Item - 2021.BU33.2

The Budget Committee recommends that:

1. City Council direct that the 2019 operating surpluses totalling $30,309 from three Arenas (McCormick, North Toronto Memorial and Ted Reeve) be paid to the City of Toronto and be used, in part, to fund the cumulative operating deficit of $205,582 for four Arenas (George Bell, William H. Bolton, Forest Hill Memorial, and Moss Park), resulting in a net operating deficit of $175,273 to be funded by the City, as illustrated in Appendix A, column (g), to the report (September 24, 2021) from the Chief Financial Officer and Treasurer.

 
2. City Council direct that the funding provision from the 2019 Final Year-End Operating Budget Variance report of $100,143 be applied to the 2019 net deficit and a funding provision of $75,130 be made through the 2021 Year-End Operating Variance Report, as shown in the attached Appendix A, titled "2019 Program Summary", to the report (September 24, 2021) from the Chief Financial Officer and Treasurer.

On an annual basis, the City of Toronto receives the audited financial statements from various Arena Boards of Management. The financial statements allow the City to determine whether additional operating subsidy payments need to be provided to or clawed back from the Arenas to settle their operating deficits or surpluses.

This report recommends the settlement of seven of the Arenas' operating surpluses and deficits for 2019, based on audited financial results. At the time of preparation of this report, the audited financial statements for Leaside Memorial Community Gardens Arena was still in progress and therefore will be presented in a future report for consideration and approval purposes.

While normally the prior year end settlement reports for both Arena Boards and Association of Community Centres are submitted together to Council in the following year, the 2019 settlement reports were delayed due to delays in completing the Arena Board 2019 audits, and further delayed by the impact of COVID-19 on the City's 2020 priorities.