2004/05/04SpecBudgMtgs.SPECIAL
COUNCIL/BUDGET
MEETING
Tuesday, May 4, 2004
Order of Business
and Agenda Package
SPECIAL COUNCIL MEETING
AGENDA
TUESDAY, MAY 4, 2004
4:30 P.M.
COUNCIL CHAMBERS
PRAYER: Alderman Selina Volpatti
REPORTS
F-2004-30 - Chief Administrative Officer - Re: 2004 General Purposes Budget.
-AND -
Correspondence from the Niagara Falls Public Library - Re: Approval of Spending
Limits prior to the Approval of the 2004 Capital Budget.
-AND -
Correspondence from Nova House Campaign - Re: Requesting that consideration be
given to a $100,000 pledge commitment over a five-year period to the Nova House
Campaign.
BY-LAWS
2004-93 To adopt, ratify and confirm the actions of City Council at its meeting held on
the 4th day of May, 2004.
' niagara
falls
public
library
April 21, 2004
forty
eight
forty His Worship Mayor Ted Salci
eight
victoria and Members of City Council
avenue City of Niagara Falls, Ontario
niagara
falls Members:
ontario Re: F-2004-28: Approval of Spending Limits
L2E 405
Prior to the Approval of the 2004 Capital Budget
Tel.: 905/356-8080
Fax: 905/356-7004
On April 19, 2004 City Council approved F-2004-28 which included that new
capital items deemed essential by a department or Board must be approved by
City Council prior to purchase.
Materials (books and audio visual resources) for the new branch library in the
Niagara Falls Community Centre are designated as new capital items and deemed
to be essential by the Niagara Falls Public Library Board. The Library's
purchasing program for this collection, approved and started last year, should be
maintained. Selection, ordering, cataloguing and processing materials are on a
weekly basis to develop this new collection in time for next year's official
opening.
Until the 2004 Capital Budget is approved by City Council, the Niagara Falls
Public Library Board recommends respectfully that City Council approve
$348,589 for the purchase in 2004 of books and audio visual materials for the new
Niagara Falls Community Centre Branch Library as per the 2004 Capital Project
Handbook dated April 19, 2004.
As per page 18 of Section Three of the 2004 Capital Project Handbook, Materials
of $348,589 are funded by $135,000 Development Charges, $130,000 Debentures,
$50,000 Library's General Purposes Contribution and $33,589 Surplus.
Please note that the 2004 Capital Project Handbook has reduced expenditures of
Materials for the new branch library in the Niagara Falls Community Centre by
$45,000 in 2004 from the $393,589 submitted to you on March 8%
Since~l~/] -,
Ca
Niagara Falls Public Library Board
MAY 0 q 200
~,~ ~_,_~L b'_~ ~0_.N~ .............. .....
NOVA HOUSE
C A M p A I G N
www.womensplacesn.or§
March 9, 2004
Mayor Ted Salci
City of Niagara Falls
City Hall, P.O. Box 1023
4310 Queen Street
Niagara Falls, ON
L2E 6X5
Dear Mayor Salci:
Thank you so much for meeting with Bill Smeaton and myself today to discuss the Nova
House Campaign. We are very pleased with the progress of the campaign and the
continued support that we are receiving from the community and leadership in Niagara
Falls and Fort Erie area. In total more than $700,000 has been committed to our goal of
$1.2 million dollars.
As per our discussion, we are respectfully requesting the City of Niagara Falls consider a
pledged commitment to the campaign for $20,000/year over a five-year period, for a total
of $ I00,000. A request has also been made to the Town of Fort Erie.
In closing, I would like to reaffirm that a commitment at this level, by the City of Niagara
Falls will demonstrate the continued commitment by the City's leadership toward this
worthwhile project.
Again, many thanks for your continued support of Nova House, our operations and our
capital campaign.
I remain, respectfully yours
Maria G. Vanvelzen
Executive Director
c.c. Bill Smeaton
CAMPAIGN OFFICE · PO. BOX 20042, Niagara Falls, ON L2E 7j3 · Ph: 905 353-0361 · Fx: 905 353-9647 · womensplace@gosympar~co.ca
~____~_.'~) A WOMEN'S PLACE OF SOUTH NIAGARA INC,
SHELTER
FOR
ABUSED
WOMEN
AND
CHILDREN
Dear Mayor Salci and Members of Council,
Thank you for your continued support to Nova House. I am attaching a copy of the
follow up correspondence relating to our request to the City of Niagara Fails for
$100,000 grant payable over five years.
The support received by Nova House has been tremendously appreciated by Women's
Place of South Niagara [nc and our Capital Campaign Volunteers. I am respectfully
requesting your support of this request to assist us in realizing our vision for a new, safe,
accessible shelter for women and children in the City of Niagara Falls.
Should you have any questions or require additional information please feel free to
contact me at 905 732 4632.
Respectfully,
Mafia Vanvelzen
Executive Director
Women's Place of South Niagara Inc.
City Hall
4310 Queen Street
P.O. Box 1023
ChiefAdrninistrative Officer Niagara Falls, ON L2E 6X5
web site: www.city, niagarafalls.on.ca
(905) 356-7521 Ext. 5100
Fax: (905) 374-3557
jmacdona@city, niagarafalls.on.ca
May 4, 2004
His Worship Mayor Ted Salci
and Members of the Municipal Council
City of Niagara Fails, Ontario
Members:
I am pleased to present the City of Niagara Falls "draft" 2004 General Purposes Handbook which
provides a comprehensive overview of the City's operating budget.
The preparation of the 2004 "Draft" Budget has been guided by a desire to maintain the current level
of service and respond to the Corporate Strategic direction established by City Council.
The challenges encountered by the Corporation of the City of Niagara Fails are not unlike those
.faced by ail residents and businesses in our community. We are all faced with inflationary and utility
increases which make it necessary to re-examine our spending patterns and revenue opportunities.
This year, we face other significant budget pressures. Our OMERS holiday has ended and we are
again responsible for our full share of the Employees Pension Plan in 2004. The increased OMERS
cost, combined with previously negotiated employee contracts, result in an additional $3.5 million
being added to our 2004 budget.
We will also continue to be challenged as we move forward to find long-term sustainable solutions
to achieve a balanced budget. With Council's direction, staff is committed to investigating methods
of alternative service delivery and to providing all services in the most efficient and cost effective
manner possible.
ThiS General Purposes Budget is the main source of funding for our Capital Projects Budget. As
such, we have attempted to find the appropriate balance between debenturing and use of short term
financing supported through the General Purposes Budget.
We believe that with this year's budget we have succeeded in concentrating our capital spending on
priority areas and maintaining the existing service levels. In order to meet the challenges of this
year's budget process and absorb the additional demands, some items included in past budgets have
been reduced, deferred and/or eliminated. However, staff is of the opinion that a reasonable balance
has been attained and the proposal contained in this document will achieve the vision of CoUncil and
meet the needs of our Community.
_Respectfully submitted:/')
cDonal
~/ Chief Administrative Officer ,
Corporate Services Department F-2004-30
The City of ~1(
Finance
Ken
Burden
F(:]IIS=-~j~.. 4310 Queen Street Director
P.O, Box 1023
~ln~~l~' Niagara Falls, ON L2E 6X5
~ll~~ ~.-- web site: www.city.niagarafalls.on.ca
Tel: (905) 356-7521
Fax: (905) 356-2016
E-maih kburden@city.niagarafalls.on.ca
May 4, 2004
His Worship Mayor Ted Saici
and Member of the Municipal Council
City of Niagara Fails, Ontario
Members:
Re: F-2004-30 - 2004 General Purposes Budget
RECOMMENDATION:
That City Council approve the 2004 General Purposes Budget.
BACKGROUND:
The Chief Administrative Officer directed Staff to prepare the 2004 General purposes Budget in
compliance with City Council's goal "to make every effort to maintain current levels of service
without placing an increased burden on the City's Taxpayers". Staff has cooperatively prepared an
operating plan for 2004 that will restrain expenses, increase non-levied revenues, and maintain the
residential property tax rate.
Staff has used a number of assumptions to address the challenges in preparing the 2004 Budget.
Schedule "A" is a summary of the 2004 General Purposes Budget. This report provides information
on the assumptions used for the major kinds of Revenues and Expenses. Sections 3 to 7 of the 2004
General Purposes Handbook provide information in detail for each of the services provided for in
the 2004 General Purposes Budget.
REVENUES
TAXATION: ASSESSMENT AND TAXATION
For 2004, the current value property assessment has been updated and is based on a valuation
date of June 30, 2003. The new assessment information is being analyzed by Staffwi. th the help
of the Municipal Property Assessment Corporation. Preliminary vaiues show an overall increase
of approximately 7.2%, approximately $389.5 million. This increase includes the re-valuation
of property assessments for existing properties (5.5%) and for new properties (1.7%). Most of
the increase is occurring in the Residential Class ($340.8 million), some increase in Commercial
($36.2 million), and some increase in the Multi-Residential Class ($8.1 million).
Working Together to Serve Our CommuniO~
Clerk's · Finance · Human Resources Information Systems · Legal Planning & Development
May 4, 2004 - 2 - F-2004.30
Staff has prepared the taxation revenue using the preliminary assessment information for the 2004
taxation year. Staff has used the 2003 Regional tax policy and the 2003 tax rates to calculate the
2004 total levy for both General and Urban Service Area taxation.
The total taxation revenue for 2004 is $38,511,900, ($36,503,700 for 2003). The total increase of
$2,008,200 results fi-om maintaining the 2003 tax rates. The General taxation portion of the total
revenue is $33,488,500; approximately $1,747,500 more than 2003. The Urban Service Area
taxation portion is $5,023,400; approximately $260,700 more than 2003. The following chart shows
the increase in taxation revenues for each of the assessment property classes.
Assessment 2004 2003 $ Variance % Variance
Property Class Taxation Taxation More (Less) More (Less)
Residential $21,767,433 $19,970,345 $1,797,088 9.0%
Multi-Residential 2,038,545 1,981,607 56,939 - 2.9%
Commercial 12,985,788 12,852,380 133,408 1.0%
Industrial 1,139,619 1,059,618 80,001 7.6%
Large Industrial 340,110 407,866 (67,757) - 16.6%
Pipeline 211,770 203,120 8,650 4.3%
Farmlands 28,150 28,386 (237) -0.8%
Managed Forests 486 378 108 28.5%
Total $38,511,900 $36,503,700 $2,008,200 5.5%
Compared to 2003, properties will not pay any more in city taxes per $100,000 property assessment.
Properties that have experienced an increase or a decrease in their respective assessment, will pay
more or less taxes in relation to the change in their assessment.
WASTE MANAGEMENT
Using the preliminary property assessment information, Staff can indicate that the rate per $100,000
of residential assessment will be approximately $86 ($80 for 2003). The rate per $100,000 of
commercial assessment will be approximately $140 ($129 for 2003). Farmlands will pay
one-quarter of the tax rate for residential properties. Vacant properties will pay the reduced waste
management tax rate applied to their property class.
TAXATION: PENALTIES AND INTEREST
Since July 1, 1998, the penalty and interest rate has been set at one and one-quarter percent ( 1 ~ 1/4%)
per month. Staff has estimated an increase of $220,000 in this revenue due to a higher balance in
property tax receivable. Staff will continue to place a high determine on collection of taxes with
consideration for taxpayers in payment arrangements.
May 4, 2004 - 3 - F-2004-30
PAYMENTS IN LIEU OF TAXATION
Payments in Lieu (PIL's) are payments made to the City by other levels of government agencies or
government bodies £or property owned within the City of Niagara Falls. These properties are t~eated
differently than other residential or commercial properties in the municipality and, as a result, the
methodology of calculating the amount due can be different. The function or legislative authority
determines the methodology of ascertaining the amounts due. The City's revenue has been
conservatively calculated in accordance with legislation. As the new Casino opens in 2004, the
anticipated increase in revenue has been included. A preliminary estimate of the revenue increase
is approximately $2.5 million.
GRANTS AND SUBSIDIES
Local Services Realignment included the allocation of the Connnunity Reinveslxnent Fund (CRF),
a provincial grant to assist municipalities with the costs of transferred responsibilities. The City's
allocation of$3,153,000 fi.om the CRF is included for 2004, ($2,415,000 for 2003). The CRF grant
for 2004 includes a Transit Bonus of $170,000, (same as 2003) and a CRF Bonus amount of
$219,000 (same as 2003).
Staff anticipates the successful award of a one-time grant fi:om Ontario Power Generation Co.
(formerly a part of Ontario Hydro). However, due to the restructuring of the company and the
deregulatiOn of the electricity market, the grant may not be received in the year 2004. Staffhas not
included the grant due to the uncertainty of the timing for its receipt.
LICENCES, PERMITS, USER CHARGES, FEES, RENTALS
Staff has investigated and prepared reports for the Council's consideration over the past several
months. Where applicable, the approved increases to the Schedule of Fees for Services have been
incorporated in the various revenue sources. For example, the increased rates for the 2003/2004
arenas' season are included. Asignificantrevenuedecreasewillbethemissingbuildingpennit fees
relevant to the new Casino complex which were fully realized in 2003. The overall decrease in this
kind of revenue is (15.3%) or approximately ($1,085,800).
LAND SALES
Staff has included the anticipated proceeds of land sales of $95,000 during 2004. During the coming
year, Staff will actively promote the sale of surplus lands.
RESERVE FUNDS, RESERVES AND SURPLUS
During 1999, the Niagara Falls Hydro paid out an outstanding debenture to the City's reserve funds.
Staff has included $140,100 of that reserve fund to pay for the 2004 principal and interest payment.
During 2001, the City debentured $99,100 more than required for the Lundy's Lane Battlefield
May 4, 2004 -4 - F-2004-30
Millennium project. These fnnds have been put into a reserve fund to help pay the annual principal
payments. For 2004, $9,900 will be used to help pay the $27,000 payment. Staff has been
investigating the use of special purpose reserves and has included the application of $2,573,400 for
2004. Staff has included contributions of reserves to offset specific expenses; for Sick Leave
Liability ($445,000) and OMERS premium ($166,000). Staffhas also included various contributions
from reserves to help offset the unfunded increase in expenditures; $200,000 from Building Permit
Stabilization, $150,000 from POA surplus, and approximately $119,000 fi.om reserve funds.
SUNDRY REVENUE
The City receives an annual compensatory grant of $2.6 million from Casino Niagara. The City also
receives revenue fi.om the Provincial Offences Act (POA) Inter-Municipal Agreement. The
agreement, approved in May 2000, provides a sharing of net revenue with the Region and the other
Niagara municipalities. The City's share for 2004 is approximately $230,000 of the POA revenues
to be distributed.
REVENUE SUMMARY
Total Revenue has increased fi.om the significant gains realized from positive economic factors and
the one-time use of reserves and reserve funds. Of the total increase of $7.3 million, $2.5 million
will come from taxable assessment and another $2.5 million will come from payments in lieu of
taxation. The use of reserves and reserve funds will increase by $2.2 million and, along with the
increase in provincial grants ($781,000), will help to offset the expected decrease in licences,
permits, services charges and concessions. The total revenue increase of $7.3 million represents
11% more than the 2003 budget.
EXPENSES
WAGES AND BENEFITS
Staffhas used the approved 2004 salary/wage rates in the 2004 Budget. Staff has also included the
additional fire fighters to address the increasing level for Fire services.
Staff has examined the costs for employee benefit plans and statutory contributions and has adjusted
the costs in the 2004 Budget. Premium costs for benefit plans have increased effective September
1, 2003 for a one-year period. Canada Pension Plan contributions and Employment Insurance
contributions have increased fromrate increments and salary/wage adjustments. Staffhas included
the full impact of OMERS pension contributions (an increase of $1.6 million), as the contribution
holiday ended on December 31, 2003.
Staff estimates the total expenditure for salaries, wages and benefits to approximate $31.4 million,
an increase of $3.1 million over 2003.
May 4, 2004 - 5 - F-2004-30
MATERIALS, CONTRACTED SERVICES, RENTS AND FINANCIAL
Staff has included a general inflation rate increase of 2.8% for the 2004 costs for materials and
services. Energy expenses were significantly increased according to each of the relevant percent
increases. General Insurance premium was maintained for the 2004 policy term by increasing the
deductible amounts. The overall expenditure for materials is estimated to be $8.7 million,
approximately $363,000 less than 2004. Staff estimates the total expenditure for Contracted Services
to approximate $10.6 million, an increase of $1,627,000 which is mostly attributable to an increase
in Regional waste management services. Rents and Financial expenses have a small increase of
$48,000. A schedule of Conferences, Conventions and Workshops anticipated for the year 2004 is
attached for reference.
CAPITAL CONTRIBUTION
During 2004, Staff expects to use more long-term financing $6,654,988 ($3,729,000 for 2003) to
assist the total operating contribution $9,075,849 ($6,226,000 for 2003) to the Capital Fund.
Debenture borrowing will affect future debt obligations, however, the long-term financing will
provide the necessary funding for the 2004 Capital Projects Budget. The impact of the new
borrowing will add approximately $919,000 to the 2005 Debt payment obligation.
DEBT PAYMENTS
At December 31, 2003, the total debenture debt outstanding was $9,142,831. During 2004, the
contractual payment of $1,131,040 includes a reduction of $765,870 in principal and an interest
charge of $365,170. Staff has included $150,000 contribution from reserve funds to help pay the
annual payment. Per Council direction, Staff is using short-term financing until the new Casino tax
revenues are available to pay for the railway acquisition. For 2004, the financing cost will
approximate $517,500 on the temporary loans of$11.4 million. Staff also anticipates the loans to
be reduced by $3.6 million. In addition, short-term financing will be used to pay the City's
contribution for the construction of the Niagara Falls Community Centre. For 2004, the financing
cost will be approximately $114,000.
EXTERNAL TRANSFERS
Since January 2004, City Council has received requests from Agencies, Boards and Commissions
for continued funding. Staff has included these requests in the 2004 Budget. Staff reminds the
Committee that the requests (totalling $8.1 million), were previously referred to "final budget
deliberations". These requests have been reviewed and reduced to $7.45 million; an increase of
$626,249 over 2003. The attached Schedule "B" shows all of the requests from Agencies, Boards
and Commissions.
May 4, 2004 - 6 - F-2004-30
EXPENSE SUMMARY
The total expenditure increase is $7.3 million or 11% more than the 2003 budget. Total Expense has
increased from the realistic forecasts of wages and benefits ($3.13 million), materials and contracted
services ($915,000), debt payments ($257,000), additional capital contributions ($2.33 million) and
Municipal Grants ($626,000).
CONCLUSION
City Council's approval of the 2004 General Purposes Budget is appreciated. The 2004 tax rate
calculation will be made when the 2003 Surplus from General Purposes is known, the final property
assessment roll is received and the 2004 Regional tax policy is finalized.
Reconunended by: Respectfully submitted:
K.E. Burden
Director of Finance ~'/ ~°hil~e f~a;mDi~salt rdat iv e O ffi c er
Approved by:
T. Ravenda
Executive Director of Corporate Services
CITY OF NIAGARA FALLS SCHEDULE 'A
2004 GENERAL PURPOSES BUDGET
SUMMARY OF REVENUE AND EXPENSE
i,("-'~ 2003 2004 $ Variance % Variance
· More or (Less) than
BUDGET BUDGET the 2003 Budget
REVENUES
TAXATION CITY GENERAL & URBAN SERVICE 35,550,700 37,559,300 2,008,600 5.6
TAXATION WASTE MANAGEMENT 4,867,000 5,422,525 555,525 11.4
TAXATION OTHER CHARGES 0 8,500 8,500 100.O
PAYMENT IN LIEU OF TAXATION 4,420,000 6,874,800 2,454,800 1.O
GRANTS 2,486,500 3,267,500 781,000 31.4
OTHER MUNICIPAL GOVERNMENT 21,000 25,200 4,200 20.O
LICENCES 531,100 455,000 (76,100) (14.3)
PERMITS 2,186,800 1,458,000 (708,800) (32.7)
RENTS 126,600 63,500 (63,100)1 (49.8)
SERVICE CHARGES 1,082,400 279,143 (803,257)! (74.2)
USER FEES 2,269,300 2,774,400 505,100 22.3
CONCESSIONS 286,300 200,000 (86,300) (30.1)
FINES 633,300 780,000 146,700 23.2
PENALTIES AND INTEREST 1,930,000 2,150,000 220,000 11.4
INVESTMENT INCOME 1,945,000 1,920,000 (25,000) (1.3
DONATIONS 1,000 0 (1,000) (100.0)
SALES 328,600 551,500 222,900 67.8
OTHER REVENUE 2,616,000 2,600,000 (16,000) (0.6)
T~RANSFERS FROM RESERVES AND RES.FUNDS 3,807,150 6,003,632 2,196,482 57.7
~L~AL REVENUES 65,068,750 72,393,000 7,324,250 11.3
EXPENSES
WAGES AND BENEFITS 28,301,327 31,427,698 3,128,371 11.0
LONG TERM DEBT INTEREST CHARGES 234,060 365,170 131,110 56.0
LONG TERM DEBT PRINCIPAL PAYMENTS 639,600 765,870 126,270 19.7
MATERIALS 8,963,175 8,728,586 (234,589) (2.6)
CONTRACT SERVICES 8,975,100 10,125,420 1,150,320 12.8
RENTS AND FINANCIAL 1,025,740 1,038,865 13,125 1.3
EXTERNAL TRANSFERS 6,826,848 7,453,097 626,249 9.2
TRANSFERS TO CAPITAL AND RESERVES 8,242,300 10,573,400 2,331,100 28.3
INTERFUNCTIONAL TRANSFERS 1,860,600 1,914,894 54~294 2.9
TOTAL EXPENSES 65,068,750 72,393,000 7,324,250 11.3
REVENUES LESS EXPENSES 0 0 0 0.0
CITY OF NIAGARA FALLS SCHEDULE 'B'
2004 GENERAL PURPOSES BUDGET
GRANTS TO AGENCIES, BOARD AND COMMISSIONS
~ ) 2003 2004 2004 $ Variance % Variance
APPROVED ORIGINAL REVISED More or (Less) than
REQUEST REQUEST REQUEST the 2003 Request
INiagara Falls Humane Society - Operating $361,000 $406,125 $374,500 $13,500 3.7%
Niagara Falls Humane Society - Capital Contribution 0 50,000 0 0 0.0%
361,000 456,125 374,5001 13,500 3.7%
tNiagara Falls Transit Commission 1,611,500 2,302,600 2,227,600 616,100 38.2%
lNiagara Chair-A-Van 299,500 317,100 317,100 17,600 5~9%
Niagara Airport Commission 78,000 78,000 78,000 0 0.0%
lGreater Niagara General Hospital Foundation 100,000 100,000 100,000 0 0.0%
I SOCIAL ASSISTANCE:
I Project Share 95,000 147,488 147,488 52,488 55.3%
IWomen',s Place in South Niagara 25,000 25,000 25,000 0 0.0%
IWomen s Place in South Niagara - Capital Contribution 0 ??? 0 0 0.0%
IYoung Women's Christian Association 85,000 0 0 (85,00( -100.0%
205,000 172,488 172,488 (32,51; -15.9%
I PARKS GROUNDS MAINTENANCE:
/Firemen's Park 15,200 15,200 15,200 0 0.0%
I Chippawa Lions Park 26,700 26,700 26,700 0 0.0%
t Optimist Park 30,000 30,000 30,000 0 0.0%
71,900 71,900 71,900 0 0.0%
~)ptimist Park - Capital Contribution [$750,000 over 3 yearn 0 250,000 0 0 0.0%
NIAGARA FALLS RECREATION COMMISSION:
Boy's and Gid's Club 191,900 210,000 191,900 0 0.0%
Niagara Falls Badminton Tennis Club 5,000 5,000 5,000 0 0.0%
Niagara Falls Lighting Gymnastic Club 3,000 2,000 2,000 (1,000', -33.3%
Niagara Falls Horticultural Society 800 800 800 0 0.0%
Niagara Falls Lawn Bowling Club 4,000 4,000 4,000 0 0.0%
Niagara Falls Summer Plaground Committee 15,800 15,800 t 5,800 0 0.0%
Niagara Falls Summer Swim Lessons Committee 12,400 12,400 12,400 0 O.0%
Stamford Lions 3,550 3,550 3,550 0 0.0%
Young Men's Christian Association 92,100 92,100 92,100 0 0.0%
328,550 345,650 327,550 (1,00(; -0.3%
Niagara Falls Library Board 2,542,542 2,705,300 2,644,242 101,700 4.0%
MUSEUMS:
Niagara Falls Board of Museums 3,879 3,879 3,879 0 0.0%
Lundy's Lane Museum 114,504 140,912 119,084 4,580 4.0%
Willoughby Museum 42,923 49,693 44,640 1,717 4.0%
Battle Ground Hotel 35,000 49,633 36,064 1,064 3.0%
196,306 244,117 203,667 7,361 3.7%
NIAGARA FALLS ARTS AND CULTURE COMMISSION:
Niegara Fails Concert Band 4,000 4,000 4,000 0 0.0%
St. John Ambulance Boat Patrol 29,000 32,500 29,000 0 0.0%
TOURISM DEVELOPMENT:
Niagara Falls Illumination Board 34,550 34,550 34,550 0 0.0%
~iagara Falls Tourism Bureau 965,000 965,000 868,500 (96,50(; -10.0%
999,550 999,550 903,050 (96,50(; -9.7%
TOTAL REQUESTS $6,826,848 $81079,330 $7,453,097 $626,249 9.2%
Z
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Z
o
TABLE OF CONTENTS
ADMINISTRATIVE SERVICES
SUMMARY .................................................
CITY COUNCt'L, COMMITTEESf BOARDS AND COMMISSIONS
Mayor and Members of Council .............................. 3
Office of Mayor and Council Support ................... 4
Recreation Commission ............................. 5
Arts and Culture Commission ......................... 6
Committee of Adjustment ........................... 7
Civic Committee ................................... 8
Parking and Traffic Committee ....................... 9
Environmental and Greening Committee ................ :tO
Trails and Bikeways Committee ..................... 11
Heritage Week Niagara Committee ................... 12
Mayor's Youth Advisory Committee ................... :[3
Discretionary Grants .............................. :[4
Niagara Falls Humane Society ....................... :[5
Niagara Falls Transit Commission .................... :[6
Niagara Chair-A-Van Services ...................... :[7
Niagara District Airport Services .................... 1.8
Niagara General Hospital Foundation ................ 1.9
Social and Family Services - Permissive Grants .......... 20
Niagara Falls Library Board ........................... 2:[
Museums Services .................................. 22
Municipal Heritage Committee (LACAC) .................. 23
Tourism Development Services ........................ 24
Business Improvement Areas Services .................. 25
CHIEF ADMINISTRATTVE OFFICER
Chief Administrative Officer and Support ..................... 26
Community Services Directors and Support ................... 27
Other Corporate Management and Support .................... 28
EXECUTIVE DIRECTOR OF CORPORATE SERVICES
Executive Director of Corporate Services and Support ........... 29
Corporate Service Directors and Support ..................... 30
Human Resource Services
Labour and Employee Relations Services ................. 31.
Staffing and Compensation Services ..................... 32
WSIB, Health, Safety, Sick Services ...................... 33
Training and Development Services ..................... 34
Employee Benefit Services ............................. 35
CTTY CLERK
Election Services ................................ 36
Licencing Services ............................... 37
Statistics and Records Services ..................... 38
Procurement Services ............................ 39
Mail and Courier Services .......................... 40
Reception and Switchboard Services ................. 41
Print Shop Services 42
News Release and Advertising Services ............... 43
CTTY SOLTCITOR
Corporate Legal Services .................................. 44
:[nsurance Claim Services .................................. 4S
]Insurance Policy Services ................................. 46
CTTY TREASURER
Debt and Znvestment Services .............................. 47
Auditing Services ........................................ 48
Taxation Services
Property Taxation ........................... 49
Waste Management Taxation .................
Taxation Other Levy Charges ................. 52
Taxation Payments in Lieu ................... 53
Taxation Services for Fees ................... 54
Revenue and Receivable Services ................. 55
Accounting and Reporting Services ................ 56
Payroll Services ............................... 57
Payable and Payment Services ................... 58
DTRECTOR OF INFORMATTON SERVTCES
Znformation Software Services ............................. 59
Znformation Hardware Services ............................. 60
Data, Voice, Communication Services ........................ 6:t
2
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TABLE OF CONTENTS
PROTECTZON SERVTCES
SUMMARY ............................................... 62
CHZEF OF FZRE SERVZCES
Fire Suppression Services .............................. 63
Fire Training Services ............................... 64
Fire Prevention Services ............................ 65
Fire Communication Services ......................... 66
Fire Facilities Services .............................. 67
Other Fire Services ................................. 68
Emergency Measures Services .......................... 69
CHZEF BUZLDTNG OFFI'CI'AL
Building Znspection Services ............................... 70
Bylaw Enforcement Services ...............................
c
TABLE OF CONTENTS
TRANSPORTATION AND
ENVIRONMENTAL SERVICES
SUMMARY ............................................... 72
DTRECTOR OF MUNTCTPAL WORKS
Roadway Services
Paved Surface Maintenance Services .................... 73
Unpaved Surface Maintenance Services ................. 74
Sidewalk Maintenance Services ........................ 75
Drainage Ditch, Culvert Maintenance Services ............
Roadside Maintenance Services ........................ 77
Other Roadway Services ............................. 78
Winter Control Services
Paved Surface Maintenance Services ..................... 7g
Sidewalk Maintenance Services ......................... 80
Traffic and Parking Services
Parking Lot Maintenance Services ....................... 8:1.
Parking Control Services .............................. 82
Traffic Control Services ............................... 83
Street Lighting Services
Street Lighting Maintenance Services .................... 84
Street Lighting Power Charges ......................... 85
Engineering Services
Engineering Administration Services ..................... 86
Transportation Services ............................... 87
Development Services ................................ 88
Infrastructure Services ............................... 89
Project and Construction Services ....................... 90
Fleet, Equipment, Facility Services
Fleet Services .......................................
Equipment Services .................................. 92
Facility Services ..................................... 93
Property Services .................................... 94
Other Transportation Services .............................. 9S
Environmental Services
Storm Sewer System Maintenance Services ............... 96
Waste Collection Regional Charges ...................... 97
Recycling Collection Services ........................... 98
Hazardous Waste Processing Services ................... 99
Pest Control Services ................................ :t00
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TABLE OF CONTENTS
PARKS, RECREATTON AND
CULTURE SERVTCES
SUMMARY .............................................. lOt
DIRECTOR OF PARKS, RECREATION AND CULTURE
Cemeteries Services
Cemeteries Grounds Maintenance Services ............... 102
Cemeteries Trees Maintenance Services ................. 103
Cemeteries Facilities Services ......................... 104
Cemeteries Burial Services ........................... 105
Cemeteries Other Services ............................ 106
Parks
Parks Grounds Maintenance Services ................... 107
Parks Trees Haintenance Services ...................... 108
Parks Facilities Maintenance Services ................... 109
Other Parks Services 110
Recreation Programs
Athletic Fields Programs ............................. 111
Arenas Programs ................................... 112
Pools Programs ............ 113
Community Centres Programs.iiiiiiiiiiiiiiiiiiiiiill 114
Other Recreation Programs ........................... 115
Recreation Facilities
Arenas Maintenance Services .................... 116
Pools Maintenance Services ................... 117
Community Centres Maintenance Services ....... 118
Other Recreation Facilities Services ............ 119
Other Cultural Services ......................... 120
Parks, Recreation, Culture Management Services i ..... 121
Community Development Services .................. 122
Landscape Design Services ....................... 123
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TABLE OF CONTENTS
PLANNTNG AND
DEVELOPMENT SERVTCES
SUMMARY .............................................. 124
C1'TY PLANNER
Planning Services ....................................... 125
Zoning Services ........................................ 126
DIRECTOR OF BUSZNESS DEVELOPMENT SERVICES
Community Tmprovement Areas Services .................... 127
Business Development Services ............................ 128
Small Business Enterprise Centre Services ................... 129
Corporate Services Department
The City of t~i~ Finance Division Kenneth E. Burden
~J~gara Falls ~1 ~.,~4310 Queen Street Director
]lnada ~, ~lP, O, Box 1023
r".~l~ J~l~ Niagara Falls, ON L2E 6X5
~ I web site: www.city.niagarafalls,on,ca
Tel.: (905) 356-7521
Fax: (905) 356-2016
E-maih kburden@city,niagarafalts.on.ca
May 4, 2004
His Worship Mayor Ted Salci
and Members of the Municipal Council
City of Niagara Falls, Ontario
Members:
Re: 2004 General Purposes Budget
The Chief Administrative Officer directed Staff to prepare the 2004 General Purposes Budget in
compliance with City Council's goal "to make every effort to maintain current levels of service
without placing an increased burden on the City's Taxpayers". Staff has cooperatively prepared an
operating plan for 2004 that will restrain expenses, increase non-levied revenues, and maintain the
residential property tax rate.
Listed below are items originally included in the March l, 2004 General Purposes Budget discussion
(F-2004-15). These items have been removed to help maintain the 2003 residential tax rate.
Corporate Services
Clerk's Services
Materials for Print Shop Services 50,000
Raman Resources
Staffing and Compensation 406,000
Employee Recognition 15;000
Information Systems
Replacement of Amanda for Building and Clerk's 200,000
Software purchases 20,000
Hardware purchases 80,000
Communication purchases 65,000
Insurance Services
Claim payments (leaving balance of $150,000) 200,000
Legal Services
Contract Services 90,000
Taxation
Conlxact Services - assessment verification services 10,000
1,136,000
Working Together to Serve Our Community
Clerks Finance Human Resources Information Systems · Legal Planning & Development
-2-
Fire Services
Communications equipment repair and replacement 20,900
Reimbursement of repair and renovation costs at Station 5 20,200
Eliminate additional bunker gear 18,500
Reduce SCBA and related equipment repair and purchases 18,000
Reduce the repairs to portable equipment for the volunteer stations 4,200
81,800
Municipal Works
Infrastructure Services
Mist Area Monitoring 25,000
Shriners Creek Sampling 25,000
Weeping Tile Monitoring 25,000
Student 20,300
New Technology 10,000
Development Services
Transportation Tech. Late hire 15,000
Engineering Services
Project Manager late hire 14,000
Traffic Calming 25,000
TIS Peer Reviews 25,000
Transportation Services - Fleet
Sign Track 20,000
Road Closed Trailer 20,000
Parking Control - Services
GPS Units 4,000
Students 20,000
Traffic Control Services - Contract
Traffic Signal Upgrades 310,000
Traffic Loop Repairs 80,000
Intersection Rebuild 50,000
Drainage - Crradall Ditching 35,000
Paved Surface Patching 75,000
Sidewalk - TAC Crew 120,000
Sidewalk - Inspection 10,000
Road Patrol Supervisor late hire 15,000
Streetlighting
Power 10,000
Digitization 35,000
Materials 5,500
Contract Services 60,000
Winter Control
Amendment 2003 (250,000) 200,000
Salt Spreader 85,000
GPS Units 25,000
Climate Monitor 251000
Plow Sensors 10,000
GPS Service Charges 10,000
Amendmem 2003 13,000
1,421,800
-3-
Parks, Recreation & Culture
Park Security maintain status quo $6,000 budgeted 11,000
Eliminate one (1) seasonal staff from Parks 23,300
-will not install & remove bases in Oakes, Kef,
Houck Parks ball diamonds
- staff back up also reduced
N. F. Lions Outdoor Skating Rink will not open until Jan. 15,000
-normally open Dec through March - weather permitting
Cemeteries ground maintenance seasonal staff reduced by 2 weeks 19,400
-will impact Fall clean-up leaf ~noval prog.
Reduce increase to arena reserve fund
-for significant repairs & equipment replacement
Eliminate new Centennial Parade Float 40,000
-requested by former Civic Committee
Reduced increase to reserves 15,000
- increased funding required for repairs for 4 aging ice facilities
Special Events:
Reduce Additional Funding for Canada Day 11,700
Sports Wall of Fame 1,000
- event will take place every 2 years instead of annually
New Programs 5,000
Reduce number of parades for City Float 11,700
Corporate Challenge 600
Arbour Week 500
Heritage Week 500
Improvements to Santa Party & Santa Claus Parade 4,000
Insurance for new Council approved events 2,000
Support for Council approved conventions 2.000
162~700
Municipal Grants 376,200
Waste Management Regional Costs 477,400
Transfer to Capital and Reserves 102,200
Internal Rents 5L500
TOTAL 3.809.600
In order to facilitate Council's discussion of the 2004 General Purposes Budget, these items have
been selected by Staff for Council's consideration. Council may wish to add any of the listed items
to the proposed budget, however, all additions will necessarily require either an increase in revenues
or a decrease in other expenditures in order to maintain a balanced budget.
Yours truly,
Ken Burden
Director of Finance
EXECUTIVE SUMMARY
Each year, the City of Niagara Falls develops a budget to pay for the day-to-day services it
provides to citizens and to pay for the major repair, replacement or additions to the City's assets.
Decisions are made annually about services and purchases that directly affect the citizens of
Niagara Falls. Funding levels for services such as fire, road maintenance, arenas, parks, transit,
water and sewer systems, all need to be decided. This handbook is intended to help the reader
understand some of the complexities of developing a "capital budget"; a multi-year plan that
can facilitate the major repair, replacement or addition of the City's buildings, equipment, roads,
water and sewer systems, etc. The handbook addresses the many important factors that must
be considered, including sources of funding, kinds of capita[ projects and priorities.
~The Corporation of the City of Niagara Falls
is dedicated to providing accountable and quality services
that promote a safe, healthy, prosperous and a.ractive community
in which to live, work, play and visit.'
Niagara Falls City Council took the first step in establishing a clear and unified direction for their
term of office by holding a Strategic Planning Session on Monday, January 5, 2004.
Council determined their strategic priorities for the next three years by identifying the following
six areas:
Infrastructure Rehabilitation
Transportation
Community Recreation Facilities
New Development and Re-D~velopment
Quality Service
Communication Strategy/Open Government
Public process is the mantra of the Niagara Falls City Council. City Council has focussed on
seeking public input and is engaging residents and businesses this year in a public dialogue, the
outcome of which will not only establish the 2004 budget, but will ultimately determine our
community priorities and values. The purpose of this handbook is to inform, involve and invoke
public opinion.
"WHAT IS A CAPITAL BUDGET?"
TABLE OF CONTENTS
Paqe
1. Introduction 1
1.1 introduction ................................................
1.2 Overview of the Municipal Financial System ..................... 1
1.3 What is a Capital Budget? .................................... 4
1.4 Definition of Capital Expenditure .............................. 4
1.5 Purpose and Who Uses the Capital Budget ...................... 8
2. Capital Budget Process 10
} 2.1 Overview of the Process ............. 10
2.2 Policies to Guide the Process ................................ 19
3. Capital Financing Alternatives 22
3.1 Summary of Capital Financing Alternatives ..................... 22
3.2 Internal Financing ...................................... .... 22
3.3 External Financing .......................................... 25
4. Debt Management 26
4.1 Overview ............................................... 26
4.2 Guidelines - Annual Repayment Limit Calculation ............. 27
4.3 Debt Management - Long-Term Debt vs. Pay-As-You-Go ........ 29
1. INTRODUCTION
1.1 INTRODUCTION
Capital budgeting is a very important planning tool for municipalities as it allows them to
provide for the necessary infrastructure to maintain or enhance future service levels.
Through capital budgeting, municipalities can plan future operating budget expenditure,
debt repayment and potential reserve fund needs in order to manage the financial position
of a municipality over a five to ten-year period. Capital budgets provide the basis for the
implementation of official plans, master plans and strategic plans and also provide the
financial mechanism to implement Council's planning and fiscal policies.
The purpose of this document is to assist the City of Niagara Falls in the development of its
capital infrastructure planning and budgeting processes. The document recognizes the
increasing need to prioritize various competing capital requirements and the application of
scarce financial resources to those needs. It is important that City Council has 'the tools
available in order to project the financial impacts of their decisions over a number of fiscal
periods.
Recently there have been many changes to municipal legislation and financial reporting
procedures. Further changes may be made in the future which could affect aspects of this
document. It is, therefore, recommended that provincial legislation and reporting
requirements continue to be monitored as part of the municipality's ongoing capital
budgeting process.
1.2 OVERVIEW OF THE MUNICIPAL FINANCIAL SYSTEM
Municipalities in Ontario use Fund Accounting as the basis for recording and reporting of
all financial transactions. Fund Accounting can be defined as an "accounlSng system in
which a self-balancing group of accounts is provided for each accounffng entity established
by legal contractual, or voluntary action, especially in government units". In more simple
terms, Ontario municipalities practice a form of accounting which uses three funds: a
revenue (or operating) fund, a capital fund and a reserve fund. Each of these funds has a
specific defined use; within that use, expenditures are financed by various sources. The
three funds are described as follows:
2
Revenue Fund
The revenue fund or the "operating" or "general fund" as it is often called, is the principal
fund found in all municipalities. This is the fund into which the main sources of financing
available to the municipality flow. Taxation revenue, grants, interest earned on
investments, service charges, licenses and permits are all recorded in this fund. This fund
also records the everyday operating expenditures of the municipality. The revenue fund
initially records most of the sources of financing that are eventually transferred to the
capital fund and the reserve funds.
Capital Fund
The capital fund is used to record the financing sources and expenditures for the
acquisition, rehabilita~on or replacement of the capital assets of the municipality. In
general, capital assets refer to buildings, equipment and infrastructure of the municipality.
Included here are municipal buildings, arenas, trucks, graders, roads, water/sewerage
systems and the like.
Reserve Funds
Reserve ftmds are those funds that have been set aside either by a by-law of the council or
by a requirement of provincial legislation to meet a future event. As a result, reserve funds
could be called either "permissive", those set up by Council or "regulatory" (or obligatory),
those set up by virtue of a requirement of a provincial statute. As a general principle,
municipal Cotmcils may set up reserve funds for any purpose for which they have the
authority to spend money.
An overview of these three funds, how they inter-relate and the more common
expenditures and revenues associated with each fund is provided in Figure 1~1. This
document will focus on the capital fund. References to how this fund interacts with the
other funds will also be addressed.
I
4
1.3 WHAT IS A CAPITAL BUDGET?
A capital budget is a multi-year financial plan, usually five or ten years, for the construction
or acquisition of capital works. The plan, once complete, should provide for the plam~ing of
future financial resources required to finance the project, identify the future financial
resources to be allocated from the operaling (revenue fund) budget to operate and maintain
the capital asset once it is acquired, and integrate with the municipality's ongoing
management control system.
The capital budget is distinguished from an operating budget. An operating budget
normally provides for the day to day expenditures of a municipality for items such as
salaries, wages, benefits, heat, hydro, maintenance of buildings and infrastructure, etc.,
whereas the capital budget plans for the acquisition or rehabilitation of capital assets.
1.4 DEFINITION OF CAPITAL EXPENDITURE
The manner in which the term capital is interpreted and applied for municipal purposes
tends to vary from municipality to municipality. Many expenditures cannot be easily
classified as capital or operating as they may display characteristics of both. Deciding what
is capital is a matter of judgment and may be difficult in some cases. Accordingly, where
appropriate a municipality may wish to seek professional advice. However, for general
reference purposes, a number of definitions of capital found from several sources are
provided below.
The Province is presently reviewing the definition of capital and may provide further
instructions to mtmicipahties with the 2000 Financial Information Return packages. This
new definition would take into account the Public Sector Accounting Board (PSAB) rules
respecting capital.
In the document, "Instructions for Completing the 1998 Financial Information Return", the
following definition of capital expenditure is provided:
"A capital expenditure is any significant expenditure incurred to acquire or
improve land, buildings, engineering structures, machinery and equipment.
It normally confers a benefit lasting beyond one year and results in the
acquisition or extension of the life of a fixed asset. It includes vehicles, office
furniture and equipment. An expenditure on repair or maintenance designed
5
to maintain an asset in its original state is not a capital expenditure. A capital
expenditure may include the costs of studies, etc., undertaken in connection
with acquiring land or constructing buildings. It may also include interest on
temporary borrowings for capital purposes and transfers for capital purposes
to unconsolidated local entities, hospitals, universities and similar
organizations."
The Development Charges Act, 1997 (section 5(3)) provides a similar definition:
"The following are capital costs .... if they are incurred or proposed to be incurred by
a municipality or a local board directly or by others on behalf of, and as authorized
by, a municipality or local board:
1. Costs to acquire land or an interest in land, including a leasehold interest.
2. Costs to improve land.
3. Costs to acquire, lease, construct or improve buildings and structures.
4. Costs to acquire, lease, construct or improve facilities including,
i. rolling stock with an estimated useful life of seven years or more,
ii. furniture and equipment, other than computer equipment, and
iii. materials acquired for circulation, reference or information purposes
by a library board as defined in the Public L~graries Act.
5. Costs to undertake studies in connection with any of the matters referred to in
paragraphs 1 to 4.
6. Costs of the development charge background study ...
7. Interest on money borrowed to pay for costs described in paragraphs 1 to 4."
The Public Sector Accounting Board (PSAB) may provide an authoritative guide for
Municipal Reporl~ng requirements at some time in the future. The Canadian Institute of
Chartered Accountants (CICA) "Public Sector Accounting Recommendations - September,
1997' document provides the following definitions:
6
"Tangible capital assets are non-financial assets having physical substance
that are acquired, constructed or developed and:
(i) are held for use in the production or supply of goods and services;
(ii) have useful lives extending beyond an accounting period and are intended to
be used on a continuing basis; and
(iii) are not intended for sale in the ordinary course of operations.
Cost is the amount of consideration given up to acquire, construct, develop or
better a tangible capital asset, and includes all costs directly attributable to
acquisition, construction, development, or betterment of the tangible capital
asset, including installing the asset at the location and in the condition
necessary for its intended use. The cost of a contributed tangible capital asset
is considered to be equal to its fair value at the date of contribution."
In summary, from the above, capital works may be defined to include the following
elements:
· acquisition and construction of new buildings, structures, facilities, equipment,
rolling stock, furnishings, studies, development and purchase of land, and all
associated items to bring the foregoing into function operation; or
· major rehabilitation of the above;
· normally has a useful life of more than one year.
For ease of administration, capital expenditures may have a minimum dollar amount
associated with them (e.g. some municipalities define items in excess of $5,000 or $10,000 as
a capital item). Figure 1-2 provides an informal comparison of capital asset expenditures
versus expenditures which would typically be included in a municipality's operating
budget.
FIGURE 1-2
TYPE OF CAPITAL IMPROVEMENT OPERATIONS AND MAINTENANCE
FACILITY
Streets and · Street paving (residential and arterials) ° Alley · Paving repair, even though rideabilitymay
Parkways resurfacing · Physical alteration of street capacity or improve · Sealcoating and other maintenance
design,including related landscaping
Sidewalks · Sidewalk replacement, new sidewalks,sidewalk · Routine repair/patching
intersections
Traffic · New or upgraded signal equipment or · Equipment repair or replacement temaintain
otherphysical improvement_ts that enhance safety system operations * Lane marking and
orsystem capabilities delineation · Meter replacement
Street · Conversion of street lights to new luminaries * Replacement or repair Of damaged lights
lightfixtures or fixtures
Parking · Major repair to structure · Physical design or · Sealing floors to prevent chlorideintrusion ·
capacity improveme~tts · New construction · Preventive maintenance and minor repair
Computerized revenue control and otheroperating
improvements
Public buildings · Major remodelling and structural alterations ° Preventive maintenance repairs that donot
toimprove space utilization or capacity · Major sig~ficantly upgrade the s~ucture orincrease
replacement or upgrading of design ofmajor its previously estimated nsefullife (e.g., minor
buildings components (roof replacement,major roof repair)
heating system improvements) ° Energy-related
physicaf improvement
programs · New construction
Water treat~nent · Rehabilitation of major treatment · General repair or maintenance ofequipment
facilitycomponents (e.g., reservoir repair) to or facilities to continueoperations (e.g., wall
extenduseful life · Reservoir connections, new and ceiling repair,cone motors and controls,
sludge beds, otherprojects to upgrade treatment sludge bedcleaning)
capacity,flexibility or quality · New construction
Water and sewer · Large water mains (replacement) ° Sewer · Repair of isolated section of broken
mains separation (sewer modifications) · Flood prevention orcollapsed sewer or water mains, catchbasins,
projects (sewer modifications) · Correction of low- sewer outlets, and repair fixturesas needed {o
pressure areas (small mains) · Other sewer or water maintain operations
main replacement inconjunction with street paving ·
Gates and manholes to improve systemflexibility ·
New construction
Parks , Boulevard reforestation ° Removal of diseased trees from
· New park land development, major upgradingof boulevards or parks · Repair or replacement of
park or park facilities, major park or parkbuilding furnishings,equipment or landscape planting
rehabilitation · New park buildings · Physical that donor substantially upgrade the park ·
improvements, lakeshoremodifications or other General maintenance and repair of parks,park
facilities required forlake pollution control facilities and buildings
Excerpt from "Capital Improvement Pl~gramming - A Guide for Smaller Municipalities, GFOA, 1996'
8
PURPOSE AND WHO USES THE CAPITAL BUDGET
Municipal multi-year capital forecasts can have widespread purposes and benefits. Many
public and private sector groups may have an interest in reviewing these forecasts. An
overview of various groups and potential use of the forecast is provided below:
Municipal Council:
To a municipal council, a capital budget represents a statement of intention to proceed with
a certain program of capital works and services. Within specific programs, council
establishes priorities for servicing and spending while controlling the ultimate impact on
the tax/ratepayer over a five year (or longer) planning horizon. The budget also provides a
control mechanism for future debt levels.
Council's input to the process is imperative as it will establish the direction the municipality
will take over the short to medium term. Since the capital budget affects future operating
expenditures, appropriate guidance should be provided during the capital budgeting
) process to ensure that desired service levels and tax levels are managed and planned.
In Ont~io, the degree of council's involvement in the capital budgeting process varies from
municipality to municipality. For example, councils may participate directly in the capital
budgeting process, or they may establish policy direction and provide key input at various
stages of the process. In each case, the council remains legally responsible for all budget.
decisions. Individual municipalities establish individualized processes to achieve local
objectives. Council's involvement, in whatever form it may take, is impor~mt to the future
financial health of the municipality.
Municipal Administration:
The capital budget represents an integrated and coordinate effort of the municipality and
relies on inputs from several areas of municipal responsibility:
1. PUBLIC WORKS
Provides the analysis of needs, pre-planning and prioritization of services to be constructed
in the future. With respect to ongoing construction of works, Public Works monitors quality
control of the construction and expenditures within council-established spending limits.
9
2. FINANCE/TREASURY
To the Finance/Treasury department, the capital budget is a key financial planning
document. From this document, Finance monitors existing and future debt levels, present
and future impacts (debt charges and operating costs) on the operating budget and
taxpayer rates, future grant applications, project monitoring, and budget control.
3. PLANNING
The capital budget represents a translation of planning policies and objectives into physical
development plan. The Planning department reviews the projects in the capital budget to
ascertain whether their implementa~_on is in conformity with the Official Plan.
4. OTHER DEPARTMENTS
Other departments within the municipality (Fire, Police, Parks, Recreation, Library, Day
Care, Homes for the Aged, etc.) also provide input into this document for the phased
planning of their major works.
Upper/Lower Tier Government:
Both the upper tiers (regions, counties, and district) and lower tiers (City, Town, Township,
Village, etc.) review each others' budget documents to ensure that certain works (eg. roads,
water mains, sewer mains, etc.) can be coordinate with works planned by the other tier
government. Cost savings can be achieved by undertaking certain works in a coordinate
Provincial Government:
The Ministry of Municipal Affairs and Housing (MMAH) is the provincial ministry
responsible for municipal issues. MMAH's vision for the municipal sector is that the sector
should be more efficient, accountable and effective in addressing local needs. One of
MMAH's key strategies is to work toward providing the Ministry and municipalities with
opportunities to improve skills and tools to implement new responsibilities and directions,
and to manage change. Also, the legislation administered by MMAH provides the primary
governance and financial framework for local government.
MMAH's primary interest in developing a structured approach to capital budgeting is to
facilitate informed decision making at the local level to meet capital needs. A sound capital
budgeting system is part of an overall prudent and efficient financial management system
that produces useful data and information.
10
MMAH often relies on the Financial Information Returns (FIR's) to obtain information and
financial data for developing policies, programs or satisfying regulatory or statistical needs.
The availability of information from capital budgets may provide useful and timely
information on municipal capital needs.
Business Community:
The business community looks to the capital budget for an indication of the timing, location
and types of services the municipality is planning to construct. Developers, or existing
businesses, review this information to assist in their planning for development or potential
expansion.
Financial Community:
The financial community reviews the capital budget to assess forward planning and future
anticipated debt levels. Potential purchasers of municipal debentures are most concerned
with the credit worthiness or risk involved in their purchase. More specifically, they are
concerned with the municipality's future ability to pay their debt obligations.
2. CAPITAL BUDGET PROCESS
2.1 OVERVIEW OF THE PROCESS
Like the operating budgeting process, the capital budgeting process consists of a coordinate
inter-departmental process to establish a financing plan for the new construction,
acquisition or replacement of municipal assets. These assets are normally an integral part of
providing municipal services to constituents. However, since financial resources available
to a municipality are limited, a process should be established to evaluate the competing
needs of various municipal services in order to maximize the use of these financial
resources in the area of highest priority to the municipality. To achieve this, a process
should be put in place to involve all departments, senior staff and Council, in establishing
management and financial policies and a system for prioritizing the capital works.
The capital budget is developed and given final approval at the same time as the operaling
budget. However, in some cases (i.e. larger municipalities) the capital budgets may be
finalized before the operating budgets. As noted in Chapter 1, the two budgets are inter-
related and can affect one other. For example, the capital budget may require contributions
It
to offset the need for debt, hence these contributions must be included in the operating
budget. Alternatively, a major facility may be slated for completion mid-year and require
an operating budget provision to pay for utility costs, staffing, and other operath~g costs.
Therefore, the process should be aligned with the operating budget to ensure that proper
consideration is given to the decisions being made in both budgets. While the operating
and capital budgets are inter-related, some municipalities do prefer to achieve a separation
between the two processes. Having a capital budget approved very early in the cycle gives
the municipality the advantage of being ready to tender projects early in the construction
season, thereby achieving optimal tender prices. It also helps to spread the heavy workload
associated with the budget process over a longer period of time, thereby achieving a more
efficient use of staff resources. The capital budget can be separated from the operating
budget cycle and approved in advance of the operating budget, if it is prepared within
financial guidelines that are acceptable and have received the prior approval of Council.
Council will only be in a position to approve the capital budget guidelines if the financial
impact of those guidelines is known and understood in advance of actually providing final
approval to the operating budget. This alternative process requires the ability to accurately
analyze and project future financial impacts with reasonable reliability.
Figure 2-1 provides an overview of the capital budgeting process. The left side of the figure
provides the sequencing of the actions to be undertaken in the process while the right side
of the schedule provides a summary of the activity which occurs at that phase of the
process. This process involves the following elements:
A. Establish an Administrative Structure
The preparation of the capital plan requires a coordinate approach by various departments
within the municipality. It is, therefore, import~mt that all user departments with capital
needs be included in the process. Often in smaller municipalities, departments are
represented by the departanent head. In larger municipalities, individuals within
departments who normally identify and oversee the construction of the individual projects
are to be involved. This coordination of effort may be achieved by establishing a committee.
The overall function of the committee will be similar in either Situation; however, the
process outlined in Figure 2-1 may need to be modified to include the involvement of the
municipality's senior staff or management team if this is appropriate to the situation.
Some municipalities also include 'the CAO/Administrator and may have individual council
members sitting on the committee. Once again, the makeup of the committee is somewhat
flexible and will reflect the way the municipality typically establishes its processes.
12
B. Timelines/Policies
The first order of the commi~ee will be to establish timelines for carrying out the process.
As noted earlier, the process should coincide with the operating budget process; however,
most municipalities normally establish the capital budget process somewhat before the
operating budget so that the identified impacts can be assessed and feedback to the capital
budget can occur prior to either budget receiving final adoption. The timelines should also
establish the critical dates for certain actions in the process (i.e. submission of project sheets,
analysis preparation, review with committee/management team, council presentation, etc.).
The committee will also need to consider policies which will assist in developing the capital
budget. These pOlicies will include both management policies (which establish how the
capital budget process on individual works are considered corporately) and financial
policies (establishing the financial framework within which the capital budget will be
prepared). These policies are discussed later in this chapter. In addition, the committee will
need to consider a basis for prioritizing the projects. This prioritization is discussed further
in Chapter 4.
Lastly, the committee should review the information to be submitted and how it will be
provided. Sample forms outlining the key information which should be collected in this
process are detailed in Chapter 4. Normally, the Finance/Treasury department is
responsible for the preparation of the project sheet forms and analytical information to be
used in this process. As well, they should be responsible for clarifying any questions raised
by the user departments throughout the process.
C. Review Work in Progress and New Capital Needs
The user departments will be required to identify new capital needs for maintaining and
enhancing their service provision. Identification of these needs can arise from many
different sources, as follows:
· master plans
· strategic plans
· Official Plan
· community committee input
· service enhancement objectives
13
· council requests
· review of asset inventory (asset replacement)
· development servicing needs
· senior level of government initiatives
· emergency issues or directives from public health agency
· joint initiatives with other municipalities, agencies or community groups
While not an exhaustive list, the above represents the more common sources for identifying
new capital projects. As the individual departments will be most knowledgeable of these
potential needs, establishing the specific nature of the capital request is best defined by the
user department. A representative within the municipality should be deemed responsible
for administering requests made by outside boards or agencies.
In addition to new projects, existing projects, which have been approved by council and are
being constructed, will also have to be reviewed. The key considerations in this review are
the status of the emerging costs vs. approved budget and the timing of when expenditures
are to be made during the remaining construction period. To assist in this evaluation, the
Finance/Treasury department may wish to provide the most current expenditure and
budget information to the user departments (if this isn't already part of the normal
reporting process). User departments will be required to discuss the status of these works
with the individual contractors to update the project completion information. This review
is very important to the capital budgeting process since delayed projects or projects coming
in under budget may free up financial resources. Alternatively, projects that experience cost
overruns, if approved by council, will have first call on financial resources. Hence, it is
important that this review be as accurate as possible.
D. Complete Capital Information Sheets
Often, it is easier to identify the need for an individual project than to estimate the
expenditure budget. The capital information sheets presented in Chapter 4 provide the
more common cost components of capital works; however, individual departments may
still experience difficulty in developing a budget for a project. Listed below are several
sources to contact in developing the budget estimates:
14
· cost estimates may be provided in master plans or needs assessments
· other municipalities which may have undertaken similar projects
· an architect or consultant specialist who assist in developing the project cost
· service associations
· construction cost manuals (e.g. Mean's)
· appraisers who can provide land value estimates
User departments should also provide information on project timing, future operating
budget impacts, etc.. This is equally valuable as it provides additional information on which
to evaluate and prioritize the project:
E. Financial Evaluation
The financial evaluation and assignment of project funding is to be carried out by the
Finance/Treasury department. This evaluation would include funding alternatives for the
individual works, debt requirements, cash flow implications, reserve fund draws and long
term implications on tax and user rates. As part of this evaluation, summaries of
expenditures by priority ranking and identification of expenditures which potentially
exceed the financial policies established, is also undertaken. Much of this analysis is
discussed further in Chapter 4.
F. Committee/CAO Review
Upon completion of the financial analysis, the committee should review the findings. If the
capital requests are in excess of the municipality's financial capability, adjustments will be
needed in order to ensure that it meets the management and financial policy framework
established earlier in the process. The committee will need to review the individual needs of
each project, its financial impact on the municipahty, and its relative priority within the
context of the total capital works requested.
It should be noted that this prioritization process is handled somewhat differently by
different municipalities:
(1) Some municipalities will seek to develop the capital program, including each project
and what year it is to be undertaken, at this committee level. In these cases,
consensus is reached among user departments and a recommended program is put
forth for council's consideration. Any projects which do not make it into the
recommended budget are then listed as works which are outside of the planning
period of the budget.
15
(2) In other municipalities, council may wish to participate in the evaluation process.
Often workshops are established with council to review the information which
would normally be part of the review undertaken by the capital budget committee.
How this process is undertaken is, to some extent, based upon the council operates. In the
early stages of developing capital budgets, council may wish to be involved at greater
depth until the process is well established. During this time, management and financial
policies can be evaluated and fine tuned to a point where council members are comfortable
with establishing the guidelines without participating in the detailed prioritization process.
However, how the process is undertaken within individual municipalities is not as
important as obtaining consensus both at the staff level and at the political level.
G. Council Review, Input and Approval of Capital Program
As noted above, the process of involving council may occur earlier in the process; however,
most medium to large municipalities formally present a staff recommended capital
program to council. A report needs to be prepared which communicates the following:
· approach to identifying and prioritizing projects
· summary of works in progress and the financial commitments made to date
· detailed listing of recommended capital programs
· summary of capital spending by service
· summary of capital spending by priority ranking
· summary of funding sources
· summary of debt amounts anticipated
· long term impact on tax and user rates
· listing of works which did not get included in the capital program
In presenting this information, each department often presents their individual works
programs. This allows council to discuss specifics of individual projects. The capital
program may be adjusted during this process and, ~f so, the evaluation schedules should be
updated and provided to council for final approval. Often the capital budget is approved in
principle until the operating budget process is complete. Both budgets are then formally
adopted at the same time. It is noted that the current year's projects represent the works
which will proceed; whereas, the year two and later projects represent a forecast and will be
considered for actual approval to proceed in subsequent years.
16
H. Implementation and Monitoring
Upon completion of the capital budget, individual departments may proceed with the
current year's approved works. These may include undertaking the design of the project,
the purchase of land, initiating the tenders, etc. It should be noted that municipalities
authorize and monitor ongoing projects somewhat differently. Some municipalities give
staff the latitude to initiate and undertake the work once it is approved by council, as long
as the project remains within the approved budget. Others provide for a staged approval
process (e.g. initiate the design component, then land acquisition, then tender) which
requires staff to report to council at key stages in the process. Either approach is acceptable;
however, if the municipality has a large number of projects, the latter approach may be
unnecessarily cumbersome to council.
To avoid using a staged approach, one method that may be used to reduce the need for
review of individual projects is to implement status reporting to council by way of a
quarterly report. This report would include "budget to actual" spending information, status
of project timing, status of revenue collected or appropriated to the project, etc. Should any
project budget need to be changed as a result of the estimate being too low for the project,
council should be apprised of the need for a budget adjustment. In doing so, the source of
the additional financing must also be approved to ensure that funding shortfalls do not
occur. This may mean that additional reserve transfers may be needed, additional debt
may need to be issued, or other projects may have to be delayed and revenue sources
reallocated between projects. In all cases, this information must be presented to council for
approval.
Similarly, once a project receives approval, shaft should proceed to finalize external sources
of funding. If grants, subsidies, or contributions from other external sources such as fund
raising are required, the responsibility for following up on receipt of the revenue should be
dearly assigned. Should it become apparent that an identified source of funding will not be
attainable, reporting back to council will again be required. Council may, on occasion,
approve certain works contingent upon being successful in obtaining external funding.
Should those sources not materialize, council may need to delay or discontinue.the project.
17
FIGURE 2-1
AN OVERVIEW OF THE CAPITAL BUDGETING PROCESS
ACTION ACTIVITY
A. Establish Administrative · Establish a Committee consisting of
Structure CAO/Administrator, Department
~ Heads, Key Line Staff and Council
members
· Establish key dates and completion
targets with Committee
· Should coincide with operating budget
B. Establish Timelines/Policies
process and be approved by Council
~ Establish management policies, financial
policies and priority rankin~ parameters
Develop forms for collecting
information
~ ] · Review status, timing and budgets of
C. Review Work in Progress works approved and under construction
Projects and New Capital · Consider inventory of existing
Needs infrastructure and assets (do they
~ require replacemenO
· Identify new capital works
D. Complete Capital Information · Identify costs, timing, need, future
Forms operating impacts, etc.
· Alternative capital funding, debt
capacity, impact on operating budget,
E. Financial Evaluation
priority ranking, etc.
~ · Evaluate affordability, priority ranking
and provide summary evaluation to
Committee
18
~ ACTION ACTIVITY
· Evaluate program relative to financial/
management policies and ranking
F. Committee/CAO Review
criteria
~ ° Fine tune program and obtain consensus
· Prepare report and recommendations to
Council
, G. Council Review Input and
Approve Capital Program · Presentation to Council for discussion
~ and consideration
· Initiate projects
H. Implementation and · Ongoing review of actual spending to
Monitoring budget, project timing, etc.
· Pursue financing
19
2.2 POLICIES TO GUIDE THE PROCESS
A fundamental part of the capital budgeting process will be to establish policies to guide
the capital budgeting process or to establish a financial framework within which the budget
will be developed. Management policies are often developed to guide the ongoing capital
budgeting process, whether it pertains to budget development or the ongoing work in
progress. Financial policies establish the allocation of financial resources and limit the
capital budget spending program to levels affordable to the municipality.
Development of policies are often specific to the individual municipalities and may differ
signfficantly from one municipality to the next. Financial polities will often reflect the
financial health or the financial management perspectives of the municipality, whereas
management policies will reflect the management practices of council or senior staff. These
policies should be discussed at both the senior staff levels and at council level to ensure
consensus and conformity to those policies. Deviation from these policies could cause
financial problems for the munidpality.
A sample of management and financial polities employed by various Ontario
municipalities is provided in Figure 2-2. These policies arC provided as examples only and
represent practices" or as policies by Ministry of
are
not
intended
to
"best
endorsed
the
Municipal Affairs and Housing.
20
SAMPLE POLICY
POLICY OBJECTIVE
FIGURE 2-2 SAMPLE OF MANAGEMENT AND FINANCIAL
POLICIES MANAGEMENT POLICIES
"No capital project may be considered Limits projects being presented on an ad hoc
by Council which has not been basis to council
identified in the Capital Budget"
"Projects which are initiated as part of Ensures that projects initiated in whole or part
a senior government initiative will not by senior governments are not undertaken
commence until funding is secured" until specific funding is obtained
"No growth-related works will be Similar to above, ensures land owner funding
undertaken without securing financing is in place before project is initiated
from benefiting landowners"
"No Ensures that Council approves any additional
budget overruns are to be
expensed until Council is informed expenditures not approved
and funding is allocated to project"
"Status reporting on capital works in Ensures ongoing status reporting is provided to
project will be provided to Council on Council
a quarterly basis"
Ensures that the project undergoes a re-
"No project expenditures within three evaluation if the project has not proceeded in a
years of project approval will require timely fashion Ensures that project is still high
that the project be rebudgeted and priority when compared against other projects
approved by Council once again" competing for funding
"x% of the capital expenditures will be Establishes the major priority for the spending
set aside for health and safety matters of capital dollars
and replacement of existing
infrastructure"
21
SAMPLE POLICY
POLICY OBJECTIVE
FINANCIAL POLICIES
Seeks to limit the amount of debt issued by
"The annual debt charges of the municipality - limits may be set below
municipality shall not exceed x% of provincial guidelines to preserve some
annual total own revenues" flexibility for emergency situations - policy
'~- may also limit the debt of individual programs
Seeks to establish an annual amount within the
operating budget to be used exclusively for
"Annual contributions for all capital capital requirements. This policy could also be
purposes from the operaling budget modified to establish a range of annual capital
shall be x% of total operating contributions by establishing minimum and
revenues" maximum amounts. This policy provides an
amount of available financing within which
long term capital requirements may be
prioritized.
"Any annual surplus in the operating Seeks to build up reserves for capital
purposes
fund shall be transferred to the by setting aside one ffme surpluses for funding
unaLlocated capital reserve" future capital works.
"Future operating expenditures Seeks to allow future capital related operating
allocated to the capital program for expenditures to grow with new assessment
debt, contributions to capital and new growth.
operating expenditures arising from
the capital program shall be limited to
the growth in tax revenue associated
with new assessment growth"
22
3. CAPITAL FINANCING ALTERNATIVES
3.1 SUMMARY OF CAPITAL FINANCING ALTERNATIVES
Sources of capital funding can be categorized into three main groups: internal sources,
external sources, and debt or lease financing. Internal financing sources include to transfers
from other municipal funds (i.e. operating or reserves) or sales of existing assets. External
sources of financing include other government subsidies and grants (both federal and
provincial), ftmdraising or donations, third party contributions under public/private
partnership arrangements, etc. The.._third source, debt or lease financing, includes external
borrowing and other long term repayment obligations.
Table 3-1 provides a summary of the various internal/extemal funding sources and
provides an overview of the impacts of these financing sources on the operating and
reserve funds along with an identification of who is affected by the use of these financing
sources. This chapter will focus on internal and external financing while Chapter 5 will
explain processes related to debenture/lease financing.
3.2 INTERNAL FINANCING
Internal financing is the transfers of ftmds from the current year operating budgets or
existing reserves to assist in financing capital works. Some municipalities rely heavily on
these sources as a way of eliminating or reducing their reliance on debt issuance. Successful
use of internal funding, however, requires longer term planning and the use of policies to
manage these resources in order to reduce fluctuations in budgeted financial requirements
from year to year.
Many municipalities provide for a portion of their total annual operating budget to be set
aside each year exclusively for capital expenditures. These allocations are normally referred
to as "transfers to capital" or "current contributions to capital." These allocations are either
provided as a percentage of the total operaffng budget, an annual dollar allotment or
managed over a longer term by planning future tax rates. These allotments, which are set
aside annually, may not be immediately required from one year to the next. In these
situations, the amounts not required are transferred to a reserve for future capital use. The
main focus of this pre-planning is to smooth the impact on the operating budget over a
period of years, so that erratic tax rate movements are not experienced. More details on this
long term planning are provided in Chapter 6.
23
TABLE 3-1 CAPITAL FINANCING SOURCES
Financing Sources Operating Budget/Reserve Impact Who is Affected
Operating Budget Transfers "In year" provisions within Current year taxpayer, users
operating budget
Reserves - General Past conl~ibutions from operating Past taxpayer, users
budgets, operating surplus, sale of
Reserves - Asset Replacement Generally, past policies to set aside Past taxpayer/user rates
money for future equipment/asset
replacement
Reserves - Development Charges Money collected under Development Developers/builders/landowners
Charges Act as growth occurs
Reserves - Parkland Collected under Parkland Developers
Dedica~an provisions of Planning
Act
Financing Sources Operating Budget/Reserve Impact Who is Affected
Grants/Subsidies nil Provincial/Federal
Fundraising nil Community groups, residents
Public/Private Partnerships or Depending on agreement, may External service providers, perhaps
Public/Public Partnerships have future operating budget future taxpayers
impacts
Debenture Debt or other long-term Future operating budget impacts Future taxpayers, users
agreements for repayment of debt
Provindal Acts (e.g. Local May have a component of the costs Benefiting landowners
Improvement Act, Drainage Act, which are non-recoverable from
~lunidpal Act) landowners, would impact on "in
year" operaimg budget or future
debt
24
From time to time, municipalities may own assets (e.g. surplus real estate or buildings)
which they no longer require. The sale of these assets can generate a funding source for
new capital projects. Sale and lease-back arrangements may be used to monetize existing
assets, with significant revenue streams, to generate funding for capital needs.
Reserves and reserve bands are accumulated net reserves which are set aside for future
municipal expenditures. Reserves are an appropriation from net revenue set aside by
council at their own discretion to be available to meet a future need. The future need does
not have to be specific, and the reserve does not have to be segregated from other municipal
assets. Reserve funds may be either obligatory or discretionary. An obligatory reserve fund
is created whenever a statute requires that monies received be segregated from the general
revenues of the municipality. Examples are revenues received under certain provisions of
the Development Charges Act, Planning Act, or Municipal Act. Council may establish
discretionary reserve funds to earmark revenue for particular purposes under the authority
of Section 163 of the Municipal Act for any future expenditure for which it may spend
money. A detailed review of reserves and reserve funds has been provided by the Ministry
of Municipal Affairs and Housing and is included in Appendix D.
A summary of different capital reserves often used by municipalities is provided below:
Capital Reserves
Lifecycle/Asset Replacement Reserves - This type of reserve provides for the future
replacement of capital assets such as buildings, facilities, vehicles and equipment.
Normally, sums of money are provided in the operating budget and are transferred
annually to this reserve to provide for the future replacement of the assets. Although
municipalities have not historically been required to depreciate assets in their accounting
practices, future changes in provincial reporting may eventually require this. Hence,
municipalities will evolve their financial planning and reporting over time to reflect a more
accurate picture of the depreciation or "using up" of their physical assets.
Future Acquisitions - Some municipalities establish special reserves for the future
acquisition of large projects. Annually, monies may be set aside in the operating budget to
contribute to this fund or contributions may also be made from the sale of other assets or
annual operating surplus transferred to these accounts.
25
Unallocated Capital -Also referred to as a contingency reserve, this account provides for
money to be set aside for either emergency purposes or to fund unexpected overrtms in
capital project expenditures.
3.3 EXTERNAL FINANCING
Historically, municipal authority to raise revenues to finance capital services has been
relatively restrictive. Municipalities"have had some legislative powers to impose special
rates and fees, and traditionally have had provincially and federally funded grant programs
available to them. In very recent years, with financial and service reforms at the provincial
level, grant and subsidy programs have been significantly reduced. Some programs for
capital are still available but these are primarily directed to health and safety issues. From
time to time, additional programs may become available; however, the overall direction of
senior levels of government at this time is to encourage municipalities to become
increasingly self-reliant on their own financial resources.
Municipalities have had some success in initiating fundraising programs for recreation or
cultural projects which are of community interest. Common examples include construction
of new arenas, community centres, pools, parks, libraries, etc. However, some
municipalities have experienced difficulties in reaching their fundraising targets apparently
due to a market saturation in fundraising events. Many clubs and social program providers
have turned to annual funding drives to cover basic operai~ng expenses in the face of
declining availability of government sourced grant funding for this purpose. As well, in
recent times, hospitals, schools and college/universities have initiated their own
campaigns, thus limiting potential money available from the general public. This funding
source should not be ignored; however, realistic objectives should be established before
initiating a project.
Over the past few years, a number of legislative reforms have been introduced which have
expanded municipal powers. For example, Bill 40 introduced in 1993 provides for
public/private sector funding involvement. Others have restricted municipal powers: for
example Bill 98 made amendments to the Development Charges Act that eliminated the
eligibility of certain services.
26
4. DEBT MANAGEMENT
4.1 OVERVIEW
Debt management may be defined as the process of providing for the payment of interest
and principal payments on existing debt, and the planning for incurrence of new debt at a
level which will optimize borrowing costs and not impair the financial position of the
municipality.
At the municipal level, debt manage.__ment is the blending of the capital and current budgets.
More specifically, it is the projection of the capital budget's impact on the operating budget
in future years.
The debt position of a municipality is of interest to the Provincial government and
potential purchasers of the municipality's debentures. The Ministry of Municipal Affairs
and Housing regulates that a municipality should not commit more than 25% of total own
purpose revenue to service debt and other long term obligations without obtaining prior
OMB approval. Annually, municipalities submit data on their long-term liabilities and debt
charges to the Province (via the annual Financial Information Returns). This information
forms the basis for the calculation of an upper limit of future debt to be incurred.
Investors look to credit rating agencies for an assessment of a municipality's credit
worthiness. A number of key indicators are used to assess a municipality's ability to service
debt. Some of the most commonly used indicators are shown below (the reader should
consult the criteria provided by the credit rating agencies directly for more detail):
i) Debt per capita
ii) Debt charges per capita
iii) Debt charges as a percentage of revenue
iv) Debt charges as a percentage of the municipal levy
v) Debt to assessment ratio
vi) Debt charges to tax rate ratio
vii) Annual increase in debt in relation to: inflation, population, assessment growth,
operating revenue
27
These indicators are reviewed on their own merit, and in relation to other municipalities, to
derive the municipality's credit worthiness (the potential risk of the municipality not
meeting debt payment obligations). Determination of credit worthiness is reflected by the
interest rate at which the investor is willing to lend his money. The ability to repay debt
and a sound financial position lowers the overall risk to an investor, and therefore, lowers
the interest rate required by the investor. In theory, the ultimate debt capacity of a
municipality is the point at which no investor will make money available to the
municipality at any rate of interest.
4.2 GUIDELINES -ANNUAL REPAYMENT LIMIT CALCULATION
The Ministry of Munidpal Affairs and Housing regulates the level of debt incurred by
Ontario municipalities. This task was formerly undertaken by the Ontario Municipal Board
but, as of 1993, has been the responsibility of the Ministry. The Ministry regulates the debt
by regulation through its powers established in the Municipal Act.
Detailed calculations, which the Ministry undertakes annually, are based upon the
Financial Information Returns (FIR's) submitted by each municipality. The reference to the
financial information return is denoted on the schedule as "PL 03 29 04" which refers to the
page number, the line and column from the FIR.
The calculations generally provide the following:
A. Gross Debt Charges Paid by Municipality
B. ADD: - Provincial Sewer and Water Related Agreements (OCWA)
Payments Toward Long Term Commitments/Liabilities
C. Add: -Payments Related to Debt Issued on BehaLf of Related Utility Commissions
Payments on Behalf of Landowners (Tile Drainage, Downtown
Revitalization, Shoreline Debt)
D. Net Debt Charges [(A + B) - C]
E. Total Revenue Fund Revenues
28
F. Add -Payments made by landowners related to Tile Drainage, Downtown
Revitalization, Shoreline debt -Grants and Subsidies from Senior Levels of
Government -Revenues from Local Joint Boards -Contributions from the Capital
Fund, Reserves and Reserve Funds
G. Net Revenue Fund Revenues (E - F)
From the above, the municipality's .existing debt levels are calculated by dividing D by G
(Net Debt charges divided by Net Revenues). This percentage is the existing debt used to
date. The remaining debt limit (how much additional debt charges can be incurred and
remain within the guideline) is calculated as follows:
G X 25% - D = remaining debt limit
The amount of debt and other long-term financial obligations which can be entered into and
allow the municipality to remain within its debt limit, will vary depending upon the
interest rate and the term of the debt issued and the terms and conditions of the long-term
financial obligations. Generally, the larger the annual payments respecting debt or other
financial obligations ( for example high interest rate and shorter) the less the debt or other
financial obligations which can be entered into while remaining within the debt limit. The
debt limit is established on the basis of the annual debt repayment amount, not on the
principal amount of the debt issued or total value of long-term financial obligations entered
into. At the bottom of the third page of Schedule 5-1, the Ministry provides an example
calculation of how much additional debt may be issued based upon assumptions of debt
issued at 10.5% interest, over 5, 10, 15 and 20 year terms.
The annual debt repayment limit calculation is sent to municipalities by the Ministry at the
beginning of every year. However, these calculations are based on data from the latest FIR
submitted which is dated (for example for 1999, the calculations were based on 1997 FIR
information). Although the Ministry reviews and regulates the debt levels of a
municipality, it is still the responsibility of the municipality to calculate whether it is within
its limit. The municipal Treasurer is required to update the limit prior to Council approval
of a capital project which requires long term borrowing. Debt capacity calculations have
been provided as part of the analysis schedules provided in Chapter 4 and debt monitoring
should be undertaken annually as part of the capital budgeting process.
29
4.3 DEBT MANAGEMENT - LONG-TERM DEBT VS. PAY-AS-YOU-GO
After the second world war, municipalities sought to expand their infrastructure and used
debt financing as the vehicle to finance these expenditures. Until the 1960's, much of the
capital infrastructure constructed depended on debt financing and the cost of borrowing
was relatively inexpensive. During the 1970's, there was a general movement in the
municipal sector to reduce the level of dependency on long-term debt financing. This
movement was reinforced during t. lxe latter part of the decade when interest rates rose to all
time high levels and were sustained for several years. Today, most major municipalities in
Canada practise a combination of long-term financing and pay-as-you-go policies.
There are mixed views as to whether long-term debt financing is a superior method of
capital financing than pay-as-you-go. There are advantages and disadvantages to both
approaches, municipalities need to consider the merits of both methods to guide their
future financing in accordance with a long term plan. In doing so, municipalities should
establish parameters to guide the financing of their capital budgets, and develop policies to
implement these guidelines.
Some of the major benefits derived from long-term debt financing are as follows:
1. For assets with a longer life expectancy, the payments are spread over a longer term.
2. Debenture-financing smoothes the impact on the operating budget.
3. It allows more projects to be constructed simultaneously during a period of rapidly
expanding growth and assessment.
4. During periods of increasing inflation, it may reduce the real cost of the project.
5. It is the best financial tool for handling emergency situations.
Some of the positive attributes of a pay-as-you-go policy are:
Long-term debt includes: long-term borrowing, issuance of debentures, capital leases, and other forms of
long-term financial obligations.
30
1. The financial consequences of capital spending are faced as spending decisions are
being made.
2. Paying for capital costs up-front encourages a realistic level of spending.
3. Greater Operating Budget flexibility is preserved for the future.
4. Increased financial strength.
5. Future generations inherit paid-up facilities.
6. Interest payments, fiscal agen._t_fees, and debenture issuance costs avoided.
7. During periods of declining interest rates, debt financing increases the real cost of
the project.
Once debenturing forms a significant portion of a municipality's capital financing, the
potential financial impact on the Operating Budget in the early years of moving to a pay-as-
you-go policy can be a major stumbling block to its implementation. Pay-as-you-go may be
implemented by increasing the Operating Budget in one year to a level sufficient to pay all
capital expenditures for that year. However, this approach is likely to have a very
significant impact on tax rates in its first year.
Alternatively, pay-as-you-go may be achieved by a gradual phasing out of debenture
financing in the capital spending program. This may be implemented by using a three
phase plan as described below as one possible approach:
· Phase I allows for a gradual increase in the contribution to capital from the operating
budget and for the gradual establishment of reserve funds. During this phase, the
annual debenture requirements (and resulting annual debt charges) are on the
decline.
· Phase II can commence once the reserves have increased to a sustainable level.
Annual capital expenditures, net of the Operating Budget contribu~ons, can now be
met from reserve contributions without the need for external debentures. This phase
introduces internal debt financing, u~lizing a revolving reserve fund.. Annual
contributions to the reserves are similar to annual repayment of external debt, and
can be achieved through planned multi-year operating budgets.
31
· Phase III commences once the amount budgeted for repayment to the reserves equals or
exceeds the actual net capital budget requirement. At this point, the current contribution
to capital plus the internal debt repayment equal the net internal financing requirement of
the capital budget. Internal debt repayment can be discontinued as the total net capital
budget can be accommodated through direct contributions from the operating budget.
The decision to use debt (including capital leases or other forms of long-term financial
obligations) or pay-as-you-go financing is a local decision of the municipality. The policy
selected may vary from program to program (e.g. use of pay-as-you-go for infrastructure
replacement projects; use of debt financing for growth projects or cost saving projects).
Either method may be beneficial to individual municipalities in certain circumstances;
however, the long term financial impact of the approach taken needs to be evaluated by the
municipality prior to making these decisions.
In general, in a low debt, low interest rate, and low inflation environment, debenture
financing or other forms of long-term financial arrangements may be attractive mechanisms
to use to finance capital projects for which there is a pressing need.
2004 CAPITAL PROJECT BUDGET
TABLE OF CONTENTS
Paqe
Report F-2004-28 - 2004 Capital Projects Budget
2004 Capital Projects Budget Summary Statement ......................... 1
2004 Capital Projects Budget Funding Sources Chart
2004 Capital Projects Budget - Project Costs by Responsibility Area
2004 Capital Projects Budget Detail Statements:
General Government ............................................ 4
Fire Services .................................................. 6
Municipal Works ............................................... 8
Parking Lot Maintenance Services ................................ 11
Fleet and Facilities Maintenance Services ......................... 12
Niagara Falls Transit ........................................... 13
Parks, Recreation and Culture ................................... 14
Cemeteries ................................................... 17
Niagara Falls Library ........................................... 18
Corporate Services Department F-2004-28
~1~~~~Finance DivisiOnThe Cily of Kenneth E. I~urden
ara Falls' 4310 Queen Street Director
}~g P.O. Box 1023
~ ~hada Niagara Fails, ON L2E 6X5
web site: www.city.niagarafalls.on.ca
Tel.: (905) 356-7521
Fax: (905) 356-2016
E-maih kburden~city.niagarafalls.on.ca
April 19, 2004
His Worship Mayor Ted Salci
and Members of the Municipal Council
City of Niagara Falls, Ontario ~-
Members:
Re: F-2004-28 - 2004 Capital Projects Budget
RECOMMENDATION:
1. That City Council approve the 2004 Capital Projects Budget.
2. That City Council authorize, in principle, the use of debenture funding for the 2004 capital
projects.
BACKGROUND:
The purpose of the 2004 Capital Projects Budget is to provide descriptive details of the capital
expenditures for the current budget year. It also indicates the funding requirements and the sources
of funds from the General Purposes, Municipal Utility, other funding sources and new borrowing.
Capital Contribution and Debt Management:
For a guidelines overview of the 2004 Capital Projects Budget, Schedule "A" provides the following:
+ Guidelines from the Capital Financing and Debt Management Policy
+ Comparison of Guidelines to the Capital Projects Budget
The criteria for calculating the guidelines are indicated in the upper section of the schedule and a
comparison to the Capital Projects Budget is reported in the lower section.
City's Debt Management
The City's debt management guideline states that the debt repayment limit is 15% of the City's own
source revenues. Given the current level of own source revenues, the guideline would allow $14.2
million in annual debt servicing.
Working Together to Serve Our Community
Clerks Finance · Human Resources · Information Systems Legal · Planning & Development
· April 19, 20{)4 - 2 - F-2004-28
During 2004, the City ~vill be committed to the payment of $1.4 million for debt repayment. This
amount, when compared to the Debt Repayment Limit of $14.2 million, indicates that the City has
a considerable capacity to assume additional debt financing. Funding sources for the 2004 Capital
Projects Budget will require debt financing. The comparison shows that the City will not exceed the
debt repayment limit but will increase the debt repayment to $2.4 million in 2005.
Implications o[taiting on Additional Debt
Debt repayment is a fixed expense in the City's general operations. A cormmitment to pay debt is
a charge upon the City to collect sufficient amounts from rateable property to pay the principal and
interest due. An increase in debt repayment must be matched by an increase in revenues. Given that
revenues must match this increasing expense and also given that such an expense is to be levied
against rateable property, the additional debt may result in a tax levy increase.
City's Capital Contribution
The General Purposes contribution to the Capital Projects Budget does exceed the maximum
guideline. The contribution includes the use of increased taxation from the new Casino to fund
specific capital projects. Through the use of short-term financing and the dedication of the increased
revenue, both the Niagara Falls Community Centre and the railway corridor acquisition can be fully
funded by 2009·
2004 Capital Proiects Detail
In the following pages, major City services are shown separately, showing their respective capital
projects for 2004, and providing description detail for each project.
Recommended by: Respectfully submitted:
~ireE~tBorU;dfeFninance John M~clCmD.~i. strative Offic~
Approved by:
T. Ravenda
Executive Director of Corporate Services
Schedule 'A'
CITY OF NIAGARA FALLS
AND DEBT MANAGEMENT
CAPITAL
CONTRIBUTION
2004 CAPITAL PROJECTS BUDGET
2005-2008 CAPITAL PROJECTS FORECAST
( '000 of dollars )
GUIDELINES 2004 2005 2006 2007 2008
DEBT REPAYMENT LIMIT
Revenue Fund Revenues $94,774 $96,670 $98;603 $100,575 $102,587
15% Maximum Limit of Revenues ~- 14,216 14,501 14,790 15,086 15,388
GENERAL PURPOSES CONTRIBUTION
TO CAPITAL PROJECTS BUDGET
Previous Year's Supplemental Taxes 570 625 638 650 663
50% Maximum Contribution of Supplemental Taxe~ 285 313 319 325 332
COMPARISON OF GUIDELINES TO THE 2004 2005 2006 2007 2008
:~.~'~-'~/ 2004-2008 CAPITAL PROJECTS BUDGET
)EBT REPAYMENT
Existing Debt Repayment $1,475 $1,475 $2,223 $3,056 $3,553
Add: New Debt Repayment 919 938 498 409
Total Debt Repayment 1,475 2,394 3,161 3,554 3,962
DebtRepaymentLireitpertheGuideline 14,216 14,501 14,790 15,086 15,388
Difference - (under)over the Limit (12,7411 (12,107) (11,62~. (11,532) (11,427',
GENERAL PURPOSES CONTRIBUTION
TO CAPITAL PROJECTS BUDGET
Current Year's Contribution $6,396 $6,596 $5,848 $7,219 $6,518
Use of New Casino P.I.L. Contribution 2,679 4,589 4,589 4,589 4,589
Subtotal General Purposes Contribution 9,075 11,185 10,437 11,808 11,107
Subtract: Previous Year's Contribution 6,226 9,075 11,185 10,437 11,808
Difference - increase (decrease) in Contribution 2,849 2,110 (748 1,371 (701
Maximum Contribution per the Gu~letine 285 313 319 325 332
Difference - (under)over the Maximum 2,564 1,798 (1,067 1,046 (1,033
CITY OF NIAGARA FALLS
2004 Capital Projects Budget
Summary Capital
2004 Capital Projects
Opening Project or General Municipal Other Debenture Closing
Project or Program Fund Program Purposes Utility Funding Funding Fund
Balance Cost Contrib. Contrib. Sources Balance
(surplus)deft( (surplus)deric
General Government 13,255,362 965,735 3,603,400 2,814,722 7,802,975
Fire 172,487 1,445,757 300,000 634,708 700,000 (16,464'
Municipal Works 7,994,906~8,315,790 3,588,449 6,167,123 19,605,167 5,200;000 1,749,957
Parking 0 430,000 430,000 0
Fleet and Facilities 96,338 1,783,000 1,185,000 694,338 0
Transit 33,321 ! 945,000 678,321 300,000 0
Parks, Recreation and Culture 2,993,735 17,041,342 325,000 6,403,228 324,988 12,981,861
~ '-)~meteries__ (20,621) 99,621 24,000 55,000 0
Libraries (43,961) 358,961 50,000 135,000 130,000 0
0
0
TOTALS 24,481,567 51~385,206 9~075,849 6,167,123 31~450,484 6,654,988 122,518,329
City of Niagara Falls
2004 Capital Projects Budget
· Funding Sources
Debenture funding General purposes
12% contribution
17%
Municipal utility
contribution
12%
Other funding sources
59%
City of Niagara Falls
2004 Capital Projects Budget
Project Costs by Responsibility Area
Fire
Libraries 3%
1%
Parks, recreation,
culture, and cemeteries
33%
Vlunicipal works
55%
Transit
2%
Fleet and facilities
3%
Parking
1%
General government
2%
4
CITY OF NIAGARA FALLS
04 Capital Projects Budget
neral Government
2004 Capital Proiects
Opening Project or General Other Debenture Closing
Project or Program Fund Program Purposes Funding Funding Fund
Balance Cost Contrib, Sources Balance
(surplus)defic (surplus)defic
Project or Programs in Progress
Montrose Business Park 463,715 0 0 463,715 RF 0: 0
Land Sales and Purchases 144,933 490,000 0 634,933 CR 0 0
Railway Co~'ddor Acquisition 11,406,3~ 0 3,603,400 0 0 7,802,975
New Financial Software and Equipment 39,380 205,627 0 245,007 CH 0 0
Development Charges Update Study 6,092 45,108 0 51,200 DC 0 0
Property Reclamation - Montrose/McLeod 1,194,867 0 0 1,194,867 RF 0 0
· New Project or Programs
Information Systems
E- Commerce System 0 150,000 150,000 CH 0 0
yance/Information Systems
-~:T¢fice/computer equipment 0 75,000 75,000 CH 0 0
Niagara Faits Humane Society Capital
Contribution for Facility Repairs 0 0 i 0 0 0
TOTALS 13,255,362 965,735 3,603,400 2,814,722 0 7,802,975
OTHER FUNDING SOURCES
CH - Capital Holding #529 470,007
CR ~ Capital Reserve 634,933
RF - Prbpaid Subdivision Reserve Fun( 1,658,582
DC - Development Charges 51,200
GENERAL GOVERNMENT
PROJECT DESCRIPTION COMMENTS
Land Sales and Purchases Includes the purchase of three Part of the redevelopment of
homes on Dorchester at Dawson Dorchester Road
New Financial Software and The installation and Completion of three-year project
Equipment implementation of Vadim software
modules
Development Charges Update Preparation for the 2004 Study being performed by C.W.
Study Development Charges Bylaw Watson & Associates
E-Commerce System Development of web technology to Project in conjunction with Niagara
allow the payment of bills and Region's Portal initiative
purchases over the internet
Office/Computer Equipment Purchase of updated office Final phase of the City Hall
equipment and computer renovations
equipment in conjunction with the
Finance/iS/HR refurbishment
CiTY OF NIAGARA FALLS
2004 Capital Projects Budget
Fire Services
2004 Capital Proiects
Opening Project or General Other Debenture Closing
Project or Program Fund Program Purposes Funding Funding Fund
Balance Cost Contrib. Sources Balance
(surplus)deftc (surplus)defic
Pre~ect or Programs in Pro<:jress
Rural Property Signage [FS-2002-08] (9,457 17,957 8,500 0
Boat Motors & Marine Eqmt. [FS-2003-04] (8,793 (8,793
Diesel Emissions Filtration S¥s. [FS-2003-06] 155,910 155,910 RF 0
Cdsys Intelliloader [FS-2003-07] 11,155 11,155 (0
UHF Trunked Radio System [FS-2003-05] 288 3,850 (3,562
Fire Station #4 Addition [FS-2003-78] 33,798 33,798 CR 0
Fire Prevention Office Fumitare [FS-2003-09J 9,195 9,195 0
S.C.B.A. Equipment Replacement (13,308 (13,308
Replacement Defibrillators [FS-2003-11] A'-31,160 31,160
Thermal Imaging Camera [FS-2003-15] (5,892 (5,892
Supp, Training, Rescue Eqmt. [FS-2003-18&19] (16,070 (16,070
Radio & Telephone Recorder [FS-2004-01] 0 41,300 41,300 0
Flashover Training Unit [FS-2003-17] (15,500 15,500 0
New Project or Programs
Training Tower Upgrade, Station #1 0 20,000 20,000 CF 0
Laser Fiche, Fire Administration 0 10,000 10,000 CF 0
Name Change Insigeia 0 15,000 15,000 Cl- 0
Outboard Motor Raplacement/Boat upgrades 25,000 25,000 0
Training Tower - outside stairs 15,000 15,000 0
Stati0n 6 Replacement 150,000 150,000 CI; 0
0
Defibrillator Replacement, Fire Stations 35,000 35,000 0
Air Compressor Replacement (with tanks) 25,000 25,000 0
Additional SCBA Cylinders 18,000 18,000 0J
thermal Imaging Camera 25,000 25,000 01
iFire Command Vehicte Replacement 45,000 48,000 0
:ire Station #1 Renovations & Addition 950,000 250,000 DE 700,000 0,
=mergency Operations Centre Equipment 35,000 35,000 0:
Security and Card Access S~stem 0
-{ydraulic Ladder Rack (Pumper 4) 0
Fire Prevention Vehicle 0
Emergency Preparedness Communications 0
Interoperability Radio Upgrades 0
Fire Rescue #2 Replacement & Equipment 0
Fire Aerial #4 Replacement 0
Equipment for Aerial 0
Pumper replacement- 1980 International 0
Equipment for Pumper 0
New station Lund),'s Lane/Kalar Rd. 0
Pumper replacement - 1986 International 0
Equipment for Pumper 0
Aerial Truck 0
Equipment for Aerial Track 0
Pumper repacement- 1991 Superior 0
Equipment for Pumper 0
New station Fallsview Area 0
New Pumper/Aerial - Katar Rd Station 0
Equipment for Pumper/Aerial 0
New Pumper- Fallsview 0
Equipment for Pumper 0
TOTALS 172,487 1,445,757 300,000 634,708 700,000 (16,463
OTHER FUNDING SOURCES:
DC - Development Charges 250,000
CR - Capital Reserves 183,798
45,000
PC -Private Cont~ - Stn.#6 Vo~J:.F.
I RF - Reserve Funds - Cap.Oper. Restruc.
I RF - Reserve Fu~d -s Ppd. Subdiv. Projects 155,910
FIRE SERVICES
PROJECT DESCRIPTION COMMENTS
Rural Property Signage Installation of street signs for Completion of the two-year project
emergency purposes
Radio & Telephone Recorder Replacement of outdated improves the capacity and
equipment capabili{y of existing equipment
Flashover Training Unit Enhancement of Fire Services In conjunction with other municipal
training*capacity training
Training Tower Upgrade, Station Improvements to existing facility
#t
Laserfiche, Fire Administration Digital recording of fire documents Continuation of using this
: technology throughout the
Corporation
Name Change Insignia Replacement of the existing name
crest and insignia
Outboard Motor Replacement/Boat Replacement of the emergency
upgrades services equipment
Training Tower - Outside Stairs Major repair of existing facility
Station 6 Replacement Replacement and expansion of Architectural preparation and
existing Station 6 building RFP's
Defibrillator Replacement, Fire Replacement and upgrade of
Stations existing emergency fire equipment
Air Compressor Replacement (with Replacement and upgrade of
tanks) existing emergency fire equipment
Additional SCBA Cylinders Replacement and upgrade of
existing emergency fire equipment
Thermal Imaging Camera Replacement and upgrade of Continuation of providing each
existing emergency fire equipment station with a camera
Fire Command Vehicle Replacement of existing fleet The existing vehicle will be used by
Replacement Fire Prevention
Fire Station #1 Renovations & Refurbishment and expansion of To make room for additional
Addition existing facility complement and to set up
emergency command centre
Emergency Operations Centre Purchase of new equipment for In compliance with Fire Marshal's
Equipment emergency operation centre directives for emergency
operations
2004 Capilal Projects Budge{
MUNICIPAL WORKS
PROJECT DESCRIPTION COMMENTS
Rural Drainage Major maintenance on ditching, Continuance of annual program of
culverts and tiling major maintenance
New sidewalk Construction Installation of new sidewalks Continuance of annual sidewall(
program
Montrose Road Reconstruction Reconstruction from Thorold Stone Project in cooperation with Niagara
Road to Highway 420 Region
Stanley Reconst. Dropshaft Storm Storm*separation along Stan]ey Continuation of joint program with
Ext. And Dmpshaft at ValleyWay Avenue Niagara Region and MTO
Roberts St./Hwy. 420 Major improvement to provide Continuance of joint project with
Improvements Gateway Entrance MTO, Niagara Region and Niagara
Parks Commission
Dorchester Rd. EA & Constr. LL to Major reconstruction from Lundy's Phase 1 of four-year program
TSR Lane to Thorold Stone Road
High Rate Treatment & Muddy Run Sewer separation project In conjunction with Niagara Region
Rolling Acres Storm Crossing Storm sewer project
QEW
Metrus/Montrose Business Park Installation of storm sewer Development of the Montrose
Road Business Park
Casino Roads Reconstruction of Murray Street, i Final phase of three-year project in
Fallsview, Dixon and Main Street conjunction with Niagara Region
and OLGC
Oakwood Drive Ext, Reconstruction of underground
water and sewer
Stanley Ave. Underground Main Reconstruction of roads, water and In conjunction with Niagara Region
Street to McLeod Road i sewer from Main Street to McLeod
Road
Montrose Rd. LL to Kinsmen Reconstruction of sidewalks and In conjunction with Niagara Region
(sidewalks, sewem) sewers from Lundy's Lane to
Kinsman Court
Asphalt Overlay and Road Rehabilitation of existing paved Continuance of existing program
Rehabilitation surface roads
Kalar Rd. EA & Construction LL to Reconstruction of roads from Phase 1 of three-year project
Beaverdam Lundy's Lane to Beaverdams
Watermain Replacement Program Replacement of existing Continuing annual program
watermains
Combined Sewer Separation Sewer separation program Continuance of a multi-year
Program program
Drainage Area #11 (Stanley
Avenue
]0
MUNICIPAL WORKS
PROJECT DESCRIPTION COMMENTS
Oakwood Drive Pump Station Upgrade of existing capacity
Chlorine Residual Study and Action Water quality maintenance project
Plan
Drummond Rd. Sewer Relining Refurbishment of existing sewer
lines
Drummond Road EA Rehabilitation of roads, water and Phase 1 of environmental study
sanitaeJ, sewer
Beaverdams Traffic Calming
Allandale Couplet Construction Upgrade of Aliandale to reduce Engineering Study
traffic congestion
St. David's Pump Station Upgrade to existing capacity
NOTL Sanitary Sewer (Stanley Extension of sanitary sewer lines A local improvement project
Ave.)
NW Quadrant Pump Station Extension of sanitary sewer lines Continuance of providing water
and sanitary sewer infrastructure
Valley Way Storm Sewer Ext. Engineering Study
Mewbum Road Spods Park Installation of road access
Life Extension for Structures Major repair and/or replacement of
existing structures
Railway Separation EA and Provide alternate access route for Environmental Assessment Study
Construction emergency and regular traffic
· CiTY ~F NIAGARA FALLS ! !
2004 Capital Projects Budget
Parking Lot Maintenance Services
-,~ Capi Projects
2OO4
Opening Project or General Other Debenture Closing
Project or Program Fund Program Purposes Funding Funding Fund
Balance Cost Contrib. Sources Balance
(surplus)defi¢ (surplus)defic
Parking Lot Reconstruction 0 250,000 250,000 0
Parking Lot Pay and Display Ticket
Dispensers Replacement 0 30,000 30,000 0
On-Street Pay and Display Ticket
Dispensers Replacement 0 150,000 150,000
TOTALS 0 430,000 0 430,000 0 0
FUNDING SOURCES:
430,000
f)
PARKING LOT MAINTENANCE SERVICES
PROJECT DESCRIPTION COMMENTS
Parking Lot Reconstruction Resurfacing of existing parking lots Continuance of ongoing program
parking Lot Pay and Display Ticket Installation of new ticket
Dispensers Replacement dispensers
On-Street Pay and Display Ticket Installation of new ticket
Dispensers Replacement dispensers
· CITY'OF NIAGARA FALLS
2004 Capital Projects Budget
Fleet and Facilities Maintenance Services
~ 2004
Opening Project or General Other Closing
Project or Program Fund Program Purposes Funding Funding Fund
Balance Cost Contrib. Sources Balance
(surplus)defic
Vehicle Replacement 96,338 950,000 950,000 96,338 0
City Hall Roof Replacement 200,000 50,000 150,000' 0
City Hall Elevator Repairs 90,000 90,000 0
City Hall Clerks Department Renovation 30,000 30,000 0
City Hall Council Chambers Renovatio~ 50,000 0
City Hall Finance/Info. Sys. Renovation 368,000 368,000 0
Community Resource Ctr. Roof Replacement 25,000 25,000 0
Service Ctr. Tin Roof Replacement 70,000 40,000 30,000 0
TOTALS 0
OTHER FUNDING SOURCES:
SPR - Special Purpose Reserves #2 230,000
~.SPR.- Spec a Purpose Reserves #139 96,338
~ - Capital Holding #529 368,000
FLEET AND FACILITIES MAINTENANCE SERVICES
PROJECT DESCRIPTION COMMENTS
Vehicle Replacement Replacement and additions to Continuance of ten-year life cycle
existing fleet for City fleet
City Hall Major Repairs and Repair of roof, elevator and Final phase of City Hall
Refurbishment refurbishment of Clerk's, Council refurbishment
Chambers, Finance and
Information Systems
Community Resource Centre Roof replacement on the CORE
Building
Service Centre Roof replacement on the Service
Centre
CIT'r:OF NIAGARA FALLS
2004 Capital Projects Budget
Niagara Falls Transit
Opening Project or General Other Closing
Project or Program Fund Program Purposes Funding Funding Fund
Balance Cost Contrib. Sources Balance
(surplus)defi¢
or Programs in Progress
insit Coaches 2003 (two coaches) 33,32t 33,321 ~
Transit Coaches 2004 (two coaches) pO 945,000 71,000 300,000 574,000
339,000 (339 000
235,000 (235,000
Transit Coaches 2005 (two coaches) 0 0
Transit Coaches 2006 (two coaches) 0 0
tOTALS 0 0
)tHEiR FUNDING SOURCES:
~I~c - Development Charges 104,321
; ~Cap.Oper. RF 235,000
lPG - Provincial Grant 339,000
NIAGARA FALLS TRANSIT
PROJECT DESCRIPTION COMMENTS ,
Replacement of bus vehicles Continuance of five-year program
CITY OF NIAGARA FALLS
2004 Ca~t[al Projects Budget ] 4
Parks. Recreation & Culture
2004 Capital Proiects
Opening Project or General Other Debenture C~ostng
Project or Program Fund Prcgram Purposes Funding Funding Fund
Balance Cost Contrib Sources Balance
New Project or pro,rams
~ -) Millennium Trail Phase 4
PARKS, RECREATION AND CULTURE
PROJECT DESCRIPTION COMMENTS
Skateboard Facility Building of new skateboard park May's Youth Advisory Committee
near Community Centre initiative
Firemen's Park Rehabilitation of existing facilities
COmmunity Centre Building new indoor swimming In conjunction with Province of
~ pool/library/resource centre Ontario, YMCA, Niagara Falls
Library Board. To be completed in
2005
Kalar Road Spods Complex Buildir~ outdoor soccer facilities In conjunction with Niagara Falls
Girls' Soccer Association
: Chippawa/Willoughby Memorial Building neW ball diamonds and Phase 1 of a multi-year project
Community Park park amenities
Playground Equipment Replacement and addition of park ContinuanCe of existing program
playground amenities
Welcome Sign Irrigation (Water Extension of water line to irrigate
line) QEW signage at Mount Road
Mitchell Line Trail Phase 1 Building of recreation trail along the Phase 1 of a multi~year program
Mitchell Line
Centennial Wall Relief artwork depicting War of City of Niagara Falls Centennial
1812 Project
Chippawa Arena Ice Resurfacer Purchase of new Zamboni
Arena Feasibility Study Study of arena ice surfaces needs
Heritage Master Plan Study of all heritage sites and
services
Additional Ice Surfaces Study Of arena ice surfaces needs
NF Memorial Arena Roof Repair Major repair to roof
Beautification Projects Upgrading of existing beautification New initiative from the
program Environmental and Greening
Committee
Millennium Trail Phase 2 Construction of recreational trail Phase 2 of a multi-year program
Garner Neighb0urhood Park and Construction of park amenities
: Trail
Cakes Park Ball Diamond Upgrade of bail diamond surface In conjunction with the Great
Renovation Niagara BaSeball Association
C.B. Wright Neighbourhood Park Construction of park amenities
PRC - Strategic Plan Strategic planning study for Parks,
Recreation and Culture services
Park Furnishings, signs, tables, Replacement of existing tables, Continuance of existing program
benches benches, signs, etc.
Beaver Valle}, Park Construction of park and amenities
t6
PARKS, RECREATION AND CULTURE
PROJECT DESCRIPTION COMMENTS
Skateboard Facility Building of new skateboard park May's Youth Advisory Committee
near Community Centre initiative
Firemen's Park Rehabilitation of existing facilities
Community Centre Building new indoor swimming In conjunction with Province of
pool/library/resource centre Ontario, YMCA, Niagara Falls
Library Board. To be completed in
2005
Kalar Road Sports Complex Buildin~ outdoor soccer facilities In conjunction with Niagara Falls
Girls' Soccer Association
Chippawa/VVilloughby Memorial Building new ball diamonds and Phase 1 of a multi-year project
Community Park )ark amenities
Playground Equipment Replacement and addition of park Continuance of existing program
playground amenities
Welcome Sign irrigation (Water Extension of water line to irrigate
line) QEW signage at Mount Road
Mitchell Line Trail Phase 1 Building of recreation trail along the Phase 1 of a multi-year program
Mitchell Line
Centennial Wall Relief artwork depicting War of City of Niagara Falls Centennial
1812 Project
Chippawa Arena Ice Resurfacer Purchase of new Zamboni
Arena Feasibility Study Study of arena ice surfaces needs
Heritage Master Plan Study Of all heritage sites and
services
Additional Ice Surfaces Study of arena ice surfaces needs
NF Memorial Arena Roof Repair Major repair to roof
Beautification Projects Upgrading of existing beautification New initiative from the
program Environmental and Greening
Committee
Millennium Trail Phase 2 Construction of recreational trail Phase 2 of a multi-year program
Garner Neighbourhood Park and Construction of park amenities
Trail
Cakes Park Boll Diamond Upgrade of ball diamond surface In conjunction with the Great
Renovation Niagara Baseball Association
C.B. Wright Neighbourhood Park Construction of park amenities
PRC - Strategic Plan Strategic planning study for Parks, -'
Recreation and Culture services
Park Furnishings, signs, tables, Replacement of existing tables, Continuance of existing program
benches benches, signs, etc.
Beaver Valley Park Construction of park and amenities
· CIT~ OF NIAGARA FALLS
2004 Capital Projects Budget 17
Cemeteries
I'~ 2004 Capital Projects
Opening Project or General Other Debenture Clos~13g
Project or Program Fund Program Purposes Funding Funding .Fund
Balance Cast Contrib. Sources Balance
(suqolus)defic (surplus)cleric
Project or Programs in Progress
Monument Restoration Phase 2 0 24,000 24,000 0
Drummond Hill Cemetery Phase 1 (20,621 75,621 55,000 SPR 0
TOTALS . (20,621 99,621 24,000 55,000 0 0
OTHER FUNDING SOURCES:
CR - Capital Reserves #137
SPR - Special Purpose Reserves #C02, 55.000
CEMETERIES
PROJECT DESCRIPTION COMMENTS
Monument Restoration Phase 2 Major repair and restoration
Drummond Hill Cemetery Phase 1
CITY' OF NIAGARA FALLS
2004 Capital Projects Budget
Niagara Falls Library
) 2004 Capi al Pro~ects
Opening Project or General Other Debenture Closing
Project or Program Fund Program Purposes Funding Funding Fund
Balance Cost Contrib. Sources Balance
($urplus}defic
Victoria Avenue Branch Phase II
Book Security System (10,372 10,372 0
Automation 0
Parking Lot & Sidewalks -- O
Stamford Branch Renovations
Community Centre Branch
Materials (33,589 348,589 50,000 135,00( 130,000 0
Furniture, Equipment 0
System Materials (books, al/) 0
FUNDING SOURCES:
DC - Development Charges 135,000
3ital Reserves #137
NIAGARA FALLS LIBRARY
PROJECT DESCRIPTION COMMENT
Victoria Avenue Book Security Completion of book security
automation project
Community Centre Branch Pumhase of book s for the new Year 2 of a multi-year purchase
Materials library plan
2005-2008 CAPITAL PROJECT FORECAST
TABLE OF CONTENTS
Paqe
Report F-2004-29 - 2005-2008 CaPital Projects Budget Forecast
2005-2008 Capital Budget Forecast Summary Statement . . ................. '1
2005-2008 Capital Budget Forecast Detail Statements:
General Government 3
Fire Services 4
Municipal Works ........................................ 5
Parking Lot Maintenance Services .......................... 6
Fleet and Facilities Maintenance Services ................... 7
Niagara Falls Transit ..................................... 8
Parks, Recreation and Culture ............................. 9
Cemeteries ............................................... 10
Niagara Falls Library ........................................ 11
Corporate Services Department F-2004-29
· .-~ Finance Division Kenneth E. Burden
The
City
of
I~1~1~ 4310 Queen Street Director
~gara FclllsJJ~.~llJf P.O. 8ox 1023
'-- Niagara Falls, ON L2E 6X5
]nada ~'~" ....
TI~[ web site: www.clty.nlagarafalls.on.ca
Tel.: (905) 356-7521
Fax: (905) 356-2016
E-mail: kburden@.city.niagarafalls.on.ca
April 19, 2004
His Worship Mayor Ted Salci
and Members of the Municipal Council~
City of Niagara Falls, Ontario
Members:
Re: F-2004-29 - 2005-2008 Capital Projects Budget Forecast
RECOMMENDATION:
That City Council approve the 2005-2008 Capital Projects Budget Forecast.
BACKGROUND:
The of the 2005-2008 Capital Projects Budget Forecast is to provide descriptive details of
purpose
the capital expenditures for continuing and future projects. It also indicates the funding requirements
and the sources of funds fi.om the General Purposes, Municipal Utility, other funding sources and
new borrowing.
Capital Contribution and Debt Management:
For a guidelines overview of the 2005 to 2008 Capital Projects Budget, Schedule "A" provides the
following:
e Guidelines from the Capital Financing and Debt Management Policy
e Comparison of Guidelines to the Capital Projects Budget
The criteria for calculating the guidelines are indicated in the upper section of the schedule and a
comparison to the Capital Projects Budget is reported in the lower section.
Cit~ 's Debt Management
The City's debt management guideline states that the debt repayment limit is 15% of the City's own
source revenues. Given the current level of own source revenues, the guideline would allow $14.2
million in annual debt servicing.
Working Together to Serve Our Community
Clerks · Finance Human Resources · Information Systems · Legal Planning & Development
April 19, 2004 - 2 - F-2004-29
During 2004, the City will be committed to the payment of $1.4 million for debt repayment. This
amount, when compared to the Debt Repayment Limit of $14.2 million, indicates that the City has
a considerable capacity to assume additional debt financing. Funding sources for the 2005-2008
Capital Projects Forecast may require debt financing. The comparison shows that the City will not
exceed the debt repayment limit but will increase the debt repayment to $4.0 million by the year
2009.
Implications o[ taMng on Additional Debt
Debt repayment is a fixed expense in the City's general operations. A commitment to pay debt is
a charge upon the City to collect sufficient amounts from rateable property to pay the principal and
interest due. An increase in debt repayment must be matched by an increase in revenues. Given that
revenues must match this increasing expense and also given that such an expense is to be levied
against rateable property, the additional debt may result in a tax levy increase.
¢i~'s Capital Contribution
The General Purposes contribution to the Capital Projects Budget does exceed the maximum
guideline. The contribution includes the use of increased taxation from the new Casino to fund
specific capital projects. Through the use of short-term financing and the dedication of the increased
revenue, both the Niagara Falls Community Centre and the railway corridor acquisition can be fully
funded by 2009.
2005-2008 Capital Pro]ects Detail
In the following pages, major City services are shown separately, showing the respective capital
projects as they may be implemented during 2005 to 2008. Being a forecast of revenues and
expenditures, each project will necessarily be re-evaluated in accordance with Council priorities
when the project becomes due for consideration.
Recommended by: '~espectfully submitted:g
(
K. E. Burden )hn MacDonald
Director of Finance hief Administrative Officer
Approved by:
T. Ravenda
Executive Director of Corporate Services
Schedule 'A'
CITY OF NIAGARA FALLS
CAPITAL CONTRIBUTION AND DEBT MANAGEMENT
2004 CAPITAL PROJECTS BUDGET
2005-2008 CAPITAL PROJECTS FORECAST
( '000 of dollars )
GUIDELINES 2004 2005 2006 2007 2008
DEBT REPAYMENT LIMIT
Revenue Fund Revenues $94,774 $96,670 $98,603 $100,575 $102,587
15% Maximum Limit of Revenues -~ 14,216 14,501 14,790 15,086 15,388
GENERAL PURPOSES CONTRIBUTION
TO CAPITAL PROJECTS BUDGET
Previous Year's Supplemental Taxes 570 625 638 650 663
50% Maximum Contribution of Supplemental Taxe.~ 285 313 319 325 332
COMPARISON OF GUIDELINES TO THE 2004 2005 2006 2007 2008
2004-2008 CAPITAL PROJECTS BUDGET
DE.TREP^Y. ENT
Existin9 Debt Repayment $1,475 $1,475 $2,223 ! $3,056 $3,553
Add: New Debt Repayment 919 938 498 409
Total Debt Repayment 1,475 2,394 3,161 3,554 3,962
Debt Repayment Limit per the Guideline 14,216 14,501 14,790 15,086 15,388
Difference - (under)over the Limit (12,741) (12,107: (11,629) (11,532', (11,427
GENERAL PURPOSES CONTRIBUTION
TO CAPITAL PROJECTS BUDGET
Current Year's Contribution $6,396 $6,596 $5,848 $7,219 $6,518
Use of New Casino P.I.L. Contribution 2,679 4,589 4,589 4,589 4;589
Subtotal General Purposes Contribution 9,075 11,185 10,437 11,808 11,107
Subtract: Previous Year's Contribution 6,226 9,075 11,185 10,437 11,808
Difference - increase (decrease) in Contribution 2,849 2,110 (748) 1,371 (701
Maximum Contribution per the Guideline 285 313 319 325 332
Difference - (under)over the Maximum 2,564 1,798 (1,067 1,046 (1,033
CITY OF NIAGARA FALLS
2008-2008 CAPITAL PROJECTS FORECAST
Summary Annual Expenditures
Total Pro ect or Program Expenditures After 2008
Capital Projects Project Project Project Project Project Project Project Project
or Program Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Come
General Government 17,470,588 16,304,853 965,735 150,000 0 0 0 50,000
Fire 12,092,647 1,720,284 1,445,757 2,749,000 1,105,000 1,165,000 1,025,000 2,882,606
MunicipaIWorks 115,314,674 ~2,763,371 28,315,790 14,330,189 14,811,360115,613,315 10,649,664 8,830,985
Parking 1,220,000 0 430,000 280,000 230,000 230,000 50,000 0
Fleet and Facilities 6,829,338 1,046,338 1,783,000 1,000,000 1,000,000 1,000,000 1,000,000 0
Transit 3,778,719 943,719 945,000 945,000 472,500 0 0 472,500
Parks, Recreation and Culture 39,403,541 4,149,830 17,041,342 8,435,161 1,576,750 864,050 1,252,000 6,084,408
)meter[es 531,000 152,337 99,621 49,000 50,000 50,000 50,000 80,042
Libraries 1,736,000 359,039 358,961 683,000 165,000 105,000 65,000 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
'
TOTALS 198,376,507 47,439~771 51,385,206 28,621~350 19,410,610 19,027~365 14~091,664 18,400~541
2005-2008 Capital Projects Forecast
Forecast of Expenditures
30
UJ
10
5
0
2005 2006 2007 2008
Forecast of Funding Sources
35
32001385
3O
25 25177885 25589236
21132364
c20
10
5
0
2005 2006 2007 2008
[] Debt Financing · General Purposes
· Other Sources of Funds Contribution
· Municipal Utility Contribution
CITY OF NIAGARA FALLS
2005-2008 CAPITAL PROJECTS FORECAST
General Government Annual Expenditures
Tota~ Project or Program Expenditures After 2008
Capital projects Project Project Project Project Project Project Project Project
er Program Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Come,~
Projects in Progress
Montrose Business Park 1,159,715 1,159,715 0 0 0 0 0 0
Land Sales and Purchases 634,933 144,933 490,000 0 0 0 0 0
Railway Corridor Acquisition 13,279,873 13,279,873 0 0 0 0 0 0
New Financial Software & Equipment 725,000 519,373 205,627 0 0 0 0 0
Development Charges Update Study 51,200 6,092 45,108 0 0 0 0 0
Property Reclamation - Montrose/McLeod 1,194,867 1,194,867 0 0 0 0 0 0
~ New Projects
~rmation Systems
~&- commerce System 300,000 0 150,000 150,000 0 0 0 0
Finance/Information Systems
Office/computer equipment 75,00{~ 0 75,000 0 0 0 0 0
Niagara Falls Humane Society Capital
Contribution for Facility Repairs 50,000 0 0 0 0 0 0 50,000
TOTALS 17,470,588 16,304,853 965,735 150,000! 0 0 0 60~000
CITY OF NIAGARAFALLS 4
2005-2008 CAPITAL PROJECTS FORECAST
Fire Services Annual Expenditures
Project or Pro! ~ram Expenditures After 2008
Capital Projects Total Project Project Project Project Project Project Project
Project Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Come
?roject or Programs in Progress
Rural Property Signage [FS-2002-08] 43,500 25,543 17,957 0
Boat Motors & Marine Eqmt. [FS-2003-04] 25,000 16,207 0 0 8,793
Diesel Erdissions Filtration Sys. [FS-2003-08' 155,910 155,910 0 0 0
Crisys Intalliioader [FS-2003-07] 56,155 56,155 0 0 (0]
UHF Tmnked Radio System [FS-2003-05] 448,154 435,288 0 12,866
Fire Station #4 Addition [FS-2003-78] 396,470 396,470 0 0
Fire Prevention Office Furniture [FS-2003-0.( 44,200 ~ 34,195 0 10,005
S.C.B.A. Equipment Replacement 496,548 482,692 0 13,856
Replacement Defibrillators [FS-2003-11 ] 66,160 66,160 0 0
Thermal Imaging Camera [FS-2003-15] 20,125 19,108 0 1,017
Supp, Training, Rescue Eqmt. [FS-2003-18~ 168,625 32,555 0 60,000 60,0£ 16,070
Radio & Telephone Recorder [FS-2004-01] 41,300 41,300 0 0
Flashover Training Unit [FS-2003-17] 15,500 15,500 0 ,0
New Project or Programs
Training Tower Upgrade, Station #1 20,000 20,000 0
Laser Fiche, Fire Administration 10,000 10,000 0
Name Change Insignia 15,000 15,000 0
Outboard Motor Replacement/Boat upgrades 25,000 25,000 0
Training Tower - outside stairs 151000 15,000 0
~ ~tion 6 Replacement 1,950,000 150,000 1,800,000
i 0 0 0
"-~r~fibrillator Replacement, Fire Stations 35,000 35,000 0 0 i
Air Compressor Replacement (with tanks) 25,000 25,000 0
Additional SCBA Cylinders 36,000 18,000 18,000 0
Thermal Imaging Camera 125,000 25,000 25,000 25,000 25,0(; 25,00
Fire Command Vehicle Replacement 48,000 48,000 0 0
Fire Station #1 Renovations & Addition 950,000 950,000 0 0
Emergency Operations Centre Equipment 35,000 35,000 0 0
Security and Card Access System 90,000 90,000 0
Hydraulic Ladder Rack (Pumper 4) 11,000 11,000 0 0
Fire Prevention Vehicte 20,000 20,000 0 0=
Emergency Preparedness Communications 30,000 0 30,000 0 0
Intemperability Radio Upgrades 70,000 0 70,000 0 0
Fire Rescue #2 Replacement & Equipment 350,000 0 350,000 0 0
Fire Aerial #4 Replacement 275,000 0 275,000 0 0
Equipment for Aerial 50,000 0 50,000 0
Pumper replacement - 1980 International 375,000 0 375,000 0 0
Equipment for Pumper 60,000 0 60,000 0 0
New station Lundy's Lane/Kalar Rd. 950,000 0 100,000 200,000 650,000
Pumper replacement- 1986 International 375,000 0 375,000 0
Equipment for Pumper 60,000 0 60,000 0 0
Aerial Truck 1,120,000 0 320,000 800,000
Equipment for Aerial Truck 60,000 0 60,000 0
l Pumper rePacement - 1991 Superior 400,000 0 400,000 0
Equipment for Pumper 60,000 0 60,000 0
New station Fallsview Area 1,200,000 100,000 200,000 900,0£
New Pumper/Aerial - Ka{ar Rd Station 750,000 0 750,000
Equipment for Pumper/Aerial 60,000 0 60,000
New Pumper - Fallsview 400,000 0 0 400,000
Equipment for Pumper 60,000 0 0 60,00(3
!luipment for Pumper 0
TOTALCOSTS 12,092,647 1,720,284 1,445,757 2,749,000j 1,105,000 1,165,000 1,025,000 2,882,60§~
CITY OF NIAGARA FALLS
2005-2008 CAPITAL PROJECTS FORECAST
Parking Lot Maintenance Services
Total Project or Program Expenditures After 2008
Capital Proiects Project Project Project Project Project Project Project Project
or Prograrr Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Co me
Parking Lot Reconstruction 500,000 0 250,000 100,000 50,000 50,000 50,000 0
Parking Lot Pay and Display Ticket
Dispensers Replacement 120,000 0 30,000 30,000 30,000 30,000 0 0
On-Street Pay and Display Ticket
Dispensers Replacement 600,000 0 150,000 150,000 150,000 150,000 0 0
TOTALS 1,220,000 0 430000 280000 230000 230000 500001 0
CITYOF NIAGARA FALLS 7
2005-2008 CAPITAL PROJECTS FORECAST
Fleet and Facilities Maintenance Services
Total Project or Program Expenditures After 2008
Capital Projects Project Project Project Project Project Proje~ Project Project
or Program Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Come
Vehicle Replacement 5,996,338 1,046,338 950,000 1,000,000 1,000,000 1,000,000 1,000,000 0
City Hall Roof Replacement 200,000 0 200,000 0 0 0 0 0
3ity Hall Elevator Repairs 90,000 0 90,000 0 0 0 0 0
City Hall Clerks Department Renovation 30,000 0 30,000 0 0 0 0 0
City Hall Council Chambers Renovation 50,000 0 50,000 0 0 0 0 0
City Hall Finance/Info. Sys. Renovation 36B,000 0 368,000 0 0 0 0 0
Community Resource Ctr. Roof Replacement 25,000 '- 0 25,000 0i 0 0 0 0
Service Ctr. Tin Roof Replacement 70,000 0i 70,000 0 0 0 0 0
TOTALS 6,829,338 1046338 1783000 1000000 1000000 1000000 1000000 0
CITY OF NIAGARA FALLS
2005-2008 CAPITAL PROJECTS FORECAST
Niagara Falls Transit Annual Expenditures
Total Project or Program Expenditures After 2008
Capital Projects Project Project Project Project Project Project Project Project
or Program Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Come
Project or Programs in Progress
Transit Coaches 2003 (tva3 coaches) 943,719 943,719 0 0 0 0 0 0
Transit Coaches 2004 (two coaches) 945,000 0 945,000 0 0 0 0 0
Transit Coaches 2005 (two coaches) 945,000 0 0 945,000 0 0 0 0
Transit Coaches 2006 (two coaches) 945,000 0 0 0 472,500 472,500 0 0
TOTALS 3,778,719 943~719 945,000 945,000 472~500 472~500 0 0
CITY OF NIAGARA FALLS
2005-2008 CAPITAL PROJECTS FORECAST
Parks, Recreation and Culture Annual Expenditures
Total Project or Pro~ram Expenditures After 2008
Capital Projects Project Project Project Project Project Project Project Project
or Program Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Come
Project or Program in Progress
Skateboard Facility 347,850 37,105 310,745 0 0 0 0 0
~imrnen's Park 180,000 3,554 176,446 01 0 0 0 0
3ommunityCentre !4,000,000 3,203,81614,603,298 6,192,886 0 0 0 0
~atar Road Sports Complex 1,126,780 697,344 146,000 97,000 189~000 0 0 (2,564.
(Girls Rome for Soccer)
C, hippWill. Memorial Community park 4,110,000 50,027 649,976 965,025 652,000 594,000 602,000 596,972
Pa~ck Cummings Mem. Sports ComplE
Pta).~groond Equipment 175,000 20,074 19,926 50,000 50,000 35,000 0 0
l/Veloome Sigl3 Irrigation (Water line) 25,000 515 24,485 0 0 0 0 0
0eautifica~on Projects 43,999 43,999 0 0 0 0 0 0
Mitchell Line Trail Phase I 62,000 20,176 41,824 0 0 0 0 0
Mitchell Une Troll Phases 2 - 4 261,050 0 0 40,250 120,750 100,050 0 0
Centennial Wall 150,000 42,253 107,747 0 0 0 0 0
Chippawa Arena Ice Resurfacer 71,829 0 71,829 0 0 0 0 0
Arena Feasibility Study 49,883 30,967 18,916 0 0 0 0 0
Heritage Master Plan 100,000 0 100,000 0 0 0 0 0
New Pro, lect or programs
Additional Ice Surfaces 7~,000 0 75,000 0 0 0 0 0
NF Memoflal Arena Roof Repair 32,000 0 32,000 0 0 0 0 0
Beautification Projects 500,000 0 50,000 25,000 25,000 25,000 25,000 350,000
Millennium Trail Phase 2 550,000 0 97,000 453,000 0 0 0 0
Millennium Trail Phase 3 300,00(3 0 0 0 300,000 0 01 0
Millennium Trail Phase 4 325,00~ 0 0 0 0 0 325,000: 0
Garner Neighborhood Park and Trail 290,00(3 0 25,000 265,000 0 0 0 0
Oaks Park Ball Diamond Renovation 31,00~ 0 31,000 0 0 0 0 0
C.B. Wright Neighbeurhood Park 185,00(3 0 185,000 0 0 0 0 0
pRC - Strategic Plan 50,000 0 50,000 0 0 0 0 0
Park Furnishings, signs, tables,benches 55,150 0 55,150 0 0 0 0
Beaver Vatiey Park 170,000 0 170,000 0 0 0 0 0
StamMemArena - Ice Resurfacer 72,000 0 0 72,000 0 0 0
Chippawa Arena Roof Repair 125~000 0 0 125,000 0 0 0
Montrose Community Park 150,000 0 0 150,000 0 0 0 0
F.H. Lesiie Pool Liner 100,000 0 0 0 100,O00 0 0 0!
Crowland Park 400,000 0 0 0 50,000 50,000 300,000 0
Swimming Pool Repairs/Rennovations 150,000 0 0 0 90,000 60,000 0 0
Mewbom Sports Complex ; 2,260,000 0 0 0 0 0 0 2,200,000
Acquisition of Mitchell Line 1,100,000 0 0 0 0 0 0 1,100,000
3eorge Bukator Park 290,000 0 0 0 0 0 0 290,000
Redmond Coronation Improvements 800,000 0 0 0 0 0 0 800,000
Dptimist Park Building Expansion 750,000 0 0 0 0 i 0 0 750,000
TOTALS 19,403,541 . 4,149,830 17,041,342 8,435,161 1,576,750 ~64,050 1,252,000 6,084,408
CiTY OF NIAGARA FALLS
2005-2008 CAPITAL PROJECTS FORECAST
~ Cemeteries Annual Expenditures
Tote[ Proiect or Program Expenditures After 200~
Capital Projects Project Project Project Project Project Project Project Project
or Program Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Come
Project or Programs in Progress
Monument Restoration Phase 2 200,000 0 24,000 24,000 24,000 24,000 24,000 80,000
Drummond Hill Ceme{ery Phase I 331,000 152,337 75,621 25,000 26,000 26,000 26,000 42
TOTALS 531~000 152,337 99,621 49~000 50,000 50,000 50,000 80~042
CITY OF NIAGARA FALLS ]
2005-2008 CAPITAL PROJECTS FORECAST
Niagara Fails Public Library Annual Expenditures
Total Project or Program Expenditures After 2008
Capital Projects Project Project Project Project Project Project Project Project
or Program Costs Costs Costs Costs Costs Costs Costs
Cost To Date 2004 2005 2006 2007 2008 To Come
New Project or Programs
Victoria Avenue Branch Phase II ,
Book Security System 108,000 97,628 10,372 0 0 0 0 0
Automation 110,000 0 0 0 110,000 0 0: O
Parking Lot & Sidewalks 50,000 0 0 0 0 50,000 0 0
Stamford Branch
Renovations 33,000 0 0 33,000 0 0 0 0
New SouthWest Branch
Materials 910,000 261,411 348,589 190,000 55,000 55,000 0 0
Furniture, Equipment 460,000 0 0 460,000 0 0 0 0
System Materials (books, a/v) 65,000 0 0 0 0 0 65,000 0
TOTALS 1,736,00~ 359~039 358,961 683,000 165,000 105,000 65,000 0
BEYOND 2008 CAPITAL PROJECT FORECAST
TABEE OF CONTENTS
Page
Deferred Capital Projects:
Fire Services .................... 1
Municipal Works ............................................... 2
Parks, Recreation and Culture .................................... 3
FIRE SERVICES
PROJECT DESCRIPTION COMMENTS
New Fire Station Build new fire station in the · Environmental Assessment and
Lundy's Lane/Kalar Road southwest quadrant Needs Study will proceed to new
station development when funds
are available
New Fire Station Build new fire station in the tourist Environmental Assessment and
Fallsview Area core area Needs Study will proceed to new
station development when funds
are available
New Pumper/Aerial for Kalar Road Purchase of additional fire Purchase will be timed when the
Station and Equipment emergency vehicle new station is opened
New Pumper for the Fallsview area Purchase of additional fire Purchase will be timed when the
emergency vehicle new station is opened
MUNICIPAL WORKS
PROJECT DESCRIPTION COMMENT
Fallsview Boulevard reconstruction Continuation of the development of ' The Environmental Assessment
from Murray Street to Ferry Street tourist core roads, water and sewer and public process must first take
place prior to project initiation
Beaverdams Road Reconstruction Continuation of the road ! The Environmental Assessment
reconstruction program = and public process must first take
place prior to project initiation
P, iall Street Storm Separation Continuation of the sewer The Environmental Assessment
separation program and public process must first take
place prior to project initiation
Railway Separation Environmental Build alternate access for The Environmental Assessment
Assessment and Construction emergency and regular traffic and public process must f'~rst take
place prior to project initiation
3
PARKS, RECREATION AND CULTURE
PROJECT DESCRIPTION COMMENT
Mewburn Sports Complex Development of recreational Public process for PRC Master
facilities and parks Plan needs to be completed
Acquisition of Mitchell Line Purchase of lands for the Replenishment of existing own
continuation of the Mitchell Line source funds or new borrowing
Trail
George Bukator Park Development of recreational Replenishment of existing own
facilities- source funds or new borrowing
Redmond Coronation Development of Redmond property Replenishment of existing own
Improvements in accordance with the Heritage source funds or new borrowing
Master Plan
Optimist Park Building Expansion Grant request over three years
from the Optimist Club