Open Council

20TH REPORT OF THE (2018 BUDGET UPDATE)

Open Council

20TH REPORT OF THE (2018 BUDGET UPDATE)

November 27, 2017, at 1:04 PM

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1.   Disclosures of

Pecuniary Interest

That it BE NOTED that the following pecuniary interests were disclosed:   a)            Councillor A. Hopkins disclosed a pecuniary interest in clause 6 of this Report, specifically as it relates to Case #7 - Proposed Minimum Wage Increases and Case #8 – Confidential Matter, by indicating that her son is employed by the City of London.   b)            Councillor P. Hubert disclosed a pecuniary interest in clause 6 of this Report, specifically as it relates to Case #6 – Increased Ontario Works Administration Subsidy, by indicating that he is the Executive Director of a social services agency with a Purchase of Service Agreement with Ontario Works.   c)            Councillor S. Turner disclosed a pecuniary interest in clause 6 of this report, specifically as it relates to Case #7 - Proposed Minimum Wage Increases and Case #8 – Confidential Matter, by indicating that he supervises CUPE Local 101 staff at the Middlesex-London Health Unit.  Councillor S. Turner further discloses a pecuniary interest in any matters pertaining to the Middlesex-London Health Unit or Childreach, as he is employed by the Middlesex-London Health Unit and his spouse is employed by Childreach.

2.   London Children’s

Museum Capital Funding Request

That, on the recommendation of the Managing Director, Neighbourhood, Children and Fire Services, with the concurrence of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, the staff report dated November 27, 2017, regarding the London Children’s Museum capital funding request, BE RECEIVED for information.

Motion Passed

Motion Passed

3.   2018 Annual Budget

Update - Public Engagement

That, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, the staff report dated November 27, 2017, regarding public engagement for the 2018 Multi-Year Budget Update, BE RECEIVED for information.

Motion Passed

Motion Passed

4.   Strategic

Investment Update and Other Options to Reduce Budget Pressures

That, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, the following actions be taken:   a)         the status of the Municipal Council approved strategic investments BE RECEIVED for information; it being noted that the Civic Administration is not recommending the deferral of any strategic investment; and   b)         notwithstanding the Assessment Growth Policy, $1,538,429 which represents the estimated assessment growth revenue in excess of costs to service growth BE ALLOCATED to reduce the tax levy in 2018; it being noted that the tax levy from rates in 2018 would be reduced from 3.3% to 3.0% and the 2016-2019 average annual tax levy from rates would be reduced from 3.0% to 2.9%.

Motion to Approve that, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, the following actions be taken:   a)         the status of the Municipal Council approved strategic investments BE RECEIVED for information; it being noted that the Civic Administration is not recommending the deferral of any strategic investment; and

Motion Passed

Motion Passed

Motion to Approve:   b)         notwithstanding the Assessment Growth Policy, $1,538,429 which represents the estimated assessment growth revenue in excess of costs to service growth BE ALLOCATED to reduce the tax levy in 2018; it being noted that the tax levy from rates in 2018 would be reduced from 3.3% to 3.0% and the 2016-2019 average annual tax levy from rates would be reduced from 3.0% to 2.9%.

Motion Passed

Motion Passed

Motion to Approve the deferral of Strategic Investment Case #20 - London’s Downtown Plan - Small Scale Projects, to a future budget.

Motion Failed

Motion Failed

5.   Budget Overview

That the attached budget presentation from the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer BE RECEIVED.

Motion Passed

Motion Passed

6.   CORPORATE OPERATING

AND CAPITAL BUDGETS (rounded to the closest $1,000)

i)             That the following Multi-Year Budget adjustments to the Operating Budget resulting from new Council direction and cost/revenue drivers impacting the municipality BE APPROVED; it being noted that the 2016-2019 average annual tax levy increase would remain at 2.8%:   A)        London Music Industry Development Office             (Case #1):             $0 Net (2018)             $0 Net (2019)   B)        Councillors’ Annual Compensation (Case #2):             $0 Net (2018)             $245,000 Net (2019)   C)        Upper Thames River Conservation Authority (UTRCA) 10 Year Environmental Targets Strategic Plan       (Case #3):        $182,000 Net (2018)             $390,000 Net (2019)   D)        Dundas Place – Ongoing Place Management             (Case #4)             $0 Net (2018)             $375,000 Net (2019)   E)        Elimination of the Annual Payment to the Stiller Centre             (Case #5)             ($224,000) Net (2018)             ($228,000) Net (2019)   F)         Increased Ontario Works Administration Subsidy             (Case #6)             ($600,000) Net (2018)             ($600,000) Net (2019)

ii)             That the following Multi-Year Budget adjustments impacting the Operating Budget, arising from regulatory changes and a corporate “in camera” matter BE APPROVED; it being noted that the 2016-2019 average annual tax levy increase would rise from 2.8% to 3.0%:   A)        Proposed Minimum Wage Increases             (Case #7):             $1,203,000 Net (2018)             $1,724,000 Net (2019)   B)        Confidential Matter – A matter pertaining to labour relations and employee negotiations, advice or recommendations of officers and employees of the Corporation including communications necessary for that purpose, and for the purpose of providing instructions and directions to officers and employees of the Corporation (Case #8):                         $1,455,000 Net (2018)             $2,485,000 Net (2019).

iii)            That the following Multi-Year Budget adjustment to the Operating Budget resulting from a new Council direction, BE APPROVED; it being noted that the proposed Source of Financing would have no impact on the 2016-2019 average annual tax levy:   A)   Reduced Rate Transit Pass for Youth (Ages 13-17) - Amendment 3A: Bulk Purchase and re-sale of bus passes at $52.00/month Pilot Project             (Case #20).

iv)           That the estimated savings from the phasing out of the vacancy tax rebate of $895,000 in 2018 and $915,000 in 2019 (incremental) be applied to reduce the tax levy, subject to Council approval of the changes to the vacancy tax rebate program; it being noted that changes to funding for existing and new incentive programs, if directed by Council, may come forward as a business case in the 2019 Multi-Year Budget Update or the 2020-2023 Multi-Year Budget.

Motion to Approve Case #1 – London Music Industry Development Office

Motion Passed

Motion Passed

Motion to Approve Case #2 – Councillors’ Annual Compensation

Motion Passed

Motion Passed

Motion to Approve Case #3 – Upper Thames River Conservation Authority 10 Year Environmental Targets Strategic Plan

Motion Passed

Motion Passed

Motion to Approve Case #4 – Dundas Place – Ongoing Place Management

Motion Passed

Motion Passed

Motion to Approve a reduction in the 2019 Budget allocation for Case #4 – Dundas Place – Ongoing Place Management, in order to reduce the security allocation by $75,000.

Motion Failed

Motion Failed

Motion to Approve a reduction in the 2019 Budget allocation for Case #4 – Dundas Place – Ongoing Place Management, in order to allocate $0 to maintenance.

Motion Failed

Motion Failed

Motion to Approve Case #5 – Elimination of the Annual Payment to the Stiller Centre

Motion Passed

Motion Passed

Motion to Approve Case #6 – Increased Ontario Works Administration Subsidy

Motion Passed

Motion Passed

Motion to Approve Case #7 – Proposed Minimum Wage Increases (reflecting the UTRCA adjustment)

Motion Passed

Motion Passed

Motion to Approve Case #8 – Confidential Matter – A matter pertaining to labour relations and employee negotiations, advice or recommendations of officers and employees of the Corporation including communications necessary for that purpose, and for the purpose of providing instructions and directions to officers and employees of the Corporation

Motion Passed

Motion Passed

Motion to Approve Case #20 – Reduced Rate Transit Pass for Youth (Ages 13-17) - Amendment 3A: Bulk Purchase and re-sale of bus passes at $52.00/month Pilot Project.

Motion Passed

Motion Passed

Motion to Approve a new part 6) a) iv)  as follows:   That the estimated savings from the phasing out of the vacancy tax rebate of $895,000 in 2018 and $915,000 in 2019 (incremental) be applied to reduce the tax levy, subject to Council approval of the changes to the vacancy tax rebate program; it being noted that changes to funding for existing and new incentive programs, if directed by Council, may come forward as a business case in the 2019 Multi-Year Budget update or the 2020-2023 Multi-Year Budget.

Motion Passed

Motion Passed

i)              That the following 2018-2019 Multi-Year Budget adjustments to the Capital Budget BE APPROVED and the associated 2020-2025 forecast period adjustments, where applicable, BE APPROVED in principle; it being noted that financing can be accommodated within the Capital Plan without impacting the tax levy:   LIFECYCLE RENEWAL (Page 5):   A)        Invasive Species Management Strategy             (Case #9):             $350,000 (2018)             $350,000 (2019)             B)        London Police Service – Capital Plan Changes             (Case #10):             $77,000 (2018)             $80,000 (2019)             $574,000 (2020-2025)   C)        Exterior Lighting Redesign & Replacement for all London & Middlesex Housing Corporation (LMHC) Sites             (Case #11):             $500,000 (2018)             $500,000 (2019).   GROWTH (Page 6):   A)        Realignment of Growth Parks Projects             (Case #12)             ($1,617,000) (2018)             $807,000 (2019)             $810,000 (2020-2025)             B)        Deferral of New Fire Station 15             (Case #13)             ($200,000) (2019)             $611,000 (2020-2025)   C)        Adelaide Street/CPR Grade Separation             (Case #14)             $7,100,000 (2018)             $12,800,000 (2019)             $40,000,000 (2020-2025)   D)        Western Road Widening – Platts Lane to Oxford Street             (Case #15)             $3,500,000 (2018)   E)        Realignment of Growth Transportation Projects (Case #16)             ($11,623,000) (2018)             $4,215,000 (2019)             $7,408,000 (2020-2025).             SERVICE IMPROVEMENT (Page 7):   A)        Dundas Place Field House (Case #4)             $280,000 (2019)   B)        Farquharson, Glen Cairn & Silverwoods Arenas Decommissioning (Case #17)             $54,000 (2018)             $126,000 (2020-2025)   C)        Relocation of Existing Resources to New Fire Station 16             (Case #18)             ($500,000) (2018)             $300,000 (2019)             $597,000 (2020-2025)   D)        Western Rd. & Philip Aziz Ave. Improvements Deferred             (Case #19)             ($6,000,000) (2018)             $6,000,000 (2020-2025).   ii)         That the following Capital Budget adjustments only impacting the 2020-2025 Capital Budget Forecast BE APPROVED in principle:   A)        Northwest Branch Library Update $1,232,000             B)        London Convention Centre Capital Projects Realigning $20,000   C)        Additional Funding for New Spray Pads             $306,000   D)        Replacement & Relocation of Fire Training Tower             $0   E)        Parking Technology System $500,000   F)         Realignment of  Growth Transportation Projects Only Impacting 2020-2025             $0   G)        Vehicle and Equipment Replacements             $1,089,000.

Motion Passed

Motion Passed

i)              That the reconciliation of the tabled Budget with the Public Sector Accounting Board financial statement budget BE RECEIVED for information. (Appendix F, Page 51)   ii)             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 29):   A)        the revised 2018 tax levy BE ADOPTED in the gross amount of $920,361,272 and in the net amount of $579,532,227 after recognizing $7,063,000 of increased taxation from assessment growth; and   B)        the revised 2019 forecasted tax levy BE ADOPTED in the gross amount of $940,096,979 and in the net amount of $597,656,613.

iii)            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 40):   A)        the revised 2018 Capital Budget BE ADOPTED in the amount of $159,336,000;   B)        the revised 2019 Capital Budget BE ADOPTED in the amount of $192,232,000;   C)        the revised 2020-2025 Capital Forecast BE APPROVED in principle, in the gross amount of $1,373,619,000.   iv)           That the Reserves and Reserve Funds Overview BE APPROVED; it being noted projections are subject to annual review and adjustment (Appendix D, Page 47).   v)            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 meeting on December 12, 2017.   vi)           That the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer and the City Clerk BE INSTRUCTED to prepare the 2018 Tax Levy By-law for introduction and enactment by the Municipal Council at the appropriate time.

Motion Passed

Motion Passed

Motion Passed

Motion Passed

Motion Passed

Motion Passed

7.   WATER AND

WASTEWATER & TREATMENT BUDGETS (rounded to the closest $1,000)

i)              That the following 2018-2019 Multi-Year Budget adjustments to the Water Capital Budget BE APPROVED and the associated 2020-2025 forecast period adjustments, where applicable, BE APPROVED in principle; it being noted that financing can be accommodated within the Capital Plan without impacting the water rates:         Lifecycle Renewal (Page 1)   A)        EW3708 – Trunk Watermain Valve Chambers             ($500,000) (2018)             ($700,000) (2019)             $1,015,000 (2020-2025)   B)        EW3674 – Wharncliffe Road Watermain Replacement (Case #2)             $0 (2018)             ($1,242,000) (2019)             $1,242,000 (2020-2025)   Growth (Page 1)   A)        EW3658 – Westmount Pumping Station to Viscount Road High Level Water Reinforcement (Case #3)             $65,000 (2018)             ($1,213,000) (2019)             $1,148,000 (2020-2025)   B)        EW3692 – Medway-Wonderland Road Trunk Watermains (Case #4)             ($1,103,000) (2018)             ($9,928,000) (2019)             $11,031,000 (2020-2025)   C)        EW3675

  • Summercrest Southdale High Level (Case #5)                       ($1,131,000) (2018)                         $1,131,000 (2019).

ii)             That the following Water Capital Budget adjustments only impacting the 2020-2025 Capital Budget Forecast BE APPROVED in principle; it being noted that the changes to the Forecast:   A)        EW3583 – Springbank Reservoir 1 & 3 Protective Membrane Replacement $500,000   B)        EW1627 – Meter Replacement Program – Annual Program ($4,800,000).

b)            That the reconciliation of the tabled Water Budget to the Public Sector Accounting Board financial statement budget BE RECEIVED for information.

c)            That, in accordance with section 291(4)(c) of the Municipal Act, 2001, as amended, the Water Operating Budget reflecting annual rate increases of 3% for the 2018-2019 period BE READOPTED with no net change.

d)            That, in accordance with section 291(4)(c) of the Municipal Act, 2001, as amended, the following actions be taken with respect to the Water Capital Budget:   i)              the revised 2018 Water Capital Budget BE ADOPTED in the amount of $32.670,000;   ii)             the revised 2019 Water Capital Budget BE ADOPTED in the amount of $29,281,000; and   iii)            the revised 2020-2025 Water Capital Forecast BE APPROVED, in principle, in the amount of $229,534,000.

e)            That the Water Reserves and Reserve Funds Overview BE APPROVED; it being noted projections are subject to annual review and adjustment.

f)             Review of Wastewater and Treatment Capital Budget Amendments

i)              That the following 2018-2019 Multi-Year Budget adjustments to the Wastewater & Treatment Capital Budget BE APPROVED and the associated 2020-2025 forecast period adjustments, where applicable, BE APPROVED in principle; it being noted that financing can be accommodated within the Capital Plan without impacting the wastewater & treatment rates:   Lifecycle Renewal (Page 3)   A)        EW2476 – Elliott-Laidlaw Remediation Works             ($1,700,000) (2018)             $1,700,000 (2020-2025)   B)        ESSWM-STMRM – Dingman Creek and Other Stream Remediation             ($1,796,000) (2018)             $1,796,000 (2019).

ii)             That the following Wastewater & Treatment Capital Budget adjustment only impacting the 2020-2025 Capital Budget Forecast BE APPROVED in principle:   ES2681 – Mud Creek East Branch Stormwater Budget Increase $1,000,000 (2020-2025).

g)            That the reconciliation of the tabled Wastewater & Treatment Budget to the Public Sector Accounting Board financial statement budget BE RECEIVED for information.

h)            That, in accordance with section 291(4)(c) of the Municipal Act, 2001, as amended, the Wastewater & Treatment Operating Budget reflecting annual rate increases of 3% for the 2018-2019 period BE READOPTED with no net change.

i)             That, in accordance with section 291(4)(c) of the Municipal Act, 2001, as amended, the following actions be taken with respect to the Wastewater & Treatment Capital Budget:   A)        The revised 2018 Wastewater & Treatment Capital Budget BE ADOPTED in the amount of $67,029,000.   B)        The revised 2019 Wastewater & Treatment Capital Budget BE ADOPTED in the amount of $53,548,000.   C)        The revised 2020-2025 Wastewater & Treatment Capital Forecast BE APPROVED, in principle, in the amount of $382,349,000.

j)             That the Wastewater & Treatment Reserves and Reserve Funds Overview BE APPROVED; it being noted projections are subject to annual review and adjustment.

Motion Passed

Motion Passed

8.   2019 Budget – Identification of Potential

Adjustments to Achieve Targets

That the City Manager BE REQUESTED to report back, during the 2019 Budget review process, with potential adjustments to the 2019 Budget that would provide for the targets set by the 2016-2019 Multi-Year Budget.

Motion Passed

Motion Passed

(See Confidential Appendix to the 20th Report of the Strategic Priorities and Policy Committee enclosed for Members only.)

The Strategic Priorities and Policy Committee convened in camera from 4:18 PM to 4:42 PM  and from 7:28 PM to 8:48 PM after having passed a motion to do so, with respect to the following matters:

Motion Passed

Motion Passed