TAMRMS#: B06
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Budget Amendment - Railroad Safety Enhancement Grant
Presented by: Diane McMordie, Director of Financial Services
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RECOMMENDATION(S)
recommendation
That the budget for project 415102, Rail Safety Enhancement, be amended by increasing the net revenue and expense budgets by $202,400 to recognize newly secured grant funding of $500,000 and, that the excess Pay As You Go (PAYG) funding of $297,600 be uncommitted from this project and made available for future Council initiatives.
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PURPOSE OF REPORT
To obtain Council approval to increase the budget for 415102 Rail Safety Enhancement to recognize new secured grant funding.
ALIGNMENT TO COUNCIL STRATEGIC PRIORITY
N/A
ALIGNMENT TO ADMINISTRATIVE PRIORITY
N/A
ALIGNMENT TO SERVICE DELIVERY
Service Name: Financial Planning
Definition: Stewardship of the development of annual operating and capital budgets for Municipal and Utility Operations.
Service Component: Municipal Operating Budget Development
COUNCIL DIRECTION
Project charter COUN-001 Railroad Safety Enhancement was approved as part of the 2015 Capital budget to address the issue of Railway Safety Enhancements. $450,000 was approved for the completion of fencing along Meadowview and Riel Drive crossings.
On September 19, 2016 Council passed the following motion:
(BL-16-001) That Administration consolidate funding account 415102 (COUN-001) valued at $438,145 remaining, account 413412 (COUN-001) valued at $250,000 remaining, and account 412101 (COUN-002) valued at $32,133 remaining, to a single source account and proceed with necessary Capital Improvements as outlined in "Summary of Railway Crossing Improvements" to the September 19, 2016 Agenda Report entitled "Non Statutory Public Hearing - Whistle Cessation Bylaw 15/2016", to meet 2014 updates to Transport Canada Standards for at grade railway crossings and installation of required fencing for whistle cessation; and That Administration proceed with applying to Transport Canada for potential grant funding for improvements related to safety improvements and capital work aligned with conforming to the updated 2014 Transport Canada Standards for at grade railway crossings.
BACKGROUND AND DISCUSSION
On May 25, 2018 the City was successful in securing a $500,000 grant from the Federal Minister of Transport under the Rail Safety Improvement Program. The funding was based on anticipated project costs of $964,500, which reflect updated design considerations. Although budgeted costs have increased to $964,500 from $762,100 the $500,000 grant from the Minister of Transport will reduce the City’s liability from the $762,100 to $464,500, resulting in $297,600 of PAYG funds being uncommitted and able to use for future Council approved projects.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPLICATIONS OF RECOMMENDATION(S)
Financial:
Should Council support this recommendation the City will be able to fully utilize the Federal Grant and move forward on installation of safety fences. PAYG funding in the amount of $297,600 will be uncommitted in the capital reserve for future capital projects.
Legal / Risk:
The City is eligible to receive 52% of all expenditures incurred by March 31, 2019 and any expenses incurred after this date will not be eligible. If there are delays in completing the project March 31, 2019 there is a risk that the City will not receive the full $500,000.
Program or Service:
NA
Organizational:
NA
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Should Council not wish to support the recommendation, the City would not be able to access the full amount of the capital grant and would likely require the full PAYG funding to complete the fence installation
Report Date: November 26, 208
Author(s): Diane McMordie
Committee/Department: Finance & Assessment Department
Deputy Chief Administrative Officer/Chief People Officer: Michelle Bonnici
Chief Administrative Officer: Kevin Scoble