TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: November 18, 2024 Report No. FIN-24-020
TO: Committee of the Whole
FROM: Ian Irvine, Director of Financial Services
SUBJECT: Infrastructure Asset Management and Long Term Financial Sustainability Analysis
RECOMMENDATION:
Recommendation
That the Committee of the Whole recommends to Council that:
(a) the annual capital reserve fund contributions within the financial plan, starting in 2025, be increased to an amount higher than the existing 1.00%;
(b) annual non-market change revenue be used to increase capital reserve fund contributions; and
(c) these changes be incorporated into the policies and objectives document as an attachment to the annual financial plan bylaw.
Body
EXECUTIVE SUMMARY:
Following a December 2023 staff report to Council, staff engaged an external consultant to better understand and assess the Township's long term capital assets and funding levels. Based on the findings and recommendations within the analysis, staff have prepared this report to seek direction regarding the Township's capital infrastructure program and the desired approach to achieve the necessary level of sustainable funding.
Based on the analysis provided in this report, the Township's current capital program is not enough to maintain infrastructure sustainably; without an increase in funding and an increase in the rate of repair/replacement of Esquimalt's infrastructure assets, the Township will not be able to sustain services at current levels.
BACKGROUND:
At the December 18, 2023, Council meeting staff presented information (see Attachment 1) regarding the Township's asset management approach and current funding levels. Following discussion, Council endorsed the presented approach, which included the approval of asset assessments and plans, a 1% cumulative annual increase to the reserve contributions to assist with bridging the funding gap, and direction to staff to provide a report regarding non-market...
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