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Home My WebLink AboutApril 04, 2024 - Council - AddendumTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM COUNCIL MEETING ADDENDUM Thursday, April 4, 2024 13.2 C Report TR-11/24 by Lorne James, Treasurer re 2024 Q1 Variance Report REPORT TREASURY DEPARTMENT TO: Mayor & Members of Council FROM: Lorne James, Treasurer DATE: April 4, 2024 REPORT: TR-11/24 SUBJECT: 2024 Q1 VARIANCE REPORT BACKGROUND The Q1 (first quarter) financial reports are provided for Council’s fiduciary review. This Report provides a summary of current revenue and expenditure to March 31, 2024, and variances to the Operating Budget and Capital Budget. DISCUSSION The Operating Budget and Capital Budget are both at expected levels given the cyclical nature of operations. Capital expenses have commenced in some departments, and with the early adoption of Capital and Operating Budgets, departments have been able to secure competitive pricing and availability of service providers. Investments The Municipality has an opportunity again to consider another round of investing of short-term (11 month) GICs with returns above 5.2 percent. Due to a strong quarter of collections of tax arrears and other receivables and reserve transfers, Bayham has excess cash-on-hand, which can be considered for short-term investment. Council may wish to consider allocating $1,000,000 into an 11-month GIC. Bayham has GICs coming up for maturity on April 10, 2024 for $1,500,000 Bayham and $5,000 each for Eden and Bayham West Cemetery. Staff are seeking direction regarding the investment of any additional funds as noted in this Report. STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable ATTACHMENTS 1. Appendix A: 2024 Q1 Operating Revenue & Expense Variance Report 2. Appendix B: 2024 Q1 Capital Expense Variance Report 3. Appendix C: Royal Bank of Canada Investment Options RECOMMENDATION 1. THAT Report TR-11/24 re 2024 Q1 Variance Report be received for information; 2. AND THAT Council provide direction regarding the investment of excess cash-on-hand. Respectfully submitted, Reviewed by, Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer Revenues 05.10 General Taxation $1,584,089 $6,334,690 25% 05.20 Other Revenues $234,460 $952,065 25% 10.10 General Government $11,083 $82,047 14%timing of management fee 10.20 Council 20.10 Fire Services $7,293 $22,000 33% 20.20 Police Services $5,000 0%no POA revenues yet in 24 20.30 Conservation Authority 20.40 Building Services $32,308 $122,000 26% 20.50 Bylaw Enforcement Services $8,988 $46,000 20% 25.10 Roads $207,039 $590,196 35% 25.20 Winter Control $1,348 $3,000 45% 25.40 Street Lights $0 30.10 Water $114,070 $765,081 15%timing of billing cycle 30.15 Richmond Water $16,148 $101,767 16%timing of billing cycle 30.30 Waste Disposal $3,616 $35,000 10% 30.20 Waste Water $156,994 $982,500 16%timing of billing cycle 35.20 Cemeteries $589 $2,000 29% 40.10 General Assistance $0 45.10 Parks & Recreation $2,600 0%grants yet to be received 45.20 Straffordville Community Centre $4,868 $10,000 49% 45.40 Libraries $77,357 0%County lease yet to arrive 45.50 Museums $10,960 $19,200 57% 50.10 Planning, Development & Tourism $50,916 $101,500 50% 50.15 Tourism & Marketing $15,000 0%timing of lease contract 50.20 Environmental Services $3,500 0% Capital $232,314 $4,433,653 5%early start to capital Expenditures 05.10 General Taxation $0 05.20 Other Revenues $0 10.10 General Government $362,107 $1,416,988 26% 10.20 Council $23,886 $101,626 24% 20.10 Fire Services $138,986 $631,710 22% 20.20 Police Services $958,949 0% 20.30 Conservation Authority $52,873 $105,747 50%timing of payment 20.40 Building Services $1,904 $104,848 2%shared service invoice outstanding 20.50 Bylaw Enforcement Services $32,928 $115,258 29% 25.10 Roads $473,518 $1,953,466 24% 25.20 Winter Control $36,241 $118,805 31% 25.40 Street Lights $7,479 $44,000 17% 30.10 Water $111,290 $765,081 15%timing of water board invoices 30.15 Richmond Water $8,507 $101,767 8% 30.20 Waste Water $157,368 $982,500 16% 30.30 Waste Disposal $73,676 $390,000 19% 35.20 Cemeteries $0 $22,500 0% 40.10 General Assistance $7,000 0% 45.10 Parks & Recreation $25,821 $116,382 22% 45.20 Straffordville Community Centre $30,516 $69,168 44% 45.40 Libraries $11,666 $77,357 15% 45.50 Museums $60,695 0% 50.10 Planning, Development & Tourism $36,455 $207,015 18% 50.15 Tourism & Marketing $3,603 $74,984 5% 50.20 Environmental Services $1,704 $8,300 21% Capital $87,788 $6,272,000 1%early start to capital Municipality of Bayham Appendix A: 2024 Q1 Operating Revenue and Expense Variance Report 2024 Actuals 2024 Budget % Consumed 2024 2024 % Actuals Budget Consumed General Government Development Charges Study 14,327$ 35,000$ 41%ongoing Liability Reserve Transfer -$ 15,000$ 0% not booked yet Working Capital Transfer -$ 10,000$ 0% not booked yet Election Reserve Transfer -$ 15,000$ 0% not booked yet Guarantorship Loan Reserve Transfer -$ 1,000,000$ 0% not booked yet Fire Technical Rescue 7,500$ 0% Cistern - SCC 129,000$ 0% Radio System Reseve 30,000$ 0% Pumper 1 550,000$ 0% arrives in 2025 Portable Radios 8,267.94$ 6,000$ 138% Done Bunker Gear 12,607.43$ 14,000$ 90% Done Fire Equipment Reserve Transfer 100,000$ 0% not booked yet ATV Trailer 4,641.21$ donation of funds Roads Stewart Bridge 75,000$ 0% Tunnel Line Culvert removal 1,033$ 200,000$ 1% Pickup 60,000$ 0% tendered GPS Survey Equipment 25,440$ 25,000$ 102% Done Tollgate Rd. 400,000$ 0% Vienna Line 221$ 230,000$ 0% Works 65,000$ 0% Gravel Program 215,000$ 0% Road Signs 7,500$ 0% Guardrails 10,000$ 0% B & C Inspection 10,000$ 0% Road Side Brushing 16,432$ 30,000$ 55% Road Needs Study / AMP Update 55,000$ 0% Hill Management 30,000$ 0% Water Equipment - Richmond 15,000$ 0% Water Financial Plan 17,500$ 0% Richmond Well Review 20,000$ 0% Waste Water System Equipment 45,000$ 0% Forcemain 10,000$ 0% Water Financial Plan 17,500$ 0% Manhole rehab 25,000$ 0% Switch Upgrades 32,000$ 0% Eden PS Up 250,000$ 0% Parks Canoe Launch 60,000$ 0% Rail Train Works 70,000$ 0% Facilities PW HVAC/Heat Tubes 100,000$ 0% PB Library Washroom 1,408$ 20,000$ 7% just started PB Beach Washroom Expansion 75,000$ 0% Facility Audits 35,000$ 0% SCC Expansion 2,171,000$ 0% MM Accessible Washrooms 60,000$ 0% Lighthouse 464$ -$ ongoing rental costs Planning and Development Official Plan Review 65,000$ 0% Municipality of Bayham Appendix B: 2024 Q1 Capital Expense Variance Report P a g e | 1 This document contains confidential, proprietary, and trade secret information of RBC Royal Bank of Canada and may not be disclosed to third parties or duplicated without the prior written consent of RBC Royal Bank of Canada. INVESTMENT OPTIONS THE CORPORATION OF THEMUNICIPALITY OF BAYHAM APRIL 3, 2024 GUARANTEED INVESTMENT CERTIFICATES RBC offers a wide range of CAD term investment options to meet your needs. Below you will find the details for our Prime-Linked Cashable GIC and various terms of our Non-Redeemable GICs. Principal and interest as described are Guaranteed by RBC Royal Bank. Rates are calculated on a per annum basis. 1) Prime-Linked Cashable GIC: The Prime-Linked Cashable GIC is a one-year cashable GIC with an annual interest rate linked to changes in the RBC Royal Bank Canadian prime interest rate. Cashable in part or full at any time with interest paid if held 30 days or longer. Tier Rate $250,000 less than $1,000,000 4.95% $1,000,000 and over 5.20% *** Rates are applicable today and are subject to change. *** What you should know about the RBC Prime-Linked Cashable GIC: • The prime interest rate is a reference rate for determining interest rates on Canadian dollar commercial loans in Canada and is subject to change. Should the prime interest rate change during the term of your investment, the annual interest rate of this GIC is automatically adjusted. • If the Royal Bank Prime decreases, this interest rate will also decrease. • No interest is paid if cashed within 29 days and a $25.00 administration fee will apply. • The current rate of 5.20% applies to amounts of $1MM - $50MM. Lesser amounts will pay lesser interest rates. • Should any partial redemptions be made to this GIC, the interest rate will reduce (depending on which tier it falls into). Interest Paid Semi-Annually or at Maturity [%] Term To Maturity $5,000 to $49,999.99 $50,000 to $99,999.99 $100,000 to $249,999.99 $250,000 to $999,999.99 $1,000,000 and over 1 year term 4.75 4.75 4.75 4.95 5.20 *** Rates are applicable today and are subject to change. *** P a g e | 2 This document contains confidential, proprietary, and trade secret information of RBC Royal Bank of Canada and may not be disclosed to third parties or duplicated without the prior written consent of RBC Royal Bank of Canada. 2) Non-Redeemable GIC: This GIC offers a fixed rate of interest for a specific term, with both principal and interest payments guaranteed. There are a wide choice of terms and options. Funds are not available prior to the maturity date. Term RBC Non-Redeemable Guaranteed Investment Certificate Rate 30 days 5.12% 60 days 5.18% 90 days 5.19% 120 days 5.18% 150 days 5.17% 180 days 5.16% 270 days 5.02% *** Rates are applicable today and are subject to change. ***