HomeMy WebLinkAboutTR-36-96 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE >
Meeting: File#
Date: June 17, 1996 Res.
By-Law#
Report#:--T R-36-96— File #:
Subject: '
TRANSFERS TO RESERVE AND RESERVE FUNDS
- YEAR END 1995
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee recommend
to Council the following:
1. THAT Report TR-36-96 be received;
2. THAT the transfers to the Reserves/Reserve Funds identified in TR-36-96 be
endorsed; and
3. THAT the above recommendations be approved.
BACKGROUND & COMMENTS:
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1.0 Annual Report
1.1 With the preparation of the 1995 year end financial statements,there are a number of routine
transfers to Reserves or Reserve Funds that have been approved annually by Council at or
around the time that the year end financial statements are presented to Council. These
transfers are in accordance with Municipal by-laws or policies and practices.
2.0 Transfers
2.1 Among the standard year end transfers are the following, made to cover approved 1995
budget items which were incomplete at December 31, 1995 but anticipated to be used in
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1996 for the purposes they were originally intended. The transfers to Reserves or Reserve
Funds earmark the funds only, and draws on these funds still require adherence to the
Purchasing By-Law, and any projects requiring tenders will be brought to Council for final
approval.
P'APEEgD RECYCLE
701
PG PRNTEDa RECYCLED PAPER
TR-36-96 page- 2 -
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1) 7613-32-X / Transfer unexpended 1995 grant $3,000.00
2900-17-X Re: Clarington Older Adults start-up operating
costs to General Capital Reserve
2) 7006-X-101 / Transfer unexpended 1995 to General Capital 200.00
2900-17-X Reserve
Re: Utility cart for Computer Services Division
for transporting equipment
3) 7007-X-298 / Transfer 1995 funds from Contingency 1,798.20
2900-17-X Re: Drop safe at Rickard Recreation Complex, as
approved forthwith per Report TR-2-96 and
Resolution
#GPA-12-96 to General Capital Reserve
4) 7004-X-505 / Transfer unexpended 1995 Capital budget 1,500.00
2900-17-X Re: Typewriter for Administration to General
Capital Reserve
5) 7007-1-520 / Transfer unexpended 1995 Health & Safety Capital 3,231.58
2900-17-X Budget
Re: Washer and dryer for Animal Control
approved by Resolution # GPA-57-96, Air
Testing at Clarington Fitness Centre, etc. to
General Capital Reserve
6) 5001-22-X / Transfer Development Charge - Library Reserve 225,625.00
5001-18-X Fund to Courtice Library Reserve Fund
Re: Unexpended 1995 Capital for Western
Branch Collection, Phase 3
(interfund transfer only from one Reserve
Fund to another)
7) 5001-22-X / Transfer Development Charge - Library Reserve 376,000.00
5001-18-X Fund to Courtice Library Reserve Fund
Re: Unexpended 1995 Capital for Western
Branch Furnishings
(interfund transfer only from one Reserve
Fund to another)
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TR-36-96 Page - 3 -
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8) 5001-22-X / Transfer Development Charge - Library Reserve 156,820.00
5001-17-X Fund to Courtice Community Complex Reserve Fund
Re: Unexpended 1995 Capital contribution for
construction of Courtice Community Complex
(interfund transfer only from one Reserve
Fund to another)
9) Object 233 / Transfer unexpended 1995 Staff Development 27,733.00
2900-7-X and Budget to GIS Reserve and General Capital Reserve
2900-17-X Re: Training for GIS and other applications
10) 7007-X-298 / Contingency contribution to Administrative 5,331.88
5001-10-X Improvement Reserve Fund
Re: Economic Development/Marketing & Tourism
Office renovations done in 1995 re budget
discussions
11) 7007-X-298 / Transfer portion of unexpended 1995 Contingency 25,000.00
2900-17-X Re: Personnel Issues/Negotiations to General
Capital Reserve
12) 7020-X-70 Transfer 1995 funds for requisitioned items to 349.92
7607-4-114 / General Capital Reserve purchased in 1996
2900-17-X
13) 7710-X-205 / Transfer unexpended 1995 funds spent in 1996 15,097.44
2900-17-X Re: Lifestyle brochure and Visitors's Guide to
General Capital Reserve
14) 7710-X-229 / Transfer unexpended 1995 funds spent in 1996 9,561.00
2900-17-X Re: Computer setup at Tourist Information Centre
to General Capital Reserve
15) 7702-X-247 / Transfer unexpended 1995 Planning Department 34,000.00
2900-7-X Consulting to GIS Reserve
Re: GIS applications/development
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16) 7009-X-502 / Transfer unexpended 1995 Computer Services 22,436.00
2900-7-X Re: Software to GIS Reserve
17) 2900-26-X / Transfer from Professional Fees Reserve to GIS 2,894.00
2900-7-X Reserve
Re: Planning Department 1994 unexpended
digital mapping funds
(interfund transfer only from one Reserve to
another)
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703
TR-36-96 Page 4 -
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18) 7202-X-520 / Transfer unexpended 1995 Capital budget 3,700.00
2900-17-X Re: Jackman Road Bailey Bridge to General
Capital Reserve
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19) 7205-94003-261 / Transfer unexpended 1995 Capital budget 40,000.00
2900-30-X Re: Clarington Waterfront Trail - Toronto Street
Loop to Waterfront Trail Reserve
20) 7603-1-403 / Transfer unexpended 1995 Tax Levy portion of 1,726.48
5001-21-X Capital budget
Re: Avondale Park to Development Charge -
Community Services Reserve Fund
21) 7602-X-506 / Transfer unexpended 1995 Capital budget 425.00
2900-17-X Re: Community Services Administration keyboard
holder to General Capital Reserve
22) 7602-X-505 / Transfer unexpended 1995 Capital budget 3,000.00
2900-17-X Re: Community Services Display Board upgrade
to General Capital Reserve
23) 7702-X-247 / Transfer unexpended 1995 Planning Consulting to 728.72
2900-26-X Professional Fees Reserve
Re: 1996 OMB Hearings
24) 7202-X-403 / Transfer unexpended 1995 Capital budget Tax Levy 171,520.59
5001-36-X portion
Re: King Street Fast Storm Sewer Construction to
Public Works Lot Levy Reserve Fund
25) 5001-18-X / Transfer from Courtice Library Reserve Fund to 200,000.00
5001-39-X Library Lot Levy Reserve Fund
Re: Return of unexpended 1991 Capital budget -
Western Branch Planning Fees and
Collection Materials Phase 1 subsequently
collected per 1992 Development Charges
Policy
(interfund transfer only from one Reserve
Fund to another)
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26) 5001-18-X / Transfer from Courtice Library Reserve Fund to 166,350.00
2900-1-X Working Funds Reserve
Re: Return of original tax levy financing from
1991 Capital budget - Western Branch
Planning Fees and Collection Materials
Phase 1 subsequently collected per 1992
Development Charges Policy
27) 5001-22-X / Transfer from Development Charge Library Reserve 197,600.00
5001-18-X Fund to Courtice Library Reserve Fund
Re: Return of unexpended 1991 Capital budget - !
Western Branch Collection Materials Phase 1
subsequently collected per 1992
Development Charges Policy
(interfund transfer only from one Reserve
Fund to another)
28) 5001-22-X / Transfer from Development Charge Library Reserve 43,075.00
2900-1-X Fund to Working Funds Reserve
Re: Return of original tax levy financing from
1992 Capital budget - Western Branch
Collection Building Phase 2A subsequently
collected per 1992 Development Charges
Policy
29) 5001-22-X / Transfer from Development Charge Library Reserve 60,000.00
5001-18-X Fund to Courtice Library Reserve Fund
Re: Return of unexpended 1992 Capital budget -
Western Branch Collection Building Phase
2A subsequently collected per 1992
Development Charges Policy
(interfund transfer only from one Reserve
Fund to another)
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705
TR-36-96 Page - 6 -
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VETATrSrER::;:::::
30) 5001-21-X Transfer 1995 Capital budget contributions to 2,301,180.00
5001-35-X Courtice Community Complex Reserve Fund from
5001-39-X various Reserve Funds
5001-7-X Re: Construction of Courtice Community Complex
5001-18-X to consolidate funds in one Reserve Fund to
5001-25-X / provide simpler accounting and reporting
5001-17-X mechanism
(interfund transfer only from one Reserve
Fund to another)
31) 2900-26-X / To return unexpended funds previously transferred 25,450.67
6400-2-X to Reserve for projects now completed from
6400-67-X Professional Fees Reserve to General Fund
32) 2900-17-X / To return unexpended funds previously transferred 3,818.32
6400-2-X to Reserve for projects now completed from General
6400-23-X Capital Reserve to General Fund
6400-67-X
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2.2 In 1995, the Municipality received $20,000 for future repairs at Vanstone Mill Bridge from
the Ministry of Transportation through the connecting link revocation agreement. The funds
were deposited in the Roads Contributions Reserve Fund to be used to finance the repairs
at Vanstone Mill Bridge as outlined in the approved Report WD-38-94.
2.3 In the 1994 Year End Transfer to Reserves and Reserve Funds, TR-31-95, $42,000.00 was
transferred from Planning Consulting to Professional Fees Reserve as non specific consulting
fees. In 1996, the non specific consulting fees of $42,000.00 are to be used for the OMB
hearings.
2.4 Funds set aside for Employment Equity of$8,953.30 and the non specific professional fees
of $1,035.00 in the Professional Fees Reserve will be used in 1996 to cover the costs for
Deloitte & Touche study of the Golden Report on the future of the GTA.
2.5 A GIS (Geographic Information System) Reserve was established through the 1996 budget
process and all the prior years approved funds have been transferred to the Reserve in 1995.
The consolidation of the GIS funds will provide a better accounting and audit controls.
2.6 The transfers identified have been reflected in the financial statements for the year ended
December 31, 1995, and the costs have been captured in the appropriate general ledger
accounts.
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706
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TR-36-96 Page - 7 -
3.0 1995 Year End Surplus
3.1 The Municipality has been fortunate to be able to realize a surplus through revenue gains
in conjunction with close monitoring of all expenditures during 1995. These differences can
not be anticipated during the compilation of the budget, primarily because revenue is
predicted more conservatively than expenditures such that if it is not realized, the
Corporation would not be negatively impacted to any great extent. Also in many instances
expenditures are lowered by taking advantage of economies of scale,seasonal efficiencies and
co-operative tendering. For the most part the revenue gains account for the beneficial
surplus position that the Corporation is at for the year ended December 31, 1995.
3.2 The major areas contributing to the surplus are as follows:
Revenue:
• Outstanding taxes from second and prior year remain are high due to the economy
which results in higher penalty and interest (Note: many of these properties will be eligible
fortax sale) ........................................................................................................$557,000
• Increase in grants-in-lieu from Bell Canada, Ontario Hydro and other
enterprises .......................................................................................................... 40,000
• Contribution Reserve Funds to general higher than budgeted due to reallocations of
funding of prior year capital projects............................. 85,000
• Ministry of Agriculture - wolf damage higher than budget...................... 34,000
• Interest income was higher than budgeted due to better collection of outstanding taxes
as well as a more proactive cash management strategy....................................... 174,000
• MTO Grant higher than budget .............................................................. 142,000
Expenditures:
• Underexpenditures in various departments, affecting areas such as delayed filling of
vacant positions in Planning (Building Inspector- Plans Examiner, unused overtime budget
re: Official Plan), Public Works (Labourer & Equipment Operators, OMERS early
retirements, short term vacancy in Director position), Building Services (Maintenance),
Maternity Leaves (Treasury), Economic Development (vacancy in EDO position, contract
Confidential Secretary). The reductions in these expenditures have a spin off effect to other
associatedaccounts such as benefits, travel, etc............................................... $352,715
• Transportation under budget in hardtop and loosetop maintenance and work for
others .............................................................................................................. 71,058
• Unused contingency ............................................................................ 82,000
TOTAL REVENUE OVER EXPENDITURE 961,537,??3
707
TR-36-96 Page - 8 -
3.3 Historically, the budget process has applied only the known surplus to the current budget
year. This is done due to the uncertainty of the surplus value until the year end audit is
complete, combined with the concern not to under levy in any given year which could result
in a deficit such as that which the Town found itself in a number of years ago.
3.4 In addition, due to the current economic climate,many of the surrounding municipalities are
concerned with the level and rate of increase in outstanding taxes receivable which, if not
realized could have a severe impact on the financial position of the Municipality. In 1995
there was a significant improvement in this area. The 1995 year end increase is 0.3% over
the outstanding balance of taxes receivable for 1994. This figure was 5% in 1994 and 22%
for 1993. The total outstanding balance at December 31, 1995 was $7,922,326 of which
$820,693 was penalty and interest. This is detailed in the December, 1995 Cash Activity
Report, TR-12-96.
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3.5 The year end surplus is an accumulation of a number of years surplus and in part from not
having to use the previous year's surplus of approximately $860,000 as identified through
the 1994 year end transfers report TR-31-95 as being available for application to the 1995
budget. Due to the reasons listed above,which resulted in significant revenue increases and
expenditure reductions, the surplus was not used in 1995 in its entirety and has therefore
been rolled over into and included in surplus available for the 1996 and future mill rates.
4.0 Final Comments
The above has been discussed with the external auditors who concur that the Municipality
reflects a secure cash position for the current and approaching year.
Respectfully submitted, Reviewed by,
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Mafi�e A. Marano, H.BSc., A.M.C.T., W.H. Stockwell,
Treasurer. Chief Administrative Officer.
MM/NT/LG/hjl
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