Capital Summary - Quarter 4 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 (in thousands of dollars)

The capital budget managed by Niagara Region has decreased by $28,005 since Q3 2016. The decrease is primarily due to closures and budget reductions of capital projects ($32,297), partially offset by an increase of $4,293 in transfers to capital projects.

16 capital projects, with budgets totalling approximately $58,4716 (levy $55,631 / rate $2,845) remain uninitiated at December 31, 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 *	$ 602,568	$ 333,115	$ 935,683
Council Approved 2016 Budget	104,577	60,040	164,617
Projects Closed through CSD 01-2016	(65,391)	(29,574)	(94,965)
Gross Budget Adjustments	5,013	3,913	8,926
Transfer from Capital Variance Project	8,048	4,241	12,289
Budget Reductions on active projects	(389)	-	(389)
Projects Closed	(43,462)	(44,501)	(87,964)
2016 Total Adjusted Budget (excluding Capital Variance Project) at July 21, 2016	$ 610,963	$ 327,234	$ 938,197
Gross Budget Adjustments**	911	13	924
Transfer from Capital Variance Project**	953	295	1,248
Budget Reductions on active projects**	(3,482)	(1,655)	(5,137)
Transfer to Operating**	(450)	-	(3,948)
Projects Closed**	(8,140)	(3,690)	(11,830)
Closed Projects Added back for Reporting Purposes	3,948	-	3,948
2016 Total Adjusted Budget (excluding Capital Variance Project) at October 23, 2016	$604,703	$322,198	$926,900
Gross Budget Adjustments**	3,653	27	3,680
Transfer from Capital Variance Project**	3,653	27	3,680
Budget Reductions on active projects**	(1,020)	(1,856)	(2,876)
Projects Closed**	(25,171)	(4,251)	(29,422)
2016 Total Adjusted Budget (excluding Capital Variance Project) at December 31, 2016	$582,222	$316,674	$898,896

• * 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