Waste Management Services Statement of Operations - Quarter 4 Financial Update (2016)

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 (in thousands of dollars)
		Budget	Actual	Budget vs Actual Variance Favourable/(Unfavourable)
Expenses
Compensation		$3,518	$3,389	$128	3.8%
Administrative		1,807	700	1,107	158.2%
Operational & Supply		37,930	36,461	1,470	4.0%
Occupancy & Infrastructure		1,243	1,217	25	2.1%
Equipment, Vehicles, Technology		1,236	939	297	31.6%
Partnership, Rebate, Exemption		151	217	(66)	33.0%
Financial Expenditures		-	(19)	19	(100.0%)
Total Expenses		45,885	42,903	2,981	6.9%
Revenues
Taxation		(35,301)	(35,320)	19	(0.1%)
By-Law Charges & Sales		(12,606)	(13,723)	1,116	(8.1%)
Other Revenue		(4,170)	(4,763)	593	(12.5%)
Total Revenues		(52,077)	(53,806)	1,728	(3.2%)
Intercompany Charges
Intercompany Charges		111	107	4	3.5%
Total Intercompany Charges		111	107	4	3.5%
Net Expenditure (Revenue) Before Transfers & Indirect Allocations		(6,082)	(10,795)	4,713	(43.7%)
Transfers
Transfers from Funds		(244)	(244)	-	0.0%
Transfers to Funds		3,198	3,402	(204)	(6.0%)
Total Transfers		2,954	3,158	(204)	(6.5%)
Indirect Allocations & Debt
Indirect Allocations		1,360	1,547	(187)	(12.1%)
Capital Financing Allocation		1,768	1,753	15	0.9%
Total Indirect Allocations & Debt		3,128	3,300	(172)	(5.2%)
Net Expenditure (Revenue) After Transfers & Indirect Allocation		$-	$(4,337)	$4,337	(100.0%)

Variance Analysis (in thousands of dollars)

Waste Management operated at a surplus after indirect allocations of $4,337. The following factors contributed to this surplus:

Compensation

The favourable variance of $128 is primarily due to delays in filling vacant positions.

Administrative

The favourable variance of $1,107 is primarily due to the timing of $765 of public engagement work and consulting related to the Long-Term Strategic Plan Study, the Service Level Review and the Optimization Study. Advertising, postage and printing costs were also $288 lower than budgeted as the Region was able to utilize a large amount of in-kind (funded) advertising for promotion of its diversion programs. $103 of the unspent consulting budget related to the Optimization Study was committed and is included in the 2016 encumbrances reported in Transfers to Funds.

Operational & Supply

The favourable variance of $1,470 is primarily due to: $338 cost savings from lower than anticipated organic tonnages being processed at Walker Industries' compost facility; $420 lower than budgeted waste/recycling/organics collection contract escalation increases; $446 in reduced environmental monitoring services and leachate volumes being treated due to below-average rainfall; savings of $251 related to closure of the Bridge Street landfill operation site in July 2016; $111 from the deferral of mattress collection program; $50 from the deferral of Humberstone gas collection system maintenance costs until post 2016; and $121 lower than budgeted operational costs of the Household Hazardous Waste (HHW) permanent depots based on new tender results. This favourable variance is partially offset by higher than budgeted market prices of $347 for recyclables from the Waterloo and Haldimand contracts to the recycling centre. $101 of the unspent budget has been committed to the purchase of green bins and recycling carts and has been included in the 2016 encumbrances reported in Transfers to Funds.

Equipment, Vehicles & Technology

The favourable variance of $297 is primarily due to a decrease in fuel prices and a decrease in spending on repairs for leachate pumping stations, pumping wells and processing line equipment.

Partnership, Rebate & Exemption

The unfavourable variance of $66 is due to higher than budgeted tipping fee exemptions provided to registered charities.

By-law Charges & Sales

The favourable variance of $1,116 is due to: $389 higher than budgeted tipping fee revenue resulting from higher volumes at Bridge Street, Humberstone and Niagara Road 12 landfills; $171 higher than budgeted garbage tag, CFC tag and environmental services fees; and $550 higher than budgeted recycling sales.

Other Revenue

The favourable variance of $593 is primarily due to increased Waste Diversion Ontario funding received for the Blue Box program.

Transfers to Funds

The unfavourable variance of $204 relates to the 2016 encumbrances.

Community Impacts & Achievements

Project Updates & Accomplishments

• Environmental Assessment for the Humberstone Landfill Expansion approved by the Ministry
• Social Marketing and Education Plan implementation including continuation of the Green Bin Campaign to increase diversion and preserve available landfill capacity
• 2016-2021 Blue Box Program Plan to fulfill the best practice requirement related to the Resource Productivity and Recovery Authority
• Received a Silver Promotion and Education Award from the Municipal Waste Association in recognition of the 'Green Bin Campaign'
• 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 diversion 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
• Curbside Waste Composition Study completed