General Government - Quarter 4 Financial Update (2016)
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 (in thousands of dollars) | |||||
|---|---|---|---|---|---|
| Budget | Actual | Budget vs Actual Variance Favourable/(Unfavourable) |
|||
| Expenses | |||||
| Administrative | 5,953 | 7,556 | (1,603) | (21.2%) | |
| Occupancy & Infrastructure | 55 | 49 | 5 | 10.8% | |
| Partnership, Rebate, Exemption | 7,319 | 5000 | 2,318 | 46.4% | |
| Financial Expenditures | 43,675 | 45,462 | (1,787) | 3.9% | |
| Total Expenses | 57,001 | 56,068 | (1,067) | (1.8%) | |
| Revenues | |||||
| Taxation | (338,300) | (339,414) | 1,114 | (0.3%) | |
| By-Law Charges & Sales | (80) | (33) | (47) | 139.1% | |
| Other Revenue | (11,905) | (14,550) | 2,645 | (18.2%) | |
| Total Revenues | (350,285) | (353,997) | 3,712 | (1.0%) | |
| Intercompany Charges | |||||
| Intercompany Charges | (68) | (88) | 20 | (22.5%) | |
| Total Intercompany Charges | (68) | (88) | 20 | (22.5%) | |
| Net Expenditure (Revenue) Before Transfers & Indirect Allocations | (293,351) | (296,017) | 2,666 | (0.9%) | |
| Transfers | |||||
| Transfers From Funds | (9,472) | (9,495) | 23 | (0.2%) | |
| Transfers To Funds | 27,862 | 30,390 | (2,529) | (8.3%) | |
| Total Transfers | 18,390 | 20,895 | (2,505) | (12.0%) | |
| Indirect Allocations & Debt | |||||
| Capital Financing Allocation | (59,675) | (59,707) | 32 | (0.1%) | |
| Total Indirect Allocations & Debt | (59,675) | (59,707) | 32 | (0.1%) | |
| Net Expenditure (Revenue) After Transfers & Indirect Allocations | $(334,636) | $(334,828) | $192 | (0.1%) | |
Variance Analysis (in thousands of dollars)
General Government operated at a surplus after indirect allocations of $192. The following factors contributed to this surplus:
Administrative
The unfavourable variance of $1,603 primarily relates to the unbudgeted change in the estimate of legal claims pending at the end of 2016.
Partnership, Rebate, Exemption
The favourable variance of $2,318 is primarily due to the timing of grant payments related to the General Electric (GE) road and intersection improvements ($1,500) and the Public Realm Investment Program (PRIP) ($250), as well as Tax Increment grants being lower than budget ($569). The GE development and PRIP grants have been included in the 2016 encumbrances reported in Transfers to Funds.
Financial Expenditures
The unfavourable variance of $1,787 is primarily due to tax write-offs being higher than budgeted.
Taxation
The favourable variance of $1,114 is primarily due to supplemental taxes being higher than budgeted.
Other Revenue
The favourable variance of $2,645 is primarily due to an unanticipated sale of surplus property ($945) and investment income being higher than budget ($1,598). The investment income variance has been taken into consideration when developing the 2017 budget as past trends have indicated sustainable investment earnings
Transfer to Funds
The unfavourable variance of $2,529 relates to the 2016 encumbrances ($1,750), the proceeds from the sale of surplus properties which were transferred to the Capital Levy reserve ($1,019); offset by reduced transfers to reserve from unfunded debt ($241).
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.
© Niagara Region - 1815 Sir Isaac Brock Way, Thorold, ON, L2V 4T7 - Phone: 905-980-6000, Toll-free: 1-800-263-7215
