Program: Economic Development Program Based Budget 2015 2017 Page 309
Program: Economic Development Vision Statement: To be recognized by companies as the premier town in Canada in which to locate. Mission Statement: To support existing businesses and attract new ones so that Oakville s business environment is strong, diversified and prosperous. Program Description Economic Development The Economic Development department is one of seven departments in the Town of Oakville s Community Development Commission, along with Building, Planning, Development Engineering, Environmental Policy, Strategic Business Support, and Engineering & Construction. Economic Development may be viewed as a first point of contact for companies, providing access to the various departments with which they engage. The basis for the work of departmental staff is the town s Economic Development Strategy 2009-2019, which includes three main goals: Attract knowledge based industries in the professional services, advanced manufacturing, digital media & animation, and life sciences sectors. Respond to the needs to the business community in order to foster business retention and expansion. Explore international business opportunities. Tourism Tourism services are delivered by The Oakville Tourism Partnership Inc, (OTP), a not-for-profit organization comprising volunteer stakeholders in the local community. OTP focuses on tourism activities that will position the Town of Oakville as a desirable place to visit, enjoy attractions and restaurants, and to shop. It functions as a hub that connects people and coordinates the activities in tourism including provincially funded Regional Tourism Organizations; town departments and facilities; BIAs; Oakville Chamber of Commerce; Halton Region; and local businesses such as hotels, restaurants and retailers. Page 310
Program Services The Economic Development department provides the following services: Marketing to attract new companies and investment Corporate Calling Program and business assistance Site selection services and employment land supply Industry development in targeted sectors Industry events for business retention, expansion and attraction Research and analysis The Oakville Tourism Partnership Inc., an external not-for-profit organization, provides the following services: Marketing Visitor and Community Services Industry Engagement Product Development Customer Service Training and Coordination Staffing Overview Program: Economic Development 2013 2014 2015 2015 2015 2015 Net Approved Approved Capital Service Reallocation Total Change Services/Activities: FTE FTE Impact Level Change of Staff FTE 2015 vs 2014 Economic Development 4.3 4.3 4.3 0.0 Total Economic Development 4.3 4.3 0.0 0.0 0.0 4.3 0.0 Page 311
Program Services Budget Overview 2014 Restated 2015 Requested Net Net Gross Net Gross Net Change Change Services/Activities: Budget Budget Budget Budget 2015 vs 2014 2015 vs 2014 (%) Economic Development 629,100 629,100 651,400 651,400 22,300 3.5% Tourism 39,000 39,000 51,000 51,000 12,000 30.8% Total 668,100 668,100 702,400 702,400 34,300 5.1% Overall, the Economic Development program has increased by $22,300 or 3.5%. The increase is primarily attributable to increases in salaries and benefits. The $12,000 increase in the Tourism budget is a new initiative to help fund the Ambassador Program in the three BIAs. Key Objectives (Initiatives) for 2015 2017 The following objectives for Economic Development will help meet Council s strategic objectives to enhance our economic environment and to be highly valued and widely celebrated for the innovative and outstanding way we satisfy the needs of our businesses: Implement an office campaign to attract professional and financial services companies to Oakville. Provide internal project management for the development of the Life Sciences and Technology District. Undertake a Brownfield Study and develop related program for private sector companies. Implement process improvements including CRM system, site selection tool, data tracking, and GIS mapping for employment districts. Plan and implement business outreach initiatives such as the Innovation Awards Program, Corporate Calling Program, Oakville-China Business Forum, and Canadian Open Realtor Event. Develop international business development plan for targeted industry sectors. Continue with business retention and expansion initiatives in the Advanced Manufacturing sector including implementation of the Auto Mayors recommendations. Complete retail strategies for Downtown and Kerr Village BIAs and research best practices for town and BIA coordination. Key Outcomes A growing and diversified economy as measured by the square footage of commercial land developed. The 2014 target of 340,000 sq. ft. has been exceeded with approximately 876,000 sq. ft. of new commercial construction (excludes additions, alterations and improvements) at year end. Major commercial developments in 2014 include a number of new office buildings in various locations; a supermarket; a car dealership; and underground parking on Post Road. The 2015 target for commercial development is 600,000 sq. ft. A growing and diversified economy as measured by the square footage of industrial land developed. The target of 30,000 sq. ft. in 2014 has been exceeded with over 137,000 sq. ft. of new industrial construction (excludes additions, alterations and improvements) at year end. The majority of this construction (106,120 sq. ft.) relates to the mid-halton water treatment plant; warehouse construction makes up the balance Page 312
for 2014. Oakville has a relatively better competitive position in the office market than in industrial; future industrial development is expected to be lower than the seven year average of 124,127 sq. ft. The 2015 projection for industrial development is 100,000 sq. ft. Increased business community engagement through targeted events including the Ontario Auto-Mayors Roundtable; Oakville Innovation Awards Program; Halton Real Estate Forum; and consultation with the Downtown and Kerr Village BIAs for retail strategy development. 2015 Program Budget Drivers Expenses: 2014 2015 2015 2015 $ % Restated Base Capital Requested Change Change Budget Budget Impact Budget From 2014 From 2014 Personnel Services & Benefits 530,700 548,000 0 548,000 17,300 3.3% Materials & Supplies 10,300 10,300 0 10,300 0 0.0% Purchased Services 89,600 94,600 0 94,600 5,000 5.6% Payments & Grants 37,500 49,500 0 49,500 12,000 32.0% Internal Expenses & Transfers 0 0 0 0 0 0.0% Total Expenses 668,100 702,400 0 702,400 34,300 5.1% Revenues: External Revenues 0 0 0 0 0 0.0% Internal Recovery & Fund Trsfs 0 0 0 0 0 0.0% Total Revenues 0 0 0 0 0 0.0% Tax Levy 668,100 702,400 0 702,400 34,300 5.1% In 2015, the Economic Development program has increased by $34,300 or 5.1%. The main drivers for the change are the following. Personnel Services and Benefits have increased by $17,300 due to CUPE 1329 contract requirements as well as inflationary increases for other wage groups and benefits. Purchased Services have increased by $5,000 due to an increase in official promotion services. Payments and Grants have increased by $12,000 to support student ambassadors in the three BIAs. Page 313
2016-2017 Expenditure Summary 2015 2016 2015-2016 2017 2016-2017 Requested Forecast Change Forecast Change Budget Base Budget (%) Base Budget (%) Gross Expenditures Economic Development Economic Development 651,400 674,300 3.5% 692,500 2.7% Tourism 51,000 51,000 0.0% 51,000 0.0% Total Gross Expenditures 702,400 725,300 3.3% 743,500 2.5% Tax Levy Economic Development Economic Development 651,400 674,300 3.5% 692,500 2.7% Tourism 51,000 51,000 0.0% 51,000 0.0% Total Tax Levy 702,400 725,300 3.3% 743,500 2.5% Gross Expenditures By Type Personnel Services & Benefits 548,000 564,500 3.0% 582,700 3.2% Materials & Supplies 10,300 10,500 1.9% 10,500 0.0% Purchased Services 94,600 100,800 6.6% 100,800 0.0% Internal Charges 0 0 0.0% 0 0.0% Other Expenditures 49,500 49,500 0.0% 49,500 0.0% Minor Capital & Transfer To Reserves 0 0 0.0% 0 0.0% Total Expenditures 702,400 725,300 3.3% 743,500 2.5% Revenues By Type Activity Revenue 0 0 0.0% 0 0.0% Internal Recoveries 0 0 0.0% 0 0.0% Grants 0 0 0.0% 0 0.0% Other Revenue 0 0 0.0% 0 0.0% Total Revenues 0 0 0.0% 0 0.0% Tax Levy 702,400 725,300 3.3% 743,500 2.5% 2016 personnel expenditures include CUPE 1329 contractual requirements as well as inflationary increases for other wage groups and benefits. Materials and supplies increased for inflation. Purchased services include inflationary increases and $5,000 for official promotion. 2017 budgets reflect inflationary increases only. Page 314
2015 Recommended Capital Budget The 2015 capital forecast will provide funds to plan for private lands including an inventory, program development, plan preparation and public consultation. Included will be a town-wide assessment for private lands and analysis to pilot the program in the Midtown core. Initiation of the Brownfield Redevelopment study will be contingent on receiving Federation of Canadian Municipalities (FCM) funding for half of the estimated study costs. Project Total Total Total Total Classification Project External Corporate Proposed Budget Financing Financing Financing Economic Development 65101502 Brownfield Redevelopment Study Strategic Priorities 65,000 32,500 32,500 65,000 Total Economic Development 65,000 32,500 32,500 65,000 Note: External Financing includes development charges, gas tax, external grants as well as program-specific revenue sources. Corporate Financing includes town reserves, capital levy and debt. Page 315
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