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RFD- 4215 Delegations   Item #   6. a.    
Regular Council Meeting Agenda Council Delegations  
Meeting Date: 02/22/2021  
Title:    TransAlta Tri Leisure Centre – 2020 Deficit Budget - Wolanski
Department: Community & Protective Services  
Strategic Vision Element: Where People Choose to Live - A dynamic city with an exceptional quality of life Related Goal: High quality leisure, recreational, commercial and social infrastructure and amenities as well as policies that meet the interests and needs of the greater community are in place and conveniently accessible.

Request for Decision Summary
TransAlta Tri Leisure Centre (TLC) Board Members and staff representatives are presenting a report on the TLC 2020 Deficit Budget.

Proposed Motion
That the TransAlta Tri Leisure Centre be authorized to utilize the Operations Reserve to cover the 2020 operating deficit.
In addition to the report provided by the TLC, Spruce Grove administration has reviewed the proposed approach to dealing with the 2020 deficit.  The respective General Manager's of each municipality have met and are supportive of the recommendation at this time.

There are some questions around the resulting implications of service level decisions, especially from a financial perspective, to the municipalities that will be discussed in 2021 with the TLC.  Similarly, projections on the financial shortfall changed quite rapidly and significantly which left very little time for the municipalities to consider or influence changes.  Again, there will be discussion in 2021 to work through processes and information to avoid larger fluctuations in the future.  
As outlined in the TLC report, the Board considered a few options and the report lists the pros and cons of each and it is important to identify what those considerations were.  Ultimately, the Board recommended using the operations reserve to fund the deficit and the GM's of each municipality is supportive of this approach.  It was further vetted through the City's Emergency Management Agency, Corporate Leadership Team, and Finance areas. 

Fiscal Impact
Financial Implications:
The final deficit at the end of 2020 was $531,774. The TLC Board of Directors has approved the use of reserve funds to offset the deficit and has directed Administration to request approval from the three Municipal Councils for the same.
At the end of 2020, the TLC had the following reserve funds:
Operations Reserve: $601,507
Capital Reserve: $907,642 ($250,000 committed to MCCAC Lighting Upgrade Project)
As per Article 7.5 of the Memorandum of Agreement, the Operations Reserve is “to be used to fund future deficits of the Corporation” while the Capital Reserve is intended to offset future capital item costs. The Operations Reserve is a very fluid amount as it includes deprecation and capital purchases in any given year. This fluctuates significantly from year to year and has ranged over the past five years from as low as $92,578 in 2017, to as high as $601,507 in 2019.
TLC - 2020 Deficit Report
TLC - 2020 Deficit Presentation

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