2013-05-01 Decision Letter - Budget Committee

The Budget Committee recommends to the Executive Committee that:

1. City Council approve a loan funded from the City's working capital to the George Bell Arena to replace and upgrade a de-humidifier unit in the amount up to $100,000, fully repayable by December 31, 2018 with the interest rate established by the Deputy City Manager and Chief Financial Officer and based upon the City's opportunity cost as if the funds had been invested for a 5 year term.

2. City Council approve a one-time budget adjustment to the 2013 Operating Budget for the Arena Boards of Management to include $100,000 in expenditures financed with a loan repayable over 5 years, to replace George Bell Arena’s dehumidification unit.

3. City Council request the Deputy City Manager and Chief Financial Officer to negotiate a loan agreement with the George Bell Arena Board of Management to retire the $100,000 loan no later than December 31, 2018 by using an annual equal payment calculated from a 5 year amortization schedule.

The purpose of this report is to recommend a $100,000 loan be provided to the George Bell Arena for the installation of a new dehumidifier which will expand service. This recommendation is being made in response to a request from George Bell Arena on April 3, 2013 for a loan to replace and upgrade its dehumidification unit. A review of the Arena's business plan indicates that the arena can generate sufficient revenues to repay this loan over 5 years.

Approval of this recommendation will result in a one-time increase to the 2013 Operating Budget for George Bell Arena (Arena Boards of Management) by $100,000 fully financed by a loan from the City to be repaid over 5 years. Also, the 2014-2018 Operating Budgets for George Bell Arena will need to include increased revenues and expenditures to reflect increased summer ice revenues and loan repayments.

Meeting No.	40	Contact	Kelly McCarthy, Committee Administrator
Meeting Date	Wednesday, May 1, 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 a loan funded from the City's working capital to the George Bell Arena to replace and upgrade a de-humidifier unit in the amount up to $100,000, fully repayable by December 31, 2018 with the interest rate established by the Deputy City Manager and Chief Financial Officer and based upon the City's opportunity cost as if the funds had been invested for a 5 year term. 2. City Council approve a one-time budget adjustment to the 2013 Operating Budget for the Arena Boards of Management to include $100,000 in expenditures financed with a loan repayable over 5 years, to replace George Bell Arena’s dehumidification unit. 3. City Council request the Deputy City Manager and Chief Financial Officer to negotiate a loan agreement with the George Bell Arena Board of Management to retire the $100,000 loan no later than December 31, 2018 by using an annual equal payment calculated from a 5 year amortization schedule.