2016 city of peterborough draft budget highlights

7/21/2019 2016 City of Peterborough draft budget highlights

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Draft

2016 Budget

Highlights(Budget Book 1 of 4)


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( g )

To: Members of the Budget Committee

From: Sandra Clancy, Director of Corporate Services

Allan Seabrooke, Chief Administrative Officer

Meeting Date: November 2, 2015

Subject: Report CPFS15-0502016 Draft Budget

Purpose

A report to provide the 2016 Draft Operating and Capital Budget for consideration.

Recommendation

Th t C il th d ti tli d i R t CPFS15 050 d t d


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Report CPFS15-050 2016 Draft Budget Page 2

The 2016 Capital Budget includes $64.6 million of capital work. The Budgetincorporates the Debt Management Policy approved as part of Report CPFS12-011

dated April 4, 2012 and uses all the available capital levy, tax supported debenturefinancing and Federal Gas Tax to finance the work. The 0.5% increase in the all-inclusive tax rate, which amounts to approximately $0.75 million, has been used in itsentirety to increase tax supported debt principal and interest payments.

For the median single family dwelling (not on water) the increase means a $90.20annual increase.

Further details are provided throughout the four budget books.

Background

A. The 2016 Budget in Brief

The 2016 Draft Budget presented today meets Councils 2016 guideline of 2%-general-plus-0.5%-capital for a 2.5% all-inclusive guideline as directed by Council throughreport CPFS15-036 dated July 27, 2015 for a residential property assessed at$228,000. The term all-inclusive tax means the municipal, education and sewersurcharge amounts payable.

Residential assessment is estimated to increase by 2.9% comprised of a 1.0% growthcomponent and a 1.9% re-assessment impact, stemming from the fact that 2012 marketvalues are being phased-in over the four-year period 2013 2016.

For the most part, the Operating Budget maintains the current Council approved level ofservice with some minor exceptions Key impacts are noted in the table on page 12


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B. Process, Challenges, Documents and Meeting Schedule

2016 Budget ProcessCorporate Services staff prepared and distributed budget packages to departments inearly April 2015 which, in turn submitted their initial 2016 proposed budgets by May2015.

The material was compiled and a two-tiered review approach was completed. The firstreview was done with individual Department Directors and Corporate Services staff.The second was a review by the CAO, the Director of Corporate Services, Manager ofFinancial Services, Budget Analyst and individual Department Directors.

In mid September, the CAO and all the Directors completed a final review of thesubmissions and Corporate Services staff prepared the 2016 Draft Budget that is beingreleased this evening.

Peterborough Police Services Budget

The 2016 Guideline Report included recommendation (e) which read as follows:

That the draft 2016 Operating Budget reflect a 3.8% increase in the netPeterborough Police Services Budget to be accommodated within the 2.00%general increase, and any increase in the net Police Services budget beyond the3.8% be addressed by Council as part of the detailed 2016 Budget deliberations tooccur in November of 2015.

The 2016 Draft Budget reflects a 2.7% ($621,334) increase for Police Services and iswithin the guideline established by Council.


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Reductions Made to Achieve 2.0% Operating Guideline

Through the 2016 Budget Guidelines Report CPFS15-036, staff asked for a 2.35%Operating increase plus a 0.5% increase for Capital for a combined All-inclusiveincrease of 2.85%.

In the ensuing debate, Council seemed for the most part supportive of the 0.5% Capitalincrease and the resulting capital works that could move forward, but felt strongly thatthe 2.35% Operating increase was too much ultimately settling on an Operatingincrease of 2.0% for a combined All-inclusive increase of 2.5%.

The 0.35% differential amounts to $525,000. The following chart details how thesavings were achieved:

Ref Department Action Reduction(Increase)1 Office of the

MayorElimination of 1 staff position $86,500

2 USD Reduction in fuel budgets Transitand Public Works (assuming pricesdo not increase to 2014 levels)

$174,500

3 USD Savings with new solution foradditional Winter Control Services $200,000

4 USD Decrease contribution to ParkingReserve $100,000

5 USD Eliminate contribution to Traffic SignalReserve $78,0006 Fairhaven Additional budget ($292,667)7 Police Services Budget ask Lower than expected $260 604


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Charlotte Street Renewal and Louis Street Urban Park Capital Budget Reference7-1.07

The renewal of Charlotte Street and the creation of a downtown urban park are keystrategies of the approved Central Area Master Plan. The Louis Street site wasselected as the preferred site for the creation of an urban park to complement theplanned reconstruction of Charlotte Street and to stimulate renewal in the DowntownCore and the Charlotte Street West Business District.

New Arena Facility Capital Budget Reference 6-6.04

Capital resources for this project are essential in order to plan, develop and construct areplacement facility for Northcrest Arena. Given the updated capital cost included inReport CSD15-021 New Arena Development Strategy dated October 13, 2015, thisproject has been shifted out by one year.

The project phases are defined as follows:

Year Value Description2015 $500,000 Phase I Feasibility Study, Schematic Design, and Costing

Study2017 $1,500,000 Phase II Detailed Design and Tendering2018 $11,000,000 Phase III - Construction and Contract Administration2019 $20,500,000 Phase III (cont'd) - Construction, Contract Administration,

and Commissioning

Public Works Relocation Project Capital Budget Reference 5-8.06

It is anticipated that when fully developed this site will support the Public Worksti f th t 20 25 Ch t th i ti b ildi l dditi l


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The Budget Highlights Book includes a list of items on page 205 that have beenrequested but not recommended that Council may wish to review.

It is recommended that the Budget Highlights (Book #1) be used by the BudgetCommittee during its review of the 2016 Draft Budget.

Book 2 2016 Operating Budget

The 2016 Operating Budget document (Book #2) contains departmental financial

summaries plus financial and narrative information by division and/or activity. The textpages set out the purpose, highlights and comparative staff complement for eachactivity.

The 2015 preliminary actual numbers shown in the document are unaudited estimatesprovided by departments and may change pending final year-end adjusting entries.

User Fee Schedules are included for all departments and will be included in a User Fee

By-law that will be approved following budget deliberations.

Book 3 2016 Capital Budget and 2017 2018 and Subsequent YearsCapital Forecast

The Capital Forecast document provides summaries of Capital projects by departmentand division and provides one detailed narrative page and financial page to support each

project. Due to the legislative requirements of the Public Sector Accounting Board(PSAB), capital projects are split into two types, Tangible Capital Assets and Other.Other projects are typically studies or smaller maintenance type expenditures on Cityfacilities that are below the thresholds identified for the tangible capital assets.


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2016 Budget Committee and Council Schedule

The proposed timetable to review the 2016 Draft Budget is set out below:

November 2, 2015 2016 Draft Budget presented to Budget Committee by Staff.

November 18, 2015 Public Meeting of Budget Committee to receive input on the2016 Draft Budget.

November 23, 2015 Budget Committee reviews 2016 Draft Budget November 23 November 26 as required.

December 7, 2015 Council considers all of the recommendations ultimatelyendorsed by the Budget Committee and adopts a 2016Budget as amended.

C. RecommendationsThe recommendations needed to implement the 2016 Budget are presented in

Appendix A.

Summary

The 2016 Draft Budget documents are provided as a basis for the budget deliberations.It is recommended that the 2016 Highlights Book be the guiding document for BudgetCommittee review. Budget Books 2, 3, and 4 (Operating, Capital, and SupplementaryI f ti B k ti l ) f f t i l f i g l t


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Contact Person:Richard FreymondManager of Financial ServicesPhone: 705-742-7777 Ext. 1862Toll Free: 1-855-738-3755Fax: 705-876-4607E-mail: [email protected]

Attachment: Appendix A Recommendations Appendix B - 2016 Budget Response to Public Input at Guideline Stage
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Appendix A

2016 Operating and Capital Draft Budget RecommendationsThat the following recommendations be moved for the purpose of discussion:

a) That the 2016 Draft Budget, and all estimated revenues and expenditures, fees,contributions to reserve and reserve funds, and proposed staffing levelsreferenced in the documents be adopted.

b) That the user fees and charges as set out in Book 2 be adopted as part of 2016Budget process.

c) That any unused CAO Budget at the end of 2016 be transferred to theOrganizational Development Reserve, subject to the overall year-end position.(Page 24)

d) That any unused Peterborough Technology Services Budget, at the end of 2016,be transferred to the Electronic Data Processing (EDP) Reserve, subject to theoverall year-end position and that if actual 2016 costs exceed the 2016 Budget,funds may be drawn from the EDP reserve. (Page 31)

e) That any Engineering Overhead surplus be transferred to the Engineering Designand Inspection Reserve, subject to the overall year-end position and that if actual2016 Engineering costs exceed the Budget, funds may be drawn from theEngineering Design and Inspection Reserve. (Page 57)

f) That any unused portion of the 2016 Winter Control Budget that may exist atyear-end be transferred to the Winter Control Reserve, subject to the overallyear-end position and that if actual 2016 Winter Control costs exceed the 2016


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k) That any surplus funds at the end of 2016 for Arenas be transferred to the ArenaEquipment Reserve for future equipment purchases. (Page 121)

l) That any unused Homelessness net budget at the end of 2016 be transferred tothe General Assistance Reserve, to be used for future investment inhomelessness prevention programs, subject to the overall year-end position andthat if actual 2016 Homelessness costs exceed the 2016 Budget, funds may bedrawn from the reserve. (Page 134)

m) That any unused Community Social Plan net budget at the end of 2016 be

transferred to the Social Services Community Social Plan 40/60 Reserve forfuture program development, subject to the overall year-end position and that ifactual 2016 Community Social Plan costs exceed the 2016 Budget, funds maybe drawn from the reserve. (Page 134)

n) That any remaining unused Social Services net budget at the end of 2016 betransferred to the General Assistance Reserve, subject to the overall year-endposition and that, if actual 2016 Social Services costs exceed the 2016 Budget,

funds may be drawn from the reserve. (Page 134)o) That any surplus in the 2016 Housing Operating Budget at the end of 2016 be

transferred to the Housing Reserve, subject to the overall year-end position andthat, if actual 2016 Housing costs exceed the 2016 Budget, funds may be drawnfrom the Housing Reserve. (Page 150)

p) That any surplus in the 2016 Housing Choice Rent Supplement Program at the

end of 2016 be transferred to the Housing Choice Rent Supplement Reserve,subject to the overall year-end position and that, if actual 2016 Rent Supplementcosts exceed the 2016 Budget, funds may be drawn from the Rent SupplementReserve. (Page 150)


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s) That any unused portion of the 2016 tax write off account balance that may existat year-end be transferred to the Allowance for Doubtful Accounts Reserve,

subject to overall year-end position and that, if actual 2016 tax write-off costsexceed the 2016 Budget, funds may be drawn from the Allowance for Doubtful Accounts Reserve. (Page 165)

t) That any unused Employee Benefits Budget at the end of 2016 be transferred tothe Employee Benefits Reserve, subject to the overall year-end position, andthat, if actual 2016 employee benefits exceed the 2016 Budget, funds may bedrawn from the Employee Benefits Reserve. (Page 165)

u) That any unused Insurance Budget at the end of 2016 be transferred to theInsurance Reserve, subject to the overall year-end position and that, if actual2016 insurance costs exceed the 2016 Budget, funds may be drawn from theInsurance Reserve. (Page 165)

v) That any unused 2016 Contingency Budget at the end of 2016 be transferred tothe Capital Levy Reserve to be used for Capital works subject to the overall 2016

year-end position. (Page 165)w) That any unused Police Services Legal fees Budget at the end of 2016 be

transferred to the Legal Fees Policing Reserve, subject to the overall year-endposition and approval through the Treasurer, and that if the actual 2016 Policelegal fees costs exceed the 2016 Budget, funds may be drawn from the PolicingLegal Fees Reserve. (Page 169)

x) That any unused Police Services Budget at the end of 2016 be transferred to thePolice Special Projects Reserve, subject to the overall year-end position andapproval by City Council and that, if the actual 2016 Police Services costsexceed the 2016 Budget, funds may be drawn from the Police Special Projects


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cc) That the 2016 budget request representing the levy required by the DowntownBusiness Improvement Area of the Corporation of the City of Peterborough

during the year 2016 totalling $298,685, be approved. (Page 180)dd) That the 2016 budget request representing all sums required by the Village

Business Improvement Area of the Corporation of the City of Peterboroughduring the year 2016 totalling $16,380, be approved. (Page 181)

ee) That any net surplus funds, after the disposition of the recommendations in thisreport, from 2016 operations in excess of $100,000 be transferred to the Capital

Levy Reserve to be used for Capital works. (Page 183)ff) That a by-law be passed to establish the 2016 tax ratios for each property class

as set out in the 2016 Operating Budget. (Page 193)

gg) That the 2016 tax rate for farmland awaiting development subclasses be 75% ofthe residential rate. (Page 194)

hh) That a system of graduated tax rates within the Commercial and Industrialclasses not be implemented for 2016. (Page 194)

ii) That the capping policy for 2016 for the Multi-residential, Commercial andIndustrial classes be as follows:

i. Capping be based on a maximum increase threshold at the greater of10% of the previous years annualized capped taxes and 5% of the

previous years annualized CVA tax for the eligible property. (Page 194)ii. No capping credit be applied for properties where the required billing

adjustment is within a $250 credit of the properties CVA tax; affected


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Appendix B - 2016 Budget Response to Publ ic Input at Guideline Stage

Ref Concern Identifi edDivision or AreaResponsib le Reference or Comments

C1 C2 C3 C41 Create a Municipal

Poverty Reduction PlanSocial Services The City has a number of plans that intersect with issues of poverty including

the Housing and Homelessness Plan, the Ontario Works Service Deliveryplan and Sustainable Peterborough. Age Friendly and Healthy Kids plansare currently in development. There is consideration being given to thedevelopment of an overarching plan that addresses community well beingthat would link with these plans and other municipal and communityinitiatives. A report to seek Council endorsement is anticipated to comeforward in spring 2016.

2 Invest more in theHousing Stability Fund(HSF)

Social Services The 2016 Draft Operating Budget includes $153,077 which sustains the2015 HSF funding levels to help meet the demand for emergency housing.This amount is being funded from a $100,000 draw from City reserves, anincrease of $27,054 from the City tax base and an additional $26,023 fromthe County (above the maximum contribution of $204,000 from the Countyas noted in the CMSM cost share agreement).

3 Invest in Child recreation Social Services Recreation subsidies are provided through Discretionary benefits for Social Assistance clients, municipal programs for low income families as well ascommunity based programs like Jump Start.

4 Review Public WaterProject status (banningthe sale of water in publicfacilities)

Recreation Report CSRS15-006, dated September 21, 2015 provided an update.

5 Timing of Official PlanUpdate and that itaddress concerns aboutthe City needing moredirection, moregreenspace, trails andmore community not

just subdivisions

Planning The Planning Division Work Program continues to reflect the completion ofthe Official Plan review in 2016, including the public consultation process.The Plan will reflect the principle of a complete community which wasarticulated throughout the initial consultation phase and is consistent withprovincial policy direction.


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C1 C2 C3 C46 Puzzled about deferral of

FRMP fundingEngineering This relates to $2.1 million of the traditional $2.5 million of capital levy FRMP

funding not being funded in 2016. This does not delay the projects to bedone given staff resources and the Bethune Street project, which attractedProvincial and Federal funding and will move that FRMP project years aheadin being completed.

7 Propose property taxesbe geared to income

Financial Services No, under the Municipal Act, 2001, property taxes must be based on theassessed value of the property, however, the City has several programs toassist seniors and low income individuals (Financial Services Other).

8 Concerns over ability topay

Financial Services Council reduced the recommended 2016 for operating of 2.35% to 2%; Cityhas several programs to assist seniors and low income individuals (FinancialServices Other).

9 Enhance information onCity website to ensurecurrent

Customer Service 2016 Capital Budget includes a project to Refresh the City website; staffingincludes a re-focus of existing resources to dedicate more time tocommunications including the web-site and social media.

10 Concern over debt levels (How much more debtcan we sustain?)

Financial Services The province of Ontario calculates the Citys annual Debt Repayment Limit. A municipality cannot commit more than 25% of its total own-purposerevenues to service debt. The City has its own, more stringent, policy

(approved through Report CPFS12-011, dated April 4, 2012), which limits itsdebt repayment to 15% of the Citys total own-purpose revenue. If the 2016Draft Budget is approved, the City will be at 12.27%.

The current Capital Financing Plan includes issuing further debt up to theselimits to maintain the Citys assets and capital program given the current lowinterest rates.


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C1 C2 C3 C411 Transit - Peak time routes

established andsuccessful; should beexpanded in 2016especially for GeorgeStreet N, Charlotte StreetW, Jackson Park,

Ashburnham, HighlandRoad

Transit Council and staff try to find balance between supporting worthy service levelincreases in various program areas and the residential tax increase.Implementing 20 minute peak period service on these five routes wouldrequire $800,000 in new annual operating funding plus $3.5 million inadditional capital funding for seven new buses to provide the service. Seealso No. 18.

12 Provide more support to

citizens with lowerincome; discretionarybenefits

Social Services Report CSSS12-010 Discretionary Benefit Funding Report identified a

number of benefits to be retained at the level of expenditure Council directed($15) when there was a reduction in provincial funding for discretionarybenefits. For 2016, the amount of support to citizens is at the same level as2015, however, $40,000 more of that amount is being funded from the taxbase than in 2015 (as opposed to reserves) as per an approved phase-inplan.

13 Downtown infrastructure -sidewalks

Engineering/ PublicWorks

Funds are provided in the Operating Budget to repair/replace sections ofsidewalk as necessary. Priorities are established and in some instances,repairs/replacement might extend into future years.


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C1 C2 C3 C414 City could go further in

listening to citizens;Suggest establishingdistricts within wards toenhance public input

Engineering/Planning

The City has processes to consult with neighbours on specific items andensure compliance with all legislation. Sections 17 (Official Plans), 34(Zoning By-laws), and 51 (Subdivisions) of the Planning Act describe theregulations for how a municipality processes applications made under the

Act. All require the necessary information to be made available to the publicand at least one public meeting to be held. For most applications that areprocessed, the City requires the applicant to hold a neighbourhoodinformation meeting/open house to present their proposal to interestedneighbours. In addition, although the Planning Act allows a municipality togive notice of a public meeting by either mailing it to all owners within 120metres of the subject or publishing a notice in the newspaper, the City doesboth.

A new protocol has been established whereby a Public Information Centre isheld for all USD construction projects.

As well, during 2015, Councillors are also having Town meetings whichprovide another opportunity for consultation.

15 Residential taxpayersincrease is higher than itneeds to be due toprograms such as TaxRatio Reduction Programand funding provided tonon-profit organizations;more review should occurbefore being so generous

Financial Services Council and staff try to find balance between supporting other worthy causesand the residential tax increase; Tax Ratio program cut in half for 2016;Community funding organization only receive 1% increase


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C1 C2 C3 C416 Climate Change

concerns; Impact shouldbe factored into decisionmaking

Sustainability Through By-law 12-049, the City committed to the ongoing pursuit ofsustainability by adopting the Sustainability Plan, by embeddingsustainability into decision making of City operations, and by demonstratingits leadership by championing corporate and community sustainability.

The City committed to addressing climate change through Report CSD13-004, dated September 3, 2013, which initiated the Greater Peterborough

Area Climate Change Action Plan.

17 Denture Program fundingneeds to be increased

Social Services Report CSSS12-010 Discretionary Benefit Funding Report identified anumber of benefits to be retained at the level of expenditure Council directed($15) when there was a reduction in provincial funding for discretionarybenefits. Limiting the denture program was necessary to meet the financial

level. A wait list has been established and when there is any underspendingin other benefits, additional dentures are offered (but staff recognizes manypeople are not being assisted that require dentures.)

18 Universal assistancepasses for low income(Social Services, Transit,Recreation, other

services)

Transit (first phase) The City is working on the development of an Affordable Transit PassProgram to provide reduced transit fares for low income residents. ReportUSTR15-005 provided the key principles for the program and a report will beforthcoming to Council in early 2016 with recommendations and cost

implications. Opportunities to introduce a universal assistance pass toprovide access for low income residents to many different city programs andservices may be considered in the future.

19 Transit service is neededon Statutory Holidays

Transit The draft 2016 budget includes a below the line proposal for transit serviceon eight additional Statutory Holidays at a net cost of approximately$120,000.

The 2016 budget does include the provision of an extended New Years Eve

service.


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C1 C2 C3 C420 Ensure seniors have

access to annual transitpasses

Transit Seniors are currently able to purchase an annual transit pass for $220 ($18per month) which is 70% cheaper than a typical adult monthly pass. ATransit Affordability Program is being developed to review existing farediscount programs and target future discounts to those in financial need.(See Note 18)

21 Funding support forhomelessshelters/programs(Concern that Lighthousewill be closed onSundays)

Social Services Report CSSS15-004 extended the contracts for Lighthouse and Warmingroom through additional municipal funding.

Hours were reduced at time of low volume to help balance the cost of theservice with impacts on the residential tax rate.

22 City of Peterboroughneeds Strategic Plan

CAO The possibility of a Strategic Plan will be considered by staff in 2016.

23 Need tools such as socialmedia, to engage youthand broader spectrum ofpublic

Customer Service The City agrees that it needs to continue to do more with social media andthe City web-site, more staff resources are being applied to this area in 2016and funds for a web-site refresh is requested in the 2016 Capital Budget.

24 Support for "green"planning, such as bikeand walking trails.

Engineering/Planning

The draft 2016 budget includes about $2.5 M for various trail and cyclinginfrastructure capital projects. In addition, new Multi-use trails and protectedcrossings are being constructed as part of ongoing road reconstructionprojects on Brealey Drive, Parkhill Road, and Ashburnham Drive.

All road reconstruction projects and new road projects include considerationof the provision of new/improved bicycle and walking facilities.

25 Investigate ability to usedeferred FRMP capitalfunding for operations

Engineering Deferring the FRMP capital funding is recommended for one year; if it weremoved to the Operating budget, it would create a base funding problem inthe operating budget for future years


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C1 C2 C3 C426 More reporting to public

on status of issues andCapital projects

All Departments A weekly construction update for USD projects is provided to Council. Thisupdate will be placed on the Citys webpage.

27 Promote City as animmigration destination

Community Services While immigration is not a municipal responsibility, the City supports theNew Canadian Centre and the Immigration Partnership Council.Responsible for the Immigration Portfolio, the City's Manager of the ArtsCulture & Heritage Division has coordinated the development andmaintenance of the Immigration Portal athttp://www.welcomepeterborough.ca/welcome to present the region as aviable location for newcomer settlement.

28 Include the Tax RatioReduction Program in the2016 budget at its fullamount instead of one-half

Financial Services While this would be the preferred approach, in trying to balance the needwith the impact on the residential tax payer, one-half of the program is whathas been recommended

29 Further analysis of thebenefits/costs of the TaxRatio Reduction Program

Financial Services The original lengthy analysis that supported the Tax Ratio ReductionProgram can be found in Report FAFS07-004 dated April 26, 2007

30 Requesting a tax freezefor 2016

Financial Services Each budget is drafted with a view to keep the impact to the taxpayer at areasonable level, maintain levels of service and enhance only as legislatedor very selectively. Costs to provide City services continue to increase. Thestaff request in July 2016, through Report CPFS15-036 dated July 21, 2015recommended a 2.35% increase for operating and traditional support tocapital. Council directed staff to reduce this to 2%.
http://www.welcomepeterborough.ca/welcomehttp://www.welcomepeterborough.ca/welcomehttp://www.welcomepeterborough.ca/welcome


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C1 C2 C3 C431 Invite businesses and

corporate entities to helpshape the budget througha separate meetingprocess

Financial Services The additional public input being sought throughout the budget process isnot meant only for individual citizens. Businesses and corporate entitiesmay also attend public meetings and provide input.

32 Experience othercommunities success indealing with economic,transportation and urbanplanning challenges

Planning Staff do resource other communities through experience and research toassist them in bringing ideas to Peterborough

33 Measures taken toreduce electricity and fuelcosts

Property Through Report CPFS11-047 dated December 5, 2011, the City is part ofthe Electricity Procurement Program with LAS. Savings from this programare estimated to be approximately $200,000 annually. Report CPFS14-001dated January 15, 2014 awarded the current fuel contract based on aRequest for Tenders for the City and members of the Kawartha CooperativePurchasing Group to get the best price based on volume of gas purchased.

34 Present a table or reporton projects or operationalimprovements not funded

Financial Services The 2016 Draft Highlights Book includes a section on Operating budgetrequests not recommended and there is a separate report, CPFS15-052 oncapital budget projects not included in the 2016 budget.

35 Staff prepare a plainlanguage summary of thebudget

Financial Services Report CPFS15-050 that is included at the front of the 2016 Draft HighlightsBook and the Budget Overview summarize the budget at a high level andprovide key information

36 City should not increasedebt beyond current limits

Financial Services All municipalities are dealing with an Infrastructure Deficit and must createan Asset Management Plan and work towards maintaining their assets. Thisrequires funding and given the magnitude of the deficit and the low interestrates, doing this by incurred debt makes sense at this time rather than lettingthe infrastructure deficit get worse.


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Table of Contents

2016 BUDGETTable of Contents

Highlights Book (Book 1 of 4)

Part 1 - 2016 Budget Overview

2016 Operating Budget (Revenues and Gross Expenditures) ................................... 2

2016 Operating Budget: Revenues by Type ................................................................... 32016 Operating Budget: Gross Expenditures ................................................................. 42016 Operating Budget: Net Expenditures ..................................................................... 5Net Tax Levy Requirement .............................................................................................. 6Median residential assessment ....................................................................................... 7Residential education rate ............................................................................................... 7Sewer surcharge rate to stay at 95% .............................................................................. 7Budget guideline 2% + 0.5 = 2.5% ............................................................................... 8How 2.5% All-inclusive relates to Net Tax Levy Requirement ......................................... 8What does 1% mean? ..................................................................................................... 9Comparative All-Inclusive Increase For Median Residential Property ........................... 10Tax levy requirement change factors ............................................................................. 122016 Capital Budget ...................................................................................................... 152016 Capital Expenditures............................................................................................. 172016 Capital Financing by Source ................................................................................. 17 Largest 2016 Capital Projects ........................................................................................ 18


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Table of Contents

Corporate Services: Departmental Summary: Operating Budget ................ ............... 30 Corporate Services: Departmental Summary: Capital Budget: Tangible

Capital Asset .......................................................................................... 33Corporate Services: Departmental Summary: Capital Budget: Other ................. 34

Legal Services: Operating Budget ............................................................................ 45

Utility Services: Departmental Summary: Operating Budget ................................. 47Utility Services: Departmental Summary: Capital Budget:

Tangible Capital Asset .......................................................................... 48Utility Services: Departmental Summary: Capital Budget: Other ......................... 49

Utility Services: Budget (By Division)Utility Services Administration: Operating Budget ......................................................... 50Utility Services Administration: Capital Budget .............................................................. 51Flood Reduction Master Plan: Capital Budget ............................................................... 54

Engineering, Construction and Infrastructure Planning: Operating Budget.................... 57Engineering, Construction and Infrastructure Planning: Capital Budget

Arterial Streets ........................................................................................................... 58Collector and Local Streets ........................................................................................ 62Bridges.. .................................................................................................................... 64New Sidewalks .......................................................................................................... 67Sanitary Sewers ........................................................................................................ 68Storm Sewers ............................................................................................................ 70

Public Works Division: Operating Budget ...................................................................... 72Public Works Division: Capital Budget .......................................................................... 75

T t ti Di i i O ti g B dg t 78


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Table of Contents

Community Services: Budget (By Division)Community Services Administration Operating Budget ............................................... 103

Community Services Administration Division: Capital Budget .................................... 106Recreation Division: Operating Budget ........................................................................ 108Recreation Division: Capital Budget ............................................................................ 111

Arts, Culture and Heritage Division: Operating Budget ................................................ 113 Arts, Culture and Heritage: Capital Budget .................................................................. 116Library Board Capital Budget ....................................................................................... 117

Art Gallery Capital Budget ........................................................................................... 119

Arenas Division: Operating Budget ............................................................................. 120 Arenas Division: Capital Budget ................................................................................. 122

Social Services Division: Social Assistance ................................................................. 124Social Services Division: Childrens Services and Community Social Plan ................. 125

Municipal Cost formulas per the Consolidated MunicipalServices Management Agreement .................................... 127

Ontario Works and Employment Assistance Administration .................................... 128City and County Ontario Works Caseload and Cost Per Case ................................ 131Discretionary Benefits .............................................................................................. 132Community Homelessness Prevention Initiative ...................................................... 132Childrens Services ................................................................................................. 132Community Social Plan ........................................................................................... 133Social Services Reserve .......................................................................................... 133

Social Services Capital ................................................................................................ 135

Planning and Development Services: Departmental Summary:O i B d 137


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Table of Contents

Building Inspection and Protective Services Division: Operating Budget .................... 158

Financial Services Other Financial Summary ...................................................... 159Capital Financing Costs ............................................................................................... 160Property Taxation Costs .............................................................................................. 162Other Expenditures ...................................................................................................... 164

Transfers To Organizations For Provision Of Services Summary ........................ 166Police Services: Operating Budget .............................................................................. 167Police Services: Capital Budget ................................................................................... 170

Fairhaven ..................................................................................................................... 172Peterborough County/City Paramedics ....................................................................... 173Otonabee Region Conservation Authority (ORCA) ...................................................... 175Peterborough County-City Health Unit Operating Budget............................................ 176Peterborough Economic Development ........................................................................ 177Peterborough Humane Society .................................................................................... 177Primary Health Care Services ..................................................................................... 178Business Improvement Areas ...................................................................................... 179

Corporate Revenues Summary ................................................................................ 182Investment revenue ..................................................................................................... 183Payments in Lieu ......................................................................................................... 183Utilities Group of Companies Revenues ...................................................................... 1832015 Surplus Carried Forward as 2016 Revenue ........................................................ 183

Sewer Surcharge ......................................................................................................... 184

User Fees Summary Schedule .................................................................................... 186

Part 3 - 2016 Property Taxation


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Table of Contents

2016 Full Time Equivalent (FTE) Staff allocated by Department ................................. 202

Conversion of 2016 Budget to Full AccrualPSAB Compliant Budget .................................................. 203

Requests not Included in the 2016 Budget ................ .................. ............ 205

2016 Capital Financing Supplementary InformationCapital Levy and Tax Supported Debt Calculation ...................................................... 208

Federal Gas Tax Program ........................................................................................... 210Development Charges Reserve Funds ........................................................................ 212Long Term Debt ........................................................................................................... 216Reserves and Reserve Funds ..................................................................................... 225

Please Refer to Books 2 - 4 for detailed information as follows:

Book 2: Operating Budget Details and User Fees and Charges

Book 3: Capital Budget Details

Book 4: Work Programs for Departments and Divisions; Staffing SupplementaryInformation; Assessment, Tax Rate and Tax Policy SupplementaryInformation; and Glossary of Budget Terms and Acronyms


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2016

Budget Highlights

Part 1


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Part 12016 Draft Budget - Overview

2016 Operating Budget (Revenues and Gross Expenditures)

The 2016 Operating Budget provides a listing of the Operating Revenues andGross Operating Expenditures. The following two charts illustrate the Revenuesby Type and Gross Operating Expenditures by Department.


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Factors impacting Operating Revenues

Conditional Grants are projected to increase by approximately $3.8 million,mostly as a result of an increase in grant revenues for Social Assistance andChildrens Services in the amount of $2.9 million and an increase in Housing

b d h f $ ll


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Factors Impacting Gross Expenditures


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Gross expenditures versus net expenditures

Gross expenditures, less direct revenues of $117.7 million, such as conditionalgrants and user fees, result in net expenditure requirements for 2016 of $131.4million as shown in the following chart.

Factors impacting Net Expenditures


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Net tax levy requirement equals $118.8 million up by 3.4%

Corporate revenues for 2016, such as Supplementary taxes, Investment interest,Payments in Lieu and City of Peterborough Holdings Inc.s return on investmenttotal $12.6 million and are deducted from the $131.5 million net departmentalexpenditures to derive the $118.8 million net tax levy requirements for 2016. Thenet tax levy requirements have increased by 3.4% or $3.9 million compared to2015.

Tax Ratio Reduction Program re-instated for 2016 As directed by Council through the 2016 Budget Guidelines report, the Tax RatioReduction Program that was deferred for the 2015 Operating Budget resumes in2016 for Commercial and Industrial property owners, albeit at a rate that is one-half of the annual reduction that was originally included in the program. Themulti-residential tax ratio remains at the 2011 rate.

That decision, in effect, has added a 0.3% component to the All-inclusiveresidential rate and without any other impacts; the residential tax increase wouldhave been 2.2%.

Effect of assessment growth on the All-inclusive Tax increase

The 2016 estimated real current value assessment growth reduces the All-inclusive Tax increase by 0.6%. The net result is a 0.8% municipal residentialtax rate increase. These impacts are reflected in Chart 1.


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Chart 1Effect of Assessment Growth and Tax Ratio Changes on the All-inclusive Tax increase

Median residential assessment: $228,000

The 2016 Budget is based on current assessment values as of January 1, 2012. Adjustments to market values from January 1, 2008 to 2012 values are beingphased-in equally over the years 2013 2016 with 2016 representing year four.

The assessment used for the 2016 taxation year also reflects an estimated1.00% real growth component for the Residential Class and 0.75% growth in theMulti-residential Property Class as reported to Budget Committee through ReportCPFS15-036 2016 Budget Guidelines dated July 27, 2015.

It is expected that the median residential assessment for a single family dwelling


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annualized water rate increase for 2016. The result is that the average housewill experience a $9.33 (2.2%) increase in their sewer surcharge annual amount

payable over the 2015 level.

Budget Guideline 2.0% + 0.5% = 2.5% All-inclusive increase formedian residential property

When the real assessment growth, the 0.8% proposed municipal residential taxrate increase, 4.5% reduction in the education rate, and no change to the 95%sewer surcharge rate are all considered, the median single family dwelling willsee an All-inclusive 2.5% ($90.14) annual increase ($7.51 monthly) in municipal,education, and sewer surcharge payable.

The 2.5% meets the guideline recommended by the Budget Committee throughReport CPFS15-036 dated July 27, 2015 and approved by Council August 4,2015. The 2.5% All-inclusive (Municipal, Education and Sewer Surcharge) taxincrease is comprised of 2.0% for increased operating costs and traditionalsupport for the capital program and 0.5% for increased tax-supported debtcharges to implement the Capital Financing Policy approved by Council at itsmeeting held April 23, 2012.

How 2.5% All-inclusive rate increase relates to the $3.9 millionincrease in the Net Tax Levy Requirement

The 2.5% All-inclusive rate increase is a reference to the increase that a typicalhomeowner would see on their 2016 tax and water bills for municipal services.Staff would suggest that it is the increase on their municipal tax and sewer


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What does 1% mean?

Both the All-inclusive Tax increase and the Net Tax Levy Requirement are withinthe control of Council.

For 2016, a 1.0% change in the All-inclusive Tax Rate (combined Municipal andEducation Tax on Assessment plus Sewer Surcharge) equates to approximately$1,500,000 in tax supported expenditures. That is, to lower the 2016 proposed2.5% increase to 1.5%, $1,500,000 net tax levy funded expenditures would haveto be cut.

Chart 2 summarizes the residential tax and sewer rates, and resulting levies.


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Chart 2Comparative All Inclusive Tax and Sewer Surcharge Rates andLevies for Median Single Family Dwelling


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Factors impacting 3.4% increase in the tax levy requirement

For the most part, the 2016 Budget as presented maintains the existing levels ofservice while accommodating expenditure increases required to sustain levels ofservice and accommodating any new legislated requirements.

Table 1, lists the major areas reflected in the draft budget that have impacted the2016 tax levy requirement.

The supplementary Notes on pages 13 and 14 provide additional commentary on

key impacts.


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Tax Levy Requirement Change Factors - Supplementary Notes

Personnel costs

Total personnel costs for 2016 will amount to $93.1 million for 1,010.9 employees(full-time equivalents) and represents 37.4% of the total $249.1 million grossexpenditures.

Personnel costs rose for a number of reasons including the estimated impact ofcontract settlements, grid step movements, the annualization of new 2015 hires

and some proposed new hires.

Lines 2.01 Excluding Police, gross personnel costs have increased by $1.3million. Altogether, personnel costs equate to a 1.2% impact on the increase inthe net tax requirement.

Social Services Upload

Lines 3.01 3.02 Social Services caseloads have been budgeted with a zeronet increase and when combined with the continued provincial uploading ofmandatory benefits will result in a savings of $0.9 million.

Capital Financing Policy - Increase in Tax Supported Debt Costs

Line 4.01 A provision has been included in the amount of $0.75 million for taxsupported debt servicing costs for a combined impact of 0.5% on the All-inclusive

Tax Rate.Inflationary Factors/Other Increased Costs


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Other factors affecting the 2016 tax levy requirement

The other impacts shown will be discussed in the 2016 Operating and CapitalBudget (by Department) section of the Highlights Book.

Year-End Transfers

Throughout the Operating Budget, there are many ongoing recommendationsthat Council traditionally approves, to transfer any unused portion of a certainbudget to a specific reserve. The funds in the reserve might be for future capital

works or to draw on and bring into operating in a year where operating costsexceed the budget. These transfers are dependent on the Citys overall year-endfinancial position. These are listed in Part 2 of this Highlights Book, in theirappropriate section.


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2016 Capital Budget: $64.6 million

There are 192 capital projects included in the 2016 Capital Budget for a total costof $64.6 million.

Capital Projects are identified as either a Tangible Capital Asset (TCA) Projector as an Other Capital Project. The segregation gives direction to staff on howto appropriately account for the projects in the Citys books and is an indicator ofhow they will be presented in the Citys audited financial statement.

TCAs are defined as:

real or personal property that have a physical substance that: Are used in the production or supply of goods and services, rental

to others, administrative purposes or for the development andconstruction of other tangible capital assets;

Have an estimated life of greater than one year; and Are used on a continuing basis.

Along with project details, justification and effects on future Operating Budgets,certain projects contain details of Accessibility Considerations. Annually, aspart of the AODA legislation, a multi-year Accessibility Plan must be preparedand updated. When capital projects are being planned, any accessibilityconsiderations are referenced to ensure they are picked up and included in the

Accessibility Plan.

Capital Needs Outweigh Funds Available

When preparing the draft 2016 Capital Budget, the requested capital programf d f d d h il bl f d Th d d


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16

2016 Capital Budget Summary: $64.6 million

The 2016 Capital Financing Supplementary Information section of this Highlights Book provides more information aboutCapital Levy, Tax Supported Debt, Reserve and Reserve Funds, and Development Charge revenues.


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20 Largest 2016 Capital Projects

The $45.2 million in these top 20 projects represents 70.0% of the total $64.6 million Capital Budget.


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19


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2016

Budget Highlights

Part 2


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Part 22016 Operating and Capital (by Department)

Organization ChartWhile preparing for the Budget Committee Reviews, Council is encouraged to reviewthe 2016 Work Programs found in Book 4. At a very high level, the work programsshow Council the outcomes they can expect at the requested levels of funding for eachDepartment.

The following organization chart shows each department and the division within each

department that operate to achieve the work program items.


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22


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City Council - Operating Budget

The City of Peterborough operates on the Council-Chief Administrative Officer systemof municipal government. The Council is comprised of a Mayor and ten Councillors whohold regular Council, Committee of the Whole, and Planning meetings on a three-weekcycle.

The budget includes remuneration for the Mayor and Members of Council, plus aposition for Assistant to the Mayor. Overall, 2016 shows an 11.5% decrease as theprevious positions of Executive Assistant and Councillor Services Assistant positionswere eliminated and restructured into one Assistant to the Mayor position.

Council Remuneration is based on the policy adopted by Council on July 30, 2012based on a Council motion made when discussing Report CP12-005 dated July 23,2012 of the Director of Corporate Services. The motion reads as follows:

That the remuneration be adjusted annually on December 1, based on either theConsumer Price Index all items Ontario, as published by Statistics Canada, forDecember 1, 2012 or the lowest negotiated CUPE settlement, which ever is thelower rate, as determined by the City Treasurer.

As of December 1, 2015, remuneration for the Mayor is estimated to be $68,273 and foreach Councillor $27,955.


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Chief Administrative Officer Departmental Summary Operating Budget

The Chief Administrative Office is comprised of the Chief Administrative Officer, an Administrative Assistant and a Corporate Policy Coordinator. The office is responsiblefor the co-ordination, administration and direction of all affairs of the corporation,

including direct responsibility for Fire Services and Emergency Management.


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Fire Services Division - Operating Budget

There are three stations throughout the city as well as a non-staffed station at theairport.

Personnel are involved in suppression and rescue, prevention, public education,administration, communications, training and emergency management.

The Service will continue to provide fire and emergency dispatch/communicationservices to all eight neighbouring municipalities within Peterborough County.


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26

Fire Apparatus Replacement/Additions

The expenditure in 2016 is for the replacement of a Rescue Pumper.

Fire Fighting Equipment and Personal Protective Equipment (PPE) Program

This program allows for the replacement of decommissioned PPE to ensure firefighters are suitably equipped to remain in-service when their primary set of PPE has been taken out of service for cleaning and/or repairs. Supplying the additional setof required PPE to each firefighter was mandated by the Ministry of Labour in 2013. This is a priority health and safety partof the TCA program.


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Fire Station Relocations and Construction

At its meeting held March 1, 2010, Council adopted a number of recommendations as set out in Report CSF10-001 (b) dated

February 16, 2010 concerning the Station Relocation Review and Implementation.One of the approved recommendations was that the Station Location Review presentation be received for information and beused as a planning guide for the rebuilding and/or relocation of Fire Stations.

Station #3 was moved in August 2012 to a renovated facility on Clonsilla Avenue that provides improved response times tothe west end as well as serving the south end.

As well, report CSF10-001 (b) indicated that Station #2 on Carnegie Avenue would be replaced with annual capital budgetpriorities and scheduled development. The $3.0 million provision shown in 2018 represents the estimated construction costto replace the 45-year old Station. The report also indicated that in 2020 Station #4 would be constructed in East City inconjunction with annual capital budget priorities and scheduled development; however, the project has been deferred until2024 pending the Cold Springs Subdivision Development.


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Emergency and Risk Management Operating Budget

The Emergency and Risk Management Division is responsible for plans, procedures,training and education to ensure the coordination of response and recovery effortsamong government, the private sector and non-government organizations duringcomplex emergencies. This is a legislated requirement under the EmergencyManagement and Civil Protection Act. The Division is also responsible for the corporateinsurance and risk management program, including the acquisition of property,equipment and vehicle insurance, risk management training and programs, and themanagement of incident reports and handling of claims brought against the City.


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Back-up Generators

In 2007, a Generator Purchasing Program was established as a result of an identified need for the City to provide emergencyreception/evacuation centre services, without reliance on resources from outside of the City.

There is no recommendation for 2016, the program will resume in 2017.


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Corporate Services Departmental Summary - Operating

Budget

This Department facilitates coordinated and effective delivery of servicesprovided by the Clerk's Office, Financial Services, Property Services, HumanResources, Corporate Information Services and Facilities and Special Projects.


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position has been budgeted with a net zero tax levy impact and is expected tofully recover at least its cost through additional advertising and sponsorshiprevenues.

The Property Division operating budget includes a $50,000 increase for City Halland Police Station snow clearing. This was previously done by Public Works(PW) staff and will free up PW staff to focus more on City streets and sidewalks.It also includes a $35,000 increase for Custodial Services. These increases areoffset by new revenue of $25,000 for property management of the Simcoe StreetCourt House.

The net increase of 6.9% in Corporate Information Services reflects the increaseof individual applications or systems that are supported and continues to be oneof the significant growth areas over the past five years. This signals that Citystaff are finding new and improved ways to use technology to meet theirbusiness needs. To date, this has been absorbed with minimal or no growth ofIT staff resources; however, the current rate of growth cannot be sustained withcurrent resource levels.

Gross expenditures are $3.0 million with approximately $2.2 million of thisamount being the Citys portion of Peterborough Technology Services (PTS)costs incurred to provide employees and equipment to support the Citystechnology needs. Approximately $1.1 million of total costs incurred is chargedout directly to City Departments where there is a need to allocate specificcharges due to the sharing of costs either with the Province or the County or theactivity receives a fee for the service. The net $1.8 million residing in CorporateServices represents the non-allocated charges.

Recommendation


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The implementation of the Little Lake Master Plan study recommendationswith the construction of shoreline rehabilitation in selected areas of LittleLake. This project is a cooperative initiative with Otonabee Conservation.

These projects are listed in their corresponding divisional capital budgets.


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33

Corporate Services Departmental Summary - Capital Budget


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The 2016 Capital Budget for Property reflects the consolidation of facility costs for numerous Departments/Divisions. Building Assessment Audits have been completed for all major facilities. Completing the work recommended in the audits is subject tothe financing constraints of the capital budget and prioritized in a 20-year plan. The identified items that require repair and/orreplacement are designated per facility.

Among the largest expenditures planned for 2016 are the installation of a new Elevator at City Hall in the amount of$1,083,000, Police Station Window Replacement for $350,000 and Exterior Facade and Window Replacement at theMuseum for $550,000.


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Park Washroom ReplacementBuildings

Resources are recommended in 2017to demolish the existing washroombuilding at Nicholls Oval Park andreplace it with a new facility thatservices all users of the park, includingpersons with a disability.

Construction of New AthleticFacilities

This budget identifies a need for futuresport field development; however, nocommitments have been made on aproject to date. The outcomes ofVISION 2025 for recreation and parkswill help to guide the development ofthis capital initiative as well as thepartners for the project.

Fleming College Sport Fields


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City Departmental Projects

This project includes various projects that business units have requested IT resources to assist with. These requests are foreither implementation of new software that will improve efficiencies or for major upgrades to existing enterprise/businesssystems.


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40

Peterborough Technology Services City Capital Expenditures

Peterborough Technology Services is the Information Technology (IT) department that is jointly operated by the City of

Peterborough and the Peterborough Utilities Group. One of the many benefits of having a shared IT department is there areopportunities to share costs. This capital account is used for hardware, software, labour and miscellaneous costs that areshared between the City and the Peterborough Utilities and the amounts shown represent the Citys portion. An examplewould be capital costs associated with the UNIX server, which hosts corporate applications for both organizations.


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Enterprise Software Modernization

Specific computerized applications due for replacement include:

- Financial Enterprise Resource Planning software - the product has been in use since 1997 and although it has beenupdated at various times throughout the years, it is built on a framework that is outdated and is becoming increasinglydifficult to use to meet today's business requirements.

- Recreation/Point of Sale Software - the product is end of life with the Vendor no longer providing support pastNovember 2017.

- Property Taxation Software - the current product being used meets today's legislative requirements, but does notinclude any of the electronic customer service offerings that are expected in today's business environment.


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42

Corporate Website Refresh

The City's website is a key communication tool for the municipality. www.Peterborough.ca has over 100,000 visitors per

year, who view more than 360,000 pages annually. City residents use the website to access information on City business,register for programs, pay parking tickets and purchase products and services. Increasingly, we are using the website toengage in two-way communication with residents through online surveys and links with social media.

The City's website is more than ten years old and is beginning to lag behind current expectations in both functionality anddesign. A website refresh is required to address these issues.

Participatory Budgeting

On May 19, Council approved the recommendations outlined in Report CPFS15-019, dated May 11, 2015 of the Director ofCorporate Services as follows:

a) That a Participatory Budgeting (PB) Pilot be introduced in 2016 in each of the five City Wards and that the draft 2016Capital Budget includes funding for the project.

b) That each Ward be allocated an amount of $20,000 in capital funding for community improvement projects identifiedthrough a Participatory Budgeting Process.


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Fairhaven Capital Funding

As part of Report CPFS12-062 dated September 4, 2012, Council resolved that beginning with 2013, subsequent draftCapital Budgets include a provision for on-going capital funding for Fairhaven. The current provision is $192,200.


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44

Kawartha Trades and Technology Centre (KTTC)

Through Report CAO14-015 dated July 28, 2014, Council approved the funding agreement and the payment of the first

installment of $333,300. The 2016 Draft Capital Budget includes the third and final installment of $331,400.Phase-in of Development Charges

In consideration of Report CPFS12-056 Development Charges, Council approved a phase-in of the City-Wide Uniform Chargeas follows: August 1, 2012 0%, January 1, 2013 50%, January 1, 2014 50%.

The phase-in of the rates resulted in lost Development Charge revenues amounting to $1.3 million.

In Section 5 (6) 3, the Act also states:

If the development charge by-law will exempt a type of development, phase in a development charge or otherwiseprovide for a type of development to have a lower development charge than is allowed, the rules for determiningdevelopment charges may not provide for any resulting shortfall to be made up through higher development chargesfor other development.

The effect of this provision is to ensure that phase-ins are funded from non-DC sources. This capital project is to fund thephase-in amount by transferring an equal amount into the Development Charge Reserve over the period 2015- 2018.

Hospice Peterborough Funding Request

Based on Report CPFS15-036 2016 Budget Guidelines dated July 27, 2015, Council approved the followingrecommendation:

That, with respect to the Hospice Peterborough Renovation Project,

i) the City commit, in principle, to provide $1.5 million toward the project construction costs over a three-year period 2016to 2018, subject to a satisfactory funding agreement being reached, and

ii) That the 2016 Draft Capital Budget includes the first $500,000 annual contribution.


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Legal Services Departmental Summary Operating Budget

The Office of the City Solicitor (OCS) provides legal advice and general legal services tothe Corporation, Council and various local boards. This Division also represents theCity as counsel and advocate before the courts and administrative tribunals.


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As a member of the Risk Management Committee, the OCS works closely with theInsurance and Risk Management Coordinator on claims management involving litigationand insurance coverage for contractual and other risk management documents.

Staff negotiated a three-year lease extension with the Ministry of the Attorney Generalfor its continued use of 70 Simcoe Street until December 2017. After that time, 70Simcoe Street may then become available to assist with overcrowding of the POAOffice and lack of court time. As such, a POA Facility Needs Study has been budgetedfor $25,000 in the 2016 Capital Budget.


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Utility Services Departmental Summary Operating Budget

The Utility Services Department provides a wide range of services and has a grossoperating budget amounting to $55.3 million.


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Utility Services Departmental Summary Capital Budget


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Utility Services Administration - Operating BudgetThe Office of the Utility Services Director directs, manages and coordinates theprovision of transit, transportation services, waste management, public works andenvironmental protection activities as well as the construction and maintenance of allpublic infrastructure in the City (except for water treatment/distribution and the electricalsystems).

The tenant lease currently in place at the 791 Webber Avenue location expires early in


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51

Street Light Review and Upgrade

A large percentage of the existing street light infrastructure is approaching or has past its useful life. In addition, there arecost benefits available with some of the new light sources now coming onto the market.

In 2012, the City updated existing inventory information so that an appropriate asset management regime can be developed.In 2013, the City completed a condition rating of the street lighting infrastructure. Based on the condition ratingrecommendations, a number of streetlight poles will be replaced in 2016.

An assessment of new light sources is on-going. A new pilot project was initiated in 2015 to test specific LED lights. Theretrofit to LED technology is expected to be done in partnership with an entity for the supply and installation of equipment.

Associated with this retrofit, some upgrades to the aging infrastructure will be required.

P 2


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Emerald Ash Borer (EAB) Management Plan

On September 30, 2013, Council, in considering Report USDIR13-012, directedstaff to proceed with a revised EAB Management Plan. Using more up-to-dateinformation, and examining alternative management scenarios, staff was able toretain all the elements of the original Management Plan yet reduce the ten-yearcost by about $1 million.

The EAB Management Plan combines knowledge of the EAB lifecycle with goodforestry practices and cost containment to provide a viable process for dealingwith the EAB and the Ash tree component of our urban forest.

The Urban Forest Specialist is a 3-year (April 9, 2013 to April 3, 2016) contract position that is supported by the Emerald AshBorer (EAB) capital program and was established to lead the preparation of an EAB Management Plan.

Emerald Ash Borer

P t 2


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The Management Plan has been adopted by Council and the Urban Forest Specialist has taken on many aspects of urbanforestry beyond EAB such as tree evaluations for road construction projects, tree risk assessments and advancement ofmany Urban Forest Strategic Plan recommendations. Moving this position from a temporary (contract) to a permanent

position will ensure the City is well situated in fight against EAB and that the principles and policies established in the UrbanForestry Strategic Plan continue to move forward.

P t 2


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Part 2


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Bears - Marina Boulevard Major Storm System By-Pass

The Bears Creek Flood Reduction Master Plan was approved by Council on March 25, 2008 through Report USEC08-005.

Report USEC14-006 entitled Flood Reduction Watershed EA Capital Projects Update adopted by Council on April 7, 2014prioritized the watershed capital projects.

As described in Council Report CPFS 15-043, the City is currently pursuing external funding through the Province for thisproject.

Part 2


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CCTV Inspection of Pipes (A-230)The sanitary sewer system is now on a six-year cycle of regular inspections. Problem areas are identified during inspections.Based on these CCTV inspections, remedial plans to address problems in the sanitary sewer system are developed andimplemented.


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Engineering, Construction and Infrastructure Planning Divisions -Operating Budget

This Division manages the maintenance, rehabilitation and development of the Citysroad, sidewalk, sewer and storm water facilities. In addition they provide theengineering review for all development applications and maintain the Citys streetlightinfrastructure.

Part 2


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Part 2


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Parkhill Road West - Wallis Drive to West City Limit

Major reconstruction and urbanization of Parkhill Road is required to improve the safe operation of this road, provide betterstorm drainage control, and to service new development within the Jackson Planning Area. This project will involve pavement,curb/gutter, sidewalk(s), bike lanes, storm and sanitary sewers, turning lanes and signalization. The vertical alignment of theroad will be improved and an urban cross section will be constructed.

Part 2


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Chemong Road Parkhill Road West to Parkway Right of Way

Major reconstruction to widen this road to five lanes of traffic, by the introduction of a centre turn lane, was identified in the

Transportation Master Plan. This work is necessitated by an increase in traffic volumes and commercial properties.The project cost will be more accurately defined during completion of the detailed design. It is also anticipated that floodreduction measures will be required as well as sanitary sewer upgrades to address the bottleneck issue within the existingsystem. Integration with the planned Parkway project will also guide the design of this project. The development andinfluence of the Parkway project has allowed the Chemong Road reconstruction to be deferred from its original schedule.

Ashburnham Drive - Lansdowne Street to Maria Street

This work includes major reconstruction to a two lane urban arterial. Through Report USEC15-005, dated March 30, 2015,Council pre-committed $2,960,000 towards the project in 2016. The project involves asphalt pavement, concrete curb andgutter, sidewalk(s), bike lanes, storm/sanitary sewers and turning lanes with signalization. This project will improve the roadlevel of service along the north/south arterial street to an urban cross section.

Detailed design occurred in 2014 along with property acquisition, tree clearing and utility relocations. In 2015, tendering ofthe full project limits was completed and awarded. Construction began in 2015 and is expected to be completed in 2016.The majority of the funds requested in 2016 (except for $70,000 were preapproved by Council during consideration of ReportUSEC15-005.

Brealey Drive Urbanization Lansdowne Street West to Stenson Boulevard/Sir Sandford Fleming College Entrance

Detailed design occurred in 2014 along with property acquisition, tree clearing and utility relocations. In 2015, tendering ofthe full project limits was completed and awarded. Construction began in 2015 and is expected to be completed in 2016.The majority of the funds requested in 2016 (except of $70,000 were preapproved by Council during consideration of ReportUSEC15-004.

This project includes major reconstruction to a two lane urban arterial. The project will involve asphalt pavement, concretecurb and gutter, sidewalk(s), a multi-use trail, storm sewers and turning lanes with signalization.

Part 2


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Armour Road - Nassau Mills Road South to Rotary Trail

This project is for the construction of a partially realigned two lane urban arterial with sidewalk(s), bikeway, storm sewer, etc.

Construction timing is dependent upon the rate of development in the Auburn Secondary Plan area, particularly the formerDafoe property and development of the City Arena Complex and Trent Research and Innovation Park. To facilitate thestormwater management issue as well as access points to the secondary plan development, the City is securing funds for theEnvironmental Assessment (EA). This EA (or equivalent through the planning process) will provide the ultimate Armour Roadalignment, access points for the developers and stormwater management in the area of a Zone 1 water intake area. This EAwill be coordinated with the Nassau Mills Bridge projects (Ref. 5-4.02 and 5-4.03).

Greater detail on design, utility relocations/property acquisition and construction will be provided when more accurateinformation is available regarding the timing for development of the Auburn Secondary Plan area.

Part 2


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2016 Operating and Capital (by Department)

62

Various Road ResurfacingThe Roads Needs Study included detailed pavement condition reports for each road. A Pavement Condition Index wascreated for each road section based on the field data collected ranging from zero (Failed) to 100 (Perfect).

Part 2


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Based on the Pavement Condition Index and Pavement Deterioration Models, various pavement management categories areassigned to each road section to determine the overall best maintenance and rehabilitation planning scenario. 2016 will alsoinclude re-inspection of our arterial roads and a portion of our local roads. Re-inspection information will be utilized for

subsequent resurfacing programs.The Resurfacing Program is identified through the Citys overall Road Needs Study. In general, the road resurfacing budgetwill be allocated to streets which require surface treatment only or to streets involved with underground infrastructurereplacement/rehabilitation where additional paving is desirable.

Part 2


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Donegal Street Bridge over Jackson Creek

The 2005 Bridge Inspection Program identified the Donegal Street Bridge for rehabilitation. The Donegal Street Bridge wasconstructed around 1935 and has never been rehabilitated or repaired over its life.

Previous budgets have allocated funding to the bridge rehabilitation. The 2016 funding is required to expand the scope of therehabilitation to include the approach elements of the bridge.

Part 2


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Nassau Mills Road Bridge over Otonabee River

The 2011 Transportation Master Plan concluded that a new four lane bridge, and widening of Nassau Mills Road fromUniversity Road to Armour Road to four lanes, will be required at this location by 2021.

To facilitate construction of a new bridge at this location, the City must complete a Schedule C Class Environmental Assessment (EA) and is proposed that this be coordinated with the Armour Road project (Ref. 5-2.16). It is proposed to beginthe