2014-05-01 Decision Letter - Budget Committee

The purpose of this report is to provide Council with the 2014 Capital Variance Report for the three month period ended March 31, 2014 as well as projected actual expenditures to December 31, 2014. Furthermore, the report seeks Council’s approval for 2014 in-year budget adjustments and carry-forward funding adjustments to the 2014 Approved Capital Budget.

This report also provides a list of 112 completed capital projects to be closed including the total number and value of projects' under and over expenditures. $380.602 million in projects are ready to be closed and have been completed under budget, with savings of $17.410 million. These savings will be returned to their original funding sources, including a savings of $10.736 million in debt funding.

Capital expenditures for the three months ended March 31, 2014 totalled $256.530 million or 6% of the 2014 Approved Capital Budget of $4.269 billion (see Chart 1). This spending pattern is consistent with prior years as first quarter capital activity is typically more preparatory, with less expenditure actually in the first quarter occurring than in the reminder of the year. As detailed by City Program and Agency in Appendix 1, actual expenditures to year-end are expected to reach $3.415 billion or 80% of the total 2014 Approved Capital Budget; 22 of 32 City Programs and Agencies are projecting spending in excess of 70% by year-end: Tax Supported Programs project a spending rate of 79.7% to year-end; while Rate Supported Programs project year-end spending rate of 81.5%.

(Please see Table 1 of the Report dated April 14, 2014 from the Deputy City Manager and Chief Financial Officer)

Committee Decision
The Budget Committee recommends to the Executive Committee that: 1. City Council approve in-year budget adjustments to the 2014-2023 Approved Capital Budget and Plan detailed in Appendix 2 to the report (April 14, 2014) from the Deputy City Manager and Chief Financial Officer, with no incremental impact on debt funding. 2. City Council approve reduction of $2.923 million in previously approved carry forward funding for Toronto Police Services as detailed in Appendix 3 to the report (April 14, 2014) from the Deputy City Manager and Chief Financial Officer, and that 2014 Approved Capital Budget be adjusted accordingly. 3. City Council receive for information Appendix 4 to the report (April 14, 2014) from the Deputy City Manager and Chief Financial Officer, which lists 112 capital projects/sub-projects that have been completed and are to be closed with a total combined project budget saving of $17.410 million, including savings of $10.736 million in debt funding. 4. City Council authorize and direct the appropriate City Officials to take the necessary action to give effect thereto.