TAMRMS#: B06
6.2
Information Item Only
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Off-Site Levy Recovery Fund- Policy Compliance Report
Presented by: Stephen Graham, Senior Business Analyst, Financial & Strategic Services
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SUMMARY
This report communicates that the Offsite Levy Recovery Fund is in compliance with the criteria defined in Council Policy C-FS-20 Offsite Levy Recovery Fund Utilization and provides some background on the purpose of the reserve fund.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
N/A
BACKGROUND AND DISCUSSION
The City occasionally provides up-front funding for offsite levy infrastructure projects to help facilitate development in areas prioritized by the City. The funding is provided through the use of debentures and the principal and interest is in turn recovered from the offsite levy system through future offsite levy fees. The distributions to front-ending parties are governed by Council Policy C-P&E-08 Offsite Levy Framework. The Offsite Levy Recovery Fund is a reserve fund that has been set up for the purpose of managing the cash flows related to this debt and its subsequent recovery from the offsite levy system.
To mitigate risks related to front-ending, Administration has developed a financial model that tracks and projects cash flows for current and approved front-ending debt servicing expenditures and future offsite levy receipts using information from the Offsite Levy model, which is managed by the City's Engineering department.
To further ensure that the City is properly safeguarding assets related to this process, Council Policy C-FS-20 Offsite Levy Recovery Fund Utilization was developed. This policy contains directives related to the use of this fund, including the following under Section 2.
2. The OLRF shall be restricted to the financial support for the City front-ending of strategic OSL projects as supported by Council Policy C-P&E-09 Off-Site Levy Front-ending Prioritization Criteria.
The policy also includes some fin...
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