The URL can be used to link to this page

Home My WebLink AboutFinancial Statements 1995 A850 :Egg fit4 AIND AYHAM 706.44 o Ea.fit 19995 jtuuuzciae Rome TOWNSHIP OF BAYHAM 1995 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 7eumedlio of Vafi �'; Doane Raymond rs 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, 1995 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, 1995 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. I '`' .. 4:(7777-eAll Chartered Accountants Fort Erie, Ontario April 4, 1996 121 Garrison Road Fort Erie Ontario L2A 6G6 Tel: (905)871-0932 Fax:(905)871-9325 1 2A Treasurer's Report The Township of Bayham has a surplus in the General Revenue Fund for the year ended December 31, 1995 of $14,241. This balance was reduced over the year by $88,226. A significant portion of this reduction resulted from a heating and air conditioning unit installed at the Bayham Community Centre for $55,331 which was not included in the 1995 budget. The net working capital figure at year end was $298,373. Contributions to reserves totalled $35,000 while $120,000 was transferred out for use in capital projects. Transfers to reserve funds amounted to $19,474 and $30,000 was transferred to the general revenue account to be applied to the Bayham Community Centre heating and air conditioning unit. Taxes and accounts receivable decreased from $702,364 in 1994 to $343,638 at the end of 1995. Taxes receivable decreased 21% from 1994 to 1995 and represent 9.15% of the 1995 tax levy decreasing 3% from 1994. Taxes were collected on one of two properties in which tax sale proceedings had commenced. Long-term liabilities increased by $59,599 in 1995 as a result of the advance of two tile drain loans for a total of$30,505 and a $44,965 debenture issue for the extension to the Highway 19 watermain. Since these liabilities are fully recoverable from benefitting taxpayers the Township's net long-term liabilities did not increase in 1995. Revenues from taxation and other user charges increased $158,458 over the previous year resulting from a 2.71% increase in assessment and a 4.22% increase in the mill rate. The Township's portion of the increase in the mill rate for 1995 was 2.61%. Council and staff continued to work on ways of doing more with less and managed to keep current operation expenditures $72,186 under budget and $42,678 less than 1994. General Government costs for current operations were $6,810 below budget for an 8% increase over last year. While several expenses increased for the year, a few did decrease - most notably accounting and audit fees which decreased $21,443. Transportation services current operation expenditures came in $31,270 under budget and $47,423 below 1994's actual results. io€44 Veutltast 2B Capital expenditures exceeded the budget amount by $188,610 for the current year and were $647,050 in excess of 1994. The capital projects which took place in 1995 include renovations to the Township office building; new office equipment; a new fire hall; 1990 bucket truck; construction of the Bailey Bridge; completion of the Highway 19 watermain extension; and a heating and air conditioning unit for the Bayham Community Centre. Major road construction undertaken during the year included the following roads: Richard Wood Side Road, Carson Side Road, Richmond Street, 5th Concession East, Malahide Townline, and the Bogus Side Road. Other road projects started which are to be completed in future years include Hevenor Corner and Centennial Road. 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 in consistent with the Township's overall objectives. The utmost care is taken to ensure funds are spent with due regard to economy, efficiency and effectivess. Lynn S. Buchner, CGA Treasurer 7oemakfr 'ay/rasn 3A TOWNSHIP OF BAYHAM CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 Budget Actual Actual 1995 1995 1994 SOURCES OF FINANCING: $ $ $ Taxation and user charges Residential and farm taxation 2,612,156 2;562;514: 2,404,056 Commercial,industrial and business taxation 361,402 429147: 404,194 Taxation from other governments 7,300 7,4Mi 7,214 User charges 123,680 153;502: 121,178 Grants Province of Ontario 479,500 559.41S. 688,222 Other Investment income,penalties and interest on taxes 68,300 77;426: 69,105 Other 33,840 20482: 26,420 Deduct: Amounts received or receivable for County and school boards(note 2) (1,976,700) (100.1:;063) (1,845,557) ................................ Proceeds from the issue of long term liabilities 290,000 ................44,965: 937 MUNICIPAL FUND BALANCES AT THE BEGINNING OF THE YEAR(note 7) To be offset(or to be recovered from)taxation 101,990 :::.....:::::145 68J (43,795) Capital operations not yet permanently financed 0 0205 ) (1,245) Total financing available during the year 2,101,468 1077,075 1,830,729 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, 1995 Budget Actual Actual 1995 1995 1994 APPLIED TO: $ $ $ Current operations(note 9) General government 314,250 307040: 284,458 Protection to persons and property 149,595 ::::: 141,464€ 143,147 Transportation services 430,245 398975: 446,398 Environmental services 246,548 222,995: 242,143 Health services 28,000 20,309: 25,160 Social and family services 1,950 2,69& 900 Recreation and cultural services 44,390 47872 55,552 Planning and development 66,240 60279: 53,952 1,281,218 1F209t032 1,251,710 Capital General government 255,000 283485: 6,276 Protection to persons and property 351,000 " . .'::434458; 6,926 Transportation services 264,250 .............297,010: 286,592 Environmental services 50,000 38876: 161,441 Recreation and cultural services 0 55331: 575 Planning and development 0 0 0 920,250 —130060!06( 461,810 Net appropriations to (from) reserves and reserve funds(note 8) (100,000) (94790) 13,576 MUNICIPAL FUND BALANCES ................................ AT THE END OF THE YEAR(note 7) ................................ ................................ ................................ ................................ To be used to offset taxation 0 ................43,973: 145,683 Capital operations not yet permanently financed 0 :::..:::::::(290009) (42,050) ................................ ................................ ................................ Total applications during the year 2,101,468 1:,977A75.1 1,830,729 The accompanying notes are an integral part of this financial statement 4 TOWNSHIP OF BAYHAM CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1995 AMtua1:::::::: Actual 1995 1994 ASSETS S $ Unrestricted Cash 14;400 205,979 Taxes receivable 268;318:: 339,602 Accounts receivable 75;32€l 362,762 Due from reserve funds 12;50(1:: 0 Other current assets #09! 7.982 519037:: 916,325 Restricted Cash and term deposits 39;356:: 36,146 Due from(to) revenue fund (12;500) 500 36,646 Capital outlay financed by long term liabilities and to be recovered in future years(note 1(b)(iv)) 4;893:: 7,159 5.50;780 960,130 LIABILITIES ................................. Temporary loans 0: 0 Accounts payable and accrued liabilities 192;6G3 181,702 Due to reserve funds 500 Other current liabilities 28;001;; 1,090 . 220;664: 183,292 Net long term liabilities(note 6) 4;893i 7,159 FUND BALANCES AT THE END OF THE YEAR 225;557:: 190,451 To be used to offset(or to be recovered from)taxation(note 7) 43;973:: 145,683 Capital operations not yet permanently financed(note 7) : ::::(290,000) (42,050) Reserves(note 8) :::::::: 544;404E 629,400 ................. Reserve funds(note 8) ;0$ ; 36,646 59 769,679 S501&6 960,130 The accompanying notes are an integral partof this financial statement /oev tltlft o j &'haat TOWNSHIP OF BAYHAM 5A NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 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: Eden Community Centre Board 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. 7oevadeft ai Valikule TOWNSHIP OF BAYHAM 5B NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 (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. Overlevies (underlevies) are reported on the Consolidated Balance Sheet as "other current liabilities" ("other current assets"). (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. 70we a& 'aq ascot '. TOWNSHIP OF BAYHAM 5C NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 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 $ 1,396,212 $ 584,851 Requisitions 1,396,212 584,851 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 $141,506 (1994 $ 132,345) 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 1995 was $ 22,052 (1994 $ 20,304) for current service and is included as an expenditure on the Consolidated Statement of Operations. 7oem 'agltam TOWNSHIP OF BAYHAM 5D NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 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 $ 39,707 (1994 $ 46,381) 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 1995 1994 (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 $ 137,910 $ 78,311 • 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 (133,017) (71,152) • Net long term liabilities at the end of the year $ 4,893 $ 7,159 (b) Of the net long term liabilities reported in (a) of this note $ 4,893 in principal payments are payable from 1995 to 1999. All of these payments are recoverable from benefitting landowners. 7oem a& Eaylam TOWNSHIP OF BAYHAM 5E NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 (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, 1995 is $ 133,017 (1994 $ 71,152) 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 $ (246,027) (1994 $ (103,633)) at the end of the year are comprised of the following: 1995 1994 • for general reduction (increase) of taxation $ 14,241 $ 102,467 • for benefiting landowners related to special charges and special areas (20,136) (7,773) • Cemetery Boards and accumulated net revenue 49,868 49,503 • Recreation and Community Service Boards accumulated net revenue 0 1,486 43,973 145,683 • acquisition of fixed assets to be financed from the proceeds of long term liabilities (290,000) (42,050) $ (246,027) $ (103,633) (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. 7owailtift 6a#4241t TOWNSHIP OF BAYHAM 5F CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 8. Reserves and Reserve Funds The total balances of reserves and reserve funds of$ 571,256 (1994 $ 666,046) is made up of the following: 1995 1994 Reserves set aside for specific purpose by Council • for water works $ 15,000 $ 0 • for fire capital expenditure 20,000 $ 80,000 • for acquisition of fixed assets 219,400 199,400 • for working capital 290,000 350,000 Total reserves 544,400 629,400 Reserve funds set aside for specific purpose by legislation, regulation or agreement • for Eden improvements 12,180 10,711 • for parks and recreation purposes 14,676 25.935 Total reserve funds 26,856 36,646 Total $ 571,256 $ 666,046 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: 1995 1994 Principal payments $ 2,266 $ 3,590 Interest 630 933 $ 2,896 $ 4,523 The charges for long term liabilities assumed by individuals in the case of tile drainage loans are not reflected in these statements. 7 "i 'aq TOWNSHIP OF BAYHAM 5G CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 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 1995 charges from the Ministry - water $ 1,355. 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, 1996, indicates the following: Accumulated net 1995 debt Total outstanding surplus (deficit) charges long term liabilities Water System $ 1,074 $ 206 $ 1,852 The operating surplus and long term liabilities indicated above are not reflected in the accompanying financial statements. 11. Social contract The Social Contract Act requires municipalities to reduce expenditures by a specified amount in each of the years 1993, 1994 and 1995. Unconditional grants will be reduced by a corresponding amount each year. The sectoral agreements between the provincial government and the municipal sector, however, provides for the automatic deferral of 25% of the 1993 social contract target amount and the corresponding reduction of unconditional grants until 1996. For the Township of Bayham the target amount for each year is $ 5,556, and the amount deferred is $ 1,389. 7oty cQlaft at Eat.,lam 5 Doane Raymond r 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, 1995 and the statement of continuity of trust funds 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 financial statements present fairly, in all material respects, the financial position of the trust funds of the Township as at December 31, 1995 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. DGrp Chartered Accountants Fort Erie, Ontario April 4, 1996 121 Garrison Road Fort Erie Ontario L2A 6G6 Tel: (905)871-0932 Fax:(905)871-9325 6 7 TOWNSHIP OF BAYHAM TRUST FUNDS STATEMENT OF CONTINUITY FOR THE YEAR ENDED DECEMBER 31, 1995 Cemeteries Care and O.H.R.P. . TTtal Maint Fund Funds $ $ $ Balance at beginning of the year 132;345:: 123,212 9,133 Receipts From cemetery boards .,:::6 694 6,694 0 Interest earned 9fibl 8,962 699 From Township general fund 0 0 ................................ ................................ ..............16;355:: 15,656 699 Expenditures To cemetery boards for maintenance 7394:: 7,194 0 Loan forgiven Cl]] 0 0 Loss on investment 9 0 0 To Province of Ontario 0 0 7x194'; 7,194 0 Balance at end of the year ......---14150.6ii 131,674 9,832 The accompanying notes are an integral part of this financial statement 8 TOWNSHIP OF BAYHAM TRUST FUNDS BALANCE SHEET AS AT DECEMBER 31, 1995 Cemeteries Care and O.H.R.P. Total Maint Fund Funds $ $ $ Assets Cash and term deposits 814509: 81,509 0 Receivables 3;834:: 707 3,127 Inv Township of Bayham debentures Long term loans receivable 4:9;858::: 49,858 0 6;70 0 6,705 141;906 132,074 9,832 Liabilities Payables 40:0::: 400 0 Balance - trust capital 141;501 131,674 9.832 141;906;;; 132,074 9,832 The accompanying notes are an integral part of this financial statement 704404 01 Eayla .�- TOWNSEIIP OF BAYHAM 9 TRUST FUNDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 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 $ 49,858 (1994 $ 7,159) reported on the Balance Sheet at cost, have a market value of $49,858 (1994 $ 7,159) 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, 1995 comprise repayable loans of $ 6,705 (1994 $ 6,990) and forgivable loans of$ Nil (1994 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. ei al