2021-2022 Capital Budgets

During budget deliberations on November 30 to December 4, City Council approved the 2021 and 2022 Capital Budgets. Capital budgets pay for major project such as reconstructing streets; building and improving public facilities such as recreation facilities, community centres, parks and fire halls; dealing with growth pressures such as new streets; and initiatives.

The approved 2021 Capital Budget totals $218.7 million. Below is the top 20 major projects approved:

 
Project 2021 Approval Amount Project years
Fire Training Facility $4.468 million 2021
2021 Paved Roadway Network Management $13.788 million 2021
Collicutt Centre Preservation 2021 $2.945 million 2021
Intermediate (Central) School Renovation Completion $4.604 million 2021
9-1-1 Emergency Communications Centre $5.782 million 2021
CP Rail Overpass $6.343 million 2021
GH Dawe Community Centre $35.526 million 2021-2022
Park Land Acquisition 2021 $10.1 million 2021
Road 6: Taylor Drive / Hwy 11A Intersection $8.184 million 2021
Civic Yards Flood Berm $4.604 million 2021
Storm Water Infrastructure $8.023 million 2021
2021 Fleet Replacement Vehicles $2.812 million 2021
ELP Substations & SCADA (current projects) $2.654 million 2020-2023
Wastewater Main Infrastructure (annual program) $3.954 million 2021
Wastewater Treatment Plant Flood Berm Construction $3.946 million 2021
Water Utility Infrastructure (annual program) $7.540 million 2021
WWTP Rehab, Replacement & Upgrades $3.905 million 2021
ELP Enhancements of Electrical Service (customer-driven) $2.406 million 2021
Area 1: Hazlett Lake – Overflow Drainage Route Rehab $2.806 million 2021-2022
WWTP Phase 5A Project $42.313 million 2021-2022

The approved 2022 Capital Budget totals $75.1 million. Council approved this budget during the multi-year budget deliberations in late 2021. They will review this budget in advance of 2022 to respond to external influences and just the already approved budget accordingly. Below is the top 20 major projects approved for 2022:

Project 2022 Approval Amount
2022 Bridge Rehabilitation and Replacement $1,416,000
2022 Information Technology Refresh $962,000
2022 Paved Roadway Network Management $14,599,000
Install New Parking Pay Infrastructure $2,884,000
Traffic Control Systems Replacement $2,097,000
College Park Servicing (Water/Sanitary) $4,719,000
2022 Fleet Replacement Vehicles $6,214,000
Development Servicing - Annual $1,462,000
ELP Infrastructure Replacements & Upgrades 2022 $2,595,000
ELP Overhead & Underground Systems-Annual 2022 $1,971,000
Municipal 3rd Party Capital Work $1,573,000
Wastewater Main Infrastructure $1,696,000
Wastewater Main Infrastructure – Annual Program $4,157,000
Water Utility Infrastructure – Annual Program $7,927,000
WTP Rehabilitation & Replacement $1,057,000
WWTP Rehabilitation, Replacement and Upgrades – Annual Program $2,046,000
ELP Enhancements of Electrical Service (Customer-Driven) 2022 $2,495,000
Northland Drive from Hwy 2 to Taylor Drive – 4 lanes $4,089,000
Sanitary Truck (NE3) – adjacent to Hwy 2A, connecting shared regional Line to the area (City Snow Site) $1,363,000
What is a capital budget?

The capital budget indicates the funds needed for a specific year of the 10-year capital planning period. It is how we pay for major projects such as reconstructing streets; building and improving public facilities such as recreation facilities, community centres, parks and fire halls; dealing with growth pressures such as new streets; and new initiatives. These costs are similar to adding an addition to your home this year.

What is a capital plan?

Most of The City’s capital expenditures are planned on a long-term basis to make them more manageable. The estimates that are included in the 2023 – 2030 capital plan are placeholder values for the funding that is expected to be required in each of the years. Longer-term planning allows The City to tailor projects to the changing needs of the community and to better manage finances. Our capital forecast is similar to your plan to purchase a new vehicle in two years or start home renovations in three years.

What are the total capital budgets approved during budget deliberations November 30 to December 4, 2020?

City Council approved the following capital budgets:

  • 2021 Capital Budget: $218.7 million
  • 2022 Capital Budget: $75.1 million
How are the capital projects funded?

There are five categories of funding for the capital budgets, however, the main source of funding is from grants in 2021 and reserves in 2022

  • Debt: this is split into tax supported debt and other debt, however both contribute towards The City’s debt limit. The amount of debt a municipality can incur is set by the Government of Alberta at 1.5 times annual revenue. Based on this formula, the debt limit for The City is $541.1 million as of December 31, 2019 and is projected to drop to $534.2 million in 2020 due to reduced revenues as a result of COVID-19. The City has also set a policy to limit The City’s debt to 75 per cent of the provincial debt limit.
  • Operating: Some capital expenditures are funded with transfers from department operating budgets.
  • Grants: The City receives grants from both the Provincial and Federal Governments annually. The Municipal Sustainability Initiative (MSI) grant from the Provincial Government is the main grant used to fund capital budgets. Another significant grant is the Gas Tax Fund (GTF) from the Federal Government. At this point in time, both of these grants and/or a replacement program are expected to be received for the next 10 years.
  • Reserves: The main source of capital funding for tax supported operations is the Capital Projects Reserves. This reserve is generally used to fund projects less than $1 million, non-eligible expenses for grant funded projects and operating grants funded by capital.
  • Developer/customer contribution: Some capital expenditures are initiated by developers and customers, such as EL&P customer servicing, annual development servicing and development agreement sign and paving markings. These projects are funded through payments by the developers and customers which includes proceeds from land sales.