BUDGET 2016
Town of Oakville
2016 – 2025 Capital Budget
and Forecast
Budget Committee
October 5, 2015
Budget Committee – October 5, 2015
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BUDGET 2016
Agenda
• Election of Budget Chair
• 2016 to 2025 Capital Forecast and Financing
Plan
– Presentation by Nancy Sully, Deputy Treasurer, Director of
Financial Planning
Budget Committee – October 5, 2015
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BUDGET 2016
2016 Draft Capital Budget and Long
Term Financial Forecast
• Key financial planning tool
• Sets the financial roadmap to achieve town’s
strategic objectives
• Allows for evaluation of current decisions on
future years
– Impact on tax rates, reserves and reserve funds, and
debt levels
Budget Committee – October 5, 2015
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BUDGET 2016
Operating and Capital Budgets
Not Independent
Operating
Budget
-Capital Levy
-Contributions to
reserves
-Affordability of capital
impacts
Budget Committee – October 5, 2015
Capital Budget
-Operating cost of new
facilities
-Debt charges
-Future replacement
provisions
BUDGET 2016
2016 Capital Budget and Long Term
Financial Forecast
• Fiscally sustainable
• Ensures sufficient funding to maintain existing
assets and plan for the future
• Reserve balances maintained at appropriate
levels
• Financial indicators remain positive
• Limited debt financing
Budget Committee – October 5, 2015
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BUDGET 2016
Long Term Financial Forecast
• Forecast includes the outcomes of many financial
planning initiatives
–
–
–
–
Master Plans
Land Use Planning Studies
Infrastructure renewal requirements
Development Charges Background Study
• Includes not only capital plan but also:
– capital driven operating costs
– reserve and reserve fund balances
– debt levels
Budget Committee – October 5, 2015
BUDGET 2016
Capital Financing Policies &
Assumptions
• Debt repayment levels within Council approved guideline
• Outstanding debt to reserve ratio maintained at 1:1 or
better
• 1% capital levy continues throughout forecast
• Growth projects aligned with anticipated development
• DC reserve funds return to positive position
• DC supported debt capped at 25% of average collections
• Infrastructure renewal reserves to support life cycle
replacement of assets
Budget Committee – October 5, 2015
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BUDGET 2016
Draft 10 Year Capital Forecast
• Forecast divided into 5 components:
–
–
–
–
–
Infrastructure Renewal
Growth
Strategic Priorities
Community Enhancements
Enterprise Initiatives
Budget Committee – October 5, 2015
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BUDGET 2016
Draft 10 Year Capital Forecast
($ Millions)
Classification
Infrastructure Renewal
2016
$
42.4
Total
$
446.3
Growth
26.9
413.2
Strategic Priorities
26.4
86.9
Community Enhancements
2.5
62.8
Enterprise Initiatives
1.6
12.8
99.8
$ 1,022.0
Total
Budget Committee – October 5, 2015
$
9
BUDGET 2016
10 Year Capital Plan by Category
200.0
180.0
160.0
$123.7
140.0
$ Millions
120.0
$112.3
$117.4
$105.4
$99.8
$94.2
$97.1
$94.6
$91.6
100.0
$86.0
80.0
60.0
40.0
20.0
0.0
2016
2017
Infrastructure Renewal
Budget Committee – October 5, 2015
2018
Growth
2019
2020
Strategic Priorities
2021
2022
2023
2024
Community Enhancements
2025
Enterprise Initiatives
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BUDGET 2016
Infrastructure Renewal
Funding Sources
Highlights
• Road Preservation
Program - $96.5M
Equipment
Reserves
20%
• Vehicle & Equipment
Replacements $100.2M
• Facility Renewal $72.2M
Reserve Funds
(Parkland & Gas
Tax)
12%
Building
Maintenance
Reserve Fund
9%
• Park & Trail
Rehabilitation $44.2M
• Road & Bridge
Improvements $42.7M
Capital
Reserves
14%
Capital Levy
45%
Budget Committee – October 5, 2015
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BUDGET 2016
Growth
Highlights
Funding Sources
External
Revenues
13%
• Kerr St. Grade
Separation - $42M
• New Vehicles and
Equipment - $43.1M
Reserve
Funds
1%
Capital Levy
15%
• North Operations Depot
Phase 2 - $17.6M
• Sixteen Mile CC and
Library (design) $12.6M
• New Parks and
Parkettes - $25.9M
Gas Tax
7%
Development
Charge
Contributions
64%
Budget Committee – October 5, 2015
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BUDGET 2016
Development Charge Reserve Funds
Projected Balance 2015-2025
Development Charge Reserve Funds
OPENING BALANCE
(1)
Debt Charge Trf to Operating
TOTAL EXPENDITURES
REVENUES:
Developement Charges Revenue
TOTAL REVENUE
Interest
CLOSING BALANCE
2016
2017
2018
2025
Projected
Projected
Projected
Projected
Projected
Balance
Balance
Balance
Balance
Balance
3,347,777
EXPENDITURES:
Current Year Budget Trf To Capital
Prior Year Commitments
2015
3,450,724
(19,096,511)
(27,238,913)
38,450,992
(16,526,300)
(21,802,200)
(32,476,300)
(18,404,200)
(49,678,000)
(12,635,293)
(25,217,096)
(5,011,100)
(5,023,600)
(5,026,400)
(3,995,500)
(34,172,693)
(52,042,896)
(37,502,700)
(22,399,700)
(49,678,000)
34,009,000
27,463,866
27,463,866
27,463,866
33,360,574
34,009,000
27,463,866
27,463,866
27,463,866
33,360,574
266,640
2,031,795
1,896,432
2,057,286
4,303,915
(19,096,511)
(27,238,913)
(20,117,461)
26,437,481
3,450,724
(1) Note: Actual transfers from the DC reserve fund to capital are made as expenditures are incurred; therefore the amount shown as Prior Year Commitments
represents the amount approved in prior budgets that has yet to be transferred to capital.
Budget Committee – October 5, 2015
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BUDGET 2016
Strategic Priorities
Funding Sources
Highlights
• EAB Management
Program - $28.8M
Reserve Funds
(Parkland &
Gas Tax)
4%
Debt
13%
• LED Streetlighting
conversion - $12M
• OTM Hospital
Demolition $11.7M
• Fire Station #3 $7.3M
Capital
Reserves
35%
Capital Levy
48%
Budget Committee – October 5, 2015
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BUDGET 2016
Community Enhancements
Funding Sources
Highlights
• Oakville Arena
Rehabilitation and
Seniors’ Centre $29.4M
Parkland
Reserve Fund
8%
Capital Levy
21%
Gas Tax
4%
• South Central
Community Centre
and Neighbourhood
Park - $25.6M
Development
Charges
12%
• Park and Trail
Improvements $7.1M
Capital
Reserves
55%
Budget Committee – October 5, 2015
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BUDGET 2016
Enterprise Initiatives
Funding Sources
Highlights
• Seawall Installation
and Rehabilitation
Projects - $4.9M
Cemetery
Reserves
20%
• Parking, Cemetery
and Harbours
Vehicle and
Equipment
Replacement $2.9M
• Parking Garage
Rehabilitation and
Lot Maintenance $1.4M
• Cemetery Land and
Product
development –
$0.9M
Budget Committee – October 5, 2015
Town
Sources
38%
Parking
Reserves
24%
Harbours
Reserves
18%
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BUDGET 2016
Budget Committee – October 5, 2015
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BUDGET 2016
Budget Committee – October 5, 2015
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BUDGET 2016
Budget Committee – October 5, 2015
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BUDGET 2016
Budget Committee – October 5, 2015
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BUDGET 2016
Budget Committee – October 5, 2015
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BUDGET 2016
$2.78
$2.46
$2.08
$2.08
$1.61
$1.30
Budget Committee – October 5, 2015
$1.51
$1.19
$1.03
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BUDGET 2016
Budget Committee – October 5, 2015
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BUDGET 2016
Next Steps
• October 5 Committee receives Long-term
Financial Forecast
• Meeting adjourned until October 21 to allow time
for review of information
• October 26 - direction to staff on capital budget
• Final capital budget considered with operating
budget in November 2015
• Approval targeted for December 14, 2015
Budget Committee – October 5, 2015
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BUDGET 2016
Questions & Answers
Budget Committee – October 5, 2015