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ON F His Worship Mayor Lyman A. Gifford and Members of Council of The Corporation of The City of Oshawa. RE: AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31st, 1964 | am pleased to submit the financial statements for the City a Oshawa and its related Boards, Commissions and Committees for the year ended December 31st, 1964 with the Auditor's Report thereon. : These financial statements are compiled in the man- ner prescribed by the Department of Municipal Affairs. The Auditor's Report thereon represents the inde- pendent verification of integrity in the conduct of official responsibility for 1964. Some explanatory comments on certain items shown be of interest and assistance to the members of council. For on the financial statements and supporting schedules ma' comparison purposes the previous year's figures for 196 are bracketted. ASSESSMENT The 1964 taxation year assessment for realty property and business reached a value of $244,473,245 ($230,888,- 490) -- an increase of $13,584,755 or 5.88% over 1963. With the 1964 population count at 70,038 (65,677) the per capita assessment for 1964 is at the rate of $3,490 ($3,515). MILL RATES (Education and General Municipal Purposes) 1964 mill rates for residential assessments were 38.60 (37.00), farm assessments 37.60 (35.38) and business and commercial assessments 43.03 (40.00). TAXATION REVENUE (Statement D) Taxes levied in 1964 were $10,412,644 ($9,253.128) --an increase of $1,159,516 or 12.5% over 1963. The per capita tax levy in 1964 was $148.67 ($140.88). REVENUE AND EXPENDITURE (Statement, D) As shown in the statement of revenue and expenditure there was a surplus for 1964 of $494,205 ($155,655), which was used to reduce the 1965 tax levy. Gross total revenue, classified in detail by source, for 1964 was $12,692,841 ($11,640,934) -- an increase of $1,051,907 or 9% over 1963 Gross total expenditure, classified in detail by func- tion, for 1964 was $12,198,636 ($11,472,934) -- an in- crease of $725,702 or 6% over 1963. DEFICITS (a) HILLSDALE MANOR -- HOME FOR THE AGED The operations of Hillsdale Manor Home for the Aged resulted in.a.deficit.to be absorbed by the City of Oshawa of $52,491 ($43,293) included in the expenditure classi- fication "social welfare' -- on statement D. (b) RECREATION AND COMMUNITY SERVICES Included as revenues and expenditures shown on both sides of statement D classified as 'recreation and com- munity services' are amounts. relating to the following facilities: CAPITAL & LOAN FUND BALANCE SHEET (STATEMENT A) DECEMBER 3{ 1964 June 30, 1965. : | The Corporation of the City of Oshawa ony - TREASURER'S & AUDITOR'S REPORTS INANCIAL STATEMENTS (In Accordance With Section 223a of the Ontario Municipal Act) for the year ended December 31, 1964 with comparative figures for 1963. | TREASURER'S REPORT EXPENDITURE REVENUE NET DEFICIT Swimming Pools $10,602 ~ $3,322 $7,280 Children's Arena 40,951 29,712 11,239 North Oshawe Arena 16,783 4,586 12,197 Kinsmen Stadium 6,405 1,022 5,383 Municipal Airport 22,172 7,886 14,286 (c) UTILITY DEFICIT -- BUS DEPARTMENT $54,374 ($35,415) was paid over to the Oshawa Pub- lic Utilities Commission in accordance with section 8 of the City of Oshawa Act 1960, to cover the bus deficit for 1963 as shown on statement D. DISCOUNT FOR TAXES No discount for taxes was given by the City in 1964. In 1963 this cost was $38,482 as shown on statement D. By taking advantage of section 294a of the Municipal Act the City issued interim tax bills in 1964 prior to. the striking of the mill rate. Earlier tax collections were made commencing the first week in February, and this annual cost of financing was eliminated, REVENUE FUND BALANCE SHEET (Statement B) (a) DUE FROM CAPITAL FUND $916,699 This represents advances made from the revenue fund to provide temporary financing for capital works under _ construction by the Corporation. (b) TAX ARREARS Taxes receivable, before allowance for uncollectible taxes, at December 31st, 1964 were $260,782 ($275,223), a decrease of $14,441 from the preceding year's balance. The allowance for uncollectible taxes, the purpose of which is to provide for possible losses on arrears of taxes was $6,002 ($8,854) or 2.6% of the total tax arrears. * The percentage of the current tax levy collected in 1964 was 97.7% (97.3%). Total collections (including both. current levy and arrears of taxes) were 99.7% (99.3%) of the 1964 current levy. CAPITAL AND LOAN FUND BALANCE SHEET (Statement A) A) The gross debenture debt decreased by $16,218 dure ing the year. New issues of debentures amounted to $1,553,449, including assumed of $400,000,' while deben- ture retirements were $1,569,667. At December 31, 1964 the gross debenture debt in- cluding assumed debt was $18,666,882 ($18,683,100) or $266.52 ($284.47) per capita. Excluding the debt for the Oshawa Public Utilities Commission. which will be paid from utility revenue, the per capita debt was $225.04 ($237.30). ; GENERAL As can be seen from the enclosed financial statements the year 1964 as compared with 1963 has been one of continued growth and development. All of which is respectfully submitted, I. F, MARKSON, C.A, Treasurer. 1FM/EG REVENUE FUND BALANCE SHEET (STATEMENT B) DECEMBER 31 1964 FOR THE YEAR ENDED DEC, 31, 1964 AUDITOR'S REPORT To the Council and Ratepayers Corporation of the City of Oshawa We have examined the accounts of the Corporation of the City of Oshawa for the year ended December 31, 1964 and report as follows: REPORT WORK IN PROGRESS Included in the work in progress of $3,548,117 is an amount $45,690 which represents engineering costs and sundry deferred expenses on various projects for which no approval has been received from the Ontario Municipal Board but which will be included in the project costs when work proceeds, Also included in the work in progress are commit- ments of $436,361 which represent the difference on tend- ered contracts between the amount owing on the last pro- gress certificate received prior to December 31, 1964 and the amount of the tendered contract. Funds available for capital projects have been pro- vided from government subsidies, debenture proceeds and charges to revenue fund expenditures. RECREATION AND COMMUNITY SERVICES Due to the nature of the receipts from the various recreational facilities, the extent of the audit of their re- ceipts has been limited. Statements prepared for the Union Cemetery opera- tions show that the reserve required for perpetual care cone tracts in force has increased so that at December 31, 1964 it is in excess of the corresponding assets by $5,012. We recommend that additional amounts be set aside so that the perpetual care assets will be approximately equal to the reserve. FINANCING FOR CAPITAL:-AND REVENUE FUNDS At December 31, 1964 the City had temporarily bor- rowed $1,019,226 from reserve funds for capital fund pur- poses and $200,000 from reserve funds for revenue fund purposes. We do not know of any authority which would permit the City to borrow for financing purposes from the reserve funds. CONTINGENT LIABILITIES No liability has been reflected in the financial state- ments for any contingent liability that may exist under the terms of a cumulative sick leave plan for city employ- ees and under the terms of a supplementary pension plan, Several claims for compensation under various ex- propriation by-laws were not settled as of December 31, 1964 and the financial statements do not reflect any contingent liability thereunder. STATEMENT OF REVENUE & EXPENDITURE GENERAL COMMENTS During the year we continued to review certain as- pects of the accounting problems with your officials. Many improvements been made in the system during the year system and have discussed any have there are cere tain areas where an updating of the accounting records is required so that proper monthly controls can be main: tained. We understand that certain steps -have already been taken in 1965 to alleviate this situation in certain departments, BOARDS AND COMMISSIONS ' Our examination of the accounts of the City of Osh- awa included the following boards, committees and com missions: Oshawa Public Library Board Hillsdale Manor Oshawa Civic Auditorium Oshawa Public Utilities Commission Oshawa Board of Education Board of Roman Catholic Separate School Trustees OSHAWA PUBLIC UTILITIES COMMISSION Our report on the accounts of the Commission sets out the fact that the costs of certain assets in the bus department are not charged to operations in the year of purchase, Section 64 of the Ontario Municipal Board Act requires the approval of the Board for deferring the cost of assets and this approval has not been requested. Subject to the qualifications concerning (a) the borrowing of reserve funds for capital and revenue fund purposes and (b) the fact that the cost of certain assets in the bus department of the Public Utilities Commission are not charged to operations in the year of purchase, AUDITOR'S OPINION We hereby report that in our opinion: ' (1) The financial transactions which have come unde? our notice have been within the powers of the municipality, (2) The audit has been conducted in accordance with the instruc. tions of the Department of Municipal Affairs. (3) The financial statements present fairly the financial position of the municipality as at December 31, 1964 and the results of its operations fo rthe yea ended on that dote. GUNN, ROBERTS AND CO, Chartered Accountants. Toronto, May 18, 1965 License Number 2543 FINANCIAL STATISTICS REVENUE A COMPARISON OF SALIENT FACTORS FOR THE YEARS (964 AND 1963, 1964 1963 4 ASSETS ASSETS Actual Budget Actual 1964 en Total Revenue from Population Count ...... 70,038 65,677 4,361 'ie 1943 vglsation +. $10,41%644 $10,216,400 $ 9,253,128 OPUEIN "ms vseesessee sess a, os one ong Term Debt General Revenue Including Surplus fro we 1964 1963 Cash on Hand eceies $ 1,790 $ 1,148 Charges Recoverable 390,284 390,284 403,004 Previous Year... s,s ses, $ 12,692,841 $ 11,640,934 $ 1,081,907 Cash in Bank ond Short-term oe Grants and General Expenditure rol Fixed ..scccccccaee $20,562,962 | $19,893,019 pea SN See 670,927 601,199 A is: (excluding ony surplus) ......++06-- 12,198 636 11,472,934 725,702 Rik ts Presi. vasa cove 3,548,117 1,233,642 Accounts Receivoble: saa Pit cai ' 897,204 939,818 979,527 Surplus on General Revenue Fund Account $ 494,205 $ 227,609 $ (21,059) ' EA ee NM RrE LS Byars 55,01 140,045 er MUNICIPAT Tle: 4 Due from Schoo! Previnee of Ontario 967,226 AAI246 Relief Rebates 9,634 9,614 Operating Surplus or (Deficit) of Utilities ' (for Debentures) ....0-.505 6,809,400 6,677,900 Ann Sata ctl A eel ea uceeeen 4 , Government Enterprises: Dominion of Canada ...+..4+ 21,248 120,000 Canale 89,663 60,000 60,000 ph gyal ressessesaccscoscsae § Bert $ ao a $ oan Due from Utilities Other Municipalities ........ 44,886 27,265 Ontario =. ...55 7,210 6,600 6,630 Transportation i re (37.173) (54,374) 17, 201 (for Debentures) ...-.+0e05 2,905,400 3,098,100 Other Funds: Licenses and Permits 88,302 45,500 66,025 : : . A Int ts, Ti Accounts Receivable ..... ies 10,911 Govieal onde 916,699 me " Penalties, ete. 110,75) 37,000 126,376 Net Operating Results of Utilities Bis fears ne govt _ : au ah 8,018 Other Revenues 531,494 368,326 409,850 (After other transactions affecting Oshawa Housing Co. Ltd. .. 36,330 32,284 UGIY: RSRA)-MRATES:: 2 ' Gross otal Revnue 12 537,186 12,063,928 11,314,154 pace ape or. (Deficit) $ 162678 $167,689 8 8.0119 Taxes Receivable less Allowance i pe oe er re { ¢ Osh General Hespital : Surplus from prior years Electric apres e 22,942 256,413 (233,471) Copitolized Sree a ae 507,000 548,000 for Uncollectible Taxes ..., 254,780 266,369 to reduce levy 155,165 168,000 326,780 Tronsportation ... ¢ (37,173) (54,374) 17,201 Other Assets: Toto! R tion $12,692,841 $12,231,928 $11,640,9 $34,369,209 __ $31,193,850 Deferred Charges .......4 5,814 7,902 Otel Revenue Section $12,692.84) § 228 $11,640,934 Assessed Valuation on haa Taxes were 4 lnventodee. sv evicccsas 82,703 59,376 Levied for General Municipal Purposes : an (a) Business and Commercial Property $113,164,290 $107,323,560 $ 5,840,220 Due from Oshawa. Housing Co. Ltd, 6,450 EXPENDITURE (b) Total of all Properties ..... se. 244,473,245 230,888,490 '13,584,755 Total Abies is. hoc es 2 $2,222,793 1964 1963 : [oceaaeemnarscen tocenare cam onmene od Actual Budget Actual Property Toxes Levied ..... coccecces $ 10,412,644...$ 9,253,128. $ 1,159,816 satel Government $ 803,397 $ 978,574 $ 772,715 rotection: to Persons in hi f i LIABILITIES LIABILITIES We UC CU "Sind nd | as te a ublic Works-- Roads, Provinee of Ontario ..s..:+..5 ey 7;210 6,630 '580 Highwoys and n 8: 1964 1963 ce ~ - 663,510 722,614 525,075 $ 96,873 $ 66,630 $ 30,243 nitation an aste 1964 1943 fan Payable and Accrued $1,116,140 $ 673.934 Removal 442,452 412,203 ~--«537,788 Property Toxes Receivable -- -- : : eheee t Conservation of Health 208,416 240,861 193,700 (6) Cpe 8 as scan iiéee 8 206,773 $ 212,228 $ (5,455) . . Debentures and Coupons Due; Social Welfore 48,192 541,101 472,300 {b) Total including arrears... 66.65 ~ 260,782 275,223 (14,441) Debenture Debt Issued and Unmatured | Principal and Interest .. 418,47) 611,417 Education including -- ME os hoes cass $ 4,642,082 $ 4,731,200 Other Municipalities 60,102 Debt Charges 4,244,642 4,162,856 3,771,836 a Rates for both Public and Seperate School Due to Oshawa Public Utilities . Recreation and lupporters Local Improvements .... 3,910,000 4,175,900 aA Waterrnin Community Service 400,015 396,310 384,574 Female ia seveccescecce A ne pie si Men pic fie 6,786,400 6,649,900 Debt Charges jusiness Property ....+ eeeecccccce i ills .00 mills F is wee Shop SIMU a oe excluding Education 1,828,477 1,843,131 1,749,107 Public Utilities ...+.00 ae 2,905,400 _ 3,098,100 Ca nutction oc. 17,623 15,779 ie les --. very 4) 506 be ais Property Acquired for Toxes us Department y ' OD i Pe eae ae cess $18,243,882 $18,655,100 teeny Conarens reatens eg ort he Utility Levi Total Outstanding ......+seeee tee $ 25,254 $ 25,242 $ 12 BR shee : i wi se on Water Frontages 16,698 Mat Reserves wd Allowances against Tax Assets Pe erred Revenue'......seeees y 5 iscount for Taxes F ( R 10's bch cents ie Debentures Assumed +440» 423,000 seals sas Taxes Written Off 35,400 30,000 ~--S 45,050 &) You! Coma 8682 sins 1sesee Aen Ponble 564,982 Revenues paid in advance ...++. 23,673 8,660 Copitel Experiitures jo! Gutstenaing ee cake 728,6 592,128 136,554 ca eas . ' ROGINGE iv ces civtecnteccees 685,984 592,128 out of Reven "763,346 738,416 82.1,021 Due to Other Funds ........ 1,935,925 543,778 Siin 494.205 '155,658 Re-assessment Costa Municipal Debenture Debt -- Gross Funds Available for Capital Re COE ----. (Portion) 2,000 $ 5,042,082 $ 4,731,200 $ 310,882 Projects Including Work in Tota! Liabilities and Surplus .... $3,049,242 $2,222,793 Provision. for Deferred Revenue 88,925 3,910,000 4,173,900 (265,900) Progress .++ 1,083,540 733,059 ee Provision for Allowanens, : 6,809,400 $,877,900 131,500 eserves on eserve Investment in Copital Assets... 12,117,880 11,233,913 Funds 413,504 337,447 379,191 ee 1, 9 15761482 15,585,000 176,482 REVENUE FUND SURPLUS ACCOUNT (Stotement C) BCR Utility ond Other Municipal Enterprises 2,905,400 3,098,100 (192,700) $34,369,209 $31,193,850 | December 31, 1964 cunannates $12,198,636 $12,231,928 $11,472,934 Total (including assumed) ........... $ 18,666,882 $ 18,683,100 $ (16,218) , Depit Credit Surplus for the year ___-494,205 168,00 Municipal Capital Liabilities Other Than ina & Toto! Expenditure SDebortute débt ltsued end urmetured ef $2,112,000. (US Balonce at beginning of year .... $155,655 Section $12,692,841 $12,231,928 $11,640,934 Debenture Debt ..cccccccrscccees $3,584,447 $ 1.276837, $ 2,307,610 Funds) included in, $18,243,882 is shown ot par of exchange. sunt come ee eer $494,205 *Copies of Auditor's Report and Financial Statements including ' Opt eport on i ce] nts 'ie On December 31, 1964 United States funds were quoted in 5 "$649,860 all Boards, Commissions and Committees available from Treas- TREASURY DEPARTMENT 4 Toronto ot a buying rate of $1.075 in terms of Canadian Funds. Total of Debit and Credit Columns | $155,655 ury Dept. upon request, JUNE 30, 1965.