Debt Report - Quarter 2 Financial Update (2016)
(in thousands of dollars)

Debt Update

S&P (Standard & Poor's) has had Niagara rated AA with a stable outlook since April 5, 2001 when S&P and CBRS (Canadian Bond Rating Service) merged their ratings. The ratings reflect S&P's opinion of Niagara's exceptional liquidity, strong budgetary performance, and low debt burden. The stable outlook reflects S&P'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

Debt Report

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	$ 20,859	$ (7,277)	$ 13,582	$ 3,590	$ (978)	$ 16,194	$ -	$ 42,950	$ 59,144
Niagara Regional Police	88,327	12	88,339	4,500	(3,139)	89,701	(607)	16,976	106,070
Roads	81,740	3,402	85,142	12,213	(11,667)	85,688	-	70,378	156,066
Public Health	4,479	2,920	7,399	1,970	(1,100)	8,269	-	210	8,479
Community Services	24,241	893	25,134	-	(2,224)	22,910	-	-	22,910
Niagara Regional Housing	16,516	-	16,516	5,603	(1,716)	20,402	(96)	3,344	23,650
Planning	207	-	207	-	(85)	121	-	-	121
Total Levy	236,368	(50)	236,318	27,876	(20,909)	243,285	(703)	133,858	376,440
Niagara Region - Rate
Wastewater	64,766	379	65,145	-	(2,645)	62,500		-	62,500
Water	10,204	94	10,298	-	(437)	9,861	-	-	9,861
Waste Management	4,411	-	4,411	-	(1,417)	2,994		-	2,994
Total Rate	79,380	474	79,854	-	(4,499)	75,355	-	-	75,355
Total Niagara Region	315,748	424	316,173	27,876	(25,408)	318,640	(703)	133,858	451,795
Debt Assumed for Others (External)	251,899	81	251,980	28,226	(26,275)	253,932	(1,673)	-	252,259
Total Niagara Region & External	$ 567,648	$ 505	$ 568,153	$ 56,102	$ (51,683)	$ 572,572	$ (2,376)	$ 133,858	$ 704,054

2016 Debt Issuances

"Bylaw 35-2016: Capital Markets for $52,852, 10 years at 2.068 per cent. Niagara Region portion $27,876, Local Area Municipalities portion $24,976 (Fort Erie $2,200; Niagara Falls $1,471; Pelham $5,750; Port Colborne $296; St. Catharines $11,143; Welland $4,116).

Bylaw 36-2016: Infrastructure Ontario, $3,200, 30 years at 3.28 per cent for Town of Lincoln.

Tile Drainage TD2016-01-NF $50, 10 years at 6.0 per cent 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%