Item - 2013.EX31.14

City Council on May 7, 8, 9 and 10, 2013, adopted the following:

1.         City Council grant authority to establish a Doubtful Loan Guarantee Reserve for the purpose of providing a source of funding for any shortfalls or defaults in interest and/or principal payments by an organization under which the City has provided a loan guarantee or loan, such draws and payments to be made at the discretion of the Deputy City Manager and Chief Financial Officer, as further described in Attachment 1 to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer, and that the City of Toronto Municipal Code Chapter 227 (Reserves and Reserve Funds), Schedule 1, Corporate Reserves, be amended to add this reserve.

2.         City Council request the Deputy City Manager and Chief Financial Officer to review annually the adequacy of funds in the Doubtful Loan Guarantee Reserve, and to make any necessary adjustments at year end where the cost or risk of loss under a loan guarantee or direct loan is determined to be likely and should be recognized.

3.         City Council, in the event that the City is obligated to make payment as a result of a default under a loan guarantee or direct loan:

a.         authorize the Deputy City Manager and Chief Financial Officer to fund the immediate legal obligations of the City; and

b.         direct that the responsible program area report to the next available Executive Committee meeting on the circumstances of the default.

4.         City Council adopt the consolidated and amended Line of Credit Guarantee Policy contained in Attachment 2 to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer.

5.         City Council adopt the consolidated and amended Capital Loan Guarantee Policy contained in Attachment 3 to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer.

6.         City Council adopt the consolidated and amended Direct City Loan Policy contained in Attachment 4 to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer.

7.         City Council, with respect to the default by the Toronto Philharmonia of a loan guaranteed by the City, and the payment in the amount of $249,479.16 made by the City to the lender in November 2010, which payment has been written off:

a.         Request the Toronto Arts Council to return funds to the City in the amount of $112,800, which was provided by the City to the Toronto Arts Council as grants for the Toronto Philharmonia for the years 2010-2012, which is currently being held in reserve by the Toronto Arts Council;

b.         Request the Toronto Arts Council to pay $37,600 per year to the City’s Doubtful Loan Guarantee Reserve, starting in 2013, until the principal of the Toronto Philharmonia loan is recovered by the City; and

c.         Direct that the amount of $112,800 referred to in the Part 7.a. above, once received, be placed in the Doubtful Loan Guarantee Reserve established by Part 1 above.

8.         City Council write off the capital loan to Squirrel's Nest Child Care Centre in the amount of $121,808, against the existing - Allowance for Doubtful Accounts – Former City of Scarborough (Squirrel's Nest) which has a provision in the same amount, thus resulting in no net financial impact.

9.         City Council adopt the confidential instructions to staff in Attachment 5 – Confidential Information, to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer.

10.       City Council not authorize the public release of Attachment 5 – Confidential Information, to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer, as this attachment contain confidential information relating to litigation or potential litigation that could affect the City.

Confidential Attachment 5 to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006 as it pertains to litigation or potential litigation that could affect the City.