HomeMy WebLinkAboutCS 08-04PICKERING
REPORT TO
EXECUTIVE COMMMITTEE
Report Number: CS 08-04
Date: May 13, 2004
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: 2003 Pre-Audit Balances of Reserves and Reserve Funds
Recommendation:
1. It is recommended that Report CS 08-04 of the Director, Corporate Services &
Treasurer be received; and that:
2. the appropriate officials of the City of Pickering be authorized to take the necessary
actions to give effect thereto.
Executive Summary: Based on the preliminary 2003 results, we can now report on
the pre-audit actual activities within the Reserves and Reserve Funds for 2003. A
summary is presented in Appendix A.
The purpose and 2003 financial transactions for each Reserve and Reserve Fund are
set out in Appendices B and C respectively.
Financial Implications: Not applicable
Background: As in previous reports filed over the last four years, this report
provides specific information on each of the City's Reserves and Reserve Funds,
including year-end balances. The 2003 pre-audit Reserves and Reserve Funds
balance of $37,375,685 is one of the highest balances ever reported in Pickering.
However, this balance is not fully available for use due to the outstanding commitment
of funds not yet spent, the obligations connected with the collection of funds or other
specific purposes approved by Council or under Provincial Legislation.
With regards to unspent commitments for capital projects, we are continuing the
practice of not transferring funding for commitments until the expenses are incurred.
This procedure allows the reserve funds to earn interest income as long as funds are
still in the reserve fund's custody and is in compliance with PSAB for obligatory Reserve
Funds. The combined unspent commitments for all reserve funds are $2,495,632.
Report CS 08-04 Date: May 13, 2004
Subject: 2003 Pre-Audit Balances of Reserves and Reserve FundsPage 2
From 2001 to 2002, the City's share of collections from OPG related to properties under
assessment appeal were $5,294,967 and in 2003 an additional amount of $1,260,511
was collected bringing a combined value of $6,555,478 provided in the Contingency
Reserve pending final decision of this appeal. At this time, we are still unable to confirm
the availability of these monies for corporate purposes. In the meantime, these funds
are being used for the temporary financing of the Don Beer Arena expansion with the
balance being invested.
The newly created Third Party/Developer Contributions Reserve Fund represents funds
received for specific purposes based on developer agreements or agreements with any
third parties. Funds available in this reserve fund are obligatory in nature and should be
treated as committed. The balance in this new reserve fund is $1,024,690.
The City established two new reserve funds this year:
Contributions Reserve Fund and Squash Courts Reserve Fund.
reserve funds is discussed further in Appendix C.
Third Party/Developer
The purpose of these
The combined total of the unspent commitments, OPG assessment appeal, and Third
Party/Developer Contributions Reserve Fund of $10,075,801, brings the balance of
Reserves and Reserve Funds not committed to $27,299,884 as at December 31, 2003.
Other commitments such as legislative requirements and internal borrowings reduce the
"discretionary" balance to approximately $5.8 million.
Internal Borrowings from the Reserve Fund commenced in 2001, to assist in funding
Capital Projects. Although the amount borrowed each year has declined, the
outstanding principal balance at December 31, 2003 is approximately $7 million. This
provided the Reserve Funds with an attractive rate of interest compared to current
market investment rates while at the same time providing a cheaper cost of borrowing to
the Capital Fund. However, these Reserve Funds are at their maximum limit for
providing funds to capital project financing.
Interest earned on internal loans represents amounts earned on the 2001 and 2002
internal borrowings. Repayment for 2003 internal borrowings will commence in 2004
and interest earned will be reflected accordingly.
Attachments:
1. Appendix A
2. Appendix B
3. Appendix C
Summary of Reserves and Reserve Funds
Description of Reserves
Description of Reserve Funds
Report CS 08-04 Date:
Subject: 2003 Pre-Audit Balances of Reserves and Reserve Funds
May 13, 2004
Page 3
Prepared By:
Approved / Endorsed By:
Caryn Kong
Senior Financial Analyst
Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City C.~o~ncil
___---.. ~, ~,.~- ~ --
T,h~r~a'~ J:euir~, Chief(~dministrat~c. er/
,~TTACHMENI~# I TOKEPORT#¢-~c,~'P't/-
APPENDIX A
CITY OF PICKERING
SUMMARY OF RESERVE AND RESERVE FUND PRE-AUDIT ACTUALS
DECEMBER 3J, 2003
Pre Audit Audited Audited Audited
Appendix B Summary Reserves 2003 2002 2001 2000
4610 Working Funds 400,000 400,000 400,000 841,350
4611/4623 Replacement Capital 730,713 615,800 1,083,837 2,153,816
4612 Contingencies (2) 7,813,558 6,791,047 5,277,795 1,371,295
4613 Self-Insurance (2) 940,514 949,106 972,489 776,410
4619 Rate Stabilization 2,177,209 2,421,909 2,104,410 249,139
4620 Develop. Charges-City's Share (2) 2,685,297 2,812,214 2,765,000 1,889,000
4621 Region Transit (2) 1,106,634 1,242,507
4622 Continuing Studies (2) 141,884 67,400
Total Reserves 15,995,809 15,299,983 12,603,531 7,281,010
Appendix C Summary of Reserve Funds
Pre Audit Audited Audited Audited
2003 2002 2001 2000
4225 Community Facilities 386,726 352,423 69,102
4227/9 Development Charges (1)(2) 15,804,668 12,866,749 10,393,615
4228 Capital Works 535,849 516,013 499,540
4230 Parkland (1)(2) 1,959,087 2,017,875 2,622,150
4232 Public Works 1,465,425 1,400,169 1,365,285
4233 Pickering Baseball Assoc (closed) 1,228
4234 Workers Safety Insurance Brd (2) 181,023 176,974 7,232
4235 Third Party/Dev. Contributions (1)(new) 1,024,691
4236 Ontario Transit Renewal (1) 14,957 402,939
4237 Squash Courts (2)(new) 7,450
Total Reserve Funds
Total Reserves & Reserve Funds
282,569
7,586,550
850,630
3,875,813
1,304,410
60,789
21,379,876 17,733,142 14,958,152 13,960,761
37,375,685 33,033,125 27,561,683 21,241,771
Notes (1) Obligatory
(2) Committed
i~, ~. 1 ^CHMEN7
APPENDIX B
RESERVE FOR WORKING FUNDS 4610
TO REPORT
Actual Balance December 31, 2002
Transfers into the Reserve
Transfers out of the Reserve
Pre Audit Actual Balance December 31, 2003
$ 400,000
$ 400,000
Purpose of this Reserve:
The reserve for working funds is used to provide operating cash to assist in
avoiding shod term interest expenses incurred on operations, typically during the
first months of the year prior to tax billing and at other times when cash inflows
and outflows do not match as occurs in any corporation.
The interest income on these funds form pad of the annual Current Budget
General Government Revenue.
w
Recommended Maintenance Levels of the Reserve:
It is recommended as a "rule-of-thumb" that this reserve be 2% to 3% of total City
revenues.
APPENDIX B
RESERVE FOR REPLACEMENT OF CAPITAL EQUIPMENT - G/L 4611/4623
Actual Balance December 31, 2002
Transfers into the Reserve
Revenue Fund Contribution
Transers out of the Reserve
Transfer to Capital Fund - Parks, Comm. Ctr,
Corp. Efficiency, Fire, Print/Mail Room
Pre-Audit Actual Balance December 31, 2003
$ 615,800
211,260
(96,347)
$ 730,713
Purpose of this Reserve:
The purpose of this reserve is to reduce the need to levy for the full cost of major
equipment in the year of acquisition. The reserve acts as a stabilization factor
and helps to avoid both tax rate fluctuations and the issuance of long term debt
or other means of financing.
The interest income on these funds form part of the annual Current Budget
General Government Revenue.
Recommended Maintenance Levels of this Reserve:
This reserve should be kept at a level that is equivalent to the replacement cost
of the assets for which they were established. Over the last couple of years, the
reserve balance has been kept at a minimum level.
Contributions to this Reserve are provided for annually in the Current Budget. In
2003, additional sub-categories were set up for accounting purposes to better
match the collection of funds to the application of these funds to particular
facilities as shown on the following page.
APPENDIX B
The balances pertaining to these sub-categories are as follows:
REPLACEMENT OF CAPITAL EQUIPMENT - SUB CATEGORIES
General Recreation Dunbarton Don Beer Rec Comp Rec Comp Rec Comp
Corp Use Prgrms Pool Arena Core Pool Arena
$ $ $ $ $ $ $
Total
$
Dec 31/02 269,000 24,810 2,500 10,893 106,312 202,285 615,800
Transfer in 111,260 - 30,000 25,000 15,000 30,000 211,260
Transfer out (96,347) -
- (96,347)
Dec 3'1103 172,653 111,260 24,810 32,500 35,893 121,312 232,285 730,713
APPENDIX B
RESERVE FOR CONTINGENCIES - G/L 4612
Actual Balance December 31, 2002
Transfers into the Reserve
Revenue re OPG Assmt. Appeal Properties
Transfers out of the Reserve
Transfer to Revenue Fund - Assessment Appeals
Transfer to Revenue Fund - Election
Pre-Audit Actual Balance December 31, 2003
(95,000)
(143,000)
$ 6,791,047
1,260,511
(238,000)
$ 7,813,558
Purpose of this Reserve:
Like the capital equipment replacement reserve, this reserve acts in a tax
stabilization capacity. It was established in anticipation of unknown, unusual or
extraordinary expenditures which occur from time to time.
The interest income on these funds form part of the annual Current Budget
General Government Revenue.
Recommended Maintenance Levels of this Reserve:
In 2003, the large contributions in this Reserve were reviewed and grouped into
sub-categories in the General Ledger, for accounting purposes only, to better
distinguish those amounts that are committed and those amounts available for
general corporate use. The sub-categories are as follows: OPG Assessment
Appeal, Elections, Other Assessment Appeals and Miscellaneous.
The transfer regarding Ontario Power Generation (OPG) in the amount of
$1,260,511 for the current year is the City's revenue for properties currently
under assessment appeal. This amount plus the last two years' contributions of
$5,294,967 result in a combined total of $6,555,478. The availability of these
funds is undeterminable as the appeal is still outstanding and is considered
committed in the event repayment must be made.
The amounts pertaining to the other sub-categories are as follows: Election - nil;
Other Assessment Appeals - $682,594 and Miscellaneous - $575,486.
APPENDIX B
RESERVE FOR SELF INSURANCE - G/L 4613
Actual Balance December 31, 2002
Transfers into the Reserve
$ 949,106
Transfers out of the Reserve
Transfer to Capital - Insurance Claim for Roads
Pickup Truck
Pre-Audit Actual Balance December 31, 2003
(8,592)
$ 940,514
Purpose of this Reserve:
This reserve was established as a necessary form of asset protection.
Specifically, it is to cover insurance claims resulting from the increase in
deductible levels, costs of uninsured claims and other claim related costs. The
higher deductible reduced insurance premiums. Significant savings can be
realized through reduced premium costs and staff analyze the costs/benefits of
such actions on an annual basis.
The interest income on these funds form part of the annual Current Budget
General Government Revenue.
Recommended Maintenance Levels of this Reserve:
This reserve should be maintained at a level to ensure that the funding is
adequate to meet future liabilities. This situation is analyzed by staff on a regular
basis. In 2003, the actual cost incurred to replace a truck under the Roads
division due to a fire incident exceeded the insurance proceeds by $8,592. A
draw from this reserve was necessary to meet the over-expenditure.
APPENDIX B
RESERVE FOR RATE STABILIZATION - G/L 4619
Actual Balance December 31, 2002
Transfers into the Reserve
Excess Surplus Contribution
Transfers out of the Reserve
2003 Current Budget Provision
Pre-Audit Actual Balance December 31, 2003
$ 2,421,909
674,300
(919,000)
$ 2,177,209
Purpose of this Reserve:
The purpose of this reserve is to act as a tax rate stabilization factor for annual
current budget funding.
The interest income on these funds form part of the annual Current Budget
General Government Revenue.
m
Recommended Maintenance Levels of this Reserve:
The fund balance should be maintained at a level of 3 to 5 per cent of tax
revenues to provide tax rate stabilization for annual current budgeting purposes.
The 2003 Current Budget provided for a transfer in the amount of $919,000 from
this Reserve to fund current expenditures. The 2003 operating surplus of
$674,300 has been transferred to this reserve, resulting in a pre-audit balance of
$2,177,209.
APPENDIX B
RESERVE FOR DEVELOPMENT CHARGES - CITY SHARE GIL 4620
Actual Balance December 31, 2002
Transfers into the Reserve
2003 Current Budget Provision
Transfers out of the Reserve
Transfer to Capital Fund
External Subdivision Works
Pre-Audit Actual Balance December 31, 2003
$ 2,812,214
1,000,000
(1,126,917)
$ 2,685,297
Purpose of this Reserve:
This reserve has been established to set aside funds for projected growth in the
City. From the 1999 Development Charges Study it was approved that a
Reserve be established for the City's share (i.e. the non-development charge
portion) of the costs of services included in the Development Charges Study and
that contributions be included in the annual Current Budget for consideration by
Council. For the City to meet its obligations for the various capital projects an
annual contribution of $2.4 million is required.
The interest income on these funds form part of the annual Current Budget
General Government Revenue.
Recommended Maintenance Levels of this Reserve:
Funds continue to be budgeted in the Current Budget to build up this reserve to
fund future caPital growth of the City. The draws in the current year were to
finance external subdivision works. This reserve should be maintained at a level
to ensure that the funding is adequate to meet future capital growth in the City.
APPENDIX B
TRANSIT RESERVE - G/L 4621
Actual Balance December 31, 2002
Transfers into the Reserve
GO Transit Funding from Region
Transfers out of the Reserve
APTA Current Expenditures
APTA Capital Expenditures
Pre-Audit Actual Balance December 31, 2003
,242,507
,515,700
$ (383,902)
(1,267,671) (1,651,573)
$ 1,106,634
Purpose of this Reserve:
This reserve fund was established in 2002 to capture funds raised by the Region
for transit purposes and not immediately required.
The interest income on these funds form part of the annual Current Budget General
Government Revenue.
Recommended Maintenance Levels of this Reserve:
Transfer into the Reserve represents funding of $1,515,700 received from the
Region of Durham. Funds were transferred out of this reserve to finance the
2003 Current & Capital operations of Ajax Pickering Transit Authority (APTA).
This included $383,902 for maintenance and transitional expenses and
$1,267,671 for capital purposes bringing the net funds available of $1,106,634 as
at year-end December 31,2003. The amount of the unspent commitments at the
end of 2003 is $290,957. Taking these unspent commitments into account, the
uncommitted balance available at December 31, 2003 will be $815,677.
The balance of this Reserve is expected to be used to finance APTA Capital
Budget and City related transit costs in 2004.
APPENDIX B
RESERVE FOR CONTINUING STUDIES & CONSULTING - G/L 4622
Actual Balance December 31, 2002
Transfers into the Reserve
Continuing Consulting Work or Studies
Transfers out of the Reserve
67,4OO
74,484
Pre-Audit Actual Balance December 31, 2003
$ 141,884
Purpose of this Reserve:
This reserve was established to capture any unspent annual Current Budget
provisions related to consulting, continuing studies, professional and legal fees.
Under Generally Accepted Accounting Principles, the approval to expend funds
for these efforts ceases at year-end, however work may continue beyond that
date. The establishment of this fund enables the transfer of unspent funds into
future year and accommodates this frequent timing difference between the
approval and the expenditure.
The interest income on these funds form part of the annual Current Budget General
Government Revenue.
Recommended Maintenance Levels of this Reserve:
There would be no recommended maintenance levels. Funds transferred to this
reserve will be used to fund the balance of the expenditures still to be incurred for
incomplete studies or consulting contracts.
No expenditures were incurred in 2003 pertaining to amounts for consulting work
or continuing studies that were transferred into the Reserve in the prior year.
'~,]'T'ACH~EN'!~ # ,~ TO REPORT#~p- ~,~
APPENDIX C
RESERVE FUND FOR COMMUNITY FACILITIES - G/L 4225
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Capital Fund - Return to Source
Interest Earned on External Investments
Transfers out of the Reserve Fund
Transfer to Capital Fund - Community Ctres
Pre-Audit Actual Balance December 31, 2003
$ 352,423
$ 23,139
13,503 36,642
(2,339)
$ 386,726
Purpose of this Reserve:
This is a "discretionary" reserve fund established by Council to attempt to avoid
both tax rate fluctuations and the need for issuing long term debt for major
expenditures required for community facilities.
The interest income on these funds form part of the Reserve Fund as per the
Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve:
The balances in this fund have fluctuated from the 2001 year Iow of $69,102 to
the high in 1998 of $773,483. Other than funds from cancelled capital projects
being returned to source and interest income earned, there was no additional
transfer to this reserve fund in 2003.
Expenditures are transferred out of reserve funds only when incurred, therefore
the amount committed but not incurred at end of 2003 is $20,883. Taking these
commitments into consideration, the uncommitted balance of funds available is
$365,843. Additional amounts must be provided to this fund.
APPENDIX C
RESERVE FUND FOR DEVELOPMENT CHARGES - G/L 4227~4229
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Net Developer Contributions
Interest Earned on External Investments
Interest Earned on Internal Loans
Transfers out of the Reserve Fund
Transfer to Revenue Fund - Develop. Charge Study
Transfer to Capital Fund
Roads
Corp. Service - Master Financing Plan
External Subdivision Works
Pre-Audit Actual Balance December 31, 2003
$ 2,814,824
280,408
383,842
(145,499)
(9,431)
(376,198)
$ 12,866,749
3,479,074
(10,027)
(531,128)
$ 15,804,668
m
Purpose of this Reserve:
This is an "obligatory" reserve fund and as such is governed by Provincial
legislation, regulation, City By-law or agreement and requires revenue received
for the special purposes to be segregated from the general revenues of the
municipality. Obligatory reserve funds must be created whenever a statute
requires revenue received for a special purpose to be segregated from the
general revenues of the municipality and the revenue is to be used solely for the
purpose prescribed by statute, i.e. in this case the monies charged to developers
must be held and used to fund capital services required for new growth.
The interest income on these funds form part of the Reserve Fund as per the
Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve:
In accordance with development charge legislation, all development charge
revenue must be held within separate reserve funds and can only be used for the
financing of growth-related projects. As such, no reserve fund limits are
appropriate for development charge reserve funds because they are tied to
growth-related capital requirements.
This reserve fund has unspent commitments of $2,137,590. The pre-audit actual
balance of $15,804,668 would be reduced by this amount to reflect an
uncommitted balance of funds available of $13,667,078.
APPENDIX C
RESERVE FUND FOR CAPITAL WORKS - G/L 4228
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Third Party Contributions
Interest Earned on External Investments
Transfers out of the Reserve Fund
$ 516,013
$ 863
18,973 19,836
Pre-Audit Actual Balance December 3'1, 2003
$ 535,849
Purpose of this Reserve:
This Fund is a "discretionary" one and was established pursuant to section
417(1 )(2) of the Municipal Act, 2001 for specified purposes by Council related to
the acquisition of assets.
The interest income on these funds form part of the Reserve Fund as per the
Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve Fund:
Between the years of 1998 to 2000, the balances have been maintained at
$600,000 to $800,000. There has been no major contribution to this Reserve
Fund in the past three years. The value of the unspent commitments at the end
of 2003 is $13,822. Taking these unspent commitments into account, the
uncommitted balance available at December 31, 2003 will be $522,027. Major
additional contributions will be required in future years.
APPENDIX C
RESERVE FUND FOR PARKLAND - G/L 4230
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Developers Contributions
Interest Earned on External Investments
Interest Earned on Internal Loans
Transfers out of the Reserve Fund
Transfer to Capital Fund
Parks Development
Playground Equipment
Purchase of Land - 670 Front St.
Pre-Audit Actual Balance December 31, 2003
$ 301,958
52,916
45,725
$ (14,980)
(384,407)
(60,000)
$ 2,017,875
400,599
(459,387)
$ 1,959,087
Purpose of this Reserve Fund:
This is an "obligatory" reserve fund and it was established pursuant to section
417(1)(2) of the Municipal Act, 2001 as required by subsections 42(1), (5), (6),
(7), (8) and (9) of the Planning Act. This fund is governed by legislation,
regulation or agreement and requires revenues received for the special purposes
to be segregated from the general revenues of the municipality. Obligatory
reserve funds must be created whenever a statute requires revenues for a
special purpose to be segregated from the general revenues of the municipality
and the revenue is to be used solely for the purpose prescribed by statute.
The interest income on these funds form part of the Reserve Fund as per the
Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve Fund:
Due to the obligatory nature of this fund, there are no limits on this fund. The
value of the unspent commitments at end of 2003 is $263,610. The pre-audit
balance of $1,959,087, taking into account the unspent commitments, will
previde an uncommitted balance available of $1,695,477 as at December 31,
2003.
APPENDIX C
RESERVE FOR PUBLIC WORKS - G/L 4232
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Developer Contributions
Interest Earned on External Investments
29,068
51,447
$ 1,400,169
80,515
Transfers out of the Reserve Fund
Transfer to Capital Fund - Property Maint. And
External Subdivision Works
Pre-Audit Actual Balance December 31, 2003
(15,259)
$ 1,465,425
Purpose of this Reserve Fund:
This fund was established by Council pursuant to section 417(1)(2) of the
Municipal Act, 2001. The purpose of the reserve fund is to acquire fixed assets,
e.g. storm sewers, without the need to fund on a long term nature through the
issue of debentures. The main purpose at this time is to fund the City's share of
the cost of subdivision works committed to under various subdivision
agreements.
The interest income on these funds form part of the Reserve Fund as per the
Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve Fund:
The "average" annual balance of this fund over the last four years has been
approximately $1.38 million. This reserve fund should be kept at least at this
level in the future. Staff will periodically review the need for this level with the
requirements contained in the capital budget and four year program and report
any different findings to Council.
The value of unspent commitments for 2003 is $59,726. The pre-audit balance of
$1,465,425 after taking into account the unspent commitments will provide an
uncommitted balance of funds available at $1,405,699 as of Dec. 31,2003.
APPENDIX C
RESERVE FUND FOR WORKERS SAFETY INSURANCE BOARD - G/L 4234
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Contribution from Current Fund
Interest Earned on External Investments
Transfers out of the Reserve Fund
Claims and Other Related Costs
Insurance Costs
Contribution to Health & Safety Program
Pre-Audit Actual Balance December 31, 2003
$ 285,902
7,555
$ (228,008)
(57,728)
(3,672)
$ 176,974
293,457
(289,4O8)
$ 181,023
Purpose of this Reserve Fund:
This Reserve Fund has been established to provide for the annual costs of
insurance coverage, contributions towards the health and safety program, and
the payment of claims and other related costs now that the City is a Schedule 2
employer. This Reserve Fund was created in 2001 further to the
recommendation passed in Council Resolution#127/01 and in compliance with
Workplace Safety & Insurance Act.
The interest income on these funds form part of the Reserve Fund as per the
Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve Fund:
In 2003, claims experience approximates the contributions thereby severely
limiting the increase in the balance of the Reserve Fund.
As Schedule 2 operates on the self-insured principle, for 2004 the anticipated
savings between contributions and claims experience will be transferred to this
Reserve Fund to build up the fund balance in the event of any catastrophic claim-
related costs, which may occur. Should that be insufficient, additional funding
may have to be considered in the 2005 budget.
APPENDIX C
THIRD PARTY/DEVELOPERS CONTRIBUTIONS RESERVE FUND -GIL 4235
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Contributions from Developers/Third Parties
Interest Earned on External Investments
Transfers out of the Reserve Fund
Pre-Audit Actual Balance December 3'1, 2003
$ Nil
$ 1,015,807
8,884 1,024,691
$ 1,024,691
Purpose of this Reserve Fund:
This reserve fund was established by Council pursuant to Section 417(1) of the
Municipal Act, 2001. The purpose of this reserve fund is to capture contributions
from developers or third parties per development agreements or cost sharing
arrangements for future capital projects.
This Reserve Fund is not obligatory however, the collections are committed for a
specific purpose and not available for general use. Unless specified, the City is
under no obligation to pay interest to any developers or third parties.
The interest income on these funds form part of the Reserve Fund as per the
Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve
No reserve fund limits are appropriate for this fund as collection and commitment
of funds are dependent upon development agreements or cost sharing
arrangements.
APPENDIX C
ONTARIO TRANSIT RENEWAL RESERVE FUND - G/L 4236
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Contribution from Ministry of Transportation
Interest on External Investments
Transfers out of the Reserve Fund
APTA Capital Expenditures
Pre Audit Actual Balance December 31, 2003
$ 142,489
14,956
$ 402,939
157,445
(545,427)
$ 14,957
Purpose of this Reserve Fund:
This is an "obligatory" Reserve Fund established to capture funding received
from Ministry of Transportation for the sole purpose of funding acquisition of
APTA vehicles or for any major vehicle refurbishment.
The interest income on these funds form part of the Reserve Fund as per the
Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve Fund:
No reserve fund limits are appropriate for this fund as availability of funds is
dependent on the amount of grant received.
$142,489 represents 50% of City of Pickering's share of the grant received from
the Ministry of Transportation. The remaining 50% belongs to the Town of Ajax
bringing a total funding of $284,977 under the Ontario Transit Renewal Program.
Commencing the latter half of 2003, funds will be provided from the Ontario
Transit Renewal Program as costs are incurred. As a result this Reserve Fund
may no longer be needed and the balance is expected to be nil as of December
31,2004.
APPENDIX C
SQUASH COURTS RESERVE FUND - GIL 4237
Actual Balance December 31, 2002
Transfers into the Reserve Fund
Surcharge on Memberships
Transfers out of the Reserve Fund
Pre Audit Actual Balance December 31, 2003
$ Nil
7,450
$ 7,450
Purpose of this Reserve Fund:
This Reserve Fund was established to capture funds from Pickering
Squash Club memberships' surcharges, corporate sponsorships, third
party contribution and any such funds as the Council may approve. This
Reserve Fund shall be used for the purpose of paying expenses related to
the provision of double squash courts. This Reserve Fund was newly
created in 2003 further to the recommendation passed in Council
Resolution #79/03, Item 5 per Report to Council CS 40-03.
The interest income on these funds form part of the Reserve Fund as per
the Municipal Act, 2001.
Recommended Maintenance Levels of this Reserve Fund:
No reserve fund limits are appropriate for this fund.