2018-2022 Financial Plan

FINANCIAL PLAN OVERVIEW

Operating Impact of Significant Capital Projects Budgeting for operating costs for each project is not our general practice. We set aside additional funds each year for divisions to manage increased operating expenses related to additional capital assets (Table on Page 41), The increases are not directly connected to actual capital each year. For example the Fire Department receives an additional $50,000 a year from growth to replace additional assets over time. This figure does not change based on the different additional equipment added or the timing of those additions. We also receive significant developer contributed assets which will require maintenance and replacement in the long-term; the operating costs related to these are also covered by the growth funds. The 2018 and 2019 budget years have significant investments in new Parks and Recreation Facilities (PRF). The projects are in the capital listing on Page 218 and tagged with ++. High level estimates for the operating costs related to the new facilities have been included in PRC Administration (Page 122) and Fiscal Services Debt (Page 108). As these facilities near completion they will have detailed budgets in new cost centres.

A Discussion of Some of the Key Funding Sources Follows:

General Revenue This represents funding contributed by general tax levies. Capital Works Reserve This reserve, established by bylaw is designed to assist with the funding of Capital Projects that cannot be funded through development revenues. Some key projects with funding from the Capital Works Reserve include the Karina Leblanc Synthetic Field and the upcoming Leisure Centre renovation. development community for specific capital works required as a result of development. The types of projects for which fees can be levied are determined by provincial legislation and the funds can only be expended for those projects. DCC funding has been a key source of funding for improvements along Abernethy Road. Development Cost Charges These are revenues collected from the

Drainage Levy Funding for storm related works not resulting from development can be funded from this source. Equipment Replacement Reserve The replacement of existing equipment is funded through this reserve, contributions to which are made annually. Infrastructure Replacement The annual funding set aside in our Financial Plan is being used to fund capital projects (in addition to regular maintenance and renewal). reserves. These reserves serve to stabilize taxes, fees and charges by providing funds during tight years and receiving those funds back during better years. Reserves shield our customers and taxpayers from sharp rate increases. A list of all of our reserves follows and the main ones are discussed below. Reserves The City also has financial resources held in

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