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HomeMy WebLinkAboutCS 11-08 REPORT TO EXECUTIVE COMMITTEE Report Number: CS 11-08 Date: March 17, 2008 1 4 <) From: Gillis A. Paterson Director, Corporate SeNices & Treasurer Subject: Cash Position Report as at December 31 t 2007 Recommendation: It is recommended that report CS 11-08 from the Director, Corporate SeNices & Treasurer be received for information. Executive Summary: The attached schedules provide the City of Pickering's cash position, continuity of taxes receivable, outstanding investments, development charges collected and other development contribution information for the six months ended December 31,2007. Financial Implications: The cash position of the Corporation for six months ended December 31, 2007 was a net decrease in cash of $5,064,750 to $3,191,771 due mainly to settlement of the large assessment appeal. Sources of Funds totalled $118,073,389 and Uses of Funds totalled $123,138,139. Sustainability Implications: implications. This report does not contain any sustainability Background: This report presents a six-month period of activity ending December 31,2007. The discussion below describes the purpose and the information contained in each of the attached schedules. Statement of Cash Position: Attachment 1 reflects the sources and uses of funds for the second half of 2007. Subcategories have been identified to highlight those cash transactions that are significant in nature or large dollar value transactions for the City of Pickering. This schedule summarizes the decrease in cash of $5,064,750 over the last six months. The decrease is mainly due to the settlement of an outstanding assessment appeal in which a portion of prior year's taxes had to be refunded. The 'fU'j".'" ')1' 'i'f' 1- Wllil Report CS 11-08 Date: March 17, 2008 sl~eot: Cash Position Report as at December 31, 2007 Page 2 2007 year end balance is approximately $429,000 more than 2006. However, year to year periodical comparisons may not be useful due to timing of receipts and disbursements. Year end cash balances and future revenues are set to meet the cash flow requirements early in the following year. Continuity of Taxes Receivable: Attachment 2 summarizes the tax related transactions from July 1 to December 31, 2007 and provides the outstanding taxes receivable as at December 31, 2007. This balance represents all three levels of taxes billed, such as City, Region and School Boards. This has increased over the past several years but may vary where due dates and amounts for supplementary billings change from year to year. Current year's taxes receivable of $6.5 million is approximately 4.3% (2006 - 4.2%) of the $150.0 million total taxes billed as at December 31, 2007. The outstanding balance of $13.1 million is approximately 8.7% (2006 - 8.2%) of the $150.0 million total taxes billed in 2007 which is comparable to prior year. Outstandinq Investments: Attachment 3 reflects the short-term and long-term investments for both the Current and Reserve Funds outstanding as at December 31, 2007. There has been a 4.3% decrease in total investments from $49.0 million last year to $46.9 million this year due to the use of funds for the settlement of previous year's tax assessment appeal. Total investment portfolio as at December 31, 2007 is $51.1 million with $4.2 million coming from internal loans and $46.9 million from general investments. The investment portfolio continues to perform well and once again we anticipate meeting or exceeding market return indicators. Development Charqes Collected: Attachment 4 indicates the total development charges for the City, Region and School Boards, as the City is responsible for collecting development charges on behalf of all levels of government. The total amount collected of $2,002,852 agrees with the balance indicated under Sources of Funds on Attachment 1. However the remittance of development charges to the Region and School Boards indicated under the Use of Funds is different than the total collected on Attachment 4. This variance is a result of timing differences because payments to the Region and School Boards are due 25 days following the month collected. The amount collected continues to decrease reflecting the lower levels of building activity in recent years. Other Development Contributions: Attachment 5 is provided to show other significant development contributions that have been received. Multi year Receipts: The balance of the tables shows multi year receipts. The collections of the City portion of development charges have decreased by 17.8% or $332,750 from $1,870,117 in 2006 to $1,537,367 in 2007 as the City's limited growth period continues. The 592 building permits issued during 2007 is a slight increase over the 574 issued in 2006. Report CS 11 -08 Date: March 17, 2008 Subject: Cash Position Report as at December 31, 2007 Page 3 1 5 1 Attachments: 1 . Statement of Cash Position 2. Continuity of Taxes Receivable 3. Outstanding Investments 4. Statement of Development Charges Collected 5. Other Development Contributions 6. Building Permits Issued 2000 - 2007 7. City Portion of Development Charges Collected 1991-2007 Prepared By: Approved I Endorsed By: It, " IJ {i6 IL ~(Le>r.,.n/1 ,," . L<.-' {,;?/(,.c:.,- - Dennis P. Arboleda Supervisor, Accounting Services ~...~... ..,.".,.,...". -'~~...' -,-" ~ ~ .'.',' --"''''- ',',. '. .. """","> ",........- ,............ ,..... . . -'--... ......' --'" .. ,-"'",,,,../" /: _/"",,,,, -" "":::.> " C -,-~ . "" .' .... .... .....- ~ Gillis A. Paterson =~~'-'-'-'- Director, Corporate Services & Treasurer :da Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council / ~ ",/ ,/ J-----.ii'"' 1 52 I-\TTACHMENT # I Te) R;1:PO!1T# ,;1,' /1' )? -.l.-. .....;, ."'J \" .....- ~ ~-..j -. City of Pickering Cash Position Statement for six months ending December 31, 2007 Sources of Funds: Accounts Receivable collected $ 509,243 Development charges collected 2,002,852 Operating 25,322,948 Grants-in-lieu: Federal 1 ,747,442 Provincial 1 ,764,074 Ontario enterprises 3,776,238 Municipal enterprises 3,835,678 Linear Properties 2,046,389 Federal specific grants 87,919 Ontario specific grants 197,450 Interest Income 1,607,529 Sale of land 19,213 Tax payments received 75,080,891 POA Revenue 75,523 Total $ 118,073,389 Use of Funds: Operating and Capital Expenditures $ 43,834,762 Payroll 16,199,224 Region Levy 40,438,208 Regional portion of Dev. Charges 1,201,225 School Board Levies 20,707,361 School Board portion of Dev. Charges 145,040 Debenture payment to Region 612,319 Total $ 123,138,139 Net Cash Increase (Decrease) $ (5,064,750) FINANCIAL POSITION Bank Balance Net Cash Bank Balance Julv 1,2007 Provided (Used) December 31,2007 Current Fund $ 8,256,520 $ (5,064,750) $ 3,191,771 TOTAL $ 8,256,520 $ (5,064,750) $ 3,191,771 Note: Includes City, Region and School Boards Cash Position Dee 2007NET CHANGES City of Pickering Continuity of Taxes Receivable for six months ending December 31, 2007 Jun 30/07 Penalty and Taxes Supplementary Tax Payments and Dec 31/07 Receivable Interest Added Billed Taxes Billed Write Ofts Adjustments Receivable $ $ $ $ $ $ $ Current Year Taxes 55,989,022 21,768,026 1,026,937 (287,674) (72,030,902) 6,465,409 Penalty and Interest 103,649 580,109 (330,496) 353,262 2006 Taxes 3,513,993 402,560 (14,137) (1,219,419) 2,682,997 Penalty and Interest 336,832 230,737 (210,398) 357,171 2005 Taxes 1,385,799 71,738 (38,871 ) (406,792) 1,011,874 Penalty and Interest 265,920 109,559 (122,797) 252,682 Prior Years Taxes 2,022,181 (7,979) (279,729) 1,734,473 Penalty and Interest 276,206 85,593 (82,100) 279,699 TOTAL 63,893,602 1,005,998 21,768,026 1,501,235 (348,661 ) (74,682,633) 13,137,567 )~> -I -l ~ n I 3. n'~-~ ";ir Total Taxes Levied in 2007 including Region and School Boards: $150,682,172.00 :f:l:' I ( . 'iii....,., .~ o ;:0 tn ~d o ;;:J -i =It 1.'-- , . /', '-' , ~ .- 2007 Supplementary Tax Due Dates: Residential: (Interim) Commercial: (Interim) Residential: (Final) Commercial: (Final) October 30 & November 29 December 14 & December 18 February 27 & April 27, 2007 February 27 & April 27, 2007 July 11 & September 27, 2007 October 12,2007 2007 Interim Tax instalment due dates: Tax Write Offs reflects "Minutes of Settlement", Assessment Review Board Decisions and Council approved adjustments under Section 357 & 358 of the Municipal Act, 2001. CTl C CJ'.J "4 Cash Position Dec 2007T AXES RECVBL City of Pickering Outstanding Investments as at December 31, 2001 Name of Financial Purchase Maturity Interest Principal Interest #of Days Value at _ Security Institution Date Date Rate Amount Payable O/S Maturity ( SHORT TERM INVESTMENTS -~ Current & Reserve Fund Investments Nesbitt Burns FIRST BANK BA 11-0ct-07 07 -Jan-08 4.68% 4,598,152.50 51,847.50 88 4,650,000.00 Nesbitt Burns CIBC BA 29-0ct-07 25-Jan-08 4.51% 5,999,740.60 65,259.40 88 6,065,000.00 Nesbitt Burns FIRST BANK BA 05-Nov-07 29-Jan-08 4.41% 2,704,242.88 27,757.12 85 2,732,000.00 Nesbitt Burns FIRST BANK BA 14-Dec-07 14-Mar-08 4.48% 4,067,551.35 45,448.65 91 4,113,000.00 Nesbitt Burns TO BA 21-Dec-07 19-Feb-08 4.29% 2,921,406.00 20,594.00 60 2,942,000.00 TOTAL SHORT TERM INVESTMENTS $ 20,291,093.33 $ 210,906.67 $ 20,502,000.00 LONG TERM INVESTMENTS Current & Reserve Fund Investments SEMI-ANNUAL (JUN 27 & DEC 27) Nesbitt Burns FARM CREDIT CORP 27 -Jun-03 27-Jun-13 4.20% $ 250,000.00 Initial Maturity (June 27/05) $ 250,000.00 Nesbitt Burns CANADA HOUSING TRUST 02-Aug-06 15-Mar-08 4.40% 3,796,505.31 SEMI-ANNUAL (MAR 15 & SEP 15) 3,783,000.00 Nesbitt Burns PROVINCE OF ONTARIO 02-Aug-06 19-Nov-08 4.40% 4,102,402.10 SEMI-ANNUAL (MAY 19 & NOV 19) 4,085,000.00 Nesbitt Burns CANADA HOUSING TRUST 02-Aug-06 15-Sep-09 4.65% 3,930,566.75 SEMI-ANNUAL (MAR 15 & SEP 15) 3,883,00000 MONTHLY (29TH DAY) Initial Nesbitt Burns PROVINCE OF ONTARIO 29-0ct-04 29-0ct-14 4.50% 3,500,000.00 Maturity (Oct 29/06) 3,500,000.00 Nesbitt Burns PROVINCE OF ONTARIO 21-Jun-05 21 -J u n-1 0 3.70% 4,300,000.00 SEMI-ANNUAL (JUN 21 & DEC 21) 4,300,000.00 Nesbitt Burns CIBC 10-Feb-06 10-Feb-11 4.25% 2,000,000.00 SEMI-ANNUAL (FEB 10 & AUG 10) 2,000,000.00 Nesbitt Burns RBC 25-Apr-06 25-Apr-11 4.50% 2,000,000.00 SEMI-ANNUAL (APR 25 & OCT 25) 2,000,000.00 Nesbitt Burns PROVINCE OF ONTARIO 16-May-06 17-Apr-08 4.50% 1,972,052.40 ANNUAL (APR 17) 1,964,000.00 Nesbitt Burns PROVINCE OF ONTARIO 09-May-06 19-May-09 4.00% 616,251.64 SEMI-ANNUAL (MAY 19 & NOV 19) 619,000.00 TOTAL LONG TERM INVESTMENTS $ 26,467,778.20 $ 26,384,000.00 :: , '. , TOTAL INVESTMENTS $ 46,758,871.53 $ 46,886,000,00 l! ~ , Internal Investments to Capital Projects Yield: 3.67 - 4.70% $ 4,184,098.00 Term: 4 - 10 years Cash Position Dec 2007SECURITIES i~ c.. ....~ , City of Pickering Development Charges Collected for six months ending December 31, 2007 Durham District Durham Catholic City's Portion Region of Durham School Board School Board Total $ $ $ $ $ AMOUNT COLLECTED July 217,962 180,175 21,076 7,414 426,627 August 38,366 27,119 3,832 1,348 70,665 September 132,426 157,349 12,454 4,381 306,610 October 278,222 394,235 33,530 11,795 717,782 November 188,238 215,415 22,034 7,751 433,438 December 29,526 14,319 2,874 1,011 47,730 TOTAL 884,740 988,612 95,800 33,700 2,002,852 ~, '.' '" :to:; f ~, h~ ! ~ h V\ --" . ~ UI \ en s.." ; City of Pickering ~ Other Development Contributions (J1 Q""\ for six months ending December 31, 2007 CONTRIBUTIONS: Cash - In - Lieu of Parkland $19,600 TOTAL CASH-IN-L1EU $19,600 ---.~ '~ t. ,).> () :r:: 3: rn ~~ :t:t 1.:\ 1 .fj:. t...... 1[/, ; -.... ....... , C ~\ Cash Position Dee 20070ther Dev.Contrbtns 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 o Building Permits Issued 2000 - 2007 I -- No. of Permits I ,./'''- // / ~ / "'-., '1'" ~ 'l'"' () I d~ '1:-1- ~ ","" ','J 2000 2001 2002 2003 2004 2005 2006 2007 :,r\ '.J\ -... ~- , (Jle Cl,f, '-J J ~ City Portion of Development Charges Collected 1991 - 2007 4,000,000 3,500,000 / 1\ / \ 7 / ---1- ) 3,000,000 2,500,000 2,000,000 1,500,000 / 1,000,000 / ; l / / j 500,000 c..Jl co 1--.- City Portion I '~~. \ 4,"" ~ l o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ", V\ - - \ c::, 'J