Debt Report - Quarter 4 Financial Update (2016)

Debt Update

Standard & Poor's (S&P) has had Niagara rated AA with a stable outlook since April 5, 2001 when S&P and 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 per cent 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	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	$22,799	$38,993
Niagara Regional Police	88,327	12	88,339	4,500	(3,746)	89,094	11,580	100,674
Roads	81,740	3,402	85,142	12,213	(11,667)	85,688	65,596	151,284
Public Health	4,479	2,920	7,399	1,970	(1,100)	8,269	10,185	18,454
Community Services	24,241	893	25,134	-	(2,224)	22,910	7,415	30,325
Niagara Regional Housing	16,516	-	16,516	5,603	(1,813)	20,306	2,598	22,904
Planning	207	-	207	-	(85)	121	-	121
Total Levy	236,368	(50)	236,318	27,876	(21,612)	242,582	120,173	362,755
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	(26,112)	317,937	120,173	438,110
Debt Assumed for Others (External)	251,899	81	251,980	38,638	(27,948)	262,671	-	262,671
Total Niagara Region & External	$567,648	$505	$568,153	$66,514	$(54,059)	$580,608	$120,173	$700,781

2016 Q4 Debt Issuances

Bylaw 72-2016: Infrastructure Ontario, $9,066, 30 years at 3.34 per cent for Town of Pelham.

Bylaw 73-2016: Infrastructure Ontario, $1,321, 10 years at 2.29 per cent for City of Welland.

Tile Drainage TD2016-12-LI $25, 10 years at 6.0 per cent for Lincoln.

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%