CRP OV-1
2015 Business Plan and Budget
Corporate Overview
Budget Sub-CommitteeFebruary 11, 2015
CRP OV-2
Budget Process and Public Input
Feb 11 Budget Sub-Committee
Feb 17 Budget Sub-Committee
Feb 18 Budget Sub-Committee
Feb 18 (evening) Community Dialogue #1 (Introduction to Budget Planning)
Feb 19 – Mar 24 Radio, TV, print media stories and appearances
Feb 24 Council Workshop (Strategic Priorities)
Feb 24 – Mar 13 5 Tele-Town Halls (1 per ward pairing)
Mar 24 (evening) Community Dialogue #2 (Preliminary Budget Presentation)
Mar 30 Budget Committee Deliberations
Mar 31 Budget Committee Deliberations
Apr 2 Budget Committee Deliberations
Apr 8 Special Council Meeting to approve Budget
CRP OV-3
Current and Future Situation
• Provincially mandated as a high-growth municipality
• Infrastructure repair and replace – plan to address gap
• Transition to full accrual budgeting beginning in 2015
• Address unspent capital
• Improve accountability and transparency
CRP OV-4
City of Brampton Organizational Structure
CRP OV-5
7-Year Historical Average – Property Tax Bill
$1,365 $1,445 $1,478 $1,526 $1,589 $1,733* $1,792*
$1,457 $1,489 $1,502 $1,516 $1,515
$1,543 $1,570
$760 $753 $747 $739 $729
$736 $738 $3,583 $3,687 $3,727 $3,782 $3,834
$4,012 $4,100
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2008 2009 2010 2011 2012 2013 2014
Pro
pert
y T
ax
Budget Year
City of Brampton Region of Peel School Boards*Includes Peel Memorial HospitalLevy: $52 (2013) and $50 (2014)
CRP OV-6
2014 Residential Property Tax Bill – Total
6
City of Brampton
$1,742
Hospital Levy$50
Region of Peel$1,570
School Boards
$738
* Based on 2014 average household with an MPAC assessed value of $364,000 (Brampton)
CRP OV-77
Tax Increases (Blended – Excluding Education)
* Hospital Levy initiated in 2013
2.5% 2.5% 2.5%
1.2%
1.7%2.0% 2.1%
1.3%
1.4%
1.6%1.8% 1.7%
0.8%
1.0%0.5%
0.5%
0.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
2007 2008 2009 2010 2011 2012 2013 * 2014
Ta
x %
In
cre
as
e
Year
Region
Hospital
City
3.5%
CRP OV-8
Residential % of Property Taxes Collected
8
• Mississauga includes Pearson International Airport
Source: 2013 Financial Information Returns
50%
55%
60%
65%
70%
75%
80%
CRP OV-9
(1) 3 Bedroom, 1200 sq ft (2) 4-5 Bedroom, 3000 sq ft
Source: 2014, BMA Management Consulting Inc.
SINGLE DETACHED (1)
Markham $4,825 Vaughan $4,360Oshawa $4,013Mississauga $3,984Whitby $3,854Hamilton $3,747Brampton $3,657Oakville $3,512Richmond Hill $3,476Burlington $3,410
SENIOR EXECUTIVE (2)
Markham $6,206Oshawa $6,087 Oakville $6,055Hamilton $5,995Whitby $5,962 Vaughan $5,931Burlington $5,817Mississauga $5,702Richmond Hill $5,672Brampton $5,598
Residential Tax Comparisons - Municipalities
9
CRP OV-10
7-Year Historical Revenues
62.5% 62.9% 65.0% 66.0% 67.1% 67.4% 68.0%
27.5%25.5% 25.5%
26.0%26.0%
25.8%25.2%
10.0%11.6% 9.5%
8.0%6.9%
6.8%
6.8%
$371,636 $400,817 $408,235
$429,554 $454,903
$491,075
$530,109
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2008 2009 2010 2011 2012 2013 2014
Gro
ss E
xp
en
dit
ure
s (
000's
)
Budget Year
Revenues as a Percentage of Gross Expenditures
Taxes and PIL's User Fee and Service Charges Other Revenues
CRP OV-11
2014 City Budget – Property Tax Impact
* Cost on property tax bill based on average home with a 2014 assessed value of $364,000
LabourOther
ExpensesRevenue
Net
Expenses
Public Services 197,709$ 59,592$ (94,371)$ 162,929$ 832.94$
Plng & Infrastructure Services 65,948$ 43,192$ (21,701)$ 87,438$ 447.01$
Corporate Services 41,221$ 16,544$ (8,646)$ 49,119$ 251.11$
Brampton Public Library -$ 13,740$ -$ 13,740$ 70.24$
General Government 3,125$ 64,806$ (54,595)$ 13,336$ 68.18$
Office of Chief Operating Officer 7,111$ 2,437$ (354)$ 9,193$ 47.00$
Mayor and Council 2,509$ 525$ -$ 3,034$ 15.51$
Office of Chief Admin Officer 1,825$ 81$ -$ 1,906$ 9.74$
Hospital Levy -$ 9,833$ -$ 9,833$ 50.27$
City TOTAL 319,448$ 210,749$ (179,667)$ 350,530$ 1,792.00$
City TOTAL
2014 Budget ($ thousands) $ Cost on
Property
Tax Bill
CRP OV-1212
2015 Preliminary Operating Budget Tax Impact
Every additional $100,000 spent on City operations adds approximately 50¢ to
the average property tax bill (based on 2015 average assessed value of $381,000)
$10 million
$100,000
1% increase to the tax levy = $3.62 million
$0.50
CRP OV-13
• Maintain existing staffing levels (non-decisionablesalary and wage costs)
• Inflationary and other adjustments to reflect actual expenditure and revenue expectations
Base Operating Adjustments
$8.23 million
• Additional tax revenue from new properties added to the tax roll
Assessment Growth
($11.85 million)
• Increased contribution to capital infrastructure (1%)Infrastructure Levy
$3.62 million
• Maintain current services levels• Additional staff and resources
to respond to growth
Growth – Maintain Service Levels
$18.56 million
• New services• Improved service levels
Service – Improve Service Levels
$9.90 million
2015 Current Budget – Incremental Changes
13
Ne
t ze
ro im
pa
ct
on
ta
x le
vy
Ta
x i
mp
ac
t
CRP OV-14
2015 Budget Considerations
To achieve a zero property tax increase, services would need to be reduced and/or eliminated and no new service enhancements introduced.
• Preliminary 2015 Budget has been submitted, based on current service levels and response to growth. To achieve a zero property tax increase, the following would need consideration:
• Delayed implementation of previously-completed capital projects
• Continued delay of administrative support to growing front-line services
• Reduction or elimination of existing services
• Reduction of grants and subsidies
• Elimination or scaling back of planned new initiatives
• Increase user fees (fee for service)
CRP OV-15
2015 Business Plan and Budget
General Government
Budget Sub-CommitteeFebruary 11, 2015
CRP OV-16
Organizational Structure
Overview: General Government consists of various accounts that are not directly controllable by nor directly related to the operations of any one department.
Key accounts include:• Corporate managed accounts• City-wide initiatives• Financial accounts• Property tax accounts
CRP OV-17
Goals and Current/Future Situation
• General Government Goals
• Management of accounts that are not controlled or directly related to the operations of any one department
• Links to Corporate Excellence in the Service Plan
• Continued Financial Stability
• Current and Future Situation
• Pending collective agreements and compensation adjustments
• Need to invest in reserves to address infrastructure funding gap
• Changes in policies (e.g. community grants)
• Fluctuation in interest rates affects investment income
CRP OV-18
2014 General Government Budget
• Revenues and expenditures from the Provincial Offences Act (POA)• Municipal elections (every four years)• Subdivision administration fees
Corporate Managed Accounts
($11.2 million)
• Sports, heritage, arts and culture, community events• External agency grants
City-wide Initiatives $2.3 million
• Contributions to and from corporate reserve funds• Includes infrastructure levy, hospital levy, internal borrowing
• Investment income, interest costs, bank service charges• Compensation adjustments pending decision
Financial Accounts
$47.3 million
• Property tax levy• Supplementary taxes• Payments in lieu of taxes• Tax rebates, adjustments, allowances and write-offs
Taxes
($365.8 million)