TAMRMS#: B06
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Budget Amendment-Synergy Building
Presented by: Diane McMordie, Director of Financial Services
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RECOMMENDATION(S)
recommendation
1. That the 2018 Operating Budget for the Synergy Building located at 110 Carleton Drive, as detailed in the attachment titled “2018-2019 Operating Budgets for Synergy Building”, be approved.
2. That the following Postponed Motion be approved:
PM-19-018
That the 2019 Operating Budget for the Synergy Building, as detailed in the attachment titled “2018-2019 Operating Budgets for Synergy Building”, be approved.
and;
That administration incorporate the budget amendment for consideration within the 2019 Municipal Operating Budget on December 17, 2018
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PURPOSE OF REPORT
The purpose of the report is make amendments to the 2018 and 2019 operating budgets to include the anticipated revenue and expenses associated with the purchase of the Synergy Building located at 110 Carleton Drive.
ALIGNMENT TO COUNCIL STRATEGIC PRIORITY
N/A
ALIGNMENT TO ADMINISTRATIVE PRIORITY
N/A
ALIGNMENT TO SERVICE DELIVERY
Service Name: Financial Planning
Definition: Stewardship of the development of annual operating and capital budgets for Municipal and Utility Operations.
Service Component: Municipal Operating Budget Development
COUNCIL DIRECTION
N/A
BACKGROUND AND DISCUSSION
In July 2018 Council approved Administration’s recommendation to purchase the Synergy Center property located at 110 Carleton Drive. The acquisition was completed effective August 28, 2018. In order to ensure that the 2018 and 2019 budgets accurately capture the revenues and expenses of the building they require adjustment to reflect the purchase.
The building was acquired through internal financing with repayment over 30 years at a 2.89% interest rate. As the first few years will result in a surplus to the City, which will be offset when the City transitions from leasing to fully utilizing the building space, the surpluses will be transferred to reserves to be used during the transition years, which will mitigate the tax impacts from the building.
The 2018 and 2019 budgets are provided in the attachment titled “2018-2019 Operating Budgets for Synergy Building”
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
None
IMPLICATIONS OF RECOMMENDATION(S)
The 2018 and 2019 Operating budgets will include the operations of the Synergy Building.
Financial:
The 2018 operating revenue and expense would be increased by $262,400, resulting in no tax impact.
The 2019 operating revenue and expense would be increased by $783,300, resulting in no tax impact.
Legal / Risk:
As per the MGA (section 248.2), council authorization is required for expenditures and/or revenues that are not included in the approved budget. This includes any new services, programs or projects undertaken
Program or Service:
None at this time
Organizational:
None at this time
ALTERNATIVES AND IMPLICATIONS CONSIDERED
There are no alternatives available
Report Date: November 26, 2018
Author(s): Diane McMordie
Committee/Department: Finance & Assessment Department
Deputy Chief Administrative Officer/Chief People Officer: Michelle Bonnici
Chief Administrative Officer: Kevin Scoble