CITY OF BRAMPTON Budget Highlights. As Approved by City Council on February 23, 2011

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1 CITY OF BRAMPTON 2011 Budget Highlights As Approved by City Council on February 23, 2011

2 EXEXCUTIVE SUMMARY The current economic climate, meeting provincial growth targets and other budget drivers places a significant strain on the City s finances and revenue streams To address these issues, we have curtailed spending where possible and deferred implementing new programs Our goal is to insulate taxpayers while maintaining service levels and preserving the City s physical assets 2

3 WHERE YOUR TAXES GO 55% 35% 2% 8% Province Federal Municipal Education 3

4 TWO TIERED SERVICE DELIVERY APPROACH Region of Peel Area Municipality - Brampton Tax Supported Police (including 911) Conservation Authorities Public Health Programs Social Assistance, Employment Supports Homelessness & Community Grants Early Learning and Childcare Long Term Care Waste Management Roads and Traffic* Planning* Development Services Social Housing Paramedic Services/Ambulance Accessible Transportation Assessment Services Heritage, Arts & Culture* Utility Rate Supported Water Wastewater Conservation Authorities 4 Tax Supported Fire and Emergency Transit Parks Maintenance Recreation Facilities and Programs Arts and Culture* Libraries Provincial Offences Court Local and Arterial Roads Bridges and Watercourse Storm Sewers Winter maintenance* Municipal Planning and Zoning* Building Controls and Inspection Tax Collection *Shared services

5 2011 BUDGET CONTEXT Economic Conditions National economy improving but still uncertain Federal / Provincial stimulus ending Interest rate uncertainty Peel and Brampton local economy employment improving, not yet back to peak Brampton building permits 2 nd highest in GTA but still below 2008 level and 4,500 benchmark Impact of slower development in on assessment growth still to come 5

6 2011 BUDGET CONTEXT Financial Capacity Mandate as a high growth municipality drives spending priorities Population to grow by 43% over 20 years Need to ensure growth pays for growth Goal is to have infrastructure in place in advance of development New infrastructure drives future operating expenses 6

7 2011 BUDGET CONTEXT Infrastructure Deficit 2011 Funding Gap FUNDED R&R CAPITAL $45M 36% Requirement $125M $887M Funded $45M $530M Unfunded $80M $357M UNFUNDED R&R CAPITAL $80M 64% 7

8 2011 BUDGET OBJECTIVES Maintain priority service levels Ensure continued value for money in the provision of all City services Target limited capital funds to support managed development Phase service expansion for transit and implement a modest transit fare increase (25 cents) Leverage Federal Gas Tax revenues Resume addressing the infrastructure deficit Set foundation for a sustainable capital funding strategy 8

9 2011 BUDGET OBJECTIVES Focus on Existing Services 3,180 Lane kilometres of road 4,977 Acres of parkland (including sports fields, playgrounds, boulevards and buffers, pathways and trails, flowers and shrub beds) 73 Corporate buildings (including corporate, parks, transit, works, and libraries) 67 Recreation and community facilities including arenas, pools, theatres, etc. 12 Fire stations 9

10 2011 BUDGET PLAN Reduction Measures No salary increase for staff other than cost of living Hire essential staff only Absorb cost of inflation and HST on goods and services Reduce administrative expenditures (e.g. travel, training, advertising etc.) Defer capital maintenance Delay the introduction of programs Focus on core Library services 10

11 2011 BUDGET PLAN: Current Budget Service Improvements Züm service delivery Mount Pleasant library and facilities Corporate and recreation facilities, roads, and new parks development Provision for Integrity Commissioner Creative economy plan (HACE) International business development Seniors fare reduction (Ride for a Loonie ) Pledge to Peel Memorial Hospital redevelopment 1% Dedicated Infrastructure levy 11

12 2011 BUDGET PLAN: Current Budget Budget Budget Variance Expenditures $408.2 $429.5 $ 21.3 Revenues ($408.2) ($418.6) ($10.4) Net $ 0.0 $10.9 $ 10.9 Total Tax levy $ $ Since the City cannot budget for a deficit, net revenue shortfall of $10.9M to be funded from increase in tax levy 1% tax levy increase generates $2.6 million 12

13 2011 BUDGET PLAN: Current Budget Total Residential Tax Bill ($3,799) Taxes Paid to EachLevelof Government by Ontario Residents 55% Components of Average Residential Tax Bill* 35% 2% 8% Province Federal Municipal Education 40% $1,527 40% $1,526 20% $746 *Average residential assessment of $320,000 1% budget increase = $2.6M Region City Education 13

14 2011 BUDGET PLAN: Current Budget Approved Budget Increase Base Budget Requirements 2.9% Budget Committee Recommendations Seniors Fare reduction - Ride for a Loonie $560K Brampton Downtown Development Corp $4K Pledge for Peel Memorial Hospital $1 Subtotal 3.1% Dedicated Infrastructure Levy 1.0% Total Approved Budget Increase 4.1% 14

15 2011 BUDGET PLAN: Current Budget Approved Budget Increase 4.1%, equivalent to $61 on the City s portion of the average residential tax bill In combination with a 2.5% Region Budget increase and assuming no change in the Education tax, the combined tax bill would rise by 2.6% 15

16 2011 BUDGET PLAN: Current Budget 2010 TAX BILL % BUDGET INCREASE 2011 TAX BILL* $ CHANGE % CHANGE IN TOTAL CITY $1, % $1,526 $61 1.6% REGION $1, % $1,527 $37 1.0% EDUCATION $746 tbd $746 tbd tbd TOTAL $3,701 $3,799 $98 2.6% * Based on average residential assessment value of $320,000 Note: A 4.1% tax increase on the City portion of the residential tax bill translates into a 1.6% tax increase or $61 (approx.) on the total residential tax bill 16

17 2011 BUDGET PLAN: Current Budget City: $1,526 Region: $1,527 Education: $746 Annual Taxes: $3,799 17

18 2011 BUDGET PLAN: Current Budget Increase in Typical Residential Tax Bills City Portion Single Family Detached ($365,000) $69 Semi Detached ($270,000) $51 Freehold Townhouse ($252,000) $48 Condominium ($191,000) $36 Average Residential ($320,000) $61 $19 increase per $100,000 of residential assessment (approximate) 18

19 2011 BUDGET PLAN: Current Budget Residential Tax Comparisons Municipalities SINGLE DETACHED(1) Markham $4,311 Vaughan $3,884 Oshawa $3,848 Whitby $3,582 Hamilton $3,540 Mississauga $3,495 Brampton $3,352 Richmond Hill $3,202 Oakville $3,200 Burlington $3,124 SENIOR EXECUTIVE (2) Oshawa $5,859 Hamilton $5,792 Markham $5,577 Burlington $5,548 Whitby $5,459 Oakville $5,412 Vaughan $5,367 Richmond Hill $5,214 Mississauga $5,015 Brampton $5, Bedroom, 1200 sqft Bedroom, 3000 sqft Source: BMA Management Consulting Inc. (2010) 19

20 2011 BUDGET PLAN: Current Budget Distribution of 2011 Tax Bill City Portion Only of $1,526 is distributed as follows: FIRE AND EMERGENCY SERVICES TRANSIT WORKS & TRANS OPERATIONS PARKS OPERATIONS RECREATION FACILITIES BRAMPTON PUBLIC LIBRARY FLEET SERVICES ECONOMIC DEVELOPMENT AND COMM. BY-LAW ENFORCEMENT PLANNING, DESIGN AND DEVELOPMENT COMMUNITY DEVELOPMENT & SERVICE PLANNING THEATRES ENGINEERING & CONSTRUCTION ANIMAL SERVICES BUILDING DESIGN & CONSTRUCTION EMERGENCY PREPAREDNESS $13.27 $12.48 $3.66 $16.56 $36.55 $35.45 $35.43 $56.01 $42.15 $41.92 $91.35 $ $ $ $ $ Based on average house with an assessed value of $320,000. Total property tax bill is $3,

21 2011 BUDGET PLAN: Capital Budget Capital Budget Priorities Responsible growth management: infrastructure required in advance of development (road network) Transit Recreation facilities Libraries Fire Station upgrades Infrastructure replacement/maintenance 21

22 2011 BUDGET PLAN: Capital Budget Capital Budget by Program BUILDINGS AND PROPERTY MANAGEMENT 2.2% BRAMPTON PUBLIC LIBRARY 1.1% OTHER DEPARTMENTS 0.03% FIRE AND EMERGENCY SERVICES 1.8% PARKS AND RECREATION 20.4% FINANCIAL AND INFORMATION SERVICES 4.2% PLANNING, DESIGN AND DEVELOPMENT 0.8% TRANSIT 15.97% PUBLIC WORKS 53.5% 22

23 2011 BUDGET PLAN: Capital Budget Budget by Funding Source Federal / Provincial Subsidies* 28.9% External Recoveries 8.1% Other funding 8.8% Internal Borrowing 11.5% Brampton Public Library 0.7% Tax Based Capital Contributions 5.6% 10% Non Development Charge Requirement 1.2% Development Charge Reserve Funds 38.5% *Federal and Provincial subsidies account for a significant portion of 2011 Capital funding due to the rate of expenditure on Zum rapid transit service 23

24 2011 BUDGET PLAN: Capital Budget Current Year Capital Projects Roads Chinguacousy Road widening (Steeles to Major William Sharpe) Cottrelle Blvd (Humberwest to Goreway) Creditview reconstruction (North/South Spine Road to Farhill) WanlessDrive widening / reconstruction (Creditviewto Chinguacousy) Ebenezer Road Widening (Gore Road to Clarkway Valley) 24

25 2011 BUDGET PLAN: Capital Budget Current Year Capital Projects New facility and park development Bram East Community Parkland Campus Sesquicentennial City Wide parkland purchase Additional funding for neighbourhood parks and valleyland development New Works Yards (additional funding) Transit: Züm service and conventional growth Library collection development 25

26 2011 BUDGET PLAN: Capital Budget Current Year Capital Projects Repair and replacement Road resurfacing Stormwater pond maintenance Corporate buildings Indoor and outdoor recreation facilities Energy systems Fleet equipment Information Technology infrastructure 26