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
~
;/