2013 Year End Operating Budget Variance Forecast

Staff memo.

At its meeting of September 15, 2013, the Corporate Administration, Finance and Enterprise Committee received the June 2013 Year End Variance Report that identified a projected year end unfavourable variance of $2.36 million (as of June 30, 2013). CAFE Committee further directed staff to provide monthly updates on progress towards mitigating the projected variance. This e-mail is provided as the last of these updates for 2013 and identifies the current adjustments achieved to date to offset through cost containment and mitigation strategies the $2.36 million described in the June 2013 Year End Variance Report. In total, save other unexpected pressures and/or savings occurring between now and year end 2013 staff currently project as of October 31, 2013 that there will be no (zero) year-end variance in 2013. However, due to staff to date only meeting the lower end of the ranges identified in previous monthly update e-mails to Council a draw from both the Legal and Winter Control reserves would be required to meet the current (as of October 31, 2013) favourable forecast of $92,000. The details for this forecast are found in the 2013 Operating Variance Report that was received by CAFE at its meeting of December 3, 2013.

Projected Variance (as at June 30, 2013)
$2.357 million

Less:

City Departments Cost Containment
$0.558 million

Reduced Benefits (new Contract September 2013)
$0.190 million

Lower Utility Costs (Community Energy Program)
$0.140 million

Lower Debt Servicing & MPAC costs $0.628 million

Unfavorable Local Boards / Shared Services $(0.337) million

Lower Tax Write Offs / Higher Supp Revenue
$0.570 million

Sub-Total Mitigation / Cost Containment Strategies
$1.749 million

Projected Shortfall / (Surplus) Before Reserves
$0.608 million

(as at August 31, 2013)

Legal Reserve
$0.350 million

Winter Control Costs Reserve Offset
$0.350 million

Projected Shortfall / (Surplus) After Reserves
$(0.092) million

(as at October 31, 2013)

The overview provided here relates to City departments and Local Boards and Shared Services. It further assumes that the 2013 Efficiency Target will be met. As described in the December 3, 2013 CAFE Report on the Efficiency Target staff have identified $447,000 in efficiencies ($683,000 annualized). In summary, staff continue to seek means to further reduce the need for drawing on the Legal or Winter Control contingency reserves, but remain confident that budget will be met for yearend 2013 either way.   Staff

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