Living. Thriving. Leading. CORPORATE BUDGET OVERVIEW Presented to Council November 2, 2017 1
Agenda Overview of Operating Budget Tax Supported Services Utility Rate Supported Services Capital Plan Summary of 2019 2021 Outlook 2 2
Bottom Line Impact PROPERTY TAX INCREASE UTILITY RATE INCREASE 1.0% Council s Target +$47 Residential +$85 Small Business Owner 6.5% + $41 Residential + $99 Small Business Owner 3 3
Respect for the taxpayer Ensure Capital Plan is sustainable Work with local municipalities Maintain assets Borrow for long term assets Value for money Users pay where appropriate Reflects Peel s Financial Principles Maintain flexibility to mitigate volatility in rates Prudent investing 4 4
Living: People s lives are improved in their time of need. Thriving: Communities are integrated, safe and complete. Leading: Government is future-oriented and accountable. $3.1 billion invested in services that advance and support Council s current term priorities and longer term outcomes $847 million $1.35 billion $175 million $2.4 billion Operating Budget $23 million $666 million $34 million $0.7 billion Capital Budget 5 5
Living: People s lives are improved in their time of need. $847 million OPERATING Responding to 127,181 emergency calls Providing 689,750 accessible transportation passenger trips Providing 15,400+ fee subsidies making it possible for lower-income families to benefit from licensed child care Improving People s Lives Providing 11,380+ housing subsidies 800+ residents receiving quality long term care Providing 14,000+ people with shelter beds and transitional housing $23 million CAPITAL FOCUS AREA SERVICES: Accessible Transportation Paramedics Adult Day Long Term Care Community Investment Income Support Employment Support Housing Support Homelessness Support Child Care 6 6
Thriving: Communities are integrated, safe and complete. $1.35 billion OPERATING $666 million CAPITAL Treating 593 million litres of watereach day to provide 335,000+ customers safe drinking water Peel Regional Police responding to 230,691citizen initiated events and Ontario Provincial Police to 28,700+ calls 90% of students receive full immunizations, offering them protection from getting or spreading infectious diseases FOCUS AREAS SERVICES: Early Growth and Development Chronic Disease Prevention Infectious Disease Prevention Water Supply Wastewater Waste Roads and Transportation Land Use Planning Heritage, Arts and Culture Police Services Conservation Authorities Assessment Services Integrated, Safe and Complete Communities Maintaining 1,666 lane kilometresof road to help keep residents safe and traffic moving 500,000 tonnes of waste managed for 343,600 curbside and 101,800 multi-residential households Welcoming 30,000 visitors with local arts and exhibitions at PAMA 7 7 7
Leading: Government is future-oriented and accountable. $175 million OPERATING $34 million CAPITAL Our Contact Centre provided live support to 1 million contacts 72% Employee engagement 8 out of 10 client satisfactionrating A Future-Oriented and Accountable Government 75%of residents reported the Region provides value for tax dollars Earned a Triple-A credit rating the highest possible rating Maintaining $26B of Regional assets, such as roads, bridges and buildings FOCUS AREA SERVICES Corporate Services Finance Service Innovation and Information Technology 8 8
Doing Better Continuing to find ways to save money 20 improvement initiatives completed in 2016/2017 Cost Savings - $3.6 million Cost Avoidance - $4.2 million $ Millions Costs Mitigated 2010-2017 Regionally Controlled Tax Supported $252.8 Utility Rate Supported 92.1 TOTAL $344.9 9 9
Managing Risks Legislation and Regulations External Funding Levels Climate/Weather Labour Costs Economic and Market Volatility 10 10
Operating Budget Overview Tax Supported Operations 1.8% Provincial Upload (0.7%) Ontario Works Benefit ($4.8 M) Employment ($0.4 M) Court Security Costs ($1.4 M) Utility Rate Supported Operations 1.5% Infrastructure Levy 5.0% Average Utility Rate Increase 6.5% Reinvestment of the tax room made available by the Provincial upload of the costs of Ontario Works to support affordable housing (Resolution 2016-601) 0.5% Infrastructure Levy 1.0% Net Tax Levy 2.6% Property Tax Increase* 1.0% *Property Tax increase assumes 41% is Region s Portion 11 11
What the Average Property Tax Bill Funds PEEL REGION 41% LOCAL MUNICIPALITIES 40% EDUCATION 19% 12 12 12
Proposed Operating Budget *Conservation Authorities $45M, 2% *MPAC $19M, <1% *Police Services $459M, 19% TOTAL EXPENDITURES: Tax & Utility $2.4 billion Regional Services $1,850M, 78% *External Agencies Operating Budget total $523M MPAC: Municipal Property Assessment Corporation 13 13
Users Pay Where Appropriate Grants and Subsidies $624M, 26% Utility $389M, 16% Other $321M, 14% Less than half funded by Property Tax Property Tax $1,039M, 44% 14 14
Labour Costs 27% of Budget Labour Costs Utility Rate Based $67M, 4% Labour Costs Subsidy Based $153M, 8% Labour Costs Property Tax Based $279M, 15% Program Services & Capital Reserves Contribution $1,351M, 73% Total Regionally Controlled Services Budget $1.85B Total Labour Costs at 27% $499M 15 15
Non-Labour Costs 73% of Budget Labour Costs $499M, 27% Total $1.8B Program Services $310M, 23% Capital Reserve Contribution Tax & Utility $334M, 25% Other Services Contracted Out $196M, 14% Non-Labour Costs Grants, Subsidies & Transfer Payments $511M, 38% Note: Regionally Controlled Services only 16 16
People Delivering Services to People Regionally Controlled Tax Supported: Staffing Full Time Equivalents (FTEs) 2017 Revised 2018 Proposed (FTEs) Additions (FTEs) Living 2,055 30.75 2,086 Thriving 1,165 5.0 1,170 Leading 723 4.0 727 Regionally Controlled Tax 3,943 39.75 3,983 Utility Rate Supported - Thriving 501 12.5 513 SUBTOTAL 4,444 52.25 4,496 Thriving -transfer of OntarioEarly Years Child and Family Centers (OEYCFC) Note: Includes making 8.5 positions permanent to maintain service levels. Numbers may not add due to rounding. 6.0 6.0 TOTAL Regionally Controlled 4,444 58.25 4,502 17 17
TAX SUPPORTED OPERATING 18 18
Respect for the Tax Payer Council s Target Proposed Budget Net Expenditure 3.2% 3.3% Halton Conservation 3.2% 8.9% Peel Regional Police 3.2% 4.3% Credit Valley Conservation* 3.2% 3.6% Toronto Region Conservation* 3.2% 3.2% Regionally Controlled 3.2% 3.0% OPP 2.7% 1.5% Assessment Growth (1.10%) (1.25%) Sub-total 2.1% 2.1% Affordable Housing** 0.5% 0.5% Net Levy 2.6% 2.6% * Exclude one-time costs such as Emerald Ash Borer costs & Bolton Camp ** Reinvestment of the tax room available from the provincial upload of Ontario Works costs to support affordable housing (Resolution 2016-601) 19 19
Tax Supported Budget Increases Regionally Controlled External Agencies* Total ($Millions) 2017 Services to 2018 Population $5.1 $11.0 $16.1 Cost Mitigation (3.1) N/A (3.1) Service investments 12.6 9.5** 22.1 Capital Infrastructure (1%) 10.0-10.0 TOTAL INCREASE $24.6 $20.5 $45.1 *External Agencies include: Peel Regional Police (PRP) Ontario Provincial Police Caledon Conservation Authorities (CAs) Municipal Property Assessment Corporation ** Includes PRP s service demand of $8.5 million and CAs special levy of $1.0 million. 20 20
Living: People s lives are improved in their time of need. $9.8 million OPERATING +30.75 FTEs +6,000paramedic response calls +39,000 more accessible transportation rides Improving People s Lives Investing $4.5 million fortwin Pines transition plan, leading to future development Improved care for Peel Manor residents +10 Beds atbrampton Youth Shelter Note: Regionally Controlled Tax Services 21 21
Thriving: Communities are integrated, safe and complete. $2.6 million OPERATING +11 FTEs Oversight of Ontario Early Years Child and Family Centers Maintaining PAMA s 90+ exhibitions Seniors Dental enhancements Integrated, Safe and Complete Communities Focusing on residents harm reduction: expanded needle exchange and Naloxone Opioid Overdose Kits Adding 4,000 new households to waste collection service Note: Regionally Controlled Tax Services 22 22
Leading: Government is future-oriented and accountable. +$0.2 million OPERATING +4 FTEs Managing benefit costs with savings of more than $3 million to date Increasing first point of contact resolution for Peel residents A Future Oriented and Accountable Government Appointment of an Integrity Commissioner and Lobby Registrar Note: Regionally Controlled Tax Services 23 23
Respect for the Tax Payer Request $ Millions Funding Sources $ Millions 2017 Services to 2018 Population $2.0 Service Demands 12.6 Gap of $26 million funded by a Provincial Upload: Ontario Works Benefit Employment CourtSecurity $4.8 $0.4 $1.4 Capital Infrastructure (1%) 10.0 Regionally Controlled 24.6 External Agencies 20.5 TOTAL Requests $45.1 1.0% Property Tax increase Sub-total 6.6 Assessment Growth 12.5 TOTAL Revenues $19.1 *External Agencies include: Peel Regional Police (PRP) Ontario Provincial Police Caledon Conservation Authorities (CAs) Municipal Property Assessment Corporation ** Includes PRP s service demand of $8.5 million and CAs special levy of $1.0 million. 24 24
Where Your 2018 Tax Dollars Will Be Spent Based on $100,000 of Residential Assessment Police Conservation Authorities MPAC Housing Support Waste Management Waste Roads and Roads Transportation and Traffic Capital Capital Investment Investment Plan Plan Paramedic Paramedic Paramedics Services Services Long Long Term Term Care Care Income Income Support Support Accessible Accessible Transportation Transportation Enterprise Enterprise Programs Programs and & Services Services Early Growth and Development Early Growth and Development Homelessness Support Homelessness Support Chronic Disease Prevention Chronic Disease Chronic Prevention Disease Infectious Disease Prevention Infectious Disease Prevention Child Care Child Care Community Investment Community Investment Heritage, Arts and Culture Heritage Arts and Culture Land Use Planning Land Use Planning Employment Support Employment Support Adult Day Adult Day A house with a value of $484,000 will see an increase of $47; 2018 Tax $1,889 Per $100,000 assessment value: Property Tax increase: $9.75 2018Property Tax: $390.32 $- $40 $80 $120 $160 $200 External Agencies Regionally Controlled Services 25 25
UTILITY RATE SUPPORTED OPERATING 26 26
Utility Rate Supported Budget Increases Provides water and wastewater services for 4,750 new customers 2018 Net Increase ($Millions) Maintain Service Level $5.5 Cost Mitigation ($2.2) Service Demand (includes 12.5 FTEs) $0.6 Capital Infrastructure $16.5 Total Increase $20.4 Average Utility Rate Increase 6.5% 27 27
Users Pay Where Appropriate Utility Rate Payer Impact Annual Consumption Residential Small Business 290m 3 695m 3 Annual Increase $41 $99 Annual Water Bill $659 $1,683 28 28
Utility Rates are Competitive 1200 1000 $1,023 $1,091 $1,120 $1,051 800 600 $659 $41 400 $618 200 0 * * * * *Based on 2017 Residential Rates Note: York Region - average of three municipalities: Markham, Vaughan & Richmond Hill 29 29
CAPITAL BUDGET 2018Budget CAPITAL BUDGET 30
CAPITAL BUDGET Ten Year Capital Plan Regionally Controlled Tax $2,776M, 39% Conservation Authorities $22M, <1% Tax & Utility $7.2 Billion Peel Regional Police $398M,6% Utility Rate Supported $3,971M, 55% Capital Budget Funding: 58% Reserves 39% Development Charges 3% External 31 31
CAPITAL BUDGET Ten Year Capital Plan Regionally Controlled - $6.7B Living: People s lives are improved in their time of need. $683.5M Thriving: Communities are integrated, safe and complete. $5,839.6M Leading: Government is future-oriented and accountable. $224.0M 32 32
CAPITAL BUDGET Financing the Capital Plan Capital Reserves $3,759M, 56% External $239M, 4% Development Charges $2,749M, 40% Note: Regionally Controlled Services 33 33
CAPITAL BUDGET Capital Plan Investments - $6.7B State of Good Repair $2.8B 42% DC Funded Growth $2.7B 40% Non DC Funded Growth & Council Priorities $1.2B 18% Note: Regionally Controlled Services 34 34
CAPITAL BUDGET Ensure the Capital Plan is Sustainable Tax Supported 1% Infrastructure Levy Unfunded gap 1% 4 years Tax Supported 2018 2027 Non DC Capital Plan Portion to be Funded from Tax 1% in 2018 Total Available Funding (including interest) $2.06B $1.62B Seniors Health & Wellness Village 10-Year Outlook Total Asset Value: $3.4B Note: Regionally Controlled Services 35 35
CAPITAL BUDGET Ensure the Capital Plan is Sustainable Utility Rate Supported 5% Infrastructure Rate Increase Unfunded gap -requires 5% 4 years 5 % in 2018 Utility Supported 2018 2037 Non DC Capital Plan Portion to be Funded from Utility Rate $5.47B Total Available Funding (including interest) $3.61B 20-Year Outlook Total Asset Value: $22.8B 36 36
CAPITAL BUDGET Ensure the Capital Plan is Sustainable Why Increase Infrastructure Levy To match Federal & Provincial infrastructure funding To manage unanticipated capital work To sustain 2019 and future capital program To manage credit rating risk 37 37
CAPITAL BUDGET Borrow Only for Substantial Assets 30% 25% 20% Provincial Maximum Annual Repayment Limit 15% 10% 5% 0% 2017 2018 2019 2020 2021 2022 2023 DC Debt Forecast Other Debt Forecast Savings Impact From of Growth 2012 Management DC Background Strategy Study Forecast 38 38
CAPITAL BUDGET Capital Budget Tax & Utility Rate Supported $723 Million Regionally Controlled Tax Supported $206M, 29% Peel Regional Police $54M, 7% Utility Rate Supported $463M, 64% Capital Budget Funding: 47% Reserves 33% Development Charges 20%External 39 39
CAPITAL BUDGET Capital Budget Living: People s lives are improved in their time of need. Thriving: Communities are integrated, safe and complete. Leading: Government is future-oriented and accountable. $23 million $612 million $34 million Ambulance Fleet and Support Vehicles TransHelp- Mavis Yard Maintain Long Term Care Homes Maintain Affordable Housing Note: Regionally Controlled Services Mississauga City Center Watermain Williams Parkway Sub-Transmission Main G.E. Booth Water Pollution Control Plant Downtown Brampton Sanitary Sewer Remediation Property Acquisitions (Mayfield to King & Airport to Gore) Resurfacing Roads Maintain Technology Assets Maintain Office Facilities 40 40
BUDGET SUMMARY 41 41
Respect for the Taxpayer Tax Supported Programs 2018 Council s Target 2018 Proposed Budget Net Expenditure Increase: 3.2% 3.3% Regionally Controlled Services 3.2% 3.0% External Agencies 3.2% 4.3% Assessment Growth (1.1%) (1.25%) Sub-total 2.1% 2.1% Reinvestmentof Ontario Works Provincial Uploadin Affordable Housing (2016-601)* Net Tax Levy 0.5% 0.5% 2.6% 2.6% Utility Supported Programs Operations 2.0% 1.5% Capital Infrastructure 3.5% 5.0% Average Utility Rate Impact 5.5% 6.5% 6.5% 42 42
Average Residential Property Tax Impact Local Municipality Net Levy Increase Overall Property Tax Increase 3.0% 2.2% Education 4.0% 2.6% 1.0% * 0.0% 5.0% 3.0% NTL: net tax levy increase Assumptions: * Peel 41% (2.6% NTL increase) Education 19% (0% increase) Local 40% ( 3% NTL =1.2% property tax increase, 4%=1.6%, 5%=2.0%, 6%=2.4%) 6.0% 3.4% 43 43
Supporting Those with Low Income MANDATORY PROGRAMS: Long Term Care Accommodation Peel Access to Housing Child Care Fee Subsidy Ontario Works OPTIONAL PROGRAMS: Affordable Transit Tax Relief for Low-income Seniors and those with disabilities Preventing Homelessness in Peel Seniors Dental Program 44 44
2019 2021 OUTLOOK 45 45
2019 to 2021 Outlook 2019 2020 2021 Net Tax Levy Increase * 3.6% 3.0% 2.9% Utility Rate Increase ** 7.1% 6.7% 6.0% *Includes 1% for Tax Supported Capital plan and assumes 1.1% for Assessment Growth ** Includes 5% Reserve Contribution for Utility Rate Supported Capital Plan 46 46
2019 Budget Target Tax Supported Programs 2019 Forecast Proposed 2019 Target * Net Expenditure 4.4% 3.2% Halton Conservation 9.1% 3.2% Credit Valley Conservation* 7.0% 3.2% Regionally Controlled 4.7% 3.2% Peel Regional Police 4.1% 3.2% OPP 2.5% 2.5% Toronto Region Conservation* 1.7% 1.7% Assessment Growth (1.1%) (1.1%) Sub-total 3.3% 2.1 CouncilDirected e.g. Waste Diversion, Sidewalks & Multi-Use Trails, Seniors Health & Wellness Centre 0.3% 0.3% Net Tax Levy 3.6% 2.4% * Excludes one time costs related to Emerald Ash Borer 47 47
Next Steps Next Steps: Regionally Controlled Service Presentations Future Budget Meetings: Thursday November 16 External agencies Peel Regional Police Ontario Provincial Police Conservation Authorities: - Conservation Halton - Toronto & Region Conservation Authority - Credit Valley Conservation Authority Regional Budget Summary Thursday November 23 As required 48 48
Living Thriving Leading People s lives are improved in their time of need. Communities are integrated, safe and complete. Government is future-oriented and accountable. Investing in better outcomes for residents 49 49