HomeMy WebLinkAboutFND-018-11 FINANCE Claiftymn REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: September 12, 2011 Resolution#: By-law#:
Report#: FND-018-11 File#:
Subject: FINANCIAL UPDATE AS AT JUNE 30, 2011
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-018-11 be received for information.
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Submitted by: Reviewed by:
ancy T ylor, 9bA, CA. Franklin Wu,
Directo of Finance/ Chief Administrative Officer
Treasurer
NT/CC/hjl
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: FND-018-11 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-008-11 presented previously to Council.
2.0 SECOND QUARTER OF 2011 RESULTS
2.1 Attachment "A", The Summary of Operating Expenditures and Revenue
statement compares the Municipality's budget to actual posted expenditures as
of June 30, 2011. 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, 2011 total $28,174,812 which
represents 90.68% of the year to date budget as of the end of the second
quarter. If this was measured against the total net operating budget for the 2011
year the percent of the operating budget expended to June 30th is 65.73%. This
includes annual grants and debentures that occur at the beginning of the year.
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, 2011. 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. The budget is allocated monthly
based on the 2010 actual monthly distribution. In cases where there is no prior
year history, the monthly budget allocation is divided equally over the 12 months.
The Legal department allocation has been evenly distributed over the 12 months
due to the lack of prior year history. While this is best method available to be
reflective of seasonal trends, there may be some variations from year to year.
Due to these timing differences, this statement cannot be used in isolation.
2.3 In general, the operating budget is overall on target. Some of the variances can
be attributed to the timing differences in revenue and expenditures between 2010
and 2011. In comparing the second quarter only actual to budget the
expenditures are 82.2% of the second quarter budget. When comparing the year
to date budget as of June 30th, the expenditures are at 90.7% of the year to date
budget. Both these percentages indicate that overall the expenditures are in-line
with the 2011 budget. When looking at the total 2011 budget, the expenditures
are at 65.7%, in part due to the annual grants and debentures occurring early in
the year.
2.4 As noted above the Legal Department does not have a full year of historical
reference for the 2011 budget dispersion. Therefore the equal monthly
REPORT NO.: FND-018-11 PAGE 3
allocation does not reflect the actual allocation. As of June 30th, the net Legal
expenditures are 45.83% of the total 2011 budget.
2.5 The Non-Departmental revenues are slightly higher than the second quarter year
to date budget. As in the first quarter, this is mainly due to the timing of the
investment maturities. The 2010 maturities and interest earned do not
necessarily match the 2011 maturities.
2.6 The Finance revenues are higher than the quarterly budget. This is due to the
higher than budget amount of the fines and penalties on taxes. However, the
second quarter year to date figures of 2011 ($859,165) is comparable to the
2010 second quarter year to date interest and penalties ($825,063).
2.7 The Emergency Services revenue has improved over the second quarter. The
total year to date expenditures as of June 30th, represent 46.35% of the total
2011 budget.
2.8 The Operations Department revenue has improved over the second quarter but
is still lower than budgeted. This is related to the first quarter budget notes — a
decrease in entrance culvert fees and in the seniors' snow clearing fee.
2.9 The Operations Department year to date net expenditures is 60.82% of the total
2011 budget. The 2011 debenture payments have been posted in the general
ledger. If the debenture payments are removed from the calculation, the
Operations department year to date net expenditures are 50.4% of the total 2011
budget.
2.10 Community Services year to date expenditures as of June 30th are approximately
88.9% of the 2011 budget as of June 30th. There is a slight decrease in some
facility rentals which are being monitored by the Community Services
Department.
2.11 The Planning Department revenues and expenditures vary from the second
quarter budget. However the timing of the Planning activities are not necessarily
seasonal and cannot always be predicted by the previous year's timing. As of
June 30th, the Planning department net expenditures year to date are 54.88% of
2011 total budget.
2.12 Attachment "B", Continuity of Taxes Receivable for the six months ending June
30, 2011 provides the status of the taxes billed and collected by the Municipality
of Clarington during the second quarter of 2011. A total of $30,655,363 in interim
tax bills and $29,444,540 in final tax bills were issued to property owners in the
Municipality during this period. At the end of June, a total of $15,079,785
REPORT NO.: FND-018-11 PAGE 4
remains unpaid. The net balance is $83,992 lower than the prior year at this
time. The changes in collection processes and procedures implemented during
2009 and continued since that time have been successful in holding the line on
the balance of taxes outstanding. The 2011 second quarter results reflect the
continued success in 2011.
2.13 Attachment "C", Investments Outstanding as of June 30, 2011 provides the
status of the Municipality's general, capital and reserve fund investment holdings
at mid-year. The Municipality at June 30, 2011 holds $0 in general fund
investments, $0 in capital fund investments and $36,305,385.40 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 requirements of Section 418 on the Ontario Municipal Act and the
Municipality's investment policy. Currently, general fund investments are held in
the Municipality's general bank account as the interest rate on the account is
more favourable than money market instruments. The investments are
unchanged from March 31, 2011.
2.14 Attachment "D", Debenture Repayment Schedule as of January 1, 2011 provides
the status of the Municipality's long-term obligations. The Municipality has
$29,504,357.59 in outstanding debt as of January 1, 2011 and debt repayment
obligations of$$6,785,135.16 for 2011 as reflected in the 2011 budget. The
annual principal and interest payments required to service these liabilities are
well within the annual debt repayment limits prescribed by the Ministry of
Municipal Affairs and Housing. This is unchanged from the first quarter report.
2.15 Attachment "E", Municipal Development Charges as of June 30, 2011 provides
the total Municipal development charges collected of$5,544,688.88. In 2010
Development Charges Background Study, it was forecasted that the municipality
would be collecting approximately 699 residential units total for 2011 or
approximately 58 units per month. We are currently at 371 units mid-year.
2.16 Comparing the number of units issued in 2011 to 2010 in the second quarter,
shows that in 2011 there was an increase of 11.4% in the number of units issued
compared to 2010. In comparing the total dollars collected in 2011 to 2010,
there was an increase of 24.9% in development charges collected. As per the
2010 DC Background Study, there are 699 units forecasted for 2011.
3.0 CONCLUSION
3.1 The report is provided as information to Council. Ongoing reports will be
provided quarterly.
REPORT NO.: FND-018-11 PAGE 5
CONFORMITY WITH STRATEGIC PLAN —
The recommendations contained in this report conform to the general intent of the
following priorities of the Strategic Plan:
_ Promoting economic development
X Maintaining financial stability
_ Connecting Clarington
_ Promoting green initiatives
Investing in infrastructure
_ Showcasing our community
Not in conformity with Strategic Plan
Staff Contact: Nancy Taylor, B.B.A., C.A., Director of Finance/Treasurer
Attachments:
Attachment "A": Summary of Operating and Expenditure and Revenue
Attachment "B": Continuity of Taxes Receivable
Attachment "C": Investments Outstanding
Attachment "D": Debenture Repayment Schedule
Attachment "E": Municipal Development Charges
THE MUNICIPALITY OF CLARINGTON ATTACHMENT"A"
SUMMARY OF OPERATING EXPENDITURES&REVENUES FOR THE THREE MONTHS ENDING JUNE 30,2011
2011: 2011 Total Second: Total Second 20111 %of Annual
YTD Budget:YTD Expended Quarterly Budget? Quarterly Actuals Total Budged Budget Spent
JANJUNE. JAN-JUNE APR-JUN: APR-JUNE
05 NON-DEPARTMENTAL ACCOUNTS -
Expenditures 175,500 167,500 201,022 83.32%
Revenues/Recoveries(excluding taxes (2,007,592); (2,288,080) (1,970,735); (2,213,204) (9,849,768); 23.23%
Net Non-Departmental (1,832,092): (2,120,580) (1,970,735): (2,213,204) (9,648,746): 21.98%
10 MAYOR&COUNCIL
Net office of the Mayor&Council 419,462: 385,470 223,867" 185,258 819,607' 47.03%
13 ADMINISTRATOR'S OFFICE
------- -------- -------_.._------_.---------- ------------..
Net Office of the CAO 217,195. 223,424 119,887 99,234 442,124+ 50.53%
14 LEGAL ADMIN
Revenues/Recoveries (111,054), (36,722) (73,527) (25,389) (186,100)1 19.73%
Expenditures 264,371- 190,794 136,462' 98,713 522,264 36.53%
Net Legal Administration 153,317- 154,072 62,935! 73,324 336,164" 45.83%
16 CORPORATE SERVICES
Revenues/Recoveries (92,686)- (100,222) (56,976) (51,863) (170,560); 58.76%
Expenditures 2,180,7661 1,939,344 1,021,178' 936,762 3,926,8491 49.39%
Net Corporate Services 2,088,080, 964,202- 884,899 3,756,2891 48.96%
19 CLERK'S
Revenue/Recoveries (282,197)1 (239,681) (189,066)] (130,572) (573,000)i 41.83%
Expenditures 1,120,718' 1,088,238 625,603: 599,061 2,198,1401 49.51%
Net Clerks 838,521` 848,557 436,5377 468,489 1,625,140, 52.21%
21 FINANCE&UNCLASSIFIED ADMIN
Revenue/Recoveries (699,616); (1,042,348) (383,433): (567,531) (1,467,000): 71,05%
Unclassified Admin&Board of Trade 1,158,134; 849,501 971,757: 636,505 1,889,444: 44.96%
Operating Expenditures 1,003,751: 993,391 544,292. 478,538 1,952,778! 50.87%
Total Finance Expenditures 2,161,885. 1,842,892 1,516,049! 1,115,043 3,842,222' 47.960/
Net Finance 1,462,269' 800,544 1,132,6161. 547,512 2,375,222' 33.70%
28 EMERGENCY SERVICES-FIRE
Revenue/Recoveries (16,185); (12,023) (6,233)1 (8,621) (35,800), 33.58%
Expenditures 4.616.998, 2,606,883 2,287,059 8,998,173Y 46.30%
Net Emergency Services 4,600,813' 4,154,195 2,600,650: 2,278,438 8,962,373! 46.35%
32 ENGINEERING SERVICES
Revenue/Recoveries (863,572)', (928,477) (514,388); (631,949) (1,309,050);. 70.93%
Expenditures 3,279,8021 3,056,838 2,638,566; 2,387,421 4,769,854` 64.09%
Net Engineering Services 2,416,236: 2,128,361 2,124,1781 1,755,472 3,460,804: 61.50%
36 OPERATIONS
Revenue/Recoveries (197,360)' (117,228) (162,018): (100,609) (426,200). 27.51%
Operating Expenditures 6,367,766; 6,338,397 3,610,913 3,479,025 12,204,317' 51.940/
Fleet&Debentures Payments 3,705.258i 267,773: 180,021 4,049,319: 84.08%
Total Operations Expenditures 10,073,0241 9,743,019 3.878.686; 16,253,636; 59.94%
Net Operations Department 9,875,664! 9,625,791 3,716,668 3,558,437 15,827,436: 60,82/
42 COMMUNITY SERVICES
RevenuelRecoveries (2,325,236)_ (2,276,079) (773,785); (727,036) (4,427,080);. 51,41%
Operating Expenditures 4,608,426 3.974,519 2,499,725 2,065,503 8,981,321. 44,250/
Annual Grants&Debenture Payments 3,094,739; 3,083,286 1,111: 3,000 3,447,9691 89.42%
Total Expenditures 7,703,165, 7,057,805 2,500,836: 2,068,503 12,429,2901, 56.78%
Net Communitiy Services 5,377,929. 4,781,726 1,727,051: 1,341,467 8,002,210: 59.76%
50 PLANNING SERVICES
-Revenue/Recoveries - (243227). _- (363,515) (119,599). -(293,787) (421,525), 86.24%
Expenditures 2,187,212 2,221,920 1,534,725: 1,440,573 3,807,949:' 58.35%
Net Planning Services 1,943,985: 1,858,405 1,415,126 1,146,786 3,386,424- 54,88/
BOARDS&AGENCIES
Net Board and ExternalAgenies 3,507,995'. 3,495,725 1,068,184'. 1,065,568 3,521,596? 99.27%
TOTAL OPERATING:
Revenue/Recoveries (6,838,725) (7,404,375) (4,249,760) (4,750,561) (18,866,083) 39.25%
_Ex eennditures 37,908,093 35,579,187 1 ,870,926 15,942,241 61,732,726 57.63%
Net Operating Expenditures 31,069,368 28,174,812 13,621,166 11,191,680 42,866,643 65.73%
ATTACHMENT "B"
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
Continuity of Taxes Receivable
for the Second Quarter of the Year 2011
March 31,2011 JUNE JUNE
BEGINNING BALANCE INTEREST TAXES PAYMENTS/ 2011 2010
RECEIVABLE ADDED BILLED BALANCE ADJUST.-
CURRENT YEAR
TAXES (4,374,912) 60,099,903 55,724,991 (47,392,561) 8,332,430 7,952,104
PENALTY AND INTEREST 24,291 173,280 197,571 102,229 95,342 107,427
FIRST PRIOR YEAR
TAXES 5,197,002 - 5,197,002 (1,180,507) 4,016,496 4,043,003
PENALTY AND INTEREST 295,824 179,678 475,502 221,623 253,879 325,867
SECOND PRIOR YEAR
TAXES 2,187,135 2,187,135 (673,002) 1,514,133 1,431,828
PENALTY AND INTEREST 190,896 73,990 264,885 151,102 113,783 166,929
THIRD&PRIOR YEARS
TAXES 832,427 832,427 (240,729) 591,699 858,532
PENALTY AND INTEREST 221,125 26,958 248,083 (86,059) 162,0 4 278,087
SUB-TOTAL 4,573,788 426,947 60,099,903 64,879,514 49,961 753 15,079 785 15,163 777
PREPAID TAXES 4,374,912 -
ITOTAL 8,948,700 426,947 1 60,099,903 1 64,879,514 (49,961,753)1 15,079,785 1 15,163,777
Includes refunds,write-offs,357's,etc.
NOTE 1: 2011 Interim Instalment months: February and April
2011 Final Instalment months: June and September for non-capped classes
CORPORATION OF MUNICIPALITY OF CLARINGTON ATTACHMENT"C"
INVESTMENTS OUTSTANDING
As at June 30, 2011
INVESTED I ISSUER OF COST OF INTEREST MATURITY MATURITY
WITH INVESTMENT INVESTMENT RATE DATE AMOUNT
I
GENERALFUND
TOTAL GENERAL FUND
CAPITAL FUND
TOTAL CAPITAL FUND
RESERVE FUND
RBC STEP UP GIC-RBC 945,000.00 2.00% 10-Sep-11 963,900.00
RBC GIC-BMO 2,221,742.00 4.30% 18-Sep-1 1 2,742,301.29
RBC STEP UP GIC-RBC 618,000.00 2.00% 25-Sep-1 1 630,360.00 (A)
RBC STRIP BOND-PROV PQ 776,152.23 4.35% 01-Dec-11 986,467.00
RBC STRIP BOND-PROV ONTARIO 999,999.54 4.20% 02-Dec-11 1,244,090.00
RBC GIC-BMO 1,708,762.00 1.70% 07-Dec-11 1,737,810.95
RBC GIC-RBC 2,000,000.00 1.65% 20-Dec-11 2,033,000.00
9,269,655.77
RBC GIC-RBC 2,000,000.00 4.05% 16-Mar-12 2,439,161.00
RBC GIC-BNS 5,100,000.00 2.00% 01-Oct-12 5,306,040.00
RBC BA-TD 1,471,061.00 4.80% 30-Oct-12 1,859,675.00
RBC STRIP BOND-PROV ONTARIO 699 779.86 2.50% 02-Dec-12 759 557.00
9,270,840.861 1
RBC BA-TD 1 1,503,357.00 4.80% 08-Jan-13 1,900,502.92
RBC GIC-BNS 1,546,695.00 4.50% 12-Feb-13 1,927,463.38
RBC GIC-BNS 599,161.00 4.35% 04-Mar-13 741,320.00
TD GIC-TD 1,009,028.00 4.45% 25-Mar-13 1,254,427.00
TD GIC-TD 257,495.00 4.51% 13-May-1 3 321,039.00
RBC GIC-BNS 1,371,861.00 3.00% 13-Jun-13 1,499,070.00
RBC GIC-BNS 2,060,630.00 3.10% 30-Jul-13 2,328,277.00
RBC GIC-RBC 946,770.00 4.40% 30-Sep-13 1,174,213.00
RBC GIC-RBC 574,200.00 4.30% 15-Oct-13 598,890.60 (B)
RBC GIC-BNS 1,338,742.00 4.15% 16-Dec-13 1,640,564.30
RBC GIC-BMO 2,476,430.00 2.10% 20-Dec-12 2,581,532.17
13,684,369.00 1
RBC GIC-BMO 1,000,000.00 2.75% 09-Mar-14 1,084,790.00
RBC STRIP BOND-PROV ONTARIO 999,807.77 3.35% 02-Dec-14 1 1,191,382.00
RBC GIC-BMO 1,000,000.00 2.60% 08-Dec-14 1,108,857.05 (C)
2,999,807.77
RBC GIC-RBC 1,081,162.00 3.00% 09-Mar-15 1,216,857.00
1,081,162.00
TOTAL INVESTMENTS 36,305,835.40 41,271,547.66
Note that interest on GICs is annual compunding with the exception of the following.
(A) Interest is paid semi-annually
(B) Interest is paid annually
(C) Interest is semi-annual compounding
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ATTACHEMENT"E"
MUNICIPAL DEVELOPMENT CHARGES
MONTH OF JUNE
2011 2010
MUNICIPAL NUMBER MUNICIPAL NUMBER %CHANGE OF
UNIT TYPE DEV. CHARGES PAID OF UNITS DEV. CHARGES PAID OF UNITS DEV.CHGS 2010-2009
Single/Semi- Detached
-New construction $ 876,960.00 61 $ 758,175.00 57
-Additions $ - 0 $ - 0
Townhouse $ 534,702.00 42 $ 228,532.00 19
Apartment $ - 0 $ - 0
Commercial $ 302,485.77 6 $ 28,209.42 2
Agricultural $ - 0 $ - 0
Government $ - 0 $ - 0
Institutional $ - 0 $ - 0
Industrial $ - 1 $ - 0
TOTALI $ 1,714,147.77 110 $ 1,014,916.42 78 68.9%
MUNICIPAL DEVELOPMENT CHARGES
JANUARY TO JUNE-YEAR TO DATE
2011 2010
MUNICIPAL NUMBER MUNICIPAL NUMBER %CHANGE OF
UNIT TYPE DEV. CHARGES PAID OF UNITS DEV. CHARGES PAID OF UNITS DEV.CHGS 2009-2008
Single/Semi- Detached
-New construction $ 3,959,990.00 276 $ 3,515,175.00 260
-Additions $ - 0 $ - 0
Townhouse $ 1,069,404.00 84 $ 685,596.00 57
Apartment $ - 0 $ 133,968.00 12
Commercial $ 515,294.88 9 $ 103,637.87 4
Agricultural $ - 0 $ - 0
Government $ - 0 $ - 0
Institutional $ - 1 $ - 0
Industrial $ - 1 $ - 0
TOTALI $ 5,544,688.88 371 $ 4,438,376.87 333 24.9%