Proposed 2015 Budget. Board Budget Workshop October 16, 2014

Transcription

1 Proposed 2015 Budget Board Budget Workshop October 16,

2 Introduction 2015 Budget Process Budget process initiated in 2013 with further enhancements for developing 2015 Budget Development of each budget included a Business Plan to guide work plans; Business Plan contains: Description of service High level goals and Board priorities supported 2015 operational & capital budgets Performance indicators & 2015 objectives 2015 key actions Changes within the organization has provided improved lines of accountability and clearer budget reporting New Budget System Enhances functionality Multi year budgets 2

3 Introduction 2015 Budget Overview Greater Vancouver Water District Greater Vancouver Sewerage & Drainage District Liquid Waste Services Solid Waste Services Metro Vancouver Housing Corporation Greater Vancouver Regional District Air Quality Regional Parks Regional Planning General Government Other Corporate Support 3

4 2015 BUDGET OVERVIEW Proposed 2014 Budget

5 2015 Budget Overview Expenditures Housing Corporation, 6% Regional District, 10% ($ millions) Water District, 37% Solid Waste, 16% Change Water District $242.1 $ % Liquid Waste % Solid Waste (6.2%) Regional District % MVHC % Liquid Waste, 31% $653.7 $ % MV Board Workshop 35 5

6 External Revenues 6% Housing Rents 5% Tax Requisitions 7% Solid Waste Tipping Fee 13% Other 3% Sewer Levy 29% 2015 Budget Overview Revenue Sources Water Sales 37% ($ millions) Change Water sales $236.1 $ % Sewer levy % Solid waste tipping fee (7.6%) Housing rents % Tax requisitions % External revenues % Other* (18.6%) $653.7 $ % * Other revenue sources include reserves, BOD/TSS, DCC. MV Board Workshop 35 6

7 2015 Budget Overview 2015 Household Impact Water District $149 $151 $154 Liquid Waste Solid Waste Regional District Total household impact $419 $422 $427 1 Average based on $715,000 assessed home value. 2 Adjusted to reflect updated information. 7

8 2015 Budget Overview Capital Expenditures ($ millions) Water $206.7 $153.2 $189.3 $190.0 Liquid Waste Solid Waste Housing Regional Parks Total capital expenditures $357.3 $256.6 $313.4 $

9 2015 Budget Overview Debt Management 2015 ($ millions) Funding provided by: 15 Year Debt Financing $ % Pay As You Go Financing Contributions from operations $108.5 Reserves (Housing & Regional Parks) 22.6 Applied surplus % Total 2015 capital expenditures $

10 2015 Budget Overview Debt Management Funding provided by: ($ millions) 15 Year Debt Financing $ % Pay As You Go Financing Contributions from operations $329.9 Reserves (Housing & Regional Parks) 76.6 Applied surplus % Total capital expenditures $1,

11 2015 Budget Overview Total Expenditures ($ millions) 2012 % 2013 % 2014 % 2015 % Operations $ % $ % $ % $ % Debt service % % % % Contribution to Capital % % % % Total $620.0 $639.3 $653.7 $

12 GREATER VANCOUVER WATER DISTRICT Water Services Proposed 2014 Budget

13 2015 Water Budget Expenditures Contribution to Capital 21% Operations 41% Debt Service 38% Operations Debt Service Contribution to Capital ($ millions) $ Change % Change Operations $96.5 $101.4 $ % Debt service (4.0) (4.1%) Contribution to Capital % Total expenditures $242.1 $247.3 $ % MV Board Workshop 41 13

14 Water operations by business area 2015 total = $101.4 M 2015 Water Budget Operations Policy, Planning & Analysis $2.9 M Allocation of Centralized Costs $21.4 M Engineering & Construction $12.1 M Administration & Department Support $1.8 M Major Projects, Management Systems & Utility Services $4.5 M Operations & Maintenance, $45.6 M Watershed, Environmental Management & Quality Control $13.1 M MV Board Workshop 41 14

15 2015 Water Budget Overview Total Water Budget is $247.3 M which is a 2.1% increase over Budget Highlights Include Commencement of filtration of Capilano source Start up of Capilano and Barnston/Maple Ridge Pump Stations Replace Ford Branch Bridge in Coquitlam Watershed Increased legal fees 2015 Key Actions Include Develop additional supply capacity from Coquitlam Reservoir Develop Comprehensive Regional Water System Plan Commission Capilano Energy Recovery Facility Complete construction of Port Mann Water Supply Tunnel 2015 Proposed Staffing Changes 3.0 new regular full time positions 15

16 2015 Water Budget Capital Program 2015 Capital Program is $190.0 M Capital program by asset category Opportunity Projects $3.1M Upgrade $20.8M Drinking Water Treatment $3.3M 2015 Major Capital Projects Port Mann Water Supply Tunnel ($52 M) Angus Drive Main ($12 M) Port Mann Main No. 2 North ($12 M) Capilano Main No. 9 ($10 M) Douglas Road Main No. 2 ($9 M) System Growth $57.5M Risk Management $86.3M Maintenance $19.0M MV Board Workshop

17 2015 Water Budget Household Impact Total water sales $236.1 M $243.8 M Other revenues $6.0 M $3.5 M Total revenues $242.1 M $247.3M 2.1% Water rate average ($/m 3 ) $0.63 $ % 2014 Proposed 2015 Household cost $151 $154 Impact on average household * $2 $3 * Average household assumed to use 241 cubic metres of water annually. MV Board Workshop 41 17

18 GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT Liquid Waste Services Proposed 2014 Budget

19 2015 Liquid Waste Budget Expenditures Contribution to Capital 26% Debt Service 8% Operations 66% Operations Debt Service Contribution to Capital ($ millions) $ Change % Change Operations $135.0 $138.8 $ % Debt service % Contribution to Capital (0.3) (0.4%) Total expenditures $206.5 $210.8 $ % MV Board Workshop 46 19

20 2015 Liquid Waste Budget Operations Liquid Waste operations by business area 2015 total = $138.8 M Administration and Department Support $1.9 M Regulation $1.7 M Source Compliance Monitoring $0.3 M Allocation of Centralized Support Costs $18.9 M Project Delivery $8.1 M Management Systems and Utility Services $18.8 M Environmental Management and Quality Control $9.2 M Policy Planning and Analysis $3.9 M Operations and Maintenance $76.0 M MV Board Workshop 46 20

21 2015 Liquid Waste Budget Overview Total Liquid Waste budget is $210.8 M which is a 2.1% increase over Budget Highlights Include Activities/Infrastructure to meet growth and regulatory demands Asset management Knowledge management systems to address succession challenges 2015 Key Actions Include Develop sector specific source control bylaws Commission new disinfection facility at Northwest Langley Treatment Plant Optimize Chemically Enhanced Primary Treatment systems at Iona and Lions Gate Identify opportunities for sewer heat recovery Implement research trials at Annacis Research Centre 2015 Proposed Staffing Changes 3.0 new regular full time positions 21

22 2015 Liquid Waste Budget Capital Program 2015 capital program is $92.1 M Capital program by asset category Upgrade $14.8 M Opportunity Projects $2.6 M 2015 Major Capital Projects Annacis Island WWTP Stage 5 ($22.6 M) Northwest Langley WWTP ($6.5 M) Gilbert Trunk Sewer Twinning ($6.2 M) Lions Gate Secondary WWTP ($4.0 M) Burnaby Lake North Interceptor ($4.6 M) Risk Management $10.4 M Growth $41.8 M Maintenance $22.5 M MV Board Workshop

23 2015 Liquid Waste Budget Household Impact ($ millions) Sewer levy 1 $185.9 $192.3 User fees BOD/TSS industrial charges Other revenues Total revenues $206.5 $ % 2014 Proposed 2015 Household cost $173 $176 Impact on average household 2 $2 $3 1 Sewer levy increase includes the impact of population growth. 2 Average based on $715,000 assessed home value. MV Board Workshop 46 23

24 2015 Liquid Waste Budget 2015 Sewer Levy 1 $ Millions % Change Fraser Sewerage Area $ % Lulu Island Sewerage Area % North Shore Sewerage Area % Vancouver Sewerage Area % Total Revenues $ % 1 Sewer levy increase includes the impact of population growth. 24

25 GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT Solid Waste Services Proposed 2014 Budget

26 2015 Solid Waste Budget Expenditures Debt Service 2% Contribution to Capital 1% Operations 97% ($ millions) $ Change % Change Operations $97.6 $94.0 $(3.6) (3.7%) Debt service (0.6) (30.2%) Contribution to Capital (2.1) (85.2%) Total expenditures $102.1 $95.8 $(6.3) (6.2%) MV Board Workshop 51 26

27 2015 Solid Waste Budget Operations Solid Waste operations by business area 2015 total = $94.0 M Public Involvement $0.7 M Administration and Department Support $0.9 M New Waste to Energy Capacity $0.6 M Environmental Regulation & Enforcement $1.3 M Corporate Support $3.7 M Solid Waste Planning $3.3 M Solid Waste Operations $83.5 M MV Board Workshop 51 27

28 2015 Solid Waste Budget Overview Total Solid Waste budget is $95.8 M which is a (6.2%) decrease over Budget Highlights Include Reduced waste flows Reduced consulting expenditures Suspension of annual contribution to Solid Waste Sustainability Innovation Fund Revenues in 2015 are contingent on the approval of Bylaw 280 by the Minister of Environment 2015 Key Actions Include New Waste to Energy involves Stakeholder engagement Environmental assessment Second Stage of Request for Qualifications Implementation of organics and clean wood waste disposal bans 2015 Proposed Staffing Changes No proposed staff changes 28

29 2015 Solid Waste Budget Capital Program 2015 capital program is $37.1 M 2015 Major Capital Projects New waste to energy (WTE) capacity development work Surrey Residential Drop Off, Coquitlam Transfer Station replacement, and North Shore Transfer Station reconfiguration work Various existing WTE facility projects Cache Creek Landfill gas collection, closure and landfill gas utilization works MV Board Workshop 53 29

30 2015 Solid Waste Budget Household Impact ($ millions) User fees (tipping fee) $89.3 $82.4 Energy sales Other revenues Total revenues $102.1 $95.8 (6.3%) Tipping fee ($/tonne) $108 $ % 2014 Proposed 2015 Household cost $58 $57 Impact on average household* ($1) * Average household assumed to produce 0.52 metric tonne annually. MV Board Workshop 51 30

31 METRO VANCOUVER HOUSING CORPORATION Housing Services Proposed 2014 Budget

32 2015 MVHC Budget Expenditures Contribution to Capital 7% Debt Service 40% Operations 53% Operations Debt Service Contribution to Capital ($ millions) $ Change % Change Operations $20.9 $21.8 $ % Debt service % Contribution to Capital % Total expenditures $38.9 $39.9 $ % MV Board Workshop 56 32

33 2015 MVHC Budget Overview Total MVHC budget is $39.9 M which is a 2.5% increase over Budget Highlights Include Expenditures continue to be driven by increases in maintenance and materials costs and insurance 2015 Key Actions Include Execute 2014 capital plan projects Next phase of Heather Place Re development detailed engineering and architectural design building permit partial site demolition 2015 Proposed Staffing Changes No new staff positions 33

34 2015 MVHC Budget Capital Program 2015 capital program is $9.5 M Capital program by asset category 2015 Major Capital Projects Routine upgrades to flooring, appliances, kitchens and bathrooms ($2.4 M) Development 17% Regal Place and Tivoli Garden Envelope repairs($1.1 M) Next phase of Heather Place Redevelopment ($2.8 M) Roofing at Kinston Gardens, Tivoli Gardens and Alderwood Place ($0.9 M) Capital Replacement 83% MV Board Workshop 57 34

35 2015 MVHC Budget Revenues ($ millions) Housing rents $33.8 $34.7 Housing subsidies Other revenues Total revenues $39.0 $ % MV Board Workshop 56 35

36 GREATER VANCOUVER REGIONAL DISTRICT Proposed 2014 Budget

37 2015 Regional Services Budgets Expenditures ($ millions) Change Air Quality $7.6 $ % Regional Parks % Regional Planning % General Government (5.5%) Other % Total expenditures $64.1 $ % MV Board Workshop 59 37

38 2015 Air Quality Budget Overview Total Air Quality budget is $8.3 M which is an 9.9% increase over Budget Highlights Include Resources to develop air quality bylaws and regulations Consulting resources to assist with Trans Mountain Expansion Project and Fraser Surrey Docks proposal Enhance non road diesel program and regulatory system software 2015 Key Actions Include Development of air quality bylaws and regulations for protection of human health Expand non road diesel emissions program including partnerships with other levels of government Implement additional energy and greenhouse gas reduction projects Participate in National Energy Board process for Trans Mountain Expansion Project 2015 Proposed Staffing Changes 2.0 new regular full time position 1.0 Air Quality 1.0 Regulation and Enforcement MV Board Workshop 60 38

39 Total Regional Parks budget $33.4 M which is a 1.9% increase over Budget Highlights Include Inflationary impacts Inclusion of contributions to Park Partner organizations Contribution agreements Priority actions from Park Services Review 2015 Key Actions Include Implement solid waste management improvements for garbage, dog waste, recyclables and organics to meet zero waste targets Complete construction of Kanaka Creek Watershed Stewardship Centre Complete construction of Surrey Bend Regional Park facilities Commence construction of Colony Farm Regional Park Sheep Paddocks trail 2014 Proposed Staffing Changes No proposed staffing changes 2015 Regional Parks Budget Overview MV Board Workshop 67 39

40 2015 Regional Parks Budget Capital Program Capital program by program area 2015 total = $13.1 M 2015 Major Capital Projects Heritage Parkland Acquisition Fund ($5.0 M) Capital Maintenance $2.1 M Capital Projects $6.0 M Heritage Parkland Acquisition Fund $5.0 M Surrey Bend entrance and trails ($2.4 M) Colony Farm Sheep Paddocks Trail($1.3 M) Kanaka Creek Watershed Stewardship Centre ($1.1 M) Burnaby Lake Still Creek Bridge Replacement ($0.5 M) MV Board Workshop 68 40

41 2015 Regional Planning Budget Overview Total Regional Planning budget is $2.9 M which is up 5.0% over Budget Highlights Include Additional resources to support expanded scope in environmental impact assessment, environmental policy, and the implementation and review of Ecological Health Plan Resources to support policy development and analysis related to Metro Vancouver 2040 Legal and public hearing costs 2015 Key Actions Include Development of an action plan for implementing the Regional Food System Strategy Provide technical analysis and policy support for sustainable transportation system Incorporate climate change considerations into regional land use planning and analysis Develop tools to nuance Metro Vancouver 2040 land use designations Participate in environmental impact assessments of major energy and transportation projects in the region 2015 Proposed Staffing Changes No Change to staffing MV Board Workshop 69 41

42 2015 General Government Budget Overview Total General Government budget is $13.2 M which is down 5.5% over Budget Highlights Include 2014 external contributions relocated to functional budgets Contribution agreements Fewer strategic international engagement opportunities 2015 Proposed Staffing Changes No change to staffing MV Board Workshop 64 42

43 2015 Other GVRD Budgets Overview ($ millions) Change Emergency Service $4.0 $ % Labour Relations % Electoral Areas % Sasamat Volunteer Fire Department (7.1%) Regional GPS System % Total expenditures $7.1 $ % MV Board Workshop 59 43

44 2015 Regional Services Budgets Household Impact ($ millions) GVRD municipal tax requisition* $46.3 $ % Other revenues Total revenues $64.1 $ % 2014 Proposed 2015 Household cost $40 $40 Impact on average household** $0 $0 * Overall GVRD tax requisition 0.5% higher than 2014 after accounting for 1.5% regional population growth; impact rounded to 0 **Average based on $715,000 assessed home value MV Board Workshop 59 44

45 CORPORATE SUPPORT Proposed 2014 Budget

46 2015 Corporate Support Overview ($ millions) Corporate Planning $1.6 $1.6 Corporate Services External Relations Financial Services Human Resources Legal and Legislative Services Total expenditures $57.0 $50.9 (10.7%) MV Board Workshop 72 46

47 2015 Corporate Support Overview Total Corporate Support budget is $50.9 M which is a decrease of 10.7% from Budget Highlights Include Fewer planned capital upgrades at Head Office Reduced one time upgrade projects in Information Technology One time best practices review for procurement and inventory 2015 Key Actions Include Board Strategic workshop to update Board Strategies Plan Implementation of new corporate budgeting system Legal review of procurement and real property contract templates Development of job descriptions that reflect new Exempt Job Salary Plan 2015 Proposed Staffing Changes 4.0 new regular full time positions 47

48 SUMMARY Proposed 2014 Budget

49 2015 Budget Summary Proposed Reserve Application Proposed use of reserves ($ millions) Debt avoidance New capital items $47.2 One time expenditures Iona Biosolids removal $1.4 Software development 2.7 Environmental improvement projects 0.2 Other Equipment purchases 1.8 Total $53.7 MV Board Workshop 38 49

50 2015 Budget Summary Projected Reserves 2015 ($ in millions) Operating Reserves $46.1 Designated Reserves Sewer DCC Reserves Total $

51 2015 Budget Summary Overview 0.8% Total expenditure increase $659.3M Proposed 2015 budget 51

52 2015 Budget Summary Household Impact* $5 Increase for the average household in 2015 $427 Average annual costs for all Metro Vancouver services * Average based on $715,000 assessed home value. 52