Niagara Region 2011 Budget January 13, 2011 Budget Review - - PowerPoint PPT Presentation
Niagara Region 2011 Budget January 13, 2011 Budget Review Committee of the Whole 1 Agenda 1. Overview of Niagara Regions Budget Process 2. Public Engagement Session November 18, 2010 3. Operating Budget 4. Capital Budget 5.
January 13, 2011 Budget Review Committee of the Whole
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Planning
Conservation Authority
Economic Development Corporation
Regional Council Regional Chair Corporate Services Committee Integrated Community Planning Committee Chief Administrative Officer Commissioner of Integrated Community Planning Medical Officer of Health Commissioner of Corporate Service Commissioner of Public Works Commissioner of Community Services Public Health and Social Services Committee Public Works Committee Niagara Peninsula Conservation Authority Niagara Economic Development Corporation Niagara Regional Housing Police Services Board
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Niagara Region property taxes fund services in your community (Regional Levy = $282M)
Your property taxes are divided into three areas: Niagara Region Local City / Town School Board / Education
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Niagara Region's budget has two components, the operating budget ($862M), which is similar to your day-to-day costs like gas, groceries or phone bill and the capital budget ($132M) which is like your longer-term investments, similar to your car or house. The Operating Budget pays for the daily business of the Niagara Region and its boards and agencies. This budget pays for programs and services, including the staff to deliver those services, supplies and repayment of debt for major projects. The Capital Budget is the annual plan for the purchase of capital assets, such as: roads, water treatment plants, sewers, buildings, machinery and equipment.
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ITEM: TIMING: Budget Approval : To accommodate local municipalities First Quarter Capital Budget As soon as possible Water and Wastewater: To accommodate local municipalities First Quarter
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Guideline Development & Approval May/June Budget Development September Corporate Services October Budget Review October/Nov Budget Approval December/Jan
collaboration with Corporate Services) and submission to Corporate Services
testing
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Meeting Dates Topic/Discussion BRCOTW July 2010 2011 budget guidance September 2010 Council update July – October 2010 Departments develop budgets CMT & ABC leads Between May & December 2010 11 CMT budget meetings held 9
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Meeting Dates Topic / Discussion
Regional Council July 15, 2010 2011 budget guidance approved 1.4% Budget Review Committee of the Whole September 16, 2010 Update of 2011 known impacts, risk,& opportunities and overview of public engagement process Public Engagement #1 November 18, 2010 Niagara Region overview + Q&A session Public Engagement #2 November 24, 2010 Water and Wastewater Open House Budget Review Committee of the Whole (Public participation meeting) January 13, 2011 Budget discussion
Budget Budget Review Committee of the Whole (Public participation meeting) January 27, 2011 Budget discussion
Standing Committees February 1 & 2 Review department budgets – operating and capital Public Engagement #3 February 9 , 2011 Review draft budgets – public consultation Budget Review Committee of the Whole (Public participation meeting) February 17, 2011 Approval of Water and Wastewater rates Budget Review Committee of the Whole (Public participation meeting) February 24, 2011 Proposed Budget discussion
Budget Review Committee of the Whole (Public participation meeting) March 10, 2011 Operating Budget approval
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– Levy should increase no more than taxpayers income growth and assessment growth combined
– Responsible budgets should be transparent, accessible and easily understood, and respectful to the taxpayer
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$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 2004 2005 2006 2007 2008 2009
After Tax Income Property Taxes & Rate Programs Consumption Taxes Income & Employment Taxes
*Source – Median total income by family obtained from Statistics Canada (St. Catharines- Niagara (ON)) CMA
6.2% 6.0% 6.0% 6.2% 6.0% 5.5%
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0% 1% 2% 3% 4% 5% 6% 7% 8% 2007 2008 2009 2010 2011
2002-2007 2003-2008 2004-2009 2005-2010 2006-2011
Five year rolling average Regional Increase
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0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 2007 2008 2009 2010 Assessment Growth Taxpayer Income Growth Assessment & Income Growth guidance 15
0% 1% 2% 3% 4% 5% 6% 7% 8% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Ten year historical tax levy after assessment growth % increase
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4,000 6,000 8,000 10,000 12,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: OW CMSM Expenditure Report
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Close to 10,000 people (5,456 households) are on the affordable housing waiting list. A 45% increase in waiting list since 2002 - 27% increase in the last three years
2,000 3,000 4,000 5,000 6,000 2003 2004 2005 2006 2007 2008 2009 2010 18
19 4% 6% 8% 10% 12% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Canada Ontario Niagara
Source: Statistics Canada
(millions)
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200 300 400 500 600 700 800 900 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Millions
Agricultural & residential Business & commercial Industrial Government & institutional Source: Building Permit Values
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400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: CMHC Housing Observer
and 147 viewed the web stream
consultation in Niagara, include:
– Hold special meetings where members of the public can present their ideas on the budget for Council’s consideration – more briefing sessions held in locations throughout the region – have sessions available online for people to watch, ask questions and provide input
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2010 2010 Gross Net Description Expenditure Expenditure Regional Departments 495,737,714 134,872,749 Non-Dept Expenses 16,717,023 16,337,023 Outside Boards & Agencies 196,681,618 152,734,786 Total Revenue Source
Tax Levy Impact (Full Levy) 709,136,355 282,549,699 Self Supporting – Requisitions SS Wastewater 61,391,169 59,391,038 SS Water 44,541,100 42,018,284 SS Waste 47,141,508 33,122,337 153,073,777 134,531,659 Tax Levy Impact & Self Supporting 862,210,132 417,081,358 Requisitions
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Final Actual Surplus Approved Net Expenditure Surplus/(Deficit) Levy $ % December 31, 2008 273.6 M 255.2M 18.4M 6.7% December 31, 2009 280.2 M 270.3 M 9.9M 3.5% Change in levy compared to prior year levy 2.4% Change in levy compared to prior year actual net expenditure (levy less surplus) 9.8% Change in gross budget expenditure compared to prior year actual gross budget expenditures 2.3% December 31, 2010 282.6 M Change in levy compared to prior year levy 0.8% Change in levy compared to prior year actual net expenditure (levy less surplus) 4.5% Change in gross budget expenditure compared to prior year actual gross budget expenditures 2.4%
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($Millions)
Agencies & Non-Departmental $5.4 investment earnings $2.0 lower tax write-offs, supplemental and PILs than anticipated $0.5 POA surplus $1.5 NRH surplus Sub Total $9.8 Departmental $2.1 additional OMPF funding from 2008 reconciliation ($3.1) Social Assistance short fall from increased case loads ($1.3) Transportation shortfall due to winter control costs ($0.6) EMS shortfall $3.0
vacancies, other spending reductions to meet the Regional global budget target)
Sub total $0.1 Total $9.9 26
2008 ($ Millions) 2009 ($ Millions) 2010 ($ Millions)
Upload actual 6.6 4.0 14.3 OMPF Allocation of Upload (8.3)
Plan 1.7 0.9
0.5 2.5
0.1 0.9
0.2
0.9
0.5
1.5
Back to taxpayers 4.4 1.2 2.0
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$ Millions %
$ 4.0 1.4 %
$14.3 5.1 %
$ 18.3 6.5 %
0.9 %
0.6 %
$14.2 5.0 %
– Debt charges
2.4 % – Development Charges
0.03 % – Pan Am games
0.03 % – 2010 Police reduction
0.1 %
$ 7.0 2.5 %
– Police
1.8 % – ABC’s
0.1 % – Departments
0.4 %
$ 0.4 0.1%
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1.22%
0.90%
0.32%
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31 Millions
50 100 150 200 250 300
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Funds Available Funding Gap
$416 M Gap
$170 M avg. demand $128 M avg. resources
Millions 10 20 30 40 50 60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Growth Related Projects Gap
$ 16.3 M Average resources $ 33.2 M Average demand
$159 M gap 32
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0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 without uploading with uploading
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Note: Calculated as Debt Charges/Net Own Source Revenues Annual Repayment Limit: Province 25%; Region 20%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Forecast 2011 Forecast
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100 150 200 250 300 350 Millions Long-Term Debt Outstanding Debt Servicing Costs
Historical long-term debt balances
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Regional Roads $16.10 $14.70 $30.80 Niagara Regional Police Service $4.40 $7.30 $11.70 Information Services $4.00 $2.20 $6.20 Buildings & Equipment $1.90 $1.80 $3.70 Niagara Peninsula Conservation Authority $1.80 $1.80 Niagara Regional Housing $2.20 $1.10 $3.30 Planning $0.00 $0.30 $0.30 Waste Management $6.70 $6.70 Wastewater $45.60 $31.70 $77.30 Water $0.00 $12.30 $12.30 Total $82.80 $71.40 $154.20
Note: ISF projects = $27.3 million for Wastewater and $1.2 million for Roads
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100 150 200 250 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Millions Reserve Reserve Funds
As of Nov. 22/10
Historical long-term reserve balance
100 150 200 250 300 350 400 450 500 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Millions 39
Major Rating Factors
low financial flexibility
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Bond rating Standard & Poors AA Stable
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Facilities 8.4 Corporate Services/Technology 5.4 Community Services 1.6 Public Health 1.5 Roads 43.1 Fleet 1.7 Wastewater 35.1 Water 22.3 Waste 7.3 NPCA 1.5 NRH 4.0 Police 6.0 2011 Capital 137.8 2011 Financing 128.3 2011 Capital Gap 9.5 Unfunded Debt Allocation 6.9 Affordabilty Gap 16.4 Potential Impact on the Tax Levy 0.3%
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estimates to maintain the police force and fund Board