The Corporation Of The City Of Brampton: 2019 Annual Report

Brampton is aHealthy and Safe CityBrampton is focused on community safety, improving mental health support, andencouraging active and healthy lifestyles.Brampton hosted Canada’s largest cricket tournament – the Global T20 – promotingactive living to attendees and viewers. Komagatu Maru Park opened, and a coveredoutdoor community rink was added to Gore Meadows Community Centre. TheLighthouse Program was launched with a new network of faith-based organizationsto support residents in an emergency. A new Safety Advisory Committee wasestablished to take community input and support improvements. Working inpartnership with Peel Regional Police, the City secured a new downtown policesubstation.142019 Annual Report The Corporation of the City of Brampton

New recreationalopportunities forresidents7 newcommunityice rinks3 new orupgradedcricket fields 150,000investment intoNeighbourhood WatchBrampton communitysafety programHockey Night in Bramptonis a charity hockey gameproudly supporting theCardiology Program atBrampton Civic Hospital.In 2019, the event raised7 newoutdoorpickleball courts— including Canada’s first full-sizecricket pitch with nighttime LEDlighting at Teramoto park#FairDealForBrampton health care advocacycampaign18,000signatures solicitedfor a petition to theprovince1st timehosting theGlobal T20Cricket Tournamentover 400,00015The Corporation of the City of Brampton Annual Report 2019

Brampton is aWell-Run CityBrampton is improving day-to-day operations by streamlining service delivery,effectively managing municipal assets, and leveraging partnerships for collaborationand advocacy.2019 saw a zero per cent tax change for Brampton residents while maintainingthe services that residents rely on everyday. Service levels for snow clearing wereincreased, and a new online system for tracking snow clearing operations waslaunched. The City opened a second Service Brampton location at the Civic Centre,and broke ground on a new facility for Fire training and emergency management.162019 Annual Report The Corporation of the City of Brampton

Recognized forprudent financialmanagement2 awards received— Distinguished Budget Presentation Award and2019 Budget and 2018 Excellence in Financial ReportingValue for moneyCompleted7 departmental service andoperational reviewsOngoing advocacy to otherlevels of government311ServiceBrampton/311Services:Submitted an application for the Province’sAudit and Accountability fund totaling 376,544.82 for eligibility 22.5 millioninvested in Brampton projects in 2019Service Brampton launched a new 311 app for residents to submitrequests and access to City services in new ways. The first threeweeks of availability saw almost 450 311 app downloads.?600,000inquiries90%resolved at first contact(target 85%)89%of calls met or exceededexpectations (target 85%)17The Corporation of the City of Brampton Annual Report 2019

SENIORLEADERSHIPTEAMas of June 2020 at the timeof finalizing this report.David BarrickChief Administrative OfficerDerek BoyceActing Commissioner,Community ServicesJoseph PittariCommissioner,Legislative ServicesBill BoyesFire Chief182019 Annual Report The Corporation of the City of BramptonJasbir RainaCommissioner,Public Works andEngineeringAlex MilojevicGeneral Manager,TransitRichard ForwardCommissioner,Planning and EconomicDevelopmentPeter FayCity ClerkMichael DavidsonCommissioner,Corporate SupportServices

FINANCIALREPORT19The Corporation of the City of Brampton Annual Report 2019

MESSAGEFROM THE CITYTREASURERThe City's annual infrastructure levy increase continues todemonstrate our commitment to addressing our growingasset repair and replacement needs, a challenge commonto all municipalities across Canada. To cope with theunprecedented growth in Transit, and to improve local andregional connections for the long term, the City introduced aTransit Dedicated Levy, to be used exclusively towards Transitrelated costs and investments.Our strong financial position provided Brampton with theopportunity to invest in our community in ways that havelong-lasting economic impact, support our post-secondarypartners, create jobs and improve community pride andquality of life.David SuttonCity TreasurerI am pleased to present the City of Brampton’s consolidatedfinancial statements for the 2019 fiscal year.2019 was an exceptional year for Brampton. Managinggrowth, expanding services and commitment to newinvestments were all achieved at no change to property taxes,thanks to significant increases in revenues and decreasesin the cost of delivering existing services. With the Term ofCouncil Priorities that support Brampton’s 2040 Vision as aguide, the City focused on an exciting future, one in which wemay all be proud to live, play and work in this vibrant city.We invested in a larger transit fleet, expanded recreationalamenities and offerings, and dedicated more resourcestowards fire and snow safety. Focusing on our economy,we incentivized four key industry sectors, and positionedBrampton’s advantage to global audiences to attract foreigndirect investment in the city. Investments in strategic projects,such as Riverwalk and a Centre for Innovation, reflect ourcommitment to sustainability and innovation while harnessingthe immense potential of downtown Brampton.202019 Annual Report The Corporation of the City of BramptonWhile continuing to face the challenge of balancingexpectations with the pressures of rapid growth, Brampton’sdedicated team of professionals provided excellent service toresidents and businesses in the city in the most efficient andcost-effective manner.Brampton is the ninth largest and second fastest growingcity in Canada. Its people are young, diverse and educated,and we remain committed to working for the community tosolidify Brampton as a leader in innovation and jobs creation.The City’s Long Term Financial Master Plan and CorporateAsset Management Plan continued to provide guidance toenable financial flexibility, transparency and accountability.The City continues to advocate for additional funding fromother levels of government to ensure the community gets itsfair share of tax dollars.Brampton has grown at a tremendous pace over the lastdecade and the City has been focused on ensuring that ourservices and service levels grow and modernize along withthe expectations of our residents and businesses. Increasesin the utilization of City services and associated revenuesindicate that our community values the services and servicelevels provided by the City.In addition to key financial results, this report provides anoverview of the local economic climate, financial policies andperformance related to the delivery of the City’s programsand services.Consolidated Financial StatementsManagement is responsible for the preparation of the City’sconsolidated financial statements. These consolidatedfinancial statements have been prepared in accordance withthe reporting standards established for municipalities by thePublic Sector Accounting Board (PSAB), and included withinthe CPA Canada Accounting Handbook. We are confidentthat controls are in place in the City’s accounting and financialreporting systems that ensure accuracy of the consolidated

financial statements being presented.Effective January 1, 2019, the City adopted the followingstandard issued by the PSAB:i. PS 3430 – Restructuring TransactionsThe adoption of this standard has not resulted in additionalnote disclosure.The 2019 consolidated financial statements have beenaudited by KPMG LLP, Chartered Professional Accountants(KPMG) in accordance with Canadian Generally AcceptedAuditing Standards and their unqualified report is includedwith the consolidated financial statements. The role of thestatutory auditor is to present an independent opinion on thefair presentation of the City’s financial position and operatingresults as contained in the Financial Report, and confirm thatthe statements are free from material misstatements. Theauditors are also responsible for advising management andCity Council of any control or operational issues that may beidentified during their audit.The auditors have expressed the opinion that the City’sconsolidated financial statements present fairly, in all materialrespects, the financial position of the Corporation of the Cityof Brampton as at December 31, 2019, and comply with PSABmunicipal financial reporting requirements.Similar to the private sector, these consolidated financialstatements are prepared using the full accrual basis ofaccounting: revenues are recorded when they are earned andexpenses are recorded upon receipt of goods or services.Tangible capital asset reporting – including the City’sinvestments, consumption (amortization) and contributionsby developers – enables all levels of government to trackmunicipal infrastructure across the country.Overview of Economic Climate and Financial StrategiesBrampton continued to see robust economic growth in2019. Several economic fundamentals work to Brampton’sadvantage. As one of Canada’s fastest growing, diverse andyoungest cities, Brampton has immense talent and humancapital potential. Brampton’s location and connectivity arekey assets to trade and commerce, sitting in the middle ofCanada’s Innovation Super Corridor and adjacent to TorontoPearson, Canada’s largest and busiest airport.Brampton is a thriving economic hub and an activecontributor to the national and provincial economy. Thecity receives a steady stream of public and private sectorinvestments in commercial and infrastructure development.Brampton has a diverse and resilient economic base withkey sectors such as advanced manufacturing, health and lifesciences, innovation and technology and entrepreneurship.Message from the City TreasurerHighlights of economic indicators in Brampton: Estimated population of more than 690,000, expectedto increase to nearly 900,000 (888,600) by the year 2041.[Source: Hemson Consultant] The number of businesses in Brampton increased by 4.7per cent between 2018 and 2019. [Source: Business Counts,Statistics Canada] Brampton had over 73,000 businesses as of December2019. [Source: Business Counts, Statistics Canada] The Region of Peel unemployment rate is at 4.9% as ofJanuary 2020. [Source: Labour Force Survey, StatisticsCanada]Brampton saw 2019 investment of 1.81 billion in totalconstruction across industrial, commercial, institutional andresidential sectors [Source: COB, Building Permits]City Council is committed to transparency in governmentand engagement with its community. City Council strivesto balance the expectations of residents for programs andservices with the need to insulate taxpayers where possible,to ensure ongoing value for money.In addition to responding to the infrastructure needs of agrowing community, the City is also committed to maintainingits existing infrastructure base in a state of good repair.The City’s Corporate Asset Management Plan providesa framework for managing our assets in an effective andefficient manner while complying with applicable regulations.The City continues to pursue federal and provincial financialsupport for infrastructure projects to reduce the propertytax burden to the residents, while City Council advocates onbehalf of Brampton.Financial Management PoliciesThe City of Brampton has established a number offinancial management policies that provide a frameworkfor the Corporation’s overall fiscal planning and financial21The Corporation of the City of Brampton Annual Report 2019

Message from the City Treasurermanagement. This includes proactive financial planning andfinancial reporting processes.The City of Brampton is in compliance with the reportingguidelines required by the Ministry of Municipal Affairsand Housing.The City’s rigorous financial reporting on both operating andcapital results exceeds the requirements of both the federaland provincial governments. Staff regularly provide financialreports to City Council in various forms, including financialstatus reports. These reports are prepared and submittedto City Council, four times per year for operating and twotimes per year for capital, and clearly compare budgets withresults and provide comments on variances from budget andforecasts. These comprehensive, easy-to-read reports enableCity Council and the public to understand how their taxdollars are spent and how the City has performedagainst budget.Through its risk management program, the City proactivelyprotects the Corporation’s assets against financial losses andensures preservation of public service capacities. In addition,the City purchases insurance to ensure financial protectionis available should a large loss occur. The City has continuedwith the implementation of an Enterprise Risk Managementprogram. This initiative will incorporate a consistent approachto managing risk into the culture and strategic planningprocesses of the City.The Government Finance Officers Association of theUnited States and Canada (the “GFOA”) Awardfor Financial ReportingIn 2019, for the eighteenth consecutive year, the GFOAformally recognized Brampton for its excellence in financialreporting with the “Canadian Award for Financial Reporting”for the City’s 2018 Annual Report.The GFOA established the Canadian Award for Excellencein Financial Reporting Program to encourage Canadian localgovernments to go beyond the minimum requirement ofgenerally accepted accounting principles to communicatethe municipal government’s finances in a comprehensivemanner, based on a set of consistent reporting requirementsestablished for all local government.222019 Annual Report The Corporation of the City of BramptonThe City of Brampton's achievements demonstrated the highstandards in financial reporting supported by evidence oftransparency and full disclosure.The GFOA Distinguished Budget Presentation AwardThe City’s Approved 2019 Budget received ‘TheDistinguished Budget Presentation Award’ from the GFOAwhich is the only national awards program in governmentalbudgeting. This is the fourth year the City applied forand received the award and it represents a significantachievement due to the stringent requirements for effectivebudget presentation.Budget ProcessThe City’s budget is prepared by setting priorities that reflectstrategic objectives and service standards, while balancingthe need for prudent financial management. Priority settingtakes place at all levels of the organization by departmentalstaff, senior management, corporate leadership and,ultimately, City Council. During the budget process, publicinput received throughout the year was taken into account.This included calls and queries that come in to our staff,to interactions at events, surveys and other publicengagement opportunities.Separate capital and operating budgets are prepared inparallel, but are closely linked in recognition of the impactthat each has on the other.The City uses a full accrual basis (PSAB) budgetingmethodology. This methodology does not change how thetax levy is calculated, or how funding decisions are made byCity Council. The 2019 consolidated financial statementsreflect full accrual budget figures for comparison purposes.The capital budget methodology uses a capital contractbudgeting approach. This methodology only allowsbudgeting for contracts (purchase orders) with vendors thatare anticipated to be issued in the budget year. This alignsannual funding requirements with the City’s capacity todeliver capital projects.Budget submissions are consolidated and supported by theanalysis of budget drivers and justification of all proposednew initiatives. The Senior Leadership Team then determinesa recommended set of objectives and priorities for allocationof available resources. These proposed budgets andpriorities are considered by City Council in open publicmeetings, amendments are made as appropriate, and budgetapproval is granted.

The capacity to fund, deliver and manage the large quantityof new capital infrastructure needed to accommodate growthcontinued to be a major consideration in the 2019 budgetprocess. The 2019 budget reflected a balance betweenpriorities of the community and a fiscally responsibleapproach to running the City.Key budget objectives included in the 2019 budget were: Advancing the plan for Brampton’s next phase of growth Providing superior programs and services that contributeto quality of life Enhancing Transit, Fire and Recreation services Advancing Brampton’s strategic priorities Maintaining and developing corporate infrastructure Ensuring continued value for money in the provision ofall City services Insulating taxpayers to the extent possibleAudit CommitteeThe Audit Committee is a Committee of Council comprisingof seven Council members appointed by City Council. Itprovides a forum for communication among City Council,the external auditor, the internal auditor and management.The Audit Committee facilitates an impartial, objective andindependent review of management practices throughinternal and external audit functions. 220 million from user fees, fines, interest income and other 21 million from federal and provincial government grants 88 million from development levies and other restrictedcapital contributions (i.e. development charges andgovernment transfer payments for restricted purposesbeing applied to applicable capital works) 114 million of developer contributed tangiblecapital assetsTotal revenues in 2019 were 58 million higher than 2018increasing from 873 million to 931 million. Major factorscontributing to this increase include: The higher number of subdivisions assumed during2019 over 2018 from developers resulted in a 40 millionincrease in the developer contributed tangiblecapital assets. 7 million increase in Investment Income resulting fromhigher yields in bond portfolio and GIC investments as wellas higher average investment balances 10 million increase in Government Grants due to fundsreceived through Public Transit Infrastructure Fund (PTIF)ExpensesThe operating expenses totalled 820 million, including: General government - 82 million Protection to persons and property - 130 millionFinancial Results Transportation services - 361 millionThe City of Brampton’s accumulated surplus at the end of2019 was 4.3 billion (2018: 4.2 billion), of which 3.9 billionreflects investments in tangible capital assets. This increasereflects the City’s continuing commitment to inves

2019 Annual Report The Corporation of the City of Brampton 18 SENIOR LEADERSHIP TEAM as of June 2020 at the time of finalizing this report. David Barrick Chief Administrative Officer Peter Fay City Clerk Alex Milojevic General Manager, Transit Bill Boyes Fire Chief Derek Boyce Acting Commissioner, Community Services Joseph Pittari Commissioner,