Item - 2013.BU42.1

Tracking Status

This item was considered by Budget Committee on June 11, 2013 and was adopted with amendments.

BU42.1 - Operating Variance Report for the Year Ended December 31, 2012

Decision Type:: ACTION

Status:: Amended

Wards:: All

Committee Decision

That the Budget Committee recommends to the Executive Committee that:

1. City Council receive the item for information.

Origin

(May 23, 2013) Report from the Deputy City Manager and Chief Financial Officer

Summary

The purpose of this report is to provide Council with the City of Toronto Operating Variance for the year ended December 31, 2012 and allocation of the 2012 year-end under-spending.

The preliminary 2012 year-end operating position for Tax Supported Operations resulted in a net favourable variance of $248.183 million available for distribution after Council/Legislative Requirements are met. Consistent with the City Council's approved Surplus Management Policy, at least 75 percent of the surplus or $186.116 million of the 2012 final year-end operating results will be allocated to the Capital Financing Reserve and $62.067 million will be allocated to underfunded liabilities and/or reserve funds. In addition, Rate Supported Programs reported a year-end net favourable variance of $63.186 million.

It should be noted that the audit of the 2012 financial statements is not complete. As a result, there is a possibility that changes to the final surplus amount could occur but staff anticipate that any further adjustments will be minor in nature.

Background Information

(May 23, 2013) Report with Appendices A to D, from the Deputy City Manager and Chief Financial Officer on Operating Variance Report for the Year Ended December 31, 2012
https://www.toronto.ca/legdocs/mmis/2013/bu/bgrd/backgroundfile-59380.pdf

Speakers

Councillor Shelley Carroll
Councillor Gord Perks
Councillor Janet Davis
Councillor Adam Vaughan

Motions

1 - Motion to Waive the Rules moved by Councillor Frances Nunziata (Carried)

That questions of staff be limited to one round per Councillor.

2 - Motion to Amend Item moved by Councillor Doug Ford (Carried)

That the Budget Committee recommend to the Executive Committee that City Council receive the item for information.

Vote (Amend Item) Jun-11-2013

Result: Carried	Majority Required
Total members that voted Yes: 5	Members that voted Yes are Gary Crawford, Frank Di Giorgio, Doug Ford (Chair), Frances Nunziata, John Parker
Total members that voted No: 1	Members that voted No are James Pasternak
Total members that were Absent: 1	Members that were absent are Michelle Berardinetti

Declared Interests

The following member(s) declared an interest:

Councillor James Pasternak - as it pertains to the Toronto Public Library, as his spouse works for the Toronto Public Library.