HomeMy WebLinkAboutThe Huron Expositor, 1990-06-13, Page 8Op
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THE CORPORATION OF THE TOWN OF SEAFORTH
To the Members of Council, Inhabitants '
and Ratepayers of the Corporation of
the Town of Seaforth
We have examined the consolidated balance sheet of the Corporation of the
Town of Seaforth as at December 31, 1989 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 necessary in the circumstances.
In our opinion, these consolidated financial statements present fairly the
financial position of the Corporation of the Town of Seaforth an at December
31, 1989 and the results of its operations for the year then ended in
accordance with the accounting principles disclosed in note 1 to the
financial statements applied on a basis consistent with that of'rhe preceding
year.
London, Ontario
?larch 13, 1990.
CiZ
Chartered Accountants
Licence No. 1239
CONSOLIDATED STATEMENT
OF PERATIONS
for the year� ed December 31, 1989
SOURCES OF FINANCING:
Taxation end, user. charges
Residential and farm taxation
Commercial, industrial and
business taxation
Taxation from ocher governments
User chatgea and fees
Grants
Government of Canada
Province of Ontario
Other municipalities
Other
Investment income
Other
Deduct: Amounta received or receivable
for county and school boards
Net appropriations from reserves and
reserve funds
O THE
FUND BALANCE AT THE 88CINNI80
YEAR (Note 7)
To be used to offset taxation or
user chargee
Budget Actual Actual
1989 4989 1988
$ 882,189 ;9 887,542 $ 796,680
497,539 499,989 454,881
31,500 33,849 31,248
265,771 216,812 226,649
1,200 2,396 2,836
573.238 548,833 535,632
32,006 39,882 35,207
6,000 23,095 12,325
55,937 62,992 39,550
(647,463) (676,026) (589,969)
12,854
it
54,491 54,491 104,731
oral financing available during the year $1,752,408
51,706,709 91,649,770
Budget
1989
APPLIED TO:
Current operations
General government
Protection to person. and $ 269,315
Transportation services pr°pe rty 304,353
Environmental services 241,295
Health services 211,,130130
Social and family services 200
Recreation and cultural services1,800
Planning and development 137,972
Capital
General government
Protection to persons and property
Transportation services
Environmental eervicea
Recreation and cultural eervicea
Planning and development
Net appropriations to reserves and
reserve funds
MUNICIPAL FUND BALANCE AT IBE BNB OF
THE TEAR (Note 7)
To be used to offset taxation or
user charges
Total applications during the year
91.575
1.264.640
54,800
39,241
198,950
73,062
34,315
70-,000
470,368
17,400
Actual
1989
$ 246,017
313,327
248,791
212,058
100
1,140
135,285
_82.372
Actual
1988 .
$ 254,031
296,262
229.574
193,129
25
1,670
141,525
86.650
1239 090 d.202 866
49,752
35,353
185,101
;47,894
25,026
45 684
388,810
44,368
18,405
212,688
49,665
4,189
NIG
fob a brief
Shawnand
wit co
trio =spud
He w
Ott► was empl4Yed by MF
Twpsb�p He,�jyasa�mberu
Sbtan Chuteh.
Ut McKay is asujy: bylus-
9 ®► 'pamcclia i
494 he was Mended .o
>t 1985 stir ttipg arse
,li�tlicr aAd #[usband,
� .of Wilutltan:. son .
��.t ghaat R.4174,,78.°'
eerend, #at a�c$pad
n of Toronto Pfpetapag
and .` Y d cawr E4
S h Znnmet .and ?oug'
were Art
Sa�ongrGo�dRn 1a. , n and Harold
d e ante ant . Wangham
EplyA `,MCLELLAN
Mrs EdnaHae (Shong) Mui ellan
died .an Thursday, June 7, 1990 at
the Queensway , 1j1ineiag Home,
Renal!. She was 87.
The wife of the late Joseph Ernest
McLellan, she was the mother of
Lois and her husband Clarence
Daclulrme of Kitchener and. Ken
and his wife Merit of Kipper.
POM in. Grey Township,, AnriI '011440$0111-
9 1936
*KW and the feint* 140,417 Charien eJ and wtf
m , his elententery education sends were ;craned :at the
Ln
wet Drstta day,
Secondary School. 1 June 8 when, fund ser -
n • he was Wes were held et t30 p.m.,
wnpitiyed by the townitad pier to Reverend John P. Van* of Win -
a ha wag . OW Of the late, htlgte,, is
also, survived
6 01.
of V[►ingha p. He Wit'8llantr :and fOvB,gmndc
•scA , i7) Township and at ended MOBIloley Funeral Home' until
She was b�,ttMIG
brother, ate d, and fob gtate{at.
t�Fo moa ,Izeal
She is also la(rviyud) ibypr
granehldre11 and
two
BrauV,dchdth+s9R:
ta4ptt .tegic , place a
Michael P. Q.eConnor Futteral
Mme, Jensali chapel, on Sunday,
June 10 where funeral service$ were;
Jield on Monday ut , �!�!+:
vanedOnnRobmson'of ale
interment 111#10401v4 Cerate t.
Seaforth. As exAresslons ofl°lym-
pathy. donations to the tie and.
Stroke Foundation of Oiatarlb,,gr
the Mzheimers Society tvoal l:'
be appreciated by the famiiyx:... j...
6,.
SOWN OFSEAFO - TH
AUDITOR'S REPORT
LIABILITIES
Bank indebtedness
Accounts payable and accrued liabilities
Net long-term liabilities (Note 6).
FUND BALANCES AT THE END OF THE YEAR
To be used to offset taxation or user
charges (Note 7)
Reserve (Note 8)
Reserve funds (Note 8)
$ 21,406 $ -
150.865 139,412
172,211 139,412
180.000 194,000
78,809 54,491
47,923 76,710
164,766 148.832
291.498 280,033
$643,769 $613,445
NOTES TO THE
FINANCIAL STATEMENT
December 31, 1989
1. Accounting Policies
The consolidated financial statements of rhe Corporation are the
representation of management prepared in accordance with accounting
policies prescribed for Ontario Municipalities by the Ministry of
Municipal Affairs. Since precise determination of many assets and
liabilities 1e dependent upon future events, the preparation ofperiodic
financial statements necessarily involved the use of estimates and
approximations. These have been made using careful judgements.
(a) (0) Basis of Consolidation
These consolidated statements reflect the assets, liabilities, sources
of financing and expenditures of the revenue fund, capita( fund, reserve
funds lude the
Councilnand .the vfollowing es and cboard, municipal ienterprises es of allnand[tees utilitof
ies
which are under the control of Council:
Seaforth Bualness Improvement Area
All interfund assets and Liabilities and sources of financing and
expenditures have been eliminated with the exception of loans or
advances between reserve funds and any other fund of the municipality
and the resulting interest income and expenditures.
(!i) Non -Consolidated Entities
The following local boards, joint local boards, municipal enterprises
and utilities are not consolidated:
Seaforth and District Community Centres Management Committee
- Seaforth Area Fire Department
- Seaforth Public Utility Commission - Waterworks Department
Seaforth Public Utility Commission - Electrical Department
(iii) 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
are4not reflected.ln the municipal fund balance of these financial
statements. 0verleviea (underteviee) are reported on the Consolidated
Balance Sheet se "other current liabilities" ("other current assets").
Iv) ,Trust Funds
Trust funds and their related operations administered by the
municipality are not consolidated, but are reported separately on the
Trust Funds Statement of Continuity and Balance Sheet.
(b) Basis of Accounting
(1) Accrual Basis
Sources of financing and expenditures are reported on the
accrual basis of accounting with the exception of principal charges on
long term liabilities which are charged against operations in the' periods
In which they are paid.
(ii) Revenue Recognition
The accrual basis of accounting recognizes revenues as they
become available and measurable; expenditures are recognized as they are
incurred and measurable as a result of receipt of goods or eervicea and
the creation of a legal obligation to pay.
(111) Fixed Assets
329.315 The historical cost and accumulated depreciation for fixed
tweets are not recofded for municipal purposes. Fixed assets are
reported as 'an expenditure on the 'Consolidated Statement of Operations in
63,098 the year of &equitation.
78 009 _54.491
$1,752,408 $1,706,709 91,649,770
tetevvAteetet
CONSOLIDATED BALANCE SHEET
as at December 31, 1989
ASSETS
Unrestricted
Cash
Taxes receivable
Accounts receivable
Other Current assets
Resttirted
Cash
Accounts receivable
Due from revenue fund
Capital outlay financed by long-term hiabilities
and to be recovered In future yearn (Note 1(b)(0))
1989 1988
$ - $ 36,644
119,570 88,898
142,734 142,182
36.699 -2.869
299.003 .,2706 3
161,680 147,888
1,289• 944
•797 _10.01 148.032
180.000- _man
06'41,760 9613,445
m
oit.
2.
(iv) Capital Outlay t6 be Recovered in Future Years
"Capital outlay to be recovered in future years," wpich
represents the outstanding principal portion of unmatured long term
liabilities for municipal'expenditurea or capital funds transferred to
other organizations, is reported on the "Consolidated Balance Sheet."
operations of the School Board. and the County of Baron
Further to note 1(e)(ilt), the taxation, other revenues, xpendltures and
overlevies (underteviee) of the school boards and the County of Huron are
cooprleed of the following:
Taxation
Payments in lieu of taxes
School
Boards gamy
$490,894 $152,384
24,916 9.524
515.810 16,1 908
Regpiaitions 509,514
Supplementary taxes 6.967 159,839
2.075
•
(Underleviee) for the year
Overlevies (underteviee) at the beginning
of the year
Overlevien (underlevies) et the end
of the year
516,481 161.908
(671) -
8.152 33)
7 ( $ 7,481 $ (33)
9.
II
•
8.
3. Contributions to Unco.eglidated Joint Boards
Further to note 1(a)(ii), the following contributions were made by the
municipality to there unconsolidated joint boards:
Seaforth and District Community Centres
Management Committee
Seaforth Area Fire Department
4. Trust Funds
Trust funds administered by the municipality amounting to $120,661 (1988 -
$120,585) have not been included in the Consolidated Balance Sheet nor
have their operations been included in the Consolidated Statement of
Operations.
1989 1988
$ 33,844 $ 44,481
27,503 24,349
$ 61,347 $ 68,830
5. Pension Agreement
The municipality makes contributions to the Ontario Municipal Employees
Retirement Fund (0.M.E.R.S,), which is a multi-employer plan, on behalf of
16 members of its staff. The plan is a defined benefit plan which
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
for current contributed
Lt
and lo included • as for1989
!expenditure on $32,135(1988
9Consolidated)
Statement of Operations.
6.
Net Long Term Liabilities
(a) The balance of net long-term liabilfeiea •
reported on the
Consolidated Balance Sheet" ie made up of the following:
Total long term liabilities incurred by the
municipality including those incurred on
behalf of school boards, other
municipalities and municipal enterprises
and outstanding et the year end amount to
Net long-term liabilities at the
end of the year
1989 1988
$180,000 $194,000
$180,000 $194,000
b) Of the net long-term liabilities reported in (a) of this note,
$100,000 in principal payments are payable from 1990 - 1994, $87,000
from 1995-1999 and are sumwarized as follows:
c)
1990 1995
to to
1994 1999
From general municipal revenues
43,000
From unconsolidated municipal enterprises $ 50.000 $ 63,000
_25, 000
S 93,000 $ 87,000
App
val
f the
o
ipal
otaied for the
longoterm liabilities l in M(a)c issued Board
thea name beenot tithe nmunicipality,
Municipal Fund Balance at the End of the Year
The Municipal Fund Balance on the "Consolidated Statement of Operatiora"
of $78,809 (1988 - $54,491) is comprised of the following:
1989 1988
For general reduction of taxation or
user charges
Reserve and Reserve Funds
a)
S 78,809 $ 54,491
The total balance of reserve and reserve funds of $212,689 (1988
$225,542) respectively are made up of the following;
1989 1988
Reserve set aside for specific purpose by
Council - for working capital
Total reaerve '
Reserve funds set aside for specific purpose
by Council - for industrial development
- for working capital
- for heritage
- for business improvement
- for short term disability
Total reserve funds
S 47,923 /2_6,112
$ 47,923 $ 76,710
S 40,961
90,058
13,993
8,153
11,601
S 37,098
76,469
10,507
19,803
4,955
$164,766 $148,832
Chargers 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:
1989 1988
Principal
Interest $ 7,000 $ 6,000
7.215 7,800
514,215 $13,800
10. Non -Accrual of Ietoreat on Long -Tern Liabilities
No provision has been made in these financial etatemente for the accrual
of interest on the net long-term liabilities. Had this proviafon been
made, municipal fund balances a6 at December 31, 1989 would have
decreased by $4,620 (1988 - $4,975).
11. Contractual Obligation -
Minintry of the Environment
In actoadance with sevi
with the Minlerry .•�.,+
and operated by the P et
operating costa and repay
Project.
ce agreement entered into by the Town in 1975
nvlr,nment, the e'lnting sewage system is owned
to Th, Town 19 obligated to meet all
r e long-term liabilities related to thin
Included in the "Consolidated Statement of Operations" are the 1989
chargee from the Ministry of S 20,696. The Consolidated Balance Sheet"
does not reflect any assets or llabilitlee pertaining to the sewage
eyetem except to the extent of service chargee due to rhe Ministry.
Information received from the Ministry is at March 31, 1989 indleatee the
following:
Accumulated net surplus
Debt chargee
T6tai outstanding long-term liabilities
1989 1988
9275,787
9 75,382
9760,743
$263,553
$ 75,382
9768,919