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HomeMy WebLinkAboutCS 41-08 CilJI 0# REPORT TO EXECUTIVE COMMITTEE Report Number: CS 41-08 Date: September 8, 2008 .""" 5 I ~ From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Cash Position Report as at June 30, 2008 Recommendation: Th~t Repo~ CS 41-08 of the Director, Corporate Services & 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 June 30, 2008. Financial Implications: The cash position of the Corporation for six months ended June 30, 2008 was a net increase in cash of $4,616,927 to $7,965,887. Sources of Funds totalled $114,194,202 and Uses of Funds totalled $109,577,275. Mid-year cash balances and future revenues are set to meet the cash requirements for the second half of 2008. The positive net cash balance shows the City is in a sound financial position vis-a.-vis the 2008 budget. Sustainability Implications: This report does not contain any sustainability implications. Background: This report presents a six-month period of activity ending June 30, 2008. 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 half of 2008. Subcategories have been identified to highlight those cash transactions that are significant in nature or large dollar value transactions for the City Report CS 41-08 Date: September 8, 2008 Subject: Cash Position Report as at June 30, 2008 Page 2 i.~~ r; of Pickering. This schedule summarizes the increase in cash of $4,616,927 over the first six months. The 2008 mid-year balance is approximately $291,000 less compared to 2007. However, year to year periodical comparisons may not be useful due to timing of receipts and disbursements. Continuity of Taxes Receivable: Attachment 2 summarizes the tax related transactions from January 1 to June 30, 2008 and provides the outstanding taxes receivable as at June 30, 2008. 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 $59.1 million is approximately 43.8% of the $134.8 million total taxes billed as at June 30, 2008. This percentage is comparatively high as a large portion of the current year's taxes due on July 9, 2008 are reported as outstanding as at June 30, 2008. Of the total outstanding $68.2 miilion taxes receivable, $59.1 million or 86.7% are from the current year and $9.1 million or 13.3% are from prior years. Outstandinq Investments: Attachment 3 reflects the short-term and long-term investments for both the Current Fund and the Reserve Funds outstanding as at June 30, 2008. Investments vary within every year depending on the timing of the collection and remittance of development charges and supplementary taxes. Total investment portfolio as at June 30, 2008 is $50.4 million with $4.2 million coming from internal loans and $46.2 million from general investments. 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 $4,903,931 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. Development charges collected in the first six months of 2008 is approximately $3.2 million or 190.7% higher than the amount collected over the same period in 2007. 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 first half of 2008 total collections of the City portion of development charges are up over the same period last year and the highest over the same period from 2003. This is Report CS 41-08 Date: September 8, 2008 Subject: Cash Position Report as at June 30, 2008 Page 3 :' '7 ,~.; ; consistent with the 383 Building Permits issued this year compared to 287 issue over the same period last year, an increase of 33%. 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 2003 - 2007 (Semi-annual) 8. City Portion of Development Charges Collected 1991-2007 Prepared By: Approved I Endorsed By: ""t:/'))i'(" / t'li : I.{ . ,,':---, tit ,""'"---- ,..... '<,' 1 - '-;' .. . :9--::,2. >;#'7.> -- ...,~, i..-====~,.~.~~:.:,;.. "j;;'" "'~ Gillis A. Paterson Director, Corporate Services & Treasurer Dennis P. Arboleda Supervisor, Accounting Services :da Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Co "I _\ ,r; TTACHMENT#-LTOREPORTh .,~ <-/1' , .. q ,J C City of Pickering Cash Position Statement for six months ending June 30, 2008 Sources of Funds: Accounts Receivable collected $ 2,924,839 Development charges collected 4,903,931 Operating 2,024,907 Grants-in-lieu: Federal 802,387 Provincial 338,681 Ontario enterprises 4,034,893 Municipal enterprises 651,457 Linear Properties - Federal specific grants 10,935 Ontario specific grants 1,117,742 Interest Income 867,271 Sale of land - Tax payments received 96,495,652 POA Revenue 21,507 Total $ 114,194,202 Use of Funds: Operating and Capital Expenditures $ 29,575,317 Payroll 16,366,530 Region Levy 40,565,449 Regional portion of Dev. Charges 1,699,726 School Board Levies 20,808,126 School Board portion of Dev. Charges 163,170 Debenture payment to Region 398,957 Total $ 109,577,275 Net Cash Increase (Decrease) $ 4,616,927 FINANCIAL POSITION Bank Balance Net Cash Bank Balance January 1, 2008 Provided (Used) June 30, 2008 Current Fund $ 3,348,960 $ 4,616,927 $ 7,965,887 TOTAL $ 3,348,960 $ 4,616,927 $ 7,965,887 Note: Includes City, Region and School Boards Cash Position June 2008NET CHANGES City of Pickering Continuity of Taxes Receivable for six months ending June 30, 2008 Dec 31/07 Penalty and Taxes Supplementary Tax Payments and Jun 30/08 Receivable Interest Added Billed Taxes Billed Write Ofts Adjustments Receivable $ $ $ $ $ $ $ Current Year Taxes 134,792,915 (43,535) (75,618,140) 59,131,240 Penalty and Interest 251,584 (134,107) 117,477 2007 Taxes 6,465,409 (265,461 ) (2,322,972) 3,876,976 Penalty and Interest 353,262 414,708 (367,776) 400,194 2006 Taxes 2,682,996 (79,739) (766,598) 1,836,659 Penalty and Interest 357,171 175,215 (205,635) 326,751 2005 Taxes 1,011,874 (276) (338,751) 672,847 Penalty and Interest 252,683 86,386 (125,223) 213,846 Prior Years Taxes 1,734,472 (323,711) 1,410,761 Penalty and Interest 279,700 64,579 (147,536) 196,743 TOTAL 13,137,567 992,472 134,792,915 - (389,011 ) (80,350,449) 68,183,494 2008 Tax installment due dates: Commercial (February 28 & April 28, 2008) Residential (February 28, April 28, July 9, September 26, 2008) Tax Write Offs reflects "Minutes of Settlement", Assessment Review Board Decisions and Council approved adjustments under Section 357 & 358 of the Municipal Act, 2001. Cash Position June 2008TAXES RECVBL ~ )1 n ::r: 3: 'i-i- \D ~ ;,;;; -I ':;tr~ ...1::.. 0<;' City of Pickering Outstanding Investments as at June 30, 2008 Name of Financial Purchase Maturity Interest Principal Interest #of Days Value at Security Institution Date Date Rate Amount Payable OIS Maturity SHORT TERM INVESTMENTS Current & Reserve Fund Investments Nesbitt Burns BNS BA 24-Apr-08 23-Jul-08 3.00% 3,026,589.85 22,410.15 90 3,049,000.00 Nesbitt Burns BNS BON DISCOUNT NOTE 14-May-08 14-Aug-08 3.00% 2,999,304.78 22,695.22 92 3,022,000.00 Nesbitt Burns BNS BON DISCOUNT NOTE 23-May-08 25-Aug-08 2.94% 3,039,004.38 22,995.62 94 3,062,000.00 Nesbitt Burns FIRST BANK BA 03-Jun-08 02-Sep-08 2.87% 4,831,451.40 34,548.60 91 4,866,000.00 Nesbitt Burns BNS BON DISCOUNT NOTE 12-Jun-08 17 -Sep-08 2.95% 4,274,483.76 33,516.24 97 4,308,000.00 Nesbitt Burns BNS BON DISCOUNT NOTE 26-Jun-08 25-Sep-08 3.00% 1,195,066.32 8,933.68 91 1,204,000.00 Nesbitt Burns BNS BON DISCOUNT NOTE 26-Jun-08 25-Sep-08 3.00% 3,234,818.22 24,181.78 91 3,259,000.00 TOTAL SHORT TERM INVESTMENTS $ 22,600,718.71 $ 169,281.29 $ 22,770,000.00 LONG TERM INVESTMENTS Current & Reserve Fund Investments 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 Nesbitt Burns CANADA HOUSING TRUST 02-Aug-06 15-Sep-09 4.65% 3,930,566.75 SEMI-ANNUAL (MAR 15 & SEP 15) 3,883,000.00 Nesbitt Burns BNS DEPOSIT NOTES 18-Mar-08 18-Feb-08 3.93% 1,276,697.70 SEMI-ANNUAL (FEB 18 & AUG 18) 1,266,000.00 Nesbitt Burns CANADA HOUSING TRUST 01-May-08 15-Mar-10 3.75% 2,624,132.73 SEMI-ANNUAL (MAR 15 & SEP 15) 2,589,000.00 Nesbitt Burns CANADA HOUSING TRUST 01-May-08 15-Sep-10 3.55% 2,986,422.15 SEMI-ANNUAL (MAR 15 & SEP 15) 2,957,000.00 Nesbitt Burns ALBERTA DEPOSIT NOTES 22-Apr-08 01-Jun-11 4.10% 3,059,400.00 SEMI-ANNUAL (JUN 1 & DEC 1) 3,000,000.00 Nesbitt Burns CANADA HOUSING TRUST 18-Mar-08 15-Sep-11 4.60% 2,584,568.25 SEMI-ANNUAL (MAR 15 & SEP 15) 2,475,000.00 Nesbitt Burns PROVINCE OF ONTARIO 22-Apr-08 02-Dec-11 4.40% 3,087,900.00 SEMI-ANNUAL (JUN 2 & DEC 2) 3,000,000.00 Nesbitt Burns BANK OF MONTREAL 26-Feb-08 26-Feb-14 4.05% 2,000,000.00 SEMI-ANNUAL (FEB 26 & AUG 26) 2,000,000.00 Nesbitt Burns BANK OF MONTREAL 25-Jun-08 25-Jun-12 4.60% 1,620,000.00 SEMI-ANNUAL (MAY 19 & NOV 19) 1,620,000.00 TOTAL LONG TERM INVESTMENTS $ 23,785,939.22 $ 23,409,000.00 TOTAL INVESTMENTS $ 46,386,657.93 $ 46,179,000.00 Internal Investments to Capital Projects Yield: 3.67 - 4.70% $ 4,184,100.00 Term: 3 - 10 years Cash Position June 2008SECURITIES 0", C:) ~~..... )'> () :r: / _.:;.. u"i ("""oJ t. ~ .~ '. City of Pickering Development Charges Collected for six months ending June 30, 2008 Durham District Durham Catholic City's Portion Region of Durham School Board School Board Total $ $ $ $ $ AMOUNT COLLECTED January 232,314 752,715 3,832 1,348 990,209 February 54,672 5,115 6,706 2,359 68,852 March 840,647 898,069 103,464 36,396 1,878,576 April 0 1,321 0 0 1,321 May 91,586 26,596 3,832 1,348 123,362 June 671,184 1,059,057 82,388 28,982 1,841,611 TOTAL 1,890,403 2,742,873 200,222 70,433 4,903,931 '\....... =~,J '-{ ;t>. () :r: 3: Ii', " :tt. , ~ '.J''-\ -L. .--'> City of Pickering Other Development Contributions CJ'- ~) for six months ending June 30, 2008 CONTRIBUTIONS: Cash - In - Lieu of Parkland $446,900 TOTAL CASH-tN-LIEU $446,900 --' ~ () :r:: -<- rro v, r" -l, Cash Position June 20080ther 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 - 2008 I -+- No. of Permits I ~ --------+ "- / ,// ------. \ \ \ \ \ \ -" n "'-" t-~ . 2000 2001 2002 2003 2004 2005 206 2007 2007 2008 1st 2nd 1st Half Half Half :j:j: t......." ,"'t, IL/ '-) \ , 0.J ~ -- c~ 3,000,000.00 2,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 500,000.00 0.00 City Portion of Development Charges Collected 2003 - 2008 I--+- City Portion I ./ ~~ / 1st half 2nd .2003 half 2003 1st half 2nd 2004 half 2004 1 st half 2nd 2005 half 2005 1st half 2nd 2006 half 2006 1st half 2nd 2007 half 2007 / 1st half 2008 CJ' ~ > :-1 -1 )> n :r: 3:: rr~ .~ ~ ~, v': ...c.. '-" c.c;' City Portion of Development Charges Collected 1991 - 2008 4,000,000 3,500,000 3,000,000 2,500,000 I / j 2,000,000 1,500,000 I / / I 1,000,000 500,000 ~' ...-' / / ~ \ I-+- City Portion I i \ \ \ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~1:t !:-' ~,~ z -.. 'J\ r '..-' (Jl (:;\1