Financing of Toronto's waste disposal Michigan contracts|
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Today, the City of Toronto Chief Financial Officer and Treasurer, Joseph
Pennachetti, clarified the financing of the City's waste disposal (Michigan)
contracts to the Budget Advisory Committee.
The key clarification is that the 2003 budget related to the capital items of
$18.791 million was not based on issuing debt to finance these contracts. The
financing was based on current year's tax financing Capital from Current (CFC)
within the 2003 Capital and Corporate Financing Program. CFC is a financing
mechanism used in every annual City budget to fund various capital related
items from the annual property tax revenues.
"The financing mechanism is consistent with accounting practices and
provincially legislated financing guidelines," said Pennachetti. "The City is
not incurring any new debt for the disposal of waste to Michigan."
In keeping with City financial strategic directions, the objective is to
minimize debt and fund this program on a pay-as-you-go basis.
"All the costs for disposing of the City's waste in Michigan are being funded
on a pay-as-you-go basis," said Budget Chair, David Shiner. "We are still
waiting to hear from the province on funding assistance related to the $42
million in additional costs caused by the provincial government's decision to
force an early closing of the Keele Valley landfill."