Staff memo.
I have been asked to provide clarity on our processing of the Hydro Dividend, our proposed allocation of any year end surplus and if the Capital Asset Replacement Reserve (formerly called the Hydro Note) is eligible for an allocation.
The dividend from Guelph Hydro ( estimated at $1.5 million) is received as a flow through from GHI through GMHI into City general revenue.
If there is a positive variance at year end on the tax supported operating budget, the Capital Asset Replacement Reserve (former Hydro Note)is a candidate for funding.
In our proposed surplus policy (which is coming forward in February 2014) considers stabilization reserves first, followed by pressing needs (legal, winter control etc) before other considerations such as the Capital Asset Replacement Reserve. Our Tax Rate Stabilization reserve alone is $4-5 Million below targeted levels. Staff