Strategic Priorities and Policy Committee

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REPORT OF THE

Strategic Priorities and Policy Committee

meeting held on February 25, 2016, commencing at 4:00 PM, in the Council Chambers, Second Floor, London City Hall.

PRESENT: Mayor M. Brown and Councillors M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park and J. Zaifman and L. Rowe (Secretary).

ABSENT:

ALSO PRESENT:

I.	CALL TO ORDER

1.	Disclosures of Pecuniary Interest

II.

CONSENT ITEMS

III.

SCHEDULED ITEMS

IV.

ITEMS FOR DIRECTION

2.	CORPORATE OPERATING BUDGET (all amounts rounded to the nearest $1,000s)

a)	Financial Planning and Policy Introduction - Overview of the 2016-2019 Multi-Year Operating Budget.

b)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Culture Services BE ADOPTED:

i)	Page 85 - Centennial Hall - $648,000

ii)	Page 86 - Arts, Culture and Heritage Advisory and Funding - $8,992,000

iii)	Page 87 - Museum London - $6,702,000

iv)	Page 88 - Eldon House - $1,124,000

v)	Page 89 - Heritage - $772,000

vi)	Page 90 - London Public Library - $79,666,000

c)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Economic Prosperity BE ADOPTED:

i)	Page 97 - Business Attraction and Retention - $36,276,000

ii)	Page 98 - Community Improvement/BIA - $934,000

iii)	Page 100 - London Convention Centre - $2,387,000

iv)	Page 101- Tourism London - $7,906,000

v)	Page 102 - Covent Garden Market - $0

d)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Environmental Services BE ADOPTED:

i)	Page 108 - Kettle Creek Conservation Authority - $1,938,000

ii)	Page 109 - Lower Thames Valley Conservation Authority - $686,000

iii)	Page 111 - Upper Thames River Conservation Authority - $11,971,000

iv)	Page 112 - Environmental Action Programs and Reporting - $2,997,000

v)	Page 113 - Garbage Recycling and Composting - $66,297,000

e)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Parks, Recreation and Neighbourhood Services BE ADOPTED:

i)	Page 120 - Neighbourhood and Recreation Services - $79,383,000

ii)	Page 122 - Parks and Urban Forestry - $48,675,000

f)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Planning and Development Services BE ADOPTED:

i)	Page 130 - Building Approvals - $(4,711,000)

ii)	Page 131 - Planning Services - $13,801,000

iii)	Page 132 - Development Services - $15,960,000

g)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Protective Services BE ADOPTED:

i)	Page 139 - Animal Services - $7,496,000

ii)	Page 140 - By-Law Enforcement and Property Standards - $5,254,000 ADDED - Enhanced By-law Enforcement Protocol

iii)	Page 141 - Corporate Security and Emergency Management - $7,213,000

iv)	Page 142 - Fire Services - $226,816,000

v)	Page 144 - London Police Services - $397,154,000

h)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Social and Health Services BE ADOPTED:

i)	Page 152 - Social Housing - $48,246,000

ii)	Page 154 - London and Middlesex Housing Corporation - $38,434,000

iii)	Page 155 - Long Term Care - $20,497,000

iv)	Page 156 - Land Ambulance - $57,310,000

v)	Page 157 - Middlesex-London Health Unit - $24,380,000

vi)	Page 159 - Social and Community Support Services - $66,518,000

i)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Transportation Services BE ADOPTED:

i)	Page 166 - Parking - $(12,877,000)

ii)	Page 167 - Public Transit (LTC) - $113,878,000

iii)	Page 168 - Roadways - $154,918,000

j)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Corporate, Operational and Council Services BE ADOPTED:

i)	Page 176 - Corporate Services - $177,477,000

ii)	Page 177 - Corporate Planning and Administration - $8,896,000

iii)	Page 179 - Council Services - $13,449,000

iv)	Page 180 - Public Support Services - $1,742,000

k)	Recommendation: That the net 2016-2019 Multi-Year Operating Budget for the following services within Financial Management BE ADOPTED:

i)	Page 186 - Capital Levy - $149,549,000

ii)	Page 186 - Debt Servicing - $151,745,000

iii)	Page 186 - Contributions to Capital Reserve Funds - $118,388,000

iv)	Page 186 - Contingencies - $106,476,000

v)	Page 186 - Other Corporate Revenue and Expenditures - $(81,882,000)

vi)	Page 186 - Finance - $22,458,000

3.	CORPORATE CAPITAL BUDGET (all amounts rounded to the nearest $1,000s)

a)	Financial Planning and Policy Introduction - Overview of the 2016-2019 Multi-Year Capital Budget and Reserve Funds.

b)	Recommendation: That the 2016-2019 Multi-Year Lifecycle Renewal Capital Budget BE ADOPTED:

i)	Page 198 - Culture - $6,188,000

ii)	Page 199 - Economic Prosperity - $3,251,000

iii)	Page 200 - Environmental Services - $9,920,000

iv)	Page 201 - Parks, Recreation and Neighbourhood Services - $34,627,000

v)	Page 203 - Protective Services - $19,632,000

vi)	Page 204 - Social and Health Services - $10,682,000

vii)	Page 205 - Transportation Services - $165,618,000

viii)

Page 206 - Corporate, Operational and Council Services - $39,369,000

c)	Recommendation: That the Lifecycle Renewal Capital Forecast for 2020-2025 BE ADOPTED in principle (subject to annual review):

i)	Page 198 - Culture - $8,832,000

ii)	Page 199 - Economic Prosperity - $5,681,000

iii)	Page 200 - Environmental Services - $11,230,000

iv)	Page 201 - Parks, Recreation and Neighbourhood Services - $56,143,000

v)	Page 203 - Protective Services - $35,191,000

vi)	Page 204 - Social and Health Services - $16,348,000

vii)	Page 205 - Transportation Services - $257,255,000

viii)

Page 206 - Corporate, Operational and Council Services - $68,029,000

d)	Recommendation: That the 2016-2019 Multi-Year Growth Capital Budget BE ADOPTED:

i)	Page 210 - Culture - $6,660,000

ii)	Page 210 - Economic Prosperity - $5,000,000

iii)	Page 211 - Parks, Recreation and Neighbourhood Services - $56,056,000

iv)	Page 216 - Planning and Development Services - $3,331,000

v)	Page 217 - Protective Services - $4,128,000

vi)	Page 218 - Transportation Services - $438,410,000

e)	Recommendation: That the Growth Capital Forecast for 2020-2025 BE ADOPTED in principle (subject to annual review):

i)	Page 210 - Culture - $0

ii)	Page 210 - Economic Prosperity - $5,000,000

iii)	Page 211 - Parks, Recreation and Neighbourhood Services - $17,045,000

iv)	Page 216 - Planning and Development Services - $1,125,000

v)	Page 217 - Protective Services - $1,805,000

vi)	Page 218 - Transportation Services - $331,608,000

f)	Recommendation: That the 2016-2019 Multi-Year Service Improvement Capital Budget BE APPROVED:

i)	Page 228 - Culture - $2,500,000 ADDED - Museum London

ii)	Page 229 - Economic Prosperity - $22,264,000

iii)	Page 230 - Environmental Services - $500,000

iv)	Page 231 - Parks, Recreation and Neighbourhood Services - $4,650,000

v)	Page 232 - Protective Services - $2,685,000

vi)	Page 233 - Transportation Services - $9,425,000

vii)	Page 234 - Corporate, Operational and Council Services - $2,363,000

g)	Recommendation: That the Service Improvement Capital Forecast for 2020-2025 BE ADOPTED in principle (subject to annual review):

i)	Page 228 - Culture - $0

ii)	Page 229 - Economic Prosperity - $42,917,000

iii)	Page 230 - Environmental Services - $53,500,000

iv)	Page 231 - Parks, Recreation and Neighbourhood Services - $5,750,000

v)	Page 232 - Protective Services - $47,500,000

vi)	Page 233 - Transportation Services - $300,000

vii)	Page 234 - Corporate, Operational and Council Services - $3,000,000

h)	Recommendation: That the strategic investments with a gross expenditure investment of $53.1 million over the 2016-2019 period ($13.3 million annual average) BE CONSIDERED (Appendix F, Page 253).

That the following actions be taken with respect to Business Case #18 – “Back to the River Project”:

a) $700,000 BE APPROVED in 2016 to complete the necessary environmental assessment; and,

b) $5,000,000 BE IDENTIFIED in the Economic Development Reserve Fund for completion of the Inaugural Project, with the funding to be released upon finalization of the Environmental Assessment, confirmation and Council approval of project costs and confirmation of any external sources of financing.

Motion Passed

YEAS: M. Brown, M. van Holst, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (14)

NAYS: B. Armstrong (1)

Following actions be taken with respect to Business Case #1 – Library Ten Year Capital Plan $1,900,000

a) approve immediate flow of the 2016, 2017 and 2018 ask in the amount of $1,300,000 - using unallocated London Hydro dividend monies - as one-time monies, not from levy; and,

b) approve 2018 capital levy in the amount of $200,000 and 2019 capital levy in the amount of $400,000.

amendment to part b) to read as follows:

"b) an additional $250,000 capital budget allocation from levy annually from 2016-2019"

Motion Failed

YEAS: M. van Holst, B. Armstrong, P. Hubert, V. Ridley, S. Turner (5)

NAYS: M. Brown, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, A. Hopkins, H.L. Usher, T. Park, J. Zaifman (10)

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, H.L. Usher, T. Park, J. Zaifman (14)

NAYS: S. Turner (1)

Business Case #2 – Road Map 2.0 $400,000

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (15)

That the following actions be taken with respect to funding Business Case #3 – Urban Forest Strategy:

a) approve immediate 2016 flow of $1,800,000 to a reserve fund for planting - using unallocated one-time London Hydro dividend monies (for one-time funding); and,

Motion Passed

YEAS: M. Brown, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (14)

NAYS: M. van Holst (1)

b) approve the following tax levy allocations:

2016 - $200,000

2017 - $385,000

2018 - $585,000

2019 - $485,000

For a total funding contribution of $ 3,455,000 (2016 – 2019)

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (15)

Business Case #4 – Thames Valley Corridor Plan $ 1,200,000

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (15)

Business Case #5 – Road Safety Strategy $500,000

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (14)

NAYS: P. Hubert (1)

Business Case #6 – Rapid Transit Implementation Strategy $0

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (15)

an amendment to the allocation to Business Case #7, to increase the 2016 allocation by 750,000, using monies from the one-time London Hydro dividend; noting the revised total for the State of the Infrastructure Report will be $6,750,000

Motion Passed

YEAS: M. Brown, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, T. Park, J. Zaifman (13)

NAYS: M. van Holst, H.L. Usher (2)

Business Case #7, in revised amount of $6,750,000

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (15)

Business Case #20 – Downtown Plan (Small Scale projects) $100,000 in 2016 only, with funding as noted in the Business Case; it being noted there will not be a levy allocation in 2017, 2018 and 2019.

Motion Failed

YEAS: M. van Holst, M. Salih, J. Helmer, S. Turner, H.L. Usher, T. Park (6)

NAYS: M. Brown, B. Armstrong, M. Cassidy, P. Squire, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, J. Zaifman (9)

Business Case #20 – Downtown Plan (Small Scale projects) $100,000

Motion Passed

YEAS: M. Brown, M. van Holst, M. Salih, J. Helmer, A. Hopkins, S. Turner, H.L. Usher, T. Park, J. Zaifman (9)

NAYS: B. Armstrong, M. Cassidy, P. Squire, J. Morgan, P. Hubert, V. Ridley (6)

Business Case #21 – Regenerating Public Housing Plan $750,000 funding source as noted in the Business Case.

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, J. Morgan, P. Hubert, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (14)

NAYS: P. Squire (1)

That the following actions be taken with respect to Business Case #13 – London Strengthening Neighbourhoods Strategy

a) the allocation of $750,000, funding source as noted in the Business Case be approved; and

b) an additional $30,000 be allocated in 2016, from the one-time London Hydro dividend.

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (13)

NAYS: A. Hopkins (1)

RECUSED: P. Hubert (1)

Business Case #8 – Garbage Collection (Weighing/tracking technology) $150,000 funding source as noted in the Business Case.

Motion Passed

YEAS: M. Brown, M. van Holst, B. Armstrong, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, A. Hopkins, V. Ridley, S. Turner, H.L. Usher, T. Park, J. Zaifman (14)

NAYS: P. Hubert (1)

Business Case #9 – Technology – Amanda $1,000,000 funding source as noted in the Business Case.

i)	ADDED - Multi-Year Budget - Supplemental Information For: Strategic Investment Business Case #18 - Back to the River Project, Page 358

ii)	ADDED - Green Bin Program and Modifications to Recycling and Garbage Pick Up - Business Case #24

iii)	ADDED - Reinstate Brownfields Contamination Assessment Study Grant Program - Brownfields Community Improvement Program - Business Case #25

Recommendation: That it BE NOTED that:

a) assessment growth related costs of $6.7 million for 2016 exceed the projected available assessment growth revenue of $6.6 million for 2016 (see Assessment Growth Summary Page 72); it being noted that 2017-2019 assessment growth funding and allocations will be brought forward to Municipal Council during the annual budget adjustments update; and

b) the City Treasurer, Chief Financial Officer, or designate, will report back by March 2016 on the allocation of that revenue, in accordance with the Assessment Growth Policy adopted by Municipal Council.

j)	Recommendation: That the 2016 Corporate Capital Cash flow (Appendix C, page 194) that identifies the accounting recognition of capital expenditures for 2016, consistent with Public Sector Accounting Board standards, BE APPROVED.

k)	Recommendation: That the Reserves and Reserve Fund Overview and Analysis Schedules BE APPROVED, noting projections are subject to annual review and adjustment (Appendix D, Page 236).

Recommendation: That the following actions be taken with respect to the corporate tax levy:

a) the 2016-2019 forecasted tax levy BE ADOPTED in the amount of $___, which represents an approximate average annual increase of ___% from rates;
b) the 2016 tax levy BE ADOPTED in the amount of $___ after recognizing $___ of increased taxation from assessment growth; and
c) the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer and the City Clerk BE INSTRUCTED to prepare the 2016 Tax Levy By-law for introduction and enactment by the Municipal Council at the appropriate time.

m)	Recommendation: That the Civic Administration BE DIRECTED to bring forward any necessary by-laws regarding the Operating and Capital Budgets for introduction at the Council meeting on March 10, 2016.

n)	Recommendation: That the Civic Administration BE AUTHORIZED to accommodate 2016-2019 budget transfers that are considered "housekeeping" in nature and do not impact the Corporate Net Operating Budget.

4.	WATER AND WASTEWATER & TREATMENT BUDGETS

a)	Environmental & Engineering Services Introduction - Overview of the 2016-2019 Multi-Year Water and Wastewater & Treatment Services Budgets

b)	Recommendation: That the following actions be taken with respect to the 2016-2019 Operating Budgets and 2016-2019 Capital Budgets and associated forecasts for Water and Wastewater & Treatment Services:

i)	the 2016-2019 Operating Budgets for Water Services BE ADOPTED as submitted in the 2016-2019 Draft Water and Wastewater & Treatment Budget;

ii)	the 2016-2019 Capital Budgets for Water Services BE ADOPTED as submitted in the 2016-2019 Draft Water and Wastewater & Treatment Budget; and

iii)

the 2020-2025 Capital Forecast for Water Services BE RECEIVED for information:

it being noted that all rates and charges related to the provision of Water, with the exception of the Customer Assistance charge, were increased by 3% effective January 1, 2016 as approved by Council on December 8, 2015;

iv)	the 2016-2019 Operating Budgets for Wastewater & Treatment Services BE ADOPTED as submitted in the 2016-2019 Draft Water and Wastewater & Treatment Budget;

v)	the 2016-2019 Capital Budgets for Wastewater & Treatment Services BE ADOPTED as submitted in the 2016-2019 Draft Water and Wastewater & Treatment Budget; and

vi)

the 2020-2025 Capital Forecast for Wastewater and Treatment Services BE RECEIVED for information;

it being noted that all rates and charges related to the provision of Wastewater & Treatment Services, with the exception of charges related to the installation or replacement of Private Drain Connections, were increased by 3% effective January 1, 2016 as approved by Council on December 8, 2015.

V.	DEFERRED MATTERS/ADDITIONAL BUSINESS

5.	ADDED - 2016-2019 Budget - Public Input

ADDED – Recommendation: That pursuant to section 2.4 of the Council Procedure By-law, section 13.7 of the said by-law BE SUSPENDED to in order to facilitate the mandatory review of the annual budget and readoption of the budget for that year and subsequent years of the 2016-2019 Multi-Year Operating, Capital, Water and Wastewater & Treatment Budgets, as required by section 291 of the Municipal Act, 2001, in a time frame that may be less than the twelve month period from the last adoption or readoption of the 2016-2019 Multi-Year Operating, Capital, Water and Wastewater & Treatment Budgets.

7.	ADDED - Absence from Meeting

8.	ADDED - 2016-2019 Budget - Public Input

9.	ADDED - Not to be heard before 9:00 a.m. on Friday, February 19, 2016 - Amanda Stratton, Chair, Transportation Advisory Committee

10.	ADDED - 2016-2019 Budget - Public Input

VI.

ADJOURNMENT

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