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Zurich Citizens News, 1976-05-26, Page 6Page 6 -Citizens News, May 26, 1976 iprrlrwe alrrl bili °' lrmum= srrrwag rlrtis rrrrrrrrrrrrEnauNE rrrrrINN Ill lrrrMill rrr 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE ■ ZURICH - AUDITOR'S REPORT, 1975 TO: The Members of Council, and Ratepayers of the Corporation of the Village of Zurich. We have examined the 1975 financial statements of the Corporation of the Village of Zurich and its local boards, which are listed on the attached. Index. Our examina- tion included, a general review of the accounting procedures and such tests of accounting records and other supporting evidence as we considered necessary in the circumstances. In our opinion these financial statements present fairly the financial position of the Corporation of the Village of Zurich and its local boards as at December 31st, 1975, and the results of their operations for the year then ended, in accordance with accounting principles generally accepted for Ontario municipalities applied, after giving retroactive effect to policy changes as shown in note 8 of the notes to finan- cial statements, on a basis consistent with that of the preceding year. Woodstock, Ontario March 31, 1976 Licence Number 439 G.H. Ward & Partners STATEMENT OF REVENUE AND EXPENDITURE for the year ended December 31, 1975 Accumulated net revenue (deficit) at 1 the beginning of the year 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 a 1 1 1: 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 1 Expenditure General municipal purposes General government Protection to persons and property Transportation services Environmental services Health services Social and family services Recreation and cultural services Planning and development Other Region or county purposes School board purposes Total expenditure Revenue General municipal purposes Taxation Payments in lieu of taxes Ontario grants Other grants Other Region or county purposes Taxation Payments in lieu of taxes Ontario grants School board purposes Taxation Payments in lieu of taxes Other Total revenue Accumulated net revenue (deficit) at the end of the year Accumulated net revenue (deficit) at the end of the year Analysed as follows: General revenue Region or county School boards b) Fixed Assets No value is attached to fixed assets for municipal reporting services. Expendi- tures on fixed assets are charged against current revenues unless the expendi- tures are financed out of -.long term debt . Debt retirement costs are charged against current revenues in the periods in which they are paid. c) Provincial road subsidy revenue and expenditure on roads Provincial subsidy programmes are on a "receipt and disbursement" basis which does not recognize accruals. The municipality has expended amounts for which the road subsidy will not be eligible for claim until the succeeding year. Such future subsidy revenues have been accrued in the current year. d) Charges for net long term liabilities Charges for net long term liabilities include principal and interest. Interest charges are not accrued for the period(s) from the date(s) of the latest interest payment(s) to the end of the fiscal year. 2. CHARGES FOR NET LONG TERM LIABILITIES Total charges for the year for net long term liabilities were as follows: Principal payments Interest 7,423 17,532 24,955 1975 1974 Actual Actual Of the total charges shown above $7,825 was paid from the revenue of the municipality and is included in expenditure, classified under the appropriate functional headings, and $17,130 was recovered from the municipal enterprises (10,700) (4,388) for which the related net long term liabilities were incurred. 3. PROVISIONS FOR RESERVES AND ALLOWANCES Provisions for reserves and allowances amounting to $500 are included in the "Statement of Revenue and Expenditure'. 4. CONTRIBUTIONS TO RESERVE FUNDS The revenues for the year of reserve funds include the following which credited directly to the reserve funds. Interest earned on bank deposits Subdivider and developer contributions 21,443 6,518 41,788 24,817 198 45,384 2,477 20,439 10,280 23,215 26,205 351 41,308 515 2,623 142,625 30,512 34,331 124,936 24.311 30,972 207,468 180,219 59,271 2,644 50,549 5,525 30,117 59,373 1.834 31.050 3.972 30,396 148,106 126,625 25,346 256 6,006 31,608 16.616 16,616 were 45 150 195 5. NET LONG TERM LIABILITIES Total long term liabilities incurred by the municipality and outstanding at the end of the year amount to $196,797 6. CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS Some capital outlay does not represent a burden on general municipal revenues, as it is to be recovered in future years from other sources: Municipal enterprises - Zurich Waterworks $154,000 7. CONTRACTUAL OBLIGATIONS Sewage Service Agreement The Village of Zurich has entered into an agreement with the Ministry of the Environment to provide a service of treatment and disposal of Sewage. The Village of Zurich will be Charged on the following basis: (1) A gallonage charge which in 1975 was 59.3 cents per one thousand gallons, for a total charge in 1975 of $10,940. (2) All sums received by the Village of Zurich as sewage rates upon owners and occupants of land which in 1975 was $19,311. 33,933 30,666 The gallonage charge is financed by a sewage surcharge on the water billings 477 34,410 30,666 214,124 173,907 4,044 (10,700) (5,154) 118 (10,635) (104) 39 (4,044) (10,700) STATEMENT OF CAPITAL FUND OPERATIONS for the year ended December 31, 1975 Unfinanced capital outlay (Unexpended capital financing) at the beginning of the year Capital expenditure General government Recreation and cultural services Total expenditure Capital financing Contributions from the revenue fund Other Total capital financing Unfinanced capital outlay (Unexpended capital financing) at the end of the year BALANCE SHEET as at December 31, 1975 Current assets Cash Accounts receivable Taxes receivable Capital outlay to be recovered in future years Current liabilities Temporary loans Accounts payable and accrued liabilities Net long term liabilities Reserves and reserve funds Accumulated net revenue (deficit) and unapplied capital receipts 1,712 500 58,540 8,212 44.114 102,654 8,212 6,500 3,600 500 3,600 7,000 100,766 1,712 33,996 79,440 4,412 32,712 15,475 5,458 117,848 53,645 297,563 205,932 415,411 259,577 145,240 31,000 47,136 28,302 192,376 59,302 196,797 204,220 30,282 6,755 (4,044) (10,700) 415,411 259,577 NOTES TO FINANCIAL STATEMENTS 1. ACCOUNTING POLICY a) Balance Sheet The Balance Sheet reflects the combined assets fund, capital fund, reserve funds, and the local bo Certain assets are not reflected as described in (b) and liabilities of the revenue ards. of this note. ILIN ummm vamp= mm Mt Mil 211 INIEMI OM r which in 1975 amounted to $13,400. 8. Accounting and reporting principles for Ontario Municipalities were changed in 1975. These policy changes included (1) the consolidation of local boards and (2) the over and under levies for school boards and county are no longer reflected as deferred revenue but shown as an allocation of surplus. The 1974 comparative amounts have been restated to reflect this new policy. The effect on the opening 1975 deficit was an increase of $65 from $10,635 to $10,700. WATERWORKS STATEMENT OF REVENUE AND EXPENDITURE for the year ended December 31, 1975 Accumulated net revenue (deficit) at the beginning off the year Expenditure Operations Water Supply Power and pumping Water transmission and distribution Administration Total operating expenditure Principal payments and interest charges on long term debt Principal payments and interest charges on long term debt Capital expenditure out of current revenue Total expenditure Revenue Sale of water Municipal contribution Fire protection Other revenue Total revenue Accumulated net revenue (deficit) at the end of the year WATERWORKS ANALYSIS OF REVENUE for the year ended December 31, 1975 1975 1974 5,184 11,922 448 1,056 6,857 5,856 3,788 2,338 4,929 6,179 16,022 15,429 17,130 17,400 944 1,356 34,096 34,185 20,319 16,717 9,141 8,902 1,650 1,650 4.614 178 35,724 27,447 6,812 5,184 Sale of Water Residential 16,698 16,717 Non-residential 3 621 Municipal Contribution 20,319 . 16,717 Frontage charges -under Ministry of the Environment agreements 8,910 8,902 8,910 8,902 Fire protection Own municipality Other revenue Rentals Installation and service charges Investment income Forfeited discounts and penalties Commissions on collection of sewage or other charges Total Revenue 111111 1911 1,650 1,650 1,650 1,650 831. 37 273 3,704 20 12 146 4,845 178 35,724 27,447