OPINIÓN DE APLICABILIDAD:

Community Housing Pines Port Carling Locks

Hauled Sewage Community and Planning Services Airport

Fleet General Administration Paramedic Services

Roads

Over the 10-year capital forecast period, the Roads component of the capital budget accounts for $200.5 million of the $246.7 million in planned capital expenditures, or 81.3% (83.7% in 2019) of the total 10-year capital expenditures. Fleet and General

Administration represent the next two largest components of the 10-year capital forecast with a total of 9.9% of the capital

expenditures. Under General Administration, regular updates to the core IT infrastructure have been included to ensure effective delivery of services.

In 2021, The Pines has five significant projects for a sloped-roof shingle replacement, kitchen improvements in the resident home areas, upgrades to the emergency generator, replacement of the resident bus and a new operations system.

In 2022-2023, the Muskoka Airport has a major repair to the apron scheduled which is consistent with prior year forecasts and in line with the updated asset management plan. In 2023-2024 repairs to the taxiway and road are scheduled with a project cost of

$662,400 over the two years. These project costs have been moved to earlier in the forecast compared to prior years based on the asset condition.

One project for Paramedic Stations in West Muskoka has been included with a preliminary cost estimate of $2.6 million in 2022 and $1.9 million in 2024.

The following table summarizes the forecasted expenditures for major projects scheduled over the 10-year period. Detailed project budgets for Roads Capital are not included as a pilot project is in progress to assess if more competitive tender results will be achieved.

Roads and Bridges 2020 2021-2024 2025-2029 10-Year Total

Project Expenditures $12,417,804 $77,759,800 $83,537,700 $173,715,304

Other Services

130355/130314 Computer Equip Life Cycle Replacement $96,500 $464,900 $622,000 $1,183,400

130356/130315 Core IT Infrastructure Management $370,000 $1,513,000 $1,527,800 $3,410,800

130825/130809 Regular Fleet Acquisitions $454,600 $2,271,200 $3,568,500 $6,294,300

130826/130812 Heavy Fleet Acquisitions $858,400 $2,970,100 $741,600 $4,570,100

530035 West Paramedic Stations $4,571,500 $4,571,500

530033/530009 Ambulance Vehicles $396,400 $1,666,300 $2,277,400 $4,340,100

360026 Apron Major Repairs (Sealing & Repaving) 1,503,600 $1,503,600

Project Expenditures $2,175,900 $14,960,600 $8,737,300 $25,873,800

Summary

Total Major Projects > $1 million $14,593,704 $92,720,400 $92,275,000 $199,589,104

% of Total Capital Program 50.2% 83.5% 86.6% 80.9%

Other Projects $14,493,500 $18,313,100 $14,323,900 $47,130,500 Total Capital Expenditures $29,087,204 $111,033,500 $106,598,900 $246,719,604

Capital Financing

The Tax Supported Capital Budget and Forecast is heavily reliant on its own Reserves and Reserve Funds to finance its capital projects. As shown in the

accompanying graph, financing from Capital Reserves represents 96.5% of the 2020 Capital Budget (96.0% in 2019), while Development Charges account for 3.1% and Grants 0.4%.

In general, reserve financing for capital projects is withdrawn from reserves that have been established for that particular service and have been accumulated from contributions from the operating budget. The Development Charges (DC) used to finance capital projects reflects the information contained within the DC Background Study completed in May 2014 and the reduction in approved DC rates. This information will be updated once the new DC by-law is

approved which is scheduled for December 2019.

The accompanying table shows the financing on joint projects between the District and the Area Municipalities for the Tax Supported Capital Budget and Forecast. In 2020, there are no projects with a Municipal Contribution.

The District is in a shared service arrangement for IT Services with Bracebridge and

Gravenhurst. The table shows the estimated allocation to the Towns for the forecasted core infrastructure renewal program based on the current allocation methodology.

The Municipal Contribution to Roads capital projects will be reflected at the time of contract award and may result in a budget amendment.

Year

ITS Core

Infrastructure Air Photos

2021 $75,400 $0 2022 $7,250 $0 2023 $68,440 $0 2024 $287,680 $14,600 2026 $31,900 $0 2028 $79,750 $0 2029 $331,412 $0 Total $881,832 $14,600

Joint Project Funding with Area Municipalities

From 2020 to 2029, the District’s financing plan is reflective of its ongoing reliance on its own funds as the most significant source of funding at 96.5% (96.2% in 2019). Reserve funding accounts for $238.0 million of the total $246.7 million in financing required over the 10-year period.

The second largest source of funding throughout the 10-year period is Development Charges at 3.1% (3.7% in 2019). The total over the 10-year period is $7.6 million ($0.5 million for Hauled Sewage and $7.1 million for Roads) compared to $8.3 million in the

previous year’s forecast. It should be noted that the allocation of DCs to projects has remained consistent with prior years and will be updated based on the 2019 DC Background Study, once Council approves the rates for DCs for the next five years.

External Funding from Area

Municipalities represents only 0.4% of capital financing over the 10-year forecast (0.1% in 2019) which is a result of including the external funding requirements from its shared services partners for core IT Infrastructure. There is no requirement for external debenture issues over the forecast period.

Reserves and Reserve Funds

Reserves and Reserve Funds play a critical role in a municipality’s long-term financing plan. A series of schedules have been prepared showing the status of the District’s various Reserves and Reserve Funds along with the individual commitments stemming from the 2020 Draft Capital Budget and Forecast. Also included are the projected annual Reserve contributions for 2020 (based upon scheduled Reserve contributions contained within the Treasurer’s Report). These schedules are attached to this report in the Sources of Financing section.

The following chart shows the projected Reserve Fund balances into the future, if capital projects and Reserve contributions continue at the levels projected within these budgets. It should be noted that these figures do not include the balance in the Debt Reduction Reserve which is highlighted in the Debt and Debt Capacity section.

There is a significant increase in uncommitted reserves between 2024 and 2029. This is due to a larger concentration of capital requirements in the first five years of the 10-year forecast period. As part of the ongoing

improvements of the Asset Management Plan, staff will be refining capital

forecasts to align with condition ratings and ongoing preventative maintenance. $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2020 2021 2024 2029