2018-2022 Financial Plan

FINANCIAL PLAN OVERVIEW

Infrastructure Sustainability Beginning in 2008, Council directed an annual tax increase of 1% to go toward infrastructure sustainability. This helps with major rehabilitation and replacement of the City’s assets which currently have a replacement value estimated in excess of $1.6 billion. For the years 2018 through 2022, the amount of the increase is 0.70%. The table below illustrates the inflows generated from general taxation and how it has been allocated. Inflows from the Core Reserve are allocated to maintaining those facilities related to the Town Centre project. If we look only at the roads component of our infrastructure, the historic annual amount spent on repaving roads is a fraction of what is required to maintain their condition. Over the past number of years we have been able to increase the annual amount dedicated to road maintenance and, as a result, we are seeing positive results in the condition of our roads, though further funding is needed to close the gap between current and recommended funding levels. This funding gap results in deferred maintenance which translates into larger future expenditures to resurface or perhaps even reconstruct roads. As we are several years into this funding model, the amounts dedicated to infrastructure are making an impact; however, we are still a very long way away from dedicating the estimated $30 million needed each year to fund the replacement of our infrastructure. Depending on the scope of projects required, one year’s allocation may not meet the funding requirements. In these cases, funding may be held over until enough has accumulated to allow the works to proceed, or borrowing may be considered. The charts highlight the impact that the property tax increases have had on the infrastructure deficit.

Infrastructure Sustainability Allocation of Funding

$ in thousands

2018

2019

2020

2021

2022

Inflows Property Taxes Prior Year

4,159

4,159

4,159

4,159

4,159

Property Tax Increase

545

1,121

1,728

2,370

3,048

Gaming Funds

550

550

550

550

550

Town Centre Incentive

584

584

584

584

584

Total Inflows

5,839

6,414

7,022

7,664

8,341

Allocations Building Infrastructure Planned

1,090

1,140

1,215

1,290

1,365

Fire Dept - Equipment Replacement

325

375

450

525

600

Highways ISR Capital Planned

3,474

3,828

4,170

4,539

4,944

Drainage Capital Planned

875

990

1,100

1,215

1,330

Major Equipment/Systems Reserve

75

81

87

94

102

Total Allocations

5,839

6,414

7,022

7,664

8,341

Estimated Ending Balance

-

-

-

-

-

We are making progress on the path to bridging our infrastructure deficit.

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