Scotiabank. Interest on the line of credit is set at a rate, which is based off the Bank of Canada prime rate, which is currently 2.45%.

Capital Plan Implications

The semi-annual capital variance reports are completed based on March 31 and September 30th month ends. The impact of the pandemic on the capital projects is not likely to be understood until end of May. In addition, many of those involved in putting this report together are otherwise focused on tracking pandemic costs and other essential services. As such, Administration recommends that the March 31 capital variance report be changed to May 31 thereby allowing the necessary time for the impact of the pandemic to be better understood and so that the approach to the report may be more focused on larger active projects as well as capital expenditures. Administration will consider what if any Capital Project Budget changes could be actioned to allow for mitigation of the impacts of the COVID 19 circumstances. Any such recommendations would be presented to City Council for consideration and approval.

Asset Planning is developing information to compare 2019 versus 2020 trends in monthly capital expenditures as we begin to move into the construction season. The recent change in the essential services definition has put some capital projects on hold. However, several of the larger capital projects remain active as they meet the essential services definition. As tenders for these projects are released, there is a risk that due to social distancing and pandemic related requirements, construction costs may be higher than originally budgeted for projects.

As noted above both YQG and the Tunnel have experienced significant revenue loss. For YQG their capital projects are currently identified as being self-funded as a result of their profitability over several years. There is a risk that they may not be able to sustain these investments, which will result in potential reduction in the projects they are able to proceed with or may result in requests for City funding to sustain their current capital program.

Asset Planning continues to monitor potential funding opportunities, which both the Federal and Provincial governments may provide to assist municipalities. Should programs encourage investments in major assets, as one of the funding streams to help municipalities and create an economic stimulus, the City will need to ensure we continue to be able to leverage capital funding for any municipal matching funding for such programs. It is important to balance fiscal restraint with the ability to leverage funding wherever possible for any stimulus funding which may come forward.