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HomeMy WebLinkAboutFSD-017-22Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Audit and Accountability Committee Date of Meeting: April 7, 2022 Report Number: FSD-017-22 Submitted By: Trevor Pinn, Director of Financial Services Reviewed By: Mary -Anne Dempster, CAO By-law Number: File Number: Resolution#: Report Subject: Financial Update as at December 31, 2021 Recommendation: 1. That Report FSD-017-22, and any related delegations or communication items, be received for information. Municipality of Clarington Report FSD-017-22 Report Overview Page 2 The COVID-19 pandemic has had a lasting impact on the Municipality of Clarington. It has changed how we provide services (a strong movement towards online services), work, and live. The Municipality's most significant financial impact has been the reduction of services in Community Services. This continued to affect revenues throughout 2021 as the lock -downs, and public health restrictions impacted our ability to provide services and open facilities. The attached report provides information on the variances by service area with anecdotal commentary where appropriate. 1. Background 1.1 The Budget Policy outlines a requirement for the Treasurer to report to Council quarterly, starting with the second quarter each year. This report fulfills that requirement. 1.2 To improve the usefulness of the information and consistency of format with the annual budget, the quarterly report is attached to this report as Attachment 1. Each department is broken down into sub -department with the expenses grouped like the requirements for financial reporting and the annual budget. 1.3 Where there are key variances, these have been identified and are expanded upon for Committee's, and the public's, information. 1.4 This report is solely for operating expenses. Finance will be reporting separately on the capital budget. The capital budget will be reported semi-annually, once in the fall, which captures the "construction season" to September 30, and once in the late spring, which summarizes the prior year's activities. 2. Impact of COVID-19 2.1 Where appropriate, the impact of COVID-19 has been identified and discussed in Attachment 1. 2.2 Overall, the most significant impact of COVID-19 continues to be felt by the Community Services Department. While we had budgeted for reduced revenues in 2021 compared to 2020, the various waves throughout 2021 and the roadmap to recovery, have reduced the Municipality's ability to run programs and facilities as we had hoped in the 2021 budget. 2.3 The Municipality took steps to provide financial support to taxpayers through flexible payment arrangements for taxes, deferral programs and financial support to businesses Municipality of Clarington Page 3 Report FSD-017-22 (CIP). There does not appear to be significant impairment in our tax receivable, and we have not received requests for assistance outside of the expected levels of request. 2.4 The Municipality has been diligent in applying for and has been successful in receiving grants offered by various organizations for both capital and operating funds. Staff continue to seek out and apply for grant opportunities to benefit our community and its residents. 2.5 The investment market continued to be low throughout 2021 in fixed incomes resulting from the Bank of Canada's decision to keep the bank rate at 0.25%. Starting in 2022, we have seen increased fixed -income rates as the bank rate has increased and the economy continues the recovery stage. 3. Concurrence Not Applicable. 4. Conclusion It is respectfully recommended that the report be received for information Staff Contact: Alexandra Baker, Financial Analyst, 905-623-3379 ext.2623 or abaker@clarington.net. Attachments: Attachment 1 — Financial Update for the Period Ending December 31, 2022 Interested Parties: There are no interested parties to be notified of Council's decision. Financial Update as at December 31,2021 Fl IL • 1 f Financial Update for the period ending December 31, 2021 (unaudited) This report provides an update on the Municipality of Clarington's financial activity through the fourth quarter of 2021. In previous iterations of this report, the financial activity has been presented to compare year to date actuals from the first prior year and current budget to actual analysis. For 2021, year-to-year comparisons are not as relevant as there have been major department reorganizations and impactful COVID-19 effects. This report will continue to provide a financial overview of budget variances as of December 31, 2021, focusing on the variances to the 2021 budget. Essential non- financial functions of the Municipality, such as service level achievements or deficits that have been realized within the reported quarter, a review of COVID-19 impacts and department initiatives will also be identified. COVID-19 Implications The Municipality continues to experience financial impacts from COVID-19. Monitoring access to facilities by requesting proof of vaccination from our patrons continued through the fourth quarter of 2021. The impact on our revenues and expenses are highlighted below for each department. Taxes Receivable/Collected Taxes Receivable as of December 31, 2021, provides the status of the taxes billed and collected by the Municipality during the fourth quarter. A total of $8,935,200 remains unpaid which is on trend for this same quarter in previous years. This unpaid value is 4.46% of the taxes levied in 2021. In December 2020, there were taxes receivable of $9,288,100 which was 4.77% of taxes levied in 2020. The difference from 2020 to 2021 is a favorable reduction of $352,900, or 3.95% less than the previous year and the ratio is 0.31 % lower. The following table outlines the taxes receivable ratio for 2021 and the three previous years: Taxes Receivable $ 8,665,200 74.81 $ 9,383,300 $ 9,288,100 $ 8,935,200 Taxes Levied 179,993,900 187,277,800 194,744,300 200,299,200 Taxes Receivable Ratio % 5.01 % 4.77% 4.46% Grants In March 2021, the 2021 Provincial COVID-19 Recovery Funding for Municipalities program, was made available to Ontario municipalities. The intention of the funds is to help municipalities address their 2021 COVID-19 related operating impacts. Clarington received our first installment in the second quarter of 2021 and the second installment in the fourth quarter. The final payment of the Audit and Accountability Fund Intake 2 were received from The Ministry of Municipal Affairs in the fourth quarter. Funds were received under the Canadian Parks and Recreation Association (CPRA) in the fourth quarter. CPRA are providing funding through the Youth Employment and Skills Strategy (YESS) Program to support job placements for youths. This program funding allows flexibility to the municipality to offer youth placements with a focus on providing development in a broad range of skills, knowledge and experience in parks and recreation. Funding will be announced each year with the program ending December 2023. The installment of the Summer Jobs grant was received in the fourth quarter and is used to subsidize student wages. The funds are received from the Government of Canada, Employment and Social Development branch. This year's grant is higher than 2020's grant by approximately 40% (which had been affected by COVID-19). The 2021 value is in line with the grant's received in years prior to COVID-19. Funds received from OPG will be used to complete the Community Mural. Clarington's mural will be an apple tree with each square of the mural a tile that a different resident will paint. An unveiling ceremony will take place in winter 2022. Development Charges Collected Residential and non-residential development charges collected as of December 31, 2021, was $10,458,700 Residential municipal development charges collected were $10,031,900 compared to $13,526,200 in 2020 for the same time period. The 2020 Development Charges Background Study forecasted that the Municipality would be collecting approximately 1,135 units in total for 2021. Development charges have been collected for 585 units as of December 31, 2021. The development charges collected are lower than those collected in 2020. The Development Charge Study is only an estimated forecast of units. Over the years the estimated units are not always met. The COVID-19 pandemic has had a significant impact on building permits. The pandemic has impacted the building industry significantly with cost and supply of building materials as well as labour shortages. This has affected the number of building permits applications. Staff advise that there are currently 500 residential units, mostly high-rise buildings, applied for and under review. RESIDENTIAL Municipal Number of Municipal Number of Development Units Development Units Charges Paid Charges Paid Single/Semi- Detached -New construction $ 5,438,800 258 $ 6,840,900 378 -Additions 0 0 0 0 Townhouse 4,435,300 287 5,686,900 409 Apartment 157,800 40 998,400 115 TOTAL: $ 10,031,900 585 $ 13,526,200 902 Change in DC paid from prior year: -25.8% Change in DC units from prior year: -35.1 % Municipal Development Municipal Development NON-RESIDENTIAL Charges Paid Charges Paid Commercial -New construction $ 426,800 $ 423,100 -Additions 0 0 Industrial -New construction 0 577,300 -Additions 0 0 Agricultural 0 0 Government 0 0 Institutional 0 0 TOTAL: $ 426,800 $ 1,000,400 Change in DC paid from prior year: -57.3% Municipal Development Charge Incentives A new Development Charges Study was released in 2020 and approved in 2021, and few new incentives were identified to encourage development in Clarington. While the 2015 DC Study outlined incentives mainly for multi -residential, commercial and industrial development, the 2020 Study was expanded to include new detached dwellings, semi-detached dwellings, ancillary structures to a new detached/semi dwelling and Affordable Housing as outlined in the Ontario Community Housing Renewal Strategy. There are no incentives provided to developers in 2021, as of December 31, 2021. Note that discretionary incentives are required to be covered by the Municipality's tax base. All incentives under the 2015 DC Study have since been funded and the required transfers made. Propertype Mid -Rise Residential 2015-2020 $ 413,800 2021 Total $ 413,800.00 Percentage of Total Revitalization, Mixed Use 157,800 157,800 New Detached Dwellings Semi -Detached Dwellings Ancillary Structures for New Detached/Semi Dwelling Affordable Housing Residential $ 571,600.00 $ - $ 571,600.00 37% Medical Exemption 110,700 110,700 Revitalization, Small Business 5,500 5,500 Existing Industrial Development 23,000 23,000 Conversion Residential to Commercial 16,000 16,000 New Industrial Development 755,500 755,500 Revitalization, Mixed Use 72,900 72,900 Non -Residential Totals $ 983,600.00 $ 1,555,200.00 $ - $ - $ 983,600.00 $1,555,200.00 63% 100% Staffing Updates For the period ending December 31, 2021, there were 695 staff (including those on a leave — not COVID related). Prior to COVID-19, there were 809 employees which includes Mayor and Council (7), temporary staff, volunteer firefighters and employees on leave (this does not include Library or Museum). There were two retirements during the fourth quarter. Municipal Operating Revenues and Expenses Overview - Financial Results This financial update report is designed to focus on the (unaudited) overall budget variances for the period ending December 31, 2021. The department summaries indicate the status of the Municipality's operating accounts compared to the approved budget as of December 31, 2021. Seasonal trends impact many of the operations of the Municipality such as ice rentals and winter control. The timing of other activities can fluctuate from year to year, such as legal and planning revenues. To best capture the trends, the budget is allocated on a monthly basis based on the prior year's actual monthly distribution. In cases with no previous history, the monthly allocation is divided equally over the twelve months. Due to timing differences, variations from quarter -to -quarter as well as year-to-year exist and therefore, this statement cannot be used in isolation, nor can it be easily extrapolated to predict the whole year's activities. Each department is responsible for its budget. In order to assist with the management of the budget, the Financial Services Department sends monthly trial balances to each department for regular review. The Summary of Operating Revenues and Expenditures compares the Municipality's budget to actual transactions as of December 31, 2021, reflecting financial activity through the fourth quarter of 2021. The tables below reflect the Municipality's operating budget only and exclude the year-to-date financial activities of the library, museum, and BIA's. Unassigned ($38,202) $ 0 -% Non -Departmental Accounts (77,678,424) (79,044,602) 1.7% Mayor and Council 691,057 810,336 14.7% Office of the CAO 1,653,096 1,755,525 5.8% Legislative Services 4,120,343 4,985,589 17.4% Financial Services 10,528,132 7,325,502 -43.7% Emergency and Fire Services 12,809,146 13,524,026 5.3% Public Works 23,744,603 27,448,416 13.5% Community Services 12,542,281 13,914,614 9.9% Planning and Development Services 1,215,118 4,474,072 72.8% Levies (2) 0 - BIAs 0 0 - Libraries/Museums 3,914,674 3,671,599 -6.6% Culture 221,149 219,366 -0.8% External Agencies 803,557 915,557 12.2% Total Municipality of Clarington ($5,473,472) $ 0 0 Revenue and Expense Categories Revenues and expenses are categorized based on their purpose and similarities. Revenues Levies Estimated taxation, supplementary taxation, and payments -in -lieu of taxation received. These funds are collected on behalf of the Region of Durham, the Province of Ontario or a school board and are remitted to the specific agency. Provincial Grants and Subsidies Grants received from the Province of Ontario for specific functions such as the Ontario Community Infrastructure Fund or specific grant projects. Federal Grants and Subsidies Grants received from the Government of Canada for specific functions such as the Federal Gas Tax Fund or specific grant projects. User Fees Fees for services include facility rentals, cemetery fees, application for planning and building permits, and recreational programming. Licensing and Lease Revenue Licensing fees such as taxi licensing and lease revenues for the long-term lease of municipal facilities and property. Investment Income All investment income earned by the Municipality through its investment holdings, bank account balances and investment in Elexicon. Contributions from Reserves Contributions from reserves and reserve funds for specific purposes, as identified within the budget. This is an internal source of funding and may be originally sourced from taxation, grants or user fees. Other Revenues Any revenue that is not otherwise categorized. Expenses Salaries and Benefits Compensation for all employees such as salaries, wages, benefits, overtime, allowances and statutory benefits. Materials Includes items such as office supplies, salt and sand, gravel, insurance costs, phone costs and other general expenses. Rent and Financial Costs Bank charges, debit and credit card charges, cost of rental equipment and facility rentals for the Municipality. Purchase/Contracted Services Items that are outsourced, such as professional services, winter clearing and IT software as a service. Debt Repayment Interest on debt repayments to external parties Grants and Transfer Payments Grants provided to community groups, external boards and agencies and levies from other organizations. Contributions to Reserves and Reserve Funds Contributions from the general fund for the Municipality's reserves and reserve fund Mayor and Council 100 Mayor Expenditures Salaries, Wages & Benefits $ 239,536 $ 249,108 3.8% Materials & Supplies 16,577 59,341 72.1 % 105 Council Expenditures Salaries, Wages & Benefits 409,963 430,517 4.8% Materials & Supplies 1,426 9,070 84.3% 106 Ward Council Expenditures Materials & Supplies 14,734 38,300 61.5% 107 Regional Council Expenditures Materials & Supplies 8,821 24,000 63.2% Total Mayor and Council $ 691,057 $ 810,336 14.7% Highlights Although there were no items of interest to highlight for the period ending December 31, 2021, it is important to note that these departments are 15% under budget ($119,000). This is attributed to limited travel and conferences with COVID-19 restrictions. There has also been a reduction in spending through most Material and Supplies accounts as there was limited staff in the office. Administration 000 Unassigned Expenditures Materials & Supplies $ 374,731 $ 377,418 0.7% 130 Admin Expenditures Salaries, Wages & Benefits 487,841 562,256 13.2% Materials & Supplies 62,402 56,425 -10.6% Contracted Services 84,368 30,000 -181.2% 170 Communication Revenue User Charges 0 (15,000) 100% Expenditures Salaries, Wages & Benefits 538,477 584,601 7.9% Materials & Supplies 75,545 104,400 27.6% Contracted Services 30,268 55,425 45.4% 385 Environmental Revenue User Charges (136,340) (83,500) -63.3% Expenditures Materials & Supplies 5,273 3,500 -50.7% Contracted Services 130,531 80,000 -63.2% Total Administrator's Office $ 1,653,096 $ 1,755,525 5.8% Highlights Administration Contracted Services is over budget due to the Service Delivery Review. These costs are offset with funding from the Audit and Accountability Fund Intake 2. The Materials and Supplies overage will be corrected with a yearend entry to correct an accounting error in the Miscellaneous Expense Account. Environmental The overages in Materials and Supplies and Contracted Services relate to Port Granby which are offset by the revenues in User Fees. Although, most of these expenses are recoverable, advertising expenses are not per the agreement with Canadian Nuclear Laboratories (CNL). Legislative Services 130 Admin Revenue User Charges $ (119,046) $ (122,800) 3.1 % Expenditures Salaries, Wages & Benefits 881,309 1,008,646 12.6% Materials & Supplies 64,268 86,010 25.3% Contracted Services 12,744 10,800 -18.0% Transfers from RES / RF / CAP Fund 73,500 73,500 0% 160 HR/Payroll Expenditures Salaries, Wages & Benefits 1,569,128 1,437,829 -9.1 % Materials & Supplies 6,976 12,600 44.6% Contracted Services 72,334 82,000 11.8% Rents/Financial Expenses 89,908 140,000 35.8% 165 Health & Safety Expenditures Materials & Supplies 23,044 23,075 0.1 % Contracted Services 0 12,000 100% Transfers from RES / RF / CAP Fund 2,500 2,500 0% 190 Animal Services Revenue User Charges (88,212) (87,800) -0.5% Donations and Contributions from Others (9,731) 0 - Expenditures Salaries, Wages & Benefits 395,096 447,579 11.7% Materials & Supplies 57,167 67,925 15.8% Contracted Services 76,647 59,000 -29.9% Transfers from RES / RF / CAP Fund 10,000 10,000 0% 191 Municipal Law Enforcement Revenue User Charges (16,756) (28,000) 40.2% Fines/Penalties on Interest (15,785) (25,000) 36.9% Expenditures Salaries, Wages & Benefits 860,204 885,842 2.9% Materials & Supplies 13,837 21,000 34.1 % Contracted Services 29,286 54,100 45.9% 192 Parking Enforcement Revenue User Charges (101,899) (80,000) -27.4% Fines/Penalties on Interest (251,885) (250,000) -0.8% Expenditures Salaries, Wages & Benefits 378,098 416,963 9.3% Materials & Supplies 14,379 24,840 42.1 % Contracted Services 9,617 10,000 3.8% Rents/Financial Expenses 9,832 10,000 1.7% Transfers from RES / RF / CAP Fund 353,829 330,000 -7.2% 193 Election Expenditures Contracted Services Transfers from RES / RF / CAP Fund 194 Legislative Services Revenue User Charges Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services 230 Grants Revenue Grants 250 Contributions Revenue Transfer between Funds 326 Cemetery Revenue User Charges Expenditures Materials & Supplies 388 Fleet Expenditures 3,943 4,000 1.4% 125,000 125,000 0% (84,136) I (58,000) I -45.1% 380,012 365,730 -3.9% 30,243 37,800 20.0% 0 75,000 100.0% (28,289) I (22,000) I -28.6% (472,934) I (461,803) I -2.4% (260,474) I (208,100) I -25.2% 0 I 1,800 I 100% Highlights Council Services (Administration) Revenues for Marriage Licences were higher than budgeted at the end of the fourth quarter. Staff note that although revenues are higher than anticipated they are somewhat in line with previous years (excluding 2020 which was significantly impacted by COVID-19 restrictions). HR/Payroll The overage in Salaries, Wages & Benefits is attributed to residual effects of the organizational restructuring, overtime, and vacation payout. Animal Services There has been an increase in online animal license purchases possibly from the need to make purchases remotely through COVID-19 restrictions and the increase in pet ownership. Contracted Services is over budget with increased fees from veterinarian and janitorial services due to COVID-19. The commission expenses increases are linked to the increase in animal license purchases. Parking Enforcement Parking meter revenue has come back up to the levels that were seen pre-COVID-19. Note that for the user fees, fines and penalties collected there is a corresponding transfer to reserve funds. Legislative Services The Planning Department is processing more developments which has created more agreements and thus the revenues flowing through the Plan Agreement Fee account have increased. Cemetery Bondhead Cemetery revenue continues to exceed budget expectations. Staff are unable to pinpoint the cause other than to note that the population is growing in that area and residents tend to purchase plots for pre -need where they live. The burials and internments have increased overall as well. Financial Services and Unclassified Administration 000 Unassigned Revenue Fines/Penalties on Interest 130 Admin Revenue User Charges Fines/Penalties on Interest 140 Internal Audit Expenditures Salaries, Wages & Benefits Materials & Supplies 162 IT Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services Transfers from RES / RF / CAP Fund Reclass: CF (NON-TCA) to GF 210 Finance Admin Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services 211 Unclassified Admin Revenue $ 4,084 $ (225,313) (1,582,533) 153,325 0 1,387,297 8,909 5,892 300,600 680,273 2,892,501 96,003 86,184 (15,000) 127.2% (200,000) -12.7% (1,400,000) -13.0% 154,743 0.9% 300 100.0% 1,497,831 7.4% 8,200 -8.6% 15,000 60.7% 300,600 0% 600,000 -13.4% 3,082,732 6.2% 101,190 5.1% 54,000 -59.6% User Charges (168,565) 0 - Expenditures Materials & Supplies 394,372 705,306 44.1 % Contracted Services 1,198,888 1,285,600 6.7% Rents/Financial Expenses 309,386 205,000 -50.9% Transfers from RES / RF / CAP Fund 5,319,645 930,000 -472.0% 250 Contributions Revenue Transfer between Funds (332,816) (332,816) 0.0% Total Financial Services $ 10,528,132 $ 6,992,686 -50.6% Highlights Unassigned The Fines/Penalties on Interest section of the Unassigned sub -department is sitting with a debit balance at the end 2021. The biggest contributor to this is the reversal of a 2020 duplicate invoice and the related reversal of the finance charges applied in error. This is a one-time occurrence and has now been rectified. IT Services The Materials and Supplies category is over budget at the end of the fourth quarter due to several re -cabling requirements for both the Fire Hall and Town Hall. There were also a few batteries that needed to be replaced in UPS units and the touch screen for the Tax Division was also replaced. Software and Hardware Contract accounts are over budget this year due to additional cloud backup requirements, security suite renewal, additional license requirements for Microsoft and replacement of our anti -virus software. These purchases will provide for more robust disaster recovery options and address increased cyber security concerns Finance Admin The overages in Contracted Services are attributed to a few assessment appeals, dating back to the 2017 taxation year, that were settled in 2021. These appeals are monitored by Michael Steinberg due to the potential revenue loss associated with large Commercial, Industrial and/or Multi -Residential properties. Report FND-007-20 indicated that no new collection action be taken between April 1, 2020, and November 1, 2020, creating a backlog of properties eligible for tax sale. For properties registered at the end of 2020, majority of the legal fees were charged in 2021 due to legislative timelines. These tax sale related fees are 100% recoverable. Unclassified Admin Due to an unsuccessful tax sale in March 2021, Report FSD-029-21 recommended a Notice of Vesting be registered in Clarington's name. This property contained outstanding taxes dating back to 2011, as well as Property Standards costs The 2020 Surplus is included in the Transfers from Reserve and Reserve Funds. This is larger than in previous years as the expenses for the Municipality were below the 2020 budget. Recognized savings through the year contributed to the surplus, even though the Municipality did not recognize the revenue levels that were budgeted. The funding received from the Province of Ontario and the Government of Canada's Safe Restart Program, were recognized as revenue in 2020 and are included in the 2020 surplus. Emergency Services 130 Admin Revenue User Charges $ (360,150) $ (115,000) -213.2% Expenditures Salaries, Wages & Benefits 913,943 958,880 4.7% Materials & Supplies 169,109 234,050 27.7% External Transfers to Others 7,750 10,000 22.5% Transfers from RES / RF / CAP Fund 737,805 637,500 -15.7% 280 Fire Prevention Revenue User Charges (13,863) (44,500) 68.8% Expenditures Salaries, Wages & Benefits 740,056 796,825 7.1 % Materials & Supplies 23,059 45,000 48.8% Contracted Services 7,632 1,000 -663.2% 281 Fire Suppression Expenditures Salaries, Wages & Benefits 8,392,867 8,634,223 2.8% Materials & Supplies 64,294 90,000 28.6% Contracted Services 58,388 80,000 27.0% 282 Fire Training/Technical Support Expenditures Salaries, Wages & Benefits 328,590 364,141 9.8% Materials & Supplies 6,127 6,500 5.7% 283 Fire Communication Expenditures Contracted Services 633,023 623,000 -1.6% 284 Fire Mechanical Expenditures Materials & Supplies 65,749 115,000 42.8% 285 All Stations - P/T Admin Expenditures Salaries, Wages & Benefits 825,996 865,215 4.5% Materials & Supplies 34,873 46,700 25.3% Contracted Services 12,764 6,500 -96.4% 286 Municipal Emergency Measures Revenue User Charges 0 (10,000) 100% Expenditures Materials & Supplies 25,109 26,950 6.8% Contracted Services 0 5,000 100% 287 Mechanical Technical Support Expenditures Salaries, Wages & Benefits 136,025 147,042 7.5% Total Emergency and Fire Services $ 12,809,146 $ 13,524,026 5.3% Highlights Administration User charges include an invoice to OPG for the 2021 annual payment as per the Memorandum of Understanding with the Municipality of Clarington and OPG. Transfers to the Reserve and Reserve Fund category includes the transfers of the Emergency Call revenue to the Reserve Fund. In previous years, this revenue was an unbudgeted item. Fire Prevention An increase in requests for file reviews, property searches, incident reports and burn permit applications has resulted in higher revenues than were seen last year. Contracted Services is awaiting yearend entries to reallocate the overages. Fire Communications The Radio Equipment Rental account looks to be over budget, however there will be an offsetting rebate received from the Region of Durham. All Stations - P/T Admin Cleaning supplies and janitorial services are over budget this year due to COVID-19 cleaning requirements. Public Works 000 Unassigned Revenue User Charges Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services 130 Admin Revenue User Charges Expenditures Salaries, Wages & Benefits Materials & Supplies Contracted Services Debt Services (Principle and Interest paid) Transfers from RES / RF / CAP Fund 250 Contributions Revenue Donations and Contributions from Others Transfer between Funds 324 Street Lighting Revenue $ (109,135) 3,514 75,688 8,360 (524,260) 4,832,665 99,111 36,488 546,623 6,052,612 (5,230) (1,047,300) $ (209,300) 3,000 90,834 1,000 (310,800) 5,286,990 109,050 226,000 546,623 5,723,536 47.9% -17.1% 16.7% -736.0% -68.7% 8.6% 9.1 % 83.9% 0% -5.7% User Charges (4,867) (15,000) 67.6% Expenditures Materials & Supplies 591,704 700,000 15.5% Contracted Services 193,956 280,000 30.7% Debt Services (Principle and Interest paid) 219,670 219,670 0% Transfers from RES / RF / CAP Fund 100,000 100,000 0% 325 Parks Expenditures Salaries, Wages & Benefits 1,346,933 1,193,058 -12.9% Materials & Supplies 686,614 569,600 -20.5% Contracted Services 1,088,724 1,489,760 26.9% Rents/Financial Expenses 122,794 48,000 -155.8% Transfers from RES / RF / CAP Fund 1,151,144 1,157,900 0.6% 326 Cemetery Revenue User Charges (159,600) (143,000) -11.6% Expenditures Salaries, Wages & Benefits 228,016 339,392 32.8% Materials & Supplies 164,885 98,700 -67% Transfers from RES / RF / CAP Fund 55,000 55,000 0% 327 Parking Lots Expenditures Debt Services (Principle and Interest paid) 147,794 0 - 330 Roads & Structures Expenditures Contracted Services 0 12,000 100.0% 334 Safe Roads Expenditures Materials & Supplies 12,549 18,500 32.2% Contracted Services 45,428 50,000 9.1 % 350 Waste Collection Revenue User Charges (73) (22,500) 99.7% Expenditures Materials & Supplies 0 22,500 100.0% 351 Recycling Collection Revenue User Charges (15) (1,500) 99.0% Expenditures Materials & Supplies 0 1,500 100.0% 380 Road Maintenance Revenue User Charges (26,477) (19,500) -35.8% Expenditures Salaries, Wages & Benefits 603,994 624,000 3.2% Materials & Supplies 820,052 942,775 13.0% Contracted Services 521,398 915,200 43.0% 381 Hardtop Maintenance Expenditures Salaries, Wages & Benefits 385,208 463,000 16.8% Materials & Supplies 389,039 520,500 25.3% Contracted Services 161,045 160,000 -0.7% 382 Loosetop Maintenance Expenditures Salaries, Wages & Benefits 66,527 59,500 -11.8% Materials & Supplies 303,644 341,000 11.0% 383 Winter Control Revenue User Charges (10,947) (20,000) 45.3% Expenditures Salaries, Wages & Benefits 770,359 958,600 19.6% Materials & Supplies 1,325,498 2,072,500 36.0% Contracted Services 30,619 0 - 384 Safety Devices Expenditures Salaries, Wages & Benefits 241,677 228,000 -6.0% Materials & Supplies 341,100 397,500 14.2% Contracted Services 51,970 50,000 -3.9% 386 Storm Water Management Expenditures Salaries, Wages & Benefits 14,351 20,000 28.2% Materials & Supplies 8,186 13,000 37.0% Contracted Services 134,112 92,000 -45.8% 387 Regional Roads Expenditures Salaries, Wages & Benefits 4,306 9,000 52.2% Materials & Supplies 17,785 35,000 49.2% 388 Fleet Revenue User Charges (1,290,903) 0 - Expenditures Salaries, Wages & Benefits 624,815 751,228 16.8% Materials & Supplies 1,212,453 109,600 -1006.3% Transfers from RES / RF / CAP Fund 1,085,000 1,085,000 0% Total Public Works $ 23,744,603 $ 27,448,416 13.5% Highlights Unassigned The Full Time Work from Other's account is recoverable meaning the overage under Salaries, Wages and Benefits will be resolved through invoicing. Administration Miscellaneous Revenues for Operations and Engineering were combined this in 2021 due to the departmental reorganization. There were also funds drawn on from a Letter of Credit which will be used to complete abandoned work by a developer. Increased revenues have been seen in Engineer Review and Inspection Fees as the budget is based on an estimate of planned projects. Permit Revenue is double the budget expectation this year due to the Municipal Consent (MC) fees for Bell and Rogers. In 2021, additional fees were charged to each company for fibre -related MCs. These charges were temporary and are not guaranteed in future years. Parks The Materials and Supplies category is over budget due to the agreement with Darlington Soccer to absorb the irrigation expenses for Municipal -owned fields through their COVID-19 financial constraints. Rental expenses in Parks have exceeded the budget due to COVID-19 related needs. Extra portable toilet rentals, servicing and daily cleanings were necessary to facilitate COVID-19 protocols. Cemetery Cemetery revenue overages are attributed to higher than anticipated headstone maintenance and miscellaneous burial fees collected. Materials and Supplies balance is due to the legislative required transfers of Perpetual Care Funds (a portion of cemetery plot sales) to the Cemetery Trust Funds. Road Maintenance Increase participation in Senior Snow clearing is reflective in the higher revenues seen this year. The program increased from 319 participants in the 2019-2020 season to 332 participants in the 2020-2021 season. Safety Devices Accounting entries will be made for yearend to reallocate unexpended prior year funds from the Railway Crossing Maintenance account to offset the overages in Contracted Services. Stormwater Managements (SWM) Accounting entries will be made for yearend to allocate the committed funds for contract CI2021-31. Funding for this contract is split between current year's budget and prior year's carryover. Once these entries are complete the Contracted Services account will not be over budget. Waste and Recycling Collection Both Waste and Recycling Collection bin sales have ceased with COVID-19. Residents can now purchase or replace bins at the Region of Durham Waste Transfer Site on Bowmanville Blvd. Fleet The Fleet Miscellaneous Operating Supply account is rolled up into the Materials and Supplies category making it look like it is over budget however this account's expenses are offset by fleet revenues. Community Services 130 Admin Revenue User Charges $ (31,703) $ (21,500) -47.5% Expenditures Salaries, Wages & Benefits 905,786 928,606 2.5% Materials & Supplies 271,430 62,325 -335.5% Contracted Services 12,447 0 - Transfers from RES / RF / CAP Fund 1,750,269 1,273,700 -37.4% 250 Contributions Revenue Transfer between Funds (1,609,819) (1,592,199) -1.1 % 420 Recreation Services Admin Revenue User Charges (121) (1,230) 90.2% Expenditures Salaries, Wages & Benefits 1,099,139 993,041 -10.7% Materials & Supplies 11,788 19,400 39.2% 421 Facilities Revenue User Charges (1,143,540) (1,969,479) 41.9% Expenditures Salaries, Wages & Benefits 3,751,374 4,342,760 13.6% Materials & Supplies 2,618,312 3,152,495 16.9% Contracted Services 229,552 317,107 27.6% Debt Services (Principle and Interest paid) 1,514,261 1,514,261 0% Transfers from RES / RF / CAP Fund 1,144,050 1,144,050 0% 423 Concessions Revenue User Charges (1,239) (34,990) 96.5% Expenditures Salaries, Wages & Benefits 8 0 - 424 Aquatic Programs Revenue User Charges (275,596) (776,373) 64.5% Expenditures Salaries, Wages & Benefits 277,155 705,749 60.7% Materials & Supplies 20,138 53,889 62.6% 425 Fitness Programs Revenue User Charges (75,474) (436,454) 82.7% Expenditures Salaries, Wages & Benefits 136,957 305,547 55.2% Materials & Supplies 5,849 27,850 79.0% 426 Recreation Programs Revenue User Charges (140,232) (309,085) 54.6% Expenditures Salaries, Wages & Benefits 132,335 284,029 53.4% Materials & Supplies 8,953 37,580 76.2% Contracted Services 3,271 23,500 86.1 % Rents/Financial Expenses 0 1,000 100.0% 427 Community Development Revenue User Charges (131,700) (164,650) 20.0% Expenditures Salaries, Wages & Benefits 56,285 76,209 26.1 % Materials & Supplies 139,091 182,330 23.7% Contracted Services 28,008 43,000 34.9% 428 55+ Active Adults Revenue User Charges (27,027) (122,347) 77.9% Expenditures Salaries, Wages & Benefits 30,480 102,242 70.2% Materials & Supplies 2,832 12,600 77.5% Contracted Services 0 5,500 100.0% 429 Customer Service Revenue User Charges (17,479) (16,500) -5.9% Expenditures Salaries, Wages & Benefits 699,324 921,464 24.1 % Materials & Supplies 56,184 93,146 39.7% 430 Smallboards - Consolidated Expenditures Contracted Services 1,192 0 - External Transfers to Others 8,975 0 - 431 Smallboards - Non -Consolidated Expenditures Contracted Services 1,374 0 - External Transfers to Others 9,412 0 - 440 Libraries Expenditures Materials & Supplies 3,319 4,100 19.0% Contracted Services 3,943 6,915 43.0% Debt Services (Principle and Interest paid) 78,466 78,466 0% 450 Client Services Expenditures Salaries, Wages & Benefits 532,037 585,699 9.2% Materials & Supplies 9,360 17,650 47.0% 451 Tourism Expenditures Salaries, Wages & Benefits 230,085 235,262 2.2% Materials & Supplies 49,556 66,500 25.5% Contracted Services 26,607 24,250 -9.7% 460 Museum Expenditures Materials & Supplies 13,809 18,700 26.2% Contracted Services 8,378 7,300 -14.8% 473 Community Grant Program Expenditures External Transfers to Others 38,500 64,000 39.8% 480 Municipal Sponsorships Expenditures External Transfers to Others 75,920 35,000 -117% Total Community Services $12,542,281 $12,322,415 -1.8% Highlights Administration COVID-19 cost recovery funds were received from the Region of Durham for the use of the Garnet B. Rickard Centre as a vaccination clinic. The large overage in Material and Supplies is due to the (unbudgeted) use of Defron Security to provide proof of vaccination and active screening services for COVID-19 at municipal buildings and community halls. COVID-19 recovery funding will be used to cover these costs The unbudgeted expense in Contracted Services relates to Council's direction through GG-336-21, that Staff create conceptual plans for an expanded recreation facility at Garnet B. Rickard. Architect services were acquired to fulfill this request. The council resolution specified that the funds would come from the Community Services Capital Reserve Fund. The remaining costs in the consulting account are awaiting yearend entries for reallocation to the appropriate accounts. Facilities, Aquatic Programs and Recreation and Fitness Revenues across these subdepartments are below budget expectations as the 2021 Budget was developed not anticipating the level of restrictions that remained in place for the majority of 2021. During the fourth quarter, facilities were able to re -open with a few programs and activities running. Although COVID restrictions limited capacity resulting in a direct impact on revenues, Staff were diligent in controlling expenditures where possible to mitigate the impact on the budget. Customer Service The recreation subsidy from the Region of Durham was received in the fourth quarter of 2021. This will be used to assist eligible residents with registration fees to Clarington programs. Tourism The over expenditure in Contracted Services is as a result of the wall wraps completed in the facilities to create Tourism Hubs. Funding received this year from the TIAO grant will be used to offset these expenses. Museum Unforeseen maintenance was required in the fourth quarter of 2021, causing the overage in Contracted Services Community Services Revenue Summary The following table summarizes the revenue sources for Community Services over the last three years. The COVID-19 pandemic has affected Community Services the greatest. The following table shows the decrease in revenue; however, it should be noted that the Municipality has taken steps to mitigate the lost revenue with corresponding reductions in costs where available. Admin ($78,426) ($14,358) ($31,703) ($21,500) Contributions 0 (1,616,352) (1,609,819) (1,592,199) Recreation Services Admin (2,893) (210) (121) (1,230) Facilities (2,259,033) (1,267,112) (1,143,540) (1,969,479) Concessions (43,206) (7,704) (1,239) (34,990) Aquatic Programs (1,171,739) (354,374) (275,596) (776,373) Fitness Programs (515,987) (197,416) (75,474) (436,454) Recreation Programs (550,463) (99,986) (140,232) (309,085) Community Development (153,316) (133,820) (131,700) (164,650) 55+ Active Adults (127,296) (52,189) (27,027) (122,347) Customer Service (16,268) (22,439) (17,479) (16,500) Total Community Services ($4,918,627) ($3,765,960) $(3,453,930) $(5,444,807) Planning Services 000 Unassigned Expenditures Salaries, Wages & Benefits $ 3,918 $ 4,221 7.2% Materials & Supplies 16,320 234,750 93.0% Transfers from RES / RF / CAP Fund 640,375 640,375 0% 130 Admin Revenue User Charges (1,377,470) (1,114,991) -23.5% Other Income - Sale of Assets (NON-TCA) (280,000) 0 - Expenditures Salaries, Wages & Benefits 3,196,202 3,632,851 12.0% Materials & Supplies 72,973 109,550 33.4% Contracted Services 82,595 946,000 91.3% Transfers from RES / RF / CAP Fund 394,699 12,500 -3057.6% 250 Contributions Revenue Transfer between Funds (13,822) (1,000) -1282% 321 Building Inspection Revenue User Charges (3,039,122) (1,769,500) -71.8% Fines/Penalties on Interest 0 (500) 100.0% Expenditures Salaries, Wages & Benefits 1,242,715 1,249,151 0.5% Materials & Supplies 59,819 101,215 40.9% Contracted Services 56,009 199,000 71.9% Transfers from RES / RF / CAP Fund 227,950 227,950 0% 385 Environmental Revenue User Charges (1,170) 0 - 430 Smallboards- Consolidated Expenditures Materials & Supplies 60 1,500 96.0% 502 Development Review Revenue User Charges (288,666) 0 - Expenditures Materials & Supplies 23,298 0 - Contracted Services 198,435 0 - Total Planning and Development Services $ 1,215,118 $ 4,473,072 72.8% Highlights Administration Revenues are higher than the budget at the end of the fourth quarter due to several factors. Some of which include but are not limited to; increased volume and scale of applications of various types of housing builds, increase in land division applications and increases in Compliance Letter volume due to increase in residential sales/closings. The proceeds from the sale of land were reallocated to the Municipal Acquisition Reserve. This is where all proceeds from land sales are recorded. Funds received for a building at Camp 30 were transferred to the General Municipal Purpose Reserve Fund. These funds are to be used for security and maintenance at Camp 30 per the legal agreement and Council's approval. Building Inspection The Building Permit revenue is trending higher this year than expected. Staff attribute this to residents building and renovating due to COVID-19 while staying home as this revenue is market dictated. However, in the fourth quarter there were permit applications for three large condo projects which increased the revenues significantly from those seen in the third quarter.