Item - 2020.BU19.10

The Budget Committee recommends that:

1. Budget Committee received the report (November 2, 2020) from the Chief Financial Officer and Treasurer for information.

This report summarizes the changes impacting the City of Toronto (the City)'s obligatory reserve funds (deferred revenues), reserves, and Council-directed reserve funds as at September 30, 2020.

The City's deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds are subject to annual changes based on funding contributions, transfers, and drawdowns, which are authorized by legislation, third-party agreements, and Council's approvals. The tables and appendices reflect information by major category.

As at September 30, 2020, the City recognized $7,239.9 million of deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds, which consist of the following balances:

- Committed funds for legislated, contractually bound or Council-directed activities ($6,166.7 million);

- Committed funds to offset capital costs and pressures on rate-based activities ($751.3 million); and

- Uncommitted and available funds for the City to respond to various unanticipated costs and to stabilize various funding sources, including the tax base ($321.9 million).

The reported balances include Council approved reserve and reserve fund loans that were granted to various agencies, City programs, and external parties, which must be repaid to the respective deferred revenues (obligatory reserve funds), reserves, and Council-directed reserve funds.