2015 Budget 2015 Budget Pr Process ocess Public Meeting March - PowerPoint PPT Presentation

2015 Budget 2015 Budget Pr Process ocess Public Meeting March 24, 2015 1

Agenda • Opening Remarks • Budget Process and Public Input • Budget Context • Facts & Figures • 2015 Budget Process • Questions (open mic) 3

Budget Process and Public Input To date, we have held numerous Council workshops and Budget Sub-Committee meetings to discuss process, pressures and opportunities for engagement. Information has been provided to the public through various media and two community dialogue sessions (one in February, one tonight). In response to the City’s largest ever communication and outreach effort, over 17,000 citizens have provided feedback through various channels. Following are upcoming opportunities for public input into the process: Mar 24 (evening) Community Dialogue #2 (Preliminary Budget Presentation) Mar 25 (8-9pm) Rogers Television Call-in Show Mar 30 Budget Committee Deliberations Mar 31 Budget Committee Deliberations Apr 2 Budget Committee Deliberations Apr 8 Special Council Meeting to approve Budget 4

Budget Process – Building a Budget Infrastructure Levy Step 4 • Increased contribution to capital infrastructure Service Step 3 • New and improved services and service levels Growth Step 2 • Maintain current service levels & respond to growth Assessment Growth • Additional tax revenue from new properties Step 1 Base Operating Adjustments • Inflation and maintaining existing staffing levels • Efficiencies, new/increased user fees 5 5

Budget Process – Steps in Building a Budget Step 1: Calculate expenses and revenues that are not flexible • Costs based on negotiated contracts, legal requirements and inflation • Offset by efficiencies, new and increased user fees and increased tax revenue from new properties Step 2: Respond to growth • Costs are based on providing the same levels of service in growth areas • Examples include transit, snow clearing, road maintenance, recreation programs Step 3: Introduce new and improved services and service levels • Examples include additional transit service, new facilities and programs, more frequent snow clearing, improvements to technology Step 4: Determine acceptable level of investment for the future • Costs are based on repair and replacement of roads, buildings and equipment • Considers maintenance, depreciation and replacement costs 6 6

Budget Context Budget Conte xt 7

CONTEXT – Population Brampton Growth 1981-2011 and Projections to 2041 1,000,000 500,000 0 1981 1986 1991 1996 2001 2006 2011 2031 2041 Total Population 149,090 188,498 234,445 268,251 325,428 433,806 523,911 842,800 899,000 Source: 1981-2011, Statistics Canada Census; 2031-2041, Hemson Consulting Municipality Population Population Rank Rank Municipality Population Population Rank Rank 2011 2006 2011 2006 2011 2006 2011 2006 Toronto 2,615,060 2,503,281 1 1 Brampton 523,911 433,806 9 11 Montréal 1,649,519 1,620,693 2 2 Hamilton 519,949 504,559 10 9 Calgary 1,096,833 988,812 3 3 Québec City 516,622 491,142 11 10 Ottawa 883,391 812,129 4 4 Surrey 468,251 394,976 12 12 Edmonton 812,201 730,372 5 5 Laval 401,553 368,709 13 14 Mississauga 713,443 668,599 6 6 Halifax 390,096 372,679 14 13 Winnipeg 663,617 633,451 7 7 London 366,151 352,395 15 15 Vancouver 603,502 578,041 8 8 8 8

Municipal Service Delivery – Services • • Arts and culture Ambulance services • • By-law enforcement Housing services • • Economic development Police services • • Fire services Public health • • Parks and recreation Regional roads • • Provincial offences administration Social services • • Planning new community developments Waste collection and recycling • and enhancing existing neighbourhoods Water treatment and supply • • Public transit Waste water collection and • Snow removal treatment • Tax collection • Local roads 9 9

Municipal Service Delivery – Funding Property Taxes & User Fees Development Charges • • Fire Services Expanded Transit System • • Public Transit New/Expanded Roads • • Planning New Developments New Recreation Centres • • Enhancing Existing Neighbourhoods Expansion of Existing Recreation • Economic Development Centres • • Parks and Recreation New Parks • • Arts and Culture New Libraries (limited) • • Road Maintenance New Fire Stations (limited) • • Snow Removal Debt capacity allows infrastructure • Animal Control ahead of growth • • By-law Enforcement Debt service payments charged • Infrastructure Maintenance back to developers 10 10

Facts a acts and Figur nd Figures es 11

2014 Residential Property Tax Bill – Total School Boards City of $738 Brampton $1,742 $4,100 Total 2014 Residential Tax Bill Region of Peel Hospital Levy $1,570 $50 * Based on 2014 average household with an MPAC assessed value of $364,000 (Brampton) 12 12

2014 Current Budget – Where City Taxes Go Fire & Emergency Services 18.3% Public Works 16.7% Transit 14.8% Parks Maintenance & Operations 8.0% Recreation 7.1% Contribution to Capital Reserves 6.3% Buildings & Property Mgmt 5.9% Corporate Services 4.4% Brampton Public Library Grant 4.2% Financial Administration 2.5% $1,792 City Portion Human Resources 2.1% 2014 Residential Planning, Design & Development 2.0% Tax Bill Economic Dev't & Communications 2.0% Arts, Culture & Theatres 2.0% Mayor & Members of Council 0.9% Peel Memorial Hospital Levy 2.8% 13

2014 City Budget – Property Tax Impact 2014 Budget ($ thousands) $ Cost on City TOTAL Property Other Net Labour Revenue Tax Bill Expenses Expenses Public Services $ 197,709 $ 59,592 $ (94,371) $ 162,929 $ 833 Plng & Infrastructure Services $ 65,948 $ 43,192 $ (21,701) $ 87,438 $ 447 Corporate Services $ 41,221 $ 16,544 $ (8,646) $ 49,119 $ 251 Office of Chief Operating Officer $ 7,111 $ 2,437 $ (354) $ 9,193 $ 47 Mayor and Council $ 2,509 $ 525 $ - $ 3,034 $ 16 General Government $ 3,125 $ 64,806 $ (54,595) $ 13,336 $ 68 Office of Chief Admin Officer $ 1,825 $ 81 $ - $ 1,906 $ 10 Brampton Public Library $ - $ 13,740 $ - $ 13,740 $ 70 Hospital Levy $ - $ 9,833 $ - $ 9,833 $ 50 City TOTAL $ 319,448 $ 210,749 $ (179,667) $ 350,530 $ 1,792 * Cost on property tax bill based on average home with a 2014 assessed value of $364,000 14

Residential Tax Comparisons - Municipalities SINGLE DETACHED (1) SENIOR EXECUTIVE (2) Markham $4,825 Markham $6,206 Vaughan $4,360 Oshawa $6,087 Oshawa $4,013 Oakville $6,055 Mississauga $3,984 Hamilton $5,995 Whitby $3,854 Whitby $5,962 Hamilton $3,747 Vaughan $5,931 Brampton $3,657 Burlington $5,817 Oakville $3,512 Mississauga $5,702 Richmond Hill $3,476 Richmond Hill $5,672 Burlington $3,410 Brampton $5,598 (1) 3 Bedroom, 1200 sq ft (2) 4-5 Bedroom, 3000 sq ft Source: 2014, BMA Management Consulting Inc. 15 15

Residential Tax Comparisons - Municipalities Higher tax rates do not Assessed Municipality Tax Rate Tax Bill automatically mean higher Value tax bills. Mississauga $ 439,000 0.9084% $ 3,984 Brampton $ 325,000 1.1263% $ 3,657 Assessed Value x Tax Rate Oakville $ 402,000 0.8745% $ 3,512 = Tax Bill Burlington $ 374,000 0.9106% $ 3,410 The same house in different 1200 sq ft home (Detached Bungalow), 3 bedroom municipalities has a different Assessed assessed value. Municipality Tax Rate Tax Bill Value Municipalities with lower Oakville $ 692,000 0.8745% $ 6,055 property values must have a Burlington $ 639,000 0.9106% $ 5,817 higher tax rate in order to Mississauga $ 628,000 0.9084% $ 5,702 collect the same amount of Brampton $ 497,000 1.1263% $ 5,598 tax revenue. 3000 sq ft home (Senior Executive), 4-5 bedroom Source: 2014, BMA Management Consulting Inc. 16 16

Brampton Staffing and Population Levels Full-Time Staffing Levels in Relation to Population 600,000 3,000 500,000 2,500 400,000 2,000 2010: Introduction 300,000 1,500 of Zum Bus Rapid Transit (BRT) 200,000 1,000 1994 - 2000: 100,000 500 No tax increases = reduced service levels 0 0 * 2014 staffing number estimated Population Full-time positions based on approved additions 17

Staffing History - 10 Year Trend Cumulative Annual Percentage Growth 50% Combined Front-Line 40% Population Growth 30% 20% 10% Admin/Support 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Budget Year 18 18

Labour Costs as % of Total Expenses 75% 70% 65% 60% 55% 2009 2010 2011 2012 2013 Brampton Burlington Mississauga Oakville Includes full-time, part-time and seasonal employees Source: 2009-2013 FIRs 19

2014 Distribution of Labour Costs Transit Fire & Emergency Services Maintenance & Operations Recreation & Culture Corporate Services Public Services (other) Planning & Building Plng & Infrastructure Servs… Enforcement & By-law Services Office of Chief Operating Officer Mayor & Council Office of Chief Admin Officer $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $ millions Net Labour Cost Labour - Revenue Recovery 20