2013-09-03 Decision Letter - Budget Committee

The Budget Committee recommends to the Executive Committee that:

1. City Council approve in-year budget adjustments to the 2013 Approved Capital Budget detailed in Appendix 2 to the report (August 19, 2013) from the Deputy City Manager and Chief Financial Officer and that the 2013 Approved Capital Budget be adjusted accordingly.

2. City Council receive for information Appendix 3 to the report (August 19, 2013) from the Deputy City Manager and Chief Financial Officer which lists capital projects/sub-projects that have been completed and are to be closed.

3. City Council authorize and direct the appropriate City Officials to take the necessary action to give effect thereto.

The purpose of this report is to provide Council with the 2013 Capital Variance Report for the six month period ended June 30, 2013 as well as projected actual expenditures to December 31, 2013. Furthermore, the report seeks Council’s approval for 2013 in-year budget adjustments.

Capital expenditures for the six months ended June 30, 2013 totalled $713.484 million or 17.4% of the 2013 Approved Capital Budget of $4.107 billion (see Chart 1). This spending pattern is consistent with prior years as City's capital activities tend to accelerate in the second part of the year. As detailed by City Program and Agency in Appendix 1, actual expenditures to year-end are expected to reach $2.988 billion or 72.7% of the total 2013 Approved Capital Budget; 22 of 32 City Programs and Agencies are projecting spending in excess of 70% of their respective 2013 Approved Capital Budget by December 31, 2013: Tax Supported Programs project a spending rate of 73.1% to year-end; while Rate Supported Programs project year-end spending of 71.2%.

(See Chart 1 – 2013 Capital Budget vs. Actual Expenditures for the Period Ending June 30, 2013)

The total financial impact to the 2013 – 2022 Approved Capital Budget and Plan arising from the adoption of the recommended in-year budget adjustments requests in this report results in an overall decrease to the City's 2013 Approved Capital Budget of $1.791 million and increase in 2014 and 2015 Approved Capital Plan of $1.590 million and $3.956 million respectively. 2013 Approved Capital Budget will be reduced by $1 million in debt recoverable funding and $1.556 million in debt funding, offset by increase of $0.765million in reserve funds funding. 2014 cash flow funding will be increased by $1 million in debt recoverable funding and $0.590 million in reserve funds funding, while proceeds from the sale of fire station #135 to Metrolinx will fund 2015 cash flow funding increase of $3.956 million.

Meeting No.	43	Contact	Kelly McCarthy, Committee Administrator
Meeting Date	Tuesday, September 3, 2013	Phone	416-392-4666
Start Time	9:30 AM	E-mail	buc@toronto.ca
Location	Committee Room 1, City Hall	Chair	Councillor Frank Di Giorgio

Committee Decision
The Budget Committee recommends to the Executive Committee that: 1. City Council approve in-year budget adjustments to the 2013 Approved Capital Budget detailed in Appendix 2 to the report (August 19, 2013) from the Deputy City Manager and Chief Financial Officer and that the 2013 Approved Capital Budget be adjusted accordingly. 2. City Council receive for information Appendix 3 to the report (August 19, 2013) from the Deputy City Manager and Chief Financial Officer which lists capital projects/sub-projects that have been completed and are to be closed. 3. City Council authorize and direct the appropriate City Officials to take the necessary action to give effect thereto.