Council Approves Infrastructure Upgrades and New Facilities in Three-year Capital Budget

December 08, 2011

The City of Edmonton will replace the century-old Walterdale Bridge; reconstruct and maintain older communities through the Neighbourhood Renewal Program; purchase land for the West to Southeast LRT line; build a new Borden Park outdoor pool; continue arterial road work; and fund community facilities such as the iHuman arts program for at-risk youth, the new CKUA space on Jasper Ave., and the Whitemud Equine Centre.

These are only some of the items included in a Capital Budget that sets infrastructure spending of $2.75 billion over the three years 2012 to 2014.

“City Council made some difficult decisions regarding our limited funding available to deliver projects that move us towards our City vision,” said Lorna Rosen, Chief Financial Officer and Treasurer for the City.

“This three-year budget will move ahead many projects that will greatly contribute to our quality of life in Edmonton. And Edmonton continues to be one of just a handful of municipalities in North America that recognizes the importance of maintaining and funding appropriately its infrastructure assets to ensure long-term social, economic and environmental sustainability.”

Almost half of the capital budget is allocated to projects intended to maintain existing structures, avoiding costly repair and replacement costs later. The balance goes to the new facilities and amenities required to accommodate a population that is expected to grow 5.5% in the four years from 2011 to 14. 

Of the planned spending, $1.15 billion or 42% of the Capital Budget is funded through grants from other orders of government, while the balance is funded by investment earnings, developer/user fees, or general financing and debt paid back through municipal taxes.

The three-year Capital Budget will increase property taxes by 0.75% in 2012, 0.70% in 2013 and 0.67% in 2014 to service debt on three major projects—the Walterdale Bridge, the new Northwest Police Campus, and Southeast to West LRT land purchases—and to provide additional funding for Council’s priority projects.

In mid-December, City Council will set the Operating Budget, which will determine the final funding required from property taxes. The Provincial education tax is announced in the spring, and is added to the property tax bill.

Other Capital Budget projects approved by City Council include design work for a new Capilano Library and the downtown Milner Library exterior upgrade; design and land servicing for a new Pilot Sound Fire Station; initial funding towards the expansion of the Winspear Centre; renewal of several community parks; support for Active Transportation infrastructure; and a range of major road and building rehabilitation work.

The City’s total debt in 2012 will be $2.47 billion, which is 37% below the debt limit set by the Province of Alberta.

Rosen said the City will leverage a number of sources to ensure sustainable funding of projects included in the budget.

“City Council has worked hard with us to balance responsible fiscal management with the need to enhance the quality of life for citizens in a growing, and ageing, city,” she said.

Some major renewal and maintenance projects:

  • Neighbourhood Renewal
  • Replace Walterdale Bridge
  • Central LRT Station roof repair
  • Streetscape program
  • Mill Woods Senior Centre and Multicultural Facility
  • Abbotsfield Recreation Centre
  • Fire Rescue equipment replacement

Some major growth projects continuing in 2012-14:

  • LRT to NAIT
  • Multi-purpose Recreation Centres
  • Southeast to West LRT land purchases
  • Northwest Police Campus
  • 41 Avenue (Township Rd. 512)-Highway 2 interchange
  • Southwest Division Police Station
  • Ellerslie and Lewis Estates Fire Rescue Services Station
  • Clareview Branch Library

Background

The capital budget spans a three-year time period because of the complex and lengthy process involved in many civic projects, such as major recreation centres, road renewal, parks development and bus replacement programs.

Capital projects have an impact on the annual operating budget due to the cost of staffing and operating new facilities from prior capital budgets, and, when borrowing is used to fund projects, the cost of servicing the debt is included in the operating budget.

Renewal projects maintain tax-supported assets with a total replacement value of $20.5 billion. Risk exposure and physical condition are assessed to prioritize work that needs to be done each three-year cycle and establish renewal targets for the budget.

Growth projects are prioritized according to their contribution to Council priorities, public health and safety, legal obligations, and contribution to the City’s strategic outcomes, partnerships and civic revenue streams. Projects were first rated by individual departments and authorities, and then assessed in a peer review process.

 

For more information:

Lorna Rosen

Title Chief Financial Officer & Treasurer
Telephone

780-944-5524
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