1. Fluffy to Factual: Financial Tools to Facilitate Sustainable Community Development Part 1 PIBC Kelowna 2016 Planning “Unfiltered” Narissa Chadwick: MCSCD Lourette Swanepoel: STANTEC Consulting Tiina Watt: City of Prince George Kim Fowler: Sustainability Makes Cents

3. Agenda 1. Where are we? 2. How did we get here? 3. Where do we want to be? 4. How do we get there? 5. Questions and Conclusion

5. Where are we? Challenged to meet sustainability/GHG targets

6. Status Quo If we are keeping on this path……. Increasing infrastructure deficits leading to significant reductions in levels of service and increases in property taxes Inefficient management of local government services Disconnection of organizational priorities from its budget Marginalization of land use planning Increased severity of damage from climate change events

7. Where are we?

8. $200 bil infrastructure deficit ($13,870/household). 60% of Canada’s core public infrastructure is owned and maintained by municipal governments. Not able to address existing needs.

9. Where are we? 35% of assets in poor condition – Infrastructure Report Card Sports & Rec. Declining Public Transit Unavailable Stormwater Declining Wastewater Declining Potable water Declining Buildings Declining Bridges Declining Roads Declining 26%32%21%22% 25%17%19% 17%

10. How did we get there? - Reactive Waiting until asset fails or requires major renewal Stantec Consulting

11. Where are we? Assets vulnerable to climate change

13. How did we get here? - Reactive Waiting until asset fails or requires major renewal Stantec Consulting

14. How did we get here? - Siloed Attracting businesses & people ECON. DEV Population Projections Land Supply PLANNING Servicing Land Conventional Standards Operations (and maintenance?) in silos ENGINEERING $ for new capital costs $ for operations (and maintenance?) FINANCE Huh? Nothing to do with me Told you so With what money??

15. How did we get here? – Short-term Supporting land-use decisions that do not consider the comparative or lifecycle infrastructure costs

16. How did we get here? Failing to fully recover costs and fees Stantec Consulting

18. Where do we want to be? Efficient, effective, sustainable and resilient service delivery

19. Where do we want to be? Meet sustainability targets, effectively work toward meeting GHG targets, and integrating natural and built environments

20. Where do we want to be? Fully manage infrastructure assets to sustain and improve quality of life, reduce deficits & debt, and attract business and investment.

22. How do we get there? Proactive Long-term Integrated Triple bottom line Lifecycle costing Connect land-use and finance

23. Mechanisms of change Long-term Fiscal Management Responsible Growth Management Effective Asset Management

24. How do we achieve sustainable service delivery? Effective Asset Management Do we still need it? What do regulators require? What are public’s expectations? What are the consequences? Where are we vulnerable? What condition is it in? What do we need to do to it and when? How much money do we need? What do we own? Where is it ? What is it worth ? INVENTORY CONDITION LEVELS OF SERVICE RISK

25. Effective Asset Management

27. Grow Where You Can Afford

28. CLIC -Overview

29. Insert Your Company Logo Here Inner core : High density Inner core : Medium density Inner suburb : Medium density Inner suburb : Low density Outer suburb: Medium density Outer suburb: Low density Scenarios

30. Unit Costs & Revenues

31. Development Characteristics

32. Cost Allocation Cost Savings and Replacement User Defined Costs

33. Results

35. Compare Scenarios

37. Initial Capital Cost Lifecycle Cost Per Capita/Household Cost The CLIC Story

38. CLIC

39. Use Financial Tools and Incentives Revealing: CLIC Asset Management Eco-Asset Management Next Stage: DCCs RTE User Fees & charges Self funding utilities Local area service tax Long-term Fiscal Management

42. Take Home 1.Engage with Asset Management Process & involve your community 2.Understand the economics/financial leg of the sustainability stool and promote a financial perspective for land-use 3.Understand how different financial tools can be used to help cost recover infrastructure service and maintenance and incent infill to reduce costs over time

43. Acknowledgements Funding Partners: Visuals: OSM Illustration susanmilley.com

44. Contacts Narissa.Chadwick@gov.bc.ca Lourett.Swanepoel@stantec.com Tiina.Schaeffer@princegeorge.ca Kim@SMCteam.ca

45. FTP site link: ftp://s0518123858:2346891@ftptmp.stant ec.com ftp://s0518123858:2346891@ftptmp.stant ec.com Expiry Date: 5/18/2016 To Access Documents

46. References CLIC and other Tools: http://www.cscd.gov.bc.ca/lgd/greencommunities/sustain able_development.htm Asset Management BC: http://www.assetmanagementbc.ca/ http://www.assetmanagementbc.ca/ Eco-Asset Management: http://www.gibsons.ca/eco- assetshttp://www.gibsons.ca/eco- assets

47. Location: Pennask Focused working session Details on Financial tools See you there!! Part 2