Town of Oakville 2009-2018 Capital Forecast & Financial Plan Summary by Department and Program DEPARTMENT

Town of Oakville 20092018 Capital Forecast & Financial Plan Summary by Department and Program DEPARTMENT 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast GENERAL GOVERNMENT General Government 300,000 200,000 150,000 300,000 150,000 150,000 150,000 150,000 300,000 150,000 2,000,000 Total GENERAL GOVERNMENT 300,000 200,000 150,000 300,000 150,000 150,000 150,000 150,000 300,000 150,000 2,000,000 CORPORATE SERVICES Capital Assets 5,189,500 7,190,000 5,002,000 5,229,500 5,202,500 5,143,500 7,226,100 7,633,600 3,788,300 4,100,800 55,705,800 Information Systems & Solutions 2,085,000 2,005,000 2,170,000 1,700,000 2,205,000 2,885,000 2,300,000 2,210,000 1,435,000 2,675,000 21,670,000 Total CORPORATE SERVICES 7,274,500 9,195,000 7,172,000 6,929,500 7,407,500 8,028,500 9,526,100 9,843,600 5,223,300 6,775,800 77,375,800 COMMUNITY SERVICES Parks and Open Space 10,678,500 12,295,900 13,373,800 10,699,500 8,224,300 12,153,900 7,533,700 7,718,600 6,560,100 6,733,200 95,971,500 Oakville Fire Department 1,060,000 1,230,000 1,695,000 2,885,000 4,300,000 7,198,600 1,500,000 2,015,000 2,830,000 6,180,000 30,893,600 Recreation and Culture Department 25,505,500 26,409,100 9,146,500 1,248,600 3,825,500 1,092,900 5,954,500 5,868,000 6,911,000 751,000 86,712,600 Oakville Public Library 105,000 1,005,000 105,000 155,000 105,000 75,000 1,160,100 5,050,000 9,173,100 9,000,000 25,933,200 Oakville Galleries 72,200 72,200 72,200 72,200 72,200 72,200 72,200 72,200 72,200 60,100 709,900 Total COMMUNITY SERVICES 37,421,200 41,012,200 24,392,500 15,060,300 16,527,000 20,592,600 16,220,500 20,723,800 25,546,400 22,724,300 240,220,800 INFRASTRUCTURE & TRANSP. SERVICES Roads & Works 1,273,000 1,868,000 2,186,000 4,433,000 4,702,000 4,781,000 2,719,000 5,048,000 2,327,000 2,457,000 31,794,000 Engineering and Construction 26,614,000 27,758,600 29,689,600 31,032,200 32,175,000 48,522,000 42,875,500 24,631,000 40,019,000 49,286,000 352,602,900 Oakville Transit 9,726,600 4,570,000 2,875,000 20,534,000 23,276,000 17,525,000 8,200,000 7,875,000 7,405,000 10,365,000 112,351,600 Environmental Policy 50,000 50,000 50,000 20,000 50,000 100,000 20,000 340,000 Total INFRASTRUCTURE & TRANSP. SERVICES 37,663,600 34,246,600 34,800,600 55,999,200 60,173,000 70,878,000 53,894,500 37,554,000 49,751,000 62,128,000 497,088,500 PLANNING, DEV & BLDNG SERVICES Building Services Planning Services 1,753,400 683,400 583,400 383,400 593,400 700,000 110,000 300,000 110,000 300,000 5,517,000 Development Services 50,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 370,000 Total PLANNING, DEV & BLDNG SERVICES 1,803,400 723,400 623,400 423,400 633,400 740,000 150,000 340,000 150,000 300,000 5,887,000 TOTAL 84,462,700 85,377,200 67,138,500 78,712,400 84,890,900 100,389,100 79,941,100 68,611,400 80,970,700 92,078,100 822,572,100

Town of Oakville 2009 2018 CAPITAL FORECAST Program Summary by Department and Financing Sources 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast PROGRAM GROSS COST General Government 300,000 200,000 150,000 300,000 150,000 150,000 150,000 150,000 300,000 150,000 2,000,000 Capital Assets 5,189,500 7,190,000 5,002,000 5,229,500 5,202,500 5,143,500 7,226,100 7,633,600 3,788,300 4,100,800 55,705,800 Information Systems & Solutions 2,085,000 2,005,000 2,170,000 1,700,000 2,205,000 2,885,000 2,300,000 2,210,000 1,435,000 2,675,000 21,670,000 Parks and Open Space 10,678,500 12,295,900 13,373,800 10,699,500 8,224,300 12,153,900 7,533,700 7,718,600 6,560,100 6,733,200 95,971,500 Oakville Fire Department 1,060,000 1,230,000 1,695,000 2,885,000 4,300,000 7,198,600 1,500,000 2,015,000 2,830,000 6,180,000 30,893,600 Recreation and Culture Department 25,505,500 26,409,100 9,146,500 1,248,600 3,825,500 1,092,900 5,954,500 5,868,000 6,911,000 751,000 86,712,600 Oakville Public Library 105,000 1,005,000 105,000 155,000 105,000 75,000 1,160,100 5,050,000 9,173,100 9,000,000 25,933,200 Oakville Galleries 72,200 72,200 72,200 72,200 72,200 72,200 72,200 72,200 72,200 60,100 709,900 Roads & Works 1,273,000 1,868,000 2,186,000 4,433,000 4,702,000 4,781,000 2,719,000 5,048,000 2,327,000 2,457,000 31,794,000 Engineering and Construction 26,614,000 27,758,600 29,689,600 31,032,200 32,175,000 48,522,000 42,875,500 24,631,000 40,019,000 49,286,000 352,602,900 Oakville Transit 9,726,600 4,570,000 2,875,000 20,534,000 23,276,000 17,525,000 8,200,000 7,875,000 7,405,000 10,365,000 112,351,600 Environmental Policy 50,000 50,000 50,000 20,000 50,000 100,000 20,000 340,000 Building Services Planning Services 1,753,400 683,400 583,400 383,400 593,400 700,000 110,000 300,000 110,000 300,000 5,517,000 Development Services 50,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 370,000 Total Department/Project $ 84,462,700 $ 85,377,200 $ 67,138,500 $ 78,712,400 $ 84,890,900 $ 100,389,100 $ 79,941,100 $ 68,611,400 $ 80,970,700 $ 92,078,100 $ 822,572,100 FUNDING SOURCES Operating Reserves Equipment Reserves 4,041,100 4,554,130 4,604,600 5,406,800 6,690,300 6,216,100 6,014,000 5,500,000 5,627,900 5,223,800 53,878,730 Capital Reserves 6,564,300 4,931,000 2,161,500 808,300 896,400 386,900 484,000 281,000 140,000 260,000 16,913,400 Corporate Reserves Discretionary RF 1,278,100 440,000 500,000 500,000 500,000 600,000 600,000 650,000 650,000 835,000 6,553,100 Obligatory RF 558,900 2,032,470 2,268,900 2,044,000 1,332,000 784,800 1,165,500 1,058,400 891,900 1,058,400 13,195,270 Gas Tax RF 8,576,700 4,160,000 5,773,500 12,529,500 11,079,400 9,106,000 6,036,500 6,515,000 7,883,400 7,991,400 79,651,400 DC Reserve Funds 37,098,400 42,891,500 23,692,800 26,814,600 24,686,200 47,143,500 36,955,800 21,786,100 32,540,200 44,888,800 338,497,900 Debentures 2,153,000 2,000,000 1,675,900 5,849,200 8,089,600 6,941,500 600,000 650,000 27,959,200 Local Infrastructure Funding* 3,716,100 4,447,200 7,120,000 4,202,500 9,550,000 7,879,900 8,546,800 9,289,500 9,925,100 3,075,000 67,752,100 Other Revenue 4,593,200 1,172,120 48,000 48,000 48,000 48,000 48,000 48,000 1,229,250 2,149,250 9,431,820 General Capital Reserve 4,528,500 6,241,980 4,628,400 4,222,700 2,707,400 3,981,600 3,561,100 2,789,100 3,403,300 4,303,900 40,367,980 Contribution Operating 11,354,400 12,506,800 14,664,900 16,286,800 19,311,600 17,300,800 16,529,400 20,694,300 18,079,650 21,642,550 168,371,200 TOTAL FUNDING SOURCES $ 84,462,700 $ 85,377,200 $ 67,138,500 $ 78,712,400 $ 84,890,900 $ 100,389,100 $ 79,941,100 $ 68,611,400 $ 80,970,700 $ 92,078,100 $ 822,572,100

THE 20092018 CAPITAL FORECAST This section provides an overview of the 20092018 Capital Forecast. A detailed presentation will be provided at the May 28 th Budget Committee Meeting. As shown in the previous pages, the total proposed 10 Year Capital Forecast includes expenditures of $822.6 million. This represents and increase of $43 million over the forecast included in the 2008 Budget Book (20092017 comparison). This increase is driven by rising construction and commodity cost experienced in the past year and the addition of various new projects in the later years to service growth. The Engineering and Construction program has experienced the largest increase at $39 million which is a direct reflection of recent construction cost increases along with the addition of an enhanced program to service the growth which is largely supported by Development Charges. In addition, the forecast includes revisions to the 2009 Capital Budget. The 2009 budget has been revised to $84.5 million to incorporate the recommendations included in the 2009 Capital Budget Revisions report approved by council in April. This represents a reduction of $9.8 million from the originally approved budget of $94.3 million. The following charts and tables outline the major areas of expenditure and the financing sources to support these expenditures. This first graph illustrates the 20092018 capital expenditures by program type. The largest area of capital expenditures relates to Engineering & Construction, which totals $ 352.6 million, or 43% of the total Capital Forecast. This is followed by Transit with $112.4 million, Parks & Open Space with $96.0 million and Recreation & Culture with $87.4 million. Engineering and Construction, $352.6, 42.9% 20092018 CAPITAL FORECAST BY PROGRAM $ 822.6 Million Roads & Works, $31.8, 3.9% Oakville Public Library, $25.9, 3.2% Oakville Transit, $112.4, 13.7% Planning & Development Services, $5.9, 0.7% Recreation and Culture, $87.4, 10.6% Other, $2.3, 0.3% Capital Assets & FM, $55.7, 6.8% Information Systems & Solutions, $21.7, 2.6% Parks and Open Space, $96.0, 11.7% Oakville Fire Department, $30.9, 3.8% Highlights of the 20092018 Capital Forecast are shown in the next table which identifies the 15 highest dollar value projects. These projects represent 46% of the total capital budget. Detailed project information included in the 10 Year forecast has been provided in the following sections of this book divided by program.

Top 15 Highest Dollar Projects (in Millions) Project Description Years 20092018 Budget 53330901 Hot Mix Paving Program 200918 $ 48.4 53311101 Wyecroft Rd RRL Lands to Bronte Rd 201215 46.8 54200704 Transit Facility Expansion 201214 40.6 46310804 Quad Pad Arena (Design/Build) 200910 33.5 53310703 Kerr St Widening & Grade Separation 2009/10, 201618 30.3 54410903 Replacement Buses 200918 27.0 42100811 Municipal Building Replacement 200918 26.1 46600702 QEP Centre Design and Development 200911 23.0 54411201 Expansion Buses 201218 21.0 53311203 6th Line Dundas to New Burnhamthorpe 201318 15.6 46601501 Cultural Facility and Gallery 201517 15.0 53310608 Mid Town & QEW Crossing 200911 13.4 53511701 Parking Garage Land & Construction 201718 12.5 71101507 New Branch LibraryNorth 201517 11.4 53311206 Speers Rd 3rd Line to 4th Line 201213 10.7 Total $ 375.3 resources include transfers from reserves and reserve funds consisting primarily from equipment reserves and the general capital reserve totaling $131 million (16%) and Local Infrastructure Funding at $68 million (8%). These resources are used primarily to finance Infrastructure Renewal projects and the benefit to existing portions of the Growth program. External financing sources include Gas Tax Funding which accounts for $78 million (10%) and Other Revenue at $9 million (1%). Gas Tax funding has been directed in most part to the Transit and Road Infrastructure programs, as the intent of this funding is to promote cleaner air, cleaner water or reduce green house gas emissions. 20092018 CAPITAL FORECAST BY FUNDING SOURCES $ 822.6 Million Gas Tax, $79.7, 10% Financing of the Capital Forecast is provided by several different funding sources. As shown in this next chart the largest source of financing is Development Charges, which accounts for 42% of the total funding at $339 million, which is expected considering the large portion of the budget that is related to Growth. The next largest source is the contribution from the Operating Budget (Capital Levy) totaling $168 million or 20% of overall funding. Additional Corporate Contribution from Operating, $168.4, 20% Other Revenue, $9.4, 1% Local Infrastructure Funding, $67.8, 8% Reserves and Reserve Funds, $130.9, 16% Development Charges, $338.5, 42% Debentures, $28.0, 3%

Finally, Debt financing is proposed at $28 million or 3%, although it should be noted that this does not include the $43 million recently approved by council to interim finance the Quad Pad in North Park in lieu of development charge revenues. The above graph depicts the Quad Pad financed from development charges as if they were available in the year required. It is anticipated that the $43 million debt will be issued in the fall of 2009 or early 2010 to be repaid from development charges over 10 years. This graph illustrates that 60% of the Capital Forecast is currently driven by Growth, where 40% has been dedicated toward Infrastructure renewal. The following two tables identify the Growth and Non Growth components of the budget by Department and financing source. Overview of Growth and Nongrowth Capital The growth and nongrowth share is best summarized in the next pie graph. 20092018 CAPITAL FORECAST Growth vs NonGrowth NonGrowth, $328.8M, 40% Growth, $493.5M, 60%

Town of Oakville 2009 2018 CAPITAL FORECAST Growth Program Summary by Department and Financing Sources 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast PROGRAM GROSS COST General Government 150,000 150,000 300,000 Capital Assets 1,500,000 2,500,000 2,500,000 3,500,000 2,900,000 2,900,000 2,900,000 4,400,000 1,500,000 1,500,000 26,100,000 Information Systems & Solutions Parks and Open Space 4,992,000 4,003,300 463,300 2,990,700 1,331,000 2,800,000 1,799,200 341,200 852,800 789,000 20,362,500 Oakville Fire Department 725,000 25,000 25,000 1,025,000 2,025,000 3,258,600 25,000 25,000 845,000 5,225,000 13,203,600 Recreation and Culture 23,975,000 25,300,000 7,400,000 75,000 56,750,000 Oakville Public Library 55,000 955,000 55,000 105,000 55,000 25,000 1,110,100 5,000,000 5,320,000 8,950,000 21,630,100 Oakville Galleries Roads & Works 319,000 585,000 503,000 3,000,000 3,216,000 2,965,000 903,000 3,205,000 615,000 740,000 16,051,000 Engineering and Construction 15,242,000 21,360,000 21,245,000 22,471,000 22,995,000 40,187,000 33,765,000 15,142,000 30,000,000 38,390,000 260,797,000 Oakville Transit 5,660,000 75,000 40,000 16,220,000 18,270,000 13,750,000 4,135,000 4,000,000 4,150,000 6,500,000 72,800,000 Environmental Policy Building Services Planning Services 1,738,400 683,400 583,400 383,400 583,400 700,000 100,000 300,000 100,000 300,000 5,472,000 Development Services 50,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 370,000 Total Department/Project $ 54,256,400 $ 55,526,700 $ 32,854,700 $ 49,885,100 $ 51,415,400 $ 66,625,600 $ 44,777,300 $ 32,528,200 $ 43,572,800 $ 62,394,000 $ 493,836,200 FUNDING SOURCES Operating Reserves Equipment Reserves 2,000,000 1,000,000 1,100,000 1,050,000 300,000 300,000 450,000 6,200,000 Capital Reserves 4,250,000 4,253,000 1,380,000 9,883,000 Corporate Reserves Discretionary RF Obligatory RF Gas Tax RF 1,683,700 565,000 1,901,000 8,215,500 6,823,400 3,518,000 1,281,500 1,865,000 3,758,400 4,961,400 34,572,900 DC Reserve Funds 37,098,400 42,891,500 23,692,800 26,814,600 24,686,200 47,143,500 36,955,800 21,786,100 32,540,200 44,888,800 338,497,900 Debentures 738,000 5,849,200 7,189,600 4,191,500 600,000 650,000 19,218,300 Local Infrastructure Funding* 145,000 827,100 217,900 1,170,200 500,000 2,860,200 Other Revenue 4,056,700 1,054,120 1,181,250 2,101,250 8,393,320 General Capital Reserve 2,671,900 2,526,180 921,200 797,500 607,400 1,261,600 186,100 824,100 213,300 2,578,900 12,588,180 Contribution from Operating 1,612,700 3,409,800 4,741,800 8,208,300 11,108,800 9,411,000 5,303,900 6,582,800 4,979,650 6,263,650 61,622,400 TOTAL FUNDING SOURCES $ 54,256,400 $ 55,526,700 $ 32,854,700 $ 49,885,100 $ 51,415,400 $ 66,625,600 $ 44,777,300 $ 32,528,200 $ 43,572,800 $ 62,394,000 $ 493,836,200

Town of Oakville 2009 2018 CAPITAL FORECAST NonGrowth Program Summary by Department and Financing Sources 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast PROGRAM GROSS COST General Government 300,000 200,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,700,000 Capital Assets 3,689,500 4,690,000 2,502,000 1,729,500 2,302,500 2,243,500 4,326,100 3,233,600 2,288,300 2,600,800 29,605,800 Information Systems & Solutions 2,085,000 2,005,000 2,170,000 1,700,000 2,205,000 2,885,000 2,300,000 2,210,000 1,435,000 2,675,000 21,670,000 Parks and Open Space 5,686,500 8,292,600 12,910,500 7,708,800 6,893,300 9,353,900 5,734,500 7,377,400 5,707,300 5,944,200 75,609,000 Oakville Fire Department 335,000 1,205,000 1,670,000 1,860,000 2,275,000 3,940,000 1,475,000 1,990,000 1,985,000 955,000 17,690,000 Recreation and Culturet 1,530,500 1,109,100 1,746,500 1,248,600 3,825,500 1,092,900 5,954,500 5,793,000 6,911,000 751,000 29,962,600 Oakville Public Library 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 3,853,100 50,000 4,303,100 Oakville Galleries 72,200 72,200 72,200 72,200 72,200 72,200 72,200 72,200 72,200 60,100 709,900 Roads & Works 954,000 1,283,000 1,683,000 1,433,000 1,486,000 1,816,000 1,816,000 1,843,000 1,712,000 1,717,000 15,743,000 Engineering and Construction 11,372,000 6,398,600 8,444,600 8,561,200 9,180,000 8,335,000 9,110,500 9,489,000 10,019,000 10,896,000 91,805,900 Oakville Transit 4,066,600 4,495,000 2,835,000 4,314,000 5,006,000 3,775,000 4,065,000 3,875,000 3,255,000 3,865,000 39,551,600 Environmental Policy 50,000 50,000 50,000 20,000 50,000 100,000 20,000 340,000 Building Services Planning Services 15,000 10,000 10,000 10,000 45,000 Development Services Total Department/Project $ 30,206,300 $ 29,850,500 $ 34,283,800 $ 28,827,300 $ 33,475,500 $ 33,763,500 $ 35,163,800 $ 36,083,200 $ 37,397,900 $ 29,684,100 $ 328,735,900 FUNDING SOURCES Operating Reserves Equipment Reserves 2,041,100 4,554,130 4,604,600 5,406,800 5,690,300 5,116,100 4,964,000 5,200,000 5,327,900 4,773,800 47,678,730 Capital Reserves 2,314,300 678,000 781,500 808,300 896,400 386,900 484,000 281,000 140,000 260,000 7,030,400 Corporate Reserves Discretionary RF 1,278,100 440,000 500,000 500,000 500,000 600,000 600,000 650,000 650,000 835,000 6,553,100 Obligatory RF 558,900 2,032,470 2,268,900 2,044,000 1,332,000 784,800 1,165,500 1,058,400 891,900 1,058,400 13,195,270 Gas Tax RF 6,893,000 3,595,000 3,872,500 4,314,000 4,256,000 5,588,000 4,755,000 4,650,000 4,125,000 3,030,000 45,078,500 DC Reserve Funds Debentures 1,415,000 2,000,000 1,675,900 900,000 2,750,000 8,740,900 Local Infrastructure Funding* 3,571,100 3,620,100 6,902,100 4,202,500 9,550,000 7,879,900 8,546,800 8,119,300 9,925,100 2,575,000 64,891,900 Other Revenue 536,500 118,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 1,038,500 General Capital Reserve 1,856,600 3,715,800 3,707,200 3,425,200 2,100,000 2,720,000 3,375,000 1,965,000 3,190,000 1,725,000 27,779,800 Contribution from Operating 9,741,700 9,097,000 9,923,100 8,078,500 8,202,800 7,889,800 11,225,500 14,111,500 13,100,000 15,378,900 106,748,800 TOTAL FUNDING SOURCES $ 30,206,300 $ 29,850,500 $ 34,283,800 $ 28,827,300 $ 33,475,500 $ 33,763,500 $ 35,163,800 $ 36,083,200 $ 37,397,900 $ 29,684,100 $ 328,735,900

Growth Related Capital The Growth capital requirements account for $494 million of the total capital budget. These are projects required as a result of growth and consist of various services and programs such as new Recreation, Fire and Library Facilities, Transit Buses, New Parks, and additional Road Infrastructure. In addition, other projects have been categorized as growth as they are driven by the expanding community even though ineligible for development charges. One example would be the Town Hall expansion or the Cultural Facility. The above growth forecast has been developed in conjunction with the Development Charges (DC) study that is currently underway and due to be approved by council summer 2009. Each program s budget has been prepared to optimize the maximum allowable services levels affordable through preliminary development charge rates and population growth estimates determined in the study. As a result of the DC study several programs identified new projects in the later years of the forecast that will be required to enhance service as the Town grows. For example, Fire, Library and Roads & Works programs have increased from the forecast presented in the 2008 Budget Forecast. In addition, the Road Infrastructure program has increased primarily due to revised cost estimates used to calculate development charges as well as the introduction of new road development. Other program areas were reduced or financed by non DC sources. For example, based on historic service levels the DC study has shown that the Parks & Recreation program currently has excess capacity as defined in the Development Charge legislation, therefore respective budgets have been reduced and several projects were deferred to the next 10 year period. Similarly, the Transit program greatly exceeds the maximum allowable based on the 10 year average service level cap as per the DC legislation. Thus the program has been scaled back from the program presented in the Transit Master plan as the new Transit Facility can not be constructed until 2012/2013 based on available funding. Where possible Gas Tax funding and Equipment reserves have been used to supplement DC s in order to continue with a phased implementation of the new Transit Service Delivery model. Growth projects are primarily funded by Town wide Development Charges with the balance of funding from reserves and reserve funds, gas tax funds, other revenue and debt. These alternative financing sources have been used to fund the Town s 10% share required for soft services, benefit to existing residents (i.e. renovation of QE Park school), projects in the 10 Year program that are over the maximum allowable service level and projects growth related but ineligible for DC s.

Therefore as illustrated in the following graph 69% of the 10 year growth program is currently funded from Development Charges. Gas Tax RF 7.0% Equipment/Other Capital Reserves 3.3% 20092018 GROWTH CAPITAL FUNDING SOURCES $ 493.5 Million Debentures 3.9% Local Infrastructure Funding* Other Revenue 0.6% 1.7% General Capital Reserve/Operating Contribution 15.0% implementation of capital asset accounting and asset management tracking, better information will be available to assist staff in further analyzing the Town s infrastructure renewal needs and incorporating them into the forecast and aligning the financing requirements. Nongrowth projects are funded from reserve and reserve fund contributions, property tax via the capital levy or the issuing of debentures. 20092018 NONGROWTH CAPITAL FUNDING SOURCES $ 328.8 Million Equipment Reserves 14.5% Contribution from Operating 32.5% Capital Reserves 2.1% DC Reserve Funds 68.5% Other RF 6.0% NonGrowth Related Capital Gas Tax RF 13.7% The nongrowth capital budget accounts $329 million of the total capital budget. These projects represent the Infrastructure renewal needs of the Town and consist predominantly of maintenance activities and refurbishment of existing infrastructure. Currently, much of the Town s building infrastructure is fairly new, as these facilities age we will see an increased need to invest in maintenance and refurbishment activities. General Capital Reserve 8.5% Other Revenue 0.3% Local Infrastructure Funding* Debentures 2.7% Various studies and financial models have been utilized to determine the timing of this type of expenditures. However, with the current

Capital Forecast Financial Affordability The 20092018 Capital Forecast incorporates the issuance of a total of $87.5 million in debenture financing. In addition to the $28 million in new tax supported debt required to fund the capital forecast, this includes the $43 million approved to interim finance the Quad Pad in North Park and the $9.5 million to be issued for Pine Glen to be repaid by the Soccer Club as well as debt approved in previous budgets but not yet issued. The following chart shows the total outstanding debt principle by program over the 10 Years. In terms of debt repayment, debt charges will increase from $7.3 million in 2009 peaking at $14.7 million by 2014. The following chart shows projected debt charges by program over the 10 year period. Millions $16.0 $14.0 $12.0 20092018 Total Projected Debt Charges Millions $90 Total 20092018 Outstanding Debt by Program $10.0 $8.0 $6.0 $80 $4.0 $70 $2.0 $60 $50 $0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tax Supported Hydro Repayment Harbours Parking Pine Glen Joshua Creek Quad Pad $40 $30 $20 $10 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tax Supported Debt Transit Harbours Parking Pine Glen Josuha Creek Quad Pad Although, these debt charges are higher than previous years they are affordable in terms of the Provincial Legislative level of 25 % of owned revenues. However, total debt charges including debt issued on behalf of development or outside sources is above the Town s current policy of 6.25%. A new debt policy which incorporates debt to support Growth and other initiatives with external revenues sources will be

presented at the Budget Committee Meeting on May 28th. The next graph illustrates debt charges as a percent of Town owned revenues. The first line represents debt charges that are solely the Town responsibility to be paid by property taxes. The green line represents the current approved policy of 6.25% and the third line is total projected debt charges included debt to be repaid by external sources such as development charges and self supporting programs such as Harbours. Another indication of the affordability of debt is a measurement of total debt principal to reserve balances. Financial institutions consider a prudent debt financing practice of a 1:1 ratio of debt to reserves as a policy. The current debt forecast is within this limit. The following graph illustrates this point. 12.0% Total Debt Charges as a % of Town Owened Revenues 100% 90% 20092018 Projected Outstanding Debt to Reserves 10.0% 80% 8.0% 70% 60% 6.0% 50% 40% 4.0% 30% 2.0% 20% 10% 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Debt / Reserves Tax Supported Debt / Reserves Total Tax Supported Debt Total Incl. DC & Other Debt Tax Supported Debt Limit

Capital Impact on Operating Budget The 20092018 Capital Forecast will have a significant impact on the Operating budget over the next 10 years. Highlights include: Opening of the Quad Pad in 2010/2011 QE Park Renovation complete in 2011/2012, New Fire Station 2012/2013 North Operations Yard in 2012/2013, New Transit Facility in 2014/2015 Transit Bus Expansion/Service Delivery 2013 2018 New Library Branch in 2018 The following graph illustrates the projected incremental impact on the operating budget from the capital forecast by program. 20092018 Capital Impact on Operating by Department 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 (500,000) 2010 2011 2012 2013 2014 2015 2016 2017 2018 Capital Assets IS & S Fire Department Recreation and Culture Parks and Open Space Library Roads & Works Engineering and Construction Oakville Transit