BUDGET 2016 Town of Oakville 2016 2025 Capital

BUDGET 2016 Town of Oakville 2016 – 2025 Capital Budget and Forecast Budget Committee October 5, 2015 Budget Committee – October 5, 2015 1

BUDGET 2016 Agenda • Election of Budget Chair • 2016 to 2025 Capital Forecast and Financing Plan – Presentation by Nancy Sully, Deputy Treasurer, Director of Financial Planning Budget Committee – October 5, 2015 2

BUDGET 2016 Draft Capital Budget and Long Term Financial Forecast • Key financial planning tool • Sets the financial roadmap to achieve town’s strategic objectives • Allows for evaluation of current decisions on future years – Impact on tax rates, reserves and reserve funds, and debt levels Budget Committee – October 5, 2015 3

BUDGET 2016 Operating and Capital Budgets Not Independent Operating Budget -Capital Levy -Contributions to reserves -Affordability of capital impacts Budget Committee – October 5, 2015 Capital Budget -Operating cost of new facilities -Debt charges -Future replacement provisions

BUDGET 2016 Capital Budget and Long Term Financial Forecast • Fiscally sustainable • Ensures sufficient funding to maintain existing assets and plan for the future • Reserve balances maintained at appropriate levels • Financial indicators remain positive • Limited debt financing Budget Committee – October 5, 2015 5

BUDGET 2016 Long Term Financial Forecast • Forecast includes the outcomes of many financial planning initiatives – – Master Plans Land Use Planning Studies Infrastructure renewal requirements Development Charges Background Study • Includes not only capital plan but also: – capital driven operating costs – reserve and reserve fund balances – debt levels Budget Committee – October 5, 2015

BUDGET 2016 Capital Financing Policies & Assumptions • Debt repayment levels within Council approved guideline • Outstanding debt to reserve ratio maintained at 1: 1 or better • 1% capital levy continues throughout forecast • Growth projects aligned with anticipated development • DC reserve funds return to positive position • DC supported debt capped at 25% of average collections • Infrastructure renewal reserves to support life cycle replacement of assets Budget Committee – October 5, 2015 7

BUDGET 2016 Draft 10 Year Capital Forecast • Forecast divided into 5 components: – – – Infrastructure Renewal Growth Strategic Priorities Community Enhancements Enterprise Initiatives Budget Committee – October 5, 2015 8

BUDGET 2016 Draft 10 Year Capital Forecast ($ Millions) Budget Committee – October 5, 2015 9

BUDGET 2016 10 Year Capital Plan by Category 200, 0 180, 0 160, 0 140, 0 $ Millions 120, 0 $123, 7 $112, 3 $117, 4 100, 0 $105, 4 80, 0 $94, 2 $99, 8 $91, 6 $97, 1 $94, 6 $86, 0 60, 0 40, 0 20, 0 2016 2017 2018 2019 2020 2021 Infrastructure Renewal Growth Community Enhancements Enterprise Initiatives Budget Committee – October 5, 2015 2022 2023 2024 2025 Strategic Priorities 10

BUDGET 2016 Infrastructure Renewal Funding Sources Highlights • Road Preservation Program - $96. 5 M Reserve Funds (Parkland & Gas Tax) 12% • Vehicle & Equipment Replacements $100. 2 M • Facility Renewal $72. 2 M • Park & Trail Rehabilitation - $44. 2 M • Road & Bridge Improvements $42. 7 M Budget Committee – October 5, 2015 Building Maintenance Reserve Fund 9% Equipment Reserves 20% Capital Levy 44% Capital Reserves 14% 11

BUDGET 2016 Growth Funding Sources Highlights • Kerr St. Grade Separation - $42 M • New Vehicles and Equipment - $43. 1 M • North Operations Depot Phase 2 - $17. 6 M • Sixteen Mile CC and Library (design) $12. 6 M Development Charge Contributions 64% Reserve Funds 1% External Revenues 13% Capital Levy 15% Gas Tax 7% • New Parks and Parkettes - $25. 9 M Budget Committee – October 5, 2015 12

BUDGET 2016 Development Charge Reserve Funds Projected Balance 2015 -2025 Development Charge Reserve Funds OPENING BALANCE EXPENDITURES: Current Year Budget Trf To Capital 2015 2016 2017 2018 2025 Projected Projected Balance Balance 3, 347, 777 3, 450, 724 (19, 096, 511) (27, 238, 913) 38, 450, 992 (32, 476, 300) (18, 404, 200) (49, 678, 000) (16, 526, 300) (21, 802, 200) Commitments(1) (12, 635, 293) (25, 217, 096) Debt Charge Trf to Operating (5, 011, 100) (5, 023, 600) (34, 172, 693) (52, 042, 896) Prior Year TOTAL EXPENDITURES REVENUES: Developement Charges Revenue TOTAL REVENUE Interest CLOSING BALANCE Budget Committee – October 5, 2015 34, 009, 000 27, 463, 866 (5, 026, 400) (37, 502, 700) 27, 463, 866 (3, 995, 500) (22, 399, 700) (49, 678, 000) 27, 463, 866 33, 360, 574 34, 009, 000 27, 463, 866 33, 360, 574 266, 640 2, 031, 795 1, 896, 432 2, 057, 286 4, 303, 915 (19, 096, 511) (27, 238, 913) (20, 117, 461) 26, 437, 481 3, 450, 724 13

BUDGET 2016 Strategic Priorities Highlights Funding Sources Reserve Funds (Parkland & Gas Tax) 4% • EAB Management Program - $28. 8 M • LED Streetlighting conversion - $12 M • OTM Hospital Demolition $11. 7 M • Fire Station #3 $7. 3 M Budget Committee – October 5, 2015 Debt 13% Capital Reserves 35% Capital Levy 47% 14

BUDGET 2016 Community Enhancements Highlights Funding Sources • Oakville Arena Rehabilitation and Seniors’ Centre $29. 4 M • South Central Community Centre and Neighbourhood Park - $25. 6 M • Park and Trail Improvements $7. 1 M Budget Committee – October 5, 2015 Parkland Reserve Fund Gas Tax 8% 4% Capital Levy 21% Capital Reserves 55% 15 Development Charges 12%

BUDGET 2016 Enterprise Initiatives Funding Sources Highlights • Seawall Installation and Rehabilitation Projects - $4. 9 M • Parking, Cemetery and Harbours Vehicle and Equipment Replacement $2. 9 M • Parking Garage Rehabilitation and Lot Maintenance $1. 4 M • Cemetery Land Product development – $0. 9 M Budget Committee – October 5, 2015 Cemetery Reserves 20% Parking Reserves 24% Town Sources 38% Harbours Reserves 18% 16

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BUDGET 2016 $2. 78 $2. 46 $2. 08 $1. 61 $1. 30 Budget Committee – October 5, 2015 $1. 51 $1. 19 $1. 03 22

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BUDGET 2016 Next Steps • October 5 Committee receives Long-term Financial Forecast • Meeting adjourned until October 21 to allow time for review of information • October 26 - direction to staff on capital budget • Final capital budget considered with operating budget in November 2015 • Approval targeted for December 14, 2015 Budget Committee – October 5, 2015 24

BUDGET 2016 Questions & Answers Budget Committee – October 5, 2015