HomeMy WebLinkAboutTimes-Advocate, 1987-07-01, Page 16v
Ntlge 4A Times -Advocate, telly 1, 1987
Stephen Township Financial Statement for4936
AUDITORS' REPORT
To the Members of Council, Inhabitants,
and Ratepayers of the Corporation of
the Township of Stephen
We have examined the consolidated balance sheet of the Corporation of the
Township of Stephen as at December 31, 1986, and the consolidated statement of
operations for the year then ended. Our examination was made in accordance with
generally accepted auditing standards, and accordingly included such tests and
other procedures as we considered ueceasary In the circumstances.
In our opinion, these consolidated financial statements present fairly the
financial position of the Corporacion of the Township of Stephen as et December
31, 1986, and the results of it's operations for the year than ended 1n accordance
with the accounting principles disclosed In note 1 to the financial statements
applied on • basis consistent with that of the preceding year.
Codertch, Ontario
April 14, 1987
Licence No. 1203
CHARTERED AC
11)
. LJ rt�rvt
H:FANTS
TOWNSHIP OF STEPHEN
AS AT DECGIBER 31, 1986
.1 ', S E T S
UNRESTRICTED
Cosh
Taxes receivable
diser charges receivable
Accounts -receivable
1986 1985
$215,312
418,746
68,193
122,275
$ 91,682
461,436
64,071
182.1399
824,526 799.588
T"wnehlp of Stephen - Waterworks
Centralia Centennial Community Centre bard
Dashwood Conmuntty Centre Nerd
Crediton Community Perk Board
Stephen Township Community Centre Board
Stephen Township Arena Board
Stephen Township Recreation Committee
Dashwood Athletic Field
Centralia Parks Board
Dashwood and Area Fire Board
All lnterfund assets and liabilities and sources of financing and
expenditures have been eliminated with the exception of loans or
advances between the reserve funds and any other fund of the
municipality and the resulting Interest income and expenditures.
Non -consolidated Entitles
The following local boards, municipal enterprises and utilities are
net consolidated:
...Police Village of Centralia
Police Village of Crediton
Police Village of Dashwood
Township of Stephen - Municipal
South Huron Recreation Complex
Grand Bend and Area Fire Board
Exeter and Ares Fire Board
1'l eery Crawler y-Ibacd
ill) Accounting for County and School Board Transactions
The taxation, other revenues, expenditures, assets and liabilities
with respect to the operations of the school boards, and the County
of Huron are not reflected in the municipal fund balances of these
financial statements. Overlevies (underlevtes) are reported on the
Consolidated Balance Sheet as "other current liabilities" ("other
current Assets").
- Crediton Coneuntty Park .,o•rd
- Dashwood Community Centre Board
- Centralia Parks board
- Dashwood Athletic Field
For benefitting Isndownets related to
maintenance munlclpal drains to be
recovered through taxation or user :harps
From benefitting landowners related to capital
municipal drains to he recovered from
taxation or user charges r'
From benefitting landowners related co water
available to reduce (to be recovered
from) taxation or user charges -_12,2111t (4,844)-
(356-)
(826)
720
795
(12, 984)
210248
2,130
1,181
496
1,173
(9,487)
49,543
(74,704) (84,400)
(56,608) (89,244)
S15S,440 $(39,701)
Electrical Utility
b) Approval of the Ontarto,[lunlctFal Board hes been obtained for the pending
lesoe of lout (trill llebflitt.•e •ted for those commitments to be financed
from revenues beyond the tern of Co.tncfl.
9. RESERVES AND RESERVE FUNDS
The total balance of reserves and reserve funds of 5498,993 (1985 - $460,261)
and 538,933 (1985 - $34,059) respectively, are made up of the following:
RESTRICTED
Due from the Ministry of Fnvlroraeet - 0.W.R.C.
Investments
30,840 4 23,805
8,093
38,933
10,254
34,059
CAPITAL OUTLAY FINANCED 'Y Wei: TE.':1 LIAEILITLES
ANn TO RE RECOVERED IN FL2vE. YSA.r.b 47,295 52,931
5910,754 5886,576
1, 1 ,' 1. 1 1 8 5
Temporary loans
Accounts payable and accrued ltebtl'rles
Other current liabilities
Net long term liabilities (Dote 6)
$ 48,100
91,929
32.064
5293,000
63,983
22,045
172,093 379,028
47,295 52,931
Iv) Trust Funds
Trust funds and their related operations administered by the muni-
cipality are not consolidated, but are reported separately on the
"Trust Fund Balance Sheet and Stetement of Continuity".
(b) Basis of Accounting
Reserves set adds for specific purpose by
For working capital
For capital expenditures
- roads
- recreation
- fire
- Crediton Community Park Euard
- Dashwood Community Centre Board
- Centralia Cenntennlal Community Centre
- water
- waterlines
- garbage disposal
1986 1985
Council:
5283,685 5274,020
60,000
1,908
40,000
1,14}
338
11,- 063
20,856
80,000
15,000
30,197
30,000
1,141
338
1,644
11,063
16,858
80,000
CONTINGENT LIABILITY (note 7)
F '! N U BALANCES
Surplus - to be used to offeot taxation or
user charges In 1967 (note 8)
Capital operations not yet permanently
financed (note 8)
Reserves (note 9)
Reserve funds (note 9)
219,388 431,959
1) Sources of (lnencing and expenditures are reported on the accrual
basis of accounting with the exception of principal and interest
charges on long term liabilities which are charged against
operations In the period to which they are paid.
11) The accruet hasie of accounting recognizes revenues es they become
available and measurable; expenditures are recognized ss they are
Incurred and measurable as a result of.receipt of goods or services
and the creation of a legal ubltgatlon to pay.
ill) Fixed Assets
The historical cost and accumulated depreciation for fixed assets
are not recorded for municipal purposes. Fixed assets are reported
as an expenditure on the "Consolidated Statement of Operations" in
the year of acquisition.
210,248 49,543
(56,808)
498,993
38,933
$910,754
(89,244)
460,261
34,059
5886,578
iv) Capital Outlay to be Recovered in Future Years
"Capital outlay to be recovered in future years", which represents
the outstanding principal portion of unmatured long term
liabilities for runicipal expenditures or capital funds transferred
to other organizations, is reported on the "Consolidated Balance
Sheet".
2. OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF HURON
Further to note 1(a)(ilt), the tsxatton, other revenues, expenditures and over -
levies of the school boards and the County of Huron are comprised of the
following:
Ar^iilll-L:t eY COUNCII.
0Ele'4-.t1
Y REEVE
Taxation
Grants
Requisitions
School
Boards Co. u:tty
51,181,615 $453,600
38.526
1.181,615 492,126
1,181,551 4'22,103
Total Reserves
5498,993 $460,261
Peserve funds vet aside for specific purpose by Council:
For capital expenditures - water $ 8,0921,
Reserve funds set aside for specific purposes by
Legislation, Regulations or Agreement:
For 0.W.R.C. - water
For 0.W.R.C. - Huron Park water
For sewers - Huron Park
14,451
9,834
6,556
$ 10.254
13,008
6,478
4,319
30,861 23,805
Total Reserve Funds $38,933
$ 34,059
Increase for the year
$43,606 5113,441
10.CHARGES FOR.NET LONG TERM LIABILITIES
Total charges fur the year for r,et long term liabilities which are reported
on the "Consolidated Statement of Operations" are as follows:
Principal payments including contributions to
the Ministry of the Environment Debt
Retirement Fund
Interest
1986
1985
53,051 32,828
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1986
Budget Actual
1986 1986
SOURCES OF FINANCING:
Taxation and user charges
Residential and farm taxation
• Commercial, industrial and
business taxation
Taxation from ocher governments
Water and sewer billings
Fees and service charges
Telephone levies
Municipal drain charges
Actual
1985'
51,593,523 $1,598,881 31,476,662
509,175
101,305
298,703
184,715
54,590
2,742,011
519,963
104,947
295,485
193,066
54,590
1,
2,768.135
469,261
100,835
259,300
171,919
49,580
4,234
Overlevies for the year
Overlevies - Beginning of year
06erlevles - End of year
64 23
811 307
$ 875 3. 330
3. CONTRIBUTIONS TO UNCONSOLIDATED JOINT BOARDS
Further to note l(a)(tt) the following contributions were made by the
municipality cu these boards:
Y
1986 A 1985
South Huron Recreation Complex $ 1,200 $ 2,530
Grand Bend and Area Fire Board 12,500 11,526
Exeter and Aren Fire Board 12,356 10,264
Pinery Cemetery Board 597 860
6,797
7,020
59,848 $9,846
The charges for long term 11Ablltttes assumed by the school boards or by
individuals In the case of rhe the drainage loans are not reflected In these
statements.
1l. 110N ACCRUAI. or IN:ERESF fCl LONG TERM LIABILITIES
No provision has been made to these financial statements for the accrual
of interest an the net long term Iiabtlittea. Had this provision been made,
the municipal fund hal.,nces as at December 31, 1986, would have decreased
by 5250 (1985 - 5250).
12. CONTRACTUAL OBLIGATION - y11NISTRY Or THE EN'JIRON,:CNT
In accordance with a service agreement, entered into by the municipality
with the Ministry of Environment, the existing water and sewage systema are
owned and operated by the Ministry. The municipality is obligated to meet
all operating coots anti repay long term liabilities related to these
projects.
2,533,791
Grants
Province of Ontario
Other municipalities
584,618
49,375
633,993
544,590 452,476
33,942 10.875
578,532 463,351
Other
Penalties and Interest on taxes
Investment Income
Water area collections
Municipal capital drainage collections
Other
Transfers from trust funds
30,000
16,000
67,491
123,012
2,100
41,417
26,542
'76,592
80,569
7,479
1.565
54,932
20,972
39,290
7,381
1,240
3.516
326,653 325,180
The municipality is contingently liable for its share of the,accumulated
deficits ss at the end of the year for these boards. The municipality's eh•re
of the accumulated surpluses (deficits) of these joint boards is as follows:
T SHARE 1986 11 1985
Grand Bend and Area Fire Board 33X $ 830 $ (138)
Exeter and Area Fire Board 92 7961 5,065
'}oral funds relied for the year
Deduct: amounts received or receivable
for county and school boards (note 2)
Proceeds from the issue of long tern
liabilities
238,603
3,614,607
1,661,002
1,953,605
234,164 127,331
3,580,831
1,673,741
1,907,090
3,124,473
1,547,578
1,576,695
12,192
MUNICIPAL FUND BALANCES - BEGINNING OF YEAR
To be used to offset taxation or user
charges (note 8)
Capital operations not yet
permanently financed (note R)
TOTAL FINANCINC AVAILABLE FOR ?HE YEA6
APPLIED TO:
Current Operations
General government
F1r3 (note 3)
Conservation authority
Protective inspection and control
Roadways
Streetllghting
Waterworks systen
Sanitary sever system '
Gerbage collection
Garbage disposal
Ceneteriee
Parka and recreation
Planning And zoning
MunlclpAl drains
63,246 49,543 109,969
(89,244) (89,244) (33,175)
(25,996) (39,701) 76,814
51,927,609 $1,667,389 31,665,901
Budget
1986
Actual
1986
Actual
1985
58,791 54,927
Included in the "Consolidated Statement of Operations" are the 1986 charges
from the Ministry - sewage 577,861; water $38,182. The "Consolidated
Balance Sheet" does not reflect any assets or llatilitles pertaining to the
water and sewage systems except to the extent of service charges due to (or
from) the Ministry.
Information received from the Ministry as at March 31, 1987 indicates the
following:
Accumulated 1986 Debt.Total Outstanding
Net Surplus (Deficit) Charges Lng Term Liabilities
Water - integrated
rro)erta
Sewage system
These amounts have been accrued In the municipality's financial statements.
4. TRUST FUNDS
Trust funds administered by the municipality amounting to 3254,982 (1985 -
$224,115) have not been included to the "Consolidated Balance Sheet", nor have
their operations been included in the "Consolidated Statement of Operations".
5. INVESTMENTS
The total of investment. of 58,092 (1985 - 510,254) reported on the
"Consolidated Balance Sheet" at cust have • market value of 58,092 (1985 -
$10,254) at the end of the year.
6. NET LO1tC TERII LIABILITIES 2'
a) The balance of net lnng term liabilities
reported on the "Conaolldxted Balance Sheet"
is made up of the following:
Total long term liabilities -incurred Ly the
municipality Including those incurred on
behalf of school boards and outstending et
the end of the year amount to
Of the long term llabilitle■ shown above,
the responsibility for payment of principal
and Interest charges has been assured by the
..school boards. At the end of the year, the
outstanding principal amount of this
liability Is
$ 195,763 $ 185,184 5 211,544
85,599 83,809 72,562
20,094 20,022 18.237
15,300 15,314 15,077
361,000 371,601 344,792
5,746 4,319 4,862
200,614 141,510 144,787
142,637 108,679 97,308
8,686 90995 10,000
45,100 37,700 60,774
597 597 860
194,872 185,405 165,102
1,095 7,066
4,660 7,355
1275,508 1,169,910 1,160,326
Capitol
Roadways
Parke and recreation
Waterworks
Fire
Municipal dralna
General government
231,000
64,723
121,647
41,673
130,131
7,200
616,374
147,786
95,541
77,699
36.602
134,359
6.046
269,011
11,305
34,845
6,504
85,968
4.202
500,433 _ 431,835
1986 1985
5(29,000) 536,923 $342,000
13000 25,000 205,000
5(16,000)
$61,923 5547,000
' The operating surplus (deficit) and long term llebllttles indicated above
arc not reflected in the Accompanying financial statements.
WATERWORKS
BALANCE SHEET
AS AT DECF.HBBR 31, 1986
ASSETS.
$1,491,503 51,841,186
1966 1985
(3,333)
Of the long term liabilities shown above,
the responsibility for payment of principal
and Interest charges for tile drainage loans
has been aeaused by Individuals. At the end
of the year, the outstanding principal amount
of this liability is (1,418,202) (1,732,390)
The tote] value of sinking funds and the
balance In the Ministry of the Environment
Debt Retirement Fund, 'which has been
accumulated to the end of the year to
retire the nutstandtn8 long term liabilities
included above amount to (26,006) (22,532)
Net long tern liabilities at the end
of the year $ 47,295 5 52,931
UNRESTRICTED
Cash
User chargee receivable
Due from Township of Stephen
Due from other municipalities
RESTRICTED
Due from the Ministry of the Environment
$ - 5 6,972
23,372
9,695
111
13,067 28,887
21,738
14,451 13,008
Capital outlay financed by long term liabilities
and to be recovered 1n future year*
14 203
$86,721
42,677
584,572
L I A B I L I T I E S
Accounts payable and accrued liabilities
Due to Township of Stephan
Kat long term liabilities
$ 4,839 $ 5,687
1,167
4,839 6,794
39,203 42,677
b) Of the net long tern liabilities reported In (a) of this note principal
payments are summarized as follows:
1987
to
1991
1992
to
1996
Frnm "Ater charges
Interest to be earned
on sinking funds
512,543 34,450
1997
and
Thereafter TOTAL
52,670 519,663
27,632
$47,295
44,042 49,471
FUND BALANCE
Surplus to be used to offset user charges In
Reserve for expansion
Re fund
Total tunes expended for the year
Net appropriations to reserves and
reserve funds (note 9)
1987 17,165
11,06)
14,451
42,679
386,721
11,030
11,063
13,006
35,101
$84,572
1,891,882 1,670,343 1.592,161
35,727
43,606 113,441
MUNICIPAL FUND BALANCES-- END OF YEAR
To be used to offset taxetlon or
user charges (note 8) - 210,248 49,543
Capital operations not yet
permanently financed (note R) (56,806) (89,244)
153,440 (39,701)
TOTAL APPLICATIONS FOP. TIM, YEAR (1,927,609 $1,667,369 $1,665,901
NOTES in THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEHREK 31, 1986
c) Approval of the Ontsrlo Municipal Board hes been obtained for the long
term liabilities In (s) Issued In the name of the municipality.
d) The nuniclpellty is contingently liable for long term lIabilitle• vlth
respect to the dralnege leans and to those for which the responsibility
for the payment of prinrlpel and interest hes been assumed by the school
boards. The total Amount outetending as at December 31, 1986 is
31,418,202 (1985 - 51,765,7251'mnd is not recorded on the "Consolidated
Balance Sheet".
1, CONTINGENT LIABILITY
The Township has been rimmed in a negligence suit regarding the installation
of a water lineand the sale of voter fee the purpose of consumption. The
amount of the claim 1s S347,000. The Townehlp'a Insurers here dented any
' coverage for the claim and SP a result the Township hae instituted • third
party claim agalnet the insurers. The amount of any liability to the Township
Is not determinable at this time.
1. ACCOUNTING POLICIES
The rnnsnlfdated itnenclal statements o[ the Corporation of the Township of
Stephen are the representation of management prepared to accordance with
/recounting policies prescribed for Ontario municipalities by the Ministry of -
Munlclpel Affairs. Since precise determination of many 'rid liabilities
1s dependent upon future events, the ptep•ratlon of periodic financial
statements necesearlly Involves the use of estimates and approximations. These
have been made using careful judgments.
a) Seals of Consolidation
8. MUNICIrAL FUND BALANCES AT THE END OF THE YEAR
The balances on the "Consolidated Statement of Operations" of municipal equity
(deficit) of $153,440 (1985 - 5(39,701)) at the end of thetlyear are comprised
of the following:
1986 1985
I) Consolidate4 Ralene. Sheet
This statement reflects the assets, liabilities, sources of financing
and expendlturee of the revenue fund, , funds and
the tapirs) fund and inc)ude the setivltles of all committees of
Council and the.following boards, municipal enterprises and utilities
which are under the cnntrol of Council'
For
For
For
For
For
Ent
general reduction of tsxatlnn $149,430 $ 29,911
general reduction of water user charges
- waterworks system 17,165
- Huron Park 170,828
general increase of sewage user charges (99,361)
general (,'rens,. of garbAge "ear ea1)
arges (23,36
genera) (eduction of street light neer
87
charges 2,725 1,046
general re!nctlon (Increase) of recreation 1
user charges
- Stephen Cor.unity Centre %nerd c�, 4,351 3,812
- Centralia CentennIA1 Cunsarnity t. 8,1a 1,129
STEPHEN TOWNSHIP ARENA
STATEMENT OF REVENUE AND EXPENDITURE
FOR THE YEAR ENDED DECEMBER 31, 1986
1986 1983
REVENUE
- ice rental, conressiod booth and ether
Transfer from reserve
Crant - Province of Ontario
- Township of Stephen
5109,868
30,196
15,566
10,360
$ 84,146
7,935
7,928
145992 100,009
11,030
99,503
(66,754)
(22,059)
e
EXPENDITURE
Capital
Wages ar,d benefits
Hest and u111111es
Supplies
Repairs and maintenance
General
insurance
Transfer to reserve
Telephone
' DEFICIT FOR TH8 YEAR
(439)
1
88,056
47,937
25,879
14,211
9,786
7,032
6,184
1,908
770
201,815
61,147
23,158
7,244
10,547
10,488.
15,913
706
135.328
105,823) 3(33,319)
(1
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