HomeMy WebLinkAboutFND-049-20Clarington
Staff Report
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Report To: General Government Committee
Date of Meeting: November 30, 2020 Report Number: FND-049-20
Submitted By: Trevor Pinn, Director of Financial Services
Reviewed By:
File Number:
Andrew C. Allison, CAO
By-law Number:
Resolution#: GG-455-20
Report Subject: Financial Update as at September 30, 2020
Recommendation:
1. That Report FND-049-20 be received for information.
Municipality of Clarington
Report FND-049-20
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 continued to affect revenues in the third quarter even
as programs and facilities began to open back up. The Municipality was able to mitigate
these losses and at the end of September 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 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 like
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 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.
Municipality of Clarington
Report FND-049-20
3. Concurrence
Not Applicable.
4. Conclusion
It is respectfully recommended that the report be received for information.
Page 3
Staff Contact: Trevor Pinn, Director of Financial Services/Treasurer, 905-623-3379 ext. 2602,
tpinn clarington.net
Attachments:
Attachment 1 — Financial Update for the Period Ending September 30, 2020
Interested Parties:
There are no interested parties to be notified of Council's decision.
Attachment 1 to Report FND-049-20
Financial Update
Pit
Mr
at September 30,2020
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Financial Update for the period ending September 30,
2020 (unaudited)
This report 'aims to provide Council with an update on the
Municipality of Clarington's financial activity through the
third quarter of 2020 and compare it with the same period
in 2019. This report will provide a financial overview of
budget variances as of September 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
In August 2020, the Province of Ontario announced
funding for the Safe Restart Program. The Municipality
was allocated approximately $2.1 million through phase 1
of this program. The receipt of these funds will be
reflected in the fourth-quarter financial report. As of
September 30, 2020, there have not been any updates
on the funding announcement. Funding under this
program provides support for expenses and revenue
pressures associated with the COVID-19 pandemic.
Suppose the Municipality is unable to account for all of
the funds received. In that case, remaining funds must be
put into a reserve fund and utilized in 2021 for eligible
purposes. After careful consideration, the Treasurer's
advice was that the second phase of the funding not be
pursued..
The Municipality continues to experience the financial
impacts of COVID-19. Affects on our revenues and
expenses are highlighted below for each department.
Taxes Receivable/Collected
Taxes Receivable as of September 30, 2020, provides
the status of the taxes billed and collected by the
Municipality during the third quarter. A total of
$24,044,928 remains unpaid which is similar to the same
quarter in previous years.
To provide COVID-19 relief to our taxpayers, the
Municipality moved the June installment of the final tax
bill to July. In 2020, two installment dates, the adjusted
date in July and the regularly scheduled date in
September fall in the third quarter.
Grants
Clarington received another installment of the grant from
the Federation of Canadian Municipalities (FCM) to
support '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.
The initial installment of the grant for summer students
was received in the third quarter and is used to subsidize
student wages. Generally, the funding would be received
in October or November; due to COVID, a July
installment was made. This year's grant is lower than
last year's grant by 47 per cent.
Grant funding was received from the Tourism Industry
Association of Ontario (TIAO) this quarter. The TIAO
partnership through FedDev Ontario aids local
Destination Marketing Organizations with the Regional
Recovery and Relief Fund to help support marketing
efforts during the pandemic. Due to COVID-19, TIAO
pushed back the program end date from December 31,
2020, to February 28, 2021.
Development Charges Collected
Residential and non-residential development charges
collected as of September 30, 2020, was $11,426,934.
Residential municipal development charges collected
were $10,680,150 compared to $2,388,914 in 2019 for
the same period. The 2015 Development Charges
Background Study forecasted that the Municipality would
be collecting approximately 823 units in total for 2020, or
about 617 units by the end of the third quarter. As at
September 30, 2020, development charges have been
collected for 737 units..
The development charges are significantly higher
compared to 2019 due to the increased volume of
permits issued in 2020. It was noted that deck and
renovation permits had increased this year, possibly as a
result of COVID-19. Staff attribute this increase to
taxpayers wanting to improve their homes/yards as 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 September 30, 2020
i
Residential
Municipal
Number of
Municipal
Development
Units
Development Number of Units
Charges Paid
Charges Paid
Single/Semi- Detached
New construction
$ 4,499,854.00
249
$ 983,515
56
Additions
Townhouse
5,181,866.00
373
854,264
64
Apartment
998,430.00
115
551,135
65
Total Residential
$ 10,680,150.00
737
$ 2,388,914
1 185
Change in DC paid from prior year:
Change in DC units from prior year:
347.1 %
298.4%
Municipal
Development
Municipal
Development
Non-residential
Charges Paid
Charges Paid
Commercial
New construction
$ 412,300.48
$ 358,795.79
Additions
-
-
Industrial
New construction
334,483.99
30,133.35
Additions
_
_
Agricultural
_
_
Government
-
-
Institutional
-
-
Total Non-residential
$ 746,784.47
$ 388,929.14
Change in DC paid from prior year: 92.0%
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 are no new
incentives in 2020, as of September 30, 2020.
Property &
2015
2016
2017
2018i2020
Total
Percentage
Incentive .-
of Total
Mid -Rise
$413,822
413,822
Residential
Revitalization,
157,840
157,840
Mixed Use
Residential
-
413,822.
157,840
-
-
-
571,662
37%
Medical Exemption
110,671
110,671
Revitalization,
3,636
938
974
5,548
Small Business
Existing Industrial
22,983
22,983
Development
Conversion
Residential to
15,985
15,985
Commercial
New Industrial
102,718
652,823
755,541
Development
Revitalization,
72,886
72,886
Mixed Use
Non -Residential
114,307
39,906
176,578
652,823
-
-
983,614
63%
$114,307
$453,728
$334,418
$652,823
$ -
$ -
$1,555,277.
100%
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
September 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
is consider as "required immediately" and therefore is not
eligible for investing; it is not included in the compliance
calculations.
Total Funds
% of Total
• -
• -
TD Bank - Savings
$23,018,812
19.40%W%R
100%
ONE - HISA
23,383,592
19.70%
0%
100%
ONE - Equity
2,499,996
2.10%
0%
15%
ONE - Bond
4,254,506
3.60%
0%
15%
ONE - Corporate Bond
-
0.00%
0%
15%
RBC
15,153,314
12.80%
0%
20%
RBC - HISA
75,459
0.10%
0%
100%
National Bank
8,805,845
7.40%
0%
20%
BNS
12,979,424
10.90%
0%
20%
BMO
15,081,384
12.70%
0%
20%
HSBC
Total Funds
5,543,553
% of Total
4.70%
0%
20%
TD Bank
7,841,449
6.60%
0%
20%
$ 118,637,334 100.00%
The Municipality was compliant with all restrictions on investment with individual institutions.
Investments by Term
Total Funds
% of Total
- • -
- • -
90 Days
$59,538,747
50.20%
20%
100%
90 Days to 1 Year
4,674,330
3.90%
54.10%
30%
100%
1 to 5 Years
36,624,485
30.90%
0%
85%
5 to 10 Years
8,479,731
7.10%
0%
50%
10 to 20 Years
9,320,041
7.90%
0%
30%
$118,637,334 100.00%
The Municipality was compliant with the stated term
component that is less than 90 days; this is due to the
length restrictions. There is a significantly high One Fund HISA and TD Reserve Bank investments,
which are immediately accessible and thereby highly
liquid. The investments in the 10 to 20-year terms are all
bank bonds, which are considered to have adequate
Investments by Type
liquidity. There are uses for these long-term investments,
but the specifics have not been clearly identified.
Total Funds
% of Total
�� . -
•
HISA
$46,431,372
39.10%
0%
100%
Federal Debt
-
0.00%
0%
100%
Provincial Debt
-
0.00%
0%
80%
Municipal Debt
4,778,046
4.00%
0%
35%
Financial Institutions
60,673,414
51.10%
0%
60%
Corporate Debt (non -financial)
-
0.00%
0%
10%
ONE Investment Pools
6,754,502
5.70%
0%
25%
$118,637,334
As of September 30, 2020, the Municipality is compliant
with the investment types' restrictions as defined in the
Municipal Investment Policy. Investments with financial
100.00%
institutions do not include cash accounts; however, it
does include GICs and bonds.
At the beginning of the second quarter , in response to
the global pandemic, the bulk of the One Fund HISA
account ($23,700,000) was transferred to the TD General
Fund bank account. There was some uncertainty in
March whether the One Fund investments would remain
accessible. This has been corrected in the third quarter,
the One Fund HISA General Fund balance has been
restored and is over $23 million at the end of the third
quarter.
Staffing Updates
For the period ending September 30, 2020, there were
706 staff (including those on leave — not COVID related).
Before COVID-19, there were 809 employees including
Mayor and Council (seven), temporary staff, volunteer
firefighters and employees on leave (this does not include
Library or Museum). The quarter saw more part-time
staff returned from the DEL, and crossing guards
returned with new school year. There were two
retirements during the third quarter.
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 September 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 September 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 and year-to-year exist. 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. Financial
Services provides each department monthly trial
balances to assist with the management of their
respective budgets.
The Summary of Operating Revenues and Expenditures
compares the Municipality's budget to actual transactions
as of September 30, 2020, reflecting financial activity
through the third quarter 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 Business Improvement Areas (BIA's). It is important
to remember that these are not the final financial figures
for the year. Although these charts provide an overall
representation of our current financial standing, there are
many factors unaccounted for and the final financial
figures could be vastly different at year-end.
The following table summarizes financial results for the
year-to-date by department. Please note that "Levies"
reflects the fact that there was a 90-day deferral of
payment to the school boards for their taxes, this will net
to $0 by the end of the year. There are several year-end
adjustments, particularly with capital and reserve
transfers, which will be recorded at year-end.
YTD
YTD
YTD
Final
Unexpended
Description
Unassigned
($59,600)
($40,550)
$-
$-
Non -Departmental Accounts
(72,015,891)
(71,110,085)
(75,302,433)
(75,881,769)
6.3%
Mayor & Council
808,090
558,609
630,315
817,063
31.6%
Administrator's Office
1,570,215
1,599,903
1,846,761
2,296,338
30.3%
Legal Admin
239,540
265,914
297,501
503,791
47.2%
Corp Services
3,462,331
4,080,361
4,249,627
5,179,396
21.2%
Legislative Services
1,855,408
1,418,703
2,341,387
2,926,353
51.5%
Financial Services & Unclassified
6,493,271
3,611,102
3,530,818
3,987,193
9.4%
Admin
Emergency Services - Fire
9,032,616
9,239,286
10,387,185
13,210,861
30.1%
Engineering Services
5,152,400
3,188,712
6,110,713
6,910,720
53.9%
Public Works
14,523,048
14,560,375
16,300,958
21,153,493
31.2%
Community Services
7,546,673
5,967,712
8,207,910
10,153,263
41.2%
Planning Services
2,536,761
2,450,063
3,062,529
4,033,995
39.3%
Levies
(9,854,806)
(18,187,872)
(8,619,177)
-
-
BIA Taxation
-
-
-
-
-
Libraries/Museums
3,378,585
3,883,364
3,755,775
3,755,775
(3.4%)
Culture
525,403
214,784
219,366
219,366
2.1 %
Extrnl Agencies
673,531
734,162
734,162
734,162
-
Total Municipality of Clarington
($24,132,425)
($37,565,457)
($22,246,603)
$ -
Revenue and Expense Categories
Revenues and expenses are categorized based on their
purpose and similarities.
Revenues
'-eviec
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
100 Mayor
Expenditures
Salaries, Wages & Benefits
277,423
196,831
193,835
250,702
21.5%
Materials & Supplies
38,916
14,643
47,122
61,867
76.3%
105 Council
Expenditures
Salaries, Wages & Benefits
446,663
309,681
333,751
433,124
28.5%
Materials & Supplies
3,408
1,163
7,829
9,070
87.2%
106 Ward Council
Expenditures
Materials & Supplies
22,616
20,159
29,300
38,300
47.4%
107 Regional Council
Expenditures
Materials & Supplies
19,064
16,132
18,478
24,000
32.8%
Total Mayor & Council
$808,090
$558,609
$630,315
$817,063
31.6%
Highlights
There were no items of interest to highlight for the period ending September 30, 2020, for the Mayor and Council
departments.
Administration
000 Unassigned
Expenditures
Materials & Supplies
353,471
360,600
364,934
366,600
1.6%
130 Admin
Expenditures
Salaries, Wages & Benefits
409,480
438,967
463,195
594,903
26.2%
Materials & Supplies
21,371
6,257
29,702
59,700
89.5%
Contracted Services
31,472
37,251
68,802
90,000
58.6%
170 Communication
Revenue
User Charges
(40,185)
(15,809)
(38,709)
(45,000)
64.9%
Expenditures
Salaries, Wages & Benefits
443,708
434,657
500,029
645,631
32.7%
Materials & Supplies
74,409
70,078
91,336
124,400
43.7%
Contracted Services
71,235
41,914
80,780
102,725
59.2%
171 Tourism
Revenue
User Charges
(22,080)
Expenditures
Salaries, Wages & Benefits
168,386
176,505
189,185
244,544
27.8%
Materials & Supplies
49,024
36,393
62,735
80,750
54.9%
Contracted Services
18,312
4,084
25,294
32,085
87.3%
385 Environmental
Revenue
Highlights
Administration
There was an overall reduction in expenses as office work adapted to COVID-19 restrictions. Many of the office expense
accounts are lower than is typical for this quarter (i.e. Printing, Office Supplies, Postage & Courier, etc.) with employees
working from home.
Tourism
The Tourism Office was closed to the public due to COVID-19 at the end of the first quarter. As a result, many of their
expenses are lower than expected for this period. Special events were cancelled, and the distribution of the maps was put
on hold as all travel centers in Ontario were closed with the pandemic.
Legal Services
Highlights
There were no items of interest to highlight for the period ending September 30, 2020 for Legal Services.
Corporate Services
130 Admin
Revenue
User Charges
(12,759)
(10,488)
(400)
(12,000)
12.6%
Expenditures
Materials & Supplies
151,632
128,835
157,082
224,850
42.7%
160 HR/Payroll
Expenditures
Salaries, Wages & Benefits
1,215,814
1,224,711
1,292,838
1,542,249
20.6%
Materials & Supplies
6,220
3,119
5,936
6,600
52.7%
Contracted Services
56,073
34,582
45,285
81,500
57.6%
Rents/Financial Expenses
84,793
71,080
97,497
130,000
45.3%
162 IT
Expenditures
Salaries, Wages & Benefits
997,540
1,002,735
1,101,440
1,417,707
29.3%
Materials & Supplies
5,608
1,471
4,350
5,000
70.6%
Contracted Services
7,156
2,852
6,154
15,000
81.0%
Transfers from RES / RF / CAP Fund
110,000
670,500
670,500
670,500
Reclass: CF (NON-TCA) to GF
379,340
478,926
357,651
437,500
(9.5%)
163 Purchasing
Expenditures
Salaries, Wages & Benefits
456,386
458,533
489,678
632,025
27.5%
Materials & Supplies
2,505
2,164
3,743
4,890
55.7%
165 Health & Safety
Expenditures
Highlights
Information Technology (IT)
Deferred expense entries have not yet been processed, which explains the overage of 9.5% in the table above.
Human Resources/Payroll
Legal expenses continue to be less than expected due to a general reduction in grievances. Upcoming CUPE
negotiations may result in the use of these funds.
Legislative Services (Clerk's Department)
000 Unassigned
Revenue
User Charges
130 Admin
Revenue
User Charges
Expenditures
Salaries, Wages & Benefits
Materials & Supplies
Contracted Services
Transfers from RES / RF / CAP Fund
190 Animal Services
Revenue
User Charges
Expenditures
Salaries, Wages & Benefits
Materials & Supplies
Contracted Services
Transfers from RES / RF / CAP Fund
191 Municipal Law Enforcement
Revenue
User Charges
Fines/Penalties on Interest
Expenditures
(200) (200) 100.0%
(93,797) (73,560) (101,690) (118,800) 38.1%
813,574
1 710,469
900,391
1,163,744
38.9%
54,874
49,406
67,922
93,910
47.4%
12,078
15,213
10,416
10,800
(40.9%)
15,000
19,500
19,500
19,500
(74,567)
(76,251)
(62,772)
(87,800)
13.2%
295,524
275,935
335,925
433,420
36.3%
37,206
35,305
40,941
65,825
46.4%
36,887
49,398
34,006
55,000
10.2%
9,157
8,429
7,000
7,000
(20.4%)
(36,124)
(11,820)
(25,432)
(28,000)
57.8%
(22,290)
(13,777)
(17,156)
(25,000)
44.9%
Salaries, Wages & Benefits
476,835
536,839
655,075
845,402
36.5%
Materials & Supplies
10,519
9,361
25,156
33,700
72.2%
Contracted Services
42,817
17,872
37,023
54,100
67.0%
192 Parking Enforcement
Revenue
User Charges
(114,497)
(33,736)
(61,763)
(80,000)
57.8%
Fines/Penalties on Interest
(320,830)
(92,509)
(178,822)
(250,000)
63.0%
Expenditures
Salaries, Wages & Benefits
259,003
280,922
312,606
409,462
31.4%
Materials & Supplies
7,446
9,110
13,306
24,840
63.3%
Contracted Services
6,040
3,933
7,070
10,000
60.7%
Rents/Financial Expenses
8,316
5,062
6,980
10,000
49.4%
Transfers from RES / RF / CAP Fund
435,327
126,245
330,000
330,000
61.7%
193 Election
Revenue
User Charges
529
Expenditures
Salaries, Wages & Benefits
271
Materials & Supplies
1,721
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
(12,474)
(6,758)
(9,940)
(22,000)
69.3%
250 Contributions
Highlights
Council Services (Administration)
Council Services revenues are down due to COVID-19 except for Commissioning/Certification and Licencing revenue.
$25,000 for the Uber license was collected which accounts for the actual to budget variance in revenue. Increases will be
made for the 2021 budget.
The Records Management Summer Student position was extended to work part-time until mid -October, which will
increase the actuals in the Wages Temporary Part -Time account. There will be budget capacity for this addition.
The Professional Fees account is over budget by 46% due to the high (and unanticipated) investigations' costs (i.e.
Integrity Commissioner).
Animal Services
The Animal Disposal expense account is expected to go over budget, as at the end of the third quarter it only has 3% of
the budget remaining. However, these expenses are offset by increased revenues in the Animal Disposal Revenue
account.
Fleet
General repair and maintenance on the 2013 Equinox put one of the fleet accounts over budget for that vehicle. There
was an accident with the 2018 Chevy Cruz, which incurred costs for the repair that was unbudgeted.
Parking Enforcement
Fines and Meter revenue is lower than expected for the period ending September 30, 2020, due to the refocus of officer
duties and leniency provided throughout the pandemic from the beginning of the second quarter to the middle of the third
quarter.
The Small Equipment Purchases account is over budget by 34% with the purchase of a mobile printer for the MLEO
offices. There is a potential cost recovery for part of this expense from OPG.
Cemetery
Cemetery revenue for Bondhead Cemetery has exceeded the budget by 75% at the end of the third quarter.
There are currently no sales for the Hampton columbarium, putting this revenue account underbudget for the period
ending September 30, 2020. Construction on the columbarium was initially delayed due to COVID-19, but it is now
complete, and the results of the opening of the sale for the niches will be seen in the final quarter.
Financial Services and Unclassified Administration
000 Unassigned
Revenue
Fines/Penalties on Interest
(14,359)
(28,525)
(8,195)
(13,000)
(119.4%)
130 Admin
Revenue
User Charges
(179,175)
(171,935)
(148,970)
(178,000)
3.4%
Fines/Penalties on Interest
(1,003,298)
(834,325)
(884,762)
(1,250,000)
33.3%
140 Internal Audit
Expenditures
Salaries, Wages & Benefits
111,335
117,766
151,831
26.7%
Materials & Supplies
300
300
100.0%
210 Finance Admin
Expenditures
Salaries, Wages & Benefits
1,696,225
1,680,396
1,869,300
2,411,937
30.3%
Materials & Supplies
77,695
67,694
90,431
106,400
36.4%
Contracted Services
57,492
69,358
31,436
49,000
(41.5%)
211 Unclassified Admin
Revenue
User Charges
(479)
Expenditures
Materials & Supplies
240,827
154,359
313,943
405,900
62.0%
Contracted Services
1,197,696
656,075
1,155,332
1,285,600
49.0%
Rents/Financial Expenses
343,100
123,701
182,012
205,000
39.7%
Transfers from RES / RF / CAP Fund
4,077,547
2,502,842
812,225
812,225
(208.1 %)
Highlights
Unassigned
Accounts receivable fines and penalties on interest are higher than budgeted and higher than the same period in 2019.
Investement income is still down this quarter due to decreased interest rates from COVID-19 market impacts.
Finance Admin
The legal fees account continues to be over budget due to the increased involvement of the 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 Transfers from Reserve and Reserve Fund account looks to be over budget by a significant value but that includes
the 2019 Operating Surplus entry, which is not assumed at the time of the budget creation. The 2019 surplus transfer is
about 54% less than the 2018 transfer; this decrease was primarily driven by a decrease in the equity share of net income
— from Veridian Corporation of $1.2 million stemming from one-time costs related to the merger of Veridian and Whitby
Hydro, lower building permit revenue in 2019 of $1 million due to decreased developer activities, and higher sand and salt
costs of $0.7 million. These were partly offset by lower transfers to reserve funds of $0.9 million related to Building
Inspection, lower operating costs of $0.2 million associated with the closing of concessions stands at community facilities
and various other operating savings in 2019 totalling $0.3 million.
Emergency Services
130 Admin
Revenue
User Charges
(179,439)
(299,029)
(78,047)
(105,000)
(184.8%)
Expenditures
Salaries, Wages & Benefits
668,951
697,670
735,673
940,149
25.8%
Materials & Supplies
140,539
103,014
178,529
239,650
57.0%
External Transfers to Others
10,000
6,250
10,000
10,000
37.5%
Transfers from RES / RF / CAP Fund
661,150
584,915
553,925
553,925
(5.6%)
280 Fire Prevention
Revenue
User Charges
(45,930)
(10,100)
(43,687)
(45,000)
77.6%
Expenditures
Salaries, Wages & Benefits
472,849
519,910
568,338
735,643
29.3%
Materials & Supplies
28,052
5,879
33,237
46,500
87.4%
Contracted Services
92,700
92,700
100.0%
281 Fire Suppression
Expenditures
Salaries, Wages & Benefits
5,665,696
6,018,530
6,553,190
8,443,560
28.7%
Materials & Supplies
31,609
34,126
55,680
92,500
63.1 %
Contracted Services
42,482
50,050
43,053
70,000
28.5%
282 Fire Training/Technical Support
Expenditures
Salaries, Wages & Benefits
262,458
275,717
272,939
350,680
21.4%
Materials & Supplies
3,409
3,213
3,687
6,500
50.6%
1•
2020
2020
2020
2020•,
Budget
Budget',
283 Fire Communication
Expenditures
Contracted Services
423,876
477,837
511,900
587,000
18.6%
284 Fire Mechanical
Expenditures
Materials & Supplies
75,345
49,652
76,298
120,000
58.6%
285 All Stations - P/T Admin
Expenditures
Salaries, Wages & Benefits
637,886
565,987
667,214
867,380
34.7%
Materials & Supplies
23,979
34,743
31,420
45,700
24.0%
Contracted Services
3,759
2,290
4,969
6,500
64.8%
286 Municipal Emergency Measures
Revenue
User Charges
(10,000)
(10,000)
(10,000)
100.0%
Expenditures
Materials & Supplies
20,583
20,280
20,950
26,950
24.7%
Contracted Services
287 Mechanical Technical Support
Expenditures
Salaries, Wages & Benefits
95,362
98,352
105,217
135,524
27.4%
Total Emergency Services - Fire
$9,032,616
$9,239,286
$10,387,185
$13,210,861
30.1%
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.
Transfers to the Reserve and Reserve Fund category look to be over budget however this is where the transfers of the
Emergency Call revenue is transferred to the Reserve Fund. In previous years, this revenue was an unbudgeted item.
Engineering Services
000 Unassigned
Revenue
User Charges
(211)
(300)
(500)
(500)
40.0%
130 Admin
Revenue
User Charges
(278,304)
(133,284)
(47,946)
(50,500)
(163.9%)
Expenditures
Salaries, Wages & Benefits
1,703,836
1,669,809
1,949,710
2,513,421
33.6%
Materials & Supplies
26,519
20,791
27,776
53,950
61.5%
Contracted Services
70,297
155,478
110,124
150,250
(3.5%)
Debt Services (Principle and 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
(1,637,845)
321 Building Inspections
Revenue
User Charges
(1,693,444)
(1,813,692)
(1,199,509)
(1,554,032)
(16.7%)
Fines/Penalties on Interest
(500)
(500)
100.0%
Expenditures
Salaries, Wages & Benefits
917,623
859,821
1,028,887
1,329,648
35.3%
Materials & Supplies
55,499
35,325
64,439
102,930
65.7%
Contracted Services
100,906
4,752
151,762
199,000
97.6%
324 Street Lighting
19
2020
2020
2020
2020•,
Budget
• • -
' ,
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
636
10,000
93.6%
Transfers from RES / RF / CAP Fund
1,100
327 Parking Lots
Expenditures
Debt Services (Principle and Interest paid)
(13,284)
(14,990)
330 Roads & Structures
Expenditures
Contracted Services
9,512
8,245
21,000
100.0%
334 Safe Roads
Expenditures
Materials & Supplies
201
2,049
200
13,500
84.8%
Contracted Services
12,806
21,308
19,777
50,000
57.4%
380 Road Maintenance
Expenditures
Contracted Services
39,326
6,500
6,500
100.0%
388 Fleet
Expenditures
Materials & Supplies
1,498
2,366
2,212
5,600
57.8%
Total Engineering Services
$5,152,400
$3,188,712
$6,110,713
$6,910,720
53.9%
Highlights
Administration
Contracted Services have Studies rolled up into these categories, but there is no budget for 2020. This makes it look like
the category is over budget, but it is not.
Consulting expenses are low for the period ending September 30, 2020. Subdivision lighting review is being done in-
house this year with fewer complicated subdivisions, reducing external consultants costs. This account will likely be under
budget this year.
Roads and Structures
Consulting expenses are anticipated for the next quarter. The estimate for the work will likely have this account coming in
under budget.
Building Inspections
As a result of COVID-19, an increase in building and pool permits revenue has been realized as people were spending
more on improving their homes/yards.
The Builiding Division also saw a reduction in expenses with the restriction from COVID-19. Many of the office expense
accounts are lower than is typical for this quarter (i.e. Printing, Professional Fees, etc.)
Operations
000 Unassigned
Revenue
User Charges
(204,512)
(16,517)
(195,115)
(208,800)
92.1%
Expenditures
Salaries, Wages & Benefits
1,807
690
2,730
3,000
77.0%
Materials & Supplies
78,562
52,355
57,689
107,400
51.3%
Contracted Services
(1,402)
2,854
2,274
3,000
4.9%
130 Admin
Revenue
User Charges
(62,107)
(51,104)
(89,840)
(125,000)
59.1%
Expenditures
Salaries, Wages & Benefits
1,836,137
1,690,269
1,828,773
2,361,020
28.4%
Materials & Supplies
55,276
48,557
54,231
74,700
35.0%
Contracted Services
2,745
9,280
11,000
11,000
15.6%
Transfers from RES / RF / CAP Fund
2,305,000
2,753,100
2,746,100
2,746,100
(0.3%)
250 Contributions
Revenue
Transfer between Funds
(13,017)
324 Street Lighting
Revenue
User Charges
(2,212)
(1,359)
(7,321)
(15,000)
90.9%
Expenditures
Materials & Supplies
560,076
444,088
784,191
1,050,000
57.7%
Contracted Services
195,114
127,323
231,890
330,000
61.4%
Debt Services (Principle and Interest paid)
(19,745)
(22,281)
325 Parks
Expenditures
Salaries, Wages & Benefits
657,837
788,977
889,977
1,151,057
31.5%
Materials & Supplies
389,691
388,584
378,860
515,750
24.7%
Contracted Services
464,406
681,839
928,749
1,205,760
43.5%
Rents/Financial Expenses
25,283
41,528
26,171
30,000
(38.4%)
Transfers from RES / RF / CAP Fund
100,000
225,000
225,000
225,000
326 Cemetery
Revenue
User Charges
(121,858)
(101,233)
(112,504)
(143,000)
29.2%
Expenditures
Salaries, Wages & Benefits
120,563
126,101
175,149
225,854
44.2%
Materials & Supplies
91,573
110,698
67,636
95,700
(15.7%)
Transfers from RES / RF / CAP Fund
50,000
5,000
5,000
5,000
350 Waste Collection
Revenue
User Charges
(21,575)
(6,183)
(16,260)
(22,500)
72.5%
Expenditures
Materials & Supplies
22,500
12,830
18,153
22,500
43.0%
351 Recycling Collection
Revenue
User Charges
(2,290)
(439)
(1,235)
(1,500)
70.7%
Expenditures
Materials & Supplies
2,547
385
1,500
1,500
74.3%
370 Building & Property Service
Expenditures
Salaries, Wages & Benefits
703,442
628,284
766,372
992,159
36.7%
Materials & Supplies
352,902
325,582
331,005
549,265
40.7%
Contracted Services
127,984
71,029
97,563
139,825
49.2%
Debt Services (Principle and 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
380 Road Maintenance
Revenue
User Charges
(18,624)
(18,993)
(15,871)
(19,500)
2.6%
Expenditures
Salaries, Wages & Benefits
600,827
438,983
492,905
597,700
26.6%
Materials & Supplies
653,596
514,194
495,071
846,275
39.2%
Contracted Services
386,769
263,233
538,747
785,700
66.5%
381 Hardtop Maintenace
Expenditures
Salaries, Wages & Benefits
256,134
314,403
336,816
429,000
26.7%
Materials & Supplies
208,194
432,382
248,471
456,100
5.2%
Contracted Services
37,139
70,983
68,500
160,000
55.6%
382 Isetop Maintenance
Expenditures
Salaries, Wages & Benefits
41,112
32,661
53,975
72,500
55.0%
Materials & Supplies
125,752
142,587
135,396
342,000
58.3%
383 Winter Control
Revenue
User Charges
(78,500)
(4,832)
(86,590)
(90,000)
94.6%
Expenditures
Salaries, Wages & Benefits
822,207
634,411
686,428
963,250
34.1 %
Materials & Supplies
1,917,937
1,326,771
1,333,590
2,010,000
34.0%
384 Safety Devices
Expenditures
Salaries, Wages & Benefits
149,860
156,019
139,397
188,000
17.0%
Materials & Supplies
203,810
170,214
166,273
349,400
51.3%
Contracted Services
242
50,000
50,000
100.0%
386 Storm Water Management
Expenditures
Salaries, Wages & Benefits
3,505
7,044
9,677
20,000
64.8%
Materials & Supplies
1,654
2,559
1,800
8,000
68.0%
Contracted Services
14,231
92,000
92,000
84.5%
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
(1,132,075)
(1,162,626)
Expenditures
Salaries, Wages & Benefits
391,646
470,413
618,169
766,037
38.6%
Materials & Supplies
916,872
688,732
61,747
92,000
(648.6%)
Transfers from RES / RF / CAP Fund
134,500
185,000
185,000
185,000
440 Libraries
Expenditures
Materials & Supplies
2,073
894
1,822
4,450
79.9%
Highlights
Unassigned
Unfortunately, the revenues are still low for sports field rentals due to COVID-19 restrictions.
Administration
Miscellaneous expenses have gone over budget by 35% at the end of the 3rd quarter. The overage is attributable to
COVID-19 related expenses.
Safety Devices
The special event budget has not been used due to the cancellation of events to reduce the risks of COVID-19.
Parks
Fleet allocation for Parks increased as staff had to be assigned to individual vehicles due to COVID. Under normal
operations crews would be assigned to ride together.
The Parks Rental account is for the rental and cleaning of portable toilets in Parks, and due to COVID there was an
increase in cleaning costs.
Cemetery
Fleet allocation for Cemeteries increased as staff had to be assigned to individual vehicles due to COVID. Under normal
operations crews would be assigned to ride together.
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 generally seen by the end of the third 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, fleet revenues offset this account's expenses.
Community Services
130 Admin
Revenue
User Charges
(43,354)
(14,027)
(33,800)
(63,500)
77.9%
Expenditures
Salaries, Wages & Benefits
665,404
524,392
743,107
958,743
45.3%
Materials & Supplies
39,693
17,102
45,865
69,070
75.2%
Contracted Services
15,173
Transfers from RES / RF / CAP Fund
735,150
809,943
816,700
816,700
0.8%
250 Contributions
Revenue
Transfer between Funds
(1,616,352)
420 Recreation Services Admin
Revenue
User Charges
(2,745)
(178)
(1,168)
(1,230)
85.5%
Expenditures
Salaries, Wages & Benefits
650,938
561,739
793,922
1,020,506
45.0%
Materials & Supplies
15,849
11,260
18,818
26,942
58.2%
421 Facilities
Revenue
User Charges
(1,412,165)
(824,276)
(1,475,328)
(2,357,646)
65.0%
Expenditures
Salaries, Wages & Benefits
2,469,641
2,183,619
2,790,975
3,604,093
39.4%
Materials & Supplies
1,858,410
1,509,646
1,790,568
2,641,186
42.8%
Contracted Services
116,007
93,466
113,684
157,434
40.6%
Debt Services (Principle and Interest paid)
2,031,328
1,906,828
1,904,315
1,957,836
2.6%
423 Concessions
Revenue
User Charges
(26,333)
(7,457)
(40,418)
(66,140)
88.7%
Expenditures
424 Aquatic Programs
Revenue
User Charges
(1,108,346)
(287,377)
(1,105,421)
(1,172,741)
75.5%
Expenditures
Salaries, Wages & Benefits
587,941
270,538
703,537
912,481
70.4%
Materials & Supplies
32,172
10,373
40,209
61,830
83.2%
425 Fitness Programs
Revenue
User Charges
(394,568)
(216,552)
(407,645)
(532,295)
59.3%
Expenditures
Salaries, Wages & Benefits
233,264
1101488
280,390
364,173
69.7%
Materials & Supplies
10,412
4,904
17,814
28,850
83.0%
Rents/Financial Expenses
1,050
1,235
2,000
100.0%
426 Recreation Programs
Revenue
User Charges
(529,042)
(99,062)
(543,866)
(566,015)
82.5%
Expenditures
Salaries, Wages & Benefits
406,880
164,711
387,327
501,408
67.2%
Materials & Supplies
67,885
6,236
65,940
68,830
90.9%
Contracted Services
28,173
13,838
28,169
47,300
70.7%
Rents/Financial Expenses
904
173
2,422
2,800
93.8%
427 Community Development
Revenue
User Charges
(180,528)
(114,105)
(186,726)
(191,903)
40.5%
Expenditures
Salaries, Wages & Benefits
3,261
165
6,426
8,448
98.0%
Materials & Supplies
146,183
94,368
163,576
197,675
52.3%
Contracted Services
23,791
18,914
30,000
34,700
45.5%
428 55+ Active Adults
Revenue
User Charges
(102,152)
(43,611)
(130,689)
(162,231)
73.1%
Expenditures
Salaries, Wages & Benefits
77,268
40,470
110,172
142,812
71.7%
Materials & Supplies
17,682
7,819
16,730
25,400
69.2%
Contracted Services
9,438
3,665
9,903
16,550
77.9%
Rents/Financial Expenses
560
3,000
3,000
100.0%
429 Customer Service
Revenue
1•
2020
2020
2020
2020•,
User Charges
(13,340)
(19,589)
(12,610)
(15,675)
(25.0%)
Expenditures
Salaries, Wages & Benefits
654,584
438,122
714,534
926,556
52.7%
Materials & Supplies
100,397
52,289
97,234
132,736
60.6%
450 Client Services
Expenditures
Salaries, Wages & Benefits
262,134
276,895
345,017
444,740
37.7%
Materials & Supplies
6,374
1,585
8,992
12,840
87.7%
473 Community Grant Program
Expenditures
External Transfers to Others
60,000
56,350
60,000
60,000
6.1 %
480 Municipal Sponsorships
Expenditures
External Transfers to Others
31,300
20,400
35,000
35,000
41.7%
Total Community Services
$7,546,673
$5,967,712
$8,207,910
$10,153,263
41.2%
Highlights
Administration
With the reopening of facilities and the commencement of programs, Community Services expected to see improvement
in revenues in the third quarter. Revenues continue to be lower than what is typical for this quarter with the continual
impact of COVID-19. The 2020 budgeted revenues for the department will not be achieved by year-end.
Planning Services
000 Unassigned
Expenditures
Salaries, Wages & Benefits
264,448
135,783
337,377
438,591
69.0%
Materials & Supplies
16,620
32,427
119,498
238,750
86.4%
Transfers from RES / RF / CAP Fund
696,728
634,717
634,717
634,717
130 Admin
Revenue
User Charges
(441,429)
(406,796)
(684,619)
(862,300)
52.8%
Expenditures
Salaries, Wages & Benefits
2,164,982
2,110,810
2,442,381
3,145,792
32.9%
Materials & Supplies
54,755
32,598
62,715
114,750
71.6%
Contracted Services
86,576
3,343
12,765
186,000
98.2%
Transfers from RES / RF / CAP Fund
12,500
12,500
12,500
12,500
250 Contributions
Revenue
Transfer between Funds
(123,695)
385 Environmental
Revenue
User Charges
(585)
(585)
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 for the period ending September 30, 2020 for Planning Services.
Looking forward to the 4th Quarter
2020 Year End Financial Reporting (FS and FIR)
Over the next few months, Financial Services begins the
preparation of the final audited statements for the end of
2020. The statements will not be complete until the
second quarter of 2021. They will be sent to the Audit
Committee for review and approval.
Continuous Improvement/Key Performance
Indicators
As this report is continually evolving and improving, we
hope the subsequent quarterly reports will include
upcoming continuous improvements within the
Municipality and focus on key performance financial
indicators that will be used to benchmark existing service
levels.