Niagara Region 2011 Budget January 13, 2011 Budget Review Committee of the Whole 1
Agenda 1. Overview of Niagara Region’s Budget Process 2. Public Engagement Session – November 18, 2010 3. Operating Budget 4. Capital Budget 5. Police Budget Presentation 2
Introduce Players • Mike Trojan, Chief Administration Officer • Brian Hutchings, Commissioner of Corporate Services • Jurgen Dirks, Treasurer/Director, Financial Management and Planning • Margaret Murphy, Associate Director, Operating & Capital Budgets • Patrick Robson, Commissioner, Integrated Community Planning • Cathy Cousins, Acting Commissioner Community Services • Dr. Robin Williams, Commissioner of Public Health • Ken Brothers, Commissioner of Public Works • Lora Beckwith, General Manager, Niagara Regional Housing • Tony D’Amario, CAO/Secretary-Treasurer, Niagara Peninsula Conservation Authority • Tim Clutterbuck, Interim Chief Executive Officer, Niagara Economic Development Corporation • Wendy Southall, Chief of Police, Niagara Regional Police Service 3
Regional Council Niagara Peninsula Conservation Authority Police Services Board Niagara Economic Development Corporation Niagara Regional Housing Regional Chair Corporate Services Integrated Community Public Health and Social Public Works Committee Committee Planning Committee Services Committee Chief Administrative Officer Commissioner of Integrated Commissioner of Community Community Planning Services Commissioner of Corporate Medical Officer of Health Service Commissioner of Public Works 4
Property Taxes in Niagara Region Niagara Region property taxes fund services in your community (Regional Levy = $282M) Your property taxes are divided into three areas: Niagara Region Local City / Town School Board / Education 5
How the budget works Niagara Region's budget has two components, the operating budget ($862M), which is similar to your day-to-day costs like gas, groceries or phone bill and the capital budget ($132M) which is like your longer-term investments, similar to your car or house. 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. 6
Budget Schedule ITEM: TIMING: Budget Approval : To First Quarter accommodate local municipalities Capital Budget As soon as possible Water and Wastewater : To First Quarter accommodate local municipalities 7
Operating Budget Flow Chart Guideline •BRCOTW – develop budget guidance target Development & Approval •Council May/June •Budget development by departments, Boards, Commissions(in Budget collaboration with Corporate Services) and submission to Development September Corporate Services Corporate •Review alignment with target and undertake compliance Services testing October •Agencies/Board/Heads Budget Review •CMT: review budget submissions October/Nov •Committee: recommendation to BRCOTW •BRCOTW - approval Budget Approval •Council December/Jan 8
Process to date (Internal) Meeting Dates Topic/Discussion BRCOTW July 2010 2011 budget guidance September Council update 2010 July – October Departments develop budgets 2010 CMT & ABC Between May 11 CMT budget meetings held leads & December 2010 9
2011 Budget Process Meeting Dates Topic / Discussion Regional Council July 15, 2010 2011 budget guidance approved 1.4% Budget Review Committee of the September 16, 2010 Update of 2011 known impacts, risk,& opportunities Whole and overview of public engagement process Public Engagement #1 November 18, 2010 Niagara Region overview + Q&A session Public Engagement #2 November 24, 2010 Water and Wastewater Open House Budget Review Committee of the January 13, 2011 Budget discussion Whole (Public participation meeting) •Operating background context, Capital Budget, Police Budget Budget Review Committee of the January 27, 2011 Budget discussion Whole (Public participation meeting) •Operating budget detail •Capital budget detail •Water/Wastewater background Standing Committees February 1 & 2 Review department budgets – operating and capital Public Engagement #3 February 9 , 2011 Review draft budgets – public consultation Budget Review Committee of the February 17, 2011 Approval of Water and Wastewater rates Whole (Public participation meeting) Budget Review Committee of the February 24, 2011 Proposed Budget discussion Whole (Public participation meeting) •Operating budget details •Capital budget approval Budget Review Committee of the March 10, 2011 Operating Budget approval Whole (Public participation meeting) 10
Taxpayer Affordability and Accountability 11
Budget Affordability and Accountability • Affordability – Levy should increase no more than taxpayers income growth and assessment growth combined • Accountability – Responsible budgets should be transparent, accessible and easily understood, and respectful to the taxpayer 12
Taxpayer Affordability After Tax Income Property Taxes & Rate Programs Consumption Taxes Income & Employment Taxes $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 6.0% 6.0% 6.2% 6.0% 5.5% 6.2% $20,000 $10,000 $0 2004 2005 2006 2007 2008 2009 *Source – Median total income by family obtained from Statistics Canada (St. Catharines- Niagara (ON)) CMA 13
Niagara’s Tax Increases 8% 7% 2002-2007 2003-2008 6% 2004-2009 5% 2005-2010 4% 2006-2011 3% 2% 1% 0% 2007 2008 2009 2010 2011 Five year rolling average Regional Increase 14
Niagara’s Taxpayer Affordability 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2007 2008 2009 2010 Assessment Growth Taxpayer Income Growth Assessment & Income Growth guidance 15
8% 7% 6% 5% 4% 3% 2% 1% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -1% Ten year historical tax levy after assessment growth % increase 16
Ontario Works Caseloads 12,000 10,000 8,000 6,000 4,000 2,000 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: OW CMSM Expenditure Report 17
Affordable Housing Waiting List 6,000 5,000 4,000 3,000 2,000 1,000 - 2003 2004 2005 2006 2007 2008 2009 2010 Close to 10,000 people (5,456 households) are on the affordable housing waiting list. A 45% increase in waiting list since 2002 - 27% increase in the last three years 18
Unemployment Rates 12% 10% Canada 8% Ontario Niagara 6% 4% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Statistics Canada 19
Building Permit Values 900 Millions (millions) 800 700 600 500 400 300 200 100 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Agricultural & residential Business & commercial Industrial Government & institutional Source: Building Permit Values 20
Housing Starts 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: CMHC Housing Observer 21
Public Engagement Session November 18, 2010 • Approximately 50 members of the public attended and 147 viewed the web stream • Results: Top priorities for future public consultation in Niagara, include : – Hold special meetings where members of the public can present their ideas on the budget for Council’s consideration – more briefing sessions held in locations throughout the region – have sessions available online for people to watch, ask questions and provide input 22
2011 Operating Budget 23
2010 Budget 2010 2010 Gross Net Description Expenditure Expenditure Regional Departments 495,737,714 134,872,749 Non-Dept Expenses 16,717,023 16,337,023 Outside Boards & Agencies 196,681,618 152,734,786 Total Revenue Source - (21,549,859) Tax Levy Impact (Full Levy) 709,136,355 282,549,699 Self Supporting – Requisitions SS Wastewater 61,391,169 59,391,038 SS Water 44,541,100 42,018,284 SS Waste 47,141,508 33,122,337 153,073,777 134,531,659 Tax Levy Impact & Self Supporting 862,210,132 417,081,358 Requisitions 24
Actual to Budget Final Actual Surplus Approved Net Expenditure Surplus/(Deficit) Levy $ % December 31, 2008 273.6 M 255.2M 18.4M 6.7% December 31, 2009 280.2 M 270.3 M 9.9M 3.5% Change in levy compared to prior year levy 2.4% Change in levy compared to prior year actual net expenditure (levy less surplus) 9.8% Change in gross budget expenditure compared to prior year actual gross budget expenditures 2.3% December 31, 2010 282.6 M Change in levy compared to prior year levy 0.8% Change in levy compared to prior year actual net expenditure (levy less surplus) 4.5% Change in gross budget expenditure compared to prior year actual gross budget expenditures 2.4% 25
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