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Times-Advocate, 1978-06-22, Page 8Page 8 Times-Advocate, June 22, 1978 VILLAGE OF GRAND BEND AUDITOR'S REPORT 1977 To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Village of Grand Bend. We have examined the 1977 financial statements of the Corporation of the Village of Grand Bend which are listed on the attached Index except for the six year financial review. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests and other procedures as we con­ sidered necessary in the circumstances. In our opinion, these financial statements present fairly the financial position of the Village of Grand Bend as at December 31, 1977 and the results of its operations for the year then ended in accordance with accounting principles generally accepted for Ontario municipalities applied on a basis consistent with that of the preceding year. R.E. Holbrook & Partners Chartered Accountants Licence #821 Sarnia, Ontario April 4,1978 Reserve and Reserve Funds Statement of Continuity and Analysis of Year End Position for the year ended December 31.1977 Available at the beginning of the year for future municipal purposes................... REVENUE Contributions from the revenue fund ... Interest earned...................................... EXPENDITURE Transfers to the revenue fund Available at the year end for future municipal purposes..................... Statement of Revenue And Expenditure for the year ended December 31,1977 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................................. Recreation and cultural services................... Planning and development............................. Total expenditure............................................... Transfers Transfers to region or county.......................... Transfers to school boards .............................. Total transfers.................................................... Total expenditures and transfers....................... REVENUE BY PURPOSE Municipal purposes Taxation.......................................................... Payments in lieu of taxes................................ Ontario grants.................................................. Other grants.................................................... Fees and service charges................................ Other ............................................................... Revenue to pay for municipal purposes........... Region or county requisition Taxation.......................................................... Payments in lieu of taxes................................ Revenue to pay the region or county requisition School board requisition Taxation.......................................................... Payments in lieu of taxes................................ Revenue to pay the school board requisition .... Total revenue..................................................... Accumulated net revenue (deficit) at the end of the year........................................... Analysed as follows: General revenue.............................................. Region or county.............................................. School boards...'............................................... ASSETS Current assets Cash........................ Accounts receivable Taxes receivable .... Investments........... 1977 $ 110,051 12,015 2,579 14,594 20,511 20,511 109,248 104,134 Balance Sheet as at December 31,1977 Capital outlay to be recovered in future years...-......................... LIABILITIES Current liabilities Accounts payable and accrued liabilities Other current liabilities......................... Net long term liabilities....................... Reserves and reserve funds................ Accumulated net revenue (deficit) and unapplied capital receipts................ 1977 Budget $ 49,456 175,112 224,568 439,991 111,804 1,500 40,000 5,000 21,375 11,570 191,249 46,104 __175 46,279 171,410 ___396 171,806 409.334 Nil Nil 277,062 434,073 9,759 434,073 Statement of Capital Operation for the year ended December 31,1977 Unfinanced capital outlay (Unexpended capital financing) at the beginning of the year.......... CAPITAL EXPENDITURE General government Transportation services..................................... Environmental services..................................... Recreation and cultural services........................ Total expenditure............................................... CAPITAL FINANCING Contributions from the revenue fund................. Contributions from reserve funds and reserves.................................................... Total capital financing......................................... Unfinanced capital outlay (Unexpended capital financing) at the end of the year......... Current Assets Cash.................................. Taxes receivable.............. Investments..................... Other accounts receivable Capital outlay to be recovered in future vears...................../ Total......................................... Current liabilities Accounts payable and acrued liabilities .... Other current liabilities Net long term liabilities .................. Reserves and reserve funds Balance (or deficit) at the vear end .. Total.................................................... 1977 Actual $ 30,657 49,545 177,392 226,937 459,214 112,742 1,742 35.707 6,183 39,827 17,595 213,796 46,959 __151 47,110 176,866 ___544 177,410 438,316 9,759 5,693 742 3,324 9,759 9.641 9.641 285.796 104,134 RESERVES Working funds Analysis of Year-End Position as at December 31,1977 Reserve funds Cemetery........................ Road repair.................... Ministry of Environment Year end position of reserves and reserve funds............... ASSETS 60,500 60,500 60,500 60,500 13,035 16,621 13,978 43,634 109.248 104,134 Grand Bend Public Utilities Commission Water Balance Sheet December 31,1977 with comparison at December 31,1976 Current assets Cash........................ Accounts receivable Capital Outlay to be Recovered in Future Years Distribution system............................................ Total assets....................................................... LIABILITIES AND ACCUMULATED NET REVENUE Current liabilities Accounts payable............................................... Commuted payments........................................... Long term liability due Ministry of Environment Accumulated net revenue..................................... Total liabilities and accumulated net revenue . REVENUE Sale of water................................ Frontage and collection charges.. Fire protection charges............... Sundry........................................... Grand Bend Public Utilities Commission Electricity Statement of Revenue and Expenditure for th- • year ended December 31,1977 with comparisons for tlie year ended December 31,1976 REVENUE Residential service........................ Commercial service....................... Street lighting................................. Total service revenue.................. Other income...................................... Total revenue............................. EXPENDITURE Power purchased............................ Operations and maintenance......... Administration............................... Depreciation................................... Total expenses ............................ Net income for the Vear (deficit) ASSETS 1977 $ 1976 $ 136,855 95,628 7,722 240,205 12,552 252,757 183,066 22,292 30,442 8.688 244J88 8,269 Grand Bend Public Utilities Commission Electricity Balance Sheet December 31.1977 with comparisons at December 31. 1976 Current assets Cash on hand and in bank Accounts receivable...... Inventories..................... Fixed assets Land..................................................... * Buildings.............................................. Plant and equipment........................... Transmission and distribution system Less accumulated depreciation 41,555 8,964 7,163 57,682 108,506 77,857 5,277 191,640 10,442 202,082 14,261 16.072 5,224 35,557 12,516 5,689 18,205 277,062 11,977 307,264 6,486 12,765 277,062 10,951 307,264 Grand Bend Public Utilities Commission Water Statement of Revenue and Expenditure for the year ended December 31.1977 with comparisons for the vear ended December 31.1976 1977 $ EXPENDITURES Purchased water..................................... Principal and interest on long term debt Maintenance of system .......................... Administration........................................ Net revenue for the year.... Accumulated not revenue at the beginning of the year Accumulated net revenue at the end of the year......... 13,938 2,142 16,652 16,652 16,652 Nil 39,792 29,281 Nil GmndcBend 'CORPORATION OF THE VILLAGE OFGRAND BEND, ONTARIO Analysis of Assets and Liabilities as at December 31.1977 revenue fund $ 48,832 14,072 45,359 capital fund $ revenue funds $ 108,263 108.263 277,062 277,062 48.748 48.748 48.748 15,504 22,500 38.004 60,500 9.759 108,263 277,062 48,748 48.748 68,487 16,850 18,077 __152 103,566 38,446 -31.397 1.862 20,830 92,535 11,031 (80) 10,951 593 3,288 3,881 285,796 11,997 301,674 3,193 12,765 285,796 (80) 301,674 46,502 16,850 13,310 2,109 78,771 20,466 (80) Other asset Due from village for street lighting Total assets-................................. LIABILITIES AND EQUITY Current liabilities Accounts payable............................ Other current liabilites.................. Equity Debentures redeemed Contributed capital ... Retained earnings..... Total liabilities and equity 3,832 211,325 4,967 197,642 19,806 25,556 83.326 102,443 1852769 211.325 16,234 4,870 21,104 83,326 1,498 91,714 176,538 197,642 Notes to the Financial Statements 1. Significant Accounting Policies (a) Basis of Consolidation These financial statements reflect the consolidation of the revenue fund, capital fund, reserve funds, and the Grand Bend Recreation Committee. The Grand Bend Public Utilities Commission (Electric and Water) is not con­ solidated except to the extent of their related net long term liabilities and capital outlay to be recovered in future years. The financial statements of the commission appear separately. (b) Fixed Assets The historical cost and accumulated depreciation of fixed assets is not reported for municipal purposes. Instead tne “Capital outlay to be recovered in future years’’ which is the principal portion of unmatured long term liabilities is reported on the Balance Sheet. This amount is $277,062 (1976: $285,796) and is the amount due to the Ministry of the Environment under the water service agreement which will be recovered from the water supply system in future years. 2. Charges for Net Long Term Liabilities Total Charges for long term liabilities recovered from the water supply system for 1977 with comparisons for 1976 are: Contributions to the Ministry of the Environment sinking fund and debt retirement fund.............................. Interest............................................... 1977 1976 Accordingly these charges are reflected in the financial statements of the water supply system. 3. Reserve Funds Interest income of $4,253 (1976: $2,579) was credited directly to the reserve fund without being recorded in the revenue fund. consolidated total $ 48,832 14,072 45,359 48.748 157.011 * 277.062 434.073 (All dollar amounts are in thousands of dollars, except per capita figures.) SIX-YEAR FINANCIAL REVIEW Not subject to audit * 197219771976197519741973 1. Population at the end of the year.831 818 818 779 749 740 2. Area in acres at the end of the year.480 480 480 480 480 480 3. Employees—continuous full time 3 3 3 2 2 2 —part time 4 3 2 1 1 1 4. Number of households 238 234 234 224 210 209 5. Assessment Taxable assessment upon which the year’s rates of taxation were set Residential and farm $1,573 $1,569 $1,557 $1,545 $1,538 $1,510 Commercial and industrial 352 358 376 377 379 395 Business 118 120 125 125 126 135 Total $2,043 $2,047 $2,058 $2,047 $2,043 $2,040 Per capita $2.5 $2.5 $2.5 $1.9 $2.7 $2.8 Commercial and industrial, and business as a percentage of taxable assessment 23.0%23.4%24.3%24.5%24.7%26.0% Exempt assessment $89 $89 $89 $89 $89 $89 Provincial equalization factor 17.6 17.6 17.6 17.6 17.6 17.6 6. Rates of taxation Residential and farm mill rate for general municipal purposes 42.8 46.2 46.3 57.9 56.0 43.3 for region or county purposes 21.6 25.0 23.3 23.3 20.5 18.1 for school board purposes 82.6 74.5 60.4 53.5 51.2 47.6 Total 147.0 145.7 130.0 134.7 127.7 109.0 Commercial and industrial mill rate - total 167.5 160.0 140.0 144.6 135.6 .117.0 7. Revenue for general municipal services Taxation $112 $116 $117 $122 $117 $91 Payments in lieu of taxes .2 10 1 1 Ontario grants 36 40 36 29 26 16 Other grants 6 7 7 6 6 5 Fees and service charges 40 31 24 12 11 7 Other 18 30 24 28 17 13 Total $214 $234 $209 $198 $177 $132 8. Tax arrears—per capita $55 $74 $67 $51 $58 $80 —percentage of current levy 12.8%17.8%17.6%18.4%15.1%26.2% 9. Expenditure—general municipal $232 $222 $208 $151 $186 $140 10. Transfers to the region or county $50 $53 $52 $44 $40 $37 11. Transfers to school boards $177 $160 $128 $114 $107 $102 12. Net long term liabilities General municipal activities --••• Municipal enterprises $277 $286 $294 $301 $340 $353 13. Charges for net long term liabilities General municipal activities --••- 14. Capital financing during the year Contributions from own funds $17 $40 $25 $5 $5 $1 Total $17 $40 $25 $5 $5 $1 15. Capital expenditure during the year $17 $40 $25 $5 $5 $1 16. Accumulated net revenue (deficit) at the end of the year $10 $30 $34 tt$26 $(25)$(23) 17. Reserves and reserve funds $109 $104 $110 $92 $81 $75 The corhparative figures for 1972 to 1976 have been restated to give effect to the revisions required by the Ministry of Treasury, Economics and Intergovernmental Affairs for the years 1975, 1976 an$l 1977. ■ ........... ' ...........:..■' ......-........- 1 . ................... - . ...n