Staff Report: 2014 Surplus
Analysis of the Town's 2014 financial results, identifying a deficit in the general fund and a surplus in the sewer fund.
TOWN OF VIEW ROYAL
COMMITTEE OF THE WHOLE REPORT
TO: Council DATE: April 28, 2015 FROM: J. Beauchamp, Director of Finance MEETING: May 12, 2015
2014 SURPLUS
RECOMMENDATION:
THAT the Committee receive the April 28, 2015 2014 Surplus report for information.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
PURPOSE:
To provide the Committee with information regarding 2014 surplus.
BACKGROUND:
All revenue and expense items that are not funded by a specific source impact surplus each year. Items funded by Casino revenue, Development Cost Charges or similar sources do not impact surplus as the revenue is recognized to match a specific expense. Additionally, a surplus or deficit for RCMP costs is transferred to/from the police operating reserve and as a result the RCMP budget does not impact annual surplus for the year. As the land for 280 Island Highway was put up for sale in 2014 the value was reclassified from equity in a tangible capital asset to a financial asset. The historical value is now recorded in the general operating fund as surplus.
Below is a summary of the accounts and the impact on the general operating fund surplus and the sewer fund surplus. In 2014 the Town had a deficit of $553,129 in the general fund and a surplus of $24,628 in the sewer fund.
The surplus account is always in a credit or negative position. A negative or credit number under the surplus column indicates an increase to surplus while a debit or positive number indicates a decrease to surplus.
General Operating Fund
| Revenue | Amount | Notes |
|---|---|---|
| Property Taxes | (5,210) | |
| Sales Of Service | (105,586) | Building Permits $92K |
| Fines & MTI | (3,031) | |
| Cost Recovery | (52,693) | ICBC Payments |
| Other Revenue | (63,615) | Engineering Inspection Fee $53K |
| Return on Investment | (65,814) | Interest $42K, late property tax fee $23K |
| Unconditional Grants | (3,941) | |
| Conditional Grants | (2,871) | |
| Total Revenue | (302,761) |
| Expense/Transfers | Amount | Notes |
|---|---|---|
| Legislative | (25,963) | Conferences $10K, business meals $3K, Advisory Committees $4K, Election $10K |
| Public Relations | (631) | |
| Administrative | (101,625) | Legal $40K, advertising $12K, property claims $18K, consultants $5K, OH&S $5K |
| Finance | 19,454 | Staffing ($24K) |
| Information Technology | (1,857) | |
| Fire Services | (45,399) | Education & Training $14K; Heating $9K & Hydro $12K late move to PSB |
| Emergency Planning | (14,125) | |
| Building Inspection | (17,284) | Staffing $18K |
| Bylaw Enforcement | (16,577) | Staffing $15K |
| Transportation Admin | (40,228) | Staffing $28K |
| Transportation Roads | 25,054 | Boulevards ($50K) |
| Environmental Health Services | (36,573) | Overpayment credit $14K |
| Planning Services | (19,904) | Staffing $8K, Education & Training $8K, OCP implementation $5K |
| Parks Services | (8,939) | |
| Library Services | (3,357) | |
| Bank Charges | 3,495 | |
| Debenture Debt - Interest | 19,059 | Estimated interest rates |
| Debenture Debt - Payment | (92,182) | PSB building debt. Was not required due to timing debt was acquired. |
| Transfer from Capital - Fire Hall Land Equity | (100,000) | Equity transfer between funds |
| Transfer to Operating and Capital from Surplus | 1,313,473 | Trf from surplus to operating but mainly capital (PSB etc.) |
| Total Expenses/Transfers | 855,890 | |
| 2014 Deficit | 553,129 |
Sewer Fund
| Revenue | Amount |
|---|---|
| Interest, Penalties, and Commissions | (22,470) |
| Sewer Fees | 407 |
| Total Revenue | (22,063) |
| Expense/Transfers | Amount |
|---|---|
| Environmental Health-General | (5,365) |
| Environmental Health-Vehicles | (1,124) |
| Sewage Collection | (42,960) |
| Sewage Lift Stations | (5,868) |
| Grinder Pumps | (12,990) |
| Temporary Borrowing for PSB | 65,742 |
| Total Expenses/Transfers | (2,565) |
| 2014 Surplus | (24,628) |
RECOMMENDATION:
THAT the Committee receive the April 28, 2015 2014 Surplus report for information.
SUBMITTED BY: J. Beauchamp, Director of Finance
REVIEWED BY: K. Anema, Chief Administrative Office
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