HomeMy WebLinkAboutTR-37-82 60-6 7'
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CORPORATION OF THE TOWN OF NEWCASTLE
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C3A6 TELEPHONE 623-3379
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
HELD JULY 26 , 1982
T R- 3 7-8 2
SUBJECT : BUDGET REVIEW TO JUNE 30 , 1982
RECOMMENDATION :
It is respectfully recommended
1 . . That this report be received , and
2 . That the folIowing real Iocations of the 1982 budget be
made :
(A) That $2 ,000 from the Contingency Account be used for
presentation supplies , receptions and tributes to
accomodate the over expenditure ; and
( B ) The $500 be transferred from Police & Fire Bldg . -
R .M . Supplies - Building 7023- 172-X-7 to Newcastle
Fire Hall R.M . Supplies - Building 7102-172-2-7 ; and
( C ) That $2 ,900 be transferred from Animal Control R.M .
Supplies - Building 7105-172-X-2 to Animal Control
Wages - Permanent Full Time 7105-5-X-5 ; and
( D) That $5 ,000 be transferred from Bridge and Culverts -
Various locations in the following manner ; Wages-
Permanent-Full Time 7204-5-35-5 - $2 , 000 , Miscellaneous-
Operating Supplies 7204- 169-35-7 - $1 ,000 , and Rental
of Vehicles 7204-271-35-2 - $2 ,000 , to Pedwell ' s Culvert ,
Clarke , land Acquistion 7204-500-115-8 ; and
( E) That $19 ,000 be transferred from Sidewalk Maintenance
7204-5-345-3 to Salt Storage Structure 7212-261-150-6 ;
and
( F ) That any overrun in maintenance costs of the Public
Works Depots be accomodated from within the Public
Works Administration budget ; and
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RECOMMENDATION : cont ' d . . . . .
2 . (G ) That the additional $100 ,000 required to provide
funds for Winter Control for the 1982 fiscal year
be provided in the following manner ; and
(H ) That the Director of Public Works closely monitor
the department ' s budget with the view to making such
adjustments as might be required to offset the
Winter Control budget from the following accounts :
( a ) Robinson Drew Road construction - reduce
by $10 , 000 , 7205-5- 151-0 ,
( b ) Design assignment for Scugog Street - cancel
$20 , 000 project until 1983 , when both design
and initial construction would take place ,
7205-508-660-6 ,
( c ) Reduce allocation for road construction
unspecified locations by $40 , 000 , 7205-5-901-3 ,
(d ) Brushing and tree removal reduce by $20 , 000 ,
7207-5-312-3 , and
(e) Ditch maintenance reduce by $10 , 000 , 7207-5-313-1 .
These funds would be transferred to the various Winter
Control accounts under the 7210 function ; and
( I ) That $31 , 100 to meet the benefit costs be drawn from
the following accounts :
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RECOMMENDATION : cont ' d . . . .
2 . ( I ) - cont ' d : . . . .
Department Name Amount Account Number
Mayor ' s Office W. C . B . $ 250 7002-058-x-O
Administration Convention 555 7004-231-x-6
Advertising 195 7004-209-x-4
Clarks Dept. , Animal
Control , By-Law
Enforcement Conventions 760 7005-231-x-3
Miscellaneous 400 7005-299-x-2
Capital 900 7005-506-x-1
Treasury Salaries 800 7006-001-x-9
Office ' s Supplies 1 ,000 7006- 101-x-8
Conventions 600 7006-231-x-1
Advertising 1 , 000 7006-209-x-9
Miscellaneous 200 7006-299-x-0
Fire Department Volunteers Wages ( 350 Newc . -7102-016-3-6
( 350 Orono-7102-016-3-6
( 350 Cour . -7102-016-4-5
( 350 Bow. -7102-016-5-4
Building Inspection Purchase of Services 1 , 200 7103-249-x-6
Planning Department Legal Fees 2 , 000 7702-242-x-2
Public Works Administration 11880)
Various accounts
Overhead 10 , 120) within Public Works
Admin . & Overhead .
Garbage Collection 1 ,600 no reallocation .
Community Services Parks Mtnce . -Capital 5 ,000 7603-504-x-6
Orono Park & Pool - Capital , 600 7607-520-3-3
Bowmanville Arena - Wages 640 7606-005-1- 1
$31 , 100
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2 . (J ) That fuel oil costs in all facilities be monitored
by the Community Services Department and the
anticipated over expenditures be accomodated within
the building maintenance budgets ; and
( K) That snow removal contracts be closely
monitored by the Public Works Department and that
the over expenditures be accomodated within the
building maintenance budgets ; and
( L ) That the remaining budget allocation for Contract
Inspection( $11 ,000`� 7702-242-x-2 be transfered1to
the Clerk ' s Department and to the Treasury Department
i* salary accounts to provide funds for �addi ti onal
F staffing .,
BACKGROUND AND COMMENT :
It is appropriate at this time to make Committee and Council aware
of the areas of concern in the 1982 budget performance to June 30 ,
1982 . Council has been provided with a summarized report of revenue
and expenditure by function to June 30 , 1982 . To that end , the
staff have reviewed each revenue and expenditure budget area
noting only the areas of concern and where funds might be drawn
from in order to meet those concerns . Budget areas to which no
reference have been made are considered by staff to be operating
within the constraints and guidelines of the 1982 budget .
The General Government expendituresare presently shown as 45%
unexpended , but since transfers to reserves are $135 ,000 beyond
budget levels , due to Council resolutions , this percentage
has been understated by 10%. This expenditure area should be in the
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TR-37-82
50% range as of June 30th as its costs are comprised mainly of
salaries , building maintenance and administration supplies .
The following comments are made on various accounts within this
expense classification :
Mayor
Travel expenses and conventions are nearing the 30 percent
unexpended level and should be monitored closely. These costs
may be offset by the expenses of office account which is 97
percent unexpended .
Administrator
Salary expense$ is ahead of budget due to the necessity of
replacing the secretary with a temporary employee , while the full -
time employee is on sick leave . This account may be very close to
budget by year end as the temporary employee ' s rate is somewhat
lower than that of the full -time employee .
Unclassified Administration
Presentation supplies , receptions and tributes are all under
a single budget of $5 , 000 and are 11 percent overexpended at this
time . This results from the purchase of pins and crests which
remain in inventory , at this time.
Write-off of Bad Debts
All write-offs to date have been accommodated within the
provision for bad debts . If further write-offs are made regarding
arena insurance coverage , etc . , this account may be overexpended
by $5 ,000 or $7 ,000 .
. . . . . 6
"< 50
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TR-37-82
Transfers to Reserves
The overexpenditure in this account results from resolutions
approved in Council subsequent to budget approval for the Tyrone
Community Centre and the Baseline Community Centre . These funds
have been provided out of reserves .
Protection to Person and Property which comprises the functions
of the Fire Department , By-Law Enforcement , Building Inspection
and Animal Control is 61% unexpended at June 30 , 1982 . This
percentage results mainly from the fact some projects have not
been undertaken as yet ( purchase of vehicles , building repairs
and lower Volunteer Firemen wage costs to date . )
The following comments are made on various account, with that
expenditure classification :
Fire Department - Newcastle
Repair and maintenance to the building are 3 percent over
budget at this time due to additonal costs to repair the roof and
floor of the firehall . The replacement of the doors is still to
be accomplished . This budget overrun can be accommodated within
the repairs budget for the Bowmanville Hall as these projects are
expected to come in under the budget.
Animal Control
The salary account overrun due to the lack of budget allowance
for the call out time which totals $2 , 700 to date ,can be drawn
from the building maintenace account. The necessary repairs to
that facility are estimated to cost $600. Measures have been
taken to ensure unnecessary emergency calls are not made and the
Clerk has sought the assistance of the Durham Regional Police
in this matter.
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Animal Control - cont ' d. . .
Livestock claims presently stand at 49 percent unexpended
and may exceed the budget if claims continue at this pace . This
is an uncontrollable expense .
Transportation Services is 65 percent unexpended at June 30 , 1982 ,
with the principal reason being the number of Public Works
construction projects which were not undertaken until July. This
expense classification also includes Parking Enforcement and Street
Lighting , neither of which , are cause for concern at this time .
The following comments and options are presented here regarding the
Public Works budget and the accounts which may result in expenditures ,
over the budget amounts :
Bridges and Culverts
The additional costs , ( $5 ,000) from Pedwell ' s culvert
expropriation be drawn from Bridges and Culverts , Various Locations .
Road Maintenance ( loosetop ) Dust Control
This program is almost complete for 1982 and should not
result in an overexpenditure .
Salt Storage Structure - Orono Works Depot
This project has been commenced with an estimated cost of
$98 ,000 which is $19 ,000 more than budgetted , and $15 ,000 more
than the estimate made in early June . The increased costs result
from asphalt costs ( 25 percent higher than estimated) and additional
costs for site preparation .
Cost breakdown : Site preparation (Town ) 10 ,000
Asphalt pad ( contractor) 13 ,000
Salt Structure ( contractor) 75 ,000
$98 , 000
As this is a non-subsidizable item , the additional $19 ,000
should be drawn from the sidewalk maintenance account ( also non-
subsidizable ) .
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TR-37-82
Building Maintenance
This account for the Works Depots is only 31 percent unexpended
at this time and this anticipated budget overrun should be drawn
from the Public Works Administration and Overhead accounts .
Winter Control
The budget of $400 ,000 has been exceeded by $15 ,000 at this
time and results from the unusually harsh winter and the change
in charges for equipment rentals from key-on-time to door-to-door
time. There will be a requirement for a further allocation of
$85 , 000 to meet expenses for the remainder fo the year, resulting
in a $100 ,000 over expenditure . The Director of Public Works
offers the following three alternatives in order to accommodate the
budget overrun :
( i ) Closely monitor the monthly printouts to ensure that
the entire subsidizable portion of the Works Budget
is within the limits prescribed by M . T. C . , thereby
maximizing 50% dollars . Cutbacks in areas where
flexibility exists can make up for the over expend-
iture for snow removal .
( ii ) Allocate additional funds , at 100 percent cost to the
Town , to the Works Department Budget , to cover the
shortfall resulting from extra costs for snow removal .
( iii ) Cancel , or reduce , items such as :
( a ) Robinson/Drew Road reconstruction - reduce by
$10 ,000 .
( b ) Design assignment for Scugog Street - cancel for
$20 ,000 until 1983 .
( c ) Allocation for road reconstruction at unspecified
locations - reduce by $40 ,000.
(d ) Brushing & Tree Removal - reduce by $20 , 000.
(e ) Ditch Maintenance - reduce by $10 , 000.
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Winter Control - cont ' d . . . .
Cancellation or reduction of projects , as listed on page 9 ,
would yeild a saving of $100 ,000 , for the subsidizable portion
of the Works Department Budget.
Of the foregoing , it is not recommended that alternative ( iii ) be
adopted as , if savings result in other areas of the Budget , or
winter storms are not experienced until late-December , the Town
will be scrambling at the eleventh hour to find projects on which
to make expenditures and meet the full M . T. C. Subsidy Allocation .
Alternative ( ii) is not recommended as there are probably not
enough funds available in other areas of the Town ' s Budget to
make up the $100 ,000 required.
Alternative ( i ) and ( iii ) in combination are recomended as it is
felt that reductions in several areas can be made by closely
monitoring subsidizable spending prior to year-end . For instance ,
if winter occurs early , the amount spent on brushing and tree
removal will be reduced due to insufficient time for this activity.
Conversely , if winter does not occur until late-December, the
brushing and tree removal activity can be accelerated.
Culture and Recreation is 54 percent unexpended and appears to
be on target regarding the majority of its programs . Some
revenue areas appear to be performing better than anticipated and
may exceed their budgets by year end .
The only program requiring comment at this time is the
Skating Carnival which was both over expended and under in its
revenue generation .
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TR-37-82
This net impact on the budget is $1,300 overbudget but this can be offset
by the revenue of, the softball program which is $1,100 over budget.
General Comments
There are some budget areas which require adjustments, which have an
effect throughout the entire budget and these items are set out here for
your review.
Employee Benefits:
Employee benefits have been under budgetted due to :-rate changes imposed
by other levels of government and through a calculation error within the budget
itself. The total cost of $31 ,100 to cover Canada Pension, Unemployment
Insurance, O.H. I.P. and life insurance benefits has been accomodated from
within the various departmental budgets by cutting out some discretionary
expenditures such as conventions, capital purchases, advertising, etc.
Fuel Oil :
These costs have been projected to the year end and show a possible
over expenditure of $1,800. If the winter comes early this esitmate may well
be below the actual over expenditure. The present situation has been brought
on by the longer and colder winter season. Staff will be monitoring the cooling
and heating of the buildings in order to control the fuel oil usage.
. . . . .12
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1982 BUDGET REVIEW
�J
Expense Area of Concern - Fuel Oil Costs
115% of 1981
1982 Actual
Actual Expenses - Estimated (Over)/Under
Location Budget to June Oct to Dec. Year End Budget
Town Hall 5,500 3,864 2,308 6,172 (672)
Hampton Hall 3,000 1,669 1,224 2,893 107
Orono Bldgs. 4,000 3,256 1,452 4,708 (708)
Police & Fire 7,200 5,634 1,914 7,548 (348)
Bell Bldg. 1,200 742 227 969 231
Fire Halls
- Newcastle 3,100 2,149 1,501 3,650 (550)
- Orono 2,000 1,404 1,059 2,463 (463)
- Courtice 3,000 2,042 1,023 3,065 (65)
Animal Control 1,400 751 402 1,153 247
Cemeteries 300 225 242 467 (167)
Park Facilities 2,000 1,002 389 1,391 609
Arenas
- Bowmanville 10,800 4,121 2,626 6,747) 2,053
(seem low, adjustment + 2,000)
made)
- Darlington 9,600 8,796 4,093 12,889 (3,288)
- Memorial Park/Pool 950 - 543 543 407
- Fitness Centre 20,000 13,532 5,650 19,182 818
Estimated over budget position (1,789)
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Snow Removal
This service has been the subject of numerous discussions at
committee and presently is over expended. The awarding of the contract
for the 1982-83 season and the winter season we experience prior to the
year end will determine the extent to which this account will be over
expended. Staff have closely monitored this contract in the past and
will continue to do so.
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SNOW REMOVAL
Budget Actual
Town Hall 900 736 )
Orono Bldgs. 700 635 )
Snow Removal
Police & Fire Bldg. 1100 1399 Contracts
Bell Bldg. 700 500 )
Fire Dept.
Newcastle 250 221 )
Separate Contracts
Courtice 350 570 )
4000 4060
This budget is overexpended by Mat this time. This
situation is also reflected in the snow removal budget of
Public Works Department and results from our past winter's
weather.
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Staffing
The final area to be commented upon in this report is that of
additional staffing within two departments. These positions have not
been included in the 1982 budget although they were the subject of
substantial discussion during the 1982 budget process. The departments
requesting additional staffing are the Treasury and Clerk's Departments.
Both positions requested are that of clerk-typists, to assist in the paper
flow of the corporation.
The Treasury Department is in the position of having a centralized
purchasing system coming on stream with insufficient clerical support staff.
In addition, the department itself, requires additional clerical assistance
for typing and filing, etc. This need has arisen, principally, as a result
of Committee' s and Council 's decision to update the corporation's purchasing
system. The clerical staff added to the department in 1981 has helped to
ease the workload within the Treasury Department and has provided some of the
required manpower to replace absent and/or vactioning staff. That clerical
position is not available to assist in the purchasing function as her duties
are now split amongst payroll , accounts payable, tax receipting, filing and
general typing functions. In order to accomodate the clerical needs of the
purchasing function, the Treasurer's secretary has taken on the daily
clerical and typing work; with the Planning Department providing word processing
services to put the by-law and procedures in place. Although this arrangement
can be accomodated in most instances during the summer months, when the 1983
budget process and the year end procedures are commenced the time available
for the purchasing functions clerical workload will be much diminished.
The Clerk's Department has a requirement for clerical assistance particularly
to cover such functions as filing, extra typing, photocopying and agenda
compilation. This need has arisen because the high school has indicated that there
has been a increased demand for the co-op students from the business community.
Therefore, at this time, there is no student who can be assigned to the Town
to fulfil these functions.
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The cost to fund the clerk-typist's position from September to December 1982
is estimated at $4,800 per position. These funds could be drawn from the
Contract Inspection Fees which were provided for additional staffing in
Building Inspections and will not be required.
In conclusion, the staff feel the budget performance is within reasonable levels
and that the recommended amendments will allow the Corporation to remain within
budget. allocations with minimal lowering of service levels.
Respectfully submitted,
Kathryn A. Campbell , C.A. , B.Com. ,
Treasurer.
! :9 f
R82-BP-1
19 07 82
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