ADMINISTRATIVE REPORT

Date: April 18, 2000
Author/Local: Mark Vulliamy /257-8461
RTS NO. 01449

CC File No. 1602

CS&B: May 18, 2000

TO:	Standing Committee on City Services and Budgets
FROM:	General Manager of Parks and Recreation
SUBJECT:	2000 Park Board Capital Budget

RECOMMENDATION

A. THAT Council approve the Park Board Capital budget of $11,480,666 for the year 2000 as described in Appendix A to this Report;

B. THAT Council approve up to $2,795,000 of additional Capital expenditure by the Park Board, funded by contributions from senior levels of government and community organizations, as outlined in this report.

POLICY

The Park Board Capital Budget requires Council approval.

BACKGROUND

The 2000 - 2002 Park Board Capital Plan of $31,500,000 was submitted to the voters in the November 1999 Civic Election. The electorate approved borrowing of $26.46 million, with the balance to be derived from operating revenue.

Additional Capital funding for the year 2000 has been secured by the Board from senior levels of government and community organizations, as itemized below.

This report outlines a proposed strategy for Capital Plan implementation over the three year cycle, and seeks approval for the 2000 capital budget.

DISCUSSION

Appendix ‘A’ outlines the net funding assigned to each Capital Plan Program area (after deductions for debenture and overhead costs) and, within each Program area, (1) the capital development and major maintenance projects proposed for 2000 and (2) tentative allocations for 2001 and 2002.

Also identified in Appendix A are the debenture and overhead costs charged to the Capital Plan. `Debenture Costs' represent the brokerage fees and related charges that the City incurs in the process of borrowing Capital funds, which are passed on to Departments and Boards in proportion to their Capital Plan share. The `Overhead' deduction is made by the Park Board to cover costs associated with Capital Plan administration, including purchasing, accounting, budgeting and clerical support functions. The deducted amount is calculated based on expenses incurred in previous Capital Plan cycles.

Debenture costs are $425,000 and Overhead costs will be $1,200,000 over the three year period. The combined costs amount to a 5.2% charge against the total $31.5 million of the Plan.

The proposed distribution of funds over the three year cycle has been guided by the following considerations:

… The urgency to complete the project, in terms of cost containment or service demand;
… The time required to secure matching funds;
… The need to balance project demands against staff availability; and
… The need to distribute funds more or less evenly over the three year period.

A draft version of this Capital Budget report was circulated to stakeholder groups and partners organizations of the Park Board, and a public information session on the capital budget was held prior to consideration by the Board. Minor budgeting adjustments were made based upon feedback received.

The Board then approved this budget at its regular meeting of April 17, 2000.

The Capital Budget for 2000 has also been enhanced by contributions and commitments totaling $2,795,000 from external sources, to be allocated towards the following projects:

Project	Contributor	Amount
1. Stanley Park Salmon Stream	Vancouver Aquarium Association	$1,500,000
2. Hastings Park Restoration: Phase 3A	Community donations	$500,000
3. Thunderbird Community Centre 2nd Floor Expansion	Thunderbird Neighbourhood Association	$537,000
4. False Creek Community Centre renovations	False Creek Community Association and Canada Mortgage and Housing Corporation (Granville Island Trust)	$258,000
	Total:	$2,795,000

SUMMARY

Council is requested to approve the Capital budget for 2000 as outlined in this Report and its Appendix.

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Link to Appendix A

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