2021 -2025 financial plan overview - metro vancouver - home

2021 - 2025 Financial Plan OverviewCOUNCIL OF COUNCILS – OCTOBER 24, 2020Jerry W. DobrovolnyCOMMISSIONER/CHIEF ADMINISTRATIVE OFFICER

Dean RearGENERAL MANAGER, FINANCIAL SERVICES/ CHIEF FINANCIAL OFFICER

41858536

• Observing 2020 Budget Process o Strengthso Opportunities for Improvement

2

Reflecting Feedback

• Strong financial position• Process includes multiple layers

of scrutiny• Board Strategic Plan and 5 Year

Financial Plan• Provides foundation

3

Strengths

• Overall picture of the budget at the Committee level• Earlier direction from the Board• Greater input and transparency around decision making• Increased understanding of evolving municipal challenges

4

Opportunities for Improvement

Short-term Relief for HouseholdsLeverage supported tools to create a short-term action plan (1-3 years)

Maintain current goals and objectivesContinue work on strategic and long-range plans

Realize New OpportunitiesPartner on projects to increase affordable housing Reduce GHGs Help drive economic recovery

Board Direction from June Workshop

5

• Expanding affordable rental housing through strategic redevelopment and partnerships o 7-8 projects over 5 years (750-900 units)

• Waste-to-Energy District Energyo Up to 70,000 tonnes of GHG reductions per year

• Project delivery – maximizing local benefits

6

Realizing New Opportunities

7

Toolbox

Continuous Improvement

Capital Plan Deferrals

Demand Side Management

Reduce Pay-as-you-go

Increase Debt Amortization

Term

Asset Management Plans• Minimize asset failure risks

and impact to customers• Optimize lifecycle value• Meet asset performance

targets

Financial Management Policy• 15 Year Amortization Period• Pay-as-you-go to ensure

<40% debt servicing cost

• Opportunities for continuous improvemento Find efficiencieso Improve service

• Annacis Cogen Expansion: $1.5M savings in 2020 • Identified 2021 opportunities:

o Fraser Valley Gravel Pit Reclamation - $1.7M savingso Lulu Island Green Biomethane Sales Revenue - $860k in revenueo In-house Engineering and Design - $500k savingso COVID Claims Management on over 50 projects

8

Continuous Improvement

• Review of over 300 capital projectso Numerous adjustments to workplans and schedules

• Leveraging conservation efforts to defer growth-related infrastructure projects (demand side management)

9

Project Review

• Capital plan includes deferring key phases of the Coquitlam Water Supply project

• Unique opportunity to significantly increase water conservation efforts to achieve long-term per capita reductions

10

Project ReviewCapital Plan Deferrals

50% -Coquitlam

33% -Coquitlam

33% -Capilano

33% -Seymour

CURRENT FUTURE

25% -Capilano

25% -Seymour

Water budget household increase: 1.6%

Water Rates currently differentiated by a ratio of 1.25• Non-peak season: October 1 – May 31• Peak season: June 1 – September 30

Proposal: Apply all of the increase to the peak rate• Non-peak rate would remain the same as 2020, at

71.2¢ per 1,000 litres• Peak rate would go from 90¢ to 95¢

11

2021 Peak Season Water RateProposed Amendment

12

Capital Plan RequirementsInfrastructure Resilience

• Aging Infrastructure• Climate Change Adaptation

Clayton Langley Main Valve Chamber Refurbishment

Before

AfterCoquitlam Interceptor: corroded section of pipe Iona Wastewater Treatment Plant: Flood Protection

• Financial tools used to provide short-term relief:o Eased pay-as-you-go funding for next 3 yearso Maintained 15 year amortization period for debt issued

13

Financial Tools

14

Budget Adjustments

$967.5 M Prior Projection for 2021 Budget

$42 Increase for the average household in 2021(Water: $7, Liquid Waste: $26, Solid Waste: $3, MVRD: $6)

$602 Average annual costs for all Metro Vancouver services

$939.5 M Proposed 2021 Budget

$17 Increase for the average household in 2021(Water: $2, Liquid Waste: $8, Solid Waste: $0, MVRD: $7)

$577 Average annual costs for all Metro Vancouver services

15

Overall Household Impact 2021-2025

2020 2021 2022 2023 2024 2025

Water District $172 $174 $182 $191 $207 $226

Liquid Waste $264 $272 $297 $326 $361 $411

Solid Waste $61 $61 $63 $65 $67 $70

Regional District $63 $70 $73 $77 $81 $82

Total Household Impact $560 $577 $615 $659 $716 $789Recommendation (15 yr) % Change 3.2% 6.4% 7.3% 8.5% 10.4%

Alternative (30 yr) % Change 3.2% 4.2% 5.2% 8.8% 9.4%

Prior Year % Change 7.4% 9.0% 8.0% 6.7%

Prior Year Forecast $602 $655 $708 $755

16

Timeframe

2021 Budget Approval (Oct)

Strategic Plan Update (Feb 2021)

Board Budget Workshop (Spring

2021)

• 2022 Budget Cycle will continue to prioritize:o Continuous improvement to realize cost savings and efficiency

gains, including delivery mechanisms for capital projectso Exploring alternatives to building new infrastructure i.e. demand side

management strategieso Sound fiscal managemento Understanding of municipal challengeso Early direction from Boards and Committees

17

Financial Plan Overview

View of Vancouver

18

Drivers:• Increase in Operations averages 2.2% over 5 years• Debt servicing reflective of the capital program, but

favorable rates• Easing Contribution to Capital in 2021/22/23 - Refocusing

in 2024/25

M E T R O VA N C O U V E R O P E R AT I N G B U D G E TE X P E N D I T U R E S

Overview:• 2020 Operating Budget: $894.3M• 2021 Operating Budget: $939.5M (5.0%)• $28M less than previously projected for 2021

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2020 2021 2022 2023 2024 2025

Mill

ions

Operations Contribution to Capital Debt Service Household Impact (Prior) Household Impact (Current)

19

M E T R O VA N C O U V E R O P E R AT I N G B U D G E TR E V E N U E

Overview:• Primary funding sources - water sales, sewer

levy, tipping fees, rents, MVRD requisition• Expecting relative stability for primary sources• Continued focus on alternate sources

Drivers:• Assumed Water DCC revenue received and applied

starting in 2023• Assumed partner funding for upcoming major capital

projects, reduces pressure on levies/rates• Return to the Financial Management Policy in 2024/25

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2020 2021 2022 2023 2024 2025

Mill

ions

Water Sales Liquid Waste Services Levy Solid Waste Tipping Fees MVRD Requisitions Housing Rents Other Revenues

$1,414.7 $1,524.7

$1,321.5 $1,416.1

$1,585.3 $1,523.7

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2020 2021 2022 2023 2024 2025

Mill

ions

Housing Regional Parks Solid Waste Liquid Waste Water

20

Drivers:• Capital project in progress carried forward• Reviewed for deferrals and savings• Project risks and scope provisions

Overview:• 2020 Capital Budget: $1.41B• 2021 Capital Budget: $1.52B• Increase: $110.0M (7.8%)

M E T R O VA N C O U V E R C A P I TA L B U D G E T

19

21

LIQUID WASTE SERVICESGREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT

Lulu Island WWTP

2020 2021 2022 2023 2024 2025

22

$330.2

$274.2

$883.4

$264

$353.4

7.0%

$288.2

5.1%

$934.5

$272

3.1%

9.6%

$393.9

11.5%

$320.0

11.0%

$692.9

$297

9.0%

11.4%

$447.3

13.6%

$357.8

11.8%

$741.1

$326

9.8%

9.1%

$503.8

12.6%

$402.6

12.5%

$924.5

$361

10.6%

5.9%

$578.9

14.9%

$467.0

16.0%

$912.2

$411

14.0%

N/A

LIQUID WASTE SERVICES FINANCIAL PLAN SUMMARY

Total Expenditures ($ Millions)

% Change

Liquid Waste Levy ($ Millions)

% Change

Total Capital Expenditures ($ Millions)

Household Impact ($)

% Change

Prior Cycle Household Impact Change (%)

2020 2021 2022 2023 2024 2025

23

$99.2

$85.4

$89.5

$308

$104.6

5.5%

$90.1

5.4%

$65.2

$320

3.9%

6.8%

$113.5

8.5%

$99.8

10.8%

$91.2

$350

9.4%

6.4%

$120.9

6.6%

$106.9

7.1%

$120.7

$369

5.6%

5.2%

$131.1

8.4%

$119.6

11.9%

$218.1

$407

10.3%

3.1%

$145.6

11.1%

$134.4

12.3%

$330.5

$451

10.7%

N/A

LIQUID WASTE SERVICES FINANCIAL PLAN SUMMARY - VSA


% Change

VSA Liquid Waste Levy ($ Millions)

% Change



% Change


2020 2021 2022 2023 2024 2025

24

$28.6

$26.1

$347.3

$339

$31.4

9.7%

$28.6

9.8%

$404.4

$368

8.5%

10.8%

$37.1

18.1%

$34.3

19.7%

$115.0

$435

18.3%

16.8%

$44.8

20.8%

$41.3

20.6%

$147.3

$518

19.0%

11.6%

$52.2

16.6%

$49.0

18.6%

$44.5

$607

17.2%

12.8%

$60.2

15.2%

$57.3

17.0%

$9.0

$702

15.6%

N/A

LIQUID WASTE SERVICES FINANCIAL PLAN SUMMARY - NSSA


% Change

NSSA Liquid Waste Levy ($ Millions)

% Change



% Change


2020 2021 2022 2023 2024 2025

25

$27.4

$24.7

$37.7

$242

$28.9

5.4%

$25.6

3.8%

$55.7

$247

1.9%

11.6%

$32.0

10.8%

$28.7

12.2%

$45.9

$272

10.2%

12.6%

$36.5

14.3%

$32.6

13.4%

$6.9

$303

11.6%

9.4%

$39.4

7.7%

$35.5

8.9%

$7.9

$325

7.2%

6.6%

$44.3

12.5%

$40.4

13.8%

$11.3

$364

12.1%

N/A

LIQUID WASTE SERVICES FINANCIAL PLAN SUMMARY - LIWSA


% Change

LIWSA Liquid Waste Levy ($ Millions)

% Change



% Change


2020 2021 2022 2023 2024 2025

26

$172.8

$135.9

$408.9

$235

$186.2

7.8%

$141.7

4.3%

$409.2

$239

2.0%

11.2%

$209.1

12.3%

$155.0

9.4%

$440.8

$256

6.9%

13.0%

$242.8

16.1%

$174.8

12.8%

$465.8

$282

10.4%

11.0%

$278.8

14.9%

$196.3

12.3%

$653.4

$310

9.9%

5.9%

$326.5

17.1%

$232.6

18.5%

$560.8

$360

16.0%

N/A

LIQUID WASTE SERVICES FINANCIAL PLAN SUMMARY - FSA


% Change

FSA Liquid Waste Levy ($ Millions)

% Change



% Change


27

WATER SERVICESGREATER VANCOUVER WATER DISTRICT

Capilano Reservoir

2020 2021 2022 2023 2024 2025

28

$310.4

$0.7836

$397.5

$172

$318.6

2.6%

$0.8110

($0.021)

$431.3

$174

1.6%

4.2%

$334.9

5.1%

$0.8534

($0.052)

$462.6

$182

4.1%

7.7%

$356.3

6.4%

$0.9078

($0.087)

$469.5

$191

5.3%

8.8%

$389.6

9.3%

$0.9883

($0.107)

$499.7

$207

8.0%

9.2%

$431.5

10.7%

$1.0950

N/A

$497.6

$226

9.5%

N/A

WATER SERVICES FINANCIAL PLAN SUMMARY


% Change

Blended Water Rate ($/m3)

Blended Water Rate Change From Prior Cycle ($/m3)



% Change


29

SOLID WASTE SERVICESGREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT

2020 2021 2022 2023 2024 2025

30

$114.1

$105.8

$88.5

$61

$118.5

3.9%

$108.5

2.5%

$96.3

$61

0.0%

5.0%

$124.7

5.2%

$113.0

4.1%

$76.3

$63

2.8%

3.5%

$131.1

5.2%

$118.2

4.7%

$65.6

$65

3.5%

3.2%

$137.5

4.8%

$124.3

5.2%

$30.8

$67

4.0%

3.8%

$144.7

5.2%

$131.3

5.6%

$29.9

$70

4.2%

N/A

SOLID WASTE SERVICES FINANCIAL PLAN SUMMARY


% Change

Tipping Fees ($ Millions)

% Change



% Change


31

METRO VANCOUVER HOUSING CORPORATIONLynden Court

2020 2021 2022 2023 2024 2025

32

$52.3

$40.4

$25.3

$53.7

2.7%

$41.3

2.3%

$39.6

$54.7

1.8%

$41.8

1.2%

$61.3

$57.6

5.3%

$44.4

6.1%

$109.3

$58.4

1.5%

$44.8

0.9%

$96.1

$62.1

6.4%

$47.4

5.9%

$48.2


% Change

Housing Rents

% Change


MVHC FINANCIAL PLAN SUMMARY

33

METRO VANCOUVER REGIONAL DISTRICTBurnaby, BC

34

REGIONAL DISTRICT FINANCIAL PLAN

$87.3 $95.3 $98.9

$104.7 $110.7 $113.7

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$-

$20

$40

$60

$80

$100

$120

2020 2021 2022 2023 2024 2025

Milli

ons

2021 - 2025 Regional District Financial Plan

Regional Parks Air Quality Housing Planning and Policy Regional PlanningOther Household Impact (Current) Household Impact (Prior)

2020 2021 2022 2023 2024 2025

35

$87.3

$71.8

$63

$95.3

9.1%

$80.9

12.8%

$70

10.6%

8.8%

$98.9

3.8%

$86.4

6.7%

$73

4.9%

7.1%

$104.7

5.9%

$92.7

7.3%

$77

5.3%

5.9%

$110.7

5.8%

$98.7

6.5%

$81

4.7%

5.7%

$113.7

2.7%

$102.0

3.3%

$82

1.6%

N/A

REGIONAL DISTRICT FINANCIAL PLAN SUMMARY


% Change

MVRD Requisitions ($ Millions)

% Change


% Change


Total Capital Expenditures ($ Millions) $19.9 $23.1 $28.4 $30.7 $34.2 $35.8

Thank you

Pitt River Greenway

2021 -2025 financial plan overview - metro vancouver - home

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