Core Services Review

March 25, 2015 – 9:00AM

Special Budget Sub-committee Meeting

Brampton City Hall

Council Chambers

PAGE 1

Overview

1. Current Situation

2. Proposed Non-Union Wage ‘Freeze’

3. Core Services Review – Alternate Sustainable Approach to Wage

Cost Containment

4. Conclusion

PAGE 2

1. Current Situation

Perception

• Financial Review of the City of Brampton – Jim McCarter’s Report

• Section 7 – Managing Operating Expenses: Operating expenditures increasing at a

rate significantly in excess of Brampton’s growth

• Public Sector Disclosure Act – ‘Sunshine List’

• Perception that Brampton has an excessive amount of employees on the list

• Toronto STAR, Brampton Guardian, and The Globe and Mail articles

• Portraying Brampton Administration to be overpaid and bloated

Perception is that Brampton has a staff and salary issue

PAGE 3

1. Current Situation

Growth of Brampton’s Operation

PAGE 4

Year Full Time Staff Population Annual Expenses ($000s)

2005 1,868 422,600 $ 340,335

2006 1,947 436,000 $ 318,755

2007 2,097 452,039 $ 347,844

2008 2,238 487,230 $ 371,400

2009 2,441 497,680 $ 363,656

2010 2,521 504,600 $ 380,539

2011 2,593 523,911 $ 411,122

2012 2,658 540,145 $ 448,803

2013 2,736 557,800 $ 470,907 Notes:

- All data used in this spreadsheet sourced from Brampton’s Financial Information

Return (FIR) provided to the province annually.

1. Current Situation

PAGE 5

-

500

1,000

1,500

2,000

2,500

3,000

-

100,000

200,000

300,000

400,000

500,000

600,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Fu

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ime

Sta

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Po

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Exp

ense

s ($

000)

Growth of Brampton’s Operation

Population Annual Expenses ($000s) Full Time Staff

Notes:

- All data used in this graph sourced from Brampton’s Financial Information Return

(FIR) provided to the province annually.

1. Current Situation

2013 Public Sector Disclosure

• Brampton had 315 staff members on the ‘Sunshine List’ in 2013

• The distribution of salaries for staff on the list was:

• $100,000 to $119,999 = 204

• $120,000 to $139,999 = 70

• $140,000 to $159,999 = 20

• $160,000 to $179,999 = 14

• $180,000 to $199,999 = 5

• $200,000 plus = 2

PAGE 6

1. Current Situation

2013 Public Sector Disclosure

Notes:

* - City of Toronto numbers include Library, TCHC, & TTC

** - Population data courtesy of Statistics Canada census in 2011 and counts are municipal (“census subdivision”) not population dwellings

*** - Police Staff NOT included in the calculation of ‘Population : one (1) staff member of Sunshine List’.

PAGE 7

City

Population**

Number of Staff on

‘Sunshine List’

Population : one (1) staff

member on

‘Sunshine List’***

Police

Staff

City of Toronto* 2,615,060 6,811* 384 : 1

2,983

City of Hamilton 519,949 848 613 : 1 Region

City of Ottawa 883,391 1,149 769 : 1

1,039

City of London 366,151 362 1,011 : 1

192

City of Vaughan 288,301 258 1,117 : 1 Region

City of Mississauga 713,443 484 1,474 : 1 Region

City of Brampton 523,911 315 1,663 : 1 Region

1. Current Situation

PAGE 8

Notes:

- City of Toronto numbers include Library, TCHC, & TTC

* - Population data courtesy of Statistics Canada census in 2011

* - Population counts are municipal (“census subdivision”) not population dwellings

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

City ofToronto

City ofOttawa

City ofHamilton

City ofMississauga

City ofLondon

City ofBrampton

City ofVaughan

Nu

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‘Su

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ine

Lis

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Po

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*

2013 Public Sector Disclosure Number of Staff on ‘Sunshine List’ compared to Population

Population Number of Staff on Sunshine List

1. Current Situation

PAGE 9

Notes:

* - Population data courtesy of Statistics Canada census in 2011

* - Population counts are municipal (“census subdivision”) not population dwellings

1,663 : 1

1,474 : 1

1,117 : 1

1,011 : 1

769 : 1

613 : 1

384 : 1

0 200 400 600 800 1000 1200 1400 1600 1800 2000

City of Brampton

City of Mississauga

City of Vaughan

City of London

City of Ottawa

City of Hamiton

City of Toronto

Population*

2013 Public Sector Disclosure Population : one (1) staff member on ‘Sunshine List’

1. Current Situation

2013 Public Sector Disclosure

PAGE 10

‘Sunshine List’ - Salary Distribution CITY $100K - $119K $120K - $139K $140K - $159K $160K - $179K $180K - $199K $200K + TOTAL

City of Toronto 4,777 1,514 275 163 34 48 6,811

City of Ottawa 824 244 49 16 4 12 1,149

City of Hamilton 637 142 48 12 5 4 848

City of Mississauga 345 96 17 20 3 3 484

City of London 301 41 10 5 4 1 362

City of Brampton 204 70 20 14 5 2 315

City of Vaughan 165 52 20 10 4 7 258

‘Sunshine List’ - % Salary Distribution

CITY $100K - $119K $120K - $139K $140K - $159K $160K - $179K $180K - $199K $200K + TOTAL

City of Toronto 70.1% 22.2% 4.0% 2.4% 0.5% 0.7% 100%

City of Ottawa 71.7% 21.2% 4.3% 1.4% 0.3% 1.0% 100%

City of Hamilton 75.1% 16.7% 5.7% 1.4% 0.6% 0.5% 100%

City of Mississauga 71.3% 19.8% 3.5% 4.1% 0.6% 0.6% 100%

City of London 83.1% 11.3% 2.8% 1.4% 1.1% 0.3% 100%

City of Brampton 64.8% 22.2% 6.3% 4.4% 1.6% 0.6% 100%

City of Vaughan 64.0% 20.2% 7.8% 3.9% 1.6% 2.7% 100%

1. Current Situation

PAGE 11

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

$100K -$119K

$120K -$139K

$140K -$159K

$160K -$179K

$180K -$199K

$200K +

% o

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ist’

Salary Intervals

2013 Public Sector Disclosure ‘Sunshine List’ - Salary Distribution

City of Toronto

City of Ottawa

City of Hamilton

City of Mississauga

City of London

City of Brampton

City of Vaughan

1. Current Situation

Summary

• Our annual expenses are increasing at a comparable rate as the population

and full time employment in Brampton

• The number of Brampton staff on the ‘Sunshine List’ in 2013 was LOWER

when compared to neighbouring City’s

• Population per one (1) municipal staff member on the sunshine list was the

LOWEST compared to the seven City’s reviewed in 2013

• Brampton’s salary distribution of ‘Sunshine List’ staff in 2013 compares to

the seven City’s reviewed

PAGE 12

2. Non-Union Wage Freeze

Summary of Non-Union Staff

• Total Compensation (inclusive of Fringe Benefits and WSIB) for all non-

union employees

• = $99,591,633 (31.5% of total City Compensation)

• 2015 – 1.5% Cost Of Living Adjustment (COLA) increase to non-union staff

• = $1,493,875

• Impact on the 2015 Property Tax Bill

• = 0.41%

PAGE 13

2. Non-Union Wage Freeze

Impact of Non-Union Wage Freeze

• Immediate and sustainable staff moral impact

• Compression issue within 3 years: Pay reconciliation must happen

• Top performer competition

• Administration output will suffer

• Corporate culture impact

• Short term solution

PAGE 14

3. Core Services Review

Core Services Review

There is an alternative and sustainable approach that can be taken to achieve

wage cost containment – Core Services Review.

This can be achieved through the development of a ‘Staff Rationalization +

Reduction Strategy’ with responsible workforce planning.

PAGE 15

3. Core Services Review

Staff Rationalization + Reduction Strategy WORKFORCE PLANNING

• Sustainable reduction in staff salaries can be completed through a rigorous review of the

current administration

• Framework:

• Set a reduction target over a period of time: 12% by 2017

• Review all non-union positions with respect to core versus projected needs relative

to Brampton’s growth profile

• Staff reductions to come from:

• Attrition / No rehiring in vacancies of non-essential positions;

• Early retirements;

• Job cuts based on necessity or identified redundancies; and

• Elimination of poor performers.

• Executive Leadership Team (ELT) would conduct the review

• Provide Council with a reduction plan that would yield a greater value in savings to

the tax payer extending over the current term of Council and beyond

PAGE 16

3. Core Services Review

Staff Rationalization + Reduction Strategy WORKFORCE PLANNING

DRIVERS

1. Certain functions are no longer required, for example due to automation,

outsourcing, redundancy or no longer required (obsolete).

2. Workforce cannot be sustained in its current alignment due to budget

constraints.

3. The organization has undergone a shift in strategic direction and needs to

be realigned further with the new goals and objectives.

PAGE 17

3. Core Services Review

Balanced Administration

PAGE 18

Nu

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taff

Time

BASELINE

2014

• Retirees

• Non-essential positions

• Non-performers

GROWTH

• Essential positions

• Succession focused

• Forward thinking

• Performance Management

3. Core Services Review

Implementation Approach

PAGE 19

Recommend

Attrition Plan Voluntary Severance Performance Mgmt. Early Retirement

Analyze

Capacity Review Business Efficiency Essential Services

Identify

Staff Performance Priority Positions Vacancy Review

4. Conclusion

Conclusion

• A Core Services Review will yield a more significant impact on City

payroll reductions than a freeze in wages for non-union staff.

• Benefits Include:

• No compression issue

• Focused work force

• Aligns with our growth profile

• Supports performance measurement and succession planning

• Better corporate culture

• Strengthens reputation

• A natural outcome of recent corporate re-alignment that reduced

seven (7) departments down to four (4).

PAGE 20

4. Conclusion

Proposed Resolution

• With respect to report G3 proposed for the March 13, 2015 Special Meeting

of the Budget Sub-Committee, that recommendations made by staff be

approved and further direction be given to the Interim City Manager and the

Executive Leadership Team to formulate a core services review to reduce

the non-union administration by 12% by 2017 and present to City Council

with a detailed plan for approval and implementation.

PAGE 21

Core Services Review Staff Rationalization + Reduction Strategy

Thank You

PAGE 22