|Year to Date (in thousands of dollars)|
|Budget||Actual||Budget vs Actual Variance
|Operational & Supply||10,441||10,879||(437)||(4.0%)|
|Occupancy & Infrastructure||15,799||15,532||266||1.7%|
|Equipment, Vehicles, Technology||5,016||5,007||9||0.2%|
|Partnership, Rebate, Exemption||11,235||433||10,802||2496.0%|
|By-Law Charges & Sales||(1,066)||(1,090)||24||(2.2%)|
|Total Intercompany Charges||1,890||1,809||81||4.5%|
|Net Expenditure (Revenue) Before Transfers & Indirect Allocations||(40,933)||(52,995)||12,062||(22.8%)|
|Transfers from Funds||(10,811)||(8,843)||(1,968)||22.3%|
|Transfers to Funds||40,251||48,240||(7,989)||(16.6%)|
|Indirect Allocations & Debt|
|Capital Financing Allocation||7,617||7,620||(3)||(0.0%)|
|Total Indirect Allocations & Debt||11,493||11,650||(157)||(1.3%)|
|Net Expenditure (Revenue) After Transfers & Indirect Allocation||$-||$(1,949)||$1,949||(100.0%)|
Water & Wastewater services operated at a surplus after indirect allocations of $1,949. The following factors have contributed to this surplus:
The favourable variance of $708 is a result of vacancies in water maintenance staff and administrative roles.
The favourable variance of $1,185 is driven mainly by $1,149 lower than expected spending in consulting due to lack of staff capacity to manage consulting engagements. Consulting expenditures for the ongoing Water & Wastewater Master Servicing Plan and Project Management Review in the amounts of $206 and $41 respectively, have been committed and are included in the 2016 encumbrances reported in Transfers to Funds.
The unfavourable variance of $437 is primarily due to: higher than budgeted biosolids costs for increased haulage and lagoon remediation of $223, higher than budgeted program specific training costs of $177 and higher than budgeted lab sampling costs due to increased sampling and testing required for items such as the blue green algae in the Decew reservoir of $175; partially offset by a gain of $121 due to the reconciliation of inventory on hand.
The favourable variance of $266 is due to lower than budgeted spending for repairs and maintenance to watermains, sewers, and water storage of $567, lower than budgeted spending for repairs and maintenance to buildings of $232, lower than budgeted spending for utilities excluding electricity of $403 and a gain of $248 due to the reconciliation of inventory on hand. These favourable variances were partially offset by unfavourable variances in electricity of $900, waste disposal of $192 and repairs and maintenance for grounds of $87.
The favourable variance of $9 is due to a gain of $1,076 due to the reconciliation of inventory on hand, offset by higher than expected spending in repairs and maintenance for machinery and equipment of $817 and computer software license and support of $219.
The favourable variance of $10,802 relates primarily to the timing of expenses for the combined sewer overflow (CSO) program. Total funds of $5,987 from 2015 and $4,336 from 2016 have been subscribed but unclaimed, $7,742 of which have been included in the 2016 encumbrances reported in Transfers to Funds and $2,581 is offset by the variances in Other Revenue and Transfers From Funds. There were also four CSO projects closed during the year resulting in $487 of funding not being utilized and therefore returned to reserves.
The favourable variance of $630 is due to hotter and drier than normal weather in 2016 leading to increased water usage and sales.
The unfavourable variance of $1,210 is primarily due to budgeted but unrecognized development charge revenue of $1,099 due to the timing of actual CSO payments to local area municipalities, as well as revenues for rentals from telecomms being $98 lower than budgeted.
The unfavourable variance of $1,968 relates to unutilized CSO funding that was transferred back to reserves and the timing of CSO program expenditures.
The unfavourable variance of $7,989 relates to the 2016 encumbrances.