2018-2022 Financial Plan

APPENDIX C: INFRASTRUCTURE FUNDING STRATEGY

Options for Sustaining What We Have The “caution” signs in the preceding sections highlight areas that have a need for increased and/or dedicated funding, so that they can develop a strategic replacement program. Beginning in 2008, it is recommended that the funds be allocated as follows:

2008

2009

2010

2011

1% for Infrastructure Sustainability

$415,480 $857,733 $1,328,485 $1,827,859

Allocation: Transportation and Traffic Management

415,480

457,028 200,000 100,000 70,000 30,705

812,731 220,000 160,000 101,979 33,776

894,004 608,525 176,000 112,177 37,153

Building Renewal

- - - -

Drainage

Fire Equipment Replacement

Major Equipment/Systems Renewal

The next chart quantifies the effect the proposed funding allocations will have on specific categories. For example, the annual amount dedicated to renewal of our transportation infrastructure doubles by 2011. The current amount provides just 4% of the sustainability requirement, whereas the proposed allocation increases this to 8% in just five years. The cumulative effect of making these decisions now can have a profound impact on our ability to manage the problem in the future.

Current and Proposed Infrastructure Sustainability Levels

$1,800,000

$1,600,000

2005 Funding Level

$1,400,000

2011 Funding Level

$1,200,000

$1,000,000

$800,000

$1,694,004

$600,000

$400,000

$1,108,469

$826,000

$800,000

$737,684

$200,000

$650,000

$574,894

$377,177

$300,000

$265,000

$0

Drainage

Transportation

General Govt

Recreation

Fire

Borrowing for the purpose of ongoing maintenance and renewal is not a sound strategy. If we don’t have the maintenance money today, we certainly can’t sustain debt payments as well as a maintenance program. One exception to this is major maintenance works that cannot be funded from one year’s annual budget without negatively impacting the ability to perform other required maintenance works. In those cases, short-term debt financing could be considered, on the understanding that future year’s works will be limited by the amount of debt servicing required to fund the major projects done in earlier years. Projects to be financed by debt should be submitted to Council with a business case, in accordance with Financial Sustainability Policy 8.0. 5 Providing for Growth New infrastructure to support growth is provided primarily in two ways: (i) subdivision infrastructure built by developers that is turned over, becoming the District’s ongoing responsibility and (ii) Development Cost Charges (DCCs) are used to fund major projects that serve larger areas. The DCC reserve provides funding for the construction or provision of major infrastructure to support community growth under the categories of roads, water, sewer, drainage and parkland. Growth also creates a demand for policing, fire, recreation and library services, but DCCs cannot be collected for infrastructure to support these services. 2.

5 Financial Sustainability Plan Policy 5.52 contains thirteen policies to guide the District’s Financial Planning activities. Financial Sustainability Policies (FSPs) referenced in this document can be found in Appendix 5.

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