3. 2010 BUDGET
CONTINGENCY ACCOUNT: FUNDING OF ONE-TIME
BUDGETARY ITEMS
COMPTE POUR LES
IMPRÉVUS BUDGÉTAIRES DE 2010 : FINANCEMENT DES ÉLÉMENTS BUDGÉTAIRES UNIQUES
That Council approve:
1.
The
criteria with respect to accessing the funds in the Corporate Contingency
Account, as outlined in Document 1; and
2. The one-time operating budget
requirements in the amount totalling $1,158,000, as identified in the report.
Que
le Conseil approuve :
1.
Les critères relatifs à l’accès aux fonds du compte
municipal pour imprévus, comme il est exposé dans le document 1; et
2.
Les exigences budgétaires de fonctionnement
ponctuelles d’un montant total de 1 158 000 $, tel qu’il est défini
dans le présent rapport.
Documentation
1. City Treasurer’s report dated 9 February 2010 (ACS2010-CMR-FIN-0008).
2. Extract of Draft Minute, 16 February 2010 to be distributed prior to Council.
Report to/Rapport au :
Audit, Budget and Finance Committee
Comité de la vérification, du budget et des finances
and Council / et au Conseil
9 February 2010 / le 9 février 2010
Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière
municipale
Contact
Person/Personne ressource : Mona Monkman, Deputy City Treasurer Corporate
Finance/Trésorier municipale adjointe Finances municipales
Finance
Department/Département de finance
(613)
580-2424 ext 41723, Mona.Monkman@ottawa.ca
|
Ref N°: ACS2010-CMR-FIN-0008 |
SUBJECT:
|
2010
BUDGET CONTINGENCY ACCOUNT: FUNDING OF
ONE-TIME BUDGETARY ITEMS |
|
|
|
OBJET :
|
COMPTE POUR LES IMPRÉVUS
BUDGÉTAIRES DE 2010 : FINANCEMENT DES ÉLÉMENTS BUDGÉTAIRES UNIQUES |
That the Audit, Budget and Finance Committee recommend
Council approve:
2.
The
criteria with respect to accessing the funds in the Corporate Contingency Account,
as outlined in Document 1; and
2. The one-time operating budget
requirements in the amount totalling $1,158,000, as identified in the report.
Que le Comité de la
vérification, du budget et des finances recommande au Conseil
d’approuver :
3.
Les critères relatifs à l’accès aux fonds du compte
municipal pour imprévus, comme il est exposé dans le document 1; et
4.
Les exigences budgétaires de fonctionnement
ponctuelles d’un montant total de 1 158 000 $, tel qu’il est défini
dans le présent rapport.
The 2010 operating budget, as adopted by Council on January 28, 2010, included a $2.8 million Corporate Contingency Account to provide funding for one-time operating expenditures and unanticipated operating expenditures that may occur during the year.
Examples of items that would be funded from this account include, but are not limited to:
As stated in the 2010 budget document, all funds requested from this account are to be separately approved by Council. Any surplus in the account at year-end would be contributed to the tax stabilization reserve, unless the City tax supported accounts are in an overall deficit. The 2007 Fiscal Framework document recommended that funds be maintained in a tax stabilization account in order to manage annual deficits.
The criteria on which items can be funded and the process for accessing the Corporate Contingency Account is included in Appendix 1 for committee approval.
During the development of the 2010 budget, staff identified one-time expenditures that could be funded from the contingency account in 2010. All departments have assessed whether the need still exists and whether the requirement needs to be addressed and funded at this time.
Based upon this review, the following expenditures are recommended to Committee and Council for approval, with funding to be transferred from the Corporate Contingency Account. The items recommended at this time, are itemized in Table 1. They represent firm commitments already in place or planned expenditures that if approved, will commence during the first quarter.
In prior years, many of these expenditures would have come forward as requests for one time funding during the budget development process. As this is a new process for 2010, staff have prepared one consolidated report of the immediate requests. On a go forward basis, Departments will be required to present a report justifying the need for and rationale for a transfer of funds from the Corporate Contingency account in order to receive funding. Based on a departmental review of potential one-time funding requirements, additional requests totalling $1.4 million may be submitted to Committee and Council for consideration during the upcoming months.
Table 1 –
Expenditures recommended for funding from the Corporate Contingency Account
|
Description |
Rationale |
Amount
|
|
Finance |
|
‘000 |
|
One temporary Payroll Business
Analyst to support the time/leave, Pension redesign and RPA automation
projects. |
In order to move forward with
automation and support pension redesign, Payroll requires a temporary
business analyst to assist with the various projects. Without this resource,
the testing and implementation of the SAP system pension redesign, which is
required to meet legislation, and RPA automation, will be delayed. |
85 |
|
Two temporary Payroll Business
Analysts to support SAP technical development, system redesigns to increase
efficiency, legislated and collective agreement changes, ongoing SAP release
and maintenance |
Payroll has been tasked with
simplifying the SAP payroll system since its go-live in 2004.This requires
system redesigns to increase efficiency (includes time/leave automation, auto
tracking of sick leave, pension &benefit redesign) plus the on-going
implementation of collective agreement changes, SAP vendor releases and
system maintenance. Without these resources Payroll will be unable to
maintain and enhance the HR/Payroll modules within the SAP system. Payroll
will not have the ability to meet legislated deadlines and implementation of
collective agreement changes will be delayed. This will create ongoing
payroll problems and poor employee/employer relationships. |
160 |
|
Temporary Time Transaction staff
to support the SAP system and ensure audit compliance for time leave forms
for 40% of the corporation. |
Time Transaction staff (1
supervisor, 2 timekeepers-until end of June) are required to support the SAP
time entry process including manual and automated processes, ensure audit
compliance for time leave forms and for training approx. 100 decentralized
time entry staff. Without these
positions, Payroll will be unable to support the automated time/leave function,
which will create delays in payments to employees and create poor
employee/employer relationships. |
120 |
|
Legal Services |
|
|
|
Various Ontario Municipal Board
(OMB) hearings - primarily the Official Plan appeals regarding urban
boundaries. |
Specialized legal expertise will
be required to support the City Clerk & Solicitor Department in providing
legal opinions and/or representing the City in dealing with the 29 appeals to
the City's Official Plan. |
500 |
|
Settlement costs |
As directed by Council, staff
proceeded to appeal the OMB decision to the Ontario Superior Court pertaining
to the Minto development in Manotick. The City was unsuccessful in the
appeal and the Court has ruled that the City reimburse Minto the sum of
$50,000 for costs. |
50 |
|
Human Resources |
|
|
|
Funding
to conduct an employment systems review.
The outcome of the review/audit and workforce analytics will form the
basis for a diversity strategy and provide input to ongoing proactive
initiatives. |
The
legislated Employment Equity Act requires the City to undertake periodic
employment systems reviews to establish its Diversity Plan which includes
identifying and eliminating workplace barriers and putting into place
initiatives aimed at achieving a diverse and inclusive workplace. The review
is required to demonstrate the City is fulfilling its obligations under the
Act, the Canadian Human Rights Commission and the Accessibility for Ontarians
with Disabilities Act (AODA). Diversity initiatives assist staff to deliver
the highest level of service to their diverse clients, whether internal or
external and ensures people feel valued and respected. |
100 |
|
Public Works |
|
|
|
Crew Leader Training
Program. Program start-up costs. Training customization, internal course
development, and TJ Mahoney Road Supervisor Certification School. |
Significant effort is needed
establish and deliver training to incumbents and trainees in the Crew Leader,
Maintenance Coordinator, and Zone Supervisor positions. Purchased Service costs are broken out as
follows: $36,000 to customize 6 courses for Public Works context; $30,000 to
develop 3 new courses (Salt Management, Supervisory Responsibility - Vehicles
and Equipment, and Financial Management; and $22,000 to send 11 people to TJ
Mahoney Road Supervisor Certification School |
78 |
|
Parks, Buildings &
Grounds |
|
|
|
Grant to Central Canada
Exhibition for the 2010 portion of rent |
Approved by Council July 9, 2008
- Report ACS2008-ETS-RPM-0013. Council agreed to provide
continued financial support to Central Canada Exhibition of $125,000 in 2008,
which is to be reduced in each successive year until 2012 when the grant is
eliminated. In 2010, the grant amount
is set at $65,000. |
65 |
|
Total request |
|
1,158 |
Departments were consulted in the development of the one-time funding request list.
There are no legal/risk management impediments to implementing the recommendations in this report.
The 2010 approved budget for the Corporate Contingency account was $2.8 million. If the report recommendations are approved by Committee and Council, the remaining balance in the account would be $1.6 million.
There are no rural implications associated with this report.
Document 1 - Funding criteria and process for the Corporate Contingency Account
Subject to Committee and Council approval, the Finance department will make the necessary budget transfers from the Corporate Contingency Account to the appropriate department.
Document 1
Corporate
Contingency Account – Funding Criteria and Process
1) An annual budgetary allocation is recommended to be made from the City-wide tax levy in order to create a Corporate Contingency Account with the amount to be determined by Council through the budget approval process.
2) Funds in this account are to be used to address one-time operational requirements that have not been included in the Council approved budgetary allocations within tax supported programs and services (excluding Transit). The following examples are intended to illustrate the typical situations under which funds could be accessed from this account.
3) All requests are to be submitted to the Audit Budget & Finance Committee for review and recommendation to Council.
4) Any unspent funds at year-end are to be contributed to the City’s Tax Rate Stabilization Reserve Fund unless the City’s tax supported operations are in an overall deficit situation.