2016 Budget Highlights

Transcription

1 Approved 2016 Budget Highlights (Budget Book 1 of 4) March 2016

2 Memorandum Corporate Services, Financial Services Division 500 George St North Peterborough Ontario K9H 3R9 To: From: Dear Reader Sandra Clancy, Director of Corporate Services Date: March 10, 2016 Subject: 2016 Approved Budget On December 7, 2015, Council approved a $250.2 million Operating and a $73.5 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 and and Subsequent Years Capital Forecast Overview of Changes Operating Budget - $250.2 Million The draft 2016 Tax Levy Requirements in the Operating Budget amounted to $118,786,712. The following chart summarizes the changes in the Operating Budget and the net tax levy requirements approved by Council on December 7, 2015 after completing detailed budget reviews:

3 Memorandum 2016 Approved Budget Page 2 All-inclusive Budget increase 2.0% + 1.0% = 3.0% All-inclusive increase for median residential property The 2016 approved Budget of 3.0% is 0.5% more than the guideline recommended by the Budget Committee through Report CPFS dated July 27, 2015 and approved by Council August 4, The 3.0% All-inclusive (Municipal, Education and Sewer Surcharge) tax increase is comprised of 2.0% for increased operating costs and traditional support for the capital program and 1.0% for increased tax-supported debt charges to implement the Capital Financing Policy approved by Council at its meeting held April 23, The primary reason for the 0.5% increase was the desire of Council to see key Capital projects move forward; namely: the Public Works Relocation Project, the New Arena Facility, and the Charlotte Street Renewal and Louis Street Urban Park.

4 Memorandum 2016 Approved Budget Page 3 Capital Budget - $73.5 Million There are 191 capital projects included in the 2016 Capital Budget for a total cost of $73.5 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 7, Attachment: Appendix A Excerpt from Council Minutes December 7, 2015

5 Appendix A Excerpt from Minutes December 7, 2015 Budget Committee Report Number 6 Moved by Councillor Clarke, seconded by Councillor Beamer That Report Number 6 of the Budget Committee meeting of November 23, 24, 25, 2015 be approved. The following motion was moved as part of the main motion. POA User Fees and Charges That, in response to the Provincial direction to increase the user fee for the Administration Default Fee for Non-payment; i. the user fee as listed on Form 6 - User Fees and Charges, on page 171 of the 2016 Operating Budget Details Book, be increased from $20.00 to $40.00 effective January 1, 2016; and ii. the Provincial Offences Act Office fine revenues as shown on page 49 of the 2016 Operating Budget Details Book, be increased by $262,000 from $2,312,000 to $2,574,000; the County Allocation be increased by $142,000 from $553,271 to $695,271; and the net City requirement be reduced by $120,000 from ($467,524) to ($587,524).

6 City Council Minutes Meeting of December 07, 2015 Page 2 Budget Committee Report No. 6 Meeting of November 23, 24, 25, 2015 To the Council of The City of Peterborough for Consideration at its Meeting held December 7, The Budget Committee as a result of its Meeting held on November 23, 24, 25, 2015 recommends as follows: 1. Director of Corporate Services Report CPFS Draft Budget That Council approve the recommendations outlined in Report CPFS15-050, dated November 2, 2015, of the Director of Corporate Services and the Chief Administrative Officer, as follows: a) That the 2016 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 2016 Budget process. c) That any unused CAO Budget at the end of 2016 be transferred to the Organizational Development Reserve, subject to the overall year-end position. (Page 24) d) That any unused Peterborough Technology Services Budget, at the end of 2016, be transferred to the Electronic Data Processing (EDP) Reserve, subject to the overall year-end position and that if actual 2016 costs exceed the 2016 Budget, funds may be drawn from the EDP reserve. (Page 31) e) That any Engineering Overhead surplus be transferred to the Engineering Design and Inspection Reserve, subject to the overall year-end position and that if actual 2016 Engineering costs exceed the Budget, funds may be drawn from the Engineering Design and Inspection Reserve. (Page 57)

7 City Council Minutes Meeting of December 07, 2015 Page 3 f) That any unused portion of the 2016 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 2016 Winter Control costs exceed the 2016 Budget, funds may be drawn from the Winter Control reserve. (Page 74) g) That any unused Traffic Signal Maintenance Budget at the end of 2016 be transferred to the Traffic Signal Reserve, subject to the overall year-end position and that if the actual 2016 Traffic Signal Maintenance costs exceed the 2016 Budget, funds may be drawn from the Traffic Signal Reserve. (Page 82) h) That any surplus funds at the end of 2016 for Market Hall be transferred to the Market Hall Capital Reserve for unanticipated maintenance expenses or small capital improvements. (Page 105) i) That any unused Sustainability Budget, at the end of 2016, be transferred to the Sustainability Reserve, subject to the overall yearend position, and that if actual 2016 costs exceed the 2016 Budget, funds may be drawn from the Sustainability Reserve. (Page 105) j) That any surplus funds at the end of 2016 for the Peterborough Sport and Wellness Centre be transferred to the PSWC Capital Conservation Reserve for future capital improvements. (Page 110) k) That any surplus funds at the end of 2016 for Arenas be transferred to the Arena Equipment Reserve for future equipment purchases. (Page 121) l) That any unused Homelessness net budget at the end of 2016 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 2016 Homelessness costs exceed the 2016 Budget, funds may be drawn from the reserve. (Page 134) m) That any unused Community Social Plan net budget at the end of 2016 be transferred to the Social Services Community Social Plan 40/60 Reserve for future program development, subject to the overall year-end position and that if actual 2016 Community Social Plan costs exceed the 2016 Budget, funds may be drawn from the reserve. (Page 134)

8 City Council Minutes Meeting of December 07, 2015 Page 4 n) That any remaining unused Social Services net budget at the end of 2016 be transferred to the General Assistance Reserve, subject to the overall year-end position and that, if actual 2016 Social Services costs exceed the 2016 Budget, funds may be drawn from the reserve. (Page 134) o) That any surplus in the 2016 Housing Operating Budget at the end of 2016 be transferred to the Housing Reserve, subject to the overall year-end position and that, if actual 2016 Housing costs exceed the 2016 Budget, funds may be drawn from the Housing Reserve. (Page 150) p) That any surplus in the 2016 Housing Choice Rent Supplement Program at the end of 2016 be transferred to the Housing Choice Rent Supplement Reserve, subject to the overall year-end position and that, if actual 2016 Rent Supplement costs exceed the 2016 Budget, funds may be drawn from the Rent Supplement Reserve. (Page 150) q) That any excess Airport development review fees at the end of 2016 be transferred to the Airport Development Review Reserve for future Airport Development related expenditures and that if the 2016 Airport development review costs exceed the review fees, funds may be drawn from the Airport Development Review Reserve. (Page 154) q.1) That any unused Building Inspection Budget at the end of 2016 be transferred to the Building Division Reserve and that, if actual building inspection costs exceed the 2016 Budget, funds may be drawn from the Building Division Reserve. (Page 158) r) That any adjustment to the City s 2016 requirement for the Municipal Property Assessment Corporation (MPAC), be netted against the City s 2016 General Contingency provision. (Page 163) s) That any unused portion of the 2016 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 2016 tax write-off costs exceed the 2016 Budget, funds may be drawn from the Allowance for Doubtful Accounts Reserve. (Page 165)

9 City Council Minutes Meeting of December 07, 2015 Page 5 t) That any unused Employee Benefits Budget at the end of 2016 be transferred to the Employee Benefits Reserve, subject to the overall year-end position, and that, if actual 2016 employee benefits exceed the 2016 Budget, funds may be drawn from the Employee Benefits Reserve. (Page 165) u) That any unused Insurance Budget at the end of 2016 be transferred to the Insurance Reserve, subject to the overall year-end position and that, if actual 2016 insurance costs exceed the 2016 Budget, funds may be drawn from the Insurance Reserve. (Page 165) v) That any unused 2016 Contingency Budget at the end of 2016 be transferred to the Capital Levy Reserve to be used for Capital works subject to the overall 2016 year-end position. (Page 165) w) That any unused Police Services Legal fees Budget at the end of 2016 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 2016 Police legal fees costs exceed the 2016 Budget, funds may be drawn from the Policing Legal Fees Reserve. (Page 169) x) That any unused Police Services Budget at the end of 2016 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 2016 Police Services costs exceed the 2016 Budget, funds may be drawn from the Police Special Projects Reserve. (Page 169) y) That any adjustments to the City s portion of the 2016 Peterborough County/City Paramedics Services Budget be netted against the 2016 General Contingency provision. (Page 174) z) That any unused Peterborough County/City Paramedics Services (PCCP) Budget at the end of 2016 be transferred to the PCCP Reserve, subject to the overall year-end position and that, if the actual 2016 PCCP costs exceed the 2016 Budget, funds may be drawn from the PCCP Reserve. (Page 174) aa) bb) That any adjustments to the City s portion of ORCA s 2016 Budget, based on the final approved ORCA Budget, be netted against the City s 2016 general contingency provision. (Page 175) That any adjustments to the City s portion of CCHU 2016 Budget, based on the final approved CCHU Budget, be netted against the City s 2016 general contingency provision. (Page 176)

10 City Council Minutes Meeting of December 07, 2015 Page 6 cc) dd) ee) ff) gg) hh) ii) That the 2016 budget request representing the levy required by the Downtown Business Improvement Area of the Corporation of the City of Peterborough during the year 2016 totalling $298,685, be approved. (Page 180) That the 2016 budget request representing all sums required by the Village Business Improvement Area of the Corporation of the City of Peterborough during the year 2016 totalling $16,380, be approved. (Page 181) That any net surplus funds, after the disposition of the recommendations in this report, from 2016 operations in excess of $100,000 be transferred to the Capital Levy Reserve to be used for Capital works. (Page 183) That a by-law be passed to establish the 2016 tax ratios for each property class as set out in the 2016 Operating Budget. (Page 193) That the 2016 tax rate for farmland awaiting development subclasses be 75% of the residential rate. (Page 194) That a system of graduated tax rates within the Commercial and Industrial classes not be implemented for (Page 194) That the capping policy for 2016 for the Multi-residential, Commercial and Industrial classes be as follows: i. Capping be based on a maximum increase threshold at the greater of 10% of the previous year s annualized capped taxes and 5% of the previous year s annualized CVA tax for the eligible property. (Page 194) ii. iii. iv. No capping credit be applied for properties where the required billing adjustment is within a $250 credit of the properties CVA tax; affected properties would be billed at their full CVA tax level. (Page 194) That properties that achieved CVA tax in 2015 remain at CVA tax from 2016 forward regardless of how reassessment affects the property. (Page 194) That properties that cross over from the clawback to the capping category or vice versa from 2015 to 2016 be taxed at CVA tax. (Page 194)

11 City Council Minutes Meeting of December 07, 2015 Page 7 kk) ll) That the threshold on the tax level for eligible new construction be 100%. (Page 194) That the Tax ratio reductions for mandated subclasses of vacant units remain at 30% for the Commercial class and 35% for the Industrial class. (Page 194) 2. Director of Corporate Services Report CPFS Primary Health Care Services Draft 2016 Budget for the Physician Recruitment Program That Council approve the recommendation outlined in Report CPFS15-059, dated November 23, 2015, of the Director of Corporate Services as follows: That the budget details provided to Budget Committee by the Primary Health Care Services for the 2016 Budget for the Physician Recruitment Program, be received. 3. Director of Corporate Services Report CPFS Otonabee Region Conservation Authority That Council approve the recommendations outlined in Report CPFS15-060, dated November 23, 2015, of the Director of Corporate Services as follows: a) That the budget details provided to Budget Committee by the Otonabee Region Conservation Authority, be received. b) That the $714,746 provision for Otonabee Region Conservation Authority included in the 2016 Draft Operating Budget on page 175 of the 2016 Highlights Book be increased by $7,198 to $721,944 and that the additional $7,198 be transferred from General Contingency on page 164 of the 2016 Highlights Book decreasing it from $778,298 to $771,100.

12 City Council Minutes Meeting of December 07, 2015 Page 8 4. Director of Corporate Services Report CPFS Peterborough County/City Health Unit That Council approve the recommendation outlined in Report CPFS15-063, dated November 23, 2015, of the Director of Corporate Services as follows: That the budget details provided to Budget Committee by Peterborough County/City Health Unit, be received. 5. Director of Corporate Services Report CPFS Fairhaven 2016 Budget That Council approve the recommendation outlined in Report CPFS15-064, dated November 23, 2015, of the Director of Corporate Services as follows: That the budget details provided to Budget Committee by Fairhaven, be received. 6. Director of Corporate Services Report CPFS Peterborough County/City Paramedics Service 2016 Budget That Council approve the recommendation outlined in Report CPFS15-065, dated November 23, 2015, of the Director of Corporate Services as follows: That the budget details provided to Budget Committee by the Peterborough County/City Paramedics Service, be received. 7. Fire Station Relocations (page 27) That staff provide a report on the projected use of our fire stations, how each station is utilized and what, if any, costs savings are available and the response times from each station, before next budget.

13 City Council Minutes Meeting of December 07, 2015 Page 9 8. Director of Corporate Services Report CPFS Sponsorship, Naming Rights and Advertising Policy (page 31) That Council approve the recommendation outlined in Report CPFS15-054, dated November 23, 2015, of the Director of Corporate Services as follows: a) That the Sponsorship, Naming Rights and Advertising Policy, as set out in Appendix A to Report CPFS15-054, be approved, as amended. b) That staff report back to Council in three years with an update on the program. 9. Traffic Engineering Technologist Position a) That a new Traffic Engineering Technologist position be created and the net provision of $1,795,198 for Traffic, shown on page 78 of the 2016 Highlights Book and pages of the 2016 Operating Budget Details Book, be adjusted as follows: the Personnel line be increased by $58,000; the Contractual Services be decreased by $20,000; and a Transfer from the Traffic Signal Reserve be increased by $38,000 for a net tax levy impact of zero and, b) That staff provide a report for the 2018 Budget updating Council on the work associated with this position. 10. Statutory Holiday Transit Service (page 78) a) That the net provision of $6,700,602 for Transit, shown on page 78 of the 2016 Highlights Book and pages of the 2016 Operating Budget Details Book, be adjusted as follows: the Personnel line be increased by $120,000; the Repairs and Maintenance line be increased by $34,800; Fees, Services Charges and Donations line be increased by $28,000; and the Contribution from Reserve from the Provincial Gas Tax Reserve be increased by $126,800 for no net tax levy impact. b) That staff report back in two years with an update on ridership statistics for statutory holidays.

14 City Council Minutes Meeting of December 07, 2015 Page Director of Community Services Report CSACH Relocation of Syrian Refugees City Support for Refugees a) That a new line be added as an Expenditure under Community Services Administration, as shown on page 103 of the 2016 Highlights Book and pages of the 2016 Operating Budget Details Book, with a budget of $25,000 for the Integration of the Refugees into the City of Peterborough and that the impact to the allinclusive rate is 0.01 moving the total all-inclusive rate to 2.51%; b) That staff work with outside agencies to determine how best to allocate the funds; c) That the 2017 Draft Budget include a further $25,000 for the Integration of the Refugees and d) That staff report back to Council as required to provide an update on the activities associated with this project. e) That the report on potential City support for the relocation of Syrian refugees to Peterborough be received for information. 12. Director of Community Services Report CSD Community Service Grant Consideration for Artspace That Council approve the recommendations outlined in Report CSD15-023, dated November 23, 2015, of the Director of Community Services, as follows: a) That Artspace be funded from the City s Community Service Grant program, commencing in 2016; b) That the 2016 funding for Artspace be $20,000 with the funds transferred from the Community Services Administration Sponsorship budget; and c) That the Draft 2017 Budget include an additional $15,000 for a total allocation of $35,000 for Artspace in 2017.

15 City Council Minutes Meeting of December 07, 2015 Page County Jail Park Project (page 106) That the $150,000 identified on page 106 of the Budget Highlights Book for the County Jail Park be removed from the capital budget and placed in the capital levy reserve. 14. Director of Corporate Services Report CPFS Peterborough Economic Development That Council approve the recommendation outlined in Report CPFS15-061, dated November 23, 2015, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 24, 2015 Budget Committee by Peterborough Economic Development, be received. 15. Director of Corporate Services Report CPFS Peterborough Humane Society That Council approve the recommendation outlined in Report CPFS15-062, dated November 23, 2015, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 24, 2015 Budget Committee by Peterborough Humane Society, be received. 16. Director of Corporate Services Report CPFS Peterborough Police Services 2016 Budget That Council approve the recommendation outlined in Report CPFS15-066, dated November 23, 2015, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 24, 2015 Budget Committee by Peterborough Police Services, be received.

16 City Council Minutes Meeting of December 07, 2015 Page Director of Corporate Services Report CPFS Funds Required and Timelines for Key Capital Projects That Council approve the recommendation outlined in Report CPFS dated November 18, 2015, of the Director of Corporate Services, as follows: That a further increase of 0.5% be added to the 0.5% 2016 capital component of the all-inclusive tax increase, for a total 2016 all-inclusive increase of 3.01%, and that the 2017 Draft Capital Budget be prepared to include a further 1.00% all-inclusive tax rate increase for key specific projects. 18. Arena Project (page 122) That the new arena facility, as referenced on page 122 of the Budget Highlights Book, be allocated $1.5 million in the 2016 budget. 19. Public Works Yard (page 75) That the Public Works Relocation Project as referenced on page 75 of the Budget Highlights Book be increased from $3.5 million by $3.2 million to $6.7 million in the 2016 budget. 20. Charlotte Street Renewal Louis Street Urban Park (page 141) That the Charlotte Street Renewal and Louis Street Urban Park project as referenced on page 141 of the Budget Highlights Book be allocated $4.2 million in the 2016 budget. 21. Rent Supplement Program That a staff report be brought forward in the first quarter of 2016 outlining the implications of providing additional funds as follows: a) An additional allocation of $50,000 to the Housing Stability Program as a one time draw funded from the General Assistance Reserve, and b) An additional allocation of $50,000 to the Rent Supplement Program funded from the General Assistance Reserve.

17 City Council Minutes Meeting of December 07, 2015 Page Discretionary Benefits That $100,000 be added to the Social Services overall discretionary benefits budget to address the following priority areas: a) $50,000 to adult dentures; and b) $50,000 to the recreation subsidy, with the intention that the subsidy be returned to $200 per year per child. Submitted by, Councillor Clarke Chair November 25, 2015

18 Table of Contents Highlights Book (Book 1 of 4) Part Budget Overview 2016 BUDGET Table of Contents 2016 Operating Budget (Revenues and Gross Expenditures) Operating Budget: Revenues by Type Operating Budget: Gross Expenditures Operating Budget: Net Expenditures... 5 Net Tax Levy Requirement... 6 Median residential assessment... 7 Residential education rate... 7 Sewer surcharge rate to stay at 95%... 7 Budget guideline 2% + 1% = 3%... 8 How 3% All-inclusive relates to Net Tax Levy Requirement... 8 What does 1% mean?... 9 Comparative All-Inclusive Increase For Median Residential Property Tax levy requirement change factors Capital Budget Capital Expenditures Capital Financing by Source Largest 2016 Capital Projects Part Operating and Capital Budget (by Department) Organization Chart City Council: Operating Budget Chief Administrative Officer: Operating Budget Fire Services Division: Operating Budget Fire Services Division: Capital Budget Emergency and Risk Management: Operating Budget Emergency and Risk Management: Capital Budget i -

19 Table of Contents Corporate Services: Departmental Summary: Operating Budget Corporate Services: Departmental Summary: Capital Budget: Tangible Capital Asset Corporate Services: Departmental Summary: Capital Budget: Other Legal Services: Operating Budget Utility Services: Departmental Summary: Operating Budget Utility Services: Departmental Summary: Capital Budget: Tangible Capital Asset Utility Services: Departmental Summary: Capital Budget: Other Utility Services: Budget (By Division) Utility Services Administration: Operating Budget Utility Services Administration: Capital Budget Flood Reduction Master Plan: Capital Budget Engineering, Construction and Infrastructure Planning: Operating Budget Engineering, Construction and Infrastructure Planning: Capital Budget Arterial Streets Collector and Local Streets Bridges New Sidewalks Sanitary Sewers Storm Sewers Public Works Division: Operating Budget Public Works Division: Capital Budget Transportation Division Operating Budget Provincial Gas Tax Parking Traffic Transit Capital Budget Parking Capital Budget Traffic and Transportation Capital Budget Transportation Demand Management (TDM) Capital Budget Environmental Protection Division: Operating Budget Environmental Protection Division: Capital Budget Waste Management Division: Operating Budget Waste Management Division: Capital Budget Community Services: Departmental Summary: Operating Budget Community Services: Departmental Summary: Capital Budget: Tangible Capital Asset Community Services: Departmental Summary: Capital Budget: Other ii -

20 Table of Contents Community Services: Budget (By Division) Community Services Administration Operating Budget Community Services Administration Division: Capital Budget Recreation Division: Operating Budget Recreation Division: Capital Budget Arts, Culture and Heritage Division: Operating Budget Arts, Culture and Heritage: Capital Budget Library Board Capital Budget Art Gallery Capital Budget Arenas Division: Operating Budget Arenas Division: Capital Budget Social Services Division: Social Assistance Social Services Division: Children s Services and Community Social Plan Municipal Cost formulas per the Consolidated Municipal Services Management Agreement Ontario Works and Employment Assistance Administration City and County Ontario Works Caseload and Cost Per Case Discretionary Benefits Community Homelessness Prevention Initiative Children s Services Community Social Plan Social Services Reserve Social Services Capital Planning and Development Services: Departmental Summary: Operating Budget Planning and Development Services: Departmental Summary: Capital Budget: Tangible Capital Asset Planning and Development Services: Departmental Summary: Capital Budget: Other Planning and Development Services: Budget (By Division) Planning and Geomatics/Mapping Administration: Operating Budget Planning Division: Capital Budget Planning 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 iii -

21 Table of Contents Building Inspection and Protective Services Division: Operating Budget Financial Services Other Financial Summary Capital Financing Costs Property Taxation Costs Other Expenditures Transfers To Organizations For Provision Of Services Summary Police Services: Operating Budget Police Services: Capital Budget Fairhaven Peterborough County/City Paramedics Otonabee Region Conservation Authority (ORCA) Peterborough County-City Health Unit Operating Budget Peterborough Economic Development Peterborough Humane Society Primary Health Care Services Business Improvement Areas Corporate Revenues Summary Investment Revenue Payments in Lieu Utilities Group of Companies Revenues Surplus Carried Forward as 2016 Revenue Sewer Surcharge Other Fees and Services Charges Summary Part Property Taxation Taxation Revenue Summary What a Residential Taxpayer pays for Municipal Services for the year Tax Policy Tax Assessment and Tax Rate Information Taxable Current Value Assessment Weighted Taxable Assessment Municipal Tax Rates Part Other Sections Staffing New Proposed Positions in 2016 Budget Total Staff Complement iv -

22 Table of Contents 2016 Full Time Equivalent (FTE) Staff allocated by Department Conversion of 2016 Budget to Full Accrual PSAB Compliant Budget Requests not Included in the 2016 Budget Capital Financing Supplementary Information Capital Levy Calculation and Tax Supported Debt Federal Gas Tax Program Development Charges Reserve Funds Long Term Debt Reserves and Reserve Funds Please Refer to Books 2-4 for detailed information as follows: Book 2: Operating Budget Details and User Fees and Charges Book 3: Capital Budget Details Book 4: Work Programs for Departments and Divisions; Staffing Supplementary Information; Assessment, Tax Rate and Tax Policy Supplementary Information; and Glossary of Budget Terms and Acronyms - v -

23 2016 Budget Highlights Part Approved Budget Overview

24 Part Approved Budget - Overview 2016 Operating Budget (Revenues and Gross Expenditures) The 2016 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

25 Part Approved Budget - Overview Factors impacting Operating Revenues Conditional Grants are projected to increase by approximately $3.8 million, mostly as a result of an increase in grant revenues for Social Assistance and Children s Services in the amount of $2.9 million and an increase in Housing subsidies in the amount of $0.7 million. Tipping Fees the recent decline in Tipping Fees experienced in the past two years is expected to rebound and increase by approximately $0.5 million over the 2015 Budget year. The facility is jointly owned by the City and County with each municipality owning a 50% share. Other Fees and Service Charges will increase with items such as corporate advertising, building permits, parking revenues and fees for the before and after school program; however, there are certain fees that are projected to decrease such as POA revenues. Transfers from Other Reserves there will be decreases in DOOR funding within the Housing Budget in the amount of $625,000, as well as reduced contributions from the Social Services Reserve in the amount of $123,100 as the tax base funds more of certain items such as the Discretionary Benefits and Homelessness. 3

26 Part Approved Budget - Overview Factors Impacting Gross Expenditures Gross Expenditures for 2016 have increased $9.5 million over the 2015 gross expenditures. The key factors are: Personnel - $2.3 million Children s Services Early Learning $1.1 million Ontario Works Administration and Employment - $0.8 million Winter Control - $0.3 million Increase in Debt Financing Charges - $1.5 million Net Police Services - $0.6 million Increased support for Fairhaven - $0.3 million 4

27 Part Approved Budget - Overview Gross expenditures versus net expenditures Gross expenditures, less direct revenues of $118.0 million, such as conditional grants and user fees, result in net expenditure requirements for 2016 of $132.2 million as shown in the following chart. Factors impacting Net Expenditures The 2016 net expenditures have increased $5.0 million. Some of the key factors impacting gross expenditures have offsetting revenues which means they do not impact net expenditures. As an example, Social Services gross expenditures for mandatory benefits have increased $0.5 million, but subsidy for Ontario Works Mandatory Benefits is increasing $1.4 million as a result of the provincial cost sharing percentage increasing by 2.8% from 91.4% to 94.2%, therefore the net is actually a decrease of $0.9 million. The key factors impacting the 2016 Net Expenditures from the 2015 level are: Personnel ($1.8 million) Winter Control Roads and Sidewalks ($0.3 million) Social Services (-$0.4 million) Increase in Debt Financing Charges ($1.5 million) Increased support for Fairhaven ($0.3 million) 5

28 Part Approved Budget - Overview Net tax levy requirement equals $119.6 million up by 4.1% Corporate revenues for 2016, such as Supplementary taxes, Investment interest, Payments in Lieu and City of Peterborough Holdings Inc. s return on investment total $12.6 million and are deducted from the $132.2 million net departmental expenditures to derive the $119.6 million net tax levy requirements for The net tax levy requirements have increased by 4.1% or $4.7 million compared to Tax Ratio Reduction Program re-instated for 2016 As directed by Council through the 2016 Budget Guidelines report, the Tax Ratio Reduction Program that was deferred for the 2015 Operating Budget resumes in 2016 for Commercial and Industrial property owners, albeit at a rate that is onehalf of the annual reduction that was originally included in the program. The multi-residential tax ratio remains at the 2011 rate. That decision, in effect, has added a 0.2% component to the All-inclusive residential rate and without any other impacts; the residential tax increase would have been 2.8%. Effect of assessment growth on the All-inclusive Tax increase The 2016 estimated real current value assessment growth reduces the Allinclusive Tax increase by 0.6%. The net result is a 0.8% municipal residential tax rate increase. These impacts are reflected in Chart 1. 6

29 Part Approved Budget - Overview Chart 1 Effect of Assessment Growth and Tax Ratio Changes on the Allinclusive Tax increase Median residential assessment: $228,000 The 2016 Budget is based on current assessment values as of January 1, Adjustments to market values from January 1, 2008 to 2012 values are being phased-in equally over the years with 2016 representing year four. The assessment used for the 2016 taxation year also reflects an estimated 1.00% real growth component for the Residential Class and 0.75% growth in the Multi-residential Property Class as reported to Budget Committee through Report CPFS Budget Guidelines dated July 27, It is expected that the median residential assessment for a single family dwelling (not waterfront property) for 2016 will be $228,000, an increase of 2.4% over the 2015 median assessed value of $222,600. 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 2016 Draft Budget, it has been assumed that the rate will decrease by 4.5%. Sewer surcharge rate to stay at 95% The draft 2016 Budget assumes a sewer surcharge rate of 95%, the same as in As of the budget print date, the Peterborough Utilities Commission had not approved the 2016 water rates. The 2016 Operating Budget assumes a 2.2% 7

30 Part Approved Budget - Overview annualized water rate increase for The result is that the average house will experience a $9.33 (2.2%) increase in their sewer surcharge annual amount payable over the 2015 level. All-inclusive Budget increase 2.0% + 1.0% = 3.0% All-inclusive increase for median residential property When the real assessment growth, the 1.5% proposed municipal residential tax rate increase, 4.5% reduction in the education rate, and no change to the 95% sewer surcharge rate are all considered, the median single family dwelling will see an All-inclusive 3.0% ($108.31) annual increase ($9.03 monthly) in municipal, education, and sewer surcharge payable. The approved 2016 Budget of 3.0% is 0.5% more than the guideline recommended by the Budget Committee through Report CPFS dated July 27, 2015 and approved by Council August 4, The 3.0% All-inclusive (Municipal, Education and Sewer Surcharge) tax increase is comprised of 2.0% for increased operating costs and traditional support for the capital program and 1.0% for increased tax-supported debt charges to implement the Capital Financing Policy approved by Council at its meeting held April 23, How 3.0% All-inclusive rate increase relates to the $4.7 million increase in the Net Tax Levy Requirement The 3.0% All-inclusive rate increase is a reference to the increase that a typical homeowner would see on their 2016 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 $4.7 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. 8

31 Part Approved Budget - Overview What does 1% mean? Both the All-inclusive Tax increase and the Net Tax Levy Requirement are within the control of Council. For 2016, a 1.0% change in the All-inclusive Tax Rate (combined Municipal and Education Tax on Assessment plus Sewer Surcharge) equates to approximately $1,500,000 in tax supported expenditures. Chart 2 summarizes the residential tax and sewer rates, and resulting levies. 9

32 Part Approved Budget - Overview Chart 2 Comparative All Inclusive Tax and Sewer Surcharge Rates and Levies for Median Single Family Dwelling 10

33 Part Approved Budget - Overview Factors impacting 4.1% increase in the tax levy requirement For the most part, the 2016 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. Table 1, lists the major areas reflected in the draft budget that have impacted the 2016 tax levy requirement. The draft 2016 Budgeted Tax Levy Requirements amounted to $118,786,712 as shown on page 12 of the 2016 Draft Budget Highlights Book. The following chart summarizes the additional net tax levy requirements approved by Council on December 7, 2015 after completing detailed budget reviews. The supplementary Notes on pages 13 and 14 provide additional commentary on key impacts. 11

34 Part Approved Budget - Overview 12

35 Part Approved Budget - Overview Tax Levy Requirement Change Factors - Supplementary Notes Personnel costs Total personnel costs for 2016 will amount to $93.1 million for 1,011.9 employees (full-time equivalents) and represents 37.4% of the total $249.1 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 2015 hires and some proposed new hires. Lines 2.01 Excluding Police, gross personnel costs have increased by $1.3 million. Altogether, personnel costs equate to a 1.2% impact on the increase in the net tax requirement. Social Services Upload Lines Social Services caseloads have been budgeted with a zero net increase and when combined with the continued provincial uploading of mandatory benefits will result in a savings of $0.9 million. Capital Financing Policy - Increase in Tax Supported Debt Costs Line 4.01 A provision has been included in the amount of $1.50 million for tax supported debt servicing costs for a combined impact of 1.0% on the All-inclusive Tax Rate. Inflationary Factors/Other Increased Costs Line In preparing electricity estimates, staff have considered any expected change in consumption and a price increase of 5%. The impacts to various budgets are expected to amount to $0.3 million. Line 5.03 Based upon very preliminary discussions with staff at Fairhaven, a provision of $293,337 has been included as a placeholder in the 2016 Budget as the City s share of a potential shortfall in the Funding Agreement at Fairhaven. Line 5.05 Police costs, including increases to all personnel costs, have increased $0.6 million. Increased Revenues or Decreased Expenditures offsetting budgetary pressures Line 7.02 Landfill tipping fees are expected to increase by $0.5 million. After all other budget changes are considered, including the County s share, the 2016 net tax requirement has decreased by approximately $218,

36 Part Approved Budget - Overview Other factors affecting the 2016 tax levy requirement The other impacts shown will be discussed in the 2016 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. 14

37 Part Approved Budget - Overview 2016 Capital Budget: $73.5 million There are 191 capital projects included in the 2016 Capital Budget for a total cost of $73.5 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. Along with project details, justification and effects on future Operating Budgets, certain projects contain details of Accessibility Considerations. Annually, as part of the AODA legislation, a multi-year Accessibility Plan must be prepared and updated. When capital projects are being planned, any accessibility considerations are referenced to ensure they are picked up and included in the Accessibility Plan. Capital Needs Outweigh Funds Available When preparing the draft 2016 Capital Budget, the requested capital program from departments far exceeded the available funds. The program was reduced to come in within the guideline provided by Council. In looking forward to future years, capital pressures continue to outweigh available funds. In the 2016 Draft 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. 15

38 Part Approved Budget - Overview 2016 Capital Budget Summary: $73.5 million The 2016 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

39 Part Approved Budget - Overview 17

40 Part Approved Budget - Overview 20 Largest 2016 Capital Projects The $52.7 million in these top 20 projects represents 71.7% of the total $73.5 million Capital Budget. 18

41 Part Approved Budget - Overview 19

42 2016 Budget Highlights Part Approved Operating and Capital Budget (by Department)

43 Organization Chart While preparing for the Budget Committee Reviews, Council is encouraged to review the 2016 Work Programs found in Book 4. 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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45 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 Assistant to the Mayor. Overall, 2016 shows an 11.5% decrease as the previous positions of Executive Assistant and Councillor Services Assistant positions were eliminated and restructured into one Assistant to the Mayor position. Council Remuneration is based on the policy adopted by Council on July 30, 2012 based on a Council motion made when discussing Report CP dated July 23, 2012 of the Director of Corporate Services. The motion reads as follows: That the remuneration be adjusted annually on December 1, based on either the Consumer Price Index all items Ontario, as published by Statistics Canada, for December 1, 2012 or the lowest negotiated CUPE settlement, which ever is the lower rate, as determined by the City Treasurer. As of December 1, 2015, remuneration for the Mayor is estimated to be $68,273 and for each Councillor $27,

46 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. Recommendation That any unused CAO Budget at the end of 2016 be transferred to the Organizational Development Reserve, subject to the overall year-end position. 24

47 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. Personnel costs for the 99 staff in the Division represent 85.3% of gross expenditures. For 2016, for the Peterborough Professional Fire Fighters Local 169, personnel costs are based on estimates only as the previous arbitration award received in March 2015 addressed salary compensation up to and including December 31, Fire hydrant charges to the City of Peterborough by the PUC remain at $650,000 for 2016; however, the actual costs incurred by the PUC to provide this service continue to exceed this amount. 25

48 Fire Apparatus Replacement/Additions The expenditure in 2016 is for the replacement of a Rescue Pumper. 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 inservice 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. 26

49 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. One of the approved recommendations was that the Station Location Review presentation be received for information and be used as a planning guide for the rebuilding and/or relocation of Fire Stations. Station #3 was moved in August 2012 to a renovated facility on Clonsilla Avenue that provides improved response times to the west end as well as serving the south end. As well, report CSF (b) indicated that Station #2 on Carnegie Avenue would be replaced with annual capital budget priorities and scheduled development. The $3.0 million provision shown in 2018 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. 27

50 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 non-government 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 the acquisition of property, equipment and vehicle insurance, risk management training and programs, and the management of incident reports and handling of claims brought against the City. 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. 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. 28

51 Back-up Generators In 2007, a Generator Purchasing Program was established as a result of an identified need for the City to provide emergency reception/evacuation centre services, without reliance on resources from outside of the City. There is no recommendation for 2016, the program will resume in

52 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 Special Projects. The City Clerk s budget includes a new full time Records Management position. The position has been funded in capital for four years; however, the ongoing nature of records management necessitates a permanent position to guide the corporation in its records management obligations. The Financial Services budget includes a request for a new Corporate Sponsorship Coordinator. Like many other municipalities, the City has opportunities for naming rights, advertising and sponsorships of events and programs that could be offered to businesses and generate non-tax revenue to help offset its costs. This position will lead the initiative and work with all departments to create opportunities and approach potential partners. The 30

53 position has been budgeted with a net zero tax levy impact and is expected to fully recover at least its cost through additional advertising and sponsorship revenues. The Property Division operating budget includes a $50,000 increase for City Hall and Police Station snow clearing. This was previously done by Public Works (PW) staff and will free up PW staff to focus more on City streets and sidewalks. It also includes a $35,000 increase for Custodial Services. These increases are offset by new revenue of $25,000 for property management of the Simcoe Street Court House. The net increase of 6.9% in Corporate Information Services reflects the increase of individual applications or systems that are supported and continues to be one of the significant growth areas over the past five years. This signals that City staff are finding new and improved ways to use technology to meet their business needs. To date, this has been absorbed with minimal or no growth of IT staff resources; however, the current rate of growth cannot be sustained with current resource levels. Gross expenditures are $3.0 million with approximately $2.2 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 $1.1 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 $1.8 million residing in Corporate Services represents the non-allocated charges. Recommendation That any unused Peterborough Technology Services Budget, at the end of 2016, be transferred to the Electronic Data Processing (EDP) Reserve, subject to the overall year-end position and that if actual 2016 costs exceed the 2016 Budget, funds may be drawn from the EDP reserve. The Facilities and Special Projects Division provides project management resources to capital projects throughout the Corporation. In 2016, the priorities for capital initiatives include project management for: The Peterborough Public Library renovation and expansion project design, tendering and construction. The temporary relocation of the library which includes renovations to the temporary site, move and storage of excess materials. Completion of the Trent sport field project (proposed fields opening June 1, 2016). Development and construction of two new picnic pavilions in public parks. 31

54 The implementation of the Little Lake Master Plan study recommendations with the construction of shoreline rehabilitation in selected areas of Little Lake. This project is a cooperative initiative with Otonabee Conservation. These projects are listed in their corresponding divisional capital budgets. 32

55 Corporate Services Departmental Summary - Capital Budget 33

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57 The 2016 Capital Budget for Property reflects the consolidation of facility costs for numerous Departments/Divisions. Building Assessment Audits have been completed for all major facilities. Completing the work recommended in the audits is subject to the financing constraints of the capital budget and prioritized in a 20-year plan. The identified items that require repair and/or replacement are designated per facility. Among the largest expenditures planned for 2016 are the installation of a new Elevator at City Hall in the amount of $1,083,000, Police Station Window Replacement for $350,000 and Exterior Facade and Window Replacement at the Museum for $550,

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60 Park Washroom Replacement Buildings Resources are recommended in 2017 to demolish the existing washroom building at Nicholls Oval Park and replace it with a new facility that services all users of the park, including persons with a disability. Construction of New Athletic Facilities This budget identifies a need for future sport field development; however, no commitments have been made on a project to date. The outcomes of VISION 2025 for recreation and parks will help to guide the development of this capital initiative as well as the partners for the project. Fleming College Sport Fields 38

61 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 enterprise/business systems. 39

62 Peterborough Technology Services 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

63 Enterprise Software Modernization Specific computerized applications due for replacement include: - Financial Enterprise Resource Planning software - the product has been in use since 1997 and although it has been updated at various times throughout the years, it is built on a framework that is outdated and is becoming increasingly difficult to use to meet today's business requirements. - Recreation/Point of Sale Software - the product is end of life with the Vendor no longer providing support past November 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. 41

64 Corporate Website Refresh The City's website is a key communication tool for the municipality. has over 100,000 visitors per year, who view more than 360,000 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 two-way communication with residents through online surveys and links with social media. The City's website is more than ten years old and is beginning to lag behind current expectations in both functionality and design. A website refresh is required to address these issues. Participatory Budgeting On May 19, Council approved the recommendations outlined in Report CPFS15-019, dated May 11, 2015 of the Director of Corporate Services as follows: a) That a Participatory Budgeting (PB) Pilot be introduced in 2016 in each of the five City Wards and that the draft 2016 Capital Budget includes funding for the project. b) That each Ward be allocated an amount of $20,000 in capital funding for community improvement projects identified through a Participatory Budgeting Process. 42

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 $192,

66 Kawartha Trades and Technology Centre (KTTC) Through Report CAO dated July 28, 2014, Council approved the funding agreement and the payment of the first installment of $333,300. The 2016 Draft Capital Budget includes the third and final installment of $331,400. 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, %. The phase-in of the rates resulted in lost Development Charge revenues amounting to $1.3 million. In Section 5 (6) 3, the Act also states: If the development charge by-law will exempt a type of development, phase in a development charge or otherwise provide for a type of development to have a lower development charge than is allowed, the rules for determining development charges may not provide for any resulting shortfall to be made up through higher development charges for other development. The effect of 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 CPFS 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. 44

67 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. The Provincial Offences Office provides administration and court services for the processing of offences under the Provincial Offences Act. For 2016, POA fine revenues are expected to increase slightly compared to the level budgeted in 2015, mostly as a result of the increase by the Attorney General of Ontario in the default fee from $20 to $40. This fee increase effectively reduced the City s net requirement by $120,000. Net revenues are divided between the City and the County of Peterborough, based on weighted assessment. The County share for 2015 is 54.2%, up slightly from 54.0% in

68 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. Staff negotiated a three-year lease extension with the Ministry of the Attorney General for its continued use of 70 Simcoe Street until December After that time, 70 Simcoe Street may then become available to assist with overcrowding of the POA Office and lack of court time. As such, a POA Facility Needs Study has been budgeted for $25,000 in the 2016 Capital Budget. 46

69 Utility Services Departmental Summary Operating Budget The Utility Services Department provides a wide range of services and has a gross operating budget amounting to $55.3 million. 47

70 Utility Services Departmental Summary Capital Budget 48

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72 Utility Services Administration - Operating Budget The Office of the Utility Services Director directs, manages and coordinates the provision of transit, transportation services, waste management, public works and environmental protection activities as well as the construction and maintenance of all public infrastructure in the City (except for water treatment/distribution and the electrical systems). The tenant lease currently in place at the 791 Webber Avenue location expires early in As a result, revenues for the Division have decreased by $80,000 compared to

73 Street Light Review and Upgrade A large percentage of the existing street light infrastructure is approaching or has past its useful life. In addition, there are cost benefits available with some of the new light sources now coming onto the market. In 2012, the City updated existing inventory information so that an appropriate asset management regime can be developed. In 2013, the City completed a condition rating of the street lighting infrastructure. Based on the condition rating recommendations, a number of streetlight poles will be replaced in An assessment of new light sources is on-going. A new pilot project was initiated in 2015 to test specific LED lights. The retrofit to LED technology is expected to be done in partnership with an entity for the supply and installation of equipment. Associated with this retrofit, some upgrades to the aging infrastructure will be required. 51

74 Emerald Ash Borer (EAB) Management Plan On September 30, 2013, Council, in considering Report USDIR13-012, directed staff to proceed with a revised EAB Management Plan. Using more up-to-date information, and examining alternative management scenarios, staff was able to retain all the elements of the original Management Plan yet reduce the ten-year cost by about $1 million. Emerald Ash Borer The EAB Management Plan combines knowledge of the EAB lifecycle with good forestry practices and cost containment to provide a viable process for dealing with the EAB and the Ash tree component of our urban forest. The Urban Forest Specialist is a 3-year (April 9, 2013 to April 3, 2016) contract position that is supported by the Emerald Ash Borer (EAB) capital program and was established to lead the preparation of an EAB Management Plan. 52

75 The Management Plan has been adopted by Council and the Urban Forest Specialist has taken on many aspects of urban forestry beyond EAB such as tree evaluations for road construction projects, tree risk assessments and advancement of many Urban Forest Strategic Plan recommendations. Moving this position from a temporary (contract) to a permanent position will ensure the City is well situated in fight against EAB and that the principles and policies established in the Urban Forestry Strategic Plan continue to move forward. 53

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77 Bears - Marina Boulevard Major Storm System By-Pass The Bears Creek Flood Reduction Master Plan was approved by Council on March 25, 2008 through Report USEC Report USEC entitled Flood Reduction Watershed EA Capital Projects Update adopted by Council on April 7, 2014 prioritized the watershed capital projects. As described in Council Report CPFS , the City is currently pursuing external funding through the Province for this project. 55

78 CCTV Inspection of Pipes (A-230) The sanitary sewer system is now on a six-year cycle of regular inspections. Problem areas are identified during inspections. Based on these CCTV inspections, remedial plans to address problems in the sanitary sewer system are developed and implemented. 56

79 Engineering, Construction and Infrastructure Planning Divisions - Operating Budget This Division manages the maintenance, rehabilitation and development of the City s road, sidewalk, sewer and storm water facilities. In addition they provide the engineering review for all development applications and maintain the City s streetlight infrastructure. Recommendation That any 2016 Engineering Overhead surplus be transferred to the Engineering Design and Inspection Reserve, subject to the overall year end position and that if actual 2016 Engineering costs exceed the Budget, funds may be drawn from the Engineering Design and Inspection Reserve. 57

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81 Parkhill Road West - Wallis Drive to West City Limit Major reconstruction and urbanization of Parkhill Road is required to improve the safe operation of this road, provide better storm drainage control, and to service new development within the Jackson Planning Area. This project will involve pavement, curb/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. 59

82 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. The project cost will be more accurately defined during completion of 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. Integration with the planned Parkway project will also guide the design of this project. The development and influence of the Parkway project has allowed the Chemong Road reconstruction to be deferred from its original schedule. Ashburnham Drive - Lansdowne Street to Maria Street This work includes major reconstruction to a two lane urban arterial. Through Report USEC15-005, dated March 30, 2015, Council pre-committed $2,960,000 towards the project in The project involves asphalt pavement, concrete curb and gutter, sidewalk(s), bike lanes, storm/sanitary sewers and turning lanes with signalization. This project will improve the road level of service along the north/south arterial street to an urban cross section. Detailed design occurred in 2014 along with property acquisition, tree clearing and utility relocations. In 2015, tendering of the full project limits was completed and awarded. Construction began in 2015 and is expected to be completed in The majority of the funds requested in 2016 (except for $70,000 were preapproved by Council during consideration of Report USEC Brealey Drive Urbanization Lansdowne Street West to Stenson Boulevard/Sir Sandford Fleming College Entrance Detailed design occurred in 2014 along with property acquisition, tree clearing and utility relocations. In 2015, tendering of the full project limits was completed and awarded. Construction began in 2015 and is expected to be completed in The majority of the funds requested in 2016 (except of $70,000 were preapproved by Council during consideration of Report USEC This project includes major reconstruction to a two lane urban arterial. The project will involve asphalt pavement, concrete curb and gutter, sidewalk(s), a multi-use trail, storm sewers and turning lanes with signalization. 60

83 Armour Road - Nassau Mills Road South to Rotary Trail This project is for the construction of a partially realigned two lane urban arterial with sidewalk(s), bikeway, storm sewer, etc. Construction timing is dependent upon the rate of development in the Auburn Secondary Plan area, particularly the former Dafoe property and development of the City Arena Complex and Trent Research and Innovation Park. To facilitate the stormwater management issue as well as access points to the secondary plan development, the City is securing funds for the Environmental Assessment (EA). This EA (or equivalent through the planning process) will provide the ultimate Armour Road alignment, access points for the developers and stormwater management in the area of a Zone 1 water intake area. This EA will be coordinated with the Nassau Mills Bridge projects (Ref and ). Greater detail on design, utility relocations/property acquisition and construction will be provided when more accurate information is available regarding the timing for development of the Auburn Secondary Plan area. 61

84 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). 62

85 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 will also include re-inspection of our arterial roads and a portion of our local roads. Re-inspection information will be utilized for subsequent resurfacing programs. 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. 63

86 Donegal Street Bridge over Jackson Creek The 2005 Bridge Inspection Program identified the Donegal Street Bridge for rehabilitation. The Donegal Street Bridge was constructed around 1935 and has never been rehabilitated or repaired over its life. Previous budgets have allocated funding to the bridge rehabilitation. The 2016 funding is required to expand the scope of the rehabilitation to include the approach elements of the bridge. 64

87 Nassau Mills Road Bridge over Otonabee River The 2011 Transportation Master Plan concluded that a new four lane bridge, and widening of Nassau Mills Road from University Road to Armour Road to four lanes, will be required at this location by To facilitate construction of a new bridge at this location, the City must complete a Schedule C Class Environmental Assessment (EA) and is proposed that this be coordinated with the Armour Road project (Ref ). It is proposed to begin the EA in 2016 to support potential development in the north end. EA approval and detailed design will follow as phase two of the project. Bridge construction timing will be dependent on the outcome of the EA and projects needed to support development in the area. Nassau Mills Road Bridge over Trent Severn Waterway The 2011 Transportation Master Plan concluded that a new four lane bridge, and widening of Nassau Mills Road from University Road to Armour Road to four lanes, will be required at this location by To facilitate construction of a new bridge at this location, the City must complete a Schedule C Class Environmental Assessment (EA) and this will also be coordinated with the Armour Road project (Ref ). It is proposed to begin the EA in 2016 to support potential development in the north end. EA approval and detailed design will follow as phase two of the project. Bridge construction timing will be dependent on the outcome of the EA and projects needed to support development in the area. 65

88 Detailed 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)). The 2016 project funding will complete the detailed inspections required that are identified in the previous OSIM program. OSIM Bridge Preventative Maintenance Program Following the condition inspection, the City was provided a capital program that reflects the needs identified to maintain 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. 66

89 Various New Sidewalk Installations City Council, at its meeting of June 6, 2011, in considering Report USDIR dated May 30, 2011, reaffirmed Council s plan to install new sidewalks as per Report USTR To achieve the 14-year implementation schedule as identified in Report USTR as approved by Council on March 25, 2008, budget amounts of $475,000 (2008 dollars) are required in the years The 2016 projects are Priority 1 or 2 and are located on Arterial Roads and are not anticipated to be impacted by ongoing sidewalk policy review. Various New Multi-Use Trails 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. 67

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91 Sanitary Sewer Master Plan Implementation In 2012, the City completed the Detailed Sanitary Sewer Class Environmental Assessment (EA) as recommended in the City s 2005 Flood Reduction Master Plan. Completion of the Detailed Sanitary Sewer Class EA provided a plan to mitigate and manage extraneous flows into the sanitary sewer system as well as reduce the frequency of raw sewage bypasses at the sewage treatment plant. It also recommends an ongoing work program for the continuous monitoring of the sanitary sewer system. The Detailed Sanitary Sewer Class EA was developed as part of the overall evaluation and solution to the existing and potential flooding concerns within the City. Applegrove Avenue Chemong Road to Highland Road Due to the age and deteriorating condition of the sanitary sewers, replacement is proposed. The system in this area dates back to the 1950s and although it should theoretically not be approaching its expected life, due to its condition, it is proposed to be replaced. The project will also address replacement of the storm sewers and pavement structure, as well as the need for pedestrian networks. The PUC has also indicated the need for watermain infrastructure on the project and so it will be a collaborative project. Simcoe Street Forcemain Replacement Due to the deteriorating condition of the sanitary sewer forcemain along Simcoe Street, replacement is proposed. Operational issues experienced in the last ten years have included three ruptures. Repairs undertaken not only created inconvenience to people using this street but also degraded the condition of the road in the area. The project will also include the installation of additional catch basins and 100 year storm pipe recommended through the Jackson Creek EA, the waterfront entrance at Simcoe Street, and the remediation of a large Inflow and Infiltration (I-I) related discovery through the downtown I-I project. As described in Report CPFS15-043, the City is currently pursuing external funding through the Federal government for this project. 69

92 Storm Sewer Rehabilitation Program This project will review the latest condition information on the citywide storm sewer network and rehabilitate critical areas identified. In general, the storm sewer rehabilitation program will be allocated to sewers that require attention as a result of inspection information collected. City Wide Storm Water Quality Master Plan Implementation Council, at its meeting of September 21, 2015, in considering Report USDIR15-003, authorized the renaming of the Sewer Surcharge Reserve Fund to the Wastewater Reserve Fund and requested a further report on the matter of a stormwater user rate. 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 MOE related to our existing stormwater facilities throughout the City. 70

93 The Stormwater Quality EA Management Master Plan is developed as part of the overall evaluation and solution to the existing and potential concerns within the City. 71

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 Waste Management Division to better reflect its funding from the Waste Management Reserve Fund. 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. Public Works provide operational services 24 hours a day, 7 days a week. The garage repairs and maintains approximately 610 pieces of equipment for client groups will be the first year for the operations of underground services to occur from the Environmental Protection Division rather than the Public Works Division. As a result, the Public Works budget has decreased in storm sewers and sanitary sewer activity and increased under Environmental Protection. Public Works will continue to provide first point of contact and 24/7 response to lateral services and repairs of concrete and asphalt surfaces as a result of sewer works. 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. The 2016 horticulture program is proposed to remain at the 2015 level of service will see the continuation of an Emerald Ash Borer program. For the purposes of the 2016 Budget, Public Works will continue to cut the same turf grass areas (349 hectares) as was cut in will be the fourth year of a five-year Goose Control program. Funds for this program are included in the Parks maintenance contractual services budget line. For Winter Control, the 2016 Budget anticipates the same lane kilometres expected to be maintained as in 2015; however, at its meeting of September 8, 2015, City Council approved Report USPW which recommended improvements to the provision of winter service. The improvements include the addition of six Temporary winter staff, leasing of equipment and the use of contracted services to haul snow. The increase in the 2016 Winter Control Budget was a result of this approved report. 72

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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 18.3% of the 2016 budgeted amount of $3.0 million. Recommendation That any unused portion of the 2016 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 2016 Winter Control costs exceed the 2016 Budget, funds may be drawn from the Winter Control reserve. 74

97 Upgrade and Replace Playground Equipment Accessibility upgrades will be undertaken in approximately eight playgrounds. These upgrades will include accessible surfaces, paved access and walkways, and benches. In addition, improvements will be made to the following three courts: Bonnerworth Tennis Court, Hamilton Park Basketball Court, and Inverlea Park Basketball Court 75

98 Sidewalk Reconstruction The municipal sidewalk inventory totals 386 kilometers. The recommended budget provides funds to replace about 3,200 linear metres of sidewalk or 0.80% of the existing inventory. Public Works Vehicle and Equipment Replacement and Enhancement The purchases planned for 2016 are all replacement purchases and will be funded from the Public Works Vehicle and Equipment Reserve. Funds are contributed to this reserve from the Operating Budget and the reserve is then used to pay for vehicle/equipment replacements. 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. Changes to the existing buildings plus additional buildings, including winter material storage, will be required. Work has now progressed to the point that the Consultant s preliminary construction estimates to transform the 791 Webber Avenue property into a full service Public Works Operations facility are estimated at $17,000,000. The cost estimates provided will include 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 the Public Works operations. This compares favourably to the estimated $45,000,000 required for a new yard previously proposed on Fisher Drive. 76

99 Urban Forest Strategic Plan On June 20, 2011, Council adopted an Urban Forest Strategic Plan for the City through Report USPW The Plan included a schedule for implementation that required further Council approval. The 2016 Budget provides for $70,000 to implement the plan, and $90,000 to plant trees. 77

100 Transportation Division Operating Budget The Division is responsible for the operation of the municipal transit system, off-street parking lots, including the King Street and Simcoe Street parking garages, as well as control over the on-street parking, 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. 78

101 Public Transit Operations A number of recommendations of the 2011/2012 Public Transit Operations Review were approved by Council through reports USDIR and USDIR Implementation of the recommendations is a phased process that began in the spring of 2013 and will continue into Ridership figures are a key transit statistic and are Peterborough Transit Bus shown in the following chart. Ridership levels in 2015 are expected to recover from 2014 levels although revenues are expected to see a 1-2 % reduction from 2014 as customers are moving to more affordable fare options. Revenues for 2016 are expected to recover to within 1% of 2014 levels as improved cost recovery measures are implemented for Trent University and STSCO services. The draft base budget did not include any new revenue hours of service except for a special New Year s Eve transit service which is proposed for 2015/2016 on a trial basis. As a result of discussions during the budget review sessions, Council approved transit service on statutory holidays. The estimated cost of $154,800 is being funded by increased user fees in the amount of $28,000, and an additional contribution from the Provincial Gas Tax Reserve in the amount of $126,800. Implementation of the new computerized Handi-Van reservation system in 2015 has improved customer service by increasing capacity and bookings by up to 30% and in doing so has increased the number of same day trip requests that can be accommodated. 79

102 No fare increase is being recommended in 2016 for regular passenger service. The budget is based on 131,370 revenue service hours, which are split with conventional transit at 117,250 hours and specialized transit at 14,122 hours. The 2016 Budget includes the continued contribution to the Transit Reserve in the amount of $600,000. The 2016 Budget also includes $154,000 in enhanced service for snow clearing at transit stops as approved by Council as part of the Updated Winter Services Report (USPW15-012). 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 $1.55 million in The funds are placed in a Provincial Gas Tax Reserve Fund and then transferred from the reserve fund to finance authorized expenditures. 80

103 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. Provincial gas tax funds cannot be used to offset expenditures in other municipal departments. For 2016, the full amount of $1,550,000 will be drawn from the Provincial Gas Tax Reserve Fund as well as $126,800 for statutory holiday transit service for a total of $1,676,800 to offset expected costs. Parking Parking operations are projected to have a $484,479 ( $245,200) surplus for 2016 before considering the $661,894 debt service cost incurred for the King Street Garage is the final year remaining on the King Street Garage debenture. The debt for the Simcoe Street Garage was paid in full at the end of The Parking Reserve contribution has been decreased by $100,000 for 2016 as the Reserve has a current uncommitted balance of $304,000. In 2015, staff completed a review of parking fines and fees as part of Report USTR Altogether for 2016, Parking revenues are projected to increase by $174,500 with Fine revenues increasing by $50,000 and general parking revenues by $124,500. Overall, the resulting $177,415 deficit becomes a charge against the general tax levy. The annual deficit is offset by the $1,031,170 grant in lieu expected from the MNR. One of the primary reasons the King Street Garage was constructed was to provide required parking for MNR staff and financial projections at the time assumed the MNR grant, in lieu of taxes, would be used to offset the garage operation costs. Parking control services are provided by Securitas Canada. The current contract has been extended for one year and expires March 31,

104 Traffic In October 2007, Council awarded various contracts for the implementation of the Traffic Signal LED Conversion Program (USTR07-012) to retrofit all traffic signal indications within the City of Peterborough from incandescent lamps to energy efficient LED lamps. The objective of the program was to reduce energy costs and greenhouse gas emissions and to date these objectives have been realized. Traffic Signal LED lamps have an expected life of approximately ten years and come with a five-year warranty. The existing LED lamps will be nine years old in 2016, have no remaining warranty and are approaching the end of their life cycle. Experience in other Ontario municipalities has shown the most cost effective method to maintain these lamps is to bulk replace them once they are seven years old. The replacement program has commenced with the procurement of the LED lamps in 2015 followed by installation in Beginning in 2011, Council directed staff to transfer any unused Traffic Signal Maintenance Budget at the end of the year to reserve. The past contribution to the Traffic Signal Reserve in the amount of $76,500 has been eliminated for The reserve has a current uncommitted balance of $514,000. The Traffic Operations Review project, initiated in fall 2015, is expected to continue in 2016 and will develop recommendations for short term improvements to intersections, signal timing, traffic operational policies, and system wide optimization of traffic flows through enhancements to the City's computerized traffic signal system. Work in 2016 will include public consultation and reporting of the recommendations to Council. As a result of discussions during the budget review sessions, Council approved that a new Traffic Engineering Technologist position be created. The cost of the position for 2016 is $58,000 to be funded by a decrease in contractual services of $20,000 and a transfer from the Traffic Signal Reserve of $38,000 for a net levy impact of zero. Recommendation That any unused Traffic Signal Maintenance Budget, at the end of 2016, be transferred to the Traffic Signal Reserve, subject to the overall year-end position and that if the actual 2016 traffic signal maintenance costs exceed the 2016 Budget, funds may be drawn from the Traffic Signal Reserve. 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. 82

105 The Division will also work with the Engineering and Construction Division, Infrastructure Planning Division and the Planning Department to implement and prioritize new trails, cycling facilities and sidewalk construction. 83

106 Terminal Building Upgrades The approved 2012 Public Transit Operations Review (Reports USDIR and USDIR12-019) recognized the current required renovation needs for the Transit Terminal. The East Wing renovation was completed in the fall of 2015 and included a new modern dispatch centre and upgraded staff facilities. Council, in approving Report CPPS15-033, awarded the Transit 84

107 Terminal West Wing Renovation and included a pre-commitment of the 2016 Budget request. This phase will upgrade the customer service and public waiting areas along with the transit administrative offices. Transit Buses The City currently has a conventional transit fleet consisting of 52 buses as of December This includes three new buses delivered in August 2015 and three buses delivered in November By December 2015, the average fleet age will be 9.2 years and 88% of the fleet will be fully accessible. The 2012 Transit Operations Review recommended acquisition of 15 buses between 2013 and 2015 to reduce the average age of the fleet and ensure that 100% of transit buses are accessible. An additional six buses were recommended to facilitate service expansions recommended in the review. The 2016 purchase of one new replacement bus will leave five new vehicles to be purchased between 2017 and 2018 to complete the vehicle replacement program. 85

108 Simcoe Street Parking Garage Rehabilitation In 2013, a structural review of the Simcoe Street parking garage was conducted with the results indicating structural and mechanical repairs would be required in Tender T was awarded by Council (Report CPPS15-029) in June 2015 for rehabilitation of the King and Simcoe Parking Garages. The repairs at the Simcoe Street Garage will commence in the spring of Funds requested for 2016 will allow for additional upgrades to the barrier walls and guardrails which were identified as deficient but could not be accommodated within the pre-approved project budget. 86

109 Strategic Downtown Parking Management Study The last review of the parking program was completed in The report provided a number of recommendations including increasing both parking fines and monthly permit rates. With eight years passing since the last Strategic Downtown Parking Management Study, much has changed including the emergence of new mixed use development areas in the downtown, the future conversion of the Louis Street Parking Lot to a public square, and the potential elimination of some on-street parking to provide wider sidewalks on some blocks. Report USTR approved by Council, recommended the completion of a Strategic Downtown Parking Management Study to update the previous study completed in

110 Traffic Signal Infrastructure Improvements Initiated in 2005, this is a multi-year program to replace deteriorating traffic signal equipment to meet minimum standards and control increasing maintenance costs. The condition of existing traffic signal infrastructure, primarily in the older areas of the city, is poor. This program includes the replacement of poles, signal heads, pedestrian push buttons, detection equipment and mast arms. 88

111 Traffic Signal LED Replacement Program Pre-approved funds are sufficient to cover the cost of this program and no new funding is required for For future years (2021), the replacement of LED lamps will be 100% funded through the Traffic Signal Reserve. George Street Improvement Project This project will improve the operation of George Street from Sherbrooke Street to Perry Street and implement a Complete Street. When completed, this section of street will better serve all modes of transportation resulting in fewer collisions and formal space allocation for cyclists on the road. For pedestrians, there will be safe crossing opportunities and increased distance between the vehicle travel lanes and sidewalks. This project will be coordinated with planned improvements to Townsend Street as part of the Jackson Creek Diversion Sewer project. An Expression of Interest (EOI) was submitted in August 2015, seeking provincial grant funding under the Ontario Municipal Cycling Infrastructure Program. If successful, up to $325,000 of the capital cost may be eligible for funding. 89

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113 Environmental Protection Division Operating Budget The Environmental Protection Division (EPD) 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 is the first year of the operations of underground services from this Division. Previously these services were provided by Public Works. This accounts for the significant increase in expenditures in the Environmental Protection Division. Phase 4 Construction at the Plant is now complete. This project provides improved management of extraneous flows to the Waste Water Treatment Plant (WWTP) and mitigation of sewage bypasses. 91

114 All WWTP and pumping station expenditures are funded from the sewer surcharge, which is levied 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 draft 2016 Budget assumes a sewer surcharge rate of 95%, the same as in Average Daily Flows Waste Water Treatment Plant Description (est) Average Daily Flows (M 3 ) 41,786 47,334 43,138 44,051 44,251 42,000 Million Gallons per Day The above data reflects the fact that flows to the Plant will fluctuate depending on weather conditions as well as inflow and infiltration. Below normal precipitation in 2010 and 2012 impacted flows to the plant. 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. Pumping Stations The majority of the existing pumping stations have been substantially upgraded during the last four years to meet stringent environmental regulations. Waste Water Treatment Plant 92

115 Equipment Upgrades and Replacements The investment of $632,900 in 2016 toward upgrading and maintaining existing equipment, which is relied upon for safe and efficient treatment of waste water, will ultimately save money in future operational budgets and ensure compliance with increasingly stringent environmental legislation. 93

116 Nelson Landfill Monitoring Program The City, in conjunction with Otonabee South Monaghan Township and Fred Nelson and Sons, operated 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 operating funds are likely and will be better defined in 2016 if a new agreement is reached. 94

117 Harper Road Former Waste Disposal Site Environmental Study/Monitoring Program and Remedial Action Plan for Site Clean-up 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. The Ministry of the Environment and Climate Control has directed the City to file an application for a new Environmental Compliance Approval (ECA) for the site. This process will provide a clear, concise directive outlining provisions to manage the former landfill according to today s applicable laws and standards. Supporting documentation from the detailed Environmental Study conducted in 2012, 2013 and 2014 will be used for the application process. It is anticipated that the newly created ECA will not be issued until sometime in Once issued implementation will start immediately. 95

118 Waste Management Division - Operating Budget The Waste Management Division provides waste collection, processing and disposal programs/services including the collection of recyclables, green waste, garbage and large articles, composting, hazardous waste, electronic waste, and landfill activities. 96

119 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. Total projected tipping fees for 2016 are $3.1 million ( $2.6 million). Disposal rates for loads of 101 kg or more are recommended to remain at $90 per tonne. The County will contribute almost $1.9 million towards the gross costs of the landfill operation and receive approximately $1.5 million in tipping fees revenue for a net cost to the County of $0.4 million. The 2016 contribution to the Waste Management Reserve Fund is $660,000, the same as A 20-year Waste Management Master Plan was approved in February 2013 with a view to increasing diversion from landfill in the most cost-effective manner. The diversion of source separated organics (kitchen wastes) will continue to be investigated in 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 $3.5 million Construction & Transfer of Leaf & Yard Compost Facility is built in 2017, the reserve fund will move into a deficit position and continue in that position for at least ten years. A combination of Capital Levy, debt, and delaying some future years Capital projects will be required. 97

120 Waste Management Program Operating Revenue and Expenditure Projections (2016 to 2025) 98

121 Waste Management Program Capital Expenditures and WMRF Projected Balances (2016 to 2025) 99

122 Peterborough Landfill Site The South Fill Area (SFA) reached capacity in The cell was capped and closed as per the SFA closure plan which included seeding and landscaping to a natural state. Cell 2 of the North Fill Area was constructed and started receiving waste in September Construction of Cell 3 of the North Fill Area was completed in In addition, a ring gas collection system was installed in Cell 2 and the Public Drop-off container area was expanded. The Landfill Gas to Energy project was commissioned in

123 Community Services Departmental Summary - Operating Budget 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. 101

124 Community Services Departmental Summary Capital Budget 102

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126 Community Services Administration Division - Operating Budget 104

127 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 2016 Draft Budget includes a 1% cost of living increase to all service grant recipients. The budget also includes a provision of $50,000 for Special Events and Sponsorships similar to The Community Project Grant program, budgeted at $66,210, 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 amount also includes $25,000 in City support for the relocation of Syrian Refugees and a $20,000 grant for Artspace; both of which were approved by Council as a result of the budget review sessions. The Community Investment Grant Program, budgeted at $210,000, 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 Council-appointed Grant Review Committee, which recommends funding awards for Council approval. Community Service Grants The City s Community Service Grant program was 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. Sustainability The City s contribution to Sustainable Peterborough will increase to $40,000 and has been moved from the Capital Budget to the Sustainability Operating Budget. As will the $50,000 allocation in the Sustainability Capital Budget for the Low-Flow Toilet Rebate Program, that is funded from the Waste Water Reserve Fund. 105

128 Recommendation That any surplus funds at the end of 2016 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 2016, be transferred to the Sustainability Reserve, subject to the overall year-end position, and that if actual 2016 costs exceed the 2016 Budget, funds may be drawn from the Sustainability Reserve. 106

129 Sustainability Projects A capital budget of $125,000 has been established for sustainable projects or to leverage private sector funding. The annual outcome reporting tool for the Federal Gas Tax requires that each municipality, over the life of their Municipal Funding Agreement, demonstrate their commitment to sustainability through the creation of a Community Sustainability Plan and the validation of its recommendations. With the adoption of By-law , City Council committed to championing sustainability in our daily operations and leading our community through the implementation of the priority actions outlined in the Sustainable Plan. 107

130 Canadian Canoe Museum Reinvention/Relocation The Canoe Museum has requested Transition Funding for project planning purposes in 2015 and They anticipate additional funding requirements from all sources in the amount of $270,000 and $200,000 respectively. The Canoe Museum has applied for Trillium funding for this phase. Staff recommend a City contribution of $100,000 in both years to assist with a portion of the total requirement. 108

131 Recreation Division - 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, facility management (of both indoor and 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. 109

132 Marina, Recreation and Beavermead The Peterborough Marina operation includes an 84-slip marina operating over a six-month period, receiving 900-1,000 boats annually. The Marina is projected to generate a modest surplus of approximately $6,700 in Peterborough Marina Effective in 2016, the budget for the Queen Alexandra Community Centre building has been re-allocated to the Property Management Division, with exception of the costs associated with cleaning, supplies, and the facility management agreement with Activity Haven. 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 2016 Recreation Budget for the Campground operation only includes a $3,500 expense for opening and closing processes completed by Public Works. 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. The 2016 Budget includes the transition of the Assistant Manager position from 50/50 funding with Fleming to 100% City funding to better reflect revised responsibilities. Of the $2.8 million gross budget, $0.6 million, or 22.0% are funded by Fleming College, as part of the partnership agreement with the City of Peterborough. The provisions for both heat and utility costs have been increased to reflect actual costs. 110

133 User fees have been reviewed and changed to be on par with the market. Recommendation That any surplus funds at the end of 2016 for the Peterborough Sport and Wellness Centre be transferred to the PSWC Capital Conservation Reserve for future capital improvements. 111

134 Beavermead Campground Park Implementation Council approved the recommendations of Report USEC15-019, dated August 31, 2015, to pre-commit $322,835 to the 2016 Budget towards the work to improve accessibility features, and correct drainage issues and provide services (water and electric) to the 25 central area campsites. 112

135 PSWC - HVAC and BAS Upgrades The 2015 Capital Budget identified two projects: Lighting and Pool Filter Upgrades. Both of these projects will be deferred to future budget years and the funds will be added to this project to install a new BAS System and upgrade and modify the entire HVAC system to make the facility more functional and better meet the needs of the increased users of the facility. Peterborough Sport & Wellness Centre 113

136 Arts, Culture and Heritage Division - Operating Budget As an integral part of the Community Services Department, the Arts, Culture and Heritage Division operates three facilities that serve the community, 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. 114

137 Arts Culture & Heritage Administration/Heritage Preservation Office 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. In 2016, the Arts Culture and Heritage Administration operating budget includes: an increase to the $2,500 to cover redesigning and updating the City s Immigration Portal; an increase of $10,000 (5%) to the HPTRP is proposed to keep pace with the program s growth; and an increase of $10,000 to the plaque budget to begin a maintenance program for commemorative markers. 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 2016 Budget shows a net increase of 4.1% ($25,005) which is the result of staff compensation increases and a.32 FTE increase in the part time staff compliment. The latter reflects a transfer of paid time from contract fee-for-service to bargaining unit personnel. Art Gallery The Art Gallery of Peterborough (AGP), incorporated in 1974, is a non-profit 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. In 2016, the Art Gallery of Peterborough will focus on expanding its profile and building connections into our extended community following the facility renovation, and temporary move of staff and the permanent collection, to be completed in The AGP Board of Directors has revised Board committee Terms of Reference with the goal to enhance development of the gallery s programs and fundraising initiatives. The newly formed Outreach and Engagement Committee will work with staff to develop opportunities which engage our community and encourage volunteer involvement. 115

138 Library The draft budget includes some increases to staff training as a number of staff retired in 2015, and their replacements need to be trained in their new positions. It also includes increases to programming budgets, as they are currently funded by donations from the Friends of the Library, who will cease operations during the renovation period. Due to the Library renovation, and the move to the temporary location, the library revenue from room rentals will decrease. Other revenue decreases were made to accurately portray actual revenue received in 2015, such as microfilm revenue. Hospitality revenues, such as food and catering have increased due to planned events in 2016 surrounding the move to a temporary location. Peterborough Public Library 116

139 Municipal Cultural Plan The MCP was adopted by Council in April Throughout , staff worked to achieve substantial completion on a number of signature objectives. In 2016, staff will continue to implement the plan and collaborate with staff from other divisions on the MCP objectives and recommendations. 117

140 Additional Library Space The Library Space Needs Study, completed in 2013, provided the context for a refresh and expansion of the Main Branch. In 2015, Council approved the conceptual design and authorized preparation of detailed design and tendering (Report CSD15-012, June 1, 2015). The project includes: $5.8 million in renovations and upgrades; $1 million in foundation waterproofing and slab repairs; and other upgrades to infrastructure and building systems to extend the building's life. The balance of the funding included in the 2016 Capital Budget will expand the facility by 9,300 square feet (net). Collections Acquisition An annual amount is provided to replace the Library s collection. Due to space constraints, the Library maintains a zerogrowth practice for the physical collection. For every item purchased, an equivalent one is withdrawn. The downloadable collections and electronic resources provide a means to expand the collection. 118

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142 Art Gallery of Peterborough (AGP) Facility The Lundholm Feasibility Study recommended a future redevelopment of the Art Gallery of Peterborough which would see additional space for public events, rental opportunities, education activities, gallery shop and exhibitions as well as a collection storage and work area. 120

143 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. The Arenas Division consists of four arenas: Peterborough Memorial Centre, Evinrude Centre, Kinsmen Civic Centre and Northcrest Arena. 121

144 The Division continues a proactive approach in 2016 by strengthening our relationship with agents, promoters and event organizers with a goal of increasing the number of special events held in Arena facilities. Operations at Northcrest Arena continue to stabilize as a result of the sand floor base installed in the 2013/14 winter season, although maintenance costs of the aging facility increase. There are eight years remaining on the Peterborough Memorial Centre debenture which matures in Annual principal and interest payments amount to $947,142. Recommendation That any surplus funds at the end of 2016 for Arenas be transferred to the Arena Equipment Reserve for future equipment purchases. 122

145 Facility Upgrade Memorial Centre The 2016 provision is for: Club Lounge Flooring Replacement, Video Scoreboard Winch/Cable Support System Replacement, Walk In Fridge/Freezer Replacement and a Pizza Oven. 123

146 New Arena Facility At its meeting of December 7, 2015, Council approved the recommendation of the Budget Committee to advance the timing of the New Arena Facility as presented in the Draft 2016 Budget by allocating $1.5 million to the project in The revised project timing is as follows: Year Value Description 2015 $500,000 Phase I Feasibility Study, Schematic Design, and Costing Study 2016 $1,500,000 Phase II Detailed Design and Tendering 2017 $11,000,000 Phase III - Construction and Contract Administration 2018 $20,500,000 Phase III (cont'd) - Construction, Contract Administration, and Commissioning This project is eligible for development charges that address community growth needs; however, the balance of funding must be secured through a tax supported debenture, infrastructure funding, sponsorships and user contributions over 20 years. There are no eligible infrastructure funding programs available currently; however, staff anticipates an infrastructure funding program may be announced in that would assist to finance this initiative. The amount of senior government funding is uncertain, but the arena project must be considered "shovel-ready" when funding opportunities become available. Resources identified in 2016 will prepare the project to be considered for infrastructure funding. 124

147 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. For 2016, the total $65.2 million gross expenditures for the Division are split between Social Assistance at $52.0 million and Children s Services and Community Social Plan at $13.2 million. 125

148 126

149 Social Services Gross expenditures are funded from a number of sources as set out in the following chart. 127

150 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 128

151 Social Assistance For the 2016 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 continuation of the upload of Ontario Works (OW) mandatory benefits. Continuing to assist the Province with improving the new provincial Social Assistance Management System (SAMS). Determine necessary local business process changes required due to the introduction of SAMS. In 2016, the Province is expected to introduce new ways to fund employmentrelated client expenses. Staff will need to work through the service and financial impacts once the details are communicated. Continuation of the allocation of upload dollars to the discretionary benefits budget to reduce the reliance on the Social Services Reserve to pay for the revised policy from 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. Completion of the office renovations during early Co-leading the Healthy Kids Community Challenge with the Peterborough City- County Health Unit until March 31, Ontario Works and Employment Assistance Administration The funding model for Ontario Works (OW) and Employment Assistance Administration and Client Services allows for more provincial subsidy than the municipality is currently using. For 2016, it is estimated that the City could allocate an additional $3.1 million of gross spending in the 2016 OW admin budget, which could provide an additional $1.55 million in provincial subsidy but this would require municipal investment of $1.55 million to cover the other 50%. Staffing changes in the OW and Employment Assistance program in 2016 are minimal. There is a request of a 0.4 FTE increase that would convert a position that is currently a permanent part time 0.6 FTE to a full time position. This position leads Training, Development and Quality Assurance for the Social Services Division and is important to continue improving business practices and processes that ultimately improve work flow and customer service. 129

152 The new provincial database for Ontario Works and Ontario Disability Support Program has steadily improved since its implementation in November 2014, but there are still many concerns that need to be addressed. The monthly claims reconciliation is still not working, but a beta testing process has begun and it is expected to be available by early There are still some questions about the accuracy of some financial and statistical reports and the Province continues to work with municipalities to get them fixed. Staff continue to review and analyze information coming from SAMS and as improved information becomes available, adjustments will be made. In the 2014 Provincial budget, it was announced that the Ministry would be changing the way it funds employment-related benefits to municipalities. This initiative will not be implemented this fall as announced in February 2015, and no firm date has been given. The Province is proposing to replace seven existing employment-related benefits with a single benefit, to stream-line the differing rules and amounts for each benefit, to a single benefit that can meet each client s unique needs and employment goals. Currently there is no information on the funding distribution model; and as such, the financial impact for 2016 is unknown. Provincial Upload In 2010, the Province began the uploading of Ontario Works related 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. The following chart shows the upload rates to full upload in 2018: Municipal Share Provincial Share Ontario Works Cost Sharing of Basic Financial Assistance Ongoing 19.4% 18.8% 17.2% 14.2% 11.4% 8.6% 5.8% 2.8% 0% 0% 80.6% 81.2% 82.8% 85.8% 88.6% 91.4% 94.2% 97.2% 100% 100% In 2016, the value of the upload for the City is estimated to be $869,116. Of this amount, $546,150 has been reinvested within the Division, with the balance used to address other financial pressures across the City in the 2016 Budget. 130

153 Ontario Works Mandatory Benefits Caseloads in both the City and County appear to be leveling out; therefore the budgeted average caseload will remain at 3,270 for the City and 692 for the County. As a result, 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 2015 Provincial budget, the Province announced changes to the Ontario Works mandatory benefits, including a 1% rate increase, and an increase of $25 per month per case for singles. These changes have contributed to an increase in both the City s and County s budgeted cost per case. Details are shown in the chart below. 131

154 The following Chart provides supporting calculations for the OW benefits. City and County OW 2016 caseload and cost per case Ref Description City County Total Budgeted Case Load 3, ,962 2 Allocation of Total 83% 17% 100% Projected Actual Case Load 3, , Budgeted Case Load 3, ,962 5 Allocation of Total 83% 17% 100% Case Load Change Over 2015 Budgeted Case Load Increase/(Decrease) Over % 0.0% 0.0% Budgeted as % Case Load Increase Over 2015 Projected Actual Case Load Increase Over 2015 Projected Actual as % 0.0% 0.0% 0.0% Budgeted Avg. Monthly Cost Per Case $ $ Year to Date Actual Avg. Monthly Cost Per Case March 2015 $ $ Budgeted Average Monthly Cost Per Case $ $ $ change over 2015 Budgeted $8.57 $ % change over 2015 Budgeted 1.2% 2.5% 15 Total net cost based on caseload $27,395,000 $5,766, Provincial Subsidy at 94.2% $(25,806,090) $(5,431,572) 17 Net Cost $1,588,910 $334,

155 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 2016 is the uploaded percentage or 94.2% ($9.42). The Municipality has committed to funding approximately an additional $5 per case per month of the revised City s Discretionary Policy implemented May 1, During the 2014 budget process, City Council approved increasing the funding from the tax base by $80,000 per year for 5 years, to 2018 to fund the City portion. For 2016, to assist with keeping the tax increase down, only $40,000 was added to the tax base. The balance of the funding required for the City s discretionary benefits, after the provincial subsidy is factored in, will come from the Social Services reserve. For 2016, there is a budgeted draw from reserves for discretionary benefits of $61,814. Altogether, for budget years 2013 to 2016, it is estimated that $235,000 will have been drawn from the reserve to help fund costs for discretionary benefits. At its meeting of December 7, 2015, Council approved the recommendation of the Budget Committee to increase discretionary benefits in the amount of $50,000 for adult dentures and $50,000 for recreation subsidy for a total increase of $100,000. Community Homelessness Prevention Initiative Late in 2014, the Province announced that the Community Homelessness Prevention Initiative (CHPI) funding for Peterborough would be $3,314,500 for the next two fiscal years (April 1, 2015 to March 31, 2017), which has brought some stability to the program. The Housing Stability Fund (HSF) continues to be the area of most demand within the CHPI program. To sustain 2015 HSF funding levels to help meet the demand for emergency housing needs within the community, an additional $153,077 over what the City and County have contributed in the past is being requested for 2016; an additional $100,000 draw from City reserves, an increase of $27,054 to the City tax base and an additional $26,023 from the County (over the maximum contribution of $204,000 as noted in the CMSM cost share agreement). Children s Services As of September 2014, all schools are offering full day kindergarten (FDK). To continue to assist child care programs with the impact of past and future changes, the Best Start unconditional grant that is being held in reserve will continue to be used. $200,000 of the unconditional grant has been budgeted again in 2016 to assist with the transition. If the full $200,000 is used, there will be $180,806 remaining in the reserve at December 31,

156 Since the implementation of FDK, child care programs have been reviewing the new realities of child care and have been making changes to their licences so that they may remain viable. As a result, licensed child care spaces have increased by 171 in the City and 160 in the County. These increases have resulted in the cost share of Children s Services between the City and County to change from 74%/26% in 2015 to 72%/28% in Community Social Plan The Community Social Plan (CSP) program works to implement socio-economic planning and community development activities across Peterborough city and county. Identifying and developing local solutions to service gaps is the top priority of the CSP. CSP staff also coordinate senior s activities within the city and supports the newly created Peterborough Council on Aging. The CSP budget cost share continues at a 50/50 split between the City and County for support to community partner agencies and seniors program funding, and a 40/60 split for the balance of the CSP program expenditures. Some expenditures are budgeted to be covered by the joint CSP reserve in 2016, including $15,000 to support the Healthy Kids Community Challenge and $43,300 to support the Age-Friendly Plan. At the end of 2016, the balance in the CSP reserve is estimated to be $131,425. 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 and youth. The Ministry of Health and Long Term Care is funding the initiative and municipalities were required to be the lead applicant. Peterborough was chosen as one of 45 communities to take part. Funding of $825,000 was awarded and is to be used from now until March 31, 2018 to assist with activities based on specific healthy behaviour themes. Themes will promote the protective factors for healthy weights for children and youth such as eating a healthy breakfast, getting adequate sleep and being physically active. Social Services and the Peterborough County-City Health Unit will be chairing the working group for the initiative and the City, County, townships and First Nations in our region will all be involved under the governance of Sustainable Peterborough. An Age-Friendly Plan is being created for the city and county of Peterborough. This plan will develop strategies for improving the quality of life of our aging community while also celebrating and promoting the positive work already in place for seniors. This project is made possible through a 3-year Ontario Trillium Foundation grant along with support from the City and County. This is a collaborative project being administered by the Municipality of Trent Lakes but delivered by the Community Social Plan and Social Services Division. 134

157 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 heavily relied on to assist with the demand and transition of the changes, as well as borrowing approx $2.4 million to fund the office improvements (to be paid back over a period of 10 years). The following shows the draws and the expected balance at the end of 2016: Balance beginning of the year $2,039,966 Discretionary Benefits $ 61,814 Homelessness (CHPI) $ 100,000 Loan - Office Improvements $ 500,000 Brock Mission (capital project) $ 207,500 Expected Draws $ 869,315 Estimated repayment of loan P&I ($ 278,095) $ 591,220 Projected Balance end of year $1,448,746 (The estimated amount of Loan to be paid back at the end of 2016 is $2.2 million) Overall Net City/County Share Overall the County s net share of the Social Services budget has decreased by $51,824 or 2.4% and the City s net share has decreased $322,966 or 3.9%. Recommendations That any unused Homelessness net budget at the end of 2016 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 2016 Homelessness costs exceed the 2016 Budget, funds may be drawn from the reserve. That any unused Community Social Plan net budget at the end of 2016 be transferred to the Social Services Community Social Plan 40/60 Reserve for future program development, subject to the overall year end position and that, if actual 2016 Community Social Plan costs exceed the 2016 Budget, funds may be drawn from the reserve. That any remaining unused Social Services net budget at the end of 2016 be transferred to the General Assistance Reserve, subject to the overall year end 135

158 position and that, if actual 2016 Social Services costs exceed the 2016 Budget, funds may be drawn from the reserve. 136

159 Social Services Office Leasehold Improvements In August 2015, the renovation and supply and installation of new office furniture for Social Services was awarded. Work began in September 2015 The project includes the re-design of the first and second floor of the Charlotte and Simcoe Street buildings. The design includes layout changes for the reception area, including moving reception to the first floor, adding some additional workstations on the second floor, and opening up part of the Simcoe Street first floor for a staff meeting room. These changes will ensure the space on these floors meets the Accessibility for Ontarians with Disabilities Act (AODA) standards and will improve client service flow and will result in the most efficient use of the existing space possible. The project budget also includes furniture replacement for staff and client use to maximize the space and meet ergonomic and accessibility requirements. Phase 2 will take place in 2016 and includes some minor renovations to the third and fourth floors, including improvement of lighting, wall and floor coverings. 137

160 Brock Street Mission Revitalization/Supporting Housing The Housing and Homeless plan itself 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 does not meet accessibility codes, all mechanical and electrical systems must be replaced, upgrades to hydro and water systems are required, the building is not fire-separated between occupancies and the building envelope is in poor condition (walls, roof, windows). Through the architectural review it has been determined that a tear down and rebuild of the building on the current site would be the most cost effective way to improve the facility and address accessibility issues. Through PLHD15-002, Council has conditionally approved $1.5 million of the Investing in Affordable Housing dollars be allocated to Brock Mission men's shelter for the addition of single room occupancy rental units for men. $500,000 is proposed as the Social Services contribution towards the cost of the shelter improvements. This is proposed to be cost shared between the City and County using the caseload split of 83/17 with the City share of $415,000 to come from the Social Services Division General Assistance Reserve in two installments of $207,500 each in 2015 and The remaining cost of the building will be the responsibility of Brock Mission through financing and a capital campaign. 138

161 Planning and Development Services Departmental Summary - Operating Budget The Planning and Development Services Department includes the Planning Division, Building Division and the Housing Division. The Department also oversees the operation of the Peterborough Municipal Airport and the development of the City's Industrial Parks. 139

162 Planning and Development Services Departmental Summary Capital Budget 140

163 141

164 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 administration of the sale and purchase of municipal property and 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. 142

165 143

166 Central Area Master Plan (CAMP) Implementation Phase The Official Plan directs that the City pursue a comprehensive program of downtown enhancement. The 2016 request provides for the following: a) CAMP #10 - Annual maintenance and safety fund - $50,000 b) CAMP #17 - The priority functions of the Downtown include Major Office and Institutional Uses. This project will provide $100,000 seed funding per year for the next three years to establish an Entrepreneur Centre in the downtown. Otonabee River Trail - Crescent Street Phase Del Crary Park to Little Lake Cemetery A preliminary construction cost estimate for the continuation of the Otonabee River Trail from The Point in Del Crary Park to the Little Lake Cemetery, consistent with the Little Lake Master Plan, is $2.0 million. An application was filed under the Canada 150 Community Infrastructure Program seeking $500,000 to support the completion of this project. Property Acquisitions For 2016, the property acquisitions project includes an allocation of $500,000 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 PLPD to establish a new reserve for the purchase of the Naval Association property. This will be required for approximately seven years. Trail Development The 2016 request is for the CP Rail spur line acquisition, Monaghan Road to Townsend Street 144

167 Charlotte Street Renewal and Louis Street Urban Park The scope of the renewal project has changed since first planned as the portion of Charlotte Street from Park Street to Aylmer Street is now part of the Bethune Street Project being led by Utility Services. The portion from Aylmer Street to Water Street will be coordinated with the Louis Street Urban Park and will include streetscape improvements on the east side of George Street in front of Market Hall. Features of the Urban Park as detailed in Report PLPD include: a large oval hard surface for multi-purpose use in the summer and an ice skating surface in the winter; multi-purpose building with a stage, change room and public washrooms; a public art display at the north end of the park; large tree plantings under which there will be passive seating areas; water geysers; and an area for the Downtown Farmers Market. At its meeting of December 7, 2015, Council approved the recommendation of the Budget Committee to allocate $4.2 million to the project in The project budget has been adjusted accordingly. 145

168 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 2016 request is for the following: - Facade Improvement - $100,000 - Municipal Incentive - $100,000 - Residential Conversion and Intensification - $100,

169 147

170 Innovation Cluster - Infrastructure Trent University has reserved approximately 65 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 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 is required to bring municipal services to the site. In 2015, D.M. Wills prepared a detailed cost estimate of $4.5 million for this phase of the project. There are funding partners available to support this phase. 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 over time through ground lease payments. An initial phase budget of $1.5 million has been established for this purpose. 148

171 Direct Foreign Investment 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 especially targeted at direct Chinese investment in Peterborough. The funding request is over and above the core funding to Peterborough Economic Development (PED) as it represents a market that PED cannot readily service due to language barriers. The project involves the retention of experts in Chinese-focused investment opportunities. 149

172 150

173 Housing Division - Operating Budget 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 20 nonprofit providers. 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. 151

174 Of the 2,000 social housing units, about 80% are rent-geared-to-income and 20% are market rent units. As of September 2015, 1,570 households were on the waiting list for rent-geared-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 average current value assessment to calculate the City-County proportionate housing share. In 2016, the County s share is 54.2% (54.0% in 2015). 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 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. Recommendations That any surplus in the 2016 Housing Operating Budget at the end of 2016 be transferred to the Housing Reserve, subject to the overall year end position and that, if actual 2016 Housing costs exceed the 2016 Budget, funds may be drawn from the Housing Reserve. That any surplus in the 2016 Housing Choice Rent Supplement Program at the end of 2016 be transferred to the Housing Choice Rent Supplement Reserve, subject to the overall year-end position and that, if actual 2016 Rent Supplement costs exceed the 2016 Budget, funds may be drawn from the Rent Supplement Reserve. 152

175 Emergency Capital Repairs The $125,000 per year is a placeholder that deals with emergency repairs only until a strategic asset management plan can be considered by Council. This capital reserve will accumulate, with City and County contributions based on the weighted assessment sharing ratios, as long as no emergency repairs are required to be funded within the year. 153

176 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 Included in 2016 is support for The Mount Community Centre redevelopment of 1545 Monaghan Road. The Mount Community Centre has been designated as a Municipal Housing Facility (MHF) in accordance with By-law Municipal incentives were approved for this project and include $400,000 capital contribution to be paid over 2015 and

177 Airport Division - Operating Budget The Peterborough Airport is a very active industrial park, containing 19 businesses that employ over 300 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 have increased from approximately 35,000 to 70,000 per year. Loomex Property Management has completed the third year of the Airport Management and Operations Contract which has eight years remaining, following a three year extension in The Contract guarantees firm pricing for eight years and places the burden of supplying, maintaining and replacing equipment on the Contractor within the contract amount. This ensures predictability in operating expenses for the next eight years. The 2016 Operating Budget reflects additional day-to-day costs of approximately $100,000. This increased amount is attributed to maintaining new infrastructure, hydro, contractual services as per the Airport Management and Operations contract and maintaining the Transport Canada regulated obstacle limitation surface requirements. The property taxes are estimated to increase by $40,000 which is recovered from the tenants. Revenue Projections for 2016 have been adjusted to reflect revised fees and new charter fees increasing revenues by $33,000. Excess development review fees are transferred to a reserve to be used for future airport development related expenditures. 155

178 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 begins an annual contribution of $10,000 for an external quality assurance audit to be completed every 3 to 4 years. Recommendation That any excess Airport development review fees at the end of 2016 be transferred to the Airport Development Review Reserve for future Airport Development related expenditures and that, if the 2016 Airport development review costs exceed the review fees, funds may be drawn from the Airport Development Review Reserve. Boeing at Peterborough Airport 156

179 Airport Industrial Park East of Airport Road Expansion In response to market demand and opportunity there is a growing need to make ready the next phase of industrial lot expansion. The priority for this expansion will be to accommodate large floor plate users that cannot be easily placed within the existing industrial area without further hangar consolidation. This project was envisioned as a two-year construction program. Detailed design work has been completed more accurately projecting the quantities of fill required, adjusting the cost estimate to $4.9 million over two years. A portion of Airport Road leading to the expansion area is expected to be conveyed to the City from the County becoming an internal airport road. This project will include street lighting for the internal road for an enhanced entrance to the businesses. 157

180 The clearing and grubbing of approximately 20 acres of property and the placement of substantial engineered fill to create industrial lots is to be completed in Year 1. Year 2 will involve the construction of a new public apron and the extension of municipal services to the new lots. Commercial and General Aviation Lot Preparation The Airport Expansion Project prepared approximately 40 serviced acres of land for industrial and commercial expansion. Parcels of land will then be leased according to user requirements as has been the long-standing Airport practice. This capital project provides a funding source to cover Airport responsibilities associated with tenant specific requirements. 158

181 Airport Marketing The Airport Expansion Project represents the largest tax supported construction project incurred at one time in the City s history. It also represents the single largest investment in economic development by the City. The Airport Marketing Project earmarks a dedicated funding stream for an enhanced three year marketing effort, over and above other regional marketing activities, to maximize the City s return on investment. These funds will be used to provide specialized marketing of the newly expanded Airport. 159

182 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 2015 was consistent with overall budget expectations. Economists suggest limited growth in The 2016 Budget includes the second 10% adjustment to the permit fee schedule to ensure that revenues keep pace with inflationary costs within the Division, including the salary burden of qualified inspectors. This is expected to result in 2016 Building Permit revenues of approximately $1.56 million. Recommendation That any unused Building Inspection Budget at the end of 2016 be transferred to the Building Division Reserve and that, if actual building inspection costs exceed the 2016 Budget, funds may be drawn from the Building Division Reserve. 160

183 Financial Services Other Financial Summary Operating Budget The Capital Financing Costs and other financial section sets out a number of corporatetype expenses that are not attributable to any particular Department, but which, for the most part, are administered by the Corporate Services Department. 161

184 Capital Financing Costs Tax Supported Debt Charges The $9.5 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 2016 from current or previous years approval. Tax Supported Debt Charges exclude debt service payments recoverable from other non-tax sources such as Development Charges, Parking Reserve Fund, Court House lease payments, Waste Management Reserve Fund, Arena user fees and the Waste Water Reserve Fund. At its meeting of December 7, 2015, Council approved an additional 0.5% tax increase in the all-inclusive rate over and above the 0.5% recommended for the capital component in the Draft Budget. As a result, Tax Supported Debt Charges are up 18.9% over Given the relatively low cost of borrowing in the marketplace and the need to move forward with badly needed capital works, the increase represents a full 1.0% of additional capital financing, rather than a portion of the 1.0% being used to increase capital levy. 162

185 Capital Levy The $10.6 million Capital Levy provision represents the amount of money raised in the 2016 Operating Budget to finance the 2016 Capital projects. Additional details are provided in the 2016 Capital Financing Supplementary Information section of the Highlights Book. As approved by Council through the 2016 Budget Guideline Report CPFS15-036, an additional $2.1 million was redirected from the capital levy traditionally set aside for the Flood Reduction Master Plan in recognition of the fact that at the present time, there is sufficient approved funding in place for the flood mitigation projects to continue throughout 2016 without infusing the whole $2.5 million of new funds into the program. Recommendation c) of the Report read as follows: That $2.1 million of the $2.5 million in Capital Levy traditionally set aside for the Flood Reduction Master Plan Capital Levy, not be used for the Flood Reduction Master Plan for the 2016 Budget year and be available for other capital projects. Transfers to Reserves and Reserve Funds A $0.4 million portion of the 2016 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 2016 Capital Budget. A $2.5 million portion of the 2016 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 2016 Capital Budget. 163

186 Property Taxation Costs ($3.3 Million) Tax Credit for Low Income Seniors and People with Disabilities Through three separate programs, this activity provides $132,700 in funding to protect low-income seniors and low-income people with disabilities from tax increases. The amount of the 2016 credit is based on a formula per property that limits the net tax levy increase (after considering the credit), from 2015 to 2016, to no more than 2%, and the amount of credit is capped at $561. Rebates to Registered charities The 2016 Budget provides $350,000 to provide a tax rebate to registered charities 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 $0.9 million and $0.35 million for Vacancy Rebates provide for a full $1.3 million of municipal tax loss due to assessment appeals and tax reductions/cancellations that may occur under various sections of the Municipal Act. The provision has not been increased from Any surplus or deficit budget at the end of the year is netted to a reserve for tax write-offs that had an unallocated balance of $592,998 as of December 31,

187 Municipal Property Assessment Corporation The $966,536 provision for the Municipal Property Assessment Corporation (MPAC) reflects an increase of 0.9% over 2015 amounts as estimated by MPAC. MPAC is responsible for assessing all property in Ontario and operates under the authority of the Municipal Property Assessment Corporation Act. 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. The 2016 Budget provision of $384,000 includes the following incentives: Recommendation Brownfields Tax Assistance Program $160,400 Brownfields Rehabilitation Grant Program $124,600 $285,000 Central Area Revitalization Grant $99,000 Total $384,000 That any adjustment to the City s 2016 requirement for the Municipal Property Assessment Corporation (MPAC), be netted against the City s 2016 General Contingency provision. 165

188 Other Expenditures 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. Insurance and Risk Management The $811,750 insurance provision includes $410,000 for estimated deductible payments; $219,950 for premium payments for corporate coverage and $55,700 for broker fees. Any surplus or deficit budget at the end of the year is netted to an Insurance Reserve, which has a current balance of $1.4 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 $12.09 psf, the City is responsible for the difference, which equates to an annual payment of $202,

189 Contribution to Doctors Recruitment Incentive Reserve The current balance in reserve fund is approximately $36,500. A provision of $80,000 is included in the draft budget to fulfill future expected commitments. Contingency Provision The $0.8 million contingency provision is included for legal, personnel and other contingency items. Additional details will be provided during the Budget Committee meetings. 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. Recommendations That any unused portion of the 2016 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 2016 tax write-off costs exceed the 2016 Budget, funds may be drawn from the Allowance for Doubtful Accounts Reserve. That any unused Employee Benefits Budget at the end of 2016 be transferred to the Employee Benefits Reserve, subject to the overall year-end position, and that, if actual 2016 employee benefits exceed the 2016 Budget, funds may be drawn from the Employee Benefits Reserve. That any unused Insurance Budget at the end of 2016 be transferred to the Insurance Reserve, subject to the overall year-end position, and that, if actual 2016 insurance costs exceed the 2016 Budget, funds may be drawn from the Insurance Reserve. That any unused 2016 Contingency Budget at the end of 2016 be transferred to the Capital Levy Reserve to be used for Capital works subject to the overall 2016 year-end position. 167

190 Transfers To Organizations For Provision Of Services Summary Operating Budget 168

191 Peterborough Police Services - Operating Budget 169

192 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 The Police Board expenses of $356,920 does not include remuneration for members of the Police Services Board. 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 Guideline for Police Services The 2016 Guideline Report included recommendation (e) which read as follows: That the draft 2016 Operating Budget reflect a 3.8% increase in the net Peterborough Police Services Budget to be accommodated within the 2.00% general increase, and any increase in the net Police Services budget beyond the 3.8% be addressed by Council as part of the detailed 2016 Budget deliberations to occur in November of The 2016 Draft Budget reflects a 2.7% ($621,334) increase for Police Services and is within the guideline established by Council. 170

193 Recommendations That any unused Police Services Legal fees Budget at the end of 2016 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 2016 Police legal fees costs exceed the 2016 Budget, funds may be drawn from the Policing Legal Fees Reserve. That any unused Police Services Budget at the end of 2016 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 2016 Police Services costs exceed the 2016 Budget, funds may be drawn from the Police Special Projects Reserve. 171

194 Various Police Capital Projects The Police Capital Budget includes $256,500 for seven Police cruisers, and $254,290 for various other computer hardware, software and equipment. 172

195 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 Peterborough Lakefield community. The process is fundamental in thinking about the staffing, resources, and organizational arrangements needed to meet present and future demands of the Police Service. A portion of the cost is recoverable from Development Charges. The next Business Plan is scheduled for

196 Fairhaven 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 long-term 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 twenty-years 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 will be paid over 20 years as 174

197 a $10.35 per bed-per day subsidy. This provincial subsidy would amount to $956,000 annually and would be allocated toward the debt repayment. The balance of the debt repayment was to be paid for through operating revenues, operating surpluses (reserve transition fund), and the City/County financing commitment. The City s commitment expires in Operating Support - $626,670 Based on discussions with management at Fairhaven, it is probable that Fairhaven will be facing numerous budgetary pressures in 2016 that requires upwards of $940,000 in municipal support. If this financial situation were to transpire, the City s portion would be $626,670. 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 missions of the Peterborough County/City Paramedics are: 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. 175

198 The City s portion of the PCCP expenses for 2016 has been budgeted at $4.5 million or a 4.9% increase over the 2015 Budget. The cost share between the City and the County is based on population as per the 2011 census. The City s share is 58.32%. The 2016 budgeted amount is based on preliminary estimates only. A final budget is expected early in County staff will attend a Budget Committee meeting to answer questions. Recommendations That any adjustments to the City s portion of the 2016 Peterborough County/City Paramedics Services Budget be netted against the 2016 General Contingency Provision. That any unused Peterborough County/City Paramedics Services (PCCP) Budget at the end of 2016 be transferred to the PCCP Reserve, subject to the overall yearend position, and that, if the actual 2016 PCCP costs exceed the 2016 Budget, funds may be drawn from the PCCP Reserve. 176

199 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. The budget is an estimate as the ORCA board has not yet approved the 2016 Budget. It is anticipated that the Base Levy will increase in the range of 2%-3%. The $721,944 amount is made up of the following items: Base levy - $686,415 Source Water Protection - $28,000 City s portion of Special Capital Levy Millbrook Dam - $7,529 Recommendation That any adjustments to the City s portion of ORCA s 2016 Budget, based on the final approved ORCA Budget, be netted against the City s 2016 general contingency provision. 177

200 County/City Health Unit Operating Budget The Health Unit 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 2016 budgeted contribution is $1,216,752, which represents a 2.0% increase over the 2015 amount. The amount consists of a base budget of $1,140,935 plus $75,817 for the City s share of expected occupancy costs of 185 King Street. The budget is an estimate as the CCHU board has not yet approved a 2016 budget. Recommendation That any adjustments to the City s portion of CCHU s 2016 Budget, based on the final approved CCHU Budget, be netted against the City s 2016 general contingency provision. 178

201 Peterborough Economic Development (PED) Peterborough Economic Development is the regional economic development organization contracted to provide a variety of economic development services for the City and County of Peterborough. 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 58.32%. The 2016 budget for PED funding support has been set at $930,749 or 2.0% higher than the 2015 budgeted base level of $912,499. The budget shows a reduced contribution from the City as 2015 included a one-time incremental contribution request in the amount of $50,000 to execute the Travel Media Association of Canada Conference. Peterborough Humane Society The City and Peterborough Humane Society (PHS) entered into a 5-year agreement in 2014 ending in PHS provides animal control services including enforcement of the City's animal control by-laws and provincial legislation. In addition PHS operates the City's Pound and issues dog licenses. 179

202 The City pays an all inclusive price for the services and PHS retains Pound fees; destruction and disposal fees; dog license fees and 50% of fine revenue collected. Primary Health Care Services Peterborough Primary Health Care Services of Peterborough (PHCS) is a non-profit organization that was created in 2005 to act as the coordinating agency for the Peterborough Networked Family Health Team. Today it supports over 50 health professionals working in primary care in Peterborough County all of which are newly funded positions that did not exist before the creation of Family Health Teams. As of July 2015, the delivery of service for the Doctor Recruitment Program moved from PED to the Primary Health Care Services of Peterborough. The $17,496 budget represents an increase of 2% over the 2015 annualized amount. 180

203 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. 181

204 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. Recommendation Budget Levy $292,829 $298,685 That the 2016 Budget request representing the levy required by the Downtown Business Improvement Area of the Corporation of the City of Peterborough during the year 2016 totalling $298,685, be approved. City Contributions to the DBIA In addition to collecting the levy from members of the DBIA, the City s 2016 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 Page Ref. Description USD/Public Works 73 Street Cleaning $96,400 $96,400 Other Expenditures 164 DBIA In-kind Services $27,500 $27,500 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. 182

205 Village Business Improvement Area (VBIA) The VBIA has submitted a budget for 2016 in the amount of $16,380 as follows. Recommendation Budget Operating $11,400 $11,380 Capital $5,000 $5,000 Total $16,400 $16,380 That the 2016 budget request representing all sums required by the Village Business Improvement Area of the Corporation of the City of Peterborough during the year 2016 totalling $16,380, be approved. 183

206 Corporate Revenues Summary 184

207 Investment Revenue The 2016 Budget is $1.9 million, a $142,500 increase over 2015 and is based on average investment balances of $120.0 million and an average investment return of 1.6%. Payments in Lieu The 2016 payment in lieu estimates of $3.2 million reflect an overall 5.5% increase over 2015 levels and is mostly the result of realigning budgets to reflect previous year actual amounts received. Utilities Group of Companies Revenues The $5.4 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 at least 3% per annum Surplus Carried Forward as 2016 Revenue The 2016 Budget has been prepared assuming a surplus from 2015 operations of $100,000. Recommendation That any net surplus funds, after the disposition of the recommendations in this report, from 2016 operations in excess of $100,000 be transferred to the Capital Levy Reserve to be used for Capital works. 185

208 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. $16.0 million Sewer Surcharge to be raised The 95% Sewer Surcharge Rate, coupled with increased water rates and some growth, means the City will raise $16.0 million in sewer surcharge revenues in 2016 ($15.1 in 2015). The amount of sewer surcharge that can be transferred into the Waste Water Reserve Fund to finance Capital works will increase by $0.9 million to $6.3 million. Average Sewer Surcharge payable increases by $9.33 (2.2%) When the estimated 2.2% water rate increase for 2016 is considered with the 95% sewer surcharge rate, the average house will experience a $9.33 increase in their sewer surcharge annual amount payable over the 2015 level. The rates and levies are summarized in the following Chart. Comparative Sewer Surcharge Rates and Levies For the years 2015 and

209 187

210 Other Fees and Service Charges Summary User fees shown here are reflected throughout Departmental Budgets and reduce net tax levy requirements. 188

211 189

212 190

213 2016 Budget Highlights Part Property Taxation

214 Part Property Taxation Taxation Revenue Summary The amount of taxation revenue, included in the 2016 Budget, to fund the net expenditures from all City activities less corporate revenues is $119.6 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 $228,

215 Part Property Taxation 193

216 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 plan was deferred for 2015, as directed by Council through the 2015 Budget Guideline Report. On August 4, 2015, Council approved Report CPFS (2016 Budget Guideline) which included the following recommendation: That the Tax Ratio Reduction Program be reinstated for the 2016 Draft Budget and reflect reductions: i) To the Commercial and Industrial Class Tax Ratios but not the Multi-residential Class, and ii) At a rate that is one-half of the annual reduction that was originally included in the program Tax Ratios Reinstating the Tax Ratio Reductions 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 2.50% All-inclusive residential tax and sewer levy increase proposed in the 2016 Draft Budget by 0.25%. In other words, if the 2016 tax ratios reduction program reductions were not applied, the All-inclusive residential tax and sewer levy increase would be 2.25% as opposed to 2.50%. Tax Rate Impact of Tax Ratio Change The following chart shows the 2016 tax rates as presented in the 2016 Draft Budget compared to what the 2016 rates would be if the modified eight-year Tax Ratio Reduction Plan was not reinstated. 194

217 Part Property Taxation 2015 to 2016 Municipal Tax Rate Comparison With and without change to Tax Ratio City is required to pass a 2016 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 each year. Recommendation That a by-law be passed to establish the 2016 tax ratios for each property class as set out in the 2016 Operating Budget. Additional details on the Tax Ratio Plan are provided in the Tax Policy Section of Book 4, including a review of an option to accelerate the program. 195

218 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. A municipality can increase the percentage by up to ten percentage points each year to a maximum of 75%. 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 recommend that the percentage remain unchanged for Recommendation That the 2016 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 2016 for the Multi-residential, Commercial and Industrial classes be as follows: i. Capping be based on a maximum increase threshold at the greater of 10% of the previous year s annualized capped taxes and 5% of the previous year s annualized CVA tax for the eligible property. ii. iii. iv. No capping credit be applied for properties where the required billing adjustment is within a $250 credit of the properties CVA tax; affected properties would be billed at their full CVA tax level. That properties that achieved CVA tax in 2015 remain at CVA tax from 2016 forward regardless of how reassessment affects the property. That properties that cross over from the clawback to the capping category or vice versa from 2015 to 2016 be taxed at CVA tax. That the threshold on the tax level for eligible new construction be 100%. That the tax ratio reductions for mandated subclasses of vacant units remain at 30% for the Commercial class and 35% for the Industrial class. 196

219 Part Property Taxation Tax Assessment and Tax Rate Information 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. The following chart shows the change in CVA from 2015 to Overall, the taxable CVA increased by 3.0% or $238.4 million. 197

220 Part Property Taxation Taxable Current Value Assessment (CVA)

221 Part Property Taxation Weighted Taxable Assessment

222 Part Property Taxation Municipal Tax Rates Additional details are provided in the Assessment and Tax Rate Supplementary Information contained in Book

223 2016 Budget Highlights Part 4 Other Sections 201

224 Part Other Sections Staffing New Proposed Positions in 2016 Budget There have been 2.40 full-time positions approved in the 2016 Budget, 2.00 Temporary positions have become permanent and 1.00 full-time position eliminated. This results in a net full-time increase of 1.40 as set out in the following chart. 202

225 Part Other Sections Total Staff Complement The total staff complement includes the full-time equivalents (FTE) and part-time FTE s. The following chart shows the split by employee group and the gross expenditure totals. 203

226 Part Other Sections 204

227 Part Other Sections Conversion of 2016 Draft Budget to Full Accrual PSAB Compliant Budget Section of the Municipal Act, 2001 requires that all Ontario Municipalities follow the accounting standards as prescribed by the Public Sector Accounting Board (PSAB) in the preparation of their annual audited financial statements. The PSAB Handbook requires that the budget as shown on the audited financial statements be presented on the same basis as the actual results. The following schedule converts the 2016 Draft Budget to a Full Accrual PSAB Compliant Budget and includes estimates of the expenses excluded through Ontario Regulation 284/09. The excluded expenses are: - Amortization expense of Tangible Capital Assets; - Post-employment benefits expenses, and - Solid waste landfill closure and post-closure expenses. 205

228 Part Other Sections Conversion of 2016 Draft Operating Budget to Full Accrual PSAB Compliant Budget 206

229 Part Other Sections Requests Not Included In the 2016 Draft Budget Requests not included in the 2016 Draft Budget have been sorted by those items that are personnel related, and all others. 207

230 Part Other Sections 208

231 Part Other Sections 209

232 Part Other Sections 2016 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 2016 Operating Budget that is transferred over to the Capital fund to be used to help pay for Capital projects Capital Levy Calculation 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 ($8.3 million) and tax supported debt charges ($7.9 million) from the previous year. Line 2 Increased Capital financing 1.0% of All-Inclusive tax increase As part of the 2016 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 2016 Operating Budget reflect an additional 0.5% Allinclusive (Municipal, Education and Sewer Surcharge) increase to fund the 2016 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,

233 Part Other Sections On December 7, 2015 Council approved the addition of 0.5% to the All-inclusive tax increase to provide additional funds for the following key capital projects: The Public Works Relocation Project (Capital Budget Reference ), the New Arena Facility (Capital Budget Reference ), and the Charlotte Street Renewal and Louis Street Urban Park (Capital Budget Reference ). The full 1.0% increase in the amount of $1,504,460 has been applied to towards increasing tax supported debt payments. Line 3 Incremental Utilities dividend - $211,000 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 $211,000 to be received from the Utilities Group of Companies in 2016 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. 211

234 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 will reach municipal governments in 2016 when the threshold will be met, and then 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, although the City does not expect to do this. 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. Canada has stated that municipalities will have to show progress and outcomes of Asset Management planning over the life of the new Agreement. Under the MFA, Asset Management Plans must be complete by December 31, 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 212

235 Part Other Sections capital spending over the life of the agreement is currently $52,051,908, which exceeds the base amount and meets the incrementality criteria of the Gas Tax agreement. The City s allocation for the years is set out in the following chart. Federal Gas Tax Allocations For 2016, staff have estimated an allocation of $4.8 million and, when combined with some residual unallocated FGT funds and bank interest, provide $5.2 million in funding for the 2016 Draft Capital Budget. The 2016/2017 allocation will assist in funding the following Capital projects: 2016 Capital projects to be funded from Federal Gas Tax Reserve Fund (000 s) 213

236 Part Other Sections Development Charges Reserve Funds ($1.7 Million) Development Charges are levied in accordance with various Development Charge bylaws that were approved in July 2012 and September 2014, all of which establish various Development Charge rates. The 2016 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 2016 and $6.8 million to be funded from DC funded debentures. The current rate for the Growth Areas are in effect until July 31, 2017, whereas the Citywide rates are in effect until December 31, The 2015 rates are set out on Schedule 1 on Page 213. The rates will be indexed as of January 1, 2016; however, the indexing percentage was not known as of the draft Budget book print date. DC commitments as of December 31, 2014 exceed current balances by $27.3 million The 2014 Development Charges Continuity Schedules 2 and 2A, shown on Pages 214 and 215, detail the activity for The $6.3 million balance as of December 31, 2014 and outstanding budgeted commitments of $22.7 million leave a shortfall of $16.4 million in the fund. In addition to the $22.7 million, there is $14.9 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. 214

237 Part Other Sections 215

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

239 Part Other Sections 217

240 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 budget documents 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. 218

241 Part Other Sections Debt Issued and Outstanding - December 31, 2015 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. A further breakdown of the $47.1 million tax supported component in the above graph for debt issued and outstanding is shown on the following graph. 219

242 Part Other Sections Historical Debt Outstanding 2005 to 2015 The level of debt issued and outstanding is tracked on the following graph. 220

243 Part Other Sections Debt Approved but not Issued December 31, 2015 In addition to debt issued and outstanding, $32.6 million debenture financing has been approved in previous years budgets but has not yet been issued. Reasons may be the project has not been fully completed or the project has been delayed. 221

244 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 $124.6 million. The graph indicates how the debt servicing costs are being paid for: The next graph takes the same $124.6 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 Sanitary Sewers and the Airport. 222

245 Part Other Sections 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 $190.3 million and is based on the 2013 Financial Information Return as reported to the Province. For 2015, the Province has calculated the City s annual debt repayment limit at $47.6 million. Of this amount, the City is using $13.8 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 $33.8 million. According to provincial legislation, the City is using 29% of the 25% ($13.8 million /$47.6 million = 29%) of its debt capacity, or 7.25% ($13.8 million /$190.3 million = 7.25%). 223

246 Part Other Sections 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 tax-supported 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. 224

247 Part Other Sections Remaining Debt Capacity at December 31, 2015 Based on the capital financing policy, the debt capacity available at December 31, 2015 is $40.8 million of tax-supported (TS) debt, and $59.6 million of non taxsupported (Non TS) debt for a total of $100.4 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. 225

248 Part Other Sections Remaining Debt Capacity at December 31, 2016 The 2016 payments of debt principal, including the approved 2016 Capital Budget, are paid as per the normal course of business throughout the year, the TS debt capacity available at December 31, 2016 becomes $16.0 million and the Non TS debt capacity available becomes $35.0 million for a total of $51.0 million as shown on the following graph. The decrease in capacity from 2015 is a factor of the reliance upon debt in 2016 Draft Capital Budget ($31.2 million) and the mix of the terms of debt outstanding (10 Year vs. 20 Year), as debt capacity is determined 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. 226

249 Part Other Sections Reserves and Reserve Funds Reserve and Reserve Fund Balances ($113.3 million at October 2015) 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, 2015 and amount to $113.3 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 2016 budgeted transfers to Reserves and planned 2016 expenditures from Reserves. 227

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