TAMRMS#: B06
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Operating & Capital Carry Forwards & Completed Projects
Presented by: Anne Victoor, Manager, Financial Services
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RECOMMENDED MOTIONS
recommendation
1. That the 2020 Municipal Capital Carry Forward amount of $195.3 million, which includes a $309 thousand net budget increase, as detailed in the document entitled “Municipal Capital Projects - Carry Forward”, provided as an attachment to the February 16, 2021 agenda report be approved.
2. That the residual balances remaining in the 2020 Municipal Capital closed projects in the amount of $717 thousand as detailed in the document entitled "Municipal Capital Projects - Closed", provided as an attachment to the February 16, 2021 agenda report be uncommitted within their respective funding sources.
3. That the 2020 Utility Capital Carry Forward amount of $48.7 million, which includes a $200 thousand budget decrease, as detailed in the document entitled "Utility Capital Projects - Carry Forward”, provided as an attachment to the February 16, 2021 agenda report be approved.
4. That the residual balances remaining in the 2020 Utility Capital completed projects in the amount of $2.1 million as detailed in the document entitled "Utility Capital Projects - Closed", provided as an attachment to the February 16, 2021 agenda report be uncommitted within their respective funding sources.
5 That the 2020 Municipal and Utility Operating Carry Forward amount of $6.0 million, as detailed in “Operating Carry Forwards”, provided as an attachment to the February 16, 2021 agenda be approved.
6. That reserve balances be updated to reflect the realized net savings from completed Municipal and Utility Operating projects as detailed in the attachment titled “Completed Operating Projects With Residual Balances” provided as an attachment to the February 16, 2021 agenda report.
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PURPOSE OF REPORT
This report provides Council with an overview of the Municipal and Utility Carry Forwards and Closed Projects for consideration of approval
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Strategic Priority #4: Infrastructure Investment: Identify and build needed capital assets.
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
N/A
ALIGNMENT TO COUNCIL DIRECTION
As per Council Policy C-FS-11, Operating and Capital Carry Forwards Policy:
Any operational or capital project that has not been completed during its budgeted fiscal year shall be brought forward for consideration as part of Administration’s report on proposed year end transfers, and all projects shall be subject to a maximum carry-forward deadline.
Any operating or capital project that is fully completed within the fiscal year shall be brought forward for consideration as part of Administration’s report on proposed year end transfers, and all projects with a surplus shall have that surplus directed back to its original funding source if feasible.
BACKGROUND AND DISCUSSION
The purpose of a capital carry forward is to ensure that there is adequate funding available to complete Council approved capital projects overlapping budget years.
The purpose of an operating carry forward is to ensure that there is adequate funding available to complete projects, one-time initiatives in a given timeframe without impacting tax or the operating budget in subsequent years.
Municipal Capital Carry Forwards and Closed Projects
In 2020, the City had a total of 168 Municipal Capital Projects, of which:
• 123 projects to be carried forward of $195.3 million
• 45 projects to be closed with project surplus of $717 thousand.
Of the 123 municipal capital projects an increase of $309 thousand is recommended; $213 thousand due to higher costs to complete the HRIS payroll system and $97 thousand for a Sound Study on the Akinsdale Pickleball court. The funds for the Sound Study have already been committed within the project so no additional funds are required.
The $717 thousand realized net surplus on the closed projects are recommended to be uncommitted within their respective funding source for allocation to future Council approved projects.
Utility Capital Carry Forwards and Closed Projects
In 2020, the City had a total of 64 Utility Capital Projects, of which:
• 47 projects to be carried forward of $48.7 million
• 17 projects to be closed of $34.6 million with project surplus of $2.1 million.
Of the 47 capital projects that remain in progress a decrease of $200 thousand is recommended due to lower project costs.
The $2.1 million net realizable savings on the closed projects recommended to be uncommitted within their respective funding source for allocation to future Council approved projects.
Operating Carry Forwards
The recommended operating carry forward total of $6.0 million as detailed in the attachment titled Operating Carry Forwards is comprised of:
Projects and Initiatives - Current Year
• $1.2 million funded from the 2020 operating budget
• $1.5 million funded from reserves
• Various projects and initiatives include the Purchasing Software, NAKI Transit Winter Maintenance and Service Level Review.
Projects and Initiatives - Prior Year
• $3.3 million funded from reserves
• Various projects and initiatives include Sturgeon County Annexation, Safety Enhancement and Civic Space Planning.
Utility Projects and Initiatives
• $147 thousand funded from reserves
• Various projects and initiatives include the Utility Relief grant and Single Use Items Workplan.
Completed Operating Projects with residual balances
During the year, the City completed a number of operating projects funded from reserves. Of the completed projects, there was a net realized residual savings of $142 thousand as detailed in the attachment titled Completed Operating Projects With Residual Balances. It is recommended that these funds be uncommitted for future Council approved projects.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
NA
IMPLICATIONS OF RECOMMENDATION(S)
Financial:
• Approval to carry forward budgets for Municipal Capital and Utility Capital will ensure that Administration can complete Council approved projects.
• Approval to un-commit within or transfer to appropriate reserves the realized net savings from closed projects ensures that dollars will be available for future capital needs which represents prudent financial planning.
Legal / Risk:
None at this time
Program or Service:
If funds recommended to be carried forward are not approved, projects/programs still in progress will not have the appropriate funds to complete.
Organizational:
None at this time
ALTERNATIVES AND IMPLICATIONS CONSIDERED
If Council does not wish to support the recommendation, the following alternatives could be considered:
• Specific projects should be identified by Council for completion and appropriate funds be carried over.
• Specific projects should be identified by Council to not proceed and the appropriate funds be withdrawn and no other expenditures be incurred, and the funds returned to funding sources, as per Council Policy.
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Report Date: February 16, 2020
Author: Anne Victoor
Department: Finance & Assessment
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Kevin Scoble