long term capital planning - greater sudbury
TRANSCRIPT
Long TermCapital Planning
Forecasting the 10-year capital needs and financing gap
October 26, 2005
Excerpts from Short Term Action Plan chart – July 2005
• Develop comprehensive Capital Plan- needs inventory and criteria
• Develop Healthy Community Strategy- complete and communicate
• Develop Arts and Culture Policy – review support for events
• Develop Economic Development Action Plan- job creation focus
Corporate Priorities
• Council’s top priority is to “develop a comprehensive Capital Plan”
• In order to ensure we are addressing this important priority, the timing is appropriate to update the Capital component of the Long Term Financial Plan
• Departments have forecasted the capital needs and available financing for 2006 to 2015
Top Corporate Priority
Agenda• Overall capital needs, financing and forecasted capital financing gap
for the years 2006 to 2015• Departmental capital needs and financing gap• Narrowing the gap - financing sources• A review of the Long-Term Financial Plan principles and policies• What’s next• Questions• Break• Gordon McIntosh facilitation workshop
$0
$50
$100
$150
$200
(millions) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Overall Capital Needs2006 to 2015
Growth, $136 M
Infrastructure Renewal, $911 M
Total needs: $1.047 billion
Infrastructure Renewal:
replacement or betterment of assets
Growth:
new infrastructure projects
ForecastedFinancing Sources
Grants and Other, $30 M
Reserve and ReserveFund Contributions, $62 M
Capital Envelopes, $538 M
$0
$10
$20
$30
$40
$50
$60
$70
$80
(millions) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total financing: $630 M
Projected 2006 Allocationof Capital Envelope
Roads, $20.9 M
Water &Wastewater, $16 M
Buildings, $2.0 M
Solid Waste, $1.0 M Fire, $0.2 MLeisure, $1.0 M
Health &Social Services, $0.7 M
Police, $0.5 M
Administration, $2.0 M
Economic Dev, $0.2 M
$44.5 million
Key Changes to 2003 LTFP
1. Provincial gas tax allocations for transit needs based on established criteria
2. Growth of capital envelope(contribution from the current budget)
2001 – $28 M 2003 – $ 31 M 2006 projected $44.5M
2006 to 2015 forecasted financing builds on prior year’s approvals and reflects growth in two main areas:
How has the capital envelope grown?
- Implementation of Capital Levy of 2.3% in 2005 and 2006allocated to roads envelope
- 100% GST rebate allocated to roads envelope
- Implementation of the Sustainable Capital AssetManagement Program (SCAMP) for water and wastewaterinfrastructure replacement
- Cumulative impact of an Inflation factor per annum
$0
$50
$100
$150
$200
(millions) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gap, $417 M
Funding, $630 M
Gap, $
55.6
M
CapitalFinancing Gap (Forecasted)
Gap, $
54.7
M
Gap, $
30.1
M
Gap, $
94.6
M
Capital Financing Gapby Envelopes
Roads, $99.3 MWater & Waste Water, $42.5 M
Buildings, $83.7 M
Solid Waste, $17.4 M
Fire, $14.8M
EMS, $5.7 MFleet, $20.2 M
Leisure, $85.9 M
H&SS, $10.8 M
Admin, $11.4 M
Growth & Dev, $14.7 M
Public Safety, $10.4 M$417 million
How has the gap changed?
($4)$417$421Capital gap
Increase (decrease)
2006-2015LTFP
2004-2013LTFP
($19.1)$ 0.0$ 19.1Transit
$ 38.8$ 85.9$ 47.1Leisure
$ 42.5$ 42.5N/AWater&WW$ 11.6$ 83.7$ 72.1Buildings
($ 98.6)$ 99.3$ 197.9Roads
Highlights
(in millions)
Growth & Development
Growth & DevelopmentPlanning Document References
• Official Plan, & related background studies• Transit Ridership Growth Plan / Transit Asset Management Plan• Healthy Community Plan • Economic Development Strategic Plan
for Greater Sudbury 2015• Downtown Vision Plan• GIS Strategic Plan• Connect Ontario Plan
• Transit Fleet & Building
• Parking Areas
Growth &Development NeedsInfrastructure Renewal Initiatives
• Projects which advance Economic Enginesand Igniters
• Mining, Arts & Culture, Tourism, Renewable/Alternate Energy
• GIS, technology
Growth &Development NeedsGrowth Initiatives
Growth & Development Needs, Funding and Gap (2006 to 2015)
Needs Funding Gap
Transit $30.9 $30.9 $0.0
Parking $1.5 $1.5 $0.0
Economic Dev. $17.1 $4.4 $12.7
Planning $2.0 $0 $2.0
Total $51.5 M $36.8 M $14.7 M
AdministrativeSupport
• Information Technology
• Administrative Support
• Community Support
Administrative Support
• Council Decisions in support of community projects,ie: Hospital, NDCA
• Mapping the Vision – High Quality Service
• Departmental Business Plans
• Information Technology Committee to develop IT Strategic Plan
• Memorandum of Understanding – Provincial Offences Court
Administrative SupportPlanning Document References
Total value of IT Infrastructure: $19,830,000
• 1,500 PC’s, Notebooks and Tabletsand associated peripherals (ie printers)
• 72 Servers
• 1,450 telephones, cellphones, blackberries, palmpilots
• 85 networked software application packages
Administrative SupportInfrastructure Renewal Initiatives
• Provincial Offences Courtrooms
• New Software Applicationsin support of E-Government
• Agendas Online• 3-1-1 /CRM Interface
• Ongoing demand to expand capacity,use and protection of technology
• 800 PC’s in 2001 grew to 1,500 PC’s in 2005
Administrative SupportGrowth Initiatives
Needs Funding Gap
InformationTechnology $9.2 $2.6 $6.6
AdministrativeSupport $11.5 $3.4 $8.1
Sub Total $20.7 $6.0 $14.7
Community Support $12.7 $16.0 $ -3.3
Total $33.4 M $22.0 M $11.4 M
Administrative SupportNeeds, Funding and Gap (2006 to 2015)
CommunityDevelopment
Community Development
• Delivers great service that consistently exceedsthe citizen’s expectations
• Innovative department continually building partnershipswithin the community
• Enhances our northern lifestyle as to improve the health and social well-being of the citizens of Greater Sudbury
Community Development
Healthy Community
• Active living / healthy lifestyle
• Natural environment
• Civic engagement / social capital
• Economic growth
Greater Sudbury Healthy Community Strategy“…implementation of the Healthy Community Strategywill be setting the foundation for future generations.”
Community Development
Services
• Services touch all citizens
• Variety of Programs
Leisure Master Plan “Mission:To support a physically, intellectually, socially and ecologically
healthy community that nurtures local values, volunteersand community partnerships.”
Community Development
• Bell Park Master Plan (1999)• Greenway Park (East End Ramsey Lake Master Plan)
(September 2001)• Library Branch Needs Study (November 2003)• Parks Open Space/Leisure Master Plan (June 2004)• Adanac Master Plan/Business Plan (June 2005)• Pioneer Manor Master Plan (1993)• Pioneer Manor Strategic Plan (2002 – 2007)• Greater Sudbury Healthy Community Strategy (2005)• Human Services Strategic Plan• Official Plan Housing (2005)• Affordable Housing Strategy
Greater Sudbury Healthy Community Strategy “Civic engagement/social capital strategic priority…Empower the community to take ownership of their health
and well-being…Build community pride and belonging”
Community DevelopmentPlanning Document References
Recreation
• Soccer and playfield development and upgrades
• Basketball court upgrades/development
• Leisure facilities parking lots/tennis court upgrades
• Pool facilities upgrades
• Ski hill upgrades
• Recreational program equipment renewal
• Community arenas & hall upgrades
CommunityDevelopmentInfrastructure Renewal Initiatives
Parks
• Parks equipment replacement
• Community parks and playgroundupgrades/development
Health & Social Services
• Pioneer Manor building maintenance/upgrades
CommunityDevelopmentInfrastructure Renewal Initiatives
Libraries & Citizen Services
• South End and Main Branch Library expansions
Housing
• Housing stock renewal
Cemeteries
• Monument restoration and infrastructure renewal
• Civic Memorial Cemetery Mausoleum Phase III and IV
CommunityDevelopmentInfrastructure Renewal Initiatives
Youth
• Skate park development
• Splash pad development
• Community trail and bike path development
Sports
• Multi-pad sports complex
• Countryside arena additional ice padand soccer complex
• Laurentian University Track
CommunityDevelopmentGrowth Initiatives
Seniors
• Seniors Golden Opportunity
General Citizens
• Greenway Park development (East end of Ramsey Lake)
• Bell Park redevelopment
• Cultural Facilities
CommunityDevelopmentGrowth Initiatives
Needs Funding Gap
Recreation $59.5 $7.9 $51.6
Parks $37.4 $4.0 $33.4
Cemeteries $2.1 $1.6 $0.5
Libraries and Citizen Centres $1.3 $0.9 $0.4
Housing $13.1 $5.0 $8.1
Health and Social Services $10.3 $7.6 $2.7
Total $123.7 M $27.0 M $96.7 M
CommunityDevelopmentNeeds, Funding and Gap (2006 to 2015)
Our Mission• The members of the Greater Sudbury Police Service are committed to providing
quality policing in partnership with our community.
Our Vision• To be recognized by our members, community and peers as a progressive,
innovative leader in policing.
Strategic Directions and Priorities• Public Safety Initiatives• Police-Community Relations and Partnerships• Organizational Effectiveness and Management• Human Resource Management and Development• Facilities Management• Information Technology
Police Service
Planning Document References• Business Plan 2005 to 2007• KPMG Fleet Management Strategies• Skills Development and Learning Plan 2005/2005• Building Condition Surveys• Feasibility Study Lionel E. Lalonde Centre• GSPS Facilities Review• Expanded Taser Deployment Report• Firearms Replacement Review• Police Services Act
Police Service
• Vehicle Purchases• Police Equipment/Supplies• Automation• Facilities• Security/Camera System• Communications
Funding• Capital Envelope• Police Vehicle and
Equipment Replacement Reserve Fund• Capital Financing Reserve Fund
Police ServiceInfrastructure Renewal Initiatives
Vehicle Purchases• Vehicles for expanded area northeast
Police Equipment/Supplies • Expanded Taser Deployment
Facilities • Lionel E. Lalonde Centre
Funding• Capital Envelope• Police Vehicle and Equipment Replacement Reserve Fund• Transition Fund• Capital Financing Reserve Fund
Police ServiceGrowth Initiatives
• Capital Envelope• Police Vehicle and Equipment Replacement Reserve Fund• Transition Fund• Capital Financing Reserve Fund
Police ServiceFunding
Police ServiceNeeds, Funding and Gap (2006 to 2015)
Needs Funding GapPolice $14.0 M $14.0 M $0.0
Public Safety
• Police
• Infrastructure and Emergency Services• Fire• EMS • Emergency Planning• Public Works• Transit
• Proactive collaborative approach to common public safety infrastructure requirements
Public Safety
Public Safety
Current project• Lionel E. Lalonde Centre
Proposed• Renewed Initiatives• Growth
• Voice Radio Systems Phases “One, Two, Three and Four”• Police/Fire Dispatch Amalgamation Report• Master Fire Plan• Project Plan – Fire Services Communications• Mobile Workstation Final Report• Mobile Command Centre Review • Police Services Act• Ambulance Act• Fire Protection and Prevention Act• Community Emergency Management Plan• EMS Deployment Plan• BMS – Winter Operations (Command and Control)
Public SafetyPlanning Document References
Communications ($7.5 million)
• Infrastructure replacement - provision
Vehicle Purchases ($360,000)
• Mobile Command Post - replacement
Public SafetyInfrastructure Renewal Initiatives
Automation ($2.05 million)• Mobile Workstations
Public SafetyGrowth Initiatives
Public SafetyNeeds, Funding and Gap (2006 to 2015)
Needs Funding GapPublic Safety $11.7 M $1.3 M $10.4 M
Infrastructure andEmergency Services
• The IES Department is dedicated to enhancing and preserving the quality of life, property and environment through education, leadership, partnerships and effective response to day-to-day service requirements and emergencies.
• Our Vision is to provide the citizens of Greater Sudbury exemplary service while sharing the responsibility with them to develop a safe, secure, and a “green” environment.
What Is Infrastructure?
Infrastructure andEmergency Services
• Surface Improvements ( Roads)
• Water and Waste Water
• Waste Diversion
• Fleet
• Buildings and Facilities
• Fire
• EMS
• Communication and Information
Infrastructure andEmergency ServicesInfrastructure Renewal Initiatives
Average life span• In-ground Assets 75 years• Above-ground Assets 35 years• Building Assets 75 years• Roads 15 years
Vehicles- based on manufacturer recommendations
and Sudbury’s experience
Infrastructure andEmergency ServicesReality
• Aging Infrastructure City built predominantly in the post-Second World War period to address a growing population, immigration and increased urbanization.
• Reduced Capital Insufficient investment Spending in the 1990’s
• Increased municipal Provincial downloading of infrastructure funding pressures combined with decreased funding to support
municipal capital spending.
1990 – 1992 25%1999 – 2000 7%
• Maintaining ownership Federal and provincial governments have of costly capital divested themselves of capital infrastructure. infrastructure
Infrastructure andEmergency ServicesWhy CGS IES Infrastructure Deficit
Growth Initiatives within each of the Divisions of the Infrastructure and Emergency Services Department will do nothing more than meet the needs of a growing community.
Expanded service boundaries
Enhancements resulting from our need to meet dynamic,widely-endorsed standards for service delivery.
Infrastructure andEmergency ServicesGrowth Initiatives
Needs Funding GapSurface (Roads) $328.5 $229.3 $99.3Water and Waste Water $265.1 $222.6 $42.5Waste Diversion $28.7 $11.3 $17.4Building Assets $107.3 $23.6 $83.7Fleet $43.9 $27.4 $16.5Fire $19.9 $ 5.1 $14.8EMS $11.2 $ 9.2 $ 2.0Emergency Management $3.7 $ 0.0 $ 3.7Communication and Information $3.7 $ 0.0 $ 3.7Total $812.0 M $528.5 M $283.5 M
Infrastructure andEmergency ServicesNeeds, Funding and Gap (2006 to 2015)
CapitalFinancing Gap (Forecasted)
$0
$50
$100
$150
$200
(millions) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital Funding = $630 million
Gap = $417 million
Gap
Funding
Narrowing the GapFinancing Sources
• Continued implementation of the capital levy
• Allocation of federal gas tax to environmentally sustainable infrastructure initiatives
• Continued applications to senior levels of governments
• Use of debt financing where appropriate
Continued Implementationof the Capital Levy
• Long Term Financial Plan Recommendation• 2.3% of previous year’s tax levy added annually• $3.2 million (2005) and $3.3 million (2006) dedicated to roads
Action/ResuIt:• $185 M over next 9 years• Allocation to be determined by Council
Federal GasTax Revenue• New gas tax funding - environmentally sustainable infrastructure
• Net incremental spending
• Focused on (1) transit, (2) water, (3) wastewater, (4) solid waste, (5) community energy systems, (6) local roads, bridges and active transportation infrastructure (approval required)
• $20.4 million between 2006 and 2009; assumed that annual amount of $10.0 M to continue beyond 2010
Action/Result:• $81 M over next 10 years• Allocation determined by Council based on Federal restrictions
Continued Applicationto Senior Levels of Governments
COMRIF
• 2005 Intake 1 approval of $20.8M(1/3 CGS portion) through 2008• Municipal share funded by Roads Envelope
• Intake 2 application submitted in late September• Projected needs only reflected in plan
Action/Result:• Municipal share funding TBD by Council
Use of Debt Financingwhere appropriate
Debt financing (LTFP) should only be considered for:• New, non-recurring infrastructure• Programs and facilities which are self supporting• Projects where the costs of deferring expenditures exceeds debt
servicing costs
Action/Result:• Development of affordable debt plan for Council’s consideration
to close key capital gaps (e.g. OSIFA, internal financing)
What if ?
Capital Financing Gap $ 417 M
Additional Financing Sources:Capital Levy $(185) MFederal Gas Tax $ ( 81) M
Potential Gap (2006 to 2015) $ 159 M
LTFP Capital relatedPrinciples and Policies
• Ensure long-term financial sustainability
• Manage the City’s capital assets to maximize long-term community benefit
• Recognize that funding from senior governments is a crucial element of financial sustainability
• Use debt financing where appropriate
• Maintain reserves and reserve funds at appropriate levels
Next StepsEstablishment of a Capital Priorities Framework
Direction from Council on:
- 2006 Capital Budget
- Development of a 10 year Capital Financing Plan
- Development of formal asset management plans