Draft Six Year Capital Plan & Draft 2015 Capital Budget - - PowerPoint PPT Presentation

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Draft Six Year Capital Plan & Draft 2015 Capital Budget - - PowerPoint PPT Presentation

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Draft Six Year Capital Plan & Draft 2015 Capital Budget Overview Special General Committee Meeting Monday January 12 th , 2015 Agenda Budget Process to Date/Timelines 1. Budget Development/Framework 2. Council Budget Direction 3.

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Special General Committee Meeting Monday January 12th, 2015

Draft Six Year Capital Plan & Draft 2015 Capital Budget Overview

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Agenda

1.

Budget Process to Date/Timelines

2.

Budget Development/Framework

3.

Council Budget Direction

4.

Draft Six Year Capital Plan

5.

2015 Draft Capital Budget

6.

Financial Implications of 2015 Capital Budget

7.

Debt

8.

Reserves

9.

Reserve Funds

  • 10. Development Charges
  • 11. Items for Consideration

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Budget Process To Date

July 28, 2014 (Council Meeting): Council Budget Directions Report July 31, 2014 (Senior Management): Budget Kickoff August to October 2014: Staff prepared draft capital and operating budgets November 2014: Department budget meetings (Dept Head, CAO & Director of Finance)

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Budget Process To Date

December 10, 2014 (Special Council Meeting): Budget Educational Workshop December 2014/January 2015: Staff revised draft capital and operating budgets

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Budget Timelines

January 12, 2015 (Special Council Meeting): Draft Six Year Capital Plan and Draft 2015 Capital Budget January 14, 2015 (Special Council Meeting): Draft 2015 Operating Budgets (Tax, Water & Wastewater) February 2, 2015 (Regular Council Meeting): Draft 2015 Consolidated Budget officially tabled February 17, 2015 (Regular Council Meeting): Adoption of 2015 Consolidated Budget

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Revised

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Council Budget Direction July 28, 2014

The 2015 Capital Budget will be prepared that considers:

1) The Township’s Asset Management Plan 2) The priority and need of the Township’s assets 3) Availability of financial and human resources to complete

the work; and

4) Financial affordability of the Township

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Budget Framework

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Operating Budget (Tax Based, Water & Wastewater):

  • includes costs that are required to maintain existing service levels (core services)
  • includes new initiatives
  • salaries & benefits, contracted services, utilities, general operating costs

Capital Budget & Six Year Plan

  • includes expenditures that are required to build/maintain/replace the

Township’s major infrastructure (Growth and R/R)

  • Roads, Bridges, Water, Wastewater, Fleet, Parks, Facilities, etc.

Proposed Consolidated Budget

  • includes Operating Budgets (Tax Based, Water & Wastewater), and

Capital Infrastructure Requirements/Needs

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Capital Budget/Plan

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Focus on improving state of Township Infrastructure with no new debt being issued and no more than a modest tax increase and without cutting services.

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Draft Six Year (2015 - 2020) Capital Plan

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Six Year Capital Plan

(Large projects and lasting infrastructure) The Six Year Capital Plan is for information, planning and funding purposes only. Staff reviews the Six Year Capital Plan on an annual basis and seeks approval of the first year, known as the Capital Budget.

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Draft Six Year Capital Plan

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Draft Six Year Capital Plan

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Draft Six Year Capital Plan Key Projects

13 Project # Department and Project/Item Gross Expenditures 2014-07 Fire Station 2 – Replacement $2,100,000 2014-07 Fire Station 2 – Furnishings 50,000 2016-02 Security System Upgrades – Works yards, libraries, fire stns, & Arena 60,000 2020-01 Fire Station 4 – Hillsdale 1,315,000 Total Gross Expenditures – Municipal Buildings $3,525,000

Municipal Buildings:

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Draft Six Year Capital Plan Key Projects

14 Project # Department and Project/Item Gross Expenditures Various Fleet Replacement – Heavy Duty Tandem Trucks (2015 – 2020) $1,610,000 2015-05 Roadside Tractor 90,000 2015-06 Replace Yard 1 Grader 270,000 2015-11 Pumper Truck Addition 375,000 2016-03 Replaced Wheeled Excavator (2002) 120,000 2016-09 Replace Pickup #1 140,000 2016-10 Aerial Truck (100% DC) 750,000 2017-06 Plow Truck (100% DC) 235,000 2017-09 Utility Vehicle (C22 – Replacement) 150,000 2017-10 Refurbish Rescue 59 200,000

Fleet & Equipment:

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Draft Six Year Capital Plan Key Projects

15 Project # Department and Project/Item Gross Expenditures 2018-01 Sidewalk Plow (100% DC) 140,000 2018-03 Replace Bulldozer (1988) 100,000 2019-02 Replace Tank #25 300,000 Total Gross Expenditures – Fleet & Equipment $4,480,000

Fleet & Equipment:

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Draft Six Year Capital Plan Key Projects

16 Project # Department and Project/Item Gross Expenditures 2015-13 Flos Rd 7E – Baseline Rd to Old Second North $150,000 2015-14 Flos Rd 4E – County Rd 27 to Hwy 93 550,000 2015-17 Grenfel Rd – Sunnidale Rd to Old Orchard 101,000 2016-11 Partridge Road – Old Second South to Hwy 400 210,000 2016-12 Nursery Road – 0.5km N of Hwy #26 to 3.5km N 370,000 2016-13 Hendrie Road – Hwy 26 to Vespra Valley Road 110,000 2016-15 Golf Course Rd – Hendrie Rd to 1.7km N 170,000 2016-16 Vespra Valley Rd – Hendrie Rd to Hwy 26 150,000 2016-20 Flos Rd 8W – County Rd 27 west to Usher Rd 105,000 2017-12 Pinegrove Rd – Sunnidale Rd to Old Orchard Rd 114,000

Roads & Related Infrastructure (Resurfacing & Rehabilitation Projects):

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Draft Six Year Capital Plan Key Projects

17 Project # Department and Project/Item Gross Expenditures 2018-07 Wilson Dr – County Rd 22 to Hendrie Road $400,000 2018-08 Russell Road – Doran Rd to Forbes Rd 125,000 2018-10 Usher Rd – Flos Rd 8W to County Rd 92 140,000 2019-04 Flos Rd 4W – Vigo to Town limit 550,000 2019-10 Willow Landing Rd – Cedar Creek Rd to St. Vincent St. 130,000 2020-03 Carson Rd – Bayfield St to Anne St 175,000 2020-04 Baseline Rd – Flos Rd 8E to Flos Rd 7E 175,000 2020-05 Mill St W – Old Penetang Road to Old Second North 210,000 2020-06 Coughlin Rd – Horseshoe Valley to Rainbow Valley Rd (1.3km) 130,000 Total Gross Expenditures – Road Resurfacing & Rehabilitation $4,065,000

Roads & Related Infrastructure (Resurfacing & Rehabilitation Projects):

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Draft Six Year Capital Plan Key Projects

18 Project # Department and Project/Item Gross Expenditures 2014-32 Mill Street East – Penetanguishene Road to 100km east of Horne St, Center St and Martin Lane (water line replacement) $360,000 2015-18 Mill Street East – Phase 2 – includes watermain replacement & sidewalks 2,370,000 2015-19 Kerr Street – Shaw St to Ritchie Crescent (Phase 1) 400,000 2015-20 Lawson Avenue – Stone St to Robinson Rd (includes watermain) 803,588 2015-21 Albert St E – Hwy 93 to east limit (0.9km) – First Phase 1,650,000 2015-22

  • St. Patrick’s Subdivision – First Phase

770,000 2015-23 Phelpston Rd – Flos Rd 4 E to St. Patrick’s Way (0.4km) 935,000 2016-21 Phelpston Rd – St. Patrick’s Way to Marl Creek Dr (0.3km) 656,000 2017-13 Yonge Street South – Train Ave N to Queen Street 600,000 2018-12 Kerr St – Yonge to Shaw St (Phase 2) 350,000

Roads & Related Infrastructure (Urban Road Reconstruction Projects):

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Draft Six Year Capital Plan Key Projects

19 Project # Department and Project/Item Gross Expenditures 2018-13 Ronald Rd – East of George Johnston $800,000 2018-14

  • St. Patrick’s Subdivision – Phase 2

680,000 2019-15 Doran Rd – County Rd #27 to 0.3km east 600,000 2019-16 Houden St – Yonge to Patterson 240,000 2020-09 Albert St E – Hwy 93 to east limit (0.2km) – Second Phase 400,000 Total Gross Expenditures – Urban Road Reconstruction $11,614,588

Roads & Related Infrastructure (Urban Road Reconstruction Projects):

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Draft Six Year Capital Plan Key Projects

20 Project # Department and Project/Item Gross Expenditures 2019-17 Flos Rd 8E – County Rd #27 to 2.0km east 100,000

Roads & Related Infrastructure (Rural Road Reconstruction Projects):

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Draft Six Year Capital Plan Key Projects

21 Project # Department and Project/Item Gross Expenditures 2019-19 Grenfel Rd – County Rd 90 to Sunnidale Rd $120,000 2020-11 Flos Rd 10W – County Rd #27 to County Rd #29 215,000 2020-12 Whetham Rd – Hwy 93 to Scarlett Line (1.3km) 300,000 2020-15 Flos Rd 8W – Crossland Rd to Vigo 104,000 2020-16 Rainbow Valley Rd – Coughlin to County Rd 29 129,000 2020-17 Atkinson Rd – Flos Rd 4 to Flos Rd 6W (2.7km) 220,000 Total Gross Expenditures – Gravel Rd Conversion to Hard Top $1,088,000

Roads & Related Infrastructure (Gravel Rd Conversion to Hard Top):

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Draft Six Year Capital Plan Key Projects

22 Project # Department and Project/Item Gross Expenditures 2014-52 Elmvale Lift Station – Wastewater $1,320,000 2015-27 Amelia St – installation of sanitary sewers 1,330,000 2015-28 Sewer Abatement program 600,000 Total Gross Expenditures – Wastewater $3,250,000

Wastewater Related Infrastructure:

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Draft Six Year Capital Plan Key Projects

23 Project # Department and Project/Item Gross Expenditures 2014-53 Midhurst Skateboard Park $150,000 2015-30 Park Signage – Update Park Signage 225,000 2016-25 Accessible Playground 175,000 2017-14 Playground Upgrades (various locations) 120,000 2017-15 Splash Pad 200,000

Elmvale Arena Projects:

2016-27 Steel roof retrofit $325,000 Total Gross Expenditures – Parks & Recreation $1,195,000

Parks & Recreation Projects:

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2015 Draft Capital Budget

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Capital Budget

(Large projects and lasting infrastructure) The Capital Budget includes funds that are required to build/maintain and replace the Township’s major infrastructure (i.e. roads, bridges, water, wastewater, fleet, etc.).

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2014 Actual Capital Expenditures As at November 30, 2014

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2014 Budget 2014 Actual Variance $ Municipal Buildings $1,562,500 $160,542 $1,401,958 Fleet & Equipment 845,000 142,355 702,645 Roads & Related Infrastructure 4,520,700 3,734,397 786,303 Bridge & Culverts 1,102,200 971,391 130,809 Water Infrastructure 322,500 13,325 309,175 Wastewater Infrastructure 250,000

  • 250,000

Parks & Recreation 530,000 84,530 445,470 Information Technology 69,000 9,740 59,260 Total $9,201,900 $5,116,281 $4,085,619

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2015 Draft Capital Budget

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2015 Draft Capital Budget

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2015 Draft Capital Budget

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Review of 2015 Capital Projects

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Debt

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  • The Township borrows money to finance major capital

infrastructure (e.g. roads, bridges, administration centre, water upgrades).

  • The Township uses debt to finance large infrastructure

projects that will benefit the community over a long term.

  • The use of debt to finance large projects allows the

projects to proceed sooner rather than waiting to save enough in cash or grants to pay for them all at once.

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Total Outstanding Debt

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2014 Total Outstanding Debt

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Existing Debt Capacity

Provincial Government allows municipality’s to borrow up to 25% of their

  • wn net revenues in order to service their annual debt servicing costs.

Debt Capacity – refers to the Township’s ability to borrow and/or the amount of funding that the Township can borrow up to.

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Amount A) Estimated 2015 Net Revenues less Grants $16.6M B) 25% of Net Revenues ($16.6M X 25%) $4.1M C) Current Debt Servicing Costs (next slide) $671,408 D) 2015 Estimated Annual Repayment Limit (B - C) $3.47M Available Debt Capacity (D / B) 84%

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Forecasted Debt Servicing Costs (Principal & Interest)

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Amount Funding Source Water Upgrades $75,865 Water Reserve Fund Administration Centre 280,122 Taxation Roads (2012, 2013 & 2014) 475,421 Taxation Total $831,408

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Forecasted Outstanding Debt

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Reserves

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  • A reserve is an allocation from net revenue at the

discretion of Council, after the provision for all known expenditures.

  • Reserves do not require the physical segregation of

money or assets as is the case for reserve funds.

  • Reserves are housed within the main Township bank

account and do not earn interest.

  • An example of a reserve is the public works reserve.
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Reserves (2010 to 2013)

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Forecasted Reserves 2013 to 2018

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Reserve Funds

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  • A reserve fund is a fund that has been set aside either

by by-law of the Council or by a requirement of provincial legislation to meet a future event.

  • Reserve funds are either permissive (Council

initiated/Discretionary) or regulatory (mandated by provincial statute/Obligatory).

  • An example of an obligatory reserve fund is

development charges, whereas a discretionary reserve fund is the Library Capital fund.

  • Obligatory and Discretionary Reserve Funds are

housed in a separate bank account from Township general funds and do earn interest for the purpose of the specific Reserve Fund.

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Reserve Funds (2010 to 2013)

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Forecasted Reserve Funds 2013 to 2018

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Development Charge Reserve Funds

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  • Development charges provide for the recovery of

growth-related capital expenditures from new development.

  • The Development Charges Act, 1997, is the statutory

basis to recover these charges.

  • They are levied on residential, industrial, commercial,

and institutional development at building permit issuance in accordance with the Township’s current Development Charges by-law (2014-003).

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Development Charge Reserve Funds (2010 to 2013)

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Forecasted Development Charge Reserve Funds 2013 to 2018

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Financial Implications

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2014 Gross Capital Expenditures $9,201,900 Carry forward Projects from 2014 to be completed in 2015 3,242,000 Draft 2015 Gross Capital Expenditures 7,221,088 Total Draft 2015 Gross Capital Expenditures $10,463,088 Change in Gross Capital Expenditures $1,261,188 2014 Transfer from Operating to Capital 901,700 Draft 2015 Transfer from Operating to Capital 903,929 Change in Transfer from Operating to Capital $2,229 Net Tax Impact of 2015 Capital Budget 0.25%

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Items for Consideration

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  • Consider the Draft Six Year Capital Plan
  • Consider the Draft 2015 Capital Budget
  • THAT subject to deliberations, that the draft Six Year

Capital Plan and draft 2015 Capital Budget be received, and the Six Year Capital Plan and 2015 Capital Budget be referred to the February 2, 2015 meeting of Council for consideration.

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Questions?

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