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YOUR NIAGARA REGION

2012 APPROVED

BUDGET

PRESENTATION TO TOWN OF FORT ERIE

How the budget worksNiagara Region's budget has three components, the operating budget, which is similar to your day-to-day costs like gas, groceries or phone bill and the capital budget which is like your longer-term infrastructure investments, similar to your car or house and the rate budget.

The operating budget pays for the daily business of the Niagara Region and its boards and agencies. This budget pays for programs and services, including the staff to deliver those services, supplies and repayment of debt for major projects.

The capital budget is the annual plan for the purchase of capital assets, such as: roads, water treatment plants, sewers, buildings, machinery and equipment.

The rate budget pays for rate based services such as waste management, curbside collection, management of a recycling facility and landfill sites as well as the production of water and treatment of wastewater.

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2012 Budget ProcessMeeting Dates Times Topic / DiscussionBudget Review Committee of the Whole (BRCOTW)

June 9, 2011 6:30 p.m. -9:30 p.m. 2012 Budget guidance

BRCOTW Sept. 8, 2011

6:30 p.m. - 10 p.m. Rate methodology

BRCOTW Sept. 22, 2011

6:30 p.m. - 10 p.m. 2012 operating and capital budget update, Q2 budget to actual

BRCOTW Oct. 13, 2011 8:30 a.m. - 4:30 p.m. Levy operating budget presentations

BRCOTW Oct. 20, 2011 4 p.m. - 10 p.m. Rate operating presentations (Niagara Peninsula Conservation Authority)

Public Engagement Oct. 24, 2011

7 p.m. - 9 p.m. Water Wastewater and Waste Management budgets and operations

Public Engagement Oct. 26, 2011 & Nov. 2, 2011

7 p.m. - 9 p.m. Draft operating and capital budgets

BRCOTW Nov.3, 2011 6:30 p.m. - 10 p.m. Capital budget approval and operating updated. NRPS and Economic Development updates

BRCOTW Nov.10, 2011 4 p.m. - 10 p.m. Rate budget approval; operating update; Q3 budget to actual and forecast update

BRCOTW Dec. 1, 2011

6:30 p.m. - 10 p.m. Levy operating budget and user fee by-law approval

BRCOTW Dec. 8, 2011 4 p.m. - 10 p.m. If required3

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2012 Approved Budget

After almost 50 hours of budget deliberations,Regional Council approved the followingbudgets, on December 1, 2011:

• Operating• Capital• Rate

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Affordability and Sustainability

 Income growth + Assessment growth = Affordability Today

(2.0%  to 3.8%) + 1.0% = 3.0% to 4.8%

June 9, 2011 Budget Guideline

Presentation

 

 

  Sustainability means meeting

the needs of the present without compromising the ability of

future generations to meet their own needs.

Contingency reservesEmployee future benefits

Infrastructure gap

Property Taxes in Niagara Region

Niagara Region property taxes fund services in your community.

Your property taxes are divided into three areas:

Niagara Region

Local area municipality

School Board / Education

6

49%

34%

17%

Property Tax Distribution

Niagara RegionLocal AreaSchool Board/Ed-ucation Tax

Property Taxes in Fort Erie

Fort Erie property taxes fund services in your community.

Your property taxes are divided into three areas:

Niagara Region

Fort Erie

School Board / Education

7

43%

40%

17%

Property Tax Distribution

Niagara Region

Fort Erie

School Board/Educa-tion Tax

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Historical Property Tax Increase Comparison Including Growth

Durham Peel Ottawa Hamilton York Waterloo London Halton Niagara0.0%

4.0%

8.0%

12.0%

16.0%

20.0% 18.8% 17.8% 17.4%15.3%

13.5% 13.2%

10.3%

7.5%

1.3%

2007 to 2011

Historical Review of the Levy

9Affordability

Sustainability

Gap

Equivalent to 0.44% Annual Tax Increases after assessment growth

2012 amounts above the line are sustainability decisions to be discussed later in presentation

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Increase Before Assessment Growth Increase After Assessment GrowthIncrease Before Growth and Upload Increase After Growth and Before Upload

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Your property tax increases, after assessment growth, for the past 10 years:

Year Tax Increase

2002 2.84 per cent

2003 5.42 per cent

2004 4.30 per cent

2005 3.87 per cent

2006 1.95 per cent

2007 2.19 per cent

2008 0.04 per cent

2009 1.24 per cent

2010 (-0.8) per cent

2011 (-1.37) per cent

2012 3.14 per cent

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Proposed 2012 Property Tax ChangesArea Guidance Levy

Change Impact on

Levy Cost Per

Household *

Proposed 2012 Budget $8,176,760 $6,523,830 2.31%

Assessment Growth -1.00%

Proposed 2012 Budget - Affordability 1.31% $17.06

* Estimated impact to the Average Residential Home (2011 average assessment = $219,732)

New Programs 550,000 0.19% $2.54

Total Sustainability & New Programs $5,191,447 1.84% $23.97

Total Levy Increase Affordability & Sustainability $11,715,156 3.14% $41.03

Sustainability Decisions

• Inter-Municipal Transit• NRPS Interim Accommodations• 2009 OMPF Reconciliation• Contingency Reserve

2,048,5372,017,910

(1,725,000)$2,300,000

0.7%0.7%-0.6%0.8%

$9.46$9.32

$(7.97)$10.62

2012 Proposed Operating Budget

Total Gross Revenue Property Taxpayers/Rate Payers (what you pay)

Programs paid through your tax levy dollars

$618.8 million $324.6 million $294.5 million

Programs paid through rates

$159.4 million $20.3 million $139.1 million

Total: $778.2 million $344.6 million $433.6 million

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Proposed 2012 Capital Budget

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Department Proposed 2012 BudgetEmergency Capital Levy $1,000,000

Information Technology Solutions 2,500,000

Properties Management 11,280,000

Integrated Community Planning 110,000

Community Services 1,297,100

Public Health and Emergency Medical Services 1,850,000

Fleet 3,346,000

Transportation 54,490,000

Niagara Regional Housing 8,190,850

Niagara Regional Police Services 2,730,000

Waste Management 5,700,000

Water 22,150,000

Wastewater 34,330,000

Total: $148,973,950

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Proposed 2012 Capital Financing Financing Source Amount Capital Levy $9,245,000Unfunded Capital Levy $2,900,000* Long-term Debt 34,773,597 Reserves 65,726,676 Development Charges 15,995,000 Cost Sharing with Area Municipalities 4,200,000 Federal Gas Tax 13,100,000 Other Grants and Subsidies 3,033,677 Total: $148,973,950

* Staff to provide funding alternates to Council through Corporate Service Committee in 2012

SERVICES FUNDED BY YOUR TAX DOLLARS

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Where do your tax dollars go?Program or Service What you pay

Leadership and Governance $10.70

Public Health and Emergency Medical Services $106.21

Corporate Services $61.17

Community Services $168.02

Public Works $112.57

Integrated Community Planning $28.84

General Government Expenses $230.14

Provincial Offences Court Administration ($4.62)

Niagara Regional Housing $122.75

Niagara Economic Development Corporation $8.99

Niagara Peninsula Conservation Authority $30.28

General Government Revenues ($115.63)

Niagara Regional Police Service $576.71

Sustainability and New Programs $23.97

Total: $1,360.11

Rate Services What you Pay

*Garbage, Recycling, Organics

$167.57 (or $3.22 per week)

Total Regional Taxes

$1,527.68

(including garbage, recycling and organics)

House assessed at $219,732 in 2011

*The cost of garbage, recycling and organics differs for each municipality, $167.57 is the average cost.

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Community ServicesSeniors Services for 1,500 seniors at eight long-term care homes and over 4,000 seniors through seniors community programs

Children’s Services for more than 15,447 children from birth to 12 yearsSocial Assistance and Employment Opportunities for 35,507 residents monthly Emergency Shelter, Hostels and Homelessness Prevention for more than 9,000 annually

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Community Services Program / Service Total budget

(2012)Niagara’s Share (tax levy 2012)

What you paid in 2011

What you will pay in 2012

Seniors Services $72.2 million $4.6 million $21.23 $21.12

Children’s Services $31.5 million $6.2 million $28.25 $28.55

Social Assistance and Employment Opportunities (SAEO)

$119.2 million $25.1 million $116.69 $115.90

Emergency Shelter, Hostels & Homelessness Prevention

$1.6 million $0.5 million $2.30 $2.45

Total Community Services

$224.5 million $36.4 million $168.47 $168.02

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Public HealthDeliver public health programs and services in the in the following areas:

Communicable disease control

Immunization

Sexual health

Dental health

Environmental health

Chronic disease and injury prevention

Health promotion and information

Family health

Emergency Medical Services (responds to over 72,000 calls annually)

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Public Health

Program / Service

Total budget (2012)

Niagara’s Share (tax levy 2012)

What you paid in 2011

What you will pay in 2012

Public Health: • Promotion • Protection • Prevention

$36.3 million

$6.9 million

$31.83 $31.88

Niagara Emergency Medical Services

$36.6 million

$16.1 million

$74.39 $74.33

Total Public Health

$72.9 million

$23.0 million

$106.22 $106.21

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Integrated Community PlanningRegional Clerk’s OfficeCorporate CommunicationsRegional Policy PlanningRegional Emergency ManagementCommunity and Corporate PlanningInter-governmental agenda for planning

Total Budget (2012)

Niagara’s Share

(tax levy 2012)

What you paid in 2011

What you will pay in 2012

*$7.0 million $6.2 million $28.79 *$28.84

21*Excludes new programs. New programs = additional $2.54

Leadership and Governance Offices of the Regional Chair, Members of Council

and Chief Administrative Officer:Overall political and administrative leadership and governance Champion and execute Council’s Business PrioritiesChair is Chief Executive Officer and represents Region provincially, nationally and internationally

Executive management of corporation, staff, the delivery of programs and services, development of policy and advice to Chair and Council in pursuit of Council’s Business Plan

Total Budget (2012)

Niagara’s Share

(tax levy 2012)

What you paid in 2011

What you will pay in 2012

$2.3 million $2.3 million $10.93 $10.70

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Corporate Services Financial Management and PlanningLegal ServicesHuman ResourcesFacilities ManagementIT Solutions

Total BudgetNiagara’s

Share(tax levy 2012)

What you paid in 2011

What you will pay in 2012

$14.4 million $13.2 million $60.65 $61.17

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General Government Expenditures/Revenues General Government

Total budget (2012)

Niagara’s Share (tax levy 2012)

What you paid in 2011

What you will pay in 2012

Expenditures $51.8 million $49.8 million $225.24 $230.14

Revenues ($25 million) ($25 million) ($116.79) ($115.63)

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Debt Charges $30,966,486 Responsive Region $200,000911 Emergency Phone $1,207,888 Capital Financing $8,941,517Contingency $600,000 Investment Income $11,325,000MPAC $5,912,113

Public Works

Transportation Services maintains over 750 km of roads, 179 bridges, and culverts and 295 traffic signals, including snow removal services Development Services reviews over 550 development applications annually, approval & inspection of 370 private sewage systems annually

Program / Service Total budget (2012)

Niagara’s Share (tax levy 2012)

What you paid in 2011

What you will pay in 2012

Administration $0.025 million $0 $4.11 $0

Transportation* $26.6 million $23.6 million $103.92 $108.88

Development Services $1.5 million $0.8 million $3.69 $3.69

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Public Works - Rates Waste Management curbside collection of recyclables, organics and garbage, management of a recycling facility and 14 landfill sites Water Services: 59 billion litres of water per year treated at six plants and transmitted through 53 facilities and 307 km of watermains Wastewater Treatment: 79 billion litres of wastewater treated at 11 plants and collected through 123 pump stations and 316 km of wastewater mains

Program / Service

Total Budget - 2012(incl. capital financing)

Rate/Requisition to Local Municipalities – 2012

Average Regional Cost per Household in 2012*

Estimated Average Retail Increase/ (Decrease) per Household in 2012**

Waste Management

$52.3 million $34.0 million $168 ($2.15)

Water & Wastewater

$107.1 million $105.0 million $423 $14.00

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* For water & wastewater, determined using total rate/requisition amount to local municipalities divided by total flows for a household consuming 250 M3 per year

** Final residential impact due to Regional rate & requisition varies by local municipality and is subject to local budget processes including decisions on consumption, assessment value, allocation of cost between fixed & variable rates, and application of other funding sources. Based on assessment value of $219,732, 1% assessment growth, water consumption of 250 M3 and meter size of 5/8”.

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Estimated Average Household Impact*Waste Management Services

Estimated Household Cost *(CVA of $219,732 & 1% assessment growth)

Municipality 20112012

EstimatedEstimated

Change

Fort Erie $ 171 $ 165 $ (6)Grimsby 126 121 (5)Lincoln 126 125 (1)Niagara Falls 142 144 1 NOTL 175 177 2 Pelham 128 130 3 Port Colborne 254 232 (22)St. Catharines 172 175 4 Thorold 165 162 (3)Wainfleet 142 165 23 Welland 228 208 (21)West Lincoln 128 139 11 Average 170 167 (2)

* Final residential impact is subject to final assessment values & local budget processes

Agency, Boards and Commissions

Niagara Regional Police Service Provincial Offences Court Administration Niagara Peninsula Conservation

Authority Niagara Regional Housing Niagara Economic Development

Corporation

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Agency, Boards and CommissionsProgram / Service Total

budget (2012)

Niagara’s Share (tax levy 2012)

What you paid in 2011

What you will pay in 2012

Niagara Regional Police Service

$138.0 million

$124.9 million

$569.50 $576.71

Provincial Offences Court Administration

$8.1 million ($1 million) ($4.45) ($4.62)

Niagara Peninsula Conservation Authority*

$6.9 million $6.6 million $29.78 $30.28

Niagara Regional Housing

$49.3 million

$26.6 million $120.18 $122.75

Niagara Economic Development Corp.*

$1.9 million $1.9 million $8.84 $8.99

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Where do your tax dollars go?Program or Service What you pay

Leadership and Governance $10.70

Public Health and Emergency Medical Services $106.21

Corporate Services $61.17

Community Services $168.02

Public Works $112.57

Integrated Community Planning $28.84

General Government Expenses $230.14

Provincial Offences Court Administration ($4.62)

Niagara Regional Housing $122.75

Niagara Economic Development Corporation $8.99

Niagara Peninsula Conservation Authority $30.28

General Government Revenues ($115.63)

Niagara Regional Police Service $576.71

Sustainability and New Programs $23.97

Total: $1,360.11

Rate Services What you Pay

*Garbage, Recycling, Organics

$167.57 (or $3.22 per week)

Total Regional Taxes

$1,527.68

(including garbage, recycling and organics)

House assessed at $219,732 in 2011

*The cost of garbage, recycling and organics differs for each municipality, $167.57 is the average cost.

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THANK YOU

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