Calgary Ward 4

Alderman Hawkesworth:

WHEREAS The turbulence in world financial markets, coupled with a drop in energy prices has raised concerns that a world economic slow-down will have a significant impact on the Calgary economy with consequences for The City’s business plans and operating and capital budgets; and

WHEREAS Citizens have expressed a concern that The City’s three-year budget and business plans may not have enough flexibility to respond quickly and appropriately to changing circumstances; and

WHEREAS Administration is closely monitoring emerging global, national, provincial and local trends to ensure that City budgets and business plans are implemented prudently and responsibly;

NOW THEREFORE BE IT RESOLVED that the City Manager bring forward a Financial Indicators and Contingency Planning Report to an In-Camera meeting of the Personnel and Accountability Committee no later than 2009 February 3, such Report to include a description of key external and internal leading indicators and required contingencies that would allow The City of Calgary to properly respond to changing demands on services or potential

Market Volatility Planning

In response to my November 2008 Notice of Motion City Administration has initiated the following update:

*       To date, The City has not been materially affected by the downturn.  Both our revenues and expenditures are where they were projected to be in the approved budget, and we are managing within that budget.

*       Nonetheless, we expect that, depending on the severity of the continuing economic trends we see, and the length of the downward trends, The City is bound to be affected.

*       We’ll continue to watch the situation closely, curtail any discretionary spending and keep our options in place for quick response should that be required.

Our greatest source of funding for capital projects – roads, recreation centres, etc. – come from other levels of government.  We don’t yet have sufficient details on the federal government’s announced infrastructure funding, and the provincial government has yet to release its 2009-2010  budget.  So we’re being precautionary.  Senior management is reviewing all of the department capital projects and prioritizing the ones for which we know we have full funding available now.

Council and the Administration will continue to monitor the economic situation, and will meet regularly to keep our options up-to-date, and exercise them if and when needed.