Times-Advocate, 1981-08-26, Page 14Page 14 Times -Advocate, August 26, 1981
Report to the Ratepayers of Exeter For The Year 1980
TO The Commissioners,
Members of Council,
Inhabitants and Ratepayers of the
'I'UWN OF' EXETER.
We have examined the balance sheet of the elec-
tric and water departments of the Public Utilities
Commission of the Town of Exeter as at December
31. 1980 and the statements of operations and retain-
ed earnings for the year then ended. Our examina-
tion was made in accordance with generally
;x e 'pted auditing standards, and accordingly includ-
ed such tests and other procedures as we considered
necessary in the circumtances.
In our opinion. these financial statements pre-
sent fairly the financial position of the Commission
as at December 31, 1980 and the results of its
operations for the year then ended. in accordance
wrtti the accounting principles set out in the notes to
:he ttnanctal statements applied on a basis consistent
with that of the previous year. -
I. 'noon. Canada.
March ''. 1981
Kime. Ditchfield. Mills & Dunlop
Chartered Accountants
TOWN OF EXETER
PUBLIC UTILITIES COMMISSION
ELECTRIC DEPARTMENT BALANCE SHEET
December 31. 1980
with comparative figures at December 31. 1979)
ASSETS
1980 1979
Current- (note))
Cash $ 85.810 $ 82,537
11,000 11,000
11,134 2,903
3,745 1,207
111,689 97,647
Investments - at cost
Accounts receivable
Inventory - at cost
Total current assets
Fixed - at cost:
Land 16,298 4,124
Building. plant and equipment 1,419,309 1.154,533
1,435,607 1.158,657
Less accumulated depreciation495,199 395,511
940,408 763,106
Other
Unamortized discount 1.217
Equity in H.E.P.C. 601.438
Deferred past service
pension cost 57,476 60,847
710,262 663,502
Total assets $1,762,359 $1.524,255
2.928
649.858
LIABILITIES AND SURPLUS
Current:
Accounts payable $ 103,042 $
Consumer deposits 2.710
Current portion of
long-term debt 24,526
Total current liabilities 130,278
Long-term
Bank loan 24.E
173.820
Debenture debt outstanding
Past service pension.
cost liability 57,476
256,796
Less portion due within
one year 24,526
232,270
Deterred credit - contributed capital. 360
Reserves Equity in H.E.P.C. 649,858 601,438
Capital surplus:
Equity in assets financed
by debenture 49,714 46,810
Contributed capital 91,872 91,872
141,586 138,682
608,007 557,406
111.612
2,080
14,775
128,467
34.000
18.190
60,847
113,037
14,775
98.262
Retained earnings
Total liabilities and surplus $1,762,359 $1,524,255
TOWN OF EXETER
PUBLIC UTILITIES COMMISSION
ELECTRIC DEPARTMENT
STATEMENT OF OPERATIONS
for the year ended December 31, 1980
with comparative figures for the year ended
December 31. 1979
Revenue
1980 1979
(note 1)
Sale of energy 595.066 549,465
Residential $ 595,066 $ 539,465
Commercial 483,032 419,182
Street lighting 18,177 16.267
Rental 4,532 4,572
Interest and late payment
charges 17,554 10.700
1lascellaneous 6,200 4,522
1,124,561 994,708
Expenses
Energy cost 5,246
Operation maintenance 67,663
Administration 76,279
Financial expense 13,634
Depreciation ( net of
contributed capital amortization). 53,779 32.406
1,096,601 942626
Net Income $ 27,960 $ 52,082
TOWN OF EXETER
PUBLIC UTILITIES COMMISSION
ELECTRIC DEPARTMENT
STATEMENT OF RETAINED EARNINGS
For the year ended December 31. 1980
:with comparative figures for the year ended
766,383
65.736
68.981
9.120
December 31. 1979
_ 1980 1979
Retained earntngs..lanuary 1 $ 557.406 $ 505.3224
Add net income 27.960 52.082
1978 exec:• earnings to be
refunded $ $24.027
Less apprnpnatton for
debt retirement (2,386_1
Retained warnings. December 31 $ 608,007 $ 557,406
TOWN OF EXETER
PUBLIC UTILITIES COMMISSION
WATER DEPARTMENT BALANCE SHEET
December :11 1980
a with comparative figures at December 31. 19791
ASSETS
1980 1979
Current
Cash $ 181.115$ 124.646
Accounts receivable 557 2.714
Inventory 2.950 1.950
Prepaid rent 7,210 11,770
Total current assets - 191,832 141,080
Fixed - at cost
Land 11.375 11.000
F'umphouses and wells 426.856 426.857
Transmission and distribution
system
Equipment
1.607.205 1.550.515
41,638 33,316
2.087,074 2,021.688
Less accumulated depreciation 660,033 599,680
1.427,041 1,422,008
Other
Debenture discount . 3,655 3,870
Total asset $1,622,528 $1.566,958
LIABILITIES ANI) SURPLUS
current
Accounts payable
Due to electric department
Current portion of
long-term debt
$ 3,295 $ 322
3,733 3,773
16,000 22,E
?„3,91,_8 26,105
Total current liabilities .. -
Long-term
Debenture debt outstanding .
Less: portion due within
one year
Capital surplus
Equity in assets financed
by debenture
Contributed capital
Retained earnings
560.000
16 0000
544 000
582,000
22,000
560.000
329,400 307,400
317732 316,357
647,132 623,757
408.368 357,096
Total liabilities and surplus $1,622,528 81,566,958
TOWN OF EXETER
PUBLIC UTILITIES COMMISSION
WATER DEPARTMENT
STATMENT OF OPERATIONS
AND RETAINED EARNINGS
for the year ended December 31, 1980
with comparative figures for the year ended
December 31. 19791 1980 1979
Revenue
Sale of water 137,980 $ 135,558
Domestic $
Commercial 98,456 84,483
Fire protection 24,807 25,447
Investment income 17,559 6,057
Late payment charges 1,064 988
Miscellaneous 3,232 3,200
284,098 255,733
Expenses
General administration
Billing and data processing
Power and pumping
Maintenance
Mains and water towers 8,593 17,582
Meters 226
Services 3,971 4,415
Rent 4,560 7,188
Principat and interest charges 81,350 79,992
Depreciation 60,612 59,498
232,826 234,946
Net income 51,272 20,787
Retained earnings, January 1 357,096 336,309
Retained earnings, December 31 $ 408,368 $ 357,096
TOWN OF EXETER
PUBLIC UTILITIES COMMISSION
NOTES TO FINANCIAL STATEMENTS
December 31, 1980
(with comparative figures at December 31, 1979)
The following summarized balance sheet and income
statement indicates the changes which would be required
in order to report on a fund accounting basis:
Restated
On Fund
Accounting As
INCOME STATEMENT Basis Reported
Revenue $ 284,098$ 284,098
Expenses
Capital expenditures out of revenue. 67,278
Depreciation 60,612
Principal and interest charges 81,135 81,350
Other expenses 88,079 90,864
236,492 232,826
Net income 47,606 51,272
BALANCE SHEET
Assets
Current $ 191,832$ 191,832
Fixed - net 560,000 1,427,041
Other 3,655 3,655
755,487 1,622 528
20,750 18,384
10,480 9,761
42,510 37,900
Liabilities ans surplus
Liabilities $ 567,028$ 567,028
Capital surplus 647,132
Retained surplus 188,459 408,368
755,487 408,368
The Commission believes that the fund accounting
presentation does not present as fairly its financial posi-
tion and operating results and has not adopted the
Ministry's suggested reporting format.
3. PAST SERVICE PENSION LIABILITY
This liability represents the present value of the future
payments required to fullly fund the vested apst service
pension benefits. These payments will be made annually
through 1992.
TOWN OF EXETER
STATEMENT OF REVENUE AND EXPENDITURE
for the year ended December 31,1980
Accumulated net revenue
(deficit) at the beginning
of the year
EXPENDITURES AND TRANSFERS
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
TRANSF'ERS
Transfers to region or county
Transfers to school boards
Total transfers
Total expenditures and
transfers
REVENUE
Revenue by purpose
Municipal purposes
Taxation
Payments in lieu of taxes
Ontario grants
Other grants
F'ees 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 hoard requisition
Taxation
Payments in lieu of taxes
Other
Revenue to pay the school board
requisition
Total revenue
1980
Budget
1
1980
Actual
269 212 269,212
241,250 212,957
398,103
155,650
684,474
52,101
243,613
25,889
1,801
140,108
575,451
715`559
368.676
130.649
660,241
50,101
831
240.818
22667
1.686,940
143.132
590,364
733,496
2.516,639 2.420,436
948,301
16,106
381.254
103,372
214,609
35 000
982,299
18.654
384.068
97.145
176,553
98,586
1,698,642 1.757,305
138.731 142.292
1,377 1.644
140,108 143,936
572,012 586.905
3,438 4.401
5751450 591,306
2,414200 2,492,547
Accumulated net revenue
(deficit) at the end
of the year 168,773 341,323
Analysed as follows:
General revenue 37 147,495
Region or county 1,693 2,497
School boards 451 1,394
Special charges
Special areas
Local boards 9,687 1,478
Municipal enterprises '154,905 1 ,459
166,773 341,323
STATEMENT OF CAPITAL OPERATIONS
for the year ended December 31, 1980
1980 1979
Actual Actual
Unfinanced capital outlay�-
( Unexpended capital financing)
at the beginning of the year Nil Nil
CAPITAL EXPENDITURE
General government 102,173 317
Protection to persons and
property 150,702 81,040
Transportation services 60,180 158,657
Environmental services 366,612 350,997
Health services 528 1,414
Social and family services
Recreation and cultural services 25,221 7,430
Planning and development 10,000
Other 158.534
Total expenditure 873,950 599,855
CAPITAL FINANCING
Contributions from the revenue fund. 330,763 228,555
Contributions from reserves
and reserve funds
Long term liabilities incurred 318,534 242,000
Ontario grants 69,000 69,948
Other 46,579 59,352
Total capital financing 764,876 599,855
Unfinanced capital outlay
(Unexpended capital financing)
at the end of the year 109,074 Nil
BALANCE SHEET
as at December 31, 1980
1980 1979
ASSETS Actual Actual
CURRENT ASSETS
Cash 444,878 241,633
Taxes receivable 79,308 58,773
Accounts receivable 64,211 70,269
Other current assets 79,877 316,778
668,274 687,453
Capital outlay to be recovered
in future years 2,297,241 1,901,591
Other long term assets 128,547 123,209
3,094,062 2,712,253
LIABILITIES
CURRENT LIABILITIES
Temporary loans
Accounts payable and
accrued liabilities 71,862 57,732
Other current liabilities 366
72,228 157.074
Net to term liabilities 2,152,241 1,901,591
Reserve, and reserve funds 492,344 384,376
Accumul ed net revenue
tdeficit a nd unapplied capital
receipts 377,249 269,212
3,094,062 2,712,253
99,342
NOTES TO THE
FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
(a) Statement' of Revenue and Expenditure
This statement reflects the revenues and expen-
ditures of the revenue fund and the following local
boards
Exeter Cemetery Board
South Huron Recreation Committee
Exeter Public Utilities Commission -
Water Department
(b) Statement of Capital Operations
This statement reflects the capital expenditure of
the municipality to be recovered from the general
municipal revenue of the municipality and its local
boards as described in note 1(a).
(c) Balance Sheet
This statement reflects the assets and liabilities of
the revenue fund, the capital fund, reserve funds
and local boards as described in note 1(a). The
assets and liabilities of enterprises that have not
been consolidated are reflected only to the extent
of their related net long term liabilities and capital
outlay to be recovered in future years.
(d) Fixed Assets
The historical cost and accumulated depreciation
of fixed assets is not reported for municipal pur-
poses. Instead, the "Capital outlay to be recovered
in future years" which is the aggregate of the prin-
cipal portion of unmatured long term liabilities,
capital funds transferred to other organizations,
and the cost of capital projects not yet permanent-
ly financed is reported on the Balance Sheet.
(e) Municipal Enterprises
Municipal enterprises are those activities whose
costs are substantially recovered from service
charges on the users. ' The enterprises of this
municipality whose revenues and expenditures
have not been consolidated in these financial
statements are:
Exeter Public Utilities Commission -
Hydro Department -
(f) Charges For Net Long Term Liabilities
Debt retirement costs including principal and in-
terest are charged against current revenues in the
periodsin 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.
2. CAPITAL OUTLAY TO BE,
RECOVERED IN FUTURE YEARS
(a) Some capital outlay to be recovered in future
year does not represent a burden on general
municipal revenues, as it is to be recovered in
future years from other sources:
1980 1979
Benefitting landowners $10,000
Municipal enterprises $759,320 634.190
Downtown Businessmen's Association. 100,000
$869,320 634,190
(b) Capital outlays, including fixed assets and the
transfers of capital funds in the amount of $330,763
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 $22,922 were credited directly to
reserve funds without being recorded as revenues and
expenditures of the Revenue Fund. The sources were:
Contribution from Twp.
of Stephen
Contribution from Twp.
of Usborne
Contributions from subdividers
Investment income
$ 560
1,200
2,000
19,162
$22,922
4. NET LONG TERM UABIUTIES
(a) The balance for 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 mid
municipal enterprises and outstanding at the end Of
the year amount to $2,505,996
Of the long term liabilities shown above, the
responsibility for payment of principal and other
interest charges has been assumed by others for a
principal amount of (274,000)
The total value of sinking funds and the balance in
the Ministry of the Environment Debt Retirement
Fund which have been accumulated to the end of
the year to retire the outstanding long term
liabilities included above, amount to (79,755)
Net long term liabilities at the end of the year
$2,152,241
5. ACCUMULATED NET REVENUE
(DEFICIT) AT THE END
OF THE YEAR
The balance in the revenue fund at the year end is
available to reduce (to be added to) the levies of the
following classes of ratepayers.
1980 1979
General ratepayers $147,495 $120,036
School board ratepayers 1,394 452
County ratepayers 2,497 1,693
$15186 $122,181
6. CHARGES FOR NET LONG TERM LIABIUTIES
Total charges for the year for long term liabilities
were as follows:
1980 1979
Principal payments including
contributions to sinking
funds and to the
Ministry of Environment
Debt Retirement Fund $ 67,884 $ 57,791
Interest 191,230 166,756
5259,114 $224.547
Of the total charges shown above $241,927 were paid
from general municipal revenues of the municipality
and are included in expenditure on the Statement of
Revenue and Expenditure classified under the ap-
propriate functional headings. The remaining $17,187
were recovered from municipal enterprises for which
the related net long term liabilities were incurred and
are not reflected in the statement.-
7.
tatement.-
7. UABIUTY 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 $15,316 at the
end of the year. No provision has been made for this •
liability.
TOWN OF EXETER
CEMETERY BOARD
BALANCE SHEET •
December 31, 1980
(with comparative figures at December 31, 1979)
ASSETS _ 1980 1979
Current:
Cash $ 4,769 $ 2,255
Accounts receivable 1,325 51
Due from perpetual care
fund
379
6.094 2,685
Fixed - at cost:
Land , 10,225 10,225
Buildings 8,032 7,793
Tools and equipment 5,595 5,306
23,852 23,324
Less accumulated
depreciation 4.258 3 576
19,594 19,748
Other - at cost:
Perpetual Care assets 195,148 173,309
Pre -Need Fund assets 1,935 1,693
197,083 175,002
Total assets $222,771 $197,435
LIABILITIES AND SURPLUS
Current:
Accounts payable $ 162 363
Due to Perpetual Care
Fund
Total current liabilities _ 263 363
Reserves:
Reserve for Perpetual
Care Contracts 105,680 173,309
Reserve for Pre -Need
Service Contracts 1,935 1,693
Reserve for Perpetual Flowers 89,468
101
197,083 175,002
Surplus 25,425 22,070
Total liabilities and
surplus $222.771 $197,435
TOWN OF EXETER
CEMETERY BOARD
STATEMENT OF REVENUE,
EXPENDITURE AND SURPLUS
for the year ended December 31, 1980
with comparative figures for the year ended
December 31, 1979)
1980 1979
Revenue
Sale of plots $ 9,621 $ 5,856
Burial charges 7,765 8,275
Foundations and markers 2,653 2,267
Interest transferred from
Perpetual Care 18,484 18,164
Transfer from Town of Exeter 14,000 13,000
Sundry 1,107 1,441
53,810 45,003
Expenses
Administration and general 1,702 1,664
Depreciation 2,033 81 1,459
824
Heat and light
Supplies and repairs 1,682 1,927
Wages and benefits 44.157 38,748
50,255 45,620
Excess of (expenditure over
revenue) 3,355 (617)
Surplus, January 1 22,070 22.887
Surplus, December 31 R5,' 0
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