Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

Date: April 10, 2000
Author / Local: J. Beresford / 7789
RTS #01452
File No. 1602
CS&B: May 18, 2000

TO: Standing Committee on City Services and Budgets

FROM: General Manager of Corporate Services / Director of Finance

SUBJECT: 2000 Basic Capital Budget

RECOMMENDATION

COUNCIL POLICY

It is Council policy to identify capital funding priorities in three year Capital Plans. These Plans and the associated Capital Financing Plan are developed such that the plan and necessary borrowing authority can be put to the voters at the time of triennial civic elections.
The Capital Plan forms the framework within which annual capital budgets are prepared. The two components of the annual capital budget are:

… Basic Capital, which includes project/program - specific items that were included in the Capital Plan, and
… Supplementary Capital, which includes items which had not been anticipated in the Capital Plan but which have become a priority during the course of the Plan.

The 2000 - 2000 Capital Plan includes provision for $38.0 million in capital expenditures to be funded from the Operating Budget (Capital from Revenue) over the three years of the plan. The 2000 component of this funding is $10.5 million.

PURPOSE

The purpose of this report is to summarize the 2000 Capital Budget and to seek Council approval for the allocation of Capital from Revenue funding and for debenture authority necessary to complete the funding of the 2000 Capital Program.

BACKGROUND

The 2000 - 2002 Capital Plan has guided the development of annual capital budgets in 2000, 2001 and 2002. Funding for the plan is derived from borrowing authority approved by plebiscite ($85,955,000) and by Council for sewer and water projects ($109,995,000). In addition, the plan includes provision for $38.0 million in capital expenditures to be funded from the Operating Budget (Capital from Revenue) over the three years of the plan.

Borrowing authority from prior Capital Plans has been carried forward into the 2000-2002 Capital Plan and is in addition to the totals indicated above. Authority from the 1991-1993 Capital Plan ($1,038,500) and the 1994-1996 Capital Plan ($1,083,500) has been included in the tables in this report.

Capital from Revenue of $10.5 million was approved as part of the 2000 Operating Budget, May 4, 2000. The balance of $27.5 million will be allocated over the remaining two years of the Capital Plan.

Council approved has approved funding for three programs in advance of the 2000 Capital Budget as follows:

… Fit out of the CLEU building for use by the Criminal Intelligence Section of Police of $857,000, to be provided from funds remaining from the 1994 - 1996 Capital Plan.

… Economic revitalization funds for the Downtown Eastside of $315,000 to support the Tenant-Improvements Assistance Program and the Lease Subsidy Program, with funding to be provided from the 2000 Capital Budget.

DISCUSSION

1. Funding for the 2000 Basic Capital Budget.

The following table summarizes the total funding for the 2000- 2002 Capital Plan, as adjusted by Council actions detailed in the Background Section of this report and as proposed in Recommendation A. The table also shows the portion to be allocated to the 2000 Capital Budget and the balance of funding to be available for the remaining two years of the Capital Plan.

($‘000) Capital Plan Summary   2000
Allocations Budget		 Unallocated Balance
 
Capital from Revenue: $38,000   $10,500 $27,500
 

Debenture Authority:
Plebiscites (prior years)(1) (2) 2,122   1,896 226
Plebiscite 2000 - 2002 (3) 85,955   29,050 56,905
Sewer 51,045   $17,015 $34,030
Water 58,950   $18,350 $40,600
Total Debentures 198,072   $66,311 $131,761
 
Total Funding ($’000) $236,072   $76,811 $159,261

Notes:

1. On February 15, 2000 Council approved funding of $857,000 from prior years capital funding in advance of the 2000 Capital Budget for “fit out” of the CLEU building (Criminal Intelligence Section of the Police Department).
2. The 2000 Engineering Capital Budget includes the allocation of $1,038,500 of borrowing authority approved as part of the 1991-1993 Capital Plan.
3. On March 16, 2000, Council approved funding of $315,000 in advance of the 2000 Capital Budget for funding of two Downtown Eastside Economic Revitalization projects, the Tenant Improvement Assistance program and the Lease Subsidy Program.

A summary of the projects/programs in the 2000 - 2002 Capital Budget and the funding allocated in the Plan, and in the 2000 Capital Budget, is included in Appendix 1. Appendix 2 provides additional detail about the projects/programs funded in the Public Safety, Social and Cultural Facilities and Other categories of the 2000 Capital Budget.

As noted in the table, $66,310,666 of the funding for the 2000 Basic Capital Budget comes from debenture authority, including $30,945,666 from plebiscite authority (including prior years) and $35,365,000 in sewer and water authority approved by Council.

2. Funding for the 2000 Supplementary Capital Budget

With the adjustments approved by Council, the 2000 - 2002 Capital Plan includes $5.0 million for the Supplementary Capital Budget. In 2000, it is recommended that $1,906,400 of this funding be allocated to Supplementary Capital. The remaining $3,093,600 of Supplementary Capital Budget will be allocated to 2001 and 2002.

The allocation of these funds to specific projects recommended for funding in 2000 will be reported to City Services and Budgets Committee on May 18, 2000.

COMMENTS ON THE BASIC CAPITAL BUDGET REQUESTS

1. Engineering Basic Capital Budget

The 2000 Engineering Basic Capital Budget has been submitted as an accompanying report, and includes the recommendations necessary to provide funding for identified projects . The Engineer has requested funding totalling $57,047,000 which fits within the 2000-2002 Capital Plan allocation. The majority of this funding is provided from 2000 - 2002 borrowing authority approved by plebiscite ($17,449,500) and by Council for sewer and water ($35,365,000), while the balance is provided from the 1991 - 1993 prior years’ Capital Plan ($1,038,500), and from Capital from Revenue ($3,194,000). The 2000 - 2002 Capital Plan includes $12.4 million in waterworks borrowing authority left unallocated from the 1997 -1999 Capital Plan and available to fund projects identified in the current Capital Plan.

2. Park Board Capital Budget

The Park Board has brought forward a request for its 2000 Capital Budget at $11,480,666. Funding for this capital budget is provided from plebiscite authority ($10,890,666) and from the capital from revenue ($590,000). Approval of Recommendation C will provide the necessary funding for projects brought forward by the Park Board. It is noted that, in addition to funding provided through the Capital Plan, the Park Board funding partners are providing $2,795,000 to enhance the Park Board capital expenditure program.

Details of the Park Board Capital Budget were approved by the Park Board on February 22, 2000 and are included in the accompanying report from the General Manager of Parks and Recreation.

Operating costs associated with the 2000 Park Board Capital Budget will begin to impact the Operating Budget in 2001.

3. Public Safety

The Capital Budget includes funding of $2,017,000 for Fire and Police capital programs.

The plan includes funds for the replacement of the existing two-bay Firehall #13 ( 790 East 24th Avenue) which is 87 years old. This year’s capital budget includes funding for the design work and the preparation of detailed cost estimates for the firehall at a cost of $410,000. Funding for construction totalling $2,340,000 will be requested in the 2001 - 2002 capital budgets.

Following the transfer of the dispatch function from Fire and Rescue Service to E-Comm, the administration area is scheduled to undergo renovations to incorporate staff who are currently housed in a temporary trailer. The 2000 capital budget includes $300,000 for the renovation in the administration area and removal of the temporary facility.

The budget also includes $450,000 to relocate the canine unit of the Police Department from the Cambie Yards at West 1st Avenue, to the new BNR Works Yard at the east end of Terminal Avenue.

Council has previously allocated $857,000 of borrowing authority carried forward from the 1994-1996 Capital Plan to fund the outfitting of the new CIS building for the Police Department.

4. Community Services Initiatives

The 2000 - 2002 Capital Plan includes funding of $9,850,000 for projects related to social and cultural facilities owned by the City and by others. These include: upgrading or relocation of social service, daycare and cultural facilities; rehabilitation of facilities; and continuation of the Public Art program. All of these projects are funded from Capital from Revenue.

The 2000 Capital Budget includes funding of $725,000 allocated to the following projects/programs:

… Upgrading City-owned social & cultural facilities $325,000
… Capital Grants to privately owned social & cultural facilities 150,000
… Public Art Program 250,000

Approval of expenditures under these allocations will be the subject of future reports to Council.

In addition, Council has previously approved the allocation of $315,000 from the Capital Plan allocation for the Downtown Eastside to support two economic development initiatives the Tenant Improvement Assistance Program and the Lease Subsidy Program.

5. Other

The Other Category of the Capital Plan includes allocations for maintenance of the City Hall Precinct (City Hall, East Wing and West Annex buildings), for conceptual and design work related to a replacement branch library and a contribution to the Affordable Housing Fund. All of these projects are funded from Capital from Revenue.

The 2000 Capital Budget includes allocation of $3,319,600 as follows:

… City Hall Precinct Facilities $820,000
… Major Civic Building Maintenance Program $1,772,600
… Roof Replacement Program $377,000
… Civic Theatres, Safety and Security $350,000

Funding for major building maintenance and upgrading in the City Hall precinct includes projects identified as part of the comprehensive facilities strategic plan. The available funding will provide for ongoing capital maintenance of major building systems and compliance with WCB standards at the City Hall precinct and at other civic facilities and for renovation/upgrading work necessary as a result of service improvements or reorganizations.

The capital budget includes $350,000 to address a variety of safety and security issues at Civic Theatres facilities.

CONCLUSION

The 2000 Capital Budget represents the first annual budget arising from the 2000 - 2002 Capital Plan and provides for the allocation of funding included in that Plan to individual projects and programs.

* * * * *

Link to Appendix 1

Appendix 2 on file in the City Clerk's Office

cs000518.htm

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