Item - 2022.TA20.2

The Board of Directors of the Toronto Atmospheric Fund:

1.  Approved the 2023 Consolidated Operating Budget as presented in Attachment 1 to the report (October 20, 2022) from the Director of Finance, Toronto Atmospheric Fund.

Toronto Atmospheric Fund’s 2023 Operating Budget is presented for Board consideration and approval. This is a balanced and self-financed budget, with zero impact on the City’s budget.

Revenue for 2023 has been budgeted based on: a projected annual return on the marketable securities portfolio which the Investment Committee considers appropriate; the expected returns on the current book of direct investments and estimated return on additional direct investments during the course of the year; and committed external funding, which has significant potential to be exceeded. The portfolio revenues are lower than 2022 as the net asset value has been eroded due to current market conditions, but the external revenues are higher due to TAF’s success in attracting support for various projects.

Expenditures budgeted for 2023 are based on: the projected revenues including investment proceeds and external funds, with attention to the minimum grant and maximum administrative expense requirements and compliance with the Payout Ratio established to protect the endowments.

The 2023 Annual Plan to advance climate solutions for the Greater Toronto and Hamilton Area (GTHA) will be presented to the Board at the first meeting of 2023 and will be crafted in keeping with the approved 2023 Operating Budget.