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Budget Staff Presentation
Public Delegations
Council Approval
Non-tax supported • Ontario Building Code
Administration • Court Services • Water Services • Wastewater Services • Stormwater Services
Tonight Tonight November 3
Local Boards and Shared Services
November 16 November 30 December 7
Tax supported
• Capital November 3 November 3 December 7
• Operating November 9 November 30 December 7
- Expansions November 16 November 30 December 7
- Reductions November 16 November 30 December 7
3
Budget timeline
• Program overviews
• Highlights and assumptions
• Budget overview – operating and capital
• Integrated capital planning – Challenge and opportunity
– Capital budget key principals
• Ontario Building Code Administration
• Court Services
• Water Services
• Wastewater Services
• Stormwater Services
• Capital programs of work
Agenda
4
• Ontario Building Code is responsible for the
administration and enforcement of the OBC
• Court Services provides mandatory court services
• Water Services ensures a safe, secure and sustainable
water supply to the community
• Wastewater Services delivers reliable sanitary services
and high quality effluent
• Stormwater Services provides flood prevention and
protects the City’s water resources
Program overviews
5
• 2017 builds on previous years’ work
• No transfer from property tax (fee and rate based budgets)
• Budgets support Council-approved infrastructure planning
studies, financial plans, and corporate guidelines
• Maintain existing infrastructure
• Consider affordability
• Address the infrastructure gap (achieve sustainability)
Highlights and assumptions
6
Budget overview - operating
7
2016 2017
Ontario Building Code Administration Gross expenditure
$3,070,000 $3,390,300
Court Services Gross expenditure
$3,721,800
$3,901,750
Water Services Gross expenditure
$28,644,042
$30,450,665
Wastewater Services Gross expenditure
$29,799,028
$30,946,448
Stormwater Services Gross expenditure
$2,116,600
$4,219,000
Budget overview – capital
8
2016 2017 2017-2025
Ontario Building Code Administration
$35,000 $26,200 $42,800
Court Services $27,800 $50,000 $454,300
Water Services $15,137,300 $18,096,000 $162,055,100
Wastewater Services $12,790,500 $8,298,900 $129,530,600
Stormwater Services $3,860,000 $4,151,100 $36,543,900
Recommendation
9
That Report No. CS-2016-68 titled 2017 Non-Tax Supported Operating and Capital Budgets be referred to the November 3, 2016 Council Budget meeting.
Tab 1
10
Ontario Building Code Administration
• No increase in permit revenue for 2017
• Increase in staff support costs for OBC work
– Corresponding reduction in tax-supported budget
• Interdepartmental support reduction
• Reserve fund transfer to balance budget
Key changes in 2017
11
Tab 1, page 10
2017 recommended budget: operating
12
Item 2015 actuals 2016
approved budget
Total 2017 recommended
budget
Yr/Yr change
Yr/Yr change
(%)
Permit Revenue ($3,607,816) ($3,070,000) ($3,000,000) ($70,000) -2.3
Total Revenue ($3,607,816) ($3,070,000) ($3,390,300) ($320,300) 10.4
Transfers to Reserves
$783,431 $270 $0 ($270) 100
Total Expenditures $3,607,816 $3,070,000 $3,390,300 $320,300 10.4
Net budget $0 $0 $0 0 0.0
Full-time equivalents
26.3 26.3 26.3 0
Tab 1, page 10
2017-20 recommended budget: operating
13
Tab 1, page 12
Item Total 2017
recommended budget
2018 projected
2019 projected
2020 projected
Permit Revenue ($3,000,000) ($3,120,000) ($3,244,800) ($3,374,600)
Total Revenue ($3,390,300) ($3,469,630) ($3,551,300) ($3,619,700)
Transfers to Reserves
$0 $0 $0 $0
Total Expenditures
$3,390,300 $3,469,630 $3,551,300 $3,619,700
Net budget $0 $0 $0 $0
Full-time equivalents
26.3 26.3 26.3 26.3
The forecasted draw on the reserve fund is not sustainable. A strategy will be developed to mitigate this systemic negative variance during the preparation of the 2016 reserve fund report.
Permit fees, operating costs & reserve activities ($000's)
14
Tab 1, page 15
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012 2013 2014 2015 2016
Projected
2017
Forecast
2018
Forecast
2019
Forecast
2020
Forecast
Permit Fee Revenues Operating Costs Reserve Fund
Total
project cost
Capital
reserves
Strategic Plan - IT $69,000 ($69,000)
Total capital budget $69,000 ($69,000)
2017-2026 capital budget
15
The figure represents the 10-year capital costs to be funded from OBC.
Tab 1, page 13
OUR SERVICE
• Implement the electronic permit drawing project
OUR RESOURCES
• Recommend building bylaw amendments
• Review full year results of radon testing program
• Implement building code amendments
2017 initiatives
16
Tab 1, page 9
Court Services
Tab 2
17
Funding models
18
POA
Gross revenue - expenses
=Net share to County
=Net share to City (to non-tax budget reserves)
Parking Ticket Administration
Gross revenue - expenses
=Total net to City (to tax-supported budget)
• Increase in POA charge volumes
• Increase in parking charge volumes
• Increase in payments through collection agencies and
online payments
2016 trends informing 2017 budget
19
2017 recommended budget: operating
20
Tab 2, page 19
Item 2015 actuals 2016
approved budget
Total 2017 recommended
budget
Yr/Yr change
($)
Yr/Yr change
(%)
Revenues ($4,009,408) ($3,721,800) ($3,901,750) (179,950) 4.8 Expenditures $3,420,430 $3,709,795 $3,833,715 123,920 3.3 Net budget before reserve financing ($588,978) ($12,005) ($68,035) (56,030) 466.7 Reserve financing $588,978 $12,005 $68,035 56,030 466.7 Net budget after reserve financing
$0
$0
$0
0
0.0
Full-time equivalents
15.8 14.0
15.0
1.0 7.1
2017-20 budgets: operating
21
Tab 2, page 23
Item
2017
requested
budget
2018
projected
budget
2019
projected
budget
2020
projected
budget
Revenues ($3,901,750) ($3,955,942) ($4,011,218) ($4,067,599)
Expenditures $3,833,715 $3,897,533 $3,945,602 $3,968,320
Net budget before reserve financing ($68,035) ($58,409) ($65,616) ($99,279)
Reserve financing $68,035 $58,409 $65,617 $99,279
Net budget after reserve financing $0 $0 $0 $0
Full-time equivalents
15.0
15.0 15.0
15.0
Title/Position: POA Clerk
Type: Growth
Budget impact: $63,800
Overview
• Address additional payment processing and customer service requirements related to: – Collections
– Online payments
– Increasing charge volumes
Operating expansion
22
Tab 2, page 22
Funding models
23
POA Revenue above 2016 budget
Gross revenue – expenses ($2,809,600) – $2,040,245
=Net share to County ($301,320)
($15,220)
=Net share to City ($468,035) (to non-tax budget reserves)
($56,030)
Parking Ticket Administration
Gross revenue – expenses ($1,070,300) – $214,650
=Total net to City ($855,650) (to tax-supported budget)
($41,570)
Of the net share to the City ($468,035):
• $400,000 to capital debt service costs
• $ 68,035 to POA Contingency Reserve
POA net revenue distribution
24
2017-2026 capital budget
25
Tab 2, page 24
Total
project cost
County
contributions
Capital
reserves
Court facilities $235,900 $117,950 $117,950
Court administration $268,400 $134,200 $134,200
Total capital budget $504,300 $252,150 $252,150
Reserves and reserve funds
26
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Contingency CapitalTab 2, page 27-28
OUR SERVICES
• Digital case management (e.g. electronic case disclosure)
• Explore remote language interpretation for trial courts
OUR RESOURCES
• Expand data upload capabilities for e-ticket solutions
• Investigate options to upgrade Parking Ticket operating
system
2017 initiatives
27
Tab 2, page 18
Water Services
Tab X
28
“The Safe Drinking Water Act, 2002 includes a statutory standard of care for
individuals who have decision-making authority over municipal drinking water systems
or who oversee the operating authority of the system. This can extend to municipal
councilors. There are legal consequences for not acting as required by the
standard of care, including possible fines or imprisonment.
It is important that members of municipal council and municipal officials with decision-
making authority over the drinking water system and oversight responsibilities over the
accredited operating authority understand that they are personally liable, even if the
drinking water system is operated by a corporate entity other than the municipality.”
Excerpted from
Taking Care of Your Drinking Water:
A Guide for Members of Municipal Councils Province of Ontario (2014)
Statutory standard of care
29
Tab 4, page 35
• Forecasted 0.8 per cent decrease in 2017 billable
consumption:
– Efficient building for residential growth
– Conservation program gains = lower customer use
– 2016 was a leap year
• Capital financing, compensation and expansions
• Increases to departmental cross charges
Pressures on water and wastewater rates
30
• Overall electricity cost increase of 16 per cent
• Property tax adjustments and new servicing charges
• A mandatory financial plan that requires sustainable funding
• Need to close the sustainable infrastructure funding gap
– Capital reserves not sufficient to fund accumulated
depreciation
Pressures on water and wastewater rates
31
• Consistent with sustainability targets of Long-Range
Financial Plan
• Ensure continued compliance with provincial regulations
• Ensure adequate lifecycle funding for system infrastructure
renewal
• Predictable and affordable - eliminate rate spikes
• Maintain cost competitiveness
• Encourage efficient use by allowing customers to pay based
on usage
Rate setting objectives
32
Demand forecasting methodology
33
2017 billable revenue forecast development
Accuracy assessment and revenue stream adjustment
Revenue stream growth evaluation and forecast
2016 YTD revenue analysis and year-end forecasting
Getting the numbers right
• Develop detailed water and wastewater demand forecasts
• Update and modify budget expense lines to meet spending
targets
• Develop, review, and prioritize expansion packages
• Update capital budget and forecast
Budget development
34
Modeling required rates
• Match rate model to expense total and required revenue
(both volumetric and basic rates)
• Model required reserve contributions
• Prepare multi-year budget forecasts
• Benchmark against Council-approved Long-range Financial Plan
Budget development
35
• Customers control and reduce bills
• Decreases and defers community capital investments
• Reduces water and wastewater pumping, treatment, chemical,
and maintenance costs (lowers rate pressures)
• Cheapest source of new capacity for service reliability and
future growth
• Leaves groundwater in the aquifer for future use and
environmental benefit
• Mandated by the province as part of our Permits To Take Water
Benefits of efficient water use
36
Residential Consumption Per Capita: city of Guelph average single family household
37
207.24
201.06
194.39 194.79
183.12
180.52
183.93
165.00
170.00
175.00
180.00
185.00
190.00
195.00
200.00
205.00
210.00
2009 2010 2011 2012 2013 2014 2015
Wate
r U
se P
er
Household
(cubic
metr
es/y
ear)
Note: peak in 2015 due to frozen water pipes
*Average annual volume of water consumed by a three-person household in Guelph
** Average residential annual bill with two per cent applied decrease observed in residential sector (2011 to 2015 average) – equaling 176 cubic meters/year housed consumption in 2017 - 2017 average residential annual bill is prorated for 365 days for comparison to the 2016 bill
Rate change and forecast
38
Tab 3, page 29
2016 2017 Change
Water volume charge $/cubic metre $1.59 $1.67 $0.08
Water basic charge $/day $0.26 $0.26 $0.00
Wastewater volume charge $/cubic
metre $1.73 $1.80 $0.07
Wastewater basic charge $/day $0.32 $0.32 $0.00
Average residential annual bill
(180 cubic metres*) $810 $836 $26 or 3.3%
Predicted actual average residential
annual bill** $810 $824 $14 or 1.7%
Water/Wastewater rate and budget forecasts
39
Tab 3, page 29
2017
forecasted
2017
recommended
Long-range
Financial
Plan
Water
Budget per cent increase 4.6% 6.3% 5.0%
Volume charge per cubic metre $1.69 $1.67
Wastewater
Budget per cent increase 4.6% 5.1% 5.0%
Volume charge per cubic metre $1.84 $1.80
Comparison of residential water/wastewater total volumetric and service charges (2016 rates)
40
Tab 3, page 30
Comparison of Average Household Water/ Wastewater Bills by Municipality (2016 rates)
41
$0.00
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
Green bars represent municipalities using groundwater Purple bar represents the City of Guelph which also uses groundwater Blue bars represent municipalities using surface water or a mix of surface and groundwater
Tab 3, page 31
Revenue
• Billable consumption: forecast 0.8 per cent decrease
Operating budget
• Compensation increase of $241,100 or 3.7 per cent
• Purchased goods increase of $401,920 or 14.0 per cent including
• Increase in utility and taxes costs ($350,000)
• Increase in operating cost ($51,900)
2017 major operating budget changes
42
Tab 4, page 39
Operating budget (continued)
• Purchased services increase of $127,650 or 4.3 per cent including
• Increase in rental equipment and operators ($50,500 or 23.4%)
• Other transfers increase of $14,673 (GRCA Levy)
2017 major operating budget changes
43
Tab 4, page 39
Operating budget (continued)
• Internal charges increase of $241,480 or 8.1 per cent
(Fleet, IT, budget realignment)
• Reduction in Contingency Fund of $440,000
Net expenditure increase of 3.6 per cent
• Not including expansions and capital financing
2017 major operating budget changes
44
Tab 4, page 39
Operating Budget
• Capital financing increase by $770,000 (6.3%) – growth and non-
growth
Overall operating expenditures increase of $1,806,623 (6.3%)
2017 major operating budget changes
45
Tab 4, page 39
2017 recommended budget: operating
46
Tab 4, page 38
Item 2015 actuals 2016 approved
budget
Total 2017 recommended
budget
Yr/Yr change
($)
Yr/Yr change
(%)
Revenues ($28,122,035) ($28,644,042) ($30,450,655) ($1,806,623) 6.3 Expenditures $28,122,035 $28,644,042 $30,450,655 $1,806,623 6.3 Net budget
$0
$0
$0
$0
0.0
Full-time equivalents 57.0 64.0 65.0 1.0
Assumptions: Water Services Forecast
• Reflective of the approved Long-range Financial Plan (LRFP)
2018 & 2019
• Three per cent increase to compensation
• Two per cent net increase on purchased goods and purchased services
– this includes a five per cent increase to utilities
• No increase to training and consulting costs
Three-year operating budget forecast and drivers
47
2020
• Five per cent increase to administration
• Three per cent increase to supply, distribution and metering
Capital contributions
• In accordance with LRFP to meet reserve fund targets
• Projected FTE requests for Water Services based on regulatory driven program expansions for additional supply and distribution operators and related program funding
Three-year operating budget forecast and drivers
48
2017-20 budgets: operating
49
Tab 4, page 46
Item
2017
recommended
budget
2018
projected
2019
projected
2020
projected
Revenues ($30,450,655) ($31,997,700) ($33,511,400) ($35,129,698)
Expenditures $30,450,655 $31,997,700 $33,511,400 $35,129,698
Net budget
$0 $0 $0 $0
Full-time equivalents 65.0 65.0 65.0
65.0
Title/Position: Water Permit Monitoring Program
Type: Legislative
Budget impact: $395,600
Overview
• Permits to Take Water allow the City to use groundwater for its
municipal water supply
• Recent changes to permit monitoring requirements require
additional monitoring of the City’s well fields to ensure
sustainability and water quality
• No FTEs associated with expansion
Operating expansion
50
Tab 4, page 40
Title/Position: Source Water Protection Program Coordinator Type: Growth/Legislative
Budget impact: $0
Overview
• Coordinate building permit applications, development plan applications and
Committee of Adjustment submissions
• Under Section 59 of the Clean Water Act, Section 59 notices must be issued
for all development applications and building permits that are subject to the
Source Protection Plan
Operating expansion
51
Tab 4, page 44
Title/Position: Corporate Analyst: non-tax Type: Growth/Financial Stability
Budget impact: $109,500*
Overview
• To implement added analytical rigor to improves the city’s financial
integrity and sustainability
• Increase Finance capacity to sign-off on all Council reports as per audit
recommendation
• Fully dedicated to non-tax-supported City services
(Water, Wastewater, Courts, OBC and Stormwater)
Operating expansion
52
Tab 4, page 42 *Note: Expansion costs to be split between non-tax-supported departments
2017-2026 capital budget
53
Tab 4, page 48
Total
project cost
Development
Charges
Grants and
Subsidies
Capital
reserves
Growth $81,984,500 $60,794,200 $0.0 $21,190,300
Infrastructure
replacement $98,166,600 $7,318,000 $1,007,400 $89,841,200
Total capital
budget $180,151,100 $68,112,200 $1,007,400 $111,031,500
2017-26 Reserves and reserve funds projected balances
54
Tab 4, page 53
2017 Water and Wastewater financial indicators
55
Target
2017
predictions:
Water LRFP
Actuals
Water
2017
predictions:
Wastewater
LRFP
Actuals
Wastewater
Debt to total reserve ratio < 1:1 0.0:1 0.0:1 0.0:1 0.0:1
Operating reserves as a % of own
source revenue
8 - 10%
of
Revenues
8.0% 9.0% 8.0% 11.9%
Operating surplus ratio Positive Positive Positive Positive Positive
Asset consumption ratio 35% n/a 38.4% n/a 46.4%
Capital Reserves as a % of historical
asset value 2-3% 4.5% 8.9% 4.0% 8.6%
Capital Reserves as a % of asset
replacement value 2-3% 2.2% 2.2%
OUR SERVICE
• Initiate detailed cost of service study to evaluate true cost of water and wastewater services
OUR RESOURCES
• Complete treatment system upgrades at Burkes Well
• Construct Paisley-Clythe feeder main (third phase)
• Recoat and resurface Speedvale water tower
• Complete detailed engineering design for F.M. Woods Pumping Station
• Implement updated, Council-approved Water Efficiency Strategy
• Continue implementation of the Source Water Protection Plan
2017 initiatives
56
Tab 4, page 36
Wastewater Services
Tab 5
57
Wastewater treatment: process performance
58
$ increase/
decrease
% increase/
decrease
Compensation $85,140 1.7%
Purchased Goods $342,200 15%
offset by a decrease of
$123,600 (-6.4%) in small
tools and chemicals
Purchased services ($63,545) -1.7% Repairs and maintenance
Other transfers $18,775 2.1% GCRA Levy
Metering/billing/locates/
other staff chargebacks $328,050 10.4% Internal charges
Revenue
• Billable consumption: 0.8 per cent
Operating Budget
2017 major operating budget changes
59 Tab 5, page 58
• No contingency reserve transfer
• No stabilization reserve transfer
• Net expenditure increase of 3.9 per cent
– not including expansions and capital financing
• Expansions: increase of $54,800 – due to shared Finance staffing position
• Capital financing: increase of $500,000 (3.9%) – growth and renewal
Overall operating expenditures increase of $1,147,420 (3.9%)
2017 major operating budget changes
60
Tab 5, page 58
2017 recommended budget: operating
61
Tab 5, page 57
Item 2015 actuals 2016 approved
budget
Total 2017 recommended
budget
Yr/Yr change
Yr/Yr change
(%)
Revenues ($30,138,867) ($29,799,028) ($30,946,448) ($1,147,420) 3.9 Expenditures $30,138,867 $29,799,028 $30,946,448 $1,147,420 3.9 Net budget
$0
$0
$0
$0
0.0
Full-time equivalents 51.0 50.0 50.0
Assumptions
• Wastewater Services forecast
• Reflective of the approved Long-range Financial Plan (LRFP)
Capital contributions in accordance with LRFP to meet reserve fund targets
Three-year operating budget forecast and drivers
62
2018 2019 2020
Compensation 3.0% 3.0% 3.45%
Purchased goods 3.4% 3.5% 3.2%
Purchased services 1.35% 1.37% 3.6%
2017-2026 capital budget
63
Tab 5, page 61
Total
project cost
Development
Charges Grants Developer
Capital
reserves
Growth $105,737,000 $884,200 $0 $819,100 $35,033,800
Infrastructure
replacement $32,092,500 $308,600 $768,600 $0 $31,015,400
Total capital
budget $137,829,500 $192,800 $768,600 $819,100 $66,049,200
OUR SERVICE
• Update Wastewater Treatment and Biosolids Management Master Plan
• Continue digester cleaning program
OUR RESOURCES
• Continue generator purchase and installation program
• Continue wastewater treatment plan re-rating process
• Start management and capital programs review
• Continue innovative anammox treatment process, a first in Canada
• Continue biosolids storage project
2017 initiatives
64
Tab 5, page 55
Stormwater Services
Tab 6
65
Program overview
66
• Purpose:
– to protect people and property from flooding
– to protect the City’s water resources
• Infrastructure is in need of upgrades and repairs
Program overview
67
• 2013-15: Sustainable Funding Study
• March 2016: Council approves transition of program funding from
property tax to a fee-based service
• September 2016: Council approves the policies, draft Fees or
Charges Bylaw, establishment of reserves, and billing agent
retainer
Coming up
• November 3, 2016: Stormwater rate approval ($4/month)
• January 2017: billing begins (fee on Guelph Hydro bill)
• 2017: assessment of potential credit program
Timeline
68
Funding via property taxes by sector
Funding via ERU fee model by sector
69
30%
52%
18%
ICI Residential: detached Residential: attached
Rate highlights
44%
34%
22%
ICI Residential: detached Residential: attached
• The ERU fee model provides a balance between fairness, equity and ease of administration
Funding via ERU fee model by sector
70
Rate highlights
44%
34%
22%
ICI Residential: detached Residential: attached
• The ERU fee model provides a balance between fairness, equity and ease of administration
47%
42%
11%
ICI Residential: detached Residential: attached
Impervious area by sector
• The 2016 tax-supported budget has been adjusted removing $1.9 million from the tax base
– The City will be obligated to pay stormwater fees for municipally owned
properties in the approximate amount of $200,000
• The 2016 non-tax-supported budget adjusted adding $2.1 million to form the base budget for Stormwater Services
71
2016-2017 budget adjustment
Sustainable Funding Strategy
72
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
2017
2018
2019
2020
2021
An
nu
al
Bu
dg
et/
Reven
ue
Eq
uiv
ale
nt
Resid
en
tial
Un
it (
ER
U) M
on
thly
Rate
Interim to Sustainable - 5 years (Recommended option)
Stormwater fee comparison
73
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Ave
rage
An
nu
al C
ost
Guelph (recommended) Richmond Hill Aurora Waterloo St. Thomas Mississauga Kitchener London
Guelph sustainable at $76.20
Summary of rate and impact on average residential household
*Average impervious area of a residential property is 188 m2. 2017 rates will come into effect on January 1, 2017.
Stormwater rate change and forecast
74
Tab 6, page 70
2016 2017 2018 2019 2020
Average monthly residential
household stormwater
contribution
$2.36 $4.00 $4.60 $5.20 $5.80
Average residential annual
bill* $28.32 $48.00 $55.20 $62.40 $69.60
2017 recommended budget: operating
75
Tab 6, page 72
Item 2016 restated
budget
Total 2017 recommended
budget
Yr/Yr change
Yr/Yr change
(%)
Revenues ($2,116,600) ($4,219,000) ($2,102,400) 99.3 Expenditures $2,116,600 $4,219,000 $2,102,400 99.3 Net budget
$0
$0
$0
0.0
2017-20 budgets: operating
76
Tab 6, page 73
Item
2017
recommended
budget
2018
projected
2019
projected
2020
projected
Revenues ($4,219,000) ($4,819,000) ($5,419,000) ($6,024,900)
Expenditures $4,219,000 $4,819,000 $5,419,000 $6,024,900
Net budget
$0
$0 $0 $0
2017-2026 capital budget
77
Tab 6, page 74
Total
project cost
Development
Charges
Grants and
Subsidies
Capital
reserves
Growth $860,000 $708,000 $0 $152,000
Infrastructure
replacement $39,835,000 $18,700 $1,496,500 $38,319,800
Total capital
budget $40,695,000 $726,700 $1,496,500 $38,471,800
Capital Planning and Programs of Work
78
Integrated capital planning
79
Challenge
• Review of non-tax-supported budget in isolation of
tax-supported budget
– Cutting projects in one budgets results in approved funding from the
second budget being unusable
– Leads to unspent capital
Opportunity
• Corporate asset management system highlights connection
between projects in a transparent manner
Challenge and opportunity
80
• Evidence-based – based on factual or estimated data, documented procedures and a
business case
• Collaboratively developed – based on consultation with multiple departments and front-line staff
• Prioritized – ensures the most critical projects are proposed at the right time
Capital budget key principals
81
2017-2026 reserves and reserve fund projected balances
82
$0
$20
$40
$60
$80
$100
$120
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Millio
ns
Water Services Capital Reserve
Current Sustainable + Backlog
2017-2026 reserves and reserve fund projected balances
83
$0
$20
$40
$60
$80
$100
$120
$140
$160
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Millio
ns
Wastewater Services Capital Reserve
Current Sustainable + Backlog
Program of work
Benefit Risk 2017 non-tax investment
page
Downtown Infrastructure Renewal
• maintain and support the redevelopment of properties in the area
• defers escalating costs • stall ongoing
development activities and future interests
$4,126,000 84
Full Corridor Reconstruction - Growth
• ensure that levels of service are being maintained
• risks of flooding or backups
• likelihood of underground infrastructure failure
$2,290,000 89
Full Corridor Reconstruction - Renewal
• ensure that levels of service are being maintained
• likelihood of underground infrastructure failure
$4,612,000 95
Stormwater Collection and Storage & Filtration
• protect streams and rivers
• mitigate flooding • comply with
MOECC regulations
• harm to property and human life
• non‐compliance with the MOECC which can result in charges and/or fines
$7,265,000 101
Programs of work
84
Tab 7
Program of work
Benefit Risk 2017 non-tax investment
page
Wastewater Collection
• satisfy capacity requirement of the system
• likelihood of underground infrastructure failure
$1,150,000 104
Wastewater Plant & Equipment
• long-term
reliability of
assets and
capacity
• unexpected downtime
• Replacement parts are not
readily available
$1,055,000 107
Water Distribution Network
• proactively minimizing risks and maintain levels of service
• interruptions in service delivery
• reduction in water quality • additional maintenance
costs and time • regulatory non-compliance
$0 110
Water Plant & Equipment
• provide safe and reliable source of water
• interruptions in service delivery
• reduction in water quality • regulatory non-compliance
$12,307,000 113
Programs of work
85
Tab 7
Total 2017 investment: $6,598,000 Non-tax 2017 investment: $4,126,000
Overview • linear infrastructure downtown is some of the oldest in Guelph
• continued need to address renewal to maintain and support the
redevelopment of properties in the area
Risk
• delaying the investment simply defers escalating costs and has the
potential to stall ongoing development activities and future interests
Downtown Infrastructure Renewal
86
Tab 7, page 84
Downtown Infrastructure Renewal
87
2017 2018 2019 2020-2026 Total
Roads &
Bridges $2,472,000 $3,701,000 $588,000 $24,619,000 $31,380,000
Stormwater $319,000 $2,058,000 $25,000 $948,000 $3,350,000
Wastewater $2,121,000 $1,047,000 $45,000 $1,235,000 $4,448,000
Water $1,686,000 $573,000 $50,000 $1,483,000 $3,792,000
Total $6,598,000 $7,379,000 $708,000 $28,285,000 $42,970,000
Financial investment
Downtown Infrastructure Renewal
88
Budget amount Funding source
Tax-supported $2,472,000 Tax
Grants
$1,165,000
$1,307,000
Non-tax-supported $4,126,000 Rate
DC
$4,067,000
$59,000
Total $6,598,000 $6,598,000
Operating impacts There are no known operating impacts at this time.
2017 Budget approval and funding
Total 2017 investment: $3,690,000 Non-tax 2017 investment: $2,290,000
Overview • To optimize the project list to ensure that levels of service are being
maintained
Risk
• Insufficient infrastructure capacity to support growth
• Increased risks of flooding or backups (in the case of wastewater and stormwater)
• Increased likelihood of underground infrastructure failure – contamination of the drinking water supply
– water service interruptions
– sink holes, vehicle damage (due to pot holes), property damage, sewer backups, or basement flooding
Full Corridor Reconstruction, Growth
89
Tab 7, page 89
Full Corridor Reconstruction, Growth
90
2017 2018 2019 2020-2026 Total
Roads $1,400,000 $4,998,000 $3,988,000 $65,376,000 $75,762,000
Stormwater $814,000 $740,000 $11,429,000 $12,983,000
Water $756,000 $1,491,000 $1,422,000 $17,553,000 $20,222,000
Wastewater $1,534,000 $1,159,000 $1,639,000 $16,882,000 $21,214,000
Total $3,690,000 $8,462,000 $7,789,000 $111,241,000 $131,182,000
Financial investment
Full Corridor Reconstruction, Growth
91
Budget amount Funding source
Tax-supported $1,400,000
Grant
Tax
DC
$826,000
$317,000
$257,000
Non-tax-supported $2,290,000 Rate
DC
$1,696,000
$594,000
Total $3,690,000 $3,690,000
Operating impacts There are no known operating impacts at this time.
2017 Budget approval and funding
Total 2017 investment: $7,009,800 Non-tax 2017 investment: $4,612,000
Overview • To optimize the project list to ensure that levels of service are being
maintained
Risk
• Insufficient infrastructure capacity to support growth
• Increased likelihood of underground infrastructure failure – contamination of the drinking water supply
– water service interruptions
– sink holes, vehicle damage (due to pot holes), property damage, sewer backups, or basement flooding
Full Corridor Reconstruction, Renewal
92
Tab 7, page 95
Full Corridor Reconstruction, Renewal
93
2017 2018 2019 2020-2026 Total
Roads $2,398,000 $334,000 $2,936,000 $14,620,000 $20,288,000
Stormwater $811,000 $322,000 $492,000 $3,686,000 $5,311,000
Water $2,207,000 $961,000 $6,064,000 $6,059,000 $15,291,000
Wastewater $1,594,000 $648,000 $542,000 $3,076,000 $5,860,000
Total $7,010,000 $2,265,000 $10,034,000 $27,441,000 $46,750,000
Financial investment (‘000s)
Full Corridor Reconstruction, Renewal
94
Budget amount Funding source
Tax-supported $2,398,000
Tax
Grants
CAR Reserve
$1,665,000
$550,000
$183,000
Non-tax-supported $4,612,000
Rate
Grants
CAR Reserve
$2,341,000
$2,147,000
$124,000
Total $7,010,000 $7,010,000
2017 Budget approval and funding (‘000s)
Operating impacts There are no known operating impacts at this time.
Total 2017 investment: $7,265,000 Non-tax 2017 investment: $7,265,000
Overview • To protect the health of our streams and rivers, mitigating flooding in
extreme weather
• To comply with regulations set by the Ministry of the Environment and
Climate Change (MOECC)
Risk
• assets deteriorating to a state of disrepair
• ceasing to meet the performance expected
• potentially causing harm to property and human life
• non‐compliance with the MOECC which can result in charges and/or fines
Stormwater Collection and Storage & Filtration
95
Tab 7, page 101
Stormwater Collection and Storage & Filtration
96
2017 2018 2019 2020-2026 Total
Collection $375,000 $580,000 $955,000 $3,755,000 $5,665,000
Storage &
Filtration
$6,890,000 $500,000 $1,080,000 $3,810,000 $12,280,000
Total $7,265,000 $1,080,000 $2,035,000 $7,565,000 $17,945,000
Financial investment
Stormwater Collection and Storage & Filtration
97
Budget amount Funding source
Tax-supported $0 Tax
Own revenue
$0
$0
Non-tax-supported $7,265,000
Rate
Grants
CAR reserve
DC
$633,000
$4,875,000
$1,625,000
$132,000
Total $7,265,000 $7,265,000
2017 Budget approval and funding (‘000s)
Operating impacts There are no known operating impacts at this time.
Total 2017 investment: $1,150,000 Non-tax 2017 investment: $1,150,000
Overview
• To satisfy capacity requirement of the system by:
– Optimizing existing systems
– increasing capacities of existing systems
– reducing water loss
– increasing water conservation
– protecting the natural environment
– enhancing asset management
Wastewater Collection
98
Tab 7, page 104
Wastewater Collection
99
2017 2018 2019 2020-2026 Total
Collection
(Growth)
$400,000 $800,000 $1,750,000 $8,250,000 $11,200,000
Collection
(Renewal)
$750,000 $550,000 $570,000 $5,246,000 $7,116,000
Total $1,150,000 $1,350,000 $2,320,000 $13,496,000 $18,316,000
Financial investment
Wastewater Collection
100
Budget amount Funding source
Tax-supported $0 Tax
Own revenue
$0
$0
Non-tax-supported $1,150,000 Rate
DC
$950,000
$200,000
Total $1,150,000 $1,150,000
2017 Budget approval and funding
Operating impacts There are no known operating impacts at this time.
Total 2017 investment: $12,307,300 Non-tax 2017 investment: $12,307,300
Overview • To provide long-term reliability of assets and capacity
Risk
• Unexpected downtime
• Replacement parts are not readily available
Wastewater Plant & Equipment
101
Tab 7, page 107
Wastewater Plant & Equipment
102
2017 2018 2019 2020-2026 Total
Treatment & Storage,
growth
$851,000 $7,350,000 $3,997,000 $60,506,000 $72,704,000
Treatment & Storage,
renewal
$204,000 $804,000 $804,000 $6,870,000 $8,886,000
Total $1,055,000 $8,154,000 $4,801,000 $67,580,000 $81,590,000
Financial investment
Wastewater Plant & Equipment
103
Budget amount Funding source
Tax-supported $0 Tax
Own revenue
$0
$0
Non-tax-supported $1,055,000 Rate
DC
$438,000
$617,000
Total $1,055,000 $1,055,000
2017 Budget approval and funding
Operating impacts There are no known operating impacts at this time.
Total 2017 investment: $0 Non-tax 2017 investment: $0
Overview • Proactively minimizing risks and maintaining levels of service through
renewal, capacity enhancements, and improving security of supply to the
water distribution network
Risk
• Interruptions in service delivery, reduction in water quality, additional
maintenance costs and time, and potential regulatory non-compliance
with the Safe Drinking Water Act
Water Distribution Network
104
Tab 7, page 110
Water Distribution Network
105
2017 2018 2019 2020-2026 Total
Distribution
network, growth $0 $100,000 $184,000 $12,553,000 $12,837,000
Distribution
network, renewal $0 $0 $1,732,000 $6,177,000 $7,909,000
Total $0 $100,000 $1,916,000 $18,730,000 $20,746,000
Financial investment
Water Distribution Network
106
Budget amount Funding source
Tax-supported $0 Tax
Own revenue $0
Non-tax-supported $0 Rate
DC $0
Total $0 $0
2017 Budget approval and funding (‘000s)
Operating impacts There are no known operating impacts at this time.
Total 2017 investment: $12,307,300 Non-tax 2017 investment: $12,307,300
Overview
• To proactively add additional supply
• To renew existing systems
Risk
• interruptions in service delivery; reduction in water quality
• additional maintenance costs and time; insufficient servicing capacity
• potential regulatory non-compliance
Water Plant & Equipment
107
Tab 7, page 113
Water Plant & Equipment
108
2017 2018 2019 2020-2026 Total
Supply, Treatment
& Protection (Growth)
$1,930,000 $15,926,000 $6,126,000 $43,884,000 $70,385,000
Supply, Treatment
& Protection (Renewal)
$7,711,000 $12,665,000 $6,305,000 $24,958,000 $49,819,000
Conservation &
Efficiency
$2,666,000 $586,000 $571,000 $4,134,000 $7,257,000
Total $12,307,000 $29,177,000 $13,002,000 $72,976,000 $127,461,000
Financial investment
Water Plant & Equipment
109
Budget amount Funding source
Tax-supported $0 Tax
Own revenue
$0
$0
Non-tax-supported $12,307,000 Rate
DC
$7,831,000
$4,476,000
Total $12,307,000 $12,307,000
Department Item Year Cost Cost type
Water Services Annual
Operating
(Ongoing)
2018 $94,000 New Maintenance Staff
Salary/Benefits – Burkes
Water Services Annual
Operating
(Ongoing)
2018 $67,000 Operational Costs
(Energy) for New
Treatment System -
Burkes
Operating Impacts
2017 Budget approval and funding
Recommendations
110
That Report No. CS-2016-68 titled 2017 Non-Tax Supported Operating and Capital Budgets be referred to the November 3, 2016 Council Budget meeting.
2016 2017 Change
Water volume charge $/cubic metre $1.59 $1.67 $0.08
Water basic charge $/day $0.26 $0.26 $0.00
Wastewater volume charge $/cubic
metre $1.73 $1.80 $0.07
Wastewater basic charge $/day $0.32 $0.32 $0.00
Stormwater service fee - $/month $2.36 $4.00 $1.64
2017 Water, Wastewater and Stormwater Rates and Fees
111
Recommended