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I, Capital General government 805,534 229,453 Protection to persons and property 34,437 50,711 Transportation services 4,058,588 3,584,447 Environmental services -- 4,250 Health services 14,642 18,413 Recreation and cultural services 642,238 1,013,696 Planning and development 86,767 191.386 5.642.206 5,092,356 NET APPROPRIATIONS TO RESERVES AND RESERVE FUNDS 9,983,891 3,946,001 DEVELOPMENT CHARGES TRANSFERRED TO HYDRO COMMISSION (Note 12) 164,181 -- MUNICIPAL FUND BALANCES, END OF YEAR (Note 7) To be used to offset taxation or user charges 2,518,706 2,350,652 Unexpended capital financing 18,386 92,183 TOTAL APPLICATIONS DURING THE YEAR $37,582,079 $29,973,365 Tne accompanying notes are an integral part of this financial statement CONSOLIDATED BALANCE SHEET DECEMBER 31 .1993 1993 1992 ASSETS UNRESTRICTED Cash $ 6,651,365 $ 4,638,845 Taxes receivable 7,801,366 6,328,599 User charges receivable 732,360 599,961 Accounts receivable 1,122,576 840,295 Other current assets 426.633 487.902 16,734,300 12,895,602 RESTRICTED Cash 24,810,657 15,917,598 Due from own funds 952,313 665,380 Accounts receivable 662.461 574,617 26,425,431 17,157,595 CAPITAL OUTLAY FINANCED BY LONG-TERM LIABILITIES AND TO BE RECOVERED IN FUTURE YEARS (Note 1 (b)) 5.072.333 5.005.682 $48,232.064 $35.058,879 LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 3,884,226 $ 1,892,069 Other current liabilities 4,283,496 3,247,267 8,167,722 5,139,336 NET LONG-TERM LIABILITIES (Note 6) 5,072,333 5,005,682 CONTINGENCIES (Note 10) FUND BALANCES, END OF YEAR To be used to offset taxation or user charges (Note 7) 2.518,706 2,350,652 Unexpended capital financing (Note 7) 18,386 92,183 Reserves (Note 8) 6,029,486 5,313,431 Reserve funds (Note 8) 26.425.431 17,157,595 S48.232.064 $35,058,879 i he accompanying notes ate an integral part of this financial statement. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31. 1993 1. ACCOUNTING POLICIES The consolidated financial statements of the Corporation are the representation of management prepared in accordance with accounting accounting policies prescribed for Ontario municipalities by the Ministry of Municipal Affairs Since precise determination of many assets arid 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. 3. TRUST FUNDS Trust funds administered by the municipality amounting to $340,712 (1992 - $313,883) have not been included in the "Consolidated "Consolidated Balance Sheet" nor have their operations been included 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 179 members (1992 - 184 mem-, bers) of its staff. The plan is a defined benefit plan which specifies 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 1993 was $421,188 (1992 - $433,066) for current service and is included as an expenditure expenditure on the "Consolidated Statement of Operations". 5. LIABILITY FOR VESTED SICK LEAVE BENEFITS During the 1993 fiscal year, the municipality negotiated an agreement to terminate the sick leave benefit plan which had been in effect for many years. The municipality agreed to pay to those employees covered by the plan and who had at least five years service with the Corporation a cash equivalent of 50% of sick leave days accumulated to July 1, 1993 to a maximum of 120 days of salary. Remuneration for the buying out of sick days identified will be available to the employee at any time up to the. time that the employee either leaves the Corporation or retires, at the rate of remuneration in effect at July 1,1993. The liability for remaining outstanding accumulated days, to the extent that they have vested and could be taken in cash by an employee on terminating, amounted to $210,450 (1992 - $542,941) at the end of the year. An amount of $ nil (1992 - $257,894) has been provided for this past'service liability and is reported on the "Consolidated Balance Sheet", included in reserves. reserves. An amount of $403,739 (1992 - $65,870) was transferred transferred from the reserve to assist in financing payments made during the current year and is reported on the "Consolidated Statement of Operations" and is included in "Net appropriations to reserves and reserve funds". The anticipated payments over the next five years to employees- who are eligible to retire are: 1994 1995 1996 1997 1998 Total -- -- $15,105 $19,390 -- $34,495 6. NET LONG-TERM LIABILITIES (a) The balance of net liabilities reported reported on the "Consolidated Balance Balance Sheet" is made up of the following: following: 1S23 1222 Total long-term liabilities incurred by the municipality including those incurred on behalf of school boards, other municipalities municipalities and the Clarington Hydro Electric Commission and outstanding outstanding at the end of the year amount to $ 613,333 $ 303,512 In addition, the municipality has assumed responsibility for payment payment of principal and interest charges on certain long-term liabilities liabilities issued by other municipalities. municipalities. At the end of the year, the outstanding principal amount of this liability is 6,132,377 .5,810,426 Of the long-term liabilities shown above, the responsibility for payment payment of principal and interest charges has been assumed by school boards, the Clarington Hydro Hydro Electric Commission, and other other municipalities. At the end of the year, the outstanding principal principal amount of this liability is (1,616,357) (1,021,426) Of the long-term liabilities shown above, the responsibility for payment payment of principal and interest charges for tile drainage and shoreline property assistance loans has been assumed by individuals. individuals. At the end of the year, the outstanding principal amount of this liability is (57,020) (86,830) Net long-term liabilities, end of year $5,072,333 $5,005,682 the general reduction of taxation would have shown a surplus surplus of $2,570,652 (1992 - $2,439,021). 8. RESERVES AND RESERVE FUNDS The total balances of reserves and reserve funds of $6,029,486 (1992 - $5,313,431) and $26,425,431 (1992 - $17,157,595), respectively, are made up of the following: 1993 1992 Reserves set aside for specific purpose by Council for: Working capital $ 722,852 $ 733,798 Tax write-off 220,072 212,773 Sick leave (45,845) 257,894 Other cultural 46,317 48,664 Acquisition of fixed assets 4,811,501 3,263,476 Building Maintenance and Construction 18,474 14,474 Technical Services 7,166 9,486 Legal/Consulting Issues 122,388 712,866 Community Services Development 10,000 10,000 Election Expenses 75,000 50,000 Firefighters Co-Training 41,561 - $6,029,486 $5,313,431 Reserve funds set aside for specific purpose by Council for: Courtice O.H.A.P. $ 30,727 $ 29,249 Recreation programs and facilities 2,181,784 682,112 Debenture repayment 823,907 690,208 Industrial development 423,987 350,900 Other cultural 172,714 143,474 Acquisition of fixed assets 1,045,706 872,723 Bowmanville Waterfront 4,271 16,942 Municipal Housing Study 3,076 5,946 Newcastle Waterfront Study 52,862 76,120 Bowmanville GO Rail (492) 6,544 Solina Hall Access Project 23,184 -- 4,761,726 2,874,218 Reserve funds set aside for specific purpose by legislation, regulation or agreements: Park purposes 2,007,222 2,511,667 Lot levies and road contributions 9,140,397 9,981,034 Parking facilities 263,454 231,256 Development Charges 2;706,110 1,559,420 Fire Primary Response 100,537 -- Ontario Hydro Nuclear Funds 7,445,985 -- 21,663,705 14,283,377 $26.425.431 $17.157.595 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: 1993 1992 Principal payments $287,845 $289,022 Interest 500,668 520,868 $788,513 $809,890 The charges for long-term liabilities assumed by the non- consolidated entities or by individuals in the case of tile drainage and shoreline property assistance loans are not reflected in these statements. 10. CONTINGENCIES A delay claim which had been submitted to the Town by a contractor contractor relating to the reconstruction of the Town Hall has been settled. The Municipality has commenced legal proceedings against an architectural firm for damages resulting from deficient work related to this settlement. Should any gain occur as a result result of the above legal action the Municipality will account for the gain in the year settlement is reached. A counter claim has been submitted to the Municipality of Clarington Clarington by a local company, alleging damages and punitive damages damages related to an interlocutory injunction obtained by the Town relative to its business operations. The outcome of this action is not yet determinable and accordingly no provision has been made in the financial statements for any liability that may result. 11. BUDGET FIGURES Budgets established for capital funds, reserves and reserve funds are based on a project-oriented basis, the costs of which may be carried out over one or more years. As such, they are not directly comparable with current year actual amounts and budgets have, therefore, not been reflected on the "Consolidated "Consolidated Statement of Operations". 12. HYDRO DEVELOPMENT CHARGES "Pursuant to Development Charges By-Law No. 92-105, the Municipality collects Development Charges on behalf of the Clarington Hydro Commission which are to be used to finance future growth-related capital expenditures. These funds are maintained in a Reserve Fund by the Municipality until required to fund the above-noted expenditures. The Municipality collected Development Charges, in the amount of $164,181, on behalf of the Clarington Hydro Commission and remitted $85,130 to the Clarington Hydro Commission to finance growth-related expenditures incurred. The balance in the related Reserve Fund at December 31, 1993 was $ 0 (1992 - $79,051) and is reported on the Consolidated Balance Sheet." AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle): We have audited the balancé sheet of the trust funds of the Corporation Corporation of the Municipality of Clarington as at December 31, 1993 and the statement of continuity of trust funds for the year then ended. ended. These financial statements are the responsibility of the Municipality's Municipality'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 perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, examining, on a test basis, evidence supporting the amounts and disclosures disclosures in the financial statements. An audit also includes assessing assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement statement presentation. In our opinion, these financial statements present fairly, in all material material respects, the financial position of the trust funds for the Corporation Corporation of the Municipality of Clarington as at December 31, 1993 and the continuity of trust funds for the year then ended in accordance with accounting principles disclosed in Note 1 to the financial statements. statements. Deloitte & Touche Chartered Accountants April 29, 1994 MUNICIPALITY OF CLARINGTON TRUST FUNDS UNDER ADMINISTRATION YEAR ENDED DECEMBER 31.1993 Bowmanville Cemetery 1993 1992 Perpetual Care $216,060 $190,885 Bondhead Cemetery Perpetual Care 19,859 18,275 Trull Cemetery Perpetual Care 1,774 1,774 Advent Cemetery Perpetual Care 918 918 Lovekin Cemetery Perpetual Care 10,000 10,000 Vanderveer Legacy 1,000 1,000 Montague Trust Ontario Home Renewal 30,066 28,709 Program 52,523 53,810 Electrion Surplus Fund 8,512 8,512 $340,712 $313,883 The accompanying notes are an integral part of this financial statement. For more detailed Trust Fund financial statements please contact the municipal offices. NOTES TO THE TRUST FUNDS FINANCIAL STATEMENTS DECEMBER 31. 1993 1. 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. ONTARIO HOME RENEWAL PROGRAM a) The Ontario Home Renewal Program was established by the Ontario Ministry of Housing in 1973 to provide grants for municipalities municipalities to make loans to assist owner occupants to repair, rehabilitate rehabilitate and improve their homes to local property stan-jp-ds. In dividual loans are limited to $7,500 of which the maximum forgivable portion is $4,000. Ontario Home Renewal Program loans receivable at December 31, 1993 comprise repayable loans of $7,096 (.1992 - $10,022) and forgivable loans of $11,576 (1992 - $11,446). Loan forgiveness 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. b) Ontario Draft Regulation 641 has established procedures for the winding down of the Ontario Home Renewal Program. Under conditions stipulated in the Regulation, all Fund balances must be remitted to the Ministry of Housing by March 1, 1994. The Municipality will continue to administer the collection of any outstanding outstanding loans and remit the proceeds, net of 5% administration fee. 3. INVESTMENTS The total for investments by the trust funds of $269,740 (1992 - $247,440) reported on the Balance Sheet at cost have a market value of $269,740 ( 1992 - $247,440) at the end of the year. To o pa J-J 3 35 CZ) 3 pnO-M. cn P 1 C/3 c/3 ~ ° ><8 I £ §■ P P(5 O S3 _ LZl S H tr ct> œ o C3 3 O _ C9 n m tj"ti a »-t ►"1 O "3 CZ> c o < tr E3 P ET ° 8* W p > pr E* 3 P 3 M P3 3 GO >• P3 C " o. £r 7" a M O 3 O 8 3 GO O ct o w 3. "" O op c ! 8 g. £» £ < 3- 3- o 2 3. ^ j C5 rt W j" 3" 3"hd 5® 8 O M o° s- p o r> (» s 3- Cl CL O hi q - o Cl> 3. 3^| gp Ü C o 3 Ï31 3 3 O- 34 Cfl 3* P < <8 te o .. Ill 1 " s,» 9 5' o p'2.02 H §• siBg- y o o 3 3 8 2 go 3 P- os&s 3. (5 O 3. o o O a" 3 p ST ft 5 H 9 D* e o -- S) ps Els-? Tl§ Om E R £ o pa 2 E H O «an* O C/3 5*2 O Q- 'y *§ H sr Q I < <3 3 os 73 § Q CL 5" Er o ■ ^ k: >5* > 3 37 1 3 iB 3 ""C § £â*-<â an a m m o ° " ^ G < So - 1--1 Q- c/3 < sr ËL r T o't'S § 2.0 | §1.3 ?«= S.g 3 cLg.^ $ B's The Clarington Independent, Bowmanville, Saturday, August 20,1994 11