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

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2015 Budget 2015 Budget Pr Process

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Public Meeting March 24, 2015

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Agenda

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

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Budget Process and Public Input

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 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:

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Infrastructure Levy

• Increased contribution to capital infrastructure

Service

• New and improved services and service levels

Growth

• Maintain current service levels & respond to growth

Assessment Growth

• Additional tax revenue from new properties

Base Operating Adjustments

• Inflation and maintaining existing staffing levels
• Efficiencies, new/increased user fees

Budget Process – Building a Budget

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Step 1 Step 2 Step 3 Step 4

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Budget Process – Steps in Building a Budget

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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

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Budget Conte Budget Context xt

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Municipality Population 2011 Population 2006 Rank 2011 Rank 2006 Toronto 2,615,060 2,503,281 1 1 Montréal 1,649,519 1,620,693 2 2 Calgary 1,096,833 988,812 3 3 Ottawa 883,391 812,129 4 4 Edmonton 812,201 730,372 5 5 Mississauga 713,443 668,599 6 6 Winnipeg 663,617 633,451 7 7 Vancouver 603,502 578,041 8 8

CONTEXT – Population

Municipality Population 2011 Population 2006 Rank 2011 Rank 2006 Brampton 523,911 433,806 9 11 Hamilton 519,949 504,559 10 9 Québec City 516,622 491,142 11 10 Surrey 468,251 394,976 12 12 Laval 401,553 368,709 13 14 Halifax 390,096 372,679 14 13 London 366,151 352,395 15 15 500,000 1,000,000

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

Brampton Growth 1981-2011 and Projections to 2041 8

Source: 1981-2011, Statistics Canada Census; 2031-2041, Hemson Consulting

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Municipal Service Delivery – Services

• Arts and culture
• By-law enforcement
• Economic development
• Fire services
• Parks and recreation
• Provincial offences administration
• Planning new community developments

and enhancing existing neighbourhoods

• Public transit
• Snow removal
• Tax collection
• Local roads
• Ambulance services
• Housing services
• Police services
• Public health
• Regional roads
• Social services
• Waste collection and recycling
• Water treatment and supply
• Waste water collection and

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Municipal Service Delivery – Funding

Property Taxes & User Fees

• Fire Services
• Public Transit
• Planning New Developments
• Enhancing Existing Neighbourhoods
• Economic Development
• Parks and Recreation
• Arts and Culture
• Road Maintenance
• Snow Removal
• Animal Control
• By-law Enforcement
• Infrastructure Maintenance

Development Charges

• Expanded Transit System
• New/Expanded Roads
• New Recreation Centres
• Expansion of Existing Recreation

Centres

• New Parks
• New Libraries (limited)
• New Fire Stations (limited)
• Debt capacity allows infrastructure

ahead of growth

• Debt service payments charged

back to developers

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Facts a acts and Figur nd Figures es

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2014 Residential Property Tax Bill – Total

12 City of Brampton $1,742 Hospital Levy $50 Region of Peel $1,570 School Boards $738

* Based on 2014 average household with an MPAC assessed value of $364,000 (Brampton)

$4,100 Total 2014 Residential Tax Bill

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2014 Current Budget – Where City Taxes Go

18.3% 16.7% 14.8% 8.0% 7.1% 6.3% 5.9% 4.4% 4.2% 2.5% 2.1% 2.0% 2.0% 2.0% 0.9% 2.8% Fire & Emergency Services Public Works Transit Parks Maintenance & Operations Recreation Contribution to Capital Reserves Buildings & Property Mgmt Corporate Services Brampton Public Library Grant Financial Administration Human Resources Planning, Design & Development Economic Dev't & Communications Arts, Culture & Theatres Mayor & Members of Council Peel Memorial Hospital Levy

$1,792 City Portion 2014 Residential Tax Bill

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2014 City Budget – Property Tax Impact

* Cost on property tax bill based on average home with a 2014 assessed value of $364,000 Labour Other Expenses Revenue Net 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 $

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1,906 $ 10 $ Brampton Public Library

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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 2014 Budget ($ thousands) City TOTAL

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(1) 3 Bedroom, 1200 sq ft (2) 4-5 Bedroom, 3000 sq ft

Source: 2014, BMA Management Consulting Inc.

SINGLE DETACHED (1) Markham $4,825 Vaughan $4,360 Oshawa $4,013 Mississauga $3,984 Whitby $3,854 Hamilton $3,747 Brampton $3,657 Oakville $3,512 Richmond Hill $3,476 Burlington $3,410 SENIOR EXECUTIVE (2) Markham $6,206 Oshawa $6,087 Oakville $6,055 Hamilton $5,995 Whitby $5,962 Vaughan $5,931 Burlington $5,817 Mississauga $5,702 Richmond Hill $5,672 Brampton $5,598

Residential Tax Comparisons - Municipalities

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Source: 2014, BMA Management Consulting Inc.

Residential Tax Comparisons - Municipalities

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Municipality Assessed Value Tax Rate Tax Bill Mississauga 439,000 $ 0.9084% 3,984 $ Brampton 325,000 $ 1.1263% 3,657 $ Oakville 402,000 $ 0.8745% 3,512 $ Burlington 374,000 $ 0.9106% 3,410 $ Municipality Assessed Value Tax Rate Tax Bill Oakville 692,000 $ 0.8745% 6,055 $ Burlington 639,000 $ 0.9106% 5,817 $ Mississauga 628,000 $ 0.9084% 5,702 $ Brampton 497,000 $ 1.1263% 5,598 $

Higher tax rates do not automatically mean higher tax bills. Assessed Value x Tax Rate = Tax Bill The same house in different municipalities has a different assessed value. Municipalities with lower property values must have a higher tax rate in order to collect the same amount of tax revenue.

1200 sq ft home (Detached Bungalow), 3 bedroom 3000 sq ft home (Senior Executive), 4-5 bedroom

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Brampton Staffing and Population Levels

500 1,000 1,500 2,000 2,500 3,000 100,000 200,000 300,000 400,000 500,000 600,000

Full-Time Staffing Levels in Relation to Population

Population Full-time positions

2010: Introduction

• f Zum Bus Rapid

Transit (BRT) * 2014 staffing number estimated based on approved additions 1994 - 2000: No tax increases = reduced service levels

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Staffing History - 10 Year Trend

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0% 10% 20% 30% 40% 50% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Growth Budget Year

Cumulative Annual Percentage Growth

Combined Front-Line Population

Admin/Support

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Labour Costs as % of Total Expenses

55% 60% 65% 70% 75% 2009 2010 2011 2012 2013 Brampton Burlington Mississauga Oakville

Includes full-time, part-time and seasonal employees Source: 2009-2013 FIRs

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2014 Distribution of Labour Costs

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 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 $ millions Net Labour Cost Labour - Revenue Recovery

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7-Year Historical Revenues

Taxes – includes property taxes and payments in lieu of taxes (PILs) User fees and service charges Other – includes investment income, grants and subsidies and contributions from reserves

50% 55% 60% 65% 70% 75% 80% 85% 90% 2008 2009 2010 2011 2012 2013 2014

Taxes as a % of Total Revenues

0% 5% 10% 15% 20% 25% 30% 2008 2009 2010 2011 2012 2013 2014

Non-tax Revenue as a % of Total Revenues

As the percentage of revenue from other sources decreases, the percentage of revenue from property taxes increases.

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2015 Budget 2015 Budget Pr Process

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City of Brampton Organizational Structure

Chief Administrative Officer (interim)

• J. Corbett

Chief Plng & Infr Services Officer

• M. Ball

Chief Public Services Officer

• J. Patteson

Chief Operating Officer

• D. Cutajar

Chief Corporate Services Officer

• P. Simmons

Mayor and Council Representing Brampton Citizens and Businesses

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City of Brampton Strategic Plan and Vision

Brampton is a city that respects its roots, and is thoughtful about its future. Purposeful planning means places that connect and preserve—and spaces to play and live. In Brampton, city- building is planned, public and progressive. Our Strategic Plan reflects who we are and where we’re going. Let’s be proud of our city today, and excited for our future.

Our Vision

Brampton is a world-class city of opportunity. We honour the past. We build on success. We plan for a future that thrives.

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Current and Future Situation

• Provincially mandated as a high-growth municipality
• Infrastructure repair and replacement – plan to address gap
• Address unspent capital
• Improve accountability and transparency

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2015 Budget Pressures and Relief

Budget Pressures

• Compensation adjustments (Fire and Transit collective bargaining)
• New staff requests – address growth, maintain services, new service
• Inflation on non-labour expenditures
• Roads, parks and open space maintenance
• Operating costs for corporate facilities
• Reduced yield on investments
• Legislated requirements
• Infrastructure repair & replacement

Budget Relief

• Efficiencies
• Fuel costs (diesel)
• Property tax assessment growth (new homes and businesses)

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2015 Preliminary Operating Budget Tax Impact

Every additional $1,000,000 spent on City operations adds approximately $5.00 to the average property tax bill (based on 2015 average assessed value of $381,000)

$10 million $1 million

1% increase to the tax levy = $3.62 million

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2015 Budget Considerations

To achieve a zero property tax increase, services would need to be reduced and/or eliminated and no new service enhancements introduced.

• Preliminary 2015 Budget has been submitted, based on current service

levels and response to growth. To achieve a zero property tax increase, the following would need consideration:

• Delayed implementation of previously-completed capital projects
• Continued delay of administrative support to growing front-line

services

• Reduction or elimination of existing services
• Reduction of grants and subsidies
• Elimination or scaling back of planned new initiatives
• Increase user fees (fee for service)

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Investing in the Future

• Adequate investment towards future repair and replacement of City

assets / infrastructure is a key priority

• City has approximately $2.6 billion in assets, excluding land
• Useful life of assets declines over time (depreciation)
• Depreciation is widely accepted as the minimum recommended amount
• f funding to set aside annually for repair and replacement costs
• A 2% additional infrastructure levy each year for 10 years would allow the

City to set aside over 90% of depreciation expenses for that period

• There remains an infrastructure gap of over $1.2 billion, built up over the

past years

• Determination of an “adequate” level of contributions going forward is one
• f the goals of the long-term financial master plan (planned for 2015)

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Future Opportunities for Feedback

Mar 25 (8-9pm) Rogers Cable 10 Call-in Show

• (905) 848-5483
• @Cable10Live
• @RogersTVPeel

Through Mar 27 Online Questionnaire Through Mar 27 Online Property Tax (Budget) Allocator Mar 30 Budget Committee Deliberations Mar 31 Budget Committee Deliberations Apr 2 Budget Committee Deliberations Apr 8 Special Council Meeting to approve Budget

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Questions Questions? www.brampton.ca/budget