ADMINISTRATIVE REPORT

                                                       Date:  July 14, 1995


   TO:       Vancouver City Council

   FROM:     General Manager, Corporate Services

   SUBJECT:  1995 Operating Budget - June Budget Review



   RECOMMENDATION

        THAT  Council approve the adjustments to  the 1995 Operating Budget
        as proposed in this report.

   GENERAL MANAGER'S COMMENTS

        The General  Manager of  Corporate Services RECOMMENDS  approval of
        the foregoing.

   COUNCIL POLICY

   Council has instructed the Director  of Finance to report on  the status
   of the City's  Operating Budget as of  June 30 and September  30 of each
   budget year.

   PURPOSE

   In accordance with Council s standing instructions, the following report
   reviews the status of the 1995 Operating Budget as of June 30, 1995.

   DISCUSSION

   The  intent of  June  Budget  Review is  to  generally focus  on  budget
   adjustments  that   are  necessary   because  of  factors   external  to
   departmental budgets which  have arisen since  the Operating Budget  was
   approved  in  May.   Departments are  expected  to operate  within their
   budget  allocations  approved by  Council  and,  where specific  funding
   problems  arise, are expected to  find the means  to address them within
   those budgets.   In cases  where alternative means  of addressing  these
   problems  have  been exhausted,  adjustments  are  normally referred  to
   Council at September  Budget Review.Finance staff have reviewed the 1995
   Operating Budget and  have identified no significant  items that require
   action at this time, with the exception of the recommendation related to
   Contingency  Reserve discussed  below.    We  will continue  to  monitor
   departmental activities leading to the September Budget Review.

   CONTINGENCY RESERVE FUNDING

   The Operating Budget provided a general provision in Contingency Reserve
   of  $1,082,100,  which is  lower than  the  amount provided  in previous
   budget years.  To date, the combination of approvals by the City Manager
   ($32,700) and  by  City Council  ($811,300)  has reduced  the  available
   funding to $238,100.   In  addition, there are  outstanding and  pending
   items totalling  $361,000 which  represent potential draws  against this
   balance.  Several of these pending items will be before Council prior to
   the  September Budget  Review,  which is  the  next opportunity  to  add
   funding to Contingency Reserve.

   It is  possible at  this  time to  supplement the  general provision  in
   Contingency  Reserve by  $298,600.   This  funding has  become available
   since  the  Operating  Budget  was approved  and  represents  additional
   revenue in the form of receipts-in-lieu of taxes from BC  Gas Inc. under
   Section  398  of the  Vancouver  Charter.   Addition of  these  funds to
   Contingency Reserve will ensure  that funding is available to  deal with
   pending and emergent items over the next several months. 


                       *     *     *     *     *