Regional Municipality of Waterloo. Budget Committee. Agenda. Media Release: Friday, October 20, 2017, 4:30 p.m. Tuesday, October 24, 2017

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1 Media Release: Friday, October 20, 2017, 4:30 p.m. Regional Municipality of Waterloo Budget Committee Agenda Tuesday, Approximately 1:30 p.m. (following Special Council) Council Chambers, 2 nd Floor 150 Frederick Street, Kitchener 1. Declarations of Pecuniary Interest under the Municipal Conflict of Interest Act 2. Opening Remarks (S. Strickland) 3. Opening Remarks (M. Murray) Preliminary Budget Presentation (C. Dyer) 5. COR-FSD-17-25, 2018 Budget Overview (Information) 2 6. Next Meeting November 22, Adjourn Section 2-

2 2 2 Region of Waterloo Corporate Services Financial Services and Development Financing To: Chair Sean Strickland and Members of the Budget Committee Date: File Code: F05-30 Subject: 2018 Budget Overview Recommendation: For Information Summary: The purpose of this report is to provide an update on the development of the Region s 2018 Budget. Subsequent Budget Committee meetings will provide an opportunity for detailed discussions on the proposed 2018 base budget, budget issue papers, and the proposed ten year capital program. The current position of the Regional property tax supported budget (excluding budget issue papers) results in a 2018 tax impact of approximately 2.2% net of assessment growth. User rate increases are under review and 2018 wholesale rate increases are recommended to remain the same as projected for 2018 in the 2017 budget: Water Supply at 1.9% and Wastewater Treatment 7.9%. Retail user rates in 2018 are recommended also remain the same as projected in the 2017 budget for 2018: Water Distribution at 7.9% and Wastewater Collection at 5.9% Section 2- Page 1 of 18

3 3 3 Report: 1. Economic Conditions Report COR-FSD dated June 20, 2017 provided an overview of economic conditions affecting the Region s 2018 budget. Since that time, a number of significant developments have occurred, including: The consensus forecast for real GDP growth in 2017 is now 3%. Over the first six months of 2017, the Canadian dollar fluctuated around $ $0.77 $US but has risen to $0.80 USD in recent months. Short term interest rates have risen, with 0.25% increases in the overnight Bank of Canada interest rate announced in July and September of this year. Long term borrowing rates have also increased over the last four months. Oil prices have fluctuated between $43 USD and $52 USD per barrel over the first nine months of The current price of oil is $51 USD. The federal government is predicting a 2017/18 deficit of $28.5 billion while the Ontario provincial budget is projected as balanced in 2017/ Inflation The most recent Consumer Price Index figures (August 2017) show consumer inflation running at 1.7% for Ontario and 1.6% for Canada, year over year. Rising oil prices are expected to put upward pressure on consumer inflation rates for the remainder of Forecasts for 2018 and 2019 are in the 2% range Interest Rates The overnight interest rate set by the Bank of Canada has increased to 1.0% (from 0.5% at this point last year). Long term borrowing rates have trended in the same direction. The Region completed a $45 million debenture issue in June at rates of 2.07% for a 10 year serial debenture ($34.2 million) and 2.72% for a 20 year serial debenture ($10.8 million). Current 10 year borrowing costs for the Region are in the 2.7% to 2.8% range. Most financial institutions are projecting long term borrowing rates to continue to increase in 2018, although there is some variation in terms of both timing and extent of such increases Section 2- Page 2 of 18

4 Economic Growth Growth in the Canadian economy is looking more favourably than a year ago. Oil prices have rebounded slightly and the Canadian gross domestic product growth in is expected to reach 3% in Local Economy At a local level, the regional economy continues to show strength. As reported in the staff report PDL-CPL Building Activity and Growth Monitoring, the total value of building permits issued in 2016 was approximately $1.4 billion. This included almost 5,370 residential units and over 1.8 million square feet of new nonresidential floor space. Building permit activity in 2017 remains strong and is expected to increase significantly in 2018 in anticipation of the expiration of downtown core Regional Development Charge (RDC) exemptions on February 28, Regional Development Charges Regional Development Charges (RDCs) are a significant source of funding for growth related capital projects undertaken by the Region. Recent RDC collections are summarized in the following table: Regional Development Charge Collections ($ millions) YTD (September) Residential $21.0 $44.1 $33.9 $67.3 $31.3 Non-Residential $10.5 $14.3 $10.4 $13.4 $7.5 Total $31.5 $58.4 $44.3 $80.7 $38.8 RDC revenue for 2016 was $80.7 million ($67.3 million residential and $13.4 million non-residential), up by $36.4 million or 82% compared to Total 2016 RDC revenue was significantly higher than previous years due to an increase in building permits issued in 2016 in advance of increased Education Development Charges which came into effect June 1, 2016 and RDC rate increases related to the amended by-law for Transit and Waste Management coming into effect in January RDC collections were originally anticipated to be approximately $73 million for 2017 but will likely be lower by the year s end due to building permits that were advanced into Section 2- Page 3 of 18

5 5 5 As previously mentioned, the expiration of downtown core development charge exemptions in early 2019 is expected to result in an increased number of building permit applications in late 2018 and early Staff are reviewing anticipated building permit activity in order to quantify the amount of development charges that may be exempted and will be bringing forward a report on this matter in November. The following table outlines the history of development charge exemptions paid over the last eight years: Core Area Exemptions by Municipality ($000's) Aug YTD Cambridge $1,052 $76 $26 $246 $0 $1,211 $41 $1,638 $1,605 Kitchener , ,169 Waterloo 11, Total $12,225 $114 $1,014 $252 $0 $4,879 $130 $1,670 $3,774 For reference, the 2009 figures in the table above coincide with the expiry of downtown core exemptions in Waterloo in that year Unemployment rates and Ontario Works Caseload Levels The unemployment rate in September 2017 was 4.5% in Waterloo Region which was below that of Ontario at 5.6%. Ontario Works caseload levels have been in the range of 8,000-9,300 per month since the beginning of The August 2017 caseload (9,288) remains 51% higher than pre-recession levels, and is 6.7% higher than August Regional Budget Recap The 2017 Budget included a Regional tax levy of $491 million, an average tax rate impact of 2.95% (of which 2.31% related to direct Regional programs and 0.64% related to Police Services), and user rate increases of 1.9% for water and 7.9% for wastewater effective March 1, The Regional tax levy comprises approximately 53% of the total average residential property tax bill. Approximately 68% of the 2017 tax levy is for direct Regional services and 32% is for Police Services. 3. Draft 2018 User Rate Operating Budgets and Capital Plan Staff is in the final stages of preparing the 2018 Water and Wastewater Operating Budgets and 10 year capital program. At this point, the 2018 Water and Wastewater Section 2- Page 4 of 18

6 6 6 operating budgets include proposed operating expenditures in 2018 of $75 million, which is comprised of $35 million for water supply, $40 million for wastewater and $3 million for water distribution/wastewater collection in the townships of Wellesley and North Dumfries. Due to wet conditions in spring and summer 2017, there is a water revenue shortfall to the end of September of $2 million. If water revenues continue at this pace, a revenue shortfall of 4.5% or $2.5 million may result at year end. There is also a shortfall in wastewater revenue to the end of September of $722,000 due to lower than anticipated flows. If wastewater revenues continue at this pace, a revenue shortfall of approximately 1.6% or $1 million may result at year end. As part of the budget process, staff review the operating expenditures, revenues, capital program and flow volume. Adjustments to the flow volumes have been made to best estimate the flows for The proposed water and wastewater budgets include wholesale rate adjustments of 1.9% for water and 7.9% for wastewater. The proposed increase in the water wholesale rate (1.9%) is unchanged from the 2018 increase projected in the 2017 rate model. The proposed increase (7.9%) in the wastewater treatment rate is also unchanged from the 2018 increase projected in the 2017 rate model. Retail water rates are proposed to increase by 7.9% for water distribution, which is 1% lower than the 2017 rate increase and 5.9% for wastewater collection. The 2018 budget proposes to keep the monthly charge for both retail water and wastewater unchanged. The following tables provide a relative comparison to 2017 approved rate increases and highlights that there are no changes to proposed rate increases for 2018 when comparing 2017 and 2018 water and wastewater rate models approved user rate increase Projected 2018 user rate increase from 2017 forecast Current estimate of 2018 user rate increase Water supply 1.9% 1.9% 1.9% Wastewater treatment 7.9% 7.9% 7.9% Water distribution 8.9% 7.9% 7.9% Wastewater collection 5.9% 5.9% 5.9% 2017 approved monthly service charge Projected 2018 monthly service charge from 2017 forecast Current estimate of 2018 monthly service charge Water distribution $9.00 $9.00 $9.00 Wastewater collection $7.00 $7.00 $ Section 2- Page 5 of 18

7 7 7 Total capital spending for water and wastewater, including retail water distribution and wastewater collection, is projected to be $1.0 billion over 10 years. Staff continues to review capital plan financing options reflecting anticipated RDC collections and the expected timing of certain growth related capital projects. On the wastewater side in particular, there are significant capital costs being incurred in the early years of the capital program. While these upgrades provide for long term sewage capacity, the benefitting growth will take place over an extended period of time, and hence so will the RDC collections. Staff is close to finalizing a development financing strategy for the capital program that will see certain growth-related projects debt financed in order to spread the cost over a longer period and better match costs to anticipated RDC revenues. In addition, staff has been reviewing the financing of non-growth related capital costs and are in the process of finalizing new 10 year rate models. At this point, staff have identified a need for new non-growth related debt for water supply for Manganese Treatment Upgrades. For wastewater, a modest amount of user rate supported debt will be required in the first three years of the forecast. This will spread the cost of certain infrastructure projects over a broader group of benefitting users at a relatively low financing cost. The Water and Wastewater Operating and Capital Budgets, which are scheduled to be approved on December 13, 2017, will be the subject of a detailed staff presentation at the Budget Committee meeting on November 22, Draft Tax Supported Capital Program The Region of Waterloo s Ten Year Capital Program sets out planned investments in infrastructure, facilities, equipment, vehicles and related studies, along with the proposed sources of financing for such investments. Staff undertook a detailed review of capital programs with all departments in June and July. This process included reviewing the need, scope, cost and timing of projects. These discussions provided the basis for determining long term borrowing amounts in 2017 and for preparation of the Capital Program. One result of these discussions is that overall debt servicing costs funded by the tax levy, originally estimated to be $1.3 million higher in the 2018 budget than in the 2017 budget, will now be closer to $1.1 million higher. Major capital works which will continue or which will be undertaken in 2018 include: Numerous road expansion and rehabilitation projects Building lifecycle work at various Regional Administration buildings Housing facilities lifecycle work Landfill cell development Section 2- Page 6 of 18

8 8 8 Paramedic Services headquarters and operations centre The updated ten year capital program will also reflect the following significant changes: Addition of projects set out in the Airport master plan (approved through report PDL-AIR Region of Waterloo International Airport Master Plan and Business Plan (March 2017) dated April 4, 2017); Updated cost estimates for the proposed GRT Northfield Drive storage and operations centre; Additional buses in accordance with the recently approved GRT business plan (report TES-GRT Proposed GRT Business Plan , dated August 22, 2017); Deferral of significant facility expansions as a result of the acquisition of 200 Frederick (report PDL-LEG-17-30/COR-FFM Land Acquisition 200 Frederick Street, Kitchener, dated April 25, 2017); and, Deferral of the Curatorial Centre expansion as approved by Council through report PDL-CUL Curatorial Centre Expansion Project Deferral, dated September 12, Sources of funding for the tax supported capital program are limited to property taxes (in the form of current year allocations, contributions from reserves, and debt to be paid by future taxpayers), development charges, grants and subsidies from other levels of government, and in a small number of cases third party recoveries. The tax supported capital program is funded in part by regional development charges (RDC). Staff continues to review RDC reserve funds and projected collections in order to assess capital program affordability over the forecast period. The capital financing strategy that will be presented to Budget Committee in November will incorporate debt financing as required for the growth related shares of certain projects. Full details of the capital program and associated financing strategies will be included in the Preliminary 2018 Budget Book and presented at the November 22, 2017 Budget Committee Preliminary Tax Supported Operating Budget Staff is close to completing the preliminary 2018 base budget for tax supported services, which reflects the amount of funding required to deliver the current Council approved level of service. Base budgets for 2018 will reflect all collective agreements, estimates for benefit rates and inflation, annualization of prior years approved initiatives, debt servicing costs, estimated provincial and federal funding and user fee revenue. Details regarding the 2018 base budget will be provided in the Preliminary Section 2- Page 7 of 18

9 9 9 Budget Book at the November 22 Budget Committee meeting. This document, along with a package of budget issue paper requests, will be distributed with the meeting agenda on November 17. Current estimates of the preliminary base budget position excluding Police Services require a property tax levy increase of approximately $16 million which translates to an estimated 2.2% tax rate impact over The current preliminary position, as set out in the table below, incorporates estimated assessment growth of 1.4% pro-rated between Regional Services (0.96%) and Police Services (0.44%). The opening base position excludes any provisions for service enhancements made through budget issue papers. Status Of Preliminary 2018 Tax Supported Operating Budget (excluding Budget Issue Papers and Police Services) Tax Rate % impact Direct Regional Services current estimate 3.2% Less: estimate for regional share of assessment growth (1.0%) Tax impact of Regional programs current estimate 2.2% There are a number of projects, factors and initiatives that impact the 2018 operating budget, and these are set out below Provincial Uploading and Ontario Works Caseload 2018 is the final year of the upload of Ontario Works benefit costs by the Province. The subsidy rate for Ontario Works benefit costs is scheduled to increase to 100% from the 2017 rate of 97.2%. This increase in cost sharing will result in a savings of $1.65 million to the Regional tax levy. The Court Security upload, which began in 2012, is also phased and is scheduled to be completed in The table below summarizes the life to date and projected impact of uploading on the Region of Waterloo. Court Security upload savings are reflected in the Police Services budget as that is where court security costs are budgeted Section 2- Page 8 of 18

10 10 10 Impact of Provincial Uploading ($ millions) Program Total ODSP $3.4 $0.7 $8.5 $10.2 $22.8 OW OW Admin Court Security* Total $3.4 $0.7 $9.0 $13.3 $1.7 $2.0 $2.2 $2.8 $2.4 $2.4 $2.4 $42.3 *updated amounts for Regional Transportation Master Plan (RTMP) The Council-approved funding strategy for Rapid Transit implementation and Grand River Transit service expansion is outlined in the following table: RTMP Funding Strategy (all $ figures in millions) Tax increase (% of prior year urban levy) Total property tax funding Incremental budget impact before funding offsets Debt retirements from Admin buildings 1.5% 1.5% 1.25% 1.5% 1.5% 1.5% 1.5% 0.75% $8.8 $14.1 $18.7 $24.4 $30.3 $36.6 $43.0 $46.4 $5.0 $5.3 $4.6 $5.7 $6.0 $6.2 $6.5 $3.4* ($0.6) ($4.5) ($1.5) Provincial uploading ($1.2) ($1.5) ($1.7) ($1.7) ($1.7) ($1.7) ($1.7) -- Net budget impact $3.2 ($0.7) $1.4 $4.0 $4.3 $4.5 $4.8 $3.4 *projected Section 2- Page 9 of 18

11 11 11 The projected increases are subject to annual budget deliberations and are arearated to the urban transit service area (the three Cities). Regional Council also approved in 2011, subject to annual budget deliberations, that budget reductions resulting from the retirement of debt on Regional buildings at 150 Frederick and 99 Regina Streets and the uploading of social assistance costs be allocated to offset the tax rate impact arising from the RTMP. The debt servicing cost savings were realized in 2012, 2013 and 2014, while social assistance upload savings are realized from 2012 to Employee Compensation All collective agreements had been renegotiated and ratified. The base budget for 2018 reflects the salary and benefit provisions of all collective agreements. Employee compensation costs represent an estimated 30% of total budgeted Regional spending in Provincial Offences Act (POA) / Red Light Camera Revenues As mentioned in the periodic financial report COR-FSD presented to Administration and Finance Committee on October 2, 2017, year to date POA revenues are exceeding the budget estimate due to several large fine collections. The projected year end position for POA revenue has been updated to a surplus of $565,000, partially offset by higher than budgeted expenses of $262,000 related to staffing backfill and an additional temporary clerk, adjudication fees for additional court dates, security and extra crown prosecution fees to deal with the volume of cases. Given the uncertainty regarding sustainability of the positive variance in 2017 due to the nature of large fine collections, POA revenues have been increased modestly by $300,000 in the base 2018 budget`. POA/Red Light Camera Revenues will be the subject of a budget information paper at the November 22, 2017 Budget Committee meeting Grand River Transit Fare Revenue Transit ridership revenues are currently trending slightly below budgeted levels. It is not certain that this trend will continue to year end but a minor revenue shortfall estimated at approximately 1% or $270,000 could result in For the 2018 budget, staff have adjusted revenues based on current ridership and market trends Section 2- Page 10 of 18

12 Provincial and Federal Government Funding An additional $22.9 million in provincial funding is anticipated in Provincial and Federal funding for cost-shared services in the 2018 budget is projected to be as follows: Provincial and Federal Subsidy Estimates ($ millions) Program 2017 budget 2018 budget Change Ontario Works/Social Assistance $98.3 $108.3 $10.0 Children's Services Public Health Long Term Care & Community Programs Federal Gas Tax Paramedic Services Homelessness Programs Provincial Gas Tax transfers Community Housing (1.4) Total $246.3 $269.2 $22.9 There is some uncertainty with respect to 2018 budgeted revenues for the Public Health and Paramedic Services programs. The 2017 approval from the Province of Ontario remains outstanding for both programs. Once received, they will be reviewed to determine the impact on 2017 variance projections and the 2018 budget Ontario Works Discretionary Benefits Through the Employment and Income Support Division of Community Services, the Region provides services to individuals on social assistance (Ontario Works and Ontario Disability Support Program). Provision of this program is discretionary and service levels are at the discretion of Regional Council. Regional Council established a working group of Regional Councillors and staff to review the OWDB program, receive community input and make recommendations on the 2018 budget and service levels. Report CSD-EIS dated was presented to Community Services Committee for review. Based on the recommendation of the working group, a budget issue paper for $235,000 in additional funding for the OWDB will be submitted to Budget Committee for consideration Section 2- Page 11 of 18

13 Housing Services Loss of Federal Subsidy Federal housing subsidies, which flow through the Province, will be reduced by $1.3 million in The tax levy impact, net of expiring mortgage agreements, will be an increase of approximately $696,000. Non Profit and Cooperative Housing Subsidies The Region provides subsidies to non-profit and cooperative housing providers valued at $25.0 million per year based on various funding models. Subsidies to housing providers in 2017 are estimated to be under budget by $995,000 which equates to a variance of 4.0%. This is due in part to one time recoveries for prior years now being complete. A budget reduction of $426,000 has been included in the preliminary base 2018 budget. Housing move out/unit refurbishment costs Move-out/unit refurbishment costs (flooring, painting, bathroom restorations) are projected to be higher than budget by $1.0 million in 2017 ($1.5 million in 2016) as reported in COR-FSD Periodic Financial Report Year End Projections Based on Financial Results to August 31, 2017, this cost trend is in large part due to aging stock, efforts to better align unit occupancy, size, and configuration with current client needs, updated for changes in life circumstances, i.e., family size, economic need, etc. A budget adjustment of $350,000 was made in the 2017 budget and a further increase of $350,000 has been included in the 2018 base budget. Staff will continue to monitor these costs during Waste Management Collection and Processing Contracts. A new Waste Management collection contract took effect in March 2017 (as set out in report TES-WMS-16-03, dated April 12, 2016). The 2018 waste collection budget has been adjusted by $190,000 to reflect contract inflation, an increased number of stops, as well as the annualization of savings related to the new contract for the remaining two months. The budget for waste hauling of green bin material to the City of Guelph facility has been increased by $206,000 to cover the increased loads and inflationary increases. In addition, provisions for green bin and blue box processing have been increased to cover additional tonnage and price inflation (green bin $357,000, blue box $300,000). Further information is provided in report TES-WMS Green Bin Program Processing Update, dated Section 2- Page 12 of 18

14 Fuel Prices A fuel price strategy was adopted in the budgets to mitigate the risk of a potential increase in oil prices while taking advantage of lower fuel prices. The strategy provides that 50% of budget savings resulting from lower fuel prices will accrue to the property tax levy and 50% will be transferred to reserves to reduce future borrowing requirements. The 2017 fuel budgets were set using a price of $0.90 cents/litre for both diesel and unleaded. For the preliminary 2018 base budget, the budget price for both fuel types has been maintained at $0.90/L Capital Financing In June of 2016 Council approved the Capital Financing Principles set out in Report COR-FSD The principles have been used to develop the financing of the capital program, and include: As reported on June 14, 2017 in COR-TRY Regional Debenture Issue Dated June 19, 2017, the Region closed a $45 million debenture issue, of which the Region s share was $40.9 million; the remaining amounts were issued on behalf of area municipalities. Approximately $6.4 million in 10 year debt and $15.6 million in 20 year debt will be entirely supported by the property tax levy (both Region and Police), $18.7 million in 10 year debt will be funded by future wastewater user rates and $4.4 million in 20 year debt will be funded by future wastewater development charge collections. In addition, provisions have been made for a fall debenture issue in the range of $30 million: $17 million in property tax supported 10 year debt, $4.1 million in 10 year debt supported by future wastewater user rates, and $8.8 million in 20 year debt supported by future wastewater development charge collections. Overall, debt servicing costs in the property tax budget, net of debt retirements, are estimated to increase by $1.1 million. Debt servicing cost reductions arising from debt retirements have been repurposed as transfers to capital and equipment replacement reserves in order to preserve the overall level of capital financing and reduce future borrowing. Specifically, 50% of debt servicing cost reduction relating to the Airport ($123,000) has been repurposed as part of the 2018 budget. The Building Lifecycle Provision, introduced in 2015, is a critical funding strategy specifically intended for financing Regional facility asset renewal works. The goal of this strategy is to (eventually) eliminate the issuance of debt for facility repair and refurbishment projects. Issuing debt to finance more significant renewal works will continue until such time that the level of contribution to the lifecycle reserve is sufficient. The current level of contribution is $4.0 million, Section 2- Page 13 of 18

15 15 15 while analysis of the proposed capital forecast indicates that a sustainable budget provision in the range of $26 million annually is required. In support of future asset management plans, staff are developing a capital asset renewal funding strategy in order to ensure all Regional asset renewal works are adequately funded. This funding strategy will incorporate the asset management plan update contemplated for early 2018 and is planned to be presented as part of the 2019 budget process Assessment Growth Assessment growth in 2016 for the 2017 budget year was 1.34%, representing the lowest level of growth, along with 2010, in the Region in the last 18 years. History of Assessment Growth 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 3.53% 3.29% 3.12% 3.03% 2.99% 2.62% 2.35% 2.00% 1.84% 2.15% 1.34% 1.85% 1.72% 1.71% 1.52% 1.41% 1.34% 1.40% 1.00% 0.50% 0.00% estimated * Budget Year As noted earlier in this report, the current assumption for assessment growth is 1.4% in 2017 for the 2018 budget. This assumption incorporates a number of factors such as: A province-wide reassessment was undertaken in 2016 to update property values to reflect market conditions as at January 1, There are generally more Requests for Reconsideration and assessment appeals in the first year following a reassessment; Class changes, legislative changes and changes in assessment methodologies are impacting in-year weighted assessment growth. MPAC has been resolving outstanding big box store appeals which has had a negative impact on weighted Section 2- Page 14 of 18

16 16 16 assessment. Properties moving from classes with a higher tax ratio to a class with a lower tax ratio, such as a multi-residential property becoming a condominium property, or properties changing to exempt status, also reduce in year assessment growth; and, The Assessment Review Board s commitment to settle the backlog of appeals relating to assessment years, resulting in decreased assessed values and subsequent write-offs during Assessment growth is a net postion after accounting for the various factors that impact the assesment base as noted above. The current assumption of 1.4% bears some risk, particularly related to appeals settled before the close of the assessment roll, and staff continues to monitor assessment growth. The 2017 assessment roll will be returned in early December and a full update will be provided at the December 13, 2017 Committee meeting in the form of an information paper Base Budget Reductions On an annual basis, staff reviews operating budgets in an effort to identify efficiencies and budget reductions which do not affect service levels. This year s review has resulted in base budget reductions of $1.7 million. The base budget reductions include cost reduction measures such as implementing energy saving retrofits, reviewing and adjusting staffing levels and overtime requirements, and restructuring software agreements and hardware replacement costs. The table below identifies the extent of base budget reductions over the last 5 years: Base Budget Review Reductions ($millions) Property tax supported budgets (preliminary) Total $2.4 $1.8 $1.7 $2.6 $1.7 $ Budget Issue Papers A small number of budget issue papers are being finalized for Some budget issue papers relate to program expansions as recommended through master plans and business plans, while others address legislative/safety related concerns or insufficient staffing levels required to achieve the current level of service. A complete package of budget issue papers will be presented at the November 22, 2017 Budget Committee meeting. A preliminary list of budget issue papers include: Section 2- Page 15 of 18

17 17 17 Paramedic Services master plan implementation GRT business plan implementation Mobility PLUS business plan implementation Reinstate the Waste Management drywall/pallet diversion program Provide additional Sunnyside staff (PSWs, supervisor & staff development coordinator) Additional POA prosecution staff to address increasing workloads Increase funding for Discretionary Benefits 7. Public Engagement Staff has developed a public engagement strategy as outlined in staff report COR-FSD Budget Public Engagement Strategy, dated September 12, The primary goal of this initiative is to provide additional opportunities for members of the public to provide input and feedback during the 2018 budget process. The intent of this planned initiative is to enhance the current policy of providing for public input at the November and December Budget Committee meetings. The strategy will focus on gathering public feedback on where future investments should be made in the community. 8. Budget Schedule Future budget meetings are scheduled as shown in Appendix A. This schedule reflects the approved budget timetable as set out in staff report COR-FSD Budget Process & Timetable, dated June 20, Corporate Strategic Plan: The annual budget incorporates numerous initiatives set out in the Corporate Strategic Plan. Financial Implications: A 1% change in the tax rate results in a $19 annual change to the average residential property owner, based on a residential property assessed at $323,300 in A 1% tax rate increase generates an additional $5 million in tax revenue. Other Department Consultations/Concurrence: All departments and the Waterloo Regional Police Service are involved in the development of the Region of Waterloo Budget Section 2- Page 16 of 18

18 18 18 Attachments: Appendix A 2018 Budget Schedule Prepared By: Cheryl Braan, Manager of Corporate Budgets Craig Dyer, Commissioner, Corporate Services/Chief Financial Officer Approved By: Mike Murray, Chief Administrative Officer Section 2- Page 17 of 18

19 19 19 Appendix A 2018 Budget Schedule PURPOSE OF THE BUDGET COMMITTEE SESSION PLANNED DATE and TIME 2018 Budget Process and Timetable June 20, 2017 Administration and Finance Committee 2018 Budget Overview (following Standing Committees) Preliminary Operating Budget and Capital Program (after Planning & Works Committee) Detailed Budget Review User Rate Operating Budget and Capital Program Tax Supported Operating Budget and Capital Program Budget issue papers GRCA presentation Public Input Session #1 November 22, :00 5:00 p.m. November 22, :00 p.m Budget update (following Standing Committees) Assessment growth Police Services presentation December 5, 2017 (after Planning & Works Committee) Public Input Session #2 December 5, :00 p.m Budget Approval Approval of 2018 Operating budgets and Capital Programs for all programs Approval of 2018 User Rates, Fees and Charges December 13, :00 5:00 p.m. Council 7 p.m Section 2- Page 18 of 18