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genda

A
The Township of Cavan Monaghan
Special Council Meeting
Monday, May 2, 2016
6:00 p.m.
Council Chambers
Members of the gallery are asked to please turn off all electronic devices during the Council Meeting.
Any special needs requirements pertaining to accessibility may be directed to the Clerks Office prior
to the meeting.
Pages
1.

Open Session

2.

Call to Order

3.

Approval of the Agenda

4.

Disclosure of Pecuniary Interest and the General Nature Thereof

5.

Closed Session

6.

Report - Finance-2016-07 Updated Financial Impact Review of a new Arena


and/or Community Centre (K Pope)

2-6

7.

Opportunity for the public to ask questions / provide comments on a potential


new community centre

7 - 24

Anyone wishing to speak must be prepared to provide their name and address to
be included in the minutes of the meeting. Each member will be limited to two (2)
opportunities to address Council during this meeting.
8.

General Business

9.

Confirming By-law
9.1

10.

By-law No. 2016-29 being a by-law to confirm the proceedings of the


Special meeting held May 2, 2016

25 - 25

Adjournment

Regular Council Meeting


To:
Date:
From:
Report Number:
Subject:

Mayor and Council


May 2, 2016
Kimberley Pope, Finance Department
Finance 2016-07
Updated Financial Impact Review of a new Arena and/or
Community Center

Recommendation:
That Council receives Finance Report 2016-07 containing updated information on the
financial impact of a new Arena and/or Community Center for information.
______________________________________________________________________
Overview:
On April 18th, 2016 staff reported to Council, Finance Report 2016-05, regarding the
potential financial impact of building a new Arena/Community Center. The report
identified the potential debt to build a facility ranging between $10 million - $30 million
and the associated implication on the municipalitys Annual Repayment Limit (ARL).
As per the presentation by The Rethink Group on current costs, the CAO requested that
an updated report be provided which considers a $15 million Arena or a $20 million
Community Center utilizing potential internal reserve transfers for consideration. Staff
have provided these updated calculations to include the annual debt repayments as part
of the municipal revenues and calculated ARL. The previous report maintained a
minimum 3% ARL available for potential emergency debt obligations. This report
indicates a reduced ARL below 3% in year 2018 (0.84%) and in year 2021 (1.31%).
The financial information provided maintains the growth forecasts as per the approved
Development Charges Study (May 2015) and the approved Water & Wastewater Study
(November 2015). The municipality maintains the long-term debenture of the Building
Canada Fund (BCF) project, as approved, for the Millbrook Water Wastewater
Treatment Plant, Water Storage Facility and extension of the Water & Wastewater
services along County Road 10. The calculations also maintain a potential $1 million
dollar future debt obligation for the replacement of Fire Station No.1.
The annual debt and financial obligation limits for municipalities are determined under
the Municipal Act 2001, to ensure the maximum debt capacity for the municipality is not
exceeded. A municipality shall use the most recent Annual Repayment Limit (ARL)
provided by the Ministry for any financial commitments, liabilities and contractual
obligations for which payment may or will be required beyond the term for which Council
was elected.

Financial Impact:
This financial impact review of facilities for a $15,000,000 Arena and a $20,000,000
Community Center are provided for information and comparative purposes.
Tax rate increase calculations
Capital Cost

Arena

$15,000,000

Potential Community Center Debt


Tax rate increase (per 2016 Roll Total)
Annual payment per $100,000 Residential Assessment (20 year term) $
Annual payment per $250,000 Residential Assessment (20 year term) $

$7,192,154
8.3%
49.00
123.00

Community Center
$20,000,000
$11,692,154
$0
$79
$198

As an example of the impact of a potential $15 million dollar new infrastructure;


3.32% approved 2016 tax rate increase ($19.19 per $100,000 RT)
+ 8.3% tax rate increase for a $15M new infrastructure
= 11.62 % total tax rate increase,
= $68.19 municipal tax increase per $100,000 of residential assessment
The schedule below has been updated include the annual debt repayments as part of
the municipal revenues and excludes the minimum 3% ARL available for potential
emergency debt obligations. The ARL available is reduced below 3% in year 2018
(0.84%) and in year 2021 (1.31%). Therefore with these revisions the municipality is
able to extend additional debentures up to $7.2 million.
A $15 million capital expenditure, with additional reserve transfers from the Phase-In
Levy and Asset Replacement Reserve, would create a potential debenture of
$7,192,154 and would ensure the annual repayment limit is not exceeded. However a
$20 million dollar facility would exceed the ARL and would require approximately $4.5 $5 million of additional funding from other sources.
All cost comparisons include the following seven (7) consistent factors;
Development Charges Revenue contribution of $1,807,846
Reserve Transfer (2016-2017 OLG revenues) of $2,500,000
Reserve Transfer (Phase-In Levy) of $2,000,000
Reserve Transfer (Asset Replacement Reserve) 4 year depreciation value
Repayment over a 20 year term, municipal lending rates from OILC
ARL indexing by the growth forecast for revenue projections
Reduced ARL by $3 million to remove annual OLG revenue
Arena

Capital Cost
Less: Development Charges
Less: Reserve Transfers (2016/17 OLG Revenues)
Less: Reserve Transfer (Phase-In Levy)
Less: Transfer (Asset Replacement Reserve)

Potential Community Center Debt

$15,000,000
-$1,807,846
-$2,500,000
-$2,000,000
-$1,500,000
$7,192,154

Community Center
$20,000,000
-$1,807,846
-$2,500,000
-$2,000,000
-$2,000,000
$11,692,154

Annual Repayment Limit (ARL), as per the Municipal Act, 2001


2018
2019
2020
2021
2022
2023

Debt managed within


the ARL as per the
Municipal Act, 2001

ARL Exceeded
-$300,226
-$119,523
-$163,414
-$208,925

(in grey shaded areas)

Total ARL Exceeded

$0

-$792,087

Any future infrastructure project that would incur debt that exceeds the municipalitys
annual repayment limit (ARL) is not permitted under the Municipal Act and will not be
considered an option by the municipality.
This report does not consider land acquisition in the calculations provided as this
valuation is not available for inclusion at this time.
Attachment:
1. $15 M Debt Capacity (ARL) and Debenture Forecast Schedule (2015-2025)
2. $20 M Debt Capacity (ARL) and Debenture Forecast Schedule (2015-2025)

Respectfully Submitted by,

Reviewed by,

Kimberley Pope
Director of Finance/Treasurer

Yvette Hurley
Chief Administrative Officer

Debt Capacity (ARL) and Debenture Forecast Schedule


Debt Capacity Information is based on Schedule 81 from the 2014 FIR
** modified Based on Removing OLG Annual Revenue of $3,004,115 (from Schedule 10 of 2014 FIR)
Total Own Revenue
$ 7,656,657
Estimated Annual Repayment Limit (25%)
$ 1,914,164
Amortization Factor
Debt Capacity Limit
Interest Rate, Years
3.50%
20
0.001750000
$ 27,204,874
Interest Rate, Years
2.81%
10
0.116096615
$ 16,487,684
Interest Rate, Years
2.16%
5
0.2131446
$ 8,980,590
Debt Capacity (Based on 20 Year)
$
$ 27,204,874
Arena
Water
Wastewater
Fire Station
20 Year Principal Debenture Required
$ 1,707,823 $ 6,590,482 $ 3,500,000 $ 15,000,000
Land Value Unknown
20 Year Principal Debenture Required (Land Acquisition)
10 Year Principal Debenture Required
$ 2,826,800
5 Year Principal Debenture Required
- $ 3,074,395
Committed Debentures $ 4,534,623 $ 9,664,877
Development Charges Revenue (Study 2015)
-$ 1,000,000 -$ 1,807,846
Reserve Transfers (2016-2017 OLG Revenues)
-$ 1,500,000 -$ 2,500,000
Potential Debentures
$ 1,000,000 $ 10,692,154
Internal Reserve Transfer (Phase-In Levy)
-$ 2,000,000
Internal Reserve Transfer (Asset Replacement Reserve)
-$ 1,500,000
$ 1,000,000 $ 7,192,154
Potential Debentures, after Reserve Tsf/Borrowing
Residual Debt Capacity after Debt issued

ARL plus Growth (based on DC Growth Forecast)


Debt Payments (Principal + Interest)
20 Year Debt Payments (P+I) WWW
10 Year Debt Payments (P+I) WWW
WWW
5 Year Debt Payments (P+I)
20 Year Debt Payments (P+I) Fire Stn (2018)
20 Year Debt Payments (P+I) Community Center (2018)Net Available Annual Repayment Limit (ARL)

$ 27,204,874
2015
1,914,164

2017
1,931,202

173,223
85,331

582,295
277,192
385,764

1,659,235

685,951

1,914,164
100.00%

Available Debt Capacity based on:


20 Year Debt
10 Year Debt
5 Year Debt

2016
1,917,789

2015
27,204,874
16,487,684
8,980,590

86.52%

2016
23,530,206
14,260,628
7,767,547

35.52%

2017
9,506,853
5,761,687
3,138,303

2018
2019
$ 1,954,039 2,122,600
$
$
$
$
$

582,661
328,182
451,155
69,595
506,048
16,398
0.84%

583,026
328,182
517,803
69,595
506,048
117,946
5.56%

2018
2019
7,847,620 6,895,200
4,756,099 4,178,879
2,590,575 2,276,172

2020
2,147,250

2021
2,171,537

2022
2,195,825

2023
2,220,112

2024
2,244,400

2025
2,268,687

583,452
328,182
585,918
69,595
506,048
74,055

583,878
328,182
655,291
69,595
506,048
28,544

583,878
328,182
269,526
69,595
506,048
438,596

583,878
328,182
204,136
69,595
506,048
528,274

583,878
328,182
137,488
69,595
506,048
619,209

583,878
328,182
69,373
69,595
506,048
711,612

3.45%

2020
5,921,067
3,588,499
1,954,601

1.31%

19.97%

23.79%

27.59%

31.37%

2021
2022
2023
2024
2025
4,929,061 10,411,697 11,341,054 12,288,283 13,256,363
2,987,288
6,310,074
6,873,316
7,447,390
8,034,101
1,627,130
3,437,001
3,743,791
4,056,480
4,376,053

Debt Capacity (ARL) and Debenture Forecast Schedule


Debt Capacity Information is based on Schedule 81 from the 2014 FIR
** modified Based on Removing OLG Annual Revenue of $3,004,115 (from Schedule 10 of 2014 FIR)
Total Own Revenue
$ 7,656,657
Estimated Annual Repayment Limit (25%)
$ 1,914,164
Amortization Factor
Interest Rate, Years
3.50%
20
0.001750000
Interest Rate, Years
2.81%
10
0.116096615
Interest Rate, Years
2.16%
5
0.2131446
Debt Capacity (Based on 20 Year)
$
$ 27,204,874
Water
Wastewater
$ 1,707,823 $ 6,590,482

Fire Station
$ 3,500,000

20 Year Principal Debenture Required


20 Year Principal Debenture Required (Land Acquisition)
10 Year Principal Debenture Required
$ 2,826,800
5 Year Principal Debenture Required
- $ 3,074,395
Committed Debentures $ 4,534,623 $ 9,664,877
Development Charges Revenue (Study 2015)
-$
Reserve Transfers (2016-2017 OLG Revenues)
-$
Potential Debentures
$
Internal Reserve Transfer (Phase-In Levy)
Internal Reserve Transfer (Asset Replacement Reserve)
$
Potential Debentures, after Reserve Tsf/Borrowing
Residual Debt Capacity after Debt issued

Community
Center
$ 20,000,000

Land Value Unknown

1,000,000 -$ 1,807,846
1,500,000 -$ 2,500,000
1,000,000 $ 15,692,154
-$ 2,000,000
-$ 2,000,000
1,000,000 $ 11,692,154

$ 27,204,874

ARL plus Growth (based on DC Growth Forecast)


Debt Payments (Principal + Interest)
WWW
20 Year Debt Payments (P+I)
WWW
10 Year Debt Payments (P+I)
WWW
5 Year Debt Payments (P+I)
20 Year Debt Payments (P+I)
Fire Stn (2018)
20 Year Debt Payments (P+I)
Community Center (2018)Net Available Annual Repayment Limit (ARL)

2015
1,914,164

2016
1,917,789

2017
1,931,202

173,223
85,331

582,295
277,192
385,764

1,659,235

685,951

1,914,164
100.00%

Available Debt Capacity based on:


20 Year Debt
10 Year Debt
5 Year Debt

Debt Capacity Limit


$ 27,204,874
$ 16,487,684
$ 8,980,590

2015
27,204,874
16,487,684
8,980,590

86.52%

2016
23,530,206
14,260,628
7,767,547

35.52%

2017
9,506,853
5,761,687
3,138,303

2018
$ 1,954,039
$
$
$
$
$

2019
2,201,756

2020
2,226,406

2021
2,250,694

582,661
328,182
451,155
69,595
822,673
(300,226)

583,026
328,182
517,803
69,595
822,673
(119,523)

583,452
328,182
585,918
69,595
822,673
(163,414)

583,878
328,182
655,291
69,595
822,673
(208,925)

-15.36%

-5.43%

-7.34%

-9.28%

2018
7,847,620
4,756,099
2,590,575

2019
6,895,200
4,178,879
2,276,172

2020
5,921,067
3,588,499
1,954,601

2021
4,929,061
2,987,288
1,627,130

2022
2,274,981

2023
2,299,269

2024
2,323,556

2025
2,347,844

583,878
328,182
269,526
69,595
822,673
201,127

583,878
328,182
204,136
69,595
822,673
290,805

583,878
328,182
137,488
69,595
822,673
381,740

583,878
328,182
69,373
69,595
822,673
474,143

8.84%

2022
10,411,697
6,310,074
3,437,001

12.65%

2023
11,341,054
6,873,316
3,743,791

16.43%

2024
12,288,283
7,447,390
4,056,480

20.19%

2025
13,256,363
8,034,101
4,376,053

Presented by Robert Lockhart


The RETHINK GROUP
April 18, 2016
7

Demand for Indoor Recreation Facilities.


What has transpired in the region since 2014 &
what is planned, anticipated & being researched
re: recreation facilities?
The Arena/Community Centre proposed in the
2014 Feasibility Study & the 2011 Master Plan.
Costs & other information associated with a
single & a twin pad arena.
8

Questions & Discussion.


Try to focus in on the preferred facility concept
which will require further contemplation &
definition.
Associated Information
 2014 Arena/Community Centre Needs &
Feasibility Study
 New Community Centre Planning Process
(April 4th PowerPoint presentation)
9

Sources of Information:
 Use patterns of the community centre
 Registration (user groups & programs)
 User Group Survey & workshop (2014)
 2011 Parks & Recreation Master Plan
 Leisure Trends + Best Practices
 Other recent plans & new facilities in the
region
10

Anticipated population growth: 11,560 by


2031 (30% increase over 2011 census
population of 8,850) based on current
numbers in support of the Township OP.
That represents an annual average growth
rate of 1.5% (well above the average of
0.27% since 1991).
11

Unless the rate of population growth greatly


exceeds that of the past few decades, the
profile of the population will continue to
age - for the next 30 years influenced
mostly by the big Baby Boom & Echo
generations.
With most of the new population targeted
for the Millbrook Settlement Area, that will
be the best location for a new community
centre.
12

For the foreseeable future, the need for


arenas in Cavan Monaghan can be
accommodated by one ice pad.
 If demand eventually exceeds local supply,
some nearby arenas have excess
capacity.
 22 ice pads in the region (av. ratio is 1 ice
pad:14,000 pop.). CM: 1 per 9,000.
 In most communities, demand for icebased activities has declined significantly.
13

Facilities such as multi-purpose


program/activity space & an assembly
hall/gymnasium are often provided by
communities like Cavan Monaghan.

An indoor walking/running track could


also be justified, since there is a shortage of
this type of facility in the region &
fitness/wellness is in high & increasing
demand.
14

There is a need for indoor facilities, social


& recreation programming & volunteerbased groups to support the interests of a
large & increasing older adult population
(similar needs for children & youth).
Strong interest has been expressed for a
centralized, multi-facility community
centre.
15

The Townships population will need to be much


larger to support some of the facilities
suggested in the 2011 Parks & Recreation
Master Plan, especially with a fitness centre &
indoor swimming pool located at Fleming.
Re: indoor soccer: Trent Hills & Hamilton Twp.
have just opened indoor soccer facilities &
Peterborough is contemplating one + the
Fowlers Corners facility.
16

For most types of culture & rec. facilities in


the Twp., supply & quality are below the
norm for a community the size &
characteristics of Cavan Monaghan.
The 2011 Parks & Recreation Master Plan
& the 2014 Feasibility Study recommended
a similar multi-facility community centre.
17

 Indoor soccer facilities in Hastings &







Baltimore
New twin-pad arena to be built at Trent
U.
Indoor swimming pool & field house
being contemplated at Trent U.
Peterborough Sport & wellness Centre
could be expanded (gyms, fitness).
Strong demand for an arts centre &
larger art gallery in Peterborough.
18

 Very strong demand for expansion of trail

network in Peterborough.
 Conditions are improving for accelerating
growth within the Peterborough region.

19

 Single-pad NHL-size arena with seating for

200-300, 6-8 adult-size dressing rooms &


other components & features of a modern
arena
 Elevated walking/running track around the
arena
 Ample lobby with a concession, caf-style
seating, ice viewing area, etc.
 Assembly hall/gymnasium
 Multi-purpose activity rooms
 Energy-efficient facility
 Contemporary features

20

If you plan to further pursue this endeavour, it


would be prudent to again consult the wider
community to confirm the components &
features of the facility (both, to research & to
raise awareness).
 An online household survey and/or a
Community Forum to discuss & confirm the
components to inform the conceptual
design process.
 Later, a Community Forum to review the
evolving facility concept.
21

 Required site size: 8 acres (+/-), depending on site &

nature/size of facility

 2014 estimated capital cost: $15.9 - $19.9 million (add

5% per year - $17.5 - $22 million in 2016$)

 Single-pad arena only: $12.5 - $15.5 (2016$)

 Estimated net operating cost: $189,600 in Year One,

decreasing to $146,800 by Year Five.

 Current facility:
 2015 net operating cost: $183,142
 estimated 2016 net operating cost: $151,682
22

Capital Cost: $23-30 million (2016 $) depending on level of fit & finish, features & exact
size to be confirmed, based on more
information.
Operating Costs: may break even, depending
on level of use & rates.
Site requirements: 8-10 acres, depending on
facility footprint, seating, parking requirements &
site characteristics.
23

Questions and Discussion

24

The Township of Cavan Monaghan


By-law No. 2016-29

Being a by-law to confirm the proceedings of the Special meeting of the


Council of the Township of Cavan Monaghan held on the 2nd day of May,
2016
Whereas the Municipal Act, 2001, S.O., 2001, c.25, S.5, S. 8 and S. 11
authorizes Council to pass by-laws;
Now Therefore the Council of the Township of Cavan Monaghan hereby enacts
as follows:
1.

That the actions of the Council at its Special meeting held on the 2nd day
of May, 2016 in respect to each recommendation and action by the
Council at its said meetings except where prior approval of the Ontario
Municipal Board or other statutory authority is required are hereby
adopted ratified and confirmed.

2.

That the Mayor and Clerk of the Township of Cavan Monaghan are
hereby authorized and directed to do all things necessary to give effect to
the said actions or obtain approvals where required, and to execute all
documents as may be necessary in that behalf and the Clerk is hereby
authorized and directed to affix the Corporate Seal to all such documents.
Read a first, second and third time and passed this 2nd day of May, 2016

_____________________
Scott McFadden
Mayor

_____________________
Elana Arthurs
Clerk

25