preparing a budget for an economic development project …
TRANSCRIPT
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Agenda
• Background • Importance of Budgeting for a business plan • Feasibility and Planning Stage • Construction Stage • Operations and Maintenance Stage • Post Completion Review
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ATCO Designs for Aboriginal Communities
Educational Facilities Classroom additions
Daycares Schools
Residential Solutions Multi-family apartments Single family housing
Elders centres
Commercial Spaces Office complexes
Retail facilities Gas stations Motel/hotel
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ATCO Designs for Aboriginal Communities
Health Care Diagnostic centres
Medical clinics Hospitals
Recreational Complexes Indoor soccer facilities
Hockey arenas Gymnasiums
Community Infrastructure Civil works (roads, sidewalks)
Water/sewer Power/Gas
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Importance of Budgeting for a Business Plan
• Backbone of a business plan • Plan what you want to do • Use limited resources wisely • Allows you to monitor results • Take corrective action
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• Consult with community • Provide industry background • Best design and location • Provides credibility
Use of Consultants
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Project Development
• Mission • Objective • Goals • Timetable • Products
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Feasibility Study - Grocery Store
• Customers • Local and regional competition • Location within community • Size and departments
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Feasibility Study - Grocery Store
• Marketing plan and promotions • Suppliers • Management and staffing
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Construction Stage
• Labour availability • Construction timeline • Coordinate work • Timing of payments • Financing • “Murphy was an optimist”
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Construction Budget - Gas Station
• Entrance road • Fuel pumps • Display signage • Storage tanks • Convenience store
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Construction Budget - Elders Lodge
• Number of units • Size of units • Accommodate wheelchairs or walkers • Flexible communal amenity space • Monitoring station for staff • Automatic door opener
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Operations Stage
• Purpose of facility • Monthly budget • Short and long term forecast • Financial Statements
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Other Considerations
• Management team • Method of operation • Annual budget • Monthly reporting
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Operations Stage - Revenue
• Usage fees • Competition • Government grants
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Operations Stage – Operating Costs
• Materials and supplies • Salaries and benefits • Utilities • Travel • General and administrative
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Operations Stage – Operating Costs
• Fixed Vs. Variable Cost • Costs in local area • Inflation • Seasonality
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Operations Stage – Other Costs
• Depreciation • Interest expense • Debt repayment
– Debt covenants • Capital replacement reserve • Operating cost reserve • Income taxes
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Recreation Center
• Arenas • Gymnasiums • Community center
Hockey Arena, Fort McKay First Nation Gymnasium, Halalt First Nation
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Post Completion Review
• Compare actual costs to budget • Schedule compared to budget • Facility functionality • Suppliers’ performance • Day-to-day operations • Lessons learned
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Conclusions • Budgeting is important for planning and reviewing
performance • 3 stages of a project
– Feasibility study – Design and construction – Operations and maintenance
• Need different entity to help on each stage – Consultant for feasibility study – Design and build construction company – Internal staff or outsource for O&M
• Should complete a post completion review
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Thank you for your time and attention !
Questions ?
• Dan Rochon, CA [email protected] • Controller (403) 292-7799