Slide 1

Report
2014 Budget Overview
Community and Corporate Services
Committee
January 14, 2014
Context
• Burlington, Our Future:
– Vibrant Neighbourhoods
– Prosperity
– Excellence in Government
• 2012 Long Term Financial Plan (Report F-22-12)
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Competitive Property Taxes
Responsible Debt Management
Improved Reserves & Reserve Funds
Predictable Infrastructure Investment
Recognized Value for Services
Challenging Municipal Issues
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•
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Rising community expectations
Aging infrastructure
Access to new revenue sources is limited
Expectations of maintained services
Costs are rising faster than revenues
3
Making Choices
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•
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•
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Find efficiencies
Increase or implement new user fees
Optimize/rationalize service levels
Defer new initiatives
Increase investment in infrastructure
Seek new funding sources
Must be a balanced approach
4
Municipalities own Majority of Infrastructure
but Receive the Smallest Share of Tax Dollars
Source: Infrastructure Canada 2009
5
2014 Proposed Capital
• 2014:
$68 Million
• 2014-2023: $562 Million
• Capital Program Focus:
– Maintaining Existing Capital Assets
– Accommodating Growth Related Infrastructure
6
Capital Budget & Forecast
• Predictable Infrastructure Investment (Strategic
Objective #4)
– Continuing 0.5% dedicated infrastructure renewal levy
– Reallocation of funding to Shave & Pave ($500K)
• 2014 – 2023 Capital Budget & Forecast is basis for
Development Charges Study underway
7
Debt Strategy
• Responsible Debt Management (Strategic Objective
#2): Within target of 12.5%
Debt Charges as % of Net Revenue
14.0%
City's Debt policy: 12.5%
12.0%
Hospital Debt
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2002
2006
2010
2014
2018
2022
8
Current Budget
• Competitive Property Taxes (Objective # 1)
• Base budget tax change aligned with inflation: 0.89%
vs. 2.36% (Toronto’s 3-year rolling average of
Consumer Price Index)
• 10 year simulation (C&CS February 20th)
• Final year of levy increase for Joseph Brant Hospital
(JBH)
• Business Cases (EBC Recommended, Service Changes
& Additional)
9
Current Budget
• Three budget scenarios presented:
• Status Quo – 4.66% city tax increase as presented at
the December 5, 2013 Committee of Whole meeting
• EBC Recommended – balanced approach reducing the
tax impact by 0.53% to 4.13%
• Service Changes – achieves the 1.0% reduction
options as directed by Council on December 9, 2013
10
2014 BUDGET SCENARIOS
Status Quo
EBC
Recommended
Service
Changes
$128,528
$128,528
$128,528
Base Budget
$1,693
$1,149
$812
Corporate Expenditures
$1,232
$1,232
$1,232
Corporate Revenues
$188
$188
$188
Capital Investment
$716
$716
$716
$132,358
$131,813
$131,476
2.98%
2.56%
2.29%
Net Growth Commitments
$68
$68
$68
Expanded /New Business
$371
$371
$371
Local Board & Committee Requests
$355
$275
$0
$1,361
$1,361
$1,361
$134,513
$133,889
$133,233
4.66%
4.13%
3.66%
2013 City Tax Levy
Total Levy
City Tax Impact
Downloaded Services
Total Levy
Tax Impact (%)
11
EBC Recommended – Base Budget
• Human Resource Costs
• Operating & Purchased Services
• Local Boards & Committees (1.5%)
• General Revenues & Recoveries
2014
Proposed
Change
Incremental
City Tax
Impact
Cumulative
City Tax
Impact
$1,149
0.89%
0.89%
Note, all dollars are recorded in thousands
12
EBC Recommended – Corporate Expenditures
• OMERS funding ($600k)
• Increased Insurance Premiums ($300k)
• Loss due to Assessment Appeals/Vacancy Rebates
($200k)
• Miscellaneous Corporate Expenses ($132k)
2014
Proposed
Change
Incremental
City Tax
Impact
Cumulative
City Tax
Impact
$1,232
0.96%
1.85%
13
EBC Recommended – Corporate Revenues
• Reduction in Supplementary Taxes ($350k)
• Increased Investment Income ($100k)
• Other minor increases ($62k)
2014
Proposed
Change
Incremental
City Tax
Impact
Cumulative
City Tax
Impact
$188
0.15%
2.00%
14
EBC Recommended – Capital Investment
• Dedicated Infrastructure Renewal Capital Levy
(0.5% or $643k)
• Increased funding to the Vehicle Depreciation
Reserve Fund ($73k)
2014
Proposed
Change
Incremental
City Tax
Impact
Cumulative
City Tax
Impact
$716
0.56%
2.56%
15
EBC Recommended – Growth Commitments
• Haber Recreation Centre ($375k) / Alton Library ($295k)
• Transit service to Hayden Secondary School ($44k)
• Operating Costs of Water Play Features in 3 Community
Parks ($49k)
• Roads, Parks & Information Technology growth ($52k)
• Offset by Assessment Growth Revenue (0.58% or $745k)
2014
Proposed
Change
Incremental
City Tax
Impact
Cumulative
City Tax
Impact
$68
0.05%
2.61%
16
History of Weighted Assessment Growth
2.50%
2.00%
1.86%
1.64%
1.50%
1.32%
1.15%
1.01%
1.00%
0.87%
0.58%
0.50%
0.00%
2008
2009
2010
2011
2012
2013
2014
17
EBC Recommended – Expanded/New
Business
• Heritage:
• Heritage Planner ($103k)
• Heritage Burlington Requests ($103k on-going /
$64k one-time)
• Manager of Cultural Services ($128k)
• Community Gardens Program ($36k)
2014
Proposed
Change
Incremental
City Tax
Impact
Cumulative
City Tax
Impact
$371
0.29%
2.90%
18
EBC Recommended – Local Boards &
Committees Requests
• Burlington Economic Development Corporation
($275k)
2014
Proposed
Change
Incremental
City Tax
Impact
Cumulative
City Tax
Impact
$275
0.21%
3.11%
19
EBC Recommended – Downloaded Services
• Ontario 1 Call ($111k)
• School Crossing Guards ($27k)
• Assistant Supervisor School Crossing Guard
($23k)
• Final levy increase for Joseph Brant Hospital
($1.2m)
2014
Proposed
Change
Incremental
City Tax
Impact
Cumulative
City Tax
Impact
$1,361
1.06 %
4.13%
20
Proposed 2014 Tax Bill Impact
2013 City Tax Levy
Total 2014 Budget Change
Total 2014 City Tax Levy
$128,528
$6,106
$134,634
City Tax Impact
Overall Tax Impact
Tax Impact (%)
4.13%
1.68%
Tax Bill Impact ($/100,000 CVA)
$15.08
$15.08
Proposed Region of Halton = 0.0% (incl. Police)
Province of Ontario (Education) = 0.0%
Staffing Complement
FullTime
PartTime
Contract
Total
865.30
251.15
15.08
1131.53
Existing & Re-allocated
Positions
1.00
(7.39)
(2.91)
(9.30)
Business Cases
3.00
6.21
0.00
9.21
869.30
249.97
12.17
1131.44
2013 Starting Point
2014 Total
Options for Base Budget Service Reductions
(not included in 2014 EBC Recommended Budget)
• Reduce staff overtime / on-call ($-30k)
• Removing one Leaf Pick-up South of QEW ($-65k)
• Eliminating Leaf Pick-up North of QEW ($-70k)
• If both leaf pickups are eliminated ($20k)
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•
•
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Revised sidewalk snowplowing ($-27k)
Convert 10% passive parks to naturalized area ($-24k)
Eliminate enhanced maintenance of grass sportsfields ($-40k)
Reduction in Bus Cleaning contract ($-100k)
2014
Proposed
Change
Incremental
City Tax
Impact
$(337)
(0.26)%
23
Reduction Option in Growth Expenses
(not included in 2014 EBC Recommended Budget)
• Provincial Gas Tax Funding for Transit Service to
Hayden Secondary School
2014
Proposed
Change
Incremental
City Tax
Impact
$(44)
(0.03)%
24
Reduction Option for Local Boards & Committees
(not included in 2014 EBC Recommended Budget)
• No additional increase to Burlington Economic
Development Corporation
2014
Proposed
Change
Incremental
City Tax
Impact
$(275)
(0.21)%
25
Additional Items
(not included in 2014 EBC Recommended Budget)
• 4 additional firefighters ($361k)
• Cleaning of transit vehicles ($100k)
• Increase Dedicated Capital Infrastructure Renewal Levy
(0.75% or $964k)
• Community Development Halton ($86k)
• Sound of Music ($44k)
• Museums’ Special Events Assistant ($36k)
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Additional Items Cont’d
• Restore Transit Resources ($1.0m - $2.8m)
• Increased Storm Response - Trees ($747k)
• Increased Storm Response – Sidewalks
($1,452k)
• Phase-in OMERS ($-100k + $-100 one-time)
• Extended Hospital Levy over 2014/2015 ($300k)
27
City Revenues
Property tax is the single largest source of revenue to
fund City services
Dept. Revenues
& Recoveries
[$-49.1]
Provincial
23.5%
Grants
[$-5.0]
2.4%
Other
Corporate
Revenues
[$-20.3]
9.7%
Net Tax Levy
[$-134.6]
64.4%
28
Property Taxes Are Competitive
2013 Residential Comparison – Detached Bungalow –
by Location
5,000
4,000
3,000
2,000
1,000
-
Source: BMA 2013 Study
29
Property Taxes As a % of Household
Income
5.0%
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Source: BMA 2013 Study
30
Comparing 2014 Municipal Tax Changes
Region of Halton*
0.0%
Approved
Burlington
4.13%
Proposed
Halton Hills
4.9%
Proposed
Milton
3.5%
Approved
Oakville
2.11%
Approved
* Excludes Rate Budget
31
Burlington’s Portion of the Property Tax Bill
• Property tax bill made up of 3 components – City, Region,
Province (education)
• City receives $0.42 per $1.00 residential property tax (incl.
hospital levy)
Halton
Region
36.2%
Boards of
Education
22.1%
City of
Burlington
41.7%
2014 City Property Tax =
$380.13 / $100,000
assessment
32
What does a Taxpayer Receive for
their City Taxes?
Proposed city taxes are $380.13 per $100,000 of
assessment, which provide:
Fire Protection - $73.05
Planning, Building & Engineering - $15.34
Capital Funding - $72.01
Contribution to JBH - $13.49
Roads & Parks Maintenance - $58.01
Mayor & Council - $4.05
Corporate Departments - $53.22
Transportation - $3.02
Boards & Committees - $39.18
School Crossing Guards - $2.63
Parks & Recreational Services - $30.75
Corporate Expenses / Revenues - $(10.17)
Transit - $25.55
33
Average CVA for all Residential Dwelling
Units within the Residential Property Class
Year
2012
Average
Assessment
$373,300
2013
$393,240
2014
$410,860
34
Council Term City Taxes Increases
City
JBH
Total
2011
0.91%
0.00%
0.91%
2012
2.26%
1.03%
3.29%
2013
3.46%
1.00%
4.46%
Sub-total
6.63%
2.03%
8.66%
2014 Proposed
3.20%
0.93%
4.13%
Total
9.83%
2.96%
12.79%
35
2011 Community Survey
Citizen Satisfaction With Burlington:
98%
95%
Consider the city to be an excellent, very good or
good place to live
Are either very or somewhat satisfied with the
overall quality of services provided
Dealing with Increased Costs:
47%
Increase user fees to keep the same levels of service
28%
Reduce levels of service with no increase in user
fees or taxes
36
Getting Ready for 2015 Budget
• Service Based Budgets
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Service Portfolio
Business Process Mapping
Results Based Accountability
Business Plans
Business Cases
• Updated Financial Health Report (New Council)
37
Upcoming Reports
• Restore Transit Resources
• Increased Storm Response:
• Trees
• Sidewalks
• Consolidated Budget Action Request Forms:
• Capital
• Current
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Upcoming Reports Cont’d
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•
•
•
2013 Retained Savings Disposition
2014 – 2023 Multi-Year Simulation
Financial Status Report as at December 31, 2013
Current Budget Performance Report (Dec.31.13)
39
Public Involvement
• Inform
– www.burlington.ca
– January 2014 reports
• Consult
– City-wide Budget meeting January 29, 2014 at the
Burlington Art Centre
– Burlington Chamber of Commerce – Jan.31.14
– Ward 4 – Feb.06.14
40
Key Dates for Members of Council
January 21
Capital Budget Council Information Session
January 29
Public Budget Consultation
January 31
Capital Budget Action Request Forms due
February 6
Current Budget Council Information Session
February 11
Capital Budget Review & Approval at C&CS Committee
February 12
Current Budget Action Request Forms due
February 13
Delegations on the 2014 Current Budget
February 18
Council Approval of the Capital Budget
February 20
Current Budget Review & Approval at C&CS Committee
February 20
Council Approval of the Current Budget (Special Meeting)
41
Questions?

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