HomeMy WebLinkAboutFND-015-05
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REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
MONDAY, OCTOBER 17, 2005
Resolution #: C'-rPA -11()S.06
Report #: FND-O 15-05
File #:
By-law #:
Subject:
HANOI TRANSIT GRANT
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-015-05 be received;
2. THAT Handi Transit Incorporated be provided with a supplementary operating
grant of $10,000, to be financed from the Clarington Transit Reserve Fund; and
3. THAT Handi Transit Incorporated be notified of Council's decision.
Reviewed Q~-= ll.A
Franklin Wu,
Chief Administrative Officer.
Submitted by:
NT/hjl
REPORT NO.: FND-015-05
PAGE 2
BACKGROUND AND INFORMATION:
1.0 As Council is aware, responsibility for transit (including specialized transit) will be
transferred to the Region of Durham effective January 1, 2006. Many transitional
items are currently underway.
1.1 Clarington is responsible for costs for transit up to December 31,2005. All costs
for transit in Clarington are financed from the Clarington Transit Reserve Fund.
1.2 Communication has been received from Handi Transit Incorporated (copy
attached) indicating a potential shortfall for 2005. As this is based on an estimate
at this time, any surplus funds would be returned upon windup of the corporation.
RECOMMENDATIONS:
2.0 It is recommended that Handi Transit Incorporated be provided with the
necessary supplementary grant to finance operating costs to December 31,
2005, since a windup of the corporation is underway.
Attachment:
Attachment "A" - letter from Handi Transit Incorporated
Interested parties:
Handi Transit Incorporated
Att: Executive Director
44 William Street West
Oshawa, Ontario
L1G1J9
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET. BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169
Attachment "A"
HANDI TRANSIT INCORPORATED
44 WILLIAM STREET W.
OSHAWA, ONTARIO
L1G 1J9
OFFICE
DISPATCH
DISPATCH
FAX
(905) 571-1222
(905) 725-4OCO
1-800-263-1916
(905) 571-7390
October 5, 2005
Nancy M. Taylor, B.RA., C.A.
Director of Finance/Treasurer
Municipality of Clarington
40 Temperance Street
Bowmanville, Ontario
LlC 3A6
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OCl 0 5
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Ury OF
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''''AlCE !TING;,
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Dear Ms. Taylor:
RE: Request for Su""lementarv Fundinl! - 2005 Handi Transit Budl!et
As you are aware, 2005 will be Handi Transit's final year of operation, thus ending a
twenty-four (24) year relationship with the Municipality of CIa ring ton. The year is also
turning out to be very challenging financially, which is complicating an orderly "wind-
down" to the operation.
Backl!:round
1. Durham Region Transit will assume Specialized Transit services effective
January 1, 2006
2. Handi Transit's agreements with the five (5) stakeholder municipalities, including
Clarington, will terminate December 31,2005.
3. Handi Transit Inc., a Not-for-Profit Organization, has commenced a process to
"wind-down" operations and legally dissolve the Corporation.
4. A clear stipulation within the dissolution process is the fact that the organization
must be free of debts and/or liabilities.
5. Over the years, Handi Transit has operated with occasional operating deficits,
however had the ability to build the recovery of a deficit into the subsequent
year's budget. With no subsequent year to rely on, any outstanding deficit would
have to be covered by the municipality.
... 2
OSHAWA - WHITBY - CLARINGTON - SCUGOG - UXBRIDGE
@
2
Potential for Oueratinl!: Deficit for the year ended Dccember 31, 2005
With reference to the attached 2005 Year-end Forecast, the main issues that could create
a deficit situation are: i) Unplanned "Union" expense item ($4.500). as a result oIa
termination settlement; and ii) Escalatinf! Diesel Fuel expense - May exceed budget by
as much as $5.000.
You'll note that we have projected a potential operating deficit of $10,000, and
respectfully request that the Municipality of Clarington approve a supplementary
operating grant, giving consideration to the special circumstances that the 2005
transition presents.
As we have demonstrated in the past, we will explore every opportunity to minimize any
deficit. At the conclusion of the 2005 independent audit, any surplus funds will be
returned to the Municipality.
Thank you for your cooperation.
Yours truly,
/~~/iM
BJ.(Ben) Chartier,
Executive Director
c.c. Board of Directors, Handi Transit Inc.
HANOI TRANSIT CLARINGTON
2005 BUDGET I FORECAST
2005 Budaet 2005 Forecast
REVENUE
Grant 148,000 148,000
Fares 23,000 23,000
Other 1,500 1,000
Total Revenue 172,500 172,000
EXPENDITURE
Administration 48,000 48,000
Operations
Fuel 13,000 18,000
Maintenance 13,500 14,000
Insurance 6,000 6,500
Taxis 2,000 2,000
Wages 65,000 65,000
Benefits 18,500 18,000
Union 0 4,500
Evening/Weekend 5,000 5,000
Other 1,500 1,000
Total Expenditure
172,500
182,000
Projected (deficit)
o
-10,000