Capital Summary - Quarter 2 Financial Update (2017)

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 increased by $176,298 since Q4 2016. The increase is primarily due to the approval of the 2017 Capital Budget ($206,000), coupled with transfers to capital projects ($13,072). These increases were partially off-set by capital project closures and budget reductions ($42,774).

20 capital projects, with budgets totalling approximately $101,848 (levy $99,003 / rate $2,845) remain uninitiated at June 30, 2017. 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
2016 Total Adjusted Budget (excluding Capital Variance Project) at December 31, 2016 (1)	$581,708	$318,399	$900,107
Council Approved 2017 Budget	143,077	62,923	206,000
Gross Budget Adjustment	5,346	614	5,960
Transfer to Active Capital Projects	2,250	3,662	5,912
Budget Reductions on Active Capital Projects (2)	(4,500)	(3,000)	(7,500)
Transfer from Operating	74	22	96
Projects Closed	(23,121)	(12,153)	(35,274)
Budget Adjustments on Active Capital Projects	1,045	-	1,045
2017 Total Adjusted Budget (excluding Capital Variance Project) at July 17, 2017	$705,879	$370,467	$1,076,346

• (1) Incorporates adjustments made at year end subsequent to publication of financial update.
• (2) Budget reductions do not necessarily reflect surplus funding as not all project budgets are funded in advance.