HomeMy WebLinkAboutFIN-2021-40 - June 2021 Variance ReportStaff Report
REPORT TO: City Council
DATE OF MEETING: 8/23/2021
www. kitchener ca
SUBMITTED BY: Ryan Hagey, Director of Financial Planning & Reporting
PREPARED BY: Debbie Andrade, Manager of Budgets
WARD(S) INVOLVED: All Wards
DATE OF REPORT: August 6, 2021
REPORT NO.: FIN -2021-40
SUBJECT: June 2021 Variance Report
RECOMMENDATION:
For information.
REPORT HIGHLIGHTS:
• The purpose of this report is to provide an update on financial results for City operations.
• Tax supported operations are projecting a deficit of $6.7M, largely due to COVID-19.
This size of deficit is to be expected based on the ongoing nature of the pandemic.
• The City is well positioned to fund any deficits due to COVID-19 by funding provided by
the Federal and Provincial governments in 2020 and 2021, and will not require a draw
from the City's stabilization reserves.
• This report supports the delivery of core services.
BACKGROUND:
This is the first variance report to Council regarding the City's financial performance versus
the 2021 budget. The report and attached schedules include information regarding:
• Tax supported operations
• Rate supported enterprises/utilities, and
• Supplementary information related to investment income
REPORT:
Overall staff is projecting the City's tax supported results for 2021 will be a deficit of $6.7M
(3.2% of expenditures totaling $207.8M), or the equivalent of just over a 5.0% property tax
rate increase if there was no balance in the appropriate stabilization reserve. The major
contributors to the overall negative variance are the projected deficits in Sport recreation
revenues, Emergency Operations Centre, and Investment Income. As COVID-19 related
restrictions carried into 2021 causing facility closures and reduced programming these areas
continued to be greatly impacted for the first half of 2021 with considerable losses in income
for recreational programs (e.g. pools, arenas, sportsfields, and community centres). These
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
deficits are offset in part by Gapping savings resulting from COVID-19, as well as, regular
vacancies. More details about each of the City's tax supported divisions are provided in the
report below and in Schedule 1.
The City's enterprise (non -tax supported business lines) results to the end of June show most of
the enterprises have results that were better than budgeted. However, in the rate supported
operations, Parking was hit hardest by COVID-19 with lower than anticipated revenues due to
the ongoing restrictions causing downtown businesses to close and/or run at reduced capacity
resulting in less vehicle traffic requiring monthly or hourly parking in the downtown core. More
details about each of the City's enterprises are provided in the report below and in Schedules 2-
8.
The City has a total of $6,534,000 in Safe Restart Funding of which $4,022,000 was carried
over from 2020 and $2,512,000 was received in 2021. In addition to this funding, the City
received $4.8M in COVID-19 Recovery Funding from the Provincial government as part of
their COVID-19 relief plan announced on March 4, 2021 to support Ontario municipalities in
dealing with the ongoing impacts of the pandemic. The total Safe Restart and COVID-19
Recovery Funding of $11.3M will be sufficient to fund the City's projected deficit of $6.7M in
tax supported operating, and $0.6M in the Parking enterprise, without requiring a draw from
the City's stabilization reserves. This is good news for the City, as any carryover funding will
help the City deal with any continuing negative financial impacts of COVID-19 that extend
into 2022.
Significant projected tax supported variances (over $200,000) are summarized below.
Additional details are provided in Schedule 1 for projected variances that exceed $100,000.
Operating Fund — Tax Base (Schedule 1)
Staff is projecting the City's tax supported results for 2021 will be a deficit of $6.7M (3.2% of
expenditures totaling $207.8M), or the equivalent of just over a 5.0% property tax rate increase
if there was no balance in the appropriate stabilization reserve.
Significant Proiected Variances (over $200, 000)
Community Services Department:
• Bylaw Enforcement is projecting a deficit of $455,000 in fine revenues, as the City
has not been issuing as many tickets due to the COVID-19 restrictions in place for
the first half of the year. Additionally, the collection of defaulted fine amounts is not
back to pre -pandemic levels as the Ministry of Transportation has not been
enforcing license plate renewals, which would ensure outstanding fines are paid.
Neighbourhood Programs & Services is projecting a deficit of $235,000 due to
reduced recreation program revenues as a result of COVID-19 restrictions.
• Sport is projecting a deficit of $6,710,000 due to reduced revenues as programs
and rentals are negatively impacted due to COVID-19 restrictions.
Development Services Department:
• Planning is projecting a surplus of $580,000 due to higher than anticipated
revenues for site plans.
Engineering is projecting a surplus of $340,000 as a result of increased revenues
from site plans, service charges and recoverable external billings.
Infrastructure Services Department:
• Facilities Management is projecting a surplus of $920,000 due to reduced utility
costs compared to budget, as some City facilities remain closed and/or operating at
reduced capacity due to COVID-19 restrictions.
• Operations — Roads and Traffic is projecting a surplus of $200,000 due to winter
and discretionary expense savings as a result of COVID-19.
General Expense:
• Gapping is projecting a surplus of $2,720,000 due to staff savings related to regular
vacancies and COVID-19, as a number of staff whose facilities or programs were
suspended during the pandemic were put on designated emergency leave (DEL) or
infectious disease emergency leave (IDEL) allowing them to take advantage of
various income support programs offered by the Federal government such as the
Canada Emergency Response Benefit (CERB).
Emergency Operations Centre is projecting a deficit of $1,635,000 due to the
COVID-19 pandemic. Example of costs include:
o Purchases of personal protective equipment and other health & safety
supplies
o Staff overtime related to managing the City's COVID-19 response
o Additional cleaning and minor retrofits of City facilities
General Revenues:
• Investment income is projecting a deficit of $1,840,000 due to Bank of Canada
emergency rate cuts in March 2020, which is lower than the budgeted rate based
off a 3 -year average.
Enterprises — (Schedules 2 to 8)
For the period of January to June, total enterprise results are $4.5M better than budget.
Five of the City's seven enterprises are projecting surpluses. Details of each enterprise are
noted below.
Building Enterprise (Schedule 2)
Building $64 ($1,128)_ $1,192
The Building Enterprise has a favourable variance of $1,191,565 as a result of higher than
budgeted permit revenues and lower than budgeted expenses due to staff vacancies.
Golf Enterprise (Schedule 3)
The Golf Enterprise has a slight favourable variance of $45,055 primarily due to higher
than budgeted revenues.
Parking Enterprise (Schedule 4)
rQI nilly
($1,523)
($862)
($661)
The Parking Enterprise has an unfavourable variance of $661,203 as revenues are
significantly lower than budget due to reduced monthly and hourly parking demands
related to COVID-19.
Water Utility (Schedule 5)
Water
$72 ($293) ' $365
The Water Utility has a favourable variance of $364,665 due to higher than budgeted
volume of water sales as a result of the dry spring.
Sanitary Sewer Utilitv (Schedule 6
The Sanitary Sewer Utility has a favourable variance of $3,219,939. Sewer surcharge
revenues are higher than budgeted, which is consistent with increased volume sales noted
in the Water utility. In addition, sewage processing costs were less than budget due to the
dry spring. These favourable variances are slightly offset with unbudgeted standby costs
and vehicle rentals as a result of COVID-19.
Stormwater Utility (Schedule 7)
The Stormwater Utility has an unfavourable variance of $200,766. Much of this is related
to increased administration expenses due to additional development review costs and
unanticipated standby costs and vehicle rentals incurred as a result of COVID-19. The
negative variance is partially offset by increased stormwater fee revenues from increased
development.
Gas Utility (Schedule 8)
Gas Utility Total
$1,590
$1,042
$548
Gas Delivery _
Gas Supply
$1,766
($176)
$1,890
($848)
($124
$672
The Gas Utility (Total) has a favourable variance of $548,179. The majority of this variance
is due to lower than anticipated Gas Supply expenses as lower volumes of gas were
purchased due to the warmer than normal winter. Gas Delivery has an unfavourable
variance due to lower than anticipated revenues which are partially offset by savings in
expenses due to staff vacancies and increased program revenues in tank rentals and
recoveries from warranty items.
Investment Report (Schedule 9)
All investments made were in accordance with the City's investment policy. Short-term
investment yields to date have averaged 1.07%, and are well below the average interest
rate of 1.64% for all of 2020.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Financial implications are discussed above and detailed in the attached schedules.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer
ATTACHMENTS:
•
Schedule 1
•
Schedule 2
•
Schedule 3
•
Schedule 4
•
Schedule 5
•
Schedule 6
•
Schedule 7
•
Schedule 8
•
Schedule 9
Statement of Operations
— Tax Supported Services
Statement of Operations
— Building
Statement of Operations
— Golf
Statement of Operations
— Parking
Statement of Operations
— Water
Statement of Operations
— Sanitary Sewer
Statement of Operations
— Stormwater
Statement of Operations
— Gas
Investment Report
City of Kitchener
Statement of Operations
for the six months ended June 30, 2021
(with comparative figures for the six months ended June 30, 2020)
2020 2021 2021
Actual Actual Budget
as at June as at June as at June
CHIEF ADMINISTRATOR'S OFFICE
CAO ADMINISTRATION
CHIEF ADMINISTRATOR'S OFFICE TOTAL
COMMUNITY SERVICES DEPARTMENT
COMMUNITY SERVICES ADMINISTRATION
BY-LAW ENFORCEMENT
CORPORATE CUSTOMER SERVICE
FIRE
NEIGHBOURHOOD PROGRAMS & SERVICES
SPORT DIVISION
COMMUNITY SERVICES DEPARTMENT TOTAL
FINANCIAL SERVICES DEPARTMENT
FINANCIAL SERVICES ADMINISTRATION
ACCOUNTING
ASSET MANAGEMENT & BUSINESS SOLUTIONS
FINANCIAL PLANNING
REVENUE
SUPPLY SERVICES
FINANCIAL SERVICES DEPT TOTAL
CORPORATE SERVICES DEPARTMENT
CORPORATE SERVICES ADMINISTRATION
MAYOR & COUNCIL
CORPORATE COMMUNICATIONS
EQUITY, ANTI -RACISM & INDIGENOUS
HUMAN RESOURCES
TECHNOLOGY INNOVATION & SERVICES
LEGAL
LEGISLATED SERVICES
CORPORATE SERVICES DEPT TOTAL
DEVELOPMENT SERVICES DEPARTMENT
DEVELOPMENT SERVICES ADMINISTRATION
ECONOMIC DEVELOPMENT
PLANNING
ENGINEERING
TRANSPORTATION SERVICES
DEVELOPMENT SERVICES DEPT TOTAL
2021 2021 2021 2021
Surplus/ YTD % Annual Projected
(Deficit) Variance Budget Surplus/(Deficit)
542,944 530,587 536,998 6,411 1.2% 1,151,707
542,944 530,587 536,998 6,411 1.2%
1,151,707
5,000
5,000
Comments
Schedule 1
Page 1 of 2
332,466
317,793
328,785
10,992
3.3%
693,481
25,000
1,188,445
1,340,830
895,653
(445,177)
-49.7%
2,319,326
(455,000)
Deficit due to lower fine revenues as a result of COVID.
205,080
211,211
273,253
62,042
22.7%
584,312
40,000
16,709,304
16,859,668
16,707,025
(152,643)
-0.9%
36,832,759
(195,000)
Deficit projected due to actual wages being higher than budget.
Deficit due to reduced revenues as programs were negatively impacted by
3,537,443
3,416,323
3,461,736
45,413
1.3%
7,937,134
(235,000)
COVID.
Deficit due to reduced revenues as programs and rentals were negatively
2,987,773
4,563,539
986,187
(3,577,352)
-362.7%
1,989,874
(6,710,000)
impacted by COVID.
24,960,511
26,709,364
22,652,639
(4,056,725)
-17.9%
50,356,886
(7,530,000)
142,691
146,039
150,305
4,266
2.8%
321,342
-
661,896
643,183
648,682
5,499
0.8%
1,366,432
-
386,487
366,237
384,973
18,736
4.9%
822,344
-
324,224
310,496
308,662
(1,834)
-0.6%
675,425
(15,000)
426,422
248,188
392,952
144,764
36.8%
678,193
-
223,606
185,490
224,506
39,016
17.4%
489,041
-
2,165,326
1,899,633
2,110,080
210,447
10.0%
4,352,777
(15,000)
233,310
225,591
229,161
3,570
1.6%
496,898
45,000
Current and projected surplus due to decrease in meeting conference
662,875
657,397
723,145
65,748
9.1%
1,466,014
65,000
expense due to COVID
Current and projected deficit due to lack of advertising and sponsorship
765,588
797,860
688,161
(109,699)
-15.9%
1,483,997
(175,000)
revenue since no programs are running due to COVID
-
168,754
164,725
(4,029)
-2.4%
353,609
-
1,046,810
1,076,157
1,067,411
(8,746)
-0.8%
2,329,214
-
2,773,355
2,629,874
2,686,614
56,740
2.1%
5,790,583
35,000
543,426
549,502
519,200
(30,302)
-5.8%
1,147,051
(10,000)
Current and projected deficit due to lower than anticipated revenues due to
632,885
715,036
580,295
(134,741)
-23.2%
1,321,090
(105,000)
COVID
6,658,249
6,820,171
6,658,712
(161,459)
2.5%
14,388,456
(145,000)
265,720
274,852
297,045
22,193
7.5%
642,468
-
Current and projected deficit due to revenue lower than budget due to
3,524,152
3,590,875
3,500,034
(90,841)
-2.6%
5,913,341
(190,000)
COVID.
Current and projected surplus due to higher than anticipated revenues for
1,035,651
10,663
560,768
550,105
98.1%
1,564,442
580,000
site plans. Expected to even out over the remainder of the year
Current and projected surplus due to higher than anticipated revenues for
309,025
(645,475)
(16,231)
629,244
3876.8%
137,087
340,000
site plans, service charges and recoverable external billings
1,476,780
1,959,444
2,010,502
51,058
2.5%
4,518,359
35,000
Current and projected surplus due lower crossing guard wages due to COVID
6,611,328
5,190,359
6,352,118
1,161,759
7.6%
12,775,697
765,000
City of Kitchener
Statement of Operations
for the six months ended June 30, 2021
(with comparative figures for the six months ended June 30, 2020)
2020
Actual
asatJune
INFRASTRUCTURE SERVICES DEPARTMENT
INFRASTRUCTURE SERVICES ADMINISTRATION
FACILITIES MANAGEMENT
PARKS AND CEMETERIES
OPERATIONS - ROADS AND TRAFFIC
INFRASTRUCTURE SERVICES DEPARTMENTTOTAL
NET DEPARTMENTAL EXPENDITURES
GENERAL EXPENSES
GRANTS & BOARDS
OTHER
GAPPING
CAPITAL AND RESERVE FINANCING
CONTRACT SERVICES
TAX WRITEOFFS & REBATES
PROVISIONS - BAD DEBT ALLOWANCE
EMERGENCY OPERATIONS CENTRE
GENERAL EXPENSES TOTAL
TOTAL NET EXPENSES
GENERAL REVENUES
TAXES
GENERAL LEVY
SUPPLEMENTARY TAXES/WRITE-OFFS
LOCAL IMPROVEMENTS
PAYMENTS IN LIEU
OTHER REVENUE
INVESTMENT INCOME
PENALTIES & INTEREST
CONTRIBUTION FROM RERSERVES AND ENTERPRISES
SUNDRY INCOME
SOLAR ROOF
GENERAL REVENUES TOTAL
TOTAL CITY OPERATIONS
2021 2021 2021 2021 2021 2021
Actual Budget Surplus/ YTD % Annual Projected
as at June as at June (Deficit) Variance Budget Surplus/(Deficit)
Comments
Schedule 1
Page 2 of 2
295,520
297,628
303,326
5,698
1.9%
640,417
-
Current and projected surplus due to reduced utility consumption at facilities
5,873,995
5,657,676
6,958,280
1,300,604
18.7%
15,353,942
920,000
during COVID related closures.
6,210,304
7,491,476
7,382,590
(108,886)
-1.5%
16,914,931
(145,000)
Current and projected deficit due to closure of Williamsburg crematorium
and operational needs in the downtown.
Current and projected surplus due to winter and discretionary expense
5,338,756
6,200,753
6,386,031
185,278
2.9%
11,668,003
200,000
savings as a result of COVID.
17,718,575
19,647,533
21,030,227
1,382,694
-1.8%
44,577,293
975,000
58,656,933
60,797,647
59,340,774
(1,456,873)
0.6%
127,602,816
(5,945,000)
8,564,301
8,248,394
8,451,807
203,413
2.4%
15,597,853
-
Current surplus due to unused grants resulting from COVID restrictions.
749,829
811,262
901,021
89,759
10.0%
1,547,385
-
(6,793,049)
(6,419,201)
(812,000)
5,607,201
690.5%
(2,100,000)
2,720,000
Current and projected surplus due to staff savings resulting from COVID in
addition to regular vacancies.
11,121,628
10,299,804
10,383,055
83,251
0.8%
13,624,069
-
417,281
400,029
458,137
58,108
12.7%
866,094
-
66,383
72,625
63,027
(9,598)
-15.2%
83,202
-
-
-
-
-
0.0%
650,000
-
3,620,638
1,527,233
-
(1,527,233)
-100.0%
-
(1,635,000)
Current and projected deficit due to COVID related expenses.
17,747,011
14,940,146
19,445,047
4,504,901
-0.5%
30,268,603
1,085,000
76,403,944
75,737,793
78,785,821
3,048,028
0.4%
157,871,419
(4,860,000)
(107,083,636)
(110,290,982)
(110,283,321)
7,661
0.0%
(132,046,893)
-
9,890
77,169
8,503
(68,666)
-807.6%
(1,120,252)
-
(810)
(156)
(771)
(615)
-79.8%
(40,965)
(30,000)
(791,408)
(813,216)
(779,645)
33,571
4.3%
(4,323,044)
-
(107,865,964)
(111,027,185)
(111,055,234)
(28,049)
1.1%
(137,531,154)
(30,000)
(1,838,261)
(1,040,527)
(1,906,836)
(866,309)
-45.4%
(4,040,000)
(1,840,000)
Current and projected deficit due to Bank of Canada emergency rate cuts in
March 2020 (budget uses a 3 -year average).
(799,799)
(1,779,062)
(1,796,893)
(17,831)
-1.0%
(3,296,520)
-
(6,168,790)
(6,257,909)
(6,257,909)
-
0.0%
(12,515,821)
-
(113,588)
(156,828)
(68,981)
87,847
127.3%
(137,924)
-
-
-
-
-
0.0%
(350,000)
-
(8,920,438)
(9,234,326)
(10,030,619)
(796,293)
3.1%
(20,340,265)
(1,840,000)
(116,786,402)
(120,261,511)
(121,085,853)
(824,342)
1.3%
(157,871,419)
(1,870,000)
(40,382,458)
(44,523,718)
(42,300,032)
2,223,686
-
(6,730,000)
Schedule 2
CITY OF KITCHENER
BUILDING ENTERPRISE
STATEMENT OF REVENUE AND EXPENSES AND STABILIZATION RESERVE FUND
for the 6 months ended June 30, 2021
(with comparative figures for the 6months ended June 30, 2020)
STABILIZATION RESERVE FUND
Opening Balance 13,710,996 13,710,996 - 12,377,137
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
1 - Revenues are higher than budget due to increased permit applications over what was anticipated in the new low rise residential,
duplex conversions, residential improvements and apartment categories.
2 - Expenses are lower than budget due to staff vacancies.
2021
2020
ACTUAL
BUDGET
VARIANCE * Note
ACTUAL
REVENUE
Building Revenues
2,679,999
1,676,840
1,003,159 1
2,920,502
2,679,999
1,676,840
1,003,159
2,920,502
EXPENSES
Direct
2,053,308
2,241,857
188,549 2
2,070,409
Indirect
562,643
562,500
(143)
562,478
2,615,951
2,804,357
188,406
2,632,886
Net Revenue (Expense)
64,048
(1,127,517)
1,191,565
287,615
STABILIZATION RESERVE FUND
Opening Balance 13,710,996 13,710,996 - 12,377,137
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
1 - Revenues are higher than budget due to increased permit applications over what was anticipated in the new low rise residential,
duplex conversions, residential improvements and apartment categories.
2 - Expenses are lower than budget due to staff vacancies.
Schedule 3
CITY OF KITCHENER
GOLF ENTERPRISE
STATEMENT OF REVENUE AND EXPENSES AND STABILIZATION RESERVE FUND
for the six months ended June 30, 2021
(with comparative figures for the six months ended June 30, 2020)
Net Revenue (Expense) 7,404 (37,651) 45,055 58,333
STABILIZATION RESERVE FUND
Opening Balance (1,032,195) (1,032,195) - (1,039,692)
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
2021
2020
ACTUAL
BUDGET
VARIANCE * Note
ACTUAL
OPERATIONS
Revenue
1,183,899
1,142,212
41,687
782,865
Expenses
962,115
965,483
3,368
581,428
Gross Profit
221,784
176,729
45,055
201,437
Gross Profit Percentage
19%
15%
26%
OTHER EXPENSES
Transfer - Golf Capital Reserve
43,968
43,968
-
34,644
Debt Charges
-
-
-
-
Transfer to Capital
133,002
133,002
-
71,050
176,970
176,970
-
105,694
Net Profit before Dividend
44,814
(241)
45,055
95,743
Dividend Transfer to City
37,410
37,410
-
37,410
Net Revenue (Expense) 7,404 (37,651) 45,055 58,333
STABILIZATION RESERVE FUND
Opening Balance (1,032,195) (1,032,195) - (1,039,692)
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
Schedule 4
CITY OF KITCHENER
PARKING ENTERPRISE
STATEMENT OF REVENUE AND EXPENSES AND STABILIZATION RESERVE FUND
for the 6 months ended June 30, 2021
(with comparative figures for the 6 months ended June 30, 2020)
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
1- Revenues are significantly lower due to reduced monthly and hourly parking demands related to COVID-19. We expect
some additional recovery anticipated in September.
2 - Expenses are lower due to reduced operating and staffing costs related to COVID-19.
2021
2020
ACTUAL
BUDGET
VARIANCE * Note
ACTUAL
REVENUE
Parking Revenues
1,853,500
2,825,796
(972,296) 1
2,313,596
Economic Development Subsidies
631,374
631,374
-
631,374
2,484,874
3,457,170
(972,296)
2,944,970
EXPENSES
General
1,644,984
1,956,077
311,093 2
3,038,936
Debt Charges
-
-
-
-
Transfer to Capital fund
1,362,762
1,362,762
-
1,269,698
3,007,746
3,318,839
311,093
3,038,936
Net Profit before Dividend
(522,872)
138,331
(661,203)
(93,966)
Dividend Transfer to City
1,000,001
1,000,001
-
1,000,001
Net Revenue (Expense)
(1,522,873)
(861,670)
(661,203)
-
STABILIZATION RESERVE FUND
Opening Balance
1,884,687
1,884,687
-
1,270,500
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
1- Revenues are significantly lower due to reduced monthly and hourly parking demands related to COVID-19. We expect
some additional recovery anticipated in September.
2 - Expenses are lower due to reduced operating and staffing costs related to COVID-19.
Schedule 5
CITY OF KITCHENER
WATER UTILITY
STATEMENT OF REVENUE AND EXPENSES AND STABILIZATION RESERVE FUND
for the four months ended June 30, 2021
(with comparative figures for the four months ended June 30, 2020 )
2021
2020
ACTUAL
BUDGET
VARIANCE * Note
ACTUAL
REVENUE AND EXPENSE
Sale of Water
24,107,060
23,005,192
1,101,868 1
23,635,369
Water Supply
12,214,820
11,633,948
(580,872) 2
11,760,276
Gross Profit
11,892,240
11,371,244
520,996
11,875,093
Gross Profit Percentage
49%
49%
50%
MISCELLANEOUS REVENUE
Other
128,729
121,315
7,414
111,258
128,729
121,315
7,414
111,258
EXPENSE
Administration
1,538,835
1,474,520
(64,315)
1,428,400
Water transmission & distribution
3,236,654
3,213,958
(22,696)
2,502,785
COVID Costs
76,406
-
(76,406)
179,354
Transfer to capital fund
7,097,299
7,096,971
(328)
6,990,000
11,949,194
11,785,449
(163,745)
11,100,539
Net Revenue (Expense)
71,775
(292,890)
364,665
885,812
STABILIZATION RESERVE FUND
Opening Balance
7,538,584
7,538,584
-
4,990,308
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
1 Sales of water are higher than budget due to increased
volumes sold to the end of June due to a dry spring.
2 Water supply is higher than budget to the end of June due to increased volumes.
Schedule 6
CITY OF KITCHENER
SANITARY SEWER UTILITY
STATEMENT OF REVENUE AND EXPENSES AND STABILIZATION RESERVE FUND
for the six months ended June 30, 2021
(with comparative figures for the six months ended June 30, 2020)
REVENUE AND EXPENSES
Sewer Surcharge Revenue
Cost of Sewage Processing
Gross Profit
Gross Profit Percentage
MISCELLANEOUS REVENUE
Other Revenue
FXDFNCFC
Administration
Sanitary Sewer Maintenance
COVID Costs
Sewage Rebates
Transfer to Capital Fund
2021
ACTUAL BUDGET VARIANCE* Note
2020
ACTUAL
30,197,090 28,717,829 1,479,261 1 29,601,314
15,476,131 17,612,601 2,136,470 2 17,111,167
14,720,959 11,105,228 3,615,731 12,490,147
49% 39% 42%
170,825
633,236
(462,411) 3
724,583
170,825
633,236
(462,411)
724,583
1,261,239
1,279,547
18,308
1,266,164
1,701,658
1,781,296
79,638
1,655,274
165,645
-
(165,645) 4
156,525
555,281
690,479
135,198 5
475,484
9,288,380
9,287,500
(880)
9,493,276
12,972,203
13,038,822
66,619
13,046,723
Net Revenue (Expense) 1,919,581 (1,300,358) 3,219,939 168,007
STABILIZATION RESERVE FUND
Opening Balance 9,348,702 9,348,702 - 7,171,113
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
1 Sewer surcharge revenue is higher than budget, which is consistent with the water utility, due to increased consumption.
2 Cost of sewage processing is lower than budget, due to a drier spring than anticipated.
3 Other revenue is lower than budget due to a correction in cross border billings.
4 COVID costs are unbudgeted and therefore are unanticipated costs due to standby costs and vehicle rentals.
5 Sewage rebates are lower than budget due to fewer requests for rebates received to date.
CITY OF KITCHENER
STORM SEWER UTILITY
STATEMENT OF REVENUE AND EXPENSES AND STABILIZATION RESERVE FUND
for the six months ended June 30, 2021
(with comparative figures for the six months ended June 30, 2020)
REVENUES
Stormwater Fee
Other Revenue
EXPENSES
Administration
Storm Sewer Maintenance
COVID Costs
Stormwater Credit Program
Grants to Charities/Places of Worship
Transfer to Capital Fund
2021
ACTUAL BUDGET VARIANCE* Note
2020
ACTUAL
10,939,738 10,813,100 126,638 1 10,174,646
334,881 377,266 (42,385) 329,956
11,274,619 11,190,366 84,253 10,504,602
1,281,655
1,122,467
(159,188) 2
1,121,037
1,339,024
1,338,624
(400)
1,126,478
128,374
-
(128,374) 3
76,833
288,863
272,045
(16,818)
248,705
253,817
273,200
19,383
249,179
7,443,122
7,443,500
378
6,812,854
10,734,855
10,449,836
(285,019)
9,635,086
Net Revenue (Expense) 539,764 740,530 (200,766) 869,516
STABILIZATION RESERVE FUND
Opening Balance
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
783,762 783,762
1 Stormwater fee is higher than budget due to increased development.
2 Administration expenses are higher than budget due to additional development review costs incurred by the utility.
3 COVID costs are unbudgeted and therefore are unanticipated costs due to standby costs and vehicle rentals.
260,312
Schedule 7
CITY OF KITCHENER
GASWORKS
STATEMENT OF REVENUE AND EXPENSES AND STABILIZATION RESERVE FUND
for the four months ended June 30, 2021
with comparative figures for the four months ended June 30, 2020
DELIVERY OPERATIONS
Gas delivery
Revenue
Expense
Gross Profit
Gross Profit Percentage
Other programs
(Customer Service, Rental Water Heaters & Financing)
Revenue
Expense
COVID Costs
Transfer to Gasworks capital fund
Net Profit before Dividend
Dividend Transfer to City
2021
ACTUAL BUDGET VARIANCE * Note
21,503,330 21,952,231 (448,901) 1
8,757,692 8,948,749 191,057 2
12,745,638 13,003,482 (257,844)
59% 59%
5,808,759 5,420,713 388,046 3
3,730,395 3,519,410 (210,985) 4
2,078, 364 1,901,303 177,061
43,173
(43,173)
(5,399,371) (5,399,371) -
9,381,458 9,505,414 (123,956)
(7,615,788) (7,615,788) -
Schedule 8
2020
F11111111 01111
20,768,413
8,641,686
12,126,727
58%
5,474,662
3,409,679
2,064,983
137,473
(5,593,036)
8,461,201
(7,466,460)
Net Revenue (Expense) 1,765,670 1,889,626 (123,956) 994,741
STABILIZATION RESERVE FUND
Opening Balance 4,373,566 4,373,566 - 5,734,000
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
1- Gas Delivery sales revenues are lower than budget due to lower gas consumption because of warmer than normal winter.
2 - Gas Delivery expenses are lower than budget due to savings from staff vacancies.
3 - Other program revenues are higher than budget due to increase in tank rentals and recoveries from warranty items.
4 - Other program expenses are higher than budget due to increased depreciation costs.
CITY OF KITCHENER
GASWORKS
STATEMENT OF REVENUE AND EXPENSES AND STABILIZATION RESERVE FUND
for the four months ended June 30, 2021
with comparative figures for the four months ended June 30, 2020
SUPPLY OPERATIONS
Gas supply
ACTUAL
2021
BUDGET VARIANCE * Note
2020
ACTUAL
Schedule 8
Revenue
17,549,106
18,067,214 (518,108) 5
17,393,268
Expense
17,725,060
18,915,303 1,190,243 6
17,523,302
Net Revenue (Expense)
(175,954)
(848,089) 672,135
(130,034)
Gross Profit Percentage
-1%
-5%
-1%
SUPPLY STABILIZATION RESERVE FUND
Opening Balance
4,239,902
4,239,902 -
3,419,301
VARIANCE EXPLANATION:
* Numbers in brackets are unfavourable variances
5 - Gas Supply sales revenues are lower than budget due to lower gas consumption because of warmer than normal winter.
6 - Gas Supply expenses are lower than budget due to lower volumes of gas purchased.
Investment Report as of lune 30, 2021
Comparison of Short Term Yields
January to June 2021
1.50%
1.25%
1.00%
0.75%
0.50%
0.25%
0.00%
t City Yield CIBC Rate
This graph compares the yields for:
1) City investments
2) Interest rate for City bank account with CIBC
Schedule 9 Page 1
Average Short -Term
Investment Balance*
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0 -
�P�
2020
--A--2021
* includes average balance in the overnight bank account
Investment Report as of lune 30, 2021
Investment Balances
Cash a Short Term Investments
As at June 30, 2021
INVESTMENT
PORTFOLIO
AVERAGE
TYPE
BALANCE
SHARE
YIELD
Government of Canada
0
0.0%
0.00%
Prov inces
0
0.0%
0.00%
Municipal/Other
0
0.0%
0.00%
Schedule I Banks
274,438,802
90.1%
1.00%
Schedule 11 & III Banks
0
0.0%
0.00%
Credit Unions & TrustCo's
30,000,000
9.9%
1.19%
304,438,802
100%
1.02%
Long Term Investments
As at June 30, 2021
INVESTMENT
PORTFOLIO
AVERAGE
TYPE
BALANCE
SHARE
YIELD
Government of Canada
0
0.0%
0.00%
Provinces
11,282,096
20.3%
2.32%
Municipal/Other
3,645,387
6.5%
3.25%
Schedule I Banks
34,344,151
61.7%
2.08%
Schedule 11 & III Banks
1,900,000
3.4%
1.61%
Credit Unions & Trust Co's
4,500,000
8%
2.00%
55,671,634
100%
2.18%
Schedule 9 Page 2
Operating Fund
Accumulated Interest
2,500,000
2,000,000
1,500,000
1,000,000
'r
.A.
500,000 000
4P
•••�••• 2020Actual —4b-- 2021 Budget 2021 Actual
Average Interest Rate 2021 = 1.07%
Average Interest Rate 2020 = 1.64%