2014 annual report by eSolutionsGroup Ltd

2014 ANNUAL REPORT

Northumberland County is committed to complying with the Accessibility for Ontarians with Disabilities (AODA) Act and all standards under it in order to create a barrier-free Ontario. The County is committed and guided by the four core principles of dignity, independence, integration and equal opportunity, and supports the full inclusion of persons as set out in the Canadian Charter of Rights and Freedoms, and the AODA. This document is available in an accessible format, upon request.

2014 ANNUAL REPORT

2014 Annual Report The 2014 Annual Financial Report has been prepared in an electronic format and is available on the Countyâ&#x20AC;&#x2122;s website at www.northumberlandcounty.ca/2014annualreport The Corporation of the County of Northumberland Financial Report 2014 For the fiscal year ending December 31, 2014 Cobourg, Ontario, Canada

Not for reproduction without permission.

2014 ANNUAL REPORT

Table of Contents Introductory Section County Council

About Northumberland County

Message from the Warden

Our Vision, Mission and Values

Journey Through Northumberland

Organizational Structure

County Services

2014 Key Accomplishments

Message from the Treasurer

Financial Management Processes

County of Northumberland Financial Statements Management Report

Independent Auditorâ&#x20AC;&#x2122;s Report

Consolidated Statement of Financial Position Consolidated Statement of Operations and Accumulated Surplus Consolidated Statement of Change in Net Financial Liabilities Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

40 41 42

Financial Statement Section

Trust Funds Financial Statements

2014 Financial Year in Review

Independent Auditorâ&#x20AC;&#x2122;s Report

Statement of Financial Position

2014 Financial Statement Overview

Consolidated Statement of Financial 26 Position Consolidated Statement of Operations 28 Consolidated Statement of Change in 33 Net Financial Assets Consolidated Statement of Cash Flows 33 Tangible Capital Assets Overview

Reserves Overview

Investments Overview

2014 ANNUAL REPORT

Statistical Section Five Year Financial Review

Contact Information

2014-2018 County Council

Marc Coombs 2015 Warden of the County, Mayor of the Township of Cramahe

Gil Brocanier Mayor of the Town of Cobourg

John Logel Mayor of the Township of Alnwick/ Haldimand

Mark Lovshin Mayor of the Township of Hamilton

Hector Macmillan Mayor of the Municipality of Trent Hills

Bob Sanderson Mayor of the Municipality of Port Hope

Mark Walas Mayor of the Municipality of Brighton

2014 ANNUAL REPORT

About Northumberland County Northumberland County is a thriving, southeastern Ontario community. It is easily accessible from Hwy, 401, exits 456 (Port Hope) through to 509 (Brighton.) How to Find Us 

Major Canadian cities to the east are Ottawa (343 km) and Montreal (430 km.)



Boaters can choose from many access points along Lake Ontario, Rice Lake and the TrentSevern Waterways



VIA Rail travels parallel to the Lake Ontario shoreline



Within a day’s drive of most large northeastern US cities

Population 

86,419

Employment 

Total Experienced Labour Force (aged 15 and over) 52,690 (2012)



Employment Rate 55%

What we offer • a range of living experiences from historic towns to scenic rural areas • outdoor adventures—37 trails, access to the Trent-Severn Waterway and Lake Ontario, 15 conservation areas, 2 provincial parks, 2 forests and 1 nature reserve • a place to relax—the rolling hills featuring historic spas & B & B’s • vibrant arts and heritage—exceptional architecture, unique performance venues, music and galleries, historic main streets • farm fresh destinations—50 farm-gate destinations and the Apple Route

Special Places 

Port Hope and Area—historic lakeshore, early churches, unique downtown



Cobourg and Rice Lake—Cobourg waterfront and historic downtown, Roseneath carousel



Rolling Hills and Central Arts—shops, Grafton Town Hall, Peter’s Wood Nature Trail



Brighton, Beaches and Big Apple—Wicklow and Presqu’ile beaches, Proctor House, barn theatre, Apple Route



Trent Hills—chocolate and cheese factories, local craft beer, river-side townsCampbellford and Hastings

2014 Tax Rates (County only)**  

Industrial: 0.0124077 Commercial: 0.071484



Residential: 0.0047178



Multi-Residential: 0.0104546

(**Municipal and education in addition)

2014 ANNUAL REPORT

About Northumberland County

The County of Northumberland is the upper tier level of municipal government that weaves together seven diverse, yet complementary municipalities: Township of Alnwick Haldimand http://www.alnwickhaldimand.ca

Township of Cramahe http://www.visitcramahe.ca

Municipality of Brighton http://www.brighton.ca

Township of Hamilton http://www.hamiltontownship.ca

Town of Cobourg http://www.cobourg.ca

Municipality of Port Hope http://www.porthope.ca

Municipality of Trent Hills http://www.trenthills.ca

We also value our long-standing relationship with Alderville First Nation.

2014 ANNUAL REPORT

Message from the Warden On behalf of Northumberland County Council and staff, I am pleased to present the second Annual Report for Northumberland County, covering activity ending December 31, 2014. This Report outlines the opportunities that County government is pursuing, and the investments being made to ensure residents continue to benefit from quality programs and services, and Northumberland continues to thrive. As we focus on sound financial management practices, this annual report is another method of promoting accountability while underscoring the County’s commitment to meeting the needs of residents.

It takes forethought and a committed Council to realize a vision and make it a reality. In 2014, County Council made clear decisions to support balanced, innovative initiatives that contribute to local prosperity and quality of life. Investment in the Ontario Agri-Food Venture Centre (OAFVC), hosting the Ontario ParaSports Games, establishing a County-level Land Use Planning function, supporting community members through the development of an accessible trail in the County Forest, implementing modern systems of care through the Paramedics and the Golden Plough Lodge, and supporting staff to provide excellent customer service highlight the County’s commitment to excellence in public service and planning for a sustainable future. Council’s decisions continue to reinforce the strong and stable foundation. Our soon to be released 2015-2019 Strategic Plan continues to build on Northumberland County’s vision to “bring together people, partnerships and possibilities for a strong and vibrant Northumberland County.” The achievements outlined in the Annual Report and the Strategic Plan, as well as planned future initiatives, turn this vision into a reality. It is my hope that Northumberland County will continue to prosper and evolve with changing needs while continuing to maintain this strong financial position. Council and staff look forward to working with community and government partners to continue delivering necessary programs and service that generate meaningful possibilities for all residents of Northumberland County. Marc Coombs Warden Northumberland County

2014 ANNUAL REPORT

To bring together people, partnerships and possibilities for a strong and vibrant Northumberland County.

To be a best practices leader of County government, and a collaborative partner with our member municipalities and community partners.

Our Values The County has a set of values – shared beliefs – that guide us toward our ultimate goals and unite us along the way. In all of our actions and decision-making, we reference these values:

 Mutual Trust & Respect

 Care & Support

 Honesty & Integrity

 Accountability

 Collaboration & Communication

 Innovation & Excellence

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Journey Through Northumberland County Services Here's what we do: Northumberland County provides a number of services from many departments including: Corporate Services, Communications, Finance & Treasury, Economic Development & Tourism, Community & Social Services, Transportation & Waste as well as Northumberland Paramedics and our Long Term Care Home, Golden Plough Lodge.

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County Organizational Structure Chief Administrative Officer (CAO) (Vacant)

Lisa Ainsworth, Director, Corporate Services

Ellen Armstrong, Acting Director, Communications

Dan Borowec, Director, Economic Development & Tourism

Mark Darroch, Director, Community & Social Services

Clare Dawson, Administrator, Golden Plough Lodge

William Detlor, Chief, Northumberland Paramedics

Jennifer Moore, Acting CAO & Director, Finance/Treasurer

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Mobushar Pannu, Director, Transportation, Waste & Facilities

County Services Communications

Corporate Services



Provide County information that is timely, accurate, clear, responsible and responsive



Enhance two-way communications capacity and improve stakeholder relationships



Accessibility

Deliver communications products that reflect and achieve organizational goals



County Clerk



County Forest



Health, Safety & Emergency Planning



Human Resources, Payroll & Benefits



Land Use Planning

•

Records Management & Archives



Community and Social Services 

Developing, delivering, and managing a range of services that help people in the community



Work with community partners to ensure vulnerable residents have the tools and supports to move forward in their lives



Services include:



Income Services



Children’s Services



Employment & Support Services



Housing and Homelessness Services



Community Outreach



Food 4 All Warehouse

•

Provide leadership and direction to County staff in a number of corporate service areas including:

Operate Community Service Hubs

2014 ANNUAL REPORT

County Services Finance & Treasury • Provide supports to internal and external partners to be financially strong and sustainable •

Lead County financial services with efficiency, keeping in mind areas for continuous improvement

•

Budget development; operating and capital financial plans

Economic Development & Tourism 

Create economic innovation and prosperity



Provide leadership and support of coordinated economic development activities in Northumberland County

•

Record and report all financial transactions, collection and investments



Services include:

•

Perform purchasing functions and implement financial policies and internal controls

•

Risk management



Information—central source of data for potential investors Referral—support for attraction and retention strategies Coordination—strategic initiatives in the areas of broader economic development, immigration strategies, business start ups, agriculture

Programs include: 

The Ontario Agri-Food Venture Centre (OAFVC)



The Business Advisory Centre of Northumberland

Long Term Care (Golden Plough Lodge) •

Provides a home for adults whose needs can no longer be met within the community

•

Committed to supporting individuals to maintaining a life with purpose, dignity , choice and respect

•

Provide these services: •

Accommodation



Business Immigration Portal

•

Hospitality



Prosper in Northumberland (PiN)

•

Health



Tourism Northumberland

2014 ANNUAL REPORT

County Services Paramedic Services •

Provide land ambulance services throughout the County

•

Transport those in need of further medical care to appropriate medical facilities

•

Ensure that all Paramedics maintain current health care skills to ensure quality of care and continuous improvement

•

Deliver community programs to educate the public on the use of EMS and 911, as well as the Northumberland Paramedics

2014 ANNUAL REPORT

Transportation, Waste & Facilities 

Maintain the County roads, bridges, culverts and drainage systems



Provide summer and winter maintenance of County roads



Responsible for the collection, processing and disposal of waste and recyclables (including yard waste, household hazardous waste and electronic waste)



Services include maintenance and operation of: 

the Material Recovery Facility (MRF)



2 waste transfer stations



1 operational landfill site



6 closed landfill sites



Lead for the oversight of all County-owned facilities including buildings, infrastructure and grounds



Implement all Capital building projects

2014 Key Accomplishments

2014 ANNUAL REPORT

Economic Renewal & Prosperity 

Successfully bid on and hosted the 2014 Ontario ParaSports Games, drawing over 300 athletes, coaches and officials to Northumberland County.



Completed 95% of the construction on the innovative Ontario Agri-Food Venture Centre expanding business opportunities for farmers and food entrepreneurs. This project has secured $1.2 million in funding contributions from the federal and provincial governments.



Hosted familiarization tours of County tourist sites to increase interest and visitation to Northumberland.



Successfully transferred the Business Advisory Centre Northumberland (BACN) under County oversight, resulting in enhanced service delivery to east Northumberland.



Completed the development of the County Official Plan, which will guide land use and development in support of long-term economic growth and sustainability.



Established a Land Use Planning function within the County.

2014 ANNUAL REPORT



Held a successful ‘Doors Open’ Northumberland campaign in coordination with province-wide ‘Doors Open’ activities, drawing tourists to Northumberland by featuring cultural, archival and heritage venues such as cinemas, theatres, gardens, churches, and museums.



Implemented Geographic Information System (GIS) strategic initiatives including the purchase and implementation of a server and development of 2 GIS web applications.



Launched a newly designed Northumberland Tourism website providing a key communication portal for visitors.

Sustainable Infrastructure & Services 

Completed the Long-Term Waste Management Master Plan (LTWMMP) advancing the County’s vision of diverting waste from landfill sites to create sustainable infrastructure and boost environmental health.



Planted 1800 mixed oak and pine trees in the County Forest enhancing ecological heritage.



Implemented Records Destruction Procedures increasing accountability.



Successfully transitioned the Seymour landfill facility into a transfer station.



Implemented improvements in Social Services technology including the Social Assistance Management System (SAMS), VisionCraft cheque system and Yardi (Housing) system upgrades.



Implementation of Maintenance Care Tracking System Software at the Golden Plough Lodge.



Completed and received approval for the County’s first Asset Management Plan providing a critical first step in understanding the County’s infrastructure challenges and developing future funding strategies.



Installed new playgrounds and landscaped the surrounding areas at 2 Port Hope housing units.



Completed a 5 year Energy Conservation Plan.



Replaced: 

equipment at the MRF and landfill sites (Skidsteer and excavator)



equipment for Roads (1-tandem unit snowplow and 2-1/2 tone patrol trucks)



2 ambulances



Paramedic medical response bags



Added one ambulance to the Paramedic fleet to ensure timely response and expand the reach of services.



Equipped all ambulances as mobile wireless hotspots allowing Paramedics to be better able to communicate critical patient information.



Updated the 10 year long-term financial plan including debt and reserve funding plans.

Re-paved 18.25 kms of County Roads, surface treated 130.7 kms of County and member municipality roads.

2014 ANNUAL REPORT

Supportive Communities 

Created the County’s first-ever Annual Report supporting improved transparency and accountability.



Held a recognition ceremony for County first responders. Council presented commemorative plaques to representatives of all 19 local services.



Constructed a 3.2 km accessible trail in Northumberland Forest along with new maps for trails.



Implemented new client engagement strategies in Social Services including a video, a variety of feedback mechanisms, launch of social media, a lobby makeover and new brochures.



Selected a new service provider for dental and vision care, improving services for Social Services clients and enhancing accountability for benefits.



Distributed gift cards and food hampers following the 2013 ice storm.



Eliminated the child care fee subsidy wait list, improving access to services.



Collaborated with Northumberland Momentum leadership group to host the County’s first Community Service Fair, providing information about over 30 community agencies to over 100 residents.



Staff organized fundraising campaigns for United Way, Ride for Heart, and Salvation Army Toy Drive.

2014 ANNUAL REPORT



Held the 6th annual Mayors’ Keep the County Clean Challenge, resulting in more than 1,910 volunteers from all seven area municipalities collecting over 14,010 kg of litter from roadsides, parks, nature areas and other public spaces.



Solidified implementation of a more residentcentered model of care at the Golden Plough Lodge to improve quality of life and environment.



Signed a memorandum of understanding and terms of reference to formalize a purchasing cooperative to drive best practices and costsavings.

•

Implemented a new provincial hunger count tracking system through Food 4 All to reduce barriers, streamline processes and improve efficiency of local food banks.

Employer of Choice 

Enhanced staff education and training in resident care behaviour supports and interventions at the Golden Plough Lodge.



Improved paramedic health and safety through the introduction of new uniforms that offer protection against germs and increases their visibility.



Expanded and improved internal communications through the launch of an employee intranet supporting internal information sharing and staff engagement.



Completed an analysis of the current Succession Planning program making revisions and recommendations to directly address noted future skills deficits and employee shortages.



Developed a corporate Time & Attendance Program creating internal efficiencies.



Improved County services by identifying, removing and preventing multiple barriers for people with disabilities, and created a plan for annual accessibility improvements.

Completed and circulated an organizationwide corporate communications survey to understand progress made, successes, and opportunities.

2014 ANNUAL REPORT

Message from the Director of Finance/Treasurer 2014 was another year of great progress for Northumberland County. We delivered on a number of our strategic outcomes in priority areas, continued to focus on key financial plans for the future, and delivered excellent service to our residents. With this in mind, it is my pleasure to provide Northumberland County’s financial statements for the year ending December 31, 2014. This second annual report is intended to convey to stakeholders and residents the County’s 2014 financial performance and information regarding our financial policies and practices. It provides comprehensive information about the allocation of funds throughout 2014 and brings context to the financial statements. There is a review of key corporate accomplishments for the fiscal year while highlighting our financial practices that support the efficient and cost-effective delivery of our programs and services. The foundation of the County’s recent strategy for sustaining and growing our communities has been stable, prudent management of our resources. We have kept increases to the County levy steady at 2.5% for the past 4 years after a decade of volatility, while continuing to deliver vital services, develop innovative programs, and maintain and replace capital assets and equipment. As a result, our financial health continues to improve. Our balanced approach to budgeting resulted in no new debt being assumed in 2014, and our outstanding debt principal now stands at $14 million, down 21% from 2011. We have also built reserves totaling $36.4 million, which will be a critical resource for financing future infrastructure needs. There are many accomplishments to be proud of, but much work still to be done. Managing required investments in the rehabilitation and replacement of capital infrastructure over the longterm is one of the most significant challenges facing the County. A 10-year Capital Works Plan and replacement strategy – implemented in 2011– addresses shorter-term needs related to County assets such as roads, bridges, buildings, social housing and equipment. This plan will ensure that these vital assets remain in good repair for the foreseeable future. A further step in understanding the County’s infrastructure challenges and developing strategies to fund these needs in the future was the completion of the first comprehensive Asset Management Plan in 2014. This was a critical first step in developing a wide-ranging understanding of the County’s infrastructure challenges and developing future funding strategies. Research included in this plan and other studies continues to show that Northumberland County will face a steady growth in population, particularly those aged 60 and over. Responding to the needs of aging residents continues to be a key consideration in planning activities for services

2014 ANNUAL REPORT

ranging from affordable housing and long-term care, to paramedic services, transportation network design, and economic development programs.

We recognize, though, that there are significant infrastructure investments pending: 

The Golden Plough Lodge, the County’s long-term care facility, must be replaced before 2025;



New waste diversion initiatives planned as part of the Long Term Waste Management Master Plan will require funding between now and 2019;



The Transportation Master Plan, currently under development, will project future demands for our network of local roads and highways in order to address community needs over a multiyear planning horizon.

We continue to position the County to manage these expenditures by making annual contributions to our reserves, however, the projected costs will ultimately exceed our available funds. As we work to implement our asset management and program plans in the coming years, supplementary funding from other orders of government will be required. These challenges notwithstanding, the County continues to deliver quality services, with a focus on prosperity, sustainability, community and excellence. In closing, I would like to acknowledge the commitment and hard work of the County Finance team and our internal partners. These individuals demonstrate skill and dedication in delivering solid financial information on which our partners can rely.

As Northumberland County pursues its mission of becoming a “best practices leader in County government”, the Finance Department will contribute to this success by maintaining a high standard of fiscal excellence. Jennifer Moore, B. Comm (Hons.) CPA, CMA A/CAO Director of Finance/Treasurer Northumberland County

2014 ANNUAL REPORT

Financial Management Processes County Business Planning The County goes through a rigorous budgeting and planning process each year. Each operating department develops an annual business plan that is aligned with the Countyâ&#x20AC;&#x2122;s Corporate Strategic Plan. This process looks at programs and services, budgets and key priorities for the year. In addition to the annual budget, the long term plan is reviewed and updated to create a rolling 10 year financial outlook. Financial Statement Preparation County of Northumberland management is responsible for all information contained in the Annual Financial Report. These financial statements and accompanying notes have been prepared using reasonable limits of materiality and within the framework of the accounting principles and disclosure requirements of the Canadian Institute of Chartered Accountants guidelines included in the Public Sector Accounting and Auditing Standards Manual.

confirming that the statements are free from material misstatements. It is the responsibility of the auditor to advise management and the Finance Department Coordinators of any control or operational issues that may be identified during the execution of their audit procedures. Finance Department Coordinators The Finance Department Coordinators are comprised of two members of Council: the current Warden and immediate past Warden. Coordinator meetings are also attended by the CAO, Clerk and Treasurer. The Coordinators are the focal point for communications between Council, the external auditor and management.

Internal Control Management Management maintains appropriate systems of internal and administrative controls designed to provide reasonable assurance that transactions are executed with proper authorization, that assets are properly accounted for and safeguarded, and that the financial information produced is relevant, reliable and timely. External Audit The role of the external auditor, Collins Barrow Kawartha LLP, is to express an independent opinion on the fair presentation of the Countyâ&#x20AC;&#x2122;s financial position and operating results as contained in the Financial Statements,

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2014 Financial Year in Review

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2014 Financial Statement Overview Accumulated Surplus Analysis 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 (20,000,000) (40,000,000) Tangible Capital Assets

Reserves

Unfunded Landfill Closure/PostClosure Liablities

Long Term Debt

Unfunded Employee Future Benefits 2013

2014

The County of Northumberlandâ&#x20AC;&#x2122;s financial statements have been prepared in accordance with the Municipal Act and based on the reporting standards set by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. There are four required financial statements: Statement of Financial Position; Statement of Operations; Statement of Changes in Net Financial Assets; and Statement of Cash Flows. These financial statements provide information on the cost of all of the County activities, how they were financed, investing activities and the assets and liabilities of the County. The information also reflects the full nature and extent of the Countyâ&#x20AC;&#x2122;s financial affairs similar to a private sector financial statement presentation. This chart is a high level overview of the 2014 financial position of the County.

2014 ANNUAL REPORT

Consolidated Statement of Financial Position The consolidated statement of financial position highlights four key figures that together describe the financial position of a Municipal government: (a) cash resources of the Municipality, (b) net financial asset position calculated as the difference between financial assets and financial liabilities, (c) non-financial assets that are normally held for service provision such as tangible capital assets, and (d) accumulated surplus/(deficit). The Countyâ&#x20AC;&#x2122;s accumulated surplus for fiscal year 2014 is $147.9 million (2013 $142.7 million). The accumulated surplus consists of tangible capital assets of $150.8 million; reserves of $36.4 million; offset by unfunded landfill closure and post-closure liability $23.4 million; unfunded employee future benefits liability $1.9 million and long term debt $14 million. Note 9 in the consolidated financial statements provides a detailed breakdown. The Countyâ&#x20AC;&#x2122;s Net Financial Liabilities were $3.1 million in 2014 (2013 $7 million). The decrease was primarily due to a $2.7 million increase of cash and investments, a $1.3 million decrease in long term debt, and an accounts payable and accrued liabilities reduction of $1.1 million. This was offset by a $1.2 million increase in the unfunded landfill closure and employee future benefits liabilities. The increase to investments is a result of an increase to planned and unplanned reserve contributions. The decrease in long term debt was paid down without accumulating new debt. Financial Assets Summary Total Financial Assets as of December 31, 2014 were $45 million (2013 $42.2 million) an increase of $2.8 million. $42.2

$45.0

2013

2014

$32.4 $26.7 $17.4 $10.8

2009

2010

2011

2012

Cash and short term investments at year end 2014 were $42.2 million (2013 $39.5 million) which is an increase of $2.7 million. Concurrent with the growth of reserves the County increased the amount of funds invested. The County adopted a new investment strategy in 2014 by laddering investment terms to ensure liquidity aligned with future financing needs. Utilizing the services of an investment management firm provided broader access to investment vehicles resulting in improved yields realized in the year. All investments are in compliance with requirements under the Municipal Act. Accounts Receivable were $2.8 million at the end of 2014 (2013 $2.8 million).

2014 ANNUAL REPORT

Financial Liabilities Summary Total Liabilities at the end of 2014 were $48.1 million (2013 $49.2 million), a decrease of $1.1 million from the prior year.

$46.6

$46.1

$46.9

2010

2011

2012

$49.2

$48.1

2013

2014

$31.8

2009

Accounts Payable and accrued liabilities were $8.8 million in 2014 (2013 $9.9 million), a decrease of $1.1 million. This is mainly due to provincial funds being advanced in 2013 with projects and service costs being paid in 2014. Employee benefits and other liabilities were $1.9 million in 2014 (2013 $1.7 million), an increase of $0.2 million which fully represents the actuarial estimate. Long term debt is $14.0 million (2013 $15.3 million). The decrease of $1.3 million represents the payment of debt principal. There was no new debt assumed in 2014. Landfill closure and post-closure liability was $23.4 million at the end of 2014 (2013 $22.3 million). The increase of $1.1 million was the result of revisions to future cost estimates based on the trend of actual expenditure increases experienced for landfill maintenance and monitoring. Non-financial assets were $151.0 million as of December 31, 2014 (2013 $149.7 million). Nonfinancial assets consist primarily of tangible capital assets. The increase of $1.3 million reflects asset rehabilitation and replacement.

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Consolidated Statement of Operations The consolidated statement of operations reports the annual surplus/deficit from operations during the accounting period. The statement shows the cost of providing the County’s services, the revenues recognized in the period and the difference between them. Revenues Total revenues in 2014 were $94.9 million (2013 $92.4 million), an increase of $2.5 million. 

Taxation revenues (levy from lower tiers) in 2014 were $46.9 million (2013 $45.7 million), an increase of $1.2 million. 

The County had assessment growth of 1.2 percent in 2014.



County Council approved the 2014 budget which provided for a 2.5% tax levy increase. This reflects an increase of $24.60 for the average single family home.



Funding from the Province of Ontario was $27.6 million in 2014 (2013 $26.5 million), an increase of $1.1 million from the previous year. This increase reflects funding for specific projects such as CPR Bridge rehabilitation and construction of the Ontario Agri-Food Venture Centre.



User charges were $10.0 million in 2014 (2013 $10.0 million). Additional revenues were realized with the County commencing septic inspection services in 2013 and by increased garbage bag tag sales. This was offset by loses from other services areas most notably no timber harvest revenue for the County Forest.



Funding from the Federal government was $3.4 million (2013 $3.5 million), a decrease of $0.1 million due to a change in the Gas Tax allocation formula.



Revenue from rents was $2.3 million in 2014 (2013 $2.3 million). This reflects stable earnings from corporate rents.

2014 ANNUAL REPORT

Revenues continued 

Provincial Offences revenues in 2014 were $1.5 million (2013 $1.6million), a decrease of $0.1 million from the prior year.



2014 investment revenue was $0.6 million (2013 $0.4 million). The increase of $0.2 million reflects the increased funds in reserve accounts. Gains were realized as a result of aligning the term of investments with projected financing needs.



Revenue from other municipalities represents cost recovery. The cost recovery was $1.4 million (2013 $1.5 million), a decrease of $0.1 million.



Revenue from the Waste Diversion Ontario Grant was $0.9million (2013 $0.9 million).

County Revenues (Millions) User Charges $10.0

Federal Gov't $3.5

POA $1.5

Rents $2.3

Other Municipalities $1.4 Investments $0.6 Waste Diversion ON Grants $0.9

Provincial Gov't $27.6

2014 ANNUAL REPORT

Taxation $46.9

Expenses Expenses are broken down into major expense categories: salary, wages and benefits, materials and supplies, contracted services, rents and financial expenses, transfer payments, and amortization. Total expenses in 2014 were $89.6 million (2013 $85.2 million), an increase of $4.4 million. ď&#x201A;§

Labour costs (salaries, wages and benefits) in 2014 were $34.6 million (2013 $32.8 million), an increase of $1.8 million from the prior year. The significant variances were increased benefit costs including OMERS, contract settlements and pay adjustments (cost of living) and additional staffing required for new services such as Land Use Planning, the Business Advisory Centre, and the Ontario Agri Food Venture Centre, or service enhancements.

ď&#x201A;§

Materials and supplies in 2014 were $16.7 million (2013 $14.5 million), an increase of $2.2 million from the prior year. The major drivers for increased materials were fuel and utility costs, winter maintenance and projects in Roads, Waste and Housing. Expenses by Department Ec Dev/ Tourism/ Forest 3% Transportation 19%

Government Services 3%

Transportation 18% Health Services 14%

Environment Services 14%

Social & Family Services (incl. Long Term Care) 35%

2014 ANNUAL REPORT

Social Housing 10%

Expenses continued 

Contracted services in 2014 were $10.4 million (2013 $9.6 million), an increase of $0.8 million from the prior year. The increase is primarily attributed to timing of projects.



Amortization of Tangible Capital Assets in 2014 was $7.9 million (2013 $8.0 million), a decrease of $0.1 million from the prior year.



Loss on disposal of assets in 2014 was $0.4 million (2013 $0.5 million), a decrease of $0.1 million. The change was due to road rehabilitation cost.



Interest charges in 2014 were $0.7 million (2013 $0.8 million) which is $0.1 million less than the prior year as a direct result of reduction in long-term debt liabilities.



External transfers in 2014 were $19.0 million (2013 $19.0 million) consistent with the year prior. Expenses by Type Loss on TCA disposal 0%

Materials 19%

Amortization 9% Transportation 18%

Contracted Services 12%

Rent & Financial 0%

Salaries & Benefits 38%

2014 ANNUAL REPORT

External Transfers 21%

Long-Term Debt Balance Owing December 31, 2014 Ontario Infrastructure Projects Corporation (matures 2015)

Bank Loan – RBC (matures 2017)

$ 113,255

Bank Loan – BMO (matures 2017)

$ 6,907,235

Ontario Infrastructure Projects Corporation (matures 2017)

$ 663,856

Ontario Infrastructure Projects Corporation (matures 2019)

$ 1,343,150

Ontario Infrastructure Projects Corporation (matures 2020)

Ontario Infrastructure Projects Corporation (matures 2028)

$ 1,757,650

Ontario Infrastructure Projects Corporation (matures 2035)

$ 2,451,629

Total

13,965

741,567

$ 13,992,307

The County has $14.0 million in long-term debt at then end of 2014 (2013 $15.3 million), a $1.3 million decrease. Debt principal was paid down in 2014 with no new debt being issued. The County’s debt remains well below the Annual Repayment Limit (ARL) set by the Province which will provide flexibility to fund future capital projects.

2014 ANNUAL REPORT

Consolidated Statement of Change in Net Financial Assets The statement of change in net financial assets (net debt) explains the difference between a municipalityâ&#x20AC;&#x2122;s surplus or deficit for the reporting year and its change in accumulated surplus in the same reporting year. This statement provides the reporting of the acquisition of tangible capital assets and other significant items that impact the difference between the annual surplus/deficit and the change in net financial assets (net debt).

Tangible Capital Assets Overview All County assets as at the end of 2014 have been inventoried, valued, and recorded in the financial reporting system for accounting and reporting purposes. The Countyâ&#x20AC;&#x2122;s net book value of tangible capital assets at the end of 2014 were $150.8 million (2013 $149.4 million). Refer to Note #8 in the Financial Statements for a detailed breakdown of tangible capital asset activity for 2014 as well as the Consolidated Schedule of Tangible Capital Assets (page 54).

Consolidated Statement of Cash Flows The statement of cash flows reports changes in cash and short-term investments resulting from operations and shows how the County financed its activities during the year and met its cash requirements. Tangible Capital Assets by Type 100000 90000

80000 70000 60000 50000 40000 30000 20000 10000 0 Roads & Bridges

Buildings

Land & Equipment & Improvements Computers

Vehicles

Assets Under Construction

2013 Total = $149.4M 2014 Total = $150.8M 2013

2014 ANNUAL REPORT

2014

Reserves Overview Reserves are not reported directly in the financial statements, although they are a key area in the financial management and operations of the County. Reserve balances are consolidated within the Accumulated Surplus position on the Consolidated Statement of Operations. Refer to Note #9 in the Financial Statements for a breakdown of Reserves by Department/Function. Reserves are established by Council on the recommendation of staff. These funds are set aside to help offset future capital needs, obligations, cost pressures and unforeseen events such as extreme weather. They are drawn upon to finance specific purpose capital and operating expenditures as designated by Council, to minimize tax rate fluctuations and to fund on-going programs (ie. Insurance and employee benefits). Reserves balances at the end of 2014 totaled $36.4million (2013 $32.6million), an increase of $3.8 million reflecting operational efficiencies and long-term planning by departments. The reserve balance includes funds carried over from the prior year related to projects underway but not yet completed. County Reserves (Millions) Transportation Social Housing Services $7.5 $4.1 Waste Services $3.6 Facilities $0.8 Economic Development, WSIB (Schedule2) Tourism & Forest $3.5 $0.3 Emergency Social Services Planning $0.7 $0.3 Technological Development $0.6 Ambulance Services $1.2

Golden Plough Lodge $2.7

2014 ANNUAL REPORT

General/Corporate Reserve $11.2

Investments Overview The improved financial position of the County has resulted in increased reserves and liquidity allowing for the investment of significantly more funds. Prior to 2014, excess funds not required for operating liquidity were invested in short term GIC’s held with the County’s financial institution. During 2014, the County adopted a new investment strategy resulting in the transitioning of invested funds for longer term needs from short-term bank held GIC’s into debt securities primarily in the form of high quality Canadian bank issued bonds. This new investment strategy allows the County to meet its investment objectives of: • Preservation of capital with investments held in fixed income securities ranked by Dominion Bond Rating Service as AA (low) or higher • Maximization of yields • Liquidity to meet future cash needs with a laddered portfolio in securities that are tradable. • Conformity with the Municipal Act • Investment in non-pooled securities Operating funds required in the short term during the year were placed on deposit in a high interest investment savings account that is fully cashable. This account provides an advantage over short term locked in GIC’s with full liquidity and improved yields. The County annually reassesses long term financing needs and has appropriate flexibility within the investment portfolio to accommodate changes in future cash flow requirements. Investments at the end of 2014 totaled $37.9 million (2013 $18.3 million) Short Term GIC's $18.3

2014

2013

Cash $4.2 Bonds (AA low or higher) $18.0 Cash $21.2 Bank Deposit Notes $6.0

2014 ANNUAL REPORT

High Interest Investment Savings Account $14.0

CORPORATION OF THE COUNTY OF NORTHUMBERLAND

For The Year Ended December 31, 2014 MANAGEMENT REPORT

The accompanying consolidated financial statements of the Corporation of the County of Northumberland are the responsibility of management and have been approved by Council. The consolidated financial statements have been prepared by management in accordance with Canadian Public Sector Accounting Standards. Financial statements are not precise since they include certain amounts based on estimates and judgements. When alternative accounting methods exist, management has chosen those it deems most appropriate in the circumstances, in order to ensure that the financial statements are presented fairly, in all material respects. The County maintains systems of internal accounting and administrative controls of high quality, consistent with reasonable cost. Such systems are designed to provide reasonable assurance that the financial information is relevant, reliable and accurate and the County's assets are appropriately accounted for and adequately safeguarded.

The County's Council is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving financial statements. Council reviews and approves the County's financial statements for issuance to the members of Council, inhabitants and ratepayers of the Corporation of the County of Northumberland. Council meets periodically with management, as well as the external auditors, to discuss internal controls over the financial reporting process, auditing matters and financial reporting issues, to satisfy themselves that each party is properly discharging their responsibilities and to review the financial statements and the independent auditors' report. The consolidated financial statements have been audited by Collins Barrow Kawarthas LLP in accordance with Canadian generally accepted auditing standards on behalf of the County. Collins Barrow Kawarthas LLP has full and free access to Council.

2014 ANNUAL REPORT

INDEPENDENT AUDITOR’S REPORT To the Members of Council, inhabitants and Ratepayers of the Corporation of the County of Northumberland Report on the Financial Statements We have audited the accompanying consolidated financial statements of the Corporation of the County of Northumberland, which comprise the consolidated statement of financial position as at December 31, 2014, the consolidated statements of operations and accumulated surplus, change in net financial liabilities and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian Public Sector Accounting Standards, and for such internal controls as management determines are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the County of Northumberland as at December 31, 2014 and the results of its operations and cash flows for the year then ended in accordance with Canadian Public Sector Accounting Standards.

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED STATEMENT OF FINANCIAL POSITION At December 31, 2014 2014 $

2013 $

FINANCIAL ASSETS Cash Investments (note 2) Accounts receivable

4,232,533 37,946,802 2,771,684

21,197,928 18,260,222 2,768,456

TOTAL FINANCIAL ASSETS

44,951,019

42,226,606

LIABILITIES Accounts payable and accrued liabilities Long term debt (note 4) Landfill closure and post-closure liability (note 5) Employee future benefits liability (note 6)

8,778,417 13,992,307 23,400,799 1,896,797

9,864,868 15,257,396 22,338,111 1,736,700

TOTAL LIABILITIES

48,068,320

49,197,075

NET FINANCIAL LIABILITIES

(3,117,301)

(6,970,469)

NON-FINANCIAL ASSETS Tangible capital assets (note 8) Prepaid expenses

150,789,035 245,352

149,449,373 215,873

TOTAL NON-FINANCIAL ASSETS

151,034,387

149,665,246

ACCUMULATED SURPLUS (note 9)

147,917,086

142,694,777

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS For the Year Ended December 31, 2014 Budget 2014 $ (Unaudited)

Actual 2014 $

Actual 2013 $

REVENUES Tax levy from lower tiers User charges Government of Canada Province of Ontario Other municipalities Investment income Provincial Offences Act charges (note 11) Rents Federal gas tax earned Waste Diversion Ontario grants Other Donations

46,735,409 10,267,609 982,783 28,061,691 1,200,000 425,000 1,609,970 2,180,141 2,406,318 919,660 214,000 5,708

46,920,603 10,022,496 982,396 27,645,599 1,383,973 637,088 1,461,891 2,271,372 2,430,349 923,821 135,238 47,689

45,683,066 9,977,597 993,201 26,492,965 1,525,405 418,873 1,647,934 2,265,034 2,468,018 887,094 8,294

TOTAL REVENUES

95,008,289

94,862,515

92,367,481

EXPENSES General government Protection services Transportation services Environmental services Health services Social and family services Social housing Economic development, tourism and forest

3,266,810 2,142,674 17,080,075 11,246,585 12,772,511 31,247,341 8,973,238 3,071,209

3,031,753 1,958,752 16,812,421 12,183,198 12,759,755 30,959,306 9,036,549 2,898,472

2,685,107 1,990,392 15,317,996 11,504,557 12,508,539 29,722,474 9,162,362 2,283,297

TOTAL EXPENSES

89,800,443

89,640,206

85,174,724

ANNUAL SURPLUS

5,207,846

5,222,309

7,192,757

ACCUMULATED SURPLUS - beginning of year

142,694,777

135,502,020

ACCUMULATED SURPLUS - end of year

147,902,623

147,917,086

142,694,777

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL LIABILITIES For the Year Ended December 31, 2014 Budget 2014 $ (Unaudited)

Actual 2014 $

Actual 2013 $

5,207,846

5,222,309

7,192,757

8,200,000 (17,294,736) -

7,858,104 (9,684,253) 449,229 37,258 (29,479)

7,966,412 (8,234,198) 542,291 80,594 (3,888)

DECREASE/(INCREASE) IN NET FINANCIAL LIABILITIES

(3,886,890)

3,853,168

7,543,968

NET FINANCIAL LIABILITIES - beginning of year

(6,970,469)

(14,514,437)

(10,857,359)

(3,117,301)

(6,970,469)

ANNUAL SURPLUS Amortization of tangible capital assets Acquisition of tangible capital assets Loss on disposal of tangible capital assets Proceeds on sale of tangible capital assets Increase in prepaid expenses

NET FINANCIAL LIABILITIES - end of year

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED STATEMENT OF CASH FLOWS For the Year Ended December 31, 2014 2014 $

2013 $

5,222,309 (3,228) (29,479) (1,086,451)

7,192,757 563,083 (3,888) 2,525,048

7,858,104 449,229 1,062,688 160,097

7,966,412 542,291 860,244 158,513

13,633,269

19,804,460

CAPITAL Acquisition of tangible capital assets Proceeds on disposal of tangible capital assets

(9,684,253) 37,258

(8,234,198) 80,594

Net decrease in cash from capital transactions

(9,646,995)

(8,153,604)

(37,946,802) 18,260,222

(18,260,222) 21,879,061

(19,686,580)

3,618,839

(1,265,089)

(1,254,556)

(16,965,395)

14,015,139

21,197,928

7,182,789

4,232,533

21,197,928

NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES: OPERATING Annual surplus (Increase)/decrease in accounts receivable Increase in prepaid expenses Increase/(decrease) in accounts payable and accrued liabilities Non-cash charges to operations Amortization of tangible capital assets Loss on disposal of tangible capital assets Increase in landfill closure and post-closure liability Increase in employee future benefits liability Net increase in cash from operating transactions

INVESTING Purchase of investments Disposal of investments Net increase/(decrease) in cash from investing transactions FINANCING Debt principal repayments INCREASE/(DECREASE) IN CASH CASH - beginning of year CASH - end of year

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

The County of Northumberland is an upper tier municipality in the Province of Ontario, Canada. It conducts its operations guided by the provisions of provincial statutes such as the Municipal Act, Municipal Affairs Act and related legislation. 1.

SIGNIFICANT ACCOUNTING POLICIES These consolidated financial statements have been prepared in accordance with the standards in the Chartered Professional Accountants Canada Public Sector Accounting (PSA) Handbook. Significant aspects of the accounting policies are as follows: (a) Reporting Entity These consolidated financial statements reflect the assets, liabilities, revenues and expenses and accumulated surplus of the reporting entity. The reporting entity is comprised of all organizations, committees and local boards accountable for the administration of their financial affairs and resources to the County and which are owned and controlled by the County. These financial statements include: â&#x20AC;˘ Northumberland County Housing Corporation All interfund assets and liabilities and revenues and expenses are eliminated. (b) Trust Funds Trust funds and their related operations administered by the County are not included in these Consolidated financial statements but are reported on separately on the Trust Funds Statement of Continuity and Statement of Financial Position. (c) Tangible Capital Assets Tangible capital assets are recorded at cost which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, if any, of tangible capital assets is amortized on a straight-line basis, commencing in the year of acquisition except for road surface betterments where amortization commences in the year following construction, over the expected useful life of the asset, as follows: Land improvements Buildings Roadways Equipment and computers Vehicles

10 years 50 years 20 to 75 years 5 to 20 years 5 to 10 years

Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and are also recorded as revenue. Tangible capital assets categorized as assets under construction are not amortized until they are put into service.

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

SIGNIFICANT ACCOUNTING POLICIES, continued

(d) Recognition of Revenues and Expenses Revenues and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues in the period in which the transactions or events occurred that give rise to the revenue; expenses are recognized in the period the goods or services are acquired and a legal liability is incurred or transfers are due. (e) Non-financial Assets Tangible capital and other non-financial assets are accounted for as assets by the County because they can be used to provide services in future periods. These assets do not normally provide resources to discharge the liabilities of the County unless they are sold. (f)

Reserves and Reserve Funds Certain amounts, as approved by Council, are set aside in reserves and reserve funds for future operating and capital purposes. Transfers to and/or from reserves and reserve funds are an adjustment to the respective fund when approved.

(g) Deferred Revenue Deferred revenue represents grants, user charges and fees which have been collected but for which the related services have yet to be performed. These amounts will be recognized as revenues in the fiscal year the services are performed. (h) Government Funding Government funding is recognized in the financial statements as revenues in the period in which events giving rise to the transfers occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made. (i)

Use of Estimates Certain items recognized in the financial statements are subject to measurement uncertainty. The recognized amounts of such items are based on the County's best information and judgment. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. The County's significant estimates include: •

The amounts recorded for landfill closure and post-closure care depend on estimates of usage, remaining life and capacity. The provision for future closure and post-closure costs also depends on estimates of such costs;

•

The amounts recorded for amortization and opening costs of tangible capital assets are based on estimates of useful life, residual values and valuation rates;

•

The values of employee future benefits depend on certain actuarial and economic assumptions; and

•

The amount recorded as allowance for doubtful accounts receivable is based on management's estimate of future payments on receivable account balances.

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

SIGNIFICANT ACCOUNTING POLICIES, continued

(j)

Financial Instruments The County's financial instruments consist of cash, investments, accounts receivable, accounts payable and accrued liabilities and long term debt. Unless otherwise noted, it is managementâ&#x20AC;&#x2122;s opinion that the carrying value of the financial instruments approximates their fair values and that the County does not have any significant concentration of currency or credit risk.

INVESTMENTS

TD Bank term deposit, maturing January 15, 2014 and bearing interest of 1.35% per annum. Renaissance high interest savings account. Corporate bonds bearing interest rates between 2.00% and 6.17%, maturing between April 30, 2015 and December 6, 2024.

2014 $

2013 $

13,972,322

18,260,222 -

23,974,480

37,946,802

18,260,222

The County is exposed to interest rate risk as the market value of the fund will generally rise if interest rates fall and conversely fall if interest rates rise. 3.

DEFERRED REVENUE - OBLIGATORY RESERVE FUNDS A requirement of the Chartered Professional Accountants Canada Public Sector Accounting Handbook, is that obligatory reserve funds be reported as deferred revenue. This requirement is in place as legislation and external agreements restrict how these funds may be used and under certain circumstances these funds may possibly be refunded. The continuity of deferred revenue - obligatory reserve funds is as follows: 2014 $

2013 $

Add amounts received: Federal gas tax

2,430,349

2,468,018

Less transfer to operations: Federal gas tax earned

2,430,349

2,468,018

Balance - beginning of year

Balance - end of year

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

LONG TERM DEBT (a) The balance of long term debt reported on the Consolidated Statement of Financial Position is made up of the following: 2014 $

2013 $

113,255

155,354

Long term bank loan, due September 2017, repayable in monthly principal instalments of $32,428, plus interest at 4.93% per annum.

6,907,235

7,296,375

Ontario Strategic Infrastructure Financing Authority due January 2017, repayable in blended semi annual instalments of $141,723 and bears interest at 4.43% per annum.

663,856

909,695

Ontario Strategic Infrastructure Financing Authority due March 15, 2028, repayable in blended semi annual instalments of $89,862 and bears interest at 4.92% per annum.

1,757,650

1,847,566

Ontario Infrastructure Projects Corporation due March 1, 2019, repayable in blended semi annual instalments of $127,039 and bears interest at 4.37% per annum.

1,027,826

1,230,327

25,732

Ontario Infrastructure Projects Corporation due September 15, 2019, repayable in blended semi annual instalments of $35,104 and bears interest at 4% per annum.

315,324

371,236

Ontario Infrastructure Projects Corporation due September 4, 2035, repayable in blended semi annual instalments of $90,923 and bears interest at 4.51% per annum.

2,451,629

2,520,566

Ontario Infrastructure Projects Corporation due May 4, 2020, repayable in blended semi annual instalments of $76,095 and bears interest at 4.15% per annum.

741,567

859,305

Ontario Infrastructure Projects Corporation due May 4, 2015, repayable in blended semi annual instalments of $14,189 and bears interest at 3.2% per annum.

13,965

41,240

13,992,307

15,257,396

Long term bank loan, due July 2017, repayable in blended monthly instalments of $3,764 and bears interest at 2.27% per annum.

Ontario Infrastructure Projects Corporation due March 1, 2014.

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

LONG TERM DEBT, continued

(b) The long term debt in (a) issued in the name of the County 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 and Housing. (c) Interest paid during the year on long term debt amounted to $697,268 (2013 - $753,038). (d) The long term debt reported in (a) of this note is repayable as follows:

2015 2016 2017 2018 2019

2020 and subsequent years

Principal $

Interest $

Total $

1,261,788 1,285,133 6,903,278 636,613 537,871

639,940 583,223 453,609 201,433 173,136

1,901,728 1,868,356 7,356,887 838,046 711,007

10,624,683 3,367,624

2,051,341 1,145,664

12,676,024 4,513,288

13,992,307

3,197,005

17,189,312

LANDFILL CLOSURE AND POST-CLOSURE LIABILITY The liability for landfill closure and post-closure costs of $23,400,799 (2013 - $22,338,111) has been estimated using discounted future cash flows associated with closure and post-closure care activities for the Countyâ&#x20AC;&#x2122;s one operational site and the nine closed sites that the County has obtained from the lower tier municipalities by way of a settlement process (see Note 16). The closure costs include final cover, vegetation and additional monitoring wells. Post-closure costs include monitoring, maintenance of control systems and consulting fees for 25 years after the site is closed. The landfill closure and post-closure liability will be funded from taxation. There are no specific assets designated for settling this liability. The reported liability is based upon estimates and assumptions with respect to events extending over the remaining life of the landfill. The total discounted future cash flows for closure and post-closure cost is estimated at $25,018,687 as at December 31, 2014 (2013 - $24,308,486) using a discount factor of 4% and an inflation rate of 2%. The remaining capacity of the one operational landfill site is estimated at 134,442 m3 (2013 - 174,456 m3) which is 34.5% (2013 - 44.7%) of the siteâ&#x20AC;&#x2122;s total capacity. The remaining operational landfill is expected to reach its capacity in 2017 but is expected to be extended an additional 7 years with Ministry approval to expand the site.

2014 ANNUAL REPORT

CORPORATION CORPORATION OF OF THE THE COUNTY COUNTY OF OF NORTHUMBERLAND NORTHUMBERLAND NOTES NOTES TO TO THE THE CONSOLIDATED CONSOLIDATED FINANCIAL FINANCIAL STATEMENTS STATEMENTS For For the the Year Year Ended Ended December December 31, 31, 2014 2014

EMPLOYEE FUTURE AMOUNTS PAYABLE Under the Workplace Safety and Insurance Board (WSIB), the County is self-insured (Schedule II) and remits payments to the WSIB as required to fund disability payments. The liability recorded of $1,896,797 (2013- $1,736,700) has been determined by an actuarial review completed as of December 31, 2011. This liability is fully funded by a reserve set aside for this purpose and reported as part of the employee health, safety and related costs reserve as reported in the Accumulated Surplus note. The actuarial report for the WSIB liability was based on the following assumptions: Interest discount rate WSIB administration and physician fees Expected level of employee cost increases

4.25% 30% 4.7%

The continuity of WSIB liability is as follows:

Accrued benefit obligation at January 1 Current year benefit cost Interest Amortization of actuarial loss Less: benefit payments

2014 $

2013 $

1,736,700 416,824 81,829 19,941 (358,497)

1,578,187 403,642 76,029 19,941 (341,099)

1,896,797

1,736,700

EXPENSES BY OBJECT The expenses for the year reported on the Consolidated Statement of Operations and Accumulated Surplus by object are as follows:

Salaries and benefits Interest charges Materials Contracted services Rents and financial External transfers Amortization Loss (gain) on disposal of tangible capital assets

2014 ANNUAL REPORT

Budget 2014 $ (Unaudited)

Actual 2014 $

Actual 2013 $

34,496,832 715,334 15,978,509 10,893,808 95,201 19,420,759 8,200,000 -

34,560,298 697,268 16,709,730 10,383,555 75,243 18,906,779 7,858,104 449,229

32,755,162 753,038 14,475,081 9,603,712 105,702 18,973,326 7,966,412 542,291

89,800,443

89,640,206

85,174,724

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

TANGIBLE CAPITAL ASSETS The net book value of the County's tangible capital assets are: 2014 $

2013 $

General Land Land improvements Buildings Equipment and computers Vehicles

13,739,910 312,320 27,464,776 6,026,249 5,313,039

13,679,639 312,623 29,113,974 6,527,087 5,418,404

Infrastructure Roads and bridges

92,429,005

90,760,823

145,285,299

145,812,550

5,503,736

3,636,823

150,789,035

149,449,373

Assets under construction

For additional information, see the Consolidated Schedule of Tangible Capital Assets. During the year there were no write-downs of assets (2013 - $Nil) and no interest capitalized (2013 - $Nil). Tangible capital assets allocated by segment are as follows:

General government Protection services Transportation services Environmental services Health services Social and family services Social housing Economic development, tourism and forest

2014 ANNUAL REPORT

2014 $

2013 $

14,050,440 125,776 98,436,711 21,483,008 1,013,454 748,601 11,158,261 3,772,784

14,474,696 135,579 96,949,073 21,880,520 1,015,868 706,478 12,269,712 2,017,447

150,789,035

149,449,373

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

ACCUMULATED SURPLUS Accumulated surplus consists of the following: 2014 $

2013 $

(23,400,799) (1,896,797)

(22,338,111) (1,736,700)

(25,297,596)

(24,074,811)

150,789,035 (13,992,307)

149,449,373 (15,257,396)

136,796,728

134,191,977

111,499,132

110,117,166

Reserves Working funds Corporate services Transportation services Waste services Social services Social housing Golden Plough Lodge Ambulance services Technological development Emergency planning Employee health, safety and related costs Facilities Economic development, tourism and forest

821,277 10,443,013 4,076,657 3,622,949 666,000 7,492,389 2,732,533 1,210,765 552,457 250,050 3,466,688 784,065 299,111

821,278 10,419,555 4,496,594 1,823,331 711,000 6,434,309 2,137,754 1,105,021 381,457 230,050 3,184,303 548,065 284,894

Total Reserves

36,417,954

32,577,611

147,917,086

142,694,777

Surplus/(Deficit) Unfunded landfill closure and post-closure liability Unfunded employee future benefits liability

Invested In Capital Assets Tangible capital assets - net book value Long term debt

Surplus

10. PENSION AGREEMENTS The County makes contributions to the Ontario Municipal Employees Retirement System (â&#x20AC;&#x153;OMERSâ&#x20AC;?), which is a multi-employer plan, on behalf of all permanent, full-time 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. Contributions required on account of current service in 2014 were $2,274,262 (2013 - $2,071,657).

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

11. PROVINCIAL OFFENCES OFFICES As a result of the provincial-municipal restructuring under Bill 108, streamlining of administration of Provincial Offences Act (“POA”) 1997, the County has assumed responsibility and administration of the POA office and courts. Revenues from the POA office consists of fines levied under Part I and III (including delay penalties) for POA charges filed at 860 William Street in Cobourg. Offenders may pay their fines at any court office in Ontario, at which time, their receipt is recorded in the Integrated Courts Operations Network system (“ICON”) operated by the Province of Ontario. The County of Northumberland recognizes fine revenue when the receipt of funds is recorded by ICON and matched to the offence notice, regardless of the location where payment is made. Revenue and expenditures related to these operations have been reported as follows:

Gross revenues Operating costs and allocated charges Net County revenue used to reduce tax levy

2014 $

2013 $

1,461,891 (972,704)

1,647,934 (962,297)

489,187

685,637

12. TRUST FUNDS Trust funds administered by the County amounting to $175,113 (2013 - $154,020) have not been included in the Consolidated Statement of Financial Position nor have their operations been included in the Consolidated Statement of Operations and Accumulated Surplus. As such balances are held in trust by the County for the benefit of others, they are not presented as part of the County's financial position or operations. 13. BUDGET FIGURES The budget, approved by the County, for 2014 is reflected on the Consolidated Statement of Operations and Accumulated Surplus and the Consolidated Statement of Change in Net Financial Liabilities. The budgets established for capital investment in tangible capital assets are on a project-oriented basis, the costs of which may be carried out over one or more years and, therefore, may not be comparable with current year’s actual amounts. Budget figures have been reclassified for the purposes of these financial statements to comply with PSA reporting requirements. Budget figures are not subject to audit. 14. CREDIT FACILITY AGREEMENT The County has a revolving credit facility agreement with its main financial institution. The amount available at any time is limited to $10,000,000 via an operating loan. Any balance borrowed will accrue interest at the bank’s prime lending rate less 0.5% per annum. Council authorized the temporary borrowing limit by by-law 01-14. At December 31, 2014 there was no balance outstanding (2013 - $Nil).

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

15. CONTINGENT LIABILITIES The County, in the course of its operations, has been named in several lawsuits the outcomes of which are indeterminable at this time. No amounts in connection with these items have been reflected in these financial statements. 16. COMMITMENT The County assumed the assets and liabilities of the waste management systems of the lower tier municipalities on January 1, 1991 according to by-law 24-90. This by-law was passed pursuant to subsection 209(a) of the Municipal Act of the Province of Ontario which required the County to pay or to receive from the lower tier municipalitiesâ&#x20AC;&#x2122; compensation based upon the discounted future cash flows of the landfill site. The County is involved with ongoing negotiations with respect to the settlements for further sites. 17. SEGMENTED INFORMATION The County of Northumberland is a municipal government organization that provides a range of services to its residents. County services are reported by function and their activities are separately disclosed in the segmented information. For each reported segment, revenues and expenses represent both amounts that are directly attributable to the segment and amounts that are allocated to the segment. Certain allocation methodologies are employed in the preparation of segmented financial information. Taxation levied to lower tiers is allocated based on each segment's net requirements. Internal transfers include the following: 1) Actual wages and benefits expenses for governance, corporate management and information technologies that are allocated based on the segment's proportionate share as determined by head count, revenue and number of computers; and 2) Actual occupancy costs that are allocated based on the segment's proportionate share of the square footage of the County buildings. The accounting policies used in these segments are consistent with those followed in the preparation of the consolidated financial statements as disclosed in Note 1. For additional information see the Consolidated Schedule of Segment Disclosure. General Government General government consists of the activities of Council and general financial and administrative management of the County and its programs and services including contributions to the Municipal Property Assessment Corporation. Protection Services Protection services includes emergency measures and Provincial Offences Act charges. Transportation Services The activities of the transportation function includes maintenance and winter control of the County's roads and bridges.

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

17. SEGMENTED INFORMATION, continued Environmental Services The environmental function is responsible for providing waste collection, waste disposal and recycling services to ratepayers.

Health Services The health services function consists of land ambulance services, plumbing inspections and contributions to the local health unit. Social and Family Services The social and family services consist of general assistance to inhabitants, homes for the aged and child care services for the County. Social Housing The social housing services provides affordable housing to qualified inhabitants of the County. Economic Development, Tourism and Forest The function includes economic development and tourism operations and maintenance of the County forest. 18. COMPARATIVE FIGURES Certain comparative figures were restated, where required, to conform with the current year presentation. 19. SOCIAL HOUSING The Northumberland County Housing Corporation was incorporated under Part III of The Ontario Business Corporations Act in response to the Province’s overall initiative to devolve Social Housing to local municipalities. The corporation currently provides subsidized housing to its tenants and their families. As the Service Manager, the County is now the sole shareholder of the Corporation. On January 1, 2001 the Ontario Housing Corporation transferred 14 properties and certain head office assets to the Corporation. The properties transferred carried the following restriction: “The properties cannot be transferred or mortgaged or otherwise encumbered, developed or redeveloped …. or disposed of by any person without prior consent of the Minister of Municipal Affairs and Housing.”

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

CONSOLIDATED SCHEDULE OF TANGIBLE CAPITAL ASSETS For the Year Ended December 31, 2014

General

Infrastructure Equipment and Computers $

Land Improvements Buildings $ $

Land $

Vehicles $

Roads and Bridges $

Assets Under Construction $

Totals $

COST Balance, beginning of year

13,679,639

522,689

53,390,535

13,456,049

10,447,173

162,634,561

3,636,823

257,767,469

60,271

41,026

27,940

181,090

955,022

6,408,320

2,010,584

9,684,253

Less: disposals during the year

36,774

278,647

3,078,974

3,394,395

Internal transfers

73,043

70,628

(143,671)

13,739,910

563,715

53,491,518

13,600,365

11,123,548

166,034,535

5,503,736

264,057,327

Balance, beginning of year

210,066

24,276,561

6,928,962

5,028,769

71,873,738

108,318,096

Add: additions during the year

41,329

1,750,181

681,928

1,009,792

4,374,874

7,858,104

Less: disposals during the year

36,774

228,052

2,643,082

2,907,908

Balance, end of year

251,395

26,026,742

7,574,116

5,810,509

73,605,530

113,268,292

13,739,910

312,320

27,464,776

6,026,249

5,313,039

92,429,005

5,503,736

150,789,035

Add: additions during the year

Balance, end of year ACCUMULATED AMORTIZATION

NET BOOK VALUE OF TANGIBLE CAPITAL ASSETS

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2014

CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE For the Year Ended December 31, 2014

General Government $

Protection Services $

Transportation Environmental Services Services $ $

Health Services $

Social and Family Services $

Social Housing $

Economic Development, Tourism and Forest Consolidated $ $

Revenues Tax levy from lower tiers User charges Government transfers - operating Government transfers - capital Other municipalities Investment income Provincial Offences Act charges Rents Federal gas tax earned Waste Diversion Ontario grants Other Donations

2,390,180 258,051 637,088 785,435 -

438,036 278,892 1,461,891 -

14,976,854 185,775 489,918 1,109,423 2,430,349 -

4,752,978 6,031,083 4,969 274,550 5,143 923,821 -

7,647,931 39,738 5,358,643 -

8,580,578 3,098,030 20,604,109 3,011

6,091,277 35,609 1,458,756 1,480,794 -

2,042,769 95,318 363,820 347,780 135,238 44,678

46,920,603 10,022,496 27,790,297 837,698 1,383,973 637,088 1,461,891 2,271,372 2,430,349 923,821 135,238 47,689

Total revenues

4,070,754

2,178,819

19,192,319

11,992,544

13,046,312

32,285,728

9,066,436

3,029,603

94,862,515

4,068,560 464,943 2,417,564 1,906,720 5,474 64,852 458,559

615,479 14,296 514,644 102,998 18,110 9,803

3,464,253 37,607 4,147,066 2,658,749 4,983,489

3,766,830 141,369 3,131,639 3,762,009 6,250 720,485

8,416,658 1,085,418 59,167 32,919 1,888,063 453,052

12,738,142 35,977 2,282,893 476,450 1,410 13,398,753 71,838

547,703 3,076 2,295,287 512,481 11,080 3,555,111 1,152,478

942,673 835,219 904,981 8,400

34,560,298 697,268 16,709,730 10,383,555 75,243 18,906,779 7,858,104

(6,354,919)

683,422

455,154 1,066,103

3,597 651,019

(9,522) 834,000

1,953,843

959,333

207,199

449,229 -

Total expenses

3,031,753

1,958,752

16,812,421

12,183,198

12,759,755

30,959,306

9,036,549

2,898,472

89,640,206

Net surplus/(deficit)

1,039,001

220,067

2,379,898

(190,654)

286,557

1,326,422

29,887

131,131

5,222,309

Expenses Salaries and benefits Interest charges Materials Contracted services Rents and financial External transfers Amortization Loss (gain) on disposal of tangible capital assets Internal transfers

2014 ANNUAL REPORT

INDEPENDENT AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the County of Northumberland Report on the Financial Statements We have audited the accompanying financial statements of the Trust Funds of the Corporation of the County of Northumberland, which comprise the statement of financial position as at December 31, 2014, the statement of continuity for the year then ended, and a summary of significant accounting policies and other explanatory information.

Managementâ&#x20AC;&#x2122;s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian Public Sector Accounting Standards, and for such internal controls as management determines are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entityâ&#x20AC;&#x2122;s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entityâ&#x20AC;&#x2122;s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for Qualified Opinion In common with many municipal trust funds, the completeness of the revenue is derived from residents is not susceptible to satisfactory audit verification. Accordingly, our verification of this revenues was limited to the amounts recorded in the records of the Trust Funds and we were not able to determine whether any adjustments might be necessary to resident receipts, excess of receipts over expenses, assets and fund balances at the end of the year. Qualified Opinion Except as noted in the above paragraph, in our opinion, these financial statements present fairly, in all material respects, the financial position of the Trust Funds of the Corporation of the County of Northumberland as at December 31, 2014 and the continuity of the Trust Funds for the year then ended in accordance with Canadian Public Sector Accounting Standards.

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND TRUST FUNDS STATEMENT OF FINANCIAL POSITION At December 31, 2014

FINANCIAL ASSETS Cash Investment (note 2)

Blacklock Bequest $

Safekeeping Pensioners $

2014 Total $

2013 Total $

617 109,476

65,020 -

65,637 109,476

62,693 198,681

110,093

65,020

175,113

261,374

107,354

110,093

65,020 -

65,020 110,093

50,981 103,039

110,093

65,020

175,113

154,020

110,093

65,020

175,113

261,374

LIABILITIES AND FUND BALANCES CURRENT LIABILITIES Due to County FUND BALANCES Due to Residents Bequests

2014 ANNUAL REPORT

CORPORATION OF THE COUNTY OF NORTHUMBERLAND TRUST FUNDS STATEMENT OF CONTINUITY For the Year Ended December 31, 2014

BALANCES - beginning of year RECEIPTS Residents' contributions Interest earned

EXPENSES Residents' personal costs Maintenance - County home

BALANCES - end of year

2014 ANNUAL REPORT

Blacklock Bequest $

Safekeeping Pensioners $

2014 Total $

2013 Total $

103,039

50,981

154,020

154,225

7,054

179,308 -

179,308 7,054

178,769 4,264

7,054

179,308

186,362

183,033

165,175 94

183,216 22

165,269

183,238

110,093

65,020

175,113

154,020

CORPORATION OFTHE THECOUNTY COUNTY NORTHUMBERLAND CORPORATION OF OFOF NORTHUMBERLAND TRUST FUNDS TRUST FUNDS NOTES TOTHE THEFINANCIAL FINANCIAL STATEMENTS NOTES TO STATEMENTS For the Year Ended December 2014 For the Year Ended December 31,31, 2014

SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with the standards in the Chartered Professional Accountants Canada Public Sector Accounting (PSA) Handbook. (a) Basis of Accounting Revenue and expenses are reported on the accrual basis of accounting which recognizes revenues as they become available and measurable; expenses 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. (b) Financial Instruments The Trust Funds financial instruments consist of cash and investment. It is managementâ&#x20AC;&#x2122;s opinion that the fair value of the financial instruments are not materially different from their carrying value unless otherwise noted. The Trust Funds do not have any significant concentration of credit, currency or interest rate risk. (c) Use of Estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period and are based on the County's best information and judgment. Actual results could differ from these estimates.

INVESTMENT The investment of $109,476 is recorded at cost which approximates market value. The funds have been invested in a Renaissance high interest savings account SR F (5001) with CIBC Wood Gundy.

2014 ANNUAL REPORT

2014 Statistics Northumberland County

2014 ANNUAL REPORT

County of Northumberland FiveYear Financial Review Municipality Statistics Fiscal Year

2014

2013

2012

2011

2010

Population

86,419

85,390

82,126

83,860

Area in acres

1,905 sq.km 1,905 sq. km 1,905 sq. km 1,905 sq. km 1,905 sq. km

Households

38,614

38,148

37,684

37,226

36,774

Employees

2014

2013

2012

2011

2010

Full time

328

302

290

285

283

Part time

181

197

186

185

186

Total

509

499

476

470

469

Tax Rate Information Assessment Valuation Year

2014

Residential, farm, multiresidential, forest

8,613,564,544 8,359,763,485 8,2135,736,340 7,669,243,455 7,111,896,967

Commercial, industrial and 926,923,020 other Total Taxable Assessment

2013

894,190,354

2012

804,725,775

9,540,487,564 9,253,953,839 9,018,299,409

Commercial, industrial and 9.72% business as a percentage of taxable income

2014 ANNUAL REPORT

9.67%

8.92%

2011

774,658,875

2010

789,623,671

8,443,902,330 7,901,520,638 9.17%

9.99%

Residential

2014

2013

2012

2011

2010

Education

0.0019500

0.0021200

0.0022100

0.00231000

0.00241000

Upper Tier – Northumberland County

0.00471777 0.00468091

0.00458759

0.00471047 0.00486655

Lower Tier – Municipality of Brighton

0.0055718

0.00520412

0.00489335

0.00498453

0.00500104

Lower Tier – Cramahe Township

0.0075095

0.00745243

0.00728713 0.00746469

0.00772598

Lower Tier – Hamilton Township

0.00543986

0.00540461

0.00529553

0.00551615

0.00578831

0.0084576 0.00842460

0.00831770

0.00853692

0.00883238

0.00423300 0.00418000

0.00435110

Lower Tier – Town of Cobourg Lower Tier – Municipality of Port Hope (Ward 2)

0.00492768 0.00440494

Lower Tier – Former Port Hope (Ward 1)

0.0041607 0.00905444 0.00886400

Lower Tier – Municipality of Trent Hills

0.0075605

0.009382

0.00980873

0.00751552

0.00735050

0.00752103

0.00773140

0.00498977 0.00450942

0.00437184

0.00453036

0.00474839

2012

2011

2010

Education

0.0143000 0.01490000 0.01490000

0.01667750

0.01761587

Upper Tier – Northumberland County

0.0071484

0.00709252

0.00695111

0.00713730

0.00737379

Lower Tier – Municipality of Brighton

0.0084424

0.00788528

0.00741440

0.00755256

0.00757757

Lower Tier – Cramahe Township

0.0113784 0.01129192

0.01104146

0.01131050

0.01170640

Lower Tier – Hamilton Township

0.0082425 0.00818907

0.00802379

0.00835808

0.00877045

0.012815 0.01276500

0.01260300

0.01293514

0.01338282

Lower Tier – Township of Alnwick/Haldimand Commercial

2014

Lower Tier – Town of Cobourg

2013

Lower Tier – Municipality of Port Hope (Ward 2)

0.0074664

0.00667437

0.00641300

0.00633354

0.00659278

Lower Tier – Former Port Hope (Ward 1)

0.00630428 0.01371929

0.01343000

0.01423610

0.01486218

0.01138752

0.01113748

0.01139586

0.01171462

0.00683267

0.0066242

0.0068644

0.00719476

Lower Tier – Municipality of Trent Hills Lower Tier – Township of Alnwick/Haldimand 2014 ANNUAL REPORT

0.0114557 0.0075605

Industrial

2014

2013

2012

2011

2010

Education

0.01530000 0.01590000 0.01590000 0.01930000 0.02450000

Upper Tier – Northumberland County

0.01240773 0.01231080 0.01206536 0.01238852 0.01279902

Lower Tier – Municipality of Brighton

0.01465383 0.01368684

Lower Tier – Cramahe Township

0.01974998 0.01959989 0.01916515 0.01963213 0.02031933

Lower Tier – Hamilton Township

0.0143068 0.01421412 0.01392724 0.01450749 0.01522326

Lower Tier – Town of Cobourg

0.0222436 0.02215670 0.02187560 0.02245210 0.02322916

Lower Tier – Municipality of Port Hope (Ward 2)

0.0129598 0.01158499 0.01113100 0.01099340 0.01144338

Lower Tier – Former Port Hope (Ward 1)

0.0109426 0.02381318 0.02331200 0.02467466 0.02579695

Lower Tier – Municipality of Trent Hills

0.0198841 0.01976583 0.01933181 0.01978030 0.02033358

Lower Tier – Township of Alnwick/Haldimand

2014 ANNUAL REPORT

0.0128651 0.01310932

0.01315273

0.01312309 0.01185977 0.01149793 0.01191484 0.01248827

Tax Levies Property Tax Levies County Portion

2014

2013

2012

2011

2010

46,920,603

45,683,066

43,288,211

42,305,063

40,300,010

2014

2013

2012

2011

2010

Consolidated Revenues Property taxation

46,920,603

45,683,066

43,288,211

42,305,063

40,300,010

User charges

10,022,496

9,977,597

12,080,768

11,639,133

10,736,397

982,396

993,201

993,634

1,060,403

1,726,117

27,645,599

26,492,965

25,847,840

25,817,839

26,178,270

Other Municipalities

1,383,973

1,525,405

226,107

234,177

Investment income

637,088

418,873

325,502

240,975

65,468

47,689

8,294

7,307

12,597

38,822

Rents

2,271,372

2,265,034

2,035,792

2,134,799

2,080,250

Federal gas tax

2,430,349

2,468,018

3,030,341

2,240,723

2,150,000

Waste diversion Ontario grants

923,821

887,094

993,806

1,302,052

1,027,097

Provincial Offences Act charges

1,461,891

1,647,934

1,667,778

1,447,867

1,448,181

94,727,277

92,367,481

90,497,086

88,435,628

85,750,612

Government of Canada Province of Ontario

Donations

Total Revenues

2014 ANNUAL REPORT

Consolidated Expenses by Function

2014

2013

2012

2011

2010

General Government

3,266,810

2,685,107

2,906,429

2,408,956

2,868,198

Protection Services

1,958,752

1,896,952

1,943,310

1,676,112

2,011,324

Transportation Services

16,812,421

15,317,996

14,299,195

13,977,471

14,150,527

Environmental Services

12,183,198

11,504,557

11,707,409

10,089,480

20,586,736

Health Services

12,759,755

12,601,979

11,554,651

10,890,290

10,474,426

Social and Family Services

30,959,306

29,722,474

29,700,369

29,171,137

30,180,287

Social Housing

9,036,549

9,162,362

9,164,868

9,891,393

10,175,482

Economic Development, Tourism & Forest

2,898,472

2,283,297

1,752,295

2,156,643

1,584,716

89,640,206

85,174,724

83,028,526

80,261,482

92,031,696

Annual Surplus/Deficit

5,222,309

7,192,757

7,468,560

8,174,146

(6,281,084)

Net Financial Liabilities

(3,117,301)

Total Expenses by Function

Expenses by Object: Consolidated Statement of Operations Salaries and Benefits

(6,970,469) (14,514,437) (19,419,024) (29,237,687) 2014

2013

2012

2011

2010

34,560,298

32,755,162

30,636,130

29,364,599

27,981,637

697,268

753,038

811,234

867,245

766,676

Materials

16,709,730

14,182,711

13,421,056

13,133,395

12,846,912

Contracted Services

10,383,555

9,896,082

10,210,942

9,137,698

19,692,752

Rents and Financial

75,243

105,702

130,473

157,331

504,756

18,906,779

18,973,326

20,024,543

20,209,580

22,545,315

7,858,104

7,966,412

7,628,043

7,392,144

7,513,460

449,229

542,291

166,105

(510)

180,188

Interest Charges

External Transfers Amortization Loss/(Gain) on Disposal of Capital Assets Total Consolidated Expenses by Object

2014 ANNUAL REPORT

89,640,206 85,174,724 83,028,526 80,261,482 92,031,696

Expenses by Object: Consolidated Statement of Operations Salaries and Benefits

2014

2013

2012

2011

2010

34,560,298

32,755,162

30,636,130

29,364,599

27,981,637

697,268

753,038

811,234

867,245

766,676

Materials

16,709,730

14,182,711

13,421,056

13,133,395

12,846,912

Contracted Services

10,383,555

9,896,082

10,210,942

9,137,698

19,692,752

Rents and Financial

75,243

105,702

130,473

157,331

504,756

18,906,779

18,973,326

20,024,543

20,209,580

22,545,315

7,858,104

7,966,412

7,628,043

7,392,144

7,513,460

449,229

542,291

166,105

(510)

180,188

Interest Charges

External Transfers Amortization Loss/(Gain) on Disposal of Capital Assets Total Consolidated Expenses by Object

89,640,206 85,174,724 83,028,526 80,261,482 92,031,696

Municipal Debt Information: Long-Term Liabilities General Municipal Activities Per Capita

13,992,307

15,257,396

16,511,952

17,729,578

18,911,597

$162

$179

$201

$216

$226

697,268

753,038

811,234

867,245

766,676

8.07

9.17

9.88

10.56

9.14

12,637,230

12,711,002

12,403,909

11,555,653

11,651,604

Charges for Long-Term Liabilities General Municipal Activities Per Capita *Debt Repayment Limit (as determined by the Province)

2014 ANNUAL REPORT

Tangible Capital Assets

Net Book Value

150,789,035 149,449,373 149,804,472 147,255,874 148,305,940

Amortization

7,858,104

Accumulated Surplus

2014

County Operations

Unfunded landfill closure & postclosure liability

(23,400,799)

Unfunded employee future benefits liability

(1,896,797)

7,966,412 2013 0

7,628,043 2012 0

7,392,144

7,513,460

2011

2010

231,232

(2,238,111) (21,477,867) (19,934,985) (19,809,064) (1,736,700)

(1,578,187) (14,198,850)

(1,300,450)

Total (25,297,596) (24,074,811) (23,056,054) (21,354,835) (20,878,282) Tangible Capital Assets â&#x20AC;&#x201C; NBV

150,789,035 149,449,373 149,804,472 147,255,874 148,305,940

Long-Term Debt

(13,992,307) (15,257,396) (16,511,952) (17,729,578) (18,911,597)

Unfunded Capital

0 Total

Surplus

(500,202)

136,796,728 134,191,977 133,292,520 129,526,296 128,894,141 111,499,132 110,117,166 110,236,466 108,171,461 108,015,859

Reserves

36,417,954

Total Accumulated Surplus

2014 ANNUAL REPORT

32,577,611

25,265,554

19,861,999

11,663,455

147,917,086 142,694,777 135,502,020 128,033,460 119,649,314

Contact Information Northumberland County 555 Courthouse Rd. Cobourg, ON K9A 5J6 Website: www.northumberlandcounty.ca Public Inquiry: 905-372-3329

Northumberland County Members of Council Marc Coombs Warden coombs@northumberlandcounty.ca __________________________________________________________ Gil Brocanier Councillor brocanierg@northumberlandcounty.ca __________________________________________________________ John Logel Councillor logelj@northumberlandcounty.ca __________________________________________________________ Mark Lovshin Councillor lovshinm@northumberlandcounty.ca __________________________________________________________ Hector Macmillan Councillor macmillanh@northumberlandcounty.ca __________________________________________________________ Bob Sanderson Councillor sandersonb@northumberlandcounty.ca __________________________________________________________ Mark Walas

Councillor

2014 ANNUAL REPORT

walasm@northumberlandcounty.ca