2015 Annual Report The Corporation of the County of Northumberland, Ontario for fiscal year ending December 31, 2015
Accessibility 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.
2015 Annual Report The 2015 Annual Financial Report has been prepared in an electronic format and is available on the County’s website at www.northumberlandcounty.ca/2015annualreport The Corporation of the County of Northumberland Financial Report 2015 For the ďŹ scal year ending December 31, 2015 Cobourg, Ontario, Canada Not for reproduction without permission.
Contents INTRODUCTORY SECTION 2014-2018 County Council ....................................... 1 About Northumberland County ............................... 2 Message from the Warden ....................................... 4 Vision, Mission & Values .......................................... 5 Journey Through County Services ............................ 6 County Organizational Structure .............................. 8 2015 Key Accomplishments...................................... 13 Message from the Chief Administrative Officer ....... 17 Message from the Director of Finance/Treasurer .... 19 Financial Management Processes ............................ 21 FINANCIAL STATEMENT SECTION 2015 Financial Year in Review .................................. 22 2015 Financial Results Overview .............................. 23 2015 Financial Statement Overview ......................... 24 Consolidated Statement Of Financial Position ......... 25 Consolidated Statement Of Operations.................... 27 Consolidated Statement Of Change In Net Financial Assets ................................................................... 32 Consolidated Statement Of Cash Flows.................... 32 Tangible Capital Assets Overview ............................. 32 Reserves Overview ................................................... 33 2015 Financial Statements ....................................... 34 Management Report ................................................ 35 Independent Auditor’s Report.................................. 36 Consolidated Statement of Financial Position .......... 37 Consolidated Statement of Operations and Accumulated Surplus ............................................ 38 Consolidated Statement of Change in Net Financial Liabilities............................................................... 39 Consolidated Statement of Cash Flows .................... 40 Notes to the Consolidated Financial Statements ..... 41
Trust Funds Financial Statements Independent Auditor’s Report.................................. 55 Statement of Financial Position ................................ 56 STATISTICAL SECTION Five-Year Financial Review ........................................ 60 Contact Information ................................................. 67
2014-2018 County Council
Gil Brocanier 2016 Warden of the County, Mayor of the Town of Cobourg
Marc Coombs Mayor of the Township of Cramahe
John Logel Mayor of the Township of Alnwick/Halimand
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 1
About Northumberland County Northumberland County is a thriving, WHAT WE OFFER south-eastern Ontario community. It is easily • a range of living experiences from accessible from Hwy 401, exits 45 (Port Hope) historic towns to scenic rural areas through to 509 (Brighton). • outdoor adventures — 37 trails, access to the Trent-Severn Waterway and HOW TO FIND US Lake Ontario, 15 conservation areas, • Access to both Toronto and Kingston 2 provincial parks, 2 forests and within a 1 to 1.5 hours drive 1 nature reserve • Boaters can choose from many access points along Lake Ontario, Rice Lake and the Trent-Severn Waterways
• a place to relax — the rolling hills featuring historic spas & B&B’s
• Within a day’s drive from most large northeastern US cities
• vibrant arts and heritage — exceptional architecture, unique performance venues, music and galleries, historic main streets
POPULATION
• farm fresh destinations — 50 farm-gate destinations and the Apple Route
86,188
EMPLOYMENT • Total Experienced Labour Force 41,365 (2011)
2015 TAX RATES (County only)** • Industrial: 0.01240773 • Commercial: 0.00714836 • Residential: 0.00471777 • Multi-Residential: 0.01045457 (**Municipal and education in addition)
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 towns
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The County of Northumberland is the upper tier level of municipal government that weaves together seven diverse, yet complementary municipalities: Township of Alnwick/Halimand
Township of Cramahe
www.alnwickhaldimand.ca
www.visitcramahe.ca
Municipality of Brighton
Township of Hamilton
www.brighton.ca
www.hamiltontownship.ca
Town of Cobourg
Municipality of Port Hope
www.cobourg.ca
www.porthope.ca
We also value our long-standing relationship with Alderville First Nation.
Municipality of Trent Hills www.trenthills.ca
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Message from the Warden On behalf of Northumberland County Council it is my pleasure to present the 2015 Annual Report. As in past years, this financial report highlights the focus that Council continues to place on creating the conditions for thriving, inclusive, and sustainable communities. 2016 marks my second term as Warden, and I am proud to reflect on the progress made by Council and staff since my first term in 2012. We continue to strive for the right balance of programs and services that meet the needs of residents, while taking a measured approach to any increase in taxation based on a disciplined, long-term view of financial planning. By adhering to this approach, we have been able to assure the ongoing livability of our communities, fulfilling current priorities while yet meeting markers for our long-term prosperity. Over the last year, Council provided direction on economic growth opportunities such as entrepreneurship development, food production innovation, and investment attraction programs; on community support programs such as affordable housing and expansion of food bank assistance; and on key service delivery including expansion of recycling capabilities and achievement of road maintenance targets. We also moved the mark on both budget reserves and concrete actions for future infrastructure projects that will have long-term impacts on the quality of life in Northumberland. Initial plans and surveys are underway for the rebuild of our Golden Plough Lodge long-term care facility, and we have completed several of the orders from the provincial government related to the Environmental Assessment for the Trent River Crossing. Working with other levels of government, community partners and stakeholders, we are driving successful outcomes related to our four-year Strategic Plan. In line with County corporate values, providing this annual report-out to our communities is another opportunity to build accountability and transparency into our practices. I am pleased to note that this report confirms Northumberland County’s good financial health, and that plans are in place to continue fostering an environment where people and partnerships come together to create possibilities for a thriving Northumberland. Gil Brocanier Warden Northumberland County
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Vision, Mission & Values
VISION To bring together people, partnerships and possibilities for a strong and vibrant Northumberland County.
MISSION To be a best practices leader of County government, and a collaborative partner with our member municipalities and community partners.
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:
COLLABORATION & COMMUNICATION MUTUAL TRUST & RESPECT INNOVATION & EXCELLENCE HONESTY & INTEGRITY CARE & SUPPORT ACCOUNTABILITY
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Journey Through Northumberland County Services HERE’S WHAT WE DO: Journey through Northumberland County Services: 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.
County Roads
Infrastructure Services Plumbing Inspection & Facilities
County Forest
Food 4 All Warehouse
Land Use Planning Waste Management
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Children’s Services & Housing Services
County Clerk / Archives & Records Management
Tourism Attraction
Provincial Offenses
Human Resources & Financial Services
Support Services
Health & Safety / Emergency Planning Information Technology & Communications Ontario Agri-Food Venture Centre & Agriculture Services
People Services Golden Plough Lodge Long Term Care Home
Business Advisory Centre
Northumberland Paramedics
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County Organizational Structure
Jennifer Moore, Chief Administrative OďŹƒcer (CAO)
Lisa Ainsworth, Director, Corporate Services
Dan Borowec, Director, Economic Development & Tourism
Kate Campbell, Director, Communications
Clare Dawson, Administrator, Golden Plough Lodge
Glenn Dees, Director, Finance/ Treasurer
William Detlor, Chief, Northumberland Paramedics
Lisa Horne, Director, Community & Social Services
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Mobushar Pannu, Director, Transportation, Waste & Facilities
County Services COMMUNICATIONS • Ensures a coordinated, best-practice approach to sharing information that is timely, accurate, clear, responsible and responsive • Fosters alignment between corporate messaging, imaging and activities, and the organization’s mission, vision and values • Encourages and enhances two-way communication with residents, stakeholders and employees
COMMUNITY & SOCIAL SERVICES • Develops, delivers, and manages a range of services that help people in the community • Works with community partners to ensure vulnerable residents have the tools and supports to move forward in their lives • Operates Community Service Hubs throughout the county to meet multiple client needs at a single location, making social services more accessible • Services include: • Income Services • Children’s Services • Employment & Support Services • Housing and Homelessness Services • Community Outreach • Food 4 All Warehouse
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CORPORATE SERVICES • Provides leadership, direction and support in areas including: • Accessibility • County Clerk • County Forest • Health, Safety & Emergency Planning • Human Resources, Payroll & Benefits • Records Management & Archives
ECONOMIC DEVELOPMENT & TOURISM • Fosters economic innovation and prosperity by providing leadership and support for coordinated economic development activities in Northumberland County • Accountabilities include: • 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, entrepreneur development and business start ups, and agriculture • Programs and services include: • The Ontario Agri-Food Venture Centre (OAFVC) • Land use planning and inspection services • The Business Advisory Centre of Northumberland • Business Immigration Portal • Tourism services • Agriculture services • Prosper in Northumberland (PiN)
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FINANCE & TREASURY • Provides supports to internal and external partners to be financially strong and sustainable • Leads County financial services with efficiency, keeping in mind areas for continuous improvement • Budget development; operating and capital financial plans • Records and reports all financial transactions, collection and investments • Performs purchasing functions and implement financial policies and internal controls • Risk management
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 • Services include: • Accommodation • Hospitality • Health
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PARAMEDIC SERVICES • Provides land ambulance services throughout the County • Transports those in need of further medical care to appropriate medical facilities • Ensures that all Paramedics maintain current health care skills to ensure quality of care and continuous improvement • Delivers community programs to educate the public on the use of EMS and 911, as well as the Northumberland Paramedics
TRANSPORTATION, WASTE & FACILITIES • Maintains County roads, bridges, culverts and drainage systems • Implements all Capital building projects • 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 • Leads the oversight of all County-owned facilities including buildings, infrastructure and grounds
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2015 Key Accomplishments
Economic Innovation & Prosperity • Officially opened the Ontario Agri-Food Venture Centre (OAFVC) in Colborne, with remarks by Premier Kathleen Wynne. • Coordinated a consistent cross-departmental approach to size, placement, timing and content of County print advertisements to enhance reach to residents and stakeholders • Successfully implemented new digital campaigns which strategically target key tourism markets, resulting in a 30% increase in consumer engagement on Northumberland Tourism social media channels and website • The Business Advisory Centre Northumberland handled more than 1,200 inquiries and helped start 87 new businesses, which created 98 new jobs
Sustainable Infrastructure & Services • Collaborated with an interdisciplinary group to evaluate best practices in customer service response, and recommended corresponding technology to Council to address inquiries, complaints and feedback • Expanded Joint Purchasing Group initiatives to include sand domes, fire dispatch and radios, and roads rehabilitation projects • Delivered over $1.3 million in social housing construction, renovation and repairs • Enabled interpreters and witnesses to appear remotely in provincial offences court via video link through acquisition of new courtroom equipment • Generated significant efficiencies through the implementation of new technology and upgraded software in many departments including: the implementation of tablets for roads crews, upgrades to social housing maintenance and finance software, and the implementation of database management, eLearning, and inventory management programs for Northumberland Paramedics • Launched a public-facing, searchable map of social service resources available throughout the County using Geographic Information Systems (GIS) data
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Thriving & Inclusive Communities • Supported the single biggest year of food distribution through the Food 4 All Warehouse • Achieved above-average findings in the Resident Quality Inspection (RQI) conducted by the Ministry of Health at the Golden Plough Lodge • Created Northumberland Newcomers Network, a support group for immigrant entrepreneurs in the county with the aim to provide supportive strategies for all newcomers • Hosted three sessions for social services community partners, facilitating the sharing of service updates between organizations and launching a video capturing services offered by the County • Embedded a Social Worker in the Community & Social Services office to provide direct counselling support for clients requiring immediate interventions • Implemented a new Child Care General Operating Grant process for service providers and the provincial Wage Enhance strategy for child care workers • Provided “How Does Learning Happen” in-service at an Early Learning Professional Development Day for over 120 child care professionals across the County • Partnered with Habitat for Humanity Northumberland and the Community Training and Development Centre to obtain “Age Friendly Communities” project funding • Launched County involvement in ‘Local Government Week’, supporting increased awareness about the operation and importance of local government within communities • Coordinated and hosted of the first annual Northumberland County First Responders Recognition Event • Expanded Information Technology support to Cobourg & Port Hope Police Services • Launched shared service initiative between Northumberland Paramedics and local emergency and municipal partners for first aid/CPR (re)certification and remote access emergency response training
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Organizational Excellence • Developed an issues management protocol as well as templates and tools to ensure effective identification of, and response to, key issues • In preparation for the launch of the OAFVC, successfully trained and certified six new employees in food safety, two employees certified as Health and Safety Certified Representatives, and five employees certified with their Lift Truck Licenses • Upgraded project management skills of staff in multiple departments through intensive training • Reinforced commitment to effective succession planning by supporting the growth of staff in several departments into vacant, more senior positions • Implemented the sales order processing module in Microsoft Dynamics Great Plains for OAFVC invoicing and trained all OAFVC staff on its use • Completed the RFP process for a complete update to the organization’s telephone system • Completed Phase 1 of End of Operating Agreements with ten non-profit housing providers, including completion of building assessments and reviews of capital fund reserves • Redesigned paramedic emergency kits using an evidence-based ‘human factors’ design for improved work flow and enhanced emergency response
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Message from the Chief Administrative Officer (CAO) The Northumberland County Annual Report continues to be an important resource for sharing an overview of the services the County provides and the accomplishments being delivered, within the context of annual financial results. In 2015, members of County Council set forth their vision for this term in a four-year Strategic Plan. Regarded as a blueprint, this plan identifies priority areas for staff focus, including: • Stimulating economic prosperity and innovation • Investing in sustainable infrastructure and services • Fostering the livability, health and social well-being of our communities; and • Engaging in practices that propel us towards organizational excellence These are the strategic areas where we will be dedicating our energy and effort in order to deliver value to the residents of Northumberland. In terms of immediate impact in fulfilling these pillars over the last year: • Prosperity: We built up innovative entrepreneurship programs that have resulted in the creation of dozens of new businesses; implemented new digital campaigns successfully targeting key tourism markets; and launched a leading-edge Agri-Food Venture Centre that will bring new opportunities for food production to local farmers and businesses. • Sustainability: We diverted over 12,250 tonnes of waste from local landfills through recycling efforts; paved over 140 kilometers of roadway; and delivered over $1.3 million in social housing construction, renovation and repairs. • Community: Our Food 4 All warehouse had its single biggest year of food distribution to those in need; our Immigration Portal team supported area groups in settling five Syrian refugee families escaping war; and a Resident Quality Inspection by the Ministry of Health and Long-Term Care at the Golden Plough Lodge revealed findings that wellexceeded provincial averages; and • Excellence: We trained dozens of employees in health and safety as well as project management best practices; and reinforced our commitment to effective succession planning by supporting the growth of several staff into vacant leadership positions and support roles. The Strategic Plan also gives consideration to emerging trends and long-range requirements that we need to address now to ensure a sustainable quality of life into the future. 17
Over the long-term, the movement of people into, out of, and through Northumberland will continue to be an issue of significant importance from the perspectives of both economic development and community welfare. Our Transportation Master Plan, currently under development, considers multi-modal transportation networks and infrastructure that will drive greater mobility solutions for residents and visitors. It focuses on the need for the rehabilitation, reconstruction, and expansion of roadways and bridges, but also considers broader aspects of people-movement. This includes a network of cycling lanes across the county that tie into provincial and national trails, exploring developments with GO Transit, and leveraging opportunities associated with the eastern expansion of Highway 407. Certainly, projects including the rebuild of the Golden Plough Lodge, the construction of the Trent River Crossing, and the implementation of our Waste Management Master Plan continue to be some of the most prominent investments outlined in our long-term plan. We continue to position the County to manage these expenditures by making annual contributions to our reserves. Nevertheless, leveraging appropriate debt and exploring supplementary funding from other levels of government will also be needed in order to successfully deliver these mandates. Council continues to provide significant leadership in investing in the long-term welfare of our communities, to ensure lasting prosperity. County staff will persist in evolving our performance measurement and reporting processes to ensure we are effectively responding to the direction of Council and the expectations of residents. By continuing this trend of effective planning and quality implementation, we will progress toward our mission of being that best practice leader in county government.
Jennifer Moore, CPA, CMA CAO Northumberland County
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Message from the Director of Finance/Treasurer I am pleased to present the annual financial results for Northumberland County for the year ending December 31, 2015. These results reflect the County’s strategy for sustaining and growing our communities based on progressive financial policies and planning, prudent fiscal management, and strong governance. Northumberland County offers a wide range of programs and services for over 85,000 residents. Prior to the 1990’s, our main responsibilities related to the management of our long-term care facility, several lower-volume roads, and some social services. Since then, the scope of our work has grown to include services such as waste-collection and landfill management, higher volume roads and bridges, emergency planning, social housing and expanded social assistance programs, urban planning and development, and paramedic first response. At Northumberland County, our goal is to provide services and supports that create strong and thriving communities for current residents, as well as the people and businesses that will live and work here well into the future. In keeping with our mission to be a ‘best practices leader in county government’, the County put a financial planning model in place in 2010 that looks outward over ten years at the management of our many accountabilities. This 10-year budget framework lays out a balance of proposed programs and modest rate increases that ensures we can continue to meet the needs of an aging demographic, while maintaining Northumberland’s fiscal strength. In recent years, the County has demonstrated strong operating performance. We have kept increases to the annual base levy stable at 2.5 percent after a period of significant volatility. Going forward, we will be pushing for even greater efficiencies as we target a 2 percent base levy while maintaining existing service levels. With a finance strategy that seeks to ensure value for the funds invested by our communities, we maintained the trend in 2015 of taking on no new debt, and our outstanding debt principal continues to decline, now standing at $12.7 million – down 33 percent from 2010. We also continued to focus on the health of County reserves. These funds – now at $41.5 million – will be essential for minimizing levy fluctuations in future years as we tackle key infrastructure projects. The County continues to work towards addressing the overall infrastructure deficit. Our existing inventory of infrastructure – largely roads, bridges and social housing downloaded from the Province in the 1990’s – is aging, becoming more costly to operate and maintain. 19
While current projections indicate that we should be spending over $27 million dollars on average per year on upgrades, the ten-year plan anticipates significant underspending. To help mitigate this gap, in 2015, County Council approved an annual dedicated infrastructure levy, incremental to the base levy. On an ongoing basis, this levy will be allotted to a reserve specific for financing future build projects, ensuring the County is able to realize these projects from a position of fiscal strength. We will need to leverage conservative borrowing strategies in the future to complete several of the significant infrastructure projects on the horizon. At the same time, the County is continually evaluating opportunities to access available funding from other levels of government, and we are also engaged in several best practice activities to promote fiscal sustainability, including: • long –term planning for funding of reserves to finance future liabilities, minimize future debt and ensure capacity to finance unforeseen events; • strategic investment of existing reserves, as well as funds not currently in use, the interest from which is allotted back into reserves; and • careful, ongoing assessment of the ten-year asset management plan for new efficiencies and opportunities. Our solid 2015 financial results are a testament to the strength of Council leadership, as well as to long-term planning that helps us to identify and address economic and fiscal challenges. We will continue to strive for Organizational Excellence through the application of due diligence measures, through agility in adapting to economic and legislative changes, and through responsive action to meet the evolving needs of Northumberland residents. As in prior years, I would like to acknowledge the dedication of the County Finance team and our internal partners in delivering a thorough, proactive budget and a successful audit. By working together, we will continue to fulfill our commitments from the Strategic Plan to foster a strong and vibrant Northumberland County. Glenn Dees, CPA, CGA Director of Finance/Treasurer Northumberland County
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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 County’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.
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 County’s financial position and operating results as contained in the Financial Statements, 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. 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.
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2015 Financial Year in Review
2015 Financial Results NO R TH U MBER LA ND CO U NTY
Financial Assets
Annual Report Overview
The County is now in a positive net financial asset position of $1.8M.
$5.1M
2015 $1.8M
Assets
Long-term Debt
Reserves
Liabilities
2012 $14M
2011 $19M
2013 $7M
$3.5M
2014 $3M
$1.3M
Increase in total revenue from 2014
$1.7M Expenses
$5.8M Cash & Investments
$2.2M Net book value of assets
*All comparative data references 2014 results.
49%
Revenues by Type (M) 31%
10% 3%
2%
2%
2%
.7%
Revenues by Type
39%
.1%
Taxation, $48.4 Provincial Government, $30.5 User charges, $10.2 Federal Government, $3.3 Rents, $2.2 Provincial Offences, $1.5 Other Municipalities, $1.5 Investments, $0.7 Other, $0.1
Expenses by Type (M) 21%
18% 12%
9% .7%
.1%
.1%
Expenses by Type
35%
Salaries & Benefits, $35.6 External Transfers, $19.4 Materials, $16.4 Contracted Services, $10.8 Amortization, $8.2 Interest, $0.6 Rents & Financial, $0.1 Loss on Capital Asset Disposal, $0.1
Expenses by Service 17% 14%
14%
10% 4%
Expenses by Service
3%
3%
Social & Family Services 35% Transportation 17% Health Services 14% Environmental Services 14% Social Housing 10% Ec Development/Tourism/Forest 4% General Government 3% Protection Services 3%
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2015 Financial Statement Overview ACCUMULATED SURPLUS ANALYSIS $180,000,000 $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 2014
2015
The County of Northumberland’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 County’s financial affairs similar to a private sector financial statement presentation. This chart is a high level overview of the 2015 financial position of the County.
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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 County’s accumulated surplus for fiscal year 2015 is $155.0 million (2014 $147.9 million). The accumulated surplus consists of tangible capital assets of $153.0 million; reserves of $41.5 million; offset by unfunded landfill closure and post-closure liability $24.9 million; unfunded employee future benefits liability $1.9 million and long term debt $12.7 million. Note 9 in the consolidated financial statements provides a detailed breakdown. The County’s Net Financial Liabilities were $1.8 million in 2015 (2014 $3.1 million Net Financial Liability). The increase was primarily due to a $5.8 million increase of cash and investments and a $1.3 million decrease in long term debt. This was offset by an increase of $1.5 million in the landfill closure/post-closure liability, a $0.4 million increase in accounts payable and accrued liabilities and a reduction in accounts receivable of $0.3 million. Long term debt was paid down without accumulating new debt in 2015.
FINANCIAL ASSETS SUMMARY Total Financial Assets as of December 31, 2015 were $50.5 million (2014 $45.0 million) an increase of $5.5 million.
$26.7
$42.2
$45.0
2013
2014
$50.5
$32.4
$17.4
2010
2011
2012
2015
Cash and investments at year end 2015 were $47.9 million (2014 $42.2 million) which is an increase of $5.7 million. The increase is primarily attributable to funds for projects carried forward for completion in 2016. Accounts Receivable were $2.5 million at the end of 2015 (2014 $2.8 million).
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FINANCIAL LIABILITIES SUMMARY Total Liabilities at the end of 2015 were $48.7 million (2014 $48.1 million), a increase of $0.6 million from the prior year.
$49.2 $48.7 $48.1 $46.9
$46.6 $46.1
2010
2011
2012
2013
2014
2015
Accounts Payable and accrued liabilities were $9.2 million in 2015 (2014 $8.8 million), an increase of $0.4 million. This is primarily due to timing for trade accounts payable, accrued liabilities and funding from upper levels of government. Employee benefits and other liabilities were $1.9 million in 2015 (2014 $1.9 million.) These figures are based on actuarial liability estimates. Long term debt is $12.7 million (2014 $14 .0 million). The decrease of $1.3 million represents the payment of debt principal. There was no new debt assumed in 2015. Landfill closure and post-closure liability was $24.9 million at the end of 2015 (2014 $23.4 million). The increase of $1.5 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 $153.3 million as of December 31, 2015 (2014 $151.0 million). Non-financial assets consist primarily of tangible capital assets. The increase of $2.3 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 2015 were $98.4 million (2014 $94.9 million), an increase of $3.5 million. •
Taxation revenues (levy from lower tiers) in 2015 were $48.4 million (2014 $46.9 million), an increase of $1.5 million. • The County had assessment growth of 1.12 percent in 2015. • County Council approved the 2015 budget which provided for a 2.5% tax levy increase. This reflects an increase of $17.70 for the average single family home.
•
Funding from the Province of Ontario was $29.5 million in 2015 (2014 $27.6 million), an increase of $1.9 million from the previous year. This increase reflects changes to various funding programs inclusive of Ontario Works, Community Homelessness Prevention Initiative, Court Security and Paramedic operations.
•
User charges were $10.2 million in 2015 (2014 $10.0 million). The increase is attributable to a County forest timber harvest in 2015 and revenues earned from land use planning services which the County assumed responsibility for in 2014.
•
Funding from the Federal government was $3.4 million in 2015 (2014 $3.4 million).
•
Revenue from rents were $2.2 million in 2015 (2014 $2.3 million), a decrease of $0.1 million from the prior year.
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REVENUES CONTINUED •
Provincial Offences revenues in 2015 were $1.5 million (2014 $1.5 million). This reflects stable earnings from Provincial Offences.
•
2015 investment revenue was $0.7 million (2014 $0.6 million). The increase of $0.1 million reflects the increased funds in reserves available for investing.
•
Revenue from other municipalities represents cost recovery. The cost recovery was $1.5 million (2014 $1.4 million).
•
Revenue from the Waste Diversion Ontario Grant was $1.0 million (2014 $0.9 million).
COUNTY REVENUES (MILLIONS) Federal Gov't $3.4 User Charges $10.2 POA $1.5
Provincial Gov't $29.4
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Rents $2.2
Other Municipalities $1.5
Investments $0.7
Waste Diversion ON Grants $1.0
Taxation $48.4
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 2015 were $91.3 million (2014 $89.6 million), an increase of $1.7 million. • Labour costs (salaries, wages and benefits) in 2015 were $35.6 million (2014 $34.6 million), an increase of $1.0 million from the prior year. The increase is primarily the result of contract settlements and pay adjustments (cost of living). • Materials and supplies in 2015 were $16.4 million (2014 $16.7 million), a decrease of $0.3 million from the prior year. The decrease is primarily attributed to a reclassification of Court Security costs to Contracted Services.
EXPENSES BY SERVICE Ec Dev/ Tourism/ Forest 4% Transportation 17%
Social & Family Services (incl. Long Term Care) 35%
Government Services 3%
Protection Services 3% Health Services 14%
Environment Services 14% Social Housing 10%
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EXPENSES CONTINUED •
Contracted services in 2015 were $10.8 million (2014 $10.4 million), an increase of $0.4 million from the prior year. The increase is attributable to the change in Landfill Post-closure Liability, reclassification of Court Security costs, and the implementation of leaf/yard waste collection. This was partially offset by timing of projects.
•
Amortization of Tangible Capital Assets in 2015 was $8.2 million (2014 $7.9 million), an increase of $0.3 million from the prior year. This is reflective of an increase in the valuation of tangible capital assets through replacement and rehabilitation.
•
Loss on disposal of assets in 2015 was $0.1 million (2014 $0.4 million.)
•
Interest charges in 2015 were $0.6 million (2014 $0.7 million) which is $0.1 million less than the prior year as a result of the reduction in long-term debt liabilities.
•
External transfers in 2015 were $19.4 million (2014 $19.0 million) , an increase of $0.4 million. The change is primarily the result of utilization of additional provincial funding for Social Services and Housing programs.
EXPENSES BY TYPE Loss on TCA disposal 0.1% Materials 18%
Amortization 9% Interest 0.7% Contracted Services 12%
Rent & Financial 0.1%
Salaries & Benefits 39%
30
External Transfers 21%
LONG-TERM DEBT
Bank Loan – RBC (matures 2017) Bank Loan – BMO (matures 2017) Ontario Infrastructure Projects Corporation (matures 2017) Ontario Infrastructure Projects Corporation (matures 2019) Ontario Infrastructure Projects Corporation (matures 2020) Ontario Infrastructure Projects Corporation (matures 2028) Ontario Infrastructure Projects Corporation (matures 2035) Total
Balance Owing December 31, 2015 $ 70,196 $ 6,518,09 $ 407,006 $ 1,073,533 $ 618,891 $ 1,663,254 $ 2,379,548 $ 12,730,523
The County has $12.7 million in long-term debt at then end of 2015 (2014 $14.0 million), a $1.3 million decrease. Debt principal was paid down in 2015 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.
31
CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS The statement of change in net financial assets (net debt) explains the difference between a municipality’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).
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 OVERVIEW All County assets as at the end of 2015 have been inventoried, valued, and recorded in the financial reporting system for accounting and reporting purposes. The County’s net book value of tangible capital assets at the end of 2015 were $153.0 million (2014 $150.8 million). Refer to Note #8 in the Financial Statements for a detailed breakdown of tangible capital asset activity for 2015 as well as the Consolidated Schedule of Tangible Capital Assets (page 52).
TANGIBLE CAPITAL ASSETS BY TYPE $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $Roads & Bridges
Buildings
Land & Equipment & Improvements Computers
Vehicles 2014
2014 Total = $150.8M 2015 Total = $153.0M 32
Assets Under Construction 2015
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 2015 totaled $41.5 million (2013 $36.4 million), an increase of $5.1 million. Increase in reserve balances over recent years reflect 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) Waste Services, $3.4 Social Housing, $9.0
Economic Development, Tourism & Forest, $0.3
Facilities, $1.0
Transportation Services, $6.5
Social Services, $0.5
WSIB (Schedule2), $3.7 Golden Plough Lodge, $3.3
Emergency Planning, $0.3 Technological Development, 0.6
General/Corporate Reserve, $11.7
Ambulance Services, $1.0
33
2015 Financial Statements
CORPORATION OF THE COUNTY OF NORTHUMBERLAND For The Year Ended December 31, 2015 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.
Warden
Date
Treasurer
Date
35
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 consolidated financial statements of the Corporation of the County of Northumberland, which comprise the consolidated statement of financial position as at December 31, 2015, the consolidated statements of operations and accumulated surplus, change in net financial assets/(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 Corporation of the County of Northumberland as at December 31, 2015 and the results of its operations and cash flows for the year then ended in accordance with Canadian Public Sector Accounting Standards. Chartered Professional Accountants Licensed Public Accountants Peterborough, Ontario May 20, 2016
36
CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED STATEMENT OF FINANCIAL POSITION At December 31, 2015 2015 $
2014 $
FINANCIAL ASSETS Cash Investments (note 5) Accounts receivable
17,362,229 30,567,149 2,545,064
4,232,533 37,946,802 2,771,684
TOTAL FINANCIAL ASSETS
50,474,442
44,951,019
LIABILITIES Accounts payable and accrued liabilities Long term debt (note 4) Landfill closure and post-closure liability (note 6) Employee future benefits liability (note 7)
9,219,013 12,730,523 24,902,072 1,867,779
8,778,417 13,992,307 23,400,799 1,896,797
TOTAL LIABILITIES
48,719,387
48,068,320
1,755,055
(3,117,301)
NON-FINANCIAL ASSETS Tangible capital assets (note 8) Prepaid expenses
153,007,460 257,909
150,789,035 245,352
TOTAL NON-FINANCIAL ASSETS
153,265,369
151,034,387
ACCUMULATED SURPLUS (note 9)
155,020,424
147,917,086
NET FINANCIAL ASSETS/(LIABILITIES)
The accompanying notes are an integral part of these financial statements
37
CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS For the Year Ended December 31, 2015
38
Budget 2015 $ (Unaudited)
Actual 2015 $
Actual 2014 $
REVENUES Tax levy from lower tiers User charges Government of Canada Province of Ontario Other municipalities Investment income Provincial Offences Act charges (note 12) Rents Federal gas tax earned Waste Diversion Ontario grants Other Donations
48,523,611 10,112,120 995,074 28,576,254 1,100,000 600,000 1,500,000 2,385,612 2,364,412 847,000 500
48,437,304 10,205,713 995,072 29,498,612 1,451,352 723,451 1,468,059 2,230,102 2,364,412 992,587 840 6,300
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
TOTAL REVENUES
97,004,583
98,373,804
94,862,515
EXPENSES General government Protection services Transportation services Environmental services Health services Social and family services Social housing Economic development, tourism and forest
2,943,513 2,524,584 15,603,003 11,824,015 13,264,911 32,233,553 9,241,262 3,085,600
2,743,914 2,638,029 15,606,854 13,059,516 13,108,017 32,206,033 8,605,259 3,302,844
3,031,753 1,958,752 16,812,421 12,183,198 12,759,755 30,959,306 9,036,549 2,898,472
TOTAL EXPENSES
90,720,441
91,270,466
89,640,206
ANNUAL SURPLUS
6,284,142
7,103,338
5,222,309
ACCUMULATED SURPLUS - beginning of year
147,917,086
147,917,086
142,694,777
ACCUMULATED SURPLUS - end of year
154,201,228
155,020,424
147,917,086
The accompanying notes are an integral part of these ďŹ nancial statements
CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS/(LIABILITIES) For the Year Ended December 31, 2015 Budget 2015 $ (Unaudited)
Actual 2015 $
Actual 2014 $
6,284,142
7,103,338
5,222,309
8,300,000 (15,755,900) -
8,240,563 (10,663,282) 84,628 119,666 (12,557)
7,858,104 (9,684,253) 449,229 37,258 (29,479)
CHANGE IN NET FINANCIAL ASSETS/(LIABILITIES)
(1,171,758)
4,872,356
3,853,168
NET FINANCIAL ASSETS/(LIABILITIES) - beginning of year
(3,117,301)
(3,117,301)
(6,970,469)
NET FINANCIAL ASSETS/(LIABILITIES) - end of year
(4,289,059)
1,755,055
(3,117,301)
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
The accompanying notes are an integral part of these ямБnancial statements
39
CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 2015 $
2014 $
7,103,338 226,620 (12,557) 440,596
5,222,309 (3,228) (29,479) (1,086,451)
8,240,563 84,628 1,501,273 (29,018)
7,858,104 449,229 1,062,688 160,097
17,555,443
13,633,269
CAPITAL Acquisition of tangible capital assets Proceeds on disposal of tangible capital assets
(10,663,282) 119,666
(9,684,253) 37,258
Net decrease in cash from capital transactions
(10,543,616)
(9,646,995)
(13,923,947) 21,303,600
(37,946,802) 18,260,222
7,379,653
(19,686,580)
FINANCING Debt principal repayments
(1,261,784)
(1,265,089)
INCREASE/(DECREASE) IN CASH
13,129,696
(16,965,395)
4,232,533
21,197,928
17,362,229
4,232,533
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/(decrease) 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
CASH - beginning of year CASH - end of year
40
The accompanying notes are an integral part of these financial statements
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015 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: • Northumberland County Housing Corporation All interfund assets and liabilities and revenues and expenses are eliminated. (b) 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. (c) 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.
41
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015 1.
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. The County establishes the tax rates annually based on the amount required to be raised. These tax rates are used to levy amounts to the lower tier Municipalities are based on their annual assessment. Adjustments to the lower tier levy amounts for additions to and reductions in assessment are reported in the financial statements when amounts can be reasonably determined. Fines levied under the Provincial Offences Act 1997 are recognized when the funds are received (see note 12). (e) 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. (f)
Reserves Certain amounts, as approved by Council, are set aside in reserves for future operating and capital purposes. Transfers to and/or from reserves are an adjustment to the respective fund when approved.
(g) 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:
42
•
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.
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015 1.
SIGNIFICANT ACCOUNTING POLICIES, continued (h) 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.
2.
CHANGE IN ACCOUNTING POLICY The County has implemented PSA section 3260 Liability for Contaminated Sites. Section 3260 requires governments to record a liability in their financial statements if they have a contaminated site that meets the requirements set out in the standard. The standard defines contamination as the introduction into air, soil, water, or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard. The standard generally applies to sites that are not in productive use. Sites that are in productive use are only considered contaminated if there was an unexpected event that resulted in contamination. This change has been applied retroactively without restatement of prior periods. The adoption of this standard did not have an impact on the County's financial statements.
3.
BUDGET FIGURES The budget, approved by the County, for 2015 is reflected on the Consolidated Statement of Operations and Accumulated Surplus and the Consolidated Statement of Change in Net Financial Assets/(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. The following is a reconciliation of the Council approved budget amounts to the PSA amounts: Revenue $
Expenses $
83,900,000 16,500,000
83,900,000 16,500,000
100,400,000
100,400,000
Less: Tangible capital assets capitalized Add: Amortization of tangible capital assets Less: Principal repayment of long term debt Add: Net transfer from reserves Add: Change in unfunded liabilities Less: Interdepartmental charges
(3,395,417)
(15,755,900) 8,300,000 (1,261,790) 1,633,548 800,000 (3,395,417)
Adjusted budget per Consolidated Statement of Operations
97,004,583
90,720,441
Council approved budget: Operating Capital Total Council approved budget
43
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015 4.
LONG TERM DEBT (a) The balance of long term debt reported on the Consolidated Statement of Financial Position is made up of the following: 2015 $
2014 $
Long term bank loan, due July 2017, repayable in blended monthly instalments of $3,764 and bears interest at 2.27% per annum.
70,196
113,255
Long term bank loan, due September 2017, repayable in monthly principal instalments of $32,428, plus interest at 4.93% per annum.
6,518,095
6,907,235
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.
407,006
663,856
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.
1,663,254
1,757,650
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.
816,379
1,027,826
Ontario Infrastructure Projects Corporation due September 15, 2019, repayable in blended semi annual instalments of $35,104 and bears interest at 4% per annum.
257,153
315,324
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.
2,379,547
2,451,629
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.
618,893
741,567
Ontario Infrastructure Projects Corporation due May 4, 2015, repaid during the year.
-
13,965
12,730,523
13,992,307
(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 $641,061 (2014 - $697,268).
44
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015 4.
LONG TERM DEBT, continued (d) The long term debt reported in (a) of this note is repayable as follows:
5.
Principal $
Interest $
Total $
2016 2017 2018 2019 2020
1,285,133 6,903,283 636,613 537,871 284,999
583,223 453,609 201,433 173,136 152,666
1,868,356 7,356,892 838,046 711,007 437,665
2021 and subsequent years
9,647,899 3,082,624
1,564,067 992,997
11,211,966 4,075,621
12,730,523
2,557,064
15,287,587
2015 $
2014 $
4,064,254
13,972,322
26,502,895
23,974,480
30,567,149
37,946,802
INVESTMENTS
Renaissance high interest savings account. Corporate bonds bearing interest rates between 1.80% and 5.10%, maturing between April 21, 2016 and December 15, 2025.
6.
LANDFILL CLOSURE AND POST-CLOSURE LIABILITY The liability for landfill closure and post-closure costs of $24,902,072 (2014 - $23,400,799) has been estimated using discounted future cash flows associated with closure and post-closure care activities for the County’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, remediation and consulting fees for 25 years after the site is closed or longer if required by the Ministry of the Environment or as determined by management. 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 $26,512,208 as at December 31, 2015 (2014 - $25,018,687) using a discount factor of 4% and an inflation rate of 2%. The remaining capacity of the one operational landfill site is estimated at 94,722 m3 (2014 - 134,442 m3) which is 24.3% (2014 - 34.5%) of the site’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 of the Environment approval to expand the site.
45
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015
7.
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 $1,867,779 (2014 - $1,896,797) has been determined by an actuarial review completed as of December 31, 2014. 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 liability is comprised of the following amounts:
Accrued benefit obligation Unamortized actuarial gains/(losses)
2015 $
2014 $
1,288,588 579,191
1,259,899 636,898
1,867,779
1,896,797
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 Expected average remaining service life
4.25% 38% of benefit costs 6.7% 9.56 years
The continuity of WSIB liability is as follows:
46
2015 $
2014 $
Accrued benefit obligation at January 1 Unamortized actuarial gains/(losses)
1,259,899 636,898
1,896,223 (159,523)
Liability at January 1 Current year benefit cost Interest Amortization of actuarial (gain)/loss Less: benefit payments
1,896,797 165,059 53,028 (57,707) (189,398)
1,736,700 416,824 81,829 19,941 (358,497)
1,867,779
1,896,797
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015
8.
TANGIBLE CAPITAL ASSETS The net book value of the County's tangible capital assets are:
General Land Land improvements Buildings Equipment and computers Vehicles Infrastructure Roads and bridges
Assets under construction
2015 $
2014 $
14,196,111 268,939 27,364,703 7,469,094 5,707,997
13,739,910 312,320 27,464,776 6,026,249 5,313,039
93,524,780
92,429,005
148,531,624
145,285,299
4,475,836
5,503,736
153,007,460
150,789,035
For additional information, see the Consolidated Schedule of Tangible Capital Assets. During the year there were no write-downs of assets (2014 - $Nil).
(2014 - $Nil) and no interest capitalized
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
2015 $
2014 $
13,662,961 148,145 99,698,255 22,931,114 1,501,741 910,094 10,084,328 4,070,822
14,050,440 125,776 98,436,711 21,483,008 1,013,454 748,601 11,158,261 3,772,784
153,007,460
150,789,035
47
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015
9.
ACCUMULATED SURPLUS Accumulated surplus consists of the following: 2015 $
2014 $
(24,902,072) (1,867,779)
(23,400,799) (1,896,797)
(26,769,851)
(25,297,596)
153,007,460 (12,730,523)
150,789,035 (13,992,307)
140,276,937
136,796,728
113,507,086
111,499,132
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 Plumbing and septic inspections Land use planning
821,277 10,881,276 6,472,065 3,371,347 549,000 8,998,025 3,318,390 1,033,237 619,057 260,050 3,749,709 1,004,065 327,962 57,878 50,000
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 3,441,688 784,065 299,111 25,000 -
Total Reserves
41,513,338
36,417,954
155,020,424
147,917,086
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 (“OMERS”), 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 2015 were $2,340,010 (2014 - $2,274,262).
48
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015
11. 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
Budget 2015 $ (Unaudited)
Actual 2015 $
Actual 2014 $
36,670,011 639,941 15,480,514 9,699,925 97,511 19,832,539 8,300,000 -
35,610,961 641,061 16,372,640 10,805,360 130,810 19,384,443 8,240,563 84,628
34,560,298 697,268 16,709,730 10,383,555 75,243 18,906,779 7,858,104 449,229
90,720,441
91,270,466
89,640,206
12. 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. Revenues and expenses related to these operations have been reported as follows:
Gross revenues Operating costs and allocated charges Net County revenue used to reduce tax levy
2015 $
2014 $
1,468,059 (943,832)
1,461,891 (972,704)
524,227
489,187
13. TRUST FUNDS Trust funds administered by the County amounting to $150,093 (2014 - $175,113) 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.
49
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015
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 1.0% per annum. Council authorized the temporary borrowing limit by by-law 02-15. At December 31, 2015 there was no balance outstanding (2014 - $Nil). 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. COMMITMENTS 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 municipalities’ 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. During 2009, the County entered into a multi-year agreement for the collection of garbage. The annual costs under the agreement, which goes until the end of 2018, are approximately $2,300,000. 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.
50
CORPORATION OF THE COUNTY OF NORTHUMBERLAND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended December 31, 2015 17. SEGMENTED INFORMATION, continued 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. 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. 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.”
51
CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED SCHEDULE OF TANGIBLE CAPITAL ASSETS For the Year Ended December 31, 2015 General Land Improvements $
Land $
Buildings $
Infrastructure Equipment and Computers $
Vehicles $
Roads and Bridges $
Assets Under Construction $
Totals $
COST Balance, beginning of year Add: additions during the year Less: disposals during the year Internal transfers
13,739,910 456,201 -
563,715 -
53,491,518 239,794 1,577,368
13,600,365 1,522,402 436,118 674,873
11,123,548 1,461,618 473,240 -
166,034,535 5,688,250 1,956,377 70,646
5,503,736 1,295,017 30 (2,322,887)
264,057,327 10,663,282 2,865,765 -
Balance, end of year
14,196,111
563,715
55,308,680
15,361,522
12,111,926
169,837,054
4,475,836
271,854,844
ACCUMULATED AMORTIZATION Balance, beginning of year Add: additions during the year Less: disposals during the year
-
251,395 43,381 -
26,026,742 1,917,235 -
7,574,116 748,430 430,118
5,810,509 1,066,660 473,240
73,605,530 4,464,857 1,758,113
-
113,268,292 8,240,563 2,661,471
Balance, end of year
-
294,776
27,943,977
7,892,428
6,403,929
76,312,274
-
118,847,384
14,196,111
268,939
27,364,703
7,469,094
5,707,997
93,524,780
4,475,836
153,007,460
NET BOOK VALUE OF TANGIBLE CAPITAL ASSETS
52
CORPORATION OF THE COUNTY OF NORTHUMBERLAND CONSOLIDATED SCHEDULE OF SEGMENT DISCLOSURE For the Year Ended December 31, 2015
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
1,875,300 286,527 723,451 790,675 65
475,434 314,989 144,387 1,468,059 -
15,240,126 244,530 676,378 1,451,352 2,364,412 -
5,359,445 5,804,874 326,929 6,092 992,587 -
7,838,223 35,731 5,722,555 -
9,173,983 3,218,709 21,678,756 6,235
6,230,010 49,452 1,251,371 45,000 1,433,335 -
2,244,783 250,901 281,088 367,220 840 -
48,437,304 10,205,713 29,405,086 1,088,598 1,451,352 723,451 1,468,059 2,230,102 2,364,412 992,587 840 6,300
Total revenues
3,676,018
2,402,869
19,976,798
12,489,927
13,596,509
34,077,683
9,009,168
3,144,832
98,373,804
4,017,793 442,615 2,000,386 1,982,290 33,146 63,376 459,439
793,453 12,037 504,713 558,110 14,489 8,265
3,507,320 26,595 4,030,390 1,875,301 5,102,398
3,785,722 124,726 3,053,263 4,744,604 7,036 740,274
8,670,721 1,150,892 63,177 33,971 1,925,824 499,533
13,121,161 32,973 2,446,240 494,183 38,164 14,066,437 76,498
556,387 2,115 2,104,328 458,126 4,004 3,328,806 1,155,060
1,158,404 1,082,428 629,569 199,096
35,610,961 641,061 16,372,640 10,805,360 130,810 19,384,443 8,240,563
(2,205) (6,252,926)
746,962
175,610 889,240
603,891
(88,777) 852,676
1,930,377
996,433
233,347
84,628 -
2,743,914
2,638,029
15,606,854
13,059,516
13,108,017
32,206,033
8,605,259
3,302,844
91,270,466
932,104
(235,160)
4,369,944
(569,589)
488,492
1,871,650
403,909
(158,012)
7,103,338
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 Total expenses Net surplus/(deficit)
53
CORPORATION OF THE COUNTY OF NORTHUMBERLAND 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
54
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, 2015, the statement of continuity 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 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 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 qualified audit opinion.
Basis for Qualified Opinion In common with many municipal trust funds, the completeness of the revenue derived from residents is not susceptible to satisfactory audit verification. Accordingly, our verification of these 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 residents' contributions, 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, 2015 and the continuity of the Trust Funds for the year then ended in accordance with Canadian Public Sector Accounting Standards. Chartered Professional Accountants Licensed Public Accountants Peterborough, Ontario May 20, 2016
55
CORPORATION OF THE COUNTY OF NORTHUMBERLAND TRUST FUNDS STATEMENT OF FINANCIAL POSITION At December 31, 2015 Blacklock Bequest
FINANCIAL ASSETS Cash Investment (note 3)
FUND BALANCES Due to Residents Bequests
56
Safekeeping Pensioners $
$
2015 Total $
2014 Total $
624 110,862
38,607 -
39,231 110,862
65,637 109,476
111,486
38,607
150,093
175,113
111,486
38,607 -
38,607 111,486
65,020 110,093
111,486
38,607
150,093
175,113
CORPORATION OF THE COUNTY OF NORTHUMBERLAND TRUST FUNDS STATEMENT OF CONTINUITY For the Year Ended December 31, 2015
BALANCES - beginning of year RECEIPTS Residents' contributions Interest earned
EXPENSES Residents' personal costs Maintenance - County home
BALANCES - end of year
Blacklock Bequest
Safekeeping Pensioners
$
$
2015 Total $
2014 Total $
110,093
65,020
175,113
154,020
1,393
54,420 -
54,420 1,393
179,308 7,054
1,393
54,420
55,813
186,362
-
80,833 -
80,833 -
165,175 94
-
80,833
80,833
165,269
111,486
38,607
150,093
175,113
57
CORPORATION OF THE COUNTY OF NORTHUMBERLAND TRUST FUNDS NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2015 1.
PURPOSE OF TRUST FUNDS The County is required, under Section 241 of Ontario Regulation 79/10 as prescribed by the Long-Term Care Homes Act, 2007, to maintain a trust fund to manage the funds of the residents of the County's retirement residences.
2.
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) 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.
3.
INVESTMENT The investment of $110,862 is recorded at cost. The funds have been invested in a Renaissance high interest savings account SR F (5001) with CIBC Wood Gundy.
58
2015 Statistics Northumberland County
County of Northumberland Five-Year Financial Review MUNICIPALITY STATISTICS Fiscal Year
2015
2014
2013
2012
2011
Population
86,188
86,735
86,013
85,297
84,587
1,905 sq. km
1,905 sq. km
1,905 sq. km
1,905 sq. km
1,905 sq. km
38,845
38,434
38,027
37,624
37,226
2015
2014
2013
2012
2011
Full time
326
328
302
290
285
Part time
198
181
197
186
185
Total head count
524
509
499
476
470
Total full time equivalent
387
Area in Acres Households
Employees
TAX RATE INFORMATION Assessment Valuation 2015 2014 2013 2012 2011 Year Residential, farm, multi-residential, 8,866,987,671 8,613,564,544 8,359,763,485 8,2135,736,340 7,669,243,455 forest Commercial, industrial 967,113,857 926,923,020 894,190,354 804,725,775 774,658,875 and other Total Taxable 9,834,101,528 9,540,487,564 9,253,953,839 9,018,299,409 8,443,902,330 Assessment Commercial, industrial and business as a 9.83% 9.72% 9.67% 8.92% 9.17% percentage of taxable income
60
Residential
2015
2014
2013
2012
2011
0.0019500
0.00203000
0.0021200
0.0022100
0.00231000
0.00471777
0.00469700
0.00468091
0.00458759
0.00471047
0.0055718
0.00550147
0.00520412
0.00489335
0.00498453
Lower Tier – Cramahe Township
0.0075095
0.00746345
0.00745243
0.00728713
0.00746469
Lower Tier – Hamilton Township
0.00543986
0.00540965
0.00540461
0.00529553
0.00551615
0.0084576
0.00846560
0.00842460
0.00831770
0.00853692
0.00492768
0.00472194
0.00440494
0.00423300
0.00418000
0.0041607
0.00448294
0.00905444
0.00886400
0.009382
0.0075605
0.00754775
0.00751552
0.00735050
0.00752103
0.00498977
0.00460663
0.00450942
0.00437184
0.00453036
2015
2014
2013
2012
2011
0.0143000
0.01460000
0.01490000
0.01490000
0.01667750
0.0071484
0.00711689
0.00709252
0.00695111
0.00713730
0.0084424
0.00833583
0.00788528
0.00741440
0.00755256
Lower Tier – Cramahe Township
0.0113784
0.01130862
0.01129192
0.01104146
0.01131050
Lower Tier – Hamilton Township
0.0082425
0.00819670
0.00818907
0.00802379
0.00835808
0.012815
0.01282700
0.01276500
0.01260300
0.01293514
0.0074664
0.00715468
0.00667437
0.00641300
0.00633354
0.00630428
0.00679255
0.01371929
0.01343000
0.01423610
0.0114557
0.01143636
0.01138752
0.01113748
0.01139586
0.0075605
0.00697996
0.00683267
0.0066242
0.0068644
Education Upper Tier – Northumberland County Lower Tier – Municipality of Brighton
Lower Tier – Town of Cobourg Lower Tier – Municipality of Port Hope (Ward 2) Lower Tier – Former Port Hope (Ward 1) Lower Tier – Municipality of Trent Hills Lower Tier – Township of Alnwick/Haldimand
Commercial Education Upper Tier – Northumberland County Lower Tier – Municipality of Brighton
Lower Tier – Town of Cobourg Lower Tier – Municipality of Port Hope (Ward 2) Lower Tier – Former Port Hope (Ward 1) Lower Tier – Municipality of Trent Hills Lower Tier – Township of Alnwick/Haldimand
61
Industrial
2015
2014
2013
2012
2011
Education
0.01530000
0.01560000
0.01590000
0.01590000
0.01930000
0.01240773
0.01235311
0.01231080
0.01206536
0.01238852
0.01465383
0.01446888
0.01368684
0.0128651
0.01310932
Lower Tier – Cramahe Township
0.01974998
0.01962880
0.01959989
0.01916515
0.01963213
Lower Tier – Hamilton Township
0.0143068
0.01422738
0.01421412
0.01392724
0.01450749
Lower Tier – Town of Cobourg
0.0222436
0.02226450
0.02215670
0.02187560
0.02245210
0.0129598
0.01241870
0.01158499
0.01113100
0.01099340
0.0109426
0.01179014
0.02381318
0.02331200
0.02467466
0.0198841
0.01985059
0.01976583
0.01933181
0.01978030
0.01312309
0.01211542
0.01185977
0.01149793
0.01191484
Upper Tier – Northumberland County Lower Tier – Municipality of Brighton
Lower Tier – Municipality of Port Hope (Ward 2) Lower Tier – Former Port Hope (Ward 1) Lower Tier – Municipality of Trent Hills Lower Tier – Township of Alnwick/Haldimand
62
TAX LEVIES Property Tax Levies
2015
2014
2013
2012
2011
48,437,304
46,920,603
45,683,066
43,288,211
42,305,063
2015
2014
2013
2012
2011
Property taxation
48,437,304
46,920,603
45,683,066
43,288,211
42,305,063
User charges
10,205,713
10,022,496
9,977,597
12,080,768
11,639,133
995,072
982,396
993,201
993,634
1,060,403
Province of Ontario
29,498,612
27,645,599
26,492,965
25,847,840
25,817,839
Other Municipalities
1,451,352
1,383,973
1,525,405
226,107
234,177
723,451
637,088
418,873
325,502
240,975
6,300
47,689
8,294
7,307
12,597
Rents
2,230,102
2,271,372
2,265,034
2,035,792
2,134,799
Federal gas tax
2,364,412
2,430,349
2,468,018
3,030,341
2,240,723
992,587
923,821
887,094
993,806
1,302,052
840
135,238
--
--
--
1,468,059
1,461,891
1,647,934
1,667,778
1,447,867
98,373,804
94,862,515
92,367,481
90,497,086
88,435,628
County Portion Consolidated Revenues
Government of Canada
Investment income Donations
Waste diversion Ontario grants Other Provincial Oences Act charges Total Revenues
63
Consolidated Expenses by Function
2015
2014
2013
2012
2011
General Government
2,743,914
3,266,810
2,685,107
2,906,429
2,408,956
Protection Services
2,638,029
1,958,752
1,896,952
1,943,310
1,676,112
Transportation Services
15,606,854
16,812,421
15,317,996
14,299,195
13,977,471
Environmental Services
13,059,516
12,183,198
11,504,557
11,707,409
10,089,480
Health Services
13,108,017
12,759,755
12,601,979
11,554,651
10,890,290
Social and Family Services
32,206,033
30,959,306
29,722,474
29,700,369
29,171,137
Social Housing
8,605,259
9,036,549
9,162,362
9,164,868
9,891,393
Economic Development, Tourism & Forest
3,302,844
2,898,472
2,283,297
1,752,295
2,156,643
91,270,466
89,640,206
85,174,724
83,028,526
80,261,482
Annual Surplus/DeďŹ cit
7,103,338
5,222,309
7,192,757
7,468,560
8,174,146
Net Financial Liabilities
1,755,055
(3,117,301)
2015
2014
2013
2012
2011
34,560,298
32,755,162
30,636,130
29,364,599
697,268
753,038
811,234
867,245
Total Expenses by Function
Expenses by Object: Consolidated Statement of Operations
(6,970,469) (14,514,437) (19,419,024)
Salaries and BeneďŹ ts
35,610,961
Interest Charges
641,061
Materials
16,372,640
16,709,730
14,182,711
13,421,056
13,133,395
Contracted Services
10,805,360
10,383,555
9,896,082
10,210,942
9,137,698
Rents and Financial
130,810
75,243
105,702
130,473
157,331
External Transfers
19,384,443
18,906,779
18,973,326
20,024,543
20,209,580
Amortization
8,240,563
7,858,104
7,966,412
7,628,043
7,392,144
449,229
542,291
166,105
(510)
89,640,206
85,174,724
83,028,526
80,261,482
Loss/(Gain) on Disposal of Capital Assets Total Consolidated Expenses by Object
64
84,628 91,270,466
Municipal Debt Information: Long Term Liabilities
2015
2014
2013
2012
2011
General Municipal Activities
12,730,523
13,992,307
15,257,396
16,511,952
17,729,578
Per Capita
$146
$161
$177
$194
$210
Charges for Long-Term Liabilities
2015
2014
2013
2012
2011
641,061
697,268
753,038
811,234
867,245
7.33
8.04
8.76
9.51
10.25
13,214,379
12,637,230
12,711,002
12,403,909
11,555,653
General Municipal Activities Per Capita *Debt Repayment Limit (as determined by the Province)
65
TANGIBLE CAPITAL ASSETS Net Book Value
153,007,460 150,789,035 149,449,373 149,804,472 147,255,874
Amortization Accumulated Surplus County Operations Unfunded landfill closure & post-closure liability Unfunded employee future benefits liability
8,240,563
7,858,104
7,966,412
7,628,043
7,392,144
2015
2014
2013
2012
2011
0
0
0
0
0
(24,902,072) (23,400,799) (1,867,779)
(1,896,797)
(2,238,111) (21,477,867) (19,934,985) (1,736,700)
(1,578,187) (14,198,850)
Total (26,769,851) (25,297,596) (24,074,811) (23,056,054) (21,354,835) Tangible Capital Assets – NBV
153,007,460 150,789,035 149,449,373 149,804,472 147,255,874
Long-Term Debt
(12,730,523) (13,992,307) (15,257,396) (16,511,952) (17,729,578) Total 140,276,937 136,796,728 134,191,977 133,292,520 129,526,296
Surplus Reserves Total Accumulated Surplus
66
113,507,086 111,499,132 110,117,166 110,236,466 108,171,461 41,513,338
36,417,954
32,577,611
25,265,554
19,861,999
155,020,424 147,917,086 142,694,777 135,502,020 128,033,460
CONTACT INFORMATION Northumberland County 555 Courthouse Road Cobourg, ON K9A 5J6 Website www.northumberlandcounty.ca Public Inquiry 905-372-3329
NORTHUMBERLAND COUNTY MEMBERS OF COUNCIL Gil Brocanier
Warden
brocanierg@northumberlandcounty.ca
Marc Coombs
Councillor
coombs@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
walasm@northumberlandcounty.ca
67
Produced by
June 2016