CITY OF BRAMPTON Tools and...Note: A 4.1% tax increase on the City portion of the residential tax...

CITY OF BRAMPTON

2011 Budget HighlightsAs Approved by City Council on February 23, 2011

EXEXCUTIVE SUMMARY

� The current economic climate, meeting provincial growth

targets and other budget drivers places a significant strain on

the City’s finances and revenue streams

� To address these issues, we have curtailed spending where � To address these issues, we have curtailed spending where

possible and deferred implementing new programs

� Our goal is to insulate taxpayers while maintaining service

levels and preserving the City’s physical assets

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WHERE YOUR TAXES GO

55%

8%

3

35%8%

2%

Province Federal Municipal Education

TWO TIERED SERVICE DELIVERY APPROACHRegion of PeelTax Supported

Police (including 911)

Conservation Authorities

Public Health Programs

Social Assistance, Employment Supports

Homelessness & Community Grants

Early Learning and Childcare

Long Term Care

Area Municipality - BramptonTax Supported

Fire and Emergency

Transit

Parks Maintenance

Recreation Facilities and Programs

Arts and Culture*

Libraries

Provincial Offences Court

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Long Term Care

Waste Management

Roads and Traffic*

Planning*

Development Services

Social Housing

Paramedic Services/Ambulance

Accessible Transportation

Assessment Services

Heritage, Arts & Culture*

Utility Rate Supported

Water

Wastewater

Conservation Authorities

Provincial Offences Court

Local and Arterial Roads

Bridges and Watercourse

Storm Sewers

Winter maintenance*

Municipal Planning and Zoning*

Building Controls and Inspection

Tax Collection

*Shared services

2011 BUDGET CONTEXTEconomic Conditions

• National economy – improving but still uncertain

• Federal / Provincial stimulus ending

• Interest rate uncertainty

• Peel and Brampton local economy – employment improving, • Peel and Brampton local economy – employment improving,

not yet back to peak

• Brampton building permits 2nd highest in GTA but still below

2008 level and 4,500 benchmark

• Impact of slower development in 2008-09 on assessment

growth still to come

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2011 BUDGET CONTEXTFinancial Capacity

� Mandate as a high growth municipality drives spending

priorities

• Population to grow by 43% over 20 years

• Need to ensure growth pays for growth• Need to ensure growth pays for growth

• Goal is to have infrastructure in place in advance of

development

• New infrastructure drives future operating expenses

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2011 BUDGET CONTEXT Infrastructure Deficit – 2011 Funding Gap

FUNDED

R&R CAPITAL

$45M

36%

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UNFUNDED

R&R CAPITAL

$80M

64%

2011 2011-2020

Requirement $125M $887M

Funded $45M $530M

Unfunded $80M $357M

2011 BUDGET OBJECTIVES

� Maintain priority service levels

� Ensure continued value for money in the provision of all City

services

� Target limited capital funds to support managed development� Target limited capital funds to support managed development

� Phase service expansion for transit and implement a modest

transit fare increase (25 cents)

� Leverage Federal Gas Tax revenues

� Resume addressing the infrastructure deficit

� Set foundation for a sustainable capital funding strategy

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2011 BUDGET OBJECTIVESFocus on Existing Services

� 3,180 Lane kilometres of road

� 4,977 Acres of parkland (including sports fields, playgrounds,

boulevards and buffers, pathways and trails, flowers and

shrub beds)shrub beds)

� 73 Corporate buildings (including corporate, parks, transit,

works, and libraries)

� 67 Recreation and community facilities including arenas,

pools, theatres, etc.

� 12 Fire stations

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2011 BUDGET PLANReduction Measures

� No salary increase for staff other than cost of living

� Hire essential staff only

� Absorb cost of inflation and HST on goods and services

� Reduce administrative expenditures (e.g. travel, training, � Reduce administrative expenditures (e.g. travel, training,

advertising etc.)

� Defer capital maintenance

� Delay the introduction of programs

� Focus on core Library services

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2011 BUDGET PLAN: Current BudgetService Improvements

� Züm service delivery

� Mount Pleasant library and facilities

� Corporate and recreation facilities, roads, and new parks developmentdevelopment

� Provision for Integrity Commissioner

� Creative economy plan (HACE)

� International business development

� Seniors fare reduction (Ride for a ‘Loonie’)

� Pledge to Peel Memorial Hospital redevelopment

� 1% Dedicated Infrastructure levy

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2011 BUDGET PLAN: Current Budget

2010 2011

Budget Budget Variance

Expenditures $408.2 $429.5 $ 21.3

Revenues ($408.2) ($418.6) ($10.4)

Net $ 0.0 $10.9 $ 10.9

Total Tax levy $ 264.2 $ 275.1

� Since the City cannot budget for a deficit, net revenue shortfall of $10.9M to be funded from increase in tax levy

� 1% tax levy increase generates $2.6 million

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2011 BUDGET PLAN: Current BudgetTotal Residential Tax Bill ($3,799)

Taxes Paid to Each Level of Government by Ontario Residents

55%

Components of Average

Residential Tax Bill*

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40%

$1,527

40%

$1,526

20%

$746

Region City Education

35%8%

2%

Province Federal Municipal Education

*Average residential assessment of $320,000

1% budget increase = $2.6M

2011 BUDGET PLAN: Current BudgetApproved Budget Increase

Base Budget Requirements 2.9%

Budget Committee Recommendations

Seniors Fare reduction - Ride for a ‘Loonie’ $560KSeniors Fare reduction - Ride for a ‘Loonie’ $560K

Brampton Downtown Development Corp $4K

Pledge for Peel Memorial Hospital $1

Subtotal 3.1%

Dedicated Infrastructure Levy 1.0%

Total Approved Budget Increase 4.1%

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2011 BUDGET PLAN: Current BudgetApproved Budget Increase

� 4.1%, equivalent to $61 on the City’s portion of the average

residential tax bill

� In combination with a 2.5% Region Budget increase and � In combination with a 2.5% Region Budget increase and

assuming no change in the Education tax, the combined tax

bill would rise by 2.6%

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2010

TAX BILL

% BUDGET

INCREASE

2011

TAX BILL*

$ CHANGE % CHANGE

IN TOTAL

CITY $1,465 4.1% $1,526 $61 1.6%

REGION $1,489 2.5% $1,527 $37 1.0%

EDUCATION $746 tbd $746 tbd tbd

TOTAL $3,701 $3,799 $98 2.6%

Note: A 4.1% tax increase on the City portion of the residential tax bill translates into a 1.6% tax increase or $61 (approx.) on the total residential tax bill

* Based on average residential assessment value of $320,000

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City: $1,526

Region: $1,527

Education: $746

Annual Taxes: $3,799

2011 BUDGET PLAN: Current BudgetIncrease in Typical Residential Tax Bills – City Portion

Single Family Detached ($365,000) $69

Semi Detached ($270,000) $51

Freehold Townhouse ($252,000) $48Freehold Townhouse ($252,000) $48

Condominium ($191,000) $36

Average Residential ($320,000) $61

$19 increase per $100,000 of residential assessment (approximate)

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2011 BUDGET PLAN: Current BudgetResidential Tax Comparisons – Municipalities

SINGLE DETACHED(1)

Markham $4,311 Vaughan $3,884Oshawa $3,848Whitby $3,582

SENIOR EXECUTIVE (2)

Oshawa $5,859 Hamilton $5,792Markham $5,577Burlington $5,548Whitby $3,582

Hamilton $3,540Mississauga $3,495Brampton $3,352Richmond Hill $3,202Oakville $3,200Burlington $3,124

Burlington $5,548Whitby $5,459 Oakville $5,412Vaughan $5,367Richmond Hill $5,214Mississauga $5,015Brampton $5,012

1. 3 Bedroom, 1200 sqft 2. 4-5 Bedroom, 3000 sqft

Source: BMA Management Consulting Inc. (2010)

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2011 BUDGET PLAN: Current BudgetDistribution of 2011 Tax Bill – City Portion Only of $1,526 is distributed as follows:

$56.01

$91.35

$117.95

$143.97

$260.38

$269.43

$349.44

FLEET SERVICES

BRAMPTON PUBLIC LIBRARY

RECREATION FACILITIES

PARKS OPERATIONS

WORKS & TRANS OPERATIONS

TRANSIT

FIRE AND EMERGENCY SERVICES

Based on average house with an assessed value of $320,000. Total property tax bill is $3,799.

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$3.66

$12.48

$13.27

$16.56

$35.43

$35.45

$36.55

$41.92

$42.15

$56.01

EMERGENCY PREPAREDNESS

BUILDING DESIGN & CONSTRUCTION

ANIMAL SERVICES

ENGINEERING & CONSTRUCTION

THEATRES

COMMUNITY DEVELOPMENT & SERVICE PLANNING

PLANNING, DESIGN AND DEVELOPMENT

BY-LAW ENFORCEMENT

ECONOMIC DEVELOPMENT AND COMM.

FLEET SERVICES

2011 BUDGET PLAN: Capital BudgetCapital Budget Priorities

� Responsible growth management: infrastructure required in

advance of development (road network)

� Transit

� Recreation facilities� Recreation facilities

� Libraries

� Fire Station upgrades

� Infrastructure replacement/maintenance

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2011 BUDGET PLAN: Capital Budget

Capital Budget by Program - 2011

BUILDINGS AND

PROPERTY

MANAGEMENT

2.2%

FIRE AND

EMERGENCY

SERVICES

1.8%

PARKS AND

RECREATION

20.4%

FINANCIAL AND

INFORMATION

SERVICES

4.2%PLANNING, DESIGN

AND DEVELOPMENT

0.8%

TRANSIT

BRAMPTON PUBLIC

LIBRARY

1.1%

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TRANSIT

15.97%

PUBLIC WORKS

53.5%

OTHER

DEPARTMENTS

0.03%

1.1%

2011 BUDGET PLAN: Capital BudgetBudget by Funding Source

Internal Borrowing

11.5%

Federal / Provincial

Subsidies*

28.9%

External Recoveries

8.1%Other funding

8.8%

Development Charge

Reserve Funds

38.5%

10% Non

Development Charge

Requirement

1.2%

Tax Based Capital

Contributions

5.6%

Brampton Public

Library

0.7%

*Federal and Provincial subsidies account for a significant portion of 2011 Capital funding due to the rate of

expenditure on Zum rapid transit service

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2011 BUDGET PLAN: Capital BudgetCurrent Year Capital Projects

� Roads

• Chinguacousy Road widening (Steeles to Major William Sharpe)

• Cottrelle Blvd (Humberwest to Goreway)

• Creditview reconstruction (North/South Spine Road to Farhill)• Creditview reconstruction (North/South Spine Road to Farhill)

• Wanless Drive widening / reconstruction (Creditview to

Chinguacousy)

• Ebenezer Road Widening (Gore Road to Clarkway Valley)

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� New facility and park development

• Bram East Community Parkland Campus

• Sesquicentennial City Wide parkland purchase

• Additional funding for neighbourhood parks and valleyland• Additional funding for neighbourhood parks and valleyland

development

� New Works Yards (additional funding)

� Transit: Züm service and conventional growth

� Library collection development

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� Repair and replacement

• Road resurfacing

• Stormwater pond maintenance

Corporate buildings• Corporate buildings

• Indoor and outdoor recreation facilities

• Energy systems

• Fleet equipment

• Information Technology infrastructure

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