April 21, 1998

   To:Strategic Policies and Priorities Committee

 From:City Clerk

 Subject:Previously Approved but Unstarted Capital Projects Further Report

 Recommendation:

 The Budget Committee on April 20, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (April 16, 1998) from the Chief Financial Officer and Treasurer.

 Background:

 The Budget Committee on April 20, 1998, had before it a report (April 16, 1998) from the Chief Financial Officer and Treasurer regarding the disposition of previously approved capital projects that were funded but not yet started.

 City Clerk

 Barbara Liddiard/rc/ay

Item No. 12

Attachment

 c.Chief Financial Officer and Treasurer

Chief Administrative Officer

Mr. Len Brittain, Finance Department

(Report dated April 16, 1998, addressed to the

Budget Committee from the

Chief Financial Officer and Treasurer)

 Purpose:

 To recommend the disposition of previously approved capital projects that were funded but not yet started.

 Financial Implications:

 For those projects which are being recommended for deletion and for which funding has been provided, the funds of $506 thousand can be applied to reduce the 1998 Capital Budget program borrowing level, currently recommended by the Budget Committee at $123 million (excluding Rapid Transit Expansion and rate supported programs).

 Recommendations:

 It is recommended that:

 1.the projects indicated with a >C= in Appendix A and B of this report be deleted;

 2.the current funding of $46 thousand from tax supported projects so identified in Recommendation #1 above be used to reduce the 1998 Capital Budget borrowing requirement;

 3. the debenture authorizations be canceled for projects so identified in Recommendation #1 above;

 4.the projects indicated with a >D= in Appendix A and B of this report be deferred for consideration with the 1999-2003 Capital Budget;

 5.the current funding of $460 thousand from tax supported projects so identified in Recommendation #3 above be used to reduce the 1998 Capital Budget borrowing requirement; and

 6.the balance of the projects be deemed to be started in 1998, be incorporated into the final 1998 Capital Budget, be referred to the respective service areas for further monitoring and be reported on a quarterly basis.

 Council Reference:

 At its meeting of January 26, 1998, the Budget Committee had before it a report (January 20, 1998) from the Chief Financial Officer and Treasurer entitled A1998 Capital Works Program - Preliminary Targets@. In considering that report, the Committee requested the Chief Financial Officer and Treasurer to respond to several motions regarding capital expenditures including a request for a report concerning unstarted capital projects. At its meeting of March 30, 1998 the Budget Committee had before it a report (March 30, 1998) from the Chief Financial Officer and Treasurer entitled APreviously Approved But Unstarted Capital Projects@. The Committee reviewed the enclosed list of such projects and recommended that a further report be provided that indicated, for each project, whether it could be canceled, deferred or proceed in 1998.

 Discussion:

 Appendix A and B contain the lists of previously approved tax and rate supported projects, respectively, which for a variety of reasons have not yet incurred any commitments. After discussions with the respective service areas, the disposition of these projects was determined as follows: (i) a >C= beside a project means that it can be canceled and the funds used to reduce borrowing, and (ii) a >D= beside a project means that the project can be deferred for consideration in the 1999-2003 Capital Budget and any allocated funding can be reapplied against future borrowing. For all the other projects on the lists, staff of the respective service areas advise that the projects will be proceeding in 1998.

 Conclusions:

 The quantum of funding which can be applied to the 1998 Capital Program by canceling and deferring previously authorized but unstarted projects is $506,000.

 Contact Name:

 Len Brittain, 392-5380; Fax: 392-3649; Internet: len_s._brittain@metrodesk.metrotor.on.ca