Key Highlights:
- Public Works Operations finished 2019 with a surplus of $437,041 for salary, wage, and fringe benefits due to vacancies and retirements causing gapping throughout the year.
- Offsetting the salary surplus for the year is a deficit of ($245,966) for contracted services required to perform sewer maintenance and repairs in the Maintenance Division.
- The Maintenance division also finished 2019 with a surplus of $217,999 related to materials because of the increased contracted services performed.
- The Ontario One Call program had a deficit of ($81,195) for 2019 as the level of locates required continues to increase under this program.
- Lastly, Public Works realized a surplus of $100,855 for WSIB costs, and a deficit of ($42,764) related to vehicle and equipment utilization costs.
- The balance of the 2019 variance of ($31,621) is a deficit for the sum of all other immaterial line-by-line variances for the year.
Other Sewer Surcharge Related Expenses
Other Sewer Surcharge-related expenses are $3,541,151 better than planned. This is mainly due to Capital Expenditures which, in anticipation of the delayed implementation of the 2019 fixed and variable rates, were reduced. This is simply a timing difference applicable solely to 2019 and is entirely offset by the reduced Sewer Surcharge Revenues as noted below. Refunds and General Expenses, as well as EnWin administrative fee, are also better than budget with $484,152 and $187,998 in surpluses, respectively. Sewer Repair and Replacement costs partially offset the above surpluses with ($323,760) deficit.
Sewer Surcharge Revenue
Given the Sewer Surcharge fixed and variable rate changes approved in 2019 were not implemented until May 1st the Sewer Surcharge Revenues collected were ($3,632,173) lower than the full year’s annualized approved budget largely based on the timing of implementation of this change. This represents a (5.2%) variance to the $70.3 million revenue budget. These reduced revenues are entirely offset by the reduction in expenditures as noted above.