Capital Reserve Funding

The 2023 – 2027 Capital Plan includes new facilities and facility upgrades, road expansion and rehabilitation and the acquisition and development of parkland for a growing community Some of these are ongoing projects that will continue into the 2024 to 2028 budget period Many of these projects are funded from reserves that will result in a drawdown of the reserve fund balances from 2023 to 2027

The following capital reserve balances will experience significant changes as a result of project expenditures that meet the criteria for which the reserve was intended: h Building Component Asset Replacement Reserve— funding for the lifecycle replacement of facility components h Density Bonus, Community Amenity Contributions and Major Facilities Reserves—funding for the Spani Pool Renewal and the planning and design of the Northeast Community Centre h DCC Matching Reserve—funding for the municipal portion of the projects in the DCC program h Major Transportation Reserve—funding for major, primarily non-DCC eligible transportation projects including Quarry Road to connect to Widgeon Regional Park and the Fremont Connector (Lincoln to Victoria) h Park Infrastructure Asset Replacement Reserve—funding for the lifecycle replacement of parks infrastructure and equipment h Road Asset Replacement Reserve—funding for the acceleration of the local road network repaving h DCC Reserves—funding growth-related DCC-eligible projects throughout the city, including parkland acquisition, park development as well as transportation and utility projects h Land Sale Reserve—funding internally financed projects, land development work and strategic land purchases h Vehicle Replacement Reserve—funding the ongoing vehicle replacement

The following chart summarizes the capital reserve activity and indicates a gradual growth in reserve balances The additions to the City’s development and land sale reserves tend to fluctuate due to the variability in the overall level and type of development and/or land sale activity which affects the amount and timing of the related revenues such as density bonus The remaining reserves tend to have a more constant and steady increase mainly due to the City’s contributions to asset replacement The City actively utilizes these reserves for funding of a variety of related capital projects The significant increase in 2023 withdrawals and related decrease in reserve balances is due to the funding of the capital work in progress for projects that are carried forward from previous years

Capital Reserve Balances 2019–2027