Proposed 2015 Budget Board Budget Workshop October 16, 2014 10320532
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
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
2015 BUDGET OVERVIEW Proposed 2014 Budget
2015 Budget Overview Expenditures Housing Corporation, 6% Regional District, 10% ($ millions) Water District, 37% Solid Waste, 16% 2014 2015 Change Water District $242.1 $247.3 2.1% Liquid Waste 206.5 210.8 2.1% Solid Waste 102.1 95.8 (6.2%) Regional District 64.1 65.5 2.2% MVHC 38.9 39.9 2.5% Liquid Waste, 31% $653.7 $659.3 0.8% MV Board Workshop 35 5
External Revenues 6% Housing Rents 5% Tax Requisitions 7% Solid Waste Tipping Fee 13% Other 3% Sewer Levy 29% 2015 Budget Overview Revenue Sources Water Sales 37% ($ millions) 2014 2015 Change Water sales $236.1 $243.8 3.3% Sewer levy 185.9 192.3 3.4% Solid waste tipping fee 89.2 82.4 (7.6%) Housing rents 33.8 34.7 2.7% Tax requisitions 46.3 47.2 2.0% External revenues 38.0 39.0 2.5% Other* 24.4 19.9 (18.6%) $653.7 $659.3 0.8% * Other revenue sources include reserves, BOD/TSS, DCC. MV Board Workshop 35 6
2015 Budget Overview 2015 Household Impact 1 2013 2 2014 2 2015 Water District $149 $151 $154 Liquid Waste 171 173 176 Solid Waste 59 58 57 Regional District 40 40 40 Total household impact $419 $422 $427 1 Average based on $715,000 assessed home value. 2 Adjusted to reflect updated information. 7
2015 Budget Overview Capital Expenditures ($ millions) 2012 2013 2014 2015 Water $206.7 $153.2 $189.3 $190.0 Liquid Waste 103.4 78.6 84.9 92.1 Solid Waste 26.5 15.7 17.7 37.1 Housing 10.3 5.4 8.0 9.5 Regional Parks 10.6 12.7 13.5 13.1 Total capital expenditures $357.3 $256.6 $313.4 $341.8 8
2015 Budget Overview Debt Management 2015 ($ millions) Funding provided by: 15 Year Debt Financing $186.3 56% Pay As You Go Financing Contributions from operations $108.5 Reserves (Housing & Regional Parks) 22.6 Applied surplus 20.3 151.4 44% Total 2015 capital expenditures $341.8 9
2015 Budget Overview Debt Management 2008 2013 Funding provided by: ($ millions) 15 Year Debt Financing $633.0 54% Pay As You Go Financing Contributions from operations $329.9 Reserves (Housing & Regional Parks) 76.6 Applied surplus 143.4 549.9 46% Total 2008 2013 capital expenditures $1,182.9 10
2015 Budget Overview Total Expenditures ($ millions) 2012 % 2013 % 2014 % 2015 % Operations $378.5 61% $386.4 60% $406.3 62% $413.7 63% Debt service 150.7 24% 137.2 22% 130.8 20% 126.9 19% Contribution to Capital 90.8 15% 115.7 18% 116.6 18% 118.6 18% Total $620.0 $639.3 $653.7 $659.3 11
GREATER VANCOUVER WATER DISTRICT Water Services Proposed 2014 Budget
2015 Water Budget Expenditures Contribution to Capital 21% Operations 41% Debt Service 38% Operations Debt Service Contribution to Capital ($ millions) 2014 2015 $ Change % Change Operations $96.5 $101.4 $4.9 5.0% Debt service 97.6 93.6 (4.0) (4.1%) Contribution to Capital 48.0 52.3 4.3 9.1% Total expenditures $242.1 $247.3 $5.2 2.1% MV Board Workshop 41 13
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
2015 Water Budget Overview Total Water Budget is $247.3 M which is a 2.1% increase over 2014. 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
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 42 + 43 16
2015 Water Budget Household Impact 2014 2015 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 $0.64 1.7% 2014 Proposed 2015 Household cost $151 $154 Impact on average household * $2 $3 * Average household assumed to use 241 cubic metres of water annually. MV Board Workshop 41 17
GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT Liquid Waste Services Proposed 2014 Budget
2015 Liquid Waste Budget Expenditures Contribution to Capital 26% Debt Service 8% Operations 66% Operations Debt Service Contribution to Capital ($ millions) 2014 2015 $ Change % Change Operations $135.0 $138.8 $3.9 2.9% Debt service 15.4 16.1 0.7 4.5% Contribution to Capital 56.1 55.8 (0.3) (0.4%) Total expenditures $206.5 $210.8 $4.3 2.1% MV Board Workshop 46 19
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
2015 Liquid Waste Budget Overview Total Liquid Waste budget is $210.8 M which is a 2.1% increase over 2014. 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
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 $22.5 M MV Board Workshop 48 + 49 22
2015 Liquid Waste Budget Household Impact ($ millions) 2014 2015 Sewer levy 1 $185.9 $192.3 User fees 2.6 2.5 BOD/TSS industrial charges 7.8 7.6 Other revenues 10.2 8.4 Total revenues $206.5 $210.8 2.1% 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
2015 Liquid Waste Budget 2015 Sewer Levy 1 $ Millions % Change Fraser Sewerage Area $97.1 4.5% Lulu Island Sewerage Area 18.0 0.1% North Shore Sewerage Area 19.3 0.0% Vancouver Sewerage Area 57.9 3.8% Total Revenues $192.3 3.4% 1 Sewer levy increase includes the impact of population growth. 24
GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT Solid Waste Services Proposed 2014 Budget
2015 Solid Waste Budget Expenditures Debt Service 2% Contribution to Capital 1% Operations 97% ($ millions) 2014 2015 $ Change % Change Operations $97.6 $94.0 $(3.6) (3.7%) Debt service 2.0 1.4 (0.6) (30.2%) Contribution to Capital 2.5 0.4 (2.1) (85.2%) Total expenditures $102.1 $95.8 $(6.3) (6.2%) MV Board Workshop 51 26
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
2015 Solid Waste Budget Overview Total Solid Waste budget is $95.8 M which is a (6.2%) decrease over 2014. 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
2015 Solid Waste Budget Capital Program 2015 capital program is $37.1 M 2015 Major Capital Projects New waste to energy (WTE) capacity development work Surrey Residential Drop Off, Coquitlam Transfer Station replacement, and North Shore Transfer Station reconfiguration work Various existing WTE facility projects Cache Creek Landfill gas collection, closure and landfill gas utilization works MV Board Workshop 53 29
2015 Solid Waste Budget Household Impact ($ millions) 2014 2015 User fees (tipping fee) $89.3 $82.4 Energy sales 5.8 6.3 Other revenues 7.1 7.1 Total revenues $102.1 $95.8 (6.3%) Tipping fee ($/tonne) $108 $109 0.9% 2014 Proposed 2015 Household cost $58 $57 Impact on average household* ($1) * Average household assumed to produce 0.52 metric tonne annually. MV Board Workshop 51 30
METRO VANCOUVER HOUSING CORPORATION Housing Services Proposed 2014 Budget
2015 MVHC Budget Expenditures Contribution to Capital 7% Debt Service 40% Operations 53% Operations Debt Service Contribution to Capital ($ millions) 2014 2015 $ Change % Change Operations $20.9 $21.8 $0.9 4.3% Debt service 15.4 15.5 0.1 0.4% Contribution to Capital 2.6 2.6 0.0 0.4% Total expenditures $38.9 $39.9 $1.0 2.5% MV Board Workshop 56 32
2015 MVHC Budget Overview Total MVHC budget is $39.9 M which is a 2.5% increase over 2014. 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
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 ($0.9 M) Capital Replacement 83% MV Board Workshop 57 34
2015 MVHC Budget Revenues ($ millions) 2014 2015 Housing rents $33.8 $34.7 Housing subsidies 4.4 4.1 Other revenues 0.7 1.1 Total revenues $39.0 $39.9 2.5% MV Board Workshop 56 35
GREATER VANCOUVER REGIONAL DISTRICT Proposed 2014 Budget
2015 Regional Services Budgets Expenditures ($ millions) 2014 2015 Change Air Quality $7.6 $8.3 9.9% Regional Parks 32.7 33.4 1.9% Regional Planning 2.8 2.9 5.0% General Government 13.9 13.2 (5.5%) Other 7.1 7.7 8.5% Total expenditures $64.1 $65.5 2.2% MV Board Workshop 59 37
2015 Air Quality Budget Overview Total Air Quality budget is $8.3 M which is an 9.9% increase over 2014. 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
Total Regional Parks budget $33.4 M which is a 1.9% increase over 2014. 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
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
2015 Regional Planning Budget Overview Total Regional Planning budget is $2.9 M which is up 5.0% over 2014. 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
2015 General Government Budget Overview Total General Government budget is $13.2 M which is down 5.5% over 2014. Budget Highlights Include 2014 external contributions relocated to functional budgets Contribution agreements Fewer strategic international engagement opportunities 2015 Proposed Staffing Changes No change to staffing MV Board Workshop 64 42
2015 Other GVRD Budgets Overview ($ millions) 2013 2014 Change 9 1 1 Emergency Service $4.0 $4.0 2.2% Labour Relations 2.1 2.2 3.5% Electoral Areas 0.3 0.5 52.7% Sasamat Volunteer Fire Department 0.3 0.2 (7.1%) Regional GPS System 0.4 0.8 85.4% Total expenditures $7.1 $7.7 9.4% MV Board Workshop 59 43
2015 Regional Services Budgets Household Impact ($ millions) 2014 2015 GVRD municipal tax requisition* $46.3 $47.2 2.0% Other revenues 17.8 18.3 Total revenues $64.1 $65.5 2.2% 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 $715,000 assessed home value MV Board Workshop 59 44
CORPORATE SUPPORT Proposed 2014 Budget
2015 Corporate Support Overview ($ millions) 2014 2015 Corporate Planning $1.6 $1.6 Corporate Services 32.0 25.1 External Relations 5.9 6.2 Financial Services 10.0 10.6 Human Resources 4.2 4.4 Legal and Legislative Services 3.3 3.0 Total expenditures $57.0 $50.9 (10.7%) MV Board Workshop 72 46
2015 Corporate Support Overview Total Corporate Support budget is $50.9 M which is a decrease of 10.7% from 2014. Budget Highlights Include Fewer planned capital upgrades at Head Office Reduced one time upgrade projects in Information Technology One time best practices review for procurement and inventory 2015 Key Actions Include Board Strategic workshop to update Board Strategies Plan Implementation of new corporate budgeting system Legal review of procurement and real property contract templates Development of job descriptions that reflect new Exempt Job Salary Plan 2015 Proposed Staffing Changes 4.0 new regular full time positions 47
SUMMARY Proposed 2014 Budget
2015 Budget Summary Proposed Reserve Application Proposed use of reserves ($ 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 0.3 4.6 Equipment purchases 1.8 Total $53.7 MV Board Workshop 38 49
2015 Budget Summary Projected Reserves 2015 ($ in millions) Operating Reserves $46.1 Designated Reserves 210.4 Sewer DCC Reserves 220.0 Total $476.5 50
2015 Budget Summary Overview 0.8% Total expenditure increase $659.3M Proposed 2015 budget 51
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