RECOMMENDATIONS. Property tax supported net multi-year budget. Operating Budget Amendments (Recommended Permanent)

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1 RECOMMENDATIONS ALL AMOUNTS REPORTED IN THOUSANDS ($000 S) Property tax supported net multi-year budget Operating Budget Amendments 1. That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following permanent expenditure and revenue changes to the operating budget BE APPROVED; it being noted that the average annual tax levy increase would remain at 2.8%. Operating Budget Amendments (Recommended Permanent) Case # Description Budget Category Energy Prices New Cap and Trade Program Expenditure Inc/(Dec) Provincial regulation beginning on January 1, 2017 related to Revenue (Inc)/Dec (800) (800) (700) the implementation of a greenhouse gas emissions Cap and Net Trade Program will result in higher energy costs. Gross expenditures in are budgeted at $800 thousand, $800 thousand, and $900 thousand respectively, with a strategic use of the Operating Budget Contingency Reserve to phase-in the net impact to the tax levy. Carrying/Holding Costs On City Owned Properties Expenditure Inc/(Dec) An increased contribution to the Land Acquisition Reserve Revenue (Inc)/Dec (100) (100) - Fund is being recommended to be used as a funding source for Net the operational needs of strategically purchased buildings by the City, it being noted that the reserve fund by-law will need to be changed to allow for the funds to be used for this purpose. Gross expenditures of $400 thousand per year beginning in 2017 are required and have been partially offset with a strategic use of the Operating Budget Contingency Reserve to phase-in the net impact to the tax levy. Page 1

2 Operating Budget Amendments (Recommended Permanent) Case # Description Budget Category Updated Debt Servicing Budget Expenditure Inc/(Dec) (300) (300) (300) An annual budget reduction to debt servicing expenditures of Revenue (Inc)/Dec $300 thousand beginning in 2017 primarily due to lower Net (300) (300) (300) interest rates attributed to issued debt in 2016 and future forecasted debt issuances. Total Net Budget Amendments Incremental Net Increase / (Decrease) That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following permanent expenditure and revenue changes to the operating budget BE CONSIDERED; it being noted that the average annual tax levy increase would rise from 2.8% to 2.9%. Operating Budget Amendments (For Consideration Permanent) Case # Description Budget Category UTRCA Environmental Targets Strategic Plan Expenditure Inc/(Dec) An operating budget increase to support the Environmental Revenue (Inc)/Dec Targets Strategic Plan recently approved by the Upper Net Thames River Conservation Authority Board. LMHC Building Maintenance and Tenant Services Expenditure Inc/(Dec) The London & Middlesex Housing Corporation has submitted Revenue (Inc)/Dec an operating budget increase resulting from an increased Net demand for emergency building repairs including electrical repairs, pest control, plumbing repairs and general maintenance. Total Net Budget Amendments Incremental Net Increase / (Decrease) Page 2

3 3. That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following one-time expenditure and revenue changes to the operating budget BE CONSIDERED; it being noted that these changes have no tax levy impact. Operating Budget Amendments (For Consideration One Time) Case # Description Budget Category Community Economic Roadmap Implementation Expenditure Inc/(Dec) A gross expenditure request of $150 thousand per year from Revenue (Inc)/Dec (150) (150) (150) to assist with the implementation of London s Net Community Economic Road Map consistent with Council s Strategic Plan. The recommended source of financing for this one-time initiative is the Economic Development Reserve Fund resulting in no impact to the tax levy. HDC Additional Investment In Affordable Housing Expenditure Inc/(Dec) 2, Development Revenue (Inc)/Dec (2,000) - - A one-time additional investment in affordable housing Net development in 2017 of $2 million is being requested by the Housing Development Corporation. The recommended source of funding for this budget amendment is 2016 surplus, if available. Total Net Budget Amendments Incremental Net Increase / (Decrease) Page 3

4 Capital Budget Amendments 4. a) That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following capital budget changes for , representing a $4.6 million decrease in the capital budget, BE APPROVED; it being noted that these changes have no tax levy impact. Capital Budget Amendments Lifecycle Renewal Case # 8 9 Description Public Art Restoration Rationale: New project for lifecycle maintenance on public art. Source of Financing: Public Art Maintenance Reserve Fund Municipal Waste Study Rationale: Increase in funding for an individual Environmental Assessment to develop long term solid waste resource recovery and disposal plans. Source of Financing: Sanitary Landfill Reserve Fund Total , , Vehicle & Equipment Replacement Rationale: Increase funding for vehicle and equipment replacement due to cost and program adjustments ,030 Source of Financing: Vehicle & Equipment Reserve Fund Other Lifecycle Renewal Amendments ( ) - Library Capital Plan (e.g. Facility Renewal) (419) (68) 11 - Covent Garden Roof Replacement Source of Financing: Library Facilities & Equipment Reserve Fund, Covent Garden Market Reserve (350) (350) Note: Capital budget amendments reflect requested investment (i.e. excludes sources of financing) Page 4

5 Capital Budget Amendments Growth Case # Description Total Northwest and Southeast Libraries Rationale: Defer Northwest from 2019 to (3,330) (3,330) 14 Defer Southeast from 2018 to (3,330) 3,330 - Increase funding to Southeast Library to reflect recent higher tender results for facility projects. 1,038 1, Multi-purpose Recreation Centre Southeast Rationale: Increase funding to reflect recent higher tender results for facility projects. Transportation Rationale: Revise select Transportation Growth projects - Total 11,167 (14,057) (588) (3,478) Advance Projects: TS1489 Western Rd Widening - Platts Lane to Oxford 11,600 (11,600) - TS1134 Richmond St & Fanshawe Park Rd Intersection Improvements 2,000 (2,000) - TS Veterans Memorial Parkway - Ph 1 - Huron to Clarke 1,000 (1,000) - TS1408 Wickerson Rd Upgrades - Ironwood to Southdale 200 (200) - 16 TS Southdale Rd Upgrade Phase 1 - Wickerson to Bramblewood 300 (300) - TS Sunningdale Rd Widening - Ph 2 Intersection Upgrades 138 (138) - Defer Projects: - TS1406 Sunningdale Rd Updgrade - South Wenige to Highbury (3,083) (3,083) TS1633 Veterans Memorial Parkway - Advanced Land Acquisition (800) 800 (600) (600) Revise Funding: - TS Southdale Rd Widening - Farnham to Pine Valley TS1358 Pack Rd Upgrades- Colonel Talbot to Bostwick TS1041 Transportation Impact Study (50) (50) (50) (150) 17 Other Growth Amendments ( ) - New Fire Station #15 (deferred from 2018/2019 to 2020) (1,065) (1,863) (2,928) Note: Capital budget amendments reflect requested investment (i.e. excludes sources of financing) 2019 Page 5

6 Capital Budget Amendments Service Improvement Case # Description Total Carrying/Holding Costs on City Owned Properties Rationale: Repairs to buildings on Old Victoria Hospital site (War Memorial and Old Medical School) after assumption from LHSC. Source of Financing: Land Acquisition Reserve Fund 1,000 1,000 Revision to Capital Project for Ontario Works Desk-Side Service Delivery Model Rationale: Funding for conversion to deskside service for Core and East Ontario Works offices. Source of Financing: Social Services Reserve Fund Facility Energy Management Rationale: Increase funding for energy savings projects ,000 Source of Financing: Energy Management Reserve Fund Other Service Improvement Amendments ( ) - Glen Cairn and Silverwoods Arena Relocate Resources for Fire Station #16 (deferred from 2019 to 2020) (200) (1,535) (1,735) - Western Road & Philip Aziz (deferred from 2017 to 2018) (6,000) 6,000 - Total Amendments Total Revenue Total Tax Levy Impact Note: Capital budget amendments reflect requested investment (i.e. excludes sources of financing) 8,126 (11,305) (1,458) (4,637) (8,126) 11,305 1,458 4, Page 6

7 b) That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following forecasted capital budget changes for the period, representing a $19.6 million increase in the capital budget, BE APPROVED in principle (subject to annual review). Capital Budget Amendments Case # Description Lifecycle Renewal 8 Public Art Restoration 1, Vehicle & Equipment Replacement (1,038) 11 Library Capital Plan (820) 11 Covent Garden Roof Replacement Replace Firefighter Equipment (110) 12 Police Equipment 1, Replace Police Vehicles London Transit Highbury Facility Demolition and Rebuild (estimated $45.6 million project, $15 million , $30.6 million beyond) 15,000 Growth 14 Northwest Library (deferred from 2019 to 2020) 4, Transportation Growth Projects ( impact of changes) 1, New Fire Station #15 (deferred from 2019 to 2020) 3, New Spray Pads - increased funding Transportation Growth Projects (advanced/deferred projects) (8,266) Service Improvement 20 Glen Cairn and Farquharson Arenas (1,290) 20 Relocate Resources for Fire Station #16 (deferred from 2019 to 2020) 3,102 Total 19,619 Page 7

8 Other Budget Recommendations 5. That, in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the following actions be taken with respect to the operating budget (Appendix A, page 26): a. The revised 2017 tax levy BE READOPTED in the gross amount of $xx and in the net amount of $xx after recognizing an estimated $xx of increased taxation from assessment growth. b. The revised forecasted tax levy BE READOPTED in the gross amount of $xx and in the net amount of $xx. 6. That, in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the following actions be taken with respect to the capital budget (Appendix C, page 36): a. The revised 2017 capital budget BE READOPTED in the amount of $xx. b. The revised 2018 capital budget BE READOPTED in the amount of $xx. c. The revised 2019 capital budget BE READOPTED in the amount of $xx. d. The revised capital forecast BE APPROVED in principle in the gross amount of $xx (subject to annual review). 7. That the 2017 Corporate Capital Cash Flow (page 40) that identifies the accounting recognition of capital expenditures for 2017, consistent with Public Sector Accounting Board standards, BE APPROVED. 8. That the Reserves and Reserve Fund Overview BE APPROVED; it being noted projections are subject to annual review and adjustment (Appendix D, page 41). 9. That the Civic Administration BE DIRECTED to bring forward any necessary by-laws regarding the operating and capital budgets for introduction at the Municipal Council on December 6, That the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer and the City Clerk BE INSTRUCTED to prepare the 2017 Tax Levy By-law for introduction and enactment by the Municipal Council at the appropriate time. Page 8