Transcript Presentation Overview

2015 Capital Budget
and 10-Year Forecast
January 28, 2015
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Presentation Overview
1.
2.
3.
4.
5.
Budget Timetable
Capital budget drivers
2015 Capital Budget highlights
Presentation questions
Capital Project Worksheets
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1) 2015 Budget Timetable
Budget
Date
Capital Budget
• Capital Budget By-Law
January 28, 2015
March 23, 2015
Library & EDTC Budgets
February 18, 2015
General Levy Budget & Assessment Analysis Report
• General Levy & Capital Budget By-law
March 5, 2015
March 23, 2015
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2) Capital Budget Drivers
Priority replacement based on MASTER SERVICING PLANS:
 Facility Condition Assessment Study – 2007
 Water Distribution System Master Plan Update – 2007
 Wastewater Master Plan, Storm water Master Plan and
Pollution Control Planning – 2011
 Road System Master Plan Update – 2010
 Municipal Bridge / Culvert Appraisal Rehabilitation /
Replacement Needs Report - 2013
 Parks and Open Space Master Plan - 2006
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2) Capital Budget Drivers
ASSET MANAGEMENT PLAN (AMP)
 Required by Province for grant funding
 Identify long term capital requirements
 Include a financial strategy for sustaining investment
• Staff recommended additional 2.5% levy increase over 5 years to reduce
funding gap of capital reserves.
• New Reserve Policy and targets.
 Approved in principle Oct 14, 2014 with priority to Roads,
Bridges, Water & Wastewater.
 Second presentation to be made Feb 17, 2015.
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2) Capital Budget Drivers
AMP identified FUNDING GAP for core infrastructure:
 $5 million/yr
 2014 increased base contributions by $500,000/yr
 Proposed 2015 $600,000/yr increase reduces infrastructure
gap to $4.5 million/yr.
 Budget based on what Town can afford
 Difficulty in maintaining or improving service level on
existing assets, acquiring new assets every year as a result
of development.
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3) 2015 Capital Budget Highlights
Costs = $12,573,370
52 PROJECTS
Wastewater
8%
Water
21%
Facilities
5%
Fleet
1%
IT & Office
1%
Roads and bridges
33%
Storms and
Municipal drains
22%
Fire
5%
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Parks & Museums
4%
3) 2015 Capital Budget Highlights
Financing = $12,573,370
Development
Charges
8%
Federal Gas
Tax
5%
Town Reserves
66%
Debenture
17%
Other
4%
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3) 2015 Capital Budget Highlights
- Replacement/Rehabilitation
85% of Capital is Replacement/Rehabilitation of Existing:
 $3,014,970 Crescent Park Storm Drainage Phase 4
• Daytona Drive, north of Phillips St to Garrison Rd. New storm sewer,
sanitary sewer replacement, watermain replacement and road
reconstruction
 $2,200,000 Street Light Replacement – using Debentures
• Convert all Town street lights to LED luminaires – approx. 3,320
 $736,000 for 7 projects replacing cast iron watermains
• 25% (66 km) of Town watermains are cast iron
• 2015 Capital replaces 2.7 km; approx. 4.1% of total cast iron
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3) 2015 Capital Budget Highlights
- Replacement/Rehabilitation
Replacement/Rehabilitation of Existing (cont’d):
 $800,000 Road Resurfacing program
 $670,000 Central Ave Bridge related infrastructure
• Related to Region’s reconstruction of bridge
 $775,000 for municipal drains
 $450,000 for water meter life cycle replacement
• increased from $400k in 2013
 $550,000 to replace 1994 pumper at Fire Station #6
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3) 2015 Capital Budget Highlights
- New/Growth Assets
15% of Capital is New or Growth Assets:
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$860,000 Bernard Road storm sewers
$240,000 QEW Gateway feature (two locations)
$150,000 Beaver Creek South Branch Municipal Drain
$455,000 parks and paths enhancements
$157,000 operational enhancements (e.g., accessible transit
shelters, cremation garden, defibrillators, and towable lift).
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3) 2015 Capital Budget Highlights
- Capital Financing
66% from RESERVES:
 Additional $500,000 approved in 2014
 Strategic increases of $1,744,100 since 2011
Year
General Levy
Water/Wastewater
2011
$315,100
$100,000
2012
25,000
*42,000
2013
400,000
*160,000
2014
500,000
*202,000
Total approved
1,240,100
504,000
2015 Proposed
600,000
(carried) *169,641
*Repurposed
debt Charge
funding (no
budget impact)
2015 request not relied upon for delivery of 2015 capital program.
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3) 2015 Capital Budget Highlights
- Capital Financing
8% from Development charges
 Reserve for projects in the DC Study
 Capital Program aligns with 2014 DC Study
5% from Gas Tax Funding
 $867,504/year commitment from Feds; $569,500 proposed
to be used in 2015
 Amount to increase for 2016-2017 by 5% to $910,879
4% from Other
 $462,500 from landowner contributions for Drains
 $100,000 from Regional Grants.
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3) 2015 Capital Budget Highlights
- Capital Financing
17% from Debentures
 New debenture proposed of $2.2 million for LED Street
Lighting Replacement program for approval in 2015
 Debt charges <5% of total Town revenue – low risk
(Provincial limit is 25%)
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3) 2015 Capital Budget Highlights
- Capital Spending Forecast
14,000,000
12,000,000
FLEET
10,000,000
FACILITIES & PARKS MAINTENANCE
8,000,000
INFRASTRUCTURE SERVICES
6,000,000
FIRE DEPT
PARKS & MUSEUMS
4,000,000
IT & OFFICE
2,000,000
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2015
2016
2017
2018
2019
2020
2021
2022
Avg. annual Capital is $8.9 million
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2023
2024
2025
3) 2015 Capital Budget Highlights
- Risks
 Operating budget impact:
• Provided on worksheets for each project
• Total of $81,192/year (0.38% of General Levy)
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Parks relies on unconfirmed cash-in-lieu of parkland
Roads rehab < desired $1 million annual budget until 2021
Interest rates exposure to fluctuating rates on debt
AMP well documented infrastructure funding gap
means conditions of assets will continue to deteriorate
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Highlights – Asset Sustainability
Asset Type
Water
Sanitary
Storm
Road
Bridge
Short Term Viable (10 yr)
Long Term Viable (100 yr)
3) 2015 Capital Budget Highlights
- Opportunities
 Operating budget impact:
• Decline starting in 2016 if LED Street Light program
approved due to lower energy & maintenance costs.
 Canadian Motor Speedway (CMS) New Building Canada
Fund application:
• $42 million request made to New Building Canada Fund –
Small Communities Component (BCF-SCF).
• If successful, would have external services funded with 1/3
Federal, 1/3 Provincial, & remaining 1/3 from the developer.
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4) Presentation Questions
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5) Capital Project Worksheets
- Review
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