Post on 23-Sep-2020
CORPORATE BUDGET OVERVIEW Presented to Council November 24, 2016
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Title Agenda
• Overview of 2017 Budget • Operating Budget Tax Supported Programs Utility Rate Supported Programs
• Capital Plan • Summary of 2017 Budget • 2018 – 2020 Outlook
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2017 Bottom Line Impact
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Budget Reflects Peel’s Financial Principles
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$1.2 billion - Operating $666 million - Capital
Investing in a Community for Life
Living Affordable Housing
Early Years & Child Care Paramedic Services
Seniors’ Services Social Assistance &
Employment Public Health
Thriving Accessible Transportation
Waste Management Roads
Police Services Water & Wastewater
Conservation Authorities
Leading Information Technology
Information Management Financial Management
Asset Management Assurance & Risk
Capital & Property Workforce
2017 Budget – $3.0 Billion (Operating $2.2B & Capital $0.8B)
$878 million – Operating $99 million – Capital
$181 million – Operating $21 million – Capital
$1.2 billion – Operating $666 million – Capital
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Improving People’s Lives
Living • Assisting over 19,000 households with affordable housing or shelter space
• Improving patient outcomes through paramedic response
• Providing quality of life to 703 long term care residents
• Supporting families with low income through social assistance and child care subsidies
• Improving population health through immunization, children’s dental, prenatal supports and food safety
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Thriving
Integrated, Safe and Complete Communities
• Collecting and disposing of waste from over 425,000 households in an environmentally responsible manner
• Providing safe drinking water and treat waste water for 320,000 households
• Supporting the movement of people and goods via the Regional road network
• Connecting residents through 605,000 Accessible Transportation trips
• Keeping the community safe through effective and visible policing
• Protecting over 34,000 hectares of land through three conservation authorities
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Leading
A Future Oriented and Accountable Government
• Ensuring that the Region is financially sustainable to keep taxes affordable
• Leveraging technology to improve resident and client access to services (24/7)
• Creating effective partnerships • Being a model and progressive employer
and listening to the community
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Tax Supported
Operations 1.4%
Provincial Upload (0.7%) • Ontario Works Benefit $4.5 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 2.2%
Property Tax Increase*
*Property Tax increase assumes 41% is Region’s Portion
0.9%
Operating Budget Overview
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Utility Rate Supported
Operations 1.5%
Infrastructure Levy 3.5%
Average Utility Rate Increase 5.0%
Peel Region 41%
Local Municipalities
39%
Education 20%
What the Average Property Tax Bill Funds
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Regional Services, $1,746M, 78%
*Conservation Authorities, $41M, 2%
*MPAC, $18M, 1%
*Police, $440M, 19%
*External Agencies Operating Budget total $500M MPAC: Municipal Property Assessment Corporation
Tax & Utility Rate Supported – $2.2 Billion
Proposed Operating Budget
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44% of Budget Funded from Property Taxes
Users Pay Where Appropriate
Property Tax, $998M, 44%
Grants and Subsidies,
$556M, 25%
Utility, $370M, 17%
Other, $321M, 14%
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Total Regionally Controlled Programs Budget $1.75B
Total Labour Costs @ 27% $480M
Program Services & Capital Reserve Contributions,
$1,266M, 73%
Labour Costs Tax Based,
$267M, 15%
Labour Costs Subsidy Based,
$149M, 8%
Labour Costs Rate Based,
$64M, 4%
Labour Costs – 27% of Budget
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Program Services &
Capital Reserve
Contributions, $1,266M ,
73%
Labour Costs, $480M,
27%
Non – Labour Costs – 73% of Budget
Grants and Subsidies Transfer
payments, $468M, 37%
Other Services
Contracted out, $132M,
10%
Capital Reserve
Contributions - Tax & Rate, $300M, 24%
Program Services,
$366M, 29%
Note: Regionally Controlled Programs only 14
Regionally Controlled Programs 2016 Revised 2017 Proposed
FTEs Additions FTEs
Tax Supported: Public Works 439 8 447 Health Services 1,907 40 1,947 Human Services 689 4 693 Enterprise Programs and Services (EPS) 742 14 756
TOTAL: 3,776 66 3,842
Utility Rate Supported 556 7 563
TOTAL Region (Tax + Utility) 4,332 73 4,405
Regionally Controlled Programs
People delivering services to People Addressing a growing and aging population
15 Note: Numbers may not add due to rounding.
Title
Tax Supported Programs
2017 Operating Budget
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Council’s Target
Proposed Net
Budget Net Expenditure 3.3% 3.4% Regionally Controlled 3.3% 3.4% Peel Regional Police 3.3% 3.2% OPP 2.1% 2.8% Credit Valley Conservation 3.3%* 3.7%* Halton Conservation 3.3% 4.1%
Toronto Region Conservation (1.9%)* (1.9%)* Assessment Growth (1.20%) (1.13%) Net Levy 2.1% 2.2% * Exclude One-time Costs such as Emerald Ash Borer costs
Respect for the Tax Payer
Net Tax Levy Increase in line with Inflation
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Net levy after assessment growth
Tax Supported Programs Net Increase/ (Decrease)
Regionally Controlled Programs 0.6%
External Agencies 1.0%
Subtotal 1.6%
In–Year Council Decisions* 0.6%
TOTAL Net Tax Levy 2.2%
Tax Supported – Net Levy Pressures
* Includes reinvestment of the tax room made available by Provincial upload of the costs of Ontario Works to support affordable housing, a new youth shelter in Brampton and subsidy for low income “MiWay” users.
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$ Millions
2016 Services to 2017 Population $1.8
Service Needs 11.9
Capital Infrastructure (1%) 9.7
Regionally Controlled
$23.4
External Agencies*
15.6
TOTAL INCREASE $39.0
*External Agencies include: • Peel Regional Police • Ontario Provincial Police – Caledon • Conservation Authorities • Municipal Property Assessment Corporation
Tax Supported – Budget Increases
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Living I have:
Affordable housing options Access to employment of my
choice Access to culturally appropriate
services Access to services that meet my
needs at all stages of life
$7.8 million
Thriving We live in a community that: Is environmentally friendly
Where growth is well managed Where built environment promotes healthy living
$2.9 million
Leading I trust that:
Region of Peel is a model & progressive employer
Coordination & partnerships occur
A systematic approach to innovation is in place
Peel is a well managed government
$1.2 million
Operating Budget (Tax) $11.9 M to Address Service Needs
Community for Life Investing In Peel
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Title Regionally Controlled Programs
2017 Budget Service Needs – $11.9M
Request (In $Millions)
Regionally Controlled Programs
Public Works (Tax)
Human Services
Health Services EPS Total
Living $6.1 $1.7 $0.1 $7.8
Thriving $2.9 - - - 2.9
Leading - 0.5 - 0.7 1.2
TOTAL Requests $2.9 $6.5 $1.7 $0.8 $11.9
Note: Numbers may not add due to rounding.
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External Agencies
2017 Budget Requests – $15.6M
Request (In $Millions)
External Agencies
PRP OPP CA’s MPAC Total External
2016 Services to 2017 Population $9.2 $0.27 $1.7 $0.1 $11.4
Living - - - - -
Thriving 4.2 0.03 - - 4.2
Leading - - - - -
TOTAL Requests $13.4 $0.3 $1.7 $0.1 $15.6
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Request
2016 Services to 2017 Population
$1.8
Service Needs 11.9
Capital Infrastructure (1%) 9.7
Regionally Controlled $23.4 External Agencies 15.6 TOTAL Requests $39.0
(In $Millions)
Gap of $21.8 M funded by a 0.9% Property Tax Increase
Respect for the Tax Payer
0.9% Property Tax Increase
Funding Sources
Ontario Works Upload $4.5
Employment Services Upload 0.4
Court Security (Police) 1.4
Sub-total $6.3 Assessment Growth 10.9 TOTAL Revenues $17.2
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$ Increase on $100,000 of Residential Assessment
Where Your 2017 Tax Dollars Will Be Spent
Based on $100,000 of Residential Assessment
24 A house with a value of $474,000 will see an increase of $41; 2017 Tax $1,892
Seniors’ Services
Early Years & Child Care
Title
Utility Rate Supported Programs
Operating Budget
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Increases (In $Millions) 2017 Net Cost
Inflation and Service Level Growth $6.6
Capital Infrastructure 11.0
TOTAL INCREASE $17.6
Utility Rate Supported Budget Increases
Total Pressures 5.0%
Average Utility Rate Increase 5.0%
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Average Utility Rate Impact Residential Small Business
Annual Consumption 290m3 695m3
Annual Increase $33 $85
Revised Annual Water Bill $622 $1,593
Users Pay Where Appropriate
Utility Rate Payer Impact
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Respect for the Utility Rate Payer
$973
$1,054 $1,020 $1,001
$1,059
$622
$1,079
$0
$200
$400
$600
$800
$1,000
$1,200
Halton* Durham* Markham* Toronto* Vaughan* Peel** Richmond Hill*
Peel’s Utility Rates are Competitive
$33
$589
*Based on 2016 Rates **Based on 2017 Proposed Rates 28
Title
Capital Plan
2017 Capital Budget
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Tax & Utility – $6.4 Billion
Ten Year Capital Plan
Regionally Controlled Utility Rate Supported,
$3,290M, 52%
Police Services, $280M, 4%
Regionally Controlled Tax
Supported, $2,791M, 44%
Capital Budget Funding: 59% Reserves 38% Development Charges 2% External 1% Debt
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Regionally Controlled 10 Year Capital Plan
10 Year Capital Plan ─ $6.1 Billion
Public Works- Tax Supported,
$1,867M , 31%
Public Works- Utility (Water,
Wastewater and Operation Support),
$3,290M , 54%
Human Services, $442M , 7%
Health Services, $262M , 4%
Enterprise Programs &
Services, $194M , 3%
Conservation Authorities Managed, $26M , 1%
Capital Budget Funding: 58% Reserves 39% Development Charges 1% Debt 2% External
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$6.1 Billion
State of Good Repair
$2.3B / 38%
DC Funded Growth $2.4B / 39%
Non DC Funded Growth & Council
Priorities $1.4B / 23%
Regionally Controlled Programs (Tax and Utility)
Capital Plan Classification
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Maintain Assets
SOGR 10 Year Capital Plan – $2.3B / 38%
Fern Forest Paramedic Station
Hanlan Feedermain
Peel Centre Drive
84% Very good or good
Poor, 5%
Fair, 11%
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1% ↑ in 2017 3.5% ↑ in 2017
Total Available Funding
(including interest)
$3.43B
Utility Supported 2017 – 2036
Non–DC Capital Plan
Portion to be Funded
from Utility Rate
$5.16B
Unfunded gap - requires 3.5% × 6
years
Tax Supported 2017 – 2026
Non–DC Capital Plan
Portion to be Funded from Tax
$1,819M
Total Available Funding
(including interest)
$1,631M
Tax Supported 1% Infrastructure Levy
Utility Rate Supported 3.5% Infrastructure Rate Increase
10-Year Outlook 20-Year Outlook
Ensure the Capital Plan is Sustainable
Unfunded gap 1% in 2018
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Title Non–DC Funded Growth & Council Priorities
Living
Health Services – $85 million
Human Services – $264 million
Thriving Public Works (Tax Supported)
– $640 million
Public Works (Utility) – $309 million
Leading Enterprise Program and Services – $83 million
10 Year Plan – $1.4B / 23%
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Title Growth Pays for Growth
Living
Health Services – $24 million
Human Services – $37 million
Thriving Public Works (Tax Supported)
– $814 million
Public Works (Utility) – $1,473 million
Leading Enterprise Programs and
Services – $3 million
10 Year DC Capital Plan – $2.4B / 39%
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Borrow Only for Substantial Assets at Affordable Rates
0%
5%
10%
15%
20%
25%
30%
2016 2017 2018 2019 2020 2021 2022
DC Debt Forecast Other Debt Forecast
Provincial Maximum Annual Repayment Limit
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Regionally Controlled Utility Rate Supported,
$499M, 64%
Police Services, $27M, 3%
Regionally Controlled Tax
Supported, $260M, 33%
2017
Capital Budget Funding: 52% Reserves 41% Development Charges 1% Debt 6% External
2017 Capital Budget
Tax & Utility Rate Supported $0.8 Billion
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Title 2017 Capital Budget Regionally Controlled
Living
People’s lives are improved in their time of need
$99 million
Thriving Communities are integrated,
safe and complete
$639 million
Leading Government is future-
oriented and accountable
$21 million
Community for Life Investing In Peel
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Summary of 2017 Budget
2017 Budget
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Tax Supported Programs 2017 Council’s Target
2017 Proposed Budget
Net Expenditure Increase: 3.3% 3.4% Regionally Controlled Programs 3.3% 3.4% External Agencies 3.3% 3.3% Assessment Growth (1.2%) (1.13%) Net Tax Levy 2.1% 2.2%
Utility Supported Programs Operations 0.4% 1.5% Capital Infrastructure 3.5% 3.5% Average Utility Rate Impact 3.9% 5.0%
Respect for the Taxpayer
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% 2012 2013 2014 2015 2016
Region of Peel 0.56 0.55 0.64 0.80 0.8
Average of three Area Municipalities 1.96 2.29 1.72 1.80 2.1
Education - - - - -
Average Property Tax Impact 2.52 2.84 2.36 2.60 2.9
Note: assumes weighted average with Peel at 42%, Area Municipalities at 37% and Education at 21%
Work with Local Municipalities
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Scenario 1 Scenario 2 Scenario 3 Scenario 4
Region (at 2.2% net levy increase)
0.9 %
(2.2%x41%)
0.9 %
(2.2%x41%)
0.9 % (2.2%x41%)
0.9 %
(2.2%x41%)
Local Municipality (at 3.0%,4.0%,5.0% or 6.0% net levy increase)
1.2% ( x39%)
1.6% ( x39%)
2.0% ( x39%)
2.4% ( x39%)
Education (at 0%) 0.0% (0%x 20%)
0.0% (0%x20%)
0.0% (0%x20%)
0.0% (0%x20%)
TOTAL Property Tax Impact 2.1% 2.5% 2.9% 3.3%
3.0%
Example For Illustrative Purposes Only
Average Residential Property Tax Impact
6.0% 5.0% 4.0%
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Additional Budget Request
2017 Proposed Net Tax Levy Increase 2.2%
Add: Additional 50 students in Summer Job Challenge Program (Total expenditures $460K, net $230K)
0.024%
Subtotal - Net Tax Levy Increase 2.3%
Property Tax Impact 0.9%
Tax Impact of Increase in Summer Job Challenge Program
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2018 ─ 2020 Outlook
Respect for the Taxpayer
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Tax Supported Programs 2018 2019 2020
Regionally Controlled Programs 2.2% 2.2% 2.0% External Agencies* 1.7% 1.6% 1.7% Net Tax Levy Increase 3.9% 3.8% 3.7% Assessment Growth 1.1% 1.1% 1.1% Net Tax Levy Impact 2.8% 2.7% 2.6%
Utility Supported Programs 2018 2019 2020 Operations 2.0% 2.0% 2.0% Capital Infrastructure 3.5% 3.5% 3.5% Average Utility Rate Impact 5.5% 5.5% 5.5%
2018 to 2020 Outlook
* Conservation Authorities - excludes one time costs related to Emerald Ash Borer
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* Excludes one time costs related to Emerald Ash Borer
2018 Budget Target – 2.6%
Tax Supported Programs 2018 Forecast
Proposed 2018 Target *
Net Expenditure 3.4% 3.2% Regionally Controlled Programs 3.2% 3.2%
Peel Regional Police 3.4% 3.2%
OPP 2.7% 2.7%
Credit Valley Conservation* 5.5% 3.2%
Halton Conservation 7.1% 3.2%
Toronto Region Conservation* 11.9% 3.2%
Assessment Growth (1.1%) (1.1%)
Net Levy 2.3% 2.1% Reinvestment of the tax room available from the provincial upload of Ontario Works costs to support affordable housing (Resolution 2016-601)
0.5% 0.5%
Combined Net Levy 2.8% 2.6%
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• Conservation Authorities
• Future Budget Meetings: o Thursday Dec 1st – Peel Regional Police, Ontario
Provincial Police and Departmental Presentations o Thursday Dec 8th – As required o Thursday Dec 15th – As required
Next Steps
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Investing In a Community for Life
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
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