Waste Management Services Statement of Operations - Quarter 2 Financial Update (2017) (in thousands of dollars)

		Year to Date				Annual
		Budget	Actual	Budget vs Actual Variance Favourable/(Unfavourable)		Budget	Forecast	Budget vs Forecast Variance Favourable/(Unfavourable)
Expenses
Compensation		$1,772	$1,678	$94	5.3%	$3,523	$3,431	$91	2.6%
Administrative		701	221	480	68.5%	1,429	1,156	273	19.1%
Operational & Supply		18,736	18,806	-70	(0.4%)	38,129	39,668	-1,539	(4.0%)
Occupancy & Infrastructure		644	617	27	4.2%	1,323	1,362	-39	(2.9%)
Equipment, Vehicles,Technology		602	486	116	19.3%	1,194	1,079	115	9.6%
Partnership, Rebate, Exemption		43	85	-43	(100.5%)	166	239	-73	(43.7%)
Financial Expenditures		0	-22	22	0.0%	0	-22	22	0.0%
Total Expenses		22,498	21,872	626	2.8%	45,764	46,913	-1,149	(2.5%)
Revenues
Taxation		-17,346	-17,652	306	(1.8%)	-34,891	-34,892	1	(0.0%)
By-Law Charges & Sales		-6,262	-9,638	3,376	(53.9%)	-12,955	-18,924	5,968	(46.1%)
Other Revenue		-2,112	-2,310	198	(9.4%)	-4,139	-4,555	416	(10.1%)
Total Revenues		-25,719	-29,600	3,880	(15.1%)	-51,985	-58,371	6,386	(12.3%)
Intercompany Charges
Intercompany Charges		59	89	-30	(50.3%)	118	148	-30	(25.3%)
Total Intercompany Charges		59	89	-30	(50.3%)	118	148	-30	(25.3%)
Net Expenditure (Revenue) Before Transfers & Indirect Allocations		-3,162	-7,639	4,476	(141.6%)	-6,103	-11,309	5,207	(85.3%)
Transfers
Transfers From Funds		-204	-164	-40	19.6%	-204	-164	-40	19.6%
Transfers To Funds		2,002	2,002	0	0.0%	4,005	4,005	0	0.0%
Total Transfers		1,798	1,838	-40	(2.2%)	3,801	3,841	-40	(1.1%)
Indirect Allocations & Debt
Indirect Allocation		710	669	41	5.8%	1,388	1,404	-15	(1.1%)
Capital Financing Allocation		838	837	1	0.1%	913	912	1	0.1%
Total Indirect Allocations & Debt		1,548	1,506	42	2.7%	2,302	2,316	-14	(0.6%)
Net Expenditure (Revenue) After Transfers & Indirect Allocations		184	-4,294	4,478	2431.2%	0	-5,153	5,153	0.0%

 

Variance Analysis (in thousands of dollars)

Waste Management is operating at a year-to-date surplus before indirect allocations of $4,436 and is forecasting an overall surplus of $5,167 at the end of the year. The following factors have contributed to year-to-date and forecasted surplus:

Compensation

The favourable year-to-date and forecasted variances of $94 and $91 is primarily due to delays in filling vacant positions.

Administrative

The favourable year-to-date variance of $480 is primarily due to deferral of consulting work of $263 and various administrative expenses until latter half of 2017. The forecasted annual variance of $273 is primarily due to reduced or deferred consulting expenditures of $148, utilization of existing communication pieces and lower promotional and educational volumes of $41 and reduced Humberstone ECA (Environmental Certificate Approval) submission costs of $31.

Operational & Supply

The unfavourable year-to-date and forecasted variances of $70 and $1,539 is primarily due to higher than anticipated commodity prices for the purchase of recyclable materials (i.e. forecasted annual variance for Waterloo contract of $1,322) and the extension of the Haldimand contract, originally budgeted for the first six months only. These unfavourable variances are completely offset by related increases to recycling revenues.

Equipment, Vehicles & Technology

The favourable year-to-date and forecasted variances of $116 and $115 are primarily due to no major equipment issues at the various sites during the first six months.

Partnership, Rebate, & Exemption

The unfavourable year-to-date and forecasted variances of $43 and $73 is primarily due to additional registered charitable organization tonnages received at Humberstone and Niagara Road 12, for which the tipping fees are waived.

Taxation Revenue

The favourable year-to-date variance of $306 is due to the municipal requisitions for Q1 and Q2 being allocated based on the last two quarters of 2016. The forecasted variance will be reduced to $0.

By-law Charges & Sales

The favourable year-to-date and forecasted variances of $3,376 and $5,968 is primarily due to higher than anticipated market revenues received from the sale of fibres (i.e. forecasted annual variance for Old Newsprint of $1,499; Old Corrugated Cardboard of $985; and Old Boxboard of $2,632), as well as increased tipping fee revenues from the additional landfill tonnages received at Bridge Street, Humberstone and Niagara Road 12 landfills of $302.

Other Revenue

The favourable year-to-date and forecasted variances of $198 and $416 are primarily due to increased RPRA (Resource Productivity and Recovery Authority) funding received for Niagara Region's Blue Box program of $385, Haldimand contract extension and additional CIF (Continuous Improvement Fund) funding.

Community Impacts & Achievements

Waste Management Services (WMS) is responsible for the operation of various facilities, including landfill sites, HHW depots and the Recycling Centre (a net revenue generator). 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 recycling processing contract, policy development, capital program delivery and supporting outreach and communications programs.

Project Updates & Accomplishments

• Recycling Centre Opportunity Review (identification of options considering the potential impact of the new extended producer responsibility legislation):
  • Phase One - complete - MRF market appraisal of buildings and land complete;
  • Phase Two - in progress - MRF processing lines and systems, rolling stock and equipment state of repair assessment and valuation;
  • Phase Three - RFP issued for MRF business valuation, strategic option evaluation and market analysis.
• Launch of the unlimited recycling and organics collection service to the industrial, commercial and institutional and mixed-use properties outside Designated Business Areas.
• Approval for a pilot textile collection program at Multi-Residential buildings.
• New initiatives: Multi-Residential Pilot Eco-Ambassador and 'Rethink Your Waste at Your Workplace' Programs.
• Official partnership with Crime Stoppers Niagara to combat illegal dumping.
• Bridge Street and Niagara Road 12 Drop-off Depot improvements in progress.
• Solid Waste By-law update with improvements to encourage waste diversion, clarify existing conditions to enhance public understanding of the By-law, and reduce illegal dumping.
• Winner of two Municipal Waste Association awards for excellence in municipal promotional and educational material: Silver Award in the "Digital Tool" category for the Online Large Item Collection Tool and a Bronze Award in the 'Print Tool' category for the 'Recycle Your Bicycle' promotional rack card.
• Finalized collection contract extension.