Water and Wastewater Services Statement of Operations - Quarter 4 Financial Update (2016)
|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%)|
Variance Analysis (in thousands of dollars)
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.
Operational & Supply
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.
Occupancy & Infrastructure
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.
Equipment, Vehicles, Technology
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.
Partnership, Rebate, Exemption
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.
Transfers from Funds
The unfavourable variance of $1,968 relates to unutilized CSO funding that was transferred back to reserves and the timing of CSO program expenditures.
Transfers to Funds
The unfavourable variance of $7,989 relates to the 2016 encumbrances.
Community Impacts & Achievements
- The Water and Wastewater Operations Divisions treated 58.8 billion litres of water in 2016 through six water treatment plants and 316 km of water mains, as well as 63.4 billion litres of wastewater through eleven plants and one bio solids storage facility, with collection through 123 pump stations and 283 km of forcemains and gravity sewers.
- The divisions provide input into water and wastewater approvals and master plans, design and construction, laboratory services, utility locates, source water protection, biosolids management, and environmental monitoring and enforcement.
- A division wide re-organization which consisted of decentralizing core maintenance and the creation of a new Integrated Systems division was undertaken to streamline processes, improve efficiencies and increase customer service.
- Significant programs in 2016 include the ongoing "How We Flow" Master Servicing Plan, Security Master Plan, Maintenance Mobile Solution, wet weather flow monitoring project with the Town of Fort Erie, continued refinements to the Port Colborne water loss program, enhanced community involvement and outreach such as the Children's Water Festival, water wagon deployment and Public Works Week which included facility tours and events for the public.
- Construction is nearing completion at the Niagara-on-the-Lake wastewater treatment. Phase 1 of the Welland water treatment plant is now complete and construction of the new Port Colborne water tower is now underway.