Financial Plan Meetings For the 2020-2024 Draft Financial Plan
March 10, 2020 Departmental Presentations • Planning • Engineering • Water Utility • Sewer Utility Capital Budget
Operating Budget Planning, Environment & Sustainability
Department Overview 4 Divisions Community Planning Current Planning Environmental Services Sustainability & Climate Change Plus Administration 30.84 FTE Broad Range of Services most involving Significant Community Engagement
2020 Major Projects Housing Strategy & Needs Assessment Resilient Saanich Strategy & Technical Advisory Committee Implementation of the 2020 Climate Plan: 100 % Renewable& Resilient Saanich Development Process Efficiency Review Implementation of the Agriculture & Food Security Plan Cordova & Cadboro Bay Local Area Plans Uptown Douglas Corridor Plan Garden Suite Bylaw Public Art Program
Planning Budget Comparison Cost Drivers Wage increases and increments Full year for Planner, Planning Clerk and Community Engagement Coordinator approved in 2019
Challenges - Planning Growing Demand For Services Balancing Capacity & Service Levels Enhanced Community Engagement Support for our Partners Ongoing Retention & Recruitment
Opportunities - Planning Evolving Service Delivery Partnerships to enhance the delivery of our and others work programs Supportive Technology
Planning, Environment & Sustainability Discussion and Questions
Operating Budget Engineering Water Utility Sewer Utility
Department Overview Electrical Fleet • 350+ Staff 17.6 M 28 M 1% • Asset Value: $2.1B 1% Roads and Facilities • 4 Divisions, 16 Sections Sidewalks 305 M 445 M 14% • Facilities planning and operations 21% • Transportation planning and operations $2.1 B • Water resource planning and operations Drainage In Assets • Project management office Potable Water 502 M 400 M 23% • Engineering development services 19% • Greener garbage program • Fleet Services Sewers • Dedication on safety and customer service 451 M 21%
2020 Major Projects - Engineering • Undertake a review of the engineering specifications in the Subdivision Bylaw • Fire Station II Rezoning and Development Permit application • Undertake a business case for the redevelopment of Parks and Public Works Yard operations. • Support CRD’s Active and Safe Routes to School Program.
2020 Major Projects - Engineering • Develop a staged strategy for an integrated stormwater management plan and drainage master plan delivery. • Develop a potable water metering strategy • Obtain Organizational Quality Management certification (Engineers and Geoscientists of BC)
2019-20 Budget Comparison Non-discretionary increase • Annual Facilities Maintenance • Budgets have not increased to meet rising costs for contracted services • Increase to electrical and mechanical budgets to meet regulatory requirements for regular servicing and maintenance. • Water budget has not increased to meet hired equipment rentals rates • Operational cost of curbside collection refuse trucks continue to rise Operating increase • Maintenance of new assets (bike lanes, bus shelters, traffic signals, litter bins, hydrants, storm mains, catch basins, etc)
Engineering Comparison Cost Drivers: Increase for adjustment to labour costs Full year for Managers of Development Services and Infrastructure Planning approved in 2019 Maintenance of new assets added in 2019
Water Utility Comparison Cost Drivers: BUDGET SUMMARY 2020 Utility Charges $ 23,525,500 CRD bulk water rates 2019 Utility Charges $ 22,439,000 Increase for adjustment to Net Change $ 1,086,500 labour costs Change by % 4.84% 2020 FTE 50.61 Increase to meet hired 2019 FTE 50.61 equipment costs FTE Change 0.00 New positions approved in FTE Change % 0.00% 2019 budget process
Sewer Utility Comparison Cost Drivers: BUDGET SUMMARY 2020 Utility Charges $ 25,460,500 Regional Sewage 2019 Utility Charges $ 23,532,700 Program Net Change $ 1,927,800 Change by % 8.19% Increase for adjustment to labour costs 2020 FTE 25.56 2019 FTE 25.52 New positions approved FTE Change 0.04 in 2019 budget process FTE Change % 0.16% Utility costs
Challenges - Engineering • Significant call volumes for service related requests • 49% increase in transportation related calls for service Transportation Calls for Service 12,000 Total Calls for service per year 2016 2017 2018 2019
Challenges - Engineering • Equipment and Material costs increasing at higher rate than Labour Development Servicing Cost Drivers 27.1% 35.5% 40.4% 43.2% Equipment 18.7% 20.7% Material 26.6% 23.4% 54.2% Labour 43.7% 33.0% 33.4% 2016 2017 2018 2019
Challenges - Engineering • The Saanich Operations Centre (Parks & Public Works Yard) is in poor condition and is impacting operational efficiencies. • Many large scale regional projects requiring staff resources to ensure the District’s best interests are met
Opportunities - Engineering • Increased energy efficiency realized through renewals/replacements • Planned construction activities allows for value added approach to subsequent works • Leveraging infrastructure related grant funding • Outreach to schools/ participation in job fairs to promote public works and engineering as a viable career • Partnering with academic institutions to develop creative solutions to municipal challenges while providing practical curriculum to students.
Engineering Discussion and Questions
Capital Funding Levels What other factors are there? • Grants from other levels of government • Annual surplus transfers into the IT and Facilities Reserve Funds • Changes in technology can reduce project costs • Other revenue sources • Sharing service delivery with other municipalities
Capital Budget •Reflects the District’s commitment to asset stewardship – taking care of what we already own, balanced with • Commitment to moving forward with significant transportation projects – Shelbourne Valley and Active Transportation Plan
Capital Budget Vehicles Equipment Technology
Vehicles, Equipment & Technology Divided into 6 Sections Presenter • Police Vehicles, Equipment and Technology Finance • Fire Vehicles, Equipment and Technology Finance • Engineering Equipment Engineering • Fleet Vehicles (Parks & Public Works) • Parks and Recreation Equipment Parks & Rec • Information Technology Corporate Services
Police Vehicles, Equipment and Technology • The expenditures in 2020 are for annual fleet replacement, new computer hardware and software and equipment for offices, investigations and officer safety • Funding is a combination of core, reserves, carryforward and grants.
Fire Vehicles and Equipment All Fire Vehicle acquisitions are funded from the Vehicles and Equipment Replacement Reserve. Reserve has annual budgeted funding to manage the replacement of the current fleet. Impact of USD exchange rate, rising costs
Engineering Equipment / Fleet Vehicles All vehicle replacements are funded from the Vehicles and Equipment Replacement Reserve. Vehicles identified for replacement in 2020 include: • 4 hybrid cars • 7 half tonne pickup trucks • 2 two tonne trucks • 5 one tonne trucks • 1 ten yard packer Criteria to determine vehicles due for replacement includes age, mileage, condition, and GHG reduction potential
Parks and Recreation Equipment Annual replacements from core and reserves • Golf course grounds equipment - $105,000 • Paramobile - $40,000 • Recreation equipment - $216,200 • Ice resurfacer - $169,300 • Parks equipment - $266,300
Capital Budget Corporate Technology
Principles Council Strategic Plan Initiatives Organizational Excellence Corporate Technology Principles • Maintain integrity and security of large, complex systems • Maintain functionality of products and services • Maintain compliance with licensing and maintenance • Maintain up-to-date versions of corporate applications • Average life cycle of hardware and software of 3-5 years
Life Cycle and Costing As a project becomes better defined, budget estimates become increasingly accurate. The project budgets covers three distinct phases: 1. Discovery and Requirements Gathering – the assessment of needs and scope of project followed by design and planning for resources, budget, interdependencies with other systems and creation of RFP 2. Awarding of RFP, creating contractual agreement with vendor followed by construction and installation 3. Implementation – partnership between business and vendor to implement software and adjust internal workflows 4. Maintenance of asset and work; budgeting towards replacement and return to phase 1
Assets IT Infrastructure Business Systems New Assets / Projects End user systems and Core systems upon Projects and items as identified in Council’s other tools that support which the entire all of the computer organization depends strategic plans or by applications, security to meet legal, departments and data storage as statutory, business well as mobile and and citizen remote access requirements
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