Operating Budget - 2016 Budget Summary
Budget Development Overview
The Region's budget development is based on the premise that outside of best efforts to reduce budgets and minimize the potential of annual increases, a framework is provided that sets a ceiling for annual budgets - tied directly to economic factors in our community.
In our annual and multi-year budgeting, we set a financial target to ensure practical and cautious use of taxpayer dollars. This direction is provided at the beginning of the budget process, typically in early June of each year. This applies to all departments, boards and agencies.
The methodology is set by adding the annual inflation pressures for goods and services (the Niagara Region uses the Bank of Canada's Core Consumer Price Index to estimate), with our forecast assessment growth, in a given year from new properties.
The goal is to ensure that budgets brought forward are considered affordable to the average tax payer. Refer to the appendix for a full review of all financial policies followed by the Niagara Region.
Operating Budget Overview
- Historical Assessment Growth
- Operating Budget Revenue Summary
- Budget Reconciliation Cash versus Accruals
- Multi-year Levy Budget Summary
- Operating Summary by Department
Niagara Region's budget serves as a means to allocate resources that will provide the services and maintain the infrastructure that residents and businesses depend on.
The operating budget process begins in March of each year, running through to December. Unlike some other levels of government, our municipal budget year mirrors the calendar year, running from January to December.
While the budget is typically approved in December, final tax rates are not set until the February of the following year, as the Municipal Property Assessment Corporation uses December to finalize property assessments.
Historical Assessment Growth
Read a text-only description of the historical assessment growth chart.
The operating budget provides for the everyday operation of Niagara Region's services and programs. It includes salaries and benefits, the purchase of services from other groups, companies or agencies, along with costs for repairs and maintenance, and materials and supplies. It would be the equivalent of your personal budget for groceries, a morning coffee, lunch and gas for your vehicle.
The budget process requires each department, board and agency to review their existing budgets to historical spend. This process is supported by our quarterly variance forecasting.
In addition to a review of prior spending patterns, adjustments are made for known process improvements and efficiencies, the economic indicators of the community, and strategic priorities, as established by Regional Council.
In a typical budget year, department budgets are completed in early September and presented and reviewed by Council over a three month period concluding with approval in December. The 2016 budget was approved by Council on Dec. 3, 2015.
Operating Budget Revenue Summary
| Description | 2015 Budget* | 2016 Budget | 2016 Budget Change | |
|---|---|---|---|---|
| Taxation - Levy | $ (336,569,992) | $ (339,399,869) | $ (2,829,877) | |
| Taxation - Rate | (143,697,496) | (143,390,524) | 306,972 | |
| Federal and Provincial Grants | (274,551,551) | (290,948,057) | (16,396,506) | |
| By-law Charges and Sales | (27,618,695) | (27,542,363) | 76,332 | |
| Other Revenue | (65,932,333) | (65,269,237) | 663,099 | |
| Transfers from Reserves | (14,756,251) | (13,471,699) | 1,284,552 | |
| Total Revenue | $(863,126,318) | $(880,021,749) | $(16,895,428) | |
| REVENUE SUMMARY DETAIL | ||||
| Taxation - Levy | ||||
| Levy | (321,897,516) | (325,108,233) | (3,210,717) | |
| Payment in Lieu | (10,277,547) | (10,016,636) | 260,911 | |
| Supplemental | (4,394,929) | (4,275,000) | 119,929 | |
| (336,569,992) | (339,399,869) | (2,829,877) | ||
| Taxation - Rate | ||||
| Wastewater | (66,151,788) | (65,993,756) | 158,032 | |
| Water | (41,966,906) | (42,095,472) | (128,566) | |
| Waste Management | (35,578,802) | (35,301,296) | 277,506 | |
| (143,697,496) | (143,390,524) | 306,972 | ||
| Federal and Provincial Grants | ||||
| Community Services | (196,612,156) | (210,950,198) | (14,338,042) | |
| Corporate Services | (59,022) | (60,202) | (1,180) | |
| Emergency Services | (23,619,288) | (25,302,267) | (1,682,979) | |
| Niagara Regional Housing | (13,639,078) | (13,847,131) | (208,053) | |
| Niagara Regional Police Services | (7,504,609) | (8,024,366) | (519,757) | |
| Public Health | (33,117,398) | (32,413,893) | 703,505 | |
| Public Works Levy | (350,000) | (350,000) | ||
| (274,551,551) | (290,948,057) | (16,396,506) | ||
| By-law Charges and Sales | ||||
| Community Services | (2,192,171) | (2,206,775) | (14,604) | |
| Corporate Administration | (2,500) | (4,000) | (1,500) | |
| Corporate Services | (260,389) | (255,389) | 5,000 | |
| Emergency Services | (2,504) | (3,500) | (996) | |
| General Government | (80,000) | (80,000) | ||
| Governance | (500) | (500) | ||
| Niagara Regional Police Services | (7,158,390) | (6,775,480) | 382,910 | |
| Planning and Development | (970,548) | (1,078,244) | (107,696) | |
| Public Health | (391,119) | (329,531) | 61,588 | |
| Public Works Levy | (3,087,862) | (3,136,390) | (48,528) | |
| Waste Management Services | (12,235,262) | (12,606,354) | (371,092) | |
| Water and Wastewater Services | (1,237,950) | (1,066,200) | 171,750 | |
| (27,618,695) | (27,542,363) | 76,332 | ||
| Other Revenue | ||||
| Court Services | (8,734,995) | (8,323,195) | 411,800 | |
| Development Charges | (2,079,000) | (1,484,000) | 595,000 | |
| Investment Income | (11,399,701) | (11,525,420) | (125,719) | |
| Niagara Regional Housing Revenue | (13,438,688) | (13,377,388) | 61,300 | |
| Police Secondment Revenue | (1,418,514) | (891,490) | 527,024 | |
| Proceeds on Rent, Concessions and Franchises | (489,939) | (444,200) | 45,739 | |
| Proceeds on the Disposal of Capital Assets | (515,000) | (485,000) | 30,000 | |
| Seniors Homes | (21,910,917) | (22,131,206) | (220,289) | |
| Waste Management Services | (4,144,843) | (4,689,651) | (544,808) | |
| Other | (1,800,736) | (1,917,687) | (116,948) | |
| (65,932,333) | (65,269,237) | 663,099 | ||
| Transfers from Reserves | ||||
| Capital Financing Costs | (1,931,141) | (3,871,999) | (1,940,858) | |
| Corporate Communications | (200,000) | 200,000 | ||
| Community Services | (1,064,013) | (158,610) | 905,403 | |
| Corporate Services | (38,365) | (641,592) | (603,227) | |
| Economic Incentives | (250,000) | (250,000) | ||
| Emergency Services | (1,448,313) | (1,132,496) | 315,817 | |
| Net Revenue Budget | (2,075,419) | (1,649,700) | 425,719 | |
| Niagara Regional Housing | (24,000) | (417,302) | (393,302) | |
| Niagara Peninsula Conservation Authority | (300,000) | (300,000) | ||
| Niagara Regional Police Services | (400,000) | (400,000) | ||
| Planning and Development | (1,500,000) | (1,000,000) | 500,000 | |
| Public Works Levy | (550,000) | (450,000) | 100,000 | |
| Sick Leave Payout | (275,000) | (200,000) | 75,000 | |
| Water and Wastewater Services | (4,950,000) | (3,000,000) | 1,950,000 | |
| (14,756,251) | (13,471,699) | 1,284,552 | ||
| Total Revenue | $(863,126,318) | $(880,021,749) | $(16,895,428) | |
*Includes in year budget adjustments
2016 Budget Reconciliation Cash versus Accruals
The Niagara Region, like most municipalities, does not budget for amortization and its annual impact on tangible capital assets, changes in the employee future benefit liabilities, and changes in the solid waste landfill closure and post closure costs liability.
These items are required to show the Niagara Region's net financial position for Public Sector Accounting Board reporting purposes, but are mostly non-cash items and therefore not included in the operating budget presented.
| Revenue | 2015 Budget* | 2016 Budget | Budget Change |
|---|---|---|---|
| Taxation - Levy | $ (336,569,992) | $ (339,399,869) | $ (2,829,877) |
| Taxation - Rate | (143,697,496) | (143,390,524) | 306,972 |
| Federal and Provincial Grants | (274,551,551) | (290,948,057) | (16,396,506) |
| By-law Charges and Sales | (27,618,695) | (27,542,363) | 76,332 |
| Other Revenue | (65,932,333) | (65,269,237) | 663,099 |
| Transfers from Funds | (14,756,251) | (13,471,699) | 1,284,552 |
| Total Revenue | $(863,126,318) | $(880,021,749) | $(16,895,428) |
| Expense | |||
| Departments | 440,733,743 | 456,920,033 | 16,186,290 |
| Boards and Agencies | 73,984,327 | 74,301,274 | 316,947 |
| General Government | 18,287,413 | 22,559,952 | 4,272,536 |
| Niagara Regional Police Services | 161,796,545 | 160,657,356 | (1,139,189) |
| Rate Programs | 168,324,290 | 165,583,134 | (2,741,156) |
| Total Expense | $863,126,318 | $880,021,749 | $16,895,428 |
| Net Surplus / (Deficit) | - | - | - |
| Public Sector Accounting Board Reporting Requirements | |||
| Capital Program Funding earned in a year | 96,900,000 | 105,100,000 | 8,200,000 |
| Capital Projects not resulting in tangible capital assets | (10,000,000) | (11,200,000) | (1,200,000) |
| Amortization | (70,000,000) | (68,500,000) | 1,500,000 |
| Principal Debt Repayment | 54,200,000 | 53,600,000 | (600,000) |
| Landfill Liability decrease | 600,000 | (600,000) | |
| Employee future benefits increase | (3,800,000) | (3,200,000) | 600,000 |
| Net Public Sector Accounting Board Reporting Surplus | $67,900,000 | $75,800,000 | $7,900,000 |
*Includes in year budget adjustments
Multi-year Levy Budget Summary
| Object of Expenditure | 2015 Budget* | 2016 Budget | 2017 Budget | 2018 Budget |
|---|---|---|---|---|
| Compensation | $ 347,154,151 | $ 351,268,664 | $ 360,215,385 | $ 367,752,304 |
| Administrative | 28,961,763 | 28,997,841 | 28,842,304 | 28,214,869 |
| Operational and Supply | 42,282,445 | 41,312,754 | 41,275,857 | 41,852,577 |
| Occupancy and Infrastructure | 25,751,219 | 26,621,512 | 27,202,152 | 27,733,642 |
| Equipment, Vehicles, Technology | 13,853,962 | 12,460,329 | 13,184,251 | 13,327,468 |
| Community Assistance | 161,260,922 | 173,501,572 | 175,701,276 | 181,374,133 |
| Partnership, Rebate, Exemption | 12,922,200 | 13,261,061 | 14,231,213 | 14,615,172 |
| Financial Expenditures | 46,999,479 | 46,593,442 | 41,534,199 | 40,471,449 |
| Transfers to Funds | 34,583,073 | 37,245,626 | 42,453,857 | 45,609,317 |
| Expense Allocations to Capital | (150,000) | (202,500) | (204,300) | (206,116) |
| Allocation Between Departments | (2,307,440) | (1,774,347) | (1,809,226) | (1,815,476) |
| Allocation Within Departments | (242,221) | (226,077) | ||
| Gross Expenditure | 711,069,553 | 729,059,877 | 742,626,968 | 758,929,339 |
| Taxation | (14,672,476) | (14,291,633) | (14,310,499) | (14,329,612) |
| Federal and Provincial Grants | (274,551,551) | (290,948,057) | (297,835,883) | (307,174,349) |
| By-law Charges and Sales | (14,145,483) | (13,869,809) | (14,002,811) | (14,052,984) |
| Other Revenue | (59,728,751) | (59,749,181) | (59,869,001) | (60,048,944) |
| Transfers From Funds | (9,806,251) | (10,471,699) | (8,324,711) | (7,473,450) |
| Gross Revenue | (372,904,512) | (389,330,379) | (394,342,905) | (403,079,339) |
| Net Direct Expenditure before Indirect Allocation | 338,165,041 | 339,729,498 | 348,284,063 | 355,850,000 |
| Indirect Allocation | (4,974,272) | (5,236,075) | (5,611,199) | (5,651,141) |
| Debt Allocation | (11,293,253) | (9,385,190) | (8,413,827) | (8,480,770) |
| Net Indirect Allocation | (16,267,525) | (14,621,265) | (14,025,026) | (14,131,911) |
| Net Expenditure after Indirect Allocation | $321,897,516 | $325,108,233 | $334,259,037 | $341,718,089 |
| Net Tax Levy | 3.07% | 1.02% | 2.81% | 2.23% |
| Assessment Growth | 1.15% | 1.02% | ||
| Tax Levy After Assessment Growth | 1.92% | 0.00% |
*Includes in year budget adjustments
2016 Operating Summary by Department
| Description | 2015 Gross Expenditure* | 2015 Revenue* | 2015 Net Expenditure* | 2016 Gross Expenditure | 2016 Revenue | 2016 Net Expenditure | 2016 Gross Change | 2016 Gross Change | 2016 Net Change | 2016 Net Change |
|---|---|---|---|---|---|---|---|---|---|---|
| Corporate Administration | $ 3,627,253 | $ (608,230) | $ 3,019,023 | $ 2,821,232 | $ (335,000) | $ 2,486,232 | $ (806,021) | -22.2% | $ (532,791) | -17.6% |
| Community Services | 267,982,422 | (221,939,387) | 46,043,035 | 281,800,773 | (235,416,689) | 46,384,084 | 13,818,351 | 5.2% | 341,049 | 0.7% |
| Corporate Services | 612,101 | (612,101) | 1,411,232 | (1,411,231) | 1 | 799,131 | 130.6% | 1 | 0.0% | |
| Economic Development | 2,796,799 | 2,796,799 | 3,360,298 | 3,360,298 | 563,499 | 20.1% | 563,499 | 20.1% | ||
| Emergency Services | 48,119,851 | (25,244,843) | 22,875,008 | 50,971,508 | (26,616,088) | 24,355,420 | 2,851,657 | 5.9% | 1,480,412 | 6.5% |
| Governance | 3,198,225 | (32,400) | 3,165,825 | 3,260,895 | (32,900) | 3,227,995 | 62,670 | 2.0% | 62,170 | 2.0% |
| Planning and Development | 7,368,985 | (2,810,548) | 4,558,437 | 7,192,862 | (2,338,244) | 4,854,618 | (176,123) | -2.4% | 296,181 | 6.5% |
| Public Health | 45,267,095 | (33,572,170) | 11,694,925 | 45,239,155 | (32,821,924) | 12,417,231 | (27,940) | -0.1% | 722,306 | 6.2% |
| Public Works Levy | 61,761,012 | (4,436,048) | 57,324,964 | 60,862,083 | (5,366,869) | 55,495,214 | (898,929) | -1.5% | (1,829,750) | -3.2% |
| Regional Departments | 440,733,743 | (289,255,727) | 151,478,016 | 456,920,038 | (304,338,945) | 152,581,093 | 16,186,295 | 3.7% | 1,103,077 | 0.7% |
2016 Operating Summary by Department continued
| Description | 2015 Gross Expenditure* | 2015 Revenue* | 2015 Net Expenditure* | 2016 Gross Expenditure | 2016 Revenue | 2016 Net Expenditure | 2016 Gross Change | 2016 Gross Change | 2016 Net Change | 2016 Net Change |
|---|---|---|---|---|---|---|---|---|---|---|
| Niagara Regional Police Service | 161,796,545 | (16,800,983) | 144,995,562 | 160,657,356 | (16,643,536) | 144,013,820 | (1,139,189) | -0.7% | (981,742) | -0.7% |
| Court Services | 7,901,157 | (8,734,995) | (833,838) | 7,489,357 | (8,323,195) | (833,838) | (411,800) | -5.2% | 0.0% | |
| Niagara Regional Housing | 58,518,489 | (27,101,766) | 31,416,723 | 59,438,504 | (27,688,336) | 31,750,168 | 920,015 | 1.6% | 333,445 | 1.1% |
| Niagara Peninsula Conservation Authority | 7,564,681 | (493,304) | 7,071,377 | 7,373,413 | (303,230) | 7,070,183 | (191,268) | -2.5% | (1,194) | 0.0% |
| Outside Boards and Agencies | 235,780,872 | (53,131,048) | 182,649,824 | 234,958,630 | (52,958,297) | 182,000,333 | (822,242) | -0.3% | (649,491) | -0.4% |
2016 Operating Summary by Department continued
| Description | 2015 Gross Expenditure* | 2015 Revenue* | 2015 Net Expenditure* | 2016 Gross Expenditure | 2016 Revenue | 2016 Net Expenditure | 2016 Gross Change | 2016 Gross Change | 2016 Net Change | 2016 Net Change |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt Charges | 1,931,141 | (1,931,141) | 3,871,997 | (3,871,999) | (2) | 1,940,856 | 100.5% | (2) | 0.0% | |
| Capital Levy | 0.0% | 0.0% | ||||||||
| Smarter Niagara Incentive | 1,403,000 | 1,403,000 | 1,655,228 | (250,000) | 1,405,228 | 252,228 | 18.0% | 2,228 | 0.2% | |
| Development Charge Grants | 800,000 | 800,000 | 800,000 | 800,000 | 0.0% | 0.0% | ||||
| Youth Retention | 60,000 | 60,000 | 60,000 | 60,000 | 0.0% | 0.0% | ||||
| Regional Programs and NHS Facility | 1,081,750 | 1,081,750 | 996,750 | 996,750 | (85,000) | -7.9% | (85,000) | -7.9% | ||
| Wainfleet Beach | 40,100 | 40,100 | 40,100 | 40,100 | 0.0% | 0.0% | ||||
| General Government | 5,315,991 | (1,931,141) | 3,384,850 | 7,424,075 | (4,121,999) | 3,302,076 | 2,108,084 | 39.7% | (82,774) | -2.4% |
2016 Operating Summary by Department continued
| Description | 2015 Gross Expenditure* | 2015 Revenue* | 2015 Net Expenditure* | 2016 Gross Expenditure | 2016 Revenue | 2016 Net Expenditure | 2016 Gross Change | 2016 Gross Change | 2016 Net Change | 2016 Net Change |
|---|---|---|---|---|---|---|---|---|---|---|
| Payments in Lieu | (10,277,547) | (10,277,547) | (10,016,636) | (10,016,636) | 0.0% | 260,911 | -2.5% | |||
| Property Assessment | 5,878,136 | 5,878,136 | 5,862,945 | 5,862,945 | (15,191) | -0.3% | (15,191) | -0.3% | ||
| Tax Revenue - Supplemental taxes | (4,394,929) | (4,394,929) | (4,275,000) | (4,275,000) | 0.0% | 119,929 | -2.7% | |||
| Tax Revenue - Written off | 5,287,862 | 5,287,862 | 4,968,648 | 4,968,648 | (319,214) | -6.0% | (319,214) | -6.0% | ||
| Tax Rebates | 630,422 | 630,422 | 658,400 | 658,400 | 27,978 | 4.4% | 27,978 | 4.4% | ||
| Other Revenues | (74,000) | (74,000) | (67,968) | (79,385) | (147,353) | (67,968) | -100.0% | (73,353) | 99.1% | |
| Surplus Revenues | 325,000 | (365,000) | (40,000) | 325,000 | (365,000) | (40,000) | 0.0% | 0.0% | ||
| Taxpayer Relief Reserve | 850,000 | (1,300,000) | (450,000) | 3,388,847 | (1,000,000) | 2,388,847 | 2,533,847 | 298.7% | 2,838,847 | -630.9% |
| Investment Income | (12,175,120) | (12,175,120) | (12,175,120) | (12,175,120) | 0.0% | 0.0% | ||||
| Subtotal Other Funding | 12,971,420 | (28,586,596) | (15,615,176) | 15,135,872 | (27,911,141) | (12,775,269) | 2,164,452 | 16.7% | 2,839,907 | -18.2% |
| $694,802,026 | $(372,904,512) | $321,897,514 | $714,438,615 | $(389,330,382) | $325,108,233 | $19,636,589 | 2.8% | $3,210,719 | 1.02% | |
| Assessment Growth | 1.02% | |||||||||
| Net Tax Levy | 0.00% |
2016 Operating Summary by Department continued
| Self Supporting Requisitions | 2015 Gross Expenditure* | 2015 Revenue* | 2015 Net Expenditure* | 2016 Gross Expenditure | 2016 Revenue | 2016 Net Expenditure | 2016 Gross Change | 2016 Gross Change | 2016 Net Change | 2016 Net Change |
|---|---|---|---|---|---|---|---|---|---|---|
| Wastewater | 73,993,238 | (7,841,450) | 66,151,788 | 71,087,956 | (5,094,200) | 65,993,756 | (2,905,282) | -3.9% | (158,032) | -0.2% |
| Water | 42,372,145 | (405,239) | 41,966,906 | 42,417,973 | (322,500) | 42,095,473 | 45,828 | 0.1% | 128,567 | 0.3% |
| Waste Management | 51,958,907 | (16,380,105) | 35,578,802 | 52,077,205 | (16,775,907) | 35,301,298 | 118,298 | 0.2% | (277,504) | -0.8% |
| $168,324,290 | $(24,626,794) | $143,697,496 | $165,583,134 | $(22,192,607) | $143,390,527 | $(2,741,156) | -1.6% | $(306,969) | -0.2% | |
| $863,126,316 | $(397,531,506) | $465,595,010 | $880,021,749 | $(411,522,989) | $(468,498,760) | $16,895,433 | 2.0% | $2,903,750 | 0.6% |
*Includes in year budget adjustments
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