1. Long-Term Financial Model & Ontario AM Working Group Meeting
City of Brampton
Long-Term Financial Model &
Financial Master Plan
September 27, 2016
Ontario AM Working Group Meeting

2. Reasons for a LTFP Reason
Strategic (longer-term perspective for planning & budgeting)
External (statutory; lower cost of borrowing)
Growth management
Asset management
Transparency (better communicate financial information )
Staffing & service delivery (measure future service levels)

3. Brampton Goals and Objectives
Understand current conditions
Measure financial health
Assess impact of growth and development
Help decision-making
model
policies
set and monitor financial targets
Others?

4. What the LTFP Is Not: Land-use plan
Master servicing plan (requires engineering data)
Full replacement of corporate budget software
Model for public use

5. Financial Model Structure
Tax Rate
Impact Analysis
Sensitivity
Testing
Base Parameters
(Forecasts, Plans, Policies)
Operating
Forecast
Capital Forecast
(Growth, legislative
& replacement)
Assessment & Tax
Revenue Forecasts
Population, Housing,
Demographic &
Non-Residential
Projections
Financial Parameters,
Assumptions & Drivers
Financial Policies,
Objectives &
Measures

6. Information Requirements
Document
Financial
Prior Actuals
Operating and Capital Budget
Asset Management Data
Financial Policies
Financial Statements
Reserve Contributions
Reserve Continuity Schedule
Debt Guidelines/Schedules
Assessment Data
Development Charges Study

7. Information Requirements Cont’d
Document
Planning
Growth Forecast IT
Implementation requirements
Other
Departments
Key drivers, servicing studies, master plans etc.

8. Model – Key Features Structure
Software-based (various hosting options)
Allows for annual updates to revise and track financial targets/policies
Scope
City-wide geographic focus
All services examined
Outputs
Outputs will match budgets (i.e. services, accounts)
Various measures (i.e. cost of service per household/capita)
Tax impacts
Growth and assessment forecasts
Operating forecast (volumetric, inflation, capital induced)
Capital program (growth and repair and replacement)
Reserve fund adequacy
Debt load/capacity
Scenarios
Growth rates (faster growth or slower growth)
Capital (Add, remove or change projects/funding sources)

9. Who Influences the City’s Financial Position?
Council
Staff
Programs
Boards and Agencies
Region of Peel
Province
Private Sector Partners
Tax Payers

10. Modeling the Key Drivers
Cost Centre Drivers:
Growth and demographic-related factors
Regulatory and Legislative Changes
Service Level/Strategic Changes
Account Based Drivers:
Apply to all cost centres
Often inflationary changes that would occur in the absence of growth e.g. salary increases
Capital Induced Drivers:
Often large-scale DC funded projects
May also be tax supported e.g. Admin expansion
Debt Based:
Modelling of previous and anticipated commitments

11. Model Results
Here is what the future looks like under a base set of parameters
What is sensitive to change?
What can be influenced by policy?
What are the desired outcomes?

12. Questions
Jason Bevan 30 St. Patrick Street, Suite 1000 Toronto, ON, M5T 3A3 P: (416) ext. 13 F: (416) E: