That, on the recommendation of the Managing
Director, Corporate Services and City Treasurer, Chief Financial Officer
& City Manager, the following actions be taken with respect to the 2016
year-end monitoring:
a) the
2016 Operating Budget Year-End Monitoring Report for the Property Tax
Supported Budget (refer to Appendix A included in the staff report dated
April 11, 2017), Water, and Wastewater and Treatment Budgets BE RECEIVED for
information. An overview of the net corporate positions are outlined below:
i) Property
Tax Supported Budget surplus is $4.6 million as identified by the Civic
Administration, Boards and Commissions, noting that clause b) is included in
the $4.6 million surplus. The year-end surplus is $0.1 million more than
projected in the 2016 Operating Budget Mid-Year Monitoring Report. The $4.6
million operating surplus was contributed to the Operating Budget Contingency
Reserve;
ii) Water
Rate Supported Budget surplus is $2.1 million. The year-end surplus is $1.8
million more than projected in the 2016 Operating Budget Mid-Year Monitoring
Report. The $2.1 million surplus was contributed to the Water Capital Reserve
Fund; and
iii) Wastewater
and Treatment Rate Supported Budget surplus is $3.3 million. The year-end
surplus is $3.2 million more than projected in the 2016 Operating Budget
Mid-Year Monitoring Report. The $3.3 million surplus was contributed as
follows: $2.2 million to the Wastewater Rate Stabilization Reserve and $1.1
million to the Sewage Works Reserve Fund;
b) the
request to fund the 2016 London & Middlesex Housing Corporation
operational deficit of $50,565, which has been included in the above noted
surplus of $4.6 million, BE APPROVED, noting that historically surpluses have
been returned to the City while deficits have been funded by the City (see
Appendix F for Letter of Request included in the staff report dated April 11,
2017);
c) notwithstanding
the Council approved Surplus/Deficit Policy, the Civic Administration BE
AUTHORIZED to allocate $3.0 million of the $4.6 million surplus from the
Property Tax Supported Budget to the Lorne Avenue Public School Project for
estimated demolition, hazardous materials abatement, and site restoration
costs;
d) one-time
funding of $1.6 million for the Housing Development Corporation (HDC) for
additional investment in affordable housing development BE APPROVED;
e) the
Civic Administration’s contribution of $3,507,019 ($3,099,699 – property tax
supported; $146,774 – water; and $260,546 – wastewater) to the Efficiency,
Effectiveness and Economy reserves in 2016 BE RECEIVED for information; and
f) the
Civic Administration and the Housing Development Corporation BE REQUESTED to
report back at key points throughout the year as to how the housing funds
approved in d), above, are being invested and, if available and appropriate,
what other City funds may be available to be redirected to the Housing
Development Corporation to bring the total investment up to the original
request of $2 million.
Note: The reported year-end surplus is
subject to the financial statement audit and adjustments related to the
accounting for Tangible Capital Assets (PSAB 3150).
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