Long Range Financial Plan - Tax Supported Capital

Council was asked to

1. Approve the funding strategy for Renewal, Growth, and Regulatory capital needs: That the annual contribution from taxation to the Citywide Capital Reserve Fund be increased by inflation (Non-Residential Building Construction Price Index) and that the $6 million increase to the base budget started in 2018 be doubled to $12 million, as a priority within Council’s approved tax targets in 2027 and 2028; That $4.5 million of the additional base budget be directed to debt servicing to fund $60 million in additional debt in each of the 2027 and 2028 budgets That 0.15 per cent attributable to growth in property tax revenue be directed to the growth budget envelope annually starting in 2027. A one-time contribution of any excess over the minimum target amount from the City-Wide Capital Reserve estimated at $32 million at the end of 2026 to be included in the 2027 budget for renewal and growth.
2. Direct staff to continue to explore and assess financial and non-financial strategies to address the funding gap for renewal, growth and regulatory capital needs, and report back to Council with recommended strategies as part of the updated Asset Management Plans and Tax LRFP in the next term of Council.
3. Approve the funding strategy for Service Enhancements capital needs: Direct Staff to explore and assess other financial and non-financial strategies, including policy changes for service enhancements, as described in this report, and report back to Council with recommended strategies and possible policy changes as part of the updated Asset Management Plans and Tax LRFP in the next term of Council.
4. Approve the establishment of a Climate Change Reserve Fund to fund climate change investments / enhancements associated with infrastructure capital projects and allocate the following sources of revenue to that reserve fund as part of the annual budget process and as revenues are received: Any annual Hydro Ottawa dividend surpluses Tangible operating and capital savings achieved due to climate change investments Direct staff to report back in the next term of Council, with a recommended prioritized project list and associated spending plan for capital project investments aligned with Council-approved climate adaptation and mitigation priorities.
5. Approve the funding strategy for Facility Replacements as described in the report.
6. Direct Staff to use the Facility Replacement Strategy, to guide the creation of the 2027 Prioritize Facility Replacement Plan within the given funding envelope, as well as identifying inventory for rationalization, in alignment with the Facilities Rationalization Service Review and the Facilities Rationalization Policy and Procedures, to submit to Council for approval by end of Q2 2027.
7. Approve the allocation of the following sources of revenue to fund facility replacement projects as part of the annual budget process and as revenues are received: Net proceeds from facility and land disposals. Tangible operating and capital savings that result from facility rationalizations. Fund facility replacements with debt funding, offset by the net proceeds of disposals and tangible savings from facility rationalizations. Increase the debt servicing budget for tax supported debt by $2.6 million annually from 2027 to 2030 and by $0.7 million annually from 2031 to 2035 to close the estimated funding gap for facility replacement needs identified in this report.
8. Approve a pilot for an agile capital budgeting approach for Transportation Planning’s roads and related growth projects governed by the financial and project prioritization frameworks as described in this report Direct staff to develop a ten-year spending plan and capital project list for the pilot to be approved by Council as part of the 2027 budget process.
9. Delegate authority to the City Treasurer and CFO to reallocate funding to projects, as required, within the first four years of the spending plan in alignment with the financial and project