2013-05-01 Decision Letter - Budget Committee

The Budget Committee recommends to the Executive Committee that:

1. City Council approve a $1.059 million gross and $0 net increase to the Council approved Library capital budget for the Scarborough Civic Centre Library project, fully funded by a $0.659 million allocation from the City’s Land Acquisition Reserve Fund and $0.400 million from the Development Charges Reserve Fund;

2. City Council approve the following cash flow reallocations that have no impact on annual debt levels:

a. accelerate $0.220 million gross and debt cash flow from 2013 to 2012 to fund additional 2012 cash flow requirements for the Mount Dennis Branch project; and

b. defer $0.220 million gross and debt cash flow from 2012 to 2013 for the Multibranch State of Good Repair (SOGR) project.

The purpose of this report is to seek approval for capital budget adjustments for: (1) non-debt funding that has become available for the Scarborough Civic Centre Library; and (2) a cash flow deferral and acceleration that do not impact debt in order to match budget funding to actual expenditures at the end of 2012.

Scarborough Civic Centre

The Library’s capital funding for the Scarborough Civic Centre is being increased by $1.059 million gross and $0 net, funded by a $0.659 million allocation from the City’s Land Acquisition Reserve Fund and $0.400 million from the Development Charges Reserve Fund, which brings the total project budget to $9.856 million, as detailed in the table below:

2013 Capital Budget In-Year Adjustments ($000s)

	Pre-2013	2013	2014	2015	Project total
Scarborough Civic Centre Library
Council approved budget	1,392	2,385	3,883	1,137	8,797
Add funding: Land Acquisition Reserve Fund			659		659
Add funding: Development Charges			400		400
Revised Budget	1,392	2,385	4,942	1,137	9,856

There is no impact on the Council approved annual debt levels. As a result of these adjustments, the Toronto Public Library’s 2014 gross capital budget increases from $24.665 million to $25.724 million.

Cash Flow Reallocations

The Mount Dennis renovation project was slightly ahead of schedule in 2012, requiring the acceleration of $0.220 million cash flow available in 2013. To offset this cash flow advance, a cash flow deferral of $0.220 million from 2012 to 2013 from cash flow under-expenditures in the Multibranch SOGR project is required, as shown in the table below.

March 2013 Capital Budget In-Year Adjustments ($000s)

	2012	2013	Total
Change in timing of cash flows
Mount Dennis Renovation	220	(220)	-
Multibranch SOGR project	(220)	220	-
Budget change	-	-	-

The Director, Finance and Treasurer has reviewed this financial impact statement and is in agreement with it.

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 $1.059 million gross and $0 net increase to the Council approved Library capital budget for the Scarborough Civic Centre Library project, fully funded by a $0.659 million allocation from the City’s Land Acquisition Reserve Fund and $0.400 million from the Development Charges Reserve Fund; 2. City Council approve the following cash flow reallocations that have no impact on annual debt levels: a. accelerate $0.220 million gross and debt cash flow from 2013 to 2012 to fund additional 2012 cash flow requirements for the Mount Dennis Branch project; and b. defer $0.220 million gross and debt cash flow from 2012 to 2013 for the Multibranch State of Good Repair (SOGR) project.