APPENDIX B SERVICE PROGRAM OVERVIEW. Page 81

Transcription

1 APPENDIX B SERVICE PROGRAM OVERVIEW Page 81

2 Page 82

3 Operating Overview Culture The City of London s requested Tax Supported Multi Year Budget for Culture is $97.9 million representing 4.4% of the net property tax supported budget. Outlined below is a breakdown of the 6 service groupings that make up the City of London s Culture Program. Culture, 4.4% Centennial Hall, 0.7% Arts, Culture & Heritage Advisory & Funding, 9.2% Museum London, 6.8% Eldon House, 1.1% Heritage, 0.8% London Public Library, 81.4% Page 83

4 Requested Multi Year Budget ($000 s) Average SERVICE 2015 Net 2016 Budget 2017 Budget 2018 Budget 2019 Budget Net Annual Net Budget Increase / Percentage (Decrease) Increase/ Expense Net Expense Net Expense Net Expense Net (Decrease) CULTURE SERVICES Centennial Hall % Arts, Culture & Heritage Advisory & Funding 2,185 2,357 2,207 2,375 2,248 2,254 2,254 2,283 2, % Museum London 1,614 1,638 1,638 1,663 1,663 1,688 1,688 1,713 1, % Eldon House % Heritage % London Public Library 19,128 19,499 19,499 19,783 19,783 20,063 20,063 20,321 20,321 1, % TOTAL CULTURE SERVICES 23,467 24,710 23,938 25,064 24,315 25,280 24,658 25,615 24,993 1, % TOTAL CULTURE SERVICES NET BUDGET 97,904 Subject to rounding. Note: Boards and Commissions are reported as the net expenditure to the City with the exception of the London Police Service which contains gross expenditures and non tax revenue as a result of shared financial reporting systems. Staffing Summary STAFFING Full Time Employee # Centennial Hall Arts, Culture & Heritage Advisory & Funding Museum London Eldon House Heritage London Public Library Total Page 84

5 STAFFING Full Time Equivalents # Centennial Hall Arts, Culture & Heritage Advisory & Funding Museum London Eldon House Heritage London Public Library Total Centennial Hall Operating Highlights Description Of Service Centennial Hall is a City owned multi purpose public venue that showcases a variety of music, arts and cultural performances to the citizens of London and other audiences. It also acts as a venue for dances, banquets, meetings, conventions, exhibitions, trade shows, craft shows, fashion shows and travel shows. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Amazing arts, culture and recreation experiences Prior 3 Years Cost Containment/Revenue Generation Initiatives Due to a combination of utility rates, maintenance, personnel obligations and declining attendance at Trade Shows/Expos, an agreement was made to charge an increased flat rate instead of charging percentages of admissions and chair removals. Page 85

6 Multi Year Base Budget Highlights Centennial Hall has requested a budget with a net increase of $82 thousand, representing an average annual increase of 15.7%. This increase is due to revenues being flat lined at the 2013 actual amounts due to some uncertainty with future bookings and rising utility rates between 6% 7%. Utility rates continue to be a challenge, increasing by approximately $59 thousand in total between 2016 and To help mitigate budgetary pressures Centennial Hall will continue to build relationships with dance groups and concert promoters, while trying to grow wedding events. In July 2015, Council approved a five year contract extension (January 2016 December 2020), with Donald Jones Management Inc. to manage all functions and activities of the facility. The contract also includes a 90 day notice provision to terminate the contract with or without cause. The base operating budget assumes a holding position of this City asset until further analysis and decision making is conducted on the future uses of the building and site. Arts, Culture and Heritage Advisory & Funding Operating Highlights Description Of Service The Culture Office is the central access point for the cultural functions and responsibilities of our City. It is responsible for promoting collaboration, communication and the sharing of knowledge and resources for the culture sector which includes: heritage and museums, art and public art, diversity and inclusion, festivals, libraries, culture district development, and promotion through tourism. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Amazing arts, culture and recreation experiences Growing our Economy o Diverse and resilient economy Building a Sustainable City o Beautiful places and spaces Page 86

7 Prior 3 Years Cost Containment/Revenue Generation Initiatives The Culture Office successfully leveraged federal funding to help pay for the Cenotaph restoration. Established purchase of service agreements for the delivery of cultural programming. Some of these programs funded by the City, such as Culture Days and London Artist in Residence Program, are then able to leverage additional funding for their programs from other sources. Grant funding has remained constant for the past several years Multi Year Base Budget Highlights Arts, Culture and Heritage Advisory & Funding has requested a budget with a net increase of $98 thousand, representing an average annual increase of 1.1%. This increase is primarily due to an increase in public art maintenance to address restoration needs, annual inspections and condition studies for 32 pieces of public art. A significant component of the Arts, Culture and Heritage Advisory & Funding budget is Community Arts Investment Program (CAIP) funding to provide operating financial assistance to not for profit organizations, artist collectives or individuals within the London arts community. This funding is allocated through juried allocation processes administered by the London Arts Council. In addition, a multi year operating agreement to provide funding to the Grand Theatre of $500 thousand will be established in Museum London Operating Highlights Description Of Service Museum London is Southwestern Ontario s leading establishment for the collection and presentation of visual art and material culture. It is a tourism attraction and supports the local economy by supporting local artists and writers through programming as well as touring exhibition programs. Museum London preserves and celebrates regional art, culture and history. Its activities are driven by a mandate to collect, preserve, exhibit and interpret the visual arts and local history which is augmented by publications, symposia, discussion, lectures, films, or other events. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Amazing arts, culture and recreation experiences Page 87

8 Prior 3 Years Cost Containment/Revenue Generation Initiatives Continued to contract non core service functions such as building maintenance, custodial, security, and parking to either external service providers or the City of London. Collaborated with other organizations to provide programs and introduce new opportunities for local artists through the satellite location. Generated additional revenue by leasing Museum space to the City of London and to private businesses with Museum related activities and the leasing space to North Moore catering for restaurant (River Room), bakery and café (Rhino Lounge) services and re opened Gallery Shop and implemented the Art Rental program (Muse) Multi Year Base Budget Highlights Museum London has requested a budget with a net increase of $99 thousand, representing an average annual increase of 1.5%. The primary factors driving the requested multi year budget are cost increases related to personnel in accordance with collective agreements and budget pressures in utilities and insurance. Included in the multi year budget are costs associated with the Centre at the Forks Learning Centre to begin mid way through However, offsetting these costs is funding from an endowment established as a result of the capital campaign for the Centre. A learning centre within the Museum will provide a dynamic creative community hub, doubling the space for educational programming and will be an incubator for artistic innovation, offering imaginative programs using the latest technology. Eldon House Operating Highlights Description Of Service Eldon House is a heritage property dedicated to preserving and promoting the Harris family legacy and the history of London and Canada. It celebrates London s rich heritage and ensures a high quality of life is enjoyed by all, whether long term residents or new Londoner s. It is a place where people from many backgrounds are welcomed. Its strategies preserve and celebrate the city s history and heritage, strengthen and embrace London s diversity and cultural identity, provide programming to support downtown vibrancy, welcome and support newcomers, and encourage volunteerism and community engagement. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Amazing arts, culture and recreation experiences Page 88

9 Prior 3 Years Cost Containment/Revenue Generation Initiatives An analysis is in progress to ensure appropriate revenue is charged, costs are maintained and profit margins are achieved. A minimum suggested donation amount has been posted on the donation boxes in order to encourage larger donations to be given. New programming is continually being developed and implemented. The gift shop has been revamped and is open for business Multi Year Base Budget Highlights Eldon House has requested a budget with a net increase of $26 thousand, representing an average annual increase of 2.4%. Over the multi year budget, Eldon House anticipates cost increases in utilities and professional fees along with revenue reductions in donations and government grants. Partially offsetting these budget pressures is an increase in other revenues which is primarily composed of programming and event revenue, facility rental revenue and gift shop revenue. Service Adjustment results in an increase in expenditures of $18 thousand. Included in the multi year budget is a service adjustment related to increasing the number of hours of a position from 20 hours per week to 30 hours per week reflecting a net budget increase of $18 thousand. The increased hours relate to an expansion of the position to include the management of finances, human resources, gift shop and certain physical plant maintenance issues. The implementation of the increased hours will be a 3 year phase in beginning in 2016 with full implementation by Heritage Operating Highlights Description Of Service The City administers the heritage planning program to conserve the most valuable heritage resources in the City under the Ontario Heritage Act. In addition, the City owns 13 heritage buildings and is the steward of their maintenance and long term conservation. This service provides professional advice to Council and its Heritage Advisory Committee, and serves as a public resource on heritage matters to the owners of more than 6,000 privately owned heritage properties in the City. A municipality s ability to offer quality heritage neighbourhoods in urban environments, such as those in London, provides an advantage over other cities that cannot offer this choice. In this way, heritage adds to London s attraction as a great place to live and invest. Page 89

10 Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening Our Community o Amazing arts, culture and recreation experiences Building a Sustainable City o Heritage conservation o Beautiful places and spaces Growing Our Economy o Urban Regeneration Prior 3 Years Cost Containment/Revenue Generation Initiatives Leased a number of municipally owned heritage buildings to Heritage London Foundation who occupy these buildings, lease them for various activities and events, and utilize the funds to do daily upkeep and maintenance. Prioritized and deferred required life cycle maintenance work on municipally owned heritage buildings. This helped to reduce costs in the short term but may lead to increased overall maintenance costs in the long term as maintenance issues worsen. Have avoided taking on several heritage buildings under municipal ownership, recognizing financial constraints. Staffing levels have remained modest, focusing on immediate priorities and deferring a variety of projects, including the Archaeological Master Plan Multi Year Base Budget Highlights Heritage has requested a budget with a net increase of $28 thousand, representing an average annual increase of 3.9%. The Heritage budget is 100% driven by personnel expenditures that support two full time equivalents. The increase is due to salary and fringe benefit adjustments related to existing employment agreements. London Public Library Operating Highlights Description Of Service The London Public Library (LPL) provides public library service. LPL s purpose is to strengthen people and neighbourhoods by creating connections that enrich lives, inspire discovery, foster creativity, and expand possibilities. The Library nurtures literacy, learning, knowledge for living, personal well being, culture and community building. LPL achieves this by providing high quality relevant services developed using a user first, communitybased approach. Core services include: collections and digital content, information, programming and technology tools. The public accesses library Page 90

11 services at 16 branches, in the community, and via LPL s virtual library. LPL collaborates with the City of London and other partners in community development and provision of programs and services. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Vibrant, connected, and engaged neighbourhoods o Amazing arts, culture and recreation experiences Prior 3 Years Cost Containment/Revenue Generation Initiatives The removal of the escalators at Central Library and the replacement with stairs will result in ongoing cost avoidance (see base budget highlights for details). An external audit completed by PricewaterhouseCoopers in the fall of 2013 identified potential opportunities for revenue growth such as increasing rates for existing tenants, increasing the utilization of meeting space, increasing the fees charged for exam proctoring and from identifying additional Library space for leasing purposes. Shared Services: Provision of payroll services to Museum London and Eldon House resulted in additional revenues for the Library and resource/infrastructure savings for these two other cultural institutions Multi Year Base Budget Highlights The London Public Library has requested a budget with a net increase of $1.2 million, representing an average annual increase of 1.5%. The increase is primarily due to wage, salary and benefit adjustments in accordance with existing employment agreements and increases in minimum wage, utilities, insurance and reduced fine revenue resulting from improved proactive collections methods and the increase in use of electronic resources which have no fine potential. The London Public Library accommodated an increase to collections materials and supplies in order to meet customer demand for digital collections, in addition to traditional formats, and to address rising costs. Partially offsetting these cost pressures are increased rental revenues, as the recommendations from PricewaterhouseCoopers are implemented and the upgrades to the meetings rooms are completed as part of the Central Library Revitalization capital project. The multi year budget also realizes operational savings as a result of the Central Library Revitalization capital project. There will be a decrease in escalator expenses in 2017, due to the replacement of the 25 year old Central Library escalators with stairs however, this is offset by increases on other facility maintenance expenses. The removal of the escalators will realize approximately $135 thousand in cost avoidance over the multi year budget period and more than $600 thousand over the next 10 years. Page 91

12 Capital Overview ($000 s) Culture Revised Proposed Proposed Proposed Proposed Total Forecast Forecast Classification Lifecycle 4,867 1,567 1,577 1,567 1,477 6,188 8,832 15,020 Growth 3,330 3,330 6,660 6,660 Service Improvements 1,250 1,250 2,500 2,500 Total 4,867 2,817 2,827 4,897 4,807 15,348 8,832 24,180 Source of Financing Capital Levy 2,177 1,067 1,077 1,067 1,077 4,288 6,432 10,720 Reserve Funds ,900 2,400 4,300 Debt 2, ,113 3,042 3,042 Other 1,250 1,250 2,401 1,217 6,118 6,118 Total 4,867 2,817 2,827 4,897 4,807 15,348 8,832 24,180 Lifecycle Renewal Growth Service Improvement Page 92

13 Major Capital Works in Ten Year Plan ($000's) Culture Services Lifecycle GG Museum London Repairs 1,380 2,070 TS Centennial Hall Repairs 720 1,080 Total Culture Services Lifecycle 2,100 3,150 Culture Services Service Improvement GG1845 Centre at the Forks within Museum London 2,500 Total Culture Services Service Improvement 2,500 Total Culture Services 4,600 3,150 Heritage Lifecycle PD2154 Heritage Conservation PD Municipally Owned Heritage Buildings 1,888 2,832 Total Heritage Lifecycle 2,188 3,282 Total Heritage 2,188 3,282 Libraries Lifecycle RC3341 Integrated Library System 400 1,200 RC3533 Branch Facilities Maintenance RC3540 Facility Renewal Plan 1, Total Libraries Lifecycle 1,900 2,400 Libraries Growth RC3464 Northwest Branch Library 3,330 RC3466 Southeast Branch Library 3,330 Total Libraries Growth 6,660 Total Libraries 8,560 2,400 TOTAL CULTURE 15,348 8,832 Page 93

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15 Operating Overview Economic Prosperity The City of London s Requested Tax Supported Multi Year Budget for Economic Prosperity is $47.5 million representing 2.2% of the net property tax supported budget. Outlined below is a breakdown of the 5 service groupings that make up the City of London s Economic Prosperity Program. Economic Prosperity, 2.2% Community Improvement/BIA, 2.0% London Convention Centre, 5.0% Tourism London, 16.6% Business Attraction & Retention, 76.4% Note: Covent Garden Market does not receive municipal funding. Page 95

16 Requested Multi Year Budget ($000 s) Average SERVICE 2015 Net 2016 Budget 2017 Budget 2018 Budget 2019 Budget Net Annual Net Budget Increase / Percentage (Decrease) Increase/ Expense Net Expense Net Expense Net Expense Net (Decrease) ECONOMIC PROSPERITY Business Attraction & Retention 10,057 9,060 9,060 9,066 9,066 9,072 9,072 9,078 9,078 (979) (2.4%) Community Improvement / BIA % London Convention Centre % Tourism London 1,896 1,942 1,942 1,964 1,964 1,994 1,994 2,006 2, % Covent Garden Market % TOTAL ECONOMIC PROSPERITY 12,728 11,818 11,818 11,860 11,860 11,903 11,903 11,922 11,922 (806) (1.6%) TOTAL ECONOMIC PROSPERITY NET BUDGET 47,503 Subject to rounding. Note: Boards and Commissions are reported as the net expenditure to the City with the exception of the London Police Service which contains gross expenditures and non tax revenue as a result of shared financial reporting systems. Staffing Summary STAFFING Full Time Employee # Business Attraction & Retention Community Improvement / BIA London Convention Centre Tourism London Covent Garden Market Total Page 96

17 STAFFING Full Time Equivalents # Business Attraction & Retention Community Improvement / BIA London Convention Centre Tourism London Covent Garden Market Total Business Attraction & Retention Operating Highlights Description Of Service Business Attraction and Retention primarily focuses on strategies aimed at growing our economy. London Economic Development Corporation (LEDC) is the lead economic development agency in the city of London. LEDC works to improve the economic well being of Londoners through the attraction of new companies, growth of existing businesses as well as entrepreneurship support activities. The goals of LEDC are to accelerate and sustain the growth of a strong and vibrant economy and foster private sector investment in the city of London. LEDC provides support and expertise to facilitate the creation of new jobs and attraction of new investments in London that lead to economic growth and overall wealth creation in the London region. The Economic Partnerships Office serves to increase collaboration by working collaboratively through open and effective communication to achieve common goals. It serves to enhance economic growth for all Londoners by developing strategic partnerships with public, private and nongovernmental organizations. It encourages a supportive business environment by supporting LEDC as well as other economic development organizations/stakeholders and ensures that London businesses have the support they need to realize their full growth potential. Furthermore, the Economic Partnerships Office seeks and reviews potential business opportunities; supports business case and business plan development; manages existing projects and makes recommendations from a return focused profit maximization perspective. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area of Focus and Sub Priority contained in Council s Strategic Plan: Growing our Economy o Diverse and resilient economy o Diverse employment opportunities o Strategic, collaborative partnerships Page 97

18 Prior 3 Years Cost Containment/Revenue Generation Initiatives LEDC has successfully leveraged provincial and federal funding programs for external promotion, as well as expansion and growth of local London companies. In 2015, LEDC had over 50 active expansions, retention and attraction files that are expected to create 1,500 jobs and $50 million in new investments by the end of the year. Notable investments included IKEA, Kaiser Aluminium, Startech.com and Artisan Metal Finishing. The City s contract with LEDC is a fixed term agreement; the current contract was established in July 2015 and expires June Multi Year Base Budget Highlights Business Attraction & Retention has requested a budget with a net decrease of $979 thousand, representing an average annual decrease of 2.4%. This decrease is due to a strategic $1 million reduction in the annual contribution to the Economic Development Reserve Fund to offset an increased contribution to the residential Community Improvement Program in the downtown and Old East Village areas, which is another mechanism of economic development. The revised annual contribution to the Economic Development Reserve Fund is $5.9 million. This annual contribution will maintain the City s ability to fund investments that best accelerate London s economy and foster private sector investment in the City. Community Improvement/Business Improvement Associations Operating Highlights Description Of Service The Community Improvement/Business Improvement Associations (BIA) service area supports the development, redevelopment, revitalization and intensification of vacant and underutilized lands to take advantage of existing infrastructure and contribute to the revitalization of Downtown, Old East, SoHo and other distinct urban neighbourhoods that contribute to London s unique identity, to support the retention of significant built heritage assets. These community improvements result in increased investment and development, and help stabilize and increase the City s assessment base. Many of the service area s efforts are directed at individual property owners through incentive programs, while other efforts such as support of BIA s serve the larger community. Linking The Strategic Plan To The Base Budget Strengthening Our Community o Vibrant, connected, and engaged neighbourhoods Building a Sustainable City o Beautiful places and spaces Page 98

19 Growing Our Economy o Diverse and resilient economy o Urban regeneration o Strategic, collaborative partnerships Prior 3 Years Cost Containment/Revenue Generation Initiatives City funding of $106 thousand provided to the London Downtown Business Association (LDBA) that was used to fund the Main Street program has been eliminated. The levies collected by the LDBA now exclusively support the program. The BIA also leverages the City s various incentive programs. LDBA underwent a major expansion in 2015, which enlarged the area designated as an improvement area. As a result of the expansion, the number of tenants under LDBA increased from 215 to 523 and the City of London special levy increased by 74.5% over Service area re organized to provide for a more focused and seamless delivery of programs and coordination of the planning and incentive initiatives associated with urban regeneration within one business unit. The re organization also includes expanded collaboration with the LDBA and Old East Village BIA to promote, facilitate and connect with the City s various incentive programs Multi Year Base Budget Highlights Community Improvement/BIA has requested a budget with a net increase of $43 thousand, representing an average annual increase of 5.3%. The increase is driven by an increased contribution of $35 thousand to Old East Village BIA starting in 2016 along with a $8 thousand increase related to flow through costs of the current labour agreement. The $35 thousand increase in the annual contribution to the Old East Village BIA will support the BIA with cost pressures relating to a staff position previously funded through grants. The additional funding is offset by a corresponding reduction in the annual contribution to the Community Improvement Program Reserve Fund. The service will continue to advance consultation with the public about the benefits and expectations of infill and intensification projects and continue to provide planning support for focused programs to encourage economic revitalization of urban areas. Page 99

20 London Convention Centre Operating Highlights Description Of Service The London Convention Centre (LCC) is London s premier gathering place, where knowledge is shared, new connections are made and experiences delight. The LCC focuses on four key outcomes; driving the economy, supporting local businesses and organizations, adding vibrancy to the City s core, and remaining fiscally responsible. The hosting of conventions, conferences and events brings new people with new dollars to the community which helps drive the economy. Additionally, LCC is a community connector hosting numerous events for local charities and not for profit groups resulting in new connections and valuable fund raising. Linking The Strategic Plan To The Base Budget Growing our Economy o Diverse and resilient economy o Strategic, collaborative partnerships Prior 3 Years Cost Containment/Revenue Generation Initiatives For the past seven years LCC has generated an operational surplus. Each year the surplus is invested back into the facility in the form of an annual contribution to the LCC capital reserve. LCC is contracting Global Spectrum (Spectra) to sell naming rights generating future additional revenue. LCC has established strategic partnerships with Tourism London and London Economic Development Corporation to enhance sales and social media presence. As a result of these strategic partnerships LCC was able to open a new Ottawa sales office to generate new convention bid opportunities. In 2015, the LCC assumed daily parking booth coverage of the underground lot which provided new cross training opportunities for core LCC team members and improved the level of service and hours of coverage Multi Year Base Budget Highlights LCC has requested a budget with a net increase of $20 thousand, representing an average annual increase of 0.8%. The increase is a result of personnel costs and administrative expenses, partially offset by revenue growth in 2017, 2018 and Reconfiguration and renovation work on LCC began in October 2015 and is scheduled to be complete by July It is anticipated that the upgrades to the facility will result in enhanced event revenue growth. The increase in revenue will be used to fund debt repayments over the next 10 years. In 2016 LCC has reduced staff by 1 position due to lower event volumes as a result of the renovations work, however in both 2017 and 2019 LCC is seeking 2 additional staff (total 4 new positions) to support the forecasted increase in the volume of events resulting from the completion of the facility renovations. Page 100

21 Tourism London Operating Highlights Description Of Service Tourism London is a membership based, destination marketing organization responsible for delivering destination focused marketing activities to develop conventions and meetings, leisure travel and sports tourism for London businesses. Additionally, Tourism London facilitates destination and attraction development opportunities that have the potential of attracting additional visits and promotes local knowledge and pride in London s diverse assets. Linking The Strategic Plan To The Base Budget Growing our Economy o Diverse and resilient economy o Strategic, collaborative partnerships Prior 3 Years Cost Containment/Revenue Generation Initiatives In 2014 and 2015, London hosted the following premier events with the support of Tourism London: o The Memorial Cup that resulted in economic activity of approximately $8 10 million with 70,000 attendees; o The LPGA Golf Championship that resulted in economic activity of approximately $8 10 million with estimated attendance of 30,000; and o The Ontario Basketball Provincial Championships that resulted in economic activity of approximately $1.8 million which saw 180 teams and their families come to London over 3 weekends. Awarded the 2016 Country Music Week that is projected to generate economic activity of approximately $20 million. Between 2011 and 2014, tourism activity showed a perennial rise in spending and moderate increases in visitations, culminating in an estimated 1.9 million overnight visitors and 3.5 million day visitors with a direct economic impact of $630 million in The tourism sector supports an estimated 7,300 jobs and has accumulated approximately $120 million in local taxes from (Information provided by the Conference Board of Canada) Multi Year Base Budget Highlights Tourism London has requested a budget with a net increase of $110 thousand, representing an average annual increase of 1.4%. Factors contributing to the increase include an increase in Sports Tourism costs (purchased services) of $53 thousand to improve community outreach, user fee revenue decrease of $30 thousand, and increases in personnel and other expenditures of $27 thousand. Over the multi year budget, an added emphasis is being placed on the development of initiatives targeted to maintain and/or increase revenues in web sponsorships, membership programs and government programs. For example; Event Development Fund initiative, social media initiatives and kiosk program. Page 101

22 Covent Garden Market Operating Highlights Description Of Service The Covent Garden Market strives to provide Londoners and visitors with a unique shopping and gathering place, with tenants offering fresh local products and other varied services in the heart of downtown London, along with events that highlight our diversity. The Covent Garden Market manages the downtown public market which includes the Market (open 7 days a week), seasonal outdoor farmers market, Rotary square, Rotary rink and underground parking at the Market and Civic Square. The management activities performed include property management, leasing and retail management as well as marketing and event management. The Market with its tenants and parking garages serve the citizens of London, downtown businesses and tourists/visitors of London s core. Linking The Strategic Plan To The Base Budget Growing Our Economy o Local, regional, and global innovation o Strategic, collaborative partnerships Prior 3 Years Cost Containment/Revenue Generation Initiatives The Covent Garden Market has controlled costs by: o Replacing existing lighting with energy efficient lighting, which has resulted in reduced electricity consumption by more than 35% in the market and market parking garage, and 50% at the Civic Square parking garage; o Replacing three of nine HVAC units, reducing energy, repairs and maintenance costs at the market; and o Reduced water usage through the installation of hands free faucets. Parking rates have been increased, while maintaining competitiveness with neighbouring lots; for example, monthly and event parking rates have been increased at both parking garages. Common area maintenance rates charged to tenants have been increased to recover additional expenditures without impacting tenant occupancy Multi Year Base Budget Highlights With no City funding, the Covent Garden Market continues to provide a unique shopping and gathering place, with tenants offering fresh, local products. Recently, competition within the market styled shopping segment has increased, with new and pre existing locations including: Western Fair Market, Sunripe Market, Remark Market, 3 new Farm Boy Markets, Fresh Pick Markets, Goodwill Farmers Market, and Masonville Farmers Market. To stay competitive within this segment Covent Garden Market is effectively managing operational cost pressures to keep rent and common area rates low enough to allow current tenants to remain profitable and attract new tenants when needed. Page 102

23 Capital Overview ($000 s) Economic Prosperity Revised Proposed Proposed Proposed Proposed Total Total Total Classification Lifecycle 2, , ,251 5,681 8,932 Growth 1,255 5,000 5,000 5,000 10,000 Service Improvements 7,747 6,385 4,352 5,352 6,175 22,264 42,917 65,181 Total 11,663 7,045 5,703 10,996 6,771 30,515 53,598 84,113 Source of Financing Capital Levy (45) Reserve Funds 8,443 6,825 5,617 5,900 6,371 24,713 33,598 58,311 Debt (2,876) 2,750 2,750 17,500 20,250 Other 6, , ,052 2,500 5,552 Total 11,663 7,045 5,703 10,996 6,771 30,515 53,598 84,113 Lifecycle Renewal Growth Service Improvement Page 103

24 Major Capital Works in Ten Year Plan ($000's) Economic Prosperity Lifecycle GG Convention Centre Repairs 2,000 5,681 GG1772 Exterior Signage & Parking Garage Way Finding Enhancements 450 GG1780 Covent Garden Roof Replacement 350 GG1781 Replacement of 6 Rooftop HVAC Units & Make up Air Units 280 GG1782 Re lamping of Current Energy Efficient Lighting 87 GG1783 Replacement of Restaurant Elevator Mechanical Components 85 Total Economic Prosperity Lifecycle 3,252 5,681 Economic Prosperity Growth TS1308 Hwy 401 Interchange Projects 5,000 5,000 Total Economic Prosperity Growth 5,000 5,000 Economic Prosperity Service Improvement ID1145 Future Industrial Land Purchase 2,400 ID1150 ILDS Internal Servicing 9,333 34,433 ID1265 Skyway Industrial Park Phase II 1,500 ID2169 ILDS External Transportation Servicing 1,031 1,135 GG New Economy Fanshawe College 6, GG Fanshawe College Kingsmills 3,600 4,500 Total Economic Prosperity Service Improvement 22,265 42,918 TOTAL ECONOMIC PROSPERITY 30,516 53,599 Page 104

25 Major Capital Works in Ten Year Plan ($000's) Economic Prosperity Lifecycle GG Convention Centre Repairs 2,000 5,681 GG1772 Exterior Signage & Parking Garage Way Finding Enhancements 450 GG1780 Covent Garden Roof Replacement 350 GG1781 Replacement of 6 Rooftop HVAC Units & Make up Air Units 280 GG1782 Re lamping of Current Energy Efficient Lighting 87 GG1783 Replacement of Restaurant Elevator Mechanical Components 85 Total Economic Prosperity Lifecycle 3,252 5,681 Economic Prosperity Growth TS1308 Hwy 401 Interchange Projects 5,000 5,000 Total Economic Prosperity Growth 5,000 5,000 Economic Prosperity Service Improvement ID1145 Future Industrial Land Purchase 2,400 ID1150 ILDS Internal Servicing 9,333 34,433 ID1265 Skyway Industrial Park Phase II 1,500 ID2169 ILDS External Transportation Servicing 1,031 1,135 GG New Economy Fanshawe College 6, GG Fanshawe College Kingsmills 3,600 4,500 Total Economic Prosperity Service Improvement 22,265 42,918 TOTAL ECONOMIC PROSPERITY 30,516 53,599 Page 105

26 Operating Overview Environmental Services The City of London s Requested Tax Supported Multi Year Budget for Environmental Services is $83.9 million representing 3.8% of the net property tax supported budget. Outlined below is a breakdown of the 5 service groupings that make up the City of London s Environmental Services Program. Environmental Services, 3.8% KCCA, 2.3% LTVCA, 0.8% UTRCA, 14.3% Environmental Action Programs & Reporting, 3.6% Garbage, Recycling & Compositing, 79.0% Page 106

27 Requested Multi Year Budget ($000 s) SERVICE ENVIRONMENTAL SERVICES 2015 Net Budget 2016 Budget 2017 Budget 2018 Budget 2019 Budget Expense Net Expense Net Expense Net Expense Net Kettle Creek Conservation Authority % Lower Thames Valley Conservation Authority % Upper Thames River Conservation Authority 2,885 2,926 2,926 2,970 2,970 3,015 3,015 3,060 3, % Environmental Action Programs & Reporting % Garbage Recycling & Composting 15,909 28,297 16,187 28,847 16,432 29,321 16,653 29,865 17,025 1, % TOTAL ENVIRONMENTAL SERVICES 20,042 32,683 20,454 33,324 20,788 33,888 21,095 34,519 21,552 1, % TOTAL ENVIRONMENTAL SERVICES NET BUDGET Subject to rounding. Note: Boards and Commissions are reported as the net expenditure to the City with the exception of the London Police Service which contains gross expenditures and non tax revenue as a result of shared financial reporting systems. 83, Net Increase / (Decrease) Average Annual Net Percentage Increase/ (Decrease) Staffing Summary STAFFING Full Time Employee # Kettle Creek Conservation Authority Lower Thames Valley Conservation Authority Upper Thames River Conservation Authority Environmental Action Programs & Reporting Garbage Recycling & Composting Total Page 107

28 STAFFING Full Time Equivalents # Kettle Creek Conservation Authority Lower Thames Valley Conservation Authority Upper Thames River Conservation Authority Environmental Action Programs & Reporting Garbage Recycling & Composting Total Kettle Creek Conservation Authority Operating Highlights Description Of Service Kettle Creek Conservation Authority (KCCA) ensures the conservation, restoration and responsible management of water, land and natural habitats throughout the Kettle Creek watershed, benefiting seven (7) member municipalities and an approximate watershed population of 70,000. The City of London s proportion of levy based on modified current value assessment is 56.7% of the watershed covered by KCCA. KCCA promotes an integrated watershed management approach balancing human, environmental and economic needs for best results. The majority of KCCA s programs and services (flood forecasting and warning, hazard management plan input and review, source water protection) are mandated under the Conservation Authorities Act and the Clean Water Act. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Building a Sustainable City o Strong and healthy environment Strengthening our Community o Healthy, safe, and accessible city Prior 3 Years Cost Containment/Revenue Generation Initiatives Established an Efficiency Committee between Kettle Creek Conservation Authority and Long Point Region Conservation Authority (LPRCA) to investigate synergies in program and services. The collaboration resulted in a joint Elgin County Shoreline Management Plan, eliminating the Page 108

29 retention of multiple consultants and a real cost savings of approximately $40 thousand. The partnership has also led to joint purchases of equipment with costs shared between Kettle Creek Conservation Authority and LPRCA. User fees at KCCA s two campgrounds are increased as the market allows and costs contained to ensure a steady revenue stream of approximately $60 thousand per year. Revenues are re invested into the Authority s program and services and infrastructure. No municipal levy is used to support KCCA s campgrounds Multi Year Base Budget Highlights Kettle Creek Conservation Authority has requested a budget with a net increase of $123 thousand, representing an average annual increase of 6.7%. An increase in personnel costs is primarily associated with wage and benefit increases related to converting a previously funded temporary position out of grant funding in the capital budget to a permanent position funded out of the operating budget. The cost increases with the position will be spread out over four years and will be offset by self generating revenues filling the gap until the position is fully supported by base funding in Other base budget cost increases are driven by public safety and conservation land increases associated with hazard tree management due to Emerald Ash Borer and other tree diseases, in addition to relocation of public trails due to safety concerns. Lower Thames Valley Conservation Authority Operating Highlights Description Of Service The Lower Thames Valley Conservation Authority (LTVCA) serves the ten (10) member municipalities in the Lower Thames watershed including the City of London by delivering services and programs to protect and manage water and other natural resources in partnership with government, landowners, and other organizations. The City of London s proportion of levy based on modified current value assessment is 11.5% of the watershed covered by LTVCA. Natural habitats are protected and restored, research and monitoring of the environment is undertaken and reported upon, and public access to green space is facilitated through facilities and programming. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Building a Sustainable City o Strong and healthy environment Strengthening our Community o Healthy, safe, and accessible city Page 109

30 Prior 3 Years Cost Containment/Revenue Generation Initiatives Undertook removal and sale of dying ash trees within conservation authority properties. Harvested several forested properties using sustainable methods to improve forest health and generate revenue. Implemented energy efficient lighting and air conditioning at the administration building, replacing obsolete equipment Multi Year Base Budget Highlights Lower Thames Valley Conservation Authority has requested a budget with a net increase of $79 thousand, representing an average annual increase of 18.2%. The multi year budget accounts for an increase of 7 full time employees to address significant capacity issues within the current organization. Three positions in 2016 are proposed to be added for the following: o One of the Authority s key mandates, the prevention of loss of life and property due to the hazards of flooding and erosion. Presently, there is only one staff professional having the necessary credentials to provide monitoring, modelling, forecasting, warning and flood control operations. This position has added responsibilities for managing the Authorities IT and Information Systems, including GIS support for various programs; and for undertaking watershed wide monitoring including low flow conditions and water quality measurement; and for providing support for the administration of O.Reg 152/06, the Development and Alteration Regulation. o A Conservation Areas Management position will provide overall direction for the planning, development, operations and maintenance of some 25 properties owned by the LTVCA, with a combined budget in 2016 of $615 thousand. The focus of the position will be on public safety and risk management; increasing visitation and improving standards of maintenance. o A Ecology/Biology/Stewardship position to support existing and expanded stewardship programs (forestry, reforestation, habitat creation) and municipal land use planning responsibilities by making this expertise available within the Authority s staff complement to stakeholders. Four positions in are proposed to be added that relate to the watershed/lake Erie phosphorus reduction program, anticipated to be funded with senior government spending so the municipal levy impact will be nominal. Other program increases are expected to result from senior government programs focused on reduction of phosphorus contributions to the Thames River and tributaries of Lake Erie. Environment Canada is considering a target phosphorus reduction of 40%, with implications for widespread modifications of agricultural and other land use practices. The conservation authority anticipates a growing role in program delivery and watershed monitoring. Page 110

31 Upper Thames River Conservation Authority Operating Highlights Description Of Service The Upper Thames River Conservation Authority (UTRCA) covers the upper watershed of the Thames River, an area of 3,482 square kilometres. The watershed is mainly rural except for the larger urban centres of London, Stratford and Woodstock and has a total population of approximately 485,000. London is one of seventeen (17) member municipalities. The City of London s proportion of levy based on modified current value assessment is 65.2% of the watershed covered by UTRCA. The UTRCA s mission statement is Inspiring a healthy environment. Their mandate includes protection and enhancement of water quality, management and preservation of natural areas, and provision of outdoor recreation opportunities. Another key element of the UTRCA s mandate is to protect people and their property from flooding and erosion. The UTRCA s work enhances public safety through the operation of dams and dykes, flood forecasting and warning, plan review, and floodplain regulation. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Building a Sustainable City o Strong and healthy environment Strengthening our Community o Healthy, safe, and accessible city Prior 3 Years Cost Containment/Revenue Generation Initiatives The UTRCA Board of Directors approved a Municipal Levy Investment Plan in 2011 that called for $900 thousand in new municipal funding over four years. However, a variety of factors limited the plan s implementation including requests from municipalities to minimize increases, staff s ability to finance work from other revenue sources, as well as the conscious deferral or reduction of some work for austerity reasons. In terms of the overall success of the four year plan, the end result saw the UTRCA achieve only 50% of the four year plan s funding goals. While this obviously does not support the expected and necessary investments in services, it is a reflection of municipal economic challenges and the UTRCA s attempt to balance fiscal responsibility with program needs Multi Year Base Budget Highlights Upper Thames River Conservation Authority has requested a budget with a net increase of $175 thousand, representing an average annual increase of 1.5%. The Conservation Authority has started a strategic planning effort that will set new environmental targets for the Page 111

32 watershed. This plan will be developed during 2015/2016 and is expected to affect the budgets. Significant program changes to meet these targets are anticipated and early indications are that meaningful financial investments will be required in order to achieve measurable improvement in watershed health. With this strategic planning process started but outcomes unknown, Civic Administration recommends that a 1.5% net increase be utilized for and re evaluated during the 2017 annual budgetary update process once the strategic plan is finalized in the spring of At this time a 1.5% increase in the expenditures has been included until the amounts can be supported by and linked to the conservations strategic plan. Environmental Action Programs & Reporting Operating Highlights Description Of Service Environmental Programs provides many services to London s 175,000 households (single family and multi family homes) and over 370,000 Londoners. In addition, many services also support London s employment sector. This business area s key focus is on environmental leadership and acts as the central body for promoting a Green and Growing City with respect to the built environment (e.g., transportation network, housing infrastructure, site remediation, etc.). Environmental Programs works in collaboration with other key stakeholders at a local, regional, provincial, and national level, and is committed to being easily accessible to the citizens and businesses of London. Environmental Programs applies practical municipal and private sector experience with a focus on air quality, climate change mitigation and adaptation, community energy planning, active transportation, transportation demand management, urban watershed management, natural landscaping, community capacity building and community outreach. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Building a Sustainable City o Strong and healthy environment o Convenient and connected mobility choices Prior 3 Years Cost Containment/Revenue Generation Initiatives Environmental Programs staff have worked with a number of our community partners to assist with potential collaborations and actions that reduce costs. For example, assistance with community newsletters (which include environmental content) and other promotional materials and activities. This allows our community partners to apply their limited financial funds to other, higher value activities. Environmental Programs staff have established collaborative relationships with comparable communities primarily in Ontario that allow for quick and timely access to current public and community based information that significantly reduces the need to spend limited funds to obtain data and technical assistance. Page 112

33 Funding programs from senior levels of government, community foundations, and private sector foundations have been used to fund Environmental Programs projects. Examples include: o $50 thousand from the Federation of Canadian Municipalities (FCM)' Green Municipal Fund was used to fund Rethink Energy London activities which led to the new Community Energy Action Plan (CEAP) and a separate $12.5 thousand from FCM to examine renewable natural gas and compressed natural gas in vehicles. o $350 thousand from the Ministry of the Environment & Climate Change Showcasing Water Innovation Fund for 3 years for the Thames River Clear Water Revival initiative Multi Year Base Budget Highlights Environmental Action Programs & Reporting has requested a budget with a net increase of $17 thousand, representing an average annual increase of 0.6%. The increase is primarily due to wage, salary and benefit adjustments in accordance with existing employment agreements and increases in purchased services required to support major community initiatives such as the Community Energy Action Plan, London Energy Connections Program, Active and Green Communities, Active Transportation and Transportation Demand Management. Partially offsetting these budget pressures are increased other municipal revenues related to Water and Wastewater and Treatment recoveries. Garbage, Recycling & Composting Operating Highlights Description Of Service The goal is to contribute to the health of the environment and the citizens of London through appropriate collection and management of garbage, recyclables, yard materials, household special waste and other selected/designated materials. This is accomplished through collection of materials via direct curbside and multi residential collection or from resident drop off at one of the Depots (EnviroDepots or Household Special Waste Depot). Once collected the materials are managed through either disposal at the W12A landfill site, recycling at the City s Manning Drive Regional Material Recovery Facility (Blue Box Materials) or Household Special Waste Depot. Construction and demolition materials are also managed through composting and recycling at the City s contracted service provider s material recycling facility. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Building a Sustainable City o Robust infrastructure o Strong and healthy environment Leading in Public Service o Excellent service delivery Page 113

34 Prior 3 Years Cost Containment/Revenue Generation Initiatives The unit cost to process recyclables at the City s Manning Drive Regional Material Recovery Facility (MRF) decreases as more recyclables are sent to the facility due to economies of scale. The MRF opened four years ago and currently processes recyclables from eight other municipalities, Western University and Waste Management, in addition to London s recyclables. The City receives approximately $400 thousand to $500 thousand more per year in revenue for commodities sold from the MRF as a result of increased quality and material capture rates because of the modern MRF. In addition, there is about $400 thousand per year in avoided cost as a result of having the eight partners and Western use the MRF (processing fees would be higher if they were not using the MRF). Continued optimization of existing diversion, collection and disposal operations. For example, continued optimization of the garbage collection system has resulted in no increase in collection staff over the last ten years, even though the number of homes being collected has increased over 20%. Another example is the renegotiation of the Miller Waste collection and processing contracts to align their end dates which will result in the City receiving additional services and cost reductions valued at approximately $170 thousand (consisting of $55 thousand in additional services provided at no cost and $115 thousand reduction in costs per year). Renegotiation of garbage collection and disposal arrangements resulted in an increase of $140 thousand per year in fees paid by Western beginning in June Work began in 2015 to make minor revisions to the Environmental Compliance Approval for the W12A Landfill to allow five new point sources of waste that are currently outside of the service area for the landfill to dispose of material at W12A. If the approval is granted this may generate approximately $200 thousand to $400 thousand in new tipping fee revenue in 2016/ Multi Year Base Budget Highlights Garbage, Recycling & Composting has requested a budget with a net increase of $1.1 million, representing an average annual increase of 1.7%. The Garbage Collection and Disposal component of the budget represents a increase of $1.2 million or 2.4%. A required contribution to the Sanitary Landfill Reserve Fund represents approximately $600 thousand of the budget request. The Sanitary Landfill Reserve Fund provides a source of funds for the acquisition and development of land for future sanitary landfill sites and transfer stations, capital improvements, debt charges and other expenditures on existing landfill sites and transfer stations as approved by the Municipal Council. It should be noted that W12A has between 9 and 11 years of remaining capacity. The Garbage Collection and Disposal component of the budget includes major community initiatives to sustain waste diversion (by weight) from the landfill at 45%, ensure compliance with government regulations and legislation, and continued examination of resource recovery initiatives to increase waste diversion. Tipping fee revenue from W12A landfill can fluctuate significantly from year to year depending on the strength of the economy and external competition. The Recycling and Composting component of the budget represents a decrease of $51 thousand or 0.1%. Increased revenues are budgeted, however recycling revenue can fluctuate significantly from year to year as pricing for materials is tied to global commodity markets. Page 114

35 Capital Overview ($000 s) Environmental Services Revised Proposed Proposed Proposed Proposed Total Total Total Classification Lifecycle 815 4,095 1, ,725 9,920 11,230 21,150 Growth Service Improvements ,500 54,000 Total 894 4,095 1, ,225 10,420 64,730 75,150 Source of Financing Capital Levy Reserve Funds ,583 16,983 Debt 12,000 12,000 Other 824 3,895 1, ,225 10,020 36,147 46,167 Total 894 4,095 1, ,225 10,420 64,730 75,150 Lifecycle Renewal Growth Service Improvement Page 115

36 Major Capital Works in Ten Year Plan ($000's) Environmental Action Programs Lifecycle TS6020 Active Transportation 1,050 1,800 Total Environmental Action Programs Lifecycle 1,050 1,800 Total Environmental Action Programs 1,050 1,800 Garbage Recycling & Composting Lifecycle SW6025 Waste Diversion SW6051 Municipal Waste Study 400 SW6530 Material Recovery Facility 60 2,940 SW W12A Ancillary 750 1,350 SW W12A New Cell Construction 6,500 3,200 SW Landfill Gas Collection 740 1,310 SW Closed Landfill Management Total Garbage Recycling & Composting Lifecycle 8,870 9,430 Garbage Recycling & Composting Service Improvement SW6050 New & Emerging Solid Waste Technologies ,500 SW6080 Long Term Disposal Capacity 19,000 Total Garbage Recycling & Composting Service Improvement ,500 Total Garbage Recycling & Composting 9,370 62,930 TOTAL ENVIRONMENTAL SERVICES 10,420 64,730 Page 116

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38 Operating Overview Parks, Recreation & Neighbourhood Services The City of London s Requested Tax Supported Multi Year Budget for Parks, Recreation & Neighbourhood Services is $128.1 million representing 5.8% of the net property tax supported budget. Outlined below is a breakdown of the 2 service groupings that make up the City of London s Parks, Recreation & Neighbourhood Services Program. Parks, Rec. & Neighbourhood Services, 5.8% Parks & Urban Forestry, 38.0% Neighbourhood & Recreation Services, 62.0% Page 118

39 Requested Multi Year Budget ($000 s) PARKS, RECREATION & NEIGHBOURHOOD SERVICES Expense Net Expense Net Expense Net Expense Net Neighbourhood & Recreation Services 18,978 63,992 19,275 64,716 19,732 65,333 20,069 65,842 20,307 1, % Parks & Urban Forestry 11,762 11,956 11,905 12,159 12,108 12,307 12,256 12,458 12, % TOTAL PARKS, RECREATION & NEIGHBOURHOOD SERVICES 30,740 75,948 31,180 76,875 31,840 77,640 32,325 78,300 32,713 1, % Subject to rounding. SERVICE 2015 Net Budget 2016 Budget 2017 Budget 2018 Budget 2019 Budget TOTAL PARKS, RECREATION & NEIGHBOURHOOD SERVICES NET BUDGET 128, Net Increase / (Decrease) Average Annual Net Percentage Increase/ (Decrease) Staffing Summary STAFFING Full Time Employee # Neighbourhood & Recreation Services Parks & Urban Forestry Total STAFFING Full Time Equivalents # Neighbourhood & Recreation Services Parks & Urban Forestry Total Page 119

40 Neighbourhood & Recreation Services Operating Highlights Description Of Service Neighbourhood and Recreation Services provides accessible, quality spaces for community recreation programs, activities, and neighbourhood gatherings as well as activities and programs that enhance the health and well being of Londoners and community based organizations. Neighbourhood and Recreation Services also provides a broad spectrum of amazing recreational opportunities for the community, including but not limited to: aquatics and arena services, sports services, special events facilitation, golf, and Storybook Gardens. Other valuable services provided by Neighbourhood & Recreation Services include community and neighbourhood development and children and youth services. Linking The Strategic Plan To The Base Budget Strengthening Our Community o Vibrant, connected, and engaged neighbourhoods o Caring and compassionate services o Amazing arts, culture, and recreation experiences o Healthy, safe, and accessible city Building A Sustainable City o Beautiful places and spaces Growing Our Economy o Strategic, collaborative partnerships Leading in Public Service o Open, accountable, and responsive government Prior 3 Years Cost Containment/Revenue Generation Initiatives Reduced electrical and gas consumption through careful management of systems to achieve reductions in energy costs. Enhanced marketing of community centres to increase the number of visits, contributing to a reduced cost per visitor. Changes in child care policies and procedures have resulted in significant savings that have been reinvested directly back into fee subsidies allowing for more families to be served. Water consumption charges were cut in half at the spray pad in Storybook Gardens due to the recirculating water system implemented in Effectively implemented user fee rate increases across various sports and recreation services while maintaining marketplace competitiveness. Examples include: Page 120

41 o o The fee structure for swimming lessons and summer teams has been changed to differentiate products based on value received and duration resulting in increased revenues; and Enhancements to Storybook Gardens, including the spray pad and other park amenities, have allowed for increases to user fees Multi Year Base Budget Highlights Neighbourhood & Recreation Services has requested a budget with a net increase of $1.3 million, representing an average annual increase of 1.7%. The increase is primarily due to personnel cost pressures as a result of casual labour minimum wage increases and FTE increases to address inclusion and safety supervision issues, community and recreation facilities utility cost pressures, and enhanced funding for Community Grants and Recreation Subsidy programs to help meet community needs. These increases are partially offset by modest user fee changes, particularly in the fee structure for swimming lessons to more appropriately recognize the value received and duration of the product offering. A legislated minimum wage increase of 2.27% in 2016, combined with an anticipated annual increase of 2% is driving personnel cost pressures. Contributing to the overall personnel pressure are changes to Aquatics lifeguard wages to address recruitment and retention issues and casual labour increases in Community Centres, Community Recreation and Leisure Programs, Arenas, Storybook Gardens and Special Events to better meet increasing customer expectations, inclusion needs and safety supervision issues. Modest user fees adjustments were implemented to partially offset cost pressures within associated services. User fees for recreational services and facilities are re assessed each year, with a number of factors considered in order to make sure that programs, services, facilities and opportunities remain accessible, affordable and inclusive for all Londoners. For example, fee structures for swimming lessons have been revised to recognize and differentiate the various service offerings based on value received and duration. Recreation subsidies provide access to recreation opportunities for low income individuals and families; program funding has been increased by 20% in 2016, and 5% annually for , in order to align with recent trends related to financial assistance needs. Page 121

42 Parks & Urban Forestry Description Of Service The Parks and Urban Forestry service area provides three unique services related to the management of trees and natural spaces. Parks and Horticulture maintains and develops sports fields through weekly and annual maintenance programs to provide safe, high quality playing fields that Londoners can enjoy while also attracting tournaments that benefit from the high quality sports fields. Parks & Natural Areas Planning & Design provides professional & technical services for the assessment, planning, protection, design and management of the City s natural heritage system and parks and open space system. Urban Forestry provides for all aspects of tree maintenance such as implementation of the urban forest strategy, invasive species and pest management, plan review, pruning and risk assessment, tree removals, response to storm damage, tree planting on boulevards, maintaining the tree inventory database, replanting and injections, and managing public tree enquiries and complaints. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening Our Community o Amazing arts, culture and recreation experiences o Healthy, safe, and accessible city Building A Sustainable City o Convenient and connected mobility choices o Strong and healthy environment o Beautiful places and spaces o Responsible growth Prior 3 Years Cost Containment/Revenue Generation Initiatives Adopt a Park program and other community programs have generated hundreds of thousands of dollars of in kind labour from the business and residential community. Raised significant funds from the business community and volunteers through the Veterans Memorial Parkway Project, which is an innovative, award winning partnership to help fund landscape enhancements. Planted a significant number of new trees by engaging citizens with the Million Tree Challenge and by strengthening and leveraging partnerships. Renegotiated arrangement with Upper Thames River Conservation Authority for environmentally significant area management at a reduced fee resulting in savings of $72 thousand. Page 122

43 Multi Year Base Budget Highlights Parks & Urban Forestry has requested a budget with a net increase of $644 thousand, representing an average annual increase of 1.3%. Base budget increases are being driven by permanent and temporary personnel costs tied to existing collective agreements, and purchased services cost increases as a result of approximately 30 Ha of additional environmentally significant land managed by the Upper Thames Valley River Conservation Authority each year. Urban growth continues to put pressure on resources with changing service levels from rural landscape to urban landscape along with the addition of major urban horticultural entrance features on arterial roads. The base budget reflects current service level pressures, but as growth continues additional funding requests required to meet expanded service demands may be brought forward. The proposed budget begins to implement the Urban Forest Strategy in a significant way; it should be recognized that the strategy is not fully funded to meet Council s canopy coverage targets, but establishes a program to ramp up funding so that implementation can escalate over time. Page 123

44 Capital Overview ($000 s) Parks, Recreation & Neighbourhood Services Revised Proposed Proposed Proposed Proposed Total Total Total Classification Lifecycle 6,280 9,544 7,699 8,631 8,753 34,627 56,143 90,770 Growth 13,691 15,374 12,030 15,573 13,079 56,056 17,045 73,101 Service Improvements , ,650 5,750 10,400 Total 20,483 25,418 20,304 27,254 22,357 95,333 78, ,271 Source of Financing Capital Levy 3,280 6,607 7,565 7,863 8,916 30,951 56,076 87,027 Reserve Funds 1,236 2, , ,971 3,674 9,645 Debt 10,457 9,737 8,822 10,462 8,869 37,890 5,432 43,322 Other 5,510 6,608 3,742 5,724 4,447 20,521 13,756 34,277 Total 20,483 25,418 20,304 27,254 22,357 95,333 78, ,271 Lifecycle Renewal Growth Service Improvement Page 124

45 Major Capital Works in Ten Year Plan ($000's) Neighbourhood & Recreation Lifecycle RC2445 Senior Centres Lifecycle Repairs Update Security Systems and Customer Service Systems RC Recreation Facilities Lifecycle Repairs 14,828 20,452 RC Golf Courses Lifecycle Program 475 1,200 Total Neighbourhood & Recreation Lifecycle 16,263 23,022 Neighbourhood & Recreation Growth RC2756 East Multi Purpose Rec Centre Aquatics Anchored 7,764 RC2758 Southeast Multi Purpose Rec Centre Arena Anchored 27,131 Other Neighbourhood & Recreation Growth 600 1,900 Total Neighbourhood & Recreation Growth 35,494 1,900 Neighbourhood & Recreation Service Improvement Farquharson, Glen Cairn and Silverwoods Arena Repurposing 2,900 3,350 Total Neighbourhood & Recreation Service Improvement 2,900 3,350 Total Neighbourhood & Recreation 54,657 28,272 Parks & Urban Forestry Lifecycle Maintain District, Neighbourhood and Urban Parks 5,730 11,700 Downtown and Street Tree Planting Program 2,314 3,816 PD Maintain Open Space Network 1,480 3,100 PD Maintain Thames Valley Pathway 1,850 1,500 PD Maintain Sportspark Infrastructure PD Maintain Environmentally Significant Areas 800 1,200 PD Woodlot Management RC Multi Use Park Pathway Lifecycle 1,350 2,700 Page 125

46 Major Capital Works in Ten Year Plan ($000's) (cont'd) Parks & Urban Forestry Lifecycle (cont'd) RC Park Facilities Major Upgrades 2,190 4,355 TS Parks Major Upgrades 1,650 3,250 Total Parks & Urban Forestry Lifecycle 18,364 33,121 Parks & Urban Forestry Growth Various New Parks 20,562 15,145 Total Parks & Urban Forestry Growth 20,562 15,145 Parks & Urban Forestry Service Improvement PD1142 Enhanced Veterans Memorial Parkway 150 PD2044 Management of Emerald Ash 1,600 2,400 Total Parks & Urban Forestry Service Improvement 1,750 2,400 Total Parks & Urban Forestry 40,676 50,666 TOTAL PARKS, RECREATION & NEIGHBOURHOOD SERVICES 95,333 78,938 Page 126

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48 Operating Overview Planning & Development Services The City of London s Requested Tax Supported Multi Year Budget for Planning and Development Services is $25.1 million representing 1.1% of the net property tax supported budget. Outlined below is a breakdown of the 3 service groupings that make up the City of London s Planning & Development Program. Planning & Development Services, 1.1% Building Approvals, (18.8)% Development Services, 63.7% Planning Services, 55.1% Page 128

49 Requested Multi Year Budget ($000 s) PLANNING & DEVELOPMENT SERVICES Staffing Summary Expense Net Expense Net Expense Net Expense Net Building Approvals (1,124) 4,518 (1,077) 4,587 (1,249) 4,613 (1,187) 4,605 (1,198) (74) (1.9%) Planning Services 3,241 3,648 3,351 3,729 3,432 3,802 3,505 3,810 3, % Development Services 3,796 4,808 3,927 4,875 3,980 4,953 4,044 4,933 4, % TOTAL PLANNING & DEVELOPMENT SERVICES 5,913 12,974 6,201 13,191 6,163 13,368 6,362 13,348 6, % Subject to rounding. SERVICE 2015 Net Budget 2016 Budget 2017 Budget 2018 Budget TOTAL PLANNING & DEVELOPMENT SERVICES NET BUDGET STAFFING Full Time Employee # Building Approvals Planning Services Development Services Total Budget 25, Net Increase / (Decrease) Average Annual Net Percentage Increase/ (Decrease) STAFFING Full Time Equivalents # Building Approvals Planning Services Development Services Total Page 129

50 Building Approvals Operating Highlights Description Of Service Serving the building industry and the public through building permit issuance and related inspections for the protection of public health and safety by ensuring compliance with the Building Code Act and Ontario Building Code in support of a reliable infrastructure. Building permit approvals is a service provided to London home owners, home builders as well as the city s industrial, commercial and institutional building stakeholders. Building Approvals also administers the Backflow Prevention Program. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Growing our Economy o Diverse and resilient economy Prior 3 Years Cost Containment/Revenue Generation Initiatives Reviewed and considered comments received through on line customer service survey in an effort to be more efficient. Implemented an on line permit application review process, thus minimizing staff interaction at the counter. Plans underway for further expansion of the current e permit service offered to include institutional, commercial and industrial building types Multi Year Base Budget Highlights Building Approvals has requested a budget with a net decrease of $74 thousand, representing an average annual decrease of 1.9%. Cost pressures include salary, wage and fringe benefits due to existing employment agreements and increases in additional computers/phones, IPads and touch screens to meet service needs. In addition, the base budget includes the purchase of a scanner for the Records Retention strategic initiative. Microfilm/fiche scanning will provide the benefit of easily sharing information and replace the antiquated document imaging system that stores information now. Offsetting these cost pressures are increases in user fee revenues. It should be noted that the Building Approvals budget represents a net revenue source for the municipality, resulting in a reduction to the property tax levy. Service Adjustment results in an increase in revenue of $200 thousand. Included in the multi year budget is a service adjustment related to proposed increases in building permit fees in 2017 resulting in a net revenue increase of $200 thousand. A Building Permit Fee Stabilization Reserve has been established to accommodate for seasons with low building construction activity or conditions where costs exceed revenues. Over the past few years the building permit fee revenues were less than the costs to Page 130

51 administer the Building Code. Specifically, in 2014 the amount in the reserve consisted of 6.2% of the costs however industry stakeholders (London Home Builders Association) agreed the minimum reserve amount should be approximately 30%. When the reserve levels are extremely low, a building permit fee rate increase is warranted. The last building permit fee rate increase took place in November 2012 with the introduction of Building By law B 6. Service Adjustment results in an increase in revenue of $140 thousand. Included in the multi year budget is a service adjustment related to a proposed increase in sign permit fees in 2016 and 2017 that will result in increased revenue of $70 thousand each year. The current Sign & Canopy By Law is undergoing a comprehensive review and will be replaced with a new Sign By Law in In part, the review is being conducted to accommodate for new sign types to address gaps in the current By law and to keep up with industry sign standards. Sign permit fees have remained unchanged for the past 7 years whereas costs to administer the By law have increased. Planning Services Operating Highlights Description Of Service Land use planning services are provided to allow for positive growth and development, while protecting the City s most valuable resources, shaping the City s image, providing for healthy communities and attracting investment. This service ensures that we grow in a way that most effectively takes advantage of our existing infrastructure and minimizes unnecessary sprawl that is both unsustainable to build and unaffordable to maintain. This must be accomplished while maximizing opportunities for growth and economic development that helps to financially sustain our infrastructure over the long term. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Building A Sustainable City o Beautiful places and spaces o Responsible growth Growing Our Economy o Diverse and resilient economy o Urban regeneration Page 131

52 Prior 3 Years Cost Containment/Revenue Generation Initiatives Undertook ReThink London process in house, likely saving $1 million to $2 million in consulting fees; delayed various policy projects to achieve this. Re directed services of existing Planner, through secondment, to serve as Business Connector in Business Service London centre on main floor City Hall. Consulted with development industry and received Council approval to increase planning application fees. Introduced fee for telecommunications infrastructure application review Multi Year Base Budget Highlights Planning Services has requested a budget with a net increase of $272 thousand, representing an average annual increase of 2.0%. The increase is primarily due to salary, wage and fringe benefits due to existing employment agreements as well as inflationary increases in administrative expenses, rent and furniture and equipment. Development Services Operating Highlights Description Of Service Development Services processes applications under the Planning Act related to subdivisions, site plans, condominium, consents and minor variances through all stages from initial consultation to final assumption, bringing a consistent corporate approach from both a planning and engineering perspective. This group also administers development agreement compliance through inspection and security management and co ordinates commentary for other Policy Planning applications. The Business Liaison Unit works collaboratively with our area to remain Open for Business and At Your Service. The Development Services team serves both the development community and London s greater community in addressing the integration of growth projects into the existing built City through timely, quality development approvals. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Growing our Economy o Diverse and resilient economy Page 132

53 Prior 3 Years Cost Containment/Revenue Generation Initiatives Development Services arranged for Noise Attenuation Training experts to come to London and provide training in house for more than a dozen staff over multiple service areas at a fraction of the cost of sending individuals out of town for training. Two significant policy initiatives involving industry consultation were completed. These included the Security Policy and Baseline for Municipally Imposed Costs which provides definition, clarity and simplification for the calculation, collection and reduction and release of performance securities. Additional revenues have been generated by removing the cap for Site Plan applications and making adjustments to Planning application fees Multi Year Base Budget Highlights Development Services has requested a budget with a net increase of $213 thousand, representing an average annual increase of 1.4%. The multi year budget increase is primarily driven by salary, wage and fringe benefits due to existing employment agreements. It should be noted that specifically in 2016 there is a net decrease in user fee revenues based on historical trends. The decrease relates to Site Plan/Condo Application fees, Re inspection fees, Development Application Consent fees and Water Permit fees partially offset by increases in Official Plan/Zoning By law fees and Development Application Subdivision, Condo and Minor Variance fees. Page 133

54 Capital Overview ($000 s) Planning & Development Revised Proposed Proposed Proposed Proposed Total Total Total Classification Lifecycle 75 Growth 250 1,373 1, ,331 1,125 4,456 Service Improvements 200 Total 525 1,373 1, ,331 1,125 4,456 Source of Financing Capital Levy , , ,246 Reserve Funds Debt Other , ,160 Total 525 1,373 1, ,331 1,125 4,456 Lifecycle Renewal Growth Service Improvement Page 134

55 Major Capital Works in Ten Year Plan ($000's) Planning & Development Growth GG1034 Development Charges Consulting PD Year Official Plan Review & Associated Zoning By law Amendments PD2155 Growth Related Secondary Plans PD2162 New Urban Civic Spaces 2,006 Total Planning & Development Growth 3,331 1,125 TOTAL PLANNING & DEVELOPMENT 3,331 1,125 Page 135

56 Page 136

57 Operating Overview Protective Services The City of London s Requested Tax Supported Multi Year Budget for Protective Services is $643.9 million representing 29.2% of the net property tax supported budget. Outlined below is a breakdown of the 5 service groupings that make up the City of London s Protective Services Program. Protective Services, 29.2% Animal Services, 1.2% Fire Services, 35.2% London Police Services, 61.7% Corporate Security & Emergency Management, 1.1% By Law Enforcement & Property Standards, 0.8% Page 137

58 Requested Multi Year Budget ($000 s) PROTECTIVE SERVICES SERVICE 2015 Net Budget 2016 Budget 2017 Budget 2018 Budget 2019 Budget Expense Net Expense Net Expense Net Expense Net Animal Services 1,540 2,964 1,811 3,022 1,853 3,083 1,895 3,142 1, % By Law Enforcement & Property Standards 1,202 3,190 1,270 3,238 1,306 3,293 1,348 3,287 1, % Corporate Security & Emergency Management 1,609 1,804 1,762 1,835 1,791 1,864 1,820 1,885 1, % Fire Services 55,649 56,158 56,021 56,645 56,508 57,137 56,999 57,427 57,288 1, % London Police Services 94, ,400 97, ,984 98, , , , ,306 6, % TOTAL PROTECTIVE SERVICES 154, , , , , , , , ,701 8, % TOTAL PROTECTIVE SERVICES NET BUDGET Subject to rounding. Note: Boards and Commissions are reported as the net expenditure to the City with the exception of the London Police Service which contains gross expenditures and non tax revenue as a result of shared financial reporting systems. 643, Net Increase / (Decrease) Average Annual Net Percentage Increase/ (Decrease) Staffing Summary STAFFING Full Time Employee # Animal Services By Law Enforcement & Property Standards Corporate Security & Emergency Management Fire Services London Police Services Total 1,270 1,274 1,273 1,273 1,273 Page 138

59 STAFFING Full Time Equivalents # Animal Services By Law Enforcement & Property Standards Corporate Security & Emergency Management Fire Services London Police Services Total 1, , , , ,279.1 Animal Services Operating Highlights Description Of Service London s vision for animal services is London, a city where all pets have a caring, respectful and responsible home. London provides this service by ensuring there are by laws to protect and support citizens, visitors and animals. Animal Services promotes responsible actions through third party animal control contracts, community engagement and supporting animal welfare initiatives. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Caring and compassionate services Prior 3 Years Cost Containment/Revenue Generation Initiatives Pro active licensing blitzes have resulted in increased licensing renewals for dogs and cats. Furthermore, a restructuring of dog licensing and cat ID fees (which includes some discounts) has been implemented to reward responsible pet ownership and ultimately offer incentive for pet owners to voluntarily licence. This initiative will result in an increase to the licensing base overall, but the full impact will not be realized until a few licensing renewal cycles have passed. Page 139

60 Multi Year Base Budget Highlights Animal Services has requested a budget with a net increase of $397 thousand, representing an average annual increase of 6.1%. The cost pressures within the base budget are the result of increases in animal control contracts which were based on the projected Consumer Price Index rate for Ontario and a 2016 reduction to revenues and fees to better reflect historical actuals. Service Adjustment results in an increase in expenditures of $23 thousand. In 2015, under the Parks Patrol and Proactive Licensing Enforcement program, Animal Services launched a six mouth pilot program whereby routine patrol of all bike path accessible parks, off leash dog parks, and the City bike paths were monitored by an Animal Control Officer for infractions of the animal by laws. In addition to a great deal of public education and community visibility, the project resulted in a concentration of enforcement on the Dog Licensing and Control By law in two main areas; dogs at large (off leash) and unlicensed dogs. This service adjustment allows for the enhanced monitoring resulting in safer public spaces and improved dog licensing. By law Enforcement & Property Standards Operating Highlights Description Of Service The purpose of the Municipal By law Enforcement Services is to obtain compliance with City by laws, primarily on private and public property which focus on health and safety, consumer protection, nuisance control and quality of life issues. All citizens benefit from the enforcement of City by laws as neighbourhoods and overall quality of life in the community is improved. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Healthy, safe, and accessible city Prior 3 Years Cost Containment/Revenue Generation Initiatives Efficiencies have been achieved through restructuring that has resulted in Enforcement Teams as well as the use of mobile technologies. Introduction of inspection fees for non compliance. Cost recovery for registration of property standards orders on title. Page 140

61 Multi Year Base Budget Highlights By law Enforcement and Property Standards has requested a budget with a net increase of $128 thousand, representing an average annual increase of 2.6%. Multi year base budget increases relate to personnel costs tied to current employment agreements and purchased services costs related to enforcement actions and office rentals partially offset by increases in inspection fees, permits and other user fee revenues. In 2016, it is anticipated that a review of the business licensing by law will be finalized, potentially resulting in increased revenue and greater consumer protection (health, safety and nuisance control). Corporate Security & Emergency Management Operating Highlights Description Of Service Corporate Security and Emergency Management provides external and internal services regarding emergency and security matters. Emergency Management s focus is to prevent, mitigate, prepare for, respond to and recover from major community emergencies in the City of London. Corporate Security provides services to all service areas, agencies, boards and commissions on an as needed and request for service basis. Services provided include: the protection of assets (people and property), The Downtown Camera Program, fire/life safety programs, training and investigative/threat assessment responses. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Healthy, safe, and accessible city Prior 3 Years Cost Containment/Revenue Generation Initiatives Utilization of contracted vendors has allowed services to be delivered in the most cost effective and efficient manner. Existing base budgets were reallocated in 2015 to fund the public notification system and public awareness activities. These additional costs are permanently funded within the service areas existing base budget. Page 141

62 Multi Year Base Budget Highlights Corporate Security and Emergency Management has requested a budget with a net increase of $231 thousand, representing an average annual increase of 3.5%. The base budget increase addresses emerging security requirements resulting in a 2016 additional investment in Guard Services of $150 thousand. The remainder of the increase relates to flow through costs of the investment in Guard Services and personnel costs tied to current employment agreements. Fire Services Operating Highlights Description Of Service Fire Services is divided into six divisions, however, for budgetary purposes it is separated into two distinct service areas which are Fire and Rescue Services and Fire Prevention and Education Services. Fire and Rescue Services responds to various types of calls for service including, but not limited to structure fires, car fires, motor vehicle collisions, cardiac related events, carbon monoxide calls, and openair burning complaints for the purpose of preventing loss of life and injury to citizens and visitors to the City and loss of property. Many of the firefighters also serve in a secondary role on the department s specialty teams thereby permitting the London Fire Department to respond to hazardous materials calls, water and ice rescue calls and technical rescue calls. Approximately 16 firefighters are also trained as backup communications operators. Fire Prevention and Education Services conducts Fire Code request, complaint and information inspections, prosecutes non compliant property owners, investigates the cause and origin of fires and delivers public education programs toward the goal of improving behaviours with respect to fire safety so as to reduce loss of life, injury to citizens, firefighters and visitors to the City and the loss of property due to fire. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening Our Community o Healthy, safe and accessible city Leading in Public Service o Innovative and supportive organizational practices Page 142

63 Prior 3 Years Cost Containment/Revenue Generation Initiatives Limited the number of firefighter recruitments in Fire Fighting Division in 2013, 2014 and 2015 in order to remain within the approved operating budget. Furthermore, following extensive modeling, Fire Services has found it cost effective to use overtime to maintain service levels when staffing levels drop below established limits. Optimization of resources by utilizing firefighting personnel to deliver a number of public education initiatives such as After the Fire and the Smoke Alarm programs. Use of innovative strategies such as Fire Safety Marketing to maximize fire safety interactions with the public within existing operating budget. Invested in the structure of the training tower, including retrofitting it to use propane fuel, thereby extending the life cycle by 10 to 15 years. The overall investment was approximately 20% of the project cost to replace the existing tower Multi Year Base Budget Highlights Fire Services has requested a budget with a net increase of $1.6 million, representing an average annual increase of 0.7%. The base budget increase is a result of personnel costs and materials and supplies expenditures over the multi year budget period. There are flow through personnel costs including step increases for Firefighters and increases due to experience pay causing these personnel cost increases. Also, energy costs, public education costs (to reflect actual spending) and automotive supplies costs due to an aging fleet are all placing pressure on the Fire Services budget. In 2016, there is a reallocation of 3 staff from Fire and Rescue Services to Fire Prevention and Education. The adjustment reflects the greater focus being placed on the first two lines of defence, education and prevention. The Collective Agreement with the London Fire Fighters Association covering salaries and benefits expired on December 31, 2010, noting that approximately 95% of Fire Services total expenditures relate to personnel costs. The current arbitration covers a period of There have been no amounts included in the budgets for the unresolved labour contract. Page 143

64 Police Services Operating Highlights Description Of Service The primary mandate of the London Police Service (LPS) remains consistent to enhance the safety and security of the citizens of London. The Provincial Adequacy Standards mandate five core functions to be addressed by all police services in Ontario. They are: Crime Prevention, Law Enforcement, Assistance to Victims of Crime, Public Order Maintenance and Emergency Response. Success in accomplishing this mandate is achieved by: providing optimum public safety and security to enhance the quality of life in the community; fostering trusting, caring partnerships with the community in all its diversity; developing effective communications within our organization and with those we serve; promoting a safe and equitable workplace, allowing for the professional development of employees to their fullest potential; promoting training and lifelong learning; and acquiring and using resources efficiently and responsibly. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening Our Community o Healthy, safe and accessible city Prior 3 Years Cost Containment/Revenue Generation Initiatives The Police Service developed a Mental Health Crisis Response Strategy working with the Canadian Mental Health Association (CMHA). As a result, a mobile response team run by the CMHA was established that is responsive to Police Service referrals. This has resulted in reduced call times and cost avoidance of $208 thousand in Implementation of a Fraud Intake Line allowing an investigator to vet complaints prior to initiating an investigation. This is projected to save 2,892 hours annually or approximately $157 thousand. A Service Model Review of programs and services that are delivered by LPS was undertaken in order to identify appropriate service levels and alignment of programs. This is an ongoing process and changes will continue to be implemented in light of an increasing workload coupled with economic and fiscal constraints. During 2014 there was a significant organizational restructuring that resulted in a net reduction of 11 sworn and 3.5 civilian positions resulting in an annual savings of more than $1.5 million. Page 144

65 Multi Year Base Budget Highlights London Police Service has requested a budget with a net increase of $6.5 million, representing an average annual increase of 1.7%. For 2016, the increase is a result of salaries and fringe benefits from existing employment agreements. Other impacts include increased technology maintenance, a decrease in provincial funding towards the Provincial Anti Violence Intervention Strategy (Guns and Gangs), an increase in Workplace Safety and Insurance Board claims, increased ammunition and range maintenance costs and telecommunications. Partially offsetting these increases are reductions in fuel costs and increased revenue in relation to court security and prisoner transportation. For , increases in salary and fringe benefits are due to existing employment agreements, it being noted that budgeted increases are exclusive of the impact of the market value adjustment which will affect 2018 and Other drivers include insurance premiums including contributions to the self insurance reserve, utilities and technology maintenance. Offsetting these cost pressures is the continued increase of provincial funding for court security and prisoner transportation. Service Adjustment results in an increase in expenditures of $1.1 million. Included in the multi year budget is a service adjustment related to an investment in human resources totaling 6 positions (5 Police and 1 Civilian) beginning in These positions are within Foot Patrol, Human Trafficking, Use of Force Training and Communications Operators. The benefits of these additional positions will include: o Greater visibility (one benefit of which is deterrence of crime), greater coverage over a geographic area, helps to promote community based initiatives, and improves the perception of safety; o Community partnerships will be enhanced, and expanded pro active engagement with the public will be possible; o Additional protection and support for victims of human trafficking, increased prevention of human trafficking, greater ability to prosecute offenders, and cultivate partnerships domestically and internationally; and o More timely response when the public calls 911. The risk of not investing in these positions include the following: o Without a dedicated Human Trafficking Unit and additional Foot Patrol, there is a greater risk to public safety; o Without an investment in Use of Force, the London Police Service may not comply with legislation. Also, use of force equipment may not be adequately maintained; and o Without an investment in Communications, emergency calls from the public may not be answered and routed in a timely manner. Page 145

66 Capital Overview ($000 s) Protective Services Revised Proposed Proposed Proposed Proposed Total Total Total Classification Lifecycle 5,169 8,194 3,385 3,888 4,165 19,632 35,191 54,823 Growth 500 1,565 2,063 4,128 1,805 5,933 Service Improvements 700 1,985 2,685 47,500 50,185 Total 5,169 8,194 3,885 6,153 8,213 26,445 84, ,941 Source of Financing Capital Levy 650 3, ,677 2,785 8,713 21,862 30,575 Reserve Funds 4,829 3,567 2,536 3,113 3,365 12,581 26,513 39,094 Debt (310) 1, ,506 34,677 37,183 Other ,335 2,645 1,444 4,089 Total 5,169 8,194 3,885 6,153 8,213 26,445 84, ,941 Lifecycle Renewal Growth Service Improvement Page 146

67 Major Capital Works in Ten Year Plan ($000's) Emergency & Security Lifecycle GG1589 Facility Maintenance Security GG1600 Emergency Management Total Emergency & Security Lifecycle 800 1,200 Fire Services Lifecycle PP1045 Replace Portable Radios 245 1,416 PP Non Emergency Fire Vehicle Replacement PP Replace Firefighter Equipment 2,539 3,831 PP Emergency Fire Vehicle Replacement 1,991 6,207 PP Fire Stations Lifecycle Repairs 2,630 4,470 Total Fire Services Lifecycle 8,065 16,792 Fire Services Growth PP1043 Add Aerial Company 1,805 PP1087 New Fire Station No. 15 3,628 Total Fire Services Growth 3,628 1,805 Fire Services Service Improvement PP1090 Relocate Existing Resource to New Fire Station No. 16 2,685 PP1091 Replacement & Relocation of Fire Training Tower 7,500 Total Fire Services Service Improvement 2,685 7,500 Total Fire Services 14,378 26,097 Police Services Lifecycle PP4327 Phone System 172 PP4405 Portable Radio User Gear 1,279 2,748 PP4406 Storage Server Page 147

68 Major Capital Works in Ten Year Plan ($000's) (cont'd) Police Services Lifecycle (cont'd) PP Replace Police Vehicles 6,841 10,099 PP Headquarters Building Lifecycle Repairs 2,250 4,125 Total Police Services Lifecycle 10,767 17,197 Police Services Growth PP4480 Police Facility Needs Analysis 500 Total Police Services Growth 500 Police Services Service Improvement PP4462 LPS Facility Expansion 40,000 Total Police Services Service Improvement 40,000 Total Police Services 11,267 57,197 TOTAL PROTECTIVE SERVICES 26,445 84,494 Page 148

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70 Operating Overview Social & Health Services The City of London s Requested Tax Supported Multi Year Budget for Social & Health Services is $255.4 million representing 11.6% of the net property tax supported budget. Outlined below is a breakdown of the 6 service groupings that make up the City of London s Social & Health Services Program. Social & Health Services, 11.6% Social & Community Support Services, 26.0% Social Housing, 18.9% Middlesex London Health Unit, 9.6% London & Middlesex Housing Corporation, 15.1% Long Term Care, 8.0% Land Ambulance, 22.4% Page 150

71 Requested Multi Year Budget ($000 s) SERVICE SOCIAL & HEALTH SERVICES 2015 Net Budget 2016 Budget 2017 Budget 2018 Budget 2019 Budget Expense Net Expense Net Expense Net Expense Net Social Housing 12,554 24,050 12,369 24,145 12,239 23,520 11,854 23,259 11,784 (770) (1.6%) London & Middlesex Housing Corporation 8,569 8,992 8,992 9,422 9,422 9,800 9,800 10,220 10,220 1, % Long Term Care 4,963 22,563 5,016 22,652 5,086 22,744 5,157 22,845 5, % Land Ambulance 12,356 13,219 13,219 14,412 14,412 14,728 14,728 14,951 14,951 2, % Middlesex London Health Unit 6,095 6,095 6,095 6,095 6,095 6,095 6,095 6,095 6, % Social & Community Support Services 21, ,131 19, ,518 17, ,764 14, ,765 15,063 (6,580) (8.4%) TOTAL SOCIAL & HEALTH SERVICES 66, ,050 65, ,244 64, ,651 62, ,135 63,351 (2,829) (1.1%) TOTAL SOCIAL & HEALTH SERVICES NET BUDGET Subject to rounding. Note: Boards and Commissions are reported as the net expenditure to the City with the exception of the London Police Service which contains gross expenditures and non tax revenue as a result of shared financial reporting systems. 255, Net Increase / (Decrease) Average Annual Net Percentage Increase/ (Decrease) Staffing Summary STAFFING Full Time Employee # Social Housing London & Middlesex Housing Corporation Long Term Care Land Ambulance Middlesex London Health Unit Social & Community Support Services Total Page 151

72 STAFFING Full Time Equivalents # Social Housing London & Middlesex Housing Corporation Long Term Care Land Ambulance Middlesex London Health Unit Social & Community Support Services Total 1, , , , ,090.0 Social Housing Operating Highlights Description Of Service The City is the designated Service Manager for London and Middlesex County under the Housing Services Act 2011, responsible for funding and administering social housing programs, maintaining the coordinated access/centralized waiting list system and the subsidiary waiting lists by housing project address. The Housing Division monitors Social Housing Provider compliance with legislation and local policies, develops housing policy and programs, administers mortgage and rent subsidies, provides guidance to Social Housing Providers, and administers federal subsidies. The Affordable Housing Program applies federal, provincial and municipal funding toward the acquisition or construction of additional housing units that are affordable to low income and vulnerable Londoners. The program is administered under provincial legislation and agreements and guided by the local needs, priorities, and delivery options within the 10 year Homeless Prevention and Housing Plan. The Affordable Housing Program is transitioning and will be delivered by the new Housing Development Corporation (HDC), which was incorporated on October 27, Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening Our Community o Caring and compassionate services. Growing Our Economy o Urban Regeneration Leading In Public Service o Excellent service delivery. Page 152

73 Prior 3 Years Cost Containment/Revenue Generation Initiatives Cost reductions have been achieved as a result of improved business practices implemented in This includes enhanced processes to more closely monitor vacant housing units and to more efficiently follow up with housing providers that are not in compliance with legislated Rent Geared to Income and market rent targets. This service leverages the City s $2 million annual contribution to attract available federal and provincial subsidies to ensure an effective Affordable Housing Program is administered and sufficient affordable housing units are created for low income and vulnerable households in London and Middlesex Multi Year Base Budget Highlights Social Housing has requested a budget with a net decrease of $770 thousand, representing an average annual decrease of 1.6%. The net decrease in the Social Housing budget is primarily the result of anticipated Federal funding increases for Social Housing in 2016 and This budget also includes additional municipal revenues reflecting the funding formula with the County of Middlesex approved in These additional revenues will be partially offset by increased housing provider subsidies in 2016 and 2017, one time costs attributable to the LMHC office move in 2016, and increased costs to operationalize the HDC. Reductions in housing provider subsidies will help mitigate the reduced level of Federal funding in , as will reductions in budgeted costs to support the Housing Collaborative Initiative (HCI) technology. The budget reflects the new administrative structure of the HDC, with HDC taking over responsibility for the delivery of the Affordable Housing Program pending the final necessary approvals to establish the HDC. This new investment will be funded by increased allocation of the Investment in Affordable Housing revenue as well as savings in the Social Housing Administration program. HDC will work in partnership with the City s Social Housing service area and with new community partners to fulfill oversight requirements and the strategic management of the Affordable Housing Program portfolio. Future budgets will present the funding for the Affordable Housing Program as an appropriation to the HDC. Service Adjustment results in an increase in expenditures of $57 thousand. One additional staff is requested starting in 2016 to address Social and Affordable Housing Program compliance for existing as well as new affordable housing units developed under the new Housing Development Corporation. Social Housing administration includes managing municipal service contracts with 64 social housing providers throughout London and Middlesex who deliver 8,085 social housing units. This function requires ongoing administrative and program support. With the continued portfolio growth, the additional position is required to maintain program delivery compliance. Insufficient staff resources will impede the ability to provide quality service delivery supporting our most vulnerable Londoners in seeking housing. Senior level staff will continue to spend more time on administrative tasks and less time on policy or compliance/audit related activities that provide cost containment. Page 153

74 London & Middlesex Housing Corporation Operating Highlights Description Of Service London & Middlesex Housing Corporation (LMHC) provides homes to families and individuals living in poverty. LMHC s properties are owned by the City of London, LMHC s sole shareholder. LMHC provides ongoing stewardship of these assets, ensuring their continued viability to provide affordable homes. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our community o Caring and compassionate services Growing our economy o Urban regeneration Prior 3 Years Cost Containment/Revenue Generation Initiatives LMHC is committed to providing the communities of London and Middlesex with good value for their investment, and has been working diligently to contain costs and maximize efficiencies. Over the past few years, LMHC has focused on reducing costs through energysaving water, electricity, and natural gas initiatives, external building improvements, roof replacements, and building upgrades. Through ongoing assistance from the Service Manager and voluntary PricewaterhouseCoopers audits, LMHC has realized cost savings of approximately $260 thousand annually related to shared services with the City. Efforts in vacancy management has contributed to annual increases in rental revenues since LMHC continues to explore additional revenue streams, such as rooftop rentals to telecommunication companies for antennas, vending machines and onsite laundry that generate an average of $260 thousand a year Multi Year Base Budget Highlights LMHC has requested a budget with a net increase of $1.7 million, representing an average annual increase of 4.5%. The 2016 budget includes cost pressures in utilities, insurance and property taxes, mitigated by increased rental revenue resulting from LMHC s continued focus on vacancy and arrears management and through securing continued additional funding sources such as rooftop rentals to telecommunication companies for antennas, vending machines and onsite laundry. Forecasts for 2017 to 2019 do not include service changes but do include City funding to assist LMHC in maintaining their existing service levels. Similar pressures (utilities, insurance, property tax, etc.) are anticipated to continue impacting LMHC s budgets in 2017 through 2019 as in Page 154

75 Long Term Care Operating Highlights Description Of Service Dearness Home provides long term care services to 243 residents from the London Middlesex catchment area including respite, medical, nursing, personal, therapeutic and social work services. Dearness Home promotes the well being of individuals and families by providing a safe, secure, comfortable and caring community in which to live. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our Community o Healthy, safe, and accessible city Leading in Public Service o Excellent service delivery Prior 3 Years Cost Containment/Revenue Generation Initiatives Staffing reductions in the Dearness Home implemented in 2013 and 2014 have reduced on going salary costs by approximately $275 thousand annually. In addition, supply costs have been reduced by contracting with a supply chain firm specializing in senior s products and services. Preferred accommodation revenue has increased by continuing to adhere to a policy of ensuring everyone occupying a private room is paying the preferred accommodation premium as allowed under the Long Term Care Homes Act Multi Year Base Budget Highlights Long Term Care has requested a budget with a net increase of $275 thousand, representing an average annual increase of 1.4%. The budgeted increases relate to personnel cost increases in accordance with existing Collective Agreements and inflationary cost pressures in food, electricity and natural gas expenditures. The pressures within the budget are partially offset by increased provincial funding, and Ministry of Health and Long Term Care authorized user fee increases. As part of the budget, at no additional cost, Long Term Care is proposing the permanent implementation of staffing adjustments in support of resident care needs. These changes are the result of a pilot initiative started in July 2015 that included temporarily phasing out several part time nursing positions in order to temporarily create full time nursing positions. The staffing adjustments are required to support the increase in residents with multiple diagnoses, behavioural issues, psychiatric needs and medical complications. Furthermore, the 2016 budget contains a provision to increase the Volunteer Coordinator position from 0.5 FTE to 1.0 FTE due to the position s involvement in major projects and activities taking place at Dearness with the 200 volunteers and the changing needs of our residents. The costs of this initiative are offset by staff reductions in housekeeping, maintenance and administration, and by increased provincial funding. Page 155

76 Land Ambulance Operating Highlights Description Of Service Middlesex London Emergency Medical Services (MLEMS) is responsible for providing 24 hour emergency and non emergency prehospital medical care and transportation to individuals experiencing injury or illness. MLEMS strives to deliver an efficient and high quality emergency response and care service to the communities of London and Middlesex, with required provincial targets and standards as a minimum service level, and to contribute to the health of the communities through active collaboration with other health care, community and emergency services partners. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening Our Community o Healthy, safe, and accessible city Prior 3 Years Cost Containment/Revenue Generation Initiatives During 2014, MLEMS partnered with the City of London to obtain reduced pricing on fuel for EMS vehicles, contributing to an estimated $70 thousand in fuel savings during the first full year of implementation Multi Year Base Budget Highlights Land Ambulance has requested a budget with a net increase of $2.6 million, representing an average annual increase of 4.9%. Cost pressures include the full year impacts of adding four 24 hour vehicles in the County in the fourth quarter of 2015, personnel costs (wages, fringe and paid absences), and medical and equipment costs. The 2016 increase includes the full year impact of 24 hour service coverage for County residents. Previously there were four stations in the County that operated on a call back model at nights. In mid September 2015, these four stations changed to full 24 hour service, meaning the stations are staffed day and night. The annual cost of this change to the City is estimated at $382 thousand per year. The Land Ambulance budget is cost shared between the Province and municipalities (Middlesex County and City of London) at a ratio of 50/50. The City s portion of the Middlesex London share of the Land Ambulance budget is 84.46%. This City portion is calculated based on the weighted property assessment (85%) and call volumes (15%). Page 156

77 Service Adjustment results in an increase in expenditures of $1.0 million. The 2016 service increases are the result of the addition of 1 scheduler, a 0.5 training position and increased rent/facility costs related to a new centralized facility. Included in 2017 is the addition of a 12 hour vehicle in the city and increased rent/facility costs for the new centralized facility, 2 educator positions and 2 technical support staff. Included in the 2018 and 2019 budget are the addition of 12 hour vehicles in the city. The changes/enhancements proposed in the budget are in response to the increasing requirement for emergency medical services throughout the City of London and the County of Middlesex. In 2014, the number of calls for service was 78,915. This is an increase of 6.3% over The total number of calls for service in 2014 also represents an increase in calls of 29.8% since It is also noteworthy to point out that in 2014, the number of life threatening calls dispatched from the Central Ambulance Communication Centre (CACC) was 31,709. This is a 6.6% increase in life threatening calls from This budget has been built to increase the required ambulance hours needed each year to maintain key performance targets. Middlesex London Health Unit Operating Highlights Description Of Service The Middlesex London Health Unit aims to ensure both City and County residents have access to the public health services they need. From monitoring the region for communicable diseases, to developing programs and services for local families at all stages of their children s development and working with community partners to ensure the safety of the food we eat, the water we drink and the air we breathe, the Health Unit plays an important role in our community. The Health Unit is dedicated to preventing illness and injury, promoting and protecting one s health, and improving quality of life. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our community o Healthy, safe, and accessible city Prior 3 Years Cost Containment/Revenue Generation Initiatives Operational savings have been achieved through the effective management of information technology hardware and software such as moving to a virtualized server infrastructure (fewer hardware requirements) and by leveraging cooperative purchasing agreements through the province and other organizations. Reviewed insurance requirements and changed provider, lowering the Board s annual expenditure by approximately 40%. Reduced future employer paid benefit costs by fixing the employer portion upon retirement. Implemented a minimum number of years of service for entitlement to post retirement benefits. Page 157

78 Increased user fees in the sexual health and vaccine preventable disease clinics to cover the costs of contraceptives, and to administer vaccines that are not publicly funded. Implemented new revenue source by offering fit testing to other organizations Multi Year Base Budget Highlights Middlesex London Health Unit (MLHU) has requested a budget with no net increase or decrease over the multi year budget. The balanced budget is a result of increased funding from the Province due to funding formula changes for public health units, and the implementation of the Program Budgeting and Marginal Analysis (PBMA) process. These factors have allowed MLHU to maintain the municipal contribution throughout the period while experiencing cost pressures in regards to collective agreements, employer paid benefits related to increased claims and claim costs, as well as general inflationary pressures in other program related costs. The changes to the funding formula are based on recommendations of the Funding Review Working Group put forth in the September 2015 report. The report recommends allocating funding based on population and equity measures and it identifies MLHU as one of the lowest provincially funded health units based on these recommendations. As the Province implements the funding model, the Board will use increased provincial funding to maintain and strengthen public health programs in Middlesex London. The Province s tentative plans are to eliminate health unit funding inequities over the next 7 years, bringing the funding ratio to its target provincial/london/middlesex cost share ratio of 75%/21%/4% respectively (see table below for actuals vs. target). The PBMA process was recently adopted by MLHU to support the identification of opportunities for reallocation of resources from areas of lower impact to areas of high impact. PBMA is a criteria based budgeting process that facilitates reallocation of resources based on maximizing impact. It is anticipated that the MLHU budget will receive Board approval in February Provincial Health Unit Funding Ratio Target 2014 Actual 2015 Forecast 2016 Forecast Target Province 69.0% 69.8% 70.2% 75.0% City 26.1% 25.4% 25.1% 21.0% County of Middlesex 4.9% 4.8% 4.7% 4.0% Total 100.0% 100.0% 100.0% 100.0% Page 158

79 Social & Community Support Services Operating Highlights Description Of Service Social & Community Support Services provides: o Homeless prevention activities aimed at addressing, reducing and preventing homelessness for individuals and families; o Immigration services aimed at fostering economic opportunities and promoting a caring city through community partnerships that attract, support and retain immigrants in our community; o Subsidized transit aimed at supporting individuals by providing public transit subsidization for two target populations senior citizens and the visually impaired; and o Ontario Works, a provincially mandated and legislated employment program that provides integrated financial and employment supports to help move people toward self sufficiency. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area of Focus and Sub Priority contained in Council s Strategic Plan: Strengthening our community o Diverse, inclusive and welcoming community o Caring and compassionate services o Healthy, safe, and accessible city Growing our economy o Diverse and resilient economy o Diverse employment opportunities Prior 3 Years Cost Containment/Revenue Generation Initiatives Since 2010, the City has benefitted from additional Provincial subsidy due to the Province s decision to upload the municipal share of eligible Ontario Works Financial Assistance and Employment Assistance costs. Ontario Works service delivery continues to be provided in partnership with the community with a focus on leveraging resources. Programs were implemented that took pressure off emergency shelters resulting in successful shelter diversion. Joint practices between the emergency shelters and the City continue to identify chronic shelter use and prevention practices. Page 159

80 Multi Year Base Budget Highlights Social & Community Support Services has requested a budget with a net decrease of $6.6 million, representing an average annual decrease of 8.4%. The 2016 budget for Ontario Works includes a forecasted increase of 600 Ontario Works cases and a corresponding increase of 6 staff to maintain an existing ratio of 1 caseworker per 100 Ontario Works cases. The Ontario Works case costs reflect the most current average cost per Ontario Works case adjusted by a legislated 1% rate increase and a monthly benefit increase for singles of $25 per month effective November There is also a forecasted increase in employment related expenses to continue to address existing demand and growth in caseload. An increased provision for lease costs is included to cover an inflationary increase in the existing Market Tower lease as well as accommodate additional space acquired in the community to decentralize Ontario Works services. Notwithstanding these budgetary pressures, the net cost of this service is decreasing overall mainly due to the Provincial upload of the Ontario Works program. The City s net share will decrease from 8.6% to 5.8% in Also, the Province will absorb the full cost of the Children Dental Benefits in The budget includes a provision for further rate increases similar to the November 2015 legislated rate increase and a further increase of 100 Ontario Works cases in Forecasts also include inflationary increases for staffing and administrative costs, adjustments to leased space for Ontario Works decentralization and increased investment in employment programs to ensure continuous improvements in employment outcomes. Additional Provincial subsidy will continue to be realized until 2018 due to the Provincial upload of Ontario Works. In 2017, the municipal share will decrease to 2.8%; and in 2018, the upload will be complete. Page 160

81 Capital Overview ($000 s) Social and Health Services Revised Proposed Proposed Proposed Proposed Total Total Total Classification Lifecycle 2,608 2,608 2,608 2,708 2,758 10,682 16,348 27,030 Growth Service Improvements Total 2,608 2,608 2,608 2,708 2,758 10,682 16,348 27,030 Source of Financing Capital Levy Reserve Funds 2,608 2,608 2,608 2,708 2,658 10,582 15,948 26,530 Debt Other Total 2,608 2,608 2,608 2,708 2,758 10,682 16,348 27,030 Lifecycle Renewal Growth Service Improvement Page 161

82 Major Capital Works in Ten Year Plan ($000's) Social & Health Services Lifecycle PD Public Housing Upgrades 8,832 13,248 GG Dearness Major Upgrades 1,750 2,700 OW2755 Ontario Works Capital Replacement Total Social & Health Services Lifecycle 10,682 16,348 TOTAL SOCIAL & HEALTH SERVICES 10,682 16,348 Page 162

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84 Operating Overview Transportation Services The City of London s Requested Tax Supported Multi Year Budget for Transportation Services is $255.9 million representing 11.6% of the net property tax supported budget. Outlined below is a breakdown of the 3 service groupings that make up the City of London s Transportation Services Program. Transportation Services, 11.6% Parking, (5.0)% Roadways, 60.5% Public Transit (LTC), 44.5% Page 164

85 Requested Multi Year Budget ($000 s) SERVICE TRANSPORTATION SERVICES Staffing Summary 2015 Net Budget 2016 Budget 2017 Budget 2018 Budget 2019 Budget Expense Net Expense Net Expense Net Expense Net Parking (3,225) 2,611 (3,328) 2,686 (3,254) 2,765 (3,176) 2,823 (3,119) % Public Transit (LTC) 27,413 27,832 27,832 28,203 28,203 28,680 28,680 29,163 29,163 1, % Roadways 37,271 43,285 37,754 44,755 38,408 45,443 39,016 46,250 39,740 2, % TOTAL TRANSPORTATION SERVICES 61,459 73,728 62,258 75,644 63,357 76,888 64,520 78,236 65,784 4, % TOTAL TRANSPORTATION SERVICES NET BUDGET Subject to rounding. Note: Boards and Commissions are reported as the net expenditure to the City with the exception of the London Police Service which contains gross expenditures and non tax revenue as a result of shared financial reporting systems. STAFFING Full Time Employee # Parking Public Transit (LTC) NA NA NA NA NA Roadways Total Note: Public Transit (LTC) reports Full Time Equivalents, but does not report Full Time Employees therefore the total Full Time Employee # excludes LTC. STAFFING Full Time Equivalents # Parking Public Transit (LTC) Roadways Total , Net Increase / (Decrease) Average Annual Net Percentage Increase/ (Decrease) Page 165

86 Parking Operating Highlights Description Of Service This service provides access to convenient short term on street parking and long term off street parking to support businesses, commercial and institutional facilities and entertainment venues. This is important for a variety of reasons such as ensuring traffic flows during peak times, emergency vehicles have access to buildings and water connections and persons with accessibility parking permits have access to designated accessible parking spaces. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Building a Sustainable City o Robust Infrastructure Leading in Public Service o Excellent service delivery Healthy, safe and accessible city o Healthy, safe and accessible city Prior 3 Years Cost Containment/Revenue Generation Initiatives Parking enforcement arranged in house training for master meter technology by the Vendor at no cost which will increase efficiencies. Use of technology to monitor master meters in the field resulting in increased revenues. Growth in the Private Parking Enforcement Program addresses parking issues in private lots and generates revenue for the City Multi Year Base Budget Highlights Parking has requested a budget with a net increase of $106 thousand, representing an average annual increase of 0.8%. The increase is primarily driven by parking enforcement contractual obligations (renewed 5 year contract beginning January 2016), bank charges and salary, wage and fringe benefits due to existing employment agreements partially offset by increases in various fees for parking fines and parking lot revenues based on prior year trends. It should be noted that the Parking budget represents a net revenue source for the municipality, resulting in a reduction to the property tax levy. Parking will continue to replace individual meters with master meters (pay n display) to provide better customer service including more options for payment and more efficient maintenance and collection of coins. Page 166

87 London Transit Commission Operating Highlights Description Of Service London Transit is responsible for the provision of both conventional and specialized public transit service to all Londoners. London Transit s vision is to be The valued and trusted mobility choice for Londoners. This vision will be attained through delivering on its mission statement, which is Moving Londoners progressively, reliably and affordably. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Building a Sustainable City o Convenient and connected mobility choices Prior 3 Years Cost Containment/Revenue Generation Initiatives Continued annual focus on process review management program which, over the last 4 years has resulted in efficiencies that allowed 2.5 full time administrative positions to be re allocated to other areas versus increasing staff levels. Introduction of larger vehicles for specialized service (contracted) to allow for the provision of more trips without increasing service hours Multi Year Base Budget Highlights London Transit Commission has requested a budget based on 2015 service levels with a net increase of $1.7 million, representing an average annual increase of 1.6%. The increase is primarily due to increases in expenditures related to collective agreement impacts on personnel, fuel cost pressures and inflationary impacts on service contracts, energy and supplies. Partially offsetting these expenditure increases are increases in fare based revenues (rate increases in 2016 and 2018 to be determined at a later date by the Transit Commission) as well as increased reliance on Provincial Gas Tax to support ongoing operating costs. The London Transit Commission continues to have a disparity between ridership growth and service hour growth which continues to result in service quality issues. This is evidenced by the approximate annual 200,000 service hour deficit in conventional transit and approximate annual 15,000 non accommodated trips in specialized transit. The hours of service added over the last number of years have been minimal in relation to ridership growth due to economic challenges, including the constraints on public investment. Page 167

88 Roadways Operating Highlights Description Of Service Roadways is responsible for transportation mobility management delivered through a customer focused lens. The planning for sustainable transportation includes rapid transit, active transportation, the road safety and downtown parking strategies. The design and administration of capital construction projects renews and expands the system. Asset management efforts are measuring the infrastructure gap and managing the network condition of roads, bridges, sidewalks, traffic signals, street lighting, pavement markings and signage. Operational services include snow plowing to keep the network serviceable all year. Management of the School Crossing Guard program is provided by this Service. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area of Focus and Sub Priority contained in Council s Strategic Plan: Building a Sustainable City o Robust Infrastructure o Convenient and connected mobility choices o Strong and healthy environment Leading in Public Service o Excellent service delivery Prior 3 Years Cost Containment/Revenue Generation Initiatives Effective lobbying, applications and agreements for senior government funding for Highway 401 Interchange and active transportation projects. Implementation of new cost saving technologies including LED street lighting, durable pavement markings and pavement recycling technologies to help close the transportation infrastructure gap. Increased use of data collection technology to make traffic and sign data collection more efficient. Partnerships with other organizations such as the organizations in the London Middlesex Road Safety Committee to maximize benefits out of existing resources. Effective use of seasonal workers and rental fleet for Operations. Page 168

89 Multi Year Base Budget Highlights Roadways has requested a budget with a net increase of $2.5 million, representing an average annual increase of 1.6%. Budget pressures include electricity cost increases for traffic signals and street lights (electricity unit pricing with an average annual increase of 6.8%), salary, wage and fringe benefits due to existing employment agreements, and increases for snow control based on prior year trends. Accommodated within the multi year budget is the implementation of phase 1 of the Light Emitting Diodes (LED) street lights upgrade. LED lights will improve visibility for drivers, cyclists, and pedestrians as well as reduce annual energy consumption. To fund this $5.0 million project in 2015, the City self financed $3.8 million from the Efficiency, Effectiveness, and Economy reserve with the remaining funding coming as an incentive from London Hydro on behalf of the Ontario Power Authority. The multi year budget accounts for the payback of financing utilizing energy and maintenance savings that resulted in this implementation. The multi year budget accounts for the Red Light Camera Program commencing in Costs of this program are anticipated to be offset by Red Light Camera Infraction revenue. Page 169

90 Capital Overview ($000 s) Transportation Services Revised Proposed Proposed Proposed Proposed Total Total Total Classification Lifecycle 41,329 41,942 41,845 40,718 41, , , ,873 Growth 33,752 87, , , , , , ,018 Service Improvements 3,539 2,525 6, , ,725 Total 78, , , , , , ,163 1,202,616 Source of Financing Capital Levy 21,408 19,375 22,018 22,110 25,288 88, , ,598 Reserve Funds 6, Debt 7,073 17,344 18,455 13,498 12,206 61,503 29,889 91,392 Other 44,138 95, , , , , , ,476 Total 78, , , , , , ,163 1,202,616 Lifecycle Renewal Growth Service Improvement Page 170

91 Major Capital Works in Ten Year Plan ($000's) Parking Service Improvement TS4207 Downtown On Street Pay and Display 100 Total Parking Service Improvement 100 Total Parking 100 Roadways Lifecycle TS Road Network Improvements Main Life Cycle Renewal 53,454 72,162 TS Bridge Rehab Life Cycle Renewal 14,400 21,600 TS Road Network Improvements Local & Rural 28,000 48,000 TS Traffic Signal Maintenance Program 14,145 21,764 TS Street Light Maintenance Program 8,745 16,660 TS Lifecycle Sidewalk Repair & Replacement 4,800 7,200 Miscellaneous Roadways Lifecycle 7,890 12,210 Total Roadways Lifecycle 131, ,596 Roadways Growth TS1134 Richmond St & Fanshawe Park Rd Intersection Improvements 7,100 TS1348 Wonderland Rd Widening (Phases 1 to 4) 3,809 53,181 TS1430 Rapid Transit Road Widenings 254,723 47,242 TS1355 Wharncliffe Rd Widening & Improvements 22,127 TS Bike Lanes 3,131 4,697 TS1489 Western Road Widening (Platts Lane to Oxford St) 23,069 TS Fanshawe Rd E Widening (Fanshawe/Highbury Intersection) 11,340 TS Veterans Memorial Parkway Phase 1 (Extension 2 through lanes between Huron Street and Clarke Rd) 11,623 Page 171

92 Major Capital Works in Ten Year Plan ($000's) (cont'd) Roadways Growth (cont'd) TS1523 Bradley Ave Extension (Wharncliffe to Wonderland) 12,727 9,458 TS1405 Hamilton Road Upgrades (Gore Rd to Old Victoria Rd) 16,294 TS Bradley Ave Widening (Dearness to Pond Mills) 15,263 TS1484 Sarnia Road Widening (Wonderland to Sleightholme) 8,320 TS1476 Clarke Rd Widening (VMP Extension to Fanshawe Park Rd) 1,782 22,929 Future Road Widenings & Growth Studies 65, ,439 Total Roadways Growth 425, ,503 Roadways Service Improvement TS1136 Western Rd & Philip Aziz Ave Improvements 8,975 TS5012 Audible Pedestrian Signal Program Total Roadways Service Improvement 9, Total Roadways 566, ,399 Public Transit Lifecycle MU1200 Fleet Radio Replacement 125 MU1210 Fair Processing Equipment 1,495 MU Bus Purchase Replacement (Lifecycle) 30,764 54,659 MU Existing Facility Upgrades 1,800 3,000 Total Public Transit Lifecycle 34,184 57,659 Public Transit Growth Rapid Transit Expansion Vehicles & Facility Expansion 13,064 41,105 Total Public Transit Growth 13,064 41,105 Total Public Transit 47,248 98,763 TOTAL TRANSPORTATION SERVICES 613, ,163 Page 172

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94 Operating Overview Corporate, Operational and Council Services The City of London s Requested Tax Supported Multi Year Budget for Corporate, Operational & Council Services is $201.6 million representing 9.1% of the net property tax supported budget. Outlined below is a breakdown of the 4 service groupings that make up the City of London s Corporate, Operational & Council Services Program. Corporate, Operational & Council Services, 9.1% Corporate Planning & Administration, 4.4% Council Services, 6.7% Public Support Services, 0.9% Corporate Services, 88.0% Page 174

95 Requested Multi Year Budget ($000 s) CORPORATE, OPERATIONAL & COUNCIL SERVICES Staffing Summary Expense Net Expense Net Expense Net Expense Net Corporate Services 42,682 47,757 43,127 48,760 44,037 49,693 44,871 50,361 45,442 2, % Corporate Planning & Administration 2,156 2,271 2,152 2,318 2,197 2,394 2,271 2,400 2, % Council Services 3,252 3,417 3,346 3,469 3,356 5,390 3,370 3,465 3, % Public Support Services 289 8, , , , % TOTAL CORPORATE, OPERATIONAL & COUNCIL SERVICES 48,379 61,875 48,943 63,089 49,996 66,145 51,019 64,920 51,606 3, % Subject to rounding. SERVICE 2015 Net Budget 2016 Budget 2017 Budget 2018 Budget 2019 Budget TOTAL CORPORATE, OPERATIONAL & COUNCIL SERVICES NET BUDGET STAFFING Full Time Employee # Corporate Services Corporate Planning & Administration Council Services Public Support Services Total , Net Increase / (Decrease) Average Annual Net Percentage Increase/ (Decrease) Page 175

96 STAFFING Full Time Equivalents # Corporate Services Corporate Planning & Administration Council Services Public Support Services Total Corporate Services Operating Highlights Description Of Service Corporate Services delivers an array of centralized internal administrative services to all service areas within the City of London. The services provided for within Corporate Services include: Accessibility for Ontarians with Disabilities (AODA) service supports, Asset Management, Dispatch, Employee Systems, Energy Conservation, Facilities, Fleet Management, Graphics, Surveying and Technical Services, Human Resources, Human Rights, Legal Services, Finance Payroll Services, Purchasing, Realty Services, Risk Management and Information Technology (ITS). These centralized services ensure the effective and efficient delivery of internal administrative services. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Leading in Public Service o Innovative and supportive organizational practices o Proactive financial management o Excellent service delivery Building a Sustainable City o Robust infrastructure o Strong and healthy environment Page 176

97 Prior 3 Years Cost Containment/Revenue Generation Initiatives An emphasis on energy management and conservation has resulted in significant savings, such as the Facilities Energy Management Program that generated more than $131 thousand in annual cost avoidance and $225 thousand in rebates/incentives and the implementation of energy procurement strategies that has resulted in cost avoidance of over $6 million since Since 2012, corporate energy management staff have completed over 40 projects accessing over $300 thousand in Conservation and Demand Management (CDM) incentives from London Hydro and Union Gas. City staff have also applied for 30 additional projects within this timeframe which could result in accessing an additional $1.1 million in CDM incentives when completed. The purpose of these projects are to contain and reduce the financial impacts of energy costs and reduce environmental impacts from energy use within the City of London s facilities and operations. A zero based budget review was undertaken in ITS in 2014 for the development of the 2015 budget. This identified savings in accounts and assisted with the realignment of budgets. This area continues to use the zero based budget approach Multi Year Base Budget Highlights Corporate Services has requested a budget with a net increase of $2.8 million, representing an average annual increase of 1.6%. The budgeted increases are the result of utilities and computer software and licensing costs growing over the rate of inflation as well as foreign currency exchange rate cost pressures; personnel cost increases due to existing collective agreements; and water/wastewater recoveries. Facilities is experiencing significant cost pressures outside the City s span of control. Between , utility rate increases will average: natural gas 9.1%, chilled water and steam 7%, electricity 6.8%, and water supply 3%. This equates to approximately a $980 thousand budget increase for utilities, noting that Facilities covers most of the City s facilities including recreation centres, arenas and others. The operating costs of the City s internal fleet of vehicles and equipment, such as maintenance, fuel, licensing and capital replacement costs are offset by the internal rental rate recoveries from the various service areas. This results in a balanced Fleet Management budget. Corporate Planning & Administration Operating Highlights Description Of Service This area provides leadership and direction to the organization, focusing and aligning all corporate activities to the results identified in Council s Strategic Plan. This area also provides information and archive management services through the City Clerk s office. Page 177

98 Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Leading in Public Service o Innovative and supportive organizational practices o Excellent service delivery o Open, accountable, and responsive government o Collaborative, engaged leadership Prior 3 Years Cost Containment/Revenue Generation Initiatives Transitioning to a web based Report to the Community ( has saved printing costs and will allow for a more efficient process for annual updates of the report. An organizational review was completed in 2015, resulting in the re alignment of initiatives between Corporate Management, Community and Economic Innovation, and Government Liaison. These changes enabled budgets to reflect costs in the appropriate service areas Multi Year Base Budget Highlights Corporate Planning and Administration has requested a budget with a net increase of $120 thousand, representing an average annual increase of 1.4%. The significant factors impacting the multi year budget accounts for an increase of $100 thousand relating to Municipal Council s Immigration Strategy and net personnel cost increases of $9 thousand. Personnel costs represent approximately 80% of the budget. As a result of staffing reviews undertaken in 2015, these costs have been managed to a total increase of 0.5%. Page 178

99 Council Services Operating Highlights Description Of Service It is the role of Municipal Council to represent the public; to consider the well being and interests of the municipality; to develop and evaluate the policies and programs of the municipality; to determine which services the municipality provides; to ensure that administrative policies, practices and procedures and controllership policies, practices and procedures are in place to implement the decisions of council; to ensure the accountability and transparency of the operations of the municipality, including the activities of the senior management of the municipality; to maintain the financial integrity of the municipality; and to carry out the duties of a municipal council under the Municipal Act, 2001 or any other Act. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Leading in Public Service o Open accountable, and responsive government o Collaborative, engaged leadership Prior 3 Years Cost Containment/Revenue Generation Initiatives The migration to electronic agendas has resulted in savings in corporate print and courier costs and have allowed Municipal Council members, staff and members of the public to access agendas sooner Multi Year Base Budget Highlights Council Services has requested a budget with a net increase of $125 thousand, representing an average annual increase of 0.9%. The budgeted increase is mainly due to the provision of funding for the Integrity Commissioner and maintenance and update costs associated with Council chambers and committee rooms (microphones, speakers, lights, computers). Page 179

100 Public Support Services Operating Highlights Description Of Service Public Support Services includes the following: Administration of Justice (Provincial Offenses Administration POA), Taxation, Customer Relations, Corporate Communications, Licensing and Certificates and Cafeteria. POA provides court services for the public and justice stakeholders; Taxation provides the system through which the City s primary source of revenue is managed (tax billing, tax collection and payment processing); Customer Relations provides front line services in responding to residents/customers and connecting them with the services they need in a timely, professional and personalized manner; Corporate Communications plays an integral role in informing and engaging Londoners on a variety of activities and accomplishments of Council and Services Areas; Licensing and Certificates provides for a variety of regulatory affairs such as licenses (marriage, raffles, bingos), permits and certificates (vital statistics, foreign pensions); Cafeteria allows for City Hall visitors (citizens, businesses, community groups, Municipal Council and employees) to quickly get a meal while conducting municipal business. Linking The Strategic Plan To The Base Budget The base budget is linked to the following Strategic Area Of Focus and Sub Priority contained in Council s Strategic Plan: Leading in Public Service o Open, accountable and responsive government o Excellent service delivery Prior 3 Years Cost Containment/Revenue Generation Initiatives An e filing initiative that started in 2013 with the London Police Service has resulted in a significant reduction of keying tickets (25,000 30,000 charges per year) in POA court services saving staff time and increasing data quality Multi Year Base Budget Highlights Public Support Services has requested a budget with a net increase of $222 thousand, representing an average annual increase of 15.9%. The increase is a result of judicial fee increases, inflationary and volume related increases to postage and courier costs, and initial investments in the City of London citizen dashboard. POA has increased revenues as the Province has introduced a bill that provides for license plate renewals to be denied until such time as all outstanding fines have been collected. This is anticipated to begin in It should be noted that the POA and Licensing & Certificates budgets represent a net revenue source for the municipality, resulting in a reduction to the property tax levy. Page 180

101 Capital Overview ($000 s) Corporate, Operational & Council Services Revised Proposed Proposed Proposed Proposed Total Total Total Classification Lifecycle 7,669 10,130 9,509 9,472 10,258 39,370 68, ,398 Growth Service Improvements 9, ,363 3,000 5,363 Total 17,124 10,993 10,009 9,972 10,758 41,733 71, ,761 Source of Financing Capital Levy 1, ,400 3,427 2,107 7,424 22,759 30,183 Reserve Funds 5,941 8,103 8,109 6,045 8,152 30,409 45,269 75,678 Debt 8,693 1,900 1,900 1,900 Other ,000 3,000 5,000 Total 17,124 10,993 10,009 9,972 10,759 41,733 71, ,761 Lifecycle Renewal Growth Service Improvement Page 181

102 Major Capital Works in Ten Year Plan ($000's) Corporate Services Lifecycle GG1050 Corporate Systems Update 1,250 5,750 GG1055 One Voice Communications 3,400 3,000 GGAPPL Application, Data, Information & Process 3,019 3,892 GGMOD Network Modernization 1,560 4,435 GGSTOR Primary Storage Replacement 1,600 4,550 GGITSEC Security Event and Incident Management Replacement GGENDUSER End User Devices & Productivity Tools ME1206 Fuel System Management ME1407 Fleet and Equipment Maintenance 150 ME2016 Vehicle & Equipment Replacement 19,021 32,710 GG1320 Courts Administration Building Upgrade GG Municipal Buildings Major Upgrades 1,880 1,920 GG City Hall Major Upgrades 4,000 6,000 TS Operation Facilities Lifecycle 2,520 4,390 Total Corporate Services Lifecycle 39,370 68,027 Corporate Services Service Improvement TS1346 Corporate Asset Management 338 TS1350 Corporate Asset Management Software 25 TS Facility Energy Management 2,000 3,000 Total Corporate Services Service Improvement 2,363 3,000 TOTAL CORPORATE SERVICES 41,733 71,027 Page 182

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104 Financial Management The City of London s Requested Tax Supported Multi Year Budget for Financial Management is $466.7 million representing 21.2% of the net property tax supported budget. Outlined below is a breakdown of the 3 services that make up the City of London s Financial Management Program. Financial Management 21.2% Other Related Financing 5.3% Finance 4.8% Capital Financing 89.9% Page 184