JUNE 2015 STRATEGIC PLAN

JUNE 2015 STRATEGIC PLAN LOOKING TOWARDS 2025

INDEX 1. Introduction 2. Strategic Plan Process a. Strategic Plan Workshop b. Strategic Plan Alignment c. Strategic Plan Process d. Strategic Initiatives Report Card e. Term of the Strategic Plan f. Use of the Strategic Plan 3. The County of Simcoe Strategic Plan a. Vision Statement b. Mission Statement c. Values Statement d. Strategic Directions e. Framework for Delivering Results 4. Projected Long Term Financial Plan Update a. Financial Principles b. Key Assumptions c. Overview d. Charts and Tables e. Summary 2015 Strategic Plan Page 1

Strategic planning systematically addresses the County s purpose, internal and external environment, value to stakeholders, plans for action and long term financial planning. The plan outlines how the County of Simcoe will achieve the Vision and Mission, based on our values. The Strategic Plan serves as a roadmap that will take us from where we are today to where we want to be in the coming years. Recognizing this, the County developed such a plan, as well as instituted a process that allows updates to the plan to ensure it meets the changing needs of the community. It builds upon the direction of previous strategic plans and is supported by the strategic directions and initiatives. The County of Simcoe s Strategic Planning process is the cornerstone of our business model. It is the foundation upon which the Business Plans and the annual budget are based. INTRODUCTION What is Strategic Planning? A Process to establish priorities on what will be accomplished in the future Forces choices to be made on what will be done and what will not be done Pulls the entire organization together around a single plan Gives a broad outline on where resources will be allocated We believe that to allocate available resources, we must understand the needs and desires of the residents of the County and the environmental factors that affect us. By looking ahead and asking our stakeholders what they need, we establish a vision for what level of service we will provide, along with an understanding of what resources will be necessary to provide them. Having a strategic plan is as important to our future as architectural plans are to building a house The result is a Strategic Plan that helps the County establish priorities and make informed decisions while: Improving Performance Promoting forward looking focus Communicating to everyone What is Important Providing Direction Managing Risk 2015 Strategic Plan Page 2

Results Residents Elect Staff Services Results Strategies County of Simcoe Plan Strategic Plan Strategic Council Vision Strategic Directions Exec Mgmt Direction & Leadership Strategies 2015 Strategic Planning Workshop purpose was to: 1. Evaluate our Vision statement 2. Revisit our Mission statement 3. Consider our Core Values 4. Develop the Strategic Directions 5. Re-align the Strategic Plan 6. Review strategic initiatives report card 7. Review the Long Term Financial Plan 2016-2025 8. Direction on the 2016 budget assumptions and 2014 surplus allocation These statements serve as the basis for developing strategic directions which align with our service delivery functions. Council determines what Strategic Directions are most critical to our future, then reviews the available resources and the strategic directions are confirmed. Strategic Plan Alignment After Council sets the strategic directions, County departments expand on the strategic directions by developing goals and initiatives to align with the Strategic Plan to fulfill the strategic vision. This provides a linkage between the Vision, Mission, Strategic Directions and department s activities to achieve the desired results. Strategic Plan Process consists of: 1. Strategic Planning Workshop 2. Strategic Plan Alignment 3. Strategic Initiatives update 4. Term of the Strategic Plan 5. Use of the Strategic Plan 6. Updating the Long Term Financial Plan 2015 Strategic Plan Page 3

Strategic Initiatives Report Card The Strategic Initiatives Report Card, is intended to communicate progress towards the strategic plan, while allowing opportunity to evaluate and revise the supporting strategies and actions. STRATEGIC STRATEGIC PLAN PLAN PROCESS PROCESS The Strategic Initiatives Report Card is provided to Council annually, to outline the progress on strategic initiatives and the County s progress in addressing the strategic directions. Term of the Strategic Plan The STRATEGIC PLAN is intended to guide the County of Simcoe for a 10 year planning horizon. Four-year goals specify the priorities and directions to be focused on and reflect the planning cycles during Council s term. However, this is a dynamic and evolving plan, created using an assessment of the environment at a specific point in time. As issues, challenges, trends and opportunities emerge, Council has the opportunity to update the Long Term Financial Plan and Strategic Plan to reflect environment changes and to ensure Council s priorities and directions are addressed. Use of the Strategic Plan The STRATEGIC PLAN is intended to be used to: 1. Align decision making by working towards the achievement of common goals with consistent overarching Vision and Strategic Directions 2. To direct the development of department business plans and budgets 2015 Strategic Plan Page 4

The County of Simcoe Strategic Plan At the foundation of the Strategic Plan are the: VISION Statement MISSION Statement VALUE Statements That answers: Where we want to go? Who we are? How we will strive for our goals? This STRATEGIC PLAN is intended to communicate, educate and promote an understanding of the County s Vision, Mission, Core Values and Strategic Directions, along with the preferred methods for achieving those goals and cost to implement. It also serves as a framework for County departments to align their goals and strategies, thereby making budgetary decisions more consistent, sustainable and transparent. Vision, Mission, Core Values Statements Vision "Working Together to Build Vibrant, Healthy, Sustainable Communities" Report Strategic Initiatives Values Stewardship, Leadership Integrity, Innovation, Respect, Accountability Cooperation Mission Providing Sustainable, Accessible Services and Infrastructure Through Fiscal Responsibility and Innovative Leadership Strategic Directions Goals, Objectives & Initiatives Vision, Mission, Core Values, Strategic Direction Statements 2015 Strategic Plan Page 5

Vision Statement Key to the Strategic Plan is the Vision what do we want to be in the Future? The VISION Statement guides our decisions, helps us set direction and encourages us to align our priorities as we work to make County of Simcoe what we want it to become. Vision is what keeps us moving forward. "Working Together to Build What do we want to be In the Future? Vibrant, Healthy, Sustainable Communities Working Together To Build Vibrant, Healthy, Sustainabile Communities 2015 Strategic Plan Page 6

Mission Statement MISSION Statement is the Why the County exists. Defining the Mission of Simcoe County is another important step. Only by understanding our mission can we effectively determine what we need to do in working toward the vision. The mission statement explains the role of the County and its purpose. This should be re-examined and refreshed periodically to remain dynamic to ensure that our mission reflects the current needs. Providing Sustainable Accessible Services, and Infrastructure Through Fiscal Responsibility and Innovative Leadership 2015 Strategic Plan Page 7

Core Values Statement The County of Simcoe s vision relies on the County s values. What is most important to us? What drives the decisions that we make? What is most important to the Community? CORE VALUES are similar to the County s personality - what we are and what we value as being important. The core values represent the County s culture and what we believe in. Values are evident in our actions and our service delivery. Based on the consultation process, seven values were identified. Each of these values contained a short definition to provide clarity and consistency of the interpretation of these values. We VALUE Core values are similar to the County of Simcoe s personality Central to this Vision are the Values that we share: Stewardship: Leadership: Integrity: Innovation: Respect: Responsible Guardians for a Sustainable Future Inspire, Empower, Lead by Example Honesty, Trust and Transparency Creative, Progressive, Leading Edge Ideas Recognizing diversity through fair & equitable interaction Accountability: Commitment, Ownership and Follow Through Cooperation: Positive Approaches to Partnerships, Team Work and Understanding 2015 Strategic Plan Page 8

Strategic Directions STRATEGIC DIRECTIONS represent the priorities and desired results to be achieved in support of the Vision. Six We will pursue the Strategic Directions and Strategic Long Term Goals to Achieve Our Vision Directions Once the strategic directions are set, the operations of the County can be directed to fulfill the strategic vision. Based on the consultation process, six strategic directions were established to provide a clear focus for the future. A. Growth Related Service Delivery Definition: Create and strengthen partnerships with key stakeholders to support communities through the delivery of sustainable services B. Strengthened Social, Health and Educational Opportunities Definition: Establish partnerships to identify opportunities for strengthened Human Services and Education to support improved health and well-being of our residents C. Economic & Destination Development Definition: Create and strengthen partnerships with key stakeholders to develop economic opportunities in response to the changing demographics of the County and to provide a rich cultural experience for both local residents and tourists visiting the area D. Environmental Sustainability Definition: To preserve, conserve, and safeguard our environment and natural resources, while recognizing opportunity, innovation, and the needs of our community. E. A Culture of Workplace and Operational Excellence Definition: Create and maintain a healthy work environment that: Supports personal and professional growth Promotes effective, open and inclusive communications Provides services to residents in a fiscally sustainable and responsible manner F. Responsive and Effective Governance Definition: Address the structural and procedural challenges of a County spanning a divergent group of 16 municipalities 2015 Strategic Plan Page 9

Framework for Delivering Results We will pursue the Strategic Directions and Long Term Goals to Achieve Our Vision STRATEGIC DIRECTIONS represent the priorities and desired results to be achieved in support of the Vision. Each Strategic Direction contains Where do we want to be at the end of Council s term. How do we get there? outlines our strategies and initiatives that support the strategic direction. The Strategic Initiatives Report Card will assist in measuring progress towards the Vision. The Strategic Business Plan includes planned service levels, capital projects, debt levels and revenue sources that reflect the County s mission and strategic objectives. 2015 Strategic Plan Page 10

JUNE 2015 LONG-TERM FINANCIAL PLAN REVISED 2015 Strategic Plan Page 11

Projected Long Term Financial Plan The Long Term Financial Plan is a forecast based on the previously approved strategic directions along with any new initiatives approved by Council. The Long Term Financial Plan has been developed for both the operating and capital programs based on the forecasted needs for each program and/or service delivery areas. Departments consider capital expenditures based on the need to maintain service levels. The long term planning objective is to reflect the County s mission and strategic objectives in a strategic financial plan that includes planned service levels, capital projects, debt levels and revenue sources. The Long Term Financial Plan is a high level view, based on known or evidence based assumptions and is updated annually or as significant events occur. The financial plan also serves as a framework for County departments to align their goals and strategies, making budgetary decisions more consistent, sustainable and transparent. It is important to recognize that the actual results will differ from the long range projections due to its high level nature and changing economic & political environments. Nevertheless, the Long Term Financial Plan will allow Council and management to better anticipate and adjust for long term needs and requirements. This multi-year projection looks at the County s fiscal needs over the next 10 years and is the foundation for long-term financial planning. It is important since it provides context for the annual budget review process and is essential to meeting the goal of sustainable infrastructure and services planning. The Strategic Planning process is an integrated cycle of planning, budgeting/forecasting and reviewing results. The foundations of these forward looking processes are the County s Strategic Directions and Long Term Financial Plan. By remaining focused on the strategy, we ensure that our plans, budgets, and forecasts reflect the actions and activities necessary to achieve our strategic objectives and targets, and will ensure that the County remains in a sound financial position and can maintain services to the public on an ongoing basis. 2015 Strategic Plan Page 12

Financial Principles The County has recognized the need to adopt an approach to financial management, one that shifts the emphasis from bottom line financial concerns to service delivery with a longer term financial planning horizon. The Long-Term Financial Plan Principles include: Financial Principles Financial & Principles Policies 1. Ensure Long-Term Financial Sustainability Determine on a multi-year basis the financial requirements for operating and capital needs Identify any funding gap between revenues and expenditures Ensure there are sufficient revenues to meet long-term operating and financial requirements and balance spending with revenues Plan for the replacement of assets and maintenance of assets through asset management and replacement reserves Maintain existing service levels Keep tax levy impact within cost indices 2. Deliver services in a cost-effective and efficient manner Undertake reviews of programs on a regular basis to ensure services are delivered in a cost effective and efficient manner Identified and implement efficiencies Provide sustainable service levels 3. User Fees Ensure that user fees recover program operating costs 4. Manage capital assets to maximize long-term community benefit Maintain the County s assets in a state of good repair' by implementing asset management plans 5. Implement a capital funding plan to address the County s requirements Identify and plan for new asset requirements Develop debt financing program to address the County s capital needs Ensure debt terms are consistent with the life of the asset 6. Maintain reserves at appropriate levels Establish reserves to provide funding for future asset 7. Prudent Investment Management Invest the County s reserves to achieve optimum return within appropriate risk tolerances 2015 Strategic Plan Page 13

Key Inputs and Assumptions Plans, Acts and Regulations: The long term financial plan reflects the strategic initiatives and investment in Simcoe County. A number of planning processes, multi-year master plans and Acts, in addition to Ministry regulations drive the development of the long term financial plan. Major elements include: County of Simcoe Strategic Plan Transportation Master Plan Simcoe County Official Plan Solid Waste Management Strategy Long Term Financial Plan Development Charge Background Study Development Charge Act Ontario Planning Act Social Housing Act Long Term Care Act Ambulance Act Environmental Protection Act Ontario Provincial Standards Key Inputs and Assumptions Economic Outlook: The economic prospects for the County of Simcoe are expected to remain good per Standard & Poor s (S&P) report at the time of the County s credit rating review. The credit rating firm provided the following; County of Simcoe 'AA' Rating, Affirmed based on low and manageable debt levels and strong liquidity position; and changed the outlook from Stable to Positive. Provincial Subsidies: As a major source of revenue, Provincial subsidies are assumed to continue at the current known and committed levels. Costs of providing provincially mandated services are based on Ministry regulations and guidelines and have been increased to reflect a 2% inflation factor. Excluding inflation factor, costs remain the same to maintain programs at current service levels. Development charges and reserve funds: Development Charges are fees imposed against development to pay for costs due to increased needs for services arising from growth-related development in the County. The rates for these fees are developed based on the growth forecasts and needs requirements within the County. Various long term plans have been utilized to develop future rates; these include the Transportation Master Plan and the Official Plan. 2015 Strategic Plan Page 14

A requirement of the Public Sector Accounting principles of the Canadian Institute of Chartered Accountants (CICA) is that obligatory reserve funds be reported as deferred revenue. This requirement is in place as legislation and external agreements restrict how these funds may be used and under certain circumstances these funds may possibly be refunded. Monies received from payment of development charges under the Development Charge bylaw shall be maintained in specific reserve funds and interest is allocated to each of the reserves increasing their balances. Included in the long term financial plan are development charge receipts that are based on current experience. Incremental increases over the next 5 years are included to return to the 2011 development charge background study projected receipt levels. Key Inputs and Assumptions Growth related project costs identified in the development charge background study have been included with adjustments for costs and timing of project work. At the end of 2014 development charges had a negative balance and are being funded internally. The 2014 balance for the negative development charges is $28.3 million. These amounts will be replenished when the development charge receipts are received. Asset Management Plan: Ontario municipalities are required to develop asset management plans to accompany any request for provincial infrastructure funding. Staff has developed an asset management plan that outlines the state of the local infrastructure including an asset inventory listing identifying various attributes of an asset such as the asset condition and replacement cost estimates. The asset management plan provides desired level of service, an asset management strategy and a financing strategy. The Strategic Plan is in line with the asset management plan as they have the common goal of providing a strong and comprehensive strategy to provide high quality services to residents. Both plans ensure County infrastructure and capital assets are well managed and maintained. This is attainable by conducting long range infrastructure planning that focuses on proper maintenance of the County s current assets and includes forecasts of long term capital needs. Debt Capacity: The County has a current debt service capacity of $39.7 million available per year for payments relating to debt and financial obligations under provincial guidelines based on the 2013 Financial Information Return. 2015 Strategic Plan Page 15

The additional borrowing which the County of Simcoe could undertake over a 5 year, 10 year, 15 year and 20 year period is illustrated below at 5% interest rate, for information purposes only. Period Maximum Borrowing 20 years $495M 15 years $412M 10 years $307M 5 years $172M General: Tax Levy increase of 2.0% per year - based on maintaining existing service levels Provision of 1% for Strategic land purchases has been included 2016-2020 Provision of 1% for Economic Development 2016-2020 has been included Based on historical trends annual assessment growth has been estimated at 2.0%. Supplementary taxations is estimated at $1.25 million net of write offs. 2% inflation factor for year over year operational cost increases based on the Bank of Canada s target CPI rate of 2% Non-residential index annual increase of 2% Utilities projected increases (Hydro 3.3%, Natural Gas 3.5%, Water 2%) Salaries & Benefits are based on current contracts, non-union compensation plan Municipal Property Assessment Corporate increase of 2% per year Simcoe Muskoka District Health Unit increase of 2% per year Lake Simcoe Regional Airport increase of 2% per year Hospital Alliance grant of $3M per year Post-secondary funding of $1.5M per year $2 million contingency reserve allocation per year Cost sharing with the Cities of Barrie and Orillia are estimated based on the current agreement Key Inputs and Assumptions FTE s: The Staffing requirement for FTE s have been projected to meet departmental objectives. An FTE is calculated by determining the total staffing hours required to provide the service and dividing this by a full time employee work hours. 2015 Strategic Plan Page 16

Health and Emergency Services: Long Term Care Long Term Care provincial subsidies and user fees are estimated using historical trends at 2%. Paramedic Services Key Inputs and Assumptions Paramedic call volume is projected to increase by approximately 80% over the next 10 years. In line with this call volume, staffing was projected to increase by 38% which is lower than call volume growth because it incorporates expected deployment efficiencies. The last five years of staffing growth within the financial plan was further reduced to anticipate the results of current programs that are being put it place to mitigate call volume growth. This results growth of 31% or an addition of the 69 FTE in Paramedic Services over the 10 year plan. Paramedic facility projects have been adjusted for timing and cost estimates. The shared first responder s campus in Barrie is included in 2019. Social and Community Services: Social Housing New Investment in Affordable Housing Program (IAHE) funding/payments have been included in the long term plan with timing based on program delivery and fiscal plan. The Simcoe County Housing Corporation has included a building project totaling $20 million to be built in 2017/2018 and is partially offset by provincial funding, development charges, reserves and cost sharing with the cities of Barrie and Orillia. Non Profit Housing reflects the financial impact of Non-Profit Housing Providers capital reserve shortfall and end of operating agreement and mortgages. Housing Providers will be able to access loans from the County to address capital repairs. Transfer to reserve of $2 million annually to fund the County s portion of the Non Profit Social housing provider capital loans. In years where the requirement is higher than the available transfer from reserve, there is an increase in levy requirement. Ontario Works Ontario Works caseloads are projected to remain at current levels. Upload of Ontario Works client benefits by 2018. Ontario Works 50% Provincial funding of administration has been assumed. 2015 Strategic Plan Page 17

Engineering, Planning and Environment: Roads Federal Gas Tax funding of $80 million has been used for roads rehabilitation and capital projects. Select major roads construction projects have been condensed as much as possible in order to minimize the construction time impact on residents. This occurs in 2016 and 2017. Roads Construction has incorporated the current Transportation Master Plan. Roads Construction capital projects are estimated at $378 million over the next 10 years and will be partially offset by development charges and reserves. Roads reflects an increase in lane kilometres in addition to growth related projects 190.4 lane KM s uploaded to the County network, over the next 10 years 80.6 lane KM s added over the next 10 years from roads construction projects (i.e. CR90, CR 4). Key Inputs and Assumptions Solid Waste Management Transfer to reserves of $2.8 million annually to fund future capital projects. Construction of Organics Processing facility for $27 million of which $25 million is planned for 2018-2019 and operational in 2020. Materials Management facility was previously reserved and is forecasted to be completed in 2017 2018 and operational in 2019. 2015 Strategic Plan Page 18

Overview The Long Term Baseline plan contemplates total expenditures of $453 million in 2016, potentially increasing to $500 million in 2025, to maintain existing service levels. Assuming a tax rate increase of 2.0% per year, funding of $442 million in 2016 is anticipated, increasing to $539 million in 2025. An average surplus of $14 million is projected, made up of an average operating balance of $34 million. Offsetting the projected average operating balance of $34 million is average net capital requirement of $20 million. Development charge unfinanced capital is projected to have a deficit of $65 million at the beginning of 2016, and $107 million in 2025. Overview The Long Term Financial Plan provides for an investment of approximately $556 million into major capital works from 2016 through to 2025. Roads construction capital projects make up $378 million of the total investment. As indicated in the Cash Flow Statement, short term financing of up to $45 million is anticipated in 2016 and 2017 to allow for select major construction projects to be condensed as much as possible in order to minimize the construction time impact on residents. Such financing may comprise of short term debt, long term debt or unfinanced capital. However, based on projections the debt can be repaid by 2024. This long term financial plan will allow Council to better understand what financial requirements exist, and what resources are available. The pressures facing the County and it s member municipalities are significant. By focusing on the long term, the Long Term Financial Plan will ensure that the County will continue to be in a strong financial position and can finance public services on an on-going basis. 2015 Strategic Plan Page 19

Tables Detailed financial projections are provided in the following schedules: Table 1 - Operating Expenditures by Department Table 2 Capital Expenditures by Area Table 3 - Net Operating Requirement Table 4 Operating Cash Flow Table 5 - Debt Summary Table 6 - Reserves 2015 Strategic Plan Page 20

Operating Expenditures by Department 2016-2025 (In millions) Category 2016 2017 2018 2019 2020 2021-2025 2016-2025 Warden & Council 1.3 1.4 1.4 1.4 1.4 7.6 14.5 CAO, Communications & Customer Service 2.4 2.5 2.5 2.6 2.6 14.0 26.6 Total Warden & CAO 3.8 3.8 3.9 4.0 4.1 21.5 41.1 Museum 2.0 2.0 2.0 2.1 2.1 11.3 21.6 Library 0.7 0.7 0.7 0.7 0.7 4.0 7.5 Clerk 0.9 0.9 0.9 1.0 1.0 5.1 9.8 Archives 0.6 0.7 0.7 0.7 0.7 3.8 7.2 Total Statutory & Cultural Services 4.2 4.3 4.4 4.5 4.6 24.2 46.1 Human Resources 3.2 3.3 3.4 3.4 3.5 18.6 35.4 Finance 3.5 3.6 3.7 3.8 4.0 21.5 40.2 Information Technology 6.9 7.1 7.3 7.4 7.7 40.7 77.0 Procurement, Fleet & Property 4.2 4.3 4.5 4.6 4.7 25.1 47.5 Total Corporate Performance 17.8 18.4 18.9 19.3 19.9 105.9 200.2 Social Housing Non-Profit 25.8 30.2 31.6 26.6 41.5 118.5 274.2 Children & Community Services 39.6 39.7 39.7 39.7 39.7 199.0 397.5 Ontario Works 84.8 85.8 86.8 87.9 88.9 461.0 895.3 Simcoe County Housing Corporation 13.9 14.1 14.3 15.4 15.9 81.1 154.8 Total Social & Community Services 164.2 169.8 172.4 169.6 186.1 859.7 1,721.8 Long Term Care & Seniors Services 50.0 51.0 51.9 53.1 54.0 287.2 547.2 Paramedic Services 41.9 43.7 45.7 48.2 50.8 286.2 516.5 Emergency Management 0.5 0.5 0.5 0.5 0.5 2.7 5.2 Total Health & Emergency Services 92.4 95.2 98.1 101.8 105.3 576.1 1,068.9 Transportation & Engineering - Maintenance 12.7 13.1 13.5 13.9 14.2 82.7 150.1 Transportation & Engineering - Construction 12.8 12.2 9.7 12.5 4.9 44.4 96.6 Solid Waste Management 45.6 46.6 47.5 48.0 49.1 272.9 509.7 Forestry & By-Law 1.4 1.4 1.4 1.5 1.5 7.9 15.1 Planning, Economic Development & Tourism 4.0 4.0 4.1 4.1 4.2 22.0 42.4 Total Engineering, Planning & Environment 76.5 77.3 76.2 80.0 73.9 429.9 813.9 General Municipal 28.4 28.7 29.0 29.3 29.7 131.9 276.9 Total 387.2 397.6 402.9 408.5 423.5 2,149.2 4,168.9 2015 Strategic Plan Page 21

Capital Expenditures by Area 2016-2025 (In Millions) Department 2016 2017 2018 2019 2020 2016-2025 Roads Construction 47.1 50.0 30.0 28.0 36.6 378.3 Structures 11.5 12.3 10.3 10.8 6.7 98.7 Roads 35.6 37.7 19.7 17.2 29.9 279.5 Roads Maintenance 0.7 0.9 0.8 0.8 1.0 10.7 Solid Waste Management 3.9 2.7 14.7 14.2 2.9 46.8 Paramedic Services 8.1 3.6 1.2 19.7 2.6 56.4 Long Term Care 1.6 1.2 1.1 1.0 1.6 11.5 Simcoe County Housing Corp 2.3 11.0 9.7 0.8 0.7 32.1 Other Departments 2.8 2.7 1.3 1.9 2.4 20.2 TOTAL 66.5 72.2 58.9 66.5 47.7 556.0 2015 Strategic Plan Page 22

Net Operating Requirement 2016-2025 (In millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016-2025 OPERATING (16.7) (20.5) (24.5) (27.6) (30.2) (37.3) (40.5) (44.6) (46.4) (51.8) (340.0) REVENUE (403.9) (418.1) (427.4) (436.1) (453.6) (451.3) (461.0) (472.5) (483.4) (501.6) (4,508.9) Subsidies (177.4) (186.5) (187.1) (186.6) (184.6) (189.3) (191.3) (195.1) (197.4) (200.5) (1,895.7) County Levy (148.2) (154.1) (160.2) (166.6) (173.3) (180.2) (187.4) (194.8) (202.6) (210.7) (1,778.1) Municipal Billings (24.5) (23.5) (23.9) (24.8) (30.9) (26.6) (26.7) (26.9) (27.1) (29.4) (264.3) User Fees (39.2) (40.0) (40.7) (42.3) (43.0) (43.8) (44.5) (45.3) (46.1) (46.9) (431.7) Miscellaneous Income (5.0) (5.2) (5.4) (5.6) (5.8) (6.0) (6.1) (6.3) (6.5) (6.7) (58.7) Transfer From Reserve (9.6) (8.7) (10.1) (10.2) (16.2) (5.6) (5.0) (4.1) (3.7) (7.4) (80.4) EXPENSES 387.2 397.6 402.9 408.5 423.5 414.0 420.5 427.9 437.1 449.8 4,168.9 Client Benefit 128.5 133.5 135.5 131.3 146.8 131.9 130.9 130.0 128.7 133.6 1,330.6 Salaries 128.6 132.3 136.1 140.9 145.3 149.3 153.3 157.9 162.6 167.1 1,473.5 Administration 24.4 24.7 25.4 25.5 26.0 26.4 26.8 27.2 27.9 28.2 262.5 Facilities 23.9 23.5 21.4 25.7 23.6 26.7 26.9 28.4 29.4 31.2 260.8 COSD 69.0 70.4 71.6 71.9 68.8 66.5 69.4 71.1 75.3 76.7 710.7 Transfer To Reserve 12.8 13.1 12.8 13.2 13.0 13.2 13.2 13.2 13.2 13.0 130.7 Other 0 0 0 0 0 0 0 0 0 0 0.0 NET CAPITAL 28.5 25.3 13.0 25.7 16.8 17.1 21.6 19.7 15.2 12.8 195.8 Capital Revenues (38.0) (46.9) (45.9) (40.7) (30.8) (47.0) (28.0) (22.8) (22.6) (37.5) (360.2) Capital Expenses 66.5 72.2 58.9 66.5 47.7 64.1 49.5 42.5 37.8 50.3 556.0 NET REQUIREMENT - Deficit (Surplus) 11.8 4.8 (11.5) (1.9) (13.4) (20.2) (19.0) (24.9) (31.1) (39.0) (144.3) 2015 Strategic Plan Page 23

Operating Cash Flow 2016-2025 (In millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CASH BALANCE BEGINNING OF YEAR 0.0 0.0 0.0 (0.1) (0.1) 0.2 3.2 15.7 44.6 78.5 SOURCES FROM OPERATIONS Operating Revenue (394.3) (409.4) (417.3) (425.9) (437.5) (445.7) (456.0) (468.4) (479.7) (494.2) Capital Revenue (5.8) (10.4) (12.1) (8.7) (2.7) (8.7) (4.5) (4.3) (2.9) (1.5) Development Charge Receipts (15.1) (17.0) (19.0) (20.8) (22.9) (23.4) (23.8) (24.3) (24.8) (24.3) USES FOR OPERATIONS Operating Expenses 374.4 384.4 390.1 395.3 410.5 400.8 407.3 414.7 423.9 436.7 Capital Expenses 66.5 72.0 58.5 66.2 47.3 64.0 49.5 42.5 37.8 50.2 NET CASH FROM OPERATIONS (25.6) (19.7) (0.1) (6.0) 5.3 13.0 27.5 39.8 45.8 33.1 New Short Term Debt 25.6 19.7 6.0 Accelearated Debt Payments (5.0) (10.0) (15.0) (10.9) (11.9) END OF YEAR CASH BALANCE 0.0 0.0 (0.1) (0.1) 0.2 3.2 15.7 44.6 78.5 111.5 Cum. New Short Term Debt 27.1 46.8 46.8 52.8 47.8 37.8 22.8 11.9 0.0 0.0 2015 Strategic Plan Page 24

Debt Summary 2016-2025 (In Millions) Debt Type 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Unfinanced Capital 59.9 56.2 52.5 48.8 45.0 40.2 35.3 30.4 25.6 20.7 Unfinanced Capital - Development Charges 65.2 85.7 90.8 99.0 101.5 116.0 115.0 106.3 96.7 107.3 Long Term Debt 24.6 21.7 18.8 15.9 12.8 11.0 9.2 7.5 5.8 4.4 Short Term Debt 56.1 75.8 75.8 81.8 76.8 66.8 51.8 40.9 29.0 29.0 Total 205.8 239.3 237.9 245.4 236.1 234.0 211.4 185.1 157.1 161.4 Balances shown are at year end 2015 Strategic Plan Page 25

Reserves 2016-2025 (In Millions) Reserve Name 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Archives Contingency Reserve 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Museum Contingency Reserve 0.4 0.4 0.5 0.5 0.4 0.4 0.4 0.5 0.6 0.7 Forestry Reserve 4.9 4.9 4.9 4.9 4.8 4.8 4.8 4.8 4.8 4.9 Homes Contingency Reserve 1.0 0.8 0.6 0.6 0.0 0.0 0.0 0.3 0.1 0.3 General Contingency Reserve 5.4 7.5 9.6 11.8 13.9 16.0 18.1 20.2 22.4 24.5 Social Services Reseve 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Simcoe Village Reserve 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Roads Contingency Reserve 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 Paramedic Services Contingency Res. 2.9 3.2 3.6 3.9 4.2 3.3 3.2 3.4 3.8 4.1 Admin. Bldg. Contingency Reserve 1.1 1.2 1.3 1.4 1.5 1.5 1.6 1.7 1.8 1.6 Tourism Simcoe 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Social Housing Reserve 16.0 18.5 19.8 20.9 11.5 12.4 13.7 15.8 18.7 17.8 Waste Mgt. Contingency Reserve 17.1 18.2 8.3 4.9 6.6 9.2 11.8 14.4 17.0 19.6 Sunset Village 0.3 0.3 0.3 0.4 0.4 0.4 0.5 0.5 0.5 0.6 Economic Development 1.2 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 Total Reserves 57.7 63.7 57.5 57.8 52.0 56.7 62.8 70.4 78.4 82.8 2015 Strategic Plan Page 26