HomeMy WebLinkAboutCSD-10-024 - Capital Funding for Community Services ProjectsREPORT
ORT TO:
REPChair Vrbanovic and Members of Finance and Corporate
Services Committee
DATE OF MEETING:
April 12, 2010
SUBMITTED BY:
Pauline Houston, General Manager, Community Services
PREPARED BY:
Pauline Houston, General Manager, Community Services
(Ext. 2646)
WARD(S) INVOLVED: N/A
DATE OF REPORT:
March 30, 2010
REPORT NO.:
CSD-10-024
SUBJECT:
CAPITAL FUNDING FOR COMMUNITY SERVICES
PROJECTS
RECOMMENDATION:
THAT the funding sources identified in Table #2 of report CSD-10-024 be approved as the
sources of:
the City of Kitchener’s 1/3 of funding for the Recreational Infrastructure Canada
o
Program Aquatic Facilities Upgrade projects - $990,000
the unfunded portion of the additional Parks and Trails approved on Budget Day,
o
January 18, 2010 - $291,000
McLennan Park Splash Pad Water Recirculation System - $125,000
o
BACKGROUND:
On February 3, 2010, it was announced that the City of Kitchener received funding approval for
Recreational Infrastructure Canada program (RINC) Aquatic Facilities Upgrade projects with a
total value of $2.97 million. To be eligible for the funding, it is important that the City meet the
following two requirements identified in the RINC program:
Projects must be completed by March 31, 2011
o
The City must contribute 1/3 funding for the total eligible project costs
o
On January 18, 2010, as part of Budget Day discussions, Council approved an additional capital
allocation in 2010 for Parks and Trail construction of $691,000. At that point in time, funding
sources were identified and approved for all except $291,000.
The McLennan Park Splash Pad is part of the Phase 2 development works for McLennan Park,
which is one of the projects that has received Infrastructure Stimulus Funding. The water
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recirculation system was not part of the original scope for the Splash Pad and in order to
proceed would require funding. The McLennan Park project was approved for partial funding
under the Infrastructure Stimulus Fund, which also has a completion date of March 31, 2011.
The purpose of this report is to outline for Council’s consideration funding options for the above
capital projects so that construction can commence as quickly as possible in order to meet the
March 31, 2011 timelines for the RINC and ISF programs.
REPORT:
Recreational Infrastructure Canada Program – Aquatic Facility Upgrades (Cost estimate
$2.97 million)
Several aquatic facilities require piping and filtration system upgrades. In addition, some
facilities require renovations such as the creation of family change rooms. The latter would
improve customer service and provide a safer environment for children. Table #1 below shows
the list of facilities that have been recently approved for funding.
Table #1 Summary of Aquatic Facility Upgrades
Aquatic Facility Upgrade
Harry Class Pool Change house upgrade
Harry Class Pool Deck replacement
Harry Class Pool Epoxy resurfacing
Breithaupt Pool Filter system upgrades
Wilson/Kingsdale Pool Add splash pad
Chicopee Pool Add splash pad
In addition to the above projects, the City applied for funding for a complete overhaul of Kiwanis
Pool for an estimated cost of $2 million. However, given the delay in the funding approval
timeline, this project was withdrawn as it could not be completed by the March 31, 2011
deadline
.
As outlined in table #2, there is funding capacity in several aquatics and facilities management
accounts resulting from the fact that the approved upgrades will reduce pressure on future
capital provisions for the facilities identified above. As a result, these provisions may be
allocated to fund the City’s 1/3 share of the project cost. These amounts total $244,000.
The balance of funding required ($746,000) may be drawn from capital surplus, which has a
sufficient balance as a result of a recent closeout related to the Wabanaki Drive extension as
outlined in FIN-10-050 dated March 22, 2010.
Parks and Trails Construction
The 2010 capital budget included a provision for the sustainable level of parks and trails
development, but $291,000 of this budget had no identified funding source at the time of budget
approval.
There is a sufficient balance within capital surplus to fund this amount and it is recommended
that Council approve this funding source in the absence of other viable alternatives.
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McLennan Park Splash Pad Water Recirculation System
Although not part of the original scope or budget for the project, implementation of a water
recirculation system at the splash pad will result in reduced utility operating costs due to lower
water consumption that would result in a five year payback of the capital cost. It is
recommended that the funding for this project be drawn from major park development
($110,000) and outdoor fountains ($15,000) which are appropriate funding sources for this type
of expenditure. The impact of this reallocation of funding will be a deferral of a sportsfield
upgrade until 2011.
Table #2 Recommended Funding Sources
EligibleFederal/City of
ProjectProjectProvincial Kitchener Funding Source Recommended for City’s
Description Costs ShareShareShare of Cost
Aquatic$2,970,000 $1,980,000 $990,000 Capital Surplus $746,000
Facility FM Breithaupt Maintenance 2010 $ 63,000
Upgrades FM Breithaupt Maintenance 2011 $ 63,000
FM Outdoor Fountains 2010 $ 13,000
FM Aquatics Maintenance 2010 $ 30,000
CSD Aquatics 2010 $ 65,000
CSD Aquatics 2011 $ 10,000
Parks and $291,000 - $291,000 Capital Surplus $291,000
Trails
McLennan $125,000 - $125,000 CSD Major Park Development 2010 $110,000
Park Splash FM Outdoor Fountains 2010 $ 15,000
Pad
Recirculation
System
FINANCIAL IMPLICATIONS
As outlined in the body of the report. The projected balance in capital surplus is comprised of
the following:
Revenue (close out):
Wabanaki Drive Extension $1,545,202 (per FIN-10-050 on March 22, 2010)
Projected Expenses:
Aquatic Facility Upgrades $ 746,000
Parks and Trails $ 291,000
$1,037,000
Balance remaining: $ 508,202
This balance will be retained to mitigate a 2010 operating deficit, supplement the low capital
contingency balance or address unfunded capital priorities in the 2011 budget (e.g., parks and
trails, accessibility, cemeteries, etc.).
ACKNOWLEDGED BY:
Pauline Houston, General Manager of Community Services
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