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The Lucknow Sentinel, 1983-05-25, Page 11Lucknow Sentinel, Wednesday, May 25, 1983 -Page 11 �SHFIELD S REPORT RESERVE AND RESERVE FUNDS STATEMENT OF CONTINUITY AND ANALYSIS OF YEAR END POSITION FOR THE YEAR ENDED DECEMBER 31, 1982 Available at the beginning of the year for future municipal purposes Revenue Contributions from the revenue fund Contributions from developers 0.H.R.P. grants Interest earned Expenditure Transfers to the capital fund Transfers to the revenue fund 0.H.R.P. loans forgiven Available at the year end for future municipal purposes 1981 Actual S 108,201 8,000 15,000 1,558 24,558 480 2,650 3,130 129 ,629 ANALYSIS OF YEAR-END POSITION AS OF DECEMBER 31, 1982 Reserves Working capital Reserve funds Parkland reserve 0.H.R.P. reserve Year end position of reserves and reserve funds 1082 Actual f 1981 Actual 1 95,401 81,401 95,401 87,401 2,933 2,594 46,510 39,634 49,443 ‘ 42,228 144,844 129,629 -_ NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 1982 1. ACCOUNTING POLICIES (a) Statement of Revenue and Expenditure: This statement reflects the revenuesand expenditures of the revenue fund. There are no local boards or municipal enter - prices consolidated in these results. (b) Statement 'of Capital Operations: This statement reflects the capital expenditure of the municip- ality to be recovered from the general municipal revenue of the municipality. (c) Balance Sheet: This statement reflects the assets and liabilities of the revenue fund, the capital fund and reserve funds. (d) Fixed Assets i The historical cost and accumulated depreciation of fixed assets is not reported for municipal purposes. Instead, the "Capital Outlay to be Recovered in Future Years" which is the aggregate of the principal portion of unmatured long term liabilities, capital funds transferred to other organizations, and the cost of capital projects not yet permanently financed is reported on the Balance Sheet. (e) Municipal Enterprises: There are no municipal enterprise, activities carried on by the municipality. (f) Charges for Net Long Term Liabilities: Debt retirement costs including principal and interest are charged against current revenues in the periods in which they are paid. Interest charges are not accrued for the periods from the dates of the latest interest payments to the end of the financial year. 2. CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS (a) Some capital outlay to be recovered in future years does not represent a burden on general municipal revenues, as it is to be recovered in ,future years from other sources: 1982 1981 Special charges on benefitting landowners $1,233,819 $1,119,808 (b) Capital outlays, including fixed assets and the transfers of capital funds in the amount of $150,933, which have been financed from general municipal revenues of the current year, are reported on the Statement of Revenue and Expenditure. 3. RESERVE FUNDS Dur:.ng the year, $17,414 was credited directly to reserve funds without being recorded as revenues and expenditures of the Revenue Fund. Major sources were: Interest income 0.H.R.P. grants 4. NET LONG TERM LIABILITIES 1982 8 2,414 15,000 $ 17,414 1981 $ 1,558 15,000 $ 16,558 The balance for net long term liabilities reported on the Balance Sheet is made up of the following: Total long term liabilities incurred by the municipality including those incurred on behalf of former school boards, other municipalities and municipal enterprises and outstanding at the end of the year amount to Of the long term liabilities shown above, the responsibilities for payment of principal and interest charges has been assumed by others for a principal amount of $1,274,464 147,000 Net long term liabilities at the end of the year $1,127,464 5. ACCUMULATED NET REVENUE (DEFICIT) AT THE END OF THE YEAR T he (to balance in the revenue fund at be added to) the levies of the the year end is available to reduce following classes of ratepayers: 1982 1981 General ratepayers $ 5,542 $ 29,011 Designated ratepayers 140 School board ratepayers (61) (10) Region ratepayers 8 (19) Special charges 21,491 22,158 $ 27,120 $ 51,140 6. CHARGES FOR NET LONG TERM LIABILITIES Total charges for the year for long term liabilities were as follows: 1982 1981 Principal payments Interest $133,483 69,788 $112,488 52,327 8203,271 $164,815 The total charges shown above were paid from general municipal revenues of the municipality and are included in expenditure on the Statement of Revenue and Expenditure classified under the appropriate functional headings. 7. LIABILITY FOR VESTED SICK LEAVE BENEFITS Under the sick leave benefit plsn, unused sick leave can accumulate and employees may become entitled to a cash payment when they leave the municipality's empioyment. The liability for these accumulated days, to the extent that they have vested and could be taken in cash by an employee on terminating, amounted to $1,744 at the end of the year. No provision has been made in the accounts for this liability.