HomeMy WebLinkAboutTR-70-87 TOWN OF NEWCASTLE
t t,
r t' REPORT File #
Res. # �
— -- = -�. By-Law #
MEETING: GENERAL PURPOSE & ADMINISTRATION COMMITTEE
DATE: November 2, 1987
REPORT #:TR-70-87 FILE #:
SUBJECT:
1988 FIVE YEAR CAPITAL BUDGET GUIDELINES
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-70-87 be received; and
2. That the attached guidelines for preparation of the 1988 Five Year
Capital budget be endorsed.
BACKGROUND & COMMENTS:
Staff have commenced preparation of the 1988 Five Year Capital Budget.
The attached guidelines will serve to establish consistent principles
within which the estimates and various options can be evaluated by senior
staff and presented to Committee for approval. These guidelines should be
regarded as a framework within which the budget material will be prepared.
Guidelines with respect to the 1988 current budget will be presented to
committee in early December for approval.
Respectfully submitted, Recommended for presentation
to the Committee
J.R. Blanchard, I, rence otseff,
Treasurer. Chief Ad n F trative Officer.
k
JRB/pp
ATTACH:
1988 CAPITAL BUDGET
1 9 8 8 C A P I T A L P R O G R A M
A N D F O R E C A S T T O 1 9 9 2
TOWN OF NEWCASTLE
1988 CAPITAL BUDGET
POLICY GUIDELINES
Guideline
The following guideline for the 1988 Capital Budget and Forecast to 1992 should be adhered to.
Program Guideline
1. That the Chief Administrative Officer and the Treasurer review with Departments and major Boards
the current service standards for all programs and the size anh status of prior year's program in
order to evaluate not only the 1988 proposed level of service, but also the type of funding
required for each program prior to Committee review.
2. That the 5 year capital program be prepared in accordance with service standards established for
each program on the following basis:
a) Provide supportive information relating to expenditures, standards and deficiencies, to indicate the
need to maintain on-going programs at a level comparable to 1987.
b) Provide supportive information, including existing standards and deficiencies, to justify the need
for new capital projects.
C) That all departments and major boards submit budgets for all on-going capital programs and
planned capital projects.
d) That all programs will be prepared on a priority basis. This will provide options to arrive at
various levels of service and funding for each program.
3. In support of the long term financial planning objectives required for a modified "pay-as-you-go"
program, the following information is to be prepared for all capital programs:
a) That all departments prepare Capital Budget Projections from 1989-1992, indicating the total
projected program cost and all applicable financing based on 198.7 financial Policy.
b) That requests for 1988, and any shortfall in program estimates for 1988 and 1989, to be
financed, be reviewed with the Chief Administrative Officer and Treasurer prior to the 'G
presentation of the draft 1988 Capital Budget.
TOWN OF NEWCASTLE
L
1988 CAPITAL BUDGET
Financial Guidelines
1. That the 1988 Capital Budget be prepared on the following basis:
a) Capital programs be evaluated and maintained at an appropriate level that in conjunction with
alternative financing, will eliminate tax supported debt from most 1988 capital budget programs.
b) That lot levies available at December 31, 1987, be provided as contributions towards 1988 applicable
growth related projects. .,
c) That where possible, the "pay-as-you-go" policy which has gvolved over the years be continued
and capital programs and related contributions be maintained in the 1988 Current Budget.
2. Five Year Capital Program Objective
a) That the residential mill rate percentage for debt charges on Tax Supported debt continue to be
reduced through adopting where possible the "pay-as-you-go" program.
TOWN OF NEWCASTLE ( ^
1988 CAPITAL BUDGET
POLICY GUIDELINES
The Town of Newcastle long term financial planning be based on "pay-as-you-go" financing where possible.
The objectives of the program are:
1. To provide projects when they are required, based on established standards or new studies.
2. To provide projects at the lowest cost.
3. To eliminate existing and future tax supported debt.
The major sources of financing for the Capital Budget are:
1. General Municipal Levy and Reserve Funds - for growth related programs.
a) Arterial and Collector Roads and Sidewalks
b) Parks & Recreation Facilities
2. Combinations of Subsidy, Tax Levy and Reserves for facility reconstruction and certain growth related
programs.
a) Local Streets, Park & Recreation Facilities
b) Sidewalks, Street Lighting and Cemetery Facilities
c) Growth Related - Library, Cultural and Fire Facilities
I�)
TOWN OF NEWCASTLE
1988 CAPITAL BUDGET
The Building and Energy Conservation Improvements Reserve was established in 1986 to help finance
reconstruction and building maintenance programs.
The purpose of the Building and Energy Conservation Improvements Reserve was:
1. To provide financing for reconstruction of major facilities.
2. To provide contributions to cover the shortfall between the size of the approved program and the
financing available from other sources.
3. To provide financing for approved building maintenance programs.
Contributions from the Building and Energy Conservation Improvements Reserve and the tax levy are
necessary to finance projects that cannot be financed by the growth related General Municipal Levy
on new development. As facilities age, it is essential that funds are available for reconstruction
or improvements.
Contributions from this reserve for reconstruction programs can be controlled and monitored by:
1. Reviewing the size of the program and the financing available and, if necessary, reducing the
size of the program.
2. Gradually increasing the tax levy contributions and reducing the amount financed from the Building
and Energy Conservation Improvement Reserve.
3. Establish financial policy to finance certain capital programs by means of specific financial
packages.
4. Where necessary, debenture financing to spread the cost over the life of the project.
5. Establish a building profile for each facility.
TOWN OF NEWCASTLE
n