Waste Management Services Statement of Operations - Quarter 2 Financial Update (2016)

		Year to Date				Annual
		Budget	Actual	Budget vs Actual Variance Favourable/(Unfavourable)		Budget	Forecast	Budget vs Forecast Variance Favourable/(Unfavourable)
Expenses
Compensation		$ 1,761,314	$ 1,687,783	$ 73,531	4.4%	$ 3,517,720	$ 3,444,189	$ 73,531	2.1%
Administrative		1,046,937	343,595	703,343	204.7%	1,807,273	1,683,853	123,420	6.8%
Operational & Supply		19,051,590	17,705,841	1,345,749	7.6%	37,930,272	36,357,252	1,573,020	4.1%
Occupancy & Infrastructure		621,850	595,281	26,569	4.5%	1,242,700	1,276,513	(33,813)	(2.7%)
Equipment, Vehicles,Technology		618,646	405,281	213,364	52.6%	1,235,531	1,057,555	177,976	14.4%
Partnership, Rebate, Exemption		75,598	74,789	809	1.1%	151,196	150,387	809	0.5%
Financial Expenditures		-	5,486	(5,486)	(100.0%)	-	5,486	(5,486)	0.0%
Total Expenses		23,175,935	20,818,057	2,357,878	11.3%	45,884,692	43,975,234	1,909,458	4.2%
Revenues
Taxation		(17,650,648)	(18,448,634)	797,986	(4.3%)	(35,301,296)	(35,301,296)	-	0.0%
By-Law Charges & Sales		(6,303,177)	(5,949,972)	(353,205)	5.9%	(12,606,354)	(12,699,230)	92,876	(0.7%)
Other Revenue		(2,084,777)	(2,328,511)	243,735	(10.5%)	(4,169,553)	(4,410,490)	240,937	(5.8%)
Total Revenues		(26,038,602)	(26,727,118)	688,516	(2.6%)	(52,077,203)	(52,411,017)	333,813	(0.6%)
Intercompany Charges
Intercompany Charges		55,517	38,080	17,438	45.8%	110,718	93,280	17,438	15.7%
Total Intercompany Charges		55,517	38,080	17,438	45.8%	110,718	93,280	17,438	15.7%
Net Expenditure (Revenue) Before Transfers & Indirect Allocations		(2,807,149)	(5,870,981)	3,063,832	(52.2%)	(6,081,793)	(8,342,502)	2,260,709	(37.2%)
Transfers
Transfers From Funds		(244,233)	(244,233)	-	0.0%	(244,233)	(244,233)	-	0.0%
Transfers To Funds		1,598,988	1,598,988	-	0.0%	3,197,975	3,197,975	-	0.0%
Total Transfers		1,354,755	1,354,755	-	0.0%	2,953,742	2,953,742	-	0.0%
Indirect Allocations & Debt
Indirect Allocation		676,143	667,305	8,838	1.3%	1,359,826	1,393,831	(34,005)	(2.5%)
Capital Financing Allocation		933,973	928,793	5,180	0.6%	1,768,227	1,759,774	8,453	0.5%
Total Indirect Allocations & Debt		1,610,116	1,596,098	14,018	0.9%	3,128,053	3,153,605	(25,552)	(0.8%)
Net Expenditure (Revenue) After Transfers & Indirect Allocations		$ 157,722	$ (2,920,128)	$ 3,077,851	(105.4%)	$ 2	$ (2,235,155)	$ 2,235,157	90345897.3%

 

Variance Analysis

Waste Management is operating at a year-to-date surplus before indirect allocations of $3,063,832 and is forecasting an overall surplus of $2,260,709 at the end of the year. The following factors have contributed to these variances:

Compensation

The favourable year-to-date and forecasted variances of $73,531 are primarily due to natural delays in filling vacant positions.

Administrative

The favourable year-to-date and forecasted variances of $703,343 and $123,420 are primarily due to the deferral of the Long-Term Strategic Plan Study (deferred until Q4) and the Service Level Review and Optimization Study (deferred until post 2016 due to Bill 151).

Operational & Supply

The favourable year-to-date and forecasted variances of $1,345,749 and $1,573,020 are primarily due to lower-than-anticipated organic tonnages being processed at Walker Industries' landfill ($317,465); carpet and mattress recycling depot programs on hold as a result of the processor shutting down and no other markets available ($94,839); waste/recycling/organics collection contract escalation increases being lower than budgeted ($165,170); reduction in volumes of recyclables purchased ($61,895) and processed from Waterloo ($174,157) at Recycling Centre and volumes of waste landfilled at Walker Industries ($66,119); and operational costs of the Household Hazardous Waste (HHW) permanent depots being less than budgeted ($100,041).

Equipment, Vehicles & Technology

The favourable year-to-date and forecasted variances of $213,364 and $177,976 are primarily due to the full maintenance of five groundwater pumping wells not being completed (waiting for Ministry of Environment and Climate Change approval); decreased gas prices; and a decrease in spending on repairs for processing line equipment.

Taxation

he favourable year-to-date variance of $797,986 is due to the timing of an invoice issuance for Q3 municipal requisition.

By-law Charges & Sales

The unfavourable year-to-date variance of $353,205 is primarily due to decreases in Blue Box recyclable tonnages processed and market pricing for various commodities during Q1 and Q2. Increased commodity pricing in Q3 and Q4 is expected resulting in a favourable variance of $92,876.

Other Revenue

The favourable year-to-date and forecasted variances of $243,735 and $240,937 are primarily due to increased Waste Diversion Ontario funding received for the Blue Box program.

Community Impacts & Achievements

Waste Management Services is responsible for the operation of various facilities, including landfill sites, HHW depots and the Recycling Centre. WMS is also responsible for the delivery of curbside waste, recycling and organics collection and diversion programs, the management of long-term organics processing and disposal contracts, the operations and maintenance contracts at open and closed landfill sites, the operation of a Regional Recycling Centre (a net revenue generator) and the policy development and capital program delivery. In addition to the operation of permanent drop-off depots, diversion initiatives include special event days for diverting recyclables, electronics, HHW, scrap metal and other materials, supporting outreach and communications.

Project Updates & Accomplishments

• Reuse centre/drop-off depot expansion partnership with Grimsby Benevolent Fund
• Negotiated contract extensions for collection and processing
• Approval of expanded collection services to industrial, commercial & institutional properties
• Partnership with District School Board of Niagara to set up a Bicycle Recycling Program
• Permanent HHW Depots operational at Humberstone Landfill in Welland and Thorold Public Works Yard, in addition to a partial depot at the Bridge Street public drop-off depot
• Capacity fully utilized at the Bridge Street Landfill
• Illegal Dumping Working Group Partnership Between the Region, Local Area Municipalities and Crime Stoppers
• Approval of various diversion programs for the Multi-Residential Sector
• Curbside Waste Composition Study completed
• Niagara is the recipient of a Municipal Waste Association Communications/Promotion and Education award (silver) for the Green Bin Campaign