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Vision, Leadership and Responsibility 2018 Budget and 2019-2022 Financial Plan

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Vision, Leadership and Responsibility 2018 Budget and 2019-2022 Financial Plan Vision, Leadership and 2018 Responsibility Budget and 2019-2022 Financial Plan Fiscal Sustainability - Always a Priority CITY OF VAUGHAN | 2018 Budget and 2019-2022 Financial Plan 1 Table of Contents This is Vaughan 3 Message from the Mayor 5 Message from the City Manager 6 Executive Summary 16 Vaughan Vision 2020 19 Economic Profile 21 Municipal Services 25 Alignment with the Service Excellence Strategy Map 26 Budget Guiding Principles and Process 45 Budget Overview 46 Property Tax Supported Operating Budget 48 Five Year Budget Summary 48 Budget Variance 50 Gross Expenditures 51 Revenue 52 Assessment Growth 53 Non-Tax Revenue 53 Water, Wastewater and Stormwater – Rate-Supported Operating Budget 56 Executive Summary 56 Infrastructure Funding 57 Capital Budget 59 Capital Investments Aligning with Term of Council Priorities 59 Key Capital Investments 60 Asset Management 61 Capital Project Categories 61 Funding Sources 61 Cash Flow 63 Operating Impact of Capital Projects 63 Transparency and Accountability 65 Basis of Budgeting 65 Accrual Budget 66 Financial Sustainability 68 Growth-related Long-term Plans 68 Reserves and Reserve Funds 69 Managing Assets and Infrastructure 70 Managing Debt 70 Financial Policies 71 The Organization 74 Volume 2 – Department Budgets Volume 3 – Appendices 2 THIS IS VAUGHAN A city coming into its own, asserting itself and controlling its future. A place respected for its bold vision and spirit of innovation, acclaimed for its responsible planning and economic leadership, and renowned for respecting taxpayers’ dollars. A world-class city at the forefront of 21st century cities that is capturing the public’s imagination. This is the place to be. The city of choice. CITY OF VAUGHAN | Volume 1 | 2018 Budget and 2019-2022 Financial Plan 3 Vaughan City Council Front row, from left to right: Mario Ferri, Deputy Mayor, Local and Regional Councillor, Maurizio Bevilacqua, Mayor, Sunder Singh, Local and Regional Councillor, Gino Rosati, Local and Regional Councillor. Back row, from left to right: Alan Shefman, Ward 5 Councillor, Tony Carella, Ward 2 Councillor, Sandra Yeung Racco, Ward 4 Councillor, Marilyn Iafrate, Ward 1 Councillor, Rosanna DeFrancesca, Ward 3 Councillor. 4 Message from the Mayor This is an exciting time for the City of Vaughan. With continued development in our new downtown – the Vaughan Metropolitan Centre (VMC), construction underway on the Mackenzie Vaughan Hospital and the opening of the Toronto Commission’s (TTC) Line 1 Extension, this has been a year to remember. These achievements would not have been possible without strong financial leadership and discipline. Since becoming Mayor, it has been my priority to have the City recognized for its first-class administration, transparency, accountability and respect for hard-earned taxpayer dollars. These remain our goals and they helped shape the 2018 Budget. Guided by the principles of fiscal responsibility and Service Excellence, our plan is to deliver programs and services that best meet the needs of our growing community. This Budget Book clearly outlines our commitment to enhancing the quality of life in Vaughan by building a stable financial foundation while maximizing efficiencies. We strive for continuous improvement and new ways to innovate while maintaining a tax rate among the lowest in the Greater Toronto Area. In 2015, I tabled a motion to keep property tax increases to no more than three per cent each year for this term, which was fully supported by all Members of Council. I am proud to say that we have kept that promise again for 2018. I would like to express my sincerest gratitude to Councillor Rosanna DeFrancesca for being the Chair of the Finance, Administration and Audit Committee, and staff who had a significant role in making this year’s budget a success. As one of the fastest-growing municipalities in Canada, we must be innovative while keeping pace with change. By utilizing a multi-year budget and financial plan, the City can achieve its priorities while creating a longer- term view to facilitate planning for future growth. Building a city is a team effort. This budget reflects our commitment to moving forward while delivering services more effectively and efficiently. The successes we proudly enjoy today are the result of the efforts of many people who work together for the greater good. Let’s continue to make Vaughan the city of choice. Hon. Maurizio Bevilacqua, P.C. Mayor CITY OF VAUGHAN | Volume 1 | 2018 Budget and 2019-2022 Financial Plan 5 Message from the City Manager As the City of Vaughan continues to grow and evolve, so does the organization. To better respond to this transformation, we have put a plan in place to build capacity today in order to create a financially sustainable city of the future – a sought-after business centre providing thousands of job opportunities and a place where people want to live and raise their families. Building this capacity will be achieved responsibly and transparently so residents understand what they are getting for their tax dollars. We must ensure Vaughan is positioned to deliver on Council’s priorities while also undertaking important city-building projects related to growth and intensification. As City Manager, I am incredibly proud of our team’s efforts and dedication to achieving a balanced budget that respects the tax rate set out by Council while maintaining service levels to citizens despite rising inflationary pressures. I would like to recognize their contributions to Service Excellence in finding new and innovative ways to drive efficiencies. In particular, I would like to thank the staff in our finance department for going above and beyond to bring this budget together. Our goal is to continuously look for new ways of maintaining and enhancing our program and ser- vice delivery along with our quality of life, while at the same time remaining within the tax rate set by Council. Those priorities were achieved again this year. I am pleased to share the 2018 Budget Book with our residents and businesses. It provides an overview of the Term of Council priorities and how we are funding them to achieve our goals. I look forward to the next chapter in Vaughan’s Daniel Kostopoulos story as we work together to build a great future City Manager for Vaughan. Rendering of the Mackenzie Vaughan Hospital 6 CITY OF VAUGHAN | Volume 1 | 2018 Budget and 2019-2022 Financial Plan Rendering of the Mackenzie Vaughan Hospital 7 Where we’ve been, where we’re going. Vaughan’s story is one of growth. Since its incorporation as a city just over 25 years ago, which bound together the communities of Concord, Kleinburg, Maple, Thornhill and Woodbridge, Vaughan’s population has almost tripled. In fact, between 2011 and 2016 Vaughan’s 6.2 per cent rate of growth outpaced growth in the Province of Ontario (the Province) (4.6 per cent) and Canada (5 per cent). The 1980s and 1990s was a time when Vaughan was keeping up with the demands of an exploding population. Most of Vaughan’s investment in development was suburban in nature, limited mainly to single-family homes on large lots and sprawling one-storey high commercial plazas. The City’s infrastructure became almost completely auto-oriented making efficient and cost-effective public transit difficult to achieve. Vaughan has become a proactive, forward thinking and vision of a major urban city. Council now focuses on growth and how to take hold of the future without solely being reactive to changes. Vaughan is on an incredible journey to being a key economic development driver in the GTA and Canada, and long-term planning is providing a solid foundation upon which to build an exciting future. With a focus on pursuing a bold agenda, Vaughan is the city of choice for people to live, work and invest. The visionary city-building agenda is trans- forming Vaughan into the complete community where businesses and residents alike will flour- ish for many years to come. This is the future. Best of all, this transformation is being accom- plished responsibly for taxpayers. 8 CITY OF VAUGHAN | Volume 1 | 2018 Budget and 2019-2022 Financial Plan The city of choice…on the leading edge. If you inspire a city, you can make a real difference. Vaughan is now the 17th largest community in Canada and is recognized as one of the best places in the country to live and work. Now it is becoming better by bringing together new elements to further help citizens feel con- nected. The new Mackenzie Vaughan Hospital will change the lives of Vaughan citizens by providing access to world-class healthcare. The new Civic Centre Resource Library, and the City’s eight other libraries, offer residents free internet access, printing services, computer access, study rooms, and meeting rooms, books, magazines, DVDs and CDs at every location as well as multilingual collections, ESL and cultural programs. The City’s new downtown, the Vaughan Metropolitan Centre (VMC), will be home to a new recreation space, public transit and expressways, housing and entertainment – all state-of-the-art facilities that reinforce the awareness of Vaughan as the complete community – a welcoming destination to educate, excite and empower families and businesses. The VMC is unlike any development Vaughan has seen. One of Canada’s largest mixed-use developments, it is bold city-building aimed at rede- fining the model of 21st century downtowns and setting a new standard for smart growth that other cities around the world will strive to emulate. Once complete, this bustling, dynamic core will be home to 25,000 people and more than 11,000 jobs. It will be complemented by a world-class transit system offering residents and businesses seamless connectivity. New paths are providing more efficient forms of travel and aligning transit plans with population densities will support future growth in Vaughan’s true live-work-play complete urban community.
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