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HomeMy WebLinkAboutThe Huron Expositor, 1990-06-13, Page 8Op PQsfTQR, J,UNI , 1:STJ4 LISii�IR cIYER ogi MICNA_11. MONO 193 HIGH sum, CLINTON 4u#9.412-9441 Res.; 40;4104 Maiming sppotntnrafflj evalla`le fst fare west of, Kippeh 006,13-8 Weathee and $u Ong for ". �-1u 'Ag' ng PJck lig inhor nation cal 2613•..64.14: 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