Report to/Rapport au:
Planning and Environment Committee
Comité de l’urbanisme et de l’environnement
9 November 2010 / le 9 novembre 2010
Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière municipale
Contact Person/Personne ressource: Joanne Farnand, Manager, Financial Services/ Gestionnaire services financiers
Finance Department/Service des finances
613-580-2424 ext./poste 22712, joanne.farnand@ottawa.ca
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Ref N°: ACS2010-CMR-FIN-0068 |
REPORT RECOMMENDATION
That the Planning and Environment Committee receive this report for information.
RECOMMANDATION DU RAPPORT
Que le Comité de l’urbanisme et de l’environnement prenne connaissance du présent rapport.
BACKGROUND
Quarterly operating/capital status reports are prepared as part of the reporting framework approved by Council. Operating reports present actual year-to-date revenues and expenditures against the amounts previously budgeted for the corresponding period. Year-end forecasts are also presented in the second and third quarter reports. Capital reports provide a detailed listing of the capital projects/programs currently in progress.
DISCUSSION
Document 1 provides operating budget detail, year-to-date results, and forecasted year-end results for the various Departments / Branches reporting to Committee. Rate supported and tax supported programs are reported separately.
Document 2 provides detailed listing of the status of capital projects / programs of the Departments / Branches reporting to Committee sorted by category, namely, Renewal, Growth and Strategic Initiatives. Rate supported and tax supported programs are reported separately.
Documents 3 and 4 provide a listing of capital budget adjustments that have been processed under Delegated Authority for the period of May 11, 2010 to September 30, 2010. Both documents are provided for information.
Third Quarter Year-to-Date Results & Forecasted Year End
The year-to-date budget figures are prepared on a “calendarized” basis. Actual expenditures and revenues are compared against budget for the corresponding time frame. Staff have prepared forecasts of operating expenses and revenues for the full year, taking into account results achieved year to date.
Actual and forecasted operating results for rate and tax supported programs are summarized in the following two tables. Additional information is provided where there is a significant variance from budget. Further detail at the department/branch level can be found in Document 1.
On an overall basis, projected 2010 financial results are
favourable for both rate and tax supported programs reporting to Committee.
PEC – Rate Supported Programs
Drinking Water Services
Water consumption rates at Q3 are 3.4% higher than 2009 and approximately on par with 2008 levels. It is anticipated that the increased consumption of water in 2010 will continue for the balance of the year and this will generate incremental revenues of $2.8 million at year end. Growth in consumption in 2010 is due to a number of factors, these include: services being provided to Russell Township effective May, 2010 accounting for approximately 20% of the overall volume increase; and regular growth within the municipality from the 2% added customer accounts in 2010. The warm and dry spring and summer conditions experienced in 2010 also increased consumption levels over the previous years.
Expenditures savings have resulted from: staffing vacancies; milder winter conditions reducing heating, hydro and water system repair requirements; and favourable pricing for chemicals. These are unanticipated savings which are non-recurring in nature. Savings in water production costs have also been realized and can be partly attributed to the renewal and rehabilitation of drinking water infrastructure. The Q3 deficit regarding non-departmental expenses is a timing difference where the debt service budget did not reflect the actual timing of outlays by quarter.
Wastewater Services
The third quarter surplus in Wastewater Services expenditures is mainly due to savings in Compensation due to vacancies. This was somewhat offset by reduced levels of lab and sewer surcharge recoveries.
Sewer surcharge revenues are forecasted to generate additional revenues of $2.3 million which are directly related to increased water consumption rates. As indicated above water consumption rates at Q3 are 3.4% higher than 2009 and approximately on par with 2008 levels.
PEC – Tax Supported Programs
Planning and Growth Management
Although application numbers have improved in 2010 by 24% over 2009, revenue expectations have not shown a corresponding increase. This is due in part to the changing size and nature of applications. The comprehensive fee review, which is currently underway, will address this. A report to Committee and Council providing recommendations for an appropriate cost recovery regime will be presented early in 2011.
Solid Waste Services
The third quarter surplus in Solid Waste Services expenditures is mainly due to the start up of the newly implemented Green Bin program. Increases are expected in organics tonnages as customers continue to increase participation in the program and these are reflected in the year end forecast. Expenses will be approximately $1.6 million under budget in 2010 given the lower initial volumes for organics processing. Organics and recycling collections costs will similarly be under budget given lower than anticipated volumes.
Waste Disposal and Landfill Operations expenditures will remain under budget for reasons including: reduced requirements for leachate hauling, lower volumes of waste being sent to the Plasco site, and delays in the start up of some activities at the Trail Road landfill.
The recycling material markets have significantly improved in the current year, it is estimated that this will contribute excess revenue of approximately $2.0 million in 2010. This more than offsets lower tipping fees revenues of $1.4 million resulting from lower ICI tonnages being received at Trail Road.
Capital Projects/Programs
Document 2 provides a listing of the capital program provide by the Department/Branches reporting to PEC. The listing identifies the lead department, Ward, financial status – budget vs. actual and anticipated completion date. The total for Rate capital works in progress is $832 million, of which $238 million is uncommitted to date. The total for Tax capital works is $169 million, of which $43 million is uncommitted.
RURAL IMPLICATIONS
There are no rural implications associated with this report.
CONSULTATION
The purpose of this report is administrative in nature and therefore no public consultation is required. All Departments reporting to Committee were consulted in the preparation of this report.
LEGAL/RISK MANAGEMENT IMPLICATIONS
There is no Legal/Risk Management impediment to the approval of this Report's recommendations.
TECHNICAL IMPLICATIONS
None.
FINANCIAL IMPLICATIONS
As outlined in the report.
SUPPORTING DOCUMENTATION
Document 1 – 2010 September 30th Operating Results Summary
Document 2 – Capital Works in Progress
Document 3 – Tax Supported Budget Adjustments Processed Under Delegated Authority
Document 4 – Rate Supported Adjustments Processed Under Delegated Authority
DISPOSITION
The results of operations contained in this report will be incorporated in the 2010 Operating Budget Status Report – Q3 - Corporate Status Report.