Planning & Public Works Committee December 6, 2017 1 Budget - - PowerPoint PPT Presentation

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Planning & Public Works Committee December 6, 2017

Budget Process

• Council Information Session – November 15
• Health & Social Services – December 5
• Planning & Public Works – December 6
• Administration & Finance – December 7
• Council Approval – December 13

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Regional Taxes

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• 2018 Total Regional Taxes per $100,000 CVA is $305, increase of $6
• r 1.9% over 2017
• Tax impact based on a projected assessment growth of 1.5%
• 2018 Police Services Budget approved by the Police Services Board

requires a net expenditure increase of 3.5%, with a 2.0% tax impact after assessment growth

2018 Budget – Pg 18 Property Tax Impact

• f Regional Government Services

(Per $100,000 CVA)**

2017 2018 Change Actual Budget $ %

Regional Services 189 $ 192 $ 4 $ 1.9% Police Services * 110 112 2 2.0% Total Regional Taxes 299 $ 305 $ 6 $ 1.9% Schedule may not add due to rounding. * Approved by Police Services Board ** Based on projected 1.5% assessment growth

2018 Tax Supported Budget

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2018 Budget – Pg 24

$000s 2017 Approved Base Strategic Requested Budget Budget Investments Budget

Public Health Resources 2,285 $ 2,359 $

• $

2,359 $ 74 $ 3.2% 74 $ 3.2% Healthy Environments & Communicable Disease 5,116 5,247

• 5,247

131 2.6% 131 2.6% Healthy Families 5,917 5,873

• 5,873

(44)

• 0.7%

(44)

• 0.7%

Clinical Health Services 4,182 4,426

• 4,426

243 5.8% 243 5.8% Paramedic Services 18,594 19,473 963 20,437 879 4.7% 1,843 9.9% Children's Services 11,366 10,243

• 10,243

(1,123)

• 9.9%

(1,123)

• 9.9%

Employment & Social Services 6,557 6,262

• 6,262

(294)

• 4.5%

(294)

• 4.5%

Housing Services 37,114 35,930

• 35,930

(1,184)

• 3.2%

(1,184)

• 3.2%

Quality & Service Integration 6,334 6,313 280 6,593 (22)

• 0.3%

259 4.1% Services for Seniors 18,079 18,140 27 18,167 61 0.3% 89 0.5% Planning 12,182 13,084 134 13,219 902 7.4% 1,036 8.5% Economic Development 2,571 2,598

• 2,598

27 1.1% 27 1.1% Waste Management 41,404 42,111

• 42,111

707 1.7% 707 1.7% Road Operations 51,291 52,917 85 53,001 1,626 3.2% 1,711 3.3% Non-Program 14,288 18,454 455 18,909 4,166 29.2% 4,621 32.3% Boards & Agencies 10,031 10,436

• 10,436

405 4.0% 405 4.0% Net Regional Impact 247,310 253,865 1,945 255,811 6,556 2.7% 8,501 3.4% Assessment Growth (3,710) 1.5% Regional Levy Requirement 247,310 $ 253,865 $ 1,945 $ 255,811 $ 6,556 $ 2.7% 4,791 $ 1.9%

Schedule may not add due to rounding.

2017 Budget to 2017 Budget Net Operating Budget for Tax Supported Services (Excluding Police Services) Levy Requirement by Program 2018 Change in Budget 2018 Base to 2018 Requested

Utility Rates

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2018 Budget – Pg 19

• The 3.8% increase is the total of:



3.1% increase for capital financing of the State-of-Good-Repair program



0.7% increase to operate and maintain the system

• 3.8% has been reduced from the 4.5% target as a result of the asset

management plan and one-time savings and efficiencies

2017 2018 Budget Budget $ %

Water 420 $ 444 $ 24 $ 5.7% Wastewater 509 520 11 2.2% Total 929 $ 964 $ 35 $ 3.8% *Based on 0.0% consumption growth and 1.6% customer growth

Rate Impact On a Typical Household (250 m³ / Year)

Change*

Rate Trends

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Municipality 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average Halton 6.5% 6.7% 0.0% 4.1% 3.5% 4.8% 4.3% 4.9% 5.0% 5.1% 4.5% Toronto 10.2% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 8.0% 8.0% 5.0% 8.5% Peel 9.0% 6.1% 5.0% 9.1% 8.0% 7.0% 7.4% 7.0% 9.0% 4.3% 7.2% Durham 9.7% 7.6% 7.2% 4.5% 6.4% 8.4% 6.5% 5.0% 5.0% 3.6% 6.4% Hamilton 8.9% 4.5% 4.0% 4.3% 4.3% 4.3% 4.0% 4.2% 4.7% 4.9% 4.8%

Rate Revenue

• 2018 Budget continues to include 52.9 million m3
• The 2018 rate forecast includes a decline in

consumption in later years to address continuing trend of declining consumption per household

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307 314 298 282 272 265 259 257 248 242 239 230 227 226 216 217 215 214 361 351 333 341 305 320 281 276 275 275 280 254 245 251 261 243 241 240 100 150 200 250 300 350 400 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Budget 2017 Proj 2018 Budget m3

Halton Average Consumption per Residential Customer Base Seasonal

2018 Budget – Pg 195

Budget Highlights

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• Investments to Maintain Existing Infrastructure

79.5 75.3 105.5 70.8 91.5 134.5 144.5 121.1 127.1 108.9 136.3 64.8 81.3 89.0 96.5 105.0 112.5 119.6 125.8 135.6 140.4 148.8 78.1 88.2 98.3 109.5 120.1 135.7 143.8 158.6 168.6

$- $50 $100 $150 $200 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Capital Expenditure ($Millions)

Total Water and Wastewater State-of-Good-Repair

(including Basement Flooding Mitigation) State-of-Good-Repair 2018 Annual Operating Contribution* 2017 Annual Operating Contribution*

* Includes Gas Tax Transfers; Excludes Vehicles, New Meters and Water & Wastewater related Information Technology

2018 Budget – Pg 48

Ten-Year Operating Forecast - Rate

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2018 Budget – Pg 72

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Requested Budget

Net Program Impact ($000's) 197,117 $ 206,722 $ 216,957 $ 227,469 $ 238,468 $ 248,784 $ 259,376 $ 269,908 $ 280,734 $ 292,044 $ Annual Water Consumption m3 (000s) 52,913 52,913 52,913 52,913 52,913 52,421 51,934 51,452 50,974 50,500 Residential Bill (250 m3 p.a.) 964 $ 1,004 $ 1,048 $ 1,092 $ 1,138 $ 1,186 $ 1,236 $ 1,286 $ 1,337 $ 1,391 $ Annual % Rate Increase 3.8% 4.2% 4.3% 4.2% 4.2% 4.3% 4.2% 4.0% 4.0% 4.0% Rate Impact: State-of-Good-Repair 3.1% 2.5% 2.6% 2.5% 2.5% 2.0% 1.8% 1.7% 1.6% 1.5% Operating Expenses 0.7% 1.7% 1.7% 1.7% 1.7% 1.8% 1.9% 1.8% 1.9% 2.0% Consumption Change 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.5% 0.5% 0.5% 0.5%

129.43 $ 141.61 $ 65.83 $ (154.47) $ (42.04) $ 59.56 $ (50.61) $ (84.11) $ (12.25) $

Net Program Impact ($000's) 199,785 $ 211,164 $ 223,856 $ 236,544 $ 249,842 $ 263,782 $ 278,539 $ 292,746 $ 306,989 $ Annual Water Consumption m3 (000s) 52,913 52,913 52,913 52,913 52,913 52,913 52,913 52,913 52,913 Residential Bill (250 m3 p.a.) 977 $ 1,026 $ 1,081 $ 1,135 $ 1,192 $ 1,251 $ 1,312 $ 1,371 $ 1,429 $ Annual % Rate Increase 5.2% 5.0% 5.3% 5.0% 5.0% 4.9% 4.9% 4.5% 4.3% Rate Impact: State-of-Good-Repair 3.7% 3.4% 3.8% 3.5% 3.6% 3.6% 3.6% 3.2% 3.0% Operating Expenses 1.5% 1.6% 1.5% 1.5% 1.4% 1.3% 1.3% 1.3% 1.3% Consumption Change 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Rate Budget Forecast as Projected in the 2017 Budget Ten Year Operating Budget Forecast For Rate Supported Services Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

Ten-Year Capital Forecast ($million)

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2018 2019-22 2023-27 Total Rate Program: Water 94.8 $ 315.8 $ 584.9 $ 995.5 $ Wastewater 78.8 384.4 657.1 1,120.2 Sub-total 173.6 $ 700.2 $ 1,242.0 $ 2,115.7 $ Tax Program: Transportation 207.0 $ 677.0 $ 721.9 $ 1,606.0 $ Waste Management 2.7 12.9 25.2 40.9 Planning 22.1 75.3 76.8 174.2 Asset Management 15.2 44.0 18.8 78.1 Public Health & Paramedic Svcs 7.9 7.7 16.8 32.4 Social Services 0.7 2.8 3.5 7.0 Corporate Admin 5.5 19.1 24.8 49.4 Police 7.4 42.5 22.4 72.3 Sub-total 268.6 $ 881.5 $ 910.3 $ 2,060.4 $ Total 442.2 $ 1,581.6 $ 2,152.3 $ 4,176.1 $

Includes financing cost. Schedule may not add due to rounding.

$3.9 billion Planning & Public Works

Ten-Year Capital Budget Trends ($billion)

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2018 Budget – Pg 82

$1.1 $1.0 $1.1 $1.1 $1.4 $1.8 $1.7 $1.8 $2.0 $3.0 $3.2 $2.8 $2.6 $3.7 $3.8 $3.0 $3.2 $3.7 $4.1 $4.2

$- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

10-Year Plan Cost ($billion's)

Rate Capital Tax Capital - Region Tax Capital - Police

Ten-Year Capital Financing ($4.2 billion)

12 * * To be recovered from future development charges

Regional Reserves $1.9B (100.0%) State of Good Repair $1.9B (44.2%) Development Charges $1.6B (69.6%) Regional Interim Financing $0.7B (30.4%)* Growth-related Infrastructure $2.3B (55.8%)

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Ten-Year Capital Financing Roads & W/WW Development

Halton Region

Budget and Business Plan 2018

Public Works Department

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2018 Priorities

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Water

Completion of the long term water meter strategy to support Automated Meter Reading Completion of the replacement of 12,500 pulse meters and applicable large meters to increase bill accuracy

Wastewater

Addressing climate change through continued investment in infrastructure to ensure Halton’s resiliency Continue the targeted Downspout Disconnection program

Roads

Development of an Advanced Transportation Management System to improve the flow

• f traffic on

Regional roads Continue the LED streetlight conversion program

Waste Management

Continue the review of a new Solid Waste Master Plan Implement the acceptance of plastic bags and film in the Blue Box

Infrastructure

Continue the development and implementation of a comprehensive Asset Management Plan Begin the development of an integrated Water, Wastewater and Transportation Master Plan

Public Works Department – Tax Budget Summary

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2018 Budget – Pg. 172

$000s 2017 Budget Waste Management & Road Operations Gross Cost Subsidies & Revenue Corporate Charges & Financing Net Tax Impact Net Tax Impact Waste Management $ 48,291 $ (7,088) $ 907 $ 42,111 41,404 $ 707 $ 1.7% Road Operations 66,228 (371) (12,856) 53,001 51,291 1,711 3.3% Total $ 114,519 $ (7,459) $ (11,949) $ 95,112 $ 92,695 $ 2,418 2.6% FTE 78 77 1 1.3% 2018 Budget Change 2018-2017

2018 Budget Drivers – PW Tax

• Road Capital Financing- $1.7 million to address rising State-of-Good-

Repair needs based on Public Works Asset Management Strategy (PW-28- 17) ($726,000 increase in Federal Gas Tax Funding)

• Road Maintenance Contracts - $396,000 (3.4%) increase in Regional

and Local road maintenance contracts

• Hydro - $131,000 increase mainly for traffic signals and street lighting and

which incorporates the savings from the LED Conversion Project

• Road Operations Safety Technician- $85,000 Strategic Investment to

ensure continued operation of the Road Network System at expected levels and to maintain the Red Light Camera program

• Waste Management - $490,000 for the acceptance of plastic bags and

film in the Blue Box, minimizing litter on windy days and increasing diversion (net impact of $102,000 after contract savings)

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Performance Indicators - Roads

• The amount of lane kilometres has been growing and is projected to

grow by 1.4% in 2018

• Due to the increase in lane kms, the need for resurfacing has also

increased and is projected to almost double from 2016-2018

• The Region continues to add Active Transportation kms and will see

5 new kms added in 2017 and 32 new kms added in 2018. This is tied to the widening of the Roads.

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2018 Budget – Pg. 176

Roads Operations & Maintenance 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Projected Road Lane Kilometres 1,048 1,080 1,103 1,109 1,124 Lane KM of Road Resurfaced 9 21 25 35 46 Number of (lane) Kilometers of New Active Transportation Infrastructure on Regional Roads (On Road ATMP) 10 28 26 5 32

Performance Indicators - SWM

• Halton continues to maintain high waste diversion rates, extending the

life of the landfill

• Tonnage of Green Bin material reduced
• Volume of Solid Waste Collected has been relatively flat for the last few

years considering the growth. Essentially less garbage per household

• The average cost per tonne of material collected has increased due to

the recent contract awards

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2018 Budget – Pg. 174

Solid Waste Management 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Projected Residential Solid Waste Diversion Rate 58.2% 59.0% 58.3% 58.5% 59.0% Metric Tonnes of Solid Waste Collected 173 171 166 169 169 Average Cost / Metric Tonne of Materials Collected $129 $127 $136 $140 $144

Public Works Department – Rate Budget Summary

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2018 Budget – Pg. 205

$000s Water & Wastewater Services Gross Cost Subsidies & Revenue Corporate Charges & Financing Net Rate Impact Net Rate Impact Water Treatment 23,428 $ (1,664) $ 471 $ 22,235 $ 22,782 $ (546) $

• 2.4%

Wastewater Treatment 40,571 (2,300) 634 38,905 40,541 (1,636)

• 4.0%

Water Distribution 27,075 (1,961) (474) 24,640 24,545 95 0.4% Wastewater Collection 21,044 (1,324) 298 20,018 20,132 (114)

• 0.6%

Infrastructure Management 123,808 (10,271) (22,218) 91,319 80,711 10,607 13.1% Total 235,927 $ (17,521) $ (21,289) $ 197,117 $ 188,712 $ 8,406 $ 4.5% Growth* (1,234) $

• 0.7%

Rate Increase 7,172 $ 3.8% FTE 437 428 9 2.1%

* Includes 0.0% consumption growth and 1.6% customer growth

2018-2017 2018 Budget 2017 Budget Change

• Water and Wastewater State-of-Good-Repair Capital

 $17.5 million increase in the transfers to support the water and

wastewater state-of-good-repair capital program for a total of $95.5 million, including $3.8 million resulting from the realignment of large plant maintenance projects from the Operating Budget to the Capital Budget to better reflect TCA principles and increase program optimization

• Savings & Efficiencies



One-time savings and efficiencies including:



$5.6M in debt charges;



$163K in chemicals; and



$287K in technology costs



Hydro budget maintained at 2017 level due to participation of 4 treatment plants in the Industrial Conservation Initiative, eliminating a planned increase of $876,000

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2018 Budget Highlights – PW Rate

• Long-term Water Meter & Billing Strategy



Continue the replacement of 12,500 small pulse meters and applicable large meters; approximately 6,500 completed to date



Completion of the Long-term Water Meter & Billing Strategy for incorporation into the 2019 Budget recommendations



Complete the transition of meters to the Capital Budget with the movement of new meter installations in 2018

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2018 Budget Highlights – PW Rate

Performance Indicators - Water

• The size of the water distribution network continues to increase with the

growth of Halton Region and is anticipated to be 2,310 km by 2018

• The number of mainbreaks has been stable at approximately 110 per

year due to the continued investment in the SOGR

• Hydro consumption has been declining in the water treatment plants

from 2014 to 2016, 2018 will see an increase due to improvements in treatment processes

• Staff continue to do an excellent job in the achieving 100% compliance

ratings with respect to the treatment and distribution of drinking water

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2018 Budget – Pg. 208, 214

Water Treatment and Distribution 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Projected Number of km's of Watermain Operated and Maintained 2,218 2,232 2,238 2,274 2,310 Annual Number of Water Main Breaks 136 150 115 110 110 Hydro Consumption / Megalitre of Water Treated 494 468 457 472 476 Percent of Compliance to Drinking Water Standards 100% 100% 100% 100% 100%

Performance Indicators - WW

• Like water, the wastewater collection network continues to grow and

will reach approximately 1,955 km by 2018

• Staff continue to focus on weeping tile and downspout

disconnections and will disconnect 40 and 1,700 respectively in 2018

• Hydro consumption in the wastewater treatment plants has been

rising over the last few years due to the expansions of facilities to accommodate growth and process improvements to enhance the quality of the wastewater being discharged

24 2018 Budget – Pg. 211, 217, 218

Wastewater Collection and Treatment 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Projected Number of km's of Operated and Maintained 1,861 1,890 1,894 1,924 1,955 Number of Weeping Tiles Disconnected n/a 137 29 30 40 Number of Downspouts Disconnected n/a 1,072 1,678 1,700 1,700 Hydro Consumption / Megalitre of Wastewater Treated 584 685 621 598 651

2018 Strategic Investments

• Public Works Rate
• Project Manager II (Treatment) - $124,000



To oversee capital programming with the costs to be recovered from capital program, resulting in no additional net rate impact

• Instrumentation Technicians - $292,000



For three Instrumentation Technicians to meet service delivery and workload pressures, funded from base budget reductions for external contractors

• Millwrights- $390,000



For four Millwrights to meet service delivery and workload pressures, funded from base budget reductions for external contractors

• Laboratory Technician - $78,000



To support to all water and wastewater program areas through the testing and processing of drinking water and wastewater samples

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Halton Region

Budget and Business Plan 2018

Planning Services

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2018 Priorities

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Planning Services

Replenish the Green Fund in order to continue implementation of the Waterfront Master Plan Update the Regional Official Plan

Economic Development

New Halton Global Business Centre to deliver new programs and services to assist small and medium sized businesses to succeed in the global marketplace

Asset Management

On-going maintenance and management of Regional facilities and HCHC housing stock Continue to manage Fleet assets and related equipment and systems

Legal Services & Regional Clerk

Expand internal legal support for preparing and conducting mediation and/or litigation Continue to provide administrative support to Regional Council

Planning Services Budget Summary

28 2018 Budget – Pg. 167

$000s 2017 Budget Planning Services Gross Cost Subsidies & Revenue Corporate Charges & Financing Net Tax Impact Net Tax Impact Planning Policy Development & Implementation 3,276 $ (0) $ 39 $ 3,315 $ 3,105 $ 210 $ 6.8% Development Approval 6,740 (923) (99) 5,718 5,041 676 13.4% Environmental Protection 2,738 (247) (60) 2,432 2,345 87 3.7% Halton Region Museum & Heritage Service 1,751 (64) 67 1,754 1,691 63 3.7% Total 14,506 $ (1,235) $ (52) $ 13,219 $ 12,182 $ 1,036 $ 8.5% FTE 54 53 1 1.9% 2018 - 2017 2018 Budget Change

2018 Budget Drivers - Planning

• Greenlands Funding - $0.8 million base budget increase

funding for the Green Fund Reserve to support the Waterfront Master Plan

• Strategic Investments - Property Planning $134,000



to provide a Project Manager to develop a vision for the Region’s real estate holdings, manage processes required to develop these assets, and maximize opportunities to leverage corporate resources.

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Planning Services Capital Budget & Forecast

30 2018 Budget – Pg. 169

($ Millions) 2018 2019 2020 2021 2022 2023 - 2027 Total ROP Update & Implementation 1.35 $ 0.35 $ 0.35 $ 0.35 $ 2.00 $ 4.80 $ 9.20 $ Planning Litigation - OMB and Other Hearings 0.50 1.00 2.50 1.00 1.00 7.00 13.00 Burlington Waterfront Master Plan Implementation 6.50 2.72 16.00 0.80 0.80 13.85 40.68 Burloak Waterfront Park

• 0.55
• 0.55

Forest Management Program

• 0.06

0.08 0.05 0.07 0.30 0.55 20-Year Forest Management Plan

• 0.15

0.15 Assisted Housing Development 13.79 9.75 9.00 9.40 9.45 50.65 102.04 Halton Heritage Centre

• 8.00
• 8.00

Vehicle Replacement

• 0.03
• 0.03

0.06 Total 22.14 $ 22.46 $ 27.93 $ 11.60 $ 13.32 $ 76.78 $ 174.23 $

Schedule may not add due to rounding.

Planning Services Capital Program

Performance Measures

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• Halton has consistently ensured that 50% of the Region’s land is

maintained in the Natural Heritage System

• Halton is projecting to be on target in 2018 and will remain on target

in 2018 to attain the province’s Growth Plan intensification target of 40% of new residential development

• Number of Development Applications in 2018 will remain similar to

2017

Planning Services 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Projected 50% Percent of Region Maintained in Natural Heritage System Yes Yes Yes Yes Yes Percent of Growth in Intensification Areas 38% 36% 48% 40% 40% Number of Development Applications 838 878 786 800 800