Madoc Drinking Water System Financial Plan #153-301
Centre Hastings, Ontario
· adopted 2026-02-18
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Municipality of Centre Hastings
Drinking Water System Financial Plan
Financial Plan # 153-301
Per Ontario Regulation 453/07 under the Safe
Drinking Water Act, 2002
Authored by: The Municipality of Centre Hastings
Prepared by: Cameron Sills, BBA, Junior Financial Analyst
Reviewed by: Alexander Kelly, CPA, Director of Finance/Deputy CAO
Peer Reviewed by: Hemson Consulting Ltd.
The Plan will be published on the Municipality's website and submitted to the Ministry of
Municipal Affairs and Housing as required by the legislation. Hardcopies are available to
the public during regular business hours upon request at no charge.
February 18, 2026
2
Table of Contents
1. Introduction ............................................................................................................... 3
2. Background ............................................................................................................... 4
Statement of Operations .......................................................................................... 4
Statement of Financial Position ................................................................................ 4
Statement of Cash Flows ......................................................................................... 5
Statement of Change in Net Financial Assets (Debt) ............................................... 5
Overview of Results ................................................................................................. 5
3. Key Inputs .................................................................................................................. 6
Operating Expenditure Forecast .............................................................................. 6
Capital Expenditure Forecast ................................................................................... 6
Reserve Statements ................................................................................................. 7
Tangible Capital Asset Analysis (TCA) ..................................................................... 8
Projection of Water Rates ........................................................................................ 9
4. Drinking Water Financial Plan .................................................................................. 9
Statement of Operations - Table 1 ........................................................................... 9
Statement of Financial Position - Table 2 .............................................................. 11
Statement of Cash Flow - Table 3 ......................................................................... 11
Statement of Change in Net Financial Assets (Debt) - Table 4 .............................. 12
5. Notes and Assumptions ......................................................................................... 18
Cash and Reserves ................................................................................................ 18
Lead Pipes ............................................................................................................. 18
Debt and Financing Assumptions ........................................................................... 18
Deferred Revenue .................................................................................................. 18
Appendix A .................................................................................................................. 19
Supporting Tables ...................................................................................................... 19
3
1. Introduction
The Municipality of Centre Hastings provides water services to residents and
businesses through its municipal water distribution system serving the Village of Madoc.
The system currently serves 697 connections. The fee structure for drinking water
consists of a bi-monthly fixed base charge, which includes a specified volume of water
based on meter size, and a volumetric overage charge applied per cubic metre of
consumption exceeding the included specified amount. The Municipality recovers the
costs associated with operating, maintaining, and renewing its water systems, primarily
through user rates based on the principle of full cost recovery.
The drinking water system (DWS) primarily consists of the following:
-
Rollins Street Well, including associated treatment and disinfection
infrastructure/equipment;
-
Marmora Street Well, including associated treatment and disinfection
infrastructure/equipment;
-
Water Distribution System including watermains, valves, hydrants and service
connections; and
-
One elevated storage tank.
The Municipality of Centre Hastings last completed a Drinking Water Financial Plan in
2021 to satisfy the requirements for municipal drinking water licence renewal. Since that
time, updated planning information has become available, including the Madoc Water,
Wastewater and Stormwater Master Plan completed in 2024 by J.L. Richards &
Associates Limited (JLR), along with updated historical operating data and 2026
budgeted expenditures and revenues. These inputs have been used to inform the
preparation of the current Drinking Water Financial Plan.
The purpose of this document is to present a Drinking Water Financial Plan for the
Municipality of Centre Hastings that applies to the entire municipal drinking water
system and supports the ongoing operation and long-term sustainability of the system.
The Financial Plan has been prepared to support the renewal of the Municipality's
Drinking Water Licence (#153-101) in accordance with the Safe Drinking Water Act
(SDWA) and associated regulation, Ontario Regulation 453/07.
This financial plan is prepared using a 9-year forecast period from 2026-2034 (the
"planning period") with 2026 being the first year of the forecast. The plan supports the
fact that the water system is financially sustainable over the planning period and
includes a detailed analysis of operating and capital needs, as well as available funding
4
sources. This Financial Plan was developed by the Municipality of Centre Hastings staff
and peer reviewed by Hemson Consulting Ltd.
2. Background
Under the Safe Drinking Water Act, 2002 (SDWA) and Ontario Regulation 453/07
(Financial Plans), municipalities that own and operate a drinking water system are
required to prepare and maintain a Drinking Water Financial Plan as a condition of
obtaining and renewing a Municipal Drinking Water Licence. The regulation establishes
specific requirements related to the preparation, approval, content, and public
disclosure of these plans.
The general requirements for a financial plan under the SDWA include the following:
-
A minimum planning horizon of six years; for licence renewals, the plan must be
completed in the first year of licence expiry;
-
Approval by Council resolution, confirming that the drinking water system is
financially viable over the planning period; and
-
The requirement that the financial plan be made available to the public upon
request at no charge.
In addition to the general requirements outlined above, Ontario Regulation 453/07
requires that a financial plan include several financial statements. These include:
Statement of Operations
This statement itemizes total revenues, total expenses, annual surplus or deficit, and
the accumulated surplus or deficit for each year to which the Financial Plan applies. An
annual surplus represents funds available to the Municipality to support non-operating
requirements, including the acquisition of tangible capital assets, principal repayments
on debt, and transfers to maintain or increase reserve balances. The Statement of
Operations is discussed in greater detail later in this report and is included as Table 1.
Statement of Financial Position
This statement provides information on the financial position of the Municipality's
drinking water system, including total financial assets, total liabilities, net financial
assets or net financial debt, non-financial assets, and tangible capital assets. The
inclusion of tangible capital assets reflects the Municipality's ability to provide future
service benefits through its existing infrastructure. A net financial asset position
indicates that the water system has sufficient financial resources to support future
operations, while a net financial debt position indicates that future revenues will be
5
required to settle existing obligations. The Statement of Financial Position is discussed
in detail later in this report and is included as Table 2.
Statement of Cash Flows
This statement provides information on the generation, and use of cash resources
related to the drinking water system. Cash receipts and payments are categorized by
operating, capital, investing, and financing activities, allowing for an understanding of
how cash is generated (such as through water rates) and how it is applied (such as to
operating costs, capital expenditures, and debt servicing). The Statement of Cash Flows
is discussed in detail later in this report and is included as Table 3.
Statement of Change in Net Financial Assets (Debt)
Although the Statement of Net Financial Assets (Debt) is not a mandatory requirement
under Ontario Regulation 453/07, it provides additional insight into the financial
performance and sustainability of the Municipality's drinking water system. This
statement indicates whether revenues generated during the period are sufficient to fund
operating expenses and tangible capital asset costs. It also reconciles the difference
between the annual surplus or deficit and the change in net financial assets or debt for
the period. The Statement of Net Financial Assets (Debt) is included as Table 4.
The remainder of this report presents the information and analysis used to prepare the
Drinking Water Financial Plan in accordance with the requirements of the SDWA and
Ontario Regulation 453/07.
Overview of Results
In developing this Drinking Water Financial Plan, the Municipality recognizes that the
plan is a living document and is expected to be reviewed and updated as new
information becomes available and as operating, capital, or regulatory requirements
evolve. The implementation of this Financial Plan is also reliant on the approval of
updated water user rates through the municipal rate-setting process. Water services are
fully user-rate funded, and do not rely on municipal tax levy revenues. Based on a
review of the current financial information and reporting requirements, the Municipality's
drinking water system is financially sustainable over the planning period as long as rate
increases as projected in the rate study are implemented; however, several key factors
identified in this report should be carefully monitored and considered in future updates
to ensure ongoing financial viability.
6
3. Key Inputs
Operating Expenditure Forecast
The operating expenditure forecast for the water system is based on the Municipality's
2026 Operating Budget and the Madoc Water, Wastewater and Stormwater Master
Plan. The forecast covers the period to 2034 and includes projected operating
expenditures, planned capital-related costs, and annual contributions to reserves to
support the future repair and replacement of assets in the water system. A summary of
the forecasted revenues and expenditures is provided in Appendix A - Table 1.
Operating expenditures and non-rate revenue projections are based on the following
key assumptions:
-
Wages and benefits are assumed to increase at an annual rate of 3%, reflecting
anticipated labour cost growth including related statutory/mandatory employer
related costs.
-
Utility costs, including hydro and fuel, are forecast to increase at an annual rate
of 5%, consistent with historical trends and expected market conditions.
-
All other operating costs are assumed to increase by 2% annually to account for
inflation.
-
Non-rate revenues are forecast to increase by 2% annually, reflecting modest
growth and inflationary adjustments.
These assumptions are considered reasonable and reflect current budgetary
information and long-term planning inputs available at the time of preparation of this
Financial Plan. These assumptions are also consistent with the water and wastewater
rate study completed in conjunction with this Financial Plan.
Capital Expenditure Forecast
The capital expenditure forecast summarizes the cumulative cost of planned in-year
capital projects over the planning period and identifies the associated annual funding
sources. Based on current information, the Financial Plan identifies approximately $9
million in non-growth-related capital infrastructure expenditures over the 2026 to 2034
period. The Municipality will continue to monitor the condition of its existing capital
assets and assess emerging infrastructure needs; as a result, non-growth-related
capital investment requirements may change over time as additional information
becomes available.
Growth-related capital expenditures over the planning period are estimated at
approximately $568,000 and are expected to be funded through development charges.
7
These expenditures represent the growth-related portion of the standpipe project
scheduled for construction in 2026. Due to the timing of development charge
collections, this portion of capital expenditures is assumed to be initially financed
through external debenture financing, with associated debt servicing costs funded
through user rates in the short term. As development charge revenues are collected,
these funds are expected to be used to repay the related debt and replenish the water
reserve.
In addition, external debenture financing will also be required to fund the non-growth-
related components of the capital expenditures, in order to support system capacity,
reliability, and long-term service delivery. Capital expenditures included in this Financial
Plan are:
-
Replacement of the elevated storage tank and construction of a water standpipe,
scheduled to begin in 2026.
-
Installation of a new potable water source/well, planned for 2028.
-
Replacement of water mains on Prince Albert Street West and Madawaska Steet,
planned for 2030.
A summary of capital expenditures and funding sources is provided in Appendix A -
Table 2.
Reserve Statements
Water Reserves
The Municipality will continue to make annual contributions to the Water Reserve to
support non-growth-related capital projects and to mitigate potential revenue shortfalls
that may arise from fluctuations in user fee revenues. The Municipality's objective is to
maintain a minimum Water Reserve balance equivalent to 2% of the current
replacement value (CRV) of water assets and a minimum of three months of operating
expenditures. Immediate implementation of these reserve contributions would largely
impact rate payers, but the Municipality expects to gradually meet these goals over the
planning period. A summary of the projected transfers to and from reserves is included
in Appendix A - Table 3.
Development Charge Reserve Fund
The Development Charge Reserve Fund is intended to finance growth-related capital
projects identified in the Municipality's Development Charge Background Study. The
standpipe, anticipated to be completed in 2026, is the only planned growth-related
capital project included within the planning period. Due to insufficient development
charge balances at the time of construction, the Municipality will issue a debenture to
8
fund this portion of the project, with repayment to be supported by future development
charge revenues.
Tangible Capital Asset Analysis (TCA)
The analysis of tangible capital assets for the water system was developed using
information from the Municipality's asset management software, which integrates asset
inventory, condition, and lifecycle data, along with the Municipality's Asset Management
Plan (AMP 2025). These sources were used to project asset values, amortization, and
anticipated changes over the planning period. The financial information presented is
unaudited and is based on estimates and assumptions considered reasonable at the
time of preparation.
The following key assumptions were applied in the development of the tangible capital
asset projections:
-
Amortization expense is based on the Municipality's 2024 amortization values as
calculated within the asset management software and is assumed to remain
relatively stable over the planning period, reflecting the existing asset base and
expected asset lives.
-
It is assumed that no write-off of assets occur in any of the years.
-
Any asset disposals and their related accounting gain or loss on disposal is not
considered to occur in any of the years.
These assumptions support a reasonable projection of the Municipality's water system
asset base for the purposes of long-term financial planning. Appendix A - Table 5
summarizes the Tangible Capital Asset schedule.
9
Projection of Water Rates
Overall, the water rates are projected to increase throughout the planning period to
ensure long-term fiscal sustainability of services. The table below provides an overview
of the water rates required for 2026-2030 based on projections within the corresponding
Water and Wastewater Rate Study.
The proposed water rates are recommended to increase by 15% in 2026 to recover
expected expenditures and provide adequate reserve contributions to support planned
projects. Additional details surrounding the rate analysis is described in more detail in
the 2026 Water and Wastewater Rate Study. Note, the utility rates are subject to Council
approval.
4. Drinking Water Financial Plan
This section summarizes the complete Financial Plan for the Municipality of Centre
Hastings water system. The Financial Plan represents a forecast of the Municipality's
future financial position. The information presented is unaudited and is based on
estimates and assumptions derived from the best available data at the time of
preparation.
Statement of Operations - Table 1
The Statement of Operations presents the revenues and expenses associated with the
water system for each year of the planning period. An annual surplus occurs when
revenues exceed expenses, while an annual deficit results when expenses exceed
revenues. Any annual surplus may be applied to fund non-operating requirements,
including the acquisition of tangible capital assets, principal repayments on debt, and
transfers to maintain or increase the water reserve.
2026
2027
2028
2029
2030
5/8"
24
116.56
128.22
137.84
144.74
151.98
3/4" Single Residential Unit
24
116.56
128.22
137.84
144.74
151.98
3/4"
48
233.12
256.42
275.66
289.44
303.92
1"
96
466.23
512.86
551.32
578.88
607.82
1 1/4"
144
699.35
769.28
826.98
868.32
911.74
1 1/2"
192
932.47
1,025.72
1,102.64
1,157.78
1,215.66
2"
432
2,098.06
2,307.86
2,480.94
2,604.98
2,735.22
3"
0
3,361.96
3,698.16
3,975.52
4,174.30
4,383.02
4"
0
3,735.51
4,109.06
4,417.24
4,638.10
4,870.00
6"
0
5,416.48
5,958.12
6,404.98
6,725.22
7,061.48
8"
0
7,097.46
7,807.20
8,392.74
8,812.38
9,253.00
10"
0
9,322.69
10,254.96
11,024.08
11,575.28
12,154.04
Volumetric/Overage Charge (2" and less)
0.97
1.06
1.14
1.20
1.26
Volumetric/Overage Charge (Greater than 2")
2.90
3.19
3.43
3.60
3.78
Bi-Monthly Water Rates
Meter Size
Cubic Meters Included
in Base Charge
10
In 2026, total revenue from water operations is projected at $5.6 million, including $4.8
million in provincial grant funding for the standpipe project. Total expenditures are
forecast at $860,000 and does not include capital expenditures. In 2026 a projected
surplus of $4.7 million is expected, largely driven by the provincial funding for the water
standpipe project, while the expenses related to the project do not reflect on the
statement of operations in whole but instead are amortized over their useful life in
accordance with Public Sector Accounting Standards.
In 2027 and beyond the statement of operations reflects an annual deficit, which is
largely driven by amortization of capital assets in those years. Amortization is a non-
cash accounting expense that reflects the annual consumption of existing water
infrastructure assets and does not represent a current-year cash outlay. As a result, the
reported deficit does not indicate a cash shortfall in water system operations.
The opening accumulated surplus of approximately $5.3 million represents the net
financial position of the water system and is comprised of reserve balances and the net
book value of tangible capital assets, net of outstanding debt and deferred revenue
obligations. A reconciliation of the accumulated surplus is provided in Table 5.
Based on the projected Statement of Operations, the water system's annual deficit is
expect to continuously decrease after 2029. In the initial years of the plan, wastewater
surpluses will continue to support wastewater operations; however, this subsidization
will be fully phased out by 2030. At that point, both the water and wastewater systems
fund their operations independently. This trend indicates improving long-term financial
sustainability while continuing to account for the full cost of asset ownership.
The improving position can also be attributed to the DC revenues coming online to help
support the system financial requirements - should growth occur in a more timely
manner and DCs become available, those funds can help expedite the payback and
improve the sustainability of the system.
Lastly, the existing rate structure has generated wastewater revenues in excess of
wastewater system requirements which ultimately resulted in a transfer of funds to the
water system (essentially a cross-subsidization of revenues). To improve rate stability
and ensure that each system is financially self-sustaining independent of one another, a
forecast has been developed to gradually reduce the reliance on wastewater revenues
to fund water operations. From 2026 to 2028, this reliance will be gradually reduced so
that both services operate independently on a fully self-supporting basis. This
movement to self dependency is also placing some short-term financial restrictions on
the system.
11
Statement of Financial Position - Table 2
The Statement of Financial Position presents information on the assets and liabilities of
the Municipality's water system. Net financial assets (or net financial debt) represent the
difference between total assets and total liabilities. A net financial asset position exists
when assets exceed liabilities, while a net financial debt position arises when liabilities
exceed assets. A net financial asset position indicates that the system has sufficient
financial resources to support future operations. In contrast, a net financial debt position
signifies that additional future revenues will be required to settle obligations arising from
past transactions.
Financial assets included in the Statement of Financial Position consist of the net
balances of the water reserve and the development charge reserve. Liabilities include
both growth-related and non-growth-related debentures required to finance the
standpipe project planned for 2026 and new potable water source in 2028. Deferred
revenue represents development charges that have been collected but remain a liability
until they are applied to eligible growth-related capital expenditures. Of note, growth
funded infrastructure is typically emplaced to service development over a longer time
period than the planning horizon used in this water financial plan, therefore, the DC
reserves are impacted until the growth materializes to pay for the supporting
infrastructure. Collectively, the reserves (growth and non-growth) remain positive
through the period.
Statement of Cash Flow - Table 3
The Statement of Cash Flows provides information on the sources and uses of cash
resources, classified into operating, capital, investment, and financing activities.
The statement describes how the cash from operations ($4.8 million) will be used to
support 2026 capital transactions ($6.6 million) and financing transactions ($1.8 million).
The Municipality's net cash position is expected to decrease from $270,000 in 2026 to
$141,000 at the end of 2034. As indicated in Table 2, the decrease is largely attributable
to major capital work and debt financing. The Municipality's non-growth-related reserves
(supported by utility rates) will remain in a positive balance over the period and continue
to increase.
The fluctuation in cash balances over the planning period reflects the use of
accumulated reserves to fund significant capital investments and associated financing
requirements related to both growth and non-growth infrastructure. The Statement of
Cash Flow demonstrates that the water system maintains sufficient cash resources to
meet its operating, capital, and debt servicing obligations over the planning period.
12
Statement of Change in Net Financial Assets (Debt) - Table 4
The Statement of Change in Net Financial Assets (Debt) indicates whether revenues
generated during the period are sufficient to cover operating expenses and tangible
capital asset costs. It also reconciles the annual surplus or deficit with the change in net
financial assets or debt for the period.
The statement outlines that, in 2026, the annual surplus of $4.7 million and amortization
of $145,600 are less than the forecasted capital expenditures of $6.6 million, resulting in
a decrease in net financial asset of $1.8 million for 2026.
The change in net financial assets shown in this statement does not indicate an
operating shortfall. Rather, it reflects the timing and financing of significant capital
investments required to maintain the water infrastructure. Over the planning period,
changes in net financial assets or debt are expected to align with the Municipality's
capital program and long-term financial strategy for the drinking water system.
13
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Revenues
Water Sales
Rate Revenue (Fixed + Variable)
$653.2
$795.4
$891.1
$944.6
$1,017.8
$1,073.9
$1,133.0
$1,195.4
$1,261.2
Water Meter Revenue
$1.5
$1.5
$1.6
$1.6
$1.6
$1.7
$1.7
$1.7
$1.8
Penalties
$16.0
$16.3
$16.6
$17.0
$17.3
$17.7
$18.0
$18.4
$18.7
User Fees
$2.0
$2.0
$2.1
$2.1
$2.2
$2.2
$2.3
$2.3
$2.3
From Wastewater Reserves
$85.0
$50.0
$10.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
DC Recovery
$0.0
$0.0
$0.0
$0.0
$35.2
$39.5
$44.2
$49.5
$55.4
Grant Funding
$4,798.4
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Earned DC Revenue
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Interest Earned
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Total Revenue
$5,556.1
$865.3
$921.4
$965.3
$1,074.1
$1,134.9
$1,199.2
$1,267.3
$1,339.5
Expenditures
Amortization Expense
$145.6
$337.3
$332.4
$332.4
$332.2
$318.3
$318.3
$317.6
$320.5
In-Year Asset Disposal
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Interest on Debt Expense
$0.0
$81.5
$80.1
$182.1
$179.0
$175.7
$172.3
$168.8
$165.1
Operating Expense
$713.5
$732.0
$751.0
$770.5
$790.6
$811.2
$832.5
$854.3
$876.8
Total Expenditures
$859.1
$1,150.7
$1,163.5
$1,285.0
$1,301.8
$1,305.3
$1,323.1
$1,340.7
$1,362.4
Annual Surplus/(Deficit)
$4,697.0
(285.42)
(242.15)
(319.68)
(227.69)
(170.40)
(123.93)
(73.41)
(22.86)
Annual Surplus/(Deficit)
$4,697.0
(285.42)
(242.15)
(319.68)
(227.69)
(170.40)
(123.93)
(73.41)
(22.86)
Accumulated Surplus, Beginning of Period
$5,338.5 $10,035.5
$9,750.0
$9,507.9
$9,188.2
$8,960.5
$8,790.1
$8,666.2
$8,592.8
Accumulated Surplus, End of Period
$10,035.5
$9,750.0
$9,507.9
$9,188.2
$8,960.5
$8,790.1
$8,666.2
$8,592.8
$8,569.9
TABLE 1
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
STATEMENT OF OPERATIONS
IN $000S
FORECAST
14
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Financial Assets
Cash
$296.1
$342.4
$426.6
$396.3
$182.6
$194.0
$144.4
$123.0
$141.4
Total Assets
$296.1
$342.4
$426.6
$396.3
$182.6
$194.0
$144.4
$123.0
$141.4
Liabilities
Debt
$1,774.7
$1,746.1
$3,967.1
$3,899.5
$3,828.7
$3,754.6
$3,677.2
$3,596.2
$3,511.5
Deferred Revenue (Deficit)
($52.1)
($29.0)
($5.1)
$19.6
$9.9
($15.6)
($45.4)
($80.0)
($120.0)
Total Liabilities
$1,722.7
$1,717.1
$3,962.0
$3,919.1
$3,838.6
$3,739.0
$3,631.8
$3,516.3
$3,391.6
Net Financial Assets (Debt)
($1,426.5)
($1,374.7)
($3,535.4) ($3,522.7) ($3,656.0) ($3,545.0) ($3,487.4) ($3,393.3) ($3,250.1)
Non-Financial Assets
Tangible Capital Assets
$11,462.0
$11,124.7
$13,043.3 $12,710.9 $12,616.5 $12,335.1 $12,153.6 $11,986.0 $11,820.0
Accumulated Surplus (Deficit)
$10,035.5
$9,750.0
$9,507.9
$9,188.2
$8,960.5
$8,790.1
$8,666.2
$8,592.8
$8,569.9
TABLE 2
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
STATEMENT OF FINANCIAL POSITION
IN $000S
FORECAST
15
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Operating Transactions
Annual Surplus/(Deficit)
$4,697.0
($285.4)
($242.2)
($319.7)
($227.7)
($170.4)
($123.9)
($73.4)
($22.9)
Add: Amortization of TCA's
$145.6
$337.3
$332.4
$332.4
$332.2
$318.3
$318.3
$317.6
$320.5
Less: DC Revenue
$0.0
$0.0
$0.0
$0.0
($35.2)
($39.5)
($44.2)
($49.5)
($55.4)
Add: Development Charge Proceeds
$11.7
$23.1
$23.9
$24.7
$25.6
$13.9
$14.4
$14.9
$15.4
Add: In-year Asset Disposal
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Less: Interest
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Cash Provided by Operating
$4,854.3
$75.0
$114.1
$37.4
$94.9
$122.4
$164.6
$209.6
$257.6
Capital Transactions
Proceeds on Sale of Tangible Capital Assets
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Less: Cash Used to Acquire Tangible Capital Assets
($6,603.1)
$0.0
($2,251.0)
$0.0
($237.9)
($36.9)
($136.8)
($150.0)
($154.5)
Cash Applied to Capital
($6,603.1)
$0.0
($2,251.0)
$0.0
($237.9)
($36.9)
($136.8)
($150.0)
($154.5)
Investing Transactions
Proceeds from Investments
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Less: Cash Used to Acquire Investments
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Cash Applied to Investing
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Financing Transactions
Proceeds from Debt Issues
$1,774.7
$0.0
$2,251.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Less: Debt Repayment (Principal Only)
$0.0
($28.6)
($30.0)
($67.7)
($70.8)
($74.0)
($77.4)
($81.0)
($84.7)
Cash Applied to Financing
$1,774.7
($28.6)
$2,221.1
($67.7)
($70.8)
($74.0)
($77.4)
($81.0)
($84.7)
Increase (Decrease) in Cash Equivalents
$25.9
$46.3
$84.2
($30.2)
($213.7)
$11.4
($49.7)
($21.4)
$18.4
Cash and Cash Equivalents
Beginning of Period
$270.2
$296.1
$342.4
$426.6
$396.3
$182.6
$194.0
$144.4
$123.0
Increase (Decrease)
$25.9
$46.3
$84.2
($30.2)
($213.7)
$11.4
($49.7)
($21.4)
$18.4
End of Period
$296.1
$342.4
$426.6
$396.3
$182.6
$194.0
$144.4
$123.0
$141.4
TABLE 3
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
STATEMENT OF CASH FLOW
IN $000S
FORECAST
16
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Annual Surplus/(Deficit)
$4,697.0
($285.4)
($242.2)
($319.7)
($227.7)
($170.4)
($123.9)
($73.4)
($22.9)
Amortization of Tangible Capital Assets
$145.6
$337.3
$332.4
$332.4
$332.2
$318.3
$318.3
$317.6
$320.5
Less: Acquisition of Tangible Capital Assets
($6,603.1)
$0.0
($2,251.0)
$0.0
($237.9)
($36.9)
($136.8)
($150.0)
($154.5)
Change in Net Financial Assets (Debt)
($1,760.5)
$51.9
($2,160.8)
$12.7
($133.3)
$111.0
$57.6
$94.2
$143.1
Net Financial Assets (Debt)
Beginning of Period
$334.0
($1,426.5)
($1,374.7) ($3,535.4)
($3,522.7) ($3,656.0) ($3,545.0) ($3,487.4) ($3,393.3)
Increase (Decrease)
($1,760.5)
$51.9
($2,160.8)
$12.7
($133.3)
$111.0
$57.6
$94.2
$143.1
End of Period
($1,426.5) ($1,374.7)
($3,535.4) ($3,522.7)
($3,656.0) ($3,545.0) ($3,487.4) ($3,393.3) ($3,250.1)
FORECAST
TABLE 4
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (DEBT)
IN $000S
17
Budget
FORECAST
2026
2027
2028
2029
2030
2031
2032
2033
2034
Accumulated Surplus Consists of:
Opening Reserve Balance
Development Charge Reserve
($63.8)
Water Reserve
$334.0
Total Reserve Balance
$270.21
Less: Debt Obligations and Deferred Revenue
$63.8
Add: Tangible Capital Assets
$5,004.5
Total Opening Balance
$5,338.5
$10,035.5
$9,750.0
$9,507.9
$9,188.2
$8,960.5
$8,790.1
$8,666.2
$8,592.8
Add: Contributions to/(from) Reserves (Excl. DCs)
Water Reserve
$14.2
$23.2
$60.3
($55.0)
($204.1)
$37.0
($19.9)
$13.2
$58.4
Total Change in Reserve
$14.2
$23.2
$60.3
($55.0)
($204.1)
$37.0
($19.9)
$13.2
$58.4
Add: Changes in TCA During the Year
Non-Growth Capital Assets Acquired/Disposed
$6,035.2
$0.0
$2,251.0
$0.0
$237.9
$36.9
$136.8
$150.0
$154.5
Growth-Related Capital Assets Acquired/Disposed
$567.9
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Amortization of Capital Assets
($145.6)
($337.3)
($332.4)
($332.4)
($332.2)
($318.3)
($318.3)
($317.6)
($320.5)
Total Changes in Tangible Capital Assets
$6,457.5
($337.3)
$1,918.6
($332.4)
($94.4)
($281.4)
($181.5)
($167.6)
($166.0)
Subtract Changes in Debt Position
New Debt
($1,774.7)
$0.0
($2,251.0)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Debt Repayment
$0.0
$28.6
$30.0
$67.7
$70.8
$74.0
$77.4
$81.0
$84.7
Total Change in Debt
($1,774.7)
$28.6
($2,221.1)
$67.7
$70.8
$74.0
$77.4
$81.0
$84.7
Total Ending Balance
$10,035.5
$9,750.0
$9,507.9
$9,188.2
$8,960.5
$8,790.1
$8,666.2
$8,592.8
$8,569.9
TABLE 5
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
RECONCILIATION OF ACCUMULATED SURPLUS
IN $000S
18
5. Notes and Assumptions
Cash and Reserves
The beginning of period Cash and Cash equivalents contains on the Statement of Cash
Flow is the total of the opening balance of reserve funds. The opening balances were
unaudited at the time the Financial Plan was prepared and may change. The opening
balances also do not include any surplus or deficit that may arise from 2025.
Lead Pipes
Ontario Regulation 453/07 contains a requirement for municipalities to include in the
Financial Plan the cost associated with replacing lead pipes that are part of the drinking
water system. Currently, the Municipality does not have any lead pipes in the water
system, nor is it expected to emplace any in the future. Therefore, no provision for lead
pipe replacement is required for this plan.
Debt and Financing Assumptions
Interest rate assumptions are based on prevailing market conditions at the time the
Financial Plan is prepared. Actual debt issuance, financing requirements, and related
costs may vary over the planning period due to changes in market conditions, project
timing, and funding requirements.
Deferred Revenue
Deferred revenue consists of development charge reserve fund balances. In
accordance with applicable financial reporting standards, development charges are
recorded as a liability and recognized as revenue only when the funds are used to
acquire or construct the related infrastructure for which the charges were collected.
19
Appendix A
Supporting Tables
20
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Expenditures
Operating Costs
Wages and Benefits
$207.9
$214.1
$220.5
$227.1
$234.0
$241.0
$248.2
$255.7
$263.3
Materials and Supplies
$156.5
$161.0
$165.6
$170.4
$175.3
$180.4
$185.7
$191.2
$196.9
Contracts
$35.8
$36.5
$37.2
$38.0
$38.8
$39.5
$40.3
$41.1
$41.9
OCWA - Capital
$80.0
$82.4
$84.9
$87.4
$90.0
$92.7
$95.5
$98.4
$101.3
OCWA - Contract
$188.3
$192.1
$195.9
$199.8
$203.8
$207.9
$212.1
$216.3
$220.6
Unfinanced Capital
$45.0
$45.9
$46.8
$47.8
$48.7
$49.7
$50.7
$51.7
$52.7
Enhanced Services
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Total Operating Costs
$713.5
$732.0
$751.0
$770.5
$790.6
$811.2
$832.5
$854.3
$876.8
Capital Costs
Non-Growth Related Capital
$6,035.2
$0.0
$2,251.0
$0.0
$237.9
$36.9
$136.8
$150.0
$154.5
Grant Funding
($4,798.4)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Growth Related Capital
$567.9
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Future Debt Financing (Principal, Enter as negative)
($1,206.8)
$0.0
($2,251.0)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Existing Debt Financing
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
DC Reserve Transfer - Debt Financing
($567.9)
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Transfer from reserve (for capital)
($30.0)
$0.0
$0.0
$0.0
($237.9)
($36.9)
($136.8)
($150.0)
($154.5)
Annual Debt Payments (for Existing Capital)
$0.0
$35.2
$35.2
$35.2
$35.2
$35.2
$35.2
$35.2
$35.2
Annual Debt Payments (for Future Capital)
$0.0
$74.9
$74.9
$214.5
$214.5
$214.5
$214.5
$214.5
$214.5
Net Capital Costs
($0.0)
$110.1
$110.1
$249.8
$249.8
$249.8
$249.8
$249.8
$249.8
Reserve Contribution
Contribution to/(from) Reserves
$44.2
$23.2
$60.3
($55.0)
$33.8
$73.9
$116.9
$163.2
$212.9
Total Reserve Contributions
$44.2
$23.2
$60.3
($55.0)
$33.8
$73.9
$116.9
$163.2
$212.9
Total Expenditures
$757.7
$865.3
$921.4
$965.3
$1,074.1
$1,134.9
$1,199.2
$1,267.3
$1,339.5
Revenues
Water Rate Revenue
$653.2
$795.4
$891.1
$944.6
$1,017.8
$1,073.9
$1,133.0
$1,195.4
$1,261.2
Water Meter Revenue
$1.5
$1.5
$1.6
$1.6
$1.6
$1.7
$1.7
$1.7
$1.8
Penalties
$16.0
$16.3
$16.6
$17.0
$17.3
$17.7
$18.0
$18.4
$18.7
User Fees
$2.0
$2.0
$2.1
$2.1
$2.2
$2.2
$2.3
$2.3
$2.3
From Wastewater Reserves
$85.0
$50.0
$10.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
DC Recovery
$0.0
$0.0
$0.0
$0.0
$35.2
$39.5
$44.2
$49.5
$55.4
Total Revenues
$757.7
$865.3
$921.4
$965.3
$1,074.1
$1,134.9
$1,199.2
$1,267.3
$1,339.5
APPENDIX A - TABLE 1
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
OPERATING BUDGET FORECAST
IN $000S
FORECAST
21
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Capital Program
Growth Related
$567.9
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Non-Growth Related
$6,035.2
$0.0
$2,251.0
$0.0
$237.9
$36.9
$136.8
$150.0
$154.5
Total
$6,603.1
$0.0
$2,251.0
$0.0
$237.9
$36.9
$136.8
$150.0
$154.5
Funding Sources
Operating Contributions
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Grant Funding
$4,798.4
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Debenture Requirements (Non-Growth)
$1,206.8
$0.0
$2,251.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Transfer from Development Charges Reserve
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Debenture Requirements (Growth)
$567.9
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Transfer from reserve (for capital)
$30.0
$0.0
$0.0
$0.0
$237.9
$36.9
$136.8
$150.0
$154.5
Total Funding
$6,603.1
$0.0
$2,251.0
$0.0
$237.9
$36.9
$136.8
$150.0
$154.5
APPENDIX A - TABLE 2
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
IN $000S
CAPITAL BUDGET FORECAST
FORECAST
22
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Water Reserve
Opening Balance
$334.0
$348.2
$371.4
$431.7
$376.8
$172.7
$209.6
$189.8
$203.0
Transfer To Reserves
$44.2
$23.2
$60.3
($55.0)
$33.8
$73.9
$116.9
$163.2
$212.9
Transfer From Reserves
($30.0)
$0.0
$0.0
$0.0
($237.9)
($36.9)
($136.8)
($150.0)
($154.5)
Interest
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Ending Balance
$348.2
$371.4
$431.7
$376.8
$172.7
$209.6
$189.8
$203.0
$261.4
Debenture Requirements
$1,206.8
$0.0
$2,251.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
APPENDIX A - TABLE 3
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
RESERVE STATEMENT
IN $000S
FORECAST
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Development Charges Reserve
Opening Balance
($63.8)
($52.1)
($29.0)
($5.1)
$19.6
$9.9
($15.6)
($45.4)
($80.0)
Revenue
$11.7
$23.1
$23.9
$24.7
$25.6
$13.9
$14.4
$14.9
$15.4
Transfer to Capital
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Transfer to Operating for Debt
$0.0
$0.0
$0.0
$0.0
($35.2)
($39.5)
($44.2)
($49.5)
($55.4)
Interest
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Ending Balance
($52.1)
($29.0)
($5.1)
$19.6
$9.9
($15.6)
($45.4)
($80.0)
($120.0)
Debenture Requirements
$567.9
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
FORECAST
23
2026
2027
2028
2029
2030
2031
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
New Debt
$0.0
$0.0
$28.6
$81.5
$30.0
$80.1
$67.7
$182.1
$70.8
$179.0
$74.0
$175.7
Existing Debt
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Total
$0.0
$0.0
$28.6
$81.5
$30.0
$80.1
$67.7
$182.1
$70.8
$179.0
$74.0
$175.7
2032
2033
2034
2035
2036
Total
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
New Debt
$77.4
$172.3
$81.0
$168.8
$84.7
$165.1
$88.6
$161.2
$92.7
$157.1
$695.5
$1,522.9
Existing Debt
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Total
$77.4
$172.3
$81.0
$168.8
$84.7
$165.1
$88.6
$161.2
$92.7
$157.1
$695.5
$1,522.9
APPENDIX A - TABLE 4
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
GROWTH & NON-GROWTH RELATED DEBENTURE SCHEDULE
IN $000S
24
Budget
2026
2027
2028
2029
2030
2031
2032
2033
2034
Opening Tangible Capital Assets
$7,051
$13,654
$13,654
$15,905
$15,905
$16,142
$16,179
$16,316
$16,466
Plus: Acquisitions - Repair/Replacement
$6,603
$0
$2,251
$0
$238
$37
$137
$150
$155
Less: Disposals
$0
$0
$0
$0
$0
$0
$0
$0
$0
Closing Tangible Capital Assets
$13,654
$13,654
$15,905
$15,905
$16,142
$16,179
$16,316
$16,466
$16,621
Opening Accumulated Amortization
$2,046
$2,192
$2,529
$2,861
$3,194
$3,526
$3,844
$4,163
$4,480
Plus: Amortization Expense
$146
$337
$332
$332
$332
$318
$318
$318
$320
Closing Accumulated Amortization
$2,192
$2,529
$2,861
$3,194
$3,526
$3,844
$4,163
$4,480
$4,801
Net Book Value
$11,462
$11,125
$13,043
$12,711
$12,617
$12,335
$12,154
$11,986
$11,820
FORECAST
APPENDIX A - TABLE 5
MUNICIPALITY OF CENTRE HASTINGS
WATER FINANCIAL PLAN
TANGIBLE CAPITAL ASSETS
IN $000S