Oakville Annual Report 2005 by Pier 8 Group

Town of Oakville 2005 Annual Report

Table of

Oakville is a

Contents

Oakville 2005 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Message from the Mayor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

dynamic community,

Members of Town Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

located on the

Message from the Town Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

shores of Lake

Key Accomplishments 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Ontario. Home to over 158,000 people, Oakville radiates small-town

Strategic Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Key Challenges and Actions – Looking Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Treasurer’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Comprehensive Financial Management & Planning Policies . . . . . . . . . . . . . . . . . . 16 Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Five-Year Review (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

charm, natural beauty and cultural vitality while providing all the advantages of an economically diverse and wellserviced urban community.

Preparing for the Future… Building on our Foundation Town services span environmental stewardship and protection, parks, trails, forests, harbours, recreation and community centres, building and heritage permits, by-laws and licensing, transit, land use planning, roads and works, and fire prevention and protection. Staff is committed to superior service delivery, while Town Council continues to look ahead to ensure we preserve the Town’s distinct quality of life.

Oakville 2005

Highlights How Your Tax Dollars are Spent within the Town

Comparative Tax Rates in Halton Region &/or GTA 2.0 %

Fire

Road Network

Corporate Support Oakville Transit

TORONTO

MISSISSAUGA

RICHMOND HILL

0.0 %

$ PER $100 PAID IN TAXES Residential

OAK VILLE

BRAMPTON

0.5 %

WATERLOO

8 5

KITCHENER

Recreation and Culture Information Technology

OSHAWA

BURLINGTON

Oakville Library

NEWMARKE T

1.0 %

MARKHAM

Parks and Open Space

Community Development

1.5 %

2005 RESIDENTIAL TAX RATE

Population Growth in Oakville

Who Receives Your Tax Dollars 160,000 155,000

Town 32%

150,000 145,000 140,000

Education 27%

155,700

158,700

2001

152,400

2000

148,800

125,000

144,738

130,000

140.459

135,000

2004

2005

120,000

Region 41%

2002 2003

Residential

TOWN OF OAKVILLE ANNUAL REPORT 2005

Message from the

The Town’s guiding mission: To promote quality of life by providing quality services valued by our community.

Mayor

n behalf of Town Council, I am proud to present the 2005 Annual Report for the Town of Oakville. When sworn into office for our 2004-2006 term, we promised to be a Council of action. We put in writing our commitment to creating a town that works for all its citizens, and sustaining the enviable lifestyle we all cherish. The Town’s guiding mission: to promote quality of life by providing quality services valued by our community. We also worked together to produce eight strategic priorities to guide us over our three-year term that directly respond to the wishes of our residents, from protecting our environment and improving traffic and transportation, to managing growth and supporting economic development. In 2005, we took significant steps forward to achieve these priorities. The Town’s lobbying efforts for gasoline tax dollars to be divided more fairly among the three orders of government resulted in Oakville receiving more than $11.7 million in federal gas tax revenues over the next five years for infrastructure renewal and $961,000 for public transit over the next two years. In addition, Council’s leadership on Ontario Municipal Board (OMB) reform helped ensure the Ontario government followed through on its promise to reform the OMB. The introduction of Bill 51, An Act to Amend the Planning Act and Other Acts, will help provide municipalities with greater responsibility for planning decisions in their communities. We anxiously await third reading and implementation. To bring awareness of these challenges and new opportunities for our increasingly diverse community, we held a Dialogue on Local Government with over 100 local residents, business people, Members of Council, and former Winnipeg Mayor Glen Murray. This event encouraged discussion on what we need to do to ensure the continued success of our community. Moving forward, the challenge for Oakville will be to sustain its quality of life. To do so, we need to work closely with our provincial and federal counterparts to ensure that municipalities have access to stable revenue sources that match our needs for balanced growth, traffic and transportation improvements, and environmental protection and balance. I would like to take this opportunity to thank all members of Council and our staff whose efforts help make Oakville one of the most desirable places to live, work and do business. Sincerely,

Ann Mulvale Mayor, Town of Oakville

TOWN OF OAKVILLE ANNUAL REPORT 2005

Mike Lansdown

Ralph Robinson

Fred Oliver

Cathy Duddeck

Keith Bird

Chris Stoate

Allan Elgar

Renee Sandelowsky

Jeff Knoll

Marc Grant

Janice Wright

Tom Adams

Members of

Town Council C

ouncil is the legislative governing body for the Town of Oakville and consists of the Mayor, elected at large by voters in the Town, and 12 councillors each elected by voters in their respective ward. Each ward is represented by two councillors – one representing the Town and one representing the Town and the Regional Municipality of Halton. Regional Councillors sit on Regional Council along with representatives from the Towns of Milton and Halton Hills, and the City of Burlington. Council’s term of office is three years. The current term began on December 1, 2003, and will end November 30, 2006.

WARD 1

WARD 4

• Mike Lansdown Regional and Town Councillor • Ralph Robinson Town Councillor

• Allan Elgar Regional and Town Councillor • Renee Sandelowsky Town Councillor

WARD 2

WARD 5

• Fred Oliver Regional and Town Councillor • Cathy Duddeck Town Councillor

• Jeff Knoll Regional and Town Councillor • Marc Grant Town Councillor

WARD 3

WARD 6

• Keith Bird Regional and Town Councillor • Chris Stoate Town Councillor

• Janice Wright Regional and Town Councillor • Tom Adams Town Councillor

Message from the

Town

The Town of Oakville places great emphasis on planning for the current and future needs of all residents and businesses.

Manager T

he Corporation of the Town of Oakville is committed to providing cost-effective, quality services that respond to the needs of our growing community. The Town employs over 900 dedicated staff who provide the services residents and businesses rely upon on a daily basis including emergency services, recreation and culture programs, parks and trails, road construction, winter road maintenance, building permits, and countless others. Our annual report gives us an opportunity to update you on the Town’s progress as well as highlight the challenges that lie ahead. In 2005, we continued to move forward on our Blueprint Oakville planning process. The Town places great emphasis on planning for the current and future needs of all residents and businesses. During this time of rapid growth and change, it is critical that we manage the expected growth in the Town responsibly and prudently so that our residents can continue to enjoy living in a healthy, safe and prosperous community. The resulting Master Plans will take centre stage in 2006. Our draft Environmental Strategic Plan, which was approved by Council in December 2005, outlines initiatives the Town and the community can support to protect and improve Oakville’s environment. The Town’s Master Plan for Parks, Recreation, Culture and Libraries will project expected demand for facilities and programs from now until 2030. Our North Oakville Secondary Plan will set out a vision for the development of the lands north of Dundas Street. The Secondary Plan is expected to be the focus of a lengthy Ontario Municipal Board hearing in 2006. Implementation of the Town’s Transportation Master Plan, which highlights the need for both transit and roads, will also move forward in 2006 as the impact of development in North Oakville becomes clearer. Looking ahead, factors that have been critical to our success so far – citizen input, leadership from Council, fiscally responsible management and employee commitment and innovation – will be critical to our future success. Fortunately, I work with a dedicated and talented group of employees at the Town of Oakville. With their support, I am confident that the Town will continue to be the community of choice for its residents and businesses.

Sincerely,

M. Joann Chechalk CAO/Town Manager Town of Oakville

TOWN OF OAKVILLE ANNUAL REPORT 2005

Community Identity

Environmental Stewardship

Effective Transportation

Local Economic Vitality

Strategic Priorities

Principled Land Use Planning

Financial Responsibility

Open Government

Intergovernmental Advocacy

Council has identified eight strategic priorities to guide the organization over the next few years as it delivers on its mission of providing quality services valued by our community and on the key goal of â&#x20AC;&#x153;Quality of Life.â&#x20AC;?

Key Accomplishments

In a moving ceremony held on November 10, 2005, the Town unveiled a war memorial to recognize Trafalgar Township veterans who served in World War I and II, and the Korean War.

2005

Community Identity

• The Town acquired the former QE Park School property located in Bronte and will address how it can be used as part of the Parks, Recreation, Culture and Library Master Plan.

• The Town’s new R-Zone policy promotes a Respect and Responsibility approach to reduce violence, vandalism and inappropriate behaviour in Town recreation and cultural facilities, parks/trails and sports fields. • The new Cultural Advisory Committee recognizes the benefits of gathering input from the community on arts, culture and heritage issues. • The Town, together with Halton Helping Hands of Oakville, launched a three-year pilot program for a user-paid driveway snow windrow removal service for seniors and the physically challenged. • The Oakville Public Library created new multilingual collections, a teen writing contest, a teen lounge at the Central branch, and a new Book Nook in the Clearview Early Years Centre. • The 2005 Accessibility Plan completed a number of projects to improve services for people with disabilities including removing access barriers to buildings and sidewalks, as well as improving the Town’s web and telephone system. • A comprehensive Ice Allocation Policy allocates existing ice times in a fair and equitable manner between Oakville’s two hockey leagues, figure skating and speed skating clubs. • The groundbreaking ceremony for the Glen Abbey Community Center expansion project took place in April. The new gymnastics facility (a partnership with the Oakville Gymnastics Club) opened in September. Further expansion projects will be completed in 2006.

Environmental Stewardship • Town Council approved a community-based Environmental Strategic Plan (ESP) to enhance environmental stewardship of the Town. • New environmental outreach activities included the GTA-wide 20-Minute Makeover, the Clean Air Commute, the Yellow Fish Road program, the ‘Doors Closed’ Campaign, Summer Fun Bus Day, and Oakville’s One-Tonne Challenge. • The Town successfully completed a prescribed burn at Iroquois Shoreline Woods Park. This deliberately set, low temperature fire encourages the establishment of certain natural and planted seedlings.

TOWN OF OAKVILLE ANNUAL REPORT 2005

Code (Bill 124 – the Building Code Statue Law Amendment Act). Approximately 40 building and fire prevention staff have demonstrated new Building Code knowledge and will continue training for the new 2006 Code.

• The Town installed the first phase of a Centralized Irrigation System to bring all sports field irrigation systems under a central control for improved irrigation management and monitoring. • The Town initiated a testing, monitoring and maintenance program for the Town’s storm water management ponds and storm sewer outfalls. Other projects include assessment studies for creek channels, shoreline protection, flood risks and Lake Ontario phosphorous testing. • Major stream rehabilitation took place on the Fourteen Mile Creek channel between Lakeshore Road and Rebecca Street, and emergency channel repairs and rehabilitation were done on Munn’s Creek north of McCraney Street.

Principled Land Use Planning • In June, Town Council authorized a review of the Town’s Official Plan to ensure the Plan directs future growth and development as well as the conservation of natural heritage lands in an appropriate manner. • The Town reviewed and commented on several new planning initiatives and reforms from the Provincial Government including the new Provincial Policy Statement issued under The Planning Act, the new Greenbelt Plan and the draft Growth Management Plan for the Greater Golden Horseshoe (Places to Grow).

Financial Responsibility • The Town implemented the provincial community use of schools initiative, which provides community groups with 28 percent reduction in costs for school rentals. • The Town saved in excess of $380,000 as a result of its participation in a purchasing co-op with other Halton municipalities. • The Town was proactive in obtaining $663,000 through the Canada Ontario Municipal Rural Infrastructure Fund (COMRIF) for local culvert improvement work. The objective of the COMRIF is to improve infrastructure in municipalities with populations under 250,000. • As part of the Corporate Rates and Fees Review initiative, the Town reviewed its permit application fee structure, which ensured all fees adequately recovered the cost of providing services.

Did you know…

• The Planning Services Department dealt with increasingly complex development, redevelopment and infill applications and related Ontario Municipal Board hearings. The Town continued with its practice of informing and obtaining input from interested parties early in the development application process.

• Once the Centralized Irrigation System is fully implemented in 2006, Oakville will be considered leading edge in terms of technology and best management practices with regard to integrated pest management and water conservation and efficiency.

• The Town prepared for the implementation of the new mandated timeframes for permit issuance as a result of amendments to the Ontario Building

• Over 1000 grade four students made the 2005 Arbor Week celebrations a huge success by planting 28 sugar maple trees at 28 schools sites across Oakville.

• Oakville’s population has grown by approximately 20 percent since 1996.

• The Town replaced its current financial systems, with an integrated financial and human resource system, to provide management with the tools required to meet the increasing demands the Town experiences in these areas. • The Town of Oakville was awarded the Government Finance Officers Association (GFOA) – Canadian Award for Financial Reporting. • The Town received the GFOA distinguished Budget Presentation Award for the fiscal year beginning January 1, 2005.

Key Accomplishments

Oakville will receive more than $11.7 million in federal gas tax revenues over the next five years for infrastructure renewal, and

2005

Effective Transportation

• Oakville Transit completed the design of the Uptown Core Transit Terminal and initiated acquisition of the land in 2005. Construction of the terminal will be completed in 2006. • Oakville Transit improved transit amenities for the community with five new low floor vehicles, walkways at 65 bus stop locations, and 14 new bus shelters. • Congestion on Third Line was significantly reduced as a result of the new Third Line/ QEW interchange, and the widening of Third Line between the QEW and Dundas Street. • The Town was heavily involved in the review of proposed QEW improvements by the Ontario Ministry of Transportation between Trafalgar Road and Third Line, and at the QEW/Bronte Road interchange, as well as proposed road network improvements by the Region of Halton on Dundas Street, Bronte Road and Dorval Drive. • Oakville continued to assist the neighbouring municipality of Milton by managing and operating their public transit system (at full cost recovery), and expanded the service by adding two additional routes.

$961,000 for

• Winter maintenance operations were enhanced by purchasing state-of-the-art snow removal equipment, establishing more efficient routing of fleet vehicles, and implementing a Winter Storm Emergency Communication call centre.

public transit.

Local Economic Vitality • Feedback from a series of sector roundtable meetings resulted in the Oakville Economic Development Alliance (OEDA) refocusing its economic development strategy to ensure the Town remains a desirable place to invest and to do business. • WNED TV Buffalo featured Oakville in a one-hour profile of the Town for its “Our Town” series. Twenty-five residents volunteered as videographers to film Oakville as seen through their eyes to create a heartfelt tribute to the community. • The OEDA received several marketing and tourism awards including the Oakville Beaver’s National Newspaper Award for the Oakville Visitors Guide, first place award from the Economic Developers Association of Canada (EDCO) for the OEDA Tourism Website, and two international marketing awards in the Financial Times – Foreign Direct Investment Magazine’s Canadian Cities and Provinces of the Future 2005-06 Competition. • Several businesses chose Oakville as their new home including The Weather Network and Automodular Corporation.

TOWN OF OAKVILLE ANNUAL REPORT 2005

Open Government

Intergovernmental Advocacy

• Mayor Mulvale, Members of Council and special guest, former Winnipeg Mayor Glen Murray, were joined by over 100 local residents and business people at the Town’s inaugural Dialogue on Local Government to discuss the challenges and opportunities facing the Town of Oakville.

• Council’s Ontario Municipal Board (OMB) Reform Committee led municipal efforts to pressure the Ontario government to reform the OMB. Bill 51, An Act to Amend the Planning Act and Other Acts, was introduced in December 2005 to give municipalities greater responsibility for planning decisions in their communities.

• Public and stakeholder input was essential to the successful review of several major by-laws including Taxi Licensing, Sign, and Noise. • Extensive public consultation for the Parks, Recreation, Culture and Library Master Plan included interviewing community groups, meetings with advisory committees, as well as surveys with residents, local organizations and youth. • Council’s governance review project on Standing Committees concluded with the affirmation of the existing structure. Recommended ward boundary changes from the Citizen Task Force were referred to the 2006-2009 Council for further public consideration. • The Town’s Council Chambers renovations includes improved sound and visual systems, and provides for web streaming of Council meetings. • Ongoing governance review projects include the Citizen Task Force reviewing Council financials, which will present its recommendations in 2006, and the Policy Review Task Force, which is continuing to review and update corporate policies. Upon Council approval, all corporate policies and procedures are posted to the Town’s website.

• Oakville will receive more than $11.7 million in federal gas tax revenues over the next five years for infrastructure renewal and $961,000 for public transit over the next two years as part of the “New Deal for Cities and Communities.” This new federal funding complements the $680 million in provincial gas tax revenues that will be allocated to Ontario municipalities for public transit over the next three years. • Mayor Mulvale continues as Co-Chair of the Ontario Mayors for Automotive Investments Group, which works with the Federal and Provincial Governments to find solutions to the challenges facing the automotive industry. The Town continues to value Ford Canada’s innovation, environmental enhancements and its investment in its Oakville manufacturing plant, and the impact it has on the local economy.

Did you know…

• In 2005, for every $100 of taxes collected, the Town’s portion was $32. The Region of Halton’s portion was $41, and the School Boards’ portion was $27. • The Town replaced approximately 1,300 metres of curb and 1,600 square metres of sidewalk. • In 2005, Oakville’s Development Services and Building Services Departments approved 23 development agreements, reviewed 25 subdivision engineering submissions and 75 technical report submissions, processed approximately 740 pool/ site alteration permits, issued 2871 building permits and conducted 45,800 inspections.

• Oakville is an active member of the Greater Toronto Area (GTA) – Clean Air Council which supports initiatives to improve our air quality. • The Town is a committed participant on the Association of Municipalities of Ontario (AMO) Task Force on Energy Conservation currently reviewing the Province’s Bill 21 – Energy Conservation Responsibility Act.

Key Challenges and Actions

The development and management of parks, recreation and cultural facilities are key priorities for the residents of Oakville.

Looking O

ur Blueprint Oakville initiative asked the community to take an active role in shaping the future of our community. The resulting Master Plans are practical guidelines to help ensure the Town continues to gain the social and economic benefits of growth, while at the same time managing it in such a way as to preserve the quality of life that citizens have come to expect. The implementation of these Plans will take centre stage for the Town in 2006.

Growth Management In keeping with the growth targets set by the Province, Oakville has planned for significant population and job growth over the next 20 to 30 years through its Official Plan and the North Oakville Secondary Plan (NOSP). These Plans address the development that will take place in North Oakville as well as infill development in the existing areas of the Town. The Plans recognize the need to co-ordinate growth with the delivery of public services and infrastructure.

ACTIONS 2006 • The Preliminary Directions report outlining the key revisions to the Official Plan will be completed. Issues to be addressed include growth management, infill and intensification, and policies for natural areas. • Planning for North Oakville moved to the OMB in 2005 when North Oakville Management Inc. (NOMI) developed their own version of a secondary plan and appealed it to the Ontario Municipal Board. Hearings will begin in August 2006. • Staff training in new urbanism will commence in anticipation of the processing of development applications in the North Oakville area following the outcome of the OMB hearing.

Full Community Life The development and management of parks, recreation and cultural facilities are key priorities for the residents of Oakville. In 2005, the Town drafted a Parks, Recreation, Culture and Library (PRCL) Master Plan, which provides a strategic foundation for the future delivery of parks, recreation, library and cultural facilities and programs. Research indicates that residents want Town facilities to be multi-use and multigenerational – including fitness, recreation, and sports activities, as well as having dedicated space for youth and seniors. Oakville residents value arts and culture as well as recreational team sports such as swimming and soccer.

TOWN OF OAKVILLE ANNUAL REPORT 2005

Ahead • The Glen Abbey Community Centre expansion project will be completed including an expanded library and a second ice pad.

• Gas tax revenues from the provincial and federal governments will help reduce the funding gap needed to maintain the Town’s roads, bridges and other transportation infrastructure, as well as to make strides to improve transit service levels.

• The draft Parks, Recreation, Culture and Library Master Plan will be provided to residents and Council.

• The Cycleways Master Plan, which looks at cycling as viable travel option, will be updated.

• A functional design study for QE Park will determine the requirements necessary for the development of a new community centre on the existing property as recommended in the Parks, Recreation, Culture and Library Master Plan.

Healthy Environment

ACTIONS 2006

• A heritage site plan will be developed for Erchless Estate to ensure the buildings and surrounding property are maintained and preserved in a manner that is consistent with the estate’s historical origin (circa 1900).

Transportation Improvements The Town is expected to grow to over 230,000 by 2021. The Town’s Transportation Master Plan (TMP) will deliver a longterm strategy to effectively and efficiently accommodate this growth. The TMP focuses on transit as a realistic alternative to the personal automobile by looking at ways to improve current bus service, enhancing GO train service, and investigating Bus Rapid Transit (BRT). The TMP creates new links in the trail system to make walking and cycling a potential alternative to vehicle use.

ACTIONS 2006 • Transit will confirm its participation in the GTA Farecard project. Scheduled for implementation between 2007 and 2010, the fare card will replace tickets and passes with a single hightech fare system for all public transit agencies in the GTA, including GO Transit.

Committed to practicing and promoting environmental stewardship, the Town’s Environmental Strategic Plan (ESP) outlines initiatives to protect and improve Oakville’s environment. The ESP recognizes and aims to sustain and enhance our natural resources, as well as educate and engage the community in protecting the environment.

ACTIONS 2006 • The ESP Implementation Advisory Committee, a group of citizen representatives, will act as champions of the ESP and support actions recommended within the plan.

Did you know… • Oakville offers an excellent environment for both new and expanding businesses. Over 300 companies have located either their national or international headquarters in Oakville. • Oakville’s population grew by 3,000 people from 2004 to 2005. By 2021, it is expected to increase to approximately 231,800. • The Town of Oakville hosted the 2005 Ontario Lifeguard Championships at Iroquois Ridge Community Centre in July drawing over 200 lifeguards from across the province. • The Oakville Centre for the Performing Arts enjoyed recordbreaking sales in 2005 with nearly $2 million in box office sales. That’s a 90 percent increase over 2004.

• The Yellow Fish Road program will remind the community that materials entering the storm drain affect local water sources and aquatic life. • Idle Free Zone signs will be provided to schools and other agencies to encourage drivers to turn off their engines while parked. • Public transit campaigns will be launched in 2006 including the Free Youth Summer Bus Pass for kids 14 years of age and under. • The Town’s Naturally Green program will continue to encourage residents and businesses to reduce their use of pesticides. The Town supports residents sensitive to pesticides by sending Naturally Green information to nearby homes and businesses.

Organizational Chart COUNCIL

Oakville was

CAO /TOWN MANAGER

awarded the Government Finance Officers

M. Joann Chechalk

Human Resources

Communications and Public Relations

Strategic Planning Audit and Risk Management Environmental Policy

Association (GFOA) – Canadian Award for Financial Reporting (CanFR) for the eighth consecutive year.

Community Services

Corporate Services

Planning and Development

Infrastructure Services

Domenic Lunardo Commissioner

Linda Reed* Commissioner

David Cash Commissioner

Ray Green Commissioner

Capital Assets and Facilities Management

Clerk’s

Building Services

Roads and Works

Information Technology

Planning Services

Parks and Open Spaces

Fire Services

Legal Recreation and Culture Services

Finance

Development Services

Engineering and Construction Transit Services

The CAO/Town Manager’s Office ensures that Town services and programs are aligned with Council-approved policies and strategic directions. The Community Services Commission is responsible for the management of Town-owned facilities, fire protection and prevention, emergency management and the delivery of recreation and cultural services. The commission also provides a corporate link to the Oakville Library, Oakville Galleries and TOWARF (Town of Oakville Water and Air Rescue Force). The Corporate Services Commission provides support services to ensure fiscal responsibility, records management, compliance with legislation and regulations, appropriate legal and real estate services and advice, council support, and information technology services, to support the Town’s operating departments. The Planning and Development Commission is responsible for the delivery and coordination of planning and building services, such as processing of development applications, planning policy, site development review, building plans examination, permit issuance and related inspections for compliance. The Infrastructure Services Commission manages programs and services related to the Town’s infrastructure, including road and storm drainage, traffic control devices and systems, parks, forestry, harbours and cemeteries. It is also responsible for the provision of public transit. * resigned December 2005

TOWN OF OAKVILLE ANNUAL REPORT 2005

As of December 2005

Treasurer’s Report Consolidated Statement of Financial Position The year 2005 resulted in an improved municipal position ($171.5 million), largely due to an increase of $7.1 million in the Town’s equity in Oakville Hydro. Financial assets increased by $23.1 million ($307.3 million) over 2004 ($284.2 million), primarily due to an increase in cash and short term investments as well as the Town’s investment in Oakville Hydro. Physical Assets, which represent the inventory on hand at yearend, increased slightly. Net Assets determine to what extent the Corporation can cover all its outstanding liabilities. For 2005, the net assets total $171.5 million, an increase of $6.8 million over 2004, indicating the Town is in a solid financial position at year-end.

am pleased to present the Town of Oakville’s 2005 Consolidated Financial Statements. The statements have been prepared in accordance with local government accounting standards established by the Public Sector Accounting Board (“PSAB”) of the Canadian Institute of Chartered Accountants. The Town’s external auditors, Deloitte & Touche LLP in accordance with Canadian Generally Accepted Auditing Standards, have audited the statements and have expressed an unqualified opinion that these statements present fairly the financial position of the Town at December 31, 2005. These financial statements include the consolidated statement of financial position, the related consolidated statements of financial activities and changes in financial position. The notes to the Financial Statements provide supporting information and details of the reserves and reserve funds, operating fund and capital fund balances for the 2005 fiscal year. The statements indicate how the Town financed its activities, and confirm that resources obtained were used in accordance with the Town’s approved operating and capital budgets.

At December 31, 2005, the Town’s liabilities totaled $137.0 million, an increase of $16.3 million over 2004 ($120.7 million). The increase occurred largely in Deferred Revenue – obligatory reserve funds, which primarily represent Development Charge revenues received for infrastructure not yet constructed. The consolidated municipal position reports the year-end surplus or deficit for all Town funds (Operating, Capital and Reserve), its local boards and the Town’s equity in Oakville Hydro (Government Business Enterprise). The Town’s Operating Fund surplus for 2005 was $500,000, which was carried forward to 2006, in accordance with Town policy. The Business Improvement Areas contributed $138,000 towards the final year-end surplus, and these funds will be used to finance a portion of their 2006 activities. In 2005, the Region of Halton, on behalf of the Town, issued long-term debt totaling $3.6 million, which was offset by repayments of existing debt of $3.6 million. The Town’s annual debt repayments of 3.7% are well within Council’s policy of limiting debt payments to 6.25% of operating revenues. Overall, the accumulated fund balance, including Oakville Hydro, was $207.2 million, an increase of $7.8 million over 2004.

TOWN OF OAKVILLE ANNUAL REPORT 2005

Consolidated Statement of Financial Activities This statement presents the consolidated operating results the Town Oakville, and its local boards (Oakville Public Library, Oakville Galleries, and Business Improvements Areas). The statement also provides a comparison of actual operating results to approved budgets. For 2005, the net revenues (revenues less expenditures) amounted to $6.8 million including the change in equity in Oakville Hydro. Net Revenues is a key performance indicator because it measures the extent to which revenues raised during the period met or exceeded expenditures. Revenues exceeded the budget expectation due to supplementary taxation, investment income, and senior orders of government grants.

Capital expenditures were less than anticipated, partly due to a delay in the initiation of some planned capital works.

Capital Fund: Revenues Developer Cont. 35% Taxation 20% Other 14% OSEIFA Funding 9% Reserves/Reserve Funds 22%

Capital Fund: Expenditures

Transportation 40%

Operating Fund: Revenues Protection 5%

Taxation 66%

General Government/ Other 15%

Other 5%

Recreation & Culture 40%

Investment Income 6% User Fees 23%

Expenditures in the Operating Fund also exceeded budget expectations and 2004 levels, particularly in General Government and Transportation Services. These increased expenditures were more than offset by increased revenues.

The statement also presents the change in the consolidated fund balances for 2005 – $7.8 million (2004 – $(3.1) million), with the most significant change occurring in the Town’s equity in Oakville Hydro.

Operating Fund: Expenditures Transportation 27% Protection 21% Planning/Development 6% General Government/ Other 20% Recreation & Culture 26%

TOWN OF OAKVILLE ANNUAL REPORT 2005

TREASURER’S REPORT

The Reserves and Reserve Funds balance of $39.0 million is comprised of reserves totaling $28.0 million and reserve funds of $11.0 million. Council has set these monies aside to provide funding for future capital requirements, to offset annual operating expenses, or to fund emergency situations. These funds also allow the Town the flexibility to take advantage of any Provincial /Federal/private initiatives, that in the long run enable us to improve our infrastructure and/or service levels while avoiding significant tax rate increases.

Reserves and Reserve Funds Reserve Funds

Reserves

Millions

30 25 20 15

2000

2002

2003

2004

11,051,000

27,960,000

7,594,000

28,562,000

8,471,000

24,816,000

9,851,000

21,959,000

9,416,000

19,629,000

2005

Municipal Performance Measures Program Provincial guidelines mandate that performance measures be reported to the Province by May 31, 2005 and to the public by August 31, 2005. The Town will notify the public through the Oakville Beaver and Oakville Today that the 2005 performance measures can be viewed on Oakville’s web site.

Conclusion The Town of Oakville is in a solid financial position, despite the significant pressure placed on its financial resources to provide new/enhanced infrastructure and services, as well as the need to maintain existing assets in a state of good repair. This has been achieved, while maintaining competitive tax rates and user fees, as well as a high degree of citizen satisfaction. The Town continues to lobby other levels of government to increase our non-tax base revenues, such as a long-term commitment to the sharing of the Federal and Provincial Gas Tax, and changes to the Development Charge Act. These long-term funding sources are integral to our ability to maintain our solid financial position and the services provided to the residents of Oakville. Combined with the financial policies and practices of the Town, this will ensure that Oakville taxpayers continue to be well served today and in the future. I would like to thank all those who contributed to a successful year in 2005. Town Council, Commissioners, Department heads and staff in all Town Departments all contributed to the Town’s achievements. Special thanks to the staff of the Finance Department who continue to demonstrate a high level of dedication and professionalism. Sincerely,

Patricia Elliott-Spencer, MBA, CMA Director, Finance & Treasurer The Corporation of the Town of Oakville Dated: June 5, 2006

TOWN OF OAKVILLE ANNUAL REPORT 2005

Comprehensive Financial Management & Planning Policies

he management of the Corporation of the Town of Oakville is responsible for the integrity, objectivity and accuracy of the financial information presented in our Financial Statements. In order to meet its responsibility for presenting accurate information, management maintains comprehensive financial and internal control systems. These systems are designed to ensure the safeguarding of assets and the integrity of the financial data. The control systems provide an organizational structure, which effectively segregates responsibility, employs highly qualified professional staff, and develops corporate policies and procedures, which are continuously reviewed.

Financial Management The Town of Oakville prepares its financial information in accordance with the generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants, and prescribed policies and requirements as issued by the Ministry of Municipal Affairs and Housing. The Town’s sources of financing and expenditures are recorded using the accrual basis of accounting. This basis recognizes revenues as they become available and measurable and expenditures as they are incurred and measurable as the result of receipt of goods or services and the creation of a legal obligation to pay. This is also the basis for developing the Town’s budget. In municipal financial operations, monies raised or supplied for one purpose cannot be used for any other purpose. Legal restrictions and contractual agreements prevent it from being used or diverted to any other use. Fund accounting shows that the money has been used for its intended purpose. The funds used by the Town of Oakville are the Operating Fund, Capital Fund, Reserve Funds and Trust Funds. Another element of financial management is to ensure the financial stability of the Corporation. By looking forward and preparing for future needs, the Town is able to deal with legislative changes, the impact of growth, and changes in the economic climate without significantly impacting the tax rate.

Financial Policies The following financial policies establish the framework for the Town of Oakville’s overall fiscal planning and management. The success of the Town’s budget process rests on a solid foundation of budget principles. These principles may be summarized as follows:

Sustainability The annual budget incorporates a long-term perspective and should be affordable today and in the future. The Town’s budget shall be in compliance with the Municipal Act and thus must be balanced and shall not plan for a deficit. The use of one-time revenues shall not be incorporated into the Town’s base budget and revenue diversification should be maximized.

Interdependency The operating and capital budgets must be reviewed with a coordinated effort. It must be recognized that capital expenditures, financing decisions and strategies will impact on future operating budgets.

Affordability The assumption of new assets and infrastructure and the replacement of existing assets will be well planned, and appropriate financing strategies and means will be utilized to minimize the financial impact and ensure that the tax rate is maintained at manageable levels. Growth related infrastructure is funded primarily through development charges in accordance with the Development Charges Act. Funding for non-growth infrastructure is funded through tax revenues. The Town prepares multiyear operating and 10 year capital forecasts to evaluate the Towns ability to afford new programs; service levels changes and new facilities.

Fee for Service The Town will ensure that user fees will be utilized to cover costs of appropriate services and are subject to annual review.

Management Principles The Town will maximize program efficiencies while maintaining program effectiveness. The annual budget will focus on results and out-

TOWN OF OAKVILLE ANNUAL REPORT 2005

COMPREHENSIVE FINANCIAL MANAGEMENT & PLANNING POLICIES

comes. The safeguarding of the Town’s assets and resources shall be a key management objective. Town management and staff review the numerous programs provided by all departments in order to ensure community needs are being met.

Operating Budget Controls The Town has adopted various policies that allow departments to effectively manage programs and services for which they are accountable. These policies establish a hierarchy of authority for adjusting between budget appropriations. The general accountabilities and allowable adjustments are as follows: • Departmental services approved by Council are carried out within the department’s net expenditure approvals, and that deviations from this policy are reported to and reviewed by the CAO/Town Manager or Council, as set out herein. • Directors/Commissioners are accountable to the Treasurer, the CAO/Town Manager and Council for their spending, revenue generation and service delivery performance against budget approvals. • Revenues that are received beyond the level provided for in the budget shall not be spent or committed without Council approval. At year-end, such remaining revenues become part of the Town surplus. • Reallocations between object codes that do not affect the net operating budget of a specific program may be made by a Director and will be implemented on an expenditure basis only. • The transfer of approved budgets of not more than $50,000 in respect of each reallocation between programs within a department that do not affect the net operating budget for the Department shall require the approval of the Commissioner, if applicable, the Treasurer and the CAO/Town Manager. Any such reallocation shall be reported as part of the quarterly variance report. Reallocation of approved budgets in excess of $50,000 requires Council approval.

• The transfer of approved budgets between programs and/or services affecting the net operating budget for a department shall require the approval of the Treasurer and the Chief Administrative Officer prior to being made and the subsequent approval of Council.

Capital Budget Controls The following points highlight the capital budget control process: • Council, in adopting the Capital Budget, shall determine the sums required for each Capital Project listed in the Capital Budget. The Treasurer shall certify that funding for the Capital Projects in the Capital Budget is within the Town’s updated financial obligation limit in relation to allowable Provincial levels. • All Capital Budgets and departmental reports to Council seeking authority for the release of funds and commencement of the capital project or amendments to the capital program must first be approved by the Treasurer to ensure accuracy, financing sources and financial impact, and then reviewed by the Chief Administrative Officer before being submitted to Council for approval. • Any capital project approved in a previous year for which a cash flow forecast is not updated, as part of the current year’s capital budget submission that project will be deemed to be completed. This review shall form part of the annual Capital Budget process, confirmation of the closure is subject to CAO approval. • Similar to the operating budget, there is a hierarchy of controls detailing how project budgets may be amended.

Debt Management Council has adopted a policy that ensures the debt level is significantly below the allowable Provincial Government authorized level. The Council approved guideline ensures debt payments do not exceed 6.25% of revenues, this compares very favourably to the allowable Provincial limit of 25%. The Town has a relatively low total debt burden in comparison to the provincial standard.

TOWN OF OAKVILLE ANNUAL REPORT 2005

Consolidated Financial Statements December 31, 2005

Auditorsâ&#x20AC;&#x2122; Report To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Town of Oakville

We have audited the consolidated statement of financial position of The Corporation of the Town of Oakville as at December 31, 2005 and the consolidated statements of financial activities and changes in financial position for the year then ended. These financial statements are the responsibility of the Townâ&#x20AC;&#x2122;s management. 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 plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Town as at December 31, 2005 and the results of its operations and changes in its financial position for the year then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountants Toronto, Ontario June 5, 2006

TOWN OF OAKVILLE ANNUAL REPORT 2005

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

Consolidated Statement of Financial Position December 31, 2005

F I N A N C I A L A S S E T S (in

thousands)

Cash and short-term investments (Note 3) Taxes receivable (Note 4(a)) Accounts receivable Investment in Oakville Hydro Corporation (Note 5)

L I A B I L I T I E S (in

2005

2 0 0 4*

$125,144 15,212 8,496 158,463 307,315

$106,324 14,552 11,429 151,905 284,210

16,416 10,552 10,792 1,359 59,132 14,758 23,965 136,974 170,341 1,190 $171,531

16,022 6,771 9,819 1,202 49,999 12,869 24,009 120,691 163,519 1,175 $164,694

$ 638 6,847 39,011 160,702 207,198 35,667 $171,531

$ 638 9,039 36,156 153,617 199,450 34,754 $164,696

thousands)

Accounts payable and accrued liabilities (Note 6) Other current liabilities Post employment benefit liability (Note 7(a)) WSIB liability (Note 7(b)) Deferred revenue – obligatory reserve funds (Note 8) Deferred revenue (Note 9) Long-term liabilities (Note 10) NET FINANCIAL ASSETS NON-FINANCIAL ASSETS – Prepaid expenses and inventory NET ASSETS

M U N I C I P A L P O S I T I O N (in

thousands)

FUND BALANCES (Note 12) Operating Fund – Schedule 1 Capital Fund – Schedule 2 Reserves and Reserve Funds – Schedule 3 Equity in Oakville Hydro Corporation (Note 5 (c)) AMOUNTS TO BE RECOVERED (Note 11) MUNICIPAL POSITION *Restated – Note 5 (d)

TOWN OF OAKVILLE ANNUAL REPORT 2005

Consolidated Statement of Financial Activities December 31, 2005

R E V E N U E S (in

thousands)

2005 Budget

2005 Actual

2 0 0 4* Actual

(Note 18)

Taxation – all classes (Note 1(a)(iii)) Less amounts received for Region and School Boards (Note 2) Oakville Hydro – interest on promissory notes and leases User fees and charges (Note 13) Grants Government of Canada Province of Ontario Investment income Penalties and interest Developer contributions and development charges earned Other TOTAL REVENUES

E X P E N D I T U R E S (in

$302,586 213,862 88,724 5,392 31,468

$289,008 205,252 83,756 6,091 29,525

271 2,959 2,894 2,230 17,205 1,125 147,472

266 4,210 3,680 2,585 15,353 5,210 156,888

316 2,091 2,925 2,167 15,360 4,117 146,348

17,486 23,938 27,575 548 687 58 28,394 6,587 105,273

20,744 23,973 30,649 588 841 39 28,836 6,846 112,516

17,098 21,969 27,767 466 755 47 26,313 5,389 99,804

7,905 2,902 24,411 735 45 11,249 2,018 49,265

4,435 2,432 18,049 1,011 130 17,629 949 44,635

4,148 3,267 22,463 1,089 61 9,716 4,102 44,846

154,538 – (7,066)

157,151 7,085 6,822

144,650 (9,870) (8,172)

4,008 –

3,584 1,130

7,725 7

(6,004) (243) (2,239) – $(9,305)

(3,629) (172) 913 15 $7,750

(2,642) (169) 4,921 112 $(3,139)

t h o u s a n d s ) (Note 17)

OPERATING General government Protection to persons and property Transportation services Environmental services Health services Social and family services Recreation and cultural services Planning and development CAPITAL General government Protection to persons and property Transportation services Environmental services Health services Recreation and cultural services Planning and development TOTAL EXPENDITURES CHANGE IN EQUITY – OAKVILLE HYDRO CORPORATION (Note 5(c)) NET REVENUES (EXPENDITURES) ADD Proceeds from long-term debt Increase in post employment benefits and WSIB liabilities LESS Debt principal repayments Repayment of internal loans INCREASE (DECREASE) IN AMOUNTS TO BE RECOVERED INCREASE IN NON-FINANCIAL ASSETS CHANGE IN FUND BALANCES *Restated – Note 5 (d)

$294,550 208,714 85,836 5,200 29,752

TOWN OF OAKVILLE ANNUAL REPORT 2005

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

Consolidated Statement of Changes in Financial Position December 31, 2005

NET INFLOW (OUTFLOW) OF CASH AND SHORT-TERM INVESTMENTS RELATED TO THE FOLLOWING ACTIVITIES ( i n t h o u s a n d s ) 2005

OPERATING Net revenues (expenditures) Change in equity in Oakville Hydro Corporation Uses: Increase in taxes receivable Increase in accounts receivable Decrease in deferred revenue Sources: Decrease in taxes receivable Decrease in accounts receivable Increase in accounts payable and accrued liabilities Increase in other current liabilities Increase in post employment benefit liability Increase in WSIB liability Increase in deferred revenue – obligatory reserve funds Increase in deferred revenue Net increase in cash from operations INVESTING Decrease in direct financing lease receivable from Oakville Hydro Corporation FINANCING Proceeds from long-term debt Debt principal repayment NET CHANGE IN CASH AND SHORT-TERM INVESTMENTS CASH AND SHORT-TERM INVESTMENTS, BEGINNING OF YEAR CASH AND SHORT-TERM INVESTMENTS, END OF YEAR

2 0 0 4*

$6,822 7,085 $(263)

$(8,172) (9,870) $1,698

(660) – – (660)

– (5,584) (13) (5,597)

– 2,933 394 3,780 973 157 9,133 1,889 $19,259 18,336

2,868 – 1,625 972 512 195 5,242 – $11,414 7,515

529

502

3,584 (3,629) (45) 18,820 106,324 $125,144

7,725 (2,642) 5,083 13,100 93,224 $106,324

*Restated – Note 5 (d)

TOWN OF OAKVILLE ANNUAL REPORT 2005

Notes to the Consolidated Financial Statements 1. Significant Accounting Policies The consolidated financial statements of the Corporation of the Town of Oakville (the “Town”) are the representations of management prepared in accordance with local government accounting standards established by the Public Sector Accounting Board (“PSAB”) of the Canadian Institute of Chartered Accountants. Significant accounting policies adopted include: (a) (i) Reporting entity These consolidated financial statements reflect the assets, liabilities, revenues, expenditures and fund balances of the reporting entity. The reporting entity is comprised of all organizations, local boards and committees of Council which are controlled by the Town (except for the Oakville Hydro Corporation), including the following: • The Oakville Public Library Board • Downtown Oakville Business Improvement Area • Bronte Business Improvement Area • Oakville Galleries All material inter-entity transactions and balances, except for those between the Town and the Oakville Hydro Corporation, are eliminated on consolidation. (ii) Investment in Oakville Hydro Corporation The Town’s investment in Oakville Hydro Corporation is accounted for on a modified equity basis, consistent with generally accepted accounting principles as recommended by PSAB for investments in government business enterprises. Under the modified equity basis, Oakville Hydro Corporation’s accounting policies are not adjusted to conform with those of the municipality and inter-organizational transactions and balances are not eliminated. The Town recognizes its equity interest in the annual income or loss of Oakville Hydro Corporation in its consolidated statement of financial activities with a corresponding increase or decrease in its investment asset account. Any dividends that the Town may receive from Oakville Hydro Corporation will be reflected as reductions in the investment asset account. (iii) Accounting for region and school board transactions The taxation, other revenues, expenditures, assets and liabilities with respect to the operations of the school boards and the Region of Halton are not reflected in the municipal fund balances of these financial statements. (iv) Trust funds Trust funds and their related operations administered by the municipality are not consolidated, but are reported separately in the Trust Funds Statement of Financial Position and Financial Activities. (b) Basis of accounting (i) Revenues and expenditures Revenues and expenditures are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues, as they are earned and measurable; expenditures are recognized, as they are incurred and measurable as a result of the receipt of goods or services and the creation of a legal obligation to pay. (ii) Tangible capital assets Tangible capital asset expenditures incurred during the year are recorded as capital expenditures in the statement of financial activities. (iii) Accounting for Property Tax Phase-in and Bill 140 Capping Provisions resulting from the Ontario Fair Assessment System The net impact in property taxes as a result of the application of phase-in and capping provisions does not affect the consolidated statement of financial activities as the full amount of the property taxes is levied.

TOWN OF OAKVILLE ANNUAL REPORT 2005

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

1. Significant Accounting Policies

(continued)

(iv) Deferred revenue – obligatory reserve funds Deferred revenue – obligatory reserve funds represents development charge contributions, payments in lieu of parkland and parking, and gas tax, levied under the authority of provincial legislation and Town by-laws. These amounts have been collected but the related services have yet to be performed. These amounts will be recognized as revenue in the fiscal year the services are performed. (v) Deferred revenue Deferred revenue represents user charges and other fees, which have been collected, for which the related services have yet to be performed. These amounts will be recognized as revenue in the fiscal year the services are performed. (vi) Net investment in direct financing leases receivable Investment income related to the municipality’s net investment in direct financing leases is recognized in a manner that produces a constant rate of return on the investment. The investment in the leases is composed of net minimum remaining lease payments and unearned investment income. (vii) Post employment benefits The present value of the cost of providing employees with future benefits programs is recognized as employees earn these entitlements through service. (viii) Government transfers Government transfers are recognized in the financial statements in the period in which the events giving rise to the transfer occur, eligibility criteria are met, and reasonable estimates of the amount can be made. (ix) Use of estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Due to the inherent uncertainty in making estimates, actual results could differ from those estimates.

2. Operations of School Boards and The Region of Halton Further to Note 1(a)(iii), the taxation and other revenues of the school boards and the Region of Halton are comprised of the following:

2005 School Boards

2005 Region

2005 Total

2004 Total

$104,051 195 $104,246

$108,189 1,427 $109,616

$212,240 1,622 $213,862

$203,704 1,548 $205,252

Taxation and user charges Grants-in-lieu TOTAL

3. Cash and Short-term Investments This represents a consolidation of cash and short-term investments from the operating fund, local boards and the reserve funds (including those funds set aside in respect of deferred revenue – obligatory reserve funds as detailed in Note 8). The composition is as follows:

2005 Cash Operating Fund Reserve Funds TOTAL

$3,671 11,692 $15,363

2005 Short-term Investments $67,919 41,862 $109,781

2005 Total

2004 Cash

2004 Short-term Investments

$71,590 53,554 $125,144

$4,735 9,831 $14,566

$64,024 27,734 $91,758

2004 Total $68,759 37,565 $106,324

Investments, which are reported at cost, have a market value of $110,366,358 (2004 – $94,451,669) at the end of the year.

TOWN OF OAKVILLE ANNUAL REPORT 2005

4. Receivables (a) Taxes receivable

Current year Arrears previous years Less allowance

2005 $11,054 5,228 16,282 1,070 $15,212

2004 $10,164 5,416 15,580 1,028 $14,552

The allowance of $1,069,630 has been established to cover the Town’s share of vacancy rebates for 2005 and potential adjustments from unresolved assessment appeals. (b) Interfund receivables As a means of funding the acquisition of computer hardware and software, funds are borrowed by the Operating Fund from Reserve Funds. These funds are secured by a promissory note and repaid over a predetermined period of time. The financing arrangements and ultimate repayment are approved by Council through the current budget process. For the purposes of these financial statements, both the financing and repayment are reflected as interfund transfers and therefore eliminated during consolidation. The following is the current status of all such loans outstanding:

Financing of computer software, hardware and equipment, repayable in semi-annual principal and interest payments of $149,408; bearing interest at 4.0% and maturing on December 31, 2005

2005

2004

–

$290

5. Investment in Oakville Hydro Corporation In recognition of the requirements of Bill 35 (the Energy Competition Act, 1998) the Town of Oakville on January 24, 2000 passed a transfer by-law that transferred, at fair value, all of the assets and liabilities of the Oakville Hydro-Electric Commission, effective February 1, 2000, to four newly created corporations owned by the Town of Oakville. These four corporations, Oakville Hydro Corporation and its wholly-owned subsidiaries, Oakville Hydro Electricity Distribution Inc., Oakville Hydro Energy Services Inc., and Oakville Hydro Communications Inc., have carried on the former businesses of the Commission with all its rights, duties, obligations and responsibilities from the date of transfer. The Town of Oakville is the sole shareholder of Oakville Hydro Corporation. Oakville Hydro Corporation is wholly-owned and controlled by the Town of Oakville and as a government business enterprise is accounted for on the modified equity basis in these financial statements. Oakville Hydro serves as the electrical distribution utility for Oakville’s residents. Other activities of Oakville Hydro, and its subsidiaries, are to provide fibre optic services, energy services, water heater rental, billing services, meter services and street lighting services.

TOWN OF OAKVILLE ANNUAL REPORT 2005

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

5. Investment in Oakville Hydro Corporation

(continued)

The following table provides condensed supplementary consolidated financial information for the Corporation and its subsidiaries for the year ended December 31:

FINANCIAL POSITION ASSETS Current Capital Other TOTAL ASSETS LIABILITIES Current Capital lease obligations to Town of Oakville Promissory notes payable to Town of Oakville Other TOTAL LIABILITIES EQUITY Share capital Retained earnings TOTAL EQUITY TOTAL LIABILITIES AND EQUITY

2005

2 0 0 4*

$80,845 99,992 19,469 $200,306

$76,076 95,696 18,924 $190,696

$32,504 11,618 77,029 9,339 $130,490

$26,797 12,147 77,029 11,994 $127,967

63,024 6,792 $69,816 $200,306

63,024 (295) $62,729 $190,696

*Restated – Note 5 (d)

FINANCIAL ACTIVITIES Revenue Expenses (including/net of income tax expense/recovery) CHANGE IN RETAINED EARNINGS Adjustment to shareholder’s equity Restatement (Note 5 (d)) CHANGE IN EQUITY TOWN OF OAKVILLE’S INVESTMENT REPRESENTED BY: • Direct financing leases receivable (Note 5 (a)) • Promissory notes receivable (Note 5 (b)) • Investment in shares of the Corporation • Accumulated net income and adjustment for future income taxes TOTAL INVESTMENT

2005 $165,175 158,088 7,087 – $7,087 $11,618 77,029 63,024 6,792 $158,463

2 0 0 4* $147,201 143,928 3,273 (13,143) ($9,870) $12,147 77,029 63,024 (295) $151,905

*Restated – Note 5 (d)

(a) Net investment in direct financing receivable The Town has provided direct financing leases to Oakville Hydro Corporation for the property known municipality as 861 Redwood Square, and a vehicle fleet. Minimum payments under the leases commenced in 2001 and are as follows for the years ending:

2006 2007 2008 2009 2010 2011-2019 Less amount representing interest, imputed at 7%

$1,353 1,325 1,319 1,240 1,152 12,057 18,446 6,828 $11,618

TOWN OF OAKVILLE ANNUAL REPORT 2005

5. Investment in Oakville Hydro Corporation

(continued)

(b) Promissory notes receivable Oakville Hydro Corporation issued promissory notes to the Town of Oakville, effective February 1, 2000, with principal repayment due on February 1, 2020. Interest is payable at various rates from 0% to 7% during the initial two year term of the notes and 6.45% to 7% throughout the balance of the term of the notes. Interest revenue earned from these notes totalled $5,392,038 (2004 – $5,222,172). (c) Equity in Oakville Hydro Corporation

2005

2004

BALANCE, BEGINNING OF YEAR Changes during the year: • Net income for the year • Restatement of opening balance (Note 5 (d))

$153,617

$163,487

7,085 – 7,085 $160,702

3,273 (13,143) (9,870) $153,617

BALANCE, END OF YEAR

(d) Restatement of Prior Year’s Figures The financial statements of Oakville Hydro Corporation have been restated to record capital assets that were transferred from the Corporation of the Town of Oakville on February 1, 2000 back to the original carrying value of the predecessor Commission. The effect of the restatement is as follows:

INCREASE/(DECREASE): Capital assets Other assets (Future income taxes) Net income RETAINED EARNINGS, BEGINNING OF YEAR

2004 $(16,813) 4,888 (1,218) $(13,143)

(e) Related party transactions and balances The following summarizes the Town’s related party transactions and balances with Oakville Hydro Corporation for the year ended December 31, 2005.

TRANSACTIONS REVENUE Interest on capital leases Cashier services Tree trimming services Garage services Property taxes Donation of property Interest on promissory notes EXPENSES Energy purchases (at commercial rates) Fibre optic rental Streetlight maintenance

2005

2004

$833 4 189 466 311 715 5,392

$870 4 193 511 310 – 5,222

$2,715 60 397

$2,933 56 436

$128 11,618 77,029

$150 12,147 77,029

$692

$278

BALANCES AMOUNTS DUE FROM OAKVILLE HYDRO CORPORATION • Accounts receivable • Direct financing leases receivables • Promissory note receivable AMOUNTS DUE TO OAKVILLE HYDRO CORPORATION • Accounts payable and accrued liability

TOWN OF OAKVILLE ANNUAL REPORT 2005

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

6. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities include financial obligations to outside organizations and individuals as a result of transactions and events on or before the end of the accounting period. They are the result of invoices, contracts, agreements and legislation in force at the end of the accounting period that require the Town of Oakville to pay for goods and services acquired or provided on or before the accounting date. A breakdown is provided below:

2005 $10,796 2,828 1,281 1,511 $16,416

Trade accounts payable Payables to other governments Payroll liabilities Accrued liabilities

2004 $11,757 2,524 1,570 171 $16,022

7. Post Employment Benefit Liability (a) Post employment benefit liability Employee future benefits are comprised of health and dental benefits, as well as an accrual for one day earned per year of service payable at retirement. Dependent on eligibility, health and dental coverage may be a shared financial responsibility between the Town and the retired employee. All coverage ceases at age 65. The Town recognizes these post-retirement costs as they are earned during the employee’s tenure of service. The post employment benefits obligation at December 31, 2005 and the changes in the accrued benefit obligation for the 2005 fiscal year was determined by an actuarial valuation prepared as at December 31, 2005. The main actuarial assumptions employed in the valuation are as follows: (i) Inflation

Inflation was assumed to be 2.4% per year.

(ii) Discount rate

The present value as at December 31, 2005 of the future benefits obligation was determined using a discount rate of 5.25%.

(iii)Health and dental trend costs Health care trend costs are presumed to increase at 10% in 2006, reducing linearly to 3.5% in 2015. Dental care trend costs of 3.5% annual increases are presumed. Mortality based on 1983 Group Annuity Mortality Table Information about the Town’s benefit liabilities is as follows:

ACCRUED BENEFITS LIABILITY, BEGINNING OF YEAR Current service costs Prior period service costs – Plan amendment Interest on accrued benefits Amortization of actuarial (gain) losses Benefits paid during the period ACCRUED BENEFITS LIABILITY, END OF YEAR Post employment benefits obligation Unamortized actuarial (losses) gains POST EMPLOYMENT BENEFITS LIABILITY

2005 $9,819 464 197 614 (12) (290) $10,792 $11,014 (222) $10,792

2004 $9,307 387 (181) 581 (12) (263) $9,819 $9,622 197 $9,819

TOWN OF OAKVILLE ANNUAL REPORT 2005

7. Post Employment Benefit Liability

(continued)

(b) Workplace Safety and Insurance Obligations (WSIB) Effective January 1, 1994, the Corporation of the Town of Oakville became a Schedule II employer under the Workplace Safety & Insurance Act and follows a policy of self insurance for all its employees. An actuarial valuation was completed in 2005. The Town had maintained an insurance policy, which protected the Corporation against single claims in excess of $500,000, but that policy was not renewed beyond its expiry date in 2005. Information about the Town’s WSIB liability is as follows:

ACCRUED WSIB LIABILITY, BEGINNING OF YEAR Expense for the year Benefits paid during the year ACCRUED WSIB LIABILITY, END OF YEAR

2005 $1,202 416 (259) $1,359

2004 $1,007 456 (261) $1,202

Accrued WSIB obligation Unamortized actuarial losses ACCRUED WSIB LIABILITY, END OF YEAR

$1,417 (58) $1,359

$1,471 (269) $1,202

Management has provided the most current information available to the actuary for purposes of estimating the WSIB liability.

8. Deferred Revenue – Obligatory Reserve Funds Continuity of deferred revenue – obligatory reserve funds is as follows:

2005 Development Charges BALANCE, BEGINNING OF YEAR Developer and other contributions Interest earned Parking Less: Developer contributions used in capital operations BALANCE, END OF YEAR

2005 2005 2005 Parkland Gas Tax Parking

2005 Total

2004 Total

$40,685 18,355 811 – 19,166

$6,917 2,048 278 – 2,326

$273 2,230 18 – 2,248

$2,124 $49,999 7 22,640 100 1,207 235 235 342 24,082

$44,757 18,839 1,065 199 20,103

14,770 $45,081

179 $9,064

– $2,521

– 14,949 $2,466 $59,132

14,861 $49,999

9. Deferred Revenue Deferred revenues – operations Deferred revenues – capital Pre-authorized tax payments Deferred revenues – Library and Business Improvement Areas

TOWN OF OAKVILLE ANNUAL REPORT 2005

2005

2004

$4,486 3,807 6,440 25 $14,758

$3,083 3,884 5,887 15 $12,869

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

10. Long-term Liabilities (a) The balance of the long-term liabilities reported on the consolidated statement of financial position is comprised of the following:

2005

2004

$14,094

$16,284

The municipality has assumed responsibility for the payment of the principal and interest charges on certain long-term liabilities issued by Halton Region on behalf of the Town, under the Ontario Strategic Infrastructure Financing Authority (OSEIFA). Interest is at 2.43%. LONG-TERM LIABILITIES AT THE END OF THE YEAR

9,871

7,725

$23,965

$24,009

Principal repayments due over the next five years and thereafter are as follows:

2006 2007 2008 2009 2010 Thereafter

$3,384 3,195 3,338 3,489 3,269 7,290 $23,965

(b) The long-term liabilities in (a) issued in the name of the municipality have received approval of the Ontario Municipal Board (or approval by private legislation) for those approved on or before December 31, 1992. Those approved on or after January 1, 1993 have been approved by by-law. The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. (c)

Interest expense on long-term liabilities amounted to $1,159,654 (2004 – $1,073,157).

11. Amounts to be recovered Amounts to be recovered will be funded as follows:

FROM FUTURE REVENUE: • Long-term liabilities (Note 10(a)) • Internal loan from obligatory reserve fund bearing interest at 3% and maturing on December 31, 2006 • Post employment benefits and WSIB liability FROM RESERVE FUNDS: Post employment benefits and WSIB liability FROM INSURANCE PROCEEDS RELATING TO WSIB LIABILITY

2005

2004

$23,965

$24,009

250 6,419

424 5,539

5,033 – $35,667

4,560 222 $34,754

TOWN OF OAKVILLE ANNUAL REPORT 2005

12. Municipal Fund Balances at the end of the year (a) Operating fund balance

REDUCTION IN GENERAL AREA TAXATION Town Business improvement areas

2005

2004

$500 138 $638

$500 138 $668

2005

2004

$(2,055) (1,582) (17,718) 28,202 $6,847

$(6,567) (1,739) (6,430) 23,775 $9,039

2005

2004

$– 2,236 8,109 8,732 379 8,070 434 $27,960

$1,557 2,150 8,670 6,827 303 8,621 434 $28,562

5,033 1,541 – 229 430 6 130 3,682 11,051 $39,011

4,560 1,061 26 224 166 3 89 1,465 7,594 $36,156

(b) Capital fund balance

ACQUISITION OF TANGIBLE CAPITAL ASSETS TO BE: Recovered through reserves and reserve funds Financed from the proceeds of long-term liabilities Financed from third party recoveries and savings in other projects Funds available for the acquisition of tangible capital assets

RESERVES SET ASIDE FOR SPECIFIC PURPOSES BY COUNCIL FOR: Building maintenance reserve Tax rate stabilization Capital financing Acquisition of tangible capital assets Recreation and culture Working capital Insurance

RESERVE FUNDS SET ASIDE FOR SPECIFIC PURPOSES BY COUNCIL FOR: Post employment benefits and WSIB liability Street trees Lot levies and subdivider contributions Conservation purposes Harbours Other Library Development Building maintenance and replacement

The Operating Fund surplus for the Town of Oakville for the fiscal year ended December 31, 2005, available to be used to offset taxation or user fees in 2005, has been reduced by an amount of $1,274,932 (2004 – $4,389,334) which was transferred to the Reserves and Reserve Funds as authorized by Corporate Policy. Had this transfer not been made, the balance “reduction in general area taxation” for the Town in Note 12(a) would have shown a surplus of $1,774,932 (2004 – $4,889,334).

TOWN OF OAKVILLE ANNUAL REPORT 2005

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

13. User Fees and Charges User fees and charges includes the following:

Development fees and miscellaneous Other municipalities Transit revenues Parking, Provincial Offences Act and other fines Town facilities rental and usage fees Recreation and cultural program revenues Cemetery plot and burial revenues Licenses and permits

2005 $3,833 3,498 4,378 3,173 5,233 4,940 719 5,694 $31,468

2004 $4,685 2,222 3,692 3,274 3,508 5,383 577 6,184 $29,525

14. Trust Funds Trust funds administered by the municipality amounting to $2,721,131 (2004 â&#x20AC;&#x201C; $2,649,647) are not included in the Consolidated Statement of Financial Position nor have their operations been included in the Consolidated Statement of Financial Activities. In addition, the Community Foundation of Oakville holds certain funds on behalf of the Town of Oakville.

15. Pension Agreements The municipality makes contributions to Ontario Municipal Employees Retirement Fund (OMERS), a multi-employer plan, which as of December 31, 2005 was on behalf of 953 members of its staff. The amount contributed to OMERS for 2005 was $3,547,360 (2004 â&#x20AC;&#x201C; $3,137,471). 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.

16. Contingent Liabilities and Guarantees (a) Loan guarantees The Town of Oakville has one loan guarantee outstanding at the end of 2005, as follows:

Burloak Canoe Club

Original

December 31 2005

$75,000

$41,500

Safeguards have been put in place to protect the Town should default occur on the part of the club. (b) Oakville Hydro Corporation A class action claiming $500 million in restitutionary payments plus interest was served on November 18, 1998. The action was initiated against Toronto Hydro Electric Commission as the representative of the Defendant Class consisting of all municipal electric utilities in Ontario, which have charged late payment charges on overdue utility bills at any time after April 1, 1981. The claim is that payment penalties result in the municipal electric utilities receiving interest at effective rates in excess of that permitted under Section 347(1)(b) of the Criminal Code. The Electricity Distributors Association (formerly the Municipal Electric Association) is undertaking the defence of this class action. At this time it not possible to determine the effect, if any, on the financial position of Oakville Hydro Corporation, and therefore on that of the Town of Oakville. For this reason, no recognition of any potential liability has been given in these financial statements.

TOWN OF OAKVILLE ANNUAL REPORT 2005

16. Contingent Liabilities and Guarantees

(continued)

(c) Litigation (i) The development community has filed appeals to the Ontario Municipal Board (OMB) regarding the North Oakville Secondary Plan. The Town is currently defending its position and any related costs incurred up to December 31, 2005 are reflected in these financial statements. The balance of the costs associated with the OMB hearing will be reflected in subsequent yearsâ&#x20AC;&#x2122; financial statements, when incurred. (ii) The Town received the Ontario Municipal Board decision regarding the Pitblado expropriation hearing and related costs have been recorded in the current year. The Town is awaiting a decision with regard to legal costs. The outcome with respect to legal costs and other actions is not determinable as at the date of reporting and accordingly, no provision has been made in these financial statements for any liability which may result. (iii) The Town has been named as defendant in certain legal actions in which damages have been sought. The outcome of these actions is not determinable as at the date of reporting and accordingly, no provision has been made in these financial statements for any liability which may result. (d) Cemeteries Act The Cemeteries Act (Revised), R.S.O., 1990, requires the Town to assume ownership and responsibility for the continuing care of pioneer and abandoned cemeteries. However, the Cemeteries Act does not address the issue of funding for this obligation, other than provide that any assets, funds and trust accounts, if they exist, become the property of the municipality at the time the ownership is assumed. This potential liability cannot be quantified at this time and no provision has been included in these financial statements. (e) Guarantees In the normal course of business, the Town enters into agreements that meet the definition of a guarantee. (i) The Town, on occasion, has provided indemnities under lease agreements for the use of various operating facilities. Under the terms of these agreements the Town agrees to indemnify the counterparties for various items including, but not limited to, all liabilities, loss, suits, and damages arising during, on or after the term of the agreement. The maximum amount of any potential future payment cannot be reasonably estimated. (ii) The Town has purchased errors and omissions insurance to mitigate the costs of any potential future suits or actions. The term of the indemnification is not explicitly defined, but is limited to the period over which the indemnified party served as a trustee, director or officer of the Town. The maximum amount of any potential future payment cannot be reasonably estimated. (iii) In the normal course of business, the Town, on occasion, has entered into agreements that include indemnities in favour of third parties, such as purchase and sale agreements, confidentiality agreements, engagement letters with advisors and consultants, outsourcing agreements, leasing contracts, information technology agreements and service agreements. These indemnification agreements may require the Town to compensate counterparties for losses incurred by the counterparties as a result of breaches in representation and regulations or as a result of litigation claims or statutory sanctions that may be suffered by the counterparty as a consequence of the transaction. The terms of these indemnities are not explicitly defined and the maximum amount of any potential reimbursement cannot be reasonably estimated. The nature of these indemnification agreements prevents the Town from making a reasonable estimate of the maximum exposure due to the difficulties in assessing the amount of liability which stems from the unpredictability of future events and the unlimited coverage offered to counterparties. Historically, the Town has not made any significant payments under such or similar indemnification agreements and therefore no amount has been accrued in the statement of financial position with respect to these agreements.

TOWN OF OAKVILLE ANNUAL REPORT 2005

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

17. Classification of Expenditures by Object The Consolidated Statement of Financial Activities presents the expenditures by function; the following classifies those same expenditures by object:

Salaries, wages and employee benefits Operating materials and supplies Contracted services Rent and financial expenses External transfers to others Tangible capital assets Debt service TOTAL EXPENDITURES BY OBJECT

2005

2004

$73,098 13,340 22,859 409 1,650 44,635 1,160 $157,151

$66,985 12,000 17,595 626 1,525 44,846 1,073 $144,650

18. Budget Figures The approved operating and capital budgets for 2005 are reflected on the Consolidated Schedule of Operating Fund Financial Activities and Fund Balance, Consolidated Schedule of Capital Fund Financial Activities, Fund Balance and the Consolidated Statement of Financial Activities. The budgets established for the capital fund operations 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 the current year actual amounts. As well, the municipality does not have a budget for activity within Reserves and Reserve Funds, with the exception being those transactions, which flow through either the operating or capital budgets. Budget figures have been reclassified for the purposes of these financial statements to comply with PSAB reporting principles.

19. Comparative Figures Certain of the prior yearâ&#x20AC;&#x2122;s comparative figures have been restated as disclosed in note 5 (d) or reclassified to conform to the current yearâ&#x20AC;&#x2122;s presentation.

TOWN OF OAKVILLE ANNUAL REPORT 2005

Consolidated Schedule of Operating Fund Financial Activities and Fund Balance – Schedule 1 December 31, 2005

REVENUES (in thousands)

Taxation – all classes Less amounts received for Region and School Boards NET TAXATION FOR MUNICIPAL PURPOSES Oakville Hydro – interest on promissory notes and leases User fees and charges Grants: Government of Canada Province of Ontario Transfer from trust funds Sale of publications Investment income Penalties and interest TOTAL REVENUES

2005 Budget $294,550 208,714 85,836 5,200 29,752

2005 Actual $302,586 213,862 88,724 5,392 31,361

2004 Actual $289,008 205,252 83,756 6,091 29,380

271 1,784 97 25 2,894 2,230 128,089

266 3,269 200 107 3,234 2,585 135,138

316 778 193 145 2,567 2,167 125,393

17,486 23,938 27,575 548 687 58 28,394 6,587 105,273 $22,816

20,744 23,973 30,649 588 841 39 28,836 6,846 112,516 $22,622

17,098 21,969 27,767 466 755 47 26,313 5,389 99,804 $25,589

(6,004) (243) – – (9,597) (7,472) (23,316) (500) 500 $–

(3,629) (174) 15 1,130 (11,381) (8,583) (22,622) – 638 $638

(2,642) (169) 112 7 (13,703) (9,244) (25,639) (50) 688 $638

EXPENDITURES (in thousands)

General government Protection to persons and property Transportation services Environmental services Health services Social and family services Recreation and cultural services Planning and development TOTAL EXPENDITURES NET REVENUES

FINANCING AND TRANSFERS (in thousands)

Debt principal repayments Repayment of internal loans Increase in non-financial assets Increase in post employment benefit and WSIB liabilities Transfers to Reserves and Reserve Funds Transfer to Capital Fund NET FINANCING AND TRANSFERS CHANGE IN OPERATING FUND BALANCE FUND BALANCE, BEGINNING OF YEAR FUND BALANCE, END OF YEAR

TOWN OF OAKVILLE ANNUAL REPORT 2005

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

Consolidated Schedule of Capital Fund Financial Activities and Fund Balance – Schedule 2 December 31, 2005

REVENUES (in thousands)

Provincial Grants Developer charges earned Upper tier recoveries Other revenue and recoveries TOTAL REVENUES

2005 Budget $1,175 17,205 – 1,003 19,383

2005 Actual $941 14,818 2,523 2,487 20,769

2004 Actual $1,313 15,000 3,078 846 20,237

7,905 2,902 24,410 735 45 11,249 2,018 49,264 (29,881)

4,435 2,432 18,049 1,011 130 17,629 949 44,635 (23,866)

4,148 3,267 22,463 1,089 61 9,716 4,102 44,846 (24,609)

4,008 7,472 18,401 29,881 – – $–

3,584 8,583 9,507 21,674 (2,192) 9,039 $6,847

7,725 9,244 11,552 28,521 3,912 5,127 $9,039

EXPENDITURES (in thousands)

General government Protection to persons and property Transportation services Environmental services Health services Recreation and cultural services Planning and development TOTAL EXPENDITURES NET EXPENDITURES

FINANCING AND TRANSFERS (in thousands)

Proceeds on long-term debt Transfer from Operating Fund Transfer from Reserve and Reserve Funds NET FINANCING AND TRANSFERS CHANGE IN CAPITAL FUND BALANCE CAPITAL FUND BALANCE, BEGINNING OF YEAR CAPITAL FUND BALANCE, END OF YEAR

TOWN OF OAKVILLE ANNUAL REPORT 2005

Consolidated Schedule of Reserves and Reserve Funds Financial Activities and Fund Balance – Schedule 3 December 31, 2005

REVENUES (in thousands)

Developer contributions Investment income TOTAL REVENUES

2005 Budget

2005 Actual

2004 Actual

$– – –

$ 535 446 981

$360 358 718

(9,507) 11,381 1,874 2,855 36,156 $39,011

(11,552) 13,703 2,151 2,869 33,287 $36,156

NET TRANSFERS (TO) FROM OTHER FUNDS Capital Fund Operating Fund CHANGE IN RESERVES AND RESERVE FUND BALANCES RESERVES AND RESERVE FUNDS, BEGINNING OF YEAR RESERVES AND RESERVE FUNDS, END OF YEAR

TOWN OF OAKVILLE ANNUAL REPORT 2005

(18,401) 9,597 8,804 8,804 $(8,804)

Five Year Review

(Unaudited)

DEMOGRAPHICS (in thousands)

2005

2004

2003

2002

2001

158,700 58,734 864

155,700 57,328 855

152,400 55,226 817

148,200 53,336 785

146,300 51,408 773

143

643 1,661 3,315

634 1,626 3,297

671 1,705 3,265

655 1,665 3,220

640 1,660 3,168

1,638 $348 M $387 M

1,713 $374 M $544 M

1,976 $393 M $635 M

1,958 $374 M $574 M

1,308 $221 M $440 M

2005

2004

2003

2002

2001

18,224,859 2,077,921 860,526 73,844 21,237,150 13.84%

17,475,233 2,005,103 817,717 73,640 20,371,693 13.86%

14,530,815 1,807,251 739,454 75,087 17,152,607 14.85%

12,556,343 1,581,394 695,624 43,350 14,876,711 15.31%

12,100,785 1,507,305 711,593 44,948 14,364,631 15.45%

1,285,908

1,241,368

1,091,639

1,076,961

1,034,532

2005

2004

2003

2002

2001

87,218 109,394 106,139 302,751

82,379 103,569 102,893 288,841

71,808 95,467 98,527 265,802

65,911 90,308 96,113 252,332

59,607 87,003 95,164 241,774

Population at the end of the year (Est.) Number of Households Staff Complement – Approved Continuous Full-time (includes Library) Oakville’s Area in km2 Roads Network • Kilometres • Lane Kilometres Parkland in Acres Building Permits – Issued • New residential units • Total residential construction value • Total construction value – all types of permits

TA X A B L E A S S E S S M E N T (in thousands)

Residential, multi-residential and farm Commercial – all classes Industrial – all classes Pipeline & Managed Forests Commercial and industrial as a percentage of taxable assessment Exempt Assessment

P R O P E RT Y TA X B I L L I N G S (in thousands)

Town of Oakville Region of Halton School Boards (Public & Separate)

TOWN OF OAKVILLE ANNUAL REPORT 2005

P R O P E R T Y TA X AT I O N TA X R AT E S ( % )

2005

2004

2003

2002

2001

0.351490 0.445593 0.296000 1.093083

0.340556 0.432787 0.296000 1.069343

0.351898 0.474426 0.335000 1.161324

0.375161 0.521513 0.373000 1.269674

0.347545 0.512222 0.373000 1.232767

0.795035 1.007886 0.296000 2.098921

0.770304 0.978922 0.296000 2.045226

0.795958 1.073105 0.335000 2.204063

0.848578 1.179610 0.373000 2.401188

0.786112 1.158594 0.373000 2.317706

0.511945 0.649007 1.528601 2.689553

0.496020 0.630354 1.528601 2.654975

0.512539 0.691002 1.623239 2.826780

0.546423 0.759584 1.832099 3.138106

0.506199 0.746051 1.832099 3.084349

COMMERCIAL – VACANT UNITS, EXCESS LAND Percentage of Full Rate 70%

70%

0.829482 1.051555 2.118413 3.999450

0.803678 1.021334 2.118413 3.943425

0.830444 1.119598 2.314354 4.264396

0.885343 1.230718 2.803141 4.919202

0.354339 0.522236 1.282469 2.159044

INDUSTRIAL – VACANT UNITS, EXCESS LAND Percentage of Full Rate 65%

65%

FARMLAND AWAITING DEVELOPMENT Town of Oakville 0.000000 Region of Halton 0.000000 School Boards (Public and Separate) 0.000000 0.000000

0.000000 0.000000 0.000000 0.000000

0.121641 0.179278 0.130550 0.431469

0.373177 0.473086 1.412687 2.258950

0.361568 0.459490 1.412687 2.233745

0.373610 0.503698 1.385005 2.262313

0.398309 0.553691 1.459365 2.411365

0.368988 0.543825 1.4593650 2.372178

0.087873 0.111398 0.074000 0.273271

0.085139 0.108196 0.074000 0.267335

0.087974 0.118606 0.083750 0.290330

0.093790 0.130378 0.093250 0.317418

0.086886 0.128056 0.093250 0.308192

RESIDENTIAL Town of Oakville Region of Halton School Boards (Public and Separate) MULTI-RESIDENTIAL Town of Oakville Region of Halton School Boards (Public and Separate) COMMERCIAL – FULL RATE Town of Oakville Region of Halton School Boards (Public and Separate)

INDUSTRIAL – FULL RATE Town of Oakville Region of Halton School Boards (Public and Separate)

PIPELINE Town of Oakville Region of Halton School Boards (Public and Separate) FARMLAND OR MANAGED FOREST Town of Oakville Region of Halton School Boards (Public and Separate)

TOWN OF OAKVILLE ANNUAL REPORT 2005

FIVE YEAR REVIEW (UNAUDITED)

R E V E N U E F U N D O P E R AT I O N S (in thousands)

EXPENDITURES BY FUNCTION General Government Protection to Persons & Property Transportation Services Environmental Services Health Services Social and Family Services Recreation and Cultural Services Planning and Development Financing Repayments & Transfers

2005

2004

2003

2002

2001

20,744 23,973 30,649 588 841 39 28,836 6,846 22,622 135,138

17,098 21,969 27,767 466 755 47 26,313 5,389 25,639 125,443

14,434 21,244 26,786 569 642 42 25,222 4,657 20,319 113,915

12,387 19,350 21,932 672 645 5 23,234 4,208 22,073 104,506

11,058 18,649 21,192 445 556 5 20,658 4,088 15,494 92,145

73,098 37,768 1,650

66,978 31,301 1,525

61,490 30,687 1,419

56,990 24,087 1,356

52,628 22,267 1,756

22,622 135,138

25,639 125,443

20,319 113,915

22,073 104,506

15,494 92,145

88,724 3,269 266

83,756 778 316

72,968 692 336

66,812 685 305

60,999 658 394

5,392 31,361 6,126 135,138

6,091 29,380 5,072 125,393

4,891 29,579 5,551 114,017

3,994 27,792 4,862 104,450

1,534 23,777 4,888 92,250

638

688

586

642

EXPENDITURES BY OBJECT Salaries, Wages & Employee Benefits Materials, Services & Financial Expenses Transfers to Others Debt Principal Repayment & Own Fund Transfers

Reference: Consolidated Statement of Financial Activities & Note 17 for 2005

REVENUES BY SOURCE Taxation (includes Supplementary & Payments in Lieu) Province of Ontario – Grants/Subsidies Other Grants – i.e. Canada Oakville Hydro Interest on Promissory Notes & Leases Fees and Service Charges Other Revenue Accumulated Net Revenue (Surplus) at the end of the year Reference: Schedule of Operating Fund Financial Activities

TOWN OF OAKVILLE ANNUAL REPORT 2005

C A P I TA L O P E R AT I O N S (in thousands)

EXPENDITURES BY FUNCTION General Government Protection to Persons & Property Transportation Services Environmental Services Health Services Recreation and Cultural Services Planning and Development FINANCING BY SOURCE Transfers from Own Funds Long-term Debt/Internal Borrowing Grants/Subsidies –- Federal/Provincial Other Reference: Schedule of Capital Fund Financial Activities

2005

2004

2003

2002

2001

4,435 2,432 18,049 1,011 130 17,629 949 44,635

4,148 3,267 22,463 1,089 61 9,716 4,102 44,846

2,863 2,702 26,897 262 6 9,834 4,337 46,901

4,218 1,697 10,408 42 14 7,619 1,878 25,876

13,570 909 34,127 5 3 18,925 1,014 68,553

18,090 3,584 941 19,828 42,443

20,796 7,725 1,313 18,924 48,758

18,122 710 453 18,274 37,559

18,943 3,371 562 8,560 31,436

20,155 11,266 408 28,994 60,823

DISCRETIONARY RESERVES & RESERVE FUNDS A N D O B L I G AT O R Y R E S E R V E F U N D S (in thousands)

Discretionary Reserves Discretionary Reserve Funds Obligatory Reserve Funds* • Development Charges • Parkland • Gas Tax • Parking TOTAL – RESERVES & RESERVE FUNDS

2005

2004

2003

2002

2001

27,960 11,051

28,562 7,594

24,816 8,471

21,959 9,851

19,629 9,416

45,081 9,064 2,521 2,466 98,143

40,685 6,917 273 2,124 86,155

37,765 5,038

32,024 3,503

18,214 2,598

1,954 78,044

1,675 69,012

1,755 51,612

* Reported on the Consolidated Statement of Financial Position as “Deferred Revenue” in compliance with PSAB reporting requirements

NET LONG TERM DEBT NET LONG-TERM LIABILITIES Town of Oakville Purposes 23,965 24,009 18,926 21,567 Per Capita $151.01 $154.20 $124.19 $145.53 Percentage of taxable assessment 0.11% 0.12% 0.11% 0.14% ANNUAL CHARGES FOR NET LONG-TERM LIABILITIES – PRINCIPAL & INTEREST Town of Oakville Purposes 4,962 3,704 3,957 3,851 Annual Repayment Limit prescribed by Province 23,820 22,014 20,851 18,193 As a Percentage of Revenue Fund Expend. 3.7% 3.0% 3.5% 3.7% Per Capita $31.27 $23.79 $25.97 $25.98 Percentage of taxable assessment 0.023366% 0.018183% 0.023071% 0.025882%

20,746 $141.61 0.14% 3,223 17,874 3.5% $22.00 0.022437%

P R I N C I P A L C O R P O R A T E T A X P AY E R S • Ford Motor Company • Cambridge Leaseholds – Oakville Place Shopping Mall • Petro-Canada • Silgold Developments Inc. • Oakville Entertainment Holdings Inc.

• 2725321 Canada Inc. – Town Centre I Shopping Plaza • Sun Life Assurance Company of Canada – Town Centre II Shopping Plaza • Capreit Apartments Inc. • Urban Core Road Builder • Goodrich Aerospace Canada Ltd.

TOWN OF OAKVILLE ANNUAL REPORT 2005

The Corporation of the Town of Oakville 1225 Trafalgar Road, P.O. Box 310 Oakville, Ontario L6J 5A6 Phone: 905-845-6601 www.oakville.ca