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2014 Draft Rate Supported Operating Budget and 2014 Draft Capital Budget and Forecast

INDEX

Water and Wastewater Management

Page Number

Treasurer’s Report 1 – 34

Appendix A1 – Operating Water 1 – 12

Appendix A2 – Capital Water 1 – 7

Appendix B1 – Operating Wastewater 1 – 12

Appendix B2 – Capital Wastewater 1 – 8

Appendix C – Sources of Financing 1 – 21

Appendix D – User Fees Water and Wastewater 1 – 2

Appendix E – Full Time Equivalent Chart 1

– BMA Comparison of Water/Wastewater Costs 3 – 4

TO: Chair and Members Corporate and Emergency Services Committee Engineering and Public Works Committee FROM: Julie Stevens, CPA, CA, Commissioner of Finance and Corporate Services A.J. White, P. Eng., Commissioner of Engineering and Public Works DATE: November 20, 2013 SUBJECT: 2014 Draft Water and Wastewater Operating Budget and 2014 Draft Water and Wastewater Capital Budget and Forecast REPORT NO: CES-12-2013-1 ____________________________________________________________________________________________________________________ RECOMMENDATION THAT the 2014 Draft Water and Wastewater Operating Budget and 2014 Draft Water and Wastewater Capital Budget and Forecast as presented in Report No. CES-12-2013-1 be adopted; AND THAT the 2014 rate structure for water and wastewater services and miscellaneous charges as outlined in Appendix D of Report No. CES-12-2013-1 be adopted and become effective January 1, 2014. ORIGIN Prudent management as well as section 290 (1) of the Municipal Act requires that each year municipalities prepare and adopt a budget for the purposes of the municipality including amounts sufficient to pay all debts falling due within the year, amounts required to be raised for sinking funds and amounts required for any board, commission or other body. SUMMARY Committee and Council’s review of the 2014 Draft Water and Wastewater Operating Budget and 2014 Draft Capital Budget and Forecast as attached to Report No. CES-12-2013-1 represents formal compliance with section 290 (1) of the Municipal Act.

1

In order to assist the reader, the ANALYSIS section of this report has been divided into the following major sub-sections, each containing expanded analysis and information in the subject area:

Background 2014 Draft Operating Budget – Water 2014 Draft Operating Budget – Wastewater Water and Wastewater Revenues – Analysis Impact on Typical Residential User 2014 Draft Capital Budget and Forecast – Water 2014 Draft Capital Budget and Forecast – Wastewater Capital Financing Reserves and Reserve Funds Debt and Debt Capacity

The combined user fees and urban service area charges on a typical residential customer has increased by 1.6% or $2.43 per month. This increase is higher than the budget guideline of 0.8%. A projected decrease in consumption of 2.1% is the reason for not meeting the budget guideline. The remaining increase is the result of a general restraint in year-over-year operating costs of 0.8% and a modest increase in the total debt and reserve contributions related to the capital programs of 1.4%. The budget has been held below the Reed Construction Index which has been averaging 2.2% in 2013. Many operating costs within the water and wastewater operating budget and all project costs within the capital budget and forecast will rise in accordance with the Reed construction price index.

In 2010, the budgeted consumption figure was set at 3.2 million cubic metres. This was further reduced by 150,000 cubic metres per year in 2011 and again in 2012. The 2012 budget assumed a total consumption level of 2.9 million cubic metres. Due to dry summer conditions experienced in 2012, actual consumption targets were met. However, consumption in 2013 has declined and is projected to be 135,000 cubic metres short of budget. Staff is assuming the consumption for 2014 will remain at the four year average of 2.84 million cubic metres. This represents a consumption decrease of 60,000 cubic metres and accounts for 0.9% of the combined rate increase to the typical residential customer of 1.6%.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Cubi

c M

etre

s

Year

Water Billed Consumption by Year

2

ANALYSIS Background The District Municipality of Muskoka is responsible for the purification and distribution of potable water to users in nine communities and for ensuring that the appropriate collection and treatment of wastewater occurs in these communities as reflected in the following table. The water system includes intakes, water filtration plants, reservoirs, pumping stations, watermains, fire hydrants and water meters. The wastewater (sewage) system includes treatment plants, outfalls, lagoons, pumping stations and sewer mains. Both systems’ operating and capital costs are funded from a combination of user rates and special urban service area charges. The following table shows the current number of customers (number of accounts) connected to the respective systems.

Community

Water Treatment & Distribution

Wastewater Collection & Treatment

Bracebridge 3,962 3,170Gravenhurst 2,939 2,434Huntsville 3,267 3,048MacTier 277 207Bala 439 353Port Carling 377 353Port Severn 129 128Baysville 131 129Port Sydney 34 0Total Customers 11,555 9,822

In 2013, the customer base increased by 65 and 114 for the water and wastewater systems respectively. The majority of the growth continues to occur within the three main urban areas of Bracebridge, Huntsville and Gravenhurst. Despite the growth, the table highlights the fundamental challenge in maintaining competitive and affordable rates in an environment of increased regulatory requirements and escalating construction costs, with very few customers to support critical infrastructure in each of the nine distinct communities. If the rate discrepancy is too large, issues of competitiveness and affordability begin to appear. The result is that those smaller systems, without an adequate customer base to absorb these costs, have disproportionately higher water and wastewater rates than large urban centres (refer to Appendix E, Municipal Study 2012 as prepared by BMA Management Consulting Inc.). The District Municipality of Muskoka by virtue of the ratio of treatment facilities to customers is considered one of these smaller systems.

3

User Rates The District Municipality of Muskoka has one of the most commonly used rate structures across Ontario. The District’s current rate structure includes a fixed monthly service charge and a uniform volumetric charge based on consumption for both water and wastewater. Volumetric Costs – Volumetric costs vary with the consumption of water over a specified period of time, such as day, month or year, in contrast to the amount of water demanded at any time. Typically, costs associated with volume consumed are included in the volumetric cost which is comprised of the purchase of water, water supply and portions of the pumping, distribution, reservoir and administration costs. Fixed Costs / Customer Related – Fixed costs are costs related directly to the customer’s water service connection and to billing the customers on a monthly basis. Typical functions included under this category are listed below:

meter repair and replacement billing and collection meter reading service connection and supply overhead / general administration financing costs capital related to meter replacement

Caution is advised in attributing too much to fixed costs. A high allocation to the fixed charge is generally not practical since it results in a volumetric charge that is too low relative to the fixed charge. This is not recommended if water efficiency is an important objective in rate setting. By allocating a higher proportion of the overall costs to a fixed charge, there is also a negative impact on low volume users which must be considered. Conversely, while a high allocation of fixed costs to volume will promote water efficiency, there is increased revenue risk brought about by the increased reliance on the volumetric charge to recover fixed costs. In addition, a high allocation of fixed costs to volume does not meet the equity criteria, as these costs would exist regardless of the volume consumed and should therefore be paid for across the entire customer base. Urban Service Area Levies Firefighting – Water Urban Service Area The Urban Service Area A levy for water averages 30% of the water system’s total net costs, which is consistent with the cost attributable to firefighting infrastructure. The rationale being that firefighting is a service to property, not a water or wastewater service, and therefore the property tax base should pay the excess costs of water systems that result from firefighting needs. Wastewater Urban Service Area The Urban Service Area A levy for wastewater is equal to the amount required to fund net capital financing costs. The net capital financing costs are equal to the annual debt repayments plus the contribution to the capital reserve fund less any local improvement charges collected.

4

% Share of Revenues by Source In terms of relative importance, user fees are a significant source of funding for both the water and wastewater systems at 69% and 47% respectively. The second largest source of funding is from special service area levies at 29% for water and 50% for wastewater. The following two graphs demonstrate the relative share of funding by major revenue source as included in the 2014 Draft Operating Budget. The graphs also make a distinction between variable revenues (those revenues that can fluctuate by consumption) and fixed revenues (those revenues that are predictable and not fluctuating with consumer demands).

The relative split between fixed and variable revenues is 56% / 44% for water and 58% / 42% for wastewater. Although the total fixed revenue sources are similar, there is a significant variance between the two systems in terms of the relative share of the individual fixed revenue sources. For example, water urban service area charges account for 29% and water fixed or flat rate charges account for 25%, versus wastewater with 50% and 5% respectively. The reason for the variance is that, in the case of wastewater, the urban service area charges fund the long-term financing and reserve contributions, while in the case of water, this funding is shared between the urban service area charges and user fees. It is important that the correct balance between these types of revenue sources be kept relatively current and in sync with the type of expenditures required to maintain services. The degree to which the financial health of services is related to the consumption levels is clearly illustrated in the operating results of the systems over the past five years. A review of the expenditures later on in this report will show that a significant portion of the total cost incurred in maintaining the systems is fixed in nature and does not vary significantly with the volume of water or wastewater treated.

Urban Service Area50%

Local Improvements

3%

User Fee - Flat Rate Charges

5%User Fee -Volumetric

Charges41%

Other Revenues

1%

Other42%

Wastewater: "Fixed Revenue" vs. "Variable Revenue"

Urban Service Area29%

Fire Protection Charges

1%

Local Improvements

1%

User Fee - Flat Rate Charges

25%

User Fee -Volumetric

Charges42%

Other Revenues

2%

Other44%

Water: "Fixed Revenue" vs. "Variable Revenue"

5

The following sections highlight the major factors influencing the 2014 Draft Water and Wastewater Operating Budget and 2014 Draft Capital Budget and Forecast. 2014 Draft Operating Budget – Water Overall, the 2014 Draft Operating Budget – Water, attached as Appendix A1, if approved would result in a 0.8% increase or $0.50 per month increase for a typical residential property owner connected to the water service. All of this increase is attributed to the user fee portion of the costs and is a result of a projected decrease in water consumption by 2.1%.

The budgets for both the water and wastewater systems can be broken down into two main functional areas: operational, which is comprised of administration, treatment and distribution; and non-operational, which includes corporate support services and financing / reserve contributions to pay for proposed capital works and/or repay debt used to finance completed capital works. The split between non-operational expenditures and operational expenditures typically range from 50/50 to 60/40. The District Municipality of Muskoka’s proportion of fixed costs has remained relatively consistent at 52% in 2014 (53% in 2013) and is reflective of the stabilization in the infrastructure financing costs in 2014.

The relatively fixed nature of the support services demonstrates the need to balance the amount raised by fixed revenue and variable revenue sources to match the relative split of fixed and variable expenditures. Currently, when comparing revenues and expenses that are fixed in nature, 56% of the revenues are fixed versus 52% of the expenditures. Without this balancing, the financial consequences of reduced consumption levels over the last several years would have been significantly greater.

Finance Charges/Reserves

48%

Support Services4%

Administration 12%

Distribution12%

Treatment 24%

Other48%

% Share of 2014 Water Budget by Functional Area

6

The following graph shows the budget increases (decreases) by expenditure category and is followed by a table outlining the reasons behind those changes.

(400,000)

(300,000)

(200,000)

(100,000)

0

100,000

200,000

300,000

Personnel Employee Related

Expenses

Materials & Supplies

Purchased Services

Debt Repayment

Transfers to Reserve Funds

Net Internal Service Charges

Base Budget Adjustments 91,600 1,500 18,001 (96,500) (301,235) 300,000 9,198

Water: Year-over-Year Budget Increases (Decreases)by Expenditure Category

In summary, total expenditures increased by $22,564 or 0.2%. The Budget Drivers table on the following page provides a detailed summary of each expenditure category. The largest component of the increase is Personnel costs which have grown due to the wage settlement and a reduction in the recovery of costs from capital projects. There has been no change to the overall staff complement. In order to meet budget guidelines, this increase in Personnel costs is offset by a reduction in Purchased Services of $96,500, most notably in the subcontractor line that was reduced by $55,460. In previous years, the escalation in electrical costs with its “Global Adjustment” surcharge was noted as a major budget driver. In 2013, electrical costs have not been a factor and a rate decrease is projected in the Materials & Supplies category. The existing debt payments will decrease in 2014. This amount has been transferred to a reserve fund contribution, which will not impact the total water levy.

7

Budget Drivers - Water

Expense Category Item $ Increase (Decrease)

Total $ Increase

(Decrease)

Personnel Annualized wages and benefits are based on projected costs and 2014 planned work schedules. The increase includes a wage settlement and a reduction in recovery from capital projects. 91,600

Employee Related Expenses Increased cost of Safety Equipment. 1,500 Materials & Supplies Inflationary increase in Chemical Supplies. 2,100 Decreased Utility costs based on a drop in Electricity rates. (22,330) Increased Property Taxes. 16,100 Increased Supplies, primarily for Meter replacements and Equipment Repair Parts. 22,131 18,001 Purchased Services Decreased Subcontractor costs to reflect scheduled maintenance and repairs. (55,460) Decreased Advertising costs. (3,940)

Decreased costs for External Lab Tests, mainly offset by increase under Wastewater to re-align budget to actual testing levels. (17,870)

Decreased Communications costs. (9,730) Decreased Scada costs. (10,000) Other miscellaneous adjustments. 500 (96,500) Finance Charges/Reserves Decreased scheduled annual Principal and Interest payments on existing debt. (301,235) Increased Transfer to Reserve. 300,000 (1,235) Net Internal Service Charges Increased Fleet, offset by decrease in Wastewater. 15,330 Increased Insurance. 3,700 Finance Services allocation. 13,000 Drafting Services allocation. (9,262) Corporate Services and Engineering Administration charges. (19,159) Computer Services increase due to addition of one system. 5,100 Other miscellaneous services. 489 9,198 Subtotal 22,564 Revenue Increases (12,082) Total Net Levy Increase 10,482

8

The following graph highlights the annual budgets by expenditure category for the years 2012 through to 2014. This graph also illustrates the dominance of Debt Repayment and Transfer to Reserve Funds, which account for 48.5% (49% in 2013) of the total expenditure budget. By stabilizing this component of the budget, user fees and urban service area rates will stabilize. See the Impact on Typical Residential User and Capital Financing sections to illustrate the impact of the capital plan financing on projected user fees and urban service area charges.

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000

Personnel

Employee Related Expenses


Purchased Services

Debt Repayment



Personnel Employee Related Expenses Materials & Supplies Purchased Services Debt Repayment Transfers to Reserve

FundsNet Internal Service

Charges2014 1,931,300 60,250 1,849,470 607,160 2,964,723 2,600,000 1,456,3692013 1,839,700 58,750 1,831,469 703,660 3,265,958 2,300,000 1,447,1712012 1,859,900 58,000 1,780,265 650,876 3,264,602 2,300,000 1,374,990

Water: Year-over-Year Budget by Expenditure Category

9

2014 Draft Operating Budget - Wastewater The 2014 Draft Operating Budget – Wastewater, attached as Appendix B1, if approved would result in a 2.2% increase or $1.93 per month increase for a typical residential property owner connected to the wastewater service. Of this total, $0.87 relates to the user fee portion of the costs and is attributed to a reduction in consumption of 2.1%. The urban service area component of the charge would increase by $1.06 and is a result of an increase in debt financing and reserve contributions of 2.5%.

The wastewater budget, similar to water, can be broken down into operational and non-operational functions. Similar to the water system, non-operational expenditures are greater than operational costs. In 2014, “fixed” non-operational costs represent 57% (56% in 2013) of the budget as compared to 58% of the revenues which are derived from stable sources of revenue (i.e. special tax levies and basic meter charges).

The following two graphs highlight the functional areas and types of expenses that are contributing to these increases. Similar to water, Financing/ Reserve Transfers make up the lion’s share of the net expenses at 54% (53% in 2013). Delays and the deferral of major capital works has resulted in the postponement of significant funding commitments until around 2018. In the short term, debt servicing costs are trending downward. As a result, this has allowed for proportional increases in contributions to the Wastewater Capital Reserve fund without significantly impacting on the urban service area charges as shown in the projected urban service area charge for 2014. These added contributions will moderate future risk exposure to the financial markets, as well as budgetary increases in the annual debt servicing costs.


54%

Support Services3%

Administration 9%

Collection5%

Treatment 29%

Other43%

% Share of 2014 Wastewater Budget by Functional Area

10

The following graph shows the budget increases (decreases) by expenditure category and is followed by a table outlining the reasons behind those changes.

(300,000)

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

Personnel Employee Related

Expenses


Purchased Services

Debt Repayment



Base Budget Adjustments 77,000 1,500 19,090 (37,190) (214,599) 400,000 (47,943)

Wastewater: Year-over-Year Budget Increases (Decreases)by Expenditure Category

In summary, total expenditures increased $197,858 or 1.4%. The Budget Drivers table on the following page provides a detailed summary of each expenditure category. As noted in the Water Operating Budget commentary, Personnel costs have increased reflecting a wage settlement and a reduction in the recovery of costs from capital projects. There has been no change to the overall staff complement. In order to mitigate these increases, the Purchased Services budget was reduced by $37,190, primarily due to a reduction in biosolids contract costs. As with water operations, a decrease in electrical rates is projected for 2014 in Material & Supplies. However, this reduction is offset by an increase in chemical supplies and equipment repair parts. Debt Repayments are decreasing by the net change between the final payment of an external debenture and the first installment on an internal loan. Reserve Fund contributions have been increased to offset the decline in debt repayments and increased total contributions for debt and reserves by $184,000. This modest increase is prudent given the extensive wastewater capital projects that are within the 20 year horizon.

11

Budget Drivers - Wastewater

Expense Category Item $ Increase (Decrease)

Total $ Increase

(Decrease)

Personnel Annualized wages and benefits are based on projected costs and 2014 planned work schedules. The increase includes a wage settlement and a reduction in recovery from capital projects. 77,000

Employee Related Expenses Increased cost of Safety Equipment. 1,500 Materials & Supplies Increased costs for Operating Supplies and Equipment Repair Parts. 37,170 Increased Chemical Supplies, primarily due to addition of soda ash mid-year in 2014. 22,000 Decreased Property Taxes, partly offset by increase in Water operations. (6,700) Decreased Utilities based on a drop in Electricity rates. (33,380) 19,090 Purchased Services Subcontractor costs have been increased to reflect scheduled maintenance and repairs. 19,500 Decreased Biosolids contract costs. (70,050) Decreased Advertising costs. (2,400) Increased External Lab Tests, offset by decrease under Water to re-align budget to actual testing levels. 15,180 Decreased Scada costs. (10,000) Increased Communications costs for alarm service and wireless internet. 7,780 Increased Equipment costs. 2,800 (37,190)

Finance Charges/Reserves Decreased in line with scheduled annual debt payments on existing debt of $410,919, offset by $196,321 payment on new internal debt. (214,599)

Increased Reserve contribution. 400,000 185,401 Net Internal Service Charges Fleet decreased, partly offset by increase in Water operations. (34,030) Insurance increase. 4,800 Finance Services allocation. 13,000 Drafting Services allocation. (16,039) Corporate Services and Engineering Administration charges. (16,520) Other miscellaneous adjustments. 846 (47,943) Subtotal 197,858 Revenue Decreases 40,706 Total Net Levy Increase 238,564

12

The following graph highlights the annual budgets by category for the years 2012 through to 2014. This graph also shows the dominance of Debt Repayment and Transfers to Reserve Funds which are 53% of the total expenditure budget. In the case of wastewater, these charges will directly impact and cause fluctuations in the urban service area charge.

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

Personnel

Employee Related Expenses


Purchased Services

Debt Repayment



Personnel Employee Related Expenses Materials & Supplies Purchased Services Debt Repayment Transfers to Reserve

FundsNet Internal Service

Charges2014 1,798,800 41,750 2,221,300 1,049,530 5,299,364 2,300,000 1,483,5062013 1,721,800 40,250 2,202,210 1,086,720 5,513,963 1,900,000 1,531,4492012 1,645,400 39,500 2,278,861 1,083,746 5,637,420 1,800,000 1,478,090

Wastewater: Year-over-Year Budget by Expenditure Category

13

Water and Wastewater Revenues – Analysis The main sources of funding for the water and wastewater systems are user fees and urban service area levies. These two funding sources account for 96.7% of water revenues and 91.6% of wastewater revenues. In the case of wastewater, the urban service area levy finances the net capital financing and reserve contributions. As these costs increase, so does the urban service area charge. Fire protection fees, penalties, application fees and permits, local improvement charges and supplementary taxes make up the remaining revenue balance. The majority of these revenue sources are remaining consistent with prior years. However, fire protection fees charged to Area Municipalities for hydrants was reduced in 2013, but held consistent in 2014. Local improvement charges are decreasing 6%, in line with repayment schedules. Local improvements are typically collected over a 10-year period upon completion of the project. In addition, supplementary tax revenue is projected to decrease in accordance with assessment growth of 0.3% which is lower than prior years. As mentioned in the summary, if consumption was not projected to decline by 2.1% or 60 million cubic metres in 2014, the net impact on a typical residential customer would have been limited to 0.7% compared to the 1.6% recommended in this report.

14

Impact on Typical Residential User The accompanying table shows the impact on a typical residential household using 20 cubic metres of water per month with a home assessed at $200,000. In 2014, the proposed increase in a combined monthly bill for water and wastewater services on the user fee is $1.37 or 1.3%. This increase is due to a reduction in consumption that is projected based on the four-year trend. In addition, a $1.06 increase in the monthly urban service area rate is projected on the annual property tax bill. This increase is due to the proposed increase in reserve contributions within wastewater and is prudent given the $78.9 million of capital projects within the 10-year horizon and the additional $42 million within the 20-year horizon. As a result, the total proposed impact to a typical household is a monthly increase of $2.43 or 1.6% compared to 2013. The projected increase at the time of the 2013 budget deliberations for 2014 was $3.75 or 2.4%, based, to a large extent, on annual inflationary adjustments which did not materialize.

From 2015 2019, the projected annual increases are in the 2% range which is similar to previous forecasts.

Water Services 2013 2014

User Fee 52.39$ 52.89$ 1.0% 0.50$ Urban Service Area Charge 14.27$ 14.27$ 0.0% -$

Total 66.66$ 67.16$ 0.8% 0.50$

Wastewater Services 2013 2014

User Fee 52.60$ 53.47$ 1.7% 0.87$ Urban Service Area Charge 33.50$ 34.56$ 3.2% 1.06$

Total 86.10$ 88.03$ 2.2% 1.93$

Combined Water & Wastewater Services 2013 2014

User Fee 104.99$ 106.36$ 1.3% 1.37$ Urban Service Area Charge 47.77$ 48.83$ 2.2% 1.06$

Total 152.76$ 155.19$ 1.6% 2.43$

Year-over-Year Increase

(Decrease)


(Decrease)

Monthly Impact on Typical Residential Household (20 cubic metres per month & house assessed at $200,000)


(Decrease)

2013 2014 2015 2019User Fee $104.99 $106.36 $108.21 $114.12 USA Levy $47.77 $48.83 $48.96 $50.96

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

Projected Monthly Residential Rates for a Water & Wastewater Customer

15

2014 Draft Capital Budget and Forecast - Water The total 10-year Draft Capital Budget and Forecast is projecting $34.6 million in gross expenditures (2013 Forecast - $32 million). The largest source of funding continues to be from the internal reserve funds at $23.6 million. There is no provision for the issuance of external debt over this 10-year period.

In the current capital budget and forecast, $8.2 million ($9.0 million in 2013) in the 10-year capital program was identified as being financed from development charges. If the projected amount of development charges revenue does not come to fruition and the projects are completed as forecasted, additional debt will have to be issued to finance this revenue shortfall. The user fee projections for water contained further within this report assume $6.9 million in internal debt will be required for those projects contained within the capital budget and forecast due to the projected shortfall in development charges revenue over the next 10 years. The District has started accumulating information for the Development Charges Background Study that is scheduled to be completed in 2014. This study will provide revised development charges revenue forecasts for 30 years.

Details of the capital budget and forecast are contained in Appendix A2 of this report. The following series of graphs and tables highlight the type of capital expenditures as a percentage of the total budget for the period identified, as well as the major projects within that period.

Water Capital52%

Sustainable Infrastructure

16%

Development Charges

24%

Area Contribution

8%

Water Capital Budget & Forecast Sources of Financing

16

The most significant change from 2013 to 2014 between the categories is in Plants which increased from 2% to 36% and Reservoirs which decreased from 24% to 2%. The increase is mainly due to the third phase of the Bala water treatment plant modifications. There are no major projects scheduled for 2014 within Reservoirs. This fluctuation between categories was forecasted in the 2013 budget and reflects optimizing reserve financing between all categories. The table below highlights the most significant projects contained in the 2014 capital budget and forecast. Major Water Projects 2014

Project Program Budget Bala

432033 BALA WTP Modification Phase III Plant $1,150,000 Huntsville

431059 HV Hidden Valley Area WM Replacement Replacement - Upgrade 1,320,000 Subtotal Expenditures $2,470,000 Remaining Expenditures 1,115,000 Total Capital Project Expenditures $3,585,000

Replacement -Upgrades

55%

Rehabilitation -Mains

2%

Plants36%

Reservoirs2%

Inspections3% Studies

1%

Repairs & Maintenance

1%

2014 Water Capital Expenditures by Category

17

The next four-year period in the capital budget and forecast contains $11.2 million in capital expenditures versus $12.3 million for a similar period in the 2013 capital budget and forecast. The table below highlights the most significant projects contained in the 2014 capital budget and forecast between 2015 and 2018. These projects are consistent with the capital forecast presented last year. Major Water Projects 2015 – 2018

Project Program Budget Bala

434009 BALA Repair/Paint Tower Reservoir $800,000 Bracebridge 431020 BB James from MacDonald to Ann Replacement - Upgrade 540,000 Huntsville 431076 HV North End Servicing Replacement - Upgrade 1,500,000 MacTier

432015 MT WTP Modifications Plant 1,900,000 Port Carling

434010 PC Repair/Paint Tower Reservoir 800,000 Subtotal Expenditures $5,540,000 Remaining Expenditures 5,685,000 Total Capital Project Expenditures $11,225,000


55%

Rehabilitation - Mains

0%

Plants17%

Reservoirs18%

Inspections3%

Studies2%


5%

2015 - 2018 Water Capital Expenditures by Category

18

The last five-year period in the capital budget and forecast contains $19.8 million in capital expenditures versus $16.4 million for a similar period in the 2013 capital budget and forecast. The table below highlights the most significant projects contained in the 2014 capital budget and forecast between 2019 and 2023. These projects are consistent with the capital budget and forecast presented last year with the addition of the water treatment plant rehabilitation in Bracebridge and Gravenhurst. Major Water Projects 2019 – 2023

Project Program Budget The District Municipality of Muskoka

432025 DMM MOE Water System Inspections Future Inspections $500,000Bracebridge

431024 BB Spencer from Andrea to Santa's Village Rd Replacement/Upgrade 650,000 432039 BB WTP Rehabilitation Plant 2,000,000 434016 BB Ecclestone Dr Reservoir & Pumping Station Reservoir 500,000

Gravenhurst 431070 GH Repl MR 169 from Readman to End Phase I Replacement/Upgrade 500,000432031 GH Filter Underdrains & Scour System Plant 1,500,000434005 GH Repair/Paint Fairview Tower Plant 800,000434006 GH Repair/Paint Beach Road Tower Reservoir 800,000

Huntsville 432012 HV WTP Phase III Plant 3,000,000

Port Severn 432022 PS WTP Upgrade Plant 4,500,000

Subtotal Expenditures $14,750,000 Remaining Expenditures 5,129,000 Total Capital Project Expenditures $19,879,000


24%

Rehabilitation - Mains

2%Plants57%

Reservoirs12%

Inspections3%

Studies1%


1%

2019 - 2023 Water Capital Expenditures by Category

19

2014 Draft Capital Budget and Forecast - Wastewater The total 10-year Draft Capital Budget and Forecast is projecting $78.9 million in gross expenditures ($78 million in 2013) with none of the expenditures being financed by external debt. Of the $78.9 million budgeted, $29.8 million is forecasted to be financed from development charges ($32.1 million in 2013). However, shortfalls in development charges revenue can be expected. This shortfall will have to be financed from the issuance of internal loans. The user fee projections for wastewater contained further within this report assume $31.9 million in internal debt will be required for existing projects, as well as for those projects contained within the capital budget and forecast, due to the projected shortfall in development charges revenue over the next 10 years. As indicated above, the District will have revised development charges revenue projections in 2014 that will assist in projecting revenue shortfalls in the next 10 years. It should be noted that funding from the District’s own reserves continues to be the largest source of funding for the capital program with $46.1 million being financed through these internal resources. The major difference between the water and wastewater capital is the presence of major plant and pumping station upgrades in Huntsville, Port Severn, and Bracebridge contained within the 10-year period. These two categories alone account for 66% of the expenditures planned over the next 10 years with the majority of the projects containing a sizeable growth component financed from development charges. Major water treatment plant upgrades are not scheduled until after the 10-year forecast period. Details of the capital budget and forecast are contained in Appendix B2 of this report.

Wastewater Capital

30%


15%Environmental13%

Development Charges

38%

Prepaid Special Charges

2%

Area Contribution

2%

Wastewater Capital Budget & Forecast Sources of Financing

20

The total 2014 budget of $7.5 million is relatively unchanged from the 2013 projection. However, projects related to Local Improvements increased from 3% to 51% due to a local improvement in Huntsville, as shown below. This project has been scheduled to be completed in 2014 for the last few years. The following table highlights the most significant projects contained in the 2014 budget. Major Wastewater Projects 2014

Project Program Budget Huntsville

411022 HV Hidden Valley Local Improvement $3,875,000 Subtotal Expenditures $3,875,000 Remaining Expenditures 3,645,000 Total Capital Project Expenditures $7,520,000

Local Improvements

51%

System Expansion

0%

Pumping Stations

11%


6%

Rehabilitation10%

Plants15%

Inspections1%


6%

2014 Wastewater Capital Expenditures by Category

21

The next four-year period in the capital budget and forecast contains $46.6 million in capital expenditures versus $39.2 million for a similar period in the 2013 capital budget and forecast. The emphasis on pumping stations and plants is reflected both in the percentages in the accompanying graph and also in the following table which lists the most significant projects in this four-year period. These projects are consistent with the capital projection presented last year. Major Wastewater Projects 2015 – 2018

Project Program Budget Bracebridge

413050 BB Sewer & Forcemain Robert Dollar Dr Pumping Station $500,000 412037 BB Lagoon Lane STP Control Building Plant 1,400,000

412020 BB Lagoon Lane STP Headworks Plant 7,000,000 412058 BB Lagoon Lane Sludge Cleaning Repairs and Maintenance - Plant 600,000Gravenhurst

412038 GH STP Replace Blowers Plant 500,000Huntsville

411027 HV North End Servicing System Expansion 1,500,000 413077 HV Twin Hodges PS Forcemain Pumping Station 2,100,000 413051 HV Ferguson Rd SPS Expansion Pumping Station 500,000 413052 HV Hodges Lane SPS Expansion Pumping Station 3,000,000 412061 HV GP STP Alkalinity Control Plant 600,000 412024 HV Mountview STP Expansion & Upgrade Plant 19,600,000 Subtotal Expenditures $37,300,000 Remaining Expenditures 9,348,000 Total Capital Project Expenditures $46,648,000

Local Improvements

1%

System Expansion

3%

Pumping Stations

16%


4% Rehabilitation6%

Plants64%

Inspections1%


5%

2015 - 2018 Wastewater Capital Expenditures by Category

22

The last five-year period is again dominated by plant upgrades and improvements, in particular the Port Severn and Huntsville plants. These projects alone account for 46% of the total $24.7 million in budgeted expenditures between 2019 and 2023. In addition, System Expansion accounts for $3.4 million, or 14% of the total budgeted expenditures for this same period. Major Wastewater Projects 2019 – 2023

Project Program Budget Bracebridge 411024 BB Trunk Main from Inveraray Crt to MR 118 System Expansion $1,300,000 411025 BB Trunk Main Sellens N System Expansion 1,500,000 411026 BB Trunk Main MR 4 from Meadow to Sellens System Expansion 680,000 411038 BB Various Sewer Rehabilitation Future Rehabilitation 1,350,000 411086 BB Taylor from Toronto to Front Replacement/Upgrade 500,000 412060 BB Lagoon Lane Sludge Cleaning Cell #3 Repairs and Maintenance – Plant 500,000 Huntsville 411036 HV Various Sewer Rehabilitation Future Rehabilitation 1,000,000 412025 HV GP Process Upgrades Plant 7,000,000 Port Carling 411099 PC Forcemain West St SPS to Medora Replacement/Upgrade 800,000 Port Severn 412026 PS STP Upgrade Plant 4,500,000

Subtotal Expenditures $19,130,000 Remaining Expenditures 5,662,000 Total Capital Project Expenditures $24,792,000

Local Improvements

0%

System Expansion

14%Pumping Stations

5%


7%

Rehabilitation16%Plants

46%

Inspections1%


11%

2019 - 2023 Wastewater Capital Expenditures by Category

23

Capital Financing For both the Water and Wastewater Capital Budget and Forecasts, the single largest source of funding is from internal reserves and reserve funds. The second largest funding source is from development charges. It is these funds that assist in the financing of growth related infrastructure, the largest components of which are comprised of expansion costs associated with the treatment plants. In developing the financial plan, it should be noted that as grants are neither predictable nor guaranteed, there has been no assumption of funding from senior levels of government for any project over the 10-year forecast. Revenue from external sources, noted below, relates to local improvement charges to be collected and contributions from Area Municipalities related to roadwork completed in conjunction with water and wastewater capital projects.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015-2018 2019-2023

% S

hare

Water Capital Sources of Financing

Development Charges Reserve Funds External Sources

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015-2018 2019-2023

% S

hare

Wastewater Capital Sources of Financing

Development Charges Reserve Funds External Sources

24

A further breakdown of the reserve funding reveals that the largest source of funding for the water capital program (52%) is the Water Capital Reserve fund. This reserve is financed by annual contributions from the water services operating budget. The second largest source of financing is from development charges, which is funded from new development. Roadwork done in conjunction with a water and/or wastewater project is to be financed through the respective Area Municipalities’ road budgets, as outlined in the Debt Reduction Initiative. This financing source accounts for 8% and 2% of the total financing requirement over the 10-year forecast for water and wastewater services, respectively. If these amounts are not forthcoming, $2.8 million and $1.8 million, respectively, will need to be financed by alternative methods.

The Wastewater Capital Reserve fund is a major source of funding (30%) for wastewater capital projects. Unlike the water service capital program, the wastewater service capital program draws on the Environmental Reserve fund to finance major upgrades and on local improvement charges to finance collection system expansions. Both services, however, rely on development charges to fund the growth related projects. Within the 2014 Capital Budget and Forecast, development charges play a significant role in financing the systems’ infrastructure for water and wastewater in the amounts of $8.2 and $29.8 million respectively over the 10-year period. If this funding is not forthcoming, any shortfall will have to be financed through the issuance of long-term debt above what is reflected in the accompanying graphs. Contained within Appendix C – Sources of Financing are two schedules showing the commitments against the Development Charges Reserve fund versus the revenue derived from the current level of development charges.

Water Capital52%


16%

Development Charges

24%

Area Contribution

8%

Water Capital Budget & Forecast Sources of Financing

Wastewater Capital

30%


15%Environmental13%

Development Charges

38%

Prepaid Special Charges

2%

Area Contribution

2%

Wastewater Capital Budget & Forecast Sources of Financing

25

Reserves and Reserve Funds Reserves and Reserve Funds play a significant role in financing the replacement, upgrade and expansion of critical infrastructure for the water and wastewater operations. By prudent management of these funds, the District can stabilize year-over-year budgetary fluctuations, better match costs of financing infrastructure to the benefits derived from that infrastructure and provide financial flexibility to avoid and/or respond to periods of high and low interest rates. The following table highlights the Reserves and Reserve Funds used in financing the water and wastewater operations.

Fund Purpose Source of Funding

Wastewater Capital Reserve Fund To finance the replacement and upgrade of infrastructure along with related studies.

Contributions are funded from urban service area charges.

Wastewater Development Charges Reserve Fund

To finance growth related infrastructure in order to expand system capacity and service future development.

Contributions by developers upon issuance of building permit in compliance with Development Charges Act.

Sustainable Infrastructure Reserve Fund

To finance water, wastewater, public transit, solid waste, community energy systems, local roads, bridges, tunnels and capacity building in compliance with the funding agreement.

District’s allocation of Federal Gas Tax revenues.

Environmental Reserve Fund

To finance water, wastewater and lagoons infrastructure requirements as well as other initiatives including studies and programs whose purpose is to identify or address environmental issues.

General tax levy.

Water Capital Reserve Fund To fund the replacement and upgrade of infrastructure along with related studies.

Combination of user fees and urban service area charges.

Water Development Charges Reserve Fund

To finance growth related infrastructure in order to expand system capacity and service future development.

Contributions by developers upon issuance of building permit in compliance with Development Charges Act.

Debt Reduction Reserve Fund To issue internal loans to finance capital projects at interest rates consistent with net borrowing rates.

Initial contributions financed from the Tax Supported budget. By 2021, this fund was forecasted to be self financed from proceeds derived by repayment of internal loans.

26

The following tables highlight the projected annual contributions contained within the 2013 Approved Rate Supported Budgets, the attached 2014 Draft Water and Wastewater Budgets and the projected uncommitted balance remaining in these funds.

Fund

Budget Contribution 2013

Budget 2014

Budget Water Operations Water Capital $2,300,000 $2,600,000 Wastewater Operations Wastewater Capital 1,900,000 2,300,000

Total $4,200,000 $4,900,000

The 2014 annual contributions to the capital funds increased by $700,000 over the 2013 budget and match the forecasted contribution for 2014 made during the 2013 budget deliberation. The majority of the increase in the annual reserve contributions is directly offset by lower debt servicing costs of $515,800. The net increase in reserves and debt servicing costs of $184,000 is prudent given the wastewater capital projects on the 20-year horizon. 2014 2014 2014 2014 2014 Opening Balance Commitments Transfers In Interest Closing BalanceFund (over-committed) Water Capital $2,701,057 ($2,031,000) $2,600,000 $63,475 $3,333,532 Wastewater Capital 5,601,321 (4,325,600) 2,300,000 131,631 3,707,352 Environmental 1,831,499 (1,072,000) 2,500,000 43,040 3,302,539 Sustainable Infrastructure (8,642) (1,365,000) 1,700,000 0 326,358

Total $10,125,235 ($8,793,600) $9,100,000 $238,146 $10,669,781

The two graphs on the following page highlight the ongoing strategy to stabilize the infrastructure financing component of the budget by varying the annual contributions to the capital reserve funds in response to increases or decreases in the annual debt servicing costs. This strategy will over time reduce the District’s reliance on debt and in particular the wastewater capital financing plan’s reliance on funding from the Environmental Reserve fund.

27

0

2,000,000

4,000,000

6,000,000

8,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Wastewater Financing / Reserve Forecast

Debt Servicing Reserve Contributions

0

2,000,000

4,000,000

6,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Water Financing / Reserve Forecast

Debt Servicing Reserve Contributions

Note: Included in the forecasted debt servicing costs for wastewater is $31.9 million in internal loan repayments associated with potential shortfalls in development charge revenues necessary to finance the growth related infrastructure. Similarly, $6.9 million is included for water.

In addition to the reserve funds noted above, The District Municipality of Muskoka also collects funds through development charges. These funds began 2013 with uncommitted balances of $778,770 for water and $30,557 for wastewater. However, by the end of 2014, the Wastewater Development Reserve fund is projected to be in a deficit position of $1,889,202 prior to the issuance of internal loans. The Water Development Reserve fund is projected to have an uncommitted balance of $664,853. If the growth related projects as outlined in the 10-year capital budget and forecast proceed as planned and revenue from development charges does not increase, a shortfall in planned funding will occur. This shortfall will have to be financed from the issuance of internal or external debt. The user fee projections and the debt forecast shown within this report assumes $31.9 million in wastewater and $6.9 million in water development charges revenue shortfall will be required to be financed through internal debt over the next 10 years. The District Municipality of Muskoka conducted a Development Charges Study in 2008 / 2009. In July 2009, a new development charges by-law was passed that phased-in the recommended charges as outlined in the study by November 1, 2012. The study quantified the development charges by calculating both the population growth and eligible growth related expenditures over a 30-year period. Given that the revenue collected is assumed to be collected over the entire period and the fact that growth related capital expenditures are not evenly distributed over the same period, revenue shortfalls and surplus will occur throughout the forecast period depending on when the capital expenditures are initiated. The current by-law will expire in July 2014 and a new study is underway. The revenue projections contained in this budget are based on the average of the actual receipts for the last three years.

28

Debt and Debt Capacity In the 2014 Draft Capital Budget and Forecast, there is no external debt required to finance the forecasted capital expenditures. However, expected shortfalls in the Development Charges Reserve fund will increase the need to issue internal debt. The establishment of the Debt Reduction Reserve fund has provided a vehicle to finance all of the projected debt through internal loans. Of the total $49.4 million debt required over the 10-year period, $2 million is to finance existing unfunded capital projects, $8.6 million is to refinance balloon payments on existing external debt and $38.8 million is to finance forecasted development charges revenue shortfalls. A more detailed breakdown of the Debt Reduction Reserve fund is included in Appendix C. The accompanying graph highlights the projected balances, draws and loan repayments for the Debt Reduction Reserve fund. The graph shows a significant decline in the reserve balance in 2020 onward compared to previous reports. This is due to a reduction in development charges revenue that is being estimated which, in turn, increased the development charges shortfall that is financed from the Debt Reduction Reserve. Once the Development Charges Background Study and associated revenue projections are completed in 2014, management will review the Debt Reduction Reserve over a 20-year period to ascertain whether contributions to the reserve need to continue past 2021, as originally projected. In addition, the growth related capital projects will also be assessed and possibly delayed if growth projections have declined from prior studies. It should be noted that for projects that have a rehabilitation component, these costs may still be incurred and require financing. In developing the graphs below, there were several key assumptions made:

Specific funding grants for individual projects were only budgeted for if they were confirmed. All existing balloon debentures will be financed from the Debt Reduction Reserve fund. New internal debt, issued by the Debt Reduction Reserve fund, will be issued at 4% and amortized over a 20-year period. Federal Gas Tax Revenue will continue to be used to finance wastewater and water infrastructure projects.

The Federal Gas Tax projections have been decreased approximately $60,000 per year to reflect a potential decrease in funding. The allocation to the provinces is based on population. Ontario has seen a decline in population relative to the other provinces, hence the decreased allocation. The actual impact to the District and Area Municipalities is expected to be announced in 2014.

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Debt Reduction Reserve Fund

Balance Internal Loans Issued Transfer In Loan Repayments

29

The projected annual debt charges and the underlying requirement to finance significant water and wastewater infrastructure upgrades and replacements have continued to improve over what was presented to Council in prior reports. This is due in large part to a greater reliance on financing that is collected through development charges. There is inherent risk in relying on development charges. The following analysis, to be conservative in its forecast, assumed with the 2009 downturn in the economy that The District Municipality of Muskoka would see a prolonged but steady improvement in growth over the next several years. However, this forecast is lower than what was forecasted in the Development Charges Study. Any deficit or shortfall within the Development Charges Reserve fund has been included in the calculation of future debt repayments. The accompanying graphs present the existing internal loans and external debt for capital projects completed or near completion and planned and forecasted loans that are required to finance projects contained in the 2014 Draft Capital Budget and Forecast.

The annual debt payment does begin to taper off in 2016; however, as major upgrades in treatment plants resume in 2017 / 2018, annual debt payments begin to rebound. In addition, this new debt has been financed internally. The result is lower annual carrying costs and greater corporate financial resiliency to deal with any future financial challenges and to respond to any future instability in the financial markets.

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Wastewater ‐ Forecasted Payments

Existing Debt ‐ External Existing Loans ‐ Internal

Planned Loans ‐ Internal Forecasted Loans ‐ Internal

30

The following graph also highlights the need to finance water infrastructure, although not as severe as in the case of wastewater.

After 2015, there is a steady and continued drop in annual debt payments. As the debt servicing costs decrease, additional contributions will be made to the Water Capital Reserve fund, which will in turn reduce the potential for further debt financing. Starting in 2020, upgrades to plants in Huntsville and Port Severn have been forecasted as internal loans resulting from a shortfall in the water development charge revenues. It is essential that the water system builds up its reserves in the next ten years in order to finance the expected $78.3 million in capital requirements to replace and upgrade major plants just beyond the current 10-year forecast for facilities in Gravenhurst, Bracebridge and Huntsville.

The Ministry of Municipal Affairs and Housing regulates the level of debt that may be incurred by municipalities. No more than 25% of the total own-purpose revenues can be used to service debt and other long-term obligations. This accompanying graph highlights the projected total annual debt repayments for The District Municipality of Muskoka for both its rate supported and general tax supported operations. It then compares this to the projected annual credit limit set by the Province through regulation. As illustrated from the accompanying graph, the available credit limit continues to improve over the forecast period as existing debt matures and future financing is internalized. Note: External Rating Agencies and the Ministry do not consider internal loans as debt to the municipality, so the available credit limit is higher than demonstrated.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Water ‐ Forecasted Debt Payments

Existing Debt ‐ External Existing Loans ‐ Internal Forecasted Loans ‐ Internal

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Forecasted Available Credit Limit

External Debt Payments Internal Loan Payments Availiable Credit Limit

31

Attached Appendices and Schedules Appendix A1: 2014 Draft Operating Budget – Water and Appendix B1: Wastewater These schedules include a narrative commentary followed by the budget schedules for each of the functional sections by major category of expenditures and revenues. In reviewing these schedules, please note the 2013 actual figures are posted to October 18, 2013. Appendix A2: 2014 Draft Capital Budget and Forecast – Water and Appendix B2: Wastewater The first schedule within these appendices contains a project summary by category. The second schedule within these appendices provides a listing of proposed capital projects to be constructed within the period from 2014 to 2023. In addition, the schedule contains post 2023 budgets for large projects currently identified. This is for reference only and not for approval. Appendix C: Sources of Financing A schedule showing by fund the annual commitments against the funds resulting from projects contained within the Draft Capital Budget and Forecast, along with recommended annual contributions to those funds and projected year-end balance. Appendix D: User Fees – Water and Wastewater A table showing the existing and proposed user fees for 2014, effective as of January 1, 2014. Appendix E: A schedule showing the FTE (Full Time Equivalent) staff counts. Tables, as referenced in the report, from the Municipal Study 2012 as prepared by BMA Management Consulting Inc. Respectfully submitted, Respectfully submitted, Julie Stevens, CPA, CA A.J. White, P. Eng. Commissioner of Finance and Commissioner of Engineering and Corporate Services Public Works

32

Expenditures

Operating Costs

Personnel 3,630,208 3,128,697 3,561,500 3,730,100 3,730,100 4.7% 168,600

Employee Related Expenses 89,173 78,724 99,000 102,000 102,000 3.0% 3,000

Materials & Supplies 3,640,985 2,673,068 4,033,679 4,070,770 4,070,770 0.9% 37,091

Purchased Services 1,580,222 1,021,574 1,790,380 1,656,690 1,656,690 (7.5%) (133,690)

Minor Capital 80,520

Total Operating Costs 9,021,108 6,902,063 9,484,559 9,559,560 9,559,560 0.8% 75,001


Finance Charges 8,832,030 5,679,045 8,779,921 8,264,087 8,264,087 (5.9%) (515,834)

Reserves 4,808,896 3,150,000 4,200,000 4,900,000 4,900,000 16.7% 700,000

Total Finance Charges/Reserves 13,640,926 8,829,045 12,979,921 13,164,087 13,164,087 1.4% 184,166


Fleet 584,381 399,926 493,190 474,490 474,490 (3.8%) (18,700)

Insurance 300,470 226,425 301,900 310,400 310,400 2.8% 8,500

Support Services 1,913,867 1,339,557 2,183,530 2,154,985 2,154,985 (1.3%) (28,545)

Total Net Internal Service Charges 2,798,718 1,965,908 2,978,620 2,939,875 2,939,875 (1.3%) (38,745)

Total Expenditures 25,460,752 17,697,016 25,443,100 25,663,522 25,663,522 0.9% 220,422

Revenues

Revenue Sources

User Fees (14,548,691) (10,524,300) (14,503,160) (14,563,736) (14,563,736) 0.4% (60,576)

Application Fees/Permits (44,632) (47,701) (55,000) (55,000) (55,000)

Local Improvement Charges (550,690) (515,573) (527,540) (494,730) (494,730) (6.2%) 32,810

Supplementary Taxes (140,785) (26,400) (105,000) (48,610) (48,610) (53.7%) 56,390

Other (3,525)

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change

Draft Rate Supported Operating Budget - Water & Wastewater

Water and Wastewater Levy Run Date: 10/18/13 1:32 PM

W&WW by Object

33

Total Revenue Sources (15,288,323) (11,113,974) (15,190,700) (15,162,076) (15,162,076) (0.2%) 28,624

Total Revenues (15,288,323) (11,113,974) (15,190,700) (15,162,076) (15,162,076) (0.2%) 28,624

Total Water and Wastewater Levy 10,172,429 6,583,042 10,252,400 10,501,446 10,501,446 2.4% 249,046

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Water and Wastewater Levy Run Date: 10/18/13 1:32 PM

W&WW by Object

34

Expenditures

Operating Costs

Personnel 1,829,881 1,684,560 1,839,700 1,931,300 1,931,300 5.0% 91,600



Purchased Services 570,799 311,299 703,660 607,160 607,160 (13.7%) (96,500)



Finance Charges 3,221,917 2,321,895 3,265,958 2,964,723 2,964,723 (9.2%) (301,235)

Reserves 2,655,618 1,725,000 2,300,000 2,600,000 2,600,000 13.0% 300,000

Total Finance Charges/Reserves 5,877,535 4,046,895 5,565,958 5,564,723 5,564,723 (1,235)


Fleet 287,690 219,716 234,920 250,250 250,250 6.5% 15,330

Insurance 133,600 100,125 133,500 137,200 137,200 2.8% 3,700

Support Services 950,598 682,541 1,078,751 1,068,919 1,068,919 (0.9%) (9,832)

Total Net Internal Service Charges 1,371,888 1,002,382 1,447,171 1,456,369 1,456,369 0.6% 9,198


Revenues

Revenue Sources

User Fees (7,892,839) (5,758,354) (7,888,728) (7,930,170) (7,930,170) 0.5% (41,442)




Total Revenue Sources (8,084,012) (5,911,331) (8,087,908) (8,099,990) (8,099,990) 0.1% (12,082)

Total Revenues (8,084,012) (5,911,331) (8,087,908) (8,099,990) (8,099,990) 0.1% (12,082)

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Water Levy Run Date: 10/18/13 1:32 PM

W&WW by Object

1

Total Water Levy 3,305,872 2,471,017 3,358,800 3,369,282 3,369,282 0.3% 10,482

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Water Levy Run Date: 10/18/13 1:32 PM

W&WW by Object

2

H:\F-Finance\F05 - Budgets & Estimates\RS2 - Rate Supported - Operating\2014\Narratives\Water & Wastewater\Water Narratives.Docx

Department Water Division - Program Operations Summary Purpose

A summary of budgets that is comprised of direct support and operating costs to maintain systems (Administration, Treatment and Distribution).

Significant Budgetary Items

2014 vs. 2013 Base Budgets

Operations Summary Water increased 0.3% or $16,597. Detailed budget notes are contained in the individual budget sections, which make up the total Water Operations budget (Administration, Treatment and Distribution).

Water 05 Fund

Support Services, Revenue and Capital Financing Water

Operations Summary Water

Administration Water

Treatment Water

Distribution Water

Expenditures

Operating Costs

Personnel 1,829,881 1,684,560 1,839,700 1,931,300 1,931,300 5.0% 91,600




Total Operating Costs 4,010,048 3,204,396 4,298,679 4,297,180 4,297,180 (1,499)


Reserves

Total Finance Charges/Reserves


Fleet 287,690 219,716 234,920 250,250 250,250 6.5% 15,330

Insurance 133,600 100,125 133,500 137,200 137,200 2.8% 3,700

Support Services 678,100 497,869 780,453 779,519 779,519 (0.1%) (934)

Total Net Internal Service Charges 1,099,390 817,710 1,148,873 1,166,969 1,166,969 1.6% 18,096


Total Operations Summary Water 5,109,438 4,022,106 5,447,552 5,464,149 5,464,149 0.3% 16,597

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Operations Summary Water Run Date: 10/18/13 1:32 PM

W&WW by Object

4


Department Water Division - Program Administration Purpose

Direct support services for municipal water services including personnel, employee related expenses, materials & supplies, purchased services and net internal service charges.



Overall, Administration increased 1.5% or $19,426. Personnel increased 10.3% or $20,600 based on a 2% negotiated wage settlement, projected benefit costs and 2014 planned work schedules for time spent by all staff on administrative activities, such as training and supervision. Employee Related Expenses increased 2.6% or $1,500 specifically for safety equipment. Materials & Supplies remained the same. Purchased Services decreased 12.4% or $13,170 primarily due to decreased advertising and communications costs. Net Internal Service Charges increased 1.1% or $10,496 primarily due to increased fleet, insurance and finance services with all increases totaling $30,019. The total fleet complement remains unchanged. These are offset by reductions of $19,523 in drafting and engineering administration costs based on historical usage.

2014 Proposed Service Level Changes None

Expenditures

Operating Costs

Personnel 199,655 227,804 200,300 220,900 220,900 10.3% 20,600


Materials & Supplies 12,327 5,544 19,150 19,150 19,150


Total Operating Costs 429,466 359,203 384,240 393,170 393,170 2.3% 8,930


Fleet 43,203 38,622 35,800 43,530 43,530 21.6% 7,730

Insurance 133,600 100,125 133,500 137,200 137,200 2.8% 3,700

Support Services 677,755 497,869 780,453 779,519 779,519 (0.1%) (934)

Total Net Internal Service Charges 854,558 636,616 949,753 960,249 960,249 1.1% 10,496

Total Expenditures 1,284,024 995,819 1,333,993 1,353,419 1,353,419 1.5% 19,426

Total Administration Water 1,284,024 995,819 1,333,993 1,353,419 1,353,419 1.5% 19,426

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Administration Water Run Date: 10/18/13 1:32 PM

W&WW by Object

6


Department Water Division - Program Treatment Purpose

Treatment expenses for municipal water services including personnel, materials & supplies, purchased services and fleet.



Overall, Treatment decreased 1.5% or $42,589. Personnel increased 6.7% or $56,200 based on a 2% negotiated wage settlement, projected benefit costs and 2014 planned work schedules. Materials & Supplies decreased 1.8% or $25,119 mainly due to a decrease in utilities of $30,700 for electricity price savings, which is partly offset by increased supplies and chemical costs. Purchased Services decreased 16.7% or $75,440 primarily for decreased contractor costs of $47,570 in accordance with scheduled maintenance and repairs. There are also reductions in Scada costs of $10,000 and external lab tests of $17,870. Fleet increased 2.0% or $1,770 to reflect projected usage within Water.


Key Service Indicators

Total number of water treatment plants 9 Cubic metres of water treated 4,300,400

Expenditures

Operating Costs

Personnel 768,406 700,261 843,000 899,200 899,200 6.7% 56,200

Employee Related Expenses 75

Materials & Supplies 1,262,089 897,645 1,391,169 1,366,050 1,366,050 (1.8%) (25,119)


Total Operating Costs 2,245,329 1,747,447 2,684,689 2,640,330 2,640,330 (1.7%) (44,359)


Reserves



Fleet 104,516 71,489 86,460 88,230 88,230 2.0% 1,770

Support Services 345


Total Expenditures 2,350,190 1,818,936 2,771,149 2,728,560 2,728,560 (1.5%) (42,589)

Total Treatment Water 2,350,190 1,818,936 2,771,149 2,728,560 2,728,560 (1.5%) (42,589)

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Treatment Water Run Date: 10/18/13 1:32 PM

W&WW by Object

8


Department Water Division - Program Distribution Purpose

Distribution expenses for municipal water services including personnel, materials & supplies, purchased services and fleet.



Overall, Distribution increased 3.0% or $39,760. Personnel increased 1.9% or $14,800 based on a 2% negotiated wage settlement, projected benefit costs and 2014 planned work schedules. Materials & Supplies increased 9.4% or $27,020 comprised of increases in supplies of $18,650, mainly due to the meter change-out program, as well as increases in the electricity budget shifted from Treatment of $8,370. Purchased Services decreased 5.4% or $7,890 for planned reduction in subcontractor costs. Fleet increased 5.2% or $5,830 to reflect projected usage within Water.

2014 Proposed Service Level Changes None Key Service Indicators

Total kms of water pipe 330 km Total number of water booster stations (distribution and transmission) 8 Percentage of water unaccounted for (missing water/total treated) 2012 18%

Expenditures

Operating Costs

Personnel 861,819 756,495 796,400 811,200 811,200 1.9% 14,800

Materials & Supplies 272,979 246,778 286,250 313,270 313,270 9.4% 27,020




Fleet 139,973 109,605 112,660 118,490 118,490 5.2% 5,830



Total Distribution Water 1,475,227 1,207,356 1,342,410 1,382,170 1,382,170 3.0% 39,760

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Distribution Water Run Date: 10/18/13 1:32 PM

W&WW by Object

10


Department Water Division - Program Support Services, Revenue and Capital Financing Purpose

Operating costs related to the provision of municipal water services including property taxes for District facilities. Finance charges for capital water projects including principal and interest payments and transfers to reserve funds. Net internal service charges for the administration of municipal water services. Revenue including District metered and non-metered user fees, connection fees, local improvement charges and supplementary taxes.



Operating Costs increased 11.9% or $16,100 for property taxes. Finance Charges/Reserves remain virtually unchanged. The $300,000 decrease in debenture payments will be offset by an increased transfer to the reserve fund. Net Internal Service Charges decreased 3.0% or $8,898 mainly due to the decreased administration costs for engineering services. Revenues increased 0.1% or $12,082 due primarily to the recommended increase for Water user fees ($39,686). These increases are offset by expected decreases in local improvement charges ($6,360) and in supplementary taxes ($23,000).


Key Service Indicators (Projected to December 31, 2013)

Total number of water customers 11,575 Consumption billed (cubic metres) 2,561,500 Number of requests for water on/off 650 Number of hydrants 2,154

Expenditures

Operating Costs

Materials & Supplies 130,413 128,675 134,900 151,000 151,000 11.9% 16,100



Finance Charges 3,221,917 2,321,895 3,265,958 2,964,723 2,964,723 (9.2%) (301,235)

Reserves 2,655,618 1,725,000 2,300,000 2,600,000 2,600,000 13.0% 300,000

Total Finance Charges/Reserves 5,877,535 4,046,895 5,565,958 5,564,723 5,564,723 (1,235)


Support Services 272,498 184,672 298,298 289,400 289,400 (3.0%) (8,898)

Total Net Internal Service Charges 272,498 184,672 298,298 289,400 289,400 (3.0%) (8,898)


Revenues

Revenue Sources

User Fees (7,892,839) (5,758,354) (7,888,728) (7,930,170) (7,930,170) 0.5% (41,442)




Total Revenue Sources (8,084,012) (5,911,331) (8,087,908) (8,099,990) (8,099,990) 0.1% (12,082)

Total Revenues (8,084,012) (5,911,331) (8,087,908) (8,099,990) (8,099,990) 0.1% (12,082)

Total Support Services, Revenue and Capital Financing W (1,803,566) (1,551,089) (2,088,752) (2,094,867) (2,094,867) 0.3% (6,115)

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Support Services, Revenue and Capital Financing Water Run Date: 10/18/13 1:32 PM

W&WW by Object

12

Project Expenditures

Distribution Water 1,900,000 2,035,000 535,000 685,000 1,505,000 3,400,000 835,000 1,055,000 785,000 1,359,000 1,145,000 9,800,000

Treatment Water 9,170,000 1,350,000 2,350,000 650,000 800,000 150,000 1,650,000 4,350,000 3,350,000 1,750,000 2,600,000 78,300,000

Non-Tangible Capital Asset Projects 827,125 200,000 200,000 550,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,350,000

Close Once Final Transactions Posted Water 175,000

Total Project Expenditures 12,072,125 3,585,000 3,085,000 1,885,000 2,505,000 3,750,000 2,685,000 5,605,000 4,335,000 3,309,000 3,945,000 90,450,000

Project Financing

Financing From Own Funds

Distribution Water (1,782,000) (1,651,000) (480,000) (564,000) (1,057,500) (2,813,000) (463,000) (642,000) (578,000) (1,194,000) (1,035,000) (9,570,000)

Treatment Water (9,138,470) (1,350,000) (2,350,000) (650,000) (800,000) (150,000) (1,650,000) (4,350,000) (3,350,000) (1,750,000) (2,600,000) (78,300,000)

Non-Tangible Capital Asset Projects (827,125) (200,000) (200,000) (550,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (2,350,000)

Close Once Final Transactions Posted Water (175,000)

Total Financing From Own Funds (11,922,595) (3,201,000) (3,030,000) (1,764,000) (2,057,500) (3,163,000) (2,313,000) (5,192,000) (4,128,000) (3,144,000) (3,835,000) (90,220,000)

Debentures

Treatment Water (31,530)

Total Debentures (31,530)

Grants

Distribution Water

Total Grants

External Sources

Distribution Water (118,000) (384,000) (55,000) (121,000) (447,500) (587,000) (372,000) (413,000) (207,000) (165,000) (110,000) (230,000)

Total External Sources (118,000) (384,000) (55,000) (121,000) (447,500) (587,000) (372,000) (413,000) (207,000) (165,000) (110,000) (230,000)

Total Project Financing (12,072,125) (3,585,000) (3,085,000) (1,885,000) (2,505,000) (3,750,000) (2,685,000) (5,605,000) (4,335,000) (3,309,000) (3,945,000) (90,450,000)

Net Project

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Water

Capital Budget and Forecast

Run Date: 10/8/13 3:09 PM

10 Year Capital Budget & Actual Detail Amended

1


Distribution Water

Replacement/Upgrade Water

BB Taylor Rd Watermain (Toronto to Pine) 420.631431015 65,000 295,000

BB Richard from Taylor to Woodchester 420.702431019 90,000 360,000

BB James from MacDonald to Ann 420.703431020 90,000 450,000

BB 200m on Dawsonwood 420.704431021 50,000 230,000

BB 40m on Shaw at Ecclestone 420.705431022 5,000 45,000

BB Taylor Rd Lateral Transfers Front to Toronto431023 20,000 80,000

BB Spencer from Andrea to Santa's Village Rd 420.431024 130,000 520,000

BB 128m on Spadina 420.708431025 25,000 100,000

BB Holditch and Smith Reline 420.710431026 120,000

GH Old Muskoka from Muskoka Beach to MR 18 42431031 60,000 240,000

GH Walton from Muskoka Beach to Lofty Pines 421431039 40,000 160,000

GH Bishop St from Third to Bethune 421.709431040 25,000 100,000

GH Phillip St E from Fifth to Bethune 421.710431041 60,000 240,000

GH Third St from Pinedale Rd to David St 421.711431042 20,000 80,000

GH Pinedale Rd from Third St to Bethune 421.712431043 25,000 125,000

GH Farquhar from John to Muskoka Rd 412.713431044 25,000 100,000

GH Wagner from John to Mary 421.715431046 40,000 160,000

GH Kelly Dr from Hahne Easement North 421.716431047 40,000 160,000

GH Sharpe from First to Muskoka Rd 421.717431048 125,000

GH Beach Rd from Brydon Bay Rd to Maple Heights431049 500,000

GH Musquash Rd "B" (Hydrant #250) to MR 169 42431050 500,000

GH Reline/Replace Various Cast Iron WM431052 3,000,000

HV Scotts Point Replacement 422.641431054 20,000 310,000

HV Scott from King William to Meadow Park 422.70431055 130,000

HV Madeline St WM Replacement 422.709431058 50,000

HV Hidden Valley Area WM Replacement431059 100,000 1,320,000

BALA WM Replacement Weismiller Lumber 425.644431061 50,000 200,000

GH Winewood from Sarah to Muskoka Rd Replace431063 40,000 450,000

GH John from Winewood to Wagner Reline 421.721431064 75,000 225,000

GH Repl MR 169 from Readman to End Phase I431070 125,000 375,000

HV Lake Dr WM (235m) 422.705431073 20,000 350,000

HV George St from Henry to End (168m)431084 20,000 180,000

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Water


Run Date: 10/8/13 3:09 PM


3

HV Anthony Court431085 20,000 180,000

GH Brock/First St Abandon Tower Piping431086 25,000 100,000

BB Service Transfers Taylor Front to Woodward431087 40,000 160,000

GH Abandon Twin WM Winewood (Beach to First)431088 20,000 80,000

BB Bird Ln from Richard to End (150m)431089 30,000 130,000

GH Fourth & Bishop (75m E & 100m S)431090 40,000 160,000

HV Main St W from Centre St to Lorne WM (150m)431093 15,000 180,000

BB Valley Drive431094 160,000

HV Main St E from Centre St to West St WM (130m431095 10,000 130,000

HV Main St E from West St to Bridge WM (200m)431096 20,000 200,000

PC Armstrong St Extension431097 144,000

BB Taylor Rd Lateral Transfers Manitoba to River431098 50,000

BB Transfer Laterals on Beaumont to PVC & Aband431099 35,000 175,000

GH Phillip at Railway Crossing431101 120,000

Repair Flood Damaged Watermain in HV431102 150,000

BB Kimberly St from Quebec to Ontario431103 10,000 90,000

BB Ontario St from Church to Kimberly431104 20,000 100,000

BB Robert St from James St to End431105 10,000 125,000

BB Ida St from Manitoba to James431106 100,000

BB Woodward St from Front to Alice431107 20,000 260,000

GH Lorne St Phase I (Louise St 280 metres S)431108 75,000 225,000

GH Lorne St Phase II (280m S of Louise to Islander431109 300,000

HV South Dufferin (Lansdowne to Mary)431110 110,000

PC Medora to Pollution Control Plant431111 150,000

GH Repl MR 169 from Readman to End Phase II431112 500,000

Total Replacement/Upgrade Water 950,000 1,985,000 535,000 685,000 1,505,000 1,900,000 835,000 1,015,000 620,000 1,319,000 965,000 4,695,000

Significant Growth Related Replacement/Upgrade Water

GH Brydon Bay Loop - Gravenhurst 421.627431074 1,000,000

HV Earl's Rd Connect to Hanes Reservoir 422.611431075 800,000

HV North End Servicing 422.623431076 1,500,000

Total Significant Growth Related Replacement/Upgrade Wa 800,000 1,500,000 1,000,000

Rehabilitation Water

BB Watermain Rehab 420.605431062 2,000,000

GH John St Easement from Wagner to Lorne Reline431065 20,000 85,000 105,000

GH Brock from First to Bethune Reline 421.724431067 20,000 95,000

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Water


Run Date: 10/8/13 3:09 PM


4

GH Second St from Church to Brock Reline 421.725431068 20,000 85,000

GH Violet to Kelly, Kelly to Hahne Easement Reline 431069 20,000 80,000

HV Watermain Rehab 422.607431071 2,000,000

DMM Air Relief Valves & Chambers (HV, BB & GH)431100 150,000

HV Valve Repl (Main St / Chaffey St)431113 50,000

Total Rehabilitation Water 150,000 50,000 40,000 165,000 40,000 180,000 4,105,000

Total Distribution Water 1,900,000 2,035,000 535,000 685,000 1,505,000 3,400,000 835,000 1,055,000 785,000 1,359,000 1,145,000 9,800,000

Treatment Water

Plant Water

GH Replace WTP Filter Coatings 421.654432002 1,295,000

BALA WTP Modification Phase II 425.683432007 3,900,000

HV WTP Phase III 422.707432012 800,000 1,600,000 600,000

HV WTP Phase II HVAC System & Misc. Rehab 422432013 3,325,000

MT WTP Modifications 424.686432015 100,000 1,400,000 500,000

PC Water Treatment Plant Rehabilitation 426.661432017 4,000,000

PS WTP Rehabilitation432027 600,000

GH Filter Underdrains & Scour System432031 750,000 750,000

BALA WTP Modification Phase III432033 50,000 1,150,000

BALA WTP Rehabilitation432037 4,000,000

HV WTP Chlorination / Soda Ash Pump Upgrades432038 50,000

BB WTP Rehabilitation432039 1,000,000 1,000,000

GH WTP Replace Generator432040 300,000

Total Plant Water 9,170,000 1,300,000 1,400,000 500,000 1,550,000 2,350,000 1,600,000 1,300,000 8,000,000

Significant Growth Related Plant Water

BB WTP Expansion 420.659432019 20,000,000

GH WTP Expansion 421.659432020 20,000,000

HV WTP Expansion 422.659432021 20,000,000

PS WTP Upgrade 423.697432022 1,500,000 2,000,000 1,000,000

Total Significant Growth Related Plant Water 1,500,000 2,000,000 1,000,000 60,000,000

Reservoir Water

GH Repair/Paint Fairview Tower 421.605434005 800,000 800,000

GH Repair/Paint Beach Road Tower 421.607434006 800,000 800,000

BALA Repair/Paint Tower434009 800,000 800,000

PC Repair/Paint Tower434010 800,000 800,000

GH Beaver Creek Reservoir Coating/Pump/Control 434014 150,000 150,000

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Water


Run Date: 10/8/13 3:09 PM


5

BB Ecclestone Dr Reservoir & Pumping Station434016 500,000 500,000

MT Repair/Paint Tower434017 800,000

GH Clean Fairview Tower434018 150,000 150,000 300,000

GH Clean Beach Rd Tower434019 150,000 300,000

PC Pressure Wash Tower434020 50,000

GH Beaver Creek Reservoir Generator Replacemen434021 200,000

Total Reservoir Water 50,000 950,000 150,000 800,000 150,000 150,000 800,000 150,000 1,300,000 5,300,000

Significant Growth Related Reservoir Water

HV Highland Dr Booster/Reservoir 422.619433002 2,000,000

PS Water Tower434011 1,500,000

BAYS Water Tower434012 1,500,000

Total Significant Growth Related Reservoir Water 5,000,000

Total Treatment Water 9,170,000 1,350,000 2,350,000 650,000 800,000 150,000 1,650,000 4,350,000 3,350,000 1,750,000 2,600,000 78,300,000

Non-Tangible Capital Asset Projects

Inspections

DMM MOE Water System Inspections Future432025 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,000,000

DMM MOE Water System Inspections 2013432034 100,000

DMM MOE Water System Inspections 2014432041 100,000

Total Inspections 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,000,000

Studies Water

DMM Water Quality Regulations Future439003 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000

DMM Water Quality Regulations 2013439006 100,000

DMM Water Quality Regulations 2014439007 50,000

Total Studies Water 100,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000

Repairs and Maintenance

HV Decommission Highlands BPS/Hwy 60 BPS/HV 431114 50,000

DMM SCADA Upgrades 400.602432001 160,000

MT WTP Filter Modifications 424.696432016 170,000

DMM Automatic Transfer Switch Upgrades 2011-20432028 150,000

DMM Replace Programmable Logic Controllers432035 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000

DMM Replace Surge Protectors432036 50,000

BB Demolish Bird's Mill Reservoir 420.640434004 70,000

BB Paint Hamblin Tank Future434015 350,000 350,000

Total Repairs and Maintenance 600,000 50,000 50,000 400,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 850,000

Post Closing Costs

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Water


Run Date: 10/8/13 3:09 PM


6

Post-Closing Project Costs - Water439900 27,125

Total Post Closing Costs 27,125

Total Non-Tangible Capital Asset Projects 827,125 200,000 200,000 550,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,350,000

Close Once Final Transactions Posted Water

Close Once Final Transactions Posted Water

GH WTP Permit, Upgrade & Manual 421.733434007 175,000

Total Close Once Final Transactions Posted Water 175,000

Total Close Once Final Transactions Posted Water 175,000


Project Financing

Financing From Own Funds (11,922,595) (3,201,000) (3,030,000) (1,764,000) (2,057,500) (3,163,000) (2,313,000) (5,192,000) (4,128,000) (3,144,000) (3,835,000) (90,220,000)

Debentures (31,530)

Grants

External Sources (118,000) (384,000) (55,000) (121,000) (447,500) (587,000) (372,000) (413,000) (207,000) (165,000) (110,000) (230,000)


Net Project

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Water


Run Date: 10/8/13 3:09 PM


7

Expenditures

Operating Costs

Personnel 1,800,327 1,444,137 1,721,800 1,798,800 1,798,800 4.5% 77,000



Purchased Services 1,009,423 710,275 1,086,720 1,049,530 1,049,530 (3.4%) (37,190)




Finance Charges 5,610,112 3,357,151 5,513,963 5,299,364 5,299,364 (3.9%) (214,599)

Reserves 2,153,278 1,425,000 1,900,000 2,300,000 2,300,000 21.1% 400,000



Fleet 296,691 180,210 258,270 224,240 224,240 (13.2%) (34,030)

Insurance 166,870 126,300 168,400 173,200 173,200 2.9% 4,800

Support Services 963,270 657,017 1,104,779 1,086,066 1,086,066 (1.7%) (18,713)

Total Net Internal Service Charges 1,426,831 963,527 1,531,449 1,483,506 1,483,506 (3.1%) (47,943)


Revenues

Revenue Sources

User Fees (6,655,852) (4,765,945) (6,614,432) (6,633,566) (6,633,566) 0.3% (19,134)




Other (3,525)

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Wastewater Levy Run Date: 10/18/13 1:32 PM

W&WW by Object

1


Total Revenues (7,204,314) (5,202,643) (7,102,792) (7,062,086) (7,062,086) (0.6%) 40,706

Total Wastewater Levy 6,866,553 4,112,026 6,893,600 7,132,164 7,132,164 3.5% 238,564

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Wastewater Levy Run Date: 10/18/13 1:32 PM

W&WW by Object

2

H:\F-Finance\F05 - Budgets & Estimates\RS2 - Rate Supported - Operating\2014\Narratives\Water & Wastewater\Wastewater Narratives.Docx

Department Wastewater Division - Program Operations Summary Purpose

A summary of budgets that is comprised of direct support and operating costs to maintain systems (Administration, Treatment and Collection).



Operations Summary Wastewater increased 0.5% or $28,055. Detailed budget notes are contained in the individual budget sections that make up the total Wastewater Operations budget (Administration, Treatment and Collection).

Wastewater 04 Fund

Support Services, Revenue and Capital Financing Wastewater

Operations Summary Wastewater

Administration Wastewater

Treatment Wastewater

Collection Wastewater

3

Expenditures

Operating Costs

Personnel 1,800,327 1,444,137 1,721,800 1,798,800 1,798,800 4.5% 77,000



Purchased Services 1,009,423 710,275 1,086,720 1,049,530 1,049,530 (3.4%) (37,190)




Reserves



Fleet 296,691 180,210 258,270 224,240 224,240 (13.2%) (34,030)

Insurance 166,870 126,300 168,400 173,200 173,200 2.9% 4,800


Total Net Internal Service Charges 1,154,333 778,855 1,233,151 1,194,106 1,194,106 (3.2%) (39,045)


Revenues

Revenue Sources

User Fees (1,075)

Total Revenue Sources (1,075)

Total Revenues (1,075)

Total Operations Summary Wastewater 5,897,406 4,258,345 6,122,131 6,150,186 6,150,186 0.5% 28,055

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Operations Summary Wastewater Run Date: 10/18/13 1:32 PM

W&WW by Object

4


Department Wastewater Division - Program Administration Purpose

Direct support services for municipal wastewater services including personnel, employee related expenses, materials & supplies, purchased services and net internal service charges.



Overall, Administration increased 0.9% or $11,905. Personnel increased 7.7% or $11,200 based on a 2% negotiated wage settlement, projected benefit costs and 2014 planned work schedules for time spent by all staff on administrative activities, such as training and supervision. Employee Related Expenses increased 3.7% or $1,500 specifically for safety equipment. Materials & Supplies remained the same. Purchased Services increased 7.5% or $8,180 due to telephone, alarm services, and leased equipment increases, which are offset in part by decreased advertising. Net Internal Service Charges decreased 0.9% or $8,975 mainly due to reduced fleet charges, drafting services and engineering administration costs based on historical usage, with decreases totalling $27,671. Offsetting increases are primarily for finance services and insurance.


5

Expenditures

Operating Costs

Personnel 137,918 141,121 146,100 157,300 157,300 7.7% 11,200


Materials & Supplies 13,495 6,191 13,070 13,070 13,070

Purchased Services 193,059 89,854 109,180 117,360 117,360 7.5% 8,180




Fleet 40,059 39,741 40,930 36,970 36,970 (9.7%) (3,960)

Insurance 166,870 126,300 168,400 173,200 173,200 2.9% 4,800


Total Net Internal Service Charges 897,701 638,385 1,015,811 1,006,836 1,006,836 (0.9%) (8,975)

Total Expenditures 1,349,893 895,700 1,324,411 1,336,316 1,336,316 0.9% 11,905

Total Administration Wastewater 1,349,893 895,700 1,324,411 1,336,316 1,336,316 0.9% 11,905

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Administration Wastewater Run Date: 10/18/13 1:32 PM

W&WW by Object

6


Department Wastewater Division - Program Treatment Purpose

Treatment expenses for municipal wastewater services including personnel, materials & supplies, purchased services and fleet.



Overall, Wastewater Treatment increased 0.4% or $16,640. Personnel increased 4.9% or $58,100 based on a 2% negotiated wage settlement, projected benefit costs and 2014 planned work schedules. Materials & Supplies increased 1.3% or $25,310. Operating supplies increased $12,570 and equipment repair parts increased $25,400, which is primarily for the headworks grinder in Gravenhurst. The chemical increase of $22,000 includes the introduction of soda ash in Bracebridge and an increase in polymer consumption in Gravenhurst. There is a reduction in utilities of $34,660 for electricity price savings. Purchased Services decreased 6.2% or $50,870 mainly due to a reduction in Scada costs and Biosolids, which are offset by increases of $29,180 for external lab tests and contracted expenses. Fleet decreased 9.8% or $15,900 based on projected usage within Wastewater.


Key Service Indicators

Total number of tertiary wastewater treatment plants 8 Total number of secondary wastewater treatment plants 1 Cubic metres of wastewater treated 4,237,405

7

Expenditures

Operating Costs

Personnel 1,250,806 1,048,842 1,195,700 1,253,800 1,253,800 4.9% 58,100





Reserves



Fleet 194,123 111,438 162,890 146,990 146,990 (9.8%) (15,900)

Support Services 1



Revenues

Revenue Sources

User Fees (1,075)

Total Revenue Sources (1,075)

Total Revenues (1,075)

Total Treatment Wastewater 3,910,073 2,978,983 4,129,010 4,145,650 4,145,650 0.4% 16,640

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Treatment Wastewater Run Date: 10/18/13 1:32 PM

W&WW by Object

8


Department Wastewater Division - Program Collection Purpose

Collection expenses for municipal wastewater services including personnel, materials & supplies, purchased services and fleet.



Overall, Wastewater Collection decreased 0.1% or $490. Personnel increased 2.0% or $7,700 based on a 2% negotiated wage settlement, projected benefit costs and 2014 planned work schedules. Materials & Supplies increased 0.6% or $480 mainly for increases in natural gas costs. Purchased Services increased 3.5% or $5,500 for subcontracting and flushing/video costs. Fleet decreased 26.0% or $14,170 based on projected usage within Wastewater.

2014 Proposed Service Level Changes None Key Service Indicators Total kms of wastewater pipe including connections 412 km Total number of wastewater pumping stations 72

9

Expenditures

Operating Costs

Personnel 411,603 254,172 380,000 387,700 387,700 2.0% 7,700

Materials & Supplies 43,874 28,658 78,600 79,080 79,080 0.6% 480

Purchased Services 119,452 71,800 155,660 161,160 161,160 3.5% 5,500



Fleet 62,507 29,032 54,450 40,280 40,280 (26.0%) (14,170)


Total Expenditures 637,436 383,662 668,710 668,220 668,220 (0.1%) (490)

Total Collection Wastewater 637,436 383,662 668,710 668,220 668,220 (0.1%) (490)

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Collection Wastewater Run Date: 10/18/13 1:32 PM

W&WW by Object

10


Department Wastewater Division - Program Support Services, Revenue and Capital Financing Purpose

Operating costs related to the provision of municipal wastewater services including property taxes for District facilities. Finance charges for capital wastewater projects including principal and interest payments and transfers to reserve funds. Net internal service charges for the administration of municipal wastewater services. Revenue including District metered and non-metered user fees, connection fees and local improvement charges and supplementary taxes.



Operating Costs decreased 4.1% or $6,700 for property taxes. Finance Charges/Reserves increased 2.5% or $185,401 based on the final payment of an external debenture, the issuance of a new internal loan and an increase in the reserve fund contribution. Net Internal Service Charges decreased 3.0% or $8,898 mainly for the decreased administration costs for engineering services. Revenues decreased 0.6% or $40,706 based on decreases in local improvement charges ($26,450) and in supplementary taxes ($33,390), which are offset in part by a recommended increase to Wastewater user fees ($19,134).


Key Service Indicators (Projected to December 31, 2013)

Total number of wastewater customers 9,850 Consumption billed (cubic metres) 2,162,500 Number of haulers using wastewater treatment plants 8 Number of cubic metres of septage discharged at plants 1,975

11

Expenditures

Operating Costs

Materials & Supplies 136,498 89,501 162,000 155,300 155,300 (4.1%) (6,700)

Total Operating Costs 136,498 89,501 162,000 155,300 155,300 (4.1%) (6,700)


Finance Charges 5,610,112 3,357,151 5,513,963 5,299,364 5,299,364 (3.9%) (214,599)

Reserves 2,153,278 1,425,000 1,900,000 2,300,000 2,300,000 21.1% 400,000






Revenues

Revenue Sources

User Fees (6,654,777) (4,765,945) (6,614,432) (6,633,566) (6,633,566) 0.3% (19,134)




Other (3,525)


Total Revenues (7,203,239) (5,202,643) (7,102,792) (7,062,086) (7,062,086) (0.6%) 40,706

Total Support Services, Revenue and Capital Financing W 969,147 (146,319) 771,469 981,978 981,978 27.3% 210,509

2012

Year-end

Actuals

2013

YTD

Actuals

2013

Budget

2014

Base

Budget

2014

Service Level

Change

2014

Total Budget

Requested

Percentage

Change

Dollar

Change


Support Services, Revenue and Capital Financing Wastewater Run Date: 10/18/13 1:32 PM

W&WW by Object

12


Collection Wastewater 7,905,000 5,870,000 4,300,000 4,285,000 2,630,000 3,033,000 3,122,000 2,520,000 1,105,000 1,155,000 2,465,000 16,500,000

Treatment Wastewater 18,000,300 1,150,000 2,900,000 8,800,000 10,100,000 8,000,000 1,500,000 2,000,000 2,000,000 4,000,000 2,000,000 20,400,000

Non-Tangible Capital Asset Projects 926,175 500,000 575,000 425,000 875,000 725,000 675,000 625,000 625,000 575,000 425,000 5,450,000

Close Once Final Transactions Posted Wastewater 765,000


Project Financing

Financing From Own Funds

Collection Wastewater (7,875,000) (3,925,600) (3,996,000) (4,225,000) (2,526,000) (2,738,000) (3,122,000) (2,520,000) (1,105,000) (1,155,000) (2,240,000) (16,500,000)

Treatment Wastewater (9,196,966) (1,150,000) (2,900,000) (8,800,000) (10,100,000) (8,000,000) (1,500,000) (2,000,000) (2,000,000) (4,000,000) (2,000,000) (20,400,000)

Non-Tangible Capital Asset Projects (926,175) (500,000) (575,000) (425,000) (875,000) (725,000) (675,000) (625,000) (625,000) (575,000) (425,000) (5,450,000)

Close Once Final Transactions Posted Wastewater (645,000)

Total Financing From Own Funds (18,643,141) (5,575,600) (7,471,000) (13,450,000) (13,501,000) (11,463,000) (5,297,000) (5,145,000) (3,730,000) (5,730,000) (4,665,000) (42,350,000)

Debentures

Grants

Treatment Wastewater (8,803,334)

Total Grants (8,803,334)

External Sources

Collection Wastewater (30,000) (1,944,400) (304,000) (60,000) (104,000) (295,000) (225,000)

Close Once Final Transactions Posted Wastewater (120,000)

Total External Sources (150,000) (1,944,400) (304,000) (60,000) (104,000) (295,000) (225,000)


Net Project

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Wastewater


Run Date: 10/8/13 3:09 PM


1


Collection Wastewater

Local Improvement Wastewater

HV Hidden Valley 412.385411022 200,000 3,875,000 400,000

HV Madeline St LI Sewer Extension 412.388411023 50,000

Total Local Improvement Wastewater 200,000 3,875,000 450,000

Significant Growth Related System Expansion Wastewater

BB Trunk Main from Inveraray Crt to MR 118 410.78411024 1,300,000

BB Trunk Main Sellens N 410.786411025 1,500,000

BB Trunk Main MR 4 from Meadow to Sellens 410.8411026 680,000

HV North End Servicing 412.766411027 1,500,000

Total Significant Growth Related System Expansion Wastew 1,500,000 680,000 1,300,000 1,500,000

Pumping Station Large

BB Royal Muskoka SPS 410.319413016 20,000 70,000

BB Dill St SPS Pump & Mixer413017 95,000

BB Beaumont Dr SPS Controls413018 400,000

BB Dill St SPS Screening413019 150,000

HV Grandview Main SPS #27 412.349413028 70,000

PS SPS #2 413.301413043 15,000 65,000

PS Sewage Influent SPS 413.303413045 15,000 65,000

PS SPS #1 413.783413047 15,000 65,000

BALA SPS #1 415.778413048 20,000 80,000

BALA SPS #2 415.779413049 20,000 80,000

GH Knister Variable Frequency Drive413079 60,000

GH Beaver Creek SPS (Bldg/Pump/Control Upgrade413080 150,000 150,000

HV Ferguson Rd SPS #12 Electrical Systems Upgra413087 90,000

GH Replace Generator at Taboo SPS413096 150,000

BB Replace Generator at Beaumont Dr SPS413097 100,000

Total Pumping Station Large 95,000 170,000 570,000 180,000 105,000 100,000 150,000 215,000 210,000 150,000

Pumping Station Small

BB Milton & Golf Course SPS #8413012 10,000 50,000

BB Robert Dollar SPS #3 410.309413013 20,000 80,000

GH Woodman's SPS 411.331413022 20,000 80,000

GH Hedgewood SPS 410.332413023 20,000 80,000

GH WTP SPS 411.780413025 100,000

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Wastewater


Run Date: 10/8/13 3:09 PM


3

HV Lake Dr SPS #14 412.363413031 5,000 45,000

HV Lakeside SPS #29 412.376413034 5,000 45,000

HV Grandview SPS #22A 412.378413036 5,000 45,000

HV Treetops SPS #22B 412.379413037 5,000 45,000

HV Turner Dr SPS #18 412.380413038 50,000

HV King St SPS #9 412.381413039 5,000 55,000

HV Crescent Bay SPS #28 412.382413040 10,000 80,000

PS SPS #3 413.302413044 15,000 65,000

GH Wagner St SPS413081 10,000 65,000

GH Segwun & Caroline SPS/Various Control Monito413082 60,000 60,000

HV Electrical Upgrades Various SPS413084 5,000 45,000 10,000 50,000

HV Highlands SPS #15413085 10,000 120,000

HV Cliff Ave SPS #7 / WTP PS #4 Electrical Panels413086 5,000 55,000

BB Veldor SPS413089 18,000 72,000

BB Ridge Valley SPS413090 10,000 40,000

Total Pumping Station Small 125,000 165,000 120,000 215,000 105,000 113,000 262,000 190,000 80,000 10,000 90,000 100,000

Pumping Station Significant Growth Related

BB River Rd SPS Expansion 410.768413005 3,100,000 200,000

HV Church St PS Upgrade 412.782413009 3,900,000 300,000

BB Sewer & Forcemain Robert Dollar Dr413050 100,000 400,000

HV Ferguson Rd SPS Expansion413051 100,000 400,000

HV Hodges Lane SPS Expansion413052 200,000 2,800,000

HV Twin Hodges PS Forcemain 412.800413077 2,100,000

HV Twin Hodges PS Forcemain West to Main413088 210,000

HV Coveside Dr SPS Expansion413092 3,500,000

HV Coveside Dr SPS Forcemain413094 1,500,000

GH Taboo SPS Expansion413098 3,000,000

Total Pumping Station Significant Growth Related 7,210,000 500,000 2,300,000 3,000,000 800,000 8,000,000

Replacements/Upgrade Wastewater

BB Replace/Reline Buildall Easement (350m) 410.3411041 50,000 220,000

BB James St Sewer from Anne to Chub Downey411044 105,000

BB James St from Anne to MacDonald 410.321411049 50,000 220,000

BB Replace/Reline Bird & Richard from Taylor to Wo411065 50,000 220,000

BB Service Transfers on Taylor from Woodchester t411066 20,000 80,000

BB Valley Lane (Wellington Crt to End)411079 150,000

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Wastewater


Run Date: 10/8/13 3:09 PM


4

GH Phillip St from 5th St to 4th St411080 30,000 120,000

BB Taylor from Toronto to Front411086 50,000 450,000

BB Spadina St Sewer411087 25,000 100,000

HV King William from Church to Chaffey411088 20,000 130,000

BB Liddard St from Creek to Aubrey St411094 20,000 240,000

BB Dill St from Church to Victoria St411095 230,000

BB Ontario St from Church to Kimberly St411096 10,000 120,000

BB Air Relief Valve Replacement411097 50,000 50,000

PC Forcemain Medora to Pollution Control Plant411098 200,000

PC Forcemain West St SPS to Medora411099 800,000

GH Fernwood Dr from Pratt Cres to Fernwood SPS411100 50,000 150,000

GH Cherokee Ln P15-P19411101 50,000 150,000

Total Replacements/Upgrade Wastewater 105,000 430,000 620,000 300,000 510,000 445,000 1,050,000 70,000 550,000 130,000

Rehabilitation Wastewater

HV Various Sewer Rehabilitation Future411036 270,000 200,000 200,000 200,000 200,000 200,000 2,000,000

BB Various Sewer Rehabilitation Future411038 270,000 270,000 270,000 270,000 270,000 270,000 2,700,000

GH Crescent Dr from Kingswood Dr to Fairview Dr 4411043 30,000 200,000

BB Chub Downey from James to Hiram411045 10,000 90,000

GH Crescent Dr Reline 15 lateral tees/services 411.411046 30,000 200,000

GH Fairview Dr Reline 19 lateral tees/services411050 300,000

GH Pinedale from Pinegrove to Third St411053 30,000 200,000

GH Park Ln Reline 19 lateral tees/services411054 75,000 225,000

HV Mountview and Mill St Easement Sewer Replace411061 20,000 130,000

BB Replace/Reline Front St from Taylor to Woodwa411062 500,000

GH David from First to Muskoka411067 30,000 220,000

PC Various Sewer Rehabilitation Future411069 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 450,000

GH Various Sewer Rehabilitation Future411070 2,300,000

HV No Dig Rehab 2014 (Various Locations)411074 50,000

HV Main St W Sewer Replacement (Centre to Lorne411081 15,000 200,000

HV George St Sewer Replacement (Wilmott to End)411082 30,000 200,000

HV Main St E Sewer Replacement (Centre to West)411083 20,000 180,000

HV Main St E Sewer Replacement (West to Brunel)411084 30,000 210,000

GH David from First to Bethune411085 30,000 220,000

PC Various Sewer Rehab 2013411089 50,000

HV No Dig Rehab 2013 (Various Locations)411093 50,000

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Wastewater


Run Date: 10/8/13 3:09 PM


5

BB Sewer Relines411102 30,000 270,000

BB Holditch Sewer Rehabilitation411103 110,000

GH Bay St N of John St to Sarah St411104 75,000 225,000

GH Brock St from First to Bethune411105 75,000 225,000

GH Second St Easement from Royal to Phillip411106 75,000 225,000

HV West Rd Sewer Replacement (D60-D63)411107 120,000

PC Various Sewer Rehabilitation 2014411108 50,000

Total Rehabilitation Wastewater 170,000 730,000 240,000 590,000 1,110,000 875,000 980,000 815,000 745,000 595,000 745,000 8,250,000

Total Collection Wastewater 7,905,000 5,870,000 4,300,000 4,285,000 2,630,000 3,033,000 3,122,000 2,520,000 1,105,000 1,155,000 2,465,000 16,500,000

Treatment Wastewater

Plant Wastewater

GH STP Equipment Replacement & Minor Upgrade411013 745,000

BALA STP Upgrade 415.777412018 1,235,000

PS Sewage Plant Rehabilitation412030 400,000

BB Lagoon Lane STP Control Building412037 100,000 1,400,000

GH STP Replace Blowers412038 400,000 500,000

GH STP Replace Aeration System412041 200,000

HV GP STP Replace Aeration System412042 200,000

HV GP STP Filter #1 Condition Assessment & Repa412043 140,000

HV GP STP Filter Recoating412044 300,000

HV GP STP Filter #2 & #3 Condition Assessment & 412050 280,000

BB Lagoon Lane STP Alkalinity Control412051 200,000

Bala STP UV System Replacement412052 200,000

PS STP UV System Replacement412053 200,000

GH STP UV System Replacement412054 400,000

HV GP Clarifier Rehab / Sludge Receiving Automati412055 100,000

BB Generator for Lagoon Ln IPS412057 150,000

HV GP STP Alkalinity Control412061 600,000

Total Plant Wastewater 3,000,000 1,150,000 1,900,000 800,000 500,000 400,000

Significant Growth Related Plant Wastewater

PC STP Expansion 416.719412010 14,150,000

BB Lagoon Lane STP Headworks 410.806412020 500,000 6,500,000

GH STP Expansion 411.759412021 20,000,000

HV Mountview STP Expansion & Upgrade 412.801412024 500,000 1,500,000 9,600,000 8,000,000

HV GP Process Upgrades 412.803412025 1,000,000 4,000,000 2,000,000

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Wastewater


Run Date: 10/8/13 3:09 PM


6

PS STP Upgrade 413.782412026 1,500,000 2,000,000 1,000,000

HV MV STP EA & Engineering412045 400,000

BB Lagoon Lane STP Completion412049 450,300

Total Significant Growth Related Plant Wastewater 15,000,300 1,000,000 8,000,000 9,600,000 8,000,000 1,500,000 2,000,000 2,000,000 4,000,000 2,000,000 20,000,000

Total Treatment Wastewater 18,000,300 1,150,000 2,900,000 8,800,000 10,100,000 8,000,000 1,500,000 2,000,000 2,000,000 4,000,000 2,000,000 20,400,000

Non-Tangible Capital Asset Projects

Inspections

DMM Wastewater Quality Regulations Future419001 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000

DMM Wastewater Quality Regulations 2014419002 50,000

Total Inspections 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000

Repairs and Maintenance

BB MH Repairs Future411032 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 750,000

HV MH Repairs Future411034 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 750,000

GH Maintenance Access Hole Repairs Future411040 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 750,000

BB MH Repairs 2013411090 75,000

HV MH Repairs 2013411091 75,000

GH MH Repairs 2013411092 75,000

BB MH Repairs 2014411109 75,000

HV MH Repairs 2014411110 75,000

GH Maintenance Access Hole Repairs 2014411111 75,000

Bala MH Repairs Future411112 500,000

PS MH Repairs Future411113 500,000

HV Centrifuge Overhaul Future 412.714412027 50,000 50,000 50,000 150,000

HV STP Clean Digesters Future412028 100,000 100,000 200,000

GH STP Clean Digesters Future 411.749412029 100,000 100,000 200,000

DMM SCADA Upgrades412033 160,000

DMM Automatic Transfer Switch Upgrades 2011-20412034 150,000

GH Centrifuge Overhaul Future412040 50,000 50,000 50,000 150,000

DMM Replace Programmable Logic Controllers412046 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000

DMM Replace Surge Protectors412047 50,000

HV Mountview STP Improvements 2013412048 200,000

HV Stephenson Sludge Cleaning Cell #2412056 75,000

BB Lagoon Lane Sludge Cleaning412058 300,000 300,000

BB Lagoon Ln Sludge Haulage & Tipping Fees412059 100,000 100,000

BB Lagoon Lane Sludge Cleaning Cell #3412060 300,000 200,000

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Wastewater


Run Date: 10/8/13 3:09 PM


7

GH Centrifuge Overhaul 2014412062 50,000

DMM - Variable Drives Future413078 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000

BB Low Pressure Stations 2013413091 50,000

BB Low Pressure Stations Future413093 50,000 50,000 50,000

DMM - Variable Drives 2013413095 50,000

DMM Variable Drives 2014413099 50,000

BB Low Pressure Stations 2014413100 50,000

Total Repairs and Maintenance 885,000 450,000 525,000 375,000 825,000 675,000 625,000 575,000 575,000 525,000 375,000 4,950,000

Post Closing Costs

Post Closing Project Costs - Wastewater419900 41,175

Total Post Closing Costs 41,175

Total Non-Tangible Capital Asset Projects 926,175 500,000 575,000 425,000 875,000 725,000 675,000 625,000 625,000 575,000 425,000 5,450,000

Close Once Final Transactions Posted Wastewater

Close Once Final Transactions Posted Wastewater

GH Pinegrove from Kingswood to Pinedale411051 585,000

HV GP STP Alkalinity, Screen & Gas System 412.38412023 180,000

Total Close Once Final Transactions Posted Wastewater 765,000

Total Close Once Final Transactions Posted Wastewater 765,000


Project Financing

Financing From Own Funds (18,643,141) (5,575,600) (7,471,000) (13,450,000) (13,501,000) (11,463,000) (5,297,000) (5,145,000) (3,730,000) (5,730,000) (4,665,000) (42,350,000)

Debentures

Grants (8,803,334)

External Sources (150,000) (1,944,400) (304,000) (60,000) (104,000) (295,000) (225,000)


Net Project

LTD

Amended

Budget

2014

Budget

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Years

11 - 20

Forecast

Wastewater


Run Date: 10/8/13 3:09 PM


8

H:\F-Finance\F05 - Budgets & Estimates\RS4 - Rate Supported - Budget Documents\2014\Binder\3 2014 Index Sources Of Financing.Docx

2014 Draft Rate Supported Operating Budget and 2014 Draft Capital Budget and Forecast

Sources of Financing

INDEX Page Number

Reserve Funds

Wastewater Capital Reserve Fund 1 – 4

Wastewater Development Charges 5 – 6

Sustainable Infrastructure Reserve Fund 7 – 8

Environmental Reserve Fund 9 – 11

Water Capital Reserve Fund 12 – 15

Water Development Charges 16

Debt Reduction Reserve Fund 17

Other Sources of Financing

Municipal Contribution 18 – 20

Prepaid Special Charges 21

Opening Balance 6,792,148 5,601,321 3,707,352 2,478,475 3,676,719 2,957,122 (403,386) 311,614 1,053,937 1,903,705 2,953,442 4,097,848

Capital Project Commitments


Asset Management System130113 (50,000)

GH STP Equipment Replacement & Minor Upg411013 (57,935)

HV Hidden Valley 412.385411022 (200,000) (1,990,600) (400,000)

HV Madeline St LI Sewer Extension 412.388411023 (30,000)

BB MH Repairs Future411032 (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (750,000)

HV MH Repairs Future411034 (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (750,000)

HV Various Sewer Rehabilitation Future411036 (270,000) (200,000) (200,000) (200,000) (200,000) (200,000) (2,000,000)

BB Various Sewer Rehabilitation Future411038 (270,000) (270,000) (270,000) (270,000) (270,000) (270,000) (2,700,000)

GH Maintenance Access Hole Repairs Future411040 (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (750,000)

BB Replace/Reline Buildall Easement (350m) 4411041 (50,000) (220,000)

GH Crescent Dr from Kingswood Dr to Fairview411043 (30,000) (140,000)

BB James St Sewer from Anne to Chub Downe411044 (46,651)

BB Chub Downey from James to Hiram411045 (10,000) (90,000)

GH Crescent Dr Reline 15 lateral tees/services411046 (30,000) (200,000)

BB James St from Anne to MacDonald 410.32411049 (50,000) (150,000)

GH Pinegrove from Kingswood to Pinedale411051 116,060

GH Pinedale from Pinegrove to Third St411053 (30,000) (140,000)

HV Cora St Sewer Replacement (G130-G65)411058 (3,306)

HV West Rd Sewer Replacement (D60-D63) 2411060 (163)

HV Mountview and Mill St Easement Sewer Re411061 (20,000) (130,000)

BB Replace/Reline Front St from Taylor to Woo411062 (500,000)

BB Service Transfers on Taylor from Woodche411066 (20,000) (80,000)

GH David from First to Muskoka411067 (30,000) (220,000)

PC Various Sewer Rehabilitation Future411069 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (450,000)

GH Various Sewer Rehabilitation Future411070 (2,300,000)

HV No Dig Rehab 2014 (Various Locations)411074 (50,000)

BB Valley Lane (Wellington Crt to End)411079 (150,000)

GH Phillip St from 5th St to 4th St411080 (30,000) (120,000)

HV Main St W Sewer Replacement (Centre to 411081 (15,000) (180,000)

HV George St Sewer Replacement (Wilmott to411082 (30,000) (200,000)

HV Main St E Sewer Replacement (Centre to W411083 (20,000) (180,000)

BB Spadina St Sewer411087 (25,000) (100,000)

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years

Wastewater Capital Reserve FundRun Date: 10/8/13 4:02 PM

Reserve Funds 20 yearCapital Budget

1

HV King William from Church to Chaffey411088 (20,000) (130,000)

PC Various Sewer Rehab 2013411089 (50,000)

BB MH Repairs 2013411090 (75,000)

HV MH Repairs 2013411091 (75,000)

GH MH Repairs 2013411092 (75,000)

HV No Dig Rehab 2013 (Various Locations)411093 (50,000)

BB Liddard St from Creek to Aubrey St411094 (20,000) (180,000)

BB Dill St from Church to Victoria St411095 (176,000)

BB Ontario St from Church to Kimberly St411096 (10,000) (96,000)

BB Air Relief Valve Replacement411097 (50,000) (50,000)

PC Forcemain Medora to Pollution Control Pla411098 (200,000)

GH Fernwood Dr from Pratt Cres to Fernwood 411100 (50,000) (150,000)

GH Cherokee Ln P15-P19411101 (50,000) (150,000)

BB Sewer Relines411102 (30,000) (270,000)

BB Holditch Sewer Rehabilitation411103 (110,000)

GH Bay St N of John St to Sarah St411104 (75,000) (225,000)

GH Brock St from First to Bethune411105 (75,000) (225,000)

HV West Rd Sewer Replacement (D60-D63)411107 (120,000)

PC Various Sewer Rehabilitation 2014411108 (50,000)

BB MH Repairs 2014411109 (75,000)

HV MH Repairs 2014411110 (75,000)

GH Maintenance Access Hole Repairs 2014411111 (75,000)

PS MH Repairs Future411113 (500,000)

HV Mountview STP Expansion & Upgrade 412412024 (1,000,000) (4,000,000)

HV STP Clean Digesters Future412028 (100,000) (100,000) (200,000)

PS Sewage Plant Rehabilitation412030 (333,759)

DMM SCADA Upgrades412033 (48,874)

DMM Automatic Transfer Switch Upgrades 201412034 (137,629)

BB Lagoon Lane STP Control Building412037 (100,000) (100,000) (1,400,000)

HV GP STP Filter Recoating412044 (300,000)

DMM Replace Programmable Logic Controllers412046 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (500,000)

DMM Replace Surge Protectors412047 (50,000)

HV Mountview STP Improvements 2013412048 (128,500)

Bala STP UV System Replacement412052 (200,000)

PS STP UV System Replacement412053 (200,000)

GH STP UV System Replacement412054 (400,000)

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years



2

BB Generator for Lagoon Ln IPS412057 (150,000)

BB River Rd SPS Expansion 410.768413005 (500,000) (30,000)

HV Church St PS Upgrade 412.782413009 (148,786) (15,000)

BB Robert Dollar SPS #3 410.309413013 (20,000) (80,000)

BB Dill St SPS Screening413019 (150,000)

BB Sewer & Forcemain Robert Dollar Dr413050 (50,000) (200,000)

HV Ferguson Rd SPS Expansion413051 (50,000) (200,000)

DMM - Variable Drives Future413078 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (500,000)

GH Knister Variable Frequency Drive413079 (60,000)

GH Wagner St SPS413081 (10,000) (65,000)

GH Segwun & Caroline SPS/Various Control M413082 (53,245) (60,000)

HV Electrical Upgrades Various SPS413084 (5,000) (45,000) (10,000) (50,000)

HV Highlands SPS #15413085 (10,000) (120,000)

HV Cliff Ave SPS #7 / WTP PS #4 Electrical Pa413086 (5,000) (55,000)

BB Low Pressure Stations 2013413091 (50,000)

HV Coveside Dr SPS Expansion413092 (1,750,000)

BB Low Pressure Stations Future413093 (50,000) (50,000) (50,000)

DMM - Variable Drives 2013413095 (50,000)

GH Replace Generator at Taboo SPS413096 (150,000)

BB Replace Generator at Beaumont Dr SPS413097 (100,000)

GH Taboo SPS Expansion413098 (1,500,000)

DMM Variable Drives 2014413099 (50,000)

BB Low Pressure Stations 2014413100 (50,000)

DMM Wastewater Quality Regulations Future419001 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (500,000)

DMM Wastewater Quality Regulations 2014419002 (50,000)

Post Closing Project Costs - Wastewater419900 (7,326)

Total Capital Project Commitments (2,245,114) (4,325,600) (3,216,000) (1,660,000) (3,506,000) (5,630,000) (1,185,000) (1,165,000) (975,000) (1,095,000) (1,025,000) (16,200,000)

Total Capital Project Commitments (2,245,114) (4,325,600) (3,216,000) (1,660,000) (3,506,000) (5,630,000) (1,185,000) (1,165,000) (975,000) (1,095,000) (1,025,000) (16,200,000)

Transfers Out

Transfers to Revenue Fund

Total Transfers Out

Total Expenditures Against Reserve Fund 2,245,114 4,325,600 3,216,000 1,660,000 3,506,000 5,630,000 1,185,000 1,165,000 975,000 1,095,000 1,025,000 16,200,000

Transfers In

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years



3

Contributions from Revenue Fund 967,405 2,300,000 1,900,000 2,800,000 2,700,000 2,200,000 1,900,000 1,900,000 1,800,000 2,100,000 2,100,000 21,500,000

Total Transfers In 967,405 2,300,000 1,900,000 2,800,000 2,700,000 2,200,000 1,900,000 1,900,000 1,800,000 2,100,000 2,100,000 21,500,000

Closing Balance Before Interest 5,514,439 3,575,721 2,391,352 3,618,475 2,870,719 (472,878) 311,614 1,046,614 1,878,937 2,908,705 4,028,442 9,397,848

Interest Income 86,882 131,631 87,123 58,244 86,403 69,492 7,323 24,768 44,737 69,406 96,299

Closing Balance 5,601,321 3,707,352 2,478,475 3,676,719 2,957,122 (403,386) 311,614 1,053,937 1,903,705 2,953,442 4,097,848 9,494,147

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years



4

Opening Balance (2,234,202) 462,847 (1,559,966) (4,748,293) (4,001,203) (3,923,642) (270,556) (1,311,889) 862,415 957,679 1,285,931



HV Madeline St LI Sewer Extension 412.388411023 (20,000)

BB Trunk Main from Inveraray Crt to MR 118 4411024 (1,105,000)

BB Trunk Main Sellens N 410.786411025 (1,275,000)

BB Trunk Main MR 4 from Meadow to Sellens 411026 (680,000)

HV North End Servicing 412.766411027 (1,275,000)

Bala MH Repairs Future411112 (500,000)

PC STP Expansion 416.719412010 (1,157,648)

BB Lagoon Lane STP Headworks 410.806412020 (250,000) (3,250,000)

GH STP Expansion 411.759412021 (16,000,000)

HV Mountview STP Expansion & Upgrade 412412024 (250,000) (750,000) (4,800,000) (4,000,000)

HV GP Process Upgrades 412.803412025 (500,000) (2,000,000) (1,000,000)

PS STP Upgrade 413.782412026 (1,500,000) (2,000,000) (1,000,000)

HV MV STP EA & Engineering412045 (200,000)

BB Lagoon Lane STP Completion412049 (450,300)


HV Church St PS Upgrade 412.782413009 (78,000) (6,000)

BALA SPS #1 415.778413048 (20,000) (80,000)

BALA SPS #2 415.779413049 (20,000) (80,000)

BB Sewer & Forcemain Robert Dollar Dr413050 (50,000) (200,000)

HV Ferguson Rd SPS Expansion413051 (50,000) (200,000)

HV Hodges Lane SPS Expansion413052 (100,000) (1,400,000)

HV Twin Hodges PS Forcemain 412.800413077 (1,850,000)

HV Twin Hodges PS Forcemain West to Main413088 (192,397)

HV Coveside Dr SPS Expansion413092 (1,750,000)

HV Coveside Dr SPS Forcemain413094 (1,500,000)

GH Taboo SPS Expansion413098 (1,500,000)

Total Capital Project Commitments (2,822,446) (186,000) (2,570,000) (5,580,000) (5,200,000) (5,275,000) (2,180,000) (3,105,000) (1,500,000) (2,000,000) (2,275,000) (21,250,000)

Total Capital Project Commitments (2,822,446) (186,000) (2,570,000) (5,580,000) (5,200,000) (5,275,000) (2,180,000) (3,105,000) (1,500,000) (2,000,000) (2,275,000) (21,250,000)

Transfers Out


Total Transfers Out

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years

Wastewater Development ChargesRun Date: 10/8/13 4:02 PM


5

Total Expenditures Against Reserve Fund 2,822,446 186,000 2,570,000 5,580,000 5,200,000 5,275,000 2,180,000 3,105,000 1,500,000 2,000,000 2,275,000 21,250,000

Transfers In

Contributions from Revenue Fund - Development Charges 588,244 531,000 536,310 541,673 547,090 552,561 558,086 563,667 569,304 574,997 580,747 5,807,470

DC Debt - Debt Reduction Reserve Fund 2,352,049 1,850,000 5,400,000 4,800,000 5,275,000 1,500,000 3,105,000 1,500,000 2,000,000

Total Transfers In 588,244 2,883,049 536,310 2,391,673 5,947,090 5,352,561 5,833,086 2,063,667 3,674,304 2,074,997 2,580,747 5,807,470

Closing Balance Before Interest (2,234,202) 462,847 (1,570,843) (4,748,293) (4,001,203) (3,923,642) (270,556) (1,311,889) 862,415 937,412 1,263,426 (14,156,599)

Interest Income 10,877 20,267 22,505 30,219

Closing Balance (2,234,202) 462,847 (1,559,966) (4,748,293) (4,001,203) (3,923,642) (270,556) (1,311,889) 862,415 957,679 1,285,931 (14,126,380)

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years

Wastewater Development ChargesRun Date: 10/8/13 4:02 PM


6

Opening Balance 612,791 (8,642) 326,358 (35,973) 248,027 (1,777,464) (33,410) 516,725 1,030,805 974,505 305,171 1,079,164



GH Fairview Dr Reline 19 lateral tees/services411050 (300,000)

GH Park Ln Reline 19 lateral tees/services411054 (75,000) (225,000)

BB Replace/Reline Bird & Richard from Taylor 411065 (50,000) (220,000)

HV Main St E Sewer Replacement (West to Br411084 (30,000) (210,000)

GH David from First to Bethune411085 (30,000) (220,000)

BB Taylor from Toronto to Front411086 (50,000) (450,000)

PC Forcemain West St SPS to Medora411099 (800,000)

GH Second St Easement from Royal to Phillip411106 (75,000) (225,000)

GH STP Expansion 411.759412021 (4,000,000)

HV Mountview STP Expansion & Upgrade 412412024 (250,000) (750,000) (3,800,000)

HV GP Process Upgrades 412.803412025 (500,000) (2,000,000) (1,000,000)

GH STP Replace Aeration System412041 (200,000)

HV GP STP Replace Aeration System412042 (200,000)

HV Church St PS Upgrade 412.782413009 (1,062,227) (145,000)

GH Beaver Creek SPS (Bldg/Pump/Control Up413080 (150,000) (150,000)

BB Spencer from Andrea to Santa's Village Rd431024 (60,000) (240,000)

GH Reline/Replace Various Cast Iron WM431052 (3,000,000)

HV Hidden Valley Area WM Replacement431059 (1,070,000)

GH Brydon Bay Loop - Gravenhurst 421.627431074 (800,000)

GH Replace WTP Filter Coatings 421.654432002 3,011

BALA WTP Modification Phase II 425.683432007 (380,102)

HV WTP Phase III 422.707432012 (160,000) (320,000) (120,000)

HV WTP Phase II HVAC System & Misc. Reha432013 (941,480)

MT WTP Modifications 424.686432015 (100,000) (1,400,000) (500,000)

PC Water Treatment Plant Rehabilitation 426.6432017 (4,000,000)

GH Filter Underdrains & Scour System432031 (750,000) (750,000)

BALA WTP Rehabilitation432037 (4,000,000)

GH Repair/Paint Fairview Tower 421.605434005 (600,000)

GH Repair/Paint Beach Road Tower 421.607434006 (800,000)

BB Paint Hamblin Tank Future434015 (350,000)

Total Capital Project Commitments (2,380,798) (1,365,000) (2,070,000) (1,450,000) (3,800,000) (60,000) (1,290,000) (1,375,000) (1,995,000) (2,645,000) (1,225,000) (17,850,000)

Total Capital Project Commitments (2,380,798) (1,365,000) (2,070,000) (1,450,000) (3,800,000) (60,000) (1,290,000) (1,375,000) (1,995,000) (2,645,000) (1,225,000) (17,850,000)

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years

Sustainable Infrastructure Reserve FundRun Date: 10/8/13 4:02 PM


7

Transfers Out


Total Transfers Out

Total Expenditures Against Reserve Fund 2,380,798 1,365,000 2,070,000 1,450,000 3,800,000 60,000 1,290,000 1,375,000 1,995,000 2,645,000 1,225,000 17,850,000

Transfers In

Federal Gas Tax Rebate 1,759,365 1,700,000 1,700,000 1,734,000 1,768,680 1,804,054 1,840,135 1,876,937 1,914,476 1,952,766 1,991,821 19,918,210

Total Transfers In 1,759,365 1,700,000 1,700,000 1,734,000 1,768,680 1,804,054 1,840,135 1,876,937 1,914,476 1,952,766 1,991,821 19,918,210

Closing Balance Before Interest (8,642) 326,358 (43,642) 248,027 (1,783,293) (33,410) 516,725 1,018,662 950,281 282,271 1,071,992 3,147,374

Interest Income 7,669 5,829 12,143 24,224 22,901 7,172 25,360

Closing Balance (8,642) 326,358 (35,973) 248,027 (1,777,464) (33,410) 516,725 1,030,805 974,505 305,172 1,079,164 3,172,734

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years

Sustainable Infrastructure Reserve FundRun Date: 10/8/13 4:02 PM


8

Opening Balance 4,443,963 1,831,499 3,302,539 4,575,149 1,635,165 2,793,591 4,711,241 6,094,955 8,013,186 10,206,496 12,706,349 15,269,948



BB Trunk Main from Inveraray Crt to MR 118 4411024 (195,000)

PC STP Expansion 416.719412010 200,000

BALA STP Upgrade 415.777412018 (1,212,372)

BB Lagoon Lane STP Headworks 410.806412020 (250,000) (3,250,000)

HV GP STP Alkalinity, Screen & Gas System 4412023 (6,722)

HV Centrifuge Overhaul Future 412.714412027 (50,000) (50,000) (50,000) (150,000)

GH STP Clean Digesters Future 411.749412029 (100,000) (100,000) (200,000)

PS Sewage Plant Rehabilitation412030 (32,360)

GH STP Replace Blowers412038 (400,000) (500,000)

GH Centrifuge Overhaul Future412040 (50,000) (50,000) (50,000) (150,000)

HV GP STP Filter #1 Condition Assessment & 412043 (81,297)

HV MV STP EA & Engineering412045 (200,000)

HV Mountview STP Improvements 2013412048 (71,500)

HV GP STP Filter #2 & #3 Condition Assessme412050 (280,000)

BB Lagoon Lane STP Alkalinity Control412051 (200,000)

HV GP Clarifier Rehab / Sludge Receiving Auto412055 (100,000)

HV Stephenson Sludge Cleaning Cell #2412056 (75,000)

BB Lagoon Lane Sludge Cleaning412058 (300,000) (300,000)

BB Lagoon Ln Sludge Haulage & Tipping Fees412059 (100,000) (100,000)

BB Lagoon Lane Sludge Cleaning Cell #3412060 (300,000) (200,000)

HV GP STP Alkalinity Control412061 (600,000)

GH Centrifuge Overhaul 2014412062 (50,000)


HV Church St PS Upgrade 412.782413009 (1,372,000) (134,000)

BB Milton & Golf Course SPS #8413012 (10,000) (50,000)

BB Royal Muskoka SPS 410.319413016 (20,000) (70,000)

BB Dill St SPS Pump & Mixer413017 (95,000)

BB Beaumont Dr SPS Controls413018 (400,000)

GH Woodman's SPS 411.331413022 (20,000) (80,000)

GH Hedgewood SPS 410.332413023 (20,000) (80,000)

GH WTP SPS 411.780413025 (100,000)

HV Grandview Main SPS #27 412.349413028 (70,000)

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years

Environmental Reserve FundRun Date: 10/8/13 4:02 PM


9

HV Lake Dr SPS #14 412.363413031 (5,000) (45,000)

HV Lakeside SPS #29 412.376413034 (5,000) (45,000)

HV Grandview SPS #22A 412.378413036 (5,000) (45,000)

HV Treetops SPS #22B 412.379413037 (5,000) (45,000)

HV Turner Dr SPS #18 412.380413038 (49,923)

HV King St SPS #9 412.381413039 (5,000) (55,000)

HV Crescent Bay SPS #28 412.382413040 (10,000) (80,000)

PS SPS #2 413.301413043 (15,000) (65,000)

PS SPS #3 413.302413044 (15,000) (65,000)

PS Sewage Influent SPS 413.303413045 (15,000) (65,000)

PS SPS #1 413.783413047 (15,000) (65,000)

HV Hodges Lane SPS Expansion413052 (100,000) (1,400,000)

HV Ferguson Rd SPS #12 Electrical Systems U413087 (90,000)

BB Veldor SPS413089 (18,000) (72,000)

BB Ridge Valley SPS413090 (10,000) (40,000)

Watt Exfiltration Pond/Property/Rehabilitation 4495005 (44,755) (43,000)

Freeman Upgrade/Expansion 418.796495006 (177,200)

McLean Upgrade/Expansion495009 (37,500) (75,000) (50,000) (200,000)

Baxter Upgrade/Expansion Future495010 (37,500) (400,000)

Bracebridge Lagoon Upgrade/Expansion 2011495013 (84,429)

Franklin Exfiltration Pond Expansion Future495019 (15,000) (30,000) (20,000) (325,000)

Ryde Lagoon Property Acquisition495020 (400,000)

Mobile Dewatering Equipment495021 (250,000)

Watt Rehabilitation Future495022 (875,000)

Freeman Spray Irrigation Expansion Future495023 (60,000) (100,000) (125,000) (325,000)

Ryde Upgrade/Expansion & Property Future495024 (37,500) (75,000) (50,000) (325,000)

Stephenson Upgrade Future495025 (200,000) (250,000) (512,500)

Bracebridge Lagoon Upgrade/Expansion Futur495026 (37,500) (75,000) (50,000) (37,500) (287,500)

Medora Spray Irrigation Expansion Future495027 (437,500)

Power & Security - Various Sites495028 (120,000)

Baxter Upgrade/Expansion 2013-2015495032 (40,000) (145,000) (90,000)

McLean Upgrades 2014495033 (15,000)

Post-Closing Project Costs - Hauled Sewage495900 (60)

Total Capital Project Commitments (3,938,565) (1,072,000) (1,305,000) (5,547,500) (1,380,000) (648,000) (1,227,000) (725,000) (495,000) (240,000) (235,000) (4,287,500)

Total Capital Project Commitments (3,938,565) (1,072,000) (1,305,000) (5,547,500) (1,380,000) (648,000) (1,227,000) (725,000) (495,000) (240,000) (235,000) (4,287,500)

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years



10

Transfers Out


Total Transfers Out

Total Expenditures Against Reserve Fund 3,938,565 1,072,000 1,305,000 5,547,500 1,380,000 648,000 1,227,000 725,000 495,000 240,000 235,000 4,287,500

Transfers In

Contributions from Revenue Fund 1,290,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 25,000,000


Closing Balance Before Interest 1,795,398 3,259,499 4,497,539 1,527,649 2,755,165 4,645,591 5,984,241 7,869,955 10,018,186 12,466,496 14,971,349 35,982,448

Interest Income 36,101 43,040 77,610 107,516 38,426 65,649 110,714 143,231 188,310 239,853 298,599 358,844

Closing Balance 1,831,499 3,302,539 4,575,149 1,635,165 2,793,591 4,711,240 6,094,955 8,013,186 10,206,496 12,706,349 15,269,948 36,341,292

2013

Commitments

Budget

2014

Forecast

2015

Forecast

2016

Forecast

2017

Forecast

2018

Forecast

2019

Forecast

2020

Forecast

2021

Forecast

2022

Forecast

2023

Forecast

Future Years



11

Opening Balance 3,875,325 2,701,057 3,333,532 4,381,870 6,320,844 7,511,884 8,943,038 11,600,199 13,670,804 16,430,318 17,546,180 17,323,516



Asset Management System130113 (50,000)

BB Taylor Rd Watermain (Toronto to Pine) 420431015 (48,750) (221,250)

BB Richard from Taylor to Woodchester 420.70431019 (36,000) (134,000)

BB James from MacDonald to Ann 420.703431020 (67,500) (337,500)

BB 200m on Dawsonwood 420.704431021 (50,000) (200,000)

BB 40m on Shaw at Ecclestone 420.705431022 (5,000) (45,000)

BB Taylor Rd Lateral Transfers Front to Toront431023 (20,000) (80,000)

BB 128m on Spadina 420.708431025 (12,000) (48,000)

BB Holditch and Smith Reline 420.710431026 (119,925)

GH Old Muskoka from Muskoka Beach to MR 431031 (22,000) (88,000)

GH Transfer Laterals on First from Church to B431036 (82,997)

GH Walton from Muskoka Beach to Lofty Pines431039 (22,000) (88,000)

GH Bishop St from Third to Bethune 421.709431040 (15,000) (60,000)

GH Phillip St E from Fifth to Bethune 421.710431041 (38,000) (152,000)

GH Third St from Pinedale Rd to David St 421.431042 (9,000) (36,000)

GH Pinedale Rd from Third St to Bethune 421.431043 (10,000) (65,000)

GH Farquhar from John to Muskoka Rd 412.71431044 (10,000) (40,000)

GH Transfer Laterals on Bethune from Moody 431045 (57,998)

GH Wagner from John to Mary 421.715431046 (40,000) (25,000)

GH Kelly Dr from Hahne Easement North 421.431047 (20,000) (80,000)

GH Sharpe from First to Muskoka Rd 421.717431048 (95,000)

GH Beach Rd from Brydon Bay Rd to Maple H431049 (500,000)

GH Musquash Rd "B" (Hydrant #250) to MR 16431050 (373,993)

HV Scotts Point Replacement 422.641431054 (20,000) (310,000)

HV Scott from King William to Meadow Park 42431055 (60,000)

HV Madeline St WM Replacement 422.709431058 (30,000)

HV Hidden Valley Area WM Replacement431059 (100,000)

BALA WM Replacement Weismiller Lumber 42431061 (25,000) (100,000)

BB Watermain Rehab 420.605431062 (2,000,000)

GH Winewood from Sarah to Muskoka Rd Rep431063 (40,000) (450,000)

GH John from Winewood to Wagner Reline 42431064 (75,000) (225,000)

GH John St Easement from Wagner to Lorne R431065 (20,000) (85,000) (105,000)

2013

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2014

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2015

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2016

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2017

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2021

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2022

Forecast

2023

Forecast

Future Years

Water Capital Reserve FundRun Date: 10/8/13 4:02 PM


12

GH Brock from First to Bethune Reline 421.724431067 (20,000) (95,000)

GH Second St from Church to Brock Reline 42431068 (20,000) (85,000)

GH Violet to Kelly, Kelly to Hahne Easement R431069 (20,000) (80,000)

GH Repl MR 169 from Readman to End Phase431070 (125,000) (375,000)

HV Watermain Rehab 422.607431071 (2,000,000)

HV Lake Dr WM (235m) 422.705431073 (20,000) (260,000)

HV North End Servicing 422.623431076 (214,875)

HV West St Princess to Veterans Way (70m) &431083 (29,591)

HV George St from Henry to End (168m)431084 (20,000) (180,000)

HV Anthony Court431085 (20,000) (180,000)

GH Brock/First St Abandon Tower Piping431086 (25,000) (100,000)

BB Service Transfers Taylor Front to Woodwar431087 (40,000) (160,000)

GH Abandon Twin WM Winewood (Beach to F431088 (20,000) (80,000)

BB Bird Ln from Richard to End (150m)431089 (30,000) (130,000)

GH Fourth & Bishop (75m E & 100m S)431090 (40,000) (160,000)

HV Main St W from Centre St to Lorne WM (15431093 (15,000) (160,000)

BB Valley Drive431094 (122,000)

HV Main St E from Centre St to West St WM (1431095 (10,000) (105,000)

HV Main St E from West St to Bridge WM (200431096 (20,000) (175,000)

PC Armstrong St Extension431097 (129,000)

BB Taylor Rd Lateral Transfers Manitoba to Riv431098 (50,000)

BB Transfer Laterals on Beaumont to PVC & A431099 (35,000) (175,000)

DMM Air Relief Valves & Chambers (HV, BB &431100 (150,000)

GH Phillip at Railway Crossing431101 (120,000)

Repair Flood Damaged Watermain in HV431102 (150,000)

BB Kimberly St from Quebec to Ontario431103 (10,000) (60,000)

BB Ontario St from Church to Kimberly431104 (20,000) (65,000)

BB Robert St from James St to End431105 (10,000) (85,000)

BB Ida St from Manitoba to James431106 (76,000)

BB Woodward St from Front to Alice431107 (20,000) (200,000)

GH Lorne St Phase I (Louise St 280 metres S)431108 (75,000) (135,000)

GH Lorne St Phase II (280m S of Louise to Isla431109 (210,000)

HV South Dufferin (Lansdowne to Mary)431110 (85,000)

PC Medora to Pollution Control Plant431111 (150,000)

GH Repl MR 169 from Readman to End Phase431112 (500,000)

HV Valve Repl (Main St / Chaffey St)431113 (50,000)

2013

Commitments

Budget

2014

Forecast

2015

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2016

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2017

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2018

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2019

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2020

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2021

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2022

Forecast

2023

Forecast

Future Years



13

HV Decommission Highlands BPS/Hwy 60 BPS431114 (50,000)

DMM SCADA Upgrades 400.602432001 (46,056)

MT WTP Filter Modifications 424.696432016 (21,640)

BB WTP Expansion 420.659432019 (10,000,000)

GH WTP Expansion 421.659432020 (10,000,000)

HV WTP Expansion 422.659432021 (10,000,000)

DMM MOE Water System Inspections Future432025 (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (1,000,000)

PS WTP Rehabilitation432027 (453,249)

DMM Automatic Transfer Switch Upgrades 201432028 (133,921)

BALA WTP Modification Phase III432033 (50,000) (1,150,000)

DMM MOE Water System Inspections 2013432034 (74,976)

DMM Replace Programmable Logic Controllers432035 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (500,000)

DMM Replace Surge Protectors432036 (50,000)

HV WTP Chlorination / Soda Ash Pump Upgra432038 (50,000)

BB WTP Rehabilitation432039 (1,000,000) (1,000,000)

GH WTP Replace Generator432040 (300,000)

DMM MOE Water System Inspections 2014432041 (100,000)

HV Highland Dr Booster/Reservoir 422.619433002 (300,000)

BB Demolish Bird's Mill Reservoir 420.640434004 (70,000)

GH Repair/Paint Fairview Tower 421.605434005 (800,000) (200,000)

GH Repair/Paint Beach Road Tower 421.607434006 (800,000)

GH WTP Permit, Upgrade & Manual 421.733434007 (154,395)

BALA Repair/Paint Tower434009 (800,000) (800,000)

PC Repair/Paint Tower434010 (800,000) (800,000)

PS Water Tower434011 (750,000)

BAYS Water Tower434012 (750,000)

GH Beaver Creek Reservoir Coating/Pump/Co434014 (150,000) (150,000)

BB Paint Hamblin Tank Future434015 (350,000)

BB Ecclestone Dr Reservoir & Pumping Station434016 (500,000) (500,000)

MT Repair/Paint Tower434017 (800,000)

GH Clean Fairview Tower434018 (150,000) (150,000) (300,000)

GH Clean Beach Rd Tower434019 (150,000) (300,000)

PC Pressure Wash Tower434020 (50,000)

GH Beaver Creek Reservoir Generator Replac434021 (200,000)

DMM Water Quality Regulations Future439003 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (500,000)

DMM Water Quality Regulations 2013439006 (100,000)

2013

Commitments

Budget

2014

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2015

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2016

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2017

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2018

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2021

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2022

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2023

Forecast

Future Years



14

DMM Water Quality Regulations 2014439007 (50,000)

Post-Closing Project Costs - Water439900 (14,666)

Total Capital Project Commitments (2,345,407) (2,031,000) (1,630,000) (1,264,000) (2,057,500) (1,945,375) (753,000) (1,402,000) (761,750) (2,470,250) (3,835,000) (43,470,000)

Total Capital Project Commitments (2,345,407) (2,031,000) (1,630,000) (1,264,000) (2,057,500) (1,945,375) (753,000) (1,402,000) (761,750) (2,470,250) (3,835,000) (43,470,000)

Transfers Out


Total Transfers Out

Total Expenditures Against Reserve Fund 2,345,407 2,031,000 1,630,000 1,264,000 2,057,500 1,945,375 753,000 1,402,000 761,750 2,470,250 3,835,000 43,470,000

Transfers In

Contributions from Revenue Fund 1,150,000 2,600,000 2,600,000 3,100,000 3,100,000 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 38,300,000


Closing Balance Before Interest 2,679,918 3,270,057 4,303,532 6,217,870 7,363,344 8,766,509 11,390,038 13,398,199 16,109,054 17,160,068 16,911,180 12,153,516

Interest Income 21,139 63,475 78,338 102,974 148,540 176,529 210,161 272,605 321,264 386,112 412,335 407,103

Closing Balance 2,701,057 3,333,532 4,381,870 6,320,844 7,511,884 8,943,038 11,600,199 13,670,804 16,430,318 17,546,180 17,323,515 12,560,619

2013

Commitments

Budget

2014

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2015

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2016

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2017

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Future Years



15

Opening Balance 837,414 318,371 664,853 1,022,867 1,392,718 1,774,719 951,565 1,330,219 1,721,334 2,108,989 2,451,888 2,880,267



BB Taylor Rd Watermain (Toronto to Pine) 420431015 (16,250) (73,750)

HV Earl's Rd Connect to Hanes Reservoir 422431075 (755,922)

HV North End Servicing 422.623431076 (1,217,625)

HV WTP Phase III 422.707432012 (640,000) (1,280,000) (480,000)

HV WTP Phase II HVAC System & Misc. Reha432013 (326,986)

BB WTP Expansion 420.659432019 (10,000,000)

GH WTP Expansion 421.659432020 (10,000,000)

HV WTP Expansion 422.659432021 (10,000,000)

PS WTP Upgrade 423.697432022 (1,500,000) (2,000,000) (1,000,000)

HV Highland Dr Booster/Reservoir 422.619433002 (1,700,000)

PS Water Tower434011 (750,000)

BAYS Water Tower434012 (750,000)

Total Capital Project Commitments (1,082,908) (1,217,625) (1,500,000) (2,640,000) (2,296,250) (553,750) (33,200,000)

Total Capital Project Commitments (1,082,908) (1,217,625) (1,500,000) (2,640,000) (2,296,250) (553,750) (33,200,000)

Transfers Out


Total Transfers Out

Total Expenditures Against Reserve Fund 1,082,908 1,217,625 1,500,000 2,640,000 2,296,250 553,750 33,200,000

Transfers In

Contributions from Revenue Fund - Development Charges 563,865 339,000 342,390 345,814 349,272 352,765 356,292 359,855 363,454 367,088 370,759 3,707,590

DC Debt - Debt Reduction Reserve Fund 1,500,000 2,640,000 2,280,000 480,000

Total Transfers In 563,865 339,000 342,390 345,814 349,272 352,765 1,856,292 2,999,855 2,643,454 847,088 370,759 3,707,590

Closing Balance Before Interest 318,371 657,371 1,007,243 1,368,681 1,741,990 909,859 1,307,857 1,690,074 2,068,538 2,402,327 2,822,647 (26,612,143)

Interest Income 7,482 15,624 24,037 32,729 41,706 22,362 31,260 40,451 49,561 57,619 67,686

Closing Balance 318,371 664,853 1,022,867 1,392,718 1,774,719 951,565 1,330,219 1,721,334 2,108,989 2,451,888 2,880,266 (26,544,457)

2013

Commitments

Budget

2014

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2015

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Future Years

Water Development ChargesRun Date: 10/8/13 4:02 PM


16

Opening Balance 10,620,197 6,314,338 8,540,276 11,523,924 14,874,856 14,255,626 13,772,699 7,256,624 6,785,851 (435,351) 1,352,072 3,296,964



Runway Major Repairs Future360012 (2,000,000)

BB Lagoon Lane STP 410.759412001 (1,168,010)

PC STP Expansion 416.719412010 (3,950,000)

BB River Rd SPS Expansion 410.768413005 (1,680,000)

Total Capital Project Commitments (6,798,010) (2,000,000)

Total Capital Project Commitments (6,798,010) (2,000,000)

Transfers Out


Balloon Payments 3,600,000 4,999,000

DC Debt - Debt Reduction Reserve Fund (Wastewater) 2,352,049 1,850,000 5,400,000 4,800,000 5,275,000 1,500,000 3,105,000 1,500,000 2,000,000

DC Debt - Debt Reduction Reserve Fund (Water) 1,500,000 2,640,000 2,280,000 480,000

Total Transfers Out 2,352,049 1,850,000 5,400,000 4,800,000 10,375,000 4,140,000 10,384,000 1,980,000 2,000,000

Total Expenditures Against Reserve Fund 6,798,010 2,352,049 2,000,000 1,850,000 5,400,000 4,800,000 10,375,000 4,140,000 10,384,000 1,980,000 2,000,000

Transfers In

Contributions from Revenue Fund 2,070,579 3,958,658 3,958,658 3,958,658 3,200,000 2,400,000 1,600,000 800,000

Debt Repayments 274,621 470,942 824,294 971,461 1,231,211 1,582,066 1,935,267 2,698,696 3,003,331 3,767,423 3,913,118

Total Transfers In 2,345,200 4,429,600 4,782,952 4,930,119 4,431,211 3,982,066 3,535,267 3,498,696 3,003,331 3,767,423 3,913,118

Closing Balance Before Interest 6,167,387 8,391,889 11,323,228 14,604,043 13,906,067 13,437,692 6,932,966 6,615,320 (594,818) 1,352,072 3,265,190 3,296,964

Interest Income 146,951 148,387 200,696 270,812 349,559 335,007 323,658 170,531 159,467 31,774 77,479

Closing Balance 6,314,338 8,540,276 11,523,924 14,874,855 14,255,626 13,772,699 7,256,624 6,785,851 (435,351) 1,352,072 3,296,964 3,374,443

2013

Commitments

Budget

2014

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2015

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2022

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2023

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Future Years

Debt Reduction Reserve FundRun Date: 10/8/13 4:02 PM


17



Computer Equip Life Cycle Replacement 2013130326 (10,595)

MR 42 from Manitoba to Pine St 1.5 km300032 (100,000)

MR 3 from Lorne to Centre St300071 (20,000)

MR 2 at Iris St300072 (10,000)

MR 17 from Oakwood Dr to Brydons Bay Rd 2311043 (50,000) (50,000)

HV MR 44 from Mack's Rd to MR 10 2.8 km311045 (38,000)

MR 44 from Hwy 11 to Mack's Rd 1.2 km311150 (38,000)

MR 169 Rehab Moon River Bridge #169276313010 (10,000)

MR 118 Structural Repairs Indian River Bridge313013 (10,000)

MR 169 Rehab Moon River Bridge #169277313017 (10,000)

BB MR 15 Rehab Beaver Creek Bridge #01501313020 (39,000)

MR 10 Rehab Port Sydney Bridge #010041313025 (10,000)

MR 5 Port Severn Bridge East #005014313033 (75,000)

Major Structure Rehab Future313047 (100,000)

HV Hidden Valley 412.385411022 (750,000)

BB Trunk Main Sellens N 410.786411025 (225,000)


GH Crescent Dr from Kingswood Dr to Fairview411043 (60,000)

BB James St Sewer from Anne to Chub Downe411044 (50,000)

BB James St from Anne to MacDonald 410.32411049 (70,000)

GH Pinegrove from Kingswood to Pinedale411051 (120,000)

GH Pinedale from Pinegrove to Third St411053 (60,000)

HV Main St W Sewer Replacement (Centre to 411081 (20,000)

BB Liddard St from Creek to Aubrey St411094 (60,000)

BB Dill St from Church to Victoria St411095 (54,000)

BB Ontario St from Church to Kimberly St411096 (24,000)

HV Twin Hodges PS Forcemain 412.800413077 (250,000)

BB Richard from Taylor to Woodchester 420.70431019 (54,000) (226,000)

BB James from MacDonald to Ann 420.703431020 (22,500) (112,500)

BB 200m on Dawsonwood 420.704431021 (30,000)

BB Spencer from Andrea to Santa's Village Rd431024 (70,000) (280,000)

BB 128m on Spadina 420.708431025 (13,000) (52,000)

GH Old Muskoka from Muskoka Beach to MR 431031 (38,000) (152,000)

2013

Commitments

Budget

2014

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Future Years

Municipal ContributionRun Date: 10/8/13 4:02 PM


18

GH Walton from Muskoka Beach to Lofty Pines431039 (18,000) (72,000)

GH Bishop St from Third to Bethune 421.709431040 (10,000) (40,000)

GH Phillip St E from Fifth to Bethune 421.710431041 (22,000) (88,000)

GH Third St from Pinedale Rd to David St 421.431042 (11,000) (44,000)

GH Pinedale Rd from Third St to Bethune 421.431043 (15,000) (60,000)

GH Farquhar from John to Muskoka Rd 412.71431044 (15,000) (60,000)

GH Wagner from John to Mary 421.715431046 (135,000)

GH Kelly Dr from Hahne Easement North 421.431047 (20,000) (80,000)

GH Sharpe from First to Muskoka Rd 421.717431048 (30,000)

GH Musquash Rd "B" (Hydrant #250) to MR 16431050 (100,000)

HV Scott from King William to Meadow Park 42431055 (70,000)

HV Madeline St WM Replacement 422.709431058 (20,000)

HV Hidden Valley Area WM Replacement431059 (250,000)

BALA WM Replacement Weismiller Lumber 42431061 (25,000) (100,000)

HV Lake Dr WM (235m) 422.705431073 (90,000)

GH Brydon Bay Loop - Gravenhurst 421.627431074 (200,000)


HV Main St W from Centre St to Lorne WM (15431093 (20,000)

BB Valley Drive431094 (38,000)

HV Main St E from Centre St to West St WM (1431095 (25,000)

HV Main St E from West St to Bridge WM (200431096 (25,000)

PC Armstrong St Extension431097 (15,000)

BB Kimberly St from Quebec to Ontario431103 (30,000)

BB Ontario St from Church to Kimberly431104 (35,000)

BB Robert St from James St to End431105 (40,000)

BB Ida St from Manitoba to James431106 (24,000)

BB Woodward St from Front to Alice431107 (60,000)

GH Lorne St Phase I (Louise St 280 metres S)431108 (90,000)

GH Lorne St Phase II (280m S of Louise to Isla431109 (90,000)

HV South Dufferin (Lansdowne to Mary)431110 (25,000)

Air Photos Future Years810011 (10,000) (10,000) (20,000)

Air Photos 2013810023 (7,838)

Total Capital Project Commitments (393,433) (1,292,000) (409,000) (211,000) (571,500) (892,000) (372,000) (413,000) (207,000) (265,000) (520,000) (250,000)

Total Capital Project Commitments (393,433) (1,292,000) (409,000) (211,000) (571,500) (892,000) (372,000) (413,000) (207,000) (265,000) (520,000) (250,000)

Transfers Out

2013

Commitments

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2014

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19


Total Transfers Out

Total Expenditures Against Reserve Fund 393,433 1,292,000 409,000 211,000 571,500 892,000 372,000 413,000 207,000 265,000 520,000 250,000

Transfers In

Total Transfers In

Closing Balance Before Interest (393,433) (1,292,000) (409,000) (211,000) (571,500) (892,000) (372,000) (413,000) (207,000) (265,000) (520,000) (250,000)

Closing Balance (393,433) (1,292,000) (409,000) (211,000) (571,500) (892,000) (372,000) (413,000) (207,000) (265,000) (520,000) (250,000)

2013

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20



HV Hidden Valley 412.385411022 (1,134,400)

Total Capital Project Commitments (1,134,400)

Total Capital Project Commitments (1,134,400)

Transfers Out


Total Transfers Out

Total Expenditures Against Reserve Fund 1,134,400

Transfers In

Total Transfers In

Closing Balance Before Interest (1,134,400)

Closing Balance (1,134,400)

2013

Commitments

Budget

2014

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Future Years

Prepaid Special ChargesRun Date: 10/8/13 4:02 PM


21

WATER AND WASTEWATER USER FEES

User Fees Current 2013 Rate Proposed 2014 Rate $ DifferenceWATER RATES:Installed Water Meter (monthly basic service charge): - Less than 1" meter $18.70 $18.70 $0.00 - 1" meter $29.07 $29.07 $0.00 - 1.5" meter $53.27 $53.27 $0.00 - 2" meter $70.56 $70.56 $0.00 - 3" meter $224.56 $224.56 $0.00 - 4" meter or larger $287.42 $287.42 $0.00 - Consumption/m3 $1.6844 $1.7093 $0.0249

No Water Meter Installed (monthly service charge): - Residential and Light Commercial Users $86.08 $87.07 $0.99 - Other Non-metered Users - Cost per Equivalent Residential Unit (ERU). Number of ERU as determined by Public Works. $86.08/ERU $87.07/ERU $0.99

Misc.:Connection Fee: - Service Connection $1,070 or Actual Cost $1,070 or Actual Cost $0.00 - Temporary Service - Low Users . First Two Weeks (minimum charge) $52.00 $52.00 $0.00 . Per Week Thereafter $32.00 $32.00 $0.00Service Charge Turning Water On or Off: - During Working Hours $38.00 $38.00 $0.00 - During Off Hours $175.00 $175.00 $0.00 - Seasonal Turn-ons/Turn-offs $32.00 $32.00 $0.00 - Disconnection Notice Charge $30.00 $30.00 $0.00Meter Installation: - 5/8" Diameter Installed by District $265.00 $295.00 $30.00 - 5/8" Diameter Installed by Others $165.00 $195.00 $30.00 - Other Meter Sizes Installed by District $265.00 or Actual Cost $295.00 or Actual Cost $30.00 Hydrant Maintenance: - Private Hydrant (Post firefighting event) Actual Cost Actual Cost $0.00 - Municipal Hydrant (Annual) $42.00 $42.00 $0.00 - Additional Hydrant Installation Greater of $4,000.00 or Actual Cost Greater of $4,000.00 or Actual Cost $0.00 - Connection Fee Actual Cost Actual Cost $0.00

$70.00/day + $1.6844/m3 $70.00/day + $1.7093/m3 $0.0249/m3

$500.00/season (3 months) + $1.6844/m3 $500.00/season (3 months) + $1.7093/m3 $0.0249/m3$1,000 for 9 months + $1.6844/m3 $1,000 for 9 months + $1.7093/m3 $0.0249/m3

$1,250/year + $1.6844/m3 $1,250/year + $1.7093/m3 $0.0249/m3Other Related Fees: - 5/8" Meter Inspections $50.00 $75.00 $25.00 - Other Meter Inspections Actual Cost Actual Cost $0.00 - Application for Permit to Connect $50.00 per service to a maximum of $50.00 $50.00 per service to a maximum of $50.00 $0.00 - Water Permit Amendments . Administrative Processing $200.00 $300.00 $100.00 . Watermains and Appurtenances, including Hydrants $1,000.00 $1,500.00 $500.00 . Highlift and Booster Stations, Reservoirs or Elevated Tanks $2,000.00 $2,500.00 $500.00

- Non-Firefighting Use (each hydrant)

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WATER AND WASTEWATER USER FEES

User Fees Current 2013 Rate Proposed 2014 Rate $ DifferenceWASTEWATER RATES:Water Meter Size (monthly basic service charge): - Less than 1" meter $4.30 $4.30 $0.00 - 1" meter $8.42 $8.42 $0.00 - 1.5" meter $16.72 $16.72 $0.00 - 2" meter $22.66 $22.66 $0.00 - 3" meter $75.52 $75.52 $0.00 - 4" meter or larger $97.10 $97.10 $0.00 - Consumption/m3 $2.4149 $2.4584 $0.0435

Non-Metered (fixed monthly rates): - Residential and Light Commercial Users $100.90 $102.64 $1.74 - Other Non-metered Users - Cost per Equivalent Residential Unit (ERU). Number of ERU as determined by Public Works. $100.90/ERU $102.64/ERU $1.74

Misc:Connection Fee: - Service Connection Any Size Actual Cost Actual Cost $0.00 Other Related Fees: - Sewer Dye Test $72.00 $72.00 $0.00 - Seasonal Turn-ons/Turn-offs $32.00 $32.00 $0.00 - Application for Permit to Connect $50.00 per service to a maximum of $50.00 $50.00 per service to a maximum of $50.00 $0.00 - Environmental Compliance Approvals Fees set by the Ministry of the Environment (MOE) Fees set by the Ministry of the Environment (MOE) $0.00 - Clearing a blocked private sewer when a clean out is accessible and available either inside or outside the building

. During Working Hours $97.00/hour $97.00/hour $0.00 Aft H $175 00/h ( i i 3 h ll t) $175 00/h ( i i 3 h ll t) $0 00 . After Hours $175.00/hour (minimum 3 hour callout) $175.00/hour (minimum 3 hour callout) $0.00

. Sundays & Statutory Holidays $250.00/hour (minimum 3 hour callout) $250.00/hour (minimum 3 hour callout) $0.00 - Disposal of sand and grit removed from sanitary sewers $300.00 per load $400.00/m³ (minimum charge) $100.00

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THE DISTRICT MUNICIPALITY OF MUSKOKAFULL TIME EQUIVALENT (FTE) 2014 BUDGET

2014 2014 FTE 2012 FTE 2013 FTE 2014 Service Budget Budget Budget Annualized Level Change Request Full Time Other Total FTE

Water/Wastewater - North Muskoka 15.00 15.00 15.00 15.00 15.00Water/Wastewater - Central Muskoka 15.00 15.00 15.00 15.00 15.00Water/Wastewater - South Muskoka 15.00 15.00 15.00 15.00 15.00Total - Water & Wastewater 45.00 45.00 0.00 0.00 45.00 45.00 0.00 45.00

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Municipal Study 2011

Water/Wastewater Costs as a Percentage of Household Income

Water/Wastewater

Municipality 2011 Est. Avg.

Household Income

2011 Est. Avg.

Household Income

2011 Residential Water/WW

Costs

2011 Water/WW as a % of Household

Income

2011 W/WW Burden Ranking

Caledon high $ 130,209 355$ 0.3% lowMississauga high $ 100,306 355$ 0.4% lowBrampton mid $ 93,961 355$ 0.4% lowKing high $ 184,519 772$ 0.4% lowAurora high $ 143,434 640$ 0.4% lowWhitchurch-Stouffville high $ 136,128 625$ 0.5% lowVaughan high $ 123,061 602$ 0.5% lowOakville high $ 143,814 709$ 0.5% lowGrimsby high $ 98,424 498$ 0.5% lowMarkham high $ 113,067 604$ 0.5% lowRichmond Hill high $ 111,713 612$ 0.5% lowHalton Hills high $ 117,510 709$ 0.6% lowKingsville mid $ 84,583 527$ 0.6% lowEast Gwillimbury high $ 121,748 775$ 0.6% lowMilton high $ 111,187 709$ 0.6% lowToronto mid $ 89,151 571$ 0.6% lowBurlington high $ 108,632 709$ 0.7% lowPickering high $ 106,981 701$ 0.7% lowWhitby high $ 106,288 701$ 0.7% lowTecumseh high $ 109,678 752$ 0.7% lowAjax high $ 101,867 701$ 0.7% lowNewmarket high $ 111,630 801$ 0.7% lowClarington high $ 96,994 701$ 0.7% lowOttawa high $ 94,649 748$ 0.8% lowPelham high $ 106,213 804$ 0.8% lowPeterborough low $ 64,882 500$ 0.8% lowWaterloo high $ 100,236 802$ 0.8% lowHamilton mid $ 77,221 622$ 0.8% lowGeorgina mid $ 83,288 674$ 0.8% lowNorth Dumfries high $ 100,815 826$ 0.8% lowTimmins mid $ 73,775 638$ 0.9% midOshawa mid $ 80,476 701$ 0.9% midBrockville low $ 67,441 589$ 0.9% midWoolwich high $ 124,989 1,110$ 0.9% midLeamington mid $ 79,841 741$ 0.9% midWilmot high $ 94,222 879$ 0.9% midGuelph mid $ 84,666 794$ 0.9% midBarrie mid $ 80,235 761$ 0.9% midCambridge mid $ 85,014 845$ 1.0% midFort Frances mid $ 80,487 801$ 1.0% midStratford low $ 72,115 719$ 1.0% midQuinte West low $ 62,574 627$ 1.0% midLondon mid $ 76,546 771$ 1.0% mid

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Municipal Study 2011

Water/Wastewater Costs as a Percentage of Household Income (cont’d)

Water/Wastewater

Municipality 2011 Est. Avg.

Household Income

2011 Est. Avg.

Household Income

2011 Residential Water/WW

Costs

2011 Water/WW as a % of Household

Income

2011 W/WW Burden Ranking

Sault Ste. Marie low $ 67,384 681$ 1.0% midCornwall low $ 58,314 592$ 1.0% midKitchener mid $ 79,920 825$ 1.0% midNiagara-on-the-Lake high $ 96,503 999$ 1.0% midOrangeville mid $ 84,786 879$ 1.0% midMiddlesex Centre high $ 114,584 1,205$ 1.1% midWellesley mid $ 77,182 826$ 1.1% midLincoln mid $ 86,696 988$ 1.1% midInnisfil mid $ 84,764 972$ 1.1% midSarnia mid $ 79,768 919$ 1.2% midChatham-Kent low $ 67,403 780$ 1.2% midSt. Thomas low $ 69,388 804$ 1.2% midThorold mid $ 74,892 872$ 1.2% midSt. Marys low $ 65,362 766$ 1.2% midWest Lincoln mid $ 84,963 999$ 1.2% midTillsonburg low $ 69,350 831$ 1.2% midKingston mid $ 74,264 894$ 1.2% midKenora mid $ 75,768 919$ 1.2% midNorth Bay low $ 66,221 807$ 1.2% midBrantford low $ 70,911 892$ 1.3% highCentral Elgin mid $ 92,727 1,168$ 1.3% highSt. Catharines low $ 68,364 879$ 1.3% highThunder Bay low $ 68,155 879$ 1.3% highGreater Sudbury mid $ 74,691 972$ 1.3% highThe Blue Mountains low $ 66,512 897$ 1.3% highNiagara Falls low $ 67,760 985$ 1.5% highBelleville low $ 66,001 964$ 1.5% highPenetanguishene low $ 62,777 943$ 1.5% highBracebridge mid $ 78,692 1,196$ 1.5% highWindsor low $ 68,121 1,102$ 1.6% highKawartha Lakes low $ 71,757 1,180$ 1.6% highHuntsville mid $ 72,314 1,196$ 1.7% highPort Colborne low $ 64,973 1,082$ 1.7% highWelland low $ 63,910 1,066$ 1.7% highMeaford low $ 67,453 1,213$ 1.8% highLambton Shores low $ 65,946 1,226$ 1.9% highPrince Edward County mid $ 73,290 1,395$ 1.9% highFort Erie low $ 63,090 1,257$ 2.0% highGravenhurst low $ 59,913 1,196$ 2.0% high

Average 87,280$ 825$ 1.0%Median 80,078$ 802$ 1.0%Minimum 58,314$ 355$ 0.3%Maximum 184,519$ 1,395$ 2.0%

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