nov 12 budget presentation rev nov8 - brampton budget/nov 12 budget... · calgary 1,096,833 988,812...

2014 Budget

Committee of Council - Budget

November 12, 2013

AGENDA

� Strategic Overview

� Budget Context

� Opportunities

� Challenges

� Budget Process

� Corporate Overview

� Departmental Overviews

2

STRATEGIC OVERVIEW

Peter Simmons

Chief Corporate Services Officer

3

SERVICE JURISDICTIONS

City of Brampton

� 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

Region of Peel

� Police Services� Public Health� Water Management� Waste Water Management� Waste (Garbage) Management� Paramedics� Child Care and Long Term Care� Social Housing� Regional Roads Maintenance� Regional Roads Snow Removal� Ontario Works� Transhelp

4

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

Top 15 Largest Canadian Cities

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

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CONTEXT – Brampton Population

6

Source: PDD and Hemson Consulting, Oct 2013

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1981 1986 1991 1996 2001 2006 2011 2031 2041Total Population 149,090 188,498 234,445 268,251 325,428 433,806 523,911 842,800 899,000

Growth 1981-2011 and Projections to 2041

CONTEXT – Existing Infrastructure and Assets

� 3,606 lane kilometres of road

� 3,522 hectares of parkland

� Including sports fields, playgrounds, pathways and trails, flowers and shrub beds

� 278 Conventional and 63 Züm Transit Buses

� 75 Corporate buildings

� Including corporate, parks, transit, works, and libraries

� 65 Recreation and community facilities including arenas, pools, theatres, etc.

� 14 Fire stations

$2.6 Billion in City Assets (excluding land)

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CONTEXT – Priorities

� Implementation of Strategic Plan

� Growth Management (Growing)

� Economic Development (Thriving)

� Corporate Excellence (Serving)

� Environmental Stewardship (Preserving)

� Community Engagement (Engaging)

� Limit Property Tax Impact

� Implementation of Long-Term Funding Strategy

� Implementation of Corporate Realignment

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2014 Budget Process

9

Core Services

• Service level Standards imposed by senior levels of government

• Health and Safety of the public, City employees and businesses

Enhanced Services

• Provide for services to support Brampton as premier city in which to live, work and play

• Implement service enhancements and/or new services, when feasible

Strategic Services

• Maintain capital infrastructure and adequate capital reserves; address infrastructure backlog

• Maintain service level standards of By-laws

• Support managed growth

2014 2015

CONTEXT – Opportunities

� Strong position for growth and prosperity in GTA and nationally

� Only municipality with a population of more than 500,000 with greenfield development capacity

� Need to leverage to our best advantage

� Infrastructure

� Financial management

� Historic downtown and strong central area

� Top quality infrastructure

� Diverse demographics

� Social strength and cultural vitality

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CONTEXT – Opportunities

� Economic accessibility (to broader marketplace)

� Roads, rail, transit, air

� Environmental quality

� Corporate investment potential now being realized

� Corridors and gateways

� National and foreign investment

� Financial sustainability

� Debt-free, potential investment capacity

� Excellent staff leadership

� Veteran council / leadership / community connections and strength

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CONTEXT – Challenges

� Delivering a shared vision and direction for next phase of growth

� Identity and reputation

� Senior levels of government

� Corporate

� Media

� Identification and balancing of competing priorities

� Resource allocation and delivery

� Infrastructure maintenance and development

� Scarce financial resources

12

2014 Budget Process

� Departments prepared preliminary operating budget submissions to maintain existing service levels -- equivalent to a 6.5% tax levy increase – Determined to be unacceptable under current economic conditions.

� Staff directed to prepare a funding scenario whereby the tax levy increase would be reduced to 1.9%

� National inflation rate at 1.1% and in the Toronto area 1.6%

� Mitigation measures to be considered include:

• Modifications to service levels

• Introduction of new user fees and/or adjust existing fees

• Deeper focus on cost reduction and service delivery efficiency

• Close scrutiny to staffing

13

2014 BUDGETCORPORATE OVERVIEW

Peter Honeyborne

Executive Director, Finance

and Treasurer

14

Current Budget – Multi Year Outlook

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* Preliminary, based on known commitments

6.5% 6.5%

2.9%

4.1%

4.9% 4.9%

6.5%

8.1%

6.5% 6.6%

4.6%

1.6% 1.6%1.9%

2.6% 2.5% 2.6%

1.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

City Portion Only Overall Tax Bill City Projected *

Current Budget – Gross Expenditures

Public Services48.4%

Corporate Services

11.1%

Planning & Infrastructure

Services21.2%

Office of the COO1.4%

Office of the CAO0.4%

Brampton Public Library2.7%

Mayor & Council0.6%

Non Departmental14.2%

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Current Budget – Revenue Sources

17

Taxes and PILs67.8%

User Fee and Service Charges

25.3%

Investment and Other Income

3.3%

Grants and Subsidies

1.8%Contribution from

Reserves1.8%

Provincial and Federal Grants ($000s)

18

Federal80%

Provincial20%

Gas Tax$32,496 Infrastructure

Stimulus$2,836

Recreation Infrastructure

$357

Acceleride$19,279

Fare Collection Equipment

$980

Small Business

Centre$153

Seniors Games

$50 MoH Seniors

Program$128

Gas Tax

19

� Brampton receives $8.1 million per year in Provincial Gas Tax funding

� Fully incorporated in the operating budget to offset prior year transit service increases

� Brampton receives $24.4 million per year in Federal Gas Tax funding

� Can only be used towards capital expenditures

� Evenly distributed between road resurfacing and transit bus replacements

Current Budget – 2013 Tax Bill

20

City of Brampton

Region of Peel

Education

Total 2013 Residential Tax Bill ($4,012)

* Based on average 2013 residential MPAC assessment value of $347,000

$729(18%)

$1,733(43%)

$1,538(39%)

Current Budget – 2014 Proposed Increase

21

Breakdown of the City portion of the average residential tax bill

Base Budget includes:• Salaries and Wages• Goods and Services• Capital contributions• Hospital levy of $52

Base Budget$1,733

1.9%

Additional 1% Infrastructure Levy

$17

Increases to accommodate inflation, growth and to maintain service levels

(less mitigation measures)$17

Based on 2013 average household with an MPAC assessed value of $347,000 (Brampton)

= $1,767

• Salary and wage costs• Inflationary and other financial adjustments to reflect

actual expenditure and revenue expectations

Core Operating Adjustments

($13.5 million)

• Transit expansion• Growth in roads, parks and new facilities• Contribution to capital – infrastructure levy

Commitments

($16.4 million)

• Additional tax revenue from new properties added to tax roll partially offsets growth related increases

Assessment Growth

($7.9 million revenue)

• Support staff required to support increased workloads, enhancements to existing services and new programs

Growth and Service Priorities

Current Budget – 2014 Consolidated Needs

22

Local Boards, Agencies and Community Groups

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� City of Brampton provides funding to a number of Local Boards, agencies and Community Groups

� New requirement in 2014 for groups to provide mid-year progress report to Council on utilization of City Funding

� $13.6 million in annual funding (operating and capital) to support the Public Library

� $900,000 in annual funding to support the Arts Council, Safe City Association and Downtown Development Corporation

� $300,000 in annual grant funding to support community groups

� Additional support in the form of in-kind services and attendance at functions (e.g. luncheons, dinners, galas, etc.)

Capital Budget - Context

� Financial considerations:

� Internal borrowing maximized

� Need to eliminate Development Charges’ (DC) reserve deficit

� Federal gas tax permanent, but rules unknown post 2014

� Need to address underfunding of capital repair and replacement

� Capital Program under review including Information Technology

� Financing alternatives including:

� Continued use of reserves – internal debt

� Infrastructure levy

� Contain growth in service levels

� Maximize CIL revenue

� External financing

24

2014 BUDGET – Capital Budget Drivers

� Asset Repair and Replacement

� Funding Gap (2013)

� Tax contribution constraints

25

Annual Cost $ 113 million

Annual Funding 71 million

Gap $ 42 million per year and growing

Capital Budget – 2014 Consolidated Needs

26

� Planning and Infrastructure Services ($110 million)

� Includes Maintenance and Operations, Engineering, Development

� Public Services ($87 million)

� Includes Fire, Transit, Facilities, Indoor/Outdoor assets

� Corporate Services ($7 million)

� Information Technology

� Brampton Public Library ($3 million)

� Collection Development

Tax Rate Mitigation Strategy

27

� Mitigation measures orientated to protect core services

� Continuing rationalization of municipal service delivery

� Budget incorporates community feedback from Strategic Planning initiative with a focus on:

� Economic Development

� Growth Management

� Corporate Excellence

� Environmental Stewardship

� Community Engagement

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28

� Transit services largely unaffected

� Debt free status to be maintained to the greatest extent possible

� Debt may be considered where appropriate for growth related projects (paid with development charges)

� Not utilizing Reserve Fund draws

28

Mitigation by Department ($000s)

29

Public Services$8,251 54%

Planning & Infrastructure

Services$4,947 33%

Corporate Services$379 2%

Non-Departmental$1,602 11%

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� Mitigation measures in the 2014 budget based on continuing to implement efficiencies in service delivery

� Staff continue to find business efficiencies in:

�Transit services

�Recreation services

�Parks maintenance

�Roads maintenance and snow clearing

� Minor increases to user fees

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DEPARTMENTAL

OVERVIEWS

31

Public Services

32

Department Overview:The Public Services department plans, operates and manages all services provided directly to the public and the community at large.

Key service areas include:

• Brampton Transit

• Facility Services

• Fire and Emergency Services

• Recreation and Culture

• Service Brampton

Julian Patteson, Chief Public Services Officer

Current Budget – Net Expenditure Budget

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Fire35.5%

Transit29.2%

Recreation & Culture18.9%

Service Brampton2.2%

Facility Services10.6%

Business Services

3.5%

Current Budget – Mitigation Measures

34

SERVICE LEVEL ADJUSTMENTSAmount (000s)

Tax Bill Equivalent

Tax Levy %

Continue to Implement Transit Service Efficiencies $ 3,155 $16.10 1.0

Streamline Corporate Facility Maintenance & Security

$ 1,063 $5.45 0.3

Prioritize Recreational Services $ 886 $4.50 0.3

Streamline Building Operations $ 560 $2.85 0.2

“Service Brampton” Weekend Service efficiencies $ 43 $0.25 0.0

Scrutinize budget for not-for-profit organizations $ 30 $0.15 0.0

TOTAL Service Level Adjustments $ 5,737 $29.30 1.8


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INCREASED USER FEES / REVENUEAmount (000s)

Tax Bill Equivalent

Tax Levy %

Transit Revenue Budget Increase $ 1,419 $7.25 0.4

Transit Fare Increase $ 1,095 $5.60 0.3

TOTAL Increase in Revenue $ 2,514 $12.85 0.7

Planning & Infrastructure Services

36

Department Overview:Planning & Infrastructure Services plans, designs, constructs and manages all assets of the City in support of service delivery to the community.


• Planning & Building

• Engineering & Development Services

• Maintenance & Operations

Marilyn Ball, Chief Planning & Infrastructure Services Officer


37

Maintenance & Operations

86.7%

Planning & Building

1.2%

Engineering & Development

Services6.8%

Business Services

5.3%


38

SERVICE LEVEL ADJUSTMENTSAmount (000s)

Tax Bill Equivalent

Tax Levy %

Parks, Pond and Flowerbed Maintenance Adjustments

$ 1,797 $9.15 0.5

Winter Road Maintenance Adjustments $ 300 $1.55 0.1

TOTAL Service Level Adjustments $ 2,097 $10.70 0.6

TOTAL Operational Efficiencies $ 1,329 $6.80 0.4


39

INCREASED USER FEES / REVENUEAmount (000s)

Tax Bill Equivalent

Tax Levy %

Development Application Fee (Move to 5 Year Average Budgeting Model)

$ 858 $4.35 0.3

New / increased user fees $ 663 $3.40 0.2

TOTAL Increase in Revenue $1,521 $7.75 0.5

Corporate Services

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Department Mandate:The mandate of the Office of Corporate Services is to provide specific support and services to Council, and all departments and divisions of the corporation to aid, and enable, effective and efficient municipal administration, and provision of services, city-wide.


• Council & Administrative Services

• Enforcement and By-law Services

• Finance

• Human Resources

• Information Technology

• Legal Services

Peter Simmons, Chief Corporate Services Officer


41

Information Technology

40.4%

Finance15.5%

Human Resources14.5%

Enforcement & By-law Services

14.9%

City Clerk’s Office, Council & Admin Services

7.1%

Administration1.0%

Legal Services6.6%


42

OPERATIONAL EFFICIENCIESAmount (000s)

Tax Bill Equivalent

Tax Levy %

Efficiencies in IT Software and Hardware Maintenance and Licence Agreements

$ 379 $1.95 0.1

Office of the Chief Operating Officer

43

Department Overview:The Office of the Chief Operating Officer supports the CAO and administration in the planning, delivery and management of City-wide services and initiatives.


• Strategic & Enterprise Services

• Strategic Communications

• Economic Development

• Office of Community Engagement

Dennis Cutajar, Chief Operating Officer

Non-Departmental

44

Overview:The Non-Departmental category consists of various accounts that are either not directly controllable by or not directly related to the operations of any one department.


• Corporate Managed - to fund initiatives that have a corporate impact but are managed by specific staff within individual departments of the City.

• City-wide Initiatives - to fund community project initiatives for the benefit of all residents of the City as a whole.

• Financial - for tracking of non department specific financial expenditures and revenues such as contributions to and from corporate reserve funds, interest costs and revenues and bank service charges.

• Tax - for the tracking of tax revenues including the basic property tax levy, payments-in-lieu of taxes and supplementary taxes.


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Amount (000s)

Tax Bill Equivalent

Tax Levy %

Additional Assessment Growth (Revenue) $ 1,000 $5.10 0.3

Administrative Expenses (City-wide reductions) $ 580 $2.95 0.2

TOTAL Mitigation Measures $ 1,580 $8.05 0.5

Next Steps

� Citizen input is requested and can be provided via:

� Feedback form on website (www.brampton.ca/Budget2014)

� Phone line (905-874-2789)

� Online Survey

� Budget deliberations will take place December 2nd - 4th

� Joint Public Meeting with Region scheduled for December 10th

� Budget approval is scheduled for December 11th

QUESTIONS?

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nov 12 budget presentation rev nov8 - brampton budget/nov 12 budget... · calgary 1,096,833 988,812...

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