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8 The Canadian Statesman, Bowmanville, August 3,1933 Section Two Corporation of The Town of Newcastle To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Town of Newcastle: We have examined the following combined financial statements of the Corporation of the Town of Newcastle and its committees of council and its local boards, as described in Note 1, as at December 31, .1982 and for the year then ended: Statement of Revenue and Expenditure Statement of Capital Operations Balance Sheet Trust Funds - Statement of Continuity Reserve and Reserve Funds - Statement of Continuity and Analysis of Year End Position 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 combined financial statements present fairly the financial position of the Corporation of the Town of Newcastle and its committees of council and its local boards as at December 31,1982 and the results of their operations for the year then ended in accordance with accounting principles generally accepted for Ontario municipalities applied on a basis consistent with that of the preceding year. i ■ Deloitte Haskins & Sells Chartered Accountants Oshawa, Ontario March 22, 1983 Licence No. 502 STATEMENT OF REVENUE AND EXPENDITURE FOR THE YEAR ENDED DECEMBER 31,1982 Accumulated net revenue (deficit) at the beginning of the year Expenditures ana transiers Municipal expenditures General government Protection to persons and property Transportation services Environmental services Health services Social and family services Recreation and cultural services Planning and development Total expenditure Transfers Transfers to region or county Transfers to school boards Total transfers Total expenditures and transfers Revenue oy purpose Municipal purposes " Taxation Payments in lieu of taxes / Ontario grants Other grants Fees and service charges Other Revenue to pay for municipal purposes Region or county requisition Taxation Payments in lieu of taxes Ontario grants Revenue to pay the region or county requisition School board requisition f Taxation Payments in lieu of taxes Revenue to pay the school board requisition Total revenue Accumulated net revenue (deficit) at the end of the year Analysed as follows: General revenue Reg ion or county School boards ' Special areas Local boards at the beginning of the year Capital expenditure General government Protection to persons and property Transportation services Environmental services Health services Recreation and cultural services Planning and development Other ■ transfer to Expropriation Proceeds Reserve Fund Total expenditure Capital financing Contributions from the revenue fund Contributions from reserves and reserve funds Long term liabilities incurred Ontario grants Other Total capital financing Unfinanced capital outlay (Unexpended capital financing) at the end of the year 1982 1982 1981 Budget Actual Actual $ $ $ 237,622 247,074 61,516 1,403,541 1,529,446 1,940,816 741,684 718,847 561,047 3,141,897 3,368,150 2,609,377 258,773 262,884 318,646 75,225 61,480 61,460 51,649 1,835,194 1,883,291 1,528,268 335,928 264,201 248,166 7,792,242 8,139,948 7,267,780 3,072,907 3,079,181 2,399,713 7,216,031 7,270,033 6,368,359 10,288,938 10,349,214 8,768,072 18,081,180 18,489,162 16,035,852 4,070,255 4,100,875 3,704,233 344,523 386,552 384,878 1,939,287 2,097,354 1,554,800 8,904 30,754 25,969 712,057 865,089 672,198 497,546 902,193 1,100,560 7,572,572 8,382,817 7,442,638 2,717,458 2,738,318 2,395,589 6,011 6,167 5,171 350,185 348,438 3,073.654 3,092,923 2,400,760 7,187,916 7,246,070 6,369,109 9,416 9,685 8,903 7,197,332 7,255,755 6,378,012 17,843,558 18,731,495 16,221,410 489,407 247,074 463,605 206,323 11,626 (2,116) (349) 13,929 (12,472) 25,842 26,997 3,096 489,407 . 247,074 «ERATIONS IBER 31,1982 1982 1981 Actual Actual $ $ 1 129,696 335,186 61,093 12,376 63,686 169,200 566,428 733,843 197,508 319,929 1,092 7,339 340,319 136,795 138,493 1,274 136,175 13,600 "1,5047734 1,394,356 615,569 415,361 345,653 537,265 136,200 13,600 411,391 505,773 126,314 127,847 1,635,127 1,599,846 1 (637) 129,696 TRUST FUNDS STATEMENT OF CONTINUITY FOR THE YEAR ENDED DECEMBER 31, 1982 BALANCE SHEET AS AT DECEMBER 31, 1982 ASSETS Current aaaeta Cash Taxes receivable Accounts receivable Other current assets Capital outlay to be recovered in future years (Note 2) Other long term assets LIABILITIES Current liabilities Accounts payable and accrued liabilities Other current liabilities Net long term liabilities (Note 4) Reserves and reserve funds (Note 3) Accumulated net revenue (deficit) and unapplied capital receipts 1982 Actual $ 2,316,756 1,819,231 618,470 137,670 1981 Actual $ 1,287,166 1,377,409 843.456 128,340 4,892,127 3,636.371 1,790,979 1,977,447 14,414 18,410 6,697,520 5,632.228 1982 1981 Actual Actual $ $ 755,942 559,549 44,287 53,320 800,229 612.869 1,769,503 1,814,275 3,637,744 2,958,010 490.044 247,074 6,697.520 5,632,228 RESERVE AND RESERVE FUNDS STATEMENT OF CONTINUITY AND ANALYSIS OF YEAR END POSITION FOR THE YEAR ENDED DECEMBER 31, 1982 1982 1981 Actual Actual $ $ Available at the beginning of the year for future municipal purposes 2,958,010 1,869,286 Revenue Contributions from the revenue fund 736,198 1,273,929 Contributions from developers 54,653 103,919 Sale of Fixed Assets 31,021 62,303 Parking Revenue 36,547 " 31,586 Contribution from Capital Fund 136,175 Interest earned 261,237 243,986 1.255.831 1.715.723 Expenditure Transfers to the capital fund 345,653 537,265 Transfers to the revenue fund 223.074 73.970 Ontario Home Renewal Plan Loans Forgiven 7,032 10,438 Administration Charges 338 895 Road Closings 4,431 576,097 626,999 Available at the year end for future municipal purposes 3,637,744 2,958,010 ANALYSIS OF YEAR-END POSITION AS AT DECEMBER 31, 1982 Reserves Working Funds Replacement of Equipment Museum - Capital Expenditure General Administration - Cap. Expenditure Sick Leave Other Reserve funds Administrative Improvement Library Parking Lots Road Capital Indust'ial Land Promotion , O.H.R.P. Courtice Costs-OHAP Industrial Land - Debenture Park Facilities Lot Levies Expropriation proceeds Other Year end position of reserves and reserve funds The accompanying notes are an integral part of this financial statement. 1982 1981 Actual Actual $ $ 803,339 850,000 854,005 401,572 12,978 30,000 46,789 107,649 70,000 13,159 1,800.270 1,389,221 481,897 391,912 2,395 151,065 118,939 22,811 20,774 367,898 319,741 80,507 78,013 114,448 105,324 24,264 22,652 228,673 380,565 141,167 128,474 198,736 26.008 1,837.474 1,568,789 3,637,744 2,958,010 NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1982 1. ACCOUNTING POLICIES (a) Statement of revenue and expenditure \ This statement reflects the revenues and expenditures of the revenue fund, committees of council and the following local boards: Public Library Board Clarke Museum and Archives Bowmanville Museum Board Board of Management for the Bowmanville Central Business District Improvement Area Board of Management lor the Newcastle Central Business District Improvement Area Board of Management for the Orono Central Business District Improvement Area 1982 1981 Actual Actual $ $ Balance at the beginning of the year 86,691 80,829 Capital receipts Cemeteries 9,980 5,699 Inteicst Earned 9,484 7,853 19,464 13,552 Expenditure: Contribution toCemolerics 9,368 7,690/ Balance at the end of the year 96,787 86,691 (b) Statement of capilal operations This statement reflects the capital expenditure of the municipality to be recovered from the general municipal revenue ol the municipality and its local boards as described in Nolo 1 (a) The long-term liabilities reported on this statement wore incurred by the Region ol Durham on behalf of the municipality. Ropayrnont ol this debt is the responsibility ol this municipality. (c) Balance sheet This statement reflects the assois and liabilities ol the revenue fund, the capital fund, reserve funds and local boards as described in Note 1(a). The assets and liabilities ol local boards and enterprises that have not been consolidated are reflected only to Hie extent ol their related not long-term liabilities and capital outlay to bo recovered in future years. (d) Fixed assets This historical cost and accumulated depreciation of fixed assets is not reported for municipal purposes. Instead, the "Capital outlay to be recovered in future years" which is the aggregate of the principal portion of unmatured long-term liabilities, and the cost of capital projects not yet permanently financed is reported on the Balance Sheet. (e) Municipal enterprises Municipal enterprises are those activities wnose ousts are substantially recovered from service charges on the users. The enterprise of this municipality whose revenues and expenditures have not been consolidated in these financial statements is the Newcastle Hydro Electric Commission. , (f) Charges for net long-term liabilities Debt retirement costs including principal and interest are charged against current revenues in the periods in which they are paid. Interest charges are not accrued for the periods from the dates of the latest interest payments to the end of the financial year. (g) Trust funds Trust funds administered by the municipality amounting to $96,787 are only reflected in the Trust Funds Statement of Continuity and Balance Sheet. 2. CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS (a) Some capital outlay to be recovered in future years does not represent a burden on general municipal revenues, as it is to be recovered in future years from other sources: 1982 _ Î981 Special charges on benefiting landowners $405,893 $303,888 Municipal enterprises 156,911 167,930 $562,804 $471,818 (b) Capital outlays, including fixed assets and the transfers of capital funds in the amount of $615,569 which have been financed from general municipal revenues of the current year, are reported on the Statement of Revenue and Expenditure. 3. RESERVE FUNDS During the year $383,458 (1981 - $441,794) were credited directly to reserve funds without being recorded as revenues and expenditures of the Revenue Fund^ Major sources were: 1982 1981 Contributions from subdividers $ 54,653 $103,919 Parking revenue 36,547 31,586 Sale of fixed assets 31,021 62,303 Interest earned 261,237 243,986 $383,458 $441,794 4. NET LONG-TERM LIABILITIES (a) The balance of net long-term liabilities reported on the balance sheet is made up of the' following: Total long-term liabilities incurred by the municipality including those incurred on behalf of former school boards, other municipalities and municipal enterprises and outstanding at the end of the year amount to $ 997,055 In addition, the municipality has assumed responsibility for the payment of. principal and interest charges on certain long-term liabilities issued by other municipalities. At the end of the year, the principal amount of this liability is 2,037,589 Of the foregoing long-term liabilities, the responsibility for payment of principal and interest charges has been assumed by others for a principal amount of (1,243,665) Long-term liabilities issued by the municipality and held as investments by consolidated local boards and reserve funds amount to (21,476) $1,769,503 (b) Of the net long-term liabilities reported in (a) of this note, $1,056,052 in principal payments are payable from 1983 to 1987, $644,132 from 1988 to 1992 and $69,319 thereafter and are summarized as follows: 1983 1988 1993 to to and 1987 1992 thereafter Recovered from general municipal revenues $1,000,619 $589,903 $22,070 Recovered from Newcastle Hydro Electric Commission 55.433 54,229 47,249 $1,056.052 $644,132 $69,319 (c) Included in "Net long-term liabilities" on the balance sheet is an amount of $896,926 payable in United States currency, and converted into Canadian dollars at the rate prevailing when the liability was incurred. If the liability is converted into Canadian dollars at the exchange rate prevailing at December 31, the liability would be increased by $145,359. 5. CHARGES FOR NET LONG-TERM LIABILITIES Total charges for the year for long term liabilities were as follows: 1982 1981 Principal payments $192,972 $185,694 Interest - 166,947 174,591 $359,919 $360,285 Of the total charges shown above, $331,091 were paid from general municipal revenues of the municipality and are included in expenditure on the statement of revenue and expenditure classified under the appropriate functional headings. The remaining $28,828 were recovered from the municipal enterprise. 6. 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 terminating employees, amounted to $342,064 (1981 - $293,285) at the end of the year. An amount of $70,000 (1981 - nil) has been provided for this past service liability and is included in reserves on the "Balance Sheet." 7. AGREEMENTS (a) Ministry of Housing In connection with a proposed major development in the Courtlçd' area of the Town, the Ministry of Housing has agreed to provide financial assistance to the Town In the form of a grant of $249,224 and an interest-free loan of $350,000. Tiro grant which was received in 1979 was sot aside in a reserve fund entitled Courtice OHAP Reserve Fund. Expenditures of approximately $135,000, not of related interest earned, have been charged to this reserve fund to date. It is anticipated the loan will be advanced to the Corporation In 1983. (b) Ontario Hydro \ In connection with the Darlington Generating Station Project, Ontario Hydro agreed to contribute approximately $3 million towards the cost ol roads, water, sower services and other expenditures incurred by the municipality during Hie construction period. Those funds wl iich arc field by Ontario Hydro are paid to tho Tow'n as tho costs are Incurred; the balance il any, will bo paid on completion of tho project. Tho balance of tho fund, including interest earned loss payments made to tho Town ol Newcastle lo dale, amounted to approximately $3,400,000 at December 31,1902.