2015-2018 Regional Budget
Presentation to Council
Bill Hughes
February 26, 2015
Council / Committee Review Process
Council
January 22, 2015
Committee of the Whole (1)
February 12, 2015
York Regional Police Transportation Services
Community & Health Services
Committee of the Whole (2)
February 19, 2015
Environmental Services Corporate Management Conservation Authorities Fiscal Strategy (reserves and
debt management) YRRTC
Budget Reduction Options
Council
February 26, 2015
Proposed tax increase
Operating Budget for 2015
Capital Budget for 2015
Ten-Year Capital Plan
Capital plan compliant with the Province’s Annual Repayment Limit regulation
2015 2016 2017 2018
2.97% 2.85% 2.69% 2.35%
$1.9B
$826M
$5.8B
The proposed budget at a glance
3
A multi-year operating budget
2015 - 2018
Operating Budget
2015
$ Million
2016
$ Million
2017
$ Million
2018
$ Million Gross Expenditures
1,886 1,972 2,052 2,126Non-Tax Revenue
948 989 1,025 1,057Net Expenditures
938 983 1,027 1,069Assessment Growth* (%)
2.16 1.99 1.89 1.82Proposed Tax Levy Increase (%)
2.97 2.85 2.69 2.35*Assessment growth reflects change in taxing capacity
Key features of the budget
Multi-year budget
Selected improvements to service levels
Robust capital plan
Savings for future capital asset replacement
Improved fiscal strategy to reduce future debt levels and protect the credit rating
5
New initiatives included in the budget
129 new police officers and 51 police civilian staff over the next four years to
respond to population growth, as well as implementation of a new part-time Cadet program
Continued implementation of the Emergency Medical Services 10-year Resources and Facilities Master Plan, including the addition of 95 new EMS staff
Responding to an increased need for mental health programs and services,
including effective crisis intervention, intensive case management and wrap-around supports to those living with mental illness
Opening of a state-of-the-art transit operations, maintenance and storage facility in 2015
Continued implementation of the vivaNext bus rapid transit services on the new rapidways
Funding for the Regional contribution to a new university in Markham
The construction of 126 new lane kilometers of roads (including urbanization of existing rural roads).
Continued implementation of the Fiscal Strategy to lower peak debt to $2.9 billion in 2017 and eliminate tax levy debt
York’s ten-year capital plan is largest among comparable municipalities
7 5,820
5,114
3,592 3,558
3,373 3,157
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
York Peel Waterloo Durham Hamilton Halton
$ Millions
Ten-Year Capital Plans for York and other Regions
Figures reflect Ten-Year Capital Plans proposed in 2015, except Halton which is the 2015 approved Ten-Year Capital Plan, and Durham, which is the 2014 approved Ten-Year Plan
Major capital investments in transportation infrastructure
The capital plan includes record levels of roads investment over the next four years, responding to the need to address congestion
The federal, provincial and regional governments will invest
$1.9 billion in transit between 2015 and 2019
0 50 100 150 200
2006 Actual
2007 Actual
2008 Actual
2009 Actual
2010 Actual
2011 Actual
2012 Actual
2013 Actual
2014 Forecast
2015 Budget
2016 Budget
2017 Budget
2018 Budget
$ Millions
Roads Capital Investment
Top 10 capital projects by Capital Spending Authority
Projects
Proposed 2015 CSA
($ Millions)
Spadina Subway Extension 408
Duffin Creek Incinerator 1 & 2 Rehabilitation 170 Duffin Creek Stage 1 & 2 Upgrades 149
Peel Water Supply Cost-Shared Work 112
Bus Rapid Transit (BRT) Facilities and Terminals 79
Upper York Sewage Solutions 76
York Durham Sewage System (YDSS) Southeast
Collector 67
Toronto Water Supply Cost-Shared Work 65
West Vaughan Sewage Servicing 59
Southeast Collector Rehabilitation Primary System 55
9
Fiscal strategy lowers debt levels
$ Millions
The fiscal strategy will lower the peak level of debt to $2.9 billion
0 500 1,000 1,500 2,000 2,500 3,000 3,500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Outstanding Debt Projection
2014-2024
11
$ Millions
- 100 200 300 400 500 600
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Annual Debt Needs
2014 Forecast Debt Needs 2015 Forecast Debt Needs
2014 Actual 2014
Forecast 2014 Budget Total: $2.4 Billion
2015 Budget Total: $1.1 Billion
2015 Debt Management Plan shows lower
requirements over the next 10 years
The Region is well within its Annual Repayment Limit (ARL)
Growth-Related Annual Debt Repayment Limit – Capital Spending Authority Basis vs. Existing and Anticipated Debt and Financial Obligations
2015-2024
0 100 200 300 400 500 600 700 800 900
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$ Millions
Existing Financial Obligations New Financial Obligations (CSA Basis) Growth-Related ARL - 80%
Adjusted ARL @ 70% Own Source Revenue Only
Fiscal strategy-related reserves will grow strongly
13 0
500 1,000 1,500 2,000 2,500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Asset Replacement Reserves Debt Reduction Reserve
$ Millions
Reserve-to-debt ratio will improve despite budget reductions
0%
50%
100%
150%
200%
250%
2007 2008 2009 2010 2011 2012 2013 2014 Est
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
The reserve to debt ratio is declining, but is forecast to
increase in 2015 and exceed 100% by 2020
Summary of the budget
A multi-year budget to align with the term of Council
Investments to maintain service levels and provide selected enhancements
A robust capital plan that better aligns the timing of projects with expected growth
Dramatically less new debt and markedly lower peak debt levels
No new tax levy debt whatsoever in next ten years
Rapidly increasing reserve balances
Improved budget book format and structure
Proposed tax increases of 2.97%, 2.85%, 2.69% and 2.35%
15
Tax impact on homeowner
The average assessed value of a residential
property in the Region is
$515,000. A tax levy increase of 2.97 percent in 2015 equates to $64 per household, on
average.
$35
$52
$76
$70
$50
$63
$69
$62
$64
