HomeMy WebLinkAboutFIN-19-002 - 2019 Capital Budget and 10-Year ForecastNote: Final approval of the 2019 Capital Budget & 10-Year Forecast will take place as part
of Final Budget Day, scheduled for January 31, 2019.
C - 1
C - 2
C - 3
C - 4
C - 5
C - 6
7
-
C
8
-
C
9
-
C
10
-
C
11
-
C
12
-
C
13
-
C
14
-
C
15
-
C
16
-
C
17
-
C
18
-
C
19
-
C
20
-
C
21
-
C
22
-
C
23
-
C
24
-
C
25
-
C
26
-
C
27
-
C
28
-
C
29
-
C
30
-
C
31
-
C
32
-
C
33
-
C
34
-
C
35
-
C
36
-
C
37
-
C
38
-
C
39
-
C
40
-
C
41
-
C
42
-
C
43
-
C
44
-
C
45
-
C
46
-
C
47
-
C
48
-
C
49
-
C
50
-
C
51
-
C
52
-
C
53
-
C
54
-
C
55
-
C
56
-
C
57
-
C
58
-
C
59
-
C
60
-
C
61
-
C
62
-
C
63
-
C
64
-
C
65
-
C
66
-
C
67
-
C
68
-
C
69
-
C
70
-
C
71
-
C
72
-
C
73
-
C
74
-
C
75
-
C
76
-
C
77
-
C
78
-
C
79
-
C
80
-
C
81
-
C
82
-
C
83
-
C
84
-
C
85
-
C
86
-
C
87
-
C
88
-
C
89
-
C
90
-
C
91
-
C
92
-
C
93
-
C
94
-
C
95
-
C
96
-
C
97
-
C
98
-
C
99
-
C
100
-
C
101
-
C
102
-
C
103
-
C
104
-
C
105
-
C
106
-
C
107
-
C
108
-
C
109
-
C
110
-
C
111
-
C
112
-
C
113
-
C
114
-
C
115
-
C
116
-
C
117
-
C
118
-
C
119
-
C
120
-
C
121
-
C
122
-
C
123
-
C
124
-
C
125
-
C
126
-
C
127
-
C
128
-
C
129
-
C
130
-
C
131
-
C
132
-
C
133
-
C
134
-
C
135
-
C
136
-
C
137
-
C
138
-
C
139
-
C
140
-
C
141
-
C
142
-
C
143
-
C
144
-
C
145
-
C
146
-
C
147
-
C
148
-
C
149
-
C
150
-
C
151
-
C
152
-
C
153
-
C
154
-
C
155
-
C
156
-
C
157
-
C
158
-
C
159
-
C
160
-
C
161
-
C
162
-
C
163
-
C
164
-
C
165
-
C
166
-
C
167
-
C
168
-
C
169
-
C
170
-
C
171
-
C
172
-
C
Capital Budget Issue Paper Index
Included in
IP # Description Proposed
Budget?
Cap 01 Southwest Community Library Yes
Cap 02 Reserve Continuity Schedule N/A
Cap 03 Improving Cycling Infrastructure Yes
Cap 04 Rehabilitating City Hall Outdoor Spaces Yes
Cap 05 Enhancing Iron Horse Trail (Lighting & Trestle Bridge) Yes
Cap 06 Existing Capital Balances N/A
C - 173
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Cap 01 - Southwest Community Library
FUND:Capital
DEPARTMENT: Kitchener Public Library
PREPARER: Mary Chevreau – CEO Kitchener Public Library
BUDGET ASK: None (included in the proposed capital budget)
BACKGROUND:
Since 2006, Kitchener Public Library’s capital forecast has included a new community library for
southwest Kitchener. On May 18, 2011, the Kitchener Public Library Board passed a resolution
to endorse the Rosenberg site as the preferred future location for the newsouthwest
community library.
The building project was initially planned for 2015-2016 and has been deferred due to changes
in the capital forecast and to fit the pace of development in the planning area.
The 2018-2027 capital budget forecast approved by Council on January 22, 2018, allocates
development charge recovery funds for the southwest community library in 2019-2024.
On November 21, 2018, the Kitchener Public Library Board endorsed a standalone library
building on the Rosenberg site as the preferred option for the southwest community library.
This option supports a vision for a Rosenberg community campus connecting the library and a
proposed co-located community centre/elementary schoolwith connected public spaces
including parks, community gardens, pathways and lighting.
RATIONALE / ANALYSIS:
Planning for library service in southwest Kitchener, on the proposed Rosenberg site, is
dependent upon the completion of the infrastructure required to bring services to the site.
Based on our current understanding of the infrastructure timelines, Kitchener Public Library’s
proposed timeline:
2019: Development of a detailed business case
2020: Council approval of capital budget for southwest community library
2020/2021: Library design and planning approvals
2021/2022: Construction of standalone community library
2022: Opening of southwest community library
C - 174
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
FINANCIAL IMPLICATIONS:
The 2019-2028 capital forecast allocates $10M in capital funding for a southwest community
library in 2019-2024. Based on the anticipated construction of the infrastructure to bring
service to the Rosenberg site, the timing for the capital and operating budgets to supportthe
southwest community library are as follows:
Capital Budget Forecast
Funding20192020202120222023TOTAL
Capital D/C36,000 900,0006,220,000 1,969,000125,000 9,250,000
Capital C/C 750,000 750,000
TOTAL 36,000 900,0006,970,000 1,969,000125,000 10,000,000
Operating Budget Forecast
Funding 2021 2022
Operating101,000 1,081,000
TOTAL 101,000 1,081,000
Due to an adjusted project timeline, it is anticipated that costs may increase with a proposed
construction start date in 2021.
RECOMMENDATION:
The Kitchener Public Library Board recommends the Rosenberg site as the preferred location
for a standalone communitylibrary in southwest Kitchener, and that the development of a
detailed business case proceed in 2019.
C - 175
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
C - 176
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Cap 02 – Reserve Continuity Schedule
FUND:Capital
DEPARTMENT: All
PREPARER: Debra Fagerdahl, Manager of Financial Planning
BUDGET ASK: 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 / ANALYSIS:
The City has 43 active reserves that collectively have a projected balance of $57.2M as at
December 31, 2019. 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
FINANCIAL IMPLICATIONS:
Reserves are maintained to set aside funds in advance of needing them. This helps avoid rate
shock for significant expenses.
RECOMMENDATION:
For information.
C - 177
C - 178
179
-
C
180
-
C
181
-
C
C - 182
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Cap 03 – Improving Cycling Infrastructure
FUND: Capital
DEPARTMENT:Development Services – Transportation Services
PREPARER:Barry Cronkite, Director of Transportation Services
BUDGET ASK: None (included in the proposed capital budget)
BACKGROUND:
With the adoption of Kitchener’s Cycling Master Plan in 2010 and Multi-Use Pathways and Trails
Master Plan in 2012, the city started to establish a vision for a cycling friendly community.
While the City is reviewing and incorporating the Cycling and Trails master plans into one
guidance document there is opportunity to invest in separated cycling infrastructure in parallel
with that review.Investment in high quality bicycle infrastructure leads to a more equitable
transportation system, better quality of life for citizens, stronger social cohesionand safer,
traffic calmed streets.
The installation of separated cycling facilities help to implement a vision that promotes active
transportation as the first choice for mobility within Kitchener, while simultaneously meeting
the demands of climate change and economic diversity. In order to achieve this vision, a
connected network of safe cycling infrastructure and traffic calmed roadways that are
comfortable for all ages and abilities and all modes of travel is necessary.
RATIONALE / ANALYSIS:
In order to ensure that separated cyclingfacilities are viable within the City of Kitchener’s
municipal rights of way, staff are proposing to pilot separated cycling infrastructure and related
facilities (enhanced pedestrian crossings, narrowed travel lanes, etc.). These facilities will calm
traffic and make roadways safer in areas where it has traditionally been uncomfortable to cycle
and walk. They will also help to inform the Cycling and Trails Master Plan and begin to shape
what our municipal roadways might look like in the City of Kitchener. Staff will report success of
these facilities to Council approximately 2 years after their installation, prior to installing
separated and protected facilities more broadly across the community.
In addition to the need for more separated and protected facilities along roadways, cyclists and
community members have also indicated that roundabouts are challenging to cycle through. As
a result, staff are also proposing a modification to the roundabout at Huron and Strasburg
Roads to install a “Dutch roundabout”. A Dutch roundabout provides a protected outer ring
adjacent to pedestrian crossings and allocates right of way to cyclists in the same manner that
right of way has already been allocated to pedestrians. It will be one of the first of its kind in
Canada and will set the stage to determine if the design is feasible at other locations
throughout Waterloo Region.
Proposed Projects(in prioritized order)
1)Dutch Roundabout - The proposed “Dutch roundabout” is proposed for the intersection
of Huron Road and Strasburg Road. This approach will connect the existing multi use
trails on all legs, and serve Huron Heights Secondary School and Southwest Kitchener as
a whole.
C - 183
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
2)Water Street - Currently there are unprotected bicycle lanes on Water Street and
delivery vehicles often block these lanes. Additional protection on Water Street will
highlight what protected facilities could look like in a high profile, downtown location,
and make cycling safer. There is little impact to other travel modes, as protection can
be accommodated within the existing facilities.
3)Belmont Avenue – Separated cycling facilities along Belmont Avenue will provide a
suitable detour for the Iron Horse Trail Closure in 2019. This pilot will also demonstrate
integration of transit and pedestrian facilities with separated cycling facilities while also
reducing traffic speeds, thereby creating a more “complete” and safer street. Better
connections to the north/west end of the city will be created as this location connects to
Glasgow Street bike lanesand Filsinger Park Trail.
4)Queens Boulevard -Staff are proposing separated cycling facilities along Queens
Boulevard from Westheights Drive to Belmont Avenue. This would provide a key cycling
connection to the downtown from the west end of Kitchener through the use of
Belmont Avenue, Henry Sturm Greenway, Victoria Park and Water Street. This
establishes a significant connected link between several neighbourhoods and three city
wards that has been identified as a need by the cycling community. This route would
also serve three schools, commercial centers, a community center and high density
residential homes.
FINANCIAL IMPLICATIONS:
Funding of $1,000,000 has been added in 2019 for this cycling infrastructure. The anticipated
costs to fund each project is as follows:
Length
Project (km) Value ($)
Dutch Roundabout n/a 200,000
Water Street 0.5 50,000
Belmont Avenue2350,000
Queen's Boulevard 2.5 400,000
TOTAL $1,000,000
RECOMMENDATION:
For information.
C - 184
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Cap 04 – Rehabilitating City Hall Outdoor Spaces
FUND: Capital
DEPARTMENT:Infrastructure Services - Facilities Management
PREPARER:Cynthia Fletcher – Director, Facilities Management
Lynda Stewart–Manager, Projects & Energy Management
BUDGET ASK: None (included in the proposed capital budget)
BACKGROUND:
In September 2016, Council received the City Hall Outdoor Spaces Master Plan INS-16-066,
which detailed the redevelopment vision to meet critical infrastructure, accessibility, flexibility
and programming needs. In December 2017, Council received City Hall Outdoor Spaces
Functional Design report INS-17-066, which highlighted design considerations including
elements and possible layouts.
Through these discussionswith Council, emphasis was placed on the critical infrastructure
(surface concrete, parking garage membrane and trench drains) and the refurbishment of the
other elements such as the ice rink/fountain and stage were to be considered concurrently with
critical infrastructure replacements; and, subject to available funding.
RATIONALE / ANALYSIS:
The existing site conditions and concerns are outlined in report INS 16-066; specifically,
water penetration into the parking garage causing leaking cracks, peeling paint, and
efflorescence, which is evidence of moisture in the concrete;
damage to the surface concrete has created accessibility and liability issues;
mechanical systems for the rink and fountain are nearing end of serviceable life;
existing stage, rink/fountain designs limit flexibility and creates operational challenges;
and,
the ice rink and fountain are original equipment and reaching the end of expected
lifecycle.
Staff worked throughout the past yearwith consultants to develop detailed designand related
costing for the replacement of the surfaceconcrete, garage membrane and drainage for the
Duke, College and Young St. elevations. For Carl Zehr Square, the detailed design includes the
replacement of surfaceconcrete, garage membrane and drainage, upgrades to lightingand the
refurbishment and re-sloping of the rink and water feature. Cost estimates are provided in
Table 1 for these design features.
Overall, this project would provide multiple benefits.
Infrastructure components that are nearing end of life will be replaced
Addressing accessibility and liability issues. This includes the surface concrete, garage
membrane and site drainage components.
Upgraded LED lighting and mechanical systems in the rink and fountain will operate
more efficiently.
C - 185
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
As the premier outdoor event space in the city, Carl Zehr Square is a vital and integral
part of citizen and community interactions at city hall. By redesigning the fountain
basin, an accessible, welcoming space that encourages social and community interaction
will be created.
The flexibility and reduced operational requirements will enhance the functionality of
the space for many different kinds of events.
The detailed design is in final stages and next steps to completion include the following major
milestone activities:
2019: Consultant selection for construction phases
Develop Construction Drawings and tender packages,
Tender the project in Q3/Q4
2020: Rehabilitation of the Carl Zehr Square and College St elevations
2021: Rehabilitation of the Duke St and Young St elevations
The redevelopment of the outdoor areas supports three strategic areas:
Safe and thriving neighbourhoods - by creating active and vibrant public spaces
Strong and resilient economy – development of downtown Kitchener as the heart of the city
Sustainable environment and infrastructure – managing assets to be sustainable and
dependable in the long term; and managing storm water
FINANCIAL IMPLICATIONS:
Table 1: outlines a comparison between replacement of critical infrastructure in current configuration
and a re-design of the rink/water feature, which will achieve the benefits outlined above. The cost of
the re-design ($8.8M) has been included in budget.
Element Replacement Redesign
General Requirements: Approvals, Permits, Site Preparation $ 705,207 $ 705,207
Removals/Demolition $ 389,625
$ 389,625
Structural Repairs & Waterproofing
$ 1,152,850 $ 1,152,850
Stormwater & Drainage$ 435,700 $ 620,200
Surface Concrete $ 1,452,256 $ 1,485,000
Site Structures & Grade Change $ 267,460
$ 427,000
Electrical: Power distribution, lighting
$ 138,750 $ 244,000
Site Furnishings: waste receptacles, bike racks, umbrellas, furniture $ 113,510 $ 344,000
Landscaping $ 46,220 $ 40,000
Ice Rink
$ 745,000 $ 745,000
Water Feature $ 540,150 $ 750,000
Subtotal $ 5,986,728 $ 6,902,882
Contingency 15% $ 898,009
Contingency 25%$ 1,725,721
Construction Value $ 6,884,737 $ 8,628,603
HST - 2% $ 137,695 $ 172,572
TOTAL $ 7,022,432 $ 8,801,175
C - 186
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
The project has an existing capital balance of $345,000 that will be appliedto the overall
project cost. The additional funding required is $8.5M with the proposed funding source as
follows:
Funding Source2019202020212022Total
Capital Pool$400,000$1,200,000$1,500,000$1,000,000$4,100,000
Parking$500,000$500,000$500,000$0$1,500,000
Economic Devt Reserve$0$750,000$750,000$0$1,500,000
Federal Gas Tax$0 $1,000,000 $400,0000 $0 $1,400,000
Total $900,000 $3,450,000 $7,050,000 $1,000,000 $8,500,000
RECOMMENDATION:
For information.
C - 187
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Cap 05 – Enhancing the Iron Horse Trail (Lighting & Trestle Bridge)
FUND: Capital
DEPARTMENT:Infrastructure Services Department – Parks & Cemeteries
PREPARER:Dan Ritz, Supervisor Design & Development
BUDGET ASK: None (included in the proposed capital budget)
BACKGROUND:
The Iron Horse Trail is a 5.5 km primary multi-use pathway that forms part of the Trans Canada
Trail and travels from Ottawa Street to Union Boulevard in the City of Kitchener.
Consultation for improvements on the Iron Horse Trail concluded with the approval of the Master
Plan on November 16, 2015. Through the consultation, users identified a 91% support for lighting
of the Iron Horse Trail, identifying the trail is heavily used in the mornings and evenings as a
primary commuter route.
In addition, the City conducts regular maintenance inspectionsas well as bi-annual engineering
inspections guided by the Ontario Structure Inspection Manual (OSIM) on bridges and currently
owns 65 pedestrian bridges. The most recent OSIM inspection identified 5 bridges that are
requiring full replacementin the next 5 years, this issue paper only addresses the most
immediately pressing of these, the Trestle Bridgeon the Iron Horse Trail near Victoria Park.
RATIONALE / ANALYSIS:
Iron Horse Trail Lighting
During the 2018 capital budget process, budget for both construction and lighting of the Iron
Horse Trail north and south sections was included into the 2019 capital forecast as follows:
IRON HORSE TRAIL C/C950,000
IRON HORSE TRAIL GRANT 700,000
IRON HORSE TRAIL RES-FEDGAS600,000
The grant portion ($700,000) identified above had been originally anticipated from The Ontario
Municipal Commuter Cycling (OMCC) program however this program has been cancelled and no
further funding will be issued by the province. This funding was proposed to fund a portion of
the lighting of the north & south sections of the Iron Horse Trail estimated at $1,150,000
(including design, consulting & implementation).The proposed budget reestablishes the
$700,000 of funding for lighting, funded through the Tax Capital reserve instead of a grant.
The central section lighting is already under construction and will be completed by the end of
2018 through previously approved budgets and tenders.
C - 188
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
Iron Horse Trestle Bridge
In addition to the lighting, the Iron Horse Trail Trestle
Bridge supports the Iron Horse Trail crossing of Henry
Sturm Greenway. The wood bridge narrows the
corridor to 2.4m (from 3.6m) and changes surface
(asphalt to wood). The last OSIM inspection (2016)
identified the need for a full replacement of the Trestle
Bridge.
Operationally the bridge does not support maintenance vehicles, with wood plank replacement
becoming increasingly difficult to secure to the degrading wood stringers. Replacement with a
pre-fabricated weathered steel structure with concrete/asphalt travel surface will address
maintenance & pedestrian/cycling user shortfalls.
The bridge replacement is included in the proposed budget at an estimated cost of $425,000.
FINANCIAL IMPLICATIONS:
1)Previously approved grant funding in the amount of $700,000 has been replaced with a
transfer from the Tax Capital reserve to address the Iron Horse Trail lighting.
2)Funding of $425,000 is included in the proposed budget for the replacement of the Iron
Horse Trestle Bridge.
RECOMMENDATION:
For information.
C - 189
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
ISSUE: Cap 06 – Existing Capital Balances
FUND:Capital
DEPARTMENT: All
PREPARER: Debra Fagerdahl, Manager of Financial Planning
BUDGET ASK: None
BACKGROUND:
Included in the capital budget package each year is a listing of existing capital account balances.
The attached listing shows balances as at November 13, 2018 and provides brief commentary
about each of the projects.
RATIONALE / ANALYSIS:
As a part of the annual budget process, staff undertakes a detailed review of all existing capital
balances. During this review, staff evaluates 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 usedto 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:
th
First, the attached report is as of November 13, 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 until the end 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 $55.2 million.
C - 190
CITY OF KITCHENER
2019 BUDGET ISSUE PAPER
In addition to the complete listing of existing capital balances, a listing of the Top 10 Balances
has also been provided. These 10 projects account for nearly 79% of the total outstanding
balance as of November 13 and have been arranged from highest to lowest.
FINANCIAL IMPLICATIONS:
None.
RECOMMENDATION:
For information.
C - 191
192
-
C
193
-
C
194
-
C
195
-
C
196
-
C
197
-
C
198
-
C
199
-
C
200
-
C
201
-
C
202
-
C
203
-
C
204
-
C
205
-
C
206
-
C
207
-
C
208
-
C
209
-
C
210
-
C
211
-
C
212
-
C
213
-
C
214
-
C
215
-
C
216
-
C
217
-
C