Department: Financial Services Chair Liz Iwaskiw and...Department: Financial ServicesMarch 20, 2017 Chair Liz Iwaskiw and Members of Finance Committee Re: Unaudited 2016 Year End Financial

Department: Financial ServicesMarch 20, 2017

Chair Liz Iwaskiw andMembers of Finance Committee

Re: Unaudited 2016 Year End Financial Information

This report provides Finance Committee with highlights of the 2016 General Fund,Utility Fund and Reserve Funded operations for the year ended December 31, 2016.The narrative in this report has been prepared by the managers of each respectiveBusiness Unit.

Attached for your information are:

A. Summary of Operations i. General Fund – 2016 Corporate Accounts (A-1) ii. General Fund – 2016 Business Unit Summary of Operations (A-2)iii. Utility & Reserve Funds – 2016 Summary of Operations (A-3)iv. Narrative to the Summary of Operations (A-4)

B. Statement of Reserves (Attachment B)C. 2016 Budget Appropriation Unexpended (Carry Overs) (Attachment C) D. Summary of Subdivision Surplus

i. Industrial Subdivision Funding Analysis (Attachment D-1) ii. Residential Subdivision Funding Analysis (Attachment D-2)

E. Offsite Account Analysis (Attachment E)F. Investment Summary (Attachment F)G. External & Internal Borrowings (Attachment G)H. Affordable Housing & Heart of Our City Committee (Attachment H)I. GST Rebates (Attachment I)J. Corporate Budget Contingencies (Attachment J)K. 2015 - 2018 Budget Initiatives (Attachment K)L. 2016 CIP Summary (Attachment L)

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As Finance Committee is aware, December 31, 2016 marks the second year of theCity's four-year operating budget (for 2015 - 2018). To accommodate the four-yearbudget cycle, Business Units are expected to operate within their 48 month budget. Ifthere is a shortfall after the second year, Business Units are expected to overcome thedeficit by adjusting expenditures in the remaining two years of the four-year budget(2017-2018); and if the experience after the second year results in net underexpenditures, the Business Units have the ability to roll the amounts over to assist theiroperations during 2017-2018.Conclusion

To conclude we are extremely pleased with the second year of our sixth multi-yearbudget cycle. The Business Units within our organization continue to do an admirablejob of providing established levels of service to our community and managing budgetfunds responsibly within our overall four year operating budget. In addition, ourfinancial policies continue to serve the City of Lethbridge and its residents well and giveus a solid financial position for the future. We look forward to continuing successes inthe future.

Respectfully submitted,

Corey Wight, CPA, CA Barry Sawada, CPA, CA Garth Sherwin, FCPA, FCACity Treasurer Controller City Manager

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Attachment A - 1

CITY OF LETHBRIDGEUnaudited 2016 Summary of OperationsGeneral Fund - Corporate Accounts

Budget(Net Revenue)

Net Expenditure

Actual(Net Revenue)

Net Expenditure

Variance

Pos (Neg)

General FundCorporate Accounts

Property tax and general revenues $ (154,458,220) $ (155,459,548) $ 1,001,328Permit, development & license revenues (4,794,200) (4,981,451) 187,251Employee Benefit accounts - (81,577) 81,577Grants to organizations 1,128,100 1,132,686 (4,586)

(158,124,320) (159,389,890) 1,265,570Non-discretionary business unit variances

Corporate fuel costs 1,829,800 1,026,573 803,227Utility costs for tax supported City facilities 3,134,733 2,891,381 243,352European Elm Scale Project - 185,000 (185,000)

4,964,533 4,102,954 861,579Total Corporate Surplus $ (153,159,787) $ (155,286,936) $ 2,127,149

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Attachment A - 2

CITY OF LETHBRIDGEUnaudited 2016 Summary of OperationsGeneral Fund - Business Unit Operations

2016 2016 2016 2015 TotalBudget

(Net Revenue)Net Expenditure

Actual(Net Revenue)

Net Expenditure

Variance

Pos (Neg)

Roll Over

Pos (Neg)

Actual

Pos (Neg)

Boards and CommissionsGalt Museum $ 1,726,855 $ 1,696,260 $ 30,595 $ - $ 30,595Lethbridge Police Services 34,347,706 34,338,967 8,739 255,165 263,904Public Library 5,884,621 5,877,353 7,268 - 7,268

General GovernmentCity Clerk Department 772,407 770,201 2,206 9,994 12,200City Manager & Communications Dept. 1,188,893 1,178,731 10,162 17,016 27,178City Solicitor Department 336,576 334,179 2,397 7,511 9,908Economic Development 1,349,485 1,348,087 1,398 199 1,597Mayor & City Council Office 825,560 733,685 91,875 60,520 152,395Pay-As-You-Go 12,752,000 12,752,000 - - -

Corporate ServicesAssessment & Taxation 1,635,336 1,634,808 528 9,692 10,220Financial Services 2,826,285 2,803,667 22,618 87,886 110,504Human Resources 1,841,110 1,848,231 (7,121) 5,620 (1,501)Information Technology 3,573,580 3,553,003 20,577 2,705 23,282

Community ServicesCommunity & Social Development 1,069,499 1,069,499 - - -Community Services Support 948,435 948,435 - 27,495 27,495ENMAX Centre 1,726,552 1,614,749 111,803 69,458 181,261Facility Services 5,386,387 5,386,387 - - -Fire & Emergency Services 22,005,337 21,899,386 105,951 104,480 210,431Helen Schuler Nature Centre 655,229 647,169 8,060 55 8,115Public Safety Communications Centre - (178,117) 178,117 542,424 720,541Recreation & Culture 8,794,554 8,789,244 5,310 49,900 55,210Regulatory Services 1,347,395 1,254,488 92,907 96,912 189,819Transit and Accessible Transportation 11,064,845 11,178,895 (114,050) 358,567 244,517

Planning and Development ServicesDevelopment Services 2,731,679 2,717,873 13,806 20,609 34,415Inspection Services 2,315,053 2,311,052 4,001 157,463 161,464

Infrastructure ServicesInfrastructure Services Administration 691,783 697,640 (5,857) 7,931 2,074Parks Maintenance and Management 11,963,724 11,977,475 (13,751) 5,872 (7,879)Storm Sewer Maintenance 342,335 345,114 (2,779) 3,430 651Transportation 10,059,366 10,013,400 45,966 164,024 209,990

Total $150,162,587 $149,541,861 $ 620,726 $2,064,928 $2,685,654

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Attachment A - 3

CITY OF LETHBRIDGEUnaudited 2016 Summary of OperationsSummary of Utility and Reserve Funds

Budget Actual VariancePos (Neg)

Utility Funded OperationsWaste Services

Revenues $ 5,940,000 $ 6,230,558 $ 290,558Expenses 5,940,000 6,049,621 (109,621)Surplus - 180,937 180,937

Recycling ServicesRevenues 1,789,200 1,857,326 68,126Expenses 1,789,200 1,834,769 (45,569)Surplus - 22,557 22,557

LandfillRevenues 8,606,415 8,744,437 138,022Expenses 8,606,415 8,739,469 (133,054)Surplus - 4,968 4,968

WastewaterRevenues 15,624,000 17,143,400 1,519,400Expenses 15,624,000 17,008,816 (1,384,816)Surplus - 134,584 134,584

WaterRevenues 21,474,000 23,145,396 1,671,396Expenses 21,474,000 22,950,660 (1,476,660)Surplus - 194,736 194,736

ElectricRevenues 65,210,721 61,296,376 (3,914,345)Expenses 65,210,721 61,273,190 3,937,531Surplus - 23,186 23,186

Reserve Funded OperationsCemeteries

Revenues 869,900 921,269 51,369Less expenditures 1,341,899 1,246,952 94,947Plus tax supported funding 471,999 471,999 -Transfer to the Reserve - 146,316 146,316

Community LightingRevenues 9,500 82,832 73,332Less expenditures 2,534,700 1,981,503 553,197Plus tax supported funding 2,525,200 2,525,200 -Transfer to the Reserve - 626,529 626,529

Fleet ServicesRevenues 11,106,200 11,310,071 203,871Less expenditures 7,365,414 7,068,827 296,587Transfer to the Reserve 3,740,786 4,241,244 500,458

Real Estate & Land Development OperationsRevenues - - -Less expenditures 1,275,193 1,184,568 90,625Transfer from Subdivision Surplus (1,275,193) (1,184,568) 90,625

ParkingRevenues 1,338,100 1,261,548 (76,552)Less expenditures 671,464 512,369 159,095Transfer from reserve to operations (135,000) (135,000) -Transfer to the Reserve 531,636 614,179 82,543

Risk ManagementRevenues 3,156,683 3,155,608 (1,075)Less expenditures 3,116,683 2,809,970 306,713Transfer to the Reserve $ 40,000 $ 345,638 $ 305,638

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Narrative to the Summary of Operations

The following provides Finance Committee with an overview of the operations of the City ofLethbridge, and are summarized under the following areas:

I General Fund Operations

a. Corporate Accounts

b. Business Unit Operations

II Utility Funded Operations

III Reserves

IV Glossary of Terms

I.a. General Fund - 2016 Corporate Accounts

Corporate Accounts of $2,127,149 - Specific positive and negative budget variances resulting fromfactors not attributable to the business unit management (e.g. corporate revenues and utility costs oncity facilities) are reported as a corporate responsibility.

By City policy, the corporate portion of the General Fund surplus accrues to the Municipal RevenueStabilization Reserve.

The major areas are summarized as follows:

Property tax and general revenues - ended the year with a positive variance of $1,001,300.

Property Taxes - ended the year with a positive variance of $754,400. This surplus is mainly dueto higher than anticipated growth of $600,000 in residential and commercial properties as well aslower than budgeted losses related to tax appeals of $154,400.

General Revenues - ended the year with a positive variance of $246,900. The surplus was dueto higher than budgeted transfers from the Water and Landfill Utilities to General Operations of$123,000 and $14,000 respectively, higher than budgeted penalties on taxes of $70,000, a surplusin unconditional operating grants of $50,000 and partially offset by negative variances of$(10,100) in general revenue accounts.

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Permit, development & license revenues - ended the year with a positive variance of $187,300.Planning and Development operations ended 2016 with a moderate revenue surplus over budget.While Land use amendments, subdivision and development activity was slightly lower than forecast,building permits and inspection revenues for new Commercial and Institutional construction washigher. In addition, growth in the number of business licenses combined with a fee increase resultedin an overall positive variance.

Utility costs for tax supported City facilities - ended the year with a positive variance of$243,400. Electricity experienced a surplus of $236,400 as rates didn't increase as much asanticipated. Natural gas is in a surplus of $51,100 because 2016 was a warmer year than average. City Utilities were in a deficit of $(44,100).

Corporate fuel costs - ended the year with a positive variance of $803,200. This is primarily due tolower than budgeted Transit fuel prices.

European Elm Scale Project - ended the year with a negative variance of $(185,000). Councilapproved $380,000 for the treatment of City trees to mitigate the impact of European Elm Scale (EES)at the June 13, 2016 Council meeting. This money was used to fund the treatment of approximately2,300 trees by a third party contractor. In addition to this work, the City’s Urban Forestry crews alsodedicated resources towards the fight against EES by injecting approximately 1,400 trees withTreeAzin and pressure washing with water to remove the EES insect and sooty mould that is left onsmaller affected trees. The Parks department has also purchased approximately 25 litres of TreeAzinchemical and injection kits to be used in early 2017 to further protect the City’s Elm Tree population.Total treatment costs amounted to approximately $(565,000) in 2016.

I.b. General Fund - 2016 Business Unit Operations

Business Unit accounts - The total 2016 Business Unit roll over to 2017 was $620,726 (0.41% of budget).Business Unit accounts are shown in detail by Business Unit in attachment A-2.

Significant areas contributing to the tax supported Business Unit variances are described below:

Boards and Commissions

Galt Museum - ended the year with a positive varinance of $30,600. The variance is due to timing ofexpenditures. Fort Whoop-up operations was less than budget by $15,000 mainly due to difficulty insourcing artifacts for display. Window coverings for $15,600 for the Museum Viewing Gallery wereordered in 2016 and not installed until January, 2017.

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Boards and Commissions (continued) Lethbridge Police Services (LPS) - ended the year with a positive variance of $8,700. Revenuewas greater than budgeted by $127,300, mainly due to revenue received from Provincial programfunding for the Alberta Law Enforcement Response Team (ALERT) and partially offset by the loss offunding for the Provincial Officer Grant (for the period Apr 1, 2016 to December 31, 2016). Operatingexpenses generated a net positive variance of $135,900 due to lower than budgeted expensesrelating to uniforms, supplies, training and travel (as a result of the officer vacancies), contractualservices, fleet and partially offset by additional technology costs. Overall wages and overtime ended ina negative variance of $(209,500) mainly due to a greater number of serious case files. In addition, a$(45,000) approved carry over will be used for a new explosive magazine site (safe and securecontainer/storage facility).

Public Library - ended the year with a positive variance of $7,300. Positive variances include excessrevenue of $60,000 (miscellaneous income, fines and fees and increased provincial grant) and underexpenditures of $270,000 (wages, travel, information technology, advertising and recruitment). Thesepositive variances were partially offset by $(262,700) over expenditures (equipment and supplies, andvehicle maintenance) and a $(60,000) transfer of multi-year grants to deferred revenue for use infuture years.

General Government and Corporate Services

Mayor & City Council Office - ended the year with a positive variance of $91,900. This positivevariance was due to unused travel, promotional materials, and communication expenses.

Community Services

ENMAX Centre - ended the year with a positive variance of $111,800. This was a result of highernet revenues in Food and Beverage, sponsorships and various building operation savings of $565,800. This was partially offset by higher costs in events and video scoreboard maintenance which resultedin greater than budgeted expenditures of $(454,000).

Fire & Emergency Services - ended the year with a positive variance of $106,000. The variance isprimarily due to lower than budgeted wage expense relating to staff attrition and partially offset bythe cyclical recruiting of new hires of $612,000. This is offset by technology upgrades of $(90,000),required lifecycle maintenance $(356,000), and employee mental health programs of $(60,000).

Public Safety Communications Centre - ended the year with a positive variance of $178,100. Thevariance is due to wage under expenditures relating to the deferral of hiring staff due to a delay infinalization of the Alberta Health Services dispatch contract.

Regulatory Services - ended the year with a positive variance of $92,900. This surplus is due to anincrease in park patrols and dog licensing efforts, resulting in increased dog license revenues, as wellas a change in spay/neuter procedures and an increase in adoption fees for adopted animals.

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Transit and Accessible Transportation - ended the year with a negative variance of $(114,100).This is due to a one time increase in repairs, maintenance & supplies of $(225,000) to reduce theoverall backlog of repairs. This year's farebox purchases are $(160,000) over budget due to higherthan budgeted costs and replacement needs. Building expenses are $(80,000) over budget duemainly to the purchase of lighting for the paint booth and wages and operations are $(20,000) overbudget due to internal training costs and sick time. This is offset by a surplus in advertising and otherrevenue which is $200,000 higher than budgeted, increased ridership revenue of $135,000, and loweradvertising and supply costs of $35,900. It should be emphasized that the overall 2016 negativevariance will be offset by the prior year surplus of $358,600.

Infrastructure Services

Transportation - ended the year with a positive variance of approximately $46,000. This variancewas due to a surplus of $27,500 in Transportation studies accounts as well as a surplus of $18,500 inTransportation operations maintenance accounts.

II 2016 Utility Funded Operations

Utility Services - ended the year with a balanced position.

i) Under expenditures were realized in the Customer Call Center, CollectionsManagement, contract costs for disconnects / reconnects and systemmaintenance accounts.

$ 205,700

ii) Bad Debt expense - the bad debt write off was less than expected. 143,600iii) System billing expenses ended the year under budget 76,300iv) System management accounts ended the year in a positive variance due

primarily to a delay in the upgrading of computer hardware.45,000

v) Deficit in Utility administrative fee revenue - revenues from Utility serviceadministration fees did not meet budgeted targets.

(60,200)

vi) Late payments penalties and disconnect / reconnect charges and feesended the year less than budgeted.

(111,300)

vii) The 2016 Utility services operating surplus has been allocated to theIntegrated Customer Services Strategy project.

(299,100)

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Waste and Recycling Services - is comprised of the Waste, Recycling and Landfill operations.

Waste (Solid Waste) Services - ended the year with a positive variance of $180,900. The variancewas due to factors as follows:

i) Revenues ended with a positive variance due primarily to greater thanbudgeted community growth.

$ 290,600

ii) Residential and commercial collections ended the year with a negativevariance due primarily to a increase in costs relating to staff transitions aswell as garbage truck maintenance.

(109,700)

The accumulated surplus as at December 31, 2016 is $1,658,278; 2015 was $1,477,341.

Recycling Services - ended the year with a positive variance of $22,600. The major factors thatcontributed to this variance are as follows:

i) Recycling revenues finished the year with a positive variance due to higherthan budgeted customer growth.

$ 68,100

ii) Waste prevention (education and green waste) accounts finished the yearwith a positive variance.

18,500

iii) Recycling programs ended the year with a negative variance due primarilyto higher than budgeted commodity processing costs as well as increasedcosts in having the contractor empty the bins more frequently at therecycling depots due to increased customer usage at the depot sites.

(64,000)

The accumulated surplus as at December 31, 2016 is $853,206; 2015 was $830,649.

Landfill Operations - ended the year with a positive variance of $5,000. The major factors thatcontributed to this are as follows:

i) Landfill Revenues ended the year with a positive variance due primarily toincreased 2016 tipping fees in support of the business recycling strategy.

$ 138,000

ii) Consistent with an increase in revenues is an increase in the 10%contribution to the General Fund.

(13,900)

iii) Landfill operation costs ended the year with a negative variance due to achange in operational strategy for the delivery of the Landfill's contractedservices.

(119,100)

The accumulated surplus as at December 31, 2016 is $1,712,857; 2015 was $1,707,889.

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Wastewater Operations - ended the year with a positive variance of $134,600. The majorcontributing factors to this are as follows:

i) Commercial and Industrial revenues realized during the year werehigher than budgeted. This positive variance is primarily the result ofhigher than usual sewer loading from industry. Industrial customerscan mitigate additional costs through more diligent wastewater pre-treatment.

$ 848,300

ii) Residential and regional revenues realized during the year resulted in apositive variance due primarily to higher than anticipated water usage(see water operations).

671,100

iii) Wastewater collection accounts ended the year with a positive variancedue to decreased repairs and maintenance activities required in 2016.

180,900

iv) Wastewater Engineering and Technical support accounts ended theyear with a positive variance due to under expenditures in the 2016wastewater collection system condition assessment program.

84,400

v) Wastewater Administration accounts ended the year with a positivevariance due primarily to lower than budgeted charges from UtilityServices for meter data management services.

29,900

vi) Wastewater Treatment Plant (WWTP) maintenance and processoperations ended 2016 with a negative variance due primarily togreater than budgeted natural gas charges as well as greater thanbudgeted contracted services for the removal of sludge from theWWTP lagoons.

(189,000)

vii) A portion of the 2016 operating surpluses were applied to the 2014-2023 Capital Improvement Program Projects D-30 (3rd AvenueReconstruction and Streetscaping) and E-13 (Wastewater TreatmentPlant Headworks and Clarifier Upgrade) to minimize planned projectborrowings.

(1,491,000)

The accumulated surplus as at December 31, 2016 is $3,356,395; 2015 was $3,221,811. These amountswere identified as a short-term financing option for the anticipated Off-Site Account shortfall in the 2018-2021 period.

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Water Operations - ended the year with a positive variance of $194,700. The major contributingfactors to this are:

i) Water revenues ended the year with a positive variance of $1,671,400(7.8% greater than budget). This increase is due primarily to higherthan budgeted Residential (related to the warm weather in the spring),General Service, and Commercial water sales.

$ 1,671,400

ii) Water Treatment Plant and water distribution system accounts endedthe year with a positive variance of $245,300 due primarily tounderexpenditures in natural gas and energy charges at the plant aswell as a decrease in the amount of chemicals required to treat therelatively clean river water drawn from the Oldman river in the springand summer months.

245,300

iii) Water Engineering and Technical support ended the year with apositive variance.

27,200

iv) Water Administration accounts ended the year with a positive variancedue primarily to lower than budgeted charges from Utility Services formeter data management services.

15,200

v) Consistent with an increase in water sales is an increase in the 8%contribution to the General Fund.

(122,600)

vi) A portion of the 2016 operating surpluses were applied to the 2014-2023 Capital Improvement Program Projects D-30 (3rd AvenueReconstruction and Streetscaping) and E-21 (Water Treatment PlantProcess Redundancy) to minimize planned project borrowings.

(1,641,800)

The accumulated surplus as at December 31, 2016 is $3,833,058; 2015 was $3,638,322. These amountswere identified as a short-term financing option for the anticipated Off-Site Account shortfall in the 2018-2021 period.

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Electric Utility

The Electric Utility generated a positive variance of $23,200 from operations for the 2016 fiscal year,broken down as follows:

Fibre Operations - positive variance $ 164,500Distribution Tariff - negative variance (1,290,500)Regulated Rate Tariff - positive variance 233,500Transmission Tariff - positive variance 915,700Total Electric Operations - positive variance $ 23,200

Fibre Operations - ended the year in a positive variance of $164,500 due to depreciation and cost ofcapital amounts being lower than budgeted. Also the data systems engineer position was not filleduntil January 2017.

Distribution Tariff - ended the year with a negative variance of $(1,290,500). This can beattributed to the writeoff of electric meters related to the electric meter replacement project andadditional deprecation costs due to a requirement by the Alberta Electric System Operator (AESO) totransfer costs related to the 181S West Side Substation from the Transmission Tariff to the

Distribution Tariff.

Regulated Rate Tariff - experienced a positive variance of $233,500. Throughout much of 2016consumption estimates were lower than actual. Because of ongoing low energy prices, this resulted insales based upon hedge price and wholesale costs (pool price) below hedge price.

Transmission Tariff - experienced a positive variance of $915,700 primarily due to a reduction inmaintenance costs for substations and transmission lines. This can be attributed to significant capitalwork being done over the past few years creating a more reliable system. Additionally, the Cost ofCapital and Depreciation are lower due to the AESO requirement to transfer costs to the Distribution

Tariff as noted above.

The 2016 Electric Operations actual positive variance of $23,200 will be transferred to the ElectricUtility Reserve in 2017 in accordance with City Policy

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III 2016 Reserves

Cemeteries - the 2016 net transfer to the Cemeteries Reserve was in a positive variance of$146,300, comprised of $23,700 of interest revenue, Rights to Interment and Interment Servicesrevenue which exceeded the 2016 budget expectations by $51,400, as well as a surplus in variousoperational expenditures of $71,200.

Community Lighting - finished the year with a positive net transfer to the reserve of $626,500.Roadway Lighting distribution and consumption charges ended the year in a surplus position of$535,800 due primarily to additional savings realized due to the conversion of the city's 13,000streetlights to LED bulbs. Roadway lighting maintenance programs also finished the year underbudget by approximately $90,700 due to decreased maintenance required on the networks 13,000streetlights. This under expenditure (surplus) will be balanced through an increased transfer to theCommunity Lighting Reserve.

Parking Operations - the transfer to the reserve was greater than budgeted by $82,500. Parkingrevenues finished the year in a shortfall position ($76,600) due to a decrease in revenue from On-Street Parking. This deficit was off-set by a $159,100 surplus in On-street parking operations due inlarge part to both a reduction in the amount of parking meters and mechanisms replaced in 2016.

Snow Clearing - ice control and snow removal operations ended the year in a surplus position of$1,019,300. In accordance with City Council policy, any annual surplus / deficit from sanding, snowand ice removal operations will be transferred to / funded from the MRSR.

Traffic Safety Act Revenues - ended the year in a $212,000 positive variance as a result of anincrease in traffic ticket revenue. Revenues include photo radar for the City of Lethbridge, Provincialviolation fines (tickets for speeding, failing to stop, going through red lights, etc.) and revenue fromTaber for delivery of Photo Radar Enforcement. The positive variance is attributed to increased finerates implemented by the Province in 2015, which occurred after the approval of the budget. Inaccordance with City Council policy, the Traffic Safety Act revenues will be directed to the MunicipalRevenue Stabilization Reserve and do not impact the year end operating surplus.

Risk Management - is in a positive variance of approximately $305,600 due to lower thananticipated insurance premium costs. The surplus was transferred to the Insurance Reserve at yearend.

Fleet Services - Fleet operations ended the year with a positive net transfer to the reserve of$500,500 more than budgeted. This positive variance was due primarily to lower than budgeted fuelprices of approximately $990,000. This positive variance was partially offset by increased costsrelating to parts, consumables and outsourced specialty services that were required to keep up with abacklog of work on the City’s equipment fleet.

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IV Glossary of Terms

Business Unit Operations Roll Over - prior year(s) tax supported budget variance between theapproved budget and actual revenue or expenditures for the fiscal period. To accommodate the fouryear budget cycle, Business Units were expected to operate within their 48 month budget allocation.If there was a shortfall after the first two years, Business Units are expected to overcome the deficitby adjusting expenditures in the remaining two years of the four-year budget (2017-2018); and if theexperience after the second year resulted in a net surplus, the Business Units roll over the surplus toassist their operations during the last two years of the budget cycle.

Business Unit Operation Variance - the specific Business Unit budgeted variance between theapproved budget and actual net expenditure for the fiscal period. These variances are theresponsibility of the business unit.

Corporate Accounts - specific revenues and expenses are considered corporate in nature sincevariances are not attributable to operational decisions. These include employee benefits, propertytaxes and general revenues, permits, development and license revenues and grants to organizations.By City policy, the corporate portion of the General Fund surplus accrues to the Municipal RevenueStabilization Reserve.

Corporate Fuel - variances due to market price fluctuations versus budgeted fuel costs for taxsupported services (price variances for Fleet Service's units are offset against the Fleet Reserve).

Electric Utility Operating Surplus/(Deficit) - the City of Lethbridge electric utility's residualoperating surplus/ (deficit) is applied to/ (from) the Electric Reserve.

Non-discretionary Business Unit Variances - specific positive and negative budget variancesresulting from factors not attributable to the business unit management (e.g. windfall revenues andutility costs on city facilities) are reported as a corporate responsibility. Similar to corporate accounts,the surplus or deficit accrues to the Municipal Revenue Stabilization Reserve.

Reserve Funded Operations - city services where the expenditures of the related operations arefunded from specific revenue sources that are legally restricted for specified purposes.

Utility Costs for Tax Supported City Facilities - variances due to utility price fluctuations versusbudgeted City facility utility costs. These variances are not attributable to management decisions.

Utility Funded Operations - the City sets fees and user charges for each utility operation at a levelthat fully supports the total direct and indirect cost of the utility. Therefore, these operations areaccounted for separately from taxation supported operations.

Water, Wastewater and Waste Accumulated Surplus - the primary purpose of the surpluses isto set aside funds to provide for unanticipated or emergency expenditures that could not bereasonably foreseen during the preparation of the budget and/or for down payments on the utility'scapital projects.

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Attachment B

STATEMENT OF RESERVES

AS AT DECEMBER 31, 2016

December 312016

December 312015

OPERATING Cemeteries $ 1,448,031 $ 1,366,138 Insurance 3,921,593 3,575,955 Mayor Magrath Drive Beautification 108,177 106,826 Municipal Revenue Stabilization 19,785,549 15,953,230 Urban Parks 916,584 1,248,057

Total Operating Reserves 26,179,934 22,250,206

CAPITAL Acquire Off Street Parking 3,196,809 2,848,362 Central Business District Land Acquisition 421,576 419,667 Community Lighting 5,017,130 4,390,601 Community Reserve Fund 286,937 153,707 Electric 230,423 - Fleet Services 20,008,718 21,583,177 Major Capital Projects 13,012,418 7,829,344 Real Estate Holdings 4,813,010 4,661,734 Transit Bus 1,070,230 1,252,380

Total Capital Reserves 48,057,251 43,138,972

Total Reserves $ 74,237,185 $ 65,389,178

Total Committed Funds $ 46,974,359 $ 53,040,504

- -Current Internal Funding Requirements:Lethbridge Police Headquarters Expansion 1,449,000 2,725,000ATB Centre - Phase 1 (Ice Complex) 1,956,000 2,196,000

3,405,000 4,921,000

Total Committed Funds and Internal Funding Requirements $ 50,379,359 $ 57,961,504

In addition to the above noted commitments, each reserve has been created by City Council for a specific purpose and will beapplied to that purpose over future periods.

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Attachment B (cont'd)

Reserve AnalysisFor the period January 1, 2016 to December 31, 2016

OPERATING RESERVES

Cemeteries

The purpose of the Cemeteries Reserve is to provide for and make provision for the improvement, maintenance,management, control and operation of public cemeteries.

Balance as at January 1, 2016 $ - $ 1,366,138

Add:

Allocation from Operations 147,017 147,017

Interest earnings 23,705 23,706

170,722 170,722

Less:

Cemeteries Perpetual Care 64,423 64,423

Cemetery Marketing Plan (Budget 2012-14) 24,406 24,406

88,829

Balance as at December 31, 2016 $ 81,893 $ 1,448,031

Committed Funds:

- Cemetery Marketing Plan (Budget 2012-14) $ 5,594

$ 5,594

Insurance

The purpose of the Insurance Reserve is to stabilize the effects of rising and unpredictable insurance premiums.


Add:

Allocation from Operations 345,638 345,638


$ -

Mayor Magrath Drive Beautification

The purpose of the Mayor Magrath Drive Beautification Reserve is to provide funds to allow for maintenance of MayorMagrath Drive.

Balance as at January 1, 2016 $ - $ 106,826

Add:

Davis Properties Ltd 1,776 1,776

Thrift Lodge 364 364

Saigonese Restaurant 250 250

2,390 2,390

Less:

Land Lease Taxes (1,039) 1,039

Balance as at December 31, 2016 $ 3,429 $ 108,177

17



Municipal Revenue Stabilization

The purpose of this reserve is to stabilize the effects of fluctuating interest revenue and General Operation surpluses anddeficits on annual taxation requirements. All General Operation surpluses of prior years, return on investments, municipalconsent and access fee/franchise fee and by-law enforcement revenue surpluses, CenterSite equity refunds, internalfinancing recoveries and other allocations from General Operations are added to the reserve. Any General Operation deficitsof prior years, municipal consent and access fee/franchise fee and by-law enforcement revenue shortfalls, budgetedallocations to General Operations, one time expenses and internal financing advances are charged to the reserve.


Add:

Electric Municipal Consent and Access Fee (MCAF) 9,914,496 9,914,496

By-law enforcement 6,026,490 6,026,490

ATCO Franchise Fee 5,469,646 5,469,646

MRSR Internal Financing Recoveries (Schedule 1) 3,958,274 3,958,274

Investment and Interest Income (net of Trust Allocations) 3,250,230 3,250,231

Return on Investment (Electric ROI) 2,103,037 2,103,037

2015 General Operating Surplus 1,989,910 1,989,910

Snow Removal 1,088,070 1,088,070

CentreSite distribution allocation 275,841 275,841

Other Allocations from Capital 68,061 68,061

34,144,055 34,144,055

Less:

Budgeted Allocation to General Operations:

Electric Municipal Consent and Access Fee (MCAF) 9,197,200 9,197,200

By-law enforcement 5,612,400 (5,612,400)

Allocation to General Operations 5,250,000 5,250,000

ATCO Franchise Fee 4,410,000 4,410,000

Return on Investment (Electric ROI) 2,132,800 2,132,800

Allocation for TIPP discounts 326,356 326,357

MRSR Internal Financing Advances (Schedule 2) 2,061,089 (2,061,089)

MRSR One Time Allocations (Schedule 3) 1,321,891 (1,321,891)

3,382,980 30,311,736

Balance as at December 31, 2016 $ 3,832,319 $ 19,785,549

18



Municipal Revenue Stabilization (continued)

Schedule 1: MRSR Internal Financing Recoveries (year of final payment):

- Lethbridge Police Headquarters (2029) $ 1,084,700 $ 1,084,700

- Police technology (2018) 670,200 670,200

- Sherring Industrial Park (2020) 555,700 555,700

- ENMAX building (2027) 467,800 467,800

- Wellness Centre (2016) 425,200 425,200

- ATB Centre - Phase 1 (Ice Complex) (2029) 240,000 240,000

- Parks Asset Management (2028) 204,400 204,400

- Local Improvements Prior Years 197,574 197,574

- Galt Museum expansion (2016) 82,100 82,100

- Lethbridge Soup Kitchen (2016) 15,800 15,800

- School Bus - interest only (2023) 14,800 14,800

$ 3,958,274 $ 3,958,274

Schedule 2: MRSR Internal Financing Advances:

- Lethbridge Police Headquarters Expansion (CIP 2014-23 D-6) $ 1,276,000 $ 1,276,000

- Police Technology 545,089 545,089

- ATB Centre - Phase 1 (Ice Complex) (CIP 2014-23 D-7) 240,000 240,000

- 2,061,089

Schedule 3: MRSR One Time Allocations:

- Snow and Ice Control - Snow Plow & Sanders (Budget 2015-18 N-29) 275,800 (275,800)

- Street Sweeper (Budget 2015-18 N-30) 268,900 (268,900)

- Common Computer Aided Dispatch (CAD) (Council 2010) 184,400 (184,400)

- Lethbridge Public Library - Bookmobile Garage (Budget 2015-18 N-1) 112,302 (112,302)

- Intermunicipal Development Planning (Budget 2012-14 N-1) 110,284 (110,284)

- River Valley Development Master Plan (Budget 2012-14 N-2) 84,559 (84,559)

- Southern Alberta Art Gallery (Budget 2015-18 N-6) 80,000 (80,000)

- Nord Bridge Senior Citizens Assocation (Budget 2015-18 N-41) 75,000 (75,000)

- Ad Hoc Panel Full Time Councillors (Budget 2015-18 N-47) 66,000 (66,000)

- Library - RFID & Main Branch Modernization Project (Budget 2012-14 N-3) 27,000 (27,000)

- Rescue & Care for Lost or Abandoned Cats (Budget 2015-18 N-38) 19,158 (19,158)

- Heart of the City Housing (Budget 2015-18 N-4) 15,000 (15,000)

- Animal Welfare (Budget 2015-18 N-3) 2,488 (2,488)

- Library - Custodial Support (Budget 2012-14 N-16) 1,000 (1,000)

$ 739,198 $ 1,321,891

19




Committed Funds:

2012-2014:

- Library - RFID & Main Branch Modernization Project (Budget 2012-14 N-3) $ 334,300

- River Valley Development Master Plan (Budget 2012-14 N-2) 18,075

2014-2017:

- School Gym Upsizing (CIP 2014-23 D-31) 776,000

2015-2018:

- Heart of The City Housing (Budget 2015-18 N-4) 770,000

- Snow and Ice Control - Snow Plow & Sanders (Budget 2015-18 N-29) 292,650

- Nord-Bridge Senior Citizens Association (Budget 2015-18 N-41) 150,000

- Southern Alberta Art Gallery (Budget 2015-18 N-6) 106,000

- Lethbridge Public Library - Bookmobile Garage (Budget 2015-18 N-1) 87,698

- New West Theatre (Budget 2015-18 N-40) 20,000

- Rescue & Care for Lost or Abandoned Cats (Budget 2015-18 N-38) 18,342

- Ad Hoc Panel Full Time Councillors (Budget 2015-18 N-47) 9,000

- Animal Welfare (Budget 2015-18 N-3) 6,610

$ 2,588,675

Current 2016/17 Future

Internal Loan Requirements:

Lethbridge Police Headquarters Expansion (CIP 2017-23 D-6) $ 1,449,000 $ -

ATB Centre - Phase 1 (Ice Complex) (CIP 2014-23 D-7) 1,956,000 -

$ 3,405,000 $ -

As at December 31, 2016 internal advances amounting to approximately $30,000,000 were outstanding from this reserve.These amounts will be recovered, with interest, in future years.

20




In addition, amounts to the following community groups remain committed against this reserve. These amounts have beenrecorded as receivables by the City as at December 31, 2016.

Year MaturityOriginalAmount

Balance as atDecember 31

2016Annual

Payment

Lethbridge Softball Association 2005 2016 $ 190,000 $ - $ 12,217

Prairie Baseball Club 1999 2019 240,000 30,000 10,000

SLP Skate Park naming 2014 2023 100,000 62,500 10,000

Lethbridge & District Exhibition 2017 2032 4,420,962 4,420,962 294,730

Lethbridge Hurricanes 2012 2029 2,500,000 2,166,667 166,667

Urban Parks

The purpose of the Urban Parks Reserve is to provide for a self-sufficient pool of funds to allow for the ongoing operationand maintenance of the Urban Parks system.


Add:

Allocation from operations 416,600 416,600

Less:

Lethbridge Sport Park Change Rooms (CIP 2014-23 D-37) 698,073 698,073

Galt Gardens Master Plan (Budget 2015-18 N-15) 50,000 50,000

748,073

Balance as at December 31, 2016 $ 1,164,673 $ 916,584

Committed Funds:

- Urban Forest Management Plan (Budget 2015-18 N-8) $ 175,000

TOTAL OPERATING RESERVES as at December 31, 2016 $ 26,179,934

21



CAPITAL RESERVES

Acquire Off Street Parking

The purpose of the Acquire Off Street Parking Reserve is to provide funding necessary to develop additional off-streetparking and other parking related expenditures.


Add:

Parking Revenues

- Parking Meters 1,230,656 1,230,656

- Parking Fines 110,090 110,090

- Parking Lots 26,200 26,200

1,366,946 1,366,946

Less:

Parking enforcement 364,953 (364,953)

Administration 276,897 (276,897)

Enhance downtown maintenance (snow clearing, street sweeping etc.) 135,000 (135,000)

Parking meter operations 163,184 (163,184)

Parking lot operations 67,596 (67,596)

Atrium Building 9,919 (9,919)

Bompass Parking Structure 950 (950)

(288,593) 1,018,499

Balance as at December 31, 2016 $ 1,655,539 $ 3,196,809

Committed Funds:

- Parking Meter replacement (CIP 2014-23 D-27) $ 1,967,869

- Atrium Building 110,081 -

$ 2,077,950

Central Business District Land Aquisition

The purpose of the Central Business District Land Acquisition Reserve is to establish a source of funding for parcels of landin the Central Business District.


Add:

Patio rental 1,000 1,000

Net proceeds from sale of Oliver Building 909 909

1,909


22



Community Lighting

The purpose of the Community Lighting Reserve is to fund the replacement of community lighting assets.


Add:

Allocation from operations 626,529 626,529


Committed Funds:

- Whoop Up Drive debt paydown - principal (Council Aug 22, 2016) $ 1,653,648

- Metis Trail debt paydown - principal (Council Aug 22, 2016) 2,765,585

$ 4,419,233

These advances from the Community Lighting reserve will be repaid to the reserve from the Offsite account over ten yearscommencing in approximately 2023.

Community Reserve Fund

The purpose of the Community Reserve Fund is to provide open space for the general public's use, such as parks andrecreation areas.


Add:

Cash in Lieu of Municipal Reserve 130,496 130,496

Interest Earnings 2,734 2,734

133,230


23



Electric

The purpose of the Electric Reserve is to provide capital financing of Eletric Utility projects and rate revenue stabilization.

Balance as at January 1, 2016 $ - $ -

Add:

Allocation from Electric Capital 11,237,739 11,237,739

Return on Equity 6,986,941 6,986,941

2015 Electric Operating Surplus 463,525 463,525

18,688,205

Less:

Allocation to Electric Capital Projects 16,354,745 16,354,745

Return on Investment to the General Fund 2,103,037 2,103,037

18,457,782 18,457,782

Balance as at December 31, 2016 $37,145,987 $ 230,423

Fleet Services

The purpose of the Fleet Services Reserve is to provide for a self-sufficient pool of funds to allow for the ongoingreplacement of fleet assets.


Add:

Asset replacement contributions 3,573,769 3,573,769

Disposal Proceeds 392,036 392,036

Ambulance Donation 8,800 8,800

Recoveries:

- School Bus debt paydown - principal 32,700 32,700

4,007,305 4,007,305

Less:

Purchase of equipment 5,581,765 5,581,764

Balance as at December 31, 2016 $ 9,589,070 $20,008,718

As at December 31, 2016 internal advances amounting to about $326,000 are owing to this reserve. These amounts are tobe recovered in future years.

Committed Funds:

- Equipment Purchases (Budget 2015-2018) $ 18,240,286

- Equipment Purchases (Prior Budgets) 627,700 2,526,900

$ 18,867,986

24



Major Capital Projects

The purpose of the Major Capital Projects Reserve is to fund capital projects and buffer the effects of the short-termfluctuations in debt payments and capital expenditures on the Pay-As-You-Go plan.


Add:

Pay-As-You-Go 9,140,774 9,140,775

Interest Earnings 198,316 198,316

9,339,090 9,339,090

Less:

Leisure Complex (ATB Centre) - Phase 2 (CIP 2014-23 D-32) 3,893,948 3,893,948

Southern Alberta Ethnic Association (CIP 2014-2023 D-8) 262,068 (262,068)

4,156,016 4,156,016

Balance as at December 31, 2016 $13,495,106 $13,012,418

Committed Funds:

- ATB Centre - Phase 2 (Leisure Complex) (CIP 2014-23 D-32) $ 17,137,890

- Spitz Stadium (CIP 2014-23 D-40) 1,400,000 1,400,000

- Southern Alberta Ethnic Association (CIP 2014-2023 D-8) 137,932

$ 18,675,822

Real Estate Holdings

The purpose of the Real Estate Holdings Reserve is to provide a source of funding for land acquisitions within the city.


Add:

Right of Way Sale Proceeds 161,476 161,476

Rental Income:

College Lincoln Ford 4,785 4,785

Maple Leaf Foods 2,640 2,640

168,901 168,901

Less:

Road Closure Fees 17,625 17,625


25



Transit Bus

The purpose of the Transit Bus Reserve is to provide funding for the City portion of new transit equipment includingmaintenance and replacement of Lethbridge Transit and ACCESS-A-Ride technology and equipment.


Add:

Handi-Bus Donation 3,750 3,750

Less:

Transit and ACCESS-A-Ride Master Plan (Budget 2015-18 N-7) 185,900 185,900


Committed Funds:

-Transit and ACCESS-A-Ride Master Plan (Budget 2015-18 N-7) $ 164,100

$ 164,100

TOTAL CAPITAL RESERVES as at December 31, 2016 $ 48,057,251 $ 48,057,251

TOTAL OPERATING RESERVES as at December 31, 2016 26,179,934 26,179,934

TOTAL RESERVES as at December 31, 2016 74,237,185 $ 74,237,185

-

TOTAL COMMITTED FUNDS $ 46,974,360 46,974,360

TOTAL CURRENT INTERNAL LOAN REQUIREMENTS 3,405,000 3,405,000

TOTAL FUNDING REQUIREMENTS (43,569,360) 50,379,359

EXCESS OF RESERVES OVER CURRENT FUNDING REQUIREMENTS $ - $ 23,857,826

26

Attachment C

GENERAL FUND

COMMUNITY SERVICES $ 2,305,526

Canada day activities, committees

EQUIPMENT REPLACEMENT/MAINTENANCE 712,249 - corporate photocopiers, printers and plotters, computers, mail service, network equipment, phone system, disaster recovery, audio visual equipment

GENERAL GOVERNMENT 3,635,023 - election, legal, contingencies, City Council initiatives, Airport, environmental projects

HUMAN RESOURCES 3,165,579

flexible benefit programs, succession planning

INFRASTRUCTURE MAINTENANCE AND PLANNING 504,489

PLANNING AND DEVELOPMENT SERVICES 589,746

PROTECTIVE SERVICES 753,541

equipment replacements, Lethbridge Police Service projects

TECHNOLOGY 201,600

$ 11,867,752

BUSINESS UNIT ROLL OVER TO 2017 (see Attachment A-2) $ 2,685,654

UTILITY FUND

Electric Operations $ 106,012 Sanitation Operations cart replacement 2,001,149 Water & Wastewater Capital Works/Equipment 132,642

$ 2,239,802

- Fire and EMS projects/funding, community programs, EOC training exercise,

- database software

CITY OF LETHBRIDGEBUDGET APPROPRIATION UNEXPENDED (CARRY OVERS)

AS AT DECEMBER 31, 2016

- community and social development, library projects, affordable housing,

- arbitration, employee wellness, WCB rebates, corporate training, research projects,

- parks maintenance, engineering capital, amenities

- planning studies, municipal heritage program, downtown planning, inspection services

27

SUMMARY OF SUBDIVISION SURPLUSFor the period January 1, 2016 to December 31, 2016

2016 2015

INDUSTRIAL $ (6,128,581) $ (6,311,491)

RESIDENTIAL 13,342,511 13,707,049

NET SUBDIVISION SURPLUS $ 7,213,930 $ 7,395,558

INDUSTRIAL SUBDIVISION SURPLUSFUNDING ANALYSIS

For the period January 1, 2016 to December 31, 2016

Development Operations Funding

Funds Received from Subdivision DevelopmentSherring Industrial Park - Phase 1 $ 1,665,829

Total Funds Received from Subdivision Development 1,665,829

Funds Used for Subdivision DevelopmentSherring Industrial Park - Phase 1 62,351Sherring Industrial Park Common 34,383

Total Funds Used for Subdivision Development 96,734

Net Funds Received from Subdivision Development Operations 1,569,095

Other Activity Funding

Funds Received:Lease Revenue 14,419

Funds Used:Debt Payment - MRSR 555,700Debt Payment - ACFA 551,104Allocation in Lieu of Property Taxes 293,800

1,400,604

Net Funds Used for Other Activities (1,386,185)

Net increase in Industrial Subdivision Surplus 182,910

Industrial Subdivision Surplus Balance January 1, 2016 (6,311,491)

Total Industrial Balance December 31, 2016 $ (6,128,581)

Funds Committed for Future


Sherring:Surface Works (34 St & 26 Ave Intersection) $ 80,148Construction Giffen Road & 43 Street Gravel 40,200

120,348

Other:Industrial Park - Top Lift Paving 324,263

Total Committed Funds $ 444,611

Notes:1 To finance the deficit balance in the Industrial Subdivision Surplus Account related to the startup costs associated with the

Sherring Industrial Park, Council approved a "line of credit loan" of up to $5,500,000 as well as a $6,000,000 loan forprepayment of the Offsite Levies from the Municipal Revenue Stabilization Reserve (MRSR). Loan payments will be basedon cashflow availability within the Industrial Subdivision Surplus. As at December 31, 2016 the balance remaining to bepaid to the MRSR from Industrial Subdivision Surplus on this line of credit loan is $5,500,000 and $1,997,179 on the interimfinancing.

28

RESIDENTIAL SUBDIVISION SURPLUSFUNDING ANALYSIS


Development Operations Funding

Funds Received from Subdivision DevelopmentCrossingsPhase 3 $ 1,650,698Phase 2 1,533,250Commercial 1,435,500Phase 1 166,403

4,785,851RiverStone:Phase 17 3,111,778Phase 11 631,450Phase 22 475,353Phase 20 146,719

4,365,300SunRidge:Phase 3D 102,923

Total Funds Received from Subdivision Development 9,254,074

Funds Used for Subdivision DevelopmentCrossings:Phase 3 2,045,497Common 454,186Phase 4 29,619Phase 1-2, Commercial 28,888Phase 8 2,529

2,560,719Other:Garry Station & Blackwolf II 43,491

RiverStone:Phase 22 2,471,003Common 848,353Phase 17 229,072Phase 10,12-16,20 17,806Phase 11 8,118Phase 21 4,727Future Ph 18-19 726

3,579,805SunRidge:Common 39,793Phase 1-3D 10,010

49,803Watermark (formerly Waterbridge):Common 3,105,238Phase 1 689,759

3,794,997Total Funds Used for Subdivision Development 10,028,815Net Funds Used for Subdivision Development Operations (774,741)

Other Activity FundingFunds Received:

Land Sale BW2 Developments Ltd. 5,273,250Temple Blvd net Proceeds 112,528

5,385,778 Funds Used:

New School Site Development -Copperwood/Legacy Ridge (D-33) 3,461,254Real Estate & Land Development Operations 1,189,069Parks Capital 135,000Allocation in Lieu of Property Taxes 108,900Parks Maintenance 45,000Heart of Our City (N-4) 15,000Affordable Housing 12,352Weed Control 9,000

4,975,575Net Funds Received from Other Activities 410,203

Net decrease in Residential Subdivision Surplus (364,538)

Residential Subdivision Surplus Balance January 1, 2016 13,707,049

Total Residential Subdivision Surplus Balance December 31, 2016 $13,342,511

29

RESIDENTIAL SUBDIVISION SURPLUSFUNDING ANALYSIS



Projects:Crossings:

Phase 2 Underground Utilities and Surface Works $ 377,320Phase 1-7 Development Guidelines 146,470Ph 3 & 4, Caledonia Engineering Consulting 125,070Phase 3 Underground Utilities and Surface Works 81,990Britannia Blvd Extension 71,340Phase 1 Landscape Construction 67,400

869,590RiverStone:

Phase 22 Underground Utilities and Surface Works 352,455Phase 17,21,22 Engineering Consulting Services 193,010Phase 11,17,18,19,21,22 Development Guidelines 177,150Phase 17 Underground Utilities and Surface Works 171,650Phases 9-13 Design & Development Guidelines 61,905Riverstone Third Entrance 53,100Phases 14, 16, 20 Design & Development Guidelines 1,260

1,010,530SunRidge:

Phase 3C, 3D & 3B Design & Development Guidelines 31,605Phase 1-2 Design & Development Guidelines 13,730

45,335Watermark (formerly Waterbridge):

Phase 1 Underground Utilities and Surface Works 491,805Engineering Middle School Sportsfields 166,230Phase 1 Construction Supervision 30,470

688,505Other Projects (2016 and prior):

Affordable Housing (Note 2) 1,370,300Parks Capital 631,525Heart of Our City Housing Incentive Program (N-4) 370,000Chinook Trail Land Purchase - Melcor Land Exchange (Note 3) 222,455Pest Control 49,090

2,643,370CIP Projects (2016-2017):

North Regional Park Development (D-11) 5,400,000Vacant School Site Development (D-36) 1,600,000New School Site Development (D-33) 68,750

7,068,750

Total Committed Funds $ 12,326,080

Notes:1 Internal loan from the Municipal Revenue Stabilization Reserve - to finance the deficit balance in the Residential Subdivision

Surplus Account related to the start up costs associated with the SunRidge and Crossings subdivisions, Council approvedan original "line of credit loan" of up to $8,000,000 from the Municipal Revenue Stabilization Reserve (MRSR) at a ratebased on the City's average short term investment rate. Additionally, Council authorized an additional $13,200,000 for costsassociated with Crossings under By-Law 5410 to bring the total line of credit to $21,200,000. Loan repayments are basedon cashflow availability within the Residential Subdivision Surplus. As at December 31, 2016 there is no balance remainingto be paid from Residential Subdivision Surplus on this overall line of credit.

2 Affordable Housing - as at December 31,2016 - $1,370,300 has been committed to the Affordable Housing Fund.

3 Chinook Trail Land Purchase - as at December 31, 2016 the Melcor Developments Ltd. land exchange contains acommitment from Residential Subdivision Surplus of $222,453 to front end finance the purchase of Chinook Drive Right-of-Way lands (which will be repaid once Chinook Trail commences).

4 Whoop Up Drive - Subdivision Surplus front end financed the construction of Whoop Up Drive for $1,915,041 in 2015.Repayment will be based on cashflow availability within the Offsite Levy account.

30


RevenuesNet Offsite Levies

Gold Canyon Estates $1,802,013Coulee Creek Stage 4 Phase 4A 1,566,210 Riverstone Phase 22 1,193,466 Legacy Ridge Stage 3 Pahse 13 850,584 Crossing Phase 3 779,121 Blackwolf Phase 5 639,288 The Canyons Phase 3 573,066 Copperwood Phase 23 566,724 Blackwolf Phase 4B 553,644 Copperwood Phase 24 535,848 Blackwolf Stage 2 Phase 1 421,592 Rocky Mountain Blvd 146,873 212 Sixmile Ridge 30,627 108 7A Ave S - M Danielson 24,219

Total Net Levies 9,683,275

Other RevenuesDebenture Debt Funded Projects 225,359 General Interest 61,799

Total Other Revenues 287,158

Total Revenues 9,970,433

AllocationsOffsite/Oversize Credits

The Canyons Phase 3 102,264 Blackwolf Phase 4B 54,938 Legacy Ridge Stage 3 Phase 13 46,995 Coulee Creek Stage 4 Phase 4A 34,425 Gold Canyon Estates 34,260 Garry Station Arterial Road Purchase 33,825 Copperwood Phase 24 20,280 Blackwolf Phase 5 15,584

Total Oversize Credits 342,571

Other CostsDebt Payment - ACFA 7,295,650 26th Ave North (Scenic Drive to 28th Street) 516,965 Chinook Trail Land Purchase 300,380 Metis Trail (Walsh to Whoop Up) Stage 1 136,792 Northwest Lethbridge Utility Servicing 117,958 Metis Trail (Whoop Up to Temple) 104,457 Intersection Improvements 103,374 28 Street North (MMDr - 26 Ave North) 85,562 43rd St N (Hwy 3 to 9 Ave N) 59,716 University Drive Extension and Canyon Parkway 17,454 Garry Drive (600 m West of Métis Trail) 2,552 6th Ave S (MMDr to Scenic Dr S) Design (CIP 2011-20 C-21) 1,461 Metis Trail Deep Utilities (Garry Dr to Whoop Up) 454 SE Reservoir (158,975)

8,583,800 Total Allocations 8,926,371

Net Increase in Offsite Account 1,044,062

Add: Offsite Account Balance January 1, 2016 3,875,686

Offsite Account Balance period ended December 31, 2016 4,919,748$

OFFSITE ACCOUNT ANALYSIS

31



Projects (2016 and prior) Funded by Debentures (external borrowings):University Drive (Walsh to Commercial Access) (CIP 2014-23 CO & E0-5) $9,718,000 **Metis Trail (Walsh to Country Meadows) (South Gate Commercial) 2,200,000 Metis Trail (Country Meadows to Tartan Underground) (Water/ Wastewater) 2,080,975 Whoop Up Drive (Coalbanks to Mauretania) (RELD) 1,972,603 West Siphon Screen Relocation (CIP 2014-23 EO-3) 1,655,000 *43rd St N (Hwy 3 to 9 Ave N) (CIP 2011-20 C-17) 25,062

17,651,640

Projects (2016 and prior) Funded by Offsite Levies:Garry Station Storm Trunk Main 500,000 University Drive (Walsh to Commercial Access) (CIP 2014-23 CO-5) 361,000 **North Scenic Dr (Uplands Blvd to 42 Ave N) (CIP 2014-23 CO-10) 200,000 5th Ave N (Stafford Dr to MMDr N) Design (CIP 2014-23 CO-3) 86,000 13 St N (Crowsnest Tr to 26 Ave N) Design (CIP 2014-23 CO-4) 86,000 6th Ave S (MMDr to Scenic Dr S) Design (CIP 2011-20 C-21) 9,580

1,242,580

18,894,220$

* West siphon screen relocation has been delayed to 2018/19** University Drive Walsh to Commercial Access delayed to 2024/25

OFFSITE ACCOUNT ANALYSIS

32

City of Lethbridge Attachment F

Investment Summary As at December 31, 2016

The City of Lethbridge maintains a significant investment portfolio. This investment portfolio consists of reserves, capital funds, Provincial and Federal grants, and operating funds. These funds are invested between the time of their receipt and their use to maximize the opportunity of investment returns to the City of Lethbridge. The timing of these transactions, as well as the size of reserves and the amount of internal financing approved are the main factors influencing the size of the investment portfolio.

Total investment income increased to $4,394,500 in 2016 from $4,311,229 in 2015. While the average portfolio size increased year to date; global investments and average market investment returns decreased during the year resulting in a drop in overall investment income for the City. The City of Lethbridge 2016 average portfolio yield of 1.61% (2015: 1.71%) is higher than the 2015 average Government of Canada 3-Year Benchmark1 yield of 0.60% (2015: 0.54%).

1 Benchmark based on actual mid-market closing yields of selected Canada bond issues that mature approximately in the three-year term. This is a reasonable benchmark for the City of Lethbridge given our average portfolio term and our risk restrictions.

33

City of Lethbridge Attachment F (cont’d)

Investment Summary As at December 31, 2016

The City of Lethbridge’s first investment objective is safety of principal, and accordingly the City invests only in institutions with a minimum credit rating of R1 or A. A Company having an R1 rating is considered high-grade prime credit. Its ability to repay current liabilities as they come due is very high. The R1 rating is further broken down into High (R1H), Middle (R1M) and Low (R1L). The short-term ratings of R1H, R1M, and R1L are roughly equivalent to the long term ratings of AAA, AA, and A respectively. During 2007 the City invested in Asset Backed Commercial Paper (ABCP) with a rating of R1High. A subsequent market disruption led to a restructuring of the original investment. Through that restructuring the City received longer term Master Asset Vehicle 2 (MAV2) notes in exchange for the original ABCP investment. At December 31, 2016, the City owned MAV2 notes in the amount of $5,174,645 Class A-1 (rated AA-Low) and $13,892,767 Class A-2 (rated A-Low). Subsequent to year end, the full face value of $19,067,412 was redeemed and returned to the City of Lethbridge. The redemption resulted in the full recovery of the $3,554,115 valuation allowance, which will be returned to the MRSR in 2017. In accordance with Canadian public sector accounting standards, the recovery of the valuation allowance will be recorded in the City’s 2017 financial statements.

Our current portfolio is diversified among 40 different institutions from the Government and Financial Institution sectors as well as the MAV Class A-1 and A-2 described above.

34

Attachment G

Year EndOriginal Year of Interest Annual Balance Per Year ofPrincipal Borrowing Term Rate Payment 2016 Capita Maturity

(yrs) 96,828 Self Supported

Local ImprovementLane Paving 219,357 2009 10 3.344% 25,989 73,599 2019

Land DevelopmentSherring Industrial Park 4,200,000 2005 15 4.422% 386,028 1,401,150 2020Sherring Industrial Park 1,800,000 2006 15 4.600% 167,446 673,685 2021

Offsite LevyNorthwest Lethbridge Utility Servicing 1,000,000 2012 5 1.603% 208,922 206,437 2017Garry Drive West 1,287,000 2012 5 1.603% 268,883 265,684 2017Mayor Magrath Drive 1,000,000 2012 5 1.603% 208,922 206,437 2017University Drive 1,000,000 2013 5 1.684% 209,378 308,852 2018Metis Trail 1,000,000 2013 5 1.684% 209,378 308,852 2018Metis Trail 1,200,000 2013 5 2.199% 254,751 495,800 2018Northwest Lethbridge Utility Servicing 800,000 2013 5 1.797% 168,013 328,611 2018Metis Trail Deep Utilities 1,040,000 2013 5 1.797% 218,417 427,195 2018University Drive 800,000 2013 5 1.797% 168,013 328,611 2018University Drive 700,000 2014 5 1.719% 146,703 427,167 2019Metis Trail Deep Utilities 222,500 2015 5 1.213% 45,998 157,157 202026th Ave North 500,000 2015 5 1.339% 103,719 353,487 202028th Street North 600,000 2015 5 1.339% 124,463 424,185 202028th Street North 2,100,000 2015 5 1.124% 433,091 1,689,362 202043rd Street North 1,200,000 2015 5 1.124% 247,481 965,350 2020South East Water Reservoir 3,000,000 2006 15 4.584% 278,775 1,233,145 2021South Siphon Upgrade 1,500,000 2011 10 2.485% 170,334 796,248 2021Mayor Magrath Drive 624,000 2016 5 1.238% 129,088 563,318 2021SE Regional Lift Station 156,100 2016 5 1.238% 32,293 140,920 202143rd Street North 325,000 2016 5 1.597% 67,889 325,000 2021Garry Drive West 150,554 2016 5 1.597% 31,449 150,554 2021South East Water Reservoir 1,000,000 2007 15 4.614% 93,113 483,196 2022South Siphon Upgrade 500,000 2012 10 2.226% 56,048 313,171 2022South Siphon Upgrade 1,000,000 2010 15 3.885% 88,595 667,482 2025West Lethbridge Water Reservoir 2,300,000 2010 15 3.885% 203,769 1,535,209 2025Garry Drive Reservoir 5,700,000 2011 15 3.013% 475,124 4,076,006 2026SE Regional Lift Station 3,600,000 2014 15 2.814% 295,865 3,202,589 2029Northwest Lethbridge Utility Servicing 1,000,000 2010 20 4.124% 73,909 780,156 2030Metis Trail 1,800,000 2015 15 2.569% 145,362 1,649,402 2030Metis Trail 2,800,000 2015 15 2.459% 224,337 2,643,560 2030Metis Trail Deep Utilities 2,000,000 2015 15 2.569% 161,513 1,832,669 2030Metis Trail Deep Utilities 2,200,000 2015 15 2.459% 176,264 2,077,083 2030Northwest Lethbridge Utility Servicing 600,000 2011 20 3.292% 41,190 484,514 2031Northwest Lethbridge Utility Servicing 15,000,000 2011 20 3.145% 1,016,133 12,077,167 2031Northwest Lethbridge Utility Servicing 2,900,000 2012 20 2.922% 192,500 2,385,745 2032

Total Self Supported 7,549,145 46,458,755 479.81

Taxation SupportedGeneral

ATB Centre - Phase 2 (Leisure Complex) 12,000,000 2016 15 2.798% 985,091 12,000,000 2031Total Taxation Supported 985,091 12,000,000 123.93

Utility SupportedWater

Water Treatment Plant Upgrading 1,150,000 2002 15 6.125% 119,376 112,486 2017South East Water Reservoir 1,000,000 2005 15 4.422% 91,911 333,607 2020South East Water Reservoir 3,250,000 2006 15 4.267% 295,579 1,318,307 2021Public Operations Site 1,500,000 2012 15 2.627% 121,640 1,155,534 2027Public Operations Site 1,250,000 2013 15 2.959% 103,796 1,005,533 2028Public Operations Site 500,000 2013 15 3.586% 43,389 420,116 2028Public Operations Site 1,000,000 2013 15 3.295% 85,030 837,182 2028Public Operations Site 550,000 2015 15 2.235% 43,358 502,879 2030Public Operations Site 1,071,500 2016 15 2.351% 85,182 1,041,504 2031Water Reservoir Upgrades 800,000 2016 15 2.151% 62,683 800,000 2031Water Reservoir Upgrades 500,000 2016 15 2.798% 41,045 500,000 2031

1,092,989 8,027,148 82.90 Wastewater

Headworks Facility 500,000 2007 10 4.493% 62,620 60,571 2017Lagoon Upgrade 500,000 2009 10 3.344% 59,238 167,761 2019Sewer Relief 1,350,000 2006 15 4.584% 125,449 554,915 2021Public Operations Site 1,500,000 2012 10 2.177% 167,731 938,657 2022Plant Outfall Twinning 782,000 2008 15 4.565% 70,965 421,142 2023Public Operations Site 1,250,000 2013 10 2.499% 142,042 847,329 2023Public Operations Site 500,000 2013 10 3.079% 58,473 365,690 2023Public Operations Site 1,450,000 2015 10 1.779% 158,922 1,248,528 2025WWTP Headworks & Clarifier 500,000 2011 15 3.013% 41,678 357,544 2026Public Operations Site 1,071,500 2016 10 1.860% 117,920 1,022,505 2026WWTP Headworks & Clarifier 500,000 2016 10 1.782% 54,809 500,000 2026

1,059,847 6,484,643 66.97

City of LethbridgeExternal Borrowings (ACFA)

As At December 31, 2016

35

Attachment G (cont'd)


96,828 Utility Supported (Continued)

Waste & RecyclingLandfill Cell Development 3,500,000 2012 5 1.603% 731,227 722,529 2017Automated Collection - Carts 600,000 2009 10 3.344% 71,086 201,313 2019Landfill Surface Water Management 430,000 2010 10 3.377% 51,027 189,434 2020Landfill Royalty Buyout 6,250,000 2003 20 5.813% 664,621 3,735,022 2023Landfill Construction & 28 St N 2,300,000 2003 20 5.625% 194,463 1,100,188 2023Landfill Approval Compliance 2,100,000 2008 15 4.565% 194,892 1,156,587 2023Landfill Approval Compliance 900,000 2009 15 3.973% 80,221 545,190 2024Recycling Depot 1,000,000 2016 15 2.798% 82,091 1,000,000 2031

2,069,628 8,650,262 89.34 Electric

Secondary Metering (AMI) 4,000,000 2015 5 1.088% 824,131 3,217,266 2020Secondary Metering (AMI) 990,000 2016 5 1.597% 206,799 990,000 2021Electric Infrastructure Replacement 2,000,000 2011 15 3.013% 166,710 1,430,178 2026Electric Infrastructure Replacement 3,000,000 2012 15 2.627% 243,280 2,311,067 2027Electric Infrastructure Replacement 4,000,000 2015 15 2.385% 318,775 3,775,293 2030Northwest Substation 4,500,000 2015 15 2.459% 360,541 4,248,578 2030Northwest Substation 4,400,000 2016 15 2.351% 349,792 4,276,826 2031Northwest Substation 1,200,000 2016 15 2.151% 94,025 1,200,000 2031Electric Infrastructure Replacement 5,500,000 2016 15 2.351% 437,240 5,346,032 2031Electric Infrastructure Replacement 1,110,000 2016 15 2.798% 91,121 1,110,000 2031

3,092,414 27,905,240 288.19

Total Utility Supported 7,314,878 51,067,293 527.40

Total External Borrowings December 31, 2016 15,849,114$ 109,526,049$ 1,131.14$


Taxation Supported (yrs) 96,828 General

ENMAX Expansion 5,392,000 2010 15 3.488% 467,761 3,892,540 2026Parks Asset Management 1,666,000 2012 15 2.599% 135,539 1,282,408 2027Parks Asset Management 833,000 2014 15 2.814% 68,842 740,919 2029ATB Centre - Phase 1 (Ice Complex) 2,904,000 2014 15 2.814% 239,997 2,637,681 2029Lethbridge Police Headquarters 13,125,000 2014 15 2.814% 1,084,698 12,409,639 2029ATB Centre - Phase 1 (Ice Complex) 240,000 2016 15 2.151% 18,890 240,000 2031Lethbridge Police Headquarters 1,276,000 2016 15 2.151% 100,431 1,276,000 2031Police Technology line of credit float 430,200 - n/a

Total General 2,546,358 22,479,188 232.16 Self Supported

Local Improvement2007 Lane Paving 404,183 2007 10 4.493% 51,061 48,866 20172008 Lane Paving 188,042 2008 10 4.118% 23,320 43,910 20182008 Lane Paving 17 St 112,002 2008 10 4.118% 13,890 26,154 20182010 Lane Paving 288,670 2010 10 3.213% 34,210 126,516 20202011 Lane Paving 107,064 2011 10 2.485% 12,224 56,813 20212012 Lane Paving 89,408 2012 10 2.226% 10,072 55,987 2022

Land DevelopmentSherring Industrial Park 6,000,000 2005 15 4.422% 555,691 1,997,199 2020Sherring Industrial Park 5,500,000 2007 n/a float n/a 5,500,000 n/a

School Bus * 2008 School Bus Purchases 449,665 2008 15 5.138% 18,365 105,572 2023* 2010 School Bus Purchases 797,590 2010 15 3.488% 29,061 220,990 2024

Total Self-Supported 747,894 8,182,008 84.50

Total Internal Borrowings December 31, 2016 3,294,252$ 30,661,196$ 316.66$

Funding from:* Fleet Reserve 326,562$

Municipal Revenue Stabilization Reserve 30,334,634 30,661,196$

Internal BorrowingsCity of Lethbridge


City of LethbridgeExternal Borrowings (ACFA) Continued


36

Attachment H

2012 2013 2014 2015 2016

Opening Balance 933,057$ 863,317$ 1,073,317$ 1,282,967$ 1,472,157$

Funding Approved in Operating Budget 150,000 150,000 150,000 150,000 150,000

1,083,057 1,013,317 1,223,317 1,432,967 1,622,157

AllocationsLot Sales From Above Development (Temple Blvd/Metis Trail) (60,000) (60,000) (60,000) (60,000) - Electrical Rebate - Temple Blvd (24,000) - - - - Temple Blvd Expenses 9,855 - - - - Castle Apartments (6,115) - 350 350 - L'Arche Housing Project - 535 19 St S 300,000 - - - - Upgrading Existing Secondary Suites - - - 20,460 42,351

Total Capital Allocated 219,740 (60,000) (59,650) (39,190) 42,351

Closing Balance (Note 1) 863,317$ 1,073,317$ 1,282,967$ 1,472,157$ 1,579,806$

2012 2013 2014 2015 2016

Opening Balance 2,846,641$ 4,232,680$ 1,580,948$ 1,532,177$ 1,453,624$

Provincial GrantsAffordable Housing - Municipal Block Funding (Note 2) 1,340,251 - - - - Trust Interest (Note 3) 62,255 44,970 28,896 26,737 24,221

4,249,147 4,277,650 1,609,844 1,558,913 1,477,844

AllocationsUpgrading Existing Secondary Suites 16,467 41,624 37,237 21,665 - University of Lethbridge Campus Student Housing - 2,000,000 - - - Lethbridge Housing Authority - Temple Blvd - 655,078 - - - Rent Supplement Program (Secure First Program) - - 40,430 83,625 71,118

Total Capital Allocated 16,467 2,696,702 77,667 105,290 71,118

Total Capital Proposed & Approved 16,467 2,696,702 77,667 105,290 71,118

Closing Balance 4,232,680$ 1,580,948$ 1,532,177$ 1,453,624$ 1,406,726$

Funds Committed for FutureSupportive Housing for Men 767,681 London Road Project 713,125 Rent Supplement Program 4,827 Total Committed Funds 1,485,633$

Affordable Housing Fund

Affordable Housing ProgramFunded by Provincial Grants

Note 2: As at December 31, 2016, the City of Lethbridge has $335,062.80 remaining to be received from the Provincial Government Affordable Housing Program - Municipal Block Funding Grant. These funds will be received once the full grant eligibility requirements are met. The grant term ends on January 15, 2020.Note 3: Interest on the trust accounts will continue to be accrued until all allocations are complete and will be allocated to Affordable Programs at a later date.

Note 1: As at December 31, 2016, $1,370,300 of the 2016 closing balance remains in Residential Subdivision Surplus. Based on the Affordable Housing Committee submission to City Council on October 15, 2013, the annual contribution from Residential Subdivision Surplus will be used to fund the Affordable Housing Capital Project Grant.

37

Attachment H (cont'd)

2012 2013 2014 2015 2016

Opening Balance 584,488$ 418,920$ 349,485$ 239,106$ 183,533$

Funding Approved in Operating Budget 465,000 465,000 465,000 490,000 490,000

1,049,488 883,920 814,485 729,106 673,533

Allocations

Governance and Administration 125,744 122,834 131,363 139,601 137,201 Design, Planning and Regulatory Processes 12,374 - - - 22,720 Championing, Marketing and Promotion 44,969 45,224 37,449 15,000 10,000 Downtown Life (Events) 70,199 60,077 70,007 81,575 97,856 Enhancement Works 53,817 13,571 8,591 87,107 105,939 Functional Works Maintenance and Upkeep 323,465 292,729 327,969 222,291 261,055

Total Allocated 630,568 534,435 575,379 545,574 634,772

Closing Balance (Note 1) 418,920$ 349,485$ 239,106$ 183,533$ 38,762$

Heart of Our City Committee(Downtown Redevelopment Fund)

Note 1: Funds remaining at the close of 2016 are committed to ongoing projects and programs to be delivered in 2017 based on the 2015-2018 approved operating budget.

38

Attachment I

2012 2013 2014 2015 2016

Opening Balance 1,096,619$ 1,437,052$ 1,455,090$ 1,563,611$ 1,698,635$

GST Rebates 1,168,789 1,154,487 1,090,767 1,029,808 1,168,873

2,265,408 2,591,539 2,545,857 2,593,420 2,867,508

AllocationsCommunity Capital Grant Program 450,000 450,000 450,000 450,000 450,000 Community Capital Grant Program - one time allocation - - - - 64,888 Capital Asset Plan & Register 128,356 141,842 152,175 161,300 161,300 Strategic Building Asset Management 250,000 250,000 250,000 250,000 250,000 Capital Asset Management Maintenance Fees - 18,733 19,593 20,193 20,593 SLP Skate Park (CIP 2014-2023 D-41) - 275,874 110,478 13,292 -

Total Capital Allocated 828,356 1,136,449 982,246 894,784 946,780

Closing Balance 1,437,052$ 1,455,090$ 1,563,611$ 1,698,635 1,920,728

GST Rebates

39

Attachment J

Contingency Included in 2015-2018 Budget 500,000$

Allocated by City Council:Diversion Outreach Team (110,000)

390,000$

Corporate Budget Contingency - 2016

40

Attachment K

41

Attachment K (cont'd)

42


43


44

Attachment L

Capital Improvement Program Summary 2014 - 2023

Section C: Infrastructure Transportation Projects

Projects in progress during 2016

PROJECTCIP

PAGE BUDGETEXPENDITURES

(TO DEC. 31, 2016)

BUDGETREMAINING COMMENTS

Intersection Improvements - Non-Growth * C-5 $ 2,632,000 $ 912,654 $ 1,719,346Completed four intersection upgrades.Additional intersections as warranted by trafficcounts, will be upgraded.

Bikeways/Pathways/Sidewalks AlongRoadways *

C-6 $ 2,746,000 $ 440,687 $ 2,305,313

Work under this program currently includes theBikeways Master Plan study and five bikewaysas identified in the 2014 Commuter Bikewaysstudy.

Gravelled Roadway Upgrading C-7 $ 2,040,000 $ 1,808,346 $ 231,654

Completed upgrade of Whoop Up Drive from30th Street to City Limits (2014) and upgradeof 43rd Street North from the SMRID canal toNorth City Limits (2016).

Barrier Free Pedestrian Access * C-8 $ 908,000 $ 1,099,879 $ (191,879)

Successful construction and rehabilitation ofwheelchair accessible ramps in the downtownand residential neighbourhoods. This programis expected to be within the four year approvedbudget.

Arterial Rehabilitation Program * C-9 $ 4,758,000 $ 5,105,129 $ (347,129)

Major roadways completed during 2016 include5th Ave North between Stafford Drive andScenic Dr. North, portions of Stafford Drive. This program is expected to be within the fouryear approved budget.

Bridge Rehabilitation Program * C-10 $ 3,394,250 $ 691,261 $ 2,702,989

Successful repair of Bridge #21 (Stafford Driveover CP Rail); Bridge 23 (University Dr. /Whoop Up Dr.) ; Bridge 31P (17 St. /Crowsnest Trail) ; and Bridges 30 and 33P(pedestrian underpasses) in 2015. Bridge #1(Eastbound Whoop-Up Dr over the OldmanRiver) has been delayed until 2018.

Railway Rehabilitation Program * C-11 $ 1,761,200 $ 2,101,304 $ (340,104)Additional work was done in 2015. Thisprogram is expected to be within the four yearapproved budget.

45

Attachment L


Section C: Infrastructure Transportation Projects


PROJECTCIP


(TO DEC. 31, 2016)


Traffic Signal Replacement * C-12 $ 1,419,600 $ 362,062 $ 1,057,538Program to upgrade the City's many trafficsignal devices is progressing well.

Major Sidewalk Rehabilitation Program * C-13 $ 694,000 $ 514,279 $ 179,721

Program progressing well within budget. Futureblock long sections of sidewalk will be replacedaccording to results from sidewalk conditionassessment survey.

Paved Lane Rehabilitation Program * C-14 $ 889,000 $ 134,350 $ 754,650

One lane fully rehabilitated in 2015. Additionallanes will be rehabilitated based upon conditionassessment with selected lanes beingcompleted by the end of 2018.

Community Lighting - Rehabilitation * C-15 $ 474,000 $ 211,699 $ 262,301 Program is progressing on budget.

Preliminary Design for Whoop Up DrInterchange Improvements

C-16 $ 500,000 $ 39,448 $ 460,552Consultant was hired in 2016 and the study isexpected to be completed by the end of 2017.

Intersection Improvements - Growth * CO-1 $ 1,158,000 $ 1,218,681 $ (60,681)

Intersection of Mayor Magrath Drive andScenic/24th Ave. S as well as Scenic Drive andStafford Drive North intersections wereupgraded in 2015. Future projects are delayeduntil offsite levy funding is available.

Whoop Up Drive (McMaster to MauretaniaBlvd W)

CO-6 $ 11,600,000 $ 293,671 $ 11,306,329Detailed design has been completed. Projecthas been awarded and construction is plannedto start in spring of 2017.

Metis Trail (Walsh to Whoop Up) CO-7 $ 16,778,000 $ 5,348,317 $ 11,429,683

Detailed designed is substantially complete.Project is scheduled to award constructionservices in the spring of 2017 with constructionbeginning shortly thereafter.

North Scenic Drive (Uplands Blvd N to 42Ave N)

CO-10 $ 200,000 $ 19,496 $ 180,504Preliminary design started in 2016 and isexpected to be completed by end of 2017.

Total $ 51,952,050 $ 20,301,263 $ 31,650,787

*Note 1: Projects are considered to be annual programs and include budget up to 2016. All other projects includes budget up to 2017.

46

Attachment L (cont'd)


Section D: Community Projects


PROJECTCIP


(TO DEC. 31, 2016)


Parks Asset Management D-5 $ 10,180,000 $ 8,948,377 $ 1,231,623Program is progressing within project scopeand budget.

Lethbridge Police HQ Expansion D-6 $ 27,920,000 $ 26,589,708 $ 1,330,292Project is 96% complete. Substantialcompletion will be achieved in March 2017 withdeficiencies to be addressed after completion.

ATB Centre-Phase 1 (Ice Complex) D-7 $ 41,351,000 $ 39,533,964 $ 1,817,036

Opened to the general public on September16, 2016, all outstanding deficiencies havebeen completed. One year warranty period willbe over March 1, 2017. Any surplus from thisproject will be tranferred to the ATB CentrePhase 2 project.

Southern Alberta Ethnic Assoc Facility D-8 $ 4,300,000 $ 4,083,282 $ 216

Department: Financial Services Chair Liz Iwaskiw and...Department: Financial ServicesMarch 20, 2017 Chair Liz Iwaskiw and Members of Finance Committee Re: Unaudited 2016 Year End Financial

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