The Regional Municipality of Peel Water Systems Financial Plan ( ) Number A

Transcription

1 The Regional Municipality of Peel Water Systems Financial Plan ( ) Number A As Per Ontario Regulation 453/07 Under the Safe Drinking Water Act, 2002 Prepared by: Public Works Finance Support Unit and Water Division Date: Mar 10, 2014 FINANCIAL PLAN NUMBER A

2 Page 1 Table of Contents 1. Executive Summary Purpose and Regulatory Requirement Overview Region of Peel Financial Process Operating Financial Plan Full operating cost recovery approach: Customer Base Water rate: Capital Financial Plan Water Infrastructure Management Sustainability Methodology Water Capital Master Plan updates: Annual short term and long term Capital Plan development and updates Reserve Management SOGR Reserve Development Charge Reserve Corporate Asset Management Appendix I Projected Statement of Financial Positions Appendix II Projected Statement of Financial Activities Appendix III Projected Statement of Changes in Financial Position Appendix IV Ten Year Capital Plan... 18

3 Page 2 1. Executive Summary The contents of this document describe the six (6) year Financial Plan to sustain municipal drinking water systems in the Regional Municipality of Peel (hereafter referred to as Peel ). The Financial Plan utilizes guidelines of the Public Sector Accounting Board s accounting standards PSAB 3150 for tangible capital assets in preparing this document required by Ontario Regulation 453/07 under the Safe Drinking Water Act, The Financial Plan outlines the processes and practices in place within Peel that ensure the financial sustainability of the drinking water systems. It documents current financial commitments and funding sources for the current 2014 budget year and projections for the subsequent five (5) years including both capital outlays and operational expenditures. It also documents the water infrastructure 10 Year Capital Plan. The Financial Plan is not an accounting summary nor does it describe water program specifics such as service levels, program processes, service delivery, etc. It is focused on the means by which Peel assures financial sustainability of the physical assets and a high level summary of financial projections and position. Some areas of the Financial Plan are developed in conjunction with wastewater when it comes to the business sustainability as Peel s management is taking an integrated approach to conduct water and wastewater business. Some financial information required by the Regulation is consolidated on a municipal level across numerous departments and it is difficult for that information to be allocated to the drinking water system. The financial information that Peel is able to provide as part of the Financial Plan is as follows: Complete projected statement of financial activities; Tangible capital assets and changes in tangible capital assets in the projected statement of financial position; Level of details related directly to the replacement of lead service pipes. More information on projected statements of financial position can be found in Appendices I, II and III. As supplementary documents, Water Program Year Capital Plan in high level and details are attached in Appendix IV. The financial information that Peel is unable to provide due to the unavailability of information breakdown in the current financial system is as follows: Projected statement of changes in financial position;

4 Page 3 Financial assets, liabilities and non-financial assets except tangible capital assets. 2. Purpose and Regulatory Requirement Overview Peel's Water Systems Financial Plan ( ) Number A has been prepared by staff to meet the requirements of Ontario Regulation 453/07 (Financial Plans) under the Safe Drinking Water Act, 2002 (SDWA). The Financial Plan provided herein includes a projection over six (6) years, from 2014 to 2019, and conveys an overview of the processes in place to ensure reliability and long term financial sustainability of the physical assets that comprise Peel s five (5) drinking water systems that supply water to the Cities of Brampton, Mississauga and Town of Caledon: South Peel; Palgrave-Caledon East; Caledon Village-Alton; Inglewood and Cheltenham. The Financial Plan documents the current financial commitments and available funding sources over the set planning horizon including both capital outlays and operational expenditures. An overview of the expected financial funding for new infrastructure as well as existing infrastructure maintenance is provided together with the water infrastructure 10 Year Capital Plan. The Financial Plan represents a projection of financial position including tangible capital assets and changes in tangible capital assets; financial operations; and cash flows. The intent of this Ontario Regulation 453/07 is to ensure public transparency and the long term planning for sustainability of the municipal drinking water systems. Regional Council approved the first submission of the Financial Plan ( ) Number A on June 3, 2010 (under Council Resolution ) as part of satisfying the five (5) components under the new Municipal Drinking Water Licensing Program (MDWLP). An updated Financial Plan must be prepared prior to applying for renewal of the Municipal Drinking Water Licences (every five (5) years). This update to the Financial Plan has been prepared by staff as a condition of the application for Licence renewal. The Plan must be approved by Council and its copy, along with Council resolution, submitted to the Ministry of Municipal Affairs and Housing (MMAH). In addition, the Financial Plan must be made available, on request, to members of the public who are served by the drinking water systems without charge and available through publication on the Municipality s website. A notice advising members of the public served by the drinking water systems of the availability of the Financial Plan must also be provided. 3. Region of Peel Financial Process In order to ensure the business sustainability, Peel has put a lot of financial procedures and business practices in place. Peel conducts an annual review and potential adjustment of the

5 Page 4 capital and operating budget. The process in place includes input and expertise from the finance department, drinking water system operations and capital works/design and final approval by the Peel s Council members and Regional Chair. The budget framework requires a budget plan and identifies and allocates funds for: operations and maintenance projections for one (1) year and term of Council (normally four (4) years); major capital design and construction projections for one (1), five (5) and ten (10) years forward which identifies infrastructure needs o to meet growth demands (new infrastructure and expansions) o major maintenance on treatment facility, transmission and storage systems; capital design and construction projection for one (1) year and ten (10) years forward for repair and replacement of the existing distribution system; consideration and implementation of advancing technologies, continuous improvement and risk management approaches in support of the drinking water infrastructure emergency situations for specific infrastructure events related to service disruption The budget and financial process identify funding sources, reserve sustainability and cash flow projections. Peel also implements a series of financial procedures and policies to guide staff as to funding control, such as financial control by-law, purchasing by-law, reserve management policy as well as debt financing policy. 4. Operating Financial Plan 4.1 Full operating cost recovery approach: The Water and Wastewater Divisions deliver high quality drinking water and effluent treatment to protect the environment while planning for growth and ensuring the sustainability of Peel s infrastructure. The operating side is primarily guided by the full cost recovery principle and recovered from the water billings by consumptions from residential and Industrial & Institutional (I&I) sectors as well as user fees by services. Peel determines the water rate each year based on the total annual projected operating cost and the estimated flow, which allows Peel in a good position to implement full cost recovery. Peel also builds in an amount into water rate stabilization reserve each year as a buffer to offset any revenue fluctuations in case of any departure between the estimated and actual consumptions. Chart 1 and Table 1 below illustrate how Peel s management developed a balanced budget for 2014 and a longer timeframe.

6 Page 5 Chart 1: 2014 Peel s Water Operating Budget Note: Debt cost refers to the allocation from corporate development charge borrowing cost, which is offset by the revenue collection from the developers over time. Table 1: Projected Water operating budget for period of 2014 to 2019 Operating Forecasting/Budget in 000s Peel Water Expenditure 246, , , , , ,709 Peel Water Revenue (246,709) (261,709) (276,709) (292,709) (310,709) (330,709) Net Water Cost $0 $0 $0 $0 $0 $0 4.2 Customer Base: Peel s customer base is increasing year over year, as illustrated in Chart 2 below, which brings scale of economic to the operations as the water business is highly capital intensive. Chart 2: Increase of service accounts over time # of Accounts 350, , , , , ,000 50, Year

7 Page Water rate: As part of 2014 budget development, for the period , Peel Utility Rate programs are looking at an average combined annual rate increase of 5 per cent, illustrated in Table 2. The key assumptions include: the water and wastewater capital stabilization reserve contributions, energy prices, water consumption, and operating costs in water and wastewater programs. Table 2: Forecasted Utility Rate Forecasted Utility Rate Impact Budget Forecast Operating Operations 0.0% 1.0% 1.0% 1.0% Captial Infrastructure 7.00% 6.0% 3.0% 3.0% Total Utility Rate Impact 7.00% 7.0% 4.0% 4.0% Household Bill with annual consumption of 310 M^3 $540 $576 $598 $618 Small Business with annual consumption of 730 m^3 $1,354 $1,446 $1,501 $1,550 Peel has been able to provide water service to Peel s residence and Industrial & Institutional (I&I) sectors at the lowest rate across GTA and neighbouring municipalities. The management of capital reserve, which forms significant part of the operating expenditure, has been very effective to address the future replacement and rehabilitation of the infrastructure. In addition, Peel s management is promoting a culture of improving the operating efficiency by looking at the alternative options of service delivery. Those practices will allow Peel to continue to stay in a good shape with regards to delivering water services with low costs and hence sustain the business. Chart 3 below illustrates the latest water billing comparison among GTA and neighbouring municipalities. Chart 3: 2013 Water Billing comparison

8 Page Peel Combined Annual Water&Wastewater Utility Bill (An average household in Peel uses approximately 310 cubic metres of water per year) $891 $951 $885 $839 $857 $890 $ per year $501 0 Halton Durham Markham Toronto Vaughan Peel Richmond Hill 5. Capital Financial Plan 1. Peel s water system comprises of: Lake based, South Peel Drinking Water System that provides water supply for the City of Brampton, the City of Mississauga, and parts of South Caledon including the Town of Bolton, and a contractual arrangement to supply drinking water to York Region: two (2) surface water treatment plants (WTP); Lakeview WTP in the central-east system and Lorne Park WTP in the west system. distribution system that carries water from the treatment plants through approximately 4,245 km of pipes that range in size up to 2100 mm in diameter. pumping stations and storage facilities:15 pumping stations, 19 water storage facilities 2. North Peel Drinking Water Systems that provide groundwater supply for the communities in Town of Caledon including, Cheltenham, Inglewood, Caledon Village, Alton, Caledon East and Palgrave: four (4) groundwater Drinking Water Systems: Palgrave Caledon East, Caledon Village Alton, Inglewood and Cheltenham that include 14 active production wells, and distribution systems including two (2) booster pumping stations and seven (7) water storage facilities.

9 Page Water Infrastructure Management Sustainability Methodology Water Capital Master Plan updates: The Water and Wastewater Master Plan for the water system are being updated every five (5) years, in line with Peel s Official Plan (currently with a horizon of 2031), to address the areas of: 1. Meeting the servicing needs of identified growth in Peel 2. Protecting the public and the environment from the impacts of potentially high wet weather flows 3. Level of service and design basis review 4. Optimization of existing and future water storage 5. Recognition of growth beyond places to grow 6. Potential intensification impacts The latest Water and Wastewater Master Plan updates are being completed in early The study focuses on Peel s lake based system to support growth to 2031 and to consider longer term servicing needs beyond 2031 as identified by Amendment 2 (2013) of the Places to Grow Growth Plan for Greater Golden Horseshoe, Annual short term and long term Capital Plan development and updates Guided by the Master Plan, the water program reviews and updates short term (one (1) year) and long term Capital Plan (ten (10) year) in the annual budget development, which identifies existing infrastructure major repair and replacements for distribution systems based on projected life cycles, history of performance and economic and social opportunities. The plan development also considers the funding source, reserve sustainability and term of Council priorities. The 2014 water Capital Plan can be found in Appendix IV. Chart 4, below provides a snapshot of water long term financial plan and its funding sources. Chart 4: Total 10 year Capital plan and funding source

10 Page Reserve Management Peel currently manages two (2) primary reserves in water business: the State of Good Repair (SOGR) reserve and the Development Charge Reserve. The contribution level is being evaluated on an annual basis to reflect the updated Capital Plan and the projected capital works spending. For any joint capital projects with other municipalities, the cost share is determined and agreed upon by both parties. In addition, a joint reserve is set up to address infrastructure repairs and replacements in the future and the reserve contribution is part of the annual operating budget and recovered through the wholesale rate SOGR Reserve SOGR reserve is for future repairs and replacements on the existing infrastructure, which is sourced from contributions through the annual operating budget and recovered through water retail rate. The types of capital projects supported by these reserves include replacement of vehicles, replacement of linear assets, pipes, feeder mains and facilities. Capital Reserves not only provide the resources to advance Peel s capital plan, but also provide financial flexibility to meet long term financing requirements and help achieve the long term financial sustainability of its infrastructure. In 2009, Regional Council adopted the strategy to increase the Utility Rate supported reserves by a 3 per cent utility rate each year to support the non-development Charges capital plan. In an effort to close the Utility Rate supported capital financing gap more quickly, in 2012 and 2013 Regional Council approved 6 per cent Utility Rate increase. The increase in the capital reserves are also an important factor in Peel s overall liquidity and financial condition which supports Peel s Triple A (AAA) credit rating. The 2014 Utility Rate Supported Budget increase provides the balance to maintain capital infrastructure in a state of good repair, address service level requirements while minimizing the impact to Peel s ratepayer. The management long term vision on the capital reserve contribution is outlined in Chart 5 below: Chart 5: 2014 Budget Decision on SOGR reserve contribution

11 Page Development Charge Reserve Guided by the Regional Council s growth pays for growth philosophy, the new infrastructure is financed from Development Charges (DC), which is currently reviewed on a regular basis. The new infrastructure is identified through development of the Master Plan that includes development of new or expansion of existing treatment facilities, transmission and storage facilities and follows the Region Official Plan. As of August 31, 2013 $1.27 billion debt will be outstanding for growth related water and wastewater infrastructure funded entirely through future development charge revenue. Based on the 2012 development charge background study it is anticipated debt will continue to be issued to a maximum of $2.6 billion. Based on 2014 development charge related expenditures and revenues, $190 million of debt issuance is planned for The DC fund borrowing is being addressed in the regular DC by-law updates and well informed in the developer community. The funding gap will be closed by the incoming DC revenues and DC rates. 5.3 Corporate Asset Management Although Capital Plan has proven itself adequate in the past, much longer range modeling is required to assess the more complex long-term challenges ahead and to mitigate against sudden and significant rate increase and/or major debt financing.

12 Page 11 Peel s management recognizes that the key to improving infrastructure and reserve planning is more robust asset management. In 2008 Peel initiated Corporate Asset Management (CAM) approach, the objective of which is to develop strategies to: standardize asset management practices across the organization; assess the current and future state of Peel s asset and reserves; prioritize infrastructure needs across the organization; perform optimized infrastructure and financial planning; maximize the performance of Peel s assets to meet required levels of services at the lowest overall costs. The framework has been well developed and major components have been identified such as service level, infrastructure risk profiles, asset components, corporate standard for asset management and required funding for sustainability. The implementation of this approach rolled out across the organization in Recognizing the combined impacts of expansion and aging of the water infrastructure and maintenance and construction costs, Peel focuses on incorporating both asset management best practices and long term planning. This allows Peel to sustain its drinking water infrastructure while minimizing exposure to financing risks and will continue to position Peel in ensuring long term sustainability of this essential public infrastructure. Assessment and reporting of Peel s infrastructure relies on the data, asset levels of service and risk tolerances provided by Program staff. The Programs are accountable for management of the asset data, updating rehabilitation and replacement unit costs and monitoring/maintaining the asset levels of service necessary to ensure adequate service delivery at reasonable levels of risk. CAM Section utilizes the information it requires from the Programs to model the state of the infrastructure and forecast the asset needs and costs to maintain state of good repair. The results of the modeling exercise are reviewed with the Program s stakeholders and reported annually in the Infrastructure Stewardship Report. The water infrastructure has a very high score in meeting its condition and performance targets which is necessary for the delivery of safe drinking water. Proactive water main replacement programs have kept the water system reliable for homes and industries. Inspection programs are being initiated to assess Peel s most critical watermains. Presented below is the snapshot of 2013 infrastructure status and outlook report for water program.

13 Page 12

14 Page 13

15 Page 14 Endorsed by Dan Labrecque Commissioner of Public Works, Norma Trim Chief Financial Officer And Commissioner of Corporate Services, Region of Peel Region of Peel

16 Page 15 Appendix I Projected Statement of Financial Positions REGIONAL MUNICIPALITY OF PEEL-Drinking Water System Projected Statement of Financial Position (All Dollars in $000) Note: This finanical statement is part of the requirements by the Financial Plan Regulation (O.Regulation 435/07). The regulation recognizes that some financial information may be consolidated on a municipal level across numerous departments and it may be difficult for that information to be allocated to the drinking-water system. "N/A" below is left intentionally due to the fact that the financial system in Peel Region currently doesn't facilitate further breakdown. ASSETS Financial Assets Cash and Cash equivalents Account Receivables Water Billings User Fees Investement Income Long-term Investement Gross Financial Assets LIABILITIES Account Payable Deferred Revenue-Development Charges Employee Benefits and Other Liabilities Long-Term Debt Total Liabilities 2014(E) 2015(E) 2016(E) 2017(E) 2018(E) 2019(E) N/A* N/A* NET FINANCIAL ASSETS Non-Financial Assets Tangible Capital Assets 3,816,351 4,017,202 4,211,521 4,283,138 4,350,038 4,385,934 Inventory Prepaid Expenses N/A* TOTAL NET ASSETS In 000s 2013(E) 2014(E) 2015(E) 2016(E) 2017(E) 2018(E) 2019(E) CHANGES IN TANGIBLE CAPITAL ASSETS Opening Balance 3,596,424 3,816,351 4,017,202 4,211,521 4,283,138 4,350,038 Addition 293, , , , , ,517 Donations Write downs Disposals Depreciation Expense (73,464) (72,962) (72,790) (69,561) (69,437) (68,621) Ending Balance - 3,816,351 4,017,202 4,211,521 4,283,138 4,350,038 4,385,934 Level of Details related to the replacement of lead service pipes The new addition includes the amount set aside to replace aging infrastructure, including cast iron lead-joint watermain and associated services to the property line. However, the details of the amount directly to the repacement of lead service pipes are not further broken down.

17 Page 16 Appendix II Projected Statement of Financial Activities REGIONAL MUNICIPALITY OF PEEL-Drinking Water System Projected Statement of Financial Activities (All Dollars in $000) Note: This finanical statement is part of the requirements by the Financial Plan Regulation (O.Regulation 435/07). The regulation recognizes that some financial information may be consolidated on a municipal level across numerous departments and it may be difficult for that information to be allocated to the drinking-water system. "N/A" below is left intentionally due to the fact that the financial system in Peel Region currently doesn't facilitate further breakdown. 2014(E) 2015(E) 2016(E) 2017(E) 2018(E) 2019(E) REVENUES Water Billings (Peel +York) (201,211) (212,249) (223,911) (236,238) (249,266) (263,038) User Fees (45,498) (49,460) (52,798) (56,471) (61,443) (67,671) Total Revenue (246,709) (261,709) (276,709) (292,709) (310,709) (330,709) EXPENDITURES Operating Expenditures 146, , , , , ,222 Reserve Contributions 99, , , , , ,487 Interest Expenditures Other Expenditures Total Expenditures before Amortization 246, , , , , ,709 ANNUAL SURPLUS/DEFICIT BEFORE AMORTIZATION Accumulated Surplus/Deficit before Amortization Annual Amortization Expenses 44,784 47,715 50,743 49,491 51,675 45,057

18 Page 17 Appendix III Projected Statement of Changes in Financial Position REGIONAL MUNICIPALITY OF PEEL-Drinking Water System Projected Statement of Changes in Financial Position (All Dollars in $000) Note: This finanical statement is part of the requirements by the Financial Plan Regulation (O.Regulation 435/07). The regulation recognizes that some financial information may be consolidated on a municipal level across numerous departments and it may be difficult for that information to be allocated to the drinking-water system. "N/A" below is left intentionally due to the fact that the financial system in Peel Region currently doesn't facilitate further breakdown. OPERATIONS Increase in Net Financial Resources Uses Increase in Accounts Receivable Decrease in Accountable Payable Decrease in Deferred Revenue-Development Ch 2014(E) 2015(E) 2016(E) 2017(E) 2018(E) 2019(E) N/A* Sources Decrease in Account Receivable Increase in Account Payable Increase in Employee Benefits and Other Liabilitie N/A* Net Change in Cash from Operations CAPITALS Increase in Net Tangible Captial Asset Uses Cash to construct/acquire captial asset Sources Cash Proceeds from capital disposal N/A* Net Change in Cash from Capitals INVESTMENTS (Increase) Decrease in Net Investment FINANCING Increase/Decrease in Net Debt Net Change in Cash and Cash Equivalents Opening Cash and Cash Equivalents Closing Cash and Cash Equivalents N/A* N/A* N/A*

19 Page 18 Appendix IV Ten Year Capital Plan Sub Type General Description Yrs 6-10 Gross Miscellaneous works related to the overall regional water system UNALLOCATED FUNDS 1,000 1,000 1,000 1,000 1,000 5,000 10,000 FUNDING AVAILABLE FOR UNFORESEEN, UNPLANNED OR EMERGENCY WORKS UNDER MAINTENANCE PROJECT COSTS FUNDING TO COVER COSTS ASSOCIATED WITH COMPLETED CAPITAL PROJECTS UNDER MAINTENANCE. 1, , EASEMENT ACQUISITION FUNDING FOR THE ACQUISITION OF EASEMENTS FOR EXISTING AND PROPOSED WATER ASSETS. 10 YearTotals For: General 2,500 1,100 1,100 1,100 1,100 5,500 12,400 Water Treatment Plants, Reservoirs and Pumping Stations Growth and non-growth related works to upgrade, expand or add to new lake-based plant facilities. LAKEVIEW WATER TREATMENT PLANT EXPANSION - STANDBY POWER CONSTRUCTION OF ADDITIONAL STANDBY POWER IN COORDINATION WITH THE EXPANSION OF THE TREATMENT FACILITY. APPROXIMATELY 18% FUNDED BY YORK REGION. 10, , ALLOA RESERVOIR AND PUMPING STATION CONSTRUCTION OF A NEW RESERVOIR AND PUMPING STATION IN THE VICINITY OF MAYFIELD ROAD AND CREDITVIEW ROAD. 55, ,723

20 Page VICTORIA RESERVOIR 0 55, ,000 CONSTRUCTION OF A NEW RESERVOIR IN THE VICINITY OF KING STREET AND HURONTARIO STREET LAKEVIEW MAJOR CAPITAL IMPROVEMENT - SEDIMENTATION REHABILITATION OF THE SEDIMENTATION TANKS AT THE LAKEVIEW WATER TREATMENT PLANT. LAKEVIEW MAJOR CAPITAL IMPROVEMENT - FILTRATION REHABILITATION OF THE FILTERS AT THE LAKEVIEW WATER TREATMENT PLANT. LAKEVIEW MAJOR CAPITAL IMPROVEMENT - FILTRATION AND UV DISINFECTION REHABILITATION OF THE FILTERS AND CLEAR WELL AND INSTALLATION OF UV DISINFECTION AT THE LAKEVIEW WATER TREATMENT PLANT. LAKEVIEW MAJOR CAPITAL IMPROVEMENT - INTAKE REPLACEMENT OF THE CHEMICAL AND SAMPLING LINES IN THE INTAKE AT THE LAKEVIEW WATER TREATMENT PLANT. LORNE PARK MAJOR CAPITAL IMPROVEMENT - FILTRATION REHABILITATION OF THE FILTERS AT THE LORNE PARK WATER TREATMENT PLANT. LORNE PARK MAJOR CAPITAL IMPROVEMENT - RESERVOIR REHABILITATION OF THE RESERVOIR AT THE LORNE PARK WATER TREATMENT PLANT. NORTH STREETSVILLE ELEVATED TANK HYDRAULIC IMPROVEMENTS IMPLEMENTATION OF HYDRAULIC IMPROVEMENTS AT THE ELEVATED TANK, INCLUDING THE INSTALLATION OF A STATIC MIXING SYSTEM. 10, , , ,439 14, ,121 2, , , ,834 1, ,500

21 Page TRANSMISSION FACILITIES - MAJOR MAINTENANCE FUNDING FOR PLANNED MAJOR MAINTENANCE AT THE LAKE-BASED PUMPING STATIONS, RESERVOIRS, ELEVATED TANKS, GENERATION FACILITIES AND TRANSMISSION MAINS. TRANSMISSION FACILITIES - EQUIPMENT REPLACEMENT FUNDING FOR PLANNED EQUIPMENT REPLACEMENT AT THE LAKE-BASED PUMPING STATIONS, RESERVOIRS, ELEVATED TANKS, GENERATION FACILITIES AND TRANSMISSION MAINS. TREATMENT FACILITIES - MAJOR MAINTENANCE FUNDING FOR PLANNED MAJOR MAINTENANCE AT THE LAKE-BASED WATER TREATMENT PLANTS. TREATMENT FACILITIES - EQUIPMENT REPLACEMENT FUNDING FOR PLANNED EQUIPMENT REPLACEMENT AT THE LAKE-BASED WATER TREATMENT PLANTS. TREATMENT PROCESS OPTIMIZATION PROJECTS FUNDING FOR INVESTIGATIONS RELATED TO THE OPTIMIZATION OF TREATMENT PROCESSES AT THE LAKE-BASED WATER TREATMENT PLANTS. SECURITY SYSTEM IMPROVEMENTS AND UPGRADES IMPROVEMENTS AND UPGRADES TO THE SECURITY SYSTEMS AT THE LAKE-BASED WATER FACILITIES. DESIGN IN ,000 2,500 2,500 2,500 3,750 10,500 23,750 2,750 2,750 2,750 2,750 2,750 13,750 27,500 2,100 1,000 1,000 1,000 1,000 5,000 11,100 1,600 1,500 1,500 1,500 1,500 7,500 15, , , , RESERVOIR OPTIMIZATION PROGRAM 1, ,000 PROGRAM TO IMPLEMENT OPTIMIZATION MEASURES FOR THE RESERVOIRS IN THE LAKE-BASED WATER SUPPLY SYSTEM REHABILITATION OF THE BOLTON ELEVATED TANK CONDITION ASSESSMENT, CLEANING 413 2, ,163

22 Page 21 AND REHABILITATION OF THE BOLTON ELEVATED TANK. DESIGN IN PUMP OPTIMIZATION PROGRAM ,000 1,000 3,000 5,500 TESTING, REPLACEMENT AND IMPROVEMENT PROGRAM FOR THE LAKE-BASED PUMPING STATIONS LORNE PARK MAJOR CAPITAL IMPROVEMENT - INTAKE REPLACEMENT OF THE CHEMICAL AND SAMPLING LINES IN THE INTAKE AT THE LORNE PARK WATER TREATMENT PLANT. DESIGN IN LORNE PARK MAJOR CAPITAL IMPROVEMENT - CHEMICAL SYSTEMS IMPROVEMENTS AND UPGRADES TO THE CHEMICAL SYSTEMS AT THE LORNE PARK WATER TREATMENT PLANT. DESIGN IN LORNE PARK MAJOR CAPITAL IMPROVEMENT - LOW-LIFT PUMPING STATION REHABILITATION OF THE LOW-LIFT PUMPING STATION AT THE LORNE PARK WATER TREATMENT PLANT. DESIGN IN SILVERTHORN RESERVOIR AND PUMPING STATION - IMPROVEMENTS AND UPGRADES CONSTRUCTION OF MAJOR IMPROVEMENTS AND UPGRADES AT THE SILVERTHORN RESERVOIR AND PUMPING STATION. DESIGN IN REPLACEMENT OF MEMBRANE FILTERS REPLACEMENT PROGRAM FOR THE MEMBRANE FILTERS AT THE LAKE-BASED WATER TREATMENT PLANTS. REPLACEMENT OF GRANULAR ACTIVATED CARBON FILTER MEDIA REPLACEMENT PROGRAM FOR THE GRANULAR ACTIVATED CARBON FILTER MEDIA USED TO MITIGATE TASTE AND ODOUR AT THE LAKE-BASED WATER TREATMENT PLANTS , , , , , , , , ,034 38, , ,739 4,000 9,802

23 Page LAKEVIEW MAJOR CAPITAL IMPROVEMENT - LOW-LIFT PUMPING STATION REHABILITATION OF THE LOW-LIFT PUMPING STATION AT THE LAKEVIEW WATER TREATMENT PLANT. DESIGN IN LAKEVIEW MAJOR CAPITAL IMPROVEMENT - RAW WATER WELL REHABILITATION OF THE RAW WATER WELL IN THE LOW-LIFT PUMPING STATION AT THE LAKEVIEW WATER TREATMENT PLANT. DESIGN IN REHABILITATION OF THE SNELGROVE ELEVATED TANK CONDITION ASSESSMENT, CLEANING AND REHABILITATION OF THE SNELGROVE ELEVATED TANK. DESIGN IN BECKETT SPROULE PUMPING STATION - SURGE SUPPRESSION SYSTEM CONSTRUCTION OF A NEW SURGE SUPPRESSION SYSTEM AT THE BECKETT SPROULE PUMPING STATION. DESIGN IN BECKETT SPROULE PUMPING STATION - IMPROVEMENTS AND UPGRADES CONSTRUCTION OF IMPROVEMENTS AND UPGRADES AT THE BECKETT SPROULE PUMPING STATION. DESIGN IN TRANSIENT PROTECTION FOR THE LAKE-BASED WATER SUPPLY SYSTEM FUNDING TO IMPLEMENT TRANSIENT PROTECTION MEASURES FOR THE LAKE-BASED WATER SUPPLY SYSTEM. WEST BRAMPTON RESERVOIR AND PUMPING STATION EXPANSION EXPANSION OF THE FACILITY WITH THE CONSTRUCTION OF A NEW RESERVOIR CELL AND THE INSTALLATION OF ADDITIONAL LOW-LIFT PUMPING CAPACITY. DESIGN IN , , , , , , , ,046 6, , ,500 3, ,320 19, ,120

24 Page FUTURE NON-GROWTH RELATED WATER FACILITIES PROJECTS FUNDING FOR NON-GROWTH-RELATED WATER FACILITIES PROJECTS IN THE SIXTH YEAR OR LATER OF THE REGION'S CAPITAL PLAN FOR THE WATER PROGRAM. FUTURE GROWTH-RELATED WATER FACILITIES PROJECTS FUNDING FOR GROWTH-RELATED WATER FACILITIES PROJECTS IN THE SIXTH YEAR OR LATER OF THE REGION'S CAPITAL PLAN FOR THE WATER PROGRAM ,043 37, ,051 8, YearTotals For: Treatment Facilities 105,795 72,826 46,660 66,334 33, , ,282 Transmission System - Development Installations of lake-based transmission mains to sustain Peel's growth VICTORIA TRANSMISSION MAIN 29,765 27, ,694 CONSTRUCTION OF A 900MM ZONE 6 TRANSMISSION MAIN FROM THE NORTH BRAMPTON PUMPING STATION TO THE FUTURE VICTORIA RESERVOIR AND A 1200MM ZONE 6 SUB-TRANSMISSION MAIN FROM THE FUTURE VICTORIA RESERVOIR TO MAYFIELD ROAD MAYFIELD ROAD SUB-TRANSMISSION MAIN (PHASE 1) CONSTRUCTION OF A 750MM ZONE 6 SUB-TRANSMISSION MAIN ON MAYFIELD ROAD FROM INDER HEIGHTS DRIVE TO STONEGATE DRIVE. ADDITIONAL FUNDS. PROPERTY ACQUISITION FOR LAKE- BASED TRANSMISSION MAINS FUNDING FOR PROPERTY ACQUISITION FOR LAKE-BASED TRANSMISSION MAINS. 1, ,000 3, ,000 6, EAST BRAMPTON TRANSMISSION MAIN TWINNING CONSTRUCTION OF A 1200MM ZONE 4 TRANSMISSION MAIN FROM THE 11, , ,250

25 Page BECKETT-SPROULE PUMPING STATION TO THE EAST BRAMPTON RESERVOIR. DESIGN IN WILLIAMS PARKWAY SUB- TRANSMISSION MAIN (PHASES 1 AND 2) CONSTRUCTION OF A 900MM ZONE 5 SUB-TRANSMISSION MAIN FROM THE EAST BRAMPTON PUMPING STATION TO MCLAUGHLIN ROAD. IN ADVANCE OF THE CITY OF BRAMPTON'S ROAD PROGRAM. DESIGN IN CENTRAL BRAMPTON SUB- TRANSMISSION MAIN CONSTRUCTION OF A ZONE 5 SUB-TRANSMISSION MAIN FROM THE BECKETT-SPROULE PUMPING STATION TO THE EAST BRAMPTON PUMPING STATION. DESIGN IN FUTURE TRANSMISSION SYSTEM PROJECTS FUNDING FOR TRANSMISSION SYSTEM PROJECTS IN THE SIXTH YEAR OR LATER OF THE REGION'S CAPITAL PLAN FOR THE WATER PROGRAM. 6, , , ,551 9, , , ,696 43, YearTotals For: WTS-Development 60,690 27, , ,801 46, ,434 Transmission System - Improvements and Upgrades Replacements, upgrades and new facilities related to the lake-based transmission system (this category presently has no works planned, but will be required in the future). REHABILITATION OF THE QUEENSWAY FEEDERMAIN REHABILITATION AND UPGRADE OF THE QUEENSWAY FEEDERMAIN TO UTILIZE IT AS A FULL ZONE 2 SUB-TRANSMISSION MAIN. 0 8, , FLOW AND PRESSURE MONITORING FOR THE LAKE-BASED WATER SUPPLY SYSTEM INSTALLATION OF FLOW AND PRESSURE MONITORING EQUIPMENT FOR THE LAKE-BASED WATER SUPPLY SYSTEM. 5, , INSPECTION AND CONDITION ,750 7,500

26 Page 25 ASSESSMENT OF THE LAKE-BASED TRANSMISSION MAINS INSPECTION AND CONDITION ASSESSMENT PROGRAM FOR THE LAKE-BASED WATER TRANSMISSION MAINS AND IMPLEMENTATION OF REAL-TIME MONITORING MM STREETSVILLE TRANSMISSION MAIN - REHABILITATION REHABILITATION OF THE 1500MM STREETSVILLE TRANSMISSION MAIN. DESIGN IN REHABILITATION OF THE LAKE- BASED WATER TRANSMISSION MAINS REHABILITATION PROGRAM FOR THE LAKE-BASED WATER TRANSMISSION MAINS IDENTIFIED AS NEEDING REPAIR DURING THE CONDITION ASSESSMENT PROGRAM. 2100MM HANLAN TRANSMISSION MAIN - REHABILITATION REHABILITATION OF THE 2100MM HANLAN TRANSMISSION MAIN. DESIGN IN ,000 1,000 1,000 5,000 8, , , YearTotals For: WTS-Imp. & Updgrades 5,878 10,386 1,750 1,975 3,250 8,750 31,989 Feedermain Distribution System - Development Installations of distribution feedermains to sustain Peel's growth MM FEEDERMAIN - THE GORE ROAD FROM CASTLEMORE ROAD TO COUNTRYSIDE DRIVE. IN ADVANCE OF THE REGION OF PEEL'S ROAD PROGRAM. ADDITIONAL FUNDS. 750MM FEEDERMAIN - COUNTRYSIDE DRIVE FROM GOREWAY DRIVE TO THE GORE ROAD. ADDITIONAL FUNDS. 1, ,000 1, , MM FEEDERMAIN - TORBRAM ROAD 2, ,470

27 Page 26 FROM MAYFIELD ROAD TO APPROXIMATELY 100 METRES NORTH OF COUNTRYSIDE DRIVE. IN ADVANCE OF THE CITY OF BRAMPTON'S ROAD PROGRAM MM FEEDERMAIN - WANLESS DRIVE FROM APPROXIMATELY 200 METRES WEST OF CREDITVIEW ROAD TO MISSISSAUGA ROAD. IN CONJUNCTION WITH THE CITY OF BRAMPTON'S ROAD PROGRAM. ADDITIONAL FUNDS. 600MM FEEDERMAIN - ERIN MILLS PARKWAY AND EGLINTON AVENUE WEST ON ERIN MILLS PARKWAY FROM THE STREETSVILLE PUMPING STATION TO EGLINTON AVENUE WEST AND ON EGLINTON AVENUE WEST FROM ERIN MILLS PARKWAY TO GLEN ERIN DRIVE. 400MM FEEDERMAIN - EGLINTON AVENUE WEST FROM GLEN ERIN DRIVE TO WINSTON CHURCHILL BOULEVARD. 1, ,260 4, ,838 1, , MM FEEDERMAIN - BURNHAMTHORPE ROAD FROM CAWTHRA ROAD TO CONFEDERATION PARKWAY. 0 60, , MM FEEDERMAIN - MAYFIELD ROAD FROM THE FUTURE ALLOA PUMPING STATION TO MISSISSAUGA ROAD. 2, , MM FEEDERMAIN - CHINGUACOUSY ROAD FROM MAYFIELD ROAD TO APPROXIMATELY 100 METRES NORTH OF WANLESS DRIVE. IN ADVANCE OF THE CITY OF BRAMPTON'S ROAD PROGRAM. 400MM FEEDERMAIN - AIRPORT ROAD (CALEDON EAST) FROM THE CALEDON EAST RESERVOIR 1, ,899 5, ,116

28 Page 27 TO WALKER ROAD MM FEEDERMAIN - BRITANNIA ROAD EAST FROM THE HANLAN PUMPING STATION TO DIXIE ROAD. DESIGN IN , , MM FEEDERMAIN - SQUARE ONE DRIVE FROM DUKE OF YORK BOULEVARD TO CITY CENTRE DRIVE. 1, , MM FEEDERMAIN - FUTURE EAST- WEST SPINE ROAD (MOUNT PLEASANT) FROM THE FUTURE COLLECTOR ROAD B TO THE FUTURE COLLECTOR ROAD C IN MOUNT PLEASANT. 400MM FEEDERMAIN - FUTURE COLLECTOR ROAD C (MOUNT PLEASANT) FROM MAYFIELD ROAD TO THE FUTURE EAST-WEST SPINE ROAD IN MOUNT PLEASANT. 400MM FEEDERMAIN - FUTURE COLLECTOR ROAD B (MOUNT PLEASANT) FROM MAYFIELD ROAD TO THE FUTURE EAST-WEST SPINE ROAD IN MOUNT PLEASANT. 1, ,223 1, ,466 1, , MM FEEDERMAIN - MCVEAN DRIVE 285 1, ,184 FROM MAYFIELD ROAD TO COUNTRYSIDE DRIVE. DESIGN IN MM FEEDERMAIN - MAYFIELD ROAD FROM GOREWAY DRIVE TO THE GORE ROAD. IN ADVANCE OF THE REGION OF PEEL'S ROAD PROGRAM. DESIGN IN MM FEEDERMAIN - THE GRANGE SIDEROAD FROM THE NEW CALEDON EAST GROUNDWATER WELL ON GRANGE 926 6, , , ,009

29 Page 28 SIDEROAD TO AIRPORT ROAD. DESIGN IN MM FEEDERMAIN - CAMILLA ROAD FROM DUNDAS STREET EAST TO KING STREET EAST. DESIGN IN MM FEEDERMAIN - DUKE OF YORK BOULEVARD FROM WEBB DRIVE TO CITY CENTRE DRIVE. DESIGN IN , , MM FEEDERMAIN - WEBB DRIVE AND GRAND PARK DRIVE FROM DUKE OF YORK BOULEVARD TO BURNHAMTHORPE ROAD WEST. DESIGN IN MM FEEDERMAIN - HERITAGE ROAD FROM THE MEADOWVALE NORTH PUMPING STATION TO STEELES AVENUE WEST. DESIGN IN MM FEEDERMAIN - FUTURE STREET (COUNTRYSIDE VILLAGES) FROM THE EAST SIDE OF THE CREEK TO BRAMALEA ROAD , , , , , , MM FEEDERMAIN - HURONTARIO STREET FROM DOUGALL AVENUE TO THE FUTURE EAST-WEST COLLECTOR ROAD IN MAYFIELD WEST PHASE , , MM FEEDERMAIN - WEBB DRIVE , ,216 FROM DUKE OF YORK BOULEVARD TO KARIYA DRIVE. DESIGN IN MM FEEDERMAIN - FUTURE STREET (COUNTRYSIDE VILLAGES) FROM 310 METRES EAST OF BRAMALEA ROAD TO TORBRAM ROAD , , MM FEEDERMAIN - COUNTRYSIDE DRIVE , ,924

30 Page 29 FROM THE GORE ROAD TO CLARKWAY DRIVE. DESIGN IN MM FEEDERMAIN - COUNTRYSIDE DRIVE FROM CLARKWAY DRIVE TO COLERAINE DRIVE. DESIGN IN , , MM FEEDERMAIN - HIGHWAY , ,649 FROM CASTLEMORE ROAD TO COLERAINE DRIVE. DESIGN IN MM FEEDERMAIN - CHINGUACOUSY ROAD FROM MAYFIELD ROAD TO THE FUTURE EAST-WEST COLLECTOR ROAD IN MAYFIELD WEST PHASE 2. DESIGN IN , , MM FEEDERMAIN - BOVAIRD DRIVE , ,894 FROM MISSISSAUGA ROAD TO HERITAGE ROAD. IN ADVANCE OF THE REGION OF PEEL'S ROAD PROGRAM. DESIGN IN MM FEEDERMAIN - GOREWAY DRIVE FROM CASTLEMORE ROAD TO COUNTRYSIDE DRIVE. IN ADVANCE OF THE CITY OF BRAMPTON'S ROAD PROGRAM. DESIGN IN MM FEEDERMAIN - MAYFIELD ROAD FROM THE GORE ROAD TO CLARKWAY DRIVE. DESIGN IN ,229 8, , , , MM FEEDERMAIN - FUTURE EAST- WEST COLLECTOR ROAD (MAYFIELD WEST PHASE 2) FROM HURONTARIO STREET TO MCLAUGHLIN ROAD , , MM FEEDERMAIN - COLERAINE DRIVE FROM THE BOLTON ELEVATED TANK TO ,386 9, ,625

31 Page 30 MAYFIELD ROAD. DESIGN IN MM FEEDERMAIN - ERIN MILLS PARKWAY FROM THE STREETSVILLE PUMPING STATION TO THOMAS STREET. DESIGN IN MM FEEDERMAIN - ERIN MILLS PARKWAY FROM THOMAS STREET TO BRITANNIA ROAD WEST. DESIGN IN ,610 7, ,089 7,260 8, MM FEEDERMAIN - LAKESHORE ROAD FROM THE LAKEVIEW WATER TREATMENT PLANT TO WESLEY AVENUE. DESIGN IN MM FEEDERMAIN - FUTURE FINANCIAL DRIVE (BRAM WEST) FROM HERITAGE ROAD TO WINSTON CHURCHILL BOULEVARD ,753 18,351 21, , , MM FEEDERMAIN - HERITAGE ROAD FROM THE FUTURE EXTENSION OF WILLIAMS PARKWAY TO THE FUTURE NEW ROAD A. IN ADVANCE OF THE CITY OF BRAMPTON'S ROAD PROGRAM. DESIGN IN MM FEEDERMAIN - HERITAGE ROAD FROM THE WEST BRAMPTON PUMPING STATION TO BOVAIRD DRIVE. IN ADVANCE OF THE CITY OF BRAMPTON'S ROAD PROGRAM. DESIGN IN MM FEEDERMAIN - FUTURE STREET (MAYFIELD WEST PHASE 2) FROM MCLAUGHLIN ROAD TO CHINGUACOUSY ROAD ,270 6, ,210 5, , , FUTURE DISTRIBUTION FEEDERMAIN PROJECTS FUNDING FOR DISTRIBUTION ,812 72,812

32 Page 31 FEEDERMAIN PROJECTS IN THE SIXTH YEAR OR LATER OF THE REGION'S CAPITAL PLAN FOR THE WATER PROGRAM. 10 YearTotals For: WDS- Development 30,692 80,647 12,831 18,917 40, , ,927 Distribution System - Rehabilitation and Upgrades Replacements, repairs and upgrades related to the lake-based distribution system STREETSVILLE 2, ,500 REPLACEMENT OF THE EXISTING 400MM WATERMAINS ON QUEEN STREET SOUTH AND THOMAS STREET IN STREETSVILLE. ADDITIONAL FUNDS SYSTEM IMPROVEMENTS IN CENTRAL ERIN MILLS (PHASE 1) IMPLEMENTATION OF SYSTEM IMPROVEMENTS IN CENTRAL ERIN MILLS TO IMPROVE RESIDUAL PRESSURE FOR CUSTOMERS. SYSTEM IMPROVEMENTS IN SOUTHWEST MISSISSAUGA IMPLEMENTATION OF SYSTEM IMPROVEMENTS IN SOUTHWEST MISSISSAUGA TO IMPROVE WATER QUALITY AND RELIABILITY AND TO IMPROVE RESIDUAL PRESSURE FOR CUSTOMERS. WATERMAIN REPLACEMENTS IN CONJUNCTION WITH INTERSECTION IMPROVEMENTS REPLACEMENT OF WATERMAINS AND SYSTEM IMPROVEMENTS IN CONJUNCTION WITH REGIONAL INTERSECTION IMPROVEMENT PROJECTS. 400MM/300MM WATERMAIN - HEART LAKE ROAD AND KING STREET FROM THE FUTURE EAST-WEST COLLECTOR ROAD IN MAYFIELD WEST TO THE HERB CAMPBELL PUBLIC SCHOOL. 2, , ,395 8,899 8, , , , WATER DISTRIBUTION SYSTEM - 1,100 1,100 1,100 1,100 1,100 5,500 11,000

33 Page 32 MAJOR MAINTENANCE FUNDING FOR MAJOR MAINTENANCE OF THE REGION OF PEEL'S WATER DISTRIBUTION SYSTEM REPLACEMENT OF WATER SERVICES ,000 FUNDING FOR THE REPLACEMENT OF 13-MM (1/2-INCH) WATER SERVICES WITH 20-MM (3/4-INCH) WATER SERVICES REPLACEMENT OF WATER VALVES 1, ,000 FUNDING FOR THE REPLACEMENT OF VALVES ON WATERMAINS WITH A DIAMETER EQUAL TO OR GREATER THAN 400 MM DESIGN FOR THE REPLACEMENT OF WATERMAINS IN PEEL FUNDING FOR THE DESIGN OF WATERMAIN REPLACEMENT PROJECTS IN THE REGION OF PEEL FOR THE FOLLOWING YEAR TO FACILITATE ON-TIME CONSTRUCTION. RURAL HYDRANT ACCESSIBILITY IMPROVEMENTS FUNDING TO IMPROVE ACCESSIBILITY FOR HYDRANTS IN RURAL AREAS FOR REGULAR MAINTENANCE AND FIRE FIGHTING PURPOSES. REPLACEMENT OF WATERMAINS AND SYSTEM IMPROVEMENTS IN CALEDON REPLACEMENT OF WATERMAINS, SYSTEM IMPROVEMENTS AND LOOPING OF DEAD-END MAINS IN CALEDON TO IMPROVE WATER QUALITY AND RELIABILITY OF THE DISTRIBUTION SYSTEM. REPLACEMENT OF WATERMAINS AND SYSTEM IMPROVEMENTS IN MISSISSAUGA REPLACEMENT OF WATERMAINS, SYSTEM IMPROVEMENTS AND LOOPING OF DEAD-END MAINS IN MISSISSAUGA TO IMPROVE WATER QUALITY AND RELIABILITY OF THE DISTRIBUTION SYSTEM. 4,500 4,500 4,500 4,500 4,500 22,500 45,000 1, ,000 1, ,412 32, ,202

34 Page SYSTEM IMPROVEMENTS IN CENTRAL ERIN MILLS (PHASE 2) IMPLEMENTATION OF SYSTEM IMPROVEMENTS IN CENTRAL ERIN MILLS TO IMPROVE RESIDUAL PRESSURE FOR CUSTOMERS. DESIGN IN SYSTEM IMPROVEMENTS IN CREDIT WOODLANDS IMPLEMENTATION OF SYSTEM IMPROVEMENTS IN THE CREDIT WOODLANDS AREA TO IMPROVE RESIDUAL PRESSURE FOR CUSTOMERS. 300MM WATERMAIN - THE QUEENSWAY WEST FROM HURONTARIO STREET TO STAVEBANK ROAD. DESIGN IN , ,602 10, , , , REPLACEMENT OF WATERMAINS AND SYSTEM IMPROVEMENTS IN BRAMPTON REPLACEMENT OF WATERMAINS, SYSTEM IMPROVEMENTS AND LOOPING OF DEAD-END MAINS IN BRAMPTON TO IMPROVE WATER QUALITY AND RELIABILITY OF THE DISTRIBUTION SYSTEM. REPLACEMENT OF WATERMAINS IN CALEDON REPLACEMENT OF WATERMAINS, SYSTEM IMPROVEMENTS AND LOOPING OF DEAD-END MAINS IN CALEDON TO IMPROVE WATER QUALITY AND RELIABILITY OF THE DISTRIBUTION SYSTEM. REPLACEMENT OF WATERMAINS IN MISSISSAUGA REPLACEMENT OF WATERMAINS, SYSTEM IMPROVEMENTS AND LOOPING OF DEAD-END MAINS IN MISSISSAUGA TO IMPROVE WATER QUALITY AND RELIABILITY OF THE DISTRIBUTION SYSTEM. REPLACEMENT OF WATERMAINS IN BRAMPTON 15, , ,000 1,000 1,000 1,000 5,000 9, ,234 14,492 24,358 24, , , ,966 12,000 12,000 60,000 93,966

35 Page 34 REPLACEMENT OF WATERMAINS, SYSTEM IMPROVEMENTS AND LOOPING OF DEAD-END MAINS IN BRAMPTOM TO IMPROVE WATER QUALITY AND RELIABILITY OF THE DISTRIBUTION SYSTEM MM FEEDERMAIN - GOREWAY DRIVE FROM QUEEN STREET EAST TO INTERMODAL DRIVE. DESIGN IN ,372 9, , YearTotals For: WDS-Imp. & Updgrades 82,135 73,625 49,200 51,601 43, , ,381 Groundwater Systems Replacements, upgrades, and new facilities related to groundwater based systems. CALEDON EAST RESERVOIR EXPANSION EXPANSION OF THE EXISTING RESERVOIR TO INCREASE STORAGE CAPACITY FOR GROWTH IN CALEDON EAST. 4, , GROUNDWATER SYSTEMS - MAJOR MAINTENANCE AND EQUIPMENT REPLACEMENT FUNDING FOR PLANNED MAJOR MAINTENANCE AND EQUIPMENT REPLACEMENT FOR THE GROUNDWATER SYSTEMS. CALEDON EAST - NEW GROUNDWATER WELL CONSTRUCTION OF A NEW GROUNDWATER WELL TO SERVICE GROWTH IN CALEDON EAST. DESIGN IN PROPERTY ACQUISITION FOR GROUNDWATER SYSTEM PROJECTS FUNDING FOR PROPERTY ACQUISITION FOR GROUNDWATER SYSTEM PROJECTS ,250 2, , , YearTotals For: Groundwater Systems 5,201 7, ,250 14,501 Water Studies

36 Page 35 Water Studies, Environmental Assessments and Planning WATER SERVICING MASTER PLAN UPDATE REVIEW AND UPDATE OF THE REGION OF PEEL WATER SERVICING MASTER PLAN. WATER DISTRIBUTION SYSTEM ASSET MANAGEMENT PLAN UPDATE DEVELOPMENT OF A WATER DISTRIBUTION SYSTEM ASSET MANAGEMENT PLAN FOR THE REGION OF PEEL , ,000 2, , ,000 2, FUTURE WATER STUDIES PROJECTS ,000 3,000 FUNDING FOR WATER STUDIES PROJECTS IN THE SIXTH YEAR OR LATER OF THE REGION'S CAPITAL PLAN FOR THE WATER PROGRAM. 10 YearTotals For: Water Studies ,000 1, ,000 7,500 Operating Capital PROJECT MANAGEMENT IMPROVEMENT INITIATIVE INITIATIVE TO IMPROVE PROJECT MANAGEMENT METHODOLOGIES WITHIN THE WATER AND WASTEWATER DIVISIONS OF PUBLIC WORKS. MUNICIPAL COORDINATION FOR NON- REGIONAL CAPITAL PROJECTS FUNDING FOR REGIONAL STAFF TO COORDINATE WITH THE AREA MUNICIPALITIES ON NON-REGIONAL CAPITAL PROJECTS. WATER INFRASTRUCTURE ASSET MANAGEMENT FUNDING FOR THE DEVELOPMENT OF ASSET MANAGEMENT PROCESSES AND PROGRAMS AND SUPPORTING TOOLS AND DATA COLLECTION TO SUPPORT ASSET MANAGEMENT OF THE REGION'S WATER INFRASTRUCTURE ,500 3, ,500 5,000

37 Page DEVELOPMENT-RELATED WATER INFRASTRUCTURE PLANNING FUNDING FOR WATER INFRASTRUCTURE PLANNING AND STUDIES RELATED TO DEVELOPMENT. SOURCE WATER PROTECTION, LAND MANAGEMENT AND WELLHEAD PROTECTION GROUNDWATER-RELATED SOURCE WATER PROTECTION, LAND MANAGEMENT AND WHPA ISSUES IN PEEL RELATING TO PROVINCIALLY LEGISLATED REQUIREMENTS UNDER THE CLEAN WATER ACT, ,750 7, YearTotals For: Operating Capital 1,920 1,920 1,550 1,550 1,550 7,750 16,240 Totals for 10 Year Capital Plan: 295, , , , , ,264 1,650,654