Operating and Capital Budgets

Transcription

1 Operating and Capital Budgets Budget Committee Presentation Presented to Budget Committee November 27, 2017 Page 1 Page 1

2 OUTLINE The Journey Overview Teamwork and Organizational Transformation Community Engagement Community Transformation Value for Citizens Budget Budget Context Value for Citizens Operating Overview Capital Overview 2018 Residential Tax Bill 2018 Property Tax Impact Page 2 Page 2

3 The Journey Teamwork and Organizational Transformation Community Engagement Community Transformation Page 3 Page 3

4 Teamwork and Organizational Transformation Transformation resulted in doing more with less Direct cost reduction to the bottom line Improved and modernized processes Cost Improvements & beyond Cost reduction $3.8M $4.6M Cost avoidance $4.5M $7.8M Continuous improvement $0.8M $1.6M Total $9.1M $14.0M Concerted, cohesive budget planning with unprecedented level of teamwork across the corporation. Page 4 Page 4

5 Community Engagement All Year Round Page 5 Page 5

6 Listening to Our Community: Key Campaigns Youth Survey Planning Vision Previous Budget Engagements Industry surveys Page 6 Page 6

7 Common Themes from Engagement Transit Fire services Recreation Green spaces Planning Vision Infrastructure University Community Planning Health Page 7 Page 7

8 Community Transformation Leveraging teamwork and community engagement for community transformation. How will we deliver that in Budget? Continued commitment to infrastructure and core services More responsive business approach Stronger service culture Investment in Strategic Plan priorities build on the momentum Page 8 Page 8

9 Value for Citizens Base Operating and Growth -1.3% External Pressures 0.6% 3.7% Net Budget Increase Infrastructure Levy 2.0% New or Enhanced 2.4% Page 9 Page 9

10 Value for Citizens Base Operating and Growth -1.3% External Pressures 0.6% 2.7% Overall Tax Impact City, Region, School Boards Infrastructure Levy 2.0% New or Enhanced 2.4% Page 10 Page 10

11 Budget Overview Page 11 Page 11

12 Budget 2018 Future Ready Brampton Supporting transit growth, strengthening fire response, keeping recreational opportunities up to date, investing in a new university and reimagining downtown public spaces to maintain momentum on building a future ready Brampton. Page 12 Page 12

13 Budget Context Page 13 Page 13

14 Value for Citizens Base Operating and Growth -1.3% External Pressures 0.6% Wages, collective agreements Contracted services Supplies, fuel 3.7% Net Budget Increase Minimum wage increase Compression Diesel fuel cap and trade Infrastructure Levy 2.0% Facilities, roads, bridges Repair and replacement New or Enhanced 2.4% New services Improving existing services Page 14 Page 14

15 Base Operating and Growth Base Operating and Growth -1.3% Wages, collective agreements Contracted services Supplies, fuel -0.7% External Pressures 0.6% Minimum wage increase Compression Diesel fuel cap and trade 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% -1.0% Base + External -0.7% 2.5% 2.1% 1.7% 1.6% Toronto CPI Ontario CPI Canada CPI MPI Page 15 Page 15

16 Infrastructure Levy Infrastructure Needs and Funding Needs over next 10 years ( ) Available Funds (including 2% levy) Shortfall (infrastructure gap) $1.8 B $1.2 B $0.6 B LTFMP recommends 5% per year for 10 years Infrastructure Levy: 2.0% Total asset replacement cost = $5.3B (excluding land) Maintain existing assets Leverage federal and provincial funding Minimum recommended annual levy increase (2%) will stabilize the infrastructure gap over the next 10 years Infrastructure maintenance needs were prioritized, resulting in deferral of projects An additional 1% annually levy increase over 10 years would mean over $200 million extra to invest in projects Page 16 Page 16

17 Infrastructure Levy Additional 1% = $200 million (over 10 years) would improve sustainability of City assets Facilities, community centres, other buildings Roads, street lighting, traffic systems Parks, pathways, playgrounds Buses and transit terminals Libraries and other meeting places Page 17 Page 17

18 New or Enhanced Includes new services and improvements to existing services New or Enhanced Züm Service Increase 1.0% Fire Full Response Enhancement 0.4% Fire Headquarters and Training Facility 0.7% Secondary Unit Task Force 0.1% BramWest Interim Library Branch 0.0% Total New or Enhanced 2.4% Page 18 Page 18

19 New or Enhanced: Züm Service Improving Your Ride Highlights Increasing our fleet of transit buses o Add 34 new Züm buses to expand bus rapid transit and provide connections to regional transit services such as Malton GO Station near Pearson Airport Transit ridership has increased at an unprecedented rate: o 88% increase since 2009 o 17% year over year (2017 vs 2016) New or Enhanced Service % Züm Service Increase 1.0 Page 19 Page 19

20 New or Enhanced: Fire Your Safety is Top Priority Highlights Add new fire trucks and firefighters to provide full response over three years Build a fully centralized fire campus which will include space for: o A fire station o A training facility o An emergency operations centre o A new headquarters New or Enhanced Service % Fire Full Response Enhancement 0.4 Fire Headquarters and Training Facility 0.7 Page 20 Page 20

21 New or Enhanced: Secondary Unit Task Force Secondary Unit Task Force Highlights Focus on illegal second unit housing, lodging houses, and group homes Utilize advanced and innovative investigative strategies to combat the proliferation of illegal units in housing within the City of Brampton It is expected that the number of illegal units will substantially increase with the anticipation of a university and population growth New or Enhanced Service % Secondary Unit Task Force 0.1 Page 21 Page 21

22 New or Enhanced: Interim Library Branch Interim Library Highlights The development of a new BramWest (Embleton) interim location is in anticipation of the City of Brampton combined facility community centre This service expansion is in support of the Brampton Library strategic plan where there are flexible service points servicing a rapidly growing city New or Enhanced Service % BramWest Interim Branch (2018 and 2019) 0.02 Page 22 Page 22

23 Operating Overview Proposed Budget Variances CATEGORY Base Operating and Growth (3,094) 1,856 6,889 Infrastructure Levy 8,961 9,112 9,424 New or Enhanced Services 10,667 13,652 5,537 PROPERTY TAX LEVY INCREASE $ 16,534 $ 24,619 $ 21,850 Budget Increase % 3.7% 5.4% 4.6% 2018 Operating Budget = $678M 1% of City property tax levy = $4.5M Page 23 Page 23

24 Operating Overview: Full Accrual Accounting Property Tax Related Expenditure Budget $677,985 Less: Contributions to Reserve Funds 76,151 Add: Amortization (Depreciation Expense) 129,459 Project Expenses that are Operating in Nature 40,686 Post Employment and Other Liabilities 4,600 Full Accrual Expenditure Budget 776,579 Property Tax Related Revenue Budget 677,985 Less: Contributions from Reserve Funds 34,196 Add: Recognized Development Charges, Grants & Subsidies 164,113 Developer Contributed Assets 44,215 Interest Earned on Reserves 11,477 Full Accrual Revenue Budget 863,594 Net Surplus / (Deficit) $87,016 Page 24 Page 24

25 Hospital Levy Peel Memorial Centre for Integrated Health and Wellness $60 million collected over six years 6-year levy introduced on property tax bill $40 million paid to Peel Memorial (phase 1) Reduction in levy Public engagement Collection of levy (funds invested) Levy to be removed Page 25 Page 25

26 Capital Overview Proposed Budget ($000s) TOTAL Public Works & Engineering 107, , , ,241 Community Services 95, ,301 52, ,820 Transit 32,133 40,823 41, ,559 Corporate Services 13,137 8,097 9,216 30,450 Fire & Emergency Services 5,875 6,036 3,241 15,152 Planning & Development Services 2,897 1,062 1,062 5,021 Other 1,126 1,801 1,263 4,190 Totals $ 258,253 $ 338,462 $ 262,718 $ 859,433 Page 26 Page 26

27 Capital Overview: Fire Your Safety is Top Priority Highlights Add new and replacement fire trucks Add new and replacement other fire vehicles, firefighting and dispatch equipment Continue to invest in fire prevention and fire training Build a fully centralized fire campus which will include space for: o A fire station o A training facility o An emergency operations centre o A new headquarters Capital Funding Sources Development Charges $5.2 million Tax Based - $20.6 million Internal Debt - $1.8 million External Debt - $42 million Page 27 Page 27

28 Capital Overview: Transit Improving Your Ride Highlights Increasing our fleet of transit buses by 16% over three years o Add 31 new buses to provide conventional transit service in growth areas o Add 34 new Züm buses to expand bus rapid transit and provide connections to regional transit services such as Malton GO Station near Pearson Airport Continue to invest in existing fleet through refurbishment and replacement as required Capital Funding Sources Tax Based - $12.2 million Internal Debt - $18.7 million Grants - $83.7 million Page 28 Page 28

29 Capital Overview: University Better Education Highlights A transformative project, benefiting the entire community City is contributing up to $50 million over 10 years for a post-secondary facility City will invest up to $100 million for a jointuse centre for education, innovation and collaboration (CEIC) that will: o Provide a new flagship central library, entrepreneurial and cultural space o Reflect Brampton s commitment to lifelong learning and innovation Funding Source (University) Legacy Fund draw - $50 million Capital Funding Source (CEIC) External Debt - $100 million Based on significant student enrollment, could generate: A construction impact of 2,530 new jobs An ongoing impact of 1,875 jobs Annual student and visitor spending of $33 million Page 29 Page 29

30 Capital Overview: Downtown Reimagined Lively Community Spaces Highlights A reimagined downtown to create an integrated open space and an exciting venue for gatherings, events and festivals Create a new streetscape that will bring pedestrians and cyclists together in a safe and a sustainable manner Invest $30 million to complete the Downtown Reimagined project Capital Funding Source External Debt - $31.4 million Page 30 Page 30

31 Capital Overview: Recreation A More Active Brampton Highlights Continue to invest in new programming and ensure recreations centres remain vibrant community hubs Launch STEM (Engineering and Robotic) recreation programs for ages 3 to 14 Expand and improve community centres in the Bramalea area Implement new program registration software to improve functionality and ease of use for staff and the public Capital Funding Sources Development Charges $40.6 million Tax Based - $24.5 million Cash-in-Lieu of Parkland - $6.9 million Page 31 Page 31

32 Capital Overview: Debt Financing 2018 Debt and Borrowing ($000s) Project Description Terms in Years Rate Total Debt Estimated Yearly Repayment Internal Debt - Tax Supported Bus Purchases % $7,466 $1,620 Fire Growth Vehicles % Sub-Total 8,366 1,815 Centre for Education, Innovation and External Debt - Tax Collaboration % $20,000 $1,365 Supported Fire and Emergency Services Campus % 42,000 2,860 Sub-Total 62,000 4, Total $70,366 $6,040 Page 32 Page 32

33 Capital Overview: Debt Financing 2019 Debt and Borrowing ($000s) Project Description Terms in Years Rate Total Debt Estimated Yearly Repayment Internal Debt - Tax Supported Bus Purchases % $4,666 $1,010 Fire Growth Vehicles % Sub-Total 5,566 1,205 External Debt - Tax Supported Centre for Education, Innovation and Collaboration % $80,000 $5,445 Downtown Improvements % 31,400 2,027 Riverwalk % Sub-Total 112,100 7, Total $117,666 $8,727 Page 33 Page 33

34 Capital Overview: Debt Financing 2020 Debt and Borrowing ($000s) Project Description Terms in Years Rate Total Debt Estimated Yearly Repayment Internal Debt - Tax Supported Bus Purchases % $6,534 $1,420 Sub-Total 6,534 1,420 External Debt - Tax Supported Riverwalk % $1,000 $70 Sub-Total 1, Total $7,534 $1,490 Page 34 Page 34

35 2018 Residential Tax Bill School Boards, $793 City of Brampton, $2,221 Typical Residential Tax Bills Region of Peel, $1,802 Hospital Levy, $41 Average Residential ($471,000) $4,857 Single Family Detached ($538,900) $5,558 Semi Detached ($392,900) $4,052 Freehold Townhouse ($375,900) $3,876 Condominium ($255,300) $2,633 *Based on 2018 Average Home Assessment of $471,000 Overall Total Increase = $27 per $100,000 assessed value Page 35 Page 35

36 2018 Property Tax Impact City of Brampton Net budget increase = 3.7% Tax Bill Impact = 1.7% Region of Peel Net budget increase = 2.6% Tax Bill Impact = 1.0% School Boards Net budget increase = 0.0% Tax Bill Impact = 0.0% $80 on average home $46 on average home $0 on average home Overall Property Tax Tax Bill Impact 2.7% $126 on average home * Based on 2018 Average Home Assessment of $471,000 Page 36 Page 36

37 2018 Property Tax Impact 2.7% Overall Tax Impact City, Region, School Boards Page 37 Page 37