HomeMy WebLinkAboutFND-029-08~Iaringlr~~
Cnergizing Ontario
REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: MONDAY NOVEMBER 17t", 2008 Resolution #: -~ ~'~g
Report #: FND-029-08 File #: By-law #:
Subject: FINANCIAL UPDATE AS AT SEPTEMBER 30, 2008
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-029-08 be received for information.
Submitted by:
Reviewed ~~ "~J',L
Franklin Wu,
Chief Administrative Officer.
NT/LB/hjl
REPORT NO.: FND-029-08
PAGE 2
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
has been changed for the September report to reallocate the budgeted grants
paid to support the Library's operations. These will now be reported as part of
the Non-departmental expenditures.
2,0 Third Quarter of 2008 Results
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 September 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 September 30, 2008 total $27,558,425.56
which represents 73.89°/a 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 69%.
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
September 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 and Library operating grants are paid out by the
third quarter.
2.4 The Clerks department revenue is currently higher than the budget set for the
department. This difference is mainly caused by an increase in service requests
for all types of licensing. It should be noted that animal licences now have a
lifetime option that.. has been quite popular. They are issued once and remain in
effect for life, so this increase will not be consistent in future years.
2.5 Included in the expenditures reported by the Clerks department is an over
expenditure for legal fees paid in excess of the amount originally budgeted.
These fees relate to significant legal issues that Council has been previously
appraised of.
REPORT NO.: FND-029-08
PAGE 3
2.6 Included in the expenditures reported for Unclassified Administration is corporate
Insurance fees. The full annual insurance premium for the Municipality has been
charged to this account as well as the cost of the deductible payments for settling
several old claims during the current reporting period.
2.7 Included in the expenditures reported by the Engineering department is a
noticeable increase in the cost associated with the additional building inspections
made necessary due to the excessive rainfall during the third quarter.
2.8 The Operations department also experiences an increase in expenditures and
decrease in Sport Field Rental revenue due to the excessive rainfall during the
third quarter. Staff time, equipment and supplies were required to remove fallen
trees, replace culverts and repair roadways washed away during the storms.
2.9 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.
2.10 Attachment "B", Continuity of Taxes Receivable for the three month ending
September 30, 2008 provides the status of the taxes billed and collected by the
Municipality of Clarington during the Third quarter of 2008. A total of
$35,958,794 in final tax bills were issued to property owners in the Municipality
during this period. At the end of September, a total of $16,546,081 remains
unpaid. In 2007 at this time our balance was $16,582,629. Cash collections
have increased in recent months along with collection efforts. These efforts will
continue on an ongoing basis in an effort to control the growth of our taxes
receivable.
2.11 Attachment "C", Outstanding Investments as at September 30, 2008 provides the
status of the Municipality's general, capital and reserve fund investment holdings
at the end of the third quarter of 2008. The Municipality at September 30 holds
$0 in general fund, $4,186,863.36 in capital fund investments, and
$41,913,312.68 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 second instalment of the final tax billing due and the
school board levy requirement due at the end of September totalling
$18,692,511, no funds remained in the general fund investment account. In
2007 at this time $4,470,895 was held in the general fund. These funds
represented the balance of debenture proceeds invested over the short term to
meet contractual requirements for the Newcastle facility. No debenture proceeds
remained unassigned at September 30, 2008. Investments held in the
Municipality's portfglio 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.
REPORT NO.: FND-029-08
PAGE 4
CONCLUSION:
3.0 The report is provided as information to Council. Ongoing reports will be
provided quarterly.
Attachments:
Attachment "A": Summary of Operating and Expenditures and Revenue
Attachment "B": Continuity of Taxes Receivable
Attachment "C": Investments Outstanding
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOW MANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169
ATTACHMENT"A"
THE MUNICIPALITY OF CLARINGTON
SUMMARY OF OPERATING EXPENDITURES & REVENUES
TO SEPTEMBER 30, 2008
2008 EXPENDED TO %
DEPARTMENT BUDGET SEPTEMBER 30 SPENT
NON-Departmental:
Expenditures (including Library) 3,166,287.00 3,063,910.42 96.77
RevenueslRecoveries (excluding tax) (6,572,761.00) (5,814,375.06) 88.46
Net Non-Departmental (3,406,474.00) (2,750,464.64) 80.74
Office of the Mayor 8: Council:
Net Office of the Mayor & Council 760,107.00 555,028.30 73.02
Office of the CAO:
Net Office of the CAO 410,283.00 299,784.94 73.07
Corporate Services:
Expenditures 3,502,954.00 2,563,741.83 73.19
RevenueslRecoveries (132,604.00) (162,525.76) 122.56
Net Corporate Services 3,370,350.00 2,401,216.07 71.25
Clerks:
Expenditures 1,948,900.00 1,554,632.95 79.77
Revenues/Recoveries (387,750.00) (402,271.57) 103.75
Net Clerks 1,561,150.00 1,152,361.38 73.81
Finance:
Unclassified atlmin & Boartl of Trade 1,978,343.00 1,884,612.42 95.26
Operating Expenditures 1,717,740.00 1,178,862.66 68.63
Expenditures 3,696,083.00 3,063,475.08 82.88
RevenueslRecoveries (1,160,000.00) (1,029,906.71) 88.79
Net Finance 2,536,083.00 2,033,568.37 80.19
Emeraencv Services:
Expenditures 7,316,016.00 5,380,406.59 73.54
RevenueslRecovedes (9,250.00) (9,259.33) 100.10
Net Emergency Services 7,306,766.00 5,371,147.26 73.51
Engineering:
Expenditures 4,297,599.00 3,493,751.75 81.30
RevenueslRecoveres 57,527,875.00) (1,181,726.89) 77.34
Net Engineering 2,769,724.00 2,312,024.86 83.47
Operation:
Fleet& Debenture Pmts 1,647,314.00 1,348,057.44 81.83
Operating Expenditures 10,797,781.50 7,903,172.24 73.19
Ezpenditure5 12,445,095.50 9,251,229.68 74.34
Revenues/Recoveries (375,000.00) (330,568.88) 88.15
Net Operations 12,070,095.50 8,920,660.80 73.91
Community Services:
Annual Grants & Debenture Pmts 3,007,478.00 2,653,932.03 88.24
Operating Expenditures 8,317,880.00 5,179,039.19 62.26
Expenditures 11,325,358.00 7,832,971.22 69.16
RevenueslRecoveries (4,491,857.50) (2,995,374.34) 66.68
Net Community Services 6,833,800.50 4,837,596.88 70.79
Planning Services:
Expenditures 3,686,855.00 2,629,597.40 71.32
RevenueslRecoveries (599,500.00) (204,096.06) 34.04
Net Planning Services 3,087,355.00 2,425,501.34 78.56
TOTAL OPERATING:
Expenditures 52,555,537.50 39,688,530.16 75.52
Revenues/Recoveries (15,256,597.50) (12,130,104.60) 79.51
NET OPERATING EXPENDITURES 37,298,940.00 27,558,425.56 73.89
ATTACHMENT"B'
ORPORATION OF THE MUNICIPALITY OF CLARINGTON
Continuity of Tazes Receivable
or the Third Quarter of fhe Year 2008
June 30, 2008 SEPTEMBER SEPTEMBER
BEGINNING BALANCE INTEREST TAXES PAYMENTS! 2008 2007
RECEIVABLE ADDED BILLED BALANCE ADJUST."'
CURRENT YEAR
TAXES 6,778,235 35,825,284 42,603,519 (31,124,691) 11,476,828 11,363,432
PENALTY AND INTEREST 97 046 227 866 324 912 125 582 199 329 191 875
FIRST PRIOR YEAR
TAXES 2,935,245 125,908 3,061,153 (675,974) 2,385,179 2,319,151
PENALTY AND INTEREST 267 739 102 868 370 607 97 431 273 177 274 325
SECOND PRIOR YEAR
TAXES 1,120,107 7,602 1,127,709 (257,852) 869,857 861,513
PENALTY AND INTEREST 183,843 38 655 222 498 50 671 171 826 178 509
HIRD 8 PRIOR YEARS
TAXES 976,345 976,345 (191,237) 785,108 979,638
PENALTY AND INTEREST 424 025 33 748 457 773 74 996 382 777 414 166
OTAL 12 782 584 403 137 35 958 794 49 144 515 32 598 434 16 546 081 16 582 629
Includes refunds, writeoffs, 357's, etc.
NOTE 1: 2008 Interim Instalment months: February and Apol
2008 Final Instalment months: June and September
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
INVESTMENTS OUTSTANDING
AS AT SEPTEMBER 30, 2008
ATTACNMENT"C"
FINANCIAL INVESTMENT INTEREST MATURITY MATURITY
INSTITUTION COST RATE VALUE DATE
GENERAL FUND
TOTAL GENERAL FUN 0.00
CAPITAL FUND
BankerACCeptance BMO 1,596,224.00 3.20% 1,600,000.00 20-Oct-2008
Banker Acceptance BMO 677,735.60 3.21% 680,000.00 31-Oct-2008
Banker Acceptance BMO 1,912,903.76 3.20% 1,928,000.00 1-Oct-2008
TOTAL CAPITAL FUND 4,186,863.36
RESERVE FUND
Banker Acceptance BMO 992,170.00 3.20% 1,000,000.00 1-Oct-2008
Bond-Ontario RBC 550,000.00 4.40% 574,200.00 14-Oct-2008
Bond-Quebec RBC 1,379,343.53 4.65°k 1,787,409.00 1-Deo-2008
Bond-CIBC RBC 2,061,000.00 4.50% 2,153,745.00 3-Deo-2008
Bond-Canada RBC 1,143,285.67 3.80% 1,338,742.00 15-Deo-2008
Banker Acceptance HBSC 3,097,754.96 3.64°k 3,196,000.00 5-Jan-2009
GIC-Laurentian Bank RBC 372,440.00 4.40% 461,912.00 28-May-2009
GIC-Royal Bank RBC 595,239.00 3.80°k 617,858.08 23-Jun-2009
Bond-Canada RBC * 4,180,000.00 4.10°k 4,351,380.00 30-Jun-2009
Bond-Canada RBC 3,796,000.00 4.05°h 3,949,738.00 29-Jul-2009
GIC-Royal Bank RBC 664,993.00 4.25°h 753,434.00 29-Aug-2009
Bond-Canada RBC 739,938.86 3.55°k 869,800.00 1-Oct-2009
Bond-Ontario RBC 733,772.63 3.85°~ 900,445.00 2-Jun-2010
Bond-Canada RBC 5,094,062.47 4.10% 6,058,590.00 1-Oct-2010
GIGNational Bank RBC 1,500,000.00 4.10% 1,833,770.00 6-Deo-2010
GIGNational Bank RBC 1,681,851.79 4.35% 2,080,894.41 6-Mar-2011
GIGBMO RBC 2,221,742.00 4.30% 2,742,301.29 18-Sep-2011
Bond-Quebec RBC 776,152.23 4.35% 986,467.00 1-Dec-2011
Bond-Ontario RBC 999,999.54 420% 1,244,090.00 2-Dec-2011
GIGROyaI Bank RBC 2,000,000.00 4.05% 2,439,161.00 16-Mar-2012
8!A-TD RBC 1,471,061.00 4.80% 1,859,675.00 30-Oct-2012
8!A-Royal Bank RBC 1,503,357.00 4.80% 1,900,502.92 8-Jan-2013
GIGBNS RBC 1,546,695.00 4.50% 1,927,463.38 t2-Feb-2013
GIC-BNS RBC 599,161.00 4.35% 741,320.00 4-Mar-2013
GIC TD 1,009,028.00 4.45% 1,254,427.00 25-Mar-2013
GIC TD 257,495.00 4.51°k 321,039.00 13-May-2013
GIC-Royal Bank RBC 946,770.00 4.40% 1,174,213.00 30-Sep-2013
TOTAL RESERVE FUND 41,913,312.68
TOTAL INVESTMENTS 46,100,176.04
" Investment interest paid on a monthlylsemi-annual/annual basis