ACKNOWLEDGEMENT We respectfully acknowledge that the City of London is located on the traditional territories of the Anishinaabeg, Haudenosaunee, Lunaapeewak, and Attawandaron peoples, who have and have had longstanding relationships with the land and the region. We would like to acknowledge the many longstanding treaty relationships between Indigenous Nations and Canada. The City of London recognizes its relationships with the local First Nation communities, including Chippewas of the Thames First Nation, Oneida Nation of the Thames, and Munsee Delaware Nation. In the region, there are eight First Nation communities and a growing Indigenous urban population. The City of London values the significant historical and contemporary contributions of local First Nations as well as those First Nations, Métis and Inuit whose histories, languages, and cultures continue to influence our vibrant community. We acknowledge them and others who care for the land and its past, present, and future stewards. TABLE OF CONTENTS Message from the City Treasurer ................................................................................................. Page 1 Budget in Brief • 2020-2023 Average Annual Tax Levy Increase ................................................................. Page 2 • 2020-2023 Operating Budget Highlights............................................................................ Page 2 • 2020-2023 Capital Budget Highlights ................................................................................ Page 6 • 2020-2023 Approved Budget Average Annual Cost of Municipal Services ........................ Page 7 • 2020-2023 Approved Budget Average Daily Cost of Municipal Services ........................... Page 8 Introduction to the Tax Supported 2020-2023 Multi-Year Budget ........................................... Page 9 • Multi-Year Budgeting Background and Process ................................................................ Page 9 o Advantages of a Multi-Year Budget ....................................................................... Page 9 o Link to the 2019-2023 Strategic Plan ..................................................................... Page 9 o Annual Update Process ......................................................................................... Page 10 • Community Engagement ................................................................................................... Page 12 • Business Planning & Budgeting ........................................................................................ Page 12 • Service Reviews ............................................................................................................... Page 12 • Financial Policies and Principles ....................................................................................... Page 14 • Economic Context ............................................................................................................. Page 16 • How Does London Compare to Other Municipalities ......................................................... Page 21 • Tax Policy ......................................................................................................................... Page 22 • Assessment Growth .......................................................................................................... Page 25 The 2020-2023 Multi-Year Budget Overview ............................................................................. Page 26 • Operating Summary .......................................................................................................... Page 26 • Capital Summary .............................................................................................................. Page 31 • Service Program Summaries – Operating & Capital .......................................................... Page 38 o Corporate Summary .............................................................................................. Page 39 o Culture................................................................................................................... Page 41 o Economic Prosperity .............................................................................................. Page 48 o Environmental Services ......................................................................................... Page 54 o Parks, Recreation and Neighbourhood Services ................................................... Page 61 o Planning & Development Services ......................................................................... Page 67 o Protective Services ................................................................................................ Page 72 o Social and Health Services .................................................................................... Page 79 o Transportation Services ......................................................................................... Page 86 o Corporate, Operational and Council Services ........................................................ Page 93 o Financial Management .......................................................................................... Page 99 TABLE OF CONTENTS (continued) • Reserve and Reserve Fund Overview ............................................................................... Page 103 • Debt Overview .................................................................................................................. Page 111 Appendices Appendix A - Capital Budget Detail ................................................................................... Page 119 Appendix B - Reserves/Reserve Funds ............................................................................ Page 154 MESSAGE FROM THE CITY TREASURER Photo: City Treasurer, Anna Lisa Barbon His Worship Mayor Ed Holder, Members of London City Council, Residents of the City of London: I am pleased to present the Council approved 2020-2023 Multi-Year Budget for the City of London, which marks the second time the City has approved a four-year budget. In total, the 2020-2023 approved average annual tax levy increase is 3.9%. Developing this budget came with its own unique opportunities and challenges. These opportunities and challenges existed within the context of the changing priorities of the Provincial government, which have become evident through the 2019-2020 Provincial budget and other regulatory changes with multiple impacts to our municipality. The 2020-2023 Multi-Year Budget includes a number of components which make up the total levy: the Base Budget including Provincial Impacts, Net Levy Reductions and Additional Investments. The 2020-2023 base budget was approved with an average annual increase of 3.0%. This increase is to maintain existing service levels; a number of significant adjustments to the budget have been reflected in the base budget to help relieve pressures on the tax levy. Also included in this increase are the Provincial impacts, some of which were related to changes in cost-sharing between the Province and municipalities. Council was also presented with business cases to reduce the four-year average tax levy increase; the approved cases resulted in a 0.2% average annual net levy reduction. Additionally, Council approved 24 business cases for additional investment which represents an additional average annual tax levy increase of 1.1%. Approval of the 2020-2023 Multi-Year Budget provides funding to support the implementation of Council’s Strategic Plan. Confirmed funding allows staff to focus on priorities and deliver on projects and initiatives that have been identified through the Strategic Plan. Progress updates are provided to Council and to the community semi-annually. Civic Administration will also be providing annual updates to the Multi-Year Budget, in order to deal with emergent issues. I would like to thank staff throughout the Corporation, Agencies, Boards and Commissions for their assistance in the preparation of this budget. The Financial Planning & Policy office would like to acknowledge the efforts of staff in all of the City of London Service Areas, including Financial Business Support, Development Finance, Financial Services and Corporate Communications for all the tremendous time, effort and assistance put forth to develop the 2020-2023 Multi-Year Budget. We are also thankful to City Council for their continued support. Respectfully, Anna Lisa Barbon, CPA, CGA Managing Director, Corporate Services and City Treasurer, Chief Financial Officer Page 1 BUDGET IN BRIEF 2020-2023 AVERAGE ANNUAL TAX LEVY INCREASE 2020-2023 OPERATING BUDGET HIGHLIGHTS On March 2, 2020, Municipal Council approved the 2020-2023 Multi-Year Budget, marking the second time the City has approved a four-year budget. The 2020-2023 net base operating budget was approved with an average annual increase of 3.0%. This increase is to maintain existing service levels and also addresses a number of Provincial impacts within this Multi-Year Budget. There were several challenges in this year’s budget that included changes in provincial funding priorities, some of which included cost-sharing arrangements between the City and the Province, funding reductions for program/service delivery and reductions of future funding for expansion of services. Additionally, there were 8 Council approved business cases for net levy reduction resulting in an average annual net levy reduction of 0.2%. Council also approved 24 business cases for additional investment which