HomeMy WebLinkAboutCS 11-08
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 11-08
Date: March 17, 2008
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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
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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:
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~(Le>r.,.n/1 ,," . L<.-' {,;?/(,.c:.,- -
Dennis P. Arboleda
Supervisor, Accounting Services
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Gillis A. Paterson =~~'-'-'-'-
Director, Corporate Services & Treasurer
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Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
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I-\TTACHMENT # I Te) R;1:PO!1T# ,;1,' /1' )?
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-. 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
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Total Taxes Levied in 2007 including Region and School Boards:
$150,682,172.00
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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.
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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
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TOTAL INVESTMENTS $ 46,758,871.53 $ 46,886,000,00 l!
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Internal Investments to Capital Projects Yield: 3.67 - 4.70% $ 4,184,098.00 Term: 4 - 10 years
Cash Position Dec 2007SECURITIES i~
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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
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Other Development Contributions
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for six months ending December 31, 2007
CONTRIBUTIONS:
Cash - In - Lieu of Parkland $19,600
TOTAL CASH-IN-L1EU $19,600
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Cash Position Dee 20070ther Dev.Contrbtns
900
850
800
750
700
650
600
550
500
450
400
350
300
250
200
150
100
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Building Permits Issued
2000 - 2007
I -- No. of Permits I
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City Portion of
Development Charges Collected
1991 - 2007
4,000,000
3,500,000
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