Region of Peel Annual Report 2015 · mixture of urban, suburban, rural, agricultural and natural landscapes. Peel is governed by the Regional Chair and a 24-member Council representing

2015 ANNUAL FINANCIAL

REPORTThe Regional Municipality of Peel, Ontario, Canada

for the year ended December 31, 2015

Table of ContentsIntroductory Section

4 Region of Peel: Working for You5 Message from the Regional Chair and Chief Executive Officer and Chief Administrative Officer6 Executive Leadership Team7 2014 - 2018 Peel Regional Council8 2015 Accomplishments10 2015 Awards12 Message from the Treasurer and Director, Corporate Finance

Financial SectionConsolidated Financial Statements 34 Auditor’s Report36 Consolidated Statement of Financial Position37 Consolidated Statement of Operations38 Consolidated Statement of Change in Net Debt39 Consolidated Statement of Cash Flows40 Notes to the Consolidated Financial Statements

Debt Retirement and Sinking Funds62 Auditor’s Report64 Debt Retirement and Sinking Funds Statement of Financial Position65 Debt Retirement and Sinking Funds Statement of Operations66 Debt Retirement and Sinking Funds Statement of Cash Flows66 Debt Retirement and Sinking Funds Statement of Change in Net Financial Assets67 Debt Retirement & Sinking Funds Notes to the Financial Statements

Trust Funds72 Auditor’s Report74 Trust Funds Statement of Financial Position74 Trust Funds Statement of Financial Activities and Fund Balance74 Trust Funds Statement of Cash Flows75 Trust Funds Notes to the Financial Statements

Five-Year Financial and Statistical Review78 Five-Year Financial Review82 Five-Year Statistical Review

Concluding Section84 Region of Peel: At a Glance86 Peel's Largest Employers87 Region of Peel Partners

List of AcronymsGTA Greater Toronto AreaOCWA Ontario Clean Water AgencyOMERS Ontario Municipal Employee Retirement System

PHC Peel Housing CorporationPSAB Public Sector Accounting BoardWSIB Workplace Safety and Insurance Board

2015 ANNUAL FINANCIAL

REPORTPrepared by the Corporate Finance Division, Finance

Department and the Communications Division, Service Innovation, Information and Technology Department

The Regional Municipality of Peel, Ontario, Canada for the year ended December 31, 2015

Region of Peel: Working for You

On January 1, 1974, the act to establish the Regional Municipality of Peel came into effect. The County of Peel was restructured as the Regional Municipality of Peel. Ten constituent County municipalities were combined into the three municipalities of the City of Brampton, City of Mississauga and the Town of Caledon. Peel’s incorporation is based on the principle that certain community and infrastructure services, such as community health, social assistance, water and sanitary sewers and waste collection and disposal, are more cost effectively administered over a larger geographic area.

Peel Region has experienced rapid growth since its inception. This has significantly altered the landscape towards a denser urban fabric, with immigration playing a key role in this development. Peel includes a diverse mixture of urban, suburban, rural, agricultural and natural landscapes.

Peel is governed by the Regional Chair and a 24-member Council representing its member municipalities. The 25 members of Council started serving their four-year term on December 4, 2014 and will continue to November 30, 2018.

Peel serves 1.44 million residents and approximately 133,000 businesses. Peel is the second-largest among Greater Toronto Area municipalities and has a diverse cultural heritage, extensive rural areas and dynamic urban centres. Peel delivers essential services such as:

• Affordable Housing

• Early Learning and Childcare

• Long Term Care

• Ontario Works

• Paramedic Services

• Police Services

• Public Health

• Transportation (roads and accessible transportation)

• Waste Management

• Water and Wastewater

• Heritage, Arts and Culture

4 ANNUAL FINANCIAL REPORT

On behalf of Peel Regional Council and the employees of the Region of Peel, it is our pleasure to provide you with the 2015 Annual Financial Report.

With a population of 1.44 million residents and over 133,000 businesses, Peel is Canada’s second largest municipality. As a growing and diverse municipality, we recognize the importance of maintaining a healthy financial profile in order to meet the current needs and future needs of our community.

Through our prudent and planned approach to our Long Term Financial Planning Strategy, we are proud to say that the Region of Peel remains on a solid footing as evidenced by our Triple-A credit rating. This means that credit rating agencies have looked at our finances and agreed that we are well positioned to meet our financial commitments. To the taxpayer, this means that the Region receives the best possible financing rates for large capital projects, thus lowering the long-term costs associated with these projects and minimizing our overall financial risk.

In 2015, we engaged with our community and asked them to imagine what Peel would look like in 2035. Thousands of people participated. These conversations highlighted the important issues facing Peel and helped us chart a 20-year strategic plan. We used the insights from this extensive engagement to develop a new vision, mission, and brand for the Region of Peel.

Our vision is Community for Life. This means that Peel is a community where people choose to live for their entire lives because the quality of life is second to none.

Our mission is to work with our residents, and community and government partners to create a healthy, safe and connected community.

The community consultation also resulted in a shift in our brand from Working for You to Working with You. This represents a stronger commitment to working collaboratively with residents, clients, community partners and other levels of government.

Strong financial planning ensures that we are well-positioned to continue to adapt to the needs of the community and move Peel closer to its vision of a “Community for Life.”

To learn more about the Region of Peel, our future vision and our financial statements, we invite you to visit us at peelregion.ca and follow us on Twitter (@regionofpeel).

Frank Dale David SzwarcRegional Chair and Chief Executive Officer Chief Administrative Officer

REGION OF PEEL 5

Message from the Regional Chair and Chief Executive Officer and Chief Administrative Officer

PEEL CITIZENS 1.44 million residents

REGIONAL COUNCIL Regional Chair Frank Dale and 24 Councillors

EXECUTIVE OFFICE Chief Administrative Officer David Szwarc

6 OPERATING DEPARTMENTS Corporate Services; Finance; Health Services; Human Services; Public Works; Service Innovation, Information and Technology

Corporate Organization Chart

Executive Leadership Team

David SzwarcChief Administrative Officer

Janice Sheehy Commissioner of Human Services

Janette Smith Commissioner of Health Services

Stephen VanOfwegen Commissioner of Finance and Chief Financial Officer

Gilbert Sabat Commissioner of Service Innovation, Information and Technology

Lorraine Graham-Watson Commissioner of Corporate Services

Dan Labrecque Commissioner of Public Works


2014 - 2018 Peel Regional Council

Frank DaleRegional Chair

George Carlson Bonnie Crombie Johanna Downey Chris Fonseca Grant Gibson

Nando Iannicca Jennifer Innis Linda Jeffrey

Annette Groves

John Kovac Matt Mahoney Sue McFadden

Martin Medeiros Gael Miles Elaine Moore Michael Palleschi Carolyn Parrish Karen Ras

Pat Saito John Sprovieri Ron StarrBarb Shaughnessy Allan Thompson Jim Tovey

REGION OF PEEL 7

2015 Accomplishments

Peel Council and staff are proud of our 2015 accomplishments. These are some examples of our commitment to continuously improve client satisfaction while delivering citizen-focused services.

• The Region of Peel’s Strategic Plan, approved during 2015, represents a first ever 20-year plan. Regional Council approved a shift from a four-year term of Council-focused plan, to a 20-year plan to better position Peel to meet the changing needs of the community and to rise to the challenges of the future. While the development of past Strategic Plans have involved community outreach, engagement for the 2015-2035 Strategic Plan was the most extensive in the Region’s history. Throughout the spring and summer of 2015, thousands of community members and staff were asked what they could imagine for Peel in 2035.

• The Region subscribes to Focus GTA which is a semi-annual syndicated research initiative conducted by Environics Research Group. The research gauges Peel residents' perceptions of government performance, public policy and current issues of the day. The survey is administered during the spring and fall of each year. The fall 2015 survey shows that 73 per cent of Peel residents are satisfied with their regional government.

• Peel implemented bi-weekly cart-based waste collection during 2015, effective for January 2016. More than one million carts were delivered to Peel residents in the fall of 2015. These pest-resistant carts are easier to wheel to the curb and prevent blowing litter. The weekly organics and the bi-weekly garbage and recycling alternating pick-ups will result in waste collection cost savings, a reduction of the amount of waste going to the landfill and a reduction in greenhouse gas emissions due to fewer collection vehicles on the road.

• Peel maintained its Triple-A credit rating. S&P Global affirmed their AAA rating based on exceptional liquidity and a very strong economy. Moody’s Investors Service Aaa rating is from a track record of consistent, positive fiscal outcomes; the Region’s growing, diversified economy and strong population growth as well as prudent and conservative fiscal policies.

• A Development Charges Background Study was conducted during 2015. Through working collaboratively with staff, Council, industry representatives and other municipalities, a new Development Charges By-law was approved by Regional Council in the fall of 2015.

• Peel Council has made strides in recent years to support creative solutions and initiatives that meet the wide-ranging needs of Peel residents. As a result of continued regional, provincial and federal investment, there are fewer households waiting for housing subsidy in Peel. The housing needs of the Peel community are diverse and complex and continue to evolve, as Peel is expected to grow by 20,000 people per year until 2041.


• Regional Council approved the creation of a Task Force to develop and report back to Council on theterms of reference and approach for a review of the governance of the Region of Peel; the options forelection of the Regional Chair; and the composition of Regional Council. The Task Force will consist of thethree area Mayors, the Regional Chair, the Chief Administrative Officers of Peel, Cities of Brampton andMississauga, the Town of Caledon and the Regional Clerk.

• In March of 2015, Regional Council approved the implementation of a curbside battery collection programbeginning in 2016. The program will consist of two curbside single-use battery collection events per year.

• The United Way of Peel Region thanked Region of Peel staff and Peel Regional Police for their extraordinaryleadership and commitment to the Peel community in raising funds for the United Way. In 2015, theRegional campaign raised over $436,000 and is the second largest United Way contributor in Peel. Thisassisted over 187,000 individuals during 2015 to make a substantial difference in their lives.

REGION OF PEEL 9


2015 Awards

During 2015, Peel Council and staff received numerous awards for leadership and innovation in municipal government. These are some examples of the 2015 awards:

• The Region of Peel Economic Study: Water and Wastewater Infrastructure Investment Beyond 2031 Study received a 2015 Canadian Institute of Planners Award for planning excellence. The CIP recognizes twelve urban planning-related projects annually based on their innovation, impact on the profession, implementation potential and overall presentation.

• The Region of Peel has been named the winner of the Solid Waste Association of North America 2015 Bronze Excellence Award in the Recycling Systems category. Recipients of this excellence award represent the best solid waste management practices in North America.

• In February 2015, the Region was awarded the inaugural Ontario Power Authority Energy Manager Excellence Award for the greatest reduction in energy use among energy managers in Ontario. This award symbolizes Peel’s commitment to effective energy management which supports the goal of being a financially and environmentally sustainable municipality.

• In May 2015, Regional Council congratulated Carolyn Clubine, Director, Senior Services Development, on her receipt of the Norma Rudy Award from the Ontario Association of Non-profit Homes and Services for Seniors. The recipient of this award embodies the commitment and dedication exemplified by Norma Rudy whose contributions have shaped, defined and improved the long-term care and retirement non-profit sector.

• In April of 2015, the 2014 Employees’ United Way Campaign was honoured with the Labour Award of Distinction for the Public Sector, recognizing CUPE 966, OPSEU 277, OPSEU 280, UFCW 175, and ONA. This award is presented to a workplace and its union members that have demonstrated a commitment to community and to furthering the values shared by United Way.

• Peel staff received the AMCTO Accessibility for Ontarians with Disabilities Champion Award for demonstrated leadership in accessibility, disability issues, passion, and commitment in the promotion and awareness of accessibility and inclusiveness in the community.

• Peel Regional Police was recognized as one of Greater Toronto's Top Employers for 2015 by Mediacorp Canada. This announcement follows the same distinction earned by Peel Police for 2012 - 2014.

• Peel Regional Police was named one of Canada's Top Employers for Young People for 2015 by Mediacorp Canada. This annual award recognizes organizations that lead the nation in attracting and retaining younger employees. This is the fourth straight year that Peel Regional Police earned this coveted distinction.

REGION OF PEEL 11

• The Order of Merit of the Police Forces is a fellowship of honour based on the highest qualities of citizenship, service to Canada, to the police community and to humanity at large. Deputy Chief Chris McCord received the Member of the Order of Merit in 2015.

• The Region of Peel‘s 2014 Annual Financial Report won the Government Finance Officers Association Award for Financial Reporting for the fifteenth consecutive year. This award is considered the highest form of recognition for excellence in government accounting and financial reporting.


Message from the Treasurer and Director, Corporate Finance

The Region of Peel is pleased to provide this report on the Region’s financial performance for the year ended December 31, 2015. In addition to the consolidated financial statements, this report discusses the Regional economic environment, Peel’s financial management practices, including the Long Term Financial Planning Strategy and Peel’s business planning process, and provides highlights of the Region’s financial results for this fiscal year.

2015 was an exciting year for the Region. Following the election of a new Council in the fall of 2014, Regional Council approved the Region's new 20-year Strategic Plan and four-year Term of Council Priorities. Through facilitated Council discussions and community engagement activities, the Region’s new Strategic Plan provides a new long-term direction that has, at its centre, a shared sense of community to achieve a positive future for the residents and businesses in Peel Region.

Peel’s Finance department plays a key role in achieving the priorities identified in the Strategic Plan. One of the Term of Council Priorities focuses on the need to plan and manage growth, as Peel is considered to be one of the fastest growing regions in Ontario. This is evident in the continued population growth that Peel has seen in recent years, which is forecasted to reach 1.77 million by 2031 and is estimated to grow by an average annual increase of 1.4 per cent, or by approximately 20,400 persons. As supported by the newly appointed Council, the Long Term Financial Planning Strategy, with a focus on the long-term financial sustainability of Regional services and maintaining the Region’s high quality credit rating, continues to address the increasing financial pressure of Peel’s growing and evolving community.

Peel continues to prudently manage financial resources, while investing in the new capital infrastructure necessary to support a growing diverse community. The need continued for key Regional infrastructure like water, wastewater and roads to be constructed well in advance of development. In order to ensure Peel’s capital program and growth plans are sustainable, a Development Charges Background Study was conducted during 2015. Through working collaboratively with staff, Council, industry representatives and other municipalities, a new Development Charges By-law was approved by Council in the fall of 2015.

Similar to last year, the issuance of long-term debt was not undertaken to fund the growth capital, leading to an improvement in the Region’s net long-term debt position. Based upon high levels of liquidity and positive management actions regarding long-term financial and budgetary planning, the Region maintained its Triple-A, stable credit rating. The Region is one of the eight highest ranked Canadian municipalities with either Moody’s Investors Service or Standard and Poor’s Global Ratings in 2015.

The Regional Economy

Strong positive changes were observed in Peel’s economy in 2015. Most growth indicators showed improvements relative to the preceding year. These included indicators such as total population, Peel’s total taxable assessment base, the number of business establishments, the total value of building permits issued, the total number of housing starts and prime labour market indicators such as the unemployment rate.

The following are examples of economic indicators that registered positive changes:

• Population: Estimated total population in Peel increased to 1.44 million persons;

• Taxable assessment base: Peel’s total taxable assessment base continued to increase, posting a growth of 1.36 per cent;

• Business establishments: Total number of businesses increased by 7,118 establishments or 5.6 per cent to 133,268 establishments;

• Total value of building permits: The total value of building permits issued, increased by 21.7 per cent in 2015 to reach $4.41 billion;

• Housing starts: The total number of housing starts recorded in Peel increased by 75.8 per cent to 8,100 units;

• Labour force and employment: Total labour force in Peel Region increased by 149,700 positions or by 22.4 per cent to reach approximately 817,700 persons. During the same period, total employment increased by 141,000 positions or by 23.0 per cent. At this level, Peel’s employed labour force was well above its pre-recession level of 650,200 persons in 2007; and

• Unemployment rate: The stronger increase in total employment relative to total labour force resulted in a reduction in Peel’s unemployment rate from 8.1 per cent in 2014 to 7.7 per cent in 2015.

These positive changes observed in Peel in 2015 were a result of a number of factors. Peel’s key strategic advantages, such as its location and well-developed transportation network, continued to make Peel a desirable destination for residents and businesses. In addition, the update of the Region’s Development Charge (DC) By-law spurred growth in the applications for building permits ahead of the update, which triggered increases in the value of building permits issued. Due to the continuation of an accommodative macroeconomic environment, growth in both building intentions and actual construction activities continued to occur, resulting in a higher number of housing starts than in prior years.

REGION OF PEEL 13


Peel’s long-term economic prospects remain positive as there are key factors that will continue to support a vibrant and growing Peel economy over the long term.

These factors include:

• Key strategic advantages: Strategic advantages in Peel such as its location in the vibrant economic hub of the Greater Toronto Area (GTA), and close to the large United States (US) market, the highly developed transportation network, and a young and educated workforce remain and will continue to support economic growth in Peel. These are attributes that will continue to attract both residents and businesses to locate in Peel Region.

• Diversified economic base: With the long-term contraction in the manufacturing sector, Peel’s economic base is now more diverse and better positioned to withstand economic shocks, should they occur in the future.

• Continuation of a stable and positive macroeconomic environment: Price stability and a low interest rate environment which has existed in Canada over the past few years are expected to continue throughout 2016. This, as the thrust of monetary policies remain focused on creating an environment which is conducive to a return to robust growth.

• The reduction in the price of crude oil and the depreciation of the Canadian currency: The reduction in the price of crude oil on the international market has resulted in cost reductions for businesses in oil importing regions like Ontario and Peel. At the same time, the Canadian dollar has depreciated by over 47 per cent in 2015, making Canadian exports more competitive on the international market. These factors, combined with an improving US economy are likely to create a firm basis for growth in Canadian exports. As a key export hub of the Canadian economy, Peel’s economy is expected to be a prime beneficiary of these positive macroeconomic developments.

As such, Peel Region is expected to continue to experience growth particularly in areas such as population, households and employment over the long term.

The following is further discussion on some of the prime economic indicators evident in Peel Region during the year.

REGION OF PEEL 15

Total Population

Peel is the second-largest among GTA municipalities, with population climbing to an estimated 1.44 million as Mississauga, Brampton and Caledon all registered higher population levels.

Total Taxable Assessment Base

The total taxable assessment base increased by 1.36 per cent, comparable with the growth of 1.70 per cent achieved in 2014. Growth was led by the residential sector where growth accelerated by 1.44 per cent in 2015 compared with 1.88 per cent in 2014. Growth in the non-residential sector increased by 1.06 per cent compared with the 1.07 per cent decline registered in 2014. All three Peel local municipalities contributed to the growth observed.

201420132012

163.6 167.2 170.146.8 46.4 46.8

201.4 213.6 216.9

2015

173.347.3

220.6

2016

175.8

47.8

223.6

0

50

100

150

200

250

Taxable Assessment from 2012 to 2016Average annual growth = 1.57% on total normalized assessment

($ Billions)

Source - Municipal Property Assessment Corporation, final roll for opening taxation year

Population from 2011 to 2015 with Forecast to 20311.76% Average Annual Growth

(Thousands)

Caledon Brampton Mississauga Peel (forecast)

2031 F

1,770

2011

747

554

1,36362

2012

751

567

1,38264

1,407

2013

756

586

65

0

500

1,000

1,500

2,000

1,429

2014

760

602

67

1,443

2015

764

611

68

Peel’s Business Sector

In 2015, a total of 133,268 classified business establishments were located in Peel. This represented an increase of 7,118 businesses, up 5.6 per cent compared with the number of businesses recorded in 2014. Growth among service sub-sectors remained broadly consistent with previous trends. The number of businesses in transportation and warehousing continued to increase with an additional 1,880 new businesses between 2014 and 2015.

Other sectors that registered relatively strong growth in business establishments in 2015 included: finance and insurance (up 9.2 per cent or 522 businesses), retail trade (up 7.9 per cent or 651 businesses), real estate rental and leasing (up 7.2 per cent or 1,228 businesses) and healthcare and social assistance (up 6.9 per cent or 426 businesses). The only service sub-sector to register a decline in the number of business establishments in 2015 was management of companies and enterprises, which had 44 fewer business establishments (-1.6 per cent).

The total number of business establishments in the goods producing sector stood at 18,218 in 2015, representing a growth of 2.8 per cent relative to 2014. All sub-sectors in the goods producing sector, except manufacturing, registered growth. The


0

20

40

60

80

100

120

Peel Business Establishments by Major Categoryfrom 2011 to 2015

Services Goods producing

(Thousands)

2011

14.2

73.6

2012

14.1

75.5

2013*

15.9

88.6

2014*

17.7

108.4

2015*

18.2

115.1

140

total number of business establishments in manufacturing declined by 11 businesses (-0.2 per cent).

With relatively stronger growth in the number of business establishments in the service sector, the shift from the goods producing sector to services continued in 2015.

Source - Statistics CanadaNorth American Industrial Classification System (NAICS)* 2013 change in Statistics Canada methodology to incorporate businesses which are now required to auto-code a NAICS in order to record their tax form information with the Canada Revenue Agency.* 2014 methodology adjusted to be consistent with 2013* 2015 methodology adjusted to be consistent with 2014 and 2013

REGION OF PEEL 17

2,763

887

2012

1,446

1,157

2013

1,862

781

2011

2,142

1,483

2014

3,086

1,326

20150

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

5,000

Building Permits Issued from 2011 to 2015($ Millions)

Non-residential Residential

Building Permits

Building intention in Peel, as measured by the total value of building permits issued, improved in 2015. For the full year, the total value of building permits issued in Peel increased by 21.7 per cent to reach a total of $4.4 billion. This was the highest value of building permits ever issued in Peel. This surpassed the previous record level of $4.2 billion issued in 2004.

There was relatively strong growth in the total value of building permits issued in 2014 (39.3 per cent) and 2015 (21.7 per cent). These were responses to changes in the DC By-laws in Peel. In 2014, the DC By-laws for the three municipalities were updated, and in 2015, the DC By-law for the Region of Peel was updated. Prior to these updates, developers brought forward building permit applications resulting in higher building permit values in Peel. The DC By-law for Peel Region was updated in 2015, and implemented on October 5, 2015. The implementation of a new or updated DC By-law is generally associated with increased DC rates and typically influences developers to bring forward building permit applications to avoid the increased rates. This influenced the growth in the value of building permits issued in Peel in 2015.

Housing Starts

Given the relatively strong increases in the value of building permits issued in 2014 and 2015, the relatively strong increase in the number of housing starts in Peel in 2015 was not unexpected. In 2015 the total number of housing starts in Peel increased by 75.8 per cent. This was one of the strongest annual growth rates for housing starts registered in Peel. This pushed the number of housing starts to comparable levels registered in 2006 when the number of housing starts stood at 8,375 units. At 8,100 units, the number of housing starts registered in 2015 also surpassed the 10-year annual average starts (of 7,303 units) in Peel prior to the start of the market boom in 2001. This was the first time since 2006 that the number of housing starts in Peel exceeded 8,000 units. The increase in starts observed in Peel in 2015 reflected positive changes in both the single and multiple segments of the market, as well as in all three Peel municipalities. The total number of multiple units increased by 112.5 per cent, moving from 2,376 units in 2014 to 5,049 units in 2015. Single starts grew by a 36.8 per cent in 2015 to reach 3,051 units. This was the highest number of single units recorded in Peel since 2008.


2014

4,607

2015

8,100

Housing Starts from 2011 to 20156,446 Annual Average

2011

6,423

2012

6,803

2013

6,298

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

REGION OF PEEL 19

Labour Market Conditions

In 2015, Peel’s labour market registered the strongest performance in over 15 years. Total labour force (which describes the number of Peel’s residents who are willing, able and available for work, and who are either employed or searching for work) increased by 22.4 per cent, or by 149,700 positions, to reach 817,700 persons. Over the same time period, total employment (the number of Peel’s residents who found jobs) increased by a proportionately larger 23.0 per cent, or by 141,000 positions. This pushed total employment in Peel’s labour market to 754,600 persons. At this level, Peel’s employed labour force was well above its pre-recession level of 650,200 persons in 2007.

The growth in employment in Peel’s labour market contributed to a reduction of Peel’s annual average unemployment rate from 8.1 per cent in 2014 to 7.7 per cent in 2015. This was the lowest unemployment rate in Peel since a rate of 6.6 per cent in 2008.

Other labour market indicators also improved between 2014 and 2015. Peel’s employment rate (the proportion of working age population who are employed) increased from 62.7 per cent in 2014 to 63.3 per cent in 2015, while the participation rate (the proportion of working age population who are in the labour market) increased from 68.2 per cent to 68.6 per cent respectively over the same period. Notwithstanding these improvements, the employment and participation rates remained below pre-recession levels of 66.9 per cent and 71.9 per cent respectively.

2011

139.6

458.1

2012

128.8

485.6

2013

135.1

480.6

2014

126.5

487.1

2015

151.1

603.5

0

100

200

300

400

500

600

700

800

Services producing Goods producing

Employed Labour Force from 2011 to 2015(Thousands)

597.7614.4 615.7 613.6

754.6

Unemployment Rate from 2011 to 2015

0

2%

4%

6%

8%

10%

2012

9.0%

2013

8.9%

2011

8.4%

2014

8.1%

2015

7.7%

Source - Labour Force Survey, Statistics Canada

Source - Labour Force Survey, Statistics Canada

Employment Profile

2011 2012 2013 2014 2015 Change 2015/2014Total labour force 652.6 675.0 675.6 668.0 817.7 22.4%Employed labour force 597.7 614.4 615.7 613.6 754.6 23.0% Full-time 503.2 515.0 515.7 505.9 638.4 26.2% Part-time 94.5 99.4 100.0 107.7 116.2 7.9%Unemployed 54.9 60.6 59.9 54.4 63.1 16.0%Unemployment rate (%) 8.4 9.0 8.9 8.1 7.7 -4.9%Employment by Industry Goods producing 139.6 128.8 135.1 126.5 151.1 19.4% Services producing 458.1 485.6 480.6 487.1 603.5 23.9%Source - Labour Force Survey: Statistics Canada

Financial Management, Control and Reporting

Audit and Risk Committee

The Audit and Risk Committee was created in 1995. Its mandate is to fulfill the dual roles of ensuring that corporate financial reporting and the annual financial statements meet all legislative requirements and are credible and objective, and ensuring that responsibilities for sound management practice and management control are fulfilled by management and staff.

The objective of the Audit and Risk Committee is to assist Regional Council and associated Boards and Agencies in the discharge of their governance, accountability and controllership responsibilities by advising that risks are being appropriately addressed through strong governance, a risk/control and compliance framework, appropriate stewardship and an effective internal audit activity.

This includes reviewing and advising on:

• The integrity, quality and transparency of the Region’s financial, management and operational information;

• The effectiveness of the financial and management reporting processes;

• The effectiveness of risk management and control processes and practices;

• The performance of the internal audit activity and assessing the effectiveness of the external audit function; and

• Ethical business conduct and compliance with the Region of Peel’s Employee Code of Conduct.

The Committee is comprised of six Members of Council: the Regional Chair (Ex-officio), a Chair, Vice-Chair and three other Regional Councillors. There must be a Member of Council from each of the three local municipalities. The term of the appointment is for a period of 24 months.


Financial Management Practices

Long Term Financial Planning Strategy

Peel’s Long Term Financial Planning Strategy (“Finance Strategy”) provides a long-term perspective to guide decision making in support of Peel’s overall financial condition. The Finance Strategy builds on existing financial planning practices and applies a more disciplined comprehensive and integrated approach that identifies and manages the risks to the Region of Peel’s long-term financial sustainability and credit rating. The Finance Strategy demonstrates the required balance between three pillars: financial sustainability, financial vulnerability and financial flexibility. The Finance Strategy also includes nine financial principles which help support the balancing of the three pillars. The nine principles are articulated on page 23 under the Business Planning Process section. The Finance Strategy utilizes a model to forecast 10-year tax and utility rate impacts based on changes to economic and demographic drivers.

Financial Management By-Law

As part of the Finance Strategy, the Peel Financial Management By-law was established, with a focus on the nine financial principles as a guide to help with decision making, monitoring and reporting to Regional Council on the execution of the Finance Strategy. This includes an annual update to Council on the Region’s Financial Condition Scorecard, which is used to assess Peel’s financial condition using key financial performance indicators.

Development Charges By-Law Update

The Finance Strategy contains a financial principle that ensures users pay where appropriate. This is supplemented by Regional Council’s endorsement of the principle growth pays for growth. The Development Charges Act, 1997 sets out the

framework within which Ontario municipalities are permitted to levy development charges against new development to fund the cost of growth-related infrastructure. Peel’s DC By-law contains specific rate and other information on how Development Charges are levied in Peel.

Peel’s infrastructure needs are growing, mainly due to an increasing population and the corresponding need for a generational increase in the water and wastewater system infrastructure. Peel also manages the lag between construction of the infrastructure and the collection of revenue when property is developed. Since the passing of the 2012 DC By-law, Regional Council has been actively managing growth related borrowing through the annual budget review process. Regional Council and staff have been monitoring all major capital projects in relation to the timing of actual project expenditures in the budget to support the appropriate timing and phasing of work and to inform debt financing needs.

In 2014, Regional Council commissioned a Development Charge Background Study to calculate new Development Charge rates and updated Development Charge policies where required. In the third quarter of 2015, a new Development Charge By-law was approved by Regional Council to ensure Peel’s growth capital program is sustainable. One of the key policy changes in the new DC By-law is to allow for the collection of DCs for hard services (roads, water and wastewater) at the time of subdivision agreement for most residential development. These were previously collected at the time of building permit issuance. This will help shift the financing risk from the Region to the development community.

REGION OF PEEL 21

Other Practices

In addition to the Financial Management By-law and Development Charges By-law, the financial management and control of the Region of Peel is governed by the Purchasing By-law and various other by-laws and financial management policies that establish the objectives, responsibilities, controls and reporting requirements for risk management, financial planning, debt/investment management, and revenue and expenditure control. Another key area of financial management is the Council approval of the Operating and Capital Budgets as described in the Business Planning Process section.

Corporate Asset Management

The Region’s asset management program supports two key financial principles in the Finance Strategy – ensure the capital plan is sustainable; and maintain existing assets to protect service delivery. The program provides an organizational perspective on the state of the infrastructure and gives staff and Council the ability to anticipate emerging risks and opportunities within Peel’s asset portfolio and undertake proactive measures to address the issues. The program uses risk management techniques and lifecycle strategies to provide an optimal balance between the costs to address asset needs to support public services with the affordability to do so.

The program has been implemented for all of the Region-owned capital assets and excludes assets owned by Peel Housing Corporation, Peel Regional Police and land assets.

The asset management program in Peel is specifically focused on the following:

• Planning and prioritization of infrastructure needs across the organization;

• Long-term sustainability of assets and services;

• Transparency of the annual budgets and forecasts; and

• Support for the capital planning process.

The Region’s assets have an estimated replacement value of $23.4 billion. Therefore, it is important to view the Region’s infrastructure investment needs beyond the 10-year capital plan horizon to a 20-year view to ensure the long-term financial sustainability of the capital utility rate and property tax supported reserves at rates the public can afford. This also helps to ensure that the Region of Peel can efficiently and effectively manage its assets to meet the service needs of its residents, while ensuring the sustainability of its infrastructure for the demands of the future.

Currently, the adequacy of the tax supported capital reserves are assessed based on a 10-year period. The data needed to assess the adequacy of the tax reserves over a 20-year period will be collected over the next couple of years. However, the adequacy of the utility rate capital reserves over the 20-year period have been assessed during the year and recommended rate increases have been captured in the 2016 Budget and these account for $20.6 billion of the total $23.4 billion replacement value of the Region’s assets.


REGION OF PEEL 23

Business Planning Process

The annual business planning process provides necessary resources to support advancing Council’s priorities and delivering on the strategic outcomes and operational priorities for the Region. The Region’s Strategic Plan and Term of Council Priorities are the foundation for the development of the budget.

The budget process begins each spring with members of senior management meeting to discuss overall pressures and priority outcomes of Council. Subsequent to this review a report recommending an approach for the upcoming year’s budget, including a net tax levy target is provided to Council. Council considers the report and provides staff with high-level direction on developing the budget.

The following nine key principles of the Finance Strategy were adhered to while developing the budget:

• Respect for the tax and utility ratepayers;

• Ensure the capital plan is sustainable;

• Maintain assets;

• Deliver value for money;

• Users pay where appropriate (including growth pays for growth);

• Work with local municipalities to support the economic viability of the community;

• Make prudent investments;

• Mitigate significant fluctuations in tax and utility rates; and

• Borrow only for substantial long-term assets at affordable levels.

In addition, the following principles were also followed while developing the budget:

• Identifying efficiencies to help offset inflationary pressures;

• Assessment growth to fund service demands;

• Addressing the most urgent needs in the community as identified through the strategic planning process;

• Aligning resources to increase the effectiveness of desired outcomes; and

• Commitment to measure the success of the plan.

In the fall, the Chief Administrative Officer and the Chief Financial Officer meet with senior management and key staff from every program area to align resources to areas of greatest risk and establish each program’s budget recommendation to Council. Senior management and staff will also review the previous year’s budget forecast for the current year, as well as the forecast for the next three years, to determine if any budget assumptions have changed or if there are any significant pressures on the horizon that should be addressed.

The Operating Budget includes the expenses and revenues approved by Regional Council for the period from January 1 to December 31 each year. A three-year operating forecast is also included in the business plan.

The annual Capital Budget includes the expenditures and financing sources to acquire, construct and maintain Regional assets approved for capital spending. The 10-Year Capital Plan provides the long-term view of the Regional infrastructure and non-growth related asset acquisition or construction requirements as well as the related financing sources.

Staff report back to Regional Council on a triannual basis with an update on the financial results of the Operating and Capital Budgets.

2015 Budget

The 2015 Budget provided a balance between meeting the service demands of a growing and changing population and maintaining long-term financial sustainability while minimizing the impact on Region of Peel tax and rate payers. It supported the Region’s commitment to deliver value for money and quality services to its residents that remain affordable to the taxpayer.

At the time of developing the 2015 Budget, the renewal of the Strategic Plan and Term of Council Priorities were underway, therefore the Region’s 2015 Budget reflects the Strategic Plan and Term of Council Priorities that Council approved in March 2011.

Peel is facing a changing and dynamic environment. Significant trends are resulting in increased program pressures and more complex community issues. Therefore the financial resource requirements to support 2015 program priorities were established by examining key budget drivers including changing population, aging infrastructure, environmental issues such as climate change, citizen safety, legislative compliance, provincial subsidies, inflationary and economic impacts, and considering the overall level of taxation on Peel’s rate payers.

Property Tax Supported Budget

The approved 2015 Current Budget included a 0.8 per cent tax increase for the Region’s portion of the municipal tax bill, or an average of $33 per household assessed at $452,500. Service-level enhancements incorporated into the budget include the following:

• 19,500 more Regionally controlled trips for accessible transportation services;

• Additional 2,555 paramedic service hours to address an increase in 9-1-1 calls;

• 300 additional child care subsidies;

• 100 additional housing rent subsidies; and

• Extended operational hours at two Community Recycling Centres.

Utility Rate Supported Budget

The Region operates and maintains two major water treatment facilities and two major wastewater treatment facilities on Lake Ontario, as well as pumping stations, reservoirs, wells and more than 8,053 kilometres of watermain and wastewater pipes. The Region also ensures the accuracy of more than 317,000 water meters and timely delivery of water bills based on actual readings. The Region’s operations include the supply of water to the Region of York under the terms and conditions of the York-Peel Water Supply Agreement, under which by 2031, 1.0 million York residents will receive Peel water in addition to the 1.77 million residents in Peel Region.

The Region continued to enjoy the lowest combined water and wastewater rates in the GTA despite an average budget increase of 7.0 per cent or $39 per year for an average household.


The following chart depicts how an annual homeowner’s utility bill of $579 supported water and wastewater services.

10-Year Capital Plan

The 10-Year Capital Plan (2015–2024) of $5.1 billion, funded through property tax, utility rates and development charges, represented the long-term commitment by the Region of Peel to serving Peel residents and ratepayers through prudent asset management and maintenance of Regional infrastructure.

Capital reserve contributions have been included in the 2015 Operating Budget to support the long-term financial investment in the state of good repair of both Regional tax supported assets and utility rate supported assets. A 1.0 per cent infrastructure levy was included in the property tax supported budget and 3.5 per cent infrastructure levy was included in the utility rate supported budget.

2015 Financial Results

The consolidated financial statements in the 2015 Annual Financial Report have been prepared in accordance with generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants of Canada. The statements and related information are the responsibility of management and include the financial activities of all entities deemed to be controlled by Peel including the Peel Regional Police Services Board and the Peel Housing Corporation.

The Ontario Municipal Act, 2001 requires the Region to appoint an independent auditor to express an opinion as to whether the financial statements present fairly the Region’s financial position and operating results. The consolidated financial statements have been examined by Peel Region’s auditors, Deloitte. Deloitte has issued their unmodified audit opinion on the financial statements. Their report can be found prior to the consolidated financial statements on page 34.

Consolidated Statement of Financial Position

PSAB standards for reporting require the Region to distinguish between financial and non-financial assets. Financial assets are those assets on hand, which could provide resources to discharge liabilities or finance future operations. The difference between financial assets and liabilities, or net financial assets (net debt), is an indicator of the Region’s ability to finance future activities and to meet its liabilities and commitments. Non-financial assets represent economic resources that will be employed by the Region of Peel to deliver programs and provide services in the future.

$579

Water and WastewaterOperations$246 (42%)

Reserves for state-of good-repair, $276 (48%)

Conservation Authorities$36 (6%)

Other$21 (4%)

2015 Average Annual Homeowner's Utility Bill

REGION OF PEEL 25


2015 Tangible Capital Assets Net Book Value$10,530 Million

Roads, Water andWastewater Pipes

51%

Structures 1%

Vehicles, Equipmentand Furnishings

12%

Construction Work in Progress

8%

Land and LandImprovements

11%

Building and BuildingImprovements

17%

2015 Annual Amortization Expense$251.3 Million

Transportation $50.2

Wastewater$63.9

Protection to Propertyand Persons $11.1

GeneralGovernment $15.3

Other $7.2

Housing $14.4

Waste Management $7.7

Water $81.5

2015 Tangible Capital Assets:Net Book Value & Amortization

Net Book Value

($ Thousands)

Amortization

1,136,196

14,031

588,540

10,381

2,016,936

90,297

43,730

646,486

24,972

1,701,204

13,203

5,407,048

136,892

36,467

1,243,054

831,055

0 10 20 30 40 50 60 70 80 90 100%

Roads, Water andWastewater Pipes

Land

Land Improvements

Building and BuildingImprovements

LeaseholdImprovements

Structures

Vehicles

Equipment andFurnishings

ConstructionWork in Progress

In 2015, net debt increased by $49.5 million to arrive at a net debt position of $147.0 million. This is a result of the decrease in financial liabilities being offset by a higher decrease in financial assets during the year.

Peel’s financial assets decreased due to lower balances for cash and short-term investments and long-term investments, which were slightly offset by increases in accounts receivable.

Financial liabilities decreased due to a decline in long-term debt and mortgages payable, which were slightly offset by an increase in overall accounts payable. In 2015, the Region’s net long-term debt position decreased by $63.0 million, as reflected in note 8 of the financial statements. The decline mainly resulted in a $3.7 million decrease in outstanding debt due to principal payments, a $36.7 million decrease due to sinking fund provision payments and $22.4 million mortgage principal reduction for Peel Housing Corporation. The Region did not issue external debt for its own purpose; however the Region issued $40 million in debt on behalf of the City of Mississauga.

Total non-financial assets include tangible capital assets, supplies of inventories and prepaid expenses. In 2015, the net book value of tangible capital assets is $10,530 million, which increased by $481.5 million. This is the result of the investment of $658.9 million in capital acquisitions and $85.6 million in contributed assets, less $251.3 million in current year amortization and $11.7 million in asset write-downs and disposals. Total historical cost is $13,940.4 million and the total accumulated amortization is $3,410.4 million, implying that 75.5 per cent of the service potential of the assets remains to deliver programs and provide services.

Consolidated Statement of Operations

Peel Region achieved a surplus of $434.6 million in 2015, which was an increase of 14.9 per cent from the prior year.

Revenues

Total revenues reported on the Consolidated Statement of Operations total $2,472.0 million in 2015. The chart to the right summarizes the sources of revenue used to fund Peel Region’s operations and capital investments from 2011 to 2015.

Revenues have been increasing over the past five years, with slight fluctuations due to contributed capital assets from developers, as reflected in the Others category, as well as increases in contributions from other governments. In 2015, Peel revenues increased by 4.9 per cent, which is a result of an increase in property tax and utility rates as approved in the 2015 Budget, as well as increases in contributions from other governments due to funding increases and higher capital recoveries from York Region.

REGION OF PEEL 27

500

1,000

1,500

2,000

2,500

Revenues by Category from 2011 to 2015($ Millions)

Levies on local municipalities Contributions – developers

Direct charges on ratepayers Others

Contributions – other governments Fees, service charges and other

2011 2012 2013 2014 20150

Total revenue collected from development charges in 2015 was $281.9 million, whereas growth related capital expenditures were $341.5 million. The $59.6 million shortfall did not result in the issue of debenture debt by the Region. The Region’s net long-term debt position improved as a result of not issuing debt. The Development Charges Reserve Fund was in a negative balance of $1.133 billion at the end of 2015, funded 100 per cent from the proceeds of debt issued in past years. Based on the chart above, the Region’s growth management capital program is expected to be fully funded, including related debt service costs, by development charges by the year 2031.

Expenses

Total expenses reported on the Consolidated Statement of Operations total $2,037.3 million in 2015. The chart to the right summarizes the expenses by function from 2011 to 2015.


-2.0

-1.5

-1.0

-0.5

0.0

0.5

Cumulative Deficit of the Growth Program($ Billions)

500

1,000

1,500

2,000

2,500

Expenses by Function from 2011 to 2015($ Millions)

General government, assessment and planning

Environmental services

Protection to property and personsHealth services

Transportation servicesSocial and family services

Social housing

2011 2012 2013 2014 20150

Expenses have followed an increasing trend over the last five years due to inflationary pressures, as well as costs related to service level enhancements and expenses relating to funding received from other governments. In 2015, total expenses increased by $59.7 million, or 3.0 per cent. The increase is a result of higher amortization costs and higher grants and transfer payments made by the Region. As evidenced in the Statement of Changes in Net Debt, the Region acquired $658.9 million of tangible capital assets in 2015, with the bulk of this relating to water and wastewater infrastructure. As the Region continues to acquire or construct new assets, the amortization expense continues to increase. The increase in grants and transfer payments are related to the increase in funding received from other governments to Peel that is distributed as flow through payments to social assistance program recipients and Children’s Services providers.

Financial Statement to Budget Comparison

Peel currently completes their budget using cash accounting and uses accrual accounting for the audited year-end financial statements, as required by PSAB. The budget is developed on a cash basis as two of its primary objectives are to determine the amount of financing and tax revenue required by the municipality to balance its budget. The Budget Document is prepared as a business case as its focus is to inform decision making. The year-end financial statements are prepared on an accrual basis that provides a historical review of past financial performance.

Due to the differences in methodology, adjustments are needed to convert the budget from a cash basis to a full accrual basis. The adjustments include the additions of revenues and expenses from the capital budget, the recognition of contributed assets as revenue, amortization expenses, as well as the removal of inter-fund reserve transfers.

Given that certain budget information is not available in full accrual format, the assumption of using budget adjustments that equal the actual full accrual adjustments are used. The full accrual budget estimates are unaudited and for financial statement presentation only. The detailed budget reconciliation from cash basis to full accrual basis is disclosed under note 11 of the financial statements.

When comparing the adjusted PSAB accrual based budget to the actual operating results in the Consolidated Statement of Operations, the actual annual surplus is higher than the budgeted amount by $216.4 million. The variance is mainly driven by higher than budgeted revenues which include $85.6 million in contributed capital assets received from developers that are not included in the budget, higher than anticipated contributions from other governments such as higher than estimated capital recoveries from York, and higher than budgeted developer contributions, which are being recognized as revenue, as a result of increased spending on development charge funded capital projects.

REGION OF PEEL 29

Outlook for 2016 and Beyond

The 2016 Budget is both responsible and efficient and supports the Region’s commitment to deliver value for money and innovative quality services to its residents that remain affordable to the tax and utility rate payers.

The 2016 tax supported budget includes an overall net tax levy increase of 1.9 per cent. Some of the service level enhancements approved were additional accessible transportation trips, additional paramedic service hours, additional front-line Police officers, additional housing rent subsidies, and the responsibility shift from local municipalities to the Region in the Transportation program. The budget also included an additional investment in Public Health programs due to a change in the funding formula provided by the Province. The tax rate increase includes a 1.0 per cent levy increase to support the long-term financial investment in the state of good repair of Regional tax supported assets.

The approach to setting the following year’s net tax levy target was changed during the 2016 Budget process. As previously described in the Business Planning Process section, Council would provide staff with direction on the net tax levy target for the upcoming year’s budget during the spring. However, this approach changed during the 2016 Budget process, as Council also approved a net tax levy target of 2.1 per cent for the 2017 Budget. This direction assists Regional staff and External Agencies in their business planning for 2017 Budget.

Changing legislation, provincial subsidies and the fluctuating economy will continue to influence budget increases over the next three years. Ontario Works benefit costs will be incrementally uploaded until 2018, at which time, the Province will fund 100 per cent of the mandatory benefit costs. Peel’s tax rate will also benefit from the upload of some of the cost of Prisoner Transport and Court Security in Police Services in 2016 continuing to 2018. The provincial needs-based funding model will continue to move towards 75/25 cost sharing for Public Health mandatory programs. Staff have projected that Peel’s taxpayers can expect to see an average net levy tax increase of 2.7 per cent over the next three years based on current Council directed service levels.

The 2016 Budget includes a utility rate increase of 9.0 per cent. Main base pressures include the increase in the Ontario Clean Water Agency service contract, contracted services costs for water repair activities and inflationary increases on materials, electricity, supplies, services and labour. The utility rate also increased to offset the estimated revenue loss due to lower average water consumption volume. These pressures are partially offset by lower chemical costs as a result of decreased wastewater flow and increased external recoveries due to changes in cost recovery models with external parties. The utility rate increase includes a 3.5 per cent increase to support the long-term financial investment in the state of good repair of utility rate supported assets.

For the period 2017 to 2019, utility rates are forecasted to increase on average by 4.6 per cent annually. Utility rates will continue to be influenced by commodity prices, consumption and operating costs. The 2017-2019 utility rate forecast also includes a 3.5 per cent annual rate increase to support the state of good repair of assets in the water and wastewater programs.


Conclusion

Balancing the needs of servicing a growing and changing community, while minimizing the impact to the tax and rate payer, is a high priority for the Region of Peel. The Long Term Financial Planning Strategy continues to provide a robust framework which supports the financial flexibility and financial sustainability of the Region in the long term.

As the Region’s new Strategic Plan continues to evolve, the Finance Department will play a key role in ensuring the Term of Council Priorities are achieved, while maintaining a strong financial position. The Region will adapt to meet the changing needs of our community, with each year bringing us closer to the future our community has imagined.

David Bingham, CPA, CMATreasurer and Director,Corporate FinanceJune 27, 2016

REGION OF PEEL 31

2015 FINANCIAL

STATEMENTSThe Regional Municipality of Peel, Ontario, Canada


Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca

Independent Auditor’s Report To the Members of Council, Inhabitants and Ratepayers of the Regional Municipality of Peel We have audited the accompanying consolidated financial statements of the Regional Municipality of Peel, which comprise the consolidated statement of financial position as at December 31, 2015, and the consolidated statements of operations, change in net debt and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


Auditor’s Report

Page 2

Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Regional Municipality of Peel as at December 31, 2015 and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Professional Accountants Licensed Public Accountants June 2, 2016

REGION OF PEEL 35

The Regional Municipality of Peel Consolidated Statement of Financial PositionAs at December 31, 2015 (All dollars in $000)

FINANCIAL ASSETS Cash and short-term investments (Note 3) $ 412,913 $ 424,718 Accounts receivable Federal and provincial governments 28,199 31,987 Other municipalities 41,126 43,190 Wastewater and water billings 57,573 48,641 Accrued interest 8,449 9,472 Sundry 20,989 16,010 Long-term loan receivable (Note 4) 15,862 8,508 Long-term investments (Note 3) 1,468,103 1,555,224 Recoverable gross long-term debt from area municipalities (Note 8) 120,877 92,387

2,174,091 2,230,137

LIABILITIES Accounts payable and accrued liabilities Trade accounts payable 320,125 299,207 Provincial government 188,256 168,809 Other municipalities 8,431 5,633 Deferred revenue (Note 5) 123,480 136,559 Landfill closure and post-closure liability (Note 6) 16,984 23,485 Employee future benefits and post-employment liabilities (Note 7) 97,813 92,874 Other liabilities 4,315 4,906 Long-term debt (Note 8) 1,341,784 1,353,836 Mortgages payable on income-producing properties (Note 8) 219,939 242,403

2,321,127 2,327,712

NET DEBT (147,036) (97,575)

NON-FINANCIAL ASSETS Tangible capital assets (Note 12) 10,530,091 10,048,495 Prepaid expenses 23,898 21,199 Inventory 5,077 5,261

$ 10,559,066 $ 10,074,955

ACCUMULATED SURPLUS (Note 9) $ 10,412,030 $ 9,977,380

The accompanying notes are an integral part of these consolidated financial statements.


20142015

The Regional Municipality of Peel Consolidated Statement of OperationsFor the year ended December 31, 2015 (All dollars in $000)

2015 2015 2014 Budget (Note 11)

REVENUES Levies on area municipalities $ 935,700 $ 937,857 $ 897,166 Direct charges on ratepayers 333,328 324,429 303,374 Contributions – other governments 545,654 619,687 525,107 Contributions – developers 247,947 281,936 265,487 Contributed capital assets - 85,656 134,335 Investment income 51,861 61,280 71,260 Fees, service charges and other 147,511 161,184 159,191

Total revenues 2,262,001 2,472,029 2,355,920

EXPENSES (Note 13) General government 55,772 51,401 64,359 Protection to property and persons 520,526 513,315 499,173 Transportation services 132,440 132,966 118,881 GO Transit - 17,303 36,389 Gas tax transferred to area municipalities 31,168 31,166 31,170 Environmental services 548,495 538,334 510,842 Health services 74,722 71,350 72,206 Social and family services 470,221 474,095 443,864 Social housing 186,799 183,913 177,473 Planning and development 5,845 5,694 5,719 Assessment/other 17,783 17,842 17,551

Total expenses 2,043,771 2,037,379 1,977,627

Annual surplus 218,230 434,650 378,293Accumulated surplus, beginning of year 9,977,380 9,977,380 9,599,087

ACCUMULATED SURPLUS, END OF YEAR (Note 9) $ 10,195,610 $ 10,412,030 $ 9,977,380


REGION OF PEEL 37

2015 2015 2014 Budget (Note 11)

ANNUAL SURPLUS $ 218,230 $ 434,650 $ 378,293

Acquisition of tangible capital assets (636,676) (658,936) (529,002)Amortization of tangible capital assets 254,377 251,273 237,573Contributed tangible capital assets - (85,656) (134,335)Write-down of tangible capital assets - 7,936 8,755Loss on sale of tangible capital assets - 2,000 1,683Proceeds on sale of tangible capital assets - 1,787 1,837

(164,069) (46,946) (35,196)

Acquisition of inventory - (10,150) (12,101)Acquisition of prepaid expenses - (59,406) (6,018)Consumption of inventory - 10,334 12,129Use of prepaid expenses - 56,707 4,399

Change in net debt (164,069) (49,461) (36,787) Net debt, beginning of year (97,575) (97,575) (60,788)

NET DEBT, END OF YEAR $ (261,644) $ (147,036) $ (97,575)


The Regional Municipality of Peel Consolidated Statement of Change in Net DebtFor the year ended December 31, 2015 (All dollars in $000)


OPERATING ACTIVITIES Annual surplus $ 434,650 $ 378,293 Items not involving cash Amortization of tangible capital assets 251,273 237,573 Loss on sale of tangible capital assets 2,000 1,683 Contributed tangible capital assets (85,656) (134,335) Write-down of tangible capital assets 7,936 8,755 Change in employee future benefits and post-employment liabilities 4,939 5,042 Change in landfill closure and post-closure liability (6,501) (1,941) Change in non-cash assets and liabilities Accounts receivable (7,036) 15,400 Recoverable gross long-term debt from area municipalities (433) 5,381 Accounts payable and accrued liabilities 43,163 31,581 Deferred revenue (13,079) 8,158 Other liabilities (591) 35 Prepaid expenses (2,699) (1,619) Inventory 184 28

Net change in cash and short-term investments from operating activities 628,150 554,034

CAPITAL ACTIVITIES Proceeds on sale of tangible capital assets 1,787 1,837 Cash used to acquire tangible capital assets (658,936) (529,002)

Net change in cash and short-term investments from capital activities (657,149) (527,165)

INVESTING ACTIVITIES Proceeds from disposals and redemptions of investments 223,580 392,993 Acquisition of investments (136,459) (127,427) Increase in long-term loans receivable (7,354) (1,394)

Net change in cash and short-term investments from investing activities 79,767 264,172

FINANCING ACTIVITIES Repayment of long-term debt (3,759) (3,658) Accrual for interest payments 382 446 Contributions to sinking fund (32,969) (32,969) Investment income earned on sinking fund (3,763) (2,813) Sinking fund assumed from area municipality - (309) Repayment of mortgages payable (22,464) (21,460)

Net change in cash and short-term investments from financing activities (62,573) (60,763)

Net change in cash and short-term investments (11,805) 230,278Cash and short-term investments, beginning of year 424,718 194,440

CASH AND SHORT-TERM INVESTMENTS, END OF YEAR $ 412,913 $ 424,718

Cash paid for interest $ 71,777 $ 64,656Cash received from interest 51,890 62,841


The Regional Municipality of Peel Consolidated Statement of Cash FlowsFor the year ended December 31, 2015 (All dollars in $000)

REGION OF PEEL 39

20142015

The Regional Municipality of Peel (“Region”) is an upper-tier municipality in the Province of Ontario (“Province”), Canada. The provisions of provincial statutes such as the Municipal Act, Municipal Affairs Act and related legislation guide its operations.

1. Significant Accounting Policies

The consolidated financial statements (“financial statements”) of the Region are the representation of management and are prepared in accordance with Canadian public sector accounting standards, as recommended by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants of Canada (“CPA Canada”).

The focus of these financial statements is on the financial position of the Region and the changes thereto. The consolidated statement of financial position includes all the financial assets and liabilities of the Region as well as non-financial assets. Financial assets are those assets that could provide resources to discharge existing liabilities or finance future operations. Net debt forms a part of the financial position and is the difference between financial assets and liabilities. This provides information about the Region’s overall future revenue requirements and its ability to finance activities and meet its obligations. Non-financial assets are normally used to deliver services. Their value lies with their service potential rather than their ability to generate future cash inflows. They form part of the financial position, as they provide resources that the Region can employ in the future to meet its objectives. The accumulated surplus is made up of the combination of net debt and non-financial assets.

Significant aspects of the accounting policies adopted by the Region are as follows:

a) Basis of PresentationThe financial statements reflect the financial activities of all entities that are accountable to and controlled by the Region, which include:

• Peel Police Services Board• Peel Housing Corporation (“PHC”)

All inter-departmental and inter-organizational transactions are eliminated on consolidation. Also included are the Regional contributions to the local conservation authorities, and the funding thereof. The Region is required, by legislation, to reimburse the Municipal Property Assessment Corporation for the cost of Assessment Services that are not administered or controlled by the Region.

Funds held in trust by the Region for residents of Peel Manor and Sheridan Villa Senior Citizens’ Residences, the Tall Pines and Malton Village Long Term Care Centres, and the Vera M. Davis Community Care Centre in the amount of $191 (2014 – $187), are not included in the financial statements. The financial activity and position of the trust funds are reported separately in the trust funds financial statements.

The Region maintains separate funds for the purpose of providing for periodic repayments on debt to be retired by means of debt retirement funds and sinking funds. The financial activity and position of this fund are disclosed separately in the debt retirement funds and the sinking funds financial statements.

The Regional Municipality of Peel Notes to the Consolidated Financial StatementsFor the year ended December 31, 2015 (All dollars in $000)


b) Basis of Accountingi) Accrual Method of Accounting

The Region follows the accrual method of accounting. The accrual basis of accounting recognizes revenue in the period in which the transactions or events occurred that gave rise to the revenues. Expenses are the cost of goods or services acquired in the period, whether or not payment has been made or invoices received.

ii) Cash and Short-term InvestmentsCash and short-term investments include short-term, highly liquid investments with a term to maturity of 90 days or less at acquisition.

iii) Investment IncomeInvestment income earned on surplus current fund, capital fund, reserves and reserve funds (other than obligatory reserve funds) are reported as revenue in the period earned. Investment income on unspent obligatory reserve funds is added to obligatory reserve fund balances.

Temporary investments are carried at the lower of cost and market value. Portfolio investments are carried at cost, unless there are impairments in value, at which time they are written down to recognize the loss in value. Discounts or premiums are amortized using the effective interest method.

iv) Loans ReceivableLoans receivable are valued at cost. Recoverability is reviewed annually and a valuation allowance is recorded when recoverability is impaired. The loans receivable is written off when it is no longer recoverable. Recoveries of loans receivable previously written off are recognized in the year received. Interest revenue is recognized as it is earned.

v) Non-Financial AssetsNon-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations.

a. Tangible Capital AssetsTangible capital assets are recorded at cost, which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of tangible capital assets, excluding land and landfill sites, are amortized on a straight-line basis over their estimated useful lives as follows:

Assets Useful life – years

Land improvements 5 – 99Buildings 20 – 100Building improvements 8 – 100Leasehold improvements 2 – 40 Equipment and furnishings 3 – 80Linear 15 – 90 Linear improvements 50 Structures 20 – 60 Vehicles 3

Annual amortization is charged in the year of acquisition and in the year of disposal. Assets under construction are not amortized until the asset is in service.

REGION OF PEEL 41

b. Contributions of Tangible Capital AssetsTangible capital assets received as contributions are recorded at their fair value at the date of receipt and are also recorded as revenue.

c. Interest CapitalizationThe Region capitalizes interest costs associated with the acquisition or construction of a tangible capital asset relating to certain projects. In 2015, the Region capitalized $78,600 (2014 – $78,600) of interest cost.

d. Natural ResourcesNatural resources that have not been purchased are not recognized as assets in the financial statements.

vi) Deferred Revenue – Development ChargesDevelopment charges, collected under the authority of Sections 33 to 35 of the Development Charges Act, 1997, are reported as deferred revenue in the consolidated statement of financial position in accordance with Canadian public sector accounting standards. Amounts applied to qualifying capital projects are recorded as revenue in the fiscal period in which the funds are expended on qualifying capital projects. Development charges will also be applied to cover costs for servicing debt including interest on borrowings and contributions to sinking funds to retire debt.

vii) Tax RevenueProperty tax revenue is recognized on an accrual basis when the tax is authorized by the passing of the tax levy by-law. Taxes are levied on properties listed on the assessment roll at the time the by-law is passed based on the approved budget and tax rates. Supplementary taxation is recognized as additional billings are issued for properties that are added to the assessment roll during the year.

At year end, the Region evaluates the likelihood of having to repay taxes as a result of tax appeals or other changes and recognizes a liability if the amount can be reasonably estimated.

viii) Government TransfersGovernment transfers are recognized in the financial statements in the period in which the events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made, and there are no stipulations that give rise to a liability.

ix) Employee Future Benefits and Post-Employment LiabilitiesThe Region accounts for its participation in the Ontario Municipal Employee Retirement System (“OMERS”), a multi-employer public sector pension fund, as a defined contribution plan.

Vacation entitlements are accrued for as entitlements are earned.

Sick leave benefits were discontinued in 1986. The remaining balance is adjusted for contract increases and subject to payout when an employee leaves the Region’s employment.

Other post-employment benefits and compensated absences are accrued in accordance with the projected benefit method, pro-rated on service and management’s best estimate of salary escalation and retirement ages of employees. Actuarial valuations, where necessary for accounting purposes, are generally performed triennially. The discount rate used to determine the accrued benefit obligation was determined by reference to the Region’s short and long term rate of borrowing. Unamortized actuarial gains/losses are amortized on a straight-line basis over the expected average remaining service life of the related employee groups. Unamortized actuarial gains/losses for event-triggered liabilities, such as those determined as claims related to Workplace Safety and Insurance Board (“WSIB”), are recorded when determined.


Costs related to prior-period employee services arising out of plan amendments are recognized in the period in which the plan is amended.

Where applicable, the Region has set aside Reserves intended to fund these obligations, either in full or in part. These Reserves were created under municipal by-law and do not meet the definition of a plan asset under Canadian public sector accounting standard PS 3250 Retirement Benefits. Therefore, for the purposes of these financial statements, the plans are considered unfunded.

x) Landfill LiabilityThe costs to close an existing landfill site and to maintain closed landfill sites are based on the future estimated expenditures required over a twenty-five year period, discounted using the Region’s long-term borrowing rate. These costs are reported as a liability on the consolidated statement of financial position. Landfill sites are amortized using the units of production method based upon capacity used during the year.

xi) Foreign Currency TranslationMonetary assets and liabilities denominated in foreign currencies are translated at the prevailing rates of exchange at the year-end date. Revenue and expenses are translated at the exchange rate prevailing on the transaction date. Realized and unrealized exchange gains and losses are included in the consolidated statement of operations.

xii) Use of EstimatesThe preparation of these financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the period. Significant estimates relate to accounts receivable, accrued liabilities, landfill closure and post-closure liability, liabilities for contaminated sites, employee future benefits and post-employment liabilities and expenses. Due to the inherent uncertainty in making estimates, actual results could differ from those estimates.

2. Change in Accounting Policy

As at January 1, 2015, the Region adopted the Canadian public sector accounting standard PS 3260 Liability for Contaminated Sites. The standard requires governments to record a liability in their financial statements if they have a contaminated site that meets the requirements as set out in the standard. The standard defines contamination as the introduction into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard. A liability for the remediation of a contaminated site is recognized as the best estimate of the amount required to remediate the contaminated site when contamination exceeding an environmental standard exists, the Region is either directly responsible or accepts responsibility, it is expected that the future economic benefit will be given up, and a reasonable estimate of the amount is determinable. If the likelihood of the Region’s obligation to incur these costs is either not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements. The adoption of this standard has been applied prospectively and the Region has recorded $63 of liabilities for contaminated sites as described in Note 15.

REGION OF PEEL 43

3. Investments

Cash and short-term investments have a market value of $416,643 (2014 – $426,707) at the end of the year. Long-term investments have a market value of $1,550,464 (2014 – $1,624,203), at the end of the year. Included in the Region’s investment portfolio are Region of Peel debentures at coupon rates that vary from 1.30 to 6.65 per cent (2014 – 3.45 to 6.65 per cent) with a carrying value $17,585 (2014 – $21,461).

4. Long-Term Loans Receivable

The balance for long-term loans receivable includes the following:

a) A 30-year memorandum of understanding at 5.196 per cent with Credit Valley Conservation (“CVC”) to be used to finance the renovation of their head office facility.

b) A 20-year loan agreement at 5.12 per cent with Abbeyfield Houses of Caledon (“Abbeyfield”) to be used to finance the construction of affordable housing for senior citizens.

c) An interest free subsidy agreement with Cervantes Lions Non-Profit Housing Corporation due on the day immediately following the fifteenth anniversary of the expiry of the housing provider’s operating agreement with the Region.

d) A loan to Shalimar International Housing Corporation; interest to be charged based on the prevailing capital market rate beginning September 1st, 2031; all principal and interest owing to be repaid by September 2nd, 2046.

e) A loan to Ahneen Co-operative Homes; interest to be charged based on the prevailing capital market rate beginning February 1st, 2027; all principal and interest owing to be repaid by February 2nd, 2042.

f) A bridge loan at 3.40 per cent to Supportive Housing in Peel to facilitate the development of a housing project pending receipt of provincial funding.

g) A loan to Forum Italia Non-Profit Housing Corporation; interest to be charged based on the prevailing capital market rate beginning July 2nd, 2025; all principal and interest owing to be repaid by July 2nd, 2040.

2015 2014

CVC – memorandum of understanding $ 6,193 $ 6,302Abbeyfield Houses of Caledon – loan agreement 243 255Cervantes Lions Housing – subsidy agreement 381 443Shalimar International Housing – loan agreement 673 432Ahneen Co-operative Homes – loan agreement 520 96Supportive Housing in Peel – bridge loan 7,146 980Forum Italia Non-Profit Housing – loan agreement 706 -

Total $ 15,862 $ 8,508


h) Future Repayments Estimated future receipts of long-term receivables are as follows:

Total

2016 $ 7,2732017 1332018 1402019 1482020 155Subsequent to 2020 8,013

Total $ 15,862

5. Deferred Revenue

Deferred revenues set-aside for specific purposes by legislation, regulation or agreement as at December 31, are composed of the following:

Balance at Inflows Revenue Balance at December Earned December 31, 2014 31, 2015Development Charges $ - $ 281,936 $ 281,936 $ -

Federal Gas Tax 29,677 38,652 33,257 35,072Provincial Gas Tax 73 662 660 75General – Region 35,665 47,864 46,215 37,314General – PHC 4,240 - 151 4,089 69,655 87,178 80,283 76,550York/Peel Water Supply Agreement 66,904 20 19,994 46,930

Total $ 136,559 $ 369,134 $ 382,213 $ 123,480

In 2001, the Region entered into a Long Term Water Supply Agreement (“Agreement”) with the Region of York (“York”) to supply potable water. The Agreement stipulates a maximum day water demand in each year to be supplied to York. New infrastructure constructed and used jointly by both Regions since the inception of the Agreement, has been funded through agreed cost-sharing based on allocating the flow capacity available to the Region and York on a project by project basis.

In 2013, negotiations with York on the cost-share split for the Hanlan Feedermain resulted in a reduction to the maximum day water demand supplied to York. The reduction in flow requirement impacts the majority of infrastructure which forms part of this agreement. As such, a credit for the investment made by York to-date for this jointly used infrastructure was warranted. The credit in the amount of $46.9 million (2014 – $66.9 million) will be used to fund York’s share of the construction costs of jointly used infrastructure in the future.

REGION OF PEEL 45

6. Landfill Closure and Post-Closure Liability

The Environmental Protection Act sets out regulatory requirements to properly close and maintain all active and inactive landfill sites. Under environmental law, there is a requirement for closure and post-closure care of solid waste landfill sites.

Landfill closure and post-closure care are activities for landfill sites that are expected to occur in perpetuity and requirements have been defined in accordance with industry standards and include final covering and landscaping of the landfill, pumping of groundwater and leachates from the site, and ongoing environmental monitoring, site inspection and maintenance.

The Region has one open and twenty closed landfill sites. The Caledon site is open but not currently being used and has an estimated remaining life of one year, which represents 5 per cent of its total capacity. For the site that is still open, the estimated liability is recognized as the landfill site capacity is used. For closed sites, the estimated liability for these expenditures is calculated for a twenty-five year period.

The estimated liability of $16,984 (2014 – $23,485) included in the financial statements represents the sum of the discounted future cash flows for closure and post-closure care activities discounted at the Region’s long-term borrowing rate of 4.75 per cent (2014 – 4.75 per cent).

As at December 31, the Region maintained a reserve of $18,677 (2014 – $21,186), which will be used to fund expected future costs.

7. Employee Future Benefits and Post-Employment Liabilities

Employee future benefits and post-employment liabilities reported on the consolidated statement of financial position consist of the following:

2015 2014

Retiree benefits Peel Police Services Board $ 59,313 $ 55,247Retiree benefits Peel Police Services Board (LTD recipients) 6,065 6,372Retiree benefits Peel Region 8,013 7,738Retiree benefits Peel Region (LTD recipients) 3,535 3,252 76,926 72,609Workplace Safety and Insurance Board 20,887 20,264

Total $ 97,813 $ 92,874

a) Retirement BenefitsThe liability for retirement benefits is for the Region’s and the Peel Police Services Board’s share of costs associated with extending the coverage for health, dental and life insurance benefits to qualifying employees. Benefit coverage, except for life insurance coverage, and health care spending account for Peel Police Services Board, ceases at the age of 65. The valuation treats enrolled members in receipt of long-term disability or WSIB benefits as continuing to receive active service benefits.

The liability is based on the actuarial valuations for the Region as at December 31 2014, and for the Police Services Board as at December 31, 2013, with estimates to December 31, 2015.


The following significant actuarial assumptions adopted in the valuation were based on management's best estimates.

• Future discount rates 4.85 per cent per year for Police 4.75 per cent per year for Region

• Future inflation rate 2.0 per cent per year

• Future salaries Escalate at 3.0 per cent per year

• Future dental premium rates: - Peel Regional Police Escalate at 3.5 per cent per annum - Region of Peel Escalate at 4.0 per cent per year from 2015 to 2016 and each subsequent year

• Future health care premium rates: - Peel Regional Police Initial rate of 6.5 per cent decreasing by 0.5 per cent per year to the ultimate rate of 4.0 per cent - Region of Peel Escalate at 4.0 per cent per year from 2015 to 2016 and each subsequent year

The following are the actuarial results for the accrued benefit liability reported on the consolidated statement of financial position:

Retirement Benefits Liability 2015 2014

Accrued benefit obligation at January 1 $ 77,534 $ 73,473 Add: benefit service cost 3,613 3,553 Add: interest accrued 3,745 3,603 Deduct: benefit payments (3,382) (3,095)

Accrued benefit obligation at December 31 81,510 77,534 Deduct: unamortized actuarial loss (4,584) (4,925)

Liability at December 31 $ 76,926 $ 72,609

Retirement Benefits Expense 2015 2014

Current period benefit cost $ 3,613 $ 3,553 Interest on accrued benefit obligation 3,745 3,603 Amortization of actuarial losses 341 411

Total $ 7,699 $ 7,567

The actuarial loss is the result of assumptions used in 2013 and 2014 year-end valuations that varied from assumptions used in prior valuations. These assumptions pertained to the distribution of covered employees, discount rate, escalation of health care rates, projected mortality rates and benefit coverage. The actuarial loss will be amortized over the expected average remaining service life of employees.

b) Workplace Safety and Insurance Board (WSIB)The Region is a Schedule II employer under the Workplace Safety and Insurance Act, and therefore, self-insures the entire risk of their own WSIB claims and is responsible for reimbursing the WSIB for all costs relating to its workers’ claims.

The liability reported in the consolidated statement of financial position is the result of a 2014 actuarial update that estimated potential liabilities of the Region under the provisions of the Workplace Safety and Insurance Act. The last full actuarial evaluation for the Region was completed as at December 31, 2014.

REGION OF PEEL 47

The results of the actuarial valuation are as follows:

WSIB Liability 2015 2014

Accrued benefit obligation at January 1 $ 20,156 $ 20,251 Add: estimated cost of claims (service cost) 2,666 1,936 Add: interest accrued 851 827 Deduct: expected benefits paid (2,916) (2,858)

Accrued benefit obligation at December 31 20,757 20,156 Add: unamortized actuarial loss 130 108

Liability at December 31 $ 20,887 $ 20,264

WSIB Benefits Expense 2015 2014

Current period benefit cost $ 2,666 $ 1,936 Interest on accrued benefit obligation 851 827 Amortization of actuarial losses 22 22

Total $ 3,539 $ 2,785

8. Long-Term DebtUnder the terms of the Municipal Act, 2001, Regional Council has approved the issuing of debentures to finance its own capital expenses and tangible capital assets, and those of the area municipalities within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. Debentures issued for such purposes are direct, joint and several obligations of the Region and area municipalities.

In 2015, the Region issued $40 million (2014 – $36.6 million) in debenture debt. The 2015 issue was on behalf of the City of Mississauga to meet funding requirements for its 2015 capital program.

a) Net Long-Term DebtThe total for long-term liabilities reported in the consolidated statement of financial position consists of the following:

2015 2014

Total long-term liabilities incurred by the Region includingamounts incurred on behalf of area municipalities $ 1,465,838 $ 1,441,158Less: Total value of Region’s sinking fund deposits 123,518 86,901Less: Value of Town of Caledon sinking fund assumed by the Region 536 421

Total long-term liabilities 1,341,784 1,353,836

Mortgages payable by Peel Housing Corporation 218,939 241,403Note payable by Peel Housing Corporation 1,000 1,000

Total mortgages payable on income-producing properties 219,939 242,403

Recoverable from lower-tiersCity of Mississauga 110,785 80,807Town of Caledon 15,040 16,961Less: Town of Caledon debt assumed by Region 4,948 5,381

Total recoverable gross long-term debt from area municipalities 120,877 92,387

Net Long-Term Debt at December 31 $ 1,440,846 $ 1,503,852


Serial debt and sinking fund debentures issued by the Region mature between June 2016 and June 2053 and have interest rates ranging between 0.95 per cent and 6.65 per cent.

Mortgages of $218,939 (2014 – $241,403) on PHC properties are secured by a first charge on specific assets of PHC with amortization periods ranging from 5 to 50 years and interest rates ranging from 1.04 per cent to 8.0 per cent.

A note payable in the amount of $1,000 (2014 – $1,000) is due to the tenants association of Twin Pines (PHC) and was contributed by its members. A contribution is repayable to a member of the tenants association on termination of membership with the association. Interest is payable at the lesser of $5 or 1.00 per cent of the principal balance outstanding per annum.

Sinking funds were established to provide for the orderly retirement of sinking fund debentures issued by the Region totaling $1,283,000 (2014 – $1,283,000). These debentures mature between December 2021 and June 2053.

b) Future Principal RepaymentsEstimated future principal repayments for the Region, including sinking fund contributions and PHC, are as follows:

Peel Housing Region Total Corporation of Peel

2016 $ 23,046 $ 36,825 $ 59,8712017 23,147 36,934 60,0812018 21,047 37,013 58,0602019 19,094 37,130 56,2242020 18,333 37,251 55,584Subsequent to 2020 115,272 511,342 626,614Net sinking fund debt repayable - 524,412 524,412

Total $ 219,939 $ 1,220,907 $ 1,440,846

Total interest charges in the amount of $68,329 (2014 – $69,709) are reported in the consolidated statement of operations. The charges consist of $9,246 (2014 – $10,490) for interest on PHC mortgages and $59,083 (2014 – $59,219) for debenture debt.

REGION OF PEEL 49

9. Accumulated Surplus

The Accumulated Surplus consists of the following balances: 2015 2014

Investment in tangible capital assets and social housing $ 10,305,275 $ 9,798,309Reserves and reserve funds 1,613,042 1,570,305Capital fund (1,446,480) (1,321,888)Current fund 7,183 3,310Less: unfunded liabilities Retiree benefits: Peel Police Services Board (31,336) (29,910) Region of Peel (5,843) (5,843) Workplace Safety and Insurance Board (8,512) (8,512) Landfill closure costs (16,984) (23,485) Other (4,315) (4,906)

Total Surplus $ 10,412,030 $ 9,977,380

a) Accumulated SurplusThe Region has a surplus management strategy that permits year-end transfers to and from reserves to manage the level of surplus carried forward into the next fiscal year. Such transfers are made to ensure that future commitments of the Region can be met and are based on management’s planning of infrastructure replacement, property tax rate and user rate stabilization, potential exposure to program funding shortfalls and contingent liabilities. The allocation of these transfers and their purpose is disclosed annually to Regional Council following completion of the year-end audit. The financial statements include the transfers made to reserves under the surplus management strategy.

b) Reserves and Reserve FundsReserves and reserve funds are established by Regional Council as appropriate, and are included in the accumulated surplus position of the Region.

10. Pension Agreements

The Region, on behalf of approximately 7,780 eligible employees, is a participant in OMERS. OMERS is a defined benefit pension plan, fully funded by equal contributions from participating employers and employees, and by the investment earnings of the OMERS Fund. OMERS pensions are calculated using a defined benefit formula, taking into account length of service and average annual wage (based upon the highest 60 consecutive months of earnings), that is designed to integrate with the pension payable from the Canada Pension Plan.

During the year, the Region’s contribution to OMERS for current service was $62,133 (2014 – $63,431). The Region’s contributions are reported in the consolidated statement of operations. Employee contributions also amount to $62,133 (2014 – $63,431).

For the December 31, 2015 year-end, the funded portion of the OMERS pension plan increased to 91.5 per cent (2014 – 90.8 per cent). Pension plan assets increased to $77,000 million (2014 – $72,000 million) primarily due to a lower risk investment strategy.


11. Budget Data

The budget amounts presented in the consolidated financial statements are based on the 2015 operating and capital budgets approved by Regional Council on February 19, 2015. The following reconciles the approved budget to the budget amounts presented in the consolidated financial statements using the accrual basis of accounting, in accordance with Canadian public sector accounting standards. Budgets established for tangible capital asset acquisitions are on a project-oriented basis, the costs of which may be carried over one or more fiscal years. Where amounts were budgeted for on a project-oriented basis, the budget amounts used are based on actual projects that took place during the year to reflect the same basis of accounting that was used to report the actual results.

Revenues Expenses

Operating Budget

Council Approved Budget $ 2,036,276 $ 2,036,276 In-year budget adjustments 14,755 14,755Board Approved Peel Housing Corporation 104,900 104,900 Adjustment for intercompany transactions (47,530) (47,530)PSAB Adjustments Contributions to reserves/reserve funds - (354,427) Contributions from reserves/reserve funds (46,888) - Payment to sinking fund for debt retirement - (36,650) Other liabilities - (5,666) Other adjustments (12,329) (12,329)

Adjusted Operating Budget 2,049,184 1,699,329

Capital Budget

Council Approved Budget 431,000 431,000 Timing difference between budget and spending 333,233 333,233Board Approved Peel Housing Corporation 6,846 6,846 Timing difference between budget and spending 2,918 2,918PSAB Adjustments Contributions from reserves/reserve funds (609,764) - Acquisition of tangible capital assets - (660,889) Amortization - 231,334

Adjusted Capital Budget 164,233 344,442

Other

Reserve fund interest and other revenue 48,584 -

Budget as presented in Financial Statements $ 2,262,001 $ 2,043,771

REGION OF PEEL 51

12. Tangible Capital Assets

2015

(All dollars in $000)

COST Balance at Additions Disposals & Balance at December 31, Write-downs December 31, 2014 2015Land $ 1,118,798 $ 19,578 $ (2,180) $ 1,136,196Land improvements 39,003 - - 39,003Buildings and building improvements 2,236,524 53,220 - 2,289,744Leasehold improvements 23,028 759 (203) 23,584Linear and linear improvements 6,914,542 509,632 (190) 7,423,984Structures 201,525 25,664 - 227,189Vehicles 77,813 10,852 (8,468) 80,197Equipment and furnishings 1,825,428 68,526 (4,414) 1,889,540Construction work in progress 782,133 56,361 (7,439) 831,055Total Cost $ 13,218,794 $ 744,592 $ (22,894) $ 13,940,492

ACCUMULATED AMORTIZATION Balance at Disposals Amortization Balance at December 31, December 31, 2014 2015Land improvements $ 12,791 $ - $ 1,240 $ 14,031Buildings and building improvements 545,548 - 42,992 588,540Leasehold improvements 9,601 (203) 983 10,381Linear and linear improvements 1,892,752 - 124,184 2,016,936Structures 85,018 - 5,279 90,297 Vehicles 42,206 (6,964) 8,488 43,730 Equipment and furnishings 582,383 (4,004) 68,107 646,486Total Accumulated Amortization $ 3,170,299 $ (11,171) $ 251,273 $ 3,410,401

NET BOOK VALUE Net Book Value December 31, 2015Land $ 1,136,196Land improvements 24,972 Buildings and building improvements 1,701,204 Leasehold improvements 13,203Linear and linear improvements 5,407,048 Structures 136,892Vehicles 36,467Equipment and furnishings 1,243,054Construction work in progress 831,055Total Net Book Value $ 10,530,091


12. Tangible Capital Assets (Continued)

2014

(All dollars in $000)

COST Balance at Additions Disposals & Balance at December 31, Write-downs December 31, 2013 2014Land $ 1,103,023 $ 15,775 $ - $ 1,118,798Land improvements 38,693 310 - 39,003Buildings and building improvements 2,061,751 174,773 - 2,236,524Leasehold improvements 21,258 3,186 (1,416) 23,028Linear and linear improvements 6,599,415 315,127 - 6,914,542Structures 195,233 6,292 - 201,525Vehicles 76,561 9,584 (8,332) 77,813Equipment and furnishings 1,684,004 159,725 (18,301) 1,825,428Construction work in progress 812,323 (21,435) (8,755) 782,133Total Cost $ 12,592,261 $ 663,337 $ (36,804) $ 13,218,794

ACCUMULATED AMORTIZATION Balance at Disposals Amortization Balance at December 31, December 31, 2013 2014Land improvements $ 11,540 $ - $ 1,251 $ 12,791Building and building improvements 504,319 - 41,229 545,548Leasehold improvements 10,177 (1,416) 840 9,601Linear and linear improvements 1,776,194 - 116,558 1,892,752Structures 80,051 - 4,967 85,018Vehicles 40,553 (6,650) 8,303 42,206Equipment and furnishings 534,421 (16,463) 64,425 582,383Total Accumulated Amortization $ 2,957,255 $ (24,529) $ 237,573 $ 3,170,299

NET BOOK VALUE Net Book Value December 31, 2014Land $ 1,118,798Land improvements 26,212Buildings and building improvements 1,690,976Leasehold improvements 13,427Linear and linear improvements 5,021,790Structures 116,507Vehicles 35,607Equipment and furnishings 1,243,045Construction work in progress 782,133Total Net Book Value $ 10,048,495

REGION OF PEEL 53

a) Construction in ProgressAssets under construction having a value of $831,055 (2014 – $782,133) have not been amortized. Amortization of these assets will commence when the asset is put into service.

b) Contributed Tangible Capital AssetsContributed tangible capital assets transferred to the Region in 2015 amounted to $85,656 (2014 – $134,335). The majority of tangible capital assets transferred were from developers and included water and wastewater local mains as well as land.

c) Works of Art and Cultural AssetsThe Region manages and controls various works of art and non-operational historical cultural assets including buildings, artifacts, paintings and sculptures located at Region sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized.

d) Write DownsThe write-down of tangible capital assets during the year was $7,936 (2014 – $8,755) in the consolidated statement of operations.

13. Expenses by ObjectThe consolidated statement of operations reports expenses for the Region by functions or by business programs. The following is a summary of expenses by object.

2015 2014

Salary and wages $ 716,302 $ 702,909 Services and rents 317,659 319,299Grants and transfer payments 469,404 428,426Materials and supplies 83,753 78,733Amortization 251,273 237,573Other operational expenses 130,660 140,978Debt interest charges 68,328 69,709

Total $ 2,037,379 $ 1,977,627

14. Contractual Obligations and Contingent Liabilities

a) As at December 31, 2015 outstanding contractual obligations for capital works amounted to approximately $516,002 (2014 – $652,810). Regional Council has authorized the financing of these obligations.

b) As at December 31, 2015 the Region has been named as defendant or co-defendant in a number of outstanding legal actions. No provision has been made for any claims that are expected to be covered by insurance or where the consequences are undeterminable. A provision of $9,430 (2014 – $9,527) has been made for those claims not expected to be covered by insurance.

c) Under the terms of various operating lease agreements, future minimum payments are as follows:

2016 $ 2,0582017 1,5552018 1,0842019 5292020 444Subsequent to 2020 1,989

Total $ 7,659


d) Under a 10-year service agreement, effective January 1, 2010, the Region has contracted the operations of the South Peel wastewater and water treatment systems to the Ontario Clean Water Agency (“OCWA”).

Included in the consolidated statement of operations are the 2015 charges from OCWA totaling $33,578 (2014 – $32,429). The consolidated statement of financial position reflects only the capital assets of the wastewater and water treatment facilities and the service charges due to or from OCWA.

e) The Peel Regional Police provide policing services to the Greater Toronto Airports Authority (“GTAA”). Under a service agreement, the GTAA provides funding to fully offset any costs incurred by the Peel Regional Police. In 2015, the Peel Regional Police received $17,577 (2014 – $16,733) from the GTAA.

f) Under contracts approved by the Region in 2005 and amended in 2012, a private waste management corporation will provide waste disposal capacity at current market rates (additional 16.5 years as at December 31, 2015) and waste transfer services to the Region. The annual estimated expenditure is $11,000. The private waste management corporation also provided waste collection services for Peel residents until the end of 2015, as Regional Council approved new contracts with two vendors in effect as of January 1, 2016, as described in the note below.

g) Under separate contracts approved by the Region in 2014, two private waste management companies will provide services including, but not limited to: bi-weekly, alternating garbage cart and recycling cart collection, bi-weekly bulky item collection, weekly organics cart collection, seasonal yard waste collection, garbage exemption collection periods, and manual (bag based) garbage, recycling and organics bin collection at specified locations. Each contract term is for an eight year plus nine month period commencing January 2016, with two additional, separate twelve month period extension options, based on satisfactory service, performance and pricing. The total of the two contracts is $40,500.

h) The Region has issued letters of credit for $4,759 (2014 – $3,999) in order to meet the credit requirements and conditions of certain agreements related to capital projects.

i) The Region has also identified a contaminated site on a piece of land downloaded from the federal government. The Region is currently working with the federal government to determine who accepts responsibility for the remediation of this site and has therefore not recognized a liability for this site in the consolidated statement of financial position.

15. Liability for Contaminated Sites

The Region has recorded a liability of $63 in accounts payable and accrued liabilities for a Regionally owned site which contained elevated levels of elements in the soil. The liability estimate of $63 for the site identified was based on the environmental assessment conducted by a third party engineering firm and cost of possible remediation alternatives. Estimated recoveries are expected to be $Nil.

REGION OF PEEL 55

16. Municipal Act, 2001

As part of its planned implementation of Current Value Assessment (“CVA”), the Province has mandated a transitional phase that requires municipalities to cap assessment-related tax increases on portions of properties in the commercial, industrial and multi-residential property classes. These assessment-related tax adjustments will be capped using a number of Council-adopted parameters designed to maximize the number of properties moving to full CVA-based taxation. The legislation provides that the costs of capping can be funded through the reduction of previously indicated assessment-related property tax decreases.

While the area municipalities have the jurisdiction responsibility for managing the tax collection system, the Region is responsible for acting as the “banker” in order to balance out the overall impact of the capping initiative on a broader Regional basis. Implementation may cause some year-to-year variances, although they are not expected to be material in nature. Regional Council has provided general direction that any such assessment variance may be funded through the use of general corporate reserves set aside for this purpose.

17. Segmented Information

The Region of Peel is a diversified municipal government institution providing a wide range of services to its residents that include General Government, Protection to Property and Persons, Transportation, Environmental, Health and Social and Family Services. The Region also controls and administers Peel Housing Corporation, a non-profit housing company.

For management reporting purposes the Region’s operations and activities are reported by Program Services. Program Services were created for the purpose of recording specific activities to attain certain objectives in accordance with regulations, restrictions or limitations. Regional services are provided by divisions and their activities are reported in the Program Services. Divisions disclosed in the Segmented Information, along with the services they provide are as follows:

General GovernmentGeneral government comprises divisions under Finance, Corporate Services and the Executive Office, Council and Service Innovation Information & Technology. The divisions provide direct support to the various citizen-facing Regional services, as well as Council and Committee. These divisions also supply financial and administrative leadership for the Regional Corporation.

Also included are corporate expenses and revenues that are not directly attributable to any individual service, but do impact the overall tax requirement.

Protection to Property and PersonsProtection to property and persons consists of Police Services, Paramedic Services and the conservation authorities. Police Services partners with the community to maintain social order and contribute to a safe environment in which to live, work and visit. The mandate of Paramedic Services is to decrease suffering and improve and promote community safety. Funding is provided to support the operating costs, special projects and land purchases for three conservation authorities in the Region.

Transportation ServicesTransportation services is responsible for Roads and TransHelp services. The mandate of the Roads division is to provide safe, reliable and secure roads while respecting the environment. TransHelp provides transit services to Peel residents unable to utilize conventional modes of public transportation.


GO TransitGO Transit includes the Region’s apportionment of capital costs billed by GO Transit.

Gas Tax Transferred to Area MunicipalitiesThis segment includes the Federal Gas Tax Revenue that is transferred to lower-tier municipalities.

Environmental ServicesEnvironmental services is responsible for Water, Wastewater and Waste Management Services. The Water Program sustainably delivers high quality drinking water, and the related support services, in an efficient and reliable manner. The mandate of Wastewater is to manage, collect and treat municipal wastewater. Waste Management provides environmentally sustainable waste management services to residents and small businesses while maximizing recovery of valuable resources.

Health ServicesHealth services is mandated by the Ontario Health Protection and Promotion Act and other legislation. Public Health provides programs and services in six key areas: communicable disease control and prevention, clinical services, enforcement, youth and adult illness prevention, early childhood development and health surveillance.

Social and Family ServicesChildren’s services plans, manages and coordinates a Region-wide early learning and child care system. Long Term Care operates five long-term care facilities for seniors. The Ontario Works deliver a range of programs providing employment and financial assistance to residents in need.

Social HousingSocial housing is responsible for administering social housing providers, the rent supplement programs and managing a social housing waiting list.

Peel Housing Corporation is a non-profit housing company providing over 16,000 residents with affordable rental units.

Planning and DevelopmentRegional planning provides planning policy & research and development planning services that respond to the growth and change experienced in Peel.

Assessment ServicesAssessment services is the funding to the Municipal Property Assessment Corporation, which administers province-wide property assessment services for municipalities.

REGION OF PEEL 57

General Protection to Transportation GO Transit Gas Tax Environmental Health Social & Family Social Planning & Assessment Total Government Property & Services Transferred To Area Services Services Services Housing Development Services Persons Municipalities

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

OPERATIONS REVENUELevies on area municipalities 937,857 897,166 - - - - - - - - - - - - - - - - - - - - 937,857 897,166Direct charges on ratepayers - - - - - - - - - - 324,429 303,375 - - - - - - - - - - 324,429 303,374Contributions - other governments 14,070 13,630 52,306 49,159 6,622 7,191 - - 31,167 31,170 65,300 32,321 48,187 44,711 345,760 313,066 56,275 33,858 - - - - 619,687 525,107Contributions - developers 285 1,049 4,809 1,214 57,501 54,425 - - - - 215,943 208,492 - 66 - - 3,398 241 - - - - 281,936 265,487Contributed capital assets - - - 1,353 2,616 6,495 - - - - 82,152 126,486 - - - - 888 - - - - - 85,656 134,335Investment income 13,462 6,964 6,449 8,295 5,847 7,144 - - - - 27,955 39,268 806 1,135 2,195 2,757 4,312 5,382 - - 254 316 61,280 71,260Fees and service charges 23,909 23,741 28,425 34,370 7,991 9,379 - - - - 20,211 15,597 987 818 17,006 17,095 62,197 57,511 458 680 - - 161,184 159,191

989,583 942,550 91,989 94,391 80,577 84,634 - - 31,167 31,170 735,990 725,539 49,980 46,730 364,961 332,918 127,070 96,992 458 680 254 316 2,472,029 2,355,920EXPENSES - - Salaries and wages 62,956 61,763 408,534 396,862 38,923 38,069 - - - - 51,613 50,143 56,413 56,041 123,149 126,492 8,322 8,564 6,995 6,969 - - 756,905 744,903Services and rents 23,070 25,001 32,480 36,015 22,434 21,405 - - - 4 143,129 139,562 9,791 10,236 11,728 11,843 56,671 57,338 514 344 17,842 17,551 317,659 319,299 Materials and supplies 3,463 2,823 14,457 14,731 8,207 7,684 - - - - 49,821 45,805 732 682 7,042 6,968 6 6 25 33 - - 83,753 78,733 Grants and transfer payments 21,761 21,859 39,313 36,296 607 602 - - 31,166 31,166 - - 387 631 310,575 277,333 65,565 60,510 30 30 - - 469,404 428,426 Debt charges 2,500 2,518 - - 664 679 - - - - 54,569 54,670 - - - - 10,595 11,841 - - - - 68,328 69,709 Intra government transfers (83,245) (82,556) (7,313) (8,154) (24,207) (23,127) - - - - 52,503 50,603 3,482 4,140 14,723 13,652 5,354 5,136 (1,900) (1,688) - - (40,603) (41,994) Amortization 15,262 13,719 14,453 13,251 50,238 46,596 - - - - 153,040 146,057 195 132 3,644 3,401 14,423 14,401 18 18 - - 251,273 237,573 Other operating expenses 5,634 19,232 11,391 10,172 36,100 26,973 17,303 36,389 - - 33,659 24,002 350 344 3,234 4,175 22,977 19,677 12 13 - - 130,660 140,978

51,401 64,359 513,315 499,173 132,966 118,881 17,303 36,389 31,166 31,170 538,334 510,842 71,350 72,206 474,095 443,864 183,913 177,473 5,694 5,719 17,842 17,551 2,037,379 1,977,627

ANNUAL SURPLUS (DEFICIT) 938,182 878,191 (421,326) (404,782) (52,389) (34,247) (17,303) (36,389) 1 - 197,656 214,697 (21,370) (25,476) (109,134) (110,946) (56,843) (80,481) (5,236) (5,039) (17,588) (17,235) 434,650 378,293

Segmented InformationFor the year ended December 31, 2015 (All dollars in $000)


General Protection to Transportation GO Transit Gas Tax Environmental Health Social & Family Social Planning & Assessment Total Government Property & Services Transferred To Area Services Services Services Housing Development Services Persons Municipalities

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

OPERATIONS REVENUELevies on area municipalities 937,857 897,166 - - - - - - - - - - - - - - - - - - - - 937,857 897,166Direct charges on ratepayers - - - - - - - - - - 324,429 303,375 - - - - - - - - - - 324,429 303,374Contributions - other governments 14,070 13,630 52,306 49,159 6,622 7,191 - - 31,167 31,170 65,300 32,321 48,187 44,711 345,760 313,066 56,275 33,858 - - - - 619,687 525,107Contributions - developers 285 1,049 4,809 1,214 57,501 54,425 - - - - 215,943 208,492 - 66 - - 3,398 241 - - - - 281,936 265,487Contributed capital assets - - - 1,353 2,616 6,495 - - - - 82,152 126,486 - - - - 888 - - - - - 85,656 134,335Investment income 13,462 6,964 6,449 8,295 5,847 7,144 - - - - 27,955 39,268 806 1,135 2,195 2,757 4,312 5,382 - - 254 316 61,280 71,260Fees and service charges 23,909 23,741 28,425 34,370 7,991 9,379 - - - - 20,211 15,597 987 818 17,006 17,095 62,197 57,511 458 680 - - 161,184 159,191

989,583 942,550 91,989 94,391 80,577 84,634 - - 31,167 31,170 735,990 725,539 49,980 46,730 364,961 332,918 127,070 96,992 458 680 254 316 2,472,029 2,355,920EXPENSES - - Salaries and wages 62,956 61,763 408,534 396,862 38,923 38,069 - - - - 51,613 50,143 56,413 56,041 123,149 126,492 8,322 8,564 6,995 6,969 - - 756,905 744,903Services and rents 23,070 25,001 32,480 36,015 22,434 21,405 - - - 4 143,129 139,562 9,791 10,236 11,728 11,843 56,671 57,338 514 344 17,842 17,551 317,659 319,299 Materials and supplies 3,463 2,823 14,457 14,731 8,207 7,684 - - - - 49,821 45,805 732 682 7,042 6,968 6 6 25 33 - - 83,753 78,733 Grants and transfer payments 21,761 21,859 39,313 36,296 607 602 - - 31,166 31,166 - - 387 631 310,575 277,333 65,565 60,510 30 30 - - 469,404 428,426 Debt charges 2,500 2,518 - - 664 679 - - - - 54,569 54,670 - - - - 10,595 11,841 - - - - 68,328 69,709 Intra government transfers (83,245) (82,556) (7,313) (8,154) (24,207) (23,127) - - - - 52,503 50,603 3,482 4,140 14,723 13,652 5,354 5,136 (1,900) (1,688) - - (40,603) (41,994) Amortization 15,262 13,719 14,453 13,251 50,238 46,596 - - - - 153,040 146,057 195 132 3,644 3,401 14,423 14,401 18 18 - - 251,273 237,573 Other operating expenses 5,634 19,232 11,391 10,172 36,100 26,973 17,303 36,389 - - 33,659 24,002 350 344 3,234 4,175 22,977 19,677 12 13 - - 130,660 140,978

51,401 64,359 513,315 499,173 132,966 118,881 17,303 36,389 31,166 31,170 538,334 510,842 71,350 72,206 474,095 443,864 183,913 177,473 5,694 5,719 17,842 17,551 2,037,379 1,977,627

ANNUAL SURPLUS (DEFICIT) 938,182 878,191 (421,326) (404,782) (52,389) (34,247) (17,303) (36,389) 1 - 197,656 214,697 (21,370) (25,476) (109,134) (110,946) (56,843) (80,481) (5,236) (5,039) (17,588) (17,235) 434,650 378,293

REGION OF PEEL 59

2015 DEBT RETIREMENT

AND SINKING FUNDSThe Regional Municipality of Peel, Ontario, Canada


Deloitte LLP5140 Yonge StreetSuite 1700Toronto ON M2N 6L7Canada

Tel: 416-601-6150Fax: 416-601-6151www.deloitte.ca

Independent Auditor’s Report

To the Members of Council, Inhabitants and Ratepayers of the Regional Municipality of Peel

We have audited the accompanying financial statements of the Debt Retirement and Sinking Funds of the Regional Municipality of Peel, which comprise the statement of financial position as at December 31, 2015, and the statements of operations, change in net financial assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’sinternal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Page 2

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Debt Retirement and Sinking Funds of the Regional Municipality of Peel as at December 31, 2015, and the results of its operations, changes in its net financial assets, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Professional AccountantsLicensed Public AccountantsJune 2, 2016


Auditor’s Report

Page 2

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Debt Retirement and Sinking Funds of the Regional Municipality of Peel as at December 31, 2015, and the results of its operations, changes in its net financial assets, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Professional AccountantsLicensed Public AccountantsJune 2, 2016

REGION OF PEEL 63

2015 2014

FINANCIAL ASSETS Cash $ 69,734 $ 40,147 Accrued interest 220 155 Long-term investments (Note 8) (Fair value 2015 – $61,804; 2014 – $56,658) 57,188 52,569

TOTAL FINANCIAL ASSETS 127,142 92,871

LIABILITY Actuarial requirements for retirement of sinking fund debt (Note 2d) 122,590 86,428

NET FINANCIAL ASSETS 4,552 6,443

ASSET ALLOCATION Region of Peel 124,011 87,322 Town of Caledon 3,131 5,549

$ 127,142 $ 92,871

ASSET ALLOCATION Debt retirement fund 2,981 5,470 Sinking fund 124,161 87,401

$ 127,142 $ 92,871

The accompanying notes are an integral part of these financial statements.

The Regional Municipality of Peel Debt Retirement and Sinking Funds Statement of Financial PositionAs at December 31, 2015 (All dollars in $000)


2015 2014

REVENUE Contributions (Note 5) $ 32,995 $ 32,995 Investment income 3,924 3,102

TOTAL REVENUE 36,919 36,097

EXPENSES Provision for actuarial requirements 36,162 35,053 Payment of principal from debt retirement fund 1,921 1,804 Payment of interest from debt retirement fund 727 847

TOTAL EXPENSES 38,810 37,704

Excess of expenses over revenue for the year (1,891) (1,607)Excess over actuarial requirements, beginning of year 6,443 8,050

EXCESS OVER ACTUARIAL REQUIREMENTS, END OF YEAR $ 4,552 $ 6,443


The Regional Municipality of Peel Debt Retirement and Sinking Funds Statement of OperationsFor the year ended December 31, 2015 (All dollars in $000)

REGION OF PEEL 65

2015 2014

OPERATING ACTIVITIES Excess of expenses over revenue $ (1,891) $ (1,607) Change in non-cash assets and liabilities Accrued interest (65) (80) Increase in actuarial requirements 36,162 35,053

NET CHANGE IN CASH FROM OPERATING ACTIVITIES 34,206 33,366

INVESTING ACTIVITIES Acquisition of investments (4,619) (2,806) Proceeds from disposal of investments - 2,467

NET CHANGE IN CASH FROM INVESTING ACTIVITIES (4,619) (339)

Net change in cash 29,587 33,027 Cash, beginning of year 40,147 7,120

CASH, END OF YEAR $ 69,734 $ 40,147


The Regional Municipality of Peel Debt Retirement and Sinking Funds Statement of Cash FlowsFor the year ended December 31, 2015 (All dollars in $000)

2015 2014

Excess of expenses over revenue for the year $ (1,891) $ (1,607)Net financial assets, beginning of year 6,443 8,050

NET FINANCIAL ASSETS, END OF YEAR $ 4,552 $ 6,443


The Regional Municipality of Peel Debt Retirement and Sinking Funds Statement of Change in Net Financial AssetsFor the year ended December 31, 2015 (All dollars in $000)


1. Purpose of Funds

The Region of Peel Debt Retirement Fund is a separate fund maintained for the purpose of providing periodic repayments of debt associated with Debenture Series “AD” assumed by the Town of Caledon to be retired by means of debt retirement funds on hand with the Region and further contributions from the Town of Caledon.

The Region of Peel Sinking Fund is a separate fund maintained for the purpose of providing periodic repayments for debt to be retired by means of sinking funds.

2. Summary of Significant Accounting Policies

These financial statements are the representation of management and are prepared by management in accordance Canadian public sector accounting standards, as recommended by Public Sector Accounting Board (“PSAB”) of Chartered Professional Accountants of Canada (“CPA Canada”). The significant accounting policies are summarized below:

(a) Basis of AccountingThe Region of Peel Debt Retirement and Sinking Funds follow the accrual method of accounting for revenues and expenditures.

(b) Revenue RecognitionContributions are recognized in the year receivable. Investment income is recognized as revenue when earned.

(c) InvestmentsThe short-term and long-term investments are recorded at amortized cost. Discounts on zero-coupon bonds are amortized on a compound interest basis over the term of the investment. The discounts or premiums on any coupon-bearing investment are amortized on a straight-line basis over the term of the investment.

Investment purchase is accounted for on the settlement date. There are no transaction costs incurred in the purchase of investments.

(d) Provision for Actuarial RequirementsThe provision for actuarial requirements for the Sinking Fund represents the amounts required which, together with interest compounded annually, will be sufficient to retire the related debt at maturity, based on contributions to the Sinking Fund to date. The actuarial requirements were calculated using a rate of 4 per cent per annum on debt issued in 2010 and 2.5 per cent, 3.25 per cent or 4 per cent per annum on debt issued in 2011 and thereafter. The excess or deficiency of financial assets over these requirements is included in the fund balance.

The Regional Municipality of Peel Debt Retirement & Sinking Funds Notes to the Financial StatementsFor the year ended December 31, 2015 (All dollars in $000)

REGION OF PEEL 67

3. Allocation of Series DQ Debenture Repayment

On October 5, 2015, a new Region of Peel Development Charges By-law came into effect, which included the growth portion of both the interest expense and sinking fund payment for Series DQ debt related to the arterial road transferred from the Town of Caledon in 2014. The Town of Caledon had previously agreed to pay a prorated portion of the growth related interest expense and sinking fund payment until the new Development Charges By-law became effective.

The Town of Caledon also continues to pay $433 in Series DQ debt that was spent on projects unrelated to the arterial road transferred to the Region of Peel. The interest expense and sinking fund payments related to that portion of debt will be paid annually by the Town of Caledon to the Region of Peel.

4. Allocation of Surplus

In 2015, there was no surplus declared payable to the Regional Municipality of Peel by the Debt Retirement and Sinking Fund Committee (2014 – $nil).

The following is the apportionment of the sinking fund balance reported in the statement of financial position.

Sinking Fund Surplus / (Deficit)(All dollars in $000)

Total Town of Region of Caledon Peel $ % %Series DQ 266 0.18 99.82Series EB 559 0.32 99.68Series EC 761 - 100Series EP (2) - 100Series EQ (13) - 100

1,571 0.15 99.85

5. Contributions

In 2015, there were no contributions made to the Debt Retirement Fund (2014 – $nil). Contributions to the Sinking Fund were $32,995 (2014 – $32,995).

6. Financial Instruments

The Debt Retirement Fund and Sinking Funds are subject to market risk and interest rate price risk with respect to the investment portfolio.


7. Principal Repayment

Annual principal repayments issued on behalf of the Town of Caledon over the next five years and thereafter are due as follows:

(All dollars in $000) $2016 2,0462017 2,1792018 2,3202019 2,4732020 and thereafter 1,074

Total 10,092

8. Investment Portfolio

Long-term investments consist of provincial, municipal and bank bonds bearing yield rates from 2.11 to 4.50 per cent and coupon rates from 3.50 to 5.10 per cent maturing from August 2021 to October 2042.

9. Excess Over Actuarial Requirements

(All dollars in $000) 2015 2014Consists of: $ $Debt retirement fund 2,981 5,470Sinking fund 1,571 973

Total 4,552 6,443

REGION OF PEEL 69

2015 TRUST FUNDS

The Regional Municipality of Peel, Ontario, Canada for the year ended December 31, 2015

Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca

Independent Auditor’s Report To the Members of Council, Inhabitants and Ratepayers of the Regional Municipality of Peel We have audited the accompanying financial statements of the trust funds of the Regional Municipality of Peel, which comprise the statement of financial position as at December 31, 2015, and the statements of financial activities and fund balance and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Page 2

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the trust funds of the Regional Municipality of Peel as at December 31, 2015, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.



Auditor’s Report

Page 2

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the trust funds of the Regional Municipality of Peel as at December 31, 2015, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.


REGION OF PEEL 73

The Regional Municipality of Peel Trust Funds Statement of Financial PositionAs at December 31, 2015 (All dollars in $000)

2015 2014

Excess of revenues over expenses $ 4 $ 5

Cash, beginning of year 187 182

CASH, END OF YEAR $ 191 $ 187


2015 2014

FINANCIAL ASSET Cash $ 191 $ 187

FUND BALANCE Residents’ equity $ 191 $ 187

2015 2014

REVENUES Deposits from residents $ 497 $ 483

EXPENSES Payment for maintenance, withdrawals by residents and estate payments 493 478

Excess of revenues over expenses 4 5 Fund balance, beginning of the year 187 182

FUND BALANCE, END OF THE YEAR $ 191 $ 187

The Regional Municipality of Peel Trust Funds Statement of Financial Activities and Fund BalanceAs at December 31, 2015 (All dollars in $000)

The Regional Municipality of Peel Trust Funds Statement of Cash FlowsFor the year ended December 31, 2015 (All dollars in $000)


Significant Accounting Policies

These financial statements reflect the financial position, financial operations, and cash flows of funds held in trust by The Regional Municipality of Peel (“the Region”) for residents of the Peel Manor and Sheridan Villa Senior Citizens’ Residences, the Tall Pines and Malton Village Long Term Care Centres, and the Vera M. Davis Community Care Centre.

These financial statements are the representation of management and are prepared by management in accordance with Canadian accounting standards for not-for-profit organizations, and reflect the following policies:

Basis of Accounting

Revenues are recorded in the period in which the transactions or events occurred that gave rise to the revenue.

Expenses are recorded in the period the goods and services are acquired and a liability is incurred, or transfers are due.

Use of Estimates

The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results could differ from these estimates.

The Regional Municipality of Peel Trust Funds Notes to the Financial StatementsFor the year ended December 31, 2015

REGION OF PEEL 75

2015 FIVE-YEAR FINANCIAL

AND STATISTICAL REVIEWThe Regional Municipality of Peel, Ontario, Canada


2015 2014 2013 2012 2011

STATEMENT OF OPERATIONS

SOURCES OF REVENUE Levies on area municipalities $ 937,857 $ 897,166 $ 871,471 $ 851,696 $ 839,615 Direct charges on ratepayers 324,429 303,374 284,392 278,366 252,324 Contributions – other governments 619,687 525,107 499,700 528,283 540,592 Contributions – developers 281,936 265,487 210,292 180,519 103,364 Contributed capital assets 85,656 134,335 58,911 67,280 74,927 Investment income 61,280 71,260 65,547 48,950 57,427 Fees, service charges and other 161,184 159,191 156,732 148,190 164,369

2,472,029 2,355,920 2,147,045 2,103,284 2,032,618

EXPENSES BY FUNCTION General government 51,401 64,359 51,645 48,803 45,587 Protection to property & persons 513,315 499,173 477,118 460,576 432,708 Transportation services 132,966 118,881 115,824 102,751 93,114 GO Transit 17,303 36,389 47,694 41,577 20,470 Gas tax transferred to area municipalities 31,166 31,170 29,523 29,522 29,522 Environmental services 538,334 510,842 483,669 497,206 482,760 Health services 71,350 72,206 70,802 66,927 67,063 Social housing 474,095 443,864 423,045 400,011 384,933 Social and family services 183,913 177,473 181,281 171,031 170,699 GTA Pooling - - - 10,123 20,248 Planning and development 5,694 5,719 4,866 4,247 4,249 Assessment/other 17,842 17,551 17,393 17,068 16,372

2,037,379 1,977,627 1,902,860 1,849,842 1,767,725

Annual surplus 434,650 378,293 244,185 253,442 264,893

Accumulated surplus, beginning of year 9,977,380 9,599,087 9,354,902 9,111,042 8,846,149

ACCUMULATED SURPLUS, END OF YEAR $ 10,412,030 $ 9,977,380 $ 9,599,087 $ 9,364,484 $ 9,111,042

EXPENSES BY OBJECT Salaries, wages and employee benefits $ 716,302 $ 702,909 $ 681,413 $ 663,042 $ 638,961 Debt servicing 68,328 69,709 63,222 50,447 42,941 Amortization 251,273 237,573 218,806 203,203 188,442 Operating and general expenditures 532,072 539,010 552,617 611,527 580,295 Transfers to others 469,404 428,426 386,802 321,623 317,086

$ 2,037,379 $ 1,977,627 $ 1,902,860 $ 1,849,842 $ 1,767,725

Five-Year Financial ReviewYears Ended 2011 to 2015Unaudited (All dollars in $000)


2015 2014 2013 2012 2011

STATEMENT OF FINANCIAL POSITION

Financial assets $ 2,174,091 $ 2,230,137 $ 2,255,809 $ 1,890,123 $ 1,691,708 Financial liabilities 2,321,127 2,327,712 2,316,597 1,906,526 1,610,972

Net financial assets (net debt) (147,036) (97,575) (60,788) (16,403) 80,736 Tangible capital assets 10,530,091 10,048,495 9,635,006 9,357,205 9,007,764 Prepaids & inventory 28,975 26,460 24,869 23,682 22,542

ACCUMULATED SURPLUS $ 10,412,030 $ 9,977,380 $ 9,599,087 $ 9,364,484 $ 9,111,042

RESERVE AND RESERVE FUNDS Reserves and reserve funds $ 1,613,042 $ 1,570,305 $ 1,503,620 $ 1,339,456 $ 1,279,337

TOTAL RESERVE AND RESERVE FUNDS $ 1,613,042 $ 1,570,305 $ 1,503,620 $ 1,339,456 $ 1,279,337

NET LONG-TERM LIABILITIES Long-term debt $ 1,341,784 $ 1,353,836 $ 1,364,136 $ 1,063,196 $ 787,138 Recoverable from lower tier municipalities (120,877) (92,387) (68,765) (20,459) (22,049) Mortgages on Peel Housing Corporation properties 219,939 242,403 263,863 284,323 303,747

Net Long-Term Liabilities (see Note A) $ 1,440,846 $ 1,503,852 $ 1,559,234 $ 1,327,060 $ 1,068,836

RECOVERED FROM: Property taxation $ 80,131 $ 82,868 $ 81,598 $ 49,845 $ 50,763 Revenue from development charges 1,140,776 1,178,591 1,213,773 992,892 714,326 Revenues from Peel Housing Corporation properties 219,939 242,403 263,863 284,323 303,747

$ 1,440,846 $ 1,503,862 $ 1,559,234 $ 1,327,060 $ 1,068,836

CHARGES FOR NET LONG-TERM LIABILITIESRECOVERED FROM: Property taxation $ 4,007 $ 4,016 $ 3,249 $ 2,556 $ 2,524 Revenue from development charges 55,075 55,203 48,274 34,883 25,214 Revenues from Peel Housing Corporation properties 9,246 10,490 11,699 13,008 15,203

Total Charges for Net Long-Term Liabilities $ 68,328 $ 69,709 $ 63,222 $ 50,447 $ 42,941

DEBT REPAYMENT LIMIT $ 245,774 $ 224,507 $ 237,960 $ 246,630 $ 258,954 (As prescribed by the Province)

Note A: The Region's share of its own sinking funds is deducted to arrive at net long-term liabilities as it represents funds accumulated to retire those liabilities.

Five-Year Financial Review (continued)Years Ended 2011 to 2015 Unaudited (All dollars in $000)

REGION OF PEEL 79

Five-Year Financial Review (continued)Years Ended 2011 to 2015Unaudited (All dollars in $000)


2015 2014 2013 2012 2011

RESERVE AND RESERVE FUNDS

TAX SUPPORTED CAPITAL RESERVES General Government $ 136,614 $ 108,740 $ 111,169 $ 129,123 $ 150,837 Health Services 8,945 25,795 24,806 23,711 22,736 Housing 44,938 22,227 11,539 (19,575) (14,176) Protection to Property & Persons 36,650 44,726 43,495 50,674 49,098 Social & Family Services 52,634 30,358 26,121 22,525 22,889 Transportation 160,586 152,102 138,670 121,723 106,997 Waste Management 134,464 167,157 183,862 191,505 190,549

574,831 551,105 539,662 519,686 528,930

UTILITY RATE SUPPORTED CAPITAL RESERVES Wastewater 305,230 293,476 258,734 218,689 192,366 Water 201,772 222,924 221,900 185,620 174,293

507,002 516,400 480,634 404,309 366,659

Total Capital Reserves 1,081,833 1,067,505 1,020,296 923,995 895,589

WORKING FUND RESERVES General Government 121,836 108,332 111,493 70,881 62,469 Health Services 4,979 2,207 2,117 2,046 1,983 Housing 37,834 8,848 8,460 8,150 7,874 Other 8,024 7,770 7,454 7,203 6,982 Protection to Property & Persons 850 823 790 763 745 Social & Family Services 9,703 35,408 33,970 31,693 31,154 Transportation 10,276 9,950 9,546 9,225 8,941 Waste Management 6,818 6,602 2,701 2,611 2,530 Wastewater 11,858 13,022 25,188 20,500 14,426 Water 1,929 1,926 1,848 9,699 5,255

214,107 194,889 203,568 162,771 142,359

2015 2014 2013 2012 2011

RESERVE FUND General Government 1,159 1,053 1,022 812 990 Protection to Property & Persons 1,472 1,421 1,348 1,317 1,427 Social & Family Services 1,522 1,958 1,879 2,057 1,597 Transportation 84 81 78 183 188 Waste Management 242 234 224 217 210

4,479 4,747 4,551 4,586 4,412

SPECIALTY RESERVES General Government 32,703 31,056 29,136 27,515 26,175 Housing 95,907 90,796 86,977 79,598 74,399 Social & Family Services 557 539 517 500 - Waste Management 29,297 21,964 12,492 1,636 -

158,464 144,355 129,122 109,249 100,574

POLICE Other 6,764 1,255 1,221 1,699 8,302 Tax Supported Capital Reserves 112,678 119,924 110,166 106,564 102,326 Working Fund Reserves 34,717 37,630 34,696 30,592 25,774

154,159 158,809 146,084 138,855 136,402

Total Reserves and Reserve Funds $ 1,613,042 $ 1,570,305 $ 1,503,620 $ 1,339,456 $ 1,279,337

Five-Year Financial Review (continued)Years Ended 2011 to 2015Unaudited (All dollars in $000)

REGION OF PEEL 81

Five-Year Statistical ReviewYears Ended 2011 to 2015


2015 2014 2013 2012 2011

TAXABLE ASSESSMENT (By year of assessment, in $ millions) Residential $ 165,481 $ 154,754 $ 144,594 $ 134,142 $ 126,568 Non-residential 45,882 43,909 41,956 41,269 38,316

Total Taxable Assessment (see Note B) $ 211,363 $ 198,663 $ 186,550 $ 175,411 $ 164,884

TAXABLE ASSESSMENT (Normalized for Current Value Assessment, in $ millions) Residential $ 173,264 $ 170,062 $ 167,249 $ 163,585 $ 160,639 Non-residential 47,373 46,883 46,385 46,842 46,190

Total Taxable Assessment (see Note B) $ 220,637 $ 216,945 $ 213,634 $ 210,427 $ 206,829

BUILDING PERMITS (in $ millions) Residential $ 3,086 $ 2,142 $ 1,446 $ 2,763 $ 1,862 Non-residential 1,326 1,483 1,157 887 781

Total Building Permits $ 4,412 $ 3,625 $ 2,603 $ 3,650 $ 2,643

HOUSING STARTS (units) 8,100 4,607 6,298 6,803 6,423

POPULATION AT YEAR END Mississauga 763,469 759,696 755,719 750,870 746,629 Brampton 610,891 601,975 585,734 567,042 554,036 Caledon 68,332 67,237 65,506 64,260 62,497

Total Peel Population (see Note D) 1,442,692 1,428,908 1,406,959 1,382,172 1,363,162

HOUSEHOLDS (see Note E) 452,500 425,558 419,347 412,137 406,728

EMPLOYEES (CONTINUOUS FULL-TIME) Peel Regional Police 2,905 2,870 2,783 2,788 2,754 Other Regional services 4,205 4,030 4,151 4,206 4,181

Total Employees 7,110 6,900 6,934 6,994 6,935

Five-Year Statistical Review (continued)Years Ended 2011 to 2015

REGION OF PEEL 83

2015 2014 2013 2012 2011

PER CAPITA INFORMATION Taxable assessment $ 114,703 $ 108,302 $ 102,771 $ 97,052 $ 92,849 Current expense 1,412 1,384 1,352 1,338 1,297 Reserves, reserve funds and development charges 1,118 1,099 1,069 969 939

Net Long-Term Liabilities Recovered from: Property taxation $ 56 $ 60 $ 58 $ 37 $ 38 Revenue from development charges 791 822 862 718 524 Revenues from income producing properties 152 170 188 206 223

Total Net Long-term Liabilities $ 999 $ 1052 $ 1108 $ 960 $ 784

EMPLOYEES PER HUNDRED THOUSAND RESIDENTS (Continuous full-time) Peel Regional Police 201 201 198 202 202 Other Regional services 291 282 295 304 307

Total Employees Per Hundred Thousand Residents 492 483 493 506 509

DOLLARS PER AVERAGE HOUSEHOLD Property taxes (see Notes C & D) $ 1,816 $ 1,783 $ 1,756 $ 1,734 $ 1,713 Utility charges (see Note C) 579 540 501 467 474

Average Homeowner Cost $ 2,395 $ 2,323 $ 2,257 $ 2,201 $ 2,187

Note B: In 2015, third year of four year phase-in of re-assessment using 2012 as the base year.

Note C: 2011 based on residential taxable assessment value of $373,000 and an average household water use of 34 tens of cubic metres per year.

2012 based on residential taxable assessment value of $388,500 and an average household water use of 31 tens of cubic metres per year.




Note D: Total population for periods 2011-2015 are estimated by Peel planning based on the 2011 Census data.

Note E: Total household for periods 2011-2015 are estimated by Peel planning based on the 2011 Census data.

Situated in the heart of southern Ontario’s major urban centres, the Region of Peel is the second-largest municipality in Ontario, with a population of 1.44 million and growing.

Peel has undergone a major transition during the past few decades. Rapid population growth and commercial development have transformed Peel into a dynamic urban community with a vibrant economic base.


Region of Peel: At a Glance

REGION OF PEEL 85

Accenture Inc.ADP CanadaAir CanadaAir TransatBank of MontrealBayshore Healthcare Ltd.Bell CanadaBooth Centennial Healthcare Linen ServicesCML Healthcare Inc.Canada Border Services AgencyCanada Post Corp.Canada Revenue AgencyCanadian Tire Corp.Canadian Tire Corp. Distribution CentreChrysler Canada Brampton Asssembly PlantCanadian Imperial Bank of CommerceCitiFinancial Canada Inc.City of BramptonCity of MississaugaCoca-Cola Bottling Company Ltd.CompuCom Canada Co.Costco WholesaleCyclone Manufacturing Inc.DH Corporation (Previously Davis & Henderson Ltd.)Decoma (Plastcoat Division of Magna)Dufferin-Peel Catholic District School BoardEnersource CorporationFederal Express Canada Ltd.Gamma-Dynacare Medical LaboratoriesGate Gourmet Group Inc.

General Electric CanadaGlaxoSmithKline Inc.Greater Toronto Airports AuthorityHB Group Insurance Management Ltd.Hatch Ltd.Hewlett-Packard (Canada) Co.HiltonHMS HostHoneywell Ltd.Hudson's Bay CompanyHusky Injection Molding SystemsInternational Truckload Services Inc.Intria Items Inc.Just Energy GroupKingsway Real Estate BrokerageLifeLabs Medical Laboratory ServicesLivingston International Inc.Loblaw Companies LimitedMaple Leaf Consumer FoodsMaple Lodge FarmsMaritime-OntarioMatrix Logistics Services Ltd.Maxxam Analytics Inc.McDonald'sMetro Inc.MHI Canada Aerospace Inc.Microsoft Canada Co.Monarch LogisticsNuance Group (Canada) Inc., TheOlymel L.P.Oracle Corp. CanadaPCL Constructors Canada Inc.Patheon Inc.Peel District School BoardPeel Regional PolicePepsico Foods CanadaPersonal Insurance Company of

CanadaPointClickCarePurolator Courier Ltd.Re/MaxRegion of PeelRight at Home Realty Inc.RocheRogers Communications Inc.Royal Bank of Canada Financial GroupRoyal LePageSchenker of Canada Ltd.Shoppers Drug MartSobey's Inc.Sonoco Canada Corp.Staples Advantage CanadaSuncor EnergySutton GroupSymcor Inc.Sysco Food ServicesTD Bank Financial GroupThe Rosedale GroupThe Shopping ChannelTim Horton's Inc.TJX CanadaTST Overland ExpressTrillium Health PartnersUPS Canada Ltd.University of Toronto MississaugaUTI Canada Contract Logistics Inc.Wal-Mart Canada Inc.Waste Management of Canada CorporationWorld Vision Canada

Peel's Largest Employers


Note: Including total employment for all Region of Peel locations

AuditorsDeloitte LLPChartered Professional Accountants

Lead BankerRoyal Bank of Canada

Credit Rating AgenciesMoody’s Investors ServiceStandard & Poor’s Global Ratings

Insurance Advisor/ConsultantAon Reed Stenhouse Inc.

Debt Issuance SyndicateBMO Nesbitt Burns Inc.CIBC World Markets Inc.National Bank Financial Inc.RBC Capital Markets Inc.Scotia Capital Inc.TD Bank Financial Group

Custodian AgentRBC Investor & Treasury Services

For more Investor Relations information, visit our website at: www.peelregion.ca/investors

10 Peel Centre Drive, Brampton, ON L6T 4B9

7120 Hurontario Street, Mississauga, ON L5W 1N4

Visit our website at peelregion.ca Email us at [email protected]

Region of Peel Partners

REGION OF PEEL 87

10 Peel Centre Drive, Brampton, ON L6T 4B9905.791.7800

peelregion.ca/finance

For a copy of this file, scan this code to get this report in pdf.

Documents

Region of Peel Annual Report 2015 · mixture of urban, suburban, rural, agricultural and natural landscapes. Peel is governed by the Regional Chair and a 24-member Council representing