2023 Proposed Capital Works Budget as Part of Ten-Year (2023 - 2032) Program

The City practice for 2023 allocation of funds is still based on the Board capacity to spend but is linked more closely to the City's ability to fund the projects with debt. Annually, staff review the 10-year capital plan; this annual review procedure allows Exhibition Place to adjust its current State of Goods Repair (SOGR) program each subsequent year based on changing and operational needs, building/audit assessments, legislative changes, mandates, and priorities. Throughout the budget process Exhibition Place staff worked closely with City FPD in developing the budget. As part of the budget process, staff completed their due diligence by performing three (3) building assessments in 2022 on the Beanfield Centre, General Services Building, and Enercare Centre. The building assessments are a systematic inspection, review, and report on the state of our buildings, and is done annually on a rotating basis with all our buildings. More importantly with the debt funding constraints from the City, this is of great importance to help prioritize our plan as building assessments will indicate whether we need to do repairs in the short term, as well as what will be required in the longer term such as years 5-10 or even years 11-15. Exhibition Place staff will submit the 2023 Capital Works Budget to City FPD to meet the City Manager September 16, 2022, mandate; however, due to the budget submission schedule, City FPD understands that the budget is subject to Board approval and that the Board reserves the right to make changes to the Capital Works Budget content. Exhibition Place staff will notify the City of any changes or directions made by the Board. In accordance with City guidelines for capacity to spend, the City's ability to fund, building assessments and SOGR priority, a total of $22.131 million gross is recommended for 2023 Capital budget. This includes: a. $1.000 million for revitalization of Centennial Square and the surrounding areas with 100 percent cost recoveries from the Exhibition Place Green Space reserve fund held by the City. b. $0.216 million previously approved project for Food Building boilers, hot water tanks, water distribution and sanitary systems; 50 percent of which is funded by CNEA as per Board's Master Agreement provisions with CNEA. c. $0.200 million in 2023 and $0.500 million in 2024 (a total of $0.700 million over two years) for New Brunswick Way Improvement/Road Widening to support Phase-2 Hotel and Venue development. d. $2.000 million previously approved project cash flow for high voltage utilities upgrade. e. $18.715 million for various upgrades within existing buildings, parking lots and roads grounds wide, all funded by debt. This includes resubmission of $2.190 million initially approved by City Council for 2022 projects budget but later got postponed due to City funding constraints. In summary, the total budget cash flow for Above the Line Capital Program 2023 (Sections A and B in Appendix A), including previously approved and new projects is $22.131 million. This includes funding (recoveries) from CNEA and Exhibition Place Green Space reserve fund of $1.108 million and City net debt funding of $21.023 million. Even with the additional funding being recommended, the Net Accumulated Backlog at the end of 2023 for Exhibition Place stands at $54.885 million.

2. The Board direct the Chief Executive Officer to submit the 2023 Budget and any changes or directions by the Board to the City Financial Planning Division as part of the 2023 Budget Process.