Debt Report - Quarter 2 Financial Update (2016)

Debt Update

Standard & Poor's has had Niagara rated AA with a stable outlook since April 5, 2001 when Standard & Poor's and CBRS (Canadian Bond Rating Service) merged their ratings. The ratings reflect Standard & Poor's opinion of Niagara's exceptional liquidity, strong budgetary performance, and low debt burden. The stable outlook reflects Standard & Poor's expectations that Niagara's after-capital deficits will be moderate; its liquidity will be exceptional; and that its tax-supported debt burden, net of debt on-lent to self-supporting lower-tier municipalities, will remain below 50% of consolidated operating revenue within the two-year outlook horizon. Niagara continually strives to improve our credit rating, as it sends a strong, positive message to investors, and directly impacts our cost of borrowing in the capital markets.

Key Rating Factors	Standard & Poor's Assessment
Institutional Framework	Very Predictable and well-balanced
Economy	Average
Financial Management	Strong
Budgetary Flexibility	Average
Budgetary Performance	Strong
Liquidity	Exceptional
Debt Burden	Low
Contingent Liabilities	Very Low

Department	Total Debt as at December 31, 2015	Sinking Fund, Capital Lease, & EFMS Adjustments	Total Adjusted Debt as at December 31, 2015	Year to Date Debt Issued	Year to Date Principal Payments	Total Adjusted Debt as at June 30, 2015	Forecasted Principal Payments	Unissued Debt	Total Forecasted Adjusted Debt & Unissued As at December 31, 2016
Niagara Region - Levy
General Government	$ 20,858,721	(7,276,585)	$ 13,582,136	$ 3,589,903	$ (491,337)	$ 16,680,702	$ (486,535)	$ 42,950,112	$ 59,144,279
Niagara Regional Police	88,327,113	12,209	88,339,322	4,500,000	(962,979)	91,876,343	(2,782,787)	16,976,000	106,069,556
Roads	81,740,055	3,401,742	85,141,797	12,213,049	(844,989)	96,509,857	(10,821,598)	70,377,936	156,066,195
Public Health	4,478,655	2,920,000	7,398,655	1,970,097	(34,179)	9,334,574	(1,065,836)	210,000	8,478,737
Community Services	24,241,148	893,000	25,134,148	-	(647,874)	24,486,274	(1,576,232)	-	22,910,042
Niagara Regional Housing	16,515,694	-	16,515,694	5,602,844	(430,841)	21,687,697	(1,381,875)	3,344,010	23,649,832
Planning	206,676	-	206,676	-	(27,368)	179,309	(58,000)	-	121,309
Total Levy	236,368,062	(49,634)	236,318,428	27,875,893	(3,439,566)	260,754,755	(18,172,863)	133,858,058	376,439,950
Niagara Region - Rate
Wastewater	64,765,902	379,459	65,145,361	-	(2,548,916)	62,596,445	(96,216)	-	62,500,228
Water	10,203,596	94,403	10,297,999	-	(436,944)	9,861,055	-	-	9,861,055
Waste Management	4,410,819	-	4,410,819	-	(676,048)	3,734,771	(741,000)	-	2,993,771
Total Rate	79,380,317	473,862	79,854,179	-	(3,661,908)	76,192,271	(837,216)	-	75,355,055
Total Niagara Region	315,748,379	424,228	316,172,607	27,875,893	(7,101,474)	336,947,026	(19,010,079)	133,858,058	451,795,005
Debt Assumed for Others (External)	251,899,250	80,884	251,980,134	28,226,107	(5,905,064)	274,301,177	(22,042,512)	-	252,258,665
Total Niagara Region & External	$ 567,647,629	$ 505,112	$ 568,152,741	$ 56,102,000	$ (13,006,537)	$ 611,248,203	$ (41,052,591)	$ 133,858,058	$ 704,053,670

2016 Debt Issuances

Bylaw 35-2016: Capital Markets for $52,852,000, 10 years at 2.068%. Niagara Region portion $27,875,893, Local Area Municipalities portion $24,976,107: Fort Erie $2,200,000; Niagara Falls $1,470,607; Pelham $5,750,000; Port Colborne $296,000; St. Catharines $11,143,500; Welland $4,116,000.

Bylaw 36-2016: Infrastructure Ontario, $3,200,000, 30 years at 3.28% for Town of Lincoln. Tile Drainage TD2016-01-NF $50,000, 10 years at 6.00% for Niagara Falls.

Annual Repayment Limits

• Niagara Region - 6.45%
• Fort Erie - 4.39%
• Grimsby - 3.78%
• Lincoln - 2.82%
• Niagara Falls - 6.14%
• NOTL - 3.96%
• Pelham - 6.79%
• Port Colborne - 6.98%
• St. Catharines - 8.19%
• Thorold - 2.15%
• Wainfleet - 1.10%
• Welland - 10.73%
• West Lincoln - 4.41%