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Home My WebLink AboutFCS-15-165 - 2016 Capital Budget & 10-Year Forecast Staff Report I rrc'.�►E t .R finance and Corporate Services Department wmkitchenerca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: November 30, 2015 SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 WARD(S) INVOLVED: All DATE OF REPORT: November 3, 2015 REPORT NO.: FCS-15-165 SUBJECT: 2016 Capital Budget and 10-Year Forecast RECOMMENDATION: For Discussion Note: Final approval of the 2016 Capital Budget and 10-Year Forecast will take place as part of Final Budget Day, scheduled for January 18, 2016 BACKGROUND: The City's Capital Budget and Forecast provides for investments in infrastructure (assets) that provide a long term benefit to the community. Examples include recreation facilities, roads, and enterprise software systems. The projects included in the Capital Budget and Forecast can span a number of years, and could create new assets, or renew existing assets. The term of the forecast is 10 years, which helps establish capital priorities for both the near future and the medium term. As part of the annual budget process, Council reviews, deliberates, and approves the Capital Budget and Forecast (referred to hereafter as the "Capital Budget"). The objectives of this report are to: • Summarize the 2016 Capital Budget • Describe new investments in high priority areas • Identify major projects not yet included in the Capital Budget REPORT: First Objective: Summarize the 2016 Capital Budget The proposed Capital Budget includes 463 projects with a total cost of $1,160,659,000. The 2016 Capital Budget is largely consistent with the 2015 version as priorities from one year to the next are similar. Three key achievements in the 2016 Capital Budget are summarized below. C - 1 ACHIEVEMENT#1 —The proposed Capital Budget is balanced. Being financially balanced means there is adequate funding for all of the projects included in the Capital Budget. Funding for the capital budget comes from several sources including: • 58% from City Enterprises (self-funding business lines the City operates that are not supported by property taxes). o Includes Parking, Golf, Building, Water, Sanitary Sewer, Storm Sewer and Natural Gas. • 15%from development charges • 14% tax supported capital pool (which includes property tax, debt, and dividends from the City's ownership in the natural gas and hydro utilities) • 7% from reserve funds • 5% from Federal gas tax • 1% other sources Being balanced means council must prioritize to ensure high priority projects are completed first, which may mean that lower priority projects are deferred or excluded from the Capital Budget. Council establishes priorities through a number of different processes, some of which are related. For example, the Business Plan identifies specific actions that will achieve the priorities articulated in the Strategic Plan. The table below outlines a number of the processes used by Council to establish priorities and provides an example of how that input pertains to the budget. Budget Council Process Example of How Input Pertains to the The Leisure Facilities Master Plan (LFMP) established priorities Master Plans for indoor and outdoor recreation. Funding is allocated in the budget to projects based on the ranked priorities. The 2014 DC Background Study set priorities for location and Development Charge (DC) timing of growth related infrastructure such as roads, water, Background Study sewer, and indoor & outdoor recreation. These priorities are included in the capital budget. The 2015-2018 Strategic Plan sets high level priorities to be Strategic Plan addressed during the current term of Council. These are used to identify roj ects/prog rams to include in the budget. The Business Plan is updated each year and identifies specific Business Plan projects/programs that help achieve the overall priorities of the Strategic Plan. The details of the Business Plan are reflected in the budget. Strategy Development The Neighbourhood Strategy is currently underway, and the findings of the strategy will be integrated into future budgets. From time to time specific issues arise, are discussed and Specific Issues debated by Council, and referred to the budget process for final approval. A recent example of this is the Kiwanis Park Pool. Previous Budgets Previous budgets include the priorities of Council at a given point in time. These priorities are the starting point for future budgets. In preparing the Capital Budget each year, staff review the existing Capital Budget against new priorities identified within the past year through any of the other processes noted in the table above. If new priority projects have been identified, they are discussed with senior staff as part of the comprehensive internal review of the Capital Budget. Priority is placed on projects that are required to comply with legislation (e.g. Kiwanis Park Pool), ensure the continued delivery of valued core services (e.g. replacing water and sewer infrastructure), or support objectives C - 2 strongly supported by Council (e.g. investments in parks and trails). Quite often the requests for funding exceed its availability, so senior staff weighs the costs of projects against the benefits they will create before making a recommendation to Council. Ultimately Council decides which priorities will move forward by approving funds as part of the budget process. ACHIEVEMENT#2 —The proposed Capital Budget provides for new investments in high priority areas. In 2016, new funding has been identified for investment in three key areas; addressing Council priorities, revitalizing community amenities, and improving infrastructure used to deliver core services. These areas were identified as priorities through the processes outlined under Achievement 1. A summary of the investments made into the three key areas is noted in the table below, and more details on each project are provided under the Second Objective section of the report. New Investments in High Priority Areas Addressing Council Priorities F- Grand River Park • Public WiFi • Corporate Climate Change Action Plan • Community Gardens Revitalizing Community Amenities • McLennan Park Redevelopment • Kiwanis Park Pool • Iron Horse Trail Improving • to Deliver Core • Replacement of CLASS (online program • Snow Storage Disposal Facility registration system) • Utility Infrastructure Investment • Server Systems Failover • Information Management Software ACHIEVEMENT#3 —The proposed capital budget reduces the City's debt. No additional debt will be issued in 2016 over and above what's previously been identified in the capital forecast. Following a disciplined approach to debt has seen the City's projected debt levels fall from $94M as at the end of 2015 to $85M at the end of 2016, and will see a further decrease to $27M by 2025 as shown in the graph below. City of Kitchener Total Debt (2015—2025) 100,000,000 ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... 90,000,000 80,000,000 ... ......... ......... ......... ......... ......... ......... ......... ......... ......... 70,000,000 60,000,000 - ...... ...... ...... ...... ...... 50,000,000 40,000,000 30,000,000 - --- --- 20,000,000 .. ... .. .. ... ... ... .. .. 10,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 C - 3 This disciplined approach to debt has improved Kitchener's debt per household standing as defined by the Province of Ontario. In 2015, Kitchener's debt per household was within the Province's "high" range, but has moved to be within the "moderate" range in 2016. As debt declines over the next number of years, Kitchener's debt per household levels move to be within the Province's "low" range in 2023. Second Objective: Describe New Investments in High Priority Areas The overall goal is to develop a capital budget that is balanced financially, as well as in priority. The 2016 Capital Budget achieves this balance and provides for new investment in: • Addressing Council Priorities • Revitalizing Community Amenities • Improving Infrastructure Used to Deliver Core Services Investment Priority 1 —Addressing Council Priorities Grand River Park— Funding of $1.3M has been reallocated from other capital projects in 2016 & 2020, and $3.2M has been added in 2025 for the development of Grand River Park. These funds will be used to establish the parks specific location, create a master plan for the site, and develop the parkland as directed by the master plan. More details on this project can be found in issue paper Cap 05. Corporate Climate Action Plan — Funding of $52,000 has been added in 2016-2017 to develop a climate change action plan for the corporation. The plan will include both mitigation and adaptation strategies to reduce greenhouse gas emissions and energy consumption in all areas of City operations, and reduce future risks associated with changes in climate that cannot be avoided. The City of Kitchener is looking to work collaboratively with the Region of Waterloo, the City of Waterloo and the City of Cambridge to participate in the Building Adaptive and Resilience Cities program offered by the International Council for Local Environmental Initiatives (ICLEI) to support the adaptation planning component of the process. Public Wi-Fi — Funding of $500,000 (50% City, 50% Canada 150 Grant) has been added in 2016 for the expansion of the City's Wi-Fi network. The expansion is planned to include the Kitchener Memorial Auditorium, community arenas, as well as Victoria and McLennan parks. Community Gardens - Funding of $50,000 has been added in 2016 for additional investment in community gardens. This funding will be used for activities like installing permanent water supplies to existing gardens or creating new gardens. Investment Priority 2—Revitalizing Community Amenities Kiwanis Park Pool — Funding of $2.5M has been added in 2017 for legislated upgrades at the Kiwanis Park pool. Without these upgrades, the pool will not be permitted to open according to the Region of Waterloo Health Department. More details on this project can be found in issue paper Cap 03. McLennan Park Redevelopment — Funding of $500,000 has been added in 2016 for the City's share of required work on the great lawn in McLennan Park. Periodic maintenance work is required to ensure this former landfill site remains conducive for park use. C - 4 Iron Horse Trail — Funding of $750,000 has been added in 2016 for upgrades to the central section (Victoria to Queen) of the trail as identified in the Iron Horse Trail Improvement Strategy. Upgrades will include items such as paving, road-crossing improvements, seating, and landscaping. Additional funding for the north and south sections of the Iron Horse Trail will be considered for future budget submissions. Investment Priority 3—Improving Infrastructure Used to Deliver Core Services CLASS Software Replacement - Funding of $250,000 has been added in 2016 for the replacement of the City's recreational programming registration software. The current software is being discontinued and needs to be replaced before November 2017. Licensing costs of the new software will be addressed as part of the 2017 budget, once a vendor has been selected. Server Systems Failover — Based on the results of a comprehensive business continuity assessment, funding of $310,000 has been added to relevant Information Technology capital accounts in 2016 to develop full server systems failover capability for the City's computer applications. This capability will ensure that the City's critical applications can be brought back up in the event of a loss of server operations at City Hall (due to power loss, fire, flood, major hardware failure, etc.) ensuring ongoing business continuity. Information Management Software - Funding of $218,000 has been added to the Records Management General Provision account in 2016-2017 to upgrade the software used by the public to access Council reports/minutes. The upgrade will also improve the accuracy and efficiency of mobile staff (e.g. Kitchener Utilities) by allowing them to access/update records in real time from their mobile devices instead of manually updating information after the fact. Snow Storage Disposal Facility - Funding of $1.9M has been added to 2016-2017 for the creation of a permanent snow disposal facility. A permanent facility is required as the leased site (75 Ardelt Place) the City has been using for the past few years will no longer be available as of August 2016. More details on this project can be found in issue paper Cap 04. Utility Infrastructure Investment - Funding of $160M has been added over the 10 years of the Capital Budget for the replacement of aging infrastructure in the City's utilities (Water, Sanitary Sewer, Storm Sewer, Natural Gas). The majority of this funding will be directed to the Accelerated Infrastructure Replacement Program (AIRP) and will be used to replace the water and sewer pipes that are in the most need of repair. This infrastructure was the focus of the State of the Infrastructure Update report and presentation (INS-15-075) made to Council in August 2015. Proposed rate increases in these utilities (7.6% for Water, 10.8% for Sanitary Sewer, and 9.2% for Storm Sewer) will contribute directly to fund the AIRP. Third Objective: Identify Major Capital Projects Not Included in the Capital Budget There are two significant capital projects that are not included in the 2016 Capital Budget as they are subject to more analysis being completed. The two projects are LED Street Lighting Conversion and City Hall Outdoor Spaces. A summary of each project is provided below. LED Street Lighting - The City has approximately 18,000 street lights that are mainly High Pressure Sodium (HPS) bulbs. The City is currently engaged in a region-wide review of converting traditional HPS bulbs to Light Emitting Diodes (LED). This will include setting a standard for LED street lights as well as identifying the initial costs and ongoing savings of C - 5 converting street lights to LED. Concerns raised by Council with respect to lighting quality of LED's will also be reviewed. City Hall Outdoor Spaces — The current infrastructure of the outdoor spaces is more than 20 years old and is in need of repair, retrofit, or replacement. Facilities Management is leading the master plan portion of this cross-departmental corporate project. The master plan review will consider what the spaces are used for, what technologies are available, how to build in flexibility for future uses, and how to best capitalize on economies of scale. The master plan will outline potential projects to be included in future budgets. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Foundation: Efficient and Effective Government Goal: Financial Management Strategic Direction: Strive for competitive, rational and affordable taxation levels. FINANCIAL IMPLICATIONS: Funding requirements for the Capital Budget have been included in the corresponding operating budgets and reserve funds. COMMUNITY ENGAGEMENT: Citizens have an opportunity to provide input about many of the projects included in the Capital Budget long before they are budgeted. Their input comes through public consultation efforts for comprehensive master plans (e.g. Leisure Facilities Master Plan), strategies (e.g. Neighbourhood Strategy, Customer Service Strategy), or specific projects (e.g. Kiwanis Park Pool). As part of those processes, staff considers the feedback received from the public as they make their recommendations and share it with Council when those recommendations are presented for approval. The budget is the process whereby Council affirms the various approved priorities and allocates funds to bring concepts into reality. For the 2016 budget process, staff will again employ a suite of traditional and electronic engagement methods in an effort to effectively inform and consult citizens. Staff will proactively provide information about the budget process via media outreach, the city's website and through Your Kitchener. Citizens are encouraged to provide their input by: • Writing, emailing or phoning City Hall • Attending the public input session planned for January 12, 2016 • Responding to the City's Facebook/Twitter posts about the budget • Contacting their ward councillor ACKNOWLEDGED BY: Dan Chapman, Deputy CAO (Finance and Corporate Services) C - 6 f p,Vuuuumuuugy IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII LO 0 CN cm iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiio ' O N� �I�� IIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIII 0 i� IIi I U. co �IIII IIIIIII��IIIIIIIII II r � O � N IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII V IIIIIIIIIII IIIIIIIIIII IIIIIIIIIIIIIIIIIIIII FI: FI: FI: FI: Fill f L TOM W � O r W N s (D � V LM >+ 1 M = v O v s o N NINO M� V ti (51 C CD � a� 0 a� = E a) w a_ C/) o Mm m� i i II � IL, " li� IIIIIIIIIIIIIIIIIIIIIIIIIIII h �I i I I uuim I .a f Wes. 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U ❑ U U U U U U U ❑ U U U U z LU 0 U z U w w z W N ¢ p rr N ¢ z z d O U) :5i J CO ¢ z z �E J d w 0 z 0 w Q d z ¢ U LU N w U d w U) d w z w > ¢ N O c7 w w z U) z O V w w ¢ z w ¢ w o w (D o o O O z 0- ¢ m z ¢ U) U w d Q w LL u) E cp cp >- m m >- 0- ¢ U Z z z z LZ 0 0 z LZ 0 0 0 ❑LU z > _ > z ¢ ¢ ¢ ¢ ¢ z w O o ¢ ¢ � E E � E E E m ¢ ¢ U) a J J O w w O w w w m J ❑ v z z o t o ¢ () 0 d ¢ N M N M O N M LSD V LSD i O O O O O O O O O O O O co I� O O O O O O O O O O O O _M _M _2 N N N N N O C O E OL M N N N O O O O O O O O O N T— O O d Z CU CU CU I� O rt+ CL '� i; 3 01 °O U o o in zl a fA 00 O O CU co C4 O O O O O N Ln Q LO CU t V O r V T I- O M CU O LSD O Cl) O O 00 CU R r r r r N O r MI O O LSD co I� O O O V 00 M O O LL r co I� r r Or N C N r N r r N O N LO N M M T N N O� � r r 7 N N r N N NI LSD co co I� O ON M N r r r O O N N I� LSD 00 V LSD 00 LSD I� O o r r � V N (h co rl C4 LSD LSD CO LSD LSD T N LSD co O LSD NV O M N r N NI LO Lo M T M 0�0 r r r M O O r O N cl:�co 'It LO rOl LSD O O M r r Op O CU N r r COI LO � O M r LO co (D N OD r N 11-1 LSD C4 O N O r O O r O N O 00 rl LSD 00 co T r O r co N N fA O O O i C 7 U U U U U U U U U U U U U U)lL U U U U U U ❑ U U U ❑ ❑ U N U ¢ J O W W ~ d z N d z w L LU w w w a a_ U) a LU(TD LL ¢ ¢ w w C� C 04 z~ w d 0 LU U w W > J U z ¢ z w m > O > L V U _ z w w w } w i O L ¢ ¢ w N w z U) U 0 J LU m w w w z LL a LLu) w E j O 0- ❑ _ z w �U z 5 O z U z o > Cwt O m ¢ C) O �C u O ° w w ¢ o w rr i g z FI O t o LL (,� 0 LL Q O I- O O O N O N M V M y O O O N O O O O O O M O O O O O O O O O O O O co O O O O O O O O O O O O n N V LSD LSD LSD CU O C O E O O O O O O O O N N N O N O O 1-0 Z v v v v v v v v (D (D (D CD 4_+ CL •; ; am oO U o o in zl a 2 0 0 0 0 0 � r o o r = r . / r \ 2 m R = \ \ / � J r 0 Cl) § / r / $ \ \ \ 9 / / C4@ r o CO 2 @ / @ N Q N m \ / r / m $ c j / Q G r | N co r / m / @ } / R cq L C4@ r / m y / m R LO N \ / r / CO 7 } @ @ Q r / / r / m E / @ \ N / @ r ~ ~ ~ @ @ m m \ / \ N 11.1 @ r ~ ~ ~ 7 @ % m / f \ N / R r ~ ~ ~ G 7 R R \ \ \ N / 0 ) \� \ \ / * \ i $ \ / s£ g & & & & & = g g 6 & & o � z z z z z e u z z U) G u u u u u 0 6 6 = u u m 04 \ / T- 0 0 \ 04 j 0 m 0 2 \ \ j j (D / 0 \ \ \ z 2 \ § ? - LU / § 2 0 } / \ § \ § \ f C) z \ . r z m @ e 0 a e \ 5 0 / U / z k (D / % k q § ~ Ljj � 0 2 ± / 3 L z o 2 g @ 3 ~ — _o / o o G co ca { 1-0) E @ § § §0 2 f ( § 2 \ / \ \ \ m CD __ E ) g ■ A 2 U a 8 A z a. fA O C4 O N C4 I- Cl) V Cl) 00 LO N 00 Cl) O Q w M C4 V V N I- N I\ O I\ O O I\ 00 LO I- V LQ N O I- V r N M LO LO N R n r r r N O r I%l V O O O O O O N co N CU M O 00 r r N 00 N M N O O M O N r r N r N 00 I� CO CO N 00 O O V N CU T O N O CU T I� N co cq CU co M N O N N N _ N cyl N co V 00 I� O O O O O O O N Ono CU T O I� N N N co O co O N N 00 O Lo V Lo O O O V 00 O O Lo CU NO co O T O n V N N N M r N rl co I- O O V 00 O 00 O I� 00 O LO N LO r r O I� V N N N LO LO N N OI 00 V V C4 N I� O 00 V co I� O LO CU N co r T O n V r N co LO LO N r N n N OI N N V N CO O I� O LO O 00 LO O I� r r O I� N LO LO N N OI LSD O 00 LO 00 O LO 00 C4 V co co I� LO Lf7 r O T O 00 I� V r N N LO LO N r N n N rl N V O C09 V N O LN LO co LO N LOI O I- CO V LO C4 I- CO 00 LO CU CO LO Lf7 O CO co T O T C4 V r N N N r N O O O i C 7 U U U U U U U U U U U U U U U U fn lL U U U U U U U U U U U U U U U U Z W d O U) z 0 } N w > z LL > m m W O ¢ U CD O z0 d U Q w C7 Q LU N ¢rr w U w z J N W W ~ W U W ¢ W W m d C3 W U U ¢ J > J J m V U J U) Z 00 2 d W LL N W U ¢ O W z ¢ W } W U) U) U) U) U) O U ~ O W W U 0 U (!� U Z Z Z Z Z LL m w E a z z � w } w w w w w W w } W J J W O � U W Z (!� J J 0 U W Z W W W W W w O yam+ W C7 v 2 = U ¢ U U U U U ¢ O 7) W Y ~ Y Z W ¢ ¢ ¢ ¢ ¢ V ¢ •o L. w 00 L ¢ LZ o w 0 d d d d d C U) ~ LU W FI O t w U z LL (,� z L¢ W L (� LO N M I� O N M I- LO O n 00 O O y O r N N N N M V V V V V LO O O O O O O O O O O O O O O O O co m O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N O 0 E 1-0 m O O O O O O O O O O O O O O O O O E c O O O O O O O O O O O O O O O O o O z LO LO LO LO LO LO LO LO LO LO LO LO LO LO LO LO N CD CD �_+ CL •; ; am W) U o o 0 zl a N O N_ LO O LO 00 LO O N I\ O 00 N O O O O I\ LO Q V Cl) O LO V M 00 C4 N C4 C4 00 V V V V O O CU O r M C4 M LO M C4 V V V V r LO R r r N N O r "1 V M O M O O M M CU O N O O O O 00 00 co CD C%l CU r N V I� co r CU N V N V V V V N LO C N r r r N r N V LO O N O O N CU O 00 I\ 't co LO O N co N co I� co r co N co 00 V V V V N N O r r N N Ln N _ N Ml V V O O O O 00 O O C4 O N C4 C4 C4 co O co O co O N co I� co CU r co N V V V V N LO N r N V co I-- O 00 O I-- O O O O 00 O O O O O V LO NN co O N co co co LO r co N V V V V N LO N r rl V N V O I'- 00 CO O 00 V C4 I'- LO LO LO LO O V O co O N co co co LO r co N V V V V N LO N r O V O N O C4 co co m I- N co O LO V V V V C4 co NN co O r co co co LO r co co V V V V O LO cq N r �1 V O O O co LO LO O co O co co O co co co co N N rC LO O r co co co LO r co co V V V V O LO cq N r 001 V O 00 LO N O 00 co 00 co LO V M M M M O r LO O r co co co LO O co LO V V V V O LO N r N N n1 V O V LO 00 O co V O N N N N LO O r LO m r co LO N V O co LO V V V V O LO N r N r L01 V C4 V CU LO O O CO CO V CO V LO O rC LO O r N V N V O co N V V V V O r N r Q 'o v U U U z U z U U U U z U z z z z U z N� U U U U w U w U U U U w U w w w w U w w U Z 04 LU Q 0 0 W � W U W U N w z a z U z0 W 0 Q < � � w z w N ~ z c O 1 U U U U Z Q R ~ ? 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J J O CO x W O O 0 Y Y O U 04 O Y- U U � U m m w m O ~ Lu N LLu 0 m m LU 00 LL 0 J w i d LL ¢ z E co L d O z (Wj U (n LLB p Q U yam+ W Q U Q Z > U U � Y ¢ W w V v Z z a ¢ 0 LL m w > LL C� .r y Z z0 LL ca C z J O t Z 7) LL V z W LL 0 N M V LO C4 I� i O O O O O O O O co (a �/ i O co co co co co co O n 0) .O E _O C O E O O O O O O O O O O a Z m m m rn rn rn rn rn LOO U o o in zl a fA O 00 I\ O M N LO 00 V O O LO LO N O O M O O N I� V Q Cl) C4 M N r N C4 M V Il- O r 00 O N O O M O V V O N N r Lf) I- O I\ M LO LO I- 00 V LO N Lf) Rr r r r N r r O r 10 N N M NO V LO O N r r N co O NI co co co O LO N O NN Ln NI 00 O N I- V Lo O I- O 00 N r NI 00 O N r N N CO N CO V O 00 V NI V O 00 O T co N O N N I\ O N V O r V T M N co N OI LO I� CO r 00 V co N CO LO r I� O O 00 O N Q co r N C4 co V LO N CO co co NN r r N NI Nrr Fs Fs rl O Om 0000 ON CO O N T O ONO N V I� O r LO I- LOI O O N co co V O N °� w U) U w w c w � U U) U O m z z z z z z z z z z z z z z z z z z z z N� w w 0 w w w 0 w w w w w w 0 w w w 0 w w w w w w 75 U Z N m LU w O O U ❑ LU ¢ u w Q U U N O m 0 0 ui O LU 4- 3: O O ~ N U U O O LU ~ w R w w w U V C') O Lu z ¢ w U a ❑ �_ w °° 0 > J Z O ❑ w z Z O LL m� d O Z U) cj N �_ Q O U4) w J Z O LL U ~ ~ Z z a O U Y U U 2 �2 U Fr O ca N z w w v � N � y J O t LL Z 7) LL V z w LL 00 O O O y O O O O O O O co fC �/ i O co O O O O O n 0) .O E O O O O O O O O C 7 N O O O o az rn rn rn rn rn rn rn LOO U a o in zl a 2 = r o o c / c c � w m m m o m � _ "t r = te \ 't o G o r r cq r cq � � (Y) 't o a e = 't m = 't c (Y) 't m m g 't Q N r � G = _ 't m C J 4 w w w 0 n § 3 2 / R % Q 9/ \ Q / / / \ CD � co Ln QR % CO R 2 3 \ \ \ / \ \ N | N @ g _m f c 2 / \ \ R ^ - 6 N w \ N \ / / \ / m CO G 2 ~ / m @ N \ \ $ r CO CO / a = w r a 't G N 7 N N \ \ § y g = 2 } R m ^ N / w r = r E m G ~ N \ 't N r N / % z e z e z e z e z e z e z e o � < * « < * « < * « _ < * « < * « _ < * « _ < * « �� z z * z z * z z * u z z * z z * u z z * u z z * s£ om z z z z z z z z z e z z z z z z e z z z e z z z U) u u u u u u u u u o u u u u u u o u u u o u u u 04 \ \ < 0 \ / z u \ \ e z e e \ C§ } / 2 ƒ o < y \ z \ \ j \ \U) L / � z e = z LU i z o C') g u �/ e = = = LU E L§ ƒ /o m 2 / k j E 5 / e \ / u z R � z 0 z U C) \ z \ \ \ \ \ \ } ca (D j g e e e / / / e e e e e e e / / / / e e e e e e e < z \ e @ = 7 � v \ 3 } � r 't r m w = G G G G G G G c § 2 " a 3 3 3 3 3 3 3 E o 0 0 0 0 0 0 % 0 2 f ( § a 2 \ \ \ \ \ \ \ Cl) Q _ E ) g ■ A 2 U a i5 A z a. fA 00 O I- 00 L r O 00 O 00 _O N N C4 N 00 O I- O Q r O O V LO I\ I\ I\ Cl) O N Il- co N T C4 N V 00 V LO LO N M 00 V LO N O 00 O LO I� O V M r N R r r N r r O r NI r N O V V N M co N r CO 00 M O O N r r N O NI N r ON N co N co V O N O I- co V 00 V C4 N Ln MI V I� V O I� O O N M LO CO N N V N co O 't c 00 M N r r N r r N V N V O O co O L V Q 't N co r CO LO N I- N I- V LO O CO LO O V C4 co N 00 C4 00 V co OI 00 V LO 00 O T co CR N V N co N NI r N V N CO O LO T M r CO r N O N �N ICflMV O col O N NnI N �N IO O Z Z Z Z Z Z Z _ 'O m z z z z z z z z z z z z z z z z z z z z z N� O w w w w w w 0 w w w w w w w w w w w w 0 w w w ¢ O z m O ¢ o m N J OO LU O w CC O w U) 0 ❑_ O z LU LU v N w ¢ O ¢ w w z N U O O Vm z w� --3 O U m ¢ z U 0- >¢ U w > m LL ❑J O U O U LJ L � > J Z ❑ LL w z I O p w O U a z OO U O w w ¢ V w Z U m z w U) m ❑ U w O ¢ m u U U z z a s cp m ¢ Fr O v 'I J O t LL V z w LL 00 O O N M V LO i O O O O O O O O co (� �/ i -E O O O O O O O O n � 0) .O E _O _O C O E m O O O O O O O O O O a Z m m m m m rn rn rn LO U o o in zl a fA O M N O O O M 00 O N N M I: 00 00 V M 00 _M M O I� O Q O O O N O O M O I� co N 00 O O N N O N O M r N O O N O O co M V O 00 O O co V I- Rr r r r r r O r N CO O O 00 I` T M N r 000 V O O r r N O N co N N (D LO N m co N OI O N co O V O O N NI O r r CO O N T O M N N r N O O O O O 00 00 V I� V O V O N O O 00 V O O O O 00 O T O N N r O CO V I'- V O O CO V O O I� OI r V N M LM co O M N r r N N r N 't I- O co m N r O rl O V co co O O 00 O V N N 001 r 00 O _O 0 N N nl CO o r N fN Ol O O Z Z Z Z Z Z Z °� w w w w _ 'O m z z z z z z z z z z z z z z z z z z z z N� O w w w w w w 0 w w w w w w w w w 0 w w w 0 w w z O w N w CO 0 O ¢ = z U zz N gi w ¢ w Y O Y LU RU m0 O O w z z ~ U O rr w m O w w v } d > J = LL Q w O > J z 0) LL > �_ LL W z z J w O } LL w ¢ O Z U o � \ � d U � J U) �_• w Q w ~ Q w w w U p 2 } J 2 7) Q Z Q () U z z a Q w m U o Fr O ca C z "I H J O t Z 7) LL V z w LL O O I\ 00 O O N i O O O O O O O O co (a �/ i -E O O O O O O O O n � 0) .O � _O _O C O E m O O O O O O O O LO O O a Z m m m m m rn rn rn LOO U o o in zl a Vl C4 I- I\ V I- V Cl) Cl) I- V N N V N I- O O V O O O Q LO N O LO I\ r 00 O O N V N Cl) N C4 LO N 00 V LO I- V M V O I� M V LO I- O M V LO I- O 00 r � � r r r r O r M NI co co M co V co 00 O r r N r N I\ N N r O 00 O O co co O N V N co I� co O O V T N O m I-- O N r NN IT CO m m O M V N M I� O N L{) r I� V 00 O LO CO V O LO CO co co O O co O V co r N r r N C-4 CM O N N I N OI co N 000 N T V N OI O LO 'It r O LO co N LO N co OI V co V O N rl 00 O LO I N O N co co V LOI O N °� w U U w U U w U U U U w U) U U U U O c 2 2 2 2 O m z z z z z z z z z z z z z z z z z z z z N� w 0 w w w 0 w w w 0 w w w w w w 0 w w w w w w w Y O p N = U co O a a N U w w ❑ w O w z ❑ O 0 0 a z O O C 0 0 OO ¢ z N U p ❑ _ w w LU z N U O U w m 0 u 0 V U D Q N 0 0 w L- U a w= ¢ w 0 w w > J Z w LL m ¢ O ¢ w LU w Z E ❑U C7 w > m U LU FL U U Z > ❑ ¢ U LU p Ow ¢ N ❑ O o z (j U z z a` o ¢ U) m O z Y Y Fr O ca C z LU v J O t Z LL V z w LL N M V LO C4 00 O i O O O O O O O O co (a �/ i -E O O O O O O O O n � 0) .O E _O _O _O _O _O _O _O _O O C O E m O O O O O O O O O O a Z m m rn rn rn rn rn rn LOO U o o in zl a fA LSD I- 00 O 00 LSD I- O O V O M I- Cl) V V N M O O LSD Q w O 00 r 00 O N 00 V LSD O O 00 V O N (D N r V N O CD r r r M r N N r r O V Cfl N r N R (D M V O r Cl) OI N r Or V N LSD N co r r Cn r R IO O 00 V M O O O 00 co O V 00 V r O N CO O O 00 I� O N � co � I� M 00 co M r N N O r r r r N r r N NI V O V co O co V N co V N co V I� O � M co O r r O I� N r N CO r N O O O r � 00 00 O I- co V CSC N co CC N� O N NI V m M O N OI I- V LSD O N OI O N Nnl N fN Ol O O ~ Z Z Z Z Z Z Z °� U) 3: U) U) 3: U) U) 3: U) U) 3: U) U) 3: U) U) 3: w U) 3: w U) U O c � � � � 2 O m z z z z z z z z z z z z z z z z z z z z z z z N� w w w w w w w w w w w w w w w w w w w w 0 w w w N J O w N ° � w ° z CC 0 LL LL w <1 ° T- z ° LL p ° = O N E 0 Y p O d = O N U c7 O U z O O0 O LU 00 O LU O o_ 0 ° ❑ o w° z N w ~ w a w w m LL E m w _ J (Q U Z w U) w p Z ❑ _ LU Q cn N U (7 O Z Q O N Y Z (j U z z a Y = w m w O = Y Fr O ca N w w v r U) z J O t LL C) z w LL O O N M V LSD (D i O O O O O O O O O (a �/ i - 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() U z z a U m U) U m Fr O ca C z LU v J O t Z 7) LL (,� z W LL I\ 00 O O N M V i O O O O O O O O co (a �/ i -E O O O O O O O O n � a) .O E _O C O E m O O O O O O O O co O O a Z O O O O O O O O LOO U o o in zl a. fA V N LO N N _M O O N N O LO M O LO V N Q O 00 V O LO M C4 O V I- O O M I� O O M r I� M r N Ln r- O Cl) C4 00 r N r r I- M LO O R r r r V V O r NI C4 co co co N co O Lo � N co O 00 M O M r N O M O N r r Om0 � N r V r � r N O N O r T LO C09 O r � O LO N OI M N co co m C) 00 N O O O r r LO N r I- V N V O r co OI co 00 N I� N r 00 LO ' CD NI co T 00 V V LO m T CU pl N r r co co V C N co V NI T O 00 O M N N co M OI r O O N N N co OI co co V N oc 00 N co r cm N oc co N co fON l co Ln co N fA O Z Z Z Z Z Z O O c � � � � � � � � � � � 2 � � 2 O m z z z z z z z z z z z z z z z z z z N� w w w w w w w w w w w w w w w 0 w w w 0 O O m 5 z N J W W w J w U) m T— 0 O O O O N U J OO OO R w 0 W OW w v � Y m U) O z d Y W J LL ¢ z E U) U � J m u d O Z z m ¢ Q U) U) J LU W U ❑ GOi Z Z U) J Z_ Z_ m O U) w U O m X (� U z z a LL o U ❑ ❑ Fr O ca C z "I v 'I J O t LL V z W LL LO O 00 O i O O O O O O co (a �/ i O O O O O O n 0) .O E O O O O O O O C 7 O O O E O o LZ m m m m m m LOO U o o in zl ❑ ❑ a 2 � � � _ � � r = _ _ � ° ~ Cl) \ \ \ $ % \ \ J y 4 2 @ 0 m § \ \ \ \ / j 9 / « w 4 k f % - @ @ 9 / r Q / I G Ln . & N g ~ @ @ m 7 \ Q ® % ~ \ | / � cq � � � � m Q / \ } \ \ C r « Q o - N 't r « Q / { \ j / � « « N Q - C cq � 't 't co Q / \ { \ / N 6 « N Q / / - \ \ 6 « ) < S� / * $ $ $ $ / $ k\ z z j 2 j j j z j o U)u u u = 6 = _ = u = e m z I z \ / CD m z o = o E / j § \ { * U) j £ j � \ / / C6 e ( / - z i \ { z m a \ < § 2 0- o u = o = 2 / k CI-) E / / j \ ƒ \ u E = 2 ƒ z < L » _ FL C) z \ \ \ < \ \ \ <LU \ / / ƒ IL _ = z -i _ ca § / § / q o < z i e L z j \ = c o = r Lu @ g @ 3 @ G c ca )k \ \ \ \ \ \ 0 0 2 f / k LZ / / \ \ m m « CD __ E ) g ■ A 2 U a A z a. 2 � � p o m c a e Q \ @ r 3 Q \ C J 4 't 0 n § \ \ 9 / § 7 7 � � \ \ � |co / � cq CO \ \ N Q7 N \ / y 2 \ � N Q \ \ / / \ \ N Qco co & \ f � \ \ \ \ \ ) I,. Ur ur u k j 2 j j j j m = 6 = _ _ _ m 04 O 04 z . p T- \ T- LU U) m } LU LU 2 \ j \ / \ /rr i / \ \ LU § o / � z o � LU \ i = k o E \ S \ / e I / ( / 2 2 \ z ƒ z ƒ / \ ) e z 5 / / § z j \ \ \ \ \ \ k (D \ § ƒ o § § \ z LU \ L v \j § r � r m w c @ @ @ @ @ @ c )E \ \ \ \ \ \ 0 0 > f § �Z / \ \ \ \ \ r CD __ E ) \ ■ A 2 U a 8 A z a. y m r- v v _o Q 00 LO N N O o LQ N O V CD R 00 co V V O r M OI O 00 � � M C N r r LO O r r r N co N OI O � r N (V V 00 �yl N M CU N CO V O J N M T o �n TI co M NI co m Q o � co N c NI CU N O N O O O � NI O o r V V N O o r N co N co O o I N N O o fA O O O i C 7 U U U U U N O N CD z_ T- ¢ z N z ¢ _ U) O w ~ 4- ¢ w O R w > 0 O E` ) z ❑ U Q d w rr rr w FE z to rr rr rr rr UU LD } Q rr rr O VU z P a U U ¢ U) U) i ca N w p U U Q U d Q z U ~ O t LL V z w z IL CY) LO cm r- o O Y y 00 00 00 00 00 0o �a o 0 0 0 o 0 '~ 0 E 0 0 0 0 0 0 C 7 N 0 0 O o L z 0°o rn rn rn rn CD W) U o o 0 zl a fA O 00 00 O 00 O V O LO V C4 V V LO I\ N_ O N N Q 00 00 N N N O N O O LO I\ 00 N V O N V N I- LO N M I� M V LQ O M (C CU V Cl) M r RO r LO r r r r r LO M r O r Cl) NOI V M 00 O N r r N co co N OI T LO N M ONO N cq Npl r M co V (C N r LO LO NI m L r LO rl O co I- N O co O O N NI T 000 M N N (D I- co rl co O co N m O LO r V M 000 N N co m LO co m CD OI co M V O L M N fOl O O O V C4 V CO LO O N O N co (C M (C co co N co r N N r r r r M O Z Z Z Z d Z d ¢ ¢ ¢ ¢ ¢ ¢ ¢ L � � � U U C 7 z U U z U z U U U z w U z w U U U U U U)lL W ❑ ❑ W ❑ W ❑ ❑ ❑ W m ❑ W m ❑ ❑ ❑ ❑ ❑ Z Y O z O z z Nz o U ¢ ¢ w J ~ LU O W ¢ w w ❑ ¢ w ❑ W w ¢ w w N w 0 O ¢ 0 w z CO > 0 0 O 0- C7 ❑ O z a _ � w N z LU ¢ ¢U) z w w _ O U ~ ¢ J ¢ 0- Q z w U) m Q ¢ ¢ ¢ Z C7 ❑ (¢ J ¢ N W ❑ W ¢ Z (¢ d -i W ❑ 00 LLj y U d W W 0 U ¢ U W ¢ LL m ¢ M E O > m ❑ z 0 O0 o 0 FU rt�+ W ¢ ; ¢ ❑ W ¢ z d J ¢ W (n co W v Z O W c _ °¢ w❑ ¢ z a LL °❑_ LC (� W O U ¢ m J O d C) U z z a m m U) w O w O O a 7) U N w "I U m m m U U U U ¢ U O Q z O t LL z Q LL _ () z W (n O O V LO O I\ M LO 00 O N O y N N N N N N M M M V V O O O O O O O O O O O O O O 00 M o� co co co co co co co co co co co n c �a o O o 0 0 0 0 0 0 0 0 0 0 m O E N N N N N N N N N N N N O O O O E c m 0 0 0 0 0 0 0 0 0 0 0 o O Cl)co O �_+ CL •; °O U a 8 in zl a 2 LO p = a � � m r a e ° p $ N / 7 Cl) \ J % 4 / 0 co LO n § \ $ / 9 N § Q \ } g @ / N 4 / / \ N & � | Q � \ Q � N w Q / a co co N 6 CD cq LO co - � � N r - � N % Q \ \ CO \ CO CO N 4 w 2 ° \� \ \\ j L'. j j \ j j j j 2 z / m \ 04 / \ \ / / % ƒ \ z ƒ \ o j 2 % } / 04 U) / z z » } 2 \ o o § z \ u Lu \ z f / z } § / \ S / ƒ i j / � . < m z o z 2 § / ƒ § / i / % / C() E 2 z o z = \ 0 \ \ \ \ \ \ \ 0 \ / G IL § / / / { k r \ § / q m § ~ z L z j \ c w = � r LU @ G G @ @ c ca \k \ \ \ \ \ / 0 2 f 0 k �Z \ \ \ \ \ CD __ E ) g ■ & S U a 8 A z NI a. 2 r a e c r r "t o r m cy� = m cJ = m 00 r p c r � = r m Cl) r r CY) / CD 4 2 w w r w « 0 C § ) / \ } \ 9 / N § § 2 % \ \ E 0 Q j \ / / a a } � 6 6 | / \ \ / \ \ § CO m/ / R N Q _ cq � 't ^ \Q = N s 't Q / § CO ) \ & 001 / / p @ j 2 / g § R o w p 4 Q / / \ \ / / \ \ N / CO c � r CO o m cq _ § @ § % 2 3 Q / \ Q g@ j % 0- 0- o � �. z z z z g z z z g z z u z k\ o o z o z z z i z z z i o z o z o § z mu e e u e u u u = u u u = e u e u e o u cm U) \ \ k > § 7 \ \/ z \ m _ \ ± z LU g LU ±� / i \ \ / /»j > > z 2 04 \ } \m § / I z / \ / / j e § 2 0- _ > p e 7 < _ _ _ 2 o u u 7 co _ m - ® e o z J = _ (D i / m \ § m j \ \ m z / \ \ \ 0 > -i m o LU / { / / $ % \ \ / / / / u e ® < _ < LL 0\ § k © ƒ § \ \ S / o } § \ ± R u < G © 2 z _ 0- I < z e 2 g z _ I / z . z 4 g u u z / = I ) / ® * 2 \ \ \ \ \ \ \ / z / e / 5 z * z u e z 2 z 5 z Ca § / § \ q o o m m o 0 0 0 < z I e L z j / � r m = � 't r o = o • § § § § \ \ \ \ \ \ § \ \ @ ' q 0 0 0 0 0 0 0 0 0 0 0 0 0 co E cq 't 't 't 't % 0 2 f ( k a 2 / / / / / / / / / \ \ \ \ r CD __ E ) g ■ A 2 U a a A z a. 21 ;� o o r o C r a t a e & 2 2 7 \ 7 p It - @ 0 / / co co _ 6 3 N / f 4 / \ 0 � | / \ / co 4 / LO 4 co / LQ 6 Na 1'.1 / @ @ C @ § & _ R = « / $ / � a 2 S� ju \ j j \ j j j 0 / \ LL uj 04 \� z \ 06 � \ j = 04 m / \ \ _ _ _ (D j \ \ \ \ \ @ _ o / } o § § \ i / o § = k / / U) F 4 z o > u < ƒ / § ) § rr e § / i ƒ % $ \ > / z r > Ca § / § \ g o 0 0 0 0 < z I e L \ j / 't r = @ @ \ @ c )k \ \ \ \ 0 0 2 f / k LZ \ \ \ \r CD __ E ) g ■ & S U a A z D D a. 2 0 r c m r m o o Cl) a e 2 C $ R % / \ 2 G % / \ C J 4 0 Cl) § § $ R R 2 \ \ / m LO 9 N § / \ \ CO g E \ \ \ @ m co 7 @ & / « Q N co | N m g @ 7 R 2 g Q & m /N ° m 7 @ 9 \ 2 m & r \ N @ 7 g % / 2 / � Qo - R R 7 \ / ƒ � COI \ / 7 m CO / 2 \ N Q / @ 7 % @ \ 2 § N \ / / @ R % 7 / / / \ N 2 % ) §k B § 0 0 0 0 0 0 0 0 0 o G U) 0 6 6 6 6 6 6 o 0 o 6 k / 04 / \\ \/ E z\ \ \ / 0 0 z \ 9 5 © u < 5 \ z 5 z ± \ i 3 / 04 > _ - / � _ ® ® > E 2 j G § z ƒ % 0 m m < z 5 § } / (D ® ® I z § § / } § ® e k > > o \ -1 z ) ) § / f \ ± LL E 3 § i \ f / / / ® � ® m ( ® ® 7 J 2 e e § \ > > 3 k u z z 0 I = m u u z \ \ ® \ / / / / \ \ \ \ ) / ® ® \ } § \ \ a. Z e < z z z z ? ? z o k 0 \ \ § 2 @ < z z o m LL \ \ L z e e g g r m r m 7 • Q S \ \ \ \ \ \ \ \ ° co @ t q 0 0 0 0 0 0 0 0 0 o G o . E c � 0 0 0 0 0 2 E ( k L2 / / / / / / / \ \ \ \ CD __ E ) g ■ & S U a A z D a. 2 LO o � � � m m Cl) � � o a 't = c c c LO o � m m o G c 2 � m m 't m = r a CD e / o = Cl) Q p � r R R R J 4 4 't @ @ o s n 2 E / \ E & \ / C 9 6 F 2 © / r r o = r c § § / 7 \ G m 7 m /6 Q \ \ 3 y g j \ \ � � / | co co LO Q / \ \ \ \ � \ / \ \ \ / � � « / \ \ \ \ \ \ 4 6 4 0 / \ Q \ \ \ � � 4 c col 2 @ ° g p % @ § r & 't / R CO \ 2 @ / G @ 2 t § r \ \ CD c Q \ / \ \ \ � / 2 - % S ƒ ƒ ƒ ƒ ƒ ƒ ƒ e s£ L z & z z g L g & z & z & z z & z £ om z u z u u z z u z u z u u z u ■ U) u = u = = G u G u = u = u = = u = o Z { LO / / 2 e = e u z LU z LU ® \ _ 2 / j 2 \ / / o ƒ \ C } / § / / z z § / z U) % z \ 1 \ j k ) \ z \ \ / / \ \ \ \ \ \ \ 2 \ \ § \ k \ \ \ $ \ u u e o e R ® \ k z � z / ƒ j ; \ = 2 z 2 e 2 / _ ) z < \ \ a. Z } / } / \ e ± % / k (D } / ° o § § \\ z » § o o m LL \ /LL z ® 3 - ° G g g @ @ 8 G C) G G o 0 0 0 0 0 o c § 2 " a @ @ @ @ @ G G G G @ E R N N r r r r r % 0 2 f ( k a z / / / / / \ \ \ \ \ r CD __ E ) g ■ A 2 U a 8 A z a. Capital Budget Issue Paper Index Included in Description Proposed Cap 01 Reserve Continuity Schedule N/A Cap 02 Kiwanis Park Pool Renovation Yes Cap 03 Snow Disposal Site Facility Yes Cap 04 Grand River Park Yes Cap 05 Water Distribution System Improvements Yes Cap 06 Gas Pipeline Replacement for Light Rail Transit (LRT) Yes Cap 07 Storm Water Management Pond Retrofit Program Yes Cap 08 Innovation District Parking Yes Cap 09 Existing Capital Balances N/A C - 174 ISSUE: Cap 01 - Reserve Continuity Schedule FUND: Capital DEPARTMENT: All PREPARER: Ryan Hagey, Director of Financial Planning BUDGET IMPACT: None BACKGROUND: One of the components of the capital budget process, is a review of reserve balances. Reserves are funds set aside in the present for a future use (similar to a personal long term savings account). Kitchener has a consolidated reserve policy that governs the use of all reserves maintained by the City. RATIONALE The attached reserve continuity schedule shows summary information for each of the City's reserves for the upcoming year. This information includes: • Opening balance • Projected revenues • Projected expenses • Projected ending balance • Minimum/Maximum target level IMPLICATIONS:FINANCIAL Reserves are maintained to set aside funds in advance of needing them. This helps avoid rate shock for significant expenses. RECOMMENDATION: For information. C - 175 O Iz O M C0 LO r OD OD O O r- r C0 -e Cl) N CO T O O y (O r I� CO r C r Ln r O £ d M N N LO N I- -T 00 LO O. 00 r T T O m S > V d D ++ O LO LO O LO Cn Cn Cn LO 00 ' ca C I- O r M co I- O 00 N £ N N N N N T N 00 C O. 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N O C Y M M Ln � a m }' Cl) OOM 00 O co r 00 O £ (�O r O M O M M LO LO > m LO (.O 1 r LO CO CO N � d m > i d N +' O (0 O CO LO O LO r r O O ±_ y LO O I,, CO LO O LO r CO O O £ O I� ' Oo r L!7 ' CO N r L!7 L!7 ++ N M Cl) 00 �t N r -e N r- f6 > V O r Cl) -e N N OD co N X jp m r O w N N CO Cl) (p � � � (p CO � 00 � � co � � � Cl) m (6(6 (O CO M d m LL () , O Cl) 00 O O CO O O O CO O O c O LO �t N Cl) CO LO �t M N 1- LO LO N M O ' CO ' O ' ' LO -e co M r E O N M M ... LO N (O 3 a W 't 00 Cl) (.0 O N Lo O O +O+ r O r N LO O CO Cl) I- LO LO 7 m 00 ' ' co ' ' ' O r O N �t 0') CL r r O V N O N (.0 1,, LO I,, O I,- co I- LO LO s r CL r d d H _ y s U) � -a ai 0) J LL c (n c N y _ Q LL N N .Q C/) 7 i ISSUE: Cap 02 - Kiwanis Park Pool Renovation FUND: Capital DEPARTMENT: Community Services Department—Community Programs and Services PREPARER: Denise Keelan — Manager of Aquatics and Athletics BUDGET IMPACT: $2,500,000 BACKGROUND: Kiwanis Park was constructed in 1967, in partnership with the Kiwanis Club of Kitchener. The park sees over 40,000 visitors, of different ages and backgrounds, during the summer. The man-made lake, constructed in 1968, is a significant element which draws individuals and families to the park for the day. It provides a space for people to enjoy a beach-like setting, who otherwise might not be able to leave the city. In September 2014, the Health Department gave notice that the man-made lake does not meet legislated code, under Regulation 565, and that it could not be opened to the public until this was rectified. Understanding the community impact of closing the amenity, City staff made an agreement with Regional Health to develop interim measures to keep it operational until the end of 2016, with the intent of making the necessary renovations in 2017 to meet code requirements. RATIONALE On October 19, 2015, staff brought forward report CSD-15-073 regarding the renovation of the Kiwanis Park Pool. The existing basin is 350 feet long and 175 feet wide, and holds 3.5 million litres of water. In order to meet legislated code with such a magnitude of water, significant upgrades are needed to: i) the filtration system, ii) water volume circulation, and iii) infrastructure piping. The renovation would require the complete removal and replacement of the existing basin and infrastructure. Two renovation options were brought forward in the report for council's consideration, both of which had an estimated cost of $3.5M. It was also noted in the report that if the City of Kitchener did not make the necessary renovations to the pool and considered its closure, there would still be an associated cost for shutting it down, estimated at $800,000. Option A, similar to the configuration and footprint of the existing pool, was recommended by staff and approved by council. This option considered the consultation, and: i. matched the historical use of the park best, which is a more passive type of use, ii. supported the findings of the Kiwanis Park master plan, iii. accommodated the greatest number of swimmers during a busy day, and iv. was believed to have the lowest operating costs associated with it. Although the funding requested in this issue paper is for the pool renovation only, the community did identify that, if possible, the addition of splash features would be supported at Kiwanis Park. Staff has also begun work to identify and approach possible partners who could be interested in supporting the development of spray features at the park, or who may wish to contribute to the renovation of the pool as well. C - 181 FINANCIAL IMPLICATIONS: During 2015 capital budget deliberations, $11V! was allocated as a placeholder for the pool renovation. Since then, a more detailed estimate had been developed by an aquatic design consultant for a total project cost of $3.5M ($2.5M additional funding required). This estimate is for the renovation of the pool only, and does not include the addition of any spray features. The additional funding of$2.5M is included in 2017 of the proposed capital budget. RECOMMENDATION: For information. C - 182 ISSUE: Cap 03 - Snow Disposal Site Facility FUND: Capital DEPARTMENT: Infrastructure Services—Operations Division PREPARER: Dan Locke, Interim Director of Operations BUDGET IMPACT: $1,900,000 BACKGROUND: The City of Kitchener currently has a lease agreement for lands at 75 Ardelt Place which is used for snow disposal. This lease agreement ends July 31, 2016 and will not be renewed. It is a very small industrial property that the City has been leasing since the Twin Ice pads on Lennox Lewis Blvd. were developed in the location of the old snow disposal site.The Ardelt property has recently been sold and the new owner is developing the lands. The City also has an agreement with Kitchener-Wilmot Hydro to use their lands on Graber PI., where they currently have an existing snow disposal site.The Graber PI. lands are immediately adjacent to a residential area which means this location is not available 24/7 and only used between the hours of 7am and 10pm. Given these constraints, it can never be the primary snow disposal site location but will remain as an emergency overflow site for the foreseeable future. The City also has a snow melting location at Bramm St. which will continue until a suitable location in the downtown area can be found to melt snow. If the City decided to stop melting snow, then all of the snow would have to be hauled to and managed at the new snow disposal site location.This may require a larger footprint than is currently available. When the Kitchener Operations Facility (KOF) was constructed, a snow disposal site was slated to be part of the project, but this was cancelled as the site was deemed not suitable due to environmentally sensitive issues. Battler Rd. aggregate yard is currently being considered for the new location of a primary snow disposal site which would have the ability to operate 24/7 during snow loading events. The Battler site has been initially investigated and deemed suitable from an environmentally responsible stand point to have a snow disposal site incorporated on the site. To do this with no or very minimal impact to the environment, further investigation is taking place and a full plan will be developed to mitigate those potential environmental impacts. RATIONALE The rationale for the creation of a new snow disposal site location at this time is due to the projected loss of the leased lands and the result of not being able to use Graber PI. as a primary site moving forward. A snow disposal site needs to be in an accessible location that is large enough to handle the snow volume that the City is legislated to remove from the streets to satisfy the provincially mandated Minimum Maintenance Standards. The snow disposal site should be located far enough away from any residential area to reduce the incidents of noise complaints and need for additional sound diminishing measures. C - 183 FINANCIAL IMPLICATIONS: Funding of$1.9M has been allocated in 2016-2017 for the creation of a new snow disposal site at a suitable location. RECOMMENDATION: For information only. C - 184 ISSUE: Cap 04—Grand River Park FUND: Capital DEPARTMENT: Infrastructure Services—Operations PREPARER: Dan Ritz, Supervisor Design & Development BUDGET IMPACT: $3,240,000 increase & $1,310,000 reassigned in capital forecast BACKGROUND: The benefits of a continuous publicly owned open space and parkland system along the river has been long recognized and was identified in the Grand River Strategy (GRCA, 1993) and the Grand River Corridor Conservation Plan (1995). The Parks Strategic Plan (2010) identified the Grand River Corridor as one of six major themes of the study, acknowledging the benefits of a contiguous public park system along the river. Recommendations identified for the Grand River Corridor included: i. Establishment of an open space land acquisition fund, and ii. Development of a Riverside Park (Grand River Park) site In 2011, the Natural Area Acquisition Fund was established in the ten-year capital budget for open space land acquisition. With the fund now established and with a balance of approximately $11VI, acquisition of potential park location(s) as identified in the Parks Strategic Plan is forthcoming. This issue paper addresses the second step, the development of a future Riverside Park site. RATIONALE The Parks Strategic Plan identified 7 potential sites for Grand River corridor land acquisition ranging in size from 30 to 50 hectares (75-125 acres); portions of these sites have potential for passive and/or more intensive park development. Park amenities may include park trails, picnic areas, washrooms, picnic shelters, canoe launch, entrance road & parking, playground areas and informal turf areas. Park development ranges in cost from $85,000 to $100,000 per hectare depending on the final use and facilities. Without a final site or masterplan established, staff is estimating a potential park cost between $31VI to $51VI. This estimate would be further refined once a Riverside Park site is selected and a masterplan process is completed and approved by council. IMPLICATIONS:FINANCIAL Funding for the development of a Grand River Park is included in the 2016 budget as follows: FUNDING 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL C/C 341# 442 783 DC 109* 2798 2907 RES-FedGas 360^ 360 RES-Parkland 500— 500 TOTALS 810 500 3240 4550 n Reassigned from 2016 Emerald Ash Borer($250)and District Park Development($91) *Reassigned from 2016 District Park Development($109) ^Reassigned from 2016 Major Sidewalk Repair($160)and District Park Development($200) Reassigned from 2020 Natural Area Acquisition Fund($500) Amounts in 000's RECOMMENDATION: For information. C - 185 ISSUE: Cap 05—Water Distribution System Improvements FUND: Capital DEPARTMENT: Infrastructure Services - Utilities PREPARER: Angela Mick, Utilities Water Engineer BUDGET IMPACT: $675,000/year ($6.75M over the 10-year Capital Budget & Forecast) BACKGROUND: The City's water infrastructure includes a number of valves, service connections, and fire hydrants. Additional funding is required to maintain this infrastructure . RATIONALE Water Valves ($623,000/year) There are over 7,280 water valves in the Kitchener Distribution System. Valves are required for emergency shutdowns. Valve are installed between hydrants to minimize the disruption to fire protection during an emergency and/planned shutdown. Age of ' t r Vailves, in the System (7280 v lv 3% 0-24 yrs 125-49,yrs 50-75 yrs >7,5 y r Valves have an expected life span of 40 years (2,230 of the valves are over their expected life), resulting in increased watermain repair costs and customer disruption due to valve failure. The majority of valve replacement occurs during reconstruction projects, however since the lifespan of valves is half that of mains, reconstruction alone does not replace the valves. The benefits of replacing valves include: • Valve reliability in emergencies; • The ability to immediately isolate main breaks (resulting in lower water losses and the least possible disruption of service to customers); • Less employee overtime in dealing with emergency repairs and more confidence in the City's water system. The target for replacement would be 70 valves per year at an estimated cost of$623,000 (average cost per valve replacement is $8,900). As more valves are exercised, it is anticipated that there will be more valves which require replacement. C - 186 Water Services— Municipal Side ($40,000/year) There is currently a line item in the capital budget for lead service replacements, however water service replacements (City side) are not separated out. Reasons for replacing the City side service include: • Unable to repair due to condition (e.g. multiple leaks) • A flow restriction issue and the customer upsizes the private side • Relocation required due to other work/conflicts Water Hydrant Relocation/Replacement ($12,000/year) There are times when hydrants need to be replaced due to conflicts with other infrastructure. IMPLICATIONS:FINANCIAL Funding of$675,000 per year from the Water utility has been included in the proposed budget. RECOMMENDATION: For information. C - 187 ISSUE: Cap 06—Gas Pipeline Replacement for Light Rail Transit (LRT ) FUND: Capital DEPARTMENT: Infrastructure Services— Utilities PREPARER: Sylvie Eastman, Utilities Engineer BUDGET IMPACT: $2,274,000 increase ($1,331,000 Gas Utility, $943,000 Region) BACKGROUND: Gas Pipelines in conflict with the new Light Rail Transit (LRT) line are being replaced, in new locations within the road right-of-way, on various streets throughout the city. The costs of these replacements are borne by both the City and the Region based on relevant legislation. This ongoing project has been included in the capital budget since 2013. RATIONALE Additional funds are required for the LRT project in 2016 based on increasing construction costs.The LRT construction is a design-build project, which by its nature has inherently higher risk than conventionally managed construction projects, and often present unusual scheduling challenges. Coordination with the Region's contractor (Grandlinq) and other utility contractors, who are working in the same area simultaneously, has resulted in delays and cost increases that are not foreseeable until construction is underway. This budget increase is based on actual costs for projects that have been completed and invoiced by the contractor, work in progress, and estimated percent complete for projects with construction currently underway, or the most recent cost estimate for projects where construction has not started. Council has already pre-approved this funding in the 2016 capital budget as part of awarding the construction tender for Duke and Frederick Streets. It is only being noted as part of the budget process as it is beyond the dollar threshold ($11VI) for capital increases requiring an issue paper. IMPLICATIONS:FINANCIAL The total LRT budget included in 2016 is $2,981,000, which is an increase of$2,274,000 over what was projected for 2016 as part of the 2015 capital budget. The table below shows the budget increase for the City as well as the Region of Waterloo. Revised Previous Increase 2016 Budget 2016 Budget City $ 1,737,000 $ 406,000 $ 1,331,000 Region $ 1,244,000 $ 301,000 $ 943,000 Total $ 2,981,000 $ 707,000 $ 2,274,000 There are still four other LRT projects to be completed in 2016/2017 that are not included in the figures above as the design and contractor unit prices are not yet available. Any funding request for these projects will come back to Council through a separate report or the 2017 budget process. RECOMMENDATION: For information. C - 188 ISSUE: Cap 07— Storm Water Management Pond Retrofit Program FUND: Capital DEPARTMENT: Infrastructure Services Department— Engineering PREPARER: Matt Wilson, Design and Construction Project Manager, Stormwater Utility BUDGET IMPACT: $1,500,000 Increase BACKGROUND: As part of the 2001 City of Kitchener Master Stormwater Management (SWM) Policy, twelve (12) stormwater facilities were identified as having the potential for retrofit of the existing quantity control ponds to incorporate quality control features in order to meet the current Ministry of the Environment and Climate Change as well as City of Kitchener standards. Aquafor Beech Limited was retained by the City to undertake a Class Environmental Assessment (EA) and detailed design for the twelve retrofit locations. This work was completed with the City of Kitchener "Stormwater Management Facility Retrofit, Class EA and Detailed Design: Preliminary Design Report", November, 2009 prepared by Aquafor Beech Limited. Three of the SWM facilities have already been retrofitted including ponds 4, 22 and 30. Ponds 61, 65, and 66 located in the Huron Business Park are currently scheduled for construction to begin in 2018. SWM facility (Pond 10) located in the Idlewood Creek subwatershed is scheduled for construction in 2016. RATIONALE A detailed Stormwater Management design report for Pond 10 was completed by Aquafor Beech in 2011 indicating that the retrofit of this pond is feasible and ready to proceed. The proposed design incorporates two sediment forebays and permanent pool features to provide water quality to stormwater currently discharged to Idlewood Creek. The overall objective of wet pond retrofit is to improve water quality downstream of the pond in Idlewood Creek. Additional objectives include the improvement/restoration of local aquatic and terrestrial habitat and the improvement of future operations and maintenance activities. IMPLICATIONS:FINANCIAL The total cost for construction to complete the retrofit of Pond 10 was estimated in 2011 to cost $1,320,000. (Aquafor Beech, 2011). The recommended increase to cover the costs of the retrofit of Pond 10 is $1,500,000. These works are included in the SWM Pond Retrofit Program capital account which is funded by the Stormwater utility. RECOMMENDATION: For information only. C - 189 ISSUE: Cap 08- Innovation District Parking FUND: Capital DEPARTMENT: Infrastructure Services—Transportation Services (Parking Enterprise) PREPARER: Paul McCormick, Manager, Parking Enterprise BUDGET IMPACT: $2,000,000 (from the Economic Development Reserve Fund) BACKGROUND: The Long-Term Parking Strategy for Downtown Kitchener report (see CAO-11-001 dated January 17, 2011) reviewed the potential impacts of a number of factors affecting parking supply and demand. Since that time a number of changes recommended in the strategy have been implemented and construction of the ION (Light Rail Transit) through the downtown has begun. The current growth trend within the urban growth centre is around the King and Victoria area. Any new investment would likely support growth in this area as well as support parking for the future transit hub. Future plans for new garages should be strategically placed within the downtown core instead of close proximity to existing facilities. The Parking Enterprise has commenced with a Parking Solutions for Downtown Kitchener Study that will build on existing studies and data to establish the need for investment in additional parking infrastructure. It is expected that the parking study for the downtown will assist with determining where and when new parking inventory should be added to the downtown. RATIONALE Funding of$2 million has been earmarked in 2020 of the capital budget for future parking solutions that are anticipated to be needed in the downtown area. Specific locations, formats, and high level costing will be identified by the Parking Solutions Study. IMPLICATIONS:FINANCIAL The provision of$2 million included in 2020 of the capital budget is funded from the Economic Development Reserve Fund. RECOMMENDATIONS: For information. C - 190 ISSUE: Cap 09— Existing Capital Balances FUND: Capital DEPARTMENT: All PREPARER: Ryan Hagey, Director of Financial Planning BUDGET IMPACT: None BACKGROUND: Current reporting capabilities do not allow for the addition of existing capital balances to the 10-year capital budget and forecast report. As an alternative, a listing of capital account balances as at September 30, 2015 has been provided. RATIONALE As a part of the annual budget process, staff undertakes a detailed review of all existing capital balances. During this review, staff review the need for all approved funds and in some cases close out balances in capital accounts to the appropriate capital reserve. These reserve funds can then be used to fund other priority projects. This practice ensures that high priority projects are completed in a timely fashion and reduces the impact on rate increases. It is reasonable for the City to carry capital balances for a number of different reasons. First, the attached report is as of September 30th, and not as of the end of the year. This means that work on projects is still ongoing, and that the balances in accounts will continue to be drawn down throughout the final three months of the year. Second, some capital projects require coordination with other organizations (e.g. Region of Waterloo), which may have discretion over the timing of the project. In these cases, the City budgets for its share of the project in the year described by the other organization, but then has little say in when the project actually proceeds. This can cause a balance to remain in the account if the work is delayed. Third, the City uses a number of general provision accounts. Rather than budgeting for a specific project (e.g. City Hall roof), the City budgets this type of work at a more generalized level (e.g. Roof— General Provision). These general provision accounts typically have standard, annual funding transfers even though they may not have a specific project to fund every year. It is common for general provision accounts to build up balances over a number of years and then consume them for a single significant project. Using standard, annual transfers to general provision capital accounts helps smooth funding needs and avoids spikes in capital budget requests for large, costly projects. The attached listing of existing capital balances represents the funds that have been allocated by Council for capital projects. The balances shown in the attachment include encumbrances (e.g. tenders already approved by Council that have not been fully invoiced). At this time, the unexpended balance of all capital projects, regardless of funding source, is$79.7 million. This represents the working balance of capital funding for projects that span more than one year. IMPLICATIONS:FINANCIAL None. RECOMMENDATION: For information. C - 191 m I M O Lf) Ilulumllll O 0) O ^ Il m Ln a) Ln N N -i O N Ln I, M �"� O r� l0 O -1 N Ln m uuuul„ o pl' O � O � m ri Ln m rn m Rt � m �o O ri O m m w n �o m C m O m V� m � O Ln m Ln � N m 'li 6 Ln Co m w m o r j 00 V w. IIIIII O M Lr) III!" 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