HomeMy WebLinkAboutFND-010-10C~c'111I1gC0Il REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION
Date: MAY 3'd, 2010 Resolution#: ~~~ a90-/G By-law#: N//~}
Report: FND-010-10 File:
Subject: FINANCIAL UPDATE AS AT MARCH 31, 2010
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-010-10 be received for information.
Submitted by:
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Director of
Treasurer
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Reviewed by:
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Franklin Wu,
Chief Administrative Officer
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379
REPORT NO.: FND-010-10
PAGE 2
1.0 BACKGROUND AND COMMENT:
1.1 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-006-10 presented previously to Council.
2.0 FIRST QUARTER OF 2010 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 March 31, 2010. The statement reflects the Municipality's operating budget
only and excludes year to date expenditures for the consolidated hall/arena
boards. Net expenditures to March 31, 2010 total $11,450,719 which represents
28.31 % 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 operating budget expended drops to 17.87%.
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 March
31, 2010. 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 revenue and expenses. Due to these timing differences,
this statement cannot be used in isolation.
2.3 The Operations Department has experienced a drop in weather related activity
due to milder winter conditions during the first quarter of 2009. Expenditure
accounts directly related to winter maintenance show actuals for 2010 that are
58.81 % lower than those recorded in the same period last year.
2.4 The Engineering and Planning department's revenue is better than anticipated
and as discussed in FND-008-10 this may be a reflection of some pent-up
demand remaining from the 2009 economic climate. Application fees are not a
steady stream rather they are intermittent throughout the year. The first quarter
results cannot be extrapolated over the balance of the year.
2.5 The Legal Administration section has been added to the report to reflect the
addition of this department. No current operating activity exists, as the position
was not filled as of the end of the first quarter. Legal costs incurred to date in
2010 are currently being charged to the legal accounts previously established as
2010 will be a transition year.
REPORT NO.: FND-010-10
PAGE 3
2.6 Attachment "B", Continuity of Taxes Receivable for the three months ending
March 31, 2010 provides the status of the taxes billed and collected by the
Municipality of Clarington during the First quarter of 2010. A total of $30,655,363
in interim tax bills were issued to property owners in the Municipality during this
period. At the end of March, a total of $8,925,850 remains unpaid. However,
currently on hand are prepaid taxes through the pre-authorized payment system
and prepaid taxes for the April 2009 installment of $4,645,363. The net balance
of $4,645,363 is slightly lower than the prior year at this time.
2.7 The changes in collection processes and procedures implemented during the
fourth quarter of 2009 and the first quarter of 2010 have been relatively
successful in reducing the balance of taxes outstanding since the 2009 third
quarter report. These innovations will be continued throughout 2010.
2.8 Attachment "C", Outstanding Investments as at March 31, 2010 provides the
status of the Municipality's general, capital and reserve fund investment holdings
at the end of the first quarter of 2010. The Municipality at March 31 holds $0 in
general fund investments, $0 in capital fund investments, and $35,282,632.29 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.
3.0 CONCLUSION:
3.1 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
ATTACHMENT"A"
THE MUNICIPALITY OF CLARINGTON
SUMMARY OF OPERATING EXPENDITURES & REVENUES
TO MARCH 31, 2010
2010 EXPENDED %
DEPARTMENT DRAFT BUDGET TO MARCH 31 SPENT
NON4)eoarimental:
Expenditures (Including Library&BOards) 3,550,935.00 2,054,182.00 57.85
Revenues/Recovedes {excluding tax) (7,398,768.00) 63,478.00 (0.88)
Net Non-Departmental (3,847,833.00) 2,117,660.00 (55.04)
Office of the Mavor & Council:
Net Office of the Mayor & Council 794,655.00 201,168.00 25.32
Office of Ne CAO:
Net OMce of the CAO 389,758.00 90,144.00 23.13
Lana) Administration:
Expendltures 356,000.00 -
Revenues/Recoveries (80,000.00)
Nat Legal AdminisVadon 278,000.00
Corporate Services:
Expendltures 3,580,916.110 839,340.00 23.44
Revenues/Recoveries (122,200.00) (37,787.00) 30.92
Net Corporate Services 3,458,718.00 801,553.00 23.17
Clarks:
Expenditures 2,258,804.00 436,937.00 19.34
Revenues/Recoverie5 (544,500.00) (96,975.00) 17.81
Net Clerks 1,714,304.00 339,862.00 19.83
Finance:
Undassfied admin & Board of Trade 2,078,533.00 128,698.00 6.19
Operating Expenditures 1,780,118.00 388,288.00 22.08
Expendinues 3,838,849.00 516,964.00 13.47
Revenues/Recovedes (1,272,000.00) (456,647.00) 35.90
Net Finance 2,566,648.00 60,317.00 2.35
Ememencv Services
Expentli[ures 8,038,979.00 1,419,892.00 17.88
RevenueslRecoveries (9,250.00) (18,318.00) 178.41
Net Emergency Services 8,029,729.00 1,403,574.00 17.48
Engineering•
Expenditures 4,608,041.00 536,887.110 11.85
RevenueslRecoveries (889,050.00) (411,790.00) 45.80
Nat Engineering 3,708,991.00 124,877.00 3.37
Operation:
FleelB DebeMUre Pmts 1,723,013.00 837,596.00 48.61
Operating Expenditures 11,336,662.00 1,951,521.00 17.21
Expenditures 13,059,875.00 2,788,117.00 21.36
Revenues/Recovedes (454,800.00) (35,230.00) 7.75
Net Operations 12,804,875.00 2,753,887.00 21.85
Community Services:
Annual Grans & Debenture Pmts 3,495,845.00 3,048,879.00 87.21
Operating Expentli[ures 8,623,761.00 1,612,150.00 18.89
Expendtures 12,119,408.00 4,660,829.00 38.46
RevenueslRecoveries (4,540,500.00) (1,464,737.00) 32.26
NM Community Services 7,578,906.00 3,196,092.00 42.17
Planning Services:
Expenditures 3,473,910.00 575,547.00 14.84
RevenueslRecoveries (296,100.00) (154,062.00) 52.03
Net Planning Services 3,177,810.00 361,485.00 11.38
TOTAL OPERATING
Expenditures 58,071,728.00 14,060,787.00 25.08
Revenues/Recoveries (15,617,168.00) (2,610,088.00) 16.71
NET OPERATING EXPENDITURES 40,454,560.00 11,450,719.00 28.31
Attachment "B"
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
Continuity of Taxes Receivable
or the First Quarter of the Year 2010
December 31, 2009 MARCH MARCH
BEGINNING BAL. INTEREST TAXES PAYMENTS/ 2010 2009
RECEIVABLE ADDED BILLED BALANCE ADJUST."'
CURRENT YEAR
TAXES - 30,655,363 30,655,383 (34,935,850) (4,280,487) (3,201,760)
PENALTY AND INTEREST 150 701 150 701 125 691 25 010 27 6B3
FIRST PRIOR YEAR
TAXES 6,628,375 6,628,375 (1,709,767) 4,918,608 4,211,964
PENALTY AND INTEREST 308 099 133 719 441,817 120 403 321 415 313 039
ECOND PRIOR YEAR
TAXES 2,654,104 2,854,104 (703,808) 1,950,298 1,557,406
PENALTY AND INTEREST 295 133 27 513 322 645 50 714 271 932 218,959
HIRD & PRIOR YEARS
TAXES 1,448,667 1,448,687 (357,326) 1,091,341 1,088,288
PENALTY AND INTEREST 490 658 82 623 573 281 226 034 347 247 482 631
SUB-TOTAL 11 825 035 394 555 30 655 363 42 874 952 38 229 589 4 645,363 4 698 210
PREPAID TAXES 2 497 599
TOTAL 9,327 437 394 555 30 655 363 42 874 952 38 229 589 4645 363 4 698 210
Inclutles refuntls, write-offs, 357's, etc.
NOTE 1: 2010 Intedm Instalment months: February and Apnl.
NOTE 2: Current year taxes are in a negative position because they inGude taxes prepaid for the Apol instalment.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
INVESTMENTS OUTSTANDING
AS AT MARCH 31, 2010
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
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 2Jun-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% 630,360.00 25-Sep-2010
Bond-Canada RBC 5,094,062.47 4.10% 6,058,590.00 1-Oct-2010
Bond-Canada RBC 869,799.71 0.50% 874,786.00 1-Dec-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
BA-Royal Bank RBC 24,186:76 0.09% 24,208.04 15-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
Band-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
GIC-BNS RBC 4,349,427.00 2.60% 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% 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-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-Dec-2013
Bond-Ontario RBC 999,807.77 3.35% 1,191,382.00 2-Dec-2014
TOTAL RESERVE FUND 35,282,632.29
TOTAL INVESTMENTS 35,282,632.29
* Investment interest paid on asemi-annual/annual basis