VARIANCE DESCRIPTION

The total departmental year-end variance is projected to be approximately: $539,000 Surplus

Parks Division

The Parks division is reporting an estimated deficit of ($115,000) for the year ended December 31st, 2020 that represents a 0.6% variance from the annual operating budget. The Parks department was able to mitigate some of the negative impact of the pandemic with reductions seasonal, temporary staffing, and overtime expenditures. In addition, there were cost savings achieved from salary gapping as a result of the delay in filling positions that were vacant for permanent staffing in various divisions across the Department. The Department throughout the year worked diligently to mitigate expenditures in order to stay within the approved Council approved budget for 2020. The following budget variances are detailed for the year within the department.

Revenue Reductions ($179,000) Deficit

As a result of COVID-19 pandemic the Parks department experienced lost revenues for services related to park use and services provided to the public related to rental space and various user fees involving parkland. As required by provincial legislation, restrictions were mandated at the commencement of pandemic and Parks administration responded to adjust the provision of services which is estimated to result in reduced revenues of ($110,000). In addition as s result of the COVID-19 pandemic Parks administration closed the Ojibway nature centre which eliminated lease rentals for rooms, concessions and programming related to user fees. The revenues lost from the services no longer provided at the Ojibway nature centre amounted to ($69,000).

Cost Recovery Reductions ($3,000) Deficit

The commencement of the COVID-19 pandemic related to the Parks department to reduce services to vacant and transitional properties maintained by Parks Operations as result of lower staffing compliments available to maintain parkland throughout the City. During the spring periods the student program was delayed which had a significant impact on the resources available to maintain parks and as a result staffing was reallocated to core parkland maintenance. The reduction in services for maintenance related to vacant properties is expected to yield a deficit of ($74,000) as expenditures are recovered from the Real Estate division or capital reserve funding. In addition there has been a reduction in recoverable work charged to other divisions from Parks departments as staff have been redeployed to meet high priority needs and the costs recovery reduction is estimated to be ($47,000)

The delay in capital work that resulted in the spring from the COVID-19 pandemic also resulted in a reduction if salary recoveries from the Parks Development division that apply charges to capital projects. The deficit that is resulting in reduction of salary recovery from capital work is estimated to be ($165,000) for the delay of capital during the spring periods.

There have been some offsetting positive variances in costs recoveries in the Horticulture and Forestry divisions which have yielded a surplus of $205,000. The Forestry tree maintenance program has yielded additional recovery of salaries for Local 82 and management staff working to reduce the backlog of work order and offset reduced cost recoveries in this category.

At the commencement of the COVID-19 pandemic in March, Parks administration elected to delay the student lottery program as provincial regulations were being mandated and changes were evolving on a weekly basis. In addition seasonal and part-time staff were notified of temporary lay offs in the spring periods. The delay and reduction of temporary staffing had yielded an estimated savings in the year of $167,000. This savings also included temporary employees related to the Ojibway nature centre that provide programming to school groups and the public. The temporary salary savings has been reduced by additional requirement to backfill a position with temporary staffing for an employee in Parks administration division working on the Work Force Management payroll system implementation which has resulted in an estimated annual deficit of ($89,000).