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2. How the budget works Niagara Region's budget has three components, the operating budget, which is similar to your day-to-day costs like gas, groceries or phone bill and the capital budget which is like your longer-term infrastructure investments, similar to your car or house and the rate budget. The operating budget pays for the daily business of the Niagara Region and its boards and agencies. This budget pays for programs and services, including the staff to deliver those services, supplies and repayment of debt for major projects. The capital budget is the annual plan for the purchase of capital assets, such as: roads, water treatment plants, sewers, buildings, machinery and equipment. The rate budget pays for rate based services such as waste management, curbside collection, management of a recycling facility and landfill sites as well as the production of water and treatment of wastewater. 2

3. 2012 Budget Process MeetingDatesTimesTopic / Discussion Budget Review Committee of the Whole (BRCOTW) June 9, 20116:30 p.m. -9:30 p.m.2012 Budget guidance BRCOTWSept. 8, 2011 6:30 p.m. - 10 p.m.Rate methodology BRCOTWSept. 22, 2011 6:30 p.m. - 10 p.m. 2012 operating and capital budget update, Q2 budget to actual BRCOTWOct. 13, 20118:30 a.m. - 4:30 p.m.Levy operating budget presentations BRCOTWOct. 20, 20114 p.m. - 10 p.m. Rate operating presentations (Niagara Peninsula Conservation Authority) Public EngagementOct. 24, 20117 p.m. - 9 p.m.Water Wastewater and Waste Management budgets and operations Public EngagementOct. 26, 2011 & Nov. 2, 2011 7 p.m. - 9 p.m.Draft operating and capital budgets BRCOTWNov.3, 20116:30 p.m. - 10 p.m.Capital budget approval and operating updated. NRPS and Economic Development updates BRCOTWNov.10, 20114 p.m. - 10 p.m.Rate budget approval; operating update; Q3 budget to actual and forecast update BRCOTWDec. 1, 20116:30 p.m. - 10 p.m. Levy operating budget and user fee by-law approval BRCOTWDec. 8, 20114 p.m. - 10 p.m.If required 3

4. 4 2012 Approved Budget After almost 50 hours of budget deliberations, Regional Council approved the following budgets, on December 1, 2011: Operating Capital Rate

5. 5 Affordability and Sustainability Income growth + Assessment growth = Affordability Today (2.0% to 3.8%) + 1.0% = 3.0% to 4.8% June 9, 2011 Budget Guideline Presentation Sustainability means meeting the needs of the present without compromising the ability of future generations to meet their own needs. Contingency reserves Employee future benefits Infrastructure gap

6. Property Taxes in Niagara Region Niagara Region property taxes fund services in your community. Your property taxes are divided into three areas: Niagara Region Local area municipality School Board / Education 6

7. Property Taxes in Fort Erie Fort Erie property taxes fund services in your community. Your property taxes are divided into three areas: Niagara Region Fort Erie School Board / Education 7

8. 8 Historical Property Tax Increase Comparison Including Growth

9. Historical Review of the Levy 9 Affordability Sustainability Gap Equivalent to 0.44% Annual Tax Increases after assessment growth 2012 amounts above the line are sustainability decisions to be discussed later in presentation

10. 10 Your property tax increases, after assessment growth, for the past 10 years: YearTax Increase 20022.84 per cent 20035.42 per cent 20044.30 per cent 20053.87 per cent 20061.95 per cent 20072.19 per cent 20080.04 per cent 20091.24 per cent 2010(-0.8) per cent 2011(-1.37) per cent 20123.14 per cent

11. 11 Proposed 2012 Property Tax Changes AreaGuidanceLevy Change Impact on Levy Cost Per Household * Proposed 2012 Budget$8,176,760$6,523,8302.31% Assessment Growth-1.00% Proposed 2012 Budget - Affordability1.31%$17.06 * Estimated impact to the Average Residential Home (2011 average assessment = $219,732) New Programs550,0000.19%$2.54 Total Sustainability & New Programs$5,191,4471.84%$23.97 Total Levy Increase Affordability & Sustainability$11,715,1563.14% $41.03 Sustainability Decisions Inter-Municipal Transit NRPS Interim Accommodations 2009 OMPF Reconciliation Contingency Reserve 2,048,537 2,017,910 (1,725,000) $2,300,000 0.7% -0.6% 0.8% $9.46 $9.32 $(7.97) $10.62

12. 2012 Proposed Operating Budget Total GrossRevenueProperty Taxpayers/Rate Payers (what you pay) Programs paid through your tax levy dollars $618.8 million$324.6 million$294.5 million Programs paid through rates $159.4 million$20.3 million$139.1 million Total:$778.2 million$344.6 million$433.6 million 12

13. Proposed 2012 Capital Budget 13 DepartmentProposed 2012 Budget Emergency Capital Levy$1,000,000 Information Technology Solutions2,500,000 Properties Management11,280,000 Integrated Community Planning110,000 Community Services1,297,100 Public Health and Emergency Medical Services1,850,000 Fleet3,346,000 Transportation54,490,000 Niagara Regional Housing8,190,850 Niagara Regional Police Services2,730,000 Waste Management5,700,000 Water22,150,000 Wastewater34,330,000 Total:$148,973,950

14. 14 Proposed 2012 Capital Financing Financing Source Amount Capital Levy$9,245,000 Unfunded Capital Levy$2,900,000* Long-term Debt 34,773,597 Reserves 65,726,676 Development Charges 15,995,000 Cost Sharing with Area Municipalities 4,200,000 Federal Gas Tax 13,100,000 Other Grants and Subsidies 3,033,677 Total:$148,973,950 * Staff to provide funding alternates to Council through Corporate Service Committee in 2012

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16. Where do your tax dollars go? Program or ServiceWhat you pay Leadership and Governance$10.70 Public Health and Emergency Medical Services$106.21 Corporate Services$61.17 Community Services$168.02 Public Works$112.57 Integrated Community Planning$28.84 General Government Expenses$230.14 Provincial Offences Court Administration($4.62) Niagara Regional Housing$122.75 Niagara Economic Development Corporation$8.99 Niagara Peninsula Conservation Authority$30.28 General Government Revenues($115.63) Niagara Regional Police Service$576.71 Sustainability and New Programs$23.97 Total : $1,360.11 Rate ServicesWhat you Pay *Garbage, Recycling, Organics $167.57 (or $3.22 per week) Total Regional Taxes $1,527.68 (including garbage, recycling and organics) House assessed at $219,732 in 2011 *The cost of garbage, recycling and organics differs for each municipality, $167.57 is the average cost. 16

17. Community Services Seniors Services for 1,500 seniors at eight long-term care homes and over 4,000 seniors through seniors community programs Children’s Services for more than 15,447 children from birth to 12 years Social Assistance and Employment Opportunities for 35,507 residents monthly Emergency Shelter, Hostels and Homelessness Prevention for more than 9,000 annually 17

18. Community Services Program / ServiceTotal budget (2012) Niagara’s Share (tax levy 2012) What you paid in 2011 What you will pay in 2012 Seniors Services$72.2 million$4.6 million$21.23 $21.12 Children’s Services$31.5 million$6.2 million$28.25 $28.55 Social Assistance and Employment Opportunities (SAEO) $119.2 million$25.1 million$116.69 $115.90 Emergency Shelter, Hostels & Homelessness Prevention $1.6 million$0.5 million$2.30 $2.45 Total Community Services $224.5 million$36.4 million$168.47 $168.02 18

19. Public Health Deliver public health programs and services in the in the following areas: Communicable disease control Immunization Sexual health Dental health Environmental health Chronic disease and injury prevention Health promotion and information Family health Emergency Medical Services (responds to over 72,000 calls annually) 19

20. Public Health Program / Service Total budget (2012) Niagara’s Share (tax levy 2012) What you paid in 2011 What you will pay in 2012 Public Health: Promotion Protection Prevention $36.3 million $6.9 million $31.83 $31.88 Niagara Emergency Medical Services $36.6 million $16.1 million $74.39 $74.33 Total Public Health $72.9 million $23.0 million $106.22 $106.21 20

21. Integrated Community Planning Regional Clerk’s Office Corporate Communications Regional Policy Planning Regional Emergency Management Community and Corporate Planning Inter-governmental agenda for planning Total Budget (2012) Niagara’s Share (tax levy 2012) What you paid in 2011 What you will pay in 2012 *$7.0 million$6.2 million$28.79*$28.84 21 *Excludes new programs. New programs = additional $2.54

22. Leadership and Governance Offices of the Regional Chair, Members of Council and Chief Administrative Officer: Overall political and administrative leadership and governance Champion and execute Council’s Business Priorities Chair is Chief Executive Officer and represents Region provincially, nationally and internationally Executive management of corporation, staff, the delivery of programs and services, development of policy and advice to Chair and Council in pursuit of Council’s Business Plan Total Budget (2012) Niagara’s Share (tax levy 2012) What you paid in 2011 What you will pay in 2012 $2.3 million $10.93$10.70 22

23. Corporate Services Financial Management and Planning Legal Services Human Resources Facilities Management IT Solutions Total Budget Niagara’s Share (tax levy 2012) What you paid in 2011 What you will pay in 2012 $14.4 million$13.2 million$60.65$61.17 23

24. General Government Expenditures/Revenues General Government Total budget (2012) Niagara’s Share (tax levy 2012) What you paid in 2011 What you will pay in 2012 Expenditures$51.8 million$49.8 million$225.24$230.14 Revenues($25 million) ($116.79)($115.63) 24 Debt Charges $30,966,486Responsive Region$200,000 911 Emergency Phone $1,207,888Capital Financing $8,941,517 Contingency $600,000Investment Income$11,325,000 MPAC$5,912,113

25. Public Works Transportation Services maintains over 750 km of roads, 179 bridges, and culverts and 295 traffic signals, including snow removal services Development Services reviews over 550 development applications annually, approval & inspection of 370 private sewage systems annually Program / ServiceTotal budget (2012) Niagara’s Share (tax levy 2012) What you paid in 2011 What you will pay in 2012 Administration$0.025 million$0$4.11$0 Transportation*$26.6 million$23.6 million$103.92$108.88 Development Services$1.5 million$0.8 million$3.69 * Excludes sustainability items. 25

26. Public Works - Rates Waste Management curbside collection of recyclables, organics and garbage, management of a recycling facility and 14 landfill sites Water Services: 59 billion litres of water per year treated at six plants and transmitted through 53 facilities and 307 km of watermains Wastewater Treatment: 79 billion litres of wastewater treated at 11 plants and collected through 123 pump stations and 316 km of wastewater mains Program / Service Total Budget - 2012 (incl. capital financing) Rate/Requisition to Local Municipalities – 2012 Average Regional Cost per Household in 2012* Estimated Average Retail Increase/ (Decrease) per Household in 2012** Waste Management $52.3 million$34.0 million$168($2.15) Water & Wastewater $107.1 million$105.0 million$423$14.00 26 * For water & wastewater, determined using total rate/requisition amount to local municipalities divided by total flows for a household consuming 250 M 3 per year ** Final residential impact due to Regional rate & requisition varies by local municipality and is subject to local budget processes including decisions on consumption, assessment value, allocation of cost between fixed & variable rates, and application of other funding sources. Based on assessment value of $219,732, 1% assessment growth, water consumption of 250 M 3 and meter size of 5/8”.

27. 27 Estimated Average Household Impact* Waste Management Services * Final residential impact is subject to final assessment values & local budget processes

28. Agency, Boards and Commissions Niagara Regional Police Service Provincial Offences Court Administration Niagara Peninsula Conservation Authority Niagara Regional Housing Niagara Economic Development Corporation 28

29. Agency, Boards and Commissions Program / ServiceTotal budget (2012) Niagara’s Share (tax levy 2012) What you paid in 2011 What you will pay in 2012 Niagara Regional Police Service $138.0 million $124.9 million $569.50$576.71 Provincial Offences Court Administration $8.1 million($1 million)($4.45)($4.62) Niagara Peninsula Conservation Authority* $6.9 million$6.6 million$29.78$30.28 Niagara Regional Housing $49.3 million $26.6 million$120.18$122.75 Niagara Economic Development Corp.* $1.9 million $8.84$8.99 29

30. Where do your tax dollars go? Program or ServiceWhat you pay Leadership and Governance$10.70 Public Health and Emergency Medical Services$106.21 Corporate Services$61.17 Community Services$168.02 Public Works$112.57 Integrated Community Planning$28.84 General Government Expenses$230.14 Provincial Offences Court Administration($4.62) Niagara Regional Housing$122.75 Niagara Economic Development Corporation$8.99 Niagara Peninsula Conservation Authority$30.28 General Government Revenues($115.63) Niagara Regional Police Service$576.71 Sustainability and New Programs$23.97 Total : $1,360.11 Rate ServicesWhat you Pay *Garbage, Recycling, Organics $167.57 (or $3.22 per week) Total Regional Taxes $1,527.68 (including garbage, recycling and organics) House assessed at $219,732 in 2011 *The cost of garbage, recycling and organics differs for each municipality, $167.57 is the average cost. 30

31. THANK YOU 31