HomeMy WebLinkAboutFND-020-10~Cjp~'l0Il REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION
Date: SEPT 13, 2010 Resolution#: (~/~'- S~La.ia By-law#: /V~/i'
Report: FND-020-10 File#:
Subject: FINANCIAL UPDATE AS AT JUNE 30, 2010
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
THAT Report FND-020-10 be received for information.
Submitted by:
NT/LB/hjl
Reviewed by:
ancy Ta or, B , C.A
Director of Finance/
Treasurer
~k'`~
Franklin Wu,
Chief Administrative Officer
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1 C 3A6 T (905)623-3379
REPORT NO.: FND-020-10
1.0 BACKGROUND AND COMMENT:
PAGE 2
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-010-10 presented previously to Council except as noted below.
2.0 SECOND 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 June 30, 2010. The statement reflects the Municipality's operating budget
only and excludes year to date expenditures for the consolidated hall/arena
boards. Net year to date expenditures to June 30, 2010 total $21,040,526 which
represents 52.01 % of the net annual 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 annual operating budget expended
drops to 43.88%.
2.2 Attachment "A" is intended to provide an indication of the status of the
Municipality's operating accounts compared to the approved budget. In an effort
to limit the impact that high levels of activity during specific times of the year have
on the budget to actual comparison, the year to date budget column in
attachment "A" reflects the budget allocation for the current year based on each
period's proportionate share of the prior year actual account activity for that
period 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, more of
the budget activity related to these activities would appear in the winter months.
2.3 Attachment "A" has also been expanded to include additional columns for current
period changes. The fifth column summarizes the budget allocation for the three
month period of the report (quarterly budget). This allocation is based on each
period's proportionate share of the prior year actual account activity for the same
three periods of the prior year. The sixth column summarizes the actual account
activity for the three month period of the report (second quarter).
2.4 The Engineering and Planning department's revenue is better than anticipated
and as discussed in FND-018-10 this may still 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 two
quarter results cannot be extrapolated over the balance of the year, as too many
variables are still unknown in the market (ie. Recovery HST impact, etc.).
2.5 The Net Board and External Agency section has been added to the report to
reflect its activity separate from the Non-Departmental section.
REPORT NO.: FND-020-10 PAGE 3
2.6 Attachment "B", Continuity of Taxes Receivable for the three months ending June
30, 2010 provides the status of the taxes billed and collected by the Municipality
of Clarington during the Second quarter of 2010. A total of $30,655,362 in
interim tax bills and $27,134,412 in final tax bills were issued to property owners
in the Municipality during this period. At the end of June, a total of $15,163,777
remains unpaid. The net balance is $865,976 higher than the prior year at this
time. Generally this is the high point of the year because three instalments have
been billed. This balance will continue to be closely monitored throughout the
balance of 2010 and enhanced collection efforts remain in place.
2.7 The changes in collection processes and procedures implemented during the
fourth quarter of 2009 and the first half of 2010 have been relatively successful in
reducing the balance of taxes outstanding for period of more than three years.
These innovations will be continued throughout 2010 in an effort to improve the
effectiveness of collection for more current tax arrears as well.
2.8 Attachment "C", Outstanding Investments as at June 30, 2010 provides the
status of the Municipality's general, capital and reserve fund investment holdings
at the end of the second quarter of 2010. The Municipality at June 30th holds $0
in general fund investments, $0 in capital fund investments, and $35,458,808.13
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, general fund
investments are held in the Municipality's general bank account due to interest
rates that are more favourable than money market instruments.
2.9 Attachment "D", Debenture Repayment Schedule as of January 1, 2010 provides
the status of the Municipality's long-term obligations. The Municipality has
$32,289,011.59 in outstanding debt at January 1, 2010 and debt repayment
obligations of $4,404,690.66 for 2010 as reflected in the 2010 budget. The
annual principal and interest payments required to service these liabilities are
within the annual debt repayment limits prescribed by the Ministry of Municipal
Affairs and Housing.
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 "D" Debenture Repayment Schedule
THE MUNICIPALITY OF CLARINGTON
SUMMARY OF OPERATING EXPENDITURES 8 RE4ENUES
FOR THE THREE MONTHS ENDING JUNE 30, 2010
ATTACHMENT"A"
1010 YEAR TO DATE YEAR TO DATE QUARTERLY OUARTERLY %c(Annual
DEPARTMENT ANNUAL BUDGE BUDGET EXPENDED BUDGET EXPENDED Budget Spent
NON-Departmenal:
Expenditures 1%,667.00 171,500.00 171,500.00 33,735.00 - 86.33
RevenueslRecwenes (excluding tax) 7,398,768.00 4,847,734.00 5,745,941.00 4,613,034.00 311,926.00 77.66
Net NOn-Departmental 7,200,101.00 4,676,234.00 5,574,441.00 4,579,299.00 311,926.00 77.42
Office of the Mavor 8 Council:
Net OHlce of the Meyor& Council 794,655.00 390,509.00 397,227.00 197,810.00 196,028.00 49.99
Office o(the CAO:
Net OHlee o(the CAO 369,758.00 178,453.00 209,575.00 95,804.00 119,431.00 53.77
Lepal Atlminlstnlion:
Expenditures 358,000.00 178,998.00 99,854.00 89,4%.00 99,854.00 27.89
Revenues/Recoveries 80,000.00 40,002.00 20,001.00
Net Legal Atlminlstratlon 278,000.00 138,9%.00 99,854.00 69,498.00 99,854.00 35.92
Comorale Services:
Expenditures 3,580,916.00 1,769,682.00 1,768,971.00 1,027,111.00 764,400.00 49.40
Revenues/Rewveries 122,200.00 73,364.00 97,733.00 15,434.00 57,024.00 79.98
Net Corporate Services 3,458.716.00 1,6%,31500 1,671,238.00 1,011,677.00 707,376.00 48.32
Clerks:
Expenditures 2,258,804.00 1,138,200.00 1,089,144.00 656,249.00 554,35500 48.22
RevenueslRecoveries 544,500.00 232,943.00 277,844.00 149,814.00 181,026.00 51.03
Nat Clerks 1,714,304.00 905,257.00 611,300.00 506,435.00 373,329.00 47.33
Finance:
Unclassified aomin 8 Bcartl o(Trade 2,078,533.00 1,026,209.00 1,252,521.22 754,920.00 670,290.22 60.26
Operating Expenditures 1,760,116.00 893,216.00 904,381.00 488,297.00 515,336.00 51.38
&penditures 3,838,649.00 1,919,425.00 2,156,902.22 1,243,217.00 1,185,626.22 56.19
Revenues/Recoveries 7,272,000.00 552,747.00 1,002,131.00 278,451.00 543,942.00 78.78
Nel Finance 2,566,649.00 1,366,684.00 1,754,771.22 964,766.00 641,684.22 44.99
Emerpencv Services:
Expendaures 8,038,979.00 3,912,526.00 3,679,557.00 2,298,574.00 1,834,760.00 45.77
RevenuesRecoveries 9,250.00 5,012.00 24,688.00 3,238.00 8,370.00 266.90
Net Emergency Services 8,029,729.00 3,907,514.00 3,654,869.00 2,295,336.00 1,825,790.00 45.52
Enolneerln¢
Expenditures 4,608,041.00 3,276,263.00 3,085,718.00 2,603,715.00 678,853.00 66.%
RevenueslRecoveries 899,050.00 624,356.00 970,218.00 417,341.00 558,426.00 107.92
Net Engineering 3,708,991.00 2,651,907.00 2,115,500.00 2,186,374.00 120,425.00 57.04
O eratlon:
Fleet80ebenture Pmis 1,723,013.00 1,484,485.00 1,344,704.00 443,712.00 107,101.00 78.04
Operating Expenditures 11,336,662.00 5,927,045.00 5,498,534.00 3,801,322.00 2,305,992.00 48.50
Expenditures 13,059,675.00 7,411,530.00 6,843,238.00 4,245,034.00 2,413,093.00 5240
Revenues/Recoveries 454,800.00 65,922.00 198,417.00 54,863.00 163,188.00 43.63
Net Operations 12,604,875.00 7,345,608.00 6,644,821.00 4,190,171.00 2,249,905.00 52.72
Communiri Services:
Annual Greats & Debenture Pmri 3,495,645.00 3,084,667.00 3,052,052.00 45,250.00 3,373.00 87.31
Operating Expenditures 8,623,761.00 3,788,203.00 3,923,273.00 2,096,186.00 1,834,185.00 45.49
Expenditures 12,119,406.00 6,873,070.00 6,975,325.00 2,141,436.00 1,837,558.00 57.56
RevenueslRecoveries 4,540,500.00 2,159,133.00 2,149,769.00 720,021.00 685,039.00 47.35
Nat Community Services 7,578,906.00 4,713,937.00 4,825,556.00 1,421,475.00 1,752,519.00 63.67
Planning Servlcer'
Expenditures 3,473,910.00 2,171,23200 2,057,853.00 1,540,505.00 785,440.00 59.24
RevenueslRecoveries 296,100.00 106,750.00 302,511.00 91,923.00 148,449.00 102.17
Net Planning Services 3,177,810.00 2,064,482.00 1,755,342.00 1,448,562.00 636,997.00 55.2d
BOARDS AND AGENCIES
Nel Boards and External Agency 3,352,268.00 3,343,268.00 3,374,768.00 621,382.00 1,303,800.00 100.67
TOTAL OPERATING
Expenditures 56,071,728.00 32,734,656.00 31,809,778.22 16,704,572.00 11,672,744.22 - 56.73
RevenueslRecoveries 15,617,168.00 8,707,957.00 iQ769,252.00 6,344,119.00 2,657,392.00 68.%
NET OPERATING EXPENDITURES 40,454,560.00 24,02Q6%.00 21,040,52622 10,360,453.00 .9,075,352.22 52.07
ATTACHMENT "B"
ORPORATION OF THE MUNICIPALITY OF CLARINGTON
Continuity of Taxes Receivable
for the Second Quarter of the Vear 2010
March 31, 2010 JUNE JUNE
BEGINNING BALANCE INTEREST TAXES PAYMENTS! 2010 2009
RECEIVABLE ADDED BILLED BALANCE ADJUST."'
CURRENT YEAR
TAXES (4,280,487) 57,789,775 53,509,288 (45,557,184) 7,952,104 7,454,348
PENALTY AND INTEREST 25,010 168,783 193.793 86.366 107427 108,373
FIRST PRIOR YEAR
TAXES 4,918,608 4,918,608 (875,606) 4,043,003 3,467,630
PENALTY AND INTEREST 321,415 169,958 497,373 165,505 325.867 333,046
SECOND PRIOR YEAR
TAXES 1,950,298 1,950,298 (578,470) 1,431,828 1,303,868
PENALTY AND INTEREST 271,932 64 740 336 671 169,742 166,929 212441
THIRD & PRIOR YEARS
TAXES 1,091,341 1,091,341 (232,808) 858,532 952,639
PENALTY AND INTEREST 347,247 36,848 384,095 106,008 278 087 465,456
SUB-TOTAL 4,645,363 403,481 57 Y89 775 62,491,371 47,605,681 15163 777 14,297,801
PREPAID TAXES 4,280,487
OTAL 8925,850 403,481 57,789,775 62,491,371 47,605681 15163,777 14,297,801
Includes refunds, write-offs, 357's, etc.
NOTE 1: 2010 Interim Instalment months: February and April
2010 Final Instalment months: June and September for non-capped classes
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
INVESTMENTS OUTSTANDING
AS AT JUNE 30, 2010
ATTACHMENT"C"
FINANCIAL INVESTMENT INTEREST MATURITY MATURITY
INSTITUTION COST RATE VALUE DATE
GENERAL FUND
TOTAL GENERAL FUN 0.00 0.00
CAPITAL FUND
TOTAL CAPITAL FUND 0.00 0.00
RESERVE FUND
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
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
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 * 1,371,860.00 3.00% 1,499,070.00 13-Jun-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 35,458,808.13 41,772,487.94
TOTAL INVESTMENTS 35,458,808.13 41,772,487.94
* Investment interest paid on asemi-annual/annual basis
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