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HomeMy WebLinkAboutCS 23-08 CiuJ a~ REPORT TO EXECUTIVE COMMITTEE Report Number: CS 23-08 Date: September 8, 2008 '."'.4 ' , ~l , From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: APTA Wrap-up - City's Financial Implications Recommendation: 1. That Report CS 23-08 of the Director, Corporate Services & Treasurer be received; 2. That Council authorize the Director, Corporate Services & Treasurer to settle all financial matters between APT A and the City of Pickering in the manner indicated in this report, or as may be satisfactory to the Treasurer; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. Executive Summary: This report provides the summary of the financial cost to the City for the final accounting of APT A in accordance with the recommendations and resolutions provided in reports CS 28-07, CS 16-08 and CS 22-08. Financial Implications: As indicated in this report and contingent upon Region of Durham agreeing to the settlement matters discussed in Report 16-08. Sustainability Implications: implications. This report does not contain any sustainability Background: Further to report CS 28-07 and report CS 16-08 which provided updates on APT A's financial matters resolved and staff's position on those still outstanding at that time, this report provides a summary of the financial impact to the City with the resolution of all outstanding matters pertaining to the transfer of transit services to the Region on January 1 , 2006. Report CS 23-08 Date: September 8, 2008 Subject: APT A Wrap-up - City's Financial Implications Page 2 ~ ,~ The amounts provided herein are based on the assumption that all matters are resolved as outlined in report CS 16-08, which provides the most recent update, and the approval of CS 22-08. The financial transactions are summarized below. Although negotiations with the Region have been challenging, these resolutions were made to ensure the City's interests were best protected and to resolve a matter that has taken a very long time in resolving. APT A's Wrap-up - Financial Impact on City of Pickerinq Forgive APT A's Promissory Note to City Forgive Interest on Promissory Note Write-off City Share of OTVP $569,177 29,514 58,054 656,745 City Share of Distribution of APT A Allowance Provided by the City for uncollectibility Transit Reserve ( 21,449) (653,727) (120,999) (139,430) City Share of Post Employment Benefits 105,350 Net Surplus to the City $( 34.080) The above amount represents a net surplus to the City for the settlement of APT A's assets, liabilities and unfunded liabilities. The cost of $656,745 to the City has a minimal impact on the current year results since it is offset by the Transit Reserve money and the provision provided in the City's books over the last two years for the potential write-off. Over the last two years as negotiations were ongoing with the Region, it was in the City's best interest to provide for the possibility that these amounts may not be settled in accordance with the proposed recommendations. As the City's financial situation became more challenging, it was prudent to provide for these costs when the City had surpluses rather then wait for the final settlement and take a significant write off in a year where a surplus may not be available. With this final accounting completed, all assets will have been transferred and financial obligations met for the transfer of transit services to the Region. Attachments: None Report CS 23-08 Date: September 8, 2008 6Subject: APTA Wrap-up - City's Financial Implications Page 3 Prepared By: Prepared I Approved I Endorsed By: ~~~~f "~Q 116< . Kristine Senior Manager, Accounting Services ~:'-7h,=.,,_",_____ ~---." '-. '. _.c-~.. . .--) Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Co il ~ ;/