The Regional Municipality of Durham 2020 Business Plans and Budgets Property Tax Requirements Finance and Administration Committee – February 11, 2020
Agenda Overview • 2019 Accomplishments • 2020 Budget Guideline and Budget Priorities • Public Engagement • Property Tax Considerations Financial Overview • 2020 Proposed Gross Budget • Regional Assets • 2020 Major Capital Budget and Forecast • 2020 Base Pressures • Line-by-Line Review • Use of Reserves and Reserve Funds • Provincial Funding Impacts Budget Overview • Budget Overview • Future Budget Pressures Summary • Risks and Uncertainties • 2020 Regional Property Tax Impacts • Conclusion February 11, 2020 Presentation to Finance and Administration Committee Slide 2
2019 Accomplishments Corporate Modernization and Continuous Improvement Initiatives Primary Care Outreach Program February 11, 2020 Presentation to Finance and Administration Committee Slide 3
2020 Guideline and Budget Priorities Focus on Front Line Service Overall Property Tax • Impact Delivery 2.20% Key Budget Priorities: • $59 budgetary increase for • Respond to growth and average residential property owner affordability pressures and support the vulnerable sector (20 2020 20 CVA $4 $483,100 100) • Innovate and modernize Transit Police operations and administration 4.4% 3.2% • Accommodate ongoing legislative and regulatory changes Conservation Authorities 2.5% operating • Invest in infrastructure renewal 1.5% special benefiting February 11, 2020 Presentation to Finance and Administration Committee Slide 4 Slide 1
Public Engagement Enhanced Public Engagement for 2020 Budget: Two Budget Open Houses • Two Drop-in Sessions • Enhancements to Region website • Opportunity for the public to submit comments/questions • Increased promotion • Created brand identity • Staff will continue to expand and enhance public engagement and education in advance of the 2021 budget February 11, 2020 Presentation to Finance and Administration Committee Slide 5
Assessment Growth 2020 Seaton Growth Ensure continued financial sustainability by matching required Regional • operations expenditures with assessment growth Estimated 2020 assessment growth related to Seaton is 0.17% • February 11, 2020 Presentation to Finance and Administration Committee Slide 6
Assessment Base Composition Declining Non-Residential Share of Regional Taxation Non-Residential Share of Regional Taxation Ongoing Risks for Non-Residential Assessment Outstanding and future assessment appeals • Assessment/taxation policy changes by Province • Impacts of the New Economy • Decline of manufacturing sector • Retail shift away from bricks and mortar • Future report to F&A • February 11, 2020 Presentation to Finance and Administration Committee Slide 7
Assessment at Risk Assessment Review Board (ARB) Estimated Regional Property Tax Loss as a Share of Total Regional Taxes 2006 - 2019 Risk of Non-Residential Appeals at the ARB Regional losses for ARB settled disputes over the four CVA cycles is $34.2 • million Estimated Regional losses on outstanding ARB disputes is an additional • $24.9 million under the medium risk scenario (high risk $29.3 million; low risk $19.9 million) February 11, 2020 Presentation to Finance and Administration Committee Slide 8
2020 Regional Reassessment Impacts 2020 Reassessment Impact Average Residential Home $7 (0.3%) 2016 reassessment (2017-2020) showed higher degree of variability • amongst properties especially within the residential class 2019 Reassessment being conducted by MPAC • January 1, 2019 valuation date • Phase-in over 2021 – 2024 tax years • Durham residential notices expected in May • February 11, 2020 Presentation to Finance and Administration Committee Slide 9
Regional Property Tax Supported Budget February 11, 2020 Presentation to Finance and Administration Committee Slide 10
2020 Regional Property Taxes – Average Home Durham Regional Police Service Social Services Roads & Bridges Durham Region Transit Planning, Economic Development & The average single detached home in Administration Solid Waste Durham, with a 2020 CVA of $483,100 Management will pay approximately $233 per month, Region of Durham or $2,797 annually, for Regional Paramedic Services property tax supported services. External Agencies The 2020 proposed Regional budget Public Health increase is 2.20%, $59 ($5 monthly) for an average single detached home. Infrastructure Renewal Other February 11, 2020 Presentation to Finance and Administration Committee Slide 11
Regional Assets 2018 Year End Asset Replacement Value ($14.54 billion) Investment/Household $21,200 Investment/Household $19,000 Investment/Household $15,370 Investment/Household $5,130 Investment/Household $1,490 February 11, 2020 Presentation to Finance and Administration Committee Slide 12
Major Capital Budget and Forecast ($ millions) NOTES: Does not include ICIP projects which are subject to Senior Government • and Regional Council approval. Final approval of the 2020 Long Term Organic Management Plan project • and financing are subject to further reports to Council. Other Financing includes $16.3 million from the Capital Project Reserve • and $2.0 million from the Capital Impact Stabilization Reserve Fund. February 11, 2020 Presentation to Finance and Administration Committee Slide 13
2020 Base Pressures The 2020 Budget includes base and non- discretionary items that are required to deliver the Region’s existing programs and services including: Annualization of 2019 budget decisions Removal of one-time items Contractual and inflationary adjustments Economic increases February 11, 2020 Presentation to Finance and Administration Committee Slide 14
Line-By-Line Review $4.1 .1 milli lion on in savings identified – a reduction of 0.6% .6% of the tax levy February 11, 2020 Presentation to Finance and Administration Committee Slide 15
Use of Reserves and Reserve Funds Effe fecti ctive ve Utilizatio ization n of Reserve ves s and Reserve ve Funds February 11, 2020 Presentation to Finance and Administration Committee Slide 16
2020 Preliminary Provincial Funding Impacts ➢ Uncertainty ➢ Funding reductions, changes in funding models, and potential downloading Children’s Services – $2,446,000 Social Assistance – $609,000 Paramedic Services – $370,000 Public Health – $46,000 Planning – Smart Commute Program – $90,000 Social Housing - unknown $3.6 .6 milli lion on in provincial funding reductions – 0.53 .53% increase in the tax levy February 11, 2020 Presentation to Finance and Administration Committee Slide 17
Comprehensive Master Implement Low Increase LTC Home Front Line Increased Funding for Housing Strategy and Resources – Implementation Income Seniors Homelessness Prevention DRLHC Portfolio Review of BehaviouralSupport Dental Program Transitional Unit 12 New Paramedics and a New Continuation of Incident Pilot/Implement Transit 24-Hour Ambulance Response Unit in Evening Fare Incentives Respond to Growth and Affordability Pressures and Support the Vulnerable Sector Optimize Transit Services and Invest Ongoing Funding to in Bus Rapid Transit Expansion Victim Support Services Invest in New Equipment and Facilities to Respond to Growth Ongoing Work on Comprehensive Development of DRT Strategic Plan Pressures Review of Durham Official Plan and Simcoe Street Rapid Transit Study February 11, 2020 Presentation to Finance and Administration Committee Slide 18
Implement Vision Develop Regional Community Zero Improvements Improvement Plan Increased Funding for Implementation of Ongoing Implementation of Corporate Customer Climate Change Service Strategy and Advance Transit Adaptation and Mitigation Citizen Experience Oriented Development Implement Farm 9-1-1 Plans Transformation Opportunities Program Project Innovate and Modernize Advance Transit Oriented Development Opportunities Operations and Administration Continue to Invest in Implement Digital Broadband Initiatives Identify and Implement Durham Strategy Smart Cities Solutions Waste Management Education, Blue Box Continued to Implement Region’s Replacement and Litter Control Program Diversity and Inclusion Strategy February 11, 2020 Presentation to Finance and Administration Committee Slide 19
Implement Cannabis Legislation Respond to Reductions in Provincial Changes to the Development and Smoke and Vaping By-law Funding while Maintaining Service Charges Act (Bill 108) Levels Anticipated Transfer of Responsibility Presto Device Refresh for Prosecution of Part III Offences Accommodate Ongoing Legislative and Regulatory Changes Develop a Community Safety Establish Corporate Privacy and Well-Being Plan and Access Office and Implement Information Management Strategy Continue with Specialized Implement Construction Contract Administration Solution Transit Eligibility Review February 11, 2020 Presentation to Finance and Administration Committee Slide 20
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