HomeMy WebLinkAboutFND-012-19Clarington
Finance Department
Report
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Report To: General Government Committee
Date of Meeting: May 6, 2019
Report Number: FND-012-19 Resolution: GG -299-19
File Number: By-law Number:
Report Subject: Financial Update as at December 31, 2018
Recommendation:
That Report FND-012-19 be received for information.
Municipality of Clarington
Report FND-012-19
Report Overview
Page 2
The purpose of this report is to update Council on the overall budget variances as of
December 31, 2018 as well as other financial indicators such as taxes receivable,
investments, debt and development charges collected. These are not audited figures and
are subject to changes as the year-end process is completed. This report cannot be used to
forecast the year-end financial position.
1. Background
1.1 The financial update has been designed to focus on overall budget variance. Additional
financial information is provided to show trends relating to general economy.
2. Fourth Quarter of 2018 Results
2.1 Attachment 1, Summary of Operating Expenditures and Revenues, compares the
Municipality's budget to actuals as of December 31, 2018. This statement reflects the
Municipality's operating budget only. It excludes financial activities for library, museum,
BIAs and consolidated hall/arena boards. Year to date expenditures as of December
31, 2018 totalled $87,011,449 which represents 107.2% of the 2018 budget. Revenues
totalled $90,352,305 which is 111.3% of the 2018 budget.
2.2 Attachment 1 is intended to provide an indication of the status of the Municipality's
operating accounts compared to the approved budget as at December 31, 2018. It is
important to note that the figures presented in this report do not represent final year-end
figures. Year-end accruals and adjustments necessary to ensure revenue and
expenses are charged to the appropriate fiscal year will continue to be processed to
finalize the 2018 year to prepare the Municipal Financial Statements in accordance with
the Canadian generally accepted accounting principles (GAAP). The external audit of
the 2018 year will be completed at the end of June. Also the 2018 and 2017 figures in
this report do not include all consolidated municipal service board activities nor non-
cash activities such as capital asset amortization and unfunded post -employment. This
statement cannot be used in isolation and does not show the final position of the
Municipality in either year.
2.3 Monthly trial balances are sent to each department for regular review of their accounts.
Revenues and expenditures that have a variance either above or below budget that are
noteworthy are discussed in this report.
2.4 Non -departmental accounts are higher than budgeted at 107.3%. Supplementary
taxes are higher than budgeted by approximately $570,000. Interest earned on General
Fund investments is higher than budgeted due to the increase in interest rates and the
use of the One Fund HISA. Other revenues include the donation from Toyota Canada
and the Municipality's share of Veridian profits.
2.5 Mayor and Council net expenditures are overall in line with the budget at 100.8%.
Some of the variance is explained in report FND-005-19 2018 Council Remuneration.
Municipality of Clarington
Reoort FND-012-19
Page 3
Going forward, financial update reports on 2019 activities will include a quarterly update
on Mayor and Council's expenses.
2.6 Corporate Services net expenditures are at 96.8% of the 2018 budget. Revenues are
higher than budgeted due to WSIB refund and the WSIB NEER rebate. The
Municipality is receiving a 2018 NEER rebate due to the good rating from our WSIB
record.
2.7 The Clerk's net expenditures are at 96.2%. Higher than budgeted parking revenues of
approximately $150,000 are offset by the corresponding expense which transfers
revenues to parking reserve fund. Other revenues such as cemetery sales, snow
clearing fines and animal licences also are higher than budgeted.
2.8 Finance net expenditures are at 134.7% of the 2018 budget. Some of the variances are
due to year-end adjustments that are posted through unclassified administration.
2.9 Emergency Services net expenditures are at 101.9% of the 2018 budget. Revenues
are higher than budgeted as not all OPG Memorandum of Understanding funds are
included in the budget. Emergency call revenues are not budgeted. In 2018, there was
approximately $109,000 for MTO emergency call revenues. There is a corresponding
transfer to the Emergency Services reserve fund in the expenditures. As well volunteer
fire fighter costs are higher than budgeted.
2.10 Engineering net expenditures are at 87.3% of the 2018 budget. This favourable result is
due in large part to the high revenues in building permits and inspection fees. At the
end of 2018, building permit revenues were at $3,216,037 or 209% of the 2018 budget.
A portion of the building permit revenues are transferred to the Building Division
Reserve Fund to offset expenses during year of low revenues (see FND-008-19).
Inspection fees are not budgeted but are offset by a corresponding transfer to the
reserve fund.
2.11 Operations net expenditures are at 105.2%. Expenditures for winter control were over
the 2018 budget by approximately $760,000. This can be attributed to the extended
winter season and the timing of winter events. Higher road maintenance costs were
mitigated by lower park maintenance costs.
2.12 Planning net expenditures are at 105.3%. Planning revenues are higher than budgeted
at 173.5%. In particular, fees for site plans, condo application and subdivisions.
Secondary plans and related sub watershed studies have also increased revenues. As
they are setup for cost recovery, these projects have increased both revenues and
expenditures.
2.13 Attachment 2, Continuity of Taxes Receivable as of December 31, 2018 provides the
status of the taxes billed and collected by the Municipality. A total of $2,789,857 in
supplementary tax bills were issued to property owners in the Municipality in the fourth
quarter of 2018. At the end of 2018, a total of $3,037,703 remains unpaid compared to
December 2017 taxes receivable of $3,181,645. The net balance is $143,942 lower or
Municipality of Clarington Page 4
Report FND-012-19
4.5% lower than the previous year at this time. The current year taxes outstanding are
higher than the previous year but this is mitigated by the increase in PAPs. The
monthly PAP$ processed in December 2018 are applicable to the 2019 taxes and
therefore are shown as pre -paid taxes. Tax collection efforts are carried out throughout
the year and continue to manage well the balance of taxes outstanding
2.14 Attachment 3, Debenture Repayment Schedule provides the status of the Municipality's
long term debt obligations as of January 1, 2019. In 2018, the debt repayment
obligations were $3,403,277. As noted in previous reports, the LED street light
conversion and parking lots are being financed internally by the Municipality. In 2019,
the debt repayment obligations are $2,841,958 as per the current debt. The annual
principal and interest payments required to service these liabilities remain well below
the annual debt repayment limits prescribed by the Ministry of Municipal Affairs and
Housing.
2.15 Attachment 4, Municipal Development charges as of December 30, 2018 provides the
development charges collected separated into residential and non-residential. At the
end of 2018, residential municipal development charges collected are $12,228,197. In
the 2015 Development Charges Background Study, it was forecasted that the
Municipality would be collecting approximately 786 units. In 2018, there were 762 units.
Compared to 2017, there was an increase of 7.1 % in residential development charges
collected and a 15.4% decrease in the number of residential units. This can be
explained by the large number of apartment units in 2017. Preliminary number from the
first quarter of 2019 show a significant reduction in development charges collected.
2.16 In 2018, non-residential development charges collected totaled $1,873,267. Note that
non-residential development charges are based on the area in square metres rather
than per building unit cost. The timing and amount of no -residential development
charges varies year to year. The Toyota Canada facility would be included in this
figure.
2.17 There are a number of incentives in the 2015 Development Charges By-law 2015-35 to
stimulate desired development in Clarington. In the fourth quarter, there was an
industrial incentive for $613,842.47 given. Since July 2015, a total of $1,555,276.71 in
incentives have been given to sixteen (16) properties. At the end of 2018, there has
been two development incentives given for residential properties totalling $571,662.26.
Fourteen properties have been given non-residential incentives given totalling
$983,614.45.
2.18 The Municipality's investments are in compliance with Provincial legislation and the
Municipality's Investment Policy which was approved by Council on July 3, 2018
(FND-011-18). As per this policy, the Treasurer is to provide an in-depth annual
investment report on the 2018 year's investment. For the 2018 investment review, please
see report FND-013-19 2018 Annual Investment Report.
Municipality of Clarington Page 5
Resort FND-012-19
3. Concurrence
Not Applicable
4. Conclusion
It is respectfully recommended that the fourth quarter of 2018 financial update report be
received for information.
S
Submitted by:
Trevor Pinn, B.Com, CPA, CA,
Director of Finance/Treasurer
Reviewed by:
Andrew C. Allison, B. Comm, LL.B
CAO
Staff Contact: Catherine Carr, Manager of Internal Audit, 905-623-3379 ext 2606 or
ccarr@clarington.net
There are no interested parties to be notified of Council's decision.
Attachment 1 — Summary of Operation Revenues and Expenditures
Attachment 2 — Continuity of Taxes Receivable
Attachment 3 — Debenture Repayment Schedule
Attachment 4 — Municipal Development Charges
The Municipality of Clarington
Attachment 1 for FND-012-19
These are not audited figures and are subject to change as the year-end process is completed. This report cannot be used to forecast the year-end financial
position.
2018 Budget
2018 Actual
2018
Unexpended ($)
2018%
Expended
2017 Budget
2017 Actual
2017
Unexpended ($)
05 Non -departmental Accounts
Municipal Taxation
62,634,835
63,362,558
727,723
101.2%
(59,340,165)
(1,659,469)
(6,120,518)
(60,373,575)
(2,070,426)
(9,118,984)
1,033,410
410,957
2,998,466
Other Revenue 1,851,538 2,734,573 883,035 147.7%
Contributions 5,762,273 (9,248,560) 3,486,287 160.5%
Revenue/Taxation/Contributions
70,248,646
(75,345,691)
5,097,045
107.3%
(67,120,152)
(71,562,985)
4,442,833
59 BIA Taxation
(203,300)
203,300
(203,300)
203,300
0
0
BIA Taxation 211,820 211,820 0 100.0%
BIA Payments 211,820 211,820 0 100.0%
Net Expenditures
0
0
0
0
0
0
10 Mayor and Council
Net Expenditures
920,932
928,329
(7,397)
100.8%
879,297
868,774
10,523
13 Administrator's Office
Revenues/Recoveries
165,500
179,374
13,874
108.4%
(165,500)
330,000
633,010
1,141,602
(252,093)
330,000
714,779
1,079,688
86,593
0
(81,769)
61,914
Board of Trade 339,900 339,900 0 100.0%
Operating Expenditures (including Port Granby) 612,527 689,425 (76,898) 112.6%
Communications & Tourism 1,147,766 1,123,168 24,598 97.9%
Expenditures
21100,193 1
2,152,493
(52,300)
102.5%
2,104,612
2,124,467
(19,855)
Net Expenditures
1,934,693
1,973,119
(38,426)
102.0%
1,939,112
1,872,374
66,738
14 Legal Administration
Revenues/Recoveries
Expenditures
Net Expenditures
(170,000)
546,792
376,792
(122,203)
521,873
399,670
(47,797)
24,919
(22,878)
71.9%
95.4%
106.1%
(69,000)
417,242
(129,504)
363,828
60,504
53,414
348,242 234,324
113,918
These are not audited figures and are subject to change as the year-end process is completed. This report cannot be used to forecast the year-end financial
position.
The Municipality of Clarington
Attachment 1 for FND-012-19
These are not audited figures and are subject to change as the year-end process is completed. This report cannot be used to forecast the year-end financial
position.
2018 Budget
2018 Actual
2018
Unexpended ($)
2018%
Expended
2017 Budget
2017 Actual
2017
Unexpended ($)
16 Corporate Services
Revenues/Recoveries
8,000
255,577
247,577
_
3,194.7%
(3,000)
4,264,170
(137,263)
4,485,747
134,263
(221,577)
Expenditures 4,720,273 4,817,069 96,796 102.1%
Net Expenditures
4,712,273
4,561,492
150,781
96.8%
4,261,170
4,348,484
(87,314)
19 Clerk's
(685,900)
3,183,373
(835,104)
3,270,642
149,204
(87,269)
Revenues/Recoveries 684,900 928,614 243,714 135.6%
Expenditures 3,740,364 3,868,777 (128,413) 103.4%
Net Expenditures
3,055,464
2,940,163
115,301
96.2%
2,497,473
2,435,538
61,935
21 Finance & Unclassified Administration
(1,552,000)
2,513,141
3,146,536
(2,658,819)
2,413,456
6,491,989
1,106,819
99,685
(3,345,453)
Revenues/Recoveries 1,502,000 2,011,383 509,383 133.9%
Operating 2,616,900 2,554,563 62,337
Unclassified Administration 2,858,637 4,810,784 (1,952,147) 168.3%
Expenditures
5,475,537
7,365,347
(1,889,810)
134.5%
5,659,677
8,905,445
(3,245,768)
Net Expenditures
3,973,537
5,353,964
(1,380,427)
134.7%
4,107,677
6,246,626
(2,138,949)
28 Emergency Services - Fire
Revenues/Recoveries
Expenditures
(110,000)
12,362,786
(288,291) 178,291
12,771,542 (408,756)
262.1%
103.3%
(85,000)
12,112,470
(271,558)
12,487,872
186,558
(375,402)
Net Expenditures
12,252,786
12,483,251
(230,465)
101.9%
12,027,470
12,216,314
(188,844)
32 Engineering Services
Revenues/Recoveries
(1,605,532)
(4,136,632)
2,531,100
257.6%
(1,550,700)
534,407
6,919,358
(3,718,875)
534,407
8,643,449
2,168,175
0
1,724,091
Debenture Payments 538,773 538,773 0 100.0%
Operating Expenditures 7,448,843 9,172,017 1,723,174 123.1%
Expenditures
7,987,616
9,710,790
(1,723,174)
121.6%
7,453,765
9,177,856
1,724,091
Net Expenditures
6,382,084
5,574,158
807,926
87.3%
5,903,065 5,458,981
444,084
These are not audited figures and are subject to change as the year-end process is completed. This report cannot be used to forecast the year-end financial
position.
The Municipality of Clarington
Attachment 1 for FND-012-19
36 Operations
2018 Budget
2018 Actual
2018
Unexpended ($)
2018%
Expended
2017 Budget
2017 Actual
2017
Unexpended ($)
672,423
770,579
98,156
114.6%
(684,800)
16,486,059
1,205,586
(945,696)
18,473,002
1,055,205
260,896
(1,986,943)
150,381
Revenues/Recoveries
Operating Expenditures
Fleet & Debenture Payments
Expenditures
Net Expenditures
42 Community Services
Revenues/Recoveries
18,116,278
1,667,046
19,306,060
1,568,181
(1,189,782)
98,865
106.6%
94.1%
19,783,324 1 20,874,241 (1,090,917) 105.5%
17,691,645
19,528,207
(1,836,562)
19,110,901 20,103,662 (992,761) 105.2%
17,006,845 18,582,511
(1,575,666)
(5,104,866) (4,883,305) (221,561) 95.7%
(4,875,365)
11,421,127
3,177,849
95,000
(4,907,874)
11,780,849
3,105,958
95,000
32,509
(359,722)
71,891
0
Operating Expenditures
12,556,918 12,295,670 261,248 97.9%
Debenture Payments
Annual Grant & Sponsorships
Expenditures
Net Expenditures
2,115,485
95,000
2,115,485
93,750
0
1,250
100.0%
98.7%
14,767,403 14,504,905 262,498 98.2%
14,693,976
14,981,807
(287,831)
9,662,537 9,621,600 40,937 99.6%
9,818,611 10,073,933
255,322
(596,675)
4,843,688
(1,083,079)
4,263,891
486,404
579,797
50 Planning Services
Revenues/Recoveries
702,300 1,218,836 516,536 173.5%
Expenditures
4,378,036 5,088,336 710,300 116.2%
Net Expenditures
3,675,736
3,869,500
(193,764)
105.3%
4,247,013
3,180,812
1,066,201
Boards &Agencies
4,190,911
4,195,927
5,016
100.1%
4,084,177
4,234,496
150,319
(77,591,392)
77,591,392
(86,706,150)
84,896,332
9,114,758
(7,304,940)
Total Operating:
Revenue/Recoveries
(81,185,987) (90,352,305) 9,166,318 111.3%
Expenditures
81,185,987 87,011,449 (5,825,462) 107.2%
Net Difference
0
(3,340,856)
3,340,856
0
(1,809,818)
1,809,818
These are not audited figures and are subject to change as the year-end process is completed. This report cannot be used to forecast the year-end financial
position.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON Attachment 2 to
Continuity of Taxes Receivable Report FND-012-19
for the Fourth Quarter of the Year 2018
Beginning
Balance
+ Interest
+ Taxes
- Payments &
+ Prepaid
December
December
Receivable
Added
Billed
- Balance
Adjustments **
Taxes
2018
2017
September 30,
2018
Current Year
Taxes
17,618,759
2,403,329
20,022,088
(14,033,378)
5,988,710
5,631,465
Penalty and Interest
171,541
279,949
451,490
(213,188)
238,301
201,508
First Prior Year
Taxes
2,222,690
325,546
2,548,236
(977,043)
1,571,193
1,852,079
Penalty and Interest
201,014
67,785
268,799
(115,461)
153,338
133,562
Second Prior Year
Taxes
683,158
60,982
744,141
(315,430)
428,711
493,624
Penalty and Interest
93,241
19,353
112,594
(53,824)
58,770
48,212
Third and Prior Years
Taxes
212,085
212,085
(31,332)
180,752
53,421
Penalty and Interest
43,805
4,898
48,703
(3,247)
45,456
13,405
Sub -total
21,246,293
371,984
2,789,857
24,408,134
(15,742,903)
8,665,231
8,427,275
Prepaid Taxes (Prepaid taxes include property tax
(5,627,528)
(5,627,528)
(5,245,630)
monthly pre -authorized payment program PAP)
Total
21,246,293
371,984
2,789,857
24,408,134
(15,742,903)
(5,627,528)
3,037,703
3,181,645
NOTES:
** These figures include refunds, write-off, 357's etc.
2018 Interim Instalment months: February and April.
2018 Final Instalment months (for non -capped classes): June and September
2018 Final Instalment months (for capped classes): August and September
Muncipality of Clarington
Attachment 3 of
Report FND-012-19
Debenture Repayment Schedule
As of January 1, 2019
Diane Hamre
Indoor Soccer
RRC
MAC
Green Road
Recreation
Year
Lacrosse RRC CCD space
Improvements
Improvements
Grade Separation
Courtice Library
Complex
Total
2019
165,174.58
107,074.68
84,141.23
107,967.35
541,802.38
78,146.32
1,757,651.34
2,841,957.88
2020
164,755.07
107,074.68
84,010.16
107,799.19
544,416.38
78,341.53
1,604,355.98
2,690,752.99
2021
163,863.49
107,074.68
83,946.43
107,717.40
546,559.49
78,465.50
1,054,141.30
2,141,768.29
2022
163,542.75
83,964.94
107,741.15
546,559.49
78,488.31
1,006,711.96
1,987,008.60
2023
162,800.11
83,859.28
107,605.57
546,276.36
78,425.64
978,966.96
2024
160,675.42
83,823.08
107,559.13
553,240.30
78,249.84
983,547.77
2025+
668,981.96
858,416.52
2,693,604.53
546,030.80
4,767,033.81
980,811.42
321,224.04
1,172,727.08
1,504,806.31
5,972,458.93
1,016,147.94
5,422,860.58
16,391,036.30
Principal at
896,000.00
294,299.58
950,705.28
1,219,914.89
4,958,600.00
871,000.00
5,083,000.00
14,273,519.75
January 1, 2019
Principal at
755,000.00
201,115.35
893,002.36
1,145,872.34
4,573,600.00
811,000.00
3,500,000.00
11,879,590.05
January 1, 2020
Interest Rates
2.25% to 3.35%
5.12%
1.9% to 3.45%
1.9% to 3.45%
2.25% to 3.8%
1.32% to 2.8%
4.65% to 4.75%
Municipality of Clarington
RESIDENTIAL
Single/Semi- Detached
-New construction
-Additions
Townhouse
Apartment
TOTAL:
Attachment 4 to
Report FND-012-19
MUNICIPAL DEVELOPMENT CHARGES
January to December YTD
Change in DC paid from prior year:
Change in DC units from prior year:
NON-RESIDENTIAL
Commercial
-New construction
-Additions
Industrial
-New construction
-Additions
Agricultural
Government
Institutional
TOTAL:
7.1%
-15.4%
2018
2017
2017
Municipal Development Charges
Municipal Development
Number of
Municipal Development
Number
Charges Paid
Units
113,428.43
Charges Paid
of Units
$
10,205,253.00
608
$
7,860,658.00
478
$
1,681,877.20
$
342,467.97
$
2,022,944.00
154
$
892,710.00
72
$
-
-
$
2,661,979.00
351
$
12,228,197.00
762
$
11,415,347.00
901
$
1,042,220.30
Change in DC paid from prior year:
Change in DC units from prior year:
NON-RESIDENTIAL
Commercial
-New construction
-Additions
Industrial
-New construction
-Additions
Agricultural
Government
Institutional
TOTAL:
7.1%
-15.4%
Change in DC paid from prior year: 79.7%
2018
2017
Municipal Development Charges
Municipal Development Charges
Paid
Paid
$
113,428.43
$
670,903.27
$
-
$
20,744.28
$
1,681,877.20
$
342,467.97
$
77,961.74
$
-
$
-
$
8,104.78
$
1,873,267.37
$
1,042,220.30
Change in DC paid from prior year: 79.7%
Municipality of Clarington
Attachment 4 to
Report FND-012-19
Municipal Development Charges Incentives
As of December 31, 2018
Under By-law 2015-035
Date
Property
Value
Incentive
Residential
Jan -16
105 Queen Street, Bowmanville
413,822.26
Mid -Rise Residential
Dec -17
109 King Avenue East, Newcastle
157,840.00
Revitalization Mixed Used
Residential Incentives to Date $
571,662.26
Non -Residential
Jul -15
222 King Street East, Bowmanville
110,671.30
Medical Exemption
Oct -15
21 King Avenue East, Newcastle
3,636.08
Revitalization Small Business
Feb -16
222 Baseline Road East, Bowmanville
13,279.78
Existing Industrial Development
Feb -16
28 King Avenue East, Newcastle
937.96
Revitalization Small Business
Apr -16
70 Mearns Court, Bowmanville
1,470.67
Existing Industrial Development
Oct -16
2323 Highway 2, Bowmanville
15,985.00
Conversion Residential to Commercial
Oct -16
70 Mearns Court, Bowmanville
8,232.17
Existing Industrial Development
Feb -17
48 Britton Court, Bowmanville
24,676.61
New Industrial Development
May -17
5314 Main Street, Orono
974.18
Revitalization Small Business
Jun -17
1726 Baseline Road, Courtice
10,190.86
New Industrial Development
Oct -17
220 Lake Road, Bowmanville
67,850.25
New Industrial Development
Dec -17
109 King Avenue East, Newcastle
72,886.25
Revitalization Mixed Use
Apr -18
685 Lake Road, Bowmanville
38,980.87
New Industrial Development
Oct -18
1050 Lambs Road, Bowmanville
613,842.47
New Industrial Development
Non -Residential Incentives to Date $
983,614.45
Total Value of Incentives to Date $ 1,555,276.71