Item - 2019.BU12.3

The Budget Committee recommends that: 

1.  Executive Committee receive the report (November 22, 2019) from the Chief Financial Officer and Treasurer for information.

This report provides information on reserve and reserve fund balances as at September 30, 2019.  The transfers made into and out of reserve and reserve funds are based on amounts approved by Council during the 2019 or prior year budget processes, or on an ad hoc basis throughout the fiscal year. The tables and appendices reflect information by major reserve and reserve fund category.

The reported balances include Council approved loans, granted under various City programs, which must be repaid to the reserves or reserve funds.

It is important to note that 82 percent ($5.6 billion) of the $6.8 billion of Reserve and Reserve Funds, as at September 30, 2019, represent obligatory and Council directed reserve funds. $851.9 million, of the remaining $1.2 billion, is committed to offset capital costs and pressures on rate-based activities. The remaining reserve and reserve fund balances of $322.6 million are available for various unanticipated costs and to stabilize various funding sources including the tax base. The adequacy review of the major reserve and reserve fund balances conducted by an external consultant is expected to be delivered in Fourth Quarter of 2019.