Draft 2020 Capital Budget January 27, 2020 1 Capital Budget - PowerPoint PPT Presentation

Draft 2020 Capital Budget January 27, 2020 1

Capital Budget Overview Finance Cycle and Budget Timeline Capital Funding Strategy & Ranking Guidelines Items Referred to the Budget Process Budget Bylaw & Placeholder Budgets Capital Summary Funding Sources The Projects (including Multi-Year Projects & Options)…… 2

Finance Cycle 5-Year Financial Plan Annual Reporting Property Tax and Utility Billing Procurement Disbursements & Competitive Bidding 3

Budget Timeline Date Action January 27 Draft Capital and Operating Budget Discussion (Q&A) February 3 Budget Discussion (Q&A) February 10 & 11 Open Houses (Monday Council meeting Evening & Tuesday Day) (Still to be confirmed) February 24 Results of Public Consultation March 2 Draft Five-Year Financial Plan March 9 Financial Plan Bylaw, 1 st , 2 nd , 3 rd March 23 Financial Plan Bylaw, Final April 6 Property Tax Rate, Utility User Fee and Fees and Charges Bylaws, 1 st , 2 nd , 3rd April 20 Property Tax Rate, Utility User Fee and Fees and Charges Bylaws, Final May 25 Property Tax and Utility User Fee Notices Mailed July 2 Property Tax and Utility User Fee Due Date 4

Capital Funding Strategy Annual Reserves and Contribution Surplus to Capital Development Strategic Funding Borrowing 5

Capital Ranking Guidelines Climate • Risk to Health & Safety • Projects in Support of Township Climate Action Strategy Critical • Risk to Health & Safety • Legislative Obligation • Imminent Loss of Asset High • Deterioration or Obsolescence • Leverage External Funding • Emergent Conditions • Extend the Life of an Asset Medium • Desirable New Infrastructure • Social, Cultural & Aesthetic Value • Cost Effective to Replace or Repair it now Low • Action Recommended in Studies / Reports • Promotes Inter-Municipal Cooperation 6

Projects, where possible, have been categorized by staff for Council’s convenience as follows: ‘NEW in 2020’ Safety and Other Categories Project Type Description Example HS: Projects that are required to address matters of public George Preston Recreation Centre: Safety Health & Safety health and safety, with consequence of inaction reasonably Upgrades (refrigeration plant upgrades) anticipated to result in infrastructure failure with significant impact to public health and safety. C: Projects that have been identified by Council as a priority, Truck Route Network Improvements: Council or have previously been endorsed by Council or have been North Langley approved by Council through adoption of a supporting Snow and Ice Control Policies (Roads and Parks) bylaw or policy. S: Projects that are necessary for cost-effective maintenance Horn Pit Reclamation (future benefits) Stewardship of existing infrastructure and provide future benefits by Paving: 264 Street – 300 Block (existing extending the life of an asset; or projects that are expected infrastructure maintenance) to generate future revenues or public benefit. GF: Projects that are funded, in part, by external grants, TransLink, Gas Tax, FCM Grant Funding eligibility criteria of which typically requires Council Annual Commuter Cycling Improvements resolution of matching funds, or specified portion of overall costs, as the municipal contribution to the project. O: Projects that are funded by other non-grant sources such 208 Street Corridor Other as Development Cost Charges or Non-Refundable Deposits. E: Environmental (used in Parks) 7 Where projects fall within more than one category, multiple types have been noted (i.e.: Annual Pedestrian Improvements include 50% TransLink grant funding, and are a health and safety item as they install pedestrian infrastructure where none previously existed)

Items Referred to Budget Process 8

Items Referred to the Budget Process • LED Street Light Program That Council endorse an implementation strategy for the replacement of all existing high-pressure sodium street lighting fixtures throughout the Township with light-emitting diode light fixtures with the associated funding request, currently estimated at $4.3 million, to be included as part of the 2020 budget for Council’s consideration approval. (C&S) This capital project is included in the 2020 budget with debt as the proposed funding source. In the 2021 operating budget and thereafter, the annual debt payment of $297K is offset by savings in utilities estimated to be $380K. (Page 245) 9

Items Referred to the Budget Process • Intersection Improvements: 56 Avenue at 240 Street That consideration of a traffic light at 240 Street and 56 Avenue be referred to the 2020 budget discussions. (C&HS) This capital project is included in the 2020 budget in the amount of $1.2 million as unfunded. (page 264) 10

Items Referred to the Budget Process • Strategic Borrowing Plan Whereas Council is considering many different new expenditures to meet the service needs of this growing community; and Whereas many of these expenditures will be very expensive; Be it resolved that Council ask staff to develop and bring forward a Strategic Borrowing Framework as part of the 2020 budget process; and further Be it resolved that this Strategic Borrowing Framework report or memorandum include a list of prioritized expenditures for Council’s consideration. Strategic Borrowing Framework to be considered along with Financial Sustainability Review and Long Term Funding Strategy for Critical Infrastructure. 11

Items Referred to the Budget Process • Township of Langley ASED Conceptual plans and preliminary drawings for the development of a municipal facility within the Arts, Sports and Entertainment. In the 2020 Capital Budget $950,000 is shown as unfunded. (Page 41) 12

Items Referred to the Budget Process • Murrayville Water Whereas Murrayville residents continually and repeatedly suffer from dis-coloured and staining water as a result of Township’s policy of blending GVWD and local aquifer water; A One-Time Whereas the cost of this blended water is high for Murrayville residents due to their amount of ongoing costs of adding and maintaining home water filtration systems plus rapid turnover $1,425,000 has replacement costs for home appliances. such as water heaters; been included in Therefore be it resolved that Council ask staff to bring forward a report and the Draft 2020 recommendation on switching Murrayville residents off of blended water as soon as Operating possible; Budget. Be it further resolved that this staff report outline the municipal and residential costs as well as timelines of achieving a switchover to either 100% GVWD water or 100% aquifer water; Be it finally resolved that this switchover of water supply in Murrayville be included in the 2020 Township of Langley budget . 13

Items Referred to the Budget Process • Intersection: 28 Avenue and 272 Street That Council receive the November 4, 2019 “Intersection of 28 Avenue and 272 Street” report for information and that this report be referred to the 2020 budget discussions. 14 This project is not currently included in the 2020 capital budget.

Item Referred to the 2021 Budget Process • 24 Avenue, 196 Street to 200 Street That Council refer the matter of funding design and construction of 24 Avenue between 196 to 200 Streets to the budget process to facilitate opening the road after the required improvements are complete. 15

Budget Bylaw In millions BUDGETED EXPENDITURES 2019 Bylaw 2020 Requests Carry Forward Program (preliminary for 2019) 131.4 138.1 New Requests Within Funding Envelope * 93.9 138.6 Placeholder Budget Authority 58.3 63.5 Contributed Assets 35.0 35.0 318.6 375.2 New Requests Outside Funding Envelope 43.4 38.0 Contributed Assets Placeholder Within Funding Envelope CFWD * Of the $138.6 million new requests $35.0 within the funding envelope, $67.67 $63.5 2020 $138.6 million relates to Land Acquisition $138.1 projects which leaves $70.93 million for the remaining projects. $35.0 $58.3 2019 $93.9 $131.4 16 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0

Capital Summary (Breakdown of previous slide, Budget Bylaw, by department) Within Place-holder Division (in millions) CFWD Funding TOTAL Budget Envelope Transportation 40.4 29.1 2.3 71.8 Facility Management 39.1 3.9 10.0 53.0 Parks 8.0 3.5 21.0 32.5 Recreation 0.8 0.4 - 1.2 Stormwater 8.4 4.3 1.2 13.9 Sanitary Sewer 17.1 2.3 2.0 21.4 Water 14.7 19.8 5.0 39.5 Fleet Services 2.5 2.7 - 5.2 Human Resources 0.2 - - 0.2 Information Technology and Fiscal 2.0 1.1 - 3.1 Airport 1.0 0.7 - 1.7 Police Services 0.2 0.1 - 0.3 Fire Services 0.9 2.5 - 3.4 Community Development 0.1 - 36.0 36.1 Solid Waste 0.2 0.1 - 0.3 Corporate Administration & Fiscal 2.5 68.1 21.0 91.6 CURRENT YEAR 138.1 138.6 98.5 375.2 PREVIOUS YEAR 131.4 93.9 93.3 318.6 17