2010 - 2019 TAX SUPPORTED CAPITAL BUDGET

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					City of Hamilton FCS09114              2010 Tax-Supported Capital Budget
                                      2011- 2019 Tax-Supported Capital Forecast

2010 – 2019 TAX SUPPORTED CAPITAL BUDGET
TABLE OF CONTENTS:


       EXECUTIVE SUMMARY
1.0    2010 CAPITAL BUDGET HIGHLIGHTS
1.1    2011 - 2019 CAPITAL FORECAST HIGHLIGHTS
1.2    2010 TAX-SUPPORTED INFRASTRUCTURE SUBSIDIES
1.3    FEDERAL/PROVINCIAL – GAS TAX INFRASTRUCTURE SUBSIDIES
2.0    2010 TAX-SUPPORTED CAPITAL LEVY – PROPOSED OPTIONS
3.0    2010 TAX CAPITAL BUDGET PRIORITIZATION PROCESS
4.0    2010 – 2019 TAX SUPPORTED CAPITAL FORECAST
4.1    2010 – 2019 TAX CAPITAL FORECAST ASSUMPTIONS
4.2    TAX-SUPPORTED DEBT AND DEBT FORECAST
5.0    TRANSIT CAPITAL PROGRAM
6.0    GROWTH / ASSESSMENT CAPITAL
6.1    DEVELOPMENT CHARGE RESERVES – TAX SUPPORTED SERVICES
7.0    RESERVES / RESERVE FUND FINANCING
8.0    HAMILTON FUTURE FUNDS
9.0    CONCLUSIONS & SUMMARY



EXECUTIVE SUMMARY:


While 2009 embodied a year of stimulus investments by all three levels of government
in reaction to the economic downturn, the 2010 City of Hamilton Capital Budget
represents the beginning of an era of fiscal challenges, as senior levels of government
are shifting their focus to restraint. The challenge facing local governments is the fact
that they represent the centre of service delivery. It is municipalities that build and
maintain the infrastructure that people use every day.

The 2010 Capital Budget represents an effort to address investments necessary to
meet our capital needs, as well as the need to support municipal investment readiness
and economic development and capacity.




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City of Hamilton FCS09114               2010 Tax-Supported Capital Budget
                                       2011- 2019 Tax-Supported Capital Forecast
The following highlights the 2010 Capital Budget.

                                         Highlights

            •   $294 million in gross capital spending
            •   $83 million in proposed discretionary capital spending
            •   $96.5 million in Provincial and Federal stimulus subsidies
            •   $41 million in development charge funding
            •   $32 million in reserve funding
            •   $57 million in external debt funding
            •   growing requirement for own source capital funding
            •   significant infrastructure gap that will increase over time

In addition to the above highlights the 2010 Capital Budget encompasses the following:

1) Tries to support the City’s infrastructure deficit backlog, specially, the indoor
   recreation and Emergency Services assets.
2) New investment in strategic capital areas such as the Waterfront, Industrial Land
   Development, etc.

The 2010 Capital budget also encompasses the following factors that will influence
future financing strategies.

1) Similar to 2009 the 2010 Gross Capital budget of $294 million relies heavily on
   infrastructure subsidies ($96.5 million) from senior levels of government. Without
   these subsidies, the City would in essence be only able to deal with the most critical
   of asset deterioration emergencies.

2) Previous Budget Reports have documented that the City is falling behind with
   regards to asset maintenance. As the following graphs and tables will illustrate, the
   City’s discretionary capital capacity is limited dramatically starting in 2011.

Taking into consideration all the factors identified above, staff recommend a restoration
of a greater reliance on own source funding. This strategy incorporates a commitment
to long-term annual levy increases of 1%, in an effort to provide flexibility with regards to
current and future capital requirements. This strategy would allow for $330 million more
in capital projects over a 10-year period versus a 0% increase in the capital levy.
Without this commitment, the City’s existing asset base will continue to deteriorate and
new capital will only be affordable through increased debt which in turn will leave even
less for existing capital repair and maintenance as debt and interest repayments grow.

On September 17, 2009, the City’s Committee of the Whole endorsed the following
recommendations;




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City of Hamilton FCS09114                    2010 Tax-Supported Capital Budget
                                            2011- 2019 Tax-Supported Capital Forecast
A. That the Financing Strategy for the tax supported Infrastructure Stimulus Projects,
   identified as Option 2 (i.e. an additional $16.5 million in debt financing for the
   stimulus projects funded through 0.3% tax increase) of report FCS09052(c) be
   approved.
B. That further capital levy increases be considered during the 2010 Capital Budget
   process.

Using the Council approved 0.3% Tax Levy Increase dedicated to Capital as the base
(Option 1), this report provides Council with 2 additional options for consideration,
Option 2 (0.5% Total Levy Increase for Capital) and Option 3 (1% increase) (Refer
Table 1).

Table 1
Proposed Discretionary Capital Budget Funding Options
                                                     Approved by                                Recommended
                                                    Council = base
                                 Annual             OPTION 1               OPTION 2             OPTION 3
                                Funding          0.3% Levy Increase    0.5% Levy Increase   1.0% Levy Increase
                                Required         New Debt = $16.5m      New Debt = $28m     New Debt = $34.2m

Roads Funding               $      75,000,000   $         34,235,000   $       40,000,000   $        44,000,000

Recreation ISF/RInC/REC                         $         51,750,000   $       51,750,000   $        51,750,000
Recreation Block                                $          2,000,000   $        2,000,000   $         2,000,000
Total Recreation            $      20,000,000   $         53,750,000   $       53,750,000   $        53,750,000

Park Development            $      15,000,000   $          3,810,000   $        5,624,000   $         5,624,000
Park Acquisition            $       5,000,000                          $          376,000   $         2,376,000
Council Strategic Capital                       $          5,000,000   $        5,000,000   $         5,000,000
Ec. Dev. Initiatives                            $                -     $        2,500,000   $         2,500,000
Waterfront Dev. Corp.                                                  $        2,000,000   $         2,000,000
Other                                           $         24,500,000   $       23,550,000   $        23,550,000
Total                       $    115,000,000    $        121,295,000   $      132,800,000   $       138,800,000




Staff recommend Option 3, in recognition of the need for sustainable capital funding, as
well as recognition of the current infrastructure deficit, and need for strategic capital
investments. It should be noted that in the next 10-year period, a Capital Levy increase
of 1% (of the total tax levy) versus ½% would provide the tax-supported capital budget
with $165 million in additional, accumulated funding.




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City of Hamilton FCS09114              2010 Tax-Supported Capital Budget
                                      2011- 2019 Tax-Supported Capital Forecast



1.0      2010 CAPITAL BUDGET HIGHLIGHTS:

      1. In 2009, the Federal and provincial governments announced grant
         allocations under the Infrastructure Stimulus (ISF) and Recreation
         Infrastructure (RINC) Programs. With the support of these programs, the
         City’s 2010 Gross Capital Budget is forecast to increase from $198 million
         to $294 million (Option 3).

      2. The recently announced Southern Ontario Pan-Am games require funding
         commitments from the City of Hamilton. To date, the City has committed
         $60 million ($113m total – Province funds the balance) for its contribution
         for a new 15,000 seat Stadium ($55m – City contribution) and for a new
         Track Cycling Velodrome ($5m – City contribution) from the Hamilton
         Future Fund Reserve (HFF), (refer Table 24). The $60m City commitment is
         exclusive of a property tax impact, as funding is committed from the HFF
         Reserve.

      3. The 2010 Tax Capital Budget provides $5 million to fund Councils Strategic
         priorities under all the Options provided. In addition, under Option 3,
         Strategic funding has been provided for Park Acquisition ($2.5m),
         Economic Development Initiatives ($2.5m) and seed money for the
         Waterfront Development Corporation ($2.0m).

      4. The City has over the years progressively reduced the number of
         previously approved but not yet completed Capital projects (Works In
         Progress – WIP). Senior Management Team have approved a corporate-
         wide staff WIP Review Committee. The committee’s mandate will be to
         review WIPs relative to existing and potentially revised capital closure
         policy in an effort to free up existing financial resources for strategic
         priorities.

      5. 2010 Tax Capital Budget in expected to be approved in December 2009.
         Early approval assists staff in reducing costs due to better construction
         pricing as a result of earlier tender opportunities. Also provides staff
         increased time to complete projects thereby reducing carrying costs and
         produces greater Works-In-Progress (W.I.P) efficiencies.


1.1      2011 - 2019 CAPITAL FORECAST HIGHLIGHTS:


      1. Over the last 2-years, the senior levels of government have significantly
         increased infrastructure subsidies to municipalities and subsequently the
         City has been able to address a portion of past infrastructure deficits.



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City of Hamilton FCS09114               2010 Tax-Supported Capital Budget
                                       2011- 2019 Tax-Supported Capital Forecast
         However, both the Provincial and Federal governments are now running
         significant budget deficits and are facing an era of restraint which lessens
         the likelihood of previous partnership funding. As a result, the City’s 10-
         year forecast Discretionary (Block) Capital program for infrastructure
         renewal will be approximately 35% lower on an annual basis (Refer Graph
         pg.13). Capital Funding will go from $294 million in 2010 to a forecasted
         $191 million in 2011 and $177m in 2012. Many of the City’s Capital program
         areas will remain acutely under-funded.

      2. Significant future capital projects which have not been accounted for in the
         financing plans contained within this document include the following;

            -      Light Rail Transit
            -      Downtown Education Centre
            -      Auchmar property redevelopment

      3. 10-year Budgeted Debt Level Forecast Peak under staff’s proposed Option
         3 (2010 - $406 million) is an 8.5% increase from last years forecast debt
         peak (refer Table 13).

      4. For the 10-year Capital Forecast (Option 3 - $6m increase annual to capital
         levy), several infrastructure repair program areas (roads & bridges,
         facilities, housing, forestry and park development) remain under-funded at
         a minimum, $600 million over a 10-year period (Refer Table 10).

      5. In order to provide a sustainable funding to support Capital programs,
         Federal and Provincial partners will be required to continue to provide
         additional infrastructure funding to municipalities, recognizing that many of
         the assets held by municipalities are a legacy of previous Federal and/or
         Provincial funding commitments. In addition, the City will be required to
         increase own source funding through future Capital levy increases through
         the Tax-Supported Budget process. If the City were to increase the Tax-
         supported Capital Levy annually by 1% of the total levy (approximately $6
         million annually), this would add $330 million to the Capital program over a
         10-year period versus 0% increase.


1.2      2010 TAX-SUPPORTED INFRASTRUCTURE SUBSIDIES:

In the Council approved Corporate Strategic Plan for the City of Hamilton, financial
sustainability is one of the major focus areas. An important tool in achieving financial
sustainability is the Tax Supported Capital Budget Program. This critical planning tool
addresses the City’s inventory of capital assets and invests in identified capital priority
programs to maximize long-term community benefit. From a capital repair and
rehabilitation perspective, the municipal objective is to keep the existing inventory of
capital assets in a state of good repair (annual maintenance) and replace them on a



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City of Hamilton FCS09114              2010 Tax-Supported Capital Budget
                                      2011- 2019 Tax-Supported Capital Forecast
timely basis. The City should also have a financial plan which minimizes the impact to
the local taxpayer and smoothes out the long-term financing requirements.

However, like other mature cities, Hamilton’s limited fiscal capacity cannot provide for all
of the funds required to achieve proper asset rehabilitation and replacement. While the
City continues to maximize current funding opportunities, increased future capital
funding transfers from senior governments are a necessary ingredient towards
addressing the current infrastructure reality.

The 2009 Federal Budget established a new $4-billion Infrastructure Stimulus Fund
(ISF) that provides funding towards the rehabilitation or construction of provincial,
territorial, municipal and community infrastructure projects. Additionally, the budget
provided $500 million over two years for RINC support upgrading and renewal of
recreational facilities in communities across Canada. Ontario's 2009 provincial budget
provided $32.5 billon in infrastructure investments over the next two years, including
$195 million for recreation infrastructure projects. Projects under both programs were
selected on the basis of merit and construction readiness.

On June 5, 2009, the Federal and Provincial governments announced grant allocations
under the Infrastructure Stimulus Fund (ISF). Close to 1,200 infrastructure projects in
communities across Ontario will receive a total of $1.85 billion in joint federal and
provincial investments, of which approximately $122.8 million will be directed to 14
Hamilton projects. The total gross cost of the capital projects approved for the City of
Hamilton is $184.1 million. The City, along with the Federal and Provincial
Governments will each be contributing $61.4 million. Approximately $116 million of the
City’s approved projects relate to the rate supported budget and the balance ($68
million) relates to the tax supported budget.

On July 2, 2009, the Federal and Provincial governments announced grant allocations
under the new Recreational Infrastructure Canada (RInC) Program in Ontario and
Ontario Recreation Programs (REC). RInC and REC funding announcements
committed $380 million towards 758 projects, fully subscribing the program just one
month after it was launched. Of the total commitment approximately $13.6 million will
be directed to 7 City of Hamilton projects. The total gross cost of the capital projects
approved for the City of Hamilton is $20.5 million. The City, along with the Federal and
Provincial Governments will each be contributing approximately $6.8 million. The focus
of the grant programs has centered on the current and accumulated repair deficits in
recreation facilities, parks development and the Emergency Services Training facility as
illustrated by Tables 2 and 3.




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City of Hamilton FCS09114                                             2010 Tax-Supported Capital Budget
                                                                     2011- 2019 Tax-Supported Capital Forecast

      TABLE 2
      City of Hamilton Approved RINC Projects
                                                                                                             Approved RINc Funding
       RINc                                          Project Title                            Federal       Provincial       Municipal      Total
      Project
         #


            3   Turner Park Ball Sports Field Lighting and Washroom Facility                    550,000         550,000          550,000    1,650,000
            9   Chedoke Arena Twin Pad Rehabilitation                                           550,000         550,000          550,000    1,650,000
           13   Carlisle Arena Rehabilitation                                                   550,000         550,000          550,000    1,650,000
           16   Inch Park Arena Rehabilitation                                                  550,000         550,000          550,000    1,650,000
           18   Rosedale Arena Rehabilitation                                                   550,000         550,000          550,000    1,650,000
           19   Inch Park Outdoor Pool Rehabilitation                                           666,667         666,667          666,667    2,000,001
                Morgan Firestone Arena Twinning                                               3,425,000       3,425,000        3,425,000   10,275,000
                                                                                              6,841,667      6,841,667        6,841,667    20,525,001



       TABLE 3
       Approved Infrastructure Stimulus Plan Projects
                                                                                               Approved ISF Funding
         ISF
                                             Project Title                        Federal     Provincial   Municipal       Total
       Project #


                   Total Rate Projects                                           38,800,001   38,800,001   38,799,998    116,400,000


                   Emergency Services Training Facility /Emergency Operations
           1728                                                                   8,333,333    8,333,333    8,333,334     25,000,000
                   Centre
           2344 Westmount Recreation Centre                                       7,000,000    7,000,000    7,000,000     21,000,000
           2296 Lower Stoney Creek Recreation Centre - Phase One                  4,333,333    4,333,333    4,333,334     13,000,000
           2380 Coronation Arena Redevelopment                                    1,000,000    1,000,000    1,000,000      3,000,000
           2400 Sir Allan MacNab Rehabilitation Project                           1,000,000    1,000,000    1,000,000      3,000,000
           2411 Sir Wilfrid Laurier Rehabilitation                                  500,000      500,000      500,000      1,500,000
            898 Energy Retrofit - Lister District Energy Expansion                  400,000      400,000      400,000      1,200,000
                   Total Tax Projects                                            22,566,666   22,566,666   22,566,668     67,700,000


                   Total Infrastructure Stimulus Projects                        61,366,667   61,366,667   61,366,666    184,100,000


                                                                                   Debt        WIP         DC             Other     Total
                   Total ISF and RINC Tax Projects Financing                    16,530,000     720,000 11,758,334         400,000 29,408,334




1.3       Federal / Provincial – Gas Tax Infrastructure Subsidies:

In November of 2005, the City of Hamilton signed a Funding Agreement
with the Association of Municipalities of Ontario with respect to the sharing of Federal
gas tax revenues under the “New Deal for Cities and Communities”. Under the terms of
Eligible Categories of the “Agreement”, the City of Hamilton has the flexibility to use
funds towards the following categories: Public Transit, Water, Wastewater, Solid Waste,
Community Energy Systems (includes building energy retrofits), and Local Roads,
Bridges, Tunnels and Active Transportation Infrastructure (e.g. bike lanes) that enhance
sustainability outcomes.

Staff continues to recommend that the Federal gas tax revenues be directed to our
current under funded tax supported categories, i.e. tax levy funded such as roads and
facilities. Similarly, staff are not recommending that funding be directed to rate



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City of Hamilton FCS09114              2010 Tax-Supported Capital Budget
                                      2011- 2019 Tax-Supported Capital Forecast
supported categories, as these services are intended to be self sustaining through user
fees, consistent with the Sustainable Water and Sewer Systems Act, and the Federal
Water Policy. An accounting of funds will be provided through an Audit Report and an
Annual Expenditure Report. In addition, municipalities in Ontario, through AMO, will
provide an Outcome Report, highlighting the achievements of the Gas Tax Funding.


2.0   2010 TAX-SUPPORTED CAPITAL LEVY – PROPOSED OPTIONS:

On September 17, the City’s Committee of the Whole recommended the following;

C. That the Financing Strategy for the tax supported Infrastructure Stimulus Projects,
   identified as Option 2 (i.e. $16.5 million in debt financing funded through 0.3% tax
   increase) in report FCS09052(c) be approved.
D. That further capital Levy increases be considered during the 2010 Capital Budget
   process.

Using the Council approved 0.3% Tax Levy Increase dedicated to Capital as the base
(Option 1), this report provides Council with 2 additional options for consideration,
Option 2 (0.5% Total Levy Increase for Capital) and Option 3 (1% increase) (Refer
Table 4).

The City’s Senior Management Team has endorsed Option 3, in recognition of the City’s
under-funding of the Capital Program in previous years and the Capital Program’s role
in the City’s Strategic Plan with regards to financial sustainability. Evidence of the
under-funding of the City’s Capital Program is based on the following facts;

a) Capital Levy as a percentage of the total levy has declined from 13.4% to 11.9%
   (i.e., operating levy has increased at a greater rate than the capital levy).
b) External debt financing has declined from 7.9% to 5.3% of the total levy.
c) Funding through contribution from operating has not increased over the last few
   years.

The following are the assumptions used for each of the funding options and Table 4
summarizes how the funding for the major program areas are affected under each
option.

      Option 1 -    0.3%, $1.7 million Tax Levy increase, to fund debt costs on
                    additional debt of $16.5 million to fund the recreation projects as
                    noted in Table 3 of report FCS09052(c)

      Option 2 -    0.5% dedicated capital Tax Levy increase of $2.9 million, used to
                    fund debt costs on additional debt of $28.2 million for ISF,
                    RInC/REC and other strategic capital investments




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City of Hamilton FCS09114                        2010 Tax-Supported Capital Budget
                                                2011- 2019 Tax-Supported Capital Forecast
          Option 3 -        1% dedicated capital Tax Levy increase of $5.8 million, used to
                            fund debt costs on additional debt of $34.2 million for ISF,
                            RInC/REC and other strategic capital investments

Table 4
Proposed Discretionary Capital Budget Funding Options
                                                      Approved by                                Recommended
                                                     Council = base
                                 Annual              OPTION 1               OPTION 2             OPTION 3
                                Funding           0.3% Levy Increase    0.5% Levy Increase   1.0% Levy Increase
                                Required          New Debt = $16.5m      New Debt = $28m     New Debt = $34.2m

Roads Funding               $      75,000,000    $         34,235,000   $       40,000,000   $        44,000,000

Recreation ISF/RInC/REC                          $         51,750,000   $       51,750,000   $        51,750,000
Recreation Block                                 $          2,000,000   $        2,000,000   $         2,000,000
Total Recreation            $      20,000,000    $         53,750,000   $       53,750,000   $        53,750,000

Park Development            $      15,000,000    $          3,810,000   $        5,624,000   $         5,624,000
Park Acquisition            $       5,000,000                           $          376,000   $         2,376,000
Council Strategic Capital                        $          5,000,000   $        5,000,000   $         5,000,000
Ec. Dev. Initiatives                             $                -     $        2,500,000   $         2,500,000
Waterfront Dev. Corp.                                                   $        2,000,000   $         2,000,000
Other                                            $         24,500,000   $       23,550,000   $        23,550,000
Total                       $     115,000,000    $        121,295,000   $      132,800,000   $       138,800,000



The announcement of the ISF and RInC/REC approved projects provides the
opportunity for the City to invest approximately $68.2 million to leverage $136.4 million
in funding from the senior levels of government. Additionally, the ISF and RInC/REC
programs promote economic stimulus to the local economy and the creation of jobs.

All of the Federal and Provincial contributions to economic stimulus funding are being
debt financed. Since many of the City’s tax based ISF projects that were approved
were not funded in the 10 year capital forecast, additional debt financing will have to be
considered, alternatively the remaining capital forecast will have to be constrained. Staff
are recommending Option 3, in recognition of the potential for limited funding from
higher levels of government in 2011 and beyond, as well as the recent trend in a lower
reliance of own source funding, and finally the City’s Strategic Plan with regards to
financial sustainability. Tables 5 and 6 illustrate the Tax Levy Impact of Option 3 and the
components of the proposed tax-supported Capital levy (debt and direct dollar for dollar
capital funding (transfer to operating)).




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City of Hamilton FCS09114                 2010 Tax-Supported Capital Budget
                                         2011- 2019 Tax-Supported Capital Forecast
TABLE 5
Tax Levy Impact Summary
($ Millions)
                                2001     2002    2003     2004    2005     2006    2007    2008
Total Tax Levy                   461.3   477.1    495.5   527.4   555.3    574.4   601.6   630.1
Capital Levy                      60.4    62.8     66.3    69.3    71.4     73.5    75.0    77.7
Capital Levy % of Total Levy    13.1% 13.2% 13.4% 13.1% 12.9% 12.8% 12.5% 12.3%



TABLE 6
CAPITAL BUDGET IMPACT ON OPERATING BUDGET
($000's)                                     0.9% Levy Increase
                             2009           2010        CHANGE
                           APPROVED       PROPOSED      $       %

Debt Charges                   47,907            49,847   1,940     4.0%
Transfer from Operating        29,629            33,489   3,860    13.0%

Total Impact                   77,536            83,336   5,800     7.5%

           Impact on Average Residential Tax              1.0%

As per Table 6, in 2009, $77.5 million (11.9 % of the City’s $649 million tax levy) was used
for capital purposes. For 2010, staff are recommending a $83.3 million capital envelope
consisting of $49.8 million in budgeted debt charges and a $33.5 million transfer from
operating to capital (direct dollar funding). This is an increase of 7.5% ($5.8 million) over
the previous year.


The following 2 pie charts illustrate the 2010 Capital funding sources and programs.




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City of Hamilton FCS09114                                         2010 Tax-Supported Capital Budget
                                                                 2011- 2019 Tax-Supported Capital Forecast


                         2010 Capital Funding - $293.9 Million


                        External Debt,
                                                                                                            Subsidy /
                         $56.8M , 19%
                                                                                                              Other
                                                                                                            Revenue,
                                                                                                           $96.4M, 33%
 Transfer from
  Operating,
 $32.7M , 11%


               DC's                                                                             Fed. Gas Tax
            $41.3M, 14%                                                                          $31.9M, 11%
                                                                    Reserves,
                                                                   $34.8M, 12%



                                    2010 Capital Budget by Program
                                            $293.9 Million

                                 Council Strategic Proj.          Planning & Ec. Dev.   Other
                                          3%                              5%             3%

             Downtn/Waterfront                                                                             Roads
                   2%                                                                                       27%




   Emergency Services
         14%




                                                                                                                   Parks / Forestry
             Fleet                                                                                                       5%
              2%


                                                                                                 Transit                Waste Mgmt.
                                                    Facilities                                     5%                       1%
                                                      33%




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City of Hamilton FCS09114                2010 Tax-Supported Capital Budget
                                        2011- 2019 Tax-Supported Capital Forecast



3.0      2010 TAX CAPITAL BUDGET PRIORITIZATION PROCESS:

Prior to 2002, the City of Hamilton used a corporate ranking system to prioritize Capital
projects for the City’s Capital Program. Shortcomings of this methodology included the
following;

      1. Incompatibility of ranking hard infrastructure projects (roads) against capital
         projects in program areas such as culture, recreation, studies,…etc. The specific
         ranking methodology used was geared for the ranking of “public-works” projects.

      2. Not conducive to long-term capital planning. Program areas did not know from
         one year to the next how many of their projects would be approved and therefore
         could not complete long-term work plans, proper staffing levels,…etc.

      3. Program areas submitted annually many more projects than they could
         realistically complete in the hope that the more they submitted, the more there
         was a chance that some of them would be approved.

      4. A staff committee approved the final ranking scores of projects which may not
         reflect a project’s ranking within a specific program area. Program areas ranked
         their capital based on criteria specific to their needs which included input from
         various stakeholders associated with the public (i.e., the taxpayer). The corporate
         ranking system did not take this into account and therefore was deficient in
         recognizing these characteristics.

Starting with the 2002 City Capital Budget Process (refer FCS02017), Council approved
a hybrid Capital Block Funding Prioritization methodology. This process sought to
improve upon the short-comings referred to above for the major program areas while
still providing funding for strategic capital projects subject to direct Council input.




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City of Hamilton FCS09114             2010 Tax-Supported Capital Budget
                                     2011- 2019 Tax-Supported Capital Forecast

How did staff determine the specific Blocks of Funding for the affected program areas?
The process for the 2010 Capital Budget was as follows:

a)    Staff met in the third quarter of 2009 to determine the discretionary funding
      available from the most current information available. (Discretionary funds are
      those funds whose use could be directed to any Capital program area. This
      would not include specific use reserve funds (DC’s, Fleet, Transit,…etc) or any
      other funding whose use is limited to a specific purpose.

b)    Similarly staff met in the third quarter of 2009 to determine needs and create
      funding strategies based on those needs versus financial constraints.
      Quantitative Block Funding strategies were based on historical funding averages,
      masterplan requirements and subsidy eligibility. For comparative purposes, the
      average block funding for the past 3 years (2007–2009) for Roads and Park
      Development is $45.7 million and $4.7 million respectively.

c)    Capital projects receiving significant subsidy and/or approved by Council prior to
      Capital Budget deadlines receive priority in the Block-Funding process.

The following Table 7 summarizes the 2010 Capital Budget by program area and
compares it to the previous year’s capital program. Please note that the last 2 columns
on the right illustrate the impacts should Council choose Option 1 (0.3% increase) or
Option 2 (0.5% increase). For example, under option 1, the roads program is $9.8
million less in projects than Option 3. Appendix A attached provides detail with regards
to the individual capital projects which make up the capital program area amounts and
the projects are presented in priority order so that any deletions from a program area
would impact those projects at the bottom of the order.




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City of Hamilton FCS09114                       2010 Tax-Supported Capital Budget
                                               2011- 2019 Tax-Supported Capital Forecast


TABLE 7
REFER APPENDIX A (ATTACHED) FOR PROGRAM AREA PROJECT DETAIL
                                                                              1%               .5%         .3%
2010 PROPOSED TAX CAPITAL BUDGET ($000's)       2009 APPROVED           2010 PROPOSED        IMPACT      IMPACT
                                                                            OPTION 3        OPTION 2    OPTION 1
                                                GROSS       NET         GROSS     NET          NET         NET
                                                  $          $             $        $            $           $
Proposed Block Funding

Recreation Program                                15,030     12,000       2,000     2,000       2,000       2,000
Culture Program                                    1,047         797      1,931     1,593       1,593       1,593
Public Art Program                                  250          250       250       250         250         250
Downtown Renewal\Waterfront                        2,500        2,500     3,000     3,000       3,000       3,000
Downtown Renewal - Suburban Downtowns               250          250       250       250         250         250
Fleet and Facilities – Corporate Buildings         9,505        4,615     6,558     6,000       6,000       6,000
Forestry Maintenance Includes Tree Planting)       1,500        1,500     1,500     1,500       1,500       1,500
Open Space Development                            12,046        6,478    11,508     7,770       5,770       3,765
Housing                                             500          500       500       500         500         500
Parks & Cemeteries                                 2,404        1,286     1,251     1,200       1,200       1,200
Public Health                                       250           88       250       250         250         250
Community Services - Other Divisions                250          250       250       250         250         250
Roads                                             82,949     59,600      79,040    44,000      40,000      34,235
Total Block Funding                              128,481     90,114     108,288    68,563      62,563      54,793
Special Levies & Boards

HECFI Renovations & Replacements                   1,600           0      1,350        0           0           0
Hamilton Public Library                            2,630        1,000     1,940      250         250         250
Conservation Authorities                           1,859        1,859     2,005     2,005       2,005       2,005
Total Special Levies & Boards                      6,089        2,859     5,295     2,255       2,255       2,255

Other Major Projects

City Hall Renovations                             26,916     26,916      15,400    15,400      15,400      15,400
Council Strategic Initiatives                     13,000     13,000       9,500     9,500       9,500       7,000
Waterfront Development Corp.-Seed Funding               0          0      2,000     2,000       2,000          0
Housing Renovations                                3,000        1,500     3,490     1,406       1,406       1,406
Hamilton Emergency Services                       10,252        3,357    13,604     7,889       7,889       7,889
Waste Management                                   6,436        6,402     4,158     3,392       3,392       3,392
ISF\RINc Projects                                       0          0     88,685    16,611      16,611      16,611
Planning & Development                             8,885        3,200     4,260      642         642         642
Transit Services                                  18,499           0     14,862         0          0           0
Information Technology                             1,448           0      3,500      880         880         880
Pan Am Games                                            0          0      5,573        0           0           0
Industrial Land Development                        1,515          0       5,650         0           0           0
Total Other Major Projects                        89,951     54,375     170,682    57,720      57,720      53,220

Other Recommended Projects                         7,265         682      9,648     2,073       2,073       2,073

Total Affordable Projects                        231,786    148,030     293,913   130,611     124,611     112,341




                                                Page 14 of 46
City of Hamilton FCS09114                                          2010 Tax-Supported Capital Budget
                                                                  2011- 2019 Tax-Supported Capital Forecast
4.0             2010 – 2019 TAX SUPPORTED CAPITAL FORECAST:

This section of the report examines the 10-year City of Hamilton tax-supported
affordable capital program as well as a source of funds forecast.

As per the following 12-year Capital Budget graph, the proposed 2010 Capital Budget of
$294 million declines significantly in future years based on current funding information.
While the 2010 Capital Budget has decreased the annual infrastructure deficit, future,
much smaller Capital Budgets will increase this deficit significantly.


                            CAPITAL BUDGET FORECAST (GROSS $'s)
               350
                                                                                       294
               300
                                                            232               232
               250                        215
  $ MILLIONS




                                 183               184                                          191
                                                                                                         177      172      168
               200      160                                          150
               150
               100
                50
                 0
                       03


                                04


                                         05


                                                  06



                                                           07


                                                                    08


                                                                             09


                                                                                      10



                                                                                               11


                                                                                                        12


                                                                                                                 13


                                                                                                                          14
                     20


                              20


                                       20


                                                20



                                                         20


                                                                  20


                                                                           20


                                                                                    20



                                                                                             20


                                                                                                      20


                                                                                                               20


                                                                                                                        20
                                                                         YEAR


The City’s declining capital affordability is due to;

a) Decreased Capital Funding capacity due to major capital project debt commitments
   (refer Table 8).
b) Aging Infrastructure.
c) A reduced amount of property tax revenue (proportionate) dedicated to capital.
d) Inflationary pressures of capital expenditures.

Table 9 and the detailed analysis of the above a) to d) in the following pages will
illustrate the critical situation of the City’s long-term Capital Forecast and consequently
the rationale for the staff’s recommended long-range financing plan. Table 9 is a 10-
year forecast of the amount of discretionary capital available. For that Table, staff have
used 2010 as the base for the dollar amounts assigned to each program area and
distributed any annual over-all funding reductions/increases on a proportionate basis
per program area. This Table illustrates the fact that for all program areas, future
available funding is in decline until 2015. Council can redirect this funding to priority
areas. Of note is that discretionary funds do not include funding from reserves and
development charges or any other source for which their use is restricted by legislation
or policy. That is why the gross total of capital funding available is always greater than




                                                                   Page 15 of 46
City of Hamilton FCS09114               2010 Tax-Supported Capital Budget
                                       2011- 2019 Tax-Supported Capital Forecast
the discretionary funding available. Council can redirect discretionary funding to any
priority Capital program area.

a) Decreased Capital Funding capacity due to major capital project debt commitments
   (refer Table 9). Past expenditures on the major projects listed below make up a
   significant portion of the $49.8 million debt charge component of the Capital Levy
   (approximately $17.5 million).

   TABLE 8

   MAJOR PROJECTS EXPENDITURES/DEBT FINANCING
   ($ Millions)
                      2009 &
                       Prior 2010  2011   2012                 2013    2014    Total
   Red Hill Valley Project   439.0                                             439.0
   City Hall                   58.5   15.4                                      73.9
   Waste Management          123.1     4.2     6.4      24.9    10.0    13.2   181.8

   Total                     620.6    19.6     6.4      24.9    10.0    13.2   694.7


b) Aging Infrastructure.

   In a report for the Federation of Canadian Municipalities dated November 2007, it
   states “Canadian municipalities build, own and maintain most of the infrastructure
   that supports our economy and quality of life. Yet for the past 20 years,
   municipalities have been caught in a fiscal squeeze caused by growing
   responsibilities and reduced revenues. As a result, they were forced to defer needed
   investment, and municipal infrastructure continued to deteriorate, with the cost of
   fixing it climbing five-fold from an estimated $12 billion in 1985 to $60 billion in 2003.
   This cost is the municipal infrastructure deficit, and today it has reached $123
   billion.The $123 billion estimate includes sub deficits for key categories of municipal
   infrastructure: water and waste water systems ($31 billion), transportation ($21.7
   billion), transit ($22.8 billion), waste management ($7.7 billion) and community,
   recreational, cultural and social infrastructure ($40.2 billion)…..”

   Each piece of municipal infrastructure when new should have funding set aside
   annually so that at the end of its useful life there would be reserve funds equal to the
   replacement cost. Municipalities dependant upon property taxes have not had the
   fiscal capacity to set aside such funds. As a result, all municipalities are
   experiencing annual infrastructure deficits as well as having a significant
   accumulated backlog of repairs (refer Table 10). Moving towards a sustainability
   model is critical for the City as the deficiency in providing capital funding to assets
   will result in increased incremental operating maintenance costs. While the 2009 and
   2010 Capital Budgets effectively started to deal with the roads and recreation facility
   infrastructure deficits, by 2011 and beyond, the annual infrastructure deficits will be
   in the neighborhood of $60 million annually (Option 3). As an asset progresses



                                        Page 16 of 46
City of Hamilton FCS09114                                                  2010 Tax-Supported Capital Budget
                                                                          2011- 2019 Tax-Supported Capital Forecast



TABLE 9

Discretionary Tax Supported Net Capital Funding Forecast 2010 - 2019                                         (Excludes City Hall, SWMMP)            Special Capital Levy (1%) $5.8M
                  ($000's)                      0% increase in Capital Levy in 2009, 1% ($5.8M) in 2010 & $6.0 M 2011 - 2019                        $34.165M debt incl.16.530M Stimulus Pro

Sources of Funding (Net)                           2009         2010        2011        2012        2013        2014        2015        2016           2017         2018         2019
                                                 Approved     Proposed    Proposed    Proposed    Proposed    Proposed    Proposed    Proposed       Proposed     Proposed     Proposed
Contribution from Operating                         15,829       27,289      30,445      33,727      39,367      44,561      49,448      51,723         62,843       73,241        78,095
External Debt                                        4,000       22,640       6,000       8,000       7,000       6,000       5,000         -               -           -             -
Hydro Dividends ($2M)                                2,000        2,000       2,000       2,000       2,000       2,000       2,000       2,000          2,000        2,000         2,000
Federal Gas Tax                                     31,893       31,893      31,893      31,893      31,893      31,893      31,893      31,893         31,893       31,893        31,893
Total Financing Plan - Discretionary                53,722       83,822      70,338      75,620      80,260      84,454      88,341      85,616         96,736      107,134       111,988
Previous Yrs. Budgeted Debt Savings                  2,250        2,000       2,000       2,000       2,000       2,000       2,000       2,000          2,000        2,000         2,000
Transfer from Unallocated Cap Reserve               14,293          478       3,309       2,779       2,779       1,805       1,026       1,026          1,000        1,000         1,000
WIP Funding Interest                                 1,000          500         500         500         500         500         500         500            500          500           500
Provincial Infrastructure Subsidy                   48,000
WIP adjustments                                        500         -           -           -            -           -          -              -             -           -             -
Total Funding (Net)                                119,765      86,800      76,147      80,899       85,539      88,759     91,867         89,142       100,236     110,634       115,488

Expenditures (net)
Roads                                              59,600      44,000      35,967      39,779      42,649      44,639      46,587      44,892          55,806      62,914        66,158
Corporate Facilities                                4,435       6,000       5,840       6,080       6,520       6,830       7,120       6,860           6,910      10,480        11,030
Recreation Facilities                              15,000       2,000       9,890      10,290      11,040      11,560      12,050      11,620          11,690      11,530        12,130
Cultural Facilities                                   797       1,500       1,350       1,400       1,510       1,580       1,640       1,580           1,590       1,570         1,650
Hamilton Downtown                                   2,465       3,000       2,700       2,810       3,010       3,150       3,290       3,170           3,190       3,150         3,310
Suburban Downtowns                                      250        250         250         250          250         250        250            250           250         250           250
Tree Planting                                         1,500      1,500       1,500       1,500        1,500       1,500      1,500          1,500         1,500       1,500         1,500
Park's Operations                                     1,286      1,200       1,200       1,200        1,200       1,200      1,200          1,200         1,200       1,200         1,200
Park Development / Aquisition                         6,478      8,000       3,600       3,740        4,010       4,200      4,380          4,220         4,250       4,190         4,410
Housing                                                 500        500         500         500          500         500        500            500           500         500           500
Social Services                                         250        250         250         250          250         250        250            250           250         250           250
Public Health                                           250        250         250         250          250         250        250            250           250         250           250
Corporate Projects                                      100        100         100         100          100         100        100            100           100         100           100
Public Art                                              250        250         250         250          250         250        250            250           250         250           250

Block Funding Total                                93,161      68,800      63,647      68,399      73,039      76,259      79,367      76,642          87,736      98,134       102,988
Major Capital Initiatives
Housing rehab                                         1,500        -
Social Services                                         636        333
Public Health Bus                                       250
Corporate Services                                      231        425
Randle Reef                                           3,000      2,000
DC exemptions                                           -          -         2,500       2,500        2,500       2,500      2,500          2,500         2,500       2,500         2,500
Lodges                                                             500
Fire / EMS                                            3,357        250       2,000       2,000        2,000       2,000      2,000          2,000         2,000       2,000         2,000
ITS                                                                880
Forestry / Parks - Other                               571       1,215
Central Library Improvements                         1,000         250
Airport                                              3,000
Planning / Development                                 200         642
Hamilton Conservation Authority                      1,859       2,005       2,000       2,000        2,000       2,000      2,000          2,000         2,000       2,000         2,000
Downtown Market - Incr. in Construction Costs        1,000         -
Waterfront Development Corp.                                     2,000
Economic Development Initiatives                      5,000      2,500
Other                                                                        3,000       3,000        3,000       3,000      3,000          3,000         3,000       3,000         3,000
Council Strategic Capital                             5,000      5,000       3,000       3,000        3,000       3,000      3,000          3,000         3,000       3,000         3,000
Total Expenditures (Net)                           119,765      86,800      76,147      80,899       85,539      88,759     91,867         89,142       100,236     110,634       115,488




                                                                            Page 17 of 46
City of Hamilton FCS09114                          2010 Tax-Supported Capital Budget
                                                  2011- 2019 Tax-Supported Capital Forecast

      through its life cycle, the lack of capacity to provide funding for life cycle activities
      impacts the operating and maintenance costs which can increase at an exponential
      rate.

          TABLE 10
          Infrastructure Funding Shortfall Forecast ($000's)

                                                                      10 yr. Annual      Projected
                                                                        Average            Annual
                                                     2010           Funding Forecast   Infrastructure
                                                   Required           (2010 - 2019)        Deficit

          Roads                                            75,000             48,000           27,000
          Corpoate Facilities (Excl. CH)                   20,000              7,000           13,000
          Indoor Rec. Facilities                           20,000             17,000            3,000
          Parks                                            15,000              5,000           10,000
          Forestry                                         10,000              2,500            7,500
          Total                                           140,000             79,500           60,500

          Note: Excludes provisions for Replacement reserves


e) A reduced amount of property tax revenue (proportionate) dedicated to capital
   expenditures (Levy dollars required to mitigate increased operating and program
   pressures). Refer Table 5.

d) Inflationary pressures of capital expenditures relative to the inflationary capacity of
   property tax increases. The cost of asset rehabilitation and new construction has far
   outpaced the City’s property tax increases as evidenced by Table 11.

      TABLE 11
      Inflationary Pressures on Capital Expenditures - (%)

                                                             2003     2004     2005     2006      2007   2008
      Non-Residential Building Construction Price Index      3.69     6.62      5.3     6.76      6.74   8.58
      Property Tax Increase                                   3.6      5.6      3.5      1.7       3.7    4
      Net Inflationary Pressure                              0.09     1.02      1.8     5.06      3.04   4.58




4.1      2010 – 2019 TAX CAPITAL FORECAST ASSUMPTIONS:

1. The capital forecast for 2010 – 2019 (Table 8) assumes a 1% increase in the total
   tax levy (approximately $5.8 million) dedicated to capital financing for 2010 and then
   a 1% increase (approximately $6m) annually starting in 2011.

2. Budgeted debt financing. For 2010 debt financed capital projects, it is assumed that
   debt repayments start July 1 (at 6.00% amortized over 15 years). For previously




                                                   Page 18 of 46
City of Hamilton FCS09114              2010 Tax-Supported Capital Budget
                                      2011- 2019 Tax-Supported Capital Forecast
   approved capital projects (Works-In-Progress – W.I.P.’s), July 1 is also the date that
   debt repayments start accruing.

3. Federal/Provincial Infrastructure Subsidy – Gas Tax Revenues. The majority of
   municipalities cannot meet the cost of proper infrastructure repair and rehabilitation.
   In response, the Federal government is contributing 5 cents per litre of gas sold to
   municipalities for this issue. This subsidy is now fixed annually at $31.89 million.

4. Hamilton Hydro Capital Funding Dividend. Based on the Hamilton Hydro Dividend
   Policy brought before Council on November 1, 2004, we have incorporated $2
   million in dividends from Hydro to fund the Capital Program in 2010 and $2 million in
   each subsequent year thereafter.

5. Operating Costs. The operating impact of capital projects are identified on the “2010
   – 2019 Capital Budget Project List” and on the “Capital Budget Project Detail
   Sheets.” Over the last 9 years, these operating costs have not been incorporated
   into the City’s budget except for large significant capital projects. For 2010, staff
   recommend incorporating the operating impact of capital projects in the 2011
   operating budget.
   As has been the case in previous years, a rationing problem exists in the 10 year
   capital financing plan. While submitted capital projects for the next 10 years total
   approximately $2.7 billion, the 2010 - 2019 capital forecast can only support $1.9
   billion in new capital projects. This leaves the City with an approximate $800 million
   funding gap taking into account the required levels of infrastructure repair and
   rehabilitation.

   Table 8 provides a 10-year discretionary capital forecast for 2010 – 2019
   summarized by program area and the amount of discretionary funding available. It
   does not include available funding which must be used for a specific purpose
   (dedicated reserves such as Development Charges, Fleet,…etc). Discretionary
   funds may be directed by Council to whatever purpose it deems necessary. Table 8
   assumes a 1% increase of the total tax levy (approximately $6m) dedicated to
   Capital financing for 2010 and then a 1% increase (approximately $6m) per annum,
   starting in 2011. The funding amounts allocated to the various program areas
   starting in 2011 are on a prorated basis using the 2010 program block funding as the
   base.




                                       Page 19 of 46
City of Hamilton FCS09114                   2010 Tax-Supported Capital Budget
                                           2011- 2019 Tax-Supported Capital Forecast


                    2010 - 2019 Capital Forecast by Program
                                  $1.95 Billion
                             Council Strategic     Other
        Dow ntn/Waterfront        P roj.            8%
                2%                 2%

 Em ergency Services
         6%                                                                      Roads
                                                                                  39%
            Fleet
             5%



           Facilities
             16%

                             Transit
                                                       Waste       Parks / Forestry
                               7%
                                                        10%               5%




              2010 - 2019 Capital Funding Forecast
                          $1.95 Billion
                                                                 Subsidy /
                 External Debt,                                    Other
                 $286.6M , 15%                                   Revenue,
                                                               $261.0M, 13%
                                                                             Fed. Gas Tax
                                                                             $319.0M, 16%

 Transfer from
  Operating,
 $496.1M , 26%

                                                                        Reserves,
                                                                      $337.9M, 17%
                             DC's
                         $245.1M, 13%




                                            Page 20 of 46
City of Hamilton FCS09114                2010 Tax-Supported Capital Budget
                                        2011- 2019 Tax-Supported Capital Forecast
Table 12 examines a 5-year funding forecast and related capital requests. In
conclusion, without additional senior levels of government infrastructure subsidies, the
City would experience over a $295 million infrastructure funding shortfall for the 5-year
period (2010 – 2014).

TABLE 12
2010 - 2014 CAPITAL FORECAST
PROJECTED GROSS CAPITAL & FUNDING SOURCES

                                                                                                     5 YEAR
SOURCES OF FINANCING             2009        2010         2011      2012        2013      2014       TOTAL

SUBSIDY / OTHER REVENUE           80,014      96,413      27,341     19,410     18,299     18,533     179,996
RESERVES                          43,957      31,445      22,994     39,035     45,382     34,067     172,923
DEVELOPMENT CHARGES               24,005      41,272      43,872     20,000     20,000     20,000     145,144
HAMILTON FUTURE FUND               5,422       3,392       6,412      2,318        -          -        12,122
FEDERAL GAS TAX                   31,643      31,893      31,893     31,893     31,893     31,893     159,465
TRANSFER FROM OPERATING           28,829      32,689      30,445     33,727     39,367     44,561     180,789
EXTERNAL DEBT                     17,916      56,809      28,000     30,509     17,014     19,186     151,518
TOTAL CAPITAL FINANCING
AVAILABLE                        231,786    293,913      190,957    176,892    171,955    168,240    1,001,957

TOTAL CAPITAL SUBMITTED          255,313    314,854      231,858    250,672    252,790    247,160    1,297,334

UNAFFORDABLE                     (23,527)    (20,941)    (40,901)   (73,780)   (80,835)   (78,920)    (295,377)



4.2   TAX-SUPPORTED DEBT AND DEBT FORECAST:

In the proposed 2010-2019 ten-year financing plan, tax-supported budgeted external -
debt levels peak in 2010 at $406 million (this is the debt level which most concerns
bond-rating agencies - refer Table 13 and corresponding debt charge graph). As one of
its objectives, staff will hold the line on increasing the City’s external debt past the
current debt peak forecast. Table 13 and the following debt graphs provide the
projected actual debt forecast, debt levels and debt charge amounts. The actual debt
forecast takes into account the many reasons that delay capital projects and assumes
on a declining basis that debt is issued only as capital expenditures occur. Bond Rating
Agencies are most focused on the level of external debt in accessing investor risk, as
opposed to internal debt.




                                         Page 21 of 46
City of Hamilton FCS09114                                 2010 Tax-Supported Capital Budget
                                                         2011- 2019 Tax-Supported Capital Forecast
TABLE 13

TAX SUPPORTED EXTERNAL DEBT FORECAST
($Millions)
                                                2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2010 - 2019 FINANCING PLAN
TAX SUPPORTED                                   228      342      344         348      334        320        303   319    319    309   277
FUNDED FROM DC's                                 69      64        59          54          49          44     39    33    28     23    19
TOTAL BUDGETED DEBT                             297      406      403         402      383        364        342   352    347    332   296

PROJECTED ACTUAL                                297      340      340         330      330        320        300   300    300    300   280


2009 - 2018 FINANCING PLAN
TAX SUPPORTED                                   306      297      280         287      283        270        295   293    271    257
FUNDED FROM DC's                                 69       64       59          54       49         44         39    33     28     23
TOTAL BUDGETED DEBT                             375      361      339         341      332        314        334   326    299    280




                                       PROJECTED DEBT CHARGES
                                                                                                74.2
                                                          68.7      69.4            70.5                    69.0
                80.0                    66.2     68.8
                                                                                                                   63.1   64.1
                70.0           57.9                                                              7.4
                       56.0                                             7.4          7.4                    7.3
                                                  8.0      7.5
                60.0                     8.1                                                     11.8              5.8    5.7
                                                                                    11.9                    9.0
   $ MILLIONS




                                 8.1              13.4     13.6      12.6                                                 9.0
                        8.1              13.6                                                                      9.0
                50.0

                        14.1    13.4
                40.0

                30.0
                                                                                    51.2         55.0       52.7
                                                  47.4     47.6      49.4                                          48.3   49.4
                20.0
                                         44.5
                        33.8    36.4
                10.0

                 0.0
                        2009    2010     2011     2012     2013     2014            2015        2016        2017   2018   2019

                                                                  YEAR

                       External Debt                     Internal Debt                             DC Funded




                                                           Page 22 of 46
City of Hamilton FCS09114                   2010 Tax-Supported Capital Budget
                                           2011- 2019 Tax-Supported Capital Forecast
5.0     TRANSIT CAPITAL PROGRAM:

Table 14 provides a 5 year forecast of the City’s Transit Service capital program. The
Transit 5 year capital plan is mostly funded from transit reserves and subsidy. The
transit vehicle reserve currently has a $3.7 million annual provision built into the City’s
operating budget.

TABLE 14
Transit Capital Forecast
($000's)
                                                    2010    2011         2012        2013        2014
HSR Bus Replacement                                 9,276    9,554       9,841      10,136      10,440
ATS Vehicle Replacement                             2,114    2,177       2,242       2,310       2,379
Non Revenue Vehicle Replacement                       129          91      103             97          93
Ticket Office Leasehold Improvements                  150      -           -           -           -
Park'n'Ride Terminal & Security Upgrades            1,655      -           -           -
Bus Stop Landing Pads                                 145     145              73          73          73
AODA Initiative - Bus Stop Benches                     50          50          50          50          50
Transit Hybrid Bus Battery Replacement                 93     127          164         203         209
ATS Marketing & Satisfaction Survey                   200     200          -           -           -
ATS On-Vehicle Security Camera                        325      -           -           -           -
Automated Passenger Counting System                   195      -           -           -           -
Fare Cards - System Enhancement                       530      -           -           -           -
Total                                              14,862   12,344      12,473      12,869      13,244



Table 15 provides the actual Transit subsidies received in 2008 and 2009 and a
forecast of Transit subsidy revenues in 2010 through 2012

TABLE 15
Transit Subsidy Revenue Forecast
($000's)
                                                    2008    2009        2010        2011        2012
Ontario Transit Capital Grant                       7,523      -           -           -           -
Metrolinx                                          29,991      -           -           -           -
Provincial Gas Tax                                 11,209   11,081      11,042      10,981      10,920
Ontario Bus Replacement Program - HSR               2,344    2,500       2,802       3,079       3,126
Ontario Bus Replacement Program - ATS                 470     727         704         692         706
Total                                              51,537   14,308      14,548      14,752      14,752




                                            Page 23 of 46
City of Hamilton FCS09114                  2010 Tax-Supported Capital Budget
                                          2011- 2019 Tax-Supported Capital Forecast
Table 16 is a projection of Transit reserve balances. A significant portion of the
Provincial Gas Tax Reserve is used to fund operating expenses (approx. $4.8 million in
2008, $7.1 million in 2009 and $8.0 million forecast for 2010) The reserve projections
indicate the reserves are at a sustainable level to fund the forecasted operating and
capital requirements to at least 2013.

TABLE 16
Transit Reserves Forecast                            Actual   Forecast   Forecast   Forecast    Forecast
($000's)                                              2009     2010       2011       2012        2013
HSR Vehicle Replacement                               7,763    7,573       7,835     7,961       7,958
ATS Vehicle Replacement                               3,167    3,048       2,949     2,819       2,655
Provincial Gas Tax Reserve                           10,040   10,930     11,137     11,111      10,840
Federal Public Transit Funds (Fed. Gas Tax)           1,600      868         750       702         653
Ontario Transit Capital                               6,713    5,691       4,634     3,539       2,406
Rapid Transit (Metrolinx)                            13,265    1,227         -          -           -
Transit Capital Reserve                               2,512    1,403       1,109     1,007         900




6.0    GROWTH / ASSESSMENT CAPITAL:

As various municipalities surrounding Hamilton have demonstrated that the increase in
industrial / commercial assessment (these classes contribute more property tax revenue
than service cost) is directly proportional to the health of a City’s economic viability and
affords a City greater sustainability of social and community programs. Once the City
goes forward with its growth infrastructure plans, current policies must sustain the
“Places to Grow” growth patterns. The City is basing its growth planning on Provincial
forecasts which peg Hamilton’s population at 660,000 by 2031. To date, the City is
falling short of those projections. Tables 17 and 18 illustrate the shortfalls in residential
and non-residential growth and short-term City estimates going forward.

TABLE 17
Average Single Detached Unit Equivalent Construction Versus Provincial Forecast
                   2001-2008         2009            2010           2011                       2012-2031
Staff Budget/Act         1,800           1,000          1,250           1,500                        3,448
Places To Grow           2,600           2,300          2,300           3,427                        3,272



TABLE 18
Average Square Footage Non-Residential Construction versus Provincial Forecast
                   2001-2008        2009            2010           2011                        2012-2031
Staff Budget/Act     1,796,000     1,000,000       1,250,000       1,500,000                     2,112,500
Places To Grow       2,008,588     2,008,588       2,008,588       2,008,588                     2,008,588




                                              Page 24 of 46
City of Hamilton FCS09114                              2010 Tax-Supported Capital Budget
                                                      2011- 2019 Tax-Supported Capital Forecast
Table 19 summarizes the proposed Capital projects which will contribute towards
assessment growth. As the 2010 Tax Capital Budget and Table 19 illustrate, staff will
continue to prioritize and plan for growth.

TABLE 19
Assessment Growth Projects 2010 ($000's)
DC funded projects                                                               Gross      Net
ISF-2425 Morgan Firestone Arena Twinning                                         10,275       -
Macassa Lodge - Parking Lot Expansion                                               180       60
Human Services Planning Intiative (HSPI)                                            200           65
Community Planning Studies                                                          100       50
Downtown Cultural Heritage Inventory of Properties (Ph 1-Pilot Study-2009), (P      180           90
City Share of Servicing Costs under Subdivision Agreements-Annual Program         2,500       -
Rural and Urban Official Plan - Ontario Municipal Board Appeals                     450       -
Residential Intensification Strategy + Nodes and Corridors                          355      172
Lynden Branch Library                                                             1,690       -
ISF-1728 - Multi-Agency Training Complex                                         27,000       -
Trillium Seabreeze Neighbourhood Park                                               408       66
Courtcliffe Park                                                                    900      519
Native Burial Ground - Olmstead Site (DiCenzo Subdivision)                          100       10
Open Space Replacement Strategy-East Mtn Trail Loop                                 135       -
Conventional Transit - Park'n'Ride Terminal & Security Upgrades - Fencing &       1,655       -
Springbrook Ave Urbanization                                                      1,510       -
Dartnall - Rymal to Twenty                                                          500      100
Courtcliffe Park & Joe Sam's Park (Flamborough) - Turning Lanes                     400       40
Trinity Church Arterial Corridor (Between Rymal & Stone Church)                  11,650       -
Annual New Sidewalk Program                                                         420       20
Airport Employment Growth District - Phase 3 and 4 Class EA Studies                 400       60
Binbrook Rd - Royal Winter Drive to RR 56                                         1,200      350
Arvin Ave - McNeilly to Lewis                                                       630           30
Mid Block Arterial - Mountain Brow to Dundas                                      3,870      190
Trinity Church - Rymal to 500m Southerly (Hydro Corridor)                         1,140      460
Annual Street Lighting                                                            1,140       58
Annual Traffic Signal Modernization & Upgrades + Installation                       795       37
Sub-total DC funded                                                               69,783    2,377
Non-DC funded projects
Council Strategic Initiatives                                                     5,000     5,000
Randle Reef Rehabilitation Project                                                2,000     2,000
Economic Development Initiatives                                                  2,500     2,500
NGIBP - Twenty Road                                                               1,650       -
Trinity Road Link                                                                 4,000       -
Commercial Property Improvement Grant-Annual Program                                400      400
Implementation of Olde Stoney Creek Urban Design Plan                               400       -
Community Downtowns and Business Improvement Areas (B.I.A.s)                        250      250
2015 Pan American/Para Pan American Games Planning                                5,573       -
New Gateway Signage - Ancaster Industrial Business Park                             150      150
95 King Street East, Proposed Artists Live/Work Development - CityHousing H       3,490     1,406
Rapid Transit Studies                                                             4,870     1,870
Waterfront Development Corporation - Seed Funding                                 2,000     2,000
Sub-total non-DC funded                                                           32,283   15,576
Total Growth Projects                                                            102,066   17,953




                                                        Page 25 of 46
City of Hamilton FCS09114              2010 Tax-Supported Capital Budget
                                      2011- 2019 Tax-Supported Capital Forecast
Table 20 illustrates the amount of growth capital budgeted for all growth infrastructure.
The budgeted expenditures are separated into 2 categories. One for infrastructure that
services industrial development and one for non-industrial development, (commercial
and residential). The one development variable which hampers the City’s growth
prospects is the lack of shovel-ready, serviced industrial lands. In Table 20, there are
proposed investments in the amount of $14.5 million dedicated towards industrial park
servicing with $8.7 million of the funding coming from development charges. The
Province in October 2005 also committed $20 million towards the servicing of the
Glanbrook Industrial Park. When fully serviced, the total amount of new, serviced
industrial land will be approximately 1,200 acres (Glanbrook - 700 acres, Ancaster -
200, Flamborough - 100, Stoney Creek - 200).

The total amount of budgeted development charge revenue required for the 2010
growth tax-supported Capital budget is $41.3 million and for the rate capital budget is
approximately $146.4 million. Annual revenues for the whole Development Charge (DC)
program for 2010 should total approximately $40 million. To facilitate the growth that is
needed the City requires sizeable investment and must incur considerable debt. The
largest portion of this budget is in the rate-supported Capital projects. Of note is the
significant requirement from the waste-water program. This is in large part due to the
waste-water plant expansion. This means that a large part of the 2010 program will
have to be funded through debt and the debt charges repaid from future development
charge collections.

Of note, the City of Hamilton has a Development Charge Funding policy which requires
that staff limit the amount of exposure of the DC reserves. That is, growth projects will
only be included in the proposed capital budget if the sustainability of the reserves is
maintained (no negative balances). The impact of this policy is that some projects may
be delayed when compared to their timing in the DC Background Study and debt
financing may be required in order to maintain DC reserve integrity. Staff would also
ensure that any growth-related debt principle and interest will be met by future
Development Charge collections.




                                       Page 26 of 46
City of Hamilton FCS09114                               2010 Tax-Supported Capital Budget
                                                       2011- 2019 Tax-Supported Capital Forecast
TABLE 20
2010 CAPITAL BUDGET                                                 DC
GROWTH CAPITAL                                                    Funding
                                                                  ($000s)
Industrial
                                                                              -
rate         SWMP - A17 D'Amico Cimino Lands                                1,350
tax          Airport Employment Growth District - Phase 3 and                 500
tax          Arvin Ave - McNeilly to Lewis                                    600
tax          Trinity Road Link                                                -
tax          NGIBP - Twenty Road                                              -
rate         Airport Employment Growth District - Phase 3 and                 668
rate         SWMP A23 - Trustwood Industrial Park                             770
rate         SWMP - A16 D'Amico Cimino Lands                                  660
rate         SWMP SL11 - Arvin Ave e/o Lewis                                2,440
rate         SWMP B14 - Orlick Aeropark                                     1,710
             Total Industrial Projects                                      8,698

Non-industrial
rate     Water                                                             4,750
rate     Wastewater                                                       85,020
rate     Stormwater                                                       16,451
tax      Roads                                                            20,707
tax      Community Services                                                1,527
tax      Planning-Development                                              3,133
tax      Parks Development                                                 4,045
tax      Hamilton Emergency Services                                      10,400
tax      Transit                                                             360

             Total Non-industrial Projects                               146,393

             TOTAL TAX BUDGET                                             41,272

             TOTAL RATE BUDGET                                           113,819

             TOTAL ALL                                                   155,091




6.1          DEVELOPMENT CHARGE RESERVES – TAX SUPPORTED SERVICES:

As per Table 20, the total amount of development charge revenue required for 2010 Tax
Capital budget is $41.2 million and for the Rate Capital budget is $146.4 million.
Projected annual revenues for the 2010 Development Charge Tax-Supported growth
services is $21 million and for the rate-supported growth services is $19 million. On the
tax-supported growth services side, debt financing may be required for the following
significant growth Capital projects listed in Table 21.

TABLE 21
2010 CAPITAL BUDGET                                     Gross        DC     Grants/ Other External
DC Tax Projects Requiring Debt                           Cost      Funding Subsides   Revenues
                                                       ($000s)     ($000s)  ($000s)    ($000s)
Multi-Agency Training Complex                            27,000      10,400   16,600
Morgan Firestone Arena Twinning                          10,275       3,425    6,850
Roads and Park Development                                9,000       9,000      -
Total                                                    46,275      22,825   23,450           -

Following this financing strategy, the tax-supported DC services reserves would be
sustainable for the long-term (Refer Table 22).



                                                         Page 27 of 46
City of Hamilton FCS09114               2010 Tax-Supported Capital Budget
                                       2011- 2019 Tax-Supported Capital Forecast



TABLE 22
2010 DC Reserve Forecast               Opening                                Direct     Ending
                                       Balance Collections old debt new debt Funding     Balance
                                       ($000s)  ($000s)    ($000s)   ($000s) ($000s)     ($000s)


         Roads                            1,937     10,858   (3,646)   (250)      -        8,899
         Community Services                (142)     3,118                     (1,258)     1,718
         Planning-Development              (426)       177                     (3,424)    (3,673)
         Parks Development               (5,509)     5,076             (200)      -         (633)
         Hamilton Emergency Services     (1,798)     1,537    (417)    (538)              (1,216)
         Transit                          2,167        378     -        -       (362)      2,183

         Total                           (3,771)    21,144   (4,063)   (988)   (5,044)     7,278




7.0    RESERVES / RESERVE FUND FINANCING:

Prudent fiscal management of reserves is imperative. Reserves provide flexibility
against uncertainties, which inevitably arise in today’s changing municipal environment,
reducing the risk to taxpayers in the future. The City of Hamilton has reserves totalling
approximately $347 million (excluding the Hamilton Future Fund) projected as at
December 31, 2009. Table 23 illustrates the City’s reserve history for the period 2005 –
2008 and specific reserve projections which fund the tax capital program for the next 5
years.




                                         Page 28 of 46
City of Hamilton FCS09114                                                         2010 Tax-Supported Capital Budget
                                                                                 2011- 2019 Tax-Supported Capital Forecast
TABLE 23
THE CITY OF HAMILTON
RESERVE FORECAST 2005 - 2013 ( $ 000's ) (Dec.31)
                                                                        Actual Balances December 31                                          Projected Balances December 31
YEAR                                                       2005              2006             2007             2008          2009         2010         2011            2012           2013

TAX CAPITAL RESERVES

DEVELOPMENT CHARGES                                          12,403            18,348             9,333             36,480    25,976       31,612        22,581          33,880        35,464

EQUIPMENT REPLACEMENT                                          3,628             4,893            4,179              6,010     2,669        1,765         2,678               2,111     2,124

VEHICLE REPLACEMENT                                          14,897            14,378            12,074             21,076    15,185       17,410        19,414          21,841        14,134

CAPITAL RESERVES - TAX                                       29,929            25,571            29,586             79,277    45,031       17,569        19,277          23,613        28,073

HECFI                                                             960            1,022               825             1,035          589      618              691              363           736

GAS TAX RESERVES                                             11,371            14,806            15,048             18,734     9,291        9,117         9,301               9,311     9,137

PARKLAND RESERVES                                              3,706             5,030            5,942              8,187     4,750        5,318         5,347               5,376     5,407

TOTAL TAX CAPITAL RESERVES                                   76,894            84,048            76,987            170,799   103,491       83,409        79,289          96,495        95,075

OPERATING AND RATE CAPITAL RESERVES

RATE CAPITAL RESERVES                                        61,343            59,709            72,049             79,672    35,162       37,846        39,196          28,914        28,576

TAX STABILIZATION                                            12,207            12,509             9,808              9,398     7,315        7,268         7,064               7,311     7,567
TAX STABILIZATION - POLICE                                    2,278             1,786             1,475                882       403          417           432                 447       462

WORKING FUND RESERVES                                        11,917            13,626             8,642             18,031    18,538       18,578        20,102          21,930        23,745

EMPLOYEE BENEFIT / ANCILLARY                                 59,538            64,882            63,729             65,181    65,931       67,279        68,655          70,087        71,831

PROGRAM SPECIFIC RESERVES                                    57,009            97,640          115,386             155,187   111,124      104,589       100,875          99,678       101,591

OTHER                                                          6,699             7,187            7,689              6,027     4,708        6,905         7,146               7,397     7,653

TOTAL O & R RESERVES                                        210,991           257,339          278,778             334,378   243,181      242,882       243,470         235,764       241,425

TOTAL RESERVES BEFORE FUTURE FUND                           287,885           341,387          355,765             505,177   346,672      326,291       322,759         332,259       336,500

FUTURE FUND RESERVES

HAMILTON FUTURE FUND A                                       93,825            68,667            62,971             62,891    68,879       49,796        45,687          29,667        22,568
HAMILTON FUTURE FUND B                                       17,278            13,715            12,042             12,037    10,424        7,736         4,954           3,558         3,682

TOTAL HFF RESERVES                                          111,103            82,382            75,013             74,928    79,303       57,532        50,641          33,225        26,250

TOTAL ALL RESERVES                                          398,988           423,769          430,778             580,105   425,975      383,823       373,400         365,484       362,750

This 2009 reserve projection reflects updated reserve information since the printing of the 2008 Reserve Report.

Detailed Reserve and Development Charge Forecast to be presented in year-end annual reports.




An analysis of Table 23 highlights the following trends:

1. The tax capital reserves, which fund the City’s capital program, have remained
   relatively stable over the last 5 years (from $77 million to $103 million).

2. The total reserve and reserve funds position for the City of Hamilton has increased
   from $399 million in 2005 to a forecast $426 million for 2009.

Reserve Funds have been established either through legislation or by Council to be
used for specific future liabilities. The reserve amounts available to fund tax-supported
capital in future years will vary depending upon operating transfers, senior level
government funding and the financing implications of large, multi-year capital projects.
Currently, the following reserve funding (including DC’s) is incorporated into the
proposed capital financing plan:



                                                                                    Page 29 of 46
City of Hamilton FCS09114                        2010 Tax-Supported Capital Budget
                                                2011- 2019 Tax-Supported Capital Forecast
•     2009 = $76 million or 26 % of total capital funding sources,

Staff will continually review existing reserve and reserve fund balances and make
appropriate recommendations to Council during the annual capital budget process.

8.0      HAMILTON FUTURE FUNDS:

The funds received from Hamilton Utilities Corp. were initially segregated into two
reserve accounts:

         Hamilton Future Fund A                     $100,000,000
         Hamilton Future Fund B                     $ 37,430,705

For the purposes of this budget report, only Future Fund A will be examined. Council
and the HFF Board have approved an internal loan from Fund A to the City in the total
amount of $100 million whose disbursement is tied to annual planned waste
management and roads expenditures. Refer to Table 24 for Fund A’s 5-year projected
balances. Fund A was established as a permanent fund to be protected and invested for
five years; thus providing a permanent source of funding.

TABLE 24
HAMILTON FUTURE FUND A
($ 000's)                           Actual     Actual               Projected
                                   Pre 2008     2008     2009     2010     2011      2012       2013       2014

Initial Investment                 100,000
Revenues
    Investment Income @     4.0%    24,623      3,010     2,430    1,719    1,645     1,180        804       711
    Loan Repayment (P&I)             6,617      5,085     5,708    7,901    8,207     8,786      8,994      8,994

Expenditures
    Transfer to Operating           (12,205)   (1,640)      -        -        -          -          -         -
    Loans to Fund Capital           (56,064)   (6,535)   (2,150) (23,129) (3,392)     (6,412)    (2,318)
    Pan Am Games                                                  (5,573) (10,569)   (19,569)   (14,485)   (9,804)

Balance - End of Year               62,971     62,891    68,879   49,796   45,687    29,672     22,667     22,568



In 2010 it is expected approximately $28.7 million will be borrowed from Fund A to fund
capital. It is projected the fund balance will be $49.8 million in 2010, and then decrease
in 2011 and beyond as the commitment for Pan Am games funding is expended.




                                                  Page 30 of 46
City of Hamilton FCS09114                2010 Tax-Supported Capital Budget
                                        2011- 2019 Tax-Supported Capital Forecast


9.0    CONCLUSION:

City staff are recommending to Council an annual 1% total levy increase dedicated to
Capital for 2010 and beyond to address the following issues:

a) The City in its 10-year Strategic Tax-Supported Capital Plan has new major capital
   commitments in the form of Light Rail Transit, Pan Am games, Lister Block and other
   significant infrastructure investments, particularly in the Downtown core.
b) In order to achieve (a) and still maintain its existing asset inventory, the Capital levy
   must increase faster than the operating levy to address past Capital Levy under-
   funding.

The staff recommended 2010 Tax-Supported Capital Budget (Option 3 – 1% total tax
levy increase dedicated to the Capital Levy) achieves the following:

1) Deals with the City’s infrastructure deficit backlog, most significantly, the indoor
   recreation and Emergency Services assets.
2) New investment in strategic capital areas such as the Waterfront, Industrial Land
   Development and others.
2. The record level of investment in the amount of $294 million builds upon the
   employment stimulus programs being run concurrently by the Federal and
   Provincial governments and is imperative during these recessionary times.

Although the 2010 staff recommended Tax-Supported Capital Budget achieves many
strategic objectives, Council must keep its eye on long-term trends such as the
following:

3) The City of Hamilton’s 2010 Capital budget of $294 million relies heavily on
   infrastructure subsidies ($96.5 million) from the senior levels of government. This
   was also the case with the City’s 2009 Capital budget. Without these subsidies, the
   City would in essence be only able to deal with the most critical of asset
   deterioration emergencies.
4) As this report demonstrates, the City’s capital capacity reduces dramatically starting
   in 2011. In the future, the Provincial and the Federal Government will not have the
   fiscal resources to help municipalities deal with our infrastructure deficit. This is a
   common theme amongst all Ontario municipalities.

With the emergence of current and for the foreseeable future, large budget deficits, the
ability of senior levels of government to continue to significantly assist municipalities will
be over. In response, staff recommend that Council commit to a long-term 1% annual
Total Levy Increase dedicated to the Capital Levy to provide flexibility with regards to
providing for current capital commitments and future capital requirements. This strategy
would allow for $330 million more in capital projects over a 10-year period versus a 0%
increase in the capital levy.




                                         Page 31 of 46
                                                                                                    Appendix A to Report FCS09114



                                                             CITY OF HAMILTON
                                                       OPTION 1 - 0.3% LEVY INCREASE
                                                 2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                    (000's)
                                                                                              2010        2010        2010        2010
                                                                                          Gross Budget Net Budget Gross Budget Net Budget
                                                                                            Included    Included  Not Included Not Included
                                                                                               $            $           $           $

COUNCIL STRATEGIC INITIATIVES

Council Strategic Projects

Projects Included in Financing Plan

9900808800     Council Strategic Initiatives to be assigned                                        5,000        5,000
2110953900     Randle Reef Rehabilitation Project                                                  2,000        2,000
Total Council Strategic Initiatives                                                                7,000        7,000

COMMUNITY SERVICES

Community Services - Other Divisions

Projects Included in Financing Plan

6500741701     CSD Accommodations Annual Program                                                    250          250
6500851803     MSDs Prevention & Ergonomics Improvement Strategy                                    268          268
6500755703     Human Services Planning Initiative (HSPI)                                            200           65
Sub-Total Community Services - Other Divisions                                                      718          583

Culture

Projects Included in Financing Plan

7101058703     Hamilton Culture and Protocol Centre at Auchmar Estate                               500          500
7100758708     Collections Registration-Preservation Project                                        438          200
7100958554     Culture Policy & Planning - Our Community Our Culture                                320          220
7101058712     Veevers House - Health & Safety Repairs                                              160          160
7100858706     Hammill House Renovations                                                            110          110
7101058709     Hamilton Museum of Steam & Technology - 1913 Pumphouse & Paving                      110          110
7101058710     Monuments and Cenotaphs Conservation                                                 100          100
7101058704     Balfour Estates - Chedoke House                                                       68           68
7101058707     Gage Park Fountain Restoration Study and Specifications                               55           55
7101058702     War of 1812 Bicentennial Commemoration                                                50           50
7100957100     Point of Sale System - Museums                                                        20           20
                                                                                                   1,931        1,593

Projects Not Included

7101058708     Gardener's Cottage - DUNDURN NATIONAL HISTORIC SITE                                                            61          61
7101058711     St. Mark's Church                                                                                             600         600
7101058713     Aubrey-Zimmerman House - Stabilization                                                                         65          65
7101058714     Accessibility for Ontarians with Disabilities Act Regulations Compliance                                      300         300
                                                                                                                            1,026       1,026


Sub-Total Culture                                                                                  1,931        1,593       1,026       1,026



                                                                        Page 32 of 46
                                                                                                Appendix A to Report FCS09114



                                                            CITY OF HAMILTON
                                                      OPTION 1 - 0.3% LEVY INCREASE
                                                2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                   (000's)
                                                                                          2010        2010        2010        2010
                                                                                      Gross Budget Net Budget Gross Budget Net Budget
                                                                                        Included    Included  Not Included Not Included
                                                                                           $            $           $           $


Housing

Projects Included in Financing Plan

6181041001    95 King Street East, Proposed Artists Live/Work Development                      3,490        1,406
                                                                                               3,490        1,406

Projects Not Included

6180941901    Emergency Capital - 801 Upper Gage Renovation                                                             3,000       3,000
                                                                                                                        3,000       3,000


Sub-Total Housing                                                                              3,490        1,406       3,000       3,000

Lodges

Projects Included in Financing Plan

6301051002    Macassa & Wentworth Lodges-Term Care Homes Wireless Installation                  200          200    R
6301041006    Macassa Lodge - Parking Lot Expansion                                             180           60    R
6300941909    Wentworth Lodge - 1989 Wing: Upgrades and Replacements                            125          125    R
6300951907    Macassa Lodge Dietary Hot Carts Replacement                                        75           75    R
6301051004    Macassa Lodge-Therapeutic Surfaces                                                 40           40    R
Sub-Total Lodges                                                                                620          500

Public Art

Projects Included in Financing Plan

7101058705    Public Art                                                                        250          250    B
Sub-Total Public Art                                                                            250          250

Recreation

Projects Included in Financing Plan

7101054527    Parking Lot Rehabilitation-Annual Program                                         300          300
7101054702    Facility Capital Maintenance - Annual Project                                     500          500
7101054536    Arena Retrofits-Annual Program                                                    600          600
7101041706    Recreation Centre Retrofits - Annual Project                                      600          600
7100954900    ISF 2344 - Westmount Recreation Centre                                        21,000          7,000
7100954901    ISF 2296 -Lower Stoney Creek Recreation Centre                                13,000          4,334
7100954902    ISF 2380 -Coronation Arena Development                                           3,000        1,000
7100954630    ISF 2400 -Sir Allan MacNab - Renewal Project                                     2,680         680
7100958914    RINc 19-Inch Park Pool Rehabilitation                                            2,000         667
7100958910    RINc 9 - Chedoke Twin Pad Rehabilitation - Green Rink                            1,650         550
7100958911    RINc 13-Carlisle Arena Retrofit                                                  1,650         550



                                                                      Page 33 of 46
                                                                                                      Appendix A to Report FCS09114



                                                             CITY OF HAMILTON
                                                       OPTION 1 - 0.3% LEVY INCREASE
                                                 2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                    (000's)
                                                                                                2010        2010        2010        2010
                                                                                            Gross Budget Net Budget Gross Budget Net Budget
                                                                                              Included    Included  Not Included Not Included
                                                                                                 $            $           $           $

Recreation con't

Projects Included in Financing Plan

7100958912    RINc 16-Inch Park Arena Rehabilitation                                                 1,650         550
7100958913    RINc 18-Rosedale Arena Rehabilitation                                                  1,650         550
7100954903    ISF 2411 -Sir Wilfrid Laurier Rehabilitation                                           1,500         500
7100958711    RINc 3 - Turner Park-Lighting and Washrooms Additions                                  1,630         230
7100854809    Chedoke Water Line Replacement                                                          400            0
7101054706    Golf Course Improvements-Annual Project                                                  80            0
7101041707    ISF-2425 Morgan Firestone Arena Twinning                                            10,275             0
                                                                                                  64,165      18,611

Projects Not Included

7100754711    Ivor Wynne Stadium Rehabilitation                                                                                500         500
7101055702    AODA Legislative Requirement                                                                                    1,000       1,000
7101058500    Tennis Court Resurfacing                                                                                         260         200
3541055100    Annual Facilities Audits                                                                                          80          80
7101041501    Winona Seniors Centre Expansion                                                                                 1,200       1,200
7100958709    Rosedale Outdoor Pool                                                                                           1,775       1,775
7100941704    Beemer Park Washroom/Storage Facility                                                                            300         300
7101041700    Green Acres Outdoor Pool                                                                                         225         225
                                                                                                                              5,340       5,280


Sub-Total Recreation                                                                              64,165      18,611          5,340       5,280


Total Community Services                                                                          71,174      22,943          9,366       9,306

DOWNTOWN/WATERFRONT

Downtown & Community Renewal - Block Funded

Projects Included in Financing Plan


4241003015    John/Rebecca Urban Park Land Purchase                                                  1,100        1,100
6181041001    Contribution to 95 King Street East, Proposed Artists Live/Work Development             500          500
7100941703    Hamilton Farmers' Market - Relocation and Moving Cost                                   250          250
7101058700    Public Art - James and Hunter                                                           200          200
8201055100    Gore Pedestrianization Pilot Project                                                    110          110
7101058701    Public Art - Main and Queen                                                              50           50
7100554540    Hamilton Farmers' Market - Improvements                                                 290          290
8201003803    Annual Hamilton Heritage Property Grant Program                                         100          100
                                                                                                     2,600        2,600




                                                                      Page 34 of 46
                                                                                                             Appendix A to Report FCS09114



                                                           CITY OF HAMILTON
                                                     OPTION 1 - 0.3% LEVY INCREASE
                                               2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                  (000's)
                                                                                                       2010        2010        2010        2010
                                                                                                   Gross Budget Net Budget Gross Budget Net Budget
                                                                                                     Included    Included  Not Included Not Included
                                                                                                        $            $           $           $

Downtown & Community Renewal - Improvement Projects

Projects Included in Financing Plan

8201003602    Implementation of Olde Stoney Creek Urban Design Plan-Annual Program                           400            0
8201003610    Commercial Property Improvement Grant-Annual Program                                           400          400
8201003611    Community Downtowns and Business Improvement Areas (B.I.A.s)-Annual Program                    250          250
                                                                                                            1,050         650
Waterfront

Projects Included in Financing Plan

4240906914    Waterfront- Pier 8 Rink & Restaurant                                                           808            0
                                                                                                             808            0


Total Downtown/Waterfront                                                                                   4,458        3,250

PLANNING & ECONOMIC DEVELOPMENT

Building Services

Projects Included in Financing Plan

8061051100    City Owned Inspection Vehicles-Annual Program                                                  105            0
Sub-Total Building Services                                                                                  105            0

Community Planning and Design

Projects Included in Financing Plan

8120959901    Downtown Cultural Heritage Inventory of Properties (Ph 1-Pilot Study-2009), (Ph 2-             180           90
              2010), (Ph 3-2011)
8300808100    Commercial Heritage Improvement and Restoration Program (CHIRP)                                180          180
8120955900    Community Planning Studies                                                                     100           50
                                                                                                             460          320

Projects Not Included

8121055101    Walk Ability Study and Design Manual                                                                                   150         150
8121059100    Natural Areas Acquisition Fund Strategy - Report PED09007(a) recommends                                                150         150
              an annual submmission in the Capital Budget of $100,000 for years 2011 to
              2013 and $300,000 annually afterwards.
8141055100    Aggregate Applications                                                                                                 100         100
8141055101    Complete Application - Supporting Studies Terms of Reference                                                           80           80
8141055102    Street Renaming/Duplicate Street Names                                                                                 80           80
                                                                                                                                     560         560


Sub-Total Community Planning and Design                                                                      460          320        560         560



                                                                      Page 35 of 46
                                                                                                    Appendix A to Report FCS09114



                                                             CITY OF HAMILTON
                                                       OPTION 1 - 0.3% LEVY INCREASE
                                                 2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                    (000's)
                                                                                              2010        2010        2010        2010
                                                                                          Gross Budget Net Budget Gross Budget Net Budget
                                                                                            Included    Included  Not Included Not Included
                                                                                               $            $           $           $


Development Engineering

Projects Included in Financing Plan

4141046100    City Share of Servicing Costs under Subdivision Agreements-Annual Program            2,500         0
                                                                                                   2,500         0

Economic Development & Real Estate

Projects Included in Financing Plan

3621054100    2015 Pan American/Para Pan American Games Planning                                   5,573         0
3621051101    New Gateway Signage - Ancaster Industrial Business Park                               150         150
Sub-Total Economic Development & Real Estate                                                       5,723        150

Industrial Land Development

Projects Included in Financing Plan

3620507101M Trinity Road Link                                                                      4,000         0
3620707005    NGIBP - Twenty Road                                                                  1,650         0
Sub-Total Industrial Land Development                                                              5,650         0

Municipal Parking System

Projects Included in Financing Plan

4901045103    Paving of Municipal Carparks-Annual Program                                           150          0
4901051105    Pay on Foot Equipment Replacement Annual Program                                       75          0
4901045100    Repairs to York Boulevard Parkade                                                      15          0
Sub-Total Municipal Parking System                                                                  240          0

Strategic Services

Projects Included in Financing Plan

8140855800    Rural and Urban Official Plan - Ontario Municipal Board Appeals                       450          0
8141055100    Nodes and Corridors Secondary Plans                                                   250         162
8141055101    Residential Intensification Strategy                                                  105         10
Sub-Total Strategic Services                                                                        805         172


Total Planning & Economic Development                                                           15,483          642         560         560




                                                                      Page 36 of 46
                                                                                                    Appendix A to Report FCS09114



                                                              CITY OF HAMILTON
                                                        OPTION 1 - 0.3% LEVY INCREASE
                                                  2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                     (000's)
                                                                                              2010        2010        2010        2010
                                                                                          Gross Budget Net Budget Gross Budget Net Budget
                                                                                            Included    Included  Not Included Not Included
                                                                                               $            $           $           $

PUBLIC HEALTH

Public Health

Projects Included in Financing Plan

6770841801      Public Health Services - Accommodations                                             250          250
Total Public Health                                                                                 250          250

OUTSIDE BOARDS & AGENCIES

H.E.C.F.I.

Projects Included in Financing Plan

3720841802      Copps Coliseum - Permanent Seating Refurbishment                                    500            0
3721041100      Hamilton Convention Centre - Carpet Replacement                                     350            0
3721041800      HCC/CC - Various Replacements and Renovations - Annual Program                      250            0
3721041803      Hamilton Place Replacements and Renovations - Annual Program                        250            0
Sub-Total H.E.C.F.I.                                                                               1,350           0

Hamilton Beach Rescue (HBRU)
Projects Included in Financing Plan

2861051700      HBRU-Renovations & Equipment Purchases-Annual Program                                42            0
Sub-Total Hamilton Beach Rescue (HBRU)                                                               42            0

Hamilton Public Library

Projects Included in Financing Plan

7500941900      Lynden Branch Library                                                              1,690           0
7500641100      Central Library - Improvements                                                      250          250
Sub-Total Hamilton Public Library                                                                  1,940         250

Hamilton Region Conservation Authority

Projects Included in Financing Plan

3801056904      Hamilton Conservation Authority Critical and Safety Projects-Annual                1,073        1,073
3801053900      Confederation Park & Wild Waterworks Capital Projects-Annual                        718          718
3801058902      Westfield Heritage Village - Critical and/or Safety Projects-Annual                 214          214
Sub-Total Hamilton Region Conservation Authority                                                   2,005        2,005


Total Outside Boards & Agencies                                                                    5,337        2,255




                                                                          Page 37 of 46
                                                                                                Appendix A to Report FCS09114



                                                            CITY OF HAMILTON
                                                      OPTION 1 - 0.3% LEVY INCREASE
                                                2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                   (000's)
                                                                                          2010        2010        2010        2010
                                                                                      Gross Budget Net Budget Gross Budget Net Budget
                                                                                        Included    Included  Not Included Not Included
                                                                                           $            $           $           $

CORPORATE SERVICES

City Manager

Projects Included in Financing Plan

 2051055001 Service Delivery Model                                                              185          185
Sub-Total City Manager                                                                          185          185


Finance

Projects Included in Financing Plan

2050757700     Tangible Capital Asset Accounting Project                                        100           80
2050957900     Operating Budget System-Clarity Visualizer Dashboard Pilot                       120            0
Sub-Total Finance                                                                               220           80

Human Resources

Projects Included in Financing Plan

2051057100     E-Performance and Succession Planning                                            260          260
Sub-Total Human Resources                                                                       260          260

Information Technology Services

Projects Included in Financing Plan

3500941906     IS Construct a Disaster Recovery Facility                                       1,800         880
3501057001     Microsoft Licensing                                                             1,700           0
                                                                                               3,500         880
Projects Not Included

3501051903     IS Datacentre Upgrades                                                                                    250         250
3501057900     IS System Management                                                                                      250         250
3501057902     IS Infrastructure                                                                                         250         250
3501057904     IS Security Improvements                                                                                  250         250
                                                                                                                        1,000       1,000


Sub-Total Information Technology Services                                                      3,500         880        1,000       1,000

Total Corporate Services                                                                       4,165        1,405       1,000       1,000




                                                                      Page 38 of 46
                                                                                                 Appendix A to Report FCS09114



                                                              CITY OF HAMILTON
                                                        OPTION 1 - 0.3% LEVY INCREASE
                                                  2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                     (000's)
                                                                                           2010        2010        2010        2010
                                                                                       Gross Budget Net Budget Gross Budget Net Budget
                                                                                         Included    Included  Not Included Not Included
                                                                                            $            $           $           $

EMERGENCY SERVICES

Corporate Trunk Radio System

Projects Included in Financing Plan

7800951900      Corporate Trunk Radio Upgrades                                               12,125          7,639
Sub-Total Corporate Trunk Radio System                                                       12,125          7,639

EMS (Emergency Medical Services)

Projects Included in Financing Plan


7641051100      Annual EMS Vehicle Replacement                                                   409            0
7641051101      Annual EMS Equipment Replacement                                                  17            0
Sub-Total EMS (Emergency Medical Services)                                                       426            0

Fire Services

Projects Included in Financing Plan

7400941910      ISF-1728 - Multi-Agency Training Complex                                     27,000             0
7401051601      Annual Fire Vehicle Replacement                                                  675            0
7401045104      Paving & Drainage at Fire Station 4 - 729 Upper Sherman                          250          250
7401051600      Annual Fire Equipment Replacement                                                128            0
                                                                                             28,053           250


Total Hamilton Emergency Services                                                            40,604          7,889

PUBLIC WORKS TAX FUNDED

Fleet & Facilities: Corporate Facilities

Projects Included in Financing Plan

3541041729      Copps Coliseum Lifecycle Annual Program                                         1,188        1,188
3541041012      Facility Upgrade to Old Courthouse - 50 Main                                     268            0
3540941730      Hamilton Place Lifecycle Replacement (HVAC/Mechanical/Electrical)                760          760
3540941734      Convention Centre Life Cycle Program                                             700          700
3541041532      Annual Facility Capital Maintenance                                              600          600
3541057002      Avantis Software Up-grade                                                        330          165
3541041015      330 Wentworth: Mechanical Upgrades to garage area                                168          168
3541041008      330 Wentworth Reception Renovations & Security Upgrades                          150          150
3540941910      Stoney Creek City Hall-RCMP Lease Capital Replacement                            125            0
3541049005      Heating & Ventilating Upgrades at Bernie Court Yard                               97           97
3540741645      MTC Roof & HVAC (Ph 2)                                                            87           87
3541041014      Hamilton Public Library-Environmental Control Unit (ECU) Replacement              85           85


                                                                      Page 39 of 46
                                                                                                      Appendix A to Report FCS09114



                                                             CITY OF HAMILTON
                                                       OPTION 1 - 0.3% LEVY INCREASE
                                                 2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                    (000's)
                                                                                                2010        2010        2010        2010
                                                                                            Gross Budget Net Budget Gross Budget Net Budget
                                                                                              Included    Included  Not Included Not Included
                                                                                                 $            $           $           $

Fleet & Facilities: Corporate Facilities con't

Projects Included in Financing Plan

3540441442     Hamilton City Hall Renovations                                                     15,400      15,400
3540941736     Chiller Replacement Program                                                           1,300        1,300
3541041412     Annual Roof Management                                                                 700          700
                                                                                                  21,958      21,400

Projects Not Included

3541041002     Lighting Redesign - Libraries                                                                                   375         375
3541041003     Lighting & Door Interlock Implementation to all Fire halls                                                      645         645
3541041004     Hamilton Convention Centre Lighting Retrofit                                                                    225         225
3541041005     Structural Repairs - 1301 Upper Ottawa                                                                          160         160
3541041010     Facility Upgrades to Hamilton Public Libraries                                                                 1,699       1,699
3541041409     Annual Facilities Code & Legislative Compliance                                                                 380         380
3541049001     Installation of Sewer Connection-Chedoke Yard                                                                   100         100
3541049002     Sewer upgrade and Underground tank removal for 125 Barton                                                       150         150
3541055100     Annual Facilities Audits                                                                                         80          80
                                                                                                                              3,814       3,814


Sub-Total Fleet & Facilities: Corporate Facilities                                                21,958      21,400          3,814       3,814

Fleet & Facilities: Fleet

Projects Included in Financing Plan

4941051100     Annual Fleet-Vehicle & Equipment Replacement                                          5,450           0
                                                                                                     5,450           0

Projects Not Included

4941051001     Additional Natural Gas Compressor for HSR Bus Fuelling                                                          725         725
                                                                                                                               725         725


Sub-Total Fleet & Facilities: Fleet                                                                  5,450           0         725         725

Forestry & Horticulture

Projects Included in Financing Plan

4451053444     Annual Street Tree Planting Program                                                   1,500        1,500
4451049001     Gage Park Greenhouse Facilities Rehab                                                  540          540
4451049528     Street Tree Grid Trimming Enhancement - Vehicle Acquisition                            340          340
4451053601     Annual Parks Tree Planting Program                                                     150          150
4451057910     Hansen Unit - Funding Source - Consulting Requirement                                   50           50
4401055002     Rural Forest Canopy Cover & Invasive Plant Species Analysis                            135          135
                                                                                                     2,715        2,715


                                                                            Page 40 of 46
                                                                                                 Appendix A to Report FCS09114



                                                           CITY OF HAMILTON
                                                     OPTION 1 - 0.3% LEVY INCREASE
                                               2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                  (000's)
                                                                                           2010        2010        2010        2010
                                                                                       Gross Budget Net Budget Gross Budget Net Budget
                                                                                         Included    Included  Not Included Not Included
                                                                                            $            $           $           $

Forestry & Horticulture con't

Projects Not Included

4451041920    Forestry Yard Accommodations - Permanent                                                                    850         850
4451049002    Dundas Community Gardens - Fencing                                                                           25          25
4451049003    Mohawk Rd @ Rice Floral Island Conversion                                                                    50          50
4451049100    Forestry Operations Centre Facility - Temporary Accommodations                                              200         200
4451051001    Horticulture Vehicles                                                                                        80          80
4451051200    Annual Floral Traffic Island Irrigation System Replacements                                                  75          75
                                                                                                                         1,280       1,280


Sub-Total Forestry & Horticulture                                                               2,715        2,715       1,280       1,280

O & M - Parks & Cemeteries
Projects Included in Financing Plan

4401056006    Rail Trail Slope Stabilization                                                     100           73    B
4401049610    Annual Park Bleacher Replacement                                                    50           50    B
4401049612    Annual Cemetery ID Signs                                                            50           50    B
4401057910    Hansen Unit - Funding Source - Consulting Requirement                               50           50    B
4401049008    Annual Extreme Park Makeover                                                        20           20    B
4401052600    Annual Playground Lifecycle Replacement Program                                    200          200    B
4401049510    Annual Spraypad Infrastructure Rehabilitation                                       50           26    B
4401052100    Annual CSA Safety Material Replacement                                             100          100    B
4401049101    Annual Park Pathway Resurfacing                                                    286          286    B
4401049107    Annual Park Fencing                                                                100          100    B
4400853100    Cemeteries Records Transfer - Phase II of II (HMIS Transition Project)              45           45    B
4401049103    Annual Bocce Court Rehab                                                            35           35    B
4401049104    Annual Park Sports/Security Lighting Upgrades                                       25           25    B
4401011601    Annual Cemetery Road Rehabilitation                                                 65           65    B
4401049607    Annual Outdoor Ice Rinks                                                            50           50    B
4401051411    Annual Equipment Upgrades                                                           25           25    B
                                                                                                1,251        1,200
Projects Not Included

4401018002    Annual Pedestrian Bridge Replacement and Repairs                                                             75          75
4401049002    Annual Marina Pier and Dock Repair/Replacement                                                               50          50
4401049004    Hamilton Waterfront Trail-Shoreline & Edge of pathway restoration                                           250         250
4401049006    Dundas Driving Park & Centennial Park - Flagpole Replacement                                                100         100
4401049007    Whitedeer Park - Catch Basin installation                                                                    50          50
4401049100    Annual Stair Replacement and Repairs                                                                        100         100
4401049725    Rosedale Bowl - Entrance Ditching and Culvert Replacement Project                                           121         121
4401053101    Cemeteries Pre Need Sales and Marketing Initiative                                                           75          75
4401055001    Wharf Wall Structural Condition Assessment                                                                   75          75
                                                                                                                          896         896

Sub-Total O & M - Parks & Cemeteries                                                            1,251        1,200        896         896


                                                                      Page 41 of 46
                                                                                              Appendix A to Report FCS09114



                                                           CITY OF HAMILTON
                                                     OPTION 1 - 0.3% LEVY INCREASE
                                               2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                  (000's)
                                                                                        2010        2010        2010        2010
                                                                                    Gross Budget Net Budget Gross Budget Net Budget
                                                                                      Included    Included  Not Included Not Included
                                                                                         $            $           $           $


Open Space Development

Projects Included in Financing Plan

 4400656619 Dundas Driving Park                                                                75           75
4400656638   Courtcliffe Park                                                                 900          519
4400756103   Heritage Green Community Sports Park Phase II                                    555          555
4400756200   Chedoke Waterfall Development                                                     60           60
 4400756755 Joe Sam's Leisure Park Phase 2 Development                                         60           60
4400856008   Crown Point East Property Acquisition                                            400            0
4400856144   Cherry Beach Land Acquisition for Park Development                              1,050         200
4400856520   Gage Park Redevelopment                                                          260          185
4400856600   Native Burial Ground - Olmstead Site (DiCenzo Subdivision)                       100           10
4400956653   Battlefield Park Redevelopment                                                  1,480        1,480
4400956800   Beach Park Development Program                                                   650            0
4400956919   William McCulloch Park                                                           350            0
4401055600   Annual Parks Environmental Testing and Reporting                                  50           50
4401056002   The Gore Master Plan                                                             200            0
4401056005   Millen Road Parkette (Proposed)                                                   85            0
 4401056010 Burkholder Park                                                                    50           50
4401056020   Village Green Park                                                                65           65
4401056060   Open Space Replacement Strategy-East Mtn Trail Loop                              135            0
 4401056122 Broughton Park Pathway & Drainage                                                 100            0
4401056127   Churchill Park - Soccer field and Master Plan                                    470          390
4401056521   Trillium Seabreeze Neighbourhood Park                                            408           66
Total Open Space Development                                                                 7,503        3,765


Roads

Projects Included in Financing Plan

4031055057   Airport Employment Growth District - Phase 3 and 4 Class EA Studies              400           60
4041017124   Annual Bicycle Route Improvements Program                                       1,620         300
4031018001   Annual Bridge & Culvert Program                                                 1,000        1,000
4031014405   Annual Contaminated Soil & Rock Disposal                                         250          250
4031010003   Annual Engineering, Utilities & Functional Design                                250          250
4031011225   Annual Geotechnical Investigation                                                200          200
4041017384   Annual Guide Rail Replacement Program                                            400          400
4031010005   Annual Major Road Maintenance Program                                            800          800
4031010006   Annual Minor Construction                                                        300          300
4031011222   Annual New Sidewalk Program                                                      420           20
4041014008   Annual New Traffic Signal Installation Program                                   185           10
4031017677   Annual Preventative Maintenance                                                 2,000        2,000
4031049555   Annual QA-QC Service Contract                                                    150          150



                                                                    Page 42 of 46
                                                                                               Appendix A to Report FCS09114



                                                           CITY OF HAMILTON
                                                     OPTION 1 - 0.3% LEVY INCREASE
                                               2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                  (000's)
                                                                                         2010        2010        2010        2010
                                                                                     Gross Budget Net Budget Gross Budget Net Budget
                                                                                       Included    Included  Not Included Not Included
                                                                                          $            $           $           $

Roads con't

Projects Included in Financing Plan

4031011223    Annual Semi Barrier Rehabilitation Program                                       200          200
4031011224    Annual Sidewalk Replacement Program                                              600          600
4041010016    Annual Street Lighting                                                          1,140          58
4041015019    Annual Traffic Controller Replacement Program (pre-approved)                     750          750
4041014010    Annual Traffic Signal Modernization & Upgrades                                   610           27
4041020016    Annual Traffic Signal System Upgrade                                            1,000        1,000
4031041762    Annual Yard Facility Maintenance and Improvement Program                         100          100
4031080053    Arvin Ave - McNeilly to Lewis                                                    630           30
4031011015    Barton - Fruitland to Jones                                                      650          650
4031080010    Binbrook Rd - Royal Winter Drive to RR 56                                       1,200         350
4031011015    Burlington - Birch to e/o Ottawa (Dofasco Gate 10)                              2,500        2,500
4030980911    Courtcliffe Park & Joe Sam's Park (Flamborough) - Turning Lanes                  400           40
4030880855    Dartnall - Rymal to Twenty                                                       500          100
4030720250    Dofasco Ingot Truck Route                                                       2,500        1,240
4031019101    East 43rd - Queensdale to Concession (pre-approved)                              980          620
4030918924    Jolley Cut Rehabilitation                                                       1,500        1,500
4031019101    King William / Hughson / Rebecca                                                1,800           0
4031019101    Lake - Queenston to King (pre-approved)                                         2,100        1,180
4031011015    Lewis - Barton to South Service (pre-approved)                                   680          390
4031011045    Lincoln Alexander Parkway                                                       2,500        2,500
4031011015    Longwood N - Franklin to Princess Point entrance (Macklin)                       750          480
4031019101    Margaret - Hwy 8 to Barton/Federal                                              1,870        1,040
4031080095    Mid Block Arterial - Mountain Brow to Dundas                                    3,870         190
4031019101    Mud and Paramount Intersection                                                   500          500
4041010044    Old Guelph Rd Slope Stabilization                                                800          800
4031019101    Queensdale - Upper Gage to Upper Ottawa (pre-approved)                          2,000        1,220
5300855100    Rapid Transit Studies                                                           4,870        1,870
4030655647    Specific Area Planning Act/Class EA Integration & Coordination                   100          100
4030680680    Springbrook Ave Urbanization                                                    1,510           0
4031011015    Stone Church - Omni to Garth (pre-approved)                                     1,000        1,000
4030720710    Traffic Signal Electrical Systems Improvement                                    400          400
4031055015    Transportation Master Plan Implementation                                        150          150
4031080192    Trinity Church - Rymal to 500m Southerly (Hydro Corridor)                       1,140         460
4030980986    Trinity Church Arterial Corridor (Between Rymal & Stone Church)              11,650             0
4031011015    Wilson - James to Victoria (pre-approved)                                       1,900        1,900
4030919101    Woodward - Melvin to Brampton (pre-approved)                                    3,400        2,100
4031003700    York/Wilson - Caroline to James (pre-approved)                                  3,050        2,450
Sub-Total Roads                                                                            69,275      34,235




                                                                     Page 43 of 46
                                                                                                             Appendix A to Report FCS09114



                                                              CITY OF HAMILTON
                                                        OPTION 1 - 0.3% LEVY INCREASE
                                                  2010 SUBMITTED PROJECTS BY DEPARTMENT
                                                                     (000's)
                                                                                                       2010        2010        2010        2010
                                                                                                   Gross Budget Net Budget Gross Budget Net Budget
                                                                                                     Included    Included  Not Included Not Included
                                                                                                        $            $           $           $

Roads con't

Projects Not Included

4031011015     Greenhill - Mount Albion to Summercrest                                                                               1,300       1,300
4031011015     Mud - Paramount to Up Centennial Parkway                                                                              2,000       2,000
                                                                                                                                     3,300       3,300

Sub-Total Roads                                                                                          69,275       34,235         3,300       3,300

Transit Services

Projects Included in Financing Plan

5301083100     Annual HSR Bus Replacement                                                                   9,276           0
5311082100     Annual ATS - Vehicle Replacement                                                             2,114           0
5300985904     Conventional Transit - Park'n'Ride Terminal & Security Upgrades - Fencing & Guard sha        1,655           0
5300583504     Fare Cards-System Enhancement                                                                 530            0
5311082001     ATS On-vehicle Security Cameras                                                               325            0
5311055001     ATS Re-branding and Transit Marketing & Customer Satisfaction Survey                          200            0
5301083002     Transit Automated Passenger Counting System                                                   195            0
5301085001     Ticket Office (GO) Leasehold Improvements-36 Hunter St. E.                                    150            0
5301085901     Annual - Conventional Transit - Bus Stop Landing Pads                                         145            0
5301083503     Annual Non-revenue Vehicle Replace                                                            129            0
5301083001     Transit Hybrid Bus Battery Replacement                                                         93            0
5301085002     AODA Initiative - To have a bench available at all bus stops                                   50            0
Total Transit Services                                                                                   14,862             0

Waste Management

Projects Included in Financing Plan

5121090100     CCF Rolling Stock Replacement                                                                 936          386
5121090200     Annual Diversion Container Replacement                                                        763          747
5120894100     Collection Operations Relocation                                                              700          700
5121095525     Annual SWMMP - Planning & Approvals                                                           450          450
5121092000     Annual Closed Landfill Maintenance & Capital Improvements                                     315          315
5121093000     Annual Maintenance & Capital Improvements to the Resource Recovery Centre (RRC)               300          100
5120867101     Relocation of Hall Road Pumphouse Stn-Glanbrook                                               250          250
5121094000     Annual Transfer Station/CRC Maintenance & Capital Improvements                                168          168
5121091000     Annual Glanbrook Landfill Capital Improvements                                                126          126
5120994912     Waste Management Facility Software Upgrade                                                    100          100
5121055137     Annual-Waste Management R & D                                                                  50           50
Sub-Total Waste Management                                                                                  4,158        3,392

Total Public Works Tax                                                                                  127,172       66,707      10,015      10,015

Total All Projects                                                                                      275,643      112,341      20,941      20,881




                                                                        Page 44 of 46
                                                                                Appendix A to Report FCS09114

                                            CITY OF HAMILTON
                                       OPTION 2 - 0.5% LEVY INCREASE
                                          ADDITIONAL PROJECTS
                                                    (000's)
                                                                                        2010            2010
                                                                                    Gross Budget      Net Budget
                                                                                         $                $

Open Space Development

  4400656512   Jackson Heights Park - Phase 1, Park Development.                               200              200
  4400756641   Winona Park Redevelopment Phase 2                                               280              280
  4401056090   Johnson Tew Park                                                                115              115
  4401056612   Pine Ridge Valley Trail                                                         220              220
  4400656518   Victoria Park - Phase 3                                                         815              815
               Parkland Acquisition                                                             375              375
                                                                                              2,005            2,005

Roads

  4031055369   Annual Specific Area Transportation MP                                          400              400
  4031011015   Glover - Rymal to Twenty Rd                                                     740              740
  4031011015   King - York to Market                                                           850              850
  4031011015   McNiven - Mohawk to Golf Links                                                  850              850
  4030955926   TMP Performance Measurement                                                     100              100
  4030815820   Traffic Counts Program                                                          155              155
  4030855820   Transportation Demand Management Programs                                       100              100
  4030955940   Transportation Tomorrow Survey                                                   80               80
  4031011015   Upper Wellington - Bryna to Towercrest & Stone Church to Rymal                 1,390            1,390
  4031011015   Wilson - Wentworth to Sherman                                                   900              900
  4031011015   York Rd - Newman Rd to Valley Rd                                                 200              200
                                                                                              5,765            5,765

Strategic Projects

               Waterfront Development Corp                                                    2,000            2,000
               Economic Development Initiatives                                               2,500            2,500
                                                                                              4,500            4,500

               Total Additional Projects                                                     12,270           12,270




                                                  Page 45 of 46
                                                                         Appendix A to Report FCS09114

                                     CITY OF HAMILTON
                                OPTION 3 - 1.0% LEVY INCREASE
                                   ADDITIONAL PROJECTS
                                             (000's)
                                                                          2010              2010
                                                                      Gross Budget        Net Budget
                                                                           $                  $

Open Space Development

4400656512 Jackson Heights Park - Phase 1, Park Development.                     200                200
4400756641 Winona Park Redevelopment Phase 2                                     280                280
4401056090 Johnson Tew Park                                                      115                115
4401056612 Pine Ridge Valley Trail                                               220                220
4400656518 Victoria Park - Phase 3                                               815                815
              Parkland Acquisition                                              2,375              2,375
                                                                                4,005              4,005
Roads

4031055369 Annual Specific Area Transportation MP                                400                400
4031011015 Glover - Rymal to Twenty Rd                                           740                740
4031011015 King - York to Market                                                 850                850
4031011015 McNiven - Mohawk to Golf Links                                        850                850
4030955926 TMP Performance Measurement                                           100                100
4030815820 Traffic Counts Program                                                155                155
4030855820 Transportation Demand Management Programs                             100                100
4030955940 Transportation Tomorrow Survey                                            80                80
4031011015 Upper Wellington - Bryna to Towercrest & Stone Church to             1,390              1,390
4031011015 Wilson - Wentworth to Sherman                                         900                900
4031011015 York Rd - Newman Rd to Valley Rd                                      200                200
4031010012 Annual Railway Roadway Crossings Rehabilitation Progra                150                150
4031090520 Annual Streetscape Litter Container Replace Program                   100                100
4031011015 Central / Orchard / Valleyview - Wilson to north end                  650                650
4031051999 Construction Utility Vehicle Purchase                                     60                60
4030707750 Industrial Zone Air Quality Initiative                                250                250
4031011015 Mohawk - McNiven to LINC                                              490                490
4031011015 Paramount - Winterberry to Mistywood                                 1,850              1,850
4031011015 Upper Paradise - Mohawk to Sanatorium                                 350                350
4031019101 Wellington - Barton to Burlington                                      100                100
                                                                                9,765              9,765

Strategic Projects

              Waterfront Development Corp                                       2,000              2,000
              Economic Development Initiatives                                  2,500              2,500
                                                                                4,500              4,500


              Total Additional Projects                                        18,270             18,270



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