Association Outdoor Classroom. Both of these projects will be competed and opened in spring 2020.

• Holiday Beach Road and Parking Lot Resurfacing ($121,000). Phase 2 of resurfacing the roadways will be implemented in 2020. In addition to the roads receiving their final treatment, the parking areas that are currently closed to traffic due to their deteriorated condition will be upgraded and opened.

• Greenway Bridge ($30,000). ERCA is working the Town of Essex through the Drainage Act process to building a pedestrian bridge over outer drain, which runs alongside the Town of Essex Sewage Treatment Plant. The new design will include a precast concrete slab and railing to span the drain instead of a traditional culvert. This will result in a crossing that does not interfere with drainage or remove habitat for aquatic species.

• Conservation Area Signage ($15,000). Many of ERCA's entrance signs are beyond their useful lifespan and in need of replacement. In addition, there is a need to work with municipal partners to install replacement and new way finding signage so visitors can navigate to our conservation areas.

Operational Reserves

• Revenue Stabilization – As municipal levy accounts for slightly less than 40% of the Authority's 2020 operating expenses, the majority of revenues are from sources that may fluctuate in any given year due to economic conditions, changes in government agendas and mandates, and adverse weather. Given the instability surrounding Provincial commitments and transfer payment agreements, Administration is recommending a maintenance straegy to preserve existing balance of $178,000.

• Suite, Network, Office Equipment & Furnishings – to provide for expenses related to the Authority's office equipment and furnishings, computers, servers and related software in accordance with useful life and functionality. In keeping with board direction, funds from the sale of ERCA's share of the Civic Centre are now included in this reserve. This reserve will be utilized in 2020 to support the records digitization project (software/scanners) and hardware replacement,

• Human Resources – to buffer against potential WSIB/ NEER impacts, OMERS restatements, discretionary benefit fluctuations and unanticipated employment . No increase or utilization is proposed.

• Legal & Insurance – to buffer against unexpected insurance deductibles and claims below policy deductibles as well as unexpected legal expenses outside of the annual budget process. Replenishment of $50,000 is included as this reserve was depleted due to two wind events not covered by insurance.

• Vehicle/Field Equipment Replacement – Vehicle and equipment expenses are recovered from accounts with outside funding, through a usage rate system, but most usage is associated with servicing conservation areas and core operations. Administration will continue to manage ERCA's fleet and equipment in an environmentally responsible manner in keeping with Board direction, however the significant additional costs associated with a greener fleet contributes to budget pressures and with the elimination of a provincial rebate program, this policy may need to be revisited.

• Historic Properties Preservation/Maintenance – to provide for major expenses related to preservation and maintenance of two historic properties that are to be preserved in perpetuity, specifically the John R. Park Homestead and the Kingsville Train Station. Due to the infrastructure replacement and major repairs required at the Homestead, the annual allocation has been utilized for several budget cycles. The 2020 budget includes a provision for replacement of the Train Station windows.

• Tree Warranty and Self-Insurance ($90,000 target achieved) – to buffer against potential warranty claims for seedlings covered through the warranty program, and deterioration of seedlings related to weather related planting delays and which is cost prohibitive to insure.

• Clean Water~Green Spaces Land Acquisition ($1.2 million balance: $400,000 budgeted contribution in 2019 for an available total of $1.6 million) – to support land acquisition efforts in keeping with ERCA's Land Securement Strategy, and as leverage for lands acquired with support from partners including senior levels of government.

• Capital Reserve. The Sustainability Plan identified that beginning in 2018, ERCA needs to contribute $200,000 annually representing asset replacement values (historic cost basis) to fund capital reserves, consistent with the TCA report. Due to higher than anticipated costs for workshop replacement, an additional $50,000 is to be contributed.