HomeMy WebLinkAboutFIN-2023-537 - September 2023 Variance ReportStaff Report
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Financia( Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: December 11, 2023
SUBMITTED BY: Ryan Hagey, Director of Financial Planning & Asset Management,
519-741-2200 ext. 7353
PREPARED BY: Debbie Andrade, Manager of Budgets, 519-741-2200 ext. 7114
WARD(S) INVOLVED: All Wards
DATE OF REPORT: November 21, 2023
REPORT NO.: FIN -2023-537
SUBJECT: September 2023 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 surplus of $3,260,000.
• Most enterprise operations (non -tax supported business lines) are projecting surpluses.
• This report supports the delivery of core services.
EXECUTIVE SUMMARY:
This is the second variance report to Council regarding the City's financial performance versus
the 2023 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 2023 will be a surplus of $3,260,000.
The major contributors to the overall positive variance are the projected surpluses in Planning,
Supplementary Taxes, Penalties and Interest, and Gapping. These positive variances are offset
in part by projected deficits in Sport, Corporate Communications, Facilities Management, Parks
and Cemeteries, and Contract Services. 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 September show most
of the enterprises have results that were better than budgeted. However, Parking is projecting a deficit
due to lower than anticipated revenues as a result of reduced monthly and hourly parking demands
related to hybrid working environments. More details about each of the City's enterprises are provided
in the report below and in Schedules 2-8.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 85 of 99
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 2023 will be a surplus of $3,260,000.
Significant Proiected Variances (over $200, 000)
Corporate Services Department:
• Corporate Communications is projecting a deficit of $200,000 due to reduced
advertising and sponsorship revenue as well as increased printing expenses.
Development Services Department:
• Planning is projecting a surplus of $805,000 due to higher than anticipated revenues for
Site Plans as well as Official Plan and Zoning By -Law Amendments.
Infrastructure Services Department:
• Parks and Cemeteries is projecting a deficit of $285,000 due to reduced crematorium
revenues as well as increased operating and maintenance costs.
General Expenses:
• Gapping is projecting a surplus of $1,375,000 due to staff savings resulting from
vacancies.
General Revenues:
• Supplementary Taxes/Write-Offs is projecting a surplus of $750,000 due to higher than
expected supplementary revenues as well as lower than expected tax appeal write-offs.
• Penalties and Interest is projecting a surplus of $500,000 due to an increase in overall
property tax receivable balances.
Enterprises — (Schedules 2 to 8)
Six of the City's seven enterprises are projecting year end surpluses. Details of each
enterprise are noted below.
Building Enterprise (Schedule 2)
The Building Enterprise is projecting a surplus of $2,757,000 due to higher than expected
revenues for new rental housing projects in the mid- and high-rise categories and cost savings
related to staff vacancies.
Golf Enterprise (Schedule 3)
The Golf Enterprise is projecting a year end surplus of $190,000 due to higher than budgeted
green fee revenue which is offset in part by higher than budgeted wages and increased credit
card fees.
Parking Enterprise (Schedule 4)
The Parking Enterprise has an approved deficit budget of $1,531,000 and is projecting a
further deficit of $440,000 due to reduced monthly and meter revenues which are offset in part
Page 86 of 99
by staff vacancies and the loss of a surface parking lot due to a terminated lease. A balance of
$703,000 remains in Safe Restart & COVID-19 Recovery Funding received from the Federal
and Provincial governments. This will be used to help offset any deficit in Parking due to the
remaining impacts from the pandemic.
Water Utility (Schedule 5)
The Water Utility is projecting a surplus of $2,079,000 due to increased volume of water sold
as a result of the warmer weather.
Sanitary Sewer Utility (Schedule 6)
The Sanitary Sewer Utility is projecting a surplus of $5,441,000 due to higher than budgeted
revenues, which is consistent with increased volume sales also noted in the Water utility.
Additionally, operating expenses are projected to be down due to resource gaps resulting in
decreased preventative maintenance.
Stormwater Utility (Schedule 7)
The Stormwater Utility is projecting a slight surplus of $140,000 due to higher stormwater
revenues from increased development and projected staff vacancies.
Gas Utility (Schedule 8)
The Gas Utility (Total) is projecting a surplus of $1,360,000.
• Gas Delivery is projecting a surplus of $786,000 due to rate increase as of September.
• Other Programs (Rental Water Heaters and KU Dispatch) is projecting a deficit of
$1,292,000 due to higher depreciation costs of rental water heaters and increased
carrying costs.
• Gas Supply is projecting a surplus of $1,866,000 due to reduced operating expenses as
a result of lower volumes of gas sold and favourable hedging strategies.
Investment Report (Schedule 9)
All investments made were in accordance with the City's investment policy. Short-term
investment yields to date have averaged 4.52% which is higher than the average interest rate of
3.44% for all of 2022.
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
Page 87 of 99
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
Page 88 of 99
City of Kitchener
Tax Supported Operating Variance Report
for the nine months ended Sept 30, 2023
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
FINANCIAL OPERATIONS
FINANCIAL REPORTING & ERP SOLUTIONS
FINANCIAL PLANNING &ASSET MANAGEMENT
REVENUE
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 ADMI NISTRATION
ECONOMIC DEVELOPMENT
PLANNING
ENGINEERING
TRANSPORTATION SERVICES
DEVELOPMENT SERVICES DEPT TOTAL
Schedule 1
Page 1 of 2
1,203,421 898,188 903,088 4,900 0.5% -
1,203,421 898,188 903,088 4,900 0.5% -
838,337
609,952
630,055
20,103
3.2%
-
2,869,769
1,978,424
2,134,698
156,274
7.3%
-
1,201,484
805,108
889,404
84,296
9.5%
125,000 Current and projected surplus due to savings in contract services.
39,256,568
29,193,897
29,500,912
307,015
1.0%
(35,000)
9,370,433
6,874,804
7,025,471
150,667
2.1%
10,000
1,803,726
1,526,697
1,409,450
(117,247)
-8.3%
(175,000) Current and projected deficit due to higher than budgeted wages.
55,340,317
40,988,882
41,589,990
601,108
1.4%
(75,000)
350,523
293,529
263,914
(29,615)
-11.2% -
1,597,555
1,211,360
1,224,279
12,919
1.1% 25,000
801,155
460,481
603,335
142,854
23.7%
1,243,088
915,024
938,594
23,570
2.5%
237,675
3,691
5,716
2,025
35.4% 50,000
4,229,996
2,884,085
3,035,838
151,753
5.0% 75,000
821,736
37,679
4.6%
-
553,428 417,729 416,424 (1,305) -0.3% -
1,639,997 1,216,939 1,236,012 19,073 1.5% 25,000
Current and projected deficit due to substantial decline in adverstising and
1,628,206 1,377,445 1,172,404 (205,041) -17.5% (200,000) sponsorship revenue. Increased pricing is also causing an overage in printing
and deliver for Active Kitchenerand Kitchener Life.
Current and projected surplus due to staffing vacancy in the Social Planning &
891,417
561,799
668,564
106,765
16.0%
120,000
6,359,911
5,134,775
5,199,316
64,541
1.2%
-
1,692,717
Affordable Housing portfolio.
3,043,006
2,229,695
2,283,989
54,294
2.4%
-
(192,552)
5,919,789
4,455,778
4,447,371
(8,407)
-0.2%
40,000
320,482
1,063,378
784,057
821,736
37,679
4.6%
-
12.9%
1,010,000
Current and projected surplus due to higher than budget Business Licenses
1,332,366
840,524
1,014,807
174,283
17.2%
155,000
revenue, higher Committee of Adjustments due to change in User Fees and
lower postage costs due to decreased usage.
16,071,587
11,883,966
12,061,307
177,341
1.5%
140,000
1,203,189
910,920
903,477
(7,443)
-0.8%
(55,000)
6,359,911
5,134,775
5,199,316
64,541
1.2%
-
1,692,717
204,175
961,937
757,762
78.8%
805,000
(104,759)
(279,203)
(192,552)
86,651
45.0%
145,000
3,906,946
2,268,481
2,588,963
320,482
12.4%
115,000
13,058,004
8,239,148
9,461,141
1,221,993
12.9%
1,010,000
Current and projected surplus due to higher than anticipated revenues for Site
plans as well as Official Plan and Zoning By-law Amendments.
Current and projected surplus due to higher than anticipated revenues for Site
plans and Service Charge revenue.
Current and projected surplus due to increased Road Closure permits as well as
a decrease in walkway lighting spending. Current surplus also includes
Electricity savings that will be transferred to the Energy reserve.
Page 89 of 99
City of Kitchener
Tax Supported Operating Variance Report
for the nine months ended Sept 30, 2023
INFRASTRUCTURE SERVICES DEPARTMENT
INFRASTRUCTURE SERVICES ADMINISTRATION
FACILITIES MANAGEMENT
PARKS AND CEMETERIES
OPERATIONS - ROADS AND TRAFFIC
INFRASTRUCTURE SERVICES DEPARTMENT TOTAL
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
GENERALLEVY
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
702,679 546,898 528,101 (18,797) -3.6%
16,594,099 11,923,606 12,044,048 120,442 1.0%
19,525,425 15,198,383 14,770,898 (427,485) -2.9%
12,825,069 9,571,519 9,505,437 (66,082) -0.7%
Schedule 1
Page 2 of 2
Current surplus due to reduced utility consumption, savings will be transferred
(175,000) to energy reserve; Projected deficit driven by increased water usage at pools
due to required draining and re -filling, and increased service charges at rented
facilities
Current and projected deficit is a result of reduced crematorium revenue due
(285,000) to closure, as well as increased operating and maintenance costs; partially
offset by increased cemetery revenue based on increased sales volume
(65,000)
49,647,272 37,240,406 36,848,484 (391,922) -1.1% (525,000)
139,550,597 102,134,675 103,899,848 1,765,173 1.7% 625,000
16,781,037
13,729,036
13,729,036
-
0.0%
-
2,705,258
2,162,559
1,868,196
(294,363)
-15.8%
-
revenues as well as lower than expected Tax appeal write-offs.
-
(113)
Current and projected surplus due to staff savings resulting from regular
(2,100,000)
(8,393,859)
(7,361,759)
1,032,100
14.0%
1,375,000
vacancies.
16,273,277
14,777,158
14,777,158
-
0.0%
-
968,790
793,129
713,720
(79,409)
-11.1%
(105,000) Current and projected deficit due to increased costs related to existing contract
with the Humane Society.
78,050
94,259
76,527
(17,732)
-23.2%
-
850,000
650,000
746,356
96,356
12.9%
-
-
84,435
-
(84,435)
-100.0%
-
35,556,412
23,896,717
24,549,234
652,517
2.7%
1,270,000
175,107,009 126,031,392 128,449,082 2,417,690 1.9% 1,895,000
(146,507,227)
(146,507,278)
(146,507,278)
-
0.0% -
(1,050,000)
(1,550,508)
(136,654)
1,413,854
1034.6% 750,000 Current and projected surplus due to higher than expected Supplementary
revenues as well as lower than expected Tax appeal write-offs.
-
(113)
-
113
100.0% -
(4,594,700)
(4,707,815)
(4,594,701)
113,114
2.5% 115,000 Current and projected surplus due to increased assessment on PILs.
(152,151,927)
(152,765,714)
(151,238,633)
1,527,081
1.0% 865,000
(5,458,000) (9,482,483) (3,704,082) 5,778,401 156.0%
(4,126,143) (3,180,852) (2,843,357) 337,495 11.9%
(12,883,097) (9,437,326) (9,437,326) -
0.0%
(124,059) (115,630) (77,741) 37,889
48.7%
(363,783) - - -
0.0%
(22,955,082) (22,216,291) (16,062,506) 6,153,785
38.3%
- Anyyear end surplus in investment income will be transferred to reserve.
500,000 Current and projected surplus is due to an increase in overall property tax
receivable balances.
500,000
(175,107,009) (174,982,005) (167,301,139) 7,680,866 4.6% 1,365,000
(48,950,613) (38,852,057) 10,098,556 26.0% 3,260,000
Page 90 of 99
CITY OF KITCHENER
BUILDING ENTERPRISE
VARIANCE STATEMENT
for the nine months ended September 30, 2023
2023
2023
2023
Approved
Budget
Actual
Budget
as at
as at
September
September
Core Revenue 3,333,745
2,400,298
2,769,071
Schedule 2
2023 2023 2023
Variance %Variance Projected Year End
as at as at Surplus/(Deficit)
September September Comments
368,773 15.4% 1,728,000 Current and projected surplus is due to higher than expected new rental housing projects
in the mid and high rise categories.
Other Revenue 47,975 34,994 92,580 57,586 164.6% 93,000
REVENUE 3,381,720 2,435,292 2,861,650 426,358 17.5% 1,821,000
Operating Expense 6,710,056 5,051,508 4,270,989 780,519 15.5% 986,000 Current and projected surplus is to due to staff vacancies.
Transfer to Capital 74,000 55,503 124,285 (68,782) -123.9% (50,000)
EXPENSE 6,784,056 5,107,011 4,395,274 711,737 13.9% 936,000
Net Revenue (Expense)* (3,402,336) (2,671,719) (1,533,623) 1,138,096 42.6% 2,757,000
*Net Revenue (Expense) amount will be transferred to the stabilization reserve at the end of the year.
Page 91 of 99
CITY OF KITCHENER
GOLF ENTERPRISE
VARIANCE STATEMENT
for the nine months ended September 30, 2023
2023 2023 2023 2023 2023
2023
Approved Budget Actual Variance % Variance
Projected Year End
Budget as at September as at September as at September as at September
Surplus/(Deficit)
Core Revenue 2,516,662 2,285,826 2,854,811 568,985 24.9%
429,654
Other Revenue 801 158 - (158) -100.0% 23,635
REVENUE 2,517,463 2,285,984 2,854,811 568,827 24.9% 453,289
Comments
Current and projected surplus is due to higher than budgeted
green fee revenue.
Operating Expense 2,379,398 1,815,645 2,167,046 (351,401) -19.4% (263,504) Current and projected deficit is due to higher than budgeted
wages and increased merchant fees.
Debt Charges 216,892 - - 0.0%
Transfer to Capital 333,456 333,456 333,456 0.0%
Dividend Transfer to City 74,821 56,115 56,115 0.0%
EXPENSE 3,004,567 2,205,216 2,556,617 (351,401) -15.9% (263,504)
Net Revenue (Expense)* (487,104) 80,768 298,194 217,426 269.2% 189,785
*Net Revenue (Expense) amount will be transferred to the stabilization reserve at the end of the year.
Page 92 of 99
CITY OF KITCHENER
PARKING ENTERPRISE
VARIANCE STATEMENT
for the nine months ended Sept 30, 2023
Schedule 4
Page 93 of 99
2023
2023
2023
2023
2023
2023
Approved
Budget
Actual
Variance
% Variance
Projected Year End
Budget
as at Sept
as at Sept
as at Sept
as at Sept
Surplus/(Deficit) Comments
Core Revenue
5,197,206
3,802,485
3,221,161
(581,324)
-15.3%
(708,000) Current and projected deficit due to reduced monthly and meter demands related
to new hybrid working environment. Given the new normal, future projections will
need to be revised.
Economic Development Subsidies
1,296,044
971,771
972,032
261
0.0%
Other Revenue
602,490
451,803
410,839
(40,964)
-9.1%
REVENUE
7,095,740
5,226,059
4,604,032
(581,063)
-11.1%
(708,000)
Operating Expense
4,717,372
3,333,888
2,959,382
374,506
11.2%
268,000 Current and projected surplus due to staffing vacancies and lower costs due to
newer equipment.
Debt Charges
673,686
-
(18,331)
18,331
-
Transfer to Capital
1,235,876
1,235,876
1,235,876
-
0.0%
Dividend Transfer to City
2,000,000
1,500,003
1,500,003
-
0.0%
-
EXPENSE
8,626,934
6,069,767
5,676,930
392,837
6.5%
268,000
Net Revenue (Exnensel*
(1.531.194)
(843.708)
(1.072.898)
(229.190)
27.2%
(440.000)
*Net Revenue (Expense) amount will be transferred to the stabilization reserve at the
end of the year.
Page 93 of 99
CITY OF KITCHENER
WATER UTILITY
VARIANCE STATEMENT
for the nine months ended September 30, 2023
2023
2023
2023
2023
2023
2023
Approved
Budget
Actual
Variance
%Variance
Projected Year End
Budget
as at September
as at September
as at September
as at September
Surplus/(Deficit) Comments
Core Revenue 50,582,000
38,310,000
41,526,567
3,216,567
8.4%
4,090,000 Current and projected surplus due to warmer weather thereby
causing increased volume of water sold.
Other Revenue 471,977 337,868 339,971 2,103 0.6% 45,000
REVENUE 51,053,977 38,647,868 41,866,538 3,218,670 8.3% 4,135,000
Water Purchases 24,960,000 18,920,000 20,566,520 (1,646,520) -8.7% (2,292,000)
Operating Expense 11,711,942 8,143,683 8,003,162 140,521 1.79/ 233,000
Transfer to Capital 15,232,000 11,424,000 11,421,923 2,077 0.09/ 3,000
EXPENSE 51,903,942 38,487,683 39,991,605 (1,503,922) -3.9% (2,056,000)
Net Revenue (Expense)* (849,965) 160,185 1,874,933 1,714,748 1070.5% 2,079,000
*Net Revenue (Expense) amount will be transferred to the stabilization reserve at the end of the year.
Schedule 5
Current and projected deficit is due to increased volume of water
purchased, consistent with increased volume of sales.
Current and projected surplus is due to savings from staff vacancies.
Page 94 of 99
Schedule 6
CITY OF KITCHENER
SANITARY SEWER UTILITY
VARIANCE STATEMENT
for the nine months ended September 30, 2023
2023
2023
2023
2023
2023
2023
Approved
Budget
Actual
Variance
% Variance
Projected Year End
Budget
as at September
as at September
as at September
as at September
Surplus/(Deficit) Comments
Core Revenue 62,464,000
47,341,000
51,462,648
4,121,648
8.7%
5,050,000 Current and projected surplus due to increased water sales, consistent
with the Water utility.
Other Revenue 1,408,278
1,069,424
1,120,621
51,197
4.8%
95,000
REVENUE 63,872,278
48,410,424
52,583,269
4,172,845
8.6%
5,145,000
Sanitary Processing 35,164,200 26,595,755 26,426,859 168,896
Operating Expense 9,614,560 6,625,566 6,855,197 (229,631)
0.6% (83,000) Current surplus is due to a drier spring/early summer than anticipated.
-3.5% 377,000 Current deficit due to timing of pumping station repair/maintenance
costs. Projected year end surplus due to staff vacancies resulting in
decreased preventative maintenance.
Transfer to Capital 22,546,000 16,909,500 16,907,768 1,732 0.0% 2,000
EXPENSE 67,324,760 50,130,821 50,189,824 (59,003) -0.1% 296,000
Net Revenue (Expense)* (3,452,482) (1,720,397) 2,393,445 4,113,842 239.1% 5,441,000
*Net Revenue (Expense) amount will be transferred to the stabilization reserve at the end of the year.
Page 95 of 99
Schedule 7
CITY OF KITCHENER
STORM SEWER UTILITY
VARIANCE STATEMENT
for the nine months ended September 30, 2023
2023
2023
2023
2023
2023
2023
Approved
Budget
Actual
Variance
% Variance
Projected Year End
Budget as at September as at September as at September as
at September
Surplus/(Deficit) Comments
Core Revenue 25,396,000
18,995,400
19,201,219
205,819
1.1%
212,000 Current and projected surplus due to increased development.
Other Revenue 1,006,226
762,107
668,669
(93,438)
-12.3%
(89,000)
REVENUE 26,402,226
19,757,507
19,869,888
112,381
0.6%
123,000
Operating Expense 9,061,737 5,490,402 5,311,707 178,695 3.3% 14,000 Current surplus due to staff vacancies.
Transfer to Capital 18,546,000 13,909,500 13,907,371 2,129 0.0% 3,000
EXPENSE 27,607,737 19,399,902 19,219,078 180,824 0.9% 17,000
Net Revenue (Expense)* (1,205,511) 357,605 650,810 293,205 82.0% 140,000
*Net Revenue (Expense) amount will be transferred to the stabilization reserve at the end of the year.
Page 96 of 99
CITY OF KITCHENER
GAS UTILITY
VARIANCE REPORT
for the nine months ended September 30, 2023
GAS DELIVERY
2023
2023
2023
2023
2023
2023
Approved
Budget
Actual
Variance
% Variance
Projected Year End
Budget
as at September as at
September as at
September as at
September
Surplus/(Deficit)
Comments
Core Revenue
44,772,769
31,913,588
31,756,539
(157,049)
-0.5%
801,000
Current and projected deficit due to warmer than expected
winter thereby reducing volume of gas sold. Projectedyear
end surplus due to rate increase as of September.
Other Revenue
184,706
146,019
236,349
90,330
61.9%
95,000
REVENUE
44,957,475
32,059,607
31,992,888
(66,719)
-0.2%
896,000
Operating Expense
19,606,458
14,437,156
14,018,155
419,001
2.9%
(111,000)
Current surplus due to staff vacancies. Projected year end
deficit due to additional locator costs expected to be
incurred this year.
Transfer to Capital
13,704,000
10,278,000
10,277,543
457
0.0%
1,000
Dividend Transfer to City
15,846,926
11,885,195
11,885,195
-
0.0%
-
EXPENSE
49,157,384
36,600,351
36,180,893
419,458
1.1%
(110,000)
Net Revenue(Expense)*
(4,199,909)
(4,540,744)
(4,188,005)
352,739
7.8%
786,000
*Net Revenue (Expense) amount will be transferred
to the Gas Delivery stabilization
reserve at the
end of the year.
OTHER PROGRAMS
2023
2023
2023
2023
2023
2023
(Rental Water Heaters and KU
Approved
Budget
Actual
Variance
%Variance
Projected Year End
Dispatch)
Budget
as at September as at September as at
September as at September
Surplus/(Deficit)
Core Revenue
13,431,951
10,003,420
10,768,663
765,243
7.6%
923,000
Current and projected year end surplus due to increased
rental and warranty recovery revenues than anticipated.
REVENUE
13,431,951
10,003,420
10,768,663
765,243
7.6%
923,000
Operating Expense
9,639,005
7,063,399
7,913,963
(850,565)
-12.0%
(2,215,000)
Current and projected deficit due to higher deprecition costs
and provision for write-down of assets.
EXPENSE
9,639,005
7,063,399
7,913,963
(850,565)
-12.0%
(2,215,000)
Net Revenue (Expense)*
3,792,946
2,940,022
2,854,699
(85,322)
-2.9%
(1,292,000)
*Net Revenue (Expense) amount will be transferred to the Gas Delivery stabilization reserve at the end ofthe year.
GAS SUPPLY
2023
2023
2023
2023
2023
2023
Approved
Budget
Actual
Variance
%Variance
Projected Year End
Budget
as at September as at September as at
September as at September
Surplus/(Deficit)
Core Revenue
45,084,183
30,574,501
30,522,618
(51,883)
-0.2%
(2,338,000)
Year end projected deficit due to warmer than expected
winterthereby reducingvolume of gas sold, in addition to a
reduction in the rate as of September.
REVENUE
45,084,183
30,574,501
30,522,618
(51,883)
-0.2%
(2,338,000)
Operating Expense
44,943,715
30,711,037
28,703,405
2,007,632
6.5%
4,204,000
Current and year end projected surplus due to lower
volumes of gas sold in addition to favourable hedging
strategies.
EXPENSE
44,943,715
30,711,037
28,703,405
2,007,632
6.5%
4,204,000
Net Revenue(Expense)*
140,468
(136,536)
1,819,213
1,955,749
1432.4%
1,866,000
*Net Revenue (Expense) amount will be transferred to the Gas Supply stabilization
reserve at the
end ofthe year.
Schedule 8
Page 97 of 99
City of Kitchener Investment Report
as at September 30, 2023
Comparison of Short -Term Yields
January to September 2023
6.50%
6.00%
5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
P'�- PQM A e
City Investments BankAccount Interest
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*
500,000,000
450,000,000
400,000,000
350,000,000 ♦ s~
I
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
2022 2023
* includes average balance in the overnight bank account
Page 98 of 99
City of Kitchener Investment Report
as at September 30, 2023
Investment Balances
Cash & Short -Term Investments
As at September 30, 2023 INVESTMENT PORTFOLIO AVERAGE
TYPE
BALANCE
SHARE
YIELD
Government of Canada
0
0.0%
0.00%
Provinces
0
0.0%
0.00%
Municipal/Other
0
0.0%
0.00%
Schedule I Banks
347,239,599
96.4%
5.81%
Schedule 11 & III Banks
0
0.0%
0.00%
Credit Unions & Trust Co's
13,032,670
3.6%
5.87%
360,272,269
100%
5.81%
Long -Term Investments
1,000,000
As at September 30, 2023
INVESTMENT PORTFOLIO
AVERAGE
TYPE
BALANCE
SHARE
YIELD
Provinces
11,762,981
21.0%
2.04%
Schedule I Banks
30,966,180
55.3%
1.94%
Schedule 11 & III Banks
9,813,887
17.5%
1.89%
Municipal Government
3,462,769
6%
3.20%
56,005,817
100%
2.03%
Schedule 9 Page 2
Page 99 of 99
Operating
Fund
Accumulated
Interest
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
Z4
2,000,000
Ar
1,000,000
�—
—1r
2022 Actual 2023 Budget 2023 Actual
Average Interest Rate 2022
= 3.44%
Average Interest Rate 2023 = 4.52%
Page 99 of 99