City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN...

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Page 1 City of Brampton Budget 2017 Presentation to Budget Committee November 28, 2016

Transcript of City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN...

Page 1: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 1

City of Brampton

Budget 2017

Presentation to

Budget Committee

November 28, 2016

Page 2: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 2 BUDGET COMMITTEE

November 28, 2016

OUTLINE

• Teamwork

• Where We Are and How We Did It

• Future Ready Momentum

• Value to Citizens

• Operating Budget

• Capital Budget

• New Information: Good News

• Summary

Overview

Page 3: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 3 BUDGET COMMITTEE

November 28, 2016

• Unprecedented team-based approach

• Corporate line of sight

• Continued commitment to infrastructure and our core services

• Modernizing operations with valuable investments in our human resources and procurement

• Continuous innovation and improvements as we work together

to build a future-ready Brampton

• Transformation realized efficiencies without affecting our service delivery

TEAMWORK

Overview

Page 4: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 4 BUDGET COMMITTEE

November 28, 2016

4.9% 3.6% 2017 Budget

IN PRINCIPLE

2017 Budget

PROPOSED Net savings: $5.5M

Property Tax Impact City, Region, Schools

2.5%

TEAMWORK

Overview

Page 5: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 5 BUDGET COMMITTEE

November 28, 2016

2017 PROPOSED INCREASE

3.0% 2017 Budget : Approved in Principle 4.9%

Transformation cost improvements $8.3M 2.0%

• Reinvesting in organizational gaps

(Human Resources, Purchasing, Library)

• Absorbing lower than expected assessment

• Other investments

Net savings

2017 Budget : Proposed 3.6%

Unanticipated pressures:

-$2.8M -0.7%

$5.5M 1.3%

PROPERTY

TAX

IMPACT

Overall City

Overview

2.5%

Page 6: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 6 BUDGET COMMITTEE

November 28, 2016

2017 PROPOSED COMPLEMENT

-

20

40

60

80

100

120

140

August 2016 Now

Fire & Emergency Services Transit Other

Overview

Page 7: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 7 BUDGET COMMITTEE

November 28, 2016

SUSTAINABLE TRANSFORMATION

2017 2018 2019 & beyond

Cost reduction $3.8M $4.3M $4.3M

Cost avoidance $4.5M $7.8M $7.8M

Total $8.3M $12.1M $12.1M

Term of Council: $20.4M

Cost Improvements

Key benefits: • More agile, responsive organization

• Clarity in roles and objectives

• Changing the corporate culture

Sustainable

financial benefits are a

by-product of this change

Overview

Page 8: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 8 BUDGET COMMITTEE

November 28, 2016

Good Government

Move & Connect

Smart Growth

Strong Communities

• Corporate transformation: increased productivity, $8.3M cost improvement

• CD Howe A-, Standard & Poor’s Triple-A

• Codes of Conduct, Lobbyist and Gift Registries

• Community engagement and ethnic media programs

• Multi-year budgeting

• Corporate Asset Management Plan

• Enhanced Züm services

• Expanded GO Services, rail network, innovation corridor

• Applied for $65M PTIF funding for Transit initiatives

• $63M capital roads, resurfacing, bridge and trail projects

• University announced for Brampton

• Economic Development and Culture refocused

• Official Plan Review, Environment, Cultural Heritage Master Plans

• Riverwalk downtown revitalization kickoff

• $40M City-invested to Peel Memorial construction opening

• Renewed Recreation focus on community health, wellness

• Youth engagement survey completed

• Inclusion and equity initiatives

STRATEGIC PLAN: 2016 Accomplishments

Overview

Page 9: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 9 BUDGET COMMITTEE

November 28, 2016

FUTURE READY: Momentum

Continue to modernize our corporation

• Be more innovative

• Build trust and confidence

Engage and empower employees

• Think bigger

• Focus on progress over process

• Hold each other accountable for high standards

• Increase speed, agility, responsiveness

COUNCIL’S VISION Brampton is a connected city that is innovative, inclusive and bold

Overview

Page 10: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 10 BUDGET COMMITTEE

November 28, 2016

“We estimate that Brampton’s

economy is very strong… We view

the city’s economy as dynamic and

well diversified, which robust

population growth supports.”

Standard & Poor’s

Brampton is a global market leader :

• Top 10 Mid-Sized American Cities of the

Future 2015/16

• Top 10 for Business Friendliness and

Connectivity

fDi Intelligence, a division of the Financial Times (UK)

FUTURE READY: Momentum

Overview

BRAMPTON

Page 11: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 11 BUDGET COMMITTEE

November 28, 2016

We are growing.

We are young.

We are diverse.

2016 540,000

2031 843,000

Our median age is younger than the 10 most

populated cities in Canada, Ontario, and the

Greater Toronto Area. 34.7

Over 50% of Brampton’s population was born

outside Canada.

• 209 distinct ethnic backgrounds

• 89 different languages

OUR COMMUNITY

Overview

Page 12: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 12 BUDGET COMMITTEE

November 28, 2016

3.6%

VALUE TO CITIZENS

New and Enhanced • new services

• improving existing services

Infrastructure Levy • facilities, roads, bridges

• repair and replacement

0.8% Base Operating Increase • wages, collective agreements

• contracted services

• supplies, fuel

0.8%

2.0%

Overview

2017 Budget

PROPOSED

Page 13: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 13 BUDGET COMMITTEE

November 28, 2016

BASE OPERATING INCREASE

2017 Proposed: 0.8%

• Respond to population growth

• Maintain service levels

• Accommodate inflation

Overview

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Base Operating Increase Toronto CPI Ontario CPI

CPI: Consumer Price Index (inflation)

Page 14: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 14 BUDGET COMMITTEE

November 28, 2016

NEW & ENHANCED: Transit

Community Value

• Züm growth, BRT and

support corridors

• Better connectivity

- Spadina subway link

• Increased frequency and

service levels

• Ridership increase of 500,000

Overview

Page 15: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 15 BUDGET COMMITTEE

November 28, 2016

NEW & ENHANCED: Fire

Community Value

• Provides first full response in

8 minutes, 90% of the time

(from current 27%)

• Improves response times

• Puts another fire apparatus in

service

• Meets NFPA* standards

* NFPA = National Fire Protection Association

Current

Levels

Overview

Page 16: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 16 BUDGET COMMITTEE

November 28, 2016

INFRASTRUCTURE LEVY

Infrastructure Levy: 2.0% • Total asset replacement cost =

$5.1B (excluding land)

• Maintain existing assets

• Leverage Federal and

Provincial funding

Overview

Page 17: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 17 BUDGET COMMITTEE

November 28, 2016

INFRASTRUCTURE LEVY

Overview

Page 18: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 18 BUDGET COMMITTEE

November 28, 2016

LEVERAGING INVESTMENTS

F: $25.3B

P: $55B

F: $21.9B

P: $325M

F: $10.1B

P: $26B F: $21.9B

P: $52B

Federal: $180B over 11 years

Transport

Green Transit

Social

Provincial: $137B over 10 years

Overview

Page 19: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 19 BUDGET COMMITTEE

November 28, 2016

PROPERTY TAX IMPACT

Property Tax Impact City, Region, Schools

2.5%

3.6% New and Enhanced

Infrastructure Levy

0.8% Base

0.8%

2.0%

Overview

2017 Budget

PROPOSED

Page 20: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 20 BUDGET COMMITTEE

November 28, 2016

TYPE OF HOME VALUE TOTAL INCREASE

Average Residential $443,000 $4,695 $115

Single Detached

$507,000

$5,360

$132

Semi Detached $369,000 $3,889 $96

Townhouse $353,000 $3,728 $92

Condominium $240,000 $2,591 $62

2017 RESIDENTIAL TAX BILL

Overview

Page 21: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 21 BUDGET COMMITTEE

November 28, 2016

Operating Budget

Page 22: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 22 BUDGET COMMITTEE

November 28, 2016

*Forecast year-end actuals based on June 30, 2016 actual results

($000s)2016

BUDGET

2016

ACTUALS*

2017

BUDGET

2017 vs 2016

BUDGET

%

CHANGE

Labour Expenditures 359,079 351,231 370,472 11,394 3.2%

Other Expenditures 287,975 284,988 261,096 (26,879) -9.3%

Total Expenditures 647,054 636,219 631,568 (15,485) -2.4%

Gross Revenues (647,054) (636,219) (631,568) 15,485 -2.4%

2017 OPERATING BUDGET

Operating

Proposed

Page 23: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 23 BUDGET COMMITTEE

November 28, 2016

Property Tax Related Expenditure Budget $631,568

Less:

Contributions to Reserve Funds 68,549

Add:

Amortization (Depreciation Expense) 129,354

Project Expenses that are Operating in Nature 33,797

Post Employment and Other Liabilities 4,638

Full Accrual Expenditure Budget 730,808

Property Tax Related Revenue Budget 631,568

Less:

Contributions from Reserve Funds 27,868

Add:

Recognized Development Charges, Grants & Subsidies 167,810

Developer Contributed Assets 78,913

Interest Earned on Reserves 9,717

Full Accrual Revenue Budget 860,141

Net Surplus / (Deficit) $129,332

2017 FULL ACCRUAL BUDGETING

Operating

Proposed

Page 24: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 24 BUDGET COMMITTEE

November 28, 2016

OPERATING BUDGET: Department

Operating

Approved

($000s)2016

BUDGET

2017

BUDGET

2018

BUDGET

2019

BUDGET

DEPARTMENT BREAKDOWN

Office of the CAO $21,733 $23,004 $23,107 $23,517

Corporate Services 47,771 48,964 50,136 51,916

Planning & Development Services 293 1,651 1,868 1,889

Public Works & Engineering 88,554 90,947 94,134 97,218

Community Services 66,476 67,214 68,354 70,153

Economic Development 6,766 6,875 6,967 7,095

Fire & Emergency Services 60,427 62,418 64,730 70,101

Transit 60,917 63,200 66,145 68,010

Brampton Public Library 13,925 15,612 16,583 17,239

Mayor & Members Of Council 3,240 3,148 3,173 3,198

General Government (370,102) (367,647) (377,794) (389,609)

Departmetal Sub Total $0 $15,386 $17,400 $20,724

Property Tax Levy Increase (15,386) (17,400) (20,724)

Net Expenditure $0 $0 $0 $0

ProposedProposed

Page 25: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 25 BUDGET COMMITTEE

November 28, 2016

CHANGES TO OPERATING BUDGET

Operating

1% of City property tax levy = $4.2M

2017-2019 Operating Budgets ($000s) 2017 2018 2019

Base Operating and Growth 3,659 4,693 6,615

New or Enhanced Services 3,284 3,656 4,460

Infrastructure Levy 8,443 9,050 9,649

TOTAL Variance 15,386 17,400 20,724

Budget Increase % 3.6% 3.8% 4.3%

Proposed

Page 26: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 26 BUDGET COMMITTEE

November 28, 2016

2017 REVENUES BY CATEGORY

Operating

Page 27: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 27 BUDGET COMMITTEE

November 28, 2016

Potential City contribution sources

• University Levy

• Legacy Fund

• Land and/or infrastructure

UNIVERSITY

Workplan funding recommendation: $264K annually

(funded from former BDDC grant)

Operating

Page 28: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 28 BUDGET COMMITTEE

November 28, 2016

Capital Budget

Page 29: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 29 BUDGET COMMITTEE

November 28, 2016

2017-2019 Capital Budgets ($000s) 2017 2018 2019 TOTAL

Public Works & Engineering 61,970 82,337 81,409 225,716

Community Services 34,700 39,107 55,170 128,977

Transit 71,421 18,298 25,748 115,467

Corporate Services 6,503 6,290 7,427 20,220

Fire & Emergency Services 5,330 7,675 3,821 16,826

Planning & Development Services 1,667 1,635 1,505 4,807

Other 1,676 1,346 1,800 4,822

Totals 183,267$ 156,688$ 176,880$ 516,835$

CAPITAL BUDGET

Capital

Proposed

Page 30: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 30 BUDGET COMMITTEE

November 28, 2016

MAJOR INITIATIVES

• Facility repair and replacement

• Sandalwood Transit Facility expansion

• Road resurfacing

• Road widenings

• Züm Airport Road expansion

• New buses

Capital

Page 31: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 31 BUDGET COMMITTEE

November 28, 2016

2017 CAPITAL BUDGET: Funding

Capital

Page 32: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 32 BUDGET COMMITTEE

November 28, 2016

2017 20182019 &

Beyond

Grand

Total

Tax Bill

($)

Property

Tax %

Corporate Services $8,020 $850 $550 $420 $1,820 $9 0.4%

Public Works & Engineering 6,011 297 29 261 587 3 0.1%

Community Services 2,035 35 35 0 0.0%

Fire & Emergency Services 1,700 1,636 924 2,560 13 0.6%

Transit 69,769 2,035 1,746 3,781 19 0.9%

Grand Total $87,535 $1,147 $4,285 $3,351 $8,783 $44 2.1%

* Based on 2017 Average Residential Home Assessment of $443,000

Average Household

Impact*Department

Capital

Budget

($000s)

Operating Impact ($000s)

2017 CAPITAL BUDGET: Operating Impacts

Capital

Proposed

Page 33: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 33 BUDGET COMMITTEE

November 28, 2016

2017 FINANCING: Internal Borrowing and Debt

Capital

($000s) Funding Sources Debt Amount Yearly RepaymentBudget

Increase %

Internal Debt - DC

Supported

Community

Investment Fund$9,305 $1,121 N/A

External Debt - Tax

SupportedDebenture $11,237 $1,310 0.3%

* Based on 2017 Average Residential Home Assessment of $443,000

Page 34: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 34 BUDGET COMMITTEE

November 28, 2016

Recommendation:

• Increase contribution to infrastructure = $800K

• Reduce City’s budget increase from 3.6% to 3.5% = $500K

ASSESSMENT GROWTH

Property Tax Impact City, Region, Schools

2.4%

Final assessment growth is

$1.3 million higher than forecast

2.5%

Page 35: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 35 BUDGET COMMITTEE

November 28, 2016

SUMMARY

• Responsible budget

• Build on our momentum

– Teamwork

– Trust and confidence

– Continuous improvement and innovation

– Modernize our corporation

Together we

will build a

future ready

Brampton

Page 36: City of Brampton Budget 2017 · BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET DEPARTMENT BREAKDOWN Office of the CAO $21,733 $23,004 $23,107 $23,517 Corporate Services 47,771 48,964

Page 36 BUDGET COMMITTEE

November 28, 2016

UPCOMING BUDGET MEETINGS

Budget Committee

Mon. Nov. 28 9:30am – 5:00pm

7:00pm – 10:00pm Deliberations (Day 1)

Tue. Nov. 29 9:30am – 5:00pm Deliberations (Day 2)

Wed. Nov. 30 9:30am – 5:00pm Deliberations (Day 3, if required)

Thu. Dec. 1 3:00pm – 5:00pm Deliberations (Day 4, if required)

Special Council Meeting

Wed. Dec. 14 7:00pm – 10:00pm 2017 Budget Approval