RECOMMENDATIONS ALL AMOUNTS REPORTED IN THOUSANDS ($000 S) Property tax supported 2016-2019 net multi-year budget Operating Budget Amendments 1. That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following permanent expenditure and revenue changes to the 2017-2019 operating budget BE APPROVED; it being noted that the 2016-2019 average annual tax levy increase would remain at 2.8%. Operating Budget Amendments (Recommended Permanent) Case # Description Budget Category 2017 2018 2019 1 2 Energy Prices New Cap and Trade Program Expenditure Inc/(Dec) 800 800 900 Provincial regulation beginning on January 1, 2017 related to Revenue (Inc)/Dec (800) (800) (700) the implementation of a greenhouse gas emissions Cap and Net - - 200 Trade Program will result in higher energy costs. Gross expenditures in 2017-2019 are budgeted at $800 thousand, $800 thousand, and $900 thousand respectively, with a strategic use of the Operating Budget Contingency Reserve to phase-in the net impact to the tax levy. Carrying/Holding Costs On City Owned Properties Expenditure Inc/(Dec) 400 400 400 An increased contribution to the Land Acquisition Reserve Revenue (Inc)/Dec (100) (100) - Fund is being recommended to be used as a funding source for Net 300 300 400 the operational needs of strategically purchased buildings by the City, it being noted that the reserve fund by-law will need to be changed to allow for the funds to be used for this purpose. Gross expenditures of $400 thousand per year beginning in 2017 are required and have been partially offset with a strategic use of the Operating Budget Contingency Reserve to phase-in the net impact to the tax levy. Page 1
Operating Budget Amendments (Recommended Permanent) Case # Description Budget Category 2017 2018 2019 3 Updated Debt Servicing Budget Expenditure Inc/(Dec) (300) (300) (300) An annual budget reduction to debt servicing expenditures of Revenue (Inc)/Dec - - - $300 thousand beginning in 2017 primarily due to lower Net (300) (300) (300) interest rates attributed to issued debt in 2016 and future forecasted debt issuances. Total Net Budget Amendments Incremental Net Increase / (Decrease) - - 300 - - 300 2. That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following permanent expenditure and revenue changes to the 2017-2019 operating budget BE CONSIDERED; it being noted that the 2016-2019 average annual tax levy increase would rise from 2.8% to 2.9%. Operating Budget Amendments (For Consideration Permanent) Case # Description Budget Category 2017 2018 2019 4 5 UTRCA Environmental Targets Strategic Plan Expenditure Inc/(Dec) 179 372 580 An operating budget increase to support the Environmental Revenue (Inc)/Dec - - - Targets Strategic Plan recently approved by the Upper Net 179 372 580 Thames River Conservation Authority Board. LMHC Building Maintenance and Tenant Services Expenditure Inc/(Dec) 258 323 389 The London & Middlesex Housing Corporation has submitted Revenue (Inc)/Dec - - - an operating budget increase resulting from an increased Net 258 323 389 demand for emergency building repairs including electrical repairs, pest control, plumbing repairs and general maintenance. Total Net Budget Amendments Incremental Net Increase / (Decrease) 437 695 969 437 258 274 Page 2
3. That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following one-time expenditure and revenue changes to the 2017-2019 operating budget BE CONSIDERED; it being noted that these changes have no tax levy impact. Operating Budget Amendments (For Consideration One Time) Case # Description Budget Category 2017 2018 2019 6 7 Community Economic Roadmap Implementation Expenditure Inc/(Dec) 150 150 150 A gross expenditure request of $150 thousand per year from Revenue (Inc)/Dec (150) (150) (150) 2017-2020 to assist with the implementation of London s Net - - - Community Economic Road Map consistent with Council s Strategic Plan. The recommended source of financing for this one-time initiative is the Economic Development Reserve Fund resulting in no impact to the 2016-2019 tax levy. HDC Additional Investment In Affordable Housing Expenditure Inc/(Dec) 2,000 - - Development Revenue (Inc)/Dec (2,000) - - A one-time additional investment in affordable housing Net - - - development in 2017 of $2 million is being requested by the Housing Development Corporation. The recommended source of funding for this budget amendment is 2016 surplus, if available. Total Net Budget Amendments Incremental Net Increase / (Decrease) - - - - - - Page 3
Capital Budget Amendments 4. a) That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following capital budget changes for 2017-2019, representing a $4.6 million decrease in the capital budget, BE APPROVED; it being noted that these changes have no tax levy impact. Capital Budget Amendments Lifecycle Renewal Case # 8 9 Description 2017 2018 2019 Public Art Restoration Rationale: New project for lifecycle maintenance on public art. Source of Financing: Public Art Maintenance Reserve Fund Municipal Waste Study Rationale: Increase in funding for an individual Environmental Assessment to develop long term solid waste resource recovery and disposal plans. Source of Financing: Sanitary Landfill Reserve Fund Total 2016-2019 95 145 169 409 1,000 200 500 1,700 10 Vehicle & Equipment Replacement Rationale: Increase funding for vehicle and equipment replacement due to cost and program adjustments. 393 36 601 1,030 Source of Financing: Vehicle & Equipment Reserve Fund Other Lifecycle Renewal Amendments (2016-2019) - Library Capital Plan (e.g. Facility Renewal) (419) 225 126 (68) 11 - Covent Garden Roof Replacement Source of Financing: Library Facilities & Equipment Reserve Fund, Covent Garden Market Reserve (350) (350) Note: Capital budget amendments reflect requested investment (i.e. excludes sources of financing) Page 4
Capital Budget Amendments Growth Case # Description 2017 2018 Total 2016-2019 Northwest and Southeast Libraries Rationale: Defer Northwest from 2019 to 2020. (3,330) (3,330) 14 Defer Southeast from 2018 to 2019. (3,330) 3,330 - Increase funding to Southeast Library to reflect recent higher tender results for facility projects. 1,038 1,038 15 Multi-purpose Recreation Centre Southeast Rationale: Increase funding to reflect recent higher tender results for 240 261 244 745 facility projects. Transportation Rationale: Revise select Transportation Growth projects - Total 11,167 (14,057) (588) (3,478) Advance Projects: TS1489 Western Rd Widening - Platts Lane to Oxford 11,600 (11,600) - TS1134 Richmond St & Fanshawe Park Rd Intersection Improvements 2,000 (2,000) - TS1621-1 Veterans Memorial Parkway - Ph 1 - Huron to Clarke 1,000 (1,000) - TS1408 Wickerson Rd Upgrades - Ironwood to Southdale 200 (200) - 16 TS1407-1 Southdale Rd Upgrade Phase 1 - Wickerson to Bramblewood 300 (300) - TS1496-2 Sunningdale Rd Widening - Ph 2 Intersection Upgrades 138 (138) - Defer Projects: - TS1406 Sunningdale Rd Updgrade - South Wenige to Highbury (3,083) (3,083) TS1633 Veterans Memorial Parkway - Advanced Land Acquisition (800) 800 (600) (600) Revise Funding: - TS1629-1 Southdale Rd Widening - Farnham to Pine Valley 155 155 TS1358 Pack Rd Upgrades- Colonel Talbot to Bostwick 200 200 TS1041 Transportation Impact Study (50) (50) (50) (150) 17 Other Growth Amendments (2016-2019) - New Fire Station #15 (deferred from 2018/2019 to 2020) (1,065) (1,863) (2,928) Note: Capital budget amendments reflect requested investment (i.e. excludes sources of financing) 2019 Page 5
Capital Budget Amendments Service Improvement Case # 2 18 19 20 Description 2017 2018 2019 Total 2016-2019 Carrying/Holding Costs on City Owned Properties Rationale: Repairs to buildings on Old Victoria Hospital site (War Memorial and Old Medical School) after assumption from LHSC. Source of Financing: Land Acquisition Reserve Fund 1,000 1,000 Revision to Capital Project for Ontario Works Desk-Side Service Delivery Model Rationale: Funding for conversion to deskside service for Core and 250 250 East Ontario Works offices. Source of Financing: Social Services Reserve Fund Facility Energy Management Rationale: Increase funding for energy savings projects. 400 400 200 1,000 Source of Financing: Energy Management Reserve Fund Other Service Improvement Amendments (2016-2019) - Glen Cairn and Silverwoods Arena 80 80 - Relocate Resources for Fire Station #16 (deferred from 2019 to 2020) (200) (1,535) (1,735) - Western Road & Philip Aziz (deferred from 2017 to 2018) (6,000) 6,000 - Total Amendments Total Revenue Total Tax Levy Impact Note: Capital budget amendments reflect requested investment (i.e. excludes sources of financing) 8,126 (11,305) (1,458) (4,637) (8,126) 11,305 1,458 4,637 - - - - Page 6
b) That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act 2001, as amended, the following forecasted capital budget changes for the 2020-2025 period, representing a $19.6 million increase in the capital budget, BE APPROVED in principle (subject to annual review). Capital Budget Amendments 2020 2025 Case # Description 2020-2025 Lifecycle Renewal 8 Public Art Restoration 1,014 10 Vehicle & Equipment Replacement (1,038) 11 Library Capital Plan (820) 11 Covent Garden Roof Replacement 350 11 Replace Firefighter Equipment (110) 12 Police Equipment 1,308 12 Replace Police Vehicles 540 13 London Transit Highbury Facility Demolition and Rebuild (estimated $45.6 million project, $15 million 2022-2025, $30.6 million beyond) 15,000 Growth 14 Northwest Library (deferred from 2019 to 2020) 4,704 16 Transportation Growth Projects (2020-2025 impact of changes) 1,188 17 New Fire Station #15 (deferred from 2019 to 2020) 3,886 17 New Spray Pads - increased funding 52 17 Transportation Growth Projects (advanced/deferred projects) (8,266) Service Improvement 20 Glen Cairn and Farquharson Arenas (1,290) 20 Relocate Resources for Fire Station #16 (deferred from 2019 to 2020) 3,102 Total 19,619 Page 7
Other Budget Recommendations 5. That, in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the following actions be taken with respect to the operating budget (Appendix A, page 26): a. The revised 2017 tax levy BE READOPTED in the gross amount of $xx and in the net amount of $xx after recognizing an estimated $xx of increased taxation from assessment growth. b. The revised 2018-2019 forecasted tax levy BE READOPTED in the gross amount of $xx and in the net amount of $xx. 6. That, in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the following actions be taken with respect to the capital budget (Appendix C, page 36): a. The revised 2017 capital budget BE READOPTED in the amount of $xx. b. The revised 2018 capital budget BE READOPTED in the amount of $xx. c. The revised 2019 capital budget BE READOPTED in the amount of $xx. d. The revised 2020-2025 capital forecast BE APPROVED in principle in the gross amount of $xx (subject to annual review). 7. That the 2017 Corporate Capital Cash Flow (page 40) that identifies the accounting recognition of capital expenditures for 2017, consistent with Public Sector Accounting Board standards, BE APPROVED. 8. That the Reserves and Reserve Fund Overview BE APPROVED; it being noted projections are subject to annual review and adjustment (Appendix D, page 41). 9. That the Civic Administration BE DIRECTED to bring forward any necessary by-laws regarding the operating and capital budgets for introduction at the Municipal Council on December 6, 2016. 10. That the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer and the City Clerk BE INSTRUCTED to prepare the 2017 Tax Levy By-law for introduction and enactment by the Municipal Council at the appropriate time. Page 8