each year. AND FURTHER THAT Council authorize a 2% non-union increase for 2013 based on the parameters outlined above.
Committee Report Finance Committee – Human Resources Revised Non-Union Salary Adjustment Policy January 7, 2013
Report 2013-012 Human Resources - Non-Union
Page 1 of 3
Page 15 of 182
AgendaItem#7b)
Background The County has to be cognizant of non-union wages in comparison to the wages of our three unionized groups. Maintaining a fair compensation between the union and non-unionized wages is a challenge as a result of compression between bands. Implementation of this policy would assist management with compression concerns, as well as provide a fair and justifiable annual increase to the non-union salaries by observing the October CPI to determine the following increase to non-union wages. Human Resources brought forth a report in January 2012 to County Council seeking approval for a non-union salary adjustment for 2012. The purpose of this request was to avoid adverse effect on our non-union employees by fluctuations in their cost of living and to provide staff a fair increase to their salary structure. Council approved the recommendation. During that session Council passed the following resolution supporting the adjustment and also directing staff to prepare a Salary Adjustment policy: Motion #: 12-12
Moved By: Seconded By:
Deputy Warden Doyle Councillor Davison
RESOLVED THAT the Council of the County of Frontenac receive the Human Resources – 2012 Non-Union Salary Adjustment Update report; AND FURTHER THAT Council authorize a non-union salary increase of 2.9%, effective January 1, 2012 to be applied to all steps of the non-union staff salary schedule; AND FINALLY THAT Human Resources staff present a Salary Adjustment policy for Council’s consideration and approval at the earliest opportunity. CARRIED As per the above Council resolution, staff brought forward a Salary Adjustment Policy for Council’s consideration at its September 19th Council meeting at which time Council deferred approval of the proposed policy to the December 19th meeting. Since that time staff has conducted additional research on the policy which are noted in this report and was brought forth to the December 19, 2012 meeting, where it was deferred to the Finance Committee. Comment Human Resources compiled and reviewed copies of a number of policies from other municipalities including the four County townships. Salary adjustment policies are a typical Human Resource practice most often based on the Consumer Price Index (CPI), with consideration of negotiated settlements in union environments The following has been compiled reflecting 2012 non-union wage rates for the four townships and the Eastern Ontario Municipal Human Resources Group:
- For the four Townships of Frontenac, the approved salary adjustments for 2012 average 2.57%.
- For Eastern Ontario Municipal Human Resources Association (EOMHRA), the approved salary adjustments for 2012 average 2.19%.
Committee Report Finance Committee – Human Resources Revised Non-Union Salary Adjustment Policy January 7, 2013
Report 2013-012 Human Resources - Non-Union
Page 2 of 3
Page 16 of 182
AgendaItem#7b)
When last measured, the County’s salary structure sat at the 41st percentile in wages. This percentile reflects a non-competitive position for similar job classes within similar municipalities. Further work continues to be undertaken in this regard. By introducing the Non-Union Salary Adjustment Policy, Human Resources will follow the guideline as described in this report and apply the adjustment accordingly. This action will assist the County in its efforts to retain qualified and knowledgeable staff in the positions for which they were hired. Two percent has consistently been the average increase provided to municipalities in the Eastern Ontario region. For example of those Eastern Ontario counties which have presented their 2013 budget, Lanark County confirmed its non-union increase at 2.5%, Renfrew is proposing 2% and Northumberland is proposing 2.5%. The Township of South Frontenac passed a 2.1% non-union wage increase, which is in line with its unionized collective agreement. The OPSEU local 462 contract provides for a 2.5% wage increase in 2013 and the CUPE 109 contract provides for a 2.25% increase in 2013. The CUPE 2290 agreement is under negotiation and research reveals that long term care is currently receiving on average a 2.25% increase for 2013. Financial Implications
Effective January 1, 2013 and each year thereafter, the non-union salary range would be adjusted according to this policy. The increase would be reported to Council during annual budget. In 2013 a 2% increase would impact the levy by .26% which is a cost of $21,300. Organizations, Departments and Individuals Consulted and/or Affected Eastern Ontario Municipal Human Resources Group Hicks Morley Townships of Frontenac
Committee Report Finance Committee – Human Resources Revised Non-Union Salary Adjustment Policy January 7, 2013
Report 2013-012 Human Resources - Non-Union
Page 3 of 3
Page 17 of 182
Report 2013-012 Human Resources - Non-Union
County of Frontenac Salary Schedule for Non-Union Staff, 2012 Pt. Range
A
STEP 3
STEP 4
STEP 5
STEP 6
62.68 114,071
64.87 118,068
67.14 122,199
69.49 126,469
71.92 130,889
74.44 135,477
57.61 104,857
59.63 108,528
61.71 112,311
63.88 116,262
66.11 120,326
68.42 124,521
FMT DOC 37.5 hour work week Effective January 1, 2012 Annual salary based on a 37.5 hour work week
42.23 82,349
43.71 85,238
45.25 88,228
46.82 91,298
48.47 94,509
FPS Deputy Chief - Operations FPS Deputy Chief QA, Trg & Prog Dev. 40 hour work week Effective January 1, 2012 Annual salary based on a 40 hour work week
42.23 87,839
43.71 90,921
45.25 94,110
46.82 97,385
48.47 100,809
FMT Assistant Director of Care 37.5 hour work week Effective January 1, 2012 Annual salary based on 37.5 hour work week
41.48 80,884
42.48 82,830
43.50 84,817
44.54 86,843
45.61 88,930
1800-2000 CAO-Clerk 35 hour work week Effective January 1, 2012 Annual Salary based on a 35 hour work week 1600-1799 No positions in this range
C
1400-1599 No positions in this range
D
1200-1399 FMT Administrator Director of Emergency & Transportation Services/Chief of Paramedic Services Treasurer 35 hour work week Effective January 1, 2012 Annual salary based on a 35 hour work week
F
G
800-1199
700-799
700-799
Manager of Economic Sustainability Occupational Health Nurse
AgendaItem#7b)
STEP 2
B
E
Page 18 of 182
STEP 1
POSITIONS WITHIN THE POINT RANGE
Report 2013-012 Human Resources - Non-Union
H
I
600-699
500-599
Manager Sustainability Planning 37.5 hour work week Effective January 1, 2012 Annual salary based on 37.5 hour work week
37.59 73,299
38.91 75,868
40.26 78,516
41.67 81,265
43.14 84,115
FPS Supervisor of Operations FPS Supervisor of Performance Standards 42 hour work week Effective January 1, 2012 Annual salary based on a 42 hour work week
37.59 82,095
38.91 84,972
40.26 87,938
41.67 91,017
43.14 94,208
Human Resources Specialist - Labour Relations Deputy Treasurer 35 hour work week Effective January 1, 2012 Annual Salary based on a 35 hour work week
34.98 63,656
36.20 65,884
37.46 68,169
38.77 70,566
40.13 73,038
Manager of Information Services 37.5 hour work week Effective January 1, 2012 Annual Salary based on a 37.5 hour work week
34.98 68,203
36.20 70,590
37.46 73,038
38.77 75,607
40.13 78,255
Deputy Clerk 35 hour work week Effective January 1, 2012 Annual salary based on 35 hour work week
31.66 57,625
32.77 59,648
33.92 61,727
35.10 63,881
400-499
No positions in this range
29.46
30.49
31.56
32.65
K
350-399
ETS Marine Supervisor 35 hour work week Effective January 1, 2012 Annual Salary based on a 35 hour work week
28.06 51,071
29.04 52,850
30.06 54,704
31.11 56,614
Human Resources Generalist/Researcher 35 hour work week Effective January 1, 2012 Annual salary based on 35 hour work week
28.06 51,071
29.04 52,850
30.06 54,704
31.11 56,614
Communications Officer
AgendaItem#7b)
Page 19 of 182
J
Report 2013-012 Human Resources - Non-Union
L
M
N
300-349
240-299
0-239
35 hour work week Effective Febraury 15, 2012 Annual salary based on 35 hour work week
28.06 51,071
29.04 52,850
30.06 54,704
31.11 56,614
ETS Systems Technician 37.5 hour work week Effective January 1, 2012 Annual salary based on 37.5 hour work week
28.06 54,719
29.04 56,625
30.06 58,611
31.11 60,658
FMT Executive Assistant ETS Executive Assistant FRC Executive Assistant ETS Performance Standard Assistant 35 hour work week Effective January 1, 2012 Annual salary based on 35 hour work week
26.58 48,374
27.51 50,059
28.47 51,820
29.47 53,636
ETS Administrative Clerk ETS Logistics Clerk 37.5 hour work week Effective January 1, 2012 Annual salary based on 37.5 hour work week
23.62 46,050
24.44 47,656
25.29 49,321
ETS Administrative Assistant 35 hour work week Effective January 1, 2012 Annual salary based on 35 hour work week
19.85 36,126
20.53 37,362
21.26 38,692
AgendaItem#7b)
Page 20 of 182
AgendaItem#7c)
Report 2013-009 COMMITTEE REPORT To:
Chair and Members of the Finance Committee
From:
Elizabeth Savill CAO
Prepared by:
Colleen Hickey Labour Relations Specialist
Date prepared:
December 7, 2012
Date of meeting:
January 7, 2013 (Referred from the December 19, 2012 County Council meeting)
Re:
Finance Committee – Organizational Study Options
Recommendation THAT Council of the County of Frontenac receive this Human Resources –Organizational Study Options report; AND FURTHER that Council of the County of Frontenac authorize the CAO to engage the services of a consultant to complete the appropriate Organizational Study by April 30, 2013; AND FURTHER that Council of the County of Frontenac authorize this expenditure of these funds through the Frontenac Working Fund Reserve to be accounted for as an expenditure of 2012; AND FINALLY that Council of the County of Frontenac amend its 2012 budget to reflect this decision. Background County staff has identified the need to conduct an organizational study to review its operational services within Corporate Services. Corporate Services includes the Administrative Services and Financial Services staff groups. Over the past twelve months, Corporate Services has acknowledged significant workload challenges and expectations placed on its services and activities. Primarily, these challenges are attributable to increased provincial reporting and legislative requirements and to the six Council committees now fully operational. The impact is resulting in timelines being delayed and key work being re-prioritized to accommodate the high volumes of work and to meet client needs. Management have discussed departmental concerns, and have made adjustments to compensate where possible. The increase in the workload is not due to any staff vacancies, although it is exacerbated by current vacancies, and all staff are striving to effectively and efficiently use their time. Finance Committee – Organizational Study Options January 7, 2013
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AgendaItem#7c) Corporate Services is made up of twenty-one employees working in various areas that serve both Council and its committees, and the County’s two main frontline operations, Fairmount Home and Emergency and Transportation Services. In addition, some/all of the four Townships of Frontenac are offered regular services in Finance and Planning as well as Human Resources/Occupational Health and Information Services on an as needed basis. Since 1998 the County has seen modest and significant years of growth.
In 1998, Amalgamation occurred and the Frontenac Management Board was then titled the Corporation of the County of Frontenac and was relocated to its present address of 2069 Battersea Road from the County Courthouse located in downtown Kingston. The Administrative count during that transition was less than a handful of positions – a part-time CAO/Clerk/Treasurer (who was also the Administrator of Fairmount Home), an Administrative Assistant, and a Deputy Treasurer.
Since amalgamation the operational departments have seen significant growth which included the addition of Frontenac Paramedic Services as an in-house operation in 2004 and the increase of 32 beds at Fairmount Home in 2004. At the same time Corporate Services have increased modestly to serve the needs of County Council, operational departments and the community.
In 2006 an organizational study was undertaken and the following direction was taken to reorganize Corporate Services:
- The Director of Human Resources position was made redundant and replaced with a Human Resources Generalist position, this is a mid-line HR position and the Human Resources managerial duties were realigned as responsibilities of the senior management team of the County of Frontenac.
- A net increase of four full time positions was approved as a result.
Since 2007 there have been seven positions added to Corporate Services as per Council approval to meet operational needs, they include: 1. 2. 3. 4. 5. 6. 7.
Occupational Health Nurse Information Technology Supervisor Human Resources Specialist – Labour Relations Manager of Sustainability Planning GIS Specialist Communications Specialist Community Planner
In 2010 Council increased its complement from a four to eight member Council and there are also six committees of Council for which Corporate Services provides all administrative support. As it is attempting to absorb the impact of the increased council size, new committee structure and resulting workload, Corporate Services has identified challenges to serving its members of Council, operational departments and Townships in a satisfactory and timely manner. Staff brought forward a Corporate Service Organizational Study in October for Council’s consideration. Council deferred approval of the proposed study to the December 19th meeting. At the October meeting, Council discussed the opportunity to broaden the scope of the Organizational Study. Since that time, a further broadening of the scope of the project was discussed by some members at the Council Strategic Planning session. Additional research has been conducted by staff to reflect the interest expressed to acknowledge the additional work being raised by Council. Pricing is estimated based on the County of Frontenac operations which include: Corporate Services, Emergency and Transportation Services and Fairmount Home. Finance Committee – Organizational Study Options January 7, 2013
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Comment At its October 17, 2012, Council directed staff to bring a report back to Council in December with a recommendation for an Organizational Study for the County operations as a whole. Staff presents the following options for Council’s consideration: Option 1 - Corporate Services Organizational Study: For Council to be confident in its response to the calls being made for additional staff resources, a study must be conducted by an external consultant to (1) assess the level of staff resources and (2) ensure these resources are being utilized effectively. The study will provide:
An analysis and evaluation of the current management and staff structure A review of current administrative processes and business functions An assessment of interdepartmental relationships and communications A review of talent management
Option 2 - County Departments Administrative Organizational Study: An analysis and evaluation of the current management and administrative staff structure of all departments in the County (Paramedic Services, Ferry Services, Fairmount Home and Corporate Services) A review of current administrative processes and business functions An assessment of interdepartmental relationships and communications A review of talent management Option 3 - County Administrative & Operational Organizational Study:
An analysis and evaluation of the current management, administrative staff and operational staff of all departments in the County (Paramedic Services, Ferry Services, Fairmount Home and Corporate Services) A review of current processes and business functions An assessment of interdepartmental relationships and communications A review of talent management
Sustainability Implications Undertaking an organizational study will ensure and confirm the County’s capacity to support the strong governance and operations of the County. Financial Implications Option 1: The financial impact to conduct a Corporate Services Organizational Study is in the range of $40,000. Option 2: The financial impact to conduct an Organizational Study of all County departments’ administrative functions is in the range of $65,000. Option 3: This would be an extensive study that would require a significant amount of time and coordination. The financial impact to conduct an Organizational Study for all County departments’ administrative and operational functions is in the range of $125,000. Funds for these options can be drawn from the Frontenac Working Fund Reserve. Finance Committee – Organizational Study Options January 7, 2013
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AgendaItem#7c)
Organizations, Departments and Individuals Consulted and/or Affected Human Resources Municipal Intern EO-HR group
Finance Committee – Organizational Study Options January 7, 2013
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AgendaItem#8a)
Report 2013-003 COMMITTEE REPORT To:
CHAIR AND MEMBERS OF THE FINANCE COMMITTEE
From:
Elizabeth Savill CAO
Prepared by:
Marian VanBruinessen Treasurer Paul Charbonneau Director of Emergency and Transportation Services/Chief of Paramedics Julie Shillington Administrator of Fairmount
Date prepared:
January 3, 2013
Date of meeting:
January 7, 2013
Re:
Finance Committee – 2013 Budget Presentation
Recommendation RESOLVED THAT the Finance Committee of the County of Frontenac accept this Financial Services – 2013 Budget Presentation report for discussion; AND FURTHER that the Finance Committee confirm its list of comments and observations concerning the 2013 Budget Presentation developed at this meeting; AND FINALLY the Finance Committee recommend that the 2013 Budget Presentation including the list of comments and observations developed by the Committee go forward to the Council of the County of Frontenac at its regular meeting scheduled in January 2013.
Background Under the Municipal Act, 2001, S.O. 2001, CHAPTER 25, as amended, Section 289(1) states an upper-tier municipality shall in each year prepare and adopt a budget including estimates of all sums required during the year for the purposes of the upper-tier municipality. Comment General Economic Scope: Canada has been impacted by weakness in the global economy, particularly in Europe and the United States. Growth projections are positive, but slow with the Finance Committee – 2013 Budget Presentation January 7, 2013
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forecast for 2% growth in 2013. The Canadian dollar is likely to average near parity throughout 2013 and short term interest rates to sit around 1%. OMERS (Ontario Municipal Employees Retirement System) contributions will increase by an average of 10% in 2013. Medical benefits were marketed for 2013 and as a result the overall increase based on 2012 is .2%. WSIB rates have increased by 2%, the EI maximum contribution has increase by 6.4% and the CPP maximum contribution increased by 4%. Strategic Direction: The County has a strategic vision for the next 50 years as documented in its Integrated Community Sustainability Plan (ICSP), Directions for our Future, a document that has achieved Provincial recognition. Council continues to be progressive in recognizing the need to maintain and build on the momentum of this strategic exercise. This community-led initiative provides an opportunity to cooperatively build on the strengths and opportunities that abound. Council Direction: Council is responsible for setting a direction for the County over the term of its mandate. The strategic planning session in November 2012 did not result in clear direction. Budget Development: The budget was developed in the context of all the factors outlined above, recognizing the need to be fiscally prudent but ensuring that the County continues to be in a position to be able to take advantage of opportunities for future sustainable development. It is critical to understand that the budget has been prepared for the annual period beginning in January 2013. Any delay in passing the budget will impact opportunities for mitigation strategies. Land Ambulance – Significant negative pressures affect the 2013 land ambulance budget, these include:
Reduced revenues from cross border agreements due to the L&A County EMS station opening in Loyalist Township on September 1, 2012, Collective Agreement wage increases of 2.5% to paramedics, A significant 7.9% increases in benefits i.e. OMERS, CPP, EI, Employer Health Tax and WSIB, A 16% increase in sick replacement costs for 2012 over 2011 hours.
The initial draft 2013 land ambulance budget anticipated a 7.37% increase in expense. Staff has reduced this to the current draft land ambulance budget expense of 1.77% increase through the following mitigation of expenses:
- Reducing Training Hours: Training hours had been maintained, in previous years, at a high level in anticipation of the Ministry of Health and Long term Care (MOHLTC), Emergency Health Services Branch (EHSB) mandating additional training for Primary Care Paramedics. The best information available is that this will not occur.
- Reducing Unassigned Staffing Hours: Unassigned staffing hours are utilized for emergency upstaffing, public relations events and unexpected staffing requirements outside of the usual staffing commitment in our Deployment Plan including Queen’s events, severe weather, etc. FPS will reduce the public relations events that it pays staff to attend and choose those that have the best return on investment in getting our message to the public regarding the service. Finance Committee – 2013 Budget Presentation January 7, 2013
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- Sick Time Replacement Reduction Strategy: In 2010, FPS attempted to introduce a practice, similar to the one introduced at Fairmount Home, which would see the first sick call not replaced to reduce costs. We were unable to introduce that strategy because we were in a “Freeze Period” due to Collective Bargaining. In 2013, FPS will introduce a program where the first and second sick call will not be replaced to reduce costs. This would result in potential downstaffing of an ambulance on some day shifts. The goal is to achieve 5,000 hours of sick time replacement cost reductions in 2013.
- Vehicle Maintenance Cost Reductions Savings of $22,500 per ambulance can be achieved if the report on the life cycle replacement of ambulances is approved. Moving from a six (6) year cycle to a four and one-half (4.5) year cycle significantly reduces maintenance costs as the budget for the sixth (6th) year is $30,000 versus the first (1st) year of $7,500. Fairmount Home – In March 2010, the Council at the time directed staff that there shall be no increase to the Fairmount Home municipal operating levy for the next three years through a strategy to achieve efficiencies in the Home’s operation. This did not include transfers to reserves. For 2013, Council needs to be aware of how holding to the 0% operating levy increase will impact upon the residents and staff of the home. It has been suggested that some financial information be provided to Council on how Fairmount compares to other municipal long-term care homes. It’s important for Council to acknowledge that each long-term care home is unique and its uniqueness has a direct impact on its budget. The services provided in one home may not be the same as those in another. How common services are provided can differ from home to home. Each home has unique mission and vision statements that guide their operations. Work life cultures are different as are homes’ abilities to attract staff and volunteers. There are differences in collective agreements, wage rates and benefit levels. Some homes pay an allocation for administrative shared costs where others may pay no costs where services are centralized. Resident acuity varies from home to home as demonstrated through varying CMI levels. The location of the home can have an impact on access to external services, employee recruitment, volunteerism, etc. The layout of the home will have an impact on how it is staffed – how many floors, how many residents per unit, how many dining rooms. There are also historical differences between for-profit and not-for-profit homes. Attached as Appendix I to this report is some further information from the Ontario Association of Non-Profit Homes and Services for Seniors (OANHSS) on this topic. It is important that the operations of different homes are not compared without understanding their uniqueness and how that impacts on the operations. To fail to take into account these differences does a disservice to our residents, staff and volunteers. Some Councillors have referred to Fairmount as the “Cadillac” of long-term care homes or as providing “elite” services. Fairmount is unique, just like every other home in the province and the fact that we have a long waiting list and a high rate of resident and family satisfaction does not mean that we are elite – it means we are doing a good job. At Fairmount our residents are treated with dignity and respect in a creative and responsive environment in which all members are dedicated to promoting the individual strengths and abilities of each other. It is our mission and we believe in it. The Ontario Association of Non-Profit Homes and Services for Seniors (OANHSS) conducts an annual survey of its member homes focusing on funding sources, envelope expenditure levels, average hourly wages, benefits, leaves, premiums, volunteer hours and supplies and service expenditures. This is the most comprehensive benchmarking survey in our possession and the Finance Committee – 2013 Budget Presentation January 7, 2013
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results are confidential for OANHSS members only. Unfortunately, as this is such a large survey, it takes a while to get the results and we only received the 2009 results in 2012. At that time 104 homes participated in the survey, 64 of those being municipal homes. The following are some results that you may be interested in considering: Item
Fairmount
Municipal Average
Gross expenditure per resident day – nursing Gross expenditure per resident day – programming Gross expenditure per resident day – raw food Gross expenditure per resident day – OA Supplies & services expenditure – in-house & contract
$114.57
$113.90
$8.35
$9.30
$7.12
$7.94
$67.62
$71.25
$37.13 **facility costs higher due to well water system requirements
$32.31
The following chart outlines the municipal operating levy, of which the County contributes 32%, over the past four years: Year
Operating Levy
2009 2010 2011 2012
$2,241,479 $2,180,672 $2,180,672 $2,180,669
According to the benchmarking report, the average municipal contribution per resident day in 2009 was $37.28 which included average grant contributions of $20.74 per resident day and fundraising and related contributions of $0.36 per resident day. As you can see the County’s levy contribution was $47.98 however there were no grant or fundraising contributions documented for Fairmount. Council will notice that the operating levy for Fairmount has not increased since 2009. The levy was maintained through: a) an increase in Ministry funding in 2010 and 2011 which recognized the requirements for implementation of the Long-Term Care Homes Act b) a reduction in some contract costs (elevator, garbage removal, incontinence products, dietary and environmental service management), c) a reduction in staffing levels in the nursing department in 2011. In 2012 we did not receive the funding anticipated in the budget from the Ministry and for 2013 the anticipated funding coming from the Ministry is not expected to keep up with operating cost increases. For the purposes of this discussion, the current budget will be separated as follows: a) Ministry Revenue b) Resident Revenue c) Other Revenue Finance Committee – 2013 Budget Presentation January 7, 2013
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d) Wages & Benefits e) Non-wage/benefit operating costs a) Ministry Revenue In 2011, the Ministry of Health & Long-Term Care had indicated to long-term care homes that a 3% increase in the programming and nursing envelopes could be anticipated. Unfortunately this increase did not materialize and we only received 1% in each envelope. For 2013 we are budgeting 1% for each of the four envelopes (programming, nursing, raw food and other accommodation), and also recognizing funding for water testing and small increases in RPN and RAI Coordinator funding. These changes translate to an increase in total Ministry funding of $2,961 over the 2012 budget. We anticipate receiving our Case Mix Index (CMI) in early February. The 2013 budget is being calculated based on current CMI. In addition we have confirmation that we will be receiving per diem funding for high intensity needs in both our nursing and raw food envelopes totalling $35,040. In the last week of December 2012, we received notice that we would be receiving one-time funding to be put towards HIN (high intensity needs) transition, resident safety and staff training. This funding totals $33,400. b) Resident Revenue For 2013, we are budgeting based on the actual 2012 basic accommodation fees. c) Other Revenue We have budgeted for salon rent which we have not done in the past. We anticipate receiving $1,000 for the year. We also show a transfer from reserves in the amount of $61,000 which represents $56,000 from the severance reserve to cover anticipated severance costs and $5,000 from the Pathways reserve for Pathways maintenance. General recoveries anticipates raw food recoveries through the café and wage recoveries related to cleaning and maintenance of the Old House. Overall we anticipate an increase in total budgeted revenue of $216,569 over the 2012 excluding any increase in contribution from the City of Kingston. d) Wages & Benefits Wages and benefits make up 80% of the total operating budget with total wages for 2013 anticipated to be $6,630,054 and benefits to be $2,019,451. These estimates include a worst case scenario wage settlement of 2%, anticipated severance costs of $56,000 and Fairmount’s share of the County’s requested Human Resource Assistant position. This results in an increase to the wage budget of $173,045. In addition, there are significant increases in OMERS, CPP, WSIB and medical benefits for an overall increase of 9.3% to the benefit budget for a total increase of $173,780. Wage and benefit increases total $346,825. e) Non-Wage/Benefit Operating Costs The management team at Fairmount has reviewed all non-wage/benefit expenditures and while we have been able to maintain or even find slight savings, there are some areas that are out of its control that are affecting the operating costs. As Council has been made aware through a previous report, there have been changes made to the Ministry’s High Intensity Needs Fund. As noted above, effective January 1, 2012, the home will receive a per diem in the nursing and raw food envelopes for use for high intensity needs such as feeding tubes, specialized wound care, vital pain management, etc. Based on a review Finance Committee – 2013 Budget Presentation January 7, 2013
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of our historic costs, we anticipate that this per diem will not be enough to cover our residents’ needs. We have added the per diem funded $35,040 for high intensity needs to the operating budget and an additional $10,000 that we estimate will be needed for these supplies. We require annual maintenance on our ceiling lifts. In the past, this service was provided without cost under an agreement with our vendor. Unfortunately, this will not be the case for 2013 therefore $6,800 has been added to the budget for this service. Finally, there is an increase in the contract costs related to the management of the dietary and environmental services departments in the amount of $19,769. The increases related to wage and benefit costs and the above-noted non-wage/benefit costs total $418,434. Through a review and prioritization of contracts, projects and training we were able to find savings of $97,326 to bring the overall operating expenditure increase to $371,709 (3.57%). This did require delaying the implementation of the new nursing and preventative maintenance software, delaying the completion of physical demands analysis for a variety of positions, delaying the replacement of nursing care carts, suspending the wall protection project and removing dollars from the corporate education allocation. In order to meet Council’s direction for no levy increase related to operating, we will need to reduce the operating expenditures by a further $114,982. With this in mind the management team has prepared several options for consideration should Council not be prepared to approve the budget as it stands currently. Option #1 Eliminate maintenance flex hours ($20,000) and reduce sick leave coverage. Reduction in the maintenance flex hours does not require lay-off of staff and we could continue the practice of not replacing the first two PSW sick calls on the day shift with an option to expand the not replacing into other areas of the home. This would also allow us the time to work with the union during collective bargaining, which commences January 9, to negotiate a wage rate that could allow the home to continue operations without the lay-off of staff. To lay-off staff before collective bargaining will eliminate any leverage we may have to negotiate an acceptable wage rate. Should these efforts prove not to be successful management would bring back a report to Council in June, 2013 with further recommendations. Option #2 If Council does not wish to allow management, the union and staff the opportunity to work together to meet budget without lay-offs, staffing reductions would be required as follows: a) Fairmount would not be able to pay its’ share of the County’s proposed new Human Resources Assistant. b) The fourth PSW on day shift on the secure unit would be eliminated. Currently there are three PSWs on each of the other three units with a float position that moves between them allowing staff to balance the workload in order to meet the residents’ needs. Removal of the fourth PSW on the day shift on the secure unit would mean that the float would then move about four units instead of three. Without the fourth PSW on the secure unit and the need to float over four units instead of three there is concern that interventions required through resident care plans will not be timely. As an Finance Committee – 2013 Budget Presentation January 7, 2013
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example, on one unit 21 out of 32 residents require staff assistance for transferring with 12 of those residents requiring two staff each time. Think about how many times a resident could be transferred in a day shift – getting up in the morning; each time he/she wants to use the toilet; to and from the bath/shower; to and from bed again if he/she has a nap. When there are four PSWs on the day shift staff work in pairs to ensure timely transferring. Without the fourth PSW residents do have to wait to be transferred until a PSW is available to assist. Another area of concern is meal service. Some residents are totally dependent upon staff for feeding with some being fed in their rooms, not in the dining room. On the secure unit alone eight residents require the assistance of staff for feeding; four on 2North; three on 2South and three on 1South. This does not include those residents who need to be supervised. Reducing PSW staffing will result in some residents waiting to be fed. Fairmount does not have a lot of incidents of resident aggression on its’ secure unit as staff are available to intervene between residents before situations can escalate. With fewer staff on the floor one can expect to see an increase in incidents of aggression. c) Maintenance flex hours would be eliminated The flex hours are allocated for activities that maintenance staff claimed cannot be completed during the regular maintenance work such as painting, grass mowing, etc. Option 1 is recommended. This puts the onus back on staff to come to work and will provide leverage to management when working with the union to come to an agreement that is sustainable. Financial Impact In recent years, the 2011 and 2012 County levies have been positively impacted by the uploading of Ontario Disability Support Program (ODSP) and Ontario Works (OW). In 2012 the requisition to the Townships was further reduced by an arbitrary $200,000 allocation from working funds that was not directly related to a specific project or activity brought forward. This results in a 2.42% shortfall in 2013. Year 2007 2008 2009 2010 2011 2012
Budget requisition change 2.94% increase 2.91% decrease 2.94% increase 0.59% decrease 4.12% decrease 1.4% decrease
The current budget as presented is showing a levy increase of $8,546,776 which is a 3.21% increase in the requisition to the Townships over 2012. A breakdown of the increase is outlined in the following table.
Finance Committee – 2013 Budget Presentation January 7, 2013
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Requisition impact
2013 $
2012 $
General County
-177,411
-469,529
292,118
3.53%
144,102
160,000
15,898 55,720 200,000 20,500
0.19% 0.67% 2.42% 0.25%
General Government
2,083,075
2,099,847
-16,772
-0.20%
Governance Corporate County Capital
225,895 1,808,593 48,586
254,660 1,760,937 84,250
-28,765 47,656 -35,664
-0.35% 0.58% -0.43%
Emergency Management Transportation Social Housing Social Services Fairmount Home Land Ambulance Health Unit Library Planning & Development Other
9,600 0 785,020 1,287,820 1,046,072 1,550,416 690,736 765,796 365,652 140,000
10,850 0 759,384 1,288,133 954,599 1,525,389 677,951 753,678 540,779 140,000
-1,250 0 25,636 -313 91,473 25,027 12,785 12,118 -175,127 0
-0.02% 0.00% 0.31% 0.00% 1.10% 0.30% 0.15% 0.15% -2.11% 0.00%
Levy change
8,546,776
8,281,081
265,695
3.21%
Investment Revenue reduction (POA) 2012 Wrk fund Trsf Transfer to reserve - capital replacement
Requisition Change $ %
Sustainability Implications Sustainability is dependent on good governance and stewardship of County resources. Organizations, Departments and Individuals Consulted and/or Affected County of Frontenac Staff Kingston Frontenac Public Library Kingston-Frontenac-Lennox and Addington Public Health Unit
Finance Committee – 2013 Budget Presentation January 7, 2013
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Report 2013-013 COMMITTEE REPORT To:
CHAIR AND MEMBERS OF THE FINANCE COMMITTEE
From:
Elizabeth Savill CAO
Prepared By:
Marian VanBruinessen Treasurer
Date Prepared:
December 31, 2012
Date of Meeting:
January 7, 2013
Re:
Financial Committee – Reserve and Reserve Funds
Recommendation RESOLVED THAT Council of the County of Frontenac receive this Financial Services – Reserve and Reserve Funds Report for information only.
Background Reserves and Reserve Funds are financial management tools that are an essential part of a sound fiscal policy to address long-term objectives. The ultimate goal is to fully fund the annual capital plan through current reserves while delivering efficient, effective programs to the ratepayers of the County. The key to reserve policies and planning is to balance current and future requirements. Sound program and financial planning would accommodate future growth while maintaining acceptable tax rates. A reserve is unrestricted and is appropriated from net revenue at the discretion of Council after the provision for all known expenditures. The primary source of revenue from reserves is from current operations, usually surpluses at year-end or as a deliberate segregation during budget deliberations. Reserves are sometimes referred to as “rainy day funds” used to mitigate fluctuations in economic factors, changes in government funding, unanticipated events and contingent liabilities. However, they are also used to accumulate funds in order to finance large projects to avoid debt financing or large swings of the tax levy. Reserve Funds differ from reserves in that they are segregated and restricted to meet a specific purpose as defined by the Municipal Act or at the direction of Council.
Financial Committee – Reserve & Reserve Funds January 7, 2013
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Comment The County has a number of reserves and reserve funds which provide a stable foundation for the County and allow County Council to mitigate impacts on the tax levy as a result of unusual budget requirements. The reserves and reserve funds retained by the County ensure that it can take advantage of opportunities and not be jeopardized by unanticipated costs or economic downturns.
Key Points
Reserves provide the capacity to achieve tax stability and contribute to the orderly provision of services. Municipal budgets are historically annual planning documents. In the absence of a longer term capital and strategic plan, reserves provide the County with the mechanism to smooth the effects of unanticipated changes.
Working Fund Reserves provide the capacity to deal with cash flow requirements and unanticipated expense over the year. The timing of revenues and expenditures can result in cash shortfalls. Municipalities can undertake short term borrowing to cover these periodic deficits or use reserves. The County covers any shortfalls through the working fund reserve. Currently the County budgets its shared costs with the City of Kingston on weighted assessment information from two years prior. When the accounts are reconciled at the end of that budget year a revised weighted assessment is utilized based on one year prior. The County weighted assessment has, over the past few years, been increasing more quickly than the City weighted assessment. As a result, the County’s actual share of social service, child care, and land ambulance can be higher than budget, but this shortfall is offset through the working fund reserve. The recent paramedic contract provides for post retirement benefits, the actual cost of which will be determined by an actuary. However the County can mitigate the levy impact of this new cost through the use of reserves.
No standard “rule of thumb” has been determined as to the right balance of working fund reserves. Various practices exist. These include, a percentage of annual operating expenditures (anywhere from 5% to 25%), a full month operating expenditure, or up to three months’ operating expenditure. This is a topic that has not been explored jointly by municipal treasurers.
Offsetting annual operating expense with reserve transfers is a risky practice, unless undertaken in a planned fashion. The County has in the past embarked on strategies to phase in reserve allocations to smooth the tax rate impact as opposed to a one-time infusion which results in huge tax rate variances year over year.
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During the 2012 budget deliberations County Council determined that $200,000 should be utilized to offset the County levy. This results in a 2.42% levy shortfall in 2013 which will need to be levied or mitigated. However this is not a sustainable strategy.
Reserve balances have provided the opportunity to accommodate changes in accounting practice and provide adequate replacement reserves for capital without affecting the levy.
Planning is the key to facilitating the appropriate reserve balance. Taking the opportunity to look ahead and anticipate the realities on the horizon will provide a reasonable basis on which to determine a course of action. For example, in Land Ambulance there are decisions to be made with respect to the location and ownership of bases in the Parham/Sharbot Lake area and in the City. An assessment of the Wolfe Island Volunteer service is required given impending legislation. In terms of Fairmount, an assessment of the implications of an aging workforce and succession planning is required. Human Rights legislation might dictate greater need to fund accommodated positions. In considering longer term sustainability, Council might see the value in undertaking projects jointly to achieve economies of scale and having reserves to support these initiatives will provide that opportunity. The following is a review of each of the reserves and reserve funds, the rationale for their establishment and their impact on the future of the County. Appendix A provides a summary listing of the reserves and reserve funds. As the County provides services which are cost-shared with the City of Kingston, some of the reserves are funded through joint contributions. These reserves are prefaced in their title by JOINT. General County reserves are prefaced by FRC, Fairmount by FMT and Land Ambulance by FPS. FRC Working Fund Reserve Purpose: Established to provide cash flow for operations resulting from unexpected expenditures to eliminate the requirement to borrow funds to meet immediate obligations. History: Allocations to and from the Working fund have been undertaken annually. Council has utilized the Working Fund Reserve to mitigate the impact of the requirements of capital replacement and to arbitrarily lower the tax rate. FRC Stabilization Reserve Purpose: Established to mitigate any unforeseen downturns in the economy and the potential budget implications this might entail. History: Allocations have been made annually. Proposed 2013: a) No additional allocation End value: $975,000
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FRC Strategic Projects Reserve Purpose: Established to ensure there were funds available should a large strategic project arise or to provide the ability to take advantage of unforeseen opportunities requiring a County contribution. Proposed 2013: No allocation for 2013 End value: $170,000 FRC Capital Purpose: This reserve will provide for County capital vehicle and equipment requirements. The replacement cost of buildings is not provided for by the replacement reserve. Proposed 2013: A reassessment of requirements was undertaken in 2012. As a result, it was identified that $800,390 should be in the FRC Capital replacement reserve by the end of 2013, requiring a catch up contribution of $225,746 in 2013 Ongoing annual contributions for the next 9 years ranges between $185,000 and $203,000. To mitigate the impact of the increased allocation it is suggested that $117,246 be transferred from the Working Fund reserve in 2013. In subsequent years, the Working Fund transfer utilized to mitigate this allocation for capital equipment such that the increase to the levy would not exceed $20,500.
County of Frontenac Contribution to Capital Replacement Reserve*** Year
Annual contribution to replacement reserve
2012 2013 2014 2015 2016 2017
Transfer from working fund
88,000 225,746 183,346 188,928 189,344 190,394
117,246 54,346 39,428 19,344
to levy
88,000 108,500 129,000 149,500 170,000 190,500
***Please note that as indicated in the Capital Plan there is no provision for the replacement of Buildings included in this allocation
End value: $800,390 FRC Library Reserve Purpose: This fund was developed when the County learned that the library anticipated capital projects for which the City was reserving its share separately. Financial Committee – Reserve & Reserve Funds January 7, 2013
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History: It has been used to support vehicle purchases and expansion of the IT system. Proposed 2013: The library has indicated that an allocation of about $31,000 annually should be adequate to provide for the County’s share of capital requirements in the future. The library has indicated that it will require $19,500 for capital in 2013. End value: $131,717
FRC Land Use Planning Purpose: To provide for liabilities incurred as a result of the County’s involvement in Land Use Planning. History: The County is responsible for subdivision approval. Although we do require that applicants provide funding for any OMB activity that they might generate, the County recognized that in some circumstances the County might be faced with additional Land Use planning costs. Proposed 2013: Understanding the County’s responsibilities in Land Use planning and the possible future requirements, it is suggested that $50,000 be allocated to this reserve annually. End value: $226,159 FRC GIS Project Reserve Purpose: To provide for the future requirements of the GIS Project. History: This reserve was established in 2010. Proposed 2013: An allocation of $11,000 from the FRC Working Funds. End value: $44,000 FRC Social Housing Out of Scope Reserve Purpose: Established to provide for the capital costs incurred in social housing projects in the County which are 100% County costs. History: Allocations of $25,000 have been made annually. Proposed 2013: An allocation of $25,000 to equal prior year contributions is recommended. In 2012 the County will be required to pay $10,000, the second of 10 installments on an interest free loan provided to the Verona units of the Kingston Frontenac Housing Corporation. End value: $419,400 FRC Ontarians with Disabilities Reserve Purpose: The County established this reserve to provide for the retrofits that will be required as a result of the AODA legislation. The requirements will include structural changes as well as adjustments in IT and furnishings. Proposed 2013: An allocation of $10,000 has been proposed for this reserve. Financial Committee – Reserve & Reserve Funds January 7, 2013
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End value: $55,000 FRC Land Acquisition Reserve: Purpose: The County established this reserve to provide for the acquisition of land required to address the discontinuity issues of the Frontenac K&P Trail and has been used to support legal counsel in regard to this acquisition. Proposed 2013: An allocation of $20,000 has been proposed for this reserve from the Working Fund Reserve End value: $77,654 FRC 150th Anniversary Reserve Purpose: The reserve is proposed to support the 150th anniversary celebrations in 2015. Proposed 2013: An allocation of $30,000 has been proposed for this reserve and will be transferred from the FRC Working Fund Reserve End value: $60,000 FMT Working Fund Reserve Purpose: Established to provide cash flow for Fairmount operations and to eliminate the requirement to borrow funds to meet immediate obligations. Projects, not completed in one budget year will be funded from an allocation from this reserve in the following year. Proposed 2013: No allocation is anticipated to this account. This fund will be utilized to mitigate the County requirements for the Capital replacement reserve, $71,169. End value: $526,825 JOINT FMT Severance Reserve Purpose: To provide for requirements related to the termination of employees. History: The amounts in and out of this fund fluctuate depending on the labour requirements. Proposed 2013: An allocation of $30,000 is proposed with an anticipated requirement for $56000 in 2013. End value: $95,683 JOINT FMT Operations Reserve Purpose: To provide for requirements related to periodic contracts. History: This reserve was established in 2010. It provides for contracts that arise periodically, but are not required annually, to smooth the budget impact. The duct cleaning contract for example is required every five years. Proposed 2013: An allocation of $9,000 is proposed. Financial Committee – Reserve & Reserve Funds January 7, 2013
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End value: $36,000 FMT Capital Reserve Purpose: Established to provide for capital replacement. History: This reserve was first funded through modest annual transfers of $21,000 were taken from the FMT Capital Reserve Fund. In 2010 when the PSAB asset inventory process was complete the fund was brought up to reflect the County’s share of capital replacement requirements Proposed 2013: A review of the capital requirements for Fairmount Home revealed that by the end of 2013 the County should have allocated $831,862 to a capital replacement reserve for its share of future requirements. The 2013 contribution would have been $142,337. It has been recommended that $71,169 be transferred from the Fairmount Working Fund Reserve to mitigate the impact of this requirement. End value: $831,862 FRC Frontenac-Howe Islander Ferry Revenue Reserve Purpose: Established as a result of the 2004 agreement with the Ministry of Transportation for the Frontenac-Howe Islander Ferry service which allows an amount of up to 5% of operating expenses to be reserved. History: The agreement recognizes the consolidation of fees and fares for both ferries. To mitigate the variances in fees and fares collected, MTO agreed that the County could retain up to 5% of the Operating costs in a reserve. This will provide for shortages related to the County or Township share of the expenditures. Proposed 2013: The allocation or reduction depends on the year end operating revenue and expenses. End value: $42,612 FPS General Reserve Purpose: established to provide for the uncertainty as to the requirements for land ambulance and the Province’s contribution rate. History: No additional contribution has been made since 2005. Proposed Future: With a number of longer term capital projects on the horizon, this will provide the opportunity to fund the County’s share of these projects with minimal impact on the tax levy. End value: $394,217 JOINT FPS Vehicle Replacement Reserve Purpose: Established to provide for the ongoing replacement of vehicles based on the estimated useful life of those vehicles History: This reserve was set up when the service was transferred to the County.
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Proposed 2013: The required allocation in 2013 is $527,300 and $453,700 will be used for vehicle replacement in 2013. End value: $453,313 JOINT FPS Equipment Replacement Reserve Purpose: Established to provide for the ongoing replacement of equipment based on estimated useful life. History: This reserve was established when the service was transferred to the County. Proposed 2013: The required allocation in 2013 is $209,975 and $171,660 will be used for equipment replacement in 2013 End value: $697,166 JOINT FPS Severance Reserve History: This reserve was established when the service was transferred to the County. The Ministry of Health and Long Term Care provided severance funding that it had accrued to the date of download. Subsequent County contributions provided for requirements inherent in the historical contracts with Hotel Dieu and Parham Ambulance Services until a contract was negotiated with the County. The current contract does not have the same liability for termination/retirement payments, however there are legislated termination requirements. Proposed 2013: No adjustments are proposed for this reserve. End value: $351,026 JOINT FPS Other Projects Reserve Purpose: Established to provide for new land ambulance capital projects. History: By 2009 most of the land ambulance cross border billing contracts were resolved. This liability had been accrued since 2002 on the basis of an estimate of total cost per call, and anticipating payment for all calls. Final contracts are primarily based on a standard cost per call and the County was successful in its assertion that repatriation calls should be paid for by the municipality of residence for that call. As a result a substantial surplus was realized and MOH indicated that its share of the funding for this liability could be transferred to a reserve for special projects. Proposed 2013: The Northern Land Ambulance base project will utilize the remaining funds in this reserve. End value: $0 JOINT FPS NEER Reserve Purpose: This is a new reserve proposed for 2011, utilizing funds raised for the NEER (WSIB New Experimental Experience Rating) assessment and not utilized in 2012. History: Workers Safety Insurance Bureau reconciles claims and contributions over a 4 year period. This can result in a surcharge or a rebate. To smooth the effect of this reconciliation Financial Committee – Reserve & Reserve Funds January 7, 2013
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Proposed 2013: No additional allocation in 2013 End value: $153,015 FRC Federal Gas Tax Reserve Fund Purpose: Established to provide for projects support by the Federal Gas Tax Agreement (FGT). History: The FGT Agreement requires that the FGT funds transferred to the municipality are held in a separate fund. The County has undertaken an Integrated Community Sustainability Plan process which now forms the basis for FGT funds disbursement. Proposed 2013: The County receives FGT funding to 2014 of $817,734 annually. The current budget outlines projects totaling $956,331 from Federal Gas Tax as well as a transfer of $625,000 to the Townships for infrastructure requirements End value: $1,749,871 FRC Investing in Ontario Reserve Fund Purpose: Established with Provincial funding to provide for County capital projects. History: The Investing in Ontario funds are to be held in a separate fund and can only be used for capital projects. The County approved an allocation of these funds in 2008, but revised the allocation by resolution in August 2010. These projects included Fairmount Capital Projects ($200,000), the K&P Trail ($300,000), Green initiatives($416,000) and Broadband funding ($365,000). In 2011 funds were expended for the K&P Trail bridge engineering study and for the Sydenham and Palace Road solar panel projects. Proposed 2013: projects.
In 2013 it is proposed that $248,000 be utilized for Green energy
End value: $139,589 FMT Capital Reserve Fund Purpose: Established to provide for Fairmount capital redevelopment requirements. History: This fund was initially established to provide for the capital requirements of the rebuild. The project was finally supported through a debenture and the County has drawn $125,000 annually to offset part of its contribution to the debenture. Proposed 2013: $125,000 will be drawn from this reserve annually to offset the debenture cost. It is also proposed that $440,000 be transferred in 2013 for the auditorium renovation. End value: $1,542,752 FMT Capital Campaign Reserve Fund Purpose: Established to provide for donations related to Fairmount capital redevelopment requirements. Financial Committee – Reserve & Reserve Funds January 7, 2013
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History: This fund was initially established as the repository for the Fairmount Redevelopment Capital Campaign donations. Donations received subsequent to the end of the campaign and which were designated for the redevelopment have been deposited in this account. Proposed 2013: As funds were donated specifically for Fairmount Home major capital building renovations, the allocations must reflect this purpose in the future and these funds could be used for the Fairmount Home Auditorium renovation planned for End value: $0 JOINT FMT Donations Reserve Fund Purpose: Established to provide for benefit of the residents. History: This fund is supported by donations from various sources and is meant to be used for the benefit of the residents. Fairmount Residents’ Council makes recommendations for the use of these funds. Proposed 2013: No requirements identified in 2013 End value: $195,437 JOINT FMT Pathways Reserve Fund Purpose: Established to provide for maintenance of the pathways. History: This fund is supported by donations from various sources for the maintenance of the Pathways behind Fairmount Home. Proposed 2013: Work on the pathways in 2013 require a transfer of $5,000. End value: $38,172 Sustainability Implications Sustainability is dependent on good governance and stewardship of County resources. Organizations, Departments and Individuals Consulted and/or Affected Senior Management Team, County of Frontenac
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Organizational Charts
- Emergency and
Director of Emergency and Transportation Services/ Chief of Paramedic Services
Frontenac Paramedic Services
Frontenac-Howe Islander Ferry Service Administrative Clerk
Executive Assistant Administrative Assistant
Deputy Chief Operations
Deputy Chief Performance Standards
Supervisor Operations
Supervisor of Performance Standards
Logistics Clerk
County of Frontenac Organizational Chart (Emergency & Transportation Services) – 12-01-01
Performance Standards Assistant Clerk
Ferry Working Foreman
Ferry Operators
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Paramedics (EMA, ACP, PCP)
Marine Services Supervisor
Organizational Charts
- Emergency and
Administrator of Fairmount Home
Administrative Clerk Executive Assistant Interdisciplinary Assistant Receptionist
Medical Director
Attending Physicians
Coordinator of Religious and Spiritual Care
Director of Resident Care RPN Restorative Care
Physiotherapy Services
Nurse Practitioner
Dietary Supervisor
Documentation Assistant (2)
Assistant Director of Care Registered Nurses
Occupational Therapist
Volunteer Coordinator
Rehabilitation Assistant
County of Frontenac Organizational Chart (Fairmount) – 12-01-01
Dietician
Assistant Cooks
Lead Hand
Maintenance Assistants
RPNs
HCAs/PSWs
Dietary Aides
Housekeeping Aides
Laundry Aides
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Recreationists (2)
Manager of Environmental Services
