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HomeMy WebLinkAboutFinancial Statements 1987 VILLAGE OF PORT BURWELL INDEX OF CONSOLIDATED FINANCIAL REPORT DECEMBER 31, 1987 Consolidated Financial Statements Auditors' Report 1 Consolidated Balance Sheet 2 Consolidated Statement of Operations 3 Notes to the Consolidated Financial Statements 4 Trust Fund Auditors' Report 5 Statement of Continuity and Balance Sheet 6 Notes to the Financial Statements 7 Port Burwell Waterworks Balance Sheet Al Statement of Revenue and Expenditure A2 Port Burwell Recreation, Parks and Community Centre Board Balance Sheet B1 Statement of Revenue and Expenditure B2 Financial Statements of Non—consolidated Entities Port Burwell Public Utilities Commission — Electric Utility Auditors' Report C Balance Sheet Cl Statement of Revenue and Expenditure C2 Statement of Changes in Financial Position C3 Notes to the Financial Statements C4 Port Burwell Non-Profit Housing Corporation Auditor's Report D Balance Sheet D1 Notes to the Financial Statements D2 Deloitte Haskins+SeIIs Chartered Accountants 136 Centre Street St. Thomas,Ontario N5R 3A2 (519) 631-8250 AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Village of Port Burwell: We have examined the consolidated balance sheet of the Corporation of the Village of Port Burwell as at December 31, 1987 and the consolidated statement of operations for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests and other procedures as we considered necessary in the circumstances. In our opinion, these consolidated financial statements present fairly the financial position of the Corporation of the Village of Port Burwell as at December 31, 1987 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 applied on a basis consistent with that of the preceding year. 2141;01 I Chartered Accountants Municipal Auditors' Licence Number 1113 May 30, 1988 2 VILLAGE OF PORT BURWELL CONSOLIDATED BALANCE SHEET DECEMBER 31, 1987 1987 1986 ASSETS UNRESTRICTED Cash $ (8,793) $ 17,439 Taxes receivable 62,433 64,268 User charges receivable 22,558 3,318 Accounts receivable 21,748 36,800 $ 97,946 $121,825 LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 34,351 $ 13,208 Other current liabilities - 16,617 34,351 29,825 FUND BALANCES ACCUMULATED NET REVENUE (DEFICIT) (Note 5) (4,066) 11,998 (CAPITAL OPERATIONS NOT YET FINANCED) (Note 5) (36,865) (50,332) RESERVES (Note 6) 104,526 130,334 63,595 92,000 $ 97,946 $121,825 The accompanying notes are an integral part of the financial statements. 3 VILLAGE OF PORT BURWELL CONSOLIDATED STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1987 Actual Actual Actual Actual 1987 1986 1987 1986 SOURCES OF FINANCING APPLIED TO Taxation and user charges Current operations Residential and farm $ 99,212 $ 89,810 General government $126,315 $102,722 Commercial and industrial 19,836 20,274 Fire protection 27,879 21,654 Business 5,753 5,968 Other protection to persons and property 6,119 5,767 Taxation from other governments 3,156 9,540 Transportation services 111,612 84,911 User charges 131,841 153,728 Sanitary sewers 61,032 54,507 Frontage and connection 34,667 19,575 259,798 279,320 Waterworks system 96,967 97,111 Garbage collection and disposal 19,175 18,199 Grants Recreation and culture 48,343 52,399 Province of Ontario 152,880 174,533 Planning and development 12,328 - Canada 13,704 Other municipalities 2,518 2,287 544,437 456,845 169,102 176,820 Capital operations General government - Other Protection to persons and property 7,041 15,858 Donations 8,399 23,594 Transportation - 6,418 Investment income 1,653 3,745 Environmental services o - 24,570 Penalties and interest on taxes 7,740 6,680 Recreation and culture - 5,967 Prepaid special charges - 5,706 Licenses and permits 6,415 1,802 7,041 52,813 Rents and concessions 16,054 14,015 Sundry 53,912 4,334 Net appropriations to reserves - 46,344 94,173 59,876 Net appropriation from reserves 25,808 - Municipal Fund Balances, Beginning of Year (Note 5) Municipal Fund Balance, End of Year (Note 5) To be used to offset taxation or user charges 11,998 72,940 To be used to offset taxation or user charges (4,066) 11,998 (Capital operations not yet financed) (50,332) (71,288) (Capital operations not yet financed) (36,865) (50,332) (38,334) 1,652 (40,931) (38,334) $510,547 $517,668 $510,547 $517,668 The accompanying notes are an integral part of the financial statements. 4 VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1987 1. ACCOUNTING POLICIES The consolidated financial statements of the Corporation are the representation of management prepared in accordance with accounting policies prescribed for Ontario municipalities by the Ministry of Municipal Affairs. 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 financing and expenditures of the revenue fund, capital fund, and reserves and include the activities of all committees of Council and the following boards which are under the control of Council: Port Burwell Recreation, Parks and Community Centre Board Port Burwell Waterworks All interfund assets and liabilities and sources of financing and expenditures have been eliminated with the exception of loans or advances between other funds of the municipality and the resulting interest income and expenditures. (ii) Non-consolidated Entities The following local boards, joint boards, municipal enterprises and utilities are not consolidated. Port Burwell Public Utilities Commission - Electric Utility (iii) Accounting for County and School Board Transactions (net) 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 these financial statements except to the extent that overlevies (underlevies) are reported on the "Consolidated Balance Sheet" as "other current liabilities" ("other current assets.") 4 Page 2 VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1987 1. ACCOUNTING POLICIES (continued) (a) Basis on Consolidation (iv) Trust Funds 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 (Nonaccrual) (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. (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 or capital funds transferred to other organizations is reported on the "Consoldiated Balance Sheet. " 4 Page 3 VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1987 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 County Boards Taxation $30,287 $123,955 Requisitions 31,168 122,246 (Underlevies), for the year (881) 1,709 (Underlevies), beginning of year (882) (4377) (Underlevies), end of year $(1,763) $ (2,668) 3. LIABILITY FOR VESTED SICK LEAVE BENEFITS Under the sick leave benefit plan, unused sick leave can accumulate and employees may become entitled to a cash payment when they leave the Municipality's employment. The liability for these accumulated days, to the extent that they have vested and could be taken in cash by an employee on termination, amounted to $6,717 (1986 - $6,404) at the end of the year. No provision has been made for this liability in the financial statements. 4. TRUST FUNDS Trust funds administered by the Municipality amounting to $119,862 have not been included in the "Consolidated Balance Sheet" nor have their operations been included in the "Consolidated Statement of Operations." 4 Page 4 VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1987 5. MUNICIPAL FUND BALANCES AT THE END OF THE YEAR (a) The balances on the "Consolidated Statement of Operations" of municipal equity (or deficit) of $(40,931) (1986 - $(38,334) at the end of the year are comprised of the following: 1987 1986 Accumulated Net Revenue (Deficit) For general reduction (increase) of user charges Port Burwell Recreation, Parks and Community Centre Board $ 14,147 11,998 Port Burwell Waterworks (18,213) - (4,066) 11,998 Capital Operations Not Yet Financed Acquisition of fixed assets to be recovered through user charges (36,865) (50,332) Total Municipal Equity (Deficit) $(40,931) $(38,334) 6. RESERVES The total balance of reserves of $104,526 (1986 - $130,334) is made up of the following: 1987 1986 Reserves Set aside for specific purpose by Council For acquisition of fixed assets $ 5,132 $ 5,132 For working funds 99,394 125,202 $104,526 $130,334 4 Page 5 VILLAGE OF PORT BURWELL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1987 7. 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: 1987 1986 Principal $ - $ - Interest - - $ - $ - 8. CONTRACTUAL OBLIGATION - MINISTRY OF THE ENVIRONMENT In accordance with a service agreement entered into by the Municipality in 1972 with the Ministry of Environment, the existing water system 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 1987 charges from the Ministry for water service charges of $70,254 and water frontage and connection charges of $34,667. 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 31, 1987, indicates the following: Total Outstanding 1987 Debt Long-term (Surplus) Charges Liabilities Water system $ 25,000 $17,000 $180,000 The operating surplus and long-term liabilities indicated above are not reflected in the accompanying financial statements. Deloitte 5 Haskins+Sells Chartered Accountants 136 Centre Street St. Thomas, Ontario N5R 3A2 (519) 631-8250 AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Village of Port Burwell: We have examined the balance sheet of the trust fund of the Corporation of the Village of Port Burwell as at December 31, 1987 and the statement of continuity of trust fund for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests and other procedures as we considered necessary in the circumstances. In our opinion, these financial statements present fairly the financial position of the trust fund for the Corporation of the Village of Port Burwell as at December 31, 1987 and the continuity of trust fund for the year then ended in accordance with the accounting principles disclosed in Note 1 to the financial statements applied on a basis consistent with that of the preceding year. 1144 Chartered Iccountants Municipal Auditors' Licence Number 1113 March 30, 1988 6 VILLAGE OF PORT BURWELL TRUST FUND STATEMENT OF CONTINUITY DECEMBER 31, 1987 1987 1986 BALANCE AT THE BEGINNING OF THE YEAR $123,619 $ 83,517 RECEIPTS Contribution from Province of Ontario - 40,000 Interest earned 5,874 5,153 5,874 45,153 DISBURSEMENTS Ontario Home Renewal Program - loans forgiven ,i,940, 3,700 Village of Port Burwell - administration fee 1,691 1,351 9,631 5,051 BALANCE AT THE END OF THE YEAR $119,862, $123,619, BALANCE SHEET DECEMBER 31, 1987 ASSETS CASH $ 61,858 $ 53,660 ACCOUNTS RECEIVABLE - 581 LOANS RECEIVABLE 58,004 69,378 $119,862 $123,619 FUND BALANCE ONTARIO HOME RENEWAL PROGRAM $119,862 $123,619 The accompanying notes are an integral part of the financial statements. 7 VILLAGE OF PORT BURWELL TRUST FUND NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1987 1. ACCOUNTING POLICIES (a) Basis of Accounting The accrual basis of accounting is used to account for the transactions of the trust fund. Al VILLAGE OF PORT BURWELL WATERWORKS BALANCE SHEET DECEMBER 31, 1987 1987 1986 ASSETS CURRENT ASSETS User charges receivable $11,530 $3,318 $11,530 $3,318 LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 9,643 $3,318 Due to the Village of Port Burwell 20,100 - 29,743 3,318 FUND BALANCE ACCUMULATED DEFICIT (18,213) - $11,530 $3,318 A2 VILLAGE OF PORT BURWELL WATERWORKS STATEMENT OF REVENUE AND EXPENDITURE YEAR ENDED DECEMBER 31, 1987 1987 1986 REVENUE Sale of water $ 75,594 $ 68,474 General municipal contribution 37,827 19,575 113,421 88,438 EXPENDITURE Ministry of Environment - water charges 70,254 78,629 - operating charges 34,667 19,575 Administration 11,771 7,521 Repairs, maintenance and capital additions 14,942 35,531 131,634 141,256 EXCESS OF EXPENDITURE OVER REVENUE 18,213 52,818 ACCUMULATED NET REVENUE, BEGINNING OF YEAR - 52,818 ACCUMULATED DEFICIT, END OF YEAR $ 18,213 $ - Bi PORT BURWELL RECREATION, PARKS AND COMMUNITY CENTRE BOARD BALANCE SHEET DECEMBER 31, 1987 1987 1986 ASSETS CURRENT ASSETS Cash $ 2,147 $ 5,998 Due from Village of Port Burwell 12,000 6,000 $14,147 $11,998 FUND BALANCE ACCUMULATED NET REVENUE 14,147 11,998 $14,147 $11,998 B2 PORT BURWELL RECREATION, PARKS AND COMMUNITY CENTRE BOARD STATEMENT OF REVENUE AND EXPENDITURE YEAR ENDED DECEMBER 31 1987 1987 1986 REVENUE Rents - municipal trailer park, booth $ - $ 4,800 Grant - Province of Ontario 6,000 6,000 Grant - Village of Port Burwell - 1,759 Fees, service charges and special events 4,739 8,474 Interest 283 95 11,022 21,128 EXPENDITURE Maintenance, supplies and equipment - 6,580 Utilities and other services - 447 Supplies, services and special events 8,873 7,136 8,873 14,163 EXCESS OF REVENUE OVER EXPENDITURE 2,149 6,965 ACCUMULATED NET REVENUE (DEFICIT), BEGINNING OF YEAR 11,998 5,033 ACCUMULATED NET REVENUE, END OF YEAR $14,147 $11,998 Deloitte Haskins+SeIIs Chartered Accountants 136 Centre Street St. Thomas,Ontario N5R 3A2 (519) 631-8250 AUDITORS' REPORT To the Commissioners of the Port Burwell Public Utilities Commission: We have examined the balance sheet of the Port Burwell Public Utilities Commission as at December 31, 1987 and the statements of revenue and expenditure and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests and other procedures as we considered necessary in the circumstances. In our opinion, these financial statements present fairly the financial position of the Port Burwell Public Utilities Commission as at December 31, 1987 and the results of its operations and changes in its financial position for the year then ended in accordance with the accounting principles disclosed in note 1 to the financial statements applied on a basis consistent with that of the preceding year. /4641:104c 4441; 51/..--4(4" Chartered Accountants Municipal Auditors' Licence Number 1113 March 2, 1988 Cl PORT BURWELL PUBLIC UTILITIES COMMISSION BALANCE SHEET DECEMBER 3lJ 1987 1987 1986 ASSETS CURRENT ASSETS Cash $ 24,687 $ 17,463 Accounts receivable less allowance for doubtful accounts of $909 (1986 - $500) 4,799 4,892 Unbilled revenue 26,534 23,600 Inventories - at cost 9,024 5,440 65,044 51,395 PROPERTY PLANT AND EQUIPMENT (Note 2) 1122 972 112 132 EQUITY IN ONTARIO HYDRO 118,161 107,561 Less reserve for equity in Ontario Hydro (118,161) (107,561) $178,016 $163,527 LIABILITIES AND UTILITY EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 20,638 $ 16,592 Current portion of customer deposits 300 900 20,938 17,492 VESTED SICK LEAVE (Note 3) 3,060 2,485 LONG-TERM CUSTOMER DEPOSITS 730 1,119 DEFERRED CREDITS (Note 4) 20,210 21,073 UTILITY EQUITY 133,078 121,358 $178,016 $163,527 C2 PORT BURWELL PUBLIC UTILITIES COMMISSION STATEMENT OF REVENUE AND EXPENDITURE YEAR ENDED DECEMBER 31, 1987 1987 _ 1986 REVENUE Sale of energy Residential $167,844 $163,643 Commercial 86,894 80,976 Street lighting 3,058 2,951 257,796 247,570 Sundry 3,447 3,548 261,243 251,118 EXPENDITURE Energy cost 195,427 180,993 Operation maintenance 18,297 8,869 Billing and collection 16,190 19,646 General administration 9,673 11,947 Interest 192 679 Depreciation and amortization 9,744 9,280 249,523 231,414 NET INCOME FOR THE YEAR 11,720 19,704 UTILITY EQUITY, BEGINNING OF YEAR 121,358 101,654 UTILITY EQUITY, END OF YEAR $133,078 $121,358 C3 PORT BURWELL PUBLIC UTILITIES COMMISSION STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31, 1987 1987 1986 CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Net income for the year $11,720 $19,704 Items not affecting working capital Depreciation and amortization 9,744 9,280 Cash flow before working capital changes 21,464 28,984 Changes in non-cash working capital components Accounts receivable 93 (499) Unbilled revenue (2,934) (1,000) Inventories (3,584) (2,505) Accounts payable and accrued liabilities 4,046 (17,018) Cash (used in) provided by operating activities 19,085 7,962 CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES Purchase of plant and equipment (10,584) (4,065) Increase in vested sick leave 575 388 Decrease in deferred credits (863) - Decrease in customer deposits (989) (121) Cash (used in) investment activities (11,861) (3,798) NET CASH INCREASE DURING THE YEAR 7,224 4,164 CASH, BEGINNING OF YEAR 17,463 13,299 CASH, END OF YEAR $24,687 $17,463 C4 Page 1 PORT BURWELL PUBLIC UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1987 1. SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in accordance with accounting principles generally accepted for Municipal Electric Utilities in Ontario and reflect the following policies: Matching of power costs and revenue Hydro power revenue is recorded on the basis of regular meter readings and estimates of customer usage from the last meter reading to the end of the year. The purchase of hydro power is recorded in the month to which it relates. Property, plant and equipment Property, plant and equipment are stated at cost. Buildings, machinery and equipment are depreciated on the straight-line basis over their estimated service lives. Contributed capital Contributions in aid of construction received prior to January 1, 1980 are a permanent part of surplus and are not to be amortized to operations. Contributions received after this date are included in deferred credits and are amortized to operations at the same rate used for depreciation of the related fixed asset. 2. PROPERTY, PLANT AND EQUIPMENT Accumulated Net Book Cost Depreciation Value Building $ 7,455 $ 2,920 $ 4,535 Distribution system 166,586 91,481 75,105 Transformers 46,951 25,590 21,361 Meters 25,560 16,152 9,408 Office 3,009 2,917 92 Rolling stock 9,377 9,377 - Tools 6,742 6,509 233 Water heaters 1,112 1,112 - Sentinel lights 3,756 2,232 1,524 270,548 158,290 112,258 Land 714 - 714 $271,262 $158,290 $112,972 C4 Page 2 PORT BURWELL PUBLIC UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1987 3. VESTED SICK LEAVE Under the sick leave benefit plan, unused sick leave can accumulate and employees may become entitled to a cash payment when they leave the Commission's employment. The liability for accumulated unused sick leave amounted to $3,060 at December 31, 1987. No provision has been made for this liability. 4. DEFERRED CREDITS 1987 1986 Contribution in aid of construction after January 1, 1980 $23,844 $23,844 Less accumulated amortization 3,634 2,771 $20,210 $21,073 Amortization of these contributions amounting to $863 has been credited to depreciation and amortization expense during the year. Deloitte Haskins+SeIIs Chartered Accountants 136 Centre Street St. Thomas,Ontario N5R 3A2 (519) 631-8250 AUDITORS' REPORT To the Directors of the Port Burwell Non—Profit Housing Corporation: We have examined the balance sheet of the Port Burwell Non—Profit Housing Corporation as at December 31, 1987. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests and other procedures as we considered necessary in the circumstances. In our opinion, the balance sheet presents fairly the financial position of the Corporation as at December 31, 1987. � e Pe:,469/4; Chartered Accountants May 30, 1988 D1 PORT BURWELL NON—PROFIT HOUSING CORPORATION BALANCE SHEET DECEMBER 31, 1987 ASSETS 1987 CURRENT ASSETS Cash $ 81 LAND AND BUILDING Land $ 57,429 Building 185,181 242,610 $242,691 LIABILITIES CURRENT LIABILITIES Due to the Village of Port Burwell $ 2,340 Current portion of mortgage payable (Note 5) 1,235 3,575 LONG TERM DEBT Current payments due under a construction contract (Note 4) $ 98,120 Mortgage payable (Note 5) 140,996 239,116 $242,691 APPROVED ON BEHALF OF THE BOARD Director Director D2 Page 1 PORT BURWELL NON-PROFIT HOUSING CORPORATION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1987 1. SIGNIFICANT ACCOUNTING POLICY These financial statements have been prepared in accordance with generally accepted accounting principles. Land and building Land and building are stated at cost. 2. INCORPORATION The Port Burwell Non-Profit Housing Corporation was formed to plan and develop housing for persons of low or modest income and was incorporated, without share capital, on April 29, 1987 under the Corporations Act (Ontario). 3. PRE-INCORPORATION TRANSACTIONS Prior to incorporation the Village of Port Burwell received an interest free loan of $51,875 from the Ontario Ministry of Housing to assist with the costs of feasibility studies for the housing project. The loan was repaid in December, 1987 out of the proceeds of mortgage advances, and the related expenditures have been included in the cost of the land and building. 4. CONSTRUCTION CONTRACT During 1987 the Corporation entered into a contract for the construction of twenty low-cost housing units at a total cost of $937,775. As of December 31, 1987 work valued at $98,120 had been completed. The Corporation has arranged first mortgage financing totalling $1,194,960. The proceeds of this mortgage will be used to satisfy construction obligations as they become due. 5. MORTGAGE PAYABLE 12% mortgage payable to Canada Life Mortgage Services Ltd. due June 1, 1993 secured by land and building and payable in monthly blended interest and principal amounts of $11,862, commencing on September 1, 1988 Advances to December 31, 1987 $142,231 Less amounts due within one year 1,235 $140,996 D2 Page 2 PORT BURWELL NON-PROFIT HOUSING CORPORATION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1987 5. Mortgage Payable (continued) This mortgage secures the sum of $1,194,960 and prior to the complete advance of funds by the lender, payments of interest only are due monthly. The agregate principal repayments required over the next five years will be as follows: 1988 - $ 1,235 1989 - 2,696 1990 - 3,029 1991 - 3,403 1992 - 3,824 1993 - 1,180,773 $1,194,960