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F,nergizing Ontario
REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: Monday November 16th, 2009
Resolution #: ~P~ ~ ~~^~
Report #: FND-030-09 File
By-law
Subject: FINANCIAL UPDATE AS AT SEPTEMBER 30T", 2009
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-030-09 be received for information.
i _
Submitted by: Reviewed by:~ --~ ~~~~
Nancy T y or .B.A., C.A., Franklin Wu,
Directo of Fi ancelTreasurer Chief Administrative Officer.
NT/LB/hjl
REPORT NO.: FND-030-09
BACKGROUND AND COMMENT:
PAGE 2
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-021-09 presented previously to Council. The 2009 Budget column has
been amended to reflect changes approved by Council on August 31, 2009
through report CAO-004-09.
2.0 Third Quarter of 2009 Results
2.1 Attachment "A", the Summary of Operating Expenditures and Revenue statement
compares the Municipality's amended budget to actual posted expenditures and
revenue as of September 30, 2009. The statement reflects the Municipality's
amended operating budget only and excludes year to date expenditures for the
consolidated hall/arena boards. Net expenditures to September 30, 2009 total
$27,686,948.61 which represents 71.36% of the net amended 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 68.67%.
2.2 Attachment "A" is intended to provide an indication of the status of the
Municipality's operating accounts compared to the approved amended budget as
at September 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 Of the total Planning revenue reported, Planning application revenues earned at
the end of the third quarter represent $126,186.62 or 67.84% of the 2009
Amended Budget. Due to the timing of billings for recovery of Port Granby
expenses incurred, the Planning Environmental revenues earned at the end of
the third quarter represent only $22,523.41 or 27.64% of the 2009 Amended
Budget. This is a timing issue only due to the Federal Government Fiscal
quarters.
2.4 Attachment "B", Continuity of Taxes Receivable for the three months ending
September 30, 2009 provides the status of the taxes billed and collected by the
Municipality of Clarington during the third quarter of 2009. A total of $37,619,975
in final bills were issued to property owners in the Municipality during this period.
At the end of September, a total of $20,362,081 remains unpaid. The balance is
$3,816,000 higher than the prior year at this time. This balance will continue to
be closely monitored throughout the balance of 2009.
REPORT NO.: FND-030-09
PAGE 3
2.5 Due to the increase in outstanding taxes at the end of this quarter, a review has
been undertaken to assess the current collection procedures and recommend
innovations. The implementation of recommended changes includes an increase
in the number of arrears notices issued to remind taxpayers of their outstanding
balances past due; personal phone contact of property owners who will be
eligible for tax sale in the coming year to explain their options; contracting the
services of a bailiff to assist in personalized collection efforts; and improved
contact with mortgage companies. These efforts combined with a stabilizing
economic outlook, should help bring the Tax Receivable balance back in line for
the fourth quarter.
2.6 Included in the outstanding balance at the end of September are a number of
unadjusted property issues that once approval has been received to adjust the
property value will cause a decrease to the tax receivable of approximately
$325,000. In addition to these adjustments, it was noted that the transfer
payment from the Province for their Payment in Lieu of Taxes was not received
in the third quarter as in 2008. This payment of just over $200,000 was received
at the beginning of November.
2.7 A preliminary review of the October month end tax receivable balance
outstanding has shown a notable decrease of approximately $5.3 million in the
year to year outstanding balance when compared to this September report.
Although still approximately $1.6 million higher than the October 2008 balance, it
is evident that efforts mentioned above are starting to have an effect.
2.8 Attachment "C", Outstanding Investments as at September 30, 2009 provides the
status of the Municipality's general, capital and reserve fund investment holdings
at the end of the third quarter of 2009. The Municipality at September 30 holds
$0 in general fund investments, $0 in capital fund investments, and
$40,121,427.28 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.
REPORT NO.: FND-030-09
PAGE 4
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 & REVENUES
TO SEPTEMBER 30, 2009
2009 AMENDED EXPENDED %
DEPARTMENT BUDGET TO SEPTEMBER 30 SPENT
NON-Departmental:
Expenditures (including Library) 3,281,124.00 3,228,904.56 98.41
Revenues/Recoveries (excluding tax) (8,OD0,003.00J (7 571 162.29) 94 64
Net Non-Departmental (4,718,879.00) (4 342 257.73) 92 02
Office of the Mavor 8 Council:
Net Office of the Mayor & Council 766,758.00 550,743.41 71.83
Office of the CAO:
Net Office of the CAO 399,608.00 294,766.35 73.76
Corporate Services:
Expenditures 3,463,518.00 2,527,367.20 72.97
Revenues/Recoveries (181,500.00) (162 666.16) 89 82
Net Corporate Services 3,282,018.00 2,364,701.04 72.05
Clerks:
Expenditures 2,143,827.00 1,687,080.56 78.69
Revenues/Recoveries (437,100.OD) (445198.62) 10185
Net Clerks 1,706,727.00 1,241,881.94 72,76
Finant:
Unclassified admin & Board of Trade 2,768,318.00 1,847,751.78 66.75
Operating Expenditures 1,697,392.00 1,251,612.87 73.74
Expenditures 4,465,710.00 3,099,364.65 69.40
Revenues/Recoveries (1,372,000.00) (1 247 898.37) 90 95
Net Finance 3,093,710.00 1,851,465.28 59.85
Emergencv Services:
Expenditures 7,475,169.00 5,557,370.72 74.34
RevenuesfRecoveries (9,250.00) (22 629.84) 244 65
Net Emergency Services 7,465,919.00 5,534,740.88 74.13
Engineering:
Expenditures 3,632,039.00 2,923,739.01 80.50
Revenues/Recoveries (652,450.00) (631 828.07) 96 84
Net Engineering 2,979,589.00 2,291,910.94 76.92
Operation:
Fleet & Debenture Pmts 1,752,573.00 1,408,221.54 80.35
Operating Expenditures 11,318,631.00 8,239,452.57 72.80 -
Expenditures 13,071,204.00 9,647,674.11 73.81
RevenueslRecoveries (405,000.DO) (288 713.35) 71 29
Net Operations 12,666,204.00 9,358,960.76 73.89
Community Services:
Annual Grants & Debenture Pmts 3,223,829.00 2,736,929.19 84.90
Operating Expenditures 8,452,228.00 5,531,424.42 65.44
Expenditures 11,676,057.00 8,268,353.61 70.81
Revenues/Recoveries (4,649,639.00) (2 966 655.83) 63 80
Net Community Services 7,026,418.00 5,301,697.78 75.45
Planning Services:
Expenditures 4,399,650.00 3,387,047.99 76.98
Revenues/Recevedes (267,500.00) (148 710.03) 55 59
Net Planning Services 4,132,150.00 3,238,337.96 78.37
TOTAL OPERATING:
Expenditures 54,774,664.00 41,172,412.17 75.17
Revenues/Recoveries (15,974,442.00) (13 485 463.56) 84 42
NET OPERATING EXPENDITURES 38,800,222.00 27,686,948.61 71.36
Attachment "B"
ORPORATION OF THE MUNICIPALITY OF CLARINGTON
Continuity of Taxes Receivable
or the Thirtl Quarter of the Year 2009
June 30, 2009
BEGINNING BALANCE
RECEIVABLE
INTEREST
ADDED
TAXES
BILLED
BALANCE
PAYMENTS!
ADJUST."" SEPTEMBER
2009 SEPTEMBER
2008
CURRENT YEAR
TAXES
PENALTY AND INTEREST 7,454,348
108 373
248 369 37,679,975 45,074,324
356,742 (30,718,773)
115 616 14,355,551
247 725 11,478,828
199,329
FIRST PRIOR YEAR
TAXES
PENALTY AND INTEREST 3,467,63D
333046
122,336 3,467,630
455,382 (621,567)
103,606 2,846,062
351,776 2,385,179
273,177
SECOND PRIOR YEAR
TAXES
PENALTY AND INTEREST 1,303,868
212 441
45 831 7,303,868
258,273 (109,356)
52,225 1,194,512
206 047 869,857
171 826
HIRD & PRIOR YEARS
TAXES
PENALTY AND INTEREST 952,639
465,456
33,188 952,639
498,644 (164,851)
119,424 787,788
379,220 785,108
382,777
OTAL 14,297 801 449,724 37,619 975 52 367,500 32 005 419 20 362,081 16 546 081
Includes refunds, write-offs, 35TS, etc.
NOTE 1: 2009 Interim Instalment months: February and April
2009 Final Instalment months: June and September
ATTACHMENT"C"
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
INVESTMENTS OUTSTANDING
AS AT SEPTEMBER 30, 2009
FINANCIAL INVESTMENT INTEREST MATURITY MATURITY
INSTITUTION COST RATE VALUE DATE
GENERAL FUND
TOTAL GENERAL FUN 0.00
CAPITAL FUND
TOTAL CAPITAL FUND 0.00
RESERVE FUND
Bond-Canada RBC 739,938.86 3.55°k 869,800.00 1-Oct-2009
B/A-BMO RBC 1,787,409.00 2.70% 1,835,669.04 2-Dec-2009
B/A-HSBC HSBC 3,205,433.60 0.33% 3,208,OOO.D0 7-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
GIC-Royal Bank RBC 945,000.00 2.00% 963,900.00 10-Sep-2010
GIC-Royal Bank RBC 618,000.00 2.00°k 630,360.00 25-Sep-2010
Bond-Canada RBC 5,094,062.47 4.10% 6,058,590.00 1-Oct-2010
GIC-National Bank RBC 1,500,OOD.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°k 1,244,090.00 2-Dec-2011
GIC-Royal Bank RBC 2,000,000.00 4.05% 2,439,161.00 16-Mar-2012
GIC-BNS RBC 4,349,427.00 2.60°/a 4,697,579.00 13-Jul-2012
B/A-TD RBC 1,471,061.00 4.80% 1,859,675.00 30-Oct-2012
Bond-Ontario RBC 699,779.86 2.50% 759,557.00 2-Dec-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°k 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.D0 25-Mar-2013
GIC TD 257,495.00 4.51% 321,D39.00 13-May-2013
GIC-BNS RBC 2,060,630.00 3.10% 2,328,277.00 30-Jul-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-Deo2013
Bond-Ontario RBC 999,807.77 3.35% 1,191,382.00 2-Dec-2014
TOTAL RESERVE FUND 40,121,427.28
TOTAL INVESTMENTS 40,121,427.28
' Investment interest paid on a monthly/semi-annual/annual basis