HomeMy WebLinkAboutFND-033-20Clarington
Staff Report
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Report To: General Government Committee
Date of Meeting: September 28, 2020 Report Number: FND-033-20
Submitted By: Trevor Pinn, Director of Finance/Treasurer
Reviewed By: Andrew C. Allison, CAO By-law Number:
File Number: Resolution#: GG-321-20
Report Subject: Financial Update as at June 30, 2020
Recommendation:
1. That Report FND-033-20 be received for information.
Municipality of Clarington
Report FND-033-20
Report Overview
Page 2
The COVID-19 pandemic has had a lasting impact on the Municipality of Clarington. It has
changed the way in which we provide services (a strong movement towards online services),
work, and live. The Municipality's most significant financial impact has been the reduction of
services in Community Services. This resulted in almost no revenue in the second quarter
as programs and facilities were shut down. The Municipality was able to mitigate these
losses and at the end of June 30, 2020 we are trending positively despite seeing reductions
in investment revenue.
The attached report provides information on the variances by service area with anecdotal
commentary where appropriate.
1. Background
Quarterly Reporting
1.1 The Budget Policy outlines a requirement for the Treasurer to report to Council on a
quarterly basis each year starting with the second quarter. This report fulfills that
reporting requirement.
New Format for Quarterly Report
1.2 In an effort to improve the usefulness of the information, and consistency of format with
the annual budget, the quarterly report is attached to this report as Attachment #1. Each
department is broken down by sub -department with the expenses grouped together
similar to the requirements for financial reporting and the 2020 annual budget.
1.3 Where there are key variances, these have been identified and are expanded upon for
Council's, and the public's, information.
1.4 This report is solely for operating expenses, Finance will be reporting separately in
October/November on the capital budget. The capital budget will be reported on semi-
annually, once in the fall which captures the "construction season" to September 30t"
and once in the spring which summarizes the prior year's activities.
2. Impact of COVID-19
2.1 Where appropriate, the impact of COVID-19 has been identified and discussed in
Attachment #1.
2.2 In August 2020, the Province of Ontario announced funding for the Safe Restart
Program. The Municipality is receiving approximately $2.1 million through phase 1 of
Municipality of Clarington Page 3
Report FND-033-20
this program, additional funding would be through an application process due in the fall
2020. At September 16, 2020, details of the program are still forthcoming.
2.3 Currently, all we know from the funding announcement is that the funding under this
program is to provide support for expenses and pressures associated with COVID-19. If
the Municipality is unable to account for all of the funds received, it must be put into a
reserve fund and can be utilized in 2021 for COVID-19 related expenses and pressures.
2.4 Staff believe that the following may be an example of qualifying expenditures:
a. Incremental wage and benefit costs for hours directly related to COVID-19
responses. This may include by-law enforcement costs as a result of increased
enforcement of the Province of Ontario emergency orders;
b. Purchase of personal protective equipment to respond to the pandemic, in excess of
regular PPE;
c. Costs associated with increased cleaning of facilities and equipment;
d. Small capital purchases for the improvement of public safety (barriers at facilities for
customer service areas, or to restrict entry to areas not allowed open under the
emergency orders) or increase signage to communicate to the public (signs for
closures of parks, reminders of social distancing);
e. Lost penalties and interest from property tax waivers; and
Lost revenues for programs prohibited by Provincial Orders, or reduced capacity as
a result of restarting.
2.5 We are waiting on clarification if lost interest revenue from investments, which are a
result of the economic downturn, would be eligible. As well, it is uncertain if the
Municipality's mitigation steps are to be considered before the attribution of the
Provincial funding or afterwards. This has a significant impact on how the funds can be
attributed.
3. Concurrence
Not Applicable.
Municipality of Clarington Page 4
Report FND-033-20
4. Conclusion
It is respectfully recommended that the report be received for information.
Staff Contact: Trevor Pinn, Director of Finance/Treasurer, 905-623-3379 ext. 2602,
tpinn(Dclarington.net
Attachments:
Attachment 1 — Financial Update for the Period Ending June 30, 2020
Interested Parties:
There are no interested parties to be notified of Council's decision.
Attachment 1 to Report FND-033-20
Financial Update as at June 30, 2020
Financial Update for the period ending June 30, 2020
(unaudited)
This report is to provide Council with an update on the Municipality of Clarington's financial activity through the first and
second quarter of 2020 and to compare it with the same period in 2019. This report will provide a financial overview of
budget variances as of June 30, 2020, and essential non -financial functions of the Municipality such as service level
achievements or deficits that have been realized within the reported quarter, a review of COVID-19 impacts and
department initiatives.
COVID-19 Implications
Since the beginning of the COVID-19 pandemic three reports have been provided to Council regarding the financial
impacts to the Municipality and the steps taken to provide financial support to the community. These include:
• Property Tax Relief program Property Tax Relief - FND-007-20
• Financial support program options Financial Support program Options - FND-008-20
• Financial support program options -Update COVID-19 Financial Support Update - FND-018-20
The largest financial impact to the Municipality to the end of June 30, 2020 related to the closure of recreation facilities
and programming. Whereas some municipalities provide public transit, in Durham Region the transit system is an upper
tier responsibility and therefore did not directly impact the Municipality. Steps taken to date have mitigated the lost
revenue from recreation programming closures; it is anticipated that as the Municipality reopens that the financial impacts
of COVID-19 on the Municipality will be felt greater than in the early stages of the pandemic.
To the end of June 30, 2020, the Municipality provided approximately $200,000 in interest and penalty relief through the
waiving of interest and penalties in May and June. A $100,000 grant program for not -for -profit organizations was created
and grants were provided in the third quarter. Not -for -profit organizations which rent facilities from the Municipality were
provided rent relief for the closure period to assist them in their cost containment measures, and to recognize the impact
that facility closures had on their operations.
The Province of Ontario and the Government of Canada have committed to providing $2.1 million in funding to the
Municipality in the third quarter to mitigate COVID-19 expenses and pressures. While not identified, it is anticipated that
this will help offset the lost revenue anticipated as we reopen recreational programming. A second phase has been
promised; however, this phase will be application based and provided to those municipalities with the greatest needs.
Taxes Receivable/Collected
Taxes receivable looks a little different this year with the impact of COVID-19 affecting all aspects of our business
process. The first quarter tax revenue totaled $45,801,251 which is on trend with prior years. The second quarter saw
$45,736,690 in tax revenue. This amount is less than prior years' as, per Council's direction, the June installment of the
final tax bill was moved to July to provide COVID-19 relief to our taxpayers. Further tax relief efforts occurred in the
second quarter by waiving the May and June penalties.
At the end of the second quarter, the amount of taxes outstanding compared to what has been billed is in a unique credit
balance. This variance is primarily a result of the June installment being delayed to July while our monthly pre -authorized
payments (PAP) continued as normal. Accounts have more of a credit at June 30 this year, than in previous years;
however, by July 31, 2020 this would correct itself.
Grants
In the second quarter a grant from the Canadian Parks and Recreation Association (CPRA) was received to deliver
Women's Learn to Play Pickleball. These funds will be used to pay for instructor wages and some supplies. As a result of
the COVID-19 pandemic impacting our ability to provide the program, an extension of the program due date was granted.
Kendal Community Centre will see accessibility renovations with funds received as part of the Canadian government's
Enabling Accessibility Fund. The grant funds will be used for the removal and replacement of the front doors and
installation of new power assist operators. This project will get start in the fall of 2020.
A grant from Federation of Canadian Municipalities (FCM) was received to support Clarington's participation in the
Municipalities for Climate Innovation Program (MCIP). The MCIP supports municipalities in developing a response to
climate change that protects residents, the environment and the economy. Funds received from the program are
subsidizing the Climate Change Response Coordinator position, who is working with the Interdepartmental Climate
Change Working Group to develop the Clarington Climate Action Plan and other climate initiatives in the Municipality.
Development Charges Collected
Residential and non-residential development charges collected as of June 30, 2020, was $4,938,362.
As of June 30, 2020, residential municipal development charges collected were $4,599,750 compared to $2,840,164 in
2019. In the 2015 Development Charges Background Study, it was forecasted that the Municipality would be collecting
approximately 823 units in total for 2020, or about 412 units at the end of the second quarter. Development charges have
been collected for 295 units as at June 30, 2020.
The development charges are significantly higher compared to 2019 due to the increased volume of permits issued in
2020. It has been noted that deck and renovation permits have increased this year, possibly as a result of COVID-19.
Staff attribute this increase to taxpayers wanting to improve their homes/yards since they are spending more time at
home. There have been a few large permits issued for townhouses, stacked townhouses and single detached dwellings.
Municipality of Clarington - Municipal Development Charges January 1 to June 30, 2020
2020
2019
Municipal
Number
Municipal
Number
Residential
Development
of Units
Development
of Units
Charges Paid
Charges Paid
Single/Semi- Detached
New construction
$2,322,094
129
$611,332
35
Additions
-
-
-
-
Townhouse
2,277,656
166
525,440
40
Apartment
-
-
-
-
Total Residential
$4,599,750
295
$1,136,772
75
Change in DC paid from prior year: 304.6%
Change in DC units from prior year: 293.3%
Non-residential
i
Municipal Development
Charges Paid
2019
Municipal Development
Charges Paid
Commercial
New construction
$4,128
$255,269
Additions
-
-
Industrial
New construction
334,484
Additions
-
-
Agricultural
-
-
Government
-
-
Institutional
-
-
Total Non-residential
$338,612
$255,269
Change in DC paid from prior year: 32.6%
Municipal Development Charge Incentives
In the 2015 Development Charges By-law 2015-035, there are several incentives to encourage development in
Clarington. These incentives mainly relate to multi -residential, commercial and industrial development. Since July 2015,
there has been a total of $1,555,277 in development charge incentives given to 15 properties. The split is approximately
37% and 63% respectively between residential and non-residential properties. Note that discretionary incentives are
required to be covered by the Municipality's tax base. There have been no new incentives given in 2020 as of June 30,
2020.
Investments
The Manager of Internal Audit provides a quarterly compliance memo to the CAO and the Treasurer. Below are the
highlights of this memo for the period ending June 30, 2020.
Investments by Institution
The compliance calculations include the reserve fund bank account as it's not used for ongoing operations and is
considered available for investing. The general fund TD bank account is used for the ongoing operations and are
consider as "required immediately" and therefore are not eligible for investing, it is not included in the compliance
calculations.
Table 1 Investments by institution
Total Funds
% of Total
. -
. I
TD Bank - Savings
$ 24,957,060
23.2%
0%
100%
ONE - HISA
10,051,986
9.3%
0%
100%
ONE - Equity
500,000
0.5%
0%
15%
ONE - Bond
4,234,327
3.9%
0%
15%
ONE - Corporate Bond
-
0.0%
0%
15%
RBC
12,639,148
11.7%
0%
20%
RBC - HISA
71,129
0.1%
0%
100%
National Bank
8,805,845
8.2%
0%
20%
BNS
13,688,006
12.7%
0%
20%
BMO
17,081,384
15.8%
0%
20%
HSBC
5,543,553
5.1 %
0%
20%
TD Bank
7,841,449
7.3%
0%
20%
Prov BC
2,369,686
2.2%
0%
20%
$ 107,783,572 100.0%
The Municipality was compliant with all restrictions on investment with individual institutions.
Investments by Term
Table 2 Term of investment
Total Funds
% of Total
M ff MIMI I 10 U.
90 Days
$ 43,780,756
40.60/6
20%
100%
90 Days to 1 Year
11,687,465
10.8%
51.5%
30% 100%
1 to 5 Years
38,994,171
36.2%
0% 85%
5 to 10 Years
8,479,731
7.9%
0% 50%
10 to 20 Years
4,841,449
4.5%
0% 30%
$ 107,783,572 100.0%
The Municipality was compliant with the stated term length restrictions. There is a significantly high component that is
less than 90 days, this is due to the One Fund HISA and TD reserve bank investments which are immediately accessible
and thereby highly liquid. Since the pandemic started, interest rates have dropped significantly to the point where GICs
have a lower return than the HISA. As it is not advisable to lock in funds for a lower return than liquid funds, the
Municipality has been increasingly utilizing HISA accounts and the ONE Fund portfolios to invest.
Investments by Type
Table 3 Type of Investment
Total Funds
% of'
HISA
$ 35,080,175
32.5%
0%
100%
Federal Debt
-
0.0%
0%
100%
Provincial Debt
2,369,686
2.2%
0%
80%
Municipal Debt
299,454
0.3%
0%
35%
Financial Institutions
65,299,930
60.60/.
0%
60%
Corporate Debt (non -financial)
-
0.0%
7
0%
10%
ONE Investment Pools
4,734,327
4.4%
0%
25%
$ 107,783,572 100.0%
As of June 30, 2020, the Municipality was not compliant with the restrictions for the investment types as defined in the
Municipal Investment Policy. At the beginning of the pandemic in Ontario and as a result of emergency orders, there was
some uncertainty whether the One Fund investments would remain accessible. As a result, the bulk of the One Fund
HISA account ($23,700,000) was transferred to the TD general fund bank account. In the second quarter (April), business
started coming around to a new normal and the One Fund did remain accessible. On June 24, 2020 $10,000,0000 was
transferred back to the One Fund HISA and a subsequent transfer of $5,000,000 was completed on July 3. 2020. If the
transfer on July 3 of $5 million is included in the Type of Investment calculations, the percentages are within the allowable
ranges of the investment policy. This transfer back to the One Fund HISA brings the Municipality back into compliance as
of July 3, 2020.
It is the Treasurer's opinion that while the funds were in the operating bank account they were not immediately required
and therefore should be included in the calculation of investable funds. Staff will be reviewing the wording of the
investment policy and providing an update to Council with guidance on determining what funds should be considered
available for investment.
Staffing Updates
There were 543 staff (including those on a leave — not COVID-19 related) as of June 30, 2020. Prior to COVID-19, there
were 809 employees which includes Mayor and Council (7), temporary staff, volunteer firefighters and employees on
leave (this does not include Library or Museum). On April 5, 2020 as a result of COVID-19, 339 part time staff (including
crossing guards) were placed on a declared emergency leave (DEL) as our facilities and schools were closed. Part-time
staff started returning at the end of June and July 2020. There were six retirements from January to June 2020.
Municipal Operating Revenues and Expenses
Overview - Financial Results
This financial update report to Council has been redesigned to focus on (unaudited) overall budget variances for the
period ending June 30, 2020. The reporting has expanded to show budget to actual variances by sub -department. The
department summaries indicate the status of the Municipality's operating accounts compared to the approved budget as
of June 30, 2020.
Many of the operations of the Municipality are impacted by seasonal trends such as ice rentals and winter control. The
timing of other activities can fluctuate from year to year such as legal and planning revenues. To best capture the trends,
the budget is allocated on a monthly basis based on the prior year's actual monthly distribution. In cases where there is no
prior history, the monthly allocation is divided equally over the twelve months.
Due to timing differences, variations from quarter -to -quarter as well as year-to-year exist and therefore, this statement
cannot be used in isolation, nor can it be easily extrapolated to predict the whole year's activities.
Each department is responsible for its budget. To assist with the management of the budget, monthly trial balances are
sent by the Finance Department to each department for regular review
The Summary of Operating Revenues and Expenditures compares the Municipality's budget to actual transactions as of
June 30, 2020, reflecting financial activity through the first and second quarters of 2020 and comparing it with the same
period in 2019. The tables below reflect the Municipality's operating budget only and exclude the year to date financial
activities of the library, museum and BIA's.
Revenue and Expense Categories
Revenues and expenses are categorized based on their
purpose and similarities.
Revenues
'_evie�
Estimated taxation, supplementary taxation, and
payments -in -lieu of taxation received. These funds may
be collected on behalf of the Region of Durham, the
Province of Ontario or a school board and are remitted to
the specific agency.
-rovincial Grants and Subsidies
Grants received from the Province of Ontario for specific
functions such as the Ontario Community Infrastructure
Fund or specific grant projects.
-ederal Grants and Subsidies
Grants received from the Government of Canada for
specific functions such as the Federal Gas Tax Fund or
specific grant projects.
User Fees
Fees for services including, but not limited to, facility
rentals, cemetery fees, application for planning and
building permits, recreational programming.
Licensing and Lease Revenue
Licensing fees such as taxi licensing and lease revenues
for the long-term lease of municipal facilities and
property.
Investment Income
All investment income earned by the Municipality through
its investment holdings, bank account balances and
investment in Elexicon.
Contributions from Reserves
Contributions from reserves and reserve funds for
specific purposes, as identified within the budget. This is
an internal source of funding and may be originally
sourced from taxation, grants or user fees.
Other Revenues
Any revenue that is not otherwise categorized.
Expenses
Salaries and Benefits
Compensation for all employees such as salaries, wages,
benefits, overtime, allowances and statutory benefits.
Materials
Includes items such as office supplies, salt and sand,
gravel, insurance costs, phone costs and other general
expenses.
Rent and Financial Costs
Bank charges, debit and credit card charges, cost of
rental equipment and facility rentals for the Municipality.
Purchase/Contracted Services
Items that are outsourced, such as professional services,
winter clearing and IT software as a service.
Debt Repayment
Interest on debt repayments to external parties
Grants and Transfer Payments
Grants provided to community groups, external boards
and agencies and levies from other organizations.
Contributions to Reserves and Reserve Funds
Contributions from the general fund for the Municipality's
reserves and reserve fund
Mayor and Council
•
21112T
21112T
21112T
zial i ..
Budget..-
%
100 Mayor
Expenditures
Salaries, Wages & Benefits
$203,354
$141,318
$126,506
$250,702
43.6%
Materials & Supplies
$26,128
$10,869
$35,512
$61,867
82.4%
105 Council
Expenditures
Salaries, Wages & Benefits
$260,938
$202,719
$216,938
$433,124
53.2%
Materials & Supplies
$2,544
$841
$6,507
$9,070
90.7%
106 Ward Council
Expenditures
Materials & Supplies
$14,927
$15,168
$20,300
$38,300
60.4%
107 Regional Council
Expenditures
Materials & Supplies
$14,857
$11,037
$12,952
$24,000
54.0%
Total Mayor & Council
$522,748
$381,952
$418,715
$817,063
53.3%
Highlights
The annual AMO conference that Mayor and members of Council usually attend was held virtually this year due to
COVID-19. Costs for the AMO conference are included in the above table as the charges were not reversed until July
2020.
Administration
000 Unassigned
Expenditures
Materials & Supplies
$362,212
$360,600
$364,934
$366,600
1.6%
130 Admin
Expenditures
Salaries, Wages & Benefits
$268,317
$301,900
$304,286
$594,903
49.3%
Materials & Supplies
$14,544
$5,711
$18,359
$59,700
90.4%
Contracted Services
$17,480
($5,063)
$64,889
$90,000
105.6%
170 Communication
Revenue
User Charges
($27,280)
($18,425)
($26,278)
($45,000)
59.1 %
Expenditures
Salaries, Wages & Benefits
$304,701
$307,817
$326,947
$645,631
52.3%
Materials & Supplies
$60,758
$43,231
$73,876
$124,400
65.2%
Contracted Services
$54,392
$38,829
$58,348
$102,725
62.2%
171 Tourism
Revenue
User Charges
($22,080)
Expenditures
Salaries, Wages & Benefits
$110,266
$116,666
$123,558
$244,544
52.3%
Materials & Supplies
$29,643
$21,908
$39,715
$80,750
72.9%
Contracted Services
$5,456
$4,482
$1,727
$32,085
86.0%
Highlights
Unassigned
The percentage of unexpended funds indicates that the materials and supplies actuals are reaching the end of their
budget allocations; however, there are only two accounts rolled up into this category for this sub -department. The full
value of the 2020 Operating Grant for the Board of Trade was distributed out of one of these accounts, while the full
balance of the budget for the Volunteer Recognition Program remains unspent. Due to COVID-19, this year's volunteer
recognition event will not go forward but will likely continue in 2021.
Admin
Contracted Services under the Admin sub -department is not underspent by 5.6%, there was an accounting accrual at the
end of 2019 that overstated the actuals and this left 2020 understated. This is an isolated event and will not affect 2021.
Legal Services
Highlights
There were no items of interest to highlight for the period ending June 30, 2020 for Legal Services.
Corporate Services
130 Admin
Revenue
User Charges
($201)
($12,000)
100.0%
Expenditures
Materials & Supplies
$101,549
$87,107
$105,480
$224,850
61.3%
160 HR/Payroll
Expenditures
Salaries, Wages & Benefits
$969,714
$553,554
$995,582
$1,542,249
64.1 %
Materials & Supplies
$5,096
$3,119
$5,215
$6,600
52.7%
Contracted Services
$15,931
$14,404
$14,366
$81,500
82.3%
Rents/Financial Expenses
$57,523
$52,506
$66,141
$130,000
59.6%
162 IT
Expenditures
Salaries, Wages & Benefits
$681,608
$697,751
$722,766
$1,417,707
50.8%
Materials & Supplies
$4,919
$1,030
$3,837
$5,000
79.4%
Contracted Services
$7,115
$2,335
$2,979
$15,000
84.4%
Transfers from RES / RF / CAP Fund
$110,000
$670,500
$670,500
$670,500
Reclass: CIF (NON-TCA) to GF
$358,454
$553,387
$317,648
$437,500
(26.5%)
163 Purchasing
Expenditures
Salaries, Wages & Benefits
$313,136
$316,678
$320,555
$632,025
49.9%
Materials & Supplies
$2,924
$1,924
$3,743
$4,890
60.7%
Highlights
Information Technology (IT)
Capital fund to general fund transfers require a deferral entry that is not captured in the timing of this report. The
adjustment will be reflected in the next quarterly update.
Software maintenance account will move towards the edge of their budget in the second quarter as there have been
several changes made regarding Microsoft licensing.
Additional IT costs related to COVID-19 have been seen in Council refurbishment for remote participation, refurbished
laptops, headsets for Teams meetings and large monitor purchases. It is anticipated that these expenditures will be
eligible for the COVID-19 funding provided by the Province of Ontario.
Deferred expense entries have not yet been processed, which explains the overage of 26.5% in the table above.
Human Resources/Payroll
Legal expenses are less than expected due to a general reduction in grievances. Upcoming CUPE negotiations may
result in the use of these funds.
Travel has decreased due to COVID-19 with many meetings and conferences moving to virtual online events.
Legislative Services
000 Unassigned
Revenue
User Charges
($200)
($200)
100.0%
130 Admin
Revenue
User Charges
($56,745)
($50,782)
($61,498)
($118,800)
57.3%
Expenditures
Salaries, Wages & Benefits
$557,760
$477,902
$589,532
$1,163,744
58.9%
Materials & Supplies
$29,729
$22,473
$42,732
$93,910
76.1 %
Contracted Services
$6,427
$13,110
$5,594
$10,800
(21.4%)
Transfers from RES / RF / CAP Fund
$15,000
$19,500
$19,500
$19,500
190 Animal Services
Revenue
User Charges
($49,316)
($51,042)
($40,819)
($87,800)
41.9%
Expenditures
Salaries, Wages & Benefits
$269,395
$186,720
$219,773
$433,420
56.9%
Materials & Supplies
$22,541
$23,558
$25,546
$65,825
64.2%
Contracted Services
$26,333
$35,963
$23,859
$55,000
34.6%
Transfers from RES / RF / CAP Fund
$8,638
$8,429
$7,000
$7,000
(20.4%)
191 Municipal Law Enforcement
Revenue
User Charges
($35,252)
($11,270)
($24,478)
($28,000)
59.8%
Fines/Penalties on Interest
($14,122)
($8,725)
($10,869)
($25,000)
65.1%
Expenditures
Salaries, Wages & Benefits
$236,203
$364,803
$429,504
$845,402
56.8%
Materials & Supplies
$7,102
$6,348
$21,227
$33,700
81.2%
Contracted Services
$34,178
$16,353
$30,255
$54,100
69.8%
192 Parking Enforcement
Revenue
User Charges
($71,719)
($33,736)
($38,687)
($80,000)
57.8%
Fines/Penalties on Interest
($223,878)
($92,509)
($124,783)
($250,000)
63.0%
Expenditures
Salaries, Wages & Benefits
$174,432
$182,141
$203,327
$409,462
55.5%
Materials & Supplies
$5,528
$4,403
$8,492
$24,840
82.3%
Contracted Services
$6,040
$3,933
$7,070
$10,000
60.7%
Rents/Financial Expenses
$5,379
$3,466
$4,515
$10,000
65.3%
Transfers from RES / RF / CAP Fund
$295,597
$126,245
$330,000
$330,000
61.7%
193 Election
Revenue
User Charges
$529
Expenditures
Salaries, Wages & Benefits
$271
Materials & Supplies
$1,227
Contracted Services
$3,943
$3,943
$69,000
$69,000
94.3%
Rents/Financial Expenses
$1,755
Transfers from RES / RF / CAP Fund
$125,000
$125,000
$125,000
$125,000
230 Grants
Revenue
Grants
($6,218)
($660)
($4,955)
($22,000)
97.0%
Highlights
Clerk's (Administration)
It is notable here that the contracted services actuals are over budget by 21.4%, which can be narrowed down to
overages in the professional fees account. The budget requirements for this account differ from year to year as there are
many factors that can create variances. In 2020 there have been additional fees from eScribe with the remote webcasting
peak due to COVID-19; it is anticipated that these expenses would be eligible for Provincial funding. As well, a large
investigation through the Ombudsman and Integrity Commissioning occurred in the first half of the year.
Clerk's are on track to see savings in travel, miscellaneous operating supplies and office supplies.
Animal Services
The transfers to the reserve funds increased due to animal service donations, these donations are recorded as revenue in
the animal services cap reserve fund. This is a common practice and is seen year over year.
Parking Enforcement
There is a noted decrease of fines and meter revenue for the second quarter due to refocus of duties and leniency
provided throughout the pandemic. This trend will continue into the third quarter.
Cemetery
Cemetery revenues are lower than expected in the second quarter. Bondhead cemetery, however has seen an increase
in revenue.
Construction for the Hampton columbarium was delayed due to COVID-19. It is expected to be completed by late
September and the department is optimistic that there will be brisk sales once it is open.
Finance and Unclassified Administration
000 Unassigned
Revenue
Fines/Penalties on Interest
($8,244)
($15,128)
($2,815)
($13,000)
(16.4%)
130 Admin
Revenue
User Charges
($147,222)
($64,425)
($122,404)
($178,000)
63.8%
Fines/Penalties on Interest
($630,310)
($440,427)
($555,840)
($1,250,000)
64.8%
140 Internal Audit
Expenditures
Salaries, Wages & Benefits
$77,771
$77,980
$151,831
48.8%
Materials & Supplies
$300
$300
100.0%
210 Finance Admin
Expenditures
Salaries, Wages & Benefits
$1,155,600
$1,149,382
$1,223,046
$2,411,937
52.3%
Materials & Supplies
$56,560
$32,800
$65,638
$106,400
69.2%
Contracted Services
$38,304
$56,523
$24,165
$49,000
(15.4%)
211 Unclassified Admin
Expenditures
Materials & Supplies
$178,592
$123,955
$243,546
$405,900
69.5%
Contracted Services
$1,063,110
$594,565
$1,032,729
$1,285,600
53.8%
Rents/Financial Expenses
$48,642
$54,298
$39,164
$205,000
73.5%
Transfers from RES / RF / CAP Fund
$4,077,547
$812,225
$812,225
$812,225
0.0%
Highlights
Unassigned
Accounts receivable fines and penalties on interest are higher than budgeted and higher than the same period in 2019.
Finance Admin
The legal fees account is over budget due to the increased involvement of external solicitor regarding non-residential
assessment appeals such as Loblaws, Walmart, Shoppers Home Depot and Canadian Tire. These appeals have been
ongoing for several years and are being completed in 2020. The Municipality has been able to recognize savings in lost
revenue higher than the legal costs, this benefits the Municipality in the past as well as going forward with protecting its
commercial assessment base
Unclassified Admin
The professional fees account is over budget due to the development charges study, post -employment benefits and
insurance. The Development Charge Study will be funded from the development charges reserve fund as approved in the
2019 budget, entry to be posted in a subsequent quarter.
Fines and penalties on interest are lower than budgeted and lower than in 2019. The difference of approximately
$200,000 is a result of the waiver of penalties and interest for two months as a result of COVID-19 to provide financial
relief to taxpayers throughout the Municipality.
Emergency Services
130 Admin
Revenue
User Charges
($308,169)
($299,029)
($64,494)
($105,000)
(184.8%)
Expenditures
Salaries, Wages & Benefits
$457,267
$475,250
$476,988
$940,149
49.4%
Materials & Supplies
$104,038
$79,102
$134,201
$239,650
67.0%
External Transfers to Others
$5,000
$750
$5,000
$10,000
92.5%
Transfers from RES / RF / CAP Fund
$638,731
$584,915
$553,925
$553,925
(5.6%)
280 Fire Prevention
Revenue
User Charges
($8,182)
($6,831)
($6,543)
($45,000)
84.8%
Expenditures
Salaries, Wages & Benefits
$316,436
$359,233
$372,233
$735,643
51.2%
Materials & Supplies
$8,585
$2,282
$9,096
$46,500
95.1 %
Contracted Services
$92,700
$92,700
100.0%
281 Fire Suppression
Expenditures
Salaries, Wages & Benefits
$3,923,669
$4,142,307
$4,317,820
$8,443,560
50.9%
Materials & Supplies
$17,132
$18,308
$31,946
$92,500
80.2%
Contracted Services
$30,603
$20,497
$31,015
$70,000
70.7%
282 Fire Training/Technical Support
Expenditures
Salaries, Wages & Benefits
$180,244
$185,153
$180,410
$350,680
47.2%
1•
2020
2020
2020
2020•,
Budget
• • -
' ,
Materials & Supplies
$2,553
$867
$3,169
$6,500
86.7%
283 Fire Communication
Expenditures
Contracted Services
$276,446
$299,002
$333,500
$587,000
49.1 %
284 Fire Mechanical
Expenditures
Materials & Supplies
$41,153
$36,622
$41,338
$120,000
69.5%
285 All Stations - P/T Admin
Expenditures
Salaries, Wages & Benefits
$438,053
$384,666
$433,687
$867,380
55.7%
Materials & Supplies
$15,427
$23,231
$20,189
$45,700
49.2%
Contracted Services
$1,032
$1,722
$1,365
$6,500
73.5%
286 Municipal Emergency Measures
Revenue
User Charges
($10,000)
100.0%
Expenditures
Materials & Supplies
$13,694
$13,602
$14,950
$26,950
49.5%
Contracted Services
287 Mechanical Technical Support
Expenditures
Salaries, Wages & Benefits
$65,505
$68,038
$69,354
$135,524
49.8%
Total Emergency Services - Fire
$6,219,217
$6,389,687
$7,051,849
$13,210,861
51.6%
Highlights
Administration
User charges include an invoice to OPG for the 2020 annual payment as per the Memorandum of Understanding with the
Municipality of Clarington and OPG.
Fire Suppression
Personal Protection Equipment (PPE) has generally increased in prices due to COVID-19, it is expected that some of
these costs will be eligible for Province of Ontario funding.
Engineering Services
000 Unassigned
Revenue
User Charges
($211)
($103)
($500)
($500)
79.4%
130 Admin
Revenue
User Charges
($270,007)
($129,293)
($45,975)
($50,500)
(156.0%)
Expenditures
Salaries, Wages & Benefits
$1,180,524
$1,163,347
$1,279,349
$2,513,421
53.7%
Materials & Supplies
$21,392
$18,591
$20,896
$53,950
65.5%
Contracted Services
$32,878
$139,064
$50,846
$150,250
7.4%
Debt Services (Principle & Interest paid)
$466,423
$474,045
$473,550
$544,417
12.9%
Transfers from RES / RF / CAP Fund
$3,632,054
$3,441,192
$3,415,536
$3,415,536
(0.8%)
250 Contributions
Revenue
Transfer between Funds
($543,200)
321 Building Inspections
Revenue
User Charges
($1,079,213)
($1,264,881)
($765,954)
($1,554,032)
18.6%
Fines/Penalties on Interest
($500)
($500)
100.0%
Expenditures
Salaries, Wages & Benefits
$624,630
$580,542
$670,948
$1,329,648
56.3%
Materials & Supplies
$39,662
$26,225
$47,276
$102,930
74.5%
Contracted Services
$53,639
$1,308
$84,409
$199,000
99.3%
324 Street Lighting
Expenditures
Transfers from RES / RF / CAP Fund
$100,000
$100,000
$100,000
$100,000
325 Parks
Expenditures
Materials & Supplies
$1,143
$151
$450
$500
69.8%
Contracted Services
$6,360
$10,000
36.4%
327 Parking Lots
Expenditures
Debt Services (Principle & Interest paid)
($13,284)
($14,990)
330 Roads & Structures
Expenditures
Contracted Services
$21,000
100.0%
334 Safe Roads
Expenditures
Materials & Supplies
$201
$819
$200
$13,500
93.9%
Contracted Services
$11,788
$503
$18,205
$50,000
99.0%
380 Road Maintenance
Expenditures
Contracted Services
$6,500
$6,500
100.0%
388 Fleet
Expenditures
Highlights
There were no items of interest to highlight for the period ending June 30, 2020, for Engineering Services.
Operations
000 Unassigned
Revenue
User Charges
($84,486)
($51,264)
($79,690)
($208,800)
75.4%
Expenditures
Salaries, Wages & Benefits
$59
$387
$90
$3,000
87.1 %
Materials & Supplies
$501011
$59,668
$37,938
$107,400
44.4%
Contracted Services
($1,402)
$1,497
$2,274
$3,000
50.1 %
130 Admin
Revenue
User Charges
($27,405)
($34,915)
($36,060)
($125,000)
72.1 %
Expenditures
Salaries, Wages & Benefits
$1,366,542
$1,283,602
$1,199,898
$2,361,020
45.6%
Materials & Supplies
$35,142
$31,682
$36,127
$74,700
57.6%
Contracted Services
$1,596
$7,147
$6,395
$11,000
35.0%
Transfers from RES / RF / CAP Fund
$2,265,000
$2,746,100
$2,746,100
$2,746,100
0.0%
324 Street Lighting
Revenue
User Charges
($2,212)
($111)
($7,321)
($15,000)
99.3%
Expenditures
Materials & Supplies
$381,187
$322,436
$533,719
$1,050,000
69.3%
Contracted Services
$102,004
$81,037
$135,556
$330,000
75.4%
Debt Services (Principle & Interest paid)
($19,745)
($22,281)
325 Parks
Expenditures
Salaries, Wages & Benefits
$363,834
$413,999
$580,539
$1,151,057
64.0%
Materials & Supplies
$141,761
$159,973
$160,857
$515,750
69.0%
Contracted Services
$109,192
$294,819
$568,600
$1,205,760
75.5%
Rents/Financial Expenses
$6,458
$5,174
$6,686
$30,000
82.8%
Transfers from RES / RF / CAP Fund
$100,000
$225,000
$225,000
$225,000
326 Cemetery
Revenue
User Charges
($68,313)
($62,413)
($63,332)
($143,000)
56.4%
Expenditures
Salaries, Wages & Benefits
$60,891
$67,282
$114,569
$225,854
70.2%
Materials & Supplies
$38,958
$65,808
$33,593
$95,700
31.2%
Transfers from RES / RF / CAP Fund
$50,000
$5,000
$5,000
$5,000
350 Waste Collection
Revenue
User Charges
($15,940)
($5,950)
($12,013)
($22,500)
73.6%
Expenditures
Materials & Supplies
$14,111
$12,830
$10,085
$22,500
43.0%
351 Recycling Collection
Revenue
User Charges
($1,652)
($439)
($891)
($1,500)
70.7%
Expenditures
Materials & Supplies
$314
$385
$200
$1,500
74.3%
370 Building & Property Service
Expenditures
Salaries, Wages & Benefits
$475,434
$439,625
$499,146
$992,159
55.7%
Materials & Supplies
$221,486
$235,409
$208,615
$549,265
57.1 %
Contracted Services
$83,739
$50,374
$61,562
$139,825
64.0%
Debt Services (Principle & Interest paid)
$100,844
$101,019
$100,979
$107,799
6.3%
Transfers from RES / RF / CAP Fund
$954,250
$1,325,000
$1,325,000
$1,325,000
0.0%
380 Road Maintenance
Revenue
User Charges
($14,875)
($18,111)
($12,677)
($19,500)
7.1 %
Expenditures
Salaries, Wages & Benefits
$241,140
$198,170
$195,699
$597,700
66.8%
Materials & Supplies
$330,041
$266,231
$256,239
$846,275
68.5%
Contracted Services
$282,176
$176,208
$497,947
$785,700
77.6%
381 Hardtop Maintenance
Expenditures
Salaries, Wages & Benefits
$159,175
$204,813
$219,405
$429,000
52.3%
Materials & Supplies
$105,568
$148,689
$130,091
$456,100
67.4%
Contracted Services
($3,648)
$160,000
100.0%
382 Lsetop Maintenance
Expenditures
Salaries, Wages & Benefits
$24,551
$26,308
$29,239
$72,500
63.7%
Materials & Supplies
$72,033
$62,289
$75,729
$342,000
81.8%
383 Winter Control
Revenue
User Charges
($73,347)
($842)
($80,906)
($90,000)
99.1 %
Expenditures
Salaries, Wages & Benefits
$781,990
$593,959
$652,839
$963,250
38.3%
Materials & Supplies
$1,890,065
$1,317,441
$1,314,791
$2,010,000
34.5%
384 Safety Devices
Expenditures
Salaries, Wages & Benefits
$81,776
$86,447
$76,747
$188,000
54.0%
Materials & Supplies
$152,853
$132,656
$112,061
$349,400
62.0%
Contracted Services
$242
$50,000
$50,000
100.0%
386 Storm Water Management
Expenditures
Salaries, Wages & Benefits
$1,952
$6,459
$5,390
$20,000
67.7%
Materials & Supplies
$1,005
$476
$1,100
$8,000
94.1 %
Contracted Services
$10,069
$92,000
$92,000
89.1 %
387 Regional Roads
Expenditures
Salaries, Wages & Benefits
$7,321
$6,690
$6,517
$9,000
25.7%
Materials & Supplies
$32,782
$29,458
$21,841
$33,500
12.1 %
388 Fleet
Revenue
User Charges
($807,711)
($803,700)
1•
2020
2020
2020
2020•,
Budget
Budget',
Expenditures
Salaries, Wages & Benefits
$256,359
$335,535
$442,880
$766,037
56.2%
Materials & Supplies
$669,612
$563,654
$45,695
$92,000
(512.7%)
Transfers from RES / RF / CAP Fund
$134,500
$185,000
$185,000
$185,000
440 Libraries
Expenditures
Materials & Supplies
$838
$894
$1,189
$4,450
79.9%
Contracted Services
$3,357
$1,955
$3,310
$7,350
73.4%
Debt Services (Principle & Interest paid)
$74,537
$74,908
$74,893
$78,342
4.4%
460 Museum
Expenditures
Materials & Supplies
$6,704
$7,774
$6,445
$17,800
56.3%
Contracted Services
$1,477
$6,375
$7,699
$12,000
46.9%
Total Public Works
$11,114,131
$11,377,685
$12,735,384
$21,153,493
46.2%
Highlights
Safety Devices
The special event budget has not been used due to the cancellation of events to reduce the risks of COVID-19.
Waste and Recycling Collection
No sales were made at the Hampton Operations/Public Works Centre during the COVID-19 shut down resulting in lower
sales than would generally be seen in this quarter. The expense for the waste and recycling supplies are lower as well
resulting from no inventory being purchased for that timeframe.
Fleet
The Fleet Miscellaneous Operating Supply account is rolled up into the materials and supplies category making it look like
it is over budget however this account's expenses are offset by fleet revenues.
Winter Control
Revenue for Winter Control is from January to April. This account is used for invoicing developers for winter
maintenance. Under the latest sub -division agreement, we no longer invoice for this, and developers now pay upfront for
this maintenance.
Community Services
130 Admin
Revenue
User Charges
($40,915)
($13,527)
($32,403)
($63,500)
78.7%
Expenditures
Salaries, Wages & Benefits
$485,471
$360,117
$489,174
$958,743
62.4%
Materials & Supplies
$27,587
$17,199
$32,338
$69,070
75.1%
Contracted Services
$6,002
Transfers from RES / RF / CAP Fund
$737,200
$816,700
$816,700
$816,700
420 Recreation Services Admin
Revenue
User Charges
($2,308)
($178)
($982)
($1,230)
85.5%
Expenditures
Salaries, Wages & Benefits
$450,283
$405,600
$511,394
$1,020,506
60.3%
Materials & Supplies
$9,157
$3,835
$10,733
$26,942
85.8%
421 Facilities
Revenue
User Charges
($1,103,165)
($759,958)
($1,148,489)
($2,357,646)
67.8%
Expenditures
Salaries, Wages & Benefits
$1,705,662
$1,577,313
$1,814,517
$3,604,093
56.2%
Materials & Supplies
$1,233,774
$1,030,703
$1,183,799
$2,641,186
61.0%
Contracted Services
$107,125
$92,711
$105,417
$157,434
41.1%
Debt Services (Principle & Interest paid)
$2,031,328
$1,906,828
$1,904,315
$1,957,836
2.6%
423 Concessions
Revenue
User Charges
($17,589)
($7,407)
($27,047)
($66,140)
88.8%
424 Aquatic Programs
Revenue
User Charges
($624,680)
($275,921)
($624,880)
($1,172,741)
76.5%
Expenditures
Salaries, Wages & Benefits
$385,508
$226,752
$458,837
$912,481
75.1 %
Materials & Supplies
$21,247
$5,934
$27,968
$61,830
90.4%
425 Fitness Programs
Revenue
User Charges
($265,023)
($212,589)
($272,615)
($532,295)
60.1 %
Expenditures
Salaries, Wages & Benefits
$159,912
$99,431
$182,256
$364,173
72.7%
Materials & Supplies
$6,060
$2,941
$10,758
$28,850
89.8%
Rents/Financial Expenses
$450
$529
$2,000
100.0%
426 Recreation Programs
Revenue
User Charges
($162,215)
($76,608)
($156,654)
($566,015)
86.5%
Expenditures
Salaries, Wages & Benefits
$128,233
$81,116
$254,237
$501,408
83.8%
Materials & Supplies
$17,373
$2,798
$16,887
$68,830
95.9%
Contracted Services
$16,524
$13,838
$16,653
$47,300
70.7%
Rents/Financial Expenses
$771
$173
$2,065
$2,800
93.8%
427 Community Development
Revenue
User Charges
($122,845)
($67,157)
($108,789)
($191,903)
65.0%
Expenditures
Salaries, Wages & Benefits
$255
$139
$4,063
$8,448
98.4%
Materials & Supplies
$90,038
$34,123
$81,200
$197,675
82.7%
Contracted Services
$21,928
$9,968
$27,651
$34,700
71.3%
428 55+ Active Adults
Revenue
User Charges
($66,772)
($41,257)
($85,560)
($162,231)
74.6%
Expenditures
Salaries, Wages & Benefits
$59,877
$38,747
$71,617
$142,812
72.9%
Materials & Supplies
$12,249
$7,819
$11,627
$25,400
69.2%
Contracted Services
$9,066
$3,665
$9,530
$16,550
77.9%
Rents/Financial Expenses
$560
$3,000
$3,000
100.0%
429 Customer Service
Revenue
User Charges
($8,516)
($19,589)
($8,316)
($15,675)
(25.0%)
Expenditures
Salaries, Wages & Benefits
$436,092
$334,103
$466,923
$926,556
63.9%
Materials & Supplies
$67,304
$50,795
$68,346
$132,736
61.7%
450 Client Services
Expenditures
Salaries, Wages & Benefits
$178,673
$188,919
$226,645
$444,740
57.5%
Materials & Supplies
$4,726
$941
$6,371
$12,840
92.7%
Highlights
Administration
As of March 13, all recreation facilities were closed, and all programs were cancelled until the end of the second quarter.
The greatest impact on revenues during this period was in the facility rentals and the aquatic/fitness/recreation programs.
Total revenues in these areas are approximately $1 million less than budgeted. With the gradual reopening of facilities
and the commencement of programs, Community Services is expecting to see improvement in revenues in subsequent
quarterly reports. The 2020 budgeted revenues for the department will not be achieved by year-end.
Community Services was forced to make difficult decisions regarding staffing in order to mitigate the loss of revenues for
the department. On April 6, 2020 approximately 300 part-time staff were put on a Declared Emergency Leave (DEL). This
included part-time staff working in all areas of the department. A significant component of all services provided by the
department is staffing costs. The total department cost of part-time wages (year to date) is $800,000, which is
approximately $800,000 lower than budgeted for the same period. In order to effectively plan for the gradual reopening of
facilities, some part-time staff from DEL were recalled in the last weeks of June. Sixteen facility operators were
redeployed to the Operation Department on May 4, 2020, and some full-time clerical staff were reassigned to other
departments. Those staff costs continued to be through the Community Services accounts, so no savings were
realized. The filling of staff vacancies is delayed until reopening plans warrant it. This results in Administration Full -Time
Salaries accounts reporting year to date actuals less than budgeted for the same period.
With the closure of all indoor recreation facilities in the second quarter, the cost of utilities was reduced across all facilities.
It is expected the total cost for heat, hydro and water for all indoor recreation facilities will be less than the total budgeted
for 2020.
Many of the operating costs for Materials and Supplies, in various accounts, have seen a significant decrease in these
costs due to the COVID-19 risk mitigation events by the department.
Planning Services
000 Unassigned
Expenditures
Salaries, Wages & Benefits
$224,697
$133,039
$219,295
$438,591
69.7%
Materials & Supplies
$14,298
$60,927
$117,151
$238,750
74.5%
Transfers from RES / RF / CAP Fund
$696,728
634,717
$634,717
$634,717
0.0%
130 Admin
Revenue
User Charges
($307,087)
($235,441)
($573,661)
($862,300)
72.7%
Expenditures
Salaries, Wages & Benefits
$1,479,302
$1,428,564
$1,600,025
$3,145,792
54.6%
Materials & Supplies
$45,965
$27,961
$50,753
$114,750
75.6%
Contracted Services
$43,051
$4,031
$7,625
$186,000
97.8%
Transfers from RES / RF / CAP Fund
$12,500
$12,500
$12,500
$12,500
0.0%
250 Contributions
Revenue
Transfer between Funds
($123,695)
385 Environmental
Expenditures
Contracted Services
$123,695
$123,695
100.0%
430 Smallboards
Expenditures
Materials & Supplies
$1,500
$1,500
$1,500
100.0%
Highlights
There were no items of interest to highlight the 2020 second quarter for Planning Services
Looking forward to the 3rd Quarter
2020 Development Charge Study Update and Presentation
On September 18, 2020, the Province of Ontario proclaimed the remaining amendments to the Development Charges Act
(the DCA) and the Planning Act which where outlined in the More Homes, More Choice Act and the COVID-19 Economic
Recovery Act. This sets forth a two year period to implement a Community Benefits Charge if the Municipality so chooses.
The changes also approve the changes to eligible services under the DCA and removes the 10 per cent required
deduction.
The Municipality will be publishing the draft DC study and by-law by October 15, 2020 with a public meeting held on
November 9, 2020. The planned ratification of the new by-law would be at the December 14, 2020 Council meeting. Staff
continue to invite those interested parties to contact the Municipality to provide input on the ongoing DC review.
Continuous Improvement/Key Performance Indicators
As this report is constantly evolving and improving, we hope the third quarter report will include upcoming continuous
improvements within the Municipality and focus on key performance financial indicators that will be used to benchmark
existing service levels.