Reserves & Reserve Funds Business Plan & 2016 Budget

Transcription

1 Reserves & Reserve Funds 2018 Business Plan & Budget

2 Table of Contents Executive Summary of Reserves and Reserve Funds... 3 Overview... 4 Forecast Changes... 6 Operating Reserves and Reserve Funds... 7 Transfers to Operating Reserves and Reserve Funds... 8 Transfers from Operating Reserves and Reserve Funds... 9 Continuity Schedule of Operating Reserves and Reserve Funds Capital Reserve Funds Transfers to Capital Reserve Funds Transfers from Capital Reserves Funds Continuity Schedule of Capital Reserves and Reserve Funds Year Forecast Schedule Tax Capital and Subsidiary Reserve Funds Federal and Provincial Contribution Reserve Funds Details of the Gas Tax Receipts Development Charges Reserve Funds All Services Reserves and Reserve Funds Descriptions Appendix 1: Reserves and Reserve Funds Transfers... 25

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4 Executive Summary of Reserves and Reserve Funds Reserves and Reserve Funds are established by Council to assist with long term financial stability and financial planning. They are an important element of the city s financial plan. By maintaining reserves, the City can accumulate funds for future or contingent liabilities a key component of sound long-term financial planning practices. They also provide a cushion to absorb unexpected shifts in revenues and expenditures, fund one-time expenditure requirements, and minimize fluctuations in taxes caused by cyclical conditions. Credit rating agencies consider municipalities with higher reserves to be more advanced in their financial planning. Reserves & Reserve Funds Capital Fund Operating Fund Business Plan and Budget W-3

5 Overview Reserves are allocated at the discretion of Council, often as part of an overall strategy for funding programs or projects; Reserve Funds are segregated, and restricted for a specific purpose. In a municipality, a distinction is further made between Obligatory and Discretionary reserve funds. Reserves & Reserve Funds Reserves Reserve Funds Obligatory Reserve Funds Discretionary Reserve Funds Reserves are an allocation of accumulated net revenue. They are not associated with any specific asset. A reserve is generally used to mitigate the impact of fluctuations in operating costs and revenue. Reserves do not earn interest. Examples of reserves currently used to mitigate budgetary fluctuations include: Reserve for Winter Maintenance, Reserves for Commodities, Reserve for Assessment Appeal, and the Reserve for Elections. W Business Plan and Budget

6 Reserve Funds are segregated and restricted to meet a specific purpose. They represent monies set aside either by a by-law of the municipality or by the requirement of provincial legislation. Interest earned on reserve funds must be allocated to the specific reserve fund that earned it. Reserve Funds are further segregated as follows: Obligatory Reserve Funds are created whenever a provincial statute requires revenue received for special purposes to be segregated from the general revenues of the municipality. Obligatory reserve funds can only be used for their prescribed purpose. Examples include Development Charge Reserve Funds, Lot Levy Reserve Funds, Cash-in-Lieu Reserve Funds, and Building Stabilization Reserve Funds. Discretionary Reserve Funds are established, based on Council direction, to finance future expenditures for which the City has the authority to spend money or to provide for a specific contingent liability. A number of Discretionary Reserve Funds have been established to assist in funding long term programs. The best examples of these Discretionary Reserve Funds are Transit Vehicle and Equipment Replacement and Fire Vehicle Equipment and Replacement Business Plan and Budget W-5

7 Forecast Changes The following chart provides a summary of the projected Reserves and Reserve Funds as compared to Operating and Capital Reserves & Reserve Funds Summary Description Estimated Balance 2015 Balance Change % Change Operating 104, ,752 (2,604) (2.5%) Tax Funded 182, ,335 23, % Total Deferred Funded 93,391 73,962 (19,429) (20.8%) Total Other Funded 107,659 73,256 (34,403) (32.0%) Total 488, ,304 (32,901) (6.7%) Note: Numbers may not balance due to rounding. The balances in the Operating and Capital Reserves and Reserve Funds are estimated to decrease by $32.9 million or 6.7 per cent from The projected decrease in the Operating Reserves and Reserve Funds is mainly due to increased insurance costs as a result of an increased number of claims and claim costs (Insurance Reserve Fund), and increased expenditures forecast for the Sick Leave and Workers Compensation reserve funds (at levels higher than projected contributions). The Capital Reserve Fund and Tax Subsidiary Reserve Funds are expected to increase as result of transferring approximately $35 million in recommended surplus from Developer Contribution reserve funds. The Gas Tax Reserve Fund is projected to decrease as the capital expenditures are forecasted to be higher than projected contributions. Development reserve funds are projected to decrease due to the unpredictability of high density development in the city which is not as foreseeable as greenfield development. W Business Plan and Budget

8 Operating Reserves and Reserve Funds The total reserves and reserve funds are expected to decrease by $2.6 million or 2.5 per cent. Compared to 2015, the balance in the Operating Reserves are anticipated to increase by $1.6 million or 3.6 per cent. The increase is primarily due to contributions to the Assessment Appeal and Commodities reserves. Total Reserve Funds are expected to decrease by $4.2 million or 7.0 per cent, mainly due to increased draws on the Insurance Reserve Fund, Sick Leave Reserve Fund and the Workers Compensation Reserve Fund. Operating Reserves & Reserve Funds Balance Note:Numbers may not balance due to rounding. Estimated Balance 2015 Balance Change in Balance in 2015 Estimated Balance % Total Reserves 43,993 45,595 1, % Total Reserve Funds 60,364 56,157 (4,207) (7.0%) Total 104, ,752 (2,604) (2.5%) Business Plan and Budget W-7

9 Transfers to Operating Reserves and Reserve Funds Description Transfer to Reserves Transfer to Reserve Funds Transfer to Reserves and Reserve Funds Interest Income Total Transfers to Reserves and Reserve Funds Requested Budget 4,081 3,815 7,896 1,731 9,626 Note: Numbers may not balance due to rounding. The Operating Program recommends transfers to Operating Reserves and Reserve Funds totalling $7,895,700 as follows: $2,336,800 to the Insurance Reserve Fund to fund future insurance claims $1,400,000 to the Workers Compensation Reserve Fund $1,309,000 in transfers to the Reserve for Assessment Appeals. This Reserve is designed to mitigate changes in taxes generated through changes in the assessed values of property; to mitigate revenue losses through ongoing assessment appeals; and, to fund the annual repayment of $59,000 for the 21-year repayment plan to pay for the annexation of the Ninth Line lands (an original cost of $1.2 million) $1,008,900 to the General Contingency Reserve to fund various one-time initiatives $1,000,000 to the Commodities Reserve to manage fluctuations in diesel prices $600,000 to the Reserve for Elections to fund future municipal elections $163,000 to the Reserve for the Arts to fund various cultural initiatives $78,000 to the Group Benefit Reserve Fund to fund group benefit costs for retired employees W Business Plan and Budget

10 Transfers from Operating Reserves and Reserve Funds Description Transfer from Reserves Transfer from Reserve Funds Total Transfers to Reserves and Reserve Funds Requested Budget 2,479 9,752 12,231 Note: Numbers may not balance due to rounding. The Operating Program recommends transfers from Reserves and Reserve Funds totalling $12,230,614 as follows: $5,539,500 from the Insurance Reserve Fund to cover the payments of estimated claims $4,097,500 from the Workers Compensation, Sick Leave, Group Benefits Reserve Funds and Reserve for Labour Settlement to offset estimated costs $1,149,114 from the Reserve for Contingency to fund various one-time initiatives $656,000 from the Development Stabilization Reserve and the Planning Process Updates Reserve to fund various initiatives for Land Development Services $342,000 from the Transit Bus Shelter Advertising Reserve $215,000 from Other Reserve Fund to fund initiatives from the Economic Development Office $200,000 from the Reserve for Arts to fund various cultural initiatives $31,500 from the Elections Reserve for election-related costs Business Plan and Budget W-9

11 Continuity Schedule of Operating Reserves and Reserve Funds Reserves and Reserve Funds Balance Jan 1, Contributions 2015 Interest 2015 Expenditures Balance Dec 31, 2015 Contributions Interest Expenditures Balance Dec 31, Total Operating Reserve Funds Group Benefits Reserve Fund 5, (25) 5, (20) 5,816 Insurance Reserve Fund 32,756 2, (5,314) 30,642 2, (5,540) 28,342 Other Reserve Fund (163) (215) 109 Sick Leave Reserve Fund 7, (1,308) 6, (1,300) 5,420 Workers' Compensation Reserve Fund 17,859 1, (2,499) 17,246 1, (2,678) 16,469 Total Operating Reserve Funds 64,050 3,927 1,708 (9,308) 60,364 3,815 1,731 (9,752) 56,157 Total Operating Reserves Reserve for Assessment Appeals 3,379 1, ,688 1, ,997 Reserve for Building Permits Revenue Stabilization 1, , ,249 Reserve for Commodities 5, ,046 1, ,046 Reserve for Current Budget (398) Reserve for Development Stabilization 2, (450) 2, (450) 1,830 Reserve for Early Retirement Reserve for Elections 1, (587) 1, (32) 1,928 Reserve for General Contingencies 5, (1,069) 5,510 1,009 0 (1,149) 5,370 Reserve for Labour Settlements 5, (100) 5, (100) 5,066 Reserve for Legal Settlements 1, , ,740 Reserve for Planning Process Updates (179) (206) 532 Reserve for the Arts 1, (150) 1, (200) 1,204 Reserve for Transit Bus Shelter Advertising (600) (342) 0 Reserve for Vacation Pay 5, , ,820 Reserve for Winter Maintenance 8, , ,313 Total Operating Reserves 44,858 2,667 0 (3,532) 43,993 4,081 0 (2,479) 45,595 Total Operating Reserve and Reserve Funds 108,908 6,595 1,708 (12,840) 104,357 7,896 1,731 (12,231) 101,752 Note: Numbers may not balance due to rounding. W Business Plan and Budget

12 Capital Reserve Funds Capital Reserve Funds are monies set aside for the repair and major maintenance costs of capital infrastructure and for large capital expenditures such as the renovation of a community centre or road reconstruction. It is forecast that the projected balance in will be less than the 2015 estimated balance by 7.9 per cent. The primary reason is the anticipated reduction in Development Charge revenue and the increase in the number of projects approved under Development Funding. The Continuity Schedule of Capital Reserve Funds can be found at the end of this section along with projected balances to December 31, as well as a 10-year forecast for various capital-based reserve funds. Description Estimated Balance 2015 Balance Change % Change Capital Program - Tax Funded 182, ,335 23, % Total Deferred Funded 93,391 73,962 (19,429) (20.8%) Total Other Funded 107,659 73,256 (34,403) (32.0%) Total Capital Reserve Funds 383, ,552 (30,296) (7.9%) Note: Numbers may not add due to rounding Business Plan and Budget W-11

13 Transfers to Capital Reserve Funds Description Total Transfers to Capital Reserve Funds Requested Budget 194,423 Included in the Budget are recommendations that $194,423,024 be transferred to various Capital Reserve Funds (both tax-based and growth related) as follows: $55,388,551 gas tax revenue from the Federal and Provincial Governments; including the City s share of the Region of Peel receipts $41,285,449 transfer from General Revenue to the Capital Reserve Fund for capital infrastructure $34,721,000 transfer from Developer Contributions Reserve Fund to the Capital Reserve Fund for capital infrastructure $25,343,221 in estimated development charge revenues $12,977,203 transfer from the Capital Reserve Fund to the Facility Repair and Renovation Reserve Fund $11,150,000 in estimated parkland dedication contributions $5,600,000 to Emerald Ash Borer Reserve Fund $3,157,000 transfer from the Capital Reserve Fund to the Main Fleet Vehicle and Equipment Reserve Fund $2,095,000 transfer from the Capital Reserve Fund to the Fire Vehicles and Equipment Reserve Fund $1,110,000 transfer from the Capital Reserve Fund to the Roadway Infrastructure Maintenance and Replacement Reserve Fund $720,000 repayment to Capital Reserve Fund for investment in the initital stormwater charge start-up costs $338,100 in estimated developer contributions $311,200 transfer from General Revenue to the Capital Reserve Fund for various capital initiatives $100,800 to Loyola Artificial Turf Soccer Field and Track $65,100 in estimated cost sharing initiative for the Courtneypark Artificial Turf $60,400 in estimated profit sharing from the BraeBen Golf Course and the Region of Peel (originally named the Britannia Hills Golf Course) W Business Plan and Budget

14 Transfers from Capital Reserves Funds Description Total Transfers from Capital Reserve Funds 2015 Requested Budget 233,828 Note: Numbers may not balance due to rounding. The Budget recommends transfers from tax-based and growth-related Capital Reserve Funds of $233,827,977 to activities and projects as follows: $63,027,200 from the Federal and Provincial Gas Tax Reserve Funds for various transit-related initiatives including funding of transit expansion costs contained in the Operating Budget and various transportation capital initiatives for Transit bridges and roadways $50,463,415 from the Capital Reserve Funds to finance non-growth tax-based projects in the Capital Budget, to transfer to the Facility Repair and Renovation, Fire Vehicles and Equipment and Main Fleet Reserve Funds as well as to fund the Project Management Support Office $51,009,883 from the Development Charges Reserve Fund to fund growth-based projects as well as various Development Charge transactions $34,721,000 transfer of surplus from Developer Contributions Reserve Fund to the Capital Reserve Fund for capital infrastructure $1,424,840 from the Developers Contributions Reserve Fund to fund growth-based projects $12,977,203 in projects from the Facility Repair and Renovation $6,783,325 from the Parkland Dedication Reserve Fund to fund land acquisitions and certain capital project $6,486,111 from the Emerald Ash Borer Reserve Fund $3,157,000 in projects from the Main Fleet Vehicle and Equipment Reserve Fund $2,095,000 in projects from the Fire Vehicles and Equipment Reserve Fund $1,110,000 in projects from the Roadway Infrastructure Reserve Fund $573,000 from the General Municipal Development Reserve Fund for various Cash in Lieu of Parking projects Business Plan and Budget W-13

15 Continuity Schedule of Capital Reserves and Reserve Funds Reserves and Reserve Funds Balance Jan 1, Contributions 2015 Interest 2015 Expenditures Balance Dec 31, 2015 Contributions Interest Expenditures Balance Dec 31, Total Deferred Funded Development Charges Reserve Fund 45,578 16, (25,650) 36,588 25, (51,010) 11,088 Parkland Dedication Reserve Fund 65,391 7,119 1,601 (17,308) 56,803 11,150 1,704 (6,783) 62,873 Total Deferred Funded 110,969 23,295 2,085 (42,958) 93,391 36,493 1,871 (57,793) 73,962 Total Other Funded Developer Contributions Reserve Fund 57,531 1,924 1,603 (4,171) 56, (36,146) 21,320 General Mun. Dev. Reserve Fund-Lot Levy 39, ,146 (36) 40, , ,791 General Mun. Dev. Reserve Fund-Other 9, (373) 10, (573) 10,145 Total Other Funded 106,446 2,762 3,031 (4,580) 107, ,978 (36,719) 73,256 Total Tax Funded 2009 Special Projects Capital Reserve Fund 2, (1,485) 1, ,285 Britannia Hills Golf Course Capital Excess Debt Financing 0 2, , ,085 Capital Reserve Fund 69,321 37,049 1,774 (45,188) 62,956 77,038 1,962 (50,463) 91,492 Community Facility Redevelopment Reserve Fund Courtneypark Artificial Turf Reserve Fund , ,164 Emerald Ash Borer 3,085 5, (4,228) 4,586 5, (6,486) 3,803 Facility Repair & Renovations Reserve Fund 3,818 11, (9,201) 5,927 12, (12,977) 6,092 Federal & Provincial Contributions 100,505 53,554 2,704 (61,290) 95,473 55,389 2,642 (63,027) 90,476 Fire Vehicles & Equipment Reserve Fund 367 3, (3,337) 390 2, (2,095) 401 Loyola Artificial Turf Soccer Field/Track Main Fleet Vehicle & Equip. Reserve Fund 538 3, (3,048) 802 3, (3,157) 825 Roadway Infrastructure Reserve Fund 4, (306) 5,217 1, (1,110) 5,362 Transit Vehicles & Equipment Reserve Fund 2, , ,319 Total Tax Funded 188, ,008 5,107 (128,083) 182, ,592 5,260 (139,316) 206,335 Total Capital Program Reserve Funds 406, ,065 10,223 (175,621) 383, ,423 9,108 (233,828) 353,552 Grand Total 515, ,660 11,931 (188,461) 488, ,319 10,839 (246,059) 455,304 Note: Numbers may not balance due to rounding. W Business Plan and Budget

16 10 Year Forecast Schedule The following chart summarizes the tax capital and subsidiary reserve funds opening balance, contributions, withdrawals, allocation to projects and closing balance. It is based on committed funds in dollars for the to 2025 capital forecast. The Reserve budgets are based on cash flow and ensure that each year s closing balance has a value equal to 10 per cent of the future 10 year capital forecasted spending. Tax Capital and Subsidiary Reserve Funds (Based on committed funds.) Description 2017 Note: Numbers may not balance due to rounding Total Opening Balance 79, , , , , , , , , ,824 79,461 Capital Infrastructure Levy 41,285 48,741 54,435 57,744 63,508 69,314 75,656 83,234 93, , ,511 Debt Financing 36,937 36,911 42,350 47,554 41,531 43,608 45,788 48,078 50,481 53, ,243 Interest Income 2,891 3,166 3,547 3,778 3,955 4,504 5,002 6,140 8,304 10,856 52,144 Transfers/Loans 34,462 (253) (256) (255) (250) (252) (254) (256) (258) (261) 32,168 Total Available Balance 195, , , , , , , , , ,485 1,303,527 Allocation to Projects 87,031 87,855 96, , ,126 99, , ,045 83,287 88, ,625 Closing Balance 108, , , , , , , , , , , Business Plan and Budget W-15

17 Federal and Provincial Contribution Reserve Funds These Reserve Funds include receipts from Federal and Provincial governments primarily related to Gas Tax and funding for transit initiatives, and roads and bridges. Description Total Opening Balance 95,473 90,476 96,906 87,312 69,401 66,600 37,288 32,926 29,626 28,539 95,473 Gas Tax Receipts 55,389 55,389 57,279 57,279 57,279 57,279 57,279 57,279 57,279 57, ,006 Interest Income 2,642 3,067 3,012 2,440 1, ,769 Transfers/Loans (16,092) (16,092) (15,617) (16,092) (15,700) (15,700) (15,700) (15,700) (15,700) (15,700) (158,094) Total Available Balance 137, , , , , ,096 79,645 75,178 71,843 70, ,153 Allocation to Projects 46,935 35,934 54,267 61,538 46,233 71,808 46,719 45,552 43,304 38, ,236 Closing Balance 90,476 96,906 87,312 69,401 66,600 37,288 32,926 29,626 28,539 31,917 31,917 Note: Numbers may not balance due to rounding. W Business Plan and Budget

18 Details of the Gas Tax Receipts Description Total Provincial Gas Tax 15,700 15,700 15,700 15,700 94, ,000 Federal Gas Tax (City Portion) 21,690 21,690 22,723 22, , ,164 Federal Gas Tax (City Portion from Region) 17,999 17,999 18,856 18, , ,842 Total 55,389 55,389 57,279 57, , ,006 Note: Numbers may not balance due to rounding. Provincial Gas Tax The use of Provincial Gas Tax funding to support Transit growth has allowed the expansion of Transit service with a reduced tax impact. Future Transit expansion will be funded through property taxes and transit revenues. The share of the Provincial Gas Tax is affected by ridership levels and may fluctuate in future years. Federal and Regional Portion of Federal Gas Tax Reserves The Federal Gas Tax funding can be used for up to two of the following capital programs: transit, road infrastructure, and storm drainage or energy conservation. To be eligible for funding, municipalities cannot reduce their existing/historical spending on capital projects. In order to help address the City s growing gridlock problems, Mississauga plans to invest Federal gas tax revenues to expand transit infrastructure, improve transit services, to help finance bus replacements and for road infrastructure including roadways and bridges. Municipalities across Canada continue to ask for an escalation to the Gas Tax to ensure its value increases at the rate of growth for these services. City portion receipts in 2015 were $20.6 million with a total of $225 million anticipated to be received over the next 10 year period. Also, the Region of Peel, since 2006 has flowed through any Federal gas tax receipts to the lower tier municipalities after accounting for TransHelp requirements. The City s capital forecast assumes this will continue and includes receipts totalling $18 million or $187 million over the next 10 years Business Plan and Budget W-17

19 Development Charges Reserve Funds All Services The following chart summarizes the opening balance, contributions, withdrawals, allocation to projects and closing balance for the Development Charges Reserve Funds as a result of this year's capital budget and forecast to In keeping with the City s Development Charge policies, Development Charge revenues and costs are closely monitored. Projects in the medium and longer term will be re-evaluated during the annual prioritization process of all Development Charge funded projects. In each budget year, projects are assessed in greater detail and viewed through a variety of filters to ensure that there are a balance of lifecycle projects, enhancements, and high priority new services including Development Charge funded projects. Description 2017 Note: Numbers may not balance due to rounding Total Opening Balance 36,588 11,088 (5,302) (8,820) (10,314) (2,966) 3,295 5,069 10,377 16,100 36,588 Development Revenue 25,343 27,783 28,063 28,346 28,631 28,920 29,211 29,505 29,802 30, ,706 Interest Income 167 (92) (218) (254) (73) ,185 Transfers/Loans (2,423) (718) (724) (730) (735) (741) (747) (753) (759) (766) (9,097) Total Available Balance 59,675 38,062 21,820 18,542 17,509 25,294 31,884 34,077 39,817 46, ,383 Allocation to Projects 48,587 43,363 30,640 28,855 20,475 21,998 26,815 23,699 23,717 13, ,101 Closing Balance 11,088 (5,302) (8,820) (10,314) (2,966) 3,295 5,069 10,377 16,100 32,282 32,282 W Business Plan and Budget

20 Cash in Lieu of Parkland Dedication Reserve Fund The revenue generated from cash in lieu of parkland dedication is expected to average $14.3 million over the 10 year forecast period. Increases occurring in future years are expected to be realized where sizable developments are not dedicating parkland. These projections are reviewed on an ongoing basis and any necessary amendments will be reflected in future budget documents. Closing balances are intentionally declining as more cash in lieu funding is being utilized. As the City borrows to fund capital projects it is financially prudent to use existing resources to reduce borrowing requirements. Description 2017 Note: Numbers may not balance due to rounding Total Opening Balance 56,803 62,873 40,985 41,388 33,548 24,377 26,572 20,040 8,860 1,961 56,803 Development Revenue 11,140 13,600 14,060 11,520 11,520 16,138 16,138 16,138 16,138 16, ,528 Interest Income 1,704 1,210 1,322 1, ,046 Transfers/Loans Total Available Balance 69,656 77,693 56,377 53,989 45,856 41,373 43,359 36,470 25,071 18, ,477 Allocation to Projects 6,783 36,708 14,989 20,442 21,479 14,802 23,319 27,610 23,110 14, ,474 Closing Balance 62,873 40,985 41,388 33,548 24,377 26,572 20,040 8,860 1,961 4,003 4, Business Plan and Budget W-19

21 Reserves and Reserve Funds Descriptions Reserve Name Purpose of the Fund Reserve for the Arts Provides funds to support the Arts in Mississauga Reserve for Assessment Appeals Provides for the contingent liability for possible refund of taxes in respect of outstanding assessment appeals pending against the City. Provides funds for legal and hearing fees related to major appeals Reserve for Building Permit Revenue Stabilization Provides for sufficient funds to continue operating and capital needs of the building permits process affected by fluctuating development Reserve for Commitments - City Provides unspent but committed monies from the Year s budget to fund obligations outstanding at year-end which will be paid in the upcoming year Reserve for Commodities Provides funds for the fluctuating costs of commodity based expenses such as hydro, natural gas, diesel, etc. Reserve for Development Stabilization Reserve for Early Retirement Benefits Provides for unspent but committed development, planning and inspection work or for stabilization of the revenue budget in years when the development-related revenues received is below the five-year average Provides for the city s portion of the early retirees benefit premiums Reserve for Elections Provides for the cost of holding municipal elections by making annual contributions to the reserve Reserve for General Contingencies Provides monies for unforeseen or uncertain liabilities and contingencies Reserve for Labour Settlements Provides funds for potential obligations resulting from outstanding labour agreements and labour related issues Reserve for Legal Settlements Provides for potential costs of outstanding legal matters Reserve for Planning Process Update Reserve for Vacation Pay Reserve for Winter Maintenance Provides monies for periodic updates to Official Plans, District Plans and Zoning by-law review, as required by the Planning Act R.S.O c. P.13, as amended Provides for the liability of unpaid vacation time earned by permanent employees of the City as at December 31 st Provides funds for stabilizing the City s Winter Maintenance Program. Operating surplus monies from this program may be placed in this reserve W Business Plan and Budget

22 Throughout this document there are a number of references to various reserves and reserve funds, which are explained below. Reserve Fund Name 2009 Special Projects Capital Reserve Fund Britannia Hills Golf Course Reserve Fund Purpose of the Fund Provides funds, made available from re-allocated grant funded projects, set aside for special capital projects throughout the City Provides funds for the construction and maintenance of the former Britannia Hills Golf Course (now called BraeBen) Capital Reserve Fund Provides funds, including capital cash receipts not required for the retirement of debenture debts as prescribed by Section 413 (2) of the Municipal Act, 2001 S.O. 2001, c.25. Funds may be used for: The construction or improvement of any municipal works The acquisitions or expropriation of land required for Municipal purposes The acquisitions of vehicles or equipment for Municipal purposes The payment of debentures of the Corporation for any the aforementioned purposes Cash in Lieu of Parking Reserve Fund Pursuant to the Planning Act R.S.O c.p.13 as amended, monies received in lieu of parking are to be set aside in this reserve fund and are to be spent only for parking initiatives Cash in Lieu of Parkland Dedication Pursuant to the Planning Act R.S.O c.p.13 as amended, monies received in lieu of parkland dedication are to be set aside in this reserve fund and are to be spent only for the acquisition of land to be used for park or other recreational purposes, including the erection and repair of buildings and the acquisitions of machinery for park or other public recreational purposes City Centre Promotions Reserve Fund Provides monies of the purpose or conducting a City Centre Promotion Campaign Community Facility Redevelopment Reserve Fund Courtneypark Artificial Turf and Synthetic Track Reserve Fund Developer Contribution Reserve Funds Provides funds for the renovation and refurbishing of facilities, such as community centres, pools, libraries and arenas Provides funds for the replacement and future maintenance of the Courtneypark artificial turf, synthetic track and its related equipment These reserve funds consist of contributions for specific municipal infrastructure collected as a condition of land development. Examples include, but are not limited to sidewalks, roads, traffic signals and tree planting Business Plan and Budget W-21

23 Reserve Fund Name Purpose of the Fund Development Charges Reserve Fund: City-wide Engineering Transit Fire Recreation Library Public Works Parking General Government Hershey Debt Living Arts Centre Debt Pursuant to the Development Charges Act, 1997, S.O. 1997, c. 27, as amended, monies collected under the Act shall be placed into a separate reserve account for the purpose of funding growth related net capital costs for which the development charge was imposed under the Development Charges By-law Storm Drainage Facilities Repair and Renovations Provides for capital projects for repairs and renovations to City facilities Reserve Fund Federal Public Transit Reserve Fund Revenues are intended to support expenditures for municipal public transportation services Fire Training Centre Replacement Reserve Fund Fire Vehicles and Equipment Replacement Reserve Fund Provides funds for the construction of a new fire training centre Provides funds for the replacement of Fire vehicles and equipment approved in the annual capital budget. Cash receipts resulting from the sale of fire vehicles and equipment shall be deposited into this reserve fund Gas Tax (Federal) Reserve Fund Gas tax revenues are intended to support expenditures for municipal public transportation services, stormwater systems or community energy systems Gas Tax (Provincial) Reserve Fund Gas tax revenues are intended to support expenditures for municipal public transportation services General Municipal Development Reserve Fund Provides funds required to service growth in the City, including, but not limited to municipal infrastructure required to service growth in the City, including but not limited to municipal highways, recreational facilities, fire stations and equipment, libraries and land. This Reserve Fund consists of funds collected under lot levy policies in effect prior to 1991 W Business Plan and Budget

24 Reserve Fund Name Main Fleet Vehicle and Equipment Replacement Reserve Fund Purpose of the Fund Provides funds for the replacement of main fleet vehicles and equipment approved in the annual capital program. Cash receipts resulting from the sale of main fleet vehicles and equipment shall be deposited into this reserve fund Metrolinx Bikelinx Reserve Fund Provides funds for the purchase and installation of bicycle racks on transit vehicles and secured and safe bicycle parking Miscellaneous Contributions Reserve Fund Mississauga Garden Park Development and Maintenance Reserve Funds Mississauga Rapid Transit (MRT) Reserve Fund MoveOntario 2020 Higher Order Transit Reserve Fund Ontario Bus Replacement Program Reserve Fund Provincial Road and Bridge Infrastructure Reserve Fund Provincial Transit Grant Reserve Fund Provides funds such as those generated through fund raising or community donations, for miscellaneous works to be undertaken by the City to offset other miscellaneous expenses Provides funds solely for the purpose of the Mississauga Garden Park (now Riverwood) Development as well as providing funds for the long term maintenance costs of the park Provides for the construction and maintenance of the MRT bus way system and services. $65 million was received from the Province of Ontario in 2006 (now called the Mississauga Transit Way) Provides funds to be used for the MoveOntario 2020 Dundas and Hurontario Higher- Order Transit Corridor Development Provides funds for the replacement of municipal transit buses Provides funds to be used for the investment in the City of Mississauga s capital municipal roads and bridges infrastructure Provincial funding provided to improve and expand public transit Roadway Infrastructure Maintenance Provides fund for the reconstruction and resurfacing of the City road network Reserve Fund Sick Leave Reserve Fund Provides for the payment to employees for vested sick leave credits as defined in Bylaw Transit Vehicles & Equipment Replacement Reserve fund Provides funds for the replacement of Transit vehicles and equipment approved in the annual capital budget. Cash receipts resulting from the sale of Transit vehicles and equipment shall be deposited into this reserve fund Business Plan and Budget W-23

25 Reserve Fund Name Purpose of the Fund Workers Compensation Fund Provides funds for the payment of compensation, outlays and expenses assessed to be payable by the City as an employer under the Workplace Safety and Insurance Act, 1997 S.O. 1997, c.16 as amended. Provides funds for actuarial services to establish the appropriate level W Business Plan and Budget

26 Appendix 1: Reserves and Reserve Funds Transfers Transfers from the Operating Program to the following Reserves and Reserve Funds in are: $42,205,649 To the Capital Reserve Fund $5,600,000 To Emerald Ash Borer Reserve Fund $2,336,800 To the Insurance Reserve Fund $1,400,000 To the Worker s Compensation Reserve Fund $1,309,000 To the Reserve for Assessment Appeal $1,008,900 To the Reserve for General Contingency $1,000,000 To the Reserve for Commodities $600,000 To the Reserve for Elections $205,000 To the City Centre Off Street Parking Reserve Fund $163,000 To the Reserve for the Arts $100,800 To the Loyola Artificial Turf Soccer Field and Track Reserve Fund $78,000 To the Reserve for Group Benefits $70,500 To the Reserve for CIL Parking Streetsville $65,100 To the Reserve for Courtney Park Turf/Synthetic $60,400 To the Reserve for Britannia Hills Golf Course $32,600 To the Reserve for CIL Parking Port Credit and Streetsville $30,000 To the Reserve for Mississauga Garden Park Development Business Plan and Budget W-25

27 Transfers to and from Reserves and Reserve Funds, based on the actual expenditures throughout the year of 2015 are as follows: Arts and Culture initiatives Assessment appeals and tax cancellations charges City Center Off-Street Parking Early retirement benefits, group benefits and other labour related expenses Economic Development Office and Project Support Management Office for transfers such as Mississauga Business Enterprise Centre (MBEC) initiatives and project support training Insurance claims and premiums Maintenance for Britannia Hills Golf Course, Mississauga Garden Park Development, CIL Parking Port Credit, and Courtney Park Turf/Synthetic One-time costs associated with reviews, studies, master plans, by-election expenditures, and employee survey Ongoing Transit bus shelter advertising Sick leave payments Workers compensation payments Transfers within Reserve Funds in are listed below: Transfers from the Capital Reserve Fund to the following reserve funds: $12,977,203 $3,157,000 $2,095,000 $1,110,000 Facility Repair and Renovations Reserve Fund Main Fleet Vehicle and Equipment Reserve Fund Fire Vehicle and Equipment Reserve Fund Roadway Infrastructure Maintenance and Replacement Reserve Fund W Business Plan and Budget