Recommendation: That, on the
recommendation of the Managing Director, Corporate Services and
City Treasurer, Chief Financial Officer, the following actions be taken with respect
to the 2012 Operating Budget Status – 4th Quarter Report for the General
Budget (Property Tax Supported), Water and Wastewater Budgets:
a) the
status report BE RECEIVED for information; it being noted that the 2012
corporate operating savings resulted from:
i) $5.2
million in net savings for the General (Property Tax Supported) Budget as
identified by Civic Departments, Boards and Commissions; it being noted that
the year-end savings are $2.7 million higher than projected in the 2012
Operating Budget Status – 3th Quarter Report, and the $5.2 million operating
surplus was contributed to the Operating Budget Contingency Reserve,
consistent with Council direction;
ii) $0.3
million in net savings for the Water rate supported budget was realized; it
being noted that this year-end surplus is $0.6 million greater than the $0.3
million deficit reported in the 2012 Operating Budget Status – 3rd Quarter
Report, and the $0.3 million in savings has been contributed to the Water
Capital Reserve Fund and will assist in funding future capital expenditures,
consistent with Council direction; and
iii) $1.4
million in net savings for the Wastewater rate supported budget was realized;
it being noted that the $1.4 million surplus is an approximate $1.4 million
change from the projected breakeven position in the 2012 Operating Budget
Status – 3rd Quarter Report, and of the $1.4 million savings, $1.2 million
has been contributed to the Sewage Works Reserve Fund and $0.2 million has
been contributed to the Wastewater Rate Stabilization Reserve, consistent
with Council direction;
b) the
Civic Administration BE AUTHORIZED to draw down $0.7 million from the
Operating Budget Contingency Reserve and contribute the funding to the
Economic Development Reserve Fund to be used to support initiatives brought
forward by the Investment and Economic Prosperity Committee that best
accelerate London’s economy and foster private sector investment in the City;
it being noted that
the $4.5 million balance pertaining to the 2012 savings of $5.2 million has
already been allocated by Municipal Council for the following:
i) $2.0
million from the Operating Budget Contingency Reserve to the City Facilities
Reserve Fund in order to provide a source of funding for facility-related
initiatives such as Ontario Works Decentralization, consistent with direction
received in the 2012 Operating Budget Status –3rd Quarter Report;
ii) $1.1
million to the Corporate Financing service as revenue, recognizing that
during 2013 Budget deliberations, Council directed Civic Administration to
utilize 2012 surplus funding to reduce the 2013 tax levy from rates;
iii) $0.5
million to the London & Middlesex Housing Corporation (LMHC), recognizing
that during 2013 Budget deliberations, Council directed Civic Administration
to use 2012 surplus to reduce its 2013 Budget increase;
iv) $0.9
million to the Corporate Financing service as revenue; it being noted that
this is consistent with Municipal Council direction with regard to corporate
surplus policy; and
v) the
London Advisory Committee on Heritage (LACH) 2012 surplus of $4,498 to the
LACH 2013 budget to be used for the purchase of interpretive signage for the
Tempo Vll Hydroplane and the replacement of a bronze heritage plaque commemorating
the former Supertest station located on Carfrae Crescent; it being noted that
this action is consistent with Municipal Council direction received on
January 15, 2013; and
c) the
Civic Administrations contribution of $3.3 million ($2.9 million – property
tax supported; $0.2 million – wastewater; and $0.2 million – water) to the
Efficiency, Effectiveness and Economy reserves in 2012 BE NOTED for
information.
Note: Subject to year end financial
statement audit and adjustments related to the accounting for tangible
capital assets (PSAB 3150).
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