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Q3 Financial Update (2016) Waste Management Services - Statement of Operations
(in thousands of dollars)

Waste Management Services (WMS) 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.

  Year to Date Annual
Budget Actual Variance Budget Forecast Variance
Expenses
Compensation   $ 2,665 $ 2,566 $ 99 3.7% $ 3,518 $ 3,451 $ 67 1.9%
Administrative   1,423 500 923 64.9% 1,807 990 817 45.2%
Operational & Supply   28,457 24,858 3,599 12.6% 37,930 36,332 1,598 4.2%
Occupancy & Infrastructure   934 948 (13) (1.4%) 1,243 1,227 16 1.3%
Equipment, Vehicles,Technology   927 605 322 34.7% 1,236 995 241 19.5%
Partnership, Rebate, Exemption   113 119 (5) (4.7%) 151 160 (9) (6.0%)
Total Expenses 34,520 29,595 4,925 14.3% 45,885 43,155 2,730 5.9%
Revenues
Taxation   (26,476) (26,545) 69 (0.3%) (35,301) (35,301) - 0.0%
By-Law Charges & Sales   (9,455) (9,941) 486 (5.1%) (12,606) (13,083) 476 (3.8%)
Other Revenue   (3,127) (3,541) 414 (13.2%) (4,170) (4,726) 556 (13.3%)
Total Revenues (39,058) (40,027) 969 (2.5%) (52,077) (53,110) 1,032 (2.0%)
Intercompany Charges
Intercompany Charges   83 73 10 12.2% 111 101 10 9.1%
Total Intercompany Charges   83 73 10 12.2% 111 101 10 9.1%
Net Expenditure (Revenue) Before Transfers & Indirect Allocations (4,455) (10,359) 5,904 (132.5%) (6,082) (9,854) 3,772 (62%)
Transfers
Transfers From Funds   (244) (244) - 0.0% (244) (244) - 0.0%
Transfers To Funds   2,398 2,398 - 0.0% 3,198 3,198 - 0.0%
Total Transfers 2,154 2,154 - 0.0% 2,954 2,954 - 0.0%
Indirect Allocations & Debt
Indirect Allocation   1,023 1,012 11 1.1% 1,360 1,401 (42) (3.1%)
Capital Financing Allocation   1,715 1,707 8 0.5% 1,768 1,759 9 0.5%
Total Indirect Allocations & Debt 2,738 2,719 19 0.7% 3,128 3,160 (32) (1.0%)
Net Expenditure (Revenue) After Transfers & Indirect Allocations $ 438 $ (5,485) $ 5,923 1353.4% $ - $ (3,740) $ 3,740 0.0%

Variance Analysis (in thousands of dollars)

Waste Management is operating at a year-to-date surplus after indirect allocations of $5,923 and is forecasting an overall surplus of $3,730 at the end of the year. The following factors have contributed to these variances:

Compensation

The favourable year-to-date and forecasted variances of $99 and $57 are primarily due to natural delays in filling vacant positions.

Administrative

The favourable year-to-date and forecasted variances of $923 and $817 are primarily due to the deferral of the Long-Term Strategic Plan Study (deferred until post 2016) and the Service Level Review and Optimization Study (deferred until post 2016 due to Bill 151).

Operational & Supply

The change in the year-to-date variance of $3,599 compared to the forecasted variance of $1,598 is primarily due to the timing of expenses related to collection contract expected to be realized by year-end ($1,607). The remainder of the forecasted variance of $1,598 is primarily due to: lower-than-anticipated organic tonnages being processed at Walker Industries' compost facility ($436); waste/recycling/organics collection contract escalation increases being lower than budgeted ($458); reduced environmental monitoring services ($78) and leachate volumes being treated ($217) due to below-average rainfall; closure of the Bridge Street landfill operation site in July ($255); deferral of Humberstone gas collection system maintenance costs until post 2016 ($50); operational costs of the Household Hazardous Waste (HHW) permanent depots being less than budgeted based on new tender results ($121); offset by higher market prices compared to budget for recyclables from the Waterloo contract to the recycling centre ($190).

Equipment, Vehicles & Technology

The favourable year-to-date and forecasted variances of $322 and $241 are primarily due to decreased gas prices and a decrease in spending on repairs for leachate pumping stations, pumping wells and processing line equipment.

By-law Charges & Sales

The favourable year-to-date and forecasted variances of $486 and $476 are primarily due to: higher tipping fees received at Humberstone and Niagara Road 12 landfills ($331); higher garbage tag and CFC tag fees ($67); and higher than budgeted recycling sales ($70).

Other Revenue

The favourable year-to-date and forecasted variances of $414 and $556 are primarily due to increased Waste Diversion Ontario funding received for the Blue Box program.

Community Impacts & Achievements

Project Updates & Accomplishments

  • Commissioned new processing equipment (polydensifier and fibre optical) resulting in higher revenue from the sale of recyclables
  • 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
  • Increased capture of HHW by 20 per cent through new permanent HHW depots
  • Landfill 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
  • Approval of various diversion programs for the Multi-Residential Sector
  • Curbside Waste Composition Study completed
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