Year Tax Supported Capital Budget Forecast Investing In Welland

Transcription

1 Year Tax Supported Capital Budget Forecast Investing In Welland Budget Review Committee Meeting October 16,

2 Plan for 2018 Projected for 9 years ( ) Budget respects Council s self-imposed debt limit of 11% 2018 PROPOSED TAX SUPPORTED CAPITAL BUDGET & FORECAST Guiding principle = focus infrastructure renewal Historical cost asset classes = exceeds $390 million AMP estimated backlog $54 million (replacement value) AMP recommends minimum capital investment $18.0 million $18.0 million only state of good repair Staff recommend decision units to increase capital spending 2

3 1. Canal Lands $ 195, Facilities $ 1,065, Fire $ 1,360,000 CAPITAL SPENDING BY ASSET CATEGORY Fleet $ 854, General $ 584, Parks $ 975, Roads $ 3,466, Sidewalks $ 830, Storm Sewers $ 1,810, Traffic $ 146, Transit $ 792, Bridges & Culverts $ 150,000 Total $12,227,986 3

4 1. Contribution from Operating Budget $ 3,579, New Debt $ 3,183, Small Communities Funding $ 866,667 TOTAL 2018 CAPITAL BUDGET PROPOSED 4. Reserves $ 869, Grants Federal Gas Tax $ 806, Grants Ontario Communities Infrastructure Funding Application Base Formula Base $ 461,652 $ 602, Grants Provincial Gas Tax $ 665, Other Funding Local Improvement Assessments $ 550, Cost Sharing $ 300, Development Charges/Sub-divider Contribution 11. Federation of Canadian Municipalities Green Municipal Funding $ 232,100 $ 112,500 Total $ 12,227,986 4

5 1. General $ 1,934, Fire $ 25,618, Fleet $ 7,228,900 CAPITAL SPENDING BY ASSET CATEGORY Roads $ 30,767, Bridges (Forks Rd Bridge)/Bridge Rehabilitations $ 13,962, Storm Sewers $ 9,395, Sidewalks $ 8,788, Traffic $ 819, Parks $ 6,367, Facilities $ 10,368, Canal Lands $ 1,935, Transit $ 8,652,000 Total $125,836,702 5

6 Contribution from Operating $ 33,526,998 Investing in Welland 1% dedicated tax rate increase $ 3,748,300 New Debt $ 30,600, PROPOSED TAX SUPPORTED CAPITAL BUDGET Reserves $ 3,406,000 Cost Sharing $ 500,000 Grants Federal Gas Tax $ 8,063,220 Grants Ontario Communities Infrastructure Funding $ 10,000,000 Grants Federation of Canadian Municipalities Green Municipal Funding $ 112,500 Grants Small Communities Funding $ 3,226,667 Grants Provincial Gas Tax $ 7,505,000 Payments Humberstone Royalty Payments $ 2,231,571 Grants-Fed/Prov- Fire Stns/Bridge $ 19,618,000 Development Charges/Developer $ 2,748,000 Other Funding Local Improvements Assessments $ 550,000 Total $125,836,702 6

7 State of Good Repair AMP Roads $10.8M $2.3M $3.6M $3.2M Sidewalks $ 2.1 M $ 0.35 M $ 0.72 M $ 0.88 M 2018 PROPOSED CAPITAL TAX SUPPORTED BUDGET LONG TERM INFRASTRUCTURE INVESTMENTS Storm Sewers $ 3.8 M $ 0.2 M $ 0.75 M $ 0.75 M Bridges & Culverts $ 1.2 M $ 0.15 M $ 1.1 M $ 0.15 M Facilities $ 2.5 M $ 0.7 M $ 0.9 M $ 0.9 M State of Good Repair refers only to upkeep, repair and replacement. It does not include any new assets, enhancements, or new developments 7

8 MAJOR CHALLENGES Sustainability State of Good Repair funding versus Level of Service Improvements 2018 PROPOSED CAPITAL TAX SUPPORTED BUDGET LONG TERM INFRASTRUCTURE INVESTMENTS Forks Road Bridge Approximate Replacement Cost of $12 M (2016 Dollars) 2016 Repairs extended the life by a number of years Reliance on Upper-Tier Funding New Fire Hall 8

9 Dedicated Tax Rate Increase (a) 1% = $374,830 DECISION UNIT DEDICATED TAX RATE INCREASE Staff Recommend an Increased Investment in Roadways of 1% BACKGROUND Asset Management Plan Recommendation = $10.8 Million Annually Average Annual Roadway Budget = $3.0 Million Average Funding Gap = $7.8 Million Annually 9

10 Current priority is a coordinated approach to infrastructure renewal where road dollars are coupled with water/wastewater dollars. Example: Aqueduct Street. DECISION UNIT DEDICATED TAX RATE INCREASE Unfortunately this approach leaves only a small remainder available for road resurfacing. Road Resurfacing is ideally performed on streets where buried infrastructure has 25+ years remaining life. Investment would yield additional road resurfacing potential: 1% results in approximately 300 to 500m of additional road rehabilitation (i.e. partial asphalt replacement) 10

11 Investing in Welland Building on our success Thank You 11