ADMINISTRATIVE REPORT

Dated: February 2, 1998

Author/Local: J. Beresford / 7789

CC File No. 1602

TO: Standing Committee on City Services and Budgets

FROM: Director of Finance

SUBJECT: 1998 Park Board Capital Budget

RECOMMENDATIONS

A. THAT the 1998 Park Board Basic Capital Budget totaling $7,513,150 as summarized in this report and detailed in Appendixes 1 and 2 be approved, with the funding to be provided from the following sources;

a) $6,113,150 from borrowing authority as approved as part of the 1997-1999 Capital Plan, and

b) $1,400,000 from 1998 Revenue Capital, subject to the approval of the 1998 Operating Budget.

B. THAT Council approve as part of the 1998 Park Board Capital Budget, the allocation of $1.0 million of the Community Centre improvement funding approved in an opinion question accompanying the 1996 municipal election, source of funding to be an increase in Capital from Revenue in the 1998 Operating Budget. This approval is subject to approval of the 1998 Operating Budget.

GENERAL MANAGER COMMENT

The General Manager of Corporate Services RECOMMENDS approval of A and B.

COUNCIL POLICY

The 1997 - 1999 Capital Plan includes provision for $24.5 million in Park Board capital expenditures to be funded from debentures ($21.7 million) and Capital from Revenue ($2.8 million) over the three years of the plan.

PURPOSE

The purpose of this report is to advise Council of the funding requirements of the 1998 Park Board Basic Capital Budget as recommended by the Director of Finance.

BACKGROUND

The 1997 - 1999 Capital Plan forms the framework within which annual capital budgets are prepared. The 1997-1999 Park Board Capital Plan identifies $24.5 million of expenditures to fund various capital works over the three year period. Funding for these capital expenditures comes from debenture borrowing ($21.7 million) approved by the plebiscite and from Capital from Revenue ($2.8 million) approved as part of the annual Operating Budget.

On December 8, 1997, when considering a staff report on the proposed 1998 Park Board Capital Budget (attached as Appendix 1), the Park Board approved the following recommendations:

A. THAT the Park Board Capital Budget in the amount of $7,263,150 as outlined in Schedule A be approved subject to final approval by Council.

B. THAT the 1998 Community Centre Referendum Improvement budget in the amount of $1,000,000 be approved and that Council be requested to contribute this amount, to be funded from revenue capital.

Subsequently, on February 2, 1998, the Park Board approved a further funding recommendation (attached as Appendix 2).

THAT the Park Board allocate an additional $250,000 to the Kerrisdale Community Centre capital project for 1998.

DISCUSSION

The 1998 Park Board Capital Budget represents the second arising from the 1997-1999 Capital Plan. The following table summarizes the funding provided in the Plan for Park Board and the allocation of that funding in annual capital budgets.

	Capital Plan 1997 - 1999	1997 Approved	1998 Proposed	1999 Proposed
Debenture funding	$21,700,000	$11,273,900	$6,113,150	$5,712,950
Revenue Capital	2,800,000	0	1,400,000	1,400,000
Total	$24,500,000	$11,273,900	$7,513,150	$7,112,950

The proposed 1998 Capital Budget identified in the table above is inclusive of the $7,263,150 approved by the Park Board on December 8, 1997, and the subsequent request of $250,000. Details of the proposed expenditures are included in the accompanying booklet entitled "Submissions to the 1998 Capital Budget - Park Board". [ Limited Distribution to Council - copy on file in City Clerk's Office.]

Recommendation A provides for the necessary approvals for debenture funding to be allocated to the proposed Capital Budget. The balance of the funding will be provided from Capital from Revenue funds included in the 1998 Operating Budget and are approved here subject to approval of the Operating Budget. Should that allocation not be confirmed, the Board will curtail the portion of the 1998 program funded from this source, or will request additional borrowing authority within the limits of the Capital Plan in order to undertake the program as identified.

In addition to the 1998 funding in the table above, the Park Board is requesting that $1.0 million of the total $2.0 million Community Centre Improvement funding be approved as part of the total 1998 capital program in order to begin Community Centre upgrade work. This additional funding was approved in an opinion question as part of the 1996 municipal election. Allocation of these funds is at Council’s discretion. The source of funding for this allocation will be Capital from Revenue. Recommendation B of this report indicatesCouncil’s agreement to provide this funding in 1998, subject to approval of Capital from Revenue in the 1998 Operating Budget.

CONCLUSION

The 1998 Park Board Capital Budget represents the second annual budget arising from the 1997-1999 Capital Plan and provides for the authorization and allocation of funding included in that Plan to individual projects.

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(c) 1997 City of Vancouver