City of Winnipeg City of 2011 ADOPTED CAPITAL BUDGET 2012 - 2016 Five Year Forecast Adopted by Council - February 22, 2011 The City of Winnipeg 2011 Adopted Capital Budget and 2012 to 2016 Five Year Forecast Adopted by Council on February 22, 2011 To obtain copies of this document, please contact: The City of Winnipeg Winnipeg, Manitoba R3B 1B9 Telephone Number: 311 Toll Free : 1-877-311-4WPG(4974) Prepared by Corporate Finance, The City of Winnipeg City of Winnipeg website: www.winnipeg.ca 2011 ADOPTED CAPITAL BUDGET ii 2012 TO 2016 FIVE-YEAR FORECAST Table of Contents Overview ..................................................................................... Section 1 Capital Projects Summary .......................................................... Section 2 Capital Projects Detail ................................................................ Section 3 Service Based View ..................................................................... Section 4 Appendices .................................................................................. Section 5 Appendix 1: City of Winnipeg Profile ...................................................... 5-1 Appendix 2: Cost Estimation Classification System ................................... 5-8 Appendix 3: Capital Priority Rating System ........................................... 5-10 Appendix 4: Public Private Partnership Payments ................................... 5-12 Appendix 5: Historical Analysis of Borrowing Authority Financing Sources, Application of Funds ........................................... 5-13 Appendix 6: Statement of Current and Authorized Debenture Debt ......... 5-17 2011 ADOPTED CAPITAL BUDGET iii 2012 TO 2016 FIVE-YEAR FORECAST The City of Winnipeg Overview 2011 Adopted Capital Budget and 2012 to 2016 Five Year Forecast Adopted by Council on February 22, 2011 and Five Year Capital Budget 2012 to 2016 Capital Forecast 2011 ADOPTED 2011 Adopted CAPITAL BUDGET 1 2012 TO 2016 FIVE YEAR FORECAST 2011 2011 CAPITAL BUDGET ADOPTED PROCESS CAPITAL The City’s first Capital Budget public consultations December 6th th BUDGET and December 9 Infrastructure Funding Council Comprehensive Asset Management Initiative Standing Policy Committee Review and Council debate and 2 adoption 2012 TO 2016 FIVE YEAR FORECAST 2011 2011 CAPITAL BUDGET ADOPTED CONTEXT CAPITAL BUDGET Multi-year view Challenged by aging infrastructure and an infrastructure deficit 3 Capital construction inflation not as high as in the recent past 2012 TO Government Partnerships 2016 FIVE YEAR FORECAST 2011 ADOPTED HIGHLIGHTS CAPITAL 6 Year Capital investment plan of $2.2 billion: Commitment to the redevelopment of Assiniboine Park BUDGET • through the Assiniboine Park Conservancy - $57.7 million • Public Safety - $161.6 million including the new Police Headquarters and the Fire Paramedic facilities replacement plan 4 $370.1 million in 2011 2012 • PPP Canada funding of $22.3 million for Chief Peguis TO Trail 2016 • University of Winnipeg - Soccer Complex - $2 million FIVE Cash to Capital $67.5 million in 2011 and growing annually YEAR by $2 million FORECAST 2011 AREAS OF MAJOR ADOPTED CAPITAL INVESTMENT CAPITAL $905.7 million for sewage disposal projects BUDGET $422.4 million for roads and bridges $210.2 million for parks, community infrastructure and amenities 5 $171.5 million for the water system 2012 $161.8 million for the transit system TO 2016 $161.6 million for public safety infrastructure FIVE $81.9 million for land drainage YEAR and flood control FORECAST 2011 ADOPTED COMPREHENSIVE ASSET MANAGEMENT CAPITAL Three Key Concepts Use Business Approaches BUDGET ¾ Continuously delivering ¾ Define asset requirements established levels of service ¾ Use business case ¾ At an acceptable level of risk evaluations 6 ¾ Reduce the lifecycle costs ¾ Incorporate risk and 2012 of owning, operating and prioritization TO maintaining infrastructure 2016 assets FIVE YEAR FORECAST 2011 ADOPTED COMPREHENSIVE ASSET MANAGEMENT BENEFITS CAPITAL ¾ Lower overall cost of asset ownership over time BUDGET (capital and operating costs) ¾ Improved asset reliability and asset effective life 7 ¾ Better allocation of scarce resources through risk 2012 management TO 2016 ¾ Improved coordination over the asset life cycle FIVE YEAR ¾ Improved asset knowledge management and use of FORECAST data to drive decision making 2011 ADOPTED CAPITAL FINANCING CAPITAL Sewer & Water Charges, 85.8 Reserves, Frontage Levies 76.5 BUDGET 67.7 Debt 105.7 67.5 * Cash to Capital 65.5 9 62.9 * Federal Funding 74.7 2012 54.9 Provincial Funding TO 95.0 2016 31.3 2011 Adopted $370.1 million P3 Authorizations and FIVE Other 22.0 2010 Adopted $439.4 million YEAR 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 FORECAST Millions of $ * Includes funding for P3 payments. 2011 CITY OF WINNIPEG NET DEBT PER CAPITA ADOPTED at December 31st CAPITAL 1800 1600 BUDGET 1400 1200 1000 800 10 600 400 2012 200 TO 0 2016 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FIVE Forecasted YEAR Tax-supported Transit, Municipal Accommodations Utility Operations Other Entities •Debenture debt and P3 obligations included FORECAST •Other Entities included in 2009 and subsequent years 2011 ADOPTED CREDIT RATING CAPITAL BUDGET Aa1 Aa1 Aa2 Aa2 11 Aa3 Aa3 ` 2012 Rating Scale A1+ A1+ TO 2016 FIVE A1 A1 YEAR FORECAST A1- 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source Moody’s Investors Service OVERVIEW Council Adoption of the 2011 Capital Budget On February 22, 2011 Council adopted the following recommendations: 1. A. That the 2011 Capital Budget totalling $370,114,000 requiring borrowing authority of up to $78,952,000, as tabled at the Executive Policy Committee meeting on January 21, 2011, and amended by Recommendation No. 2, be approved. B. That the 2012 to 2016 Five Year Capital Forecast as tabled at the Executive Policy Committee meeting on January 21, 2011, and amended by Recommendation No. 2, be approved in principle. 2. That up to $1 million in funding be allocated each year from the $3 million Granular Roadway Improvements project account for sub-cutting and adding gravel to unimproved gravel back-lanes in need of repair. 3. That the cash to capital contribution be as follows: Year $ Millions 2011 67.478 2012 69.478 2013 71.478 2014 73.478 2015 75.478 2016 77.478 4. That all other transfers to/from reserves and other funds outlined in the Capital Budget be approved. 5. That the expenditure of $9.409 million be authorized for the Transit Building Replacement/Refurbishment in 2011 or prior to the adoption of the 2012 Capital Budget as a first charge, in accordance with Subsection 288(2) of The City of Winnipeg Charter to allow for timely contract award and capital work. 6. That the expenditure of $800,000 be authorized for the Assiniboine Park Conservancy – Capital Development Plan in 2011 or prior to the adoption of the 2012 Capital Budget as a first charge, in accordance with Subsection 288(2) of The City of Winnipeg Charter to allow for timely contract award and capital work. 2011 ADOPTED CAPITAL BUDGET 12 2012 TO 2016 FIVE YEAR FORECAST OVERVIEW 7. That the Director of Legal Services and City Solicitor be requested to submit the necessary borrowing by-law directly to Council. 8. That the Proper Officers of the City be authorized to do all things necessary to implement the foregoing, including the execution of any documents related thereto. 2011 ADOPTED CAPITAL BUDGET 13 2012 TO 2016 FIVE YEAR FORECAST The City of Winnipeg CAPITAL PROJECTS SUMMARY 2011 Adopted Capital Budget and 2012 to 2016 Five Year Forecast Adopted by Council on February 22, 2011 2011 CAPITAL ADOPTED PROJECTS CAPITAL SUMMARY Notes: BUDGET 1. Capital budget amounts are estimates only and are subject to materials management policy (e.g. tenders, bids, and contract awards including Public Private Partnership proposals). 2. In the attached Capital Projects Listing, tax supported capital projects are financed by 2 cash to capital unless another funding source is disclosed for the project. In addition, -i the Manitoba Winnipeg Infrastructure Program and Provincial funding for Road Improvements financing amounts are not all allocated to individual capital projects. These unallocated financing amounts will offset cash to capital requirements. 2012 3. The Public Service uses the Association for the Advancement of Cost Engineering TO (AACE) International Classification system for capital budget estimate purposes for all 2016 non-scalable projects. Capital estimates for non-scalable projects contained in this FIVE budget document are supported by a class 4 or 5 estimate, unless specifically noted. YEAR FORECAST 2011 Table of Contents ADOPTED Summary of Capital Program ……………………………………………………………… 2-1 Summary of Financing Sources ……………………………………………………………2-2 CAPITAL Tax Supported Public Works ………………………………………………………………………………………………………2-5 BUDGET Local Improvements ………………………………………………………………………………………………2-8 Community Services ………………………………………………………………………………………………2-9 Winnipeg Police Service ………………………………………………………………………………………… 2-10 Fire Paramedic Service ……………………………………………………………………………………………2-10 Planning, Property and Development ……………………………………………………………………………2-11 2 -ii Municipal Accommodations ………………………………………………………………………………………2-12 City Clerks …………………………………………………………………………………………………………2-13 Corporate Support Services ………………………………………………………………………………………2-13 2012 Assessment and Taxation…………………………………………………………………………………………2-13 Other Projects ………………………………………………………………………………………………………2-13