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HomeMy WebLinkAboutFND-005-09g EnergizL~g Ontario REPORT FINANCE DEPARTMENT Meeting: Date: Report #: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MONDAY MARCH 9, 2009 FND-005-09 File Resolution #: ~~/~ aa~ 6~7 By-law #: Subject: FINANCIAL UPDATE AS AT DECEMBER 31, 2008 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-005-09 be received for information. Submitted by: A r Nancy aylor .A., C.A., Director of Fi ance/Treasurer Reviewed b+rsc~ ~~ ~" Franklin Wu, Chief Administrative Officer. NT/LB/hjl REPORT NO.: FND-005-09 PAGE 2 BACKGROUND AND COMMENT: 1.0 The Financial Update report has been designed to focus on overall budget variance reporting. The format and layout of this report is consistent with report FND-029-08 presented previously to Council. 2.0 Fourth 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 December 31, 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 December 31, 2008 total $38,149,040.60 which represents 102.28% of the net operating budget. 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 December 31, 2008. It is important to note that the figures presented in this report do not represent the final year end figures. Year end accruals and adjustments necessary to ensure revenues and expenditures are charged to the appropriate fiscal year will continue to be done to finalize the 2008 year and prepare the Municipal Financial Statements in accordance with Canadian generally accepted accounting principles. These are unaudited year end figures as our audit will not be completed until early summer. 2.3 The Clerks department revenue is currently higher than the budget set for the department. This difference includes a significant increase in the Provincial "Wolf Damage" Grants received by the Municipality of Clarington to compensate for the Livestock Claims paid to residents directly by the Municipality. As mentioned in the third quarter. report, revenues in the fourth quarter from the sale of all types of licences continued to exceed original expectations. 2.4 As identified in the third quarter report, legal fees reported by the Clerks Department continued to be incurred in the fourth quarter increasing the extent to which the account was over expended. These fees relate to significant legal issues that Council has been previously appraised of. 2.5 Included in the Unclassified Administration expenditures are the amounts reported for corporate insurance fees, legal fees, professional fees and tax write offs. These accounts have experienced significant activity in 2008 due to premium rate increases, insurance claim payouts, ongoing legal appeals and an increase application for tax reductions. Before the 2008 year end is finalized, some of these costs may be offset through reserves as per Council policy. REPORT NO.: FND-005-09 PAGE 3 2.6 The Operations Department also experienced an increase in expenditures due to the winter conditions during the fourth quarter. Expenditure accounts directly related to winter maintenance show an over expenditure for 2008 in excess of $1.1 million. This was reported separately to Council in a previous agenda. 2.7 The Planning Services revenue accounts did not reach budget targets originally set early 2008. This can be explained by a significant decrease in the number of applications for plans of subdivisions throughout the year. These have a large dollar impact due to the current economic downturn. This will be monitored throughout 2009 as requested by Council. 2.8 Attachment "B", Continuity of Taxes Receivable for the three months ending December 31, 2008 provides the status of the taxes billed and collected by the Municipality of Clarington during the Fourth quarter of 2008. A total of $908,047 in supplementary3ax bills were issued to property owners in the Municipality during this period. At the end of December, a total of $7,876,823 remains unpaid. In 2007 at this time our balance was $8,003,009. 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. 2.9 Attachment "C", Outstanding Investments as at December 31, 2008 provides the status of the Municipality's general, capital and reserve fund investment holdings at the end of the fourth quarter of 2008. The Municipality at December 31 holds $0 in general fund investments, $6,492,032.62 in capital fund investments, and $42,077,802.48 i,n reserve fund investments to fund future commitments. General fund investments are short term in nature and timed to mature when funds will be required. 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 provided as information to Council. Ongoing reports will be provided quarterly. Attachments: Attachment "A": Summary of Operating and Expenditures and Revenue Attachment °B": C©ntinuity of Taxes Receivable Attachment "C": Investments Outstanding CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169 ATTACHMENT"A" THE MUNICIPALITY OF CLARINGTON SUMMARY OF OPERATING EXPENDITURES & REVENUES TO DECEMBER 31, 2008 ('YSar antl scenwb ana adlassnants an mt yet tompMhy MNcba In Lhasa talsntaa) 2008 EXPENDED TO DEPARTMENT BUDGET DECEMBER 37• SPENT NON-DeoaMrnental: Expenditures (including Ubrary) 3,166,287.00 3,066,316.82 96.84 Revenues/Recovenes (excluding lax) (8,572,781.00) (6,319,432.88) 96.15 Net NOn-Deparhnantal (3.406,474.00) (3,253,115.84) 95.50 ORlee of the Mawr 8. Council: Net Office of the Mayor 8 Counefl 760,107.00 749,181.52 98.56 Office of fhe CAO: Net Offlee of the CAO 410,283.00 424,536.80 103.47 Corporate Services: Ezpenditures 3,502,954.00 3,454,869.81 98.63 Revenues/Recovedes (132,604.00) (202,621.57) 152.80 Net Corporate Services 3,370,350.00 3,252,248.24 96.50 Clerks: Expenditures 1,948,900.00 2,207,483.89 113.27 RevenueslRecovenes (387,750.00) (564,606.78) 145.61 Net Clerks 1,581,150.00 1,842,877.11 105.24 Finance: Unclassi8etl admin 8. Board of Trade 1,755,366.00 2,127,310.86 121.19 Opere0ng ExpeMkures 1,717,740.00 1,621,449.03 94.39 Expenditues 3,473,106.00 3,748,759.89 107.94 RevenuesfRecovenes (1,180,000.00) (1,590,827.90) 137.12 Net Finance 2,313,106.00 2,158,131.99 93.30 EmerDenev SeMces: Expenditures 7,538,993.00 7,580,760.96 100.55 RevenueslRewveries (9,250.00) (11,331.33) 122.50 Net Emergency Services 7,529,743.00 7,569.428.63 100.53 Engineerina: Expenditures 4,297,599.00 4,322,481.95 100.58 RevenueslRecovedes (1,527,875.00) (1,449,323.46) 94.86 Net Engineering 2,769,724.00 2,873,158.49 103.73 Ooention: Fkiet B. Debenture Pmts 1,805,314.00 1,518,638.03 84.12 Operating Ezpendilure5 10,639,781.50 11,821,444.70 177.11 Expenditures 12,445,095.50 13,340,082.73 107.19 RevenueslRecovedes 5375,000.00) (389,417.15) 103.84 Net Opera0orre 12,070,095.50 12,950,685.56 107.30 CommunNV Services: Annual GraMS & Debenture Pmts 3,007,478.00 3.097,170.96 102.98 Operating Expenditures 8,317,880.00 7,668,478.15 92.19 Expenditures 11,325,358.00 10,765,649.11 95.08 RevenueslRecovedes (4,491,857.50) (4,177,482.53) 93.00 Net Community Services 6,833,500.50 8,588,186.58 96.41 Plannino Services: Expendttures 3,686,855.00 3,536,915.14 95.93 RevenueslRetovenes (599,500.00) (343,174.84) 57.24 Net Planning Servie~ 3,087,355.00 3,193,740.50 103.45 TOTAL OPERATING: Expenditures 52,555,537.50 53,197,038.62 101.22 Revenues/Recoveries (15,258,597.50) (15,047,998.02) 98.63 NET OPERATING EXPENDITURES 37,298,940.00 38,149,040.80 102.28 CORPORATION OF THE MUNICIPALITY OF CLARINGTON PART "B" Continuity of Taxes Receivable for the Fourth Quarter of the Year 2008 Sep 30, 2008 DECEMBER DECEMBER BEG. BALANCE INTEREST TAXES PAYMENTS/ 2008 2007 RECEIVABLE ADDED BILLED BALANCE ADJUST.-"" PREPAID TAXES Notei 2.180,357 2,046,000 CURRENT YEAR TAXES 11478,828 803,222 12,282,050 (8,922,570) 3,359,480 3,345,179 PENALTY AND INTEREST 199,329 268,415 467,744 184,051 283,693 271,042 FIRST PRIOR YEAR TAXES 2,385,179 104,625 2,490,004 (362.848) 2,127,156 1,919,007 PENALTY AND INTEREST 273,177 85.415 358,591 115,723 242.869 262,380 SECOND PRIOR YEAR TAXES 869,857 - 869,857 (191,578) 678.279 712,622 PENALTY AND INTEREST 171,826 31,186 203,013 53,793 149,220 169,566 THIRD & PRIOR YEARS TAXES 785,108 - 785,108 (116,825) 668,283 908,337 PENALTY AND INTEREST 382,777 27,804 410,581 42,737 367,844 414,876 OTAL 16,546,081 412,820 908,047 17,866,948 9,990,125 7,876,823 8,003,009 Includes refunds, write-offs, 35TS, etc. NOTE 1 Prepaitl taxes include property lax preauthorized payment program (PAP). CORPORATION OF THE MUNICIPALITY OF CLARINGTON INVESTMENTS OUTSTANDING A3 AT DECEMBER 31, 2008 ATTACHMENT"C" FINANCIAL INVESTMENT INTEREST MATURITY MATURITY INSTITUTION COST RATE VALUE DATE GENERAL FUND TOTAL GENERAL FUN 0.00 CAPITAL FUND Banker Acceptance BMO 1,437,019.20 2.05% 1,440,000.00 7Jan-2009 BankerACCeptance BMO 1,898,195.00 1.58% 1,900,000.00 7Jan-2009 Banker Acceptance BMO 1,198,128.00 1.50°k 1,200,000.00 30Jan-2009 BankerACceptance TD 1,958,690.42 1.56% 1,966,300.00 17-Mar-2009 TOTAL CAPITAL FUND 6,492,032.62 RESERVE FUND Banker Acceptance HBSC 3,097,754.96 3.64% 3,196,000.00 5-Jan-2009 Banker Acceptance/CIBC TD 1,095,743.00 1.56% 1,100,000.00 17-Mar-2009 Banker Acceptance/CIBC TD 1,494,195.00 1.56°k 1,500,000.00 17-Mar-2009 GIC-Laurentian Bank RBC 372,440.00 4.40°k 461,912.00 28-May-2009 GIC-Royal Bank RBC 595,239.00 3.80% 617,858.08 23-Jun-2009 Bond-Canada RBC 4,180,000.00 4.10% 4,351,380.00 30-Jun-2009 Bond-Canada RBC 3,796,000.00 4.05% 3,949,738.00 29-Jul-2009 GIC-Royal Bank RBC 664,993.00 4.25% 753,434.00 29-Aug-2009 Bond-Canada RBC 739,938.86 3.55% 869,800.00 1-Oct-2009 B/A-BMO RBC 1,787,409.00 2.70% 1,835,669.04 2-Dec-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-Od-2010 GIC-National Bank RBC ' 1,500,000.00 4.10% 1,833,770.00 6-Dec-2010 GIC-National Bank RBC 1,681,851.79 4.35% 2,080,894.41 6-Mar-2011 GIC-BMO 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 4.20% 1,244,090.00 2-Dec-2011 GIC-Royal Bank RBC 2,000,000.00 4.05% 2,439,161.00 16-Mar-2012 B/A-TD RBC 1,471,061.00 4.80% 1,859,675.00 30-Oct-2012 B/A-Royal Bank RBC 1,503,357.00 4.80% 1,900,502.92 8-Jan-2013 GIC-BNS RBC 1,546,695.00 4.50% 1,927,463.38 12-Feb-2013 GIC-BNS RBC 599,161.00 4.35% 741,320.00 4-Mar-2013 GIC TD 1,009,028.00 4.45°k 1,254,427.00 25-Mar-2013 GIC TD 257,495.00 4.51% 321,039.00 13-May-2013 GIC-Royal Bank RBC 946,770.00 4.40% 1,174,213.00 30-Sep-2013 Bond-Ontario RBC 574,200.00 4.30% 598,890.60 14OCt-2013 GIC-BNS RBC 1,338,742.00 4.15% 1,640,564.30 16-Deo-2013 TOTAL RESERVE FUND 42,077,802.48 TOTAL INVESTMENTS 48,569,835.10 ' Investment interest paid on a monthly/semi-annual/annual basis