corporate budget overview - peel region · corporate budget overview 2018 udgetb $2.4 billion...

1

2018 Budget

Living. Thriving. Leading.

CORPORATE BUDGET OVERVIEW

Presented to Council November 2, 2017

2

Overview of 2018 Budget

Operating Budget

• Tax Supported Services

• Utility Rate Supported Services

Capital Plan

Summary of 2018 Budget

2019 – 2021 Outlook

2

Agenda2018 Budget


3

3

PROPERTY TAX INCREASE

1.0% Council’s Target

+$47Residential

+$85Small Business Owner

UTILITY RATE INCREASE

6.5%

+ $41Residential

+ $99Small Business Owner

Bottom Line ImpactCORPORATE BUDGET OVERVIEW

2018 Budget

4

4

Reflects Peel’sFinancial Principles

Respect forthe taxpayer

Ensure CapitalPlan is sustainable

Borrow for long term

assets

Value for money

Maintain flexibility to mitigate volatility

in rates

Users pay where appropriate

Prudentinvesting

Work with localmunicipalities

Maintainassets


2018 Budget

5

$23 million

$847 million

$666 million

$1.35 billion

$34 million

$175 million

Living:People’s lives are People’s lives are People’s lives are People’s lives are improved in their improved in their improved in their improved in their time of need.time of need.time of need.time of need.

Thriving:Communities are Communities are Communities are Communities are integrated, safe and integrated, safe and integrated, safe and integrated, safe and complete.complete.complete.complete.

Leading:Government is Government is Government is Government is futurefuturefuturefuture----orientedorientedorientedorientedand accountable.and accountable.and accountable.and accountable.


2018 Budget

$2.4 billionOperating Budget

$0.7 billionCapital Budget

$3.1billion invested billion invested billion invested billion invested

in services that

advance and

support

Council’s current

term priorities

and longer term

outcomes

5

6

Responding to 127,181emergency calls

6

$847 millionOPERATING

$23 millionCAPITAL

Providing 11,380+ housing subsidies

Providing 689,750 accessible transportation passenger trips

Providing 14,000+ people with shelter beds and transitional housing

800+ residents receiving quality long term care

Improving People’s Lives


2018 Budget


FOCUS AREA SERVICES:

• Accessible

Transportation

• Paramedics

• Adult Day

• Long Term Care

• Community Investment

• Income Support

• Employment Support

• Housing Support

• Homelessness Support

• Child Care

Providing 15,400+ fee subsidies making it possible for lower-income families to benefit from licensed child care

7

Treating 593 million litres

of water each day to

provide 335,000+ customers

safe drinking water

7

90% of students receive full

immunizations, offering them

protection from getting or

spreading infectious diseases

500,000 tonnes of wastemanaged for 343,600 curbside and

101,800 multi-residential

households

Peel Regional Police responding to

230,691 citizen initiated events

and Ontario Provincial Police to

28,700+ calls

Maintaining 1,666 lane

kilometres of road to help keep

residents safe and traffic moving

Integrated, Safe and Complete Communities


2018 Budget


$1.35 billionOPERATING

$666 millionCAPITAL 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

Welcoming 30,000 visitors with

local arts and exhibitions at

PAMA

7

8

8

75% of residents reported the

Region provides value for tax

dollars

Our Contact Centre provided

live support to

1 million contacts

A Future-Oriented and Accountable Government


2018 Budget


$175 millionOPERATING

$34 millionCAPITAL

FOCUS AREA SERVICES

• Corporate Services

• Finance

• Service Innovation and

Information Technology

72% Employee engagementEarned a Triple-A credit rating –

the highest possible rating

Maintaining $26B of

Regional assets, such as

roads, bridges and buildings

8 out of 10 client

satisfaction rating

9

Continuing to find ways to save money

9

Doing BetterCORPORATE BUDGET OVERVIEW

2018 Budget

• 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

10

10

Managing RisksCORPORATE BUDGET OVERVIEW

2018 Budget

• Legislation and Regulations

• External Funding Levels

• Climate/Weather

• Labour Costs

• Economic and Market Volatility

10

11

*Property Tax increase assumes 41% is

Region’s Portion

Utility Rate Supported

Operations 1.5%

Infrastructure Levy 5.0%

Average Utility Rate Increase

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)

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*

Operating Budget Overview


2018 Budget

6.5%6.5%

1.0%1.0%

11

12

12

What the Average Property Tax Bill Funds


2018 Budget

PEEL REGIONPEEL REGIONPEEL REGIONPEEL REGION 41%

LOCAL MUNICIPALITIESLOCAL MUNICIPALITIESLOCAL MUNICIPALITIESLOCAL MUNICIPALITIES 40%

EDUCATIONEDUCATIONEDUCATIONEDUCATION 19%

12

13

*External Agencies Operating Budget total

$523M

MPAC: Municipal Property Assessment

Corporation 13

TOTAL EXPENDITURES:

Tax & Utility

$2.4billion

Regional Services

$1,850M, 78%

*Police Services

$459M, 19%

*MPAC

$19M, <1%

*Conservation Authorities

$45M, 2%

Proposed Operating Budget


2018 Budget

14

14

Less than half

funded by

Property Tax

Grants and Subsidies

$624M, 26%

Utility

$389M, 16%

Other

$321M, 14%

Property Tax

$1,039M, 44%

Users PayWhere Appropriate


2018 Budget

15

15

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%

Labour Costs27% of Budget


2018 Budget

Total Regionally Controlled Services Budget $1.85B

Total Labour Costs at 27% $499M

16

Note: Regionally Controlled Services only

16

Labour Costs

$499M, 27%

Grants, Subsidies & Transfer Payments

$511M, 38%

Other Services Contracted Out

$196M, 14%

Capital Reserve Contribution

Tax & Utility $334M, 25%

Program Services

$310M, 23%

Non-Labour Costs73% of Budget


2018 Budget

Total

$1.8B

Non-Labour

Costs

17

17

Note: Includes making 8.5 positions permanent to maintain service levels. Numbers may not add due to rounding.

People DeliveringServices to People


2018 Budget

Staffing Full Time Equivalents (FTEs)

Regionally Controlled2017 Revised 2018 Proposed

(FTEs) Additions (FTEs)

Tax Supported:

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 Ontario Early Years Child

and Family Centers (OEYCFC)6.0 6.0

TOTAL Regionally Controlled 4,444 58.25 4,502

18

18


2018 Budget

TAX SUPPORTED

OPERATING

19

* 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

Respect for theTax Payer


2018 Budget

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%

20

20

Tax Supported Budget Increases


2018 Budget

*External Agencies include:*External Agencies include:*External Agencies include:*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.

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

21

+6,000 paramedic

response calls

21

$9.8 millionOPERATING

+30.75 FTEs

Investing $4.5 million for Twin

Pines transition plan, leading to

future development

+39,000 more accessible

transportation rides+10 Beds at Brampton Youth

Shelter

Improved care for Peel Manor residents

Improving People’s Lives


2018 Budget


Note: Regionally

Controlled Tax Services

22

22

Focusing on residents’ harm

reduction: expanded needle

exchange and Naloxone Opioid

Overdose Kits

Adding 4,000 new

households to waste collection

service

Integrated, Safe and Complete Communities


2018 Budget


$2.6 millionOPERATING

+11 FTEs

Oversight of Ontario Early

Years Child and Family

Centers

Seniors Dental enhancements

Maintaining PAMA’s

90+ exhibitions

Note: Regionally


23

Managing benefit costs with savings of more than

$3 million to date

23

Appointment of an Integrity

Commissioner and Lobby

Registrar

Increasing first point of

contact resolution for

Peel residents

A Future Oriented and Accountable Government


2018 Budget


+$0.2 millionOPERATING

+4 FTEs

Note: Regionally


24

24

Respect for theTax Payer


2018 Budget

*External Agencies include:*External Agencies include:*External Agencies include:*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.

Request $ Millions

2017 Services to 2018

Population$2.0

Service Demands 12.6

Capital Infrastructure (1%) 10.0

Regionally Controlled 24.6

External Agencies 20.5

TOTAL Requests $45.1

Gap of

$26million

funded by a

1.0%Property Tax

increase

Funding Sources $ Millions

Provincial Upload:

• Ontario Works Benefit

• Employment

• Court Security

$4.8

$0.4

$1.4

Sub-total 6.6

Assessment Growth 12.5

TOTAL Revenues $19.1

25

25

Where Your 2018 Tax Dollars Will Be Spent


2018 Budget

Based on $100,000 of Residential Assessment

$- $40 $80 $120 $160 $200

Adult Day

Employment Support

Land Use Planning

Heritage Arts and Culture

Community Investment

Child Care

Infectious Disease Prevention

Chronic Disease

Homelessness Support

Early Growth and Development

Enterprise Programs & Services

Accessible Transportation

Income Support

Long Term Care

Paramedics

Capital Investment Plan

Roads and Traffic

Waste

Housing Support

MPAC

Conservation Authorities

Police

Per $100,000 assessment value:

Property Tax increase: $9.75

2018 Property Tax: $390.32

A house with a value of

$484,000 will see an increase

of $47; 2018 Tax $1,889

External Agencies Regionally Controlled Services

Paramedic Services

Chronic Disease Prevention

Roads and Transportation

Waste Management

Police


MPAC

Housing Support

Waste Management

Roads and Transportation

Capital Investment Plan

Paramedic Services

Long Term Care

Income Support

Accessible Transportation

Enterprise Programs and Services

Early Growth and Development

Homelessness Support

Chronic Disease Prevention

Infectious Disease Prevention

Child Care

Community Investment

Heritage, Arts and Culture

Land Use Planning

Employment Support

Adult Day

26

26


2018 Budget

UTILITY RATE

SUPPORTED

OPERATING

27

27

Utility Rate Supported Budget Increases


2018 Budget

Average Utility Rate Increase

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

6.5%6.5%

28

Utility Rate Payer Impact

28

Users Pay Where Appropriate


2018 Budget

Residential Small Business

Annual

Consumption290m3 695m3

Annual Increase $41 $99

Annual Water Bill $659 $1,683

29

*Based on 2017

Residential Rates

Note: Note: Note: Note: York Region - average of three municipalities: Markham, Vaughan

& Richmond Hill 29

Utility Rates are Competitive


2018 Budget

*

**

$1,023

$1,091$1,120

$1,051

$659

0

200

400

600

800

1000

1200

$618

*

$41$41

30

2018BudgetCAPITAL BUDGET


2018 Budget

CAPITAL BUDGET

31

3131

Tax & Utility – $7.2 Billion

2018 Budget

CAPITAL BUDGET Ten Year Capital Plan

Capital Budget Funding:� 58% Reserves � 39% Development Charges �3% External

Peel Regional Police

$398M, 6%


$22M, < 1%

Regionally Controlled Tax

$2,776M, 39%


$3,971M, 55%

32

3232

2018 Budget

CAPITAL BUDGET Ten Year Capital Plan Regionally Controlled - $6.7B

Living:People’s lives are improvedPeople’s lives are improvedPeople’s lives are improvedPeople’s lives are improved

in their time of need.in their time of need.in their time of need.in their time of need.

Thriving:Communities are integrated, safe Communities are integrated, safe Communities are integrated, safe Communities are integrated, safe

and complete.and complete.and complete.and complete.

Leading:Government is futureGovernment is futureGovernment is futureGovernment is future----orientedorientedorientedoriented

and accountable.and accountable.and accountable.and accountable.

$5,839.6M$683.5M $224.0M

33

33

2018 Budget

CAPITAL BUDGETFinancing the

Capital Plan

Capital Reserves

$3,759M, 56%

External

$239M, 4%

Development Charges

$2,749M, 40%

Note: Regionally Controlled Services

34

3434

2018 Budget

CAPITAL BUDGET Capital PlanInvestments - $6.7B

State of Good Repair

$2.8B

DC Funded Growth

$2.7B

Non DC Funded Growth

& Council Priorities

$1.2B

42%

40%

18%


35

Unfunded gap1% × 4 years

3535

2018 Budget

CAPITAL BUDGET Ensure the Capital Planis Sustainable

1% ↑ in 2018Tax Supported Tax Supported Tax Supported Tax Supported

2018 2018 2018 2018 –––– 2027 2027 2027 2027

NonNonNonNon––––DC Capital PlanDC Capital PlanDC Capital PlanDC Capital Plan

Portion to be Portion to be Portion to be Portion to be

Funded Funded Funded Funded

from Taxfrom Taxfrom Taxfrom Tax

$2.06B

Total Available Total Available Total Available Total Available

FundingFundingFundingFunding

(including interest)(including interest)(including interest)(including interest)

$1.62B

Tax Supported

1% Infrastructure Levy

10-Year Outlook

Total Asset Value: $3.4B

Seniors Health & Wellness Village


36

5 % ↑ in 2018

Total Available Total Available Total Available Total Available

FundingFundingFundingFunding

(including (including (including (including

interest)interest)interest)interest)

$3.61B

Utility SupportedUtility SupportedUtility SupportedUtility Supported

2018 2018 2018 2018 –––– 2037 2037 2037 2037

NonNonNonNon––––DC Capital Plan DC Capital Plan DC Capital Plan DC Capital Plan

Portion to be Funded Portion to be Funded Portion to be Funded Portion to be Funded

from Utility Ratefrom Utility Ratefrom Utility Ratefrom Utility Rate

$5.47B

Unfunded gap - requires

5% × 4 years

3636

2018 Budget

CAPITAL BUDGET Ensure the Capital Plan is Sustainable


5% Infrastructure Rate Increase

20-Year Outlook

Total Asset Value: $22.8B

37

3737

2018 Budget

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

38

3838

2018 Budget

CAPITAL BUDGET Borrow Only for Substantial Assets

0%

5%

10%

15%

20%

25%

30%

2017 2018 2019 2020 2021 2022 2023

DC Debt Forecast Other Debt Forecast Savings From 2012 DC Background Study Forecast

Provincial Maximum Annual Repayment Limit

Impact of Growth Management StrategyImpact of Growth Management Strategy

39

3939

Tax & Utility Rate Supported – $723 Million

2018 Budget

CAPITAL BUDGET Capital Budget

Capital Budget Funding:

� 47% Reserves � 33% Development Charges �20% External

Peel Regional Police

$54M, 7%

Regionally Controlled Tax Supported

$206M, 29%


$463M, 64%

40

40

• 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

• Ambulance Fleet and Support

Vehicles

• TransHelp - Mavis Yard

• Maintain Long Term Care

Homes

• Maintain Affordable Housing

Capital BudgetCAPITAL BUDGET

2018 Budget

Living:People’s lives are improvedPeople’s lives are improvedPeople’s lives are improvedPeople’s lives are improved


Thriving:Communities are integrated, safe Communities are integrated, safe Communities are integrated, safe Communities are integrated, safe

and complete.and complete.and complete.and complete.

$23 million $612 million $34 million


Leading:Government is futureGovernment is futureGovernment is futureGovernment is future----orientedorientedorientedoriented


41

41


2018 Budget

BUDGET SUMMARY

42

42

Respect for the Taxpayer


2018 Budget

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%


Sub-total 2.1% 2.1%

Reinvestment of Ontario Works Provincial

Upload in Affordable Housing (2016-601)* 0.5% 0.5%

Net Tax Levy2.6%

Utility Supported Programs

Operations 2.0% 1.5%

Capital Infrastructure 3.5% 5.0%

Average Utility Rate Impact 5.5% 6.5%

2.6%2.6%

6.5%6.5%

43

43

Average Residential Property Tax Impact


2018 Budget

1.0% * 0.0%

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%)

3.0%

Local Municipality

Net Levy Increase

2.2%

3.0%

3.4%

Overall Property

Tax Increase

Education

4.0%

5.0%

6.0%

2.6%

44

44

Supporting Those with Low Income


2018 Budget

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

45

45


2018 Budget

2019 – 2021

OUTLOOK

46

Utility Rate Increase **

46

2019 to 2021 Outlook


2018 Budget

*Includes 1% for Tax Supported Capital plan and assumes 1.1% for Assessment Growth

** Includes 5% Reserve Contribution for Utility Rate Supported Capital Plan

2019 2020 2021

6.0%6.0%7.1%7.1% 6.7%6.7%

2.9%2.9%3.6%3.6% 3.0%3.0%Net Tax Levy Increase *

47

* Excludes one time costs related to Emerald Ash Borer47

2019 Budget Target


2018 Budget

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%


Sub-total 3.3% 2.1

Council Directed – e.g. Waste Diversion,

Sidewalks & Multi-Use Trails, Seniors Health

& Wellness Centre

0.3% 0.3%

Net Tax Levy 3.6% 2.4%

48

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

Next StepsCORPORATE BUDGET OVERVIEW

2018 Budget

49

49

Living

Communities are integrated, Communities are integrated, Communities are integrated, Communities are integrated,

safe and complete.safe and complete.safe and complete.safe and complete.

Government is futureGovernment is futureGovernment is futureGovernment is future----orientedorientedorientedoriented



2018 Budget

Investing in better outcomes Investing in better outcomes Investing in better outcomes Investing in better outcomes for residentsfor residentsfor residentsfor residents

Thriving Leading

People’s lives are improvedPeople’s lives are improvedPeople’s lives are improvedPeople’s lives are improved


corporate budget overview - peel region · corporate budget overview 2018 udgetb $2.4 billion...

Documents