PUBLIC MEETING 2017 Water and Sewer Budget December 13th, 2016

Discussion Items Accomplishments 2016 Long Term Financial Plan Performance Measures 2017 Water & Sewer Budget Key Capital Projects Proposed 2017 Water and Sewer Rates Continuous Improvement Questions

Accomplishments 2016 2015 Year End MOE Inspection – 100% Rating on water system Fourth External Audit of Quality Management System – No Action Items Required Environmental Assessment for Mid Term Water supply completed Completed upgrades to SCADA controls and programmable logic controls for all well sites Redevelopment of Well # 5 Water meters – 77% now converted to radio frequency reads; approximately 480 remain to be changed over the next 3 years. 3

Long Term Financial Plan In 2012 Municipality completed Water and Wastewater Infrastructure Master Plan which forecasted operating and capital requirements for the period of 2012 through to 2031. The Plan will be updated in 2017 2016 – Asset Management Plan Update tabled in December Rate increases for the remainder of the forecast period (2017 to 2024) are expected at approximately 3% Periodic updates required in the future to confirm revenues, growth projections, and consumption trends 4

Performance Measures - Water MOECC Inspection Rating – 100% Watermain Breaks in 2015 – 4 Replaced 203 meters with RF meters in 2016 Reduction in 100 year old watermain replacement as Church Street watermain partially completed (balance to be completed in 2017) Treated Water production remains low at 575 megalitres for 2015 (peak of 736 ML in 2012).

Performance Measures – Wastewater Total volume of raw sewage treated 886 ML in 2015 (down from peak of 1286 ML in 2014) Volume of septage received to date in 2016 – 2108 cubic meters Total instances of blocked sewers - 1 Total number of manhole/sewer repairs - 1 Reduction in aged infrastructure with partial vitrified clay sewer replacement on Church Street (balance to be completed in 2017)

2017 Water and Sewer Budget Description Dollars Total Operating & Capital Expenditures $4,087,567 Funding for Operations & Capital Water Bill Revenue Bank Financing Reserves/Reserve Funds Other Revenues Federal & Provincial Grants Total Revenue Current Shortfall $2,649,168 $ 357,365 $ 743,865 $ 285,500 $ 51,669 $ 0 7

Operating Budget (2017 vs 2016) Description 2017 2016 % Labour 307,818 279,096 10.3 General Operating Expenses (telephone, office supplies, postage & courier, etc.) 33,950 33,845 .3 Travel & Training 16,000 15,500 3.2 Materials & Contracts (incl. OCWA) 1,450,764 1,376,131 5.4 Fuel & Oil 7,300 0.0 Maintenance & Repairs incl. machine time 35,500 34,000 4.4 Grant in Lieu of Taxes (property taxes) 78,000 77,000 1.3 Insurance 23,000 22,800 .9 Transfers to Reserves 266,606 388,000 -31.3 Debt repayments 498,000 504,760 -1.3 Capital funding 457,377 423,810 7.9 Total Operating Expenditures –Water & Sewer 3,174,315 3,162,242 .38 8

Key Capital Projects-Total Capital Budget $1,370,629 OCWA 7 Year Capital Plan - $149K W/WW Master Plan Update - $55K Schedule ‘C’ Class EA - Water System Expansion - $196K Watermain on Union Street - $254K Sanitary Sewer on Union Street - $146K Radio Frequency Meter Upgrades - $35K Engineering for future water and sewer works on Victoria Street - $180K Valve Turner for Valve Exercising - $85K Annual Infiltration and Inflow Program - $40K 9

Key Capital Projects (cont’d) WWTP Energy Optimization - $70K Well Site Mechanical/Electrical/Instrumentation upgrades - $70K Trenchless Sewer Lining Program - $45K Pump Station Surge and Lightning Protection - $20K DWWP & PTTW Amendment Wells 7 & 8 - $10K 10

Proposed 2017 Water and Sewer Rates 2016 2017 Increase Annual Base Charge $540.90 $562.54 4% or $21.64 Consumption Rate $11.35/1,000 gallons $11.53/1,000 gallons 1.6% or $0.18/1,000 gallons Average Annual Billing (32,700 gallons / year) $912.05 $939.57 $27.52 (3.02% or $9.17 per each billing) NOTE: BILLING CYCLE THREE TIMES ANNUALLY 11

Continuous Improvement Continue to review service delivery options, improve asset management, and pursue cost efficiencies where possible Pursue Federal and Provincial grant opportunities as they become available Continue with progressive preventative maintenance programs to extend service life and minimize incidents of unplanned work Continue to track operations through performance measurement data to monitor trends (negative/positive) 12

Questions? 13