Capital financing and other financial costs relate to raising funds in the operating budget and transferring to the capital fund to help pay for the current year’s capital works program. It provides for principal and interest payments on tax-supported debt that has been issued as of the beginning of the year plus an amount estimated to be issued during 2022. It includes transferring funds to various reserves which, in turn, will be used to fund specific operating and capital expenditures.

Highlights

Debt and Capital Levy

Tax-supported debt charges reflected in this budget exclude debt recoverable from other non-tax sources which have been included in other departmental budgets. 

On April 23, 2012, Council approved a Debt Management and Capital Financing Plan through Report CPFS12-011 presented to the Budget Committee on April 4, 2012. The Plan increased the amount of debt the City can issue as well as Capital Levy dedicated to capital projects. To phase-in the new plan, the total annual amount of new tax-supported debt charges, plus any increase in the capital levy provision is limited to a 1% impact on the all inclusive tax increase. The amount for the Capital Financing for the 2022 Capital Program has been accommodated within the 2.75% all inclusive increase and in balance with the other funding pressures in the 2022 operating budget and capital program.

Transfers to the Flood Reduction Master Plan Reserve

Transfer from Capital Levy: $1.6 million of capital levy has been transferred to the Capital Levy Flood Reduction Master Plan reserve to fund specific Flood Reduction Master Plan (FRMP) capital projects requested in the 2022 Budget.

Transfer from Sewer Surcharge: It is being recommended that $2.5 million of the 2021 Sewer Surcharge be transferred to the Sewer Surcharge Supported FRMP reserve to fund specific Flood Reduction Master Plan capital projects as identified in the 2022 Capital Budget. The amount is funded from Sewer Surcharge, which is levied by the PUSI on the water bills.

COPHI Dividend
The dividend received from the Peterborough Utilities Group of Companies is used to bolster the annual capital levy provisions in accordance with a policy adopted by Council on March 27, 2000, based on Report FAFS00-005. 
Legacy Fund
During 2020 the sale of PDI assets to Hydro One was finalized and a committee of staff and council members was formed to review
investment options for the proceeds. In May 2021, Council approved Report CLSFS21-020 establishing a Legacy Fund with the proceeds. The 2022 budget includes $1.5 million to fund a portion of the capital budget.
Transfer to Casino Gaming Reserve
Gaming revenues from the Casino have been estimated at $2.4 million for 2022, taking into consideration the impact of the COVID-19 pandemic on casino operations. The 2018 Approved Budget contains the recommendation "That a Casino Gaming Reserve be created and all Casino gaming revenues be transfer into the reserve, and that except for the provision in 2018 of $150,000 to fund expenditures of the DBIA, this reserve only be used for designated capital projects".

2022 Overview

Capital Financing and Other Financial
Description2022 recommended
Net expenditures $33,287,420
Net revenues $2,500,000
Net Capital Financing costs $30,787,420