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Home My WebLink AboutCS 23-03 Ciú/ o~ REPORT TO FINANCE & OPERATIONS COMMITTEE Report Number: CS 23-03 Date: May 12, 2003 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Cash Position Report as at March 31 , 2003 Recommendation: It is recommended that Report CS 23-03 from the Director, Corporate Services & Treasurer be received for information. Executive Summary: Section 286(1) of the Municipal Act, 2001 provides that cash position statements may be prepared by the Treasurer for the information of Council. 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 three months ended March 31 , 2003. Financial Implications: The cash position of the corporation for three months ended March 31, 2003 was a net increase in cash of $6,169,201. Sources of Funds totalled $44,256,083 and Use of Funds totalled $38,086,882. The large bank balance at March 31, 2003 arose as a result of timing differences between the receipt and disbursement of funds, particularly in regards to the first quarter payment of PIL revenues to the Region and taxation revenue to the School Boards. Approximately $5 million of this was invested in short-term investments in early April. Background: 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 first quarter of 2003. Subcategories have been identified to highlight those cash transactions that are significant in nature or large dollar value transactions for the City of Pickering. Continuity of Taxes Receivable: Attachment 2 summarizes the tax related transactions to March 31, 2003 and provides the outstanding taxes receivable as at March 31 2003. This balance represents all three levels of taxes billed, such as City, Region and School Report CS 23-03 Date: May 12, 2003 Subject: Cash Position Report as at March 31, 2003 Page 2 Boards. The significant outstanding balance arises due to timing between the billing date and tax installment dates. The interim billing was issued February and 50% of this amount is not due until April 28. Outstandinq Investments: Attachment 3 reflects the short-term and long-term investments for both the Current Fund and the Reserve Funds outstanding as at March 31,2003. 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 $1,556,506 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. Other Development Contributions: Attachment 5 is provided to show other significant development contributions that have been received. Attachments: 1. 2. 3. 4. 5. Statement of Cash Position Continuity of Taxes Receivables Outstanding Investments Statement of Development Charges Collected Other Development Contributions ::~ Audit Analyst <? - APprov~orsed By: ~/ , ~~~.._,. ---- " Gillis A. Paterson Director, Corporate Services & Treasurer Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council '" ," ,. ATTACHMENT#L-. TO REPORT#.£5.;)3-03 City of Pickering Cash Position Statement for the three months ending March 31, 2003 March, 2003 Sources of Funds: Accounts Receivable collected $ 308,700 Development charges collected 1,556,506 Operating 5,137,172 Grants-in-lieu: Federal 335,182 Provincial 359,962 Ontario enterprises 3,696,813 Municipal enterprises 102,124 Linear Properties 176,274 Federal specific grants - Ontario specific grants 9,648 Interest Income 140,656 Sale of land 90,170 Tax payments received 32,113,876 POA Revenue 229,000 Total $ 44,256,083 Use of Funds: Operating and Capital Expenditures $ 7,015,121 Payroll 6,745,455 Region levy 13,263,450 Regional portion of Dev. Charges 797,181 School Board levies 10,027,906 School Board portion of Dev. Charges 173,643 APT A Funding 64,128 Total $ 38,086,882 Net Cash Increase (Decrease) $ 6,169,201 FINANCIAL POSITION Bank Balance Net Cash Bank Balance Jan. 1,2003 Provided (Used) Mar. 31,2003 Current Fund $ 1,408,681 $ 6,169,201 $ 7,577,882 TOTAL $ 1,408,681 $ 6,169,201 $ 7,577,882 Note: Includes City, Region and School Boards Cash Position 1st quarter 2003.xlsNET CHANGES City of Pickering Continuity of Taxes Receivable for three months ending March 31, 2003 01-Jan-03 Penalty and Taxes Tax Payments and 31-Mar-03 Receivable Interest Added Billed Write Ofts Balance Adjustments Receivable $ $ $ $ $ $ $ Current Year Taxes - 55,551,672 - 55,551,672 29,857,194 25,694,477 Penalty and Interest - 54,401 54,401 32,288 22,113 2002 Taxes 4,611,899 (186,952) 4,424,947 1,093,725 3,331,222 Penalty and Interest 320,070 163,297 483,367 170,890 312,478 2001 Taxes 2,488,195 (87,793) 2,400,402 369,913 2,030,489 Penalty and Interest 330,046 68,764 398,810 109,763 289,047 Prior Years Taxes 1,636,759 118 1,636,877 224,899 1,411,979 Penalty and Interest 362,260 41,640 403,900 134,200 269,700 TOTAL 9,749,229 328,102 55,551,672 (274,626) 65,354,376 31,992,871 33,361,505 TOTAL TAXES LEVIED (including Region and School Boards) as at March 31, 2003 55,551,672 PERCENT OF CURRENT TAXES OUTSTANDING 60.05% Interim Tax instalment due dates: Residential: Commercial: February 26 and April 28 February 26 and April 28 (1) This amount includes $15.6 million for interim residential taxes billed on Jan 29,2003 but 50% not due until Apr 28,2003, and $40.0 million for interim commercial taxes billed on Feb 4, 2003 but 50% not due until Apr 28, 2003. Cash Position 1 st quarter 2003.xlsT AXES RECVBL (1 ) ~ ;;! () :J: 3: m Z -f ;: d ;0 m ~ ~ ~ .f..J <.v I ~ (¡, City of Pickering Outstanding Investments as at March 31, 2003 Name of Financial Purchase Maturity Interest Principal Interest Value at Security Institution Date Date Rate Amount Payable Yield Maturity SHORT TERM INVESTMENTS Current & Reserve Fund Investments Nesbitt Burns CIBC BA 8-Jan-03 11-Apr-03 2.75% $ 2,510,405.12 $ 17,594.88 2.77% $ 2,528,000.00 Nesbitt Burns BNS BA 3-Feb-03 30-Apr-03 2.83% 2,534,086.87 16,913.13 2.71% 2,551,000.00 Nesbitt Burns BNS BA 6-Feb-03 2-May-03 2.77% 2,418,398.06 15,601.94 2.76% 2,434,000.00 Nesbitt Burns Firstbank BA 6-Feb-03 7-May-03 2.79% 2,419,337.76 16,662.24 2.78% 2,436,000.00 Nesbitt Burns CIBC BA 14-Mar-03 13-Jun-03 3.03% 1,529,442.50 11,557.50 2.79% 1,541,000.00 Nesbitt Burns Firstbank BA 6-Mar-03 25-Jun-03 3.06% 1,999,414.22 18,585.78 2.80% 2,018,000.00 Nesbitt Burns TO BA 25-Mar-03 23-Jun-03 3.14% 6,028,404.75 46,595.25 2.41% 6,075,000.00 Nesbitt Burns CIBC BA 28-Mar-03 27-Jun-03 3.10% 2,036,240.64 15,759.36 2.69% 2,052,000.00 TOTAL SHORT TERM INVESTMENTS $ 21,475,729.92 $ 159,270.08 $ 21,635,000.00 LONG TERM INVESTMENTS Current & Reserve Fund Investments Nesbitt Burns Export Development Corp. 7-May-01 1-May-08 5.15% $ 2,001,693.15 May 1 & Nov. 1 5.15% $ 2,000,000.00 Nesbitt Burns Farm Credit Corp. 22-Jun-01 22-Jun-11 5.25% 250,000.00 Jun. 22 & Dec. 22 5.25% 250,000.00 Nesbitt Burns Export Development Corp. 26-0ct-01 22-0ct-09 4.25% 400,000.00 Oct. 22 & Apr. 22 4.25% 400,000.00 Nesbitt Burns Province of Ontario Note 6-May-02 6-May-09 4.62% 100,000.00 6th of each month 4.62% 100,000.00 TOTAL LONG TERM INVESTMENTS $ 2,751,693.15 $ 2,750,000.00 TOTAL INVESTMENTS $ 24,227,423.07 $ 24,385,000.00 Internal Investments to Capital Projects Term: 5 - 10 years Yield: 5.3 - 5.8% $ 7,672,074.00 Cash Position 1st quarter 2003SECURITIES ~ ~ n :r: 3: m Z -f F d ~ (3 ~ þ f.., ~ \ C::. l.;., City of Pickering Development Charges Collected for three months ending March 31, 2003 Durham District Durham Catholic City's Portion Region of Durham School Board School Board Total $ $ $ $ $ AMOUNT COLLECTED January 184,392 283,590 38,108 22,999 529,089 February 268,457 363,130 53,079 28,197 712,863 March 116,048 163,078 23,137 12,291 314,554 TOTAL 568,897 809,798 114,324 63,487 1,556,506 þ ~ ~ n :r 3: m Z -j F ö ;%:J m "'tJ a ~ =It I~ 't,; Uv cl w ATTACHMENT#..Æ.- TO REPOR.T#~3" 03 City of Pickering Other Development Contributions For three months ending March 31, 2003 CONTRIBUTIONS: Cash - In - Lieu of Parkland $58,400 TOTAL CASH-IN-LiEU OF PARKLAND $58,400 Cash Position 1st quarter 2003.xlsOther Dev.Contrbtns