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 –
Third Quarter Report for the Property Tax Supported, Water, and Wastewater
and Treatment Budgets;
a) the
2015 Operating Budget Status – Third Quarter Report for the Property Tax
Supported (refer to Appendix A of the staff report dated December 1, 2015),
Water, and Wastewater and Treatment Budgets BE RECEIVED for information, it
being noted that Civic Administration is projecting:
i) $4.7
million in net savings for the Property Tax Supported Budget as identified by
the Civic Administration and Boards and Commissions. The year-end position
could fluctuate significantly based on factors beyond the control of the Civic
Administration such as Ontario Works caseload pressures, winter maintenance
conditions and mandatory community improvement plan program incentives. It
should also be noted that the Civic Administration increased the London
Police Service budget by $1.6 million in the 3rd quarter to address budget-related
matters concerning policing services by a corresponding budget reduction in
Financial Management;
ii) $1.1
million deficit in the Water Rate Supported Budget;
iii) $0.2
million deficit in the Wastewater and Treatment Rate Supported Budget;
b) the
Civic Administration BE AUTHORIZED to contribute to/draw down from the
Operating Budget Contingency Reserve to balance year-end operations of the
Property Tax Supported Budget should the Budget be in a surplus/deficit
position;
c) the
Civic Administration BE AUTHORIZED to contribute to the Unfunded Liability
Reserve, any operational savings realized from personnel and contingency
budgets at 2015 year-end; it being noted that the net unfunded liability
balance as reported in the 2014 Financial Statement is at $94.6 million;
d) the
Civic Administration BE AUTHORIZED to draw down from the Social Services
Reserve Fund to offset transitional costs associated with the establishment
of the Northeast and Southeast Ontario Works (OW) locations; it being noted
that if sufficient savings to cover the transitional costs exist within the
OW service area the draw down will not be taken;
e) the
Civic Administration BE AUTHORIZED to contribute to/draw down from the Water
Capital Reserve Fund to balance year-end operations of the Water Budget
should the Budget be in a surplus/deficit position;
f) the
Civic Administration BE AUTHORIZED to contribute to/draw down from the
Wastewater Rate Stabilization Reserve to balance year-end operations of the
Wastewater & Treatment Budget should the Budget be in a surplus/deficit
position; and
g) details
of the Civic Administration’s contribution of $926,303 ($692,227 – Property
Tax Supported; $165,160 – Water; and $68,916. – Wastewater) to the
Efficiency, Effectiveness and Economy reserves in 2015 BE RECEIVED for
information.
|