2018 Budget. Tax increase previously approved by council: % % %

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1 Tax increase previously approved by council: % % % 1

2 Multi Year Budget Process Feb. 8, 2016 Council approved a multi-year budget ( ) Multi-year budgets provide stability and longer term planning for tax payers & for the municipality, and administrative efficiencies The Municipal Act requires that if a multi-year budget is passed by Council, that it be re-affirmed in each individual year (2016, 2017, & 2018) Multiple Year Budget Approval Policy (FC-011) & Use of Budgeted Assessment Growth Revenue Policy (FC-013) Council approved Policies On Nov 20 th FSP & Council have received a report that recommends some targeted amendments to the previously approved 2018 Budget 2

3 What has changed? 3.74% Growth in Highest in the Region! Results in $1.8M of additional revenue for the 2018 Budget Opportunity to address some significant pressures in

4 History of Assessment Growth: 4 Budgeted Assessment Growth = 1.5% or $1m Key Points: - No established trend line - Can vary materially from one year to another - Occurs when new properties are completed & brought onto the tax roll - There is a lag between when properties are constructed & thereafter assessed by MPAC.

5 History of Assessment Growth: Key Points: growth is highest in last 7 years & not expected to be sustainable 2. Tax adjustments are becoming more significant with each year 5

6 History of Assessment Growth: Budgeted Assessment Growth = 1.5% or $1m 6

7 Proposed Amendments to 2018 Budget: 7

8 Summary. Total levy $72.2M $19.2M $6.1M $5.7M $4.7M $4.1M $8.0M $4.8M $7.1M $2.0M $6.0M $4.5M 8

9 Summary 2018 budget impact per household is $27 (reduced from $31) 9

10 Summary A look back for context. As at Dec 10, 2015 when council considered the 3 year year budget, the CPIX as identified by staff in report CORP , was 2.2%. Council approved tax increase as follows % % %* * For 2018, staff are now recommending a 2.1% increase. This represents an increase of $27 (vs $31) annually per household or $2.25 per month per household. 10

11 - Comparators: Looking at the local taxes that our council approves, the city of Waterloo consistently has the lowest taxes compared to our neighbouring cities. 11

12 Comparators: 12

13 Comparators: 13

14 Comparators: 14

15 and looking towards 2019: Balance of minimum wage increase effective Jan 1, 2019, to $15.00 Legislated changes to CPP employer contributions Labour negotiations East Side library funding (3/4 of operating budget) Operating impact of new capital projects (roads, parks, service centre) Asset rehabilitation needs per Asset Mgmt plan Investment in Neighbourhoods 15

16 and more Balancing our investment in city assets with operating and capital priorities, 16

17 Recommendations for Council s Consideration: 1) That Council temporarily amend policy FC-013 for the 2018 Budget to revise the current allocation of assessment growth of 60% to operating and 40% equally divided between CRF and CIRRF to: 70% operating and 30% equally divided between CRF and CIRRF, resulting in a transfer of $536,967 to capital and; 2) That Council approve $441,000 for the purposes of funding minimum wage at $14 per hour and the related compression, subject to the enactment of Bill 148, Fair Workplaces, Better Jobs Act, 2017 by the Ontario government and further, if Bill 148 does not become law as written that that staff be directed to reserve these funds for anticipated 2019 labour pressures. 17

18 Recommendations for Council s Consideration: 3) That Council approve $363,063 for the purposes of funding existing labour/operations and external contractual obligations and; 4) That Council approve $230,000 (or approximately 25%) towards the operating costs of the future East Side Library and; 5) That Council approve $80,000 towards the Waterloo Wellington Local Health Integration Network programs for the purpose of maintaining current service levels as a result of frozen funding from the Province for the past 10 years and; 18

19 Recommendations for Council s Consideration: 6) That Council re-set the 2018 tax increase to 2.1% and; 7) That Council re-affirm the 2018 Capital Budget and Capital Forecast as previously approved on February 8, 2016 and as amended for the 2017 Development Charge Background Study and By-law, and for limited amendments made by Council on an as needed and individual basis. 19

20 Questions? 20