1. David Szwarc, Chief Administrative Officer and Dan Labrecque, Chief Financial Officer, Region of Peel , Providing a High Level Overview of the 2008 Current and Capital Budgets
Received
Councillor Parrish requested that the minutes of the meeting reflect that the “territory covered” as part of the Thursday, December 6, 2007, General Committee Budget not be repeated at a subsequent meeting due to the absence of members from this, the first budget meeting.
David Szwarc, Chief Administrative Officer (CAO); Dan Labrecque, Chief Financial Officer (CFO) and Treasurer; and Norma Trim, Deputy Treasurer, provided a detailed overview of the 2008 Region of Peel draft budget including current budget pressures, proposed utility rate changes and the 10-year draft Capital Budget.
Complete text of the 2008 Budget Overview presentation:
Councillor Mullin inquired, based on the provincial 50/50 funding formula of paramedics for 2007, the amount of the total funding shortfall. Janette Smith, Commissioner of Health, responded that staff budgeted in 2007 for 47 per cent funding and at the end of 2007, funding was $900,000 below budget.
Councillor Mullin inquired if all of the items listed on the slide represented new programs. David Szwarc responded that the first two items on the list were new programs and the remainder represented expansion of existing programs. Councillor Mullin asked if the expanded programs were driven by growth. David Szwarc responded that the program expansions were in response to both the growth in population and growth in the complexity of the issues attributable to a diverse and maturing community.
Councillor Iannicca arrived at 1:39 p.m.
Councillor Morrison requested information regarding the number of Regional staff in the position of Energy Associates and a description of their roles. David Szwarc, Chief Administrative Officer (CAO) responded that the requested information would be provided at the December 13, 2007 Regional Council Budget meeting.
Councillor Parrish requested clarification regarding the provincial funding shortfall, estimated for 2008 to be 32.4 million dollars, and if part of the shortfall resulted from growth or provincial funding decisions. David Szwarc explained that the funding from the Province is approved annually, thus the shortfall is not the result of a growth related lag, it is a funding decision consciously made not to pay the full amount, but rather to only pay “approved expenditures” as determined by the province. Councillor Parrish asked if Regional expenditures were comparable with other municipalities. David Szwarc replied that based on the Ontario CAO Municipal Benchmarking Initiative (OMBI) data, Region of Peel expenses are within the range of normal. He referred to one area in Ontario Works Administration where Region of Peel costs are higher, but the length of time on assistance is shorter, resulting in reduced shelter and benefit costs for the Province, yet the Province will not pay for the increased administrative costs that are generating savings for the Province.
Chair Kolb added that growth is a major pressure in the delivery of Regional programs and services. David Szwarc responded that growth is a driver and that it is included in all funding discussions with the Province.
Councillor Adams asked if other communities can provide the mandated services with the level of provincial funding received. David Szwarc affirmed that other communities can deliver the mandated provincial services, but they are not communities facing the same growth pressures as the Region of Peel. He referred to the example of Public Health percentage funding increase that was exactly the same for all municipalities, regardless of growth.
Councillor Mullin asked what the projected 2008 revenue shortfall is for utilities. Norma Trim, Deputy Treasurer, responded that the budget has been adjusted by 3 per cent in an effort to avoid any utility revenue shortfall. She explained that to address the overall revenue shortfall, the full utility rate increase will be phased in over two years, with the funding deficit of $11 million from 2007 being funded from reserves. Dan Labrecque responded that staff is looking at reviewing the entire rate structure and a number of options to reduce the volatility component of all utility rates.
Councillor Paterak inquired if varied rates could be applied to the water bottling industries that are benefiting from Region of Peel water and its low cost to generate corporate profits. Dan Labrecque responded that consideration of differential rates could be included as part of the broader utility rate review. Councillor Paterak asked if staff was looking at both a “systems” charge and a “consumption” charge. Dan Labrecque indicated that staff could include looking at such charges during the utility rate review process.
Councillor Miles stated that water rates in the Region of Peel are low because there is no debt and the infrastructure is in good shape. She noted that a 14 per cent utility rate increase was levied in 2007 (blended for water and wastewater) and that this was significant. Given that a significant portion of the rate increases are attributable to conservation authority funding the rate should appear as a separate line item on the utility bill so it is transparent to members of the public. Dan Labrecque responded that to change the billing software to separate the rate for conservation authorities was estimated to cost $10 million and that such a cost was prohibitive. Further, the upcoming utility rate review may identify further billing requirements that should be determined prior to obtaining any update or replacement of the current system. Councillor Miles asked staff to review alternative means of informing the public of the portion of the utility bill that is being used to fund the conservation authorities. David Szwarc suggested that bill inserts could be added quarterly to the utility bills as an interim solution.
Councillor Mullin asked what the total Capital contribution increase was for the 2007 Budget and over the past five years. Dan Labrecque responded that there has been essentially no increase to reserve contributions for the last five years. David Szwarc responded that for 2007, $143 million was contributed into reserves, for 2008 staff is recommending that the contribution increase by 1 per cent to approximately $158 million (roughly $80 million for water and sewer, $61 million for tax rate reserves and $17 million for conservation), an amount roughly equal to 10 per cent of the current budget.
Councillor Mullin stated that given the budget situation as presented, Ontario Disability Support Program (ODSP) funding (ie tax room) and pooling savings should remain with the Region, given these are exactly the services that Regional Council has argued with the Province to provide funding for, and, from a principled perspective, the Region should retain this funding.
Chair Kolb noted that the recent census has shown that the Region is growing at an average rate of over 34,000 people per year, and if that growth rate continues additional funding will need to be obtained from the property tax base if the Province does not start to provide funding levels that reflect growth in the Region of Peel.
Councillor Parrish concurred with Councillor Mullin and thanked the presenters for what she considered to be a responsible draft budget, that accurately identifies the financial needs of the Corporation. She further highlighted ongoing demand in the areas of health and social services and noted that 100 per cent of the additional funding for pooling and ODSP should remain at the Regional level.
Mayor Morrison stated that the additional provincial ODSP and pooling funding should stay at the Regional level. She further noted, it would make it very difficult for Peel to continue to argue for its “fair share” of funding if the money is sent to the area municipalities.
Councillor Miles expressed that she was proud of Council for acting in a non-parochial manner that the funding from the Province is to address social services funding shortfalls, and that the matter should be dealt at this budget meeting.
Councillor Saito also asked that the matter be dealt with today, noting that this would help to clarify that the provincial funding is for social services provided by the Region and not funding that should be given to the area municipalities to fund other services. She noted that it would be very shortsighted given the number of years staff and the community has worked to obtain this necessary funding.
The following motion was placed by Councillor Parrish:
That the funding provided by the Provincial Government related to the Ontario Disability Support Program (ODSP) and the phasing out of the Toronto Tax, be retained by the Region of Peel.
Councillor Paterak requested a recorded vote.
Chair Kolb advised that in accordance with section VI.2(a) of the Region of Peel Procedural By-law 57-2006, as amended, a recorded vote is not permitted in General Committee.
Councillor Moore requested a vote to waive the rules of the Region of Peel Procedural By-law 57-2006, as amended, to permit a recorded vote in General Committee.
A vote was taken on the following motion:
That section VI.2(a) of the Region of Peel Procedural By-law 57-2006, as amended, be waived to permit a recorded vote at the December 6, 2007 General Committee – Budget meeting.
Carried Unanimously
A recorded vote regarding the following motion was called:
RECOMMENDATION GCB-7-2007:
That the funding provided by the Provincial Government related to the Ontario Disability Support Program (ODSP) and the phasing out of the Toronto Tax, be retained by the Region of Peel.
In favour:
E. Adams, G. Carlson, C. Corbasson, F. Dale, G. Gibson, A. Groves,
N. Iannicca, S. McFadden, G. Miles, E. Moore, M. Morrison, P. Mullin, C. Parrish, R. Paterak, P. Saito, J. Sanderson, J. Sprovieri, A. Thompson, R. WhiteheadTotal:
19
Opposed:
Nil
Total:
0
Absent:
S. Fennell, K. Mahoney, H. McCallion, P. Palleschi, M. Prentice
Total:
5
Carried Unanimously
See also Staff Reports – Item F2
