2016 Budget Overview Presentation - Nov 26 to Clerks Notes ...€¦ · 2 *Property Tax increase...

1

BUDGET OVERVIEWPresented to Council November 26, 2015

2

*Property Tax increase assumes 42% is Region’s Portion

0.8% Property Tax Increase*

9.0% Utility Rate Increase

Impact:

Average Residential $35(avg. assessed value $452,500)

Average Small Business $61(avg. assessed value $534,300)

Average Residential $47(avg. consumption 290m3)

Average Small Business $120(avg. consumption 695m3)

2016 Property Tax & Utility Rate Increase

2

3

*Property Tax increase assumes 42% is Region’s Portion

Tax Supported Utility Rate Supported

Operational Pressures 1.4% Operational Pressures 0.8%

Infrastructure Levy 1.0% Consumption Adjustment 4.7%

Less Upload Benefit (0.6%) Infrastructure Levy 3.5%

Sub-Total 1.8%

Arterial Road Rationalization 0.1%

Net Tax Levy 1.9%

Property Tax Increase* Average Utility Rate Increase0.8% 9.0%

2016 Operating Budget Overview

3

4

Peel Region 42%

Lower Tier Municipalities

38%

Education 20%

What the Average Property Tax Bill Funds

4

5

*External Agencies Operating Budget total $485M

Regional Services, $1,657M,

77%

*Police, $427M,

20%

*MPAC, $18M,

1%

*Conservation Authorities,

$40M,2%

Tax & Utility Rate Supported - $2.1 Billion

Proposed 2016 Operating Budget

5

6

45% of Budget Funded from Property Taxes

Property Tax, $966M,

45%

Grants and Subsidies,

$522M, 25%

Utility, $349M,

16%Other, $306M,

14%

Users Pay Where Appropriate

6

7

Labour Costs 28% of Budget

Total Regionally Controlled Programs Budget $1.7B

Total Labour Costs @ 28% $465M

Program Services & Capital Reserve Contributions,

$1,192M, 72%

Labour CostsTax Based,

$258M, 15%

Labour Costs Subsidy Based,

$145M, 9%

Labour Costs Rate Based,

$62M, 4%

Regionally Controlled Programs

7

8

Non-Labour Costs 72% of Budget

Program Services &

Capital Reserve

Contributions, $1,192M ,

72%

Labour Costs, $465M,

28%

Program Services, $325M,

27%

Other Services Contracted Out,

$145M, 12%

Grants & Subsidies Transfer Payments,

$445M, 38%

Capital Reserve Contribution - Tax &

Rate, $277M,

23%


8

9


2015 Revised 2016 Proposed

FTEsAdditions/

(Reductions)FTEs

Tax Supported:Public Works 431 7 438Health Services 1,866 31 1,897Human Services 693 - 693Enterprise Programs and Services 733 2 735TOTAL: 3,723 40 3,763

Utility Rate Supported 546 9.5 556

TOTAL Region (Tax + Utility) 4,269 49.5 4,319

Note: Number may not add due to rounding


Staff Complement Increased by 1.2%

9

10

Tax Supported Programs

2016 Operating Budget

10

11

Council’s Target *

Proposed Net Budget*

Net Expenditure 3.3% 3.1%

Regionally Controlled 3.3% 3.0%

Peel Regional Police 3.3% 3.3%

OPP 1.9% 2.0%

Credit Valley Conservation 3.3% 3.3%**

Halton Conservation 3.3% 4.0%

Toronto Region Conservation 3.3% 1.0%**

Assessment Growth 1.3% 1.3%

Net Levy 2.0% 1.8%*

* Exclude Arterial Roads Rationalization (ARR)** Exclude Emerald Ash Borer Costs

Respect the Tax Payer

Net Tax Levy Increase of 1.8%*

11

12

Net levy after assessment growth

Tax Supported Programs Increase/ (Decrease)

Regionally Controlled Programs 0.9%

External Agencies 0.9%

Sub-Total 1.8%

Arterial Roads Rationalization 0.1%

TOTAL Net Tax Levy 1.9%

Tax Supported – 2016 Net Levy Pressures

12

13

2015 Services to 2016 Population $3.1

Service Demands*:

– Capital Induced 1.3

– Operating 6.4

– Arterial Roads Rationalization 1.0

Capital Infrastructure (1%) 9.4

Regionally Controlled $21.2

External Agencies** 14.7

TOTAL Pressures $35.9

$ Millions

**External Agencies include:• Peel Regional Police• Ontario Provincial Police – Caledon• Conservation Authorities• Municipal Property Assessment

Corporation

*Total Regionally Controlled Service Demands $8.7M

Tax Supported – 2016 Budget Pressures

13

14

Base Pressures (In $Millions)2016

Net Cost

Inflationary Costs 0.8

Annualization of Prior Budget Decisions 0.5

2016 Labour Costs 11.0

Less: Reduced Expenditures (9.2)

TOTAL Base Pressures $3.1

Delivering Value for Money

Cost of Delivering 2015 Service Levels to 2016 Population – Region Controlled Tax

14

15

2016 Service Demands (In $Millions)2016

Net Cost

Transportation

• Operating impact of new capital (traffic signals, lane kilometers, catch basins, signs)

0.2

Paramedic Services

• Ambulance Make Ready team for new reporting station (11 FTE)

• Operational cost of new reporting station (targeted to open October 2016) and three satellite stations

0.9

0.2

Subtotal – Capital Induced Service Demands $1.3

Meeting Priorities of Our Community

15

16


Net Cost

Paramedic Services:

• Address call volume growth (4.75%) to meet Council approved response time framework (Resolution 2015-622): add two 24/7 ambulances; (20 FTE).

3.8

Public Health:

All costs fully offset by new MOHLTC funding:

• Reserve contribution for public health priorities and response to emerging issues ($2.2M)

• Immunization of School Pupils Act changes (resolution 2014-382) –catch-up screening and enforcement ($0.2M)

• Ministry-recommended changes to HPV Vaccination Programs ($0.1M)

-

-

-


16

17


Net Cost

Transportation:

• Implementation of Council approved Accessible Transportation Master Plan including 7% trip growth (38,000 new trips) and related resources (7 FTEs)

• Implementation of ON1 Call Act to comply with legislation

1.0

0.3

Community Investment

• Not-for-profit sector funding to support sustainability and operational health.

• Investment is fully funded ($0.5 million from Provincial funding transferred from Employment program and $0.8 million from administrative savings in the Base budget)

1.3

(0.5)


17

18


Net Cost

Housing

Expansion of Existing Housing Programs

• 142 Rent supplements utilizing Provincial funding

New Housing Options

• Grants for new housing development and expansions to support up to 66 families, funded by Provincial IAH program ($6.5 million) and Internal capital reserves ($10.2 million)

0.5

-

Sub-total – Operational Service Demands: $6.4

Transportation:

• Arterial Roads Upload 1.0

TOTAL Service Demands (Capital Induced and Operating) $7.4


18

19

Request (In $Millions)Regionally Controlled Programs

External Agencies

PRP OPP CA’s MPACTotal

External

2015 Services to 2016 Population $3.1 $9.9 $0.2 $0.9 $0.3 $11.3

Service Demands 8.7 3.4 - - - 3.4

Capital Infrastructure 9.4 - - - - -

TOTAL Requests $21.2 $13.3 $0.2 $0.9 $0.3 $14.7

Total Region of Peel

2016 Budget Requests - $35.9 M

19

20

Request

2015 Services to 2016 Population

3.1

Service Demands 8.7

Capital Infrastructure (1%) 9.4

Regionally Controlled $21.2

External Agencies 14.7

TOTAL Requests $35.9

Funding Sources

Ontario Works Funding Formula Change

4.2

Court Security (Police) 1.4

Sub-Total $5.6

Assessment Growth 12.1

TOTAL Revenues $17.7

In $Millions

Gap of $18.2 M funded by a 0.8% Property Tax Increase

Responsible and Efficient

0.8% Property Tax Increase

20

21

$4

$8

$13

$15

$12

$14

$15

$22

$35

$42

$49

$8

$9

$163

$0 $40 $80 $120 $160 $200

Other *

Early Learning &Childcare

Enterprise Programs &Services

Capital Investment Plan

Public Health

Long Term Care

Social Assistance

Paramedic Services

Transportation

Waste Management

Housing

MPAC

Conservation Authorities

Police

$ -

$--

$1

$--

$--

$3.8

$--

($2.8)

$2.7

($1.4)

($0.4)

Per $100,000 assessment value:Property tax increase $7.72016 property tax: $409

$3.1

$ -

$1.7

Seniors Services

Early Years and Child Care

$ Increase on $100,000 of Residential Assessment

Note: Numbers may not add due to rounding * Other: includes Community Investment, Development Services, Public Works Operations Support, and Health Services Program Support

Where Your 2016 Tax Dollars Will Be Spent

Average home of $452,500 will see increase of $35; 2016 Tax $1,851

21

22

Utility Rate Supported Programs

2016 Operating Budget

22

23

Pressures (In $Millions) 2016Net Cost

Inflation and Service Level Growth 3.7

Capital Infrastructure 10.5

TOTAL Pressures $14.2

Utility Rate Supported – 2016 Pressures

23

Total Pressures 4.3%

Consumption Adjustment 4.7%

Average Utility Rate Increase 9.0%

24

Base Pressures (In $Millions)2016

Net Cost

Inflationary Costs 1.4

Ontario Clean Water Agency (OCWA) Contract 1.5

Contracted Out Services 1.0

Labour Costs 1.2

Less: Reduced Expenditures (1.4)

TOTAL Base Pressures $3.7

Cost of Delivering 2015 Service Levels to 2016 Population – Utility Rate Programs

Delivering Value for Money

24

25

$288.4

$303.3

$271.9

$290.2

250

260

270

280

290

300

310

2014 2015 T2

Budget Actual

Shortfall:2014-$16.5 million2015-$13.1 million

Revenue Shortfall in Millions

87.0%

13.0%

Fixed cost Variable cost

While Costs Primarily Fixed

Managing Financial Flexibility

25

26

Average Utility Rate Impact Residential Small

Business

Annual Consumption 290m3 695m3

Annual Increase $47 $120

Revised Annual Water Bill $589 $1,508

Users Pay Where Appropriate

Financial Impact of 9% Utility Rate Increase

26

27

*Based on 2015 Rates **Based on 2016 Proposed Rates

2016 Peel Combined Annual Water & Wastewater Utility Bill

(An average household in Peel uses approximately 290 cubic metres of water per year)

$-

$200

$400

$600

$800

$1,000

$1,200

Halton* Durham* Markham* Toronto* Vaughan* Peel** RichmondHill*

$1,014 $1,055 $1,011

$977

$1,023

$542

$1,057

$47

$589

Respect the Utility Rate Payer

27

28

Capital

2016 Capital Budget

28

29

29

Tax & Utility Rate Supported - $5.4 Billion

Capital Budget Funding: 37% Development Charges 59% Reserves 4% Other

Utility Supported, $2,862M,

53%

Police, $260M,

5%

Regionally Controlled Tax

Supported, $2,316M,

42%

2016 ─ 2025 Capital Plan

30

30

10-Year Capital Plan By Program ─ $2.3 Billion


Public Works, $1,596M,

69%

Human Services, $229M,

10% Health Services, $285M,

12%Enterprise

Programs & Services, $178M,

8%

CA Managed, $28M,

1%

Regionally Controlled Programs – Tax

31

31

10 Year Capital Plan By Program – $2.9 Billion

Capital Budget Funding:42% Development Charges 54% Utility Rate Supported Reserves 4% Other

Water, $1,868M,

65%

Wastewater, $935M,

33%

Operations Support-Rate,

$59M, 2%

2016 – 2025 Utility Rate Supported

32

32


• Maintain a State of Good Repair

• Non DC Growth and Other Council Priorities included where sustainable and affordable

• Growth Pays for Growth

• Cash Flow

Ensure the Capital Plan is Sustainable

33

$5.2 Billion

State of Good Repair

$2.1B / 40%

DC Funded Growth$2.0B / 39%

Non DC Funded Growth & Council

Priorities$1.1B / 21%


33

2016 – 2025 Capital Plan Classification

34

34

2016 ─ 2025 Capital Plan $2.1B / 40%

• Overall Rating: Good

• Corporate Asset Management strategy informs State of Good Repair (SOGR) and capital spending priorities

• Infrastructure includes facilities, transportation network, water and wastewater linear assets and plants

• Potential liability for the state of good repair of social housing stock and other asset risks

Maintain Assets

35

35

2016 ─ 2025 Capital Plan $1.1B or 21%

• Capital works not funded through development charges ─ $268M

• Council directed priorities:– Waste Reduction & Resource Recovery Strategy ─

$212M

– Affordable Housing ─ $50M

– Paramedic Facility program ─ $62M

– Active Transportation ─ $19M

– Lakeview Waterfront Connection ─ $28M

Strategically Designed to Meet Priorities of the Community

36

1% ↑ And Maintained 3.5% ↑ Annually for 4 Years and Maintained

Total Available Funding

(including interest)

$3.4B

Utility Supported2016 – 2035

Non–DC Capital Plan Portion to be Funded

from Utility Rate

$4.5 B

Tax Supported 2016 – 2025

Non–DC Capital PlanPortion to be Funded

from Tax

$1,403M

Total Available Funding

(including interest)

$1,511M

Potential Additional Risks

Tax Supported 1% Required

Utility Rate Supported3.5% Required

10-Year Outlook 20-Year Outlook

Pay As We Go

36

37

37

2016 ─ 2025 DC Capital Plan - $2.0B or 39%

• Victoria Reservoir & Transmission Main ─ $157M• 1500mm Feedermain ─ Burnhamthorpe ─ $110M• East Brampton Transmission Main Twinning ─ $94M• Central Brampton Sub-Transmission Main ─ $77M• East-to-West Diversion Trunk Sewer ─ $178M• Mayfield Corridor ─ $46M• Affordable housing initiatives ─ $34M• Building (Facility) for new Seniors’ Services ─ $14M• Paramedic satellite stations ─ $3M

Growth Pays for Growth

38

38

Borrow Only for Substantial Assets at Affordable Rates

0%

5%

10%

15%

20%

25%

30%

2015 2016 2017 2018 2019 2020 2021

Based on Updated Debt Forecast Provincial Annual Repayment Limit

Provincial Maximum Annual Repayment Limit

39

39

Tax & Utility Rate Supported $0.5 Billion


Utility Rate Supported,

$255M, 53%

Police, $24M,

5%

Regionally Controlled Tax

Supported, $204M,

42%

Proposed 2016 Capital Budget

40

Summary

40

2016 Budget

41

Tax Supported Programs2016

Council’s Target

2016 Proposed

Budget

Net Expenditure Increase: 3.3% 3.1%

Regionally Controlled Programs 3.3% 3.0%

External Agencies 3.3% 3.2%

Net Tax Levy Increase before ARR 2.0% 1.8%Arterial Roads Rationalization (ARR) 0.1%Net Tax Levy 2.0% 1.9%Property Tax Impact* (*ROP @ 42%) 1.3% 0.8%

Utility Supported Programs

Operations 2.5% 0.8%

Consumption Adjustment - 4.7%

Capital Infrastructure 3.5% 3.5%

Average Utility Rate Impact 6.0% 9.0%41

2016 Budget vs Target

42

42

Regional Property TaxNet Budget Residential

Impact

Small

Increase Business

Police (PRP & OPP) 0.9%

Conservation/Assessment 0.1%

Regional Operating 0.4%

Arterial Road Rationalization 0.1%

Infrastructure Levy 1.0%

Net Levy Increase Before Upload 2.5% $46 $80

Provincial Upload Benefit (0.6%)

TOTAL Net Levy Increase 1.9%

Property Tax Increase (*ROP @ 42%) 0.8% $35 $61

Annual Tax Assessed Value of $452,500 $1,851

Annual Tax Assessed Value of $534,300 $3,238

Responsible and Efficient

Average Property Tax Increase of 0.8%

43

% 2012 2013 2014 2015

Region of Peel 0.56 0.55 0.64 0.80

Average of three Area Municipalities

1.96 2.29 1.72 1.80

Education 0 0 0 0

Average Property Tax Impact 2.52 2.84 2.36 2.60

Note: assumes weighted average with Peel at 42%, Area Municipalities at 37% and Education at 21%

43

Focus on The Single Taxpayer

44

44

Scenario 1 Scenario 2 Scenario 3 Scenario 4

Region (at 1.9% net levy increase)

0.8 % (1.9%x42.0%)

0.8 % (1.9%x42.0%)

0.8 % (1.9%x42.0%)

0.8 % (1.9%x42.0%)

Area Municipality (at 3.0%,4.0%,5.0% or 6.0% net levy increase)

1.1%( x37.5%)

1.5%( x37.5%)

1.9%( x37.5%)

2.3%( x37.5%)

Education (at 0%)0.0%

(0%x20.5%)0.0%

(0%x20.5%)0.0%

(0%x20.5%)0.0%

(0%x20.5%)

TOTAL Property Tax Impact

1.9% 2.3% 2.7% 3.1%

3.0%

Example For Illustrative Purposes Only

Average Residential Property Tax Impact

6.0%5.0%4.0%

45

45

46

Tax Supported Programs 2017 2018 2019

Regionally Controlled Programs 4.0% 3.5% 4.2%

External Agencies 3.7% 3.2% 4.3%

Net Tax Levy Increase 3.9% 3.4% 4.2%

Assessment Growth 1.2% 1.1% 1.0%

Net Tax Levy Impact 2.7% 2.3% 3.2%

Utility Supported Programs 2017 2018 2019

Operations 0.4% 1.5% 1.4%

Capital Infrastructure 3.5% 3.5% 3.5%

Average Utility Rate Impact 3.9% 5.0% 4.9%

46

2017 to 2019 Outlook

47

47* Exclude Emerald Ash Borer Costs and Arterial Road Rationalization.

2017 Budget Target

Proposed Net Tax Levy Target of 2.1%

Tax Supported Programs2017

ForecastProposed

2017 Target *

Net Expenditure 3.9% 3.3%

Regionally Controlled Programs 4.0% 3.3%

Peel Regional Police 3.3% 3.3%

OPP 2.1% 2.1%

Credit Valley Conservation 8.2% 3.3%

Halton Conservation 8.6% 3.3%

Toronto Region Conservation (2.6%) (2.6%)

Assessment Growth (1.2%) (1.2%)

Net Levy 2.7% 2.1%

48

• Peel Regional Police Presentation

• Future Budget Meetings:

- Thursday Dec 3rd : Ontario Provincial Police, Conservation Authorities and Departmental Presentations

- Thursday Dec 10th – As required

- Thursday Dec 17th – As required

48

Next Steps

2016 Budget Overview Presentation - Nov 26 to Clerks Notes ...€¦ · 2 *Property Tax increase...

Documents

Transcript of 2016 Budget Overview Presentation - Nov 26 to Clerks Notes ...€¦ · 2 *Property Tax increase...