Long-Range Financial Plan IIRate Supported Programs New! Committee Recommendation Committee RecommendationThat the Corporate Services and Economic Development Committee recommend that Council approve: 1. The definition of a capital program as described in the Instructions for Completing the Financial Information Return be amended by adding a disclaimer related to development charges funded projects: “A capital expenditure is any significant expenditure incurred to acquire or improve land, buildings, engineering structures, machinery and equipment. It normally confers a benefit lasting beyond one year and results in the acquisition or extension of the life of a fixed asset. It includes vehicles, office furniture and equipment. An expenditure on repair or maintenance designed to maintain an asset in its original state is not a capital expenditure. A capital expenditure may include the costs of studies, etc., undertaken in connection with acquiring land or constructing buildings. It may also include interest on temporary borrowing for capital purposes and transfers for capital purposes to unconsolidated local entities, hospitals, universities and similar organizations. “Notwithstanding the preceding definition, expenditures that qualify for development charge funding will remain as capital projects, even if not in compliance with the capital expenditure definition, above. 2. The list of projects that are to be transferred from the capital budget to the operating budget (attached as Document 1) be approved and that a similar transfer of pay-as-you-go funding offset them. 3. A portion of the Hydro Ottawa dividends be set aside for the operating budget consistent with the Budget Directions Report with the remaining future dividends used to fund the capital program. 4. The annual Pay-as-you-go contributions be indexed in accordance with the City’s Infrastructure Price Index as published by Statistics Canada. 5. That the funding directions and strategies identified in the staff presentation be included in a staff report to Corporate Services Committee and be used as the basis for developing the 2005 Capital Budget, and, that these include action to eliminate the addition of higher tax-rate supported debt by the end of 2006. 6. That the City establish an Endowment Fund with the proceeds of the Hydro Ottawa refinancing and that the City request special legislation that would allow the fund to be invested under the Trustees Act; and That City Council request our representatives of the Association of Municipalities of Ontario (AMO) and the Large Urban Mayors’ Caucus of Ontario (LUMCO) to present the request for special legislation and seek AMO and LUMCO’s support for this request; and, Further that the City Clerk prepare a letter to Ottawa’s local MPP’s and all Ontario Municipalities seeking support for City Council’s request. 7. That a future funding strategy be brought forward for future affordable housing initiatives. BackgroundThe Long Range Financial Plan Sub-committee met on 4 October 2004 and again on 8 October 2004 to receive a presentation from staff on the Long Range Financial Plan 2, Tax Supported Program Overview (copy of PowerPoint presentation attached as Document 2) and to consider the recommendations brought forward by staff, as follows: That the Long Range Financial Plan Sub-committee recommend that the Corporate Services and Economic Development Committee and Council approve:
The Sub-committee approved these recommendations, as amended by the following two motions: Moved by Councillor R. Jellett That recommendation 5 be amended by adding: "And that these include action to eliminate the addition of higher tax-rate supported debt by the end of 2006." Moved by Councillor P. Hume That recommendation 6 be amended to add: "That City Council request our representatives of the Association of Municipalities of Ontario (AMO) and the Large Urban Mayors’ Caucus of Ontario (LUMCO) to present the request for special legislation and seek AMO and LUMCO’s support for this request; and, Further that the City Clerk prepare a letter to Ottawa’s local MPP’s and all Ontario Municipalities seeking support for City Council’s request. The recommendations, as amended by the foregoing, are now before the Corporate Services and Economic Development Committee for consideration and recommendation to Council. Supporting DocumentationDocument 1 – List of projects that are to be transferred from the capital budget to the operating budget, attached. Document 2 – Copy of staff PowerPoint presentation made to the Long Range Financial Plan Sub-Committee on 4 October 2004, entitled "City of Ottawa, Long Range Financial Plan 2, Tax Supported Program Review). Document 3 – Extract of Draft Minutes of the Long Range Financial Plan Sub-Committee meetings of 4 October 2004 and 8 October 2004. Document 4 – Background Report from Staff on the Long Range Financial Plan 2 Appendix 1 - Policy Recommendations Contained in the First Long Range Financial Plan Appendix 2 - Transfers to Operating Appendix 3 - Capital Project Summary - Tax Supported |
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