Q3 Financial Update Niagara Regional Housing - Statement of Operations
(in thousands of dollars)

Niagara Regional Police Service Table of Contents Court Services

	Year to Date				Annual
	Budget	Actual	Variance		Budget	Forecast	Variance
Expenses
Compensation	$3,437	$3,396	$41	1.2%	$4,560	$4,609	$(49)	(1.1%)
Administrative	421	373	47	11.2%	553	624	(70)	(12.7%)
Operational & Supply	59	33	27	44.9%	79	59	20	24.8%
Occupancy & Infrastructure	10,736	10,439	297	2.8%	14,309	14,487	(178)	(1.2%)
Equipment, Vehicles, Technology	613	390	223	36.4%	818	751	67	8.2%
Community Assistance	24,495	23,561	934	3.8%	32,659	32,299	360	1.1%
Financial Expenditures	1,991	2,027	(36)	(1.8%)	2,655	2,697	(42)	(1.6%)
Total Expenses	41,752	40,219	1,533	3.7%	55,634	55,526	108	0.2%
Revenues
Federal & Provincial Grants	(11,308)	(10,867)	(441)	3.9%	(15,082)	(14,965)	(118)	0.8%
Other Revenue	(10,105)	(10,373)	268	(2.7%)	(13,474)	(13,788)	314	(2.3%)
Total Revenues	(21,414)	(21,241)	(173)	0.8%	(28,556)	(28,753)	196	(0.7%)
Intercompany Charges
Intercompany Charges	47	45	1	2.9%	62	61	1	2.2%
Total Intercompany Charges	47	45	1	2.9%	62	61	1	2.2%
Net Expenditure (Revenue) Before Transfers & Indirect Allocations	20,385	19,023	1,361	6.7%	27,140	26,834	306	1.1%
Transfers
Transfers from Funds	(936)	(936)	-	(0.0%)	(1,236)	(1,236)	-	(0.0%)
Transfers to Funds	606	736	(130)	(17.7%)	809	939	(130)	(16.1%)
Total Transfers	(329)	(199)	(130)	39.5%	(427)	(297)	(130)	30.4%
Indirect Allocations & Debt
Indirect Allocations	1,181	1,155	25	2.2%	1,578	1,560	18	1.1%
Capital Financing Allocation	2,302	2,430	(128)	(5.3%)	3,460	3,483	(23)	(0.7%)
Total Indirect Allocations & Debt	3,483	3,586	(103)	(3.0%)	5,038	5,043	(6)	(0.1%)
Net Expenditure (Revenue) After Transfers & Indirect Allocation	$23,539	$22,410	$1,128	4.8%	$31,750	$31,580	$170	0.5%

Variance Analysis (in thousands of dollars)

Administrative

The favourable year-to-date variance of $47 is primarily due to the timing of Niagara Regional Housing (NRH) consulting costs offset by higher communication costs for NRH owned-units and paralegal costs. The communication and paralegal costs are anticipated to be higher than budget by year-end, in addition to unplanned risk management costs, resulting in an unfavourable forecasted variance of $70.

Operational & Supply

The favourable year-to-date and forecasted variances of $ 27 and $20 are driven by lower community resources program spend and reduced maintenance materials on hand.

Occupancy & Infrastructure

The favourable year-to-date variance of $297 is primarily due to the timing of utility costs and property tax payments. The unfavourable forecasted variance of $178 is due to anticipated higher than budgeted move-out costs driven by increased turnover for NRH owned-units; partially offset by less than budgeted utility costs driven by savings from ongoing capital investment to drive efficiencies in NRH owned-units.

Equipment, Vehicle, Technology

The favourable year-to-date and forecasted variances of $223 and $67 are driven by lower than budgeted minor equipment repairs and maintenance, in addition to timing delays related to the selection of asset management software.

Community Assisstance

The favourable year-to-date and forecasted variances of $934 and $360 are primarily due to lower than budgeted not-for-profit and co-op subsidy costs driven by mortgage renewals with lower applicable rates, as well as the timing of the Investment in Affordable Housing (IAH) New Development project completion and release of associated holdbacks.

Federal & Provincial Grants

The unfavourable year-to-date and forecasted variances of $441 and $118 are driven by timing of the IAH New Development project completion

Other Revenue

The favourable year-to-date and forecasted variances of $268 and $314 are primarily due to higher than budgeted investment income relating to timing of NRH cash flows, the timing of maintenance charge revenues, and the proceeds from the sale of a NRH owned-unit in Q1 2016.

Community Impacts & Achievements

Niagara Regional Housing is responsible for administration and oversight of 66 social housing providers who operate 3,940 social housing units across Niagara. NRH is also responsible for subsidies to 66 providers and landlords; direct ownership and management of a residential rental portfolio; the management of the affordable housing waiting list; and the delivery of federal/provincial programs.

Public Housing Operations

NRH provides property and asset management services for a portfolio of 2,758 units including 36 apartment buildings and over 900 townhouses/houses. These units are home to over 6,500 people. This portfolio represents 41% of the operating budget for building-related expenses (maintenance, taxes, utilities, etc.)

Social Housing Programs

Through rental subsidy programs with private landlords and non-profit/co-operative housing providers, an additional 5,000 units of affordable housing are available. The subsidies which account for 55% of the operating budget are calculated based on legislative requirements.

Affordable Housing Programs

NRH maintains the affordable housing waiting list for the Region. The demand for housing increased 0.5 per cent over the same quarter last year. At the end of the third quarter, 4,446 households were waiting for permanent subsidized accommodation while 168 received housing.

Federal & Provincial Funding

NRH receives time-limited funding under the "Investment in Affordable Housing (IAH)" and the "Investment in Affordable Housing Extension Program (IAH-E)" programs from the federal and provincial governments that provides affordable housing solutions for homeowners (renovation, down payment assistance), as well as assistance to applicants on the waitlist (housing allowances). The IAH-E funding is also being used to develop 85 new affordable housing units with land purchased in St. Catharines in 2016.