The City of Winnipeg 2012 Adopted Capital Budget 2013 - 2017 Five Year Forecast Adopted by Council - December 13, 2011 The City of Winnipeg 2012 Adopted Capital Budget and 2013 to 2017 Five Year Forecast Adopted by Council on December 13, 2011 WINNIPEG, MANITOBA, CANADA 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 2012 ADOPTED CAPITAL BUDGET ii 2013 TO 2017 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: Authorized Net Debt ......................................................... 5-18 2012 ADOPTED CAPITAL BUDGET iii 2013 TO 2017 FIVE-YEAR FORECAST The City of Winnipeg Overview 2012 Adopted Capital Budget and 2013 to 2017 Five Year Forecast Adopted by Council on December 13, 2011 and Five Year 2012 2013 to 2017 Budget Capital Capital Forecast 2012 Adopted ADOPTED CAPITAL BUDGET 1 2013 TO 2017 FIVE YEAR FORECAST 2012 st ADOPTED CAPITAL BUDGET 2 PROCESS 2013 TO 2017 FIVE YEAR 2012 CAPITAL BUDGET FORECAST Public consultation session on November 1 Review Committee Standing Policy Council debate and adoption 2012 ADOPTED 2012 CAPITAL BUDGET CAPITAL CONTEXT BUDGET Multi-year view Challenged by aging infrastructure and an infrastructure deficit Federal and Provincial 3 government funding partners facing deficits 2013 Debt strategy adopted by TO Council – June 22, 2011 2017 Global market uncertainty FIVE YEAR FORECAST 2012 ADOPTED HIGHLIGHTS CAPITAL 6 Year Capital investment plan of $2.3 billion: BUDGET • Total Streets projects $451.6 million • Continued commitment to the redevelopment of Assiniboine Park through the Assiniboine Park Conservancy - $57.7 million 4 • Waste Minimization Strategy • Public Safety - new Police Headquarters, Police District 2013 Stations and Fire Paramedic facilities replacement plan TO • New Community Centre Renovation Incentive Grant 2017 Program FIVE YEAR FORECAST 2012 ADOPTED HIGHLIGHTS CAPITAL $393.2 million in 2012 BUDGET • Total Streets projects $149.9 million • Plessis Road Twinning and Grade Separation $77 million • East Yard Complex Development $49.5 million 5 • Planning, design and preparation for future Rapid Transit Corridors 2013 • Automated garbage and recycling carts and an organics TO (yard waste) composting facility 2017 FIVE Cash to Capital $69.5 million in 2012 and increasing by YEAR $2 million per year FORECAST 2012 AREAS OF MAJOR ADOPTED CAPITAL INVESTMENT 2012 - 2017 CAPITAL $923.9 million for sewage disposal BUDGET projects $451.6 million for roads and bridges $184.9 million for the water system $172.9 million for parks, community 6 infrastructure and amenities $161.7 million for the transit system $145.0 million for solid waste 2013 disposal and garbage collection TO $92.5 million for land drainage and 2017 flood control FIVE $62.2 million for public safety YEAR infrastructure FORECAST 2012 CAPITAL PROJECTS ADOPTED Authorizations (millions of dollars) CAPITAL 154.4 Public Works 119.2 BUDGET Community Services, Planning, 82.2 Property and Development & Municipal Accommodations 28.6 Water, Solid Waste and 57.9 Garbage Collection 28.0 51.4 Sewer 7 47.6 24.5 Transit 28.1 2013 Land Drainage, Flood 14.1 TO Control & Other 19.1 2017 8.7 Public Safety FIVE 99.5 YEAR 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 2012 Adopted $393.2 million FORECAST 2011 Adopted $370.1 million Excludes P3 payments 2012 ADOPTED CAPITAL FINANCING (millions of dollars) CAPITAL Sewer & Water Charges, 104.0 BUDGET Reserves 85.8 82.7 Debt 67.7 79.8 Provincial Funding 54.9 8 69.5 Cash to Capital 67.5 2013 66.2 Federal Funding 62.8 TO 2017 15.5 Other FIVE 42.3 YEAR 0 102030405060708090100110120 2012 Adopted 2011 Adopted FORECAST Authorizations $393.2 million Authorizations $370.1 million P3 Payments 24.5 million P3 Payments 10.9 million Total Financing $417.7 million Total Financing $381.0 million Includes P3 Payments • • Other Entities included and subsequent in 2009 years Debenture debtandP3obligations included 1000 1200 1400 1600 1800 2000 200 400 600 800 CITY OFWINNIPEG NETDEBTPERCAPITA 0 Tax-supported 1995 1996 1997 1998 Transit, Municipal Accommodations 1999 2012 2000 ADOPTED 2001 at December 31st 2002 CAPITAL 2003 2004 BUDGET 2005 2006 2007 Utility Operations Utility 2008 9 2009 2010 2013 2011 TO 2017 2012 FIVE 2013 Forecasted Other Entities YEAR 2014 FORECAST 2015 2016 2017 2012 ADOPTED CREDIT RATING CAPITAL BUDGET Aa1 Aa1 Aa2 Aa2 10 Aa3 Aa3 ` Rating Scale 2013 A1+ A1+ TO 2017 A1 A1 FIVE YEAR A1- FORECAST 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Moody’s Investors Service OVERVIEW Council Adoption of the 2012 Capital Budget On December 13, 2011 Council adopted the following recommendations: 1. A. That the 2012 Capital Budget totaling $393,149,000 requiring new borrowing authority of $41,250,000 for tax-supported operations and the Solid Waste Utility capital programs, as tabled at the Executive Policy Committee meeting on November 22, 2011, and amended by Recommendation No. 2, be approved. Note: Borrowing authority for the “East Yard Complex Development” in an amount of $41,414,000 has been authorized by Council on November 16, 2011. B. That the 2013 to 2017 Five Year Capital Forecast as tabled at the Executive Policy Committee meeting on November 22, 2011, and amended by Recommendation No. 2, be approved in principle. 2. A. 1. That the Recreational Walkways and Bike Paths detail on page 3-2 of the Preliminary 2012 Annual Capital Budget be amended as follows: a. Delete “Lagimodiere Blvd NB - Cottonwood to Maginot - paved shoulders”, as this project was deferred and replaced by “Functional Design study for Marion - Archibald to Lagimodiere”, and; b. Advance the funding shown for “Lagimodiere Blvd NB - Maginot to Dugald - paved shoulders” to 2014 as this Mill and Fill Project is proposed in the Regional and Local Street Renewal for 2014. 2. That funding in the amount of $50,000 be allocated from within the 2012 capital project “Community Image and Neighbourhood Main Streets” for the purchase of new easy to maintain planters on Main Street (between St. John’s Avenue to Sutherland Avenue). 2012 ADOPTED CAPITAL BUDGET 11 2013 TO 2017 FIVE YEAR FORECAST OVERVIEW 3. That the desire to create a Winnipeg Transportation Authority be reaffirmed, to implement the priorities in the recently approved Transportation Master Plan, and that the Winnipeg Public Service be directed to report back to the Standing Policy Committee on Infrastructure Renewal and Public Works in 90 days with a proposed Terms of Reference. 4. That the Winnipeg Public Service be directed to report back to the Standing Policy Committee on Protection and Community Services, within 120 days, with a strategy for the redevelopment of previously prioritized Libraries as follows: A. New Infrastructure Option – Replacement; B. Lease Option – Relocation. 3. That the cash to capital contribution be as follows: Year $ Millions 2012 69.478 2013 71.478 2014 73.478 2015 75.478 2016 77.478 2017 79.478 4. That all transfers to/from reserves and other funds outlined in the capital budget be approved. 5. That the expenditure of up to $4.5 million be authorized for the Assiniboine Park Conservancy - Capital Development Plan in 2012 or prior to the adoption of the 2013 Capital Budget as a first charge against the General Capital Fund, in accordance with subsection 288(2) of The City of Winnipeg Charter to facilitate timely work on the Capital Development Plan. 6. A. That the City of Winnipeg work with the Province of Manitoba to allocate $1.6 million (to be cost-shared 50/50 with the City and the Province) from the existing Building Communities Initiative for the East Elmwood Community Centre. B. That the City of Winnipeg request new, incremental funding of $900,000 from the Province to be matched 50/50 with City funds for the East Elmwood Community Centre. 2012 ADOPTED CAPITAL BUDGET 12 2013 TO 2017 FIVE YEAR FORECAST OVERVIEW C. That the expenditure of up to $340,000 be authorized for the East Elmwood Community Centre in 2012 or prior to the adoption of the 2013 Capital Budget as a first charge against the General Capital Fund, in accordance with subsection 288(2) of The City of Winnipeg Charter to undertake initial design work to determine the final cost estimate for project construction. 7. That the expenditure of up to $400,000 be authorized for the preliminary design for the Panet Road/Molson Street Twinning - Munroe Avenue to Grassie Boulevard project in 2012 or prior to the adoption of the 2013 Capital Budget as a first charge against the General Capital Fund, in accordance with subsection 288(2) of The City of Winnipeg Charter. 8. That an amount of $50,000 from the Corporate Non-Specified Capital Account be authorized for a review to determine funding options for full local streets renewal costs and that the Winnipeg Public Service be directed to report back to Council in 2012. 9. That the City of Winnipeg request new, incremental funding of $1 million from the Province of Manitoba to be matched 50/50 with City funds for the planning, design and preparation for future Rapid Transit Corridors.