Loading...
HomeMy WebLinkAboutFIN 18-24Report to Executive Committee Report Number: FIN 18-24 Date: September 3, 2024 From: Stan Karwowski Director, Finance & Treasurer Subject: Building Faster Fund – 2024 Investment Plan - File: F-4910-001 Recommendation: 1. That Report FIN 18-24 regarding the Building Faster Fund grant from the Province of Ontario be received; 2. That Council authorize and approve the capital project listing in the report to be funded by the Building Faster Fund grant; and 3. That the appropriate City of Pickering officials be given authority to take the necessary actions to give effect thereto. Executive Summary: The purpose of this report is to obtain Council approval on City staff’s investment plan on utilizing the Building Faster Fund (BFF) grant dollars. On March 13, 2024, Premier Doug Ford announced that the City of Pickering will be receiving $5.2M in funding for exceeding its 2023 housing target, through the Province of Ontario’s new Building Faster Fund, which incentivizes municipalities to tackle housing supply issues, by providing performance-based funding for housing and community infrastructure. For this grant, City staff are required to submit an “Investment Plan” (IP) to the Province that lists potential projects and or uses of these dollars. This process is similar to the Canada Community Building Fund whereby City staff submit every year to AMO a list of proposed projects to be funded from the grant. City staff have done a thorough review of eligible capital projects that can benefit from this grant and submitted the capital project list to the BFF (provincial) staff who provided draft approval. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Corporate Key to Deliver on Good Governance – Open & Transparent Decision Making; and Pickering Strategic Plan priority of Advance Innovation & Responsible Planning to Support a Connected, Well-Serviced Community. FIN 18-24 September 3, 2024 Subject: Building Faster Fund – 2024 Investment Plan Page 2 ______________________________________________________________________ Financial Implications: The City of Pickering has been allocated approximately $5.2 million in BBF funding that is required to be spent by March 31, 2026. City staff have done a thorough review of eligible capital projects that can benefit from the BFF grant which are identified in the in table one. Utilizing the BFF grant for these vital core infrastructure capital projects will create capacity for the City’s existing reserves and reserve funds, which can be used for future core infrastructure capital projects. The City has been given an extension to September 30, 2024, to submit its Investment Plan (IP) for 2024. Discussion: The purpose of this report is to obtain Council approval on City staff’s investment plan on utilizing the Building Faster Fund grant dollars. On March 13, 2024, Premier Doug Ford announced that the City of Pickering will be receiving $5.2M in funding for exceeding its 2023 housing target, through the Province of Ontario’s new Building Faster Fund, which incentivizes municipalities to tackle housing supply issues, by providing performance-based funding for housing and community infrastructure. City staff have done a thorough review of eligible capital projects that can benefit from this grant. The BFF is a new provincially funded program designed to reward municipalities that enable home construction, based on meeting its provincially assigned housing targets. It is a three-year program that will provide $400 million per year to municipalities that have achieved 80% or more of their annual housing targets. The funds are awarded based on the percentage of the housing targets met, with bonuses for exceeding the target (up to a maximum of 25% over target). In 2023, Pickering experienced 1,502 new housing unit starts, exceeding their target of 951 units by 58 percent. As a result, the City received the maximum funding allocation available, $5.2 million. There are still two more years of BFF availability, but whether the City is successful in receiving future funding will depend on the housing starts in 2024 and 2025. The below table identifies the proposed capital projects to be funded from the BFF grant. It is anticipated that these projects will begin in the last quarter of 2024, with an estimated 2024 spending of approximately $725,000. The projects identified total $4,550,000, with the remaining grant funds of $650,000 being carried over to 2025 and will be utilized for 2025 capital projects. FIN 18-24 September 3, 2024 Subject: Building Faster Fund – 2024 Investment Plan Page 3 ______________________________________________________________________ Table 1: Capital Project Listing The funding of $5.2 million that the City has received for achieving its housing target must be spent by March 31, 2026. City staff are confident that the projects listed above will be completed by this deadline. Attachment: 1. City of Pickering – 2024 BFF Investment Plan Proposed Activity Description (including anticipated outcomes) Total Amount to be Committed/Spent 2024 Estimated Spending Autumn - Stormwater management cleanout Maintenance of our stormwater management ponds are critical to reducing flood risk, reducing erosion, and improving / maintaining water quality within our watersheds and surrounding community. Sediment removal will restore function of the facility in achieving mandatory water quality/quantity objectives. $ 1,050,000 $ 50,000 Begley Street - Stormwater management cleanout Maintenance of our stormwater management ponds are critical to reducing flood risk, reducing erosion, and improving / maintaining water quality within our watersheds and surrounding community. Sediment removal will restore function of the facility in achieving mandatory water quality/quantity objectives. $ 550,000 $ 50,000 Wilson Bridge Replacement The Wilson Bridge on Seventh Concession Road has been identified through our biennial OSIM inspection and asseement program (legislated for all structures that exceed a span of 3m) as requiring replacement. Design is complete and approvals will be in place for 2025 construction. $ 2,100,000 $ - Sideline 24 - Hard Surfacing The hard surfacing of Sideline 24 between Alexander Knox Road (formerly Whitevale Road) and Hwy 7 will provide for a key transportation connection for the growing Seaton Community. $ 600,000 $ 600,000 Old Brock Road New Streetlights - from Hoxton Street to Uxbridge-Pickering Townline Design and Construction The installation of streetlights along this section of road increases safety by guiding motorists and pedestians/cyclists. This section of road is a key transportation link for a new residential subdivision being developed to the south. $ 250,000 $ 25,000 GRAND TOTAL $ 4,550,000 $ 725,000 FIN 18-24 September 3, 2024 Subject: Building Faster Fund – 2024 Investment Plan Page 4 ______________________________________________________________________ Prepared By: Approved/Endorsed By: Original Signed By: Original Signed By: Jason Bekramchand, CPA Stan Karwowski, CPA, CMA, MBA Senior Financial Analyst, Director, Finance & Treasurer Capital & Debt Management Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer 1 2024 BFF Investment Plan Instructions Section A: Contact Information Please provide the contact information of a representative from your municipality that can answer follow-up questions from the Ministry of Municipal Affairs and Housing regarding any of the information provided in the template below. Section B: Proposed BFF Activities This section provides an opportunity to describe your municipality’s focus, actions and plans for use of BFF funding, including intended outcomes such as how the funding will contribute to increasing housing supply, housing development and/or address issues of housing affordability. Information on progress to date and future plans is welcome, but focus should be on activities planned for the coming year/immediate funding cycle. Section C: Proposed Building Faster Fund (BFF) Expenditures Please itemize how BFF funds will be used by activity/initiative as related to the eligible expenditures section. Section D: Attestation Attest that the information provided on Housing Plans and progress (Section B) and Proposed Expenditures for BFF funding (Section C) are true and correct, with approvals by municipal Council/ or their delegated authority. Attachment 1 to Report FIN 18-24 2 Name (First & Last) Stan Karwowski Title Director, Finance & Treasurer E-mail skarwowski@pickering.ca Phone 905-420-4640 Please describe the actions that will be supported with BFF funding, including how these actions support increasing housing supply, housing development, including issues of housing affordability and any identified risks to achieve housing targets. The City of Pickering has identified various projects that would benefit from the BFF funding. The plan is to use the $5.2 million earned for the 2023 housing targets for a broad range of projects which include stormwater management ponds cleanout, bridge replacements, asphalt resurfacing, hard road surfacing and streetlight installations. These projects are vital to the City as these enhancements/replacements/new construction would benefit both existing and new residents of Pickering. The completion of these vital capital projects will ensure that Pickering’s infrastructure will be able to accommodate the forecasted growth of 13,000 new homes by 2033. Section A – Municipality Contact Information Section B – Proposed BFF Activities Section C: Proposed BFF Expenditures Please enter detailed information in the table below on the planned expenditures for your BFF funding this year. Auditable detail will be requested for BFF expenditures at the end of each year which should directly connect to the activities/expenditures outlined in this section. Proposed Activity Eligible Expenditure Category Funding Type (Capital/ Operating) Description (including anticipated outcomes) Total Amount to be Committed/Spent 2024 Estimated Spending Other Sources of Funding (please specify amounts and sources) Autumn - Stormwater management cleanout Capital expenditure - housing enabling core infrastructure Capital Maintenance of our stormwater management ponds are critical to reducing flood risk, reducing erosion, and improving / maintaining water quality within our watersheds and surrounding community. Sediment removal will restore function of the facility in achieving mandatory water quality/quantity objectives. $ 1,050,000 $ 50,000 N/A Begley Street - Stormwater management cleanout Capital expenditure - housing enabling core infrastructure Capital Maintenance of our stormwater management ponds are critical to reducing flood risk, reducing erosion, and improving / maintaining water quality within our watersheds and surrounding community. Sediment removal will restore function of the facility in achieving mandatory water quality/quantity objectives. $ 550,000 $ 50,000 N/A Wilson Bridge Replacement Capital expenditure - housing enabling core infrastructure Capital The Wilson Bridge on Seventh Concession Road has been identified through our biennial OSIM inspection and asseement program (legislated for all structures that exceed a span of 3m) as requiring replacement. Design is complete and approvals will be in place for 2025 construction. $ 2,100,000 $ - N/A Sideline 24 - Hard Surfacing Capital expenditure - housing enabling core infrastructure Capital The hard surfacing of Sideline 24 between Alexander Knox Road (formerly Whitevale Road) and Hwy 7 will provide for a key transportation connection for the growing Seaton Community. $ 600,000 $ 600,000 N/A Old Brock Road New Streetlights - from Hoxton Street to Uxbridge-Pickering Townline Design and Construction Capital expenditure - housing enabling core infrastructure Capital The installation of streetlights along this section of road increases safety by guiding motorists and pedestians/cyclists. This section of road is a key transportation link for a new residential subdivision being developed to the south. $ 250,000 $ 25,000 N/A Total Funds to be Saved/Banked this Program Year $4,475,000* * Current estimate at this time. Actual spending will be reported at 2024 year-end. Carryover funds will be fully utilized in 2025. 4 ☒I declare that, to the best of my knowledge and belief, the information provided in this report is true and correct, with authorization/approval by local Council/Board or their delegated authority. Prepared by (Name and Title): Stan Karwowski, Director Finance & Treasurer Date: Approved by (Name and Title): Marisa Carpino, Chief Administrative Officer Date: Questions on the Building Faster Fund and Building Faster Fund implementation can be directed to: BuildingFasterFund@ontario.ca Section D – Attestation