tax base to support said venture. This significant risk will need to be fully investigated as part of the forthcoming reports to City Council.

Reputational risk to the city if it does not proceed with a major strategy outlined in the Community Energy Plan and the Community Energy Plan emission reduction targets are not met.

The home retrofit program is identified as the number one strategy for emissions reductions in the 2017 Community Energy Plan. Community members are expecting that the city proceed with its own plan to reduce emissions, create jobs and establishing a smart energy future in Windsor by implementing the strategies from the Community Energy Plan. Social awareness of the dangers of climate change and the importance of climate change mitigation through emissions reduction has increased significantly since 2017 as demonstrated by climate strikes and the recent climate emergency declaration. There is reputational risk to the city if it does not proceed with this major strategy as outlined in the Community Energy Plan and if the CEP emission reduction targets are not met.

Financial Matters:

The consultants cost to develop the attached Business Case had an upset limit of $194,400 plus HST. The City of Windsor was awarded an FCM Municipal Climate Innovation Program grant equal to $125,000 or 80% of the eligible costs which ever is less. Thus the net city funding for this project has been $69,400. As has been noted in this report, there are significant financial considerations that must be validated during the next phase of analysis and prior to determining a path forward for this initiative.

In addition to the items identified throughout this report, additional key areas for validation would include amongst various others such items as:

• Corporate Structure of MSC and impacts and financial risks to the municipality

• Cashflow consideration and cashflow impacts to MSC and City

• Funding sources available for this program

• Debt financing and how such debt would be classified and reported

• Administrative and collection matters relative to collection of LIC

• Various employment, legal, insurance related considerations for the MSC.

• Required participation levels under the program that would deem it financially viable and an assessment of the likelihood of achieving such targets.

There are no funding requirements to develop and bring forward the next steps report.

It should be noted however, that should the detailed analysis in the next report support moving forward with a Business Plan, the Consultant’s have estimated that funding of approximately $400,000 would be required as a commitment to fund future phases of the Business Plan development. This start-up funding is also identified in the Climate