russell financial plan€¦ · wsp is pleased to submit our final report for the russell water and...

TOWNSHIP OF RUSSELL

RUSSELL WATER AND WASTEWATER FINANCIAL PLAN

APRIL 2015

Russell Financial Plan WSP Township of Russell No 141-21928-00

Final Report Project No: 141-21928-00

Date: May 2015

– WSP Canada Inc. 600 Cochrane Drive, 5th Floor Markham, ON L3R 5K3

Phone: +1 905-475-8727 www.wspgroup.com

RUSSELL WATER AND WASTEWATER FINANCIAL PLAN

Township of Russell

May 11, 2015

Mr. Craig Cullen Director of Environmental Services and Public Works Township of Russell 851 Route 400 Embrun, ON K4R 1E5

Subject: Russell Water and Wastewater Financial Plan for MDWL #184-101Final Report

Dear Mr. Cullen:

WSP is pleased to submit our final report for the Russell Water and Wastewater Financial Plan. This report is to support MDWL #184-101.

We look forward to the Township’s comments.

Yours truly,

Gustavo Arvizu, P. Eng., M. Eng. Project Manager

WSP Canada Inc. 600 Cochrane Drive, Suite 500 Markham, ON L3R 5K3

Phone: +1 905-475-8727 Fax: +1 905-475-5994 www.wspgroup.com

S I G N A T U R E S

PREPARED BY Gustavo Arvizu, P. Eng., M. Eng. Project Manager Beth Scott, B.Eng.

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TABLE OF CONTENTS 1 INTRODUCTION ............................................................................. 5

2 FINANCIAL PLAN REQUIREMENTS ............................................ 6

FINANCIAL PLAN REGULATION (O.REG. 453/07)............................................ 6 2.1

FINANCIAL PLAN GUIDELINE ............................................................................ 7 2.2

3 KEY INPUTS AND ASSUMPTIONS ............................................... 7

EXPENSES AND EXPENDITURES ..................................................................... 8 3.1

REVENUES ......................................................................................................... 13 3.2

EVALUATION OF FUNDING LEVELS ............................................................... 14 3.3

4 FINANCIAL PLAN ........................................................................ 16

STATEMENT OF OPERATIONS ........................................................................ 17 4.1

STATEMENT OF CASH FLOW .......................................................................... 17 4.2

STATEMENT OF FINANCIAL POSITION .......................................................... 17 4.3

5 CONCLUSIONS AND RECOMMENDATIONS ............................. 23

OVERVIEW OF PROPOSED FINANCIAL PLAN ............................................... 23 5.1

RECOMMENDATIONS AND NEXT STEPS ....................................................... 24 5.2

6 BIBLIOGRAPHY ........................................................................... 25


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T A B L E S TABLE 3-1 TOWNSHIP OF RUSSELL’S WATER AND WASTEWATER DEBTS ... 9 TABLE 3-2 ANNUAL WATER AND SEWER RATE INCREASES .......................... 14 TABLE 4-1 STATEMENT OF OPERATIONS .......................................................... 19 TABLE 4-2 STATEMENT OF CASH FLOW ............................................................ 20 TABLE 4-3 STATEMENT OF FINANCIAL POSITION ............................................ 22 TABLE 5-1 ANNUAL WATER AND SEWER RATE INCREASES .......................... 24

F I G U R E S FIGURE 3-1 PROJECTED OPERATING EXPENSES ................................................ 9 FIGURE 3-2 DEBT INTEREST EXPENSES ............................................................. 11 FIGURE 3-3 DEBT PRINCIPAL PAYMENTS ............................................................ 11 FIGURE 3-4 FUTURE CAPITAL EXPENDITURE ..................................................... 13 FIGURE 3-5 OPERATING CASH FLOW................................................................... 15 FIGURE 3-6 CAPITAL EXPENDITURE BALANCE ................................................... 16

A P P E N D I C E S APPENDIX A – Waterworks & Sewer Budget Projections

APPENDIX B – Debt Repayment Schedule

APPENDIX C – Annual Amortization

APPENDIX D – Water and Sewage Rate Calculation and Watson’s Peer Review Report

APPENDIX E – Water and Sewage Rate Presentation to Council – March 23, 2015

APPENDIX F – Financial Plan Statements

WSP Russell Financial Plan No 141-21928-00 Township of Russell

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1 INTRODUCTION The Township of Russell is a lower tier municipality within the United Counties of Prescott Russell, located South East of Ottawa. There are four urban communities within the Township’s boundaries: Embrun, Russell, Marionville and Limoges. The Township provides potable water servicing to 4,266 households and sanitary sewage services to 3,642 households.

As a result of the Justice O'Connor's Part II Walkerton Inquiry Report (2000) and the passing of Ontario’s Safe Drinking Water Act (2002) (SDWA), the Province of Ontario introduced the Municipal Drinking Water Licensing Program. To implement Justice O’Connor’s Walkerton Inquiry recommendations, the Ministry of Environment (MOE) developed the Financial Plan Regulation (O. Reg. 453/07) under the Safe Drinking Water Act (2002). Prior to issuing a drinking water licence under the SDWA, the Ministry requires that the following elements be in place:

A Drinking Water Works Permit - a permit to establish or alter a drinking-water system

An approved Operational Plan - in compliance with the Drinking Water Quality Management Standard (DWQMS)

Accreditation as an Operating Authority - which requires the auditing of the DWQMS Operational Plan by a third party Accreditation Body

An approved Financial Plan - as required under the Financial Plans Regulation (O. Reg. 453/07)

A Permit to Take Water (PTTW) - as mandated under the Ontario Water Resources Act

A Financial Plan is one of the elements that must be in place for a municipal drinking water licence to be issued. The Financial Plan Regulation (O. Reg. 453/07) requires a six year financial plan for municipal drinking water.

The water and sewer rates currently in force were established in By-Law 23-2010 (Township of Russell, 2010). The Township’s rate structure for water and sewage services includes an annual flat fee and a volumetric consumption charge.

In 2009, Hemson Consulting completed a water rate including a full cost recovery model. The study included a Full Cost of Services Report and a Cost Recovery Plan; the two reports required under the Sustainable Water and Sewage Systems Act. A population and household forecast was established, a capital replacement plan was developed and full cost recovery water rates were determined for 2010 to 2019. The recommended water rates included the fixed rate, volumetric rate and fire protection. The fixed rate was recommended to increase from $427 in 2010 to $536 in 2019, the volumetric rate was recommended to increase from $1.50/m³ in 2010 to $2.22/m³ in 2019, and lastly the fire protection rate was recommended to increase from $40 in 2010 to $47.80 in 2019. However, despite Hemson’s recommendations, the rates have not been increased since 2010.

In 2010, Hemson Consulting completed a financial plan for the Township’s drinking water system. The plan was based on the Township achieving full cost recovery of the water services as determined through the 2009 water rate study. The financial plan forecasted an annual surplus for each of the 10 years projected, allowing the Township to grow its reserves to fund the replacement of its assets. However, the plan anticipated that new debt would need to be issued to support the Township’s growth related capital requirements. The Township’s reserve funds were expected to increase from approximately $1.4 million in 2010 to $10.1 million by 2019.


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In 2013, the Township retained Public Sector Digest to develop an Asset Management Plan (AMP) for the Town’s water, wastewater, stormwater, roads and bridge infrastructure (Public Sector Digest, 2013). The AMP compared current revenue levels to expenditure requirements and indicated that there is currently a deficit in funding for the water and wastewater services. The capital expenditure requirements for the water and wastewater systems were defined based on information in the Township’s PSAB information, and condition ratings were defined based on the age of the infrastructure relative to its expected service life. The AMP recommended sewer rate increases of 1.8% per year for 10 years and water rate increases of 5.1% per year for 10 years. The AMP also indicated that debt cost reductions in the sanitary services budget would be needed to achieve full funding.

In 2014, WSP was retained by the Township of Russell to prepare a Financial Plan for its drinking water and wastewater systems for the 2015 to 2024 planning horizon. This involved a review of the water and sewer use rates. The water system component of this Financial Plan fulfills the requirements set in the Financial Plan Regulation (O. Reg. 453/07) under the Safe Drinking Water Act (2002), allowing the Township to renew its Municipal Drinking Water License. This Financial Plan also establishes a 10-year plan to achieve full cost recovery while ensuring adequate reserves are available to fund infrastructure replacement requirements for the Township’s water and wastewater systems.

2 FINANCIAL PLAN REQUIREMENTS FINANCIAL PLAN REGULATION (O.REG. 453/07) 2.1

The following general requirements are outlined in O. Reg. 453/07:

Approval: The Financial Plan must be approved by a council resolution that indicates that the drinking water system is financially viable.

Declaration: The Financial Plan must include a statement that the financial impacts of the drinking water system have been considered.

Projection Length: The Financial Plan shall be for a period of at least six years.

Public Transparency: The Financial Plan must be made available, on request and without charge, to the members of the public that are served by the water system. If the system owner maintains a website, then the Financial Plan must be made available on the website without charge. The owner must provide a notice informing the public of the availability of the Financial Plan, in a manner that the Owner deems fit to bring the notice to the attention of the members of the public that are served by the water system.

Submission: A copy of the Financial Plan, along with the resolution must be submitted to the Ministry of Municipal Affairs and Housing.

Update: The Financial Plan should be updated and approved prior to applying for a licence renewal (i.e. every five years). However, the Regulation does not prevent the Plan from being amended more regularly.

2.1.1 FINANCIAL STATEMENTS

In addition to the above requirements, the Regulation requires owners of drinking water systems to develop three specific statements: the Statement of Operations, the Statement of Financial Position and the Statement of Cash Flow. These are the key components of the Financial Plan. A brief overview is provided below. The following sections of the document describe the inputs, assumptions and approach used to develop these statements for the Township of Russell’s Water and Wastewater Systems.


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STATEMENT OF OPERATIONS

This statement summarizes the revenues and expenses generated by the water and wastewater system for a given period. It lists the total revenues, total expenses (including operating, amortization and interest on debt), annual surplus/deficit and the cumulative annual surplus/deficit. The Statement of Operations does not include costs related to capital transactions and principal debt payments.

A surplus in the Statement of Operations indicates that funds are available to the municipality to finance non-operating expenditures such as acquisition of tangible capital assets, principal payments on debt, and transfers to capital replacement reserves.

The Statement of Operations for the Township of Russell’s Water and Wastewater Systems is included in Table 4-1.

STATEMENT OF CASH FLOW

This statement summarizes how the water and wastewater system is expected to generate and use cash resources during the planning period. Details are itemized by operating transactions, capital transactions and financial transactions. Unlike the Statement of Operations, the Statement of Cash Flow does not include amortization expenses (since these are non-cash expenses).

The Statement of Cash Flow for the Township of Russell’s Water and Wastewater Systems is included in Table 4-2.

STATEMENT OF FINANCIAL POSITION

This statement lists the total financial assets, tangible capital assets and total liabilities for a given period. A positive or net financial asset position is an indication that the municipality has sufficient financial resources to fund its future operations and the future repair and replacement of its assets.

The Statement of Financial Position for the Township of Russell’s Water and Wastewater Systems is included in Table 4-3.

FINANCIAL PLAN GUIDELINE 2.2

To assist municipalities in preparing their Financial Plan under O. Reg. 453/07, the Ministry of Environment released a document titled “Toward Financially Sustainable Drinking-Water and Wastewater Systems” (Ministry of the Environment, 2007). This document applies to financial planning for wastewater systems as well. However, Financial Plans for wastewater systems are only encouraged and not mandatory under the regulation.

The approach and principles outlined in the MOE’s document were used to develop this Financial Plan.

3 KEY INPUTS AND ASSUMPTIONS Data from the Town’s 2013 and 2014 Financial Information Return as well as information from the Township’s water and wastewater budgets was used to develop the financial statements which are the key components of this Financial Plan. This Plan covers the 2015 to 2020 planning scenario.


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Key inputs to the plan are the expenditures and revenues related to the operation of the water and wastewater systems. A discussion on the assumptions made when forecasts expenditures and revenues follows.

EXPENSES AND EXPENDITURES 3.1

3.1.1 OPERATING EXPENSES

Operating expenses refer to those needed to keep the operation running on a day-to-day basis. Operating expenses typically include wages, benefits, materials, supplies, maintenance, pagers, equipment fuel, utilities, mileage, etc.

It should be noted that the Township receives water supply from the City of Ottawa and pays a charge per unit volume to the City.

Current period operating expenses were obtained from the Township’s 2015 budget, which also included expense details for the years 2012 to 2014. The breakdown of operating expenses for 2012 to 2015 is provided in Appendix A. It should be noted that the Township’s operating budget included debt repayment amounts and contributions to asset reserves. For the purposes of this Financial Plan, these items are considered non-operating expenditures, and they are addressed separately in this Financial Plan.

Future period operating expenses were projected based on the following assumptions:

1. There would be growth of 155 new units per annum based on the Official Plan, the Development Charges Background Study and information provided by the Township’s Planning Department. This growth will result in an increase to the demands/flows and the operating costs. However, this growth would also result in increases in revenue.

2. All operating expenses were assumed to increase by 2% per annum with the exception of the Ottawa supply charge which was assumed to increase by 6% per annum.

The projected operating expenses are shown in Figure 3-1. Operating expenses are projected to increase from $3,890,080 in 2015 to $8,897,434 in 2030.


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Figure 3-1 Projected Operating Expenses

Current and forecasted operating expenses are reported in the Statement of Operations and in the Statement of Cash Flow.

3.1.2 DEBT REPAYMENT

The Township of Russell currently has five external loans which are used to fund water and wastewater infrastructure projects. Details of the loans including the annual principal and interest payments are provided in Appendix B. A summary of the loans is provided below in Table 3-1.

Table 3-1 Township of Russell’s Water and Wastewater Debts

LOAN AREA REMAINING BALANCE (AS OF DECEMBER 31,

2014)

ANNUAL PAYMENT (PRINCIPAL & INTEREST)

LAST PAYMENT

Ottawa Supply Water $13,214,124.73 $891,177 2041

Embrun Reservoir Water $2,520,719.94 $241,044 2027

Russell Lagoon Sanitary $307,962.84 $106,387 2017

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$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

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LOAN AREA REMAINING BALANCE (AS OF DECEMBER 31,

2014)

ANNUAL PAYMENT (PRINCIPAL & INTEREST)

LAST PAYMENT

Sewer Station 7 Sanitary $87,531.89 $87,532 2015

Russell Pumping Station Sanitary *$297,594 *$106,387 2017

Embrun Lagoon Expansion Sanitary *$443,331 *$53,194 2023

*Based on the Township’s 2015 budget (See Appendix A).

The Township pays fixed debt payments each year for each loan. The payments include a portion of the principal plus an interest expense. The interest portion of the annual fixed debt repayment for each loan decreases with time as the debt is paid off and the balance decreases. The principal portion of the annual fixed debt repayment for each loan also varies with time. The future annual interest and principal expenses corresponding to all loans are shown in Figure 3-2 and Figure 3-3 below. As noted above, it is expected the existing debt would be entirely paid by 2041.

It is assumed that no new debt would be incurred over the planning period to 2030 for non-growth related water and wastewater expenditures.

The interest expenses on debt payments are included in the Statement of Operations, while the debt principal repayment expenditures are listed in the Statement of Cash Flow.


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Figure 3-2 Debt Interest Expenses

Figure 3-3 Debt Principal Payments

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3.1.3 AMORTIZATION EXPENSES

Amortization (also referred to as depreciation) is a non-cash expense that represents the prorating of tangible capital assets (TCAs) over their life. Annual amortization expenses are based on the historical cost of assets, apportioned over the useful life of the asset using the straight-line depreciation method. The amortization amounts for each year over the planning horizon were calculated based on the asset inventory from the Township’s Citywide data. A summary of the Township’s water and wastewater infrastructure and the calculated annual amortization is provided in Appendix C.

A key assumption when estimating amortization is the asset’s life. The annual amortization expense for an asset is estimated (using the linear depreciation method) as the original cost of the asset divided by the asset’s expected life. The expected life of the Township’s assets as defined in the Citywide asset inventory was used to calculate amortization, without regards to other factors which may affect the condition and the life of these assets. Hence, it is likely that the “accounting life” of an asset, defined for the purposes of amortization, and the real remaining useful life of that asset would be different. However, for the purposes of this Financial Plan, the asset’s expected service life and the accounting life are assumed to be identical unless otherwise specified.

The Township’s water and wastewater asset annual amortization expenses slowly increase from $1,522,344 in 2015 to $1,721,209 in 2030. The annual variations in amortization expenses are due to the replacement of assets reaching the end of their service lives, and the fact that no amortization expense is reported the year an asset is replaced (i.e. an asset starts depreciating the year after it is constructed/installed).

3.1.4 CAPITAL EXPENDITURES

Future capital expenditures correspond to asset replacement costs. These and the related asset replacement schedules were based on the findings of the Water and Wastewater System Condition Assessment (WSP, 2015). Capital expenditures related to the construction of new infrastructure or related to the expansion of existing infrastructure to service growth in the community were not considered. It is intended that infrastructure required for growth be financed through development charges, and would thus not need to be funded by the Township’s water and wastewater rates.

The annual capital expenditures recommended in the Water and Wastewater System Condition Assessment during the planning horizon are shown below in Figure 3-4. The average annual capital expenditure requirements between 2015 and 2030 for water and wastewater are $645,444. It is noted that large expenditures are planned in 2024, 2026 and 2029. It is recommended that whenever possible, such large expenditures be phased over a period of several years to reduce their impact on the Township’s reserves.


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Figure 3-4 Future Capital Expenditure

Capital expenditures are reported in the Statement of Cash Flow and are also used to determine the value of the Township’s tangible capital assets included in the Statement of Financial Position (i.e. it is assumed that capital expenditures would increase the value of the Township’s assets).

REVENUES 3.2

3.2.1 WATER AND SEWER RATE REVIEW

Water and wastewater rates represent the main source of revenue to fund the Township’s water and wastewater operations. The Township’s rate by-law includes fees for water and sanitary services. The rate structure is based on a flat or fixed rate and a variable rate based on water consumption. Other sources of revenue for the Township include fire protection fees, service request fees, connection permits, sale of water meters, and telecom rental of the water tower.

In 2014, the Township retained WSP to conduct a review of the Township’s water and sewer use rates. WSP developed a new rate structure generally based on the recommendations from Hemson’s 2010 study, but incorporating the latest information on the Township’s operating expenses and debentures, and also in consideration of needs identified in the condition assessment report also completed by WSP (WSP, 2015).

As part of the rate review, the effect of using different capital asset replacement estimates was assessed. Three options were considered: a) Hemson’s Approach - assuming a constant annual expenditure ($900,000 for water assets and $800,000 for wastewater assets), b) Amortization Approach – assuming the annual amortization amounts would equal the capital replacement requirements, and c) Condition Assessment Approach – using the capital replacement needs identified in the condition assessment completed by WSP. This evaluation can be found in Appendix D. Approach C was recommended as it corresponds more realistically to the actual asset replacement needs.

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The Township also retained Watson & Associates Economists Ltd. to complete a peer review of the rate analysis completed by WSP (Watson & Associates, 2015). Watson’s conducted an independent review and obtained virtually identical results for the water and sewage rates. WSP then presented the recommendations at a Council meeting on March 23, 2015. Council approved the recommended rate projections and the corresponding 20 year financial plan. The presentation given to Council on the proposed rates is included in Appendix E.

The water and sewer rates endorsed by Council are summarized below in Table 3-2, including the annual percent increase for each rate.

Table 3-2 Annual Water and Sewer Rate Increases

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Water Flat Rate - Adjusted

$427.00 $419.00 $411.00 $402.00 $389.00 $380.00 $371.00 $364.00 $356.00 $350.00 $343.00

Water Variable Rate

$295.68 $369.29 $391.45 $414.93 $439.83 $466.22 $494.19 $523.84 $555.27 $588.59 $623.91

Total Sewer Rate - Adjusted

$376.14 $353.00 $350.00 $340.00 $307.00 $302.00 $296.00 $292.00 $287.00 $283.00 $280.00

Change in Flat Rate - Adjusted

-2% -2% -2% -3% -2% -2% -2% -2% -2% -2%

Change in Variable Rate

25% 6% 6% 6% 6% 6% 6% 6% 6% 6%

Change in Total Sewer Rate

-6% -1% -3% -10% -2% -2% -1% -2% -1% -1%

Change in Total W & WW Rates

4% 1% 0% -2% 1% 1% 2% 2% 2% 2%

As shown in Table 3-2, the flat water rate and the sewer rate both decrease annually, whereas the variable water rate increases annually. Overall, this results in a total annual water and wastewater rate increase with the exception of the years 2017 and 2018, as shown above.

The reason for the rate decrease is that with the forecasted growth in the community the costs would be divided by a larger number of residential units.

EVALUATION OF FUNDING LEVELS 3.3

3.3.1 OPERATING CASH FLOW

The operating cash flow formula is used to determine whether revenues are sufficient to cover cash expenses. The operating cash flow is defined as follows (Ministry of the Environment, 2007):


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𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝐶𝐶𝑂𝑂𝐶𝐶ℎ 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 = 𝑅𝑅𝑂𝑂𝑅𝑅𝑂𝑂𝑂𝑂𝑅𝑅𝑂𝑂𝐶𝐶 − 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝐸𝐸𝐸𝐸𝑂𝑂𝑂𝑂𝑂𝑂𝐶𝐶𝑂𝑂𝐶𝐶 − 𝐼𝐼𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝐶𝐶𝑂𝑂 𝐸𝐸𝐸𝐸𝑂𝑂𝑂𝑂𝑂𝑂𝐶𝐶𝑂𝑂𝐶𝐶

The term “interest expenses” refers to the interest on debt expenses as defined in Section 3.1.2.

The operating cash flow is a measure of whether existing revenues are sufficient to cover operating costs from a cash perspective. Amortization expenses are not included in the equation above since amortization expenses are non-cash expenses.

The operating cash flow, based on the recommended water and sewer rate increases (WSP, 2014) for the projection horizon is shown in Figure 3-5. The operating cash flow remains positive for the projection horizon.

Figure 3-5 Operating Cash Flow

3.3.2 CAPITAL EXPENDITURE BALANCE

The cash available for capital expenditures is referred to as the Capital Expenditure Balance. The Capital Expenditure Balance is determined using the following equation (Ministry of the Environment, 2007):

𝐶𝐶𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝐹𝐹 𝐸𝐸𝐸𝐸𝑂𝑂𝑂𝑂𝑂𝑂𝐸𝐸𝑂𝑂𝑂𝑂𝑅𝑅𝑂𝑂𝑂𝑂 𝐵𝐵𝑂𝑂𝐹𝐹𝑂𝑂𝑂𝑂𝐵𝐵𝑂𝑂 = 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝐶𝐶𝑂𝑂𝐶𝐶ℎ 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 + 𝑁𝑁𝑂𝑂𝐹𝐹 𝐷𝐷𝑂𝑂𝐷𝐷𝑂𝑂 − 𝐷𝐷𝑂𝑂𝐷𝐷𝑂𝑂 𝑅𝑅𝑂𝑂𝑂𝑂𝑂𝑂𝑅𝑅𝑅𝑅𝑂𝑂𝑂𝑂𝑂𝑂𝐶𝐶 + 𝑅𝑅𝑂𝑂𝐶𝐶𝑂𝑂𝑂𝑂𝑅𝑅𝑂𝑂 𝐹𝐹𝑅𝑅𝑂𝑂𝐸𝐸𝐶𝐶

The Operating Cash Flow is estimated as indicated above. Debt Repayments refer to debt principal payments as defined in Section 3.1.2.

For the purposes of this Financial Plan it has been assumed that there would be no new debt issuance over the planning period as capital expenses associated with the Township’s existing water and wastewater infrastructure would be funded using the Township’s water and wastewater reserves. As of the end of 2014, the Township’s reserve balance was $1,484,257. It has been assumed that these reserves are solely for

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the purpose replacement of water and wastewater infrastructure, and that the reserves do not include any capital raised through development charges.

Figure 3-6 shows a comparison of the amount of cash available for capital expenditures (i.e. the capital expenditure balance) and the amount of cash required for capital expenditures as recommended in the Water and Wastewater Systems Condition Assessment (WSP, 2015) and discussed in Section 3.1.4. Figure 3-6 shows that the Township would have sufficient cash available for the planned capital expenditures over the projection horizon.

Figure 3-6 Capital Expenditure Balance

3.3.3 DISCUSSION

Given that the operating cash flow and the capital expenditure balances both remain positive during the planning horizon, the recommended increases in revenue are considered adequate. It should be noted that there are many other possible rate increases that would achieve positive cash flow levels. However, the recommended values were selected since they are sufficient to adequately cover operating and capital expenses. Furthermore, as noted in Appendix A, the recommended rate increases would ensure the Township “breaks even” when considering operating expenses, debt repayment, and transfers to Asset Management reserves.

4 FINANCIAL PLAN This section presents the complete Financial Statements for the Town’s water and wastewater systems, including the Statement of Operations, Statement of Cash Flow and Statement of Financial Position. The three statements are based on the estimates and assumptions described in Section 3 of this report. When preparing these statements it was assumed that revenues would increase based on the rates evaluated and recommended in Section 3.2.

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Capital Expenditure Balance Planned Capital Expenditure


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For clarity the three statements included below span over a 10 year period. Statements including information for the entire projection horizon, i.e. to 2030, are included in Appendix F.

STATEMENT OF OPERATIONS 4.1

The Statement of Operations summarizes the revenues generated and the expenses incurred by the water and wastewater system for a given period. The annual surplus/deficit indicates whether the revenues generated are sufficient to cover the expenses incurred and in turn, whether the value of the Town’s net financial assets have been maintained or depleted.

The Statement of Operations for the first ten years in the planning horizon is provided in Table 4-1. The Statement of Operations for the entire projection horizon i.e. up to 2030 is included in Appendix F.

As shown in Table 4-1, there would be an annual deficit between 2015 and 2030. This would tend to indicate that the current revenue levels are insufficient to cover the expenses related to the operation and maintenance of existing water and wastewater assets. However, it should be noted that the amortization expenses in this statement can be misleading since amortization is a non-cash expense. As demonstrated in Section 0 using the Operating Cash Flow calculation, there is still sufficient cash to cover the operating and interest expenses during the whole planning period.

STATEMENT OF CASH FLOW 4.2

The Statement of Cash Flow illustrates how the water and wastewater systems are expected to generate and use cash resources during the planning period. It reports the change in cash in the period and how the municipality finances its activities and meets its cash requirements. The transactions that provide/use cash are classified as operating, capital, investing, and financing activities.

The Statement of Cash Flow for the first ten years is provided in Table 4-2. The Statement of Cash Flow for the entire projection horizon i.e. up to 2030 is included in Appendix F.

As show in Table 4-2 the Operating Cash Flow (Line 5) remains positive throughout the planning horizon. This indicates that the proposed increase in revenues (WSP, 2014) would be sufficient to ensure there is sufficient cash available to cover the operating expenses and to contribute to the capital replacement reserves. The Statement also shows (Line 13) that the reserve balance for capital asset replacement remains positive during the planning horizon despite being used to cover the planned capital expenditures as forecasted in the Water and Wastewater Systems Condition Assessment (WSP, 2015).

STATEMENT OF FINANCIAL POSITION 4.3

The Statement of Financial Position provides information on the assets and liabilities of the Town’s water and wastewater systems. Net financial assets/deficit is the difference between the value of the assets and liabilities. A position of net financial assets occurs when assets are greater than liabilities. This implies that the municipality has the financial resources required to fund its future operations. A net financial deficit indicates that future revenues will be required to pay for past transactions.

The Statement of Financial Position for the first ten years is shown in Table 4-3. The Statement of Financial Position for the entire projection horizon i.e. up to 2030 is included in Appendix F.

As of the end of 2015, the Township had $16,112,820 in liabilities related to various long term loans for water and wastewater infrastructure, while the total financial assets during the same year were $1,121,758. These result in a net financial deficit position of $14,991,062. Overall, debt is expected to decrease to $7,265,228 by 2030 as further debt payments are made.


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The Statement of Financial Position also lists non-financial assets, which include all tangible capital assets (TCA) and supply inventories. An increase in the TCA balance (Line 4) suggests that new assets have been acquired and a decrease in the balance indicates the disposal, write-down or use of assets. The Township’s TCA balance is expected to decrease from $65,623,389 in 2015 to $48,629,850 in 2030. This decrease is due to the amortization expenses exceeding the rate at which tangible capital assets are replaced/renewed over the planning horizon.


19 Table 4-1 Statement of Operations

LINE ITEM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

1 Revenues

a Rate Revenue $4,736,981 $4,965,946 $5,171,698 $5,270,142 $5,510,816 $5,758,940 $6,039,783 $6,325,834 $6,644,254 $6,980,750

b Other Revenues $437,630 $407,937 $415,906 $424,034 $432,325 $440,781 $449,407 $458,205 $467,179 $476,333

c Transfer from DC Reserve $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $508,397

e Total Revenues $5,736,202 $5,935,475 $6,149,195 $6,255,768 $6,504,732 $6,761,312 $7,050,781 $7,345,630 $7,673,024 $7,965,479

2 Expenses

a Operating $3,890,080 $4,044,078 $4,253,406 $4,483,285 $4,729,214 $4,992,364 $5,273,991 $5,575,440 $5,898,156 $6,243,684

b Amortization $1,522,344 $1,749,769 $1,742,404 $1,752,113 $1,738,356 $1,739,537 $1,779,577 $1,791,853 $1,793,188 $1,793,172

c Interest on Debt $727,277 $709,678 $689,230 $660,614 $640,650 $619,809 $598,052 $575,337 $551,621 $522,922

d Total Expenses $6,139,701 $6,503,525 $6,685,039 $6,896,012 $7,108,219 $7,351,710 $7,651,620 $7,942,631 $8,242,965 $8,559,778

3 Annual Surplus/(Deficit) ($403,499) ($568,051) ($535,884) ($640,244) ($603,488) ($590,398) ($600,839) ($597,001) ($569,940) ($594,298)

4 Accumulated Surplus/ (Deficit) $67,907,090 $67,503,591 $66,935,540 $66,399,697 $65,759,453 $65,155,965 $64,565,567 $63,964,728 $63,367,727 $62,797,787

5 Accumulated surplus, end of period $67,503,591 $66,935,540 $66,399,697 $65,759,453 $65,155,965 $64,565,567 $63,964,728 $63,367,727 $62,797,787 $62,203,488

Line 1: Includes a) rate revenue, b) other revenues, c) and d) development charges (DC) revenue; the sum of which is shown on Line 1e

Line 2: Includes a) operating, b) amortization and c) interest expenses; the sum of which is shown on Line 2d

Line 3: Annual Surplus (Deficit) = Revenues (Line 1) – Total Expenses (Line 2d)

Line 4: Accumulated surplus, beginning of period = Accumulated surplus, end of the previous period; For the first year i.e. 2015 it was calculated as the sum of the 2014 Fixed Assets i.e. $66,422,833 and the 2015 Opening Reserve Balance i.e. $1,484,257.

Line 5: Accumulated surplus, end of period = Accumulated surplus, beginning of period (Line 4) + Annual Surplus/Deficit (Line 3)


20 Table 4-2 Statement of Cash Flow

LINE ITEM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

OPERATING TRANSACTIONS

1 Revenues

a Rate Revenue $4,736,981 $4,965,946 $5,171,698 $5,270,142 $5,510,816 $5,758,940 $6,039,783 $6,325,834 $6,644,254 $6,980,750

b Other Revenues $437,630 $407,937 $415,906 $424,034 $432,325 $440,781 $449,407 $458,205 $467,179 $476,333

c Transfer from DC Reserve $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $508,397

d Total Revenues $5,736,202 $5,935,475 $6,149,195 $6,255,768 $6,504,732 $6,761,312 $7,050,781 $7,345,630 $7,673,024 $7,965,479

2 Operating Costs ($3,890,080) ($4,044,078) ($4,253,406) ($4,483,285) ($4,729,214) ($4,992,364) ($5,273,991) ($5,575,440) ($5,898,156) ($6,243,684)

3 Interest on Debt ($727,277) ($709,678) ($689,230) ($660,614) ($640,650) ($619,809) ($598,052) ($575,337) ($551,621) ($522,922)

4 Total Costs ($4,617,357) ($4,753,756) ($4,942,635) ($5,143,899) ($5,369,864) ($5,612,173) ($5,872,043) ($6,150,778) ($6,449,777) ($6,766,606)

5 Operating Transactions $1,118,845 $1,181,718 $1,206,560 $1,111,860 $1,134,868 $1,149,139 $1,178,379 $1,194,852 $1,223,247 $1,198,874

CAPITAL TRANSACTIONS

6 Acquisition of tangible capital assets ($722,900) ($280,000) ($254,000) ($84,500) ($124,000) ($71,500) ($484,500) ($357,000) ($312,000) ($1,454,100)

7 Cash applied to capital transactions ($722,900) ($280,000) ($254,000) ($84,500) ($124,000) ($71,500) ($484,500) ($357,000) ($312,000) ($1,454,100)

FINANCE TRANSACTIONS

8 Proceeds from debt issues $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

9 Debt Repayment ($758,444) ($688,511) ($708,959) ($524,802) ($544,766) ($565,606) ($587,363) ($610,078) ($633,795) ($609,300)

10 Cash applied to financing transactions ($758,444) ($688,511) ($708,959) ($524,802) ($544,766) ($565,606) ($587,363) ($610,078) ($633,795) ($609,300)


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LINE ITEM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

11 Increase/(decrease) in cash and cash equivalents ($362,499) $213,208 $243,601 $502,567 $466,102 $512,033 $106,875 $227,774 $277,453 ($864,526)

12 Cash and cash equivalents, beginning of period $1,484,257 $1,121,758 $1,334,966 $1,578,567 $2,081,134 $2,547,236 $3,059,269 $3,166,144 $3,393,918 $3,671,371

13 Cash and cash equivalents, end of period $1,121,758 $1,334,966 $1,578,567 $2,081,134 $2,547,236 $3,059,269 $3,166,144 $3,393,918 $3,671,371 $2,806,845

14 Cash as percentage of net fixed assets 1.7% 2.1% 2.5% 3.4% 4.3% 5.3% 5.6% 6.2% 6.9% 5.3%

Line 1: Includes a) rate revenue, b) other revenues and c) development charges (DC) revenue; the sum of which is shown on Line 1d

Line 2: Operating expenses inflated at 2% per year and Ottawa supply charge at 6% per year.

Line 3: Total annual interest payments for the three water and wastewater loans.

Line 4: Total costs = Line 2 + Line 3

Line 5: Operating transactions is the operating cash flow i.e. Line 1 + Line 4

Line 6: The value of the assets acquired

Line 7: Cash used for capital expenditures

Line 8: Proceed from debt is the loan amount

Line 9: Principal payments on debt

Line 10: Cash applied to financing transactions = Line 8 + Line 9

Line 11: Increase (Decrease) in cash = Line 5 + Line 7 + Line 10

Line12: Cash beginning of period is the reserve fund balance

Line 13: Cash end of period = Line 11 + Line 12

Line 14: Cash as % net fixed assets = Line 13 / fixed assets for that year


22 Table 4-3 Statement of Financial Position

LINE ITEM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

FINANCIAL ASSETS 1 Cash $1,121,758 $1,334,966 $1,578,567 $2,081,134 $2,547,236 $3,059,269 $3,166,144 $3,393,918 $3,671,371 $2,806,845

LIABILITIES

2 Debt $16,112,820 $15,424,310 $14,715,350 $14,190,548 $13,645,782 $13,080,176 $12,492,813 $11,882,735 $11,248,940 $10,639,641

3 Net Financial Assets (Debt) $16,112,820 $15,424,310 $14,715,350 $14,190,548 $13,645,782 $13,080,176 $12,492,813 $11,882,735 $11,248,940 $10,639,641

NON-FINANCIAL ASSETS

4 Tangible Capital Assets 65,623,389 64,153,620 62,665,216 60,997,603 59,383,247 57,715,210 56,420,133 54,985,279 53,504,092 53,165,020

Line 1: Cash is the reserve fund balance at the end of the year, similar to Line 13 in the Statement of Cash Flow

Line 2: The remaining debt is the total loan minus any loan payments

Line 3: Net financial assets (debt) = Line 1 – Line 2

Line 4: Tangible capital assets are non-financial assets calculated as follows: Previous period fixed assets – amortization costs + capital expenditure.


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5 CONCLUSIONS AND RECOMMENDATIONS

OVERVIEW OF PROPOSED FINANCIAL PLAN 5.1

A Financial Plan is one of the elements required by the Ministry of Environment (MOE) for a municipal drinking water licence to be issued. This Financial Plan fulfills the requirements set in the Financial Plan Regulation (O. Reg. 453/07) under the Safe Drinking Water Act (2002), allowing the Township to renew its Municipal Drinking Water License. This Financial Plan also establishes a plan from 2015 to 2030 to achieve full cost recovery while ensuring adequate reserves are available to fund infrastructure replacement requirements for the Township’s water and wastewater systems.

Operating and capital costs associated with population growth were not considered in this Financial Plan as it is intended that infrastructure required for growth be financed through development charges, and would thus not need to be covered through the Township’s water and wastewater rates. Projections on future operating costs were developed based on data from the Township’s 2012, 2013, 2014 and 2015 budgets, as well as information contained in the Town’s FIR for the same years. Amortization expenses related to the Township’s tangible capital assets were calculated using the Township’s Citywide asset inventory. Planned capital expenditures for the replacement of infrastructure during the planning horizon were obtained from the Water and Wastewater Systems Condition Assessment (WSP, 2015).

The conclusions of the analysis of the three financial statements developed for this Financial Plan are provided below:


Despite showing a projected annual deficit between 2015 and 2030, the proposed revenue increases would be sufficient to cover the water and wastewater operating expenses.

The deficits shown are due to the fact that amortization expenses are included in this statement, despite amortization being a non-cash expense. As demonstrated in Section 0 using the Operating Cash Flow calculation, there is still sufficient cash to cover the operating and interest expenses during the whole planning period.


There is a positive operating cash flow throughout the projection horizon. This indicates that revenues are sufficient to cover operating expenses.

The combination of cash available from operating transactions and available capital reserves are sufficient to cover the costs of debt repayment and the projected capital works as defined in the Water and Wastewater Systems Condition Assessment (WSP, Russell Water and Wastewater Systems Condition Assessment, 2015).


The net financial assets value is negative throughout the projection horizon, however it increases each year as debt payments are made. A net financial deficit indicates that future revenues will be required to pay for past transactions, i.e. a portion of future revenues from water and wastewater rates will be required to pay for debts previously incurred by the Township.


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The value of the Township’s tangible capital assets decreases from $65,623,389 in 2015 to $48,629,850 in 2030. This decrease is due to the annual amortization expenses exceeding the values of tangible capital assets acquired over the planning horizon

RECOMMENDATIONS AND NEXT STEPS 5.2

It was determined that the current levels of revenue need to be increased to maintain a positive Operating Cash Flow and to create an adequate Capital Expenditure Balance. The revenues resulting from the water and sewage rate increases recommended by WSP are sufficient. The recommended annual rate increases are shown below in Table 5-1. The resulting operating cash flow and capital expenditure balance are indicators of the municipality’s ability to cover their operating expenses, while setting aside sufficient monies to pay for capital expenditures for the replacement of the water and wastewater infrastructure.

Table 5-1 Annual Water and Sewer Rate Increases

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Water Flat Rate - Adjusted

$427.00 $419.00 $411.00 $402.00 $389.00 $380.00 $371.00 $364.00 $356.00 $350.00 $343.00

Water Variable Rate

$295.68 $369.29 $391.45 $414.93 $439.83 $466.22 $494.19 $523.84 $555.27 $588.59 $623.91

Total Sewer Rate - Adjusted

$376.14 $353.00 $350.00 $340.00 $307.00 $302.00 $296.00 $292.00 $287.00 $283.00 $280.00

Change in Flat Rate - Adjusted

-2% -2% -2% -3% -2% -2% -2% -2% -2% -2%

Change in Variable Rate

25% 6% 6% 6% 6% 6% 6% 6% 6% 6%

Change in Total Sewer Rate

-6% -1% -3% -10% -2% -2% -1% -2% -1% -1%

Change in Total W & WW Rates

4% 1% 0% -2% 1% 1% 2% 2% 2% 2%


25

The following steps are required in accordance with the requirements of the Financial Plan Regulation:

1. Provide notice advising the public of the availability of the Financial Plan

2. The Financial Plan be made available, on request and without charge, to the members of the public that are served by the water and wastewater system

3. The Financial Plan be made available on the Township of Russell’s website

4. A copy of the Financial Plan, along with the council resolution be submitted to the Ministry of Municipal Affairs and Housing

5. The Financial Plan be updated and approved prior to applying for a licence renewal (i.e. every five years). A copy of the Council resolution will have to be submitted to the Ministry of the Environment with the licence renewal application.

6 BIBLIOGRAPHY Ministry of the Environment. (2007). Toward Financially Sustainable Drinking-Water and Wastewater Systems.

Public Sector Digest. (2013). The Asset Management Plan for the Township of Russell.

Township of Russell. (2010). By-law No. 23-2010.

Watson & Associates. (2015). Russell Water and Wastewater Rate Study Peer Review.

WSP. (2015). Russell Water and Wastewater Systems Condition Assessment.


Appendix AWATERWORKS & SEWER BUDGET PROJECTIONS

4/15/2015 - 2:31 PM

MUNICIPALITÉ RUSSELL TOWNSHIPQuarterly Report / Rapport trimestriel G/L # DESCRIPTION

2012 2012 2013 2013 2014 30-Sep-14 2014 31-Dec-14 2015 2015 (Approach 2) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030BUDGET AUDITED BUDGET AUDITED BUDGET UNVERIFIED Anticipated UNVERIFIED BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGETBUDGET VÉRIFIÉ BUDGET VÉRIFIÉ BUDGET NON VÉRIFIÉ Anticipée NON VÉRIFIÉ BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ $ FINAL $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

RÉSEAU D'ÉGOUT SANITAIRE Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increaseSANITARY SEWAGE SYSTEM 0% 0% 13% 13%

Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase49.0% 34.05% 0.6% 0.6%

Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate Variable rate0.879 1.178 1.185% 1.185%

REVENUS / REVENUES00-411-0000-5400 TAUX FIXE - EGOUT

FIXED RATE - SEWERS534,466 544,657 534,466 559,521 604,802 491,343 113,459 664,872 675,530 1,312,934 1,356,026 1,369,982 1,284,598 1,310,486 1,330,330 1,357,613 1,378,851 1,403,499 1,432,020 1,454,343 1,480,850 1,506,427 1,536,808 1,560,680 1,589,666

00-411-0000-5401 TAUX VARIABLE / VARIABLE RATE2014=71% (2013=65.71%) (2012=50%)(2011=38%)

505,967 488,630 655,009 667,657 692,999 528,693 164,306 692,999 700,043

00-411-0000-5410 FACTURATION # 101-2007BILLING # 101-2007

0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0000-5415 AUTRES REVENUS DIVERSOTHER MISC REVENUES

500 97 0 200 0 2,833 2,833 3,000 3,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

00-411-0000-5445 REV INT - LACHAINE ST EMPRUNTINT REV - LACHAINE ST - LOAN

700 616 550 552 550 2,187 2,187 2,200 2,200 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500

00-411-0000-5610 PERMIS RACCORDEMENT & INSPECTIONCONNEXION & INSPECTION PERMITS

0 800 800 1,620 800 1,650 (850) 800 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

00-411-0000-5770 AMENDES ET INT SUR ARRERAGESPENALTIES AND INT ON ARREARS

6,000 6,771 6,000 8,294 6,000 5,573 427 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

00-411-0000-5800 INTÉRÊT SUR COMPTES BANCAIRESINTEREST ON BANK ACCOUNTS

8,701 15,000 9,776 15,000 27,961 (12,961) 15,000 15,000 15,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-3150-3200 CONTRIBUTION FD RÉSERVESCONTRIBUTION RESERVES FD

16,035 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0000-7300 CONTRIBUTION DES RÉSERVES - DCCONTRIBUTION FROM RESERVES - DC

25,000 0 25,000 0 25,000 0 25,000 25,000 17,000 53,194 53,194 53,194 53,194 53,194 53,194 53,194 53,194 53,194 0 0 0 0 0 0 0

00-411-0020-7300 CONTRIBUTION DES RÉSERVES - DCCONTRIBUTION FROM RESERVES - DC

0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL DES REVENUSTOTAL REVENUES 1,088,668 1,050,273 1,236,825 1,247,620 1,345,151 1,060,239 289,382 1,409,691 1,420,774 1,394,328 1,418,720 1,432,676 1,347,292 1,373,180 1,393,024 1,420,307 1,441,545 1,466,193 1,441,520 1,463,843 1,490,350 1,515,927 1,546,308 1,570,180 1,599,166

Rate Revenues 1,040,433 1,033,287 1,189,475 1,227,177 1,297,801 1,020,036 277,765 1,357,872 1,375,574 1,312,934 1,356,026 1,369,982 1,284,598 1,310,486 1,330,330 1,357,613 1,378,851 1,403,499 1,432,020 1,454,343 1,480,850 1,506,427 1,536,808 1,560,680 1,589,666

Other Revenues 23,235 16,986 22,350 20,442 22,350 40,203 (13,384) 26,819 28,200 28,200 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500

DC Revenues 25,000 0 25,000 0 25,000 0 25,000 25,000 17,000 53,194 53,194 53,194 53,194 53,194 53,194 53,194 53,194 53,194 0 0 0 0 0 0 0

FRAIS D'EXPLOITATIONOPERATING EXPENSES00-411-0000-6100 SALAIRES

SALARIES330,317 231,097 288,806 249,433 296,177 159,133 137,044 296,177 339,513 339,513 346,303 353,229 360,294 367,500 374,850 382,347 389,994 397,794 405,749 413,864 422,142 430,585 439,196 447,980 456,940

00-411-0000-6110 SALAIRES TEMPS PARTIELSALARIES PART TIME

- 2,359 0 0 0 0 0 0 5,486 5,486 5,596 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0000-6180 SALAIRES SURTEMPSSALARIES OVERTIME

29,500 10,061 23,600 8,656 23,600 6,022 17,578 23,600 23,600 23,600 24,072 24,553 25,045 25,545 26,056 26,577 27,109 27,651 28,204 28,768 29,344 29,931 30,529 31,140 31,762

00-411-0000-6200 PENSION DU CANADACANADA PENSION PLAN

14,893 10,473 12,538 10,527 12,891 7,356 5,534 12,891 14,858 14,858 15,155 15,458 15,767 16,083 16,404 16,733 17,067 17,409 17,757 18,112 18,474 18,844 19,220 19,605 19,997

00-411-0000-6210 ASSURANCE-EMPLOIEMPLOYMENT INSURANCE

8,840 4,557 8,068 4,801 8,283 3,451 4,832 8,283 9,702 9,702 9,896 10,094 10,296 10,502 10,712 10,926 11,145 11,367 11,595 11,827 12,063 12,304 12,551 12,802 13,058

00-411-0000-6220 C.S.P.A.A.T.W.S.I.B.

4,453 4,191 4,139 4,165 4,496 2,502 1,994 4,496 7,099 7,099 7,241 7,386 7,534 7,684 7,838 7,995 8,155 8,318 8,484 8,654 8,827 9,003 9,183 9,367 9,554

00-411-0000-6230 IMPÔT-SANTÉ DES EMPLOYEURSEMPLOYER'S HEALTH TAX

6,917 6,803 5,992 6,837 6,137 3,643 2,494 6,137 7,188 7,188 7,332 7,478 7,628 7,781 7,936 8,095 8,257 8,422 8,590 8,762 8,937 9,116 9,298 9,484 9,674

00-411-0000-6240 ASSURANCE COLLECTIVEGROUP INSURANCE

22,460 20,023 19,121 17,915 14,546 9,478 5,068 14,546 16,882 16,882 17,220 17,564 17,915 18,274 18,639 19,012 19,392 19,780 20,176 20,579 20,991 21,410 21,839 22,275 22,721

00-411-0000-6250 R.É.E.R.R.R.S.P.

3,474 4,406 3,071 5,015 3,116 2,876 239 3,116 3,162 3,162 3,225 3,290 3,356 3,423 3,491 3,561 3,632 3,705 3,779 3,854 3,932 4,010 4,090 4,172 4,256

00-411-0000-6260 O.M.E.R.S.O.M.E.R.S.

23,470 26,193 22,420 30,065 22,028 15,900 6,128 22,028 24,851 24,851 25,348 25,855 26,372 26,900 27,438 27,986 28,546 29,117 29,699 30,293 30,899 31,517 32,147 32,790 33,446

00-411-0000-6301 M&F- CHAUF. GAS. NAT.M&S- HEATING NAT. GAS

1,200 1,901 3,200 5,543 3,200 3,201 3,201 3,300 3,300 3,366 3,433 3,502 3,572 3,643 3,716 3,791 3,866 3,944 4,023 4,103 4,185 4,269 4,354 4,441

00-411-0000-6304 M&F- PROPANE (HEATING)M&S- PROPANE (HEATING)

2,000 3,303 2,500 5,149 3,500 7,291 7,291 7,655 7,655 7,808 7,964 8,124 8,286 8,452 8,621 8,793 8,969 9,148 9,331 9,518 9,708 9,903 10,101 10,303

00-411-0000-6305 M&F- HYDROM&S- HYDRO

105,200 117,873 110,000 101,911 110,000 72,649 37,351 110,000 115,500 115,500 117,810 120,166 122,570 125,021 127,521 130,072 132,673 135,327 138,033 140,794 143,610 146,482 149,412 152,400 155,448

00-411-0000-6321 M&F-FOURNITURES BUREAU, ÉQUIP.M&S-OFFICE SUPPLIES, EQUIP.

4,700 2,410 3,000 2,088 3,000 2,778 222 3,000 3,000 3,000 3,060 3,121 3,184 3,247 3,312 3,378 3,446 3,515 3,585 3,657 3,730 3,805 3,881 3,958 4,038

00-411-0000-6322 M&F-POSTE ET LIVRAISON SPÉCIALEM&S-POSTAGE AND COURRIER SERVICE

4,100 6,066 6,000 5,883 6,000 4,583 1,417 6,000 6,000 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030 7,171 7,314 7,460 7,609 7,762 7,917 8,075

00-411-0000-6323 M&F-TÉLÉPHONE, COMMUNICATIONSM&S-TELEPHONE, COMMUNICATIONS

8,000 6,254 8,000 5,241 6,000 3,766 2,234 6,000 6,800 6,800 6,936 7,075 7,216 7,361 7,508 7,658 7,811 7,967 8,127 8,289 8,455 8,624 8,797 8,972 9,152

00-411-0000-6324 M&F-DÉPENSES DE VOYAGEM&S-TRAVELLING

4,000 2,753 4,000 963 4,000 242 3,758 4,000 5,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597 6,729

00-411-0000-6325 M&F-PUBLICATIONS, LIVRES, REVUESM&S-PUBLICATIONS, BOOKS, MAGAZINE

500 242 500 111 500 275 225 500 500 500 510 520 531 541 552 563 574 586 598 609 622 634 647 660 673

00-411-0000-6340 MTCE PROJ - ÉQUIPEMENT ET MATÉRIELPA - EQUIPMENT AND MATERIAL

0 22,020 35,000 29,157 35,000 22,193 12,807 35,000 30,000 30,000 30,600 31,212 31,836 32,473 33,122 33,785 34,461 35,150 35,853 36,570 37,301 38,047 38,808 39,584 40,376

00-411-0000-6344 M&F-ÉQUIPEMENT & MATÉRIELM&S-EQUIPMENT & MATERIAL

20,000 1,568 0 80 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0000-6345 M&F-ENTRETIEN DE VÉHICULEM&S-VEHICULE MAINTENANCE

4,000 881 3,000 5,075 5,000 1,988 3,012 5,000 7,000 7,000 7,140 7,283 7,428 7,577 7,729 7,883 8,041 8,202 8,366 8,533 8,704 8,878 9,055 9,236 9,421

00-411-0000-6349 M&F-PRODUITS CHIMIQUESM&S-CHEMICALS

95,000 73,091 85,000 90,558 85,000 55,800 29,200 85,000 90,000 90,000 91,800 93,636 95,509 97,419 99,367 101,355 103,382 105,449 107,558 109,709 111,904 114,142 116,425 118,753 121,128

00-411-0000-6355 M&F-PRODUITS D'ENTRETIENM&S-MAINTENANCE SUPPLY

1,000 242 1,000 553 1,000 114 886 1,000 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294 1,319 1,346

00-411-0000-6370 M&F-UNIFORMES, BOTTESM&S-UNIFORMS, BOOTS

2,500 1,545 2,500 2,069 2,500 626 1,874 2,500 2,500 2,500 2,550 2,601 2,653 2,706 2,760 2,815 2,872 2,929 2,988 3,047 3,108 3,171 3,234 3,299 3,365

00-411-0000-6375 M&F-ESSENCE, DIESELM&S-FUEL, DIESEL

10,000 10,915 13,000 12,126 12,000 9,002 2,998 12,000 12,600 12,600 12,852 13,109 13,371 13,639 13,911 14,190 14,473 14,763 15,058 15,359 15,667 15,980 16,299 16,625 16,958

00-411-0000-6390 M&F-ASSURANCEM&S-INSURANCE

16,000 18,191 18,500 17,704 18,500 14,073 4,427 18,500 18,500 18,500 18,870 19,247 19,632 20,025 20,425 20,834 21,251 21,676 22,109 22,551 23,002 23,462 23,932 24,410 24,899

00-411-0000-6399 M&F- DIVERSM&S- MISC

0 0 1,000 0 1,000 0 1,000 1,000 2,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 2,487 2,536 2,587 2,639 2,692

00-411-0000-6420 PMT TENANT LIEU D'IMPÔT COMTÉPAYMENTS IN LIEU COUNTY

15,000 16,815 17,150 19,363 17,150 19,154 19,154 17,150 17,150 17,493 17,843 18,200 18,564 18,935 19,314 19,700 20,094 20,496 20,906 21,324 21,750 22,185 22,629 23,082

00-411-0000-6430 S&L-FORMATION DU PERSONNELS&R-STAFF TRAINNING

5,000 5,035 5,000 1,356 4,000 4,995 4,995 8,000 8,000 8,160 8,323 8,490 8,659 8,833 9,009 9,189 9,373 9,561 9,752 9,947 10,146 10,349 10,556 10,767

00-411-0000-6440 S&L-CONVENTIONS ET DÉLÉGATIONSS&R-CONVENTIONS AND DELEGATIONS

2,000 0 2,000 334 2,000 125 1,875 2,000 2,500 2,500 2,550 2,601 2,653 2,706 2,760 2,815 2,872 2,929 2,988 3,047 3,108 3,171 3,234 3,299 3,365

00-411-0000-6442 S&L-FRAIS DE COTISATIONSUR-MEMBERSHIP FEES

500 225 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0000-6444 S&L-PUBLICITÉS&R-PUBLICITY

750 97 750 570 750 0 750 750 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294 1,319 1,346

00-411-0000-6449 MTCE PROJ - SERVICES ET LOCATIONSPA - SERVICES & RENTS

0 120,477 125,000 83,673 125,000 56,124 68,876 125,000 125,000 125,000 127,500 130,050 132,651 135,304 138,010 140,770 143,586 146,457 149,387 152,374 155,422 158,530 161,701 164,935 168,234

SECTION 8-M, #1Page 1

Environmental ServicesHygiène du milieu et écologie

4/15/2015 - 2:31 PM

MUNICIPALITÉ RUSSELL TOWNSHIPQuarterly Report / Rapport trimestriel30-Sep-14G/L # DESCRIPTION 2012 2012 2013 2013 2014 30-Sep-14 2014 31-Dec-14 2015 2015 (Approach 2) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

BUDGET AUDITED BUDGET AUDITED BUDGET UNVERIFIED Anticipated UNVERIFIED BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGETBUDGET VÉRIFIÉ BUDGET VÉRIFIÉ BUDGET NON VÉRIFIÉ Anticipée NON VÉRIFIÉ BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ $ FINAL $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

00-411-0000-6450 S&L-ÉQUIPEMENT & MATÉRIELS&R-EQUIPMENT & MATERIAL

115,000 3,038 10,000 0 10,000 382 9,618 10,000 10,000 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951 12,190 12,434 12,682 12,936 13,195 13,459

00-411-0000-6451 S&L-ENTRETIEN DE VÉHICULES&R-VEHICULE MAINTENANCE

4,000 2,229 4,000 2,401 4,000 1,847 2,153 4,000 5,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597 6,729

00-411-0000-6455 S&L-ENTRETIEN PROPRIÉTÉS&R-MTCE OF PREMISES

11,000 13,488 11,000 17,331 11,000 10,675 325 11,000 11,000 11,000 11,220 11,444 11,673 11,907 12,145 12,388 12,636 12,888 13,146 13,409 13,677 13,951 14,230 14,514 14,805

00-411-0000-6464 S&L-SUPPORT INFORMATIQUE / CUPRS&R-COMPUTER TECH. SUPPORT / UCPR

1,000 1,677 1,000 375 1,000 0 1,000 1,000 2,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 2,487 2,536 2,587 2,639 2,692

00-411-0000-6465 S&L-CONTRAT SERVICES&R-SERVICE CONTRACT

2,000 431 2,000 95 2,000 121 1,879 2,000 2,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 2,487 2,536 2,587 2,639 2,692

00-411-0000-6470 S&L-CONTRAT SERVICE-INF. DIAMONDS&R-SERVICE CONTRACT-I.T. DIAMOND

2,115 3,403 3,403 3,500 3,500 3,570 3,641 3,714 3,789 3,864 3,942 4,020 4,101 4,183 4,266 4,352 4,439 4,528 4,618 4,711

00-411-0000-6472 S&L-CONTRAT D'ENTRETIENS&R-JANITORIAL SERVICES

5,000 3,683 5,000 3,928 5,000 2,610 2,390 5,000 5,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597 6,729

00-411-0000-6480 S&F-FRAIS PROFESSIONNELS - AUTRESS&R-PROFESSIONAL FEES - OTHER

0 0 0 1,789 0 24,503 24,503 20,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 24,380 24,867 25,365 25,872 26,390 26,917

00-411-0000-6483 S&F-FRAIS PROF - INGÉNIERIESS&R-PROF FEES - ENGINEERING

25,000 29,817 35,000 32,171 35,000 1,876 33,124 35,000 30,000 30,000 30,600 31,212 31,836 32,473 33,122 33,785 34,461 35,150 35,853 36,570 37,301 38,047 38,808 39,584 40,376

00-411-0000-6484 S&F-FRAIS PROF - MASTER PLANS&R-PROF FEES - MASTER PLAN

25,000 0 25,000 2,122 25,000 1,146 23,854 25,000 20,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 24,380 24,867 25,365 25,872 26,390 26,917

00-411-0000-6485 S&F-FRAIS PROF - JURIDIQUESS&R-PROF FEES - LEGAL

2,731 50,000 3,703 50,000 19,961 30,039 50,000 25,000 25,000 25,500 26,010 26,530 27,061 27,602 28,154 28,717 29,291 29,877 30,475 31,084 31,706 32,340 32,987 33,647

00-411-0000-6486 S&F-FRAIS PROF., ÉCHANTILLONSS&R-PROF. FEES, LAB TESTING

15,000 16,389 20,000 20,052 20,000 9,596 10,404 20,000 20,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 24,380 24,867 25,365 25,872 26,390 26,917

00-411-0000-6487 S&F-FRAIS PROF - DWQMS - VÉRIF.S&R-PROF FEES DWQMS - AUDIT

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0000-6500 S&L-LOCATION ÉQUIP. DE BUREAUS&R-LEASE OFFICE EQUIPMENT

1,000 1,559 1,000 2,538 1,000 1,486 1,486 1,500 1,500 1,530 1,561 1,592 1,624 1,656 1,689 1,723 1,757 1,793 1,828 1,865 1,902 1,940 1,979 2,019

00-411-0000-6522 INTÉRÊT PAIEMENT EN RETARDINTEREST ON LATE PAYMENT

0 11 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0000-6525 FRAIS BANCAIRESBANK SERVICE CHARGES

2,739 1,400 2,604 1,400 1,759 1,759 1,800 1,800 1,836 1,873 1,910 1,948 1,987 2,027 2,068 2,109 2,151 2,194 2,238 2,283 2,328 2,375 2,423

00-411-0000-6545 MAUVAISES CRÉANCESBAD DEBTS EXPENSES

0 0 572 0 70 70 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0000-27XX EMPRUNT L.T. - CAPITALL.T. DEBT - PRINCIPAL

0 0 0 0 0 0 0 0 0 0

00-411-0001-6535 EMPRUNT L.T. - INTÉRÊTL.T. DEBT - INTEREST

0 0 0 0 0 0 0 0 0 0

00-411-0000-2722 CAP (RUSSELL PUMP STN) 5 ANSPRIN (RUSSELL PUMPING STN) 5 YRS

18,688 0 96,286 96,519 98,518 49,007 49,511 98,518 100,558 100,558 98,518 98,518

00-411-0002-6535 INTÉRÊT (RUSSELL PUMPING STN)INTEREST (RUSSELL PUMPING STN)

14,950 0 10,443 9,867 7,869 4,187 3,682 7,869 5,829 5,829 7,869 7,869

00-411-0000-2720 CAPITAL (EMBRUN DEV.)PRINCIPAL (EMBRUN DEV.)

0 0 0 0 49,259 49,259 49,259 49,259 49,259 49,259 49,259 49,259 49,259 49,259 49,259 49,259 49,259

00-411-0003-6535 INTÉRÊT (EMBRUN DEV.)INTEREST (EMBRUN DEV.)

0 0 0 0 3,935 0 3,935 3,935 3,935 3,935 3,935 3,935 3,935 3,935 3,935 3,935 3,935 3,935

00-411-0000-2723 EMPRUNT L.T. CAPITAL - 115-07 STN 7L.T. DEBT PRINCIPAL 115-07 STN 7

19,700 19,699 20,300 20,299 20,916 87,576 (66,660) 20,916 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-0004-6535 EMPRUNT L.T. - INTÉRÊT 115-07 STN 7L.T. DEBT - INTEREST 115-07 STN 7

3,557 3,560 2,960 2,960 2,344 0 2,344 2,344 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-3150-3240 TRANSFERT AU FDS RÉSERVE (ACTIFS)TRANSFER TO RESERVE FUND (ASSETS)

0 107,627 62,580 62,580 105,538 295,695 (221,300) 74,396 187,049 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829 159,829

00-411-3150-3241 TRANSFERT AU FONDS RÉS. 70-05TRANSFER TO RESERVE FUND 70-05

0 1,074 0 1,085 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-411-3300-3300 TRANSFERT AU FONDS DE CAPITALTRANSFER TO CAPITAL FUND

82,000 71,740 45,000 51,732 55,000 55,000 0 55,000

TOTAL DES DÉPENSESTOTAL EXPENSES 1,088,669 1,013,560 1,236,825 1,063,762 1,345,151 1,060,239 289,382 1,349,621 1,420,776 1,393,556 1,415,038 1,431,243 1,347,093 1,369,775 1,392,910 1,416,507 1,440,577 1,465,128 1,436,976 1,462,519 1,488,573 1,515,148 1,542,254 1,569,903 1,598,104

Operating Expenses 818,719 1,001,773 568,774 468,611 1,037,384 1,074,146 1,074,146 1,095,629 1,111,834 1,134,071 1,156,752 1,179,887 1,203,485 1,227,554 1,252,106 1,277,148 1,302,691 1,328,744 1,355,319 1,382,426 1,410,074 1,438,276CONTRIBUTION MUNICIPALEMUNICIPAL CONTRIBUTION 1 (36,712.86) (0) (183,858) 0 0.00 (0.00) (60,070.36) 2 (772) (3,681) (1,433) (199) (3,406) (115) (3,799) (968) (1,064) (4,544) (1,324) (1,777) (779) (4,054) (277) (1,062)

SECTION 8-M, #1Page 2


4/15/2015 - 2:30 PM

MUNICIPALITÉ RUSSELL TOWNSHIPQuarterly Report / Rapport trimestriel G/L # DESCRIPTION

2012 2012 2013 2013 2014 30-Sep-14 2014 31-Dec-14 2015 2015 (Approach 2) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030BUDGET AUDITED BUDGET AUDITED BUDGET UNVERIFIED Anticipated UNVERIFIED BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ $ FINAL $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $RÉSEAU D'AQUEDUC Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increase Fixe rate increaseWATERWORKS SYSTEM 0% 0% 0% 0% -2% -2% -2% -3% -2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -1% -1%

Var rate increase Var rate increase Var rate increase Var rate increase Var rate increase12% 2% 1% 13% 25% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%

Fire Protection Fire Protection Fire ProtectionFire Protection Rate

IncreaseFire Protection Rate

Increase0% New fire rate 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

New Variable rate New Variable rate New Variable rate New Variable rate New Variable rate1.758 1.793 1.81 2.040 2.266 2.402 2.546 2.698 2.860 3.032 3.214 3.407 3.611 3.828 4.057 4.301 4.559 4.832 5.122 5.430

REVENUS / REVENUES00-431-0000-5450 TAUX FIXE - EAU

FIXED RATE - WATER1,679,090 1,693,476 1,679,090 1,727,633 1,679,090 1,343,421 335,669 1,796,491 1,837,657 1,819,987 1,848,943 1,870,765 1,870,563 1,886,185 1,899,017 1,919,607 1,932,598 1,954,276 1,968,355 1,986,158 2,008,150 2,022,388 2,041,125 2,064,826 2,080,617

00-431-0000-5451 TAUX VARIABLE - CONSOMMATIONVARIABLE RATE - CONSUMPTION

1,219,786 1,231,779 1,244,181 1,208,920 1,256,623 957,691 298,932 1,261,409 1,419,641 1,604,060 1,760,978 1,930,951 2,114,981 2,314,144 2,529,592 2,762,564 3,014,385 3,286,480 3,580,374 3,897,704 4,240,224 4,609,816 5,008,493 5,438,416 5,901,899

00-431-0000-5453 PROTECTION FEUFIRE PROTECTION

132,707 136,758 226,480 218,908 226,480 233,599 (7,119) 224,627 226,480 226,480 231,010 235,630 240,342 245,149 250,052 255,053 260,154 265,357 270,665 276,078 281,599 287,231 292,976 298,836 304,812

00-431-0000-5455 AUTRES REVENUSOTHER REVENUES

0 0 0 0 0 600 600 600 600 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-5459 PROJET D'EAU RUE CASTORCASTOR ST WATERMAIN

0 3,966 5,000 0 5,000 3,966 1,034 3,966 5,000 5,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-5460 REV INT - ST-THOMAS ST EMPRUNTINT REV - ST-THOMAS ST - LOAN

0 5,500 341 5,500 5,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-5465 VENTE COMPTEURS D'EAUWATER METERS SALE

25,000 26,701 20,000 34,078 20,000 44,268 52,883 46,050 46,050 46,971 47,910 48,869 49,846 50,843 51,860 52,897 53,955 55,034 56,135 57,257 58,403 59,571 60,762 61,977

00-431-0000-5490 FRAIS DEMANDES DE SERVICESERVICE REQUESTS FEES

12,000 16,788 17,000 17,760 20,000 13,330 6,670 17,715 20,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 24,380 24,867 25,365 25,872 26,390 26,917

00-431-0000-5610 PERMIS DE RACCORDEMENTCONNECTION PERMITS

3,000 7,100 8,100 14,625 10,500 11,925 14,650 15,000 15,000 15,300 15,606 15,918 16,236 16,561 16,892 17,230 17,575 17,926 18,285 18,651 19,024 19,404 19,792 20,188

00-431-0000-5770 AMENDES ET INT SUR ARRERAGESPENALTIES AND INT ON ARREARS

25,000 12,690 12,000 12,134 12,000 8,359 3,641 13,047 12,000 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060 14,341 14,628 14,920 15,219 15,523 15,834 16,150

00-431-0000-5800 INTÉRÊT SUR COMPTES BANCAIRESINTEREST ON BANK ACCOUNTS

8,390 15,727 10,755 15,727 27,961 (12,234) 15,727 16,000 16,000 16,320 16,646 16,979 17,319 17,665 18,019 18,379 18,747 19,121 19,504 19,894 20,292 20,698 21,112 21,534

00-431-0000-5845 VENTE - AQUEDUCSSALE - WATER

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-5850 AUTRES REVENUSOTHER REVENUES

0 2,295 10,000 14,207 10,000 0 10,000 0 10,000 10,000 2,341 2,387 2,435 2,484 2,534 2,584 2,636 2,689 2,742 2,797 2,853 2,910 2,969 3,028 3,088

00-431-0000-5860 LOYER TOURS D'EAU (TELECOM)WATER TOWER RENTAL (TELECOM)

21,600 22,332 42,232 52,105 42,232 30,600 11,632 52,639 52,800 52,800 53,856 54,933 56,032 57,152 58,295 59,461 60,651 61,864 63,101 64,363 65,650 66,963 68,302 69,668 71,062

00-431-0000-7300 CONTRIBUTION RÉSERVES DCCONTRIBUTION RESERVES DC

494,186 478,543 503,543 478,549 503,543 0 503,543 478,549 495,549 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 267,353 267,353 267,353

00-431-3150-3253 CONTRIBUTION RÉSERVES CASTOR STCONTRIBUTION RESERVES CASTOR ST

11,931 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-7850 REMB. DETTE, CAP (ROUTE & PROT)DEBT REFUND, CAPITAL (RDS & BY-LAW)

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-7855 REMB. DETTE, INT (ROUTE & PROT)DEBT REFUND, INTER. (RDS & BY-LAW)

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL DES REVENUSTOTAL REVENUES 3,612,368 3,652,749 3,783,355 3,789,675 3,801,195 2,681,220 1,151,768 3,932,644 4,162,279 4,341,877 4,516,757 4,716,522 4,908,478 5,131,554 5,368,291 5,630,478 5,904,088 6,206,835 6,523,963 6,868,433 7,242,469 7,636,012 7,822,291 8,286,021 8,775,605

Rate Revenues 2,898,876 2,925,256 2,923,271 2,936,553 2,935,713 2,301,112 634,601 3,057,900 3,257,298 3,424,047 3,609,921 3,801,716 3,985,544 4,200,329 4,428,610 4,682,171 4,946,983 5,240,755 5,548,729 5,883,862 6,248,375 6,632,204 7,049,618 7,503,242 7,982,517

Other Revenues 219,307 248,950 356,539 374,572 361,939 380,108 13,624 396,195 409,430 409,430 398,437 406,406 414,534 422,825 431,281 439,907 448,705 457,679 466,833 476,169 485,693 495,407 505,315 515,421 525,729

DC Revenues 494,186 478,543 503,543 478,549 503,543 0 503,543 478,549 495,549 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 508,397 267,353 267,353 267,353

3,424,049.40233089

FRAIS D'EXPLOITATIONOPERATING EXPENSES00-431-0000-6100 SALAIRES

SALARIES330,317 393,547 379,357 390,702 445,111 269,397 175,714 409,786 455,489 455,489 464,599 473,891 483,369 493,036 502,897 512,955 523,214 533,678 544,352 555,239 566,343 577,670 589,224 601,008 613,028

00-431-0000-6105 SALAIRES - BORNES FONTAINESSALARIES - FIRE HYDRANTS

0 9,728 0 12,873 (12,873) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-6110 SALAIRES TEMPS PARTIELSALARIES PART TIME

0 2,359 0 0 0 0 0 0 5,486 5,486 5,596 5,708 5,822 5,938 6,057 6,178 6,302 6,428 6,556 6,687 6,821 6,958 7,097 7,239 7,383

00-431-0000-6180 SALAIRES SURTEMPSSALARIES OVERTIME

29,500 38,251 35,400 34,494 36,150 28,883 7,267 38,494 36,150 36,150 36,873 37,610 38,363 39,130 39,913 40,711 41,525 42,355 43,203 44,067 44,948 45,847 46,764 47,699 48,653

00-431-0000-6200 PENSION DU CANADACANADA PENSION PLAN

14,893 10,473 16,967 10,717 19,421 10,946 8,475 12,920 20,142 20,142 20,545 20,956 21,375 21,802 22,238 22,683 23,137 23,600 24,072 24,553 25,044 25,545 26,056 26,577 27,108

00-431-0000-6210 ASSURANCE-EMPLOIEMPLOYMENT INSURANCE

8,840 4,556 10,102 4,895 11,287 5,132 6,155 5,984 12,148 12,148 12,391 12,639 12,892 13,149 13,412 13,681 13,954 14,233 14,518 14,808 15,105 15,407 15,715 16,029 16,350

00-431-0000-6220 C.S.P.A.A.T.W.S.I.B.

4,453 4,190 5,289 4,215 6,455 3,475 2,980 4,878 8,561 8,561 8,732 8,907 9,085 9,267 9,452 9,641 9,834 10,031 10,231 10,436 10,645 10,857 11,075 11,296 11,522

00-431-0000-6230 IMPÔT-SANTÉ DES EMPLOYEURSEMPLOYER'S HEALTH TAX

6,917 6,802 8,088 6,916 9,385 5,396 3,989 8,031 9,694 9,694 9,888 10,086 10,287 10,493 10,703 10,917 11,135 11,358 11,585 11,817 12,053 12,294 12,540 12,791 13,047

00-431-0000-6240 ASSURANCE COLLECTIVEGROUP INSURANCE

22,460 20,018 25,799 17,911 21,660 14,149 7,511 19,813 23,393 23,393 23,861 24,338 24,825 25,321 25,828 26,344 26,871 27,409 27,957 28,516 29,086 29,668 30,261 30,867 31,484

00-431-0000-6250 R.É.E.R.R.R.S.P.

3,474 4,406 4,612 5,066 4,721 4,315 406 6,030 4,742 4,742 4,837 4,934 5,032 5,133 5,236 5,340 5,447 5,556 5,667 5,780 5,896 6,014 6,134 6,257 6,382

00-431-0000-6260 O.M.E.R.S.O.M.E.R.S.

23,470 26,190 29,479 30,338 33,665 23,187 10,478 34,964 33,889 33,889 34,567 35,258 35,963 36,683 37,416 38,165 38,928 39,706 40,500 41,311 42,137 42,979 43,839 44,716 45,610

00-431-0000-6301 M&F- CHAUF. GAS. NATM&S- HEATING NAT. GAS

7,000 5,181 7,000 4,791 7,000 3,383 3,617 3,571 7,350 7,350 7,497 7,647 7,800 7,956 8,115 8,277 8,443 8,612 8,784 8,960 9,139 9,322 9,508 9,698 9,892

00-431-0000-6304 M&F- PROPANE (HEATING)M&S- PROPANE (HEATING)

11,000 3,121 12,000 7,520 12,000 17,950 18,873 18,850 18,850 19,227 19,612 20,004 20,404 20,812 21,228 21,653 22,086 22,527 22,978 23,438 23,906 24,384 24,872 25,370

00-431-0000-6305 M&F- HYDROM&S- HYDRO

103,000 94,752 90,000 109,332 90,000 47,520 42,480 74,309 94,500 94,500 96,390 98,318 100,284 102,290 104,336 106,422 108,551 110,722 112,936 115,195 117,499 119,849 122,246 124,691 127,185

00-431-0000-6321 M&F-FOURNITURES BUREAU, ÉQUIP.M&S-OFFICE SUPPLIES, EQUIP.

6,200 2,528 4,000 3,807 4,000 2,778 1,222 5,068 5,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597 6,729

00-431-0000-6322 M&F-POSTE ET LIVRAISON SPÉCIALEM&S-POSTAGE AND COURRIER SERVICE

5,000 6,059 6,000 5,869 6,000 4,305 1,695 5,893 6,000 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030 7,171 7,314 7,460 7,609 7,762 7,917 8,075

00-431-0000-6323 M&F-TÉLÉPHONE, COMMUNICATIONSM&S-TELEPHONE, COMMUNICATIONS

16,000 8,537 10,000 6,572 10,000 5,032 4,968 6,148 10,000 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951 12,190 12,434 12,682 12,936 13,195 13,459

00-431-0000-6324 M&F-DÉPENSES DE VOYAGEM&S-TRAVELLING

4,000 4,190 4,000 3,385 4,000 1,083 2,917 1,475 5,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597 6,729

00-431-0000-6325 M&F-PUBLICATIONS, LIVRES, REVUESM&S-PUBLICATIONS, BOOKS, MAGAZINE

650 262 650 111 650 275 375 275 650 650 663 676 690 704 718 732 747 762 777 792 808 824 841 858 875

00-431-0000-6330 M&F-COMPTEUR D'EAUM&S-WATER METER

25,000 20,604 20,000 26,344 20,000 24,239 44,005 46,050 46,050 46,971 47,910 48,869 49,846 50,843 51,860 52,897 53,955 55,034 56,135 57,257 58,403 59,571 60,762 61,977

00-431-0000-6335 M&F-BORNES FONTAIRESM&S-FIRE HYDRANTS

4,986 4,625 5,000 872 4,128 1,168 9,000 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10,756 10,971 11,190 11,414 11,642 11,875 12,113

00-431-0000-6340 MTCE PROJ - MAT& FOURNITURESPA - WATER MATERIALS & SUPPLIES

0 23,538 25,000 37,089 25,000 46,107 47,569 30,000 30,000 30,600 31,212 31,836 32,473 33,122 33,785 34,461 35,150 35,853 36,570 37,301 38,047 38,808 39,584 40,376

00-431-0000-6344 M&F-ÉQUIPEMENT & MATÉRIELM&S-EQUIPMENT & MATERIAL

45,000 3,338 6,000 134 1,000 0 1,000 0 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294 1,319 1,346

00-431-0000-6345 M&F-ENTRETIEN DE VÉHICULEM&S-VEHICULE MAINTENANCE

5,000 3,418 3,000 3,714 3,000 4,010 6,673 4,000 4,000 4,080 4,162 4,245 4,330 4,416 4,505 4,595 4,687 4,780 4,876 4,973 5,073 5,174 5,278 5,383

SECTION 8-N, #1Page 1


4/15/2015 - 2:30 PM

MUNICIPALITÉ RUSSELL TOWNSHIPQuarterly Report / Rapport trimestriel30-Sep-14G/L # DESCRIPTION 2012 2012 2013 2013 2014 30-Sep-14 2014 31-Dec-14 2015 2015 (Approach 2) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

BUDGET AUDITED BUDGET AUDITED BUDGET UNVERIFIED Anticipated UNVERIFIED BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

$ $ FINAL $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $00-431-0000-6349 M&F-PRODUITS CHIMIQUES

M&S-CHEMICALS15,000 16,281 16,000 12,003 16,000 11,303 4,697 20,031 16,640 16,640 16,973 17,312 17,659 18,012 18,372 18,739 19,114 19,496 19,886 20,284 20,690 21,104 21,526 21,956 22,395

00-431-0000-6355 M&F-PRODUITS D'ENTRETIENM&S-MAINTENANCE SUPPLY

1,000 124 1,000 616 1,000 114 886 176 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294 1,319 1,346

00-431-0000-6370 M&F-UNIFORMES, BOTTESM&S-UNIFORMS, BOOTS

1,200 1,291 1,500 809 1,500 380 1,120 1,291 2,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 2,487 2,536 2,587 2,639 2,692

00-431-0000-6375 M&F-ESSENCE, DIESELM&S-FUEL, DIESEL

13,000 14,152 11,000 16,457 11,000 11,616 (616) 13,885 11,440 11,440 11,669 11,902 12,140 12,383 12,631 12,883 13,141 13,404 13,672 13,945 14,224 14,509 14,799 15,095 15,397

00-431-0000-6390 M&F-ASSURANCEM&S-INSURANCE

35,000 31,241 33,500 32,034 33,500 25,417 8,083 35,690 33,500 33,500 34,170 34,853 35,550 36,261 36,987 37,726 38,481 39,251 40,036 40,836 41,653 42,486 43,336 44,203 45,087

00-431-0000-6399 M&F- DIVERSM&S- MISC

2,000 0 15,000 125 7,500 0 7,500 0 7,500 7,500 7,650 7,803 7,959 8,118 8,281 8,446 8,615 8,787 8,963 9,142 9,325 9,512 9,702 9,896 10,094

00-431-0000-6420 PMT TENANT LIEU D'IMPÔT COMTÉPAYMENTS IN LIEU COUNTY

25,000 32,410 32,615 0 24,615 16,382 8,233 16,382 17,000 17,000 17,340 17,687 18,041 18,401 18,769 19,145 19,528 19,918 20,317 20,723 21,137 21,560 21,991 22,431 22,880

00-431-0000-6430 S&L-FORMATION DU PERSONNELS&R-STAFF TRAINNING

10,000 12,788 11,000 5,654 10,000 4,529 5,471 2,752 10,000 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951 12,190 12,434 12,682 12,936 13,195 13,459

00-431-0000-6435 S&L-BORNES FONTAIRESS&R-FIRE HYDRANTS

0 4,492 4,000 4,868 6,677 5,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597 6,729

00-431-0000-6440 S&L-CONVENTIONS ET DÉLÉGATIONSS&R-CONVENTIONS AND DELEGATIONS

2,000 275 2,000 3,690 2,000 350 1,650 350 3,000 3,000 3,060 3,121 3,184 3,247 3,312 3,378 3,446 3,515 3,585 3,657 3,730 3,805 3,881 3,958 4,038

00-431-0000-6442 S&L-FRAIS DE COTISATIONSUR-MEMBERSHIP FEES

1,000 732 1,000 732 1,000 631 369 631 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294 1,319 1,346

00-431-0000-6444 S&L-PUBLICITÉS&R-PUBLICITY

800 855 1,000 1,233 1,000 565 435 565 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294 1,319 1,346

00-431-0000-6449 MTCE PROJ - LOCATION & SERVICESPA - RENTAL & SERVICES

3,700 44,277 40,000 57,773 45,000 85,783 41,451 50,000 50,000 51,000 52,020 53,060 54,122 55,204 56,308 57,434 58,583 59,755 60,950 62,169 63,412 64,680 65,974 67,293

00-431-0000-6450 S&L-ÉQUIPEMENT & MATÉRIELS&R-EQUIPMENT & MATERIAL

50,000 6,133 6,000 2,653 6,000 6,373 7,820 6,400 6,400 6,528 6,659 6,792 6,928 7,066 7,207 7,352 7,499 7,649 7,802 7,958 8,117 8,279 8,445 8,614

00-431-0000-6451 S&L-ENTRETIEN DE VÉHICULES&R-VEHICULE MAINTENANCE

5,000 2,664 5,000 2,649 5,000 3,914 1,086 5,536 6,000 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030 7,171 7,314 7,460 7,609 7,762 7,917 8,075

00-431-0000-6455 S&L-ENTRETIEN PROPRIÉTÉS&R-MTCE OF PREMISES

9,000 16,208 13,000 14,744 13,000 11,594 1,406 12,651 13,000 13,000 13,260 13,525 13,796 14,072 14,353 14,640 14,933 15,232 15,536 15,847 16,164 16,487 16,817 17,153 17,496

00-431-0000-6464 S&L-SUPPORT INFORMATIQUE / CUPRS&R-COMPUTER TECH. SUPPORT / UCPR

1,000 1,677 1,000 375 1,000 0 1,000 719 1,000 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 1,219 1,243 1,268 1,294 1,319 1,346

00-431-0000-6465 S&L-CONTRAT SERVICE EQUIPS&R-SERVICE CONTRACT EQUIP

500 431 1,000 95 1,000 121 879 121 2,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 2,487 2,536 2,587 2,639 2,692

00-431-0000-6470 S&L-CONTRAT SERVICE-INF. DIAMONDS&R-SERVICE CONTRACT-I.T. DIAMOND

2,115 0 2,968 2,968 3,000 3,000 3,060 3,121 3,184 3,247 3,312 3,378 3,446 3,515 3,585 3,657 3,730 3,805 3,881 3,958 4,038

00-431-0000-6472 S&L-CONTRAT D'ENTRETIENS&R-JANITORIAL SERVICES

5,000 3,821 5,000 3,928 5,000 2,610 2,390 3,699 5,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597 6,729

00-431-0000-6477 CONTRAT ENTR - CONDUITE EAUFEEDER MAIN - SERVICE AGREEMENT

30,000 25,949 30,000 31,784 30,000 13,331 16,669 13,331 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

00-431-0000-6478 SERVICE D'EAU - VILLE OTTAWAWATER SERVICE - CITY OF OTTAWA

1,299,399 1,288,732 1,333,837 1,382,117 1,380,522 1,078,507 302,015 1,613,106 1,573,479 1,604,060 1,760,978 1,930,951 2,114,981 2,314,144 2,529,592 2,762,564 3,014,385 3,286,480 3,580,374 3,897,704 4,240,224 4,609,816 5,008,493 5,438,416 5,901,899

00-431-0000-6479 SERVICE D'EAU - PROTECTION DE FEUWATER SERVICE - FIRE PROTECTION

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-6480 S&F-FRAIS PROFESSIONNELS - AUTRESS&R-PROFESSIONAL FEES - OTHER

20,000 15,749 0 9,752 16,997 10,000 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951 12,190 12,434 12,682 12,936 13,195 13,459

00-431-0000-6483 S&F-FRAIS PROF - INGÉNIERIESS&R-PROF FEES - ENGINEERING

20,000 17,125 20,000 2,081 25,000 7,281 17,719 19,538 20,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 24,380 24,867 25,365 25,872 26,390 26,917

00-431-0000-6484 S&F-FRAIS PROF - MASTER PLANS&R-PROF FEES - MASTER PLAN

25,000 0 25,000 2,122 25,000 1,146 23,854 4,871 37,000 37,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-6485 S&F-FRAIS PROF - JURIDIQUESS&R-PROF FEES - LEGAL

2,322 25,000 4,271 30,000 1,918 28,082 2,167 30,000 30,000 30,600 31,212 31,836 32,473 33,122 33,785 34,461 35,150 35,853 36,570 37,301 38,047 38,808 39,584 40,376

00-431-0000-6486 S&F-FRAIS PROF., ÉCHANTILLONSS&R-PROF. FEES, LAB TESTING

18,000 18,691 18,000 23,257 20,000 13,986 6,014 19,989 20,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 24,380 24,867 25,365 25,872 26,390 26,917

00-431-0000-6487 S&F-FRAIS PROF - DWQMS - VÉRIF.S&R-PROF FEES DWQMS - AUDIT

10,000 6,354 10,000 3,830 10,000 7,665 2,335 9,395 15,000 15,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095 6,217 6,341 6,468 6,597

00-431-0000-6500 S&L-LOCATION ÉQUIP. DE BUREAUS&R-LEASE OFFICE EQUIPMENT

1,000 1,915 2,000 2,538 2,000 1,486 514 1,674 2,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 2,487 2,536 2,587 2,639 2,692

00-431-0000-6522 INTÉRÊT PAIEMENT EN RETARDINTEREST ON LATE PAYMENT

11 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-6525 FRAIS BANCAIRESBANK SERVICE CHARGES

2,739 1,400 2,626 1,400 1,759 2,216 2,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 2,487 2,536 2,587 2,639 2,692

00-431-0000-6545 MAUVAISES CRÉANCESBAD DEBTS EXPENSES

0 0 10,500 0 3,223 3,258 3,300 3,300 3,366 3,433 3,502 3,572 3,643 3,716 3,791 3,866 3,944 4,023 4,103 4,185 4,269 4,354 4,441

00-431-0000-2721 EMP. L.T.- CAP. W.T.P.E. (14,011,000)L.T. DEBT - PRINC. W.T.PE.

219,405 219,405 230,175 230,175 241,475 241,474 1 241,475 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327 253,327

00-431-0001-6535 EMP. L.T.- INT. W.T.P.EL.T. DEBT - INT. W.T.P.E.

671,773 671,773 661,005 661,003 649,705 649,704 1 649,705 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850 637,850

00-431-0000-272x00-431-0002-6530

EMP. L.T.- CAP. COMPTEURS D'EAUL.T. DEBT - PRINC. WATER METERS

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0002-6535 EMP. L.T.- INT. COMPTEURS D'EAUL.T. DEBT - INT. WATER METERS

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-2722 EMP. L.T.- CAP. AQUEDUC RUS. 60-05L.T. DEBT - PRINC. RUS.WAT. 60-05

38,671 38,671 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0003-6535 EMP. L.T.- INT. AQUEDUC RUS. 60-05L.T. DEBT - INT. RUS.WAT. 60-05

705 716 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0000-2723 EMP. L.T. - CAP. RESERVOIRL.T. DEBT - PRINC. RESERVOIR

152,743 152,743 157,425 157,420 162,245 121,221 41,024 162,245 167,210 167,210 167,210 167,210 167,210 167,210 167,210 167,210 167,210 167,210 167,210 167,210 167,210 167,210 0 0 0

00-431-0004-6535 EMP. L.T.- INT. RÉSERVOIRL.T. DEBT - INT. RESERVOIR

88,301 88,301 83,625 83,624 78,805 59,562 19,243 78,805 73,834 73,834 73,834 73,834 73,834 73,834 73,834 73,834 73,834 73,834 73,834 73,834 73,834 73,834 0 0 0

00-431-3150-3200 TRANSFERT AU FONDS DE ROULEMENTTRANSFER TO WORKING FD RESERVE

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-3150-3210 TRANSFERT AU FONDS SURPLUSTRANSFER TO RESERVE SURPLUS

74,719 73,289 0 (431,044) 372,205 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-3150-3252 TRANSFERT AU FDS RÉS (ACTIFS)TRANSFER RESERVE FUND (ASSETS)

90,000 98,390 186,527 186,527 100,425 100,425 0 187,407 239,704 380,871 431,992 442,082 423,500 423,500 423,500 423,500 423,500 423,500 423,500 423,500 423,500 423,500 423,500 423,500 423,500

00-431-3150-3253 TRANSF. AU FDS RÉS. (RUE CASTOR)TRANSFER TO RES. FUND (CASTOR ST)

0 0 5,000 0 5,000 0.00 5,000 3,966 5,000 5,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-3300-3300 TRANSFERT AU FONDS DE CAPITALTRANSFER TO CAPITAL FUND

95,000 67,526 75,000 26,309 75,000 75,000 0 88,043 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

REV INT - ST-THOMAS ST EMPRUNTINT REV - ST-THOMAS ST - LOAN

0 5,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

00-431-0011-6730 TRANSF. AU FONDS RÉS. (W.T.P.E.)TRANSFER TO RES. FUND (W.T.P.E.)

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

New balance to fund EMP. L.T.- CAP. W.T.P.E. (210,000 loan)L.T. DEBT - PRINC. W.T.PE.

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

New balance to fund EMP. L.T.- INT. W.T.P.E (210,000 loan)L.T. DEBT - INT. W.T.P.E.

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL DES DÉPENSESTOTAL EXPENSES 3,612,370 3,652,749 3,783,355 3,789,675 3,801,196 2,681,220 1,151,768 4,047,510 4,162,278 4,339,526 4,512,662 4,715,875 4,904,936 5,128,183 5,368,198 5,626,227 5,903,607 6,201,772 6,522,257 6,866,711 7,236,897 7,634,707 7,821,123 8,280,406 8,773,835

Operating Expenses 2,255,773 2,240,505 2,384,596 2,371,328 2,488,541 1,864,879 714,294 2,635,864 2,785,353 2,815,934 2,948,449 3,141,572 3,349,215 3,572,462 3,812,477 4,070,506 4,347,886 4,646,051 4,966,536 5,310,990 5,681,176 6,078,986 6,506,446 6,965,729 7,459,158CONTRIBUTION MUNICIPALEMUNICIPAL CONTRIBUTION 2 0 0 0 1 0.00 (0.00) (1) (2,351) (4,095) (647) (3,543) (3,371) (93) (4,251) (481) (5,064) (1,706) (1,722) (5,572) (1,305) (1,167) (5,615) (1,769)

SECTION 8-N, #1Page 2


Appendix B

DEBT REPAYMENT SCHEDULE

1

23

4

56

7

8

1314

15

161718212223242526272829303132333435363738394041424344454647484950515253545556575859606162636465666768697071

A I J K L M N

IDENTIFY IF WW PROJECTS X X XPAYMENT SOURCE USER W&S USER W&S REVENUE FD USER W&S USER W&S USER W&SCANTON DE RUSSELLDETTES ET ENGAGEMENTS À LONG TERMEMONTANTS CONSOLIDÉS AUX E/F ET AU F.I.R. To be Paid off 2014 REFINANCED REFINANCEDAU 31 DÉCEMBRE 2014 User Fee User Fee User Fee User Fee User Fee User Fee

Sewer Russell LagoonSewer/Égouts

Stn 7 Limoges SewerWater with Ottawa

project Water Reservoir Water LimogesInitial and refinancing by-laws: 89-2012 (#1 - 5 yrs) 93-2010 (#2 - 3 yrs) 77-2013 (#5 -8yrs final) 17-2011 (#1 - 30 yrs) 31-2011 (#2 - 4 yrs) 77-2013 (#5 -8yrs

final)

Active interest rate: 2.06% to be paid off in 2013 4.00% 4.85% 2.98% 4.00%

503,000.00 196,706.00 400,624.00 14,011,000.00 3,500,000.00 648,709.00Durée Cinq ans ( 5 ) Dix ans (10) Vingt ans (20) Trente ans (30) Vingt ans (20) Vingt ans (20)

Institution financière Infrastructure Ont. ROYAL BANK ROYAL BANK O.I.P.C. ROYAL BANK ROYAL BANKÉchéance finale 3-Dec-17 DEC. 2017 SEPT. 2021 MAR 2041 JUIN 2027 SEPT. 2021Date d'échéance du terme 3-Dec-17 24-Dec-13 19-Sep-13 15-Mar-41 27-Jun-15 19-Sep-13PRINCIPAL2015 100,557.76 87,531.89 13,908.71 253,327.19 167,210.34 23,583.582016 102,639.92 14,475.39 265,762.53 172,331.27 24,544.412017 104,765.16 15,065.16 278,808.29 177,609.03 25,544.372018 15,678.94 292,494.45 183,048.42 26,585.112019 16,317.70 306,852.44 188,654.40 27,668.212020 16,982.51 321,915.23 194,432.07 28,795.462021 13,197.14 337,717.43 200,386.67 22,376.782022 354,295.32 206,523.652023 371,686.99 212,848.572024 389,932.39 219,367.202025 409,073.41 226,085.462026 429,154.03 233,009.482027 450,220.37 139,213.382028 472,320.822029 495,506.132030 519,829.572031 545,347.002032 572,117.022033 600,201.142034 629,663.852035 660,572.832036 692,999.072037 727,017.042038 762,704.912039 800,144.612040 839,422.162041 435,038.51204220432044TOTAL 307,962.84 87,531.89 105,625.55 13,214,124.73 2,520,719.94 179,097.92INTÉRÊTS2015 5,828.82 3,971.89 637,850.25 73,833.66 6,734.662016 3,746.66 3,405.21 625,414.91 68,712.73 5,773.832017 1,621.38 2,815.44 612,369.15 63,434.97 4,773.872018 2,201.66 598,682.99 57,995.58 3,733.132019 1,562.90 584,325.00 52,389.60 2,650.032020 898.09 569,262.21 46,611.93 1,522.782021 221.06 553,460.01 40,657.33 374.782022 536,882.12 34,520.352023 519,490.45 28,195.432024 501,245.05 21,676.802025 482,104.03 14,958.542026 462,023.41 8,034.522027 440,957.07 1,395.622028 418,856.622029 395,671.312030 371,347.872031 345,830.44 .2032 319,060.42

3

4

56

7

8

1314

15

161718

A I J K L M NCANTON DE RUSSELLDETTES ET ENGAGEMENTS À LONG TERMEMONTANTS CONSOLIDÉS AUX E/F ET AU F.I.R. To be Paid off 2014 REFINANCED REFINANCEDAU 31 DÉCEMBRE 2014 User Fee User Fee User Fee User Fee User Fee User Fee

Sewer Russell LagoonSewer/Égouts

Stn 7 Limoges SewerWater with Ottawa

project Water Reservoir Water LimogesInitial and refinancing by-laws: 89-2012 (#1 - 5 yrs) 93-2010 (#2 - 3 yrs) 77-2013 (#5 -8yrs final) 17-2011 (#1 - 30 yrs) 31-2011 (#2 - 4 yrs) 77-2013 (#5 -8yrs

final)

Active interest rate: 2.06% to be paid off in 2013 4.00% 4.85% 2.98% 4.00%

503,000.00 196,706.00 400,624.00 14,011,000.00 3,500,000.00 648,709.00Durée Cinq ans ( 5 ) Dix ans (10) Vingt ans (20) Trente ans (30) Vingt ans (20) Vingt ans (20)

Institution financière Infrastructure Ont. ROYAL BANK ROYAL BANK O.I.P.C. ROYAL BANK ROYAL BANKÉchéance finale 3-Dec-17 DEC. 2017 SEPT. 2021 MAR 2041 JUIN 2027 SEPT. 2021Date d'échéance du terme 3-Dec-17 24-Dec-13 19-Sep-13 15-Mar-41 27-Jun-15 19-Sep-13

72737475767778798081828384

85868788899091929394

9596979899100101102103

104

105

106

2033 290,976.302034 261,513.592035 230,604.612036 198,178.372037 164,160.402038 128,472.532039 91,032.832040 51,755.282041 10,549.68204220432044TOTAL 11,196.86 0.00 15,076.25 10,402,076.90 512,417.06 25,563.08Grand total(Principal + Interests) 319,159.70 87,531.89 120,701.80 23,616,201.63 3,033,137.00 204,661.00

RÉSUMÉ:PRINCIPAL (payable)SOLDE: 2013-12-31 406,480.69 87,531.89 118,989.81 13,455,598.44 2,682,961.53 201,758.252014 - Paiements (Capital) (98,517.85) (87,531.89) (13,364.26) (241,473.71) (162,241.59) (22,660.35)2014 - Paiements (Others)2014 - Ajustment du refinancement2014 - Remboursement de la dette2014 - Nouvelle(s) dette(s)

SOLDE: 2014-12-31 307,962.84 0.00 105,625.55 13,214,124.73 2,520,719.94 179,097.90

INTÉRÊTSSOLDE: 2013-12-31 19,065.59 (0.00) 19,592.59 11,051,780.63 591,219.47 33,220.972014 - Paiements (Capital) (7,868.73) (4,516.34) (649,703.73) (78,802.41) (7,657.89)2014 - Paiements (Others)2014 - Ajustment du refinancement2014 - Remboursement de la dette2014 - Nouvelle(s) dette(s)

SOLDE: 2014-12-31 11,196.86 (0.00) 15,076.25 10,402,076.90 512,417.06 25,563.08

Total Dette:Capital & Intérêts 319,159.70 (0.00) 120,701.80 23,616,201.63 3,033,137.00 204,660.98

Appendix C

ANNUAL AMORTIZATION

ANNUAL AMORTIZATION

WASTEWATERItem 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Sanitary Sewers & Forcemains $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902 $141,902Embrun Lagoon $15,532 $15,532 $15,532 $15,532 $15,532 $15,532 $4,735 $24,237 $24,237 $24,237 $24,237 $24,237 $24,237 $24,237 $24,237 $24,237 $24,237Pumping Stations (sheet 1) $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210 $12,210Pumping Stations (sheet 2) $132,803 $127,724 $136,898 $136,898 $136,898 $136,898 $136,314 $127,661 $140,616 $140,783 $140,783 $140,783 $140,783 $140,783 $140,783 $140,783 $140,783Pumping Stations (sheet 3) $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085 $35,085Russell Lagoon $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $32,901 $6,819Embrun Lagoon Machinery & Equipment (sheet 1) $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760 $8,760Embrun Lagoon Machinery & Equipment (sheet 2) $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323 $3,323Embrun Lagoon Machinery & Equipment (sheet 3) $17,405 $17,405 $17,405 $16,379 $17,568 $17,568 $1,327 $30,660 $30,660 $30,660 $30,660 $30,660 $30,660 $30,660 $30,660 $30,660 $30,660Equipment $268,691 $268,545 $268,741 $268,741 $268,741 $268,741 $268,741 $268,741 $268,741 $268,741 $268,741 $268,741 $268,741 $268,564 $269,343 $269,343 $269,343Russell Lagoon Machinery & Equipment (sheet 1) $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175 $10,175Russell Lagoon Machinery & Equipment (sheet 2) $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643 $4,643Russell Lagoon Machinery & Equipment (sheet 3) $127 $127 $127 $127 $127 $127 $127 $127 $127 $127 $127 $127 $127 $127 $127 $127 $127IT-Computers $4,654 $4,654 $4,654 $4,654 $4,654 $4,654 $4,654 $4,513 $3,834 $5,002 $5,002 $5,002 $5,002 $5,002 $5,002 $5,002 $5,002Machinery $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616 $1,616Total $689,828 $684,601 $693,973 $692,947 $694,136 $694,136 $666,513 $706,553 $718,830 $720,164 $720,164 $720,164 $720,164 $719,986 $720,765 $720,765 $694,684

WATERItem 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Watermains $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024 $406,024Embrun WTP $180,299 $180,299 $180,299 $173,960 $182,480 $182,480 $182,480 $182,480 $182,480 $182,480 $182,480 $182,480 $182,480 $134,318 $221,303 $221,303 $146,737Russell Water Pumping Station $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $40,694 $29,915Water Towers (sheet 1) $52,311 $52,311 $52,311 $52,311 $52,311 $38,554 $67,358 $67,358 $67,358 $67,358 $67,342 $67,380 $67,380 $67,380 $67,380 $67,380 $67,380Water Towers (sheet 2) $78,892 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041 $116,041WTP $163,105 $42,374 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427 $260,427Total $921,324 $837,743 $1,055,796 $1,049,457 $1,057,977 $1,044,220 $1,073,024 $1,073,024 $1,073,024 $1,073,024 $1,073,008 $1,073,046 $1,073,046 $1,024,885 $1,111,869 $1,111,869 $1,026,525

Appendix D

WATER AND SEWAGE RATE CALCULATION AND WATSON’S PEER REVIEW

WATER AND SEWER RATE CALCULATION

*Assumes 70% of debt repayment is from existing development (remaining 30% is from DCs)

SUMMARY OF EXPENDITURES

WATER EXPENDITURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 203570% Debt Repayment (water) $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824 $623,824O&M (water) $1,181,874 $1,157,471 $1,180,621 $1,204,233 $1,228,318 $1,252,884 $1,277,942 $1,303,501 $1,329,571 $1,356,162 $1,383,286 $1,410,951 $1,439,170 $1,467,954 $1,497,313 $1,527,259 $1,557,804 $1,588,960 $1,620,740 $1,653,154 $1,686,217Feedermain Service Agreement $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,001 $30,002 $30,003 $30,004Fire Protection Revenues -$226,480 -$231,010 -$235,630 -$240,342 -$245,149 -$250,052 -$255,053 -$260,154 -$265,357 -$270,665 -$276,078 -$281,599 -$287,231 -$292,976 -$298,836 -$304,812 -$310,909 -$317,127 -$323,469 -$329,939 -$336,537Other Revenues -$182,950 -$167,428 -$170,776 -$174,192 -$177,676 -$181,229 -$184,854 -$188,551 -$192,322 -$196,168 -$200,092 -$204,093 -$208,175 -$212,339 -$216,586 -$220,917 -$225,336 -$229,842 -$234,439 -$239,128 -$243,910Hemson's Approach - Capital AssetReplacement (water) $540,000 $630,000 $720,000 $810,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000

AMP's Approach - Capital AssetReplacement (water) $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423 $1,084,423

Using Findings of Condition Assessment -Capital Asset Replacement (water)

$380,871 $431,992 $442,082 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500 $423,500

Costs to be Recovered through Flat Rate (Condition Assessment)$1,807,139 $1,844,850 $1,870,121 $1,867,023 $1,882,817 $1,898,927 $1,915,359 $1,932,120 $1,949,216 $1,966,654 $1,984,440 $2,002,583 $2,021,088 $2,039,963 $2,059,216 $2,078,854 $2,098,884 $2,119,317 $2,140,157 $2,161,415 $2,183,098

Charge per Volume Ottawa ($/m3) $1.699 $1.801 $1.909 $2.024 $2.145 $2.274 $2.410 $2.555 $2.708 $2.871 $3.043 $3.226 $3.419 $3.624 $3.842 $4.072 $4.317 $4.576 $4.850 $5.141 $5.450Volume billed by Ottawa (m3) $926,022 $977,706 $1,011,392 $1,045,079 $1,078,766 $1,112,452 $1,146,139 $1,179,826 $1,213,512 $1,247,199 $1,280,886 $1,314,572 $1,348,259 $1,381,946 $1,415,632 $1,449,319 $1,483,006 $1,525,997 $1,569,402 $1,613,220 $1,657,452Water Supply Charge $1,604,060 $1,760,978 $1,930,951 $2,114,981 $2,314,144 $2,529,592 $2,762,564 $3,014,385 $3,286,480 $3,580,374 $3,897,704 $4,240,224 $4,609,816 $5,008,493 $5,438,416 $5,901,899 $6,401,423 $6,982,216 $7,611,664 $8,293,635 $9,032,294

Costs to be Recovered through Variable Rate (Condition Assessment)$1,604,060 $1,760,978 $1,930,951 $2,114,981 $2,314,144 $2,529,592 $2,762,564 $3,014,385 $3,286,480 $3,580,374 $3,897,704 $4,240,224 $4,609,816 $5,008,493 $5,438,416 $5,901,899 $6,401,423 $6,982,216 $7,611,664 $8,293,635 $9,032,294

WASTEWATER EXPENDITURES 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Debt Repayment (Russell SPS) $106,387 $106,387 $106,387 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0O&M (wastewater) $1,074,146 $1,095,629 $1,111,834 $1,134,071 $1,156,752 $1,179,887 $1,203,485 $1,227,554 $1,252,106 $1,277,148 $1,302,691 $1,328,744 $1,355,319 $1,382,426 $1,410,074 $1,438,276 $1,467,041 $1,496,382 $1,526,310 $1,556,836 $1,587,973Other Revenues -$28,200 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500 -$9,500Hemson's Approach - Capital AssetReplacement (wastewater) $480,000 $560,000 $640,000 $720,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000

AMP's Approach - Capital AssetReplacement (wastewater) $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282 $714,282

Using Findings of Condition Assessment -Capital Asset Replacement (wastewater)

$159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829 $159,829

Costs to be Recovered through Flat Rate $1,312,162 $1,352,344 $1,368,549 $1,284,399 $1,307,081 $1,330,216 $1,353,813 $1,377,883 $1,402,434 $1,427,476 $1,453,019 $1,479,073 $1,505,648 $1,532,754 $1,560,403 $1,588,604 $1,617,370 $1,646,711 $1,676,638 $1,707,164 $1,738,301

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Total No. Units with Sanitary 3719 3874 4029 4184 4339 4494 4649 4804 4959 5114 5269 5424 5579 5734 5889 6044 6199 6354 6509 6664 6819Total No. Units 4344 4499 4654 4809 4964 5119 5274 5429 5584 5739 5894 6049 6204 6359 6514 6669 6824 6979 7134 7289 7444

70% & ConsumptionRate.


OPTIONS

A. Hemson's Approach 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Water Flat Rate / Taux d'Eau Fixe $452.68 $454.11 $461.58 $468.64 $475.32 $464.07 $453.55 $443.69 $434.43 $425.74 $417.56 $409.86 $402.60 $395.75 $389.29 $383.19 $377.42 $371.97 $366.81 $361.92 $357.30Water Variable Rate / Taux d'Eau Variable $369.29 $391.45 $414.93 $439.83 $466.22 $494.19 $523.84 $555.27 $588.59 $623.91 $661.34 $701.02 $743.08 $787.67 $834.93 $885.02 $938.12 $1,000.51 $1,067.01 $1,137.88 $1,213.42Total Water Rate $821.97 $845.55 $876.52 $908.47 $941.54 $958.27 $977.39 $998.96 $1,023.02 $1,049.64 $1,078.90 $1,110.88 $1,145.68 $1,183.42 $1,224.22 $1,268.21 $1,315.54 $1,372.48 $1,433.81 $1,499.81 $1,570.72Change in Flat Rate 6% 0% 2% 2% 1% -2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -1% -1% -1% -1%Change in Variable Rate 25% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 7% 7% 7% 7%Change in Total Water Rate 14% 3% 4% 4% 4% 2% 2% 2% 2% 3% 3% 3% 3% 3% 3% 4% 4% 4% 4% 5% 5%

Total Sewer Rate $438.87 $452.34 $458.81 $440.83 $448.74 $438.41 $428.87 $420.05 $411.87 $404.28 $397.24 $390.69 $384.60 $378.93 $373.65 $368.74 $364.16 $359.89 $355.92 $352.22 $348.78WW Rate as % of Water Rate: 53% 53% 52% 49% 48% 46% 44% 42% 40% 39% 37% 35% 34% 32% 31% 29% 28% 26% 25% 23% 22%Change in Total Sewer Rate 17% 3% 1% -4% 2% -2% -2% -2% -2% -2% -2% -2% -2% -1% -1% -1% -1% -1% -1% -1% -1%

Total Sewer Rate - Adjusted $439.00 $453.00 $459.00 $441.00 $449.00 $439.00 $429.00 $421.00 $412.00 $405.00 $398.00 $391.00 $385.00 $379.00 $374.00 $369.00 $365.00 $360.00 $356.00 $353.00 $349.00WW Rate as % of Water Rate: 53% 54% 52% 49% 48% 46% 44% 42% 40% 39% 37% 35% 34% 32% 31% 29% 28% 26% 25% 24% 22%Change in Total Sewer Rate 17% 3% 1% -4% 2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -1% -1% -1% -1% -1% -1% -1%

Total Water & Wastewater $1,260.97 $1,298.55 $1,335.52 $1,349.47 $1,390.54 $1,397.27 $1,406.39 $1,419.96 $1,435.02 $1,454.64 $1,476.90 $1,501.88 $1,530.68 $1,562.42 $1,598.22 $1,637.21 $1,680.54 $1,732.48 $1,789.81 $1,852.81 $1,919.72Change in Total W & WW Rates 15% 3% 3% 1% 3% 0% 1% 1% 1% 1% 2% 2% 2% 2% 2% 2% 3% 3% 3% 4% 4%

B. AMP's Approach 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Water Flat Rate / Taux d'Eau Fixe $578.01 $555.12 $539.89 $525.71 $512.47 $500.10 $488.52 $477.66 $467.46 $457.87 $448.85 $440.35 $432.33 $424.76 $417.61 $410.84 $404.45 $398.39 $392.66 $387.22 $382.07Water Variable Rate / Taux d'Eau Variable $369.29 $391.45 $414.93 $439.83 $466.22 $494.19 $523.84 $555.27 $588.59 $623.91 $661.34 $701.02 $743.08 $787.67 $834.93 $885.02 $938.12 $1,000.51 $1,067.01 $1,137.88 $1,213.42Total Water Rate $947.30 $946.56 $954.82 $965.54 $978.69 $994.29 $1,012.36 $1,032.93 $1,056.05 $1,081.78 $1,110.19 $1,141.37 $1,175.41 $1,212.42 $1,252.53 $1,295.87 $1,342.57 $1,398.90 $1,459.67 $1,525.11 $1,595.50Change in Flat Rate 35% -4% -3% -3% -3% -2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -1% -1% -1% -1%Change in Variable Rate 25% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 7% 7% 7% 7%Change in Total Water Rate 31% 0% 1% 1% 1% 2% 2% 2% 2% 2% 3% 3% 3% 3% 3% 3% 4% 4% 4% 4% 5%

Total Sewer Rate $509.45 $494.61 $479.61 $441.73 $431.18 $421.45 $412.48 $404.18 $396.50 $389.38 $382.77 $376.64 $370.94 $365.64 $360.71 $356.13 $351.86 $347.90 $344.21 $340.79 $337.61WW Rate as % of Water Rate: 54% 52% 50% 46% 44% 42% 41% 39% 38% 36% 34% 33% 32% 30% 29% 27% 26% 25% 24% 22% 21%Change in Total Sewer Rate 35% -3% -3% -8% -2% -2% -2% -2% -2% -2% -2% -2% -2% -1% -1% -1% -1% -1% -1% -1% -1%

Total Sewer Rate - Adjusted $510.00 $495.00 $480.00 $442.00 $432.00 $422.00 $413.00 $405.00 $397.00 $390.00 $383.00 $377.00 $371.00 $366.00 $361.00 $357.00 $352.00 $348.00 $345.00 $341.00 $338.00WW Rate as % of Water Rate: 54% 52% 50% 46% 44% 42% 41% 39% 38% 36% 34% 33% 32% 30% 29% 28% 26% 25% 24% 22% 21%Change in Total Sewer Rate 36% -3% -3% -8% -2% -2% -2% -2% -2% -2% -2% -2% -2% -1% -1% -1% -1% -1% -1% -1% -1%

Total Water & Wastewater $1,457.30 $1,441.56 $1,434.82 $1,407.54 $1,410.69 $1,416.29 $1,425.36 $1,437.93 $1,453.05 $1,471.78 $1,493.19 $1,518.37 $1,546.41 $1,578.42 $1,613.53 $1,652.87 $1,694.57 $1,746.90 $1,804.67 $1,866.11 $1,933.50Change in Total W & WW Rates 33% -1% 0% -2% 0% 0% 1% 1% 1% 1% 1% 2% 2% 2% 2% 2% 3% 3% 3% 3% 4%

C. Using Findings of Condition Assessment 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Water Flat Rate / Taux d'Eau Fixe $416.04 $410.09 $401.86 $388.26 $379.32 $370.98 $363.19 $355.91 $349.09 $342.70 $336.71 $331.08 $325.79 $320.82 $316.14 $311.74 $307.59 $303.69 $300.01 $296.55 $293.28Water Flat Rate - Adjusted $419.00 $411.00 $402.00 $389.00 $380.00 $371.00 $364.00 $356.00 $350.00 $343.00 $337.00 $332.00 $326.00 $321.00 $317.00 $312.00 $308.00 $304.00 $301.00 $297.00 $294.00

Water Variable Rate / Taux d'Eau Variable $369.29 $391.45 $414.93 $439.83 $466.22 $494.19 $523.84 $555.27 $588.59 $623.91 $661.34 $701.02 $743.08 $787.67 $834.93 $885.02 $938.12 $1,000.51 $1,067.01 $1,137.88 $1,213.42Total Water Rate $785.33 $801.54 $816.79 $828.09 $845.54 $865.17 $887.04 $911.19 $937.68 $966.61 $998.05 $1,032.10 $1,068.87 $1,108.48 $1,151.07 $1,196.76 $1,245.71 $1,304.20 $1,367.02 $1,434.43 $1,506.71Total Water Rate - Adjusted $788.29 $802.45 $816.93 $828.83 $846.22 $865.19 $887.84 $911.27 $938.59 $966.91 $998.34 $1,033.02 $1,069.08 $1,108.67 $1,151.93 $1,197.02 $1,246.12 $1,304.51 $1,368.01 $1,434.88 $1,507.42

Change in Flat Rate -3% -1% -2% -3% -2% -2% -2% -2% -2% -2% -2% -2% -2% -2% -1% -1% -1% -1% -1% -1% -1%Change in Flat Rate - Adjusted -2% -2% -2% -3% -2% -2% -2% -2% -2% -2% -2% -1% -2% -2% -1% -2% -1% -1% -1% -1% -1%Change in Variable Rate 25% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 7% 7% 7% 7%Change in Total Water Rate 9% 2% 2% 1% 2% 2% 3% 3% 3% 3% 3% 3% 4% 4% 4% 4% 4% 5% 5% 5% 5%Change in Total Water Rate - Adjusted 9% 2% 2% 1% 2% 2% 3% 3% 3% 3% 3% 3% 3% 4% 4% 4% 4% 5% 5% 5% 5%

Total Sewer Flat Rate $352.79 $349.05 $339.64 $306.95 $301.22 $295.97 $291.18 $286.80 $282.79 $279.11 $275.75 $272.67 $269.86 $267.29 $264.95 $262.82 $260.89 $259.15 $257.57 $256.16 $254.91WW Rate as % of Water Rate: 45% 44% 42% 37% 36% 34% 33% 31% 30% 29% 28% 26% 25% 24% 23% 22% 21% 20% 19% 18% 17%Change in Total Sewer Rate -6% -1% -3% -10% -2% -2% -2% -2% -1% -1% -1% -1% -1% -1% -1% -1% -1% -1% -1% -1% 0%

Total Sewer Rate - Adjusted $353.00 $350.00 $340.00 $307.00 $302.00 $296.00 $292.00 $287.00 $283.00 $280.00 $276.00 $273.00 $270.00 $268.00 $265.00 $263.00 $261.00 $260.00 $258.00 $257.00 $255.00WW Rate as % of Water Rate: 45% 44% 42% 37% 36% 34% 33% 31% 30% 29% 28% 26% 25% 24% 23% 22% 21% 20% 19% 18% 17%Change in Total Sewer Rate -6% -1% -3% -10% -2% -2% -1% -2% -1% -1% -1% -1% -1% -1% -1% -1% -1% 0% -1% 0% -1%

Total Water & Wastewater $1,138.33 $1,151.54 $1,156.79 $1,135.09 $1,147.54 $1,161.17 $1,179.04 $1,198.19 $1,220.68 $1,246.61 $1,274.05 $1,305.10 $1,338.87 $1,376.48 $1,416.07 $1,459.76 $1,506.71 $1,564.20 $1,625.02 $1,691.43 $1,761.71Change in Total W & WW Rates 4% 1% 0% -2% 1% 1% 2% 2% 2% 2% 2% 2% 3% 3% 3% 3% 3% 4% 4% 4% 4%


$39.51 $13.21 $5.26 -$21.70 $12.45 $13.63 $17.86 $19.15 $22.50 $25.93 $27.44 $31.05 $33.77 $37.61 $39.58 $43.69 $46.96 $57.48 $60.82 $66.41 $70.28REVENUE AND EXPENDITURE BREAKDOWN

Revenues from Fees 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Hemson's Approach - Water $3,570,328 $3,803,836 $4,078,990 $4,368,505 $4,673,462 $4,905,020 $5,154,423 $5,423,005 $5,712,196 $6,023,528 $6,358,644 $6,719,307 $7,107,403 $7,524,956 $7,974,132 $8,457,253 $8,976,807 $9,578,033 $10,228,322 $10,931,551 $11,691,891AMP's Approach - Water $4,114,751 $4,258,259 $4,443,413 $4,642,928 $4,857,884 $5,089,443 $5,338,846 $5,607,428 $5,896,618 $6,207,950 $6,543,067 $6,903,730 $7,291,826 $7,709,379 $8,158,555 $8,641,676 $9,161,230 $9,762,455 $10,412,745 $11,115,973 $11,876,314Using Findings of Condition Assessment -Water Fixed $1,807,139 $1,844,850 $1,870,121 $1,867,023 $1,882,817 $1,898,927 $1,915,359 $1,932,120 $1,949,216 $1,966,654 $1,984,440 $2,002,583 $2,021,088 $2,039,963 $2,059,216 $2,078,854 $2,098,884 $2,119,317 $2,140,157 $2,161,415 $2,183,098

Using Findings of Condition Assessment -Water Variable $1,604,060 $1,760,978 $1,930,951 $2,114,981 $2,314,144 $2,529,592 $2,762,564 $3,014,385 $3,286,480 $3,580,374 $3,897,704 $4,240,224 $4,609,816 $5,008,493 $5,438,416 $5,901,899 $6,401,423 $6,982,216 $7,611,664 $8,293,635 $9,032,294

Hemson's Approach - Wastewater $1,632,798 $1,755,085 $1,849,476 $1,845,302 $1,948,372 $1,973,023 $1,994,575 $2,022,635 $2,043,256 $2,071,315 $2,097,205 $2,120,924 $2,148,053 $2,173,322 $2,202,620 $2,230,368 $2,262,766 $2,287,569 $2,317,332 $2,352,519 $2,379,956AMP's Approach - Wastewater $1,896,873 $1,917,808 $1,934,092 $1,849,487 $1,874,603 $1,896,619 $1,920,185 $1,945,765 $1,968,865 $1,994,600 $2,018,164 $2,044,983 $2,069,942 $2,098,775 $2,126,059 $2,157,836 $2,182,174 $2,211,317 $2,245,729 $2,272,546 $2,304,943Using Findings of Condition Assessment -Wastewater $1,312,934 $1,574,526 $1,582,239 $1,476,254 $1,499,021 $1,515,119 $1,539,904 $1,558,021 $1,580,172 $1,606,821 $1,626,646 $1,651,280 $1,674,984 $1,704,117 $1,726,116 $1,753,854 $1,780,971 $1,814,448 $1,840,480 $1,873,182 $1,898,130

Debt Repayment: End Date 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Ottawa Supply Debt March 2041 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177Russell Pumping Station 2017 $106,387 $106,387 $106,387TOTAL $997,564 $997,564 $997,564 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177 $891,177

O&M: 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Water $1,181,874 $1,157,471 $1,180,621 $1,204,233 $1,228,318 $1,252,884 $1,277,942 $1,303,501 $1,329,571 $1,356,162 $1,383,286 $1,410,951 $1,439,170 $1,467,954 $1,497,313 $1,527,259 $1,557,804 $1,588,960 $1,620,740 $1,653,154 $1,686,217Sewer $1,074,146 $1,095,629 $1,111,834 $1,134,071 $1,156,752 $1,179,887 $1,203,485 $1,227,554 $1,252,106 $1,277,148 $1,302,691 $1,328,744 $1,355,319 $1,382,426 $1,410,074 $1,438,276 $1,467,041 $1,496,382 $1,526,310 $1,556,836 $1,587,973TOTAL $2,256,020 $2,253,100 $2,292,455 $2,338,304 $2,385,070 $2,432,771 $2,481,427 $2,531,055 $2,581,676 $2,633,310 $2,685,976 $2,739,696 $2,794,490 $2,850,379 $2,907,387 $2,965,535 $3,024,845 $3,085,342 $3,147,049 $3,209,990 $3,274,190

Capital Asset Replacement (Hemson's Approach): 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Water $540,000 $630,000 $720,000 $810,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 $900,000Sewer $480,000 $560,000 $640,000 $720,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000TOTAL $1,020,000 $1,190,000 $1,360,000 $1,530,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000 $1,700,000

Capital Asset Replacement (AMP's Approach): 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Water $837,743 $1,055,796 $1,049,457 $1,057,977 $1,044,220 $1,073,024 $1,073,024 $1,073,024 $1,073,024 $1,073,008 $1,073,046 $1,073,046 $1,024,885 $1,111,869 $1,111,869 $1,026,525 $1,180,667 $1,180,467 $1,180,828 $1,165,003 $1,234,379Sewer $684,601 $693,973 $692,947 $694,136 $694,136 $666,513 $706,553 $718,830 $720,164 $720,164 $720,164 $720,164 $719,986 $720,765 $720,765 $694,684 $740,704 $742,665 $742,665 $742,665 $742,665TOTAL $1,522,344 $1,749,769 $1,742,404 $1,752,113 $1,738,356 $1,739,537 $1,779,577 $1,791,853 $1,793,188 $1,793,172 $1,793,210 $1,793,210 $1,744,871 $1,832,635 $1,832,635 $1,721,209 $1,921,371 $1,923,132 $1,923,493 $1,907,668 $1,977,044Water Average (2015 - 2031)Sewer Average (2015 - 2031)

Capital Asset Replacement (Using Findingsof Condition Assessment): 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Water $630,000 $91,000 $130,000 $32,500 $33,500 $39,500 $192,500 $30,000 $30,000 $971,100 $521,700 $1,517,900 $30,000 $173,100 $2,624,300 $103,600 $639,200 $55,600 $209,900 $630,000 $208,100Sewer $92,900 $189,000 $124,000 $52,000 $90,500 $32,000 $292,000 $327,000 $282,000 $483,000 $282,000 $352,000 $252,000 $232,000 $62,000 $32,000 $32,000 $32,000 $32,000 $32,000 $52,000TOTAL $722,900 $280,000 $254,000 $84,500 $124,000 $71,500 $484,500 $357,000 $312,000 $1,454,100 $803,700 $1,869,900 $282,000 $405,100 $2,686,300 $135,600 $671,200 $87,600 $241,900 $662,000 $260,100Water Average (2015 - 2031)Sewer Average (2015 - 2031)

Annual Consumption Charges: 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Charge per Volume Ottawa ($/m3) 1.699 1.801 1.909 2.024 2.145 2.274 2.410 2.555 2.708 2.871 3.043 3.226 3.419 3.624 3.842 4.072 4.317 4.576 4.850 5.141 5.450Volume billed by Ottawa (m3) 926,022 977,706 1,011,392 1,045,079 1,078,766 1,112,452 1,146,139 1,179,826 1,213,512 1,247,199 1,280,886 1,314,572 1,348,259 1,381,946 1,415,632 1,449,319 1,483,006 1,525,997 1,569,402 1,613,220 1,657,452Water Supply Charge from Ottawa $1,604,060 $1,760,978 $1,930,951 $2,114,981 $2,314,144 $2,529,592 $2,762,564 $3,014,385 $3,286,480 $3,580,374 $3,897,704 $4,240,224 $4,609,816 $5,008,493 $5,438,416 $5,901,899 $6,401,423 $6,982,216 $7,611,664 $8,293,635 $9,032,294

Assumed Annual Volumetric Charge perUnit $369.29 $391.45 $414.93 $439.83 $466.22 $494.19 $523.84 $555.27 $588.59 $623.91 $661.34 $701.02 $743.08 $787.67 $834.93 $885.02 $938.12 $1,000.51 $1,067.01 $1,137.88 $1,213.42


Water 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Check Rate Revenue $1,807,139 $1,844,850 $1,870,121 $1,867,023 $1,882,817 $1,898,927 $1,915,359 $1,932,120 $1,949,216 $1,966,654 $1,984,440 $2,002,583 $2,021,088 $2,039,963 $2,059,216 $2,078,854 $2,098,884 $2,119,317 $2,140,157 $2,161,415 $2,183,098Break Even Scenario Expenditures $1,807,139 $1,844,850 $1,870,121 $1,867,023 $1,882,817 $1,898,927 $1,915,359 $1,932,120 $1,949,216 $1,966,654 $1,984,440 $2,002,583 $2,021,088 $2,039,963 $2,059,216 $2,078,854 $2,098,884 $2,119,317 $2,140,157 $2,161,415 $2,183,098

Surplus/Deficit $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Water 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Rate Revenue $1,819,987 $1,848,943 $1,870,765 $1,870,563 $1,886,185 $1,899,017 $1,919,607 $1,932,598 $1,954,276 $1,968,355 $1,986,158 $2,008,150 $2,022,388 $2,041,125 $2,064,826 $2,080,617 $2,101,683 $2,121,508 $2,147,227 $2,164,728 $2,188,432

Adjusted Scenario Expenditures $1,807,139 $1,844,850 $1,870,121 $1,867,023 $1,882,817 $1,898,927 $1,915,359 $1,932,120 $1,949,216 $1,966,654 $1,984,440 $2,002,583 $2,021,088 $2,039,963 $2,059,216 $2,078,854 $2,098,884 $2,119,317 $2,140,157 $2,161,415 $2,183,098Surplus/Deficit $12,848.13 $4,092.77 $644.24 $3,539.56 $3,367.77 $90.09 $4,247.52 $477.65 $5,059.86 $1,701.51 $1,718.05 $5,567.50 $1,300.46 $1,161.96 $5,609.60 $1,763.54 $2,798.37 $2,191.59 $7,069.82 $3,312.62 $5,333.93

Sewer 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Break Even Scenario Rate Revenue $1,312,162 $1,352,344 $1,368,549 $1,284,399 $1,307,081 $1,330,216 $1,353,813 $1,377,883 $1,402,434 $1,427,476 $1,453,019 $1,479,073 $1,505,648 $1,532,754 $1,560,403 $1,588,604 $1,617,370 $1,646,711 $1,676,638 $1,707,164 $1,738,301

Expenditures $1,312,162 $1,352,344 $1,368,549 $1,284,399 $1,307,081 $1,330,216 $1,353,813 $1,377,883 $1,402,434 $1,427,476 $1,453,019 $1,479,073 $1,505,648 $1,532,754 $1,560,403 $1,588,604 $1,617,370 $1,646,711 $1,676,638 $1,707,164 $1,738,301Surplus/Deficit $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Sewer 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Rate Revenue $1,312,934 $1,356,026 $1,369,982 $1,284,598 $1,310,486 $1,330,330 $1,357,613 $1,378,851 $1,403,499 $1,432,020 $1,454,343 $1,480,850 $1,506,427 $1,536,808 $1,560,680 $1,589,666 $1,618,033 $1,652,133 $1,679,415 $1,712,740 $1,738,936

Adjusted Scenario Expenditures $1,312,162 $1,352,344 $1,368,549 $1,284,399 $1,307,081 $1,330,216 $1,353,813 $1,377,883 $1,402,434 $1,427,476 $1,453,019 $1,479,073 $1,505,648 $1,532,754 $1,560,403 $1,588,604 $1,617,370 $1,646,711 $1,676,638 $1,707,164 $1,738,301Surplus/Deficit $772.07 $3,681.08 $1,432.55 $199.03 $3,405.82 $114.63 $3,799.46 $967.97 $1,064.45 $4,544.26 $1,323.87 $1,776.98 $779.02 $4,053.92 $277.33 $1,062.13 $662.90 $5,422.71 $2,776.36 $5,575.80 $635.37

MEMORANDUM

SERVICES

Demographics, Pupil Forecasting,Industrial/Commercial Forecasts

Development/EducationDevelopment Charge Policy

Financial Analysis ofMunicipal RestructuringOptions

Fiscal Impact of Development

Land Needs and Market Studies Long Range FinancialPlanning for Municipalities

Municipal ManagementImprovement

OMB Hearings – Financial,Market, Demographic

School Board Planning andFinancing

Servicing Cost Sharing Tax Policy Analysis Waste Management RateSetting, Valuation and Planning

Plaza Three101-2000 Argentia Rd.

Mississauga, OntarioCanada L5N 1V9

Phone: (905) 272-3600Fax: (905) 272-3602

e-mail: [email protected]

H:\Russell\Water Review\Cullen-2015-02-02.docx

To: Craig Cullen Fax

From: Andrew Grunda Courier

Date: February 13, 2015 Mail

Re: Russell Water and Wastewater Rate Study Peer Review e-mail

The Township retained Watson & Associates Economists Ltd. (Watson) to undertake a peer review ofthe water and wastewater rate projections prepared by WSP Canada Inc. (WSP). In addition to thisreview Watson was also asked to comment on the debt repayment for the Ottawa Water Supply projectfrom existing and future residents.

With respect to the first item, Watson has reviewed the water model prepared by WSP (Approach 2) forthe Capital Asset Replacement Scenario using findings of the condition assessment. Based on ourreview the calculations are undertaken correctly, consistent with the Township’s existing rate structureand we realize virtually identical rate projection results (differences due to rounding). There are howevera few assumptions that should be noted:

1. The condition assessment provides the total lifecycle replacement capital needs required for theperiod 2015-2031 and the annual transfer to reserves (i.e. annual capital-related lifecycle needs)has been estimated at this average annual amount. Based on these assumptions the capitalneeds for the period 2014-2024 would be fully funded from rate based revenues and theTownship’s water and wastewater reserves would increase to approximately $4.9 million by2024 (i.e. $3.9 million for water and $1.0 million for wastewater). It is unclear if the annualcapital-related lifecycle needs would be sufficient to meet annual capital needs over the longterm (i.e. asset useful life) or if this would need to be increased or decreased in the future. Assuch, it is difficult to determine whether the projected 2024 reserve fund balances aresustainable.

2. In 2013 and 2014 unaccounted for water (i.e. difference between water purchased from Ottawaand water consumed by Township customers) was approximately 29% of water purchased fromOttawa. WSP assumes that this will be reduced to 25% commencing in 2015 and remainingconstant over the forecast period. We have used the same assumptions for the purpose of ourcalculations. This should be monitored regularly as the variable fee and wastewater feecomponents could be impacted.

Watson & Associates Economists Ltd. 2.


3. Our projections are based on the Township’s DC Study for residential and non-residentialgrowth in both the water and wastewater service areas. Our projections have also beenweighted to reflect the residential equivalents resulting from the Township’s existing ratestructure (e.g. lower fixed charge rates for apartment dwellings). Given the significance offunding from the fixed flat rate charge the amount and type of growth should be monitored asthis could influence future recovery levels.

The following tables summarize the impacts of the Watson and WSP projections for water andwastewater services based on average annual consumption of 163 m3. As noted previously the rateprojections are virtually identical. Based on the following, the 2015 annual bill for water and wastewaterservices would be $1,149 under both the Watson and WSP projections. By 2024, the Watsonprojections total $1,255 annually, compared with projections of $1,258 annually by WSP, with minimalvariance due to rounding.

With respect to the second item, i.e. the treatment of the Ottawa Water Supply debt payments, we wereasked to review the current funding plan. Under the Township’s current funding plan 70% of the annualdebt payment is recovered from water customers through the annual fixed rate component and theremaining 30% is recovered from future growth through DC payments. The amount funded from existingratepayers and future growth was determined in the Township’s 2009 DC Background Study reflectingthe benefits conferred on the respective parties by the works constructed. The issue in question is thetreatment of the existing ratepayer cost share and whether this amount was to be recovered solely fromthe existing water customers at the time of asset emplacement, and over the term of the debt, or whetherthis amount was to be included in the annual water budget for repayment from future water raterevenues.

Water Rate ForecastInflated $

Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Water Billing Recovery (Exl. Ottawa Supply Charges) 1,817,639 1,844,792 1,870,121 1,893,689 1,915,557 1,935,782 1,954,423 1,971,534 1,987,170 2,001,383Residential Equivalents 4,344 4,499 4,654 4,810 4,965 5,120 5,275 5,431 5,586 5,741Flat Fee 427.00 418.43 410.02 401.79 393.72 385.81 378.07 370.47 363.03 355.74 348.60Annual Percentage Change -2% -2% -2% -2% -2% -2% -2% -2% -2%

Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Ottawa Supply Charges 1,592,539 1,748,862 1,918,210 2,101,584 2,300,057 2,514,781 2,746,992 2,998,015 3,269,272 3,562,286Water Consumption (m3) 702,930 728,235 753,540 778,845 804,150 829,455 854,760 880,065 905,370 930,675Consumptive Rate 1.81 2.27 2.40 2.55 2.70 2.86 3.03 3.21 3.41 3.61 3.83Annual Percentage Change 6% 6% 6% 6% 6% 6% 6% 6% 6%

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Total (Based on 163 m3/year) 722 788 801 817 834 852 872 894 918 944 973Annual Percentage Change 9% 2% 2% 2% 2% 2% 3% 3% 3% 3%

WSP PROJECTIONS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Total (Based on 163 m3/year) 722 788 802 817 836 853 872 894 918 945 973Annual Percentage Change 9% 2% 2% 2% 2% 2% 2% 3% 3% 3%

Wastewater Rate ForecastInflated $

Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Total Wastewater Billing Recovery 1,341,062 1,361,945 1,377,550 1,292,800 1,314,881 1,337,416 1,360,414 1,383,884 1,407,835 1,432,177Residential Equivalents 3,717 3,867 4,017 4,168 4,318 4,468 4,618 4,769 4,919 5,069Flat Fee 377 361 352 343 310 305 299 295 290 286 283Annual Percentage Increase -4% -2% -3% -10% -2% -2% -2% -1% -1% -1%Flat Fee as a Percentage of Total Water Bill (163 m3/customer) 46% 44% 42% 37% 36% 34% 33% 32% 30% 29%

WSP PROJECTIONS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Flat Fee 377 361 357 347 314 308 303 298 293 289 285Annual Percentage Increase -4% -1% -3% -10% -2% -2% -2% -2% -1% -1%Flat Fee as a Percentage of Total Water Bill (163 m3/customer) 46% 44% 42% 38% 36% 35% 33% 32% 31% 29%

Watson & Associates Economists Ltd. 3.


Based on our review of the background materials from the 2010 Water and Sewer Rate Study preparedby Hemson Consulting, the existing ratepayer cost share of the Ottawa Water Supply debt appears to beincluded for recovery form the annual fixed rate revenues of the water system. Moreover, if the initialcapital costs for the existing ratepayers were only intended to be recovered from the existing ratepayersat that point in time over the duration of the debt term, the by-law would typically include a reference tothe existing properties with an associated capital charge for each property. This would ensure thefunding from these properties in the future and in the case of default. Based on the information providedno such provisions appear to be included in the water rate bylaw. As such, based on our review theTownship’s current practice of recovering the existing ratepayer portion of the annual debt payments forthe Ottawa Water Supply project from annual water revenues is appropriate.

We trust this memo and attached calculations satisfactorily address the Township’s request in thisregard. However should further efforts be required, please do not hesitate to contact us at your earliestconvenience.

Table 1Township of Russell

System User ForecastWater Users Forecast

Year ResidentialEquivalent Users 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2015 155 78 155 155 155 155 155 155 155 155 1552016 155 78 155 155 155 155 155 155 155 1552017 155 78 155 155 155 155 155 155 1552018 155 78 155 155 155 155 155 1552019 155 78 155 155 155 155 1552020 155 78 155 155 155 1552021 155 78 155 155 1552022 155 78 155 1552023 155 78 1552024 155 78Total 1,552 78 233 388 544 699 854 1,009 1,165 1,320 1,475

m3/user 163 163 163 163 163 163 163 163 163 163 163Annual Flow 12,714 38,019 63,324 88,629 113,934 139,239 164,544 189,849 215,154 240,459

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Existing 4,266 4,266 4,266 4,266 4,266 4,266 4,266 4,266 4,266 4,266New - Growth 78 233 388 544 699 854 1,009 1,165 1,320 1,475Total 4,344 4,499 4,654 4,810 4,965 5,120 5,275 5,431 5,586 5,741

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Existing 690,216 690,216 690,216 690,216 690,216 690,216 690,216 690,216 690,216 690,216New 12,714 38,019 63,324 88,629 113,934 139,239 164,544 189,849 215,154 240,459Total 702,930 728,235 753,540 778,845 804,150 829,455 854,760 880,065 905,370 930,675

Wastewater Users Forecast

Year ResidentialEquivalent Users 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2015 150 75 150 150 150 150 150 150 150 150 1502016 150 75 150 150 150 150 150 150 150 1502017 150 75 150 150 150 150 150 150 1502018 150 75 150 150 150 150 150 1502019 150 75 150 150 150 150 1502020 150 75 150 150 150 1502021 150 75 150 150 1502022 150 75 150 1502023 150 75 1502024 150 75Total 1,502 75 225 375 526 676 826 976 1,127 1,277 1,427

m3/user 163 163 163 163 163 163 163 163 163 163 163Annual Flow 12,225 36,715 61,205 85,695 110,185 134,675 159,165 183,655 208,145 232,635

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Existing 3,642 3,642 3,642 3,642 3,642 3,642 3,642 3,642 3,642 3,642New - Growth 75 225 375 526 676 826 976 1,127 1,277 1,427Total 3,717 3,867 4,017 4,168 4,318 4,468 4,618 4,769 4,919 5,069

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Existing 587,754 587,754 587,754 587,754 587,754 587,754 587,754 587,754 587,754 587,754New 12,225 36,715 61,205 85,695 110,185 134,675 159,165 183,655 208,145 232,635Total 599,979 624,469 648,959 673,449 697,939 722,429 746,919 771,409 795,899 820,389Note: Above flows are water flows on which the wastewater billing will be calculated

Water Customer Forecast

Water Consumption Forecast (m³)

Wastewater Customer Forecast

Wastewater Flows Forecast (m³)

Watson & Associates Economists Ltd. Russell 2015 Water and Wastewater Model Peer Review.xlsx.xls


Water ServiceCapital Budget Forecast

Inflated $

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Capital ExpendituresAsset Replacement 2,419,000 630,000 93,000 135,000 34,000 36,000 44,000 217,000 34,000 35,000 1,161,000Reservoir Expansion Stage 1 (DC) 3,745,000 - - 3,745,000 - - - - - - -Total Capital Expenditures 6,164,000 630,000 93,000 3,880,000 34,000 36,000 44,000 217,000 34,000 35,000 1,161,000

Capital FinancingProvincial/Federal Grants - - - -Development Charges Reserve Fund 1,671,137 - - 1,671,137 - - - - - - -Non-Growth Related Debenture Requirements - - - - - - - - - - -Growth Related Debenture Requirements 2,073,863 - - 2,073,863 - - - - - - -Operating Contributions - - - - - - - - - - -Water Reserve 2,419,000 630,000 93,000 135,000 34,000 36,000 44,000 217,000 34,000 35,000 1,161,000Total Capital Financing 6,164,000 630,000 93,000 3,880,000 34,000 36,000 44,000 217,000 34,000 35,000 1,161,000


Water ServiceSchedule of Non-Growth Related Debenture Repayments

Inflated $

Debenture PrincipalYear (Inflated) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20242015 - - - - - - - - - -2016 - - - - - - - - -2017 - - - - - - - -2018 - - - - - - -2019 - - - - - -2020 - - - - -2021 - - - -2022 - - -2023 - -2024 -

Total Annual Debt Charges - - - - - - - - - - -

Description TotalForecast

Forecast



Water ServiceSchedule of Growth Related Debenture Repayments

Inflated $

Debenture PrincipalYear (Inflated) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20242015 - - - - - - - - - -2016 - - - - - - - - -2017 2,073,863 138,753 138,753 138,753 138,753 138,753 138,753 138,7532018 - - - - - - -2019 - - - - - -2020 - - - - -2021 - - - -2022 - - -2023 - -2024 -

Total Annual Debt Charges 2,073,863 - - - 138,753 138,753 138,753 138,753 138,753 138,753 138,753


Water ServiceWater Reserves/ Reserve Funds Continuity

Inflated $

Description 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Opening Balance 1,139,925 917,520 1,294,147 1,649,266 2,127,395 2,624,063 3,131,631 3,478,510 4,024,647 4,584,635Transfer from Operating 380,871 431,933 442,082 450,166 456,239 460,355 462,564 462,914 461,454 458,229Transfer to Capital 630,000 93,000 135,000 34,000 36,000 44,000 217,000 34,000 35,000 1,161,000Transfer to Operating - - - - - - - - - -Closing Balance 890,796 1,256,453 1,601,229 2,065,432 2,547,634 3,040,418 3,377,194 3,907,425 4,451,102 3,881,864Interest 26,724 37,694 48,037 61,963 76,429 91,213 101,316 117,223 133,533 116,456


Water ServiceWater Development Charges Reserve Fund Continuity

Inflated $

Description 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Opening Balance (523,649) 178,156 925,838 - 486,258 1,177,757 1,916,870 2,705,564 3,545,873 4,439,906Development Charge Proceeds 1,205,013 1,229,113 1,253,696 1,278,770 1,304,345 1,330,432 1,357,041 1,384,181 1,411,865 1,440,102Transfer to Capital - - 1,671,137 - - - - - - -Transfer to Operating 508,397 508,397 508,397 647,150 647,150 647,150 647,150 647,150 647,150 647,150Transfer to Interim Financing Source - - - 159,525 - - - - - -Closing Balance 172,967 898,872 - 472,095 1,143,453 1,861,039 2,626,761 3,442,595 4,310,588 5,232,858Interest 5,189 26,966 - 14,163 34,304 55,831 78,803 103,278 129,318 156,986Required from Development Charges - - 3,745,000 - - - - - - -

Forecast



Water ServicesOperating Budget Forecast

Inflated $

Description 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024ExpendituresOperating Costs - - - - - - - - -Salaries, Benefits, Materials & Supplies, S&L, S&R, S&F 1,181,874 1,157,471 1,180,621 1,204,233 1,228,318 1,252,884 1,277,942 1,303,501 1,329,571 1,356,162Feedermain Service Agreement 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

- - - - - - - - -Sub Total Operating 1,211,874 1,187,471 1,210,621 1,234,233 1,258,318 1,282,884 1,307,942 1,333,501 1,359,571 1,386,162Capital-RelatedExisting Debt (Principal) - Growth Related 243,208 252,060 261,252 270,797 280,710 291,007 301,702 312,812 324,355 336,347Existing Debt (Interest) - Growth Related 265,189 256,337 247,146 237,600 227,687 217,391 206,695 195,585 184,043 172,050New Growth Related Debt (Principal) - - - 77,574 79,862 82,218 84,643 87,140 89,711 92,358New Growth Related Debt (Interest) - - - 61,179 58,891 56,535 54,109 51,612 49,042 46,395Existing Debt (Principal) - Non-Growth Related 177,329 186,034 195,166 204,746 214,797 225,341 236,402 248,007 260,181 272,953Existing Debt (Interest) - Non-Growth Related 446,495 437,790 428,658 419,078 409,028 398,484 387,422 375,817 363,643 350,872New Non-Growth Related Debt (Principal) - - - - - - - - - -New Non-Growth Related Debt (Interest) - - - - - - - - - -Transfer to Capital - - - - - - - - - -Transfer to Capital Reserve 380,871 431,933 442,082 450,166 456,239 460,355 462,564 462,914 461,454 458,229Sub Total Capital Related 1,513,092 1,564,155 1,574,304 1,721,140 1,727,213 1,731,329 1,733,538 1,733,888 1,732,428 1,729,203Total Expenditures 2,724,966 2,751,626 2,784,924 2,955,373 2,985,531 3,014,213 3,041,480 3,067,389 3,091,999 3,115,366

Ottawa Water SupplyConsumptive Charge ($/m3) 1.70 1.80 1.91 2.02 2.15 2.27 2.41 2.55 2.71 2.87Consumption 937,240 970,980 1,004,720 1,038,460 1,072,200 1,105,940 1,139,680 1,173,420 1,207,160 1,240,900Water Supply Charge 1,592,539 1,748,862 1,918,210 2,101,584 2,300,057 2,514,781 2,746,992 2,998,015 3,269,272 3,562,286Total 1,592,539 1,748,862 1,918,210 2,101,584 2,300,057 2,514,781 2,746,992 2,998,015 3,269,272 3,562,286

RevenuesFire Protection 226,480 231,010 235,630 240,342 245,149 250,052 255,053 260,154 265,357 270,665Other Revenues 172,450 167,428 170,776 174,192 177,676 181,229 184,854 188,551 192,322 196,168Contributions from Development Charges Reserve Fund 508,397 508,397 508,397 647,150 647,150 647,150 647,150 647,150 647,150 647,150Contributions from Reserves / Reserve Funds - - - - - - - - - -Total Operating Revenue 907,327 906,834 914,803 1,061,684 1,069,975 1,078,431 1,087,057 1,095,855 1,104,829 1,113,983

Water Billing Recovery - Total 1,817,639 1,844,792 1,870,121 1,893,689 1,915,557 1,935,782 1,954,423 1,971,534 1,987,170 2,001,383

Forecast



Water ServicesWater Rate Forecast

Inflated $

Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Water Billing Recovery (Exl. Ottawa Supply Charges) 1,817,639 1,844,792 1,870,121 1,893,689 1,915,557 1,935,782 1,954,423 1,971,534 1,987,170 2,001,383Residential Equivalents 4,344 4,499 4,654 4,810 4,965 5,120 5,275 5,431 5,586 5,741Flat Fee 427.00 418.43 410.02 401.79 393.72 385.81 378.07 370.47 363.03 355.74 348.60Annual Percentage Change -2% -2% -2% -2% -2% -2% -2% -2% -2%

Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Ottawa Supply Charges 1,592,539 1,748,862 1,918,210 2,101,584 2,300,057 2,514,781 2,746,992 2,998,015 3,269,272 3,562,286Water Consumption (m3) 702,930 728,235 753,540 778,845 804,150 829,455 854,760 880,065 905,370 930,675Consumptive Rate 1.81 2.27 2.40 2.55 2.70 2.86 3.03 3.21 3.41 3.61 3.83Annual Percentage Change 6% 6% 6% 6% 6% 6% 6% 6% 6%

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Total (Based on 163 m3/year) 722 788 801 817 834 852 872 894 918 944 973Annual Percentage Change 9% 2% 2% 2% 2% 2% 3% 3% 3% 3%

WSP PROJECTIONS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Total (Based on 163 m3/year) 722 788 802 817 836 853 872 894 918 945 973Annual Percentage Change 9% 2% 2% 2% 2% 2% 2% 3% 3% 3%


Table 9Township of RussellWastewater Service

Capital Budget ForecastInflated $

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Capital ExpendituresAsset Replacement 2,215,000 93,000 193,000 129,000 55,000 98,000 35,000 329,000 376,000 330,000 577,000Total Capital Expenditures 2,215,000 93,000 193,000 129,000 55,000 98,000 35,000 329,000 376,000 330,000 577,000

Capital FinancingProvincial/Federal Grants -Development Charges Reserve Fund - - - - - - - - - - -Non-Growth Related Debenture Requirements - - - - - - - - - - -Growth Related Debenture Requirements - - - - - - - - - - -Operating Contributions - - - - - - - - - - -Wastewater Reserve 2,215,000 93,000 193,000 129,000 55,000 98,000 35,000 329,000 376,000 330,000 577,000Total Capital Financing 2,215,000 93,000 193,000 129,000 55,000 98,000 35,000 329,000 376,000 330,000 577,000


Schedule of Non-Growth Related Debenture RepaymentsInflated $



Description TotalForecast

Forecast



Schedule of Growth Related Debenture RepaymentsInflated $




Wastewater Reserves/ Reserve Funds ContinuityInflated $

Description 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Opening Balance 977,559 1,105,487 1,134,253 1,229,802 1,404,437 1,540,022 1,744,564 1,652,422 1,509,106 1,408,870Transfer from Operating 188,729 188,729 188,729 188,729 188,729 188,729 188,729 188,729 188,729 188,729Transfer to Capital 93,000 193,000 129,000 55,000 98,000 35,000 329,000 376,000 330,000 577,000Transfer to Operating - - - - - - - - - -Closing Balance 1,073,288 1,101,217 1,193,982 1,363,531 1,495,167 1,693,751 1,604,293 1,465,151 1,367,835 1,020,600Interest 32,199 33,036 35,819 40,906 44,855 50,813 48,129 43,955 41,035 30,618


Wastewater Development Charges Reserve Fund ContinuityInflated $

Description 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Opening Balance (109,578) - - - - 67,177 586,975 1,141,812 1,733,126 2,362,409Development Charge Proceeds 854,895 871,993 889,433 907,222 925,366 943,873 962,751 982,006 1,001,646 1,021,679Transfer to Capital - - - - - - - - - -Transfer to Operating 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171Transfer to Interim Financing Source 304,146 430,822 448,262 466,051 418,975 - - - - -Closing Balance - - - - 65,220 569,879 1,108,555 1,682,646 2,293,601 2,942,917Interest - - - - 1,957 17,096 33,257 50,479 68,808 88,287Required from Development Charges - - - - - - - - - -

Forecast


Table 14Township of RussellWastewater Services

Operating Budget ForecastInflated $

Description 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024ExpendituresOperating CostsSalaries, Benefits, Materials & Supplies, S&L, S&R, S&F 1,074,146 1,095,629 1,111,834 1,134,071 1,156,752 1,179,887 1,203,485 1,227,554 1,252,106 1,277,148Sub Total Operating 1,074,146 1,095,629 1,111,834 1,134,071 1,156,752 1,179,887 1,203,485 1,227,554 1,252,106 1,277,148Capital-RelatedExisting Debt (Principal & Interest) - Growth Related 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171New Growth Related Debt (Principal) - - - - - - - - - -New Growth Related Debt (Interest) - - - - - - - - - -Existing Debt (Principal & Interest) - Non-Growth Related 106,387 106,387 106,387 - - - - - - -New Non-Growth Related Debt (Principal) - - - - - - - - - -New Non-Growth Related Debt (Interest) - - - - - - - - - -Transfer to Capital - - - - - - - - - -Transfer to Capital Reserve 188,729 188,729 188,729 188,729 188,729 188,729 188,729 188,729 188,729 188,729Sub Total Capital Related 736,287 736,287 736,287 629,900 629,900 629,900 629,900 629,900 629,900 629,900Total Expenditures 1,810,433 1,831,916 1,848,121 1,763,971 1,786,652 1,809,787 1,833,385 1,857,455 1,882,006 1,907,048

RevenuesBase Charge - - - - - - - - - -Other Revenue 28,200 28,800 29,400 30,000 30,600 31,200 31,800 32,400 33,000 33,700Contributions from Development Charges Reserve Fund 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171 441,171Contributions from Reserves / Reserve Funds - - - - - - - - - -Total Operating Revenue 469,371 469,971 470,571 471,171 471,771 472,371 472,971 473,571 474,171 474,871

Wastewater Billing Recovery - Total 1,341,062 1,361,945 1,377,550 1,292,800 1,314,881 1,337,416 1,360,414 1,383,884 1,407,835 1,432,177

Table 15Township of RussellWastewater Services

Wastewater Rate ForecastInflated $

Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Total Wastewater Billing Recovery 1,341,062 1,361,945 1,377,550 1,292,800 1,314,881 1,337,416 1,360,414 1,383,884 1,407,835 1,432,177Residential Equivalents 3,717 3,867 4,017 4,168 4,318 4,468 4,618 4,769 4,919 5,069Flat Fee 377 361 352 343 310 305 299 295 290 286 283Annual Percentage Increase -4% -2% -3% -10% -2% -2% -2% -1% -1% -1%Flat Fee as a Percentage of Total Water Bill (163 m3/customer) 46% 44% 42% 37% 36% 34% 33% 32% 30% 29%

WSP PROJECTIONS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Flat Fee 377 361 357 347 314 308 303 298 293 289 285Annual Percentage Increase -4% -1% -3% -10% -2% -2% -2% -2% -1% -1%Flat Fee as a Percentage of Total Water Bill (163 m3/customer) 46% 44% 42% 38% 36% 35% 33% 32% 31% 29%

Forecast


Appendix EWATER AND SEWAGE RATE PRESENTATION TO COUNCIL – MARCH 2, 2015

2015-04-15

1

Council PresentationMarch 23, 2015

Russell TownshipWater and SewerRate Review

Presentation Overview

Introduction History of Water and Wastewater Rates Limitations of Existing Rates Infrastructure Condition Assessment

Findings Proposed Water and Wastewater Rates 20 Year Water and Wastewater Financial

Plan Conclusions and Recommendations

2015-04-15

2

Introduction3

• Tonight IS staff with the assistance of WSP will present a short review ofthe water and wastewater rate history.

• Also, as part of the presentation Council will be presented with the up todate condition assessment and how it relates to the asset managementplan moving forward.

• Lastly, Council will be presented the proposed rate structure and afinancial plan for the water and wastewater systems for the next 20years.

History of Water Rates

Hemson was retained in 2010 to review rate structure and provide a fiveyear water and wastewater financial plan.

That same year the Township completed the water system upgrade with acapital project from the City of Ottawa.

This capital project resulted in an large increase of the water rates. The Water Rate proposed included a flat rate and a variable rate: Water flat rate – covering O&M costs, debt repayment and transfers to

asset replacement reserve Water variable rate - set to pay for the costs of supply from Ottawa

2015-04-15

3

5

$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

2009(Before

Metering)

2010 2011 2012 2013 2014

$349

.00

$427

.00

$427

.00

$427

.00

$427

.00

$427

.00

$0.0

0

$244

.81

$256

.24

$286

.92

$292

.64

$295

.68

History of Water RatesHistorique du Taux d'Eau

Water Variable Rate / Taux d'Eau Variable

Water Flat Rate / Taux d'Eau Fixe

6

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

20102011

20122013

2014

92.5

0%

1.70

%

4.49

%

0.80

%

0.42

%

History of Water Rate IncreaseHistorique d'Augmentation du Taux d'Eau

2015-04-15

4

Problems with Existing Water Flat Rate

An issue with the existing water flat rate is that there is limitedcontribution towards asset replacement. The existing rate structure assumes a percentage of the flat rate would

be used for asset replacement. Hemson recommended an annual capital asset replacement

contribution of $900,000. However, upon Council’s direction C. Bellinger was asked to identify a

solution to smooth the required rate increases. Contributions were initially at $90,000 and the intent was to increase

this by $90,000 every year.

8

$427.42 $445.56 $456.72 $466.68 $475.56

2015-04-15

5

Hemson’s Approach9

Net Funding Requirement

Ottawa Charges $1,443,794

Operating Expenses $1,404,010

Ottawa Supply Project (Non-growth Share) $ 285,000

Funding from Reserves for Ottawa Supply $ (50,000)

Asset Replacement Contribution $ 90,000

Total Expenditures (Not including Ottawa’sCharges) $3,172,804

Fire Protection Revenues $ (130,050)

Other Revenues $ (6,834)

Total Non-Rate Revenues $ (136,884)

Rate Funding Need $3,035,920

Rate Funding Need Net of Ottawa SupplyCharge $1,592,126

Number of Units 3,725

Annual Flat Rate per Unit $ 427.42

Amount per Unit for Ottawa Supply Project $ 63.09

Amount per Unit for Asset Replacement $ 24.16

Amount per Unit for Operating Expenses $ 340.17

Condition Assessment – Water System

In 2014, the Township retained WSP to complete a condition assessmentof the water and wastewater infrastructure.

The assessment included visual inspections of the various facilities and areview of available CCTV data and operator feedback on maintenanceand repairs conducted.

The study identified capital projects required to address existingdeficiencies and to replace assets in poor condition or which areapproaching the end of their service lives.

A 20-year Capital Plan was developed Annual average contribution of $423,500 to the water system asset

replacement reserve required For comparison, Hemson recommended $900,000 and the AMP

recommended $1,084,423

10

2015-04-15

6

Comparison of Capital Expenditures11

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

20 Year Water System Financial PlanAnnual Asset Replacement Contribution

Condition Assessment

Hemson

AMP

New Calculation Approach – Water Flat Rate12

Similar to Approach developed by Hemson Includes the Ottawa Feedermain debt repayment Assumes 70% of the actual debt payments for the Ottawa Feedermain

to be raised through rates at this time

Uses 2014 values as starting pointAsset replacement reserve contribution assigned each year Amount is equal to the average capital replacement cost over the next

20 years Replacement costs based on condition assessment

Required rate revenue is equal to operating + debt + assetreplacement reserve contribution

2015-04-15

7

Limitations of Existing Water Variable Rate

Water supplied from the City is not being billed for in itsentirety. The billed volume to residents does not include water loss. Water loss in 2014 was higher than normal due to the leak in the

Ottawa Feedermain Water loss % is expected to decrease since leak was repaired The deficit covered by reducing the contribution to the asset

replacement reserve and using fire protection revenues This issue needs to be resolved and staff is currently working on a

solution.

The following table shows the water loss calculation and thecorresponding additional cost to the municipality.

Water Losses14

2012 2013 2014

Water billed by Ottawa (m3) 973,500 m3 922,641 m3 1,006,303 m3

Water billed to customers (m3) 732,354 m3 674,244 m3 696,526 m3

Water Loss (m3) 241,146 m3 248,397 m3 309,777 m3

Water Loss (%) 25% 27% 31%

Total Volumetric Charges Ottawa $1,288,732 $1,382,117 $1,613,106

Total Volumetric Charges toCustomers $1,231,779 $1,208,920 $1,261,409

Deficit $56,952 $173,197 $351,697

2015-04-15

8

Problems with Existing Water Variable Rate

To recover the cost from Ottawa, an increase to the volumetric rate isrequired. Estimated rate from the City of Ottawa in 2015 is $1.69/m3

Current rate being charged in the municipality is $1.81/m3.

To provide full cost recovery the rate would need to be increased to$2.27/m3

Based on annual consumption of 163 m3/unit/year, this corresponds toan increase of $73.60

Proposed Water Rates

As a result of the condition assessment and review of the currentfinancial status, this is the proposed rate structure for Council approval: Flat rate - revised based on condition assessment

- Proposed 2015 flat rate is $419/year- Decrease of 2% or $8/year relative to 2014

Variable rate – set to recover costs from Ottawa- Proposed 2015 variable rate is $2.27/m3

- This corresponds to $369.29/year or an increase of $73.60 relativeto 2014

2015-04-15

9

Proposed Water Rates17

2014 2015 2016 2017 2018 2019

Annual Flat Rate $427.00 $419.00 $411.00 $402.00 $389.00 $380.00

Annual Increase ofFlat Rate -2% -2% -2% -3% -2%

Volumetric Charge(based on 163m3/year)

$295.68 $369.29 $391.45 $414.93 $439.83 $466.22

Annual Increase ofVolumetric Rate 25% 6% 6% 6% 6%

Total AnnualCharge Per Unit $722.68 $788.29 $802.45 $816.93 $835.83 $853.22

Total AnnualIncrease 9% 2% 2% 1% 2%

GAC15

History of Sewage Rates

In 2010 Hemson was retained to review rate structure and provide a fiveyear water and wastewater financial plan.

The Sewage Rate was calculated as surcharge % of total water rate Originally set at 38% of total water rate

The existing Township sewage charge is split into a flat and variable ratecalculated as a percentage of the water rate: Sewage flat rate = 43% of water flat rate Sewage variable rate = 65% of water variable rate

2015-04-15

10

19

0

50

100

150

200

250

300

350

400

2009(Before

Metering)

2010 2011 2012 2013 2014

237.

5

$162

.26

$162

.26

$162

.26

$162

.26

$183

.60

$93.

03

$96.

23 $143

.46

$192

.29

$192

.54

History of Sewer RatesHistorique du Taux d'égout

Sewer Variable Rate / Taux d'égout Variable

Sewer Flat Rate / Taux d'égout Fixe

20

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

20102011

20122013

2014

7.49

%

1.25

%

18.2

7%

15.9

7%

6.09

%

History of Sewer Rate IncreaseHistorique d'Augmentation du Taux d'égout

2015-04-15

11

Problems with Existing Sewage Rate

An issue with the existing sewage rate is that there is limitedcontribution towards asset replacement. The existing rate structure assumes a percentage of the rate would be

used for asset replacement. Hemson recommended an annual capital asset replacement

contribution of $800,000. However, upon Council’s direction C. Bellinger was asked to identify a

solution to smooth the required rate increases. Contributions were initially at $80,000 and the intent was to increase

this by $80,000 every year.

Hemson’s original did not include the debt repayment for theRussell SPS project.

Hemson’s Approach22

2015-04-15

12

Condition Assessment – Sewage System

In 2014, the Township retained WSP to complete a condition assessmentof the water and wastewater infrastructure.

The study identified capital projects required to address existingdeficiencies and to replace assets in poor condition or which areapproaching the end of their service lives.

A 20-year Capital Plan was developed Annual average contribution of $159,829 to the sewage system asset

replacement reserve required For comparison, Hemson recommended $800,000 and the AMP

recommended $714,282

23

Comparison of Capital Expenditures24

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

20 Year Sewage System Financial PlanAnnual Asset Replacement Contribution

Condition Assessment

Hemson

AMP

2015-04-15

13

New Rate Calculation Approach – Sewage Rate25

Similar to approach used to calculate the water flat rate.Based on 2014 data Includes the debt repayment for Russell SPSAn asset replacement reserve contribution equal to the

average capital replacement cost for wastewaterinfrastructure over the next 20 years. Capital replacement costs based on condition assessment

New Rate Calculation Approach – Sewage Rate

The proposed rate structure would change to an annual flat rate structurebased on the operating, capital and replacement costs of the requiredexpenses in the budget.

Advantages to this approach: Sewage revenue independent of water revenue Rate as defined in bylaw structure would not need to be changed if

there was a decrease in the water rate Cost recovered regardless of whether consumption increases or

decreases As growth occurs, rate would decrease

26

2015-04-15

14

Proposed Sewage Rate

As a result of the condition assessment and review of the currentfinancial status, this is the proposed sewage rate for Council approval: Sewage rate - revised based on condition assessment

- Proposed 2015 flat rate is $353/year- Decrease of 6% or $23/year relative to 2014

2014 2015 2016 2017 2018 2019

Total Sewer ChargePer Unit $376.14 $353.00 $350.00 $340.00 $307.00 $302.00

Annual Increase -6% -1% -3% -10% -2%

27

20 Year Projection – Water and Sewage Rates28

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Water Flat Rate $427.00 $419.00 $411.00 $402.00 $389.00 $380.00 $371.00 $364.00 $356.00 $350.00 $343.00

Water Variable Rate $295.68 $369.29 $391.45 $414.93 $439.83 $466.22 $494.19 $523.84 $555.27 $588.59 $623.91

Total Water Rate $722.68 $788.29 $802.45 $816.93 $828.83 $846.22 $865.19 $887.84 $911.27 $938.59 $966.91

Sewage Rate $376.14 $353.00 $350.00 $340.00 $307.00 $302.00 $296.00 $292.00 $287.00 $283.00 $280.00

Total Water andSewage Rate $1,138.33 $1,151.54 $1,156.79 $1,135.09 $1,147.54 $1,161.17 $1,179.04 $1,198.19 $1,220.68 $1,246.61 $1,138.33

Annual Increase 4% 1% 0% -2% 1% 1% 2% 2% 2% 2%

$39.51 $13.21 $5.26 -$21.70 $12.45 $13.63 $17.86 $19.15 $22.50 $25.93

2015-04-15

15

20 Year Projection – Water and Sewage Rates(continued)

29

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Water Flat Rate $337.00 $332.00 $326.00 $321.00 $317.00 $312.00 $308.00 $304.00 $301.00 $297.00 $294.00

Water Variable Rate $661.34 $701.02 $743.08 $787.67 $834.93 $885.02 $938.12 $1,000.51 $1,067.01 $1,137.88 $1,213.42

Total Water Rate $998.05 $1,032.10 $1,068.87 $1,108.48 $1,151.07 $1,196.76 $1,245.71 $1,304.20 $1,367.02 $1,434.43 $1,506.71

Sewage Rate $276.00 $273.00 $270.00 $268.00 $265.00 $263.00 $261.00 $260.00 $258.00 $257.00 $255.00


Annual Increase 2% 2% 2% 3% 3% 3% 3% 3% 4% 4% 4%

$27.44 $31.05 $33.77 $37.61 $39.58 $43.69 $46.96 $57.48 $60.82 $66.41 $70.28

Conclusions and Recommendations30

New rates proposed for water and sewageOverall rate increase in 2015: Reduction to water flat rate Increase to water variable rate Decrease to sewage rate

Increase to water variable rate required to recover costs fromOttawa (currently at a deficit)

New rates have been independently verified by Watson &Associates

Update rate by-law (should be updated yearly)Condition assessment should be completed every five to 10

years

2015-04-15

16

Revised Ottawa Supply Project Debt Share31

Uncommitted Reserve Capacity Calculation completed forwater and sewage systems

Based on findings, there is more capacity available thanoriginally estimated

This impacts amount of development that can be supportedand also impacts the cost share of the Ottawa Supply Project A 70% existing vs. 30% growth split was adopted. However, a 30% existing vs. 70% growth is more appropriate given

revised capacity estimates This would have an impact on the water flat rate.

20 Year Projection – Water and Sewage Rates(Based on revised Ottawa Project Cost Allocation)

32

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Water Flat Rate $427.00 $337.00 $331.00 $326.00 $315.00 $308.00 $302.00 $296.00 $291.00 $286.00 $281.00


Total Water Rate $722.68 $706.29 $722.45 $740.93 $754.83 $774.22 $796.19 $819.84 $846.27 $874.59 $904.91

Sewage Rate $376.14 $352.79 $349.05 $339.64 $306.95 $301.22 $295.97 $291.18 $286.80 $282.79 $279.11


Annual Increase -4% 1% 1% -2% 1% 1% 2% 2% 2% 2%

-$40.14 $13.62 $7.90 -$19.23 $14.76 $15.81 $19.91 $21.08 $24.32 $27.65

2015-04-15

17

20 Year Projection – Water and Sewage Rates(Based on revised Ottawa Project Cost Allocation)

33

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Water Flat Rate $277.00 $273.00 $269.00 $265.00 $262.00 $259.00 $256.00 $253.00 $251.00 $248.00 $246.00


Total Water Rate $938.34 $974.02 $1,012.08 $1,052.67 $1,096.93 $1,144.02 $1,194.12 $1,253.51 $1,318.01 $1,385.88 $1,459.42

Sewage Rate $276.00 $273.00 $270.00 $268.00 $265.00 $263.00 $261.00 $260.00 $258.00 $257.00 $255.00


Annual Increase 2% 3% 3% 3% 3% 3% 3% 4% 4% 4% 4%

$29.07 $32.60 $35.24 $39.01 $40.92 $44.96 $48.17 $58.64 $61.93 $67.47 $71.30

What if Ottawa Volumetric Rate is Reduced34

If a bulk rate is negotiated with Ottawa, the reduction to thewater variable fees would be significant

$-

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

Effect of Reduction in Variable Rate from Ottawa

"@75% of Current Rate"

"@50% of Current Rate

"@ Current Rate

2015-04-15

18

Approach to “Phase in” Water Variable Rate Increase35

The proposed 25% increase to variable rate could be phasedin over several years as follows: 12.5% in 2015 – Variable Rate would be $327/year (a $31 increase) 12.5% in 2016 – Variable Rate would be $369/year (a $42 increase) 12.5% in 2017 – Variable Rate would be $415/year (a $46 increase) 6% every following year (matching increases from City of Ottawa)

The deficit generated during those years ($453,930) would have to becovered using the existing reserves.

20 Year Projection – Water and Sewage Rates –Adjusted

36

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Water Flat Rate $427.00 $419.00 $411.00 $402.00 $389.00 $380.00 $371.00 $364.00 $356.00 $350.00 $343.00


Total Water Rate $722.68 $788.29 $802.45 $816.93 $828.83 $846.22 $865.19 $887.84 $911.27 $938.59 $966.91

Sewage Rate $376.14 $353.00 $350.00 $340.00 $330.00 $317.00 $300.00 $292.00 $287.00 $283.00 $280.00


Annual Increase 4% 1% 0% 0% 0% 0% 1% 2% 2% 2%

$41.93 $10.79 $5.26 $1.30 $4.45 $2.63 $13.86 $19.15 $22.50 $25.93

2015-04-15

19

20 Year Projection – Water and Sewage Rates –Adjusted (continued)

37

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Water Flat Rate $337.00 $332.00 $326.00 $321.00 $317.00 $312.00 $308.00 $304.00 $301.00 $297.00 $294.00


Total Water Rate $998.05 $1,032.10 $1,068.87 $1,108.48 $1,151.07 $1,196.76 $1,245.71 $1,304.20 $1,367.02 $1,434.43 $1,506.71

Sewage Rate $276.00 $273.00 $270.00 $268.00 $265.00 $263.00 $261.00 $260.00 $258.00 $257.00 $255.00


Annual Increase 2% 2% 3% 3% 3% 3% 3% 4% 4% 4% 4%

$27.44 $31.05 $33.77 $37.61 $39.58 $43.69 $46.96 $57.48 $60.82 $66.41 $70.28

Appendix FFINANCIAL PLAN STATEMENTS


Line Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

1 Revenuesa Rate Revenue $4,736,981 $4,965,946 $5,171,698 $5,270,142 $5,510,816 $5,758,940 $6,039,783 $6,325,834 $6,644,254 $6,980,750 $7,338,205 $7,729,225 $8,138,631 $8,586,426 $9,063,922 $9,572,183b Other Revenues $437,630 $407,937 $415,906 $424,034 $432,325 $440,781 $449,407 $458,205 $467,179 $476,333 $485,669 $495,193 $504,907 $514,815 $524,921 $535,229c DC Revenue $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $508,397 $508,397 $508,397 $508,397 $267,353 $267,353 $267,353d Total Revenues $5,736,202 $5,935,475 $6,149,195 $6,255,768 $6,504,732 $6,761,312 $7,050,781 $7,345,630 $7,673,024 $7,965,479 $8,332,272 $8,732,814 $9,151,934 $9,368,594 $9,856,196 $10,374,766

2 Expensesa Operating $3,890,080 $4,044,078 $4,253,406 $4,483,285 $4,729,214 $4,992,364 $5,273,991 $5,575,440 $5,898,156 $6,243,684 $6,613,680 $7,009,920 $7,434,305 $7,888,872 $8,375,803 $8,897,434b Amortization $1,522,344 $1,749,769 $1,742,404 $1,752,113 $1,738,356 $1,739,537 $1,779,577 $1,791,853 $1,793,188 $1,793,172 $1,793,210 $1,793,210 $1,744,871 $1,832,635 $1,832,635 $1,721,209c Interest on Debt $727,277 $709,678 $689,230 $660,614 $640,650 $619,809 $598,052 $575,337 $551,621 $522,922 $497,063 $470,058 $442,353 $418,857 $395,671 $371,348d Total Expenses $6,139,701 $6,503,525 $6,685,039 $6,896,012 $7,108,219 $7,351,710 $7,651,620 $7,942,631 $8,242,965 $8,559,778 $8,903,953 $9,273,188 $9,621,529 $10,140,364 $10,604,109 $10,989,991

3 Annual Surplus/(Deficit) ($403,499) ($568,051) ($535,844) ($640,244) ($603,488) ($590,398) ($600,839) ($597,001) ($569,940) ($594,298) ($571,681) ($540,374) ($469,594) ($771,770) ($747,913) ($615,225)

4 Accumulated Surplus/ (Deficit) $67,907,090 $67,503,591 $66,935,540 $66,399,697 $65,759,453 $65,155,965 $64,565,567 $63,964,728 $63,367,727 $62,797,787 $62,203,488 $61,631,808 $61,091,434 $60,621,840 $59,850,070 $59,102,157

5Accumulated surplus, end ofperiod

$67,503,591 $66,935,540 $66,399,697 $65,759,453 $65,155,965 $64,565,567 $63,964,728 $63,367,727 $62,797,787 $62,203,488 $61,631,808 $61,091,434 $60,621,840 $59,850,070 $59,102,157 $58,486,932


Line Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030OPERATING TRANSACTIONS

1 Revenuesa Rate Revenue $4,736,981 $4,965,946 $5,171,698 $5,270,142 $5,510,816 $5,758,940 $6,039,783 $6,325,834 $6,644,254 $6,980,750 $7,338,205 $7,729,225 $8,138,631 $8,586,426 $9,063,922 $9,572,183b Other Revenues $437,630 $407,937 $415,906 $424,034 $432,325 $440,781 $449,407 $458,205 $467,179 $476,333 $485,669 $495,193 $504,907 $514,815 $524,921 $535,229c DC Revenue $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $561,591 $508,397 $508,397 $508,397 $508,397 $267,353 $267,353 $267,353d Total Revenues $5,736,202 $5,935,475 $6,149,195 $6,255,768 $6,504,732 $6,761,312 $7,050,781 $7,345,630 $7,673,024 $7,965,479 $8,332,272 $8,732,814 $9,151,934 $9,368,594 $9,856,196 $10,374,766

2 Operating Costs ($3,890,080) ($4,044,078) ($4,253,406) ($4,483,285) ($4,729,214) ($4,992,364) ($5,273,991) ($5,575,440) ($5,898,156) ($6,243,684) ($6,613,680) ($7,009,920) ($7,434,305) ($7,888,872) ($8,375,803) ($8,897,434)3 Interest on Debt ($727,277) ($709,678) ($689,230) ($660,614) ($640,650) ($619,809) ($598,052) ($575,337) ($551,621) ($522,922) ($497,063) ($470,058) ($442,353) ($418,857) ($395,671) ($371,348)4 Total Costs ($4,617,357) ($4,753,756) ($4,942,635) ($5,143,899) ($5,369,864) ($5,612,173) ($5,872,043) ($6,150,778) ($6,449,777) ($6,766,606) ($7,110,743) ($7,479,978) ($7,876,658) ($8,307,729) ($8,771,474) ($9,268,782)

5 Operating Transactions $1,118,845 $1,181,718 $1,206,560 $1,111,869 $1,134,868 $1,149,139 $1,178,739 $1,194,852 $1,223,247 $1,198,874 $1,221,529 $1,252,836 $1,275,277 $1,060,865 $1,084,721 $1,105,984

CAPITAL TRANSACTIONS

6Acquisition of tangible capitalassets

($722,900) ($280,000) ($254,000) ($84,500) ($124,000) ($71,500) ($484,500) ($357,000) ($312,000) ($1,454,100) ($803,700) ($1,869,900) ($282,000) ($405,100) ($2,686,300) ($135,600)

7Cash applied to capitaltransactions

($722,900) ($280,000) ($254,000) ($84,500) ($124,000) ($71,500) ($484,500) ($357,000) ($312,000) ($1,454,100) ($803,700) ($1,869,900) ($282,000) ($405,100) ($2,686,300) ($135,600)

FINANCE TRANSACTIONS8 Proceeds from debt issues $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $09 Debt Repayment ($758,444) ($688,511) ($708,959) ($524,802) ($544,766) ($565,606) ($587,363) ($610,078) ($633,795) ($609,300) ($635,159) ($662,164) ($589,434) ($472,321) ($495,506) ($519,830)

10Cash applied to financingtransactions

($758,444) ($688,511) ($708,959) ($524,802) ($544,766) ($565,606) ($587,363) ($610,078) ($633,795) ($609,300) ($635,159) ($662,164) ($589,434) ($472,321) ($495,506) ($519,830)

11Increase/(decrease) in cashand cash equivalents

($362,499) $213,208 $243,601 $502,567 $466,102 $512,033 $106,875 $227,774 $277,453 ($864,526) ($217,330) ($1,279,227) $403,843 $183,444 ($2,097,085) $450,554

12Cash and cash equivalents,beginning of period

$1,484,257 $1,121,758 $1,334,966 $1,578,567 $2,081,134 $2,547,236 $3,059,269 $3,166,144 $3,393,918 $3,671,371 $2,806,845 $2,589,516 $1,310,288 $1,714,131 $1,897,576 ($199,509)

13Cash and cash equivalents, endof period

$1,121,758 $1,334,966 $1,578,567 $2,081,134 $2,547,236 $3,059,269 $3,166,144 $3,393,918 $3,671,371 $2,806,845 $2,589,516 $1,310,288 $1,714,131 $1,897,576 ($199,509) $251,045

14Cash as percentage of net fixedassets

1.7% 2.1% 2.5% 3.4% 4.3% 5.3% 5.6% 6.2% 6.9% 5.3% 5.0% 2.5% 3.4% 3.8% -0.4% 0.5%


Line Item 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

FINANCIAL ASSETS1 Cash $1,121,758 $1,334,966 $1,578,567 $2,081,134 $2,547,236 $3,059,269 $3,166,144 $3,393,918 $3,671,371 $2,806,845 $2,589,516 $1,310,288 $1,714,131 $1,897,576 ($199,509) $251,045

LIABILITIES2 Debt $16,112,820 $15,424,310 $14,715,350 $14,190,548 $13,645,782 $13,080,176 $12,492,813 $11,882,735 $11,248,940 $10,639,641 $10,004,482 $9,342,318 $8,752,885 $8,280,564 $7,785,058 $7,265,228

3 Net Financial Assets (Debt) ($14,991,062) ($14,089,344) ($13,136,783) ($12,109,415) ($11,098,547) ($10,020,907) ($9,326,669) ($8,488,817) ($7,577,569) ($7,832,796) ($7,414,966) ($8,032,030) ($7,038,753) ($6,382,988) ($7,984,567) ($7,014,183)

NON-FINANCIAL ASSETS4 Tangible Capital Assets $65,623,389 $64,153,620 $62,665,216 $60,997,603 $59,383,247 $57,715,210 $56,420,133 $54,985,279 $53,504,092 $53,165,020 $52,175,509 $52,252,199 $50,789,328 $49,361,794 $50,215,459 $48,629,850

russell financial plan€¦ · wsp is pleased to submit our final report for the russell water and...

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