I.

CALL TO ORDER

1.

Disclosures of Pecuniary Interest

II.

CONSENT ITEMS

III.

SCHEDULED ITEMS

IV.

ITEMS FOR DIRECTION

2.

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

a)

Financial Planning and Policy - Introduction

b)

Review of Operating Budget Amendments

i)

Page 1 – Permanent Operating Budget Amendments – Recommended

Recommendation:

That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act, 2001, as amended, the following “permanent” expenditure and revenue changes to the 2017-2019 Operating Budget BE APPROVED; it being noted that the 2016-2019 average annual tax levy increase would remain at 2.8%:

A)        Energy Prices – New Cap and Trade Program

            (Case #1):

            $0 Net (2017)

            $0 Net (2018)

            $200,000 Net (2019)

B)        Carrying/Holding Costs on City-Owned Properties             (Case #2):

            $300,000 Net (2017)

            $300,000 Net (2018)

            $400,000 Net (2019)

C)        Updated Debt Servicing Budget

            (Case #3):

            ($300,000) Net (2017)

            ($300,000) Net (2018)

            ($300,000) Net (2019)

ii)

Page 2 – Permanent Operating Budget Amendments – For Consideration

Recommendation:

That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act, 2001, as amended, the following “permanent” expenditure and revenue changes to the 2017-2019 Operating Budget BE CONSIDERED; it being noted that the 2016-2019 average annual tax levy increase would rise from 2.8% to 2.9%:

A)        Upper Thames River Conservation Authority –             Environmental Targets Strategic Plan (Case #4):

            $179,000 Net (2017)

            $372,000 Net (2018)

            $580,000 Net (2019)

B)        London & Middlesex Housing Corporation – Building             Maintenance and Tenant Services (Case #5):

            $258,000 Net (2017)

            $323,000 Net (2018)

            $389,000 Net (2019)

iii)

Page 3 – One-Time Operating Budget Amendments – For Consideration

Recommendation:

That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act, 2001, as amended, the following “one-time” expenditure and revenue changes to the 2017-2019 Operating Budget BE CONSIDERED; it being noted that these changes have no tax levy impact:

A)        Community Economic Roadmap Implementation             (Case #6):

            $0 Net (2017)

            $0 Net (2018)

            $0 Net (2019)

B)        Housing Development Corporation – Additional             Investment In Affordable Housing Development

            (Case #7):

            $0 Net (2017)

c)

Review of Capital Budget Amendments

i)

Page 4 – Capital Budget Amendments

Recommendation:  That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act, 2001, as amended, the following Capital Budget changes for 2017-2019, representing a $4.6 million decrease in the Capital Budget, BE APPROVED; it being noted that these changes have no tax levy impact:

LIFECYCLE RENEWAL (Page 4):

A)        Public Art Restoration

            (Case #8):

            $95,000 (2017)

            $145,000 (2018)

            $169,000 (2019)

B)        Municipal Waste Study

            (Case #9):

            $1,000,000 (2017)

            $200,000 (2018)

            $500,000 (2019)

C)        Vehicle & Equipment Replacement

            (Case #10):

            $393,000 (2017)

            $36,000 (2018)

            $601,000 (2019)

D)        Other Lifecycle Renewal Amendments (2016-2019)*

            (Case #11):

            Library Capital Plan (e.g. Facility Renewal):            ($419,000)       (2017)

            $225,000 (2018)

            $126,000 (2019)

            Covent Garden Roof Replacement:

            ($350,000) Net (2019)

*Source of Financing: Library Facilities & Equipment Reserve Fund, Covent  Garden Market Reserve Fund.

GROWTH (Page 5):

A)        Northwest and Southeast Libraries:

            (Case #14)

            -Defer Northwest from 2019 to 2020

                        ($3,330,000)(2019)

            -Defer Southeast from 2018 to 2019

                        ($3,330,000) (2018)

                        $3,330,000 (2019)

            -Increase funding to Southeast Library to reflect             recent higher tender results for facility projects

                        $1,038,000 (2019)

B)        Multi-Purpose Recreation Centre Southeast

            (Case #15)

            $240,000 (2017)

            $261,000 (2018)

            $244,000 (2019)

C)        Transportation

            (Case #16)

            $11,167,000 (2017)

            ($14,057,000) (2018)

            ($588,000) (2019)

D)        Other Growth-Related Amendments (2016-2019)             (Case #17)

            ($1,065,000) (2018)

            ($1,863,000) (2019)

SERVICE IMPROVEMENT (Page 6)

A)        Carrying/Holding Costs on City-Owned Properties             (Case #2)

            $1,000,000 (2017)

B)        Revision to Capital Project for Ontario Works Desk-            Side Service Delivery Model

            (Case #18)

            $250,000 (2017)

C)        Facility Energy Management

            (Case #19)

            $400,000 (2017)

            $400,000 (2018)

            $200,000 (2019)

D)        Other Service Improvement Amendments (2016-            2019)

            (Case #20)

            -Glen Cairn and Silverwoods Arena

                        $80,000 (2018)

            -Relocate resources for Fire Station #16 (deferred             from 2019 to 2020)

                        ($200,000) (2018)

                        ($1,535,000) (2019)

            -Western Road and Philip Aziz (deferred from 2017             to 2018)

                        ($6,000,000) (2017)

                        $6,000,000 (2018)

ii)

Page 7 – Capital Budget Amendments – 2020-2025

Recommendation:

That, in accordance with section 291(4)(a) and 291(4)(b) of the Municipal Act, 2001, as amended, the following forecasted Capital Budget changes for the 2020-2025 period, representing a $19.6 million increase in the Capital Budget, BE APPROVED in principle (subject to annual review):

LIFECYCLE RENEWAL:

A)        Public Art Restoration                         $1,014,000

            (Case #8)

B)        Vehicle & Equipment Replacement   ($1,038,000)

            (Case #10)

C)        Library Capital Plan                            ($820,000)

            (Case #11)

D)        Covent Garden Roof Replacement   $350,000

            (Case #11)

E)        Replace Firefighter Equipment           ($110,000)

            (Case #11)

F)         Police Equipment                                $1,308,000

            (Case #12)

G)        Replace Police Vehicles                     $540,000

            (Case #12)

H)        London Transit Highbury Facility

            Demolition and Rebuild                       $15,000,000

            ($15M 2022-2025; $30.6 M beyond

            (Case #13)

GROWTH:

A)        Northwest Library

            (deferred from 2019 to 2020)             $4,704,000

            (Case #14)

B)        Transportation Growth Projects

            (2020-2025 impact of changes)         $1,188,000

            (Case #16)

C)        New Fire Station #15

            (deferred from 2019 to 2020)             $3,886,000

            (Case #17)

D)        New Spray Pads–increased funding  $52,000

            (Case #17)

E)        Transportation Growth Projects

            (advanced/deferred projects)             ($8,266,000)

            (Case #17)

SERVICE IMPROVEMENT:

A)        Glen Cairn and Farquharson Arenas  ($1,290,000)

            (Case #20)

B)        Relocate Resources for

            Fire Station #16

            (deferred from 2019 to 2020)             $3,102,000

            (Case #20)

d)

Other Budget Recommendations

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 Operating Budget (Appendix A, Page 26):

A)        the revised 2017 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 2018-2019 forecasted tax levy BE             ADOPTED in the gross amount of $xx and in the net             amount of $xx.

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 Capital Budget (Appendix C, Page 36):

A)        the revised 2017 Capital Budget BE ADOPTED in             the amount of $xx;

B)        the revised 2018 Capital Budget BE ADOPTED in             the amount of $xx;

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

D)        the revised 2020-2025 Capital Forecast BE             APPROVED in principle, in the gross amount of $xx             (subject to annual review).

iii)

Recommendation:  That the 2017 Corporate Capital Cash Flow (Page 40) that identifies the accounting recognition of capital expenditures for 2017, consistent with Public Sector Accounting Board standards, BE APPROVED.

iv)

Recommendation:  That the Reserves and Reserve Fund Overview BE APPROVED; it being noted projections are subject to annual review and adjustment (Appendix D, page 41).

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 6, 2016.

vi)

Recommendation:  That the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer and the City Clerk BE INSTRUCTED to prepare the 2017 Tax Levy By-law for introduction and enactment by the Municipal Council at the appropriate time.

3.

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

a)

Financial Planning and Policy - Introduction

b)

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 2017-2019 period BE READOPTED with no change; it being noted that the Civic Administration will be reporting back on any adjustments that may be required as a result of the Clean Water and Wastewater Fund application.

c)

Recommendation:  That, in accordance with section 291(4)9c) of the Municipal Act, 2001, as amended, the Water Capital Budget for the 2017-2019 period BE READOPTED with no change; it being noted that the Civic Administration will be reporting back on any adjustments that may be required as a result of the Clean Water and Wastewater Fund application.

d)

Recommendation:  That Capital Budget Amendment #1 for the 2020-2025 period (EW3624 Burbrook Main Upgrade Phase II), in the amount of $2,250,000 (Page 18) BE APPROVED in principle (subject to annual review).

e)

Recommendation:  That the Water Reserves and Reserve Fund Overviews BE APPROVED; it being noted that projections are subject to annual review and adjustment.

f)

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 2017-2019 period BE READOPTED with no change; it being noted that the Civic Administration will be reporting back on any adjustments that may be required as a result of the Clean Water and Wastewater Fund application.

g)

Recommendation:  That the following Wastewater & Treatment Capital Budget amendments for the 2017–2019 multi-year budget period, representing a $0.2 million decrease in the Capital Budget, BE APPROVED; it being noted that there is no impact to wastewater rates from these amendments and the Civic Administration will be reporting back on any adjustments that may be required as a result of the Clean Water and Wastewater Fund application:

GROWTH:

i)          ES5427 – Pre-assumption Monitoring of SWM Facilities

            (Amendment #2)

            ($200,000) (2017)

ii)         Timing changes to Wastewater Growth-Related Capital             Projects

            (Amendment #3)

            A)        ES2475 Dingman Creek Main Channel Remediation                         Works

                        ($700,000) (2017)

                        $700,000 (2018)

            B)        ES3021 – Land for SWM Facilities

                        ($100,000) (2017)

                        $100,000 (2018)

            C)        ES5428 – Infill & Intensification Nodes (Storm Sewer                         Servicing)

                        ($689,000) (2017)

                        $689,000 (2018)

h)

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:

i)

the revised 2017 Capital Budget BE ADOPTED in the amount of $xx;

ii)

the revised 2018 Capital Budget BE ADOPTED in the amount of $xx; and

iii)

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

i)

Recommendation:  That the Wastewater & Treatment Capital Forecast for the 2020-2025 period BE APPROVED, in principle and with no change (subject to annual review).

j)

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

k)

Recommendation:  That the Civic Administration BE DIRECTED to update the 20-Year Operating and Capital Plan Forecast based on the cumulative impacts of the Clean Water and Wastewater Fund (Phases 1 and 2), Rapid Transit, Development Charge Update, regulatory changes, optimization programs and use of innovation; it being noted that these updated Plans will form the basis for the 2020-2023 multi-year budget and rate forecast.

V.

DEFERRED MATTERS/ADDITIONAL BUSINESS

4.

ADDED - STAFF REPORT - 2016-2019 Multi-Year Budget - 2017 Annual Budget Update - Financing Options to Mitigate Tax Rate Increases

5.

ADDED - STAFF REPORT - 2016-2019 Multi-Year Budget Amendment Form - Case #21

6.

ADDED - STAFF REPORT - 2017 Annual Budget Update - Public Input

7.

ADDED - COUNCIL MEMBER SUBMISSION - Absence from Meetings

VI.

ADJOURNMENT