This update contains important information on the 2010 City budget and our key priorities.

2010 Business Plan and Budget

Amidst an uncertain economy, the City of Mississauga continues to uphold its reputation for strong fiscal management.

City Council works hard each year with staff to prepare an annual Business Plan and Budget that delivers on the priorities of our residents, maintains excellence in our service levels, invests in our future and provides the best value for your tax dollars. It is a tough challenge, but one that we meet head on. We listened to what you, our residents, told us were priorities – transit, improved winter maintenance and investing in our future. The 2010 Business Plan and Budget outlines how we will deliver on these priorities and where our resources will be used.

This year, the City will spend $548 million to deliver programs and enhance services that includes expanded transit services and extended hours of service in our libraries. We also introduced a property tax rebate program to assist low income seniors and low income persons with disabilities who own and occupy their own homes. These service enhancements, along with the maintenance of roads and parks, delivery of recreation programs and library services and emergency response are just some of the services you depend on us to provide.

Another $319 million will be spent on capital construction and rehabilitation to ensure our roads, buildings and parks remain in good repair. We are beginning construction on our Bus Rapid Transit (BRT) system and moving forward with the Hurontario Main Street Study which proposes Light Rail Transit (LRT) along

Hurontario Street from Port Credit to downtown Brampton. We are also delivering on our Strategic Plan, particularly in our downtown core. We have entered into a partnership with Sheridan College to bring a new campus to this area. The campus brings with it tremendous economic benefits and a vibrancy that will begin to transform our downtown.

We continue to build and grow in priority areas while we maintain the programs and services you have come to expect.

In order to support these initiatives, Council approved a tax increase of 2.3 per cent on the City’s portion of the property tax bill. As an example, this will mean an increase of $24.94 on a home assessed at $400,000.

It is important to know that not all your taxes pay for local services. Your tax bill is shared as follows:

28 per cent is paid to the City •

47 per cent is paid to the Region of Peel •

25 per cent is paid to the Province • for education

The City of Mississauga receives only 28 cents of every dollar a resident pays on their tax bill to fund all of the services and programs we deliver.

Infrastructure Spending

We were fortunate last year to be able to take advantage of new infrastructure funding as a result of the Federal and Provincial Governments’ Infrastructure Stimulus Fund (ISF) and Recreational Infrastructure Canada (RInC) program. We received $104 million from the Federal and Provincial Governments, and when combined with the City’s contribution of $65 million, we funded 138 projects.

One of the largest and most exciting of these projects is the revitalization of our Civic Centre and Central Library Square, which will be transformed into a vibrant, people-friendly destination. Other projects include two new indoor pools in Clarkson and Malton, four library renovations—Burnhamthorpe, Lakeview, Port Credit and Lorne Park branches—road resurfacing, new sidewalks, replaced noise walls, pathway paving and lighting, transit priority lanes and a stormwater pond.

While we are very pleased with the ISF and RInC programs, it is important to remember that this funding is also a one-time investment designed to stimulate the local economy and create jobs. We are still in need of a funding solution to address our long-term infrastructure deficit. Our current infrastructure is aging as it is across communities throughout Canada. Our infrastructure deficit is currently estimated to be at least $1.6 billion over the next 20 years. This is why it is so important for the City to continue to ask the Federal and Provincial Governments to work with municipalities to develop appropriate, sustainable long-term funding options.

As we continue to balance the needs of our taxpayers with the current economic condition, Council and staff will look for efficiencies in everything we do. Our Business Plan and Budget provides clear direction for moving Mississauga forward into the future. Our focus is always to deliver good value for your tax dollars.

Hazel McCallion, C.M. Mayor

Impact on Your 2010 Tax Bill $200,000 $300,000 $400,000 $500,000 Home Home Home Home

Region $19.04 $28.55 $38.07 $47.59 0.97% 0.97% 0.97% 0.97%

Education $0 $0 $0 $0 0% 0% 0% 0%

City-Operating $12.47 $18.71 $24.94 $31.18 0.63% 0.63% 0.63% 0.63%

Total $31.51 $47.26 $63.01 $78.77 1.6% 1.6% 1.6% 1.6%

Good Value for Your Property Taxes?Taxes in Perspective: Did you know that…Every time you: You pay: Buy a $25,000 car $3,250 in taxesBuy $50 in gas $16.60 in taxesEarn $60,000 $14,697 in taxesPay Annual CPP $2,163Pay Annual EI $747 Pay your City $1,131.74 property taxes (average per year)

Your 2010 residential tax bill consists of 3 separate components which are calculated individually. The City portion increased by 2.3 per cent, the Region’s portion increased by 2.1 per cent and there was no change in the education portion. If you compare your 2009 tax bill to your 2010 tax bill you will see that your total residential tax bill has increased overall by 1.6 per cent, ignoring any changes in market value reassessments.

The City of Mississauga’s infrastructure has been built largely through development charges. However, much of our infrastructure, which cost $3.5 billion, was built 15 to 20 years ago and will soon need to be replaced.

The projected cost to replace this infrastructure is $6.6 billion. Over the long term, the estimated cost representing wear and tear on items such as roads, buildings and bridges, is predicted to be $96 million per year. In 2010, the City of Mississauga will raise $18.7 million through property taxes for infrastructure renewal, leaving a gap of $77.3 million. The City’s reserves are being depleted in the near future, infrastructure renewal will require funding from other sources, such as external debt.

Sustainable long-term funding is needed. Without a permanent source of provincial and federal funds, Mississauga is limited to raising funds through property taxes and user fees or through service reductions. Large future provincial and federal deficits are being forecasted and so it is unlikely that the City can depend on other levels of government for adequate financial assistance to replace our infrastructure. The City is developing a long-term financial plan to provide for predictable tax increases that would ensure that the City’s assets are properly maintained.

Long-term provincial and federal gas tax revenue has funded some infrastructure renewal projects as well as some one-time funding programs such as the Federal and Provincial Governments’ ISF and RInC programs.

Library

Roads

Corporate Assets

Fire

Recreation & Parks

Transit

Business Services

Library

Roads

Corporate Assets

Fire

Recreation & Parks

Transit

Business Services

Library

Roads

Corporate Assets

Fire

Recreation & Parks

Transit

Business Services

Facts About Infrastructure Funding

Infrastructure Renewal Needs

2010 Infrastructure Deficit

2010 Tax RatesProperty Class City Region Education Total

Residential 0.277387% 0.463728% 0.241000% 0.982115%

Farm 0.069347% 0.115932% 0.060250% 0.245529%

Residential Tax Bill Breakdown

Estimated Annual Amortization Expense = $96 million

(in millions)

(in millions)

Beginning the implementation • of the Strategic Plan, development of the Economic Development Strategy and establishment of the Project Management Support Office

$138,400 for reopening of all library • branches on Sundays from Thanksgiving until Victoria Day

$100,000 allotted to windrow snow • removal pilot program for low income seniors and the disabled

$364,000 allotted to the tax rebate • program for low income seniors and the disabled

$326 million for the BRT project, • representing the largest investment in public transit in Mississauga’s history

$123.5 million invested in increasing • Mississauga’s transit system and transit infrastructure plus an additional $292.9 million to implement the revised Transit Ridership Growth Strategy and invest in ongoing service improvements (eight new buses, 49 replacement buses and 30,000 more service hours)

$37.3 million on the continued • investment in the repair and upgrade of existing roads and bridges in 2010 and $155.3 million over the next nine years

$1.3 million invested to increase • service levels for the removal and clearing of snow surrounding bus stops and shelters

$38.9 million for construction of • Garry W. Morden Fire Training and Mechanical Centre facility

2010 Municipal Election (the cost is • recovered from the Election Reserve)

$26.6 million over the next 10 years • to implement the Waterfront Parks Strategy

$52.3 million park and parkland • redevelopment over next 10 years

$10.1 million over the next 10 years • to expand the tree canopy and manage our forestry assets

$51.9 million on renovations to • two community centres, an arena, and the upgrade of two library branches over the next 10 years

What $100 of City Taxes Buys You

Library

Roads

Corporate Assets

Fire

Recreation & Parks

Transit

Business Services

2010 Capital Budget $319 Million (Gross)

The City’s 2010-2019 Business Plan and Capital Budget Includes:

Mississauga BudgetThe 2010 City budget includes a gross operating budget of $548 million and a gross capital budget of $319 million.

Highlights of the 2010 budget are available at www.mississauga.ca/finance

2009 Total Municipal Taxes Paid per $100,000 of Assessment

Source: BMA Consulting

2010 Budget Frequently Asked QuestionsWhat is the City doing to minimize tax increases?The City conducts a systematic review of all city services for economy, efficiency and effectiveness under its e3 program. The budget includes some service enhancements, achieved through the identification of budget reductions totalling $7.9 million. New revenues, totalling $2.8 million include those from parking fees, mortgage administration fees, additional gas tax revenues and assessment growth. The My Idea employee challenge program has helped to find some of the $1 million in efficiencies. Program reductions such as cutbacks in professional services and advertising, the shortening of spring and fall clean-up by one and two weeks respectively and the loss of 18.4 full-time equivalent positions has contributed another $4.1 million in budget savings throughout the City.

What are some of the cost pressures facing the City?The City has been able to extend some services without affecting other service levels that residents have come to expect. A windrow clearing program and a tax rebate program for

our disabled and low income senior residents is being offered. As well, library hours will be extended to include Sunday service at all branches during the period from October to May. More funding has also been added to increase forestry services. As noted earlier, the City faces a large funding deficit for its infrastructure.

How has Infrastructure Stimulus Funding (ISF) and Recreation Infrastructure Canada (RInC) funding helped the City?The ISF and RInC funding has allowed the City to undertake infrastructure projects that were “shovel-ready” and as a result, has enabled the City to start working on infrastructure projects earlier than would normally have been possible. This funding has allowed the City to catch up on a backlog in capital maintenance/rehabilitation.

How do you apply for the property tax rebate program and who qualifies?This program is available for those 65 years of age and over receiving a Guaranteed Income Supplement or for disabled persons receiving income support under the Ontario Disability Support Program Act. Applications are

available on-line, by mail or can be picked up in person at the Tax office. The application deadline is December 31st of the year in which the tax rebate is claimed. Call 3-1-1 if you have any questions about the program.

How will Current Value Assessment be phased in?

The Government of Ontario has made a number of changes to the property assessment system that went into effect in the 2009 property tax year. These changes include the introduction of a four-year assessment update cycle and a phase-in of assessment increases based on a January 1, 2008 valuation date. Property values are updated on a four-year cycle with the next assessment update in 2012 for taxation years 2013-2016. To provide an additional level of property tax stability and predictability, market related assessment increases are phased in over the four year period between reassessments, with one quarter of the assessment change being applied in each of the four years.

2010 constitutes the second year of the plan which will continue to be phased in over the next two years.

132-09

Canadian Tax DistributionApproximately 7 Cents of Every Dollar Goes to CitiesApproximately 7 cents of every dollar that you pay goes to support municipal services. The largest recipient of your tax dollars is the Federal Government, followed by the Provincial Government. If you consider the scope of services that you receive from the City and the Region of Peel, it becomes increasingly clear that municipalities are required to fund an extensive list of programs with a very small portion of the overall tax dollar. These are the same services that touch you closest to home and affect your quality of life on a daily basis.

Library

Roads

Corporate Assets

Fire

Recreation & Parks

Transit

Business Services

2009 Breakdown of Average Family’s Tax BillSource: The Fraser Institute’s Canadian Tax Simulator, 2009