City of Toronto Logo Decision Letter

 



Budget Committee


Meeting No. 53   Contact Kelly McCarthy, Committee Administrator
Meeting Date Wednesday, March 26, 2014
  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  

BU53.5 

ACTION

Adopted 

 

Ward:All 

2013 Year-End Capital Adjustments, Carry-Forward Funding Adjustments to the 2014 Approved Capital Budget and Project Closures
Committee Decision

The Budget Committee recommends to the Executive Committee that:

 

1.         City Council approve additional carry forward funding of $479.659 million from unspent capital expenditure as detailed in Appendix 1 of the report (March 12, 2014) from the Deputy City Manager and Chief Financial Officer, in order to continue work on previously approved capital projects, and that the 2014 Approved Capital Budget be adjusted accordingly with no incremental impact on debt.

2.         City Council approve budget adjustments to the 2013 Approved Capital Budget for various City Programs and Agencies without impact on debt as detailed in Appendix 2 of the report (March 12, 2014) from the Deputy City Manager and Chief Financial Officer.

3.         City Council receive for information Appendix 3 of the report (March 12, 2014) from the Deputy City Manager and Chief Financial Officer, which lists 155 capital projects/sub-projects that have been completed and are to be closed with a total combined project budget saving of $145.749 million.

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

Origin
(March 12, 2014) Report from the Deputy City Manager and the Chief Financial Officer
Summary

The purpose of this report is to seek Council's approval for 2013 in-year capital budget adjustments and carry-forward funding adjustments to the 2014 Approved Capital Budget of $479.659 million. The recommended carry forward funding adjustments are in compliance with the City's Carryforward Policy and have no impact on the City's debt levels.

 

This report also provides a list of 155 completed capital projects to be closed including the total number and value of projects under and over expenditures. $1.315 billion in projects are ready to be closed and have been completed under budget, with saving of $145.749 million. These savings will be returned to their original funding sources, including a savings of $70.130 million in debt funding.

Financial Impact

Approval of the additional carry forward funding of $479.659 million recommended in this report increase the total 2014 carry forward funding from $971.281 million to $1.451 billion with no debt impact. Recommended incremental carry forward funding will increase the 2014 Approved Capital Budget from $3.784 billion to $4.264 billion. The total additional carry forward funding of $1.451 billion represent 35% of the 2013 Approved Capital Budget. Recommended carry forward funding adjustments total $444.050 million for 2013 approved capital projects and $35.609 million for 2012 and prior year capital projects. 2012 and prior years recommended carry forward adjustments funded by debt were offset by 2014 approved cash flow deferrals that have an equivalent debt value in order to not impact approved debt funding levels.

 

Approval of the recommended 2013 budget adjustments does not have financial impact on the total 2013 Approved Capital Budget. The recommended budget adjustments have been offset by under spending in other projects/subprojects, as well as accelerations and deferrals.

 

Toronto Water requested 2013 budget adjustments detailed in a stand-alone accompanying report entitled "Toronto Water 2013 Year-End Capital Budget Adjustments and Accelerations / Deferrals". Toronto Water has reduced the contingency amounts for multi-year sub-projects that have reached substantial completion in 2013. As a result, funding contributions required from Toronto Water Capital Reserve Funds have been reduced by an equivalent amount of $27.972 million

 

Fully completed capital projects to be closed at year-end have a total under spending of $145.749 million. Closure of these projects will avoid debt borrowing in the amount of $70.130 million, return $20.468 million to reserve and reserve funds funding and $55.150 million to other funding sources such as third party funding, federal subsidies, provincial grants and donations.

Background Information
(March 12, 2014) the Deputy City Manager and the Chief Financial Officer on 2013 Year-End Capital Adjustments, Carry-Forward Funding Adjustments to the 2014 Approved Capital Budget and Project Closures
(http://www.toronto.ca/legdocs/mmis/2014/bu/bgrd/backgroundfile-67588.pdf)

(March 12, 2014) Appendix 1 - 2013 Carry Forward Funding Adjustments
(http://www.toronto.ca/legdocs/mmis/2014/bu/bgrd/backgroundfile-67866.pdf)

(March 12, 2014) Appendix 2 - 2013 In-Year capital Budget Adjustments
(http://www.toronto.ca/legdocs/mmis/2014/bu/bgrd/backgroundfile-67839.pdf)

(March 12, 2014) Appendix 3 - Capital Projects to be closed
(http://www.toronto.ca/legdocs/mmis/2014/bu/bgrd/backgroundfile-67840.pdf)