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 1X  s%mulus  funding    • Connec%ng  levels  of  service  for  today’s  built  environment  to  “price”    • Out  of  date  legisla%ve  powers  for  today’s  modern  infrastructure  issues  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