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Getting the Story Out A Na%onal Challenge
The Sustainable Foundation
1. Cost = Green field development vs Brown field development
2. Three/four year mandates vs 100 year asset life cycles
3. Raw lands sales are finite and not a sustainable prac%ce
In the beginning Current state
New Assets built by developers then given to municipalities
$170 Billion Infrastructure gap and growing
Why Do Municipalities Have a Gap?
• Popula%on shiHing to ci%es • Funding cuts = Under investment by senior governments in maintenance, renewal & replacement
• Limited, condi%onal 1X s%mulus funding • Connec%ng levels of service for today’s built environment to “price” • Out of date legisla%ve powers for today’s modern infrastructure issues
• Fed/Prov downloading – regulatory changes = higher costs
Downloading - The Big Picture - Capital
“Downloading of responsibility is not necessarily a bad thing provided the funding comes with it; currently it does not.” —Okanagan mayor
6 -‐ Sta%s%cs Canada, Table 031-‐0002,
35%
52%
Columbia Ins%tute, Who’s picking up the Tab?
Downloading – Funding
$4 Billion gap = 1995 per capita
vs 2008 per capita
Columbia Ins%tute, Who’s picking up the Tab?
Downloading – Filling the Gap $$$
“Senior governments should be open and honest about downloading and make it part of policy dialogue and not
change ‘by stealth.’” —Okanagan mayor Columbia Ins%tute, Who’s picking up the Tab?
GDP & Economic Growth N/A
1. In good %mes LG does not share in economic growth 2. In bad %mes LG is pressured to contain costs and cut services
94.00
96.00
98.00
100.00
102.00
104.00
106.00
2000 2002 2004 2006 2008 2010 2012 2014 2016
Economy = Impact on Business Community Services = steady state
Downloading – What LG Elected Leaders Say
As one mayor commented, "there's always money to build something to provide short term 'feel good' projects, but never any money to maintain them once they're completed."
Percent of Officials that have par%cipated in a Federal or Provincial Program that transferred or was ini%ated with grants/short term funding not supported by ongoing funding.
Columbia Ins%tute, Who’s picking up the Tab?
Economic Action Plan 2013
Today
Sustainment Capital
Infrastructure Deficit
1% = $12.6 Million
Closing the Gap
District’s physical condi%on based backlog / deficit +-‐ $86 million
Per Day!
• Fire $1.05 / Police 97 cents • Library same as solid waste… 40 cents • Recycling 27 cents • Sewer/Drainage $1.43 • Water $1.53 • Recrea%on $1.24/ Parks 52 cents • Gas $2.82 / Hydro $3.35 • Cell Phone $2.39 • Milk $1.41 • Vancouver Sun newspaper 86 cents
Asset Management Performance
ü Asset Management Plans integrate with Financial Plans
ü Asset Management Strategy & Levels of Service
ü Council Asset Management Policy ü Best prac%ce performance ra%os
ü Opera%ng Surplus + RV Deprecia%on ü Use of Debt ü Asset Sustainability
DNV AM For Sustainable Service Delivery ü Asset Management best prac%ces have enabled us to:
ü Support long term sustainment of services ü Know the physical condi%on and risk profiles in each major asset group ü Measure and assess asset u%liza%on, demand and capacity ü Strengthen our long term funding strategies and financial sustainability ü Bring beser alignment of funding to sustain life cycle costs ü Use debt holis%cally to augment steady state replacement of assets
End
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