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ATION OF THE TOWNSHIP OF SCUGOG \EPORT & FINANCIAL STATEMENTS OR THE YEAR ENDED DECEMBER 31, 1975 1 J] Q D) OPERATIONS r 31,1975. 75 1974 DAL ACTUAL $ «© ° NIL NIL 4,695 12,308 © 2,060 ® 19,707 2,408 190,366 1,726 76,118 2,200 40,200 3,831 ¥38,699 ,664 126,767 A \ 1 LJ ,817 36,741 ,200 40,200 ,000 134,99 ,350 ,031 338,699 € LJ NIL NIL ET els ; 1974 $ ,539 187,492 ,249 75,006 97 272,924 oof #10,790 602 546,212 950 143,528 552 689,740 § 9 000 200,000 797 95,806 797 95,806 Bh 35 950 143,528 302 127,667" 503 22,739 0% 47% 552 689,740 NOTES TO FINANCIAL STATEMENTS 1. Summary of significant accounting principles (a) Basis of presentation The statement of revenue and expenditure of the revenue fund and the statement of capital fund operations include the accounts of the Municipality and the Public Library Board. The balance sheet reflects the combined assets and liabilities of the funds and local board referred to above. Not included in the aforementioned financial statements are the accounts of the trust funds, which are shown separately and the accounts of the Public Utilities Commission which is a municipal enterprise. (b) Changes in accounting principles and reporting practices The Ministry of Treasury, Economics and Intergovern- mental Affairs has made a number of changes in the 1975 financial reporting requirements for Ontario municipali- ties. These changes were: (1) Inclusion of local boards other than joint boards and municipal enterprises. (2) Inclusion of under and over levies for region and school board purposes as part of accumulated net revenue. (3) Some revisions to the classification of revenue and expenditure. The 1974 comparative figures have been reclassified to conform to the changes in the classification of revenue and expenditure and have been retroactively adjusted to give effect to the inclusion of certain local boards and over and under levies for region and school board purposes as follows: Adjustment for - Inclusion of Certain --_-- As Local Boards Previously and Over and As reported Under Levies a Restated Accumulated net revenue at December 31, 1973......... $ 133,29 $ 4,416 $ 137,715 Expenditure............. Seenrneons (2,491,556) (3,317) (2,494,873) Revenue........ccoeeevveevninnnnnn. 2,466,668 13,229 2,479,897 Accumulated net revenue / at December 31, 1974......... $ 108,41 $ 14,328 $122,739 (c) Fixed assets No value is attached to fixed assets for municipal reporting purposes. Expenditures on fixed assets are charged against current revenues unless the expenditures are financed out of long term debt. Debt retirement costs are charged against current revenues in the periods in which they are paid. (d) Inventories Included in "Other Assets" are inventories of materials valued at cost. (e) Provincial road subsidy, revenue and expenditure on roads . Provincial subsidy programmes are on a 'receipt and disbursement" basis which does not recognize nceruas. The municipality has expended amounts for which the_road" subsidy will not be eligible for claim until the succeeding year. Such possible future subsidy revenues have not been accrued in the current year. (f) Charges for nef long term liabilities Charges for net long term liabilities include principal and interest. Interest charges are not accrued for the periods from the date of the latest interest payments to the end of the fiscal year. 2. Provision for reserves and allowances Provision for reserves amounting to $105,000 are included in the statement of revenue and expenditure, $30,000 being classified under 'General Government" and $75,000 under "Recreation and Cultural Services." 3. Contribution to the reserve funds The revenues of the reserve funds included the following which were credited directly to the reserve funds. Interest earned $ 7,793 Developers" fees . 8,500 + Donations 35,159 $51,452 4. Charges for net long term liabilities Principal Interest Total charges on long term -- liabilities incurred by the municipality........o.cooeennen. $129,068 $54,408 $183,476 In addition, the municipal- ity has assumed responsi- w! bility for the payment of principal and interest charges on certain long term liabilities issued by other municipalities. Dur- ing the year principal and interest charges assumed amounted to..................... 1,000 2,200 Of the charges for long term liabilities incurred by the municipality, others have assumed the respon- sibility for the principal and interest charges which BINOUIH $0... oreo nssisssmsonsns (118,600) (47,655) (166,255) Charges for net long term liabilities........c....cooeeennnnn. $11,468 $8,953 Of the total charges of $20,421 shown above, $10,061 was recovered from benefiting landowners by special charges and the remaining $10,360 was recovered from Port Perry Hydro which incurred the related long term debt. 5. Net long term liabilities Total long term liabilities incurred by the municipality and outstanding at the end of the year amount to...................... $970,247 In addition, the municipality has assumed responsibility for 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......... 142,090 Of the long term liabilities shown above, the responsibility for payment of principal interest charges has been assumed by others for a principal amount of Durham Board of Education......... (733,800) Region of Durham....................... (143,587) Net long term liabilities at the end ets stres of the 4% } $234,950 6. Capital outlay to be recovered in future years Capital outlay of $234,950 does not represent a burden on general municipal revenues as it is to be recovered in future years from a municipal enterprise ($125,390) and special charges on benefiting landowners ($109,560). 7. 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 terminating, amounted to $25,812 at the end of the year. An amount of $15,000 has been provided for this past service liability and is included in reserves on the consolidated balance sheet. 8. Regional water and sewer services The Regional Municipality of Durham is responsible for the operation and debt costs of water facilities and sewage services. The excess costs over user benefit charges are invoiced to the benefiting area municipality. At December 31,1975 there is an estimated excess cost of $56,896 for water services which has been offset by application of an estimated excess revenue for sewage services of $102,993. Consequently, these amoynts have not been reflected in the accompanying financial statements. 9. Legal actions The Regional Municipality of Durham has requested a hearing beforg'the Ontario Municipal Board to determine what portion if any of certain development charge levies and reserve funds collected by the Township of Scugog are vested in the Regional Corporation under the Regional Municipality of Durham Act. 10. Contractual obligation At December 31, 1975 the municipality has contracted to receive the proceeds and accept the liabilities of certain debentures issued by the Regional Municipality of Durham in the amount of $25,804. The proceeds were received by installments paid in January and March of 1976. Since the sale of these debentures was not completed in 1975, the liability is not reflected in the accounts at December 31, 1975. 2 2 a ARI IRAE SX Ser SALE REDE ne " \ Sa 4 PRN PELE of of waa (She PITY A CAA LY AT I 3A, ld