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HomeMy WebLinkAboutTR-44-94 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE & ADMINISTRATION COMMITTEE File# Gate: June 20, 1994 Res• �' '� ' _ -� Report##: TR-44-94 File#: Sy-Law Subject: 1993 AUDIT REPORT AND RELATED MANAGEMENT LETTER Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That report TR-44-94 be received; 2 . That the Financial Statements for the year ended December 31, 1993 (under separate cover) be adopted; 3. That recommendations contained in the management letter be reviewed by staff and addressed appropriately; and 4. That the firm of Deloitte and Touche be retained as the Municipality's Auditors for the 1994 year end audit. BACKGROUND & COMMENTS 1.0 The 1993 year end has now been completed and a representative of Deloitte & Touche is in attendance to present this Report. Any queries with respect to the Audit and the Management Letter should be directed to his attention at this time. 2 .0 Staff are continuing in their efforts to increase and improve internal controls and the auditor's comments reflect this . The areas identified as requiring fine tuning are areas that previously were not able to be focused on from an audit perspective because other areas lacked the level of expertise that now has been achieved. 3.0 In 1992 report TR-6-92 recommended that the firm of Deloitte and Touche be retained for a five year period. Council passed the applicable by-law (copy attached as Schedule "A" ) which also directed that the appointment be reviewed on an annual basis. 3. 1 The knowledge and expertise of Deloitte and Touche with respect to the records and operations of the corporation adds to the PAPER «.«E THI$R PRIMEDO RECYCLED PAPER TR-44-94 Page 2 . efficiency of the audit and it allows valuable staff time to be available to devote to other priorities. If staff days available for work are reduced, the ever increasing work load will be completed over less time. Maximization of any available efficiencies will therefore be of considerable benefit to the Municipality. 3.2 In addition Deloitte and Touche agreed in 1992, to keep their fees at the same rate as the municipal mill rate in each of the years identified. This contribution was in recognition of the Municipality's focus on the budgetary restrictions during the current economic climate. 3.2 As indicated in Report TR-32-94, the auditors concur that the Municipality reflects a secure financial position as indicated in the financial statements. Respectfully submitted and Reviewed by recommended for presentation to the Committee ie A. Marano, H.BSc. ,A.M.C.T. W.H. Stockwell Treasurer Chief Administrative Officer NT/MAM/hjl . Attachment SCHEDULE "A" ( The Corporation of the Town of Newcastle By-law 92 - 45 being a by-law to appoint an Auditor for the Corporation of the Town of Newcastle and to repeal. By-law #74-15 WHEREAS Section 88 (1) of the Municipal Act, R.S.O., 1980, Ch WH H amended, by the Municipal Statute Law Amendment Act, 1991; g ives int "for a term of five years or less, Council the authority to appo . licensed under the Public Accounting one or more auditors who are Act"; AND WHEREAS it is necessary to appoint an auditor for the Corporation of the Town of Newcastle; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF NEWCASTLE ENACTS AS FOLLOWS: 1. THAT Deloitte & Touche is hereby appointed auditor for the Town of Newcastle for a term of five years, conditional on an annual review by Council, for the fiscal years ending December 31, 1992 to December 31, 1996 inclusive. 2. By-law Number 74-15 is hereby repealed. By-law read a first time this 10th day of February, 1992. By-law read a second time this 10th day of February, 1992. By-law read a third time and finally passed this 10th day of February, 1992. Mayor Clerk COPORATION OF THE MUNICIPALITY OF CLARINGTON (formerly the Corporation of the Town of Newcastle) 1993 Consolidated Financial Report and Auditors' Reports to the Members of Council, Inhabitants and Ratepayers INDEX CORPORATION OF THE MUNICIPALITY OF CLARINGTON DECEMBER 31, 1993 FINANCIAL STATEMENTS Code Number CONSOLIDATED FINANCIAL STATEMENTS Auditors' Report 1 Consolidated Statement of Operations 2 Consolidated Balance Sheet 3 Notes to the Consolidated Financial Statements 4 Consolidated Statement of Current Operations 5 Trust Funds Auditors' Report 6 Statement of Continuity 6-1 Balance Sheet 6-2 Notes to the Trust Funds Financial Statements 6-3 LOCAL BOARDS Public Library Board Auditors' Report A Consolidated Statement of operations A-1 Consolidated Balance Sheet A-2 Consolidated Statement of Changes in Financial Position A-3 Notes to the Consolidated Financial Statements A-4 Analysis of Current Operations A-5 Board of Management for the Bowmanville Central Business District Improvement Area Auditors' Report B Statement of Operations B-1 Balance Sheet and Notes to the Financial Statements B-2 Board of Management for the Newcastle Central Business District Improvement Area Auditors' Report C Statement of Operations and Balance Sheet C-1 Notes to the Financial Statements C-2 Board of Management for the Orono Central Business District Improvement Area Auditors' Report D Statement of Operations and Balance Sheet D-1 Notes to the Financial Statements D-2 1 Deloitte & buche 0, Bank of Commerce Building Telephone: (416) 579-8202 2 Simcoe Street South Toronto area: (416)686-8249 P.O. Box 800 Telecopier: (416) 579-3388 Oshawa, Ontario L1 H 7N1 AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) : We have audited the consolidated balance sheet of the Corporation of the Municipality of Clarington as at December 31, 1993 and the consolidated statement of operations for the year then ended. These financial statements are the responsibility of the Municipality's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Municipality as at December 31, 1993 and the results of its operations for the year then ended in accordance with accounting principles disclosed in Note 1 to the financial statements. Chartered Accountants April 29, 1994 2 MUNICIPALITY OF CLARINGTON CONSOLIDATED STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1993 Actual 1993 Actual 1992 SOURCES OF FINANCING Taxation and user charges Residential and farm taxation $44,999,163 $41,686,737 Commercial, industrial and business taxation 10,340,751 10,407,361 Taxation from other governments 2,178,360 1,710,763 User charges 2,825,658 2,828,624 Deduct - Amounts received or receivable for region and school boards (Note 2) (41,908,961) (39,537,328) Grants Government of Canada 5,103 3,801 Province of Ontario 3,861,232 3,895,054 Other Municipalities 5,836 - Other Contributions from developers 2,113,334 2,930,336 Investment income 1,394,022 1,842,945 Sale of land and equipment - 20,098 Penalty and interest on taxes 1,121,954 908,018 Fines 5,252 2,424 Recreational land - cash-in-lieu 82,258 127,718 Donations and contributions from others 7,715,282 575,977 Proceeds from issue of long term liabilities 400,000 - MUNICIPAL FUND BALANCES, BEGINNING OF YEAR (Note 7) To be used to offset taxation or user charges 2,350,652 2,484,907 Unexpended capital financing 92,183 85,930 TOTAL FINANCING AVAILABLE DURING THE YEAR $37,582,079 $29,973,365 APPLIED TO Current operations (Note 9 and 11) General government $ 3,536,676 $ 3,500,096 Protection to persons and property 2,705,302 2,698,131 Transportation services 5,623,961 5,087,654 Environmental services 1,182,219 1,167,253 Health services 104,191 121,060 Recreation and cultural services 4,576,897 4,447,980 Planning and development 1,525,463 1,469,999 19,254,709 18,492,173 Capital General government 805,534 229,453 Protection to persons and property 34,437 50,711 Transportation services 4,058,588 3,584,447 Environmental Services - 4,250 Health services 14,642 18,413 Recreation and cultural services 642,238 1,013,696 Planning and development 86,767 191,386 5,642,206 5,092,356 NET APPROPRIATIONS TO RESERVES AND RESERVE FUNDS 9,983,891 3,946,001 DEVELOPMENT CHARGES TRANSFERRED TO HYDRO COMMISSION 164,181 - (NOTE 12) MUNICIPAL FUND BALANCES, END OF YEAR (Note 7) To be used to offset taxation or user charges 2,518,706 2,350,652 Unexpended capital financing 18,386 92,183 TOTAL APPLICATIONS DURING THE YEAR $37,582,079 $294973,365 The accompanying notes are an integral part of this financial statement. 3 MUNICIPALITY OF CLARINGTON CONSOLIDATED BALANCE SHEET DECEMBER 31, 1993 1993 1992 ASSETS UNRESTRICTED Cash $ 6,651,365 $ 4,638,845 Taxes receivable 7,801,366 6,328,599 User charges receivable 732,360 599,961 Accounts receivable 1,122,576 840,295 Other current assets 426,633 487,902 RESTRICTED 16,734,300 12,895,602 Cash 24,810,657 15,917,598 Due from own funds 952,313 665,380 Accounts receivable 662,461 574,617 261425,431 17,157,595 CAPITAL OUTLAY FINANCED BY LONG-TERM LIABILITIES AND TO BE RECOVERED IN FUTURE YEARS (Note 1(b) ) _5,072,333 5,005,682 $48,232,064 $35,058,879 LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 3,884,226 $ 1,892,069 Other current liabilities 4,2831496 3,247,267 8,167,722 5,139,336 NET LONG-TERM LIABILITIES (Note 6) 5,072,333 5,005,682 CONTINGENCIES (Note 10) FUND BALANCES, END OF YEAR To be used to offset taxation or user charges (Note 7) 2,518,706 2,350,652 Unexpended capital financing (Note 7) 18,386 92,183 Reserves (Note 8) 6,029,486 5,313,431 Reserve funds (Note 8) 26,425,431 17,157,595 $48,232,064 $35,058,879 The accompanying notes are an integral part of this financial statement. 4 MUNICIPALITY OF CLARINGTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1993 1. ACCOUNTING POLICIES The consolidated financial statements of the 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 is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgments. (a) ( i) Basis of Consolidation These consolidated financial statements reflect the assets, liabilities, sources of financing and expenditures of the revenue fund, capital fund, reserve funds and reserves and include the activities of all committees of Council and the following local boards, which are under the control of Council: - Clarington Public Library Board - Clarke Museum and Archives - Bowmanville Museum Board - Board of Management for the Bowmanville Central Business District Improvement Area - Board of Management for the Newcastle Central Business District Improvement Area - Board of Management for the Orono Central Business District Improvement Area - Orono Arena and Community Centre Board - Newcastle Arena Board - Newcastle Community Hall Board All interfund assets and liabilities and sources of financing and expenditures have been eliminated with the exception of loans or advances between the reserve funds and any other fund of the municipality and the resulting interest income and expenditures. ( ii) Non-consolidated Entity These consolidated financial statements do not include the assets, liabilities, sources of financing and expenditures of the Clarington Hydro Electric Commission. Accounting for Region and School Board transactions The taxation and other revenues, expenditures, assets and liabilities with respect to the operations of the school boards and the Region of Durham are not reflected in the "Municipal Fund Balances" of these financial statements. Overlevies (underlevies) are reported on the "Consolidated Balance Sheet" as "other current liabilities" ("other current assets") . ( iv) Trust funds and their related operations administered by the municipality are not consolidated, but are reported separately on the "Trust Funds Consolidated Statement of Continuity and Consolidated Balance Sheet". 4-1 MUNICIPALITY OF CLARINGTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1993 1. ACCOUNTING POLICIES (continued) (b) Basis of Accounting ( i) 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) 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 services and the creation of a legal obligation to pay. (iii) Fixed Assets The historical cost and accumulated depreciation for fixed assets are not recorded for municipal purposes. Fixed assets are reported as an expenditure on the "Consolidated Statement of Operations" in the year of acquisition. (iv) Capital Outlay to be Recovered in Future Years "Capital outlay to recovered in future years," which represents the outstanding principal portion of unmatured long-term liabilities for municipal expenditures or capital funds transferred to other organizations, is reported on the "Consolidated Balance Sheet". 2. OPERATIONS OF SCHOOL BOARDS AND THE REGION OF DURHAM Further to Note 1 (a) (iii), the taxation, grants, other revenues, expenditures and overlevies (underlevies) of the school boards and the Region of Durham are comprised of the following: School Boards Region Taxation and user charges $31,806,942 $10,102,019 Requisitions 31,798,648 11,286,808 Overlevies (underlevies) for current year $ 8,294 $(1,184,789) Overlevies, beginning of year 7,352 1,343,951 Overlevies, end of year $ 15,646 $ 159,162 3. TRUST FUNDS Trust funds administered by the municipality amounting to $340,712 (1992 - $313,883) have not been included in the "Consolidated Balance Sheet" nor have their operations been included in the "Consolidated Statement of Operations". 4. PENSION AGREEMENTS The municipality makes contributions to the Ontario Municipal Employees, Retirement Fund (OMERS), which is a multi-employer plan, on behalf of 179 members (1992 - 184 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 contributed to OMERS for 1993 was $421,188 (1992 - $433,066) for current service and is included as an expenditure on the "Consolidated Statement of Operations". 5. LIABILITY FOR VESTED SICK LEAVE BENEFITS During the 1993 fiscal year, the municipality negotiated an agreement to terminate the sick leave benefit plan which had been in effect for many years. The municipality agreed to pay to those employees covered by the plan and who had at least five years service with the Corporation a cash equivalent of 50% of sick leave days accumulated to July 1, 1993 to a maximum of 120 days of salary. Remuneration for the buying out of sick days identified will be available to the employee at any time up to the time that the employee either leaves the Corporation or retires, at the rate of remuneration in effect at July 1, 1993. The liability for remaining outstanding accumulated days, to the extent that they have vested and could be taken in cash by an employee on terminating, amounted to $210,450 (1992 - $542,941) at the end of the 4-2 MUNICIPALITY OF CLARINGTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1993 5. LIABILITY FOR VESTED SICK LEAVE BENEFITS (continued) year. An amount of $ nil (1992 - $257,894) has been provided for this past service liability and is reported on the "Consolidated Balance Sheet", included in reserves. An amount of $403,739 (1992 - $65,870) was transferred from the reserve to assist in financing payments made during the current year and is reported on the "Consolidated Statement of Operations" and is included in "Net appropriations to reserves and reserve funds". The anticipated payments over the next five years to employees who are eligible to retire are: 1994 1995 1996 1997 1998 Total $15,105 $19,390 - $34,495 6. NET LONG-TERM LIABILITIES (a) The balance of net liabilities reported on the "Consolidated Balance Sheet" is made up of the following: 1993 1992 Total long-term liabilities incurred by the municipality including those incurred on behalf of school boards, other municipalities and the Clarington Hydro Electric Commission and outstanding at the end of the year amount to $ 613,333 $ 303,512 In addition, the municipality has assumed responsibility for payment of principal and interest charges on certain long-term liabilities issued by other municipalities. At the end of the year, the outstanding principal amount of this liability is 6,132,377 5,810,426 Of the long-term liabilities shown above, the responsibility for payment of principal and interest charges has been assumed by school boards, the Clarington Hydro Electric Commission, and other municipalities. At the end of the year, the outstanding principal amount of this liability is (1,616,357) (1,021,426) Of the long-term liabilities shown above, the responsibility for payment of principal and interest charges for tile drainage and shoreline property assistance loans has been assumed by individuals. At the end of the year, the outstanding principal amount of this liability is ( 57,020) ( 86,830) Net long-term liabilities, end of year $54072,333 $5,005,682 (b) Of the net long-term liabilities reported in (a) of this note, $2,230,157 in principal payments are payable from 1994 to 1998; $2,842,176 from 1999 to 2003; 1994 1999 to to 1998 2003 From general municipal revenues $2,063,490 $2,775,510 From benefitting landowners 166,667 66,666 $2,230,157 $2,842,176 (c) Included in "Net long-term liabilities" on the "Consolidated Balance Sheet" is an amount of $32,869 (1992 - $47,249) payable in United States dollars, which was converted into Canadian dollars at the rate of exchange prevailing when the liability was incurred. If the liability is converted into Canadian dollars at the exchange rate prevailing at December 31, 1993, the liability would be increased by $9,713 (1992 - $11,295) . 4-3 MUNICIPALITY OF CLARINGTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - DECEMBER 31, 1993 6. NET LONG-TERM LIABILITIES (continued) (d) The long term liabilities in (a) issued in the name of the municipality have received approval of the Ontario Municipal Board for those approved on or before December 31, 1992. Those approved after January 1, 1993 have been approved by by-law. The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs. (e) The municipality is contingently liable for long-term liabilities with respect to tile drainage and shoreline property assistance loans, and for those for which the responsibility for the payment of principal and interest has been assumed by other municipalities, school boards and the Clarington Hydro Electric commission. The total amount outstanding as at December 31, 1993 is $1,673,377 (1992 - $1,108,256) and is not recorded on the "Consolidated Balance Sheet". (f) Included in "Net long-term liabilities" on the "Consolidated Balance Sheet" is a loan of $163,333 (1992 - $186,667) payable to Ministry of Municipal Affairs, and a loan of $70,000 (1992 - $80,000) payable to Ontario Hydro under the Ontario Housing Action Program. These loans which relate to the Courtice Storm Water Facilities Project, are interest free and repayable over fifteen years. Payments commenced in 1986. The funds to repay these loans are to be provided from a Prescribed Plan Annuity held by the Town, issued by the developers, pursuant to a development agreement. 7. MUNICIPAL FUND BALANCES AT THE END OF THE YEAR (a) The balances on the "Consolidated Statement of Operations" of municipal equity of $2,537,092 (1992 - $2,442,835) at the end of the year is comprised of the following: 1993 1992 -for general reduction of taxation $2,410,479 $2,327,004 -for general reduction of user charges 112,314 107,209 -for benefitting landowners related to special charges and special areas ( 4,087) ( 83,561) 2,518,706 2,350,652 -funds available for the acquisition of fixed assets 18,386 92,183 $2,537,092 $2,442,835 (b) Approval of the Ontario Municipal Board has been obtained for those pending issues of long-term liabilities and commitments to be financed by revenues beyond the term of council and approved on or before December 31, 1992. Those aproved after January 1, 1993 have been approved by by-law. The principal and interest payments required to service these pending issues and commitments are within the debt repayment limit prescribed by the Ministry of Municipal Affairs. (c) The balance available for the general reduction of taxation for the fiscal year ending December 31, 1993 has been reduced by an amount of $160,173 (1992 - $112,017) transferred to the Reserves and Reserve Funds as authorized by Report #TR-32-94, dated June 1994, as follows: Name of Reserve/Reserve Fund Amount of Transfer Professional Fees Reserve $ 52,290 General Capital Reserve 9,958 Tax Write off Reserve 7,300 Reserve Fund for Main Library 50,000 Reserve Fund for Courtice Library 5,625 Reserve Fund for Economic Development 35,000 $160,173 Had this reduction not been made, the balance available for the general reduction of taxation would have shown a surplus of $2,570,652 (1992 - $2,439,021) . 4-4 MUNICIPALITY OF CLARINGTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1993 8. RESERVES AND RESERVE FUNDS The total balances of reserves and reserve funds of $6,029,486 (1992 - $5,313,431) and $26,425,431 (1992 - $17,157,595), respectively, are made up of the following: 1993 1992 Reserves set aside for specific purpose by Council for Working capital $ 722,852 $ 733,798 Tax write off 220,072 212,773 Sick leave (45,845) 257,894 Other cultural 46,317 48,664 Acquisition of fixed assets 4,811,501 3,263,476 Building Maintenance and Construction 18,474 14,474 Technical Services 7,166 9,486 Legal/Consulting Issues 122,388 712,866 Community Services Development 10,000 10,000 Election Expenses 75,000 50,000 Firefighters Co-Training 41,561 $ 6,029,486 $ 5,313,431 Reserve funds set aside for specific purpose by Council for Courtice O.H.A.P. $ 30,727 $ 29,249 Recreation programs and facilities 2,181,784 682,112 Debenture repayment 823,907 690,208 Industrial development 423,987 350,900 Other cultural 172,714 143,474 Acquisition of fixed assets 1,045,706 872,723 Bowmanville Waterfront 4,271 16,942 Municipal Housing Study 3,076 5,946 Newcastle Waterfront. Study 52,862 76,120 Bowmanville Go Rail (492) 6,544 Solina Hall Access Project 23,184 4,761,726 2,874,218 Reserve funds set aside for specific purpose by legislation, regulation or agreements Park purposes 2,007,222 2,511,667 Lot levies and road contributions 9,140,397 9,981,034 Parking facilities 263,454 231,256 Development Charges 2,706,110 1,559,420 Fire Primary Response 100,537 Ontario Hydro Nuclear Funds 7,445,985 21,663,705 14,283,377 $26,425,431 $ 17,157,595 4-5 MUNICIPALITY OF CLARINGTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1993 9. CHARGES 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: 1993 1992 Principal payments $287,845 $289,022 Interest 500,668 520,868 $788,513 $809,890 The charges for long-term liabilities assumed by the non-consolidated entities or by individuals in the case of tile drainage and shoreline property assistance loans are not reflected in these statements. 10. CONTINGENCIES A delay claim which had been submitted to the Town by a contractor relating to the reconstruction of the Town Hall has been settled. The Municipality has commenced legal proceedings against an architectural firm for damages resulting from deficient work related to this settlement. Should any gain occur as a result of the above legal action the Municipality will account for the gain in the year settlement is reached. A counter claim has been submitted to the Municipality of Clarington by a local company.allegincr damages and punitive damages related to an interlocutory injunction obtained by the Town relative to its business operations. The outcome of this action is not yet determinable and accordingly no provision has been made in the financial statements for any liability that may result. 11. BUDGET FIGURES Budgets established for capital funds, reserves and reserve funds are based on a project-oriented basis, the costs of which may be carried out over one or more years. As such, they are not directly comparable with current year actual amounts and budgets have, therefore, not been reflected on the "Consolidated Statement of Operations". 12. HYDRO DEVELOPMENT CHARGES "Pursuant to Development Charges By-Law No. 92-105, the Municipality collects Development Charges on behalf of the Clarington Hydro Commission which are to be used to finance future growth-related capital expenditures. These funds are maintained in a Reserve Fund by the Municipality until required to fund the above-noted expenditures. The Municipality collected Development Charges, in the amount of $164,181, on behalf of the Clarington Hydro Commission and remitted $85,130 to the -Clarington Hydro Commission to finance growth-related expenditures incurred. The balance in the related Reserve Fund at December 31, 1993 was $ 0 (1992 - $79,051) and is reported on the Consolidated Balance Sheet." 13. SOCIAL CONTRACT The Social Contract Act requires municipalities to reduce expenditures by a specified amount in each of the years 1993, 1994 and 1995. Unconditional grants will be reduced by a corresponding amount each year. The sectoral agreement between the provincial government and the municipal sector, however, provides for the automatic deferral of 25% of the 1993 social contract target amount and the corresponding reduction of unconditional grants until 1996. For the Municipality of Clarington the target amount for each year is $312,289 and the amount deferred is $78,072. 14. CHANGE OF NAME During the year, the Corporation of the Town of Newcastle officially changed its name to the Corporation of the Municipality of Clarington. 5 MUNICIPALITY OF CLARINGTON CONSOLIDATED STATEMENT OF CURRENT OPERATIONS YEAR ENDED DECEMBER 31 1993 SOURCES OF FINANCING Budget 1993 Actual 1993 Actual 1992 Net municipal taxation $15,209,703 $15,609,313 $14,267,533 User charges 2,656,638 2,707,688 2,725,455 Grants Government of Canada 100 5,103 3,801 Province of Ontario 2,517,802 2,220,655 2,545,949 Other Municipalities - 5,836 Other - Investment income 620,172 514,303 797,995 Penalty and interest on taxes 600,000 1,121,954 908,018 Donations 4,217 4,268 3,220 Other 11000 5,252 2,424 21,609,632 22,194,372 21,254,395 MUNICIPAL FUND BALANCES AT BEGINNING OF YEAR, TO BE USED TO OFFSET (TO BE RECOVERED FROM) TAXATION OR USER CHARGES Town 1,000,000 2,327,004 2,424,387 Library 11,900 14,695 (985) Special areas (83,560) (83,561) (35,853) Recreation, community centres and arena boards 81,811 81,811 72,769 Central business district improvement areas 11,384 11,384 9 070 Museums (681) (681) 15,519 TOTAL FINANCING AVAILABLE DURING THE YEAR $22,630,486 $24,545,024 $23,739,302 APPLIED TO General government $ 4,041,131 $ 3,536,676 $ 3,500,096 Protection to persons and property 2,721,562 2,705,302 2,698,131 • Transportation services 5,545,514 5,623,961 5,087,654 Environmental services 1,126,384 1,182,219 1,167,253 Health services 122,122 104,191 121,060 Recreation and cultural services 4,694,013 4,576,897 4,447,980 Planning and development 1,466,412 1,525,463 1,469,999 19,717,138 190,254,709 18,492,173 NET APPROPRIATIONS TO OTHER FUNDS 2,808,031 2,771,609 2,896,477 MUNICIPAL FUND BALANCES AT END OF YEAR, TO BE USED TO OFFSET (TO BE RECOVERED FROM) TAXATION OR USER CHARGES Town Library - 2,410,479 2,327,004 Special areas 6,997 14,695 _ Recreation, community centre (4,087) (83,561) and arena boards 94,461 94,461 Central business district 81,811 improvement areas 15,987 Museums 15,987 11,384 (5,131) (5 131) (681) TOTAL APPLICATIONS DURING THE YEAR $ $ 545,024 --�-22 630 486 24-� $23 ,302 6 Deloifte & buche Bank of Commerce Building Telephone: (416) 579-8202 -ales 2 Simcoe Street South Toronto area: (416)686-8249 P.O. Box 800 Telecopier: (416) 579-3388 Oshawa, Ontario L1 H 7N1 AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) : We have audited the balance sheet of the trust funds of the Corporation of the Municipality of Clarington as at December 31, 1993 and the statement of continuity of trust funds for the year then ended. These financial statements are the responsibility of the Municipality's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the trust funds for the Corporation of the Municipality of Clarington as at December 31, 1993 and the continuity of trust funds for the year then ended in accordance with accounting principles disclosed in Note 1 to the financial statements. Chartered Accountants April 29, 1994 MUNICIPALITY OF CLARINGTON TRUST FUNDS STATEMENT OF CONTINUITY YEAR ENDED DECEMBER 31 1993 Bowmanville Bondhead Trull Advent Lovekin Ontario Cemetery Cemetery Cemetery Cemetery Cemetery Home Election Perpetual Perpetual Perpetual Perpetual Perpetual Vanderveer Montague Renewal Surplus Total Care Care Care Care Care Legacy Trust Program Fund BALANCE BEGINNING OF YEAR $313, 883 $190,885 $18,275 $1, 774 $-- 918 $10,000 $1,000 $28,709 $53,810 $ 8,512 CAPITAL RECEIPTS Cemeteries 27,259 25, 675 1,584 - Other _ - - - - - - Interest Earned _ 17,424 10,814 1,318 332 84 1,475 - 1,357 2 ,044 - 44 ,683 36,489 2,902 332 84 1,475 - 1,357 2 ,044 - EXPENDITURES Contributions to Cemeteries 14,023 10, 814 1,318 332 84 1,475 Other 3,831 500 - - - - - - 3,331 - 17 ,854 11, 314 1,318 332 84 1,475 - - 3,331 - BALANCE, END OF YEAR $340,712 $216 ,060 $19,859 $1 ,774 $ 918 $10,000 $1,000 $30,066 $52,523 $ 8,512 The accompanying notes are an integral part of this financial statement. MUNICIPALITY OF CLARINGTON TRUST FUNDS BALANCE SHEET DECEMBER 31, 1993 Bowmanville Bondhead Trull Advent Lovekin Ontario Cemetery Cemetery Cemetery Cemetery Cemetery Home Election Perpetual Perpetual Perpetual Perpetual Perpetual Vanderveer Montague Renewal Surplus Total Care Care Care Care Care Legacy Trust Program Fund ASSETS CASH $ 34,021 $ _ $ _ $ _ $ _ $ - - _ - $ $ $34 ,021 $ ACCOUNTS RECEIVABLE Due From General Fund 18,449 8,822 1, 115 - - - - - - 8,512 LOANS RECEIVABLE 18,672 - - _ _ _ _ - 18,672 - INVESTMENTS Investment Certificates 269,740 207,238 18, 744 11774 918 10,000 1,000 30,066 - INTEREST RECEIVABLE 86 - - _ _ _ - - 86 $ - 306 ,947 216 ,060 19 , 859 1,774 918 10,000 11000 30,066 18,758 8,512 $340,968 $216 ,060 $19 ,859 $ 1,774 $ 918 $10,000 $1,000 $30,066 $52 ,779 $ 8,512 LIABILITIES AND FUND BALANCES DUE TO GENERAL FUNDS $ 256 $ - $ - $ - $ - $ - $ - $ - $. 256 $ - FUND BALANCES Capital 340,712 216 ,060 19 ,859 1, 774 918 10, 000 11000 30,066 52,523 8,512 $340,968 $216 , 060 $19 ,859 $ 1,774 $ 918 $10,000 $1,000 $30,066 $52,779 $_8,512 N The accompanying notes are an integral part of this financial statement. 6-3 MUNICIPALITY OF CLARINGTON NOTES TO THE TRUST FUNDS FINANCIAL STATEMENTS DECEMBER 31, 1993 1. ACCOUNTING POLICIES Basis of Accounting: Capital receipts and income are reported on the cash basis of accounting. Expenditures are reported on the cash basis of accounting with the exception of administrative expenses which are reported on the accrual basis of accounting, which recognizes expenditures as they are incurred and measurable as a result of the receipt of goods or services and the creation of a legal obligation to pay. 2. ONTARIO HOME RENEWAL PROGRAM a) The Ontario Home Renewal Program was established by the Ontario Ministry of Housing in 1973 to provide grants for municipalities to make loans to assist owner occupants to repair, rehabilitate and improve their homes to local property standards. Individual loans are limited to $7,500 of which the maximum forgivable portion is $4,000. Ontario Home Renewal Program loans receivable at December 31, 1993 comprise repayable loans of $ 7,096 (1992 - $10,022) and forgivable loans of $11,576 (1992 - $11,446) . Loan forgiveness is earned and recorded at a rate of up to $600 per year of continued ownership and occupancy. In the event of the sale or lease of the home or in the event of the homeowner ceasing to occupy the home, the balances of the repayable loan and the unearned forgivable loan immediately become due and payable by the homeowner. b) Ontario Draft Regulation 641 has established procedures for the winding down of the Ontario Home Renewal Program. Under conditions stipulated in the Regulation, all Fund balances must be remitted to the Ministry of Housing by March 1, 1994. The Municipality will continue to administer the collection of any outstanding loans and remit the proceeds, net of 5% administration fee. 3. INVESTMENTS The total for investments by the trust funds of $269,740 (1992- $247,440) reported on the Balance Sheet at cost have a market value of $269,740 (1992 - $247,440) at the end of the year. CORPORATION OF THE MUNICIPALITY OF CLARINGTON PUBLIC LIBRARY BOARD Municipal Statements for the Year Ended December 31, 1993 and Auditors' Report to the Board, Members of Council, Inhabitants and Ratepayers A Deloifte & buche Bank of Commerce Building Telephone: (416) 579-8202 2 Simcoe Street South Toronto area: (416) 686-8249 P.O. Box 800 Telecopier: (416) 579-3388 Oshawa, Ontario L1 H 7N1 AUDITORS' REPORT To the Board Members, Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) : We have audited the consolidated balance sheet of the Public Library Board of the Corporation of the Municipality of Clarington as at December 31, 1993 and the consolidated statements of operations and changes in financial position for the year then ended. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as explained in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In common with many non-profit organizations, the Public Library Board of the Corporation of the Municipality of Clarington derives part of its revenue from the general public in the form of donations, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to accounting for the amounts recorded in the records of the Public Library Board and we were not able to determine whether any adjustments might be necessary to donation revenues, excess of expenditure over financing, assets or fund balances. In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the donations referred to in the preceding paragraph these consolidated financial statements present fairly, in all material respects, the financial position of the Public Library Board of the Corporation of the Municipality of Clarington as at December 31, 1993 and the results of its operations and the changes in its financial position for the year then ended in accordance with the accounting principles disclosed in Note 1 to the financial statements. , 0 Y -� Chartered Accountants April 15, 1994 CORPORATION OF THE MUNICIPALITY OF CLARINGTON A-1 PUBLIC LIBRARY BOARD CONSOLIDATED STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1993 SOURCES OF FINANCING Actual 1993 Actual 1992 Municipal contribution $ 820,608 $ 819,150 Province of Ontario - Operating grant 120,257 120,963 Government of Canada - Summer Employment Experience Grant 5,003 3,651 Fines, fees, rentals and books 30,844 32,127 Interest 8,252 9,503 Donations 1,051 1,500 Community Care Project - Province of Ontario Grant -- 4,388 Donations -- 1,874 Total operating revenue 986,015 993,156 Contribution for capital expenditure Grant - Municipality of Clarington -- 48,500 Province of Ontario - Information Grant 3,000 Interest - capital fund 1,551 2,889 11551 54,389 Total sources of financing 987,566 1,047,545 EXPENDITURES Operating Salaries and wages 532,586 533,836 Fringe benefits 94,371 89,000 Materials, supplies and utilities 626,957 622,836 Books and films purchased from general revenue and special grants 145,978 147,075 Utilities 25,647 25,504 Other supplies and services 30,222 28,649 Services and rents 201,847 201,228 Advertising 4,034 Audit 3,599 Computer Services and maintenance 3,850 3,834 Professional Services 18,720 19,841 Rents and custodial services 3,632 522 91,143 74,555 Telephone, travel and conferences 23 Insurance ,530 23,750 Community Care Project 1,349 1,460 Computerization -- 6,305 146,258 _133,866 Total operating expenditures 975,062 957,930 Capital Security System 11,621 732 Equipment 651 17,546 Newcastle Village Project 16, 16,428 Western Area Branch Project 63,727 Infonet System 1,003 Total capital expenditures -- 3,000 91,999 38,709 Total expenditures 1"067,061 996,639 EXCESS OF (EXPENDITURES OVER FINANCING)/ FINANCING OVER EXPENDITURES (79,495) 50,906 APPROPRIATION TO RESERVE FUND - MUNICIPALITY OF CLARINGTON (Note 4) ( 2,000) ( 2,000) FUND BALANCES, BEGINNING OF YEAR 106,878 57,972 FUND BALANCES, END OF YEAR $ 25,383 $_106,878 FUND BALANCES, END OF YEAR CONSIST OF THE FOLLOWING: To be used to offset Municipal contributions or user charges Unexpended capital financing $ 6,997 $ 14,695 18,386 92,183 $ 25,383 $ 106,878 The accompanying notes are an integral part of this financial statement. A-2 CORPORATION OF THE MUNICIAPALITY OF CLARINGTON PUBLIC LIBRARY BOARD CONSOLIDATED BALANCE SHEET DECEMBER 31, 1993 1993 1992 ASSETS CURRENT ASSETS Cash $ 94,862 $241,622 Accounts Receivable 10,108 Due from Government of Canada 15,200 5,778 $110,062 $257,508 LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 20,707 $ 40,013 Payable to Municipality of Clarington 62,972 109,566 Deferred revenue 1,000 1,051 84,679 150,630 FUND BALANCES FUND BALANCES, END OF YEAR To be used to offset municipal contributions or user charges in following year 6,997 14,695 Unexpended Capital Financing 18,386 92,183 25,383 106,878 $110,062 $257,508 The accompanying notes, are an integral part of this financial statement. A-3 CORPORATION OF THE MUNICIPALITY OF CLARINGTON PUBLIC LIBRARY BOARD CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31 1993 1993 1992 CASH PROVIDED BY OPERATING ACTIVITIES Total operating revenue $986,015 $993,156 Total operating expenditures 975,062 957,930 10,953 35,226 Appropriation to Reserve Fund - Municipality of Clarington (Note 4) ( 2,000) ( 2,000) Net change in non-cash working capital balances related to operations (Note 2) ( 65,265) 67,994 ( 56,312) 101,220 CASH PROVIDED FOR-CAPITAL EXPENDITURES Municipality of Clarington grant --- 48,500 Interest 1,551 2,889 Province of Ontario - Infonet Grant --- 3,000 1,551 54,389 CASH USED FOR CAPITAL EXPENDITURES Security System ( 11,621) ( 732) Equipment ( 16,651) ( 17,546) Newcastle Village Project --- ( 16,428) Western Area Branch Project ( 63,727) ( 1,003) Infonet System --- ( 3,000) ( 91,999) ( 38,709) NET CASH (USED) PROVIDED (146,760) 116,900 CASH, BEGINNING OF THE YEAR 241,622 124,722 CASH, END OF YEAR $ 94�®2 $24122 A-4 CORPORATION OF THE MUNICIPALITY OF CLARINGTON PUBLIC LIBRARY BOARD NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1993 1. SIGNIFICANT ACCOUNTING POLICIES The financial statements which are representations of management have been prepared in accordance with accounting policies prescribed for Ontario municipalities by the Ministry of Municipal Affairs, and reflect the following policies as set forth in the Municipal Financial Reporting Handbook: (a) Basis of consolidation (i) Consolidated Balance Sheet This statement reflects the assets and liabilities of the revenue fund, and the capital fund. (ii) Consolidated Statement of Operations This statement reflects the consolidated sources of financing and expenditures of the revenue fund, and the capital fund as well as appropriations to the reserve fund. (b) Basis of accounting The financial statements have been prepared using the accrual basis of accounting under which sources of financing and expenditures are recorded in the year in which they are earned or incurred respectively. The historical cost and accumulated depreciation of fixed assets are not reported for municipal purposes. Instead, the "Capital outlay to be recovered in future years", which represents the amount of any outstanding portion of unmatured long-term liabilities for municipal expenditures, is reported on the "Consolidated Balance Sheet". As at December 31, 1993, the Clarington Public Library Board had no "Capital outlay to be recovered in future years". Deferred revenue represents funds donated for specific purposes. 2. NET CHANGE IN NON-CASH WORKING CAPITAL BALANCES RELATED TO OPERATIONS IS COMPRISED OF THE FOLLOWING: 1993 1992 (Increase) decrease in due from Government of Canada $( 9,422) $ 620 Decrease (increase) in accounts receivable 10,108 ( 9,908) (Decrease) increase in accounts payable and accrued liabilities (19,306) 8,944 (Decrease) increase in payable to Municipality of Clarington (46,594) 68,802 (Decrease) in deferred revenue ( 51) ( 464 3. PENSION AGREEMENTS $(65,265) $ 67,994 The Library makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS) , which is a multi-employer plan, on behalf of the 20 members (1992 - 19 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 contributed to OMERS for 1993 was $27,422 (1992 - 27,331) for current service and is included as an expenditure on the "Consolidated Statement of Operations". A-4.1 4. RESERVE FUND During the year, the Clarington Public Library Board contributed $2,000 to the Municipality of Clarington's "Clarington Public Library - Main Library Reserve Fund" for future computer equipment upgrades at the main branch of the Clarington Public Library. 5. COMMITMENTS The Library Board leases the premises under a lease agreement which expires in June 1995. The following are the minimum lease payments required during the next 2 years. 1994 49,763 1995 24,881 6. BUDGET FIGURES Budgets established for capital funds are based on a project-oriented basis, the costs of which may be carried out over one or more years. As such, they are not directly comparable with current year actual amounts and budgets have, therefore, not been reflected on the "Consolidated Statement of Operations". Budget figures have been reflected on the analysis of current operations. 7. CHANGE OF NAME During the year the Town of Newcastle officially changed its name to the Municipality of Clarington. As a result the Town of Newcastle Public Library Board changed it's name to the Clarington Public Library Board. A-5 CORPORATION OF THE MUNICIPALITY OF CLARINGTON PUBLIC LIBRARY BOARD ANALYSIS OF CURRENT OPERATIONS YEAR ENDED DECEMBER 31, 1993 SOURCES OF FINANCING Budget 1993 Actual 1993 Actual 1992 Municipal contribution $831,108 $820,608 $81911150 Province of Ontario - Operating grant 122,173 120,257 120 963 Government of Canada - Summer ' Employment Experience grant --- 5,003 3,651 Fines, fees, rentals, and books 32,500 30,844 32,127 Interest Donations 6,625 8,252 9,503 Community Care Project 1,000 1,051 1,500 - Province of Ontario Grant --- 4,388 Donations '-' -' --- 1,874 Total operating revenue 993,406 986,015 993,156 EXPENDITURES Operating Salaries and wages 538,311 532,586 533,836 Fringe benefits 89,197 94,371 89,000 627,508 626,957 622,836 Materials, supplies and utilities Books and films purchased from general revenue and special grants 150,158 145,978 147,075 Utilities 28,900 25,647 25,504 Other supplies and services 31,105 30,222 28,649 210,163 201,847 201,228 Services and rents Advertising 4,300 4,034 3,599 Audit 3,850 3,850 3,834 Computer Services and maintenance 19,000 18,720 19,841 Professional Services 8,500 3,632 522 Rents and custodial services 86,865 91,143 74,555 Telephone, travel and conferences 25,220 23,530 23,750 Insurance 1,900 1,349 1 460 Community Care Project ' - Computerization --- --- 6,305 149,635 146,258 133,866 Total operating expenditures 987,306 975,062 957,930 Capital expenditure from current revenue Equipment 16,000 16,651 17,546 Total expenditures 1,003,306 991,713 975,476 EXCESS OF (EXPENDITURE OVER FINANCING) FINANCING OVER EXPENDITURES ( 9,900) ( 5,698) 17,680 Appropriation to Reserve Fund ( 2,000) ( 2,000) ( 2,000) - Municipality of Clarington (Note 4) FUND BALANCES, BEGINNING OF YEAR To be used to offset (to be recovered from) Municipal contribution or user charges 11,900 14,695 ( 985) FUND BALANCES, END OF YEAR To be used to offset (to be recovered from) Municipal contributions or user charges $ --- $ 6,997 $_ 14� B Deloitte & buche Bank of Commerce Building Telephone: (416) 579-8202 2 Simcoe Street South Toronto area: (416)686-8249 P.O. Box 800 Telecopier: (416)579-3388 Oshawa, Ontario L1 H 7N1 AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) : We have audited the balance sheet of the Board of Management for the Bowmanville Central Business District Improvement Area as at December 31, 1993 and the statement of operations for the year then ended. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Board of Management for the Bowmanville Central Business District Improvement Area as at December 31, 1993 and the results of its operations for the year then ended in accordance with accounting principles disclosed in Note 1 to the financial statements. Chartered Accountants April 18, 1994 B-1 CORPORATION OF THE MUNICIPALITY OF CLARINGTON BOARD OF MANAGEMENT FOR THE BOW4ANVILLE CENTRAL BUSINESS DISTRICT IMPROVEMENT AREA STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31 1993 1993 1992 SOURCES OF FINANCING Taxation - Municipality of Clarington $82,000 Interest $95,000 Miscellaneous 774 863 6,166 10,913 EXPENDITURES 88.940 106,776 Salaries 8,224 10,040 Advertising and promotion Landscaping 37,339 43,813 527 Long-term debt charges 5, 5,088 Capital expenditure 16,500 16,500 Members Special Refund 8,897 15,184 Legal Expenditure --- 13,000 Miscellaneous 6,000 --- 882 827 83,369 104,452 EXCESS OF FINANCING OVER EXPENDITURE 5,571 2,324 FUND BALANCE, BEGINNING OF YEAR - 3,091 767 To be used to offset taxation or user charges FUND BALANCE, END OF YEAR - $ 8,662 $�p�91 To be used to offset taxation or user charges The accompanying notes are an integral part of this financial statement. B-2 CORPORATION OF THE MUNICIPALITY OF CIJUU NGTON BOARD OF MANAGEMENT FOR THE BOWMANVILLE CENTRAL BUSINESS DISTRICT IMPROVEMENT AREA BALANCE SHEET DECEMBER 31, 1993 1993 1992 ASSETS CURRENT ASSETS Cash and term deposit $ 2,686 $ 3,131 Prepaid legal fee 6,000 - CAPITAL OUTLAY FINANCED BY LONG-TERM LIABILITIES AND TO BE RECOVERED IN FUTURE YEARS (Note 2) --- 15,000 $ 8,686 $18,131 LIABILITIES CURRENT LIABILITIES Due to Municipality of Clarington $ 24 $ 40 Long-Term Liabilities - Current --- 15,000 $ 24 $15,040 FUND BALANCE FUND BALANCE, END OF YEAR - To be used to offset taxation or user charges 8,662 3,091 $ 8,686 $18,131 The accompanying notes are an integral part of this financial statement. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1993 1. BASIS OF ACCOUNTING The financial statements have been prepared using the accrual basis of accounting under which sources of financing and expenditures are recorded in the year in which they are earned or incurred respectively, with the exception of principal and interest charges on long term liabilities which are charged against operations in the periods in which they are paid. 2. CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS The historical cost and accumulated depreciation of fixed assets are not reported for municipal purposes. Instead, the "Capital outlay to be recovered in future years", which represents the outstanding principal portion of unmatured long-term liabilities for municipal expenditures, is reported on the "Balance Sheet". As at December 31, 1993 the Board had no "Capital outlay Financed by long term liabilities to be recovered in future years". 3. CHANGE OF NAME During the year the Town of Newcastle officially changed its name to the Municipality of Clarington. As a result the Town of Newcastle Board of Management for the Bowmanville Central Business District Improvement Area changed its name to the Municipality of Clarington Board of Management for the Bowmanville Central Business District Improvement Area. C Deloitte & buche 00, Bank of Commerce Building Telephone: (416) 579-8202 2 Simcoe Street South Toronto area: (416) 686-8249 P.O. Box 800 Telecopier: (416) 579-3388 Oshawa, Ontario L1 H 7N1 AUDITORS' REPORT To the Board Members, Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) : We have audited the balance sheet of the Board of Management for the Newcastle Central Business District Improvement Area as at December 31, 1993 and the statement of operations for the year then ended. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Board of Management for the Newcastle Central Business District Improvement Area as at December 31, 1993 and the results of its operations for the year then ended in accordance with accounting principles disclosed in Note 1 to the financial statements. Chartered Accountants April 29, 1994 C-1 CORPORATION OF THE MUNICIPALITY OF M ARINGTON BOARD OF MANAGEMENT FOR THE NEWCASTLE ' CENTRAL BUSINESS DISTRICT IMPROVEMENT AREA STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1993 SOURCES OF FINANCING 1993 1992 Taxation - Municipality of Clarington $ 11,066 $ 8,132 Interest 44 106 Donations 130 124 11,240 8,362 EXPENDITURES Promotion and landscaping expense 7,852 6,315 Long-term debt charges 4,230 4,230 12,082 10,545 EXCESS OF (EXPENDITURE OVER FINANCING) ( 842) ( 2,183) FUND BALANCE, BEGINNING OF YEAR - To be used to offset taxation or user charges 5,359 7,542 FUND BALANCE, END OF YEAR - To be used to offset taxation or user charges $ 4,517 $ 5,359 BALANCE SHEET DECEMBER 31, 1993 1993 1992 ASSETS CASH $ 4,555 $ 5,359 CAPITAL OUTLAY FINANCED BY LONG-TERM LIABILITIES AND TO BE RECOVERED IN FUTURE YEARS (Note 2) --- 3,845 $ 4,555 $ 9,204 LIABILITIES ACCOUNTS PAYABLE $ 38 LONG-TERM LIABILITIES --- 3,845 $ 38 $ 3,845 FUND BALANCE FUND BALANCE, END OF YEAR - To be used to offset taxation or user charges 4,517 5,359 $ 4,555 $ 9,204 The accompanying notes are an integral part of this financial statement. C-2 CORPORATION OF THE MUNICIPALITY OF CLARINGTON BOARD OF MANAGEMENT FOR THE NEWCASTLE CENTRAL BUSINESS DISTRICT IMPROVEMENT AREA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1993 1. BASIS OF ACCOUNTING The financial statements have been prepared using the accrual basis of accounting under which sources of financing and expenditures are recorded in the year in which they are earned or incurred respectively, with the exception of principal and interest charges on long term liabilities which are charged against operations in the periods in which they are paid. 2. CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS The historical cost and accumulated depreciation of fixed assets are not reported for municipal purposes. Instead, the "Capital outlay to be recovered in future years", which represents the outstanding principal portion of unmatured long-term liabilities for municipal expenditures, is reported on the "Balance Sheet". As at December 31, 1993 the Board had no "Capital outlay Financed by long term liabilities to be recovered in future years". 3. CHANGE OF NAME During the year the Town of Newcastle officially changed its name to the Municipality of Clarington. As a result the Town of Newcastle Board of Management for the Newcastle Central Business District Improvement Area changed its name to the Municipality of Clarington Board of Management for the Newcastle Central Business District Improvement Area. D Deloifte & buche Bank of Commerce Building Telephone: (416) 579-8202 2 Simcoe Street South Toronto area: (416)686-8249 P.O. Box 800 Telecopier: (416) 579-3388 Oshawa, Ontario L1 H 7N1 AUDITORS' REPORT To the Board Members, Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) : We have audited the balance sheet of the Board of Management for the Orono Central Business District Improvement Area as at December 31, 1993 and the statement of operations for the year then ended. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Board of Management for the Orono Central Business District Improvement Area as at December 31, 1993 and the results of its operations for the year then ended in accordance with accounting principles disclosed in Note 1 to the financial statements. Chartered Accountants April 29, 1994 D-1 CORPORATION OF THE MUNICIPALITY OF CLARINGTON BOARD OF MANAGEMENT FOR THE ORONO CENTRAL BUSINESS DISTRICT IMPROVEMENT AREA STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31 1993 SOURCES OF FINANCING 1993 1992 Taxation - Municipality of Clarington $ 6,000 $ 6,000 Fund Raising 2,888 11191 EXPENDITURES 8,888 7,191 Advertising and promotion 3,758 3,215 Landscaping 1,283 538 Capital Expenditure 2,887 Miscellaneous 1,086 1,265 9,014 5,018 EXCESS OF (EXPENDITURE OVER FINANCING)/ ( 126) 2,173 FINANCING OVER EXPENDITURE FUND BALANCE, BEGINNING OF YEAR - To be used to offset taxation or user charges 2,934 761 FUND BALANCE, END OF YEAR - To be used to offset taxation or user charges $2,gOg $ 934 BALANCE SHEET DECEMBER 31, 1993 ASSET 1993 1992 CASH $2,853 LIABILITY ACCOUNTS PAYABLE $ 45 $ FUND BALANCE FUND BALANCE, END OF YEAR - To be used to offset taxation or user charges $2,808 $ 2,934 2 853 2 934 The accompanying notes are an integral part of this financial statement. D-2 CORPORATION OF THE MUNICIPALITY OF CLARINGTON BOARD OF MANAGEMENT FOR THE ORONO CENTRAL BUSINESS DISTRICT IMPROVEMENT AREA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1993 1. BASIS OF ACCOUNTING The financial statements have been prepared using the accrual basis of accounting under which sources of financing and expenditures are recorded in the year in which they are earned or incurred respectively. 2. CHANGE OF NAME During the year the Town of Newcastle officially changed its name to the Municipality of Clarington. As a result the Town of Newcastle Board of Management for the Orono Central Business District Improvement Area changed its name to the Municipality of Clarington Board of Management for the Orono Central Business District Improvement Area. CORPORATION OF THE MUNICIPALITY OF CLARINGTON (formerly the Corporation of the Town of Newcastle) 1993 Financial Information Return and Accountants' and Auditors' Reports to the Ministry of Municipal Affairs 1993 FINANCIAL INFORMATION RETURN MUNICIPALITY: CORPORATION of MUNICIPALITY OF CLARINGTON (formerly the Corporation of the Town of Newcastle) in the Region, County or District of: DURHAM DECLARATION OF THE MUNICIPAL TREASURER Pursuant to the determination of grants under the Ontario Unconditional Grants Act, and to the information required by the Province under the Municipal Affairs Act, the following schedules are attached: Attached 1 Analysis of Revenue Fund Revenues x- 2LT Analysis of Taxation X 2UT Analysis of Upper Tier Requisitions and Direct Charges — 2MA Analysis of Taxation in Merged Areas — 3 Analysis of Current Revenue for Specific Functions X_ 4 Analysis of Revenue Fund Expenditures X 5 Analysis of Capital Operations X 6 Analysis of Capital Grants and Own Expenditures X 7 Analysis of Net Long Term Liabilities By Function X 8 Analysis of Long Term Liabilities and Commitments X 9LT Continuity of Upper Tier and School Board Levies X 10 Continuity of Reserves and Reserve Funds X. 11 Analysis of Consolidated Year End Balances X 12 Statistical Data X 13 Grant Information X 14 Grant Information — The schedules have been drawn up in accordance with the instructions provided by the Ministry of Municipal Affairs. They represent the consolidated financial activities of the municipality, all local boards,including joint boards where applicable and any other local corporate entities set up by the municipality to provide services to ratepayers. The consolidated local boards and entities are: Public Library Board Clarke Museum and Archives Bowmanville Museum Board Board of Management for the Bowmanville Central Business District Improvement Area Board of Management for the Newcastle Central Business District Improvement Area Board of Management for the Orono Central Business District Improvement Area Newcastle Arena Board Newcastle Community Hall Board Orono Arena & Community Centre Board Trust funds administered by the municipality and its local boards, harbour commissions, humane societies, municipal non-profit housing corporations, provincial-municipal housing authorities, sinking funds, retirement or pension plan funds, school boards, conservation authorities, children's aid societies, district health councils, municipal hospitals and gas, telephone and hydro utilities are not consolidated. The schedules have been prepared by. .The Corporation.of. th. . .e Municipality. . . . of Clarington. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Auditor's firm or name of Municipality) Questions regarding the information contained in them should be addressed to .Marie A..Marano. _ _ . . . . 40..Temperance St. , Bowmanville, Ontario LlC 3A6at (905) 623-3379 ..............I............................ ...................................................... de and telephone) Date. .Ma:y. . . 3. . . . . . . . . . . . . . . . . . . . 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . re urer arie A. Marano Deloifte & buche Bank of Commerce Building Telephone: (416) 579-8202 2 Simcoe Street South Toronto area: (416)686-8249 P.O. Box 800 Telecopier: (416) 579-3388 Oshawa, Ontario L1 H 7N1 ACCOUNTANTS' REPORT IN ACCORDANCE WITH SCHEDULES 1 to 11 OF THE FINANCIAL INFORMATION RETURN To the Ministry of Municipal Affairs: Our audit of the consolidated financial statements of the corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) for the year ended December 31, 1993 was made for the purpose of forming an opinion on the consolidated financial statements referred to in our auditors' report to the Members of Council, Inhabitants and Ratepayers dated April 29, 1994. Schedules 1 to 11 of the 1993 Financial Information Return have not been prepared on the same basis as the consolidated financial statements. For the purposes of this report we have performed, at your request, the following procedures in connection with Schedules 1 to 11 of the Financial Information Return of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) for the year ended December 31, 1993: (a) we have compared the amounts disclosed on these schedules to the books and records of the Municipality and found them to be in agreement; (b) we have added and cross-added all schedules and found them to be arithmetically correct; and (c) we have checked the cross-references indicated in the "Cross-References to Other Schedules" section for each of the above-noted schedules, as outlined in the "Instructions for Completing the 1993 Financial Information Return", and found all such cross-references to be in agreement. The above-noted procedures do not constitute an audit of these schedules. Therefore, we do not express an opinion on Schedules 1 to 11 of the 1993 Financial Information Return. Chartered Accountants April 29, 1994 Murucipality ANALYSIS OF REVENUE FUND CORPORATION of the MUNICIPALITY OF REVENUES CLARINGTON 3 for the year ended December 31, 1993 (Formerly Town ot Newcastle) upper school total tier board own revenue purposes purposes purposes 1 2 3 4 Taxation Taxation from schedule 2LT (or requisitions from schedule 2UT) 1 55,339,914 10,090,321 —31,783,301 Direct water billings on ratepayers — own municipality 2 — other municipalities 3 Sewer surcharge on direct water billings — own municipality 4 — other municipalities 5 Subtotal 6 55,339,914 10,090,321 31,783,301 13,466.2Q? Payments in lieu of taxes Canada 7 Canada enterprises 8 31,795 31,795 Ontario The Municipal Tax Assistance Act 9 74,882 74,882 The Municipal Act, section 157 10 91000 4,2" 4,788 Other 11 Ontario enterprises Ontario Housing Corporation 12 39,401 7.486 Ontario Hydro 13 1,918,056 1 1 Liquor Control Board of Ontario 14 9,227 9,227 Other 15 Municipal enterprises 16 22.06 22,061 Other municipalities and enterprises 17 73,938 Subtotal 18 2,178,36 11,698 23,641 Ontario unconditional grants Per household general 19 Per household police 20 Transitional and special assistance 22 Resource equalization 23 General support 24 Northern special support 25 Apportionment guarantee 26 Revenue guarantee 27 Subtotal 28 511 ,343 511,343 Revenues for specific functions Ontario specific grants 29 1,739,8 8 1,739,878 Canada specific grants 30 5,103 5,103 Other municipalities—grants and fees 31 4,500 4,500 Fees, service charges and donations 32 1,942,504 1,942.504 Subtotal 33 3,691,985 3 691 985 Other revenue Trailer revenue and licences 34 Licences and permits 35 621,307 621,307 Fines 37 5,252 5,25 2 Penalties and interest on taxes 38 1,121,95-4— 1,121,954 Investment income—from own funds 39 —other 40 514,303 514,303 Sale of publications, equipment, etc. 42 4,336 4,33 6 Contributions from capital fund 43 Contributions from reserves and reserve funds 44 1,363,171 1 1,363,171 Contributions from non consolidated entities 45 46 47 48 Sale of land 49 Subtotal 50 3,630,323 3 630 323 Total revenue 51 65,351,925 10,102,019 31,806,942 23,442,9641 ANALYSIS OF TAXATION for the year ended December 31, 1993 LOCAL TAXABLE ASSESSMENT M for computer residential commercial residenti use only and farm and industrial business and fan 1 2 3 4 I. Own purposes (a) Levied by mill rate General 0 1 0 1 0 61,112,905 7,887,482 3,240,105 137.4E police villages at reduced rates 0 1 0 2 farms at reduced rates 0 1 0 3 0 1 0 1 Special area rates and police villages Clarington Rural Street Lights 0 1 14,149,839. 364,089 159,705 11.4, Urban Street Lights 0 1 17,053,725 2,716,729 1,227,280 12.7E 0 1 0 1 0 1 0 1I Subtotal levied by mill rate (b) Other charges on tax bills Share of telephone and telegraph taxation Local improvements Sewer and water service charges Sewer and water connection charges Fire service charges Minimum tax(differential only) Municipal drainage charges Garbage collection charges Business improvement area II. Upper tier purposes Subtotal special charges on tax bills (a) Levied by mill rate Total own purposes taxation General 0 2 0 110 1 61.112,9Q51 2.887 4,92 Special purposes ' 0 2 0 2 0 2 0 2 Subtotal levied by mill rate (b) Other charges on tax bills Share of telephone and telegraph taxation Local improvements Sewer and water service charges Sewer and water connection charges Fire service charges III. School board purposes Subtotal special charges on tax bills Elementary public Total upper tier taxation Northumberland Newcastle Board 0 3 0 1 52,436,963 7,548,663 3,130,825 227.0E of Education 101310111 Share of telephone and telegraph taxation Elementary separate Subtotal elementary public [ Peterborough Victoria 0 4 0 1 8,675,9421 338,819 1 109,280 _186.97 Torthumberland Newcastle-Roman 10 14101 1 Catholic Separate School Board Share of telephone and telegraph taxation Secondary public Subtotal elementary separate Northumberland Newcast e-Board 10 15 1011 1 1 52,436,9631 7,548,663 1 3,130,825 194.3 of Educatio7 0 5 0 1 Share of telephone and telegraph taxation Secondary separate Subtotal secondary public [ Peterborough/Victoria/ 10171011 1 1 8,675,9421 338.819 109,280 198.5: Northumberland Newcastle-Roman 10 1710111 Catholic Separate School Board -Share of telephone and telegraph taxation Subtotal secondary separate Total all school board taxation L The Corporation of the Municipality of 2 4 Clarington - (Formerly the Town of Newcastle) RATES TAXES LEVIED SUPPLEMENTARY TAXES TOTAL TAXES commercial, commercial industrial and residential and residential commercial total business and farm industrial business and farm and industrial business columns 6 to 11 5 6 7 8 9 10 11 12 161.744 8,401,924 1,275,753 524,068 60 637 31,655 17,024 10,311,061 13.441 161,662 4,894 2,147 297 226 69 169,295 15.038 217,981 40,854 18,456 (538) 1,752 990 279,495 4 0 0 1 8,781,567 1,321,501 544 671 60,396 33,633 18,083 10,759, 2 1 0 2 189,681 189,681 2 2 0 12,705 1 .705 2 3 0 2 4 0 2 5 0 2 6 0 2 7 0 2 8 0 23308,740 64 960 31,059 0 2,40 759 2 9 0 99,296 99,296 3 0 0 3 1 0 3 2,321,445 254 641 99,296 2,706,441 3 12 LO 1 4 11 103 012 1,576,142 643 967 91,455 33,633 18,083 13,466,292 152.477 7,920,538 1,202,660 494 042 57,132 29,832 15,997 9,720,201 4 0 0 5 7,920,538 1 202 660 494,042 57,132 29.832 15,997 9,720,201 2 1 0 6 166,188 166,188 2 2 2 0 2 2 3 0 203 932 203,932 2 2 4 0 2 2 5 0 2 3 10 0 2 3 1 1 0 7 203,932 166,188 370,120 3 LILL 0 8 8,124,470 1,368,848 1 494,042 57,132 29,832 15,997 10,090,321 267.140 11,906,809 2,016,550 836,369 76,577 49,241 27,101 14,912,647 3 2 1 0 9 261,898 261 898 3 3 2 0 10 L1,906,809 - 2,278,448 836,369 76,577 49,241 27,101 15,174,545 t42E 19,950 1,622,141 74,523 24,0.36 19,396 2,503 785 1,743,38 18 21,752 21,752 4 3 2 0 2,503 785 228.619 10,189,865 1,725,768 715,766 65,489 42,131 23,090 12,762,109 5 -LL!io-1 12 213,173 5 3 2 0 16 10,189,865 1,938,941 715,766 65,489 42,131 23,090 12,975,282 233.54 1,722,261 79 128 25,521 20,556 2 641 829 1,850,936 7_21 110 19 17,402 17,402 7 3 2 0 17 1,722,261 96,530 25,521 20,556 2,641 829 1,868,338 8= 14 2 j1,601,692 182,018 1 96,516 1 51,805 31,783,301 ANALYSIS OF CURRENT REVENUE CORPORATION of the MUNICIPALITY OF 3 FOR SPECIFIC FUNCTIONS CLARINGTON for the year ended December 31, 1993 7 other Ontario municipalities— fees,service specific Canada grants,fees,and charges and grants grants service charges donations 1 2 3 4 General government 1 7,801 4,500 161,549 Protection to persons and property 2 53,182 Fire Police 3 Conservation authority 4 Protective inspection and control 5 26,955 20,861 6 Subtotal 7 26,955 74,043 Transportation services Roadways g 1,106,811 243,292 Winter control 9 404,339 Transit 10 44,027 Parking 11 Street lighting 12 5,759 Air transportation 13 14 Subtotal 15 1,560,936 243 292 Environmental services Sanitary sewer system 16 Storm sewer system 17 Waterworks system 18 Garbage collection 19 Garbage disposal 20 Pollution control 21 22 Subtotal 23 Health services Public health services 24 Public health inspections and control 25 Hospitals 26 Ambulance services 27 Cemeteries 28 29 Subtotal 30 67,766 Social and family services General assistance 31 Assistance to aged persons 32 Assistance to children 33 Day nurseries 34 35 Subtotal 36 Recreation and cultural services Parks and recreation 37 1,184,880 Libraries 38 120,257 5,003 31,895 Other cultural - Museums 39 23,929 100 19,426 Subtotal 40 144,186 5,103 1,236,201 Planning and development Planning and zoning 41 Commercial and industrial-$•I.A. `s 42 Residential development 43 Agriculture and reforestation 44 Tile drainage/shoreline assistance 45 45,264 46 Subtotal 47 159,653 Electricity 48 Gas 49 Telephone 50 Total 51 1,739,878 ANALYSIS OF REVENUE FUND EXPENDITURES materials, for the year ended December 31, 1993 salaries, services, wages and rents and transfers employee net long term financial to own benefits debt charges expenses funds 1 2 3 4 General government 1 1,803,118 337 284 1,404,774 1,186,612 Protection to persons and property Fire 2 1,757,521 227,111 10,000 Police 3 Conservation authority 4 Protective inspection and control 5 653,431 58,739 9,633 6 Subtotal 7 2,410,952 285,850 1 19,633 Transportation services Roadways 8 2.319,116 2,018,639 1,271,998 Winter control 9 245,088 570,679 Transit 10 Parking 11 48,724 33,262 Street lighting 12 25,759 271,194 78,123 Air transportation 13 14 Subtotal 15 2,612,928 25,759 2,893,774 1,350,121 Environmental services Sanitary sewer system 16 13,220 Storm sewer system 17 23,333 Waterworks system 18 Garbage collection 19 10,860 1,119,505 1,290,000 Garbage disposal 20 Pollution control Q 21 603 22 Subtotal 23 10,860 36,553 1,120,108 1 290 000 Health services Public health services 24 Public health inspections and control 25 Hospitals 26 Ambulance services 27 Cemeteries 28 83,228 11,678 5,000 29 Subtotal 30 83,228 11,678 5,000 Social and family services General assistance 31 Assistance to aged persons 32 Assistance to children 33 Day nurseries 34 35 Subtotal 36 Recreation and cultural services Parks and recreation 37 1,797,491 :4.044 740 969,182 72,717 Libraries 38 626,957 348,105 74,276 Other cultural-Museums 39 112,260 50,894 64,999 Subtotal 40 2-,536,708 404,740 1,368,181 211,992 Planning and development Planning and zoning 41 1,125,458 217,759 917 Commercial and industrial 42 60,558 20,730 95,992 69,169 Residential development 43 Agriculture and reforestation 44 Tile drainage/shoreline assistance 45 45,264 •LACAC 46 4,966 Subtotal 47 1,186,016 65,994 318,717 70,086 Electricity 48 Gas 49 Telephone 50 Total 51 a CORPORATION of the MUNICIPALITY OF CLARINGTON 8 inter- (Formerly Town of Newcastle) other functional total transfers transfers expenditure 5 6 7 $ $ $ 8 $ Total of column 2 includes: (8,500) 4,723,288 1 payments to Ontario in respect of Down- town Revitalization Program loans 81 8,500 2,003,132 2 Accrued interest (enter an amount only 3 if the change to the accrual basis 4 was made in this reporting year) 82 721,803 5 6 Interest portion of transit debt charges 8.500 2,724,935 7 included on line 10 83 Total of column 3 includes: 5,609,753 8 91 500 10 Ministry of the Environment 91,500 91 8 767 9 Provincial projects service charges 81 —water 52 986 11 7 12 —sewer 53 13 Provincial projects frontage and 14 connection charges—water 57 91,500 15 —sewer 58 Joint projects operating charges —water 54 —sewer 55 13,220 16 O.P.P. policing contracts 56 23,333 17 Short term interest costs 60 18 2;420,365 19 Total of column 5 includes: 20 Grants to charitable and non-profit 603 21 organizations 62 123,459 22 Grants to universities and colleges 63 2,457,52T— 23 Contributions to UNCONSOLIDATED joint local boards Health unit 64 24 District welfare board 65 25 Home for the aged 66 26 Recreation board(s) 67 27 Fire area board 68 9,285 109,191 28 Suburban roads commission 69 29 70 9,289 30 71 31 Line 1 of column 7 includes: 32 Members of council 72 259,306 33 34 Line 51 of column 7 includes: 35 payment in respect of long term commit- 36 ments and liabilities financed from revenue, as approved by the Ontario Municipal Board 3,367,589 37 or Council,as the case may be.Exclude 53,911 1,049,338 38 debt charges reported in column 2. 73 228,153 39 123,459 4,645,080 40 1,344,134 41 246,449 42 43 44 45,264 45 4 966 46 1,640,813 47 48 49 50 ___2_24z241 -9- 23,274,910 51 Municipality ANALYSIS OF CAPITAL OPERATIONS CORPORATION of the MUNICIPALITY OF 5 for the year ended December 31, 1993 CLARINGTON 9 (Formerly Town of Newcastle) 1 Unfinanced capital outlay(Unexpended capital financing) at the beginning of the year 1 92,183) Sources of financing Contributions from own funds Revenue fund 2 971,305 Reserves and reserve funds 3 2,547,914 Subtotal 4 3,519,219 Long term liabilities incurred Central Mortgage and Housing Corporation 5 Ontario Municipal Improvement Corporation 7 Commercial Area Improvement Program 9 Other Ontario housing programs 10 Ministry of the Environment 11 Tile drainage and shoreline property assistance programs 12 The Public Serial debentures 13 Sinking fund debentures 14 Long-term Debt 15 400,000 16 17 Subtotal* 18 1 400,000 Grants and loan forgiveness Ontario 20 1 -64n-577 Canada 21 Other municipalities 22 Subtotal 23 1 _641 ,913 Other financing Prepaid special charges 24 Proceeds from sale of fixed assets 25 Investment income From own funds 26 Other 27 Donations 28 5,726 30 31 Subtotal 32 Total sources of financing 33 Applications Own expenditures Short term interest costs 34 Other 35 Subtotal 36 Transfers of proceeds from long term liabilities to: Other municipalities 37 Unconsolidated local boards 38 Individuals 39 Subtotal 40 Transfers to reserves, reserve funds and the revenue fund 41 Total applications 42 Unfinanced capital outlay (Unexpended capital financing) at the end of the year 43 18,386) Amount reported in line 43 analysed as follows: Unapplied capital receipts 44 ( ) To be recovered from: —taxation or user charges within term of council 45 —proceeds from long term liabilities 46 —transfers from reserves and reserve funds 47 —other(specify) 48 Total unfinanced capital outlay (unexpended capital financing) 49 *amount in line 18 raised on behalf of other municipalities 19 m unicipeuu y ANALYSIS OF CAPITAL GRANTS CORPORATION of the MUNICIPALITY OF AND OWN EXPENDITURES CLARINGTON for the year ended December 31, 1993 10 APITAL GRANTS TOTAL Ontario Canada Other OWN grants grants municipalities EXPENDITURES 1 2 3 4 $ $ $ $ General government 1 805,534 Protection to persons and property 33,43 7 - Fire 2 Police 3 Conservation authority 4 Protective inspection and control 5 1,000 6 Subtotal 7 34,437 Transportation services Roadways 8 1,640,577 3 535 620 Winter control 9 Transit 10 Parking 11 16,655 Street lighting 12 1 ,136 506,313 Air transportation 13 14 Subtotal 15 1,640,577 1,336 4-059- 88 Environmental services Sanitary sewer system 16 Storm sewer system 17 Waterworks system 18 Garbage collection 19 Garbage disposal 20 Pollution control 21 22 Subtotal 23 Health services Public health services 24 Public health inspections and control 25 Hospitals 26 Ambulance services 27 Cemeteries 28 14,642 29 Subtotal 30 14,642 Social and family services General assistance 31 Assistance to aged persons 32 Assistance to children 33 Day nurseries 34 35 Subtotal 36 Recreation and cultural services Parks and recreation 37 540,842 Libraries 38 91,999 Other cultural — Museums 39 9,397 Subtotal 40 642,238 Planning and development Planning and zoning 41 Commercial and industrial 42 86,767 Residential development 43 Agriculture and reforestation 44 Tile drainage/shoreline assistance 45 46 Subtotal 47 86,767 Electricity 48 Gas 49 Telephone 50 Total 51 " uiuupWILy ANALYSIS OF NET LONG TERM CORPORATION of the MUNICIPALITY OF LIABILITIES BY FUNCTION as at December 31, 1993 CLARINGTON 11 (Formerly Town of Newcastle) 1 General government 1 2,026,818 Protection to persons and property Fire 2 Police 3 Conservation authority 4 Protective inspection and control 5 6 Subtotal 7 --- Transportation services Roadways 8 Winter control 9 Transit 10 Parking 11 Street lighting 12 380,000 Air transportation 13 14 Subtotal 15 380,000 Environmental services Sanitary sewer system 16 Storm sewer system 17 233,333 Waterworks system 18 Garbage collection 19 Garbage disposal 20 Pollution control 21 22 Subtotal 23 Health services Public health services 24 Public health inspections and control 25 Hospitals 26 Ambulance services 27 Cemeteries 28 29 Subtotal 30 --- Social and family services General assistance 31 Assistance to aged persons 32 Assistance to children 33 Day nurseries 34 35 Subtotal 36 --- Recreation and cultural services Parks and recreation 37 --2,432,182 Libraries 38 Other cultural 39 Subtotal 40 2,432,182 Planning and development Planning and zoning 41 Commercial and industrial 42 Residential development 43 Agriculture and reforestation 44 Tile drainage/shoreline assistance 45 57,020 46 Subtotal 47 57,020 Electricity - Clarington Hydro Electric Commission 48 1,596,869 Gas (Formerly Newcastle Hydro Electric Commission) 49 Telephone 50 Total 51 ANALYSIS OF LONG TERM LIABILITIES AND COMMITMENTS for the year ended December 31, 1993 1 1. Calculation of debt burden of the municipality All debt issued by the municipality, predecessor municipalities and consolidated entities To Ontario and agencies 1 613,333 To Canada and agencies 2 To other 3 Subtotal 4 613,333 Plus: All debt assumed by the municipality from others 5 6,132,377 Less: All debt assumed by others Ontario 6 Schoolboards 7 Other municipalities 8 19,488 Subtotal 9 19,488 Less: Ministry of the Environment debt retirement funds —sewer 10 —water 11 Own sinking funds (actual balances) —general municipal 12 —enterprises and other 13 Subtotal 14 Total 15 6,726,222 .Amount reported in line 15 analyzed as follows: Sinking fund debentures 16 Installment (serial) debentures 17 6,112,689 Long term bank loans 18 Lease purchase agreements 19 Mortgages a 20 Ministry of the Environment 22 - Ontario Housing Action Program Loans 23 233,333 - Street Smart Lighting Program Loan 24 2. Total debt payable in foreign currencies(net of sinking fund holdings) U.S. dollars—Canadian dollar equivalent included in line 15 above 25 32,869 —par value of this amount in U.S. dollars 26 32,000 Other —Canadian dollar equivalent included in line 15 above 27 —par value of this amount in _________ 28 3. Interest earned on sinking funds and debt retirement funds during the year $ Own funds 29 Ministry of the Environment—sewer 30 —water 31 $ 4. Actuarial balance of own sinking funds at year end 32 5. Long term commitments and contingencies at year end $ Total liability for accumulated sick pay credits 33 210.450 Total liability under OMERS plans —initial unfunded (payable over years) (number of employees ) 34 —actuarial deficiency (payable over years) 35 Total liability for own pension funds —initial unfunded (payable over years) (number of employees ) 36 —actuarial deficiency (payable over years) 37 Outstanding loans guaranteed (payable over years) 38 Commitments and liabilities financed from revenue, as approved by the Ontario Municipal Board or Council, as the case may be —hospital support 39 —university support 40 —leases and other agreements 41 284,301 Other (specify) . 42 43 44 Total 45 494,751 CORPORATION of the MUNICIPALITY OF CLARINGTON 12 (Formerly Town of Newcastle) 6. Ministry of the Environment Provincial Projects accumulated total outstanding debt surplus (deficit) capital obligation charges 1 2 3 Water projects -for this municipality only 46 -share of integrated project(s) 47 Sewer projects -for this municipality only 48 -share of integrated project(s) 49 principal interest 7. 1993 Debt Charges 1 2$ $ Recovered from the consolidated revenue fund -general tax rates 50 249,000 493,024 -special area rates and special charges 51 38,845 7,644 -benefitting landowners 52 68 649 13,168 -user rates (consolidated entities) 53 Recovered from reserve funds 54 Recovered from unconsolidated entities -hydro 55 47,000 112,633 -gas and telephone 57 -Subdivider Deposit 56 10,000 - 58 - 59 Total 78 413,494 626.4 9 8. Future principal and interest payments on existing net debt recoverable from the recoverable from recoverable from consolidated revenue fund reserve funds unconsolidated entities principal interest principal interest principal interest 1 2 3 4 5 6 1994 60 400,883 503,794 10 1995 61 426,033 466,445 116 462 145 180 1996 62 453,323 425,236 107,000 135,210 1997 63 486,343 381,577 116,000 126,047 1998 64 504,824 334,938 126,000 115,592 1999-2003 65 2,857,947 845 824 1 2 2004 onwards 79 -- Interest to be earned on sinking funds*69 Downtown revital- ization program 70 Total 71 5,129,353 2 957 814 1,596,869 916,015 *includes interest to be earned on Ministry of the Environment debt retirement funds 9. Future principal payments on expected new debt 1 1994 0 1995 72 1995 73 6,940 1997 74 6,940 75 6,940 1998 76 6,940 Total 77 27,760 10. Other notes (attach supporting schedule as required) CONTINUITY OF UPPER TIER AND SCHOOL BOARD LEVIES for the year ended December 31, 1993 balance at beginning amounts supplementary to UPPER TIER of year requisitioned taxes expe Included in general mill rate for upper tier purposes $ $ $ General requisition 1 4,394 9,790-232 102,961 9,89 Special purpose requisitions Water rate 2 Transit rate 3 Sewer rate 4 Library rate 5 Road rate 6 7 8 9 10 Subtotal levied by mill rate—general 11 4,394 Special purpose requisitions Water 12 Transit 13 Sewer 14 Library 15 16 17 Subtotal levied by mill rate—special areas 18 Special charges Water/Sewer Charges & Garbag49 1,339,557 1,393,615 1 ,39 Direct water billings Disposal 20 Sewer surcharge on direct water billings . 21 Total region or county 22 1,343,951 11,183,847 102,961 11,28E PUP balance at fees, beginning amounts supplementary of tr of year requisitioned taxes licer SCHOOL BOARDS 1 2 3 Elementary public (specify) • Northumberland/Newcastle Board of 30 4,090 1 2 1 2 Education 31 Elementary separate (specify) 892 1,744,058 22,684 Peterborough/Victoria/Northumberland 40 and Newcastle Roman Catholic School 41 Board 42 Secondary public (specify) 3,254 12,849,6 21 130,711 Northumberland/Newcastle Board of 50 Education 51 Secondary separate (specify) (884) 1,846,016 24,025 Peterborough/Victoria/Northumberland 70 and Newcastle Roman Catholic School 71 Board 72 7,352 31,468,309 330,339 Total school boards 36 -,I Uri l Cl pa l I u, CORPORATION OF THE MUNICIPALITY OF CLARINGTON 13 (Formerly Town of Newcastle) telephone share of and share of payments balance amount telegraph Provincial in lieu of total at end ed levied taxation grants taxes other raised of vear a 6 8 9 10 12 11 $ $ $ $ $ $ $ 9,720,201 166,188 11,698 9,898,087 9,288 �i 9,720,201 166,188 11,698 9,898,087 9,288 11 i i i I 18 203,932 203 932 149,874 19 I 20 21 308 9,924,133 166,188 11,698 10,102,019 159,162 22 telephone share of pupils' re and payments fees,share balance r total amount telegraph in lieu of of trailer total at end expended levied taxation taxes licences raised of year 5 6 7 8 9 10 11 261,898 11,182 30 31 1,766,742 1,743,384 21 752 1 5 1 40 41 42 =2,980,332 12,762,109 213,173 9,149 12,984,431 7,353 50 51 1,870,041 1,850,936 17,402 1,705 1,870,043 (882) 70 71 72 1,798,648 1,269,076 514,225 23,641 31,806,942 15,646 36 CONTINUITY OF RESERVES CORPORATION of the MUNICIPALITY OF to AND RESERVE FUNDS CLARINGTON 15 for the year ended December 31, 1993 Formerly Town of Newcastle 1 Balance at the beginning of the year 1 22,471,026 Revenues 3,162,139 Contributions from revenue fund 2 Contributions from capital fund 3 Development Charges Act 67 1,493,315 Lot levies and subdivider contributions 60 450,112 Recreational land(the Planning Act) 61 82,258 Investment income—from own funds 5 —other 6 878,168 Contribution from Others 9 7,711,014 Parking Revenue 10 117,970 11 12 Total revenue 13 13,894,976 Expenditures Transferred to capital fund 14 Transferred to revenue fund 15 Charges for long term liabilities—principal and interest 16 63 20 21 Total expenditure 22 3,911,085 Balance at the end of the year for: Reserves 23 6,029,486 Reserve Funds 24 26,425,431 Total 25 32,454,917 analysed as follows: Working funds 26 Contingencies Ministry of the Environment fund for renewals, etc. 27 —sewer 28 —water Replacement of equipment 30 4,442,334 Sick leave 31 45,845) Insurance 32 Workers' compensation Capital expenditure—general administration 34 462,215 —roads 35 116,822 —sanitary and storm sewers 36 5,872 —parks and recreation 64 2,272,102 —library 65 849,267 —other cultural 66 219,031 —water —transit 39 ( 492) —housing 40 3,076 —industrial development 41 423,987 —other and unspecified 42 7,445,156 Development Charges Act 68 2,706,110 Lot levies and subdivider contributions 44 9,140,397 Recreational land (the Planning Act) 46 2,007,222 Parking revenues 45 263,454 Debenture repayment 47 823,907 Exchange rate stabilization 48 Waterworks current purposes 49 Transit current purposes 50 Library current purposes 51 . Fire Primary Response 52 142,097 . Courtice OHAP 53 30,727 - Tax Write Off Reserve 54 220,072 . Technical Services Reserve 55 7,166 - Legal, Consulting, Professional Fees Reserve 56 122,388 . Election Expenses Reserve 57 75,000 Total 58 32,454,917 ANALYSIS OF CONSOLIDATED YEAR END CORPORATION of the MUNICIPALITY OF BALANCES CLARINGTON 16 as at December 31, 1993 (Formerly Town of Newcastle) 1 2 ASSETS $ $ Current assets portion of cash not in chartered banks Cash 1 31,462,022 Accounts receivable Canada 2 196,884 Ontario 3 786,274 Region or county 139,418 Other municipalities 4 School boards 5 6 portion of taxes Waterworks 7 receivable for Other (including unorganized areas) 8 1,394,821 business taxes Taxes receivable Current year's levies 1 4,450,294 163 606 Previous year's levies 9 10 1,770,842 50 856 Prior years' levies 11 816,076 21,139 Penalties and interest 12 791,434 23,740 Less allowance for uncollectables 13 ( 27,280) ( 27 280 ) Investments (market value S Canada 14 Provincial Municipal 15 Other 16 O 17 portion of line 20 Other current assets 633 for tax sale/tax Capital outlay to be recovered in future years 18 426 Other long term assets 19 6,726,222— ,726 222 registration 20 Total 21 48 933 640 LIABILITIES portion of Ioans not Current liabilities from chartered hanks Temporary loans—current purposes 22 —capital—Ontario 23 —Canada 24 —Other 25 Accounts payable and accrued liabilities Canada 26 Ontario 27 Region or county 28 Other municipalities 29 School boards 30 1,605 Trade accounts payable 31 3,805,363 Other 32 77,258 Other current liabilities 33 3,156,375 Net long term liabilities Recoverable from the Consolidated Revenue Fund —general tax rates 34 4,459,000 —special area rates and special charges 35 —benefitting landowners 36 —user rates (consolidated entities) 37 Recoverable from Reserve Funds 38 Recoverable from unconsolidated entities 39 1,596,869 Less: Own holdings 40 ( ) Reserves and reserve funds 41 32,454,917 Accumulated net revenue (deficit) General revenue 42 2,410,479 Special charges and special areas (specify) Street Lights 43 (4,087) 44 45 46 Consolidated local boards (specify) Transit operations 47 Water operations 48 Libraries 49 6,997 Cemeteries 50 Recreation, community centres and arenas 51 Museums 52 .B IA 53 15,987 54 55 Region or county 56 School boards 57 Unexpended capital financing/(unfinanced capital outlay) 58 18,386 Total 59 48,933,640 STATISTICAL DATA ,for the year ended December 31, 1993 1. Number of continuous full time employees as at December 31 1 Administration 1 Non-line Departmental Support Staff 2 Fire 3 Police 4 Transit 5 Public Works 6 Health Services 7 Homes for the Aged 8 Other Social Services 9 Parks and Recreation 10 Libraries 11 12 Planning 12 Total 13 1 187 continuous full time employees December 31 Other 1 2 2. Total expenditures during the year on: $ $ Wages and salaries 14 7,207,944 1 688 441 Employee benefits 15 1,395,176 97,661 l 3. Reductions of tax roll during the year(lower tier municipalities only) Cash collections: Current year's tax 16. Previous years' tax 17 Penalties and interest 18 937,745 Subtotal 19 54,215,040 Discounts allowed 20 Tax adjustments under section 363 and 364 of the Municipal Act —amounts added to the roll 22 ( ) —amounts written off 23 Tax adjustments under sections 421, 441, and 442 of the Municipal Act —recoverable from upper tier and school boards 24 —recoverable from general municipal accounts 25 Transfers to tax sale and tax registration accounts 26 The Municipal Elderly Residents' Assistance Act—reductions 27 —refunds 28 Other(specify) 80 Total reductions 29 Amounts added to the tax roll for collection purposes only 30 191,496 Business taxes written off under subsection 441 (1) of the Municipal Act 81 NIL t 4. Tax due dates for 1993 (lower tier municipalities only) Interim billings: Number of installments 31 2 Due date of first installment (MMDDYY) 32 02/26/93 Due date of last installment (MMDDYY) 33 04/23/93 Final billings: Number of installments 34 2 Due date of first installment (MMDDYY) 35 06/30/93 Due date of last installment (MMDDYY) 36 Supplementary taxes levied with 1994 due date 37 $ NIL 5. Projected capital expenditures and long term long term financing requirements financing requirements as at December 31 approved by submitted but not forecast not yet gross the O.M.B. yet approved by the submitted to the expenditure or council O.M.B_or council O.M.B.or council 1 2 3 4 Estimated to take place $ $ $ $ In 1994 58 In 1995 59 11,457,541 In 1996 60 10 392,945 1,750,000 In 1997 61 8,190 641 815,000 In 1998 62 13,796,557 Total 63 54,489,299 balance in fund loans outstanding 1 2 6. Ontario Home Renewal Plan trust fund at year end 82 5 2,523 18,6 7 2 CORPORATION of the MUNICIPALITY OF 1 CLARINGTON 17 (Formerly Town of Newcastle) 7. Analysis of direct water and sewer billings as at December 31 water number of 1993 billings residential residential all other units units properties 2 3 4 I $ $ In this municipality 39 In other municipalities (specify municipality) 40 41 42 43 64 sewer number of 1993 billings residential residential all other units units properties 1 2 3 In this municipality 44 In other municipalities (specify municipality) 45 46 47 48 65 water sewer Number of residential units in this municipality receiving municipal water 1 2 and sewer services but which are not on direct billing 66 8. Selected investments of own sinking fund§ as at December 31 other own municipalities, municipality school boards Province Federal i 2 3 4 Own sinking funds 83 9. Borrowing from own reserve funds 1 $ Loans or advances due to reserve funds as at December 31 84 952,313 10. Joint boards consolidated by this municipality this municipal- for contribution ity's share of total board from this total municipal computer expenditure municipality contributions use only 1 2 3 4 $ $ °lo name of joint boards 53 54 55 56 57 11. Applications to the Ontario Municipal tile drainage shoreline assist- Board or to Council ance,downtown revitalization other other electricity submitted submitted gas,telephone to O.M.B. to council total 1 2 4 3 Approved but not financed as at Dec.31, 1992 67 1 2 1 112,334 $ 1 20 105 Approved in 1993 68 824,2 25 824,225 Financed in 1993 69 1 1 750 000 1,219,171 No long term financing necessary 70 6139600 122,334 74,225 810,159 Balance approved but not financed as at Dec.31, 1993 71 Applications submitted but not approved as at December 31. 1993 72 69,400 -- -- __ 12. Forecast of total revenue fund expenditures 1994 1995 1996 1997 1998 1 2 3 4 5 73 $ $ $ $ $ 24,438,656 25,660,588 26,943,618 28,290,799 29,705,339 Deloifte & buche /0 Bank of Commerce Building Telephone: (416) 579-8202 2 Simcoe Street South Toronto area: (416)686-8249 P.O. Box 800 Telecopier: (416) 579-3388 Oshawa, Ontario L1 H 7N1 AUDITORS' REPORT ON SCHEDULE 13 OF THE FINANCIAL INFORMATION RETURN To the Ministry of Municipal Affairs: At your request, we have audited Grant Information Schedule 13 of the Financial Information Return of the Corporation of the Municipality of Clarington (formerly the Corporation of the Town of Newcastle) for the year ended December 31, 1993, prepared in accordance with the "Instructions for Completing the 1993 Financial Information Return", issued by the Ministry of Municipal Affairs. This financial information is the responsibility of the Town's management. Our responsibility is to express an opinion on this financial information based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial information is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial information. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial information. In our opinion, this schedule presents fairly, in all material respects, the Grant Information shown therein in accordance with the "Instructions for Completing the 1993 Financial Information Return" issued by the Ministry of Municipal Affairs. Chartered Accountants April 29, 1994 GRA,�I INFORMATION CORPORATION of the MUNICIPALITY OF �� CLARINGTON for the year ended December 31, 1993 18 (Formerly Town of Newcastle) ANALYSIS OF REVENUE FUND REVENUES 1 Note: Upper tiers use column 4 only. upper tier own purposes purposes 2 4 Taxation $ $ Direct water billings on ratepayers - own municipality 2 --- --- Sewer surcharge on direct water billings - own municipality 4 --- --- Payments in lieu of taxes Subtotal 18 11,698 2,143,021 2LT ANALYSIS OF TAXATION LOCAL TAXABLE ASSESSMENT residential commercial and farm and industrial business I. Own purposes 1 2 3 (a) Levied by mill rate $ $ $ General 30 police villages at reduced rates 31 farms at reduced rates 32 TAXES LEVIED commercial and industrial business total 7 8 12 $ $ $ Subtotal levied by mill rate 1 1 321 501 544 671 Share of telephone and telegraph taxation 2 681 Total own purposes taxation 4 II. Upper tier purposes Subtotal levied by mill rate 5 1 202 660 494 042 Share of telephone and telegraph taxation 6 166 188 Total upper tier taxation 8 10,090'321 ANALYSIS OF CAPITAL OPERATIONS 5 1 Other financing Prepaid special charges 24