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)

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$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