Fundamental Principles  Appropriate levels of service are being delivered to the community.  The Corporation is prepared to maintain its commitments to the community as represented by current discretionary funding levels (i.e. external commitments).  Consideration has been given to the impact of decisions on the Corporation’s future financial stability.

Fiscally Responsible Government  Standard & Poor’s AA Credit rating  Very low debt ($0 debt – June 2014)  Health liquidity  Solid Reserve Strategy  Long standing life-cycle capital program  Pay-as-go infrastructure  Consistent tax rates well below inflation

 Budget Assumptions / Format / Timetable  Preparation of Preliminary Departmental Estimates  Administrative Review  Council Review (February 5, 2014)  Budget Adoption (February 19, 2014) County Budget Process

2014 Budget Overview  Budget Summary  Impact Variables  Risk & Future Obligations  County Comparators  2014 Tax Rate / Residential Impact  Departmental Reviews

Ontario Inflation & County Tax Rates  Inflation Index  CPI annual average increase, = 1.9%  Year to Date Average Consumer Price Index (Sept 2013) CPI=1.2% annual estimate  County Tax Rates  Annual average tax rate increase,  Excluding Infrastructure Expansion = 0.2%  Including Infrastructure Expansion = 1.2%

CPI & Tax Rates Comparison

2014 “Targeted” County Tax Rate Target 2014 Base Operations0.50% Infrastructure Expansion ( year 8 of 12) 1.50% Total Target Tax Rate2.00%

2014 “Proposed” County Tax Rate TargetProposed 2014 Base Operations0.50%0.06% Infrastructure Expansion ( year 8 of 12) 1.50% Total Target Tax Rate2.00%1.56%

Budget Summary BUDGET ACTUAL BUDGET (unaudited) Total Gross Expenditures136,739, ,678, ,294,580 Departmental Recoveries(49,641,710) (51,535,890) (51,201,440) Net Expenditures before Reserve Transfers87,098,020 71,142,480 90,093,140 Net Contribution to (from) Reserves(12,123,520) 3,832,020 (12,005,940) Total County Requirement74,974,500 78,087,200 Increase over 2013 Budget: 3,112,700 Estimated 2014 Tax Rate: Tax Rate: Increase: 1.56%

2014 Budget – Impact Variables LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Regional Cost Sharing LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Infrastructure Expansion LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

 Expansion requirements identified through the Essex Windsor Regional Transportation Study.  Current costs estimate - $400 million. (excludes overpasses)  Timeframe  Funding model predicated on no government funding.  County requirement - $400 million, through 1.5% Levy increase through  Current Infrastructure Reserve 12/31/13 - $30.4 million.  2014 capital levy dedicated to expansion - $8.0 million (inclusive of % increment). Infrastructure Expansion

Insurance – Liability & Property LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Social Services LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

 Ontario Works Upload (from 85.8% to 88.6%)  Anticipated reduction in caseloads for 2014  Ontario Works Benefit increase  Modest inflationary increases in service delivery costs Social Services

 Ontario Works Upload (from 85.8% to 88.6%)  Anticipated reduction in caseloads for 2014  Ontario Works Benefit increase  Modest inflationary increases in service delivery costs Social Services

Provincial Upload – OW Provincial Cost ShareNew Provincial Cost Share (pre-Upload) Ontario Works 80%80.6%81.2%82.8%85.8%88.6%91.4%94.2%97.2%100%

 Ontario Works Upload (from 85.8% to 88.6%)  Anticipated reduction in caseloads for 2014  Ontario Works Benefit increase  Modest inflationary increases in service delivery costs Social Services

Ontario Works ( )

 Ontario Works Upload (from 85.8% to 88.6%)  Anticipated reduction in caseloads for 2014  Ontario Works Benefit increase  Modest inflationary increases in service delivery costs Social Services

Wages & Benefits LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Transportation – Rehab & Drainage LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Transportation – Winter Control LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Transportation – Winter Control 4-yr. avg.

Transportation – CWATS LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Sun Parlor Home - Subsidy LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Ext. Commitments – Public Health LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Operational Impacts LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Ext. Commitments – Other LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

External Initiatives LevyTax Impact County Levy, prior year $ 74,974, % Regional Services cost sharing (EMS, Social Services, Social Housing) 201, % Roadway expansion (1.5% of Levy) 1,125, % Insurance – Liability & Property 142, % Social Services - provincial uploading (prov. share 88.6%) (766,000)-1.00% Social Services - caseload reduction / OW benefit increase / Inflationary (64,400)-0.08% Wages, health benefits & statutory deductions (EI, CPP, EHT, WSIB) 871, % SPH – prior period arbitrated wages & assoc. benefits / statutory deductions 323, % Transportation - Construction Rehabilitation Program 450, % Transportation - Drainage Assessments 250, % Transportation - Winter Control (4 year average) 150, % Rate Stabilization (winter control, pay equity) 500, % County-Wide Active Transportation Infrastructure 100, % SPH - increases in subsidy (per diems & CMI change) (315,700)-0.41% Windsor-Essex County Health Unit – (Option % municipal funding) 262, % Net expenditures/recoveries (inflation adj. -utilities, service contracts, supplies) (259,200)-0.34% External Commitment (net – Int.Children’s Games, TWEPI, Social Housing) (56,000)-0.07% External Initiatives (Hospice, Sports Tourism, regional economic requests) 200, % County Levy 2014 $ 78,087, %

Budget Risk Factors  EMS – offload delays (code 7s)  EMS – Provincial funding  EMS – call volume concerns – demographics / response time  SPH – increasingly frail / higher level of care requirements  Social Services – caseload increases  Public Health – lack of Prov. Funding / Cost Sharing  Winter Control maintenance costs  Federal & Provincial deficit mitigation measures  Escalation in supply costs – fuel, medical supplies…  OMERS, WSIB premiums  Outstanding collective agreements

Tax Rate Impact YEAR Assessed Value Res. Tax Rate TaxesTax Change% 2013$200, $ $200, $892.26$ %