Item - 2014.BU54.4
- This item was considered by Budget Committee on May 1, 2014 and was adopted with amendments.
BU54.4 - Operating Variance Report for the Three Month Period Ended March 31, 2014
- Decision Type:
The Budget Committee recommends to the Executive Committee that:
1. City Council approve the budget adjustments detailed in Appendix F to the report (April 14, 2014) from the Deputy City Manager and Chief Financial Officer, to amend the 2014 Approved Operating Budget between Programs with no impact to the 2014 Approved Net Operating Budget.
2. The Executive Committee request the Chair, Toronto Police Services Board to report to the Budget Committee explaining why there has been a drop in the number of tickets being issued.
The purpose of this report is to provide Council with the City of Toronto Operating Variance for the three-month period ended March 31, 2014 as well as year-end projections and to request Council's approval for amendments to the 2014 Approved Operating Budget between Programs to ensure accurate reporting and financial accountability with no increase to the 2014 Approved Net Operating Budget.
For the three-month period ended March 31, 2014, Tax Supported Operations reported a favourable net variance of $53.184 million or 5.7%, as noted in Table 1 below.
(See Table 1 of the Report dated April 14, 2014 from the Deputy City Manager and Chief Financial Officer)
Under-spending was driven largely by salary and benefit savings from vacant positions that were not filled, Shelter, Support and Housing Administration savings in salaries and benefits and higher than planned funding from the Community Homelessness Prevention Initiative, and reduction in caseload for Toronto Employment and Social Services. In addition, higher than budgeted revenue from permit applications for Toronto Building and the Municipal Land Transfer Tax contributed to the favourable net variance.
Projections indicate that the 2014 year-end position will result in a net unfavourable variance of $1.783 million. The year-end projection is primarily due to under-achieved net revenue from Court Services ($27.066 million), Toronto Transit Commission conventional service ($5.0 million) and over-expenditures for Tax Deficiencies of ($4.038 million).
Table 2 below summarizes Rate Supported Program net variances:
(See Table 2 of the Report dated April 14, 2014 from the Deputy City Manager and Chief Financial Officer)
The year-to-date unfavourable net variance of $16.841 million was driven by Toronto Water's net over-spending $15.490 million, primarily due to increased utility costs from the extreme winter weather resulting in fluctuations in hydro use. Rate Supported Programs project a 2014 year-end favourable variance of $9.876 million.
Table 2a below summarizes the vacancy rate for three months ended March 31, 2014 and projections to year-end.
(See Table 2a of the Report dated April 14, 2014 from the Deputy City Manager and Chief Financial Officer)
For year-to-date, the City recorded a vacancy rate of 3.6% after gapping under the approved complement of 52,668. The forecasted year-end vacancy rate after gapping is projected to be 0.3% under the approved complement of 52,668. A more detailed analysis is provided in the 'Approved Complement' section.
(April 14, 2014) Report from the Deputy City Manager and Chief Financial Officer - Notice of Pending Report
Councillor Gord Perks
That the Executive Committee request the Chair, Toronto Police Services Board to report to the Budget Committee explaining why there has been a drop in the number of tickets being issued.