2016 Final Capital Budget Report COUNCIL REPORT No. CFS15-043
SUBJECT: 2016 Final Capital Budget Report
FROM: Dan Elliott, Director, Corporate & Financial Services - Treasurer
DATE: October 27, 2015
RECOMMENDATIONS
THAT Report No. CFS15-043 be received; and
THAT the final draft of the 2015 Asset Management Plan be approved; and
THAT the 2015 Ten Year Capital Investment Plan be received; and
THAT the 2016 Capital Budget for Repair and Replacement of existing
infrastructure totalling $8,298,275 as listed in Attachment 3, be approved; and
THAT the 2016 Capital Budget for Growth and New Capital totalling $3,726,600 as
listed in Attachment 4, be approved; and
THAT the 2016 Capital Budget for Studies and Other Projects totalling $350,000
as listed in Attachment 5, be approved; and
THAT the funding sources for each capital project included in this report be
approved as those reviewed and recommended by Special General Committee –
Budget on October 5, 2015.
PURPOSE OF THE REPORT
To present for formal adoption the 2015 Asset Management Plan, the 2015 Ten year
Capital Investment Plan and the 2016 Capital Budget as recommended by the Budget
Committee on October 5, 2015. Additional capital items may be recommended for
approval during the course of review of the 2016 Operating Budget by Committee.
BACKGROUND
Asset Management Plan (AMP)
The Asset Management Plan is a strategic document stating the characteristics and
condition of infrastructure assets, levels of service expected from them, planned actions
to ensure the assets are providing the expected level of service, specifically including
how evaluation and replacement decisions are made, and financing strategies to
TOWN OF AURORA
October 27, 2015 - 2 - Report No. CFS15-043 implement the planned actions. The overall intent of the AMP is to help the Town
ensure investments are made at the right time, future repair and rehabilitation costs are
minimized, and municipal assets are being appropriately maintained for the optimal
service life at lowest cost.
All municipalities are required to have an approved Asset Management Plan (AMP) by
December 31, 2015. A draft of this plan was first presented for review during the 2015
Budget deliberations. A requirement of federal and provincial grant programs is that
each municipal recipient must have a Council approved AMP in place by December 31,
2015. Due to the number of pages, the AMP as reviewed by Budget Committee has not
been attached to this report. However, a website link has been provided in the
Attachments section under Attachment #1.
Ten Year Capital Investment Plan
Complementing the Town’s AMP is its annual Ten Year Capital Investment Plan
representing a consolidation of the anticipated needs of the Town’s departments. This
plan is intended to assist the managers responsible for each asset category to carefully
plan the long term sustainability of each asset, and ensure appropriate and timely
budgeting for the replacement of assets at the optimal time, balancing available funding,
with the need and condition of the asset and its service.
On October 5, 2015, the 2015 Ten Year Capital Investment Plan was presented to the
Budget Committee. Due to the number of pages, the Ten Year Capital Investment Plan
as reviewed by Budget Committee has not been attached to this report. However, a
website link has been provided in the Attachments section under Attachment #2.
The ten year capital investment plan presented contains the detailed plans for assets
showing the approved 2015 capital budget plus ten forecast years from 2016 to 2025.
These plans have been reviewed and updated by each asset manager.
The ten year plan shows a planned investment requirement of $205 million in total over
the next ten years; $106 million for Repair and Replacement, $95 million for growth and
new assets, and approximately $3 million for studies and other. This plan is achievable
financially, provided that Council continues is present practice of increasing annual
contributions to infrastructure reserves by 1% of tax levy each year for at least the next
ten years.
Draft 2016 Capital Budget
On October 5, 2015, an overview of the first draft of the Town’s Capital Budget was
presented to the Budget Committee.
As in the past budgets, the capital budget has been presented in three parts:
- Repair and Replacement Infrastructure Capital
- Growth and New Infrastructure Capital
- Studies and Other Non-Infrastructure Projects
October 27, 2015 - 3 - Report No. CFS15-043
All capital budget estimated costs were assigned a class level indicating the maturity of
the estimate. These class levels can be one of the following: (listed most precision to
least precision)
- Class A: The cost has been verified by a tender submission
- Class B: The estimate is based upon a detailed design
- Class C: The estimate is based upon a preliminary design
- Class D: The estimate represents an informed idea as to the magnitude of
the work required.
As a result of the concept of a “Cash to Capital” reserve allocation from tax levy, and the
internal funding of capital coming from resultant infrastructure and other reserves, there
is no longer a direct impact on the tax rate by the capital budget. As such, the
Committee recommended capital budget is driven by asset need rather than impact on
taxes. A number of projects have been noted in the schedules as “approved pending a
detailed report back to council.” These projects have been approved in principle, yet
Committee has asked staff to provide additional information prior to any contractual
commitments being entered into for the project.
Repair and Replacement Infrastructure Projects - $8.3 million recommended for
investment in existing infrastructure
The proposed Repair and Replacement (R&R) Capital Budget for 2016 represents a
gross cost of $8,298,275 funded mainly from capital reserves including specific R&R
reserves. The 2016 R&R program includes restoration work to facilities, roads, trails,
playgrounds, playing fields, some fleet vehicles and replacement equipment.
Management has confirmed that they have the resource capacity to deliver the
proposed capital program. Management have also confirmed that these are their priority
projects in light of limited R&R reserves by asset group, and each asset manager
agrees with the limited submissions presented for consideration. Attachment 3 outlines
the recommended Repair and Replacement Capital program by project.
Growth and New Infrastructure Projects - $3.7 million investment for new capital
additions
The proposed Growth and New Capital Budget represents a gross cost of $3,726,660,
funded partially (71%) from development charges of $2,623,094. This capital program
includes funding for the construction of new sidewalks, and the purchase of a street
sweeper. Attachment 4 outlines the recommended Growth and New Capital program for
2016.
Studies and Other Projects- strategic investments proposed at $350,000
The proposed Major Studies Capital Budget represents a gross cost of $350,000,
Studies and other projects for this year include an update of the Town’s Official Plan, as
well as a study looking at the Storm Sewer Reserve Fund and Rates. Attachment 5
outlines the recommended Studies and Other Projects program for 2016.
October 27, 2015 - 4 - Report No. CFS15-043 COMMENTS
Conditionally approved projects requiring an additional report will be reported upon
separately by the respective project manager/director directly to General Committee in
the coming months.
LINK TO STRATEGIC PLAN
Developing, reviewing and presenting the annual capital investment plan supports many
aspects of the Strategic Plan. Specifically, this report supports the Plan principles of
Leadership in Corporate Management, Leveraging Partnerships, and Progressive
Corporate Excellence and Continuous Improvement.
ALTERNATIVE(S) TO THE RECOMMENDATIONS
1. May provide alternative directions with respect the recommendations arising from
Special General Committee – Budget Committee.
FINANCIAL IMPLICATIONS
All funding is sourced from existing reserve funds of the Town, and not directly from the
tax rate budget or utility rate budgets. The operating budget is only draft at this time for
2016, but it does include a sustainable increasing contribution of funding into a variety
of reserve funds in support of the town’s ten year capital investment requirements, and
is not tied to any specific capital project. Accordingly the capital budget as
recommended may be approved independently of the operational budgets.
The draft capital budget materials included proposed funding sources for each capital
project. To simplify this report, the recommendations refer to approval of all funding as
recommended by Budget Committee for the projects. Where funding was amended by
Budget Committee, the Town’s website detailed materials will be updated to reflect such
immediately following approval of this report.
CONCLUSIONS
The foundation upon which the town’s repair and replacement budget is built is its 2015
Asset Management Plan which documents the rationale and processes upon which all
R&R capital project decisions are prepared by staff. The Budget Committee
recommends that Council formally approve the final draft of the 2015 Asset
Management Plan.
Attachment 3
PRE-APPROVED
72175 ACC - Improvement of Aurora Community Centre 425,000
72221 SARC - Improvement to Stronach Aurora Recreation
Complex 425,000
72241 89 Mosley - Rehabilitation of the Armoury 275,000
73242 Improvements to Fleury Park Washroom Facility 150,000
TOTAL PRE-APPROVED BY COUNCIL 1,275,000$
BUDGET COMMITTEE APPROVED
Facilities
72188 Tennis Club - Exterior Windows 20,000
72204 Cameras - HDIP 25,000
72238 TH - Council Chambers A/V System 45,000
72240 SARC - Replacement of Floor Scrubber 18,000
72247 AFLC - Whirpool and Pool Heaters 50,000
72248 Library - Brick Repairs 30,000
Facilities Sub Total 188,000$
Fleet
34186 Olympia/ST95 (#592)85,000
34192 Olympia/ST95 (#594)85,000
34236 Frt/FL80 (#31)200,000
34239 3 Tonne Truck (#16)90,000
73275 Sports Field Top Dresser (#236)45,000
Fleet Sub-Total 505,000$
Roads
31025 Asphalt Paving - Old Bloomington Rd 630,000
31105 Recon - Haida Dr & Trillium Dr 885,700
31109 Recon - Kennedy St W & Temperance St 105,000
31111 Recon - Catherine Ave 908,200
31112 Recon - Industrial Pkwy S - Wellington
to Industry St 474,120
31113 Recon - Murray Dr (Section) and Pinehurst Crt 120,000
31114 Recon - Ransom Crt and Ransom St 50,000
31144 Field Asset Data Wireless Devices 62,000
31151 Street Lights 50,000
34611 S/W Repair - Henderson/Tamarac/Poplar 25,000
34711 Streetlight Poles - Bayview 150,000
Roads Sub-Total 3,460,020$
2016 Repair and Replacement Capital Projects
Summarized by Results of Council Discussions
Project ID Project New 2016
Requests
Parks & Recreation
73134 Parks/ Trails Signage Strategy Study & Implementation 195,500
73154 Playground Surface Restoration 10,300
73160 Emerald Ash Borer Management Program 235,000
73189 Artificual Turf Repair - soccer goal areas 35,000
73193 Parks - Bridge Assessment 15,000
73208 Playground Replacement - James Lloyd Park 150,000
73228 Tennis Court Resurface - Fleury Park 40,000
73229 Tennis Court Resurface - Summit Park 20,000
73230 Tennis Court Resurface - McMahon Park 75,000
73235 Walkway Repaving - James Lloyd Park 50,000
73268 Wildlife Park - North Dam Rehabilitation 600,000
Parks & Recreation Sub-Total 1,425,800$
Discretionary
12002 Accessibility Committee 350,000
Discretionary Sub Total 350,000$
Information Technology
14012 Financial System Upgrade 100,000
14047 Computer & Related Infrastructure 114,455
Information Technology Sub Total 214,455$
Rates
41009 3 Phase Electrical Power 30,000
43038 Water Meter Replacement 300,000
43044 Bulk Meter Installation 200,000
43047 Decommission Well House Behind Ransom Crt 40,000
Rate Sub-Total 570,000$
TOTAL PROJECT FUNDING APPROVED AS PRESENTED 6,713,275$
7,988,275$
APPROVED PENDING FURTHER REPORT
24010 Building Dept Counter Enhancements 175,000
72201 Work Station Refresh, Carpet, etc 90,000
72219 22 Church St/Library - Exterior Repairs 45,000
310,000$
8,298,275$
TOTAL APPROVED FUNDING INCL. PRE-APPROVED
TOTAL 2016 REPAIR & REPLACEMENT CAPITAL BUDGET
APPROVED PENDING A DETAILED REPORT BACK TO COUNCIL
Attachment 4
PRE-APPROVED
73282 Light Armoured Vehicle at Aurora Cenotaph P & R 15,000
TOTAL PRE-APPROVED BY COUNCIL $ 15,000
BUDGET COMMITTEE APPROVED
12016 Customer Care Centre Implementation BBS 100,000
12025 Customer Relationship Management (CRM)BBS 86,000
24011 Mobile Devices for BBS BBS 100,000
24012 Bylaw Permit Parking Program BBS 25,000
14065 Mobility Solutions CFS 15,000
72250 AFLC - Roof Top Unit Facilities 35,000
34238 Streetsweeper Fleet 300,000
34627 S/W - Industrial Pkwy N - E Side, AFLC -
St. John's, W Side Montesorri School to St John's IES 515,660
34629 S/W - Mary St - Industrial Pkwy S - Wellington St W IES 75,000
41006 Sanitary Sewer on Leslie St to Service 2C Lands IES 1,485,000
41010 SCADA Monitoring System IES 200,000
73085 Arboretum Development P & R 100,000
81015 Community Improvement Plan Planning 200,000
3,236,660$
73177 Regionally Approved Pedestrian Underpasses P & R 475,000
475,000$
3,726,660$
73279 Leslie Street Underpass A P & R 1,000,000
DEFERRED PENDING A FURTHER DETAILED REPORT TO COUNCIL 1,000,000$
81016 Promenade Streetscape Design &
Implementation Planning 770,000
770,000$
TOTAL 2016 GROWTH & NEW CAPITAL BUDGET
TOTAL PROJECT FUNDING DEFERRED
2016 Growth and New Capital Projects
TOTAL PROJECT FUNDING APPROVED AS PRESENTED
APPROVED PENDING A DETAILED REPORT BACK TO COUNCIL
Summarized by Results of Council Discussions
Project ID Project Dept New 2016
Requests
Attachment 5
BUDGET COMMITTEE APPROVED
42059 Storm Sewer Reserve Fund and
Rates Study IES 50,000
81001 Official Plan Review/Conformity
to Places to Grow Planning 300,000
350,000$ TOTAL 2016 STUDIES & OTHER CAPITAL BUDGET
2016 Studies and Other Capital Projects
Project ID Project Dept New 2016
Requests