THE CORPORATION OF THE TOWN OF LINCOLN FINANCE AND ADMINISTRATION COMMITTEE A G E N D A. June 26, :00 p.m. Council Chambers

Transcription

1 THE CORPORATION OF THE TOWN OF LINCOLN FINANCE AND ADMINISTRATION COMMITTEE A G E N D A June 26, :00 p.m. Council Chambers Page 1. CALL TO ORDER 2. ROLL CALL 3. DECLARATIONS OF INTEREST 4. CONFIRMATION OF AGENDA 5. DELEGATIONS (a) KPMG, re: Presentation of Town of Lincoln Audit Findings Report and Consolidated Financial Statements for the year ending December 31, CORRESPONDENCE (a) Redstone Winery, re: Gordon Lightfoot Concert, Request for Designation as a Municipally Significant Event. 7. REPORTS (a) Lincoln Fire Rescue and Emergency Services, 2016 Highlights and 2017 Work Plan. (b) FD 17-05, 2016 Fire Department Annual Report (c) AD 17-15, Proposed changes to the Employment Standards Act (d) TR 17-16, 2016 Annual Investment Report (e) AD 17-14, Advertising and Sponsorship Program Update - Revenue Projections 8. COUNCILLOR ENQUIRIES 9. NOTICE OF MOTION 10. ANNOUNCEMENTS 11. CLOSED SESSION Page 1 of 134

2 Page 11. CLOSED SESSION (a) Litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board (a matter pertaining to the Campden Fire Station Project). 12. ADJOURNMENT Page 2 of 134

3 Town of Lincoln Audit Findings Report For the year ended December 31, 2016 Licensed Public Accountants Page 3 of 134 June 26, 2017 kpmg.ca/audit

4 Town of Lincoln Audit Findings Report for the year ended December 31, The contacts at KPMG in connection with this report are: Lois Ouellette, CPA, CA Lead Audit Engagement Partner Tel: louellette@kpmg.ca Table of Contents Executive summary 3 Audit risks and results 5 Accounting estimates 7 Data & Analytics in the audit 8 Heather Doerksen, CPA, CA Audit Senior Manager Tel: hdoerksen@kpmg.ca Financial statement presentation and disclosure 9 Analysis of financial performance 10 Adjustments and differences 20 Control observations 21 Appendices 22 Page 4 of 134

5 Town of Lincoln Audit Findings Report for the year ended December 31, Executive summary Purpose of this report* The purpose of this Audit Findings Report is to assist you, as a member of the Finance and Administration Committee, in your review of the results of our audit of the consolidated financial statements of the Town of Lincoln as at and for the year ended December 31, Changes from the Audit Plan There have been no significant changes regarding our audit from the audit planning discussions previously held with you. Audit risks and results We discussed with you at the start of the audit a number of significant financial reporting risks. These risks have been addressed in our audit. We also discussed with you some other areas of audit focus. We have no significant matters to report to the Finance and Administration Committee in respect of them. See pages 5-6 Adjustments and differences We did not identify differences that remain uncorrected. See page 16 Page 5 of 134 This Audit Findings Report should not be used for any other purpose or by anyone other than the Finance and Administration Committee. KPMG shall have no responsibility or liability for loss or damages or claims, if any, to or by any third party as this Audit Findings Report has not been prepared for, and is not intended for, and should not be used by, any third party or for any other purpose.

6 Town of Lincoln Audit Findings Report for the year ended December 31, Executive summary Page 6 of 134 Finalizing the audit As of June 26 th, 2017, we have completed the audit of the consolidated financial statements, with the exception of certain remaining procedures, which include amongst others: receipt of legal confirmation letters subsequent events discussion with management completing our discussions with the Finance and Administration Committee receiving the signed management letter obtaining evidence of Council s approval of the financial statements. We will update you on significant matters, if any, arising from the completion of the audit, including the completion of the above procedures. Our auditors report will be dated upon the completion of any remaining procedures. Control and other observations We did not identify any control deficiencies that we determined to be significant deficiencies in ICFR. See page 9 Accounting estimates Overall, we are satisfied with the reasonability of accounting estimates. The areas of estimation relate to: employee future benefits, liability for site remediation, developer contributed assets and allowance for doubtful accounts. See pages 7-8 Independence We can confirm that we are independent with respect to the Town of Lincoln (and its related entities), within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulation. Significant accounting policies and practices There have been no initial selections of, or changes to, significant accounting policies and practices to bring to your attention.

7 Town of Lincoln Audit Findings Report for the year ended December 31, Audit risks and results Inherent risk of material misstatement is the susceptibility of a balance Significant financial reporting risks Why Our response and significant findings or assertion to misstatement which could be material, individually or when aggregated with other misstatements, assuming that there are no related controls. Fraud risk from revenue recognition This is a presumed fraud risk under Canadian Auditing Standards. Potential risk of fraud could include recognizing or delaying development charge revenue. We performed substantive testing over revenue recognition related to significant developer contributions and charges. We ensured the charges and contributions were recognized in the appropriate period when earned. We highlight our significant findings in respect of significant financial reporting risks as identified in our discussion with you in the Audit Plan, as well Fraud risk from management override of controls This is a presumed fraud risk. We have not identified any specific additional risks of management override relating to this audit. We performed procedures over journal entries and other adjustments including a retrospective review of estimates and evaluating the business rationale of significant unusual transactions. See Data & Analytics segment of the report on page 8. as any additional significant risks identified. Page 7 of 134

8 Town of Lincoln Audit Findings Report for the year ended December 31, Audit risks and results Significant findings from the audit regarding other areas of focus are as follows: Other areas of focus Revenue and deferred revenue Why Risk of material misstatement related to the completeness and accuracy of grant revenue, developer contributions and restricted revenue Our response and significant findings We performed substantive testing over revenue recognition related to significant developer contributions and charges and other restricted revenue sources such as government grants. We ensured the charges and contributions were recognized in the appropriate period when earned. Tangible capital assets (TCA) Risk of material misstatement related to the classification, completeness and accuracy of tangible capital assets We tested significant additions and disposals during the year including significant contributed assets. We ensured that these assets were appropriately recognized and valued in TCA. Page 8 of 134

9 Town of Lincoln Audit Findings Report for the year ended December 31, Accounting estimates Page 9 of 134 Management disclosed information in the consolidated financial statements about the assumptions it makes about the future, and other major sources of estimation uncertainty at the end of the reporting period, that have a significant risk of resulting in a material adjustment to carrying amounts of assets and liabilities within the next financial year. Generally, these are considered to be critical accounting estimates. We have summarized our assessment of the subjective areas. Accounting estimates Asset / liability Contaminated sites liability Post-employment benefit liability Developer contributed assets Balance ($ 000s) KPMG comment $1,085 Effective for years beginning on or after April 1, 2014 all entities preparing financial statements under PSAB were required to adopt PS 3260, Liability for contaminated sites. This standard was implemented in the prior year for the Town. We reviewed management s listing of identified contaminated sites and the analysis against the prescribed criteria to determine if a liability should be recorded. We gained an understanding and assessed the reasonability of the remediation estimates for contaminated sites deemed to be relevant to this standard and performed a recalculation of the present value of the determined liability. We evaluated the reasonability of the applied discount and inflation rate and deemed them to be appropriate for the purposes of the calculation. We have concluded that management s approach to estimating the value of the total liability of the identified sites is adequate. However, there is currently no formal process of identifying contaminated sites from newly acquired land. $770 The Town provides certain employee benefits which will require funding in future periods. These benefits include certain health and dental benefits and life insurance benefits for early retirees. Management has utilized an external expert (actuary) to estimate these liabilities and a new actuarial valuation was obtained in 2014 to determine the liability projections for 2014, 2015 and 2016, with no changes for the 2016 estimates. We reviewed management s assumptions for reasonableness in We believe that management s expert and management s assumptions are adequate for developing a post-employment benefit estimate. $3,166 Management is required to estimate the fair value of developer contributed assets. We sampled significant developer contributed assets in the current year and for each of the items tested we assessed the reasonableness for the estimated fair value made by management. We found no audit differences. We believe management s process for identifying accounting estimates is considered adequate for post-employment benefit liabilities and developer contributed assets, however, there would be a benefit to formalizing the process over identification of contaminated sites liabilities.

10 Town of Lincoln Audit Findings Report for the year ended December 31, Data & Analytics in the audit We have utilized Data & Analytics (D&A) in order to enhance the quality and effectiveness of the audit. We have summarized areas of the audit where D&A tools and routines were used. Area(s) of focus Journal Entry Testing D&A tools and routines Utilizing KPMG application software (IDEA) to evaluate the completeness of the journal entry population through a roll-forward of all accounts Utilizing computer-assisted audit techniques (CAATs) to analyze journal entries and apply certain criteria to identify potential high-risk journal entries for further testing such as entries that adjust the cash accounts while impacting a revenue or expense account or entries that move costs between funded programs Our results We used D&A in the audit and analysis of journal entries at the Town in order to select high risk journal entries for testing, and will be doing so on a going forward basis. Both completeness and high-risk entries were successfully addressed during the testing phase of the audit with no errors. Page 10 of 134

11 Town of Lincoln Audit Findings Report for the year ended December 31, Financial statement presentation and disclosure The presentation and disclosure of the financial statements are, in all material respects, in accordance with the Company s relevant financial reporting framework. Misstatements, including omissions, if any, related to disclosure or presentation items are in the management representation letter included in the Appendices. We also highlight the following: Form, arrangement, and content of the financial statements Application of accounting pronouncements issued but not yet effective The financial statements are, in all material respects, in accordance with the applicable financial accounting framework. The disclosures in the notes to the financial statements are adequate. There are no concerns at this time regarding future implementation. See appendix 6 Page 11 of 134

12 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Due to the lack availability of FIR data for 2016, the following analysis has been performed based on 2015 FIR figures. Analysis of key metrics and data insights to comparative municipalities Management has provided us a listing of comparator municipalities. The comparators chosen have similar household and municipal taxation revenue figures. The chosen comparators are as follows: Grimsby Pelham Port Hope Scugog Thorold Uxbridge The following metrics and data insights will be analyzed in the following pages Residential taxation per household Taxes receivable as a percentage of total levy Debt per household Reserves per household General government costs per household Page 12 of 134

13 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Households: SLC Municipal Taxes: LT/ST SLC Residential taxation per household $2,500 $2,000 $1,500 $1,000 $500 $ Lincoln Scugog Uxbridge Grimsby Thorold Pelham Port Hope Page 13 of 134

14 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Taxes receivable: SLC TOTAL before Adj. TOTAL Taxes SLC Taxes receivable as a percentage of total levy 12% 10% 8% 6% 4% 2% 0% Grimsby Uxbridge Thorold Pelham Lincoln Port Hope Scugog Page 14 of 134

15 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Taxes receivable: SLC TOTAL before Adj. TOTAL Taxes SLC Lincoln: Taxes receivable as a percentage of total levy 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Page 15 of 134

16 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Households: SLC Debt: SLC Note: Uxbridge data was not available for this metric. Debt per household $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $ Grimsby Scugog Thorold Lincoln Pelham Port Hope Page 16 of 134

17 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Households: SLC Reserves and Reserve Funds (SLC ): SLC Reserves per household $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $ Pelham Uxbridge Scugog Grimsby Lincoln Thorold Port Hope Page 17 of 134

18 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Lincoln: Audited consolidated financial statements 2015 Average: Association of Municipalities of Ontario Lincoln: Reserves and Reserve Funds (in 000 s) $25,000 $20,000 $15,000 $10,000 $5,000 $ Page 18 of Average Reserve and Reserve Funds for Southern Ontario lower tier municipalities, population between 20,000 and 39,999

19 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Lincoln: Audited consolidated financial statements 2015 Average: Association of Municipalities of Ontario Lincoln: 2016 Reserves and Reserve Funds Buildings and facilities (4.9%) Community Improvement Plan (0.7%) Special capital projects (0.8%) Roadways (0.3%) Working capital (6.6%) Vehicles and equipment (13.4%) Capital rate stabilization (2.6%) Levy rate stabilization (2.3%) West Lincoln Memorial Hospital (10%) Water/WW main replacement (57.7%) Other Reserves (0.7%) Page 19 of 134 Note: excludes Obligatory Reserves Development Charges, Parkland, and Gas Tax

20 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Households: SLC General government costs: sch Amortization: sch General government costs per household $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $ Grimsby Thorold Lincoln Uxbridge Scugog Pelham Port Hope Page 20 of 134

21 Town of Lincoln Audit Findings Report for the year ended December 31, Analysis of financial performance Source data Households: SLC General government costs: sch Amortization: sch Lincoln: General government costs per household $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Page 21 of 134

22 Town of Lincoln Audit Findings Report for the year ended December 31, Adjustments and differences Adjustments and differences identified during the audit have been categorized as Corrected adjustments or Uncorrected differences. These include disclosure adjustments and differences. Corrected adjustments The management representation letter includes all adjustments identified as a result of the audit, communicated to management and subsequently corrected in the financial statements. Uncorrected differences We did not identify differences that remain uncorrected. Professional standards require that we request of management and the Finance and Administration Committee that all identified differences be corrected. We have already made this request of management. Page 22 of 134

23 Town of Lincoln Audit Findings Report for the year ended December 31, Control observations Other In accordance control deficiencies with may professional be identified standards, during we the are audit required that to do not rise to the communicate level of significant to the deficiency. Finance and Administration Committee any control deficiencies that we identified during the audit and have determined to be significant deficiencies in ICFR. Significant deficiencies No significant deficiencies have been identified. Page 23 of 134

24 Town of Lincoln Audit Findings Report for the year ended December 31, Appendices Appendix 1: Required communications Appendix 2: Value for fees Appendix 3: Audit Quality and Risk Management Appendix 4: Background and professional standards Appendix 5: Data & Analytics in the Audit Appendix 6: Current developments Page 24 of 134

25 Town of Lincoln Audit Findings Report for the year ended December 31, Appendix 1: Required communications In accordance with professional standards, there are a number of communications that are required during the course of and upon completion of our audit. These include: Auditors report the conclusion of our audit is set out in our draft auditors report attached to the draft financial statements. Management representation letter we will obtain from management at the completion of the annual audit. In accordance with professional standards, copies of the management representation letter are provided to the Finance and Administration Committee. CPAB Big Four Firm Public Report (November 2016) Please refer to Report_EN.pdf Page 25 of 134

26 Town of Lincoln Audit Findings Report for the year ended December 31, Appendix 2: Value for fees The Value of our Audit Services We recognize that the primary objective of our engagement is the completion of the audit of the consolidated financial statements in accordance with professional standards. We also believe that our role as external auditor of the Town and the access to information and people in conjunction with our audit procedures, place us in a position to provide other forms of value. We know that you expect this of us. We understand your expectations. We believe our extensive industry experience on our audit team enhances the value of our audit service. We recognize that this is a necessary component of a rigorous audit. Extensive industry experience on our audit team as you have experienced, the senior members of our team have extensive experience in audits of municipalities and other public sector organizations. This experience ensures that we are well positioned to identify and discuss observations and insights that are important to you, as we have demonstrated to you through conversations regarding upcoming PSAB changes and navigating changes which have recently occurred, such as contaminated sites. Page 26 of 134

27 Town of Lincoln Audit Findings Report for the year ended December 31, Appendix 3: Audit Quality and Risk Management KPMG maintains a system of quality control designed to reflect our drive and determination to deliver independent, unbiased advice and opinions, and also meet the requirements of Canadian professional standards. Quality control is fundamental to our business and is the responsibility of every partner and employee. The following diagram summarises the six key elements of our quality control systems. Visit our Audit Quality Resources page for more information including access to our audit quality report, Audit quality: Our hands-on process. Page 27 of 134 Other controls include: Before the firm issues its audit report, the Engagement Quality Control Reviewer reviews the appropriateness of key elements of publicly listed client audits. Technical department and specialist resources provide realtime support to audit teams in the field. We conduct regular reviews of engagements and partners. Review teams are independent and the work of every audit partner is reviewed at least once every three years. We have policies and guidance to ensure that work performed by engagement personnel meets applicable professional standards, regulatory requirements and the firm s standards of quality. All KPMG partners and staff are required to act with integrity and objectivity and comply with applicable laws, regulations and professional standards at all times. Other risk management quality controls Independent monitoring Independence, integrity, ethics and objectivity Engagement performance standards Personnel management Acceptance & continuance of clients / engagements We do not offer services that would impair our independence. The processes we employ to help retain and develop people include: Assignment based on skills and experience; Rotation of partners; Performance evaluation; Development and training; and Appropriate supervision and coaching. We have policies and procedures for deciding whether to accept or continue a client relationship or to perform a specific engagement for that client. Existing audit relationships are reviewed annually and evaluated to identify instances where we should discontinue our professional association with the client.

28 Town of Lincoln Audit Findings Report for the year ended December 31, Appendix 4: Background and professional standards Internal control over financial reporting As your auditors, we are required to obtain an understanding of internal control over financial reporting (ICFR) relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances for the purpose of expressing an opinion on the financial statements, but not for the purpose of expressing an opinion on internal control. Accordingly, we do not express an opinion on the effectiveness of internal control. Our understanding of ICFR was for the limited purpose described above and was not designed to identify all control deficiencies that might be significant deficiencies and therefore, there can be no assurance that all significant deficiencies and other control deficiencies have been identified. Our awareness of control deficiencies varies with each audit and is influenced by the nature, timing, and extent of audit procedures performed, as well as other factors. Documents containing or referring to the audited financial statements We are required by our professional standards to read only documents containing or referring to audited financial statements and our related auditors report that are available through to the date of our auditors report. The objective of reading these documents through to the date of our auditors report is to identify material inconsistencies, if any, between the audited financial statements and the other information. We also have certain responsibilities, if on reading the other information for the purpose of identifying material inconsistencies, we become aware of an apparent material misstatement of fact. We are also required by our professional standards when the financial statements are translated into another language to consider whether each version, available through to the date of our auditors report, contains the same information and carries the same meaning. Page 28 of 134

29 Town of Lincoln Audit Findings Report for the year ended December 31, Appendix 5: Data & Analytics in Audit Turning data into value KPMG continues to make significant investments in our Data & Analytics (D&A) capabilities to help enhance audit quality and provide actionable insight to our clients by unlocking the rich information that businesses hold. When D&A is applied to the audit, it enables us to test complete data populations and understand the business reasons behind outliers and anomalies. Advancements in D&A tools allow us to analyze data at more granular levels, focusing on higher risk areas of the audit and developing insights you can then leverage to improve compliance, potentially uncover fraud, manage risk and more. KPMG is enhancing the audit D&A ENABLED AUDIT METHODOLOGY The combination of our proven industry experience, technical know-how and external data allows us to focus our audit on the key business risks, while providing relevant insights of value to you. FOR THE AUDIT FOR YOUR BUSINESS Page 29 of 134 AUDIT QUALITY Automated testing of 100% of the population Focuses manual audit effort on key exceptions and identified risk areas ACTIONABLE INSIGHT Helping you see your business from a different perspective How effectively is your organization using your systems?

30 Town of Lincoln Audit Findings Report for the year ended December 31, Appendix 6: Current developments Current developments, created by KPMG Public Sector and Not-for-profit Practice, summarizes regulatory and governance matters impacting Government Organizations. We provide this information to help you understand upcoming changes and challenges they may face in the industry. We attach this summary to every audit plan and findings report (if significant changes occur). Standard under development A new accounting standard that addresses the reporting of legal obligations associated with the retirement of long-lived tangible capital assets currently in productive use is under development by PSAB. An Exposure Draft that addresses the accounting and reporting of retirement obligations associated with tangible capital assets controlled by a public sector entity was issued in March PSAB has had regular updates on this project. Implementation of this standard will require a review of the legal obligations associated with the retirement of long-lived tangible capital assets. This standard is effective for years beginning on or after April 1, The following is a summary of the current developments that are relevant to the Town: PS Introduction Standard Summary and implications This standard provides the standards to be followed by government partnerships. Government business partnerships (with all public sector partners) are to follow the standards applicable to publicly accountable entities in Part I of the CPA Canada Handbook Accounting. Non-business government partnerships with only government partners can chose either PSA Standards or the standards applicable to publicly accountable entities in Part I of the CPA Canada Handbook Accounting. Government partnerships that have one or more private sector partners should use the standards determined by the partners. This section also requires government organizations that meet the new definition of government components to apply the PSA Standards This standard is effective for fiscal periods beginning on or after January 1, 2017 (the Town s December 31, 2017 year-end) Page 30 of 134

31 Town of Lincoln Audit Findings Report for the year ended December 31, PS 3380 Contractual Rights This standard defines contractual rights to future assets and revenue. Information about a public sector entity's contractual rights should be disclosed in notes or schedules to the financial statements and should include descriptions about their nature and extent and the timing. The standard also indicates that the exercise of professional judgment would be required when determining contractual rights that would be disclosed. Factors to consider include, but are not limited to: (a) contractual rights to revenue that are abnormal in relation to the financial position or usual business operations; and (b) contractual rights that will govern the level of certain type of revenue for a considerable period into the future. This standard is effective for fiscal periods beginning on or after April 1, 2017 (the Town s December 31, 2018 year end). Implications: Additional disclosures may be required if contractual rights to assets or revenue exist PS Related Party Disclosures This standard relates to related party disclosures and defines related parties. Related parties could be either an entity or an individual. Related parties exist when one party has the ability to control or has shared control over another party. Individuals that are key management personnel or close family members may also be related parties. Disclosure is only required when the transactions or events between related parties occur at a value different from what would have been recorded if they were not related and the transactions could have a material financial impact on the financial statements. Material financial impact would be based on an assessment of the terms and conditions underlying the transaction, the financial materiality of the transaction, the relevance of the information and the need for the information to enable the users to understand the financial statements and make comparisons. This standard also specifies the information required to be disclosed including the type of transactions, amounts classified by financial statement category, the basis of measurement, and the amounts of any outstanding items, any contractual obligations and any contingent liabilities. The standard also requires disclosure of related party transactions that have occurred where no amounts has been recognized. This standard is effective for fiscal periods beginning on or after April 1, 2017 (the Town s December 31, 2018 year-end). Page 31 of 134 Implications: Related parties will have to be identified. Additional disclosures may be required with respect to transactions with related parties

32 Town of Lincoln Audit Findings Report for the year ended December 31, PS Restructuring Transactions This standard prescribes measurement standards and disclosure requirements when a restructuring transaction exists. A restructuring transaction in the public sector differs from an acquisition as they generally include either no or nominal payment. It also differs from a government transfer as the recipient would be required to assume the related program or operating responsibilities. The standard requires that assets and liabilities are to be measured at their carrying amount. It also prescribes financial statement presentation and disclosure requirements. This standard is effective for fiscal periods beginning on or after April 1, 2018 (the Town s December 31, 2019 year-end). Implications: Not likely to impact the Town PS Inter-entity Transactions PS Assets This standard relates to the measurement of transactions between public sector entities that comprise the government s reporting entity. Transactions are recorded at carrying amounts with the exception of the following: In the normal course of business use exchange amount Fair value consideration use exchange amount No or nominal amount provider to use carrying amount; recipient choice of either carrying amount or value fair. Cost allocation use exchange amount This standard is effective for fiscal periods beginning on or after April 1, 2018 (the Town s December 31, 2019 year-end). Implications: The Town will have to identify these transactions and determine if they have been measured at the carrying amount if required. This standard provides a definition of assets and further expands that definition as it relates to control. Assets are defined as follows: Page 32 of 134 They embody future economic benefits that involve a capacity, singly or in combination with other assets, to provide goods and services, to provide future cash inflows, or to reduce cash outflows. The public sector entity can control the economic resource and access to the future economic benefits. The transaction or event giving rise to the public sector entity's control has already occurred. The standard also includes some disclosure requirements related to economic resources that are not recorded as assets to provide the user with better information about the types of resources available to the public section entity. This standard is effective for fiscal periods beginning on or after April 1, 2017 (the Town s December 31, 2018 year-end). Implications: Assets will have to be reviewed to determine if they meet this definition

33 Town of Lincoln Audit Findings Report for the year ended December 31, PS 3320 Contingent Assets Financial Instruments This standard defines contingent assets. They have two basis characteristics: An existing condition or situation that is unresolved at the financial statement date. An expected future event that will resolve the uncertainty as to whether an asset exists. The standard also has specific disclosure requirements for contingent assets when the occurrence of the confirming event is likely. Implications: Additional disclosures may be required if contingent assets exist. This standard is effective for fiscal periods beginning on or after April 1, 2017 (the Town s December 31, 2018 year-end). A standard has been issued, establishing a standard on accounting for and reporting all types of financial instruments including derivatives. The effective date of this standard has recently been deterred and it is now effective for fiscal periods beginning on or after April 1, 2019 (the Town s December 31, 2020 year-end). Implications: This standard will require the Town to identify any contracts that have embedded derivatives and recognize these on the consolidated statement of financial position at fair value. Portfolio investments in equity instruments are required to be recorded at fair value. Changes in fair value will be reported in a new financial statement statement of remeasurement gains and losses. This standard sets out a number of disclosures in the financial statements designed to give the user an understanding of the significance of financial instruments to the Town. These disclosures include classes of financial instruments and qualitative and quantitative risk disclosures describing the nature and extent of risk by type. The risks to be considered include credit, currency, interest rate, liquidity, and market risk. Page 33 of 134

34 Town of Lincoln Audit Findings Report for the year ended December 31, kpmg.ca/audit Page 34 of 134 KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative ( KPMG International ). KPMG member firms around the world have 174,000 professionals, in 155 countries. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved.

35 Consolidated Financial Statements of THE CORPORATION OF THE TOWN OF LINCOLN Year ended December 31, 2016 Page 35 of 134

36 THE CORPORATION OF THE TOWN OF LINCOLN Consolidated Financial Statements Year ended December 31, 2016 Page Consolidated Financial Statements Management s Responsibility for the Consolidated Financial Statements... 1 Independent Auditors Report... 2 Consolidated Statement of Financial Position... 4 Consolidated Statement of Operations... 5 Consolidated Statement of Change in Net Financial Assets... 6 Consolidated Statement of Cash Flows... 7 Notes to Consolidated Financial Statements... 8 Trust Funds Financial Statements Independent Auditors Report on Trust Funds Statement of Financial Position Statement of Continuity Statement of Cash Flows Notes to Trust Funds Financial Statements Page 36 of 134

37 Management s Responsibility for the Consolidated Financial Statements The accompanying consolidated financial statements of The Corporation of the Town of Lincoln (the Town ) are the responsibility of the Town s management and have been prepared in compliance with legislation, and in accordance with Canadian public sector accounting standards. A summary of the significant accounting policies are described in Note 1 to the consolidated financial statements. The preparation of financial statements necessarily involves the use of estimates based on management s judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. The Town s management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the consolidated financial statements. These systems are monitored and evaluated by management. The audit committee meets with management and the external auditors to review the consolidated financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the consolidated financial statements. The consolidated financial statements have been audited by KPMG LLP, independent external auditors appointed by the Town. The accompanying Independent Auditors Report outlines their responsibilities, the scope of their examination and their opinion on the Town s consolidated financial statements. Michael Kirkopoulos Chief Administrative Officer Angela Cifani Director of Finance / Treasurer July 4, Page 37 of 134

38 KPMG LLP 80 King Street, Suite 620 St. Catharines ON L2R 7G1 Canada Tel Fax INDEPENDENT AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Town of Lincoln We have audited the accompanying consolidated financial statements of The Corporation of the Town of Lincoln, which comprise the consolidated statement of financial position as at December 31, 2016, the consolidated statements of operations, change in net financial assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. KPMG Canada provides services to KPMG LLP. 2 Page 38 of 134

39 Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated statement of financial position of The Corporation of the Town of Lincoln as at December 31, 2016, and its consolidated results of operations and the changes in its consolidated net financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants, Licensed Public Accountants St. Catharines, Canada July 4, Page 39 of 134

40 THE CORPORATION OF THE TOWN OF LINCOLN Consolidated Statement of Financial Position December 31, 2016, with comparative information for Financial assets: Cash $ 8,369,564 $ 4,850,576 Long-term investments (note 2) 26,101,040 20,114,112 Accounts receivable 1,708,863 2,370,943 User charges receivable 1,338,919 1,413,122 Taxes receivable (note 3) Current year 1,447,917 2,016,896 Previous years 1,150,043 1,372,725 Investment in Peninsula West Power Inc. (note 4) 17,956,583 17,819,248 58,072,929 49,957,622 Financial liabilities: Accounts payable and accrued liabilities 6,305,619 3,373,051 Employee benefits (note 5) 769, ,380 Liability for site remediation (note 6) 1,085, ,137 Other current liabilities 2,240,807 1,739,210 Deferred revenue (note 7) 10,771,507 9,938,236 Long term debt (note 8) 5,670,646 3,126,168 26,843,478 19,661,182 Net financial assets 31,229,451 30,296,440 Non-financial assets: Tangible capital assets (note 9) 129,162, ,240,856 Inventory 301, , ,463, ,910,616 Accumulated surplus (note 10) $ 160,693,072 $ 156,207,056 The accompanying notes are an integral part of these consolidated financial statements. 4 Page 40 of 134

41 THE CORPORATION OF THE TOWN OF LINCOLN Consolidated Statement of Operations Year ended December 31, 2016, with comparative information for 2015 Budget (note 18) Revenue: Taxation and user charges: Residential and farm taxation $ 13,299,610 $ 10,827,257 $ 10,122,790 Commercial, industrial and business taxation 161,170 2,697,235 2,450,978 Taxation from other governments 170, , ,686 User charges 6,563,391 6,659,358 6,171,596 20,194,371 20,362,377 18,916,050 Grants (note 16): Municipal grants 77, ,364 27,260 Provincial grants 684, , ,804 Federal grants 72, ,282 1,080, ,427 1,491,764 1,845,984 Other: Investment income 200, , ,805 Penalties and interest on taxes 550, , ,127 Contributions from developers - 1,414, ,577 Developer contributed assets - 3,165,891 - Peninsula West Power Inc. net income (note 4) - 316, ,650 Loss on disposal of tangible capital assets - (795,438) (562,119) Sundry 1,107, , ,365 1,857,234 5,370,541 1,496,405 Total revenues 22,886,032 27,224,682 22,258,439 Expenses: General government 3,340,183 3,296,487 3,171,698 Protection to persons and property 2,665,640 2,633,762 2,417,361 Transportation services 6,229,080 7,246,268 6,042,360 Environmental services 2,403,926 2,863,895 2,469,629 Health services 122, , ,008 Social and family services 128, , ,454 Recreation and cultural services 5,405,956 5,326,669 5,030,086 Planning and development 933,747 1,089, ,423 Total expenses 21,229,739 22,738,666 20,229,019 Annual surplus 1,656,293 4,486,016 2,029,420 Accumulated surplus, beginning of year 156,207, ,207, ,177,636 Accumulated surplus, end of year $157,863,349 $ 160,693,072 $ 156,207,056 The accompanying notes are an integral part of these consolidated financial statements. 5 Page 41 of 134

42 THE CORPORATION OF THE TOWN OF LINCOLN Consolidated Statement of Changes in Net Financial Assets Year ended December 31, 2016, with comparative information for Annual surplus $ 4,486,016 $ 2,029,420 Acquisition of tangible capital assets (9,560,462) (4,097,180) Amortization of tangible capital assets 4,841,032 4,651,991 Loss on disposal of tangible capital assets 795, ,119 Proceeds on disposal of tangible capital assets 2,600 50, ,624 3,197,230 Net acquisition of inventory 368,387 (46,656) Change in net financial assets 933,011 3,150,574 Net financial assets, beginning of year 30,296,440 27,145,866 Net financial assets, end of year $ 31,229,451 $ 30,296,440 The accompanying notes are an integral part of these consolidated financial statements. 6 Page 42 of 134

43 THE CORPORATION OF THE TOWN OF LINCOLN Consolidated Statement of Cash Flows December 31, 2016 with comparative information for Cash provided by (used in): Operating activities: Annual surplus $ 4,486,016 $ 2,029,420 Items not involving cash Amortization of tangible capital assets 4,841,032 4,651,991 Loss on disposal of tangible capital assets 795, ,119 Developer contributions of tangible capital assets (3,165,891) - Peninsula West Power Inc. net income (note 4) (316,400) (551,650) Change in non-cash assets and liabilities: Decrease in accounts receivable 662,080 7,977 Decrease (increase) in user charges receivable 74,203 (149,492) Decrease (increase) in taxes receivable 791,661 (396,643) Increase (decrease) in accounts payable and accrued liabilities 2,932,568 (66,049) Increase (decrease) in employee benefits 11,408 (169) Increase (decrease) in liability for site remediation 358,974 (150,002) Increase in other current liabilities 501, ,716 Increase in deferred revenue 833, ,468 Decrease (increase) in inventory 368,387 (46,656) Net change in cash from operating activities 13,174,344 6,167,030 Capital activities: Proceeds on disposal of tangible capital assets 2,600 50,880 Cash used to acquire tangible capital assets (6,394,571) (4,097,180) Net change in cash from capital activities (6,391,971) (4,046,300) Investing activities: Dividend received from Peninsula West Power Inc. (note 4) 179, ,566 Increase in investments (5,986,928) (8,969,164) Net change in cash from investing activities (5,807,863) (8,822,598) Financing activities: Long-term liability issued 3,200, ,000 Long-term liability principal repayment (655,522) (483,631) Net change in cash from financing activities 2,544, ,369 Net change in cash 3,518,988 (6,372,499) Cash, beginning of year 4,850,576 11,223,075 Cash, end of year $ 8,369,564 $ 4,850,576 Cash paid for interest on long term liabilities $ 134,398 $ 87,689 Cash received for interest income 618, ,690 The accompanying notes are an integral part of these consolidated financial statements. 7 Page 43 of 134

44 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Significant accounting policies: The consolidated financial statements of The Corporation of the Town of Lincoln (the Town ) are prepared by management in accordance with Canadian public sector accounting standards ( PSAS ). Significant accounting policies adopted by the Town are as follows: (a) Reporting entity: The consolidated financial statements reflect the assets, liabilities, revenues, expenses and fund balances of the reporting entity. The reporting entity is comprised of all organizations, committees and local boards accountable for the administration of their financial affairs and resources to the Town and which are owned or controlled by the Town. These financial statements include: Public Library Board Beamsville Central Business Improvement Area Interdepartmental and inter-organizational transactions and balances between these organizations are eliminated. The investment in Peninsula West Power Inc. ( PWPI ) has been accounted for on a modified equity basis, consistent with the generally accepted accounting treatment for government business enterprises. Under the modified equity basis, the business enterprise s accounting principles are not adjusted to conform with those of the Town, and inter-organizational transactions and balances are not eliminated. The Town s share of PWPI is 59%. (b) Accrued basis of accounting: The Corporation follows the accrual method of accounting for revenues and expenses. Revenues are normally recognized in the year in which they are earned. Expenses are recognized as they are incurred and measurable as a result of receipt of goods or services. (c) Investments: Investments are carried at cost, except if the market value of the investments become lower than cost and this decline is considered to be other than temporary, the investments are written down to their market values. (d) Non-financial assets: Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. 8 Page 44 of 134

45 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Significant accounting policies (continued): (d) Non-financial assets (continued): (i) Tangible capital assets: Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets, excluding land and landfill sites, are amortized on a straight line basis over their estimated useful lives as follows: Asset Useful Life - Years Land improvements 7-20 Buildings and components Linear assets Machinery and equipment Furniture and fixtures 4-20 One half of the annual amortization is charged in the year of acquisition and in the year of disposal. Assets under construction are not amortized until the asset is available for productive use. (ii) Contributions of tangible capital assets: Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and also are recorded as revenue. (iii) Inventory: Inventory held for consumption is recorded at the lower of cost and replacement cost. (e) Reserves and reserve funds: Certain amounts, as approved by Council, are set aside in reserves and reserve funds for future operating and capital purposes. Transfers to and/or from reserves and reserve funds are an adjustment to the respective fund when approved. (f) Taxation revenue: Taxes receivables and tax revenue are recognized when they meet the definition of an asset, the tax is authorized and the taxable event has occurred. (g) Government transfers: Government transfers are recognized as revenue in the financial statements when the transfer is authorized, and eligibility criteria are met and a reasonable estimate of the amount can be made, except when and to the extent that stipulations by the transferor give rise to an obligation that meet the definition of a liability. Government transfers that meet the definition of a liability are recognized as revenue as the liability is extinguished. 9 Page 45 of 134

46 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Significant accounting policies (continued): (h) Deferred development revenue: Deferred development revenues represent user charges and fees which have been collected but for which the related services have yet to be performed. These amounts will be recognized as revenues in the fiscal year the services are performed. (i) Investment income: Investment income earned on surplus current funds, capital funds, reserves and reserve funds other than obligatory reserve funds (deferred development revenue) are reported as revenue in the period earned. Investment income earned on obligatory reserve funds is added to the fund balance and forms part of the deferred revenue. (j) Use of estimates: The preparation of financial statements in conformity with public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. (k) Adoption of New Accounting Policy: On January 1, 2015 the Town adopted Public Sector Accounting Board Standard PS3260 Liability for Contaminated Sites. Under PS3260, contaminated sites are defined as the result of contamination being introduced in air, soil, water or sediment of a chemical, organic, or radioactive material or live organism that exceeds an environmental standard. This standard relates to sites that are not in productive use and sites in productive use where an unexpected event resulted in contamination. The Town adopted this standard on a retroactive basis and there were no adjustments as a result of the adoption of this standard. 2. Long-term investments: The total of investments of $26,101,040 ( $20,114,112) reported on the consolidated statement of financial position at cost, have a market value of $26,086,600 ( $19,942,583) at December 31, Taxes receivable and revenues: Property tax billings are prepared by the Town based on an assessment roll prepared by the Municipal Property Assessment Corporation ( MPAC ). The property tax receivables and tax revenue of the Town are subject to measurement uncertainty as a number of appeals submitted by ratepayers have yet to be heard. The Province of Ontario has enacted a mandatory capping program which limits assessment related increases in property tax bills to 5%. 10 Page 46 of 134

47 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Investments in Peninsula West Power Inc.: The following provides condensed supplementary financial information for the operations of Peninsula West Power Inc. for the years ended December 31, 2016 and December 31, The Town owns 59% of the outstanding shares of Peninsula West Power Inc. Financial position: Current assets $ 1,334,468 $ 1,290,164 Capital assets 106, ,953 Investment in Niagara Peninsula Energy Inc. (25.5% ownership) 35,371,434 34,689,814 Deferred tax asset 21,464 19,623 Total assets 36,833,396 36,101,554 Current liabilities 27,382 59,061 Other liabilities 5,673,457 5,142,706 Total liabilities 5,700,839 5,201,767 Net assets 31,132,557 30,899,787 Minority interest (12,764,348) (12,668,913) Fair market value adjustment (411,626) (411,626) Investment in Peninsula West Power Inc. $ 17,956,583 $ 17,819,248 Results of operations: Revenues $ 195,685 $ 243,955 Operating expenses 158, ,526 36,795 39,429 Other items 499, ,571 Net income before the undernoted 536, ,000 Minority interest (219,870) (383,350) Net income Peninsula West Power Inc. $ 316,400 $ 551,650 The equity in Peninsula West Power Inc.: Opening balance $ 17,819,248 $ 17,414,164 Net Income 316, ,650 Dividends received (179,065) (146,566) Closing balance investment in Peninsula West Power Inc. $ 17,956,583 $ 17,819, Page 47 of 134

48 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Employee benefits: The Town provides certain employee benefits which will require funding in future periods Vacation pay $ 249,288 $ 241,380 Post-employment benefits 520, ,000 $ 769,788 $ 758,380 Accrued vacation pay: Any unused credits may be carried forward to the next year. Post-employment benefits: The Town pays certain medical and dental benefits for early retirees and life insurance benefits on behalf of its retired employees. The accrued benefit liability for post-employment benefits was determined by actuarial valuation as at December 31, 2016 using a discount rate of 4% (2015-4%). Defined benefit plan information: Accrued benefit obligation: Balance, beginning of year $ 412,500 $ 414,900 Current benefit cost 27,500 26,400 Interest 16,500 16,300 Benefits paid (35,200) (45,100) Balance, end of year 421, ,500 Unamortized actuarial gain 99, ,500 Accrued benefit liability, end of year $ 520,500 $ 517,000 Included in expenses is $5,300 ( $5,700) for amortization of the actuarial gain. The unamortized actuarial gain is amortized over the expected average remaining service life of 13 years. 12 Page 48 of 134

49 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Employee benefits and other liabilities (continued): The main assumptions employed for the valuation are as follows: Medical costs medical costs were assumed to increase in 2014 at 7% per year reducing 1% per year over 2 years; 5% per year thereafter. Dental costs dental costs were assumed to increase at 5% per year. 6. Liability for site remediation: The Town has provided for the remediation of four sites, based on monitoring costs provided by an external consultant. The future remediation costs have an estimated undiscounted cost of $2,660,000 ( $1,749,000). These costs are anticipated for a period from 5 to 50 years and have been discounted at a rate of 4% (2015-4%). 7. Deferred revenue: The deferred revenues including obligatory reserve funds reported on the consolidated statement of financial position are made up of the following: Development Charges Act $ 8,617,760 $ 7,854,731 Recreational Land Act 1,299,028 1,082,181 Aggregate Resources Act 610, ,075 Federal Gasoline Tax 275, ,603 Other deferred revenue (31,314) 140,646 Balance, end of year $ 10,771,507 $ 9,938,236 The continuity of obligatory reserve funds are summarized below: Balance, beginning of year $ 9,938,236 $ 9,766,768 Contributions from: Development Charges Act 1,835, ,031 Recreational land (the Planning Act) 196,291 86,579 Aggregate Resources Act 122,114 87,408 Federal Gasoline Tax 683, ,121 Interest earned 195, ,060 Total revenue 3,033,501 1,809,199 Transfer to revenue (2,200,230) (1,637,731) Balance, end of year $ 10,771,507 $ 9,938, Page 49 of 134

50 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Net long-term liabilities: (a) The balance of net long-term liabilities reported on the consolidated statement of financial position is made up of the following: The Town has assumed responsibility for the payment of principal and interest charges on certain long-term liabilities issued by other municipalities. At the end of the year the outstanding principal amount of this liability is $ 5,708,479 $ 3,147,820 Of the long-term liabilities shown above, the responsibility for payment of principal and interest charges for tile drainage, municipal drainage and shoreline property assistance loans has been assumed by individuals. At the end of the year the outstanding principal amount of this liability is (37,833) (21,652) $ 5,670,646 $ 3,126,168 (b) The annual principal repayments subsequent to December 31, 2016 are as follows: 2017 $734, , , , ,635 Thereafter 3,194,120 (c) The long-term liabilities in (a) issued in the name of the Town 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. (d) The Town is contingently liable for long-term liabilities with respect to tile drainage, municipal drainage and shoreline property assistance loans. The total amount outstanding as at December 31, 2016 is $37,833 ( $21,652) and is not recorded on the consolidated statement of financial position. 14 Page 50 of 134

51 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Net long-term liabilities (continued): (e) Total interest on net long-term liabilities which are reported on the consolidated statement of operations amounted to $134,398 in 2016 ( $87,689). The long-term liabilities bear interest at rates ranging from 1.66% to 8.00%. The interest on long-term liabilities assumed by the municipalities and school boards or by individuals in the case of tile drainage and shoreline property assistance loans are not reflected in these financial statements. (f) The Town has available a line of credit in the amount of $1,000,000 which bears interest at prime less 0.375%. There is no balance outstanding at December 31, Page 51 of 134

52 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Tangible Capital Assets: 2016 Land Buildings Linear Machinery Furniture Work in Land Improvements & Components Assets & Equipment & Fixtures Progress Total Cost Balance, beginning of year $ 16,095,370 $ 6,529,911 $ 29,133,496 $ 147,600,933 $ 9,798,769 $ 2,427,698 $ 1,120,800 $ 212,706,977 Additions (transfers) 142,147 19, ,238 8,100, , , ,929 9,560,462 Disposals (6,272) (1,352) (137,998) (1,596,175) (47,144) (110,230) - (1,899,171) Balance, end of year 16,231,245 6,547,711 29,399, ,105,636 10,117,442 2,671,769 1,294, ,368,268 Accumulated Amortization Balance, beginning of year - 1,592,669 8,897,783 70,833,073 5,088,599 1,053,997-87,466,121 Amortization Expense - 255, ,382 2,820, , ,819-4,841,032 Disposals - - (115,587) (832,878) (43,064) (109,604) - (1,101,133) Balance, end of year - 1,848,448 9,589,578 72,820,441 5,708,341 1,239,212-91,206,020 Net Book Value, end of year $ 16,231,245 $ 4,699,263 $ 19,810,158 $ 81,285,195 $ 4,409,101 $ 1,432,557 $ 1,294,729 $ 129,162,248 Page 52 of 134 Net Book Value, December 31, 2015 $ 16,095,370 $ 4,937,242 $ 20,235,713 $ 76,767,860 $ 4,710,170 $ 1,373,701 $ 1,120,800 $ 125,240,856 16

53 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Tangible capital assets (continued): (a) Assets under construction: Assets under construction have a value of $1,294,729 ( $1,120,800) and have not been amortized. Amortization of these assets will commence when the asset is put into service. (b) Contributed tangible capital assets: Contributed capital assets have been recognized at fair market value at the date of contribution. The value of contributed assets received during the year is $3,165,891 ( $ nil). (c) Tangible capital assets disclosed at nominal values: Where an estimate of fair value could not be made, the tangible capital asset was recognized at a nominal value. Land is the only category where nominal values were assigned. (d) Works of art and historical treasures: The Town manages and controls various works of art and non-operational historical cultural assets including buildings, artifacts, paintings and sculptures located at Town sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized. (e) Write-down of tangible capital assets: The write-down of tangible capital assets during the year was $ nil ( $ nil). 17 Page 53 of 134

54 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Accumulated surplus: The balance of accumulated surplus on the consolidated statement of financial position is made up of the following: Surplus: Invested in tangible capital assets $ 129,162,248 $ 125,240,856 Unfunded capital (362,547) (3,224,195) Operating surplus - BIA 7,485 10,993 Investment in Peninsula West Power Inc. 17,956,583 17,819,248 Unfunded: Long-term debentures (5,670,646) (3,126,168) Employee future benefits (769,788) (758,380) Liability for site remediation (1,085,111) (726,137) Other (880,886) (141,265) 138,357, ,094,952 Reserves set aside by Council: For working funds 1,475,000 1,475,000 For vehicle and equipment 2,989,775 2,628,830 For insurance 65,905 71,350 For election expenses 81,008 53,508 For storm sewers 3,000 3,000 For capital rate stabilization 577, ,432 For operating rate stabilization 511,007 1,111,121 For West Lincoln Memorial Hospital (note 15) 2,236,800 2,236,800 Total reserves 7,939,506 8,276,041 Reserve funds set aside for specific purpose by Council: For water main replacement 7,256,431 6,520,892 For wastewater main replacement 5,626,669 5,110,308 For museum building For buildings and facilities 1,100, ,355 For roadway 69, ,081 For skate park 6,490 6,151 For community improvement plan 150, ,956 For special capital purposes 186,054 6,876 Total reserve funds 14,396,228 12,836,063 Total $ 160,693,072 $ 156,207, Page 54 of 134

55 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Pledges: Pledges have been received for the construction of The Fleming Centre. Since pledges are not legally enforceable, they are recorded as revenue on a cash basis and accordingly are no recognized as assets in the consolidated financial statements. The total amount of pledges outstanding and the expected year of collection are as follows: , , , , ,000 Thereafter 10,000 $ 272, Trust funds: Trust funds administered by the Town amounting to $2,043,792 ( $1,987,476) have not been included in the consolidated statement of financial position nor have their operations been included in the consolidated statement of operations. 13. Pension agreements: The Town makes contributions to the Ontario Municipal Employees Retirement System (OMERS), which is a multi-employer plan, on behalf of 95 members of its staff and Council. 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. Contribution rates for 2016 were 9% for employees earning below the year s maximum pensionable earnings and 14.6% on earnings above the year s maximum pensionable earnings. The amount contributed to OMERS for 2016 was $610,302 ( $584,211) for current service cost and is included as an expenditure on the consolidated statement of operations. There are no outstanding obligations for past service at December 31, As OMERS is a multi-employer pension plan, any pension plan surpluses or deficits are a joint responsibility of all Ontario municipalities and their employees. The OMERS pension plan has a deficit of $5.7 billion as at December 31, 2016 ( $7 billion) based on an actuarial valuation of plan assets. 19 Page 55 of 134

56 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Contingent liabilities: From time to time, the Town is subject to claims and other lawsuits that arise in the ordinary course of business, some of which may seek damages in substantial amounts, including punitive or extraordinary damages. These claims may be covered by the Town s insurance up to a maximum of $50,000,000 per occurrence. Liability for these claims and lawsuits are recorded to the extent that the probability of a loss is likely and it is estimable. 15. Commitments: The Town has committed $2,236,800 to the West Lincoln Memorial Hospital Foundation for the purpose of construction of a new hospital. The amount was to be levied in the amount of $223,680 per year from 2003 to The amounts levied have been transferred to a reserve for the hospital. Payments will not be released from this reserve until construction is commenced and the payment is approved by Council. At December 31, 2016, the reserve has a balance of $2,236,800 ( $2,236,800). 20 Page 56 of 134

57 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Government transfers: The Town recognizes the transfer of government funding as expenses or revenues in the period that the events giving rise to the transfer occurred. The government transfers reported on the consolidated statement of operations are: Budget Revenue: Municipal grants: Region of Niagara $ 77,900 $ 169,364 $ 27,260 77, ,364 27,260 Provincial grants: Wage subsidies 17,047 3,420 23,823 Ontario Municipal Partnership Fund 422, , ,000 Senior Centre Long Term Care 32,000 40,317 32,000 Library 40,880 40,880 40,880 Museum 25,000 25,761 25,461 Healthy Kids Program - 13,000 - Ontario Community Infrastructure Fund 147, , , , , ,804 Federal grants: Federal gasoline tax - 613,014 1,073,914 Wage subsidies 5,000 19,372 7,006 Canada 150 Fund 67,500 67,502 - Building Canada Fund - (70,606) - 72, ,282 1,080,920 Total revenues $ 834,427 $ 1,491,764 $ 1,845,984 Expenses: Charitable and non-profit organizations $ 106,925 $ 132,556 $ 128,756 Total expenses $ 106,925 $ 132,556 $ 128, Page 57 of 134

58 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Segmented information: Segmented information has been identified based upon various operating departments within the Town and their activities are reported by functional area in the body of the financial statements. Certain operating departments along with the services they provide have been separately disclosed in the segmented information are as follows: (i) General Government - Mayor and Council, Corporate Services, Finance Services: The departments within General Government are responsible for the general management and control of the Town, including adopting bylaws, adopting administrative policy, levying taxes, providing administrative, technical, and financial services. They also ensure quality services are provided to the community and that the services provided are aligned with Council approved actions. (ii) Protection to Persons & Property - Fire Department, By-law Enforcement, Animal and Weed Control, Building Services: The Fire Department is responsible to provide fire suppression services, fire prevention programs, training and education related to prevention, detection or extinguishment of fires and emergency rescue services. By-law enforcement and animal and weed control are provided by the Office of the Town Clerk. The Building Department is responsible for permit processing and building inspections. (iii) Transportation Services Public Works: The Public Works Department is responsible for operations, infrastructure management (roads, bridges and culverts), traffic control, parking control, street lights and development engineering. (iv) Environmental Services - Wastewater, Storm Water Management, Waterworks: The Public Works Department is responsible for wastewater collection services, storm water management services and water distribution services. 22 Page 58 of 134

59 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Segmented information (continued): (v) Health Services - Cemeteries: The Sport, Recreation and Culture Department is responsible for the operation and maintenance of the Town cemeteries (vi) Social & Family Services - Assistance to Aged Persons: The Sport, Recreation and Culture Department is responsible for the operation and maintenance the Lincoln Centre, including services for seniors. (vii) Recreation and Cultural Services - Community Services, Library, Museum: The Sport, Recreation and Culture Department is responsible for the development, provision and maintenance of facilities, parks and recreation and cultural programs and services. The Lincoln Public Library provides the community with materials, programs and services to support and encourage informal life-long learning. The Jordan Historical Museum is a living and displaying museum that records the German-Mennonite history of the area. (viii) Planning & Development Services - Planning and Development, Business Improvement Area: The Planning and Development Department provides direction to Council and the community through land use policy formulation and implementation. With the support of the Town, the Beamsville Business Improvement Area board of management provides business promotion and improvement functions in downtown Beamsville. For each reported segment, revenues and expenses represent both amounts that are directly attributable to the segment and amounts that are allocated on a reasonable basis. Certain allocation methodologies are employed in the preparation of segmented financial information. Taxation is allocated to the segments based on the segment's budgeted net expenditure. User charges and other revenue have been allocated to the segments based upon the segment that generated the revenue. Government transfers have been allocated to the segment based upon the purpose for which the transfer was made. Development charges earned and developer contributions received were allocated to the segment for which the charge was collected. The accounting policies used in these segments are consistent with those followed in the preparation of the consolidated financial statements as disclosed in Note Page 59 of 134

60 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Segmented information (continued): 2016 General Government Protection to Persons & Property Transportation Services Environmental Services Health Services Social & Family Services Recreation & Cultural Services Planning & Development Services Total REVENUE Property taxation $ 2,266,095 $ 1,810,520 $ 4,981,281 $ 40,562 $ 102,869 $ 91,205 $ 3,661,697 $ 748,790 13,703,019 User fees 105, , ,475 4,603, ,107 13, , ,048 6,659,358 Government grants Municipal (2,365) - 131,086 40, ,364 Provincial 422, , ,317 83, ,118 Federal , , ,282 Investment income 339, ,497 Penalties and interest 549, ,537 Developer contributions , , ,500 90,072 1,414,307 Developer contributed assets 2-3,165, ,165,891 Peninsula West Engery Net Income 316, ,400 Sundry 39,741 (3,478) (592,563) (200,695) 20, ,138 3,500 (415,091) Total revenue 4,036,327 2,299,106 9,574,544 4,839, , ,752 4,965,763 1,136,410 27,224,682 EXPENSES Salaries, wages and employee benefit 1,656,522 1,439,467 2,010,294 1,053,865 97,153 30,850 2,762, ,460 $ 9,531,185 Purchased goods 892, ,385 2,356, ,610 50,571 83,383 1,310,514 83,679 5,966,158 Purchased services 257, , , , , ,675 1,915,476 Financial expenses 166,797 1,059 35,500 53, , ,258 Transfers to others 22, ,500 71,951 36, ,557 Amortization expense 300, ,871 2,412, ,483 1,545 16, ,291-4,841,032 Page 60 of 134 Total expenses 3,296,487 2,633,762 7,246,268 2,863, , ,676 5,326,669 1,089,265 22,738,666 Surplus (Deficit) $ 739,840 $ (334,656) $ 2,328,276 $ 1,975,643 $ 78,598 $ 12,076 $ (360,906) $ 47,145 $ 4,486,016 24

61 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Segmented information (continued): 2015 General Government Protection to Persons & Property Transportation Services Environmental Services Health Services Social & Family Services Recreation & Cultural Services Planning & Development Services Total REVENUE Property taxation $ 2,333,495 $ 1,707,977 $ 4,262,670 $ 42,124 $ 92,050 $ 91,915 $ 3,613,699 $ 600,524 12,744,454 User fees 62, , ,493 4,456,997 93,552 9, , ,435 6,171,596 Government grants Municipal 27, ,260 Provincial 468, , ,000 90, ,804 Federal - - 1,073, ,006-1,080,920 Investment income 270, ,805 Penalties and interest 542, , , ,704 Peninsula West Engery Net Income 551, ,650 Sundry 46,166 11,520 (565,890) - 22, ,380 - (206,754) Total revenue 4,302,444 2,078,268 5,344,584 4,499, , ,740 4,798, ,959 22,258,439 EXPENSES Salaries, wages and employee benefit 1,729,006 1,278,329 2,010, ,491 91,586 27,013 2,712, ,188 $ 9,193,151 Purchased goods 720, ,493 1,379,280 90,685 35,127 84,998 1,169,879 62,792 4,055,792 Purchased services 367, , , , , ,943 2,033,079 Financial expenses 60,119 1,629 32,925 19, , ,250 Transfers to others 15, ,500 70,495 41, ,756 Amortization expense 279, ,886 2,309, ,990 1,545 16, ,205-4,651,991 Total expenses 3,171,698 2,417,361 6,042,360 2,469, , ,454 5,030, ,423 20,229,019 Surplus (Deficit) $ 1,130,746 $ (339,093) $ (697,776) $ 2,029,492 $ 78,664 $ 3,286 $ (231,435) $ 55,536 $ 2,029,420 Page 61 of

62 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Consolidated Financial Statements Year ended December 31, Budget data: Budget data presented in these consolidated financial statements are based upon the 2016 operating and capital budgets approved by Council. The Town does not budget for amortization and, as a result, amortization is included based on actual cost. The chart below reconciles the approved budget to the budget figures reported in these consolidated financial statements. Budget Amount Revenue: Operating $ 27,783,589 Capital 10,590,800 Less: Transfers from other funds (5,302,745) Proceeds on debt issue (4,049,355) Reclassification between revenue and expenses (6,136,257) Total revenue 22,886,032 Expenses: Operating $ 27,783,589 Capital 10,590,800 Less: Transfers to other funds (4,546,054) Capital expenses (10,590,800) Debt principal payments (714,926) Reclassification between revenue and expenses (6,136,257) Add: Amortization of tangible capital assets 4,841,032 Other 2,355 Total expenses 21,229,739 Annual surplus $ 1,656, Page 62 of 134

63 KPMG LLP 80 King Street, Suite 620 St. Catharines ON L2R 7G1 Canada Tel Fax INDEPENDENT AUDITORS REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Town of Lincoln We have audited the accompanying financial statements of the trust funds of The Corporation of the Town of Lincoln, which comprise the statement of financial position as at December 31, 2016, and the statements of continuity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. KPMG Canada provides services to KPMG LLP. 27 Page 63 of 134

64 Opinion In our opinion, the financial statements present fairly, in all material respects, the statement of financial position of the trust funds of The Corporation of the Town of Lincoln as at December 31, 2016, and its results of operations and its changes in fund balances and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants, Licensed Public Accountants St. Catharines, Canada July 4, Page 64 of 134

65 THE CORPORATION OF THE TOWN OF LINCOLN Trust Funds Statement of Financial Position Year ended December 31, 2016, with comparative figures for 2015 Assets Estate of G.F. Tufford Cemetery (Mountain Estate of Care and Mennonite St. John s H.E Maintenance Cemetery) Cemetery Whipple Total Total Cash $ 106,699 $ 66,375 $ 44,533 $ 13,307 $ 230,914 $ 276,830 Investments, at cost 837, , , ,467 1,812,764 1,709,871 Accounts receivable , , , ,781 2,043,792 1,987,476 Liabilities and Fund Balances Fund balance 944, , , ,781 2,043,792 1,987,476 See accompanying notes to financial statements. 29 Page 65 of 134

66 THE CORPORATION OF THE TOWN OF LINCOLN Trust Funds Statement of Continuity Year ended December 31, 2016, with comparative figures for 2015 Estate of G.F. Tufford Cemetery (Mountain Estate of Care and Mennonite St. John s H.E Maintenance Cemetery) Cemetery Whipple Total Total Revenue: Care & maintenance $ 33,598 $ - $ 12,500 $ - $ 46,098 $ 29,376 agreements Interest earned 18,921 11,739 7,765 2,362 40,787 48,169 Proceeds receipts ,000 Total revenues 52,519 11,739 20,265 2,362 86,885 85,545 Expenses: Interest transferred to cemetery maintenance 16,547 3,720 8,402-28,669 30,126 Administration fees Grants for beautification ,150 1,150 1,150 Total expenses 16,547 3,720 9,152 1,150 30,569 32,026 Annual surplus 35,972 8,019 11,113 1,212 56,316 53,519 Fund balance, beginning of year 908, , , ,569 1,987,476 1,933,957 Fund balance, end of year $ 944,380 $ 587,474 $ 394,157 $ 117,781 $ 2,043,792 $ 1,987, Page 66 of 134

67 THE CORPORATION OF THE TOWN OF LINCOLN Trust Funds Statement of Cash Flows December 31, 2016 with comparative information for Cash provided by (used in): Operating activities: Annual surplus $ 56,316 $ 53,519 Change in non-cash assets and liabilities: Decrease in accounts receivable Net change in cash from operating activities 56,977 53,992 Investing activities: Decrease (increase) in investments (102,893) 132,231 Net change in cash from investing activities (102,893) 132,231 Net change in cash and short-term investments (45,916) 186,223 Cash, beginning of year 276,830 90,607 Cash, end of year $ 230,914 $ 276,830 Cash received for interest income $ 40,788 $ 48, Page 67 of 134

68 THE CORPORATION OF THE TOWN OF LINCOLN Notes to Trust Funds Financial Statements Year ended December 31, Significant accounting policies: The financial statements of the Trust Funds are prepared by management prepared in accordance with Canadian public sector accounting standards. Significant accounting policies adopted by the Trust Funds are as follows: (a) Basis of accounting: (i) (ii) Sources of financing and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they become available and measurable, expenses are recognized as they are incurred and measurable. (b) Investments are carried at cost, except if the market value of the investments become lower than cost and this decline is considered to be other than temporary, the investments are written down to their market values. 2. Investments: The total for investments of $1,812,764 ( $1,709,871) reported on the statement of financial position at cost, have a market value of $1,866,520 ( $1,722,858) at the end of the year. 32 Page 68 of 134

69 99»: Attention: Mayor Easton & Town of LmcolnCOUDCII c/o WnlllamKolasa, Director of Corporate Town of LIHCOII1 Service s 4800 South Service Road Beamsvllle, Ontario, LOR1B1 Dear Mayor Easton and members of the Council, Redstone Winery is proud to present Gordon Lightfoot concert to be held on August 27, 2017 on the grounds of Redstone WInery King Street in Beamsville This much anticipated outdoor event will run from 2 pm to 5 pm and feature the Iconic Canadian Gordon Lightfoot. The Restaurant at Redstone willbe showcasing our delicious offerings. We are expecting approximately 500 attendees. A signi?cant portion of attendees will be traveling from out of town, thus signi?cantly supporting the local economy through their patronage of local businesses such as B&B s, inns, hotels, restaurants, wineries, transportation services etc. In order to put on this event Redstone Winery secures the services of several local & regional businesses thus further boosting the local economy. We respectfully request the consideration of designating the "Gordon Lightfoot Concert as a "municipally signi?cant" event for the purpose of securing a Special Occasion Permit for that day. As required to secure our Special Occasion Permit: -Formal noti?cation to be provided to the Town of Lincoln,the Fire Department, Niagara Public Health Niagara Regional Policeand -The permit area will be delimited by fencing (0.9m) high. -Allfood stations will have submitted forms to Niagara Public Health Should you require u er II1 ormation, o not es: 2: e 0 contact us at your advance for your consideration. earliest convenience an you In Andy Sales aupre 4245KINDSIHEEI [OR Page 69 of 134

70 Lincoln Fire Rescue & Emergency Services 2016 HIGHLIGHTS and 2017 WORK PLAN Page 70 of 134

71 Department Functions Mandated fire inspection services (FPPA) Mandated public education services (FPPA) Emergency response services (FPPA) Mandated emergency planning services (EMCPA) Administrative services and regulatory compliance Communications and technology services Staff training and development Fleet, equipment, facilities Page 71 of 134

72 2016 Highlights New by-law to Establish & Regulate a Fire Department enacted in 2016 Appointed second Fire Prevention Officer/Public Educator Increased complement to 114 VFF (from 98) Public Fire Safety Education School visits, fire station tours, community events Fire Prevention Week open house Reached 4,041 children and 1,874 adults in 2016 Community engagement Social media Page 72 of 134

73 2016 Highlights Fire Prevention & Code Enforcement Home smoke alarm surveys 86% compliance in 2016 Vulnerable occupancies 28 facilities, 100% compliance Fire safety inspections 178 inspections in 2016 (up from 92 in 2015) Migrant farm worker housing 3 of 150+ properties inspected Plan reviews 23 reviews in 2016 (up from 13 in 2015) Inspection orders issues 41 orders in 2016 (up from 15 in 2015) Prosecutions 2 under Provincial Offences Act in 2016 (both awaiting trial) Page 73 of 134

74 2016 Highlights Emergency Service Delivery No fire fatalities or serious injuries in 2016 $23.8 million in property saved by firefighters (87% save rate) 758 responses in 2016 (5% increase) Reduction in no service medical assistance calls (medical calls down 29%) Increase in response times for first-arriving apparatus (average 10.0 min.) 100% compliance with NFPA 1720 deployment standard for Rural Areas 0% compliance with NFPA 1720 deployment standard for Suburban Areas 0% compliance with NFPA 1720 deployment standard for Urban Areas Page 74 of 134

75 2016 Highlights Cost Comparators Net Cost per Capita Municipality (including Amortization) West Lincoln $61 Grimsby $64 Pelham $72 Lincoln $82 Fort Erie $93 NOTL $111 Wainfleet $111 Port Colborne $155 St. Catharines $191 Thorold $203 Welland $208 Niagara Falls $233 Page 75 of 134 AVERAGE: $132

76 2017 Priorities Public Fire Safety Education & Community Engagement Residential Smoke / CO Alarm program target 100% compliance Align public education activities with demographic risk Increase presence in community Special events Quarterly fire station drop-in events Fire Prevention Week Open House Fun Event Increase community engagement Surveys, mail-outs, public outreach Implement Every contact is an opportunity philosophy Page 76 of 134

77 2017 Priorities Fire Prevention & Code Enforcement Open Air Fire By-Law revision Vulnerable Occupancy compliance Increase Migrant Worker Housing inspections Special Events inspections Process review Planning/Building/Fire coordination of approval process Planning and development plan reviews/approvals Page 77 of 134

78 2017 Priorities Emergency Service Delivery Community Risk Assessment vs. Standards of Cover Response times of first-arriving apparatus Depth of coverage - Adequate and timely deployment of appropriate resources Review response protocols for high-risk incidents Hazardous Materials Technical Rescue: High-Angle, Water/Ice, Building Collapse, etc. High Rise Medical Assistance response effectiveness Preservation of the volunteer firefighting model Compliance with legislation (FPPA, OHSA) and industry standards (NFPA) Page 78 of 134

79 2017 Priorities Staff Training & Development Training of 20 recruit volunteer firefighters to NFPA Firefighter 1 Training of 16 volunteer firefighters from 2016 cohort to NFPA Firefighter 2 Officer development: 2 new District Chiefs 6 new Captains 7 new Acting Captains Incident Command System training for all officers Fire Prevention training and development for FPOs and FPAs Partnering with Grimsby FD re: West Niagara Training Facility Page 79 of 134

80 2017 Priorities Fleet, Equipment, Facilities Accept delivery and commission new rescue-pumper (Station 1) Accept delivery and commission new tanker (Station 2) Commission new off-road rescue vehicle Build new Campden fire station Preliminary planning for new Vineland fire station Peer review Beamsville fire station location/service delivery Review EOC requirements and adequacy Page 80 of 134

81 2017 Priorities Emergency Preparedness Training IMS100, 200, 300 for SMT and EMT Emergency Plan review and revision Emergency Management By-Law review and revision EOC and back-up EOC readiness Annual Exercise multi-city exercise in Q Annual Compliance Page 81 of 134

82 Page 82 of 134 Questions?

83 Fire Rescue and Emergency Services TO: Finance and Administration Committee MEETING DATE: June 26, 2017 SUBJECT / REPORT NO: PREPARED BY: SUBMITTED BY: 2016 Fire Department Annual Report FD Greg Hudson Fire Chief ext. 253 Greg Hudson Fire Chief RECOMMENDATION: THAT report FD be received for information. EXECUTIVE SUMMARY: To ensure that the fire department operates effectively and efficiently in delivering its mission to provide fire protection services to the community, key performance indicators are continuously monitored and reviewed by staff. The information provided in the annual report is valuable for highlighting the successes of the department, and for identifying any areas where opportunities for improvement may exist. Alternatives for Consideration Not Applicable HISTORICAL BACKGROUND: Each year, an annual report is prepared to provide information on the activities and performance of Lincoln Fire Rescue & Emergency Services. FINANCIAL STAFFING LEGAL CONSIDERATIONS: Financial: Staffing: Legal: None None None RELEVANT CONSULTATION: Not applicable. Page 83 of 134

84 Report # FD Page 2 STAFF COMMENTS: The fire department s 2016 Annual Report is attached. The following are key highlights: Favourable: In addition to providing excellent service by responding to a wide variety of emergencies whenever called, Lincoln firefighters continued to demonstrate dedication and commitment to training, apparatus maintenance, and public education activities during the year. The costs to operate the fire department for the entire year was $82 per resident, which is the fourth lowest in the Niagara Region. Firefighters from all 4 fire stations continued to participate in a number of public fire safety education activities in Important fire safety messaging was delivered to 4,041 children and 1,857 adults at various events throughout the year. There were no fatalities or serious injuries due to fire in Lincoln in Changes to fire department medical assistance response protocols resulted in more effective and efficient provision of service at emergency medical assistance calls. The total value of property saved by the actions of firefighters was $23,814,500, which represents a save rate of 87%. Lincoln s firefighters attended an average of 105 hours of training each in 2016; 83% of the firefighters met the requirement to complete a minimum of 53 hours of training annually. The residential smoke alarm survey program was continued in Firefighters visited homes throughout the community to provide basic fire safety information, and to conduct voluntary checks for working smoke alarms. A compliance rate of 86% was observed. This was a marked improvement over the 2010 observed compliance rate of 79%. Unfavourable: The fire department responded to 758 emergency calls in This represents a 5% increase over the previous year. Response times for first-arriving fire apparatus meet standards. However, adequate depth of response continues to be a concern in the urban and suburban areas of Lincoln. Sufficient numbers of firefighters are not arriving on scene within an acceptable period of time in order to carry out critical rescue and fire suppression tasks safely and effectively. Page 84 of 134

85 Report # FD Page 3 ALTERNATIVES FOR CONSIDERATION: Not applicable. COMMUNICATION/ENGAGEMENT OVERVIEW: To inform the public, a copy of the 2016 Annual Report will be posted on the Town of Lincoln website. The report will also be disseminated to all fire stations in Lincoln. ALIGNMENT TO CORPORATE PLAN: This report is consistent with the Future Focus Corporate Plan to manage the Town so it protects the quality of assets, delivers services in an effective and efficient manner and encourages a working environment that creates opportunities for efficiencies in service delivery to ensure high value for all Lincoln taxpayers. ATTACHMENTS Annual Report Lincoln Fire Rescue and Emergency Services Page 85 of 134

86 2016 Annual Report Lincoln Fire Rescue & Emergency Services Page 86 of 134

87 Annual Report Contents Contents... 2 Message from the Fire Chief... 3 Mission Statement... 4 Community Facts... 4 Legislative Requirements... 5 Administration... 6 Fire Department Organization... 6 Staffing... 7 Fire Department Facilities and Apparatus... 8 Public Education... 9 Fire Safety Standards and Enforcement Emergency Response Fire Incident Statistics Training & Development Emergency Management Performance Measures Lincoln Fire Rescue & Emergency Services Page 87 of 134

88 2016 Annual Report 3 Message from the Fire Chief On behalf of the officers and firefighters of Lincoln Fire Rescue & Emergency Services, I am pleased to submit the fire department annual report for This report offers insight into your fire department s efforts, challenges, and accomplishments over the year, and allows readers to gain an understanding of the programs and services we provide to our community Fire Prevention Week Open House To Mayor Sandra Easton and Members of Council: The Lincoln Fire Rescue and Emergency Services team is made up of a talented and diverse group of dedicated men and women from all walks of life, who each contribute their own unique skills, abilities, and perspectives to the common goal of making the Town of Lincoln a safer place. As you will see in this report, your fire department provides an effective and efficient service to the community. We continually strive to preserve the volunteer model in order to meet our legislated obligations in innovative ways for the taxpayers of this municipality. I would like to thank each member of Council for your support throughout the year. I appreciate that ultimately Council determines the level of service that we provide, and that Council recognizes the important role we play in making this a safe community in which to live, work, and visit. We look forward to your continued support in the years to come. Respectfully, Greg Hudson Fire Chief Lincoln Fire Rescue & Emergency Services Page 88 of 134

89 Annual Report Mission Statement The mission of Lincoln Fire Rescue & Emergency Services is to directly deliver fire suppression, public fire safety education, fire prevention, emergency rescue, and medical tiered response services to Town of Lincoln residents, property owners and the general public in order to minimize/prevent loss of life, injury and damage to property Community Facts Lincoln Fire Rehab Unit Population of 23,787 (2016 Census); 5.8% population increase from the 2011 Census. Land area of 163 square kilometres. Overall population density of persons per square kilometre. Greatest urban population density in Lincoln of 1,711 persons per square kilometre (2011 Census: Census Tract No , Urban DAs Beamsville urban area north of King Street). Total of 8,934 private dwellings (2016 Census). Four fire stations, 114 volunteer firefighters providing emergency response. Lincoln Fire Rescue & Emergency Services Response District Map Lincoln Fire Rescue & Emergency Services Page 89 of 134

90 2016 Annual Report 5 Legislative Requirements In the Province of Ontario, the relevant legislation that pertains to the operation of municipal fire departments is the Fire Protection and Prevention Act, 1997 which mandates: "every municipality shall establish a program in the municipality which must include public education with respect to fire safety and certain components of fire prevention, and provide such other fire protection services as it determines may be necessary in accordance with its needs and circumstances. Fire Safety 3 Lines of Defence The Office of the Fire Marshal and Emergency Management developed the Comprehensive Fire Safety Effectiveness Model which identifies three lines of defence for establishing appropriate fire safety provisions in accordance with local community needs: 1. Public Education Educating residents of the community on means for them to fulfill their responsibilities for their own fire safety is a proven method of reducing the incidence of fire. Only by educating residents can fires be prevented and can those affected by fires respond properly to save lives, reduce injury and reduce the impact of fires. 2. Fire Safety Standards and Enforcement Ensuring that buildings have the required fire protection systems, safety features, including fire safety plans, and that these systems are maintained, so that the severity of fires may be minimized. 3. Emergency Response Providing well trained and equipped firefighters directed by capable officers to stop the spread of fires once they occur and to assist in protecting the lives and safety of residents. This is the failsafe for those times when fires occur despite prevention efforts. The ultimate goal of every fire department is to prevent fire from occurring before it starts. Establishing programs and providing resources to effectively implement the first and second lines of defence can be an effective strategy to minimize the need for the third line of defence. By-law to Establish a Fire Department Council is ultimately responsible for establishing the level of service provided by the municipal fire department in accordance with the Fire Protection and Prevention Act. In 2016, Council enacted a revised By-Law to Establish and Regulate a Fire Department. By-Law No formally establishes a fire department for the Town of Lincoln, sets out the parameters by which it operates, and specifies the services it will provide. Lincoln Fire Rescue & Emergency Services Page 90 of 134

91 Annual Report Administration Fire Department Organization Lincoln Fire Rescue & Emergency Services Page 91 of 134

92 2016 Annual Report 7 Staffing The full-time staff members who work from the fire department administration offices are: Fire Chief: Greg Hudson (28 years of service) Deputy Fire Chief: Bill Blake (21 years of service) Fire Prevention Officer: Trevor Doomernik (7 years of service) Fire Prevention Officer: Tamara Clark (4 months of service) Appointments We welcomed the following new members in 2016: Fire Prevention Officer Tamara Clark (Headquarters) Probationary Firefighter Jim Borsodi (Station 1) Probationary Firefighter Matt Harris (Station 1) Probationary Firefighter Nick Chovaz (Station 1) Probationary Firefighter Mike Howarth (Station 1) Probationary Firefighter Trevor Doomernik (Station 1) Probationary Firefighter Derrick Fiss (Station 1) Probationary Firefighter Jake Hamm (Station 2) Probationary Firefighter Gord Scott (Station 2) Probationary Firefighter Corbin Ouwendyk (Station 3) Probationary Firefighter Josh Blain (Station 3) Probationary Firefighter Chris Schuurman (Station 3) Probationary Firefighter Matt Tigchelaar (Station 3) Probationary Firefighter Dave Bertrand (Station 3) Probationary Firefighter Ivan Fredette (Station 4) Probationary Firefighter Cody Deveau (Station 4) Probationary Firefighter Loring Wiley (Station 4) Retirements The following members retired in 2016 after serving 10 years or more: Firefighter Jeff High (Station 1) 24 years of service Resignations The following members resigned in 2016 after serving less than 10 years: Firefighter Chris Bartley (Station 1) 8 years of service Awards The following members were recognized in 2016 for their achievements: Captain Dale Hatch (Station 1) 30 years of service Captain Brad Wellings (Station 1) 25 years of service Firefighter Ron Schmidt (Station 4) 25 years of service Deputy Chief Bill Blake (Headquarters) 20 years of service Firefighter Bill Cole (Station 4) 20 years of service Lincoln Fire Rescue & Emergency Services Page 92 of 134

93 Annual Report Fire Department Facilities and Apparatus Fire Department Administrative Offices 4800 South Service Road, Beamsville: Car 601 FS Ford Interceptor Utility, Fire Chief Command Vehicle Car 602 FS Ford Interceptor Utility, Deputy Command Vehicle Car 603 FS Ford F250, Fire Prevention/Duty Officer Vehicle Car 691 FS Ford Expedition, Fire Prevention Vehicle Fire Station Ontario Street, Beamsville: Pump 611 FS Spartan/Almonte, Pumper-Rescue Truck Aerial 615 FS Spartan/Smeal, 30 metre Aerial Platform Truck Tanker 616 FS Kenworth/Midwest, 11,000 litre Water Tanker Truck Squad 618 FS Ford/Wilcox, Medical Response/Brush Fire Unit Fire Station Fly Road, Campden: Pump 621 FS Freightliner/Superior, Pumper Truck Tanker 626 FS GMC/Almonte, 9,000 litre Water Tanker Truck Squad 628 FS Ford/Wilcox, Medical Response/Brush Fire Unit Fire Station Tallman Drive, Vineland: Pump 631 FS Spartan/Smeal, Pumper-Rescue Truck Rescue 637 FS Spartan/Dependable, Heavy Rescue Truck Niagara EMS Ambulance (Owned and operated by Region of Niagara) Fire Station Nineteenth Street, Jordan: Pump 641 FS HME/Almonte, Pumper-Rescue Truck Tanker 646 FS Kenworth/Midwest, 11,000 litre Water Tanker Truck Squad 648 FS Ford/Wilcox, Medical Response/Brush Fire Unit Rehab 649 FS Freightliner/Horton, Rehab Unit Pump 642 FS Spartan/Almonte, Pumper-Rescue Strategic Reserve Quarry Road Storage: Pump 1A 1960 International/Thibault, Antique Pumper Parade Truck Station 4 Apparatus On Display Lincoln Fire Rescue & Emergency Services Page 93 of 134

94 2016 Annual Report 9 Public Education Lincoln s firefighters continued to demonstrate a strong commitment to public fire safety education in The Fire and Life Safety Education (FALSE) Committee is comprised of representatives from all four fire stations and coordinated by the Fire Prevention Officer. The committee s mandate is to develop a standardized fire safety education curriculum, and to coordinate the delivery Public Fire Safety Education - Future Firefighter? of quality fire and life safety programs in the Town of Lincoln. Two members of the fire department are Certified Public Fire and Life Safety Educators through the Office of the Fire Marshal and Emergency Management. Volunteer firefighters participated in 24 public education events, and logged a total of 378 hours in Fire safety education was delivered to a total of 4,041 children and 1,874 adults at various events throughout the year. School Lectures School lectures are an effective way to provide fire safety education to children. Lincoln firefighters visited the following schools in 2016: 20 Valley Public School Ebenezer Christian School Jordan Christian School St. Edward School St. John School Senator Gibson School Fire Station Tours The fire department provides fire station tours upon request to school children, citizens, and community groups. During each station tour, visitors are provided with important fire safety information, are given the opportunity to take a closer look at the fire trucks and equipment and understand how they are used, and are able to ask firefighters questions relating to fire safety concerns. Lincoln Fire Rescue & Emergency Services Page 94 of 134

95 Annual Report Community Events Lincoln Fire Rescue & Emergency Services welcomes the opportunity to assist local groups at community events in order to interact with residents and visitors, and to provide fire safety education to the public in support of our legislated mandate. Lincoln firefighters attended a number of community events in 2016, such as: Beamsville Lions Easter Egg Hunt Town of Lincoln Touch a Truck Rotary Club Stand By Me program Calvary Church Summer Camp, Town of Lincoln Summer Camp Canada Day festivities at Charles Daley Park, Niagara Children s Water Festival, Balls Falls Miracle on King Street These events allow informal opportunities to answer questions that citizens may have about the fire department or fire safety, and give the public a closer look at the fire trucks and equipment. Fire Prevention Week On the evening of October 8, 1871, a small fire started in the barn of Mr. and Mrs. O'Leary of Chicago. Aided by strong winds, the fire spread rapidly through the predominantly wooden structures of Chicago. When the fire was finally brought under control on the following day, 250 people had lost their lives, 100,000 were left homeless, and 17,400 structures were destroyed. Thereafter, on each October 9th, the fire was commemorated in Chicago with parades and ceremonies. In 1911, The Fire Marshals Association of North America officially declared that date as Fire Prevention Day. Ontario became the first jurisdiction to observe Fire Prevention Week during week in which October 9th falls. In 2016, Fire Prevention Week occurred from October 9 to 15. The theme was: Don t Wait Check the Date! Replace Smoke Alarms Every 10 Years A Fire Prevention Open House was held at Fire Station 1 which included a number of displays, demonstrations, children s activities, a barbeque, and a visit from Sparky the fire Safety Dog. Media Resources Lincoln Fire Rescue & Emergency Services uses various methods to communicate fire safety messaging and fire department programs and activities. Local newspapers are used to promote fire safety throughout the year. Lincoln continues to partner with our neighbouring fire departments in order to share costs for newspaper advertising. Lincoln Fire Rescue & Emergency Services Page 95 of 134

96 2016 Annual Report 11 Swing Into Summer Safety Campaign Lincoln Fire Rescue & Emergency Services participated in the Swing into Summer fire safety campaign again in Ontario s fire services teamed up with the Toronto Blue Jays Baseball Team and the Fire Marshal s Public Fire Safety Council for this campaign which is aimed at improving public safety in Ontario by educating and raising awareness with school-age children and their families about fire safety and other injury prevention tips over the summer. Baseball cards of Toronto 2016 Public Education Campaign Blue Jays players printed with fire safety messages were distributed at each fire station and at the administration offices at Town Hall. Fire Station Message Signs Each Lincoln fire station is equipped with an illuminated sign. Fire safety messages are regularly displayed providing relevant seasonal tips, along with community event information. Social Media The fire department maintains content on the Town of Lincoln corporate website. A variety of fire safety and fire service information is available to the public. In 2016 the fire department continued to use its a Twitter account to post information to the public regarding fire safety messaging, community events, fire department activities, and emergency notifications. Residential Smoke Alarm Survey Firefighters continued the residential smoke alarm survey program in This program involves firefighters visiting each home in a selected area to check for working smoke alarms, conducting a voluntary smoke alarm inspection, and providing fire safety education materials to the residents. Working smoke alarms in compliance with the Ontario Fire Code were found in 86% of the homes that were inspected in This was a slight decrease over 2015 when there was a 90% compliance rate, but a great improvement over 2010 when a smoke alarm compliance rate of only 79% was observed, however it was less than the 100% desired. The residential smoke alarm survey program will be continued in 2017 with a goal to achieve 100% compliance throughout the Town of Lincoln. Lincoln Fire Rescue & Emergency Services Page 96 of 134

97 Annual Report Fire Safety Standards and Enforcement Fire Prevention Officers are responsible for fire prevention, public education and fire investigation services in the Town of Lincoln. These initiatives are accomplished by enforcement of various codes, performing fire safety inspections, dealing with mandated code compliance issues, enforcing municipal by-laws, issuing and approval of various permits, review and approval of construction plans, site plans and subdivision agreements. Fire Extinguisher Inspection On a daily basis, our Fire Prevention Officers conduct fire safety inspections, retrofit inspections, review of fire safety plans, site development plans, new construction plans, public education, investigations of fire safety complaints, and investigations of fires and explosions. Many fire safety inspections were conducted upon request, such as potential purchasers of properties, law firms, mortgage companies, day care centres, and for liquor licenses. Fire Prevention Officers are also responsible for the administration of open air burning permits, fireworks sales permits, and fireworks and pyrotechnics display permits, and the inspection of such sites as required. Lincoln Fire Rescue and Emergency Services has a commitment to educate owners of their legislated responsibilities under the Ontario Fire Code. Every effort is made to assist owners in achieving compliance. Where infractions or life safety concerns are observed, Inspection Orders are generally the preferred avenue by which to achieve compliance. There are times, however, when owners are unwilling or unable to comply, or where there has been a violation that has resulted in injury, substantial property loss, or serious threat to life. In such instances, prosecution through the Courts is necessary to uphold public safety. The vast majority of property owners in Lincoln readily take appropriate actions to comply with Fire Code regulations. However, in 2016 it was necessary to prosecute two property owners. As of the end of 2016, those cases are still before the courts. Fire safety planning and plans review are also important functions of the Fire Prevention Officers. Fire Safety Plans are required by law and provide procedures for dealing with the various aspects of fire safety relating to a specific building or property. When designed and implemented correctly, Fire Safety Plans can significantly reduce the risk and impact of fire to improve safety in the facility. Lincoln Fire Rescue & Emergency Services Page 97 of 134

98 2016 Annual Report 13 Vulnerable Occupancies A vulnerable occupancy is a facility that houses persons who, because of physical or cognitive limitations, require assistance to evacuate in the event of a fire, such as retirement homes, nursing homes, group homes, and care and treatment facilities. After a number of fires that resulted in the loss of a number of lives of elderly and vulnerable citizens, and subsequent recommendations by several Coroner s Inquests, significant regulatory changes came into effect in Ontario in 2014 to improve fire safety in vulnerable occupancies. There were total of 28 vulnerable occupancies located in the Town of Lincoln in 2016 for which the fire department was mandated by law to apply and enforce the new Fire Code regulations. Lincoln Fire Rescue & Emergency Services was able to comply with all of its legislated requirements pertaining to vulnerable occupancies before the December 31, 2016 deadline. Migrant Farm Worker Housing Many local farming operations depend on the assistance of migrant workers. Farmers are required to provide suitable housing for the migrant workers during their stay in Canada. Federal regulations require that migrant worker housing be inspected and approved to ensure that basic health and safety standards are maintained, including compliance with the Fire Code. There are over 150 buildings identified as migrant farm worker accommodations in Lincoln which house approximately 1,000 seasonal workers each year. The fire department does not currently have the resources to inspect all migrant farm worker accommodations each year. Therefore, a plan to complete a joint inspection with a public health inspector over a 4 to 5 year schedule was implemented. Despite the schedule, as required by Fire Protection and Prevention Act, a fire safety inspection will be conducted in response to a complaint, or if a serious fire safety issue is discovered. In 2016, only 3 migrant farm worker accommodations were inspected due to conflicting priorities with respect to mandatory inspections of vulnerable occupancies and Fire Code enforcement priorities. TAPP-C While children s curiosity about fire is natural, inappropriate fire behavior can be dangerous. Fire is a leading cause of death among children in the home. Experts estimate that 50% of all arson fires are started by juveniles. About 50-60% of fires set by children are motivated by curiosity. For the remainder, however, child fire-setting can be a symptom of serious problems. Lincoln Fire Rescue & Emergency Services Page 98 of 134

99 Annual Report In Niagara Region, The Arson Prevention Program for Children (TAPP-C) was established to assist in determining why a particular child is involved in fire-setting, and to provide for appropriate treatment and follow-up. Lincoln Fire Rescue & Emergency Services participates in the Niagara TAPP-C Committee, which brings together fire services, mental health professional, police, school boards, and other agencies to help families deal with children and teens involved in fire setting. Fire service personnel educate children and their families about fire and how to develop good fire safety practices. Mental health professionals assess the risk of continued fire involvement and help children and their families deal with problems that contribute to the fire setting. The TAPP-C program is voluntary, free of charge and is available to children from 2 to 17 years of age. Fortunately, no children in Lincoln were referred to the TAPP-C program in Fire Safety Inspections There are several different types of fire safety inspections. A complaint inspection may be initiated by an occupant of a building, member of the public or other party who believes that there is infraction of the Ontario Fire Code or other fire safety concern. The fire department is required by law to deal with any such complaint received. A requested inspection is initiated typically by a property owner or agent in order to verify that a building is in compliance with the Ontario Fire Code, and that there are no fire concerns evident. Such an inspection is often requested for due diligence purposes by the owner, such as when a property is purchased or sold, and for insurance coverage and mortgaging purposes. In accordance with the Town of Lincoln Fees and Charges By-Law, there is a fee charged to conduct a requested inspection. A licensing inspection is a type of requested inspection by a party that requires a fire safety inspection in order to obtain some sort of licence or permit, such as a liquor licence or a fireworks permit. There is a fee for a licensing inspection. A post-fire inspection is conducted in a building in which a fire has occurred to determine whether or not Fire Code infractions may have contributed to the cause or severity of the fire, and to identify fire safety concerns and Fire Code infractions that may pose a threat to occupants returning to the building after the fire. The provision of complaint and requested inspections is considered to be the absolute minimum inspection program that a municipal fire service must provide in meeting their responsibilities under the Fire Protection and Prevention Act. Adopting this minimal approach to fire safety inspections could be perceived as providing a purely reactive service to the community. Lincoln Fire Rescue & Emergency Services Page 99 of 134

100 2016 Annual Report 15 A routine inspection is a fire safety inspection initiated by the fire department as a proactive approach to fire safety. Generally, for an effective routine inspection program a risk assessment of the municipality s building stock must be maintained. A periodic inspection schedule should then be established to conduct inspections at a frequency that is appropriate to the inherent risk associated with each class of building. The following table summarizes fire inspection activity over the past several years: Fire Inspection Type Complaints (Public, occupant, etc.) Requested (Property owner/agent) Routine (Fire department initiated) Migrant Farm Worker Housing Vulnerable Occupancy Inspection Vulnerable Occupancy Fire Drill Licensing/Permits Post-Fire (For code compliance) New Construction/Demolition Follow Up Consultation/Other TOTAL INSPECTIONS: Lincoln Fire Safety Inspections By Type As can be seen, inspections Vulnerable Care Occupancies represented a substantial portion of the Fire Prevention Officers workload. The appointment of a second full-time Fire Prevention and the implementation of a new Fire Prevention Assistant program using specially trained firefighters to assist with routine fire prevention duties allowed the Fire Department to complete nearly double the number of fire safety inspections in 2016 as were completed in the previous year. Lincoln Fire Rescue & Emergency Services Page 100 of 134

101 Annual Report The following table and chart illustrate the number of inspections completed by occupancy type: Group C (Residential) 19% Group B (Institutional) 53% Group D (Business/Services) 4% Group E (Mercantile) Group F (Industrial) 6% Group A (Assembly) 13% 2016 Fire Safety Inspections By Occupancy In addition to fire inspections, the following table summarizes other fire prevention activities: Fire Prevention Activity Plans Examinations Fire Safety Plan Reviews File Search/Property Information Requests Fire Investigations (Origin/Cause) Inspection Orders Issued Tickets Issued Court Prosecutions - POA Part III Public Education TAPP-C Cases (Child Arson Prevention) Risk Assessment Activities Summary of Other Fire Prevention Activities Lincoln Fire Rescue & Emergency Services Page 101 of 134

102 2016 Annual Report 17 Emergency Response Lincoln Fire Rescue & Emergency Services provides emergency response services with 12 frontline apparatus out of 4 fire stations strategically located throughout the town. The statistical information contained in this section is a summary of the activities of the fire department for the year ending December 31, Fire Department Responses Lincoln Fire Rescue & Emergency Services responded to a total of 758 incidents in This represents a 5% increase over the previous year. At 190 responses in 2016, medical assistance calls continue to represent the greatest proportion of fire department responses. However, due to changes in response protocols implemented in May 2016 to reduce the number of medical assistance calls at which firefighters were not required to provide a service, the number of medical assistance calls decreased 29% over the previous year. The following chart illustrates the distribution of fire department responses in 2016: Open Air Burning Complaints 7% Public Hazard/Hazardous Materials 4% Cancelled/Not Found 7% Carbon Monoxide 6% Assistance 4% Medical 25% Fires 11% Rescue 19% False Alarms 17% 2016 Fire Department Responses by Incident Type Lincoln Fire Rescue & Emergency Services Page 102 of 134

103 Annual Report Annual Response Data Using historical call response data and Census population statistics, it is possible to project a trend line to predict future demands for service. The following chart illustrates a 10 year projection of annual responses: # of Calls Population 35,000 30,000 Fire Department Responnses ,000 20,000 15,000 Population ,000 Annual Fire Department Responses vs. Population Growth 10 Year Projection Emergency Responses By Fire Station The following table summarizes the number of responses per fire station: Fire Station 2016 Average Per Month + / Station 1 - Beamsville % Station 2 - Campden % Station 3 - Vineland % Station 4 - Jordan % Annual Emergency Responses per Fire Station Lincoln Fire Rescue & Emergency Services Page 103 of 134

104 2016 Annual Report 19 Fire service experience has shown that it can be difficult to sustain an entirely volunteer fire suppression force as the call volume exceeds approximately 500 responses per year. Increasing response demands at Station 1 are cause for concern, and are being monitored closely. Response Times An understanding of the impact of time on fire growth is essential when determining fire department response time standards. The Fire Progression Curve graph (below) illustrates the rapid, exponential increase in temperature over a very short period of time. A flashover occurs when the temperature in an enclosed area (e.g. inside a room of a building) reaches sufficient temperature to cause all contents to simultaneously and violently ignite. A flashover is generally considered unsurvivable by anyone within the area. If fire department intervention does not occur within 3 to 10 minutes (i.e. before flashover), the fire will likely spread throughout the building, and there is a significantly reduced potential for occupant survival and increased potential for major damage and/or total loss of property. In Lincoln, fire suppression duties are provided entirely by volunteer firefighters, who must first respond to their stations from home or place of work in their personal vehicles upon notification of an alarm, don firefighting equipment, and respond to the incident scene in the fire apparatus. Lincoln Fire Rescue & Emergency Services Page 104 of 134

105 Annual Report The following table depicts the average fire department response times for first-arriving fire apparatus: Fire Station Station 1 - Beamsville * Station 2 - Campden Station 3 - Vineland Station 4 - Jordan OVERALL: *Station 1 closed for renovations in Pump 1 and Aerial 1 responded from Town Hall Average Response Times (minutes) With the exception of Station 1, the average response times for each fire station increased in There has been an overall trend of increasing response times each year since Fireground Staffing and Deployment NFPA 1720 Standard It is not only essential for firefighters to respond to fires in a timely manner, but it is equally important that sufficient numbers of firefighters are deployed to each fire scene in order to carry out critical rescue and fire suppression tasks safely and effectively. The relevant standard to the operation of a volunteer fire service is the National Fire Protection Association (NFPA) 1720 Standard for the Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations and Special Operations to the Public by Volunteer Fire Departments. Because volunteer fire departments deploy differently than full-time departments, NFPA 1720 provides detailed staffing and deployment criteria specifically for volunteer fire services. Specifically, volunteer firefighters must first proceed to their fire station to obtain the fire apparatus before responding to the emergency. As a result, this assembly time becomes a component of the overall response time which full-time fire departments are not subject to. By contrast, NFPA 1710 is the standard that applies to full-time fire departments, and specifies a different set of deployment criteria. NFPA 1720 specifies that Table (shown below) shall be used by the Authority Having Jurisdiction (AHJ) to determine staffing and response time objectives for structural firefighting, based on a typical 2000 ft 2 (186 m 2 ), two-story, single-family home. Lincoln Fire Rescue & Emergency Services Page 105 of 134

106 2016 Annual Report 21 Demand Zone Demographics Minimum Staff to Respond Response Time (minutes) Meets Objective (%) Urban Area Suburban Area Rural Area >1000 people/mi 2 (>386 people/km 2 ) people/mi 2 ( people/km 2 ) <500 people/mi 2 (<193 people/km 2 ) Remote Area Travel distance 8 mi (Travel distance 13 km) 4 Directly dependent on travel distance 90 Special Risks Determined by AHJ Determined by AHJ based on risk Determined by AHJ 90 NFPA 1720 Table Staffing and Deployment Requirements NFPA 1720 STAFFING & DEPLOYMENT Urban Area (>386 people/km 2 ) Minimum of 15 Firefighters required on scene within 9 minutes Ventilation (2) Back-Up/ Exposures (2) Single Family Dwelling 2000 ft 2 (186 m 2 ) Hydrant Area Aerial Operator (1) Entry Fire Attack (2) Entry - Rescue (2) Rapid Intervention Team (2) Pump Operator (1) Safety Officer (1) Incident Command (1) NFPA 1720 Firefighter Deployment Illustration (Urban Area) Water Supply (1) Lincoln Fire Rescue & Emergency Services Page 106 of 134

107 Annual Report Firefighter Turnout In order to meet critical firefighter deployment requirements, it is essential that an adequate number of firefighting personnel respond to each call. None of Lincoln s fire stations is staffed with firefighters on a full-time basis. Rather, volunteer firefighters are alerted via pagers, who must then respond to their assigned station in their personal vehicles and proceed to the emergency with the fire apparatus. The following table summarizes the average firefighter turnout per call for each station: Fire Station Minimum Required Station 1 - Beamsville Station 2 - Campden Station 3 - Vineland Station 4 - Jordan TOTAL DEPLOYMENT: Average Lincoln Firefighter Deployment per Incident Firefighter turnout tends to vary significantly depending on the time of day, day of the week, vacation times, and other factors. Weekdays during working hours pose a particular challenge because of the number of volunteer firefighters who either work out of town, or are unable to leave their place of employment to respond to calls. The NFPA 1720 standard recognizes that several factors, such as demographics and travel distances, affect fire service delivery. As such, NFPA 1720 establishes a number of demand zones that reflect the specific characteristics between and within each municipality. Using population density data from Statistics Canada, it was determined that the Town of Lincoln is comprised of several distinct areas that can each be classified as either an Urban Area, Suburban Area, or Rural Area demand zone in accordance with Table There are no areas that would be classified as a Remote Area in Lincoln. The following table depicts the various demand zones within the Town of Lincoln, and associates them to the fire response zones utilized by the fire department. Lincoln Fire Rescue & Emergency Services Page 107 of 134

108 2016 Annual Report 23 Fire Response Zone Area Demand Zone (NFPA 1720) Population Density (people/sq. km) NFPA 1720 Minimum Staff to Respond NFPA 1720 Response Time (minutes) 1 Beamsville Urban Area (North) Urban 1, A Beamsville (Rural north of King St.) Rural Beamsville Urban Area (South) Urban 1, A Beamsville (Rural south of King St.) Rural Vineland (Rural east of Cherry Ave.) Rural Vineland Urban Area Urban 1, P Vineland - Prudhommes Urban Urban A Vineland (Rural) Rural Vineland (Rural south of King St.) Rural Jordan Urban Area Suburban A Jordan (Rural) Rural Campden (East- Includes Village) Rural Campden (West) Rural Lincoln NFPA 1720 Demand Zones (Population Density Source: 2011 Census) The following table summarizes NFPA 1720 performance to working structure fires in 2016: Demand Zone Total Working Structure Fires In 2016 Fire Calls Met NFPA 1720 Met NFPA Response Objective (%) Average Response Time of First-In Unit (mins.) Average # of FF Arrived Within NFPA Response Time NFPA Minimum Staff Required At Scene Average Time to Meet NFPA Staffing (mins.) NFPA Allowable Response Time With Min. Staff (mins.) Urban 5 0 0% Suburban 1 0 0% Rural % NFPA 1720 Response Performance Summary (2016) Lincoln Fire Rescue & Emergency Services Page 108 of 134

109 Annual Report Urban Area Performance Of the 5 structure fires within urban areas in Lincoln, the response objective of deploying 15 firefighters within 9 minutes was not achieved in NFPA 1720 specifies that the response objective should be met 90% of the time in urban areas. Although the average response time of the first arriving apparatus to a structure fire in an urban area was 8.5 minutes, sufficient depth of response to safely and effectively carry out critical rescue and fire suppression tasks was not attained until 14.5 minutes on average. This exceeds the NFPA 1720 standard by an average of over 5 minutes, which could impair the ability of firefighters to successfully effect a rescue, and could result in substantially more property loss. On average, 6 firefighters were deployed to fires in urban areas within the NFPA 1720 standard s 9 minute response criteria. Having fewer than the required 15 firefighters at the scene of a fire increases the risk of firefighter injury and may impair operational effectiveness. Suburban Area Performance Of the 1 structure fire within the suburban area in Lincoln, the response objective of deploying 10 firefighters within 10 minutes was not achieved in NFPA 1720 specifies that the response objective should be met 90% of the time in urban areas. Only 1 firefighter was deployed to the fire in the suburban areas within the NFPA 1720 standard s 10 minute response criteria. Having fewer than the required 15 firefighters at the scene of a fire increases the risk of firefighter injury and may impair operational effectiveness. It required 10.7 minutes to achieve the minimum deployment of 10 firefighters. Rural Area Performance Of the 9 structure fires within rural areas, the response objective of deploying 6 firefighters within 14 minutes was achieved 100% of the time. NFPA 1720 specifies that the response objective should be met 80% of the time in rural areas. Because rural areas have smaller population densities, and longer response distances from a fire station, the ability of a fire department to deploy sufficient resources in time to effectively carry out offensive interior rescue and fire suppression operations is significantly reduced. As such, the staffing requirements to carry out defensive firefighting operations are considerable less. The average response time of the first arriving apparatus to a fire in a rural area was 9.3 minutes. Sufficient depth of response was attained at 10.7 minutes on average, which is within the NFPA 1720 criteria. An average of 15 firefighters was deployed to fire scenes within the 14 minute response criteria, where the NFPA standard specifies a minimum of 6 firefighters. Lincoln Fire Rescue & Emergency Services Page 109 of 134

110 2016 Annual Report 25 Fire Incident Statistics Fortunately, there were no fire fatalities or persons seriously injured due to fire in the Town of Lincoln in In 2016, the total loss due to fire was $3,519,500. This represents an increase from the 2016 fire loss of $1,560,410. The total value of property saved by the actions of Lincoln firefighters in 2016 was $23,814,500. When compared with the property loss due to fire in 2016, this represents a 87% save rate. The following chart illustrates vehicle and structure fire losses in recent years: $4,000,000 $3,500,000 $3,000,000 Annual Fire Loss $2,500,000 $2,000,000 $1,500,000 Vehicles Buildings $1,000,000 $500,000 $ Annual Property Loss Due To Fire (Vehicles and Buildings) Lincoln Fire Rescue & Emergency Services Page 110 of 134

111 Annual Report The following chart illustrates the types of properties where fires with losses occurred in 2016: Residential 53% Commercial 3% Assembly 4% Vehicles 18% Industrial 4% Farm/Agricultural 7% Misc. Structures 11% 2016 Fires By Occupancy The following chart illustrates the causes of fires in 2016: Natural Cause 3% Undetermined 24% Arson/Vandalism 14% Unattended 4% Mechanical Failure 3% Design/Construction/ Installation Deficiency 14% Improper Handling/Storage 17% Electrical Failure 21% 2016 Fire Causes Lincoln Fire Rescue & Emergency Services Page 111 of 134

112 2016 Annual Report 27 Medical Assistance Incidents As part of an integrated pre-hospital care system that provides emergency medical intervention to victims of serious illness or injury, the fire department responds to certain medical incidents to assist the primary response agency, Niagara Emergency Medical Services (EMS). Current medical research indicates that the expected save rate for cardiac arrest patients is approximately 12% if defibrillation takes place within 5 minutes, and less than 4% after 10 minutes. Firefighter assistance to paramedics is vital in the most serious cases, such as cardiac arrest, at the scene and during transportation of the patient to the hospital. Lincoln was at a Level 2 tiered response protocol. In 2016, after extensive consultations with the Medical Director of Niagara Emergency Medical Services, and upon approval of the Ministry of Health and Long-term Care, Lincoln moved to a Level 4 tiered response protocol in May This change was implemented to reduce the number of fire department responses for which no action by firefighters was required upon arrival. In 2015, 43% of all medical assistance calls did not require any action by firefighters, and many were simply wave-offs where firefighters were cancelled immediately upon arriving at the scene. Through analysis of medical records by the Medical Director, it was confirmed that these responses added no benefit to patient outcome, but posed a risk to responding firefighters, an unnecessary cost to municipal taxpayers, and were potentially contributing to burn out of the volunteer firefighters. As a result of the change in response protocols, the fire department is dispatched to provide medical assistance to calls that meet the following criteria: Vital Signs Absent (No change) Choking, Not Breathing (No change) Severe Trauma, Multiple Wounds, or Multiple victims (No change) Rescues, or Motor Vehicle Collisions with Injuries or Entrapment (No change) Chest Pains, if EMS cannot arrive within 15 minutes (Increased from 8 minutes) Difficulty Breathing, if EMS cannot arrive within 15 minutes (Increased from 8) Unconsciousness, if EMS cannot arrive within 15 minutes (Increased from 8) Uncontrolled Bleeding, if EMS cannot arrive within 15 minutes (Increased from 8) The following chart illustrates the types of medical assistance responses in 2016: Lincoln Fire Rescue & Emergency Services Page 112 of 134

113 Annual Report Oxygen administered/ Respiratory 33% No FD Action Required 32% CPR Administered 6% Other Medical Call 9% Alcohol/Drug Related 1% DOA 5% Chest pains 4% Seizure 5% Accident or Illness/Cuts/Fractures 5% 2016 Medical Assistance Response Types The fire department provided a service at 68% of the medical assistance responses in Open Air Burning Incidents Lincoln s open air burning by-law establishes rules for burning safely, and requires the issuance of a permit which places the onus of responsibility for burning safely and lawfully upon the permit holder. Permits for farms are issued without charge, while permits for occasional and recreational purposes are issued for a nominal fee of $30 per calendar year. The vast majority of residents obey the by-law. However, if an open air fire is found to be unsafe or unlawful, and the party cannot extinguish the fire, fire apparatus is dispatched to extinguish the fire, and a fee of $650 per hour per responding truck is assessed to recover costs. Approximately 1,700 open air fire permits were issued in The fire department responded to 51 open air burning complaints during the year. A review of the Open Air Fire By-Law was commenced in The results of an on-line survey with over 1,000 respondents, as well as comments made during a very well attended Public Information Centre will be used to formulate recommendations for possible revisions to the bylaw for Council s consideration in Lincoln Fire Rescue & Emergency Services Page 113 of 134

114 2016 Annual Report 29 Training & Development The Lincoln Fire Rescue & Emergency Services training program is essential to the success of our department. Active participation in the training program by all firefighting staff ensures that our team works effectively, efficiently, and most importantly safely. Lincoln Firefighters - Ladder Drills Firefighters meet weekly for training. Several times throughout the year, joint training is conducted where two or more stations participate together in a training session. In addition to the regular weekly training schedule, there are numerous opportunities to participate in additional training courses and activities that arise from time to time. In order to maintain an acceptable level of proficiency, there is a requirement for each Lincoln firefighter to successfully complete a minimum of 53 hours of training annually. Annually, every firefighter is required to complete training in first aid, CPR, airway management, automatic epinephrine injector ( Epi-pen ) administration, and defibrillation, demonstrate defibrillator proficiency to the Base Hospital Physician, demonstrate proficiency in the use of self-contained breathing apparatus, and complete training in firefighter survival and self-rescue. They are also required complete live-fire training bi-annually. In 2016, Lincoln s firefighters completed an average of 105 hours of training each. Overall, 83% of Lincoln s volunteer firefighters met the 53 hour annual training requirement. The following chart illustrates the hours of training attended in 2016: Lincoln Fire Rescue & Emergency Services Page 114 of 134

115 Annual Report Firefighting Tactics/Drills Recruit Training Medical/CPR/Defib Fire Prevention Equipment Care/Use Live Fire Training Rescue/Vehicle Extrication Officer Training Haz. Mat/Special Hazards Pump Operations Firefighter Survival/RIT Driver Training Building Tours/Public Ed. Water/Ice Rescue Aerial Operations Health & Safety Tanker Operations Firefighter Training Hours By Topic Lincoln Fire Rescue & Emergency Services Page 115 of 134

116 2016 Annual Report 31 Emergency Management The Emergency Management and Civil Protection Act, 1990 mandates that every municipality in Ontario must have an emergency management program to prepare for, mitigate, and recover from a disaster or other emergency event should one occur in or around the community. Lincoln s emergency management program was adopted by Council pursuant to By-Law No By-Law to Adopt an Emergency Management Program for the Town of Lincoln, and is administered by the Community Emergency Management Coordinator (CEMC). In Lincoln, the Fire Chief is designated as the CEMC Windstorm, Victoria Ave. Hydro Pole Blown Down Onto Fully Loaded Gasoline Tanker Truck; Driver Trapped by Arcing Live Wires. (QEW was also closed OPP diverting traffic onto Victoria Ave.) To meet the requirements of the Act, the municipal emergency management program must: Establish a municipal Emergency Management Program Committee Designate a Community Emergency Management Coordinator Designate an Emergency Information Officer Enact a by-law to adopt the Emergency Management Program Complete and periodically review a Hazard Identification and Risk Assessment Implement and periodically review an Emergency Response Plan Develop and maintain a list of critical infrastructure Provide for an Emergency Operations Centre Conduct annual training for Emergency Control Group personnel Conduct an annual exercise to test the implementation of the Emergency Response Plan Provide information to the public regarding emergency preparedness Review the emergency management program annually, and update as required The Emergency Management Program Committee, comprised primarily of the Senior Management Team, completed all requirements under the Act in Lincoln Fire Rescue & Emergency Services Page 116 of 134

117 Annual Report Performance Measures To ensure that fire department operations are managed in a professional and business-like fashion, key performance indicators and associated costs are monitored on an on-going basis. The following chart depicts the distribution of volunteer firefighters hours to various activities: Emergency Calls Standby at Station 15% Training 35% Emergency Calls Respond to Scene 29% Other (Meetings, Work Details, Misc.) 5% Public Education/Fire Prevention 3% Apparatus & Equipment Maintenance 13% 2016 Firefighter Distribution of Activities by Hours The following table depicts the overall average cost per incident for all incident types: Emergency Response Cost 2016 Part-Time Firefighter Emergency Response Pay $274,038 Emergency Response Operating Costs (Apportioned) $261,158 Total Number of Incidents 758 COST PER INCIDENT: $ Average Response Cost per Incident Lincoln Fire Rescue & Emergency Services Page 117 of 134

118 2016 Annual Report 33 Comparators It is often of value to compare the performance of similar municipalities in order to gauge the relative success of one s own municipality. While each community certainly has its own unique characteristics and circumstances, the comparator information presented herein can be helpful when negotiating the opportunities and challenges that will shape the future direction of the fire service in the Town of Lincoln. The following table compares fire department costs per capita Niagara: Municipality Net Cost per Capita (including Amortization) West Lincoln $61 Grimsby $64 Pelham $72 Lincoln $82 Fort Erie $93 NOTL $111 Wainfleet $111 Port Colborne $155 St. Catharines $191 Thorold $203 Welland $208 Niagara Falls $233 AVERAGE: $132 Comparison of Fire Department Costs in Niagara Region (2016 FIR Data) It is clear that Lincoln Fire Rescue and Emergency Services continues to provide efficient and cost-effective service to the community. Lincoln Fire Rescue & Emergency Services Page 118 of 134

119 Administration TO: Finance and Administration Committee MEETING DATE: June 26, 2017 SUBJECT / REPORT NO: PREPARED BY: Proposed Changes to the Employment Standards Act 2000 Report No AD17-15 Jacqueline Buchanan Human Resource Specialist SUBMITTED BY: Jacqueline Buchanan, ext. 227 Human Resource Specialist RECOMMENDATION: Mike Kirkopoulos Chief Administrative Officer 1. That report #AD17-15 regarding the proposed changes to the Employment Standards Act, 2000 be received as information. EXECUTIVE SUMMARY: In 2015, the Ministry of Labour was commissioned to undertake a comprehensive review of the Employment Standards Act 2000 (ESA) and the Labour Relations Act (LRA). The final report, issued on May 23, 2017, contained 173 recommendations. A week later on May 30, 2017 the Ontario government announced its intention to introduce new workplace legislation, Bill 148 The Fair Workplaces, Better Jobs Act, 2017 to address some of those recommendations. The changes are the most substantive proposed to the ESA since Therefore, the Act has received first reading approval in the Bill approval process, on June 1, A link to the full Bill and its status can be found here: ( etail_the_bill). If passed, as is, there will be implications to the Town, specifically minimum wage increases; equal pay for casual, part-time, temporary and seasonal employees and WSIB reform. This report outlines a summary of the major employment standards changes proposed. Once the legislation passes, a report will be submitted with the exact financial implications. Page 119 of 134

120 Report # AD Page 2 Area Proposed Change Effect Equal Pay Equal pay will be mandatory for part-time, temporary, casual and seasonal employees doing the same job as full-time employees, unless the difference is due to factors such as seniority and merit pay. Operationally, the Town has six (6) part-time labourers who would be eligible under this proposed change. SMT and Human Resources is also investigating additional impacts to seasonal employees. To clarify, this proposed change only addresses wage, not benefits. $15 Minimum Wage October 1, 2017 minimum wage will increase to $11.60 / hr. January 1, 2018 minimum wage will increase to $14.00 / hr. January 1, 2019 minimum wage will increase to $15.00 / hr. The proposed increases to minimum wage will have an impact on our budget line for wages. These considerations will be built into budget planning this year. See Table 1 below in the Financial section for overview of proposed minimum wage rates, per classification Misclassification of Employees Call-in and On-Call Pay Vacation and Leaves Penalties will be implemented if a worker should have been classified as an employee. Employees will be entitled to three (3) hours pay at regular rate as a minimum for being called into work or having to be on-call but are not called into work. The minimum annual vacation entitlement will increase to 3 weeks per The Town has been remedying and clarifying contract work over the past year and is working diligently to ensure proper classification of staff, prior to this Act passing No effect. Currently a greater benefit as per our Collective Agreement (i.e., 4 hour minimum) No effect. Our policies are in compliance with this proposed change. Page 120 of 134

121 Report # AD Page 3 year after 5 years of employment. Physician Notes for Absences Personal emergency leave will be extended to all workplaces and at least 2 of the 10 days must be with pay. Employers would be prohibited from requesting a sick note from an employee taking one (1) Personal Emergency Leave Day. Minimal effect. Current policy dictates a greater benefit (i.e., note after three days), with exception of one circumstance that will require a policy update. WSIB Reform Effective January 1, 2018, WSIB will allow entitlement to chronic mental stress for workplace injuries that occur on or after January 1, The Town takes mental health seriously. The new changes proposed support an expanded scope for claims of mental stress as a result of a workplace event, bullying and/or harassment. The Town is taking every effort to ensure staff are protected from workplace mental stress, bullying or harassment. FINANCIAL STAFFING LEGAL CONSIDERATIONS: Financial: If passed, staff will incorporate a financial strategy as part of the 2018 budget planning process. As per Bill 148, the following Table outlines the proposed rates effective October 1, 2017, for several employee classifications. Subsequent increases are also set for 2018 and 2019 that are more substantial. Page 121 of 134

122 Report # AD Page 4 Table 1: Minimum Wage Rate General Minimum Wage Student Minimum Wage Liquor Servers Minimum Wage $11.40 per hour $10.70 per hour $9.90 per hour Minimum Wage Rates Rates from October 1, 2016 to September 30, 2017 Rates as of October 1, 2017 $11.60 per hour $10.90 per hour $10.10 per hour Staffing: See above Legal: n/a RELEVANT CONSULTATION: n/a STAFF COMMENTS: It is worthwhile to note that these are proposed changes only, and have not yet passed into law. Staff will continue to monitor the progression of these proposed changes and potential impact on organization and economic development in community. ALTERNATIVES FOR CONSIDERATION: N/A COMMUNICATION/ENGAGEMENT OVERVIEW: N/A ALIGNMENT TO CORPORATE PLAN: This report is consistent with the Future Focus Corporate Plan to manage the Town so it protects the quality of assets, delivers services in an effective and efficient manner and encourages a working environment that creates opportunities for efficiencies in service delivery to ensure high value for all Lincoln taxpayers. ATTACHMENTS N/A Page 122 of 134

123 Finance & Administration TO: Finance & Administration Committee MEETING DATE: June 26, 2017 SUBJECT / REPORT NO: 2016 Annual Investment Report TR PREPARED BY: SUBMITTED BY: Angela Cifani, Director of Finance & Administration Mike Kirkopoulos, Chief Administrative Officer RECOMMENDATION: 1. THAT Report TR regarding the 2016 Annual Investments be received as information. EXECUTIVE SUMMARY: To provide Council with information regarding the status of the current investment portfolio as at December 31, 2016, in accordance with Council Policy No. FN HISTORICAL BACKGROUND: The Town s Investment Policy, Policy No. FN , an investment report be presented to Council annually, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the year. FINANCIAL STAFFING LEGAL CONSIDERATIONS: Financial: There are no additional financial requirements. Staffing: There are no additional staffing requirements. Legal: There are no legal costs anticipated. Page 123 of 134