Council adopts 2020 Capital Budget and 10 Year Capital Plan
Lacombe, Alberta (November 14, 2018) – At their regular meeting Tuesday, Council adopted the 2020 Capital Budget, which comprises 49 projects totaling at estimated $8.8 million, as presented. Council also accepted the 2020-2029 Capital Plan for information.
“Through forethought and good planning, Council and City administration were able to adjust for the anticipated reductions in provincial transfers in our capital planning,” said Mayor Grant Creasey. “We are pleased to be able to keep up with the necessary upgrades to our roads and other infrastructure, and make additional investments to ensure Lacombe’s long-term sustainability.”
“This budget balances investment in our community with the need for responsible financial management.” said Chief Administrative Officer Matthew Goudy.
2020 Capital Budget
The City of Lacombe’s 2020 Capital Budget sees an estimated $8.8 million in expenditures spread through 49 projects, 29 of which were anticipated in prior years. Funding for these projects is sourced primarily from grant funding at $4.07 million, reserve withdrawals at $3.68 million and debenture borrowing at one million.
The 49 projects are distributed among five categories: Engineering Structures - $5.2 million; Buildings - $1.52 million; Mobile Equipment - $1.1 million; Land Improvements - $0.35 million; Vehicles - $0.65 million.
Road improvements make up the majority of capital costs for 2020, along with infrastructure and facility upgrades and playground improvements. Equipment and vehicle purchases account for the rest of the costs. Major projects include:
- Northstar Drive: Valley Crescent to Valley Crescent (replacement of curb and gutter, road base, road surface, water, sanitary sewer and storm mains) – $1,386,838
- Highway 2A Service Road: Woodland Drive to Dickens Lane (replacement of curb and sidewalk, road base and road surface) – $ 1,185,986
- Brownstone Road: design and construction/rehabilitation of road base and road surface - $ 1,130,025
- Public Works Building (design and preparatory work) - $1 million
- Northstar Drive: Garden Road to Valley Crescent (replacement of curb and gutter, road base, road surface, water and sanitary sewer) - $564,358
- Unit 203: Flush/Vac Combo Truck replacement – $559,475
- Unit 332: Street Sweeper replacement - $344,000
- Playground Replacement: Heritage and Lincoln Park - $300,000
- Arena 1: Acoustic Ceiling Tiles/Sound System - $215,000
2020 – 2029 (Ten Year) Capital Plan
The 2020-2029 Capital Plan, updated annually, outlines the future capital requirements of the City of Lacombe based on Council priorities and existing infrastructure maintenance requirements. This plan exceeds the provincial and federal requirements for multi-year capital plans, which are conditions of funding for some federal and provincial capital programs.
The City’s long-term infrastructure needs have been planned for through a fully funded 10-year capital plan. The proposed funding is a combination of third party contributions, debenture borrowing, grants and reserve contributions.
Costs are based on 2020 costs. Inflation is not factored into future expenditures unless specific future costs are known. Grant funding is based on funding agreements currently in place. In anticipation of cuts from the Provincial Government, a 25 per cent reduction in Municipal Sustainability Initiative Capital funding has been included.
Major changes to the 2020-2029 Capital Plan include:
- The addition of $5 million for a new Public Works Building (scheduled for 2020 and 2021). The current 10 Year Plan has allocated resources to explore the possibility of a new public works shop and yard.Current economic conditions (low interest rates, real estate valuations) make it favorable to explore this need.
- C&E Trail upgrades (from 63 Street north to the City boundary). With ongoing development of this area, road upgrades are needed in the future. The plan has identified $10 million in expenditures over 2024 -2029.
- A new fire hall for the Lacombe Fire Department. This $5 million expenditure is slated to start in 2023 with completion in 2024.
- $500,000 in funding for the expansion of a running track and field house at the Lacombe Athletic Park in 2021 and 2022.
The 2020 budget process was informed by community engagement efforts that occurred throughout the year, starting with a survey in May.
For more information on the 2020 Capital Budget and 2020-2029 Capital, please see the November 12, 2019, Council Meeting Agenda at http://www.lacombe.ca/home/showdocument?id=12701.