Sixteen Mile Sports Complex | Officially opened ... - Oakville

• Council, in adopting the capital budget, shalldetermine the sums required for each capitalproject listed in the capital budget. The treasurer/deputy treasurer shall certify that funding for thecapital projects in the capital budget is withinthe town’s updated financial obligation limit inrelation to allowable provincial levels.• All capital budgets and departmental reportsto Council seeking authority for the release offunds and commencement of the capital projector amendments to the capital program must firstbe approved by the treasurer/deputy treasurer toensure accuracy, financing sources and financialimpact, and then reviewed by the CAO beforebeing submitted to Council for approval.• Similar to the operating budget, there are ahierarchy of controls detailing how projectbudgets may be amended.Tangible capital assets• The town has developed asset managementpolicies to determine asset classes, thresholds,useful lives which are being followed tosupport compliance to PSAB 3150 TangibleCapital Assets.• Amortization is done on a monthly basis, andcharged corporately. Departmental budgets arenot affected by amortization, as they are preparedon a cash basis for the calculation of the tax levy.Reconciliation of annual transfers to reserves/reserve funds are compared to amortizationand reported to Council on an annual basis, incompliance with Municipal Act 284/09.• Through the monthly capital project review,there is a linkage between the project and theasset being constructed or purchased. Oncethe asset is in service, the asset is capitalized andthe project closed.• Assets which are contributed to the town throughdevelopment agreements are not budgeted for, butare included within the tangible capital assets aswell as showed as funded from contributed revenue.• Asset inventories are maintained and signed offby department directors quarterly and annually.Debt managementCouncil has adopted a policy that ensures the annualdebt repayment level is significantly below theallowable Provincial Government authorized level of25 per cent of operating revenues. Council’s currentapproved guideline stipulates that debt repaymentsfor tax supported debt are not to exceed 6.25 percent of operating revenues. In addition, total debtrepayments including debt that will be recoveredfrom non-tax sources are not to exceed 12 per cent ofoperating revenues. Finally, development supporteddebt repayments are not to exceed 25 per cent ofthe projected annual average development chargerevenues. The town currently has a relatively low totaldebt burden in comparison to the provincial standard.Town of Oakville 2010 Annual Report | 20