Wednesday, December 14, :00 p.m. Special Meeting Council Chambers 4 th Floor

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1 Agenda City Council The Corporation of the City of Brampton Wednesday, December 14, :00 p.m. Special Meeting Council Chambers 4 th Floor Members: Mayor L. Jeffrey Regional Councillor G. Gibson Wards 1 and 5 (Acting Mayor December) Regional Councillor E. Moore Wards 1 and 5 Regional Councillor M. Palleschi Wards 2 and 6 Regional Councillor M. Medeiros Wards 3 and 4 (Acting Mayor January 2017) Regional Councillor G. Miles Wards 7 and 8 (Acting Mayor February 2017) Regional Councillor J. Sprovieri Wards 9 and 10 City Councillor D. Whillans Wards 2 and 6 City Councillor J. Bowman Wards 3 and 4 City Councillor P. Fortini Wards 7 and 8 City Councillor G. Dhillon Wards 9 and 10 For inquiries about this agenda, or to make arrangements for accessibility accommodations for persons attending (some advance notice may be required), please contact: Terri Brenton, Legislative Coordinator, Telephone , TTY cityclerksoffice@brampton.ca Note: Some meeting information may also be available in alternate formats upon request.

2 Agenda City Council Note: Please ensure all cell phones, mobile and other electronic devices are turned off or placed on non-audible mode during the meeting. Council Members are prohibited from sending text messages, s and other electronic messaging during the meeting. 1. Agenda 2. Declarations of Interest under the Municipal Conflict of Interest Act Delegations (5 minutes maximum) Delegation from Jotvinder Sodhi, Canadian Families Alliance, re: Property Tax Increase Presentations Presentation from Harry Schlange, Chief Administrative Officer and Dave Sutton, Director, Finance and Interim Treasurer, Corporate Services, re: City of Brampton Budget Reports Report from D. Sutton, Director of Finance and Interim Treasurer, Corporate Services, dated December 2, 2016, re: Operating and Capital Budget Approval Recommendation Committee Reports Minutes Budget Committee November 28 to November 29, 2016 (Chair Regional Councillor Gibson) To be approved 7. Correspondence Page 2 of 3

3 Agenda City Council 8. Public Question Period 15 Minute Limit (regarding any decision made at this meeting) By-laws To amend User Fee By-law , as amended various fees and charges Confirming By-law To confirm the proceedings of the Special Council Meeting held on December 14, Adjournment Next Meetings: Wednesday, January 25, :30 a.m. Wednesday, February 8, :30 a.m Page 3 of 3

4 3.1 Attention: Request for Delegation City Clerk's Office, City of Brampton, 2 Wellington Street West, Brampton ON L6Y 4R2 cityclerksoffice@brampton.ca Telephone: (905) Fax: (905) Meeting: City Council Planning & Infrastructure Services Committee Corporate Srvcs. Cmmttee Community & Public Services Committee Economic Dev. Committee Other: Meeting Date Requested: Agenda Item (if applicable): Name of Individual(s): Position/Title: Organization/Person being Represented: Full Address for Contact: Telephone No. / Fax No. Subject Matter to be Discussed Action Requested Note: a delegation is limited to not more than five minutes. I am submitting a formal presentation to accompany my delegation: I will require the following audio-visual equipment/software for my presentation: Computer Notebook DVD Player Other - please specify Note: Attach additional page if required. Yes No PowerPoint Delegates are requested to provide to the City Clerk's Office well in advance of the meeting date: (i) 25 copies of all background material and/or presentations for publication with the meeting agenda and/or distribution at the meeting, and (ii) for PowerPoint and other visual presentations, an electronic copy of the presentation (e.g., DVD, CD,.ppt file) to ensure compatibility with corporate equipment. Once the above information is received by the City Clerk's Office, you will be contacted by a Legislative Coordinator to confirm your placement on the appropriate agenda. Personal information on this form is collected under authority of the Municipal Act, SO 2001, c.25 and/or the Planning Act, R.S.O. 1990, c.p.13 and will be used in the preparation of the applicable council/committee agenda and will be attached to that agenda. Questions about the collection of personal information should be directed to the Deputy City Clerk, Council and Administrative Services, 2 Wellington Street West, Brampton, Ontario, L6Y 4R2, tel

5 4.1-1 City of Brampton Budget 2017 Presentation to Council December 14, 2016 Page 1

6 OUTLINE Where We Are and How We Did It Future Ready: Momentum Value to Citizens Operating Budget Capital Budget Major Initiatives Summary SPECIAL COUNCIL MEETING December 14, 2016 Page 2 Overview

7 PROPERTY TAX IMPACT OVERALL City, Region, Schools 2.3% Net Savings: 4.9% $5.5M 3.6% Assessment Growth: $1.3M 3.3% SPECIAL COUNCIL MEETING December 14, 2016 Page 3 Overview

8 PROPOSED COMPLEMENT August 2016 Now Fire & Emergency Services Transit Other SPECIAL COUNCIL MEETING December 14, 2016 Page 4 Overview

9 4.1-5 SUSTAINABLE TRANSFORMATION 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 Cost Improvements & 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 SPECIAL COUNCIL MEETING December 14, 2016 Page 5 Overview

10 4.1-6 STRATEGIC PLAN: 2016 Accomplishments 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 SPECIAL COUNCIL MEETING December 14, 2016 Page 6 Overview

11 4.1-7 FUTURE READY: Momentum COUNCIL S VISION Brampton is a connected city that is innovative, inclusive and bold Continue to modernize our corporation Become a magnet for jobs and innovation Build an urban future SPECIAL COUNCIL MEETING December 14, 2016 Page 7 Overview

12 4.1-8 FUTURE READY: Momentum BRAMPTON 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) SPECIAL COUNCIL MEETING December 14, 2016 Page 8 Overview

13 4.1-9 VALUE TO CITIZENS Base Operating Increase 3.3% New and Enhanced Infrastructure Levy 0.5% 0.8% 2.0% OVERALL City, Region, Schools 2.3% SPECIAL COUNCIL MEETING December 14, 2016 Page 9 Overview

14 RESIDENTIAL TAX BILL School Boards, $781 City of Brampton, $2,115 TYPE OF HOME VALUE TOTAL INCREASE Average Residential $443,000 $4,688 $107 Region of Peel, $1,743 Hospital Levy, $49 Single Detached $507,000 $5,352 $124 Semi Detached $369,000 $3,884 $91 Townhouse $353,000 $3,723 $87 Condominium $240,000 $2,587 $62 SPECIAL COUNCIL MEETING December 14, 2016 Page 10 Overview

15 BASE OPERATING INCREASE 2.5% 2.0% 1.5% 1.0% 2017 Proposed: 0.5% Respond to population growth Maintain service levels Accommodate inflation 0.5% 0.0% Base Operating Increase Toronto CPI Ontario CPI CPI: Consumer Price Index (inflation) As at September 2016 SPECIAL COUNCIL MEETING December 14, 2016 Page 11 Overview

16 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 SPECIAL COUNCIL MEETING December 14, 2016 Page 12 Overview

17 NEW & ENHANCED: Fire Community Value Provides FULL RESPONSE (5 trucks) in 8 minutes, 90% of the time (from current 27%) Improves response times Current Levels Puts another fire apparatus in service Meets NFPA* standards * NFPA = National Fire Protection Association SPECIAL COUNCIL MEETING December 14, 2016 Page 13 Overview

18 INFRASTRUCTURE LEVY Infrastructure Levy: 2.0% Total asset replacement cost = $5.1B (excluding land) Maintain existing assets Leverage Federal and Provincial funding SPECIAL COUNCIL MEETING December 14, 2016 Page 14 Overview

19 INFRASTRUCTURE LEVY SPECIAL COUNCIL MEETING December 14, 2016 Page 15 Overview

20 LEVERAGING INVESTMENTS Federal: $180B over 11 years Provincial: $137B over 10 years F: $25.3B P: $55B Transit Green F: $21.9B P: $325M F: $10.1B P: $26B Transport Social F: $21.9B P: $52B SPECIAL COUNCIL MEETING December 14, 2016 Page 16 Overview

21 CHANGES TO OPERATING BUDGET 2017 Operating Budget = $631.6M Proposed Operating Budgets ($000s) Base Operating Increase 2,333 4,693 6,615 New and Enhanced 3,284 3,656 4,460 Infrastructure Levy 8,452 9,050 9,649 TOTAL Variance 14,068 17,400 20,724 Budget Increase % 3.3% 3.8% 4.3% 1% of City property tax levy = $4.2M SPECIAL COUNCIL MEETING December 14, 2016 Page 17 Operating

22 CAPITAL BUDGET Proposed Capital Budgets ($000s) TOTAL Public Works & Engineering 61,970 82,337 81, ,716 Community Services 34,700 39,107 55, ,977 Transit 71,421 18,298 25, ,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 SPECIAL COUNCIL MEETING December 14, 2016 Page 18 Capital

23 MAJOR INITIATIVES Facility repair and replacement Sandalwood Transit Facility expansion Road resurfacing Road widenings Züm Airport Road expansion New buses SPECIAL COUNCIL MEETING December 14, 2016 Page 19 Capital

24 RESPONSIBLE BUDGET Teamwork: Council and Staff Respond to growth Enhance public safety Move and connect people Infrastructure investment Best-in-Class Foundation Trust and confidence Continuous improvement, innovation Modernize corporation Focus on progress TAX IMPACT City, Region, Schools 2.3% SPECIAL COUNCIL MEETING December 14, 2016 Page 20

25 5.1-1 Report City Council The Corporation of the City of Brampton Date: Subject: Contact: Budget Approval David Sutton, Director, Finance and Interim Treasurer, Corporate Services (905) Recommendations: 1. That the report from David Sutton, Director, Finance and Interim Treasurer, Corporate Services Department, dated December 2, 2016, to the City Council special meeting of December 14, 2016 re: Budget Approval be received; Operating Budget: 2. That the City of Brampton tax levy for 2017 be increased by $14,068,452 after accounting for assessment growth and incorporating all amendments from the Budget Committee meetings held November 28 and 29, 2016; 3. That Council approve the 2017 Operating Budget with total budgeted expenditures of $631,577,313 and budgeted revenues of $631,577,313 (Appendix A); 4. That the Treasurer be authorized to make all necessary transfers between Reserves, Reserve Funds, and the Operating Fund as and when required; 5. That the Treasurer be authorized to make all necessary transfers of amounts budgeted on a provisional basis in General Government accounts to Department operating accounts, as and when the necessary supporting information is available; 6. That the Chief Administrative Officer be authorized to effect the necessary funding transfers, incur expenditures, and add or adjust complement as required to access the corporate emerging issues (contingency) account and to implement the approved budget and related organizational changes;

26 That the departments proceed with their respective 2017 programs as described in the Proposed Business Plan and Budget; 8. That the 2018 and 2019 Operating Budgets be approved in principal with a projected property tax bill increase of 2.6% and 2.8% for the City, Region and School Boards combined; Capital Budget: 9. That Council approve the 2017 Capital Budget in the amount of $183,267,000 (Appendix B); 10. That Council approve the 2017 Capital Cash Flow of $176,000,000 for use on the City s 2017 annual financial statements; 11. That the Treasurer be authorized to make all necessary transfers between Reserves, Reserve Funds, and the Capital Fund as and when required; 12. That the departments proceed with their respective 2017 capital projects as described in the Proposed Business Plan and Budget; 13. That the 2018 and 2019 Capital Budget be approved in principal, in the amounts of $156,688,000 and $176,880,000 (Appendix B); 14. That the Treasurer be authorized to request debt financing through the Region of Peel for capital projects identified as external debt funded (Appendix C), subject to: 1. Obtaining specific Council approval prior to the request to the Region of Peel for debenture financing; 2. Staff identifying alternative funding sources prior to the need for the funding. 15. That the Treasurer be authorized to borrow from reserves, reserve funds and other City funds, as required to temporarily fund the cash flows for projects identified as external borrowing (Appendix C), subject to staff identifying alternative funding sources; 16. That the Treasurer be authorized to borrow from the Community Investment Fund for projects identified as internal borrowing (Appendix C), subject to staff identifying alternative funding;

27 That the Treasurer be authorized to substitute Internal Borrowing from the Community Investment Fund with funding from Development Charge Reserves for capital projects identified in Appendix C, should sufficient funding be available. 18. That the Treasurer be authorized to substitute External Tax Supported Borrowing with funding from Reserve Fund #4 Asset Repair and Replacement for projects identified in Appendix C, should sufficient funding be available. Full Accrual Budget: 19. That Council approve the 2017 Full Accrual Budget net surplus of $129.3 million, as specified in Appendix D. Overview: Budget Committee is recommending a 2017 net budget increase of 3.3% for the City. When taking into account the Region of Peel s 2.2% net budget increase and no change in the Education School Boards component, the overall property tax bill will increase by 2.3%. For the average residential property assessed at $443,000 this equates to an increase of $107 per year on the overall tax bill. The 2017 Operating Budget, as recommended by Budget Committee, provides for gross expenditures and revenues of $631.6 million. After incorporating assessment growth and other revenue adjustments, the 2017 Operating Budget requires a tax levy increase of $14.1 million. The 2017 Capital Budget recommended for approval totals $183.3 million. The 2017 Capital Cash Flow recommended for approval totals $176.0 million. The 2017 Full Accrual Budget consists of $730.8 million in expenditures and $860.1 million in revenues, resulting in a net surplus of $129.3 million. Financing recommendations are presented in this report in order to obtain authorization for the necessary fund transfers.

28 5.1-4 Background: The City of Brampton is one of the youngest, most diverse and fastest growing cities in the country. The Budget has been developed with a focus on building a future ready city that is able to compete on a global stage. This includes providing the right balance of services, investing in innovation and infrastructure, while being financially responsible and ensuring value for money. Staff is committed to accountability and transparency for all City of Brampton stakeholders, including Council and the public. The Budget presents the City s initiatives in an open, transparent and meaningful way. The C.D. Howe Institute recognized these efforts in November, 2016, as Brampton received the highest grade in Canada A- for budgeting and public disclosure of financial data. The budget reflects a balance between the priorities of the community and a fiscally responsible approach for the City. Operating Budget: Budget Committee is recommending a 2017 net budget increase of 3.3% for the City. In dollar terms, the 2017 Operating Budget requires a tax levy increase of $14.1 million, with total gross expenditures and revenues amounting to $631.6 million (Appendix A). When combined with the Region of Peel s 2.2% net budget increase and no change on the Education School Boards component, the 2017 overall property tax bill will increase by 2.3%. The combined increases of the City and the Region translate into a $107 per year increase on the average residential property tax bill, based on a 2016 average Municipal Property Assessment Corporation (MPAC) property assessment value of $443,000. Budget Committee meetings held November 28 and 29, 2016, resulted in a reduction to the proposed 2017 Operating Budget. Assessment Growth for 2017 came in higher than initially forecast by $1.3 million. Budget Committee subsequently recommended that this additional revenue be used to offset the City s budget increase in This resulted in the 2017 overall property tax bill decreasing from the originally proposed 2.6% increase to a 2.3% increase. The 2018 Operating Budget is projected to have an overall property tax increase of 2.6%, while the 2019 Operating Budget is projected to increase by 2.8% for the City, Region and School Boards combined.

29 5.1-5 Capital Budget: The 2017 Capital Budget recommended for approval totals $183.3 million (Appendix B), with an operating impact of $8.8 million. The recommended budget has been prepared in the context of ensuring adequate repair and replacement of the City s existing infrastructure and delivering new assets, while taking into account the City s capacity to deliver capital projects timely and effectively. The 2018 Capital Budget is forecast at $156.7 million and the 2019 Capital Budget is forecast at $176.9 million (Appendix B). Internal and External Debt: The 2017 Capital Budget includes internal and external debt financing of $20.5 million. The individual projects and estimated annual repayment costs are included in Appendix C. External Debt financing for 2017 amounts to $11.2 million of property tax supported borrowing. As the projects are completed and become eligible for debt financing, staff will review available reserves to determine if debt financing can be substituted by alternative funding sources. Internal Debt financing in the amount of $9.3 million has been identified in the 2017 Capital Budget and is supported by Development Charges. The Community Investment Fund will be used to fund these projects with repayments coming from future Development Charge collections. Staff will review development charge reserves regularly to determine if internal borrowing can be substituted. Capital Cash Flow: The City is required to approve an annual capital spending budget for the full capital program for the purposes of the Annual Financial Statements, including projects funded in the 2017 budget and projects funded in prior years, still in progress. The 2017 cash flow is derived by reviewing historical spending patterns and projects currently in progress. It is estimated that the City will spend $176.0 million on the 2017 capital program. Full Accrual Budget: Municipal government budget methods have historically been focused on the annual cash requirements to operate the municipality and the associated property tax needed to fund operations.

30 5.1-6 With the introduction of the Public Sector Accounting Board (PSAB) changes with respect to the Tangible Capital Asset Reporting (TCA) in 2009, additional financial information has become available, such as annual depreciation expense and developer contributed assets that were not previously reported in the City s Financial Statements or Budgets prior to this change. Full Accrual Budgeting provides stakeholders with a better reflection of the long-term financial health of the municipality for decision making purposes. Full Accrual Budgeting also serves to meet the disclosure requirements of Ontario Regulation 284/09 Budget Matters Expenses. The Full Accrual Budget for 2017 projects a net surplus of $129.3 million (Appendix D). This surplus is primarily due to developer contributed assets, recognized development charges and other grants and subsidies, such as gas tax funding. Developer contributed assets consists of the City taking ownership of sub-divisions built by developers. The value of the sub-division is included on the City s balance sheet as an asset and must therefore be operated, maintained and depreciated. Recognized development charges is funding received from developers utilized during the year to fund growth related assets, such as new roads and parks. Other grants and subsidies such as gas tax funding are sources of funding contributed to the City for specific purposes and cannot be used to offset property taxes. Gas tax funding is primarily used for Transit and Road Infrastructure related projects. Although the 2017 Full Accrual Budget indicates a surplus position of $129.3 million, this is largely due to the City of Brampton s current growth cycle and cannot be used to offset property taxes. Conclusion: The Budget has been developed with a focus on building a future ready city that is able to compete on a global stage. This includes providing the right balance of services, investing in innovation and infrastructure, while being financially responsible and ensuring good value for money. The City s 2017 Operating Budget requires additional funding of $14.1 million. When combined with the Region of Peel s and School Boards funding requirements, this results in a 2.3% increase on the overall tax bill. The 2017 Capital Budget consists of $183.3 million of project funding, focused on ensuring adequate repair and replacement of the City s existing infrastructure and delivering new assets, while taking into account the City s capacity to deliver capital projects timely and effectively.

31 5.1-7 All funding recommendations required for implementation of the 2017 Operating and Capital Budgets are incorporated within this report and are forwarded to City Council for approval. Approved by: David Sutton Director, Finance and Interim Treasurer Approved by: Patrick Moyle Interim Commissioner Corporate Services Attachments: Appendix A: 2017 Operating Budget Summary Appendix B: Capital Budget Summary Appendix C: 2017 Capital - Debt Financing and Repayments Appendix D: 2017 Full Accrual Budget Report authored by: Mark Medeiros, Manager, Corporate Budgets

32 5.1-8 APPENDIX A: 2017 OPERATING BUDGET SUMMARY ($000s) BREAKDOWN BY CATEGORY 2016 BUDGET* 2016 ACTUALS** 2017 BUDGET 2017 vs 2016 BUDGET % CHANGE Labour Expenditures 359, , ,472 11, % Other Expenditures 287, , ,105 (26,870) -9.3% Total Expenditures 647, , ,577 (15,476) -2.4% Gross Revenues (647,054) (636,219) (631,577) 15, % *2016 Budget includes a one-time grant payment (other expenditure) and one-time draw from Reserve Fund Peel Memorial (gross revenue) each in the amount of $40 million which have been removed as part of the 2017 Operating Budget **Forecast year-end actuals based on June 30, 2016 actual result

33 5.1-9 APPENDIX B: CAPITAL BUDGET SUMMARY Capital Budgets ($000s) TOTAL Public Works & Engineering $61,970 $82,337 $81,409 $225,716 Community Services 34,700 39,107 55, ,977 Transit 71,421 18,298 25, ,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

34 APPENDIX C: 2017 CAPITAL DEBT FINANCING AND REPAYMENTS

35 APPENDIX D: 2017 FULL ACCRUAL BUDGET ($000s) Property Tax Related Expenditure Budget $631,577 Less: Add: Contributions to Reserve Funds 68,549 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 730,817 Property Tax Related Revenue Budget 631,577 Less: Add: Contributions from Reserve Funds 27,868 Recognized Development Charges, Grants & Subsidies 167,810 Developer Contributed Assets 78,913 Interest Earned on Reserves 9,717 Full Accrual Revenue Budget 860,150 Net Surplus / (Deficit) $129,332

36 6.1-1 Minutes Budget Committee Committee of the Council of The Corporation of the City of Brampton Monday, November 28, 2016 Tuesday, November 29, 2016 Council Chambers 4 th Floor City Hall Members Present: See Page 2 for Record of Attendance Staff Present: H. Schlange, Chief Administrative Officer A. Meneses, Commissioner, Community Services J. Pitushka, Commissioner, Public Works and Engineering H. MacDonald, Interim Commissioner, Planning and Development Services P. Moyle, Interim Commissioner, Corporate Services D. Sutton, Director, Finance and Interim Treasurer, Corporate Services M. Clark, Fire Chief, Fire and Emergency Services S. Connor, General Manager, Brampton Transit M. Medeiros, Manager, Financial Planning, Corporate Services P. Fay, City Clerk, City Clerk s Office E. Evans, Deputy City Clerk, City Clerk s Office S. Pacheco, Legislative Coordinator, City Clerk s Office

37 Record of Attendance (Committee Members) Budget Committee Minutes November 28, 2016 Call to order 9:30 a.m. Recessed 11:56 a.m. Reconvened 1:00 p.m. Recessed 1:53 p.m. Reconvened 7:02 p.m. Recessed 8:42 p.m. November 29, 2016 Reconvened 9:31 a.m. Recessed 12:12 p.m. Reconvened 1:01 p.m. Adjourned 1:10 p.m. Mayor Jeffrey Present Present Regional Councillor Gibson (Chair) Regional Councillor Medeiros (Vice-Chair) Present Present After 1 st recess, arrived at 1:01 p.m. (personal) Present Present Assumed Chair 1:07 p.m. to 1:07 p.m. Regional Councillor Moore Present Present Regional Councillor Palleschi Present Present Regional Councillor Miles Absent Absent Regional Councillor Sprovieri Present Present Arrived at 9:33 a.m. (personal) City Councillor Whillans Present Present Left at 10:10 a.m. (personal) City Councillor Bowman Present Present City Councillor Fortini Present Present City Councillor Dhillon Present After 2 nd recess, arrived at 7:17 p.m. (personal) Present Arrived at 9:52 a.m. (personal) Note: A record was not kept of Members of Council who left the chambers briefly during the meeting Page 2 of 17

38 6.1-3 Budget Committee Minutes Public Notice of this meeting was published in the Brampton Guardian and the City s website on November 17, 2016 and November 24, Note: These minutes are not a chronology of the discussions of Committee. Individual motions were taken during consideration of the items listed in these minutes. 1. Approval of Agenda The following motion was considered. BC That the agenda for the Budget Committee Meeting of November 28 and 29, 2016 be approved, as printed and circulated. Carried Regional Councillor Gibson, Chair, outlined the following procedural rules for the budget deliberations: 1. The Chair will entertain a motion to receive program budget submissions and presentations, external agency and organization presentations and public delegations after consideration of that program budget. 2. Public delegations are scheduled to be heard at 7:00 p.m. on November 28, The Chair may also invite public delegations on each major program budget presentation, including any related staff reports, after presentation to the Committee. 3. All substantive motions introduced during the Committee meeting (e.g., approve as presented or amendment to a program budget) be held (or approved in principle) for consideration in their totality during a final vote before the adjournment of the Committee meeting to facilitate a complete set of recommendations to be presented to the Special Council Meeting on December 14, The Chair will open a 15 minute public question period at the end of each sitting day of the Committee to invite public comments on recommendations made during that specific meeting day. Chair Gibson provided information on the budget process (e.g. public engagement, budget surveys, Budget Quick Reference Guide for Council) and thanked staff for their efforts throughout this process. Chair Gibson requested that the Budget Quick Reference Guide be made available to the public on the City s website Page 3 of 17

39 6.1-4 Budget Committee Minutes 2. Declarations of Interest under the Municipal Conflict of Interest Act 1. Regional Councillor Gibson declared a conflict of interest, as his son is under the compensation of the transit union; his son works for transit. 2. City Councillor Whillans declared a conflict of interest on the Works Department, on the union side of it because his brother works for the Works Department. 3. City Councillor Fortini declared a conflict of interest as his daughter works for the City, for non-union, part time for parks and recreation. 4. Mayor Jeffrey declared a conflict of interest on the full time portion of salaries, union, as her son is a mechanic in transit. 5. City Councillor Dhillon declared a conflict of interest as his younger brother works in parks and recreation part time. 3. Consent * The following items listed with an asterisk (*) were considered to be routine and non-controversial by the Committee and were approved at one time. (nil) 4. Presentations 4.1. Corporate Overview and Consideration of the Operating and Capital Budget Notes: Regional Councillor Gibson declared a conflict of interest, as his son is under the compensation of the transit union; his son works for transit, and left the room during the vote on the compensation portion of the Transit Department budget. Regional Councillor Medeiros, Vice-Chair, assumed the Chair at this time. City Councillor Whillans declared a conflict of interest on the Works Department, on the union side of it because his brother works for the Works Department. Councillor Whillans was not present during the vote on the compensation portion of the Public Works and Engineering Department budget. City Councillor Fortini declared a conflict of interest as his daughter works for the City, for non-union, part time for parks and recreation, and left the room during the vote on the compensation portion of the Recreation and Culture Division of the Community Services Department Page 4 of 17

40 6.1-5 Budget Committee Minutes Mayor Jeffrey declared a conflict of interest on the full time portion of salaries, union, as her son is a mechanic in transit, and left the room during the vote on the compensation portion of the Transit Department budget. City Councillor Dhillon declared a conflict of interest as his younger brother works in parks and recreation part time, and left the room during the vote on the compensation portion of the Recreation and Culture Division of the Community Services Department. H. Schlange, Chief Administrative Officer, and D. Sutton, Director, Finance and Interim Treasurer, Corporate Services, provided a presentation on the 2017 Budget. Committee discussion took place with respect to the following: Percentage of taxes received from commercial properties and the need to increase Brampton s commercial base Debt financing process and debt capacity of the Region of Peel Percentage of revenue used to cover labour costs Indication from staff that a core services review will be undertaken in 2017 Communication of the proposed budget to the public Higher than forecast assessment growth and staff recommendations regarding the use of these additional funds City-wide infrastructure gap Clarification regarding Fire and Emergency Services first full response Information on the Downtown Beautification project Process for measuring service excellence Accounting of proceeds from land sales Amount of funding that should be held in reserve accounts Marketing and sponsorship opportunities for Jim Archdekin skate park renewal Call volumes for the offices of Council and the Mayor Committee discussions regarding the Capital Budget included the following: Emergency back-up power investments for the Call Centre Restoration work at the Bovaird House and Log Cabin Confirmation from staff that opportunities to offset costs are explored for all projects Lester B. Pearson Theatre upgrades and concerns regarding the significant cost of this project Extensive renovations required at the Civic Centre and the need to determine the future use of this facility Page 5 of 17

41 6.1-6 Budget Committee Minutes o Clarification regarding the renovation budget for this facility o Indication that staff will identify immediate safety needs Review of Rose Theatre programming and possible relocation of local groups to the Lester B. Pearson Theatre Suggestion that the Public Art Capital Budget Project be referred back to staff for further consideration and prioritization Clarification regarding the budget for the office renovations on the 5 th and 6 th floors of City Hall Indication that work on the Chinguacousy Park Ski Hill will likely occur during the off-season Information on the process for auditing City facilities and developing facility budgets Explanation on how the budget for the Energy Contingency Program was determined Information from staff regarding the status of road construction projects for Countryside Drive and Castlemore Road Indication that a review will be undertaken to determine the need for in-house skilled trades staff Clarification regarding budget requests for maintenance at various facilities: o Replacement of rubber flooring at the Earnscliffe Recreation Centre o New sports floor and turf replacement at the Soccer Centre o Various wear and tear repairs required at the Cassie Campbell Community Centre and South Fletcher s Sportsplex o Replacements at Central Public School The need to ensure users pay their fair share of facility maintenance costs through user fees The need to improve cleanliness of facilities Review and possible upgrade of the existing parking garage control system Impact of competition from private fitness centres on municipal fitness centres Clarification of the budget request for lunch room refinements Varying opinions on the proposal for a City Hall Campus fitness room: o Indication that this investment is part of an overall wellness strategy for staff o Potential benefits to the Corporation (e.g. increase staff morale/productivity, enhance competitiveness to attract new employees) o Concern that the fitness room may be under-utilized o Suggestion that a nominal fee for users be considered Status of the Advertising and Sponsorship Agreement with the Brampton Beast Page 6 of 17

42 6.1-7 Budget Committee Minutes The possibility of bundling projects (e.g. replacement of fire alarms at various facilities) in the tendering process to realize savings The following motion was considered, voted on and lost: That the 2017 Capital Project for a fitness room in the West Tower (Project # for $200,000 in 2017) be deleted. A recorded vote was requested and the motion lost as follows: Yea Nay Absent Jeffrey Gibson Miles Fortini Dhillon Whillans Bowman Medeiros Sprovieri Palleschi Moore Lost 4 Yeas 5 Nays 2 Absent The following motions were considered. BC That the presentation by H. Schlange, Chief Administrative Officer, and D. Sutton, Director, Finance and Interim Treasurer, Corporate Services, to the Budget Committee Meeting of November 28 and 29, 2016, re: Budget 2017, be received. Carried BC That the 2017 Current Budget for the Corporate Departments and Programs be amended to allocate the entire $1.3 Million additional assessment growth (above forecasted amount included in the staff presented 2017 Current Budget) to reduce the City s budget increase such that the final overall property tax increase be adjusted from 2.5% to 2.3%. Carried BC That those non-urgent 2017 Capital Budget projects related to the Lester B. Pearson Theatre be referred back to staff for further analysis and prioritization, and report back to Committee of Council for consideration in early 2017, with the urgent health and safety capital projects, as determined by the Commissioner of Community Services and approved by the Chief Administrative Officer, approved as part of the 2017 Capital Budget. Carried Page 7 of 17

43 6.1-8 Budget Committee Minutes BC That the Public Art Capital Budget Project ($232,000 in 2017 Capital Budget) be referred back to staff for further consideration and prioritization, and report back to Committee of Council for consideration in early Carried BC That the 2017 Current Budget for the Corporate Departments and Programs be approved, as amended, except for: a. the compensation portion of the Transit Department budget b. the compensation portion of the Public Works and Engineering Department budget c. the compensation portion of the Recreation and Culture Division of the Community Services Department; and 2. That the 2017 Current Budget for the Corporate Departments and Programs, as it pertains specifically for the compensation portion of the Transit Department budget, be approved; and 3. That the 2017 Current Budget for the Corporate Departments and Programs, as it pertains specifically for the compensation portion of the Public Works and Engineering Department budget, be approved; and 4. That the 2017 Current Budget for the Corporate Departments and Programs, as it pertains specifically for the compensation portion of the Recreation and Culture Division of the Community Services Department, be approved; and 5. That the 2017 Capital Budget for the Corporate Departments and Programs be approved, as amended; and 6. That the 2018 and 2019 Current Budget for the Corporate Departments and Programs be endorsed, in principle, as presented; and 7. That the 2018 and 2019 Capital Budget for the Corporate Departments and Programs be endorsed, in principle, as presented. Carried 5. Delegations Note: The delegations were heard at 7:00 p.m. on Monday, November 28, Staff provided a summary of the presentation on the 2017 Budget (Item 4.1) Page 8 of 17

44 6.1-9 Budget Committee Minutes 5.1. Possible Delegations, re: 2017 Current and Capital Budget Approval, including Proposed Amendments to User Fee By-law , as amended, to Change User Fees, Transit Fares and Other Charges. In response to the Chair s inquiry on November 28, 2016, it was indicated that the following individuals were present to address the subject matter. 1. Doug Bryden 2. Chris Bejnar 3. Jotvinder Sodhi Doug Bryden, Co-Chair, Citizens for a Better Brampton, addressed Committee with respect to the following: Recent restructuring of City departments Current staff complement and salaries in the Mayor s Office Opportunity for efficiencies in the Council Office budget (e.g. car allowances) Impact of current lawsuits against the City on taxpayers Chris Bejnar, Co-Chair, Citizens for a Better Brampton, addressed Committee with respect to the following: Unregistered secondary units o Acknowledgement that secondary units are an important form of housing o Impact of a growing population on operational expenses o Indication that a majority of the City s revenue comes from the residential property tax base o Financial impact of having a portion of the population living in unregistered secondary units o Suggestion that income properties be assessed at a higher rate by MPAC o Impact of Bill 140 on municipalities and the need to advocate for a revamped property tax system to ensure private landlords pay their fair share of property taxes Property tax levy for healthcare o Opinion that the tax levy to fund Phase 1 of the new Peel Memorial Healthcare facility is unfair to taxpayers o Responsibility of the Province to build healthcare facilities in high-growth areas o Quality of healthcare in Brampton o Cost of building the Peel Memorial Healthcare facility as a multi-phase project o Opinion that the new Peel Memorial Healthcare facility should have been planned as a full service hospital o Request that Council call on the Province to immediately begin the RFP process for a fully-funded Phase 2 of the Peel Memorial Healthcare facility that will include an emergency room and in-patient beds Page 9 of 17

45 Budget Committee Minutes o The need for Brampton to more aggressively advocate the Province for the needs of this City Committee discussion took place with respect to the following: The City s contribution to the Peel Memorial Healthcare facility Clarification that the Mayor s Office labour budget was impacted by severances from the previous Council Questions were raised regarding the accounting of such severances Role and responsibilities of staff in the Mayor s Office Process for establishing compensation for Members of Council Volume of calls to the Mayor s Office and the use of 311 to filter calls Jotvinder Sodhi, Brampton resident, addressed Committee with respect to the following: Role of the Mayor, Councillors and their respective staff Concern regarding the proposed 2017 budget increase (3.6%) Opportunities for increasing revenue Request for information on the percentage of property taxes used to cover labour costs Request for information on the impact of higher property assessment values on property taxes The need for a second hospital in Brampton Request that Members of Council implement an open door policy to meet with residents Committee discussion took place with respect to the following: Confirmation that the Mayor has met with Mr. Sodhi and provided responses to his questions Concern regarding Mr. Sodhi s conduct in addressing his issues with Members of Council and staff Indication that Council will continue to advocate the Province regarding Brampton s needs The following motion was considered. BC That the following delegations to the Budget Committee Meeting of November 28 and 29, 2016, be received: 1. Doug Bryden 2. Chris Bejnar 3. Jotvinder Sodhi Carried Page 10 of 17

46 Budget Committee Minutes 5.2. Delegation from Kevin Montgomery, Brampton resident, re: Unsafe Roads and Vision Zero. Kevin Montgomery, Brampton resident, provided a presentation regarding unsafe roads and Vision Zero, which included the following: 2015 Brampton Collisions o Peel Regional Police Workload Trends (Motor Vehicle Collisions) o 14 fatal collisions were recorded in Brampton Basis for Vision Zero Recommendations: o Now: That transportation-related capital expenses be prioritized for pedestrian travel modes, with a specific focus on safety at intersections. o Ongoing: That staff be directed to report back on implementing a Vision Zero road traffic safety policy in the City of Brampton J. Pitushka, Commissioner, Public Works and Engineering, advised that staff will be attending Canada s Vision Zero summit and will report back to Committee in this regard. Committee discussion on this matter included: Concern regarding the number of collisions at intersections Suggestion that speed limits be reduced at intersections Strategies to reduce/prevent accidents at intersections Suggestion that advanced green turning lanes be reviewed/ considered as a measure for reducing collisions at intersections The following motion was considered. BC That the delegation from Kevin Montgomery, Brampton resident, to the Budget Committee Meeting of November 28 and 29, 2016, re: Unsafe Roads and Vision Zero be received. Carried 5.3. Delegations from the Jim Archdekin Skateboard, BMX Bike and Scooter Park Committee, re: Replacement of Aging Wooden Skate Park Structures. 1. Leo O Brien, Co-Chair 2. Abhay Kapil, Co-Chair 3. Ian Devitt, Co-Chair 4. Jonah Earle, Co-Chair Note: Ian Devitt and Jonah Earle were unable to attend this meeting Page 11 of 17

47 Budget Committee Minutes Leo O Brien and Abhay Kapil, Co-Chairs, Jim Archdekin Skateboard, BMX Bike and Scooter Park Committee, advised that, similar to their delegation during the 2015 budget process, they were in attendance to address Committee regarding the need to replace the wooden skate park structure at the Jim Archdekin Recreation Centre. Mr. O Brien advised Committee of staff s efforts to maintain and perform frequent safety inspections of the existing structure, and added he is hopeful some funding could be made available to upgrade it. Committee discussion on this matter included: Funding in the budget to upgrade the wooden skate park structure at the Jim Archdekin Recreation Centre Use of the skate park by youth Suggestion that staff seek sponsorships for this skate park Indication from staff that they will obtain input from the Jim Archdekin Skateboard, BMX Bike and Scooter Park Committee on the new skate park The following motion was considered. BC That the following delegations from the Jim Archdekin Skateboard, BMX Bike and Scooter Park Committee, to the Budget Committee Meeting of November 28 and 29, 2016, re: Replacement of Aging Wooden Skate Park Structures be received: 1. Leo O Brien, Co-Chair 2. Abhay Kapil, Co-Chair Carried 6. Local Board and Other Presentations 6.1. Downtown Brampton BIA Suzy Godefroy, Executive Director, Downtown Brampton BIA, presented information regarding the Downtown Brampton BIA and its 2017 budget request. Discussion took place with respect to the following: Volunteer development and an indication that downtown residents would like to get involved Role of the BIA to attract people downtown Importance of engaging the BIA membership The following motion was considered Page 12 of 17

48 Budget Committee Minutes BC That the presentation by Suzy Godefroy, Executive Director, Downtown Brampton BIA, to the Budget Committee Meeting of November 28 and 29, 2016, re: Brampton Downtown Business Improvement Area (BIA) 2017 Current and Capital Budget Request, be received; and, 2. That the 2017 Current Budget submission for the Downtown Brampton BIA be approved, as presented; and 3. That the 2017 Capital Budget submission for the Downtown Brampton BIA be approved, as presented; and 4. That the 2018 and 2019 Current Budget submission for the Downtown Brampton BIA be endorsed, in principle, as presented; and 5. That the 2018 and 2019 Capital Budget submission for the Downtown Brampton BIA be endorsed, in principle, as presented. Carried 6.2. Brampton Public Library Janice Awde, Board Member, and Rebecca Raven, Chief Executive Officer, Brampton Library, presented information regarding the Brampton Library and its 2017 budget request. Discussion took place with respect to the following: Progress on the Springdale library branch Questions regarding the budget for building repairs/construction at the Four Corners and Cyril Clark library branches The following motion was considered. BC That the presentation by Rebecca Raven, Chief Executive Officer, and Janice Awde, Board Member, Brampton Library Board, to the Budget Committee Meeting of November 28 and 29, 2016, re: Brampton Library 2017 Current and Capital Budget Request be received; and, 2. That the 2017 Current Budget for the Brampton Library be approved, as presented; and 3. That the 2017 Capital Budget for the Brampton Library be approved, as presented; and Page 13 of 17

49 Budget Committee Minutes 4. That the 2018 and 2019 Current Budget for the Brampton Library be endorsed, in principle, as presented; and 5. That the 2018 and 2019 Capital Budget for the Brampton Library be endorsed, in principle, as presented. Carried 7. Reports 7.1. Report from A. Meneses, Commissioner, Community Services, K. Ferreira, Division Chief, Administrative Services, Fire and Emergency Services, and S. Connor, General Manager, Transit, dated November 21, 2016, re: 2017 User Fees Community Services, Fire & Emergency Services and Brampton Transit (File DB.x). Committee discussion took place with respect to the following: Number of Fire responses to (illegal) basement apartments and fines issued Meeting/activity room rental rates for community groups The need to review all courses/programs offered by the City to determine their relevance, utilization, subsidy rate and service delivery options Use of facilities/programs by non-residents Service delivery method for services provided at the Flower City Seniors Centre (e.g. personal grooming services) Number of seniors using transit discounts and a suggestion that a low-cost monthly or yearly seniors bus pass be considered Bus transfers and the cost of existing transit discounts for seniors Opportunity for changing the recreation membership program for seniors from 55+ to 65+ The following motion was considered. BC That the report from A. Meneses, Commissioner, Community Services, K. Ferreira, Division Chief, Administrative Services, Fire and Emergency Services, and S. Connor, General Manager, Transit, dated November 21, 2016, to the Budget Committee Meeting of November 28 and 29, 2016, re: 2017 User Fees Community Services, Fire & Emergency Services and Brampton Transit (File DB.x), be received; and 2. That the Community Services user fee charges proposed for 2017, as set out in Appendix 1 in this report, be approved; and Page 14 of 17