Budgets
de fonctionnement et des immobilisations
2011
– T3 – Rapport d’étape - Programmes soutenus par les tarifs
That Council approve the capital budget adjustment as outlined in
Document 5.
Que le Conseil approuve l’ajustement budgétaire décrit dans le document
5.
DOCUMENTATION :
1.
City Treasurer’s report dated 7 November 2011 (ACS2011-CMR-FIN-0057);
Environment Committee /
Comité de l’environnement
and Council / et au Conseil
November 7, 2011 / le 7 novembre 2011
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
|
Ref N°: ACS2011-CMR-FIN-0057 |
SUBJECT:
|
2011 Operating and Capital
Budget Q3 Status Report – Rate supported |
|
|
|
OBJET :
|
Budgets de fonctionnement et des
immobilisations 2011 – T3 – Rapport d’étape - Programmes soutenus par les tarifs |
1) That
the Environment Committee receive this report
for information; and
2) That the Environment
Committee recommend that Council approve the capital budget adjustment as
outlined in Document 5.
1) Que
le Comité de
l’environnement prenne connaissance de ce rapport; et
2) Que le Comité de
l’environnement recommande au Conseil d’approuver l’ajustement budgétaire
décrit dans le document 5.
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 third quarter operating
and capital results for the Rate Supported Programs along with providing a
forecast to year-end. Compensation
information, showing the actual salary / benefit and the overtime costs
incurred by department and branch for Q3 versus the full year budget, is also
included as Document 3 to this report.
Document 1 provides operating budget detail
and year-to-date and year-end forecast results for the Water and Wastewater
operations while Document 2 provides detailed listing of the capital projects
sorted by category namely, Renewal, Growth and Strategic Initiatives.
Third Quarter Year-to-Date Results, 2011 Forecast
The year-to-date budget figures are prepared
on a “calendarized” basis. Departments
have allocated its 2011 budgets on a monthly / quarterly basis based primarily
on past experience and where applicable, 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.
Document 1 to this report shows the third
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.
A high-level corporate summary of the
operating results, as shown in Document 1, are summarized below in Table 1.
All Branches were asked to review their
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
|
Department / Branch |
YTD
Net Budget |
YTD
Net Actual |
YTD
Net Surplus / (Deficit) |
Forecast Net 2011 Surplus/(Deficit) |
|
|
$000 |
$000 |
$000 |
$000 |
|
Rate Supported Programs |
|
|
|
|
|
Water |
14,185 |
12,061 |
2.124 |
940 |
|
Wastewater |
|
|
|
|
|
- Sanitary |
9,730 |
7,765 |
1,965 |
272 |
|
- Storm |
4,196 |
3,435 |
761 |
219 |
|
Total Rate Supported Programs |
28,111 |
23,261 |
4,850 |
1,431 |
Drinking water consumption volumes and
corresponding revenue as at September 30, 2011, were at 98% of budget. Drinking water expenditures, however, were 97%
of the year-to-date budget at Q3. This
was largely related to $2.2M in compensation savings due to vacancies and $400k
of savings in water production and discharge expenditures related to lower
water volumes, and $300k in deferrals of purchased services as a result of the
discretionary spending freeze in place until April, 2011.
Year-to-date wastewater revenues were 2%
lower than budget at September 30, 2011.
Year-to-date wastewater expenditures, however, were 4% under budget
mainly as a result of the hiring and discretionary spending freeze that
remained in place until the rate supported budget was approved in April, 2011. Wastewater compensation savings of $2.2M were
realized at Q3.
The overall 2011 Forecast indicates that Rate
Supported Programs will be in a surplus position of $1.4M. Expenditure savings experienced up to
September 30, 2011 will lessen as some costs which were deferred will now be
incurred in Q4. These savings are offset
by reduced revenues given water consumption volumes are expected to remain 2%
below budget for the balance of the year.
The net financial impact of the outdoor water
ban impacting Barrhaven, Riverside South and Manotick included $1.5M of
expenditures, which were fully funded from the Drinking Water Reserve
Fund. Hence, this had no bearing on the
surplus for Drinking Water at September 30, 2011 or on the 2011 forecasted
results. Note that the total
expenditures were $0.5M lower than had been originally estimated as a result of
the reduced timeframe for the outdoor water ban. Additionally, reduced revenues of $450k have
been estimated based on a comparison to water volumes for the similar period in
the previous year for the area impacted.
This compares to the original estimate of $500k - $850k.
Q3
Compensation Results
Document 3 provides compensation information
showing the actual salary / benefits and overtime costs incurred by departments
for Q3 versus the full year budget. For
water and wastewater operations, total year-to-date compensation as a
percentage of the annual budget is 67 % spent.
Capital Projects / Programs
Document 2 provides a listing of
the capital program that are water and wastewater related. 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 $0.92 billion, of which $0.26 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 of all water and wastewater related 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 all water and wastewater related capital budget adjustments that require Council approval as they exceed the delegated authority limits established in By-law 2009-231. An explanation for each adjustment is also provided.
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.
N/A
There are no legal impediments to implementing the recommendations in this report.
RISK MANAGEMENT IMPLICATIONS
There are no risk implications.
As detailed in the
report.
ACCESSIBILITY
IMPACTS
There are no accessibility impacts.
There are no technology implications in this report.
There are no impacts on the City’s Strategic Plan.
Document
1 – 2011 Q3 Operating Status Report (at September 30, 2011)
Document 2 –
Capital Works in Progress
Document
3 – 2011 Q3 Compensation Summary, 2011 Q3 Compensation Results
Document 4 – Water,
Wastewater related Capital Budget Adjustments processed under Delegated Authority
Document
5 – Water, Wastewater related Capital Budget Adjustments requiring Council
Approval
Upon approval of this report, Financial Services will process the necessary capital budget adjustments.