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
|Occupancy & Infrastructure||55||49||5||10.8%|
|Partnership, Rebate, Exemption||7,319||5000||2,318||46.4%|
|By-Law Charges & Sales||(80)||(33)||(47)||139.1%|
|Total Intercompany Charges||(68)||(88)||20||(22.5%)|
|Net Expenditure (Revenue) Before Transfers & Indirect Allocations||(293,351)||(296,017)||2,666||(0.9%)|
|Transfers From Funds||(9,472)||(9,495)||23||(0.2%)|
|Transfers To Funds||27,862||30,390||(2,529)||(8.3%)|
|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:
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.
The unfavourable variance of $1,787 is primarily due to tax write-offs being higher than budgeted.
The favourable variance of $1,114 is primarily due to supplemental taxes being higher than budgeted.
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.