Report to/Rapport au :

 

Transit Committee

Comité du transport en commun

 

October 22, 2009 / le 22 octobre 2009

 

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

 

Contact Person/Personne ressource:Mona Monkman, Deputy City Treasurer – Corporate Finance/ Trésorière municipale adjoint – Contrôleur Finance

Finance Department/Service des Finances

(613) 580-2424 x41723, Mona.Monkman@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-CMR-FIN-0050

 

 

SUBJECT:

TRANSIT COMMITTEE:  2010 DRAFT OPERATING AND CAPITAL ESTIMATES

 

 

OBJET :

COMITÉ DU TRANSPORT EN COMMUN : PREMIER PROJET DE BUDGET DE FONCTIONNEMENT ET D’IMMOBILISATIONS DE 2010

 

 

REPORT RECOMMENDATIONS

 

1.                  That the Transit Committee approve the draft 2010 operating and capital estimates for the Transit Services Department.

 

2.                  That the Committee Estimates be forwarded to the Audit, Budget and Finance Committee for inclusion in the 2010 Draft Budget, along with any supplementary budget information reports considered with the Estimates.

 

3.                  That capital budget forecasts for years beyond 2010, be received.

 

 

RECOMMANDATIONS DU RAPPORT

 

1.                  Que le Comité du transport en commun approuve le premier projet de budget de fonctionnement et d’immobilisations du Service de transport en commun de 2010.

 

2.                  Que les prévisions du Comité soient transmises au Comité de la vérification, du budget et des finances aux fins d’inclusion dans le budget préliminaire de 2010 de même que tout rapport sur les renseignements budgétaires supplémentaires examinés avec les prévisions.

 

3.                  Que les budget prévisionnels d’immobilisations au-delà de 2010 soient déposés.  

 

BACKGROUND

 

On June 10, 2009, City Council approved a new budget process whereby each standing committee would receive the draft operating and capital estimates for areas within that Committee’s Terms of Reference.  Each standing committee would also review and challenge the capital projects being proposed for each service area. 

 

The June 10 report indicated that there was no new Budget Directions document this year.  Staff were to develop the budgets, for Committee and Council consideration, by taking into account the existing Fiscal Framework and term of Council priorities. 

 

That report also noted that any budget adjustments and/or budget options identified by staff during their budget preparation process would be provided as information to standing committees, for purposes of the Committees’ consideration and prioritization.

 

On September 23, 2009, City Council further approved that the Standing Committee Draft Estimates be prepared on the basis of no news needs.  The new needs were to be indicated separately with the full rationale provided, in order to be considered as part of the Standing Committees’ review. 

 

 

DISCUSSION

 

The Standing Committee will review the draft estimates for the departments they oversee.

 

Following the review of draft estimates by each Standing Committee, the Audit, Budget and Finance Committee will review these Standing Committee recommendations and prepare a recommended draft budget for City Council for consideration.  Key dates are in the following budget calendar.

 

November 17, 2009

All Committee budget estimates rise to Audit, Budget and Finance Committee

December 9, 2009

Consolidated 2010 draft budget tabled at Council

January 25 – 29

Committee of the Whole and Council consideration and approval of the 2010 Budget

 

Operating Budget Estimates

 

The Operating Budget estimates have been prepared based on a review of the 2009 results to date; new needs and growth pressures have been identified.  The following section – “Budget Documentation” explains the types of budget changes for 2010.

 

As per Council direction, there was no pre-determined tax increase target/guideline used in developing these estimates.

 

Capital Budget Estimates

 

The 2010 Capital program was prepared using two key assumptions:

 

The program supports the “incremental” requirements of the Infrastructure Stimulus Funding program of 2009.  Therefore, the 2010 capital program reflects the works that Council had anticipated would be undertaken, based on the forecast 2010 capital program that was presented during the approval of the 2009 budgets.

 

The 2010 Capital program includes an additional $20 million allocated to various City departmental programs, in order to reduce the funding gap for the renewal of City assets.

 

Budget Documentation

 

Budget materials presented are similar to those used during the 2009 budget process.   

 

Budgetary information is provided for each department.  

 

A briefing note describes program objectives, performance measures and organizational information.  Schedules of financial information show the revenues, expenditures and net requirements on a branch-by-branch basis.  Changes in resource requirements – expenditure, revenues and staffing - for 2010 are outlined and are based on the best available information at this time and on 2009 experience.

 

Budget adjustments (changes) from 2009 budgets are categorized using the following breakdowns:

 

Base adjustments            associated with 2009 actual results;

Maintain  Services          additional requirements to deliver current programs at approved service standards;

Legislative                      increases required to deliver cost shared provincial programs along with impacts of new provincial or federal legislation;

Growth                           additional resources required to maintain new infrastructure, annualize 2009 program expansions and meet programming demands from population growth;

New Services / Needs     increases required to implement new programs stemming from Council reports, Auditor General recommendations, organizational transformation initiatives or pending staff reports.  New needs are identified as per Council direction and a rationale is provided;

Efficiencies                     reflects the Management efficiency targets;

User fees                        increased revenues from fee increases per Council direction.

 

 Additional schedules provided include:

 

Explanatory notes            provided on the projected 2009 results and on the rationale behind the proposed changes to the budgetary requirements

 

User fees                         – proposed changes to the fees for City programs and services

 

Budget Options                adjustments to programs or increases in fees to support the achievement of Council’s priorities; including service reductions or eliminations for committee consideration where appropriate

 

Capital Projects              – the proposed capital projects with project details.

 

 

CONSULTATION

 

The public consultation on the Draft Operating and Capital estimates will be conducted at the standing committee meetings, through Councillor-ward meetings and the public delegations sessions to be held from January 25 to 27 by Committee of the Whole. 

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS:

 

There are no legal/risk management impediments to implementing the recommendations in this report.

 

 

FINANCIAL IMPLICATIONS

 

Financial implications are identified within the report. 

 

 

SUPPORTING DOCUMENTATION

 

Document 1 - 2010 Draft Operating and Capital Estimates; distributed separately and held on file with the City Clerk.

 

 

DISPOSITION

 

Estimates and any Committee amendments will be forwarded to the Audit, Budget and Finance Committee for inclusion in the 2010 Draft Budget.