HomeMy WebLinkAboutTR-32-94 d
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: GENERAL PURPOSE & ADMINISTRATION COMMITTEE File# � C>L
Date: June 6, 1994 Res. # i-1 � "
By-Law#
Report#:_ TR-32-94 File#:
Subject:
TRANSFERS TO RESERVE AND RESERVE FUNDS
- YEAR END 1993
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT report TR-32-94 be received;
2 . THAT the transfers to the Reserves/Reserve Funds
identified in TR-32-94 be endorsed;
3 . THAT the above recommendations be approved forthwith.
BACKGROUND & COMMENTS:
1.0 Annual Report
1. 1 With the completion of the 1993 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 1993 budget items which were incomplete at
December 31, 1993 but anticipated to be used in 1994 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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Re PAPEER RER_LE
1HI5 B PNMED CN RECYCEED PAPER
TR-32-94 Page 2
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Q. ;. DETAILS TRANSFER
a) 2900-26-X Professional Fees Reserve, transfer of $ 10,388
/6400-83-X unexpended 1992 Planning completed
project funds to Planning Misc.
Revenue previously approved by Council
through Report TR-50-93.
b) Transfer 1993 unexpended Capital for 3,500
7205-93008-X Williams Mill Road project to General
/2900-17-X Capital Reserve.
c) 7007-X-252 Contribute under budget value for 7,300
/2900-5-X taxes written off to Tax Write Off
Reserve.
d) 2900-17-X General Capital Reserve transfer of 22,385
/1110-163-X 1992 unexpended Economic and Tourism
funds to Reserve Fund for Economic
Development previously approved by
Council in Report TR-50-93 .
e) 7702-X-247 Planning Admin. - Consulting transfer 34,510
/2900-26-X to Professional Fee Reserve.
Re: Bowmanville Central Area Study,
Waterfront Projects, C.A.U.S.E. Study
and Digital Mapping.
f) 7608-3-403 Library unexpended 1993 Capital 50,000
/1110-170-X transfer to Main Library Reserve Fund.
Re: Automated System Upgrade.
g) 7608-3-403 Library unexpended 1993 Capital 5,625
/1110-171-X transfer to Courtice Library Reserve
Fund.
Re: Western Library Branch Books and
Collection Material.
h) 5001-22-X Libraries Development Charge transfer 106,875
/5001-18-X to Courtice Library Reserve Fund.
Re: Western Library Branch Collection
Building and Planning Fees.
(inter fund transfer only from one
Reserve Fund to another) .
i) 7006-X-505 Finance Dept. - Other Equipment and 1,558
7006-X-506 Furniture/Fixtures transfer of 1993
/2900-17-X unexpended Capital to General Capital
Reserve to be used in 1994 for
adjustable keyboard holder and chairs
due to Health and Safety concerns, not
anticipated in 1994 Capital Budget.
TR-32-94 Page 3
FRgM / T( ..., DETAILS TRAN$FER
j ) 7708-X-X L.A.C.A.0 Committee transfer 1, 787
/1101-17-X unexpended 1993 funds towards
reducing L.A.C.A.C. 's loan,
previously approved by Council
through Resolution #C-744-94 .
k) 7710-X-520 Economic and Tourism transfer of 1993 35,000
/1110-163-X unexpended Capital to Economic
Development Reserve Fund.
Re: Landscaping and Floral Garden.
1) 7007-X-231 Unclassified Admin. - Conferences and 7,000
7007-X-233 Staff training to General Capital
/2900-17-X Reserve.
Re: Training programs scheduled
in advance of next year's budget
and staff development program for
1994 .
m) 7009-X-247 Computer Services - Consulting 3,283
/2900-26-X transfer to Professional Fees
Reserve for completion in 1994 of
1993 projects.
n) 7007-1-520 Health and Safety transfer unexpended 5, 608
/2900-17-X 1993 Capital to General Capital
Reserve.
Re: Air Quality testing, personal
protective equipment, exhaust,
ventilation, miscellaneous electrical
and plumbing.
o) 7007-X-238 Unclassified Admin. - Legal matters 24,885
/2900-26-X transfer 1993 unexpended to
Professional Fees Reserve to be
used .towards the legal costs for
the Municipal Administrative Centre
Delay Claim.
p) 2900-17-X General Capital Reserve transfer of 17,049 j
/6400-2-X unexpended funds, Re: conferences
and 1991 outstanding purchase
orders, to General Miscellaneous
Revenue.
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TR-32-94 Page 4
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DETAILS
q) Various As at December 31, 1993, there were a 9,341
Accounts number of items requisitioned but not
/2900-17-X ordered due to staffing constraints and
volume of processing combined with year
end work, but items which were
necessary for ongoing operations.
These items, for the most part have
been processed since year end and are
listed for the information of Members
of Council. The items are identified
on Attachment "B" and reflected on the
1993 General Ledger accounts.
r) 1994 There is an outstanding 1993 invoice 1,300
/1110-163-X for the street lighting maintenance
around the Municipal Administrative
Centre. There are sufficient funds in
the Economic Development Reserve Fund
for the 1993 invoice to be paid from in
the 1994 General Ledger. Any future
costs for street lighting maintenance
around the Municipal Administrative
Centre building will be expensed
through the Town Hall maintenance
accounts.
2 .2 The transfers identified have been reflected in the financial
statements for the year ended December 31, 1993, and the costs have
been captured in the appropriate general ledger accounts.
3.0 1993 Year End Surplus
3. 1 Although the economy was in a recession in 1993, the Municipality
has been fortunate to be able to realize a surplus through revenue
gains in conjunction with close monitoring of all expenditures.
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 is at for the year ended December 31, 1993 .
4
TR-32-94 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 & interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522,000
• Payments in lieu of taxes - Municipal portion over and above
budget revenue by approximately . . . . . . . . . . . . . . . . . . . . . . . . . . 398,000
• Rents, Concessions and miscellaneous revenues of various
Departments higher than anticipated due to increased facilities use
etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,000
• Interest income was significantly lower than budgeted due to
higher outstanding taxes and low interest rates . . . . . . . . . . ( 105,869)
• Reduced provincal grants due to the provinces expenditure control
plan has had a detrimental impact on the surplus . . . . . . . . . (342,657)
Expenditures:
• Underexpenditures in various departments, affecting areas such as
delayed filling of vacant positions in Planning (Plans Examined) ,
Public Works (Labourer & Light Equipment Operator) and Treasury
(maternity leaves, Treasurer allocated between Treasury and
Administrator's office, due to vacancy in Admininstrator's office)
along with a conscientious effort to reduce spending in many
operating accounts throughout all departments in 1993, account for
the balance of the 1993 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 $1,084,000
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. The level of outstanding taxes for the Municipality
of . Clarington is in the middle range in relationship to the area j
municipalities. The 1993 year end increase is 22% over the
outstanding balance of taxes receivable for 1992 . The total
outstanding balance at December 31, 1993 was $7,520, 096 of which
$791,433 was penalty and interest. This is detailed in the
December, 1993 Cash Activity Report, TR-14-94 .
TR-32-94 Page 6
3.5 The completion of the 1993 year end financial statements reveals an
accumulated surplus from current as well as prior years of
approximately $2,411,000 . This surplus has resulted in part from
not having to use the previous year's surplus of approximately
$1,000,000 as identified through the 1992 year end transfers report
TR-50-93 as being available for application to the 1993 budget.
Due to the reasons listed above, which resulted in significant
revenue savings and expenditure reductions amounting to
approximately 1,084,000, this surplus was not used in 1993 in its
entirety and has therefore been rolled over into and included in
surplus available for the 1994 and 1995 mill rate.
3 .5 The surplus is summarized in approximate values as follows with
recommended allocation:
1993 Opening Surplus $2, 327,000
1993 Projected budget use ( 1,000,000)
1993 Revenue realized/expenditures reduced 1,084 ,000
2,411,000
1994 Application to budget mill rate ( 860,000)
1994 Application of garbage surplus (90 ,412)
Available for Application to the 1995 Mill
Rate through the 1995 Budget $1,460,588
4.0 Final Comments
4. 1 The above has been discussed with the external auditors who concur
that the Town reflects a secure cash position for the current and
approaching year.
4.2 A forthwith approval is requested in order that the auditors can
release the financial statements for publication.
Respectfully submitted, and Reviewed by,
recommended for presentation
to Z. Mara=nH.BSc. ,ttee,
M A.M.C.T. , W.H. Stockwell,
Treasurer. Chief Administrative Officer.
MAM/NT/LG/hjl
Attachments
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ATTACHMENT "A"
MUNICIPALITY OF CLARINGTON YEAR: 1993
JOURNAL VOUCHER MDM: DECEMBER
J.E.#:
A/C 7% AMOUNT TO
VENDOR NAME P.O. # DESCRIPTION AMOUNT G.S.T. TOTAL ACCOUNT # BE POSTED
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DAVIS PRINTING 13628 PKG INFRACTION 668.52 0.00 668.52 ; 7225-X-169 668.52
WARD & PATCH 13608 GOLF SHIRTS 251.10 0.00 251.10 1 7606-8-114 251.10
1
SAFETY SUPPLY 13610 FIRST AID SUPPLIES 311.04 0.00 311.04 1 7607-4-299 311.04
GORDON BAKER PROMO 13648 NAME BADGES 401.11 0.00 401.11 1 7602-X-236 401.11
DURHAM PRECISION 13671 CABINET TOP 138.99 0.00 138.99 ; 7029-X-169 138.99
INMAC 13729 KEYBOARD STATION 300.19 0.00 300.19 ; 7602-X-101 300.19
KEN KAN TECH GROUP 13737 MAGNET 1,080.00 0.00 1,080.00 ' 7606-3-172 1,080.00
KEN KAN TECH GROUP 13737 MAGNET
1,080.00 0.00 1,080.00 1 7606-2-173 1,080.00
LIBERTY METAL 13844 REPLACE STAIR TREADS 1,944.00 0.00 1,944.00 ' 7029-X-173 1,944.00
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ELECTRIC TYPEWRITER 1,000.00 0.00 1,000.00 7105-X-520 1,000.00
NORMAN WADE 13617 SCALES 37.84 0.00 37.84 77021-101 37.84
3C COMPUTER 13675 PAPER 158.76 0.00 158.76 77021-205 158.76
TINT MASTER -- TINT DOOR 97.20 0.00 97.20 1 7707-X-172 97.20
TODAY'S BUSINESS 13614 ANTI GLARE SCREEN 188.89 0.00 188.89 72031-101 188.89
SAFETY SUPPLY 13611 FIRST AID SUPPLIES 42.49 0.00 42.49 ; 7202-X-299 42.49
MARK'S WORK 13627 COVERALLS
1,150.98 O.OU 1,150.98 7203-X-70 1,150.98
BROOKWOOD ENGRAVING 13609 DOOR--EDO
27.00 0.00 27.00 1 7710-X-520 27.00
TODAY'S BUSINESS 13715 CABINET 463.32 0.00 463.32 7006-X-506 463.32
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9,341.43 9,341.43 1 9,341.43
2-700-17-X (9,341.43)
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RE: TRSF '93 FUNDS TO GENERAL CAPITAL RESERVE PER Y/E TRSF REPORT.
(ITEMS REQUISITIONED IN '93 BUT ORDERED IN '94 DUE TO LACK OF STAFF & TIMING.)
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