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TABLE OF CONTENTS

Executive Summary ......................................................................................................................................................................... 1

Recommendations ........................................................................................................................................................................... 2

2016-2019 Multi-Year Budget Recap ...............................................................................................................................................10

2018-2019 Multi-Year Budget Amendments ...................................................................................................................................11


Operating Budget Amendments ................................................................................................................................................15
2016-2019 Multi-Year Capital Budget and Ten Year Capital Plan (Including Capital Amendments) ..........................................20

Appendix A - Operating Budget Overview .....................................................................................................................................29

Appendix B - Staffing Changes Overview .....................................................................................................................................37

Appendix C - Capital Budget Overview .........................................................................................................................................40

Appendix D - Reserves & Reserve Funds Overview .....................................................................................................................47

Appendix E - Debt Overview ...........................................................................................................................................................49

Appendix F - Reconciliation of Tabled Budget to Public Sector Accounting Board Financial Statement Budget ...................51

Appendix G - Timetable ..................................................................................................................................................................55


EXECUTIVE SUMMARY
In 2016, the City of London moved away from the traditional annual budget process to a strategic multi-year budget framework that
provides for greater linkages to Municipal Councils Strategic Plan with the budget period covering 2016 to 2019. In the first year of
the multi-year budget process, Municipal Council approved an average annual increase from rates of 2.8% for the 2016-2019 multi-
year budget period. During the first annual update to the multi-year budget (2017), the average annual increase from rates was
maintained at 2.8%. The City of London is now in the second annual update to the multi-year budget (2018).

The budget that is being tabled presents some significant budgetary challenges, most of which are beyond the control of Civic
Administration. The budget document contains a total of 19 budget amendments, each supported by a multi-year budget
amendment case, that are being recommended by Civic Administration. Of the recommended budget amendments, all of the capital
budget amendments can be accommodated within the capital plan resulting in no impact to the tax levy. The remaining operating
budget amendments, excluding one, result in an impact to the tax levy.

Should Municipal Council approve all of the recommended budget amendments,


ProposedProvinciallegislationrelatedto excluding two budget amendments that are beyond the control of Civic
Administration, the average annual increase from rates would remain at 2.8% for the
minimumwageandanincamera 2016-2019 multi-year budget period. It is important to note that in an effort to
corporatebudgetmatterarecreating manage budget pressures, Civic Administration has submitted two budget
significantbudgetarychallenges,whichare amendments that result in budget reductions that have assisted in keeping the
average annual increase from rates at 2.8%.
beyondthecontrolofCivicAdministration
There are two budget amendments placing significant pressure on the budget.
These budget amendments include (1) proposed Provincial legislation related to
increasing minimum wage, and (2) a confidential corporate budget matter. The
proposed increases to minimum wage is an Ontario Government initiative that would rapidly increase minimum wage from
$11.60/hour to $15.00/hour by January 1, 2019. If passed, this legislation would have a financial impact to many organizations
across Ontario, including the City of London. In addition to the increase in minimum wage, a confidential corporate budget matter
which will be discussed in-camera, is also placing significant pressure on the budget. If all recommended budget amendments are
approved, including the two budget amendments that are beyond the control of Civic Administration, the average annual increase
from rates would rise to 3.0%.

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RECOMMENDATIONS
ALL AMOUNTS REPORTED IN THOUSANDS ($000S) AND ARE SUBJECT TO ROUNDING

Property tax supported 2016-2019 multi-year budget

Operating Budget Amendments

a) That the following multi-year budget amendment cases impacting 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%.

OperatingBudgetAmendments(RecommendedNewCouncilDirection)
Case
Description Budget Category 2018 2019
#
London Music Industry Development Office Expenditure Inc/(Dec) 150 150
To continue the London Music Industry Development Office Revenue (Inc)/Dec (150) (150)
1 on a two year temporary basis. A strategic use of the Net - -
Economic Development Reserve Fund is recommended in
2018 and 2019 resulting in no impact to the tax levy.
Councillors' Annual Compensation Expenditure Inc/(Dec) - 245
Effective with the commencement of the next term of Revenue (Inc)/Dec - -
2 Council, the annual compensation for serving as a Ward Net - 245
Councillor will be set at the 2016 median full-time
employment income for Londoners.
Total Net Budget Amendments - New Council Direction - 245
Incremental Net Increase/(Decrease) - 245

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OperatingBudgetAmendments(RecommendedCost/RevenueDriver)
Case
Description Budget Category 2018 2019
#
Upper Thames River Conservation Authority (UTRCA) Expenditure Inc/(Dec) 191 400
10 Year Environmental Targets Strategic Plan Revenue (Inc)/Dec - -
3 An operating budget increase to support the Environmental Net 191 400
Targets Strategic Plan approved by the UTRCA Board of
Directors in June 2016.
Dundas Place - Ongoing Place Management Expenditure Inc/(Dec) 75 475
An operating budget increase to support management, Revenue (Inc)/Dec (75) (100)
4 maintenance, security, and activation of Dundas Place Net - 375
partially offset with a strategic use of the Economic
Development Reserve Fund in 2018 and 2019.
Elimination of the Annual Payment to the Stiller Centre Expenditure Inc/(Dec) (224) (228)
As a result of its achievements, the Stiller Centre for Revenue (Inc)/Dec - -
5 Technology Commercialization of the University of Western Net (224) (228)
Ontario Research and Development Park no longer requires
an annual subsidy.
Increased Ontario Works Administration Subsidy Expenditure Inc/(Dec) - -
Londons share of Provincial Ontario Works administration Revenue (Inc)/Dec (600) (600)
6 subsidy exceeded the amount anticipated in the 2016-2019 Net (600) (600)
multi-year budget.
Total Net Budget Amendments - Cost/Revenue Driver (632) (54)
Incremental Net Increase/(Decrease) (632) 579
Total Net Budget Amendments - New Council Direction & Cost/Revenue Driver (632) 191
Incremental Net Increase/(Decrease) (632) 823

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b) That the following multi-year budget amendment cases impacting the operating budget resulting 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%.

OperatingBudgetAmendment(RecommendedNewRegulation)
Case
Description Budget Category 2018 2019
#
Proposed Minimum Wage Increases Expenditure Inc/(Dec) 1,584 2,207
The Ontario government announced its intention to increase Revenue (Inc)/Dec (131) (183)
the minimum wage from $11.60/hour to $14.00/hour Net 1,453 2,024
7 effective January 1, 2018 (20.7% increase) and $15.00/hour
effective January 1, 2019 (7.1% increase). An operating
budget increase is recommended to reflect the proposed
increase, partially offset by user fee revenues.
Total Net Budget Amendments - New Regulation 1,453 2,024
Incremental Net Increase/(Decrease) 1,453 571

OperatingBudgetAmendment(Recommended"InCamera")
Case
Description Budget Category 2018 2019
#
Confidential Matter - "In-Camera" Expenditure Inc/(Dec) 1,455 2,485
A matter pertaining to labour relations and employee Revenue (Inc)/Dec - -
negotiations, advice or recommendations of officers and Net 1,455 2,485
8 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.
Total Net Budget Amendments - "In-Camera" 1,455 2,485
Incremental Net Increase/(Decrease) 1,455 1,030
Total Net Budget Amendments - New Regulation & "In-Camera" 2,907 4,509
Incremental Net Increase/(Decrease) 2,907 1,602

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Capital Budget Amendments

c) i. That the following actions be taken with regards to the multi-year budget amendment cases impacting the capital budget, it
being noted that financing can be accommodated within the capital plan without impacting the tax levy:

A. Changes to 2018 and 2019 of the multi-year budget period, representing an increase of $11.0 million BE APPROVED,
and

B. Changes to the 2020-2025 forecast period, representing an increase of $56.1 million BE APPROVED in principle.

CapitalBudgetAmendmentsLifecycleRenewal
Case 2020 -
Description 2018 2019 Total
# 2025
Invasive Species Management Strategy
9 350 350 700
Increased funding for invasive species management and removal.
London Police Service - Capital Plan Changes
Changes to the London Police Service capital plan to address
10 increased funding for replacement vehicles and information 77 80 574 731
technology storage server, partially offset by a reduction from a
change in equipment requirements.
Exterior Lighting Redesign & Replacement for all London &
Middlesex Housing Corporation (LMHC) Sites
Replacement and redesign of exterior lighting at LMHC sites is
11 500 500 1,000
required to replace these systems which are at, or approaching, the
end of their useful lives, improve efficiency of lighting system
components and to improve site safety.
Total Budget Amendments - Lifecycle Renewal (LC) 927 930 574 2,431
Total Tax Levy Impact - - - -
Note: Capital budget amendments reflect requested investment, it being noted that financing can be accommodated within the capital
plan without impacting the tax levy.

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CapitalBudgetAmendmentsGrowth
Case 2020 -
Description 2018 2019 Total
# 2025
Realignment of Growth Parks Projects
Changes to the timing of various parks projects to align with
12 (1,617) 807 810 -
changes in timing of subdivision development, noting that there is no
additional funding requirement to the 10 year capital plan.
Deferral of New Fire Station 15
Deferral of new fire station to be located in the southeast area of the
13 City from 2020 to 2022, as well as increased funding to address (200) 611 411
higher costs resulting from recent trends in facility construction
pricing.
Adelaide Street - CPR Grade Separation
Project previously identified beyond the 10 year plan is being
14 7,100 12,800 40,000 59,900
advanced to align with the rapid transit system plan. Construction is
now planned to occur as early as 2021.
Western Road Widening - Platts Lane to Oxford Street
15 Additional funding required due to project modifications resulting 3,500 3,500
from the detailed design.
Realignment of Growth Transportation Projects
16 Changes to the timing of various transportation projects resulting in (11,623) 4,215 7,408 -
no additional funding requirement to the 10 year capital plan.
Total Budget Amendments - Growth (G) (2,640) 17,622 48,829 63,811
Total Tax Levy Impact - - - -
Note: Capital budget amendments reflect requested investment, it being noted that financing can be accommodated within the capital
plan without impacting the tax levy.

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CapitalBudgetAmendmentsServiceImprovement
Case 2020 -
Description 2018 2019 Total
# 2025
Dundas Place Field House
Increased funding for a physical indoor space (field house)
4 280 280
accessible on Dundas Place required to support the day-to-day
operations of the Dundas Flexible Street.
Farquharson, Glen Cairn & Silverwoods Arenas
Decommissioning
17 54 126 180
Increased funding to address higher costs from recent trends in
facility construction pricing.
Relocation of Existing Resources to New Fire Station 16
Deferral of new fire station to be located in the Wharncliffe area
18 south of Springbank Dr. toward Commissioners Rd. W. from 2020 (500) 300 597 397
to 2022, as well as increased funding to address higher costs
resulting from recent trends in facility construction pricing.
Western Rd. & Philip Aziz Ave. Improvements Deferred
Road improvements at Western Rd. and Philip Aziz Ave. deferred
19 from 2018 to 2020 to enable coordination with Rapid Transit (6,000) 6,000 -
improvements that are in development through the Shift
Environmental Assessment.
Total Budget Amendments - Service Improvement (SI) (6,446) 580 6,723 857
Total Tax Levy Impact - - - -
Total LC/G/SI Budget Amendments (8,159) 19,132 56,126 67,099
Total Tax Levy Impact - - - -
Note: Capital budget amendments reflect requested investment, it being noted that financing can be accommodated within the capital
plan without impacting the tax levy.

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ii. That the following capital budget adjustments only impacting the 2020-2025 forecast BE APPROVED in principle, it being
noted the changes to the forecast represent an increase of $3.1 million.


2020 -
Description 2018 2019 Total
2025
Northwest Branch Library Update
Increased funding to address higher costs from recent trends in facility 1,232 1,232
construction pricing.
London Convention Centre Capital Projects Realigning
Refinements to the capital plan resulting in a small increase for event 20 20
furniture and fixtures.
Additional Funding For New Spray Pads
Increased funding to address higher costs from recent trends in 306 306
construction pricing.
Replacement & Relocation of Fire Training Tower
Project has been adjusted to reflect the timing of when funds will be
- -
required for design and construction (construction planned for 2024), noting
that no additional funding is required.
Parking Technology System
Additional funding required in 2022 to address lifecycle renewal 500 500
requirements of the parking technology system.
Realignment of Growth Transportation Projects Only Impacting 2020-
2025
- -
Changes to the timing of various transportation projects resulting in no
additional funding requirement to the 10 year capital plan.
Vehicle and Equipment Replacements
Additional funding required for replacement of vehicle and equipment based
1,089 1,089
on ongoing market evaluations, cost experience and annually adjusted
replacement value research.
Total Budget Adjustments - - 3,147 3,147
Total Tax Levy Impact - - - -
Note: A budget amendment case is not required since these capital project adjustments do not impact the 2016-2019 multi-year
budget period.

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Other Budget Recommendations

d) That the reconciliation of the tabled budget to the Public Sector Accounting Board financial statement budget BE RECEIVED
for information (Appendix F, page 51).

e) 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):
i. The revised 2018 tax levy BE READOPTED in the gross amount of $xx and in the net amount of $xx after recognizing
an estimated $xx of increased taxation from assessment growth.
ii. The revised 2019 forecasted tax levy BE READOPTED in the gross amount of $xx and in the net amount of $xx.

f) 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):
i. The revised 2018 capital budget BE READOPTED in the amount of $xx.
ii. The revised 2019 capital budget BE READOPTED in the amount of $xx.
iii. The revised 2020-2025 capital forecast BE APPROVED in principle in the amount of $xx.

g) That the Reserves and Reserve Funds Overview BE APPROVED; it being noted projections are subject to annual review and
adjustment (Appendix D, page 47).

h) 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 December 12, 2017.

i) 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.

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2016-2019 MULTI-YEAR BUDGET RECAP


ON MARCH 10, 2016, MUNICIPAL COUNCIL APPROVED THE CITYS FIRST EVER MULTI-YEAR
BUDGET COVERING THE PERIOD FROM 2016-2019.
Municipal Council approved an average annual increase from rates of 2.8% for the 2016-2019 multi-year budget. This was
composed of a base operating budget average annual increase of 2.4% that was primarily to maintain existing service levels and an
additional average annual increase of 0.4% to fund strategic investments. In total, 25 strategic investments with a total gross
expenditure of $47.8 million over the 2016-2019 period were approved.

ON DECEMBER 6, 2016, MUNICIPAL COUNCIL APPROVED THE 2017 ANNUAL BUDGET


UPDATE. THIS WAS THE FIRST ANNUAL UPDATE TO THE 2016-2019 MULTI-YEAR BUDGET.
As part of the 2017 Annual Budget Update, Municipal Council approved a total of 20 budget amendments that were the result of new
provincial regulation, new Council direction, and cost drivers from changes in economic conditions. Although a marginal tax levy
increase was recognized, the average annual increase from rates was maintained at 2.8% as approved in the first year of the 2016-
2019 multi-year budget. The annual increase from rates approved by Municipal Council in the first and second year of the 2016-
2019 multi-year budget are contained in Table 1.

Table 1 First Year and Second Year Approved 2016-2019 Multi-Year Budget

20162019MultiYearBudget
2.9% 2.9% 2.9%

3.0%
2.5% 2.9% 2.9% 2.9%
2.5%
2.5%

2.0%

2016 2017 2018 2019


1stYearofMultiYearBudget 2ndYearofMultiYearBudget

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2018-2019 MULTI-YEAR BUDGET AMENDMENTS


Consistent with the 2017 Annual Budget Update, changes to the remaining years of the multi-year budget will be brought forward to
provide flexibility to address special events or circumstances that require funding and resource adjustments. Each budget
amendment will be classified into the following three categories:

1. New or Changed Regulation


A new or changed legislation or regulation with a financial impact to the municipality

2. New Council Direction


A new Council direction that has transpired after the approval of the multi-year budget

3. Cost or Revenue Driver


A corporate or service area budget adjustment as a result of changes in economic conditions

Each budget amendment that has an impact on the remaining years of the multi-year budget (i.e. 2018-2019) is supported by a multi-
year budget amendment case that provides Municipal Council with the justification and rationale for the amendment and the financial
and staffing impacts.

The budget document contains a total of 19 budget amendments that are being recommended by Civic Administration. Of the
recommended budget amendments, all of the capital budget amendments can be accommodated within the capital plan resulting in
no impact to the tax levy. The remaining operating budget amendments, excluding one, result in an impact to the tax levy.

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Should Municipal Council choose to approve all of the recommended budget amendments, excluding the budget amendments
related to proposed Provincial legislation related to minimum wage and an in-camera corporate budget matter (budget amendments
7 and 8) the average annual tax levy from rates from 2016-2019 will be maintained at 2.8% (Table 2). In order to offset budget
pressures, Civic Administration has submitted two budget amendment reductions that have assisted in maintaining the 2016-2019
average annual tax levy increase from rates at 2.8%. It is important to note that in addition to the submitted budget amendment
reductions, Civic Administration has been able to achieve the service review target reductions of $500 thousand in 2016 and $1.0
million in 2017. Additionally, the service review targets of $1.5 million in 2018 and $1.0 million in 2019 still must be achieved.

Table 2 2016-2019 Multi-Year Operating Budget


(excludes budget amendments 7 and 8)

Net Budget ($000's) Average Avg. Annual


2018 Multi-Year Budget Update Annual Rate Payer
2016 2017 2018 2019 % Impact
1

Approved % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8% $ 76


Approved Net Budget (Tax Levy) 536,434 556,980 572,887 589,551
Cumulative Amendment (632) 191
Revised Net Budget (Tax Levy) 536,434 556,980 572,255 589,743
Incremental Net Increase/(Decrease) (632) 823
Revised % Increase From Rates 2.5% 2.9% 2.7% 3.1% 2.8% $ 76
Subject to rounding
1. Average rate payer owning a home with an assessed value of $221,000 in 2015 (excludes the Education tax portion).

4.0%
20162019MultiYearBudget
2.9% 3.1%
3.0% 2.5% 2.7%
2.9% 2.9% 2.9%
2.0% 2.5%
2016 2017 2018 2019
Approved Revised

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If all recommended budget amendments are approved by Municipal Council, the average annual tax levy from rates from 2016-2019
would increase from 2.8% to 3.0% (Table 3). The increase is primarily due to proposed Provincial legislation related to minimum
wage that was not known when the multi-year budget was initially approved and an in-camera corporate budget matter that is also
beyond the control of Civic Administration. These unanticipated issues are putting budgetary pressures on the tax levy in 2018 and
2019 as illustrated in Figure 1 and Figure 2 on the next page.

Table 3 2016-2019 Multi-Year Operating Budget


(includes all recommended budget amendments)

Net Budget ($000's) Average Avg. Annual


2018 Multi-Year Budget Update Annual Rate Payer
2016 2017 2018 2019 % Impact
1

Approved % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8% $ 76


Approved Net Budget (Tax Levy) 536,434 556,980 572,887 589,551
Cumulative Amendment 2,275 4,700
Revised Net Budget (Tax Levy) 536,434 556,980 575,162 594,252
Incremental Net Increase/(Decrease) 2,275 2,425
Revised % Increase From Rates 2.5% 2.9% 3.3% 3.3% 3.0% $ 82
Subject to rounding
1. Average rate payer owning a home with an assessed value of $221,000 in 2015 (excludes the Education tax portion).

4.0%
20162019MultiYearBudget
3.3% 3.3%
2.9%
3.0% 2.5%
2.9% 2.9% 2.9%
2.0% 2.5%
2016 2017 2018 2019
Approved Revised

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Operating Budget Amendments

BudgetAmendmentCase#1NewCouncilDirection ($000's)
LondonMusicIndustryDevelopmentOffice 2016 2017 2018 2019
Expenditure Inc/(Dec) 150 150
Revenue (Inc)/Dec (150) (150)
Net Requested Tax Levy (Cumulative) - -
Recommended

Incremental Net Increase/(Decrease) - -


Rationale:
In September 2014, Municipal Council endorsed the London Music Strategy, developed by a volunteer Music Industry Task
Force. Municipal Council also approved $300 thousand in funding for a two year pilot to create the London Music Office.
The two year pilot will be complete in November 2017.
On May 30, 2017, as a result of a review of the London Music Industry Initiative Pilot, Municipal Council unanimously
approved the recommendation to bring forward a business case during the 2018 Annual Budget Update.
To continue the London Music Industry Development Office on a two year temporary basis, gross expenditures of $150
thousand per year are required. A strategic use of the Economic Development Reserve Fund is recommended in 2018 and
2019 resulting in no impact to the tax levy.

BudgetAmendmentCase#2NewCouncilDirection ($000's)
Councillors'AnnualCompensation 2016 2017 2018 2019
Expenditure Inc/(Dec) 245
Recommended

Revenue (Inc)/Dec -
Net Requested Tax Levy (Cumulative) 245
Incremental Net Increase/(Decrease) 245
Rationale:
At its meeting on August 22, 2017, Municipal Council, on the recommendation of the 2016 Council Compensation Review
Task Force, resolved that effective the next term of Council the annual compensation for serving as a Ward Councillor be set
at the 2016 median full-time employment income for Londoners.

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BudgetAmendmentCase#3CostDriver ($000's)
UTRCA10YearEnvironmentalTargetsStrategicPlan 2016 2017 2018 2019
Expenditure Inc/(Dec) 191 400
Revenue (Inc)/Dec - -
Net Requested Tax Levy (Cumulative) 191 400
Incremental Net Increase/(Decrease) 191 209
Rationale:
Recommended

The UTRCA Board of Directors approved its Environmental Targets Strategic Plan in June 2016. This plan proposes the
most significant programming change in the Authoritys nearly 70 year history. These Environmental Targets are designed to
advance achievement of the UTRCA's goals:
1. Protecting people and their property from flooding and erosion;
2. Protecting and improving water quality;
3. Managing and expanding natural areas; and
4. Providing outdoor recreation/education opportunities.
In total, $4 million in new funding to support new staff and programs will be required annually to support this work. This new
funding is being sought from all four of the UTRCAs traditional revenue streams in the following proportions: senior
government funding (28%), municipal funding (28%), user fees (30%) and special contracts (14%). Municipal levy funding is
being requested from all 17 member municipalities with a planned four year phase-in (2017- 2020).
New municipal funding of $179 thousand was approved by Municipal Council on a permanent basis during the 2017 Annual
Budget Update, as per the Strategic Plans proposed budget.

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BudgetAmendmentCase#4CostDriver ($000's)
DundasPlaceOngoingPlaceManagement 2016 2017 2018 2019
Expenditure Inc/(Dec) 75 475
Revenue (Inc)/Dec (75) (100)
Net Requested Tax Levy (Cumulative) - 375
Recommended

Incremental Net Increase/(Decrease) - 375


Rationale:
The Dundas Place project aims to transform Dundas Street between Wellington Street and Thames River into a flexible
street, to become a prominent public destination and programming space for Londoners and visitors.
While the project will be transformational for the Downtown, a three-pronged "place management" approach, integrating
maintenance, security, and activation, will be critical to the successful operation of this space over time.
Gross expenditures of $75 thousand and $475 thousand are required in 2018 and 2019 respectively for costs associated
with this three-pronged approach, as well as management of the space, partially offset with a strategic use of the Economic
Development Reserve Fund in 2018 ($75 thousand) and 2019 ($100 thousand).

BudgetAmendmentCase#5CostDriver ($000's)
EliminationoftheAnnualPaymenttotheStillerCentre 2016 2017 2018 2019
Expenditure Inc/(Dec) (224) (228)
Revenue (Inc)/Dec - -
Net Requested Tax Levy (Cumulative) (224) (228)
Recommended

Incremental Net Increase/(Decrease) (224) (4)


Rationale:
The City of London (the City) has an agreement with University of Western Ontario Research and Development Park
(Western Research Park) for the City to provide the Stiller Centre for Technology Commercialization with an annual
contribution from June 30, 2010 through April 20, 2028.
In September 2017, Western Research Park provided the City with formal notice that they wished to terminate the
agreement effective April 30, 2018, as Stiller Centre no longer required the annual subsidy from the City.
Western Research Park wishes to extend its sincere appreciation to the City for their long-standing and unwavering
commitment to the Stiller Centre for Technology Commercialization, its vision and its mission.

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BudgetAmendmentCase#6RevenueDriver ($000's)
IncreasedOntarioWorksAdministrationSubsidy 2016 2017 2018 2019
Expenditure Inc/(Dec) - -
Recommended

Revenue (Inc)/Dec (600) (600)


Net Requested Tax Levy (Cumulative) (600) (600)
Incremental Net Increase/(Decrease) (600) -
Rationale:
Londons share of Ontario Works administration subsidy increased for 2017 and 2018 as a result of a higher average
portion of total provincial caseload from October 2014 to September 2016. This increased subsidy exceeds the amount that
was anticipated and built into the approved 2016-2019 Multi-Year Budget.

BudgetAmendmentCase#7NewRegulation ($000's)
ProposedMinimumWageIncreases 2016 2017 2018 2019
Expenditure Inc/(Dec) 1,584 2,207
Revenue (Inc)/Dec (131) (183)
Net Requested Tax Levy (Cumulative) 1,453 2,024
Recommended

Incremental Net Increase/(Decrease) 1,453 571


Rationale:
The Ontario government announced its intention to increase the minimum wage from $11.60/hour to $14.00/hour effective
January 1, 2018 (20.7% increase) and $15.00/hour effective January 1, 2019 (7.1% increase).
As of September 2017, the proposed legislation, Bill 148 - Fair Workplaces, Better Jobs Act, 2017, is currently draft and the
government is engaging in consultation throughout the Province to obtain feedback on the proposed increases to the
minimum wage from employees, employers and other interested parties.
An operating budget increase is recommended to reflect the proposed increase, partially offset by limited user fee
increases.

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BudgetAmendmentCase#8"InCamera" ($000's)
ConfidentialMatter"InCamera" 2016 2017 2018 2019
Expenditure Inc/(Dec) 1,455 2,485
Recommended

Revenue (Inc)/Dec - -
Net Requested Tax Levy (Cumulative) 1,455 2,485
Incremental Net Increase/(Decrease) 1,455 1,030
Rationale:
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.

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2016-2019 Multi-Year Capital Budget and Ten Year Capital Plan
(Including Capital Amendments)

Capital Budget Summary ($000's)


2016-2019 Multi-Year Budget 2020-2025 2016-2025
2016 2017 2018 2019 Total Forecast Capital Plan

Total Approved Budget 213,725 268,521 167,495 173,100 822,841 1,314,346 2,137,187
Total Revised Budget (submitted October 30, 2017) 213,725 268,521 159,336 192,232 833,814 1,373,619 2,207,433
1
Total Capital Expense Increase/(Decrease) - - (8,159) 19,132 10,973 59,273 70,246
Sources of Financing
Capital Levy (CL) - - - - - - -
Debenture (D) - - (3,800) 8,387 4,587 27,237 31,824
Reserve Fund (RF) - - 852 855 1,707 6,234 7,941
Other (O) - - - - - - -
Non-tax Supported (NTS) - - (5,211) 9,890 4,679 25,802 30,481
Total Revenue Increase/(Decrease) - - (8,159) 19,132 10,973 59,273 70,246
Net Tax Levy Impact - - - - - - -
Subject to rounding
Note 1: Includes the recommended budget amendments (4, 9-19) supported by budget amendment cases and 2020-2025 budget adjustments that do not require a budget
amendment case since there is no impact to 2016-2019.

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Capital Budget by Classification ($000's)


2016-2019 Multi-Year Budget 2020-2025 2016-2025
2016 2017 2018 2019 Total Forecast Capital Plan

Lifecycle Renewal Capital Budget


Lifecycle Renewal Approved Budget 86,942 77,707 69,856 77,640 312,145 538,176 850,321
1
Lifecycle Renewal Revised Budget 86,942 77,707 70,783 78,570 314,002 540,359 854,361
Increase/(Decrease) - - 927 930 1,857 2,183 4,040
Growth Capital Budget
Growth Approved Budget 118,979 129,819 80,841 86,005 415,644 598,106 1,013,750
1
Growth Revised Budget 118,979 129,819 78,201 103,627 430,626 648,473 1,079,099
Increase/(Decrease) - - (2,640) 17,622 14,982 50,367 65,349
Service Improvement Capital Budget
Service Improvement Approved Budget 7,804 60,995 16,798 9,455 95,052 178,064 273,116
1
Service Improvement Revised Budget 7,804 60,995 10,352 10,035 89,186 184,787 273,973
Increase/(Decrease) - - (6,446) 580 (5,866) 6,723 857

Total Capital Expense Increase/(Decrease) - - (8,159) 19,132 10,973 59,273 70,246


Subject to rounding
Note 1: Includes the recommended budget amendments (4, 9-19) supported by budget amendment cases and 2020-2025 budget adjustments that do not require a budget
amendment case since there is no impact to 2016-2019.

Page 21

Lifecycle Renewal Capital Budget ($000's)
2016-2019 Multi-Year Budget 2020-2025 2016-2025
2016 2017 2018 2019 Total Forecast Capital Plan

Lifecycle Renewal Approved Budget 86,942 77,707 69,856 77,640 312,145 538,176 850,321
Lifecycle Renewal Revised Budget 86,942 77,707 70,783 78,570 314,002 540,359 854,361
Increase/(Decrease) - - 927 930 1,857 2,183 4,040

Sources of Financing
Capital Levy (CL) 469 403 872 1,269 2,141
Debenture (D) (788) (403) (1,191) (3,820) (5,011)
Reserve Fund (RF) 852 855 1,707 4,234 5,941
Other (O) - - -
Non-tax Supported (NTS) 394 75 469 500 969
Total Revenue - - 927 930 1,857 2,183 4,040
Net Tax Levy Impact - - - - - - -

2016-2019 Multi-Year Budget Amendments (Business Cases Submitted)


2016-2019 Multi-Year Budget 2020-2025 2016-2025
2016 2017 2018 2019 Total Forecast Capital Plan

Budget Amendment Case #9

Invasive Species Management Strategy


Rationale: Increased funding for invasive species management and 350 350 700 - 700
removal.
Source of Financing: Woodland Acquisition & Mgmt. RF RF RF
Budget Amendment Case #10
London Police Service - Capital Plan Changes
Rationale: Changes to the London Police Service capital plan to
Amendments

address increased funding for replacement vehicles and information 77 80 157 574 731
technology storage server, partially offset by a reduction from a
change in equipment requirements.
Source of Financing: Capital Levy, Police Vehicle Replac. RF RF RF CL, RF
Budget Amendment Case #11
Exterior Lighting Redesign & Replacement for all London &
Middlesex Housing Corporation (LMHC) Sites
Rationale: Replacement and redesign of exterior lighting at LMHC
500 500 1,000 - 1,000
sites is required to replace these systems which are at, or
approaching, the end of their useful lives, improve efficiency of
lighting system components and to improve site safety.
Source of Financing: Public Housing Major Upgrades RF & Other RF, O RF, O

Page 22

Lifecycle Renewal Capital Budget ($000's) (continued)

2016-2019 Multi-Year Budget 2020-2025 2016-2025


2016 2017 2018 2019 Total Forecast Capital Plan

Total 2016-2019 Budget Amendments (Inc/(Dec)) - - 927 930 1,857 574 2,431

2020-2025 Budget Amendments - Business Cases Not Required (Inc/(Dec)) 1,609 1,609

Total Lifecycle Renewal Budget Amendments (Inc/(Dec)) - - 927 930 1,857 2,183 4,040

2020-2025 Budget Amendments (Business Cases Not Required)


2020 2021 2022 2023 2024 2025 Total
London Convention Centre Capital Projects Realigning
Rationale: Refinements to the capital plan resulting in a small (500) 520 20
increase for event furniture and fixtures.
Source of Financing: Convention Centre RF RF RF
Parking Technology System
Rationale: Additional funding required in 2022 to address lifecycle 500 500
renewal requirements of the parking technology system.
Source of Financing: Non-Tax Supported NTS
Vehicle and Equipment Replacements
Rationale: Additional funding required for replacement of vehicle
379 22 (446) 12 444 678 1,089
and equipment based on ongoing market evaluations, cost
experience and annually adjusted replacement value research.
Source of Financing: Vehicle & Equipment RF RF RF RF RF RF RF

Total Lifecycle Renewal 2020-2025 Budget Amendments


379 22 54 12 (56) 1,198 1,609
(Inc/(Dec))

Page 23

Growth Capital Budget ($000's)


2016-2019 Multi-Year Budget 2020-2025 2016-2025
2016 2017 2018 2019 Total Forecast Capital Plan

Growth Approved Budget 118,979 129,819 80,841 86,005 415,644 598,106 1,013,750
Growth Revised Budget 118,979 129,819 78,201 103,627 430,626 648,473 1,079,099
Increase/(Decrease) - - (2,640) 17,622 14,982 50,367 65,349
Sources of Financing
Capital Levy (CL) (23) 47 24 29 53
Debenture (D) 2,988 7,760 10,748 25,036 35,784
Reserve Fund (RF) - - -
Other (O) - - -
Non-tax Supported (NTS) (5,605) 9,815 4,210 25,302 29,512
Total Revenue - - (2,640) 17,622 14,982 50,367 65,349
Net Tax Levy Impact - - - - - - -

2016-2019 Multi-Year Budget Amendments (Business Cases Submitted)


2016-2019 Multi-Year Budget 2020-2025 2016-2025
2016 2017 2018 2019 Total Forecast Capital Plan

Budget Amendment Case #12


Realignment of Growth Parks Projects
Rationale: Changes to the timing of various parks projects to align
(1,617) 807 (810) 810 -
with changes in timing of subdivision development, noting that there
Amendments

is no additional funding requirement to the 10 year capital plan.


Source of Financing: Capital Levy, Debt, Non-Tax Supported CL, D, NTS CL, D, NTS CL, D, NTS
Budget Amendment Case #13
Deferral of New Fire Station 15
Rationale: Deferral of new fire station to be located in the southeast
area of the City from 2020 to 2022, as well as increased funding to (200) (200) 611 411
address higher costs resulting from recent trends in facility
construction pricing.
Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS

Page 24
Growth Capital Budget ($000's) (continued)
2016-2019 Multi-Year Budget 2020-2025 2016-2025
2016 2017 2018 2019 Total Forecast Capital Plan

Budget Amendment Case #14


Adelaide Street - CPR Grade Separation
Rationale: Project previously identified beyond the 10 year plan is
7,100 12,800 19,900 40,000 59,900
being advanced to align with the rapid transit system plan.
Construction is now planned to occur as early as 2021.
Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS
Budget Amendment Case #15
Amendments

Western Road Widening - Platts Lane to Oxford Street


Rationale: Additional funding required due to project modifications 3,500 3,500 - 3,500
resulting from the detailed design.
Source of Financing: Debt, Non-Tax Supported D, NTS
Budget Amendment Case #16
Realignment of Growth Transportation Projects
Rationale: Changes to the timing of various Transportation projects
(11,623) 4,215 (7,408) 7,408 -
resulting in no additional funding requirement to the 10 year capital
plan.
Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS

Total 2016-2019 Budget Amendments (Inc/(Dec)) - - (2,640) 17,622 14,982 48,829 63,811

2020-2025 Budget Amendments - Business Cases Not Required (Inc/(Dec)) 1,538 1,538

Total Growth Budget Amendments (Inc/(Dec)) - - (2,640) 17,622 14,982 50,367 65,349

Page 25

Growth Capital Budget ($000's) (continued)

2020-2025 Budget Amendments (Business Cases Not Required)


2020 2021 2022 2023 2024 2025 Total
Northwest Branch Library Update
Rationale: Increased funding to address higher costs from recent 1,232 1,232
trends in facility construction pricing.
Source of Financing: Debt, Non-Tax Supported D, NTS
Additional Funding For New Spray Pads
Rationale: Increased funding to address higher costs from recent 78 97 55 76 306
trends in construction pricing.
Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS D, NTS
Realignment of Growth Transportation Projects Only
Impacting 2020-2025
Rationale: Changes to the timing of various Transportation projects 400 415 (525) (290) -
resulting in no additional funding requirement to the 10 year capital
plan.
Source of Financing: Debt, Non-Tax Supported D, NTS D, NTS D, NTS D, NTS

Total Growth 2020-2025 Budget Amendments (Inc/(Dec)) 1,710 415 (428) (235) - 76 1,538

Page 26
Service Improvement Capital Budget ($000's)
2016-2019 Multi-Year Budget 2016-2025
2020-2025
Capital
2016 2017 2018 2019 Total Forecast
Plan
Service Improvement Approved Budget 7,804 60,995 16,798 9,455 95,052 178,064 273,116
Service Improvement Revised Budget 7,804 60,995 10,352 10,035 89,186 184,787 273,973
Increase/(Decrease) - - (6,446) 580 (5,866) 6,723 857
Sources of Financing
Capital Levy (CL) (446) (450) (896) (1,298) (2,194)
Debenture (D) (6,000) 1,030 (4,970) 6,021 1,051
Reserve Fund (RF) - 2,000 2,000
Other (O) - - -
Non-tax Supported (NTS) - - -
Total Revenue - - (6,446) 580 (5,866) 6,723 857
Net Tax Levy Impact - - - - - - -

2016-2019 Multi-Year Budget Amendments (Business Cases Submitted)


2016-2019 Multi-Year Budget 2016-2025
2020-2025
Capital
2016 2017 2018 2019 Total Forecast
Plan
Budget Amendment Case #4
Dundas Place Field House
Rationale: Increased funding for a physical indoor space (field
280 280 - 280
house) accessible on Dundas Place required to support the day-to-
Amendments

day operations of the Dundas Flexible Street.


Source of Financing: Debt D
Budget Amendment Case #17
Farquharson, Glen Cairn & Silverwoods Arenas
Decommissioning
54 54 126 180
Rationale: Increased funding to address higher costs from recent
trends in facility construction pricing.
Source of Financing: Capital Levy CL CL

Page 27

Service Improvement Capital Budget ($000's) (continued)

2016-2019 Multi-Year Budget 2016-2025


2020-2025
Capital
2016 2017 2018 2019 Total Forecast
Plan

Budget Amendment Case #18


Relocation of Existing Resources to New Fire Station 16
Rationale: Deferral of new fire station to be located in the
Wharncliffe area south of Springbank Dr. toward Commissioners
(500) 300 (200) 597 397
Rd. W. from 2020 to 2022, as well as increased funding to address
higher costs resulting from recent trends in facility construction
Amendments

pricing.
Source of Financing: Capital Levy, Debt CL D D

Budget Amendment Case #19


Western Road & Philip Aziz Ave. Improvements Deferred
Rationale: Road improvements at Western Road and Philip Aziz
deferred from 2018 to 2020 to enable coordination with Rapid (6,000) (6,000) 6,000 -
Transit improvements that are in development through the Shift
Environmental Assessment.

Source of Financing: Debt D D

Total 2016-2019 Budget Amendments (Inc/(Dec)) - - (6,446) 580 (5,866) 6,723 857

2020-2025 Budget Amendments - Business Cases Not Required (Inc/(Dec)) - -

Total Service Improvement Budget Amendments (Inc/(Dec)) - - (6,446) 580 (5,866) 6,723 857

2020-2025 Budget Amendments (Business Cases Not Required)


2020 2021 2022 2023 2024 2025 Total
Replacement & Relocation of Fire Training Tower
Rationale: Project has been adjusted to reflect the timing of when
(1,250) (250) (2,000) (1,196) 4,696 -
funds will be required for design and construction (construction
planned for 2024), noting that no additional funding is required.
Source of Financing: Capital Levy, Debt D D CL, D CL, D CL, D

Total Service Improvement 2020-2025 Budget Amendments


(1,250) (250) (2,000) (1,196) 4,696 - -
(Inc/(Dec))

Page 28

APPENDIXA
OPERATINGBUDGET
OVERVIEW

Page 29

2016-2019 OPERATING BUDGET OVERVIEW
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
2016 2017 2018
2
2019
2 2016-2019
Operating Budget Average %
Expense Net Expense Net Expense Net Expense Net Inc/(Dec)
3

Approved % Increase From Rates 2.5% 2.9% 2.9% 2.9% 2.8%


1
Approved Budget 840,957 536,434 887,114 556,980 912,592 572,887 930,459 589,551
Cumulative Amendment 3,231 2,275 5,733 4,700
Revised Budget 840,957 536,434 887,114 556,980 915,824 575,162 936,192 594,252
Revised % Increase From Rates 2.5% 2.9% 3.3% 3.3% 3.0%
Subject to rounding
Notes:
1. Amounts reported include housekeeping budget adjustments.
2. Expense and Net amounts include the impact of 2018-2019 recommended budget amendments 1 through 8.
3. Represents the average annual 2016-2019 percent increase from rates.

Page 30

2016-2019 OPERATING BUDGET OVERVIEW
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
1
2016-2019 2016 2017 Annual Update 2016-2019 2018-2019
Approved Approved Approved 2018 2019 Revised Net
SERVICE
Net Net Net Amended Amended Net Budget
1 1 1 Net Net
Budget Budget Budget Budget Inc/(Dec)
Budget Budget
2
Culture Services 97,929 23,918 24,326 24,671 25,014 97,929 -
2
Economic Prosperity 47,712 11,845 11,919 11,739 11,756 47,260 (452)
2
Environmental Services 87,007 20,693 21,584 22,328 22,993 87,598 591
Parks, Recreation & Neighbourhood Services 133,483 31,979 33,372 33,854 34,278 133,483 -
2
Planning & Development Services 27,817 6,886 6,874 7,033 7,399 28,192 375
Protective Services 672,118 159,188 167,139 171,099 174,693 672,118 -
2
Social & Health Services 269,284 67,829 67,830 65,645 66,779 268,084 (1,200)
Transportation Services 267,524 64,056 66,392 67,857 69,219 267,524 -
Corporate, Operational & Council Services 2 239,902 56,662 61,131 61,244 61,109 240,146 245
2
Financial Management 413,075 93,377 96,412 109,691 121,012 420,492 7,417
PROPERTY TAX LEVY SUPPORTED
BUDGET 2,255,853 536,434 556,980 575,162 594,252 2,262,828 6,975
Subject to rounding
Notes:
1. Amounts reported include housekeeping budget adjustments.
2. Amounts reported include the impact of 2018-2019 recommended budget amendments 1 through 8.

Page 31
2016-2019 OPERATING BUDGET OVERVIEW
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
1
2016-2019 2016 2017 Annual Update 2016-2019 2018-2019
Approved Approved Approved 2018 2019 Revised Net
SERVICE
Net Net Net Amended Amended Net Budget
1 1 1 Net Net
Budget Budget Budget Budget Inc/(Dec)
Budget Budget
CULTURE SERVICES
Centennial Hall 659 138 157 173 191 659 -
2
Arts, Culture & Heritage Advisory & Funding 8,850 2,172 2,212 2,218 2,248 8,850 -
Museum London 6,706 1,635 1,665 1,690 1,716 6,706 -
Eldon House 1,126 271 279 286 290 1,126 -
Heritage 745 185 177 188 194 745 -
London Public Library 79,844 19,518 19,835 20,116 20,375 79,844 -
TOTAL CULTURE SERVICES 97,929 23,918 24,326 24,671 25,014 97,929 -
ECONOMIC PROSPERITY
Business Attraction & Retention3 36,321 9,069 9,078 8,860 8,862 35,869 (452)
Community Improvement / BIA 934 227 232 237 238 934 -
London Convention Centre 2,432 589 612 615 616 2,432 -
Tourism London 8,025 1,961 1,998 2,028 2,039 8,025 -
Covent Garden Market - - - - - - -
TOTAL ECONOMIC PROSPERITY 47,712 11,845 11,919 11,739 11,756 47,260 (452)
Subject to rounding
Notes:
1. Amounts reported include housekeeping budget adjustments.
2. Amounts reported include the impacts of budget amendment #1 - London Music Industry Development Office.
3. Amounts reported include the impacts of budget amendment #5 - Elimination of the Annual Payment to the Stiller Centre.

Page 32

2016-2019 OPERATING BUDGET OVERVIEW
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
1
2016-2019 2016 2017 Annual Update 2016-2019 2018-2019
Approved Approved Approved 2018 2019 Revised Net
SERVICE
Net Net Net Amended Amended Net Budget
1 1 1 Net Net
Budget Budget Budget Budget Inc/(Dec)
Budget Budget
ENVIRONMENTAL SERVICES
Kettle Creek Conservation Authority 1,938 436 467 500 535 1,938 -
Lower Thames Valley Conservation Authority 644 153 158 164 169 644 -
2
Upper Thames River Conservation Authority 12,782 2,926 3,240 3,476 3,730 13,373 591
Environmental Action Programs & Reporting 3,101 765 776 780 780 3,101 -
Garbage Recycling & Composting 68,542 16,412 16,942 17,408 17,780 68,542 -
TOTAL ENVIRONMENTAL SERVICES 87,007 20,693 21,584 22,328 22,993 87,598 591
PARKS, RECREATION & NEIGHBOURHOOD SERVICES
Neighbourhood & Recreation Services 81,213 19,445 20,277 20,609 20,882 81,213 -
Parks & Urban Forestry 52,270 12,535 13,096 13,245 13,395 52,270 -
TOTAL PARKS, RECREATION &
NEIGHBOURHOOD SERVICES 133,483 31,979 33,372 33,854 34,278 133,483 -
PLANNING & DEVELOPMENT SERVICES
Building Approvals (3,381) (725) (910) (884) (862) (3,381) -
3
Planning Services 14,115 3,421 3,517 3,586 3,965 14,490 375
Development Services 17,083 4,189 4,267 4,331 4,296 17,083 -
TOTAL PLANNING & DEVELOPMENT
SERVICES 27,817 6,886 6,874 7,033 7,399 28,192 375
Subject to rounding
Notes:
1. Amounts reported include housekeeping budget adjustments.
2. Amounts reported include the impacts of budget amendment #3 - UTRCA 10 Year Environmental Targets Strategic Plan.
3. Amounts reported include the impacts of budget amendment #4 - Dundas Place - Ongoing Place Management.
Page 33
2016-2019 OPERATING BUDGET OVERVIEW
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
1
2016-2019 2016 2017 Annual Update 2016-2019 2018-2019
Approved Approved Approved 2018 2019 Revised Net
SERVICE
Net Net Net Amended Amended Net Budget
1 1 1 Net Net
Budget Budget Budget Budget Inc/(Dec)
Budget Budget
PROTECTIVE SERVICES
Animal Services 7,046 1,708 1,740 1,780 1,819 7,046 -
By-Law Enforcement & Property Standards 5,285 1,239 1,314 1,391 1,341 5,285 -
Corporate Security & Emergency Management 9,443 2,228 2,377 2,408 2,430 9,443 -
Fire Services 237,824 56,047 59,667 59,764 62,346 237,824 -
London Police Services 412,520 97,966 102,042 105,754 106,758 412,520 -
TOTAL PROTECTIVE SERVICES 672,118 159,188 167,139 171,099 174,693 672,118 -
SOCIAL & HEALTH SERVICES
Housing Services 46,736 11,837 11,779 11,598 11,523 46,736 -
Housing Development Corporation 9,594 2,552 2,481 2,278 2,283 9,594 -
London & Middlesex Housing Corporation 38,877 8,992 9,501 9,944 10,440 38,877 -
Long Term Care 20,696 5,030 5,147 5,218 5,301 20,696 -
Land Ambulance 57,356 13,219 14,427 14,742 14,967 57,356 -
Middlesex-London Health Unit 24,380 6,095 6,095 6,095 6,095 24,380 -
2
Social & Community Support Services 71,646 20,105 18,401 15,770 16,170 70,446 (1,200)
TOTAL SOCIAL & HEALTH SERVICES 269,284 67,829 67,830 65,645 66,779 268,084 (1,200)
Subject to rounding
Notes:
1. Amounts reported include housekeeping budget adjustments.
2. Amounts reported include the impacts of budget amendment #6 - Increased Ontario Works Administration Subsidy.

Page 34
2016-2019 OPERATING BUDGET OVERVIEW
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
1
2016-2019 2016 2017 Annual Update 2016-2019 2018-2019
Approved Approved Approved 2018 2019 Revised Net
SERVICE
Net Net Net Amended Amended Net Budget
1 1 1 Net Net
Budget Budget Budget Budget Inc/(Dec)
Budget Budget
TRANSPORTATION SERVICES
Parking (12,771) (3,314) (3,237) (3,138) (3,081) (12,771) -
Public Transit (LTC) 120,927 28,962 29,972 30,731 31,263 120,927 -
Roadways 159,368 38,409 39,658 40,264 41,038 159,368 -
TOTAL TRANSPORTATION SERVICES 267,524 64,056 66,392 67,857 69,219 267,524 -
CORPORATE, OPERATIONAL & COUNCIL SERVICES
Corporate Services 216,837 50,781 54,211 55,625 56,219 216,837 -
Corporate Planning & Administration 5,493 2,195 2,380 955 (37) 5,493 -
Council Services 2 13,764 3,409 3,440 3,454 3,705 14,008 245
Public Support Services 3,808 276 1,101 1,210 1,221 3,808 -
TOTAL CORPORATE, OPERATIONAL &
COUNCIL SERVICES 239,902 56,662 61,131 61,244 61,109 240,146 245
Subject to rounding
Notes:
1. Amounts reported include housekeeping budget adjustments.
2. Amounts reported include the impacts of budget amendment #2 - Councillors' Annual Compensation.

Page 35
2016-2019 OPERATING BUDGET OVERVIEW
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
1
2016-2019 2016 2017 Annual Update 2016-2019 2018-2019
Approved Approved Approved 2018 2019 Revised Net
SERVICE
Net Net Net Amended Amended Net Budget
1 1 1 Net Net
Budget Budget Budget Budget Inc/(Dec)
Budget Budget
FINANCIAL MANAGEMENT
Corporate Financing
Capital Financing
Capital Levy 164,834 37,271 40,760 42,176 44,626 164,834 -
Debt Servicing 152,800 37,575 37,255 38,256 39,715 152,800 -
Contribution to Capital Reserve Funds 88,140 18,807 21,244 23,444 24,644 88,140 -
Other Related Financing
2&3
Contingencies 65,440 13,613 12,116 19,925 27,202 72,857 7,417
Other Corporate Revenues & Expenditures (81,923) (19,832) (20,899) (20,078) (21,114) (81,923) -
Finance 23,784 5,943 5,935 5,968 5,938 23,784 -
TOTAL FINANCIAL MANAGEMENT 413,075 93,377 96,412 109,691 121,012 420,492 7,417
Subject to rounding
Notes:
1. Amounts reported include housekeeping budget adjustments.
2. Amounts reported include the impacts of budget amendment #7 - Proposed Minimum Wage Increases.
3. Amounts reported include the impacts of budget amendment #8 - Confidential Matter - "In-Camera".

Page 36
APPENDIXB
STAFFINGCHANGESOVERVIEW

Page 37
2016-2019 STAFFING CHANGES OVERVIEW
2018 ANNUAL BUDGET UPDATE

Full-Time Employees (FT) Full-Time Equivalents (FTE)


Recommended Staffing Changes 2016 2017 2018 2019 2016 2017 2018 2019
1
Total Approved Staffing 3,676 3,728 3,736 3,743 4,991.3 5,088.2 5,112.3 5,109.2
Budget Amendment 1 - London Music Industry Development Office
Rationale: A position is requested to continue the London Music
- - 1.0 1.0
Amendments

Industry Office on a two year temporary basis.


Budget Amendment 3 - Upper Thames River Conservation Authority (UTRCA)
Rationale: These positions are required to fulfill the newly adopted
2 4 2.0 4.0
UTRCA Environmental Targets Strategic Plan.
Budget Amendment 4 - Dundas Place - Ongoing Place Management
Rationale: A temporary position is requested to support the
- - 1.0 1.0
successful operation of Dundas Place.
Cumulative Increase - Amendments 2 4 4.0 6.0
Note 1: Total Approved Staffing numbers include positions approved as part of the 2016-2019 multi-year budget, 2017 approved Assessment Growth
business cases and housekeeping budget adjustments.

Page 38
2016-2019 STAFFING CHANGES OVERVIEW (CONTINUED)
2018 ANNUAL BUDGET UPDATE

Full-Time Employees (FT) Full-Time Equivalents (FTE)


Other Staffing Changes 2016 2017 2018 2019 2016 2017 2018 2019
The following staffing changes have been accommodated in the 2016-2019 multi-year budget with no net budget impact:
2
Building Approvals
Rationale: Staffing changes funded through building permit revenues
required for the following:
To input permit applications and other support functions;
To perform fire protection reviews and inspections transferred from 4 4 2.2 2.2
Fire to Building Approvals (2 positions); and
To ensure Building Approvals can meet Provincially legislated time
frames for building inspections.
2
Municipal Law Enforcement
Other Staffing Changes

Rationale: These positions are required to support property


standards inspections. Additional revenue from the initial applications 2 2 0.5 0.5
fee will support the cost of these positions.
2
Homeless Prevention
Rationale: This position is funded by Provincial and Federal funding
for Homeless Prevention through 2019/20. This position will assist
1 1 - -
with the effective implementation of the Homeless Prevention
Implementation Plan approved by Council.
2
Information Technology Services (ITS)
Rationale: These positions are required to support Database
Administration and Computing Infrastructure & Data functions.
2 2 1.0 1.0
Funding to support these positions is accomodated within the ITS
existing budget.
Facilities - Energy Management
Rationale: This position is required to review utility consumption data
and complete other energy management related work. It will be 1 1 1.0 1.0
funded through the Embedded Energy Manager Incentive Program.
Cumulative Increase - Other Staffing Changes 10 10 4.7 4.7
Cumulative Increase - Amendments & Other Staffing Changes 12 14 8.7 10.7
Revised Staffing Total 3,676 3,728 3,748 3,757 4,991.3 5,088.2 5,121.0 5,119.9
Incremental Increase - Amendments & Other Staffing Changes 12 2 8.7 2.0
Note 2: FTE staffing changes are less than FT because a portion of the FTE was previously approved.
Page 39
APPENDIXC
CAPITALBUDGETOVERVIEW

Page 40
2016-2019 CAPITAL BUDGET OVERVIEW WITH FORECAST FOR 2020-2025
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
CAPITAL BUDGET BY CLASSIFICATION
Annual Update 2018-2019 2020-2025 Total
2016 2017 Revised 2020-2025
Budget Budget Revised
Classification Approved Approved 2018 2019 2016-2019 Revised
1 1 Increase/ Increase/ Ten Year
Budget Budget Amended Amended Budget Forecast
(Decrease) (Decrease) Plan
Lifecycle Renewal 86,942 77,707 70,783 78,570 314,002 1,857 540,359 2,183 854,361
Growth 118,979 129,819 78,201 103,627 430,626 14,982 648,473 50,367 1,079,099
Service Improvement 7,804 60,995 10,352 10,035 89,186 (5,866) 184,787 6,723 273,973
2-3
Total Expenditures 213,725 268,521 159,336 192,232 833,814 10,973 1,373,619 59,273 2,207,433
Subject to rounding
Notes:
1. Amounts reported in the 2016 and 2017 Capital Budget include housekeeping budget adjustments.
2. The 2016 to 2025 Capital Budget includes Non-TCA expenditures that will not result in the creation of a tangible asset (having physical substance). Non-TCA
expenditures are reported annually through the Financial Statement reporting process.
3. Includes the recommended budget amendments (4, 9-19) supported by budget amendment cases and 2020-2025 budget adjustments that do not require a
budget amendment case since there is no impact to 2016-2019.

Page 41
2016-2019 CAPITAL BUDGET OVERVIEW WITH FORECAST FOR 2020-2025
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
CAPITAL BUDGET BY SERVICE PROGRAM
Annual Update 2018-2019 2020-2025 Total
2016 2017 Revised 2020-2025
Budget Budget Revised
Service Program Approved Approved 2018 2019 2016-2019 Revised
1 1 Increase/ Increase/ Ten Year
Budget Budget Amended Amended Budget Forecast
(Decrease) (Decrease) Plan
Culture Services 4,638 2,800 2,137 6,540 16,115 - 17,662 1,232 33,777

Economic Prosperity 6,746 6,305 10,973 6,421 30,445 - 53,993 20 84,438

Environmental Services 6,248 2,415 915 4,755 14,333 - 64,730 - 79,063


Parks, Recreation &
42,881 29,461 26,144 24,508 122,994 (55) 96,240 1,242 219,234
Neighbourhood Services
Planning & Development
2,328 1,569 125 655 4,677 280 4,125 - 8,802
Services

Protective Services 8,822 4,575 4,965 5,649 24,011 (243) 99,002 1,782 123,013

Social & Health Services 2,608 5,108 3,458 3,758 14,932 1,000 22,098 - 37,030

Transportation Services 127,801 200,212 98,953 127,779 554,745 9,991 935,853 53,908 1,490,598

Corporate, Operational &


Council Services & Financial 11,653 16,076 11,666 12,167 51,562 - 79,916 1,089 131,478
Management
2-3
Total Expenditures 213,725 268,521 159,336 192,232 833,814 10,973 1,373,619 59,273 2,207,433
Subject to rounding
Notes:
1. Amounts reported in the 2016 and 2017 Capital Budget include housekeeping budget adjustments.
2. The 2016 to 2025 Capital Budget includes Non-TCA expenditures that will not result in the creation of a tangible asset (having physical substance). Non-TCA
expenditures are reported annually through the Financial Statement reporting process.
3. Includes the recommended budget amendments (4, 9-19) supported by budget amendment cases and 2020-2025 budget adjustments that do not require a
budget amendment case since there is no impact to 2016-2019.
Page 42
2016-2019 CAPITAL BUDGET OVERVIEW WITH FORECAST FOR 2020-2025
2018 ANNUAL BUDGET UPDATE (AS RECOMMENDED)
($000's)
CAPITAL BUDGET BY SOURCE OF FINANCING
2018-2019 2020-2025 Total
2016 2017 Annual Update Revised 2020-2025
Budget Budget Revised
Source of Financing Approved Approved 2016-2019 Revised
1 1 2018 2019 Increase/ Increase/ Ten Year
Budget Budget Budget Forecast
Amended Amended (Decrease) (Decrease) Plan
Tax Supported

Capital Levy 34,841 37,229 39,921 42,371 154,362 - 298,915 - 453,277

Debenture 31,246 40,159 22,256 29,031 122,692 4,587 156,388 27,237 279,080

Reserve Fund 31,169 25,094 27,033 27,883 111,179 1,707 206,003 6,234 317,182

Other 834 10,027 250 - 11,111 - - - 11,111


Sub-total Tax Supported 98,090 112,509 89,460 99,285 399,344 6,294 661,306 33,471 1,060,650
Non-Tax Supported

Debenture 22,023 40,194 14,317 28,487 105,021 (11,407) 135,063 25,070 240,084

Reserve Fund 33,126 30,837 40,885 43,287 148,135 14,097 147,027 (5,268) 295,162

Federal Gas Tax 16,479 12,691 12,705 18,321 60,196 (1,146) 110,902 - 171,098

Provincial Grants 2,070 35,985 742 792 39,589 - 15,102 - 54,691

Senior Government 29,636 29,952 - - 59,588 - 297,756 - 357,344

Other 12,301 6,353 1,227 2,060 21,941 3,135 6,463 6,000 28,404
Sub-total Non-Tax Supported 115,635 156,012 69,876 92,947 434,470 4,679 712,313 25,802 1,146,783
Total Sources of Financing 2 213,725 268,521 159,336 192,232 833,814 10,973 1,373,619 59,273 2,207,433
Subject to rounding
Notes:
1. Amounts reported in the 2016 and 2017 Capital Budget include housekeeping budget adjustments.
2. Includes the recommended budget amendments (4, 9-19) supported by budget amendment cases and 2020-2025 budget adjustments that do not require a
budget amendment case since there is no impact to 2016-2019. Page 43
2026 - 2027 CAPITAL BUDGET FORECAST
2018 ANNUAL BUDGET UPDATE
($000's)

2018-2027
Classification / 2026 2027 Rolling
Source of Financing Forecast Forecast Capital
Plan
CAPITAL BUDGET BY CLASSIFICATION
Lifecycle Renewal 97,920 94,152 881,784
Growth 65,196 37,978 933,476
Service Improvement 24,125 29,125 258,424
Total Expenditures 187,241 161,255 2,073,684

CAPITAL BUDGET BY SOURCE OF FINANCING


Tax Supported
Capital Levy 57,267 59,395 497,869
Debenture 23,641 22,104 253,420
Reserve Fund 30,369 27,977 319,265
Other - - 250
Sub-total Tax Supported 111,277 109,476 1,070,804
Non-Tax Supported
Debenture 47,262 10,812 235,941
Reserve Fund 12,232 19,342 262,773
Federal Gas Tax 13,849 19,004 174,781
Provincial Grants 2,606 2,606 21,848
Senior Government - - 297,757
Other 15 15 9,780
Sub-total Non-Tax Supported 75,964 51,779 1,002,880
Total Sources of Financing 187,241 161,255 2,073,684
Subject to rounding

Page 44
2026 - 2027 CAPITAL BUDGET FORECAST
2018 ANNUAL BUDGET UPDATE
($000's)

The following section highlights major capital works contained within the 2026 - 2027 periods of the rolling 10 year
capital plan:

2026 2027
Major Capital Works In 2026 2027
Forecast Forecast

LIFECYCLE RENEWAL
Recreation Facilities - Lifecycle Renewal Program 3,600 3,600
Fire Vehicle Replacement Program 3,681 15
Bus Replacement Program 9,455 9,455
Annual Road Repair Program - Arterial Roads and Secondary Collector Streets 26,939 27,412
Traffic Signal and Street Light Maintenance 8,123 8,371

GROWTH
Huron Street Widening (Highbury to Clarke) 13,275 -
Colonel Talbot Rd. Reconstruction (300 meters South of Southdale to Kilbourne) 8,905 -
Sanatorium Rd. Widening (Riverside to Commissioners) 12,134 -
Southdale Rd. West Widening (Colonel Talbot to Farnham) 13,754 -
Adelaide Street Improvements (Fanshawe Park to Hamilton) - 16,894

SERVICE IMPROVEMENT
London Police Service Facility Expansion 20,000 20,000
Public Housing Regeneration 1,000 1,000

Page 45
RAPID TRANSIT BUDGET
($000's)
On July 26, 2017, Municipal Council approved the Shift Rapid Transit Master Plan and Business Case, increasing the total budget to $500 million.
Previously the total budget was $380 million. The increase is to be supported with additional funding from the Federal and Provincial governments.
The table below shows the adjustments to the Rapid Transit capital budget, including both the budget increase and timing changes resulting from the
Master Plan.
Adjustments
Approved Budget Revised Budget
Increase/(Decrease)
Expenditures and
Sources of Financing 2016-2019 2020 - 2016-2019 2016-2019 2020 -
2014 - 2014 -
Multi-Year 2026 Total Multi-Year 2020-2026 Total Multi-Year 2026 Total
2015 2015
Budget Forecast Budget Forecast Budget Forecast

Total Expenditures 4,700 267,786 110,696 383,182 (107,142) 223,960 116,818 4,700 160,644 334,656 500,000
Sources of Financing

Municipal Contribution:

Capital Levy 648 7,807 3,274 11,729 - - - 648 7,807 3,274 11,729
1
Development Charges 3,385 81,455 33,625 118,465 - - - 3,385 81,455 33,625 118,465

Federal/Provincial 667 178,524 73,797 252,988 (107,142) 223,960 116,818 667 71,382 297,757 369,806
Total Sources of Financing 4,700 267,786 110,696 383,182 (107,142) 223,960 116,818 4,700 160,644 334,656 500,000
Note 1: New provincial regulations on Development Charges recovery for transit projects may change the growth/non-growth splits on the municipal contribution. A
consultant's study on this issue will be completed in 2018.

Page 46
APPENDIXD
RESERVES&RESERVEFUNDSOVERVIEW

Page 47
2016-2025 RESERVES & RESERVE FUNDS OVERVIEW
2018 ANNUAL BUDGET UPDATE
($000's)
Reserves & Reserve Funds Plan Budget Forecast
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revised Projected Balance - Obligatory Reserve Funds
City Services:
City Services reserve funds are legislated by the Development Charges
(DC) Act, 1997, as amended; a separate reserve fund exists for each 80,995 35,211 30,184 19,803 18,440 19,578 19,375 21,743 23,434 19,054
service upon which a DC is levied; contributions fund future growth related
projects.
Parkland:
Parkland Reserve Fund is legislated by the Planning Act, R.SO. 1990, as
amended; monies standing in the reserve fund represent contributions 2,793 2,126 2,341 2,671 3,108 3,452 3,903 4,261 4,726 5,114
from developers for payments in lieu of providing parkland and the reserve
fund is restricted to supporting related park or other recreational purposes.
Total Obligatory 83,788 37,337 32,525 22,474 21,548 23,030 23,278 26,004 28,160 24,168

Revised Projected Balance - City-Owned Reserve & Reserve Fund Categories


Capital Asset Renewal & Replacement:
Established to provide funding for the repair and maintenance of existing 112,511 69,683 75,272 83,496 82,166 96,229 105,785 107,747 116,166 127,286
City assets to ensure city-owned assets do not deteriorate over time.
Capital Asset Growth:
Established to provide funding to new capital initiatives while allowing the
16,024 10,536 10,955 13,364 13,616 11,873 8,740 6,708 6,208 7,005
City to stabilize the cost of purchasing major capital assets by spreading
the cost over multiple years.
Specific Projects & New Initiatives:
Planned savings within the budget to fund projects or expenses either
identified at the time the reserve or reserve fund is set-up or after, which 146,853 115,655 120,188 120,391 129,866 141,423 153,387 166,767 177,728 190,931
allows the City to save for planned or unanticipated projects or expenses
that may arise and do not have another funding source.
Contingencies/Stabilization & Risk Management:
Designed to fund future obligations which are based on calculated
117,601 111,172 109,364 108,901 110,705 113,802 117,085 121,324 125,040 129,379
estimates and to mitigate unforeseen events or one-time unanticipated
expenses.
Total City-Owned 392,989 307,046 315,779 326,152 336,353 363,327 384,997 402,546 425,142 454,601
Subject to rounding
Amounts reported include the recommended 2018 Annual Budget Update amendments.

Page 48
APPENDIXE
DEBTOVERVIEW

Page 49
2016-2019 DEBT OVERVIEW
2018 ANNUAL BUDGET UPDATE
($000's)

Budget Forecast
Debt Servicing Expenditures
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1
Approved Budget 37,575 37,255 38,256 39,715 41,187 41,966 42,784 43,037 43,037 43,037
Total Amendments
Revised Budget 37,575 37,255 38,256 39,715 41,187 41,966 42,784 43,037 43,037 43,037
2
Revised Budget - Other Corporate 25,375 26,646 27,674 30,263 39,139 40,051 39,195 37,710 42,170 44,507
Revised Budget - Total Corporate 62,950 63,901 65,930 69,978 80,326 82,017 81,979 80,747 85,207 87,544

Potential Debt Levels Budget Forecast


(Issued + Authorized) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1
Revised Budget 270,673 274,712 265,757 263,146 265,864 257,300 237,821 230,147 221,855 211,916
2
Revised Budget - Other Corporate 304,992 326,547 325,611 330,548 333,395 332,280 316,633 314,729 318,527 335,242
Revised Budget - Total Corporate 575,665 601,259 591,368 593,694 599,259 589,580 554,454 544,876 540,382 547,158
Subject to rounding
Notes:
1. Amounts reported include housekeeping budget adjustments.
2. Other Corporate includes Wastewater, Water and Reserve Fund Supported Budgets.

Page 50
APPENDIXF
RECONCILIATIONOFTABLEDBUDGETTO
PUBLICSECTORACCOUNTINGBOARD
FINANCIALSTATEMENTBUDGET

Page 51
RECONCILIATION OF TABLED BUDGET TO
PUBLIC SECTOR ACCOUNTING BOARD
FINANCIAL STATEMENT BUDGET
Ontario municipalities must adhere to Public Sector Accounting Board (PSAB) accounting standards and reporting requirements, however, with the
introduction of PS1200 in 2009, the Province of Ontario enacted a regulation, Ontario Regulation 284/09, allowing for certain items to be excluded
from their budgets, as long as it was disclosed. Typical PSAB items, such as costs related to amortization expense, post-employment benefit
expense and solid waste landfill closure and post-closure expense can be excluded, however, the regulation requires that the municipality report to
Council on the impact of these excluded costs prior to budget approval.
The regulation requires that the report contain information regarding:
1. An estimate of the change in the accumulated surplus of the municipality to the end of the year resulting from the exclusion of any of those
expenses; and
2. An analysis of the estimated impact of the exclusion of any of those expenses on the future tangible capital asset funding requirements of
the municipality or local board.
Londons 2018 and 2019 draft Property Tax Supported operating budgets as tabled, exclude the following expenses:
1. Expenses for the amortization of tangible capital assets, estimated to be $76.0 million for 2018 and $79.3 million for 2019, are excluded.
The budget does include reserve fund contributions of $57.7 million for 2018 and $57.7 million for 2019 and pay as you go contributions of
$43.3 million for 2018 and $45.6 million for 2019 for capital asset additions.
2. The budget does not contain the current years post-employment benefit expense for early retirement and accrued sick leave, estimated to
total $6.1 million for 2018 and $6.1 million for 2019, for employees that are eligible for these benefits. The Corporation's consolidated liability
as at December 31, 2016 was $149.2 million. Reserve fund balances as of December 31, 2016 of $18.7 million are available to offset this
obligation.
3. The City has a landfill closure and post-closure liability of $34.4 million, which is not recorded as an expense in the budget. The Sanitary
Landfill Reserve Fund, with a balance of $11.9 million as of December 31, 2016, partially offsets this liability.
4. The City also makes contributions to an additional reserve to offset the liabilities created from the post-employment (point 2 above) and
landfill closure and post-closure expenses (point 3 above) depending upon generated surpluses, including personnel cost savings. The
balance in this reserve as of December 31, 2016 was $62.5 million.
If the above items were included in the 2018 and 2019 budgets, the projected annual PSAB surplus would decrease.
Table 1 and Table 2 on the following pages show 2018 and 2019 draft Property Tax Supported operating budgets and the 2017 approved revised
budget in PSAB format.

Page 52

RECONCILIATION OF TABLED BUDGET TO
PUBLIC SECTOR ACCOUNTING BOARD
FINANCIAL STATEMENT BUDGET ($000s)
2017 Tax
2018 2019
Table 1 Supported
Draft Budget Draft Budget
Revised Budget

REVENUES
Property Tax 556,980 572,887 589,551
Property Tax - Proposed Budget Increase - 2,275 4,700
Government Grants & Subsidies 209,557 217,568 220,443
User Fees 45,313 46,583 46,793
Municipal Revenues - Other 68,299 68,754 69,341
Municipal Revenues - Transfers from Capital - - -
Municipal Revenues - Transfers from Reserves and Reserve Funds 6,965 7,757 5,364
Total Revenues 887,114 915,824 936,192

EXPENSES
Personnel Costs 331,250 342,615 352,961
Administrative Expenses 6,245 6,331 6,590
Financial Expenses - Other 11,357 11,533 11,710
Financial Expenses - Interest & Discount on Long-term Debt 5,427 5,717 6,171
Financial Expenses - Debt Principal Repayments 30,748 31,455 32,457
Financial Expenses - Transfers to Reserves and Reserve Funds 52,575 57,684 57,717
Financial Expenses - Transfers to Capital 41,760 43,263 45,626
Purchased Services 178,679 182,358 184,066
Materials & Supplies 34,707 36,025 36,835
Vehicle & Equipment 23,777 24,316 23,917
Transfers 189,986 194,857 199,609
Other Expenses 905 608 (376)
Recovered Expenses (20,302) (20,938) (21,091)
Total Expenses 887,114 915,824 936,192

NET SURPLUS (DEFICIT) - - -


Page 53

RECONCILIATION OF TABLED BUDGET TO
PUBLIC SECTOR ACCOUNTING BOARD
FINANCIAL STATEMENT BUDGET ($000s)
2017 Tax
2018 2019
Table 2 Supported
Draft Budget Draft Budget
Revised Budget

PROJECTED NET PSAB SURPLUS 146,575 73,823 79,730

PSAB REPORTING REQUIREMENTS:


Addback to revenues:
Transfers from Capital - - -
Transfers from Reserves and Reserve Funds 6,965 7,757 5,364
Deduct from expenses:
Transfers to Reserves and Reserve Funds (52,575) (57,684) (57,717)
Transfers to Capital (41,760) (43,263) (45,626)
Debt principal repayments (30,748) (31,455) (32,457)
PSAB adjustments:
Capital program funding earned in year (1) (101,720) (14,355) (20,026)
Capital projects not resulting in tangible capital assets (2) 24,604 15,057 18,166
Amortization (3) 72,843 76,014 79,324
Developer contributions of assumed tangible capital assets (4) (14,701) (14,496) (14,496)
Loss on disposal of tangible capital assets (5) 809 762 761
Obligatory reserve fund deferred revenue earned in year - DC, Gas Tax(6) (12,999) (14,474) (15,365)
Government Business Enterprises adjustments (7) (5,467) (5,362) (5,452)
Other - - -
Landfill liability (8) 2,255 1,540 1,657
Employee future benefit liability (9) 5,919 6,136 6,137
NET SURPLUS (DEFICIT) PER DRAFT BUDGET - - -
Footnotes and Assumptions

1) Represents capital revenue such as provincial and federal grants and other contributions. Does not include debenture financing, transfers from operating or reserve funds.
2) For PSAB purposes, expenses not considered to be part of the cost of a tangible capital asset are expensed as operating expenses although funded through capital.
Estimated based on 9.45% of capital expenditure budget, based on 2016 actuals.

3) Represents the annual writedown of the tangible capital assets over the useful life of the asset. Estimated 4.35% annual increase based on 2009 - 2016 actuals.

4) Contributed tangible capital assets are tangible capital assets that become the ownership of the City when a subdivision is assumed by the City. These assets are
recognized at fair mark et value during the year of assumption. These assets are predominantly comprised of roads infrastructure. Estimate based on 6 year average of actuals.
5) When an asset is replaced prior to the end of its useful life, an adjustment must be made to expense the remaining book value. Amount fluctuates from year to year.
Estimate based on 5 year average of actuals from 2012 - 2016.
6) Transactions recorded directly to reserve funds must be accounted for through the operating or capital fund. This includes recognition of development charge levies and
federal gas tax earned in the year.
7) London Hydro Inc., Fair-City Joint Venture and City-YMCA Joint Venture are considered Government Business Enterprises (GBE). At year end, the City must record the City's

share of earnings based on our percentage ownership in each GBE. Estimate based on 6 year average.
8) Represents the annual increase in the estimated future cost of post-closure related to landfills. Estimate based on 8 year average.
9) Represents the annual change in the estimated future costs of employee benefits. Estimate based on 8 year average. Page 54


















APPENDIXG






TIMETABLE











Page 55
2018 ANNUAL BUDGET UPDATE TIMETABLE
WHAT WHERE&WHEN
Tabling of the 2018 Budget Update to the October 30, 2017
2016-2019 Multi-Year Budget At 4:00 pm (immediately preceding the Council meeting)
Strategic Priorities and Policy Committee
Council Chambers

Budget Sessions Provides an opportunity for Londoners to come out Byron Library, Byron Meeting Room
and speak face-to-face with administration. 1295 Commissioners Road West
November 7, 2017
6:00 pm 8:00 pm

East London Library, East London Rotary Room


2016 Dundas Street
November 9, 2017
6:00 pm 8:00 pm

Public Participation Meeting November 22, 2017


Members of the public are invited to provide input into the 2018 Budget 4:00 pm
Update to the 2016-2019 Multi-Year Budget Strategic Priorities and Policy Committee
Council Chambers

2018 Budget Update Review November 27, 2017


1:00 pm
(and November 30, 2017 at 4:00 pm if needed)
Strategic Priorities and Policy Committee
Council Chambers

Approval of the 2018 Budget Update to the December 12, 2017


2016-2019 Multi-Year Budget 4:00 pm
Council
Council Chambers

Page 56
london.ca/budget