Audit and finance committee 2014 Audit Report

Debt Financing $46.4M in Municipal Debt Weighted average interest of 4.1% $2.7M in Operating line of credit Interest rate of 2.6% 50% of current loans repaid within 5 years Reduce Municipal debt load by $4.7M Annual debt repayment ratio at 14.25% Below Ministry of Municipal Affairs limit of 25%

Reserves Financed via annual transfer of tax Collected as a charge upon development Provide stability of tax rates Provide financing for one-time or short term requirements Make provisions for replacements/acquisitions of assets/infrastructure Reducing their reliance on long-term debt borrowings Provide flexibility to manage debt levels

Divisional Operations Amortization impacts net position by $9.7M Expenses were 2% lower than budgeted 51% of operating costs attributable to wages User fees cover 83% of wages Some divisions are not profit orientated Protection – Fire & Police

Recommendations Structure new loans with flexible terms for early repayment All non Infrastructure Ontario Loans receive multiple bids Restructure current loans to allow for monthly payments Expansion of interest bearing reserves to allow for expansion or improvement of assets Detailed accounting of reserves Allocate tax base to each operational division

Appendix B