Document 1 Operating Results Summary – Tax Supported Programs

 

 

 

 

 

 

 

Document 2 – Variance Analysis – 2010 Operating Results – Tax Supported Programs

 

 

·         Emergency & Protective Services: Approximately half of the deficit relates to delayed savings in productivity target in Fire Services.   These productivity targets savings are unrealized as they are tied to the redeployment of fire staff to the new Barrhaven South Fire Station, which is to open in 2011.  The remaining deficit relates to insurance claims for paramedic services.

 

·         Community and Social Services: The City received increased revenues including one-time funding for Ontario Works, increased Parental fees as a result of the Provincial Policy for income testing subsidized child care recipients and increased per-diems from the Province for family shelters. Reconciliation of Housing providers’ budgets and reduced use of child care spaces due to the uncertainty surrounding the introduction of the Early Learning Program also contributed to the surplus.

 

·         Parks, Recreation & Cultural Services: The deficit resulted primarily from increased spending for program growth greater than budget, increased staffing cost from implementation of the unbudgeted wristband program requiring testing of children swimming at all City aquatic facilities and an increased training requirement for all part time staff  as a result of the Accessibility for Ontarians with Disabilities Act partially  offset by increase revenue from program growth and additional one-time Provincial funding.  A revenue loss as a result of the closure of recreational facilities for capital repairs and federal infrastructure stimulus funding improvements accounted for the balance of the deficit. 

 

 

 

·         Solid Waste Services: The solid waste services program includes the recycling and diversion program which is funded from taxation, and the solid waste collection and disposal program which is funded through separate fees based on usage.   There were lower processing costs in Organics Processing, Green Bin collection and leachate hauling/treatment.   As well, revenue on recyclables were higher than expected due to improved market conditions for recycling materials.  In accordance with Council By-laws, the $1.0 million solid waste rate surplus was transferred to the Solid Waste Rate Reserve Fund.    

 

 

·         Government and Political Support (Elected Officials): The deficit is of a one- time nature as a result of severance payments associated with the 2010 municipal election.

 

·         City Clerks & Solicitor:  The deficit was created by extra costs related to the 2010 election including accessibility preparations, a larger ballot size, and an estimate of the final cost of the Election Rebate program. 

 

·         Information Technology Services: Costs exceeded budget due to increases in software license and maintenance fees required to maintain existing contractual commitments for ongoing vendor support.

 

·         Human Resources: There were increased costs to meet additional demands for employee training and development, including second language training. 

 

 

 

 

·         Sale of Surplus Land: Surplus land sales are not budgeted for on an annual basis since the land available for sale will vary widely from year to year.

 

·         Ottawa Lands Development Corporation:  This corporation was established by City Council to promote the sale of excess City lands.  The $5.5 million in 2010 budgeted land sales are not funded in the 2010 disposition since theses sales are expected to be confirmed during 2011.  


 

 

 

·         Self Insurance: Claim levels vary from year to year and are for the most part expensed to applicable departments based on the nature of the claim. 

 

 

 

·         Procurement: Procurement savings of $5million were budgeted.  $2 million cannot be achieved in 2010 and is carried forward to 2011. 


 

 

 

·         Sinking Fund/ Contribution to Environmental Lands Reserves: The Sinking Fund does not form part of the year end surplus.  In accordance with Council direction (Finance and Economic Development Committee March 1, 2011- ACS20011-CMR-FIN0012) these funds were transferred to the Environmental Land Reserve Fund.

 

·         Hydro Ottawa: The City receives an annual payment from Hydro Ottawa equal to the greater of $14 million or 60% of Hydro Ottawa’s net income as outlined in Council-adopted dividend policy.  The 2010 dividend received is reflective of Hydro Ottawa’s earnings that are in excess of the minimum required by the City under the dividend policy. 

 

·         Investment Income: the $4.8 deficit reflects the continued low interest rate environment in 2011.  The investment income budget has been adjusted in 2011.

 

·         Provincial Offences Act:  The dollar value of tickets issued was lower than anticipated. 

 

 

 

·         Supplementary Assessment and Tax Rebates & Remissions: Supplementary assessment tax billing revenues are based on data received from the Municipal Property Assessment Corporation (MPAC).  The City budgets these on an average growth basis.   The actual revenues will fluctuate from year to year.  Tax Rebates and Remissions fluctuate significantly depending on the caseload under appeal with MPAC. 

 

·         Payments In Lieu of Taxation: A revenue shortfall in payments in lieu of taxation is due to changes in the sector and the impact of commercial tax rate calculations being lower than projected. 

 

 

 

 

 

 

·         Planning and Growth Management: The $0.37 million shortfall comes from lower development application revenues compared to budget.  A comprehensive fee review is underway to address revenue issues and is scheduled for completion in Q1 2011.  Expenditures were managed to substantially offset the revenue shortfall. 

 

·         Building Code Services: Permit fees are based on the value of construction.  Revenues are higher because the value of construction was higher than anticpated and thus has increased the permit fees.  The higher revenues reflect larger projects due to federal and provincial stimulus programs and higher construction costs.  The expenditure deficit reflects the contribution of the surplus to the Building Code Deferred Revenue Account, in accordance with the Building Code Act.


 

 

 

 
 

 

 

 

·         Roads & Traffic Maintenance:  The surplus results from savings in winter control costs due to mild winter and one-time expenditure savings and capital recovery as a result of the Federal Economic Stimulus Program.  A surplus of $8.3 million for winter operation is recommended to be contributed to the Winter Operations Reserve. 

 

·         Parking Operations:  The parking operations surplus of $0.17 million was contributed to the Parking Reserve Fund in accordance with approved Council By-law. 


 

 

 

 

 

·         Ottawa Police:  The $1.9 million surplus resulted from lower than expected retirements. On a business area basis; the surplus attributed to the police share of the tax levy is $3.6 million and includes a share of the surplus in supplementary tax assessments.

 

Document 3 – 2011 Continuity of Reserve and Reserve Funds