2020 Draft Budget and Business Plan - Appendix A: Decision Packages

cambridge.ca/budget

INVESTING INOUR CITYINVESTED INOUR CITIZENS

Item Program Description of Change Impact of Change

(Decrease)/ Increase on Tax

Levy Tax ImpactTax Levy Increase

Average Household

Impact $ 94,022,400 4.01% 4.01% $ 55

1 Fire ServicesReduce Fire Senior Management Training

Reduce level of training for Senior Mgt team (across various positions, different training sessions/events).

(10,000) -0.01% 4.00% 54$

2 Human Resources Reduce Recruitment AdvertisingReduction in recruitment advertising. Approximately $500- $1,000 per posting for a designated position. Usually posted to 2 - 3 sites. More selective as to which sites job postings sites will be used (will vary based on position).

(10,000) -0.01% 3.99% 54$

3 Human ResourcesReduce Employee Wellness Program Costs

Reduction in employee wellness training/activity expenses (e.g. reduce number of offers e.g. lunch and learns).

(2,000) 0.00% 3.98% 54$

4 Clerks ServicesReduce Planning Advertisements

As per the Planning Act, the City is required to advertise for planning notices, zone change, variances e.g. notice of public meeting. Currently, advertising through Cambridge Times as well as mail outs. Possibility of only using one or the other.

(3,000) 0.00% 3.98% 54$

5 Clerks Services Reduce Archives AdvertisementInstead of paying for ads to promote Archive events, could utilize less expensive or free ways of promoting these events (Twitter, Facebook etc.). Events include Heritage Day in Cambridge, Cambridge Hall of Fame, Series of Galt walking tours.

(1,500) 0.00% 3.98% 54$

6 Clerks ServicesReduce Records Management Program Costs

Could reduce budget for program supplies and materials, but this budget covers costs for Iron Mountain & Blue Pencil. City could find efficiencies by looking for an alternative way to store/destroy records.

(3,000) 0.00% 3.98% 54$

7 Taxation BillingIncrease Mortgage Company Fee

Increase charge to mortgage companies for payment of taxes from $10 - $14 per tax billing (standard amongst most municipalities).

(38,000) -0.04% 3.93% 54$

8 Inclusion Services Inclusion Program Costs

Reduction of $2,000 to the Community Wellbeing Advisory Committee (this would reduce total budget to $3,000 – used for training, site visits, potential external resources e.g. learning opportunities/workshops/conferences for members). Reduce $700 in benchmarking (reducing our ability to promote and communicate the benchmarking initiative).

(2,700) 0.00% 3.93% 54$

9Traffic and Transportation

Rainbow CrosswalkEliminate from budget funding for rainbow crosswalk (referred to budget as per Council resolution 19-164)

(15,000) -0.02% 3.92% 53$

10 Corporate Expenditures Salary Gapping

The City’s current salary gapping policy entails leaving positions vacated through staff turnover open for 90 days following the last payroll cost for the employee (i.e. following all vacation time accrued).  Continuing with a 90 day period would yield approx. $76,500 in additional budgetary savings based on 2019 actuals.  It should be noted that this is based on one year actuals only, and staff turnover may alter in 2020.  Leaving positions vacant for 90 days following vacation end can create challenges operationally in delivering programs and maintaining service levels, particularly since any accrued vacation time must be added to this and can add a few weeks to those 3 months, meaning staff are required to keep the position vacant for upwards of 4 months in many cases.  As such, staff would recommend maintaining the budget amount as is, and reducing the policy to a 60 day gapping period.

(76,500) -0.08% 3.83% 52$

11 Taxation Billing Tax Arrears User FeeNew revenue to charge for customers who are sent tax arrears notices (in line with what other municipalities charge). $5.00 fee x 28,000 notices less postage & printing.

(105,000) -0.12% 3.71% 51$

Current Draft Tax Levy Options to Reduce Tax Levy

Appendix ADecision Packages

City of Cambridge 2020 Draft Budget and Business PlanPage 179

Item Program Description of Change Impact of Change

(Decrease)/ Increase on Tax

Levy Tax ImpactTax Levy Increase

Average Household

Impact

12 Planning Services Planning Application Fees

Budgeted revenue can be increased by $25,000 by further increasing Site Plan application fees as well as Letters of Compliance rush service fees. The current proposed fee increase for 2020 (as seen in the fees and charges schedule) is in line with other municipalities. Increasing the Site Plan application fee any further for 2020 may make the City’s fees higher than neighbouring municipalities.

(25,000) -0.03% 3.69% 50$

13Community Development - Administration

Eliminate Co-op Student

Co-op students help to offset spikes in work load associated with spring and summer construction seasons within the building and planning divisions. It also provides training and mentoring opportunities for students looking to gain experience as a municipal planner or building official.

(15,500) -0.02% 3.67% 50$

14Corporate Communications

Eliminate Co-op Student

A communications co-op student will help address resourcing challenges within the Corporate Communications division. This role will primarily assist with website updates and developing social media content, as well as other communications responsibilities, as needed, to help ensure timely information sharing about city services to residents.

(45,400) -0.05% 3.62% 49$

15Facility & Property Management

Fence for the Galt Little Theatre

Installation of fencing around the Cambridge Arts Theatre patio has been included in the draft budget as a one-time $20,000 maintenance expense, as a result of Council resolution 19-21;. The purpose of this fencing is to secure the property and decrease the number of incidents of tenting, public nuisance, and excessive garbage.

(20,000) -0.02% 3.60% 49$

16Community Ambassador Team

Downtown Galt MaintenanceEliminating the one-time maintenance expense included in the budget. This additional maintenance work would increase the community wellbeing in downtown Galt.

(28,000) -0.03% 3.57% 49$

17Traffic and Transportation

Traffic & Transportation Growth Initiatives

Eliminate growth request for additional funding to support speed management program and active transportation initiatives.

(20,000) -0.02% 3.54% 48$

18Parks, Recreation & Culture

50+ Centres Summer Operating Hours

Closure of Allan Reuter Centre / Ted Wake Lounge / David Durward Centre in the months of July and August would result in cancellation of drop in programs and registered programs, closure of two Woodshops, the Durward conditioning room and the Durward dining room. The closure will also affect the operations of the Centres 5 clubs (Choir, Ancient Mariners, Travel Club, Woodshop and Chesley Lake Campers), and disrupt the regular involvement of over 400 registered volunteers. Each centre receives $42,700 in annual funding from the Province plus special grants for minor capital improvements to the facilities; a reduction in service hours may have an impact on the eligibility towards these grants.

(20,000) -0.02% 3.52% 48$

19Parks, Recreation & Culture

Grass MaintenanceReduce from 8 students to 2 students, which would mean 1-2 cuttings in the summer time rather than 2-3

(76,000) -0.08% 3.44% 47$

20 Crossing Guards Unwarranted Crossing Guards Eliminate Unwarranted Crossings (40% unwarranted, Sep-Dec 2020) (75,600) -0.08% 3.35% 46$

21 City Hall City Hall Cleaning Reduce cleaning from 5 days per week to 3 days per week at City Hall. (33,000) -0.04% 3.32% 45$

22 Economic DevelopmentDowntown BIA Core Areas Maintenance

Reduced repair/replace of street infrastructure such as poles, garbage receptacles, benches, Christmas décor etc.

(7,100) -0.01% 3.31% 45$

Appendix ADecision Packages

City of Cambridge 2020 Draft Budget and Business PlanPage 180

Item Program Description of Change Impact of Change

(Decrease)/ Increase on Tax

Levy Tax ImpactTax Levy Increase

Average Household

Impact

23Parks, Recreation & Culture

Needle Clean-up on Private Property

The City currently responds to needle clean-up calls whether they are on private or public property. By eliminating the City's response to calls for clean-up on private property, budget savings could be realized. Alternatively, the City could charge a service fee to recover its costs of performing this service.

(100,000) -0.11% 3.20% 44$

24 External Funding Grant Reduction A reduction of funding towards organizations receiving grant funding. (100,000) -0.11% 3.09% 42$

25 Winter Maintenance Winter OptimizationFind efficiencies in overall program delivery through the winter optimization review currently under way in response to the Province's Audit & Accountability Fund.

(150,000) -0.17% 2.92% 40$

26Facility & Property Management

Centralized FacilitiesFind efficiencies in overall program delivery through the centralized facilities review currently under way in response to the Province's Audit & Accountability Fund.

(150,000) -0.17% 2.76% 38$

27Parks, Recreation & Culture

Urban Forestry Renewal

Removal of the contracted forestry technician position. This position plans field work, reviews construction projects, and administers the private tree bylaw. There would be a significant increase to the wait-time for forestry calls, from the current 60 day wait to 120-140 days and 25 fewer trees would be planted. The former ‘low priority cut-off’ would be reinstated, residents who request the lowest priority work are advised that the City will not be able to address their concern.

(100,000) -0.11% 2.65% 36$

28 Corporate ExpendituresDraw from Employee Future Benefits Reserve Fund

The base budget previously included a draw of $157k from the Future Employee Benefits Reserve Fund, used to offset certain wage costs of the City. This reserve fund is to be used towards funding the City’s post retirement benefits which has an actuarial liability of $66.1 million as of December 31, 2018. The 2020 base budget includes a tax rate impact of 0.09 per cent to phase this draw out over two years. However, this could be deferred for another year.

(78,500) -0.09% 2.56% 35$

29 Corporate Expenditures Insurance

The City's insurance premium has been increasing over the past number of years while the budget has been maintained at its historical levels; this has led to overruns in the insurance cost center. The actual premium was $746k in 2018, and $757k in 2019 while the budget for the premium was only $561k. In total, insurance costs have been overspent by $136k in 2017, $309k in 2018, and 2019 also on target to exceed budget (almost fully spent by Sept). The Insurance Stabilization Reserve currently has a balance of $2.3M and will be used to help offset increases; therefore the budget was increased by only $50k annually to phase in the impact of the City's insurance costs. This could be deferred for another year, which would involve drawing more money from this Insurance Stabilization Reserve.

(50,000) -0.06% 2.50% 34$

30 Corporate Expenditures Investment Income

Based on historical actuals, the budget for investment income could be increased by $100,000 however this bears risk given recent discussions of further interest rate cuts by either or both of the US Federal Reserve and the Bank of Canada and potential of entering into a recession. This may lead to a potential deficit for the City if interest rates are cut within the next year.

(100,000) -0.11% 2.39% 33$

31 Idea Exchange Reduce Service HoursClosing all Idea Exchange locations on Monday evenings. By closing all Idea Exchange branches at 5:30pm instead of 8:30pm, there would be a reduction of library services of about 550 hours annually across the city.

(56,000) -0.06% 2.33% 32$

Appendix ADecision Packages

City of Cambridge 2020 Draft Budget and Business PlanPage 181

Item Program Description of Change Impact of Change

(Decrease)/ Increase on Tax

Levy Tax ImpactTax Levy Increase

Average Household

Impact

32 GeneralNon-Union Cost of Living Adjustment

The budget currently includes a cost of living adjustment for non-union staff of 2%. Eliminating this would yield savings of $299,500. Reducing it to 1.5% would yield savings of $74,900, and reducing it to 1% would yield savings of $149,700.

(299,500) -0.33% 2.00% 27$

$ 92,206,100 2.00% 2.00% $ 27 Potential Revised Tax Levy

Appendix ADecision Packages

City of Cambridge 2020 Draft Budget and Business PlanPage 182