2017 Capital Planning Education and Training

Workshop

Tuesday, September 20, 2016 Richmond Hill Centre for the Performing Arts – Plaza Suite

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Welcome !

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Objective: Financial Sustainability

Environment Community

Financial

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Today

Walk through the changes to 10 year capital plan and funding implications Review reserve funds status and forecast Begin revenue discussions (partnerships and

naming rights) Discuss Civic Precinct and CEEV funds

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Tax Supported Repair and Replacement Council supported a “pay-as-you-go” strategy Special levy for R&R capital ( $15 per year in 2016) Phasing capital plan to reduce average annual

expenditures Target $18M average annual spend

More work to be done Examine service levels New revenue sources to offset expenditures Other strategies (i.e. budget for asset replacement with the

addition of “growth capital”)

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The Day’s Agenda Agenda Topic Presenter Duration

Welcome and Purpose of Workshop Mayor Barrow 10 minutes

Introduction to Workshop and Context Neil Garbe 10 minutes 2017 Draft Capital Budget and 10 Year Capital Forecast David Dexter 70 minutes

Break Everyone 15 minutes

Funding Implications David Dexter 45 minutes

Lunch Break – 120 minutes

Partnerships and Naming Rights Darlene Joslin 60 minutes

Break Everyone 15 minutes

Civic Precinct Discussions David Dexter 60 minutes

Closing Remarks – 15 minutes

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Capital Budget and Forecast Linked to Strategic Plan with futuristic view Capital budget covers longer time frame than one year Forecast is long term capital planning for next 10 years Two types of capital assets: Existing Assets – repair, replace, or upgrade of

assets/infrastructure the Town already owns Growth Assets – new assets constructed or acquired to

serve newly developed areas of the Town

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Capital Approval Process Capital Workshop • Special Council Meeting – Ten-Year Capital

Planning Education and Training Presentation

Annual Capital Budget • November 1, 2016 – Budget Committee

of the Whole

Ten-Year Capital Forecast • November 1, 2016 – Budget Committee

of the Whole

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Capital Investments

Lake Wilcox Waterfront Promenade

Bond Crescent – Rural to Urban Terry Fox Tribute at Ransom Parkette

Lake Wilcox Splash Pad Philips Ridge Park Rouge Crest Park

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Capital Forecast Trend

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Capital Budget Strategy June 28, 2016 BCW Recommendation That staff present a 2017 Draft Capital Budget and Ten-

Year Forecast that: Aligns with the Town’s Strategic Plan – Phase 3 Implementation

Plan Updates the timing of growth related projects in the Ten Year

Capital Forecast Targets a cap on the Tax Supported Capital Program level at an

average of $18 million per year as part of the Pay As You Go (PAYG) approach

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2017 Significant Projects ($ millions)

• Bayview Ave Sidewalk & Illumunination - Stouffville/Bloomington ($1.5)

• Doncrest Road Reconstruction ($0.6) Roads

• Lake Wilcox Youth Area ($4.9) Parks

• Civic Precinct ($6.5) • New Fire Station Land ($1.5) • Operations Centre Master Plan Phase II Design ($1.4) • East Beaver Creek Heat Pump Replacement ($1.3)

Facilities

• Castle Rock Drive, Weldrick Road West to Avenue Road ($1.8)

Water & Wastewater

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2017 Significant Projects ($ millions)

• Flood Remediation – Land ($6.2) • Elgin Mills Greenway: Elgin West Pond retrofit ($1.6) and

Upper East Don Valleyland restoration ($2.0)

Stormwater Management

• Integrated Financial System, Enterprise Resource Planning ($8.6)

• Planning Regulatory Management System ($2.0) • Customer Relationship Management System ($0.9)

Information Technology

• Parks, Road Overlay, Sediment Removal from stormwater facilities

• Fleet & Equipment Replacement (Roads, Parks, Fire Services, Recreation Services, Water Meters)

• Library Collection Development • Computer Hardware & Software Replacement

Annual Programs

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2017 Capital Program Funding

$18.6

$20.7

$19.8

$3.3

Funding - $62.5 Million

Tax SupportedOther / Rate SupportedGrowthExternal

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2018 – 2019 Significant Projects ($ millions)

• Coon’s Road Reconstruction, Humberland to Yonge ($4.9) • Cynthia Crescent Reconstruction, Coon's to Coon's ($2.8) • 19th Avenue Sidewalk & Illumination, Bayview to Leslie ($1.3) • Leslie Street Lake to Lake Route ($1.7)

Roads

• Revitalization: Bradstock Park ($3.2), King’s College Park ($1.0) • North Leslie Community Park West ($2.3), David Dunlap Play Area ($1.5) • Oxford/Direzze Trail ($1.0)

Parks

• Central Library Expansion, Design and Construction ($10.7, 2018 - 2019) • Indoor Town Wide Rec Facility, Richmond Green Soccer Land ($4.3, 2019) • Civic Precinct ($14.4, 2018 - 2019) • East Beaver Creek Accommodation ($1.2, 2018 - 2019) • Operations Centre Master Plan Phase II Construction ($11.2, 2018)

Facilities

• Elm Grove, Parker to Yonge ($1.0, 2018) • Trench Street, Major Mackenzie Drive to Mill Street ($0.8, 2018 - 2019)

Water & Wastewater

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2018 – 2019 Significant Projects ($ millions) • Flood Remediation ($4.3, 2018 - 2019) • Beaver Creek Pond B retrofit ($1.3, 2018 - 2019)

Stormwater Management

• 404 Flyover North of 16th Land ($1.6, 2019) • Urban MESP Wastewater System Improvements ($1.4, 2018 -

2019)

Development Engineering

• Integrated Financial System, Enterprise Resource Planning ($5.0, 2018)

Information Technology

• Parks, Road Overlay, Sediment Removal from stormwater facilities

• Fleet & Equipment Replacement (Roads, Parks, Fire Services, Recreation Services, Water Meters)

• Library Collection Development • Computer Hardware & Software Replacement

Annual Programs

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$38.8

$32.7

$53.2

$2.5

Funding - $127.2 Million

Tax SupportedOther / Rate SupportedGrowthExternal

2018 – 2019 Capital Program Funding

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2020 – 2027 Significant Projects ($ millions)

•2020: Amold Crescent ($1.8), Elm Grove Ave ($2.7), Blackforest Drive ($2.5) •2020 – 2021: Maple Grove Ave ($3.1), Rockport Crescent ($3.3), Harris Avenue ($3.2) •2021 – 2022: Sugar Maple Lane & Court ($1.8), Westwood Lane ($1.1) •2022 – 2023: Rosegarden Crescent ($2.5), Oxford Street ($1.4) •Beaufort Hills Road ($2.5, 2023 – 2024) •Aubrey Avenue ($1.7, 2024 – 2025) •PCMP ($4, 2021 – 2026)

Roads

•Revitalization: Mill Pond ($6.5, 2020 – 2024), Town Park ($4.3, 2021) •2022: Lake Wilcox Park Turnaround Area Adjacent to Canoe Club ($2.4), Richmond

Green North ($2.6) •2023 Revitalization: Pine Farm ($2.6), Lennox Park ($2.1), Unity Park ($2.1) •Carville Park Revitalization ($1, 2026), Bayview Hill Park Revitalization ($4, 2026 –

2027) •North Leslie Parks ($11, 2020-2023), West Gormely Parks ($3, 2020, 2022), DDO

Trails, Picnic Area & Entrances ($5.5, 2020 – 2021) •Rawlinson / Perryman ($4.5, 2024, 2026), Miles Hill Parkette ($2.1, 2024), Greatlands

Developments Park ($5.1, 2025)

Parks

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2020 – 2027 Significant Projects ($ millions)

• Civic Precinct ($155.6, 2020 - 2024) • Indoor Town Wide Recreational Facility - Richmond Green Soccer ($49,

2020 - 2021) • Tom Graham Arena Twinning ($15.6, 2020 - 2021) • New Fire Station ($6.1, 2020 - 2021) • North Leslie Multi-Purpose Recreational Facility - CC, Pool, Fitness, Twin

Pad Arena ($66.3, 2021 – 2023) • New Richmond Hill Centre Library ($7.9, 2022 – 2025)

Facilities

• Bathurst Street (Region), Carrville Road to Elgin Mills Road ($4.5, 2020 – 2021), Muirhead Crescent/Stouffville Road ($3.1, 2020 - 2021)

• Bayview Avenue, Hwy 7 to Major Mackenzie Road ($2.2, 2019 - 2020) • 16th Avenue, Yonge Street to Leslie Street ($1.4, 2022- 2023) • Carville Road, Bathurst Street to Yonge Street ($2.2, 2024 – 2025) • King Road (Region), Bond Crescent to Yonge Street ($1.2, 2022) • Elgin Mills Road West , Bathurst St. to Regent St. ($1.1, 2021- 2022) • Taylor Mills Drive North and South ($2.3, 2021 – 2024)

Water & Wastewater

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2020 – 2027 Significant Projects ($ millions)

• Don Head East in 2020 - 2021: Don Head East Pond retrofit ($4.4) and Upper East Don Valleyland restoration project ($1.3)

• Twickenham Pond retrofit ($1.8, 2021- 2022) • Beaver Creek Pond A retrofit ($5.3, 2024 -2025)

Stormwater Management

• DDO Woodlot Restoration and Implementation Plan ($1.4, 2021)

Environmental Strategy

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2020 – 2027 Significant Projects ($ millions)

• Flood Remediation ($22.4, 2020 - 2021) • 404 Flyover North of 16th Construction ($12.4, 2020 - 2021) • 404 Flyover North of Elgin Mills Land & Construction ($17.3, 2022 –

2024) • Weldrick Road East & West Road Widening/Grade Separation

($19.1, 2024 – 2027) • Newkirk Road Widening ($12.4, 2027) • East and West Beaver Creek Road Widening ($16.3, 2024 – 2027) • Urban MESP Wastewater System Improvements ($5.7, 2020 – 2027)

Development Engineering

• Parks, Road Overlay, Sediment Removal from stormwater facilities • Fleet & Equipment Replacement (Roads, Parks, Fire Services,

Recreation Services, Water Meters) • Library Collection Development • Computer Hardware & Software Replacement

Annual Programs

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$175.2

$196.2 $282.9

$66.5

Funding - $720.8 Million

Tax SupportedOther / Rate SupportedGrowthExternal

2020 - 2027 Capital Program Funding

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Strategic Plan Phase 3 Implementation Items – Included

Official Plan Implementation Comprehensive Zoning By-Law Public Realm Master Plan

Implementation Environment Strategy

Implementation

Civic Precinct Lake Wilcox Park Youth Area Trails & Cycling Infrastructure Valleyland Restoration New and Restored Parks David Dunlap Observatory

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Ten Year Capital Forecast Comparison

Funding Source Categories

2016 Capital Forecast

2017 Capital Forecast

Changes

Tax Supported Capital $230,026,094 $213,936,115 $(16,089,980) Growth Capital $251,557,927 $336,159,641 $84,601,714 Other/Rate Supported Capital $203,014,603 $228,900,879 $25,886,276 External Source Capital $57,806,950 $68,999,100 $11,192,150 Total $742,405,574 $847,995,735 $105,590,161

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Capital Plan Changes – Tax Supported

Asset Management Facilities Repair & Replacement -

$8.5 million decrease Parks Repair & Replacement - $15 million decrease IT $3.7 million increase (increased ERP/decreased R&R) Library $945,000 increase Added projects for the Region of York’s Transportation

Master Plan (sidewalks & illumination)

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Capital Plan Changes – Growth

Flood Remediation, $ 33 million addition Updated the cost of town-wide engineering projects Civic Precinct, $9.6 million increase 404 Flyover Land acquisitions, $8 million addition

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Capital Plan Changes – Other Rate Supported

Implemented a Ten Year Watermain repair & replacement

program - $10 million addition Urban MESP Wastewater System Improvements, $5

million addition

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Funding Implications

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Capital Reserves and Reserve Funds Established by Council to assist with long term

financial stability and financial planning Funds set aside for future replacement or

acquisition of new assets Internal and external funding sources (operating

budget contributions, annual surplus, investment income, DCs, government grants)

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Major Funding Sources for Capital

Tax Supported

Rate Supported

Federal Gas Tax

Proceeds from Hydro Reserve Funds

Existing Development Charges

CIL of Parkland

Federal Gas Tax

Growth

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Capital Forecast Financial Implications Based on the 2017 Draft Capital Budget and 10 Year

Capital Forecast: Tax Supported Capital Reserve Funds (R&R and Cash to

Capital) extended to 2027 Growth Capital totaled $336 million funded from Development

Charges Reserve Funds Other Capital Reserve Funds totaled $228 million from

Water/Stormwater rates, Federal Gas Tax, CIL of Parkland Debt financing may be required to fund capital projects and

the unfunded portion of Civic Precinct (already borrowing internally for LED Lights Phase 2 Conversion Project)

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Capital Asset Sustainability Strategy Pay As You Go (PAYG) Capital approach Paying for existing/replacement capital based on prioritized needs Preserving reserve funds to achieve long term fiscal sustainability Optimal contribution target equal anticipated costs of the Tax

Supported Capital Asset Program

Steps to move towards PAYG Increase annual contribution in the operating budget

Council approved equivalent of 1% of a tax rate each year until 2025 Incremental increases from $7.9 million to $18.0 million

Cap annual Tax Supported Capital Asset Program Average annual expenditures in 10 year forecast decreased from $23

million to $21.6 million ($20.1 million for 2017 to 2019)

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Tax Supported Capital

(140.00)

(120.00)

(100.00)

(80.00)

(60.00)

(40.00)

(20.00)

-

20.00

40.00

60.00

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

2017 to 2027 Expenditures, Contribution and RF Impact

2016 - Reserve Fund Balance

2017 - Reserve Fund Balance

2016 10 Y Forecast

2017 10 Y Forecast

2017 Contribution

2016 Contribution

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Growth Capital

(150.00)

(100.00)

(50.00)

-

50.00

100.00

150.00

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

2017 to 2027 Expenditures and RF Impact

DC Reserve Balance

Town Wide Engineering

Public Works

General Government

Fire

Library DC

Indoor Recreation

Outdoor Recreation

*Next Development Charges Update in 2019 34

Other Capital: Federal Gas Tax

(6.00)

(4.00)

(2.00)

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

2017 to 2027 Expenditures and RF Impact

Reserve Balance

Others

Civic Precinct

ERP Project

New RH Library

Central Library Expansion

North Leslie Multi-PurposeRecreational FacilityRichmond Green Soccer

Tom Graham Arena Twinning

Sidewalk &Trails/Illumination

Facilities - Asset Management

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Other Capital - Water/Wastewater

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

2017 to 2027 Expenditures and RF Impact

Reserve Balance

Watermains/Sanitary Sewers

Others

Watermeters

UMESP

*Water & Wastewater Financial Plan Update currently underway

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Other Capital – Stormwater

(20.00)

(15.00)

(10.00)

(5.00)

-

5.00

10.00

15.00

2017 2018 2019 2020 2021 2023 2024 2025 2026 2027

2017 to 2027 Expenditures and RF Impact

Reserve Balance

Others

Sediment Removal

Flood Remediation

Valleylands

SWM

Storm Sewers

*Stormwater Management Financial Plan Update currently underway

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Other Capital - Cash-in-lieu of Parkland

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

2017 to 2027 Expenditures and RF Impact

Parkland Acquisiiton Estimate

Other

Civic Precinct

Parks

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Hydro Reserve Funds Ecological Legacy (2016 projected ending balance: $2.97 mil.)

Funding for Community Stewardship Program Proposed Strategy: Protect and restore principal balance of $6 million and

use interest only for Community Stewardship Program Comm. Enhancement & Economic Vitality (2016 projected ending balance:

$52.1 mil.) Earmarked funding source for Civic Precinct project: $65.2 mil Expected investment return will ideally reach $65.2 mil. by 2021

Strategic Rapid Transit (2016 projected ending balance $8.96 mil.) For long range strategic rapid transit projects which are multi-jurisdictional in

nature Potential funding source for Town’s portion of grade separation related to All

Day GO Service

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