Town Council receives 10-year Capital Forecast and Financing Plan

Tue, 27 Feb 2018

Plan offers affordable and sustainable approach to long-term spending

Council received the town’s long-term financial roadmap at its meeting last night, supporting Council’s commitment to make strategic investments in building and renewing community infrastructure, while keeping Oakville’s finances healthy and stable. The 2018-2027 forecast totals $1.25 billion and includes the $129.1 million in spending for 2018 previously approved by Council on December 18, 2017.

“Establishing a responsible and sustainable long-term spending plan allows the town to continue providing citizens with important programs and services, plan for future growth and keep facilities and infrastructure assets in a state of good repair,” said Mayor Rob Burton. “The forecast represents a sound financial approach to meet the needs of our community while maintaining Oakville’s financial health.”

Staff developed the 2018-2027 forecast based on the town’s master plans and infrastructure requirements. It allocates funds to address ongoing capital requirements in five categories: infrastructure renewal, growth, strategic priorities, community enhancements and enterprise initiatives. Funding sources for the capital budget includes property taxes, town reserves, development charges and external sources such as gas tax.

The forecast outlines an affordable approach to maintaining assets and plans for growth, while keeping town reserves at appropriate levels. New debt financing is not a factor for the 10-year outlook and the forecast keeps tax supported debt repayment levels well below Council’s capped limit of 6.25 per cent.

During her presentation to the Budget Committee on February 7, 2018, Catharine Hewitson, acting senior manager, Financial Planning, noted that projects related to growth account for 50 per cent of the total 10-year capital budget, followed by infrastructure renewal at 39 per cent.

“Infrastructure renewal spending over the next 10 years is consistent, averaging about $48 million per year,” Hewitson said. “In the area of growth, spending fluctuates in the years ahead and the forecasted plan aligns with the expected development for Oakville. Overall, the long-term budget continues to implement the objectives set out in Council’s strategic plan and maintains a level of fiscal stability that residents can be confident in.”

Highlights of the 10-year forecast include:

  • $623.9 million for growth-related projects including $23 million for new fire stations in the Palermo and north Oakville area, $36.7 million for new buses, vehicles and equipment, $46 million for new parks/parkettes and $53 million for the construction of the Sixteen Mile Community Centre and Library. Several new road construction projects are planned over the next 10 years and include:
    • the creation of two new underpasses and road improvements including pedestrian facilities and cycle ways for the Lakeshore West Rail Corridor at Kerr Street and Burloak Drive;
    • the reconstruction and widening of Speers Road to five lanes between the Bronte GO Station entrance and Kerr Street, with new pedestrian facilities and cycle lanes;
    • the reconstruction and widening of North Service Road East between Eighth  Line and Invicta Drive, including new pedestrian facilities and cycle lanes; and
    • a new QEW interchange at Royal Windsor Drive, including an extension of Iroquois Shore Road between Eighth Line and North Service Road East.
  • $484.8 million for infrastructure renewal initiatives to improve and maintain the town’s assets including $9.2 million for the Lakeshore Road Reconstruction and Streetscape Project, over $12 million in bridge/major culvert rehabilitation projects, over $28 million to support specific active transportation projects (such as cycling infrastructure, sidewalks and multi-use paths), $44.7 million for the rehabilitation of parks and trails, $84.9 million for facility renewal across Oakville and $101 million for road resurfacing projects.
  • $72.4 million in community enhancements with $46.5 million allocated for the construction of the South East Community Centre and park (on the former hospital site lands), $21 million for the completion of the Trafalgar Park Revitalization Project and $4.8 million in park and trail improvements (such as new splash pads in existing parks and work on waterfront trails).
  • $49.8 million for strategic priorities including $20.6 million for the Emerald Ash Borer Management Program, $6.0 million for Khalsa Gate Streetscape improvements and $2.4 million for the Glen Abbey Library Creation Hub and renovation.
  • $16.2 million for enterprise initiatives which includes $1.2 million for town-owned parking lot improvements, $3.7 million for seawall installation and rehabilitation and $1.4 million for dredging projects.

For more information on the 2018 Budget and 10-year capital forecast visit our 2018 Budget page.