Report
to/Rapport au :
Finance and
Economic Development Committee
Comité des finances et du développement économique
and Council /
et au Conseil
24 April 2012 / le 24 avril 2012
Submitted by/Soumis par: Marian Simulik, City
Treasurer/trésorière municipale
Contact Person/Personne-ressource:
Tom Fedec, Manager Budget and Financial Planning, Finance /
Gestionnaire, Planification budgétaire et financière, Finances
613-580-2424 ext./poste
21316, Tom.Fedec@ottawa.ca
|
SUBJECT: |
|
OBJET : |
Budgets de fonctionnement et des immobilisations 2012 – T1 - Rapport
d’étape |
That the Finance and Economic
Development Committee:
1.
Receive this report for information;
and
2.
Recommend Council approve the capital
budget adjustments as outlined in Document 5
Que le Comité des finances et du développement économique :
1.
Prenne
connaissance de ce rapport; et
2.
Recommande au
Conseil d’approuver les ajustements budgétaires décrits dans le document 5.
Background
Quarterly operating and 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 listing of the
capital projects / programs, the authorized expenditure budgets, along with the
actual expenditures and commitments incurred to date.
The purpose of this report is to
present the first quarter operating and capital results for City Wide Tax
Supported Programs and Rate Supported programs along with providing an overview
of any issues or risks that will be monitored during the year and reported upon
in subsequent quarterly reports.
Compensation information, showing the actual salary / benefit and the
overtime costs incurred by department and branch for Q1 versus the full year
budget, is also presented in this report. First quarter results for Police Services,
Library, Public Health and Transit operations will be presented in separate
reports.
DISCUSSION
Document 1
provides operating budget detail on year-to-date results for the various
Departments / Branches.
Document 2
provides detailed listing of the capital projects of the below noted Departments
/ Branches sorted by category namely, Renewal, Growth and Strategic
Initiatives.
First Quarter year-to-Date Results
The
year-to-date budget figures are prepared on a “calendarized” basis. Departments have allocated their 2012 budgets
on a monthly / quarterly basis based primarily on past experience. Programs such as winter maintenance and
recreational programs (outdoor pools / beaches) have definite seasonal spending
patterns. There are other program
expenditures or revenues which are not seasonal in nature or do not occur
evenly through the year. These are
therefore more difficult to allocate to a specific month or months. These types of program costs or revenues may
occur at specific time periods during the year, for example, a maintenance
contract may be expected to be paid by the end of March – therefore the budget
is reflected in March.
A high-level
corporate summary of the operating results for each City department, as shown
in Document 1, are summarized below in Table 1.
Document 1 shows the first quarter actual expenditures and revenues
compared to the same period budget. For
reference purposes, the annual budget for the department or program area is
also provided. At this point in the
year, it would be expected that the majority of actual results against budget
for the first quarter would be close to the 100% level. Although the results for the first quarter
indicate a small deficit, the June 30 Status Report will provide a better
indication as to whether actual spending and revenues are tracking to budget
and whether any mitigation measures need to be undertaken.
All
Departments / Branches were asked to review their first quarter results to
ensure that their respective spending and revenue results were not indicative
of any underlying issues needing to be highlighted or addressed at this
time. Additional information on specific
program areas is provided below where a significant variance from budget has
occurred.
Table 1 – 2012 Q1 Operating Results
|
|
1st Qrt |
1st Qrt |
YTD Net Surplus
/ (Deficit) |
|
$000 |
$000 |
$000 |
|
|
Tax Supported |
|
|
|
|
Elected Officials |
2,707 |
2,503
|
204 |
|
Office of the Auditor General |
248 |
252 |
(4) |
|
City Manager's Office |
15,010
|
15,199 |
(189) |
|
City Operations |
170,571 |
174,369 |
(3,798) |
|
Planning & Infrastructure |
3,414
|
2,591
|
823
|
|
Non Departmental Accounts |
(698,077) |
(700,379) |
2,302 |
|
Total Tax Supported - City Services |
(506,127) |
(505,465) |
(662) |
|
|
|
|
|
|
Transit Commission |
53,758
|
54,508 |
(750) |
|
Crime Prevention Centre |
95 |
103 |
(8) |
|
Committee of Adjustment |
(5) |
60 |
(65) |
|
Public Health Board |
2,748 |
2,748
|
- |
|
Library Services |
9,847 |
9,859
|
(12) |
|
Police Services |
57,782
|
57,782 |
- |
|
External Boards, Commissions & Agencies |
124,225 |
125,060 |
(835) |
|
Total Tax Supported Programs |
(381,902) |
(380,405) |
(1,497) |
|
Water |
(9,572) |
(10,856) |
1,284 |
|
Wastewater |
(9,956) |
(8,314) |
(1,642) |
|
Total Rate Supported Programs |
(19,528)
|
(19,170) |
(358) |
|
Total Tax & Rate Supported Programs |
(401,430) |
( 399,575) |
(1,855) |
City
Operations $3,798 million deficit
The main
areas contributing to the first quarter deficit are follows:
·
Housing $1.198 million surplus
Housing
provider reconciliations continue throughout the year and can result in an increase
or decrease in expenditures. The reconciliations to date have resulted in lower
expenditures. As well the Short-Term
Rent Support – Ottawa Extension program had the eligibility criteria, rules and
implementation plan approved by Council at the end of January causing a
year-to-date surplus. Any surplus from the Housing & Homelessness
Investment Plan (H&HIP) is transferred to capital to re-invest in the
H&HIP Social Housing Repairs / Renewal.
·
Roads & Traffic Management $3.879 million
deficit
The
deficit in this program relates primarily to increased cost in winter
maintenance operations due to the abnormal number of freezing rain events in
January and February.
Planning
& Infrastructure Services $0.823 million surplus
·
Planning and Growth Management - surplus in
revenues due mainly to increased temporary encroachment permits resulting from
large condominium developments staging construction works on the City’s
Right-of-Way.
Non
Departmental Accounts $2.302 million surplus
·
The surplus is attributable to the receipt of
revenues from the sale of surplus properties.
Revenues from this source are not budgeted since the amount of land
available for sale will vary significantly from year to year.
Boards and Commissions - $0.835 million deficit
The main area contributing to the first quarter results is in transit
services. Details on Q1 results will be
submitted to each of the respective boards and commission as follows:
Police Services
April 27
Transit Commission June
20
Library Services May 1
Public Health May 7
Q1 Compensation Results
Document 3
provides compensation information showing the actual salary / benefits and
overtime costs incurred by departments for Q1 versus the full year budget. On a corporate basis, actual overtime costs
as a percentage of the annual budget are 35% spent. The main area contributing to these results
is in Public Works – Roads & Traffic Maintenance. Overtime usage in the first quarter is
reflective of the seasonal nature of this service.
Overall
total actual compensation costs for the first quarter were 25% of the full year
2012 compensation budget.
Staffing – Retirements
City Council at its meeting of March
24, 2010 approved the following motion with respect to positions that become
vacant due to retirement:
“That staff routinely analyze each
position that will become vacant due to retirement looking at the job
description, compensation level and whether work could be consolidated with
another position and report to Committee on the results of such analysis on a
quarterly basis.”
Results in Q1
2012 indicate that eighty-five positions were vacated by active employee
retirements. Of this total, fifty-five positions were planned for staffing with no
change in job requirements. Twenty-two positions were placed on hold while job
and organizational requirements are examined. Five positions were
referred for review under our job evaluation system with three positions
re-evaluated to date. Of these re-evaluations two positions remain at the
same pay level and one position decreased by two pay grades. During this
quarter three positions were deleted from departmental position
allocations.
Provision for Unforeseen
and One Time Expenditures
The
2012 budget contained a provision of $2.8 million to address expenditures of a
one-time nature and unforeseen expenditures that may occur during the
year. Through the 2012 budget process,
Council approved spending of $0.730 million against this provision for:
·
replacement of the integrated claims and
insurance database ($0.200 million).
·
employment survey conducted every five years to collect data
used to finalize results of the 2012 origin-destination transportation survey
($0.130 million)
·
revitalization and renewal of Planning and Growth
Management, including the creation of a Green Team ($0.400 million)
No
additional requests for funding have been approved by Council in the first
quarter, resulting in a remaining balance of $2.070 million in the provision.
Budget Adjustments and Transfers
A summary
of the budget adjustments and transfers made in the first quarter of 2012,
either through the delegated authority given to the City Treasurer or through
Council-approved reports is reproduced in the following two tables.
Adjustments
between departments (Table 2) were made to reflect administrative adjustments
and to realign program costs and revenues.
These adjustments do not result in any increase or decrease to the total
corporate expenditure or revenue budgets.
Table 3 summarizes the budgets adjustments made that have increased /
decreased the City’s overall expenditure or revenue budget.
Table 2 - Intra-departmental Budget Adjustments &
Transfers
|
$ Millions
|
|
|
Transfer of 1 FTE from Transit
to Finance |
0.070 |
|
Transfer of 1 FTE from Services Ottawa to City Manager's Office |
0.040 |
|
Transfer of 4 FTE from Social Services to General Manager of Social Services |
0.065 |
|
Transfer of 1 FTE from Child Care to General Manager of Social Services |
0.039 |
|
Transfer of 1 FTE from By Law
Services to Service Ottawa |
0.079 |
|
Transfer of 1 FTE from By Law
Services to Security & Emergency
Management |
0.073 |
|
Transfer of 1 FTE from Solid
Waste to Wastewater Services |
0.089 |
|
Realignment of Ottawa Youth Commission Program from General Manager of
Social Services to Community Development & Funding |
0.029 |
|
Realignment of Sponsorship Program from Real Estate Partnerships & Development to Parks
& Recreation Services |
(0.215) |
|
Service Ottawa saving from Roads & Traffic Maintenance through to
Transit |
(0.128) |
|
Realignment of Senior Initiative Program from City Manager's Office to
Community Development & Funding |
0.500 |
|
Realignment of Community Agency Funding from Community Development
& Funding to Housing and Child Care |
0.057 |
|
Realignment of New Lease Contracts from Real Estate Partnerships &
Development to Various Departments |
(0.060) |
|
Realignment of General Manager of Social Services to Community
Development & Funding |
0.698 |
|
Transfer Electronic Ambulance Call Solutions from paramedics to
Information Technology |
0.061 |
|
Service Ottawa savings - Infrastructure Services reduced recoveries to
capital projects |
0.215 |
Table 3 - Budget Adjustments & Transfers Impacting
Overall Expenditures / Revenue
|
Nature
of Budget Adjustment |
$
Millions |
Funding
Source |
Net
Effect on Budget Revenues & Expenditures |
|
Administrative
adjustment to amend the debt servicing charges by functional area and to
reflect funding sources in Solid Waste, Water and Waste Water |
3.658 |
City Wide
Reserves / Development Charges |
Increase in
Revenue & Increase in Expenditure |
|
Additional
funding for Home Support Services &Ontario Works changes for bus tickets
& discretionary employment benefits |
0.110 |
Provincial
Funding |
Increase in
Revenue & Increase in Expenditure |
|
Funding from
Ministry of Training, Colleges and Universities ceases July 31, 2012 |
(0.785) |
Provincial
Funding |
Decrease in
Revenue & Decrease in Expenditure |
|
One-time funding
from 2011 surplus for Committee of Adjustment as approved by Council
ACS2012CMR-FIN-0008 |
0.217 |
City Wide
Reserves |
Increase in
Revenue & Increase in Expenditure |
Document 2 provides a listing of the capital
program provided by the Department/Branches that are tax supported. Separate Q1 reports for the Transit
Commission and the Environment Committee (Water and Sewer supported) will
provide a status on projects that are under their respective mandates.
The listing identifies the lead department,
Ward, financial status – budget versus actual results and anticipated
completion date. The total for capital
works in progress is $5.321 billion, of which $1.835 billion is uncommitted to
date. The capital listing indicates that
projects are generally on track with no significant issues noted.
Capital Budget Adjustments
Document 4 provides a listing for the
information of Committee and Council of all capital budget adjustments that
have been processed under delegated authority since April 2011. These have been processed under the authority
delegated to the City Treasurer under By-law 2009-231.
Document 5 provides a listing of
capital budget adjustments that require Council approval as they exceed the
delegated authority limits. An
explanation for each adjustment is also provided by the requesting department.
There are no rural implications.
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.
There are no legal impediments to receiving
this report for information.
There are no risk implications.
As outlined in the report.
TECHNOLOGY
IMPLICATIONS
There are no technology implications
with this report.
CITY
STRATEGIC PLAN
There are no impacts on the City’s
Strategic Plan.
SUPPORTING
DOCUMENTATION
Document 1 - Operating Results Summary March 31,
2012
Document 2 – Capital Works in Progress (Link to the Corporate Capital Summary can be
accessed from the on-line version of the report on the City’s web site)
Document 3 – 2012 Q1 Compensation Summary
Document 4 – Capital Budget Adjustments processed under
Delegated Authority
Document 5 - Capital Budget Adjustments requiring
Council Approval
DISPOSITION
Report is
provided for information to Committee and Council. No action is required upon approval of the
report recommendations.