HomeMy WebLinkAboutFCS-16-030 - 2015 Year-End Variance Report
REPORT TO: Finance and Corporate Services
DATE OF MEETING: March 7, 2016
SUBMITTED BY: Ryan Hagey, Director of Financial Planning
519-741-2200 Ext 7353
PREPARED BY: Debra Fagerdahl, Manager of Financial Planning
519-741-2200 Ext 7114
WARD(S) INVOLVED: All
DATE OF REPORT: February 22, 2016
REPORT NO.: FCS-16-030
SUBJECT: 2015 Year-End Variance Report
________________________________________________________________
RECOMMENDATION:
For Information
BACKGROUND:
This is the third and final report to Council regarding the City
the 2015 budget. The report and attached schedules include infor
tax supported services
·
rate supported enterprises/utilities, and
·
supplementary information related to investment income
·
REPORT:
Overall, the City ended 2015 with results that were within 1% of
contributors to an overall small net positive variance were the
enterprise, and Tax supported operations. Year-end positions fo
summarized in the table on the following page.
*** This information is available in accessible formats upon req
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
IF2 - 1
2015 Summary Results
($000's)
Two examples are provided below to assist in interpreting the 2015
The first line of the table shows that Tax Supported Operations
·
surplus of $981,000 on budgeted expenses of $164,558,000, which
variance of 0.60% of total expenses.
The bottom line of the table shows that Total City Operations en
·
surplus of $3,849,000 on budgeted expenses of $363,908,000, whic
variance of 1.06% of total expenses.
Additional details about tax supported operations and the enterp
balance of the report.
Operating Fund Tax Base (Schedule 1)
The City ended the year with an operating surplus of $981,000 in t
This equates to a 0.60% positive variance from the operating exp
The surplus in tax supported operations was transferred to the T
Fund, which ended the year with a balance of $1.8M. The Tax Sta
is still well below its minimum target balance of $5.4M. It is
year since 2006 that tax-supported operations have yielded a sur
Significant variances (over $200,000) are summarized below. Addi
identifying the primary factor contributing to variances that ex
the budget are included in Schedule 1.
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Significant Variances (over $200,000)
Infrastructure Services Department:
Operations Administration had a deficit of $372,000 largely d
·
professional services and increased costs related to Regional wo
Operations Region had a surplus of $367,000 due to increased
·
additional winter maintenance work. Some costs related to the Re
other areas of the Operations budget, like Administration, and c
offsetting deficit in those areas.
Operations Road Maintenance had a deficit of $229,000 due to
·
road patches required.
Operations Sportsfields, Trails & Parks had a deficit of $274
·
start to the repair season and an overage in the water budget.
Operations Winter Maintenance had a surplus of $428,000 due t
·
snow/ice at year-end. This surplus was transferred to the Winter
per policy.
General Expenses:
General Expenses Other had a deficit of $228,000 due to legal
·
of budget.
Gapping had a deficit of $301,000 due to actual staffing costs
·
budget than in prior years.
General Revenue:
Payments in Lieu (PIL) had a surplus of $827,000 due retroactiv
·
assessments on the Regions new transit facility, the Kitchener
and the Central Library parking lots.
Investment Income had a surplus of $466,000 due to higher inves
·
balances.
Penalties and Interest had a surplus of $211,000 due to higher
·
Sundry Income had a surplus of $393,000 due to Ice Strom Assist
·
funding.
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Building Enterprise (Schedule 2)
2015 Summary Results
($000's)
The Building Enterprise had a surplus of $949,000 which was bett
deficit of $783,000. The positive variance was largely due to hi
all sectors except for high rise apartment building.
Golf Courses (Schedule 3)
2015 Summary Results
($000's)
The Golf Enterprise broke even which is very close to the small
$25,000.
Parking Enterprise (Schedule 4)
2015 Summary Results
($000's)
The Parking Enterprise had a surplus of $511,000, which was more
surplus of $77,000. The positive variance was largely due to inc
owned parking facilities at City Hall, Grand River Hospital and
lower than forecasted taxes for the Civic District parking garag
Water Utility (Schedule 5)
2015 Summary Results
($000's)
The Water Utility had a deficit of $2.2M, which was worse than t
$29,000. The variance was due to lower than expected consumption
expected water main breaks (water not billed and increased repai
IF2 - 4
Sanitary Sewer Utility (Schedule 6)
2015 Summary Results
($000's)
The Sanitary Sewer Utility had a deficit of $531,000 which was m
$176,000. The variance was due to lower than expected consumpti
with the Water Utility. The negative variance was offset by lowe
and repair costs.
Storm Sewer Utility (Schedule 7)
2015 Summary Results
($000's)
The Storm Sewer Utility had a surplus of $243,000 which was more
surplus of $137,000 largely due to higher than expected growth.
Gas Utility (Schedule 8)
2015 Summary Results
($000's)
Gas Delivery was largely on budget with a small positive varianc
Programs had a surplus of $725,000 primarily due to rental water
than expected. This surplus was offset by gas delivery sales bei
to the warmer weather at the end of 2015 and higher than expecte
inventory management.
Gas Supply had a surplus of $7.5M which is more than the budgete
was largely due to the price of gas being lower than budgeted, b
consumption due to the warm weather at the end of 2015. This sur
was considered when establishing gas supply prices in November o
the surplus will be returned to customers through a lower supply
Gas Transportation had deficit of $1.2M which was worse than the
$69,000. This was largely due higher than expected gas transport
IF2 - 5
Investment Report (Schedule 9)
All investments made were in accordance with the Citys investme
investment yields have averaged 1.47%, and average short term in
remained high. Investment income had a surplus of $466,000.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievemen
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
Financial implications are discussed above and detailed in the a
COMMUNITY ENGAGEMENT:
Inform This report has been posted publicly as part of the age
Dan Chapman, Deputy CAO (Finance and Corporate Services)
ACKNOWLEDGED BY:
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