1. Proposed 2013 Budget Highlights 1

2. Executive Summary Proposed City tax increase of 4% with an overall impact of 1.9% – Delivers on City’s Long Term Financial Plan Maintains Service Levels – No significant changes to city programs and services Invests in infrastructure – Increase infrastructure funding for road resurfacing program Joseph Brant Memorial Hospital Redevelopment – Increase levy for hospital redevelopment project 2

3. Guiding Principles Burlington, Our Future: – Vibrant Neighbourhoods – Prosperity – Excellence in Government 2012 Long Term Financial Plan (Report F-22-12) 1.Competitive Property Taxes 2.Responsible Debt Management 3.Improved Reserves & Reserve Funds 4.Predictable Infrastructure Investment 5.Recognized Value for Services 3

4. Long Term Financial Plan 1.Competitive Property Taxes (Objective #1) – Base budget tax change aligned with inflation, e.g. 2.3% vs. 2.64% (Toronto’s 3-year rolling average of Consumer Price Index) – Base Budget represents the city’s day to day operations to maintain existing service levels 4

5. Long Term Financial Plan 2.Responsible Debt Management (Objective #2) – Within target of 12.5% 5

6. Long Term Financial Plan 3.Improved Reserve and Reserve Funds (Objective #3) – Maintain a prudent level of stabilization reserve funds – Use of stabilization reserve funds restricted to unforeseen events (not to balance the operating budget) – Increased levy to the Joseph Brant Memorial Hospital redevelopment($1.2M) – City contribution to Randle Reef environmental remediation ($230K) 6

7. Long Term Financial Plan 4.Predictable Infrastructure Investment (Objective #4) – Continuing 0.5% dedicated infrastructure renewal levy – Increased funding to road resurfacing (Shave & Pave program) – 0.75% tax room transfer dedicated to infrastructure 7

8. Long Term Financial Plan 5.Recognized Value for Service (Objective #5) – Service Based Budgeting – Results Based Accountability – Business Process Mapping 8 2013 - Pilot Service Based Budgeting (SBB) - Develop Service Catalogue - Develop Business Cases 2014 - Begin Results Based Accountability – RBA - Develop Service-Based Business Plan - Begin Business Process Mapping 2015 - Service Based Budgeting Future Budgets

9. 2013 Proposed Tax Rate Change 9 City Tax Impact Overall Tax Impact FTE Change Corporate Challenges$3,573 Local Boards & Committees$233 Removal of 2012 1-time Exp/Rev$0-3.92 Operating Challenges$547-0.25 Re-deployment$(8)-4.62 Operating Efficiencies$(1,469) Total Tax Base$2,875-8.79 Tax Impact (%)2.3%1.2% Provision to the JBMH Reserve Fund$1,200 City Business Cases$8768.60 Total City Tax Impact$4,951-0.19 Tax Impact (%)4.0%1.9%

10. Decision Making Business Cases - Not Included in 4.0% Proposed Budget 10 City Tax Impact (in ‘000) City Tax Impact (incremental) Overall Tax Impact (incremental) FTE Impact Transit referred to 2013 Budget$ 5840.5%0.2%4.2 City – EBC not recommended$1,0430.9%0.3%10.0 Recommended by Local Boards$ 1,4011.1%0.5%11.0

11. Proposed 2013-2022 Capital Budget and Forecast 11 2013 Proposed2013-2022 (10 Year) $55M$551M All figures rounded to the nearest million

12. Joseph Brant Memorial Hospital Dedicated Tax Levy by Year 12 Increase in existing levy of $1.2M in 2013 and 2014 to bring total levy to $4.8M in 2014 Levy reduced over time to $1.2M by 2028 Total taxes levied are $62.1M over 19 years (2010-2028)

13. Joseph Brant Memorial Hospital Contributions by Year 13 Total contribution $60M ($28.05M cash, $31.95M debt) Total cost of contribution is $67.44M (2012-2028) including cash and debt payments (principal and interest) $ Millions

14. City’s Taxes Are Competitive 2011 Residential Comparison – Detached Bungalow – by Location 14

15. Burlington is only a Portion of the Property Tax Bill 2 tier municipal system Property tax bill made up of 3 components – City, Region, Education City receives $0.40 per $1.00 residential property tax (incl. hospital levy 2013 City Property Tax = $397.92 / $100,000 assessment (proposed) 15

16. What does a Taxpayer Receive for their Taxes? In the proposed 2013 budget, city taxes are $397.92 per $100,000 of assessment, which provide: Fire Protection - $79.59Planning, Building & Engineering - $15.87 Capital Funding - $77.68Contribution to JBMH - $11.14 Roads & Parks Maintenance - $62.71Mayor & Council - $4.47 Corporate Departments - $57.10School Crossing Guards - $3.63 Boards & Committees - $37.89Transportation - $2.28 Parks & Recreational Services - $32.72Corporate Expenses / Revenues -$(14.23) Transit - $27.07 16

17. Key Dates 17 January 30Public Budget Consultation (Burlington Art Centre) February 7Capital Budget Review & Approval at B&CS Committee February 19Council Approval of the Capital Budget February 26Delegations for Current Budget at B&CS Committee February 28, March 5 & 7 (if required) Current Budget Review & Approval at B&CS Committee March 18Council Approval of the Current Budget.