1. December 4, 2008 - National Capital Heavy Construction Association Committee of the Whole 2009 Draft Operating and Capital Budgets Tax Supported Programs December 4, 2008 1

2. National Capital Heavy Construction Association 200 companies in the road building, aggregate, sewer and water main production industries. Employ 9,000 employees ($350 M in payroll). $165 million annual capital investment. Pay out in excess of $170 million annually in federal, provincial and property taxes. We make sizeable charitable donations & contributions, to fund sports, arts and culture activities in the area. We are a major economic player in the Ottawa Area 2 December 4, 2008 - National Capital Heavy Construction Association

3. Taxpayers Investment in Infrastructure Over $26 Billion $75,000 per household. Over $10 Billion in Transportation Infrastructure Over $12 Billion in Environmental Infrastructure However, Councils have been putting off the fixing & renewing of Infrastructure $1.1 billion funding gap. 3 December 4, 2008 - National Capital Heavy Construction Association

4. 2007 - 2009 Capital Budget (excluding Transit) 4 December 4, 2008 - National Capital Heavy Construction Association

5. 2007 to 2009 Capital Budget CategoryTotal CityRoadways & Integrated Roads 20072008200920082009 Renewal of City assets $306,426,000$141,337,000$137,859,000$84,644,000$76,379,000 Growth-related capital work $282,916,000$122,315,000$109,921,000$65,187,000$74,985,000 Strategic Initiatives $33,549,000$55,959,000$66,582,000$1,762,000$5,435,000 Regulatory$11,549,000---- Total 633,915,000$319,661,000$314,362,000$151,593,000$156,799,000 Category 200 7 20082009 Transportation Services (roadways)$98,555,000$133,616,000$113,764,000 Integrated Roads (excl. Water & Sewer) $106,145,000$17,977,000$43,035,000 Total$204,700,000$151,593,000$156,799,000 Note: Transit has not yet been determined for 2009, and is excluded from the 2008 figure for comparison purposes. Transit investment totaled $208,709,000 in 2007 5 December 4, 2008 - National Capital Heavy Construction Association

6. Road Renewal & Resurfacing 6 December 4, 2008 - National Capital Heavy Construction Association

7. Cost of payment neglect Renewal Treatment Treatment Cost per lane-km $,000 Gain in Pavement Life (Range for arterial and local roads) Reconstruction$530 - $650 ($590)18 – 25 years Resurfacing - Mill and overlay$100 - $140 ($120)13 – 23 years Preservation -Microsurfacing -Thin overlays $25 – 40 ($32.5) $40 - $45 ($42.5) 5 – 12 years Source: September 22, 2008 Transportation Committee Report 7 December 4, 2008 - National Capital Heavy Construction Association

8. The Consequences of not making the needed infrastructure investment Increased costs to make repairs. Environmental impacts. Public health and safety issues. Increased liabilities. Reduced credit ratings. Taxpayer dissatisfaction. Less money in the future to spending on programs. 8 December 4, 2008 - National Capital Heavy Construction Association

9. Taxpayers support for Infrastructure Renewal A survey of 400 Ottawa households revealed that residents support the 2% Infrastructure Renewal Tax Levy. The top priority for infrastructure renewal expenditure was on roads, followed by water mains, bridges and sewers. NCHCA findings confirmed by Harris/Decima survey 9 December 4, 2008 - National Capital Heavy Construction Association

10. Water and Wastewater Rate Support Capital The City is on the right track with respect to the rate supported infrastructure. The 9% increase approved last month makes sense to catch up on maintaining and improving the water and sewer system. 10 December 4, 2008 - National Capital Heavy Construction Association

11. Proper Investment in Infrastructure makes: Dollars & Sense Saves taxpayers money in the long run Consistent with the 2007 Fiscal Framework Consistent with the 2007-2010 City Strategic Plan 11 December 4, 2008 - National Capital Heavy Construction Association

12. Fed. & Prov. Infrastructure Investment The U.S., as well as the federal and provincial governments recognize the importance of investing in infrastructure during a period of economic downturn. A $20 million infrastructure investment by the City (matched by the provincial and federal governments) would translate into creating 700 jobs. Please make sure that the City of Ottawa is positioned to take advantage of these funding opportunities. 12 December 4, 2008 - National Capital Heavy Construction Association

13. Recommendations: 1.Support the 2% Capital Tax increase. 2.Increase investment in infrastructure in order to maximize contributions from the federal and provincial governments and create jobs. 3.Review list of Capital projects to remove questionable operational projects from the list. 4.Review unspent Capital projects and reallocate this money to much needed infrastructure renewal projects. 5.Increase expenditure on road infrastructure renewal. 6.Reinstate the gravel road dust control and roadside ditching reductions of $1 million. 7.Reallocate money from the $77.3 million provided by the province to roads. 8.Establish appropriate construction standards to reflect rural vs. suburban vs. urban requirements. 9.No new services that are not funded by a reduction elsewhere. 13 December 4, 2008 - National Capital Heavy Construction Association

14. In Conclusion: My Ottawa includes …. This is a huge amalgamated City that needs roads. Don’t fall into the “us” versus “them” mentality. We are not in this financial mess because we built roads. We are here because of tax freezes. Don’t forget to replace the damaged shingles. Run the City the same way we run our businesses – a long term view. 14 December 4, 2008 - National Capital Heavy Construction Association