June 17, 1998

  To:Budget Committee

 From:Chief Financial Officer and Treasurer

 Subject:1998 Capital Budget request for Leaside Memorial Gardens ( Ward 1- former Borough of East York )

  Purpose:

 To report on a 1998 Capital Budget request in the amount of $60,000 for Leaside Memorial Gardens which was overlooked during the 1998 capital budget process. Details relating to the capital budget request are provided in Appendix A.

 Funding Sources, Financial Implications and Impact Statement:

 The net 1998 Capital Budget as approved by Council will not be impacted by the approval of this project since it will be funded by a loan which will be repaid in the same manner as debentures.

 Recommendation:

 It is recommended that approval be given to a loan in the amount of $60,000, which relates to the Arena Lighting Upgrade project, to be repaid by Leaside Gardens in the same manner as if debentures had been issued, and that the Chief Financial Officer and Treasurer be authorized to make the necessary arrangements to give effect thereto.

Background:

 Leaside Memorial Community Gardens is partially funded by the former Borough of East York and is managed by an independent Board Of Management. The former Borough was used as a source of financing for Leaside Gardens capital projects. While the Borough funded projects directly, Leaside Gardens made regular loan payments through their operating budget, repaying the Borough=s reserves at the going interest rates in the same manner as if debentures had been issued.

 Leaside Gardens staff sent this capital budget request to the Borough within the time frame which had been established for 1998 capital budget submissions. The request was overlooked and consequently not included with the former Borough of East York's 1998 capital budget submission. Separate approval is therefore being requested for this 1998 capital budget program.

  Comments and/or Discussion and/or Justification:

 As indicated in Appendix A, the arena=s lighting system is below the minimum lighting standards for this type of facility. There is also a health and safety issue relating to the lack of plastic covers on the light fixtures.

 East York Hydro has indicated that upgrading the lighting system could result in annual energy savings of approximately $1,900.

 Conclusions:

 Approval of the 1998 capital budget request is recommended.

 Timely approval of the project is required to ensure completion by August 1998 to avoid impacting the projected 1999 revenues.

 Contact Name:

 Shekhar Prasad, 392-8095

 W.A. Liczyk

Chief Financial Officer and Treasurer