2026-2027 Annual Facilities Grant Spending Plan

Statement Watch

JESSE GRESSLEY- Thank you. So the Ministry of Infrastructure provides annual facilities grant AFG funding for projects required to maintain the facility asset through anticipated economic life and to prevent premature deterioration of these assets. The annual facilities grants can be used for upgrading or replacing existing facilities components enhancing the service potential of an existing capital asset or correcting a deficiency, for lowering the associated operating cost of an existing capital asset, or extending the life of an existing capital asset beyond its original anticipated life expectancy. Facilities within the VSB are complex and aging, as was noted in the previous item, and funding has not kept pace with the accumulation of necessary maintenance within our facilities. Many of the schools are beyond their original intended useful life. And on an annual and ongoing basis, a significant amount of district budget is spent on operations and maintenance and addressing unplanned work that responds to maintaining service. The deteriorating building conditions result in escalating deferred maintenance costs, which is a future financial liability for the district. The prioritization of funding becomes more challenging with the need to focus on critical services with less ability to adapt undertake proactive work. Supply chain challenges and inflation have continued to see dramatic cost increases and materials in materials and services. Tariffs have further reduced our spending power when procuring materials and this will impact tender bids for upcoming minor and major capital projects as we move forward. At this point, there's no indication that the current cost challenges will decrease in the coming years. So when we set out to build the plan, we do look at two sets of criteria. The first, the primary criteria consider safety, operational criticality, educational delivery, deferred maintenance, obsolescence, and service expectations. Secondary criteria consider whether there is going to be major capital alignment, the capacity, the economic return, and skills continuity. Preparation of the AFG spending plan is informed by the building condition assessments, our seismic vulnerability of each building, ongoing maintenance and lifecycle costs, and priorities that emerge through the 2026-2027 financial planning engagement process. The plan is prepared by maintenance and construction department but is done in collaboration with operations and education planning groups. One of the key areas of focus is around safety compliance. This key focus is to address fundamental compliance related to the safe operations of existing systems.

These include things that are truly fundamental, like fire alarms, sprinkler systems, fire suppression systems, security systems, venting and boiler improvements. These items ensure that current systems are maintained to address safety compliance and support the ongoing safe operations of our facilities. Of note, there are several Telus fiber upgrades that are identified as well as improvements to our security connectivity across our aging facilities. Another key area of focus is around accessibility improvements. Learning Services collaborates with the school communities and community partners to identify essential projects for each upcoming school year. Essential projects are deemed necessary for a student to access and participate in their school and these are put forward each year. All six projects that were identified as part of this process are part of this year's or sorry of next year's AFG. These initiatives will meet the known accessibility requirements of students ensuring supportive and inclusive educational environments. So on the slide you can see the allocation of funds across the various categories. A full list of the projects can be found in attachment A. It is important to note that this is a large project list. It goes into a great level of detail. And we do evolve the projects. They are subject to change as we move through the year. And due to trades availability, material availability, procurement processes, there are some modifications that take place through the year. But these categories in front of you remain consistent with the spending occurring within each of those buckets throughout the year. Thank you.