I.

CALL TO ORDER

1.

Disclosures of Pecuniary Interest

II.

CONSENT ITEMS

2.

STAFF REPORT - London Children's Museum Capital Funding Request

3.

STAFF REPORT - 2018 Annual Budget Update - Public Engagement

4.

STAFF REPORT - Strategic Investment Update and Other Options to Reduce Budget Pressures

III.

SCHEDULED ITEMS

IV.

ITEMS FOR DIRECTION

5.

Budget Overview

6.

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

a)

Review of Operating Budget Amendments (Page 2)

i)

Operating Budget Amendments – Recommended - New Council Direction and Cost/Revenue Drivers

Recommendation:

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%:

New Council Direction (Page 2)

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)

Cost/Revenue Driver (Page 3)

C)        Upper Thames River Conservation Authority             (UTRCA) 10 Year Environmental Targets Strategic             Plan

            (Case #3):

            $191,000 Net (2018)

            $400,000 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)

Operating Budget Amendments – Recommended – New Regulation & In Camera (Page 4)

Recommendation:

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):

            $1,453,000 Net (2018)

            $2,024,000 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)

Operating Budget Amendments - For Consideration – New Council Direction (Supplemental)

Recommendation:

That the following Multi-Year Budget adjustment to the Operating Budget resulting from the new Council direction, BE CONSIDERED; 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)
            (Case #20)

b)

Review of Capital Budget Amendments

i)

Capital Budget Amendments (Page 5)

Recommendation:  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)

Capital Budget Amendments – 2020-2025 Forecast (Page 7)

Recommendation:  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.

c)

Other Budget Recommendations

i)

Recommendation:  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)

Recommendation:  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 $xx and in the net amount of $xx after recognizing an estimated $xx of increased taxation from assessment growth; and

B)        the revised 2019 forecasted tax levy BE ADOPTED in the gross amount of $xx and in the net amount of $xx.

iii)

Recommendation:  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 $xx;

B)        the revised 2019 Capital Budget BE ADOPTED in             the amount of $xx;

C)        the revised 2020-2025 Capital Forecast BE             APPROVED in principle, in the gross amount of $xx.

iv)

Recommendation:  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)

Recommendation:  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)

Recommendation:  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.

7.

WATER AND WASTEWATER & TREATMENT BUDGETS

(rounded to the closest $1,000)

a)

Review of Water Capital Budget Amendments

i)

Recommendation:  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)

Capital Budget Amendments – 2020-2025 (Page 2)

Recommendation:  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)

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

c)

Recommendation:  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)

Recommendation:  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 $xx.

ii)

the revised 2019 Water Capital Budget BE ADOPTED in the amount of $xx.

iii)

the revised 2020-2025 Water Capital Forecast BE APPROVED, in principle, in the amount of $xx.

e)

Recommendation:  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)

Recommendation:  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)

Capital Budget Amendments – 2020-2025 (Page 2)

Recommendation:  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)

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

h)

Recommendation:  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)

Recommendation:  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 $xx.

B)        The revised 2019 Wastewater & Treatment Capital Budget BE             ADOPTED in the amount of $xx.

C)        The revised 2020-2025 Wastewater & Treatment Capital             Forecast BE APPROVED, in principle, in the amount of $xx.

j)

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

V.

DEFERRED MATTERS/ADDITIONAL BUSINESS

VI.

CONFIDENTIAL

(Confidential Appendix enclosed for Members only.)

C-1

A matter pertaining to labour relations and employee negotiations, advice or recommendations of officers and employees of the Corporation and advice that is subject to solicitor-client privilege, including communications, reports, advice or recommendations of officers and employees of the Corporation necessary for that purpose.

VII.

ADJOURNMENT