HomeMy WebLinkAboutFND-016-08
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REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MONDAY SEPTEMBER 8th, 2008 Resolution #:6 {JfPNo--Q'6
Date:
Report #: FND-016-08
File#:
By-law #:
Subject:
FINANCIAL UPDATE AS AT JUNE 30, 2008
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-016-08 be received for information.
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Reviewed by: 0 ~---'~
Franklin Wu,
Chief Administrative Officer.
NT/hjl
REPORT NO.: FND-016-08
PAGE 2
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BACKGROUND AND COMMENT:
1.0 As mentioned in FND-013-08, the Financial Update report has been designed at
the request of Council to focus on overall budget variance reporting. The format
is currently a work in process and will continue to be further enhanced throughout
2008.
2.0 Second Quarter of 2008 Results
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2.1 Attachment "A", the Summary of Operating Expenditures and Revenue statement
compares the Municipality's budget to actual posted expenditures and revenue
as of June 30, 2008. The statement reflects the Municipality's operating budget
only and excludes year to date expenditures for the consolidated hall/arena
boards. Net expenditures to June 30, 2008 total $20,907,088.87 which
represents 56.05% of the net operating budget. This includes annual grants and
debentures that occur at the beginning of the year that affects the results in
several departments from a timing perspective. If this was prorated over the
year, the percent of the operating budget expended drops to 48%.
2.2 Attachment "A" is intended to provide an indication of the status of the
Municipality's operating accounts compared to the approved budget as at June
30, 2008. However, many departments are affected by high levels of activity
during specific times of the year. For example, some activities are seasonal in
nature, such as ice rentals and winter control which result in a fluctuation of the
timing of recognition of revenues and expenses. Due to these timing differences,
this statement cannot be used in isolation.
2.3 Included in the non-departmental revenues is $4,434,586.00 in budgeted
transfers from the reserve fund. These transfers are done annually, traditionally
in the second quarter. This affects the total non-departmental revenue earned to
date when compared to budget. Likewise in the non-departmental expenditures,
the full value of the BIA levies is paid out by the second quarter.
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2.4 Included in the revenue reported by the Corporate Services division, are funds
collected for the Mayor's Golf Classic to benefit the Bowmanville Memorial
Hospital Foundation. The net proceeds will be remitted by the next quarter's
reporting.
2.5 The Planning Services revenue accounts have not yet reached the mid year
percentage. This can be explained by a significant decrease in the number of
applications for plans of subdivisions. These have a large dollar impact due to
the current economic downturn.
2.6 Attachment "B", Continuity of Taxes Receivable for the three month ending June
30, 2008 provides the status of the taxes billed and collected by the Municipality
REPORT NO., 'N"..i.ta PAGE'
of Clarington durins the second quarter of 2008. A total of $25,094,688 in interim
tax bills and $28,1~3,859 in final tax bills were issued to property owners in the
Municipality during this period. At the end of June, a total of $12,782,584
remains unpaid. 11!12007 at this time our balance was $11,453,264 or $1 ,329,320
lower. This growth in the balance of taxes receivable relates to several factors
including additions to the roll (non-tax) for other levels of government as well as
property standards etc, and economic conditions. Cash collections have
increased in recen~ months along with collection efforts.
2.7 Attachment "C", Outstanding Investments as at June 30, 2008 provides the
status of the Muni<;:ipality's general and reserve fund investment holdings at the
end of the first quarter of 2008. The Municipality at June 30 holds $0 in general
fund and $43,552,427.68 in reserve fund investments to fund future
commitments. General fund investments are timed to mature when funds will be
required. With the Region's share of the first instalment of the firnal tax billing due
and the school board levy requirement due at the end of June totalling
$23,606,150, no fllnds remained in the general fund investment l3ccount. In
2007 at this time $14,872,240 was held in the general fund. These funds
represented the b$lance of debenture proceeds invested over the short term to
meet contractual rflquirements for the Newcastle facility. No debenture proceeds
remained unassigrned at June 30, 2008. Investments held in the Municipality's
portfolio are reviewed on an ongoing basis to ensure they meet the requirement
of Section 418 of the Ontario Municipal Act and the Municipality's investment
policy.
CONCLUSION:
3.0 The report is proviped as information to Council. Further reports will be provided
throughout 2008 as the financial information is updated and additional refinement
of this report takes place.
Attachments:
Attachment "A":
Attachment "8":
Attachment "C":
Summary of Operating and Expenditures and Revenue
Con~inuity of Taxes Receivable
Investments Outstanding
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CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3~79 F (905)623-4169
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ATTACHMENT "A"
THE MUNICIPALITY OF CLARINGTON
SUMMARY OF OPERATING EXPENDITURES & REVENUES
TO JUNE 30. 2008
2008 EXPENDED %
DEPARTMENT BUDGET TO JUNE 30 SPENT
NON-DeDartmental:
Expenditures 192,241.00 165,000.00 85.83
Revenues/Recoveries (excluding tax) (6,572,761.00) (4.821,974.50) 73.36
Net Non-Departmental (6,380,520.00) (4,656,974.50) 72.99
Office of the Mavor & Council:
Net OffIce of the Mayor & Council 760,107.00 354,490,44 46.64
Office of tho CAO:
Net Office of the CAO 410,283,00 201,262.31 49.05
Como rate Services:
Expenditures 3,502,954,00 1,735,797.10 49,55
Revenues/Recoveries (132,604.00) (128,636.13) 97,01
Net Corporate Services 3,370,350.00 1,607,160.97 47,69
Clerks:
Expenditures 1,948,900.00 1,021,391 .89 52.41
Revenues/Recoveries (387,750.00) (237,798,95) 61,33
Net Clerks 1,561,150.00 783,592,94 50.19
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Unclassified admin & Board of Trade 1,978,343.00 1,284,643.43 64.94
Operating Expenditures 1,717,740.00 798,800.09 46.50
Expenditures 3,696,083.00 2,083,443,52 56.37
Revenues/Recoveries (1,160,000,00) (731,970.41) 63.10
Net Finance 2,536,083.00 1,351,473.11 53.29
Emeraencv Services:
Expenditures 7,316,016.00 3,808,168.88 52.05
RevenuesJRecoveries (9,250.00) (5,376.42) 58.12
Net Emergency Services 7,306,766.00 3,802,792.46 52.04
Enaineerina:
Expenditures 4,297,599.00 2,886,986.51 67.18
Revenues/Recoveries (1,527,875.00) (983,358,58) 64.36
Net Engineering 2,769,724.00 1,903,627.93 68,73
ODeration:
Fleet & Debenture Pmts 1,647,314.00 1,273,117,00 77.28
Operating Expenditures 10,797,781,50 5,585,143.93 51.72
Expend~ures 12,445,095.50 6,858,260,93 55.11
Revenues/Recoveries (375,000,00) (66,025.03) 17.61
Net Operations 12,070,095,50 6,792,235.90 56.27
Community Services:
Annual Grants & Debenture Pmts 5,981,524,00 5,522,769.79 92.33
Operating Expenditures 8,317,880.00 3,472,829.78 41.75
Expenditures 14,299,404.00 8,995,599,57 62.91
Revenues/Recoveries (4,491,857,50) (2,125,902.76) 47.33
Net Community Services 9,807,546.50 6,869,696.81 70.05
Plannina Services:
Expenditures 3,686,855.00 2,052,630.98 55.67
Revenues/Recoveries (599,500.00) (154,900,48) 25.84
Net Planning Services 3,087,355.00 1,897,730,50 61,47
TOTAL OPERATING:
Expenditures 52,555,537,50 30,163,032,13 57.39
Revenues/Recoveries (15,256,597,50) (9,255,943.26) 60.67
NET OPERATING EXPENDITURES 37,298,940,00 20,907,088.87 56.05
ATTACHMENT "B"
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
Continuity of Taxes Receivable
or the Second Quarter of the Year 2008
March 31, 2008 JUNE JUNE
BEGINNING BALANCE INTEREST TAXES PAYMENTS! 2008 2007
RECEIVABLE ADDED BILLED BALANCE ADJUST....
PREPAID TAXES
CURRENT YEAR
TAXES (2,898,223) 53,218,547 50,320,324 (43,542,089) 6,778,235 6,065,537
PENALTY AND INTEREST 27 282 161068 188351 . '91305 97 046 86 408
IRST PRIOR YEAR
TAXES 3,752,359 3,752,359 ~~17,113) 2,935,245 2,491,374
PENAL TV AND INTEREST 283 568 129 808 413375 145636 267 739 249471
SECOND PRIOR YEAR
TAXES 1,489,234 1,489,234 (369,127) 1,120,107 969,688
PENAL TV AND INTEREST 239411 50,409 289 820 ;105977 183843 170303
HIRD & PRIOR YEARS
TAXES 1,408,028 1,408,028 ~431,684) 976,345 1,023,044
PENAL TV AND INTEREST 568132 45,650 613 783 189 757 424 025 397 439
OTAL 4869791 386 935 53218547 58475,274 '45692689 12 782 584 11 453 264
.. Includes refunds, write-offs, 357'5, etc.
INOTE 1: 2008 Interim Instalment months: February and April
2008 Final Instalment months: June and September for non-capped classes
ATTACHMENT "C"
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
INVESTMENTS OUTSTANDING
AS AT JUNE 30, 2008
I I FINANCIAL INVESTMENT INTEREST MATURITY MATURITYII
INSTITUTION COST RATE VALUE DATE
GENERAL FUND
TOTAL GENERAL FUND 0.00
RESERVE FUND RBC * 4,180,000.00 4.05% 4,180,000.00 30-Jun-2008
BMO 2,672,055.00 3.44% 2,700,000.00 15-Jul-2008
RBC 3,796,000.00 4.05% 3,796,000.00 29-Jul-2008
RBC * 906,000.00 4.50% 906,000.00 29-Sep-2008
RBC 550,000.00 4.40% 574,200.00 14-0ct-2008
RBC 1,379,343.53 4.65% 1 ,787,409.00 1-Dec-2008
RBC 2,061,000.00 4.50% 2,153,745.00 3-Dec-2008
RBC 1,143,285.67 3.80% 1,338,742.00 15-Dec-2008
HBSC 3,097,754.96 3.64% 3,196,000.00 5-Jan-2009
RBC 372,440.00 4.40% 461,912.00 28-May-2009
RBC 595,239.00 3.80% 617,858.08 23-Jun-2009
RBC 664,993.00 4.25% 753,434.00 29-Aug-2009
RBC 739,938.86 3.55% 869,800.00 1-0ct-2009
RBC 733,772.63 3.85% 900,445.00 2-Jun-2010
RBC 5,094,062.47 4.10% 6,058,590.00 1-0ct-2010
RBC * 1,500,000.00 4.10% 1,500,000.00 6-Dec-2010
RBC 1,681,851.79 4.35% 2,080,894.41 6-Mar-2011
RBC 2,221,742.00 4.30% 2,742,301.29 18-Sep-2011
RBC 776,152.23 4.35% 986,467.00 1-Dec-2011
RBC 999,999.54 4.20% 1,244,090.00 2-Dec-2011
RBC 2,000,000.00 4.05% 2,439,161.00 16-Mar-2012
RBC 1,471,061.00 4.80% 1,859,675.00 30-0ct-2012
RBC 1,503,357.00 4.80% 1,900,502.92 8-Jan-2013
BNS 1,546,695.00 4.50% 1,927,463.38 12-Feb-2013
BNS 599,161.00 4.35% 741,320.00 4-Mar-2013
TD 1,009,028.00 4.45% 1,254,427.00 25-Mar-2013
TD 257,495.00 4.51% 321,039.00 13-May-2013
TOTAL RESERVE FUND 43,552,427.68
TOTAL INVESTMENTS 43,552,427.68
* Investment interest paid on a monthly/semi-annual/annual basis