1. Audit and finance committee
2014 Audit Report

2. 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%

3. 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

4. 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

5. 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

6. Appendix B