Page 1
City of Brampton
Budget 2017
Presentation to
Budget Committee
November 28, 2016
Page 2 BUDGET COMMITTEE
November 28, 2016
OUTLINE
• Teamwork
• Where We Are and How We Did It
• Future Ready Momentum
• Value to Citizens
• Operating Budget
• Capital Budget
• New Information: Good News
• Summary
Overview
Page 3 BUDGET COMMITTEE
November 28, 2016
• Unprecedented team-based approach
• Corporate line of sight
• Continued commitment to infrastructure and our core services
• Modernizing operations with valuable investments in our human resources and procurement
• Continuous innovation and improvements as we work together
to build a future-ready Brampton
• Transformation realized efficiencies without affecting our service delivery
TEAMWORK
Overview
Page 4 BUDGET COMMITTEE
November 28, 2016
4.9% 3.6% 2017 Budget
IN PRINCIPLE
2017 Budget
PROPOSED Net savings: $5.5M
Property Tax Impact City, Region, Schools
2.5%
TEAMWORK
Overview
Page 5 BUDGET COMMITTEE
November 28, 2016
2017 PROPOSED INCREASE
3.0% 2017 Budget : Approved in Principle 4.9%
Transformation cost improvements $8.3M 2.0%
• Reinvesting in organizational gaps
(Human Resources, Purchasing, Library)
• Absorbing lower than expected assessment
• Other investments
Net savings
2017 Budget : Proposed 3.6%
Unanticipated pressures:
-$2.8M -0.7%
$5.5M 1.3%
PROPERTY
TAX
IMPACT
Overall City
Overview
2.5%
Page 6 BUDGET COMMITTEE
November 28, 2016
2017 PROPOSED COMPLEMENT
-
20
40
60
80
100
120
140
August 2016 Now
Fire & Emergency Services Transit Other
Overview
Page 7 BUDGET COMMITTEE
November 28, 2016
SUSTAINABLE TRANSFORMATION
2017 2018 2019 & beyond
Cost reduction $3.8M $4.3M $4.3M
Cost avoidance $4.5M $7.8M $7.8M
Total $8.3M $12.1M $12.1M
Term of Council: $20.4M
Cost Improvements
Key benefits: • More agile, responsive organization
• Clarity in roles and objectives
• Changing the corporate culture
Sustainable
financial benefits are a
by-product of this change
Overview
Page 8 BUDGET COMMITTEE
November 28, 2016
Good Government
Move & Connect
Smart Growth
Strong Communities
• Corporate transformation: increased productivity, $8.3M cost improvement
• CD Howe A-, Standard & Poor’s Triple-A
• Codes of Conduct, Lobbyist and Gift Registries
• Community engagement and ethnic media programs
• Multi-year budgeting
• Corporate Asset Management Plan
• Enhanced Züm services
• Expanded GO Services, rail network, innovation corridor
• Applied for $65M PTIF funding for Transit initiatives
• $63M capital roads, resurfacing, bridge and trail projects
• University announced for Brampton
• Economic Development and Culture refocused
• Official Plan Review, Environment, Cultural Heritage Master Plans
• Riverwalk downtown revitalization kickoff
• $40M City-invested to Peel Memorial construction opening
• Renewed Recreation focus on community health, wellness
• Youth engagement survey completed
• Inclusion and equity initiatives
STRATEGIC PLAN: 2016 Accomplishments
Overview
Page 9 BUDGET COMMITTEE
November 28, 2016
FUTURE READY: Momentum
Continue to modernize our corporation
• Be more innovative
• Build trust and confidence
Engage and empower employees
• Think bigger
• Focus on progress over process
• Hold each other accountable for high standards
• Increase speed, agility, responsiveness
COUNCIL’S VISION Brampton is a connected city that is innovative, inclusive and bold
Overview
Page 10 BUDGET COMMITTEE
November 28, 2016
“We estimate that Brampton’s
economy is very strong… We view
the city’s economy as dynamic and
well diversified, which robust
population growth supports.”
Standard & Poor’s
Brampton is a global market leader :
• Top 10 Mid-Sized American Cities of the
Future 2015/16
• Top 10 for Business Friendliness and
Connectivity
fDi Intelligence, a division of the Financial Times (UK)
FUTURE READY: Momentum
Overview
BRAMPTON
Page 11 BUDGET COMMITTEE
November 28, 2016
We are growing.
We are young.
We are diverse.
2016 540,000
2031 843,000
Our median age is younger than the 10 most
populated cities in Canada, Ontario, and the
Greater Toronto Area. 34.7
Over 50% of Brampton’s population was born
outside Canada.
• 209 distinct ethnic backgrounds
• 89 different languages
OUR COMMUNITY
Overview
Page 12 BUDGET COMMITTEE
November 28, 2016
3.6%
VALUE TO CITIZENS
New and Enhanced • new services
• improving existing services
Infrastructure Levy • facilities, roads, bridges
• repair and replacement
0.8% Base Operating Increase • wages, collective agreements
• contracted services
• supplies, fuel
0.8%
2.0%
Overview
2017 Budget
PROPOSED
Page 13 BUDGET COMMITTEE
November 28, 2016
BASE OPERATING INCREASE
2017 Proposed: 0.8%
• Respond to population growth
• Maintain service levels
• Accommodate inflation
Overview
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Base Operating Increase Toronto CPI Ontario CPI
CPI: Consumer Price Index (inflation)
Page 14 BUDGET COMMITTEE
November 28, 2016
NEW & ENHANCED: Transit
Community Value
• Züm growth, BRT and
support corridors
• Better connectivity
- Spadina subway link
• Increased frequency and
service levels
• Ridership increase of 500,000
Overview
Page 15 BUDGET COMMITTEE
November 28, 2016
NEW & ENHANCED: Fire
Community Value
• Provides first full response in
8 minutes, 90% of the time
(from current 27%)
• Improves response times
• Puts another fire apparatus in
service
• Meets NFPA* standards
* NFPA = National Fire Protection Association
Current
Levels
Overview
Page 16 BUDGET COMMITTEE
November 28, 2016
INFRASTRUCTURE LEVY
Infrastructure Levy: 2.0% • Total asset replacement cost =
$5.1B (excluding land)
• Maintain existing assets
• Leverage Federal and
Provincial funding
Overview
Page 17 BUDGET COMMITTEE
November 28, 2016
INFRASTRUCTURE LEVY
Overview
Page 18 BUDGET COMMITTEE
November 28, 2016
LEVERAGING INVESTMENTS
F: $25.3B
P: $55B
F: $21.9B
P: $325M
F: $10.1B
P: $26B F: $21.9B
P: $52B
Federal: $180B over 11 years
Transport
Green Transit
Social
Provincial: $137B over 10 years
Overview
Page 19 BUDGET COMMITTEE
November 28, 2016
PROPERTY TAX IMPACT
Property Tax Impact City, Region, Schools
2.5%
3.6% New and Enhanced
Infrastructure Levy
0.8% Base
0.8%
2.0%
Overview
2017 Budget
PROPOSED
Page 20 BUDGET COMMITTEE
November 28, 2016
TYPE OF HOME VALUE TOTAL INCREASE
Average Residential $443,000 $4,695 $115
Single Detached
$507,000
$5,360
$132
Semi Detached $369,000 $3,889 $96
Townhouse $353,000 $3,728 $92
Condominium $240,000 $2,591 $62
2017 RESIDENTIAL TAX BILL
Overview
Page 21 BUDGET COMMITTEE
November 28, 2016
Operating Budget
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November 28, 2016
*Forecast year-end actuals based on June 30, 2016 actual results
($000s)2016
BUDGET
2016
ACTUALS*
2017
BUDGET
2017 vs 2016
BUDGET
%
CHANGE
Labour Expenditures 359,079 351,231 370,472 11,394 3.2%
Other Expenditures 287,975 284,988 261,096 (26,879) -9.3%
Total Expenditures 647,054 636,219 631,568 (15,485) -2.4%
Gross Revenues (647,054) (636,219) (631,568) 15,485 -2.4%
2017 OPERATING BUDGET
Operating
Proposed
Page 23 BUDGET COMMITTEE
November 28, 2016
Property Tax Related Expenditure Budget $631,568
Less:
Contributions to Reserve Funds 68,549
Add:
Amortization (Depreciation Expense) 129,354
Project Expenses that are Operating in Nature 33,797
Post Employment and Other Liabilities 4,638
Full Accrual Expenditure Budget 730,808
Property Tax Related Revenue Budget 631,568
Less:
Contributions from Reserve Funds 27,868
Add:
Recognized Development Charges, Grants & Subsidies 167,810
Developer Contributed Assets 78,913
Interest Earned on Reserves 9,717
Full Accrual Revenue Budget 860,141
Net Surplus / (Deficit) $129,332
2017 FULL ACCRUAL BUDGETING
Operating
Proposed
Page 24 BUDGET COMMITTEE
November 28, 2016
OPERATING BUDGET: Department
Operating
Approved
($000s)2016
BUDGET
2017
BUDGET
2018
BUDGET
2019
BUDGET
DEPARTMENT BREAKDOWN
Office of the CAO $21,733 $23,004 $23,107 $23,517
Corporate Services 47,771 48,964 50,136 51,916
Planning & Development Services 293 1,651 1,868 1,889
Public Works & Engineering 88,554 90,947 94,134 97,218
Community Services 66,476 67,214 68,354 70,153
Economic Development 6,766 6,875 6,967 7,095
Fire & Emergency Services 60,427 62,418 64,730 70,101
Transit 60,917 63,200 66,145 68,010
Brampton Public Library 13,925 15,612 16,583 17,239
Mayor & Members Of Council 3,240 3,148 3,173 3,198
General Government (370,102) (367,647) (377,794) (389,609)
Departmetal Sub Total $0 $15,386 $17,400 $20,724
Property Tax Levy Increase (15,386) (17,400) (20,724)
Net Expenditure $0 $0 $0 $0
ProposedProposed
Page 25 BUDGET COMMITTEE
November 28, 2016
CHANGES TO OPERATING BUDGET
Operating
1% of City property tax levy = $4.2M
2017-2019 Operating Budgets ($000s) 2017 2018 2019
Base Operating and Growth 3,659 4,693 6,615
New or Enhanced Services 3,284 3,656 4,460
Infrastructure Levy 8,443 9,050 9,649
TOTAL Variance 15,386 17,400 20,724
Budget Increase % 3.6% 3.8% 4.3%
Proposed
Page 26 BUDGET COMMITTEE
November 28, 2016
2017 REVENUES BY CATEGORY
Operating
Page 27 BUDGET COMMITTEE
November 28, 2016
Potential City contribution sources
• University Levy
• Legacy Fund
• Land and/or infrastructure
UNIVERSITY
Workplan funding recommendation: $264K annually
(funded from former BDDC grant)
Operating
Page 28 BUDGET COMMITTEE
November 28, 2016
Capital Budget
Page 29 BUDGET COMMITTEE
November 28, 2016
2017-2019 Capital Budgets ($000s) 2017 2018 2019 TOTAL
Public Works & Engineering 61,970 82,337 81,409 225,716
Community Services 34,700 39,107 55,170 128,977
Transit 71,421 18,298 25,748 115,467
Corporate Services 6,503 6,290 7,427 20,220
Fire & Emergency Services 5,330 7,675 3,821 16,826
Planning & Development Services 1,667 1,635 1,505 4,807
Other 1,676 1,346 1,800 4,822
Totals 183,267$ 156,688$ 176,880$ 516,835$
CAPITAL BUDGET
Capital
Proposed
Page 30 BUDGET COMMITTEE
November 28, 2016
MAJOR INITIATIVES
• Facility repair and replacement
• Sandalwood Transit Facility expansion
• Road resurfacing
• Road widenings
• Züm Airport Road expansion
• New buses
Capital
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November 28, 2016
2017 CAPITAL BUDGET: Funding
Capital
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November 28, 2016
2017 20182019 &
Beyond
Grand
Total
Tax Bill
($)
Property
Tax %
Corporate Services $8,020 $850 $550 $420 $1,820 $9 0.4%
Public Works & Engineering 6,011 297 29 261 587 3 0.1%
Community Services 2,035 35 35 0 0.0%
Fire & Emergency Services 1,700 1,636 924 2,560 13 0.6%
Transit 69,769 2,035 1,746 3,781 19 0.9%
Grand Total $87,535 $1,147 $4,285 $3,351 $8,783 $44 2.1%
* Based on 2017 Average Residential Home Assessment of $443,000
Average Household
Impact*Department
Capital
Budget
($000s)
Operating Impact ($000s)
2017 CAPITAL BUDGET: Operating Impacts
Capital
Proposed
Page 33 BUDGET COMMITTEE
November 28, 2016
2017 FINANCING: Internal Borrowing and Debt
Capital
($000s) Funding Sources Debt Amount Yearly RepaymentBudget
Increase %
Internal Debt - DC
Supported
Community
Investment Fund$9,305 $1,121 N/A
External Debt - Tax
SupportedDebenture $11,237 $1,310 0.3%
* Based on 2017 Average Residential Home Assessment of $443,000
Page 34 BUDGET COMMITTEE
November 28, 2016
Recommendation:
• Increase contribution to infrastructure = $800K
• Reduce City’s budget increase from 3.6% to 3.5% = $500K
ASSESSMENT GROWTH
Property Tax Impact City, Region, Schools
2.4%
Final assessment growth is
$1.3 million higher than forecast
2.5%
Page 35 BUDGET COMMITTEE
November 28, 2016
SUMMARY
• Responsible budget
• Build on our momentum
– Teamwork
– Trust and confidence
– Continuous improvement and innovation
– Modernize our corporation
Together we
will build a
future ready
Brampton
Page 36 BUDGET COMMITTEE
November 28, 2016
UPCOMING BUDGET MEETINGS
Budget Committee
Mon. Nov. 28 9:30am – 5:00pm
7:00pm – 10:00pm Deliberations (Day 1)
Tue. Nov. 29 9:30am – 5:00pm Deliberations (Day 2)
Wed. Nov. 30 9:30am – 5:00pm Deliberations (Day 3, if required)
Thu. Dec. 1 3:00pm – 5:00pm Deliberations (Day 4, if required)
Special Council Meeting
Wed. Dec. 14 7:00pm – 10:00pm 2017 Budget Approval