Blo-I Report BRAMPTON Corporate Services Committee

Committee of the Council ofbramptonca FlOWef City The Corporation of the City of Brampton

Date May 18 2015 Corporate Services Committee Date June 2120amp

File EHx

Subject 2015 Operating Budget and Reserve Fund Status Report (as at March 312015)

Contact David Sutton Director Financial Planning and Budgets Corporate Services (Finance) 905-874-2257

Overview

Operating Budget

bull The Citys Budget Control policy requires the Corporate Services department to report to Executive Leadership Team and Council on Operating Budget status updates at regular intervals during the year

bull At this point in the fiscal cycle it is premature to project trends or forecast year-end results given the limited amount of actual financial data Therefore Finance has conducted a high level review to determine if there are any known material variances for Councils consideration

bull As at March 31 2015 the City has incurred expenditures of $1237 million or 208 of the $5705 million expenditure budget Revenues of $2872 million have been received or 493 of the $5705 million revenue budget These 1st Quarter results are in line with historical trends and current expectations As such staff are confident that the 2015 Budget is progressing as approved

bull Staff will be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

Reserves Reserve Funds

bull An update on the status of the Citys primary Reserves and Reserve Funds including rate stabilization reserves and development charge reserve funds is also presented

Hlo-2

Recommendations

1 That the report from David Sutton Director Financial Planning and Budget Corporate Services Department dated May 18 2015 to the Corporate Services Committee meeting of June 24 2015 re 2015 Operating Budget and Reserve Fund Status Report (as at March 31 2015) be received

2 That Reserve Fund 92 - Federal Gas Tax (Region of Peel) be closed with any balance or future receipts to be deposited into Reserve Fund 91 - Federal Gas Tax

Background

The Citys Budget Control policy requires the Corporate Services department to report to Executive Leadership Team and Council on Operating Budget status updates at regular intervals during the year

At this point in the fiscal cycle it is premature to project trends or forecast year-end results given the limited amount of actual financial data Therefore Finance has conducted a high level review to determine ifthere are any large anomalies or areas of concern for Council

In addition this report provides an update on the status of Reserves and Reserve Funds and includes a section that describes how the City has complied with the requirements of Ontario Regulation 28409 by passing a 2015 full accrual Operating Budget that includes budget amounts for specific non-cash expenses

Current Situation

As at March 31 2015 the City has incurred expenditures of $1237 million or 208 of the $5705 million expenditure budget Revenues of $2872 million have been received or 493 of the $5705 million revenue budget

Although the revenue figure of 493 received to date may appear as though revenues will exceed budget the largest portion of the revenue budget consists of Property Tax receipts Interim Property Tax bills are sent out in the 1st Quarter and account for almost half of the total tax bill Hence the revenue received to date is deemed to be on target

The 2015 1st Quarter results are consistent with our expectations and in line with historical trends For example the 2014 1st Quarter resulted in an equivalent 208 of expenditures incurred and 501 of revenues received As such staff are confident that the 2015 Budget is progressing as approved

Hto-b

Staffwill be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

The following table summarizes the 2015 Current Budget year-end results

2015 OPERATING BUDGET FINANCIAL SUMMARY

Total Expenditure Total Revenue

Amount in 000s 2015 Annual Q1 Actuals Actual 2015 Q1 Actual

Budget of Annual Annual Actuals of Annual

Budget Budget Budget

Public Services 273425 61316 2243 (98659) (22215) 2252

Corporate Services 60945 16191 2657 (8840) (2337) 2644

Planning amp Infrastructure Serv 118472 25746 2173 (24385) (4477) 1836

Office of the COO 10636 1988 1869 (329) (109) 3319

Office of the CAO 1983 1065 5370 - -

Mayor amp Members Of Council 3180 1074 3378 - -

General Government 87680 7589 866 (438296) (252030) 5750

Library 14189 3435 2421 - -

Total 570509 118404 2075 (570509) (281168) 4928

ONTARIO REGULATION 28409 - BUDGET MATTERS - EXPENSES

With the changes in accounting standards and reporting requirements introduced in 2009 municipal budgets are not required to be prepared on the same basis as the financial statements Ontario Regulation 28409 does require municipalities to report on whether amortization expenses post-employment benefits and solid waste landfill post closure expenses have been included in the Citys annual budget (The City of Brampton has no responsibility for landfill sites)

For 2015 the City of Brampton approved a full accrual budget which includes non-cash items The full accrual budget provides stakeholders with a better reflection of the long-term financial health of the municipality for decision making purposes and also serves to meet the disclosure requirements of Ontario Regulation 28409 - Budget Matters - Expenses Therefore a separate report is not required

H04shy

The following tables illustrate the Council approved 2015 full accrual Operating Budget

2015 Expenditure Budget (000s) 2015 Revenue Budget (000s)

2015 PropertyTax Related Expenditure Budget 570509 2015 PropertyTax Related Revenue Budget (570509)

Less Less

Contributions to Reserve Funds (55215) Contributions from Reserve Funds 26869

Add Add

Recognized Development Charges Grant amp Amortization (Depreciation Expense) 117579 Subsidies (149064) Project Expenses that are Operating in Nature 29947 Developer Contributed Assets (136312) Post Employment and Other Liabilities 4974 interest Earned on Reserves (7600)

FuD Accrual Expenditure Budget 667794 Full Accrual Revenue Budget (836616)

|2015 NET SURPLUS (168822)1

RESERVES AND RESERVE FUNDS (Schedule A)

Development Charge Reserve Funds

As of March 31st there was a deficit in the Development Charge (DC) Reserve Funds of $169 million Staff continue to recommend that the deficit must be eliminated before build-out of the City when a sharp drop in DC revenue can be expected The majority of the over commitment of $169 million is recoverable from development charges over the Citys build-out horizon which is a result of the inherent nature of development whereby infrastructure is put in place in advance of collections Voluntary exemptionsdiscounts approved by Council totaling $45 million of the current deficit will not be recoverable from development charges and will need to be funded through the general tax base City Council previously approved a plan that will recover $12 million of the $45 million from the tax levy

Building Rate Stabilization Reserve Fund

As of March 31st the balance in this reserve fund was $282 million which provides reasonable assurance against a future short term downturn in building activity The 2015 Current Budget includes a budgeted contribution of $22 million to this reserve resulting in a projected increase of 77 to the reserve balance at year end The City is obligated to transfer any surplus of this nature to the reserve fund in accordance with the requirements of Bill 124 (Building Code Statute Law Amendment Act 2002)

HI0-6

Cash In Lieu of Parkland

As ofMarch 31st there was a balance in this reserve fund of$712 million With only limited cash inflows from receipts and sizeable land acquisition costs in the short to medium term it is critical that a cash flow strategy be considered as part of the long term funding plan

General Rate Stabilization Reserve

The General Rate Stabilization Reserve was initially established as a Tax Rate Stabilization (TRS) Reserve Fund in 1991 The purpose of the TRS was to smooth fluctuations in tax rates by receiving unbudgeted annual surpluses and contributing to the Current Fund to prevent unbudgeted deficits In 2002 a contribution of $279 million was directed to this fund as part of the financial strategy for the Hydro Sale Proceeds In 2004 the TRS was renamed the General Rate Stabilization Reserve (GRS) This reserve continues to act as the primary contingency fund to ensure that the municipality has the ability to meet its legislative requirementfor a balanced operating budget at year end The fund can be drawn upon when unforeseen or non-recurring events occur essentially protecting taxpayers from any major volatility in tax rates from year to year This reserve has served its purpose well as evidenced during the 2008 global economic recession It may be needed in the near term ifany expenditure incurred for the ice storm response and recovery effort are not covered by the Province under the Ice Storm Assistance Program (ISAP)

As ofMarch 31st the balance in this reserve was $511 million Repayment of outstanding loans is expected to increase the available balance toward the target level over time The General Rate Stabilization (GRS) Reserve balance target has been set by Council at 10 of budgeted gross annual operating and capital expenditures which for 2015 equates to $745 million Strategies to address the financial gap will be reviewed through the long-range financial planning effort brought to Council in 2015

Interest Rate Stabilization Reserve Fund

As of March 31st the uncommitted balance in this Reserve Fund was $137 million Staff recommends that the balance continue to be protected for use in mitigating any shortfalls in investment income expected in future years

Legacy Community Investment and Community Development Reserve Funds

As of March 31st the balance in these reserve funds was Legacy ($100 million) Community Investment ($100 million) and Community Development ($0) respectively

Hio-fc

bull The Legacy Fund has generated $720 million in interest revenue since the inception of the fund Of this $559 million has been transferred to the Current Fund during that time which has offset tax levy requirements and the balance has been transferred to the Interest Rate Stabilization reserve Fund

bull The Community Investment Fund has outstanding internal loans of $90 million committed against this fund for initiatives such as the Rose Theatre Provincial Offences Act Courthouse and Public Works Yards Annual interest on the fund has also been built into the base budget to offset tax levy needs The remaining uncommitted balance plus annual principal repayments will be available for internal financing of capital projects in 2015 and beyond

bull The Community Development Fund has been fully drawn down for projects of citywide benefit and was closed out in 2009 Funding was committed towards initiatives such as the Rose Theatre Downtown Revitalization and Sheridan College

Housekeeping Item

Reserve Fund 92 - Federal Gas Taxwas initially established to trackthe Citys share of the upper tier portion of Federal Gas Tax funding distributed to the lower tier municipalities by the Region of Peel This funding is independent of the Federal Gas Tax funding the City receives directly from the Association of Municipalities of Ontario (AMO)

Given that the purpose and use of the funding is the same Finance staff are recommending that Reserve Fund 92 Federal Gas Tax (Region of Peel) be closed with any balance or future receipts to be deposited into Reserve Fund 91 - Federal Gas Tax Combining these reserve funds will provide further clarity of overall Federal Gas Tax Reserve Fund balances

Strategic Plan

This report achieves the Strategic Plan priorities through Corporate Excellence Serving) Accurate and timelyfinancial reporting ensures Council has the information available to maximize the use of existing resources

Conclusion

As at March 31 2015 the City has incurred expenditures of $1237 million or 208 of the $5705 million expenditure budget Revenues of $2872 million have been received or 493 of the $5705 million revenue budget

The 2015 1st Quarter results are consistent with staffs expectations and in line with historical trends Therefore staff are confident that the 2015 Budget is progressing as

6

Mio-i

approved and that there are no known material variances to be reported to Council at this time

Staff will be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

David Sutton Peter Honeyborne Director Financial Planning and Budgets Executive Director Finance amp Treasurer

Appendices

Schedule A - Reserve and Reserve Funds

Report authored by Mark Medeiros Manager Corporate Budgets Finance Corporate Services

Approval for Submission

rx Date bull Chair SMT

Department Chief IPXgja L Chief Administrative Officer ffMn

7

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Discretionary Reserve and Reserve Funds

Financial Strategy Reserve Funds Res 211- Interest Rate Stabilization

Res 100 - Legacy Fund Res 110 - Community Investment Fund Res 120 - Community Development Fund

Subtotal

Other-Development Related Res 26 - Cash-ln-Lieu of Downtown Parking Res 37 - Official Plan Review Reserve Fund

Subtotal

Tax Base Capital Reserve Funds Res 4 - Asset Replacement Res 36 -Joint Use Facility Agreements Res 58 - Theatre Capital Improvements Res 78 -10 Non-DC

Subtotal

Special Purpose Reserve Funds Res 3 - Workers Compensation Fund Res 8 - 3rd Party Liab Self Insurance Res 10 - Civic CentreCorporate Facilities Res 12 - Land Proceeds

Res 15 - Conversion of Employee Sick Leave Res 19 - Employee Ben Prem Rate Stab Res 23 - Brampton Columbarium Res 25 - Municipal Elections Res 42 - CARE Program Res 53 - Brampton Senior Fund Res 54 - LACAC

Res 59 - Fire Life Safety Centre Res 88 - Downtown DC Waiver Reserve

Res 96 - Transportation Initiatives Reserve Res 97 - Multi -Year Non-Capital Projects Res 125 - Heritage Initiatives Res 126 - Pledge to Peel Memorial Hospital

Subtotal

Total Reserve Funds

Reserves

General Rate Stabilization Reserve

Downtown Improvement Reserve Fire amp Emergency Capital Reserve

Subtotal

Total Discretionary Reserve and Reserve Funds

2013

$15335

$100000

$7566

$0

$122901

$38

$1039

$1077

$3375

$408

$364

($2414) $1733

$7792

$7100

$2807

($102) $7127

$8951

$45

$1198

$1

$50

$43

$200

$1282

$10872

$270

$430

$11006

$59071

$184783

$47256

$0

$0

$47256

$232039

2014 2015

$13715 $13715

$100000 $100000

$9965 $9965

$0 $0

$123680 $123680

$39 $39

$522 $522

$560 $560

$15958 $15971

$438 $438

$241 $269

$2020 $2018

$18657 $18697

$7870 $8047

$8559 $7968

$3356 $3358

$631 $631

$7252 $7252

$8221 $8221

$2 $2

$498 $498

$2 $2

$50 $50

$43 $43

$172 $172

$1134 $1134

$4753 $4753

$259 $259

$438 $438

$21125 $21125

$64367 $63956

$207264 $206893

$51078 $51078

$0 $0

$0 $0

$51078 $51078

$258341 $257970

8

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Obligatory Reserve Funds 2013 2014 2015

Development Charges Res 13 14 43 44 72 73 amp 731 - Development Charges $0 ($0) ($0) Res 130 shy DCGrowth Studies amp Other $1154 $1162 $1329 Res 131 - DCCity Hall Debt Recap $0 $0 $0 Res 132-DCLibrary ($19309) ($16005) ($15522) Res 133 shy DC Fire Protection ($25219) ($18210) ($17725) Res 134 shy DCRecreation ($13923) $22843 $29510 Res135-DCTransit ($44347) ($43705) ($42526) Res 136 - DCPublic Works Buildings amp Fl ($38890) ($39998) ($39508) Res 137-DCRoads ($116679) ($115103) ($104162) Res 138 - DCParking Lots $6817 $7914 $7912 Res 139 - DCSection 14 Recovery $0 $0 $0

Res 140 - DC Institutional Recovery $0 $0 $0 Res 141 - DCRegional Mun of Peel $0 $0 $0

Res 142 shy DCBramwest North South Trans $11008 $11364 $11811 Subtotal ($239387) ($189738) ($168881)

Other-Development Related Res 2 - Cash in lieu of Parkland $18101 $62680 $71221 Res 18 - Dev Cont for Future Construction $25702 $26871 $26991 Res 38 shy Subdivision Maintenance $10894 $12603 $12869 Res 80 shy CIL $0 $0 $0

Subtotal $54698 $102153 $111081

Special Purpose Reserve Funds Res 22 - Sport Entertainment Centre $8204 $8221 $8221 Res 89 shy Dedicated Gas Tax Reserve $1476 $3869 $6274 Res 91 amp 92 shy Federal Gas Tax Reserves $3970 $8473 $8473 Res 93 - Building Rate Stabilization $22039 $28185 $28185 Res 94 shy Federal Public Transit Reserve $0 $0 $0 Res 95 - Accele Ride Reserve $27551 $16804 $16804 Res 99 - Metrolinx Bikelinx Program $0 $0 $0 Res 121 - Municipal Transit Capital $155 $716 $716 Res 122 Municipal Road amp Bridge Infrastructure $467 $553 $553 Res 123 Miscellaneous Fed ProvTransit Capital Grant $541 $439 $439 Res 124 Municipal Transit Demand Management $1 $3 $3 Res 127 Major Maintenance Reserve Fund $0 $319 $319 Res 128 Brampton Starter Company $0 $114 $114

Subtotal $64404 $67696 $70101

Total Obligatory Reserve Funds ($120286) ($19889) $12301

Total Obligatory and Discretionary Reserve and Reserve Fund $111753 $238453 $270272

Note 1 Figures may not add due to rounding Note 2 2013 and 2014 figures are Year-End balances 2015 balances are as at March 31 2015

Hto-b

Staffwill be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

The following table summarizes the 2015 Current Budget year-end results

2015 OPERATING BUDGET FINANCIAL SUMMARY

Total Expenditure Total Revenue

Amount in 000s 2015 Annual Q1 Actuals Actual 2015 Q1 Actual

Budget of Annual Annual Actuals of Annual

Budget Budget Budget

Public Services 273425 61316 2243 (98659) (22215) 2252

Corporate Services 60945 16191 2657 (8840) (2337) 2644

Planning amp Infrastructure Serv 118472 25746 2173 (24385) (4477) 1836

Office of the COO 10636 1988 1869 (329) (109) 3319

Office of the CAO 1983 1065 5370 - -

Mayor amp Members Of Council 3180 1074 3378 - -

General Government 87680 7589 866 (438296) (252030) 5750

Library 14189 3435 2421 - -

Total 570509 118404 2075 (570509) (281168) 4928

ONTARIO REGULATION 28409 - BUDGET MATTERS - EXPENSES

With the changes in accounting standards and reporting requirements introduced in 2009 municipal budgets are not required to be prepared on the same basis as the financial statements Ontario Regulation 28409 does require municipalities to report on whether amortization expenses post-employment benefits and solid waste landfill post closure expenses have been included in the Citys annual budget (The City of Brampton has no responsibility for landfill sites)

For 2015 the City of Brampton approved a full accrual budget which includes non-cash items The full accrual budget provides stakeholders with a better reflection of the long-term financial health of the municipality for decision making purposes and also serves to meet the disclosure requirements of Ontario Regulation 28409 - Budget Matters - Expenses Therefore a separate report is not required

H04shy

The following tables illustrate the Council approved 2015 full accrual Operating Budget

2015 Expenditure Budget (000s) 2015 Revenue Budget (000s)

2015 PropertyTax Related Expenditure Budget 570509 2015 PropertyTax Related Revenue Budget (570509)

Less Less

Contributions to Reserve Funds (55215) Contributions from Reserve Funds 26869

Add Add

Recognized Development Charges Grant amp Amortization (Depreciation Expense) 117579 Subsidies (149064) Project Expenses that are Operating in Nature 29947 Developer Contributed Assets (136312) Post Employment and Other Liabilities 4974 interest Earned on Reserves (7600)

FuD Accrual Expenditure Budget 667794 Full Accrual Revenue Budget (836616)

|2015 NET SURPLUS (168822)1

RESERVES AND RESERVE FUNDS (Schedule A)

Development Charge Reserve Funds

As of March 31st there was a deficit in the Development Charge (DC) Reserve Funds of $169 million Staff continue to recommend that the deficit must be eliminated before build-out of the City when a sharp drop in DC revenue can be expected The majority of the over commitment of $169 million is recoverable from development charges over the Citys build-out horizon which is a result of the inherent nature of development whereby infrastructure is put in place in advance of collections Voluntary exemptionsdiscounts approved by Council totaling $45 million of the current deficit will not be recoverable from development charges and will need to be funded through the general tax base City Council previously approved a plan that will recover $12 million of the $45 million from the tax levy

Building Rate Stabilization Reserve Fund

As of March 31st the balance in this reserve fund was $282 million which provides reasonable assurance against a future short term downturn in building activity The 2015 Current Budget includes a budgeted contribution of $22 million to this reserve resulting in a projected increase of 77 to the reserve balance at year end The City is obligated to transfer any surplus of this nature to the reserve fund in accordance with the requirements of Bill 124 (Building Code Statute Law Amendment Act 2002)

HI0-6

Cash In Lieu of Parkland

As ofMarch 31st there was a balance in this reserve fund of$712 million With only limited cash inflows from receipts and sizeable land acquisition costs in the short to medium term it is critical that a cash flow strategy be considered as part of the long term funding plan

General Rate Stabilization Reserve

The General Rate Stabilization Reserve was initially established as a Tax Rate Stabilization (TRS) Reserve Fund in 1991 The purpose of the TRS was to smooth fluctuations in tax rates by receiving unbudgeted annual surpluses and contributing to the Current Fund to prevent unbudgeted deficits In 2002 a contribution of $279 million was directed to this fund as part of the financial strategy for the Hydro Sale Proceeds In 2004 the TRS was renamed the General Rate Stabilization Reserve (GRS) This reserve continues to act as the primary contingency fund to ensure that the municipality has the ability to meet its legislative requirementfor a balanced operating budget at year end The fund can be drawn upon when unforeseen or non-recurring events occur essentially protecting taxpayers from any major volatility in tax rates from year to year This reserve has served its purpose well as evidenced during the 2008 global economic recession It may be needed in the near term ifany expenditure incurred for the ice storm response and recovery effort are not covered by the Province under the Ice Storm Assistance Program (ISAP)

As ofMarch 31st the balance in this reserve was $511 million Repayment of outstanding loans is expected to increase the available balance toward the target level over time The General Rate Stabilization (GRS) Reserve balance target has been set by Council at 10 of budgeted gross annual operating and capital expenditures which for 2015 equates to $745 million Strategies to address the financial gap will be reviewed through the long-range financial planning effort brought to Council in 2015

Interest Rate Stabilization Reserve Fund

As of March 31st the uncommitted balance in this Reserve Fund was $137 million Staff recommends that the balance continue to be protected for use in mitigating any shortfalls in investment income expected in future years

Legacy Community Investment and Community Development Reserve Funds

As of March 31st the balance in these reserve funds was Legacy ($100 million) Community Investment ($100 million) and Community Development ($0) respectively

Hio-fc

bull The Legacy Fund has generated $720 million in interest revenue since the inception of the fund Of this $559 million has been transferred to the Current Fund during that time which has offset tax levy requirements and the balance has been transferred to the Interest Rate Stabilization reserve Fund

bull The Community Investment Fund has outstanding internal loans of $90 million committed against this fund for initiatives such as the Rose Theatre Provincial Offences Act Courthouse and Public Works Yards Annual interest on the fund has also been built into the base budget to offset tax levy needs The remaining uncommitted balance plus annual principal repayments will be available for internal financing of capital projects in 2015 and beyond

bull The Community Development Fund has been fully drawn down for projects of citywide benefit and was closed out in 2009 Funding was committed towards initiatives such as the Rose Theatre Downtown Revitalization and Sheridan College

Housekeeping Item

Reserve Fund 92 - Federal Gas Taxwas initially established to trackthe Citys share of the upper tier portion of Federal Gas Tax funding distributed to the lower tier municipalities by the Region of Peel This funding is independent of the Federal Gas Tax funding the City receives directly from the Association of Municipalities of Ontario (AMO)

Given that the purpose and use of the funding is the same Finance staff are recommending that Reserve Fund 92 Federal Gas Tax (Region of Peel) be closed with any balance or future receipts to be deposited into Reserve Fund 91 - Federal Gas Tax Combining these reserve funds will provide further clarity of overall Federal Gas Tax Reserve Fund balances

Strategic Plan

This report achieves the Strategic Plan priorities through Corporate Excellence Serving) Accurate and timelyfinancial reporting ensures Council has the information available to maximize the use of existing resources

Conclusion

As at March 31 2015 the City has incurred expenditures of $1237 million or 208 of the $5705 million expenditure budget Revenues of $2872 million have been received or 493 of the $5705 million revenue budget

The 2015 1st Quarter results are consistent with staffs expectations and in line with historical trends Therefore staff are confident that the 2015 Budget is progressing as

6

Mio-i

approved and that there are no known material variances to be reported to Council at this time

Staff will be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

David Sutton Peter Honeyborne Director Financial Planning and Budgets Executive Director Finance amp Treasurer

Appendices

Schedule A - Reserve and Reserve Funds

Report authored by Mark Medeiros Manager Corporate Budgets Finance Corporate Services

Approval for Submission

rx Date bull Chair SMT

Department Chief IPXgja L Chief Administrative Officer ffMn

7

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Discretionary Reserve and Reserve Funds

Financial Strategy Reserve Funds Res 211- Interest Rate Stabilization

Res 100 - Legacy Fund Res 110 - Community Investment Fund Res 120 - Community Development Fund

Subtotal

Other-Development Related Res 26 - Cash-ln-Lieu of Downtown Parking Res 37 - Official Plan Review Reserve Fund

Subtotal

Tax Base Capital Reserve Funds Res 4 - Asset Replacement Res 36 -Joint Use Facility Agreements Res 58 - Theatre Capital Improvements Res 78 -10 Non-DC

Subtotal

Special Purpose Reserve Funds Res 3 - Workers Compensation Fund Res 8 - 3rd Party Liab Self Insurance Res 10 - Civic CentreCorporate Facilities Res 12 - Land Proceeds

Res 15 - Conversion of Employee Sick Leave Res 19 - Employee Ben Prem Rate Stab Res 23 - Brampton Columbarium Res 25 - Municipal Elections Res 42 - CARE Program Res 53 - Brampton Senior Fund Res 54 - LACAC

Res 59 - Fire Life Safety Centre Res 88 - Downtown DC Waiver Reserve

Res 96 - Transportation Initiatives Reserve Res 97 - Multi -Year Non-Capital Projects Res 125 - Heritage Initiatives Res 126 - Pledge to Peel Memorial Hospital

Subtotal

Total Reserve Funds

Reserves

General Rate Stabilization Reserve

Downtown Improvement Reserve Fire amp Emergency Capital Reserve

Subtotal

Total Discretionary Reserve and Reserve Funds

2013

$15335

$100000

$7566

$0

$122901

$38

$1039

$1077

$3375

$408

$364

($2414) $1733

$7792

$7100

$2807

($102) $7127

$8951

$45

$1198

$1

$50

$43

$200

$1282

$10872

$270

$430

$11006

$59071

$184783

$47256

$0

$0

$47256

$232039

2014 2015

$13715 $13715

$100000 $100000

$9965 $9965

$0 $0

$123680 $123680

$39 $39

$522 $522

$560 $560

$15958 $15971

$438 $438

$241 $269

$2020 $2018

$18657 $18697

$7870 $8047

$8559 $7968

$3356 $3358

$631 $631

$7252 $7252

$8221 $8221

$2 $2

$498 $498

$2 $2

$50 $50

$43 $43

$172 $172

$1134 $1134

$4753 $4753

$259 $259

$438 $438

$21125 $21125

$64367 $63956

$207264 $206893

$51078 $51078

$0 $0

$0 $0

$51078 $51078

$258341 $257970

8

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Obligatory Reserve Funds 2013 2014 2015

Development Charges Res 13 14 43 44 72 73 amp 731 - Development Charges $0 ($0) ($0) Res 130 shy DCGrowth Studies amp Other $1154 $1162 $1329 Res 131 - DCCity Hall Debt Recap $0 $0 $0 Res 132-DCLibrary ($19309) ($16005) ($15522) Res 133 shy DC Fire Protection ($25219) ($18210) ($17725) Res 134 shy DCRecreation ($13923) $22843 $29510 Res135-DCTransit ($44347) ($43705) ($42526) Res 136 - DCPublic Works Buildings amp Fl ($38890) ($39998) ($39508) Res 137-DCRoads ($116679) ($115103) ($104162) Res 138 - DCParking Lots $6817 $7914 $7912 Res 139 - DCSection 14 Recovery $0 $0 $0

Res 140 - DC Institutional Recovery $0 $0 $0 Res 141 - DCRegional Mun of Peel $0 $0 $0

Res 142 shy DCBramwest North South Trans $11008 $11364 $11811 Subtotal ($239387) ($189738) ($168881)

Other-Development Related Res 2 - Cash in lieu of Parkland $18101 $62680 $71221 Res 18 - Dev Cont for Future Construction $25702 $26871 $26991 Res 38 shy Subdivision Maintenance $10894 $12603 $12869 Res 80 shy CIL $0 $0 $0

Subtotal $54698 $102153 $111081

Special Purpose Reserve Funds Res 22 - Sport Entertainment Centre $8204 $8221 $8221 Res 89 shy Dedicated Gas Tax Reserve $1476 $3869 $6274 Res 91 amp 92 shy Federal Gas Tax Reserves $3970 $8473 $8473 Res 93 - Building Rate Stabilization $22039 $28185 $28185 Res 94 shy Federal Public Transit Reserve $0 $0 $0 Res 95 - Accele Ride Reserve $27551 $16804 $16804 Res 99 - Metrolinx Bikelinx Program $0 $0 $0 Res 121 - Municipal Transit Capital $155 $716 $716 Res 122 Municipal Road amp Bridge Infrastructure $467 $553 $553 Res 123 Miscellaneous Fed ProvTransit Capital Grant $541 $439 $439 Res 124 Municipal Transit Demand Management $1 $3 $3 Res 127 Major Maintenance Reserve Fund $0 $319 $319 Res 128 Brampton Starter Company $0 $114 $114

Subtotal $64404 $67696 $70101

Total Obligatory Reserve Funds ($120286) ($19889) $12301

Total Obligatory and Discretionary Reserve and Reserve Fund $111753 $238453 $270272

Note 1 Figures may not add due to rounding Note 2 2013 and 2014 figures are Year-End balances 2015 balances are as at March 31 2015

H04shy

The following tables illustrate the Council approved 2015 full accrual Operating Budget

2015 Expenditure Budget (000s) 2015 Revenue Budget (000s)

2015 PropertyTax Related Expenditure Budget 570509 2015 PropertyTax Related Revenue Budget (570509)

Less Less

Contributions to Reserve Funds (55215) Contributions from Reserve Funds 26869

Add Add

Recognized Development Charges Grant amp Amortization (Depreciation Expense) 117579 Subsidies (149064) Project Expenses that are Operating in Nature 29947 Developer Contributed Assets (136312) Post Employment and Other Liabilities 4974 interest Earned on Reserves (7600)

FuD Accrual Expenditure Budget 667794 Full Accrual Revenue Budget (836616)

|2015 NET SURPLUS (168822)1

RESERVES AND RESERVE FUNDS (Schedule A)

Development Charge Reserve Funds

As of March 31st there was a deficit in the Development Charge (DC) Reserve Funds of $169 million Staff continue to recommend that the deficit must be eliminated before build-out of the City when a sharp drop in DC revenue can be expected The majority of the over commitment of $169 million is recoverable from development charges over the Citys build-out horizon which is a result of the inherent nature of development whereby infrastructure is put in place in advance of collections Voluntary exemptionsdiscounts approved by Council totaling $45 million of the current deficit will not be recoverable from development charges and will need to be funded through the general tax base City Council previously approved a plan that will recover $12 million of the $45 million from the tax levy

Building Rate Stabilization Reserve Fund

As of March 31st the balance in this reserve fund was $282 million which provides reasonable assurance against a future short term downturn in building activity The 2015 Current Budget includes a budgeted contribution of $22 million to this reserve resulting in a projected increase of 77 to the reserve balance at year end The City is obligated to transfer any surplus of this nature to the reserve fund in accordance with the requirements of Bill 124 (Building Code Statute Law Amendment Act 2002)

HI0-6

Cash In Lieu of Parkland

As ofMarch 31st there was a balance in this reserve fund of$712 million With only limited cash inflows from receipts and sizeable land acquisition costs in the short to medium term it is critical that a cash flow strategy be considered as part of the long term funding plan

General Rate Stabilization Reserve

The General Rate Stabilization Reserve was initially established as a Tax Rate Stabilization (TRS) Reserve Fund in 1991 The purpose of the TRS was to smooth fluctuations in tax rates by receiving unbudgeted annual surpluses and contributing to the Current Fund to prevent unbudgeted deficits In 2002 a contribution of $279 million was directed to this fund as part of the financial strategy for the Hydro Sale Proceeds In 2004 the TRS was renamed the General Rate Stabilization Reserve (GRS) This reserve continues to act as the primary contingency fund to ensure that the municipality has the ability to meet its legislative requirementfor a balanced operating budget at year end The fund can be drawn upon when unforeseen or non-recurring events occur essentially protecting taxpayers from any major volatility in tax rates from year to year This reserve has served its purpose well as evidenced during the 2008 global economic recession It may be needed in the near term ifany expenditure incurred for the ice storm response and recovery effort are not covered by the Province under the Ice Storm Assistance Program (ISAP)

As ofMarch 31st the balance in this reserve was $511 million Repayment of outstanding loans is expected to increase the available balance toward the target level over time The General Rate Stabilization (GRS) Reserve balance target has been set by Council at 10 of budgeted gross annual operating and capital expenditures which for 2015 equates to $745 million Strategies to address the financial gap will be reviewed through the long-range financial planning effort brought to Council in 2015

Interest Rate Stabilization Reserve Fund

As of March 31st the uncommitted balance in this Reserve Fund was $137 million Staff recommends that the balance continue to be protected for use in mitigating any shortfalls in investment income expected in future years

Legacy Community Investment and Community Development Reserve Funds

As of March 31st the balance in these reserve funds was Legacy ($100 million) Community Investment ($100 million) and Community Development ($0) respectively

Hio-fc

bull The Legacy Fund has generated $720 million in interest revenue since the inception of the fund Of this $559 million has been transferred to the Current Fund during that time which has offset tax levy requirements and the balance has been transferred to the Interest Rate Stabilization reserve Fund

bull The Community Investment Fund has outstanding internal loans of $90 million committed against this fund for initiatives such as the Rose Theatre Provincial Offences Act Courthouse and Public Works Yards Annual interest on the fund has also been built into the base budget to offset tax levy needs The remaining uncommitted balance plus annual principal repayments will be available for internal financing of capital projects in 2015 and beyond

bull The Community Development Fund has been fully drawn down for projects of citywide benefit and was closed out in 2009 Funding was committed towards initiatives such as the Rose Theatre Downtown Revitalization and Sheridan College

Housekeeping Item

Reserve Fund 92 - Federal Gas Taxwas initially established to trackthe Citys share of the upper tier portion of Federal Gas Tax funding distributed to the lower tier municipalities by the Region of Peel This funding is independent of the Federal Gas Tax funding the City receives directly from the Association of Municipalities of Ontario (AMO)

Given that the purpose and use of the funding is the same Finance staff are recommending that Reserve Fund 92 Federal Gas Tax (Region of Peel) be closed with any balance or future receipts to be deposited into Reserve Fund 91 - Federal Gas Tax Combining these reserve funds will provide further clarity of overall Federal Gas Tax Reserve Fund balances

Strategic Plan

This report achieves the Strategic Plan priorities through Corporate Excellence Serving) Accurate and timelyfinancial reporting ensures Council has the information available to maximize the use of existing resources

Conclusion

As at March 31 2015 the City has incurred expenditures of $1237 million or 208 of the $5705 million expenditure budget Revenues of $2872 million have been received or 493 of the $5705 million revenue budget

The 2015 1st Quarter results are consistent with staffs expectations and in line with historical trends Therefore staff are confident that the 2015 Budget is progressing as

6

Mio-i

approved and that there are no known material variances to be reported to Council at this time

Staff will be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

David Sutton Peter Honeyborne Director Financial Planning and Budgets Executive Director Finance amp Treasurer

Appendices

Schedule A - Reserve and Reserve Funds

Report authored by Mark Medeiros Manager Corporate Budgets Finance Corporate Services

Approval for Submission

rx Date bull Chair SMT

Department Chief IPXgja L Chief Administrative Officer ffMn

7

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Discretionary Reserve and Reserve Funds

Financial Strategy Reserve Funds Res 211- Interest Rate Stabilization

Res 100 - Legacy Fund Res 110 - Community Investment Fund Res 120 - Community Development Fund

Subtotal

Other-Development Related Res 26 - Cash-ln-Lieu of Downtown Parking Res 37 - Official Plan Review Reserve Fund

Subtotal

Tax Base Capital Reserve Funds Res 4 - Asset Replacement Res 36 -Joint Use Facility Agreements Res 58 - Theatre Capital Improvements Res 78 -10 Non-DC

Subtotal

Special Purpose Reserve Funds Res 3 - Workers Compensation Fund Res 8 - 3rd Party Liab Self Insurance Res 10 - Civic CentreCorporate Facilities Res 12 - Land Proceeds

Res 15 - Conversion of Employee Sick Leave Res 19 - Employee Ben Prem Rate Stab Res 23 - Brampton Columbarium Res 25 - Municipal Elections Res 42 - CARE Program Res 53 - Brampton Senior Fund Res 54 - LACAC

Res 59 - Fire Life Safety Centre Res 88 - Downtown DC Waiver Reserve

Res 96 - Transportation Initiatives Reserve Res 97 - Multi -Year Non-Capital Projects Res 125 - Heritage Initiatives Res 126 - Pledge to Peel Memorial Hospital

Subtotal

Total Reserve Funds

Reserves

General Rate Stabilization Reserve

Downtown Improvement Reserve Fire amp Emergency Capital Reserve

Subtotal

Total Discretionary Reserve and Reserve Funds

2013

$15335

$100000

$7566

$0

$122901

$38

$1039

$1077

$3375

$408

$364

($2414) $1733

$7792

$7100

$2807

($102) $7127

$8951

$45

$1198

$1

$50

$43

$200

$1282

$10872

$270

$430

$11006

$59071

$184783

$47256

$0

$0

$47256

$232039

2014 2015

$13715 $13715

$100000 $100000

$9965 $9965

$0 $0

$123680 $123680

$39 $39

$522 $522

$560 $560

$15958 $15971

$438 $438

$241 $269

$2020 $2018

$18657 $18697

$7870 $8047

$8559 $7968

$3356 $3358

$631 $631

$7252 $7252

$8221 $8221

$2 $2

$498 $498

$2 $2

$50 $50

$43 $43

$172 $172

$1134 $1134

$4753 $4753

$259 $259

$438 $438

$21125 $21125

$64367 $63956

$207264 $206893

$51078 $51078

$0 $0

$0 $0

$51078 $51078

$258341 $257970

8

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Obligatory Reserve Funds 2013 2014 2015

Development Charges Res 13 14 43 44 72 73 amp 731 - Development Charges $0 ($0) ($0) Res 130 shy DCGrowth Studies amp Other $1154 $1162 $1329 Res 131 - DCCity Hall Debt Recap $0 $0 $0 Res 132-DCLibrary ($19309) ($16005) ($15522) Res 133 shy DC Fire Protection ($25219) ($18210) ($17725) Res 134 shy DCRecreation ($13923) $22843 $29510 Res135-DCTransit ($44347) ($43705) ($42526) Res 136 - DCPublic Works Buildings amp Fl ($38890) ($39998) ($39508) Res 137-DCRoads ($116679) ($115103) ($104162) Res 138 - DCParking Lots $6817 $7914 $7912 Res 139 - DCSection 14 Recovery $0 $0 $0

Res 140 - DC Institutional Recovery $0 $0 $0 Res 141 - DCRegional Mun of Peel $0 $0 $0

Res 142 shy DCBramwest North South Trans $11008 $11364 $11811 Subtotal ($239387) ($189738) ($168881)

Other-Development Related Res 2 - Cash in lieu of Parkland $18101 $62680 $71221 Res 18 - Dev Cont for Future Construction $25702 $26871 $26991 Res 38 shy Subdivision Maintenance $10894 $12603 $12869 Res 80 shy CIL $0 $0 $0

Subtotal $54698 $102153 $111081

Special Purpose Reserve Funds Res 22 - Sport Entertainment Centre $8204 $8221 $8221 Res 89 shy Dedicated Gas Tax Reserve $1476 $3869 $6274 Res 91 amp 92 shy Federal Gas Tax Reserves $3970 $8473 $8473 Res 93 - Building Rate Stabilization $22039 $28185 $28185 Res 94 shy Federal Public Transit Reserve $0 $0 $0 Res 95 - Accele Ride Reserve $27551 $16804 $16804 Res 99 - Metrolinx Bikelinx Program $0 $0 $0 Res 121 - Municipal Transit Capital $155 $716 $716 Res 122 Municipal Road amp Bridge Infrastructure $467 $553 $553 Res 123 Miscellaneous Fed ProvTransit Capital Grant $541 $439 $439 Res 124 Municipal Transit Demand Management $1 $3 $3 Res 127 Major Maintenance Reserve Fund $0 $319 $319 Res 128 Brampton Starter Company $0 $114 $114

Subtotal $64404 $67696 $70101

Total Obligatory Reserve Funds ($120286) ($19889) $12301

Total Obligatory and Discretionary Reserve and Reserve Fund $111753 $238453 $270272

Note 1 Figures may not add due to rounding Note 2 2013 and 2014 figures are Year-End balances 2015 balances are as at March 31 2015

HI0-6

Cash In Lieu of Parkland

As ofMarch 31st there was a balance in this reserve fund of$712 million With only limited cash inflows from receipts and sizeable land acquisition costs in the short to medium term it is critical that a cash flow strategy be considered as part of the long term funding plan

General Rate Stabilization Reserve

The General Rate Stabilization Reserve was initially established as a Tax Rate Stabilization (TRS) Reserve Fund in 1991 The purpose of the TRS was to smooth fluctuations in tax rates by receiving unbudgeted annual surpluses and contributing to the Current Fund to prevent unbudgeted deficits In 2002 a contribution of $279 million was directed to this fund as part of the financial strategy for the Hydro Sale Proceeds In 2004 the TRS was renamed the General Rate Stabilization Reserve (GRS) This reserve continues to act as the primary contingency fund to ensure that the municipality has the ability to meet its legislative requirementfor a balanced operating budget at year end The fund can be drawn upon when unforeseen or non-recurring events occur essentially protecting taxpayers from any major volatility in tax rates from year to year This reserve has served its purpose well as evidenced during the 2008 global economic recession It may be needed in the near term ifany expenditure incurred for the ice storm response and recovery effort are not covered by the Province under the Ice Storm Assistance Program (ISAP)

As ofMarch 31st the balance in this reserve was $511 million Repayment of outstanding loans is expected to increase the available balance toward the target level over time The General Rate Stabilization (GRS) Reserve balance target has been set by Council at 10 of budgeted gross annual operating and capital expenditures which for 2015 equates to $745 million Strategies to address the financial gap will be reviewed through the long-range financial planning effort brought to Council in 2015

Interest Rate Stabilization Reserve Fund

As of March 31st the uncommitted balance in this Reserve Fund was $137 million Staff recommends that the balance continue to be protected for use in mitigating any shortfalls in investment income expected in future years

Legacy Community Investment and Community Development Reserve Funds

As of March 31st the balance in these reserve funds was Legacy ($100 million) Community Investment ($100 million) and Community Development ($0) respectively

Hio-fc

bull The Legacy Fund has generated $720 million in interest revenue since the inception of the fund Of this $559 million has been transferred to the Current Fund during that time which has offset tax levy requirements and the balance has been transferred to the Interest Rate Stabilization reserve Fund

bull The Community Investment Fund has outstanding internal loans of $90 million committed against this fund for initiatives such as the Rose Theatre Provincial Offences Act Courthouse and Public Works Yards Annual interest on the fund has also been built into the base budget to offset tax levy needs The remaining uncommitted balance plus annual principal repayments will be available for internal financing of capital projects in 2015 and beyond

bull The Community Development Fund has been fully drawn down for projects of citywide benefit and was closed out in 2009 Funding was committed towards initiatives such as the Rose Theatre Downtown Revitalization and Sheridan College

Housekeeping Item

Reserve Fund 92 - Federal Gas Taxwas initially established to trackthe Citys share of the upper tier portion of Federal Gas Tax funding distributed to the lower tier municipalities by the Region of Peel This funding is independent of the Federal Gas Tax funding the City receives directly from the Association of Municipalities of Ontario (AMO)

Given that the purpose and use of the funding is the same Finance staff are recommending that Reserve Fund 92 Federal Gas Tax (Region of Peel) be closed with any balance or future receipts to be deposited into Reserve Fund 91 - Federal Gas Tax Combining these reserve funds will provide further clarity of overall Federal Gas Tax Reserve Fund balances

Strategic Plan

This report achieves the Strategic Plan priorities through Corporate Excellence Serving) Accurate and timelyfinancial reporting ensures Council has the information available to maximize the use of existing resources

Conclusion

As at March 31 2015 the City has incurred expenditures of $1237 million or 208 of the $5705 million expenditure budget Revenues of $2872 million have been received or 493 of the $5705 million revenue budget

The 2015 1st Quarter results are consistent with staffs expectations and in line with historical trends Therefore staff are confident that the 2015 Budget is progressing as

6

Mio-i

approved and that there are no known material variances to be reported to Council at this time

Staff will be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

David Sutton Peter Honeyborne Director Financial Planning and Budgets Executive Director Finance amp Treasurer

Appendices

Schedule A - Reserve and Reserve Funds

Report authored by Mark Medeiros Manager Corporate Budgets Finance Corporate Services

Approval for Submission

rx Date bull Chair SMT

Department Chief IPXgja L Chief Administrative Officer ffMn

7

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Discretionary Reserve and Reserve Funds

Financial Strategy Reserve Funds Res 211- Interest Rate Stabilization

Res 100 - Legacy Fund Res 110 - Community Investment Fund Res 120 - Community Development Fund

Subtotal

Other-Development Related Res 26 - Cash-ln-Lieu of Downtown Parking Res 37 - Official Plan Review Reserve Fund

Subtotal

Tax Base Capital Reserve Funds Res 4 - Asset Replacement Res 36 -Joint Use Facility Agreements Res 58 - Theatre Capital Improvements Res 78 -10 Non-DC

Subtotal

Special Purpose Reserve Funds Res 3 - Workers Compensation Fund Res 8 - 3rd Party Liab Self Insurance Res 10 - Civic CentreCorporate Facilities Res 12 - Land Proceeds

Res 15 - Conversion of Employee Sick Leave Res 19 - Employee Ben Prem Rate Stab Res 23 - Brampton Columbarium Res 25 - Municipal Elections Res 42 - CARE Program Res 53 - Brampton Senior Fund Res 54 - LACAC

Res 59 - Fire Life Safety Centre Res 88 - Downtown DC Waiver Reserve

Res 96 - Transportation Initiatives Reserve Res 97 - Multi -Year Non-Capital Projects Res 125 - Heritage Initiatives Res 126 - Pledge to Peel Memorial Hospital

Subtotal

Total Reserve Funds

Reserves

General Rate Stabilization Reserve

Downtown Improvement Reserve Fire amp Emergency Capital Reserve

Subtotal

Total Discretionary Reserve and Reserve Funds

2013

$15335

$100000

$7566

$0

$122901

$38

$1039

$1077

$3375

$408

$364

($2414) $1733

$7792

$7100

$2807

($102) $7127

$8951

$45

$1198

$1

$50

$43

$200

$1282

$10872

$270

$430

$11006

$59071

$184783

$47256

$0

$0

$47256

$232039

2014 2015

$13715 $13715

$100000 $100000

$9965 $9965

$0 $0

$123680 $123680

$39 $39

$522 $522

$560 $560

$15958 $15971

$438 $438

$241 $269

$2020 $2018

$18657 $18697

$7870 $8047

$8559 $7968

$3356 $3358

$631 $631

$7252 $7252

$8221 $8221

$2 $2

$498 $498

$2 $2

$50 $50

$43 $43

$172 $172

$1134 $1134

$4753 $4753

$259 $259

$438 $438

$21125 $21125

$64367 $63956

$207264 $206893

$51078 $51078

$0 $0

$0 $0

$51078 $51078

$258341 $257970

8

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Obligatory Reserve Funds 2013 2014 2015

Development Charges Res 13 14 43 44 72 73 amp 731 - Development Charges $0 ($0) ($0) Res 130 shy DCGrowth Studies amp Other $1154 $1162 $1329 Res 131 - DCCity Hall Debt Recap $0 $0 $0 Res 132-DCLibrary ($19309) ($16005) ($15522) Res 133 shy DC Fire Protection ($25219) ($18210) ($17725) Res 134 shy DCRecreation ($13923) $22843 $29510 Res135-DCTransit ($44347) ($43705) ($42526) Res 136 - DCPublic Works Buildings amp Fl ($38890) ($39998) ($39508) Res 137-DCRoads ($116679) ($115103) ($104162) Res 138 - DCParking Lots $6817 $7914 $7912 Res 139 - DCSection 14 Recovery $0 $0 $0

Res 140 - DC Institutional Recovery $0 $0 $0 Res 141 - DCRegional Mun of Peel $0 $0 $0

Res 142 shy DCBramwest North South Trans $11008 $11364 $11811 Subtotal ($239387) ($189738) ($168881)

Other-Development Related Res 2 - Cash in lieu of Parkland $18101 $62680 $71221 Res 18 - Dev Cont for Future Construction $25702 $26871 $26991 Res 38 shy Subdivision Maintenance $10894 $12603 $12869 Res 80 shy CIL $0 $0 $0

Subtotal $54698 $102153 $111081

Special Purpose Reserve Funds Res 22 - Sport Entertainment Centre $8204 $8221 $8221 Res 89 shy Dedicated Gas Tax Reserve $1476 $3869 $6274 Res 91 amp 92 shy Federal Gas Tax Reserves $3970 $8473 $8473 Res 93 - Building Rate Stabilization $22039 $28185 $28185 Res 94 shy Federal Public Transit Reserve $0 $0 $0 Res 95 - Accele Ride Reserve $27551 $16804 $16804 Res 99 - Metrolinx Bikelinx Program $0 $0 $0 Res 121 - Municipal Transit Capital $155 $716 $716 Res 122 Municipal Road amp Bridge Infrastructure $467 $553 $553 Res 123 Miscellaneous Fed ProvTransit Capital Grant $541 $439 $439 Res 124 Municipal Transit Demand Management $1 $3 $3 Res 127 Major Maintenance Reserve Fund $0 $319 $319 Res 128 Brampton Starter Company $0 $114 $114

Subtotal $64404 $67696 $70101

Total Obligatory Reserve Funds ($120286) ($19889) $12301

Total Obligatory and Discretionary Reserve and Reserve Fund $111753 $238453 $270272

Note 1 Figures may not add due to rounding Note 2 2013 and 2014 figures are Year-End balances 2015 balances are as at March 31 2015

Hio-fc

bull The Legacy Fund has generated $720 million in interest revenue since the inception of the fund Of this $559 million has been transferred to the Current Fund during that time which has offset tax levy requirements and the balance has been transferred to the Interest Rate Stabilization reserve Fund

bull The Community Investment Fund has outstanding internal loans of $90 million committed against this fund for initiatives such as the Rose Theatre Provincial Offences Act Courthouse and Public Works Yards Annual interest on the fund has also been built into the base budget to offset tax levy needs The remaining uncommitted balance plus annual principal repayments will be available for internal financing of capital projects in 2015 and beyond

bull The Community Development Fund has been fully drawn down for projects of citywide benefit and was closed out in 2009 Funding was committed towards initiatives such as the Rose Theatre Downtown Revitalization and Sheridan College

Housekeeping Item

Reserve Fund 92 - Federal Gas Taxwas initially established to trackthe Citys share of the upper tier portion of Federal Gas Tax funding distributed to the lower tier municipalities by the Region of Peel This funding is independent of the Federal Gas Tax funding the City receives directly from the Association of Municipalities of Ontario (AMO)

Given that the purpose and use of the funding is the same Finance staff are recommending that Reserve Fund 92 Federal Gas Tax (Region of Peel) be closed with any balance or future receipts to be deposited into Reserve Fund 91 - Federal Gas Tax Combining these reserve funds will provide further clarity of overall Federal Gas Tax Reserve Fund balances

Strategic Plan

This report achieves the Strategic Plan priorities through Corporate Excellence Serving) Accurate and timelyfinancial reporting ensures Council has the information available to maximize the use of existing resources

Conclusion

As at March 31 2015 the City has incurred expenditures of $1237 million or 208 of the $5705 million expenditure budget Revenues of $2872 million have been received or 493 of the $5705 million revenue budget

The 2015 1st Quarter results are consistent with staffs expectations and in line with historical trends Therefore staff are confident that the 2015 Budget is progressing as

6

Mio-i

approved and that there are no known material variances to be reported to Council at this time

Staff will be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

David Sutton Peter Honeyborne Director Financial Planning and Budgets Executive Director Finance amp Treasurer

Appendices

Schedule A - Reserve and Reserve Funds

Report authored by Mark Medeiros Manager Corporate Budgets Finance Corporate Services

Approval for Submission

rx Date bull Chair SMT

Department Chief IPXgja L Chief Administrative Officer ffMn

7

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Discretionary Reserve and Reserve Funds

Financial Strategy Reserve Funds Res 211- Interest Rate Stabilization

Res 100 - Legacy Fund Res 110 - Community Investment Fund Res 120 - Community Development Fund

Subtotal

Other-Development Related Res 26 - Cash-ln-Lieu of Downtown Parking Res 37 - Official Plan Review Reserve Fund

Subtotal

Tax Base Capital Reserve Funds Res 4 - Asset Replacement Res 36 -Joint Use Facility Agreements Res 58 - Theatre Capital Improvements Res 78 -10 Non-DC

Subtotal

Special Purpose Reserve Funds Res 3 - Workers Compensation Fund Res 8 - 3rd Party Liab Self Insurance Res 10 - Civic CentreCorporate Facilities Res 12 - Land Proceeds

Res 15 - Conversion of Employee Sick Leave Res 19 - Employee Ben Prem Rate Stab Res 23 - Brampton Columbarium Res 25 - Municipal Elections Res 42 - CARE Program Res 53 - Brampton Senior Fund Res 54 - LACAC

Res 59 - Fire Life Safety Centre Res 88 - Downtown DC Waiver Reserve

Res 96 - Transportation Initiatives Reserve Res 97 - Multi -Year Non-Capital Projects Res 125 - Heritage Initiatives Res 126 - Pledge to Peel Memorial Hospital

Subtotal

Total Reserve Funds

Reserves

General Rate Stabilization Reserve

Downtown Improvement Reserve Fire amp Emergency Capital Reserve

Subtotal

Total Discretionary Reserve and Reserve Funds

2013

$15335

$100000

$7566

$0

$122901

$38

$1039

$1077

$3375

$408

$364

($2414) $1733

$7792

$7100

$2807

($102) $7127

$8951

$45

$1198

$1

$50

$43

$200

$1282

$10872

$270

$430

$11006

$59071

$184783

$47256

$0

$0

$47256

$232039

2014 2015

$13715 $13715

$100000 $100000

$9965 $9965

$0 $0

$123680 $123680

$39 $39

$522 $522

$560 $560

$15958 $15971

$438 $438

$241 $269

$2020 $2018

$18657 $18697

$7870 $8047

$8559 $7968

$3356 $3358

$631 $631

$7252 $7252

$8221 $8221

$2 $2

$498 $498

$2 $2

$50 $50

$43 $43

$172 $172

$1134 $1134

$4753 $4753

$259 $259

$438 $438

$21125 $21125

$64367 $63956

$207264 $206893

$51078 $51078

$0 $0

$0 $0

$51078 $51078

$258341 $257970

8

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Obligatory Reserve Funds 2013 2014 2015

Development Charges Res 13 14 43 44 72 73 amp 731 - Development Charges $0 ($0) ($0) Res 130 shy DCGrowth Studies amp Other $1154 $1162 $1329 Res 131 - DCCity Hall Debt Recap $0 $0 $0 Res 132-DCLibrary ($19309) ($16005) ($15522) Res 133 shy DC Fire Protection ($25219) ($18210) ($17725) Res 134 shy DCRecreation ($13923) $22843 $29510 Res135-DCTransit ($44347) ($43705) ($42526) Res 136 - DCPublic Works Buildings amp Fl ($38890) ($39998) ($39508) Res 137-DCRoads ($116679) ($115103) ($104162) Res 138 - DCParking Lots $6817 $7914 $7912 Res 139 - DCSection 14 Recovery $0 $0 $0

Res 140 - DC Institutional Recovery $0 $0 $0 Res 141 - DCRegional Mun of Peel $0 $0 $0

Res 142 shy DCBramwest North South Trans $11008 $11364 $11811 Subtotal ($239387) ($189738) ($168881)

Other-Development Related Res 2 - Cash in lieu of Parkland $18101 $62680 $71221 Res 18 - Dev Cont for Future Construction $25702 $26871 $26991 Res 38 shy Subdivision Maintenance $10894 $12603 $12869 Res 80 shy CIL $0 $0 $0

Subtotal $54698 $102153 $111081

Special Purpose Reserve Funds Res 22 - Sport Entertainment Centre $8204 $8221 $8221 Res 89 shy Dedicated Gas Tax Reserve $1476 $3869 $6274 Res 91 amp 92 shy Federal Gas Tax Reserves $3970 $8473 $8473 Res 93 - Building Rate Stabilization $22039 $28185 $28185 Res 94 shy Federal Public Transit Reserve $0 $0 $0 Res 95 - Accele Ride Reserve $27551 $16804 $16804 Res 99 - Metrolinx Bikelinx Program $0 $0 $0 Res 121 - Municipal Transit Capital $155 $716 $716 Res 122 Municipal Road amp Bridge Infrastructure $467 $553 $553 Res 123 Miscellaneous Fed ProvTransit Capital Grant $541 $439 $439 Res 124 Municipal Transit Demand Management $1 $3 $3 Res 127 Major Maintenance Reserve Fund $0 $319 $319 Res 128 Brampton Starter Company $0 $114 $114

Subtotal $64404 $67696 $70101

Total Obligatory Reserve Funds ($120286) ($19889) $12301

Total Obligatory and Discretionary Reserve and Reserve Fund $111753 $238453 $270272

Note 1 Figures may not add due to rounding Note 2 2013 and 2014 figures are Year-End balances 2015 balances are as at March 31 2015

Mio-i

approved and that there are no known material variances to be reported to Council at this time

Staff will be conducting detailed analysis and projections for the 2nd and 3rd Quarter Forecast reports as a clearer picture of the annual variances become available

David Sutton Peter Honeyborne Director Financial Planning and Budgets Executive Director Finance amp Treasurer

Appendices

Schedule A - Reserve and Reserve Funds

Report authored by Mark Medeiros Manager Corporate Budgets Finance Corporate Services

Approval for Submission

rx Date bull Chair SMT

Department Chief IPXgja L Chief Administrative Officer ffMn

7

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Discretionary Reserve and Reserve Funds

Financial Strategy Reserve Funds Res 211- Interest Rate Stabilization

Res 100 - Legacy Fund Res 110 - Community Investment Fund Res 120 - Community Development Fund

Subtotal

Other-Development Related Res 26 - Cash-ln-Lieu of Downtown Parking Res 37 - Official Plan Review Reserve Fund

Subtotal

Tax Base Capital Reserve Funds Res 4 - Asset Replacement Res 36 -Joint Use Facility Agreements Res 58 - Theatre Capital Improvements Res 78 -10 Non-DC

Subtotal

Special Purpose Reserve Funds Res 3 - Workers Compensation Fund Res 8 - 3rd Party Liab Self Insurance Res 10 - Civic CentreCorporate Facilities Res 12 - Land Proceeds

Res 15 - Conversion of Employee Sick Leave Res 19 - Employee Ben Prem Rate Stab Res 23 - Brampton Columbarium Res 25 - Municipal Elections Res 42 - CARE Program Res 53 - Brampton Senior Fund Res 54 - LACAC

Res 59 - Fire Life Safety Centre Res 88 - Downtown DC Waiver Reserve

Res 96 - Transportation Initiatives Reserve Res 97 - Multi -Year Non-Capital Projects Res 125 - Heritage Initiatives Res 126 - Pledge to Peel Memorial Hospital

Subtotal

Total Reserve Funds

Reserves

General Rate Stabilization Reserve

Downtown Improvement Reserve Fire amp Emergency Capital Reserve

Subtotal

Total Discretionary Reserve and Reserve Funds

2013

$15335

$100000

$7566

$0

$122901

$38

$1039

$1077

$3375

$408

$364

($2414) $1733

$7792

$7100

$2807

($102) $7127

$8951

$45

$1198

$1

$50

$43

$200

$1282

$10872

$270

$430

$11006

$59071

$184783

$47256

$0

$0

$47256

$232039

2014 2015

$13715 $13715

$100000 $100000

$9965 $9965

$0 $0

$123680 $123680

$39 $39

$522 $522

$560 $560

$15958 $15971

$438 $438

$241 $269

$2020 $2018

$18657 $18697

$7870 $8047

$8559 $7968

$3356 $3358

$631 $631

$7252 $7252

$8221 $8221

$2 $2

$498 $498

$2 $2

$50 $50

$43 $43

$172 $172

$1134 $1134

$4753 $4753

$259 $259

$438 $438

$21125 $21125

$64367 $63956

$207264 $206893

$51078 $51078

$0 $0

$0 $0

$51078 $51078

$258341 $257970

8

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Obligatory Reserve Funds 2013 2014 2015

Development Charges Res 13 14 43 44 72 73 amp 731 - Development Charges $0 ($0) ($0) Res 130 shy DCGrowth Studies amp Other $1154 $1162 $1329 Res 131 - DCCity Hall Debt Recap $0 $0 $0 Res 132-DCLibrary ($19309) ($16005) ($15522) Res 133 shy DC Fire Protection ($25219) ($18210) ($17725) Res 134 shy DCRecreation ($13923) $22843 $29510 Res135-DCTransit ($44347) ($43705) ($42526) Res 136 - DCPublic Works Buildings amp Fl ($38890) ($39998) ($39508) Res 137-DCRoads ($116679) ($115103) ($104162) Res 138 - DCParking Lots $6817 $7914 $7912 Res 139 - DCSection 14 Recovery $0 $0 $0

Res 140 - DC Institutional Recovery $0 $0 $0 Res 141 - DCRegional Mun of Peel $0 $0 $0

Res 142 shy DCBramwest North South Trans $11008 $11364 $11811 Subtotal ($239387) ($189738) ($168881)

Other-Development Related Res 2 - Cash in lieu of Parkland $18101 $62680 $71221 Res 18 - Dev Cont for Future Construction $25702 $26871 $26991 Res 38 shy Subdivision Maintenance $10894 $12603 $12869 Res 80 shy CIL $0 $0 $0

Subtotal $54698 $102153 $111081

Special Purpose Reserve Funds Res 22 - Sport Entertainment Centre $8204 $8221 $8221 Res 89 shy Dedicated Gas Tax Reserve $1476 $3869 $6274 Res 91 amp 92 shy Federal Gas Tax Reserves $3970 $8473 $8473 Res 93 - Building Rate Stabilization $22039 $28185 $28185 Res 94 shy Federal Public Transit Reserve $0 $0 $0 Res 95 - Accele Ride Reserve $27551 $16804 $16804 Res 99 - Metrolinx Bikelinx Program $0 $0 $0 Res 121 - Municipal Transit Capital $155 $716 $716 Res 122 Municipal Road amp Bridge Infrastructure $467 $553 $553 Res 123 Miscellaneous Fed ProvTransit Capital Grant $541 $439 $439 Res 124 Municipal Transit Demand Management $1 $3 $3 Res 127 Major Maintenance Reserve Fund $0 $319 $319 Res 128 Brampton Starter Company $0 $114 $114

Subtotal $64404 $67696 $70101

Total Obligatory Reserve Funds ($120286) ($19889) $12301

Total Obligatory and Discretionary Reserve and Reserve Fund $111753 $238453 $270272

Note 1 Figures may not add due to rounding Note 2 2013 and 2014 figures are Year-End balances 2015 balances are as at March 31 2015

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Discretionary Reserve and Reserve Funds

Financial Strategy Reserve Funds Res 211- Interest Rate Stabilization

Res 100 - Legacy Fund Res 110 - Community Investment Fund Res 120 - Community Development Fund

Subtotal

Other-Development Related Res 26 - Cash-ln-Lieu of Downtown Parking Res 37 - Official Plan Review Reserve Fund

Subtotal

Tax Base Capital Reserve Funds Res 4 - Asset Replacement Res 36 -Joint Use Facility Agreements Res 58 - Theatre Capital Improvements Res 78 -10 Non-DC

Subtotal

Special Purpose Reserve Funds Res 3 - Workers Compensation Fund Res 8 - 3rd Party Liab Self Insurance Res 10 - Civic CentreCorporate Facilities Res 12 - Land Proceeds

Res 15 - Conversion of Employee Sick Leave Res 19 - Employee Ben Prem Rate Stab Res 23 - Brampton Columbarium Res 25 - Municipal Elections Res 42 - CARE Program Res 53 - Brampton Senior Fund Res 54 - LACAC

Res 59 - Fire Life Safety Centre Res 88 - Downtown DC Waiver Reserve

Res 96 - Transportation Initiatives Reserve Res 97 - Multi -Year Non-Capital Projects Res 125 - Heritage Initiatives Res 126 - Pledge to Peel Memorial Hospital

Subtotal

Total Reserve Funds

Reserves

General Rate Stabilization Reserve

Downtown Improvement Reserve Fire amp Emergency Capital Reserve

Subtotal

Total Discretionary Reserve and Reserve Funds

2013

$15335

$100000

$7566

$0

$122901

$38

$1039

$1077

$3375

$408

$364

($2414) $1733

$7792

$7100

$2807

($102) $7127

$8951

$45

$1198

$1

$50

$43

$200

$1282

$10872

$270

$430

$11006

$59071

$184783

$47256

$0

$0

$47256

$232039

2014 2015

$13715 $13715

$100000 $100000

$9965 $9965

$0 $0

$123680 $123680

$39 $39

$522 $522

$560 $560

$15958 $15971

$438 $438

$241 $269

$2020 $2018

$18657 $18697

$7870 $8047

$8559 $7968

$3356 $3358

$631 $631

$7252 $7252

$8221 $8221

$2 $2

$498 $498

$2 $2

$50 $50

$43 $43

$172 $172

$1134 $1134

$4753 $4753

$259 $259

$438 $438

$21125 $21125

$64367 $63956

$207264 $206893

$51078 $51078

$0 $0

$0 $0

$51078 $51078

$258341 $257970

8

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Obligatory Reserve Funds 2013 2014 2015

Development Charges Res 13 14 43 44 72 73 amp 731 - Development Charges $0 ($0) ($0) Res 130 shy DCGrowth Studies amp Other $1154 $1162 $1329 Res 131 - DCCity Hall Debt Recap $0 $0 $0 Res 132-DCLibrary ($19309) ($16005) ($15522) Res 133 shy DC Fire Protection ($25219) ($18210) ($17725) Res 134 shy DCRecreation ($13923) $22843 $29510 Res135-DCTransit ($44347) ($43705) ($42526) Res 136 - DCPublic Works Buildings amp Fl ($38890) ($39998) ($39508) Res 137-DCRoads ($116679) ($115103) ($104162) Res 138 - DCParking Lots $6817 $7914 $7912 Res 139 - DCSection 14 Recovery $0 $0 $0

Res 140 - DC Institutional Recovery $0 $0 $0 Res 141 - DCRegional Mun of Peel $0 $0 $0

Res 142 shy DCBramwest North South Trans $11008 $11364 $11811 Subtotal ($239387) ($189738) ($168881)

Other-Development Related Res 2 - Cash in lieu of Parkland $18101 $62680 $71221 Res 18 - Dev Cont for Future Construction $25702 $26871 $26991 Res 38 shy Subdivision Maintenance $10894 $12603 $12869 Res 80 shy CIL $0 $0 $0

Subtotal $54698 $102153 $111081

Special Purpose Reserve Funds Res 22 - Sport Entertainment Centre $8204 $8221 $8221 Res 89 shy Dedicated Gas Tax Reserve $1476 $3869 $6274 Res 91 amp 92 shy Federal Gas Tax Reserves $3970 $8473 $8473 Res 93 - Building Rate Stabilization $22039 $28185 $28185 Res 94 shy Federal Public Transit Reserve $0 $0 $0 Res 95 - Accele Ride Reserve $27551 $16804 $16804 Res 99 - Metrolinx Bikelinx Program $0 $0 $0 Res 121 - Municipal Transit Capital $155 $716 $716 Res 122 Municipal Road amp Bridge Infrastructure $467 $553 $553 Res 123 Miscellaneous Fed ProvTransit Capital Grant $541 $439 $439 Res 124 Municipal Transit Demand Management $1 $3 $3 Res 127 Major Maintenance Reserve Fund $0 $319 $319 Res 128 Brampton Starter Company $0 $114 $114

Subtotal $64404 $67696 $70101

Total Obligatory Reserve Funds ($120286) ($19889) $12301

Total Obligatory and Discretionary Reserve and Reserve Fund $111753 $238453 $270272

Note 1 Figures may not add due to rounding Note 2 2013 and 2014 figures are Year-End balances 2015 balances are as at March 31 2015

SCHEDULE A RESERVE AND RESERVE FUND BALANCES ($000s) AS OF MARCH 31 2015

Obligatory Reserve Funds 2013 2014 2015

Development Charges Res 13 14 43 44 72 73 amp 731 - Development Charges $0 ($0) ($0) Res 130 shy DCGrowth Studies amp Other $1154 $1162 $1329 Res 131 - DCCity Hall Debt Recap $0 $0 $0 Res 132-DCLibrary ($19309) ($16005) ($15522) Res 133 shy DC Fire Protection ($25219) ($18210) ($17725) Res 134 shy DCRecreation ($13923) $22843 $29510 Res135-DCTransit ($44347) ($43705) ($42526) Res 136 - DCPublic Works Buildings amp Fl ($38890) ($39998) ($39508) Res 137-DCRoads ($116679) ($115103) ($104162) Res 138 - DCParking Lots $6817 $7914 $7912 Res 139 - DCSection 14 Recovery $0 $0 $0

Res 140 - DC Institutional Recovery $0 $0 $0 Res 141 - DCRegional Mun of Peel $0 $0 $0

Res 142 shy DCBramwest North South Trans $11008 $11364 $11811 Subtotal ($239387) ($189738) ($168881)

Other-Development Related Res 2 - Cash in lieu of Parkland $18101 $62680 $71221 Res 18 - Dev Cont for Future Construction $25702 $26871 $26991 Res 38 shy Subdivision Maintenance $10894 $12603 $12869 Res 80 shy CIL $0 $0 $0

Subtotal $54698 $102153 $111081

Special Purpose Reserve Funds Res 22 - Sport Entertainment Centre $8204 $8221 $8221 Res 89 shy Dedicated Gas Tax Reserve $1476 $3869 $6274 Res 91 amp 92 shy Federal Gas Tax Reserves $3970 $8473 $8473 Res 93 - Building Rate Stabilization $22039 $28185 $28185 Res 94 shy Federal Public Transit Reserve $0 $0 $0 Res 95 - Accele Ride Reserve $27551 $16804 $16804 Res 99 - Metrolinx Bikelinx Program $0 $0 $0 Res 121 - Municipal Transit Capital $155 $716 $716 Res 122 Municipal Road amp Bridge Infrastructure $467 $553 $553 Res 123 Miscellaneous Fed ProvTransit Capital Grant $541 $439 $439 Res 124 Municipal Transit Demand Management $1 $3 $3 Res 127 Major Maintenance Reserve Fund $0 $319 $319 Res 128 Brampton Starter Company $0 $114 $114

Subtotal $64404 $67696 $70101

Total Obligatory Reserve Funds ($120286) ($19889) $12301

Total Obligatory and Discretionary Reserve and Reserve Fund $111753 $238453 $270272

Note 1 Figures may not add due to rounding Note 2 2013 and 2014 figures are Year-End balances 2015 balances are as at March 31 2015