Wohkinp foh YOU

REPORT Meeting Date: May 12, 201 1

Regional Council

DATE: March 28, 201 1

REPORT TITLE: 2010 SEMI-ANNUAL FINANCIAL REPORT -YEAR END (UNAUDITED)

FROM: Norma Trim, Chief Financial Officer and Commissioner of Corporate Services

RECOMMENDATION

That staff be authorized to implement the 2010 surplus management actions and administrative adjustments as outlined in the report of the Chief Financial Officer and Commissioner of Corporate Services titled "2010 Semi-Annual Financial Report - Year End (Unaudited)", dated March 28, 2011.

Current Operations 0 The 2010 Regionally Controlled Tax Supported surplus of $30.7 million was created by

changes in expenditures of $2.6 million and additional revenues of $28.1 million 0 Ontario Provincial Police (OPP) surplus was $0.8 million, and Peel Regional Police (PRP)

was $0.2 million 0 Recommended allocation of $30 million to reduce the capital shortfall of $463 million and

$0.7 million to maintain financial sustainability and $1.0 million to be allocated to Externally Funded Program reserves The 2010 Utility Rate program deficit was $4.0 million, due to rising electricity costs.

Capital Operations Capital spending is $837.4 million gross and $640.5 million net for the twelve months ended December 31,201 0

Reserve and Reserve Funds

DISCUSSION

1. CURRENT OPERATIONS The following report summarizes the financial status of Regional programs for the twelve months ended December 31, 2010 for Current Operations, Capital Operations, Reserves and Reserve Funds.

a) Tax Supported Programs As reported to Council in the June 30, "Semi-Annual Financial Reporf - June 2010" report, the "Strategic Plan V:2007 - 2010 Final Reporf and Forecasted 2010 Financial Close Out"

f i A - S t - 2 - March 28, 201 1 2010 SEMI-ANNUAL FINANCIAL REPORT -YEAR END (UNAUDITED)

report as well as during the 201 I Budget presentations financial results have benefited from a number of unanticipated variances to budget plan. After returning Working Fund Reserve draws which were not required, the 2010 Tax Supported operating surplus totaled $31.8 million including $0.8 million surplus for OPP and $0.2 million for PRP.. Appendix I provides a breakdown of the 2010 final financial results by program.

The June 30, 2010 Semi-Annual Financial Performance report to Council forecast a surplus of $17.8 million The Strategic Plan V Close Out report dated December 1, 2010 provided Council with an updated surplus forecast of $22.2 million . Subsequent to this report the Province announced a new funding formula and retroactive funding of $11.5 million for Ontario Works administration costs.

It is helpful to distinguish the drivers of the year end results between revenue and expenditure items as well as between anticipated and unanticipated.

With respect to revenues, 2010 was an unusual year. On a budget basis 26 per cent of expenditures are financed by transfers from senior levels of government. Ongoing advocacy efforts lead to additional provincial funding of $18.1 million. As reported to Council during the 201 1 Budget process additional provincial funding for fiscal 201 0 (Ontario Works Administration) was received in February 201 1. Of the additional provincial funding, $2.0 million was used to address the Seniors Dental waitlist ($1 . I million used in 2010 and $0.9 million carried forward to 201 I) , $1.4 million was set aside to phase in the tax impact of increasing the Community Grants program, and $2.3 million was returned to Best Start reserves. The 201 I Budget reflects the impact of base funding changes.

Additionally, Peel received higher than projected Supplementary Taxes ($7.5 million) in part attributable to an improving economy and in part due to process improvements at Municipal Property Assessment Corporation (MPAC). The 2011 Budget utilizes Area Municipal forecasts for Supplementary Taxes. When combined with additional Waste Diversion Ontario (WDO) grant of $2.5 million and increases in provincial funding the total unexpected revenue totals $28.1 million.

Of note, commodity prices increased more quickly in 201 0 following a significant decrease in 2008 resulting in an additional $5.4 million in recyclable revenue. The budget included a economic draw from Working Fund Reserves to offset the impact the recession had on recyclable revenues, resulting in no impact on year end surplus.

Expenditure variances may be affected by changes in the economy (i.e. Ontario Works benefit costs), weather patterns (roads maintenance costs), planning and service level assumptions (Energy From Waste shut down, staffing levels etc) as well as Council directed changes (i.e. Seniors Dental). Each year staff assess risks contained within corporate and program level planning assumptions. For example, the winter maintenance budget is based upon historical weather patterns over a number of years. In years with an above average number of winter events the program operates in deficit and is offset by working fund reserves. In a below average year, such as 2010, the program generates a surplus.

A summary of significant program variances are outlined below:

Transportation - surplus of $5.9 million driven primarily by savings of $3.8 million due to lower number of winter events. Additionally, the Accessible Transportation program generated an operating surplus of $1.6 million as a result of variances to planning assumptions regarding model mix and casual staffing. Assumptions used in developing the Accessible Transportation 201 1 Budget have been adjusted.

d"l&-@t - 3 - March 28, 201 1 2010 SEMI-ANNUAL FINANCIAL REPORT -YEAR END (UNAUDITED)

a Waste Management - budget came in on target due primarily to fuel savings of $2.0 million and savings in energy costs of $2.9 million due to the shut down of the Algonquin power. The program also benefited from additional WDO grants as noted above.

0 Ontario Works - a surplus of $14.5 million driven primarily by unanticipated Provincial funding of $11.5 million for Ontario Works administration, average caseload was within 0.2 per cent of budget while a positive variance in case mix ratio (e.g. more singles) lead to savings of $1.4 million.

0 Social Housing - surplus of $1.5 million was primarily attributable to lower mortgage costs as interest rates continue to be at historical lows. The 2011 Budget incorporated a $1.0 million reduction for mortgage costs.

Long Term Care - operationally the program was on budget. A total of $2.6 million was set aside to address outstanding labour negotiation issues.

Paramedic Services - a surplus of $4.2 million was driven by unanticipated subsidy of $1.9 million and a change in the Paramedic staff coverage assumptions used to develop the 2010 budget in an additional $2.3 million. The Paramedic Services 201 1 Budget recognizes the new staff coverage assumptions and therefore includes a net reduction of 2.3 per cent.

Further, Council authorized the acquisition of 7120 Hurontario with 2010 operating impact of $1.3 million absorbed within the approved budget. This new facility will replace existing leases resulting in a $20 million return on investment (ROI) over 20 years.

In summary, final 2010 financial results total a $30.7 million surplus from Regionally Controlled Tax Supported Programs comprised of $28.1 million unanticipated revenues and $2.6 million in expenditure changes.

b) Utility Rate Supported Programs The Strategic Plan V Close Out report dated December 1, 2010 forecast a deficit of $8,5 million in the Utility Rate Programs. Changes in the fourth quarter due primarily to lower contractor costs, and a one-time salary credit from Ontario Clean Water Agency (OCWA) resulted in a final 2010 deficit of $4.0 million in the Utility Rate Programs. The deficit is primarily due to rising electricity costs as rates increased by 34 per cent, coupled with lower water consumption and lower operating costs.

c) OutputslOutcomes As part of the yearly budget development each of the Region Controlled programs identifies a number of outputs and outcomes that will be measured to track program deliverables. Appendix II provides the status of these measures for the twelve months ended December 31, 201 0.

These measures can provide the rationale or reasons affecting financial results. This can be seen in a number of Peel's program areas;

Unscheduled 25 week shutdown of the Energy from Waste Facility (EFW) resulted in a lower cost for waste management per household Fewer "snow events" resulted in lower winter maintenance costs of roads

fld-bL - 4 - March 28,201 1 2010 SEMI-ANNUAL FINANCIAL REPORT - YEAR END (UNAUDITED)

Discontinuation of the community bus and lower than expected growth in dialysis and Passenger Assistance programs (PAP) lead to a lower than expected number of (non-TransHelp) Accessible trips Monthly social assistance benefit cost per case was 3.7 per cent lower than budgeted

d) Surplus Management In accordance with the Financial Control By-law, the Chief Administrative Officer and the Chief Financial Officer and Commissioner of Corporate Services are authorized to carry out the necessary surplus management actions in order to stabilize the year-end fiscal position and future tax and utility rates. In accordance with the by-law, a summary of the surplus management transactions, including the contributions to reserve accounts which were used to offset the $31.8 million property tax supported surplus and the $4.0 million utility rate deficit, is set out in Appendix Ill.

Staff recommends the allocation of $30 million of the tax surplus to help reduce the capital shortfall of $463 million as identified to Council during the 201 1 Budget deliberation.

Staff also recommends the allocation of $0.7 million to the Insurance Stabilization reserve to mitigate future pressures.

e) Write-offs Accounts Receivable Policy F40-03 gives the Chief Financial Officer the authority to approve the write-off of Water and Sewer billings and General Receivable billings. Presented below are the write-off transactions for the period ended December 31, 201 0.

Write-off Balance in Allowance Account

General Receivables $ 23,423.95

Water & Wastewater Billings $ 180,904.40 $ 186,550.43

The annual budget incorporates an estimate of anticipated write-offs which are charged to an "Allowance for Doubtful accounts". Write-offs are only recorded when all means of collection have been exhausted. Write-offs are well within budgeted estimates, with positive balances remaining in the Allowance for Doubtful accounts.

f) 2011 Outlook Tax Supported Programs: As noted earlier, the 2010 surplus was primarily attributable to unanticipated revenue. Changes in provincial funding were incorporated in the development of the 2011 Budget. Further, 2011 provincial grants are not fully known at this time. As announcements are made, staff will inform Council of the financial impact to Peel.

In developing the 201 1 Budget for Transportation and Paramedic Services assumptions were adjusted to better reflect the program drivers as seen in 2010.

During the 201 I Budget process Council made available additional funding to reduce the significant waitlist for affordable housing. Staff will develop options for Council to ensure best use of this investment over the long term. Development of appropriate options and implementing strategies will take time and as such, it is unlikely the full base funding increase of $13.3 million will be fully utilized in 201 1. Council may wish to place unspent funds into reserves to enhance long term financial sustainability of the Housing program.

H A - b l - 5 - March 28, 201 1 2010 SEMI-ANNUAL FINANCIAL REPORT - YEAR END (UNAUDITED)

Utility Rate Supported Programs: One of the major contributors to the overall 2010 utility rate deficit was rising electricity costs. This is expected to continue into 201 1 and accounts for about one half of the 201 1 Utility Rate of 9.1 per cent increase or 4.5 per cent. Barring unusual summer weather or other unforeseen circumstances the 201 1 operating results will be consistent with budget assumptions.

CAPITAL OPERATIONS

a) Overview As of December 31, 2010, there were 1,177 active projects. Gross expenditures for the twelve months ending December 31, 2010 were $837.4 million which represents 114 per cent of the revised 201 0 cash flow forecast.

The following chart demonstrates the capital spending trends over the past several years. The gross capital spending in 2010 as presented in Appendix IV is significantly higher than that of previous years reflecting approved capital spending for growth related works, Infrastructure Stimulus Funding and the acquisition of the 7120 Hurontario facility.

Gross Capital Expenditure January- December 2005 - 2010

2005 2006 2007 2008 2009

Year

The information below provides a continuity statement of capital operations from December 31, 2009 to December 31, 2010. It includes the addition of the 2010 Budget, any in-year changes, and closeouts to arrive at the gross carry forward balance of Capital Works in Process.

Carry Forward Balance December 31,2009 Approved 201 0 Capital Budget Total Available Capital In-Year Budget Changes and Closeouts YTD Spending Carry Forward Balance December 31,2010

$ Millions $2,062

522 $2,584

156 (837)

$1,903

HA-da - 6 - March 28, 201 1 2010 SEMI-ANNUAL FINANCIAL REPORT - YEAR END (UNAUDITED)

The carry forward balance of capital works in process is in line with previous years; however expenditures for the same twelve month period in 2010 are approximately 88 per cent higher than the average for the last five years.

b) Unfunded Liability As of December 31, 2010 Peel has an outstanding liability to GO Transit of $35.2 million, which includes amounts for the 2007, 2008, 2009 fiscal years and the 2010 allocation up to December 31 2010. This represents an unfinanced liability due to Peel Regional Council's decision to limit funding for GO Transit to the growth capital plan funded through development charges.

c) Envelope Funding In 2010, the Pavement Envelope Pilot was initiated using capital cost centre 10-4600. A budget amount of $10 million dollars, 100 per cent funded from the Capital Finance Stabilization Reserve, was approved by Council. During the year, funds were redeployed to eight pavement projects which would have otherwise required separate reports to Council. The funding envelope allowed for timely project funding and facilitated efficient implementation of the resurfacing program while reducing workload.

As this was a pilot project and process, the activity related to this master project and all subsequent sub projects was to be reported back to Council. The details related to the activity for this project are provided in Appendix V.

3. RESERVES AND RESERVE FUNDS

a) Highlights

- - . . . . . . . . . . - . - I - - I I \ ---, I \ 7 - - ---, I \ 2 - - - - - I I Balance after Commitments 1 641.3 7.5 1 (1,230.8) 1 (582.0) 1 Balance before Commitments 1 1,202.6 1 18.3

As per the Regional Financial Control By-law 45-2004; "Reserve means the unrestricted accumulation, at the discretion of Council, of appropriations from net revenues. Reserves include Working Funds, Capital Financing, Capital Construction and Infrastructure Replacement" and "Reserve Fund means the accumulation of appropriations from net revenues for purposes which are restricted by law or by the direction of Council contained in the by-law establishing the Reserve Fund".

(229.0) 1 991.9

As in previous years, reserves continue to play an integral role in managing the Region's diverse current and capital programs. Most programs use reserves for financing in order to avoid debt financing and to minimize annual tax and utility rate impacts.

Commitments 1 (561.3) 1 (10.8) 1 (1.001.8) 1 (1.573.9)

While the overall balance of the Region's Reserves and Reserve Fund portfolio before commitments is positive, the DC reserve funds are in a deficit position of $229 million as of December 31, 2010. The study that supported the 2007 Development Charge By-law recognized that the Development Charge Reserve balances would be in a deficit position before the next update and the development charge rate set at that time included the debt financing costs. As part of the funding strategy it is anticipated that debt will continue to be issued until such time DC reserves are able to sustain growth related infrastructure. Staff are starting to prepare for the DC background study to update the current DC By-law. This update will establish a new by-law with adjusted rates that include the cost to service any debt.

Ha-di - 7 - March 28,201 1 2010 SEMI-ANNUAL FINANCIAL REPORT - YEAR END (UNAUDITED)

b) Debt Appendix VI provides a more detailed breakdown of fund balances by program and type while Appendix VII focuses on year-to-date activity. The majority of the reserves are committed to finance the 201 0 - 201 9 Ten-Year Capital Plan of $4.8 billion.

As highlighted in Appendix VII and above, reserves are underfunded by $1.2 billion. In 2010 Peel issued debt totaling $310 million to cash flow development charges and finance the acquisition of 7120 Hurontario facility (includes $5.4 million issued on behalf of the Town of Caledon). Staff will be bringing a report to Council in summer 2011 to outline the debt strategy to address the underfunding.

4. FINANCIAL CONTROL BY-LAW (FCBL) Provided below are the details of the Financial Control By-law requirements that are currently tracked and recorded.

Authorization to Increase Project Commitments Beyond Originally Approved Budget The Financial Control By-law requires that the Semi-annual Financial report discloses the activity related to all budget adjustments made to previously approved capital projects which are the lower of 10 per cent of the Council approved budget or $250 thousand. The requests for the 12 months ended December 31, 2010 total $294 thousand. These requests are presented in Appendix Vlll with an activity summary for the 12 months. Projects requiring budget increases beyond these parameters require Council reports.

Closed Capital Projects During the 12 month period ended December 31, 2010, 238 projects were closed. As a result of these closures, $67 million was returned to reserves and reserve funds for those projects. The chart below displays results broken down by tax rate and utility rate funding sources.

Redeployments Redeployments are processed to facilitate effective management of various programs and projects. In order to better manage existing projects, 57 redeployments were processed for the capital budget during the twelve months ended December 31, 2010, The majority of these adjustments involved the separation of large projects into smaller, more specific projects (40 per cent) and merging of projects for tendering purposes (30 per cent). The remainder of the activity was divided between the movement of dollars from unallocated projects (16 per cent) and Treasurer approved redeployment between capital projects within the same division (14 percent).

Reserve and Reserve Fund Changes Section 4 of the Financial Control By-law requires Council authority to create new Sub Reserves, to transfer funds between Sub Reserves for purposes of reclassification and to

HA-42 - 8 - March 28, 201 1 2010 SEMI-ANNUAL FINANCIAL REPORT - YEAR END (UNAUDITED)

transfer reserve balances between reserves. Presented in Appendix IX is the activity related to these transactions for the twelve months ended December 31,201 0.

Unallocated Capital Financing The Financial Control By-law Section 3(9 iii requires that the financial report discloses the activity and available balances for the unallocated capital projects. Appendix X provides Council with a summary for the period ended December 31,201 0.

Working Fund Balance Requirements The Financial Control By-law requires that Working Fund balances for both the Tax Supported and Utility Rate Supported Reserves are maintained within 5 to 10 per cent of the operating budget. Maintaining these funds at required minimums provides Regional Council with an effective tool to balance risk with tax and utility rates.

Following proposed surplus management entries the balance of the tax supported working fund reserves as at December 31, 2010 is $154.8 million which represents approximately 11.2 per cent of the 201 1 operating budget, $1 6 million above the maximum ratio of 10 per cent FCBL requirement, with Utility Rate supported reserves at the minimum requirement of 5.0 per cent of the 201 1 total budgeted expenditures.

5. ADMINISTRATIVE ADJUSTMENTS

In accordance with the Financial Control By-law and the Purchasing By-law, staff are required to report to Council any transactions that change budgets, affect transfers to and from reserves and disclose purchasing decisions. Presented below are transactions for the six month period ended December 31,201 0.

Budget Changes: o The 2011 Peel Regional Police 10-year Capital Plan totaling $271.8 million includes a

capital project in 2015, Digital Recording (11-8270), totaling $1.5 million to replace the interview room equipment. It has become necessary to bring this project forward to 2011 to enable staff to commence the replacement of the existing interview room equipment and install a new interview system that will enable the central recording and storage of interviews.

o The budget for Capital project 00-4020 for Highway 410 Extension (resolution #1999- 631) within the Transportation capital portfolio has been increased by $4,173,439 to recognize funding being provided from the Ministry of Transportation of Ontario (MTO) and Caledon for additional works. The funding has already been received from MTO.

CONCLUSION

In summary, the Region of Peel's overall surplus position represents a variance of less than one per cent on a gross budget of $1.6 billion. The 2010 surplus was primarily related to uncontrollable drivers as outlined in this report. The surplus management activities support the organization's overall fiscal stability and sustainability.

March 28, 201 1 HA-bz-9-

2010 SEMI-ANNUAL FINANCIAL REPORT - YEAR END (UNAUDITED)

Norma Trim Chief Financial Officer and Commissioner of Corporate Services

Approved for Submission:

D. Szwarc, Chief Administrative Officer

For further information regarding this report, please contact Elayne Thompson at extension 4536 or via email at elayne.thompson@pee/region.ca

Authored By: Elayne Thompson and Christine Banks

c. Legislative Services

SEMI-ANNUAL FINANCIAL REPORT - YEAR END 2010 r\cr14bz-/8 Regional Municipality of Peel

Statement of Net Expenditures ($'000) For the Year Ended December 31,2010

APPENDIX I

2010 Actuals Revised Prior to Variance Budget Surplus Mgt. (Over)/Under

Health Services

Paramedic Services

Health Admin Services Subtotal Health Services

Corporate Services Employee & Business Services Executive Office, CIO, SIP, Council

Internal Support Services

Total Region Controlled Programs

Region Financed External Organizations

Police Services Peel Regional Police Ontario Provincial Police Subtotal Police Services

onservation Authorities ntario Disability Support Payment ssessment Services

Summary of Results by Funding Source $000'~ Tax Supported $ 31,768 Utility Rate Supported $ (4,027)

Total Surplus allocation $ 27,741

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010

OUTPUTSIOUTCOMES Hh-6 2 - / I

APPENDIX II

ow up with the Region if voice

a surplus of $5.9 million as a result of the Energy from Waste (EFW) Facility unscheduled shutdown, lower then budgeted fuel index, higher then budget grant funds for

Cost of Community Recycling Centres (CRCs) per Vehicle Trip $29 $25.43

Waste Diversion Ontario (WDO) for Blue Box program and seasonal low regarding yard waste. The 201 1 target is based on a projected increase of I .O% in households and an increase in net budget of $5.6 million the net effect is $214 per household. 2010 cost of CRCs per vehicle trip target is $29; the cost per trip is $25.43. The actual cost for 201 0 for CRCs had a $1 .I million surplus due to a net increase in WDO grant funding for Municipal Hazardous and Special Waste(MSHW) and an increase over budget for drop off fees. The vehicle trips remained on target with a total 335,159 trips for 2010. No major increase to CRC operations due to no new programs being introduced in 201 1 the same vehicle flow in 2010 is expected in 201 1 with a target of $29.

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010 f i4-6 2 -/2

APPENDIX II

OUTPUTSIOUTCOMES

construction activities due to economic conditions.

I I I I I

SEMI-ANNUAL FINANCIAL REPORT - YEAR END 2010

OUTPUTSIOUTCOMES

APPENDIX II

umber of Early Literacy Workshops held

Occupancy rate for Regionally operated child care centres

Number of applicants awaiting subsidized child care

Child care agency operational reviews completed

Number of volunteer placements

384

96%

5,000

300

443

234

96%

2,420

274

630

The number is below target because one of the two Early Literacy Specialist was on medical leave during the early part of the year. This measure fluctuates from quarter to quarter; but a slight increase in the 4th quarter brought the occupancy rate back to the 2010 target. The number of applicants waiting for subsidized child care was less than anticipated because we exceeded placements throughout the year.

Visits were below target for the year due to required training of a new POS Analyst and a shift in priorities for the analyst due to implementation of Full Day Kindergarten.

The number of volunteers was higher then expect resulting in 187 volunteers above target. This includes volunteers for the Parent Council, Bin collating and volunteers in the LPC.

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010

OUTPUTSIOUTCOMES

APPENDIX II

resulting in a decrease in appeals. The % of cases

housing is reducing the % of victims of family violence on

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010 f i ~ -6 2-/f

APPENDIX II

Falls Ratio (Resident Risk)

Client Satisfaction

0.17

8.2

Adult Day Services (ADS)

0.16

8.3

Performance was better than target as a result falls prevention activities.

On target. On a satisfaction index of 10, client satisfaction with the centre as a place to live was 8.3.

Adult Day Service Cost per Unit of Service was higher than the target as a result of the new Aging at Home programs that were added in the latter half of this year and therefore not included in the development of the 2010 target.

Adult Day Service Resource Utilization Rate is lower than the 2010 Target as a result of lower enrolment at Malton Village in the Adult Day Program prior to the Aging at Home program being implemented. Following introduction of the program enhancements enrolment improved significantly.

On target. Annual satisfaction survey was completed by 73 clients.

ADS - Cost per Unit of Service

ADS - Resource Utilization Rate

ADS - Client Satisfaction

$106.23

97%

95%

Respite Care

$1 13.91

92%

94%

Respite - Cost Per Unit of Service

Respite - Resource Utilization Rate

$193.53

97%

Public Health

$1 93.53

100%

On target for the year.

Target represents the occupancy rate at which full funding is received and actuals reflect that the Respite bed was fully utilized in 2010.

Food Safety - Inspection Completion Rates High Risk Premises

Medium Risk Premises

Low Risk Premises

Overall anticipated rate

97%

98%

94%

97%

1 compliance inspection per premise per quarter

2 compliance inspections per premise per year

1 compliance inspection per premise per year

90% of all food premises receive requisite no. of compliance inspections

On target.

On target.

Student public health inspector assessments of low risk premises enabled higher than anticipated completion rate.

Overall above target since medium and low risk inspections make up 88% of total required compliance inspections and both were well above target.

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010

OUTPUTSIOUTCOMES

APPENDIX II

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010

OUTPUTSIOUTCOMES 8494-8 2-14 APPENDIX II

Real Property Asset Management Number of capital land transactions completed Number of real property and facility acquisition transactions completed

Per cent of Regional facilities that have had an energy audit

Number of Building Condition Assessments

Number of Capital Risk Assessments for 2010 capital planning

Capital Renewal - Residential - planned

Capital Renewal - Non Residential - Planned

Major Construction - Paramedic

Major Construction - LTC

Major Construction - Heritage

Major Construction - ETPS

MAP Construction Client feasibilities studies Affordable Housing construction completion

170

90

71 %

59

285

$14,000,000

$4,000,000

$16,500,000

$1,500,000

$5,000,000

$1,650,000

$500,000 10

230 Units

175

94

87%

34

235

$22,590,782

$3,100,000

$1,425,000

$1,030,000

$7,500,000

$1,700,000

$9,500,000 10

230

Exceeded Target

Exceeded Target

Submission of Final Audit Report is expected by April 201 1

The 25 buildings on the list were deferred to allow for the completion of renovationlconstruction activities at the various sites.

It was determined that the Public Works buildings at the properties managed by Ontario Clean Water Agency (OCWA) would not require the Capital Risk Analysis

Construction value increased after completing 2009 carryover projects, Social Housing Renovation and Retrofit Program (SHRRP) overflow and unscheduled projects.

Few major maintenance project has been deferred, to be included in the redevelopment of SuiteA Progress of the projects is behind forecast for the following reasons: -Winding Trail project construction start date postponed t~ l l March 201 1 due to winter. -Slow progress in Tomken Reporting station due to permit delay -Satellite station in Brampton-co-locate stalled pending settlement of law suit with consultant. -Difficulty in sourcing site for new satellite station. -Project roof replacement at Malton Village and Tall Pine is found to exceed the budget substantially and is waiting for further funding approval. -Huxley Hall renovation is behind schedule and will be in construction in 201 1. Scope of the work and hence construction value expanded to include tunnel and security upgrade Construction progress at 2 Copper is ahead of schedule, resulting in expedited cash flow. Project at 7120 Hurontario is included. Target Met. Target has been achieved at end of 2010 second quarter (John Street - 200 units completed June 30, 2010 and Peel Manor - 30 units for Seniors and Singles completed March 201 0

APPENDIX II SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010

OUTPUTSIOUTCOMES

Customer Contact Centre

Telephone & Email contacts in the Customer Contact Centre

Counter service contacts - Access Peel

Heritage

Number of visitors

Seniors Outreach (total individuals)

School Audience (total individuals)

Research enquiries (in person, phone, email, letter)

Executive, Council and Office of CIO & SIP

EMT's Satisfaction with execution and implementation of their priorities (annual metric) Per cent of managed versus unmanaged electronic information across the organization Intergovernmental Relations Advisory Committee's (IRAC) satisfaction with services provided (annual metric) Corporate Services

825,000

80,000

7,500

8,000

6,000

2,000

80%

5%

80%

855,963

74,423

1,625

8,670

5,550

3,272

N/A

5%

N/A

Target exceeded.

Target within normal range.

Reflects reduced attendance, no special events during Q1; Complex closed as of March 31,2010 Demand slightly higher than anticipated

Demand slightly lower than anticipated

Demand significantly higher than anticipated

No action required - base line to be set in Q1 of 201 1.

Keep on track with project execution - on track to achieve 2011 target (6%) as ended January 2011 with 5.21%. No action required - base line to be set with new committee in2011.

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010

OUTPUTSIOUTCOMES

APPENDIX II

G81G20 activity derailed planned expenditures.

On target

Numbers are lower to due election year meeting calendar.

Numbers are lower to due election year meeting calendar.

Numbers are lower to due election year meeting calendar.

Driver appears to be Ontario Works Caseload Yurther note in 2009 10,000 pgs were processed, in 2010 30,000 pgs (approx) were processed; also an increased number of complex economic requests (RFP, contracts, agreements)

24,100 Internal; 5,457 External -Target exceeded

95% of target met

Over target

Over target

Approaching 201 1 Census, some of the pages related to the previous Census years may not generate as much interest. Hence the YTD Actuals is under target. Over target

Land secured is higher than anticipated as leveraged funding was received that required project completion this year.

Performed better than target.

An Improvement from 68% in 2009 to 70% in 2010

The yield was slightly higher than forecast as interest rates rebounded from mid-year lows.

22

6

43

6,967

5,634

187

29,557

982

655

28,550

73,420

532

108.5 hectares

5.4%

70%

3.80%

Emergency Management Presentation &Training Sessions

Emergency Exercises *Maintain 2417 On-Call Response Capability

Number of CouncillCommittee (based upon 15 committees) meetings supported

Number of Council/Committee/Subcommittee Support Hours

Total number of Agendas Packaged

Number of Municipal Freedom of Information and Protection of Privacy Act requests

Hours of legal service - Internal and External

New legal matters to be dealt with

New potential claims under Management

Number of page views for all Peel Region Official Plan Review (PROPR) web pages

Number of page views for all Peel Data Centre web pages

Number of datalinformation requests fulfilled

Amount of Greenlands secured in hectares

Accounts Receivable - per cent of the total dollar value that exceeds 90 days Accounts Payable - per cent paid within 30 days

Treasury - rate of return on investment

60

6

130

8,967

9,000

120

23,741

1,033

615

28,000

75,000

430

20 hectares

8%

70%

3.5%

SEMI-ANNUAL FINANCIAL REPORT - YEAR END 2010 flA*d 2-26 Appendix Ill

2010 Summary of Proposed Surplus Management Entries

Status before Surplus Management Surplus/(Deficit)- Property Tax Supported Programs Surplus/(Deficit)- Water Program Surplus/(Deficit)- Wastewater Program Total SurpluslDeficit

I Allocation Details Tax Supported Allocations

External Agencies - WF Allocations ROO01 Cal Policing Cost Stab R1231 WF - PRP - General Total External Agency WF Allocations

Allocation to Capital and Specialty Reserves R0210 Cap - Fin Stab - Roads R0230 Cap - Fin Stab - Gen Govt R0235 Cap Fin Stab - Ambulance R1617 Ambulance Vehicle R1610 PW - ES Fleet Reserve R1901 Long Term Care - Buildings R1920 RPAM -Wellington Complex R1922 RPAM - Facility Major Maintenance R2311 IT - Client Computers R2316 HR - Systems R2328 EBS Infrastructure Replacement R0500 lnsur - Stab Region R1160 CCR - Housing New Development Total Allocation to Capital and Speciality Reserves

Total Proposed Tax Supported Allocations

Utility Rate Supported Allocations ROO10 Water Rate Stabilization $ (3,427,660) R0241 Cap Fin Stab -Water $ (2,464,384) ROO 12 Wastewater Rate Stabilization $ 1,680,312 R1610 PW - ES Fleet Reserve $ 185,000 Total Proposed Utility Rate Supported Allocations to WF $ (4,026,732) $ (4,026,732)

Surplusl(Deficit) allocated to Reserves

Status after Surplus Management $

* Includes allocation to Seniors Dental of $0.9 million and $1.4 million for Community Grants, as per Council direction.

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010 e&zwz / APPENDIX IV

Region of Peel Capital Expenditures

Financial Status By Program - December 2010 ($'000)

Region Controlled Programs:

Public Works

Waste Management Transportation Development Services Operations Support

Health Services: Long Term Care Paramedic Services Public Health

Human Services: Childrens' Services Housing Programs Ontario Works

Internal Support Services:

Region Controlled Programs Total:

External Organizations: Ontario Provincial Police GO Transit Peel Regional Police Conservation Authorities (Greenlands only) Hospitals

Total Region Financed External Organizations

Total Region

40,000 98,100

200 22,800

$ 510,500

13,900 23,000 2,200

$ 39,100

1,500 104,700

500 $ 106,700

$ 34,100

$ 690,400

7,490 0

32,752 1,463

0 $ 41,705

$ 732,105

6,393 117,868

29 8,017

$ 668,750

4,815 8,746

997 $ 14,558

1,112 50,662

44 $ 51,818

$ 64,197

$ 799,323

578 8,344

28,303 874

0 $ 38,099

$ 837,422

16% 120% 15% 35%

131%

35% 38% 45% 37%

74% 48% 9%

49%

188%

116%

8% 0%

86% 60% 0%

91%

114%

33,607 (19,768)

171 14,783

$ (158,250)

9,085 14,254

1,203 $ 24,542

388 54,038

456 $ 54,882

$ (30,097)

$ (108,923)

6,912

(8,344) 4,449

589

$ 3,606

$ (105,317)

6,261 105,009

29 7,724

$ 501,164

4,815 8,609

217 $ 13,641

1,112 26,856

(30) $ 27,938

$ 62,3 7 1

$ 605,114

578 8,344

25,550 874

$ 35,346

$ 640,460

SEMI-ANNUAL FINANCIAL REPORT- YEAR END 2010 Appendix V

2010 PAVEMENT ENVELOPE PILOT

The Pavement Envelope Pilot was initiated using capital cost centre 10-4600. A budget amount of $10 million dollars, 100 per cent CFSR funded, was approved by Council.

2010 PAVEMENT MANAGEMENT ENVELOPE REALLOCATIONS

2010 BUDGET APPROVAL FOR PILOT

10-4600 Jan110 Pavement Management (l3nvelope Funds) approved in 2010

FUNDING ALLOCATIONS

Balance Unspent

$'000

10-4615 Mar 22/10 Pavement Management $

Would have

required Council

approval

Project Total $'000

Funding Allocations

$'OOO Project

10-4662 Feb. 24/10 Hwy. 50 from Centennial Dr. to Old ChurchRd. $ 10-4662 June 13/10 Hwy. 50 from Centennial Dr. to Old ChurchRd. $

Actual Spent @

Dec 31/10 $'000

10-4663 Feb. 2411 0 Mayfield Rd. from Creditview Rd. to Winston Churchill B1 $ 10-4663 Mar 22/10 Mayfield Rd. from Creditview Rd. to Winston Churchill B1 $

Date

10-4664 Feb. 24/10 Finch Ave. from Hwy. 427 to Steeles Ave. $ 10-4664 May 12/10 Finch Ave. from Hwy. 427 to Steeles Ave. $

Project Name

10-4665 4ug. 25/10 Mayfield Rd. from Coleraine Dr. to PiUsworth Rd $

10-4666 Sept. 09/10 Micro surfacing Program $

10-4697 May 13/10 Forks of the Credit from McLarenRd to Hair Pin Turn $

TOTAL

The envelope funding process has enabled staff to ensure that the funding approved by Council for maintaining pavement can be used to obtain the maximum rehabilitations.

SEMI-ANNUAL FINANCIAL REPORT -YEAR END 2010 Appendix VI

Region of Peel Reserves & Reserve Fund Balance by Program ($'000)

As at December 31,2010

Program

Roads

Waste Management

PW Operation Support Tax

Regional Planning

Long Term Care

TransHelp

Children's Services

Public Health

Housing Accounts

Police - PRP

Police - OPP

Ontario Works

Conservation

GO Transit

Paramedic Services

Hospitals

Water

Wastewater

PW Operation Support Rate

Internal Support Services

Total

Reserve Funds

$ 5,332

201

(784) 2,766

15,124

508

4,379

818

6,573

1,155

1,362

335

1,353

(256,803)

6,188

824

$ (210,668)

Capital Construction

$ 80,954

133,530

1,838

(2,650)

2,414

(12,207)

5,979

2,106

29,337

17,354

96,948

158,398

94,783

$ 608,785

Total

$ 92,231

179,482

16,577

1,571

22,669

20,727

15,877

10,653

65,3 11

122,335

11,695

16,453

5,979

2,442

46,140

17,354

(143,372)

181,149

46,452

260,159

$ 991,885

Stabilization

$ 5,945

2,429

517

5,314

532

12,869

1,914

7,535

19,991

10,540

12,888

720

5,096

8,755

105,365

$ 200,409

Committed Balances

$ (325,795)

(27,881)

(12,344)

(1,944) (10,608)

(10,382)

(1,115)

(2,249) (92,241)

(25,413)

(6,958)

(626)

(1,354)

(21,687)

(2,922) (510,928)

(424,728)

(2,892)

(91,798)

$ (1,573,864)

Reserves

Vehicle and Equipment

Replacement

$ -

18,857

5,109

3,507

1,946

64,001

4,063

42,139

48,109

$ 187,730

Balance Available

$ (233,564)

151,601

4,233

(373) 12,061

10,345

14,763

8,404

(26,930)

96,922

4,737

15,828

4,625

2,442

24,453

14,432

(654,300)

(243,579)

43,560

168,361

$ (581,979)

Building Replacement

$ - 43,322

(2,280)

12,129

1,564

2,500

69,165

31,770

2,203

10,666

11,387

7,808

4,3 14

11,079

$ 205,629

SEMI-ANNUAL FINANCIAL REPORT - YEAR END 2010 Appendix VII

Region of Peel

Continuity Schedule of Reserves and Reserve Funds (%'000) As at December 31,2010

Balance January 1,2010

Contribution

Interest

Transfers and Other

Expenditures

Balance December 31,2010

Balances Committed

Balance Available December 31,2010

Capital Construction

$ 641,936

149,674

29,707

(212,533)

608,785

(455,271)

$ 153,514

Other Restricted

Funds

$ 14,042

37,414

703

3

(33,878)

18,283

(10,780)

$ 7,503

Building Replacement

$ 182,538

23,468

8,805

7,218

(16,401)

205,629

(49,386)

$ 156,243

DC Funds

$ (228,417 )

$ 345,025

$ (15,747 )

$

$ (329,812 )

$ (228,951 )

$ (1,001,788 )

$ (1,230,738 )

Stabilization

$ 202,336

9,257

6,920

(7,215

(10,889)

200,409

(8,193)

$ 192,216

Total

$ 986,261

595,634

38,358

5

(628,374)

991,885

(1,573,864)

$ (581,979)

Reserves

Vehicle and Equipment

Replacement

$ 173,826

30,797

7,969

(24,862)

187,730

(48,447)

$ 139,283

SEMI-ANNUAL FINANCIAL REPORT - YEAR END 2010 APPENDIX Vlll

Region of Peel Authorization to Commit a Project to Over Budget Expenditure ($'000)

For the Twelve Months Ended December 31,2010

Transhelp Vehicles - R1615

Wastewater - R0242

Note: These transactions meet the requirements of Clause 3.(n), Schedule C of the Financial Control By-law, within 10 % of approved budget

SEMI-ANNUAL FINANCIAL REPORT - YEAR END 2010 fid-62- 26 APPENDIX IX

Reserve and Resewe Fund Changes ($'000) For the Twelve Months Ended December 31,2010

portion of the reserve balance

2010 12 31 R3615 R3515 $ 124 Corp Serv-DC South Peel Wastewater -0BL Transfer Transfer related to DC By-law update

2010 12 31 R3625 R3525 $ 50 Corp Serv-DC Regional Road Wastewater-OBL Transfer Transfer related to DC By-law update

2010 12 31 R3630 R3530 $ 1 Corp Serv-DC Regional Road Water-OBL Transfer Transfer related to DC By-law update

2010 12 31 R1030 R1033 $ 28,041 Human Services Transfer To transfer actual borrowing costs to Chapelview project.

Total $ 35,688

Note: The activity reported on this schedule represents a series of administrative adjustments made to the Region's Reserve portfolio.

SEMI-ANNUAL FINANCIAL REPORT - YEAR END 2010

/"fA-gZ-2 3 Regional Municipality of Peel

Unallocated Capital Financing Project Status ($'000) As at December 31,2010

APPENDIX X

Balance at December 31,2009

20 10 Budget Allocation

Previous year's unallocated projects closed and funding returned

Less: Reallocations under $250,000 (approved under Treasurer Authority of Financial Control By-law 2004-45)

Less: Reallocations over $250,000 (approved by Council reports)

Balance at December 31,2010

(350)

$ 1,150

(50)

$ 1,450

(259)

$ 1,741