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Energizing Ontario
REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: Monday September 14~', 2009 Resolution #: OFl -51 - ~~
Report #: FND-021-09 File #: By-law #:
Subject: FINANCIAL UPDATE AS AT JUNE 30T", 2009
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-021-09 be received for information.
Submitted by:
Reviewed b
N cy Ta or, B. ., C.A., Franklin Wu,
Director of'FinancelTreasurer Chief Administrative Officer.
NTILB/hjl
REPORT NO.: FND-021-09
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-014-09 presented previously to Council. Due to timing, the 2009 Budget
column has not yet been amended to reflect changes approved by Council on
August 31, 2009 through report CAO-004-09.
2.0 Second Quarter of 2009 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 June 30, 2009. 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, 2009 total $21,921,904.79 which
represents 56.50% of the net operating budget. This includes annual grants and
debentures that occur at the beginning of the year. If this was prorated over the
year, the percent of the operating budget expended drops to 51.11 %.
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, 2009. 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 Engineering revenues and Planning revenues are below target as discussed in
FND-019-09 and FND-020-09, included in this committee agenda.
2.4 Included in the non-departmental revenue is $4,976,011 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
majority of funds are paid out by the second quarter to cover BIA levies, along
with the approved operating grants for the Clarington Library, Clarington
Museums and Archives and the Visual Arts Centre.
2.5 Attachment "B", Continuity of Taxes Receivable for the three months ending June
30, 2009 provides the status of the taxes billed and collected by the Municipality
of Clarington during the second quarter of 2009. A total of $29,064,030 in interim
tax bills and $26,856,249 in final bills were issued to property owners in the
Municipality during this period. At the end of June, a total of $14,705,011
remains unpaid. However, currently on hand are prepaid taxes through the pre-
authorized payment system and prepaid taxes for the June 2009 instalment of
$407,210. The net balance of $14,297,801 is $1,515,216 higher than the prior
REPORT NO.: FND-021-09
PAGE 3
year at this time. This balance will continue to be closely monitored throughout
the balance of 2009. Generally this is the high point of the year because three
installments have been billed. From this point forward there is a steady decline
in the arrears balance.
2:5 Attachment "C", Outstanding Investments as at June 30, 2009 provides the
status of the Municipality's general, capital and reserve fund investment holdings
at the end of the second quarter of 2009. The Municipality at June 30 holds $0 in
general fund investments, $0 in capital fund investments, and $35,527,337.15 in
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. Currently, our preferred interest rate
through our municipal banking contract on the Municipality's main bank account
exceeds the short term money market rates and therefore is currently the primary
vehicle for short term cash reserves so would not be reflected on this statement.
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, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169
ATTACHMENT"A"
THE MUNICIPALITY OF CLARINGTON
SUMMARY OF OPERATING EXPENDITURES 8 REVENUES
TO JUNE 30, 2009
2009 EXPENDED °~
DEPARTMENT BUDGET TO JUNE 30 SPENT
NON-Departmental:
Expenditures (including Library) 3,305,410.00 3,238,582.80 97.98
Revenues/Recoveries (exGuding tax) (7,233,203.00) (5,615,654.85) 77.64
Net Non-Departmental (3,927,793.00) (2,377,072.05) 60.52
Office of the Mayor 8 Council:
Net Office of the Mayor & Council 783,358.00 430,014.88 54.89
Office of the CAO:
Net Office of the CAO 419,608.00 224,822.04 53.58
Corporate Services:
Expenditures 3,646,618.00 1,791,093.56 49.12
Revenues/Recoveries (161,500.00) (105,058.09) 65.05
Net Corporate Services 3,485,118.00 1,686,035.47 48.38
Clerks:
Expenditures 2,218,827.00 1,118,371.81 50.40
Revenues/Recoveries (437,100.00) (267,483.96) 61.20
Net Clerks 1,781,727.00 850,887.85 47.76
Finance:
Unclassified admin & Board of Trade 2,322,451.00 896,195.89 38.59
Operating Expenditures 1,748,892.00 845,789.24 48.36
Expenditures 4,071,343.00 1,741,985.13 42.79
Revenues/Recoveries (1,172,000.00) (788,408.97) 67.27
Net Finance 2,899,343.00 953,576.16 32.89
Emergency Services:
Expenditures 7,467,269.00 3,853,173.25 51.60
Revenues/Recoveries (9,250.00) (19,006.42) 205.47
Net Emergency Services 7,458,019.00 3,834,166.83 51.41
Engineering:
Expenditures 4,185,070.00 2,767,755.30 66.13
Revenues/Recoveries (1,452,450.00) (260,119.04) 17.91
Net Engineering 2,732,620.00 2,507,636.26 91.77
Operation•
Fleet & Debenture Pmts 1,752,573.00 1,301,730.49 74.28
Operating Expenditures 11,046,631.00 5,886,729.07 53.29
Expenditures 12,799,204.00 7,188,459.56 56.16
Revenues/Recoveries (460,000.00) (128,374.19) 27.91
Net Operations 12,339,204.00 7,060,085.37 57.22
Community Services:
Annual Grants & Debenture Pmts 3,230,579.00 2,736,929.19 84.72
Operating Expenditures 8,751,562.00 3,843,958.10 43.92
Expenditures 11,982,141.00 6,580,887.29 54.92
Revenues/Recoveries (4,702,173.00) (2,187,411.79) 46.52
Net Community Services 7,279,968.00 4,393,475.50 60.35
Planning Services:
Expenditures 3,976,550.00 2,456,909.85 61.78
Revenues/Recoveries (427,500.00) (98,633.37) 23.07
Net Planning Services 3,549,050.00 2,358,276.48 66.45
TOTAL OPERATING:
Expenditures 54,855,398.00 31,392,055.47 57.23
Revenues/Recoveries (16,055,176.00) (9,470,150.68) 58.99
NET OPERATING EXPENDITURES 38,800,222.00 21,921,904.79 56.50
1522
Attachment ''B"
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
Continuity of Taxes Receivable
or the Second Quarter of the Year 2009
March 31, 2009 JUNE JUNE
BEGINNING BALANCE INTEREST TAXES PAYMENTS/ 2009 2008
RECEIVABLE ADDED BILLED BALANCE ADJUST.***
CURRENT YEAR
TAXES (3,201,760) 55,920,279 52,718,519 (45,264,170) 7,454,348 6,778,235
PENALTY AND INTEREST 27 683 169 876 197,559 89 186 108 373 97 046
FIRST PRIOR YEAR
TAXES 4,211,964 4,211,964 (744,335) 3,467,630 2,935,245
PENALTY AND INTEREST 313,039 148,563 461,602 128 556 333,046 267 739
SECOND PRIOR YEAR
TAXES 1,557,406 1,557,406 (253,538) 1,303,868 1,120,107
PENALTY AND INTEREST 218 959 55,573 274,532 62,091 212 441 183 843
HIRD & PRIOR YEARS
TAXES 1,088,288 1,088,288 (135,649) 952,639 976,345
PENALTY AND INTEREST 482,631 38 849 521 480 56,024 465,456 424,025
OTAL 4,698,210 412 860 55,920,279 61 031,349 46 733 548 14 297,801 12,782,585
* Includes refunds, write-offs, 357's, etc.
NOTE 1: 2009 Interim Instalment months: February and April
2009 Final Instalment months: June and September for non-capped classes
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
INVESTMENTS OUTSTANDING
AS AT JUNE 30, 2009
ATTACHMENT"C"
FINANCIAL INVESTMENT INTEREST MATURITY MATURITY
INSTITUTION COST RATE VALUE DATE
GENERAL FUND
TOTAL GENERAL FUND 0.00
CAPITAL FUND
TOTAL CAPITAL FUND 0.00
RESERVE FUND
Bond-Canada RBC 3,796,000.00 4.10% 3,949,738.00 29-Jul-2009
GIC-Royal Bank RBC 664,993.00 4.25% 753,434.00 29-Aug-2009
Banker Acceptance HBSC 3,205,273.20 0.64% 3,208,000.00 9-Sep-2009
B/A-RBC RBC 617,721.90 0.18% 618,000.00 22-Sep-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
GIC-BNS RBC 461,911.53 0.70% 465,144.91 28-May-2010
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
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% 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 14-Oct-2013
GIC-BNS RBC 1,338,742.00 4.15% 1,640,564.30 16-Dec-2013
TOTAL RESERVE FUND 35,527,337.15
TOTAL INVESTMENTS 35,527,337.15
Investment interest paid on a monthly/semi-annual/annual basis