HomeMy WebLinkAboutTR-39-92 IRE CORPORATION OF THE TOWN OF NEWCASTLE
REPORT
Meeting: GENERAL PURPOSE & ADMINISTRATION COMMITTEE File .# ror C ')
Date: June 1, 1992 Res. #
By-Law# .
Report#: TR-39-92 File : .
Subject:
TRANSFERS TO RESERVE & RESERVE FUNDS
—YEAR END 1991
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-39-92 be received;
2 . That the transfers to the Reserves/Reserve Funds identified
in TR-39-92 be endorsed FORTHWITH.
BACKGROUND & COMMENTS:
1.0 Annual Report
1. 1 With the completion of the 1991 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.
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TR-39-92 Page 2
2 . 0 Transfers
2 . Among the standard year end transfers are the following, made
to cover approved, 1991 budget items which were incomplete
at December 31, 1991 but anticipated to be used in 1992 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.
From / To Details Transfer
a) 7602-X-247 CIS Admin - Consulting $ 68,233
/2900-26-X transfer to Professional Fees Res.
re: Seniors Activity Centre
Feasibility Study
b) 7005-X-247 Clerk's - Consulting 30,934
/2900-26-X transfer to Professional Fees Reserve
re: Municipal Code
c) 2900-5-X Tax Write Off Reserve contribute 30,138
/7007-X-252 over budget value for taxes written
off and approved by Council 1991.
d) 7710-X-299 Tourism/Economic Development-transfer 23,141
/1110-X-163 to Economic Development Reserve Fund
for projects - ie. promotional brochures
and other items etc. as decided on by the j
Economic Development Committee, for
completion in 1992 .
e) 7702-X-247 Planning Admin. - Consulting transfer 36,965
/2900-26-X to Professional Fee Reserve Re: Town
of Newcastle Commercial Hierarchy Study
f) 7702-X-247 Planning Admin. - Consulting transfer 35,000
/1100-183-X to Newcastle Waterfront Study Reserve
Fund.
Re: Newcastle Waterfront Study
g) 7608-3-403 Library unexpended 1991 Capital 176,750
/1110-171-X transfer to Courtice Library Reserve
fund.
Re: Western Library Branch Collection
Building & Planning Fees.
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TR-39-92 Page 3
h) 5001-39-X Libraries Lot Levy transfer to 200,000
/5001-18-X Courtice Library Reserve Fund
Re: Western Library Branch Collection
Building & Planning Fees.
(inter fund transfer only from one
Reserve fund to another)
i) 7007-X-248/ Transfer legal costs all departments 57,612
7006-X-242/ (Finance, Community Services, Public
7103-X-242/ Works, Planning) and Professional Fees
7202-X-242/ to Professional Fee Reserves for contin-
7602-X-242/ uation of matters initiated in 1991. These
7702-X-242/ invoices were in process at December 31,
/2900-26-X 1991, and the funds were being held for
payment and most have been paid by this
report date.
j ) 7708-X-X LACAC Committee transfer to General 2,326
/2900-17-X Capital Reserve.
Re: Heritage Designation plaques
as approved by Council-Report PD-236-91.
k) 7007-X-298 Unclassified Admin. - Contingency 45,500
/2900-17-X transfer to General Capital for
continuation of matters initiated
in 1991. (ie. negotiation outstanding
issues etc . )
1) 7007-X-298 Unclassified Admin. - Contingency 11,000
/2900-26-X transfer to Professional Fee Reserve
Re: Delay Claims Consultant
re: Dineen Const. Ltd. & A.J. Diamond
m) 7612-20-X Tyrone Hall Board Municipal Grant 12,000
/2900-17-X transfer unexpended funds.
Re: Air conditioning unit to General
Capital Reserve. Please refer to
Community Services Dept. letter to
Tyrone Hall Board regarding 1991 j
Municipal Grant - Attachment "A" .
n) Various As at Dec. 31, 1991, there were a 27,890
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 inform-
ation of the Members of Council. They
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are identified on attachment "B" and are
reflected on the 1991 general ledger
accounts .
2 .2 On February 12, 1990, Council approved expenditures from
Account #2900-11-X (Garbage Equipment Reserve) up to $60, 000
towards legal and consulting costs relating to the review of
the landfill proposal. The $60,000 from Garbage Equipment
Reserve has been transferred to Professional Fees Reserve to
be included with costs relating to the landfill proposal.
This transfer is strictly a move from one fund to another
which will keep all costs regarding landfill issues in
one area and will provide a better audit trail.
2 .3 The transfers identified have been reflected in the financial
statements for the year ended December 31, 1991, and the
costs have been captured in the appropriate general ledger
accounts .
3 .0 1991 Year End Surplus
3 . 1 Although the economy was in a recession in 1991, the
Municipality has been fortunate to be able to realize a
surplus through revenue gains and/or expenditure savings.
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 j
that the Corporation is at for the year ended December 31,
1991.
3.2 Revenue:
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The major areas contributing to the surplus are as follows:
• St. Mary's Cement reassessment in November 1991
realized through supplementary assessment for 1991
realty and business taxation over and above the
budget taxation revenue approximately $370,000 of
which the municipal portion would have contributed
approximately . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
• The provincial General Support grant and telephone
revenue resulting in a higher revenue of. . . . . . . . . 51,000
• Ontario Hydro Grant in Lieu was greater than
expected due to the start up of generator two. . . . 366,000
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TR-39-92 Page 5
• Outstanding taxes are higher due to the economy
which results in higher penalty & interest. . . . . . . . 320,000
• Rents, Concessions and miscellaneous revenues
of various Departments higher than anticipated
due to increased facilities use etc . . . . . . . . . . . . . . . 134, 000
• Interest income was significant due to the prior
year's surplus available for investment for the
entire year plus the garbage rebate combined with
the early passage of the budget allowing the reserve
fund contributions to the general fund early in the
year, all invested at higher interest rates than
anticipated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 ,000
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TOTAL $1,300, 000
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Expenditures:
• Underexpenditures in various departments, affecting areas
such as delayed filling of vacant positions in Planning,
Public Works, Treasury (Systems Manager) and Fire
Department (Deputy Chief) along with reduced spending
in staff training and conferences and conventions in
consideration of the economy during 1991 account for the
balance of the 1991 year end surplus situation. The
reductions in these expenditures have a spin off effect to
other associated accounts such as benefits, travel etc.
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 Town of Newcastle is in the middle range in
relationship to the area municipalities. The 1991 year end
increase is 30% over the outstanding balance of taxes
receivable for 1990, although the rate of increase has
actually declined over the past year due in part to the
municipality's aggressive approach to collecting outstanding
taxes . In consideration of this, staff have been careful
to apply only the known surplus in 1992 to the budget.
3 .5 The completion of the 1991 year end financial statements
reveals an accumulated surplus from current as well as
prior years of approximately $2,400,000. This surplus has
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TR-39-92 Page 6
resulted in part from the previous year's surplus of
approximately $700,000 as identified through the 1990 year
end transfers report TR-56-91 as being available for
application to the 1992 Budget. This $700,000 has been
applied to the 1992 budget. The 1991 budget allowed for
almost all of the balance, $1,000,000 of the prior year's
surplus to be applied to 1991 expenditures through the
budget process . However, due to the reasons listed above,
this surplus was not used in 1991 in its entirety and has
therefore been rolled over into the surplus available for
the 1993 mill rate.
3 .6 The 1993 mill rate would potentially have the advantage of
the balance of approximately $1,700,000 ($2,400,000-700,000)
to maintain the 1993 tax impact at a continued reasonable
level.
4 . 0 RECOMMENDED ALLOCATION OF SURPLUS
4 . 1 In light of the current economy many municipalities have not
been able to allocate fund to construction projects and
therefore, the Ministry of Transportation has advised the
Director of Public Works that there is the possibility of
obtaining a connecting link subsidy for the King Street
project of approximately $1. 3 million over 1992/1993
construction year. The municipal contribution required in
order to take advantage of this project is approximately
$250,000 .
4 .2 Staff feel that this funding may not be as available in the
future and that it would be prudent to allocate the municipal
funds to this project.
4. 3 The Region of Durham would be required to perform a portion
of this contract in order for the project to proceed in 1992
and early 1993 . Upon Council 's approval, the Director of
Public Works is prepared to discuss this project with the
Region and bring back a recommendation to Council through
a tender award.
4 .4 The 1992 grant awarded by the Ministry of Transportation is
2% over the 1991 grant allocation which is greater than was
expected during 1992 budget preparation. As a result staff
is recommending that Public Works be authorized to draw on
the surplus funds in order to have sufficient expenditures
to be able to take advantage of the full subsidy available.
this is estimated to be approximately $50,000, and would be
spent in the area of hot mix resurfacing which was reduced
during the 1992 budget preparation.
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TR-39-92 Page 7
4 .5 The Development Charge by-law has resulted in a number of
appeals which, if successful, could result in the municipal-
ity having a liability for levies collected during the
interim. It is therefore recommended that $400,000 be
transferred from the available surplus into the Municipal
Development Charge Reserve Fund entitled Municipal Capital
Works Reserve Fund to be available for the future needs
associated with Development Charges . An information report
dealing with the appeals to the Development Charge By-law
will be forthcoming from the Planning and Development
Department.
4 .6 Summary of Allocation:
• Public Works - connecting Link Project (est. ) $ 250, 000
• Public Works - expenditure' to match subsidy (est. ) 50, 000
• Municipal Capital Works Reserve Fund 400,000
• Available for the 1993 Mill Rate 11000,000
$1,700,000
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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.
A forthwith approval is requested in order that the auditors can
release the financial statements for publication.
Respectfully submitted, Recommended for presentation
to the Committee,
'e arano, H.B.Sc. , AMCT, Lawrence E. Kot a-ff,
Treasurer. Chief Administ ative Officer.
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LG/MAM/pp
Attachments:
ATTACHMENT 'A'
• QU�CaS�Ce
DN: C240 ONTARIO
�s
April 3 1992
P APR
WWN OF NEWCAST11
F_-lNANCF
Mrs. Patty Woodcock, Secretary
Tyrone Community Centre Board
2732 Concession Road 7
Hampton, Ontario
L1C 3K6
Dear Mrs. Woodcock:
SUBJECT: TYRONE COMMUNITY CENTRE
1991 MUNICIPAL GRANT
I am corresponding to you in regards to the above noted subject.
In 1990, the Tyrone Community Centre Board applied for and was
allocated money from the Municipal Grant program for the purpose
of installing air conditioning in the Tyrone Community Centre. The
Council put a condition on the board's use of this grant allocation
which stated that the Town of Newcastle (through the grant) would
match, dollar for dollar, the money raised. by the Tyrone Community
Centre Board for the purpose of installing air conditioning in the
facility to a maximum of $12,000. 00. In other words, the grant
could be used by the Board to pay for 50% of the cost of this
project with the Board being responsible to raise the remaining
portion of the cost. For reasons unknown, this grant allocation
was not accessed and at the end of 1990 the dollars were returned
to the Town of Newcastle.
In 1991, the Tyrone Community Centre Board filed an application for
$14, 000.00 to be allocated in the Municipal Grant allocation. In
its application, the Board stated that .$12, 000. 00 was for
installing air conditioning in the facility and $2, 000. 00 was for
upgrading and maintaining the playground equipment. Council tabled
the grant in order to determine the status of the air 'conditioning
project (ie. was this request for the remaining portion of the
project which would contravene the condition of the 1990 grant) .
The dollars for the playground equipment were released in December
1991 upon the written request of the Board (per Christine Brown) .
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CORPORATION OF THE TOWN
OF NEWCASTLE
40 TEMPERANCE STREET • BOWMANVILLE • ONTARIO • LiC 3A6 • (4 16) 623-3379 FAX 623-4169 HCOYCLEOP'C11
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ATTACHMENT 'A'
2
Since there seems to be some outstanding confusion regarding the
issue of the air conditioning project, we need to review the status
of this. project and the Board's intention to pursue this
initiative. it has been brought to my attention that the
possibility exists for the Town of Newcastle to carry-over the
$12,000.00 requested in the 1991 Municipal Grant. program into 1992.
To do this,. the Board must notify this office in writing (as soon
as possible) of its interest to pursue this potential opportunity.
Should Council agree to this action, there would be three
conditions that the board would have to agree to. First, the grant
would be conditional on the Board raising 500 of the necessary
project cost - the Town would provide the remaining 50% to a
maximum of $12 , 000. 00, through the carry-over of the 1992 grant
allocation. Second, if the Board decides to pursue this project•,
it would have to d'o so within the 1992 calendar year. Finally, if
approved, this project is to be coordinated in cooperation with Mr.
Fred Horvath, Facility Manager. The Board must agree to these.,
conditions, in writing, in order for the Community Services
Department to proceed with the next step of pursuing this
initiative.
Through informal discussions with the former contact for the Board,
Christine Brown, I understand that the installation of the air
conditioning in the Tyrone Community Centre will increase the
opportunities for renting this facility and, thereby, assist in
offsetting the facility's operational expenditures. The community-
Services Department is very interested in assisting the Board in
achieving this goal so your immediate attention and response to
this issue is required.
-Should you have any questions or concerns regarding the contents
of this letter, . please do not hesitate to contact me, 623-3379
extension 285; during normal business hours.
Thank you in advance for your cooperation.
Yours truly,
i4w,
J Z Coke, R.D.M.R.
ecreation Superintendent
JJC:sa
cc: Frederick Horvath, Facility Manager
Joseph P. Caruana, Direct r of Community Services
Marie Marano, Treasurer .
Lori Gordon, Accountant
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ATTACHMENT "B'
DEPT. ALL 1991 O/S ITEMS
P.O.# VENDOR PROJECT/ITEM ACCOUNT # DESCRIPTION TOTAL
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11040 CAMBRIAN COAT TREE 7002-X-506 MAYOR--FURNITURE/FIXTURES 224.25
11123 APPLE BLOSSOM SILK TREE 70021-506 MAYOR--FURNITURE/FIXTURES 215.45
11042 CAMBRIAN BOOKSHELVES 70031-506 COUNCIL--FURNITURE 2,967.00
-- TREASURY DEPARTMENT TYPEWRITER 70061-505 TREASURY--OTHER EQUIP. 1.,570.00
-- UNCLASSIFIED ADMIN. ORIENTATION MANUAL 70071-102 UNCL ADMIN-PHOTOCOPY SUP 5,000.00
-- UNCLASSIFIED ADMIN. ORIENTATION MANUAL 70071-209 UNCL ADMIN--PROMOTION 5,000.00
11104 NEWCASTLE GRAPHICS UNION CONTRACTS 7007-X-205 UNCL ADMIN--PRINTING 789.36
-- UNCLASSIFIED ADMIN. NAME TAGS 7007-X-208 UNCL. ADMIN--PRESENT. SUP 1,200.00
11061 OUTDOOR. OUTFITS PARKAS 70201-70 T.HALL--CLOTHING 110.40
11100 COMPUTERLAND RIBBONS 71022-1-101 F/D--OFFICE SUPP 27.49
11098 STOKES CAP CAP 7102-1-115 F/D--UNIFORMS 47.15
11099 FISHER BADGE 7102-1-115 F/D--UNIFORMS 90.00
1060117 TEXEURO 7102-2-120 F/D--CHEMICAL FOAM 113.73
11112 CDN ASSOC FIRE CHIEFS MANUAL 7102-2-233 F/D--STAFF TRAINING 32.50
-- BUILDING INSPECTION 2 CHAIRS 71031-506 BLDG INSP--FURNITURE 1,530.00
11145 CAMBRIAN BOOKCASE 71031-506 BLDG INSP--FURNITURE 133.40
-- FUHRMAN EQUIP 71051-169 ANIMAL CONTROL--MISC OPER 670.00
11004 RUF N'REDI KENNEL 1105-%-169 ANIMAL CONTROL--MISC OPER 545.10
11010 BELL HANDSFREE MODULE 7202-1-201 ENG/INSP--TELEPHONE 2110.45
11102 CAMBRIAN FOOTREST 7202-X-101 P/W ADMIN--OFFICE SUPP 81.53
11097 RED ELECTRONICS MOD. KITS 7203-X-101 P/W O'HD--OFFICE SUPP 30.00
11095 COMPUTERLAND • CABLES 72031-174 P/W O'HD--R/M OFFICE EQUI 175.84
-- COMMUNITY SERVICES ADMIN. RESOURCE BOOK 76021-103 C/S ADMIN--BOOKS 100.00
11079 BALDWIN SALES WINDBREAKERS 7606-2-70 DSC--CLOTHING 334.88
11016 BROOKLIN BULLETIN PLASTIC LETTERS 7606-3-172 B.ARENA--R/M SUPP 6.21
-- CRYSTALPLEX TEMPERED GLASS 7606-3-172 B.ARENA--RIM SUPP 100.00
11006 DREW CHEMICALS CHEMICALS 7606-3-172 B.ARENA--R/M SUPP 2,152.80
11018 CONTRACT SALES LEVER--DOOR 7606-8-172 MULTI-PUR--R/M SUPP 69.00
-- MULTIPURPOSE FACILITY PLASTIC FLOOR GUARDS 7606-8-172 MULTI-PUR--R/M SUPP 200.00
-- WATERLOO FURNITURE. TABLE LEGS 7606-8-172 MULTI=PUR--RIM SUPP 200.00
11028A SAFETY SUPPLY FIRST AID SUPPLIES 7607-4-299 NFC--MISC 535.61
11144 DICKSON FILE CABINET 77021-101 PLANN--OFFICE SUPP 734.85
-- PLANNING ADMIN. TYPEWRITER 7702 1-101 PLANN-OFFICE SUPP 2,000.00
-- U. OF WATERLOO PUBLICATIONS 71021-103 PLANN--BOOKS 100.00
11033 MOTHERSILL BLDG PERMIT PAMPLET 7702-X-299 PLANN--MISC 342.70
11185 REG SMITH TIC 7707-X-172 TOURIST--R/M SUPP 250.00
TOTAL 27;889.70
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