Description Ref # 2011 Proposed Cost Tax Levy (e.g. starting point for 2012 is the 2011 Tax Levy incl. PCs; similarly for 2013-20) $113,986 $ 116,865 $ 121,059 $ 126,093 $ 126,637 $ 129,429 $ 132,574 $ 135,163 $ 137,928 $ 140,965 Operating Challenges: Recurring issues (historic assumptions) 1-12 $ 3,021 $ 4,501 $ 4,487 $ 362 $ 4,134 $ 4,313 $ 4,350 $ 4,432 $ 4,471 $ 4,504 Capital impact on current 14 $ 570 $ 584 $ - $ - $ - $ - $ - $ - $ - $ - Tax Room Transfer 13 $ 950 $ 930 $ 910 $ - $ - $ - $ - $ - $ - $ - Debt Charges 15 $ - $ - $ 600 $ 600 $ 600 $ 600 $ - $ - $ - $ - Economic Recovery $ 1 $ - $ - $ - $ - $ - $ - $ - $ - $ - Identified Operating Challenges 16-18 $ 1,709 $ 126 $ 100 $ 100 $ 50 $ - $ - $ - $ - $ - Total Challenges $ 6,251 $ 6,141 $ 6,097 $ 1,062 $ 4,784 $ 4,913 $ 4,350 $ 4,432 $ 4,471 $ 4,504 Potential Solutions Assessment Growth 19 $ (1,869) $ (1,402) $ (1,332) $ (1,261) $ (1,266) $ (1,165) $ (1,061) $ (946) $ (828) $ (705) Investment Income 20 $ (500) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) Additional Solutions including cost containment and 21 $ (1,967) $ (1,300) $ (1,300) $ (900) $ (900) $ (900) $ (900) $ (900) $ (900) $ (900) new/increased revenues Total Potential Solutions $ (4,336) $ (2,802) $ (2,732) $ (2,261) $ (2,266) $ (2,165) $ (2,061) $ (1,946) $ (1,828) $ (1,705) Sub-Total $ 1,915 $ 3,339 $ 3,365 $ (1,199) $ 2,517 $ 2,748 $ 2,289 $ 2,486 $ 2,644 $ 2,799 Sub-Total Levy $ 115,901 $ 120,204 $ 124,424 $ 124,894 $ 129,154 $ 132,177 $ 134,863 $ 137,649 $ 140,572 $ 143,764 Tax Impacts of Items 1-21 GTA Tax Room to Capital 0.83% 0.80% 0.75% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Net City 0.85% 2.06% 2.03% -0.95% 1.99% 2.12% 1.73% 1.84% 1.92% 1.99% Province of Ontario (Education) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Region of Halton (2016-2020 does not include an increase for Police) 1.40% 2.80% 2.60% 3.00% 2.70% 2.50% 2.50% 2.50% 2.50% 2.40% Overall Tax Bill Impact (%) 1.17% 2.17% 2.07% 0.80% 1.83% 1.81% 1.67% 1.72% 1.76% 1.75% Overall Tax Bill Impact ($/$100,000 CVA) $ 11.93 $22.30 $21.81 $8.55 $19.78 $19.94 $18.71 $19.61 $20.39 $20.68 Service Enhancements / New Initiatives incl. Impact on Operating as a result of Capital Projects 22-59 $ 964 $ 855 $ 1,669 $ 1,743 $ 275 $ 397 $ 300 $ 279 $ 393 $ 344 Contribution to the Joseph Brant Memorial Hospital $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total City $ 964 $ 855 $ 1,669 $ 1,743 $ 275 $ 397 $ 300 $ 279 $ 393 $ 344 Total City $ 2,879 $ 4,193 $ 5,035 $ 544 $ 2,792 $ 3,145 $ 2,589 $ 2,765 $ 3,037 $ 3,143 Total Levy $ 116,865 $ 121,059 $ 126,093 $ 126,637 $ 129,429 $ 132,574 $ 135,163 $ 137,928 $ 140,965 $ 144,108 Tax Impacts of Items 1-59 GTA Tax Room to Capital 0.83% 0.80% 0.75% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Net City 1.69% 2.79% 3.41% 0.43% 2.21% 2.43% 1.95% 2.05% 2.20% 2.23% Province of Ontario (Education) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Region of Halton (2016-2020 does not include an increase for Police) 1.40% 2.80% 2.60% 3.00% 2.70% 2.50% 2.50% 2.50% 2.50% 2.40% Overall Tax Bill Impact (%) 1.49% 2.45% 2.61% 1.32% 1.92% 1.94% 1.76% 1.80% 1.87% 1.85% Overall Tax Bill Impact ($/$100,000 CVA) $ 15.13 $25.29 $27.65 $14.35 $21.07 $21.69 $20.08 $20.96 $22.18 $22.35 Page 1 of 6
Ref # Challenges Facing the Current Budget Human Resource Impacts 1 Wage and Salary adjustments including: Comparator Market Adjustments - Annual market adjustments for non-union employees are based on a combination of factors inclusive of market comparators, consumer price index, status of the labour market, salary compression and budget considerations. The amount also includes increases/decreases for overtime, on-call salaries, sick leave and vacation pay. 2 Fringe Benefits - include Standard Life fringe benefit costs, Canada Pension Plan (CPP), Employment Insurance (EI), WCB Experience and employer costs for Employee Health Tax (EHT); however, excludes Ontario Municipal Employees Retirement System (OMERS). $ 2,086 $ 2,138 $ 2,192 $ 2,241 $ 2,292 $ 2,348 $ 2,401 $ 2,455 $ 2,511 $ 466 $ 436 $ 443 $ 454 $ 466 $ 477 $ 490 $ 501 $ 513 3 OMERS - effective with the first, full pay in 2011, contribution rates will increase, on average, by 1% per side (employee/employer) as a percentage of a member s earnings for 2011 to 2013. As this is a temporary increase, the incremental amounts have been removed in 2014. $ 613 $ 557 $ (3,664) Sub-total Human Resource Impacts $ 3,165 $ 3,132 $ (1,030) $ 2,695 $ 2,757 $ 2,825 $ 2,890 $ 2,957 $ 3,024 Inflationary Impacts 4 Inflationary Pressures - Based on a 5-year historical analysis (2007-2009 actuals, 2010 proposed actuals & 2011 proposed budget) excluding energy costs, the yearly average increase has been 8.2%. Per www.statcan.gc.ca, "consumer prices rose 2.5% for the 12 months to December". For 2012 to 2020, an increase of 2% was used. 5 Commodity Pressures - Based on a 5-year historical analysis (2007-2009 actuals, 2010 proposed actuals & 2011 proposed budget), the yearly average increase has been 6.1%. Per www.statcan.gc.ca, "Between December 2009 and December 2010, gasoline prices increased 13.0%, after advancing 7.2% in the 12 months to November. In addition to paying more for gasoline, consumers paid 6.2% more for electricity and 9.2% more for natural gas in December. Overall, energy prices rose 10.5% during the 12 months to December". For 2012 to 2020, an increase of 3% was used. $ 700 $ 705 $ 721 $ 744 $ 747 $ 752 $ 755 $ 762 $ 763 $ 222 $ 228 $ 235 $ 242 $ 250 $ 257 $ 265 $ 273 $ 281 Sub-total Inflationary Impacts $ 922 $ 934 $ 956 $ 986 $ 996 $ 1,009 $ 1,020 $ 1,035 $ 1,043 Corporate Expenditure Impacts 6 Insurance - Based on RFP results, an increase of $400 was required in the Provision to Insurance Reserve for 2011. For 2012 to 2020 an annual increase of $50k is required. $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 7 Provision to Contingency is required to accommodate confidential Legal and Human Resources matters. As in previous years, the uncommitted balance in the Contingency Reserve is low and is insufficient to meet the known short-term requirements. A moderate annual increase of $50k/year is planned. 8 Vehicle Depreciation Reserve Fund (VDRF) - Provision to the VDRF is forecasted to increase modestly (3%), which is to maintain the city's fleet of vehicles and equipment. This is in accordance with the schedules reported in the 2011 Capital Budget. $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 45 $ 47 $ 48 $ 50 $ 51 $ 53 $ 54 $ 56 $ 57 9 Provision to the Strategic Land Reserve Fund (see number 11 below) $ (100) $ (100) $ (100) $ (100) Sub-total Corporate Expenditure Impacts $ 45 $ 47 $ 48 $ 50 $ 151 $ 153 $ 154 $ 156 $ 157 Page 2 of 6
Ref # Challenges Facing the Current Budget Revenue Impacts 10 Reliance on the Hydro Reserve Fund will be phased-out over 5 years $ 50 $ 50 $ 50 $ 50 $ 50 11 Supplementary Taxes - are expected to decline as assessment growth evens out and slows down. Also, with the slowdown in the economy, there may be less construction resulting in new units or non-residential space to assess. In anticipation of a gradual impact of residential greenfield build-out, the simulation assumes an ongoing budget for Supplementary Taxes of $600k after greenfield residential buildout (decline of $100,000 for 2012-2018 and $50,000 for 2019 and then maintain $0.6 million indefinitely). As $400k is tied to an increased Provision to the Strategic Land Reserve Fund for a net zero impact, this provision is also reduced by $100,000 for 2012-2015 (refer to number 9 above). $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 50 Sub-total Revenue Impacts $ 150 $ 150 $ 150 $ 150 $ 150 $ 100 $ 100 $ 50 $ - Local Boards & Committees 12 Eleven citizen committees, the Sound of Music (non profit corporation), and the following local boards are included in this budget grouping: the Art Centre, Burlington Economic Development Corporation (BEDC), Library, Museums, Burlington Performing Arts Centre (BPAC), and Tourism. A year-over-year increase of 2.0% is shown for the boards and committees. $ 219 $ 225 $ 237 $ 253 $ 258 $ 263 $ 268 $ 274 $ 279 Sub-total Local Boards & Committees $ 219 $ 225 $ 237 $ 253 $ 258 $ 263 $ 268 $ 274 $ 279 Capital Budget Impact on Operating 13 Tax Room Transfer - In December 2007, Regional Council removed local infrastructure funding from Halton's levy ($6.1 million). It was further recommended that 50% of the savings from 2009-2013 be transferred to the local municipalities. The 2012 incremental increase has been calculated by using Burlington's share of the total Regional Weighted Assessment for 2011. Note that the existing capital budgets, including capital forecasts, are predicated on these amounts. $ 930 $ 910 14 Dedicated Infrastructure Renewal Levy - Over the last few years, an annual infrastructure levy has been incrementally built into the city's base budget as a step towards addressing the infrastructure funding gap in all asset categories. In 2007 and 2008, a dedicated incremental 1.0% infrastructure renewal levy was approved and in 2009, 0.5% was approved for the four year period 2009 to 2012. $ 584 15 Increased debt charges (principle & interest) $ 600 $ 600 $ 600 $ 600 Sub-total Capital Budget Impact on Operating $ 1,514 $ 1,510 $ 600 $ 600 $ 600 $ - $ - $ - $ - Other Identified Challenges 16 Subdivision Administration Fees - Due to the approaching build-out of greenfield developments in Orchard and Alton, the amount of new roadwork and servicing has been reduced and this has resulted in a decrease in fees collected. $ 100 $ 100 $ 100 $ 50 17 Increase in street light hydro rate and commodity pricing - On May 1, 2010 hydro rates for unmetered street lighting increased by 13%. This will be followed by another increase on May 1, 2011. This respresents the annualized impact for 2012. $ 26 18 Unidentified challenges $ - $ - $ - $ - $ - $ - $ - $ - $ - Sub-total of Other Identified Challenges $ 126 $ 100 $ 100 $ 50 $ - $ - $ - $ - $ - Sub-total of Items 1 thru 18 $ 6,141 $ 6,097 $ 1,062 $ 4,784 $ 4,913 $ 4,350 $ 4,432 $ 4,471 $ 4,504 Page 3 of 6
Ref # Potential Solutions incl. cost containment and new/increased revenues 19 Use Assessment Growth to help fund 2011 thru 2020 budget (1.2% in 2012, 1.1% in 2013, 1.0% in 2014-2015, 0.9% in 2016, 0.8% in 2017, 0.7% in 2018, 0.6% in 2019 and 0.5% in 2020) - In 2011 a significant portion of assessment growth was used to reduce taxes. The same strategy should be considered for 2012 to 2020. 20 Investment Income - Increases in investment income are anticipated to slowly increase as a result of the economic recovery. $ (1,402) $ (1,332) $ (1,261) $ (1,266) $ (1,165) $ (1,061) $ (946) $ (828) $ (705) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) $ (100) 21 Unidentified cost containment solutions $ (1,300) $ (1,300) $ (900) $ (900) $ (900) $ (900) $ (900) $ (900) $ (900) Sub-total Identified Cost Containment Savings $ (2,802) $ (2,732) $ (2,261) $ (2,266) $ (2,165) $ (2,061) $ (1,946) $ (1,828) $ (1,705) Sub-total of Items 1 thru 21 $ 3,339 $ 3,365 $ (1,199) $ 2,517 $ 2,748 $ 2,289 $ 2,486 $ 2,644 $ 2,799 Page 4 of 6
Ref # Service Enhancements / New Initiatives incl. Impact on Operating as a result of Capital Projects Impact on Operating as a result of Capital Projects 22 Mountainside Facility Renewal/Enhancements (Arena Facility & Pool Change Rooms) (FB-AA- 1133) $ 18 23 Burlington GO Station Drivers Lunchroom (FB-BD-1376) $ 3 24 Burlington Performaing Arts Centre (FB-BD-528) $ 100 25 Alton Community Centre Construction (FB-CC-7) $ 470 $ 612 26 Fire Training Tower Revitalization (FB-FI-511 $ 1 27 Customer Service/Relations Management Tool (IT-CA-1020) $ 110 28 Asset Management (IT-CA-1164) $ 30 29 E-Government Strategy Implementation (IT-CA-1191) $ 23 $ 18 30 Corporate Reporting Phase III (IT-CA-1240) $ 120 31 Database Licensing (IT-CA-1322) $ 13 32 SAP Business Objects Enterprise Licensing (IT-CA-1331) $ 6 33 Financial System Enhancements (IT-CA-1332) $ 70 34 GSI Enhancements (IT-CA1350) $ 25 35 Corporate Applications - Future (IT-CA-47) $ 12 $ 55 $ 60 $ 72 $ 60 $ 60 $ 55 36 Electronic Records Management - Workflow Implementation (IT-CA-913) $ 15 37 Class Facility Query / Online Booking (IT-DA-1202) $ 5 38 POS Rollout - Parks & Recreation (IT-DA-1204) $ 10 39 AVANTIS Fire Inventory Barcoding (IT-DA-1339) $ 8 40 Department Applications - Future (IT-DA-448) $ 20 $ 25 $ 35 $ 26 $ 25 $ 20 41 Large Format Scanner / Printer (IT-TI-1229) $ 5 42 Data Centre UPS / Generator (IT-TI-1257) $ 5 43 Communication Technology Master Plan (IT-TI-1338) $ 8 44 Corporate Telephone System Upgrade (IT-TI-921) $ 5 $ 20 45 North East Library Facility (LB-LI-79) $ 395 $ 540 46 New City Park (PO-PD-115) $ 179 $ 15 $ 14 $ 76 47 Norton Community Park (PO-PK-1319) $ 22 Page 5 of 6
Ref # Service Enhancements / New Initiatives incl. Impact on Operating as a result of Capital Projects 48 Doug Wright Park (PO-PD-1320) $ 25 49 New Traffic Signal (RD-TS-772) $ 4 $ 4 50 Burlington Fire Mobile and Portable Radios (VE-EN-1219) $ 50 51 Mini-Hybrid System Retrofit Program (VE-EN-1370) $ (24) $ (24) $ (24) $ (33) 52 CAD/AVL/ASA/ATIS - Tranist Fleet (VE-VN-368) $ 89 $ 112 53 Expansion of Conventional Transit Fleet (VE-VN-369) $ 358 $ 378 $ 193 $ 193 $ 193 $ 193 $ 193 $ 193 $ 193 54 Expansion Handi-van (VE-VN-371) $ 94 $ 104 $ 115 Additional Service Enhancements & Other Initiatives 55 Growth in roadways, sidewalks and roadside assets (including winter control) $ 40 $ 40 $ 40 $ 40 56 Three Splash Pads (one in Orchard Community Park and two where the locations are still to be determined) 57 Sponsorship of the Canadian National Road Cycling Championships (PR-25-10) (one-time expenditure) 58 PRESTO Fare System offset by funding from the Dedicated Provincial Gas Tax Reserve Fund for a net zero impact $ 35 $ 17 $ 30 $ - $ - $ - $ - $ - $ - $ - $ - $ - 59 Transfer from the Tax Rate Stabilization Reserve Fund $ (30) Sub-total Identified Service Enhancements / New Initiatives $ 855 $ 1,669 $ 1,743 $ 275 $ 397 $ 300 $ 279 $ 393 $ 344 Note, excludes additional funding for Strategic Land and Joseph Brant Memorial Hospital Total of Items 1 thru 59 $ 4,193 $ 5,035 $ 544 $ 2,792 $ 3,145 $ 2,589 $ 2,765 $ 3,037 $ 3,143 Page 6 of 6