The presentation summarizes upcoming major debt projects for the Town of Parry Sound from 2018 to 2021 totaling over $28 million. It estimates the tax levy impact for taxpayers, with increases of 4.6% in 2019, 2.65% in 2020, and 3.56% in 2021. While repayments will impact taxes starting years 2-3, the projects are expected to generate new tax revenue from development in years 5-6 onwards as potential returns on the Town's investments. A graph projects total debt to 2051 remaining within repayment limits.

1. 2017 Town of Parry
Sound Budget
Presentation to Council January 10, 2017
Presented by Trevor Pinn, CPA, CA
Director of Finance and POA Court Services
1

2. Agenda
 Upcoming Major Debt Projects and
Impact
2

3. Upcoming Major Debt Projects 2018 to
2021
Project Total
Principal
Total
Interest
Tax Levy
Impact 1st Yr
Tax Year
Beginning
BOCC Floor
Replacement
$1,000,000 $347,438 0.83% 2019
Champagne St $1,500,000 $521,156 0.43% 2019
Property Purchase $4,000,000 $1,389,751 3.34% 2019
Parry Sound Road
Extension
$9,375,000 $3,258,275 2.65% 2020
Great North Road $8,000,000 $2,781,360 2.27% 2021
Innovation Park $4,550,000 $1,581,898 1.29% 2021
3
All figures are
approximations
based on
current
available
information and
are subject to
change

4. Tax Levy Impact
 Assumes 20 year debt at 3.39% (actual rates may be higher)
 Principal is a rough estimate and is subject to cost and design fluctuations
 Tax levy increases solely for this debt are estimated to be:
 2019 4.60%
 2020 2.65%
 2021 3.56%
 Does not include 1.8% capital levy for the existing infrastructure replacement
needs of the Town
 Does not include inflation, other service enhancements
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5. Future Returns on Projects
 These development projects (other than BOCC floor) will have future tax base
growth impact which will generate future revenues
 Potential timetable
 Year 1 Infrastructure construction underway
 Year 1 / 2 Infrastructure construction complete and debenture issued
 Year 2 / 3
 Repayments of debt start (tax levy impact to fund repayment)
 Potential development construction begins
 Year 5 First phase of development complete, partial tax income on new buildings
 Year 6 First full year of tax revenue on the new assessment
 Staff suggest that there is at least a 2 year lag between when the Town needs to
start repaying debt on the investment and when new revenue may be earned.
This assumes immediate development. A longer timeframe could be realized on
some projects.
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6. Projected Debt to 2051
6
-
500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
3,500,000.00
4,000,000.00
4,500,000.00
5,000,000.00
Total Current, Budgeted and Proposed Debt Servicing Costs 2016 to 2051
Total Existing Debt Total New Debt
Total Proposed Debt >2017 Legal Maximum Annual Repayment Limit (25% of Net Revenues)
Repayment Limit at 10% of Net Revenues Repayment Limit at 15% of Net Revenues