AGENDA ITEM NO: 8.3
UNIVERSITY COUNCIL
PLANNING AND PRIORITIES COMMITTEE
FOR INFORMATION ONLY
PRESENTED BY:
Jay Kalra, Chair, Planning and Priorities Committee
DATE OF MEETING:
May 27, 2010
SUBJECT:
Annual Capital Plan 2010-11
COUNCIL ACTION:
For information only
CONTEXT AND BACKGROUND:
The first iterations of the University of Saskatchewan Annual Capital Plan and MultiYear Capital Plan (2008-09 – 2011/12) were approved in June, 2009, by the Board of
Governors. On May 11, 2010, the Board of Governors approved the Annual Capital Plan
for 2010-11.
The Multi-year Capital Plan (2008-09 – 2011/12) provides the base information for the
commitment within the Second Integrated Plan on Infrastructure and Capital Resources
by providing a comprehensive overview of the considerations relevant to capital
planning: buildings and space, land, infrastructure, including municipal structure,
information and communication technology requirements, equipment, and renewal and
operating costs. Within the framework provided by the multi-year plan, which focuses
on the principles and components of capital planning, the Annual Capital Plan provides
the specifics of the capital priorities and projects for the coming year. Within the Annual
Capital Plan, the Annual Capital Allowance addresses the university’s growing need for
capital renewal and replacement, deferred maintenance, information and communication
technology and capital equipment renewal and replacement.
DISCUSSION SUMMARY
The ad-hoc Capital Subcommittee of the Planning and Priorities Committee reviewed the
Annual Capital Plan on April 8, 2010, to provide advice in its development, followed by
discussion and review of the plan by the full Planning and Priorities Committee at its
meeting on April 14, 2010.
The Annual Capital Plan outlines the priority capital projects and programs for the
upcoming year based on funding available. In addition to the commitments towards new
buildings under construction, other priorities within the plan include the investment in the
university’s classroom space in support of the student experience and the campus core
revitalization.
As the provincial government budget provided an annual capital grant of approximately
$12.0 million for the 2010-11 budget year, a significant reduction of almost $8.0 million,
the Annual Capital Allowance within the plan addresses the means by which the
university will manage the reduction. Although the reduction in capital funding is
expected to be a short-term decrease, emphasis on the university’s capital needs is
intended within the 2011/12 Operations Forecast, and early discussions with the
committee have already taken place in this regard.
The issue of deferred maintenance continues to remain an area of primary concern, and
the Planning and Priorities Committee supports increasing the percentage allocation from
the Annual Capital Allowance in support of the university’s deferred maintenance needs.
The plan identifies $604 million in deferred maintenance (reduced from $620 million in
2009); of which $250 million is deemed critical. In this respect, the university, like other
post-secondary and public institutions across North America, is faced with ageing
buildings and declining capital infrastructure.
To more closely identify capital needs, capital profiles for all planning entities are
intended as part of the development of the Multi-Year Capital Plan for the Third
Integrated Plan.
ATTACHMENTS:
Annual Capital Plan 2010-11 (pages 1 – 20 and Appendix A).
The text of the complete capital plan and additional information on the university’s Major
Capital Planning Process, including the Multi-Year Capital Plan (2008-09 – 2011/12) can
be found online at:
www.usask.ca/ip/inst_planning/major_planning/capital_planning/index.php
The status of individual projects can be found at:
www.usask.ca/ip/inst_planning/major_planning/capital_planning/progress_report.php
Clicking on the individual project name links to project specifics, such as overall
projected cost, project approval stage, executive sponsor(s), and visual representations.