CRP OV-1

2015 Business Plan and Budget

Corporate Overview

Budget Sub-CommitteeFebruary 11, 2015

CRP OV-2

Budget Process and Public Input

Feb 11 Budget Sub-Committee

Feb 17 Budget Sub-Committee

Feb 18 Budget Sub-Committee

Feb 18 (evening) Community Dialogue #1 (Introduction to Budget Planning)

Feb 19 – Mar 24 Radio, TV, print media stories and appearances

Feb 24 Council Workshop (Strategic Priorities)

Feb 24 – Mar 13 5 Tele-Town Halls (1 per ward pairing)

Mar 24 (evening) Community Dialogue #2 (Preliminary Budget Presentation)

Mar 30 Budget Committee Deliberations

Mar 31 Budget Committee Deliberations

Apr 2 Budget Committee Deliberations

Apr 8 Special Council Meeting to approve Budget

CRP OV-3

Current and Future Situation

• Provincially mandated as a high-growth municipality

• Infrastructure repair and replace – plan to address gap

• Transition to full accrual budgeting beginning in 2015

• Address unspent capital

• Improve accountability and transparency

CRP OV-4

City of Brampton Organizational Structure

CRP OV-5

7-Year Historical Average – Property Tax Bill

$1,365 $1,445 $1,478 $1,526 $1,589 $1,733* $1,792*

$1,457 $1,489 $1,502 $1,516 $1,515

$1,543 $1,570

$760 $753 $747 $739 $729

$736 $738 $3,583 $3,687 $3,727 $3,782 $3,834

$4,012 $4,100

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2008 2009 2010 2011 2012 2013 2014

Pro

pert

y T

ax

Budget Year

City of Brampton Region of Peel School Boards*Includes Peel Memorial HospitalLevy: $52 (2013) and $50 (2014)

CRP OV-6

2014 Residential Property Tax Bill – Total

6

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)

CRP OV-77

Tax Increases (Blended – Excluding Education)

* Hospital Levy initiated in 2013

2.5% 2.5% 2.5%

1.2%

1.7%2.0% 2.1%

1.3%

1.4%

1.6%1.8% 1.7%

0.8%

1.0%0.5%

0.5%

0.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2007 2008 2009 2010 2011 2012 2013 * 2014

Ta

x %

In

cre

as

e

Year

Region

Hospital

City

3.5%

CRP OV-8

Residential % of Property Taxes Collected

8

• Mississauga includes Pearson International Airport

Source: 2013 Financial Information Returns

50%

55%

60%

65%

70%

75%

80%

CRP OV-9

(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 $4,360Oshawa $4,013Mississauga $3,984Whitby $3,854Hamilton $3,747Brampton $3,657Oakville $3,512Richmond Hill $3,476Burlington $3,410

SENIOR EXECUTIVE (2)

Markham $6,206Oshawa $6,087 Oakville $6,055Hamilton $5,995Whitby $5,962 Vaughan $5,931Burlington $5,817Mississauga $5,702Richmond Hill $5,672Brampton $5,598

Residential Tax Comparisons - Municipalities

9

CRP OV-10

7-Year Historical Revenues

62.5% 62.9% 65.0% 66.0% 67.1% 67.4% 68.0%

27.5%25.5% 25.5%

26.0%26.0%

25.8%25.2%

10.0%11.6% 9.5%

8.0%6.9%

6.8%

6.8%

$371,636 $400,817 $408,235

$429,554 $454,903

$491,075

$530,109

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2008 2009 2010 2011 2012 2013 2014

Gro

ss E

xp

en

dit

ure

s (

000's

)

Budget Year

Revenues as a Percentage of Gross Expenditures

Taxes and PIL's User Fee and Service Charges Other Revenues

CRP OV-11

2014 City Budget – Property Tax Impact

* Cost on property tax bill based on average home with a 2014 assessed value of $364,000

LabourOther

ExpensesRevenue

Net

Expenses

Public Services 197,709$ 59,592$ (94,371)$ 162,929$ 832.94$

Plng & Infrastructure Services 65,948$ 43,192$ (21,701)$ 87,438$ 447.01$

Corporate Services 41,221$ 16,544$ (8,646)$ 49,119$ 251.11$

Brampton Public Library -$ 13,740$ -$ 13,740$ 70.24$

General Government 3,125$ 64,806$ (54,595)$ 13,336$ 68.18$

Office of Chief Operating Officer 7,111$ 2,437$ (354)$ 9,193$ 47.00$

Mayor and Council 2,509$ 525$ -$ 3,034$ 15.51$

Office of Chief Admin Officer 1,825$ 81$ -$ 1,906$ 9.74$

Hospital Levy -$ 9,833$ -$ 9,833$ 50.27$

City TOTAL 319,448$ 210,749$ (179,667)$ 350,530$ 1,792.00$

City TOTAL

2014 Budget ($ thousands) $ Cost on

Property

Tax Bill

CRP OV-1212

2015 Preliminary Operating Budget Tax Impact

Every additional $100,000 spent on City operations adds approximately 50¢ to

the average property tax bill (based on 2015 average assessed value of $381,000)

$10 million

$100,000

1% increase to the tax levy = $3.62 million

$0.50

CRP OV-13

• Maintain existing staffing levels (non-decisionablesalary and wage costs)

• Inflationary and other adjustments to reflect actual expenditure and revenue expectations

Base Operating Adjustments

$8.23 million

• Additional tax revenue from new properties added to the tax roll

Assessment Growth

($11.85 million)

• Increased contribution to capital infrastructure (1%)Infrastructure Levy

$3.62 million

• Maintain current services levels• Additional staff and resources

to respond to growth

Growth – Maintain Service Levels

$18.56 million

• New services• Improved service levels

Service – Improve Service Levels

$9.90 million

2015 Current Budget – Incremental Changes

13

Ne

t ze

ro im

pa

ct

on

ta

x le

vy

Ta

x i

mp

ac

t

CRP OV-14

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)

CRP OV-15

2015 Business Plan and Budget

General Government

Budget Sub-CommitteeFebruary 11, 2015

CRP OV-16

Organizational Structure

Overview: General Government consists of various accounts that are not directly controllable by nor directly related to the operations of any one department.

Key accounts include:• Corporate managed accounts• City-wide initiatives• Financial accounts• Property tax accounts

CRP OV-17

Goals and Current/Future Situation

• General Government Goals

• Management of accounts that are not controlled or directly related to the operations of any one department

• Links to Corporate Excellence in the Service Plan

• Continued Financial Stability

• Current and Future Situation

• Pending collective agreements and compensation adjustments

• Need to invest in reserves to address infrastructure funding gap

• Changes in policies (e.g. community grants)

• Fluctuation in interest rates affects investment income

CRP OV-18

2014 General Government Budget

• Revenues and expenditures from the Provincial Offences Act (POA)• Municipal elections (every four years)• Subdivision administration fees

Corporate Managed Accounts

($11.2 million)

• Sports, heritage, arts and culture, community events• External agency grants

City-wide Initiatives $2.3 million

• Contributions to and from corporate reserve funds• Includes infrastructure levy, hospital levy, internal borrowing

• Investment income, interest costs, bank service charges• Compensation adjustments pending decision

Financial Accounts

$47.3 million

• Property tax levy• Supplementary taxes• Payments in lieu of taxes• Tax rebates, adjustments, allowances and write-offs

Taxes

($365.8 million)