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HomeMy WebLinkAboutTR-46-01 .. , THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: General Purpose and Administration Committee File #: h-n Res.#: CP/1- '10 ?-rJ / Date: June 18, 2001 Report #: TR-46-01 File #: By-Law #: Subject: TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 2000 Recommendations: It is respectfully recommended the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-46-01 be received; 2. THAT the transfers to the ReserveslReserve Funds identified in TR-46-01 be approved; 3. THAT interest payable of $30,000 to Royal Bank Group be drawn from the Working Funds 1 Rate Stabilization Reserve for interest compensation of the letters of credit drawn down in previous years, Re: subdivision agreement default; and 4. THAT all new subdivision agreements have a clause inserted stating that no interest shall be paid by the Municipality on any deposits held in order to provide an incentive for completion of works and as an inducement for the Developers not to default, FORTHWITH. Background & Comments: 1.0 Annual ReDort 1.1 With the preparation of the 2000 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. 932 " Report TR-46-01 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 2000 Page 2 , 2.0 Transfers 2.1 Among the following are standard year end transfers, made to cover approved 2000 budget items which were incomplete at December 31, 2000 but anticipated to be used in 2001 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. In addition, many of the items have been purchased or projects completed at the time of writing this report, but are recorded here because they were outstanding over the year end. FromlTo Details Transfer 1. 7005-X-4051 Transfer the unexpended tax levy of the 2000 $3,500.00 2900-17-X Capital Clerks Equipment to General Capital Reserve to be used for purchases in 2001. 2. 7007-X-4051 Transfer unexpended tax levy of the 2000 Capital $ 24,897.68 2900-17 -X Budget for Leases to General Capital Reserve for purchase of furniturel fixtures and unanticipated capital proiects includino eraonomic issues. 3. 7007 -X-4051 Transfer the unexpended tax levy of the 2000 $4,589.61 2900-17-X Capital Treasury equipment to General Capital Reserve to be used for purchases in 2001. 4. 7007 -X-405 1 Transfer the unexpended tax levy of the 2000 $4,956.46 2900-17-X Capital Unclassified Administration various departments equipment to General Capital Reserve to be used for purchases in 2001. 5. 7009-X-4051 Transfer unexpended tax levy of the 2000 Capital $404,880.72 2900-24-X Computer Services software and hardware, re: budget for future financial system replacement plus budgeted requirements, to be completed in 2001 to the Computer Equipment Reserve. 6. 7029-X-405 1 Transfer the unexpended tax levy of the 2000 $212,396.41 2900-17-X Capital Facilities for various locations to General Capital Reserve to be used in 2001 to complete proiects. 7. 7102-1-4051 Transfer the unexpended tax levy of the 2000 $44,479.80 2900-14-X Capital Fire Equipment to Fire Equipment Reserve to be used for purchases in 2001. 8. 7105-X-4051 Transfer the unexpended tax levy of the 2000 $6,443.23 2900-17-X Capital Animal Services Equipment to General Capital Reserve to be used for purchases in 2001. 9. 7202-X-405 1 Transfer the unexpended tax levy of incomplete $528,426.82 2900-17-X 2000 Capital Public Works projects to be com- pleted in 2001 to General Capital Reserve (ie. Road Resurfacing, Centre St., Werryl Vannest Rd., lakeshore Rd., Sidewalk Replacement, Culvert Improvements and Unspecified Construction, Pre- engineering and Pavement Rehabilitation.The 2000 unexpended funds from Pavement Rehab- ilitation be used for the 2001 Pavement Rehabilitation. 933 " Report TR-46-01 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 2000 Page 3 FromlTo Details Transfer 10. 7202-X-405 1 Transfer the unexpended tax levy of incomplete $5,950.00 2900-17 -X 2000 Capital Street Lighting for unspecified locations to General Capital Reserve to be used in 2001. 11. 7202-X-405 1 Transfer the unexpended tax levy of the 2000 $5,000.00 2900-17-X Capital Public Works Scanning of Engineering and Parks Drawings to General Capital Reserve to be used in 2001 to complete proiect. 12. 7202-X-405 1 Transfer the unexpended tax levy of the 2000 $1,206.75 2900-17-X Capital Public Works Equipment to the General Capital Reserve to be used for purchases in 2001. 13. 7202-X-4051 Transfer the unexpended tax levy of the 2000 $15,000.00 2900-17-X Capital Public Works Cemeteries to the General Capital Reserve for the removal of the Bowmanville Cemetery mausoleum and landscaping to be completed in 2001. 14. 7402-X-4051 Transfer the unexpended tax levy of the 2000 $35,000.00 2900-17-X Capital Public Works Cemeteries to the General Capital Reserve for the purchase and installation of cremation niche units at the Bowmanville Cemetery to be completed in 2001. 15. 7602-X-405 1 Transfer the unexpended tax levy of the 2000 $9,615.19 2900-17-X Capital RRC, CFC and CCC Equipment to General Capital Reserve to be used for purchases in 2001. 16. 7602-X-405 1 Transfer the unexpended tax levy of the 2000 $17,046.88 2900-26-X Capital CCC for Design Fees of the Expansion of the Fitness Centre Component to Professional Fees Reserve to be used in 2001 to complete proiect. 17. 7603-1-405 1 Transfer the unexpended tax levy of the 2000 $3,616.59 2900-17-X Capital Public Works Parks to the General Capital Reserve for Unspecified fencing to be completed in 2001. 18. 7603-1-4051 Transfer the unexpended tax levy of the 2000 $43,317.35 2900-1-X Capital Public Works Parks to the Working Funds 1 Rate Stabilization Reserve for CSA park equipment improvements to be completed in 2001. 19. 7710-X-4051 Transfer the unexpended tax levy of the 2000 $18,500.00 2900-17-X Capital Marketing and Tourism for equipment and banners to General Capital Reserve to be used in 2001. 20. 7007 -X-403 1 Transfer part of the 2000 surplus to the Debt $350,000.00 5001-34-X Retirement Reserve Fund to offset future debenture repavments. 21. 7609-3-403 1 Transfer the unexpended tax levy of the 2000 $9,615.44 5001-82-X Capital Bowmanville Museum projects to the Bowmanville Museum Reserve Fund to be used in 2001 to complete projects. 934 Report TR-46-01 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 2000 Page 4 FromlTo Details Transfer 22. 7402-X-4031 Transfer the expended 2000 Cemetery $10,000.00 5001-39-X Maintenance - BowmanvillelBondhead budget to Cemeteries Caoital Reserve Fund. 23. 7007 -X-403 I Transfer part of the 2000 surplus to the Municipal $294,217.00 5001-25-X Capital Works Reserve Fund for future years financial needs. 24. Various Transfer 2000 funds to General Capital Reserve for $98,783.94 Departments I items requisitioned in 2000 but received in 2001. 2900-17-X 25. Object 233 Staff Transfer the unexpended 2000 Staff Development $33,470.62 Development I Budget to General Capital Reserve for training in 2900-17-X 2001. (Re: computer training, etc. - all departments). 26. Various Transfer the unexpended 2000 Legal budget to $60,235.33 Departments I Professional Fees Reserve 2900-26-X 27. 7005-X-247 I Transfer the unexpended 2000 Clerks Consulting $5,000.00 2900-6-X to Records Maintenance Reserve. 28. 7009-X-247 Transfer the unexpended 2000 Consulting and $24,707.64 7009-X-259 I Software Application Development for computer 2900-24-X services to Computer Eauipment Finance Reserve. 29 7602-X-247 I Transfer the unexpended 2000 Community $38,072.87 2900-26-X Services Consulting to Professional Fees Reserve to complete 2000 projects (ie. Recreation Master Plan). 30. 7702-X-247 I Transfer the unexpended 2000 Planning $4,214.55 2900-26-X Consultina budaet to Professional Fees Reserve. 31. 7702-X-65I Transfer the unexpended 2000 Planning Contract $5,330.40 2900-26-X Consulting budget to Professional Fees Reserve to be used for the Architectural Review of the Zoning By-Law. 32. 7007 -X-298 I Transfer a portion of the unexpended 2000 $9,312.70 2900-17-X Contingency budget to General Capital Reserve to be used for furniture and equipment purchases for the Kendal Community Centre, as approved in Reoort TR-67-00. 33. 7007-X-298I Transfer a portion of the unexpended 2000 $161,464.50 2900-1-X Contingency budget to Working Funds IRate Stabilization Reserve. 34. 7102-12-2991 Transfer the unexpended 2000 MOC $1,000.00 2900-17-X miscellaneous budget to General Capital Reserve to be used for purchases of miscellaneous supplies in 2001. 35. 7613-99-X Transfer the unexpended 2000 Grant - $3,800.00 2900-1-X Unallocated budget to Working Funds Reserve. 36. 7007-X-251I Transfer the unexpended 2000 Current Budget for $200,000.00 2900-5-X Assessment Appeals to Tax Write-Off Reserve. (To assist in the impact of Bill 14 - New Construction Factors). 935 , . Report TR-46-01 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 2000 Page 5 200 Year End Surplus 3.0 In October 2000, the municipalities of Clarington, Hope Township and Town of Port Hope entered into an agreement with the Federal Government concerning the long- term management of local low level radioactive wastes. Per the Agreement, the Municipality of Clarington received $10 million on April 12, 2001 to be held in trust from the Federal Government Host Community Fund. The monies from the Host Community Fund have been placed in investment securities per the Municipal Investment Policy, TR-76-98, Council approval October 13,1998. The investment interest earned form the Host Community Fund monies may be used by the Municipality of Clarington, as it sees fit. The respective Reserve Funds have been established for tracking the Host Community Fund in trust and the investment earned. See Attachment "A" and "B". 3.1 In the past with Council approval, the Sick Credit Reserve was established and annually adjusted to reflect the Municipality's employees vested sick leave amount. In accordance with the Public Sector Accounting Board (PSAB) requirements, employees vested sick credits must be shown as a liability on the municipal financial statements. Therefore, the December 31, 2000 Sick Credit Reserve balance of $221,226 has offset the impact of the municipal employees sick leave liability on the 2000 financial statement. The attached By-Law repeals By-Law #83-45 establishing Sick Credit Reserve. See Attachment "C". 3.3 The post employment benefit liability of $500,000 was set up on the 2000 General Ledger in accordance with PSAB requirements. Revenue: . Linear Taxation - Right of Way higher than budget $664,000 $765,000 . Supplementary taxes including payments in lieu higher than budget . WSIB (NEER) and EI rate reduction rebates $ 30,000 . Interest income was higher than budget due to conservative budgeting Practices and slightly favourable interest rates $400,000 Expenditures: . Net Municipal Elections overbudget due to legal issues and postage costs for the vote by mail process ($ 32,000) . Property taxation write-offs overbudget due to Minute of Settlements and ARB Decisions ($182,000) . PSAB requirements for sick leave liability and post employment benefit liability ($673,000) 936 , , Report TR-46-0 1 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 2000 Page 6 . Underexpenditures in various departments, affecting areas such as delayed filling of vacant positions in Community Services (Arena Manager and Arena Operators), Treasury (illness and Data Base Administrator), Clerks (Municipal By-Law Officer), Public Works (Manager of Operations), Planning (maternity leave). The reductions in these expenditures have a spin off effect to other associated accounts such as benefits, etc. $ 130,000 SUBTOTAL $ 97.000 $1.199,000 . Overall net underexpenditure in Operating budget Less: Transfer of current surplus to build up Reserve Funds and Reserves and financing liability. $1,199,000 NET REVENUE OVER EXPENDITURE $ o 3.3 The controllable expenditures met the 2000 Budget targets. However, the revenues were budgeted conservatively due to there being no comparative baseline resulting from changes legislated by the Province including down loading and current value assessment. 3.4 Effective in 1997, Council authorized that annual surpluses be transferred into the Working FundslRate Stabilization Reserve to be used in future years, as necessary to stabilize the municipal tax rate. 4.0 Final Comments The above has been discussed with the external auditors who concur that the M 'cipality reflects a secure cash position for the current and approaching year. I A. Marano, H.BSc., A.M.C.T., C.M.O., Treasurer. R viewed by, . C ". ci~v-Llj(_':__L..::sCi.- Franklin Wu, M.C.I.P., RP.P., Chief Administrative Officer. MMINTlLGIRBlhjl Attachments 937 Attachment ~'A" . . THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW #2001- Being a By-Law to establish a Reserve Fund For Port Granby Low Level Radioactive Waste Agreement WHEREAS the Council of the Corporation of the Municipality of Clarington considers it desirable to establish a Reserve Fund for Port Granby Low Level Radioactive Waste Agreement. AND WHEREAS Chapter MAS, Section 163(1) of the Municipal Act R.S.O. 1990, provides that, "Every municipality as dermed in the Municipal Affairs Act and every board, commission, body or local authority established or exercising any power or authority with respect to municipal affairs under any general or special Act in an unorganized township or in unsurveyed territory may in each year provide in the estimates for the establishment or maintenance of a reserve fund for any purpose for which it has authority to spend funds, but if the approval of the council is required by law for a capital expenditure or the issue of debentures of or on behalf of a local board, the approval of the council of a provision in the estimates of the local board for a reserve fund shall be obtained". NOW THEREFORE, Be It Enacted and It Is Enacted, as a By-Law of the Corporation of the Municipality of Clarington as follows: 1. THAT the Treasurer be authorized to establish a reserve fund entitled "Reserve Fund - Port Gtanby Low Level Radioactive Waste Agreement"; 2. THAT the Council may, by resolution passed by a majority of members present, direct the use of the funds for municipal purposes. By-Law read a first and second time this 25th day of June 2001. By-Law read a third and finally passed this 25th day of June 2001. John Mutton, Mayor Patti L. Barrie, Municipal Clerk 938 Attachment "B" . . THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW #2001- Being a By-Law to establish a Reserve Fund For Host Community Fund (in trust) WHEREAS the Council of the Corporation of the Municipality ofClarington considers it desirable to establish a Reserve Fund for funds received in trust from the Federal Government of Canada Host Community Fund. AND WHEREAS Chapter MAS, Section 163(1) of the Municipal Act R.S.O. 1990, provides that, "Every municipality as defmed in the Municipal Affairs Act and every board, commission, body or local authority established or exercising any power or authority with respect to municipal affairs under any general or special Act in an unorganized township or in unsurveyed territory may in each year provide in the estimates for the establishment or maintenance of a reserve fund for any purpose for which it has authority to spend funds, but if the approval of the council is required by law for a capital expenditure or the issue of debentures of or on behalf of a local board, the approval of the council of a provision in the estimates of the local board for a reserve fund shall be obtained". NOW THEREFORE, Be It Enacted and It Is Enacted, as a By-Law of the Corporation of the Municipality of Clarington as follows: 1. THAT the Treasurer be authorized to establish a reserve fund entitled "Reserve Fund - Host Community Fund (in trust)"; 2. THAT the interest earned be transferred to Port Granby Low Level Radioactive Waste Agreement Reserve Fund. By-Law read a first and second time this 25th day of June 2001. By-Law read a third and finally passed this 25th day of June 2001. John Mutton, Mayor Patti L. Barrie, Municipal Clerk 939 c ent . . THE CORPORATION OF THE MUNIClP ALITY OF CLARINGTON BY-LAW2001- Being a By-Law to repeal By-Law #83-45 Being a By-Law of the former Town of Newcastle to establish a Sick Credit Reserve. THE COUNCIL of the Corporation of the Municipality of Clarington enact as follows: 1. THAT effective on the passing of Report TR-46-01, By-Law #83-45 be repealed. By-Law read a first and second time this 25th day of June 2001. By-Law read a third and finally passed this 25th day ofJune 2001. John Mutton, Mayor Patti L. Barrie, Municipal Clerk 940