Capital Summary - Quarter 2 Financial Update (2016)

The Corporate Services department develops the Capital Financing Strategy and Capital Budget guidelines in co-ordination with department and board input and in alignment with Council objectives and corporate policies. The Corporate Services department is responsible for the following: preparing the consolidated capital budget and forecast based on the requests of departments and boards; co-ordinating capital initiations, financing, closure and budget reduction of capital projects approvals and reporting; supporting tangible capital asset accounting in accordance with the Capital Asset Management Policy; and reporting on the consolidated activity of the capital program.

The capital budget represents priority projects as determined by the departments and boards and approved by Council. Following capital budget approval, projects are initiated based on department requirements and timing to complete projects. Project managers within departments and boards administer the projects and maintain the related tangible capital asset information. Project managers are accountable for monitoring the capital projects within the capital program and taking corrective action, when necessary, including both reporting on significant variances as well as taking part in the capital closure and budget reduction of capital projects process.

Capital Budget Reconciliation

The capital budget managed by Niagara Region has increased by $2.5 million since 2015 year-end. The increase is primarily due to the $2.1 million increase from the initiation of the 2016 capital budget ($164.6 million) and additional project funding ($21.2 million) , offset by closures and budget reductions of capital projects, ($183.3 million).

Eighteen capital projects, with budgets totalling $61.5 million (levy $57.7 million / rate $3.8 million) remain uninitiated at July 21, 2016 . A summary of the levy and rate impact of Niagara Regions total capital budget during the year is presented below:

Capital Budget Reconciliation	Levy Programs	Rate Programs	Adjusted Budget
2015 Total Adjusted Budget (excluding Capital Variance Project) at December 31, 2015 *	$ 602,567,523	$ 333,115,108	$ 935,682,631
Council Approved 2016 Budget	104,576,739	60,040,150	164,616,889
Projects Closed through CSD 01-2016	(65,390,730)	(29,574,029)	(94,964,759)
Gross Budget Adjustments **	5,012,880	3,913,406	8,926,286
Transfer from Capital Variance Project **	8,047,881	4,240,868	12,288,749
Projects Closed **	(43,462,492)	(44,501,290)	(87,963,782)
Projects Closed **	(43,462,492)	(44,501,290)	(87,963,782)
Budget Reductions on active projects ***	(388,763)	-	(388,763)
2016 Total Adjusted Budget (excluding Capital Variance Project) at July 21, 2016	$ 610,963,038	$ 327,234,213	$ 938,197,251

• * Balance updated from the December 31, 2015 year-end financial update to reflect closures and adjustments previously approved
• ** Refer to supporting schedules for additional information
• *** Budget reductions for Structural Rehabiliation - Glenridge Bridge over CNR Tracks ($250,000) and Annual - Culvert Replacement ($138,800) were completed during the period