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Executive Summary

2016 Operating Budget and 2017 – 2018 Forecast

The 2016 Budget Discussion Document presents the proposed 2016 operating budget, 2017-2018 forecasts and the 2016 Capital Budget for the Town of Oakville. The document represents the outcome of the 2016 staff budget process, presenting the budget recommended by staff, for public comment and the review and approval of the Budget Committee and Council. As in prior years, the 2016 budget has been prepared using a performance based program based budgeting (PB2) methodology. PB2 focuses on programs rather than departments and traditional line item budgeting. Emphasis is on the allocation of resources to programs based on desired outcomes and measurement of actual program results against expected outcomes. Performance measures are included in the budget document for all town programs.

Overall, the 2016 operating and capital budgets ensure the town’s strong financial position is maintained and our residents continue to receive the programs and services they value. The 2016 budget has been prepared in accordance with Council direction to prepare the budget with overall property tax increase in line with inflation. Assessment growth resulting from additional properties added to the roll or expansions/additions to existing properties reduces the overall tax increase. The 2016 staff recommended budget includes assessment growth of 1.92%.

The total proposed 2016 tax increase to the town’s budget net of assessment growth is 2.45%. When combined with the proposed increase for the Region and Education the overall tax increase is 1.68%.

The program business plans include a detailed budget for 2016 and a forecast by program and service for 2017 and 2018. Business plans for each program provide information on the purpose of the program, define existing service levels and identify strategic initiatives linked to the town’s strategic plan. PB2 performance measures for each program are also included in the business plans. OVERALL TOWN BUDGET The town base budget is made up of two components. The first provides for the same level of service as provided in 2015. Program spending at this level reflects the costs to deliver the same level of service as previous years. Increases in program spending and resulting tax levy requirements are driven by the costs of materials and supplies, contracted and other purchased services as well as labour costs. Changes in revenue from user fees and other sources also impact the tax requirement. In addition, the base budget includes the impact of decisions made in previous years such as the annualized impact of service adjustments and the operating impacts of new facilities and infrastructure resulting from completed capital projects and infrastructure assumed through the development process.

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To maintain existing service levels, the tax levy requirement for this component is $170.2 million. The increase of $5.1 million or 1.16% after assessment growth is below the current rate of core inflation. The tax impact of the increase on the town’s base budget of 1.16% has an impact on the overall tax bill of 0.46% or $3.93 per $100,000 of assessment.

Table 1 – Total Tax Impact of Proposed Budget

PurposeShare of Tax Bill Increase

Impact on Total Bill

$ Increase per $100,000 of Assessment

Town of Oakville 40.0%Inflationary Impacts/Revenue Adjustment 1.75% 0.70% $5.95Annualized Impact of 2015 Service Adjustments 0.08% 0.03% $0.26Capital Driven Operating Costs for New Infrastructure 1.25% 0.50% $4.25Assessment Growth -1.92% -0.77% ($6.53)

Total Base Operating Budget 1.16% 0.46% $3.93Capital Levy 1.00% 0.40% $3.40Additional Funding for Road Resurfacing 0.15% 0.06% $0.51Service Adjustments 0.14% 0.06% $0.48

Total Town of Oakville* 40.0% 2.45% 0.98% $8.32

Region of Halton** 37.0% 1.9% 0.70% $5.98

Education 23.0% 0.00% 0.00% $0.00Total * 1.68% $14.29*Exclusive of reassessment impacts**Proposed Region of Halton total tax increase

The second component of the budget is the increased funding for the maintenance and replacement of aging infrastructure, demands for new infrastructure and service adjustments required as the town grows. The base budget includes an additional $1.9 million for the 1% capital levy

and increased funding for the road resurfacing program. The capital levies are an important source of funding for the town’s capital program and help ensure the infrastructure gap faced by municipalities does not continue to grow. While these levies are a very important source of funding for infrastructure renewal and the town’s share of growth related capital projects, they represent an additional 1.15% of the proposed tax increase on the town’s portion of the tax bill and 0.46% or $3.91 on the overall tax bill. The service adjustments required to ensure service delivery is maintained as the town grows adds an additional 0.14% to the town tax levy, resulting in a 0.06% impact or $0.48 on the overall tax bill. In total this component of the budget adds 1.29% to the town portion of the tax bill and 0.52% to the overall bill.

Table 1 presents a summary of the total tax impact of the proposed budget, including the anticipated increases in the Region of Halton tax budget and education rates. The cost associated with each item is outlined below.

Inflationary Impacts/Revenue Adjustments

While Canada’s inflation rate slowed in September due to the drop in gasoline prices, core inflation which excludes eight volatile products such as gasoline, tobacco and mortgage interest remained at 2.1%. In the Bank of Canada’s most recent monetary policy report core inflation was forecast to remain in the 2% to 2.1% range throughout 2016. This is higher than the forecast in their July report which showed core inflation in the 1.9% range for 2016. The town’s budget process takes many

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months to complete. At the time of budget development the guideline was set at 1.9% for the overall tax levy increase in line with core inflation projections at that time. The budget as presented is below the 1.9% target and more recent projections. Inflationary pressures and adjustments on the town’s base budget total 3.5%. This has been partially offset by an increase to program rates and fees and revenue adjustments bringing the net increase to 1.75%, resulting in an increase of 0.70% on the overall tax bill or an increase of $5.95 on each $100,000 of assessment.

The inflationary impacts provide for the town’s personnel costs which are driven by collective agreements with the town’s four unions. These contracts provide for annual cost of living increases, as well as movement through salary grids and negotiated benefit coverage. The town typically negotiates longer term contracts to ensure stability. Personnel costs account for 47.9% of gross expenditures and represent the largest component of inflationary increases. A total of eight positions have been gapped in the base budget. These positions in the Community Development Commission will remain gapped until development activity increases to the point new staff are required to meet development application and permit timelines. In addition to the gapped positions, $850,000 has been included in the

budget to reflect the time positions are vacant due to employee turnover within the organization. These measures have resulted in a $2.3 million reduction in personnel costs. Many of the materials and supplies that the town uses are construction related. The construction price index for Ontario has increased by 1.8% over the last year. There is also increased pressure on the budget due to inflation on utilities, materials, supplies and purchased services. The cost increases on materials and supplies has been partially offset by a reduction in fuel prices and the towns’ insurance premiums.

Activity Revenue The 2016 base budget incorporates proposed rates and fee increases. Rates and fees will be reviewed by the Budget Committee at its meeting on November 18, 2015 and its recommendations forwarded to Council for approval on December 14, 2015. Many of these fee increases are effective January 1, 2016 and are required to maintain or improve the cost recovery of town programs. The fee increases, if approved as proposed, result in an additional $0.96 million in revenue. In addition to the fee increase, volume adjustments were made to program revenue budgets where applicable. The largest increase due to anticipated volume can be seen Transit followed by Recreation and Culture. The increased revenue has been offset by a reduction in anticipated revenue in Planning and Building Services, reflecting revised fees and an anticipated reduction in development activity in 2016. These adjustments have reduced the overall increase in activity revenue to $421,500.

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Annualized Impact of 2015 Service Adjustments The 2016 base budget includes the annualized impact of increased staffing in Fleet approved in 2015. This along with a small impact related to a Fire Fit/Rope Rescue Tower approved in 2015 adds $124,700 to the 2016 recommended budget resulting in a 0.08% increase on the town tax levy and 0.03% on the overall tax bill. Capital Driven Operating Costs for New Infrastructure The base budget includes the operating costs for new infrastructure and programs completed as part of the capital budget. The 2016 operating impacts total $2.1 million and include the cost of maintaining new roads and parks added to the town in 2015, software support costs as well as the impact of the operation and replacement of new transit buses and fleet equipment. The phased in contribution to the building replacement reserve for new facilities built within the past five years is also included in this amount. This includes the contribution for QEPCCC, the transit facility and North Park Operations Centre and Temporary Fire Station 9. The operating impacts add 1.25% to the town’s base budget, resulting in an increase of 0.50% on the overall tax bill or an increase of $4.25 per $100,000 of assessment.

Assessment Growth from New Development New development within the town results in an increase in the town’s assessment base. New assessment generates additional tax revenue without an increase in the town’s tax

rate. Assessment growth of 1.92% has been included in the staff recommended budget based on preliminary numbers from the Municipal Property Assessment Corporation (MPAC). Capital Levy The town implemented a 1% capital levy in 1996. This program recognized the need to set aside additional funding to pay for both the replacement of aging infrastructure as well as demands for new infrastructure, including recreational and other facilities. A capital levy policy is considered a best practice in municipal financing. The capital levy provides an increasing source of funding to address infrastructure renewal and helps ensure that funding is available to replace assets as required based on the town’s asset management plan. The capital levy has a 1% impact on the town’s tax rate, or 0.4% impact on the total tax rate or $3.40 per $100,000 of assessment. In addition to the 1% capital levy, the base budget also includes an additional transfer to capital to fund increased road resurfacing as recommended by the Budget Committee and Council in 2010. Service Adjustments The staff recommended budget also includes service adjustments required to ensure service delivery levels are maintained as the town grows. The adjustments have been included in the proposed budget for Council consideration through the budget process. They include part time positions required to keep up with the demand for recreation programs, staffing required to maintain service levels in Forestry and

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Infrastructure Maintenance as well as funding to increase the number of Council newsletters. The adjustments total $236,800, adding 0.14% to the town tax levy, resulting in a 0.06% increase on the overall tax bill or $0.48 per $100,000 of assessment. In addition to the service adjustments there is one new request related to business development. If approved the request would add $50,000 to the proposed budget. SUMMARY The proposed 2016 budget results in a 2.45% tax increase on the town’s share of the property tax bill after assessment growth. The town budget represents approximately 40% of the total property tax bill. As a result the proposed increase equates to a 0.98% increase on the total tax bill. Overall, the total tax increase including the proposed increase for the Region of Halton and assuming no increase in education rates is 1.68%. PERFORMANCE BASED PROGRAM BASED BUDGET The 2016 budget was prepared using the performance based program based budgeting (PB2) methodology. The 2016 budget and the forecasts for 2017 and 2018 focus on programs, and the services within each program, rather than departments and line item expenditures. In preparing the 2016 budget and 2017 and 2018 forecasts, emphasis is on allocating resources to programs based on the goals and objectives to be achieved by the program.

A key component of PB2 is the development of performance indicators to measure how well programs are meeting objectives. The program business plans and resulting program budgets are based on achieving the priorities in the town’s strategic plan and each new initiative in the budget is tied to a strategic objective. Performance measures have been included in each program business plan. The measures show the five year trend for key outcomes based on the approved budget for the program. The business plans also provide information on the purpose of the program, services delivered by the program and define existing service levels.

Program Budget Highlights The net base budget has increased by $7.2 million. Four programs account for approximately $5 million of the increase.

The largest program increase is in the Infrastructure Maintenance program at $1.65 million and includes the annualized impact of new positions approved in 2015, the cost to maintain new roads assumed through growth as well as increased costs associated with winter control, leaf pick-up and signal maintenance. The next largest increase is in Oakville Transit and includes the 2016 cost associated with the 5 year Transit service plan approved in principle by Council in the spring. The plan provides for increased service to residents and is expected to increase the cost recovery of the program over the next five years. The 2016 budget includes the additional staff

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required to meet service delivery targets as well as the cost of maintaining and operating new buses identified in the plan. Overall the net increase in this program is $1.57 million.

The third largest program increase is Emergency Services. This program has increased $1.01 million primarily due to increased personnel costs. This includes wage and benefit adjustments as well as the extension of a contract emergency management position required to implement a corporate incident management system. An increase to the fire equipment reserve has also been budgeted to ensure sufficient funding is available to replace vehicles and equipment as required.

Finally the fourth largest program increase is in Information Systems + Solutions at $0.7 million. The increase includes additional staff required to maintain new system applications approved through the capital budget such as Open Data, PCI Certification Compliance and Corporate Document Management. The balance of the increase is primarily driven by software maintenance cost increases as well as maintenance costs associated with new software.

The balance of the increase is spread between the remaining programs. Further details can be found in the program business plans.

Table 2 on the next page shows the breakdown of the increased tax requirement for the base budget by program.

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Table 2 - Net Base Budget Increase By Program (millions)

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2016 Tax Levy Requirement The total 2016 tax levy requirement to support town programs is $172.3 million and is shown by program in Table 11 on page E-20. The forecasts for 2017 and 2018 are shown in Table 13 on page E-22. Table 3 below shows how much of each tax dollar is spent on specific town services. The allocation of tax dollars differs from the allocation of gross expenditures as many town programs are supported partially or entirely from user fees. The largest share of the tax dollar is spent on Infrastructure Renewal followed by Emergency Services.

Table 3 – How Your Tax Dollars Are Spent

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2016 BUDGET COMMITTEE PROCESS The recommendations included in this book reflect the direction to date provided by Council through its Budget Committee. The budget process provides the Committee with the opportunity to provide further direction and request additional information from staff. The capital budget was reviewed by the Committee in October and will be deliberated on with the operating budget on December 7, 2015. The following meetings have been scheduled for the review of the 2016 Budget:

• November 18, 2015 – Distribution of Operating Budget Document

and Overview Presentation – Rates and Fees

• November 19, 2015 – Staff Presentations

• November 30, 2015 – Public Delegations

• December 2, 2015 – Public Delegations

• December 7, 2015 – Deliberations and Recommendations

• Council Approval – December 14, 2015

Residents can also contribute by email to [email protected].

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mailto:[email protected]

Executive Summary


Total 2016 Operating Expenditures by Cost Component

The gross expenditures proposed in the 2016 operating budget total $297.7 million including service adjustments for the town’s 26 programs.

The chart on page E-11 (Table 4) shows the town’s total 2016 base operating budget expenditures by cost component. In total gross expenditures have increased by $14.1 million. The details are provided in Table 10 on page E-19. The forecast budget for 2017 and 2018 is shown in Table 12 on page E-21. Salaries and Benefits account for 47.9% or $142.6 million of the operating budget. This is an increase of $5.3 million over 2015 as a result of anticipated wage and benefit costs, movement through salary grids, and the cost of positions required as a result of growth in the municipality, software implementations and capital infrastructure. Purchased Services includes costs for items such as communication, contracted services, professional fees, training and development, insurance and printing. Purchased Services comprise 11.4% of the budget and have increased $2.8 million due to inflationary pressures, costs associated with winter control and software maintenance. Materials and Supplies include expenditures for utilities, fuel, office supplies, construction and other materials. They represent 7.3% of the town’s gross expenditures and have

increased by $211,100. Fuel budgets have been reduced to reflect the reduction in fuel prices seen over the past year and expected to continue in 2016. This has minimized the impact of inflation on this expenditure category. Other expenditures include community grants, financial expenses and debt charges. The full year debt charges for the new hospital are included in this expenditure category. As mentioned previously the debt servicing costs are funded through an additional dividend from Oakville Hydro and reserves. Transfers to reserves including provisions for future expenditures, e.g. equipment replacement and transfers to tax stabilization reserves account for 12.1% of expenditures. The capital from operating includes the funding transferred to the capital budget of $26 million and minor capital in the operating budget of $200,000 and accounts for 8.8% of expenditures. The increase in expenditures is offset by an increase in revenues including activity revenue which has increased by $421,500. Activity revenue includes items such as Recreation and Culture user fees, Transit fares and Planning application fees. The increase in activity revenue in many programs has been offset by a reduction in revenue in Planning and Building Services. Revenue in these programs has decreased by $2.5 million due to application and permit volume reductions and revised planning fees.

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Table 4 - Total Operating Expenditures by Cost Component, $297.7 Million

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Table 5 - 2016 Operating Budget by Funding Source, $297.7 Million

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Total 2016 Operating Revenues

Table 5 shown on the previous page illustrates the funding sources for the 2016 operating budget. Taxation revenues provide 57.9% (2015 – 58.2%) of the funding. Fees and charges are the next largest source of funding at $67.1 million or 22.5%. Included in the fees and charges are increases to maintain cost recovery ratios for all programs. The 2016 budget includes a $5.2 million dividend from Oakville Hydro of which $1.9 million is included in the base budget. The balance of the dividend supports the hospital debt charges.

SERVICE ADJUSTMENTS The demand for new programs and services is continuing to grow. Every year the town must identify the costs to provide programs and services to its newest residents, while also responding to demands for new programs and services from current residents. In addition, requests for new programs or services may be the result of legislative requirements or to address health and safety concerns. The proposed budget includes service adjustments totaling $236,800. They are included in the recommended budget as they have been identified by departments as necessary to meet demand for service as the town grows. The adjustments are identified below for consideration by the Budget Committee and Council. In addition to the service adjustments included in the proposed budget there is one new request for the Committee’s consideration. The request of $50,000 for business development funding is shown below and would bring the town increase to 2.48% and the overall increase to 1.69%.

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Table 6 – Summary of Service Adjustments

Department

Full-Time FTE

Impact

Part-time FTE

Impact Title2016 Gross

Impact2016 Net Impact 2017 Impact

Parking Outsource Overnight Parking Permit Requests 75,000 Mayor and Council Increase the number of Newsletters 83,900 83,900 FCM 1.0 Project Manager Non Union 114,000 IS&S 1.0 Senior Business Analyst 114,400 IS&S 1.0 Non Union Senior Business Analyst 109,100 Parks and Open Space 1.0 Forestry Information Analyst 101,500 25,400 Infrastructure Maintenance 1.0 Works Infrastructure Technician 80,400 Recreation 1.0 (1.0) Recreation Assistant - Conversion of PT Leagues Position 19,500 19,500 19,500 Various 5.8 Part-time adjustments to meet service needs 205,000 108,000

Total 6.0 4.8 902,800$ 236,800$ 19,500$ New Requests

Mayor and Council Business Development

Increased Service To allow the Mayor’s office to move Oakville in a direction that leverages the strengths of the towns assets and to create a favourable environment for business attraction and retention while allowing Oakville to maintain its competitive position in the marketplace.

Tax Levy 50,000$ 50,000$ Funding Source FTE

Gross Operating

Net Operating Program Service Request Type Description

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BUDGET COMMITTEE REFERRALS

During the course of 2015, items have been referred to the Budget Committee for consideration. Table 7 is a list of items referred to the Budget Committee for consideration during the 2016 budget review process.

Table 7 - 2016 Budget Committee Referrals

Support for the Memorial Monument for the 150th Anniversary of the Lorne Scots Regiment

Council 09/21/2015

Parks and Open Space

Staff report to the Budget Committee regarding the proposal including funding and installation of a Regimental Memorial monument.

2015 Budget Deliberations 2015 Budget Committee 03/23/2015

Roads and Works

That staff provide options for project financing through the ESCo and report back to Council prior to the 2016 budget.

Bronte Marina Building (Formerly Metro Marine)

P and D 9/8/2014

Facilities and Construction Management

That additional repairs required to bring the building to a state of good repair be referred to the 2016 capital budget;

2015 Budget Deliberations 2015 Budget Committee (03/23/15)

Clerk’s Department

That staff report to the 2016 Budget Committee with options to provide by-law enforcement during evenings and weekends.


Finance Department and E & C Department

That staff report back on the ability to include the Wyecroft Road Extension capital project in the 2016 – 2025 capital forecast.


Finance Department

. That, in addition to Council’s direction to keep overall property taxes in line with inflation for 2016, the 2017 and 2018 budgets be prepared keeping overall property tax increases in line with inflation.

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2016 Capital Budget Commissioner Presentations

2016 Budget Committee 10/21/15

Finance Department

That staff advise what projects to bring forward for federal funding that have no or low impact on operating budgets and generally meet the criteria of being transit, environmental, such as storm water, etc., and recreation and social or cultural facilities, or energy efficiency, such as LED conversion.


Engineering & Construction

That staff identify projects that are or could be made shovel ready should infrastructure funding become available and report back on any steps that would be necessary to make projects shovel ready such as the Wyecroft Road Extension capital project.


Engineering & Construction

. That funding for the road resurfacing program be referred to the 10 year capital plan process and that staff report on funding for the program beyond the $10,000,000 annual level for 2020 and beyond.

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FORECAST FOR 2017 AND 2018 The Budget Document also includes a forecast of the 2017 and 2018 operating budgets, incorporating inflation, related expenditure increases and the increased operating costs resulting from capital projects undertaken in 2016 and 2017.

The forecasted increase for 2017 is 3.73% and 4.66% in 2018 net of assessment growth, for base budget purposes only. The overall increase including the region and education is projected to be 2.31% in 2017 and 2.72% in 2018.

These increases are largely due to new infrastructure constructed as part of the capital budget and inflationary adjustments. Table 8 shows the total base budget increase for 2016, 2017 and 2018 by cost driver.

Table 8 - Forecast Budget Increase

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Table 9 shows the projected overall tax impact in 2017 and 2018, including the town’s base budget and the forecast increases for the Region of Halton and Education tax requirements. As noted above, the overall increase including the region and education is projected to be 2.31% in 2017 and 2.72% in 2018. Table 9 – Overall Tax Impact

2016 Requested

Budget

2017 Forecast Budget

2018 Forecast Budget

Inflationary Impacts/Revenue Adjustment 1.75% 2.64% 2.89%

Annualized Cost of New Services Approved in Prior Year 0.08% 0.01%

Capital Driven Operating Costs for New Infrastructure 1.25% 0.94% 1.63%

Assessment Growth -1.92% -1.00% -1.00%

Total Base Operating Budget 1.16% 2.59% 3.52%

Capital Levy/Additional Road Resurfacing Funding 1.15% 1.14% 1.14%

Service Adjustments 0.14%

Total Recommended Budget 2.45% 3.73% 4.66%

Total Town Budget 2.45% 3.73% 4.66%

Province of Ontario 0.00% 0.00% 0.00%

Region of Halton (1) 1.90% 2.20% 2.30%

Overall Tax Bill Impact (%)(2) 1.68% 2.31% 2.72%

Overall Tax Bill Impact ($'s per $100,000 of assessment)(3) $14.29 $19.93 $24.00(1) Based on Region's forecast increase for 2017 and 2018 identified in 2016 budget(2) Total Tax Bill is 37.02% Region. 40.02 Town, 22.96% Education(3) Exclusive of reassessment impactsTable may not add due to rounding

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Table 10 - 2016 Operating Budget by Program 2015 2016 Base 2016 2016 2015 - 2016

Restated Base Budget Service Requested ChangeBudget Budget Change Adjustments Budget (%)

EXPENDITURE BY PROGRAMPolitical Governance 3,430,600 3,634,200 5.9% 83,900 3,718,100 8.4%Administrative Executive Management 1,860,600 1,871,200 0.6% 0 1,871,200 0.6%Service Oakville 801,900 885,400 10.4% 22,900 908,300 13.3%Strategy, Policy & Communications 1,249,900 1,271,400 1.7% 0 1,271,400 1.7%Human Resources 2,433,300 2,478,300 1.8% 0 2,478,300 1.8%Regulatory Services 2,737,600 2,658,500 -2.9% 0 2,658,500 -2.9%Financial Services 6,343,400 6,517,300 2.7% 0 6,517,300 2.7%Environmental Policy 973,100 954,600 -1.9% 0 954,600 -1.9%Legal Services 2,008,600 2,208,100 9.9% 0 2,208,100 9.9%Information Systems + Solutions 8,462,300 9,122,600 7.8% 223,500 9,346,100 10.4%Facilities & Construction Management 4,058,600 4,034,300 -0.6% 114,000 4,148,300 2.2%Emergency Services 33,799,300 34,789,000 2.9% 0 34,789,000 2.9%Recreation Services 29,429,000 30,402,700 3.3% 136,200 30,538,900 3.8%Culture 6,072,000 6,283,000 3.5% 0 6,283,000 3.5%Library 9,074,400 9,121,600 0.5% 17,000 9,138,600 0.7%Parks & Open Space 21,858,800 22,879,800 4.7% 124,500 23,004,300 5.2%Infrastructure Maintenance 30,506,600 32,689,700 7.2% 0 32,689,700 7.2%Infrastructure Planning & Improvements 3,352,000 3,390,200 1.1% 0 3,390,200 1.1%Parking 4,175,300 4,464,000 6.9% 75,000 4,539,000 8.7%Oakville Transit 28,489,200 31,109,600 9.2% 0 31,109,600 9.2%Strategic Business Support 1,035,600 1,053,500 1.7% 0 1,053,500 1.7%Building Services 10,236,700 9,579,700 -6.4% 0 9,579,700 -6.4%Planning Services 6,850,100 6,715,100 -2.0% 0 6,715,100 -2.0%Development Engineering 4,470,000 4,681,900 4.7% 0 4,681,900 4.7%Economic Development 702,400 728,700 3.7% 0 728,700 3.7%Corporate Revenue & Expenses 59,160,200 63,353,400 7.1% 0 63,353,400 7.1%Total EXPENDITURE BY PROGRAM 283,571,500 296,877,800 4.7% 797,000 297,674,800 5.0%

REVENUES Activity Revenue 60,373,600 60,715,100 0.6% 80,000 60,795,100 0.7% Internal Recoveries 21,681,600 23,069,500 6.4% 388,200 23,457,700 8.2% Grants 826,400 860,700 4.2% 0 860,700 4.2% Other Revenue 35,571,700 40,139,200 12.8% 92,000 40,231,200 13.1%Total Revenues 118,453,300 124,784,500 5.3% 560,200 125,344,700 5.8%Tax Levy Requirement 165,118,200 172,093,300 4.2% 236,800 172,330,100 4.4% Assessment Growth -1.92%Tax Levy Requirement 2.45% E - 19

Executive Summary


Table 11 – 2016 Operating Budget –Tax Levy by Program 2015 2016 Base 2016 2016 2015 - 2016

Restated Base Budget Service Requested ChangeBudget Budget Change (%) Adjustments Budget (%)

TAX LEVY BY PROGRAMPolitical Governance 3,413,700 3,621,600 6.1% 83,900 3,705,500 8.5%Administrative Executive Management 1,817,100 1,825,700 0.5% 0 1,825,700 0.5%Service Oakville 789,900 793,500 0.5% 22,900 816,400 3.4%Strategy, Policy & Communications 1,249,900 1,271,400 1.7% 0 1,271,400 1.7%Human Resources 2,425,700 2,470,700 1.9% 0 2,470,700 1.9%Regulatory Services 1,342,900 1,227,700 -8.6% 0 1,227,700 -8.6%Financial Services 5,198,900 5,317,200 2.3% 0 5,317,200 2.3%Environmental Policy 913,100 929,600 1.8% 0 929,600 1.8%Legal Services 1,998,100 2,167,600 8.5% 0 2,167,600 8.5%Information Systems + Solutions 8,335,100 9,038,900 8.4% 0 9,038,900 8.4%Facilities & Construction Management 2,670,800 2,774,400 3.9% 0 2,774,400 3.9%Emergency Services 33,449,800 34,459,500 3.0% 0 34,459,500 3.0%Recreation Services 11,923,000 12,229,900 2.6% 56,200 12,286,100 3.0%Culture 3,383,800 3,511,800 3.8% 0 3,511,800 3.8%Library 8,379,500 8,430,800 0.6% 0 8,430,800 0.6%Parks & Open Space 15,097,100 15,690,300 3.9% 73,800 15,764,100 4.4%Infrastructure Maintenance 19,339,900 20,992,600 8.5% 0 20,992,600 8.5%Infrastructure Planning & Improvements 2,020,400 2,003,500 -0.8% 0 2,003,500 -0.8%Parking 0 0 0.0% 0 0 0.0%Oakville Transit 19,813,100 21,384,000 7.9% 0 21,384,000 7.9%Strategic Business Support 215,600 229,200 6.3% 0 229,200 6.3%Building Services 0 39,900 0.0% 0 39,900 0.0%Planning Services 1,460,000 1,842,400 26.2% 0 1,842,400 26.2%Development Engineering 731,800 -21,700 -103.0% 0 -21,700 -103.0%Economic Development 702,400 728,700 3.7% 0 728,700 3.7%Corporate Revenue & Expenses 18,446,600 19,134,100 3.7% 0 19,134,100 3.7%

Total TAX LEVY BY PROGRAM 165,118,200 172,093,300 4.2% 236,800 172,330,100 4.4% Gross Expenditures by TypeSalaries, Wages, Benefits 137,263,600 141,920,400 3.4% 681,900 142,602,300 3.9%Materials & Supplies 21,519,300 21,610,500 0.4% 119,900 21,730,400 1.0%Purchased Services 31,157,200 33,948,400 9.0% -4,800 33,943,600 8.9%Internal Charges 18,351,300 19,766,600 7.7% 0 19,766,600 7.7%Other Expenditures 15,995,800 17,415,500 8.9% 0 17,415,500 8.9%Minor Capital & Transfer to Reserves 59,284,300 62,216,400 4.9% 0 62,216,400 4.9%Gross Operating Expenditures 283,571,500 296,877,800 4.7% 797,000 297,674,800 5.0% E - 20

Executive Summary


Table 12 – 2016 – 2018 Operating Budget by Program 2016 2017 Base 2017 2017 2016-2017 2018 2018 2018 2017-2018

Requested Forecast Budget Service Forecast Change Forecast Service Forecast ChangeBudget Base Budget Change (%) Adjustments Requested Budget (%) Base Budget Adjustments Requested (%)

GROSS EXPENDITURESPolitical Governance 3,718,100 3,768,900 1.4% 0 3,768,900 1.4% 4,541,300 0 4,541,300 20.5%Administrative Executive Management 1,871,200 1,913,900 2.3% 0 1,913,900 2.3% 1,961,700 0 1,961,700 2.5%Service Oakville 908,300 929,500 2.3% 0 929,500 2.3% 1,067,300 0 1,067,300 14.8%Strategy, Policy & Communications 1,271,400 1,301,100 2.3% 0 1,301,100 2.3% 1,334,300 0 1,334,300 2.6%Human Resources 2,478,300 2,544,300 2.7% 0 2,544,300 2.7% 2,595,900 0 2,595,900 2.0%Regulatory Services 2,658,500 2,702,500 1.7% 0 2,702,500 1.7% 2,751,700 0 2,751,700 1.8%Financial Services 6,517,300 6,678,200 2.5% 0 6,678,200 2.5% 6,859,100 0 6,859,100 2.7%Environmental Policy 954,600 972,100 1.8% 0 972,100 1.8% 991,500 0 991,500 2.0%Legal Services 2,208,100 2,245,100 1.7% 0 2,245,100 1.7% 2,286,800 0 2,286,800 1.9%Information Systems + Solutions 9,346,100 9,863,900 5.5% 0 9,863,900 5.5% 10,095,800 0 10,095,800 2.4%Facilities & Construction Management 4,148,300 4,218,000 1.7% 0 4,218,000 1.7% 4,296,200 0 4,296,200 1.9%Emergency Services 34,789,000 35,653,900 2.5% 0 35,653,900 2.5% 38,297,300 0 38,297,300 7.4%Recreation Services 30,538,900 30,905,300 1.2% 19,500 30,924,800 1.3% 31,894,700 0 31,894,700 3.1%Culture 6,283,000 6,472,000 3.0% 0 6,472,000 3.0% 6,620,600 0 6,620,600 2.3%Library 9,138,600 9,306,400 1.8% 0 9,306,400 1.8% 9,580,600 0 9,580,600 2.9%Parks & Open Space 23,004,300 23,866,200 3.7% 0 23,866,200 3.7% 24,713,800 0 24,713,800 3.6%Infrastructure Maintenance 32,689,700 33,385,100 2.1% 0 33,385,100 2.1% 33,811,800 0 33,811,800 1.3%Infrastructure Planning & Improvements 3,390,200 3,467,600 2.3% 0 3,467,600 2.3% 3,554,200 0 3,554,200 2.5%Parking 4,539,000 4,624,700 1.9% 0 4,624,700 1.9% 4,653,400 0 4,653,400 0.6%Oakville Transit 31,109,600 34,295,200 10.2% 0 34,295,200 10.2% 37,373,200 0 37,373,200 9.0%Strategic Business Support 1,053,500 1,080,200 2.5% 0 1,080,200 2.5% 1,110,200 0 1,110,200 2.8%Building Services 9,579,700 8,628,700 -9.9% 0 8,628,700 -9.9% 8,689,200 0 8,689,200 0.7%Planning Services 6,715,100 6,733,600 0.3% 0 6,733,600 0.3% 6,843,600 0 6,843,600 1.6%Development Engineering 4,681,900 4,765,700 1.8% 0 4,765,700 1.8% 4,859,600 0 4,859,600 2.0%Economic Development 728,700 743,600 2.0% 0 743,600 2.0% 759,800 0 759,800 2.2%Corporate Revenue & Expenses 63,353,400 66,713,700 5.3% 0 66,713,700 5.3% 69,377,300 0 69,377,300 4.0%

Total GROSS EXPENDITURES 297,674,800 307,779,400 3.4% 19,500 307,798,900 3.4% 320,920,900 0 320,920,900 4.3% REVENUES by Type Activity Revenue 60,795,100 61,505,500 1.2% 0 61,505,500 1.2% 63,198,000 0 63,198,000 2.8% Internal Recoveries 23,457,700 23,937,300 2.0% 0 23,937,300 2.0% 24,425,200 0 24,425,200 2.0% Grants 860,700 853,200 -0.9% 0 853,200 -0.9% 853,200 0 853,200 0.0% Other Revenue 40,231,200 41,017,800 2.0% 0 41,017,800 2.0% 41,739,200 0 41,739,200 1.8% Total Revenues 125,344,700 127,313,800 1.6% 0 127,313,800 1.6% 130,215,600 0 130,215,600 2.3%Tax Levy 172,330,100 180,465,600 4.7% 19,500 180,485,100 4.73% 190,705,300 0 190,705,300 5.66%

Assessment Growth -1.00% -1.00%Total Tax Levy Requirement 172,330,100 180,485,100 3.73% 190,705,300 4.66%

E - 21

Executive Summary


Table 13 – 2016 – 2018 Operating Budget – Tax Levy by Program

2016 2017 2016-2017 2018 2017-2018Requested Forecast Change Forecast Change

Budget Requested Budget (%) Requested Budget (%)TAX LEVY

Political Governance 3,705,500 3,756,300 1.4% 3,839,400 2.2%Administrative Executive Management 1,825,700 1,863,400 2.1% 1,911,200 2.6%Service Oakville 816,400 837,600 2.6% 975,400 16.5%Strategy, Policy & Communications 1,271,400 1,301,100 2.3% 1,334,300 2.6%Human Resources 2,470,700 2,536,700 2.7% 2,588,300 2.0%Regulatory Services 1,227,700 1,271,700 3.6% 1,320,900 3.9%Financial Services 5,317,200 5,463,500 2.8% 5,633,400 3.1%Environmental Policy 929,600 947,100 1.9% 966,500 2.0%Legal Services 2,167,600 2,204,600 1.7% 2,246,300 1.9%Information Systems + Solutions 9,038,900 9,556,700 5.7% 9,788,600 2.4%Facilities & Construction Management 2,774,400 2,830,500 2.0% 2,894,800 2.3%Emergency Services 34,459,500 35,324,400 2.5% 37,967,800 7.5%Recreation Services 12,286,100 12,732,300 3.6% 13,542,900 6.4%Culture 3,511,800 3,604,900 2.7% 3,702,800 2.7%Library 8,430,800 8,593,100 1.9% 8,861,700 3.1%Parks & Open Space 15,764,100 16,489,200 4.6% 17,222,200 4.4%Infrastructure Maintenance 20,992,600 21,289,700 1.4% 21,334,800 0.2%Infrastructure Planning & Improvements 2,003,500 2,053,700 2.5% 2,112,500 2.9%Parking 0 0 0.0% 0 0.0%Oakville Transit 21,384,000 23,114,100 8.1% 25,179,600 8.9%Strategic Business Support 229,200 255,900 11.6% 285,900 11.7%Building Services 39,900 40,700 2.0% 35,500 -12.8%Planning Services 1,842,400 1,851,200 0.5% 1,953,500 5.5%Development Engineering -21,700 -23,500 8.3% -15,100 -35.7%Economic Development 728,700 743,600 2.0% 759,800 2.2%Corporate Revenue & Expenses 19,134,100 21,846,600 14.2% 24,262,300 11.1%

Total TAX LEVY 172,330,100 180,485,100 4.73% 190,705,300 5.66% GROSS EXPENDITURES by Type Personnel Services & Benefits 142,602,300 147,878,100 3.7% 155,248,400 5.0% Materials & Supplies 21,730,400 22,183,800 2.1% 23,144,500 4.3% Purchased Services 33,943,600 34,516,500 1.7% 35,765,200 3.6% Internal Charges 19,766,600 20,173,000 2.1% 20,593,300 2.1% Other Expenditures 17,415,500 17,778,500 2.1% 16,414,200 -7.7% Minor Capital & Transfer to Reserves 62,216,400 65,269,000 4.9% 69,755,300 6.9% Total Expenditures 297,674,800 307,798,900 3.4% 320,920,900 4.3% E - 22

Executive Summary


Table 14 – Town Revenue Operating Budget Summary

2016 Base Requested 2016 % Forecast Forecast2015 Base Budget 2016 Requested Change 2017 2018

Budget Budget Change (%) Adjustments Budget 2016/2015 Budget Budget SOURCES OF REVENUECorporate Revenue

Taxation 165,118,200 172,093,300 4.2% 236,800 172,330,100 4.4% 180,485,100 190,705,300Supplementary Taxes 1,250,000 1,250,000 0.0% 0 1,250,000 0.0% 1,250,000 1,250,000Local Improvement Collections 2,100 2,100 0.0% 0 2,100 0.0% 0 0Payments in Lieu of Taxes 3,741,000 4,044,000 8.1% 0 4,044,000 8.1% 4,044,000 4,044,000General Provincial Grants 0 0 0.0% 0 0 0.0% 0 0Income from Investments 6,154,300 4,986,400 -19.0% 0 4,986,400 -19.0% 4,986,400 4,986,400POA Halton Court Fines 794,000 794,000 0.0% 0 794,000 0.0% 794,000 794,000Tax Penalty & Interest 3,000,000 3,000,000 0.0% 0 3,000,000 0.0% 3,000,000 3,000,000Oakville Hydro Revenue 10,198,200 10,826,500 6.2% 0 10,826,500 6.2% 11,826,500 13,326,500Subdivision Agreement Fees 0 0 0.0% 0 0 0.0% 0 0Other Service Fees 0 0 0.0% 0 0 0.0% 0 0Fund Balance and Transfer 9,032,900 10,696,200 18.4% 0 10,696,200 18.4% 10,850,900 9,598,800

Total Corporate Revenue 199,290,700 207,692,500 4.2% 236,800 207,929,300 4.3% 217,236,900 227,705,000

Departmental Revenue 62,599,200 66,115,800 5.6% 172,000 66,287,800 5.9% 66,624,700 68,790,700

Internal Recoveries 21,681,600 23,069,500 6.4% 388,200 23,457,700 8.2% 23,937,300 24,425,200

TOTAL REVENUE 283,571,500 296,877,800 4.7% 797,000 297,674,800 5.0% 307,798,900 320,920,900

E - 23

Executive Summary


2016 TOTAL EXPENDITURES

The table below sets out the 2016 expenditure needs for all programs for both operating and capital. Total combined gross spending in 2016 is projected at $371.1 million.

The following chart shows the major areas of spending for the combined operating and capital programs.

Table 15 – 2015 Capital & Operating Expenditures

E - 24

Executive Summary


Table 16 – Town Summary Budgeted Expenditure and Revenue by Program (Operating & Capital)

2015 2015 2016 2016 2016 2016Gross 2015 Net Gross 2016 Net Capital Capital +

Expenditures Revenue Expenditures Expenditure Revenue Expenditures Expenditures ExpendituresPolitical Governance 3,430,600 (16,900) 3,413,700 3,718,100 (12,600) 3,705,500 0 3,718,100Administrative Executive Management 1,860,600 (43,500) 1,817,100 1,871,200 (45,500) 1,825,700 5,960,000 7,831,200Service Oakville 801,900 (12,000) 789,900 908,300 (91,900) 816,400 686,000 1,594,300Strategy, Policy & Communications 1,249,900 0 1,249,900 1,271,400 0 1,271,400 578,000 1,849,400Human Resources 2,433,300 (7,600) 2,425,700 2,478,300 (7,600) 2,470,700 0 2,478,300Regulatory Services 2,737,600 (1,394,700) 1,342,900 2,658,500 (1,430,800) 1,227,700 0 2,658,500Financial Services 6,343,400 (1,144,500) 5,198,900 6,517,300 (1,200,100) 5,317,200 453,000 6,970,300Environmental Policy 973,100 (60,000) 913,100 954,600 (25,000) 929,600 200,000 1,154,600Legal Services 2,008,600 (562,000) 1,446,600 2,208,100 (40,500) 2,167,600 0 2,208,100Information Systems + Solutions 8,462,300 (127,200) 8,335,100 9,346,100 (307,200) 9,038,900 2,281,000 11,627,100Facilities & Construction Management 4,058,600 (836,300) 3,222,300 4,148,300 (1,373,900) 2,774,400 4,181,700 8,330,000Emergency Services 33,799,300 (349,500) 33,449,800 34,789,000 (329,500) 34,459,500 5,664,900 40,453,900Recreation Services 29,429,000 (17,506,000) 11,923,000 30,538,900 (18,252,800) 12,286,100 1,810,900 32,349,800Culture 6,072,000 (2,688,200) 3,383,800 6,283,000 (2,771,200) 3,511,800 240,000 6,523,000Library 9,074,400 (694,900) 8,379,500 9,138,600 (707,800) 8,430,800 1,561,500 10,700,100Parks & Open Space 21,858,800 (6,761,700) 15,097,100 23,004,300 (7,240,200) 15,764,100 20,610,700 43,615,000Infrastructure Maintenance 30,506,600 (11,166,700) 19,339,900 32,689,700 (11,697,100) 20,992,600 9,753,600 42,443,300Infrastructure Planning & Improvements 3,352,000 (1,331,600) 2,020,400 3,390,200 (1,386,700) 2,003,500 33,851,700 37,241,900Parking 4,175,300 (4,175,300) 0 4,539,000 (4,539,000) 0 31,000 4,570,000Oakville Transit 28,489,200 (8,676,100) 19,813,100 31,109,600 (9,725,600) 21,384,000 10,828,000 41,937,600Strategic Business Support 1,035,600 (820,000) 215,600 1,053,500 (824,300) 229,200 215,000 1,268,500Building Services 10,236,700 (10,236,700) 0 9,579,700 (9,539,800) 39,900 0 9,579,700Planning Services 6,850,100 (5,390,100) 1,460,000 6,715,100 (4,872,700) 1,842,400 500,000 7,215,100Development Engineering 4,470,000 (3,738,200) 731,800 4,681,900 (4,703,600) (21,700) 40,000 4,721,900Economic Development 702,400 0 702,400 728,700 0 728,700 0 728,700Corporate Revenue & Expenses 59,160,200 (6,541,100) 52,619,100 63,353,400 (8,620,100) 54,733,300 0 63,353,400

283,571,500 (84,280,800) 199,290,700 297,674,800 (89,745,500) 207,929,300 99,447,000 397,121,800Less Operating and Capital Overlap (23,819,400) (25,995,800) (25,995,800)

259,752,100 (84,280,800) 199,290,700 271,679,000 (89,745,500) 207,929,300 99,447,000 371,126,000Town Revenue 175,471,300 181,933,500

E - 25

Executive Summary


Table 17 – Capital Budget and Financing Summary By Program

Total Development Gas Tax Program Total Tota l Capita l Long Term Total TotalProject Charges Funding Speci fic External Town Levy Financing Corporate ProposedBudget Reserve Financing Reserves Financing Financing

CORPORATE INITIATIVES

Corporate Ini tiatives 7,677,000 271,800 105,000 376,800 6,101,000 1,199,200 7,300,200 7,677,000Total CORPORATE INITIATIVES 7,677,000 271,800 105,000 376,800 6,101,000 1,199,200 7,300,200 7,677,000

CORPORATE SERVICES

Faci l ties and Construction Management 4,181,700 2,337,200 2,337,200 861,000 983,500 1,844,500 4,181,700Information Systems & Solutions 2,281,000 315,000 1,966,000 2,281,000 2,281,000

Total CORPORATE SERVICES 6,462,700 2,337,200 2,337,200 1,176,000 2,949,500 4,125,500 6,462,700COMMUNITY SERVICES

Parks and Open Space 20,610,700 3,318,300 6,975,500 10,293,800 1,729,200 8,587,700 10,316,900 20,610,700Emergency Services 5,664,900 846,400 196,000 1,042,400 4,439,000 183,500 4,622,500 5,664,900Recreation and Cul ture Department 2,033,900 1,192,900 1,192,900 826,000 15,000 841,000 2,033,900Oakvi l le Publ ic Library 1,561,500 145,500 145,500 560,000 856,000 1,416,000 1,561,500Oakvi l le Gal leries 17,000 0 17,000 17,000 17,000Infrastructure Maintenance 9,753,600 995,000 259,200 1,254,200 -1,676,400 823,000 6,000,000 8,499,400 9,753,600Oakvi l le Trans i t 10,828,000 347,400 3,495,900 25,000 3,868,300 5,797,000 1,162,700 6,959,700 10,828,000

Total COMMUNITY SERVICES 50,469,600 5,507,100 3,495,900 8,794,100 17,797,100 15,027,600 11,644,900 6,000,000 32,672,500 50,469,600COMMUNITY DEVELOPMENT

Infrastructure Planning 33,882,700 15,390,400 3,879,600 371,500 19,641,500 4,193,000 10,048,200 14,241,200 33,882,700Environmenta l Pol icy 200,000 100,000 100,000 100,000 100,000 200,000Planning Services 500,000 360,000 360,000 115,000 25,000 140,000 500,000Dev Eng/Economic Dev 40,000 36,000 36,000 4,000 4,000 40,000Strategic Bus iness Support 215,000 90,000 125,000 215,000 215,000

Total COMMUNITY DEVELOPMENT 34,837,700 15,786,400 3,979,600 371,500 20,137,500 4,498,000 10,202,200 14,700,200 34,837,700 TOTAL 99,447,000 21,565,300 7,475,500 11,607,800 40,648,600 26,802,600 25,995,800 6,000,000 58,798,400 99,447,000

E - 26

Executive Summary


2016 CAPITAL BUDGET

The 2016 capital budget plan continues to implement objectives set out in various master plans and strategic goals while maintaining fiscal sustainability and ensuring the financial policies are adhered to. The 2016 capital budget has been developed with the following financing policies and assumptions:

• Debt re-payment levels including the hospital

commitment remain within the council approved policy limits;

• Outstanding debt to reserve levels do not exceed the 1:1 ratio required to maintain AAA credit rating;

• The 1% Capital levy increase is maintained; • Timing of Growth projects aligns with anticipated

residential and non-residential development; • Capital reserves are maintained at sufficient levels to

minimize risk, support future initiatives and provide for unknown contingencies;

• Equipment reserves are maintained at sufficient levels to support on-going life cycle replacements;

• Building replacement reserve contributions are maintained and as new facilities are built contributions are increased and phased in over five years;

The total 2016 recommended gross capital budget is $99.4 million, which includes recommendations from the October 26th, 2015 Budget Committee to adjust the following projects:

• Defer the Bronte Branch Library project of $435,000 from 2016 to 2017

• Add the Lorne Scots Regimental Memorial project has of $50,000 to the 2016 budget.

As indicated in the Table 18, 42% of the capital budget has been allocated to Infrastructure Renewal projects with $42.4 million. The Growth and Strategic Priorities portions of the budget each represent 26% of the total 2016 budget with $26.5 million each.

Table 18 – Capital Forecast by Category ($Millions)

Infrastructure Renewal 42.4$

Growth 26.5

Strategic Priorities 26.5

Community Enhancements 2.5

Enterprise Initiatives 1.6

Total 99.4$

Classification 2016

E - 27

Executive Summary


As shown above, the total value of town capital projects in 2016 is $99.4 Million. The following table provides highlights of the projects included in the 2016 capital budget. These projects represent 43.8% of the total capital budget.

Table 19 – Top 10 Largest Capital Projects

Program Department - Project2016

Budget

Infrastructure Planning 53331604 Road Resurfacing and Preservation Program 7.8$

Infrastructure Planning 53310601 Cornwall Rd-Chartwell to Morrison 7.3$

Infrastructure Maintenanc 51631601 LED Streetlighting 6.0$

Corporate Initiatives 42101401 OTM Hospital Demolition 4.2$

Oakville Transit 54411606 Replacement Buses 3.8$

Parks and Open Space 52271605 EAB Management Program 3.7$

Emergency Services 43301602 Fire Station #3 3.6$

Infrastructure Planning 53321506 Bridge Road - Warminster to Fourth Line 3.0$

Parks and Open Space 52241201 16 Mile Creek West Shore Landscape Rehabilitati 2.1$

Infrastructure Planning 53311410 Speers Rd - GO Station W of 3rd Line to 4th Line 2.0$

Total 43.5$

Top 10 Largest Capital Projects ($ Millions)2016 Capital Budget

2016 Capital Budget by Program

The following chart illustrates the 2016 capital budget by program. As shown in the graph, the Infrastructure Planning & Improvements program has the largest capital budget totaling $33.9 million or 34% of the total capital budget. Table 20 – 2016 Capital Budget by Program - $99.4M

Of the $33.9 million, $17.9 million is for road infrastructure improvements to service growth needs of the town and $14.8 million is for rehabilitating existing infrastructure. E - 28

Executive Summary


It should also be noted that the capital program includes a $250,000 increase in funding from operating to the Road Resurfacing & Preservation Program project recommended as part of the 2010 budget process. Highlights include $7.8 million for the Road Resurfacing & Preservation, $7.3 million for Cornwall Road widening from Chartwell to Morrison, $3.0 million for the reconstruction and urbanization of Bridge Road from Warminster Drive to Fourth Line and $2.0 million for continued design work and land acquisitions for the reconstruction and widening of Speers Road form the GO Station west of Third Line to Fourth Line. The second largest capital program is Parks and Open Space totaling $20.6 million or 21% of the total capital budget. Included in the Parks and Open Space program is $3.7 million to continue work on Emerald Ash Borer (EAB) management in street trees and woodlots. As well, $2.1 million to begin landscaping rehabilitation works in the parks along the 16 Mile Creek West Shore and $1.7 million to begin Waterfront Trail Improvements at Tannery Park. Growth initiatives for the Parks program include $1.6 million to begin construction of a neighbourhood park in North Oakville as well as $0.5 million for continued development of trail systems throughout the Natural Heritage System (NHS) areas in North Oakville. Oakville Transit’s capital budget totals $10.8 million or 11% of which includes $4.3 million to replace its ageing bus and care-A-van fleet at the end of their useful life, and $1.4 million to refurbish older buses in order to extend their life expectancy. In addition, $2.3 million has been included to

purchase additional fleet to expand service as recommended in the 5 Year Transit Service Review to support growth across the town. Finally, $0.6 million has been included to continue initiatives related to the Transit Information System. The Infrastructure Maintenance program accounts for $9.8 million or 10% of the total capital budget. Highlights include $6 million for Phase 1 of the LED Streetlight conversion program, $1.7 million for the replacement of roads and works equipment and $1 million for new equipment to service growth areas.

Corporate Initiatives include $7.7 million in funding to continue efforts related to various strategic goals such as web based services, open data, and the demolition of the Oakville Trafalgar Hospital site and the Brantwood School site.

Between the Recreation and Culture program and Facilities and Construction Management program, a total of $6.2 million or 6.2% has been budgeted to refurbish and replace building components at town facilities. Significant works planned include $0.6 million for change room renovations at White Oaks Pool, as well as $0.2 million for interior renovations and arena repairs to Joshua’s Creek facilities and $0.2 million to start the upgrade to the change room facilities at Glen Abbey and the purchase of a new Marquee sign.

E - 29

Executive Summary


2016 Capital Financing Overview

Financing of the 2016 capital budget is provided by several different funding sources as illustrated in table 21 below. The Capital Levy provides the largest portion of the financing for the 2016 budget with $26 million or 26%. The Capital Levy is a primary source of funding for infrastructure renewal projects and allows capital work to be completed without the issuance of debt. The second largest source of funding is Development Charges with $21.6 million representing 22%. Other funding sources include Equipment and Building Maintenance reserves, Gas Tax reserve funds and Program Specific reserve funds.

Table 21 – 2016 Capital Budget Financing - $99.4M

Operating Impacts from Capital Projects

Operating impacts from capital projects total $2.1 million for 2016, and include a 5.4 new FTE’s offset by a reduction of 2.5 FTE in Library for a net total of 2.9 FTEs. Information Systems + Solutions has the largest operating impact at $0.6 million, primarily for various software licensing and staffing to support new and on-going system implementations and enhancements. This includes PCI Certification Project, Corporate Document Management and Open Data.

The $0.5 million for Oakville Transit is for additional transfers to reserves for the Transit Facility and additional fleet due to expansion bus and Care-A-Van bus purchases. These transfers are required for future replacement.

The $0.4 million in Parks & Open Spaces operating impacts are mainly for the ongoing maintenance and operating requirements of the new North Oakville Neighbourhood Park 2, the Uptown Core – Memorial Park, the White Oaks Secondary School Field and washroom rehabilitation, Mattamy Pendent Park and CLC Lands (Dorval) Parkette. This includes additional seasonal and part-time hours for park maintenance, hydro, contracted services and various materials and supplies.

E - 30

Executive Summary


Infrastructure Maintenance has $0.3 million in operating impacts mainly due to additional fuel and transfer to reserves for growth vehicles. These impacts were offset slightly offset from hydro energy savings to reflect beginning of the LED street light conversion program.

Recreation Services has $0.25 million in operating impacts for the annualized impacts for QEP and the Youth Centre and staffing to support seniors services at QEP that has been deferred until programming levels met the need for a full-time coordinator.

Emergency Services has operating impacts of $0.1 million for a transfer to reserves for new pumper purchased in 2015 for Station #9.

Finally, Library has a reduction of $0.08 million and (2.5) FTE in operating impacts as a result of anticipated efficiencies from the RFID System Installation, and the Print Management System.

Operating Impacts by Program FTE 2016Corporate Services

Information Systems & Solutions 3.0 608,500 Total Corporate Services 3.0 608,500

Community ServicesParks and Open Space 1.4 369,300 Emergency Services 140,700 Recreation and Culture 1.0 250,500 Oakville Public Library (2.5) (80,400) Infrastructure Maintenance 311,200 Oakville Transit 471,100 Total Community Services (0.1) 1,462,400

Community DevelopmentParking (2,800) Total Community Development - (2,800)

Total Operating Impacts by Program 2.9 2,068,100

E - 31

Executive Summary


Regulation 284/09 The Town of Oakville is required under Ontario Regulation 284/09 to report on amortization, post-employment benefits and solid waste landfill closures and post-closure expenses that are excluded from the annual budget. The town does not have a landfill within our level of authority therefore only includes the impact of amortization and post-employment liabilities. The 2016 proposed budget excludes amortization expenses which are currently estimated at $43.0 million. Amortization expenses are not budgeted as municipalities use traditional transfers to reserve and reserve funds and annual capital levy funding to repair, maintain and replace existing assets. Funds are held in reserve and reserve funds and balances are reviewed annually in order to ensure that funding levels are adequate for future asset replacements. The 2016 proposed budget includes $49.2 million in budgeted transfers directly to capital and reserves or reserve funds for the refurbishment and replacement of the town’s capital assets. Based on analysis completed during the preparation of the 2016-2025 capital forecast and financing strategy, annual budgeted transfers provide adequate funding for the major repairs and replacement of existing tangible capital assets over the 10 year period. As outlined in the 2016-2025 capital forecast, infrastructure renewal needs have been identified based on life cycle information and prudent repair and maintenance standards. Currently, all identified infrastructure renewal needs in the 10 year period have been funded including the $42.3 million

included in 2016. It should also be noted that as part of the town’s current budgeting practice, it is policy that as new assets are constructed or purchased for growth, additional transfers to reserve are built into the operating budget in the year the asset comes into service to ensure funding exists for the replacement of those assets. Included in the $49.2 million noted above is $1.0 million in increased transfers to reserves and reserve funds as a result of new capital assets. The town has been required under PSAB to report post-employment liabilities within the financial statements for many years. Post-employment liabilities include both Workers Safety & Insurance Board (WSIB) and post-employment employee benefit liabilities. Actuarial reviews were conducted during 2013 which provided an updated estimate of the liability for financial reporting. The town’s current estimated liability reported in its financial statements is $25.5 million ($22.9 million for post-employment benefits and $2.6 million for WSIB). The town has budgeted to contribute a total of $594,200 ($317,600 for employee benefits and $276,600 for WSIB) to its Post-Employment Reserve fund which has a forecasted balance of $15.8 million at the end of 2015. Thus, the town has an estimated unfunded post-employment liability of $9.7 million. There is no requirement to have full funding in place for the post-employment benefits but full funding is required for the WSIB, which the town has. The current year annual cost of employee benefit post-employment benefits is expensed as paid throughout the year and is budgeted at $725,800.

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Total Operating Expenditures - Oakville - town hall/2016bob-ExecSum.… · 2016 Operating Budget...

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