HomeMy WebLinkAboutFCS-13-032 - 2012 Year End Variance Report
F
REPORT TO:inance and Corporate Services Committee
DATE OF MEETING: March 18, 2013
Ryan Hagey, Director of Financial Planning
SUBMITTED BY:
Debra Fagerdahl, Manager of Financial Planning
PREPARED BY:
All
WARD(S) INVOLVED:
March 5, 2013
DATE OF REPORT:
FCS-13-032
REPORT NO.:
2012 Year End Variance Report
SUBJECT:
R
ECOMMENDATION:
For information.
BACKGROUND:
This is the third and final report to Council regarding the City
budget. The report and attached schedules include information re
tax supported services
·
rate supported enterprises/utilities, and
·
City of Kitchener investments
·
REPORT:
The tax supported budget and a number of enterprises ended the y
These results were a factor of many things including reduced spe
weather conditions, and savings in capital programs.
Operating Fund Tax-Base (Schedule 1)
Before considering capital closeouts, the City ended the year wi
$513,000 which equates to 0.33% on an operating expenditure budge
deficit, in October, 2012 it was determined that capital closeou
operating budget. There was $567,000 of capital closeouts avail
operating budget, which resulted in a net surplus of $54,000. T
Winter Control Reserve Fund in accordance with City policy.
Significant variances (over $200,000) are summarized below. Add
Schedule 1 for variances that exceed $50,000 and/or 10% of budge
Significant Projected Variances (over $200,000)
Community Services Department:
By-law Enforcement - Parking/Noise had a deficit of $339,000. T
·
caused by fine revenues failing to meet budget, which was identi
2 - 1
potential deficit through both the 2012 and 2013 budget processe
process, an additional $117,000 was provided to reduce the defici
Finance & Corporate Services Department:
Information Technology had a deficit of $307,000 related to ret
·
from job evaluations. The job evaluation system upholds the Cit
legislation. Prior to the retroactive adjustments, IT had a sur
was not finalized until after budget day and will also result in
the 2013 budget did not include the revised salary costs for the
Infrastructure Services Department:
Operations Administration had a deficit of $430,000 at year e
·
a number of factors including vehicle supplies, downtown garbage
than budgeted recoveries from the Region of Waterloo due to the
Operations Sportsfields, Trails & Parks had a deficit of $316
·
activity related to early start to the 2012 season. Higher than
also contributed to the deficit, but was corrected in the 2013 b
Operations Winter Maintenance ended the year with a surplus o
·
favourable weather conditions in the winter months. As there wa
engaged in winter maintenance activities, they were assigned to
Operations which has caused those areas to be over budget.
General Expenses:
Other expenses had a deficit of $929,000 resulting from the acc
·
which was related to matters previously discussed in caucus.
Gapping revenues had a surplus of $374,000 due to an increased
·
throughout the year, including a number of senior positions.
Tax Write-offs and Rebates had a deficit of $224,000 as vacancy
·
impacted by economic cycles, continue to trend higher than budge
General Revenues:
Supplementary taxes had a deficit of $409,000 as a result of un
·
industrial sector.
Investment income had a surplus of $368,000 due to higher than
·
average investment balances.
Capital Closeouts
As per Council direction, tax supported capital closeouts have b
A listing of capital closeout entries is provided in the table be
2 - 2
Tax Supported Capital Closeouts in 2012
DeptDivisionAccount NameAmount
TOTAL (567,659)
Building Enterprise (Schedule 2)
The Building Enterprise ended the year with a deficit of $1,000,
b
udgeted surplus of $607,000. The deficit was largely due to low
down $845,000 compared to budget, which correlates with decrease
Expenses are also less than budgeted, by $236,000, largely due t
vacant positions throughout 2012.
Golf Courses (Schedule 3)
Overall, the golf courses came in slightly better than budget wi
e
xpenses in course operations were higher than budgeted due to ea
weather conditions in 2012.
Parking Enterprise (Schedule 4)
The Parking Enterprise has a deficit of $394,000, which was bett
$464,000 by $70,000. Parking revenues fell short of budget by $7
opening at the Civic District garage and lower than budgeted use
The revenue shortfall was somewhat offset by savings in expenses
well as lower than budgeted costs for snow clearing due to a mil
capital were under budget by $301,000 due to closeouts from prev
Water Utility and Sanitary Sewer Utility (Schedules 5 and 6)
The Water Utility posted a surplus of $1.6M, which exceeded the
$894,000. Sale of water revenues were down by $208,000 due to le
for water supply purchases from the Region were down by $1.0M.
2 - 3
budget as savings in administrative expenses were offset by over
distribution costs. Finally, transfers to capital were under bu
previously approved projects.
The Sanitary Sewer Utility experienced a surplus of $2.1M, which
$2.6M by $438,000. Sewer surcharge revenues were under budget b
usage, while processing costs from the Region were higher than b
weather in the last quarter which led to excessive inflow and in
than budget by $180,000 due to increased volumes for cross borde
budget by $231,000 largely due to sewer rebate expenses and sewe
budget by a combined $265,000.
Storm Sewer Utility (Schedule 7)
The Storm Sewer Utility ended the year at a surplus of $239,000
b
udgeted deficit of $284,000. The largest single factor related
were significantly under budget based on closeouts from previous
Offsetting a portion of this positive variance were revenues bei
to a contingent revenue item relating to the School Boards and h
expenses related to additional storm sewer repair and maintenanc
Gas Utility (Schedule 8)
Gas Delivery revenue over expenses was $13.6M which was $3.1M be
$10.5M. Gas consumption overall was lower than budgeted due to m
higher than budgeted because the mix of gas sold in the tiered r
the utilitys benefit, and the benchmark transportation rate exc
Delivery were higher than budget due to an increase in the cost
reduction in volume.
Gas Supply had lower than anticipated volumes and lower than bud
surplus of $406,000 compared with a budgeted surplus of $2.2M.
Investment Report (Schedule 9)
All investments made were in accordance with the Citys investme
below the standard required for that investment during the year.
averaged 1.60% in 2012, which was up from 1.48% in 2011. As wel
balances were slightly higher than in 2011. Combined, these two
investment income for the City in 2012.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
This reporting falls within the Efficient and Effective Governme
Strategic Plan. It helps support the financial goal of ensuring
finances.
FINANCIAL IMPLICATIONS:
Financial implications are discussed above and detailed in the a
COMMUNITY ENGAGEMENT:
N/A
Dan Chapman, Deputy CAO (Finance and Corporate Services)
ACKNOWLEDGED BY:
2 - 4
2 - 5
2 - 6
2 - 7
2 - 8
2 - 9
2 - 10
2 - 11
2 - 12
2 - 13
2 - 14
2 - 15
2 - 16
2 - 17
2 - 18
2 - 19