1. 1 Village of Waskesiu Agreement –in-principle May 21, 2006

2. 2 Qualifiers Agreement-in principle subject to approvalsAgreement-in principle subject to approvals PCA must obtain required approvals from Federal governmentPCA must obtain required approvals from Federal government Council required to obtain approval from residentsCouncil required to obtain approval from residents If approved, joint submission for provincial legislationIf approved, joint submission for provincial legislation

3. 3 Timeframe Approvals sought this summerApprovals sought this summer if approved, then:if approved, then: Finalize detailed agreement - 2006Finalize detailed agreement - 2006 Provincial legislation – spring, 2007Provincial legislation – spring, 2007 Municipal Incorporation – Jan. 1, 2008Municipal Incorporation – Jan. 1, 2008 Two year transition – begins March, 2008Two year transition – begins March, 2008 Full municipal operation begins 2010Full municipal operation begins 2010

4. 4 Municipal Responsibilities Existing town boundariesExisting town boundaries Streets, roads and lanes, except 264Streets, roads and lanes, except 264 Utilities – water, sewer, and garbageUtilities – water, sewer, and garbage Recreation – Day use, beaches, tennis court complex, beach houses, camp kitchensRecreation – Day use, beaches, tennis court complex, beach houses, camp kitchens Pathways within townsite except Park trailsPathways within townsite except Park trails Protective Services – Police and Structural fireProtective Services – Police and Structural fire Cabin area easements and public reserves in cottage areasCabin area easements and public reserves in cottage areas Tax collectionsTax collections

5. 5 Parks Canada Responsibilities Highway 264Highway 264 Land Use Planning and DevelopmentLand Use Planning and Development Trailer Park and Beaver GlenTrailer Park and Beaver Glen Forest and wildlife managementForest and wildlife management Lease administrationLease administration Management of its own propertiesManagement of its own properties

6. 6 Infrastructure Municipal Value -$15mm;Municipal Value -$15mm; Utilities Value - $19mmUtilities Value - $19mm Waskesiu Drive Project- $1mm – PCAWaskesiu Drive Project- $1mm – PCA Lagoon project - $4mm – PCALagoon project - $4mm – PCA Initial grant to municipality - $1.85 mm (allows residential roads fix)Initial grant to municipality - $1.85 mm (allows residential roads fix) Storm sewer relocation project - $180,000 – MunicipalStorm sewer relocation project - $180,000 – Municipal Community Hall - $250,000 - PCACommunity Hall - $250,000 - PCA

7. 7 Financial Arrangements Property tax system replaces land rent systemProperty tax system replaces land rent system All land rent leases reduced to $1All land rent leases reduced to $1 All taxes collected, including PILT in Waskesiu municipality’s handsAll taxes collected, including PILT in Waskesiu municipality’s hands PCA will pay 1/3 of all utilities costsPCA will pay 1/3 of all utilities costs Existing utilities debt ($800,000) is forgiven; frees $92,000 annuallyExisting utilities debt ($800,000) is forgiven; frees $92,000 annually PCA pays $25,000 –day use areaPCA pays $25,000 –day use area PCA pays PILT on its properties-$124,000PCA pays PILT on its properties-$124,000 PCA provides $150,000 for transition costsPCA provides $150,000 for transition costs Municipality pays $100,000 for land rentMunicipality pays $100,000 for land rent Municipality pays $70,000 for P & DMunicipality pays $70,000 for P & D

8. 8 Other Arrangements PCA operates townsite until March 31, 2010 on fee for service ($500,000/year)-2 yearsPCA operates townsite until March 31, 2010 on fee for service ($500,000/year)-2 years PCA roadway maintenance – cost recovery basis -5 years – begin 2010PCA roadway maintenance – cost recovery basis -5 years – begin 2010 PCA will transfer Dickenson property, one residential duplex and one compound lot to municipality at no cost–Value$400,000PCA will transfer Dickenson property, one residential duplex and one compound lot to municipality at no cost–Value$400,000 Equipment and vehicles transferred at nominal sum ($1)Equipment and vehicles transferred at nominal sum ($1) PCA will pay tuition fees for employees childrenPCA will pay tuition fees for employees children Sewage treatment – PCA will pay $50,000 extra if higher standards are requiredSewage treatment – PCA will pay $50,000 extra if higher standards are required

9. 9 Projected Budget - 2010 RevenuesRevenues –Property Taxes - $867,613 –PCA PILT and Cost sharing - $149,443 –Other - $12,500 –Total - $1,021,557 ExpendituresExpenditures -Operating costs -$546,202 -Land Rent and P&D - $175,000 -Capital Reserves and Expenditures - $300,000 -Total - 1,021,202

10. 10 Financial Impact on Residents and businesses Change from land rent system to property tax system results in some having reduced costs while others have increased costsChange from land rent system to property tax system results in some having reduced costs while others have increased costs Overall, property tax revenues are projected at $262,387 less than land rent revenues in 2010Overall, property tax revenues are projected at $262,387 less than land rent revenues in 2010

11. 11 Sample Taxation Levels Projected costs to taxpayers – based on sample assessment and a mill rate of 10 mills:Projected costs to taxpayers – based on sample assessment and a mill rate of 10 mills: –Cabins - $690 - $1015 –Cottages - $600 - $2030 - Businesses - $1100 - $30000 Notes: Includes general and equipment reserve accumulation. No market adjustment in assessed values.

12. 12 Land Rent Vs Taxation Budget Revenue Estimates – Municipal - $1,022,000Budget Revenue Estimates – Municipal - $1,022,000 Results in mill rate of 10 millsResults in mill rate of 10 mills Revenue Sources:Revenue Sources: CurrentLand RentTaxation Cabin$135,300$675,000$404,000 Cottage$156,500$155,000$153,000 Business$229,800$300,000$302,000 PILT & CS$149,000

13. 13 Current vs Future Revenues

14. 14 Total of Land Rent vs Taxation

15. 15 Community Council Goals Financial viability and sustainability Financial viability and sustainability Improved infrastructure – long term Improved infrastructure – long term Ability to tackle issues and concerns Ability to tackle issues and concerns Ability to develop recreation programs Ability to develop recreation programs Local decision making on priorities Local decision making on priorities Tax revenues to stay in community Tax revenues to stay in community PCA to pay towards costs on behalf of visitors PCA to pay towards costs on behalf of visitors Reasonable cost to residents Reasonable cost to residents Waskesiu made solution Waskesiu made solution

16. 16 Impact if NO vote on agreement Land rent system in place – additional annual cost to residents - $262,000Land rent system in place – additional annual cost to residents - $262,000 $800,000 Utility debt remains - $92,000 annually$800,000 Utility debt remains - $92,000 annually $1.85 million infrastructure grant lost$1.85 million infrastructure grant lost PCA continues to manage townsitePCA continues to manage townsite Land rent revenues not all spent in WaskesiuLand rent revenues not all spent in Waskesiu Road repair program delayedRoad repair program delayed

17. 17 Council Recommendation Approval of this agreement-in-principleApproval of this agreement-in-principle Please vote:Please vote: –Advance poll – June 25, 2006 –Regular poll – July 2, 2006 –Location: Tennis court complex (Chamber of Commerce office)

18. 18 Discussion Questions and Answers