2017 Budget Highlights

Transcription

1 Approved 2017 Budget Highlights (Budget Book 1 of 3) April 2017

2 MEMORANDUM Corporate Services, Financial Services Division 500 George Street North Peterborough Ontario K9H 3R9 To: From: Dear Reader Sandra Clancy, Director of Corporate Services Date: April 2017 Subject: 2017 Approved Budget On December 12, 2016, Council approved a $256.9 million Operating and an $80.5 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 Details Overview of Changes Operating Budget - $256.9 million The draft 2017 tax levy requirements in the operating budget amounted to $122,644,183. The following chart summarizes the changes in the operating budget and the net tax levy requirements approved by Council on December 12, 2016 after completing detailed budget reviews:

3 Memorandum 2017 Approved Budget Page 2

4 Memorandum 2017 Approved Budget Page 3 All-inclusive Budget increase 1.72% + 1.0% = 2.72% All-inclusive increase for median residential property The 2017 approved Budget of 2.72% is 0.28% less than the guideline recommended by the Budget Committee through report CPFS dated July 25, 2016 and approved by Council on August 2, The 2.72% All-inclusive (Municipal, Education and Sewer Surcharge) tax increase is comprised of 1.72% 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, Capital budget - $80.5 million There are 194 capital projects included in the 2017 Capital Budget for a total cost of $80.5 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 12, Attachment: Appendix A Excerpt from Council Minutes December 12, 2016

5 Appendix A Budget Committee Report No. 4 Moved by Councillor Clarke, seconded by Councillor Beamer That Report Number 4 of the Budget Committee meeting of November 28, 29 and 30, 2016 be approved. That as part of the main motion, the recommendations were amended by adding item 33 as follows: That staff prepare a report on the feasibility of establishing a budget line to support public capital requests based on the ten year average. Moved by Councillor Pappas, seconded by Councillor Vassiliadis That the $425,000 capital budget project on page 16 of the capital budget book, that being the second floor ladies washroom and the city board room renovation, be removed from the 2017 capital budget and, That the savings be used to reduce the all-inclusive tax rate increase of 3.0%. CARRIED Moved by Councillor McWilliams, seconded by Councillor Pappas That the generator project be removed from the budget. MOTION WITHDRAWN Item 20 Transit Capital Budget As part of the main motion the following housekeeping amendment was made. That item 20, the Transit Capital Budget be amended by removing the word withdrawn and replaced with the word revised as follows: Inasmuch as the Capital Budget Project Transit Garage Replacement has been revised and that direct revenue in the amount of $3,310,400 from the Public Transit Infrastructure Fund was intended to provide funding in for this project and that this funding source must now be reallocated among other eligible transit projects, the following is proposed: Item 5 was separated for vote. Report CPFS Item 5a) - Façade Improvement Program and Community Improvement Program (page 141) and Public Art Program (page 112):

6 Councillor Pappas, due to his previously declared interest, did not discuss or vote on the items. Upon Item 5a) Façade Improvement Program and Community Improvement Program and Public Art Program, the motion carried. Report CPFS Item 5a) Transit Matters (page 76 operating and page 81 capital): Due to his previously declared interest, the Mayor did not discuss or vote on the matter. Upon Item 5a) Transit Matters, the motion carried. Item 20 Transit Capital Budget Due to his previously declared interest, the Mayor did not discuss or vote on the matter. Upon Item 20, the motion carried. Item 27 Police Services Capital Budget Request Moved by Councillor Baldwin That the motion be amended to read: That the approved Police Services capital budget of $547, 673 be revisited by the Police Service Board to consider reducing the budget by $102,255 and, That the $102,255 be shifted to the City's Capital Levy reserve fund if the budget is reduced and, That City Council suggest to the Police Service Board that it consider deferring vehicle purchases, such as the purchase of a new van for the deployment of the Emergency Response Team, in response to the reduced budget allocation. CARRIED Upon the remainder of items, less the Façade and Improvement Programs, Public Art Program, Transit Capital Budget, and Police Services Capital Budget Request, the main motion carried.

7 Budget Committee Report No. 4 Meeting of November 28, 29 and 30, 2016 To the Council of The City of Peterborough for Consideration at its Meeting held December 12, The Budget Committee as a result of its Meeting held on November 28, 29 and 30, 2016 recommends as follows: 1. Director of Corporate Services Report CPFS Peterborough Health Team 2017 Budget for the Physician Recruitment Program That Council approve the recommendation outlined in Report CPFS16-043, dated November 28, 2016, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 29, 2016 Budget Committee by the Peterborough Family Health Team for the 2017 Budget for the Physician Recruitment Program, be received. 2. Director of Corporate Services Report CPFS Budget for the Otonabee Region Conservation Authority That Council approve the recommendations outlined in Report CPFS16-044, dated November 28, 2016, of the Director of Corporate Services as follows: a) That the presentation and budget details presented to the November 29, 2016 Budget Committee by the Otonabee Region Conservation Authority, be received. b) That the $742,690 provision for Otonabee Region Conservation Authority included in the 2017 Draft Operating Budget on page 175 of the 2017 Draft Highlights Book be decreased by $4,877 to $737,813 and that the reduction of $4,877 be transferred to the General Contingency on page 165 of the 2017 Draft Highlights Book.

8 3. Director of Corporate Services Report CPFS Budget for Peterborough Economic Development That Council approve the recommendation outlined in Report CPFS16-045, dated November 28, 2016, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 29, 2016 Budget Committee by Peterborough Economic Development, be received. 4. Director of Corporate Services Report CPFS Budget for Peterborough Public Health That Council approve the recommendation outlined in Report CPFS16-047, dated November 28, 2016, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 29, 2016 Budget Committee by Peterborough Public Health, be received. 5. Director of Corporate Services Report CPFS Draft Budget a) That the 2017 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 2017 Budget process. c) That any unused CAO Budget at the end of 2017 be transferred to the Organizational Development Reserve, subject to the overall year-end position. (Page 23) d) That any unused Peterborough Technology Services Budget, at the end of 2017, be transferred to the Electronic Data Processing (EDP) Reserve, subject to the overall year-end position and that, if actual 2017 costs exceed the 2017 Budget, funds may be drawn from the EDP Reserve. (Page 29) 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 2017 Engineering costs exceed

9 the Budget, funds may be drawn from the Engineering Design and Inspection Reserve. (Page 55) f) That any unused portion of the 2017 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 2017 Winter Control costs exceed the 2017 Budget, funds may be drawn from the Winter Control Reserve. (Page 72) g) That any unused Traffic Signal Maintenance Budget at the end of 2017 be transferred to the Traffic Signal Reserve, subject to the overall year-end position and that if the actual 2017 Traffic Signal Maintenance costs exceed the 2017 Budget, funds may be drawn from the Traffic Signal Reserve. (Page 80) h) That any surplus funds at the end of 2017 for Market Hall be transferred to the Market Hall Capital Reserve for unanticipated maintenance expenses or small capital improvements. (Page 102) i) That any unused Sustainability Budget, at the end of 2017, be transferred to the Sustainability Reserve, subject to the overall yearend position, and that if actual 2017 costs exceed the 2017 Budget, funds may be drawn from the Sustainability Reserve. (Page 102) j) That any surplus funds at the end of 2017 for the Peterborough Sport and Wellness Centre be transferred to the PSWC Capital Conservation Reserve for future capital improvements. (Page 106) k) That any surplus funds at the end of 2017 for Arenas be transferred to the Arena Equipment Reserve for future equipment purchases. (Page 117) l) That any unused Homelessness net budget at the end of 2017 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 2017 Homelessness costs exceed the 2017 Budget, funds may be drawn from the Reserve. (Page 131) m) That any unused Community Development Program net budget at the end of 2017 be transferred to the Social Services Community Social Plan Joint Reserve for future program development, subject to the overall year-end position and that if actual 2017 Community Development Program costs exceed the 2017 Budget, funds may be drawn from the Reserve. (Page 131)

10 n) That any remaining unused Social Services net budget at the end of 2017 be transferred to the General Assistance Reserve, subject to the overall year-end position and that, if actual 2017 Social Services costs exceed the 2017 Budget, funds may be drawn from the Reserve. (Page 131) o) That any surplus in the 2017 Housing Operating Budget at the end of 2017 be transferred to the Housing Reserve, subject to the overall year-end position and that, if actual 2017 Housing costs exceed the 2017 Budget, funds may be drawn from the Housing Reserve. (Page 149) p) That any surplus in the 2017 Housing Choice Rent Supplement Program at the end of 2017 be transferred to the Housing Choice Rent Supplement Reserve, subject to the overall year-end position and that, if actual 2017 Rent Supplement costs exceed the 2017 Budget, funds may be drawn from the Rent Supplement Reserve. (Page 149) q) That any excess Airport development review fees at the end of 2017 be transferred to the Airport Development Review Reserve for future Airport Development related expenditures and that if the 2017 Airport development review costs exceed the review fees, funds may be drawn from the Airport Development Review Reserve. (Page 153) q1) That any unused Building Inspection Budget at the end of 2017 be transferred to the Building Division Reserve and that, if actual building inspection costs exceed the 2017 Budget, funds may be drawn from the Building Division Reserve. (Page 158) r) That any adjustment to the City s 2017 requirement for the Municipal Property Assessment Corporation (MPAC), be netted against the City s 2017 General Contingency provision. (Page 163) s) That any unused portion of the 2017 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 2017 tax write-off costs exceed the 2017 Budget, funds may be drawn from the Allowance for Doubtful Accounts Reserve. (Page 165) t) That any unused Employee Benefits Budget at the end of 2017 be transferred to the Employee Benefits Reserve, subject to the overall year-end position, and that, if actual 2017 employee benefits exceed the 2017 Budget, funds may be drawn from the Employee Benefits Reserve. (Page 165)

11 u) That any unused Insurance Budget at the end of 2017 be transferred to the Insurance Reserve, subject to the overall year-end position and that, if actual 2017 insurance costs exceed the 2017 Budget, funds may be drawn from the Insurance Reserve. (Page 165) v) That any unused 2017 Contingency Budget at the end of 2017 be transferred to the Capital Levy Reserve to be used for Capital works subject to the overall 2017 year-end position. (Page 165) w) That $102,255 be added to the Police Services Budget and that the amount be funded from the 2017 General Contingency provision. (Page 169) x) That any unused Police Services Legal fees Budget at the end of 2017 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 2017 Police legal fees costs exceed the 2017 Budget, funds may be drawn from the Policing Legal Fees Reserve. (Page 169) y) That any unused Police Services Budget at the end of 2017 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 2017 Police Services costs exceed the 2017 Budget, funds may be drawn from the Police Special Projects Reserve. (Page 169) z) That any adjustments to the City s portion of the 2017 Peterborough County/City Paramedics Services Budget be netted against the 2017 General Contingency provision. (Page 174) aa) bb) cc) dd) That any unused Peterborough County/City Paramedics Services (PCCP) Budget at the end of 2017 be transferred to the PCCP Reserve, subject to the overall year-end position and that, if the actual 2017 PCCP costs exceed the 2017 Budget, funds may be drawn from the PCCP Reserve. (Page 175) That any adjustments to the City s portion of ORCA s 2017 Budget, based on the final approved ORCA Budget, be netted against the City s 2017 general contingency provision. (Page 175) That any adjustments to the City s portion of Peterborough Public Health s 2017 Budget, based on the final approved Peterborough Public Health Budget, be netted against the City s 2017 general contingency provision. (Page 176) That the 2017 budget request, representing the levy required by the Downtown Business Improvement Area of the Corporation of the

12 City of Peterborough during the year 2017 totaling $304,700, be approved. (Page 181) ee) ff) gg) hh) ii) jj) kk) That the 2017 budget request, representing all sums required by the Village Business Improvement Area of the Corporation of the City of Peterborough during the year 2017 totaling $16,380, be approved. (Page 182) That any net surplus funds, after the disposition of the recommendations in this report, from 2017 operations in excess of $100,000 be transferred to the Capital Levy Reserve to be used for Capital works. (Page 184) That a by-law be passed to establish the 2017 tax ratios for each property class as set out in the 2017 Operating Budget. (Page 193) That the 2017 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 2017 for the Multi-residential, Commercial and Industrial classes be as follows: (Page 194) i. Capping be based on a maximum increase of 10% of the previous year s CVA (Current Value Assessment) tax for the eligible property. ii. iii. iv. No capping credit be applied for properties where the required billing adjustment is within $500 of the properties CVA tax; affected properties would be billed at their full CVA tax level. That properties that achieved CVA tax in 2016 remain at CVA tax from 2017 forward regardless of how reassessment affects the property. That properties that cross over from the claw back to the capping category or vice versa from 2016 to 2017 be taxed at CVA tax. v. That properties within the Industrial tax class are no longer eligible for the capping program. vi. That properties within the Commercial and Multi-Residential tax classes move towards CVA Tax over a four year phase-out period which commenced in 2016 and will achieve full CVA by That the threshold on the tax level for eligible new construction be 100%. (Page 194)

13 ll) 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) 6. Councillor s Expense and Professional Development Accounts That staff provide an information report regarding Councillor s expense and professional development accounts. 7. Memorial Centre Ice Pad Lighting Project That if grant funds are not available for the Memorial Centre Ice Pad Lighting Project (page 18 of the Capital Budget Details Book) the money be returned to the Capital Reserve after any expenses associated with the grant submission have been paid. 8. Lansdowne Street West Spillsbury to Clonsilla Capital Project That the $700,000 in funds identified for the 2018 budget year (page 57 of the Budget Highlights Book), for the Lansdowne West - Spillsbury to Clonsilla capital project be pre-committed for Hiring of Public Works Staff Positions That the hiring of the public works staff positions (page 214 of the Budget Highlights Book) be deferred as follows: That the two PW Operator 1 positions scheduled to be hired in January 2017 be deferred until April 2017; That the two PW Operator 1 positions scheduled to be hired in September 2017 be deferred until November 2017; and, That the savings of $50,750 be transferred to contingency. 10. Automatic Traffic Cameras That City staff provide a report to Council outlining the potential benefits to traffic control and safety as well as the potential capital costs and revenue associated with the introduction of automated traffic cameras as envisioned through the provincial government s recent announcement that it will provide municipalities with the ability to use these systems in School

14 Safety Zones and Community Safety Zones (page 76 of Budget Highlight Book). 11. Parking Reserves Staff report back on the future of the uncommitted balance on the Parking Reserve and its potential uses (page 79 of the Budget Highlights Book). 12. Transit Garage Replacement That capital project , Transit Garage Replacement (page 81 of the Budget Highlights Book), be withdrawn. 13. Current User Fees That staff provide a report on user fees to determine if the current fee structure is comparable with the fees charged in other communities. 14. Funding Provided for New Canadians That a letter be sent from the Mayor and Council, addressed to Prime Minister Trudeau, MP Monsef, New Canadian Minister Cowan and MPP Leal inquiring about the level of funding provided for New Canadians, specifically regarding month thirteen assistance. 15. Special Events Coordinator That the position of Special Events Coordinator, as identified on page 101 of the Budget Highlights Book be removed; and, That the funds associated with the position in the amount of $104,600 be moved to General Contingency. 16. Support for Special Events That staff provide a report on how support can be provided for special events in the community, including the possibility of partnering with Peterborough Economic Development or the realigning of existing staff responsibilities.

15 17. Director of Corporate Services Report CPFS Peterborough Police Services 2017 Budget That Council approve the recommendation outlined in Report CPFS16-050, dated November 28, 2016, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 29, 2016 Budget Committee by Peterborough Police Services Board, be received. 18. Director of Corporate Services Report CPFS Peterborough County/City Paramedics Service 2017 Budget That Council approve the recommendation outlined in Report CPFS16-049, dated November 28, 2016, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 29, 2016 Budget Committee by the Peterborough County/City Paramedics Service, be received. 19. Director of Corporate Services Report CPFS Fairhaven 2017 Budget That Council approve the recommendation outlined in Report CPFS16-048, dated November 28, 2016, of the Director of Corporate Services as follows: That the presentation and budget details presented to the November 29, 2016 Budget Committee by Fairhaven, be received. 20. Transit Capital Budget Motion Inasmuch as the Capital Budget Project Transit Garage Replacement has been revised and that direct revenue in the amount of $3,310,400 from the Public Transit Infrastructure Fund was intended to provide funding in for this project and that this funding source must now be reallocated among other eligible transit projects, the following is proposed: a) Capital Budget Project Transit Garage Replacement be revised as follows:

16 i) The title be changed to Transit Garage Replacement Site Selection Study; ii) The 2017 funding request be reduced from $2,430,000 to $900,000; iii) The 2018 and 2019 funding requests be eliminated; and iv) A 2020 funding request in the amount of $9,712,500 be added. b) Capital Budget Project Transit Buses be revised as follows: i) That the 2017 funding request be increased from $1,725,000 to $2,875,000; ii) That the 2018 funding request be increased from $1,200,000 to $2,425,000, and iii) That the 2019 funding request be eliminated c) The 2017 funding request for Capital Budget Project Transit Stop-Shelter Upgrades be increased from $68,500 to $2,004,500. d) The 2017 funding request for Capital Budget Project Accessible Transit Stops be increased from $56,200 to $106, Implications of Ontario Works Cost Sharing Upload That staff provide a report in 2017 on the implications of the end of the Ontario Works cost sharing upload (page 125 of the Budget Highlights Book). 22. Noise By-law Report That staff provide a report on why there is a line item for $25,000 for police regarding the noise by-law included in the budget (page 1641 of the Budget Highlights Book). 23. Director of Community Services Report CSD Pete s' Funding Request That the recommendations detailed in Report CSD Pete s Funding Request be deferred until City finance staff have had an opportunity to review the Pete s annual financial statements for the last five years, and provide a report for Council consideration.

17 24. Director of Community Services Report CSD Municipal and Community Support of Refugees That Council approve the recommendations outlined in Report CSD dated November 28, 2016, of the Director of Community Services, as follows: a) That the City contribution of $25,000 to the NCC for 2017 for the Integration of Refugees, as approved on November 23, 2015, be increased by an additional one time allocation of $50,000 to help offset the anticipated impact of Month 13 and the end of the Resettlement Assistance Program funding on the NCC s operations in the event that the federal government or another agency does not provide this funding, and that until this time, this money remain in contingency to be released by staff; b) That staff be directed to report back to Council to provide an update on the activities associated with this work before the end of Director of Community Services Report CSD City Sponsorship of Special Hockey International (SHI) Tournament That Council approve the recommendation outlined in Report CSD dated November 28, 2016, of the Director of Community Services, as follows: That up to $24,018 in the Community Services Administration Draft 2017 Operating Budget, recommended as City sponsorship to cover the rental cost of City facilities during the proposed SHI Tournament, remain pending final confirmation that the tournament will proceed. 26. Peterborough Drug Strategy That $102,255 be added to the Police Services Budget and that the amount be funded from the 2017 General Contingency provision.

18 27. Police Services Capital Budget Request That the approved Police Services capital budget of $547, 673 be revisited by the Police Service Board to consider reducing the budget by $102,255 and, That the $102,255 be shifted to the City's Capital Levy reserve fund if the budget is reduced and, That City Council suggest to the Police Service Board that it consider deferring vehicle purchases, such as the purchase of a new van for the deployment of the Emergency Response Team, in response to the reduced budget allocation. 28. Fairhaven That Council approve one time funding in the amount of $220,141 as requested by Fairhaven be added to the 2017 budget, subject to there not being a successful grant request received from the Province, and that this money come from general contingency; and, That the management team at Fairhaven conduct an operational review. 29. Director of Corporate Services Report CPFS Budget for the Peterborough Humane Society That Report CPFS16-046, dated November 28, 2016 of the Director of Corporate Services be received; and, That staff provide a report on fines, dog tag sales and projected cat tag sales, the responsibilities of enforcement officers, and the possibility of the Humane Society hiring a summer student to sell tags door-to-door. 30. Maintenance of Artificial Fields That staff provide a report on the costs of maintaining artificial fields versus natural sports fields.

19 Debt Capacity Limit That staff provide a report on the implications of the 2018 debt capacity limit being reached, along with possible funding for capital projects. 32. Uncommitted Reserve Funds That staff prepare a report on uncommitted reserve funds as part of the quarterly report process. 33. Ten Year Average Public Capital Requests That staff prepare a report on the feasibility of establishing a budget line to support public capital requests based on the ten year average. 34. Capital Budget Project (page 16) That the $425,000 capital budget project on page 16 of the capital budget book, that being the second floor ladies washroom and the city board room renovation, be removed from the 2017 capital budget and, That the savings be used to reduce the all-inclusive tax rate increase of 3.0%. Submitted by, Councillor Clarke Chair November 30, 2016

20 2017 Budget Table of Contents Part 1: 2017 Approved Budget Overview Operating Budget (Revenues and Gross Expenditures)... 2 Factors impacting Operating Revenues... 3 Factors Impacting Gross Expenditures... 4 Gross expenditures versus net expenditures... 5 Factors Impacting Net Expenditures... 5 Net tax levy requirement equals $123.2 million up by 3.0%... 6 Tax Ratio Reduction Program continues for Effect of assessment growth on the All-inclusive Tax increase... 6 Median residential assessment: $235, Residential education rate assumed to decrease by 3.8%... 7 Sewer surcharge rate to stay at 95%... 7 Approved Budget 1.72% + 1.0% = 2.72% All-inclusive increase for median residential property... 7 How 2.72% All-inclusive rate increase relates to the $3.6 million increase in the Net Tax Levy Requirement... 8 What does 1% mean?... 8 Comparative All Inclusive Tax and Sewer Surcharge Rates and Levies for Median Single Family Dwelling... 9 Factors impacting 3.0% increase in the tax levy requirement Tax Levy Requirement Change Factors Capital Expenditures and Financing by Source Largest 2017 Capital Projects Part 2: 2017 Operating and Capital Budget Review Organization Chart City Council - Operating Budget Chief Administrative Officer Departmental Summary Operating Budget Fire Services Division - Operating Budget Fire Services Division - Capital Budget Emergency and Risk Management Operating Budget Corporate Services Departmental Summary - Operating Budget Corporate Services Departmental Summary - Capital Budget ii

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

22 Arenas Division - Operating Budget Arenas Capital Budget Social Services Division Operating Budget Social Services - Capital Planning and Development Services Departmental Summary - Operating Budget Planning and Development Services Departmental Summary Capital Budget Planning, Geomatics/Mapping Administration Operating Budget Planning Capital Budget Growth Areas Capital Budget Industrial Parks Capital Budget Geomatics Mapping Capital Budget Housing Division - Operating Budget Housing Capital Budget Airport Division - Operating Budget Airport Capital Budget Building Inspection and Protective Services Division Operating Budget. 158 Financial Services Other Financial Summary Operating Budget Capital Financing Costs Property Taxation Costs ($3.3 Million) Other Expenditures Transfers To Organizations For Provision Of Services Summary Operating Budget Peterborough Police Services - Operating Budget Police Capital Budget Fairhaven Fairhaven Capital Funding - $200, Peterborough County/City Paramedics Service (PCCP) Otonabee Region Conservation Authority (ORCA) Peterborough Public Health Operating Budget Peterborough Economic Development (PED) Peterborough Humane Society Peterborough Family Health Team Business Improvement Areas Corporate Revenues Summary Sewer Surcharge Sewer Surcharge Funded Operating Expenditures Other Fees and Service Charges Summary Part 3: 2017 Property Taxation Taxation Revenue Summary iv

23 What a Residential Tax Payer Pays Tax Policy Taxable Assessment Re-assessment four year cycle continues Taxable CVA by Class and Sub-class Tax Ratios and Tax Rates Tax Ratio Reduction Plan Tax Rate Impact of Tax Ratio Change Weighted Taxable Assessment Municipal tax rate calculation Municipal Tax Rates Education Tax Rates Part 4: Other Sections Staffing New Proposed Positions in 2017 Budget Total Staff Complement Staffing Complement and Dollars Impact of Requested New Full-Time Permanent Positions New Full-time Permanent Positions Proposed in the Operating Budget (17.00 FTE) Conversion of 2017 Draft Operating Budget to Full Accrual PSAB Compliant Budget Requests Not Included In the 2017 Draft Budget Capital Financing Supplementary Information Capital Levy Calculation and Tax Supported Debt Federal Gas Tax Program Development Charges Reserve Funds ($2.4 Million) Development Charge Rates Long Term Debt Reserves and Reserve Funds Part 5: Glossary of Budget Terms and Acronyms Budget Terms Acronyms Used in Budget Documents v

24 Part Approved Budget - Overview Budget Highlights Part 1: 2017 Approved Budget Overview 1

25 Part Approved Budget - Overview 2017 Operating Budget (Revenues and Gross Expenditures) The 2017 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

26 Part Approved Budget - Overview Factors impacting Operating Revenues Conditional Grants are projected to increase by approximately $1.6 million, mostly as a result of an increase in grant revenues for Social Assistance and Children s Services in the amount of $1.4 million and an increase in Housing subsidies in the amount of $0.1 million. Sewer Surcharges are based on 95% of water revenues, however, it is anticipated that the 2016 estimates of sewer surcharge will not be realized; 2017 estimates seek to realign the budget to better reflect actual water usage. Tipping Fees are expected to increase slightly by approximately $0.1 million over the 2016 Budget year. The facility is jointly owned by the City and County with each municipality owning a 50% share. Other Fees and Service Charges overall are projected to increase slightly, with line items such as Transit fare revenues, Fire dispatch, fees charged to mortgage companies, parental fees in Children s Services and POA revenues; however, there are certain fees that are projected to decrease such as building permits, and reimbursements within Social Services. Transfers from Other Reserves will increase slightly, mostly as a result of anticipated costs preparing for the 2018 election, which is funded from the Election reserve. 3

27 Part Approved Budget - Overview Factors Impacting Gross Expenditures Gross Expenditures for 2016 have increased $4.6 million over the 2016 gross expenditures. The key factors are: Personnel - $3.4 million Increase in Debt Financing Charges - $1.5 million Net Police Services - $0.6 million 4

28 Part Approved Budget - Overview Gross expenditures versus net expenditures Gross expenditures, less direct revenues of $120.7 million, such as conditional grants and user fees, result in net expenditure requirements for 2017 of $136.2 million as shown in the following chart. Factors Impacting Net Expenditures The 2017 net expenditures have increased $4.0 million. Some of the key factors impacting gross expenditures have offsetting revenues which means they do not impact net expenditures. As an example, Children s Services gross expenditures have increased $1.11 million, but subsidies and other fees are also increasing by a similar amount, for a relatively small overall net increase. The key factors impacting the 2017 Net Expenditures from the 2016 level are: Personnel ($1.4 million) Social Services (-$0.9 million) Increase in Debt Financing Charges ($1.5 million) 5

29 Part Approved Budget - Overview Net tax levy requirement equals $123.2 million up by 3.0% Corporate revenues for 2017, such as Supplementary taxes, Investment interest, Payments in Lieu and City of Peterborough Holdings Inc. s return on investment total $13.0 million and are deducted from the $136.2 million net departmental expenditures to derive the $123.2 million net tax levy requirements for The net tax levy requirements have increased by 3.0% or $3.6 million compared to Tax Ratio Reduction Program continues for 2017 As directed by Council through the 2017 Budget Guidelines report, the Tax Ratio Reduction Program, that was deferred in the 2015 Operating Budget and resumed in the 2016 Budget, continues for 2017 for Commercial and Industrial property owners. 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 -0.1%. Effect of assessment growth on the All-inclusive Tax increase The 2017 real current value assessment growth reduces the All-inclusive Tax increase by 0.6%. The net result is a 0.9% municipal residential tax rate increase. These impacts are reflected in Chart 1. Chart 1 Effect of Assessment Growth and Tax Ratio Changes on the All-inclusive Tax increase 6

30 Part Approved Budget - Overview Median residential assessment: $235,200 The 2017 Budget is based on current assessment values as of January 1, Adjustments to market values from January 1, 2012 to January 1, 2016 values are being phased-in equally over the years with 2017 representing year one. The assessment used for the 2017 taxation year also reflects an estimated 0.75% real growth component for the Residential Class and 1.0% growth in the Multi-residential Property Class as reported to Budget Committee through Report CPFS Budget Guidelines, dated July 25, It is expected that the median residential assessment for a single family dwelling (not waterfront property) for 2017 will be $235,200, an increase of 3.16% over the 2016 median assessed value of $228,000. Residential education rate assumed to decrease by 3.8% The education rate for all property classes continues to be regulated by the Province. For the 2017 Draft Budget, it has been assumed that the rate will decrease by 3.8%, the same decrease experienced in the previous year. Sewer surcharge rate to stay at 95% The draft 2017 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 2017 water rates. The 2017 Operating Budget assumes a 2.2% annualized water rate increase for The result is that the average house will experience a $9.54 (2.2%) increase in their sewer surcharge annual amount payable over the 2016 level. Approved Budget 1.72% + 1.0% = 2.72% All-inclusive increase for median residential property When the real assessment growth, the 0.2% proposed municipal residential tax rate increase, 3.8% 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 2.72% ($101.39) annual increase ($8.45 monthly) in municipal, education, and sewer surcharge payable. The final Budget approved by Council on December 12, 2016, resulted in an Allinclusive tax increase of 2.72%. The Draft Budget initially requested a tax increase of 3.0%, which was consistent with the guideline recommended by the Budget Committee through Report CPFS dated July 25, 2016 and approved by Council August 2,

31 Part Approved Budget - Overview The final 2.72% All-inclusive (Municipal, Education and Sewer Surcharge) tax increase is comprised of 1.72% 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 2.72% All-inclusive rate increase relates to the $3.6 million increase in the Net Tax Levy Requirement The 2.72% All-inclusive rate increase is a reference to the increase that a typical homeowner would see on their 2017 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 $3.6 million Net Tax Levy Requirement increase is the additional amount that will be raised from taxation over the previous year; some of which is raised from current property owners and the balance is from the anticipated 'real' growth and the resulting tax bills those property owners will receive. What does 1% mean? Both the All-inclusive Tax increase and the Net Tax Levy Requirement are within the control of Council. For 2017, a 1.0% change in the All-inclusive Tax Rate (combined Municipal and Education Tax on Assessment plus Sewer Surcharge) equates to approximately $1,540,000 in tax supported expenditures. That is, to lower the 2017 proposed 3.0% increase to 2.0%, $1,540,000 net tax levy funded expenditures would have to be cut. Chart 2 summarizes the residential tax and sewer rates, and resulting levies. 8

32 Part Approved Budget - Overview Chart 2 Comparative All Inclusive Tax and Sewer Surcharge Rates and Levies for Median Single Family Dwelling 9

33 Part Approved Budget - Overview Factors impacting 3.0% increase in the tax levy requirement For the most part, the 2017 Budget as presented maintains the existing levels of service while accommodating expenditure increases required to sustain levels of service and accommodating any new legislated requirements. However, there are some service level enhancements over and above the 2016 Budget including: Enhancement to Capital program - $1,539,600 Transit Handi-Van and Community Bus service - $284,800 Winter control Roads and Sidewalks - USPW $460,900 Discretionary benefits - $50,000 for dentures Children s Services licensed spaces - $34,780 net / Pearson Child Care Municipal rent supplements - $100,000 Table 1, lists the major areas reflected in the draft budget that have impacted the 2017 tax levy requirement. The supplementary Notes on pages 12 and 13 provide additional commentary on key impacts. 10

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

35 Part Approved Budget - Overview Tax Levy Requirement Change Factors - Supplementary Notes Personnel costs Total personnel costs for 2017 will amount to $98.7 million for 1,053.6 employees (full-time equivalents) and represents 38.4% of the total $256.9 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 2016 hires and some proposed new hires. Social Services Upload Lines 3.01 Social Services caseloads have been budgeted with a net decrease of 1.9% 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 $1.54 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 6%. The impacts to various budgets are expected to amount to $0.24 million. Line 6.03 Fairhaven submitted a request for a budget increase of $440,041 which was ultimately approved by Council. The initial Draft Budet included an increase of only $219,900. Increased Revenues or Decreased Expenditures offsetting budgetary pressures Line 7.01 and 7.05 Services have been expanded in both Transit with the Fleming U-Pass program as well as the expansion of Pearson Daycare. In both instances additional revenues are generated, but there are corresponding expenditure increases that offset these revenues. Line The debt principal and interest payments have been retired for both the Evinrude Centre and King Street Parkade. As the debt was partially user fee supported, its elimination has provided budgetary relief. 12

36 Part Approved Budget - Overview Line 7.06 Various Reserve transfer have either increased or decreased based upon future needs. The net change is a decrease in contributions in the amount of $144,300. Other factors affecting the 2017 tax levy requirement The other impacts shown will be discussed in the 2017 Operating and Capital Budget (by Department) section of the Highlights Book. Year-End Transfers Throughout the Operating Budget, there are many ongoing recommendations that Council traditionally approves, to transfer any unused portion of a certain budget to a specific reserve. The funds in the reserve might be for future capital works or to draw on and bring into operating in a year where operating costs exceed the budget. These transfers are dependent on the City s overall year-end financial position. These are listed in Part 2 of this Highlights Book, in their appropriate section. 13

37 Part Approved Budget - Overview 2017 Capital Budget: $80.5 million There are 194 capital projects included in the 2017 Capital Budget for a total cost of $80.5 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 2017 Capital Budget, the requested capital program from departments far exceeded the available funds. As in prior years, the program was reduced to come in within the guideline provided by Council. In looking forward to future years, capital pressures continue to outweigh available funds. In the 2017 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. Asset Management will play an increasing role in prioritizing capital projects. 14

38 Part Approved Budget - Overview 2017 Capital Budget Summary: $80.5 million The 2017 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. 15

39 Part Approved Budget - Overview 2017 Capital Expenditures and Financing by Source 16

40 Part Approved Budget - Overview 20 Largest 2017 Capital Projects The $51.9 million in these top 20 projects represents 65.0% of the total $80.5 million Capital Budget. 17

41 Part Approved Budget - Overview 18

42 Budget Highlights Part 2: 2017 Operating and Capital Budget Review (by Department) 19

43 Organization Chart While preparing for the Budget Committee Reviews, Council is encouraged to review the 2017 Work Programs found in Book 2. At a very high level, the work programs show Council the outcomes they can expect at the requested levels of funding for each Department. The following organization chart shows each department and the division within each department that operate to achieve the work program items. 20

44 21

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 an Assistant to the Mayor. For the time being, 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. In discussing Report CPFS16-004, 2015 Council Remuneration Statements, dated March 7, 2016, the following motion was made and subsequently approved by Council on March 14, 2016: That staff establish a citizen advisory committee to review Council salaries using comparators from around the province and, That staff report back to Council with the findings. The review is currently in progress. For purposes of the 2017 Draft Budget, remuneration for the Mayor is estimated to be $68,719 and for each Councillor $28,

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 2017 be transferred to the Organizational Development Reserve, subject to the overall year-end position. 23

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 as well as the municipalities within the County of Northumberland. Personnel costs for the 99 staff in the Division represent 84.7% of gross expenditures. The Budget includes a new full time Fire Prevention Officer to address risks in the City and issued directives from the Fire Marshal. Similar to last year, costs for 2017, 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, Revenues have increased primarily as a result of the contract for fire dispatch services for Northumberland County. Fire hydrant charges to the City of Peterborough by the PUC remain at $650,000 for 2017; however, the actual costs incurred by the PUC to provide this service continue to exceed this amount. 24

48 Fire Services Division - Capital Budget Fire Fighting Equipment and Personal Protective Equipment (PPE) Program This program allows for the replacement of decommissioned PPE to ensure firefighters are suitably equipped to remain 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. Fire Apparatus Replacement/Additions The expenditure in 2017 is for the replacement of a Support Unit. 25

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. The report indicated that Station #2 on Carnegie Avenue would be replaced with annual capital budget priorities and scheduled development. The $4.0 million provision shown in 2020 represents the estimated construction cost to replace the 45-year old Station. The report also indicated that in 2020, Station #4 would be constructed in East City in conjunction with annual capital budget priorities and scheduled development; however, the project has been deferred until 2024 pending the Cold Springs Subdivision Development. 26

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. 27

51 Corporate Services Departmental Summary - Operating Budget This Department facilitates coordinated and effective delivery of services provided by the Clerk's Office, Financial Services, Property Services, Human Resources, Corporate Information Services and Facilities and Planning Initiatives. The Elections budget includes 2 staff positions (Election Co-ordinator and Election Assistant) that will be hired mid-year to begin preparation for the 2018 municipal election. The positions are funded from the Election Reserve. The Financial Services Division operating budget includes a new revenue item to to process property taxation payments through mortgages. The $5 fee per roll will partially recover staff time involved in the process. 28

52 The net increase of 6.4% 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. Gross expenditures are $4.3 million with approximately $2.5 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 $1.2 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 $1.3 million residing in Corporate Services represents the non-allocated charges. Recommendation That any unused Peterborough Technology Services Budget, at the end of 2017, be transferred to the Electronic Data Processing (EDP) Reserve, subject to the overall year-end position and that if actual 2017 costs exceed the 2017 Budget, funds may be drawn from the EDP reserve. The Facilities and Planning Initiatives Division provides project management resources to capital projects throughout the Corporation. For 2017, in addition to the projects described in this section, the Facilities and Planning Initiatives Manager will manage: Completion of The Peterborough Public Library renovation and expansion project construction, relocation of library from temporary location. New arena complex - Phase 2 detailed design and tendering. Design and construction of new washroom facility at Beavermead Campground Park. Development and construction of shade structures at various parks. These projects are listed in their corresponding divisional capital budgets. Trent Sport Field 29

53 Corporate Services Departmental Summary - Capital Budget Corporate Services Summary - Tangible Capital Asset 30

54 Corporate Services Summary - Other 31

55 Property The 2017 Capital Budget for Property reflects the consolidation of facility costs for numerous Departments/Divisions. Among the largest expenditures planned for 2017 are the installation of a new elevator at City Hall in the amount of $1,200,000 (budget provisions have been made over ), City Hall generator replacement for $460,000 and Kinsmen Arena refrigeration equipment upgrades for $600,000. Other projects include: Replacement of lighting in both the PMC ($225,000) and PSWC ($210,000) with LED lighting. Asphalt and Sidewalk replacement at the Main Fire Hall ($325,000) and roof and façade repairs to Market Hall ($255,000). 32

56 33

57 Facilities and Planning Initiatives 34

58 359 Aylmer Street N Council approved the recommendations in report PLPD16-013, dated March 7, 2016, for the purchase of 359 Aylmer Street North to improve access and enhance public space for the Peterborough Public Library main entrance. Wading Pool Conversions/New Splash Pads The City has submitted an application to the Ontario 150 Community Capital Program for a $300,000 grant supporting the $600,000 rehabilitation of Barnardo Park in The project scope entails rehabilitating the Park to make all elements accessible by not only converting the wading pool to a splash pad, but also replacing the playground equipment, paving the gravel lot and paving and extending the existing pathway to provide an accessible link to all park elements. 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 people 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. The City is currently exploring a partnership with a local district school board. 35

59 Information Services 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. 36

60 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. City Technology Projects and Capital Improvements Machinery and Equipment/Computer Hardware and Software, including Server replacements, Notebook computers and software totaling $272,

61 Corporate Services Other 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. 38

62 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. Corporate Website Refresh 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. This is a two-phased project. The Needs Assessment Phase began in The Design/Build of the new website will begin in The City's website is a key communication tool for the municipality. has over 200,000 visitors per year, who view more than 400,000 pages annually. City residents use the website to access information on City business, register for programs, pay parking tickets and purchase products and services. Increasingly, we are using the website to engage in two-way communication with residents through online surveys and links with social media. Participatory Budgeting Through Report CPFS dated July 25, 2016, Council approved the ten 2016 PB Pilot projects resulting in a combined cost of $98,577. Any future PB program is contingent upon a successful evaluation of the Pilot program and Council approval to continue with the initiative. 39

63 Hospice Peterborough Funding Request Based on Report CPFS15-036, 2016 Budget Guidelines dated July 27, 2015, Council approved the following recommendation: That, with respect to the Hospice Peterborough Renovation Project, 40

64 i) the City commit, in principle, to provide $1.5 million toward the project construction costs over a three-year period 2016 to 2018, subject to a satisfactory funding agreement being reached, and ii) That the 2016 Draft Capital Budget includes the first $500,000 annual contribution. Peterborough Humane Society - New Animal Care Centre Capital Campaign Based on Report OCS dated May 30, 2016, and a presentation by the Humane Society, Council committed to support the capital campaign over five annual installments. Motion b) and c) read as follows: b) That the City of Peterborough approve a $1.5 million capital campaign contribution to the Peterborough Humane Society, to be paid in 5 annual installments over a five-year period from 2017 to 2021, in support of the $9.5 million Peterborough Animal Care Centre at 1999 Technology Drive c) That the City of Peterborough directly pay the Development Charges for the Peterborough Humane Society Animal Care Centre at 1999 Technology Drive in the amount of approximately $186,000, and that the payment be made in 2 annual installments of approximately $93,000 commencing in 2017; 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. 41

65 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 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 $200,

66 Legal Services Departmental Summary Operating Budget The Office of the City Solicitor (OCS) provides legal advice and general legal services to the Corporation, Council and various local boards. This Division also represents the City as counsel and advocate before the courts and administrative tribunals. The Provincial Offences Office provides administration and court services for the processing of offences under the Provincial Offences Act. For 2017, POA fine revenues are expected to increase slightly compared to the level budgeted in Net revenues are divided between the City and the County of Peterborough, based on weighted assessment. The County share for 2017 is 54.5%, up slightly from 54.2% in The City s share is 45.5%. As a member of the Risk Management Committee, the OCS works closely with the Insurance and Risk Management Coordinator on claims management involving litigation and insurance coverage for contractual and other risk management documents. 43

67 Utility Services Departmental Summary Operating Budget The Utility Services Department provides a wide range of services and has a gross operating budget amounting to $57.0 million. 44

68 Utility Services Departmental Summary Capital Budget 45

69 46

70 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). 47

71 Utility Services Administration Capital Budget 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 2015, 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. 48

72 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. 49

73 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. EAB was discovered in isolated areas of the City in In 2015, a rotating 2-year treatment cycle of Ash trees was initiated. Selective removals began in

74 Flood Reduction Master Plan Projects 51

75 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. This project substantially increases the flow-carrying capacity along Marina Boulevard from Hilliard Street to the Royal Drive intersection. The project involves a large catch basin installation, increased storm sewer pipe size and re-grading of portions of properties in the area. This project was successful in receiving $2,000,000 in provincial funding in 2016 and Council has pre-committed the $1,500,000 municipal request for

76 Curtis Creek - Armour Road Culvert The project replaces the Curtis Creek culvert at Armour Road with two - 3.0m x 1.5m box culverts. This is a priority project in a series of recommended improvements which would help mitigate flood damage within the Curtis Creek watershed and East City area. The City has submitted an application to the National Disaster Mitigation Program for a $1,000,000 grant supporting the $2,145,000 project. Curtis Creek - Caddy Street Culvert The project replaces the Curtis Creek culvert at Caddy Street with two - 3.0m x 1.5m box culverts. This is a priority project in a series of recommended improvements which would help mitigate flood damage within the Curtis Creek watershed and East City area. The City has submitted an application to the National Disaster Mitigation Program for a $867,000 grant supporting the $1,734,000 project. 53

77 Flow and Rainfall Monitoring The purpose of flow monitoring is to collect accurate, current information on the flow characteristics of the study area, and the associated rainfall intensity, total volume, rate, and duration. Information collected will be used for various applications including computer model calibration; development of area specific modeling parameters relative to design values; and inflow and infiltration identification and quantification. 54

78 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 2017 Engineering Overhead surplus be transferred to the Engineering Design and Inspection Reserve, subject to the overall year end position and that if actual 2017 Engineering costs exceed the Budget, funds may be drawn from the Engineering Design and Inspection Reserve. 55

79 Engineering, Construction and Infrastructure Planning Divisions - Capital Budget Arterial Streets 56

80 57

81 Pioneer Road Upgrades and External Servicing This project is proposed to provide external servicing to the Trent Research and Innovation Park and upgrades to approximate one kilometre of Pioneer Road that will be impacted as a result of the installation of the services. Hilliard Street Reconstruction - Marina Boulevard to The Parkway This project will address the aging storm sewers on Hilliard Street during the installation of the PUC watermain. Some geometric adjustments may be required to the signalized intersection of Hilliard Street and Marina Boulevard. The project will further aid in the Bears Creek By-pass project that began construction in McDonnel-Gilchrist Rehabilitation This project is anticipated to include the formalization of McDonnel Street with the installation of sidewalk, cycling lanes and new curb and gutter from Park Street to Donegal Street and improvements to Gilchrist Street south of McDonnel Street. Also included in the project are sanitary sewer upgrades on Gilchrist Street north of McDonnel Street in keeping with the Sanitary Sewer Master Plan Study completed to reduce sanitary sewer backups. Storm sewer works are required for the Brookdale Channel outfall that is proposed to outlet at the Donegal Street Bridge. Sherbrooke Street - Glenforest Boulevard to West City Limit This project will involve asphalt pavement, concrete curb and gutter, sidewalk(s), bike lanes, storm and sanitary sewers, turning lanes and signalization. The project is to improve the road condition along the east/west arterial street to an urban cross section. This project also includes the sanitary sewer and urbanization of Hywood Road. Chemong Road North Urbanization - Millroy Avenue to North City Limit This project would involve pavement, curb/gutter, sidewalk(s), storm sewers, and potential for bike lanes, and turning lanes. This project is to improve the road condition and level of service along the north/south arterial street to an urban cross section to coincide with improvements triggered by area development. 58

82 Water Street North Urbanization - Nassau Mills Road to Woodland Drive In support of the new development in the City's north end and the University, the urbanization will provide the level of service required by the area development. This project would involve pavement, curb/gutter, sidewalk(s), storm sewers, and potential for bike lanes, and turning lanes. Lansdowne Street Rehabilitation - Park Street to Otonabee River Due to the age and deteriorating condition of the storm sewers, replacement is proposed. The project will also address replacement of some of the sanitary sewers and pavement structure, as well as the need for some flood mitigation works. Brealey Drive Lansdowne Street West to Sherbrooke Street The project is currently identified as a three-lane cross-section roadway providing centre turn lane opportunities for existing entrances. The project would also involve asphalt pavement, concrete curb and gutter, sidewalk(s), bike lanes, storm sewers and turning lanes with signalization. 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 timing of this project was established to take advantage of portions of the Parkway project to provide traffic management relief during construction and to reduce the cost of stormwater management infrastructure on Chemong Road. 59

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84 Collector and Local Streets 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). 61

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. Otonabee Drive Rehabilitation- Bensfort to Ashburnham Rehabilitation of Otonabee Drive is required to improve the level of service in the area and traffic movement for the City bus route. The road needs study has identified Otonabee Drive in various states of condition ranging from fair to failed. Roads with PCI Index Less than 25 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. Roads rated with a PCI of less than or equal to 25 are considered to be failed and will be reconstructed based on a decision matrix presented to council. The City may also need to review roads that have failed based on alternate modes of transportation as well. 62

86 Bridges 63

87 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. 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)). There is no project funding needed in

88 Sidewalks 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. Various New Sidewalk Installations The City has updated the Sidewalk Implementation Procedure to include notifying residents and Ward Councillors that will be directly impacted by the immediate construction program with sufficient time to allow dialogue between the residents and staff ensuring mitigation measures are taken. Issues that cannot be resolved are brought to the attention of Council. 65

89 Sanitary Sewers 66

90 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. Park Street Sanitary Twinning The project, in conjunction with the Gilchrist Street works, is anticipated to reduce the risk of flooding related to the sanitary sewer system from Parkhill Road to McDonnel Street along the trunk sewer route in this area. Identified through the Inflow and Infiltration study, this is a priority project. The intent of the project is to reduce the likelihood of sewage backup into basements by installing a second sanitary sewer pipe in the specified location. This will provide additional capacity to effectively address the sewer systems surcharging potential. Armour Road Sanitary Twinning - Munroe Avenue to Douro Street Identified through the Inflow and Infiltration study, this is a priority project. The intent of the project is to reduce the likelihood of sewage backup into basements by installing a second sanitary sewer pipe in the specified location. 67

91 Storm Sewers City Wide Storm Water Quality Master Plan Implementation Report USDIR14-001, adopted by Council at its meeting of February 24, 2014, authorized publishing of the Draft Master Plan and requested staff to report back to Council with the final report and implementation plan. USDIR was partially adopted by Council on September 28, 2015 with certain recommendations deferred until staff can provide more information on user fees. This project presents an opportunity to manage stormwater quality discharges potentially impacting our creeks and rivers. The City is mandated to complete specified work by the MOECC related to our existing stormwater facilities throughout the City. The Stormwater Quality EA Management Master Plan was developed as part of the overall evaluation and solution to the existing and potential concerns within the City. 68

92 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 625 pieces of equipment for client groups. 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. For Winter Control, the 2017 Budget anticipates a slight increase in lane kilometres expected to be maintained as in 2016; 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. In 2017, it is recommended to add an additional FTE for Winter Roads along with an additional FTE for Winter Walks. It is also recommended to provide an increase in internal equipment rentals to provide the additional resources to match the FTE increase. These increases are required to maintain the existing level of service as additional infrastructure is added in the Jackson Creek, Mason and future Lily Lake Developments. It is also recommended to add an additional 0.5 FTE in Surface Services (repair and maintenance of road, right-of-way) and surface drainage facilities to address Sidewalk Risk Management. Minimum maintenance standards for the Province regulate annual inspection of sidewalks for compliance along with remedial actions to respond to deficiencies and this additional labour input is required to maintain the existing level of service. The 2017 horticulture program is proposed to remain at the 2016 level of service will see the continuation of an Emerald Ash Borer program. For the purposes of the 2017 Budget, Public Works will see an increase in turf grass areas (13 hectares). An 69

93 increase of 0.5 FTE is recommended to continue with the current level of service for turf grass. Additional resources are also included as a result of the addition of the Trent Sports Fields. 70

94 71

95 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 16.5% of the 2017 budgeted amount of $3.3 million. Recommendation That any unused portion of the 2017 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 2017 Winter Control costs exceed the 2017 Budget, funds may be drawn from the Winter Control reserve. 72

96 Public Works - Capital Budget Public Works Relocation Project In 2014, the City purchased the Coach Canada property at 791 Webber Avenue. The purpose of this purchase is to relocate the Public Works operations and Fleet maintenance functions to the new property. It is anticipated that, when fully developed, this site will support the Public Works operation for the next years. The present construction estimates to transform the 791 Webber Avenue property into a full service Public Works Operations facility is $16,800,000. The cost estimate includes a new, modernized sand/salt/brine storage facility, equipment storage 73

97 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. Vehicle and Equipment Replacement and Enhancement The following vehicles and equipment are scheduled for replacement in 2017 at a total estimated cost of $1,460,000: 4 Light Duty Trucks, 2 Loader Back Hoes, and 4 Heavy Duty Trucks. Also included in the Fleet Capital is the additional Fleet units for growth related activities related to Winter Control and Solid Waste Collection to maintain current levels of service funded through Development Charges at an estimated total cost of $760,000. These vehicles will only be needed if the FTE increases proposed in the Public Works Operating Budget are approved. Sidewalk Reconstruction The municipal sidewalk inventory totals 389 kilometers. Sidewalks typically have a 50-year life cycle. Life cycle costing provides a base line performance measure to verify if replacement schedules and funding are sufficient to meet the established life cycle. The recommended budget provides funds to replace approximately 3,200 linear metres of sidewalk or 0.80% of the existing inventory. 74

98 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 2017 Budget provides for $75,000 to implement the plan, and $90,000 to plant trees. 75

99 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. 76

100 Public Transit Operations Transit seeks to provide conventional public transit service to within 450 m of 90% of the residents of the City, as well as a parallel public transit service for people with physical disabilities. Ridership figures are a key transit statistic and are shown in the following chart. Ridership levels in 2017 are expected to increase slightly over 2016 levels although the trend of customers moving to more affordable fare options are impacting revenues. The introduction of the Fleming U-Pass service in Peterborough Transit Bus the fall of 2016 is expected to increase transit revenues and ridership in the last quarter of 2016 and through The 2017 budget implements Phase 2 of the Fleming service and includes $781,000 in new revenue and additional costs of $770,000 to implement 10,250 additional hours of service which includes a second express route. Enhanced service for snow clearing at transit stops, as approved by Council as part of the Updated Winter Services Report (USPW15-012), will continue in The base budget includes additional revenue hours of service for a continuation of the special New Year's Eve transit service and the Statutory Holiday service that was introduced in The estimated net cost for these service enhancements is $142,000 after fare revenue for Statutory Holiday service has been accounted for. Sponsorship opportunities will continue to be explored to help fund these service enhancements. Implementation of the new computerized Handi-Van reservation system in 2015 has improved customer service by increasing capacity. Handi-van ridership in 2015 was up 10% compared to 2014 and ridership in 2016 is expected to increase by an additional 5-7% over 2015 levels. The base budget also includes service level enhancements to the Handi-van transit system approved as part of Report USTR on October 3, ,250 hours of additional Handi-van service, 2,910 hours of service to implement a new Community Bus Service, and additional staff in the customer service area represent an additional net cost of $284,800 to implement these service enhancements. 77

101 No fare increase is being recommended in 2017 for regular passenger service. The budget is based on 145,100 ( ,370) revenue service hours, which are split with conventional transit at 127,900 ( ,250) hours and specialized transit at 17,200 ( ,122) hours. The 2017 Budget includes the continued contribution to the Transit Reserve in the amount of $600,000. 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 78

102 specialized public transportation services. Under the program, it is estimated the City will receive $1.58 million in The funds are placed in a Provincial Gas Tax Reserve Fund and then transferred from the reserve fund to finance authorized expenditures. 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 2017, the full amount of $1.58 million will be drawn from the Provincial Gas Tax Reserve Fund to offset expected costs. Parking Parking operations will have a surplus for 2017 as the debt service cost incurred for the King Street Garage was fully paid in The debt for the Simcoe Street Garage was paid in full at the end of The Parking Reserve contribution has been eliminated for 2017 as the Reserve has a current uncommitted balance of $374,000. Major rehabilitation projects for both parking garages were completed in Parking revenues are expected to recover slightly in 2017 as garage rehabilitation projects end in 2016 despite the loss of revenue from the Louis Street Lot anticipated in mid Parking control services are provided by Securitas Canada. The current contract is for a period of five years starting April 1, 2016 until March 31, 2021, with the option for three one-year extensions at the sole discretion of the City. 79

103 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 result of this program has reduced energy costs by approximately 85% and realized savings on annual re-lamping costs. 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 to ten years old. The last replacement program was completed in the fall of Beginning in 2011, Council directed staff to transfer any unused Traffic Signal Maintenance Budget at the end of the year to reserve. The reserve has a current uncommitted balance of $581,200. Future replacement of LED lamps will be funded through the Reserve. The Traffic Operations Review project, initiated in the fall of 2016, is expected to be completed in 2017 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. Recommendation That any unused Traffic Signal Maintenance Budget, at the end of 2017, be transferred to the Traffic Signal Reserve, subject to the overall year-end position and that, if the actual 2017 traffic signal maintenance costs exceed the 2017 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. 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. 80

104 Transit - Capital Budget 81

105 With the introduction of the Public Transit Infrastructure Fund (PTIF) in the 2016 federal budget, approximately $5.4 million in new transit funding is expected to be available to the City in the 2017/2018 fiscal years. The Federal funding program requires a minimum 50% matching contribution from municipalities. Funds in 2017 will be used to begin construction of a new bus storage facility, purchase new conventional and handi-van buses, implement ITS technologies to provide enhanced passenger information systems, and upgrade a number of transit stops. Transit Garage Replacement The current Transit Garage at the Townsend Street Yard is undersized and is only capable of storing 42 buses inside. With a Conventional fleet that has grown to 56 buses, 14 buses plus the entire fleet of 10 Handi-vans require outside overnight parking. As a result, vehicles cannot be properly washed and cleaned at the end of the day to ensure that interior surfaces and the advanced accessibility features (kneeling buses, accessible ramps) do not freeze up during the winter. The inability to properly service and maintain buses reduces the life expectancy of the asset and increases longer term maintenance costs. The need to warm up buses, parked outside overnight, adds to non-productive staff time, and in the case of Handi-van vehicles, reduces the hours available to provide revenue service to passengers. Funds in 2017 will be used to undertake a Transit Garage relocation study, complete design work for the selected location and secure necessary approvals. Transit Buses - Conventional Buses and Buses for Persons with Disabilities The City currently has a conventional transit fleet consisting of 56 buses as of December This includes the five new buses delivered in October 2016, one for the vehicle replacement program and four for the introduction of the new Fleming Express Services. By December 2016, the average fleet age will be 9.0 years and 91% 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. Since 2012, 17 low-entry fully accessible buses have been purchased; ten for vehicle replacement and seven for service expansion. The City also has a specialized transit fleet consisting of ten purpose-built small buses/vans, eight of which are in peak period revenue service daily. In 2013, six high-floor lift equipped vans were purchased replacing vehicles which were 11 years of age and older. The next proposed bus replacement year is

106 A portion of the PTIF funds received in 2017 are recommended to be used to support the bus replacement program for both the conventional fleet and buses for persons with disabilities. Five new fully accessible replacement buses will purchased for the conventional fleet, making all of the conventional transit buses fully accessible by Requested funding will also implement recommendations from Report USTR and USTR to replace the four older Handi-vans, provide one new Handi-van for future service expansion, and provide one new low floor specialized transit vehicle to implement the new Community Bus Service. Intelligent Transit Systems: Integrated Real Time Passenger Information System An integrated real time passenger information system is an Intelligent Transit System enhancement designed to enhance customer service for transit riders. The system would use GPS devices on board transit vehicles to transmit vehicle location information to a central computer system, which would calculate the estimated arrival time of the next bus at each of the 620 transit stops in the City every minute. Information would be available to customers via a website interface, through smartphone applications, text message services, and on sign displays at the downtown terminal and major transit hubs. Funding of $300,000 was initially approved in the 2013 capital budget to initiate the project, however additional funding requested in 2017 would allow deployment across the entire fleet of conventional buses. Transit Stop-Shelter Upgrades A portion of the PTIF funds received in 2017 will be combined with existing pre-approved funding to accelerate our transit stop and shelter upgrade program. Requested funds will allow for an estimated new fully accessible transit stops with shelters, concrete pads, and concrete sidewalk connections constructed to enhance accessibility to major transit stops. The replacement and expansion of transit stop shelters will prioritize bus stop locations where higher than average passenger usage exists, in areas of severe environment and/or where the passenger demographic is primarily seniors. Currently there are 67 shelters in the city, 57 of which are City owned, with the remaining 10 privately owned or owned by a transit shelter advertising company. 83

107 Parking - Capital Budget Replacement of Operations Vehicles Vehicles are utilized for enforcement patrol and operation activities. The Parking section currently deploys four vehicles, a 2016 compact car, a 2013 compact car used for parking enforcement, and two 2011 compact pickup trucks used for maintenance and revenue collection. 84

108 Traffic and Transportation Capital Budget 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. There are currently 128 traffic signals city-wide (twelve are Intersection Pedestrian Signals). Through new and road reconstruction programs, 85

109 three additional signalized intersections will be added to the inventory in For future years, it is recommended that $107,700, indexed each year by 3%, be allocated for Traffic Signal Infrastructure Improvements. Demand Management Capital Budget 86

110 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. 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. 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 2017 Budget assumes a sewer surcharge rate of 95%, the same as in

111 Average Daily Flows at Waste Water Treatment Plant Description (est) Average Daily Flows (M 3 ) 47,334 43,138 44,051 44,251 39,404 40,000 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. 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 to meet stringent environmental regulations. Waste Water Treatment Plant 88

112 Environmental Protection Capital Budget Peterborough WWTP Process Modifications / Improvements Replace aging mechanical structures in the (4 older) primary and (4) secondary clarifiers (total 8 tanks) to improve sludge management; repair and seal concrete in these same tanks as needed to reduce tank failure risk; replace aging centrifugal blowers with high efficient turbo blowers to reduce hydro consumption; conduct an air flow study to identify air flow bottlenecks; clean air diffusers in aeration basins to increase oxygen transfer ability to optimize new blower performance and aeration basin performance. 89

113 Equipment Upgrades and Replacements The investment of $790,000 in 2017 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. 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. 90

114 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 if a new agreement is reached. 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. Once issued implementation will begin. 91

115 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. The Division manages the Peterborough County/City Waste Management Facility the Material Recycling Facility, the Household Hazardous Waste Depot and the Harper Road Composting Facility. 92

116 Budget pressures will come from continued low selling prices for recyclable material, increased property taxes associated with the landfill, and fluctuating Stewardship revenues. A new leaf and yard waste composting facility is to be constructed at Bensfort Road due to the forced closure of the Harper Road compost facility. The Solid Waste Collection budget includes funding for one additional FTE and collection vehicle to maintain the existing level of service. 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 2017 are $3.2 million ( $3.1 million). Disposal rates for loads of 101 kg or more are recommended to increase from $90 to $95 per tonne. The County will contribute $2.0 million ( $1.9) towards the gross costs of the landfill operation and receive approximately $1.7 million (2016- $1.5) in revenues for a net cost to the County of $0.3 million ( $0.4). The 2017 contribution to the Waste Management Reserve Fund is $660,000, the same as In addition, the City will contribute $227,000 to a Landfill Closure and Post- Closure Reserve, the same as in 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. New, more challenging diversion opportunities continue to be investigated, including organics, reuse, carpeting, and textiles. Waste Management Program Long-term Projections Each year at budget time, staff projects the ten-year revenues and expenditures that affect the Waste Management Reserve Fund. As shown on the following charts, if the $4.0 million Construction and Transfer of Leaf and Yard Compost Facility is built in , the reserve fund will move into a deficit position and continue in that position for at least eight years. A combination of Capital Levy, debt, and delaying some future years Capital projects will be required. 93

117 Waste Management Program Operating Revenue and Expenditure Projections (2017 to 2026) 94

118 Waste Management Division - Capital Budget Waste Management Program Capital Expenditures and WMRF Projected Balances (2017 to 2026) 95

119 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

120 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. 97

121 Community Services Departmental Summary Capital Budget 98

122 99

123 Community Services Administration Division - Operating Budget 100

124 Administration The budget includes the Office of the Community Services Director. The request for a new dedicated Special Events Coordinator position included in the Draft Budget was not approved by Council. Sustainability The activity includes an amount of $50,000 in the Budget for the Low-Flow Toilet Rebate Program, funded from the Waste Water Reserve Fund. Community Project and Investment Grants The Community Services Department administers and coordinates the City s Community Grants program in support of local non-profit, community-based organizations that provide direct programs, services, or activities that enhance the quality of life for Peterborough residents in the areas of social services and health, arts, culture, heritage, recreation, or the environment. The Community Project Grant program, budgeted at $21,000, provides grants ranging from $250 to $1,000 to informal not-for-profit organizations located within the geographic boundaries of the city. Annual applications are reviewed through a competitive process by a staff Grant Review Committee, which recommends funding awards for Council approval. The Community Investment Grant Program, traditionally budgeted at $210,000, provides grants ranging from $1,000 up to $15,000 as matching funds to incorporated, not-forprofit 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. The 2017 Draft Budget includes a $20,000 increase in Investment Grants for a total of $230,000 in response to growing demand. 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. 101

125 The budget includes an anticipated $50,000 Service Grant to Peterborough Agricultural Society (Report CAO15-013, dated April 27, 2015), and a $35,000 Service Grant to Artspace (Report CSD15-023). New Canadians Centre The provision of $96,436 includes an amount of $75,000 in support of the Syrian Refugees. Recommendation That any surplus funds at the end of 2017 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 2017, be transferred to the Sustainability Reserve, subject to the overall year-end position, and that if actual 2017 costs exceed the 2017 Budget, funds may be drawn from the Sustainability Reserve. 102

126 Community Services Administration Capital Budget Canadian Canoe Museum Reinvention/Relocation To plan for a major construction project of this scale, the Canoe Museum utilized additional staff resources and consulting resources, totaling $270,000 in 2015 and $200,000 in The Canoe Museum received Trillium funding for this phase. The City provided $100,000 annually in 2015 and 2016 to leverage other support. Staff recommend the additional $100,000 in

127 Sustainability Projects An annual capital budget of $125,000 has been established for sustainable projects or to leverage private sector funding in previous years. 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. Residual funds are available to carry on the program in 2017 without adding new monies to the budget. 104

128 Recreation - Operating Budget This activity includes the cost of providing the necessary staff and resources for the planning, supervision and evaluation of a variety of recreation services. Services under the supervision of the Recreation Division include: community development and community assistance activities, management of outdoor facilities, direct delivery programs and special event projects. The Administration budget also includes an allocation for program subsidization of children in recreation programs. The expenses to promote and advertise Division programs, services and rental facilities are included as part of this budget. 105

129 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 $10,300 in 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 2017 Recreation Budget for the Campground operation includes a nominal amount 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. Of the $2.6 million gross budget, $0.58 million, or 22% are funded by Fleming College, as part of the partnership agreement with the City of Peterborough. User fees have been reviewed and changed to be on par with the market. Recommendation That any surplus funds at the end of 2017 for the Peterborough Sport and Wellness Centre be transferred to the PSWC Capital Conservation Reserve for future capital improvements. 106

130 Recreation Capital Budget Beavermead Campground Park Implementation The architectural design development drawing and detailed design for the washroom building is being recommended within the 2017 budget, with tendering, and construction in 2018 at an estimated cost of $900,

131 Boat Launch Review As a risk management measure, this budget undertakes an inventory and analysis of all municipal boat launches within the City. The intent of this initiative is to determine their feasibility, structural soundness, necessary repairs, and develop an ongoing maintenance program. 108

132 PSWC Cardio Spin Bike Replacements The project will replace 25 Spin Bikes and computers that are beyond their life cycle and are experiencing increased maintenance costs and down time. Peterborough Sport & Wellness Centre 109

133 Arts, Culture and Heritage Division - Operating Budget As an integral part of the Community Services Department, the Arts, Culture and Heritage Division coordinates the operations of the Peterborough Museum and Archives, the Art Gallery of Peterborough, the Peterborough Public Library, and the Heritage Preservation Office. The Division works with other departments and divisions to assist in the development and provision of arts, culture and heritage activities, facilities, services and resources. The Division Manager is responsible for implementation of the Municipal Cultural Plan (MCP) and provides staff support for the Arts, Culture and Heritage Advisory Committee. The Division Manager represents the Corporation as a member of the Peterborough Partnership Council on Immigrant Integration and manages the Immigration Portal. 110

134 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. Included in the 2017 Budget is $50,000 for a Conservation District Preservation Incentive Grant program as approved through Report CSACH dated June 20, The funds will be used to create ten, $5,000 matching grants to support heritage conservation and restoration work. 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 2017 operating budget of the Museum reflects the revised estimate of anticipated heating and utility costs; and staffing compensation increases. Art Gallery The Art Gallery of Peterborough (AGP), incorporated in 1974, is a Registered Charity public art gallery dedicated to exhibiting and collecting contemporary Canadian visual works of art. Information about artists and exhibitions are offered through publications, lectures and educational programs. The 2017 operating budget of the AGP reflects the revised estimate of anticipated heating and utility costs; and staffing compensation increases. Library The Library moves back to the Aylmer Street location in 2017, which will result in increased revenues from room rentals. Due to having a new building, repairs and maintenance have decreased at the Main branch, but have increased at the Delafosse Branch due to its age. The majority of the increase year over year is a result of normal increases in staff compensation, as well as some internal rationalization to adjust revenues and expenditures based on 2015 year end and 2016 actuals. 111

135 Arts Culture and Heritage Capital Budget Public Art Through Report CSACH on April 6, 2009, Council approved the recommendation to provide 1% of the annual capital levy for the City's annual capital budget process to fund Public Art. In 2017, an additional $40,000 is being requested to cover projects for Canada's 150th celebrations. This will bring the budget up to $120,000 in 2017, but it will return to $80,000 in subsequent years. 112

136 Municipal Cultural Plan The MCP was adopted by Council in April Throughout , staff achieved completion on a number of signature objectives. In 2017, staff will continue to implement the plan and collaborate with staff from other divisions on the MCP objectives and recommendations. 113

137 Library Capital Budget Additional Library Space In 2016, the Administrative Staff Committee approved the tender for award of construction, which started June The 2017 amount was pre-committed through Report CPFS16-006, dated February 16, Renovations will include slab repairs, hazardous materials abatement, HVAC replacements, roofing replacement and internal reorganization, a new entrance, two new elevators, improved accessibility both inside and outside, and cold weather heated walkways. Expansion and renovations will improve core library services and result in a net gain of 9,000 square feet of public space. Collections Acquisition An annual amount is provided to replace the Library s collection. 114

138 Art Gallery Capital Budget 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. 115

139 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. 116

140 The Division continues a proactive approach in 2017 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. Utility costs across all four facilities are projected to increase by some $171,400 with other budget expenditure lines reduced to help cushion the impact. Revenue projections for Corporate advertising have been moved to Corporate Services as it is projected this will be managed by the Corporate Sponsorship Coordinator in The debenture for the Evinrude Centre was full paid in There are seven 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 2017 for Arenas be transferred to the Arena Equipment Reserve for future equipment purchases. 117

141 Arenas Capital Budget New Arena Facility A replacement facility for Northcrest Arena is recommended to contain a twin pad facility, team training centre, indoor track, multipurpose rooms, commercial space and leased office space built to a LEED Certified standard. It is anticipated that a new twin pad facility will operate more efficiently and will see a lower municipal cost investment than the existing Northcrest Arena due to economies of scale, energy efficiencies and new revenue potential. Council will review options for a competitive pool and determine if it is included in Phase II or a later phase of development. 118

142 Given the updated capital cost in Report CSD15-021, this project has been shifted out by one year: Year Value Description 2015 $500,000 Phase I Feasibility Study, Schematic Design, and Costing Study 2016 $1,500,000 Phase II Schematic Design, technical and Costing Study 2017 $1,200,000 Phase II b Detailed Design and Tendering $30,300,000 Phase III Contract award, 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 other sources, including funding programs and sponsorships. The prospect of major infrastructure funding for recreation and sport facilities continues to be a consideration for this project. Including the pool in the detailed design and tender phases is recommended as the most cost-effective approach. In the event the funding is not available for the pool at the onset of the construction phase, the pool can be eliminated. This ensures the project is shovel ready should funding become available. 119

143 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 2017, the total $66.0 million gross expenditures for the Division are split between Social Assistance at $51.2 million, Children s Services at $14.1 million and Community Development Program at $0.7 million. 120

144 121

145 Social Services Gross Expenditures Social Services Gross expenditures are funded from a number of sources as set out in the following chart. 122

146 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 123

147 Social Assistance For the 2017 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 and discretionary benefits and addictions program to 97.2% provincial in Continue to determine necessary local business process changes and data gathering strategies required due to SAMS and the beginning of the use of electronic subsidy claims submissions. 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 early in Pearson Child Care move and expansion early in Co-leading the Healthy Kids Community Challenge with Peterborough Public Health 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 2017, the Ministry will be recalculating the maximum funding available, but it is estimated that the City could allocate an additional $2 million of gross spending in the 2017 OW admin budget. This would provide an additional $1 million in provincial subsidy but would require another municipal investment of $1 million to cover the other 50%. There is one below the line staffing request in the OW and Employment Assistance program in 2017, but it is contingent on the approval of the Transit Division led Affordable Transit Program. If the program is approved, Social Services would require a 0.6 FTE administrative position to support the eligibility and technical interface to assist low income families in obtaining subsidized transit passes. If this position is approved, it would add $30,657 to the City's net tax levy for

148 The new provincial database for Ontario Works and Ontario Disability Support Program continues to improve since its implementation in November The electronic monthly claims reconciliation process goes live late October 2016, with claims from April 2016 to December 2016 to be completed by the end of January The first real time claim will be January 2017, processed in February 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. The renovations of the Social Services offices started in September The purpose was to ensure office space met the Accessibility for Ontarians with Disabilities Act standards for clients and staff, improve client service flow and make the most efficient use of the existing space. In July 2016, report CPPS Budget Adjustment and Award of RFT T for the Social Services Renovation Phase 4 and 5 was approved, adding $440,000 to this capital project, for a total of $3,010,000. This project is funded from a loan from the Social Assistance Reserve and will be paid back out of the OW Administration line over a period of 10 years. The renovation project will be completed early in 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 2017, the value of the upload for the City is estimated to be $924,000. Of this amount, $94,670 has been reinvested within the Division, in Municipal Child Care, Discretionary Benefits and Homelessness. As explained in the Homelessness Section, an additional $100,000 was committed by Council in March 2016 for the Municipal Rent Supplement program, $20,000 in the Social Services Homelessness Budget and $80,000 in the Housing Division. The balance was used to address other financial pressures across the City. 125

149 Ontario Works Mandatory Benefits Caseloads in both the City and County are dropping slightly; therefore the budgeted average caseload has decreased by 1.9% for both the City and County. The City/County cost share of Municipal expenses will remain at 83%/17%. This cost share applies to OW and Employment Assistance Administration, Addictions, and OW Formal and Informal child care fee subsidy. In the 2016 Provincial budget, the Province announced changes to the Ontario Works mandatory benefits, including a 1.5% rate increase for couples and families, 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 following chart. 126

150 The following Chart provides supporting calculations for the OW benefits. City and County OW 2017 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, ,888 5 Allocation of Total 83% 17% 100% Case Load Change Over Budgeted Case Load (1.9%) (-1.8%) (-1.9%) Increase/(Decrease) Over 2016 Budgeted as % Case Load Increase Over Projected Actual Case Load Increase Over 0.0% 0.0% 0.0% 2016 Projected Actual as % Budgeted Average Monthly $ $ Cost Per Case Year to Date Actual Average $ $ Monthly Cost Per Case August Budgeted Average Monthly $ $ Cost Per Case $ change over 2016 Budgeted $6.18 $ % change over % 1.4% Budgeted 15 Total net cost based on caseload $27,114,000 $5,747, Provincial Subsidy at 97.2% $(26,354,808) $(5,586,084) 17 Net Cost $759,192 $160,

151 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 2017 is the uploaded percentage or 97.2% ($9.72). During the 2014 budget process, City Council approved increasing the funding from the tax base by $80,000 per year for five years, to 2018 to fund the City portion. For 2017, to assist with keeping the tax increase down, only $49,485 was added to the tax base with the remaining costs taken from reserve. Dentures remains a significant pressure in the discretionary benefits budget. Often, the full denture budget is exhausted early in the year and a wait list is established in case under spending in other discretionary lines becomes available for use. In 2017, staff has increased the denture budget by $50,000 to $150,400 for the City. $25,000 of this increase will be paid for with a one-time draw on reserves. $10,000 has been added to the County denture budget. This increase will hopefully either eliminate or significantly shorten the wait list for dentures in One request that is below the line is a 10% increase the adult dental procedure fees that currently is based on the MCSS 2009 fees. The rates have not been increased since 2009 and these outdated fees are impacting OW adults access to dental providers who are reluctant to service our clients due to these low fees. Based on the current budget, this would increase the discretionary budget and net tax levy by $56,060 for the City and $10,170 for the County. Homelessness In October 2016, the Province announced that the Community Homelessness Prevention Initiative (CHPI) funding for Peterborough would be $3,347,645 for April 1, 2017 to March 31, 2018 and $3,380,790 for April 1, 2018 to March 31, This is a small increase from the current period's funding of $3,314,500. This increases the 2017 budget by $24,858 and this additional amount was added to support Housing First initiatives. On March 29, 2016, Report CSSS Budget Update Related to Housing Stability and Rent Supplements was presented and Council approved an additional $100,000 per year for the Municipal Rent Supplement Program. Social Services has budgeted $20,000 of this additional $100,000 to the Housing First rent supplement program under the Homelessness budget and the $80,000 balance has been added to the Housing Choice program administered through the Housing Division. This additional $20,000 as well as some cost of living increases has added $29,500 to the City net requirement for the Homelessness programs. There is also a draw from reserves of $50,513 required to keep other areas of the budget at 2016 levels. The County request has remained at the cap of $204,000 as stated in the Consolidated Service Manager Agreement. 128

152 Children s Services Since the implementation of full day kindergarten, child care programs continue to review the new realities of child care resulting in changing their licences so that they may remain viable. As a result, licenced child care spaces continue to increase in both the City and County, but these increases will not affect the cost share of Children s Services between the City and County in The cost share will remain at 72% City, 28% County in There are a few changes budgeted for in the Municipal Child Care program. To help offset the rise in costs, a 2.1% increase in parent fees has been included. The main contributer to cost increases has been the legislated requirement to increase staff to child ratios during rest times that began in February The Draft Budget includes two additional Early Childhood Educators for a net budget impact of $45,700. Pearson Child Care will be moving to a new facility located in the PCVS building, resulting in an increase of licenced spaces to 39 from 26 (15 toddlers, 24 preschool spaces). There are provincial capital funds available that will cover the costs of the required renovations to the classrooms. The playground that will be constructed for the program will be available to the neighbourhood after hours. Ontario Early Years Child and Family Centres (OEYCFCs) As of January 1, 2018, the management of OEYCFCs will be moved to municipalities will be a transition year. Data Analysis Coordinator (DAC) positions will move to municipalities to assist with the local needs assessments and developing local service responses. Included in the 2017 budget is $71,371 of 100% provincial dollars to fund the DAC position. As well, on October 4, 2016, the Province announced a one-time allocation for municipalities to support the costs of determining community needs, prospective service locations, service providers and program offerings, developing local service system plans and establishing local service contracts to prepare for program implementation by January Peterborough's allocation is $87,719. Community Development Program The Community Social Plan has been recently renamed the Community Development Program (CDP). The new name reflects the growing scope of the program such as the Healthy Kids Community Challenge, Homemakers, a Community Well Being Plan and the Seniors Portfolio, as well as continuing to improve the delivery of information, referrals and support to enhance social development and fill service gaps. For 2017, staff are recommending that the CDP program move back to a 50/50 cost share for the complete program. The recommended cost share better reflects the shared programming across the City and County. The change in cost share will add $18,750 to the City net requirement. 129

153 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. Funding of $825,000 was awarded and is to be used from now until March 31, April 1, 2017 will be the start of the third year of the program. An Age-Friendly Plan is being created for the City and County of Peterborough and should be released in early 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 is a collaborative project being administered by the Municipality of Trent Lakes but delivered by the Community Development Program and Social Services Division. To continue the work on the plan, there is a below the line request for a new position. The Seniors Coordinator, which began in September 2014, is currently working through a Trillium Grant and Reserve Funds from the Community Development Program Budget in partnership with the Municipality of Trent Lakes. The position would continue the work being done related to the existing Seniors Portfolio and the growing work related to the Age-friendly Plan for the City and County. The position would serve as a point of contact for residents, agencies and local governments related to the growing seniors' issues in the community. If approved in 2017, the salary and benefits would be paid with a draw from the CSP reserve, therefore would be no effect on the tax base levy this year. In 2017, a Community Well Being planning process will take place. This plan will guide the work of the Community Development Program and better define the municipal role to improve well being of individuals and the community across the City and County of Peterborough. $50,000 has been budgeted to fund engagement training for staff, digital approaches and technology, data gathering and additional staff time for the development of the framework. This will be paid for through a draw from the CSP Reserve. 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, and community projects requiring support, as well as borrowing approximately $3.0 million to fund the office improvements (to be paid back over a period of 10 years). 130

154 The following shows the draws and the expected balance at the end of 2017: Estimated Balance beginning of the year $1,653,162 Discretionary Benefits $25,000 Homelessness (CHPI) $50,513 Brock Mission (capital project) $286,750 Expected Draws $362,263 Estimated repayment of loan P&I ($335,237) $27,026 Projected Balance end of year $1,626,136 Overall Net City/County Share Overall the County s net share of the Social Services operating budget has decreased by $225,781 or 10.8% and the City s net share has decreased $829,330 or 10.4%. Recommendations That any unused Homelessness net budget at the end of 2017 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 2017 Homelessness costs exceed the 2017 Budget, funds may be drawn from the Reserve. That any unused Community Development Program net budget at the end of 2017 be transferred to the Social Services Community Social Plan Joint Reserve for future program development, subject to the overall year end position and that, if actual 2017 Community Development costs exceed the 2017 Budget, funds may be drawn from the Reserve. That any remaining unused Social Services net budget at the end of 2017 be transferred to the General Assistance Reserve, subject to the overall year end position and that, if actual 2017 Social Services costs exceed the 2017 Budget, funds may be drawn from the Reserve. 131

155 Social Services - Capital Brock Street Mission Revitalization and Supporting Housing The Housing and Homeless Plan was approved by Council November 12, Commitment 18 in the Plan outlined the need to improve the physical space and services for homeless men. A feasibility study was completed in 2015 outlining deficiencies that must be addressed, including the current building 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 PLHD16-004, Council 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. For 2017 and 2018, staff are proposing an additional $650,000 contribution towards the cost of the shelter improvements, but expectations are that Brock Mission 132

156 raise a matching $650,000 through a capital campaign. The additional funding in 2017 and 2018 is proposed to be cost shared between the City and County using the caseload split of 83/17, with the County share of $55,250 being paid for as follows; $38,250 requested from the County and the remaining $17,000 being drawn from the joint portion of the Social Services reserve. The City share of $539,500 to come from the Social Services Division General Assistance Reserve in two installments of $269,750 each in 2017 and The remaining cost of the building will be the responsibility of Brock Mission through financing and a capital campaign. 133

157 Planning and Development Services Departmental Summary - Operating Budget The Planning and Development Services Department includes the Planning Division, Geomatics/Mapping 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. 134

158 Planning and Development Services Departmental Summary Capital Budget 135

159 136

160 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. 137

161 Planning Capital Budget Property Acquisitions For 2017, the property acquisitions project includes an allocation of $400,000 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. 138

162 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 six more years. Charlotte Street Renewal and Louis Sreett 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 Storm Sewer 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 PLPD14-012, include: a large oval hard surface for multi purpose use in the summer and an ice skating surface in the winter; multi purpose building, 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 Farmer's Market Urban Park and Charlotte Street - Aylmer Street to George Street - $4.9 million Charlotte Street - (George to Water) and east side of George Street - $2.1 million Central Area Master Plan (CAMP) Implementation Phase The Official Plan directs that the City pursue a comprehensive program of downtown enhancement. The 2017 request provides for the following: a) CAMP #10 - Annual maintenance and safety fund - $100,000 b) CAMP #17 - The priority functions of the Downtown include Major Office and Institutional Uses. This project will provide the second of three years of $100,000 seed funding per to establish an Entrepreneur Centre in the downtown. 139

163 Trail Development In 2015, the City acquired the abandoned C.P. Rail line from Townsend Street, east to Ashburnham Drive which is adjacent to the Naval Association property. With the completion of the Trans Canada Trail from Lansdowne Street East to the City Limit in 2015 and as part of the Ashburnham Drive reconstruction, the surrounding links are now being considered. The first link is the connection from the Navy Club into Beavermead Park. As part of this trail link there is a substantial grade change within the floodplain that needs to be addressed. Included with the rail line is a bridge structure that crosses Whitlaw Creek that will need improvements to be a safe structure. The 2017 request of $100,000 is to carry out the detailed design and engineering necessary to construct these components of the trail. 140

164 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 2017 request is for the following: - Faḉade Improvement - $100,000 - Municipal Incentive - $100,000 - Residential Conversion and Intensification - $400,

165 Growth Areas Capital Budget 142

166 143

167 Industrial Parks Capital Budget Trent Research and Innovation Park - Phase 1 Trent University has reserved approximately 85 acres along the north side of Pioneer Road for the establishment of a sciencebased research park. Building upon the success of the DNA Cluster initiative, the new Trent Research and Innovation Park 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 will commence construction late fall 2016/spring The external servicing program and Pioneer Road upgrades are being handled by USD under Capital Budget reference #

168 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 approximately $1.5 million was secured in prior years for this purpose. The 2017 request is for an additional $1.5 million to support internal servicing, lot grading and common elements within the research park. It is expected that the first tenants will commence building construction in the summer of Trent Research and Innovation Park Business Plan Implementation The City has made significant investments in serviced industrial land, the Airport and the Trent Research and Technology Park. Having established an inventory of economic development assets, this project is targeted at establishing the organizational model and business strategy to make it as successful as possible. A university based research park is more than a collection of businesses - it requires concentrated effort to establish a culture of innovation and creativity between tenants, the university and the broader community. The funding request is over and above the core funding to Peterborough Economic Development (PED) as it represents an activity that PED will be actively engaged in but not directly responsible for. The objective, over the long-term, would be to support this activity from revenues generated by ground leases. 145

169 Geomatics Mapping Capital Budget ESRI Stabilization Project ESRI is the City s geographic information systems (GIS) software product. With it, the City produces all of its maps and corresponding spatial data used in decision making and reporting across the Corporation. This project contains a number of initiatives to upgrade and stabilize the product and will be the key software tool for the recently approved migration to an Open Data environment to provide easy and free access by the public to the City s GIS data sets. 146

170 Easement Mapping The City currently manages easement records in several systems for different uses by departments across the municipality and has identified the requirement to enhance, manage and maintain these records in a GIS environment. 147

171 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 18 nonprofit providers and Peterborough Housing Corporation (PHC) for which the City is the sole shareholder. The City funds and administers housing programs for the City and County. Senior government funding is used to construct affordable rental housing, and assist low-income households through loans and grants. 148

172 Of the 2,000 social housing units, about 80% are rent-geared-to-income and 20% are market rent units. As of September 2016, 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 2017, the County s share will be 54.5% (54.2% in 2016). 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 2017 Housing Operating Budget at the end of 2017 be transferred to the Housing Reserve, subject to the overall year end position and that, if actual 2017 Housing costs exceed the 2017 Budget, funds may be drawn from the Housing Reserve. That any surplus in the 2017 Housing Choice Rent Supplement Program at the end of 2017 be transferred to the Housing Choice Rent Supplement Reserve, subject to the overall year-end position and that, if actual 2017 Rent Supplement costs exceed the 2017 Budget, funds may be drawn from the Rent Supplement Reserve. 149

173 Housing Capital Budget Incentives for Affordable Housing The City provides support in various forms such as development charge rebates, municipal tax savings, land contributions and building fee discounts for developers. The City has been making annual investments since Two examples currently in progress is support for Brock Mission at 217 Murray Street in the amount of $1,053,000 and 342 Downie Street in the amount of $264,000. Emergency Capital Repairs The $125,000 per year is to be utilized to assist social housing providers with necessary capital repairs and upgrades that are considered a priority, and beyond the ability of the housing provider to fund by themselves. This funding, when expended, 150

174 will be paired with available incentives, funding from federal and provincial levels of government, or as cost sharing opportunities whenever possible. These projects can be prioritized based on the up to date Building Condition Assessment study. This capital reserve will be funded from City and County contributions based on the weighted assessment sharing ratios and allowed to accumulate until required. 151

175 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 fourth year of the Airport Management and Operations Contract which has seven years remaining (November 30, 2023), following a three year extension in The Contract guarantees firm pricing 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 2017 Operating Budget reflects additional day-to-day costs of approximately $70,300. 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. Revenue Projections for 2017 have been adjusted to reflect revised fees and new charter fees increasing revenues by $12,000. Excess development review fees are transferred to a reserve to be used for future airport development related expenditures. An annual contribution to the Airport Development Debt Servicing Reserve of $1.2 million is necessary to fund the City s share of the ISF Airport Expansion Capital Project. The dedicated Pavement Reserve of $50,000 to maintain the asphalt surfaces will continue. Quality assurance audits are required by Transport Canada's regulated 152

176 Safety Management System continues with an annual contribution of $10,000 for an external quality assurance audit to be completed every 3 to 4 years. Recommendation That any excess Airport development review fees at the end of 2017 be transferred to the Airport Development Review Reserve for future Airport Development related expenditures and that, if the 2017 Airport development review costs exceed the review fees, funds may be drawn from the Airport Development Review Reserve. Boeing at Peterborough Airport 153

177 Airport Capital Budget 154

178 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. General Aviation Expansion In response to market demand, an extension of the General Aviation Area will be constructed on the east side of Apron III opening up eight additional lots for aircraft hangars. This capital project will construct an access road, parking lot and installation of hydro and fencing. Building Demolitions The Airport is required through Transport Canada regulations to maintain the Obstacle Limitation Surface (OLS). The City has acquired three properties on Greenwood Road, east of the Otonabee River, in order to protect the OLS in perpetuity. These properties are not being resold as they are situated on flood prone lands and in close proximity to the Airport. Airport - East of Airport Road Clearing and Grubbing With the County having announced it is proceeding with the Airport Road realignment, the County will be completing the clearing and grubbing of the proposed road corridor. With the major clearing activity already undertaken to support the initial phases of the east of Airport Road industrial expansion it would be unwise to leave the north half of the expansion area uncut. Federal approvals to do the work have been received. 155

179 Obstacle Limitation Surface Tree Cutting There are properties with numerous trees nearing the protected surface which will require extensive tree cutting. These trees are located on City owned land on the south side of the Airport, and on properties covered by obstacle protection easements and agreements surrounding the runways. 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. 156

180 The Airport Marketing Project earmarks a dedicated funding stream for an enhanced 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. 157

181 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 2016 was consistent with trends, yet yielded slightly lower than expected revenues. Economists suggest limited growth in 2017, yet a predicted shortage in the inventory of residential building lots may negate any growth and actually lower building activity on a temporary basis. The 2017 Budget includes an inflationary adjustment to the permit fee schedule to ensure that revenues keep pace with inflationary costs within the Division. Recommendation That any unused Building Inspection Budget at the end of 2017 be transferred to the Building Division Reserve and that, if actual building inspection costs exceed the 2017 Budget, funds may be drawn from the Building Division Reserve. 158

182 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. 159

183 Capital Financing Costs Tax Supported Debt Charges The $11.0 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 2017 from current or previous years approval. Tax Supported Debt Charges exclude debt service payments recoverable from other non-tax sources such as Development Charges, Court House lease payments, Arena user fees and the Waste Water Reserve Fund. Tax Supported Debt Charges are up 13.1% over 2016 as a result of the Capital Financing Plan approved by Council on April 23, 2012 based on Report CPFS12-011, presented to the Budget Committee on April 4, Given the relatively low cost of borrowing in the marketplace and the need to move forward with badly needed capital works, the increase represents the full 1.0% of additional capital financing approved by Council through the 2017 Budget Guideline Report CPFS16-015, rather than a portion of the 1.0% being used to increase capital levy. 160

184 Capital Levy The $9.5 million Capital Levy provision represents the amount of money raised in the 2017 Operating Budget to finance the 2017 Capital projects. Additional details are provided in the 2017 Capital Financing Supplementary Information section of the Highlights Book. As part of the Budget approval process, Council eliminated $425,000 in Capital Levy from project # City Hall Board Room and Women s Washroom Renovation. However, the $425,000 was replaced through Report CPFS Budget Update. Transfers to Reserves and Reserve Funds A $1.6 million portion of the 2017 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 2017 Capital Budget. A $2.1 million portion of the 2017 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 2017 Capital Budget. 161

185 Property Taxation Costs ($3.3 Million) Tax Credit for Low Income Seniors and People with Disabilities Through three separate programs, this activity provides $127,700 in funding to protect low-income seniors and low-income people with disabilities from tax increases. The amount of the 2017 credit is based on a formula per property that limits the net tax levy increase (after considering the credit), from 2016 to 2017, to no more than 2%, and the amount of credit is capped at $561. Rebates to Registered Charities The 2017 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 $1.1 million and $0.3 million for Vacancy Rebates provide for a full $1.4 million of municipal tax loss due to assessment appeals and tax reductions/cancellations that may occur under various sections of the Municipal Act, Although 2017 is Year 1 of a new four year re-assessment cycle, the overall provision has not been increased from Subject to overall year-end position, any surplus or deficit budget at the end of the year is netted to a reserve for tax write-offs, that had an unallocated balance for municipal taxes of $467,037 as of December 31,

186 Municipal Property Assessment Corporation The $944,084 provision for the Municipal Property Assessment Corporation (MPAC) reflects an 1.0% increase over 2016 actual amounts billed by MPAC. MPAC is responsible for assessing all property in Ontario and operates under the authority of the Municipal Property Assessment Corporation Act. 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 2017 Budget provision of $384,000 includes the following incentives: Recommendation Brownfields Tax Assistance Program $160,400 Brownfields Rehabilitation Grant Program $124,600 Central Area Revitalization Grant $99,000 Total $384,000 That any adjustment to the City s 2017 requirement for the Municipal Property Assessment Corporation (MPAC), be netted against the City s 2017 General Contingency provision. 163

187 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. The balance in the Reserve is $1.4 million. Insurance and Risk Management The $633,950 insurance provision includes $360,000 for estimated deductible payments; $219,950 for premium payments for corporate coverage and $54,000 for broker fees. Any surplus or deficit budget at the end of the year is netted to an Insurance Reserve, which has a current balance of $0.9 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 $

188 psf, the City is responsible for the difference, which equates to an annual payment of $261,956. Contribution to Doctors Recruitment Incentive Reserve The current balance in reserve fund is approximately $26,500. A provision of $80,000 is included in the draft budget to fulfill future expected commitments. Contingency Provision The $0.9 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 2017 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 2017 tax write-off costs exceed the 2017 Budget, funds may be drawn from the Allowance for Doubtful Accounts Reserve. That any unused Employee Benefits Budget at the end of 2017 be transferred to the Employee Benefits Reserve, subject to the overall year-end position, and that, if actual 2017 employee benefits exceed the 2017 Budget, funds may be drawn from the Employee Benefits Reserve. That any unused Insurance Budget at the end of 2017 be transferred to the Insurance Reserve, subject to the overall year-end position, and that, if actual 2017 insurance costs exceed the 2017 Budget, funds may be drawn from the Insurance Reserve. That any unused 2017 Contingency Budget at the end of 2017 be transferred to the Capital Levy Reserve to be used for Capital works subject to the overall 2017 year-end position. 165

189 Transfers To Organizations For Provision Of Services Summary Operating Budget 166

190 Peterborough Police Services - Operating Budget 167

191 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 $359,528 does not include remuneration for members of the Police Services Board. Key highlights of the 2017 Budget include: 3 new permanent full-time positions: 2 Special Constables and 1 Validator position for a total of 194 full-time and 1.34 part-time equivalents. Additional Court Security and Prisoner Transportation Program grant in the amount of $891,115, an increase of $63,783 over the prior year. 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 2017 Guideline Report included recommendation (e) which read as follows: That the increase in the Police Services portion of the draft 2017 Operating Budget reflect no more than the Operating portion of Net Tax Levy increase (estimated to be 2.1%), and any increase in the net Police Services budget beyond the estimated Operating Portion of the Net Tax Levy increase be addressed by Council as part of the detailed 2017 Budget deliberations to occur in November of When the budget was compiled and the internal staff reviews complete, the outcome of the 2017 Operating portion of the Net Tax Levy increase is 1.3%. The amount is lower 168

192 than what was originally anticipated, however, staff accommodated the initial estimate of 2.1% in the Draft version of the Budget. The Police Services Board initially approved an Operating Budget reflecting an ask of $24,494,934, which represents an increase of 2.79% or $664,692 over and above the 2016 Council approved budget of $23,830,242. Subsequent to Board approval, news was received that additional Court Security and Prisoner Transportation Program grant monies would be received over and above what the Board had approved. The additional grant was $63,782, reducing the Budget ask from 2.79% to 2.53% or $24,432,932. The 2017 increase of 2.1% results in a dollar increase of $500,435, which left a difference of $102,255 over and above the guideline set by Council. Staff recommended that the additional amount be funded from the 2017 General Contingency provision. During Budget deliberations, Council accepted the recommendation, and the 2017 General Contingency provision of $ 628,287 was reduced to $526,032. Recommendations That $102,255 be added to the Police Services Budget, and that the amount be funded from the 2017 General Contingency provision. That any unused Police Services Legal fees Budget at the end of 2017 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 2017 Police legal fees costs exceed the 2017 Budget, funds may be drawn from the Policing Legal Fees Reserve. That any unused Police Services Budget at the end of 2017 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 2017 Police Services costs exceed the 2017 Budget, funds may be drawn from the Police Special Projects Reserve. 169

193 Police Capital Budget Various Police Capital Projects The Police Capital Budget includes $348,600 for seven Police vehicles, and $199,100 for various other computer hardware, software and equipment. 170

194 Police Services Business Plan The Business Plan is mandated by Section 30 of the Adequacy and Effectiveness Regulation (O.Reg. 3/99) of the Police Services Act. The Board must prepare a new Business Plan every three years. The business plan assists the Chief of Police as well as the Board in identifying levels of satisfaction, areas of concern and the future expectations of the public in the Policed communities. The process is fundamental in thinking about the staffing, resources, and organizational arrangements needed to meet present and future demands of the Police Service. A portion of the cost is recoverable from Development Charges. Work on the Business Plan is ongoing. The funds in 2017 and 2018 will be utilized to fund the consultation, preparation and printing of the plan for

195 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 172

196 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 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 - $1,066,720 Fairhaven continues to face numerous budgetary pressures in 2017, which has led the Committee of Management to submit a municipal funding request in the amount of $1,599,869, with the City s portion of the ask being $1,066,720 ( $626,700) and the County s at $533,149 (2016 $313,300) a $659,869 or 70.2% increase over Within the 2% Operating component of the Guideline provided by Council, the Draft Budget only accommodated an amount of $846,579 representing 50% of the additional ask, an increase of $219,909 or 35.1%. During Budget deliberations, Council approved the full amount of the request and funded the difference from the General Contingency provision. Fairhaven Capital Funding - $200,000 As part of report CPFS dated September 4, 2012, Council resolved that beginning with the 2013 Capital Budget, an annual provision would be included in the Draft Capital Budget to support Fairhaven s on-going capital program. The provision for 2017 is $200,

197 Peterborough County/City Paramedics Service (PCCP) The County of Peterborough is the delivery agent for both the City and the County. PCCP provides care, treatment, and transportation to the residents and visitors of Peterborough county, city, and surrounding areas. The fundamental mission of the Peterborough County/City Paramedics 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. The City s portion of the PCCP expenses for 2017 has been budgeted at $4.66 million or a 1.7% increase over the 2016 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 2017 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 2017 Peterborough County/City Paramedics Services Budget be netted against the 2017 General Contingency Provision. 174

198 That any unused Peterborough County/City Paramedics Services (PCCP) Budget at the end of 2017 be transferred to the PCCP Reserve, subject to the overall yearend position, and that, if the actual 2017 PCCP costs exceed the 2017 Budget, funds may be drawn from the PCCP Reserve. 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 2017 Budget. It is anticipated that the Base Levy will increase in the range of 2%-3%. The estimate of the $737,813 amount is made up of the following items: Base levy - $700,865 Source Water Protection - $18,500 City s portion of Special Capital Levy Millbrook Dam - $18,448 Recommendation That any adjustments to the City s portion of ORCA s 2017 Budget, based on the final approved ORCA Budget, be netted against the City s 2017 general contingency provision. 175

199 Peterborough Public Health Operating Budget Peterborough Public Health (PPH) serves residents throughout the City and County of Peterborough and offers a wide range of programs and services ranging from healthy eating workshops, poverty reduction initiatives, and oral health clinics to controlling infectious disease outbreaks, water safety and sexual health clinic services. The Ministry of Health (MOH) funds 75% of the budget. The local share, after deducting the 75% MOH contribution, is allocated to the City, County, Curve Lake First Nation and Hiawatha First Nation based on population. The City s 2017 budgeted contribution is $1,205,956, the same as The budget is an estimate only, as the PPH board has not yet approved a 2017 budget. Recommendation That any adjustments to the City s portion of Peterborough Public Health s 2017 Budget, based on the final approved Peterborough Public Health Budget, be netted against the City s 2017 general contingency provision. 176

200 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. For the term of the current agreement dated December 7, 2015 (Report CAO15-024), the City and the County have agreed to provide funding to GPAEDC to undertake Core Economic Development activities, that are at least equal to the approved 2016 budget and subject to annual National Consumer Price Index for the previous year. For purposes of the 2017 Budget, CPI is assumed to be 2%. 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 2017 budget for PED funding support has been set at $949,364 or 2.0% higher than the 2016 budgeted base level of $930,749. Through Report CPFSJSSC16-001dated October 13, 2016, the Joint Services Steering Committee endorsed the draft 2017 GPAEDC Budget and recommended it to City and County Council for consideration during their respective 2017 Budget discussions. 177

201 Peterborough Humane Society Through Report OCS dated July 28, 2014, 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-law and provincial legislation. In addition PHS operates the City's Pound and issues dog and cat licenses. In addition to providing services to the City, the PHS is an affiliate member of the Ontario Society for the Prevention of Cruelty of Animals ( OSPCA ), mandated to prevent cruelty to animals, including domestic, livestock/farm, working animals, zoos and wildlife. The operative legislation is the Ontario Society for the Prevention of Cruelty of Animals, the PHS advocates responsible pet ownership through education, in addition to operating a shelter and fundraising activities. This role is separate and apart from that of the PHS s contractual arrangements with the City but it allows the City to benefit from the expertise and training of the OSPCA officers who enforce our by-laws and the highest standards of animal care that are set out in the OSPCA Act. The City pays an all inclusive price for the services and the property taxes at the PHS s facility and PHS retains Pound fees; destruction and disposal fees; dog and cat license fees and 50% of fine revenue collected. 178

202 Based on Report OCS16-002, dated May 30, 2016, the Draft 2017 Budget includes $0.3 million (Budget reference ) as the City s first year commitment to the relocation project with a total of $1.5 million towards the construction costs in total over the five year period 2017 to Peterborough Family Health Team Peterborough Family Health Team (previously Primary Health Care Services of Peterborough) is a non-profit organization that was created in 2005 to with a mission to increase access to primary care through recruitment and retention of new health providers and to meet community health needs. There are now over 80 physicians and over 50 allied health professionals (nurse practitioners, mental health clinicians, registered dietitians, pharmacists, occupational therapists and registered nurses) in the Family Health Team. Annual net costs are 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% of the Doctor Recruitment Program, or $20,

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. Through Report COU dated September 26, 2016, the Mayor has asked for a review of the by-laws and provincial legislation surrounding the creation and operation of Business Improvement Areas with the goal of developing local policies to guide existing and new Business Improvement Areas for the benefit of their members and the overall community. The specific recommendations of the report read as follows: a) That staff provide a report with recommendations on updating bylaws and policies to govern the role of Business Improvement Areas as local boards of the municipality dedicated to the beautification and promotion of their respective business districts; b) That staff review all aspects, including the geographic territory, of the Downtown Business Improvement Area. c) That staff report back to City Council by the end of the first quarter of

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. This budget was approved by the Board at their meeting held on August 24, 2016 and ratified by members at their Annual General Meeting on October 26, Budget Levy $298,685 $304,700 The DBIA has requested the following note to accompany their Budget. The 2017 Budget for the Downtown Business Improvement Areas, does not reflect three separate capital savings accounts in the amount of $10,000 each for the following: The Urban Park, WiFi Maintenance and Expansion, and Decorative Lighting. These accounts total $30,000. Recommendation That the 2017 Budget request, representing the levy required by the Downtown Business Improvement Area of the Corporation of the City of Peterborough during the year 2017 totalling $304,700, be approved. City Contributions to the DBIA In addition to collecting the levy from members of the DBIA, the City s 2017 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 71 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. 181

205 The Village Business Improvement Area (VBIA) The VBIA has submitted a budget for 2017 in the amount of $16,380 as follows. Recommendation Budget Operating $11,380 $11,380 Capital $5,000 $5,000 Total $16,380 $16,380 That the 2017 budget request, representing all sums required by The Village Business Improvement Area of the Corporation of the City of Peterborough during the year 2017 totalling $16,380, be approved. 182

206 Corporate Revenues Summary 183

207 Investment Revenue The 2017 Budget is $2.1 million, a $200,000 increase over 2016 and is based on average investment balances of $120.0 million and an average investment return of 1.75%. Payments in Lieu The 2017 payment in lieu estimates of $3.3 million reflect an overall 2.7% increase over 2016 levels and is mostly the result of realigning budgets to reflect previous year actual amounts received. Utilities Group of Companies Revenues The $5.55 million represents the dividend payments expected from the Peterborough Utilities Group of Companies. It is expected that the overall return on investment will continue to increase approximately 2% per annum. Although the 2017 dividend revenues from CoPHI, are assumed to be $5.55 million, the potential divestment of PDI would have a substantial financial implication should a transaction occur, including future expected dividend revenues. That matter will be the subject of a future report Surplus Carried Forward as 2017 Revenue The 2017 Budget has been prepared assuming a surplus from 2016 operations of $100,000. Recommendation That any net surplus funds, after the disposition of the recommendations in this report, from 2017 operations in excess of $100,000 be transferred to the Capital Levy Reserve to be used for Capital works. 184

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. $15.5 million Sewer Surcharge to be raised The 95% Sewer Surcharge Rate, coupled with increased water rates and some growth, means the City will raise $15.5 million in sewer surcharge revenues in 2017 ($16.0 in 2016). The amount of sewer surcharge that can be transferred into the Waste Water Reserve Fund to finance Capital works will be $5.7 million. Average Sewer Surcharge payable increases by $9.54 (2.2%) When the estimated 2.2% water rate increase for 2017 is considered with the 95% sewer surcharge rate, the average house will experience a $9.54 increase in their sewer surcharge annual amount payable over the 2016 level. The rates and levies are summarized in the following Chart. Comparative Sewer Surcharge Rates and Levies For the years 2016 and

209 Sewer Surcharge Funded Operating Expenditures 186

210 Other Fees and Service Charges Summary User fees shown here are reflected throughout Departmental Budgets and reduce net tax levy requirements. 187

211 188

212 189

213 Part Property Taxation Budget Highlights Part 3: 2017 Property Taxation 190

214 Part Property Taxation Taxation Revenue Summary The amount of taxation revenue, included in the 2017 Budget, to fund the net expenditures from all City activities, less corporate revenues, is $123.2 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 $235,

215 Part Property Taxation What a Residential Tax Payer Pays 192

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 2015 and 2016 Budgets deferred the plan, as directed by Council through the respecitve Budget Guidelines Reports. On June 27, 2016, Council approved Report CPFS (2017 Budget Guidelines) which included the following recommendation: That the revised Tax Ratio Reduction Program continues for the 2017 Draft Budget and reflects reductions: i) To the Commercial and Industrial Class Tax Ratios but not the Multi-residential Class, and ii) at the reduced rate established through the 2016 Budget process The rate is one-half of the annual reduction that was originally included in the program. City is required to pass a 2017 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 2017 tax ratios for each property class as set out in the 2017 Operating Budget. Farmland Awaiting Development Section 313 of the Municipal Act, 2001 requires municipalities to establish a percentage reduction for farmland awaiting development. The minimum reduction is 25% of the residential rate. While there are presently no properties in the City of Peterborough in this category, a higher percentage reduction has been gradually phased in for several years. In 2015, the reduction percentage reached the maximum 75%. Staff recommend that the percentage remain unchanged for

217 Part Property Taxation Recommendation That the 2017 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 2017 for the Multi-residential, Commercial and Industrial classes be as follows: i. Capping be based on a maximum increase of 10% of the previous year s CVA (Current Value Assessment) tax for the eligible property. ii. iii. iv. No capping credit be applied for properties where the required billing adjustment is within $500 of the properties CVA tax; affected properties would be billed at their full CVA tax level. That properties that achieved CVA tax in 2016 remain at CVA tax from 2017 forward regardless of how reassessment affects the property. That properties that cross over from the clawback to the capping category or vice versa from 2016 to 2017 be taxed at CVA tax. v. That properties within the Industrial tax class are no longer eligible for the capping program. vi. vii. viii. That properties within the Commercial and Multi-Residential tax classes move towards CVA Tax over a four year phase-out period which commenced in 2016 and will achieve full CVA by That the threshold on the tax level for eligible new construction be 100%. That the tax ratio reductions for mandated subclasses of vacant units remain at 30% for the Commercial class and 35% for the Industrial class. 194

218 Part Property Taxation Taxable Assessment To establish a property s assessed value, MPAC analyzes property sales throughout the City. This method is called Current Value Assessment (CVA). In addition to sales, they look at the key features of each property. Five major factors usually account for 85% of the value: location; lot dimensions; living area; age of the property, adjusted for any major renovations or additions; and quality of construction. Other features that may affect value include: number of bathrooms, fireplaces, garages, pools, whether properties have water frontage, and so on. Re-assessment Four Year Cycle Continues As part of the 2007 Ontario Budget, the Liberal government announced plans to improve the property tax system to make it fair, predictable and sustainable. These plans included a four-year reassessment cycle. Initially, all properties in Ontario were reassessed, as of January 1, 2005, for the 2006 taxation year. Reassessments were planned to take place annually thereafter. However, in 2006, when the Ontario Ombudsman reviewed the Municipal Property Assessment Corporation (MPAC), he made a number of recommendations. To give MPAC sufficient time to review and implement the recommendations, the Province declared a two-year freeze on reassessments for the 2007 and 2008 property tax calculations. The freeze was over effective for the 2009 tax year. A reassessment took effect for the year 2009 based on market value as of January 1, 2008 which was phased-in over a 4 year period ending in the 2012 tax year. The next four year phase-in period was 2013 to The current assessment for 2017 is based on the market values at January 1, 2016 and this 4 year phase-in will end in This phase-in program is administered by MPAC as it provides the applicable phased-in assessed values to municipalities each year in the assessment rolls. This phase-in program applies to all property classes and all properties within each class that have experienced an assessment increase. All increases are subject to the phase-in regardless of the amount. By the 2020 taxation year, all properties will be paying taxes on their full destination assessment, that being the January 1, 2016 value. 195

219 Part Property Taxation An example helps illustrate. A residential property, where the January 1, 2016 value was $200,000 and the January 1, 2020 destination value has increased to $240,000, experienced an overall value increase of $40,000, or 20%. Under the phase-in program, the final destination value of $240,000 is not attained until year four. The following chart shows the affect of this sample assessment phase-in. Sample Phase-in for a Property where the Assessment is increasing from $200,000 to $240,000 Taxation Year Valuation Date Jan 1, 2012 Jan 1, 2016 Jan 1, 2016 Jan 1, 2016 Jan 1, 2016 Jan 1, 2020 CVA $200,000 $240,000 $240,000 $240,000 $240, Phase-In -- 25% 50% 75% 100% -- CVA for Taxation $200,000 $210,000 $220,000 $230,000 $240, Properties that experience a decrease in value between the two-reassessment years have received their full decrease in 2017 that carries forward through to, and including, Taxable assessment for 2017 estimated 2.6% increase The 2017 Budget is based on the phased-in property assessments as of January 1, 2016 updated for actual growth, and assessment adjustments. Taxable assessment for 2017 is estimated to increase by 3.4% over the 2016 budget level. The 3.4% figure is comprised of a 2.7% increase resulting from the 2017 phase-in of the January 1, 2016 reassessment and a.70% adjustment for real growth. Median residential assessment for budget purposes estimated 3.16% increase For the 2017 Draft Budget, it is assumed that the median residential assessment for a single family dwelling (not on water) will increase relative to the estimated 2017 phasein assessment values to a value of $235,200. This equates to a 3.16% increase over the $228,000 median value used in the 2016 budget. The following chart reflects the 2017 taxable assessment by class and subclass and the 2016 budgeted amounts. 196

220 Part Property Taxation Taxable CVA by Class and Sub-class Real growth equates to $.9 million tax levy The real growth in taxable assessment times the 2017 municipal tax rates generates $932,100 tax levy dollars. 197

221 Part Property Taxation CVA growth The chart below shows the total taxable assessment changes for the years 2006 through to The following chart shows the relative breakdown of the total $8.6 billion 2017 taxable assessment by type. 198

222 Part Property Taxation Tax Ratios and Tax Rates Tax ratios are applied to current value assessment to determine weighted value assessment that is, in turn, used to calculate municipal tax rates. Tax ratios have a direct bearing on the tax rate calculations and ultimately determine the relationship that industrial, commercial, and multi-residential municipal tax rates have to the residential tax rate. The 2017 Draft Budget reflects the tax ratios shown below. 199

223 Part Property Taxation Tax Ratios

224 Part Property Taxation 2017 Tax Ratio Reduction Plan Continuing 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 3.00% All-inclusive residential tax and sewer levy increase proposed in the 2017 Draft Budget by 0.25%. In other words, if the 2017 tax ratios reduction program reductions were not applied, the All-inclusive residential tax and sewer levy increase would be 2.75% as opposed to 3.00%. Tax Rate Impact of Tax Ratio Change The following chart shows the 2017 tax rates as presented in the 2017 Draft Budget compared to what the 2017 rates would be if the modified eight-year Tax Ratio Reduction Plan was not reinstated. 201

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

226 Part Property Taxation The 2017 Weighted Taxable Assessment by class is shown in the chart below. 203

227 Part Property Taxation Municipal Tax Rate Calculation The 2017 Residential Municipal Tax Rate is calculated by dividing the total net tax levy requirements for the year ($123.2 million) by the total Taxable Weighted Assessment ($9.8 billion). The residential tax rate is then multiplied by each of the other classes applicable tax ratios to determine the tax rates for the other classes. For example, the % Residential tax rate for 2017 is calculated as follows: A Total 2017 net tax levy = $123,156,926 B Total Weighted Taxable Assessment = $9,802,151,382 C Residential tax rate = % ($123,156,926 / $9,802,151,382) X 100 The tax rates for the other classes are then calculated by multiplying the residential tax rate by the tax ratio for the class and subclass. As an example, the % Multi- Residential tax rate for 2017 is calculated by multiplying the % Residential tax rate times the Multi-residential tax ratio. 204

228 Part Property Taxation The resulting 2016 and 2017 tax rates for each class are shown in following table Municipal Tax Rates Municipal Tax Levy by Class The combination of CVA, tax ratios, weighted assessment, and tax rates results in municipal taxes levied by class as depicted in the following chart. 205

229 Part Property Taxation Education Tax Rates Residential, Multi-residential and Farm Since 1998, a uniform education tax rate has been established by the Province to be levied against Residential, Multi-residential and Farm property, regardless of its location in Ontario. In reassessment years, the Province has adjusted the uniform residential/farm education rate to achieve a province-wide revenue neutral tax yield from these classes. Each municipality is affected differently depending on how market values in their area have increased or decreased relative to province-wide market change averages. While Council is not involved in the decision, the 2017 education rates do impact the total tax on assessment City taxpayers will pay in The 3.0% increase in the allinclusive tax and sewer levy, reflected in the 2017 Draft Budget, is impacted by the education rate. For the 2017 Draft Budget, it has been assumed that there will be a 3.80% decrease in the residential education tax rates established for 2017, from % to %. Business Education Property Tax Rates When the Province first assumed responsibility for establishing education tax rates in 1998, each municipality had different Business Education Tax (BET) Rates depending on their 1997 education tax levels that had been set by the individual school boards. As a result, there are a wide range of BET rates throughout the province. 206

230 Part Property Taxation Business representatives across the province criticized high BET rates as being unfair and being a barrier to economic competitiveness stating they put many regions of the province at a disadvantage compared to others. In the 2007 Ontario budget, the Province announced a plan to reduce the BET rates each year to achieve a target rate in The original target rate (applied in 2007 and 2008) was 1.60%, the target in 2014 was 1.22%. The target rate has been moved down over time to offset average assessment appreciation. The BET reduction program did in fact reduce rates from , however the 2012 budget froze the ceiling rates, which are being adjusted on a revenue neutral basis only. Estimated 2017 Business Education Rates The City s 2017 BET rates will not be announced by the Province until early For purposes of the 2017 Draft Budget, the Business Education rates have been assumed to remain at 2016 rates. The following table shows the 2016 and 2017 Municipal and Education Tax Rates including all of the above assumptions and 2017 Municipal and Education Tax Rates Note 1: 2017 Education Rates are estimates only. Actual rates will not be known until published by the Province. 207

231 Part Other Sections Budget Highlights Part 4: Other Sections 208

232 Part Other Sections Staffing New Proposed Positions in 2017 Budget There are 17.0 full-time positions and 2.00 Temporary full-time positions requested in the 2017 Draft Budget full-time position has been eliminated. This results in a net increase of 17.0 as set out in the following chart. 209

233 Part Other Sections Total Staff Complement The total staff complement includes the full-time equivalents (FTE) and part-time FTEs. The following chart shows the split by employee group and the gross expenditure totals. 210

234 Part Other Sections Staffing Complement and Dollars Total staff complement is 1,053.6 FTE - $77.6 million The 2017 Budget reflects a complement of full-time equivalents and parttime equivalents. The dollar value of direct compensation related to the complement is $71.1 million for full-time and $6.5 million for part-time positions for a total straight salary cost amounting to $77.6 million. This represents a $2.9 million (3.88%) increase over the 2016 levels. The increase covers 2017 requested positions, regular grid steps, the annualized impact of any 2016 hires and a provision for salary and wage settlements. Benefit costs to increase by $0.7 million to $21.1 million Benefit costs are expected to be $21.1 million in 2017 and are up by $0.7 million over the $20.4 million for Benefit costs include a number of legislated benefits such as Canada Pension Plan Premiums, Employment Insurance Premiums, and OMERS Premiums plus a number of negotiated benefits such as extended health, life insurance, and dental coverage. Benefit costs are charged out to departments by applying a benefit overhead rate on labour which has remained unchanged from 2016 at 29% for full time labour and 10% for part time labour. The following chart shows the OMERS contribution rates for the past five years. 211

235 Part Other Sections Total compensation to be $98.7 million in up $3.6 million or 3.80% When the 29% benefit rate in effect for 2017 for full-time salaries, and the 10% benefit rate for part-time salaries are added, the total gross compensation for 2017 is $98.7 million. The $98.7 million represents 38.4% of the City s total $256.9 million gross expenditures and is a $3.6 million (3.80%) increase over the $95.1 million total compensation reflected in the 2016 estimates. 212

236 Part Other Sections 213

237 Part Other Sections Impact of Requested New Full-Time Permanent Positions The following chart lists the full-time permanent position that is proposed to be added in the 2017 Draft Budget. For the position, Columns 8 through 18 show salaries and benefits, offsetting revenues, if any, and the net tax levy impact. The net tax levy impact for full-time permanent positions is $.789 million. 214

238 Part Other Sections New Full-time Permanent Positions Proposed in the Operating Budget (17.00 FTE) Fire Prevention Officer: This position will help play a critical role in helping address the identified risks in the City, including rooming boarding and lodging, vulnerable occupancies (care and treatment facilities) and illegal properties. Directives issued by the Fire Marshal has required Fire Services to transition from writing reports to owners of properties with fire code deficiencies to issuing Inspection Orders. Orders are issued under the authority of Section 21 of the Fire Protection and Prevention Act. This is the only method that is supported by the Office of the Fire Marshal and Emergency Management. Inspection Orders ensures the legal transfer of liability from the City to the property owner. This process is labour intensive. Each Inspection Order also requires a follow-up inspection to ensure the City is not held liable for noncompliance after time frames identified in the Order have expired. Public Works Operators: Four new FTEs are necessary to maintain the level of service provided due to expansion from development. This includes 1 FTE for solid waste, 1 FTE for winter roads, 1 FTE for winter sidewalks, 0.5 FTE for sidewalk repair and 0.5 FTE for maintenance and grass cutting. Early Childhood Educators: Pearson Child Care will relocate to a new facility at PCVS in 2017, resulting in an increase of licensed spaces from 26 to 39, as approved by the CAO in March To meet legislated staff to child ratios, two additional full time staff are required for the increased spaces, and an additional 0.57 part-time FTE to meet new regulations for staff:child during rest times. Handi-Van Operators: Approved in report USTR on October 3, 2016, the additional staffing will increase the level of service provided to Handi-Van users, introduce the new community bus service, provide for four Handi-Van Operators and provide parttime reservation services for trip bookings. Police Services The Police Services Board has approved the hiring of four FTEs for 2017, two Special Constables to meet the statutory requirements under the Ontario Police Services Act to provide adequate security in court facilities within the municipality, one Clerk to meet the demand associated with increased policing responsibilities and volume of work and 215

239 Part Other Sections one Crime Analyst to meet the statutory requirements under the Ontario Police Services Act. The civilian Crime Analyst position replaces the Crime Analyst position held by a uniform member since retired. Wastewater Operator, Class 4 Council at its meeting of December 12, 2016 approved Report USDIR authorizing the City to enter into a fiveyear agreement from January 1, 2017 to December 31, 2021 with the Township of Cavan Monaghan for the operation, maintenance and management of the Millbrook Wastewater Facilities. This position is required to enable the City to carry out the requirements of the agreement and will be funded directly from the revenues associated with this agreement Lab Technologist Council at its meeting of December 12, 2016 approved Report USDIR authorizing the City to enter into a fiveyear agreement from January 1, 2017 to December 31, 2021 with the Township of Cavan Monaghan for the operation, maintenance and management of the Millbrook Wastewater Facilities. This position will assist the City in carrying out the requirements of the agreement as well as assist in dealing with increased potable water sampling and analysis. Impact of Elimination of Existing Permanent Full-Time Position The following chart lists the permanent full-time position proposed to be eliminated in the 2017 budget. The net tax levy impact is ($252,200). 216

240 Part Other Sections Conversion of 2017 Draft Operating Budget to Full Accrual PSAB Compliant Budget 217

241 Part Other Sections Requests Not Included In the 2017 Draft Budget Requests not included in the 2017 Draft Budget have been sorted by those items that are personnel related, and all others. 218

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244 Part Other Sections 2017 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 2017 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 ($10.6 million) and tax supported debt charges ($9.5 million) from the previous year. Line 3 Increased Capital Financing 1.0% of All-Inclusive Tax Increase As part of the 2017 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 2017 Operating Budget reflect an additional 1.0% Allinclusive (Municipal, Education and Sewer Surcharge) increase to fund the 2017 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,

245 Part Other Sections The full 1.0% increase in the amount of $1,550,807 has been applied towards increasing tax supported debt payments. Line 4 Flood Reduction Master Plan Capital Levy ($1,212,500) In 2016, $2.1 million of the $2.5 million capital levy traditionally set aside for Flood Reduction Master Plan projects was utilized for other Capital projects. Sufficient, previously approved monies were available to ensure flood reduction capital works continued. In 2017, $1,212,500 has been added to the $400,000 from 2016 to provide for the $1,612,500 Flood Reduction Master Plan Capital Levy being requested. Line 5 Incremental Utilities Dividend - $109,688 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 $109,688 to be received from the Utilities Group of Companies in 2017 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. 222

246 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 progressing towards completion 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 (

247 Part Other Sections 2023) exceed the base amount of $38,219,096 ( average). The average actual capital spending over the life of the agreement is currently $50,574,338, 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 2017, staff have estimated an allocation of $4.8 million and, when combined with some residual unallocated FGT funds and bank interest, provides $5.2 million in funding for the 2017 Draft Capital Budget. This allocation will assist in funding the following Capital projects: 2017 Capital projects to be funded from Federal Gas Tax Reserve Fund (000 s) 224

248 Part Other Sections Development Charges Reserve Funds ($2.4 Million) Development Charges are levied in accordance with various Development Charge bylaws that were approved in July 2012 and September 2014, all of which establish various Development Charge rates. The 2017 Capital program assumes $2.4 million will be drawn from various Development Charge (DC) Reserve Funds to fund growth related Capital projects to be undertaken during 2017 and $3.4 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 2016 rates are set out on Schedule 1 on Page 226. The rates will be indexed as of January 1, 2017; however, the indexing percentage was not known as of the draft Budget book print date. DC commitments as of December 31, 2015 exceed current balances by $10.4 million The 2015 Development Charges Continuity Schedules 2 and 2A, shown on Pages 227 and 228, detail the activity for The $8.2 million balance as of December 31, 2015 and outstanding budgeted commitments of $18.6 million leave a shortfall of $10.4 million in the fund. In addition to the $10.4 million, there is $22.0 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. 225

249 Part Other Sections Development Charge Rates 226

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

251 Part Other Sections 228

252 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. 229

253 Part Other Sections Debt Issued and Outstanding - December 31, 2016 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. 230

254 Part Other Sections Historical Debt Outstanding 2006 to 2016 The level of debt issued and outstanding is tracked on the following graph. 231

255 Part Other Sections Debt Approved but not Issued November 30, 2016 In addition to debt issued and outstanding, $44.9 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. 232

256 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 $150.8 million. The graph indicates how the debt servicing costs are being paid for: The next graph takes the same $150.8 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. 233

257 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 $191.7 million and is based on the 2014 Financial Information Return as reported to the Province. For 2016, the Province has calculated the City s annual debt repayment limit at $47.9 million. Of this amount, the City is using $13.7 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 $34.2 million. According to provincial legislation, the City is using 28.6% of the 25% ($13.7 million /$47.9 million = 28.6%) of its debt capacity, or 7.15% ($13.7 million /$191.7 million = 7.15%). 234

258 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. 235

259 Part Other Sections Remaining Debt Capacity at December 31, 2016 Based on the capital financing policy, the debt capacity available at December 31, 2016 is $30.3 million of tax-supported (TS) debt, and $46.3 million of non taxsupported (Non TS) debt for a total of $76.6 million. To derive at these amounts, assumptions are made with respect to the term (TS = 10 years, Non TS = 20 years) of the debt and the expected interest rates available in the market place. 236

260 Part Other Sections Remaining Debt Capacity at December 31, 2017 Assuming the draft 2017 Capital Budget is approved as is, and the 2017 payments of debt principal are paid as per the normal course of business throughout the year, the TS debt capacity available at December 31, 2017 becomes $6.5 million and the Non TS debt capacity available becomes $36.1 million for a total of $42.6 million as shown on the following graph. The decrease in capacity from 2016 is a factor of the reliance upon debt in 2017 Draft Capital Budget ($21.6 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. 237

261 Part Other Sections Reserves and Reserve Funds Reserve and Reserve Fund Balances ($118.6 million at October 2016) 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, 2016 and amount to $118.6 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 2017 budgeted transfers to Reserves and planned 2017 expenditures from Reserves. 238

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