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HomeMy WebLinkAboutFinancial Statements 1996 9661 N'yrr2 0" O ""lo ovmAbg (111 05g1V J ] - kikif viz TOWNSHIP OF BAYHAM 1996 FINANCIAL REPORT INDEX PAGE Township of Bayham Auditors' Report 1 Treasurer's Report 2A-2B Consolidated Statement of Operations 3A-3B Consolidated Balance Sheet 4 Notes to the Consolidated Financial Statements 5A-5G Township of Bayham - Trust Funds Auditors' Report 6 Statement of Continuity 7 Balance Sheet 8 Notes to the Financial Statements 9 76oloAAof 64044. ::n Doane Raymond Chartered Accountants Canadian Member Firm of Grant Thornton International Auditors' Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Township of Bayham We have audited the consolidated balance sheet of the Corporation of the Township of Bayham as at December 31, 1996 and the consolidated statement of operations for the year then ended. These financial statements are the responsibility of the Township's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are fret: of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles uses and significant estimates made by management. as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Township as at December 31, 1996 and the results of its operations for the year then ended in accordance with the accounting principles disclosed in note 1 to the financial statements. Chartered Accountants Port Colborne, Ontario April 11, 1997 P.O.Box 336 Suite B 92 Charlotte Street Port Colborne Ontario L3K 5W1 Tel: (905)834-3651 (905)735-6000 Fax:(905)834-5095 2A Treasurer's Report The Township of Bayham has a surplus in the General Revenue Fund for the year ended December 31, 1996 of $13,451. This balance was reduced over the year by $790. The overall Municipality's equity balance at year end was $23,097 which represents an increase of$269,124 from 1995. The net working capital figure at year end was $620,497 up from $298,373 in 1995. Contributions to reserves totalled $53,000 and none was transferred out for use in capital projects. Transfers and revenues to reserve funds amounted to $22,521 (1995 - $19,474) which represents a 12.9% increase over 1995. Taxes and accounts receivable decreased from $343,638 in 1995 to $311,926 at the end of 1996. Taxes receivable represents 8.57% of the 1996 tax levy decreasing .58% from 1995. Long-term liabilities decreased during the year by $2,474 to a balance of $2,419 at year end. Revenues from taxation and other user charges increased $246,182 over the previous year resulting from a 1.27% increase in assessment and a 3.46% increase in the mill rate. The Township's portion of the increase in the mill rate for 1996 was 1.69%. Council and staff continued to work on ways of doing more with less and managed to keep current operation expenditures $45,488 under budget. General Government costs for current operations were $43,885 below budget for a 3.5% decrease from last year. Transportation services current operation expenditures came in $69,773 under budget while $53,752 more was spent over 1995's actual results. Capital expenditures came in under budget by $73,208 with a total of $268,142 for the current year compared to $1,108,860 for 1995. The water/sewage study for the Hamlets of Straffordville and Eden commenced in 1996. Major road construction undertaken during the year included the following roads: Eden Line, Tunnel Line, Godby Road and Hevenor Corner. The Road Department disposed of a dump truck and a bucket truck over the course of the year, replacing only the bucket truck for $23,300. Projects expected to be carried out in 1997 by the Road Department include Pressey Road, Alward Street, Centre Road and the installation of the White Culvert. The Road Department has budgeted for a new pickup truck to accommodate the additional responsibility of maintaining County Roads. 7owoduA aj Ellyitam ;`� 2B As always, Council and administrative staff are vigilant about the spending of Township moneys. No funds are committed unless the project is reviewed by Council and its Committees. To be approved, a project has to be consistent with the Township's overall objectives. The utmost care is taken to ensure funds are spent with due regard to economy, efficiency and effectiveness. The next twelve months will be a time of tumultuous change in the Township as we prepare and commence business in 1998 as a New Municipality amalgamated with the Villages of Port Burwell and Vienna. Not only will there be new municipal boundaries but also new legislative powers bestowed upon municipalities, a new assessment system and increased funding responsibilities. These massive changes will combine to make 1997 - 1998 a challenging time for the Township and the New Municipality. Council and Staff look forward to your input and information on the management of your Municipality, to help us successfully meet new challenges and take advantage of new opportunities. Lynn S. Buchner, CGA, AMCT(A) Administrator Treasurer 7aumedto eta#ItCPI 3A TOWNSHIP OF BAYHAM CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1996 ................................. .................................. Budget iiiiinliiMt*tarM Actual 1996 '1 '':<' < 1995 SOURCES OF FINANCING: $ ?< $ Taxation and user charges Residential and farm taxation 2,715,914 M]-:::2-49.3-00:: 2,562,514 Commercial, industrial and business taxation 373,490 4494 ';' 429,147 Taxation from other governments 7,300 7 :` 7,454 User charges 129,925 ` 5353#:: 153,502 Grants Province of Ontario 532,000 598Q1: 559,215 Other Investment income,penalties and interest on taxes 54,500 '''' ':70,6$5' 77,426 Other 26,800 €;23,44:x::. 20,282 .................................. ................................. .................................. Deduct: Amounts received or receivable for County and school boards(note 2) (2,072,172) i r( fl 7 997) (1,981,063) ................:....:..........:. ................................. .................................. ................................. .................................. ................................. .................................. ................................. .................................. ................................. .................................. ................................. .................................. ................................. .................................. ................................. Proceeds from the issue of long term liabilities - » iii 44,965 MUNICIPAL FUND BALANCES AT THE BEGINNING OF THE YEAR(note 7) To be offset(or to be recovered from)taxation 14,241 :iman'.4:447.4ii 145,683 Capital operations not yet permanently financed - 9 0(M : (42,050) Total financing available during the year 1,781,998 >; 1,7-56 9 t 1,977,075 The accompanying notes are an integral part of this financial statement 764,10aj Eayleast5 3B TOWNSHIP OF BAYHAM CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1996 Budget Actual Actual 1996 1996 1995 APPLIED TO: $ S $ Current operations(note 9) General government 340,525 296,640.` 307,440 Protection to persons and property 187,870 145,206 148,464 Transportation services 522,500 452,727 398,975 Environmental services 248,748 337,102 222,995 Health services 28,000 38,483 20,309 Social and family services 450 948 2,698 Recreation and cultural services 60,555 61,015 47,872 Planning and development 47,000 58,039 `' 60,279 1,435,648 1,390,160 1,209032 Capital General government 3,000 554 283,485 Protection to persons and property 5,000 3,920 434,158 Transportation services 143,350 161,458 297,010 Environmental services 190,000 101,323 38,876 Recreation and cultural services - 887 55,331 Planning and development - - 341,350 268,142 1,108,860 Net appropriations to(from) reserves and reserve funds(note 8) 5,000 T$,;5219 (94,790) MUNICIPAL FUND BALANCES AT THE END OF THE YEAR(note 7) To be used to offset taxation - 51,597^' 43,973 Capital operations not yet permanently financed - (28.5001' (290,000) Total applications during the year 1,781,998 1,756,920 1,977,075 The accompanying notes are an integral part of this financial statement 76.04440 4j VAgicei c 4 TOWNSHIP OF BAYHAM CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1996 Actual Actual 1996 1995 ASSETS $ $ Unrestricted Cash and investments 534,496 154,400 Taxes receivable 269,064 ' 268,318 Accounts receivable 42,862 75,320 Due from reserve funds - 12,500 Other current assets 6,246 8,499 852,668 " 519,037 Restricted Cash and investments 47,877 39,356 Due from(to) revenue fund 1,500 (12,500) 49,377 26,856 Capital outlay financed by long term liabilities and to be recovered in future years (note 1(b)(iv)) 2,419 4,893 904,464 550,786 LIABILITIES Temporary loans - Accounts payable and accrued liabilities 203,520 192,663 Due to reserve funds 1,500. Other current liabilities 28,001 232,171 220,664 Net long term liabilities(note 6) 2,419 4,893 FUND BALANCES AT THE END OF THE YEAR 234,590` 225,557 To be used to offset (or to be recovered from) taxation(note 7) 51,597 43,973 Capital operations not yet permanently financed(note 7) (28,500) (290,000) Reserves(note 8) 597,400 544,400 Reserve funds(note 8) 49,377 26,856 669,874 325,229 904;464 550,786 The accompanying notes are an integral part of this financial statement 7oe40e44 "D EA‘�tc ;; TOWNSHIP OF BAYHAM 5A NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 1. Accounting Policies The consolidated financial statements of the Township are the representation of management prepared in accordance with accounting policies prescribed for Ontario municipalities by the Ministry of Municipal Affairs and Housing. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgements. (a) Basis of Consolidation (i) These consolidated statements reflect the assets, liabilities, sources of expenditures of the revenue fund, capital fund, reserve funds and reserves and includes the activities of all committees of council and the following boards which are under the control of council: Bayham Recreation, Parks and Straffordville Community Centre Board Bayham West Cemetery Board Calton Cemetery Board Claus Cemetery Board Dobbie Cemetery Board Eden Cemetery Board Edison Pioneer Cemetery Board Firby Cemetery Board Guysboro Cemetery Board Light Cemetery Board Old Port Burwell Baptist Cemetery Board Smuck Cemetery Board Straffordville Cemetery Board (ii) Non-Consolidated Entities There are no non-consolidated entities. /Owadit f 4j 'aq h u h _ TOWNSHIP OF BAYHAM 5B NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 (iii) Accounting for County and School Board Transactions The taxation, other revenues, expenditures, assets and liabilities with respect to the operations of the school boards, and the County of Elgin are not reflected in the municipal fund balances of these financial statements. (iv) Trust funds and their related operations administered by the municipality are not consolidated, but are reported separately on the Trust Funds Statement of Continuity and Balance Sheet. (b) Basis of Accounting (i) Sources of financing and expenditures are reported on the accrual basis of accounting with the exception of principal and interest charges on long term liabilities which are charged against operations in the periods in which they are paid. The principal and interest charges are not accrued for the periods from the dates of the latest payments to the end of the financial year. (ii) The accrual basis of accounting recognizes revenues as they become available and measurable; expenditures are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. (iii) Fixed Assets The historical cost and accumulated depreciation for fixed assets are not recorded for municipal purposes. Fixed assets are reported as an expenditure on the Consolidated Statement of Operations in the year of acquisition. (iv) Capital Outlay to be Recovered in Future Years "Capital Outlay to be recovered in future years", which represents the outstanding principal portion of unmatured long term liabilities for municipal expenditures, is reported on the Consolidated Balance Sheet. ?atak4 Eft a‘ ectoaworp TOWNSHIP OF BAYHAM 5C NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 2. Operations of School Boards and the County of Elgin Further to note 1(a)(iii), the taxation, other revenues, expenditures and overlevies (underlevies) of the school boards and the County of Elgin are comprised of the following: School Boards County Taxation $ 1,480,444 $ 607,553 Requisitions 1,480,444 607,553 Overlevies for the year 0 0 Underlevies at the beginning of the year 0 0 Underlevies at the end of the year NIL NIL 3. Trust Funds Trust funds administered by the municipality amounting to $163,236 (1995 $ 141,506) have not been included in the Consolidated Balance Sheet nor have their operations been included in the Consolidated Statement of Operations. 4. Pension Agreements The municipality makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a multi-employer plan, on behalf of 13 members of its staff. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. The amount contributed to OMERS for 1996 was $ 20,579 (1995 $ 22,052) for current service and is included as an expenditure on the Consolidated Statement of Operations. TOWNSHIP OF BAYHAM 5D NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 5. Liability for Vested Sick Leave Benefits Under the sick leave benefit plan unused sick leave can no longer accumulate. The amount accumulated to the credit of each employee prior to this may be utilized as required from time to time for sickness. Upon termination, the employee is entitled to remuneration not exceeding one half of the number of days remaining to their credit and cannot exceed one half year's earnings based on the rate of remuneration at the time of termination. The liability for these accumulated days, to the extent that they have vested amounted to $ 29,676 (1995 $ 39,707) at the end of the year. There are no anticipated payments over the next five years to the employees who are eligible to retire. 6. Net Long Term Liabilities 1996 1995 (a) The balance of the net long term liabilities reported on the Consolidated Balance Sheet is made up of the following: • Total long term liabilities incurred by the municipality and outstanding at the end of the year amount to $ 125,359 $ 137,910 • Of the long term liabilities shown above, the responsibility for payment of principal • and interest charges for tile drainage loans has been assumed by individuals. At the end of the year, the outstanding principal amount of this liability is (122,940) (133,017) • Net long term liabilities at the end of the year $ 2,419 $ 4,893 (b) Of the net long term liabilities reported in (a) of this note $ 2,419 in principal payments are payable from 1996 to 1999. All of these payments are recoverable from benefitting landowners. 7owad rii a‘ va.0.4-0 TOWNSHIP OF BAYHAM 5E NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 (c) The long term liabilities in (a) issued in the name of the municipality have received approval of the Ontario Municipal Board for those approved on or before December 31, 1992. Those approved after January 1, 1993 have been approved by by-law. The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. (d) The municipality is contingently liable for long term liabilities with respect to water main extension loan and to tile drainage loans. The total amount outstanding as at December 31, 1996 is $ 122,940 (1995 $ 133,017) and is not recorded on the Consolidated Balance Sheet. 7. Municipal Fund Balances at the End of the Year (a) The balances on the Consolidated Statement of Operations of municipal equity (or deficit) of $ 23,097 (1995 $ (246,027)) at the end of the year are comprised of the following: 1996 1995 • for general reduction (increase) of taxation $ 13,451 $ 14,241 • for benefiting landowners related to special charges and special areas (15,962) (20,136) • Cemetery Boards and accumulated net revenue 54,108 49,868 51,597 43,973 • acquisition of fixed assets to be financed from the proceeds of long term liabilities (28,500) (290,000) $ 23,097 $ (246,027) (b) Approval of the Ontario Municipal Board has been obtained for the pending issue of long term liabilities and commitments to be financed by revenues beyond the term of council and approved on or before December 31, 1992. Those approved after January 1, 1993 have been approved by by-law. The principal and interest payments required to service these pending issues and commitments are within the debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. 7 4t641/440t CP TOWNSHIP OF BAYHAM 5F CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 8. Reserves and Reserve Funds The total balances of reserves and reserve funds of$ 646,777 (1995 $ 571,256) is made up of the following: 1996 1995 Reserves set aside for specific purpose by Council • for computer equipment $ 13,000 $ 0 • for water works 15,000 15,000 • for fire capital expenditure 45,000 20,000 • for acquisition of fixed assets 224,400 219,400 • for working capital 300,000 290,000 Total reserves 597,400 544,400 Reserve funds set aside for specific purpose by legislation, regulation or agreement • for Environmental improvements 4,007 0 • for Water capital 3,004 0 • for Eden improvements 12,820 12,180 • for parks and recreation purposes 29,546 14,676 Total reserve funds 49,377 26,856 Total $ 646,777 $ 571,256 9. Charges for Net Long Term Liabilities Total charges for the year for net long term liabilities which are reported on the Consolidated Statement of Operations are as follows: 1996 1995 Principal payments $ 2,474 $ 2,266 Interest 421 630 $ 2,895 $ 2,896 ?au« aj bC`ayiiast itD TOWNSHIP OF BAYHAM 5G CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 9. Charges for Net Long Term Liabilities - continued The charges for long term liabilities assumed by individuals in the case of tile drainage loans are not reflected in these statements. 10. Contractual Obligation - Ministry of the Environment and Energy In accordance with a service agreement entered into by the municipality with the Ministry of the Environment and Energy, the existing water system in a small portion of the municipality is owned and operated by the Ministry. The municipality is obligated to meet all operating costs and repay the long term liabilities related to this project. Included in the Consolidated Statement of Operations are the 1996 charges from the Ministry - water $ 1,374. The Consolidated Balance Sheet does not reflect any assets or liabilities pertaining to the water system except to the extent of service charges due to the Ministry. Information received from the Ministry as at March 27, 1997, indicates the following: Accumulated net 1996 debt Total outstanding surplus (deficit) charges long term liabilities Water System ($2,262) $ 879 $ 7,743 The operating surplus and long term liabilities indicated above are not reflected in the accompanying financial statements. 7oeva o4Vag/0m to 7 TOWNSHIP OF BAYHAM TRUST FUNDS STATEMENT OF CONTINUITY FOR THE YEAR ENDED DECEMBER 31, 1996 Cemeteries Care and O.H.R.P. Total Maint Fund Funds $ $ $ Balance at beginning of the year 141,506 131,674 9.832 Receipts From cemetery boards 12,252 12,252 0 Interest earned 9,478 8,807 671 From Township general fund 0' 0 0 21.730 21,059 671 Expenditures To cemetery boards for maintenance 0 0 0 Loan forgiven 0 0 0 Loss on investment 0` 0 0 To Province of Ontario 0 0 0 0 0 0 Balance at end of the year 163,236 152,733 10,503 The accompanying notes are an integral part of this financial statement 76044iect a e 8 TOWNSHIP OF BAYHAM TRUST FUNDS BALANCE SHEET AS AT DECEMBER 31, 1996 Cemeteries Care and O.H.R.P. Total Maint Fund Funds $ $ $ Assets Cash and term deposits 94,731 94,731 0 Receivables 14,013 9,902 4,111 Inv Township of Bayham debentures Long term loans receivable 48,630 48,630 0 6,392 0 6,392 163,764 153263 10,503 Liabilities Payables 530 530 0 Balance - trust capital 163,236 152,733 10,503 163,766` 153,263 10,503 'The accompanying notes are an integral part of this financial statement TOWNSHIP OF BAYHAM 9 TRUST FUNDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 1. Accounting Policies Basis of Accounting Capital receipts and income are reported on the cash basis of accounting. Expenditures are reported on the cash basis of accounting with the exception of administrative expenses which are reported on the accrual basis of accounting, which recognizes expenditures as they are incurred and measurable as a result of the receipt of goods or services and the creation of a legal obligation to pay. 2. Investments The total for investments by the trust funds of $ 48,630 (1995 $ 49,858) reported on the Balance Sheet at cost, have a market value of $48,630 (1995 $ 49,858) at the end of the year. 3. Ontario Home Renewal Program The Ontario Home Renewal Program was established by the Ontario Ministry of Housing in 1973 to provide grants for municipalities to make loans to assist owner occupants to repair, rehabilitate and improve their homes to local property standards. Individual loans are limited to $ 7,500 of which the maximum forgivable portion is $4,000. Ontario Home Renewal Program loans receivable at December 31, 1996 comprise repayable loans of $ 6,392 (1995 $ 6,705) and forgivable loans of$ Nil (1995 NIL). Loan forgiveness is earned and recorded at a rate of up to $ 600 per year of continued ownership and occupancy. In the event of the sale or lease of the home or in the event of the homeowner ceasing to occupy the home, the balances of the repayable loan and the unearned forgivable loan immediately become due and payable by the homeowner. 70(4404 aj Eayasu :fi