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City of Winnipeg 2020 Infrastructure Plan

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City of Winnipeg 2020 Infrastructure Plan City of Winnipeg 2020 Infrastructure Plan December 2019 Vision To be a vibrant and healthy city which places its highest priority in quality of life for all its citizens. Corporate Mission Working together to achieve affordable, responsive and innovative public service. Table of contents Introduction ............................................................. 4 Organizational Context • City Asset Management Plan ........................................... 5 • State of the Infrastructure Report ....................................... 6 • Unfunded Major Capital Projects Report ................................. 6 • Multi-Year Budget Process ............................................. 6 Investment Planning & Prioritization • Investment Planning Framework ........................................ 7 • Investment Prioritization ............................................... 7 • Weighted Benefit Criteria ............................................... 8 • Service Usage and Importance ......................................... 9 • Service Impact ....................................................... 9 • Cost Benefit Points Ratio & Ranking .................................... 10 • Potential Impact of Federal Infrastructure Funding Program .............. 10 Infrastructure Plan • Scope & Purpose .................................................... 11 • Infrastructure Plan Prioritized Investment Needs ........................ 12 • Summary ........................................................... 16 • Detailed Project Listing ............................................... 18 Information & Photo Credits ............................................. 38 Introduction The 2020 Infrastructure Plan is the first document of its Departments will use the Infrastructure Plan on an kind for the City of Winnipeg and builds on the informa- annual basis to guide their investment planning efforts tion outlined in the 2018 City Asset Management Plan, based on aligned capital priorities and budget availabil- 2018 State of the Infrastructure Report, and Unfunded ity. The Infrastructure Plan is meant to inform the capital Major Capital Projects report. planning process and ensure alignment with long-term City objectives as set out in OurWinnipeg, Council priori- Having additional insight and a broad overview of the ties and departmental master/strategic plans. City’s infrastructure needs and financial reality, the City Infrastructure Plan is intended to be a blueprint for The first version of the Infrastructure Plan encompasses maintaining sustainable and affordable service delivery all City services and applies to all funded and unfunded for residents by incorporating the information from the capital projects with a cost of over $5 million. This criteria Plan into the City’s investment planning cycle and multi- applies to 45 projects with a combined total cost of year budget process on an annual basis. $5.8 billion, capturing approximately 50 percent of the City’s total capital needs from 2020-2029. The Infrastructure Plan is not a capital budget. The Infra- structure Plan captures the City’s 10-year investment The Infrastructure Plan presents a prioritized listing that strategy, which outlines capital priorities and the funding represents the most value to the City based on the cost needs to support the development of a multi-year capital benefit points ratio, which factors in the overall benefits budget. The Plan enhances the decision-making process of a capital project with its financial impact to the City through continuous monitoring of the City’s infrastruc- in order to capture the true value of the proposed ture deficit, debt capacity, and financing sources. investment. It is anticipated that future iterations of the Infrastructure Plan will include all projects and programs representing the total capital needs over a 10-year period. 4 City of Winnipeg | 2020 Infrastructure Plan Organizational Context The 2020 Infrastructure Plan presents a 10-year capital REPLACEMENT VALUE OF ASSETS investment outlook that utilizes information presented in the preceding City Asset Management Plan, State of the Infrastructure Report and Unfunded Major Capital Projects report. These documents have provided a 12% city wide view of asset information and investment needs the City of Winnipeg will need to address in order to maintain service delivery for residents. Using Total the Infrastructure Plan to support the development $35 Billion of a long-term investment strategy will allow for more informed decision-making as the City transitions into a multi-year budgeting process for the 2020 budget year. CITY ASSET MANAGEMENT PLAN 88% The City must balance a multitude of competing spending priorities with limited resources. As the city’s population continues to grow at historically high rates, Roads, Bridges, Water, Sewer & Land Drainage the need to make sustainable, well-timed infrastructure investments is essential to ensure the City continues to All other assets deliver quality services for residents. To that end, in January 2015, Council approved the City’s existing assets, the estimated cost for needed improve- Asset Management Policy, making asset management ments on existing and future assets, and the remaining a core business function. Asset management is not service life of existing assets had never been performed a singular activity or project; rather, it is a systematic on this scale within the organization before. process that facilitates decision-making in regards to the construction, acquisition, operation, maintenance, The CAMP applied a consistent approach to how data renewal, replacement, and disposition of assets in the was collected and analyzed across the entire portfolio of most cost-effective manner. City-owned assets. This instituted a benchmarking tool for monitoring key performance indicators and allowed The adoption of the Asset Management Policy also for an objective comparison over multiple service areas. established the framework for infrastructure steward- For the first time, the City was able to strategically ship through comprehensive Asset Management Plans categorize asset types and grade the physical condition (AMPs). AMPs are integrated with and help guide the of its main infrastructure elements. long-range infrastructure investment planning process based on considerations such as affordability and, in the As the City’s asset management plans were developed, future, defined service levels. support from cross-functional teams and dedicated asset management leads fostered a shared vision which The City completed its first City Asset Management Plan improved communication, provided new insights on (CAMP) in 2018, and the 2018 State of the Infrastructure asset performance, and initiated a fundamental change Report, a high-level summary of the detailed findings of in how investment models could be created to maximize the C AMP. value from City assets. Strategies and continuous improvement initiatives were addressed and will serve as Through the CAMP, the consolidation and analysis of guidelines as the City continues to gain more knowledge information on assets across all departments, including about its assets. the historic distribution of capital funding for these assets over the last decade, was undertaken. Providing detailed information about the City’s infrastructure as a whole, including the replacement value and condition of City of Winnipeg | 2020 Infrastructure Plan 5 STATE OF THE INFRASTRUCTURE REPORT UNFUNDED MAJOR CAPITAL PROJECTS REPORT The City's 2018 State of the Infrastructure Report outlined In order to provide City Council and the public with a the City’s infrastructure deficit, across all civic services, proper overview of the City’s current major capital which totaled $6.9 billion over 10 years (2018-2027), projects that required funding, the City produced the for both new and existing infrastructure. This deficit Unfunded Major Capital Projects report in May 2019. was calculated by amalgamating each department’s This document provides a summary of information spending plans and needs over the next decade. Total on 22 proposed unfunded major capital projects over capital investment needs for each department were 10 years (2019-2028). The unfunded major capital based on a 10-year horizon and included both existing projects included in the document ranged in costs from and new infrastructure. The gap between total capital $24 million to $1.8 billion. These major capital projects investment requirements and estimated future capital have a total cost of over $4.9 billion, of which roughly funding resulted in an approximately $6.9 billion deficit. $4.5 billion is unfunded and together these projects comprise about 60% of the City’s infrastructure deficit. INFRASTRUCTURE DEFICIT (2018-2027) MULTI-YEAR BUDGETING PROCESS A multi-year budget is a process that plans and authorizes * government’s expenditures and anticipated revenues for $6.9 Billion consecutive budgetary years. The advantages of multi- year budgeting include improved financial management and long-range strategic planning. The City of Winnipeg has a structural deficit in the tax-supported budget and much time is spent annually New Infrastructure by both the Public Service and elected officials in deter- 42% mining options to balance. Existing Infrastructure To address this, the City has undertaken a multi-year budget process for the 2020 budget year. A multi-year 58% tax-supported budget will permit Council to set the course for fiscal decisions by balancing
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