Region of Peel BMO Canadian Fixed Income Conference May 1 & 2, 2018 Spring 2018 1
Meet the Region of Peel Table of Contents Who we are ……… 2 Economy ………… 5 Finances ………… 14 Debt Issuance ….. 27 Spring 2018 Who we are Economy Finances Debt Issuance 2 2
Responsibilities Member Member Infrastructure Peel Services Peel Munis* Munis* Water Police Wastewater (Sewer) Paramedics Fire Storm Water Transit Roads (Arterial) Public Health Roads (Local) Long-Term Care Waste Collection & Disposal Social Assistance Parks & Recreation Social Housing * Member Municipalities include the Cities of Mississauga and Brampton, and the Town of Caledon Children’s Services Debt Issuance Libraries Licensing Economic Development Planning & Development Parking Spring 2018 Who we are Economy Finances Debt Issuance 3
Governance Peel Region is governed by the Regional Chair and 24 other members of Council comprised of the Mayors and Councillors from Mississauga, Brampton and Caledon Regional Chair Members of Regional Council (25) Regional Chair (1) Mayors of Mississauga, Brampton, Caledon (3) Councillors representing City of Mississauga (11) Councillors representing City of Brampton (6) Councillors representing Town of Caledon (4) Executive Leadership Team (7 ) Chief Administrative Officer; Commissioner, Finance & Chief Financial Officer; Commissioner, Corporate Services; Commissioner, Digital & Information Services; Commissioner, Health Services; Commissioner, Human Services; Commissioner, Public Works. Spring 2018 Who we are Economy Finances Debt Issuance 4 4
Peel’s Strategic Advantages Location Situated in GTA, largest economic hub in Canada Close to large US market (within 200 km / 120 miles) Transportation network Five major highways Toronto’s Pearson Int’l Airport Regional, national & international rail Young and well educated population Peel’s median age of 38.1 years is lowest in GTA (2016 census) 65% of Peel’s working age population have a post- secondary certificate, diploma or degree (2016 census) Spring 2018 Who we are Economy Finances Debt Issuance 5
Strong Population Growth 1.48 million residents in 2017, 2 nd largest in GTA & Ontario, 4 th largest in Canada An estimated 32,147 new residents (2016 – 2017) Future population forecasted to reach 1.77 million by 2031 Future population forecasted to reach almost 2 million by 2041 Peel Region Population Growth Peel Region Population Share 2.5 Caledon 5% 2.0 Brampton 44% 1.97 1.77 1.5 Millions 1.56 1.48 1.48 1.36 million 1.0 (2017) 0.5 0.0 Mississauga 51% 2011 2017 2021F 2031F 2041F Spring 2018 Who we are Economy Finances Debt Issuance 6
Labour Market Conditions Strong labour market performance in 2017 Total labour force increased by 2.1% to remain strong at 873,000 persons Employment at 812,500 positions, up 2.5% Unemployment rate fell to 6.9% in 2017 Employment growth was broad-based Employed Labour Force Unemployment Rate 10% Goods Producing Services All Industries 900 8.9% 812.5 793 8% 800 755 8.1% 7.7% 700 7.3% 624 6.9% 604 604 616 614 6% 600 Thousands 481 487 500 4% 400 300 169 2% 200 171.2 151 135 127 100 0 0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Source: Statistics Canada and Peel Data Centre Spring 2018 Who we are Economy Finances Debt Issuance 7
Diversified Labour Market 812,500 strong employed labour force in Peel in 2017 Peel’s well -diversified labour market supports a resilient economy Labour Market Breakdown by Sector – 2017 18.2% Trade 15.1% Manufacturing and other Goods Producing 9.7% Transportation and Warehousing 9.4% Health Care and Social Assistance 8.9% Finance, Insurance, Real Estate and Leasing 8.5% Professional, Scientific and Technical Services 6.0% Construction 5.1% Educational Services 5.0% Business, Building and Other Support Services 5.0% Accommodation and Food Services 3.7% Other Services 2.8% Information, Culture and Recreation 2.6% Public Administration % 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Source: Statistics Canada Spring 2018 Who we are Economy Finances Debt Issuance 8
Household Income Peel at almost $76,000 in median Median Household Income (After-Tax) after-tax household income is about: 90 10% higher than Toronto CMA median and 75 76 25% higher than the national 69 65 60 61 median Thousands 45 30 15 0 Canada Ontario Toronto CMA Peel Source: Statistics Canada, Census of Canada, 2016 Spring 2018 Who we are Economy Finances Debt Issuance 9 9
Growing Business Sector Approximately 717,000 jobs in Region of Peel Employment Forecast Peel in 2017 1000 An estimated 34,000 new jobs 870 800 in 2017, up 5.0% from 2016 766 717 600 646 ’000 530 400 200 0 2001 2011 2017 2021F 2031F Source: Statistics Canada and Draft Growth Management ROPA – Oct 2017 Allocation Spring 2018 Who we are Economy Finances Debt Issuance 10 10
Diversified Business Sector - 2017 Peel’s business sector is broadly diversified Business growth has been led by the Transportation & Warehousing sector Distribution of Business Sectors in Peel Region - 2017 Transportation & Warehousing 20.0% 19.8% Financial, Insurance, Real Estate & Leasing Professional, Scientific & Technical Services 14.8% Trade 10.3% Construction 9.5% Other Services 6.7% Management, Administrative & Other Support 5.4% Healthcare & Social Assistance 5.0% Manufacturing and Other Goods-Producing 3.8% Accommodation and Food Services 2.6% Information & Culture 1.1% Educational Services 1.0% % 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Source: Statistics Canada, Canadian Business Patterns Spring 2018 Who we are Economy Finances Debt Issuance 11
Strong Business Sector Strong and growing business sector Business Establishments by Category The largest employers in Peel Goods Producing Services 160 include Royal Bank (RBC) Financial 140 Group, Suncor Energy, Rogers 120 Communications, and Hewlett- 100 Packard (Canada) Ltd '000 80 124.3 117.1 113.9 108.4 With strong location and 60 infrastructure advantages, Peel will 40 continue to be an attractive 20 destination for businesses 19.2 17.7 18.2 18.7 0 2014 2015 2016 2017 New University approved for Brampton Source: Statistics Canada and Peel Data Centre Spring 2018 Who we are Economy Finances Debt Issuance 12
Housing Market A total of 6,739 residential housing starts in Peel in 2017 Building permit issuance at $2.8 billion Building Permits Issued Housing Starts Residential Non-residential 10,000 5.0 4.5 8,000 4.0 8,100 1.48 3.5 6,739 $ Billions 6,000 6,298 Units 3.0 1.32 5,362 1.48 4,000 4,607 2.5 1.09 2.0 2.14 1.16 2,000 2.40 2.14 1.5 1.65 1.45 1.0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Source: Statistics Canada and Peel Data Centre Spring 2018 Who we are Economy Finances Debt Issuance 13
Sustained Growth in Assessment Peel’s total assessment base Taxable Assessment 2008-2018 continues to grow at a healthy pace Residential & Farm Commercial & Industrial Both residential and non-residential 300 sectors contribute to growth 250 Peel region represents about 10% 53 50 200 of the Province of Ontario’s 46 $ Billions assessment base for property taxes 150 100 205 190 173 50 0 2008 2013 2018 Source: Municipal Property Assessment Corporation Spring 2018 Who we are Economy Finances Debt Issuance 14
Planning Financial Sustainability Council and Management Actions Long-term Financial Planning Strategy Includes 10 year operating budget model Commitment to funding infrastructure replacement from reserves Tax: 1% average annual increase for State of Good Repair reserves since 2008 Water/wastewater: 4% average annual increase for SOGR reserves since 2009 Commitment to integrated Growth Management Creation of Growth Management Committee overseeing land use planning, master services planning and DCs for 2041 growth forecasts Includes earlier and more integrated consultation with area municipalities and develop community in part to minimize debt Term of Council Priority Development Charges (DC) By-law updated in 2015 Collection of residential DCs for hard services (97% of DC rate) at subdivision approval expected to offset $100 million in borrowing Cash Management Strategy adopted Spring 2018 Who we are Economy Finances Debt Issuance 15
Budgets and Borrowing Debt can only be issued for capital 2018 Total Budget $3.1 Billion (Gross) Operating Capital $177 Water Wastewater $134 Transportation/Roads Police $286 Other $54 $72 OPERATING BUDGET $2,374 (77%) CAPITAL BUDGET $723 (23%) $ millions Spring 2018 Who we are Economy Finances Debt Issuance 16
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