Special Council Meeting - Budget

0:16Good morning everybody

0:19It is Wednesday, October the 30th and we are here for a special council meeting or

0:26Our budget presentation. Thank you very much for for joining and

0:33I might have I'm pretty sure I have official regrets from counselor Klossin

0:39Okay

0:41So we'll see if anything else comes with that, but I just want to make sure that's noted for the record

0:46And with that, let's stand if you're able, please as we recognize our national anthem

0:51Great. Thanks everyone. Just a moment of silent reflection as we continue. Great. Thank you

2:32And for our indigenous territorial acknowledgement as we gather let us take time to reflect on the privilege to live and work here in Guelph

2:40The city built over rich indigenous histories

2:43We're guests here and we should reflect upon the responsibility to care for this land the people who live here today and the generations to come

2:50If our actions today can move us towards reconciliation, we should take pause

2:55We make those decisions with intention and gratitude

2:57This place we called Guelph is served as traditional lands and a place of refuge for many peoples over time

3:03But more specifically the Anwarak and the Honoshoni

3:06This land is held as the treaty lands

3:10Excuse me and territory with the Mississaugas of the credit first nation

3:14And Guelph lives directly adjacent to the Haldemann track and is part of a long established traditional hunting grounds for the six

3:20Nations of the Grand River many first nations Inuit and Métis peoples who have come from across Turtle Island called Guelph home today

3:28Thank you. Is there any disclosure of pecuniary interest or any general nature thereof?

3:34Seeing and hearing none

3:37We are right in to our presentations. We have several staff that have

3:44prepared to walk through this portion and

3:47Lucky for our new our new CAO Tara Baker. You are first up on the list. We will turn it over

3:55To you. Okay. Thank you and good morning everyone and and yes, it's really happy to kick off today's agenda

4:13In a different chair than I've been in with you for the this process for the last the last eight years so

4:22So today

4:23Staff will present the draft 2025 budget update the first confirmation year in our four-year budget

4:29Covering 2024 to 27 the multi-year budget is not a set it and forget it approach

4:35It's a tool that allows us to set a clear financial roadmap to

4:40Progress towards the vision outlined in our strategic plan

4:43It makes us more resilient to the various factors outside of our control

4:48That impact our city budget and it allows us to better manage financial risk in the long term

4:53The multi-year budget was built on and informed by the collective priorities

4:58Articulated by city staff council and the broader Guelph community

5:03These priorities are reflected in our strategic plan

5:06Guelph's community plan the results of our community satisfaction survey and the feedback we receive through ongoing engagement with residents

5:15businesses and community partners on various city projects and initiatives

5:19Our shared goal is to balance servicing the community's current needs which are complex and evolving

5:26With the need to plan and prepare for future growth

5:29This is the driving force behind our multi-year budget process

5:33In other words the multi-year budget doesn't limit our ability to adapt to change rather it creates a more accountable and transparent environment

5:40To handle the change each year our multi-year budget process continues to improve and mature

5:46With that said the 2025 budget update represents a significant change from what was previously presented through the multi-year budget

5:56There are three key pieces of direction from the mayor and council that underpin the budget update

6:01First in february a mayoral direction was issued instructing staff to revise the budget to ensure a property tax impact

6:07Of no more than 4% distributed proportionately between the city the local boards and our shared service agencies

6:14Secondly the update focused on prioritizing the city's needs to balance strategic priorities

6:19With affordability pressures and then finally as part of the multi-year budget process

6:24Council approved direction to staff to bring back a fully funded 10-year capital plan of forecast through the 25 budget update

6:33This direction informed the preparation of the budget before you today

6:40Guelph's budget includes all city services plus the specialized service delivery

6:45services delivered by seven local boards and agencies

6:48As listed before you knew this year budgets for city services and the agencies will be considered separately

6:55Today and throughout the month of november. We will be focused just on the city service budget

7:01This portion is presented under the strong mayor budget process and represents approximately two-thirds of guelph's total budget

7:09The local boards and shared services budget will be considered separately on january 22nd under the previous council approval process

7:17historically

7:18And represents approximately one-third of guelph's total budget

7:22The final budget will be reflected on our website in late january following that process

7:32During the development of guelph's 24 to 27 multi-year budget

7:35We focused on investments that support our core work and meet community needs

7:39Finding ways to mitigate tax impacts while ensuring we continue to deliver services as expected was the top priority

7:46These overriding themes continue to remain relevant for the budget update

7:50A primary focus of this budget is affordability for the community

7:54The budget update process focused on the needs of balance moving strategic priorities forward

7:59Uh in this fiscal environment

8:01This process included prioritizing both new investment proposed in the in the adopted budget as well as

8:08existing services in the base budget using the same criteria

8:13Housing was also prioritized by advancing investments that enable and service growth. We know we need more housing in guelph

8:20We have committed to 18 000 homes through the housing pledge by 2031

8:24And as the city were primarily responsible for facilitating housing supply

8:29Mainly in the private market by regulating land use and building standards through policies and incentives to make development possible

8:37The budget update maintains investments for enabling housing

8:40We're actively working to enable growth in our community at an accelerated rate

8:45This includes infrastructure like water pipes sewers treatment plants stormwater catch basins and roads

8:51These are the core city services that need to be in place before any homes can be built

8:57After homes and businesses are built and new new people and jobs arrive

9:02The city delivers many core services

9:04To those people and businesses that are relied on every day

9:08services like transit waste collection road maintenance bylaw enforcement and so much more

9:14These are the services that help make guelph a great place to live work and play and need to be maintained through responsible and sustainable funding

9:21And so with that i'm going to invite general manager jody sales to present the next section

9:33Thank you, ceo baker as everyone here is aware the city's resources are not unlimited

9:38The past few years have seen an unstable

9:40Inflationary environment and we've heard from residents through our satisfaction survey that the costs of living and affordability are everyday challenges for many in our community

9:48Inflation has impacted the city's costs and capital inflation continues to be higher than target

9:54At the same time the social challenges we are experiencing in a post pandemic environment

9:59Particularly an increase in the number of people experiencing homelessness and struggling with substance use have increased

10:05And there is a fundamental imbalance in the supply and demand for housing

10:09These issues are connected and they are challenges that go well beyond the city's borders

10:14Guelph cannot solve these issues alone

10:16Partnership and collaboration with other levels of government are local boards and shared service agencies the development community

10:22And others is needed and is a top priority for the city's leadership

10:26As this budget was updated tough decisions were required

10:29This budget continues to advance the goals of the strategic plan and as you will and you will hear more about that from deputy ceo

10:36clackbush in a moment

10:37But it is important to recognize that while we have prioritized investments in housing

10:41There are areas of the strategic plan where we have delayed and reduced investment of resources

10:47This means that progress on some areas of the strategic plan will take longer to achieve

10:52At the same time the goal is to ensure that the areas of highest priority continue to move forward

10:57And of course we will continue to provide council with an annual update on our progress related to the strategic plan in mid

11:042025 full details of investments in the 2025 budget update are available on our website

11:12In march the city's leadership team met and provided input into the development of a prioritization framework for the 2025 budget update

11:20This framework was used to assess 2024 paused investments new 2025 investments and proposals for disinvestment as we worked to achieve the budget

11:29target

11:30This framework was important for us to enable us to make consistent

11:34Transparent and defendable prioritization decisions

11:37This framework focuses on five factors the creation of new housing units

11:42prioritizing the services required to create more housing in our community

11:46meeting legislative and regulatory

11:48requirements

11:50prioritizing investments the legislative and regulatory environments include requirements including maintaining standards and emergency service response

11:58health and safety and minimum wrote winter road maintenance standards

12:02risk

12:03prioritizing investments where disinvestment or deferment would carry a high or very high level of financial regulatory or public risk

12:11impact to the public

12:13prioritizing where possible

12:15investments where disinvestment is deemed to have a significant impact to residents based on existing service levels and expectations

12:22And finally the future guelph strategic plan

12:25prioritizing items that meet the above criteria and

12:28Additionally demonstrate the ability to advance the goals of the future guelph strategic plan in a measurable way

12:36Achieving the city's proportionate share of the target was complex with many considerations along the way

12:41as ceo baker noted the 2025 budget confirmation

12:45Process began in february with the release of the mayoral direction

12:48As always staff have taken a collaborative approach working with leadership across the organization to meet the direction provided by mayor and council

12:56This year we assembled a new budget focused team of senior leaders that met weekly from march through september

13:01To consider options to make decisions that became recommendations to the mayor for inclusion in the draft budget

13:08An early decision was to pause and review all 2024 investments that had impacts in 2025

13:14Against our prioritization framework. This included 2024 capital projects that had operating impacts in 2025

13:22And new 2024 staff positions which were phased in over two budget years

13:27Further the increase for tax supported capital funding was reduced

13:30An assumption was made that this level of increase in capital funding would also be fixed for the duration of the capital budget and forecast

13:38Having these assumptions in place set a critical foundation of funding that streamlined the capital budget adjustments

13:44And ensures that we will not need to revisit it in future future multi budget multi-year budget cycles

13:51The operating budget underwent various stages of review and prioritization

13:55This began with a review of historical trends and expenses and revenues compared with the budget and identified adjustments accordingly

14:02Using the prioritization framework paused capital and operating investments were considered

14:07Resulting in decisions to unpause or defer each item

14:10Finally staff were asked to submit service reduction proposals for each service area

14:15Those proposals were considered by the senior leadership team and prioritized through the framework to balance the remaining savings required

14:22To meet the city's share of the budget target

14:25From a capital perspective every capital project in the 10-year budget and forecast was evaluated against the prioritization framework

14:32This was a significant undertaking that included cross departmental collaboration and validation of priority rankings

14:41To get the capital plan that is presented to you today

14:45capital prioritization rankings

14:47Were validated by the city's capital steering committee and adjusted according to the feedback that was received

14:53The reserve forecast and debt strategy were updated in this final review stage

14:58Through this process we have achieved a lot. We've met the affordability target outlined in the mayoral direction on the budget

15:05We've presented a fully funded 10-year capital budget and forecast

15:08We've fulfilled the city's commitment to the housing pledge. We've maintained our high priority assets

15:14We've leveraged existing grant opportunities and left room for future grants to help mitigate tax increases

15:20We've made significant investments in revitalizing the downtown area and we've continued our progress towards our environmental goals

15:27Through ongoing investments in transit electrification and active transportation

15:32I would now like to welcome deputy c.a.o. Blackbush

15:40Thank you miss sales and good morning everyone

15:43Over the following four slides i'm going to provide you with some highlights for each service area about what has changed within the budget

15:53Some highlights of work within the c.a.o.'s office

15:56Advocacy remains an important priority as we navigate continued legislative change and complex challenges related to community safety

16:03health and well-being and housing for our most vulnerable residents

16:08In early 2025 council will see an updated advocacy plan aligned to the well future ready strategic plan that further advances this work

16:18To continue to move capital work forward and balance affordability

16:21The city is leveraging alternative funding mechanisms such as inter reserve fund borrowing debt and grants

16:28We also remain committed to continuous improvement innovation and progress reporting

16:34This all supports our culture of data driven decision making at the city

16:39This budget also continues to invest in policy work that supports initiatives across the housing continuum

16:47Under corporate services in support of the overall people and culture plan

16:52We have committed to identifying opportunities that were highlighted in the employee engagement pulse survey

16:58The implementation of the service simplified strategy continues in this budget

17:02As we track the results of implementation to date

17:05We have taken the opportunity to adjust our focus to ensure it will meet the needs of a customer focused

17:11performance driven and digitally enabled workplace culture

17:15This includes aligning the timing of onboarding new services with the process review and technology improvements that need to go along with it

17:23Technology improvements have been prioritized ensure those that move housing related projects forward and form the foundation for future improvements

17:32Such as the centralized data management system

17:35This will support the data integration and connection for all future system improvements. So it needs to come first

17:44Within infrastructure development and environment the capital budget is going to be discussed in more detail later

17:50But as an overall approach we prioritized infrastructure renewal as part of the review of the 10-year capital budget

17:56Assets associated with higher risks and those directly associated with new housing development were maintained in the budget

18:04This will support continued delivery of high priority services

18:07While lower priority services could experience interruptions resulting from asset condition

18:14Through maintaining staffing levels and process improvement initiatives, we are accelerating development application review times

18:21In respect of our environmental goals, we continue to invest in fleet and transit electrification to support the continued reduction of gulf's carbon footprint

18:30And downtown renewal remains the priority in this budget

18:34This includes reconstruction work on downtown streets as part of the 10-year capital budget

18:39As well as the baker district construction project in the new main branch library

18:45And under the area of public services

18:48Progress continues with the south end community center, which is on schedule for completion in 2026

18:55Two pilot projects are included in this budget for transit

18:59Youth who have a registered on your way card will be able to ride transit free after 5 p.m

19:04On weekdays and all day on weekends and holidays

19:08This provides an opportunity to gain long-term transit users

19:12Additionally seniors who have a registered on your way card can ride transit free all day on thursdays and provides a cost free option to help seniors get around

19:22Staff will report back to council about program uptake and provide a recommendation on whether these two programs should be considered for permanent

19:30Implementation ahead of the 2026 budget confirmation process

19:34The 10-year capital plan continues to invest in paramedic services to meet response time targets

19:41And we also continue to look for areas of improvement across our business lines

19:45Including targeted improvements in culture and recreation

19:48Fire operations and parks which are all included in this budget

19:52Now i'd like to welcome acting city treasurer odwire to share more about the operating budget update

20:03Thank you deputy c a o clack bush and good morning mayor and council

20:14Can you tell me

20:16Thank you

20:18Several adjustments to the 2025 operating budget have been made and are being presented to you today

20:25We've summarized these adjustments in the categories that you can see on this slide

20:29Base budget or inflationary adjustments operating impacts from capital

20:34growth

20:35service enhancements

20:36service reductions and capital funding

20:39We will provide an overview of what is included in each category on the next few slides

20:49Something has gone wrong

21:14sure

21:16Yes

21:23Thank you very much. I'll flip to the next one. There we go. Okay. We're back on track

21:28The budget update includes base and inflationary changes from the previously adopted budget with a few key highlights

21:34Continuing the approach taken through the multi-year budget process staff reviewed historical trends for expenses and revenues compared with the budget

21:43Made adjustments accordingly

21:45This included increased revenues in parks culture and recreation

21:49Guelph transit solid waste land ambulance parking finds and the city clerk's office to reflect current sales volumes

21:57increased short-term interest reduced printing and consulting and software maintenance costs

22:02Inflationary expense increases have been included for utilities facilities and equipment maintenance medical supplies and software licensing fees

22:12Other base budget adjustments included the 50 phase in of costs of positions added in 2024

22:21operating impacts from capital including

22:24Include operating investment for guelph transit to provide a new express bus service from guelph central station

22:30to the guelph conestoga college campus

22:33operating investment to service paramedic shifts added in 2024

22:38investment in software licensing and replacement

22:41An incremental cost to maintain road right of way due to growth

22:45The phase in strategy for the new main library and south end community center have both been updated as a result of the baker library grant

22:53And now align further budget increases to 2026 when both facilities are expected to open

22:59Several other adjustments were made also made through the timing of operating impacts as capital budgets were prior capital projects were

23:07prioritized and moved throughout the forecast

23:12Growth investments in the budget update reflect the 50 phase in of growth related operating budget investments from 2024

23:20That were required to maintain our current service levels to our growing community

23:25This included staffing costs for the housing pledge and other planning legislation changes

23:30paramedic shift expansions and a human resources compensation coordinator

23:35New this year administrative support was added to support council and executing their services to residents

23:41administration support was included in the second year of the 2024 paramedic master plan was deferred

23:51Service enhancements represent investments built into the budget that increase our service levels to our current and future guelph community

23:59This category includes increased inclusion supports for recreation programming and a parks electrician to support maintenance and operation of new parks

24:09infrastructure as well as extending the season for current infrastructure

24:13Funding for in-year council decisions was also incorporated

24:16Including funds to support online voting for 2026

24:20maintenance funding for the drill hall building and additional parking ticket revenue from the administrative penalty system approval

24:28Finally two transit pilot programs were included to allow youth to ride free on weekdays after 5 p.m

24:34And all day on weekends and holidays and seniors to ride free one day per week

24:42The budget update also includes service reductions totaling 3.6 million

24:48Of this 1.5 million was already included in 2025 during the multi-year budget for the blue box transition

24:56An additional 2.1 million in service reductions are proposed spanning all areas of the organization

25:03That isn't this is not an easy conversation to have and there will be differing perspectives on each of the services proposed to be reduced

25:10deferred or eliminated

25:12However, it is important to review and assess the services currently being provided to the community

25:18And evaluate those in comparison with the prioritization criteria used to evaluate new investment

25:25What we want to focus on is the process and approach for making these recommendations

25:30Each department reviewed their services and provided proposals for reduction

25:36These proposals were evaluated against the prioritization framework that

25:41GM sales talked about

25:44And looked at the impact of the reductions on creation of new housing units meeting legislative requirements

25:50risk of disinvestment or deferment

25:53Impact to the public and alignment with the future guelph strategic plan

25:57This was an organization-wide exercise and it included tax rate and reserve funded initiatives

26:07The capital budget is funded through annual transfers from the operating budget to capital reserve funds

26:13This category had the largest dollar value increase in the 2025 adopted budget at 10.1 million

26:20And represented a tax levy increase of 3 percent, which by itself exceeded the city's proportionate share of the 4 percent target

26:28As part of the multi-year budget significant increases were built into the budget for capital funding

26:34Including phased in catch-up inflationary adjustments

26:37A continued increase to funding for infrastructure renewal to work toward closing the asset management funding gap

26:44And funding for projects supported under the 100 re and service enhancement strategies

26:49In the budget update the increase for tax supported capital funding was reduced by about half to just over 5.1 million

26:57We will talk more about this later during the capital and reserve funding sections of the presentation

27:05Through the multi-year budget the city has set assessment growth revenue assumptions at 1.15 percent of the base budget per year

27:12Assessment growth revenue is allocated proportionately with 67 percent distributed to the city services

27:19And 33 percent to local boards and shared service agencies

27:24actual assessment growth revenue for 2025 will be confirmed and updated in the upcoming weeks

27:29Based on the most recent update received this past week. There is a high likelihood that we will be meeting the budgeted target

27:39In 2019 the city and guelph general hospital discussed the hospital's urgent capital expansion needs

27:45Identifying three projects totaling 45 million

27:49The hospital requested a 10 investment from the city over five years

27:54In the 2020 budget the city council approved a 4.5 million dollar investment over six years

28:00Council funded the first three years of this investment from the tax out operating contingency reserve

28:06This funding method is not recommended to continue as tax contingency reserves have been exhausted over the planning process

28:14The commitment ends in 2026 with budget adjustments planned for 2027

28:20The guelph general hospital investment is in addition to the city's 2.63 percent proportionate share of the 4 target

28:27You can find more detail for each of these categories in the operating budget update tab on the website

28:36The tax supported corporate excuse me. Sorry

28:39Pardon for the interruption. We've just noticed there's an issue with the live stream

28:43So I'm just going to ask for a quick two minute pause so that we can make sure that that live stream is up

32:21Through you mr. Marin for all members of council. It looks like there is

32:24A

32:25Error affecting the live streaming system right now

32:28So I might just ask for more like five to ten minutes while we work to correct that

32:33No problem. Why don't we uh

32:36Go for a timmies run or something

32:38Um, okay. Why don't we say this? Uh, we'll come back for 9 45

32:44Okay, we'll just have that buffer and if there's any changes we'll do that

32:48But we'll just everyone can at least have like a 15 minute break. Okay

32:54Thanks

33:10Through you mr. Marin my apologies for the delay, but we do have the live stream up and running and can start the meeting again

33:15Whenever you're ready and we've got quorum

33:18All right, just just in case there's councillor joining online. I know councillor Caton was uh,

33:23Maybe just like a 30 second heads up when we'll call the meeting back to order

33:42All right, perfect

33:46So we were at a chart there it is

33:49Um, and so yeah, I'll turn it back over to you and we're good to go. I mean, I just asked out of curiosity. Was that a

33:56An internal issue or was that an external issue external? Yeah, okay

34:01Yeah, yeah, so we don't have to fix it. Okay good. Okay, shanna. Go ahead

34:07Okay, thank you very much. Uh, so moving on to talking about the tax-supported contingency reserves

34:12Um, the reserve balance target for this group of reserves is 8 to 10 percent of annual combined operating revenue

34:19These revenues help mitigate unexpected impacts phase in unexpected or significant cost increases that cannot be avoided

34:28This group of reserves were drawn upon quite significantly throughout the multi-year budget for these purposes

34:33And continue to be in the 25 budget update

34:37As you can see from the chart the balance in this group of reserves is expected to remain below the target range from 2025 through to

34:442028

34:45Notable items supported through the contingency reserves in 25 to 28 include

34:51Facing in the county social services

34:542024 budget increase with total costs of 4.3 million

34:58Over 2025 and 2026 projected to be supported through the tax-supported operating contingency reserve

35:05Use of the contingency reserve to support the provincially funded portion of paramedics expansion in 26 and 27

35:12Because of the one-year lag in provincial funding increases

35:16Facing in expense increases in corporate building maintenance employee benefits fuel and utilities over multiple years

35:24Funding for the two guave transit pilot projects and the second year of the two-year commitment for physician recruitment funding from the ontario health team

35:33And finally an earmark for potential and as of right now unknown impacts on paramedic services

35:40From the closure of the supervised consumption sites

35:43Also incorporated in this budget update are inflows to the contingency reserve totaling 1.7 million over 25 to 27

35:51From adjustments to increase

35:54Increases in short-term investment income

35:57We used interest rate forecast information to estimate the amount of short-term investment income that is over and above the long-term expected rate of return

36:05And adjusted the revenue in the operating budget directing the increase to the contingency reserve to help support these phases

36:11in items

36:14This will be monitored closely as interest rates continue to change frequently

36:19The bicentennial enhancement events planned in 2025 to 20 27 at a total commitment of 905,000

36:27Have been removed from the budget update due to the operating contingency reserve funding status

36:33We reported to you in the second quarter budget monitoring report that a 500 000 negative variance was projected for tax-supported services in

36:41the future

36:43This projection will be updated in the q3 budget monitoring report

36:47But we have included a preliminary earmark for the 500 000 deficit coming out of the contingency reserves at this time

36:54Staff have also continued to recommend through the budget companion report that future tax-supported operating surpluses

37:01Be directed to restoring contingency reserve balances as a top priority

37:05To reduce the city's vulnerability to unexpected events and restore the flexibility to smooth future tax-supported budget impacts through the use of reserves

37:18The city's second largest revenue source after property taxes are the collective water wastewater and storm water utility rate revenues

37:26These revenues are charged based on a user fee model

37:30These are critical housing enabling services that have significant capital asset inventories that are both aging

37:36And in need of upsizing to meet guelph's increased population and jobs targets

37:41Similar to the property tax review and prioritization

37:45The 2025 budget update included a rate review with updates based on the outcomes of the prioritization process

37:52Base budget and inflationary the base budget and inflationary category includes adjustments for increased volumetric revenues due to higher consumption

38:01In water and wastewater and updated revenues to reflect the current equivalent residential units being billed for storm water

38:09Operating impacts from capital in 2025 include investments in the arco site trail networks

38:15forest health invasive species management and security upgrades

38:19Resourcing for improvements to the wastewater closed circuit television and hydraulic cleaning program were moved to 2026

38:26Growth impacts in 2025 include investments to implement the master plan and groundwater flow model

38:34Service reductions totaling 750,000 are proposed for utility rate-supported services

38:40In alignment with the prioritization criteria described as part of the tax-supported section

38:46This increase in cap the increase in capital funding has been reduced by 900,000 as part of the 25 budget update

38:54Mostly due to a reduction in capital transfers for the brownfield renewal strategy

38:59Growth revenue for additional volumetric and equivalent residential units for growth throughout the city was also budgeted for

39:10This slide shows the city percentage increase and dollar value impact on the utility bills for an average three-person household

39:17The adjustments described on the previous slide for 2025 update have reduced the impact of 5.36 percent

39:24for 2025 or an increase of four dollars and 82 cents per month

39:29In addition to the city services fee the grand river conservation authority is funded through the utility rates

39:35And their budget will be considered in january as part of the local boards and shared service agencies process

39:45The non-tax supported contingency reserve balances as a group are healthy in 2024 and exceed the target balance

39:53This chart includes the rate supported contingency reserves as well as contingency reserves for parking and courts

40:00The major drawdown on these reserves in 2025 is for the implementation of in-house utility billing

40:07The source of increases to the balances in the utility rate supported contingency reserves are operating budget surpluses

40:14Which are not included in this picture

40:16A small year-end surplus was projected for non-tax supported services in the second quarter budget monitoring report

40:23And that will also be updated as part of the third quarter report

40:30So moving now into the capital budget

40:33I'd like to start off this section of the presentation by offering a bit of historical context about the capital plan and how we got to where we are today

40:44Over the last several years, we updated our official plan prepared and received approval for the claire malt v secondary plan

40:52updated the comprehensive zoning bylaw and updated all of the major service delivery master plans

40:58Last year as we prepared for the multi-year budget

41:01Staff across the organization did a significant amount of work to get all of the capital projects

41:06associated with those master plans in the capital budget

41:10That in and of itself was a very significant milestone

41:14For the first time we had a clear long-term picture of what we aspired to accomplish

41:19In comparison with the funding we would have to achieve that

41:23And so and we could see that there was a big gap

41:26All of the service delivery master plans that come to council do so with the caveat that the pace of implementation will be dependent on the

41:33availability of funds to implement them

41:36We did as much work as possible to defer some items last year within the budget within the time we had

41:42But we ran out of time to get to a fully funded capital budget and forecast

41:47So that is the place from which the staff recommendation for the motion that you see on the screen was born

41:52And it was approved unanimously by council

41:56In the coming slides, we will delve into the details of that motion

41:59What capital projects are proposed to move forward and how we will impact our how that will impact our two top capital priorities

42:07Maintaining a state of good repair and building the infrastructure to enable housing

42:13And we will also talk about the funding side of that equation how much money we have to do it

42:18As we move through the next section of the presentation, I would offer this for consideration

42:24Although a significant amount of capital projects have been re-sequenced or deferred

42:28Doing all of those things within the next 10 years was not a realistic plan

42:33Even with the significant tax increases that were proposed last year through the multi-year budget for capital

42:39And now we have a new starting place for the next 10 years an ambitious fully funded capital plan

42:45built on conservative increases for tax-supported capital funding and maximizing the tools that we have available

42:52Including inter-reserve fund borrowing and debt

42:55This does not mean that we are here today to set it and forget it for 10 years

43:00And it does not prevent council from doing more if there's an appetite to increase funding for capital in future budget cycles

43:07As we move through the years in the plan, there will be regular updates based on the receipt of grants

43:12legislative changes actual

43:15actual dc collections

43:17Actual project costs as more detailed design plans are developed and so on

43:22There is more work ahead, but we are starting from a realistic and achievable place

43:30First we wanted to ensure that we are all on the same page about what it means to have a fully funded capital budget in forecast

43:37The budgeted capital project expenditures are funded from several sources and we have listed the main ones on this slide

43:45property tax supported capital funding

43:48Rate supported capital funding

43:50development charge and other dedicated growth revenues

43:53federal and provincial funding programs and grants

43:56dividends from gulf junction railway and gulf municipal holdings, ink and debt financing

44:03We take a long-term approach to funding capital and in reaching a fully funded capital budget in forecast

44:09The objective was to have a positive balance in all capital reserve fund groupings by 2034

44:14While minimizing cash flow pressures through the 10-year forecast, we have accomplished that objective

44:21More information about the capital reserve funds and debt strategy will be provided later on

44:26But for now the important thing to know is that there must be enough funds from those sources to pay for the capital project

44:33Expenditures as well as the principal and interest payments when debt financing is used

44:37Less money going into the capital reserve funds means we can do less capital work

44:45With that understanding we now want to talk about capital revenues specifically tax and non-tax supported capital funding

44:53As part of the multi-year budget significant increases were built into the budget for capital funding

44:58including a phased-in catch-up of inflationary adjustments

45:02um a continued increase to funding for infrastructure renewal to work toward closing the asset management funding gap

45:09and project and funding for projects supported by the 100 re and service enhancement strategies

45:14To meet the mayoral direction for a tax levy increase of no more than 4 percent

45:19The increase in tax supported capital funding was reduced by 5 million in 2025

45:25To understand whether or not you have a fully funded capital budget in forecast

45:30Assumptions about how much funding will be available over time are required

45:34Staff's working assumption that underlies the reserve forecast is that capital funding will continue to increase

45:40at about the same overall tax levy impact for each year from 2026 to 2034

45:46As is included in this budget update

45:49This was a critical decision that provided the foundation for the capital prioritization work

45:54And this assumption will be revisited through the next multi-year budget cycle

45:59The following key assumptions were also built into this forecast

46:03The increases in the tax supported transfer for the gross strategy to support the creation of new housing units by funding

46:10and charge revenue losses were maintained

46:13Funding for infrastructure renewal would be protected as much as possible

46:18given the city's known and increasing

46:21infrastructure backlog

46:23The service enhancement brownfield renewal and 100 re funding envelopes were reduced to accommodate the growth and infrastructure renewal increases

46:31As much as possible within the constraints of prior of the prioritized capital budget and forecast

46:37And rate supported capital funding remains largely unchanged overall

46:42The level of debt will also remain at approximately the same level as what was presented in the multi-year budget last year

46:49The result of these assumptions is just over 240 million dollars less in overall tax supported funding

46:56Available in the 10-year capital budget and forecast period compared with what was presented in the multi-year budget

47:02While non-tax and debt financing remains about the same

47:09The previous slides provide you with context for the starting place for capital prioritization

47:14We had less capital funding and debt capacity than we needed to support the capital budget and forecast that was developed for the multi-year budget last year

47:23And then we cut tax supported funding further to meet the 4 target increase and to have a stable base for future years

47:30This required decisions to be made on what capital investments could fit within our fiscal capacity in the 10-year period

47:38To support this a prioritization framework was built based on the budget priorities presented in the april

47:442024 budget confirmation planning report and those that jody presented early earlier today

47:50The capital prioritization criteria is outlined on the slide

47:54And it was applied to every capital project in the 10-year capital budget and forecast

47:59With each project being assigned a rating of one for lowest priority to five for highest priority

48:05An example of a project rated a five would be the downtown infrastructure work

48:09With is both which is both housing enabling infrastructure in a priority development area as well as high priority state of good repair

48:18The results of this work is a balanced 10-year capital budget and forecast that includes high priority capital projects

48:25That are medium or high priority state of good repair

48:28housing enabling infrastructure in priority areas

48:31mandated or legislated projects

48:34projects eliminating safety concerns

48:37And projects with a grant commitment or specific funding source

48:41And lower priority capital projects have been slowed within the 10-year period or deferred outside of the 10-year period

48:49These projects are lower priority capital projects aimed at maintaining a state of good repair

48:55housing enabling infrastructure outside priority areas

48:58amenities that support a growing community

49:01And service enhancements without a grant commitment

49:08The 2025 capital budget includes a capital investment of 197.5 million

49:14over the 10-year capital budget and forecast period from 25 to 20 34

49:20capital expenditures total 2.3 billion

49:23This slide shows the capital budget and forecast that was included in the multi-year budget in blue

49:28In comparison with the 2025 budget update in orange by year

49:33There has been a reduction of almost 1.1 billion from the same period through the multi-year budget

49:39Although this may be a reduction

49:41We are still making huge investments in capital with the yearly average budget being

49:46232 million or almost double the annual average of what we have seen over the past few years

49:54This is another view of the prioritized 10-year capital budget, which is 60.1 percent infrastructure renewal projects

50:0225.8 percent growth related capital and 14.1 percent service enhancement

50:08This breakdown is very comparable with the overall picture by category that was included in the multi-year budget and forecast last year

50:15Through the update the infrastructure renewal category has increased by half a percent with the reduction mostly from service enhancement

50:25When looking at the same information by program of work

50:28We can see that the breakdown is similar to the breakdown in the multi-year budget

50:32The pie on the left shows the percentage for each program of work in the 2025 budget update

50:38And on the right the percentages from the multi-year budget

50:42In the 2025 update 42 percent of the budget is focused on the transportation network

50:47Which includes linear water wastewater infrastructure within the road network

50:52Bridges and structures traffic management and active transportation

50:57This is a slight decrease from the relative proportion of this work in the multi-year budget

51:0224 percent is being invested in water management, which includes water supply

51:07Water resource recovery and storm water a small increase proportionately from the multi-year budget

51:13Parking and transit services is the third largest program of work with 14 percent of the 10-year investment being focused here

51:21The majority of this is for the transit network and includes the wealth transit and fleet services facility

51:27And other investing in canada infrastructure program or isip funded projects

51:32And this program has slightly decreased due to an overall reduction in the budget for the transit and fleet facility

51:40While the proportional share by program of work has not changed significantly from the multi-year budget over the 10-year period

51:46The period from 2025 to 2028 does see a shift toward water management

51:52And the transportation network programs heavy with asset state of good repair work and housing enabling infrastructure

51:59Now I will welcome deputy ceo trevor lee

52:12Thank you. Mr. Dwyer corporate plans programs and technology make up 3 of the 10-year capital budget

52:19This is a 10-year investment of 60.5 million with over 60 of this program being an investment in technology initiatives for critical corporate applications

52:28hardware and software

52:30Investment also includes asset management condition assessments and the collection of asset inventory data to support lifecycle maintenance practices and decision making

52:40It also allows for continued advancement

52:42Of the contaminated site program including work to improve historical landfill properties and the fountain street parking lot to protect the environment

52:50Adhere to regulatory requirements and reduce the contaminated sites liability

52:56Planning and building policy work is also being undertaken to support new housing units

53:01Which includes zoning by-law amendments community land use studies and special policy area reviews

53:08Implementation of the climate adaptation plan is continuing including annual progress reviews and updates

53:16Investments to maintain current by-laws for development charges

53:19Parkland dedication and community benefit charges remain to support the execution plans for housing enabling infrastructure and amenities

53:32The culture and recreation program makes just over 2 percent of the capital investment

53:36However, this is a forward-looking plan and we must remember that we have invested heavily in recreational facilities in the last few years

53:44With the construction of the south end community center, which is set to open in 2026 in the 10-year capital budget

53:51We are continuing to invest in work on 11 main culture and recreation facilities

53:56This work incorporates energy efficiency improvements through modernization of equipment and technology such as hVAC systems

54:04pool pumps and ice equipment

54:06We maintain our recreational facilities to ensure we can continue to offer a wide range of amenities and programming

54:13geared towards all ages abilities

54:15backgrounds and interests

54:18We maintain state-of-the-art technical theater and event equipment

54:22To ensure continued delivery of the level of service expected by our clients artists and patrons

54:29This investment also allows for modernization of museum

54:32Exhibitions and restoration of artifacts to preserve history for future generations

54:39The 2025 investment also includes the placemaking investment in market square to include permanent audio and visual equipment

54:46supporting civic events that enhance community engagement

54:51The implementation of the culture plan 2030 is paused until until funding is available

54:57This includes projects that action the older adult strategy to create an age friendly city plan

55:03installation of sensory rooms

55:05new park activation stations

55:08incentivization of the development of culture programming in the winter

55:12months

55:13and consideration

55:15To the adoption of the culture friendly bylaws policies and practices

55:26Emergency services includes an investment of 57 million over the 10 years

55:30This includes the investment to replace and expand paramedic vehicles and patient equipment

55:35To continue to provide essential urgent health care to the growing communities of gulf and wellington county

55:42We also continue to invest in the replacement of fire trucks and firefighter self-contained breathing apparatuses

55:48bunker gear and PPE

55:50To maintain safe and effective fire and rescue responses

55:54The parking and transit program of work includes an investment of 336 million over the 10 years with transit making up 97% of this

56:07The investment in parking is primarily to maintain current public parking assets

56:13Along with the state of good repair work. We are making investments in parking technology

56:17to improve and optimize essential systems

56:20On the transit side, we're expanding and enhancing the transit network

56:25Which will add 90 000 additional service hours and 22 additional electric buses

56:31Which are funded in part by isaib. However, certain route expansions and enhancements have been delayed to the last four years of the 10 year future ready action plan

56:42The annual program to replace and upgrade bus stop amenities will also continue

56:47But at a slower pace than previously planned

56:50The investment in transit also provides for lifecycle replacement of essential transit technologies

57:00Parks and open spaces make up 6% of the 10 year capital budget with an investment of 138 million

57:08With this investment, we are maintaining park infrastructure in following requirements and guidelines set up by the technical standards and safety authority

57:16and the canadian standards association

57:18It also includes replacement and renewal of equipment and facilities that support park operations

57:24And continued investment in gulf's urban forest guided by the urban forest mass management plan

57:31Also included is the design and construction of seven new parks

57:35As well as parkland acquisition both at a slower rate than previously planned

57:40To better match the anticipated receipt of growth revenues

57:43The execution of plans such as the parks and recreation master plan

57:48Have been slowed significantly from the original 10 year plan to a 20 year or more plan

57:54With many projects deferred within and outside the 10 year capital budget

57:59Falling outside the 10 year capital budget are new pickleball courts

58:04A new skateboard park and lighting for the existing skateboard park as well as the construction of new sports fields

58:11I'll now welcome deputy ceo jane holmes to present on the next section. Thank you, mr. Lee

58:20The corporate facilities public works and bylaw program accounts for 4% of the 10 year capital plan

58:33This is a 10 year investment of 87.8 million dollars and includes investments to maintain over 70 facilities

58:41Assets and equipment in a state of good repair

58:44This includes the provincial courts building city hall market square and the operations facilities

58:49And the operations facility at 45 municipal street to name a few

58:54Work is prioritized using asset management principles condition assessments and an inventory data

59:01This investment also includes preventive maintenance to mitigate more costly repairs and deferred preventable

59:07replacement as well as maintaining compliance with legislative requirements

59:12deferral of life cycle replacements was necessary due to the financial due to financial capacity

59:16However, this also requires additional investment through operating budget for repairs to maintain those end of life assets until they can be prioritized

59:25This program also includes the replacement of public works vehicles

59:29And assets that are critical to servicing the road sidewalk and active transportation network

59:34network

59:35This includes winter control equipment

59:38As well as vehicles used to provide maintenance activities at park aides parking lots traffic signals downtown public spaces and storm water facilities

59:47Efforts are being made to reduce and right size the city's vehicle fleet along along with the exploration of alternative fuel options

59:58The facility's long-term plan is how we plan to

1:00:01Execute these facility works in the correct sequence using our underlying policy drivers the asset management plan and levels of service

1:00:09master plans and provincially legislative

1:00:11legislative growth plans

1:00:14Data provided through building condition assessments and asset inventories help determine the priorities within this body of work

1:00:21Facility work is integrated into multiple programs of work

1:00:25And the long-term facility overview showcases the key key facility projects planned over the next 10 years

1:00:32facilities for water and wastewater are being expanded to support growth needs

1:00:36Including the new cleith water treatment plant the plant number two expansion and the tertiary treatment

1:00:42facility at the water resource recovery center

1:00:46Other end-of-life

1:00:47Facilities are being replaced and expanded for existing and future needs such as the gulf transit and fleet services facility

1:00:54Renewal works are being done in some cases to extend the life of facilities and delay future expansions

1:01:00All facility work whether it be a full facility renewal

1:01:03expansion replacement or replacement of individual individual building components such as hVAC are being done incorporating modern technology

1:01:11and energy efficiency features to support our race to zero goals

1:01:17Although the majority of work is budgeted in the next four years

1:01:20There's no new construction being approved for 2025 and council will receive an update in q2 of the next year on the gulf transit

1:01:29gulf transit and fleet facility design as well as an overview of the 10-year capital plan including sequencing in advance of the

1:01:372026 budget confirmation

1:01:40The solid waste program of work includes a 77 million dollar investment over 10 years and makes up 3 of the budget

1:01:48Some of these investments include the maintenance and assets and state of good maintenance of assets and state of good repair

1:01:55maintaining diversion of waste from landfill through program related recommendations of the solid waste master plan

1:02:02needs and facility studies for waste disposal alternatives energy from waste circular

1:02:08economy policy levers

1:02:10maintain critical building systems at the materials

1:02:13recovery facility to support site maintenance

1:02:17And repurpose the collections operations center as well as the retrofit of the administration building is included which delays the need for expansion beyond the 10-year plan

1:02:27Deferred outside of the 10-year plan includes several solid waste management plan recommendations recommendations such as the proposed reuse

1:02:34center and the relocation of the hazardous waste depot

1:02:40The transportation the transportation network is the largest program in the 10-year capital budget at 42%

1:02:46This is an investment of almost 1 billion dollars over the 10 years and includes the following

1:02:52Higher higher priority bridge bridge and structure rehabilitation and replacement and preventive preventative maintenance

1:02:59Higher priority full road reconstruction based on an overall corridor asset condition scores which include underground water and sanitary

1:03:08The downtown infrastructure renewal program including the investment for enhanced level an enhanced level of streetscaping as approved by council on september the fourth

1:03:17Housing enable an infrastructure within the downtown infrastructure renewal program as well as for gid and chloramalpy

1:03:25linear asset renewal programs such as sewer

1:03:27Relying the annual asphalt sidewalk renewal program including crack ceiling and new sidewalk gap infill

1:03:34Priority trail and active transportation projects funded in part through isip and other grants signal upgrades replacements and new

1:03:43Road safety initiatives with funding from the transportation reserve

1:03:48The golf trail master plan is now anticipated to be implemented over a 25-year period rather than 10 years

1:03:55A significant number of projects identified in the transportation master plan for implementation in the short term are now planned

1:04:02Are now planned to be implemented over 30 years instead of 10

1:04:08The water management program at work is the second largest program. Sorry. Sorry interrupt. I had several

1:04:14Counselors at the same time go. Which one was that? Can you just go back one slide? Yeah

1:04:20And maybe just say the last two lines there

1:04:24Sorry, I'll okay. I'll read it out the gulf

1:04:27Okay, a significant number of projects as identified in the transportation master plan for implementation

1:04:34In the short term are now planned to be implemented over 30 years instead of 10

1:04:38Okay, all right

1:04:43The water management program at work is the second largest pro second largest program that has a 10-year investment

1:04:53Over just half a billion dollars

1:04:56Investments in critical infrastructure maintenance renewal expansion and security are maintained to ensure ongoing availability of safe drinking water

1:05:04and capacity to process wastewater to meet regulatory requirements and to support growth on the stormwater side

1:05:11What work is being done to address the backlog of aging stormwater infrastructure and protect the city's water supply?

1:05:22Some capital projects some capital projects are being approved in 2025 also have operating impacts that need to be added to the operating

1:05:30Budget in a future year to operate maintain or service the asset that is being created

1:05:35Total future operating impact of capital projects being approved in 2025 is 3.9 million

1:05:42Under corporate facilities public works and bylaw. This includes 175 thousand dollars for a growth tandem sultan sander

1:05:50250 thousand dollars is included under emergency services for the maintenance system software for next generation 911

1:05:57Under the parking and transit services program of work

1:06:00This includes 2.5 million dollars which is specific to transit capital projects which includes the

1:06:07Includes the resourcing fuel maintenance and insurance

1:06:10Net of anticipated fare revenues for six new buses

1:06:14four for root review year five and two for conestoga root requirements

1:06:21Under solid waste services the first set of downtown public space waste containers are anticipated to have a 260 thousand dollar

1:06:28operating cost when fully implemented

1:06:31Additionally a new growth packer comes with a 193 thousand dollar operating impact

1:06:37Under the transportation network additional operation operational costs related to the downtown streetscaping through the windom street north

1:06:45Reconstruction is anticipated to be 300 thousand a full listing of operating impacts from capital for the 2025 to 2028 budget can be found

1:06:54on the website

1:06:57As previously mentioned infrastructure renewal and growth make up almost 86 of capital investments over the 10-year budget and forecast period

1:07:05and the top two priorities

1:07:07In the capital prioritization framework

1:07:10We're keeping assets in a state of good repair to provide expected level of service for the community and building housing enabling infrastructure

1:07:18to allow for growth

1:07:20Mr. Mayor, we had a break planned at this time. Um, so maybe we'll

1:07:26It's okay with you. We'll take a break and then we can invite terry gayman to come up and

1:07:30Um talk about the next section

1:07:33Or would you like to keep going?

1:07:35um, may I just ask

1:07:37How much uh after terry was there?

1:07:4147 more people or

1:07:43Not 47

1:07:46But there's there's a few slides to go still

1:07:49quite a bit to go

1:07:50Okay, just over half. Well, you know what? Um

1:07:53I

1:07:54I've said what how about time frame was it another 15 minutes or was it another hour? Do you think I just I just want to try to

1:08:00judge what you thought it was

1:08:02to the degree of

1:08:03Just because we had like a 15 minute break during the whole uh, well, we can just keep going. We're okay to keep going

1:08:08Okay, is uh, can I just get a temperature in the room? Is that okay? Keep going? Yeah, okay

1:08:13If it's okay with you guys, we'll just keep keep going and

1:08:15yep

1:08:17That's terry was really hoping for that break

1:08:20All right, and thank you gene. Thank you so much

1:08:24All right, we'll keep going. Okay. Good morning. Yeah, mayor guthrie and council. I hope you enjoyed your brief break

1:08:29Uh, so I'm here today to speak to you about uh, maintaining state of good repair

1:08:34And how we have connected the budget to the work the asset management

1:08:39Team is doing on levels of service that is underway now

1:08:42So there are two

1:08:47All right

1:08:49All right, there are two important asset management concepts that are connected to budget state of good repair and level of service

1:08:55Maintaining state of good repair through investments and infrastructure renewal means taking care of the city's assets to ensure continued service delivery

1:09:02For the community this can mean repairing or replacing roads pipes buildings and playgrounds. For example

1:09:08The goal is simple take care of what you own before it fails

1:09:13The corporate asset management plan outlines a strategy to achieve that goal and minimize the city's risk

1:09:19Level of service is an asset management concept that seeks to describe how well assets are performing their intended functions for the community

1:09:27We need to discuss level of service today because asset management regulations require wealth to document both existing levels of service

1:09:33Which we did earlier this year via council approval of the 2024 asset management plan

1:09:38and desired levels of future service

1:09:41Which council will receive next year in the 2025 asset management plan update

1:09:46For the first version of desired levels of service

1:09:48Guelph must set a goal to show the connection between the pace of investment in budget and time to achieve the desired state

1:09:56There can be a broad range in what people want for desired levels of service

1:10:00But ultimately it must be directly aligned to budget investments and not individual wish lists

1:10:05As an organization we have worked to bring back a prioritized funded tenure capital budget and forecast as part of the 2025 budget update

1:10:14Within that context it doesn't make sense to then ask you what your desired levels of service are for the community

1:10:21and put that in an asset management plan

1:10:23Instead next year staff will be asking council to take the approach of establishing the desired levels of service to represent a future state

1:10:30Where there is no infrastructure backlog and asset renewal is funded sustainably

1:10:35And this is in alignment with the information previously presented to council in various asset management reports

1:10:41Staff will report on the estimated time to achieve the targets based on the investments included in the capital budget and forecast

1:10:48As a reminder sustainable funding targets represent the time where funding levels are enough to stop the infrastructure backlog from growing

1:10:55And where with continued investment the backlog decreases to zero

1:11:00To better understand levels of service the images above illustrate a road in excellent fair and very poor condition

1:11:07Roads that provide appropriate levels of service can be counted on by guelph

1:11:10For many things like commuting goods movement transit and emergency services. It helps ensure the city can thrive

1:11:18Next let's discuss the condition distribution for some of the city's key assets and how it relates to level of service in state of good repair

1:11:27This graph shows the condition distribution of the city's core asset types including roads and pipes

1:11:32The distribution represents existing and forecast levels of service based on the proposed investment levels with a range of assets performing well

1:11:40Those are shown in green and some assets being passed due for replacement, which you see towards the bottom of the graph

1:11:50This next chart illustrates what asset condition distribution looks like once sustainable funding is reached and the backlog has been reduced

1:11:57In terms of asset management strategy

1:11:59This is what the desired levels of service in state of good repair look like

1:12:03From a portfolio condition perspective with no assets passed due for replacement

1:12:10Over the next few months staff will prepare sustainable funding analysis for each asset group to identify the time required to reach desired levels of service

1:12:18By each asset type and this information would be presented in the 2025 asset management plan to council

1:12:24Staff have already completed the cumulative analysis for all combined asset types, which I'll present on the next few slides

1:12:32When staff presented the 2024 asset management plan earlier this year

1:12:35Council directed us to report back on changes to the estimated time to reach sustainable funding levels based on revisions contained in this 2025 budget update

1:12:45We are presenting this information separately for tax and non-tax supported services because there's a big difference between the progress in both towards sustainable funding

1:12:54The goal is to reach sustainable funding for assets as soon as possible while balancing all other priorities like housing and affordability

1:13:01Staff prepared updated sustainable funding analysis for all asset types combined presented in this graph

1:13:07Based on the 2025 budget from a tax funding perspective only the city anticipates reaching sustainable funding levels in 2046

1:13:16Where it was previously estimated at 2041 based on the 2024 adopted budget

1:13:23From a non-tax perspective the 2025 budget update did not change the expected sustainable funding date

1:13:29As we continue to be on track to reach sustainable funding targets in 2029 for these funding sources

1:13:35There is a 17 year difference between tax and non-tax sustainable funding forecasts

1:13:39Which means tax funding will act as a constraint on how quickly asset renewal work can progress

1:13:47So now what the next steps ahead of council approval of the desired levels of service targets in 2025

1:13:53include conducting community engagement and analyzing the asset portfolio for each grouping of asset type

1:13:58The 2025 asset management plan will then be presented to council for approval in q2 2025 and time to meet regulatory deadlines

1:14:06After 2025 there will be opportunities for continued refinement as the team seeks to engage you and the community on a regular basis through

1:14:14progress checks and monitoring to understand if any adjustments to the city's strategy

1:14:19Are required to meet the needs of the community ahead of the 2028 asset management plan update

1:14:24If adjustments are needed in the future appropriate financial strategies can be considered through future budget cycles

1:14:29And now i'm going to pass it back to deputies to ao homes to talk about housing enabling infrastructure

1:14:36Great. Thank you. Mr. Gaiman

1:14:44The proposed capital budget takes the state of good repair needs and balances them with other the other priorities

1:14:49I mentioned earlier, which is enabling infrastructure

1:14:52Required to support wealth as it grows the next few slides will demonstrate how staff have worked diligently across the organization

1:14:59To conduct a comprehensive review of the capital plan to ensure critical infrastructure projects that will help unlock housing are incorporated into the budget

1:15:10Shaping wealth is the growth management plan approved along with the official plan the amendment 80 and it defines

1:15:17Planning horizons and strategic growth areas that help staff prioritize timing for growth related capital investments

1:15:24The capital plan has also been refined to incorporate investments in housing enabling infrastructure needed to meet wealth housing pledge

1:15:34Staff rely on council approved master plans that outline the projects needed to enable wealth's growth

1:15:40in alignment with the various planning horizons

1:15:43Adjustments to project timing have been made where appropriate to reflect the changes to growth planning that I just highlighted on the previous slide

1:15:51Staff utilize the capital prioritization framework referenced earlier in this presentation to guide the sequential investments

1:15:58Of growth enabling infrastructure works for capital needs such as roads water towers and pipes as examples

1:16:07Enabling infrastructure is budgeted for prioritize strategic growth areas such as the downtown the gulf innovation district in claremont b

1:16:15We have to prioritize in a sequence because we can't do everything at once

1:16:20Downtown will be a top priority because these projects unlock growth, but also achieve critical state of good repair works

1:16:27The gulf innovation district will see enabling investments

1:16:31Investments made including water main and sanitary required to service growth in that area

1:16:36And there are investments in the capital projects required to service claremont b beginning

1:16:41With works required to service phase one of that secondary plan

1:16:47Investments we are making enabling infrastructure within the 10-year plan are anticipated to provide city-owned infrastructure needed to meet

1:16:55The 18 000 units required by the housing pledge

1:16:58However, the city is only one partner on the path to creating new housing

1:17:03Our development and building community as well as the economic conditions will continue to play a huge role

1:17:08in meeting this goal

1:17:10To help facilitate faster movement on growth enabling infrastructure

1:17:14The city is working on several initiatives that can help get construction done faster

1:17:19Including developing and municipal service and finance financing agreement policy

1:17:24Commonly referred to as front-ending. This is another tool that will be used to allow developers to build infrastructure faster to support housing

1:17:31Which is then repaid by the city as housing development occurs

1:17:35Given all the work on the capital delivery and policy the 2025 budget makes substantial investment in enabling

1:17:41Gwell's growth and with that I will now turn it over to shana wood wire to discuss the financial strategies that will help these investments happen

1:17:57Thank you deputy deputy ceo holmes

1:18:00The city uses a suite of long-term financial strategies to support the advancement of capital projects

1:18:06The next few slides include charts showing the reserve fund activity for each of the financial strategies

1:18:13The blue bars in the charts represent funding going into the reserve funds that support the strategies and the orange bars are the expenditures

1:18:20associated with each of the strategies

1:18:23The solid black lines plot line plots the annual forecasted balance

1:18:28While the dotted black line provides the comparison with the forecasted balance from the multi-year budget

1:18:36On this slide we have the tax-supported infrastructure renewal strategy

1:18:40This strategy funds the planned maintenance and replacement of city-owned assets

1:18:45As you've heard from mr. Gayman. This strategy is directly linked to asset management planning

1:18:51How we plan for and prioritize our infrastructure needs to help ensure the city can continue to provide a reasonable level of service to the community

1:19:00This chart includes the infrastructure renewal reserve fund and the dedicated gas tax and candidate community building fund grants

1:19:07A less aggressive approach to increasing tax-supported funding for this strategy has been taken in the budget update

1:19:13To lessen the effects on the tax levy

1:19:16However, the outlook in the strategy has significantly improved from what was presented last year

1:19:22As a result of the capital prioritization process, which slowed down projects to get to the balance over the next decade

1:19:32This slide shows the same picture, but for the rate-supported services

1:19:36As previously mentioned funding levels have remained the same as what was included in the multi-year budget

1:19:41and the big change here is that

1:19:44That took this from a negative overall balance to positive was the reduction in capital spending

1:19:49While the overall picture for the rate-supported services remains positive throughout the budget and forecast period

1:19:56The water capital reserve fund is in a deficit position beyond 2026 for the duration of the 10-year forecast

1:20:02And the waste water capital reserve fund is in a positive position through the 10-year forecast and beyond

1:20:08More information about this is included in the infrastructure renewal financial strategy document on the budget website

1:20:15This imbalance led staff to make a recommendation to council in the budget companion report to provide direction

1:20:21To investigate the customer impact of adjusting these two utility rates with the objective of eliminating the deficit in water capital

1:20:29And reducing the positive balance in the waste water capital reserve fund

1:20:34Adjustments resulting from this work would be proposed through the 2026 budget update

1:20:43There are three dedicated funding streams for growth capital costs

1:20:46Parkland dedication cash and loo community benefits charges and development charges

1:20:52In the prioritized capital budget and forecast the dc reserve funds as a group are projected to remain positive with the exception of

1:21:002026 and 27

1:21:01Two years when significant growth related water waste water and public works projects are budgeted

1:21:07While there is a healthy positive balance projected in the dc reserve funds by the end of the forecast period

1:21:14DCs are a highly volatile revenue stream and are subject to economic and market conditions

1:21:20Lower than budgeted dc collections may result in the deferral of projects or use of debt capacity later in the 10-year forecast to bridge cash flows

1:21:28Staff will also consider if additional growth projects can be accommodated in the later part of the 10-year forecast

1:21:34Depending on actual collection experience

1:21:40Some capital costs associated with growth are not eligible to be funded through a specific growth revenue funding stream

1:21:47Most notably solid waste non-diversion

1:21:50Additionally, growth studies were removed as dc eligible costs through bill 23 and shifted to a property tax and utility rate burden

1:21:59You may note that there are two different shades of orange on this slide with the darker orange representing

1:22:04Growth related capital costs that are not dc eligible and the light orange representing the cost of development charge exemptions and discounts for

1:22:12tax-supported services

1:22:14While tax-supported funding for this strategy has been maintained at the same level as what was presented in the multi-year budget

1:22:21There have been further legislative changes since last year that have impacted the projected balance in this reserve fund over time

1:22:28An additional changes will be processed in the next few months as well

1:22:32In june 2024 the provincial government passed bill 185 which added growth studies back in as a dc eligible cost

1:22:42Municipalities that had updated their dc study between bill 23 and bill 185 as guelph did

1:22:48Were given six months to approve a bylaw update to add growth studies back into the dc

1:22:54Guelph council will consider this dc update in mid november and budget adjustments resulting from that would be processed after approval

1:23:02This would improve the outlook for this reserve fund

1:23:06The bill 185 impact that has already been updated and is reflected in this chart is the removal of the mandatory phase in discount

1:23:14You can see that this has significantly improved the projection in the earlier years as it was most impactful in the first year of a dc

1:23:21bought new dc bylaw

1:23:23However at the same time that bill 185 was passed the province enacted the affordable housing exemptions that had been introduced through bill

1:23:3023 which negatively impact this reserve fund as well as the utility rate capital reserve funds

1:23:37The actual number of affordable housing units built in any given year will determine how much this costs

1:23:43The assumption included um at this time is that affordable units will be created at the same rate as the average of the last five years

1:23:52Like dc collections the costs associated with all dc exemptions and discounts are dependent on the timing of eligible building activity

1:23:59and will fluctuate

1:24:01actual collections and exemptions will continue to be monitored closely

1:24:05And reported on through the quarterly budget monitoring reports

1:24:12The service enhancement strategy supports investments to advance council strategic plan and approve service delivery master plans to increase service levels for the community

1:24:22As you have heard already the overall tax supported capital funding envelope was reduced for the 2025 budget update

1:24:29To continue to prioritize transfers into infrastructure renewal and growth

1:24:34service enhancement funding was reduced in 2025 and 26

1:24:39Over the 10 years the total funding provided for this strategy has been significantly reduced and the service enhancement reserve fund is projected to have a negative balance until 2034

1:24:50In 2025 staff have made a five hundred and twenty eight thousand dollar reduction

1:24:54To tax support for parking and a corresponding reduction to the annual transfer to the parking capital reserve fund

1:25:01This funding was redirected to the service enhancement strategy to support the execution of more active transportation network and transit enhancements

1:25:10In the 2025 budget update as mentioned earlier

1:25:14The phase in amount for the south end community center and baker library operating costs has not been increased

1:25:20And this was made possible on the capital funding side by the 13.5 million dollar federal grant for the library that was received earlier this year

1:25:30The updated level of funding in the brownfield renewal strategy

1:25:34Provides for continued advancement of the city's contaminated site program

1:25:38Including historical landfill properties at the fountain street parking lot

1:25:42Which lower prior while lower priority contaminated site investigation and management work that is not required for regulatory obligations has been deferred

1:25:51The uncommitted reserve fund balance provides a buffer for managing unexpected costs arising from investigations

1:25:59The value of the liability from contaminated sites as of the end of 2023 was just over 30 million

1:26:05Progress toward reducing this liability is expected to continue within the 10 year forecast

1:26:10And further resources will be required to clean up known city-owned contaminated sites

1:26:19The 100% renewable energy strategy or 100 re

1:26:23Funds projects that reduce emissions and support gulfs raised to zero goal to become a net zero carbon community by 2050

1:26:31Through the capital budget prioritization

1:26:33Some projects from this strategy were deferred beyond the 10 year capital budget

1:26:38Or the pace of investment was slowed

1:26:40The reduction in funding for this strategy overall will mean that there will be less financial capacity to advance future projects that are in the research phase

1:26:49This will impact the city's ability to meet short and long-term 100 re and race to zero goals

1:26:54Staff will continue to build and evaluate the business cases for large-scale projects and actively consider other funding opportunities where possible

1:27:03The projects that continue to be funded through the 100 re strategy are all part of the electrification of gulf transit

1:27:10And can and will contribute to reducing the city's emissions

1:27:13The proposed updates updated strategy means that there will be a project of negative balance in this reserve fund until

1:27:212033

1:27:22Returning to a positive balance in 34

1:27:28Last year we presented a debt strategy that included the planned issuance of 50 million in debt annually beginning in 2025 to support the capital program

1:27:37At that time we cautioned that this level of debt could affect the city's credit rating

1:27:42Now the timing of this potential impact has become clearer and we want to ensure that council is fully fully informed

1:27:49If the issued debt is projected to exceed s and p's target of 30 percent of operating revenue within their forecast period

1:27:57We can expect a lower future credit rating for the city

1:28:01S and p's forecast period includes the current year plus two additional years

1:28:06Therefore we could see this impact as soon as the 2025 credit rating when the 2027 forecast projects debt at the 30 percent threshold

1:28:15This slide illustrates the projected debt as a percentage of operating revenue

1:28:20Comparing it to both the city policy limit of 55 percent and the s and p recommended 30 percent

1:28:27It is important to note that this figure does not include debt capacity reserved for growth

1:28:32Because that debt is not allocated to specific capital projects. It is simply capacity that is set aside in case dc collections lag projections

1:28:41We will closely monitor this through annual budget updates and debt reporting and any new debt proposals will include updated information based on actual experience in the council report

1:28:52Should this debt be required the city would exceed the s and p recommended limit for a longer period and could also approach our policy limits

1:29:02While we all understand the value of a triple a credit rating

1:29:05We must also keep perspective on the fact that the credit rating is a tool that helps the city to borrow funds

1:29:11To move forward capital priorities at the best possible rates and an a a positive credit rating is still an excellent rating

1:29:18A credit rating uses mathematical models to predict risk, but we can't let the tail wag the dog

1:29:24We have capital projects that need to move forward

1:29:27And using finance debt financing for long-lived assets can help move forward much needed infrastructure work and support

1:29:35Intergenerational equity in budgeting by aligning the payment for these expenditures and the tax and rate impacts with the usage of the assets

1:29:47This chart shows another view and that also supports staff's recommended use of debt financing despite the expected impact on the credit rating

1:29:56Legislation mandates that municipalities must not borrow if the debt servicing costs exceed 25 percent of own source revenues

1:30:03A threshold known as the annual repayment limit

1:30:07As you can see even with the planned use of debt as outlined in the debt strategy

1:30:11We project that we will remain well under that legislative limit of debt that we could issue

1:30:17Not exceeding five percent of own source revenue

1:30:19Debt continues to be planned for a mix of previously approved capital projects debt refinancing and proposed capital projects

1:30:28Included in the current capital budget and forecasts that meet the requirements in the debt management policy

1:30:38So it's important to remember that the city has a long-term financial framework that sets policy for the forecast of the capital budget and reserve funds

1:30:47These forecasts are looked at from a 10 and 25 year lens and informed decision-making

1:30:53Over the next 10 years the city will be maximizing the reserve fund capacity while taking on higher debt levels

1:30:59Which will increase our vulnerability and reduce our flexibility to respond to the unexpected

1:31:05The proposed plan includes reliance on inter reserve fund borrowing through the capital budget and forecast period

1:31:12All of this will be closely monitored and any necessary updates whether it be recommended increases to capital funding

1:31:19Further deferral of capital projects or use of debt beyond the debt strategy currently proposed will be recommended through future budget updates

1:31:27Additionally, the federal and provincial governments have been offering a significant number of grant opportunities recently

1:31:34And staff have thoroughly pursued every opportunity

1:31:37Any grant funding received will help reduce vulnerability and improve flexibility and will continue to pursue these opportunities as they become available

1:31:45The timing of dc collections is uncertain

1:31:48Linked to building activity and likewise the timing of exemptions is also uncertain

1:31:53The forecast has been built with collection and exemption assumptions, but market conditions outside of the city's control will dictate the actual outcomes

1:32:01To mitigate this risk. We set aside 230 million 234 million of debt capacity to support growth related infrastructure

1:32:10If collections underperform expectations

1:32:12With reserve and debt capacity maximized throughout the capital budget and forecast period

1:32:18There was no capacity to add or increase tax supported capital projects without an offsetting reduction or to another project or an increase in capital funding

1:32:29Overall the size of the city's capital budget over the next 10 years is on average double the capital budgets of the past several years

1:32:37To support this plan tax supported capital reserve funds will be significantly drawn down and there will be an increase in debt levels

1:32:45Given this reality staff have recommended that council provide direction to undertake a sustainability analysis

1:32:51on the overall level of tax supported capital funding and report back to council with any recommendations prior to the next multi-year budget cycle

1:33:00And with that I will invite cio baker back up to close our program

1:33:04Thank you so much. So today is the beginning of a month long process of reviewing and engaging on guelph's 2025 budget update

1:33:17We know that there will be tough conversations and decision making ahead of council

1:33:22We have time for those conversations to happen and staff are here to support you

1:33:25Starting next week the mayor will be hosting a budget breakfast with the chamber of commerce and then through the month there will be several town halls

1:33:33That will be an important engagement opportunity with the community similar to past budgets. Oh, I apologize. I didn't click the button. Sorry

1:33:44We have time for those conversations to happen and staff are here to support you starting next week. Um, as as you see there, we are host

1:33:53Sorry, I've got myself out of alignment. We're doing the budget breakfast with the chamber like I said

1:33:58And then several town halls next week

1:34:01And then similar to past budgets. We have a special night set aside to hear from public delegations on november the 19th

1:34:09The budget board is open

1:34:12And we've already posted a few a few responses up there. So you we encourage you to use it and ask your budget questions

1:34:20It's a publicly viewable tool. We're all council questions and staff responses

1:34:25Are visible to the community to support transparency in the process

1:34:30Please keep an eye on this board and read it throughout the month

1:34:34Your colleagues may have the same question as you and this is a way for us to be efficient in responding to

1:34:40different questions at the same time

1:34:43All hands are on deck to support your questions. Please don't feel like you cannot call or set up meetings with finance a member of the executive

1:34:52or a general manager

1:34:54If you have questions about a particular service, that's okay to do and then we will try to capture those main questions and answers and post it for

1:35:01Everyone's benefit

1:35:03On november 27th, we will come back together to work through the amendment process

1:35:08We hope by then all your questions would be answered and you can focus on decision making

1:35:13The time to engage with us is now. Let's use our time in the next four weeks to work together to find the best path forward for gulf

1:35:21Finally, I want to sincerely thank all the city staff

1:35:25For their dedication and getting us to this point. The 25 budget update development was like no other

1:35:32Full of complexity and what seemed at some points a lot of change

1:35:36The collaboration and teamwork over many months is something to be incredibly proud of

1:35:42Our job as a city is to serve the public and our budget combined with our strategic plan and your team

1:35:47And our budget combined with our strategic plan and your council direction is the roadmap for how we achieve it

1:35:55So we want to deliver public service that supports high quality of life. We want to build complete communities

1:36:01It's part of what makes gulf a great place to live

1:36:04And like has been said a number of times we can't do everything all at once

1:36:09And also meet the affordability expectations for residents

1:36:13How do we build community and what does it take to make it all happen as we work to answer this question throughout the remainder of the

1:36:19Budget process we will discover and reaffirm what a future gulf looks like

1:36:24And so with that mr. Mayor and members of council

1:36:28That completes the city's the city staff presentation and we'd hand it back to you

1:36:34for

1:36:35questions

1:36:41Thank you. Let me just see if

1:36:44If there's questions on

1:36:47what we've heard

1:36:49So far is there anyone that wants to jump in yet before

1:36:54We move into either a break and or closed session or we can

1:36:58we can

1:36:59Okay, councillor coller and downer

1:37:05Thank you to your worship

1:37:09Overall I appreciate that the work that stuff happened doing

1:37:13And I am very impressed by the budget that has been brought forward based on the mayoral direction

1:37:19I I do question

1:37:21We the direction was given to lower the

1:37:25budget increase to to for below 4%

1:37:28But then what I'm seeing is that in future years it's going to then continue. So are we

1:37:36Do is the plan then that council would need to give direction each year to keep it within this level?

1:37:42Or you know, how would that play out into the future?

1:37:47Through the mayor to councillor Goller. Yes, I believe the

1:37:51intention would be to

1:37:53Get seek direction for future years and in the next multi-year budget cycle. We would look for directions

1:37:59for the four years so that we can

1:38:02um, we can

1:38:03Hopefully reduce the amount of change in the confirmation years

1:38:07That would be the update now the other important part of that is that we have

1:38:12Set that capital funding increase at a lower amount already for the future

1:38:18So the scope of the future changes should be limited to the operating budget in this

1:38:24Multi-year budget cycle. Okay. Okay. Thank you. Thank you for that

1:38:28um, if you don't mind I just wouldn't mind answering that a little bit too just because it involves me

1:38:33so, um

1:38:35I uh

1:38:37I do not want to have to do the strong mayor directive every year for trying to keep things

1:38:43affordable for the community

1:38:46And so I I would actually just as shanna just answered

1:38:50I think council direction

1:38:53Moving forward is the way that I would love us to be able to do that

1:38:58So when that moment comes for an opportunity for us

1:39:00Discuss that whether in the budget cycle or a budget debrief as we do every year

1:39:06opportunity to set the course for the next two

1:39:09budgets

1:39:10I think that would be great that it is a council position

1:39:15That that sets that affordability for the community. And so I just want to

1:39:21State that kind of in conjunction with what shanna said and how the outlook looks

1:39:26That it would be my goal to have

1:39:29Council wrap around something that sends a message of affordability to the community moving forward. Okay

1:39:36Thank you worship. I appreciate that

1:39:38um

1:39:40I wanted to follow up with some of the the service reductions

1:39:44um, and I'm

1:39:45I'm wondering how does this impact or at what point do we figure out how this impacts

1:39:51For example, we approve the one canopy and I believe I I didn't see it directly

1:39:56But I wonder at what point do we get an update on how many

1:40:00You know, how much longer it's going to take to reach that goal based on the service levels

1:40:06And I saw that there were other service reductions to water conservation education

1:40:10You know, how does how do we find out how those reductions would actually impact our ability to

1:40:17To provide water for for the city. So how does how do we get the information on the on the impact of these reductions?

1:40:25Sure through the mayor to councillor goller

1:40:27um, there's there's information included in the capital budget update

1:40:33Document on the website about this

1:40:35But there's been another question that we've received that we will also be posting a response to on the budget board

1:40:41That will have a consolidated table

1:40:44Outlining the impacts on each master plan

1:40:48Perfect that that's very helpful. I will look forward to to finding that information

1:40:54Would that include information about our ability to reach our 100% renewable energy targets?

1:41:03Through the mayor. Yes, it will. Okay. Thank you. Thank you worship

1:41:06Thank you downer than Gibson. Thank you. Thank you, mr. Mayor. So

1:41:10Is that the the same question I asked you the I asked the other day about

1:41:16So we have timelines with each of our master plans

1:41:18Are we're going to get the new pages of what those implementation timelines are because some of them are over 20 years

1:41:2425 years

1:41:26um, I think we need to be transparent with the public about

1:41:30When those projects are coming in especially when it impacts amenities in neighborhoods

1:41:36Which have been given a low priority. It sounds like it sounds I heard amenities

1:41:41Well, that's amenities supporting new growth. Um

1:41:45Communities, but I mean we have a lot of new communities

1:41:48Waiting for amenities

1:41:50um

1:41:51So is that the charts that we're going to get in in that budget board?

1:41:56Uh through the mayor to counselor downer. Yes, that is no part of so because I asked about that the other day

1:42:01Um, the other thing just sort of this is sort of a more bigger picture thing around affordability

1:42:07so we're looking at affordability as

1:42:10as the mayor directive of four percent, which which was fine

1:42:15But I mean there's there's other things around affordability for people in the community that that

1:42:23I wonder has been given consideration

1:42:26um, when we look at things like

1:42:29um

1:42:31Why I could take trans and parks and recs. So transit a good transit system is

1:42:37Uh an affordability issue

1:42:40Uh for many people it's you know, it's an environmental issue as well

1:42:43But it's an affordability issue as well. And and so back

1:42:47I understand we're still doing 10 years

1:42:49But a lot of that's being implemented in the last four now, right?

1:42:53So so have we taken into account and also when you look at parks and rec

1:42:58um amenity amenities are important for

1:43:03Families who are struggling they can't afford to put their children into programs like hockey that is very expensive or baseball

1:43:11a lot of those and to be able to just go to the park and

1:43:15um or do things that are

1:43:17Um

1:43:19More affordable for families

1:43:23Have those types of things been to take it into account in this rather than the four percent

1:43:31I can start and then I can let others jump in but uh through the mayor to counselor downer

1:43:36I would say that I think that they have been taken into account. Um through this

1:43:42transit has continued to be prioritized for example in this update

1:43:47And we've really tried to take a balanced approach to the deferrals

1:43:50And so sometimes that means that capital projects are deferred out for amenities are deferred out later in the plan

1:43:57but as as uh, I showed on that program of work slide

1:44:02The actual proportion for each program of work is very similar to what it was last year

1:44:07So we have tried to preserve

1:44:10To the extent possible that complete community approach and that affordability approach

1:44:16recognizing the things that you have just mentioned

1:44:21so

1:44:26No, that that was

1:44:28What i'm hearing is that you've tried to take that into an account with the transit. It's still within

1:44:34The 10 years, but did we not put the transit over 12 years last year?

1:44:4013

1:44:41So through the mayor to counselor downer so everything within the transit

1:44:46Uh the future ready action plan for transit is still in but there are some that have been shifted out

1:44:51So sort of one to three years

1:44:54So um, we can provide you that level of detail, but everything nothing has been

1:44:58Removed, um, but things were stretched out over uh into future years. Okay

1:45:05the other thing um

1:45:08Is around the the items that have been deferred beyond 20 years or beyond the 10 years

1:45:15Um, so I noticed in the binder that it describes some of them

1:45:19Um up until the 10 years but not sort of be on that

1:45:23So if I think of the pickleball courts because that's who I'm going to hear from a lot of too

1:45:28I mean they've been advocating for and it's one of the fastest growing sports. Um

1:45:34And now that new pickleball court is beyond the 10 years

1:45:37So how long beyond the 10 years like we're are we going to when you bring back the new

1:45:44implementation plans

1:45:47Um, are we gonna am I going to be able to see how beyond far beyond 10 years something is or

1:45:54Or the community is it's to me. It's more about transparency with the community who have been advocating

1:45:59And engaged in many of these master plans

1:46:04So again, I can start on this and but I would say the level of

1:46:09Specificity in terms of what year things will happen in beyond that 10 year plan is not well developed at this time

1:46:16So I think the pickleball

1:46:18um

1:46:19New court has been shifted out to 2037 at this time, but that might

1:46:25Change, um depending on uh future budget multi-year budget cycles when we are focused more on the specific years and that in that

1:46:34Longer term plan

1:46:37Yeah, so I mean that's the kind of transparency

1:46:39I think we need because because I said there is a lot of

1:46:44Sports groups and organizations that have advocated for many of these things

1:46:49trail groups and and you know it

1:46:52And we we sort of created priorities within those plans with our community

1:46:58And so it's not like I understand the need to to move these out because we can't do everything at once

1:47:03but I I also

1:47:05am concerned about people finding out about these things after

1:47:09after the budget um and then you know

1:47:14So the more transparency we have now the the better is my sense so

1:47:20um

1:47:21I will need to contact to pickle people

1:47:23But there's a lot of people too that that need to

1:47:26Understand that and I'm not quite sure how we get that

1:47:30Um out those messages out there about how these plans have been impacted

1:47:39Thank you. Uh Gibson then or work

1:47:41Thank you through you mr. Mayor. I'm I'm going to admit so many of my questions are turning into um

1:47:48comments

1:47:49So I I have to pause I would love to pose questions to staff

1:47:54As if to get the comment I want but I'm going to hold off

1:47:58Because I I do like where this conversation is going and I do like the presentation from staff

1:48:03but a lot of my comments are

1:48:06Affirmation of what's been said so I'll wait till the end of the day

1:48:09Okay

1:48:10Thank you. Uh or work and then uh karan

1:48:14Thanks, mayor guthrie. I got a binder full of sticky notes, but I'll try and hone it down. I'll save that for the budget board

1:48:20I have a question around process. So through you mayor guthrie to staff

1:48:24This doesn't feel good to anybody, right? Like we love the master plans

1:48:28We want the tree canopy you want the tree we want all this stuff and so this is

1:48:31I'm sure it was very difficult for you to look at all the capital projects and then scale them back and bring these recommendations

1:48:37um, so so we don't nobody loves a reduction and the community won't either

1:48:44So I'm wondering going forward when we do master plans

1:48:49Or when we look at level of service work

1:48:51Will they be done in light of what is affordable affordable in the next 10 years?

1:48:57It's a challenge for me personally. I can't speak for my colleagues is this master plan comes and it's our best professional advice

1:49:04And we want this, you know best in class

1:49:08understandably

1:49:10And then we don't want to vote down a master plan that has had all that work put into it

1:49:16But then we see the collision so last year 690 million dollars were pushed out

1:49:21And this year we're seeing some additional reductions in capital. Are we changing?

1:49:26How we are making these capital plans going forward to have a constraint

1:49:31So I have an economics background when we're having the conversations. Do we add in that economic constraint?

1:49:37so that we have

1:49:39clear expectations up front

1:49:44so through you

1:49:46Mr. Mayor to councillor roark

1:49:49Yes, I want to just say I think over the past number of years. I've heard that a lot

1:49:55through

1:49:57Even questions on engagement. Are we going on and engaging and and with kind of an

1:50:03Kind of not with a realistic

1:50:07Kind of budget framing of what we're asking for

1:50:11And so I I am interested in that councillor roark and I I would like to have more of that affordability

1:50:18understanding kind of as a baseline going into our planning cycle and our strategic planning cycle

1:50:24I don't have the answer in terms of what that exactly looks like right now, but I I hear all of those

1:50:33Concerns and and I want yes, and so my answer is yes

1:50:37We're gonna we're gonna embed that affordability and that budget lens into the planning in the future

1:50:45great

1:50:46I'm curious also

1:50:48I understand that the description and the prioritization that took place

1:50:52The end state of where we wanted to see the the key performance indicators was that we could say there's a gap here

1:50:58We're falling behind and so we're going to amp this up

1:51:01How is the budget aligned with those priority key performance indicators and is that work ongoing?

1:51:09through the mayor to councillor roark, uh, absolutely

1:51:12The the ability to demonstrate measurable progress was at the heart of the prioritization framework that you heard me speak to earlier

1:51:19and

1:51:21There are significant change in this budget that we are working through to understand

1:51:25Specifically the impact on delivery of our KPIs so that works underway right now

1:51:29obviously pending budget decisions and the ratification or adoption of

1:51:34Of this budget and we'll bring the specific details of that work to you in in uh,

1:51:39July of 2025 as part of our regular corporate performance reporting cycle

1:51:44Okay, great and through you america three. I just just a couple more

1:51:48um

1:51:50I'm curious to know whether we're also keeping in mind some contingency planning

1:51:55In the event there are changes in isip funding the availability of it in the coming years, which is a possibility

1:52:02Or there's a lot of talk among housing experts who are calling development charges attacks on housing

1:52:09And there seems to be a lot of pressure there that if cities would just reduce their dc's somehow magically housing prices would come down

1:52:16We know that's not true

1:52:18But I see a lot of pressure in you know newspaper articles on social media, etc from experts

1:52:24Who are who are saying that so exactly? Yeah

1:52:28so um

1:52:30I know he's wrong, but you see it in the media and people are buying it so

1:52:35So do we have some contingency planning? Do you have

1:52:39Can you go down that list right? It's now you have an an

1:52:43An ordinal list a priority list of a thousand projects

1:52:47And do we have contingency planning in the event that both of those sources of significant funding could be reduced?

1:52:56Through the mayor, I'll start on this one again. Um, so

1:53:00in turn development charges are obviously a very important

1:53:04revenue stream for our growth related capital costs and if there were significant changes made to those then we would have to revisit our

1:53:12Capacity and ability to execute the capital plan and we do have a prioritized list that we would work from to do that

1:53:20um, and the other thing I would say is there is a report that will be going into morrow that has outlined

1:53:28Sort of our thinking and position on the development charge

1:53:33Conversation that is out there and why we are recommending staying the course at this time on the provincial tool or the tool that the

1:53:41province has provided to municipalities for

1:53:44growth related capital funding

1:53:47it's

1:53:48We don't have another alternative at this time. I think there's a space for a conversation on that

1:53:54But it has to include a conversation on who does pay for that

1:53:59Instead of development charges. If not that funding source

1:54:03Happy to have anyone else

1:54:05add to that

1:54:09Maybe just uh, just to add mr. Mayor uh to councillor roark's question in terms of other contingency plans

1:54:17um, I would say that

1:54:19this

1:54:20Like the budget process is not one that we're just it's a set it and we don't come back to it

1:54:26I think there's a lot of opportunity to continue to monitor and and react and revise

1:54:32Depending on what happens. So we talked a lot in the presentation about the contingency

1:54:37We've left in our debt capacity in the in the instance. We need to kind of do more in that space

1:54:43And then also like we're very aware and and miss sales may want to speak about the ongoing kind of uh

1:54:50grant landscape and

1:54:52And how we're trying to be as reactive as possible understanding that you know, there's federal transit grant that's been

1:54:59discussed and

1:55:00And what that could do to maybe help us even accelerate or do some different things

1:55:05Depending on uh, what that grant may turn out to be just as an example

1:55:10So I would say like we are actively trying to

1:55:13Access funding where we can and that will shift the future and it would also then

1:55:19On the on the alternative if funding is removed

1:55:22Then we'll have to be back in front of you in terms of what that real impact is

1:55:26We don't have contingency planning to be able to address everything

1:55:32Sure and um through the mayor, I will only add that uh, we certainly understand that the grant landscape is unstable right now

1:55:39And we've started talking about other funding programs that don't look like grants that are starting to replace some of the money that

1:55:47Municipalities used to receive through dc's so it's become much more complicated for us

1:55:52On the federal side, I will say icip has been tremendous to understand that municipalities post covet have a different financial reality

1:56:00And we've had a very open dialogue with them as we've had to rescale and rescope some of our programs to meet affordability targets

1:56:07So that's working very well with existing longer term funding programs that we have

1:56:12Um with the provincial side

1:56:15It it is more unstable and a little more uncertain as programs are announced like some of the housing enabling infrastructure programs

1:56:22Uh that that are important to the city to help us realize our capital projects

1:56:26And uh and no stone goes unturned when those programs become available

1:56:31We're certainly applying for them and working closely with finance

1:56:34And the folks in the program areas to make sure that we're putting forward the best application

1:56:38We can on behalf of the city to maximize the dollars available

1:56:41So I would say in the last 12 months

1:56:43Thinking about this as an important source of revenue for the city is very different than how we used to think about grants

1:56:49Um and certainly we are more connected than ever as we try and manage

1:56:54um

1:56:55The changing environment for uh for municipal funding programs

1:57:01So through you my gathry just um two last questions actually on the revenue side because we do love those grants

1:57:06um

1:57:08I think I've asked this question every year

1:57:11and

1:57:12usually

1:57:14I'm curious about what our outlook is on revenue generation

1:57:18Right, so we have a new rec center that's coming on board

1:57:21Are we looking at sponsorships for those rooms?

1:57:25Wellington county is a great job if you go to their facilities every room is sponsored

1:57:30Are we looking at some of those partnerships? I know we have

1:57:33A collaboration with uh, wellington catholic in terms of use of that new field gorgeous new field like

1:57:39Are we looking at clearly creatively?

1:57:42At where there are possible partnerships or sponsorships?

1:57:46um

1:57:47That we haven't tapped before

1:57:51Through the mayor to councillor work. Yes, we just actually uh through dana evans team and working with a number of other departments

1:57:56Just completed our sponsorship policy, which has been approved by the executive team

1:58:00It is more specific to event and program sponsorships, but using that sort of approved policy will now be

1:58:07looking at more specific

1:58:09Sort of those those naming right sponsorships like you're talking about

1:58:13Historically, we have had some success with for example, obviously the river run center and sleam and center

1:58:19But we haven't extended beyond that and so it's definitely something that's on our radar to be looking at

1:58:26That's great news and through you mayor go through my last question is really micro question

1:58:30So we expect that ridership to increase from conestoga college with the addition of that new route

1:58:36uh, and the ridership should increase with the youth programs and uh, and the the free day for seniors

1:58:43So how does all that ridership since the funding is contingent on the ridership do those costs offset each other?

1:58:49So we'll lose the ridership with a subsidized program, but then we should increase the grant right?

1:58:56No, sorry. I will start and then colleen might want to add

1:59:00But we have through the mayor we have budgeted for additional revenue related to that ridership in addition to the expenses

1:59:08Great. Thanks. Oh what shanna said

1:59:13Our karan and gibson

1:59:15Thank you. Uh through you mr. Mayor. I'm picking up where off where uh, counselor

1:59:20Or work talked about community partnerships and sponsorships and

1:59:25One form of partnership that we do have is community benefit agreements where organizations that often rely on volunteers

1:59:33Do work that benefits the city

1:59:36And i'm thinking specifically because we've all been receiving emails about the gulf tool library that helps us meet our circular economy and

1:59:42landfill diversion

1:59:44targets

1:59:46When those programs are compromised and the roi

1:59:49To the city is compromised

1:59:51Will we be taking on some of that work because some of that work is actually related to our strategic plan?

2:00:00So through the mayor i'll start um, but somebody else may want to speak directly to the work of the gulf tool library, but certainly um in

2:00:092025 the funds for the community benefit agreements

2:00:13Was about 2.4 million dollars the full envelope

2:00:17There will be a more specific answer posted on the budget board for you

2:00:21So I would direct you all to the budget board for some more details on on the cbas for for 2025

2:00:27We did have a number of both intake and renewal requests for 2025. We were not able to to fulfill all of the intake

2:00:35But we were able to uh to

2:00:38Fulfill all of the renewals with a 2 percent increase and so that information will be posted on the budget board later this week for you

2:00:45Right I understand that I'm wondering whether there's anything

2:00:49in that portfolio

2:00:52That will have to be taken on

2:00:55through our operational budget through other departments to offset work that may

2:01:01Not be happening in the community through cbas

2:01:05Specifically the circular economy and the landfill diversion work

2:01:09Thank you and through the through the mayor to uh council coran

2:01:12So we'll be taking a look in detail. Um, some of those programs that have been taken on by the gulf tool library

2:01:18Um

2:01:19At at this point, I think we have to look at what we can take on and what we won't take on

2:01:24I think some of that work we are doing in partnership with them

2:01:27That's the kind of work that we can continue

2:01:29But I think realistically we have to expect that some of that work will not be continued

2:01:33We don't we don't have the resources and we can't afford to do it

2:01:36But I'm sorry that doesn't give you a lot of detail

2:01:38But if I can go back if you can give me a chance to take a look at

2:01:42The kind of work that they do and then we can respond back on the budget board for you great and the budget board is a fine place for that

2:01:48um the

2:01:50I know you talked a little bit about the offsetting um of

2:01:55lost dc revenue

2:01:58The the whole conversation about being made whole is that even a realistic expectation anymore?

2:02:04I mean if the answer is no the answer is no and that makes a lot of sense in what we're seeing in the budget

2:02:08But it's still being talked about and it's still a commitment that is

2:02:12You know

2:02:13Verbally out there that we will be made whole for that work that is offsetting dc revenue

2:02:19Is is that realistic at all?

2:02:23Through the marida counselor coran. I think certainly amo and fcm both have significant

2:02:29Number one priority advocacy programs, but they are different. Um amo is looking more

2:02:35um

2:02:36More at replacing some of the dc revenue that's been lost to municipalities specific to ontario's situation

2:02:41Whereas fcm's campaign is more broad and is actually looking at municipal service delivery as a whole across the country

2:02:48and uh and where some provinces provide

2:02:51more services or different services

2:02:53Um than others who may provide those services at the provincial level

2:02:58And so I think both of those programs are important for the city. Um

2:03:02As we continue to in almost every advocacy we meeting

2:03:06That we have talk about this, but it it is fair to say that it's not something that's getting a lot of traction

2:03:13Um with either level of government at this point

2:03:15But it is a priority for every municipality that I speak to uh and every organization that we belong to

2:03:23Thanks, that's what I suspected that it's still being talked about in in in municipalities across the province

2:03:30Uh two more questions. Um, mr. Gaiman slide talked about a 17 year gap a 17 year difference between

2:03:39Tax and non tax supported asset renewal funding. Not sure I fully understood what that means and I just wonder if you could

2:03:48Sure live deeper on that through the mayor. I'll start on that so the um

2:03:54increases to

2:03:56infrastructure renewal funding for tax support

2:03:59Are separate from the increases to the each of the utility rate supported services has their own

2:04:06capital funding

2:04:09Allocation within them and so the projection for when we get to sustainability for those rate supported services

2:04:16Is a lot sooner

2:04:18Then the projection for the tax supported services. So the assumptions for the increases that we've got on the tax side

2:04:24are much lower

2:04:26Than than this assumptions on the rate supported side to stay within that affordability target and that

2:04:32That's sort of baseline assumption

2:04:35For the coming years and now we will be that is part of we want to look at and bring back to you as part of that

2:04:42sustainability analysis as to whether

2:04:45That needs to be adjusted in the future

2:04:49Okay, thanks that makes a bit more sense

2:04:51And my last question is more

2:04:54I'd like to know the scope of work that might be involved with staff when I ask this question, but

2:05:00You know, I've been on council long enough to see a number of projects

2:05:05Added introduced through a master plan

2:05:09deferred

2:05:10Readded put beyond the 10-year capital plan

2:05:14Readded redeferred re added redeferred

2:05:17Um, so for example trail and bridge connections, I mean some of I've seen some projects that were introduced in the early

2:05:242000s that have been added and now have been

2:05:28re-deferred

2:05:29Is there any way?

2:05:31Uh through technology, uh through the the way you your budget

2:05:36technology works

2:05:37Where we can see when a capital project was first added to a budget

2:05:43And at what points in time they were removed re added removed re added

2:05:49And what the original cost was in 2001 2005 2012

2:05:55And what the projected cost is now because I think I think what's really important for me in this budget

2:06:02Deliberation is I need to know what the cost of deferral is as much as I need to know what the 2025

2:06:09tax increases

2:06:11Because the cost of deferral is often more expensive in the long run the payout or pay later kind of philosophy

2:06:17But I just don't understand the scope of work that staff would need to do

2:06:22To give me that information. Is it is is it, you know another 40 hours of staff work to

2:06:29to go project line by project line to show me the

2:06:33um the continuum of where projects have

2:06:37Been introduced and deferred over time

2:06:40um, so uh through through the mayor, I'm gonna I'm gonna take this one. Um, that would be a

2:06:47significant amount of work like significant. I don't even

2:06:51believe we would have the capacity to

2:06:53attempt that

2:06:55um, we don't have the systems that would support that

2:06:59easily at all

2:07:02and over time projects

2:07:05are

2:07:06projects evolve also like what um, what was planned

2:07:1110 years ago

2:07:12With more information, you know, I'm just just even thinking like from an engineering perspective

2:07:17Like there's there's a lot that we find out through design and through planning that that shifts where we're headed and so

2:07:25It's also not even apples to apples. I would say in terms of being able to go backwards and do that work

2:07:30um, and so so yeah, I would say I I that's not something that

2:07:36staff will be able to to deliver

2:07:38Okay, and I I expected that answer because in my mind

2:07:41I started looking through old budget documents to try to find specific projects and so I just wondered if you had the technology to

2:07:47Do that. So thanks for being honest about that

2:07:50If I had a specific project that I wanted to follow the timeline could I could could one project line be?

2:07:57um

2:08:00Be provided if I had a specific project line just to to illustrate that

2:08:05um, continuum

2:08:06Especially a project that's still in our budget. This isn't something that's evolved over time and is no longer relevant

2:08:12These are projects that are actually the same

2:08:16I would give you through the through the mayor. I'd say on a micro level

2:08:20We can attempt that so I would say absolutely like please connect with staff and we will do our best in a in a narrowed

2:08:27view of of one project to see what could be done

2:08:30But we definitely will not have the capacity for the entirety of the budget. Okay. I appreciate it and I won't ask that again

2:08:38um, one last question

2:08:40um, and again the budget board is fine, uh for the answer is

2:08:45I saw a slide uh regarding frontline emergency services that we would need an additional

2:08:51resources

2:08:52Uh to replace or to support

2:08:55um, our frontline teams when the safe injection site is closed

2:09:00Is the province going to be funding that in any way or that is our responsibility again to deliver

2:09:06services that are truly being downloaded to us

2:09:10by a provincial decision

2:09:12So through the mayor to council crown certainly the report that we brought to the joint social services and land ambulance committee one requested

2:09:18Stated that we don't know yet what the impact will be and we can't predict that

2:09:23We as a service, uh, it is our our responsibility and our commitment to respond to

2:09:29Any circumstances in the community that change but we don't yet have any data to say whether or not we think will be a change in

2:09:37Resourcing level. Um, we're coming back to jss lac with the optimal resource deployment

2:09:43for paramedics uh in november

2:09:45Um, but I would say that it is an evolving process and that we're constantly reevaluating

2:09:50But at this point we don't have any data to uh to be able to speak to uh the impact

2:09:56Okay

2:10:01Thank you. Sorry, kate and uh kate and then and then gibson

2:10:09Thank you through you mr. Mayor

2:10:11Um, so I was just wondering how does the transportation and roads sidewalk cut off affect our aod a goal

2:10:19obligations and the upcoming accessible canada act target goals for 2040

2:10:24For completion given that we're moving from like a 10 year timeline to a 30 year timeline

2:10:33through the mayor to to council gaden. I think what

2:10:37What we're trying to do is do as many of these projects as we can

2:10:40At a pace that is is reasonable and affordable balancing against everything else that that is in the budget

2:10:45With respect to your specific question

2:10:46I think we'd have to take take that away and maybe provide you a bit more of a detailed response on the budget board in terms of

2:10:52how we're approaching

2:10:53um meeting that future

2:10:55regulation

2:10:57Thanks, um and through the mayor this may also be a kind of budget board

2:11:01sort of question, but uh, I was just wondering if we had a fulsome list of the

2:11:05accessibility cuts

2:11:07such as sensory rooms older adult strategy and pedestrian crossings things that can be kind of bucketed together as accessibility

2:11:17Through the through the mayor to council kate and yes, we'll get that list for for you

2:11:22Thank you. Um similarly, I was wondering if we had

2:11:26Most of my questions are impact statement risks and issues and things like that. So I was wondering about our vision zero goals

2:11:33and um

2:11:35various departmental budget

2:11:37kind of impacts and I was I heard earlier that you had a

2:11:42Uh request that you're going to be putting up on the budget board and I was wondering is that going to cover

2:11:46Like the line by line cuts in terms of risks and issues or is that specific to one category?

2:11:56So through the mayor to council kate and that list would be uh

2:12:01Based on each service delivery master plan. It would not have a detailed list of each project. Um

2:12:08It would be an update on the overall implementation timeline for the master plan

2:12:13Compared with what was presented. Uh when the master plan was approved

2:12:18Is it possible to get a risks and issues impact list?

2:12:23for cuts like they don't have to be necessarily that granular but

2:12:28um

2:12:30kind of

2:12:32different larger categories of things because that's sort of where

2:12:35I need to make my decisions from

2:12:40Um, so so I'm going to jump in here and I'm just going to say that uh in terms of the the line by line

2:12:46Um changes uh in the email that was sent out uh to council. There was a

2:12:51a document that um

2:12:55Was the summary of of capital project changes over the 10 years. I would say that's that's the line by line

2:13:02Um staff across the organization

2:13:05Experts in each of the areas went through and did that risk assessment in terms of the the prioritization

2:13:12Lens and that the criteria that was presented in the earlier

2:13:18by miss sales in the presentation

2:13:20And and to be able to provide you with a line by line for every project. That is not something that is prepared right now

2:13:28that was done in collaboration with

2:13:31I want to like 25 50 staff that are experts in their in their discipline in terms of

2:13:38Ranking the the projects and so I would say that the best place to start um counselor katin would be on that

2:13:46that line by line capital plan and then if there's specific questions

2:13:51um

2:13:52to to reach out to the departments to the department leaders

2:13:56Uh to to get that comfort that you're looking for

2:14:00I will just say from an executive level position all of our dcaos and all of the department heads had

2:14:08Using that that prioritization criteria. That is what we used in order to

2:14:13Rank and you can see the ranking in the materials

2:14:17And so I I would just you know, that would be where I would say I would offer you to start

2:14:23And I would be interested if you believe that

2:14:26um the

2:14:27prioritization criteria like from a governance level as well if there would be something there that you would like change in the future

2:14:33but um, but this that was the guidance and that was the framework we used going through a

2:14:40significant amount of projects and and programs

2:14:44Uh through through six months of work. So

2:14:48Hopefully that helps

2:14:49Thanks through the mayor. I'm not questioning your prioritization. I'm just looking for transparency on what the outcomes would be for those things so that I can

2:14:58communicate that and understand the impacts of them

2:15:01um, I was also wondering about if we had a

2:15:05list of the affordability measures that are removed from the budget like the a coc member fee programs in the kids in sports

2:15:13Uh such as uh counselor downer brought up

2:15:19Through the mayor all of that can be found in the operating budget update document on the website

2:15:25Okay, thank you

2:15:29Thank you counselor. Uh Gibson, please

2:15:32Thank you very much. Mr. Mayor. I again I have comments, but I'm going to try and pose some of these as questions because I think it's important

2:15:39So this is my 11th budget

2:15:42Really appreciate the work that goes into this every year a line that always appears in our budget

2:15:47Up until this year and I'm going to ask staff if it still exists

2:15:52We increase taxation. We increase the budget and it seems like every year in our budget. There's the same line

2:16:00Staff flag considerable planned and unfunded capital investments that still need to be funded

2:16:05So we we we do this to ourselves a little bit with master planning. We go out. We're an ambitious group

2:16:11We set targets. We set these ambitious goals

2:16:14Infrastructure funding sustainable funding new new roads new rec centers

2:16:18And then the reality kind of hits the road at the budget and it's always asterisked with one line

2:16:23Not all of this is funded

2:16:25And it's always a struggle for me to sort of press yes or no on the budget because everything we've said isn't funded yet

2:16:31So does that line appear?

2:16:33In this budget or am I taking your am I taking your comments about being fully funded and realistic?

2:16:40uh

2:16:41Am I taking those as truth and gospel this year that we are presenting a realistic and fully funded capital budget

2:16:48With without these massive unexplained or unfunded projects in our capital budget

2:16:56So through the mayor to councillor Gibson

2:16:58Uh, the asterisk is not there this year. We are presenting all the capital projects that are in the capital budget are funded

2:17:07within those reserve strategies that we presented

2:17:10That doesn't mean that all of the master plan work that was approved is included in those capital projects

2:17:15Some of that will be deferred and implemented over a longer timeline

2:17:20I appreciate that that's the that's the kind of transparency that I can stand on when we when we present a budget to the folks

2:17:26Saying yeah, all you like in the recent years everyone I think all of us will probably sit there and say yeah your project's in there

2:17:31Your project's in there

2:17:32But we don't want to tell them that it's not necessarily funded. So this is a realistic

2:17:37Outlook for the next 10 years. I appreciate that I'm going to ask a word specific question now, mr

2:17:41Mayor I could put it on the budget board, but I ask it every year. So I figured it was good to for staff to have a chance

2:17:46prioritizing infrastructure projects that unlock housing of that I love that comment. I love that prioritization

2:17:53I've noticed that

2:17:55My favorite infrastructure project in the east end york road has reached victoria road now. We are almost there

2:18:01So I guess my question is

2:18:03that project to

2:18:06Watson road the last stretch of york road that is tied to unlocking housing

2:18:11I believe at the starwood and Watson intersection

2:18:14Can I just ask for a quick commentary from staff on how that's being prioritized in the progress that we're making?

2:18:19So through the mayor to council gibson. Yes, absolutely that work is directly connected to enabling growth

2:18:24It's also infrastructure and new work at the same time. So it ranks quite high in our prioritization

2:18:28The remainder of the work is broken into three stages

2:18:32So that final stretch the first stage is already funded

2:18:35The next two stages are shown in the forecast under project number pn 0 1 1 0

2:18:41That's great news. Thank you

2:18:44Thank you downer than busitil. Uh, just one more that too is a little specific

2:18:49But um interests a lot of people in throughout the city is the elimination of the termite management program

2:18:56Are we at a point in success in that program that?

2:19:00That can be eliminated if somebody could sort of speak to that

2:19:04I mean, that's uh

2:19:06That's been a very successful program. My understanding is and I just want to make sure that we don't

2:19:12Uh stopping it now doesn't create problems later on

2:19:16Through the through the chair to council downer. So it has been a successful program. So

2:19:22we have uh been able to manage the termite problem

2:19:27In gwell to the point now where

2:19:29Um, we probably don't need to provide a program in-house

2:19:34To continue to manage so a little bit of a victim of our own of our own success

2:19:37But we do still provide a support on our website for resources for those who are still experiencing

2:19:44Termites so that they um have resources so they know where to go where they can get some help to manage manage the issue

2:19:50Okay, so you say and we don't need to provide it in-house

2:19:53But if a point comes forward in the next couple of years, we'd be doing outsourcing is that

2:20:01Through the mayor to council downer there are other

2:20:06Other businesses within the city who provide that service so

2:20:10We and looking at where we've come so far and what we're projecting going forward

2:20:15That's not something that as a city we would need to provide it. Okay

2:20:20Thanks, busiatil then alt please

2:20:23Thank you. And through the mayor. I have a clarification just about the um transit pilot projects

2:20:31Just a clarification first and the budget binder page two

2:20:34It says it ends at 4 p.m. And page 19 says 5 p.m. Just uh, which one it is and then I have a follow-up

2:20:42Through the mayor to council puse until the original direction from mayor guthrie

2:20:46In his strong mayor direction about budget asked us to look at it starting at 4 p.m

2:20:49But the staff recommendation back that was ultimately included in the budget is at 5 p.m

2:20:54Because of wanting to avoid overlap with an impact on on schools

2:20:59And 4 p.m. Was still a bit early and so we did make the recommendation and what was included in

2:21:05In the budget was starting at 5 p.m.

2:21:08Thank you. And I think you answered my second question

2:21:10So this was a strong mayor direction because I don't remember this pilot at council

2:21:15Through the mayor or to council puse until yes, it was included in

2:21:20I believe strong mayor direction. I can't remember the number the budget one

2:21:24Where the direction was given to staff this was included as something that we were to report back on

2:21:30Thank you. And my other question about the affordable bus pass

2:21:32I'll put on the budget board and then I did have a question just about

2:21:37capital as well and I think some other counselors caron and

2:21:41Orark talked about partnerships and sponsorships and when I look at things like playground equipment

2:21:46Whether or not the process around affordability partnerships and so on have included other public entities that are also building

2:21:54playgrounds. I know we have reciprocal agreements for

2:21:59Cutting grass and things like that

2:22:00But if you could other than the structure of the south end, you know in the wellington catholic

2:22:06Just take that in mind because I know there are developments that are capital developments that are happening in that side of the public

2:22:14In in the city as well to to try to bring some some of these projects

2:22:19I guess forward that might be delayed

2:22:23Through the mayor certainly we can take that away and and follow up on that

2:22:29Thank you council. I'm so sorry. No, thank you. And I think that's it. Yeah, there's not put on the board. Okay

2:22:34Thank you councillor Allt

2:22:36Thank you very much mayor guthrie

2:22:38Through you two staff

2:22:41In hearing discussion of the correlation between strategic plan and budget. I'm struggling a bit

2:22:47And the reason for that is it strikes me that

2:22:52In the immediate moment we have reversed the equation

2:22:56And that what we are now doing is we are establishing a budget and then trying to fit some formulation

2:23:02Of a strategic plan into that which strikes me as being

2:23:06Um, the wrong way to go, especially if we consider that the job is community building

2:23:11I even see that in some senses we've we've lost the notion of good better best

2:23:16And really what we are doing at this point in time at least is holding the line on costs rather than assessing

2:23:24What is in the best interests of the community? I was wondering if staff could please comment on that

2:23:31Through the mayor and council are all certainly on the sequencing

2:23:34The strategic plan still is an important part of the budget that's presented to you and was part of the prioritization

2:23:40Criteria of work that was brought forward

2:23:42Admittedly though there are parts of the strategic plan that will need to slow and could potentially extend into a future year strategic plan

2:23:49Should that be the direction of council?

2:23:51um

2:23:52It was mentioned earlier some work about master plans and uh and ceo baker certainly talked about the work that we intend to do

2:23:59related to master plans, but I can let you know that our team is also looking at the sequencing

2:24:04Of the strategic plan the multi-year budget and all of those master plans right now to bring forward

2:24:10A longer term much much longer term plan that does sort of put the cart and the horse in the right order going forward

2:24:16So that is some work that's underway obviously with multi-year strategic plan

2:24:21Master plans

2:24:22It's going to take us many years to re-sequence things that we think are out of order

2:24:26But that is work that is underway and future state. We really hope to get to

2:24:31So will we need to be reviewing?

2:24:34What are the priorities in our current strategic plan as a consequence of of this budget and budgets going forward?

2:24:43um, so I'm going to jump in and just say uh to councillor all that no

2:24:46We're not planning on on going back and and revisiting the strategic plan

2:24:51But what we do annually is update our performance reporting and the kpis towards what we're reaching for

2:24:58I did want to also just acknowledge that we always said that the budget is setting the pace for how quickly

2:25:04We'd be able to reach the strategic plan goals and that vision and I think that's what you're seeing here

2:25:10Is that that being demonstrated quite clearly that um that we we are it's a cycle, right?

2:25:18It's the strat plan and informing the budget and kind of that performance reporting cycle that we're

2:25:24We're starting to see as we mature in that space

2:25:27So I actually think it's it's really good that we're starting to see that these interplay and as we grow

2:25:33um

2:25:34And the last thing I just wanted to say is um just in respect to the change that we're seeing

2:25:38I think we have to acknowledge that the last five years we had co vid

2:25:43We had a lot of change. We have new official plan targets

2:25:47We've done so much work in the master planning space. So we have to understand what we need in our services

2:25:53Putting that all into the budget over the last year and now getting to a place here where we can

2:25:57We have an affordable and achievable place to start from we can continue to have conversations

2:26:03But I feel like we reached the end of like a lot of work over many years to get us to today's

2:26:09conversation and so um

2:26:11So I just wanted to say that that in recognition of yes, there has been change

2:26:15But they're you know economically and in our environment. There's been a lot of change that we've we've been responding to

2:26:22Um, and I think that now, you know, we've got a really good place. It's funded and and that will help us have future conversations

2:26:30A bit of a tough question to just follow up on that. Uh, I I appreciate and respect that comment

2:26:35I think we're still in some senses

2:26:38Putting much of the strategic plan on hold, but and this relates to that

2:26:42Has staff factored in any potential for more surprises from the provincial government like the

2:26:49Development charges modifications that we've seen over the last two years and going into next year

2:26:57Sorry, I didn't hear the answer

2:27:00Uh through the mayor, uh, we have not factored in any potential changes to

2:27:07To development charges into the plan at this time

2:27:10But like like uh, cao baker did say earlier

2:27:13What we have done is we've reserved debt capacity to support growth

2:27:19If development charges leg collections to support that program of work

2:27:24Thank you, and that actually raises another question when I when I looked at the the 10 year

2:27:29Reserves that you had mentioned. I think it was 240 million dollars

2:27:33That comes to the equivalent of about 10 percent of our operating budget per year

2:27:38Will that be affected by what you've just stated?

2:27:42Will we be seeing a draw on that that will then increase our our lost

2:27:49The the money taken from those those reserves

2:27:56Through the mayor. I'm sorry counselor out. Could you repeat that question? Yeah, um, you had mentioned earlier get to my notes

2:28:03That um

2:28:06Just can you have a second

2:28:13Or the contingency reserves

2:28:15That there was 240 million dollars less for tax supported budget over 10 years

2:28:20Is there the possibility that we are going to see even more than 240 million over next 10 years as a consequence of

2:28:27The things that we haven't planned for that are that are huge coming from say the provincial government

2:28:34Thank you through the mayor. So that 240 million dollar

2:28:38Reduction in funding is into the tax supported reserves is

2:28:43directly the results of the assumptions that we have built into the capital plan or to the sorry the operating budget

2:28:50budget for increases in capital funding and so that is what that

2:28:55240 million was referring to and so

2:28:59There is a possibility that we would want to reduce it less than that over time

2:29:04And so that's part of that sustainability analysis that we will bring back to council in the future

2:29:10Thank you very much. Thank you. That's uh, that's it for questions. And so thank you

2:29:18I don't

2:29:19Really think I want to do like comments now. I mean, this is more like a workshop. It's a presentation. We've

2:29:25We know we can go to the budget board and such like that. So

2:29:28um, I think what we'll do is we'll uh,

2:29:31We'll kind of cut it off here

2:29:33um

2:29:35In the agenda coming up. We do have

2:29:38Uh, a moment to move in camera

2:29:41Uh, as well

2:29:43Um, but what we'll do now is we'll take um a break that's kind of been planned anyways

2:29:50um

2:29:51And I do though want to just kind of

2:29:54Look around the room to my colleagues and on the screen

2:29:57Uh, we have a lot of like a lot of general managers that are here

2:30:02um

2:30:03And I just don't

2:30:05My personal opinion is that a lot of them might not even need to be here at all for the in-camera discussions that might be able to be

2:30:13um, accomplished with sort of the main executive and general manager team that's been

2:30:18Interacting with us to date

2:30:20So

2:30:21Can I just get a temperature of my colleagues to say that it's probably okay for us to let

2:30:26Let our our friends and staff go and they don't need to wait around for the break

2:30:30Wait around for the entirety of the closed meeting and then come back out and then there's like there's nothing for them

2:30:35Anyways, uh, because we're going to adjourn after the closed meeting anyways. So is it okay if maybe I

2:30:41I thank you. I'm seeing lots of heads not I'll leave it to maybe um the executive team and others to maybe direct

2:30:48Uh, some of the staff that might need to stay or they can be dismissed. Uh, so they're they're not sitting around

2:30:54I think that's helpful for that for them

2:30:57Thank you for being here though. And what I'll do is I'll take a break right now to the clerk. What how long do you think?

2:31:04A half an hour, okay. All right. Um, and so what we'll do is we'll come back here

2:31:11We'll come back here at 12

2:31:1315 just to move the motion to go in camera than at that time. Okay

2:31:17Sorry, just before I do that though. Councillor Gibson. I saw your hand. Thank you through mr. Really quick just a question of process

2:31:24You said we're going to go into closed, but then we're going to adjourn the meeting

2:31:27Are we going to have commentary on the budget?

2:31:30Because this was commentary or this was questions, correct? So are you going to give us a chance to uh speak our mind on the budget?

2:31:37Well, yeah, we're just receiving information as a presentation. Do you have like a high level comment about?

2:31:43That's why I deferred my comments

2:31:46Okay, uh, okay, I'll allow it. I bet I I also don't want to have like 13 of us do it either

2:31:52You know, I mean it's open everyone if you start it gets open to everybody, but um, but so go go ahead and then I will take

2:31:58I can wait if you want to do it later. It's fine. No, no, we're not going to do it later

2:32:02So this is your this is your moment. Go ahead. Okay. Thanks. I'll keep it brief

2:32:05Uh, I I asked a few of my questions and got some of the comments. I wanted back anyway, but um, I just wanted to reiterate

2:32:12That's comment that I've made for years. Um

2:32:16We have spent the last hundred plus years building the infrastructure of our city

2:32:21um

2:32:21and getting it to the point where it is

2:32:24And asking the current generation of homeowner and business owner in the city to pay for the replacement costs

2:32:29Of all of that infrastructure in one generation in one 10 15 year envelope. I've always held it as

2:32:35Is an impossibility. It's just unsustainable. It's unaffordable. I just wanted to acknowledge

2:32:41the work the staff have done

2:32:43I know that at times I've taken my lashes during budget because I pushed back on the infrastructure level and the speed at which we're pushing it

2:32:50But last year we slowed it down from 10 years

2:32:52I believe to 15 years and then this year it looks like we are

2:32:55Stretching that out to 2046 as well. So we're telling our residents

2:33:00That we're going from 2017 to 2046 and we're looking to build that affordability and sustainable funding over that period of time now

2:33:07I'm much more comfortable where we are 10 years almost seven years into the infrastructure

2:33:13Sustainable funding than I was at the beginning. So thank you to staff and I do appreciate that it's been at times a

2:33:20Push and pull on this file, but I do like where the budget has set us now to 2046 on the sustainable path

2:33:27I think that's really important

2:33:29For the obviously the homeowner business owners that are footing the bill in this generation

2:33:35To make that to make that affordability happen

2:33:38Um, thank you for the realistic. I liked some of the commentary that I heard from staff

2:33:43You use the term

2:33:45The 10 year capital forecast is built on conservative

2:33:49Year over year increases. I'm going to insert the word affordable year over year increases in there because that's the politician in me

2:33:55And uh, lastly, it's fully funded and realistic was the comments that I heard from staff say today

2:34:01And I do appreciate that tone. I think the community will appreciate that tone as well because it is realistic. There are there are less

2:34:08um

2:34:09promises being made on what could be and then with the asterisks of

2:34:13By the way, we don't have the money to do it. I think that this is uh, although

2:34:16It's not going to be easy for some people in the public to not see their project in the next 10 years

2:34:21I think it's also an honest moment for us to say but this is realistic

2:34:25And I think that that's something that I look forward to conversing with the public on. I appreciate it. Thank you

2:34:31Thank you

2:34:33Okay, I will take the thank you. I'll take the break then

2:34:36Um, and back here, uh, I'm going to push it to uh, uh 12 20

2:34:40Um

2:34:42Executive team and others can enter mix with staff to let them go if they uh, if they need to then thank and thank you for

2:34:48Those that have been here and when we come back here, all we'll do is we'll go in camera and then when we come back out

2:34:54I'll do the summary and then we'll adjourn. Okay, so, uh, thank you so much for for sticking with us

3:07:05Okay, I'll call the meeting back to order especially for those online. Just to let you know, we're going to kick back up

3:07:10Uh, and so, um, just before we go into closed, um, is there any disclosure of pecuniary interest or any general nature thereof for any of the closed

3:07:23items

3:07:25Hearing and seeing none

3:07:28And so we're looking to move into closed

3:07:32under the title mayors draft 20 25 budget update section two three nine

3:07:372d of the municipal act regarding labor relations or employee negotiations

3:07:44And I just need a mover for that, please uh, alton galler will do that for us

3:07:50Is there any questions on that?

3:07:52No, I'll call the vote is anybody against

3:07:55No, okay, so for those watching online or here in the room, uh, we will go into closed and when we're done

3:08:01We'll come back out and I'll do the summary as usual before we adjourn. Thank you

3:47:27Okay, everyone. I'd like to just call the meeting back to order

3:47:31And uh as uh

3:47:35As we just did just maybe half an hour ago. We went into closed session

3:47:39And and council received information, but no direction

3:47:43Was given at all

3:47:45So we were just receiving information. Thank you

3:47:48Um on that and I do just need actually before her tournament. I forgot we just have to refer

3:47:55All of the information to the 27th. So I need someone to move the motion for

3:48:01I'm sorry

3:48:04Through you mr. Mayor and I'm sorry for the interruption

3:48:06It's not a referral the motions that appear on the agenda today are noted. They will appear that way on the 27th

3:48:11There's no need to refer. Yeah

3:48:13Sorry, I

3:48:15I meant referring as we are sending this all of these to the 27th. Yes

3:48:21Correct. Am I saying the wrong thing through you Mr. Mayor? That's correct, but there's no motion required

3:48:25Those motions as printed here will appear on the 27th. There's no motion required. Oh, okay. So I can just do a german

3:48:31Okay, sounds good. Sounds good. All right. Um

3:48:35Then I would like to ask someone to move a german, please

3:48:38Uh goller and katyn

3:48:41And does anyone against that?

3:48:44Nobody. Okay. Thank you so much everyone. Take care. Bye. Bye