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HomeMy WebLinkAboutFinancial Statements 1997 ha_ 1 9 • eA Y.H A 1 e7au:�r44 Fa /997 icuacu,iae ,fie TOWNSHIP OF BAYHAM 1997 FINANCIAL REPORT INDEX PAGE Township of Bayham Auditors' Report 1 Treasurer's Report 2A 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 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, 1997 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 free 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 used 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, 1997 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. , ..1-"e-tel 4 /e2---.,-1 Chartered Accountants Port Colborne, Ontario April 14, 1998 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, 1997 of $165,120. This balance was increased over the year by $151,699. The overall Municipality's equity balance at year was $153,206 which represents an increase of $130,109 from 1996. The surplus also includes $56,158 in amalgamation expenditures that were considered in the budget. The net working capital figure at year end was $715,706 up from $620,497 in 1996. Contributions to reserves totalled $115,230 and $163,630 was transferred out for use in operations and capital projects. Transfers and revenues to reserve funds amounted to$21,291 (1996-$22,521). Taxes and accounts receivable increased from $311,926 in 1996 to $454,266 at the end of 1997. Taxes receivable represents 7.8% of the 1997 tax levy, down from 8.57% in 1996. Long-term liabilities increased during the year by $2,431 to a balance of $4,850 at year end as a result of issuing a drainage debenture in 1996 for the Corinth Drain. Revenues from taxation and other user charges increased $160,309 over the previous year as a result of a 2.1% increase in assessment and a 2.26% increase in the mill rate. The Township's portion of the increase in the mill rate for 1997 was 2.66%. Council and staff continued to work on ways of doing more with less and managed to keep transportation services current operation expenditures $23,844 under budget for the year, and environmental services at $15,912 below budget. Capital expenditures came in under budget by $113,901 with a total of $329,099 for the current year compared to $268,142 for 1996. The water/sewage study for the Hamlets of Straffordville and Eden commenced in 1996 and is still progressing at the end of 1997. Major road construction undertaken during the year included the following roads: Tollgate Road, Pressey Road, Ball/Cain Street, Centre Street and the White culvert. The Road Department acquired a new four wheel drive pick up truck during the year, allowing the existing pick up truck to be utilized by the Building/Drainage Department. 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 combined promise 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 704404aj Eay'liatic 3A TOWNSHIP OF BAYHAM CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1997 Budget Actual Actual 1997 1997 1996 SOURCES OF FINANCING: $ $ $ Taxation and user charges Residential and farm taxation 2,861,773 2,912,520 2,693,703 Commercial,industrial and business taxation 408,760 435,968 443,940 Taxation from other governments 7,400 8,515 7,618 User charges 129,380 202,105 253,538 Grants Province of Ontario 366,500 362,001 598,020 Other Investment income,penalties and interest on taxes 50,211 71,557 70,685 Other 62,000 80,609 23,440 Deduct:Amounts received or receivable for County and school boards(note 2) (2,184,299) (2,222,732) (2,087,997) Net appropriations from reserves and reserve funds(note 8) 153,900 46,764 - MUNICIPAL FUND BALANCES AT THE BEGINNING OF THE YEAR(note 7) To be offset(or to be recovered from)taxation 19,194 51,597 43,973 Capital operations not yet permanently financed - (28,500) _ (290,000) Total financing available during the year 1,874,819 1,920,404 1,756,920 The accompanying notes are an integral part of this financial statement 3B TOWNSHIP OF BAYHAM CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31,1997 Budget Actual Actual 1997 1997 1996 APPLIED TO: $ $ $ Current operations(note 9) General government 326,890 368,537 296,640 Protection to persons and property 184,660 158,355 145,206 Transportation services 543,281 519,437 452,727 Environmental services 222,348 206,436 337,102 Health services 28,000 27,909 38,483 Social and family services 450 640 948 Recreation and cultural services 68,590 57,293 61,015 Planning and development 57,600 99,492 58,039 1,431,819 1,438,099 1,390,160 Capital General government 1,500 - 554 Protection to persons and property 107,000 116,899 3,920 Transportation services 173,000 135,302 161,458 Environmental services 140,000 51,852 101,323 Recreation and cultural services 21,500 25,046 887 Planning and development 443,000 329,099 268,142 Net appropriations to(from) reserves and reserve funds(note 8) - 75,521 MUNICIPAL FUND BALANCES AT THE END OF THE YEAR(note 7) To be used to offset taxation - 153,206 51,597 Capital operations not yet permanently financed - - (28,500) Total applications during the year 1,874,819 1,920,404 1,756,920 The accompanying notes are an integral part of this financial statement 4 TOWNSHIP OF BAYHAM CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 Actual Actual. 1997 1996 ASSETS $ $ Unrestricted Cash and investments 585,879 534,496 Taxes receivable 251,245 269,064 Accounts receivable 203,021 42,862 Due from reserve funds 13,500 - Other current assets 9,818 6,246 1,063,463 852,668 Restricted Cash and investments 51,013 47,877 Due from(to)revenue fund (13,500) 1,500 37,513 _ 49,377 Capital outlay financed by long term liabilities and to be recovered in future years(note 1(b)(iv)) 4,850 2,419 1,105,826 904,464 LIABILITIES Accounts payable and accrued liabilities 329,665 203,520 Due to reserve funds - 1,500 Other current liabilities 18,092 27,151 347,757 232,171 Net long term liabilities(note 6) _ 4,850 2,419 FUND BALANCES AT THE END OF THE YEAR 352,607 234,590 To be used to offset(or to be recovered from)taxation(note 7) 153,206 51,597 Capital operations not yet permanently financed(note 7) - (28,500) Reserves(note 8) 562,500 597,400 Reserve funds(note 8) 37,513 _- 49,377 753,219 669,874 1,105,826 904,464 The accompanying notes are an integral part of this financial statement TOWNSHIP OF BAYHAM 5A NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 E. 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. TOWNSHIP OF BAYHAM 5B NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 (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. 7outraciA Eaefltetat TOWNSHIP OF BAYHAM 5C NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 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 $ 1,590,605 $ 632,127 Requisitions 1,590,605 632,127 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 $200,946 (1996 $ 163,236) 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 12 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 1997 was $ 22,514 (1996 $ 20,579) for current service and is included as an expenditure on the Consolidated Statement of Operations. 7ovadoaye Eaykifit C TOWNSHIP OF BAYHAM SD NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 5. Liability for Vested Sick Leave Benefits Under the sick leave benefit plan unused sick leave can no longer accumulate. Due to the amalgamation of the Municipality that is to take effect January 1, 1998, the Transition Board of the former municipalities ordered that all accumulated sick leave benefits must be paid out before the amalgamation takes effect. Therefore, each employee who had accumulated sick leave credits were compensated for an amount equal to one half of the number of days remaining to their credit, not exceeding one half of their year's earnings based on the 1997 rate of remuneration. The amount paid out in the year for these accumulated days, to the extent that they were vested amounted to $ 34,074 (1996 $ 29,676). 6, Net Long Term Liabilities 1997 1996 (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 $ 124,578 $ 125,359 • 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 (119,728) (122,940) • Net long term liabilities at the end of the year $ 4,850 $ 2,419 (b) Of the net long term liabilities reported in (a) of this note $ 4,850 in principal payments are payable from 1997 to 2007. All of these payments are recoverable from benefitting landowners. TOWNSHIP OF BAYHAM 5E NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 (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 a water main extension loan, tile drainage loans and a loan to Straffordville Minor Ball. The total amount outstanding as at December 31, 1997 is $ 119,728 (1996 $ 122,940) 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 $ 153,206 (1996 $ 23,097) at the end of the year are comprised of the following: 1997 1996 • for general reduction (increase) of taxation $ 165,120 $ 13,451 • for benefiting landowners related to special charges and special areas (52,789) (15,962) • Cemetery Boards and accumulated net revenue 40,875 _ 54,108 153,206 51,597 • acquisition of fixed assets to be fmanced from the proceeds of long term liabilities - (28,500) $ 153,206 $ 23;097 (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. 70401a0 ai au/ am C" TOWNSHIP OF BAYHAM 5F CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 8. Reserves and Reserve Funds The total balances of reserves and reserve funds of$ 600,013 (1996 $ 646,777) is made up of the following: 1997 1996 Reserves set aside for specific purpose by Council • for computer equipment $ 13,000 $ 13,000 • for water works - 15,000 • for fire capital expenditure - 45,000 • for acquisition of fixed assets 178,000 224,400 • for road construction projects 96,500 - • for working capital 275,000 300,000 Total reserves 562,500 597,400 Reserve funds set aside for specific purpose by legislation, regulation or agreement • for Environmental improvements 4,119 4,007 • for Water capital 4,559 3,004 • for Waste management 3 - • for Eden improvements 13,255 12,820 • for parks and recreation purposes 15,577 29,546 Total reserve funds 37,513 49,377 Total $ 600,013 $ 646,777 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: 1997 i996 Principal payments $ 1,776 $ 2,474 Interest 530 421 $ 2,306 $ 3 895 7aosed4 a‘ eayliam TOWNSHIP OF BAYHAM 5G CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 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 1997 charges from the Ministry - water $ 2,221. 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 February 15, 1998, indicates the following: Accumulated net 1997 debt Total outstanding surplus (deficit) charges long term liabilities Water System ($190) $ 2,000 $ 2,221 The operating surplus and long term liabilities indicated above are not reflected in the accompanying financial statements. 70-uok aj Ear.fkist 611 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 balance sheet of the trust funds of the Corporation of the Township of Bayham as at December 31, 1997 and the statement of continuity of trust funds for the year then ended. These financial statementsare 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 free 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 used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the trust funds of the Township as at December 31, 1997 and the continuity of trust funds 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 14, 1998 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 7 TOWNSHIP OF BAYHAM TRUST FUNDS STATEMENT OF CONTINUITY FOR THE YEAR ENDED DECEMBER31, 1997 Cemeteries Care and O.H.R.P. Developers' Total Maint Fund Funds Deposits 5 $ $ $ Balance at beginning of the year 163,061 152,733 10,328 - Receipts From cemetery boards 24,418 24,418 - - Interest earned 8,795 7,870 - 925 From developers 15,000 _ - 15,000 48,213 32,288 _ 15,925 Expenditures To cemetery boards for maintenance - - - - Loan forgiven 516 - 516 Loss on investment - - - - To Province of Ontario 9,812 — 9,812 - 10,328 _ 10,328 - Balance at end of the year 200,946 185,021 - 15,925 The accompanying notes are an integral part of this financial statement 7acuia 'a y,lastt j' 8 TOWNSHIP OF BAYHAM TRUST FUNDS BALANCE SHEET AS AT DECEMBER 31, 1997 Cemeteries Care and O.H.R.P. Developers' Total Maint Fund Funds Deposits $ $ $ $ Assets Cash and term deposits 129,221 113,296 - 15,925 Receivables 18,226 18,226 -Investments, at at cost Township of Bayham debentures 53,629 53,629 - - 201,076 185,151 = 15,925 Liabilities Payables 130 130 - - Balance - trust capital 200,946 185,021 - 15,925 201,076 185,151 - 15,925 The accompanying notes are an integral part of this financial statement .704Agatefr a,j Sayilae TOWNSHIP OF BAYHAM 9 TRUST FUNDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1997 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 $ 53,629 (1996 $ 48,630) reported on the Balance Sheet at cost, have a market value of $ 53,629 (1996 $ 48,630) 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, 1997 comprise repayable loans of $ Nil (1996 $ 6,392) 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. 7oraisedefta j 'elkusc t j