TABLE OF CONTENTS 2017-2019 Multi-Year Amendments... 1 Operating Amendments... 3 2016-2019 Multi-Year Capital And Ten Year Capital Plan (Including Capital Amendments)... 7 Appendix A - Operating Overview... 14 Appendix B Staffing Changes Overview... 23 Appendix C - Capital Overview... 25 Appendix D - Reserves & Reserve Funds Overview... 29 Appendix E - Debt Overview... 35
2017-2019 MULTI-YEAR BUDGET AMENDMENTS ON DECEMBER 6, 2016, MUNICIPAL COUNCIL APPROVED THE 2017 ANNUAL BUDGET UPDATE. THIS WAS THE FIRST ANNUAL UPDATE TO THE 2016-2019 MULTI-YEAR BUDGET. The average annual increase from rates will remain at 2.8% as approved in the 2016-2019 Multi-Year (Table 1). Municipal Council approved a total of 20 budget amendments that were the result of new provincial regulation, new Council direction, and cost drivers from changes in economic conditions. The budget amendments can be categorized as follows: 1. Operating Amendments There were a total of 7 operating budget amendments approved by Municipal Council. An additional operating budget amendment submitted by the Housing Development Corporation related to an additional investment in affordable housing development was referred to the 2016 Year-End Operating discussion to consider surplus as a potential funding source. 2. Capital Amendments There were a total of 13 capital budget amendments approved by Municipal Council. The capital budget amendments were funded through a change in funding mix of debt, reserve fund, and non-tax supported sources that did not impact the tax levy. A summary of the budget amendments are listed below. Table 4-2016-2019 Multi-Year Operating (Amounts Include Amendments 1-3 & 4-7) Page 1
Table 1-2016-2019 Multi-Year Operating (Includes Amendments During The 2017 Annual Update) 2017 Update Summary Impact on Tax Levy Avg. Annual Rate Payer Average 2016 2017 2018 2019 Annual % Impact 1 % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8% $ 76 (Tax Levy) 536,434 552,073 567,915 584,314 Cumulative Amendment - - 65 331 $ - Revised (Tax Levy) 536,434 552,073 567,980 584,645 Incremental Increase / (Decrease) - - 65 266 Revised % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8% $ 76 1. Average rate payer owning a home with an assessed value of $221,000 in 2015 (excludes the Education tax portion). 3.0% 2.5% 2.5% 2.5% 2016 2019 Multi Year 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.0% 2016 2017 2018 2019 Revised Page 2
Operating Amendments Amendment Case 1 Regulatory Energy Prices New Cap and Trade Program 2016 2017 2018 2019 Expenditure Inc/(Dec) - 800 800 900 Revenue (Inc)/Dec - (800) (800) (800) Requested Tax Levy From Rates (Cumulative) - - - 100 Incremental Increase / (Decrease) - - - 100 Rationale: Ontario is moving forward implementing a greenhouse gas emissions Cap and Trade Program with the overall goal of reducing human produced greenhouse gas emissions while rewarding innovations. The Province has indicated that its current go-live date is January 1, 2017. This regulation will increase the cost of consuming carbon-based fuels used by the City and its Agencies, Boards and Commissions. Carbon based fuels include; natural gas, steam, propane, gasoline, and diesel (excluding the 5 percent bio-diesel component of B5 blends). Gross costs in 2017-2019 are budgeted at $800 thousand, $800 thousand and $900 thousand respectively, with a strategic use of the Operating Contingency Reserve to phase-in the net impact to the tax levy. Amendment Case 2 Council Direction Carrying/Holding Costs On City Owned Properties 2016 2017 2018 2019 Expenditure Inc/(Dec) - 400 400 400 Revenue (Inc)/Dec - (100) (100) - Requested Tax Levy From Rates (Cumulative) - 300 300 400 Incremental Increase / (Decrease) - 300-100 Rationale: The City has assumed/will assume a number of properties which will require costs to be incurred for property maintenance and security. An increased contribution to the Land Acquisition Reserve Fund is being recommended to be used as a funding source for 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. Some of the buildings assumed by the City over the last couple of years include Lorne Avenue Public School, Colborne Building (SOHO), War Memorial (SOHO) and Old Medical Building (SOHO). Gross costs of $400 thousand per year beginning in 2017 are required with a strategic use of the Operating Contingency Reserve to phase-in the net impact to the tax levy. Page 3
Amendment Case 3 Cost Driver Updated Debt Servicing 2016 2017 2018 2019 Expenditure Inc/(Dec) - (300) (300) (300) Revenue (Inc)/Dec - - - - Requested Tax Levy From Rates (Cumulative) - (300) (300) (300) Incremental Increase / (Decrease) - (300) - - Rationale: This budget amendment consists of savings within the multi-year budget debt servicing costs category, primarily a result of lower than anticipated interest rates (rate changes relate to issuance of 10 year debentures) for both debt that was issued in 2016 and future forecasted debt issuances. Amendment Case 4 Cost Driver UTRCA Environmental Targets Strategic Plan 2016 2017 2018 2019 Expenditure Inc/(Dec) - 179 179 179 Revenue (Inc)/Dec 1 - (179) (179) (179) Requested Tax Levy From Rates (Cumulative) - - - - Incremental Increase / (Decrease) - - - - Rationale: The Upper Thames River Conservation Authority (UTRCA) Board of Directors recently approved its new Environmental Targets Strategic Plan which proposes the most significant programming change in the Authority s nearly 70 year history. The 2017 funding request of $179 thousand was approved on a permanent basis with the funding source being assessment growth. Any additional funding to support the UTRCA operations or implementation of the Environmental Targets Strategic Plan would be brought forward during future budget updates. 1. Expenditure increase funded from assessment growth. Page 4
Amendment Case 5 Cost Driver LMHC Building Maintenance and Tenant Services 2016 2017 2018 2019 Expenditure Inc/(Dec) - 258 323 389 Revenue (Inc)/Dec - (258) (258) (258) Requested Tax Levy From Rates (Cumulative) - - 65 131 Incremental Increase / (Decrease) - - 65 66 Rationale: The request for this amendment is driven by a continued need for building repairs to maintain existing service levels within London & Middlesex Housing Corporation (LMHC) properties, specifically emergency building repairs including electrical repairs, pest control, plumbing repairs and general maintenance. In 2015-2016, a building assessment was completed for each LMHC property. The assessment, received after the multi-year budget submission, provides detailed evaluations of LMHC property conditions and will form the first step in developing a longterm capital sustainability plan. From 2017-2019, $258 thousand will be drawn down from the Social Housing Major Repairs Reserve Fund with the balance of $65 thousand in 2018 and $66 thousand in 2019 funded from an increase in tax levy. Amendment Case 6 Council Direction Community Economic Roadmap Implementation 2016 2017 2018 2019 Expenditure Inc/(Dec) - 100 100 100 Revenue (Inc)/Dec - (100) (100) (100) Requested Tax Levy From Rates (Cumulative) - - - - Incremental Increase / (Decrease) - - - - Rationale: A total investment of $100 thousand per year was approved from 2017-2019 to be funded from the Economic Development Reserve Fund. The funding will be used by the Community Economic Roadmap s 5 Action Teams who are responsible for the implementation of their respective economic priority identified in the Roadmap. Page 5
Referred To 2016 Year End Surplus Discussion Amendment Case 7 Cost Driver HDC Additional Investment In Affordable Housing Development 2016 2017 2018 2019 Expenditure Inc/(Dec) - 2,000 - - Revenue (Inc)/Dec - (2,000) - - Requested Tax Levy From Rates (Cumulative) - - - - Incremental Increase / (Decrease) - - - - Rationale: The one-time funding request of $2 million by the Housing Development Corporation (HDC) for additional investment in affordable housing development was referred to the 2016 year-end surplus discussion. At that time, Council will decide if an additional investment in affordable housing development will be approved. Amendment Case 21 Council Direction Free Transit For Children Ages 5 12 2016 2017 2018 2019 Expenditure Inc/(Dec) - 150 150 150 Revenue (Inc)/Dec - - - - Requested Tax Levy From Rates (Cumulative) - - - - Incremental Increase / (Decrease) - - - - Rationale: $150 thousand per year was approved to provide free transit for children ages 5-12. Although there is an expenditure increase in the table above, the net tax levy increase from rates will remain at zero because the budget amendment increase will be offset by a budget reduction identified in the existing corporate budget. Page 6
2016-2019 Multi-Year Capital And Ten Year Capital (Including Capital Amendments) Capital Summary Note 1: Includes adjustments for Amendments 2, and 8 20. 2016-2019 Multi-Year 2016 2017 2018 2019 Total 2020-2025 2016-2025 Capital Plan Total 220,951 207,709 261,215 218,342 908,216 1,046,567 1,954,782 Total Revised (submitted Nov 7, 2016) 220,951 215,835 249,910 216,884 903,579 1,066,186 1,969,765 Total Capital Expense Increase/(Decrease) 1-8,126 (11,305) (1,458) (4,637) 19,619 14,982 Sources of Financing Capital Levy (CL) - Debenture (D) (3,845) 2,566 (2,853) (4,131) 20,600 16,469 Reserve Fund (RF) 2,719 1,006 1,246 4,971 1,244 6,215 Other (O) - - Non-tax Supported (NTS) 9,252 (14,877) 148 (5,477) (2,224) (7,701) Total Revenue Increase/(Decrease) 8,126 (11,305) (1,458) (4,637) 19,619 14,982 Tax Levy Impact - - - - - - Page 7
Capital by Classification 2016-2019 Multi-Year 2016 2017 2018 2019 Total 2020-2025 2016-2025 Capital Plan Lifecycle Renewal Capital Lifecycle Renewal 85,855 73,228 73,240 78,860 311,182 513,732 824,914 Lifecycle Renewal Revised 85,855 74,297 73,846 79,906 313,903 529,975 843,878 Increase/(Decrease) - 1,069 606 1,046 2,721 16,243 18,964 Growth Capital Growth 118,973 115,948 171,007 122,342 528,270 356,583 884,853 Growth Revised 118,973 127,355 152,816 121,173 520,317 358,147 878,464 Increase/(Decrease) - 11,407 (18,191) (1,169) (7,953) 1,564 (6,389) Service Improvement Capital Service Improvement 16,123 18,533 16,967 17,140 68,763 176,252 245,015 Service Improvement Revised 16,123 14,183 23,247 15,805 69,358 178,064 247,422 Increase/(Decrease) - (4,350) 6,280 (1,335) 595 1,812 2,407 Total Capital Expense Increase/(Decrease) - 8,126 (11,305) (1,458) (4,637) 19,619 14,982 Page 8
Lifecycle Renewal Capital 2016-2019 Multi-Year 2016 2017 2018 2019 Total 2020-2025 2016-2025 Capital Plan Lifecycle Renewal 85,855 73,228 73,240 78,860 311,182 513,732 824,914 Lifecycle Renewal Revised 85,855 74,297 73,846 79,906 313,903 529,975 843,878 Increase/(Decrease) - 1,069 606 1,046 2,721 16,243 18,964 Sources of Financing Capital Levy (CL) - Debenture (D) 15,000 15,000 Reserve Fund (RF) 1,069 606 1,046 2,721 1,243 3,964 Other (O) - - - Non-tax Supported (NTS) - - Total Revenue 1,069 606 1,046 2,721 16,243 18,964 Tax Levy Impact - - - - - - 2016-2019 Multi-Year Amendments Amendment Case #8 Amendments Public Art Restoration Rationale: New project for lifecycle maintenance on public art. 95 145 169 409 1,014 1,423 Source of Financing: Public Art Maintenance Reserve Fund RF RF RF RF Amendment Case #9 Municipal Waste Study Rationale: Increase funding for environmental assessment on long term disposal. 1,000 200 500 1,700 1,700 Source of Financing: Sanitary Landfill Reserve Fund RF RF RF Amendment Case #10 Vehicle & Equipment Replacement Rationale: Increase funding for vehicle and equipment replacement due to increased replacement costs and program adjustments. 393 36 601 1,030 (1,038) (8) Source of Financing: Vehicle & Equipment Reserve Fund RF RF RF RF Page 9
Amendments Amendments Lifecycle Renewal Capital (cont'd) 2016-2019 Multi-Year 2016 2017 2018 2019 Total 2020-2025 2016-2025 Capital Plan Amendment Case #11 Other Lifecycle Renewal Amendments - Library Capital Plan (419) 225 126 (68) (820) (888) - Covent Garden Roof Replacement (350) (350) 350 - - Replace Firefighter Equipment (110) (110) Source of Financing: Reserve Fund, Other RF RF RF RF Total 2016-2019 Multi-Year Amendments (Incr/(Decr)) - 1,069 606 1,046 2,721 (604) 2,117 2020-2025 Amendments Amendment Case #12 Police Vehicles & Equipment (2020-2025) Rationale: Increase funding to replace Police vehicles and equipment. Police Equipment 1,308 1,308 Police Vehicles 540 540 Source of Financing: Police Vehicle & Equipment Reserve Fund RF Amendment Case #13 London Transit - Facility Demolition & Rebuild (2020-2025) Rationale: Funding to replace Highbury facility (estimated $45.6 15,000 15,000 million project, $15 million 2022-2025, $30.6 million beyond). Source of Financing: Debt D Total 2020-25 Amendments (Incr/(Decr)) - - - - - 16,848 16,848 Total Lifecycle Renewal Amendments (Incr/(Decr)) - 1,069 606 1,046 2,721 16,243 18,964 Page 10
Growth Capital 2016-2019 Multi-Year 2016 2017 2018 2019 Total 2020-2025 2016-2025 Capital Plan Growth 118,973 115,948 171,007 122,342 528,270 356,583 884,853 Growth Revised 118,973 127,355 152,816 121,173 520,317 358,147 878,464 Increase/(Decrease) - 11,407 (18,191) (1,169) (7,953) 1,564 (6,389) Sources of Financing Capital Levy (CL) - Debenture (D) 2,155 (3,314) (1,318) (2,476) 3,788 1,312 Reserve Fund (RF) - - Other (O) - - - Non-tax Supported (NTS) 9,252 (14,877) 148 (5,477) (2,224) (7,701) Total Revenue 11,407 (18,191) (1,169) (7,953) 1,564 (6,390) Tax Levy Impact - - - - - - Amendments Amendment Case #14 Northwest and Southeast Libraries Rationale: Defer Northwest from 2019 to 2020. (3,330) (3,330) 4,704 1,374 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 1,038 Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS Amendment Case #15 Multi-purpose Rec Centre Southeast Rationale: Increase funding to reflect recent higher tender results for facility projects. 240 261 244 745 745 Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS Page 11
Amendments Growth Capital (cont'd) 2016-2019 Multi-Year 2016 2017 2018 2019 Total 2020-2025 2016-2025 Capital Plan Amendment Case #16 Transportation Rationale: Revise select Transportation Growth projects - Total 11,167 (14,057) (588) (3,478) 1,188 (2,290) 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) - - 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) 3,083 - TS1633 Veterans Memorial Parkway - Advanced Land Acquisition (800) 800 (600) (600) (1,240) (1,840) Revise Funding: TS1629-1 Southdale Rd Widening - Farnham to Pine Valley 155 155 (155) - TS1358 Pack Rd Upgrades- Colonel Talbot to Bostwick 200 200 (200) - TS1041 Transportation Impact Study (50) (50) (50) (150) (300) (450) Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS D, NTS Amendment Case #17 Other Growth Amendments - New Fire Station #15 (deferred to 2020) (1,065) (1,863) (2,928) 3,886 958 - Additional funding for new spray pads (2020-2025) - 52 52 - Advanced/deferred funding transportation projects (2020-2025) - (8,265) (8,265) Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS Total Growth Amendments (Incr/(Decr)) - 11,407 (18,191) (1,169) (7,953) 1,564 (6,389) Page 12
Service Improvement Capital 2016-2019 Multi-Year 2016-2025 2020-2025 2016 2017 2018 2019 Total Capital Plan Service Improvement 16,123 18,533 16,967 17,140 68,763 176,252 245,015 Service Improvement Revised 16,123 14,183 23,247 15,805 69,358 178,064 247,422 Increase/(Decrease) - (4,350) 6,280 (1,335) 595 1,812 2,407 Sources of Financing Capital Levy (CL) - Debenture (D) (6,000) 5,880 (1,535) (1,655) 1,812 157 Reserve Fund (RF) 1,650 400 200 2,250 2,250 Other (O) - - - Non-tax Supported (NTS) - - - Total Revenue (4,350) 6,280 (1,335) 595 1,812 2,407 Tax Levy Impact - - - - - - Amendments Amendment Case #2 Carrying/Holding Costs on City Owned Properties Rationale: Repairs to buildings on Old Victoria Hospital site (War 1,000 1,000 1,000 Memorial and Old Medical School) after assumption from LHSC. Source of Financing: Land Acquisition Reserve Fund RF Amendment Case #18 Revision to Capital Project for Ontario Works Desk-Side Service Delivery Model Rationale: Funding for conversion to desk-side service for Core 250 250 250 and East Ontario Works offices. Source of Financing: Social Services Reserve Fund RF Amendment Case #19 Facility Energy Management Rationale: Increase funding for energy savings projects. 400 400 200 1,000 1,000 Source of Financing: Energy Management Reserve Fund RF RF RF Amendment Case #20 Other Service Improvement Amendments - Glen Cairn, Silverwoods and Farquharson Arenas 80 80 (1,290) (1,210) - Resources for Fire Station #16 (deferred 2019 to 2020) (200) (1,535) (1,735) 3,102 1,367 - Western Road & Philip Aziz (deferred from 2017 to 2018) (6,000) 6,000 - - Source of Financing: Debt D D D D Total Service Improvement Amendments (Incr/(Decr)) - (4,350) 6,280 (1,335) 595 1,812 2,407 Page 13
APPENDIX A OPERATING BUDGET OVERVIEW Page 14
2016-2019 OPERATING BUDGET OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) Operating 2016 2017 2018 2019 2016-2019 Average % Expense Expense Expense Expense Inc/(Dec) % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8% 1 841,017 536,434 866,294 552,073 890,863 567,915 909,350 584,314 Cumulative Amendment 1,258-1,323 65 1,489 331 Revised 2 841,017 536,434 867,552 552,073 892,186 567,980 910,839 584,645 Revised % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8% Notes: 1. Amounts reported in the 2016-2019 row include housekeeping budget adjustments. 2. Excludes 2017 assessment growth. BUDGET AMENDMENT OVERVIEW FOR PROPERTY TAX SUPPORTED 0% CITY OF LONDON SERVICES 7 Number of services with an operating budget amendment Number of services without an operating budget amendment Total # of Services 95 88 Page 15
SERVICE 2016-2019 OPERATING BUDGET OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) 2016-2019 1 2016 1 Annual Update 1 2016-2019 2017 2018 2019 Revised 2017-2019 Inc/(Dec) Culture Services 97,824 23,918 24,295 24,637 24,974 97,824 0 Economic Prosperity 47,575 11,836 11,877 11,921 11,941 47,575 0 Environmental Services 85,242 20,693 20,996 21,548 22,005 85,242 0 Parks, Recreation & Neighbourhood Services 131,890 31,875 32,872 33,357 33,786 131,890 0 Planning & Development Services 27,359 6,787 6,737 6,937 6,898 27,359 0 Protective Services 646,336 158,779 160,531 162,846 164,180 646,336 0 Social & Health Services 259,750 65,630 65,606 64,021 65,140 260,397 647 Transportation Services 263,524 64,006 65,106 66,549 67,863 263,524 0 Corporate, Operational & Council Services 229,864 56,066 57,980 58,111 57,707 229,864 0 Financial Management 451,373 96,844 106,074 118,051 130,153 451,122 (251) PROPERTY TAX LEVY SUPPORTED BUDGET 2,240,736 536,434 552,073 567,980 584,645 2,241,132 396 Subject to rounding. Notes: 1. Amounts reported include housekeeping budget adjustments. Page 16
SERVICE 2016-2019 OPERATING BUDGET OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) 2016-2019 1 2016 1 Annual Update 1 2016-2019 2017 2018 2019 Revised 2017-2019 Inc/(Dec) CULTURE SERVICES Centennial Hall 648 138 153 170 187 648 0 Arts, Culture & Heritage Advisory & Funding 8,847 2,171 2,212 2,217 2,247 8,847 0 Museum London 6,688 1,635 1,659 1,684 1,710 6,688 0 Eldon House 1,124 271 278 286 289 1,124 0 Heritage 772 185 190 197 200 772 0 London Public Library 79,745 19,518 19,803 20,083 20,341 79,745 0 TOTAL CULTURE SERVICES 97,824 23,918 24,295 24,637 24,974 97,824 0 ECONOMIC PROSPERITY Business Attraction & Retention 2 36,294 9,064 9,070 9,076 9,083 36,294 0 Community Improvement / BIA 934 227 232 237 238 934 0 London Convention Centre 2,387 589 598 600 600 2,387 0 Tourism London 7,961 1,956 1,978 2,008 2,020 7,961 0 Covent Garden Market 0 0 0 0 0 0 0 TOTAL ECONOMIC PROSPERITY 47,575 11,836 11,877 11,921 11,941 47,575 0 Subject to rounding. Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Amounts reported include budget amendment 6 - Community Economic Roadmap Implementation. This budget amendment is funded from the Economic Development Reserve Fund resulting in no impact to the tax levy. Page 17
SERVICE 2016-2019 OPERATING BUDGET OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) 2016-2019 1 2016 1 Annual Update 1 2016-2019 2017 2018 2019 Revised 2017-2019 Inc/(Dec) ENVIRONMENTAL SERVICES Kettle Creek Conservation Authority 1,938 436 467 500 535 1,938 0 Lower Thames Valley Conservation Authority 644 153 158 164 169 644 0 Upper Thames River Conservation Authority 2 11,972 2,926 2,970 3,015 3,060 11,972 0 Environmental Action Programs & Reporting 3,029 749 758 761 761 3,029 0 Garbage Recycling & Composting 67,659 16,427 16,642 17,109 17,481 67,659 0 TOTAL ENVIRONMENTAL SERVICES 85,242 20,693 20,996 21,548 22,005 85,242 0 PARKS, RECREATION & NEIGHBOURHOOD SERVICES Neighbourhood & Recreation Services 80,408 19,332 20,041 20,379 20,657 80,408 0 Parks & Urban Forestry 51,482 12,543 12,831 12,979 13,130 51,482 0 TOTAL PARKS, RECREATION & NEIGHBOURHOOD SERVICES 131,890 31,875 32,872 33,357 33,786 131,890 0 PLANNING & DEVELOPMENT SERVICES Building Approvals (3,444) (761) (933) (869) (880) (3,444) 0 Planning Services 14,016 3,405 3,486 3,559 3,566 14,016 0 Development Services 16,787 4,144 4,184 4,247 4,212 16,787 0 TOTAL PLANNING & DEVELOPMENT SERVICES 27,359 6,787 6,737 6,937 6,898 27,359 0 Subject to rounding. Notes: 1. Amounts reported include housekeeping budget adjustments. 2. amendment 4 - UTRCA Environmental Targets Strategic Plan was approved by Council. However, since Appendix A only reflects the net budgets approved from rates, the funding increase of $179 thousand per year is not included because the funding source is assessment growth. Page 18
SERVICE 2016-2019 OPERATING BUDGET OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) 2016-2019 1 2016 1 2017 Annual Update 1 2018 2019 2016-2019 Revised 2017-2019 Inc/(Dec) PROTECTIVE SERVICES Animal Services 7,048 1,708 1,740 1,781 1,819 7,048 0 By-Law Enforcement & Property Standards 5,065 1,224 1,259 1,300 1,282 5,065 0 Corporate Security & Emergency Management 7,552 1,847 1,876 1,905 1,925 7,552 0 Fire Services 226,869 56,034 56,521 57,012 57,301 226,869 0 London Police Services 399,803 97,966 99,135 100,849 101,853 399,803 0 TOTAL PROTECTIVE SERVICES 646,336 158,779 160,531 162,846 164,180 646,336 0 Subject to rounding. Notes: 1. Amounts reported include housekeeping budget adjustments. Page 19
2016-2019 OPERATING BUDGET OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) SOCIAL & HEALTH SERVICES Housing Services 46,694 11,828 11,768 11,586 11,511 46,694 0 Housing Development Corporation 2&3 1,587 550 480 276 282 1,587 0 London & Middlesex Housing Corporation 4 38,433 8,992 9,422 9,865 10,351 38,629 196 Long Term Care 20,332 5,013 5,032 5,104 5,184 20,332 0 Land Ambulance 57,311 13,219 14,412 14,728 14,951 57,311 0 Middlesex-London Health Unit 24,380 6,095 6,095 6,095 6,095 24,380 0 Social & Community Support Services 5 71,013 19,935 18,397 16,366 16,766 71,464 451 TOTAL SOCIAL & HEALTH SERVICES 259,750 65,630 65,606 64,021 65,140 260,397 647 Subject to rounding. Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Amounts reported exclude the impacts of budget amendment 7 - HDC Additional Investment in Affordable Housing Development since this budget amendment was referred to the 2016 year-end surplus discussion. 3. Amounts reported exclude the annual contribution to the HDC Reserve Fund of $2 million; the annual reserve fund contribution is budgeted under Financial Management, Contribution to Capital Reserve Funds. 4. Amounts reported include the impacts of budget amendment 5 - LMHC Building Maintenance and Tenant Services. From 2017-2019, $258 thousand will be drawn down from the Social Housing Major Repairs Reserve Fund with the balance of $65 thousand in 2018 and $66 thousand in 2019 funded from an increase in tax levy. 5. Amounts reported include the impacts of budget amendment 21 - Free Transit For Children Ages 5-12 of $150 thousand per year beginning in 2017. Funding for this budget amendment is from savings identified in existing corporate budgets. Page 20
SERVICE 2016-2019 OPERATING BUDGET OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) 2016-2019 1 2016 1 Annual Update 1 2016-2019 2017 2018 2019 Revised 2017-2019 Inc/(Dec) TRANSPORTATION SERVICES Parking (12,852) (3,322) (3,248) (3,170) (3,113) (12,852) 0 Public Transit (LTC) 118,962 28,962 29,333 30,092 30,575 118,962 0 Roadways 157,414 38,366 39,020 39,627 40,401 157,414 0 TOTAL TRANSPORTATION SERVICES 263,524 64,006 65,106 66,549 67,863 263,524 0 CORPORATE, OPERATIONAL & COUNCIL SERVICES Corporate Services 211,315 50,449 52,477 53,909 54,479 211,315 0 Corporate Planning & Administration 1,826 2,007 1,220 (204) (1,197) 1,826 0 Council Services 13,535 3,367 3,378 3,391 3,399 13,535 0 Public Support Services 3,187 243 904 1,014 1,025 3,187 0 TOTAL CORPORATE, OPERATIONAL & COUNCIL SERVICES 229,864 56,066 57,980 58,111 57,707 229,864 0 Subject to rounding. Notes: 1. Amounts reported include housekeeping budget adjustments. Page 21
SERVICE 2016-2019 OPERATING BUDGET OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) 2016-2019 1 2016 1 Annual Update 1 2016-2019 2017 2018 2019 Revised FINANCIAL MANAGEMENT Corporate Financing Capital Financing Capital Levy 162,879 37,271 39,266 41,946 44,396 162,879 0 Debt Servicing 2 155,050 37,575 37,705 38,706 40,165 154,150 (900) Contribution to Capital Reserve Funds 3&5 93,440 20,807 22,744 24,944 26,144 94,640 1,200 Other Related Financing Contingencies 6 100,234 16,948 22,414 27,179 33,242 99,783 (451) Other Corporate Revenues & Expenditures 3&4 (82,954) (21,572) (21,678) (20,381) (19,422) (83,054) (100) Finance 22,723 5,816 5,623 5,657 5,628 22,723 0 TOTAL FINANCIAL MANAGEMENT 451,373 96,844 106,074 118,051 130,153 451,122 (251) Subject to rounding. Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Amounts reported include the impacts of budget amendment 3 - Updated Debt Servicing. 3. Amounts reported include the impacts of budget amendment 2 - Carrying/Holding Costs on City Owned Properties. 2017-2019 Inc/(Dec) 4. Amounts reported include the impacts of budget amendment 1 - Energy Prices New Cap and Trade Program. From 2017-2019, $800 thousand will be drawn down from the Operating Contingency Reserve with $100 thousand in 2019 funded from an increase in tax levy. 5. Amounts reported include the annual contribution to the HDC Reserve Fund of $2 million. 6. Amounts reported include the savings identified in existing corporate budgets as funding for budget amendment 21 - Free Transit For Children Ages 5-12 of $150 thousand per year beginning in 2017. Page 22
APPENDIX B STAFFING CHANGES OVERVIEW Page 23
Amendments 2016-2019 STAFFING CHANGES OVERVIEW 2017 ANNUAL BUDGET UPDATE (AS APPROVED) Full-Time Employees (FT) Full-Time Equivalents (FTE) Staffing Changes 2016 2017 2018 2019 2016 2017 2018 2019 Total Staffing 1 3,682 3,698 3,703 3,710 4,997.3 5,014.7 5,023.4 5,024.9 Amendment 9 - Municipal Waste Study Rationale: On October 13, 2015, Municipal Council directed staff to proceed with an Individual Environmental Assessment (EA) to develop long-term solid waste resource recovery and disposal plans for the City of London. This FTE will provide the necessary staffing resources to complete the individual EA. - - - 0.6 0.6 0.3 Amendment 4 -Upper Thames River Conservation Authority (UTRCA) Rationale: These positions are required to fulfill the newly adopted UTRCA Environmental Targets Strategic Plan. 1 1 1 1.0 1.0 1.0 Corporate Services - Information Technology Services (ITS) Rationale: This staffing change proposes to convert a two year temporary position in ITS to permanent with no budgetary impact. In association with Neighbourhood, Children and Fire Services (NCFS), this position would initially provide essential technical, project management and business analysis services to facilitate the modernization of key technological elements of the NCFS portfolio. 1 1 1 1.0 1.0 1.0 Cumulative Amendment - 2 2 2-2.6 2.6 2.3 Total Revised Staffing 3,682 3,700 3,705 3,712 4,997.3 5,017.3 5,026.0 5,027.2 Incremental Increase / (Decrease) 2 2 - - 2.6 - (0.3) Note 1: Total Staffing numbers include positions approved as part of the 2016-2019 multi-year budget, 2016 approved Assessment Growth business cases and housekeeping budget adjustments. Note 2: Represents the incremental staffing changes related to the remaining years of the multi-year budget (i.e. 2017-2019). Page 24
APPENDIX C CAPITAL BUDGET OVERVIEW Page 25
CAPITAL BUDGET BY CLASSIFICATION Classification 2016-2019 CAPITAL BUDGET OVERVIEW WITH FORECAST FOR 2020-2025 2017 ANNUAL BUDGET UPDATE (AS RECOMMENDED) 2016 1 Annual Update 2017-2019 Revised 2017 2018 2019 2016-2019 Increase/ (Decrease) 2020-2025 Revised Forecast 2020-2025 Increase/ (Decrease) Total Revised Ten Year Plan Lifecycle Renewal 85,855 74,297 73,846 79,906 313,904 2,721 529,976 16,243 843,880 Growth 118,973 127,355 152,816 121,172 520,316 (7,953) 358,147 1,564 878,463 Service Improvement 16,123 14,183 23,247 15,805 69,358 595 178,065 1,812 247,423 Total Expenditures 220,951 215,835 249,909 216,883 903,578 (4,637) 1,066,188 19,619 1,969,766 CAPITAL BUDGET BY TANGIBLE & NON-TANGIBLE CAPITAL ASSETS 2016 1 Annual Update 2017-2019 Revised 2017 2018 2019 2016-2019 Increase/ (Decrease) Tangible Capital Asset 215,770 210,339 246,038 212,403 884,551 (6,337) 1,055,031 19,356 1,939,582 Non-Tangible Capital Asset 2 5,181 5,496 3,871 4,480 19,027 1,700 11,157 263 30,184 Total Expenditures 220,951 215,835 249,909 216,883 903,578 (4,637) 1,066,188 19,619 1,969,766 Note: Amounts reported include adjustments for budget amendments 2, and 8 20. 2020-2025 Revised Forecast 2020-2025 Increase/ (Decrease) Total Revised Ten Year Plan 1) Amounts reported in the 2016 columns include housekeeping budget adjustments. 2) Non-TCA projects could be classified as lifecycle, growth or service improvement. Non-TCA are expenditures that will not result in the creation of a tangible asset (having physical substance). It should be noted that the Non-TCA summary only includes projects that are 100% Non- TCA. Page 26
CAPITAL BUDGET BY SERVICE PROGRAM Service Program 2016-2019 CAPITAL BUDGET OVERVIEW WITH FORECAST FOR 2020-2025 2017 ANNUAL BUDGET UPDATE (AS RECOMMENDED) 2016 1 Annual Update 2017-2019 Revised 2017 2018 2019 2016-2019 Increase/ (Decrease) 2020-2025 Revised Forecast 2020-2025 Increase/ (Decrease) Total Revised Ten Year Plan Culture Services 4,692 2,503 2,137 6,540 15,872 (1,951) 16,430 4,898 32,302 Economic Prosperity 7,046 6,704 10,996 6,421 31,167 650 53,949 350 85,116 Environmental Services 5,718 2,415 915 4,755 13,803 1,700 64,730-78,533 Parks, Recreation & Neighbourhood Services Planning & Development Services 41,488 21,912 28,381 23,351 115,132 825 94,998 (1,238) 210,130 2,073 1,558 125 375 4,131-4,125-8,256 Protective Services 8,919 4,386 5,387 5,469 24,161 (4,663) 97,221 8,726 121,382 Social & Health Services 2,608 4,058 2,958 3,258 12,882 250 22,098-34,980 Transportation Services 135,790 161,491 188,816 155,379 641,476 (3,478) 640,156 7,921 1,281,632 Corporate, Operational & Council Services 12,617 10,808 10,194 11,335 44,954 2,030 72,481 (1,038) 117,435 Total Expenditures 220,951 215,835 249,909 216,883 903,578 (4,637) 1,066,188 19,619 1,969,766 1) Amounts reported in the 2016 columns include housekeeping budget adjustments. Note: Amounts reported include adjustments for budget amendments 2, and 8 20. Page 27
CAPITAL BUDGET BY SOURCE OF FINANCING Tax Supported 2016-2019 CAPITAL BUDGET OVERVIEW WITH FORECAST FOR 2020-2025 2017 ANNUAL BUDGET UPDATE (AS RECOMMENDED) 2016 1 2017 Annual Update 2018 2019 Revised 2016-2019 2017-2019 Increase/ (Decrease) 2020-2025 Revised Forecast 2020-2025 Increase/ (Decrease) Total Revised Ten Year Plan Capital Levy 34,798 37,011 39,691 42,141 153,640-297,532-451,173 Debenture 2 33,933 27,404 36,807 29,180 127,324 (4,131) 129,153 20,600 256,477 Reserve Fund 31,302 22,852 24,708 26,195 105,057 4,971 192,973 1,244 298,030 Other 3 1,447 1,500 250-3,197 - - - 3,197 Sub-total Tax Supported 101,480 88,767 101,456 97,516 389,219 840 619,658 21,843 1,008,877 Non-Tax Supported Debenture 22,023 39,838 26,475 27,736 116,072-109,994 (5,136) 226,066 Reserve Fund 34,282 32,464 35,423 37,290 139,459 (5,477) 152,293 2,912 291,751 Federal Gas Tax 15,360 13,215 12,585 17,175 58,335-110,904-169,239 Provincial Grants 1,995 2,805 1,885 1,935 8,620-15,102-23,722 Senior Government 34,739 37,395 71,974 35,167 179,276-57,797-237,073 Other 11,072 1,351 110 65 12,598-440 13,038 Sub-total Non-Tax Supported 119,471 127,068 148,453 119,368 514,360 (5,477) 446,530 (2,224) 960,890 Total Sources of Financing 220,951 215,835 249,909 216,883 903,577 (4,637) 1,066,188 19,619 1,969,765 1) Amounts reported in the 2016 columns include housekeeping budget adjustments. 2) The 2016 to 2025 capital plan calls for an average debt cap limit of $26.0 million. 3) 2016 other rate supported funding includes unallocated capital levy and reserve funding. Note: Amounts reported include adjustments for budget amendments 2, and 8 20. Page 28
APPENDIX D RESERVES & RESERVE FUNDS OVERVIEW Page 29
2016-2019 RESERVES & RESERVE FUNDS OVERVIEW 2017 ANNUAL BUDGET UPDATE Reserves & Reserve Funds Plan Forecast 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Current Projected Balance - City-Owned Reserve Fund Categories (excl. Obligatory Reserve Funds) Capital Asset Renewal & Replacement 59,940 69,092 75,125 84,586 82,090 96,101 103,502 104,789 108,782 120,448 Capital Asset Growth 8,775 10,031 11,413 10,815 11,465 12,488 11,912 12,790 14,877 16,598 Specific Projects and New Initiatives 110,984 114,673 115,887 115,074 122,905 133,550 144,690 157,289 167,547 180,380 Contingencies/Stabilization & Risk Management 92,529 93,448 93,099 94,953 95,814 98,761 102,189 103,154 106,680 110,823 Total City-Owned 272,228 287,245 295,523 305,427 312,273 340,901 362,293 378,023 397,887 428,249 Amendments Capital Asset Renewal & Replacement Amendment Case #5 Social Housing Major Repairs Reserve Fund Rationale: LMHC - Building Maintenance and Tenant Services Funding for building repairs to maintain existing service levels within LMHC. Amendment Case #8 Public Art Maintenance Reserve Fund Rationale: Lifecycle Renewal Capital - Public Art Restoration New project for lifecycle maintenance on public art. Amendment Case #9 Sanitary Landfill Reserve Fund Rationale: Lifecycle Renewal Capital Municipal Waste Study Increase in funding for an individual Environmental Assessment to develop long term solid waste resource recovery and disposal plans. Amendment Case #10 Vehicle & Equipment Reserve Fund Rationale: Lifecycle Renewal Capital Vehicle & Equipment Repl. Increase funding for vehicle and equipment replacement due to cost and program adjustments. Current Projected Balance 59,940 69,092 75,125 84,586 82,090 96,101 103,502 104,789 108,782 120,448 (258) (258) (258) - - - - - - (95) (145) (169) (169) (169) (169) (169) (169) (169) (1,000) (200) (500) (393) (36) (601) 221 417 477 (1,696) 886 733 Page 30
2016-2019 RESERVES & RESERVE FUNDS OVERVIEW 2017 ANNUAL BUDGET UPDATE Reserves & Reserve Funds Plan Forecast 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Capital Asset Renewal & Replacement (continued) Amendment Case #11 Other Capital Asset Renewal & Replacement Revisions Library Reserve Fund - Library Capital Plan 419 (225) (126) 175 175 125 125 220 - Replace Firefighter Equipment - (399) 73 279 (21) (41) Amendments Amendment Case #12 Police Vehicle & Equipment Reserve Fund Rationale: Lifecycle Renewal Capital Police Vehicle & Equipment Increase funding to replace Police vehicles and equipment. Amendment Case #19 Energy Management Reserve Fund Rationale: Service Improvement Capital Facility Energy Management Increase funding for energy savings projects. (400) (400) (200) 288 361 430 589 90 90 Revised Projected Balance 61,956 69,382 75,879 84,751 84,625 98,508 106,459 105,940 111,813 123,086 Capital Asset Growth No applicable budget amendments Current Projected Balance 8,775 10,031 11,413 10,815 11,465 12,488 11,912 12,790 14,877 16,598 Revised Projected Balance 8,775 10,031 11,413 10,815 11,465 12,488 11,912 12,790 14,877 16,598 Page 31
2016-2019 RESERVES & RESERVE FUNDS OVERVIEW 2017 ANNUAL BUDGET UPDATE Reserves & Reserve Funds Plan Forecast 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Amendments Specific Projects and New Initiatives Current Projected Balance 110,984 114,673 115,887 115,074 122,905 133,550 144,690 157,289 167,547 180,380 Amendment Case #2 Land Acquisition Reserve Fund Rationale: Operating - Contribution to reserve fund for carrying costs. 400 400 400 400 400 400 400 400 400 Drawdown from reserve fund for annual carrying costs. 1 (400) (400) (400) (400) (400) (400) (400) (400) (400) Service Improvement Capital Corporate Carrying Costs Repairs to buildings on Old Victoria Hospital site (War Memorial and (1,000) Old Medical School) after assumption from LHSC. Amendment Case #6 Economic Development Reserve Fund Rationale: Community Economic Roadmap Implementation An (100) (100) (100) (100) investment of $150 thousand per year is requested from 2017 to 2020 to be funded from the Economic Develoment Reserve Fund. Amendment Case #18 Social Services Reserve Fund Rationale: Service Improvement Capital Revision to Capital Project for (250) Ontario Works Desk-Side Service Delivery Model - Funding for conversion to deskside service for Core and East Ontario Works offices. Revised Projected Balance 110,984 113,323 115,787 114,974 122,805 133,550 144,690 157,289 167,547 180,380 (1) The by-law for the Land Acquisition Reserve Fund will need to be changed to allow the funds to be used for this purpose. Page 32
Amendments Contingencies/Stabilization & Risk Management 1 2016-2019 RESERVES & RESERVE FUNDS OVERVIEW 2017 ANNUAL BUDGET UPDATE Reserves & Reserve Funds Plan Forecast 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Current Projected Balance 92,529 93,448 93,099 94,953 95,814 98,761 102,189 103,154 106,680 110,823 Other Adjustment Operating Contingency Reserve Rationale: Contribution to Operating Contingency Reserve for 2,100 2,450 1,900 2016 to 2018 after realignment of contingency budget. Amendment Case #1 Operating Contingency Reserve Rationale: Energy Prices - New Cap & Trade Program Strategic use of the Operating Contingency Reserve to mitigate the (800) (800) (800) impact of the new Cap & Trade program. Requires an investment of $800 thousand in 2017, 2018 and 2019. Amendment Case #2 Operating Contingency Reserve Rationale: Carrying/Holding Costs on City Owned Properties Strategic use of the Operating Contingency Reserve to mitigate the (100) (100) impact of carrying/holding costs on City owned properties. Requires an investment of $100 thousand in 2017 and 2018. Revised Projected Balance 94,629 94,998 94,099 94,153 95,814 98,761 102,189 103,154 106,680 110,823 (1) The contribution to the Housing Development Corporation ("For Consideration" - Amendment 7) is not included in this balance. Page 33
2016-2019 RESERVES & RESERVE FUNDS OVERVIEW 2017 ANNUAL BUDGET UPDATE Reserves & Reserve Funds Plan Forecast Revised Projected Balance - City-Owned Reserve Fund Categories (excl. Obligatory Reserve Funds) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Capital Asset Renewal & Replacement 61,956 69,382 75,879 84,751 84,625 98,508 106,459 105,940 111,813 123,086 Capital Asset Growth 8,775 10,031 11,413 10,815 11,465 12,488 11,912 12,790 14,877 16,598 Specific Projects and New Initiatives 110,984 113,323 115,787 114,974 122,805 133,550 144,690 157,289 167,547 180,380 Contingencies/Stabilization & Risk Management 94,629 94,998 94,099 94,153 95,814 98,761 102,189 103,154 106,680 110,823 Total City-Owned 276,344 287,735 297,177 304,692 314,708 343,308 365,250 379,174 400,917 430,887 Change in Projected Balance (Revised Balance minus Current Balance) Capital Asset Renewal & Replacement 2,016 290 754 165 2,535 2,407 2,958 1,151 3,030 2,638 Capital Asset Growth - - - - - - - - - - Specific Projects and New Initiatives - (1,350) (100) (100) (100) - - - - - Contingencies/Stabilization & Risk Management 2,100 1,550 1,000 (800) - - - - - - Total City-Owned 4,116 490 1,654 (735) 2,435 2,407 2,958 1,151 3,030 2,638 Page 34
APPENDIX E DEBT OVERVIEW Page 35
Amendments Debt Servicing Expenditures 2016-2019 DEBT OVERVIEW 2017 ANNUAL BUDGET UPDATE 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 37,575 38,005 39,006 40,465 41,487 42,266 43,084 43,337 43,337 43,337 Refer to Amendment 3 - (300) (300) (300) (300) (300) (300) (300) (300) (300) Updated Debt Servicing Total Amendments (300) (300) (300) (300) (300) (300) (300) (300) (300) Revised 37,575 37,705 38,706 40,165 41,187 41,966 42,784 43,037 43,037 43,037 Revised - Other Corporate 2 25,375 26,466 27,660 32,280 37,380 38,314 40,709 41,794 45,356 44,934 Revised - Total Corporate 62,950 64,171 66,366 72,445 78,567 80,280 83,493 84,831 88,393 87,971 Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Other Corporate includes Wastewater, Water and Reserve Fund Supported s. Potential Debt Levels (Issued + Authorized) Forecast Forecast 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Revised 1 270,673 266,947 271,156 266,746 261,424 234,489 208,881 199,245 182,901 172,019 Revised - Other Corporate 2 304,992 332,928 347,786 352,439 349,266 336,413 318,779 313,240 308,486 327,010 Revised - Total Corporate 575,665 599,875 618,942 619,185 610,690 570,902 527,660 512,485 491,387 499,029 Notes: 1. Amounts reported include housekeeping budget adjustments. 2. Other Corporate includes Wastewater, Water and Reserve Fund Supported s. Page 36
2017 Annual Update Council December 6, 2016