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.
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