TAMRMS#: B06
6.3
REQUEST FOR DECISION
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10 Year Municipal RMR Capital Plan
Presented by: Deborah Johnson, Financial Controller, Financial & Strategic Services
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RECOMMENDED MOTION(S)
recommendation
1. That Council members submit any motions for proposed amendments to the 2026-2035 Municipal RMR Capital Plan to Administration by May 23, 2025.
2. That Administration prepare backgrounders for motions for proposed changes to the 10 Year Municipal RMR Capital Plan for presentation to Council at the June 3, 2025 meeting for consideration of approval.
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SUMMARY
To provide Committee members with a preliminary view of the 10 Year Municipal RMR Capital plan for future consideration of approval for the 2026 projects.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
Council Policy C-FS-05 Budget and Taxation Guiding Principles
Service Standards/Expectations
3-Municipal and Utility capital budgets shall be prepared and approved by Council for a rolling ten (10) year period and Administration shall be given approval to execute on year one (1) of the plan.
5-The approved operating and capital budges shall serve as the financial plan for the City and provide Administration with the direction and resources necessary to accomplish Council’s strategic direction and Council approved services and service levels in accordance with the Services and Service Levels Inventory, provided as Schedule 1.
7-The City is committed to the preservation and long-term viability of its current infrastructure and as such commits available capital dollars towards the repair, maintenance and replacement of existing assets prior to consideration of new capital growth projects and assets.
19e- Council shall review and provide final approval of the RMR Capital Budget approximately six months prior to the next fiscal year.
19f- This approval shall grant Administration the authority to issue binding procurement documents such as Request for Proposals, Invitations to Tender and purchase orders and to award contracts at any time after final approval is received from Council.
Any contracts awarded will ensure that the goods and/or services will not be received until after January 1 of the following year when the budget dollars become available. Complete project charters supporting the current year’s RMR capital plan will be provided to Council as part of the review process.
BACKGROUND AND DISCUSSION
The 10 Year Capital Plan is a long-term planning document that provides key strategic inputs for the upcoming budget year, a framework for the three-year budget plan, and a future outlook of long-range capital requirements. The plan identifies the capital projects and budget requirements (as compiled within a Capital Project Charter) to maintain the City’s existing infrastructure while minimizing future risk. The City’s capital infrastructure is categorized into two types:
1. Repair, Maintain, Replace (RMR) - Capital initiatives that relate to maintaining current service levels that are required by lifecycle plans and are considered a replacement or rehabilitation of existing infrastructure, facilities, and equipment.
2. Growth - Capital initiatives that are required to meet future demand relating to facilities, equipment, technology, and infrastructure for the development of cultivating and strengthening the community.
With these categorizations, Administration can better manage its capital projects by evaluating its investment needs, funding requirements, and to ensure essential services are maintained.
Within the Council Policy C-FS-05, an early approval of the RMR Capital Budget has continued to provide process efficiencies in the capital management process by:
• Redistributing the workload during key times to ensure adequate time for preparation of charters and Request For Proposal (RFP) bids;
• Resulting from early preparation of RFP bids, attraction of increased competitive pricing and reduced purchasing costs;
• Facilitating early application of grants so that funding is approved and available for the start of the subsequent approved year;
• Reducing the amount of information relating to the Capital Budget during the corporate budget process, whereby Council can review additional RMR or Growth related capital charters.
10 Year Capital Planning Process
The 10 Year Capital Plan is developed by compiling information from various sources such as:
• Council priorities and goals;
• Alignment with Council approved service levels and Council Policy C-P&E-07 Asset Management;
• Infrastructure studies and diverse master plans.
Several corporate assumptions are considered when initiating each capital charter:
• Assessment of impact or risk to community relating to public health, safety, legal obligations, or regulatory requirements;
• Annual detailed review of lifecycle and replacement plans;
• Staff resources and capacity during project implementation;
• The effect of potential operational impacts and long-term requirements; and
• Federal, Provincial and Reserve funds available.
In addition, the project budget is reviewed and updated to reflect various cost drivers and adjustments due to:
• Cost inflation and US dollar exchange rate;
• Refined cost estimates;
• New information contained in updated Engineers’ reports and further review of conditional assessment data; and
• Assessing department requirements that may result in additions to the Capital Plan.
In considering the listed criteria, various planning studies, and cost updates, Administration is better prepared to recommend a 10 Year Capital Plan that accurately reflects the requirements to repair, maintain, and replace exiting City infrastructure as outlined in the attachment entitled “10 Year Municipal RMR Capital Plan.”
2026 Municipal RMR Capital Budget
For 2026, the Municipal RMR Capital Budget comprises 28 projects equating to $37,978,100 which is a variance increase of $5,121,750 compared to the prior year’s 2026 plan and is detailed in the attachment titled “Municipal RMR Capital Budget Variance”. This includes $9,230,300 for Transit Bus Lifecycle Replace (approved AR-23-417 for $8,267,300 and AR-24-207 for $963,300).
To further understand the total costs and type of infrastructure needs, five asset categories have been established, of which 36.3% is represented by Mobile & Other Equipment, followed by 33.1% for Roads & Other Engineering Structures.
Asset Category Amount (in millions) % of Total
Mobile & Other Equipment $13.8 36.3%
Roads & Other Engineered Structures 12.6 33.1%
Civic Facilities 10.4 27.4%
Parks & Trails 0.9 2.4%
Master Plans, Studies & Other 0.3 0.8%
Historical/ Cultural 0.0 0.0%
$ 38.0
Capital Funding Availability
The City has several sources of funding available to be used towards capital infrastructure. The funding allocations are composed of various Provincial and Federal Grants, City Reserves, and Pay as You Go (PAYG) funds established through the Capital Funding Formula.
The 2026 RMR Capital Project recommended funding commitments are as follows:
Funding Source Total (millions)
Pay As You Go (PAYG) $0.8
Lifecycle reserves 25.0
Grants 12.2
Total 38.0
The remaining available balance of $16.2 million will be allocated for funding of Capital Projects related to Growth initiatives and/or future needs. Administrative recommendations regarding specific allocation of these funds for 2026 growth projects and/or deferral to future years will be made as part of the 2026-2028 Business Plan and Budget.
The Capital Project Charters regarding the above are outlined in the attachment titled “2026 Municipal RMR Capital Charters”.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPACTS OF RECOMMENDATION(S)
Financial:
The 10 Year RMR Capital Plan reflects recommended “funded” projects. Any changes or ‘un-funding” of projects in the Plan would have no effect on the tax base as all funding is made available through grants, reserves, and are within the Capital Funding Strategy. As such, the recommendation of the 2026 10 Year Municipal RMR Capital Plan for approval to Council of $38.0 million would have no incremental tax implications.
Compliance & Legal:
None at this time.
Program or Service:
If the recommendation for approval to Council is passed, this would enable Administration to begin the preparatory work relating to site planning, establishing commitments, RFP process, and submission of grant applications. This would be accomplished with the understanding that no spending is to occur until the 2026 Budget is approved, as per Council Policy C-FS-05 Budget and Taxation Guiding Principles.
The RMR 10 Year Capital Plan identifies the requirements to maintain the City’s existing infrastructure. If approval is not made, the future risk of programs/services provided to residents could be significantly impacted.
Organizational:
None at this time
Risks
Not applicable.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Initiative aligned with Strategic Plan:
Not Applicable
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Financial Planning
Stewardship of development of annual operating and capital budgets for Municipal and Utility operations
IMPACTS OF ALTERNATIVES CONSIDERED
N/A
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Report Date: May 13, 2025
Author(s): Deborah Johnson
Department: Financial & Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Chief Administrative Officer: William Fletcher