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HomeMy WebLinkAboutFND-023-11 OaFftWfi REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: October 31, 2011 Resolution#: By-law#: Report#: FND-023-11 File#: Subject: FINANCIAL UPDATE AS AT SEPTEMBER 30, 2011 RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report FND-023-11 be received for information. Submitted by: � Reviewed by: ' Nancy Taylor, BA, CA. ranklin Wu, Director of Finance/ Chief Administrative Officer Treasurer NT/CC/hj I CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: FND-023-11 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-018-11 presented previously to Council. 2.0 THIRD 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 September 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 September 30, 2011 total $34,678,756 which represents 91.3% of the year to date budget as of the end of the third quarter. If this was measured against the total net operating budget for the 2011 year the percent of the operating budget expended to September 30th is 80.9%. 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 September 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 Overall, the operating budget is on target. Some of the variances can be attributed to the timing differences in revenue and expenditures between 2010 and 2011. In comparing the third quarter only actual to budget the expenditures are 94.5% of the third quarter budget. When comparing the year to date budget as of September 30th, the expenditures are at 91.3% 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 80.9%, in part due to the annual grants and debentures occurring early in the year. REPORT NO.: FND-023-11 PAGE 3 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 allocation does not reflect the actual allocation. As of September 30th, the net Legal expenditures are 75.0% of the total 2011 budget. 2.5 The Non-Departmental revenues are slightly higher than the third 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. The third quarter year to date figures of 2011 ($1,318,770) is higher than budgeted ($1,200,000 for 2011) but are slightly lower than the 2010 third quarter year to date interest and penalties ($1,323,330). This is a reflection of the improvement in the collection of outstanding taxes. 2.7 The Emergency Services revenue is in line with the September 30th year to date figures. The total year to date expenditures as of September 30th, represent 74.3% of the total 2011 budget. 2.8 The Engineering Department revenue has improved over the third quarter as a result of increased building permit revenue. As of September 30th the building permit revenue exceeded the total 2011 budget by $452,133. The Engineering Department net expenditures year to date as of September 30th are 60.4% of 2011 total budget. 2.9 The Operations Department revenue has improved over the third quarter and as of September 30th the revenue exceeded the September 2011 year to date budgeted revenue. The revenue is on track for the total 2011 budget due to seasonality of sports field rentals. The total net effect is that the net expenditures are still in line with the total 2011 budget amount at 76.3%. 2.10 Community Services year to date expenditures as of September 30th are approximately 93.6% of the 2011 budget as of September 30th. Overall the revenue is on target as of September 30th. While some revenue accounts are lower than budgeted as of September 30th there has been better than budget performance in other revenues to offset the drop. Overall, community services revenues are on track with the budget. The Community Services department net expenditures as of September 30th are 75.7% of the total 2011 budget. REPORT NO.: FND-023-11 PAGE 4 2.11 The Planning Department revenues vary favourably from the third quarter budget. However the timing of the Planning activities are not necessarily seasonal and cannot always be predicted by the previous year's timing. Some of the Planning Department revenues such as site plan revenue and subdivision application fees have exceeded the total 2011 budget amounts. As of September 30th, the Planning department net expenditures year to date are 68.4% of 2011 total budget. 2.12 Attachment "B", Continuity of Taxes Receivable for the nine months ending September 30, 2011 provides the status of the taxes billed and collected by the Municipality of Clarington during the third quarter of 2011. A total of $34,670,713 in final tax bills were issued to property owners in the Municipality during this period. At the end of September, a total of$18,881,230 remains unpaid. The net balance is $791,799 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. While more work is to be done, the 2011 third quarter results reflect the continued success in 2011. 2.13 Attachment "C", Investments Outstanding as of September 30, 2011 provides the status of the Municipality's general, capital and reserve fund investment holdings at the end of the third quarter. The Municipality at September 30, 2011 holds $0 in general fund investments, $0 in capital fund investments and $36,870,960 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 as a result of current economic conditions that are likely to continue for some time. 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 $29,535,077.75 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. The outstanding debt figure has been amended from the second quarter report. This minor amendment ($30,700.16) is due to the timing of the debt payments on the RRC addition. REPORT NO.: FND-023-11 PAGE 5 2.15 Attachment "E", Municipal Development Charges as of September 30, 2011 provides the total Municipal development charges collected of $8,462,526.91. 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 501 units mid-year. 2.16 Comparing the number of units issued in 2011 to 2010 in the third quarter, shows that in 2011 there was an increase of 5.5% in the number of units issued compared to 2010. In comparing the total dollars collected in 2011 to 2010, there was an increase of 34.5% 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. 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 SEPTEMBER 30,2011 2011, 2011; 2011 YTD. Total Third; Total Third: 2011: %of Annual Budget YTD Actual YTD Unexpended Quarter Budget Quarter Actualsl Total Budget':Budget Spent Jan-Sept. Jan-Sept. Jan-Sept:. July-Sept: July-Sept. 05 NON-DEPARTMENTAL ACCOUNTS --Expenditures- _- 201,022. - 201,022 01„ 25,522'. 33,522, 201,022'. 100.0% -_._____ _._- ______.- ___-- _..._.. -._ _... .. Revenues/Recoveries (3,909,012): (5,351,936). 1,442,924: (1,901,420): (3060,344). (9,849,768)1 54.300/a Net Non-Departmental (3,707,990); (5,150,914).. 1,442,924. (1,875,898), (3,026,822):, (9,648,746); 53.4% 10 MAYOR&COUNCIL Net O I'll ce of Mayor&Cou ncil 608,882: 585,141': 23,741: 189,4181 199,671 819,607' 71.4% 13 ADMINISTRATOR'S OFFICE Net Office of OAO 326,474. 336,235 (9,761): 109,280: 112,8124: 442,124: 76.0% 14 LEGAL ADMIN RenveuelRecoveries (148,581) (42,788) (105,793). (37527p (6066): (186,100):, 210% Expenditures 388,502' 294,899- 93,66: 104,1051 522,2641 56.5°°/a Net Legal Administration 239,921'. 252,111: (12,190); 86,604, 98,039 336,164: 78.0% 16 CORPORATE SERVICES Revenue/Recoveries (154,867), (150,840), (4,027) (62,181) (50618):. (170,560)1 88.4% Expenditures 3,032619 3,005,717 26902' 851,862! 1,066,376`. 3,926,849+ 76.5% Net Corporate Services 2,877,752: 2,854,877' 22,875'. 789,681': 1,015,7581 3,756,289,. 76.0% 19 CLERK'S Revenue/Recoveries (441,150) (523,005):. 81855. (158,953)1 (282,658)', (573,000): 91.3% �Expenditures -1,627371:. 1,713738. (86,367)'----506,656! -�- 625,501! 2,198,140i Net Clerks 1,186,221: 1,190,733: (4,512): 347,7034 342,843: 1,625,140! 73.3% 21 FINANCE&UNCLASS.ADMIN . ' Revenue/Recoveries (1,082,806) (1,553,031), 470,225: (383,190)- (510682). (1,467,000): 105.9% Unclassified Admin&Board of Trade 1,642,855 03 1,845 949, (2 ,094): 484,721'. 996,4481 1,889,444: 97.7% __.._... -_— _—__ Operating Expenditures 1,449,431 1,539,789 (90,358)! 445,681. 546,402; 1,952,778 78.9% Total Finance Expenditures 3,092,286: 3,385,738: (293,452): 930,402: 1,542,850, 3,842,222: 88.1% Net Finance . 2,009,480: 1,832,707' 176,773: 547,212'. 1,032,168:. 2,375,222!. 77.2°/% 28 EMERGENCY SERVICES-FIRE Revenue/Recoveries (18,706) (25,900) 7,194. (2,521): (13,877): (35,800)] 72.3% Expenditures 6,625232. 6,681,234 (56002)! 2,008,240 2,515027' 8,998,1731. 74.3% Net Emergency Services 6,606,526; 6,655,334; (48,808). 2,005,719, 2,501,1501 8,962,3731 74.3% 32 ENGINEERING SERVICES Revenue/Recoveries (1,106,693) (1,765,604) 6589111 (24121). (836,528),, (1,309,050); 134.9% Expenditures 3,944,032 3,856,896 87,136,. 664,233: 800,057' 4,769,8541 80.9% Net Engineering Services 2,837,339, 2,091,2921 746,047: (36,471) 3,460,8041 60.4% 36 OPERATIONS.. .. _. Revenue/Recoverles (316,393) (404047) 87,654', (119,033). (275858)1 (426,200):. 94.8% Operating Expenditures 8,853 101 9,139 176 (286,075), 2,485,326 2,800 795 12,204,317' 74.9% _....___. -3,342,383: ..... .._ -1-4-3-.4-6-3,__.-_ Fleet&Debenture Payments 3,848 716 506,333 . (62 246) 4,049,319: 82.5% Total Expenditures 12,701,817'. 12,481,559, 220,258; 2,628,789' 2,738,546 16,253,636;. 76.8% Net Operations Department 12,385,424'. 12,077,5121 307,912.; 2,509,756` 2,462,691', 15,827,4361. 76.3% 42 COMMUNITY SERVICES Revenue/Recoveries (3,130,546: (3,128,457), (2 089): (805,310). (852,387)' -(4,427,080): 70.7% Operating Expenditures 6,501 745 6,103,568 398177:. 1,893,335 2,129,037'. 8,981,321', 68.0% —... _.:.. ._... _ .... Annual Grants&Debenture Payments 3,099,671:. 3,083,286: 16,385: 4,932 0 3,447,969 89.4% Total Expenditures 9,601,416. 9,186,854, 414,5621 1,898,267 2,129,037'. 12,429,290! 73.9% Net Community Services 6,470,870'. 6,058,397': 412,473'. 1,092,967' 1,276,650{ 8,002,210: 75.7% 50 PLAN.SERVICES ' ' Revenue/Recoveries (322,549) (611957) 289,408. (79,322) (248,441):. (421,526); 145.2% Expenditures 2,929 179 2,928,6-7-7 502 74-1,966 706,755: 3,807,949. 76.9% Net Planning Services 2,606,630,. 2,316,720! 289,910'. 662,644, 458,314' 3,386,4241 68.41% BOARDS&AGENCIES Not Board and Extemal Agencies 3,518,319' 3,578,611 (60,292); 10,324'. 82,887' 3,521,596! 101.6% .._..TOTAL OPERATING: Revenue/Recoveries (10,631,303), (13,557,565). 2,926,2621 (3,792,578),. (6,137,459)1 (18,866,083): 71,9% Expenditures 48,597,151 48,236,321' 360,8301 10,689,090 12,657,149: 61,732,7261 78.1% Net Operating Expenditures 37,965,848. 34,678,7561 3,287,092: 6,896,512': 6,519,690 42,866,643'. 80.9% ATTACHMENT "B" CORPORATION OF THE MUNICIPALITY OF CLARINGTON Continuity of Taxes Receivable for the Third Quarter of the Year 2011 June 30,2011 SEPTEMBER SEPTEMBER BEGINNING BALANCE INTEREST TAXES PAYMENTS/ 2011 2010 RECEIVABLE ADDED BILLED BALANCE ADJUST.— CURRENT YEAR TAXES 8,332,430 34,670,713 43,003,143 (29,625,665) 13,377,478 13,417,805 PENALTY AND INTEREST 95,342 83,193 178,534 10,502 189,036 207,258 FIRST PRIOR YEAR - TAXES 4,016,496 4,016,496 (695,110) 3,321,386 3,338,027 PENALTY AND INTEREST 253,879 43,9441 297,823 58,416 239,406 293,108 SECOND PRIOR YEAR TAXES 1,514,133 1,514,133 (515,867) 998,266 1,228,704 PENALTY AND INTEREST 113,783 15,646 129,430 29,917 99,513 152,708 THIRD&PRIOR YEARS TAXES 591,699 591,699 (94,988) 496,711 726,368 PENALTY AND INTEREST 162,024 6,083 168,107 8,672 159,435 309,050 TOTAL 15,079,7851 148,866 34,670,713 49,899,364 31,018,134 18 881,230 19,673,029 Includes refunds,write-offs,357's,etc. NOTE 1: 2011 Interim Instalment months: February and April 2011 Final Instalment months: June and September CORPORATION OF MUNICIPALITY OF CLARINGTON ATTACHMENT"C" INVESTMENTS OUTSTANDING As at September 30,2011 IINVESTED ISSUER OF COST OF INTEREST MATURITY MATURITY wlr ,INVESTMENT INVESTMENT 1 RATE DATE AMOUNT GENERALFUND I TOTAL GENERAL FUND !CAPITAL FUND TOTAL CAPITAL FUND I RESERVE FUND RBC STRIP BOND-PROV PQ 776,152.231 4.35%1 01-Dec-11 1 986,467.001 :;RBC STRIP BOND-PROV ONTARIO 999,999.541 4.20%1 02-Dec-11 i 1,244,090.001 !RBC IGIC-BMO 1,708,762.00 1.70% 07-Dec-11 1,737,810.951 i RBC LGIC-RBC 2,000,000.00 1.65% 20-Dec-11 2,033,000.00 1 ; 5,484,913.771 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 1471,061.00 4.80% 30-Oct-12 1,859,675:00 RBC STRIP BOND-PROV ONTARIO 699 779.861 2.50% 02-Dec-12 759,557.001 ! 9,270,840.861 i I ! RBC BA-TD 1,503,357.001 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 IGIC-TD 1,009,028.00 4.45% 25-Mar-13 1,254,427.00 ITD IGIC-TD 257,495.00 4.51% 13-Ma -13 321,039.00 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 574,200.001 4.30%1 15-Oct-13 598 890..60 (B) RBC GIC-BNS 1,338,742.001 4.15%I 16-Dec-13 1,640,564.30 RBC GIC-BMO 2,476,430.00 2.10% 20-Dec-12 2,581,532.17 13,684,369.00i j RBC GIC-BMO 1,000,000.00 2.75% 09-Mar-14 1,084,790.00 RBC GIC-BMO 983,080.00 1.80% 12-Sep-14 1,037,127.61 Manulife Bankj Manulife GIC 742,599.00 2.05% 19-Sep-14 789 211.47 RBC I STRIP BOND-PROV ONTARIO 999,807.77 3.35%I 02-Dec-14 1,191,382.00 RBC IGIC-BMO 1,000,000.00 2.60% 08-Dec-14 1,013,000.00 (A) 4,726,486.77 RBC GIC-RBC 1,081,162.00! 3.00% 09-Mar-15 1,216,857.00 RBC GIC-BMO ! 624 188.001 2.00% 25-Sep-15 675 641.17 1,705,350.00 Manulife Bank Manulife GIC 2,000,000.00 2.60% 19-Sep-16 21273,876.11 1 2,000,000.001 I I TOTAL INVESTMENTS 36,870,960.401 41,614,985.68,' 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 l,0 l0 ri r1 l0 Lfl r-i lD M w Zt 00 Ln H c-i r-I 61 Ol ri <D d' c-i d' (.0 M 0) r- Ln Ln 1-4 ri (.6 ri d 00 Ol Ol r-� l6 . 14 Z m H H ra N 00 Ln H N 00 r" r- Cr) W H IH 0) t0 cr 00 Ln N H d N r- O 00 Lrj O r- ct Lr) Ln 110 00 ri (. 00 0) Ln O 00 M N Ln 0) 0) 0) �i 0) M d' O M O Z _ r- (0 M � 0) 0) 0) ct 00 r- H rs Ln N V m CD 00 N M ri r- ri N 1 r-i N U CT d' IO M N N 00 Q 07 O O Ln Ln O O Ln O Ln O O O O O O O Ln N N O Ln N Ln r- O O O O O c O) N t-� ri 4 r4 Ln Ln d• Ln O to O O H N LD O r� m 00 M Ln � Ln H O O m a) r, m m H lO N N Co O m r` Ln O O N 0) Lri 06 ri (Y t Lri U cr Co 06 co r` r\ 00 00 00 00 00 00 00 N 0) CO L r) Ln (!7 U ?j =5 H H H H H H r-i r-i r•i r1 N Ql Lri d' O 4- Z Q e-i c-i ri r- (A M U) O N 00 00 00 00 00 00 00 00 d' O O 0) C: rn rn rn rn ` , 1 ; `, rn M O O cy �t cr N O r, Ln d r, 0) O O (D <D O d• 00 r, r` 0) O O O co O N M O d LD Ln H Ln O O O t N N M M d M M M d l0 N Lri 01 O s? i Z 0 0 0 0 0 0 0 Ln 00 r- H LO N ri LO N Z J LO N M U 00 00 00 00 00 00 00 00 00 00 d Cr Ln H O N m LO LD <D C0 (.0 1-0 1,0 LD (0 (.D M H r,, Ln U r, r` re r` r` m 00 r` 0) o 0 0 0 0 0 0 0 0 0 0 Ln N o 00 m a� r\ r` r` r, r, r- r` r� r, r, ro It N 0) r- 0 0 0 0 0 0 0 0 0 0 Ln N 0) N ` Z H H H r-i H r-i H r1 H H H 00 00 LO 1O O 0 pl- U U Z L o0 00 00 00 00 °o o N a a) U I'D r, r� to Ln O O N -Q - Q _] M O a O O 0 O (n Cr' �' Lr•1 r-I lfl r-i N .0 Q .� U O M M m l0 (.0 m N O 2 M O m m r� r` M H Rf LL cI N N N p O J F- C C j O O O '- I— a) Ln Ln O � J N Q a_0i m m °o c C U_ N N O U 0 z C r Q m M M O 00 E U Q =3 i CD Lij Q r N 0 0 O O O = N � j, _U _ N C Ln M 00 O O U L) O L f"° O O �t lzT O O N t� 0 �j O O O rn n O E 3 o (rs N M Ln r\ Ol N 0 _0 O C: ri l0 r� lD L!) 0) +L O o o Q vJ Q m r L O O N c) "I LO CO r- 00 O O + U N �QJ C) C) N C t- N 0 0 0 0 0 0 0 0 0 0 CSI N N N N N N N N N N N � N� � O O O M Q N N N to 3 CL r c •Q c W W O t° O O U j a z z Schedule "E" MUNICIPAL DEVELOPMENT CHARGES MONTH OF SEPT 2011 2010 MUNICIPAL NUMBER MUNICIPAL NUMBER %CHANGE OF UNIT TYPE DEV. CHARGES PAID OF UNITS DEV. CHARGES PAID OF UNITS DEV.CHGS 2011-2010 Single/Semi- Detached -New construction $ 265,940.00 20 $ 438,433.00 31 -Additions $ - 0 $ - 0 Townhouse $ 292,813.00 23 $ - 0 Apartment $ - 0 $ - 0 Commercial $ - 0 $ 5,491.30 1 Agricultural $ - 0 $ - 0 Government $ - 0 $ - 0 Institutional $ - 0 $ - 0 Industrial $ - 0 $ - 0 TOTAL $ 558,75'. 43 $ 443,924.30 32 25.9% MUNICIPAL DEVELOPMENT CHARGES JANUARY TO SEPT-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 2011-2010 Single/Semi Detached -New construction $ 5,263,666.00 367 $ 4,817,586.00 356 -Additions $ - 0 $ - 0 Townhouse $ 1,514,989.00 119 $ 1,214,828.00 101 Apartment $ - 0 $ 133,968.00 12 Commercial $ 622,359.96 11 $ 124,948.13 6 Agricultural $ - 0 $ - 0 Government $ - 0 $ 0 Institutional $ - 1 $ - 0 Industrial $ 1,061,511.95 3 $ - 0 TOTALI $ 8,462,526.91 501 $ 6,291,330.13 475 34.5%