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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 2015 Operating Budget Status – Fourth Quarter Report for the
Property Tax Supported, Water and Wastewater and Treatment Budgets:
a) the 2015
Operating Budget Status – Fourth Quarter Report for the Property Tax
Supported (refer to Appendix A of the staff report dated April 12, 2016),
Water and Wastewater and Treatment Budgets BE RECEIVED for information; it
being noted that an overview of the net corporate positions is as follows:
i)
$3.1
million in net savings for the Property Tax Supported Budget as identified by
Civic Service Areas and Boards and Commissions; it being noted that clauses
2, 3 and 4 are included in the $3.1 million savings, the year-end savings is
$1.6 million less than projected in the 2015 Operating Budget Status – Third
Quarter Report and the $3.1 million operating surplus was contributed to the
Operating Budget Contingency Reserve;
ii)
a
$1.1 million deficit in the Water Rate Supported Budget was incurred; it
being noted that the year-end deficit has remained unchanged from the 2015
Operating Budget Status – Third Quarter Report, and to balance Water’s 2015 Budget
a draw of $1.1 million was taken from the Water Capital Reserve Fund;
iii)
a
$0.6 million deficit in the Wastewater and Treatment Rate Supported Budget
was incurred; it being noted that the year-end deficit is $0.4 million more
than projected in the 2015 Operating Budget Status – Third Quarter Report, and
to balance the Wastewater and Treatment 2015 Budget a draw of $0.4 million
was taken from the Wastewater Rate Stabilization Reserve and $0.2 million
from the Sewage Works Reserve Fund;
b)
with
respect to the Social Housing operational savings of $145,456, the Civic
Administration BE AUTHORIZED to contribute the savings to the Affordable
Housing Reserve Fund which will be used to support housing initiatives and
future work with the Housing Development Corporation;
c)
with
respect to the Information Technology Services (ITS) operational savings of
$2,500,000, the Civic Administration BE AUTHORIZED to contribute the savings
to the ITS Reserve Fund which will be used to fund the ITS Backup Data Centre,
which is a key component of the Corporation-wide Continuity and Disaster
Recovery Plan; it being noted that the $2,500,000 contribution will advance
this critical portion of the project from 2020 to either 2017 or 2018;
d)
the
request to fund the 2015 London & Middlesex Housing Corporation
operational deficit of $369,450 BE APPROVED (letter attached to the staff
report dated April 12, 2016); it being noted that historically surpluses have
been returned to the City while deficits have been funded by the City;
e)
the
Civic Administration BE AUTHORIZED to allocate the $3.1 million in net
savings from the Property Tax Supported Budget in accordance with the Council
approved Surplus/Deficit Policy as follows:
i)
$1.6
million to reduce authorized but unissued debt;
ii)
$770
thousand to the Community Investment Reserve Fund; and
iii)
$770
thousand to the Capital Infrastructure Gap Reserve Fund.
f)
the
Civic Administration’s contribution of $3,884,674 ($3,053,067 – property tax
supported; $444,826 – water; and $386,781 – wastewater) to the Efficiency,
Effectiveness and Economy reserves in 2015 BE RECEIVED 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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