|Year to Date||Annual|
|Budget||Actual||Budge vs Actual Variance
Favourable / (Unfavourable)
|Budget||Forecast||Budge vs Forecast Variance
Favourable / (Unfavourable)
|Operational & Supply||5,804||5,538||266||4.6%||11,592||12,450||-858||(7.4%)|
|Occupancy & Infrastructure||8,122||7,971||151||1.9%||16,243||17,139||-896||(5.5%)|
|Equipment, Vehicles, Technology||2,378||3,011||-633||(26.6%)||4,755||5,867||-1,112||(23.4%)|
|Partnership, Rebate, Exemption||9,817||1,344||8,473||86.3%||11,892||11,922||-30||(0.3%)|
|By-Law Charges & Sales||-516||-572||56||(10.9%)||-1,032||-1,087||55||(5.3%)|
|Total Intercompany Charges||1,015||879||136||13.4%||1,999||1,863||136||6.8%|
|Net Expenditure (Revenue) Before Transfers & Indirect Allocations||-16,257||-25,105||8,848||(54.4%)||-40,695||-37,440||-3,254||8.0%|
|Transfers From Funds||-9,560||-1,031||-8,529||89.2%||-11,132||-10,849||-282||2.5%|
|Transfers To Funds||20,286||20,298||-12||(0.1%)||40,423||40,423||0||0.0%|
|Indirect Allocations & Debt|
|Capital Financing Allocation||5,366||5,365||1||0.0%||7,439||7,438||1||0.0%|
|Total Indirect Allocations & Debt||7,383||7,214||168||2.3%||11,403||11,442||-39||(0.3%)|
|Net Expenditure (Revenue) After Transfers & Indirect Allocations||1,851||1,376||475||25.6%||0||3,576||-3,576||0.0%|
Water & Wastewater services is operating at a year-to-date surplus before indirect allocations of $306 with a forecasted deficit of $3,537 before indirect allocations for year end. The following factors have contributed to this surplus and projected deficit:
The favourable year-to-date variance of $379 and projected year-end favourable variance of $477 is due mainly to vacancies throughout all divisions. Recruitment challenges are expected to continue in the second half of the year, although positions are slowly being filled.
The favourable year-to-date variance of $536 is due to lower than expected spending in consulting due to lack of staff capacity to manage consulting engagements. As at June 30 there was $187 in unspent consulting and $282 in unspent energy efficiency work. The projected year-end favourable variance is expected to decrease to $340 as the energy efficiency funds will be partially used to address the boiler replacements at Welland WWTP and finalization of the Port Dalhousie WWTP energy audit.
The favourable year-to-date variance of $266 is due to the timing of the biosolids land application resulting in a favourable YTD variance of $579, net of an unfavourable YTD variance in chemicals of $299. The favourable variance id projected to become a negative variance of $858 comprised of an unfavourable biosolids amount of $281 reflecting the increased land application in the summer and increased sludge haulage from the Niagara Falls WWTP due to digester failures, as well as an unfavourable variance of $474 in chemicals due to increased usage and price escalations.
The favourable year-to-date variance of $151 is due to the timing of property taxes resulting in a favourable YTD variance of $300, unspent R&M funds for water and sewer mains of $251, and unspent R&M grounds funds of $140. This however is offset by an unfavourable YTD variance in R&M water storage of $538 due to unplanned repairs to the Decew WTP reservoir and higher than budgeted utility costs of $50. The projected year-end unfavourable variance is expected to increase to $896 comprised of a favourable R&M grounds amount of $219, an unfavourable variance of $769 in R&M water storage as the Decew reservoir repairs are completed, and an unfavourable utility variance of $335.
The unfavourable year-to-date variance of $633 is due to an unfavourable variance in R&M equipment of $590 due to an increase in repair and replacement of aging equipment, specifically mechanical control cabinet and instrumentation by the Integrated Systems group, as well as repairs needed to digester 1 at the Niagara Falls WWTP. The projected year-end unfavourable variance is expected to increase to $1,112 due to additional work still to be completed on digester 1 at Niagara Falls WWTP, as well as repairs now required to digester 2 due to an unexpected roof failure.
The favourable year-to-date variance of $8,473 is due to CSO funds committed to local area municipalities but not yet paid of $8,493, less unbudgeted donations of $20. The forecast for year-end is an unfavourable variance of $30 from unbudgeted donations since all CSO funding not spent will be encumbered into future year budgets.
The unfavourable year-to-date variance of $646 is due to lower than budgeted water sales due to cooler and wetter weather than normal in the first half of the year. The projected year end variance is expected to increase to $1,300 as the trend is expected to continue for the remainder of the year.
The unfavourable year-to-date variance of $8,541, mainly due to CSO funds previously encumbered from prior years of $8,247, and funds transferred from operating to fund capital items of $282. The year-end unfavourable variance is expected to decrease to $282 as any unspent CSO funds in 2017 will be re-encumbered into future year budgets.
Construction is nearing completion at the Niagara-on-the-Lake wastewater treatment and Port Colborne elevated tank. Phase 1 of the Welland water treatment plant is now complete. Tenders for the Rosehill and Port Colborne WTP upgrades are expected to be completed by year-end.