2018-2022 Financial Plan

APPENDIX C: INFRASTRUCTURE FUNDING STRATEGY

2010 Project Description

Highways 1,192,911

Sewage

Drainage

Water

Park

Borrow

Cost over 5 years

2823 232 St (116 - Slager)

Interest

Issue Cost

7074 112 Ave (232 St - 240 St) Final Lift 7133 203 St (123 Ave - Powell Ave) 7266 227 St @ Bypass (Traffic Signal)

207,385 615,448 109,150

6235 Parks Master Plan 7504 108 Ave (248 - 249)

40,000

29,634

82 136 Ave @ 24200 Rockridge Reservoir Ph 2 1914 Water Feeder Main Stage 2 Debt Payment

556,016 100,000

Payments from prior year borrowing

1,205,875

-

286,639

97,283

1,391,789

1925 Silver Valley Neighbourhood Se Horse

250,157

1,080,000 1,080,000

170,786 170,786

8,100 8,100

2010 Projects

3,330,769 2,124,894 1,205,875

29,634 29,634

286,639

753,299 656,016

1,681,947

Projects subtotal

-

40,000

Payments subtotal

- -

286,639

97,283

1,641,947

-

-

-

-

2011 Project Description

Highways

Sewage

Drainage 136,650 229,364

Water

Park

Borrow

Cost over 5 years

463 Selkirk Ave (226 - 227)

Interest

Issue Cost

6158 224 St (125 - 126)

841 Selkirk Ave (225 - 227)

343,706

2052 240 St @ Kanaka Creek (Bridge) 6178 Selkirk Ave (226 - 50M W 227) 6032 Whonnock Lake Phase 3 (Path/Light) 6075 Whonnock Lake Phase Iv Beach/General

1,313,280

10,288

227,800 227,446

7521 136 Ave (230 - 231)

25,735

1915 Water Feeder Main Stage 2 Debt Payment

100,000

Payments from prior year borrowing

1,205,875 1,216,765 4,089,914 1,667,274 2,422,640

-

286,639

97,283

1,641,947

2052 240 St @ Kanaka Creek (Bridge)

5,253,120 5,253,120

830,705 830,705

39,398 39,398

2011 Projects

25,735 25,735

652,653 366,014 286,639

197,283 100,000

2,097,193

Projects subtotal

455,246

Payments subtotal

- -

97,283

1,641,947

-

-

-

-

Totals for all years 2007-2011

Highways

Sewage

Drainage

Water

Park

Totals

Cost over 5 years

Projects subtotal

10,218,819 7,246,138 17,464,957

811,369

366,014

1,475,193

3,469,041 6,236,907 9,705,948

16,340,436 15,402,655 31,743,091

Payments subtotal

-

1,433,193 1,799,207

486,417

811,369

1,961,610

Principal Borrowed, and Full 5-year Costs

10,459,223

1,237,500

420,000

7,088,750

19,205,473

3,037,068

144,041

General Guidelines 

The level of debt servicing and ongoing maintenance, operating and replacement costs should not hamper future ability to deal with cost increases related to current community services or growth-related increases in current services. A discussion about our capacity to manage ongoing costs associated with proposed new assets should take place during the capital review process, consistent with Financial Sustainability Policy (FSP) 12.0 10 , with replacement, maintenance and operating costs accommodated in accordance with FSP 7.0 and FSP 7.1.  Borrowing should be limited to special cases, either because we can’t fund out of one year’s budget allocation, or where the project will be paid for over time (e.g. multiple years’ worth of operating revenue). The Financial Plan should be adjusted to reflect all aspects of the project, including revenue sources and cost savings.  Debt financing will not be used to fund ongoing maintenance works, except for 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 will 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.  All projects to be funded by debt must “be submitted to Council with a business case, including recommendations on how the debt will be serviced.” (FSP 8.0)  If debt financing is used to fund a project, performance measures should be established as part of a comprehensive project plan and progress will be reviewed by CMT on a quarterly basis beginning when the debt is issued. The performance measures should encompass cost-efficiency and effectiveness outcomes including project scope attainment. Upon project completion, a report should be provided illustrating achievement of objectives. It could also help to improve procedures and refine budgeting techniques by commenting on the process.  Prior to the issuance of debt, an evaluation on our ability to manage the project internally will be completed to determine whether internal project management capacity is adequate for the project to proceed. If not, funding for outside project management support should be considered.  Consider project timing. Interest costs are low right now, but construction costs are high and we may be paying a premium to compete with other major projects in the region. After these projects are completed, excess capacity may exist that could offset a rise in interest rate.

10 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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