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General Government 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 $41 $0 $40 99.3% $81 -$724 $805 993.5%
Administrative 2,989 2,434 554 18.6% 6,027 7,886 -1,859 (30.8%)
Operational & Supply 283 0 283 100.0% 565 0 565 100.0%
Occupancy & Infrastructure 527 28 499 94.6% 554 565 -10 (1.8%)
Equipment, Vehicles,Technology 0 1 -1 0.0% 0 1 -1 0.0%
Partnership, Rebate, Exemption 2,708 1,617 1,090 40.3% 5,906 6,225 -319 (5.4%)
Financial Expenditures 15,544 12,391 3,153 20.3% 54,482 51,677 2,806 5.1%
Total Expenses 22,091 16,472 5,619 25.4% 67,616 65,629 1,987 2.9%
Revenues
Taxation -162,606 -162,974 368 (0.2%) -348,537 -348,461 -76 0.0%
By-Law Charges & Sales -40 -6 -34 84.0% -80 -46 -34 42.0%
Other Revenue -6,894 -9,899 3,004 (43.6%) -14,386 -20,623 6,237 (43.4%)
Total Revenues -169,540 -172,879 3,338 (2.0%) -363,003 -369,130 6,128 (1.7%)
Intercompany Charges
Intercompany Charges -54 -47 -7 13.2% -108 -108 0 (0.0%)
Total Intercompany Charges -54 -47 -7 13.2% -108 -108 0 (0.0%)
Net Expenditure (Revenue) Before Transfers & Indirect Allocations -147,503 -156,454 8,950 (6.1%) -295,495 -303,609 8,114 (2.7%)
Transfers
Transfers from Funds -4,421 -4,421 0 (0.0%) -8,514 -8,514 0 (0.0%)
Transfers to Funds 16,860 21,814 -4,954 (29.4%) 18,446 25,471 -7,025 (38.1%)
Total Transfers 12,439 17,393 -4,954 (39.8%) 9,932 16,957 -7,025 (70.7%)
Indirect Allocations & Debt
Capital Financing Allocation -26,928 -26,927 -1 0.0% -60,521 -60,521 -1 0.0%
Total Indirect Allocations & Debt -26,928 -26,927 -1 0.0% -60,521 -60,521 -1 0.0%
Net Expenditure (Revenue) After Transfers & Indirect Allocation -161,992 -165,988 3,996 (2.5%) -346,084 -347,172 1,088 (0.3%)

Variance Analysis (in thousands of dollars)

General Government is operating at a year-to-date surplus before indirect allocations of $3,996 and is forecasting an overall surplus before indirect allocations of $1,089 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 $40 and $81 is the result of corporate management of vacancies.

Administration

The favourable year-to-date and forecasted variances of $554 and $523 are primarily driven by the reversal of 2016 insurance accrual of $605, which offsets the pressures in Enterprise Resource Management Services related to the same claim.

Operational & Supply

The favourable forecasted variance of $565 represents the available balance of the "Budget Flexibility for Strategic Initiatives" approved for Council direction on Strategic Priorities.

Partnership, Rebate, Exemption

The favourable year-to-date variance is primarily due to timing of payments on "Smarter Niagara Incentive Program" grants, forecasted to be overdrawn at year-end by $319 which will be the subject of a report that may request funding for shortfall from the Smart Growth Reserve in the absence of corporate surplus to mitigate.

Financial Expenditures

The favourable year-to-date and forecasted variances of $3,153 and $2,806 are due to gain on the sale of an investment of $941, reversal of an allowance for doubtful accounts for receivables that have been deemed collectible as of 2017 for $555K year-to-date and 1,026K forecasted, sinking fund contribution of $1,513 reclassified to Transfers below offset by estimated increase in tax write offs of $675K.

Other Revenue

The favourable year-to-date and forecasted variances of $3,004K and $6,237K is related primarily to the sale of properties for $3,632K, with net proceeds transferred to the Capital Levy reserve. The forecasted surplus is to anticipate sale of Hainer Street properties, net proceeds to be transferred to the Burgoyne Bridge Project per CSD 27-2017 and investment income being higher than budget.

Transfers

The unfavourable year-to-date and forecasted variances of $4,954 and $7,025 is mainly a result of $1,513K for the change in classification of Sinking Fund investment and the $3,442 property sale proceeds transferred to the Capital Levy reserve and the Burgoyne Bridge capital project. Forecasted variance is offset by NRPS use of reserves to help fund their deficit.

Community Impacts & Achievements

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.
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