Q3 Financial Update (2016) General Government - Statement of Operations
(in thousands of dollars)

Corporate Administration Table of Contents Governance

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.

	Year to Date				Annual
	Budget	Actual	Variance		Budget	Forecast	Variance
Expenses
Administrative	$4,454	$4,367	$86	1.9%	$5,953	$4,963	$991	16.6%
Occupancy & Infrastructure	41	43	(2)	(6.1%)	55	60	(6)	(10.2%)
Partnership, Rebate, Exemption	4,955	816	4,139	83.5%	7,319	7,842	(523)	(7.2%)
Financial Expenditures	36,805	36,058	747	2.0%	43,675	43,564	111	0.3%
Total Expenses	46,255	41,285	4,970	10.7%	57,001	56,429	573	1.0%
Revenues
Taxation	(325,899)	(325,849)	(50)	0.0%	(338,300)	(338,898)	598	(0.2%)
By-Law Charges & Sales	(60)	(27)	(33)	55.7%	(80)	(47)	(33)	41.7%
Other Revenue	(8,446)	(10,464)	2,018	(23.9%)	(11,905)	(13,278)	1,373	(11.5%)
Total Revenues	(334,405)	(336,339)	1,934	(0.6%)	(350,285)	(352,222)	1,938	(0.6%)
Intercompany Charges
Intercompany Charges	(51)	(49)	(2)	4.2%	(68)	(76)	8	(11.5%)
Total Intercompany Charges	(51)	(49)	(2)	4.2%	(68)	(76)	8	(11.5%)
Net Expenditure (Revenue) Before Transfers & Indirect Allocations	(288,201)	(295,103)	6,902	(2.4%)	(293,351)	(295,870)	2,518	(0.9%)
Transfers
Transfers from Funds	(6,236)	(6,236)	0	(0.0%)	(9,472)	(9,495)	23	(0.2%)
Transfers to Funds	16,322	16,253	69	0.4%	27,862	27,552	310	1.1%
Total Transfers	10,086	10,017	69	0.7%	18,390	18,057	333	1.8%
Indirect Allocations & Debt
Capital Financing Allocation	(45,668)	(45,852)	183	(0.4%)	(59,675)	(59,684)	9	(0.0%)
Total Indirect Allocations & Debt	(45,668)	(45,852)	183	(0.4%)	(59,675)	(59,684)	9	(0.0%)
Net Expenditure (Revenue) After Transfers & Indirect Allocation	$(323,784)	$(330,937)	$7,154	(2.2%)	$(334,636)	$(337,497)	$2,861	(0.9%)

Variance Analysis (in thousands of dollars)

Administrative

The favourable forecasted variance of $991 relates to the Green Shield employee group health and dental plans 2016 net surplus which is based on actual claims experienced during the year. This surplus will be allocated amongst the appropriate levy supported departments at year-end.

Partnership, Rebate, Exemption

The favourable year-to-date variance of $4,139 is primarily due to the timing of the issuance of Smarter Niagara Incentive Grants ($633), Development Charge Grants ($330), Tax Increment Funding ($606) and a grant in support of the GE "brilliant" manufacturing facility ($2,500). All grants are expected to be issued by the end of the year. Vacancy rebates are anticipated to be being higher than budgeted during the remainder of the year resulting in a forecasted unfavourable variance of $523.

Financial Expenditures

The favourable year-to-date variance of $747 is primarily due to the timing of property tax write-offs invoiced from local area municipalities (LAMs) ($1,265), offset by the timing of interest accruals on debt to be cleared at year-end ($561).

Taxation

The favourable forecasted variance of $598 is primarily due to supplemental taxes being higher than budgeted.

Other Revenue

The favourable year-to-date and forecasted variances of $2,018 and $1,373 are primarily due to investment income being higher than budget. This variance has been taken into consideration when developing the 2017 budget as past trends have indicated sustainable investment earnings.

Community Impacts & Achievements

On July 6, 2016 Niagara Region's annual capital market debenture issue settled for a total of $52,852 ($27,876 for Niagara Region and $24,976 split among six local area municipalities. All debentures were purchased despite close to historical low yields. The 10-year all-in cost of the debenture financing was 2.07 per cent, 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.