Report to: General Committee Date
of Meeting:
SUBJECT: Status of Capital
Projects as of
PREPARED BY:
RECOMMENDATION:
That the report
dated
And that $11.73M from closed capital projects be transferred to the sources of funding as listed on Exhibit A;
And that Staff be authorized and directed to do all things necessary to give effect to this resolution.
PURPOSE:
To inform Council about the status of capital projects as of
BACKGROUND:
CAPITAL PROJECTS TO BE CLOSED
There are 491 capital projects ($176.72M budget) recommended for closure. Of these, 350 projects were not fully spent, resulting in a total of $11.73M to be returned to the original sources of funding as listed in Exhibit A. The details by project are listed in Exhibit A-1. The remaining 141 projects, as listed in Exhibit A-2, were fully spent.
Over the past year, departments have been working closely with the Finance department to ensure that completed projects are being closed in a more timely manner. This is evident by the 491 capital projects being closed at this time as compared to 265 projects that were closed in the last closed capital report dated March, 2008.
STATUS OF OPEN CAPITAL
PROJECTS
The total capital budget for open projects at
Staff has conducted a compliance review on all open capital
projects. In accordance with the Capital
Budget Control Policy Section 4.1, projects that remain inactive for a period
of twenty-four months or longer are subject to closure. The non-compliant
projects were discussed and reviewed by the business units, of which a majority
of these inactive projects are being closed and are included in Exhibit A.
FINANCIAL
CONSIDERATIONS:
A detailed listing of capital projects with unexpended funds totaling $11.73M, to be closed upon approval of this report, is outlined in the following Exhibits:
EXHIBIT A - CAPITAL PROJECTS TO BE CLOSED
Exhibit A “Summary of Closed Capital Project Funding
to be Transferred” summarizes where the closed capital project balances will be
transferred;
Exhibit A-1 “Closed Capital Projects – With Funds to
be Returned to Original Sources of Funding” provides a detailed summary by
project where the closed capital project balances will be transferred;
Exhibit A-2 “Closed Capital Projects – Projects that
have been Fully Spent and have no Balances to Transfer” outlines projects that
have been 100% spent and therefore have no balance to return to their original
funding source(s).
Exhibit A summarizes the return of funds from the closed capital projects to the original sources of funding. In accordance with the Capital Budget Control Policy, the remaining funds from the closure of operating budget and life cycle replacement and capital reserve funded capital projects will be transferred to top up the capital contingency project to a maximum of $250,000. Exhibit A shows a transfer of $241,854 to top up the capital contingency project. Further closures of operating budget and life cycle reserve funded capital projects in the amount of $3,187,708 will be returned to the life cycle replacement and capital reserve. Therefore, the total amount being closed from projects that were originally funded by the operating budget and life cycle replacement & capital reserve fund is $3,429,562 ($3,187,708 + $241,854)
Similarly, there are
In summary, the net amount $11.73M as outlined in Exhibit A to be transferred back to the original sources of funding is as follows:
DCA $6.35M
Design DC Capital Contingency $0.10M
Planning DC
Capital Contingency $0.01M
Total $11.73M
The majority of the projects listed in Exhibit A-1 are projects that were completed within budget. Projects that were under spent will have the balance transferred back to the original source(s) of funding. Projects with over expenditures that fall within the guidelines established in the Expenditure Control Procedures will have the necessary funds allocated from other identified closed projects.
Exhibit A-2 lists the projects that have been completed on budget and have no remaining funds to be transferred back to the original sources of funding.
As of
The following summarizes the status of open capital:
Open Capital $266.07M
Total Encumbered $127.65M 48%
Unencumbered/Uncommitted $138.42M 52%
This indicates that 48% of the total approved open capital project budget is encumbered.
These totals do not include the 491 capital projects recommended for closure in this report.
The
total encumbered of $127.65M includes commitments of $32.40M and expenditures
of $95.25M.
Commitments refer to purchase orders (
REQUEST FOR ADDITIONAL FUNDING
OF AN APPROVED CAPITAL PROJECT
Included in the closed capital summary in Exhibit A is one completed project for which a portion of the remaining funds has been identified as a funding source to accommodate the shortfall for an unrelated capital project in order to complete the project. According to the Town’s Capital Budget Control Policy, requests for additional funding will be included in this semi-annual report to Council for approval.
The project with the request for additional funds is as follows;
Project # 4778 Replace Carpeting at Thornhill Library : This project was initially budgeted at a cost of $84,700 and the project was completed for a total cost of $64,925, leaving a balance of $19,775. From this balance, $10,000 is being requested to be transferred to project # 5157 (Replace Circulation Desk at Thornhill Library), which requires additional funds in order to complete the project. The remaining funds of $9,775 will be returned to the original source of funding as outlined in Exhibit A-1.
RECOMMENDED
BY: ________________________ ________________________
Barb Cribbett, Treasurer Andy Taylor, Commissioner
Corporate Services
ATTACHMENTS:
Exhibit A - Summary of
Closed Capital Project Funding to be Transferred
Exhibit A-1 - Closed
Capital Projects – With Funds to be Returned to Original Sources of Funding
Exhibit A-2 - Closed Capital Projects – Projects that
have been Fully Spent and have No Balances to Transfer