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Budget Staff Presentation

Public Delegations

Council Approval

Non-tax supported • Ontario Building Code

Administration • Court Services • Water Services • Wastewater Services • Stormwater Services

Tonight Tonight November 3

Local Boards and Shared Services

November 16 November 30 December 7

Tax supported

• Capital November 3 November 3 December 7

• Operating November 9 November 30 December 7

- Expansions November 16 November 30 December 7

- Reductions November 16 November 30 December 7

3

Budget timeline

• Program overviews

• Highlights and assumptions

• Budget overview – operating and capital

• Integrated capital planning – Challenge and opportunity

– Capital budget key principals

• Ontario Building Code Administration

• Court Services

• Water Services

• Wastewater Services

• Stormwater Services

• Capital programs of work

Agenda

4

• Ontario Building Code is responsible for the

administration and enforcement of the OBC

• Court Services provides mandatory court services

• Water Services ensures a safe, secure and sustainable

water supply to the community

• Wastewater Services delivers reliable sanitary services

and high quality effluent

• Stormwater Services provides flood prevention and

protects the City’s water resources

Program overviews

5

• 2017 builds on previous years’ work

• No transfer from property tax (fee and rate based budgets)

• Budgets support Council-approved infrastructure planning

studies, financial plans, and corporate guidelines

• Maintain existing infrastructure

• Consider affordability

• Address the infrastructure gap (achieve sustainability)

Highlights and assumptions

6

Budget overview - operating

7

2016 2017

Ontario Building Code Administration Gross expenditure

$3,070,000 $3,390,300

Court Services Gross expenditure

$3,721,800

$3,901,750

Water Services Gross expenditure

$28,644,042

$30,450,665

Wastewater Services Gross expenditure

$29,799,028

$30,946,448

Stormwater Services Gross expenditure

$2,116,600

$4,219,000

Budget overview – capital

8

2016 2017 2017-2025

Ontario Building Code Administration

$35,000 $26,200 $42,800

Court Services $27,800 $50,000 $454,300

Water Services $15,137,300 $18,096,000 $162,055,100

Wastewater Services $12,790,500 $8,298,900 $129,530,600

Stormwater Services $3,860,000 $4,151,100 $36,543,900

Recommendation

9

That Report No. CS-2016-68 titled 2017 Non-Tax Supported Operating and Capital Budgets be referred to the November 3, 2016 Council Budget meeting.

Tab 1

10

Ontario Building Code Administration

• No increase in permit revenue for 2017

• Increase in staff support costs for OBC work

– Corresponding reduction in tax-supported budget

• Interdepartmental support reduction

• Reserve fund transfer to balance budget

Key changes in 2017

11

Tab 1, page 10

2017 recommended budget: operating

12

Item 2015 actuals 2016

approved budget

Total 2017 recommended

budget

Yr/Yr change

Yr/Yr change

(%)

Permit Revenue ($3,607,816) ($3,070,000) ($3,000,000) ($70,000) -2.3

Total Revenue ($3,607,816) ($3,070,000) ($3,390,300) ($320,300) 10.4

Transfers to Reserves

$783,431 $270 $0 ($270) 100

Total Expenditures $3,607,816 $3,070,000 $3,390,300 $320,300 10.4

Net budget $0 $0 $0 0 0.0

Full-time equivalents

26.3 26.3 26.3 0

Tab 1, page 10

2017-20 recommended budget: operating

13

Tab 1, page 12

Item Total 2017

recommended budget

2018 projected

2019 projected

2020 projected

Permit Revenue ($3,000,000) ($3,120,000) ($3,244,800) ($3,374,600)

Total Revenue ($3,390,300) ($3,469,630) ($3,551,300) ($3,619,700)

Transfers to Reserves

$0 $0 $0 $0

Total Expenditures

$3,390,300 $3,469,630 $3,551,300 $3,619,700

Net budget $0 $0 $0 $0


26.3 26.3 26.3 26.3

The forecasted draw on the reserve fund is not sustainable. A strategy will be developed to mitigate this systemic negative variance during the preparation of the 2016 reserve fund report.

Permit fees, operating costs & reserve activities ($000's)

14

Tab 1, page 15

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2012 2013 2014 2015 2016

Projected

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

Permit Fee Revenues Operating Costs Reserve Fund

Total

project cost

Capital

reserves

Strategic Plan - IT $69,000 ($69,000)

Total capital budget $69,000 ($69,000)

2017-2026 capital budget

15

The figure represents the 10-year capital costs to be funded from OBC.

Tab 1, page 13

OUR SERVICE

• Implement the electronic permit drawing project

OUR RESOURCES

• Recommend building bylaw amendments

• Review full year results of radon testing program

• Implement building code amendments

2017 initiatives

16

Tab 1, page 9

Court Services

Tab 2

17

Funding models

18

POA

Gross revenue - expenses

=Net share to County

=Net share to City (to non-tax budget reserves)

Parking Ticket Administration

Gross revenue - expenses

=Total net to City (to tax-supported budget)

• Increase in POA charge volumes

• Increase in parking charge volumes

• Increase in payments through collection agencies and

online payments

2016 trends informing 2017 budget

19


20

Tab 2, page 19

Item 2015 actuals 2016

approved budget


budget

Yr/Yr change

($)

Yr/Yr change

(%)

Revenues ($4,009,408) ($3,721,800) ($3,901,750) (179,950) 4.8 Expenditures $3,420,430 $3,709,795 $3,833,715 123,920 3.3 Net budget before reserve financing ($588,978) ($12,005) ($68,035) (56,030) 466.7 Reserve financing $588,978 $12,005 $68,035 56,030 466.7 Net budget after reserve financing

$0

$0

$0

0

0.0


15.8 14.0

15.0

1.0 7.1

2017-20 budgets: operating

21

Tab 2, page 23

Item

2017

requested

budget

2018

projected

budget

2019

projected

budget

2020

projected

budget

Revenues ($3,901,750) ($3,955,942) ($4,011,218) ($4,067,599)

Expenditures $3,833,715 $3,897,533 $3,945,602 $3,968,320

Net budget before reserve financing ($68,035) ($58,409) ($65,616) ($99,279)

Reserve financing $68,035 $58,409 $65,617 $99,279

Net budget after reserve financing $0 $0 $0 $0


15.0

15.0 15.0

15.0

Title/Position: POA Clerk

Type: Growth

Budget impact: $63,800

Overview

• Address additional payment processing and customer service requirements related to: – Collections

– Online payments

– Increasing charge volumes

Operating expansion

22

Tab 2, page 22

Funding models

23

POA Revenue above 2016 budget

Gross revenue – expenses ($2,809,600) – $2,040,245

=Net share to County ($301,320)

($15,220)

=Net share to City ($468,035) (to non-tax budget reserves)

($56,030)

Parking Ticket Administration

Gross revenue – expenses ($1,070,300) – $214,650

=Total net to City ($855,650) (to tax-supported budget)

($41,570)

Of the net share to the City ($468,035):

• $400,000 to capital debt service costs

• $ 68,035 to POA Contingency Reserve

POA net revenue distribution

24


25

Tab 2, page 24

Total

project cost

County

contributions

Capital

reserves

Court facilities $235,900 $117,950 $117,950

Court administration $268,400 $134,200 $134,200

Total capital budget $504,300 $252,150 $252,150

Reserves and reserve funds

26

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Contingency CapitalTab 2, page 27-28

OUR SERVICES

• Digital case management (e.g. electronic case disclosure)

• Explore remote language interpretation for trial courts

OUR RESOURCES

• Expand data upload capabilities for e-ticket solutions

• Investigate options to upgrade Parking Ticket operating

system

2017 initiatives

27

Tab 2, page 18

Water Services

Tab X

28

“The Safe Drinking Water Act, 2002 includes a statutory standard of care for

individuals who have decision-making authority over municipal drinking water systems

or who oversee the operating authority of the system. This can extend to municipal

councilors. There are legal consequences for not acting as required by the

standard of care, including possible fines or imprisonment.

It is important that members of municipal council and municipal officials with decision-

making authority over the drinking water system and oversight responsibilities over the

accredited operating authority understand that they are personally liable, even if the

drinking water system is operated by a corporate entity other than the municipality.”

Excerpted from

Taking Care of Your Drinking Water:

A Guide for Members of Municipal Councils Province of Ontario (2014)

Statutory standard of care

29

Tab 4, page 35

• Forecasted 0.8 per cent decrease in 2017 billable

consumption:

– Efficient building for residential growth

– Conservation program gains = lower customer use

– 2016 was a leap year

• Capital financing, compensation and expansions

• Increases to departmental cross charges

Pressures on water and wastewater rates

30

• Overall electricity cost increase of 16 per cent

• Property tax adjustments and new servicing charges

• A mandatory financial plan that requires sustainable funding

• Need to close the sustainable infrastructure funding gap

– Capital reserves not sufficient to fund accumulated

depreciation

Pressures on water and wastewater rates

31

• Consistent with sustainability targets of Long-Range

Financial Plan

• Ensure continued compliance with provincial regulations

• Ensure adequate lifecycle funding for system infrastructure

renewal

• Predictable and affordable - eliminate rate spikes

• Maintain cost competitiveness

• Encourage efficient use by allowing customers to pay based

on usage

Rate setting objectives

32

Demand forecasting methodology

33

2017 billable revenue forecast development

Accuracy assessment and revenue stream adjustment

Revenue stream growth evaluation and forecast

2016 YTD revenue analysis and year-end forecasting

Getting the numbers right

• Develop detailed water and wastewater demand forecasts

• Update and modify budget expense lines to meet spending

targets

• Develop, review, and prioritize expansion packages

• Update capital budget and forecast

Budget development

34

Modeling required rates

• Match rate model to expense total and required revenue

(both volumetric and basic rates)

• Model required reserve contributions

• Prepare multi-year budget forecasts

• Benchmark against Council-approved Long-range Financial Plan

Budget development

35

• Customers control and reduce bills

• Decreases and defers community capital investments

• Reduces water and wastewater pumping, treatment, chemical,

and maintenance costs (lowers rate pressures)

• Cheapest source of new capacity for service reliability and

future growth

• Leaves groundwater in the aquifer for future use and

environmental benefit

• Mandated by the province as part of our Permits To Take Water

Benefits of efficient water use

36

Residential Consumption Per Capita: city of Guelph average single family household

37

207.24

201.06

194.39 194.79

183.12

180.52

183.93

165.00

170.00

175.00

180.00

185.00

190.00

195.00

200.00

205.00

210.00

2009 2010 2011 2012 2013 2014 2015

Wate

r U

se P

er

Household

(cubic

metr

es/y

ear)

Note: peak in 2015 due to frozen water pipes

*Average annual volume of water consumed by a three-person household in Guelph

** Average residential annual bill with two per cent applied decrease observed in residential sector (2011 to 2015 average) – equaling 176 cubic meters/year housed consumption in 2017 - 2017 average residential annual bill is prorated for 365 days for comparison to the 2016 bill

Rate change and forecast

38

Tab 3, page 29

2016 2017 Change

Water volume charge $/cubic metre $1.59 $1.67 $0.08

Water basic charge $/day $0.26 $0.26 $0.00

Wastewater volume charge $/cubic

metre $1.73 $1.80 $0.07

Wastewater basic charge $/day $0.32 $0.32 $0.00

Average residential annual bill

(180 cubic metres*) $810 $836 $26 or 3.3%

Predicted actual average residential

annual bill** $810 $824 $14 or 1.7%

Water/Wastewater rate and budget forecasts

39

Tab 3, page 29

2017

forecasted

2017

recommended

Long-range

Financial

Plan

Water

Budget per cent increase 4.6% 6.3% 5.0%

Volume charge per cubic metre $1.69 $1.67

Wastewater

Budget per cent increase 4.6% 5.1% 5.0%

Volume charge per cubic metre $1.84 $1.80

Comparison of residential water/wastewater total volumetric and service charges (2016 rates)

40

Tab 3, page 30

Comparison of Average Household Water/ Wastewater Bills by Municipality (2016 rates)

41

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

Green bars represent municipalities using groundwater Purple bar represents the City of Guelph which also uses groundwater Blue bars represent municipalities using surface water or a mix of surface and groundwater

Tab 3, page 31

Revenue

• Billable consumption: forecast 0.8 per cent decrease

Operating budget

• Compensation increase of $241,100 or 3.7 per cent

• Purchased goods increase of $401,920 or 14.0 per cent including

• Increase in utility and taxes costs ($350,000)

• Increase in operating cost ($51,900)

2017 major operating budget changes

42

Tab 4, page 39

Operating budget (continued)

• Purchased services increase of $127,650 or 4.3 per cent including

• Increase in rental equipment and operators ($50,500 or 23.4%)

• Other transfers increase of $14,673 (GRCA Levy)


43

Tab 4, page 39

Operating budget (continued)

• Internal charges increase of $241,480 or 8.1 per cent

(Fleet, IT, budget realignment)

• Reduction in Contingency Fund of $440,000

Net expenditure increase of 3.6 per cent

• Not including expansions and capital financing


44

Tab 4, page 39

Operating Budget

• Capital financing increase by $770,000 (6.3%) – growth and non-

growth

Overall operating expenditures increase of $1,806,623 (6.3%)


45

Tab 4, page 39


46

Tab 4, page 38

Item 2015 actuals 2016 approved

budget


budget

Yr/Yr change

($)

Yr/Yr change

(%)

Revenues ($28,122,035) ($28,644,042) ($30,450,655) ($1,806,623) 6.3 Expenditures $28,122,035 $28,644,042 $30,450,655 $1,806,623 6.3 Net budget

$0

$0

$0

$0

0.0

Full-time equivalents 57.0 64.0 65.0 1.0

Assumptions: Water Services Forecast

• Reflective of the approved Long-range Financial Plan (LRFP)

2018 & 2019

• Three per cent increase to compensation

• Two per cent net increase on purchased goods and purchased services

– this includes a five per cent increase to utilities

• No increase to training and consulting costs

Three-year operating budget forecast and drivers

47

2020

• Five per cent increase to administration

• Three per cent increase to supply, distribution and metering

Capital contributions

• In accordance with LRFP to meet reserve fund targets

• Projected FTE requests for Water Services based on regulatory driven program expansions for additional supply and distribution operators and related program funding


48


49

Tab 4, page 46

Item

2017

recommended

budget

2018

projected

2019

projected

2020

projected

Revenues ($30,450,655) ($31,997,700) ($33,511,400) ($35,129,698)

Expenditures $30,450,655 $31,997,700 $33,511,400 $35,129,698

Net budget

$0 $0 $0 $0

Full-time equivalents 65.0 65.0 65.0

65.0

Title/Position: Water Permit Monitoring Program

Type: Legislative

Budget impact: $395,600

Overview

• Permits to Take Water allow the City to use groundwater for its

municipal water supply

• Recent changes to permit monitoring requirements require

additional monitoring of the City’s well fields to ensure

sustainability and water quality

• No FTEs associated with expansion

Operating expansion

50

Tab 4, page 40

Title/Position: Source Water Protection Program Coordinator Type: Growth/Legislative

Budget impact: $0

Overview

• Coordinate building permit applications, development plan applications and

Committee of Adjustment submissions

• Under Section 59 of the Clean Water Act, Section 59 notices must be issued

for all development applications and building permits that are subject to the

Source Protection Plan

Operating expansion

51

Tab 4, page 44

Title/Position: Corporate Analyst: non-tax Type: Growth/Financial Stability

Budget impact: $109,500*

Overview

• To implement added analytical rigor to improves the city’s financial

integrity and sustainability

• Increase Finance capacity to sign-off on all Council reports as per audit

recommendation

• Fully dedicated to non-tax-supported City services

(Water, Wastewater, Courts, OBC and Stormwater)

Operating expansion

52

Tab 4, page 42 *Note: Expansion costs to be split between non-tax-supported departments


53

Tab 4, page 48

Total

project cost

Development

Charges

Grants and

Subsidies

Capital

reserves

Growth $81,984,500 $60,794,200 $0.0 $21,190,300

Infrastructure

replacement $98,166,600 $7,318,000 $1,007,400 $89,841,200

Total capital

budget $180,151,100 $68,112,200 $1,007,400 $111,031,500

2017-26 Reserves and reserve funds projected balances

54

Tab 4, page 53

2017 Water and Wastewater financial indicators

55

Target

2017

predictions:

Water LRFP

Actuals

Water

2017

predictions:

Wastewater

LRFP

Actuals

Wastewater

Debt to total reserve ratio < 1:1 0.0:1 0.0:1 0.0:1 0.0:1

Operating reserves as a % of own

source revenue

8 - 10%

of

Revenues

8.0% 9.0% 8.0% 11.9%

Operating surplus ratio Positive Positive Positive Positive Positive

Asset consumption ratio 35% n/a 38.4% n/a 46.4%

Capital Reserves as a % of historical

asset value 2-3% 4.5% 8.9% 4.0% 8.6%

Capital Reserves as a % of asset

replacement value 2-3% 2.2% 2.2%

OUR SERVICE

• Initiate detailed cost of service study to evaluate true cost of water and wastewater services

OUR RESOURCES

• Complete treatment system upgrades at Burkes Well

• Construct Paisley-Clythe feeder main (third phase)

• Recoat and resurface Speedvale water tower

• Complete detailed engineering design for F.M. Woods Pumping Station

• Implement updated, Council-approved Water Efficiency Strategy

• Continue implementation of the Source Water Protection Plan

2017 initiatives

56

Tab 4, page 36

Wastewater Services

Tab 5

57

Wastewater treatment: process performance

58

$ increase/

decrease

% increase/

decrease

Compensation $85,140 1.7%

Purchased Goods $342,200 15%

offset by a decrease of

$123,600 (-6.4%) in small

tools and chemicals

Purchased services ($63,545) -1.7% Repairs and maintenance

Other transfers $18,775 2.1% GCRA Levy

Metering/billing/locates/

other staff chargebacks $328,050 10.4% Internal charges

Revenue

• Billable consumption: 0.8 per cent

Operating Budget


59 Tab 5, page 58

• No contingency reserve transfer

• No stabilization reserve transfer

• Net expenditure increase of 3.9 per cent

– not including expansions and capital financing

• Expansions: increase of $54,800 – due to shared Finance staffing position

• Capital financing: increase of $500,000 (3.9%) – growth and renewal

Overall operating expenditures increase of $1,147,420 (3.9%)


60

Tab 5, page 58


61

Tab 5, page 57

Item 2015 actuals 2016 approved

budget


budget

Yr/Yr change

Yr/Yr change

(%)

Revenues ($30,138,867) ($29,799,028) ($30,946,448) ($1,147,420) 3.9 Expenditures $30,138,867 $29,799,028 $30,946,448 $1,147,420 3.9 Net budget

$0

$0

$0

$0

0.0

Full-time equivalents 51.0 50.0 50.0

Assumptions

• Wastewater Services forecast

• Reflective of the approved Long-range Financial Plan (LRFP)

Capital contributions in accordance with LRFP to meet reserve fund targets


62

2018 2019 2020

Compensation 3.0% 3.0% 3.45%

Purchased goods 3.4% 3.5% 3.2%

Purchased services 1.35% 1.37% 3.6%


63

Tab 5, page 61

Total

project cost

Development

Charges Grants Developer

Capital

reserves

Growth $105,737,000 $884,200 $0 $819,100 $35,033,800

Infrastructure

replacement $32,092,500 $308,600 $768,600 $0 $31,015,400

Total capital

budget $137,829,500 $192,800 $768,600 $819,100 $66,049,200

OUR SERVICE

• Update Wastewater Treatment and Biosolids Management Master Plan

• Continue digester cleaning program

OUR RESOURCES

• Continue generator purchase and installation program

• Continue wastewater treatment plan re-rating process

• Start management and capital programs review

• Continue innovative anammox treatment process, a first in Canada

• Continue biosolids storage project

2017 initiatives

64

Tab 5, page 55

Stormwater Services

Tab 6

65

Program overview

66

• Purpose:

– to protect people and property from flooding

– to protect the City’s water resources

• Infrastructure is in need of upgrades and repairs

Program overview

67

• 2013-15: Sustainable Funding Study

• March 2016: Council approves transition of program funding from

property tax to a fee-based service

• September 2016: Council approves the policies, draft Fees or

Charges Bylaw, establishment of reserves, and billing agent

retainer

Coming up

• November 3, 2016: Stormwater rate approval ($4/month)

• January 2017: billing begins (fee on Guelph Hydro bill)

• 2017: assessment of potential credit program

Timeline

68

Funding via property taxes by sector

Funding via ERU fee model by sector

69

30%

52%

18%

ICI Residential: detached Residential: attached

Rate highlights

44%

34%

22%


• The ERU fee model provides a balance between fairness, equity and ease of administration

Funding via ERU fee model by sector

70

Rate highlights

44%

34%

22%


• The ERU fee model provides a balance between fairness, equity and ease of administration

47%

42%

11%


Impervious area by sector

• The 2016 tax-supported budget has been adjusted removing $1.9 million from the tax base

– The City will be obligated to pay stormwater fees for municipally owned

properties in the approximate amount of $200,000

• The 2016 non-tax-supported budget adjusted adding $2.1 million to form the base budget for Stormwater Services

71

2016-2017 budget adjustment

Sustainable Funding Strategy

72

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2017

2018

2019

2020

2021

An

nu

al

Bu

dg

et/

Reven

ue

Eq

uiv

ale

nt

Resid

en

tial

Un

it (

ER

U) M

on

thly

Rate

Interim to Sustainable - 5 years (Recommended option)

Stormwater fee comparison

73

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Ave

rage

An

nu

al C

ost

Guelph (recommended) Richmond Hill Aurora Waterloo St. Thomas Mississauga Kitchener London

Guelph sustainable at $76.20

Summary of rate and impact on average residential household

*Average impervious area of a residential property is 188 m2. 2017 rates will come into effect on January 1, 2017.

Stormwater rate change and forecast

74

Tab 6, page 70

2016 2017 2018 2019 2020

Average monthly residential

household stormwater

contribution

$2.36 $4.00 $4.60 $5.20 $5.80

Average residential annual

bill* $28.32 $48.00 $55.20 $62.40 $69.60


75

Tab 6, page 72

Item 2016 restated

budget


budget

Yr/Yr change

Yr/Yr change

(%)

Revenues ($2,116,600) ($4,219,000) ($2,102,400) 99.3 Expenditures $2,116,600 $4,219,000 $2,102,400 99.3 Net budget

$0

$0

$0

0.0


76

Tab 6, page 73

Item

2017

recommended

budget

2018

projected

2019

projected

2020

projected

Revenues ($4,219,000) ($4,819,000) ($5,419,000) ($6,024,900)

Expenditures $4,219,000 $4,819,000 $5,419,000 $6,024,900

Net budget

$0

$0 $0 $0


77

Tab 6, page 74

Total

project cost

Development

Charges

Grants and

Subsidies

Capital

reserves

Growth $860,000 $708,000 $0 $152,000

Infrastructure

replacement $39,835,000 $18,700 $1,496,500 $38,319,800

Total capital

budget $40,695,000 $726,700 $1,496,500 $38,471,800

Capital Planning and Programs of Work

78

Integrated capital planning

79

Challenge

• Review of non-tax-supported budget in isolation of

tax-supported budget

– Cutting projects in one budgets results in approved funding from the

second budget being unusable

– Leads to unspent capital

Opportunity

• Corporate asset management system highlights connection

between projects in a transparent manner

Challenge and opportunity

80

• Evidence-based – based on factual or estimated data, documented procedures and a

business case

• Collaboratively developed – based on consultation with multiple departments and front-line staff

• Prioritized – ensures the most critical projects are proposed at the right time

Capital budget key principals

81

2017-2026 reserves and reserve fund projected balances

82

$0

$20

$40

$60

$80

$100

$120

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Millio

ns

Water Services Capital Reserve

Current Sustainable + Backlog

2017-2026 reserves and reserve fund projected balances

83

$0

$20

$40

$60

$80

$100

$120

$140

$160

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Millio

ns

Wastewater Services Capital Reserve

Current Sustainable + Backlog

Program of work

Benefit Risk 2017 non-tax investment

page

Downtown Infrastructure Renewal

• maintain and support the redevelopment of properties in the area

• defers escalating costs • stall ongoing

development activities and future interests

$4,126,000 84

Full Corridor Reconstruction - Growth

• ensure that levels of service are being maintained

• risks of flooding or backups

• likelihood of underground infrastructure failure

$2,290,000 89

Full Corridor Reconstruction - Renewal

• ensure that levels of service are being maintained


$4,612,000 95

Stormwater Collection and Storage & Filtration

• protect streams and rivers

• mitigate flooding • comply with

MOECC regulations

• harm to property and human life

• non‐compliance with the MOECC which can result in charges and/or fines

$7,265,000 101

Programs of work

84

Tab 7

Program of work

Benefit Risk 2017 non-tax investment

page

Wastewater Collection

• satisfy capacity requirement of the system


$1,150,000 104

Wastewater Plant & Equipment

• long-term

reliability of

assets and

capacity

• unexpected downtime

• Replacement parts are not

readily available

$1,055,000 107

Water Distribution Network

• proactively minimizing risks and maintain levels of service

• interruptions in service delivery

• reduction in water quality • additional maintenance

costs and time • regulatory non-compliance

$0 110

Water Plant & Equipment

• provide safe and reliable source of water

• interruptions in service delivery

• reduction in water quality • regulatory non-compliance

$12,307,000 113

Programs of work

85

Tab 7

Total 2017 investment: $6,598,000 Non-tax 2017 investment: $4,126,000

Overview • linear infrastructure downtown is some of the oldest in Guelph

• continued need to address renewal to maintain and support the

redevelopment of properties in the area

Risk

• delaying the investment simply defers escalating costs and has the

potential to stall ongoing development activities and future interests


86

Tab 7, page 84


87

2017 2018 2019 2020-2026 Total

Roads &

Bridges $2,472,000 $3,701,000 $588,000 $24,619,000 $31,380,000

Stormwater $319,000 $2,058,000 $25,000 $948,000 $3,350,000

Wastewater $2,121,000 $1,047,000 $45,000 $1,235,000 $4,448,000

Water $1,686,000 $573,000 $50,000 $1,483,000 $3,792,000

Total $6,598,000 $7,379,000 $708,000 $28,285,000 $42,970,000

Financial investment


88

Budget amount Funding source

Tax-supported $2,472,000 Tax

Grants

$1,165,000

$1,307,000

Non-tax-supported $4,126,000 Rate

DC

$4,067,000

$59,000

Total $6,598,000 $6,598,000

Operating impacts There are no known operating impacts at this time.

2017 Budget approval and funding


Overview • To optimize the project list to ensure that levels of service are being

maintained

Risk

• Insufficient infrastructure capacity to support growth

• Increased risks of flooding or backups (in the case of wastewater and stormwater)

• Increased likelihood of underground infrastructure failure – contamination of the drinking water supply

– water service interruptions

– sink holes, vehicle damage (due to pot holes), property damage, sewer backups, or basement flooding

Full Corridor Reconstruction, Growth

89

Tab 7, page 89


90

2017 2018 2019 2020-2026 Total

Roads $1,400,000 $4,998,000 $3,988,000 $65,376,000 $75,762,000

Stormwater $814,000 $740,000 $11,429,000 $12,983,000

Water $756,000 $1,491,000 $1,422,000 $17,553,000 $20,222,000

Wastewater $1,534,000 $1,159,000 $1,639,000 $16,882,000 $21,214,000

Total $3,690,000 $8,462,000 $7,789,000 $111,241,000 $131,182,000



91


Tax-supported $1,400,000

Grant

Tax

DC

$826,000

$317,000

$257,000


DC

$1,696,000

$594,000

Total $3,690,000 $3,690,000




Overview • To optimize the project list to ensure that levels of service are being

maintained

Risk

• Insufficient infrastructure capacity to support growth

• Increased likelihood of underground infrastructure failure – contamination of the drinking water supply

– water service interruptions

– sink holes, vehicle damage (due to pot holes), property damage, sewer backups, or basement flooding

Full Corridor Reconstruction, Renewal

92

Tab 7, page 95


93

2017 2018 2019 2020-2026 Total

Roads $2,398,000 $334,000 $2,936,000 $14,620,000 $20,288,000

Stormwater $811,000 $322,000 $492,000 $3,686,000 $5,311,000

Water $2,207,000 $961,000 $6,064,000 $6,059,000 $15,291,000

Wastewater $1,594,000 $648,000 $542,000 $3,076,000 $5,860,000

Total $7,010,000 $2,265,000 $10,034,000 $27,441,000 $46,750,000

Financial investment (‘000s)


94


Tax-supported $2,398,000

Tax

Grants

CAR Reserve

$1,665,000

$550,000

$183,000

Non-tax-supported $4,612,000

Rate

Grants

CAR Reserve

$2,341,000

$2,147,000

$124,000

Total $7,010,000 $7,010,000

2017 Budget approval and funding (‘000s)



Overview • To protect the health of our streams and rivers, mitigating flooding in

extreme weather

• To comply with regulations set by the Ministry of the Environment and

Climate Change (MOECC)

Risk

• assets deteriorating to a state of disrepair

• ceasing to meet the performance expected

• potentially causing harm to property and human life

• non‐compliance with the MOECC which can result in charges and/or fines


95

Tab 7, page 101


96

2017 2018 2019 2020-2026 Total

Collection $375,000 $580,000 $955,000 $3,755,000 $5,665,000

Storage &

Filtration

$6,890,000 $500,000 $1,080,000 $3,810,000 $12,280,000

Total $7,265,000 $1,080,000 $2,035,000 $7,565,000 $17,945,000



97


Tax-supported $0 Tax

Own revenue

$0

$0

Non-tax-supported $7,265,000

Rate

Grants

CAR reserve

DC

$633,000

$4,875,000

$1,625,000

$132,000

Total $7,265,000 $7,265,000




Overview

• To satisfy capacity requirement of the system by:

– Optimizing existing systems

– increasing capacities of existing systems

– reducing water loss

– increasing water conservation

– protecting the natural environment

– enhancing asset management


98

Tab 7, page 104


99

2017 2018 2019 2020-2026 Total

Collection

(Growth)

$400,000 $800,000 $1,750,000 $8,250,000 $11,200,000

Collection

(Renewal)

$750,000 $550,000 $570,000 $5,246,000 $7,116,000

Total $1,150,000 $1,350,000 $2,320,000 $13,496,000 $18,316,000



100



Own revenue

$0

$0


DC

$950,000

$200,000

Total $1,150,000 $1,150,000




Overview • To provide long-term reliability of assets and capacity

Risk

• Unexpected downtime

• Replacement parts are not readily available


101

Tab 7, page 107


102

2017 2018 2019 2020-2026 Total

Treatment & Storage,

growth

$851,000 $7,350,000 $3,997,000 $60,506,000 $72,704,000

Treatment & Storage,

renewal

$204,000 $804,000 $804,000 $6,870,000 $8,886,000

Total $1,055,000 $8,154,000 $4,801,000 $67,580,000 $81,590,000



103



Own revenue

$0

$0


DC

$438,000

$617,000

Total $1,055,000 $1,055,000



Total 2017 investment: $0 Non-tax 2017 investment: $0

Overview • Proactively minimizing risks and maintaining levels of service through

renewal, capacity enhancements, and improving security of supply to the

water distribution network

Risk

• Interruptions in service delivery, reduction in water quality, additional

maintenance costs and time, and potential regulatory non-compliance

with the Safe Drinking Water Act


104

Tab 7, page 110


105

2017 2018 2019 2020-2026 Total

Distribution

network, growth $0 $100,000 $184,000 $12,553,000 $12,837,000

Distribution

network, renewal $0 $0 $1,732,000 $6,177,000 $7,909,000

Total $0 $100,000 $1,916,000 $18,730,000 $20,746,000



106



Own revenue $0

Non-tax-supported $0 Rate

DC $0

Total $0 $0




Overview

• To proactively add additional supply

• To renew existing systems

Risk

• interruptions in service delivery; reduction in water quality

• additional maintenance costs and time; insufficient servicing capacity

• potential regulatory non-compliance


107

Tab 7, page 113


108

2017 2018 2019 2020-2026 Total

Supply, Treatment

& Protection (Growth)

$1,930,000 $15,926,000 $6,126,000 $43,884,000 $70,385,000

Supply, Treatment

& Protection (Renewal)

$7,711,000 $12,665,000 $6,305,000 $24,958,000 $49,819,000

Conservation &

Efficiency

$2,666,000 $586,000 $571,000 $4,134,000 $7,257,000

Total $12,307,000 $29,177,000 $13,002,000 $72,976,000 $127,461,000



109



Own revenue

$0

$0


DC

$7,831,000

$4,476,000

Total $12,307,000 $12,307,000

Department Item Year Cost Cost type

Water Services Annual

Operating

(Ongoing)

2018 $94,000 New Maintenance Staff

Salary/Benefits – Burkes

Water Services Annual

Operating

(Ongoing)

2018 $67,000 Operational Costs

(Energy) for New

Treatment System -

Burkes

Operating Impacts


Recommendations

110

That Report No. CS-2016-68 titled 2017 Non-Tax Supported Operating and Capital Budgets be referred to the November 3, 2016 Council Budget meeting.

2016 2017 Change

Water volume charge $/cubic metre $1.59 $1.67 $0.08

Water basic charge $/day $0.26 $0.26 $0.00

Wastewater volume charge $/cubic

metre $1.73 $1.80 $0.07

Wastewater basic charge $/day $0.32 $0.32 $0.00

Stormwater service fee - $/month $2.36 $4.00 $1.64

2017 Water, Wastewater and Stormwater Rates and Fees

111

112

http://guelph.ca/budget

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