2.             DISPOSITION OF 2010 RATE SUPPORTED OPERATING Surplus

 

UTILISATION DEs EXCÉDENTs DE FONCTIONNEMENT DE 2010 – FINANCEMENT      SOUTENU PAR LES TARIFS

 

 

COMMITTEE RECOMMENDATIONS

 

That Council approve the following:

 

1.                  That the 2010 surplus of $9.6 million in the drinking water program be transferred to the Water Capital Reserve Fund.

 

2.                  That the 2010 surplus of $4.5 million in the wastewater program be transferred to the Wastewater Capital Reserve Fund.

 

 

RECOMMANDATIONS DU COMITÉ

 

Que le Conseil approuve :

 

1.                  Le transfert au Fonds de réserve pour l’eau de l’excédent de 9,6 millions de dollars enregistré par le programme de l’eau potable en 2010;

 

2.                  Le transfert au Fonds de réserve pour les eaux usées de l’excédent de 4,5 millions de dollars enregistré par le programme des eaux usées en 2010.

 

 

Documentation

 

1.                  City Treasurer’s report dated 20 April 2011 (ACS2011-CMR-FIN-0025.)

 

Report to/Rapport au :

 

Environment Committee

Comité de d’environnement

 

and Council / et au Conseil

 

20 April 2011 / le 20 avril 2011

 

Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière municipale

 

Contact Person/Personne ressource : Deputy City Treasurer – Corporate Finance / Trésorière municipale adjointe – Finances municipales 

Finance Department/ Service des finances

613-580-2424 ext./poste 41723, Mona.Monkman@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2011-CMR-FIN-0025

 

 

SUBJECT:

DISPOSITION OF 2010 RATE SUPPORTED OPERATING Surplus

 

 

OBJET :

UTILISATION DEs EXCÉDENTs DE FONCTIONNEMENT DE 2010 – FINANCEMENT SOUTENU PAR LES TARIFS

 

 

REPORT RECOMMENDATIONS

 

That the Environment Committee recommend Council approve the following:

 

1.                  That the 2010 surplus of $9.6 million in the drinking water program be transferred to the Water Capital Reserve Fund.

 

2.                  That the 2010 surplus of $4.5 million in the wastewater program be transferred to the Wastewater Capital Reserve Fund.

 

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité de l’environnement recommande au Conseil d’approuver :

 

1.                  Le transfert au Fonds de réserve pour l’eau de l’excédent de 9,6 millions de dollars enregistré par le programme de l’eau potable en 2010;

 

2.                  Le transfert au Fonds de réserve pour les eaux usées de l’excédent de 4,5 millions de dollars enregistré par le programme des eaux usées en 2010.

 

 

BACKGROUND

 

As part of the finalization of 2010 operations, and in conjunction with the preparation of the financial statements it is necessary to obtain Council approval of the disposition of any operating surplus to the capital reserve funds.  This report provides an analysis of the final results of the 2010 operations and the disposition of surpluses.

 

 

DISCUSSION

 

The City ended the year with a surplus of $9.6 million in the drinking water program and a surplus of $4.5 million in the wastewater program.

 

The 2011 Draft Operating and Capital Budget document that was before the Environment Committee on February 15, 2011 presented an analysis of these year-end surpluses. A variance analysis is also reproduced as Document 1 to this report.

 

The surplus in the water and wastewater programs resulted primarily from higher water and sewer surcharge billing revenues.

 

In order to finalize 2010 year-end Financial Statement reporting requirements, staff are recommending that surplus of $9.6 million in drinking water program be transferred to the Water Capital Reserve Fund and that the 2010 surplus of $4.5 million in the wastewater program be transferred to the Wastewater Capital Reserve Fund. 

 

Continuity of Reserves and Reserve Funds

 

Document 2 presents a continuity schedule of the City’s rate supported capital reserve funds.  The schedule shows the impact on reserve balances of the recommendations for surplus disposition that are included in this report of $14.1 million.

 

 

CONSULTATION

 

The purpose of this report is administrative in nature and therefore no public consultation is required. 

 

 

COMMENTS BY WARD COUNCILLOR(S)

 

N/A

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

The transfers outlined in the recommendations require Council approval.  There are no legal or risk management impediments to implementing the recommendations in this Report.

 

 

CITY STRATEGIC PLAN

 

N/A

 

 

TECHNICAL IMPLICATIONS

 

N/A

 

 

FINANCIAL IMPLICATIONS

 

Financial implications are outlined in this report. 

 

 

RURAL IMPLICATIONS

 

There are no rural implications to implementing the recommendations in this report.

 

 

SUPPORTING DOCUMENTATION

 

Document 1 – Variance Analysis – 2010 Operating Results – Rate Supported Programs

Document 2 – Capital Reserve Fund Continuities – Rate Supported

 

 

DISPOSITION

 

The Finance Department will make the necessary accounting adjustments.