guidelines be expanded at this time to recognize the ability to potentially leverage project surplus funding to also mitigate pandemic costs if required.

Exchange of funding sources between projects

Frequently, administration needs to exchange funding sources between capital projects in order to maximize the available funding and/or to better leverage grant funding opportunities. These exchanges do not alter the total funding approved by council nor do they impact the timing of the capital projects. Normally Administration would bring each funding exchange request to council for approval. However, these approvals increase administrative effort and can delay the process. Therefore, it is recommended that these housekeeping approvals be delegated to the CAO.

Project surplus and deficit guidelines

• 1. Project deficits will continue to be mitigated through various options, including but not limited to; redirecting other project surplus funding; vendor negotiations; leveraging third party funding; changes to project scope; use of reserve funding and/or; additional requests in future capital budgets.

• 2. Projects which have a deficit of $500,000 or greater and the deficit is 10%, or higher than the total project budget will continue to require a separate report to City Council to address the matter.

• 3. Project surpluses which are certain to occur will be considered for use to offset projects with deficits, where appropriate.

• 4. Project surpluses which are certain to occur and not required to offset project deficits will be returned to the original funding source. Where that funding source is tax-levy based, such as Pay as you go and Service Sustainability, those surpluses will be identified and considered for potential use in addressing the unexpected pandemic costs.

Risk Analysis:

There is no risk to confirming the above guidelines as a means to ensure Administration is considering these factors as support and as a general framework when bring forth reports and recommendations for City Council’s consideration during the balance of 2020.

There is a risk that unforeseen circumstances may arise which are not captured in the guidelines presented however may be necessary to bring to City Council at such time. While this is a low risk, should it occur these matters will be brought to City Council, along with suggested amendments to these guidelines.

Financial Matters:

This report outlines a framework and several guidelines to help identify circumstances in which capital projects would be recommended to proceed. There are also guidelines to identify situations in which a project may be put on hold / cancelled and/or be pushed