Strategic Priorities and Policy Committee

Report

Meeting #:	5th Meeting of the Strategic Priorities and Policy Committee (Continued) - BUDGET
Date:	Monday, January 28, 2019 at 10:00 A.m. - 11:30 A.m.
Location:	Council Chambers

PRESENT:

• Councillors M. van Holst,
• S. Lewis,
• M. Salih,
• J. Helmer,
• M. Cassidy,
• P. Squire,
• J. Morgan,
• S. Lehman,
• A. Hopkins,
• P. Van Meerbergen,
• S. Turner,
• E. Peloza,
• A. Kayabaga,
• and S. Hillier

ABSENT:

• Mayor E. Holder (Chair)

ALSO PRESENT:

• M. Hayward, A.L. Barbon, B. Card, B. Coxhead, S. Datars Bere, J. Davies, A. Dunbar, J. Fleming, M. Galczynski, S. King, G. Kotsifas, L. Livingstone, S. Mathers, J. Millson, K. Murray, D. O’Brien, M. Ribera, C. Saunders, K. Scherr, M. Schulthess, S. Spring, S. Stafford and B. Westlake-Power.

  
  The meeting is called to order at 10:03 AM.

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4.

Items for Direction

4.2

Review of Capital Budget Amendments (rounded to the closest $1,000)

• That the following actions be taken with respect to the 2019 Annual Budget Update - Capital, Amendment Cases #8 (London Convention Centre - Realign 10 Year Capital Plan) - Net Impact $1,857 (2019), $(2,489) (2020-2025), #9 (Covent Garden Market Garage Painting) - Net Impact $50 (2019), $52 (2020-2025),#10 (Masonville Transit Village Secondary Plan) - Net Impact $75 (2019), #11 (Project Estimate updates - Growth Transportation Capital Projects) - Net Impact $(1,325) (2019), $23,970 (2020-2025) and #12 (Realignment of Growth Transportation Capital Projects) - Net Impact $(6,833) (2019), $6,833 (2020-2025); it being noted that the financing can be accommodated within the capital plan without impacting the tax levy:

  a)         changes to the 2019 capital budget, Cases #8 to #12, representing a decrease of $6.2 million BE APPROVED;

  b)         changes to the 2020-2025 forecast period, Cases #8 to #12, representing an increase of $28.4 million BE APPROVED, in principle; and

  c)         the following capital budget adjustments, only impacting the 2020-2025 forecast period, BE APPROVED, in principle; it being noted that the changes to the forecast represent an increase of $13.1 million:

              i)  Information Technology Services Capital Plan Changes - Lifecycle Renewal - Net Impact $(1,060);

              ii)  Victoria Bridge Replacement - Lifecycle Renewal - Net Impact $10,840; and,

              iii)  Victoria Bridge Replacement - Active Transportation - Lifecycle Renewal - Net Impact $3,300.

  
  Motion Passed

  Voting Record:

  
  
• Moved by: J. Helmer
  Seconded by: M. van Holst

  That Capital Budget Amendments #8 (London Convention Centre - Realign 10 Year Capital Plan), #10 (Masonville Transit Village), #11 (Project Estimate Updates - Growth Transportation Capital Projects) and #12 (Realignment of Growth Transportation Capital Projects), BE APPROVED.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)
• Moved by: S. Lehman
  Seconded by: E. Peloza

  That Capital Budget Amendment Business Case #9, (Covent Garden Market Garage Painting), BE APPROVED.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.3

Reconciliation of the Tabled Budget

• Moved by: M. van Holst
  Seconded by: S. Lewis

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

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.4

Operating Budget

• That in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the revised 2019 tax levy BE READOPTED in the gross amount of $960,381,425 and in the net amount of $606,536,348.

  
  Motion Passed

  Voting Record:

  
  
• Moved by: S. Lewis
  Seconded by: M. Cassidy

  That in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the revised 2019 tax levy, for all matters excluding childcare, golf, the Community Grant Program and Middlesex London Health Unit, BE READOPTED in the gross amount of $895,291,972 and in the net amount of $591,432,626.

  
  

  Yeas: (11)	S. Lewis, M. Salih, J. Helmer, M. Cassidy, J. Morgan, S. Lehman, A. Hopkins, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Nays: (3)	M. van Holst, P. Squire, and P. Van Meerbergen
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (11 to 3)
• Moved by: A. Hopkins
  Seconded by: M. Cassidy

  That in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the revised 2019 tax levy related to childcare BE READOPTED in the gross amount of $52,347,793 and in the net amount of $6,209,761.

  
  

  Yeas: (11)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, J. Morgan, S. Lehman, A. Hopkins, E. Peloza, A. Kayabaga, and S. Hillier
  Nays: (1)	P. Squire
  Recuse: (2)	P. Van Meerbergen, and S. Turner
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (11 to 1)
• Moved by: S. Turner
  Seconded by: M. Cassidy

  That in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the revised 2019 tax levy related to golf BE READOPTED in the gross amount of $3,849,601 and in the net amount of $1,902.

  
  

  Yeas: (11)	M. van Holst, S. Lewis, M. Salih, M. Cassidy, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, and S. Hillier
  Nays: (2)	P. Squire, and A. Kayabaga
  Recuse: (1)	J. Helmer
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (11 to 2)
• Moved by: S. Lewis
  Seconded by: M. van Holst

  That in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the revised 2019 tax levy related to the Community Grant Program BE READOPTED in the gross amount of $2,797,000 and in the net amount of $2,797,000.

  
  

  Yeas: (12)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, E. Peloza, A. Kayabaga, and S. Hillier
  Nays: (1)	P. Van Meerbergen
  Recuse: (1)	S. Turner
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (12 to 1)
• Moved by: J. Helmer
  Seconded by: M. Cassidy

  That in accordance with section 291(4)(c) of the Municipal Act 2001, as amended, the revised 2019 tax levy funding for the Middlesex London Health Unit BE READOPTED in the gross amount of $6,095,059 and in the net amount of $6,095,059.

  
  

  Yeas: (13)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, E. Peloza, A. Kayabaga, and S. Hillier
  Recuse: (1)	S. Turner
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (13 to 0)

4.5

Capital Budget

• Moved by: J. Helmer
  Seconded by: S. Lewis

  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:
  
  a) the revised 2019 capital budget BE READOPTED in the amount of $205,382,000; and
  
  b) the revised 2020-2025 capital forecast BE APPROVED in principle in the amount of $1,523,527,000.

  
  

  Yeas: (13)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Nays: (1)	P. Van Meerbergen
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (13 to 1)

4.6

Reserves and Reserve Funds Overview

• Moved by: J. Helmer
  Seconded by: A. Kayabaga

  That the Reserves and Reserve Funds Overview, as outlined in the 2019 Tax Supported Budget document dated December 17, 2018, BE APPROVED; it being noted projections are subject to annual review and adjustment.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.7

By-laws regarding Operating and Capital Budgets

• Moved by: A. Hopkins
  Seconded by: E. Peloza

  That the Civic Administration BE DIRECTED to bring forward any necessary by-laws regarding the operating and capital budgets for introduction at Municipal Council on February 12, 2019.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.8

2019 Tax Levy

• Moved by: A. Kayabaga
  Seconded by: M. Cassidy

  That the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer and the City Clerk BE INSTRUCTED to prepare the 2019 Tax Levy By-law for introduction and enactment by the Municipal Council at the appropriate time.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.9

Water – Review of 2019 Capital Budget Amendments – (rounded to the closest $1,000)

• Moved by: S. Hillier
  Seconded by: S. Turner

  That the following Capital Budget Amendments - Water, BE APPROVED:

  Case #1 – Arva Huron Watermain Environmental Assessment - Net Impact $600 (2019)
  Case #2 – New Watermain Pond Mills Road - Net Impact $585 (2019) Case #3 – Arva Pumping Station Upgrade - Net Impact $(332) (2019),$332 (2020-2025)
  Case #4 – New Watermain Summercrest Southdale - Net Impact $(1,131) (2019), $1,131 (2020-2025);

  it being noted that the financing can be accommodated within the capital plan without impacting the Water rates.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.10

Reconciliation of the Tabled Water Budget

• Moved by: J. Helmer
  Seconded by: S. Lewis

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

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.11

Water Operating Budget – Annual Rate Increase (to be confirmed)

• Moved by: S. Hillier
  Seconded by: M. Cassidy

  That in accordance with section 291(4)(c) of the Municipal Act, 2001, the Water Operating budget reflecting an annual rate increase of 3% for the 2019 period BE READOPTED with no net change.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.12

Water Capital Budget

• Moved by: M. Cassidy
  Seconded by: A. Hopkins

  That in accordance with section 291(4)(c) of the Municipal Act, 2001, the following actions be taken with respect to the Water Capital budget:
  
  a)     the revised 2019 capital budget BE READOPTED in the amount of $28,302,000; and
  
  b)     the revised 2020-2025 capital forecast BE APPROVED in principle in the amount of $231,001,000.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.13

Water Reserves and Reserve Funds Overview

• Moved by: S. Lewis
  Seconded by: S. Hillier

  That the Water Reserves and Reserve Funds Overview, as outlined in the 2019 Water and Wastewater & Treatment Budget document dated December 17, 2018, BE APPROVED; it being noted projections are subject to annual review and adjustment.

  
  

  Yeas: (13)	S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Nays: (1)	M. van Holst
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (13 to 1)

4.14

Wastewater & Treatment – Capital Budget Amendments (rounded to the closest $1,000)

• Moved by: A. Hopkins
  Seconded by: S. Lewis

  That the following Capital Wastewater & Treatment Capital Budget Amendments BE APPROVED:

  Case #5 – Erosion Remediation in Open Watercourses Management and Reclamation - Net Impact $320 (2019)
  Case #6 – Replacement of Equipment Wastewater Treatment Plants -Net Impact $690 (2019)
  Case #7 – Dingman Creek and other Stream Remediation - Net Impact$(1,796) (2019), $1,796 (2020-2025)
  Case #8 – Dingman Creek Main Channel Remediation Works - Net Impact $(2,300) (2019), $2,300 (2020-2025)
  Case #9 – Dingman Creek  on-line SWM Facility #2 - Net Impact $(4,290) (2019), $4,290 (2020-2025)
  Case #10 – Carling Creek Trunk Storm Sewer Phase IV - Net Impact $(1,350) (2019), $1450 (2020-2025)

  Capital Budget Amendments – 2020-2025 – PDC’s Installed with Claimable Remediation Works – Net Impact $(100); and Greenway Wastewater Treatment Plant Flood Proofing and Effluent Pumping Station – Net Impact $6,850;

  it being noted that the financing can be accommodated within the capital plan without impacting Wastewater & Treatment rates.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

4.15

Reconciliation of the Tabled Wastewater & Treatment Budget

• Moved by: M. Cassidy
  Seconded by: S. Lehman

  That items 4.15 to 4.18, inclusive BE APPROVED, as follows:

  4.15    Reconciliation of the Tabled Wastewater & Treatment Budget

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

  4.16     Wastewater & Treatment Operating Budget - annual Rate Increase (to be confirmed)

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

  4.17    Wastewater & Treatment Capital Budget

  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 2019 capital forecast BE APPROVED in the amount of $43,542,000; and

  b)     the revised 2020-2025 capital forecast BE APPROVED in principle in the amount of $373,691,000.

  4.18  Wastewater & Treatment Reserves and Reserve Funds Overview

  That the Wastewater & Treatment Reserves and Reserve Funds Overview, as outlined in the 2019 Water and Wastewater & Treatment Budget document dated December 17, 2018, BE APPROVED; it being noted that the projections are subject to annual review and adjustment.

   

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

5.

Deferred Matters/Additional Business

5.1

ADDED - City Budget 2019 - Recommendations

• Moved by: S. Turner
  Seconded by: P. Van Meerbergen

  That the communication dated January 15, 2019, from the London Chamber of Commerce, with respect to 2019 Budget recommendations, BE RECEIVED.

  
  

  Yeas: (14)	M. van Holst, S. Lewis, M. Salih, J. Helmer, M. Cassidy, P. Squire, J. Morgan, S. Lehman, A. Hopkins, P. Van Meerbergen, S. Turner, E. Peloza, A. Kayabaga, and S. Hillier
  Absent: (1)	Mayor E. Holder

  
  Motion Passed (14 to 0)

6.

Confidential

None.

7.

Adjournment

The meeting adjourned at 11:00 AM.