2018 Budget Highlights

Transcription

1 Approved 2018 Budget Highlights (Budget Book 1 of 3) January 2018

2 Memorandum Corporate Services, Financial Services Division 500 George Street North Peterborough Ontario K9H 3R9 To: From: Dear Reader Sandra Clancy, Director of Corporate Services Date: February, 2018 Subject: 2018 Approved Budget On December 11, 2017, Council approved a $271.3 million Operating and an $85.6 million Capital Budget for Budget documents provide an overview of what the City plans to do with its financial resources over the coming year. The following budget books have been updated by City staff for changes recommended by the Budget Committee and approved by Council: Book Budget Highlights Book Operating Budget Book Capital Budget Details Overview of Changes Operating Budget - $271.3 million The draft 2018 tax levy requirements in the operating budget amounted to $127,413,039. The following chart summarizes the changes in the operating budget and the net tax levy requirements approved by Council on December 11, 2017 after completing detailed budget reviews:

3 Memorandum 2018 Approved Budget Page 2 All-inclusive Budget increase 2.09% %+0.50% = 2.85% All-inclusive increase for median residential property The budget guideline recommended by the Budget Committee through Report CPFS dated July 24, 2017 and approved by Council July 31, 2017 included the introduction of a storm water protection fee of $ Through the detailed budget deliberations Council ultimately chose to reject the introduction of a separate storm water user fee and opted instead to continue to fund the storm water program through the tax levy requirement. The 2.85% meets the guideline recommended by the Budget Committee. The 2.85% Allinclusive (Municipal, Education, Storm and Sewer Surcharge) tax increase is comprised of 2.09% for increased operating costs and traditional support for the capital program, 0.26% for increased support for storm and sanitary sewer works and 0.50% for increased tax-supported debt charges to implement the Capital Financing Policy approved by Council at its meeting held April 23, 2012.

4 Memorandum 2018 Approved Budget Page 3 Capital budget - $85.6 million There are 191 capital projects included in the 2018 Capital Budget for a total cost of $85.6 million. The following chart is a summary of the changes made from the Draft Capital Budget: Complete listing of Recommendations of Budget Committee Appendix A represents a complete listing of all the recommendations approved by Council on December 11, Attachment: Appendix A Excerpt from Council Minutes December 11, 2017

5 Appendix A Budget Committee Report No. 5 Meeting of November 27, 28 and 29, 2017 To the Council of The City of Peterborough for Consideration at its meeting held December 11, The Budget Committee as a result of its meeting held on November 27, 28, 29, 2017 recommends as follows: 1. Director of Corporate Services Report CPFS Draft Budget a) That the 2018 Draft Budget, and all estimated revenues and expenditures, fees, contributions to reserve and reserve funds, and proposed staffing levels referenced in the documents be adopted. b) That the user fees and charges as set out in Book 2 be adopted as part of 2018 Budget process. c) That any unused CAO Budget at the end of 2018 be transferred to the Organizational Development Reserve, subject to the overall year-end position. (Page 25) d) That any unused Peterborough Technology Services Budget, at the end of 2018, be transferred to the Electronic Data Processing (EDP) Reserve, subject to the overall year-end position and that, if actual 2018 costs exceed the 2018 Budget, funds may be drawn from the EDP Reserve. (Page 33) e) That any 2018 Engineering Overhead surplus be transferred to the Engineering Design and Inspection Reserve, subject to the overall yearend position and that if actual 2018 Engineering costs exceed the Budget, funds may be drawn from the Engineering Design and Inspection Reserve. (Page 60) f) That any unused portion of the 2018 Winter Control Budget that may exist at year-end be transferred to the Winter Control Reserve, subject to the overall year-end position, and that if actual 2018 Winter Control costs exceed the 2018 Budget, funds may be drawn from the Winter Control Reserve. (Page 76) g) That any unused Parking Budget, at the end of 2018, be transferred to the Parking Reserve, subject to the overall year-end position and that, if the actual 2018 Parking costs exceed the 2018 Budget, funds may be drawn from the Parking Reserve. (Page 84)

6 Appendix A h) That any unused Traffic Signal Maintenance Budget at the end of 2018, be transferred to the Traffic Signal Reserve, subject to the overall yearend position and that if the actual 2018 Traffic Signal Maintenance costs exceed the 2018 Budget, funds may be drawn from the Traffic Signal Reserve. (Page 85) i) That any surplus funds at the end of 2018 for Market Hall be transferred to the Market Hall Capital Reserve for unanticipated maintenance expenses or small capital improvements. (Page 109) j) That any unused Sustainability Budget, at the end of 2018, be transferred to the Sustainability Reserve, subject to the overall yearend position, and that if actual 2018 costs exceed the 2018 Budget, funds may be drawn from the Sustainability Reserve. (Page 109) k) That any surplus funds at the end of 2018 for the Peterborough Sport and Wellness Centre be transferred to the PSWC Capital Conservation Reserve for future capital improvements. (Page 113) l) That any surplus funds at the end of 2018 for Arenas be transferred to the Arena Equipment Reserve for future equipment purchases. (Page 126) m) That any unused Homelessness net budget at the end of 2018 be transferred to the General Assistance Reserve, to be used for future investment in homelessness prevention programs, subject to the overall year-end position and that, if actual 2018 Homelessness costs exceed the 2018 Budget, funds may be drawn from the Reserve. (Page 141) n) That any unused Community Development Program net budget at the end of 2018 be transferred to the Social Services Community Social Plan Joint Reserve for future program development, subject to the overall year-end position and that, if actual 2018 Community Development Program costs exceed the 2018 Budget, funds may be drawn from the Reserve. (Page 141) o) That any remaining unused Social Services net budget at the end of 2018 be transferred to the General Assistance Reserve, subject to the overall year-end position and that, if actual 2018 Social Services costs exceed the 2018 Budget, funds may be drawn from the Reserve. (Page 141) p) That any surplus in the 2018 Housing Operating Budget at the end of 2018 be transferred to the Housing Reserve, subject to the overall yearend position and that, if actual 2018 Housing costs exceed the 2018 Budget, funds may be drawn from the Housing Reserve. (Page 158)

7 Appendix A q) That any surplus in the 2018 Housing Choice Rent Supplement Program at the end of 2018 be transferred to the Housing Choice Rent Supplement Reserve, subject to the overall year-end position and that, if actual 2018 Rent Supplement costs exceed the 2018 Budget, funds may be drawn from the Rent Supplement Reserve. (Page 158) r) That any excess Airport development review fees at the end of 2018 be transferred to the Airport Development Review Reserve for future Airport Development related expenditures and that, if the 2018 Airport development review costs exceed the review fees, funds may be drawn from the Airport Development Review Reserve. (Page 162) s) That any unused Building Inspection Budget at the end of 2018 be transferred to the Building Division Reserve and that, if actual building inspection costs exceed the 2018 Budget, funds may be drawn from the Building Division Reserve. (Page 166) t) That a Casino Gaming Reserve be created and all Casino gaming revenues be transferred into the reserve, and that except for the provision in 2018 of $150,000 to fund expenditures of the DBIA, this reserve only be used for designated capital projects. (Page 170) u) That any adjustment to the City s 2018 requirement for the Municipal Property Assessment Corporation (MPAC), be netted against the City s 2018 General Contingency provision. (Page 173) v) That any unused portion of the 2018 tax write off account balance that may exist at year-end be transferred to the Allowance for Doubtful Accounts Reserve, subject to overall year-end position and that, if actual 2018 tax write-off costs exceed the 2018 Budget, funds may be drawn from the Allowance for Doubtful Accounts Reserve. (Page 176) w) That any unused Employee Benefits Budget at the end of 2018 be transferred to the Employee Benefits Reserve, subject to the overall year-end position, and that, if actual 2018 employee benefits exceed the 2018 Budget, funds may be drawn from the Employee Benefits Reserve. (Page 176) x) That any unused Insurance Budget at the end of 2018 be transferred to the Insurance Reserve, subject to the overall year-end position and that, if actual 2018 insurance costs exceed the 2018 Budget, funds may be drawn from the Insurance Reserve. (Page 176) y) That any unused 2018 Contingency Budget at the end of 2018 be transferred to the Capital Levy Reserve to be used for Capital works subject to the overall 2018 year-end position. (Page 176)

8 Appendix A z) That any unused Police Services Legal fees Budget at the end of 2018 be transferred to the Legal Fees Policing Reserve, subject to the overall year-end position and approval through the Treasurer, and that if the actual 2018 Police legal fees costs exceed the 2018 Budget, funds may be drawn from the Policing Legal Fees Reserve. (Page 180) aa) bb) cc) dd) ee) ff) gg) hh) ii) That any unused Police Services Budget at the end of 2018 be transferred to the Police Special Projects Reserve, subject to the overall year-end position and approval by City Council and that, if the actual 2018 Police Services costs exceed the 2018 Budget, funds may be drawn from the Police Special Projects Reserve. (Page 180) That any adjustments to the City s portion of the 2018 Peterborough County/City Paramedics Services Budget be netted against the 2018 General Contingency provision. (Page 187) That any unused Peterborough County/City Paramedics Services (PCCP) Budget at the end of 2018 be transferred to the PCCP Reserve, subject to the overall year-end position and that, if the actual 2018 PCCP costs exceed the 2018 Budget, funds may be drawn from the PCCP Reserve. (Page 187) That any adjustments to the City s portion of ORCA s 2018 Budget, based on the final approved ORCA Budget, be netted against the City s 2018 general contingency provision. (Page 189) That any adjustments to the City s portion of Peterborough Public Health s 2018 Budget, based on the final approved Peterborough Public Health Budget, be netted against the City s 2018 general contingency provision. (Page 190) That the 2018 budget request, representing the levy required by the Downtown Business Improvement Area of the Corporation of the City of Peterborough during the year 2018 totalling $310,800, be approved. (Page 198) That the 2018 budget request, representing all sums required by the Village Business Improvement Area of the Corporation of the City of Peterborough during the year 2018 totalling $17,380, be approved. (Page 199) That any net surplus funds, after the disposition of the recommendations in this report, from 2018 operations in excess of $100,000 be transferred to the Capital Levy Reserve to be used for Capital works. (Page 202) That a by-law be passed to establish the 2018 tax ratios for each property class as set out in the 2018 Operating Budget. (Page 215)

9 Appendix A jj) kk) ll) That the 2018 tax rate for farmland awaiting development subclasses be 75% of the residential rate. (Page 216) That a system of graduated tax rates within the Commercial and Industrial classes not be implemented for (Page 216) That the capping policy for 2018 for the Multi-residential, Commercial and Industrial classes be as follows: (Page 216) i. Capping be based on a maximum increase of 10% of the previous year s CVA (Current Value Assessment) tax for the eligible property. ii. iii. iv. No capping credit be applied for properties where the required billing adjustment is within $500 of the properties CVA tax; affected properties would be billed at their full CVA tax level. That properties that achieved CVA tax in 2017 remain at CVA tax from 2018 forward regardless of how reassessment affects the property. That properties that cross over from the clawback to the capping category or vice versa from 2017 to 2018 be taxed at CVA tax. v. That properties within the Industrial tax class are no longer eligible for the capping program. vi. vii That properties within the Commercial and Multi-residential tax classes move towards CVA Tax over a four year phase-out period which commenced in 2016 and will achieve full CVA by That the threshold on the tax level for eligible new construction be 100%. 2. Director of Corporate Services Report CPFS Creation of Communication Services Division and Approval of an Additional FTE That Council approve the recommendation outlined in Report CPFS dated November 27, 2017, of the Director of Corporate Services, as follows: That Report CPFS be received for information and included in the 2018 Budget discussions.

10 Appendix A 3. Director of Community Services Report CSD Canadian Canoe Museum Funding Request and Pre-commitment of Future Capital Budgets That the recommendations be amended by deleting the current wording and replacing as follows: a) That a total of $4 million in capital funding for the Canadian Canoe Museum for its proposed new facility, be approved; with the City contributions paid in increments over eight years, beginning in b) That the Mayor and Clerk be authorized to sign a funding agreement between the City and the Canadian Canoe Museum as may be required for the Museum to secure funding commitments from the province and/or federal government; c) That an annual Service Grant to be provided by the City to the Canadian Canoe Museum be set at the current 2018 amount of $108,362, without further increases for eight years; d) That staff advise Council when notification of a funding decision from the Government of Canada, for the Canadian Canoe Museum, has been received; e) That the Canadian Canoe Museum meet with City staff to explore opportunities at the current and proposed new site for increased community engagement and profile. f) That the Canadian Canoe Museum present its proposed business and operations plan for the new facility to Council, at a future time. 4. Director of Corporate Services Report CPFS Fairhaven 2018 Budget That Council approve the recommendation outlined in Report CPFS17-059, dated November 27, 2017, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 28, 2017 Budget Committee by Fairhaven for the 2018 Budget, be received. 5. Emerald Ash Borer Management Plan That staff provide an update report on the Emerald Ash Borer Management Plan by June of 2018.

11 Appendix A 6. Director of Utility Services Report USTR Statutory Holiday Transit Service That Council approve the recommendation outlined in Report USTR dated November 27, 2017, of the Director of Utility Services, as follows: That Report USTR be received for information. 7. Director of Utility Services Report USTR Role of New Traffic Operations Technician That Council approve the recommendation outlined in Report USTR dated November 27, 2017, of the Director of Utility Services, as follows: That Report USTR be received for information. 8. Downtown Parking Meters That staff provide a report in 2018 on the cost difference when replacing existing downtown parking meters with new technology to accept bills. 9. Director of Community Services Report CSSS Emergency Shelter Funding, Homelessness Support Services Update and a 2019 Budget Pre-commitment That Council approve the recommendations outlined in Report CSSS dated November 27, 2017 of the Director of Community Services, as follows: a) That Staff be directed to negotiate terms of renewed service agreements with Brock Mission, YES Shelter for Youth and Families, Four Counties Addictions Services for Emergency Shelter services, and the Homeless Coordinated Response Team (HCRT) for the period April 1, 2018 to March 31, 2020 at a maximum cost as outlined in Table 1 in the Budget and Financial section of this report; b) That Staff be directed to negotiate terms of a new service agreement with the Home for Good Supportive Housing Program; c) That the Warming Room service contract be expanded to provide for year round service delivery until April 30, 2020 and that Staff be directed to negotiate an agreement accordingly;

12 Appendix A d) That a draw from the Social Services Homelessness reserve in an amount up to $200,000 for 2018 and up to an additional $200,000 as a pre-commitment in 2019 to assist with additional costs for the homelessness programs in those years be approved; e) That a by-law be enacted authorizing the Mayor and Clerk to execute renewed service agreements for April 1, 2018 to March 31, 2020 with community partners related to emergency shelter services, Warming Room, Homelessness Coordinated Response Team and to execute new service agreements with service providers for the provincial Home for Good funding; and f) That Staff be requested to bring forward a follow-up report in late 2019 with an update on the emergency shelter situation, prevention initiatives and recommendations for funding of homelessness programs and services beginning April 1, Community Drug Strategy Program That staff provide a report in 2018 on the Community Drug Strategy Program. 11. Director of Community Services Report CSD Showplace Peterborough Funding Request and Pre-commitment of 2019 Capital Budget That Council approve the recommendations outlined in Report CSD dated November 27, 2017, of the Director of Community Services, as follows: a) That Report CSD17-029, which provides more details relating to the recommended increase to the City s 2018 Service Grant to Showplace Peterborough in the amount of $30,000 from the 2017 level of $107,181 to a total of $137,181; and an allocation of $75,000 in capital funding, through Capital Levy, to help leverage funding from senior levels of government for capital improvements in 2018, be received; and b) That an additional $75,000 in capital funding to Showplace, through Capital Levy, be pre-committed in the 2019 budget to help Showplace leverage funding from senior levels of government for capital improvements in 2019.

13 Appendix A 12. Director of Corporate Services Report CPFS Peterborough Police Services 2018 Budget That Council approve the recommendation outlined in Report CPFS17-061, dated November 27, 2017, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 28, 2017 Budget Committee by Peterborough Police Services Board for the 2018 Budget, be received. 13. Director of Corporate Services Report CPFS Budget for Peterborough Public Health That Council approve the recommendation outlined in Report CPFS17-058, dated November 27, 2017, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 28, 2017 Budget Committee by Peterborough Public Health for the 2018 Budget, be received. 14. Director of Corporate Services Report CPFS Budget for Downtown Business Improvement Area That Council approve the recommendation outlined in Report CPFS17-071, dated November 27, 2017, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 28, 2017 Budget Committee by the Downtown Business Improvement Area for the 2018 Budget, be received. 15. Director of Corporate Services Report CPFS Budget for the Peterborough Humane Society That Council approve the recommendation outlined in Report CPFS17-057, dated November 27, 2017, of the Director of Corporate Services as follows: That the budget details, presented to the November 28, 2017 Budget Committee by the Peterborough Humane Society for the 2018 Budget, be received.

14 Appendix A 16. Grey Water Collection and Dockage Costs That there be a comparison of operating costs and revenues for dockage with other local marinas, and That statistics on grey water collection and removal be provided in a report to Council. 17. User Fees and Charges for the Arenas a) That a new user fee be listed on Form 6 - User Fees and Charges for the Evinrude Centre, on page 169 of the 2018 Operating Budget Details Book for Non-Prime Time-Floor Rental at a rate of $54.85 effective April 1, 2018; and, b) A new user fee be listed on Form 6 - User Fees and Charges for the Peterborough Memorial Centre/Morrow Park, on page 172 of the 2018 Operating Budget Details Book for Non-Prime Time-Floor Rental at a rate of $66.14 effective April 1, Security Cameras at Arenas That a staff report on the provision of security cameras at all arenas be provided to Council in Director of Corporate Services Report CPFS Peterborough Health Team 2018 Budget for the Physician Recruitment Program That Council approve the recommendation outlined in Report CPFS17-058, dated November 27, 2017, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 28, 2017 Budget Committee by Peterborough Public Health for the 2018 Budget, be received. 20. Director of Corporate Services Report CPFS Budget for the Otonabee Region Conservation Authority That Council approve the recommendations outlined in Report CPFS17-055, dated November 27, 2017, of the Director of Corporate Services as follows: That the budget details presented to the November 28, 2017 Budget Committee by the Otonabee Region Conservation Authority, be received.

15 Appendix A 21. Director of Corporate Services Report CPFS Budget for the Peterborough and The Kawarthas Economic Development That Council approve the recommendation outlined in Report CPFS17-056, dated November 27, 2017, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 28, 2017 Budget Committee by Peterborough and The Kawarthas Economic Development, be received. 22. Director of Corporate Services Report CPFS Peterborough County/City Paramedics Service 2018 Budget That Council approve the recommendations outlined in Report CPFS17-060, dated November 27, 2017, of the Director of Corporate Services as follows: a) That the presentation and budget details presented to the November 28, 2017 Budget Committee by the Peterborough County/City Paramedics Service for the 2018 Budget, be received. b) That the $4,757,687 provision for Peterborough County/City Paramedics Service included in the 2018 Draft Operating Budget on pages of the 2018 Draft Highlights Book be increased by $19,674 to $4,777,361 and that the increase of $19,674 be transferred from the PCCP Reserve Budget for Downtown Business Improvement Area a) That the 2018 budget, representing the levy required by the Downtown Business Improvement Area of the Corporation of the City of Peterborough, be approved in the amount of $304,700 or a 0% increase over the 2017 amount; and, b) That the DBIA budget line in the amount of $50,000 for security, be used to provide security services in Age-Friendly Coordinator That the fulltime permanent position of an Age Friendly Coordinator be approved and for the year 2018, the City share of this be taken from reserve and in future years the expense be included in the Social Services Division budget, subject to the County of Peterborough commitment.

16 Appendix A 25. Housing First That the rent supplement for Housing First increase shown on line 201 of page 243 of the 2018 Budget Highlights book in the amount of $20,000 be approved and be taken from general contingency. 26. Director of Corporate Services Report CPFS Update on the City's Debt Capacity Limit That Council approve the recommendation outlined in Report CPFS dated November 27, 2017, of the Director of Corporate Services, as follows: That Report CPFS17-049, providing an update on the City s Debt Capacity limit, be received for information. 27. Director of Corporate Services Report CPFS Implications on the 2018 Draft Budget of the Elimination of the Stormwater Protection Fee That Council approve the recommendations outlined in Report CPFS dated November 27, 2017, of the Director of Corporate Services as follows: a) That the 2018 Draft Budget be amended by replacing Chart 2 on page 9 of the Highlights Book with the new Chart 2 in Report CPFS17-073; and b) That the 2018 Draft Budget be amended, as applicable, to indicate the Stormwater Protection Fee is not included as part of the 2018 Budget. Submitted by, Councillor Clarke Chair November 27, 28, 29, 2017

17 2018 Budget Table of Contents Part 1: 2018 Approved Budget Overview Operating Budget (Revenues and Gross Expenditures)... 2 Factors Impacting Operating Revenues... 3 Factors Impacting Gross Expenditures... 4 Gross Expenditures Versus Net Expenditures... 5 Factors Impacting Net Expenditures... 5 Net tax levy requirement equals $127.4 million up by 3.5%... 6 Tax Ratio Reduction Program continues for Effect of assessment growth on the All-inclusive Tax increase... 6 Median residential assessment: $243, Residential education rate assumed to decrease by 4.5%... 7 Sewer surcharge rate increases to 97.1%... 7 Approved Budget 2.09% +.26% % = 2.85% All-inclusive increase for median residential property... 8 How 2.85% All-inclusive rate increase relates to the $4.3 million increase in the Net Tax Levy Requirement... 8 What does 1% mean?... 8 Comparative All Inclusive Tax and Sewer Surcharge Rates and Levies for Median Single Family Dwelling... 9 Factors impacting 2.85% increase in the tax levy requirement Tax Levy Requirement Change Factors Capital Expenditures and Financing by Source Largest 2018 Capital Projects Part 2: 2018 Operating and Capital Budget Review Organization Chart City Council - Operating Budget Chief Administrative Officer Departmental Summary Operating Budget Fire Services Division - Operating Budget Fire Services Division Capital Budget Emergency and Risk Management Operating Budget Corporate Services Departmental Summary - Operating Budget Corporate Services Departmental Summary - Capital Budget Property ii

18 2018 Budget Table of Contents Facilities and Planning Initiatives Information Services Corporate Services Other Legal Services Departmental Summary Operating Budget Utility Services Departmental Summary Operating Budget Utility Services Departmental Summary Capital Budget Utility Services Administration - Operating Budget Utility Services Administration Capital Budget Flood Reduction Master Plan Projects Engineering, Construction and Infrastructure Planning - Operating Budget Engineering, Construction and Infrastructure Planning - Capital Budget Arterial Streets Collector and Local Streets Bridges Sidewalks Sanitary Sewers Storm Sewers Public Works Division - Operating Budget Public Works - Capital Budget Transportation Division Operating Budget Parking Traffic Transportation Demand Management (TDM) Transit - Capital Budget Parking - Capital Budget Traffic and Transportation Capital Budget Demand Management Capital Budget Environmental Services Division Environmental Protection Operating Budget Environmental Protection Capital Budget Environmental Services Division - Waste Management Operating Budget Environmental Services Division - Waste Management - Capital Budget Community Services Departmental Summary - Operating Budget Community Services Departmental Summary Capital Budget Community Services Administration Division - Operating Budget Community Services Administration Capital Budget Recreation - Operating Budget Recreation Capital Budget Arts, Culture and Heritage Division - Operating Budget Arts Culture and Heritage Capital Budget Museum Capital Budget Library Capital Budget Art Gallery Capital Budget Arenas Division - Operating Budget iii

19 2018 Budget Table of Contents Arenas Division Capital Budget Social Services Division Operating Budget Social Services Division Capital Budget Planning and Development Services Departmental Summary - Operating Budget Planning and Development Services Departmental Summary Capital Budget Planning, Geomatics/Mapping Administration Operating Budget Planning Capital Budget Growth Areas Capital Budget Industrial Parks Capital Budget Geomatics/Mapping Capital Budget Housing Division - Operating Budget Housing Division Capital Budget Airport Division - Operating Budget Airport Division Capital Budget Building Inspection and Protective Services Division Operating Budget Building Division Capital Budget Financial Services Other Financial Summary Operating Budget Capital Financing Costs Property Taxation Costs ($3.1 million) Other Expenditures Transfers To Organizations For Provision Of Services Summary Operating Budget Peterborough Police Services - Operating Budget Peterborough Police Services Capital Budget Fairhaven Peterborough County/City Paramedics Service (PCCP) Otonabee Region Conservation Authority (ORCA) Peterborough Public Health Operating Budget Peterborough & the Kawarthas Economic Development Peterborough Humane Society Peterborough Family Health Team Business Improvement Areas Corporate Revenues Summary Sewer Surcharge Sewer Surcharge Funded Operating Expenditures Other Fees and Service Charges Summary Part 3: 2018 Property Taxation Taxation Revenue Summary What a Residential Taxpayer Pays iv

20 2018 Budget Table of Contents Tax Policy Taxable Assessment Re-assessment Four Year Cycle Continues Taxable CVA by Class and Sub-class Tax Ratios and Tax Rates Tax Ratio Reduction Plan Tax Rate Impact of Tax Ratio Change Weighted Taxable Assessment Municipal Tax Rate Calculation Municipal Tax Rates Education Tax Rates Part 4: Other Sections Staffing New Proposed Positions in 2018 Budget Total Staff Complement Staffing Complement and Dollars Impact of Requested New Full-Time Permanent Positions New Full-time Permanent Positions Proposed in the Operating Budget Conversion of 2018 Approved Operating Budget to Full Accrual PSAB Compliant Budget Requests Not Included In the 2018 Approved Budget Capital Financing Supplementary Information Capital Levy Calculation and Tax Supported Debt Federal Gas Tax Program Development Charges Reserve Funds ($2.4 million) Development Charge Rates Long Term Debt Reserves and Reserve Funds Part 5: Glossary of Budget Terms and Acronyms Budget Terms Acronyms Used in Budget Documents v

21 Part Approved Budget - Overview Budget Highlights Part 1: 2018 Approved Budget Overview 1

22 Part Approved Budget - Overview 2018 Operating Budget (Revenues and Gross Expenditures) The 2018 Operating Budget provides a listing of the Operating Revenues and Gross Operating Expenditures. The following two charts illustrate the Revenues by Type and Gross Operating Expenditures by Department. 2

23 Part Approved Budget - Overview Factors Impacting Operating Revenues Conditional Grants are projected to decrease by a net amount of approximately $1.8 million, mostly as a result of a decrease of $4.5 million in subsidies for various programs in Housing, which is offset by an increase in subsidy for Social Assistance and Children s Services in the amount of $1.4 million. Sewer Surcharges is expected to increase 4.8% as the 2018 budget is based on 97.1% ( %) of water revenues. Both the sewer surcharge rate and the water rates have increased in Casino Gaming Revenues revenues as a result of the City hosting the Casino have been budgeted at $1.5 million in recognition of a partial year of operation in Tipping Fees have been reduced in the 2018 budget by 14.1% as revenue expectations from 2017 have not been met. The facility is jointly owned by the City and County with each municipality owning a 50% share. Other Fees and Service Charges overall are projected to increase, in line items such as the Storm Water Protection fee, increased recycling revenues, Transit fare revenues, Fire dispatch, parental fees in Children s Services and building permits; however, some revenues will decrease such as those associated with POA and composting. 3

24 Part Approved Budget - Overview Transfers from Other Reserves will increase mostly as a result of the 2018 election which is funded from the Election Reserve. Factors Impacting Gross Expenditures Gross Expenditures for 2018 have increased $7.1 million over the 2017 gross expenditures. The key factors are: Personnel - $3.0 million Increase in Debt Financing Charges - $0.8 million IT data processing costs - $0.5 million Minimum Wage impacts - $0.3 million 4

25 Part Approved Budget - Overview Gross Expenditures Versus Net Expenditures Gross expenditures, less direct revenues of $128.8 million, such as conditional grants and user fees, result in net expenditure requirements for 2018 of $142.4 million as shown in the following chart. Factors Impacting Net Expenditures The 2018 net expenditures have increased $6.0 million. Some of the key factors impacting gross expenditures have offsetting revenues which means they do not impact net expenditures. As an example, Children s Services gross expenditures have increased $1.9 million, but subsidies and other fees are also increasing by a similar amount, for a small overall decrease in net expenditures. The key factors impacting the 2018 Net Expenditures from the 2017 level are: Personnel (estimated to be $1.7 million) Social Services (-$0.5 million) Increase in Debt Financing Charges ($0.7 million) 5

26 Part Approved Budget - Overview Net tax levy requirement equals $127.4 million up by 3.5% Corporate revenues for 2018, such as Supplementary taxes, Investment interest, Payments in Lieu and City of Peterborough Holdings Inc. s return on investment, total $15.0 million and are deducted from the $142.4 million net departmental expenditures to derive the $127.4 million net tax levy requirements for The net tax levy requirements have increased by 3.5% or $4.3 million compared to Tax Ratio Reduction Program continues for 2018 As directed by Council through the 2018 Budget Guidelines report, the Tax Ratio Reduction Program continues for 2018 for Commercial and Industrial property owners. The multi-residential tax ratio remains at the 2011 rate. A one-time amount of $300,000 has been used to accelerate the reduction for the Commercial Tax Class and have been funded through the elimination of the Vacancy Rebate Program. That decision, in effect, has added a 0.4% component to the All-inclusive residential rate and without any other impacts; the residential tax rate would have in fact decreased by -.5%. Effect of assessment growth on the All-inclusive Tax increase The 2018 real current value assessment growth reduces the All-inclusive Tax increase by 0.54%. The net result is a 0.7% municipal residential tax rate decrease. The assessment used for the 2018 taxation year also reflects an estimated 0.97% real growth component for the Residential Class and 9.3% growth in the Multiresidential Property Class which is considerably more than the 0.75% Residential and 1.0% Multi-residential reported to Budget Committee through Report CPFS Budget Guidelines, dated July 24, These impacts are reflected in Chart 1. 6

27 Part Approved Budget - Overview Chart 1 Effect of Assessment Growth and Tax Ratio Changes on the All-inclusive Tax increase Median residential assessment: $243,800 The 2018 Budget is based on current assessment values as of January 1, Adjustments to market values from January 1, 2012 to January 1, 2016 values are being phased-in equally over the years with 2018 representing year two. It is expected that the median residential assessment for a single family dwelling (not waterfront property) for 2018 will be $243,800, an increase of 3.1% over the 2017 median assessed value of $236,500. Residential education rate assumed to decrease by 4.5% The education rate for all property classes continues to be regulated by the Province. For the 2018 Budget, it has been assumed that the rate will decrease by 4.5%, the same decrease experienced in the previous year. Sewer surcharge rate increases to 97.1% The 2018 Budget assumes a sewer surcharge rate of 97.1%, an increase of 2.1% over the 2017 rate of 95.0%. As of the budget print date for the Draft Budget, the Peterborough Utilities Commission had not approved the 2018 water rates. The 2018 Operating Budget assumes a 3.0% annualized water rate increase for Subsequent to preparation of the Draft Budget, the Commission approved a 2.5% increase in the water rate. The result is that the average house will experience a $20.68 or 4.7% (Draft Budget - $22.90 or 5.3%) increase in their sewer surcharge annual amount payable over the 2017 level. 7

28 Part Approved Budget - Overview Approved Budget 2.09% +.26% % = 2.85% All-inclusive increase for median residential property The budget guideline recommended by the Budget Committee through Report CPFS dated July 24, 2017 and approved by Council July 31, 2017 included the introduction of a storm water protection fee of $ Through the detailed budget deliberations Council ultimately chose to reject the introduction of a separate storm water user fee and opted instead to continue to fund the storm water program through the tax levy requirement. When the real assessment growth, the 0.0% proposed municipal residential tax rate decrease, the 4.5% reduction in the education rate, the 5.3% increase to the sewer surcharge are all considered, the median single family dwelling will see an Allinclusive 2.85% ($109.17) annual increase ($9.10 monthly) in municipal, education, storm and sewer surcharge payable. The 2.85% meets the guideline recommended by the Budget Committee through Report CPFS dated July 24, 2017 and approved by Council July 31, The 2.85% All-inclusive (Municipal, Education, Storm and Sewer Surcharge) tax increase is comprised of 2.09% for increased operating costs and traditional support for the capital program, 0.26% for increased support for storm and sanitary sewer works and 0.50% for increased tax-supported debt charges to implement the Capital Financing Policy approved by Council at its meeting held April 23, How 2.85% All-inclusive rate increase relates to the $4.3 million increase in the Net Tax Levy Requirement The 2.85% All-inclusive rate increase is a reference to the increase that a typical homeowner with a median assessed value of $243,800 would see on their 2018 tax and water bills for municipal services. Staff would suggest that it is the increase on their municipal tax and sewer surcharge component of the water bills that ratepayers want to hear about and understand, as that is what directly affects them. The $4.3 million Net Tax Levy Requirement increase is the additional amount that will be raised from taxation over the previous year; some of which is raised from current property owners and the balance is from the anticipated 'real' growth and the resulting tax bills those property owners will receive. What does 1% mean? Both the All-inclusive Tax increase and the Net Tax Levy Requirement are within the control of Council. For 2018, a 1.0% change in the All-inclusive Tax Rate (combined Municipal and Education Tax on Assessment plus Storm and Sewer Surcharge) equates to approximately $1.6 million in tax supported expenditures. That is, to lower the

29 Part Approved Budget - Overview proposed 2.85% increase to 1.85%, $1.6 million in net tax levy funded expenditures would have to be cut. Chart 2 summarizes the residential tax and sewer rates, and resulting levies. Chart 2 Comparative All Inclusive Tax and Sewer Surcharge Rates and Levies for Median Single Family Dwelling 9

30 Part Approved Budget - Overview Factors impacting 2.85% increase in the tax levy requirement For the most part, the 2018 Budget, as presented, maintains the existing levels of service while accommodating expenditure increases required to sustain levels of service and accommodating any new legislated requirements. However, there are some service level enhancements over and above the 2017 Budget Including: The Capital program has been enhanced through the additional 0.5% (2013 to %) provision for tax supported debt servicing costs in the amount of $790,900. Public Works winter services full annualized cost of 2 new FTEs for winter activities plus additional fleet and material costs Transit increased revenue service hours with new Community Bus route Transit additional Handi-van capacity will be implemented in early 2018 upon arrival of new vans. Table 1, lists the major areas reflected in the Budget that have impacted the 2018 tax levy requirement. The supplementary Notes on pages 12 and 13 provide additional commentary on key impacts. 10

31 Part Approved Budget - Overview Tax Levy Requirement Change Factors 11

32 Part Approved Budget - Overview Tax Levy Requirement Change Factors - Supplementary Notes Personnel costs Total personnel costs for 2018 will amount to $102.1 million for 1, employees (full-time equivalents) and represents 37.6% of the total $271.3 million gross expenditures. Personnel costs rose for a number of reasons including the estimated impact of contract settlements, grid step movements, the annualization of new 2017 hires and some proposed new hires. Social Services Upload Lines 3.01 Social Services caseloads have been budgeted with a net decrease of 1.0% and when combined with the continued provincial uploading of mandatory benefits will result in a savings of $0.9 million is the last year of the provincial upload. Capital Financing Policy - Increase in Tax Supported Debt Costs Line 4.01 A provision has been included in the amount of $0.8 million for tax supported debt servicing costs for a combined impact of 0.5% on the All-inclusive Tax Rate. Inflationary Factors/Other Increased Costs Line 5.02 As the City invests in new electronic tools operating costs increase, but is offset by the efficiencies created. Line 5.03 The increase in Contingency is in anticipation of contracted services such as cleaning and courier contracts that will be impacted as a result of the minimum wage increasing to $14.00 per hour. Any impact on City staffing costs has been reflected in the various Departmental budgets. Line 5.04 The City will be incurring debt principal and interest payments on the cost to convert City street lights to LED technology. The cost however, will be offset by savings in both electricity and maintenance as shown on line Increased Revenues or Decreased Expenditures offsetting budgetary pressures Line 7.02 Supplementary taxes have been increased as a result of the construction of the casino. Line 7.04 Various Reserve transfers have either increased or decreased based upon future needs. 12

33 Part Approved Budget - Overview Other factors affecting the 2018 tax levy requirement The other impacts shown will be discussed in the 2018 Operating and Capital Budget (by Department) section of the Highlights Book. Year-End Transfers Throughout the Operating Budget, there are many ongoing recommendations that Council traditionally approves, to transfer any unused portion of a certain budget to a specific reserve. The funds in the reserve might be for future capital works or to draw on and bring into operating in a year where operating costs exceed the budget. These transfers are dependent on the City s overall year-end financial position. These are listed in Part 2 of this Highlights Book, in their appropriate section. 13

34 Part Approved Budget - Overview 2018 Capital Budget: $85.6 million There are 191 capital projects included in the 2018 Capital Budget for a total cost of $85.6 million. Capital Projects are identified as either a Tangible Capital Asset (TCA) Project or as an Other Capital Project. The segregation gives direction to staff on how to appropriately account for the projects in the City s books and is an indicator of how they will be presented in the City s audited financial statement. TCA s are defined as: real or personal property that have a physical substance that: Are used in the production or supply of goods and services, rental to others, administrative purposes or for the development and construction of other tangible capital assets; Have an estimated life of greater than one year; and Are used on a continuing basis. The Capital Budget includes the following information for each project: project details, justification, effects on future Operating Budgets, and accessibility considerations, if applicable. Capital Needs Outweigh Funds Available When preparing the 2018 Capital Budget, the requested capital program from Departments far exceeded the available funds. As in prior years, the program was reduced to come in within the guideline provided by Council. This exercise was more rigorous than in prior years, given the need to move projects forward and the reduction of the capital enhancement from 1.0% (2013 to 2017) to 0.5% in 2018 for tax supported debt servicing costs. Examples of reductions made include: Examples include: o Improvements to Playgrounds o Improvements to Sports Fields o Roads with PCI < 25 o Trails o Property Acquisitions o Hospice Peterborough $200,000 of the final contribution of $0.5 million deferred to 2019 o Peterborough Humane Society New Animal Care Centre - $100,000 deferred to 2019 o Del Crary Park upgrades deferred for 1 year 14

35 Part Approved Budget - Overview In looking forward to future years, capital pressures continue to outweigh available funds. In the 2018 Capital Budget, even if staff assume that the current capital financing policy continues for future years, there is not sufficient financing to fund the requests for For this reason, Council is cautioned not to assume a project will be completed in the future year as shown in this budget document. Council and staff will continue to work on what their priorities are for the capital program, financing available, and look for creative ways to address capital needs. Asset Management will play an increasing role in prioritizing capital projects. 15

36 Part Approved Budget - Overview 2018 Capital Budget Summary: $85.6 million The 2018 Capital Financing Supplementary Information section of this Highlights Book provides more information about Capital Levy, Tax Supported Debt, Reserve and Reserve Funds, and Development Charge revenues. 16

37 Part Approved Budget - Overview 2018 Capital Expenditures and Financing by Source 17

38 Part Approved Budget - Overview 20 Largest 2018 Capital Projects The $61.1 million in these top 20 projects represents 71.4% of the total $85.6 million Capital Budget. 18

39 Part Approved Budget - Overview In the list above, three projects assume external funding which has not yet been approved and will only move forward in 2018 if/when it is. The projects are: Project #1 New Arena Facility, Project #2 Curtis Creek Tivey Street Outlet Improvements, Project # 17 Curtis Creek Euclid Avenue Culvert Replacement. 19

40 Budget Highlights Part 2: 2018 Operating and Capital Budget Review (by Department) 20

41 Organization Chart While preparing for the Budget Committee Reviews, Council is encouraged to review the 2018 Work Programs found in Book 2. At a very high level, the work programs show Council the outcomes they can expect at the requested levels of funding for each Department. The following organization chart shows each department and the division within each department that operate to achieve the work program items. 21

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43 City Council - Operating Budget The City of Peterborough operates on the Council-Chief Administrative Officer system of municipal government. The Council is comprised of a Mayor and ten Councillors who hold regular Council, Committee of the Whole, and Planning meetings on a three-week cycle. The budget includes remuneration for the Mayor and Members of Council, plus a position for an Assistant to the Mayor. Council Remuneration is based on the policy adopted by Council on March 6, 2017, based on a Council motion made when discussing Report CPCLK dated February 27, 2017 of the Director of Corporate Services. The motions read as follows: b) That the current level of Council compensation be maintained with annual increases the lesser of either the CPI or staff increases; and, c) That Council compensation automatically be reviewed the second year of each term with any recommendations approved by Council to take effect the following term. For purposes of the 2018 Budget, remuneration for the Mayor is estimated to be $70,036 and for each Councillor, $28,

44 Chief Administrative Officer Departmental Summary Operating Budget The Chief Administrative Office is comprised of the Chief Administrative Officer, an Administrative Assistant and a Corporate Policy Coordinator. The office is responsible for the co-ordination, administration and direction of all affairs of the corporation, including direct responsibility for Fire Services and Emergency Management. 24

45 Recommendation That any unused CAO Budget at the end of 2018 be transferred to the Organizational Development Reserve, subject to the overall year-end position. Fire Services Division - Operating Budget There are three stations throughout the city as well as a non-staffed station at the airport. Personnel are involved in suppression and rescue, prevention, public education, administration, communications, training and emergency management. The Service will continue to provide fire and emergency dispatch/communication services to all eight neighbouring municipalities within Peterborough County as well as the seven Fire Departments within the County of Northumberland. Personnel costs for the 99.6 staff in the Division represent 86% of gross expenditures. Revenues have increased primarily as a result of the contract for fire dispatch services for Northumberland County. Fire hydrant charges to the City of Peterborough by the PUC remain at $650,000 for 2018; however, the actual costs incurred by the PUC to provide this service continue to exceed this amount. 25

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47 Fire Services Division Capital Budget Fire Fighting Equipment and Personal Protective Equipment (PPE) Program This program allows for the replacement of decommissioned PPE to ensure firefighters are suitably equipped to remain in-service when their primary set of PPE has been taken out of service for cleaning and/or repairs. Supplying the additional set of required PPE to each firefighter was mandated by the Ministry of Labour in This is a priority health and safety part of the TCA program. Fire Apparatus Replacement/Additions The expenditure in 2018 is for the replacement of a Support Unit. 27

48 Fire Station Relocations and Construction At its meeting held March 1, 2010, Council adopted a number of recommendations as set out in Report CSF (b) dated February 16, 2010 concerning the Station Relocation Review and Implementation. The report indicated that Station #2 on Carnegie Avenue would be replaced with annual capital budget priorities and scheduled development. The $4.0 million provision shown in 2020 represents the estimated construction cost to replace the 45-year old Station. The report also indicated that in 2020, Station #4 would be constructed in East City in conjunction with annual capital budget priorities and scheduled development; however, the project has been deferred until 2024 pending the Cold Springs Subdivision Development. 28

49 Emergency and Risk Management Operating Budget The Emergency and Risk Management Division is responsible for plans, procedures, training and education to ensure the coordination of response and recovery efforts among government, the private sector and nongovernment organizations during complex emergencies. This is a legislated requirement under the Emergency Management and Civil Protection Act. The Division is also responsible for the corporate insurance and risk management program, including property, equipment and vehicle insurance, risk management training and programs, and the management of incident reports and handling of claims brought against the City. Corporate and Divisional Business Continuity Plans will be reviewed and updated to ensure continuity of critical services and business operations. The Provincial Nuclear Emergency Response Plan designates the City as a host community for Durham Region residents in the event of significant nuclear incident at the Darlington or Pickering Nuclear Generating Stations. The Emergency Management and Civil Protection Act states that municipalities must establish emergency management programs that include mitigation, prevention, preparedness, and response and recovery activities to promote disaster resilient communities. The Emergency Response Plan and training will continue to integrate the Provincial Incident Management System (IMS) principles and framework. Training and plans will be IMS focused. 29

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51 Corporate Services Departmental Summary - Operating Budget This Department facilitates coordinated and effective delivery of services provided by the Clerk's Office, Financial Services, Property Services, Human Resources, Corporate Information Services and Facilities and Planning Initiatives. Preparations for the 2018 municipal election commenced mid-2017 with the hiring of an Election Co-ordinator and Election Assistant. The positions are funded from the Election Reserve. The cost of the Election in 2018 is expected to be $0.5 million and is being funded by the Elections Reserve. As part of the 2018 Budget Council approved a request to create a new Communications Division and 1.0 additional FTE for a Manager of Communication Services. The landscape for municipal communications has changed and the City is lagging behind other municipalities and behind the community's expectations. More than ever, the public today demands greater responsiveness, accountability and transparency in government. As well, stakeholders and residents are expressing a desire for convenient information available when and where they want it. If the City is expected to improve in these areas, more resources are needed. The net increase of 13.1% in Corporate Information Services reflects the increase of individual applications and systems that are supported. Investment in IT security also continues to be one of the significant growth areas of the City. In 2018, the City will be updating the Microsoft Office tools currently being used and will move to a subscription based product. An amount of $140,000 has been transferred from Reserve to cushion the impact in the 2018 budget. Also included in 2018 is a contribution to reserve in the amount of $75,000 for the purpose of replacement of the telephone system that will need to be undertaken in the near future. Gross expenditures are $3.7 million with approximately $3.2 million of this amount being the City s portion of Peterborough Technology Services (PTS) costs incurred to provide employees and equipment to support the City s technology needs. Approximately $1.3 million of total costs incurred is charged out directly to City Departments where there is a need to allocate specific charges due to the sharing of costs either with the Province or the County or the activity receives a fee for the service. The net $2.2 million residing in Corporate Services represents the non-allocated charges. 31

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53 Recommendation That any unused Peterborough Technology Services Budget, at the end of 2018, be transferred to the Electronic Data Processing (EDP) Reserve, subject to the overall year-end position and that if actual 2018 costs exceed the 2018 Budget, funds may be drawn from the EDP reserve. The Facilities and Planning Initiatives Division provides project management resources to capital projects throughout the Corporation. For 2018, in addition to the projects described in this section, the Facilities and Planning Initiatives Manager will manage: New arena complex - Phase 2 tendering and Phase 3 construction start. Construction completion of the Barnardo Park Rehabilitation Project. Construction completion of a new park washroom/change facility at Nicholls Oval Park. Design and construction of new washroom facility at Beavermead Park Campground. Development of a New Athletic Facility in partnership with Peterborough Victoria Northumberland and Clarington Catholic District School Board. These projects are listed in their corresponding divisional capital budgets. 33

54 Corporate Services Departmental Summary - Capital Budget Corporate Services Summary - Tangible Capital Asset 34

55 Corporate Services Summary - Other 35

56 Property The 2018 Capital Budget for Property reflects the consolidation of facility costs for numerous Departments/Divisions. Among the largest expenditures planned for 2018 is the replacement of Roofing and HVAC Units at the Peterborough Memorial Centre at a cost of $1,755,000, the continuation of LED Retrofits at various facilities for $250,000 and the replacement of the condenser at the Evinrude Centre for $160,000, which was pre-committed by Council through report CPPS dated September 25,

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58 Facilities and Planning Initiatives Construction of New Athletic Facilities Community sports continue to make increasing demands on the limited fields and facilities provided by the City and other partners like the Board(s) of Education, Fleming College and Trent University. The approved budget in 2017 enabled staff to assess options for a partnership-based field project in conjunction with the Peterborough Victoria Northumberland and Clarington Catholic District School Board. Design will commence in 2018 with construction proposed for Costs will be shared 50/50. 38

59 Information Services 39

60 City Departmental Projects This project includes various projects that business units have requested IT resources to assist with. These requests are for either implementation of new software that will improve efficiencies or for major upgrades to existing business systems. City Technology Projects and Capital Improvements Machinery and Equipment/Computer Hardware and Software, including Server replacements, Notebook computers and software totaling $207,000. Peterborough Technology Services (PTS) City Capital Expenditures Peterborough Technology Services is the Information Technology (IT) department that is jointly operated by the City of Peterborough and the Peterborough Utilities Group. One of the many benefits of having a shared IT department is there are opportunities to share costs. This capital account is used for hardware, software, labour and miscellaneous costs that are shared between the City and the Peterborough Utilities and the amounts shown represent the City s portion. An example would be capital costs associated with the UNIX server, which hosts corporate applications for both organizations. 40

61 Corporate Services Other 41

62 Amanda Software Upgrade Amanda is the corporate software for property records and requires an extensive upgrade. The specific components of the project include: a Plans review module and a Portal for on-line services. Enterprise Software Modernization Specific computerized applications due for replacement include: Program Registration and Facility Booking Software - In 2016, through Report CPFS16-018, Council awarded a contract to PerfectMind for the City's Program Registration and Facility Booking Software. Financial Enterprise Resource Planning software - In 2017, through Report CPFS17-036, Council awarded a contract to SAP for a corporate Financial Enterprise Resource Planning solution. Property Taxation Software - the current product being used meets today's legislative requirements, but does not include any of the electronic customer service offerings that are expected in today's business environment. The product will be replaced as part of Phase II of the SAP implementation. Corporate Website Refresh The City's website is a key communication tool for the municipality. has over 200,000 visitors per year, who view more than 400,000 pages annually. City residents use the website to access information on City business, register for programs, pay parking tickets and purchase products and services. Increasingly, we are using the website to engage in twoway communication with residents through online surveys and links with social media. This project is a major redesign of the City s website. 42

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64 Phase-in of Development Charges In consideration of Report CPFS Development Charges, Council approved a phase-in of the City-Wide Uniform Charge as follows: August 1, %, January 1, %, January 1, %, which resulted in lost Development Charge revenues of $1.3 million. This provision is to ensure that phase-ins are funded from non-dc sources. This capital project is to fund the phase-in amount by transferring an equal amount into the Development Charge Reserve over the period Hospice Peterborough Funding Request Based on Report CPFS15-036, 2016 Budget Guidelines dated July 27, 2015, Council approved the following recommendation: That, with respect to the Hospice Peterborough Renovation Project, i) the City commit, in principle, to provide $1.5 million toward the project construction costs over a three-year period 2016 to 2018, subject to a satisfactory funding agreement being reached, and ii) That the 2016 Draft Capital Budget includes the first $500,000 annual contribution. Peterborough Humane Society - New Animal Care Centre Capital Campaign Based on Report OCS dated May 30, 2016, and a presentation by the Humane Society, Council committed to support the capital campaign over five annual instalments. Motion b) and c) read as follows: b) That the City of Peterborough approve a $1.5 million capital campaign contribution to the Peterborough Humane Society, to be paid in 5 annual instalments over a five-year period from 2017 to 2021, in support of the $9.5 million Peterborough Animal Care Centre at 1999 Technology Drive c) That the City of Peterborough directly pay the Development Charges for the Peterborough Humane Society Animal Care Centre at 1999 Technology Drive in the amount of approximately $186,000, and that the payment be made in 2 annual installments of approximately $93,000 commencing in 2017; e) That any cost sharing for the provision of municipal road and services for 1999 Technology Drive, be waived. Due to budget constraints in 2018, $100,000 of the $1.5 million has been deferred to The last contribution of $500,000 has been split over budget years. 44

65 Fairhaven Capital Funding As part of Report CPFS dated September 4, 2012, Council resolved that beginning with 2013, subsequent draft Capital Budgets include a provision for on-going capital funding for Fairhaven. The current provision is $204,000. Canadian Canoe Museum - Capital Build On June 28, 2017 representatives from the Canoe Museum made a presentation to Budget Committee seeking $4.0 million in financial support from the City, to be cash flowed over a number of years in support of a new $50.0 million facility. The Draft Budget, along with Report CSD dated November 27, 2017, recommended approval of $4.0 million in funding for the Canoe Museum new facility to be paid in increments over five years. After deliberation, Council ultimately approved the following: a) That a total of $4 million in capital funding for the Canadian Canoe Museum for its proposed new facility, be approved; with the City contributions paid in increments over eight years, beginning in c) That an annual Service Grant to be provided by the City to the Canadian Canoe Museum be set at the current 2018 amount of $108,362, without further increases for eight years. 45

66 Legal Services Departmental Summary Operating Budget The Office of the City Solicitor (OCS) provides legal advice and general legal services to the Corporation, Council and various local boards. This Division also represents the City as counsel and advocate before the courts and administrative tribunals. Also included in this activity is the administration of the sale and purchase of municipal property and, in conjunction with Planning and Development Services, the management of the City's industrial parks. The Provincial Offences Office provides administration and court services for the processing of offences under the Provincial Offences Act. For 2018, POA fine revenues have been reduced to more accurately reflect actual experience. Net revenues are divided between the City and the County of Peterborough, based on weighted assessment. The County share for 2018 is 54.5%, the same as in The City s share is 45.5%. As a member of the Risk Management Committee, the OCS works closely with the Insurance and Risk Management Coordinator on claims management involving litigation and insurance coverage for contractual and other risk management documents. 46

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68 Utility Services Departmental Summary Operating Budget The Utility Services Department directs, manages and coordinates the construction and maintenance of all public infrastructure in the City (except for water treatment and distribution and the electrical systems), for the benefit of City residents, business people and visitors, through the following Divisions: Engineering and Construction and Infrastructure Planning The Division prioritizes, co-ordinates and manages the maintenance, rehabilitation and development of the City s road and related infrastructure, sidewalk, conveyance sewer system and stormwater management facilities. The Division also works to establish and improve the City s Capital Asset Management Plan to aid in the best management practices for the City's capital assets and to provide engineering review of development applications and growth management plans. Public Works Provides repair and maintenance services seven days a week on a 24-hour basis for all client groups. Emergency repairs are made on demand to ensure the performance of fleet units for essential services. Environmental Services The Division operates and maintains a Class 4 wastewater treatment facility, 11 sewage pumping stations, Storm and Sanitary sewer collection systems and an accredited laboratory in compliance with Environmental Approval Compliance requirements. The Division also operates and maintains the Centennial Fountain in Little Lake. Waste Management includes the collection, processing and disposal programs/services for garbage, recyclables, green waste, large articles, hazardous waste and electronic waste. The Division manages the Peterborough County/City Waste Management Facility the Material Recycling Facility, the Household Hazardous Waste Depot and the Harper Road Composting Facility. Transportation The Transit Division provides conventional public transit service to within 450m of 90% of the residents of the City as well as a parallel public transit service for people with physical disabilities. The Division also provides Municipal Parking, Transportation Planning, Traffic Operations and Transportation Demand Management (TDM) services for the City. 48

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70 Utility Services Departmental Summary Capital Budget 50

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72 Utility Services Administration - Operating Budget 52

73 Utility Services Administration Capital Budget Street Light Review and Upgrade This program will address deficiencies related to streetlight poles, arms, underground, and the City's decorative street lights. The work program will not include warranty items from the LED retrofit program approved by Council in

74 Emerald Ash Borer (EAB) Management Plan The Management Plan was well documented in Report USDIR and involves identification of EAB infested areas, selected tree removals (with subsequent replacements) and treatments. Included in all of the foregoing is a significant public education process. The Plan was revised as more accurate inventory and monitoring data became available. EAB was discovered in isolated areas of the City in In 2015, a rotating 2-year treatment cycle of Ash trees was initiated. Selective removals began in Emerald Ash Borer

75 Flood Reduction Master Plan Projects 55

76 Curtis Creek - Tivey Street Outlet Improvements Flooding along Curtis Creek is due to the system receiving more water than can be contained within the channel corridor and conveyed through bridges and culverts. The culverts at Tivey/Rogers Street need to be upgraded to minimize the risk of flooding the properties south of the current inlet pipe. Following the culvert works, the City will begin to program the Curtis Creek stream channel rehabilitation between Rogers Street and Armour Road. The culvert work proposed along Tivey Street is a prerequisite to any riverine channel works upstream and further flood reduction projects along Rogers Street. Bethune Street Diversion - City Funded This is the City portion of the overall project. Works ineligible for the shared funding such as overhead, land acquisition, enhanced pedestrian and cycle facilities, etc., are covered under this project. The project provides a major flood diversion of Jackson Creek and, at the same time, improves the road condition along an arterial street. The ultimate design will provide major upgrades to existing pedestrian and cyclist infrastructure. A federal funding aid application (up to a maximum of $1.5 million) has been made for this project. 56

77 Curtis Creek - Euclid Ave Culvert Replacement Euclid Avenue Culvert Replacement project is a priority project in a series of recommended improvements which would mitigate flood damage within the Curtis Creek watershed. The City has applied for federal funding for this project up to a maximum of $675,000. Brookdale Watershed Improvements The funding for 2018 is required for the completion of works to Brookdale Channel upstream of McDonnel Street. North-East Jackson Watershed Improvements The immediate needs for this project will be the Simcoe Street 100 year pipe from the Otonabee River to George Street. The following needs will be completed subsequent to this; - Construction of a relief storm sewer parallel to the existing sewer from Hilliard Street along Phillip Street, McClennan Street, Gilbert Street, Elizabeth Avenue and Nicholls Street; and - Upsizing the existing pipe to 100 year capacity from Nicholls Street and Dumble Avenue and along Parkhill Road and Water Street. 57

78 Flow and Rainfall Monitoring The purpose of flow monitoring is to collect accurate, current information on the flow characteristics of the study area, and the associated rainfall intensity, total volume, rate, and duration. Information collected will be used for various applications including computer model calibration; development of area specific modelling parameters relative to design values; and inflow and infiltration identification and quantification. 58

79 Engineering, Construction and Infrastructure Planning - Operating Budget 59

80 Information and condition of infrastructure assets is collected and used as input to the capital program development. Work of this nature is ongoing, allowing staff to utilize the information to create proactive maintenance programs necessary to minimize life cycle costs of the City s infrastructure. Through the Capital Asset Management Program approach, the programming and coordination of capital projects allows the City's infrastructure renewal process to make the best use of capital dollars. Recommendation That any 2018 Engineering Overhead surplus be transferred to the Engineering Design and Inspection Reserve, subject to the overall year end position and that if actual 2018 Engineering costs exceed the Budget, funds may be drawn from the Engineering Design and Inspection Reserve. In 2017, Council approved the retrofit of all of the City's Cobra Head fixtures to LED. This will significantly reduce energy consumption and maintenance costs. Phase two of this program will evaluate the City's decorative fixtures to determine feasibility of retrofitting these fixtures to LED. 60

81 Engineering, Construction and Infrastructure Planning - Capital Budget Arterial Streets 61

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83 Hilliard Street Reconstruction - Marina Boulevard to The Parkway This project will address the aging storm sewers on Hilliard Street during the installation of the PUC watermain. Some geometric adjustments may be required to the signalized intersection of Hilliard Street and Marina Boulevard. The project will further aid in the Bears Creek By-pass project that began construction in Funds required in 2018 have been pre-committed by Council via Report USEC when awarding the construction contract. Chemong Road North Urbanization - Milroy Avenue to North City Limit This project would involve pavement, curb and gutter, sidewalk(s), storm sewers, potential for bike lanes, and turning lanes. This project is to improve the road condition and level of service along the north/south arterial street to an urban cross section to coincide with improvements triggered by area development. In 2017, staff worked with the developer on a servicing agreement for the works external to the subdivision funding requests are required for the developer to continue moving forward in an effort to complete the conditions of the subdivision. McDonnel-Gilchrist Rehabilitation This project is anticipated to include the formalization of McDonnel Street with the installation of sidewalk, cycling lanes and new curb and gutter from Park Street to Donegal Street and improvements to Gilchrist Street south of McDonnel Street. Also included in the project are sanitary sewer upgrades on Gilchrist Street north of McDonnel Street in keeping with the Sanitary Sewer Master Plan Study completed to reduce sanitary sewer backups. Storm sewer works are required for the Brookdale Channel outfall that is proposed to outlet at the Donegal Street Bridge. Pioneer Road Upgrades and External Servicing The development of the Trent Research and Innovation Park (TRIP) will require ongoing municipal investment to ensure that adequate municipal services are in place to support future employment growth. Phase one construction to service the majority of the Trent Research and Innovation Park will be completed in 2018 from Nassau Mills Road to the west entrance of the TRIP. 63

84 Parkhill Road West - Wallis Drive to West City Limit This project will involve pavement, curb and gutter, sidewalk(s), bike lanes, storm and sanitary sewers, turning lanes and signalization. The vertical alignment of the road will be improved and an urban cross section will be constructed. A Schedule C Class Environmental Assessment, including an Environmental Study Report is complete with the preferred alternative endorsed by Council. The major road works will be designed, tendered and constructed in one phase although construction will span multiple years. Construction commenced in 2015 with works at the Parkhill Road West and Wallis Drive intersection, the installation of a large storm outlet through the Parkhill Sanitary Pumping Station property and the urban road cross section between Wallis Drive and Ravenwood Drive. The entire project is scheduled for completion in the fall of The project cost will be more accurately defined during the detailed design. It is also anticipated that flood reduction measures will be required as well as sanitary sewer upgrades to address the bottleneck issue within the existing system. Television Road Widening Lansdowne Street to Parkhill Road Bridge inspections, which are done every two years, have identified the crossing of Meade Creek to be critical. The funding in 2018 is required to initiate the Environmental Assessment of Television Road to better understand the ultimate configuration of the crossing. The 2019 funding is required to supplement the existing funding for the subsequent bridge construction. Chemong Road Parkhill Road West to Parkway Right of Way Major reconstruction to widen this road to five lanes of traffic, by the introduction of a centre turn lane, was identified in the Transportation Master Plan. This work is necessitated by an increase in traffic volumes and commercial properties. 64

85 Collector and Local Streets 65

86 Extension of Crawford Drive to Harper Road The project timing is driven by development interest in the area. Funds previously approved, were re-allocated to other projects through the 2014 budget process and are now being reintroduced into the budget to support the development application of a hotel and casino site. Included in the project scope is the closure of Crawford Drive west of the Harper Road Intersection and a new connection from Crawford Drive to Harper Road northwest of the development lands. The works will be completed in conjunction with the development of the Casino/Hotel site and will be subject to an external servicing agreement with the developer. The funds for 2018 and 2019 have been pre-committed through Council approvals. Various Road Resurfacing The Roads Needs Study included detailed pavement condition reports for each road. A Pavement Condition Index was created for each road section based on the field data collected ranging from zero (Failed) to 100 (Perfect). Based on the Pavement Condition Index and Pavement Deterioration Models, various pavement management categories are assigned to each road section to determine the overall best maintenance and rehabilitation planning scenario. The Resurfacing Program is identified through the City s overall Road Needs Study. In general, the road resurfacing budget will be allocated to streets which require surface treatment only, or to streets involved with underground infrastructure replacement/rehabilitation where additional paving is desirable. This project is partially funded through the Ontario Community Infrastructure Fund (OCIF) to provide a steady source of predictable, long-term infrastructure funding. 66

87 Bridges 67

88 OSIM Bridge Preventative Maintenance Program Following the bridge condition inspections, this project maintains the structures in good repair. The project funds will generally accommodate the major rehabilitation of 1-3 structures per year and minor rehabilitation to several others. Bridge Inspection Program The structural integrity, safety and condition of every bridge is to be determined through the performance of at least one inspection every two years under the direction of a professional engineer and in accordance with the Ontario Structure Inspection Manual (OSIM), published by the Ministry of Transportation (O. Reg. 160/02, s. 2 (2)). 68

89 Sidewalks Various New Multi-Use Trails For 2018, several trail projects found throughout the budget have been combined under USD to create one larger, more comprehensive Trail Project. Active transportation is a general term for the use of human-powered, non-motorized modes for transportation such as walking, running, cycling, and rollerblading. The City of Peterborough prioritizes active modes of transportation that foster a cycling and pedestrian network with a high degree of connectivity, safety and local context sensitivity. Various New Sidewalk Installations The City has updated the Sidewalk Implementation Procedure to include notifying residents and Ward Councillors, that will be directly impacted by the immediate construction program, with sufficient time to allow dialogue between the residents and staff ensuring mitigation measures are taken. Issues that cannot be resolved are brought to the attention of Council. 69

90 Sanitary Sewers 70

91 Sanitary Sewer Master Plan Implementation Inflow and Infiltration (I-I) of clean water increases the flow in the sanitary sewer causing basement flooding, environmental hazards, greater wastewater treatment costs and reduced sewer capacity for future growth while decreasing the sewer system s lifespan. Various sources of I-I sources have been discovered and now that the City has located these sources, the next step is remediation through detailed design and construction to remove the I-I from the City s sanitary system. Staff will continue to investigate and eliminate I-I sources throughout the City. Murray Street Sanitary Rehabilitation - Cambridge Street to Cross Street Issues have been reported by residents in the area during high intensity storm events. With the scheduled PUC project, USD will replace sanitary sewers throughout a portion of the PUC project to eliminate the sag that currently exists within the sanitary main line. PUC will lead the project with key City involvement during the design and construction stages. The PUC project will involve the full removal and replacement of the watermain from Cambridge Street to Donegal Street. 71

92 Kawartha Heights Boulevard Sanitary Twinning This project consists of twinning portions of the sanitary sewer system on Kawartha Heights Boulevard from the walkway east of Woodglade Boulevard to Bayleaf Court. The City's Inflow and Infiltration study has identified this area to be susceptible to sewer backups during intense storms. Armour Road Sanitary Twinning - Munroe Avenue to Douro Street Identified through the Inflow and Infiltration study, this is a priority project. The intent of the project is to reduce the likelihood of sewage backup into basements by installing a second sanitary sewer pipe in the specified location. 72

93 Storm Sewers City Wide Storm Water Quality Master Plan Implementation Report USEC17-001, adopted by Council at its meeting of February 13, 2017, endorsed the Stormwater Quality Master Plan. This project presents an opportunity to manage stormwater quality discharges potentially impacting our creeks and rivers. The City is mandated to complete specified work by the MOECC related to our existing stormwater facilities throughout the city. The Stormwater Quality EA Management Master Plan was developed as part of the overall evaluation and solution to the existing and potential concerns within the City. 73

94 Public Works Division - Operating Budget The Public Works Division is responsible for delivering a wide range of services including winter control, pavement maintenance and cleaning, and parks and forestry maintenance. Solid waste collection, while it is performed by Public Works staff, is shown in the budget under the Environmental Services Division to better reflect its funding from the Waste Management Reserve Fund. For Winter Control, the 2018 Budget will see the annualization of two new FTEs that were approved as part of the 2017 Budget. For the purposes of the 2018 Budget, Public Works will see an increase in turf grass maintained of approximately 13 hectares, the full annualization of 0.5 FTE to assist with additional turf grass maintenance, and a new five year contract for the Goose Control program for the shores of Little Lake and Del Crary Park. Administrative costs are funded through other activities based on an overhead percentage charged on direct Public Works labour incurred. These activities include Public Works activities, other City Division s activities, as well as work performed for outside customers. Equipment costs are charged directly to activities as utilized by applying an hourly rate. These are, in effect, internal rental rates, which offset the repair, maintenance and replacement costs of the equipment. 74

95 75

96 Traditionally, surplus funds for the Winter Control activity have been transferred to a Winter Control Reserve to be used in a year when the city experiences severe weather events. The balance of the reserve is $548,000 and represents approximately 15.4% of the 2018 budgeted amount of $3.6 million. Recommendation That any unused portion of the 2018 Winter Control Budget that may exist at year-end be transferred to the Winter Control Reserve, subject to the overall year-end position and, that if actual 2018 Winter Control costs exceed the 2018 Budget, funds may be drawn from the Winter Control Reserve. 76

97 Public Works - Capital Budget 77

98 Public Works Relocation Project In 2014, the City purchased the Coach Canada property at 791 Webber Avenue. The purpose of this purchase is to relocate the Public Works operations and Fleet maintenance functions to the new property. It is anticipated that, when fully developed, this site will support the Public Works operation for the next years. The present construction estimates to transform the 791 Webber Avenue property into a full service Public Works Operations facility is $22.1 million. The cost estimate includes a new, modernized sand/salt/brine storage facility, equipment storage building, indoor heated truck wash, stores area, covered truck bays and a renovated shop and office area to meet the needs of Public Works operations. This compares favourably to the estimated $57,000,000 (2017 dollars) required for a new yard previously proposed on Fisher Drive. Sidewalk Reconstruction The municipal sidewalk inventory totals 399 kilometers. Sidewalks typically have a 50-year life cycle. Life cycle costing provides a base line performance measure to verify if replacement schedules and funding are sufficient to meet the established life cycle. The recommended budget provides funds to replace approximately 3,800 linear metres of sidewalk or 1.0% of the existing inventory. Vehicle and Equipment Replacement and Enhancement The following vehicles and equipment are scheduled for replacement in 2018 at a total estimated cost of $988,000: One Sewer Video Truck, Three Sidewalk Units, Six Grass Cutting Units, and One Light Duty Truck. Through Report CPFS17019, dated May 8, 2017, Council pre-committed $1.5 million towards this project 78

99 Urban Forest Strategic Plan The Urban Forest Strategic Plan for the City was updated in 2016 through Report USDIR The Plan included a schedule for implementation that required further Council approval. The 2018 Budget provides for $75,000 to implement the plan and $95,000 to plant trees. 79

100 Transportation Division Operating Budget The Division is responsible for the operation of the municipal transit system, on and off-street municipal parking, the King Street and Simcoe Street parking garages, operation and maintenance of traffic signals, signs and pavement markings, parking by-law enforcement and adult crossing guards. The Transportation Demand Management activity implements the various recommendations in the Transportation Plan including the cycling network, sidewalk policies and priorities and community outreach programs such as Shifting Gears. 80

101 Public Transit Operations Transit operates the conventional public transit system, which is designed to provide service within 450 m of 90% of the residents of the City, as well as a parallel specialized transit service for people with disabilities. The operating budget for transit operations is based on providing 151,020 hours of service in 2018, up from 145,100 hours in The increase in hours of service forecast for 2018 is largely due to the launch of the new Community Bus route in early 2018, implementation of a second express route for Fleming College in the fall of 2017, and additional Handi-van capacity that will be implemented in early 2018, once new vans arrive. The base budget also includes a continuation of the special New Year s Eve transit service, and the Statutory Holiday transit service introduced in The estimated cost of these services is $142,000 after accounting for fare revenue, and sponsorship opportunities will continue to be explored to help fund these service enhancements. Transit ridership levels in 2018 are expected to increase over the record levels set in 2017, when total system boardings are forecast to reach just over 4,000,000 riders on the conventional system and 40,000 riders on the specialized service. The increased ridership on the conventional system is largely due to implementation of Phase 2 of the Fleming Express Service, plus the significant increase in enrollment at Trent University and Fleming College, trends that will continue to improve Peterborough Transit Bus ridership levels in No fare increase is being recommended in In 2018, Phase 1 of the Transit ITS program will be rolled out providing real time information on bus schedules and stop arrival times over the web, on Smartphones, and at the terminal. In addition, the transit stop upgrade program and Transit Garage relocation study, initiated in 2017, will be completed in The 2018 budget includes the continued contribution of $600,000 to the Transit Reserve. 81

102 82

103 Provincial Gas Tax In October 2004, the Province of Ontario announced the Gas Tax Rebate Program, which provides 2 cents/litre of gas tax to assist in funding improvements to service delivery that support transit ridership growth. The program generates funds for public transportation, which is subject to change annually based on annual sales of gasoline. The total allocation is based on 70% transit ridership and 30% municipal population. Public transportation ridership will include the totals of both conventional and specialized public transportation services. Under the program, it is estimated the City will receive $1.6 million in The funds are placed in a Provincial Gas Tax Reserve Fund and then transferred from the reserve fund to finance authorized expenditures. Provincial gas tax funds cannot be used to offset expenditures in other municipal departments. For 2018, an amount of $1.55 million will be drawn from the Provincial Gas Tax Reserve Fund to offset expected costs. The authorized expenditures include: Public transportation capital expenditures that promote increased transit ridership, and are above a municipality's baseline spending. Public transportation operating expenditures that are above a municipality s baseline spending. Capital expenditures that provide improvements to transit security and passenger safety and are above a municipality s baseline spending. Major bus refurbishment on any fully accessible, or to be made fully accessible, public transportation vehicle. 83

104 Parking The completion of the Strategic Downtown Parking Management Study in 2017 provided 25 recommendations for the City to consider in managing its downtown parking supply over the next 10 years. Increased fines and revenues from the higher parking rates recommended in the study will support investment in new downtown parking capacity and offset losses in annual revenue from lost parking spaces due to the closure of Louis Street and the Louis Street parking lot, combined with the loss of up to half of the parking spaces in the Brock Street lot. Recommendation That any unused Parking Budget, at the end of 2018, be transferred to the Parking Reserve, subject to the overall year-end position and that, if the actual 2018 Parking costs exceed the 2018 Budget, funds may be drawn from the Parking Reserve. New parking technologies, beginning with the introduction of a parking app to allow payment by phone, will be introduced in 2018 as part of a modernization program for the parking system. The Parking Reserve contribution is once again eliminated for 2018, and with the budgeted contribution to 2018 Capital will have an uncommitted balance of $54,000. Parking control services are provided by Securitas Canada. The current contract is for a period of five years starting April 1, 2016 until March 31, 2021, with the option for three one-year extensions at the sole discretion of the City. 84

105 Traffic The City operates 128 signalized intersections across the City and a number of upgrades are proposed for In addition to the annual funding for traffic signal equipment upgrades and accessibility features, two new multi-year capital programs will be initiated. A traffic signal controller replacement program will upgrade and modernize older traffic signal controllers to provide enhanced traffic control functionality and co-ordination. An intersection pedestrian safety program will also be initiated to provide enhanced pavement markings and countdown pedestrian crossing signals at our busiest intersections, beginning in the downtown core. Recommendation That any unused Traffic Signal Maintenance Budget at the end of 2018, be transferred to the Traffic Signal Reserve, subject to the overall year-end position and that, if the actual 2018 Traffic Signal Maintenance costs exceed the 2018 Budget, funds may be drawn from the Traffic Signal Reserve. The Traffic Operations Review project will be initiated in late 2017, or early 2018, and will develop recommendations for short term operational and safety improvements to intersections, signal timing changes, traffic operational policies, and system wide optimization of traffic flows through enhancements to the City s computerized traffic signal system Beginning in 2011, Council directed staff to transfer any unused Traffic Signal Maintenance Budget at the end of the year to the reserve. The reserve is fully committed at the end of

106 Transportation Demand Management (TDM) Peterborough s TDM programs include improving the infrastructure that supports walking, cycling, carpooling and public transit while also promoting these modes of transportation. Partnerships with Peterborough Green-Up and the Peterborough County-City Health Unit are important for program implementation. The Division works with the Engineering and Construction Division, Infrastructure Planning Division and the Planning Department to implement and prioritize new trails, cycling facilities and sidewalk construction. 86

107 Transit - Capital Budget 87

108 Phase 2 - Intelligent Transit Systems Phase 2 of the Transit ITS program will build upon the technology platform developed in Phase 1, and add additional Intelligent Transportation infrastructure to the transit fleet. This will include interior and exterior cameras and exterior collision warning sensors to warn drivers of hazards that may not be visible or hidden in blind spots. Transit Garage Replacement Site Selection Study Funds in 2017 were used to initiate a Transit Garage relocation study that will entail complete design work for the selected location and securement of necessary approvals. This would result in a "shovel ready" project that may be eligible for future infrastructure funding programs. Downtown Transportation Hub and Route Review The 2018 budget of $200,000 will fund a two-part study. Part one will examine potential changes to transit routes across the city to better serve customers, increase ridership, and position the City to serve new growth areas. The transit route structure will be reviewed to determine the potential benefits of moving to a distributed hub route system as opposed to a central hub where all routes start and end. A distributed hub system may significantly reduce the required footprint and costs for a new downtown terminal. Part two of the study will initiate the longer term planning to develop a conceptual design, cost estimate, and implementation strategy for the ultimate replacement of the downtown transit terminal building to better define future budget requirements. The budget requests shown starting in the year 2022 are as recommended in the 2012 Transit Operations Review. Longer term funding requirements will be updated as part of this study. 88

109 Parking - Capital Budget Parking Equipment Purchase In 2018, it is anticipated the funds will be used to purchase additional pay and display machines for the downtown area; as well as other technology upgrades to implement real time parking management applications in the garages. 89

110 Traffic and Transportation Capital Budget 90

111 Traffic Signal Controller Replacement Program This multi-year program is to replace the City's aging on-street traffic signal controller equipment. The City operates and maintains 130 signalized intersections across the city of which 25% are in excess of fourteen years old and have reached the end of their service life. Demand Management Capital Budget King Street Cycling Project As a follow up to Report USDIR Streetscape and Public Realm for Charlotte Street from Aylmer Street to Park Street, Council recommended that a King Street cycling lane concept design study be included in the 2018 Capital Budget. The cycling infrastructure options will be explored and a concept design prepared in 2018 with implementation planned for

112 Environmental Services Division Environmental Protection Operating Budget 92

113 All Waste Water Treatment Plant and pumping station expenditures are funded from the sewer surcharge, which is collected by the PUC on water bills. The revenue from extra strength surcharge agreements, and hauled sewage from surrounding counties, will continue to offset plant operating costs. The 2018 Budget has a sewer surcharge rate of 97.1% ( %), an increase of 2.2% over Average Daily Flows at Waste Water Treatment Plant Description Average Daily Flows (M 3 ) 47,334 43,138 44,051 44,251 39,404 37,930 44,000 49,000 Million Gallons per Day (est) 2018 (est) The above data reflects the fact that flows to the Plant will fluctuate depending on weather conditions as well as inflow and infiltration. Continued enhancements and maintenance to the sanitary sewer system will help reduce the overall unwanted flows to the plant, and delay future costly expansions. A comprehensive preventative maintenance program on the sanitary sewer trunk mains will continue to provide safe and reliable conveyance of wastewater to the Plant for treatment. Regular Storm Sewer and catch basin cleaning will improve surface water drainage to reduce flooding on city streets. The 100% reduction in the net tax requirement for Storm Water Collection is due to the new Storm Water Protection Fee which is now funding this activity. Since January 1, 2017, the City has been operating the Millbrook WWTP and undertaken certain activities related to the Township sanitary collection system all under contract to the Peterborough Utilities Commission. 93

114 Environmental Protection Capital Budget Waste Water Collection Equipment Upgrades and Replacement The Closed Circuit Television Inspection truck is 17 years old and has outlived its life cycle. Annual maintenance costs are increasing and it is becoming increasingly difficult to obtain parts and services for this vehicle and its on board equipment. The Fleet Reserve Fund has collected $300,000 of depreciation funding toward the replacement of the CCTV Inspection Truck. A sewer lateral camera is an additional piece of equipment proposed for the CCTV Inspection truck. This will allow better and less invasive analysis of sanitary sewer lateral conditions. 94

115 Equipment Upgrades and Replacements The 2018 requests continue the preventative maintenance program at the WWTP with the replacement of variable frequency drives, various laboratory small equipment and a WIFI phone for the plant. 95

116 Harper Road Landfill - Former Waste Disposal Site The City of Peterborough operated a landfill site from approximately the mid-1940s to the mid-1960s in the area of Harper Road and Sir Sandford Fleming Drive. This is not an engineered facility and the site received both municipal and industrial waste. Recently, (2008 onwards) some work was performed which was initiated to address PCB seeps to surface water in the surrounding surface water streams. A budget of $1,000,000 is proposed for 2018 to be used in the application for an Environmental Compliance Approval (ECA) and potentially implementing certain aspects of the ECA. Nelson Landfill Monitoring Program The City, in conjunction with Otonabee South Monaghan Township and Fred Nelson and Sons, used a licensed landfill site in the township on lands owned by Fred Nelson from the early 1970s to mid 1980s. Environmental legislation under the EPA requires on-going monitoring for all landfills registered in Ontario to ensure there are no risks to human health or the environment as a result of landfill operations. While all three parties share annual costs equally, the City has taken a lead role in the monitoring program and liaison with Ministry officials. Results from the 2014 monitoring program revealed the requirements for significant remedial action measures to be carried out on the site to bring the former landfill back into compliance with current Environmental Legislation. Estimates range from $1,000,000 to $3,000,000. Additional sampling occurred in 2017 and remedial measures will be defined during negotiations with the Ministry of the Environment and Climate Change (MOECC). However, without a new cost sharing agreement in place, no further work on this project is anticipated. As negotiations continue with stakeholders and the MOECC, there may be a need to increase the City s share of funds depending on findings of annual results and the framework of the new agreement.. 96

117 Environmental Services Division - Waste Management Operating Budget 97

118 Budget pressures will come from unpredictable selling prices for recyclable material, increased property taxes associated with the landfill, fluctuating Stewardship revenues, and a growing need to educate residents in new ways about how and where they can divert wastes. The construction of a new leaf and yard waste composting facility at Bensfort Road continues to be pursued, alongside other potential public and private partnerships for all organic wastes. The current composting facility at Harper Road is slated to close as of January 1, Peterborough County/City Waste Management Facility On July 1, 2002, the City and the County signed an agreement whereby the County became an equal partner in the ownership and operation of the Peterborough County/City Waste Management Facility (the Bensfort site). Under the terms of the ownership agreement with the County, all expenditures (operating and capital), and revenues are shared on a 50:50 basis. Projected tipping fees for 2018 have been reduced to $2.7 million ( $3.2 million) and is based on an expected reduction in contaminated daily cover coming to the landfill. The County will contribute $2.0 million ( $2.0) towards the gross costs of the landfill operation and receive approximately $1.4 million (2016- $1.5) in revenues for a net cost to the County of $0.4 million ( $0.3). The 2018 contribution to the Waste Management Reserve Fund is $660,000, the same as In addition, the City will contribute $227,000 to a Landfill Closure and Post- Closure Reserve, the same as in New, more challenging diversion opportunities continue to be investigated, including organics, reuse, carpeting, and textiles. Waste Management Program Long-term Projections Each year at budget time, staff projects the ten-year revenues and expenditures that affect the Waste Management Reserve Fund. As shown on the following charts, if the $3.0 million Construction and Transfer of leaf and yard compost facility is built in , the reserve fund will move into a deficit position. However, on November 6, 2017 through Report USDIR17-013, Council will be asked to approve a plan to work with a private sector firm for this initiative and apply for provincial funding which will reduce this requirement. 98

119 Waste Management Program Operating Revenue and Expenditure Projections (2017 to 2026) 99

120 Environmental Services Division - Waste Management - Capital Budget Waste Management Program Capital Expenditures and WMRF Projected Balances (2017 to 2027) 100

121 Peterborough Landfill Site Cell 2 of the North Fill Area is expected to be capped sometime in 2018 with Cell 3 continuing to receive waste for approximately five more years. In 2017, a Reuse Building that was set up in the Public Drop off area for furniture and other goods that were considered too good to go to landfill, has been well utilized. 101

122 Construction and Transfer of Leaf and Yard Compost Facility The existing compost site at Harper Road is required by the MOECC to cease receiving new material as of January 1, Accordingly, studies have been undertaken to find, design and get approval for a new compost site. The new site is proposed to be within the lands of the County/City Waste Management Facility on Bensfort Road. Studies have been completed, and applications made to both the Township of Otonabee-South Monaghan (for zoning and land-use changes) and the MOECC (to amend the Certificate of Approval for the landfill to allow for outdoor windrow composting). The City awaits approvals before proceeding with a Request for Tenders for the construction of the composting facility. It is anticipated that construction will occur in

123 Community Services Departmental Summary - Operating Budget 103

124 The office of the Community Services Director is responsible for the following divisions: Arenas, Arts, Culture and Heritage (which includes the Art Gallery of Peterborough, Heritage Preservation Office, Peterborough Museum and Archives, Peterborough Public Library and Market Hall), Recreation (which includes the Marina, Beavermead Campground and the Peterborough Sport and Wellness Centre), Social Services, Sustainability, and the Community Grants program. Community Services Departmental Summary Capital Budget 104

125 105

126 Community Services Administration Division - Operating Budget 106

127 Administration The budget includes the Office of the Community Services Director. Sustainability The activity includes an amount of $50,000 in the budget for the Low-Flow Toilet Rebate Program, funded from the Waste Water Reserve Fund. 107

128 Community Project and Investment Grants The Community Services Department administers and coordinates the City s Community Grants program, in support of local non-profit, community-based organizations that provide direct programs, services, or activities that enhance the quality of life for Peterborough residents in the areas of social services and health, arts, culture, heritage, recreation, or the environment. The Community Project Grant program, budgeted at $21,000, provides grants ranging from $250 to $1,000 to informal not-for-profit organizations located within the geographic boundaries of the city. Annual applications are reviewed through a competitive process by a staff Grant Review Committee, which recommends funding awards for Council approval. The Community Investment Grant Program, budgeted at $230,000, provides grants ranging from $1,000 up to $15,000 as matching funds to incorporated, not-for-profit organizations that are located within the geographic boundaries of the city. There is an annual competitive application process in which eligible organizations can apply for funding. Applications are reviewed by a Councilappointed Grant Review Committee, which recommends funding awards for Council approval. created in 2006 to bring together all of the local charities and not-for-profit organizations that are currently receiving City funding through transfers, operating grants or designated as Municipal Capital Facilities. This program focuses on organizations providing services that are typically provided by the municipality, on behalf of the municipality. Typically, funding levels exceed $15,000 and should not exceed more than 25% of the organization s annual budget. The unique funding arrangement is often supported with a formal service agreement. The budget includes an anticipated $30,000 additional Service Grant to Showplace. New Canadians Centre The support for the New Canadians Centre has been reduced for 2018 and is consistent with 2016 levels. Community Service Grants The City s Community Services Grant program was 108

129 Recommendation That any surplus funds at the end of 2018 for Market Hall be transferred to the Market Hall Capital Reserve for unanticipated maintenance expenses or small capital improvements. That any unused Sustainability Budget, at the end of 2018, be transferred to the Sustainability Reserve, subject to the overall year-end position, and that if actual 2018 costs exceed the 2018 Budget, funds may be drawn from the Sustainability Reserve. 109

130 Community Services Administration Capital Budget Morrow Park Redevelopment Project In keeping with the new Agricultural Society (The Society) agreement, staff will engage an architect in the fall of 2017 and throughout 2018 work with the Society to determine high level design, construction priorities, location of the new track/sand ring, and fund-raising and grant opportunities. Phase 1: Conceptual and detailed design; construction of one new exhibition/storage barn and will include City storage, The Society headquarters, public washrooms and exhibition space. Nogojiwanong The north end of Millennium Park is near the bottom of the original rapids on the Otonabee River. This area was known as Nogojiwanong, or the "place at the foot of the rapids" by the local Mississauga Anishinabeg. There have been preliminary discussions with the Nogojiwanong Friendship Centre and local First Nations about the need for formal recognition of the site and creation of a dedicated space for ceremonial fires. 110

131 Capital Improvements to Showplace Showplace Peterborough is an independently owned and operated not for profit performing arts venue. It has received short term interest-free loans and a capital project grant in its first years of operation. It has also received a one-time grant in 2001 to eliminate an accumulated deficit and an annual service grant since then. It is a Municipal Capital Facility and the City retains a reversionary right. After 20 years in operation, Showplace is facing major capital replacement needs including a roof, HVAC, and seating. It would also like to have a new marquis designed and installed. 111

132 Recreation - Operating Budget This activity includes the cost of providing the necessary staff and resources for the planning, supervision and evaluation of a variety of recreation services. Services under the supervision of the Recreation Division include: community development and community assistance activities, management of outdoor facilities, direct delivery programs and special event projects. The administration budget also includes an allocation for program subsidization of children in recreation programs. The expenses to promote and advertise Division programs, services and rental facilities are included as part of this budget. 112

133 Marina, Recreation and Beavermead Peterborough Sport and Wellness Centre The Peterborough Sport and Wellness Centre (PSWC) is a leisure recreational complex that offers: community recreational programs and services; lifestyle, and wellness fitness programs. The facility includes leisure and therapy pools; exercise studio; fitness centre; three gymnasiums; child minding room and three meeting rooms. The PSWC serves the city of Peterborough and surrounding community in addition to the full-time student body at Sutherland Campus, in partnership with Fleming College. Of the $2.7 million gross budget, $0.59 million, or 22% are funded by Fleming College, as part of the partnership agreement with the City of Peterborough. The Peterborough Marina operation includes a 92-slip marina operating over a six-month period, receiving 900-1,000 boats annually. In terms of financial operating performance, the Marina is projected to generate a modest surplus of $13,300 which is recommended to be transferred to a reserve at the end of Through report CSRS dated September 22, 2014, Council has approved the extension of the operating agreement with ORCA for the operation of the Beavermead Campgrounds for a five year term ( ), with an option to renew for an additional five years ( ). The 2018 Recreation Budget for the campground operation includes a nominal amount for opening and closing processes completed by Public Works. As part of operations in 2018, $90,000 will be transferred to reserve to be used for future equipment and building needs. User fees have been updated to be on par with the market. Recommendation That any surplus funds at the end of 2018 for the Peterborough Sport and Wellness Centre be transferred to the PSWC Capital Conservation Reserve for future capital improvements. 113

134 Recreation Capital Budget Beavermead Campground Park Implementation The $150,000 allocation in 2018 is for the architectural design development drawing, and the detailed design work. Resources will be identified in 2019 for the tendering and construction of a new facility to replace the existing washroom building, at an estimated cost of $650,000. ORCA has confirmed they do not have the resources to facilitate this capital project. Therefore, the project will be led by the City. 114

135 Parks Review and Planning Through Vision 2025, a ten-year strategy for Recreation, Parks, Arenas, and Culture, a need was identified to conduct a comprehensive review of the City's parks and open space, and to establish a parks planning process. 115

136 PSWC Cardio Spin Bike Replacements The project will replace various equipment that are beyond their life cycle and are experiencing increased maintenance costs and down time. Peterborough Sport & Wellness Centre 116

137 Arts, Culture and Heritage Division - Operating Budget 117

138 As an integral part of the Community Services Department, the Arts, Culture and Heritage Division coordinates the operations of the Peterborough Museum and Archives, the Art Gallery of Peterborough, the Peterborough Public Library, and the Heritage Preservation Office. The Division works with other departments and divisions to assist in the development and provision of arts, culture and heritage activities, facilities, services and resources. The Division Manager is responsible for implementation of the Municipal Cultural Plan (MCP) and provides staff support for the Arts, Culture and Heritage Advisory Committee. The Division Manager represents the Corporation as a member of the Peterborough Partnership Council on Immigrant Integration and manages the Immigration Portal. Arts Culture & Heritage Administration/Heritage Preservation Office In 2018, Arts, Culture and Heritage Administration includes: a modest increase in support for the Immigration Portal; capital allocation requests for: funding for a Municipal Diversity, Equity and Inclusion Plan to start in 2020; a modest increase in the Public Art budget; completion of a Heritage Conservation Plan for the Commercial Core Area and an increase to the Heritage Property Tax Relief Program. Peterborough Museum & Archives As an integral part of the collective memory of the community, the Peterborough Museum & Archives preserves, presents and promotes the heritage and culture of Peterborough and area, and also provides other significant heritage programs for the education and enjoyment of both visitors and residents. The Heritage Preservation Office (HPO) is responsible for creating, implementing and administering programs relating to the preservation of historic places in the city including structures, landscapes and archaeological sites. The HPO also provides advice to Council, and liaises with other staff, on a range of issues relating to matters of built heritage. 118

139 Art Gallery The Art Gallery of Peterborough (AGP), incorporated in 1974, is a Registered Charity public art gallery dedicated to exhibiting and collecting contemporary Canadian visual works of art. Information about artists and exhibitions are offered through publications, lectures and educational programs. The 2018 Operating Budget of the AGP reflects an increase in response to Report CSACH17-004, Minimum Artist Fee Payments. This increase will cover the cost of appropriate artist fee payments as recommended by Canadian Artists Representation (CARFAC) and set as a standard by funding agencies. Library It is anticipated that the Library will move back to the Aylmer Street location in late The Library s 2018 budget reflects some internal rationalization to adjust revenues and expenditures based on 2016 year end and 2017 actuals. There are several items listed on the Form 13 "Below the Line" service enhancements endorsed by the Library Board, but not included in the 2018 Budget including: Additional staff resources on the Circulation Desk in the Children s Area on the lower level; a pilot project to introduce a security service solution, and; an increase to the overall hours of operation as a result of the newly renovated facility, which will result in increased revenues from room rentals. Due to having a new building, repairs and maintenance have decreased at the Main branch, but have increased at the Delafosse Branch due to its age. On a go forward basis, the Library should experience increased revenues from room rentals as there are two additional rooms available for rent. 119

140 Arts Culture and Heritage Capital Budget Public Art Through Report CSACH on April 6, 2009, Council approved the recommendation to provide 1% of the annual capital levy for the City's annual capital budget process to fund Public Art. Municipal Cultural Plan The MCP was adopted by Council in April Throughout , staff achieved completion on a number of signature objectives. In 2018, staff will provide support to EC3, as well as work with Geomatics to develop a walking tour application and to make the City s cultural maps accessible on the Community Services Asset Maps. 120

141 Museum Capital Budget Museum Strategic Plan This project is proposed for A Strategic Plan for the Peterborough Museum & Archives (Museum), 2020 to 2025 will serve as a guide to the ongoing successful delivery of heritage services. 121

142 Library Capital Budget Collections Acquisition An annual amount is provided to replace the Library s collection. Collection growth and expansion is managed through the purchase of electronic resources and the downloadable collection. Circulation statistics have shown a marked increase and demonstrate a growing use of the electronic collection. 122

143 Art Gallery Capital Budget Service Improvements For 2018, upgrades are planned for the vault which includes custom storage solutions and equipment. 123

144 Art Gallery Capital Budget - Other 124

145 Arenas Division - Operating Budget The Arenas Division provides a wide range of programming and events that appeal to all members of the community and encourage tourist visits. 125

146 The Arenas Division consists of four arenas: Peterborough Memorial Centre, Evinrude Centre, Kinsmen Civic Centre, and Northcrest Arena. The Division continues a proactive approach in 2018 by strengthening our relationship with agents, promoters and event organizers with a goal of increasing the number of special events held in Arena facilities. Recommendation That any surplus funds at the end of 2018 for Arenas be transferred to the Arena Equipment Reserve for future equipment purchases. Amending agreements were reached in 2017 with the Peterborough Petes and Senior Lakers Lacrosse, providing a stronger financial commitment from the City to both organizations, resulting in baseline adjustments to select revenue and expense recovery accounts. Northcrest Arena continues to provide a single-pad ice surface; although this facility is aging and severely lacks the amenities user groups require and demand, staff are maintaining the facility to the best of their ability. There are six years remaining on the Peterborough Memorial Centre debenture which matures in Annual principal and interest payments amount to $947,

147 Arenas Division Capital Budget New Arena Facility A replacement facility for Northcrest Arena will contain a twin pad facility, team training centre, indoor track, multipurpose rooms, commercial space and leased office space built to a LEED Certified standard. It is anticipated that a new twin pad facility will operate more efficiently and will see a lower municipal cost investment than the existing Northcrest Arena due to economies of scale, energy efficiencies and new revenue potential. The total project cost of $53.8 million includes a competitive pool. This project is eligible for development charges that address community growth needs; however, the balance of funding must be secured through other sources, including funding programs and sponsorships. The prospect of major infrastructure funding for recreation and sport facilities continues to be a central funding source for this project. 127

148 The budget assumes 1/3 funding from each of the senior levels of government. In the event the funding is not available for the pool at the onset of the construction phase, the pool can be eliminated from the initial phase. This ensures the project is shovel ready should funding become available. Peterborough Petes Funding Request As committed through Report CSD dated February 6, 2017, the one-time capital contribution in 2018 will be used to improve in-arena technology to support office and player area improvements. Facility Upgrade-Arena Division For 2018, anticipated expenditures include video surveillance cameras and accessibility upgrades. 128

149 Social Services Division Operating Budget The Social Services Division provides the personnel, corporate administration and other client program and support costs to deliver financial assistance, employment and addictions services, homelessness intervention as well as children s services programs in the City and County of Peterborough. 129

150 For 2018, the total $69.9 million ( $66.0 million) gross expenditures for the Division are split between Social Assistance at $51.5 million, Children s Services at $17.5 million and Community Development Program at $0.9 million. 130

151 131

152 132

153 Social Services Gross expenditures are funded from a number of sources as set out in the following chart. 133

154 Social Services Cost allocated based on formulas set out in the Consolidated Municipal Services Management Agreement The Municipal Costs are allocated to the City and County based on formulas that are set out in the Consolidated Municipal Services Management agreement between the City and the County currently in effect for the period January 1, 2014 to December 31, The following chart provides the key cost sharing ratios. Summary of Sharing Ratios Used to allocate City and County Net Social Services Costs 134

155 Social Assistance For the 2018 year, the Social Services Division will continue to work on a number of existing and new initiatives. Some of the more significant items with budget implications are the following: The end of the upload of Ontario Works (OW) mandatory and discretionary benefits and addictions program to 100% provincial in Take over the management of the Ontario Early Years Children and Family Centres in the City and County of Peterborough beginning January 1, Continue to plan for use of Expansion and Early Learning funds for increasing the number of children accessing licensed child care spaces. As recommended in the Housing and Homelessness Plan, City support of the capital project at the current men s shelter to improve the facilities and programming options. Work with the Emergency Shelter system to renegotiate contracts ending March 31, Plan and implement use of Home for Good supports to chronic homeless as announced in fall of Co-leading the Healthy Kids Community Challenge with Peterborough Public Health, extended to September 30, Ontario Works and Employment Assistance Administration The funding model for Ontario Works (OW) and Employment Assistance Administration and Client Services allows for more 50% provincial subsidy than the municipality is currently using. For 2018, the City could receive an estimated additional $1.5 million from the Province by investing $1.5 million in municipal funds in the 2018 OW admin budget. The provincial database for Ontario Works and Ontario Disability Support Program continues to improve since its implementation in November The electronic monthly claims reconciliation process has been working throughout The process of completing the back claims from November 2014-March 2016 has begun and should be completed by the end of December Any financial adjustments from the original reports will be run through the 2017 year, if necessary. There are still some questions about the accuracy of some financial and statistical reports and the Province continues to work with municipalities to make improvements. Provincial Upload In 2010, the Province began uploading Ontario Works benefit costs. Before the upload, municipalities were mandated to pay for 20% of Ontario Works benefits, including mandatory benefits, discretionary benefits, addictions program and employment assistance. 135

156 The following chart shows the upload rates to full upload in 2018: Ontario Works Cost Sharing of Basic Financial Assistance Ongoing Municipal Share 19.4% 18.8% 17.2% 14.2% 11.4% 8.6% 5.8% 2.8% 0% 0% Provincial Share 80.6% 81.2% 82.8% 85.8% 88.6% 91.4% 94.2% 97.2% 100% 100% In 2018, the final year of the upload, the value of the upload for the City is estimated to be $869,000. Of this amount, approximately $144,000 has been reinvested within the Division, in Homemakers, Discretionary Benefits and Homelessness. The balance was used to address other financial pressures across the City. Looking forward to 2019, the Operating Budget will experience additional financial pressures as a result of the completion of the upload. Ontario Works Mandatory Benefits decreased by 0.4% for the City, and 3.8% for the County. The City/County cost share of Municipal expenses will remain at 83%/17%. This cost share applies to OW and Employment Assistance Administration, Addictions, and OW Formal and Informal child care fee subsidy. In the 2017 provincial budget, the Province announced changes to the Ontario Works mandatory benefits, including a 2.0% rate increase and an increase in asset limits. These changes have contributed to the slight increase in both the City s and County s budgeted cost per case. Details are shown in the following chart. Caseloads in both the City and County are dropping slightly; therefore the budgeted average caseload has 136

157 The following Chart provides supporting calculations for the OW benefits. City and County OW 2018 caseload and cost per case Ref Description City County Total Budgeted Case Load 3, ,888 2 Allocation of Total 83% 17% 100% Projected Actual Case Load 3, , Budgeted Case Load 3, ,850 5 Allocation of Total 83% 17% 100% Case Load Change Over 2017 Budgeted Case Load Increase/(Decrease) Over 2017 Budgeted (0.4%) (-3.8%) (-1.0%) as % Case Load Increase Over 2017 Projected Actual Case Load Increase Over 2017 Projected Actual as % 0.0% 0.0% 0.0% Budgeted Average Monthly Cost Per Case $ $ Year to Date Actual Average Monthly Cost Per Case $ $ August Budgeted Average Monthly Cost Per Case $ $ $ change over 2017 Budgeted $0 $ % change over 2017 Budgeted 0% 0% 15 Total net cost based on caseload $27,009,080 $5,523, Provincial Subsidy at 100.0% $(27,009,080) $(5,523,528) 17 Net Cost $0 $0 137

158 Discretionary Benefits On July 1, 2012, the Province introduced a new funding model for discretionary benefits. The new model caps the total eligible amount for health and non-health benefits at $10 per OW and ODSP case per month, of which the Province s share for 2018 is the uploaded percentage or 100.0% ($10.00). During the 2014 budget process, City Council decreased some of the benefits available and approved funding from the tax base, by $80,000 per year for five years, to 2018 to fund the City portion of the remaining approved benefits. In 2018, the policy limits for some benefits will be increased. The vision policy will be increased from $250 to $350 for eyeglasses, dentures will be increased from $750 each upper and lower plate ($1,500 total) to $850 each upper and lower plate ($1,700 total), and a small increase to the dental fee guide. These changes will be funded within the 2018 budget amounts. Homelessness The Community Homelessness Prevention Initiative (CHPI) provincial funding for Peterborough has increased by $33,146 in 2018 to $3,372,504, from $3,339,358 in The Homelessness budget has increased by $435,778. The main contributor to the increase is Emergency Shelters and Rent Supplements. Volume in the shelters has increased significantly over the last few years, leading to the need for more staffing to deal with safety and volume issues. Minimum wage increases are also an issue the shelters will have to deal with in The current contracts with the Emergency Shelters end March 31, Report CSSS Emergency Shelter Funding, Homelessness Support Services Update and a 2019 Budget Pre-commitment, presented during budget deliberations, resulted in the following addition to the 2018 budget: * an addition of up to $200,000 to the budget for Brock Mission/Cameron House, YES Shelter and the Warming Room to help the shelters to cope with the increased volume and the need for additional staffing and to extend the Warming Room to operate for 12 months a year in the next two years. This will be funded from the Social Services Homelessness reserve for both 2018 and Additional funds have also been added to the rent supplement allocation. Council approved a request for an additional $25,000 for a Housing First rent supplement increase. The Homelessness Coordinated Response Team continues to try to find housing for as many homeless people as possible. Currently, the active caseload is 82 and an increase would further help homeless individuals and families to find housing. Of this amount, $5,000 is being funded from the County. Council also passed a motion for an additional $50,000 for rent supplements. This will be funded $10,000 from the County and the remaining $40,000 will come from Social Services reserves for 2018 and will need to be added to the base budget for

159 In September 2017, the Province approved the City's proposal for 100% provincial funds under the Home For Good (HFG) program. This funding is not included in this budget as presented. The approved funding is for three years as follows: a) $270,320 for April 2017-March 2018 b) $983,236 each year for April 2018-March 2019 and April 2019-March The HFG funding is for operational, not capital, purposes and can be used to assist families and individuals who fall into one or more of the Province's four priority areas of homelessness, including chronic homelessness, youth homelessness, indigenous peoples experiencing homelessness and homelessness following transitions from provincially funded institutions and service systems. Children s Services Licensed child care spaces continue to increase especially in the County, with programs opening in Millbrook and Lakefield. These changes have changed the cost share from 72% City, 28% County in 2017 to 69% City, 31% County in There are a few changes budgeted for in the Municipal Child Care program. To help offset the rise in costs, a 2.1% increase in parent fees has been included. The main contributor to cost increases has been the legislated requirement to increase staff to child ratios during the first 90 minutes and last 60 minutes of each day which began in September In 2017, two new children's services programs, funded 100% by the Province, were announced. The first was the five year expansion plan to create access to licensed child care for 100,000 more children ages 0-4 years across the province. The funds are to be used for additional fee subsidies, increased access and increasing affordability to child care. The City is estimating approximately $1.5 million in 2018 for this program. The second program is the Canada-Ontario Early Learning and Child Care (ELCC) Agreement, which supports children from 0-12 year of age. These funds are to be used for additional fee subsidy, increasing access and increasing affordability to child care. Some funds may also be used for non-profit communitybased capital projects. The City is estimating approximately $790,000 for this program in Ontario Early Years Child and Family Centres (OEYCFCs) As of January 1, 2018, the management of OEYCFCs will be moved to municipalities. The Province allocated approximately $1,237,000 of operational funding for Community Development Program The Healthy Kids Community Challenge is a program where partners from different sectors (e.g. public health, education, recreation, local business) work together to implement activities to promote healthy behaviours for children was to be the last year of the three year program, but it was extended by the Province to end September 2018 instead of the original end date of March Funds have been budgeted to cover the municipal

160 share of the staff position associated with this program in There is a newly formed Age Friendly Peterborough Advisory Committee that is supporting the implementation of the Age Friendly Peterborough Community Action Plan. The Committee will deliver on actions to make the community more age-friendly. Support to the Committee will be provided through the existing $22,000 seniors budget at this time. Council approved a request for a new full time permanent position to support the implementation of the Age-Friendly Plan, support the Committee and working groups as they address seniors issues. The Age-Friendly Coordinator position was in existence for the last three years, funded mainly through a Trillium Grant and in partnership with the Municipality of Trent Lakes, but ended in 2017 with the end of the grant. In 2017, a Community Well Being planning process began and will continue into This plan will recommend priorities related to the municipal role to improve the well being of individuals and the community across the City and County of Peterborough. $25,000 has been budgeted to fund community engagement, digital approaches and technology, data gathering and additional staff time for the development of the framework. This will be paid for through a draw from the CDP Reserve. The Homemakers program provides support to low-income seniors and others with housekeeping services to allow them to remain in their homes as long as possible. The budget is being increased by $50,000 in total; $40,000 for the City and $10,000 for the County. The Ministry of Health and Long-Term Care funds 80% of this program. Social Services Reserve With funding changes over the last few years mainly in discretionary benefits and housing and homelessness, the Social Services Reserve has been relied on to assist with the demand and transition of the changes, and community projects requiring support, as well as borrowing approximately $2.3 million to fund the office improvements (to be paid back over a period of nine years). The following shows the draws and the expected balance at the end of 2018: Estimated Balance beginning of the year $2,521,226 Municipal portion of ERP (OW Admin) ($26,715) Homelessness (CHPI) ($100,000) Housing Incentives ($100,000) Emergency Shelter Funding ($200,000) Increase to Rent Supplements ($40,000) Age-Friendly Coordinator ($51,342) Brock Mission (capital project) ($286,750) Expected Draws ($804,807) Estimated repayment of loan P&I $246,462 ($558,345) Projected Balance end of year $1,962,881

161 Overall Net City/County Share Overall the County s net share of the Social Services operating budget has decreased by $30,034 or 1.6% and the City s net share has decreased $494,904 or 6.9%. Recommendations That any unused Homelessness net budget at the end of 2018 be transferred to the General Assistance Reserve, to be used for future investment in homelessness prevention programs, subject to the overall year end position and that, if actual 2018 Homelessness costs exceed the 2018 Budget, funds may be drawn from the Reserve. That any unused Community Development Program net budget at the end of 2018 be transferred to the Social Services Community Social Plan Joint Reserve for future program development, subject to the overall year end position and that, if actual 2018 Community Development costs exceed the 2018 Budget, funds may be drawn from the Reserve. That any remaining unused Social Services net budget at the end of 2018 be transferred to the General Assistance Reserve, subject to the overall year end position and that, if actual 2018 Social Services costs exceed the 2018 Budget, funds may be drawn from the Reserve. 141

162 Social Services Division Capital Budget Brock Street Mission Revitalization and Supporting Housing The Housing and Homeless Plan was approved by Council November 12, Commitment 18 in the Plan outlined the need to improve the physical space and services for homeless men. A feasibility study was completed in 2015 outlining deficiencies that must be addressed, including the current building. In 2017, the program moved to a temporary location at St. Paul's Church and demolition will begin late 2017 or early In July 2017, Council approved Report PLHD Peterborough Housing Corporation Acquisition of Property at 217 Murray Street (Brock Street Mission), that included a plan that would have Brock transfer ownership of the property to PHC and have Brock, as the service provider, lease the shelter portion of the building out for operation of the program. PHC will oversee construction and will have ongoing facility management responsibilities. As part of that report, Council pre-committed the final capital contribution of $325,000 that is in the 2018 Budget. $38,250 of this will come from the County. 142

163 Planning and Development Services Departmental Summary - Operating Budget The Planning and Development Services Department includes the Planning Division, Geomatics/Mapping Division, Building Division, Housing Division, the Peterborough Municipal Airport and the development of the City s Industrial Parks. 143

164 Planning and Development Services Departmental Summary Capital Budget 144

165 145

166 Planning, Geomatics/Mapping Administration Operating Budget The Division administers all municipal planning activities including processing of subdivision plans, responding to enquiries on changes to Planning Policies and applications for development, administering the Committee of Adjustment work, monitoring and enforcing site plan compliance and advising City Council and other boards, commissions and departments on changes to the Official Plan, the comprehensive Zoning By-law and other planning documents. Also included in this activity is the management of the City s industrial parks. The Geomatics/Mapping (G/M) Division provides the leadership role within the Corporation for spatial data management, Geographic Information Systems (GIS) technology and mapping services. 146

167 Planning Capital Budget 147

168 Property Acquisitions For 2018, the property acquisitions project seeks to address property acquisition opportunities in the vicinity of the expanded Peterborough Airport. Acquisitions may include property to fulfill the long-term land needs of the Airport Master Plan and the acquisition of property or easements to protect the obstacle limitation surfaces associated with the expanded runways. Commencing in 2015, the project also included an annual $100,000 allocation to reflect the commitment made, through Report PLPD13-056, to establish a new reserve for the purchase of the Naval Association property. This will be required for approximately six more years. Central Area Master Plan (CAMP) Implementation Phase The Official Plan directs that the City pursue a comprehensive program of downtown enhancement. The 2018 Budget provides for the following: a) CAMP #10 - Annual maintenance and safety fund - $100,000 b) CAMP #17 - The priority functions of the Downtown include Major Office and Institutional Uses. This project will provide the third of three years of $100,000 seed funding to establish an Entrepreneur Centre in the downtown. 148

169 Central Area CIP Implementation One of the strategies of the Central Area Master Plan was to adopt a Community Improvement Plan (CIP) for the Central Area. In August 2011, the Central Area CIP was approved by Council (By-law , Report PLPD11-062) establishing a suite of financial incentives to assist property owners to rehabilitate and redevelop downtown properties. The purpose of the CIP is to ensure the long term economic, social and cultural vitality of the Central Area providing financial incentives to assist in the enhancement and revitalization of the downtown area. The 2018 request is for the following: - Faḉade Improvement - $100,000 - Municipal Incentive - $100,000 - Residential Conversion and Intensification - $1,300,

170 Natural Heritage Policy Update and Harper Park Watershed Management Plan At the Council meeting of September 25, 2017, through Report PLPD17-043, Council pre-committed funds of $225,000 for this project. A revamped Natural Heritage section of the Official Plan is a critical component of the Official Plan Update. Growth Areas Capital Budget Lily Lake Growth Area - Centralized Stormwater Management Facilities The first phases of subdivision development proceeded in the Lily Lake Growth Area in The 2018 budget allocates $600,000 towards the centralized stormwater management facilities necessary to support this development. 150

171 Jackson Area (Loggerhead Marsh) Centralized Stormwater Facilities This budget allocation represents the anticipated Development Charge contribution for the construction of centralized stormwater management facilities to support growth. Liftlock/Coldsprings Growth Areas - Planning Studies As development proceeds in these Growth Areas, it is anticipated that there will be the need for technical studies to support future growth and address issues related to new development projects. 151

172 Industrial Parks Capital Budget Trent Research and Innovation Park - Phase 1 Trent University has reserved approximately 85 acres along the north side of Pioneer Road for the establishment of a sciencebased research park. Building upon the success of the DNA Cluster initiative, the new Trent Research and Innovation Park (TRIP) is poised to become a major focus of employment growth in the city of Peterborough. This development is to Science and Technology employment as Major Bennett Industrial Park is to Manufacturing and Transportation employment. The development of the Trent Research and Innovation Park will require ongoing municipal investment to ensure that adequate municipal services are in place to support future employment growth. There are two distinct components to the project. An external services program which is being handled by USD under Capital Budget reference # The second component is an internal site servicing program to ensure a supply of serviced building lots as demand warrants. Investors will construct buildings on land secured by a long-term ground lease. Internal site servicing costs will be recovered 152

173 over time through ground lease payments. An initial phase budget of approximately $3.0 million was secured in prior years for this purpose. The 2018 Budget is for an additional $2.4 million to support internal servicing, lot grading and common elements within the research park. It is expected that the first tenants will commence building construction in the summer of Trent Research and Innovation Park Business Plan Implementation The City has made significant investments in serviced industrial land, the Airport and the Trent Research and Technology Park. Having established an inventory of economic development assets, this project is targeted at establishing the organizational model and business strategy to make it as successful as possible. For 2018, the budget of $50,000 is over and above the core funding to Peterborough and the Kawarthas Economic Development (PED) as it represents an activity that PED will be actively engaged in, but not directly responsible for. This is proposed to support the initial marketing of the Park and would continue in In it is suggested this amount be reduced to $25,000. The remaining $50,000 for 2018 will cover 50% of a.75 FTE for an Executive Director at TRIP. For 2019 and beyond this will be a full FTE equal to $150,000. While it will reside with the City, the position will fulfil the interests of the University as well. It is therefore, expected that 50% of these funds will be recovered from the University. 153

174 Geomatics/Mapping Capital Budget ESRI Stabilization Project ESRI is the City s geographic information systems (GIS) software product. With it, the City produces all of its maps and corresponding spatial data used in decision making and reporting across the Corporation. This project contains a number of initiatives to upgrade and stabilize and advance the product forward, as it will be the key software tool for migration to an Open Data environment to provide easy and free access by the public to the City s GIS data sets. 154

175 Corporate GIS Development Tool There are several initiatives planned for development of the GIS environment including: Orthophotography - the creation of digital air photos that are compatible with the City's GIS; Lidar - will provide accurate elevations (heights) of buildings and forestry canopy and additional GIS Technologist work to ensure stability of the GIS while these new applications are implemented. 155

176 Housing Division - Operating Budget 156

177 The Division s annual work program has four main elements: Social Housing Portfolio and Rent Supplement Programs, Affordable Housing Stock, Housing Policy Development, and Housing Support Programs. The City of Peterborough is the provincially designated Service Manager for a portfolio of approximately 2,000 social housing units in the City and County, managed by 18 non-profit providers and Peterborough Housing Corporation (PHC) for which the City is the sole shareholder. The City funds and administers housing programs for the City and County. Senior government funding is used to construct affordable rental housing, and assist low-income households through loans and grants. Of the 2,000 social housing units, about 80% are rent-gearedto-income and 20% are market rent units. As of September 2017, 1,543 households were on the waiting list for rentgeared-to-income housing. The majority of the Housing Division s budget is used to pay for housing subsidies which are prescribed by provincially legislated formulas. The consolidated service agreement uses the previous year s weighted current value assessment to calculate the City-County proportionate housing share. In 2018, the County s share is the same as in %. The Division has service contracts with the Housing Resource Centre (HRC is operated by Community Counseling and Resource Centre) and Housing Access Peterborough (HAP is delivered by Peterborough Housing Corporation). The Division supports the committee work of the Affordable Housing Action Committee (AHAC), their annual publication (Housing is Fundamental) and periodic research projects. The 2018 Operating Budget reflects an additional municipal investment in City spending of $262,920 in various programs of Rent Supplement to maintain the level of service provided to the community. The additional investment is primarily attributable to the loss of subsidy from the Province in the Investment in Affordable Housing program. 157

178 Recommendations That any surplus in the 2018 Housing Operating Budget at the end of 2018 be transferred to the Housing Reserve, subject to the overall year end position and that, if actual 2018 Housing costs exceed the 2018 Budget, funds may be drawn from the Housing Reserve. That any surplus in the 2018 Housing Choice Rent Supplement Program at the end of 2018 be transferred to the Housing Choice Rent Supplement Reserve, subject to the overall year-end position and that, if actual 2018 Rent Supplement costs exceed the 2018 Budget, funds may be drawn from the Rent Supplement Reserve. 158

179 Housing Division Capital Budget Incentives for Affordable Housing The City provides support in various forms such as development charge rebates, municipal tax savings, land contributions and building fee discounts for developers. The City has been making annual investments since An example currently in progress is support for the McRae Project at Bonaccord Street in the amount of $701,

180 Emergency Capital Repairs The $125,000 per year is to be utilized to assist social housing providers with necessary capital repairs and upgrades that are considered a priority, and beyond the ability of the housing provider to fund by themselves. This funding, when expended, will be paired with available incentives, funding from federal and provincial levels of government, or as cost sharing opportunities whenever possible. These projects can be prioritized based on the up to date Building Condition Assessment Study. This capital reserve will be funded from City and County contributions based on the weighted assessment sharing ratios and allowed to accumulate until required. 160

181 Airport Division - Operating Budget The Peterborough Airport is a very active industrial park, containing 23 businesses that employ over 400 full-time employees, plus seasonal workers. In addition, Seneca College School of Aviation and Flight Technology program commenced operation in January 2014, bringing 200 students and 50 faculty to the Airport daily. Aircraft movements are approximately 60,000 per year. 161

182 Loomex Property Management has completed the fifth year of the Airport Management and Operations Contract which has six years remaining (November 30, 2023), following a three year extension in The Contract guarantees firm pricing and includes supplying, maintaining and replacing equipment within the contract amount. This ensures predictability in operating expenses for the next six years. The 2018 Operating Budget reflects additional day-to-day costs for part-time salaries to help with administration duties, utility costs, and contractual services as per the Airport Management and Operations contract. Recommendation That any excess Airport development review fees at the end of 2018 be transferred to the Airport Development Review Reserve for future Airport Development related expenditures and that, if the 2018 Airport development review costs exceed the review fees, funds may be drawn from the Airport Development Review Reserve. Revenue projections for 2018 have been adjusted to reflect additional fees for land leases, landing fees and parking. Excess development review fees are transferred to a reserve to be used for future airport development related expenditures. An annual contribution to the Airport Development Debt Servicing Reserve of $1.2 million is necessary to fund the City s share of the ISF Airport Expansion Capital Project. The dedicated Pavement Reserve of $50,000 to maintain the asphalt surfaces will continue. Quality assurance audits are required by Transport Canada's regulated Safety Management System continues with an annual contribution of $10,000 for an external quality assurance audit to be completed every 3 to 4 years. Boeing at Peterborough Airport 162

183 Airport Division Capital Budget 163

184 Airport Water and Sewer Servicing Upgrade In 2002, servicing was extended to the Airport to support business growth. The water usage dictated the size of service installed and at the time was oversized with mitigation methods applied to maintain safe levels of water chlorination. The sewer pumps were also installed based on the requirements with additional capacity for the future. In 2010, the Airport underwent a $28.6 million expansion which lead to an increase in the number of people on site, from 150 in 2002, to over 570 in The increase can be attributed to business expansion and the addition of the Seneca College School of Aviation. Several new facilities are in the planning stage with construction of one proposed to take place in The new facilities will produce a significant increase in the number of people on site requiring a water and sewer upgrade. Environmental Remediation In March of 2015, the Ministry of the Environment and Climate Change (MOECC) advised the City that the Ministry s Environmental Monitoring and Reporting Branch had completed a surface water and sediment sampling survey on and around the Peterborough Airport. The study identified some elevated levels of PCB s in certain sampling sites. It is assumed the elevated levels are related to historical landfill activities on the airport property. The areas of concern have been delineated laterally and vertically. Cambium Inc. has provided the results to MOECC for their review. A risk assessment was completed in 2017 to identify solutions and waste management measures on site. This Capital Project will be used to complete the required steps for maintaining the affected soils on site. General Aviation Expansion In response to market demand, an extension of the General Aviation Area was commenced in 2017 on the east side of Apron III, opening up three new lots for aircraft hangars which included drainage, internal road construction, services installation, fencing and lot fill. This project will continue with a capital budget allocation in 2018 and 2019 to complete construction of the new area. 164

185 Obstacle Limitation Surface Tree Cutting There are properties with numerous trees nearing the protected surface which will require extensive tree cutting. These trees are located on City owned land on the south side of the Airport, and on properties covered by obstacle protection easements and agreements surrounding the runways. 165

186 Building Inspection and Protective Services Division Operating Budget The Building Division is responsible for ensuring compliance with the Ontario Building Code (OBC) and various City by-laws. Services include the administration, enforcement, education and dispersal of information to the public regarding the Building Code, Zoning, Minimum Property Standards, Development Charges, Parks Levy, Signs and Fences. Total building activity for 2017 was higher than expected. Economists suggest ongoing growth in 2018, yet a predicted shortage in the inventory of residential building lots may actually lower building activity in the residential sector on a temporary basis. The 2018 budget includes an inflationary adjustment to the permit fee schedule to ensure that revenues keep pace with inflationary costs resulting in 2018 Building Permit revenues of approximately $1.5 million. Recommendation That any unused Building Inspection Budget at the end of 2018 be transferred to the Building Division Reserve and that, if actual building inspection costs exceed the 2018 Budget, funds may be drawn from the Building Division Reserve. 166

187 Building Division Capital Budget Development Client Service Enhancement Project A project to enhance the client experience encountered in the City of Peterborough by improving the development approvals process overall, with special attention paid to approval transparency, application tracking, technical information support, and improved lines of communication between departments and external agencies and customer service. This project will focus on the approvals process that is comprised of Landuse Planning Applications, review of these applications and independent approvals provided by Utility Services and the applications made for Building Permits. 167

188 Financial Services Other Financial Summary Operating Budget The Capital Financing Costs and other financial section sets out a number of corporate-type expenses that are not attributable to any particular Department, but which, for the most part, are administered by the Corporate Services Department. 168

189 Capital Financing Costs 169

190 Tax Supported Debt Charges The $11.8 million Tax Supported Debt Charges represents principal and interest to be paid on tax supported debt that has been issued, or that may be issued during 2018 from current or previous years approval. Tax Supported Debt Charges exclude debt service payments recoverable from other non-tax sources such as Development Charges, Court House lease payments, Arena user fees and the Waste Water Reserve Fund. Tax Supported Debt Charges are up 10.3% over 2017 as a result of the Capital Financing Plan approved by Council on April 23, 2012 based on Report CPFS12-011, presented to the Budget Committee on April 4, Given the relatively low cost of borrowing in the marketplace and the need to move forward with badly needed capital works, the increase represents the full 0.5% or $790,912 of additional capital financing approved by Council through the 2018 Budget Guideline Report CPFS17-037, rather than a portion of the 0.5% being used to increase capital levy. The $312,500 representing the balance of the increase is the replenishment of the tax supported debt provision for the user fee debt servicing costs that were apportioned in 2017 to the Parking activity. Capital Levy The $9.4 million Capital Levy provision represents the amount of money raised in the 2018 Operating Budget to directly finance the 2018 Capital projects. Additional details are provided in the 2018 Capital Financing Supplementary Information section of the Highlights Book. Transfers to Reserves and Reserve Funds A $1.8 million portion of the 2018 regular Capital Levy is being transferred to the Capital Levy Supported FRMP Reserve to fund specific Flood Reduction Master Plan Capital projects as identified in the 2018 Capital Budget. A $2.5 million portion of the 2018 Sewer Surcharge collected will be transferred to the sewer surcharge supported FRMP Reserve to fund specific sewer related Flood Reduction Master Plan Capital projects as identified in the 2018 Capital Budget. The Casino is expected to be operational in the later part of The 2018 budget includes an amount of $1.5 million from Casino revenues which will be transferred to a Casino Gaming Reserve. Funds from the reserve will be used to fund capital projects, and an amount of $150,000 to be paid to the DBIA. Recommendation That a Casino Gaming Reserve be created and all Casino gaming revenues be transferred into the reserve, and that except for the provision in 2018 of $150,000 to fund expenditures of the DBIA, this reserve only be used for designated capital projects. 170

191 Property Taxation Costs ($3.1 million) 171

192 Tax Credit for Low Income Seniors and People with Disabilities Through three separate programs, this activity provides $152,700 ( $127,700) in funding to protect lowincome seniors and low-income people with disabilities from tax increases. The program was amended in 2017 through Report CPFS and is now based on a $400 flat rate. Any homeowner who was receiving a higher amount under the previous program was grandfathered at the higher amount. Rebates to Registered Charities Subject to overall year-end position, any surplus or deficit budget at the end of the year is netted to a reserve for tax write-offs, which had an unallocated balance for municipal taxes of $150,000 as of December 31, Municipal Property Assessment Corporation The $949,300 provision for the Municipal Property Assessment Corporation (MPAC) reflects a 1.0% increase over 2017 actual amounts billed by MPAC. MPAC is responsible for assessing all property in Ontario and operates under the authority of the Municipal Property Assessment Corporation Act. The 2018 Budget provides $350,000 to provide a tax rebate to registered charities that either own or lease properties in the Commercial class. An Ontario municipality must provide a rebate of at least 40%. The City of Peterborough provides a rebate equal to the lesser of 100% of taxes payable by the charities or $50,000. Tax Remissions A General Tax write-off provision in the amount of $1.1 million and $0.1 million City owned properties provides for $1.2 million of municipal tax loss due to assessment appeals and tax reductions and cancellations that may occur under various sections of the Municipal Act, During 2017, through Report CPFS17-023, the Vacancy Rebate program was eliminated with the funds being redirected to the Commercial Property Class of the Tax Ratio Reduction Program. 172

193 Central Area Community Improvement Plans (CIP) The purpose of the Central Area CIP is to provide financial incentives to stimulate private sector investment and revitalization of the Central Area. The CIP contains grant programs meant to help improve the appearance and the structure of commercial buildings, encourage the conversion of upper floor space for residential use, and stimulate the environmental clean-up and redevelopment of older, abandoned industrial and commercial sites that may be contaminated. Recommendation That any adjustment to the City s 2018 requirement for the Municipal Property Assessment Corporation (MPAC), be netted against the City s 2018 General Contingency provision. The 2018 Budget provision of $398,000 includes the following incentives: Brownfields Tax Assistance Program $160,400 Brownfields Rehabilitation Grant Program $124,600 Central Area Revitalization Grant $113,000 Total $398,

194 Other Expenditures 174

195 Employee Benefit Costs An annual amount of $40,000 is contributed to the Sick Leave Reserve to pay for vested sick leave benefits; however, there are additional unfunded post-employment benefits such as retirement benefits, life insurance, worker s compensation and vacation pay entitlements. While there is no legislation requiring the City to fund these liabilities, the City has established an Employee Benefits Reserve to begin to address the issue. The balance in the Reserve is $1.9 million. Insurance and Risk Management The $643,349 insurance provision includes $365,000 for estimated deductible payments; $224,349 for premium payments for corporate coverage and $54,000 for broker fees. Any surplus or deficit budget at the end of the year is netted to an Insurance Reserve, which has a current uncommitted balance of $1.2 million. 200 Jameson Drive Lease Agreement The City signed a 25-year lease starting January 1, 2001 to lease an 85,000 square foot building at 200 Jameson Drive. The City, in turn, sub-leased the building to AmeriCredit for a guaranteed ten-year term. Through Report OCS dated February 22, 2010, the City extended the AmeriCredit lease to July 31, 2019 at a base rate of $10.54 per square foot (psf). As the annual payment to the owner of 200 Jameson Drive is $13.47 psf, the City is responsible for the difference, which equates to an annual payment of $261,956. Contribution to Doctors Recruitment Incentive Reserve The current balance in reserve fund is approximately $75,250. A provision of $100,000 is included in the budget to fulfill future expected commitments. Contingency Provision The $.9 million contingency provision is included for legal, personnel and other contingency items. The Draft Budget included a provision of $340,000 for impacts related to The Fair Workplaces, Better Jobs Act. For presentation in the final Budget approximately $251,000 of the $340,000 has been distributed to Departmental Budgets where the actual charges will be incurred. At the end of each year, if there is an unused portion of the contingency budget, subject to overall year end position, the surplus budget is transferred to the capital levy reserve to be used to help fund the capital works program in the following year 175

196 Recommendations That any unused portion of the 2018 tax write off account balance that may exist at year-end be transferred to the Allowance for Doubtful Accounts Reserve, subject to overall year end position and that, if actual 2018 tax write-off costs exceed the 2018 Budget, funds may be drawn from the Allowance for Doubtful Accounts Reserve. That any unused Employee Benefits Budget at the end of 2018 be transferred to the Employee Benefits Reserve, subject to the overall year-end position, and that, if actual 2018 employee benefits exceed the 2018 Budget, funds may be drawn from the Employee Benefits Reserve. That any unused Insurance Budget at the end of 2018 be transferred to the Insurance Reserve, subject to the overall year-end position and that, if actual 2018 insurance costs exceed the 2018 Budget, funds may be drawn from the Insurance Reserve. That any unused 2018 Contingency Budget at the end of 2018 be transferred to the Capital Levy Reserve to be used for Capital works subject to the overall 2018 year-end position. 176

197 Transfers To Organizations For Provision Of Services Summary Operating Budget 177

198 Peterborough Police Services - Operating Budget 178

199 In accordance with the Police Services Act, the Peterborough Police Service has a separate budget process, which includes submission to, and approval by, the Police Services Board. In accordance with Section 39. (1) of the Police Services Act: 39. (1) The board shall submit operating and capital estimates to the municipal council that will show, separately, the amounts that will be required, (a) (b) to maintain the police force and provide it with equipment and facilities; and to pay the expenses of the board s operation other than the remuneration of board members Subsections 3 and 4 of Section 39 stipulate that: 39. (3) Upon reviewing the estimates, the council shall establish an overall budget for the board for the purposes described in clauses (1) (a) and (b) and, in doing so, the council is not bound to adopt the estimates submitted by the board. (4) In establishing an overall budget for the board, the council does not have the authority to approve or disapprove specific items in the estimates. The Police Board expenses of $359,505, does not include remuneration for members of the Police Services Board. Key highlights of the 2018 Budget include: 1 new permanent full-time Evidence Clerk position (April 1 start) and additional part-time Data Entry Clerk. An increase in the Court Security and Prisoner Transportation Program grant from the Province in the amount of $148,519 to $1,039,634 ( $891,115). 179

200 2018 Guideline for Police Services The 2018 Guideline Report included recommendation (e) which read as follows: That the increase in the Police Services portion of the draft 2018 Operating Budget reflect no more than the Operating portion of Net Tax Levy increase (estimated to be 1.7%), and any increase in the net Police Services budget beyond the estimated Operating Portion of the Net Tax Levy increase be addressed by Council as part of the detailed 2018 Budget deliberations to occur in November of When the budget was compiled and the internal staff reviews complete, the outcome of the 2018 Operating portion of the Net Tax Levy increase is 2.3%. The PSB ask is an increase of 2.2% or $544,847. As a result, the full ask of the PSB has been incorporated into the 2018 Budget being presented to Council. Recommendations That any unused Police Services Legal fees Budget at the end of 2018 be transferred to the Legal Fees Policing Reserve, subject to the overall year-end position and approval through the Treasurer, and that if the actual 2018 Police legal fees costs exceed the 2018 Budget, funds may be drawn from the Policing Legal Fees Reserve. That any unused Police Services Budget at the end of 2018 be transferred to the Police Special Projects Reserve, subject to the overall year-end position and approval by City Council and that, if the actual 2018 Police Services costs exceed the 2018 Budget, funds may be drawn from the Police Special Projects Reserve. 180

201 Peterborough Police Services Capital Budget Various Police Capital Projects The Police Capital Budget includes $318,300 for vehicle replacement, $232,123 for various IT improvements, and $66,977 for various other equipment. 181

202 Police Services Business Plan The Business Plan is mandated by Section 30 of the Adequacy and Effectiveness Regulation (O.Reg. 3/99) of the Police Services Act. The Board must prepare a new Business Plan every three years. The business plan assists the Chief of Police as well as the Board in identifying levels of satisfaction, areas of concern and the future expectations of the public in the Policed communities. The process is fundamental in thinking about the staffing, resources, and organizational arrangements needed to meet present and future demands of the Police Service. Funds in 2018 will be used for the following initiatives: - Adequacy and Effectiveness Review - $25,000 - Facility and Space Needs Assessment - $50,000. Funds in 2019 will be used for the following initiatives: - Adequacy and Effectiveness Review - $25,000 - Police Business Plan $75,

203 Fairhaven 183

204 The following chart provides the split between debt servicing costs and Operating Support. Debt Servicing - $679,074 On December 13, 1999, Council agreed to provide longterm funding support for the Fairhaven Home Rebuild project and resolved. that the Peterborough City Council include in its capital budget for the next 20 years up to $700,000 per year, subject to the confirmation of final cost through a competitive tender process, to be put toward the capital cost of rebuilding Fairhaven Home. At the time, the $700,000 annual amount was to be a maximum amount that, when combined with the County s $350,000 annual contribution, and the contribution from the Province through a $10.35 per bed-per day subsidy, would be used by the Home to meet annual mortgage payments. The mortgage of $24.5 million was amortized over twentyyears and taken out by the Home when construction was complete. Under the terms of the Ministry of Health s funding formula for such Category D rebuild projects, the provincial contribution of 50% of the cost of the facility is to be paid over 20 years as a $10.35 per bed-per day subsidy. This provincial subsidy amounts to $956,000 annually and is allocated toward the debt repayment. The balance of the debt repayment is paid for through operating revenues, operating surpluses (reserve transition fund), and the City/County financing commitment. The City s commitment expires in

205 Operating Support - $1,116,667 Fairhaven continues to face numerous budgetary pressures in 2018, however, not at the level that was anticipated. The Committee of Management, in forecasting cash flow needs is expected to submit a municipal funding request of $1,675,000, with the City s portion of the ask being $1,116,667 ( $1,066,700) and the County s at $558,333 ( $533,300) a $75,000 or 4.7% increase over Fairhaven Capital Funding - $204,000 As part of report CPFS dated September 4, 2012, Council resolved that beginning with the 2013 Capital Budget, an annual provision would be included in the Draft Capital Budget to support Fairhaven s on-going capital program. The provision for 2018 is $204,000. The full amount of $1,116,667 has been included in the Budget. 185

206 Peterborough County/City Paramedics Service (PCCP) The County of Peterborough is the delivery agent for both the City and the County. PCCP provides care, treatment, and transportation to the residents and visitors of Peterborough County, City, and surrounding areas. The fundamental mission of the Peterborough County/City Paramedics is: To be available on a 24 hour basis to respond with optimum speed and efficiency to all emergencies; To provide emergency patient care to the public we serve. Emergency patient care includes the stabilization, treatment and transportation of the acute and critically injured; The transport of patients between health care facilities or to or from residences for admission, discharge and/or treatment. 186

207 The City s portion of the PCCP expenses for 2018 has been budgeted at $4.76 million or a 1.2% increase over the 2017 Budget. The cost share between the City and the County is based on population as per the 2016 census. The City s share is 58.62% ( %). The 2018 budgeted amount is based on preliminary estimates only. A final budget is expected early in County staff attended the Budget Committee meeting to answer questions. Recommendations That any adjustments to the City s portion of the 2018 Peterborough County/City Paramedics Services Budget be netted against the 2018 General Contingency Provision. That any unused Peterborough County/City Paramedics Services (PCCP) Budget at the end of 2018 be transferred to the PCCP Reserve, subject to the overall year-end position and that, if the actual 2018 PCCP costs exceed the 2018 Budget, funds may be drawn from the PCCP Reserve. 187

208 Otonabee Region Conservation Authority (ORCA) ORCA is a community-based environmental agency that protects, restores and manages the natural resources within the Otonabee Region watershed. Otonabee Conservation works with its eight member municipalities to create a healthy, environmentally diverse watershed that improves the quality of life for residents, makes our area more appealing to visitors and new business, and helps to ensure a more vibrant regional economy. 188

209 The budget is an estimate as the ORCA board has not yet approved the 2018 Budget. It is anticipated that the Base Levy will increase in the range of 2%-3%. The estimate of the $752,946 amount is made up of the following items: Recommendation That any adjustments to the City s portion of ORCA s 2018 Budget, based on the final approved ORCA Budget, be netted against the City s 2018 general contingency provision. Base Levy - $715,998 Source Water Protection - $18,500 City s portion of Special Capital Levy Millbrook Dam - $18,

210 Peterborough Public Health Operating Budget Peterborough Public Health (PPH) serves residents throughout the City and County of Peterborough and offers a wide range of programs and services ranging from healthy eating workshops, poverty reduction initiatives, and oral health clinics to controlling infectious disease outbreaks, water safety and sexual health clinic services. The Ministry of Health (MOH) funds 75% of the budget. The local share, after deducting the 75% MOH contribution, is allocated to the City, County, Curve Lake First Nation and Hiawatha First Nation based on population. The City s 2018 budgeted contribution is $1,205,956, the same as the prior two budget years. The budget is an estimate only, as the PPH board has not yet approved a 2018 budget. Recommendation That any adjustments to the City s portion of Peterborough Public Health s 2018 Budget, based on the final approved Peterborough Public Health Budget, be netted against the City s 2018 general contingency provision. 190

211 Peterborough & the Kawarthas Economic Development Peterborough & the Kawarthas Economic Development is the regional economic development organization contracted to provide a variety of economic development services for the City and County of Peterborough. 191

212 For the term of the current agreement dated December 7, 2015 (Report CAO15-024), the City and the County have agreed to provide funding to GPAEDC to undertake Core Economic Development activities that are at least equal to the approved 2016 budget and subject to the annual National Consumer Price Index for the previous year. For the purposes of the 2018 Budget, CPI is assumed to be 1.7%. The agreement specifies that the annual net costs shall be allocated to the City and County in proportion to their permanent population, as established by official census statistics. The City s share is 58.62% ( %). Overall, the requested municipal share of expenses that represents core funding has increased 1.7% and is in keeping with the Budget Guidelines as established by City Council. However, for 2018 the funding split between the City and County has been updated to reflect the 2016 population census. As such, the City s share of core funding in 2018 increases 2.2% or $21,106 from $949,364 to $970,470. Through Report CPFSJSSC17-001dated October 26, 2017, the Joint Services Steering Committee endorsed the draft 2018 GPAEDC Budget and recommended it to City and County Council for consideration during their respective 2018 Budget discussions. 192

213 Peterborough Humane Society Through Reports OCS dated July 28, 2014 and OCS16-002, dated May 30, 2016, the City and Peterborough Humane Society (PHS) entered into agreement for the provision of services to December 31, 2021 at the same annual cost. PHS provides animal control services including enforcement of the City's animal control by-law and provincial legislation. In addition PHS operates the City's Pound and issues dog and cat licenses. In addition to providing services to the City, the PHS is an affiliate member of the Ontario Society for the Prevention of Cruelty of Animals ( OSPCA ), mandated to prevent cruelty to animals, including domestic, livestock/farm, working animals, zoos and wildlife. The PHS advocates responsible pet ownership through education, in addition to operating a shelter and fundraising activities. This role is separate and apart from that of the PHS s contractual arrangements with the City but it allows the City to benefit from the expertise and training of the OSPCA officers who enforce our by-laws and the highest standards of animal care that are set out in the OSPCA Act. The City pays an all inclusive price for the services and the property taxes at the PHS s facility and PHS retains Pound fees; destruction and disposal fees; dog and cat license fees and 50% of fine revenue collected. Based on Report OCS16-002, dated May 30, 2016, the Draft 2018 Budget includes $0.2 million (Budget reference ) as the City s second year commitment to the relocation project with a total of $1.5 million towards the construction costs in total over the five year period 2017 to

214 194

215 Peterborough Family Health Team Peterborough Family Health Team (previously Primary Health Care Services of Peterborough) is a non-profit organization that was created in 2005 to with a mission to increase access to primary care through recruitment and retention of new health providers and to meet community health needs. There are now over 80 physicians and over 50 allied health professionals (nurse practitioners, mental health clinicians, registered dieticians, pharmacists, occupational therapists and registered nurses) in the Family Health Team. CITY OF PETERBOROUGH 2018 Operating Budget Description 2017 Approved 2017 Preliminary Actual 2018 Recommended Variances Over (Under) Over (Under) 2017 Budget % 2017 Budget $ Peterborough Family Health Team 20,412 20,412 20, % 454 Expenditures Other Transfers NET REQUIREMENT 20,412 20,412 20, % ,412 20,412 20, %

216 Annual net costs are allocated to the City and County in proportion to their permanent population, as established by official census statistics. This City s share is 58.62% ( %). Overall, the requested municipal share of expenses that represents core funding has increased 1.7% and is in keeping with the Budget Guidelines as established by City Council. However, for 2018 the funding split between the City and County has been updated to reflect the 2016 population census. As such, the City s share of core funding in 2018 increases 2.2% or $454 from $20,412 to $20,

217 Business Improvement Areas The City has two Business Improvement Areas: The Peterborough Downtown Business Improvement Area and the Village Business Improvement Area. Both were created for the improvement, beautification and maintenance of municipally-owned land, buildings and structures in the area beyond that provided at the expense of the City, and for the promotion of the area as a business and shopping area. Section 205 of the Municipal Act, 2001 states the following regarding budgets submitted by Business Improvement Areas: (1) A board of management shall prepare a proposed budget for each fiscal year by the date and in the form required by the municipality and shall hold one or more meetings of the members of the improvement area for discussion of the proposed budget. (2) A board of management shall submit the budget to council by the date and in the form required by the municipality and the municipality may approve it in whole or in part but may not add expenditures to it. There is no net impact to the City in approving the budgets submitted on behalf of the BIAs as the amounts levied are raised annually by a special charge upon the rateable properties in each of the business areas. Through Report CAO dated September 5, 2017, Council adopted By-law being a by-law to implement and update local policies to guide the operation and conduct of existing and new business improvement areas for the benefit of their members and the residents of Peterborough. 197

218 Peterborough Downtown Business Improvement Area (DBIA) The Peterborough DBIA was designated by the City in The boundaries are north to Murray Street, west to Bethune Street, south to Dalhousie Street, east to the Hunter Street Bridge. The DBIA represents over 400 businesses in the Downtown core. The budget submitted by the DBIA reflects a 2% increase to members. This budget was approved by the Board at their meeting held on June 28, 2017 and ratified by members at their Annual General Meeting on October 25, The increase was not approved by Council. Budget Levy $304,700 $304,700 Recommendation That the 2018 Budget request, representing the levy required by the Downtown Business Improvement Area of the Corporation of the City of Peterborough during the year 2018 totalling $304,700, be approved. City Contributions to the DBIA In addition to collecting the levy from members of the DBIA, the City s 2018 Operating Budget includes two additional amounts that support the activities of the DBIA. The following chart summarizes where these may be found in the Highlights Budget book: Department/ Division Budget USD/Public Works Other Expenditures Page Ref. Description Street Cleaning $96,400 $96, DBIA Inkind $27,500 $27,500 Services Total $123,900 $123,900 The In-kind Services Budget is used to support events by helping to pay for road closures, paid-duty policing and park rentals. On February 13, 2017, in consideration of Report OCS OMB Appeal 1400 Crawford Drive, Council committed to make an additional financial contribution towards the DBIA in the amount of $150,000 for a term of 20 years. The amount has been offset by Casino Gaming Revenues for a Net Tax impact on the Operating Budget of nil. 198

219 The Village Business Improvement Area (VBIA) The VBIA has submitted a budget for 2018 in the amount of $17,380 as follows. Recommendation Budget Operating $11,380 $11,380 Capital $5,000 $6,000 Total $16,380 $17,380 That the 2018 budget request, representing all sums required by The Village Business Improvement Area of the Corporation of the City of Peterborough during the year 2018 totalling $17,380, be approved. 199

220 Corporate Revenues Summary 200

221 Supplementary Tax Revenues For 2018, Supplementary Tax Revenues have been increased by $200,000 in recognition of the Casino facility being built. It is anticipated that the Casino will be operational during Penalties and Interest on Taxes Property tax arrears as of December 31, 2016 were 3.3%, down from 4.1% as of December 31, The trend seems to be continuing in While this is positive for the community, it does result in an estimated decrease in penalties and interest on taxes of $150,000, from $850,000 in 2017 to $700,000 in Investment Revenue The 2018 Budget is $2.3 million, a $234,000 increase over 2017 and is based on average investment balances of $130.0 million and an average investment return of 1.80%. Payments in Lieu The 2018 payment in lieu estimates of $3.3 million reflect an overall decrease from 2017 levels and is mostly the result of realigning budgets to reflect previous year actual amounts received. Casino Gaming Revenues The Casino is expected to be operational in the later part of The 2018 budget includes an amount of $1.5 million from Casino revenues which will be transferred to a Casino Gaming Reserve. Funds from the reserve will be used to fund capital projects, and an amount of $150,000 to be paid to the DBIA. Utilities Group of Companies Revenues The $5.67 million represents the dividend payments expected from the Peterborough Utilities Group of Companies. It is expected that the overall return on investment will continue to increase approximately 2% per annum. Although the 2018 dividend revenues from CoPHI, are assumed to be $5.67 million, the potential divestment of PDI could have a financial implication should a transaction occur in 2018, including future expected dividend revenues. That matter will be the subject of a future report. 201

222 2017 Surplus Carried Forward as 2018 Revenue The 2018 Budget has been prepared assuming a surplus from 2017 operations of $100,000. Recommendation That any net surplus funds, after the disposition of the recommendations in this report, from 2018 operations in excess of $100,000 be transferred to the Capital Levy Reserve to be used for Capital works. 202

223 Sewer Surcharge Operating and Capital expenditures funded from Sewer Surcharge All of the Environmental Protection operating expenses, except for Storm Water Collection and the Little Lake Fountain, plus Public Works Sanitary Sewer maintenance costs, are funded through Sewer Surcharge Revenues. All of the Environmental Protection Capital works, plus Sanitary Sewer Related Capital works, are funded either through contributions from the Waste Water Reserve Fund or through Development Charges. On February 13, 2017, in consideration of Report USEC Water Resource Protection, Council resolved the following: d) That, related to an increased need to maintain the City's sanitary sewer system: i) Council recognize the need to, over time, increase the annual sanitary sewer funding by an additional $3.5 million, subject to annual budget discussions; and Based upon the above resolutions of Council, staff have included an amount of 0.26% in the all-inclusive rate to accommodate an 2.1% increase in the Sewer Surcharge rate from 95% of the Water Rate to 97.1%: $16.3 million Sewer Surcharge to be raised The 97.1% Sewer Surcharge Rate, coupled with increased water rates and some growth, means the City will raise $16.3 million in sewer surcharge revenues in 2018 ( $15.5 million). The amount of sewer surcharge that can be transferred into the Waste Water Reserve Fund to finance Capital works will be $5.2 million. Average Sewer Surcharge payable increases by $22.90 (5.3%) When the estimated 3.0% water rate increase for 2018 is considered along with the 97.1% sewer surcharge rate, the average house will experience a $22.90 or 5.3% increase in their sewer surcharge annual amount payable over the 2017 level. The rates and levies are summarized in the following Chart. ii) In the first year, being 2018, an additional amount up to $350,000 be included in the "All Inclusive" budget, subject to budget discussions and final budget approval. 203

224 Comparative Sewer Surcharge Rates and Levies For the years 2017 and

225 Sewer Surcharge Funded Operating Expenditures 205

226 Other Fees and Service Charges Summary User fees shown here are reflected throughout Departmental Budgets and reduce net tax levy requirements. 206

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232 Part Property Taxation Budget Highlights Part 3: 2018 Property Taxation 212

233 Part Property Taxation Taxation Revenue Summary The amount of taxation revenue, included in the 2018 Budget, to fund the net expenditures from all City activities, less corporate revenues, is $127.4 million. The following charts show the tax levy by class of property and what a residential taxpayer would pay for various municipal services based on a property assessed at $243,

234 Part Property Taxation What a Residential Taxpayer Pays 214

235 Part Property Taxation Tax Policy Tax Ratios and Tax Rates Council, at its April 14, 2009 meeting, adopted an eight year tax ratio reduction plan, through Report CPFPRS (Tax Policy), whereby the Multi-residential, Commercial, and Industrial tax ratios would be reduced by a set amount in each of the years 2010 through 2017 so that by 2017, the tax ratio for all three classes would be 1.5. However, the 2015 and 2016 Budgets deferred the plan, as directed by Council through the respective Budget Guidelines Reports. On July 31, 2017, Council approved Report CPFS17-033, 2018 Budget Guidelines which included the following recommendation: That the revised Tax Ratio Reduction Program continues for the 2018 Draft Budget and reflects reductions: i) To the Commercial and Industrial Class Tax Ratios but not the Multiresidential Class, and ii) at the reduced rate established through the 2017 Budget process iii) for Commercial Class only, accelerated by one-time amount of $300,000. With this plan, the tax ratios for the properties in the commercial class will reach 1.5 of the residential rate in 2020, 2021 for the Industrial class. City is required to pass a 2018 tax ratio by-law Section 308 of the Municipal Act, 2001 requires single tier municipalities to pass a bylaw to establish the tax ratios for each property class, no later than April 30 of each year. Recommendation That a by-law be passed to establish the 2018 tax ratios for each property class as set out in the 2018 Operating Budget. 215

236 Part Property Taxation Farmland Awaiting Development Section 313 of the Municipal Act, 2001 requires municipalities to establish a percentage reduction for farmland awaiting development. The minimum reduction is 25% of the residential rate. While there are presently no properties in the City of Peterborough in this category, a higher percentage reduction has been gradually phased in for several years. In 2015, the reduction percentage reached the maximum 75%. Staff recommends that the percentage remain unchanged for Recommendation That the 2018 tax rate for farmland awaiting development subclass be 75% of the residential rate. Other Tax Policies to be Considered The following recommendations essentially maintain the status quo in a number of tax policy areas as has been the practice for several years. Recommendations That a system of graduated tax rates within the Commercial and Industrial classes not be implemented for That the capping policy for 2018 for the Multi-residential, Commercial and Industrial classes be as follows: vii. viii. ix. Capping be based on a maximum increase of 10% of the previous year s CVA (Current Value Assessment) tax for the eligible property. No capping credit be applied for properties where the required billing adjustment is within $500 of the properties CVA tax; affected properties would be billed at their full CVA tax level. That properties that achieved CVA tax in 2017 remain at CVA tax from 2018 forward regardless of how reassessment affects the property. x. That properties that cross over from the clawback to the capping category or vice versa from 2017 to 2018 be taxed at CVA tax. xi. xii. xiii. That properties within the Industrial tax class are no longer eligible for the capping program. That properties within the Commercial and Multi-residential tax classes move towards CVA Tax over a four year phase-out period which commenced in 2016 and will achieve full CVA by That the threshold on the tax level for eligible new construction be 100%. 216

237 Part Property Taxation Taxable Assessment To establish a property s assessed value, MPAC analyzes property sales throughout the City. This method is called Current Value Assessment (CVA). In addition to sales, they look at the key features of each property. Five major factors usually account for 85% of the value: location; lot dimensions; living area; age of the property, adjusted for any major renovations or additions; and quality of construction. Other features that may affect value include: number of bathrooms, fireplaces, garages, pools, whether properties have water frontage, and so on. Re-assessment Four Year Cycle Continues As part of the 2007 Ontario Budget, the Liberal government announced plans to improve the property tax system to make it fair, predictable and sustainable. These plans included a four-year reassessment cycle. Initially, all properties in Ontario were reassessed, as of January 1, 2005, for the 2006 taxation year. Reassessments were planned to take place annually thereafter. However, in 2006, when the Ontario Ombudsman reviewed the Municipal Property Assessment Corporation (MPAC), he made a number of recommendations. To give MPAC sufficient time to review and implement the recommendations, the Province declared a two-year freeze on reassessments for the 2007 and 2008 property tax calculations. The freeze was over effective for the 2009 tax year. A reassessment took effect for the year 2009 based on market value as of January 1, 2008 which was phased-in over a four year period ending in the 2012 tax year. The next four year phase-in period was 2013 to The current assessment for 2018 is based on the market values at January 1, 2016 and this four year phase-in will end in This phase-in program is administered by MPAC as it provides the applicable phased-in assessed values to municipalities each year in the assessment rolls. This phase-in program applies to all property classes and all properties within each class that have experienced an assessment increase. All increases are subject to the phase-in regardless of the amount. By the 2020 taxation year, all properties will be paying taxes on their full destination assessment, that being the January 1, 2016, value. 217

238 Part Property Taxation An example helps illustrate. A residential property, where the January 1, 2016 value was $200,000 and the January 1, 2020 destination value has increased to $240,000, experienced an overall value increase of $40,000, or 20%. Under the phase-in program, the final destination value of $240,000 is not attained until year four. The following chart shows the affect of this sample assessment phase-in. Sample Phase-in for a Property where the Assessment is increasing from $200,000 to $240,000 Taxation Year Valuation Date January 1, 2012 January 1, 2016 January 1, 2016 January 1, 2016 January 1, 2016 January 1, 2020 CVA $200,000 $240,000 $240,000 $240,000 $240, Phase-In -- 25% 50% 75% 100% -- CVA for Taxation $200,000 $210,000 $220,000 $230,000 $240, Properties that experience a decrease in value between the two-reassessment years have received their full decrease in 2017 that carries forward through to, and including, Taxable assessment for 2018 estimated 4.1% increase The 2018 Budget is based on the phased-in property assessments as of January 1, 2016, updated for actual growth, and assessment adjustments. Taxable assessment for 2018 is estimated to increase by 4.1% over the 2017 budget level. The 4.1% figure is comprised of a 3.3% increase resulting from the 2018 phase-in of the January 1, 2016, reassessment and a.80% adjustment for real growth. Median residential assessment for budget purposes estimated 3.1% increase For the 2018 Budget, it is assumed that the median residential assessment for a single family dwelling (not on water) will increase relative to the estimated 2018 phase-in assessment values to a value of $243,800. This equates to a 3.1% increase over the $236,500 median value in

239 Part Property Taxation The following chart reflects the 2018 taxable assessment by class and subclass and the 2017 budgeted amounts Taxable CVA by Class and Sub-class Real growth equates to $0.9 million tax levy The real growth in taxable assessment times the 2018 municipal tax rates generates $858,750 tax levy dollars. 219

240 Part Property Taxation CVA growth The chart below shows the total taxable assessment changes for the years 2007 through to The following chart shows the relative breakdown of the total $8.9 billion 2018 taxable assessment by type. 220

241 Part Property Taxation Tax Ratios and Tax Rates Tax ratios are applied to current value assessment to determine weighted value assessment that is, in turn, used to calculate municipal tax rates. Tax ratios have a direct bearing on the tax rate calculations and ultimately determine the relationship that industrial, commercial, and multi-residential municipal tax rates have to the residential tax rate. The 2018 Budget reflects the tax ratios shown below. 221

242 Part Property Taxation Tax Ratios

243 Part Property Taxation 2018 Tax Ratio Reduction Plan Continuing the Tax Ratio Reduction Program does not impact tax levy requirements. If, however, the recommended ratio reductions were not applied, they would alter the municipal tax rates for each class and ultimately impact the 2.85% All-inclusive residential tax and sewer levy increase proposed in the 2018 Budget by 0.42%. In other words, if the 2018 tax ratios reduction program were not applied, the All-inclusive residential tax and sewer levy increase would be 2.43% as opposed to 2.85%. Tax Rate Impact of Tax Ratio Change The following chart shows the 2018 tax rates as presented in the 2018 Budget compared to what the 2018 rates would be if the Tax Ratio Reduction Plan was not implemented. 223

244 Part Property Taxation Weighted Taxable Assessment Current Value Assessment, multiplied by the applicable tax ratios, generates Weighted Taxable Assessment, as shown on the following chart that is ultimately used to calculate tax rates for each property class. Weighted Taxable Assessment

245 Part Property Taxation The 2018 Weighted Taxable Assessment by class is shown in the chart below. 225

246 Part Property Taxation Municipal Tax Rate Calculation The 2018 Residential Municipal Tax Rate is calculated by dividing the total net tax levy requirements for the year ($127.4 million) by the total Taxable Weighted Assessment ($ billion). The residential tax rate is then multiplied by each of the other classes applicable tax ratios to determine the tax rates for the other classes. For example, the % Residential tax rate for 2018 is calculated as follows: A Total 2018 net tax levy = $127,413,039 B Total Weighted Taxable Assessment = $10,137,127,309 C Residential tax rate = % ($127,413,039 / $10,137,127,309) X 100 The tax rates for the other classes are then calculated by multiplying the residential tax rate by the tax ratio for the class and subclass. As an example, the % Multiresidential tax rate for 2018 is calculated by multiplying the % Residential tax rate times the Multi-residential tax ratio. 226

247 Part Property Taxation The resulting 2017 and 2018 tax rates for each class are shown in following table Municipal Tax Rates 227

248 Part Property Taxation Municipal Tax Levy by Class The combination of CVA, tax ratios, weighted assessment, and tax rates results in municipal taxes levied by class as depicted in the following chart. Education Tax Rates Residential, Multi-residential and Farm Since 1998, a uniform education tax rate has been established by the Province to be levied against Residential, Multi-residential and Farm property, regardless of its location in Ontario. In reassessment years, the Province has adjusted the uniform residential/farm education rate to achieve a province-wide revenue neutral tax yield from these classes. Each municipality is affected differently depending on how market values in their area have increased or decreased relative to province-wide market change averages. While Council is not involved in the decision, the 2018 education rates do impact the total tax on assessment City taxpayers will pay in The 2.85% increase in the allinclusive tax and sewer levy, reflected in the 2018 Budget, is impacted by the education rate. For the 2018 Budget, it has been assumed that there will be a 4.5% decrease in the residential education tax rates established for 2018, from % to %. 228

249 Part Property Taxation Business Education Property Tax Rates When the Province first assumed responsibility for establishing education tax rates in 1998, each municipality had different Business Education Tax (BET) Rates depending on their 1997 education tax levels that had been set by the individual school boards. As a result, there are a wide range of BET rates throughout the province. Business representatives across the province criticized high BET rates as being unfair and being a barrier to economic competitiveness stating they put many regions of the province at a disadvantage compared to others. In the 2007 Ontario budget, the Province announced a plan to reduce the BET rates each year to achieve a target rate in The original target rate (applied in 2007 and 2008) was 1.60%, the target in 2014 was 1.22%. The target rate has been moved down over time to offset average assessment appreciation. The BET reduction program did in fact reduce rates from , however, the 2012 budget froze the ceiling rates, which are being adjusted on a revenue neutral basis only. Estimated 2018 Business Education Rates The City s 2018 BET rates will not be announced by the Province until early For purposes of the 2018 Budget, the Business Education rates have been assumed to remain at 2017 rates. The following table shows the 2017 and 2018 Municipal and Education Tax Rates including all of the above assumptions. 229

250 Part Property Taxation 2017 and 2018 Municipal and Education Tax Rates Note 1: 2018 Education Rates are estimates only. Actual rates will not be known until published by the Province. 230

251 Part Other Sections Budget Highlights Part 4: Other Sections 231

252 Part Other Sections Staffing New Proposed Positions in 2018 Budget There are 4.0 full-time positions and 1.42 part-time positions to move to full-time positions in the 2018 Budget full-time position has been eliminated. This results in a net increase of 4.42 FTE as set out in the following chart. 232

253 Part Other Sections Total Staff Complement The total staff complement includes the full-time equivalents (FTE) and part-time FTEs. The following chart shows the split by employee group and the gross expenditure totals. 233

254 Part Other Sections Staffing Complement and Dollars Total staff complement is 1, FTE - $80.5 million The 2018 Budget reflects a complement of full-time equivalents and parttime equivalents. The dollar value of direct compensation related to the complement is $73.6 million for full-time and $6.9 million for part-time positions for a total straight salary cost amounting to $80.5 million. This represents a $3.0 million (3.98%) increase over the 2017 levels. The increase covers 2018 requested positions, regular grid steps, the annualized impact of any 2017 hires, a provision for salary and wage settlements and the impact of the minimum wage increase related to The Fair Workplaces, Better Jobs Act. Benefit costs to increase by $0.6 million to $21.6 million Benefit costs are expected to be $21.6 million in 2018 and are up by $0.6 million over the $21.0 million for Benefit costs include a number of legislated benefits such as Canada Pension Plan Premiums, Employment Insurance Premiums, and OMERS Premiums plus a number of negotiated benefits such as extended health, life insurance, and dental coverage. Benefit costs are charged out to departments by applying a benefit overhead rate on labour which has remained unchanged from 2017 at 29% for full time labour and 10% for part time labour. The following chart shows the OMERS contribution rates for the past five years. Total compensation to be $102.1 million in up $3.7 million or 3.74% When the 29% benefit rate in effect for 2018 for full-time salaries, and the 10% benefit rate for part-time salaries are added, the total gross compensation for 2018 is $102.1 million. The $102.1 million represents 37.5% of the City s total $271.3 million gross expenditures and is a $3.7 million (3.74%) increase over the $98.4 million total compensation reflected in the 2017 estimates. 234

255 Part Other Sections 235

256 Part Other Sections 236

257 Part Other Sections Impact of Requested New Full-Time Permanent Positions The following chart lists the full-time permanent positions to be added in the 2018 Budget. For the position, Columns 8 through 18 show salaries and benefits, offsetting revenues, if any, and the net tax levy impact. The net tax levy impact for fulltime permanent positions is $297,

258 Part Other Sections New Full-time Permanent Positions Proposed in the Operating Budget (5.42 FTE) Manager of Communications Services The landscape for municipal communications has changed and the City is lagging behind other municipalities and behind the community's expectations. More than ever, the public today demands greater responsiveness, accountability and transparency in government. As well, stakeholders and residents are expressing a desire for convenient information available when and where they want it. More resources are required to improve in these areas. This position will help the City be more proactive in this area and will develop guiding documents, such as a Corporate Communication Plan and Community Engagement Policy, and lead these initiatives, as well as major projects such as the Community Branding implementation and Website Redesign. Trent Research Innovation Park Executive Director The detailed design, plan registration, marketing, and website for the Trent Research and Innovation Park are expected to be completed by the first quarter of Construction is underway and will continue throughout 2018 with the first tenant (Noblegen) expected to break ground later next year. The future success of the Innovation Park requires a full-time dedicated resource that would be costshared between the City and Trent University. The Executive Director position will be responsible for administering the day to day operations of the Park including marketing and promotion, lease agreements, web-site updates, permitting and regulatory tasks. The position will promote the Park by attending local and national events while acting as a liaison between other levels of government, external agencies and the business community. The Executive Director will serve as the Administrative lead on all initiatives between the City, Trent University, and Peterborough and the Kawarthas Economic Development relating to the Innovation Park. Social Services Case manager An additional OW Case Manager is requested to improve customer service in the Ontario Works Program. An OW file clerk position was eliminated in 2017 as administrative tasks related to tracking of child support were no longer required. In addition portions of other OW positions were reallocated to Children' Services Admin. The addition of an OW case manager will therefore have a net impact of 0 FTE and a small net financial impact for salary and benefits. 238

259 Part Other Sections FOI Co-ordinator It is recommended that this position move from part time to full time. The number and complexity of information requests has increased over the last five years. The part-time position is challenged, at times, to process requests for information within the legislated time frames, due to some of the volumous requests. Legal Services Admin Assistant / Law Clerk It is necessary to increase the existing.5 FTE position to a full-time position because of the addition of real estate services to legal services greater administrative support with real estate acquisition, dispositions, title searching and Teraview registrations. Also, additional title and off title searching is required for road widenings and the registration and discharge of minimum property standards orders, drafting of real estate reports and lease agreements, encroachment administration and tracking. The Heritage Researcher and Special Events Coordinator This position supports almost every aspect of the work in the Heritage Property Office (HPO). Since 2008, the HPO's Heritage Researcher position has been at.69 FTE. In the last ten years, both the scope of the job and the amount of work required to meet the existing job description have increased to the point that a part time employee cannot complete the duties satisfactorily. Since 2008, designated heritage properties have increased from 60 to 130. In 2016, Council adopted the City's first Heritage Conservation District (HCD) adding nearly 400 designated properties to the City's register. In April of 2017, Council also adopted a listing of over 100 significant properties requiring monitoring. The Heritage Property Tax Relief Program (HPTRP) is very successful and has grown to nearly 70 properties. New enrolment is currently averaging 2-3 properties a year. The mandatory annual compliance inspections, administration of applications and property renewals have greatly increased the position s workload. Council has also authorized a grant program for the HCD which will further increase the administrative workload. Age-Friendly Coordinator In partnership with the Municipality of Trent Lakes, Trillium funding was secured to hire a coordinator to develop the plan beginning in During the three years, a contribution to the costs of the position has been made from the Community Development Program Budget in each year on a shared 50/50 with the County. The County CAO has indicated support of consideration for this addition to enable a full time permanent staff to support the implementation of the Age-friendly Plan, support the Age-friendly Advisory Committee, and address seniors issues. 239

260 Part Other Sections Impact of Elimination of Existing Permanent Full-Time Position The following chart lists the permanent full-time position proposed to be eliminated in the 2018 budget. The net tax levy impact is ($25,080). 240

261 Part Other Sections Conversion of 2018 Approved Operating Budget to Full Accrual PSAB Compliant Budget 241

262 Part Other Sections Requests Not Included In the 2018 Approved Budget Requests not included in the 2018 Budget have been sorted by those items that are personnel related, and all others. 242

263 Part Other Sections 243

264 Part Other Sections 2018 Capital Financing Supplementary Information Capital Levy Calculation and Tax Supported Debt Capital Levy is the amount of money raised through taxation that appears in the 2018 Operating Budget that is transferred over to the Capital fund to be used to help pay for Capital projects Capital Levy Calculation 244

265 Part Other Sections Supporting notes to Capital Levy calculation The following provides an explanation to the calculations provided above: Lines 1 Base starting Points The starting point for the Capital calculations is the base Capital Levy ($9.4 million) and tax supported debt charges ($10.7 million) from the previous year. Line 5 Increased Capital Financing 0.5% of All-Inclusive Tax Increase As part of the 2018 Budget Guideline Report, Council approved the following motion to increase tax-supported debt charges and any increase to base capital levy to continue to implement the enhanced Capital Financing Policy: That the Draft 2018 Operating Budget reflect an additional 0.5% all-inclusive (Municipal, Education, Sanitary, and Storm Sewer Surcharge) increase to fund the 2018 increase for tax-supported debt charges and any increase to base capital levy to continue to implement the Capital Financing Policy approved by Council at its meeting held April 23, The full 0.5% increase in the amount of $790,912 has been applied towards increasing tax supported debt payments. Line 6 Flood Reduction Master Plan Capital Levy ($187,500) In 2017, $1,612,500 of the potential $2.5 million capital levy traditionally set aside for Flood Reduction Master Plan (FRMP) projects was utilized for FRMP Capital projects. In 2018, $187,500 has been added to the $1,612,500 from 2017 to provide for the $1,800,000 Flood Reduction Master Plan Capital Levy being requested. Line 7 Incremental Utilities Dividend - $114,312 At its meeting held March 27, 2000, based on Report FAFS dated March 20, 2000, Council resolved that the tax supported debt and Capital Levy provision be increased by the estimated total revenues to be received in each year from the restructured Peterborough Utilities Commission Ontario Business Corporations Act companies. The incremental increase of $114,312, to be received from the Utilities Group of Companies in 2018, will be used to increase base capital levy in Line Capital Financing The amount that has been raised in the Operating Budget and transferred to either the Capital fund through Capital Levy, or the amount that will go towards tax supported debt principal and interest payments. 245

266 Part Other Sections Federal Gas Tax Program During 2005, the Federal government announced that municipalities would receive some funding as part of the Federal Gas Tax (FGT) Program. The fund is a permanent source of financing for municipal infrastructure. Given that the funding is predictable, long-term and stable, it is able to help address the massive, province-wide infrastructure deficit. Each provincial allocation is based on respective populations relative to the national population. Each municipal share within each province is based on the respective population of the municipality to the provincial population. In Ontario, the program is administered by the Association of Municipalities of Ontario (AMO). The Federal government announced that, starting in 2014, the Gas Tax Fund would be indexed at 2% per year in $100 million increments. The indexing formula increases the actual payment when the calculation passes the next $100 million threshold. The benefit of indexing affected municipal governments in 2016 when the threshold was met, and will again in At the May 20, 2014 Council meeting, based on recommendations outlined in Report CPFS dated May 12, 2014, Council authorized the execution of a 10-year Municipal Funding Agreement extending to The new agreement took effect on April 1, The new agreement now allows municipalities to invest in 17 eligible categories including local roads and bridges (including active transportation), short-sea shipping, short-line rail, regional and local airports, broadband connectivity, public transit, drinking water, wastewater, solid waste, community energy systems, brownfields redevelopment, sport, recreation, culture, tourism, disaster mitigation and capacity building. There is now more flexibility as category restrictions have been removed and municipalities can bank or carry over funding for up to five years. Outcomes are now focused on community benefits and not just environmental outputs. Allocations for are based on population data from the 2011 Census, whereas the allocations for will be based on the 2016 Census. Asset management is a key component of the agreement. The Federal Government has stated that municipalities will have to show progress and outcomes of Asset Management planning over the life of the new agreement. Another key component is incrementality. Funds received are not intended to replace or displace existing sources of funding for tangible capital assets. The City must demonstrate that the average annual investments over the life of the agreement ( ) exceed the base amount of $38,219,096 ( average). The average actual capital spending over the life of the agreement is currently $49,176,360, which exceeds the base amount and meets the incrementality criteria of the Gas Tax agreement. 246

267 Part Other Sections The City s allocation for the years is set out in the following chart. Federal Gas Tax Allocations 247

268 Part Other Sections For 2018, staff have estimated an allocation of $5.0 million and, when combined with some residual unallocated FGT funds and bank interest, provides $5.8 million in funding for the 2018 Capital Budget. This allocation will assist in funding the following capital projects: 2018 Capital projects to be funded from Federal Gas Tax Reserve Fund (000 s) 248

269 Part Other Sections Development Charges Reserve Funds ($2.4 million) Development Charges are levied in accordance with various Development Charge bylaws that were approved in August 2017 and September 2014, all of which establish various Development Charge rates. The 2017 Capital program assumes $1.7 million will be drawn from various Development Charge (DC) Reserve Funds to fund growth related Capital projects to be undertaken during 2018 and $10.4 million to be funded from DC funded debentures. The current rate for the Growth Areas is in effect until July 31, 2022, whereas the Citywide rates are in effect until December 31, The 2018 rates are set out on Schedule 1 on the following page. DC commitments as of December 31, 2015 exceed current balances by $9.7 million The 2016 Development Charges Continuity Schedules 2 and 2A, shown on Pages 251 and 252, detail the activity for The $11.9 million balance as of December 31, 2016, and outstanding budgeted commitments of $21.6 million leave a shortfall of $9.7 million in the fund. In addition to the $9.7 million, there is $25.6 million in existing debt payments on growth related capital works already completed; however, future DCs collected will service the debt payments in future years. Many of the Sub Reserves are overdrawn as the work must proceed in advance of the development. They will be replenished as growth actually occurs and development charges are collected. 249

270 Part Other Sections Development Charge Rates 250

271 Part Other Sections Development Charges Reserve Funds Statement of Continuity as of December 31,

272 Part Other Sections 252

273 Part Other Sections Long Term Debt Long term debt plays an integral part in financing the City s capital works, and related principal and interest payments affect the Operating Budget directly. There are two basic types of long-term debt. One is debt that has been issued and is outstanding and the second is debt that has been approved in previous years budgets but is not yet issued. Debt Approval Cycle Debt includes long-term debt and certain lease obligations of the City and its local boards. As stipulated in the Municipal Act, 2001, long-term debt can only be used to finance capital assets. The City issues debt that is repaid from a variety of sources including water, wastewater and parking user rates, development charges, provincial/federal gas tax, user fees, property taxation and local improvements. The following graph gives a high level overview of how debt is typically incurred through the capital budget process. 253

274 Part Other Sections Debt Issued and Outstanding - December 31, 2017 This is the debt issued and for which the City is locked into paying principal and interest repayments until maturity. The debt to be recovered from general tax revenues is called tax supported. The numbers shown represent outstanding principal only and do not include any interest cost. 254

275 Part Other Sections Historical Debt Outstanding 2008 to 2017 The level of debt issued and outstanding is tracked on the following graph. 255

276 Part Other Sections Debt Approved but not Issued November 30, 2017 In addition to debt issued and outstanding, $78.1 million debenture financing has been approved in previous years budgets or through Reports to Council but has not yet been issued. Reasons may be that the project has not been fully completed or the project has been delayed. 256

277 Part Other Sections Debt Issued and approved plus approved but not issued When both Issued and Approved and Approved But Not Issued types of debt are added together, the total debt load on the Municipality is $187.3 million. The graph indicates how the debt servicing costs are being paid for: 257

278 Part Other Sections The next graph takes the same $187.3 million Issued and Approved and Approved But Not Issued and presents the breakdown by project type, where the money was spent. As shown, the largest single area of debt is Roads, followed by Housing, Sanitary Sewers and the Facility Upgrades. Level of debt Provincial guidelines Each year the Province calculates the City s Annual Debt Repayment Limit. The Province stipulates that a municipality may not commit more than 25% of its total own-purpose revenues (Net Revenues) to service debt and other long-term obligations without obtaining prior approval from the Ontario Municipal Board. 25% of Net Revenues equates to $197.1 million and is based on the 2015 Financial Information Return as reported to the Province. For 2017, the Province has calculated the City s annual debt repayment limit at $49.3 million. Of this amount, the City is using $19.0 million. These amounts include principal and interest repayments on debt issued and outstanding, debt issued by local boards (excluding COPHI), lease obligations and loan guarantees. This leaves an additional capacity, according to the Province, of $30.3 million. According to provincial legislation, the City is using 38.5% of the 25% ($19.0 million /$47.9 million 258

279 Part Other Sections = 38.5%) of its debt capacity, or 9.64% ($19.0 million /$197.1 million = 7.15%) of its own-purpose revenues. Debt Management Policy City Policy In addition to the provincial guideline, the City has its own, more stringent Debt Management Policy. The policy approved as part of report CPFS dated April 4, 2012, removed the requirement that the amount of new tax-supported debt approved in any budget year will be limited to the amount of tax supported principal retired in the previous year plus any accumulated unused balance from previous years. It established a new threshold with an annual debt repayment limit that parallels the provincial calculation based on O. Reg 403/02 with the following criteria: That the maximum current year annual debt repayment is based on 15% of the City s consolidated own-purpose revenues (Net Revenues), inclusive of the taxsupported current year debt payment, which is limited to 8% of the corporation s own purpose revenues. That, in addition to the debt charges for the current year, provision is made for any: Debenture financing approved through by-law but for which no debt has yet been issued, Debenture financing approved through the Capital Budget, but for which no by-law has yet been established, Outstanding financial commitments beyond the normal course of business, Loan guarantees and significant lease obligations, Any debt issued by, or on behalf of, the City s local boards (excluding COPHI) including mortgages, debentures or demand loans. 259

280 Part Other Sections Remaining Debt Capacity at December 31, 2017 Based on the capital financing policy, the debt capacity available at December 31, 2017, is $6.1 million of tax-supported (TS) debt, and $16.5 million of non taxsupported (Non TS) debt for a total of $22.6 million. To derive at these amounts, assumptions are made with respect to the term (TS = 10 years, Non TS = 20 years) of the debt and the expected interest rates available in the market place. 260

281 Part Other Sections Remaining Debt Capacity at December 31, 2018 The 2018 payments of debt principal are paid as per the normal course of business throughout the year, the TS debt capacity available at December 31, 2018, becomes $13.7 million and the Non TS debt capacity available becomes $5.2 million for a total of $18.9 million as shown on the following graph. The decrease in capacity from 2017 is a factor of the reliance upon debt in 2018 Capital Budget ($18.9 million) and the mix of the terms of debt outstanding (10 Year vs. 20 Year), as debt capacity is determined by debt servicing costs. Principal and interest payments on short term debt (10 Year) are higher than debt amortized over a longer period of time (20 Years). How quickly the remaining debt capacity is exhausted will continue to be subject to Council s direction through Report CPFS dated April 4, 2012 as follows: That, to phase-in the new maximum debt limit, the total annual amount of new taxsupported debt charges and any increase in the capital levy provision be limited so that the impact on the residential All-inclusive tax increase does not exceed 1% per year. 261

282 Part Other Sections Reserves and Reserve Funds Reserve and Reserve Fund Balances ($121.3 million at October 2017) Reserves and Reserve Funds play a critical role in municipal budgeting and financial strength. The balances reflected in the schedule are at a specific point in time, October 2017, and amount to $121.3 million. Most of the fund balances are committed by legislation or specific resolutions of Council for very specific purposes and form an integral part of the City s long term Capital financing plan. The following chart provides details of the Reserve and Reserve Funds Balances and Commitments as of October The Chart excludes 2018 budgeted transfers to Reserves and planned 2018 expenditures from Reserves. 262

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