Administration & Finance Committee Agenda

Transcription

1 TOWN OF GRIMSBY Administration & Finance Committee Agenda Monday, May 11, :30 p.m. Town Hall Escarpment Room 160 Livingston Avenue Page A. Call to Order B. Disclosure of Interest C. Delegations i) Sarah Sweeney, Recreation Coordinator - Town of Grimsby Logo D. Reports 3-4 i) TC Election Sign By-law Amendment 5-22 ii) TC Crossing Guard Policy and Procedures iii) FCR Memorandum of Understanding - GFD & Ontario Fire College iv) FCR Amendment to By-law Fire Protection Agreement - West Lincoln v) FIN Tax Write-offs vi) Presentation of 2013 Audited Financial Statements - Delight Davoli, Southcott Davoli Professional Corporation Page 1 of 81

2 Page Administration & Finance Committee Agenda May 11, vii) FIN Finance Department Staffing E. New Business F. Next Meeting i) The next Administration & Finance Committee meeting is scheduled for Monday, June 8, 2015 at 4:30 p.m. in the Town Hall Escarpment Room, 160 Livingston Avenue. G. Adjournment Page 2 of 81

3 TC Election Sign By-law Amendment Page 3 of 81 Agenda Item #i)

4 TC Election Sign By-law Amendment Page 4 of 81 Agenda Item #i)

5 TC Crossing Guard Policy and Procedures Page 5 of 81 Agenda Item #ii)

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23 Agenda Item #iii) FCR May 7, 2015 REPORT TO: SUBJECT: Chair C. Mullins Members of Administration and Finance Committee Memorandum of Understanding GFD & Ontario Fire College Recommendation RESOLVED, That Report FCR dated May 7, 2015 with reference to a Memorandum of Understanding (MOU) between the Grimsby Fire Department (GFD); the Ontario Fire College (OFC), and the Office of the Fire Marshal and Emergency Management (OFMEM) Academic Standards and Evaluation (AS&E) be received and that the Fire Chief be authorized to execute the document. Introduction Access to quality fire protection training programs is essential to maintaining fire service capacity for delivering vital services to the community. As a result of Council s support for the development of a training facility, GFD is very proud to announce that an agreement in principle has been struck between GFD, the OFC, OFMEM AS&E that provides for the direct delivery of OFC course offerings and provincial evaluations through the Grimsby Training Facility. The intent of this report is to provide an overview of the attached MOU, and establish Council s authorization to execute the document. Government Partnership The MOU reinforces positive working relationships between local and provincial agencies that are committed to advancing public fire and life safety through access to quality training programs. Through the MOU, the roles and responsibilities of all parties are identified. The document will provide for streamlined administrative processes while ensuring high quality, safe and effective training, education and evaluation. The MOU establishes the Grimsby Training Facility as a Regional Training Centre for OFC course delivery and provides for direct access to provincial evaluators. The particular course offerings will be defined by GFD based on our local needs and requests, however, will also be listed the OFC provincial calendar to allow for cost effective class sizes and delivery logistics. Preservation of the Volunteer Fire Service Delivery Model In February 2013, FCR was presented to Council to reinforce the importance of investing in fire prevention programming as the means for preserving the volunteer fire service delivery model. The fact remains, that effective public fire safety education and inspection programs save more lives and reduce property loss at a far higher frequency than emergency response. Community growth and changes in demographics, legislation & industry practices and local building stock necessitate the need for GFD to adapt our programming. Fire Prevention Succession Planning FCR introduced a prevention personnel development and succession planning strategy that relies heavily on training personnel to meet professional standards. The MOU will provide for the direct delivery of FCR Memorandum of Understanding - GFD & Ontario Fire C... Page 23 of 81 1

24 Agenda Item #iii) all public education and prevention course offerings at a local level, and within a schedule that GFD will have some control over. Significance of Opportunity The Office of the Fire Marshal and Emergency Management (OFMEM) and GFD share a common belief that there are three lines of defense for fire protection (i.e. Public Education, Code Enforcement, and Emergency Response). Recent OFMEM initiatives of monitoring and reviews of the fire service have placed growing emphasis on a local municipality s capacity to fulfil fire prevention legislated mandates. Beyond the course delivery component, the MOU provides for a unique and timely opportunity for direct OFC involvement and input with the design of the Grimsby Training Facility. In addition to traditional suppression based components; the Grimsby Training Facility will be designed with purpose-built fire prevention and public education training props that will address our specific needs and establish our local training venue as a true center for fire prevention excellence and industry leader. The direct involvement of the OFC at this level is a very positive opportunity to address our local needs while augmenting the OFMEM s desire to advance fire prevention initiatives. Beyond the direct financial considerations of the MOU, the partnership provides for a very beneficial marketing opportunity as GFD further investigates and defines the funding formula strategy. Financial Considerations As outlined in the MOU, the partnership provides for: The OFC to manage the registration fee for all fire services sending candidates to courses offered at Grimsby Training Centre. (The payment recognizes the value of the contribution of the OFC in course development, quality assurance and in the course results being entered onto firefighters OFC studentlearner records). AS&E will cover costs associated with the development of OFMEM proctors and practical skill evaluators. The OFC will cover costs associated with the development of OFC Associate Instructors. The OFC will assist Grimsby Training Centre in becoming self-sustainable in relation to OFC offerings. Recommendation The preservation of the volunteer service delivery model relies on GFD s ability to provide professional fire protection service delivery. Council s commitment to developing the GFD Training Facility combined with Council s pre-established commitment to invest in fire prevention programming is embodied in the spirit of the MOU. Albeit, primarily operational in nature, Council s support and authorization for the Fire Chief to execute the document is recommended. Respectfully submitted, Michael Cain Fire Chief MC/cm FCR Memorandum of Understanding - GFD & Ontario Fire C... Page 24 of 81 2

25 Ontario Fire College Grimsby Training Centre Training, Evaluation, and Registration Memorandum of Understanding May, 2015 Ontario Fire College Grimsby Training Centre Training, Evaluation, and Registration Memorandum of Understanding Introduction DRAFT FOR DISCUSSION This Memorandum of Understanding (MOU) is intended to define the working relationship between the Ontario Fire College (OFC), OFMEM Academic Standards and Evaluation (AS&E) and GRIMSBY TRAINING CENTRE related to training, evaluation, and registration for the emergency services, especially the Ontario fire service. The MOU is intended to cover all aspects of training delivery including registration, distribution of course materials, scheduling and student-learner records, as well as evaluation processes. The goals of the MOU are to: Scope: Expand the reach of the OFC, AS&E, and GRIMSBY TRAINING CENTRE in providing training and evaluation to Ontario fire service personnel. Enhance access to OFC courses and AS&E evaluation processes, while streamlining administrative processes and ensuring high quality, safe and effective training, education, and evaluation. This MOU applies to all OFC course offerings and AS&E evaluation processes for fire service personnel (and where they are included, other emergency service personnel) across the province. (See Appendix A for list of OFC courses covered by this MOU.) This MOU does not apply to other OFC course offerings or to other GRIMSBY TRAINING CENTRE course offerings. Agenda Item #iii) Roles and Responsibilities: OFC will: Assign course numbers (makes course official OFC offering) to courses on Appendix A, for the purpose of documenting training and updating student-learner records. Designate a contact person for liaison and administration of this MOU. Meet with AS&E and GRIMSBY TRAINING CENTRE at least twice a year to review the MOU and plan activities. FCR Memorandum of Understanding - GFD & Ontario Fire C... Page 25 of 81

26 Ontario Fire College Grimsby Training Centre Training, Evaluation, and Registration Memorandum of Understanding May, 2015 Include GRIMSBY TRAINING CENTRE courses on the OFC Annual Calendar / Vacancy List / Supplemental Marketing wherever possible and mutually agreed. (Where regional courses are planned a year in advance, they would appear on the OFC Annual Calendar; when they are added after the Calendar is distributed they would appear on the OFC Vacancy List, where most fire departments look for course openings; or the OFC may publish a quarterly Calendar Supplement that lists regional courses added between Calendars.) Provide presentation opportunities to GRIMSBY TRAINING CENTRE at Seminars, Conferences, Trade Shows, where possible and mutually agreed. Share equipment and supplies where possible. Provide OFC Policies and class opening presentations to GRIMSBY TRAINING CENTRE Emergency Services staff to be shared with instructors and student-learners. Monitor the quality of training delivery, subject to resource availability. Agenda Item #iii) OFMEM Academic Standards and Evaluation section will: Provide GRIMSBY TRAINING CENTRE with copies of required written tests and practical skill evaluation sheets. Provide GRIMSBY TRAINING CENTRE with test proctors and lead skill evaluators. Provide GRIMSBY TRAINING CENTRE with all documentations pertaining to evaluation processes. Meet with OFC and GRIMSBY TRAINING CENTRE at least twice a year to review the MOU and plan activities. REGIONAL TRAINING CENTRES will: Submit annual proposed OFC course offerings requests by the prescribed deadline for approval for inclusion in the OFC Calendar. Designate a contact person for liaison and administration of this MOU. Meet with OFC and AS&E at least twice a year to review the MOU and plan activities. Provide registration information to OFC for all GRIMSBY TRAINING CENTRE courses delivered to Ontario fire service personnel. Ensure OFC policies are communicated and followed (e.g. WDHP). Establish and collect fees. Adhere to AS&E policies and procedures for evaluation processes. FCR Memorandum of Understanding - GFD & Ontario Fire C... Page 26 of 81

27 Ontario Fire College Grimsby Training Centre Training, Evaluation, and Registration Memorandum of Understanding May, 2015 Quality Assurance Process The OFC will randomly attend courses offered on Appendix A and monitor delivery to ascertain currency and quality of training. AS&E will randomly attend written testing and/or practical skill evaluations and monitor evaluation processes to ascertain currency and quality of evaluation. The GRIMSBY TRAINING CENTRE will adhere to the most current OFC Fire Ground Operational Policy and Student-learner Policy for all OFC courses. The GRIMSBY TRAINING CENTRE will adhere to most current AS&E evaluation processes policies and procedures pertaining to written testing and practical skill evaluations. Only OFC approved Associate Instructors will be allowed to instruct OFC courses offered at GRIMSBY TRAINING CENTRE. Development of Instructors shall adhere to OFC Associate Instructor criteria. Financial Considerations The OFC will manage the registration fee for all fire services sending candidates to courses offered at GRIMSBY TRAINING CENTRE. This payment recognizes the value of the contribution of the OFC in course development, quality assurance and in the course results being entered onto firefighters OFC studentlearner records. AS&E will cover costs associated with the development of OFMEM proctors and practical skill evaluators. The OFC will cover costs associated with the development of OFC Associate Instructors. The OFC will assist GRIMSBY TRAINING CENTRE in becoming self-sustainable in relation to OFC offerings. Registration Until an integrated system is implemented, GRIMSBY TRAINING CENTRE will provide nominal rolls of completed courses to OFC, in a mutually agreed format, such as EXCEL. OFC will enter the results on individual student-learner records. GRIMSBY TRAINING CENTRE will submit applications for evaluations, as per AS&E policies and procedures. Agenda Item #iii) FCR Memorandum of Understanding - GFD & Ontario Fire C... Page 27 of 81

28 Ontario Fire College Grimsby Training Centre Training, Evaluation, and Registration Memorandum of Understanding May, 2015 Termination Notice This MOU shall terminate when one party provides written notice to the other. Agenda Item #iii) OFC Representative Date Grimsby Training Centre Date AS&E Representative Date FCR Memorandum of Understanding - GFD & Ontario Fire C... Page 28 of 81

29 Ontario Fire College Grimsby Training Centre Training, Evaluation, and Registration Memorandum of Understanding May, 2015 Appendix A: List of approved Grimsby Training Centre OFC courses Agenda Item #iii) Effective date Calendar year (YYYY-YYYY) FCR Memorandum of Understanding - GFD & Ontario Fire C... Page 29 of 81

30 Agenda Item #iv) FCR May 7, 2015 REPORT TO: Chair C. Mullins Members of Administration and Finance Committee SUBJECT: Amendment to Bylaw Fire Protection Agreement West Lincoln Recommendation RESOLVED, That Report FCR dated May 7, 2015 with reference to Amendment to Bylaw Fire Protection Agreement West Lincoln be received and that Bylaw be forwarded to Council for approval. Background Grimsby and West Lincoln have enjoyed the reciprocal benefits of a fire service agreement for many years. In 2013, Bylaw authorized an update to the formal operational agreement. The agreement was structured in a manner that would allow for periodic review and amendments that would accommodate ongoing changing needs. To this affect, the particular scope of services is defined as a Schedule to the agreement. The services within the Schedule are operational in nature and fall within mandate of the Fire Chief. The intent of this report is to identify amendments to Bylaw Fire Protection Agreement West Lincoln - Schedule A - Plan No. 3.0 Rural Response. Particulars Traditional fire service relationships have focused on tanker/pumper support for confirmed structure fires in rural areas not protected by hydrants. Over the past several months, the Deputy Fire Chiefs of West Lincoln and Grimsby have reviewed operational deployment in the south east corner of Grimsby (Sobie Road to Mud Street Park Road to Fairbrother Road). The review has identified potential operational improvements that may be initiated through simultaneous deployment of West Lincoln Station 1 (Smithville) to all emergency calls within the defined area of Grimsby on the basis that the Smithville fire station location is significantly closer geographically. It is important to qualify that the process improvement will augment GFD s response, not replace it. Financial Considerations The existing agreement establishes that each municipality is responsible for its own costs and such costs will be reviewed annually and balanced on a five year average. The agreement also provides for measures to amicably resolve inequities. On this basis, there are no anticipated financial implications associated with the amendment. FCR Amendment to By-law Fire Protection Agreem... Page 30 of 81 1

31 Agenda Item #iv) Conclusion & Recommendation As GFD strives for excellence in the delivery of professional fire protection services through the volunteer delivery model, effectiveness models are constantly reviewed and adapted to accommodate opportunity. The proposed amendment to the fire service agreement improves operational deployment capacity within the defined area. Once implemented, the effectiveness will be monitored to ensure that results replicate the assumptions. It is thereby recommended that the amending Bylaw be forwarded to Council for approval. Respectfully submitted, Michael Cain Fire Chief MC/cm FCR Amendment to By-law Fire Protection Agreem... Page 31 of 81 2

32 Agenda Item #iv) The Corporation of the Town of Grimsby By-Law No A By-law to amend By-law No being the By-law to authorize an agreement between the Corporation of the Town of Grimsby and the Corporation of the Township of West Lincoln for Fire Protection Services. Whereas Council enacted By-law No to authorize an agreement between the Corporation of the Town of Grimsby and the Corporation of the Township of West Lincoln for Fire Protection Services. And whereas Council deems it necessary to amend the said By-law No or the agreement it authorized. Now therefore, the Council of the Corporation of the Town of Grimsby enacts as follows: 1. That the agreement authorized by Bylaw is hereby amended by deleting Plan No. 3.0 of Schedule A from the said agreement and inserting in lieu thereof the following: Plan No.3.0- Rural Response In the rural areas of both municipalities, where it is not hydrant protected, there is concern for adequate water supply and tanker apparatus. With both Fire Departments having the capability to provide each other with equipment and manpower, it is agreed that a simultaneous response be summoned for both Fire Departments to provide a tanker shuttle upon confirmation of a structure fire. The distance between rural boundaries and responding host departments is a concern for a timely response to medical aid, motor vehicle accidents and fires. The capability of both departments to provide medical aid, auto extrication and fire suppression services with a coordinated response will serve both communities in a timely manner. With both Fire Departments having the capability to provide each other with equipment and manpower, it is agreed that a simultaneous response be summoned for both Fire Departments to provide the required and appropriate apparatus in the designated response zones upon receipt of a medical aid, motor vehicle accident or a fire call. The response by radio will be arranged through St. Catharines Fire Department, Communications Division through to West Lincoln Fire and Emergency Services and the Grimsby Fire Department. FCR Amendment to By-law Fire Protection Agreem... Page 32 of 81

33 Page 2 Agenda Item #iv) By-law West Lincoln Rural Response Area Requiring Automatic Aid STRUCTURE FIRE TANKER ONLY 3.2 Grimsby Rural Response Area Requiring Automatic Aid- STRUCTURE FIRE TANKER ONLY FCR Amendment to By-law Fire Protection Agreem... Page 33 of 81

34 Page 3 Agenda Item #iv) By-law Grimsby Medical Aid, Motor Vehicle Accident and Fires Requiring Automatic Aid from West Lincoln / 421 Park Rd Sobie every property south and east of these addresses 476/491 Park Rd Mud St E.- every property north and east of these addresses 412 / 417 Thirty Sobie every property south, east and west of these addresses 2. This Bylaw shall come into force and effect on the day it is passed. Read a first time this 18 th day of May Read a second and third time and finally passed this 18 th day of May R.N. Bentley, Mayor H. Soady-Easton, Clerk FCR Amendment to By-law Fire Protection Agreem... Page 34 of 81

35 FIN Tax Write-offs Page 35 of 81 Agenda Item #v)

36 FIN Tax Write-offs Page 36 of 81 Agenda Item #v)

37 Presentation of 2013 Audited Financial Statements - Delight... Page 37 of 81 Agenda Item #vi)

38 Presentation of 2013 Audited Financial Statements - Delight... Page 38 of 81 Agenda Item #vi)

39 Presentation of 2013 Audited Financial Statements - Delight... Page 39 of 81 Agenda Item #vi)

40 Presentation of 2013 Audited Financial Statements - Delight... Page 40 of 81 Agenda Item #vi)

41 Presentation of 2013 Audited Financial Statements - Delight... Page 41 of 81 Agenda Item #vi)

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43 Agenda Item #vi) Financial Statements of THE CORPORATION OF THE TOWN OF GRIMSBY Year ended December 31, 2013 Consolidated Trust Downtown Improvement Area Public Library Board Public Art Gallery Presentation of 2013 Audited Financial Statements - Delight... Page 43 of 81

44 Agenda Item #vi) Consolidated Financial Statements of THE CORPORATION OF THE TOWN OF GRIMSBY Year ended December 31, 2013 Presentation of 2013 Audited Financial Statements - Delight... Page 44 of 81

45 Agenda Item #vi) Management s Responsibility for Consolidated Financial Statements The accompanying consolidated financial statements of the Corporation of the Town of Grimsby (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 finance 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 Southcott Davoli Professional Corporation, independent auditors appointed by the Town. The accompanying Auditors Report outlines their responsibilities, the scope of their examination and their opinion on the Town s consolidated financial statements. Keith Vogl Town Manager Steven Gruninger Director of Finance/Treasurer Presentation of 2013 Audited Financial Statements - Delight... Page 45 of 81

46 Agenda Item #vi) INDEPENDENT AUDITORS REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the Town of Grimsby We have audited the accompanying consolidated financial statements of The Corporation of the Town of Grimsby, which comprise the consolidated statement of financial position as at December 31, 2013 and the consolidated statements of operations and changes in net financial assets and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 the auditors judgment, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers 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. Presentation of 2013 Audited Financial Statements - Delight... Page 46 of 81

47 Agenda Item #vi) Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of The Corporation of the Town of Grimsby as at December 31, 2013, and its consolidated results of operations and its changes in net financial assets and cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants Authorized to practise public accounting by The Institute of Chartered Accountants of Ontario Grimsby, Ontario Presentation of 2013 Audited Financial Statements - Delight... Page 47 of 81

48 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Consolidated Statement of Financial Position December 31, 2013, with comparative figures for 2012 (in thousands of dollars) Financial assets: Cash $ 9,678 $ 6,498 Taxes receivable (note 2) 3,517 3,123 User charges receivable 1,347 1,295 Accounts receivable 2,081 2,330 Investment in Niagara Power Incorporated (note 3) 16,730 16,423 Portfolio investments (note 4) 16,737 16,996 50,090 46,665 Financial liabilities: Accounts payable and accrued liabilities 4,411 4,049 Due to trust funds Deferred revenue general (note 5) Deferred revenue obligatory reserve funds (note 6) 7,251 7,455 Post-employment benefit liability (note 7) Net long-term liabilities (note 8) 891 1,711 13,930 14,463 Net financial assets 36,160 32,202 Non-financial assets: Tangible capital assets (note 9) 241, ,229 Inventories and prepaid expenses , ,798 Commitments and contingencies (note 11) Accumulated surplus (note 10) $ 278,574 $ 262,000 The accompanying notes are an integral part of these consolidated financial statements. Presentation of 2013 Audited Financial Statements - Delight... Page 48 of 81

49 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Consolidated Statement of Operations Year ended December 31, 2013, with comparative figures for 2012 (in thousands of dollars) 2013 Budget (note 16) Revenues: Taxation and user charges: Property taxation $ 14,204 $ 14,113 $ 13,790 Taxation from other governments User fees 6,847 7,121 7,553 21,346 21,530 21,637 Government transfers (note 18) 1, ,292 Other: Penalties and interest on taxes Development charges 1,812 3, Investment income ,074 Contributed tangible capital assets 12,895 1,024 Other 3,263 2,141 1,269 Niagara Power Incorporated net earnings ,419 19,845 5,581 28,891 42,257 28,510 Expenses: General government 2,588 2,241 2,477 Protection to persons and property 2,002 2,134 2,039 Transportation services 3,247 3,989 3,606 Environmental services 8,359 11,225 9,978 Health services Social and family services Recreation and cultural services 4,584 4,881 4,784 Planning and development ,026 25,683 23,955 Annual surplus 6,865 16,574 4,555 Accumulated surplus, beginning of year 262, , ,445 Accumulated surplus, end of year (note 10) $ 268,865 $ 278,574 $ 262,000 The accompanying notes are an integral part of these consolidated financial statements. Presentation of 2013 Audited Financial Statements - Delight... Page 49 of 81

50 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Consolidated Statement of Changes in Net Financial Assets Year ended December 31, 2013, with comparative figures for 2012 (in thousands of dollars) 2013 Budget (note 16) Annual surplus $ 6,865 $ 16,574 $ 4,555 Acquisition of tangible capital assets (8,388) (21,709) (10,225) Tangible capital assets put into service 3,825 3,166 Amortization of tangible capital assets 4,952 4,744 Loss on disposal of tangible capital assets Proceeds on disposal of tangible capital assets (1,523) 3,821 2,387 Decrease (increase) in inventories and prepaid expenses 137 (303) Change in net financial assets (1,523) 3,958 2,084 Net financial assets, beginning of year 32,202 32,202 30,118 Net financial assets, end of year $ 30,679 $ 36,160 $ 32,202 The accompanying notes are an integral part of these consolidated financial statements. Presentation of 2013 Audited Financial Statements - Delight... Page 50 of 81

51 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Consolidated Statement of Cash Flows Year ended December 31, 2013, with comparative figures for 2012 (in thousands of dollars) Operating activities: Annual surplus $ 16,574 $ 4,555 Items not involving cash: Equity earnings of government business entity (607) (708) Contributed tangible capital assets (12,895) (1,024) Amortization 4,952 4,744 Loss on disposal of tangible capital assets Change in post-employment benefit liability (5) Change in non-cash operating balances: Taxes receivable (394) 123 User charges receivable (52) (79) Accounts receivable Inventories and prepaid expenses 137 (303) Accounts payable and accrued liabilities 362 (1,914) Due to trust funds 4 16 Deferred revenue general 130 (484) Deferred revenue obligatory reserve funds (204) (503) Net change in cash from operating activities 8,393 5,164 Capital activities: Acquisition of tangible capital assets (4,989) (6,036) Proceeds on disposal of tangible capital assets Net change in cash from capital activities (4,952) (6,023) Investing activities: Portfolio investments 259 (5,656) Dividend received from government business entity Net change in cash from investing activities 559 (5,582) Financing activities: Long-term liability repaid (820) (757) Net change in cash from financing activities (820) (757) Net change in cash 3,180 (7,198) Cash, beginning of year 6,498 13,696 Cash, end of year $ 9,678 $ 6,498 The accompanying notes are an integral part of these consolidated financial statements. Presentation of 2013 Audited Financial Statements - Delight... Page 51 of 81

52 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements Year ended December 31, 2013 (in thousands of dollars) The Town of Grimsby is a municipality in the Province of Ontario, Canada. It conducts its operations guided by the provision of provincial statutes such as the Municipal Act, Municipal Affairs Act and related legislation. 1. Significant accounting policies: The consolidated financial statements of the Corporation of the Town of Grimsby (the Town ) are the representation of management prepared in accordance with public sector accounting standards for local governments as established by the Public Sector Accounting Board ( PSAB ) of the Chartered Professional Accountants of Canada. Significant accounting policies adopted by the Town are as follows: (a) Reporting entity: (i) Consolidated statement of financial position: These consolidated statements reflect the assets, liabilities, revenue and expenses of the reporting entity. The reporting entity is comprised of all committees of Council and the following boards, which are under the control of Council: The Grimsby Public Library Board The Grimsby Museum The Grimsby Downtown Improvement Area All interdepartmental assets, liabilities, revenues and expenses have been eliminated. The investment in Niagara Power Incorporated ( NPI ) 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 interorganizational transactions and balances are not eliminated. The Town recognizes its equity interest in the annual income or loss of NPI in its statement of operations with a corresponding increase or decrease in its investment asset account. Any dividends that the Town may receive from NPI will be reflected as reductions in the investment asset account. (ii) Accounting for Region and School Board transactions: The taxation, other revenues, expenses, assets and liabilities with respect to the operations of the school boards and the Region of Niagara are not reflected in the municipal fund balances of these consolidated financial statements. (iii) Trust funds: Trust funds administered by the Town have not been included in the consolidated statement of financial position nor have their operations been included in the consolidated statement of operations. They are reported separately on the trust funds statement of financial position and statement of continuity. Presentation of 2013 Audited Financial Statements - Delight... Page 52 of 81

53 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 2 Year ended December 31, 2013 (in thousands of dollars) 1. Significant accounting policies (continued): (b) Basis of accounting: Revenues and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. (c) Cash and cash equivalents: Cash and cash equivalents include short-term investments with a term to maturity of 90 days or less at acquisition. (d) Investments: Investments are carried at amortized cost. When there has been a loss in value of an investment that is other than a temporary decline, the investment is written down to reflect the loss. (e) 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. (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 is amortized on a straight line basis over their estimated useful lives as follows: Asset Land improvements Buildings and building improvements Vehicles, machinery and equipment Water and wastewater infrastructure Roads infrastructure Rate years years 3 20 years years 6 75 years Presentation of 2013 Audited Financial Statements - Delight... Page 53 of 81

54 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 3 Year ended December 31, 2013 (in thousands of dollars) 1. Significant accounting policies (continued): (e) Non-financial assets (continued): (i) Tangible capital assets (continued): One half 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 use and put in service. (ii) Contributions of tangible capital assets: Tangible capital assets received as contributions are recorded at their fair values as of the date of receipt and are also recognized as revenue. Where fair market value is not available the values are estimated. (iii) Interest capitalization: The Town s capital asset policy does not allow for the capitalization of interest costs associated with the acquisition or construction of tangible capital assets. (iv) Leases: Leases are classified as operating or capital leases. Leases which transfer substantially all of the risks and benefits of ownership are accounted for as capital leases. All other leases are accounted for as operating leases and the related payments are charged as an expense when incurred. (v) Inventories: Inventories held for consumption are recorded at the lower of cost and replacement cost. (vi) Works of art and cultural and historic assets: Works of art and cultural and historic assets are not recorded as assets in these financial statements. (f) Deferred revenue: Deferred revenue represents user charges, fees, grants and development charges 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. Presentation of 2013 Audited Financial Statements - Delight... Page 54 of 81

55 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 4 Year ended December 31, 2013 (in thousands of dollars) 1. Significant accounting policies (continued): (g) Employee future benefits: (a) The Town provides certain employee benefits which will require funding in future periods. These benefits include extended health and dental benefits for a closed group of early retirees. An independent actuarial study to determine the liabilities for future payments of extended health and dental benefits has been undertaken using management s best estimate of insurance and health care cost trends, long term inflation rates and discount rates. (b) The costs of multi-employer defined benefit pension plan benefits, such as the Ontario Municipal Employees Retirement System ( OMERS ) pensions, are the employer s contributions due to the plan in the period. (h) Government transfers: Government transfers are recognized in the financial statements when the transfer is authorized, any 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 meets the definition of liability. Government transfers that meet the definition of a liability are recognized as revenue as the liability is extinguished. (i) Investment income: Investment income is 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 obligatory reserve funds balance. (j) Use of estimates: The preparation of financial statements in conformity with Canadian 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. Significant estimates include assumptions used in estimating provisions for accrued liabilities and in performing actuarial valuations of employee future benefits. The implementation of PSAB section 3150 has required management to make significant estimates of historical cost, fair market value and useful lives of tangible capital assets. These estimates are reviewed periodically and adjustments are made to income and expenses as appropriate in the year they become known. Presentation of 2013 Audited Financial Statements - Delight... Page 55 of 81

56 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 5 Year ended December 31, 2013 (in thousands of dollars) 2. Taxes receivable: Taxes receivable consist of the following: Current year's taxes receivable $ 1,928 $ 1,737 Previous year's taxes receivable Prior years' taxes receivable Allowance for uncollectable taxes (65) (65) $ 3,517 $ 3,123 Property tax billings are prepared by the Town of Grimsby based on an assessment roll prepared by the Municipal Property Assessment Corporation (MPAC), an agency of the Ontario government. All assessed property values in the Town were reviewed and new values established based on a common valuation date of 2012 which was used by the Town in computing the 2013 property tax bills. However, the property tax revenue and tax receivables of the Town of Grimsby are subject to measurement uncertainty as a number of appeals submitted by ratepayers have yet to be heard. Any billing adjustments made necessary by the determination of such changes will be recognized in the fiscal year in which they are determined. The Province of Ontario instituted a mandatory capping program through the provisions of Bill 140 that limits assessment related increases in certain classes of property to 5%. Presentation of 2013 Audited Financial Statements - Delight... Page 56 of 81

57 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 6 Year ended December 31, 2013 (in thousands of dollars) 3. Investment in Niagara Power Incorporated: The investment in Niagara Power Incorporated (NPI) is represented by the following: Promissory note receivable from subsidiary company $ 5,783 $ 5,783 Common and preferred shares 7,987 7,987 Retained earnings 2,281 1,960 Add: adjustment on acquisition of subsidiary Less: non-controlling interest (236) (222) $ 16,730 $ 16,423 The promissory note receivable from Grimsby Power Incorporated (GPI) bears interest at 5.01% ( %) and matures on February 1, Included in investment income is $290 ( $290) related to this note. The Town was charged $543 ( $482) for electricity service and street lighting in The Town of Grimsby provided property services, water and vehicle fuel to GPI aggregating $50 ( $48). These transactions are in the normal course of operations and are measured at the exchange amount established and agreed to by the related parties. Included in accounts payable is $152 ( $111) owing to GPI. NPI is 90% owned and controlled by the Town of Grimsby and as a business enterprise of the Town is accounted for on a modified equity basis in these financial statements. NPI is the electric distribution utility for the Town s residents. Other activities of NPI and its subsidiaries are to provide energy services, meter services and street lighting services. During the year, NPI updated its policy for the recording of future payments-in-lieu of taxes. Future payments-in-lieu of taxes are now recorded using both current and long term portions of the tax impact on regulatory items. The change in policy affected opening retained earnings for the year ended December 31, The change in policy did not affect operations for the year ended December 31, This change in policy had the following effect on the investment in NPI: 2012 Investment in Niagara Power Incorporated, as previously stated $ 15,570 Adjustments to future payments-in-lieu of taxes 853 Investment in Niagara Power Incorporated, restated $ 16,423 Presentation of 2013 Audited Financial Statements - Delight... Page 57 of 81

58 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 7 Year ended December 31, 2013 (in thousands of dollars) 3. Investment in Niagara Power Incorporated (continued): The following table provides condensed supplementary financial information for NPI for the year ended December 31, 2013 and for the year ended December 31, 2012: Assets: Current assets $ 8,068 $ 6,529 Capital assets 22,457 21,778 Long-term assets 1,173 2,013 Total assets 31,698 30,320 Liabilities: Current liabilities 6,044 5,436 Long-term liabilities 14,216 13,767 Total liabilities 20,260 19,203 Net assets $ 11,438 $ 11, Results of operations: Revenues $ 23,169 $ 21,798 Operating expenses 22,505 21,204 Net earnings Retained earnings, beginning of year 1,960 2,163 Adjustment on acquisition of subsidiary (715) Dividends (343) (82) Retained earnings, end of year $ 2,281 $ 1,960 Niagara Power Incorporated paid a dividend of $300 to the Town in 2013 ( $74). Presentation of 2013 Audited Financial Statements - Delight... Page 58 of 81

59 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 8 Year ended December 31, 2013 (in thousands of dollars) 4. Portfolio investments: Cost Market value Cost Market value Bonds $ 16,737 $ 16,456 $ 16,996 $ 16,945 Investments are carried at cost. The market value represents the realizable value of the investments if they were to be sold at December 31, The Town s investment policy as approved by Council is to maintain sufficient liquidity within the portfolio to be able to hold investments until maturity. Accordingly, the financial statements only recognize gains or losses on investments sold prior to maturity. 5. Deferred revenue general: Balance, beginning of year $ 185 $ 669 Add: contributions during the year Less: amounts recognized in revenue (86) (518) Less: refunds during the year (37) (116) Balance, end of year $ 315 $ 185 Presentation of 2013 Audited Financial Statements - Delight... Page 59 of 81

60 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 9 Year ended December 31, 2013 (in thousands of dollars) 6. Deferred revenue obligatory reserve funds: A requirement of Canadian public sector accounting standards of the Chartered Professional Accountants of Canada is that obligatory reserve funds be reported as deferred revenue. This requirement is in place as provincial legislation restricts how these funds may be used; under certain circumstances these funds may possibly be refunded. The balances in the obligatory reserve funds of the Town are summarized below: Development charges $ 4,285 $ 4,854 Park dedication fund Subdivision administration 1, Building Code Act 1, Other $ 7,251 $ 7,455 The deferred revenue-obligatory reserve funds, reported in the consolidated statement of financial position, are comprised of the following: Balance, beginning of year $ 7,455 $ 7,959 Contributions from: Development Charges Act 2, Subdivider contributions Recreational land Investment income Building Code Act Federal gasoline tax ,304 2,014 Utilization of funds (4,508) (2,518) Balance, end of year $ 7,251 $ 7,455 Presentation of 2013 Audited Financial Statements - Delight... Page 60 of 81

61 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 10 Year ended December 31, 2013 (in thousands of dollars) 7. Post-employment benefit liability: The Town makes available to qualifying employees who retire the opportunity to continue their coverage for such benefits as extended health and drugs, dental care and life insurance. The Town recognizes these post-retirement costs in the period in which the employees rendered the services. An actuarial estimate of future liabilities was completed for 2013 and forms the basis for the estimated liability reported in these financial statements. Information about the Town s benefit plan is as follows: Balance, beginning of year $ 671 $ 647 Current year benefit cost Retirement benefit interest cost Actuarial gain (62) (3) Benefits paid for the year (32) (40) Unamortized actuarial gain Balance, end of year $ 975 $ 980 The main actuarial assumptions employed for the valuations are as follows: (a) Interest (discount rate): The obligation as at December 31, 2013, of the present value of future liabilities and the expense for the 12 months ended December 31, 2013, were determined using a discount rate of 4.0% beginning January 1, 2013 increasing to 5.0% at December 31, (b) Medical costs: Medical costs were assumed to increase at a rate of 10.0% per annum in 2013 with future annual increases decreasing by 1% to an ultimate rate of 5%. (c) Dental costs: Dental costs were assumed to increase at the rate of 5.0% in 2013 and thereafter. Presentation of 2013 Audited Financial Statements - Delight... Page 61 of 81

62 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 11 Year ended December 31, 2013 (in thousands of dollars) 8. Net long-term liabilities: (a) The balance of the net long-term liabilities reported on the Consolidated Statement of Financial Position is made up as follows: Total long-term liabilities incurred by the Municipality and outstanding at the end of the year. Interest rates vary from 2% to 5.2% $ 891 $ 1,711 $ 891 $ 1,711 (b) The principal payments to be made on the outstanding net long-term liabilities are as follows: 2014 $ The repayments are to be funded by taxation revenue. (c) The long-term liabilities in (a) have been approved by by-law. The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. (d) Total charges for interest, which are reported on the Consolidated Statement of Financial Activities amounted to $76 ( $114). (e) The Town has a credit facility agreement with a Canadian financial institution bearing interest at the bank s prime rate less 0.5%. The maximum draw under the terms of the operating line is $2 million. At year-end the Town has not utilized any amount under this credit facility. Presentation of 2013 Audited Financial Statements - Delight... Page 62 of 81

63 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 12 Year ended December 31, 2013 (in thousands of dollars) 9. Tangible capital assets: 2013 Building Vehicles, Water and Land and Building Machinery and Wastewater Roads Work in Land Improvements Improvements Equipment Infrastructure Infrastructure Progress Total Cost: Balance, beginning of year $ 34,669 $ 3,773 $ 25,081 $ 10,672 $ 107,343 $ 120,583 $ 1,097 $ 303,218 Additions 2,154 1, ,942 4,276 3,811 21,709 Disposals (623) (385) (222) (3,825) (5,055) Balance, end of year $ 36,823 $ 4,964 $ 25,081 $ 10,384 $ 116,900 $ 124,637 $ 1,083 $ 319,872 Accumulated Amortization: Balance, beginning of year $ $ 1,362 $ 4,095 $ 5,351 $ 29,878 $ 33,303 $ $ 73,989 Disposals (622) (271) (158) (1,051) Amortization expense ,632 1,862 4,952 Balance, end of year $ $ 1,551 $ 4,470 $ 5,623 $ 31,239 $ 35,007 $ $ 77,890 Net book value, end of year $ 36,823 $ 3,413 $ 20,611 $ 4,761 $ 85,661 $ 89,630 $ 1,083 $ 241,982 Presentation of 2013 Audited Financial Statements - Delight... Page 63 of 81

64 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 13 Year ended December 31, 2013 (in thousands of dollars) 9. Tangible capital assets (continued): 2012 Building Vehicles, Water and Land and Building Machinery and Wastewater Roads Work in Land Improvements Improvements Equipment Infrastructure Infrastructure Progress Total Cost: Balance, beginning of year $ 34,669 $ 3,403 $ 23,733 $ 10,186 $ 106,065 $ 117,880 $ 1,234 $ 297,170 Additions 401 1, ,544 2,913 3,029 10,225 Disposals (31) (13) (491) (266) (210) (3,166) (4,177) Balance, end of year $ 34,669 $ 3,773 $ 25,081 $ 10,672 $ 107,343 $ 120,583 $ 1,097 $ 303,218 Accumulated Amortization: Balance, beginning of year $ $ 1,221 $ 3,736 $ 4,941 $ 28,523 $ 31,690 $ $ 70,111 Disposals (27) (3) (476) (200) (160) (866) Amortization expense ,555 1,773 4,744 Balance, end of year $ $ 1,362 $ 4,095 $ 5,351 $ 29,878 $ 33,303 $ $ 73,989 Net book value, end of year $ 34,669 $ 2,411 $ 20,986 $ 5,321 $ 77,465 $ 87,280 $ 1,097 $ 229,229 Presentation of 2013 Audited Financial Statements - Delight... Page 64 of 81

65 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 14 Year ended December 31, 2013 (in thousands of dollars) 9. Tangible capital assets (continued): (a) Assets under construction: Asset under construction having a value of $1,083 (2012 $1,097) have not been amortized. Amortization will commence when these assets are put into service. (b) Contributed tangible capital assets: The Town recognized $12,895 (2012 $1,024) in contributed tangible capital assets. These assets were recognized at their fair market value on the date of contribution. (c) Tangible capital assets disclosed at nominal values: Where an estimate of the fair value could not be made, the tangible capital asset was recognized at a nominal value. (d) Works of art and historical treasures: The Town manages and controls various works of art and cultural assets located at Town sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized. Presentation of 2013 Audited Financial Statements - Delight... Page 65 of 81

66 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 15 Year ended December 31, 2013 (in thousands of dollars) 10. Accumulated surplus: Accumulated surplus consists of individual fund surplus and reserves and reserve funds as follows: Reserves set aside by Council: Working funds $ 700 $ 700 Contingencies 2,766 2,180 Replacement of equipment 1, Insurance WSIB Parking revenues 6 6 Downtown Improvement Area 7 7 Other Capital projects: General government Protection services Transportation services 1,244 2,085 Environmental services 8,433 7,979 Social and family services Recreation and cultural services 1,112 1,106 Planning and development ,472 16,361 Reserve funds set aside for specific purpose by Council: Capital assets: Museum Tree planting Other 4,090 2,524 4,256 2,678 Surplus: Investment in tangible capital assets 241, ,229 Investment in government business enterprises 16,730 16,423 Unfunded: Debt for tangible capital assets (891) (1,711) Post-employment benefits (975) (980) 256, ,961 Total accumulated surplus $ 278,574 $ 262,000 Presentation of 2013 Audited Financial Statements - Delight... Page 66 of 81

67 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 16 Year ended December 31, 2013 (in thousands of dollars) 11. Commitments and contingencies: (a) 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 charges. An estimate of these contingencies cannot be made since the outcome of these matters is indeterminate at this time. Liability insurance coverage exists sufficient to cover known claims. (b) A subsidiary, Niagara Power Incorporated has guaranteed the indebtedness of its subsidiary, Niagara West Transformation Corporation, in the amount of $6,500. As of December 31, 2013, $4,308 ( $4,574) of the loan was outstanding and all financial covenants have been met. (c) A letter of credit in the amount of $965 ( $965) has been issued by Niagara Power Incorporated in favour of the Independent Electricity System Operator (IESO) as security for a subsidiary s purchase of electricity through the IESO. No amounts were drawn down on the letter of credit at year end. (d) As a shareholder of the Niagara Regional Broadband Network Limited (NRBN) Niagara Power Incorporated (NPI) along with three other shareholders, has guaranteed NRBN s term loan for $2,700. The company s maximum liability under this guarantee is 25% of the total guarantee or $675. In 2014, should the NRBN not attain a certain cash position, NPI must contribute $675 to NRBN. Subsequent to the year end it was determined that this contribution was not required. NPI has guaranteed the payment of a penalty in the event of early termination of a fixed rate loan agreement between Niagara West Transformation Corporation and a bank. The company s liability is estimated at $701 (2012 $1,028) and is recorded in its accounts payable and accrued liabilities. Presentation of 2013 Audited Financial Statements - Delight... Page 67 of 81

68 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 17 Year ended December 31, 2013 (in thousands of dollars) 11. Commitments and contingencies (continued): (e) The Town has pledged financial support of $2,500 to the West Lincoln Memorial Hospital Foundation for the Building Campaign. Such funds are to be provided on commencement of construction of the new hospital facility. The Town has also pledged $1,530 towards construction of the West Niagara YMCA in annual payments of $306 for five years. Payments were made from 2011 to 2013 leaving $612 of the obligation remaining. (f) The Town has committed funding to upgrade the Roberts Road sewage pump station. The total cost by the Region of Niagara is $2,250. The Town s share of this cost is $760. (g) The Town has committed to funding the Woodsview sewage pump station. The total estimated cost by the Region of Niagara is $1,500. The Town s estimated share of this cost is $750. (h) The estimated future capital expenses based on projects in progress at December 31, 2013 is approximately $109 ( $785) after deducting the expenses incurred as at December 31, These projects will be financed by grants and taxation revenue in a future year. 12. Workplace safety and insurance obligations: The Town is a Schedule II employer under the Workplace Safety & Insurance Act and follows a policy of self insurance for all its employees. An actuarial estimate of future liabilities has been completed and forms the basis for the estimated liability reported in these financial statements. The Town remits payments to the WSIB as required to fund disability payments. The estimated future liability relating to WSIB amounted to $NIL ( $NIL). A Workplace Safety and Insurance Reserve, funded by annual contributions from the revenue fund, has also been established to protect against any unknown future liability. The balance in the fund at December 31, 2013 was $157 (2012 $157). The Town also maintains an insurance policy, which protects the Corporation against single claims in excess of $250. Presentation of 2013 Audited Financial Statements - Delight... Page 68 of 81

69 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 18 Year ended December 31, 2013 (in thousands of dollars) 13. Operations of school boards and the Region of Niagara: Further to note 1 (a) (ii), the taxation and other revenues received or receivable on behalf of the school boards and the Region of Niagara are comprised of the following: School Boards Region Property taxation $ 9,522 $ 9,564 $ 22,208 $ 21,327 The Town is required to levy and collect taxes on behalf of the Region of Niagara and the school boards. The taxes levied over (under) the amounts requisitioned are recorded as accounts payable (receivable). The Town is also required to bill and collect water, sewer and development charges on behalf of the Region of Niagara. Water and sewer charges are recorded as revenue at the amounts billed. Water and sewer charges billed over (under) the amounts requisitioned are recorded as accounts payable (receivable). Development charges collected in excess of those paid to the Region are recorded as accounts payable. 14. Trust funds: Trust funds administered by the Town amounting to $935 ( $907) have not been included in the consolidated balance sheet nor have their operations been included in the consolidated statement of operations. 15. Pension agreements: The Town makes contributions to the Ontario Municipal Employees Retirement System (OMERS), which is a multi-employer plan, on behalf of 112 ( ) members of its staff. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. The amount contributed to OMERS for 2013 was $568 ( $ 511) for current service and is included as an expense on the consolidated statement of operations. Contribution rates for 2013 were 9.0% ( %) for employees earning below the year s maximum pensionable earnings and 14.6% ( %) for earnings above the year s maximum pensionable earnings. Contribution rates are anticipated to be similar in 2014 and for years thereafter. The OMERS plan has a deficit as of December 31, 2013 of $8.6 billion dollars ( $9.9 billion). If actuarial surpluses are not available to offset the existing deficit, increases in contributions may be required in the future. There are no outstanding obligations for past service at December 31, Presentation of 2013 Audited Financial Statements - Delight... Page 69 of 81

70 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 19 Year ended December 31, 2013 (in thousands of dollars) 16. Budget data: The budget data presented in these consolidated financial statements is based upon the 2013 budget approved by Council. The chart below reconciles the approved budget to the budget figures reported in these consolidated financial statements. Budget Amount Revenues: Operating budget $ 25,405 Capital budget 8,388 Less: Interfund transfers (4,902) Total revenue 28,891 Expenses: Operating budget 25,405 Capital budget 8,388 Less: Acquisition of tangible capital assets (7,003) Interfund transfers (3,965) Debt principal payments (799) Total expenses 22,026 Annual surplus $ 6, Supplemental cash flow information: Cash received during the year for: Interest $ 1,041 $ 1,611 Cash paid during the year for: Interest Presentation of 2013 Audited Financial Statements - Delight... Page 70 of 81

71 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 20 Year ended December 31, 2013 (in thousands of dollars) 18. Government transfers: The government transfers reported on the consolidated statement of financial activities are: Budget Actual Actual Revenues: Ontario grants: Ontario Municipal Partnership Fund $ 179 $ 134 $ 199 OMAFRA Drainage Superintendent Grant Operating grants: Senior Citizen s Centre Library Art Gallery Museum Federal grants: Federal gas tax JEPP Grant 3 Operating grants: Art Gallery Museum Wage subsidies $ 1,126 $ 882 $ 1,292 Presentation of 2013 Audited Financial Statements - Delight... Page 71 of 81

72 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 21 Year ended December 31, 2013 (in thousands of dollars) 19. Segmented reporting: The Town is a lower tier municipal government that provides a wide range of services to its citizens. Segmented information has been identified based on functional classification as categorized by the Financial Information Return. These classifications are as follows: (a) General Government: The mandate of this functional area is to provide political governance, administrative executive management and those expenses and revenues which are corporate in nature and cannot be easily apportioned to other departments. Reported in this functional area are departments such as Council, Clerks, Town Manager, Finance and Information Systems. (b) Protection to Persons and Property: Reported in this functional area are Fire and Building Services. The mandate of Fire Services is to provide emergency services through a range of services to protect the lives and property of the inhabitants of the Town. The mandate of Building Services is to inform and assist customers to ensure safe and orderly development and provide efficient delivery of building approvals, inspections and management systems. (c) Transportation Services: Reported in this functional area are Roadways and Winter Control. The mandate for Roadways is to provide quality road and traffic maintenance and operations to the residents and businesses of the Town. This area is also responsible for winter control. (d) Environmental Services: Reported in this functional area are Sanitary, Storm and Water Systems. The mandate is to provide a safe and reliable water resource system and is responsible for the maintenance and operation of the systems and monitoring and administering environmental programs. (e) Recreation and Cultural Services: Reported in this functional area are Parks, Recreation and Culture. The Parks department is responsible for the maintenance, improvement and beautification of various parks as well as the planning and construction of new parkland and open space. The Recreation and Culture departments are responsible for the delivery of various related programs and the provision of facilities as well as the support of groups and organizations throughout the Town. Presentation of 2013 Audited Financial Statements - Delight... Page 72 of 81

73 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, page 22 Year ended December 31, 2013 (in thousands of dollars) 19. Segmented reporting (continued): (f) Planning and Development: The Planning department creates the policy framework and implementation tools required to shape the future of the Town. The department is responsible for ensuring that the Town s land development standards are achieved on all development applications. 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. The accounting policies used in these segments are consistent with those followed in the preparation of the consolidated financial statements. Presentation of 2013 Audited Financial Statements - Delight... Page 73 of 81

74 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, Page 23 Year ended December 31, 2013 (in thousands of dollars) 19. Segmented reporting (continued): 2013 Protection Recreation to Persons and Planning Other General and Transportation Environmental Cultural and and Government Property Services Services Services Development Unallocated Total Revenues: Property taxation $ 1,189 $ 1,097 $ 2,833 $ 5,389 $ 3,207 $ 270 $ 128 $ 14,113 Taxation from other governments User fees ,305 1, ,121 Government transfers Development charges 2, ,018 Investment income Other ,392 8, ,219 Total revenues $ 4,349 $ 1,734 $ 9,327 $ 19,405 $ 6,432 $ 569 $ 441 $ 42,257 Expenses: Salaries, wages and benefits $ 1,323 $ 1,509 $ 1,468 $ 1,627 $ 2,586 $ 448 $ 325 $ 9,286 Materials , , ,740 Contracted services , ,786 Rents and financial expenses External transfers Interfunctional expenses (461) 55 (273) (42) Amortization ,189 2, ,994 Total expenses $ 2,241 $ 2,134 $ 3,989 $ 11,225 $ 4,881 $ 694 $ 519 $ 25,683 Annual surplus (deficit) $ 2,108 $ (400) $ 5,338 $ 8,180 $ 1,551 $ (125) $ (78) $ 16,574 Presentation of 2013 Audited Financial Statements - Delight... Page 74 of 81

75 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, page 24 Year ended December 31, 2013 (in thousands of dollars) 19. Segmented reporting (continued): 2012 Protection Recreation to Persons and Planning Other General and Transportation Environmental Cultural and and Government Property Services Services Services Development Unallocated Total Revenues: Property taxation $ 1,069 $ 946 $ 2,873 $ 5,696 $ 2,866 $ 219 $ 121 $ 13,790 Taxation from other governments User fees ,363 1, ,553 Government transfers 1, ,292 Development charges Investment income ,074 Other , ,543 Total revenues $ 2,700 $ 1,645 $ 5,874 $ 11,430 $ 5,996 $ 448 $ 417 $ 28,510 Expenses: Salaries, wages and benefits $ 1,341 $ 1,430 $ 1,451 $ 1,539 $ 2,485 $ 407 $ 304 $ 8,957 Materials , ,128 Contracted services , ,126 Rents and financial expenses External transfers Interfunctional expenses (423) 51 (176) Amortization ,080 2, ,745 Total expenses $ 2,477 $ 2,039 $ 3,606 $ 9,978 $ 4,784 $ 593 $ 478 $ 23,955 Annual surplus (deficit) $ 223 $ (394) $ 2,268 $ 1,452 $ 1,212 $ (145) $ (61) $ 4,555 Presentation of 2013 Audited Financial Statements - Delight... Page 75 of 81

76 Agenda Item #vi) THE CORPORATION OF THE TOWN OF GRIMSBY Notes to Consolidated Financial Statements, page 25 Year ended December 31, 2013 (in thousands of dollars) 20. Change in accounting policies: (a) Government transfers: On January 1, 2013 the Town adopted PSAB section PS 3410, Government Transfers. This standard was adopted on a prospective basis. Under PS 3410, government transfers received or receivable are recognized in revenue when all eligibility criteria have been met unless they meet the definition of a liability. (b) Taxation revenue: On January 1, 2013 the Town adopted PSAB section PS 3510, Tax Revenue. This standard was adopted on a prospective basis. Under PS 3510, taxes receivable and tax revenue are recognized when they meet the definition of an asset, the tax is authorized and the taxable event has occurred. 21. Comparative figures: Certain comparative figures have been reclassified to conform with the financial statement presentation adopted in the current year. Presentation of 2013 Audited Financial Statements - Delight... Page 76 of 81

77 Agenda Item #vi) Financial Statements of THE CORPORATION OF THE TOWN OF GRIMSBY Year ended December 31, 2013 Presentation of 2013 Audited Financial Statements - Delight... Page 77 of 81

78 FIN Finance Department Staffing Page 78 of 81 Agenda Item #vii)

79 FIN Finance Department Staffing Page 79 of 81 Agenda Item #vii)

80 FIN Finance Department Staffing Page 80 of 81 Agenda Item #vii)

81 FIN Finance Department Staffing Page 81 of 81 Agenda Item #vii)