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Home My WebLink AboutTR-29-00 ..... . THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: General Purpose and Administration Committee File #: f{Jo er Res.#?fJI1- ;1ft'-oo Date: June 19, 2000 Report #: TR-29-00 File #: By-Law #: Subject: TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 1999 Recommendations: It is respectfully recommended the General Purpose and Administration Committee recommend to Council the following: 1. THAT ReportTR-29-00 be received; and 2. THAT the transfers to the Reserves/Reserve Funds identified in TR-29-00 be approved. Background & Comments: 1.0 Annual ReDort 1.1 With the preparation of the 1999 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 following are standard year end transfers, made to cover approved 1999 budget items which were incomplete at December 31, 1999 but anticipated to be used in 2000 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. '. 801 ~dl Report TR-29-00 Page 2 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 1999 FromfTo Details Transfer 1. 7007-X-405/ Transfer unexpended tax levy of the 1999 $ 19,966.49 2900-17-X Capital Budget for Leases to General Capital Reserve for purchase of furniture/ fixtures and unanticipated capital projects includina eraonomic issues. 2. 7007-X-405/ Transfer the unexpended tax levy of the $2,934.48 2900-17-X 1999 Capital Council Communication Equipment to General Capital Reserve to be used for Durchases in 2000. 3. 7029-X-405 / Transfer the unexpended tax levy of the $52,717.06 2900-17-X 1999 Capital Facilities for various locations to General Capital Reserve to be used in 2000 to comolete oroiects. 4. 7005-X-405 / Transfer the unexpended tax levy of the $5,024.58 2900-17-X 1999 Capital Clerks Equipment to General Capital Reserve to be used for ourchases in 2000. 5. 7005-X-405 / Transfer the unexpended tax levy of the $2,018.80 2900-12-X 1999 Capital Animal Services Equipment to Animal Control Equipment Reserve to be used for Durchases in 2000. 6. 7007-X-405 Transfer unexpended tax levy of the 1999 $323,850.22 7009-X-405 / Capital Computer Services software and 2900-24-X hardware, re: budget for future financial system replacement plus budgeted requirements, to be completed in 2000 to the Comouter Eauioment Reserve. 7. 7202-X-405 / Transfer the unexpended tax levy of $567,052.71 2900-17-X incomplete 1999 Capital Public Works projects to be completed in 2000 to General Capital Reserve (ie. Road Resurfacing, High SI., Wellington SI., Middle Rd., Sidewalk Replacement, Culvert Improvements and Unspecified . Construction\. 8. 7202-X-405 / Transfer the unexpended tax levy of $2,951.52 2900-17-X incomplete 1999 Capital Street Lighting for unspecified locations to General Caoital Reserve to be used in 2000, 9. 7202-X-405 / Transfer the unexpended tax levy of $58,264.37 2900-17-X incomplete 1999 Capital Street Lighting for Hwy. #2, Courtice to General Capital Reserve to be used in 2000 to complete oroiect. 10. 7202-1-405 / Transfer the unexpended tax levy of the $2,500.00 2900-17-X 1999 Capital Public Works Pavement Management System to General Capital Reserve to be used in 2000 to complete oroiect. 802 .. Report TR-29-00 Page 3 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 1999 FromITo Details Transfer 11. 7220-X-405 / Transfer the unexpended tax levy of the $17,889.32 2900-10-X 1999 Capital Public Works Fleet Replacement to the Public Works Equipment Reserve to be used for ourchases in 2000. 12, 7602-X-405 Transfer the unexpended tax levy of the $30,929.88 7606-8-114/ 1999 Capital RRC Equipment to General 2900-17-X Capital Reserve to be used for purchases in 2000. 13. 7602-X-405 / Transfer the unexpended tax levy of the $20,019.46 2900-17-X 1999 Capital Facilities for Newcastle Community Hall to General Capital Reserve to be used in 2000 to complete oroiect. 14. 7710-X-405/ Transfer the unexpended tax levy of the $1,840.11 2900-17-X 1999 Capital Marketing and Tourism Billboard to General Capital Reserve to be used in 2000. 15. 7602-X-403 / Transfer the unexpended tax levy of the $3,000.00 5001-82-X 1999 Capital Bowmanville Museum projects to the Bowmanville Museum Reserve Fund to be used in 2000 to comolete oroiects. 16. 7702-X-405 / Transfer the unexpended tax levy of the $344.03 2900-17-X 1999 Capital Planning Equipment purchase to General Capital Reserve to be used for ourchases in 2000. 17. 7007-X-251 / Transfer unexpended 1999 Current Bud- $200,000.00 2900-5-X get for Assessment Appeals to Tax Write- Off Reserve, (To assist in the impact of Bill 14 - New Construction Factors). 18. Object 233 Staff Transfer unexpended 1999 Staff $41,259.84 Development / Development Budget to General Capital 2900-17-X Reserve for training in 2000. (Re: com outer trainino, etc. - all deoartmentsl. 19. Various Transfer 1999 funds to General Capital $117,612.29 Departments / Reserve for items requisitioned in 1999 2900-17-X but received in 2000. 20. 7004-1-247 Transfer unexpended 1999 Consulting $10,442.00 7005-X-247/ budget to Professional Fees Reserve. 2900-26-X 21. 7602-X-247/ Transfer unexpended 1999 Community $40,000.00 2900-26-X Services Consulting to Professional Fees Reserve to complete 1999 projects (ie. Recreation Master Plan), 22. 7009-X-247 Transfer unexpended 1999 Consulting $26,366.00 7009-X-259 / and Software Development for computer 2900-24-X services to Computer Equipment Finance Reserve. 803 .. Report TR-29-00 Page 4 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 1999 FromITo Details Transfer 23. 7702-X-247/ Transfer a portion of the unexpended $12,058,70 2900-26-X 1999 Planning Consulting budget to Professional Fees Reserve to be used for the municipal portion of the Foster Creek Watershed Studv. 24. 7702-X-247/ Transfer a portion of the unexpended $2,897.20 2900-26-X 1999 Planning Consulting budget to Professional Fees Reserve to be used for the Amendment to the EIS. 25. 7702-X-247/ Transfer a portion of the unexpended $13,078.00 2900-26-X 1999 Planning Consulting budget to Professional Fees Reserve to be used for the Worden (East) Neighborhood Design Plan. 26. 7007-X-298/ Transfer a portion of the unexpended $10,500.00 2900-17-X 1999 Contingency budget to General Capital Reserve to be used for consulting work Re: Fire Department centralized dispatch, as approved in Report FD-02-00. 27. 7007-X-298/ Transfer a portion of the unexpended $5,000.00 2900-32-X 1999 Contingency budget to Samuel Wilmot Nature Area Reserve to be used for parking lot improvements, as . aooroved in Reoort TR-65-99. 28. 7007-X-298/ Transfer a portion of the unexpended $9,269.00 2900-17-X 1999 Contingency budget to General Capital Reserve to be used for Orono Cemetery Board's grant request, as aooroved. 29. 7007 -X-298 / Transfer a portion of the unexpended $72,500.00 2900-26-X 1999 Contingency budget to Professional Fees Reserve to be used for legal and other professional services carried over into the vear 2000. 30. 7007 -X-298 / Transfer a portion of unexpended 1999 $100,976.80 2900-17-X Contingency budget to General Capital Reserve to be used in 2000 as part of the fire neootiations settlement. 31. 7710-X-405/ Transfer 1999 Marketing and Tourism $1,000.00 2900-17-X funds to General Capital Reserve for the purchase of the camera for 1999 Photo Contest, sponsored by Ontario Power Inc. 32. 7603-1-405 / Transfer 1999 unexpended funds to $300,000.00 2900-1-X Working Funds/Rate Stabilization Reserve to fund approved 2000 Capital budget parklands equipment reolacement. 804 .. Report TR-29-00 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 1999 Page 5 From/To 33. 7007-X-299/ 1170-1-X Details Transfer to Unclassified Administration - Miscellaneous, all prior years bad debts deemed uncollectible by the Municipality's collection agency. All efforts have been exhausted. Transfer funds to Allowance for Bad Debts for all departments General Accounts Receivable in order to build up allowance. Transfer $16,467.50 34. Object 299 Miscellaneous / 1170-1-X $5,000.00 2.2 As Council is aware, the Municipality is participating in the Durham Municipal Insurance Pool, with a start-up date of July 1, 2000. There is a three-year commitment to this pool, as approved by Council. The premiums for the three-year period will be paid to the Region of Durham, as pool administrator, over that time frame, as required. 2.3 The Municipality has received verbal notification that Minutes of Settlement are pending relating to an appeal of Ontario Power Generation - Darlington Site. It is recommended that proceeds received from the pending 1999 Minutes of Settiement be transferred to the Working Funds/Rate Stabilization Reserve. 3.0 1999 Year End Surplus 3.1 The Municipality has been fortunate to be able to realize a surplus through revenue gains in conjunction with close monitoring of all expenditures during 1999, These differences can not be anticipated during the compilation of the budget, primarily because revenue is predicted more conservatively than expenditures such that if it is not realized, the Corporation would not be negatively impacted to any great extent. Also in many instances expenditures are lowered by taking advantage of economies of scale, seasonal efficiencies and co-operative tendering. For the most part the revenue gains account for the beneficial surplus position that the Corporation is at for the year ended December 31, 1999. 3.2 The major areas contributing to the surplus are as follows: Revenue: . Outstanding taxes remain high due to the impact of Current Value Assessment and Capping Legislation which results in higher penalty and interest (Note: some of these properties will be eligible for tax sale).........................................$ 150,000 . Linear Taxation - Right of Way higher than budget..... ........................ ....1 ,500,000 . Increase in Rezoning, Site Plans and Zoning Clearance fees higher than budget............................................................................................ ...19,000 . WSIB (NEER) and EI rate reduction rebates..............................................20,000 . Increase in Building and Plumbing Permits issued....................................170,000 8U5 .. Report TR-29-00 TRANSFERS TO RESERVE AND RESERVE FUNDS - YEAR END 1999 Page 6 . Interest income was higher than budgeted due to conservative budgeting practices and a more proactive cash management strategy.......................................... ..90,000 EXDenditures: . Underexpenditures in various departments, affecting areas such as delayed filling of vacant positions in Building Inspection (Chief Building Official and Building Inspector), Treasury (matemity leaves), Public Works Department (down time), Community Services Department (Arena Manager, Assistant Director of Community Services and Arena Operators). The reductions in these expenditures have a spin off effect to other associated accounts such as benefits, etc...............................,..................$120,000 . Overall net underexpenditure in Operating budget.....................................34,000 SUBTOTAL $2,103,000 Less: Transfer of current surplus to Working Funds/Rate Stabilization Reserve............................................................................ .$2,073,000 NET REVENUE OVER EXPENDITURE $ 30.000 3.3 The controllable expenditures met the 1999 Budget targets. However, the revenues were budgeted even more conservatively than normal 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 Funds/Rate 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 Municipality reflects a secure cash position for the current and approaching year. Respe ui,W submitted, i / /"' Reviewed by, () (~~ ()" "'l--t Franklin Wu, M.C.I.P., R.P.P., Chief Administrative Officer. A Marano, H.BSc., A.M.C.T., C.M.O., Treasurer. MM/NT/LG/RB/hjl 806