Appendix A - Operating Budget Overview Appendix B Staffing Changes Overview Appendix C - Capital Budget Overview...

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2 TABLE OF CONTENTS Multi-Year Amendments... 1 Operating Amendments Multi-Year Capital And Ten Year Capital Plan (Including Capital Amendments)... 9 Appendix A - Operating Overview Appendix B Staffing Changes Overview Appendix C - Capital Overview Appendix D - Reserves & Reserve Funds Overview Appendix E - Debt Overview... 38

3 MULTI-YEAR BUDGET AMENDMENTS ON DECEMBER 12, 2017, MUNICIPAL COUNCIL APPROVED THE 2018 ANNUAL BUDGET UPDATE. THIS WAS THE SECOND ANNUAL UPDATE TO THE MULTI-YEAR BUDGET. The average annual increase from rates will remain at 2.8% as approved in the Multi-Year (Table 1). Municipal Council approved a total of 22 budget amendments that were the result of new or changed regulation, new Council direction, and cost or revenue drivers from changes in economic conditions. In order to maintain the 2.8% tax levy increase, Municipal Council approved two added budget amendments to reduce the tax levy increase: savings from the phase out of the vacancy tax rebate program, and 2018 assessment growth revenue in excess of costs to service growth. As a result of the two added budget amendments, the draft tax levy increase of 3.3% for each of 2018 and 2019 was reduced to 2.8% and 3.2%, as approved. Tax levy impacts were the result of operating budget amendments only. All capital budget amendments were accommodated within the capital plan resulting in no impact to the tax levy. A summary of all operating and capital budget amendments are on subsequent pages. Table Multi-Year Operating (Amounts Include Amendments 1-3 & 4-7) Page 1

4 Table Multi-Year Operating (includes all budget amendments approved during the 2018 Annual Update) Average Avg. Annual 2018 Annual Update Annual Rate Payer % Impact 1 % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8% $ 76 (Tax Levy) 536, , , ,551 Cumulative Amendment 2 (418) 1,042 Revised (Tax Levy) 536, , , ,594 Incremental Increase/(Decrease) (418) 1,460 Revised % Increase From Rates 2.5% 2.9% 2.8% 3.2% 2.8% $ 77 Subject to rounding 1. Average rate payer owning a home with an assessed value of $221,000 in 2015 (excludes the Education tax portion). 2. Includes 2018 Assessment Growth revenue allocated to reducing the tax levy. 4.0% 3.0% 2.0% Multi Year 3.2% 2.9% 2.8% 2.5% 2.5% 2.9% 2.9% 2.9% Revised Page 2

5 Operating Amendments Amendment Case #1 New Council Direction London Music Industry Development Office Expenditure Inc/(Dec) Revenue (Inc)/Dec (150) (150) Requested Tax Levy (Cumulative) - - Incremental Increase/(Decrease) - - Rationale: In September 2014, Municipal Council endorsed the London Music Strategy, developed by a volunteer Music Industry Task Force. Municipal Council also approved $300 thousand in funding for a two year pilot to create the London Music Office. The two year pilot will be complete in November On May 30, 2017, as a result of a review of the London Music Industry Initiative Pilot, Municipal Council unanimously approved the recommendation to bring forward a business case during the 2018 Annual Update. To continue the London Music Industry Development Office on a two year temporary basis, gross expenditures of $150 thousand per year are required. A strategic use of the Economic Development Reserve Fund is recommended in 2018 and 2019 resulting in no impact to the tax levy. Amendment Case #2 New Council Direction Councillors' Annual Compensation Expenditure Inc/(Dec) 245 Revenue (Inc)/Dec - Requested Tax Levy (Cumulative) 245 Incremental Increase/(Decrease) 245 Rationale: At its meeting on August 22, 2017, Municipal Council, on the recommendation of the 2016 Council Compensation Review Task Force, resolved that effective the next term of Council the annual compensation for serving as a Ward Councillor be set at the 2016 median full-time employment income for Londoners. Page 3

6 Amendment Case #3 Cost Driver UTRCA 10 Year Environmental Targets Strategic Plan Expenditure Inc/(Dec) Revenue (Inc)/Dec - - Requested Tax Levy (Cumulative) Incremental Increase/(Decrease) Rationale: The UTRCA Board of Directors approved its Environmental Targets Strategic Plan in June This plan proposes the most significant programming change in the Authority s nearly 70 year history. These Environmental Targets are designed to advance achievement of the UTRCA's goals: 1. Protecting people and their property from flooding and erosion; 2. Protecting and improving water quality; 3. Managing and expanding natural areas; and 4. Providing outdoor recreation/education opportunities. In total, $4 million in new funding to support new staff and programs will be required annually to support this work. This new funding is being sought from all four of the UTRCA s traditional revenue streams in the following proportions: senior government funding (28%), municipal funding (28%), user fees (30%) and special contracts (14%). Municipal levy funding is being requested from all 17 member municipalities with a planned four year phase-in ( ). New municipal funding of $179 thousand was approved by Municipal Council on a permanent basis during the 2017 Annual Update, as per the Strategic Plan s proposed budget. Page 4

7 Amendment Case #4 Cost Driver Dundas Place Ongoing Place Management Expenditure Inc/(Dec) Revenue (Inc)/Dec (75) (100) Requested Tax Levy (Cumulative) Incremental Increase/(Decrease) Rationale: The Dundas Place project aims to transform Dundas Street between Wellington Street and Thames River into a flexible street, to become a prominent public destination and programming space for Londoners and visitors. While the project will be transformational for the Downtown, a three-pronged "place management" approach, integrating maintenance, security, and activation, will be critical to the successful operation of this space over time. Gross expenditures of $75 thousand and $475 thousand are required in 2018 and 2019 respectively for costs associated with this three-pronged approach, as well as management of the space, partially offset with a strategic use of the Economic Development Reserve Fund in 2018 ($75 thousand) and 2019 ($100 thousand). Amendment Case #5 Cost Driver Elimination of the Annual Payment to the Stiller Centre Expenditure Inc/(Dec) (224) (228) Revenue (Inc)/Dec - - Requested Tax Levy (Cumulative) (224) (228) Incremental Increase/(Decrease) (224) (4) Rationale: The City of London (the City) has an agreement with University of Western Ontario Research and Development Park (Western Research Park) for the City to provide the Stiller Centre for Technology Commercialization with an annual contribution from June 30, 2010 through April 20, In September 2017, Western Research Park provided the City with formal notice that they wished to terminate the agreement effective April 30, 2018, as Stiller Centre no longer required the annual subsidy from the City. Western Research Park wishes to extend its sincere appreciation to the City for their long-standing and unwavering commitment to the Stiller Centre for Technology Commercialization, its vision and its mission. Page 5

8 Amendment Case #6 Revenue Driver Increased Ontario Works Administration Subsidy Expenditure Inc/(Dec) - - Revenue (Inc)/Dec (600) (600) Requested Tax Levy (Cumulative) (600) (600) Incremental Increase/(Decrease) (600) - Rationale: London s share of Ontario Works administration subsidy increased for 2017 and 2018 as a result of a higher average portion of total provincial caseload from October 2014 to September This increased subsidy exceeds the amount that was anticipated and built into the approved Multi-Year. Amendment Case #7 New Regulation Proposed Minimum Wage Increases Expenditure Inc/(Dec) 1,334 1,907 Revenue (Inc)/Dec (131) (183) Requested Tax Levy (Cumulative) 1,203 1,724 Incremental Increase/(Decrease) 1, Rationale: The Ontario government announced its intention to increase the minimum wage from $11.60/hour to $14.00/hour effective January 1, 2018 (20.7% increase) and $15.00/hour effective January 1, 2019 (7.1% increase). As of September 2017, the proposed legislation, Bill Fair Workplaces, Better Jobs Act, 2017, is currently draft and the government is engaging in consultation throughout the Province to obtain feedback on the proposed increases to the minimum wage from employees, employers and other interested parties. An operating budget increase is recommended to reflect the proposed increase, partially offset by limited user fee increases. Page 6

9 Amendment Case #8 "In Camera" Confidential Matter "In Camera" Expenditure Inc/(Dec) 1,455 2,485 Revenue (Inc)/Dec - - Requested Tax Levy (Cumulative) 1,455 2,485 Incremental Increase/(Decrease) 1,455 1,030 Rationale: A matter pertaining to labour relations and employee negotiations, advice or recommendations of officers and employees of the Corporation including communications necessary for that purpose, and for the purpose of providing instructions and directions to officers and employees of the Corporation. Amendment Case #20 New Council Direction Reduced Rate Transit Pass for Youth (Ages 13 17) Amendment 3A: Bulk Purchase and Re sale of Bus Passes at $52/month Pilot Project Expenditure Inc/(Dec) ,210 Revenue (Inc)/Dec (167) - (737) (500) - (2,210) Requested Tax Levy (Cumulative) - - Incremental Increase/(Decrease) - - Rationale: The City will negotiate an agreement with the London Transit Commission (LTC) to purchase bus passes in bulk at a negotiated rate, and then re-sell them to youth ages at a rate of $52/month, representing a 36% savings from the cost of an adult monthly pass. The 22-month pilot project will begin September 1, An expenditure range has been provided for this amendment, as the total cost for the program will vary greatly depending on uptake/participation of eligible youth and the negotiated rate for bulk purchases from LTC. There will be no net tax levy increase from rates as a result of this amendment. The cost of this pilot program will be offset by Operating Surplus and, if required, through a drawdown from contingency reserves. Page 7

10 Amendment (Added) New Council Direction Phasing out of Vacancy Tax Rebate Expenditure Inc/(Dec) (895) (1,810) Revenue (Inc)/Dec - - Requested Tax Levy (Cumulative) (895) (1,810) Incremental Increase/(Decrease) (895) (915) Rationale: Estimated savings from the phasing out of the vacancy tax rebate of $895,000 in 2018 and $915,000 in 2019 (incremental) be applied to reduce the tax levy. Amendment (Added) New Council Direction Assessment Growth Expenditure Inc/(Dec) - - Revenue (Inc)/Dec (1,538) (1,538) Requested Tax Levy (Cumulative) (1,538) (1,538) Incremental Increase/(Decrease) (1,538) - Rationale: Notwithstanding the Assessment Growth Policy, $1,538,429 which represents the estimated assessment growth revenue in excess of costs to service growth be allocated to reduce the tax levy. Page 8

11 Multi-Year Capital and Ten Year Capital Plan (Including Capital Amendments) Capital Summary Multi-Year Total Forecast Capital Plan Total 213, , , , ,841 1,314,346 2,137,187 Total Revised 213, , , , ,814 1,373,619 2,207,433 Total Capital Expense Increase/(Decrease) (8,159) 19,132 10,973 59,273 70,246 Sources of Financing Capital Levy (CL) Debenture (D) - - (3,800) 8,387 4,587 27,237 31,824 Reserve Fund (RF) ,707 6,234 7,941 Other (O) Non-tax Supported (NTS) - - (5,211) 9,890 4,679 25,802 30,481 Total Revenue Increase/(Decrease) - - (8,159) 19,132 10,973 59,273 70,246 Tax Levy Impact Subject to rounding Note 1: Includes the approved budget amendments (4, 9-19) supported by budget amendment cases and budget adjustments that do not require a budget amendment case since there is no impact to Page 9

12 Capital by Classification Multi-Year Total Forecast Capital Plan Lifecycle Renewal Capital Lifecycle Renewal 86,942 77,707 69,856 77, , , ,321 Lifecycle Renewal Revised 1 86,942 77,707 70,783 78, , , ,361 Increase/(Decrease) ,857 2,183 4,040 Growth Capital Growth 118, ,819 80,841 86, , ,106 1,013,750 Growth Revised 1 118, ,819 78, , , ,473 1,079,099 Increase/(Decrease) - - (2,640) 17,622 14,982 50,367 65,349 Service Improvement Capital Service Improvement 7,804 60,995 16,798 9,455 95, , ,116 Service Improvement Revised 1 7,804 60,995 10,352 10,035 89, , ,973 Increase/(Decrease) - - (6,446) 580 (5,866) 6, Total Capital Expense Increase/(Decrease) - - (8,159) 19,132 10,973 59,273 70,246 Subject to rounding Note 1: Includes the approved budget amendments (4, 9-19) supported by budget amendment cases and budget adjustments that do not require a budget amendment case since there is no impact to Page 10

13 Lifecycle Renewal Capital Multi-Year Total Forecast Capital Plan Lifecycle Renewal 86,942 77,707 69,856 77, , , ,321 Lifecycle Renewal Revised 86,942 77,707 70,783 78, , , ,361 Increase/(Decrease) ,857 2,183 4,040 Sources of Financing Capital Levy (CL) ,269 2,141 Debenture (D) (788) (403) (1,191) (3,820) (5,011) Reserve Fund (RF) ,707 4,234 5,941 Other (O) Non-tax Supported (NTS) Total Revenue ,857 2,183 4,040 Tax Levy Impact Amendments Multi-Year Amendments (Business Cases Submitted) Multi-Year Total Forecast Capital Plan Amendment Case #9 Invasive Species Management Strategy Rationale: Increased funding for invasive species management and removal. Source of Financing: Woodland Acquisition & Mgmt. RF RF RF Amendment Case #10 London Police Service - Capital Plan Changes Rationale: Changes to the London Police Service capital plan to address increased funding for replacement vehicles and information technology storage server, partially offset by a reduction from a change in equipment requirements. Source of Financing: Capital Levy, Police Vehicle Replac. RF RF RF CL, RF Amendment Case #11 Exterior Lighting Redesign & Replacement for all London & Middlesex Housing Corporation (LMHC) Sites Rationale: Replacement and redesign of exterior lighting at LMHC sites is required to replace these systems which are at, or ,000-1,000 approaching, the end of their useful lives, improve efficiency of lighting system components and to improve site safety. Source of Financing: Public Housing Major Upgrades RF & Other RF, O RF, O Page 11

14 Lifecycle Renewal Capital (continued) Multi-Year Total Forecast Capital Plan Total Amendments (Inc/(Dec)) , , Amendments - Business Cases Not Required (Inc/(Dec)) 1,609 1,609 Total Lifecycle Renewal Amendments (Inc/(Dec)) ,857 2,183 4, Amendments (Business Cases Not Required) Total London Convention Centre Capital Projects Realigning Rationale: Refinements to the capital plan resulting in a small increase for event furniture and fixtures. (500) Source of Financing: Convention Centre RF RF RF Parking Technology System Rationale: Additional funding required in 2022 to address lifecycle renewal requirements of the parking technology system. Source of Financing: Non-Tax Supported NTS Vehicle and Equipment Replacements Rationale: Additional funding required for replacement of vehicle and equipment based on ongoing market evaluations, cost experience and annually adjusted replacement value research (446) ,089 Source of Financing: Vehicle & Equipment RF RF RF RF RF RF RF Total Lifecycle Renewal Amendments (Inc/(Dec)) (56) 1,198 1,609 Page 12

15 Amendments Total Growth 118, ,819 80,841 86, , ,106 1,013,750 Growth Revised 118, ,819 78, , , ,473 1,079,099 Increase/(Decrease) - - (2,640) 17,622 14,982 50,367 65,349 Sources of Financing Capital Levy (CL) (23) Debenture (D) 2,988 7,760 10,748 25,036 35,784 Reserve Fund (RF) Other (O) Non-tax Supported (NTS) (5,605) 9,815 4,210 25,302 29,512 Total Revenue - - (2,640) 17,622 14,982 50,367 65,349 Tax Levy Impact Multi-Year Amendments (Business Cases Submitted) Multi-Year Total Forecast Amendment Case #12 Realignment of Growth Parks Projects Rationale: Changes to the timing of various parks projects to align with changes in timing of subdivision development, noting that there is no additional funding requirement to the 10 year capital plan. Growth Capital Multi-Year Forecast (1,617) 807 (810) Source of Financing: Capital Levy, Debt, Non-Tax Supported CL, D, NTS CL, D, NTS CL, D, NTS Capital Plan Capital Plan Amendment Case #13 Deferral of New Fire Station 15 Rationale: Deferral of new fire station to be located in the southeast area of the City from 2020 to 2022, as well as increased funding to (200) (200) address higher costs resulting from recent trends in facility construction pricing. Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS Page 13

16 Growth Capital (continued) Multi-Year Total Forecast Capital Plan Amendments Amendment Case #14 Adelaide Street - CPR Grade Separation Rationale: Project previously identified beyond the 10 year plan is being advanced to align with the rapid transit system plan. 7,100 12,800 19,900 40,000 59,900 Construction is now planned to occur as early as Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS Amendment Case #15 Western Road Widening - Platts Lane to Oxford Street Rationale: Additional funding required due to project modifications 3,500 3,500-3,500 resulting from the detailed design. Source of Financing: Debt, Non-Tax Supported D, NTS Amendment Case #16 Realignment of Growth Transportation Projects Rationale: Changes to the timing of various Transportation projects resulting in no additional funding requirement to the 10 year capital (11,623) 4,215 (7,408) 7,408 - plan. Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS Total Amendments (Inc/(Dec)) - - (2,640) 17,622 14,982 48,829 63, Amendments - Business Cases Not Required (Inc/(Dec)) 1,538 1,538 Total Growth Amendments (Inc/(Dec)) - - (2,640) 17,622 14,982 50,367 65,349 Page 14

17 Growth Capital (continued) Amendments (Business Cases Not Required) Total Northwest Branch Library Update Rationale: Increased funding to address higher costs from recent 1,232 1,232 trends in facility construction pricing. Source of Financing: Debt, Non-Tax Supported D, NTS Additional Funding For New Spray Pads Rationale: Increased funding to address higher costs from recent trends in construction pricing Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS D, NTS Realignment of Growth Transportation Projects Only Impacting Rationale: Changes to the timing of various Transportation projects resulting in no additional funding requirement to the 10 year capital plan (525) (290) - Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS D, NTS Total Growth Amendments (Inc/(Dec)) 1, (428) (235) ,538 Page 15

18 Service Improvement Capital Multi-Year Total Forecast Capital Plan Service Improvement 7,804 60,995 16,798 9,455 95, , ,116 Service Improvement Revised 7,804 60,995 10,352 10,035 89, , ,973 Increase/(Decrease) - - (6,446) 580 (5,866) 6, Sources of Financing Capital Levy (CL) (446) (450) (896) (1,298) (2,194) Debenture (D) (6,000) 1,030 (4,970) 6,021 1,051 Reserve Fund (RF) - 2,000 2,000 Other (O) Non-tax Supported (NTS) Total Revenue - - (6,446) 580 (5,866) 6, Tax Levy Impact Amendments Multi-Year Amendments (Business Cases Submitted) Multi-Year Capital Total Forecast Plan Amendment Case #4 Dundas Place Field House Rationale: Increased funding for a physical indoor space ( field house ) accessible on Dundas Place required to support the day-today operations of the Dundas Flexible Street. Source of Financing: Debt D Amendment Case #17 Farquharson, Glen Cairn & Silverwoods Arenas Decommissioning Rationale: Increased funding to address higher costs from recent trends in facility construction pricing Source of Financing: Capital Levy CL CL Page 16

19 Service Improvement Capital (continued) Multi-Year Total Forecast Capital Plan Amendments Amendment Case #18 Relocation of Existing Resources to New Fire Station 16 Rationale: Deferral of new fire station to be located in the Wharncliffe area south of Springbank Dr. toward Commissioners Rd. W. from 2020 to 2022, as well as increased funding to address (500) 300 (200) higher costs resulting from recent trends in facility construction pricing. Source of Financing: Capital Levy, Debt CL D D Amendment Case #19 Western Road & Philip Aziz Ave. Improvements Deferred Rationale: Road improvements at Western Road and Philip Aziz deferred from 2018 to 2020 to enable coordination with Rapid (6,000) (6,000) 6,000 - Transit improvements that are in development through the Shift Environmental Assessment. Source of Financing: Debt D D Total Amendments (Inc/(Dec)) - - (6,446) 580 (5,866) 6, Amendments - Business Cases Not Required (Inc/(Dec)) - - Total Service Improvement Amendments (Inc/(Dec)) - - (6,446) 580 (5,866) 6, Amendments (Business Cases Not Required) Total Replacement & Relocation of Fire Training Tower Rationale: Project has been adjusted to reflect the timing of when funds will be required for design and construction (construction (1,250) (250) (2,000) (1,196) 4,696 - planned for 2024), noting that no additional funding is required. Source of Financing: Capital Levy, Debt D D CL, D CL, D CL, D Total Service Improvement Amendments (Inc/(Dec)) (1,250) (250) (2,000) (1,196) 4, Page 17

20 APPENDIX A OPERATING BUDGET OVERVIEW Page 18

21 OPERATING BUDGET OVERVIEW 2018 ANNUAL BUDGET UPDATE (AS APPROVED) Operating Average % Expense Expense Expense Expense Inc/(Dec) 4 % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8% 1 840, , , , , , , ,551 Cumulative Amendment 2&3 2,077 (418) 3,613 1,042 Revised 840, , , , , , , ,594 Revised % Increase From Rates 2.5% 2.9% 2.8% 3.2% 2.8% Subject to rounding Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Includes 2018 assessment growth revenue allocated to reducing the tax levy. 3. Excludes expenditure impact of budget amendment #20 - Reduced Rate Transit Pass for Youth: Ages ($0 net tax levy impact). 4. Represents the average annual percent increase from rates. Page 19

22 SERVICE OPERATING BUDGET OVERVIEW 2018 ANNUAL BUDGET UPDATE (AS APPROVED) Annual Update Amended 2019 Amended Revised Inc/(Dec) Culture Services 97,929 23,918 24,326 24,671 25,014 97,929 - Economic Prosperity 47,712 11,845 11,919 11,739 11,756 47,260 (452) Environmental Services 87,007 20,693 21,584 22,319 22,983 87, Parks, Recreation & Neighbourhood Services 133,483 31,979 33,372 33,854 34, ,483 - Planning & Development Services 27,817 6,886 6,874 7,033 7,399 28, Protective Services 672, , , , , ,118 - Social & Health Services 269,284 67,829 67,830 65,645 66, ,084 (1,200) Transportation Services 267,524 64,056 66,392 67,857 69, ,524 - Corporate, Operational & Council Services 239,902 56,662 61,131 61,244 61, , Financial Management 413,075 93,377 96, , , ,237 4,162 Tax Levy Reduction from Assessment Growth (1,538) (1,538) (3,077) (3,077) PROPERTY TAX LEVY SUPPORTED BUDGET 2,255, , , , ,594 2,256, Subject to rounding Notes: 1. Amounts reported include housekeeping budget adjustments. Page 20

23 SERVICE OPERATING BUDGET OVERVIEW 2018 ANNUAL BUDGET UPDATE (AS APPROVED) Annual Update Amended 2019 Amended Revised CULTURE SERVICES Centennial Hall Arts, Culture & Heritage Advisory & Funding 2 8,850 2,172 2,212 2,218 2,248 8,850 - Museum London 6,706 1,635 1,665 1,690 1,716 6,706 - Eldon House 1, ,126 - Heritage London Public Library 79,844 19,518 19,835 20,116 20,375 79,844 - TOTAL CULTURE SERVICES 97,929 23,918 24,326 24,671 25,014 97,929 - ECONOMIC PROSPERITY Business Attraction & Retention 3 36,321 9,069 9,078 8,860 8,862 35,869 (452) Community Improvement / BIA London Convention Centre 2, ,432 - Tourism London 8,025 1,961 1,998 2,028 2,039 8,025 - Covent Garden Market TOTAL ECONOMIC PROSPERITY 47,712 11,845 11,919 11,739 11,756 47,260 (452) Subject to rounding Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Amounts reported include the impacts of budget amendment #1 - London Music Industry Development Office. 3. Amounts reported include the impacts of budget amendment #5 - Elimination of the Annual Payment to the Stiller Centre Inc/(Dec) Page 21

24 SERVICE OPERATING BUDGET OVERVIEW 2018 ANNUAL BUDGET UPDATE (AS APPROVED) Annual Update Amended 2019 Amended Revised Inc/(Dec) ENVIRONMENTAL SERVICES Kettle Creek Conservation Authority 1, ,938 - Lower Thames Valley Conservation Authority Upper Thames River Conservation Authority 2 12,782 2,926 3,240 3,467 3,720 13, Environmental Action Programs & Reporting 3, ,101 - Garbage Recycling & Composting 68,542 16,412 16,942 17,408 17,780 68,542 - TOTAL ENVIRONMENTAL SERVICES 87,007 20,693 21,584 22,319 22,983 87, PARKS, RECREATION & NEIGHBOURHOOD SERVICES Neighbourhood & Recreation Services 81,213 19,445 20,277 20,609 20,882 81,213 - Parks & Urban Forestry 52,270 12,535 13,096 13,245 13,395 52,270 - TOTAL PARKS, RECREATION & NEIGHBOURHOOD SERVICES 133,483 31,979 33,372 33,854 34, ,483 - PLANNING & DEVELOPMENT SERVICES Building Approvals (3,381) (725) (910) (884) (862) (3,381) - Planning Services 3 14,115 3,421 3,517 3,586 3,965 14, Development Services 17,083 4,189 4,267 4,331 4,296 17,083 - TOTAL PLANNING & DEVELOPMENT SERVICES 27,817 6,886 6,874 7,033 7,399 28, Subject to rounding Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Amounts reported include the impacts of budget amendment #3 - UTRCA 10 Year Environmental Targets Strategic Plan. 3. Amounts reported include the impacts of budget amendment #4 - Dundas Place - Ongoing Place Management. Page 22

25 SERVICE OPERATING BUDGET OVERVIEW 2018 ANNUAL BUDGET UPDATE (AS APPROVED) Annual Update Amended 2019 Amended Revised Inc/(Dec) PROTECTIVE SERVICES Animal Services 7,046 1,708 1,740 1,780 1,819 7,046 - By-Law Enforcement & Property Standards 5,285 1,239 1,314 1,391 1,341 5,285 - Corporate Security & Emergency Management 9,443 2,228 2,377 2,408 2,430 9,443 - Fire Services 237,824 56,047 59,667 59,764 62, ,824 - London Police Services 412,520 97, , , , ,520 - TOTAL PROTECTIVE SERVICES 672, , , , , ,118 - SOCIAL & HEALTH SERVICES Housing Services 46,736 11,837 11,779 11,598 11,523 46,736 - Housing Development Corporation 9,594 2,552 2,481 2,278 2,283 9,594 - London & Middlesex Housing Corporation 38,877 8,992 9,501 9,944 10,440 38,877 - Long Term Care 20,696 5,030 5,147 5,218 5,301 20,696 - Land Ambulance 57,356 13,219 14,427 14,742 14,967 57,356 - Middlesex-London Health Unit 24,380 6,095 6,095 6,095 6,095 24,380 - Social & Community Support Services 2 71,646 20,105 18,401 15,770 16,170 70,446 (1,200) TOTAL SOCIAL & HEALTH SERVICES 269,284 67,829 67,830 65,645 66, ,084 (1,200) Subject to rounding Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Amounts reported include the impacts of budget amendment #6 - Increased Ontario Works Administration Subsidy and budget amendment #20 - Reduced Rate Transit Pass for Youth (Ages 13-17). Page 23

26 SERVICE OPERATING BUDGET OVERVIEW 2018 ANNUAL BUDGET UPDATE (AS APPROVED) Annual Update Amended 2019 Amended Revised Inc/(Dec) TRANSPORTATION SERVICES Parking (12,771) (3,314) (3,237) (3,138) (3,081) (12,771) - Public Transit (LTC) 120,927 28,962 29,972 30,731 31, ,927 - Roadways 159,368 38,409 39,658 40,264 41, ,368 - TOTAL TRANSPORTATION SERVICES 267,524 64,056 66,392 67,857 69, ,524 - CORPORATE, OPERATIONAL & COUNCIL SERVICES Corporate Services 216,837 50,781 54,211 55,625 56, ,837 - Corporate Planning & Administration 5,493 2,195 2, (37) 5,493 - Council Services 2 13,764 3,409 3,440 3,454 3,705 14, Public Support Services 3, ,101 1,210 1,221 3,808 - TOTAL CORPORATE, OPERATIONAL & COUNCIL SERVICES 239,902 56,662 61,131 61,244 61, , Subject to rounding Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Amounts reported include the impacts of budget amendment #2 - Councillors' Annual Compensation. Page 24

27 SERVICE OPERATING BUDGET OVERVIEW 2018 ANNUAL BUDGET UPDATE (AS APPROVED) Annual Update Amended 2019 Amended Revised Inc/(Dec) FINANCIAL MANAGEMENT Corporate Financing Capital Financing Capital Levy 164,834 37,271 40,760 42,176 44, ,834 - Debt Servicing 152,800 37,575 37,255 38,256 39, ,800 - Contribution to Capital Reserve Funds 88,140 18,807 21,244 23,444 24,644 88,140 - Other Related Financing Contingencies 2&3 65,440 13,613 12,116 18,911 25,275 69,916 4,476 Other Corporate Revenues & Expenditures 2 (81,923) (19,832) (20,899) (20,210) (21,297) (82,237) (314) Finance 23,784 5,943 5,935 5,968 5,938 23,784 - TOTAL FINANCIAL MANAGEMENT 413,075 93,377 96, , , ,237 4,162 Subject to rounding Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Amounts reported include the impacts of budget amendment #7 - Proposed Minimum Wage Increases. 3. Amounts reported include the impacts of budget amendment #8 - Confidential Matter - "In-Camera" and budget amendment (added) - Phasing out of Vacancy Tax Rebate. Page 25

28 APPENDIX B STAFFING CHANGES OVERVIEW Page 26

29 Amendments STAFFING CHANGES OVERVIEW 2018 ANNUAL BUDGET UPDATE Full-Time Employees (FT) Full-Time Equivalents (FTE) Staffing Changes Total Staffing 1 3,676 3,728 3,736 3,743 4, , , ,109.2 Amendment 1 - London Music Industry Development Office Rationale: A position is requested to continue the London Music Industry Office on a two year temporary basis Amendment 3 - Upper Thames River Conservation Authority (UTRCA) Rationale: These positions are required to fulfill the newly adopted UTRCA Environmental Targets Strategic Plan Amendment 4 - Dundas Place - Ongoing Place Management Rationale: A temporary position is requested to support the successful operation of Dundas Place Cumulative Increase - Amendments Note 1: Total Staffing numbers include positions approved as part of the multi-year budget, 2017 approved Assessment Growth business cases and housekeeping budget adjustments. Page 27

30 Other Staffing Changes STAFFING CHANGES OVERVIEW (CONTINUED) 2018 ANNUAL BUDGET UPDATE Full-Time Employees (FT) Other Staffing Changes The following staffing changes have been accommodated in the multi-year budget with no net budget impact: Full-Time Equivalents (FTE) Building Approvals 2 Rationale: Staffing changes funded through building permit revenues required for the following: To input permit applications and other support functions; To perform fire protection reviews and inspections transferred from Fire to Building Approvals (2 positions); and To ensure Building Approvals can meet Provincially legislated time frames for building inspections. Municipal Law Enforcement 2 Rationale: These positions are required to support property standards inspections. Additional revenue from the initial applications fee will support the cost of these positions. Homeless Prevention 2 Rationale: This position is funded by Provincial and Federal funding for Homeless Prevention through 2019/20. This position will assist with the effective implementation of the Homeless Prevention Implementation Plan approved by Council. Information Technology Services (ITS) 2 Rationale: These positions are required to support Database Administration and Computing Infrastructure & Data functions. Funding to support these positions is accomodated within the ITS existing budget. Facilities - Energy Management Rationale: This position is required to review utility consumption data and complete other energy management related work. It will be funded through the Embedded Energy Manager Incentive Program. Cumulative Increase - Other Staffing Changes Cumulative Increase - Amendments & Other Staffing Changes Revised Staffing Total 3,676 3,728 3,748 3,757 4, , , ,119.9 Incremental Increase - Amendments & Other Staffing Changes Note 2: FTE staffing changes are less than FT because a portion of the FTE was previously approved. Page 28

31 APPENDIX C CAPITAL BUDGET OVERVIEW Page 29

32 CAPITAL BUDGET OVERVIEW WITH FORECAST FOR ANNUAL BUDGET UPDATE (AS APPROVED) CAPITAL BUDGET BY CLASSIFICATION Classification Annual Update 2018 Amended 2019 Amended Revised Increase/ (Decrease) Revised Forecast Increase/ (Decrease) Total Revised Ten Year Plan Lifecycle Renewal 86,942 77,707 70,783 78, ,002 1, ,359 2, ,361 Growth 118, ,819 78, , ,626 14, ,473 50,367 1,079,099 Service Improvement 7,804 60,995 10,352 10,035 89,186 (5,866) 184,787 6, ,973 Total Expenditures , , , , ,814 10,973 1,373,619 59,273 2,207,433 Subject to rounding Notes: 1. Amounts reported in the 2016 and 2017 Capital include housekeeping budget adjustments. 2. The 2016 to 2025 Capital includes Non-TCA expenditures that will not result in the creation of a tangible asset (having physical substance). Non-TCA expenditures are reported annually through the Financial Statement reporting process. 3. Includes the approved budget amendments (4, 9-19) supported by budget amendment cases and budget adjustments that do not require a budget amendment case since there is no impact to Page 30

33 CAPITAL BUDGET BY SERVICE PROGRAM Service Program CAPITAL BUDGET OVERVIEW WITH FORECAST FOR ANNUAL BUDGET UPDATE (AS APPROVED) Annual Update 2018 Amended 2019 Amended Revised Increase/ (Decrease) Revised Forecast Increase/ (Decrease) Total Revised Ten Year Plan Culture Services 4,638 2,800 2,137 6,540 16,115-17,662 1,232 33,777 Economic Prosperity 6,746 6,305 10,973 6,421 30,445-53, ,438 Environmental Services 6,248 2, ,755 14,333-64,730-79,063 Parks, Recreation & Neighbourhood Services Planning & Development Services 42,881 29,461 26,144 24, ,994 (55) 96,240 1, ,234 2,328 1, , ,125-8,802 Protective Services 8,822 4,575 4,965 5,649 24,011 (243) 99,002 1, ,013 Social & Health Services 2,608 5,108 3,458 3,758 14,932 1,000 22,098-37,030 Transportation Services 127, ,212 98, , ,745 9, ,853 53,908 1,490,598 Corporate, Operational & Council Services & Financial Management 11,653 16,076 11,666 12,167 51,562-79,916 1, ,478 Total Expenditures , , , , ,814 10,973 1,373,619 59,273 2,207,433 Subject to rounding Notes: 1. Amounts reported in the 2016 and 2017 Capital include housekeeping budget adjustments. 2. The 2016 to 2025 Capital includes Non-TCA expenditures that will not result in the creation of a tangible asset (having physical substance). Non-TCA expenditures are reported annually through the Financial Statement reporting process. 3. Includes the approved budget amendments (4, 9-19) supported by budget amendment cases and budget adjustments that do not require a budget amendment case since there is no impact to Page 31

34 CAPITAL BUDGET BY SOURCE OF FINANCING Source of Financing Tax Supported CAPITAL BUDGET OVERVIEW WITH FORECAST FOR ANNUAL BUDGET UPDATE (AS APPROVED) Annual Update 2018 Amended 2019 Amended Revised Increase/ (Decrease) Revised Forecast Increase/ (Decrease) Total Revised Ten Year Plan Capital Levy 34,841 37,229 39,921 42, , , ,277 Debenture 31,246 40,159 22,256 29, ,692 4, ,388 27, ,080 Reserve Fund 31,169 25,094 27,033 27, ,179 1, ,003 6, ,182 Other , , ,111 Sub-total Tax Supported 98, ,509 89,460 99, ,344 6, ,306 33,471 1,060,650 Non-Tax Supported Debenture 22,023 40,194 14,317 28, ,021 (11,407) 135,063 25, ,084 Reserve Fund 33,126 30,837 40,885 43, ,135 14, ,027 (5,268) 295,162 Federal Gas Tax 16,479 12,691 12,705 18,321 60,196 (1,146) 110, ,098 Provincial Grants 2,070 35, ,589-15,102-54,691 Senior Government 29,636 29, , , ,344 Other 12,301 6,353 1,227 2,060 21,941 3,135 6,463 6,000 28,404 Sub-total Non-Tax Supported 115, ,012 69,876 92, ,470 4, ,313 25,802 1,146,783 Total Sources of Financing 2 213, , , , ,814 10,973 1,373,619 59,273 2,207,433 Subject to rounding Notes: 1. Amounts reported in the 2016 and 2017 Capital include housekeeping budget adjustments. 2. Includes the approved budget amendments (4, 9-19) supported by budget amendment cases and budget adjustments that do not require a budget amendment case since there is no impact to Page 32

35 CAPITAL BUDGET FORECAST 2018 ANNUAL BUDGET UPDATE Classification / Source of Financing 2026 Forecast 2027 Forecast Rolling Capital Plan CAPITAL BUDGET BY CLASSIFICATION Lifecycle Renewal 97,920 94, ,784 Growth 65,196 37, ,476 Service Improvement 24,125 29, ,424 Total Expenditures 187, ,255 2,073,684 CAPITAL BUDGET BY SOURCE OF FINANCING Tax Supported Capital Levy 57,267 59, ,869 Debenture 23,641 22, ,420 Reserve Fund 30,369 27, ,265 Other Sub-total Tax Supported 111, ,476 1,070,804 Non-Tax Supported Debenture 47,262 10, ,941 Reserve Fund 12,232 19, ,773 Federal Gas Tax 13,849 19, ,781 Provincial Grants 2,606 2,606 21,848 Senior Government ,757 Other ,780 Sub-total Non-Tax Supported 75,964 51,779 1,002,880 Total Sources of Financing 187, ,255 2,073,684 Subject to rounding Page 33

36 CAPITAL BUDGET FORECAST 2018 ANNUAL BUDGET UPDATE The following section highlights major capital works contained within the periods of the rolling 10 year capital plan: Major Capital Works In Forecast 2027 Forecast LIFECYCLE RENEWAL Recreation Facilities - Lifecycle Renewal Program 3,600 3,600 Fire Vehicle Replacement Program 3, Bus Replacement Program 9,455 9,455 Annual Road Repair Program - Arterial Roads and Secondary Collector Streets 26,939 27,412 Traffic Signal and Street Light Maintenance 8,123 8,371 GROWTH Huron Street Widening (Highbury to Clarke) 13,275 - Colonel Talbot Rd. Reconstruction (300 meters South of Southdale to Kilbourne) 8,905 - Sanatorium Rd. Widening (Riverside to Commissioners) 12,134 - Southdale Rd. West Widening (Colonel Talbot to Farnham) 13,754 - Adelaide Street Improvements (Fanshawe Park to Hamilton) - 16,894 SERVICE IMPROVEMENT London Police Service Facility Expansion 20,000 20,000 Public Housing Regeneration 1,000 1,000 Page 34

37 Multi-Year 2026 Total Multi-Year Total Multi-Year Forecast Forecast Forecast Total Expenditures 4, , , ,182 (107,142) 223, ,818 4, , , ,000 Sources of Financing Municipal Contribution: RAPID TRANSIT BUDGET On July 26, 2017, Municipal Council approved the Shift Rapid Transit Master Plan and Business Case, increasing the total budget to $500 million. Previously the total budget was $380 million. The increase is to be supported with additional funding from the Federal and Provincial governments. The table below shows the adjustments to the Rapid Transit capital budget, including both the budget increase and timing changes resulting from the Master Plan. Expenditures and Sources of Financing Adjustments Increase/(Decrease) Revised Capital Levy 648 7,807 3,274 11, ,807 3,274 11,729 Development Charges 1 3,385 81,455 33, , ,385 81,455 33, ,465 Federal/Provincial ,524 73, ,988 (107,142) 223, , , , ,806 Total Sources of Financing 4, , , ,182 (107,142) 223, ,818 4, , , ,000 Note 1: New provincial regulations on Development Charges recovery for transit projects may change the growth/non-growth splits on the municipal contribution. A consultant's study on this issue will be completed in Total Page 35

38 APPENDIX D RESERVES & RESERVE FUNDS OVERVIEW Page 36

39 RESERVES & RESERVE FUNDS OVERVIEW 2018 ANNUAL BUDGET UPDATE Reserves & Reserve Funds Plan Forecast Revised Projected Balance - Obligatory Reserve Funds City Services: City Services reserve funds are legislated by the Development Charges (DC) Act, 1997, as amended; a separate reserve fund exists for each service upon which a DC is levied; contributions fund future growth related projects. Parkland: Parkland Reserve Fund is legislated by the Planning Act, R.SO. 1990, as amended; monies standing in the reserve fund represent contributions from developers for payments in lieu of providing parkland and the reserve fund is restricted to supporting related park or other recreational purposes ,995 35,211 30,184 19,803 18,440 19,578 19,375 21,743 23,434 19,054 2,793 2,126 2,341 2,671 3,108 3,452 3,903 4,261 4,726 5,114 Total Obligatory 83,788 37,337 32,525 22,474 21,548 23,030 23,278 26,004 28,160 24,168 Revised Projected Balance - City-Owned Reserve & Reserve Fund Categories Capital Asset Renewal & Replacement: Established to provide funding for the repair and maintenance of existing 112,511 69,683 75,272 83,496 82,166 96, , , , ,286 City assets to ensure city-owned assets do not deteriorate over time. Capital Asset Growth: Established to provide funding to new capital initiatives while allowing the City to stabilize the cost of purchasing major capital assets by spreading 16,024 10,536 10,955 13,364 13,616 11,873 8,740 6,708 6,208 7,005 the cost over multiple years. Specific Projects & New Initiatives: Planned savings within the budget to fund projects or expenses either identified at the time the reserve or reserve fund is set-up or after, which 146, , , , , , , , , ,393 allows the City to save for planned or unanticipated projects or expenses that may arise and do not have another funding source. Contingencies/Stabilization & Risk Management: Designed to fund future obligations which are based on calculated estimates and to mitigate unforeseen events or one-time unanticipated expenses. 117, , , , , , , , , ,379 Total City-Owned 392, , , , , , , , , ,063 Subject to rounding Amounts reported include the approved 2018 Annual Update amendments. Page 37

40 APPENDIX E DEBT OVERVIEW Page 38

41 DEBT OVERVIEW 2018 ANNUAL BUDGET UPDATE Debt Servicing Expenditures Forecast ,575 37,255 38,256 39,715 41,187 41,966 42,784 43,037 43,037 43,037 Total Amendments Revised 37,575 37,255 38,256 39,715 41,187 41,966 42,784 43,037 43,037 43,037 Revised - Other Corporate 2 25,375 26,646 27,674 30,263 39,139 40,051 39,195 37,710 42,170 44,507 Revised - Total Corporate 62,950 63,901 65,930 69,978 80,326 82,017 81,979 80,747 85,207 87,544 Potential Debt Levels Forecast (Issued + Authorized) Revised 1 270, , , , , , , , , ,916 Revised - Other Corporate 2 304, , , , , , , , , ,242 Revised - Total Corporate 575, , , , , , , , , ,158 Subject to rounding Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Other Corporate includes Wastewater, Water and Reserve Fund Supported s. Page 39