HomeMy WebLinkAboutTR-31-95 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# C r<?0 �U
Date: May 1, 1995 Res. #
By-Law#
Report#:— _Tp,34_95 File#:
Subject: TRANSFERS TO RESERVE AND RESERVE FUNDS
- YEAR END 1994
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Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee recommend
to Council the following:
1. THAT Report TR-31-95 be received;
2. THAT the transfers to the Reserves/Reserve Funds identified in TR-31-95 be
endorsed; and
3. THAT the above recommendations be approved.
BACKGROUND & COMMENTS:
1.0 Annual Report
1.1 With the preparation of the 1994 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 j
2.1 Among the standard year end transfers are the following, made to cover approved 1994 �
budget items which were incomplete at December 31, 1994 but anticipated to be used in
1995 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.
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THIS
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TR-31-95 Page 2
FROM/TO D `x'� LS A.NFR
a) 7702-X-242 / Transfer of unexpended 1994 Planning Legal to $ 34,000.00
2900-26-X Professional Fees Reserve
(Re: OMB and O.P. Issues).
b) 7007-X-238/ Transfer of unexpended 1994 Budget 14,744.00
2900-26-X Re: Legal Matters to Professional Fees Reserve
(To complete outstanding legal issues initiated in
1994).
c) 7007-X-240/ Transfer of unexpended 1994 Budget 11,357.00
2900-26-X Re: Labour Negotiations to Professional Fees
Reserve.
d) 7007-X-245 / Transfer of unexpended 1994 Budget 9,355.00
2900-26-X Re: Employment Equity to Professional Fees
Reserve.
e) 7007-X-248/ Transfer of unexpended 1994 Budget 4,578.00
2900-26-X Re: Professional Fees to Professional Fees Reserve.
f) 7007-1-248 / Transfer of unexpended 1994 Budget 5,000.00
2900-26-X Re: Employee Assistance Program to Professional
Fees Reserve.
g) 7009-X-247 / Transfer of unexpended 1994 Budget 19,643.00
2900-26-X Re: Computer Services Consulting to Professional
Fees Reserve.
h) 7702-X-247 / Transfer of unexpended 1994 Budget 42,000.00
2900-26-X Re: Planning Consulting to Professional Fees
Reserve
(for ongoing consulting issues).
i) 1003-15-X/ Transfer of surplus CNE Day funds to Economic 3,656.54
1110-163-X Development Reserve Fund for 1995 Economic
Development activities (total receipts $29,892.00,
total expenses $26,235.46).
j) 7007-1-520 / Health and Safety transfer of unexpended 1994 4,602.43
2900-17-X Capital to General Capital Reserve
Re: Air brake display board and other items.
k) 7708-X-299/ Transfer of unexpended 1994 LACAC Budget to 162.05
2900-17-X General of
Reserve.
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TR-31-95 Page 3
FROM :.T{J
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DETATI TRANSFER
1) 7605-32281-171 / To transfer unexpended 1994 Budget for 1981 GMC 3,657.24
2900-17-X Van to offset expected expenditures to make this
vehicle operational for the Building Maintenance
Division.
m) 7007-X-298 / Unclassified Administration - Contingency 6,000.00
2900-17-X Transfer to General Capital Reserve
Re: LACAC loan - Bowmanville Inventory
Publication per #C-601-94.
n) 7007-X-298/ Unclassified Administration - Contingency 6,000.00
2900-17-X Transfer to General Capital Reserve
Re: Handi Transit Service per #C-497-94.
o) 7007-X-298 / Unclassified Administration - Contingency 2,000.00
2900-17-X Transfer to General Capital Reserve
Re: Brownsdale Community Centre expenses.
p) 7007-X-233 Unclassified Administration and Computer Services 16,555.00
7009-X-233 / Staff Training to General Capital Reserve
2900-17-X Re: Training programs scheduled in 1995.
q) 7004-X-506 / Transfer unexpended 1994 Administration Capital to 500.00
2900-17-X General Capital Reserve.
r) 7006-X-101 Transfer unexpended 1994 Budget to General 269.80
7006-X-505 / Capital Reserve
2900-17-X Re: Framing and Printer Supplies.
s) 7220-X-169 / Public Works transfer to General Capital Reserve 182.25 j
2900-17-X Re: Key Tags.
t) 7007-X-298 / Transfer unexpended 1994 Budget 67,363.00
2900-1-X Re: Unclassified Administration Contingency to
Working Funds Reserve.
u) 7702-X-242 / Transfer to Waterfront Trail Reserve per PD-8-94 4,790.00
2900-30-X and GPA-33-94
Re: Planning Legal Easement Agreement.
v) 2900-5-X/ Transfer from Tax Write-Off Reserve to cover 1994 4,419.00
7007-X-252 overexpended Unclassified Administration - Taxes
Written Off.
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TR-31-95 Page 4
FOOM ...
w) 7608-3-403 / Transfer 1994 Unexpended Capital Budget to 5,000.00
1110-160-X Library Lot Levies Reserve Fund
x) 5001-18-X/ Library Lot Levy Reserve Fund transfer to Courtice 60,000.00
5001-39-X Library Reserve Fund
Re: Western Library Branch Collection Building and
Planning Fees
(interfund transfer only from one Reserve Fund to
another).
Y) 1110-180-X/ Bowmanville Waterfront Study Reserve Fund transfer 1,740.08
2900-26-X of unexpended funds to Professional Fees Reserve.
z) 7202-1-403 / Public Works - transfer tax levy portion of financing 11,352.87
1110-184-X required to complete Mearns Avenue Capital Project
P.W.4.1.0.5 to Public Works Development Charge
Reserve Fund.
aa) 7202-1-403 / Public Works - transfer tax levy portion of financing 5,345.16
1110-184-X required to complete Prestonvale Road Capital
Project P.W.4.1.4.9.B. to Public Works Development
Charge Reserve Fund.
2.2 The transfers identified have been reflected in the financial statements for the year ended
December 31, 1994, and the costs have been captured in the appropriate general ledger
accounts.
3.0 1994 Year End Surplus
3.1 The Municipality has been fortunate to be able to realize a surplus through revenue gains in
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conjunction with close monitoring of all expenditures during 1994. 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 and
by lower than budgeted tender awards due to a more competitive market in this economy. For
the most part the revenue gains account for the beneficial surplus position that the Corporation j
is at for the year ended December 31, 1994.
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TR-31-95 Page 5
3.2 Revenue:
The major areas contributing to the surplus are as follows:
• Outstanding taxes are higher due to the economy which results in higher penalty and
interest...................................................................................................................$595,900
• Miscellaneous revenues of various Departments higher than anticipated due to better
recoveries.................................................................................................................. 92,100
• Interest income was higher than budgeted due to better collection of outstanding taxes and
higher interest rates, as well as a more proactive cash management strategy......... 265,000
• Higher than anticipated supplementary taxes in 1994 (municipal portion)........ 144,000
Expenditures:
• Underexpenditures in various departments,affecting areas such as delayed filling of vacant
positions in Planning(Plans Examined),Public Works(Labourer&Light Equipment Operator)
along with a conscientious effort to reduce spending in many operating accounts throughout
all departments in 1994, account for the balance of the 1994 year end surplus situation. Other
factors included contracting out for grass cutting and even lower than anticipated tender
awards. The reductions in these expenditures have a spin off effect to other associated
accounts such as benefits, travel, etc.
TOTAL REVENUE OVER EXPENDITURE $1,097,000
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 1994
there was a significant improvement in this area. The 1994 year end increase is 5% over the
outstanding balance of taxes receivable for 1993. This figure was 22% for 1993. The total
outstanding balance at December 31, 1994 was $7,898,755 of which $834,246 was penalty
and interest. This is detailed in the December, 1994 Cash Activity Report, TR-5-95.
3.5 The completion of the 1994 year end financial statements reveals an accumulated surplus from
current as well as prior years of approximately $2,558,000. This surplus has resulted in part
from not having to use the previous year's surplus of approximately $860,000 as identified
through the 1993 year end transfers report TR-32-94 as being available for application to the
1994 budget. Due to the reasons listed above, which resulted in significant revenue savings
and expenditure reductions amounting to approximately$1,097,000,this surplus was not used
in 1994 in its entirety and has therefore been rolled over into and included in surplus
available for the 1995 and 1996 mill rate.
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TR-31-95 _ Page 6
3.5 The surplus is summarized in approximate values as follows with recommended allocation:
1994 Opening Surplus $2,411,000
1994 Projected Budgets (860,000)
1994 Application of Garbage Surplus (96,412)
1994 Revenue Realized / Expenditures
Reduced 1,097,412
2,558,000
1995 Application to Budget Mill Rate (860,000)
1995 Application of Garbage Surplus (27,773)
Available for Application to the 1996 Mill $ 1 670 227)
Rate through the 1996 Budget
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,
arie A. Marano, H.BSc., A.M.C.T., W.H. Stockwell,
Treasurer. Chief Administrative Officer.
MM/NT/hjl
Attachments
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