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General Government - 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 $- $6 $(6) (100.0%) $- $6 $(6) (0.0%)
Administrative 2,969,223 2,904,711 64,511 2.2% 5,938,445 5,854,161 84,284 1.4%
Occupancy & Infrastructure 27,300 14,124 13,176 93.3% 54,600 48,076 6,524 11.9%
Partnership, Rebate, Exemption 1,664,314 423,941 1,240,373 292.6% 7,373,628 7,669,675 (296,047) (4.0%)
Financial Expenditures 14,946,919 14,150,135 796,784 5.6% 43,674,752 43,588,819 85,934 0.2%
Total Expenses 19,607,755 17,492,917 2,114,838 12.1% 57,041,425 57,160,737 (119,311) (0.2%)
Revenues
Taxation (161,121,243) (161,017,693) (103,550) 0.1% (338,299,869) (338,273,833) (26,036) 0.0%
By-Law Charges & Sales (40,000) (19,479) (20,521) 105.3% (80,000) (59,479) (20,521) 25.7%
Other Revenue (5,400,771) (7,250,162) 1,849,391 (25.5%) (11,889,805) (13,326,863) 1,437,058 (12.1%)
Total Revenues (166,562,014) (168,287,334) 1,725,321 (1.0%) (350,269,674) (351,660,176) 1,390,502 (0.4%)
Intercompany Charges
Intercompany Charges (33,984) 60,000 (93,984) (156.6%) (67,968) 1,014 (68,982) 101.5%
Total Intercompany Charges (33,984) 60,000 (93,984) (156.6%) (67,968) 1,014 (68,982) 101.5%
Net Expenditure (Revenue) Before Transfers & Indirect Allocations (146,988,243) (150,734,418) 3,746,175 (2.5%) (293,296,217) (294,498,425) 1,202,209 (0.4%)
Transfers
Transfers from Funds (3,430,167) (3,430,167) - 0.0% (9,471,699) (9,495,049) 23,350 (0.2%)
Transfers to Funds 17,451,464 17,461,514 (10,050) (0.1%) 27,861,523 27,630,636 230,887 0.8%
Total Transfers 14,021,297 14,031,347 (10,050) (0.1%) 18,389,824 18,135,587 254,237 1.4%
Indirect Allocations & Debt
Capital Financing Allocation (24,957,031) (24,871,403) (85,628) 0.3% (59,675,034) (59,675,035) - 0.0%
Total Indirect Allocations & Debt (24,957,031) (24,871,403) (85,628) 0.3% (59,675,034) (59,675,035) - 0.0%
Net Expenditure (Revenue) After Transfers & Indirect Allocation $(157,923,977) $(161,574,474) $3,650,497 (2.3%) $(334,581,427) $(336,037,873) $1,456,446 (0.4%)

Variance Analysis

Partnership, Rebate, Exemption

The favourable year-to-date variance of $1,240,373 is primarily due to the timing of the issuance of Smarter Niagara Incentive Grants ($424,000), Development Charge Grants ($150,000) and Tax Increment Funding ($413,000). All are expected to be issued in the second half of the year. Vacancy rebates are anticipated to be higher than budgeted during the remainder of the year, resulting in a forecasted unfavourable variance of $296,047.

Financial Expenditures

The favourable year-to-date variance of $796,784 is primarily due to the timing of property tax write-offs invoiced from local area municipalities (LAMs) ($871,466).

Other Revenue

The favourable year-to-date and forecasted variances of $1,849,391 and $1,437,058 are primarily due to investment income being higher than budget.

Community Impacts & Achievements

The General Government department consists of:

  • Net Levy Taxation Revenue: The Region has the responsibility to fund costs associated with Property Assessment Services which are provided by the Municipal Property Assessment Corporation (MPAC)
  • Investment Income: The Region owns and earns income on investments held with different institutions (see investment report for further details)
  • Economic Incentives and other support: The Region contributes funding to the Niagara Health System's New Cancer Centre as well as grants related to development charges, the Youth Retention Program, and the Smarter Niagara Incentive Project
  • Capital Financing: The Region funds its capital programs through multiple financing sources such as capital levy reserve contributions and debt charges.

On July 6, 2016 Niagara Region's annual capital market debenture issue settled for a total of $52,852,000 ($27,875,893 for Niagara Region and $24,976,107 split among 6 local area municipalities. All debentures were purchased despite close to historical low yields. The 10-year all-in cost of the debenture financing was 2.068%, which was the lowest ever achieved.

Approved 65 grants through the Industrial Development Charge Grant Program, creating 142 new jobs and $52.4 million in new development. An updated program report is scheduled for release in Q3 of 2016.

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