ANNUAL FINANCIAL REPORT

Transcription

1 2013 ANNUAL FINANCIAL REPORT the County of Wellington County of Wellington, Ontario For the year ended December 31, 2013

2 The 2013 Annual Financial Report for the Corporation of the County of Wellington, Ontario, Canada. For the fiscal year ending December 31, Produced by the Treasury Department of the County of Wellington, in cooperation with all lower tier municipalities. For information on programmes and services, or to obtain a copy of this document, please contact: The County of Wellington Woolwich St Guelph, ON N1H 3T9 2

3 Table of Contents Introduction 4 County of Wellington at a Glance 6 Wellington Council Message from the Warden 9 Department Heads 10 Corporate Organizational Chart 11 County Services 14 Economic Development Highlights 17 Report from the County Treasurer 21 Management Discussion and Analysis 24 Annual Budget Reconciliation Financial Statements 27 Auditor s Report 28 Consolidated Statement of Financial Position 29 Consolidated Statement of Operations 30 Consolidated Statement of Change in Net Financial Assets 31 Consolidated Statement of Cash Flows 32 Notes to the Financial Statements 57 Trust Fund Auditor s Report 59 Trust Fund Financial Statements 61 Notes to Trust Fund Financial Statements Statistical Data 63 Five-Year Financial Statistics (unaudited) 71 Acknowledgements 3

4 County of Wellington at a Glance Wellington County is located in south-western Ontario just over 100 kilometres west of Toronto. Four renowned post-secondary institutions surround the County including the University of Waterloo, University of Guelph, Wilfrid Laurier University and Conestoga College. The County of Wellington has a vibrant economy and an active economic development office. The key industries in Wellington County are manufacturing, agriculture, health care and the creative economy. Proximity to vital transportation corridors and urban centres, as well as high speed broadband coverage and excellent green space make Wellington an attractive place to both work and live. In 2009, the County was named one of Canada's Top 100 Employers by MediaCorp Inc. and Maclean's magazine. The County is made up of the following seven lower tier municipalities. Township of Centre Wellington Township of Mapleton Town of Erin Town of Minto Township of Guelph/Eramosa Township of Puslinch Township of Wellington North

5 Population 95,784 Land area 2,610km 2 Businesses 2,950 Average household income $97,453 Households 32,651 Libraries 14 Workforce 52,401 Labour force growth ( ) 18% Municipalities 7 Credit rating AA Job growth 5.2% Annual budget $176 million 5

6 Wellington Council (Back Row Left to Right - Mark MacKenzie, Don McKay, Lou Maieron, Bruce Whale, Lynda White, Gary Williamson, Gordon Tosh, Dennis Lever) (Front Row Left to Right - Shawn Watters, Joanne Ross-Zuj, Jean Innes, Raymond Tout, Chris White, John Green, Ken Chapman, George Bridge) Warden Chris White Mayor, Township of Guelph/ Eramosa T Councillor George Bridge Mayor, Town of Minto T Councillor John Green County Ward 2 T Councillor Shawn Watters County Ward 6 T Councillor Joanne Ross-Zuj Mayor, Township of Centre Wellington T Councillor Dennis Lever Mayor, Township of Puslinch T Councillor Gary Williamson County Ward 3 T Councillor Don McKay County Ward 7 T Councillor Lou Maieron Mayor, Town of Erin T Councillor Raymond Tout Mayor, Township of Wellington North T Councillor Lynda White County Ward 4 T Councillor Gordon Tosh County Ward 8 T Councillor Bruce Whale Mayor, Township of Mapleton T Councillor Mark MacKenzie County Ward 1 T Councillor Jean Innes County Ward 5 T Councillor Ken Chapman County Ward 9 T

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8 COUNTY OF WELLINGTON OFFICE OF THE WARDEN 74 WOOLWICH STREET GUELPH, ONTARIO T x 2550 N1H 3T9 F E warden@wellington.ca June 19, 2014 Dear Residents of Wellington County: It is my pleasure to present you with the County s first Annual Financial Report for the year 2013 on behalf of County Council and the employees of the County of Wellington. In 2013, the County was able to provide high-quality services and capital investment while maintaining a strong financial position. As a result the County was able to: Increase annual capital investment by 29% including providing funding for the Tower Street Bridge, the North Wellington OPP Operations Centre, the new Health Unit facilities in Orangeville and Guelph, and the Wellington Terrace Roof replacement. Complete approximately 15 kilometres of road resurfacing, construct two new roundabouts on Wellington Road 34, and replace a culvert on Wellington Road 12. Continue the implementation of the Wellington County Economic Development Strategy and successfully receive a $95,000 grant from the Ontario Ministry of Economic Development, Trade and Employment to assist with the implementation. As well, the County received the Economic Development Association of Canada Brand Identity award for Taste Real initiatives. Take the title of Canada s safest community as named by Maclean s magazine, be named one of Canada s Safest Employers and be officially designated as a Safe Community. Improve Wellington County s Credit Rating to AA with a positive outlook. End the year with a $1.05 million operating budget surplus that will be used to fund the remainder of the County s obligation for the new Health Unit facilities and avoid the issuance of further debt. Offset the significant negative variance in Winter Control ($1.6 million) due to extreme winter conditions with other County department savings and efficiencies and avoid using County reserves. Celebrate the Green Legacy Programme s 10th Anniversary with over 1.5 million trees being planted since the programme began, making it the largest municipal tree planting programme in North America. Receive the Ontario Library Association s New Library Building Award for the new branch in Puslinch. I would like to thank County Staff for preparing the Annual Report, and Council for their ongoing oversight of County activities, strong leadership and well-informed decision making. Chris White Wellington County Warden 8

9 Department Heads Back Row Left to Right - Gary Cousins, Gord Ough, Scott Lawson (OPP Detachment Commander), Scott Wilson, Eddie Alton, Peter Barnes, Ken DeHart, Murray McCabe Front Row Left to Right - Janice Hindley, Donna Bryce (County Clerk), Andrea Lawson, Sumita Pillay-Dason (County Solicitor) 9

10 Corporate Organizational Chart The County of Wellington has the Chief Administrative Officer (CAO) system of management. The CAO reports to the Warden and Council on all major initiatives and issues affecting the County. The Chief Administrative Officer attends all Council, Standing Committee, Police Services Board and Library Board meetings and provides advice and information on operations as required. The CAO ensures that direction from County Council, its Committees and Boards is implemented in conformity with applicable County policy, and Provincial and Federal legislation/regulations. The Chief Administrative Officer has overall responsibility for the County s operating departments. Department heads, the County Clerk, the County Construction and Property Manager, the Community Emergency Management Coordinator, the Economic Development Officer and the Communications Manager are responsible for the day-to-day operations of the departments and report directly to the CAO. 10

11 County Services The Wellington Terrace Wellington Terrace is the County's Long Term Care Home. Located in Centre Wellington, it has 176 approved beds and provides skilled nursing care in a residential setting. The Wellington Terrace is committed to providing compassionate care honouring the unique needs of each resident. The Terrace is responsible for providing nursing healthcare to residents, recreation and restorative services for residents, and comfort for those in the final stages of life. Library Services The Wellington County Library system consists of 14 branches located in the communities of Aboyne, Arthur, Clifford, Drayton, Elora, Erin, Fergus, Harriston, Hillsburgh, Marden, Mount Forest, Palmerston, Puslinch, and Rockwood. The libraries provide access to a rich and broad range of print materials and electronic resources to meet the information needs of each community. The library system also enjoys a weekday courier service that makes stops at all fourteen branches ensuring patrons have easy access to materials held at all the libraries. Membership is free to County residents. Museum and Archives Wellington County Museum and Archives (WCMA) is a National Historic Site located in Aboyne. It was originally built as the House of Industry and Refuge in 1877 and is the oldest remaining Poor House in Canada. WCMA serves as a cultural centre providing resources, programmes, exhibits, support and services for historical, educational and artistic interests of the communities of Wellington County. WCMA collects, preserves, researches, interprets and exhibits artifacts and archival records that reflect and document the settlement and development of the County of Wellington. Roads The mission of the Roads Department is to provide a safe and efficient transportation network for the movement of people and products throughout the County of Wellington, while preserving the public investment in the road system and protecting the natural state of the environment. Roads staff ensure this by managing and maintaining 1,435 lanekilometres of roadways, 107 bridges and 84 culverts. Solid Waste Services The Solid Waste Services Department provides programmes to collect, divert, or dispose of municipal solid waste and recyclables. Responsibilities include overseeing landfill sites, transfer stations, and Reuse Centres. Solid Waste Services staff facilitate curbside collection of garbage and recyclables, as well as recycling and safe disposal of Household Hazardous Waste. 11

12 Planning and Development The Planning Department is responsible for approving official plan amendments, developing County planning policies, approving new lots, providing emergency management services, reviewing development proposals, managing County forests, developing rail trails, and creating County maps. The Green Legacy is the largest municipal tree planting programme in North America. In 2010, the programme was recognized under the Billion Tree Campaign for their help in the fight against climate change. Social Services The County of Wellington is the Consolidated Municipal Services Manager (CMSM) for Social Services in the City of Guelph and County of Wellington. These social services include Ontario Works, Child Care Services, and Social Housing Services. The costs to provide these services are shared with the City of Guelph based upon residence of recipient (Ontario Works and Child Care fee subsidy), location of child care centre (Child care wage subsidy) or prior residence (Social Housing tenants). Ontario Works is responsible for helping people in temporary need of financial support find sustainable employment and achieve self-reliance through the provision of employment services and financial assistance. The County s Child Care Services Department invests in and supports an affordable, accessible, and accountable child care system which benefits children, their parents and caregivers, and the broader community. Services include child care subsidies for financially eligible families; special needs resourcing; wage subsidies to increase the overall level of wages paid to child care workers; and quality monitoring, training and support. The goal of the Housing Services Department is to ensure effective, efficient and fair provision of high quality affordable housing to residents of Wellington County and the City of Guelph. The department strives to create innovative solutions to local housing needs in cooperation with tenants and the local community. Services provided include programmes that address rental affordability, loan assistance, as well as financial assistance to increase the accessibility of homes. Economic Development The goal of the County s Economic Development Department is to grow the economy and build on the community s many existing strengths. The County works as a facilitator, connecting businesses with resources, contacts, and supply chain opportunities. These efforts are aligned and promoted on a County level, to ensure employers, newcomers and investors can make informed decisions. 12

13 Police Services The County of Wellington has a contract with the Ontario Provincial Police (OPP) to provide policing services. The County s OPP Detachment was formed in 1999 as a result of the amalgamation of municipal police services in Fergus, Harriston, and Palmerston along with the Guelph and Mount Forest Detachments of the OPP. This amalgamation resulted in the OPP being responsible for providing police services for the entire County excluding the City of Guelph. There are three operation centres in North Wellington, Aboyne and Rockwood. In 2014, Wellington County OPP will commence operations out of a new North Wellington operations centre located in Teviotdale. The Police Services Board oversees police operations in Wellington County. Land Ambulance Ambulance services for Wellington County are provided by the City of Guelph and are cost shared based on the proportion of call codes 1-4 in each municipality. The City of Guelph was designated as the delivery agent by the Province of Ontario and assumed responsibility for service delivery in Guelph-Wellington Emergency Medical Service (EMS) provides emergency pre-hospital medical care to Guelph and Wellington County and serves a resident population of over 200,000 across more than 2,600 square kilometres from eight ambulance bases. Provincial Offences Court The City of Guelph delivers Provincial Offences Act (POA) administration and prosecution on behalf of Wellington County and its member municipalities. The City provides administration for the Ontario Court of Justice with respect to all provincial offences and prosecution services regarding Part I Provincial Offences Act charges ( tickets ). These charges include tickets issued pursuant to the Highway Traffic Act, Liquor Licence Act and similar provincial statutes. The County shares in the net revenue which is distributed between the City and County based on location of each offence. Wellington County and the City of Guelph also cost share capital expenses on a 50/50 basis. Public Health Services Public Health Services are provided by the Wellington-Dufferin-Guelph Public Health (WDGPH) Unit. WDGPH was formed in 1967 and is governed by an autonomous Board of Health consisting of elected and appointed representatives from the Counties of Wellington and Dufferin and the City of Guelph. WDGPH receives an annual operating grant from the Province of Ontario and the net municipal cost is then funded by Guelph (45.9%), Wellington (32.7%) and Dufferin (21.4%) in proportion to their population based on 2011 census figures. In 2013 the County contributed almost $5.2 million towards the cost to build two new facilities in Guelph and Orangeville. An additional $900,000 will be provided in

14 Economic Development Highlights Since having completed our first Economic Development Strategy in 2013, the County of Wellington has moved swiftly to undertake its Economic Development Implementation Plan. Our Council recognizes the need to better support our economy and to build on many of our existing strengths. Our emphasis on promoting the County through effective programming is oriented at growing the economic potential of all of our communities. The Plan focuses on the following four activities, slated for completion by early County of Wellington Economic Development Webpage (in progress) Sector Investment Profiles: Manufacturing, Agriculture, Health Care and Professional Services Jana Reichert Economic Development Officer Workforce Development and Attraction Strategy (complete) Countywide Business Retention and Expansion Programme (BR+E) (complete, now implementation) At the County we believe the greatest potential to grow the economy rests with the employers that have already invested in Wellington. The four activities in The Plan will provide us with the data we need to make informed decisions to support business and promote Wellington. Beginning September, the County undertook the first Wellington Business Retention and Expansion (BR+E) project. This project was pivotal in understanding our business climate, competitive advantages and where private sector challenges lie. The BR+E project will shape all ongoing County Economic Development initiatives and is tightly aligned with municipal development activities, as we felt it to be a foundational programme with which to guide our future economic development activities. We are aware that Wellington is an excellent place to live and run a business and that now is time for a coordinated approach to communicating these opportunities with the world. By committing efforts to begin recognizing our economic contributors and ensuring they have the labour and infrastructure in place to grow successfully, the County is confident that we are on the right path for economic prosperity. We are proud of our communities and look forward to the opportunities we have for creating jobs and enhancing our quality of place. 14

15 What We ve Been Up To May to November 2012: Wellington Economic Development (ED) Strategic Planning Process, over 550 consultations via surveys, public forums, business interviews and planning sessions November 2012: County approves Wellington ED Strategy November 2012 to September 2013: County renovates Governor s Residence for Wellington ED November 2012: Wellington wins prestigious EDCO Product Development Award and Ontario Culinary Tourism 2012 Leadership Alliance award for Taste Real local food programme January 2013: Wellington Guelph Economic Summit sold out event, Wellington presents introduction to ED work, session to identify synergies for joint projects (regional transportation, workforce, business resources, youth) March 2013: County approves Wellington ED Implementation Plan (ED County Role and Four Focus Projects ) May 2013: County of Wellington receives $95,000 grant to complete Wellington ED Implementation Plan (Ontario Ministry of Economic Development, Trade and Employment Communities in Transition programme) May 2013: Wellington undertakes Workforce Strategy June 2013: County receives Safe Communities designation June 2013: County acquires Business Retention and Expansion Coordinator (9 month contract via provincial grant) Where We re Headed Steady population and employment forecasts to 2041 BR+E interviews, data analysis, employer summit and final report BR+E data to feed Key Sector Profiles for investment attraction Economic Development website design and content build 15

16 Socio Economic Highlights Higher than provincial growth in local jobs since 2006 Lower than regional and provincial unemployment 4.2% Despite economic downturn, manufacturing strong in Wellington; local concentration increased since 2009 supported by higher than provincial concentration of trades professionals Agriculture sector successful in job growth and development activity 53% resident workers accredited with an apprenticeship, college or university degree 2012 Commercial and Industrial development substantial increase over 2011 What We ve Been Recognized For Safe Communities Designation $95,000 provincial grant to assist with ED Implementation Plan 2012 EDCO Product Development Award 2012 Leadership Award Greater media coverage (Radio, Canadian Business Journal, TV) 16

17 Report from the County Treasurer Ken DeHart, CPA, CGA The County of Wellington is committed to the continuous improvement of its financial management activities, including the annual budget and financial reporting processes. I am proud to present to you the County s first comprehensive annual report for the year The County has made several improvements to its processes over the past few years to enhance its long term financial planning activities, including: A new integrated corporate financial and human resources system to eliminate or significantly reduce interdepartmental and system reconciliations to increase efficiency of staff Implementation of accrual accounting from fund accounting and inclusion of Tangible Capital Assets (TCA) in the financial statements Development of a County-wide Asset Management Plan to ensure the long-term financial sustainability of its assets The introduction of an Energy Management Plan to reduce the County s carbon footprint and to provide for energy efficient practices to reduce waste and increase efficiency at County facilities This new Annual Financial Report continues the County s commitment to improve the openness, transparency and accountability of its operations. review with Standard and Poor s when the bond rating agency improved the outlook on the County s rating from AA (stable) to AA (positive) in Standard and Poor s identifies the County of Wellington s major strengths to be its predictable and well-balanced local government framework, strong budgetary performance, low debt burden and very positive liquidity position. An area of weakness cited by the credit rating agency is the County s economic concentration in the manufacturing sector. However, growth in job creation in the County s manufacturing sector has been strong with an increase in jobs from 2009 to 2013 of 15%, with total jobs increasing by 11%. The County is devoting substantial funding to the implementation of the Economic Development Strategy which may assist in developing a more diverse economy including growth in the health care, alternative energy and creative professional sectors. Operating Results As described further on pages of this report, the County approves its budget and reports regularly on its financial results on a modified accrual (cash) basis of reporting. For practical purposes, this provides the best measure for property taxes that were collected and spent for their intended purpose. The County s 2013 year-end position on a modified accrual (cash) basis was a surplus of $1,046,100, which is 1.3% of the 2013 tax levy. Strong Financial Performance Wellington County has a strong financial footing due to the commitment of County Council and staff to provide effective and efficient services to County residents and ratepayers. This was reaffirmed during the County s credit rating 17

18 Report from the County Treasurer Ken DeHart, CPA, CGA As approved by County Council, the surplus will be transferred to the County Property Reserve to fund the remainder of the contribution to the Health Unit Facility project to eliminate the need to issue any further debt to finance the initiative. Severe winter weather in 2013 caused a large expenditure variance in the Roads Department for winter control. However, this amount was offset by savings and efficiencies in other departments and eliminated the need for the County to access its Winter Control Reserve in the anticipation of further severe weather thus far in Long-Term Financial Planning The County s long-term financial planning process aims to create a local government that is financially resilient. That is a system that is able to provide services to its residents and ratepayers at a reasonable cost while maintaining its ability to absorb external shocks including economic downturns, severe weather conditions and policy changes by other levels of government. County Council oversees our long-term financial plan, which balances three areas of financial resiliency including: 1. Financial Sustainability: addresses the County s stability. It is the ability to provide and maintain service and infrastructure levels without resorting to unplanned increases in rates or cuts to services. 2. Financial Vulnerability: addresses the County s vulnerability to external sources of funding that it cannot control. It is focused on minimizing the level of risk that could impact the County s ability to meet existing financial obligations and commitments, including the delivery of services. 3. Financial Flexibility: is the County s ability to issue debt responsibly without impacting the credit rating or ability to generate required revenues. It is the County s capacity to change debt or tax levels to meet financial obligations. Council Oversight Long-Term Financial Planning FINANCIAL SUSTAINABILITY Budget and 5-Year Plan Asset Management Plan Reserves and Reserve Funds Policy FINANCIAL VULNERABILITY Property Tax Assessment Base Management Cash and Investment Management Policy Users Pay Where Appropriate User Fee By-Laws Development Charge By-Law FINANCIAL FLEXIBILITY Capital Budget and Long Term Financing Policy Credit Rating Reviews Maintenance of Liquidity Financial Sustainability Wellington efficiently manages its resources to ensure the current needs of its citizens are met without jeopardizing the ability for future generations to meet their own needs. This requires long term planning through multi-year budgeting. The County annually prepares a five-year operating and capital budget and forecast that provides for consistent contributions to reserves and reserve funds and recognizes the ongoing operating costs associated with capital projects. 18

19 Report from the County Treasurer Ken DeHart, CPA, CGA This diligent reserve and reserve fund management allows the County to avoid the issuance of debt for the repair, rehabilitation and replacement of existing assets where possible, build up funding for future liabilities such as landfill closure and post-closure costs and provides contingency funding for unexpected events. The County recognizes its responsibility to provide good stewardship of public assets and has prepared 10 year asset management plans for the majority of its capital assets including roads, bridges, culverts and County owned social housing units. and high liquidity. Both of these characteristics provide the flexibility to adapt to external challenges such as extreme weather conditions or reduced funding by higher levels of government. The County is also currently implementing a new web based budgeting software that will allow for better modelling to demonstrate the impact of changes and enhance departmental engagement in the budgeting process. Financial Vulnerability As the amount of funding flowing from higher levels of government is declining, it is important that the County manage its existing revenue sources effectively. The County actively manages its property tax assessment base to ensure that properties are added to the roll in a timely manner and are assessed in a fair and consistent basis. The County is currently implementing its Economic Development strategic plan to assist current business owners in their continued success and to attract new investment into the County to increase commercial and industrial assessment. The County s Cash and Investment Management Policy ensures the prudent investment of funds while adhering to statutory requirements, preserving capital, maintaining liquidity and generating a competitive rate of return. As well, the County charges user fees and collects development charges to assist with funding where appropriate and to ensure growth pays for growth to the maximum extent possible. Financial Flexibility The Capital Budget and Long-Term Financing Policy governs the preparation of the capital budget and financing of the County s long-term infrastructure and facility requirements including the efficient management of long-term debt. A manageable debt load requires lower fixed debt servicing costs and ensures more funding is available for operations. Wellington s credit rating was upgraded to AA with a positive outlook in 2013 in part due to its manageable debt load Financial Ratio Analysis The following page shows a number of ratios used by Standard and Poor s and County staff to assess the ongoing financial health of the corporation. Explanations for year-overyear changes are provided for comparison purposes. The ratios show the continued strength of the County s financial operations. I hope that you find this annual report informative and helpful in assessing the County s financial health. Please do not hesitate to contact the County s Treasury Department with any questions at Sincerely, Ken DeHart, CPA, CGA County Treasurer 19

20 Report from the County Treasurer Ken DeHart, CPA, CGA Financial Indicator Status Compared to Prior Year Explanation Capital Expenditures/ Total Expenditures 18.9% 14.9% Modifiable Revenue/ Total Operating 77.7% 77.7% Revenue* Operating Balance/ Total Operating 16.8% 15.4% Revenue* After-Capital Balance/ Total Operating -1.1% 3.6% Revenue* Free Cash and Liquid Assets/Debt Service 19.2 X 18.9 X Tax Supported Debt/ Total Operating 24.0% 20.9% Revenue* Debt Interest/Total Operating Revenue* 1.1% 1.1% Reserve to Debt Ratio 2:1 2:1 Wellington County's capital expenditures have increased to almost 19% of 2013 total expenditures, which brings the County closer to its peers for spending. Wellington County's budget flexibility continues to be positive on the revenue side with modifiable (own source) revenues in 2013 of about 78% of adjusted operating revenues. These own source revenues include property taxes and user fees and charges which can be increased or decreased based on need. The County continues to generate strong operating surpluses as a share of adjusted operating revenues. At 16.8% this is higher than the five-year average of 15%. As expected the County has a one-time after-capital deficit due to capital expenditures being 35% higher in 2013 than The deficit primarily relates to the issuance of debt to finance the County s share of the Public Health Unit facilities. Wellington County has a very strong liquidity position with adjusted free cash and liquid assets totalling $80 million in This covers the estimated debt service in 2014 over 19 times. At fiscal year-end 2013, tax supported debt was 24% of consolidated revenues. This is the peak expected due to large capital expenditures in 2013 and no debt is expected to be issued in This debt is manageable and remains below 30% of consolidated operating revenues. This ratio is positive, stable and indicates that only 1.1% of the County s adjusted operating revenues are committed to funding debt interest charges. This ratio is positive, stable and indicates that the County has $2 in reserves and reserve funds for every $1 in debt. This provides a good indication that the debt load is manageable. * Note: Total Operating Revenue is adjusted to exclude income support grants, federal and provincial tangible capital asset (TCA) grants, revenue from other municipalities for TCAs, gain/loss on sales of land and capital assets, deferred revenue earned (development charges), donations and donated TCAs. 20

21 Management Discussion and Analysis Management and Auditor Responsibilities Management at the County of Wellington is responsible for the accuracy of the data presented in the 2013 Annual Report and the completeness and fairness of the financial statements, including all disclosures. The purpose of management s financial discussion is to analyze and comment on the principal features of the 2013 audited financial statements and to highlight key financial results that occurred during the year. This discussion allows readers to assess the County s financial activities and available resources. More generally, the 2013 Annual Report serves to provide stakeholders with full access to the County s financial statements with supplemental information, both financial and non-financial, that provides readers with a detailed view of the year s activities. The presented financial statements and accompanying notes meet the accounting principles and disclosure requirements of the Canadian Institute of Chartered Accountants guidelines included in the Public Sector Accounting and Auditing Standards Manual. The financial statements have been examined by KPMG, LLP Chartered Professional Accountants, the external auditors for the Corporation of the County of Wellington. The responsibility of the external auditor is to express an opinion on whether the financial statements are fairly represented, in all material respects, in accordance with Canadian generally accepted accounting principles. Financial Policies As discussed in the Report from the County Treasurer, the County follows financial policies to govern budgeting and finance activities. These policies are regularly updated to reflect applicable legislation and internal procedures. The purpose of the Reserve and Reserve Fund policy is to establish the principles regarding the creation, funding, use and closing of reserves and reserve funds in order to promote a long-term, strategic approach to the use of such funds as a financing tool. The Treasury Department also develops policies for: Cash and Investment Management Budget Review, Approval, and Amendment Budget Variance Reporting Capital Budget and Long Term Financing Receivables Management Year End Accounting; and Purchasing and Risk Management Asset Management Plan Wellington County is committed to long-term asset management planning. In February 2013, Council approved an Asset Management Policy and Programme to develop asset management plans for the following major classifications: Roads, Bridges and Culverts Social Housing Units Buildings and Properties Technology and Communication (software, hardware, radio equipment) Equipment (vehicles and machinery) Furniture and Fixtures Library Collections The County has taken a phased approach to the development of these asset management plans and has focused efforts in 2013 on developing plans for roads, bridges, culverts and social housing units. These areas make up over 75% of the historic value of County assets and are most likely to benefit from senior government funding announcements. Overall, the roads, bridges, culverts and County owned social housing units are in a good state of repair and provide an acceptable level of service to the community. Staff analysis and review from a longer term perspective will continue throughout the coming months and recommendations for financing or asset management strategies may be brought forward for consideration in the 2015 budget process. 21

22 Management Discussion and Analysis 2013 Financial Highlights In 2013, the County budget allocated approximately 30% ($24 million) of the net tax levy requirement towards capital projects (major and minor), capital reserves and capital related debt repayment. The following initiatives were undertaken throughout the year: $5.2 million County contribution to new Guelph and Orangeville public health unit facilities $12.9 million investment in roads and bridges to maintain a safe and efficient transportation network across the County $2.5 million invested in Wellington Terrace Long Term Care Facility $700,000 renovation to open a new Economic Development centre $5 million investment in Fergus library expansion and renovation $7.5 million investment in a new Teviotdale OPP detachment $30,000 investment in Economic Development landing page on County website, including interactive business directory, business testimonial videos and resource page $25,000 investment in County-wide Business Retention and Expansion (BR+E) project $20,000 investment in County of Wellington Workforce Strategy $50,000 dedicated to creating four key sector profiles for investment attraction (2014) Consolidated Statement of Financial Position Net Financial Assets Variance % Change Financial Assets $107,740,395 $97,437,824 10,302,571 11% Less Financial Liabilities $78,782,722 $67,652,784 11,129,938 16% Net Financial Assets $28,957,673 $29,785,040 (827,367) (3%) 22

23 Report from the County Treasurer Management Discussion and Analysis Ken DeHart, CGA Prospects for the Future The County s 2014 budget highlights the following projects for the upcoming years: $15.9 million investment in roads and bridges to maintain a safe and efficient transportation network across the County. Development of the Wellington Place lands in Centre Wellington to coincide with the construction of the new Groves Memorial Hospital. Plans include land servicing, roadway improvements and the development of a six acre parcel of land known as The Commons. Completion and opening of the newly renovated and expanded Fergus Library. Renovation and expansion of the Palmerston Library in 2014 and County Tax Levy Projection Actual Construction of a new Hillsburgh Library in 2015 and Completion of the Trans-Canada Trail by linking Elora to Ariss and the Kissing Bridge Trail. Completion and opening of the new North Wellington O.P.P. Operations Centre in Teviotdale. New addition of a Staff Sergeant and two civilian policing positions to enhance community safety. Construction of a new Willowdale Child Care and Learning Centre to be completed in late Economic Development initiatives including: a new County of Wellington marketing strategy, County-Wide Business Retention and Expansion (BR+E) Plan Implementation and a Local Municipal BR+E Fund. Projected County Tax Levy ($000 s) $77,912 $81,125 $85,140 $89,671 $94,235 $98,012 Residential Tax Impact 2.4% 2.2% 3.9% 4.3% 4.1% 3.0% 2014 Operating Budget Operating expenditure = $183.8 million Capital Expenditures 2014 tax levy = $81.1 million County tax impact = 2.2%, which on average results in 1.1% on the total residential property tax bill Residential tax impact per $100,000 of assessment = $ Budget Forecast Total 2014 capital investment = $28.1 million Total 5 year capital investment = $111.6 million No new property tax supported debt in the capital forecast, only one project to be supported by growth related debt Total debt outstanding peaks at $38.5 million in

24 Annual Budget Reconciliation The County of Wellington approves its annual operating and capital budgets using the modified accrual basis of accounting. The annual (audited) financial statements are presented on a full accrual basis of accounting. In order to help the reader understand the differences between the two basis of accounting, a conversion or reconciliation of the budget approved by County Council is presented in the following section of the report. In accordance with the Municipal Act, the County approves a balanced budget on an annual basis which includes both an operating and a capital budget. The budget provides for the costs of all programmes provided by the County, any debt payments required during the year (including principal repayments), capital project expenses to be financed through the current year s levy, contributions to reserve funds to finance future infrastructure replacements, and may include contingencies and provisions for tax rate stabilization. The County continues to budget using the modified accrual basis of accounting because it provides the best measure of determining the annual tax levy requirement and meaningful and understandable budget to actual results throughout the year. Through its Budget Variance Reporting Policy, the County provides monthly financial statements to Council and variance reports throughout the year to establish controls and monitor results. The annual financial statements provide information about the broad fiscal situation of the County over time. The annual surplus in these statements represents the amount of municipal funding available for capital formation and debt repayment after interest costs and amortization. This is different than the annual surplus reported on a modified accrual basis which measures how tax dollars were collected and spent for their intended purpose over the year. Annual financial statements are presented by the mandated programme categories as indicated in the chart below. Expense by Function General Government Protection to Persons and Property Transportation Services Environmental Services Health Services Social Housing Social and Family Services Library and Museum Planning and Development Description of Department or Programme Property Assessment (MPAC), Council, CAO/Clerks, Treasury, Human Resources, Economic Development, Property, and Community Grants. Police Services, Emergency Management, and Provincial Offences Act Administration. Roads Department including roads maintenance activities and winter control. Solid Waste Services, consisting of garbage collection, recycling, operation of transfer stations and landfills. Land Ambulance Services and Public Health. Housing Services Department, including the operation of Social and Affordable Housing units. Social Services such as Child Care Services and Ontario Works, as well as the Wellington Terrace, the County s long term care home. The County s 14 library branches and the Wellington County Museum and Archives. Planning Services as well as the Green Legacy tree planting programme. 24

25 Annual Budget Reconciliation Wellington County Council approves the operating and capital budgets each year on a modified-accrual basis of accounting (sometimes referred to as cash basis). Since the audited financial statements are prepared on a full accrual basis, a reconciliation must be performed in order to present the annual budget. A summary of the reconciliation for 2013 is as follows: STATEMENT OF OPERATIONS Sources of Revenue 2013 Approved Operating Budget Adjustments* 2013 Full Accrual Budget 2013 Actual Taxation 79,413,200 (1,000,300) 78,412,900 79,285,560 Government Transfers Provincial 43,421,000 5,115,500 48,536,500 50,518,274 Federal 6,395, ,100 7,221,200 5,217,887 Municipal 23,537, ,700 24,029,600 24,596,190 Fees and Service Charges 8,848,200 57,600 8,905,800 7,691,941 Licenses, Permits, Rent 6,713,300 6,713,300 6,955,891 Interest, Donations, Other 2,736,000 1,600 2,737,600 3,009,273 Internal Recoveries 5,256,500 (5,256,500) Development Charges Earned 131, ,600 1,112,949 Expenses by Function 176,321, , ,688, ,387,965 General Government 21,525,200 (7,692,200) 13,833,000 12,852,998 Protection to Persons and Property 19,701,300 (1,570,600) 18,130,700 17,647,545 Transportation Services 21,726,300 6,828,200 28,554,500 27,257,804 Environmental Services 9,552,900 (1,472,900) 8,080,000 7,481,141 Health Services 5,677,800 5,090,800 10,768,600 9,872,636 Social Housing 31,221,100 (635,800) 30,585,300 28,538,100 Social and Family Services 55,983,400 (3,265,800) 52,717,600 54,535,798 Library and Museum 7,260, ,900 7,602,800 7,511,228 Planning and Development 3,672,300 (716,600) 2,955,700 2,722, ,321,200 (3,093,000) 173,228, ,419,599 Annual Surplus (Deficit) 3,460,300 9,968,366 *Adjustments are required to convert the budget from a modified-accrual (cash) basis to a full accrual basis. These adjustments include the removal of all transfers to and from reserves and reserve funds and capital fund from revenue and expenses, removal of debt principal payments from expenses, and the addition of non-cash accounting revenues and expenses such as a revenue from a reduction in post-closure landfill liability and expenses for asset amortization. 25

26 Financial Statements For the Year Ended December 31,

27 Consolidated Financial Statements Independent Auditor s Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the County of Wellington: We have audited the accompanying consolidated financial statements of the Corporation of the County of Wellington, which comprise the consolidated statement of financial position as at December 31, 2013, the consolidated statements of operations, changes 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. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation of the County of Wellington as at December 31, 2013, and its consolidated results of operations, and its consolidated changes in 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 May 29, 2014 Waterloo, Canada 27

28 Consolidated Financial Statements Consolidated Statement of Financial Position County of Wellington Consolidated Statement of Financial Position As at December Assets Financial Assets $ $ Cash and Short Term Investments (Note 3) 28,738,282 25,599,673 Accounts Receivable 6,575,197 4,774,608 Long Term Investments (Note 3) 71,945,848 66,579,787 Loans Receivable (Note 4) 481, ,756 Total Financial Assets 107,740,395 97,437,824 Liabilities Accounts Payable and Accrued Liabilities 20,552,202 17,288,806 Deferred Revenue (Note 5) 8,676,019 5,950,087 Landfill Site Closure and Post Closure Liability (Note 6) 7,997,026 8,666,918 Post Employment/Retirement Liability (Note 7) 2,501,460 2,386,527 WSIB Liability (Note 8) 1,435,121 1,424,122 Net Long Term Liabilities (Note 9) 37,620,894 31,936,324 Total Liabilities 78,782,722 67,652,784 Net Financial Assets 28,957,673 29,785,040 Non Financial Assets Tangible Capital Assets (Note 10) 372,855, ,793,772 Inventories of Supplies 505, ,989 Prepaid Expenses 1,985,197 1,115,362 Total Non Financial Assets 375,345, ,550,123 Accumulated Surplus (Note 11) 404,303, ,335,163 The accompanying notes are an integral part of these financial statements. 28

29 Consolidated Financial Statements Consolidated Statement of Operations County of Wellington Consolidated Statement of Operations For the year ended December 31 Budget Revenues $ $ $ Taxation 78,412,900 79,285,560 74,979,107 Government Transfers Provincial 48,536,500 50,518,274 48,938,858 Federal 7,221,200 5,217,887 8,210,928 Municipal 24,029,600 24,596,190 23,199,960 Fees and Services Charges 8,893,200 7,691,941 6,768,455 Licenses, Permits, Rent 6,713,300 6,955,891 6,714,216 Interest, Donations, Other 2,750,200 3,009,273 3,176,494 Development Charges Earned 131,600 1,112, ,006 Total Revenues 176,688, ,387, ,730,024 Expenses General Government 13,833,000 12,852,998 12,368,901 Protection to Persons and Property 18,130,700 17,647,545 17,660,996 Transportation Services 28,554,500 27,257,804 22,784,377 Environmental Services 8,080,000 7,481,141 8,767,472 Health Services 10,768,600 9,872,636 9,255,992 Social Housing 30,585,300 28,538,100 25,925,890 Social and Family Services 52,717,600 54,535,798 53,891,547 Library 5,724,300 5,682,218 5,561,565 Museum 1,878,500 1,829,010 1,689,758 Planning and Development 2,955,700 2,722,349 2,863,549 Total Expenses 173,228, ,419, ,770,047 Annual Surplus 3,460,300 9,968,366 11,959,977 Accumulated Surplus, Beginning of Year 394,335, ,335, ,375,186 Accumulated Surplus, End of Year 397,795, ,303, ,335,163 The accompanying notes are an integral part of these financial statements. 29

30 Consolidated Financial Statements Consolidated Statement of Change in Net Financial Assets County of Wellington Consolidated Statement of Change in Net Financial Assets For the year ended December $ $ Annual Surplus 9,968,366 11,959,977 Acquisition of Tangible Capital Assets (30,403,091) (23,589,942) Amortization of Tangible Capital Assets 18,765,785 16,273,638 Loss on Disposal of Tangible Capital Assets 1,254,206 2,032,016 Proceeds on Sale of Tangible Capital Assets 321, ,679 (93,133) 7,121,368 Acquisition of Inventories of Supplies (505,388) (640,989) Acquisition of Prepaid Expenses (1,985,197) (1,115,362) Consumption of Inventories of Supplies 640, ,554 Use of Prepaid Expenses 1,115,362 1,627,989 Change in Net Financial Assets (827,367) 7,604,560 Net Financial Assets, Beginning of Year 29,785,040 22,180,480 Net Financial Assets, End of Year 28,957,673 29,785,040 The accompanying notes are an integral part of these financial statements. 30

31 Consolidated Financial Statements Consolidated Statement of Cash Flows County of Wellington Consolidated Statement of Cash Flows For the year ended December Cash Provided By (Used In): $ $ Operating Activities: Annual Surplus 9,968,366 11,959,977 Items Not Involving Cash: Amortization 18,765,785 16,273,638 Loss on Disposal of Tangible Capital Assets 1,254,205 2,032,016 Contributed Tangible Capital Assets - - Change in Post Employment/Retirement Liability 114, ,728 Change in WSIB Liability 10,999 7,851 Change in Landfill Liability (669,892) 371,589 Change in Non-Cash Assets and Liabilities: Accounts Receivable (1,800,589) 3,310,243 Accounts Payable and Accrued Liabilities 3,263,396 (506,759) Deferred Revenue 2,725,932 (1,103,495) Inventories of Supplies 135,601 (29,435) Prepaid Expenses (869,835) 512,627 Net Change in Cash from Operating Activities 32,898,901 33,014,980 Capital Activities: Proceeds on Sale of Tangible Capital Assets 321, ,679 Cash Used to Acquire Tangible Capital Assets (30,403,090) (23,589,942) Net Change in Cash from Capital Activities (30,081,489) (23,144,263) Investing Activities: Change in Loan Receivable 2,688 1,559,712 Change in Long Term Investments (5,366,061) (8,101,490) Net Change in Cash from Investing Activities (5,363,373) (6,541,778) Financing Activities: Long Term Debt Issued 8,200,000 3,700,000 Long Term Debt Repaid (2,515,430) (2,418,562) Net Change in Cash from Financing Activities 5,684,570 1,281,438 Net Change in Cash and Short Term Investments 3,138,609 4,610,377 Cash and Short Term Investments, Beginning of Year 25,599,673 20,989,296 Cash and Short Term Investments, End of Year 28,738,282 25,599,673 The accompanying notes are an integral part of these financial statements. 31

32 Notes to the Financial Statements The County of Wellington (the County) is an upper-tier municipality in the Province of Ontario, Canada. The County is comprised of seven member municipalities: the Towns of Erin and Minto, and the Townships of Centre Wellington, Guelph/Eramosa, Mapleton, Puslinch and Wellington North. 1. ACCOUNTING POLICIES The consolidated financial statements of the County of Wellington are prepared by management in accordance with Canadian generally accepted accounting principles for governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. Significant accounting policies adopted by the County are as follows: a) Basis of Consolidation (i) Consolidated Entities These consolidated statements include the activities of all committees of Council and the following boards, municipal enterprises and utilities which are under the control of Council: Wellington County Police Services Board Wellington County Public Library Board All interfund assets and liabilities and sources of financing and expenditures have been eliminated with the exception of loans or advances between reserve funds and any other fund of the municipality and the resulting interest income and expenditures. Under PSAB standards, the County reports only its share of assets, liabilities and results of operations of any government partnerships in which it participates. The County participates in the Wellington- Dufferin-Guelph Health Unit to the extent of 32.7% ( %) based on population, as stated in the agreement with the other participants, the City of Guelph and the County of Dufferin. (ii) Trust Funds Trust funds and their related operations administered by the County are not consolidated, but are reported separately on the Trust Funds Statements of Financial Position and Operations. b) Basis of Accounting (i) Accrual Basis of Accounting The County follows the accrual method of accounting for revenues and expenses. Revenues are normally recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and/or the creation of a legal obligation to pay. (ii) Investments Investments consist of bonds and debentures and are recorded at amortized cost. Discounts and premiums arising on the purchase of these investments are amortized over the term of the investments. When there has been a loss in value that is other than a temporary decline in value, the respective investment is written down to recognize the loss. 32

33 Notes to the Financial Statements (iii) Deferred Revenue In accordance with PSAB requirements obligatory reserve funds are reported as a component of deferred revenue. The County has obligatory development charge reserve funds in the amount of $3,610,181 ( $3,071,351). These funds have been set aside, as required by the Development Charges Act, to finance a portion of the cost of growth-related capital projects. Revenue recognition occurs after the funds have been collected and when the County has incurred the expenditures for the capital works for which the development charges were raised. Unexpended funds of $4,102,460 ( $2,391,529) received by the County under the Federal Gas Tax Revenue Transfer are reported as deferred revenue and will be recognized as revenue in the fiscal year in which the eligible expenditures are incurred. (iv) Government Transfers Government transfers received relate to social services, police, health and cultural programmes. Transfers are recognized in the financial statements as revenues in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made. (v) Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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, landfill closure and post-closure liability, actuarial valuations of employee future benefits, and the historical cost and useful lives of tangible capital assets. Actual results could differ from these estimates. c) Physical Assets (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, is amortized on a straight line basis over their estimated useful lives as follows: 33

34 Notes to the Financial Statements Major Asset Classification Component Breakdown Useful Life Years Land Landfill Sites N/A N/A Based on Usage Buildings Infrastructure Vehicles and Machinery Structure Exterior Interior Site Elements Leasehold Improvements Roads and Parking Lots Asphalt Roads and Parking Lots Gravel Roads Base Bridges Surface Bridges and Culverts Structure Traffic Signals. Street Signs, Outdoor Lighting Licensed Equipment Unlicensed Equipment 15 to to to to 30 Lease Term Furniture and Fixtures 15 Technology and Communications 5 Library Books and Media Landfill sites are amortized using the units of production method based upon capacity used during the year. Assets under construction are not amortized until the asset is available for productive use. The County completed a review of social housing building assets in 2013 and determined that in order to properly manage these assets it was necessary to recognize that components of the building have significantly different useful lives. The change in estimate of useful life from accounting for social housing buildings as a whole with a useful life of 40 years to accounting for these assets on a component basis with varied useful lives has resulted in an increase to amortization expense for the year ended December 31, 2013 of $1,418,611. (ii) Contributions of Tangible Capital Assets Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and are also recorded as revenue. (iii) 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. The County s art collection includes approximately 1,000 pieces along with approximately 100,000 artifacts and archival documents which are considered to be historical treasures. All artwork, artifacts, and archival documents are fully catalogued (along with appraised values) in the County s collections database. The collection is maintained and stored at the Wellington County Museum and Archives. (iv) Interest Capitalization Borrowing costs incurred as a result of the acquisition, construction and production of an asset that takes a substantial period of time to prepare for its intended use are capitalized as part of the cost of the asset. Capitalization of interest costs commences when the expenses are being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended 34

35 Notes to the Financial Statements use are in progress. Capitalization is suspended during periods in which active development is interrupted. Capitalization ceases when substantially all of the activities necessary to prepare the asset for it intended use are complete. If only minor modifications are outstanding, this indicates that substantially all of the activities are complete. The capitalized interest costs associated with the acquisition or construction of tangible capital assets during the year was $nil ( $nil). (v) Leased Tangible Capital Assets Leases which transfer substantially all of the benefits and risks incidental to ownership of property are accounted for as leased tangible capital assets. All other leases are accounted for as operating leases and the related payments are expensed as incurred. (vi) Inventories of Supplies 2. TRUST FUNDS Inventories of supplies held for consumption are recorded at the lower of cost and replacement cost. Trust funds administered by the County amounting to $73,780 (2012 $52,114) have not been included in the Consolidated Statement of Financial Position, nor have their operations been included in the Consolidated Statement of Financial Activities. 3. CASH AND INVESTMENTS Total cash and short term investments of $28,738,282 (2012 $25,599,673) are reported on the Consolidated Statement of Financial Position at cost and have a market value of $28,738,654 (2012 $25,599,055) at the end of the year. Total long term investments of $71,945,848 (2012 $66,579,787) are reported on the Consolidated Statement of Financial Position at cost and have a market value of $73,624,922 (2012 $70,631,037). At December 31, 2013 the County had undrawn credit capacity under a credit facility of $3,000,000. Interest on the credit facility is at prime less 0.75%. 4. LOANS RECEIVABLE (i) Service Financing and Cost Sharing Agreements with the Township of Centre Wellington In 2003 the County entered into a service financing agreement with the Township of Centre Wellington. The agreement provides for the extension of water and sanitary sewer services to County-owned lands at Wellington Place in Aboyne. The County financed the initial cost of the services, and the Township is repaying the County for 87.5% of the cost of water services and 95.0% the cost of sanitary sewer services over a 10 year period commencing in In 2010 the County entered into a cost sharing agreement with the Township of Centre Wellington and Groves Memorial Hospital to fund three phases of a Community Planning Area Subwatershed Study. The County funds the work upfront and is repaid by the Township at 54% and the Hospital at 6%. In 2011 phase 1 was completed and in 2012 phase 2 was completed. The Township will repay the County over 10 years from year of completion and the Hospital will repay the County through the Township at the time of building permit issuance. The amount to be repaid to the County as at December 31, 2013 was $376,353 (2012 $483,756) and is reflected on the Consolidated Statement of Financial Position as a Loan Receivable. In 2013, the County and Centre Wellington agreed in principle to share soil remediation costs for the Fergus Library Expansion Project. The land, originally owned by Centre Wellington, will be remediated by the County upfront and repaid by the Township at 60%. Details of the repayment schedule are currently under negotiation. The amount to be repaid to the County as at December 31, 2013 was $104,715 ( $0). 35

36 Notes to the Financial Statements 5. DEFERRED REVENUE Deferred revenue, which is reported on the Consolidated Statement of Financial Position, is further analyzed as follows: Federal Gas Tax 4,102,460 2,391,529 Development Charges 3,610,181 3,071,351 Deferred Capital Grants - 29,038 Deferred Operating Grants 236, ,686 Other 700, ,483 Balance, Beginning of Year 8,676,019 5,950,087 Federal Gas Tax 2,391,529 4,047,465 Development Charges 3,071,351 2,568,783 Deferred Capital Grants 29,038 68,000 Deferred Operating Grants 314, ,985 Other 143,483 76,508 Amounts Received 5,950,087 7,054,741 Federal Gas Tax 2,622,160 2,622,160 Development Charges 1,530,462 1,139,482 Deferred Capital Grants - - Deferred Operating Grants 397, ,903 Other 954, ,459 Interest Earned 218, ,553 5,722,699 4,726,557 Contributions Used (2,996,767) (5,831,221) Balance, End of Year 8,676,019 5,950, LANDFILL SITE CLOSURE AND POST-CLOSURE LIABILITY The County is responsible for all aspects of solid waste management. As of December 31, 2013 there were 16 closed landfill sites (of which 5 locations were operating as transfer stations) and 1 active landfill site. The total estimated expenditure (on a discounted basis) for closure and post-closure care as of December 31, 2013 is $8,729,716 (2012- $9,568,023). The amount reported on the Consolidated Statement of Financial Position as of December 31, 2013 is $7,997,026 ( $8,666,918) and the amount remaining to be recognized is $732,690 ( $901,105). Closure costs include final cover and vegetation, drainage control features, leachate control and monitoring systems, water quality monitoring systems, gas monitoring and recovery, land acquisition, site remediation, and site closure reports. Post-closure costs include leachate monitoring and treatment, water quality monitoring, gas monitoring and recovery, ongoing maintenance and annual reports. The discounted cash flow analysis is based on the estimated costs for each of these items over a 25 year period using the County's estimated long term borrowing rate as of December 31,

37 Notes to the Financial Statements The liability for closure and post closure care is recognized as the capacity of each site is used. For any closed sites, 100% of the liability is recognized. A total of 91.60% ( %) of the liability is recognized and reported, which represents the estimated weighted average capacity used to December 31, It is estimated that sufficient landfill site capacity exists for approximately 32 years. Of the $7,997,026 ( $8,666,918) recognized as a liability, $3,256,528 ( $4,122,593) is included on the Consolidated Statement of Financial Position as a reduction to accumulated surplus and will be recovered from future general municipal revenues and $4,740,498 ( $4,544,325) is shown as an amount to be recovered from reserve funds (see note 11). 7. POST EMPLOYMENT / RETIREMENT LIABILITY Post employment benefits include a provision to pay 90% of the premium cost for retired non-union full-time employees, 100% of the premium cost for retired union full-time employees and 50% of the premium cost for retired permanent part time employees for dental, extended health care and life insurance benefits for an employee voluntarily electing early retirement until the retired employee s 65 th birthday. To be eligible to receive these benefits, the employee must be at least 55 years of age, have a minimum of ten years of continuous service with the County at the time of retirement and be in receipt of an OMERS pension. Post employment benefits include a sick leave accumulation plan for full time unionized employees. This plan allows for the vesting of sick leave credits after ten years of service, with a maximum accumulation of 1.5 days per month of completed service. Fifty percent of the accumulated credits are paid out upon termination, retirement, early retirement or death of the employee. Payouts are limited to a maximum of fifty percent of the employee s current salary. The present value of these benefit obligations at December 31, 2013 was estimated from an actuarial review completed in December The review calculated the benefit obligations using an accrued benefit obligation methodology, which recognizes the accrued benefit over the employees working lifetime. Of the $2,493,743 ( $2,372,756) recognized as a liability $1,720,347 ( $1,687,489) is included on the Consolidated Statement of Financial Position as a reduction to accumulated surplus and will be recovered from future general municipal revenues and $773,397 ( $685,267) is an amount to be recovered from reserve funds (see note 11). Benefit Number of Employees Entitled to Benefit as at December 31, 2013 Liability as at December 31, 2013 Liability as at December 31, 2012 Sick Leave , ,267 Dental , ,178 Extended Health Care 45 1,207,848 1,178,765 Life Insurance , ,546 County of Wellington Total 2,493,743 2,372,756 Wellington-Dufferin Guelph Public Health Unit 7,717 13,771 Consolidated Total 2,501,460 2,386,527 37

38 Notes to the Financial Statements Information about the County s benefit plan is as follows: Accrued Benefit Obligation: Balance, Beginning of Year 3,256,513 2,643,977 Current Benefit Cost 178, ,609 Interest 128, ,659 Benefits Paid (258,911) (160,203) Actuarial Loss - 461,471 Balance, End of Year 3,304,298 3,256,513 Unamortized Actuarial Loss (810,555) (883,757) Liability for Benefits 2,493,743 2,372,756 Wellington-Dufferin Guelph Public Health Unit 7,717 13,771 Consolidated Total 2,501,460 2,386,527 Included in expenses is $73,202 ( $40,240) for amortization of the actuarial loss. The unamortized actuarial loss is amortized over the expected average remaining service life as listed below: Accumulated Sick Leave Benefit Plan Entitlements Retiree Benefits 14 years 14 years The main actuarial assumptions employed for the valuation are as follows: Interest (discount rate): 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%. Medical costs: Medical costs were assumed to increase at the rate of 5.67% per year reducing over 6 years to 4% in Dental costs: Dental costs were assumed to increase at the rate of 4.0% per year. 8. WORKPLACE SAFETY AND INSURANCE The County is a Schedule II (self-insured) employer with the Workplace Safety and Insurance Board (WSIB). Payments made to the WSIB in 2013 resulting from approved claims were $117,161 ( $163,002) and are reported as a liability transaction on the Consolidated Statement of Financial Position. There were no major unsettled claims as at December 31, The WSIB liability has been established based on an actuarial evaluation completed in December The evaluation is updated every four years. As WSIB benefits are a compensated absence, PSAB Section PS 3250 requires full recognition of liabilities associated with workplace injuries that occurred on or before the valuation date. The amount reported on the Consolidated Statement of Financial Position as a liability is $1,435,121 ( $1,424,122). 38

39 Notes to the Financial Statements Information about the WSIB liability is as follows: Accrued Benefit Obligation: Balance, Beginning of Year 1,133,048 1,087,042 Current Benefit Cost 188, ,963 Interest 45,397 43,531 Expected Benefit Payments (184,437) (179,488) Expected Accrued Benefit Obligation, End of Year 1,182,202 1,133,048 Actual Accrued Benefit Obligation, End of Year 1,182,202 1,133,048 Unamortized Actuarial Gain 252, ,074 WSIB Liability 1,435,121 1,424,122 Included in expenses is $38,155 ( $38,155) for amortization of the actuarial gain. The unamortized actuarial gain on future payments required to WSIB is amortized over the expected period of the liability which is 10 years. The main actuarial assumptions employed for the valuation are as follows: Interest (discount rate): 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%. Administration costs: Administration costs were assumed to be 30.0% of the compensation expense Compensation expense: Compensation costs, which include loss of earnings benefits, health care costs and non-economic loss awards, were assumed to increase at rates ranging from 1.5% to 6.0% depending on the benefit type. The County purchases two forms of insurance to limit exposure in the event of a significant work-related accident resulting in a death or permanent disability. Occupational Accident Insurance coverage provides a one-time fixed payment of $500,000 per incident. Excess indemnity insurance is in place to a maximum of $10,000,000 with a $500,000 retention. 9. NET LONG-TERM LIABILITIES Provincial legislation restricts the use of long-term liabilities to financing capital expenditures, and also authorizes the County to issue long-term debt for both County and Local purposes, with the latter at the request of the Local Municipality. The responsibility for raising the amounts required to service these liabilities rests with the County and such Local Municipalities for which the debt was issued. Long-term liabilities outstanding for County purposes ( $37,620,894, $31,936,324) are direct, unsecured and unsubordinated obligations of the County. Long-term liabilities outstanding for Local Municipal purposes ( $29,178,956, $31,666,636) are direct, unsecured, unsubordinated, joint and several obligations of the County and such Local Municipalities. (a) The outstanding principal portion of unmatured long term liabilities for municipal expenditures is reported on the Consolidated Statement of Financial Position, under "Net Long Term Liabilities". Net long-term liabilities reported on the Consolidated Statement of Financial Position are comprised of the following: 39

40 Notes to the Financial Statements Long-term liabilities incurred by the County, including those incurred on behalf of member municipalities, and outstanding at the end of the year 66,799,850 63,602,960 Long-term liabilities incurred by the County and recoverable from member municipalities (29,178,956) (31,666,636) Net long-term liabilities at the end of the year 37,620,894 31,936,324 (b) Future principal payments for net long term liabilities are as follows: (c) The long-term liabilities in (a) of this note issued in the name of the County, as well as those pending issues of longterm liabilities and commitments to be financed by revenues beyond the term of Council, 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 the year for net long term liabilities are as follows: (e) The charges shown on the previous table are recovered as follows: Principal ,087, ,216, ,071, ,081, ,208,936 Subsequent to ,954,682 37,620, Principal Payments 2,515,430 2,418,562 Interest 1,667,188 1,641,736 4,182,618 4,060, General Municipal Revenues 3,734,279 3,717,710 Development Charges 448, ,588 4,182,618 4,060,298 (f) Net long-term liabilities are to be recovered are as follows: Net Long-term Liabilities Recovered from General Municipal Revenues 33,435,894 28,147,324 Recovered from Development Charges 4,185,000 3,789,000 37,620,894 31,936,324 40

41 Notes to the Financial Statements 10. TANGIBLE CAPITAL ASSETS County tangible capital assets are identified by asset type. The cost of tangible capital assets, their accumulated amortization and net book value are disclosed in the following schedule: Cost Balance at December 31, 2012 Adjustment Additions Disposals Balance at December 31, 2013 Land $ 31,150,126 $ 94,821 $ 31,244, 947 Landfill Sites 1,871,638 1,871,638 Buildings 122,763,583 (448,687) 3,621,728 (191,516) 125,718,108 Infrastructure Roads 293,479,303 (161,359) 6,075,688 (2,335,372) 297,058,260 Bridges 70,115,990 3,512,625 (986,315) 72,642,300 Culverts 13,427,921 2,636,129 (104,766) 15,959,284 Traffic Lights 2,162, ,430 2,315,958 Parking Lots 125, ,687 68, ,787 Vehicles and Machinery Licensed Equipment 8,429,417 1,791,349 (908,739) 9,312,027 Unlicensed Equipment 6,794, ,958 (1,256,187) 6,112,543 Furniture and Fixtures 5,955, ,592 (4,234) 6,433,954 Technology and Communications 3,602, ,016 (185,000) 4,356,545 Library Books and Media 3,256, ,819 (778,803) 3,012,176 Public Health 2,535,247 (60,543) 4,353,669 6,828,373 Capital Work-in-Progress 6,182,449 10,080,742 (4,322,168) 11,941,023 Total $ 571,825,482 $ (68,472) $ 34,766,013 $(11,073,100) $ 595,449,923 Accumulated Amortization Balance at December 31, 2012 Adjustment Disposals Amortization Expense Balance at December 31, 2013 Land $ - $ - Landfill Sites (726,010) $(50,778) (776,788) Buildings (21,717,754) 96,320 56,281 (4,568,666) (26,133,819) Infrastructure Roads (127,963,894) 7,929 1,732,201 (8,562,309) (134,786,073) Bridges (37,990,513) 964,731 (1,642,216) (38,667,998) Culverts (7,101,202) 101,609 (416,342) (7,415,935) Traffic Lights (1,368,287) (159,815) (1,528,102) Parking Lots (2,083) (96,320) (43,730) (142,133) Vehicles and Machinery Licensed Equipment (3,707,265) 732,985 (987,253) (3,961,533) Unlicensed Equipment (2,049,892) 619,282 (417,107) (1,847,717) Furniture and Fixtures (2,756,993) 4,234 (330,269) (3,083,028) Technology and Communications (1,159,983) 185,000 (631,020) (1,606,003) Library Books and Media (1,659,188) 778,803 (627,273) (1,507,658) Public Health (828,646) 19,788 (329,007) (1,137,865) Total $ (209,031,710) $ 27,717 $5,175,126 $(18,765,785) $ (222,594,652) 41

42 Notes to the Financial Statements Net Book Value December 31, 2012 December 31,2013 Land $ 31,150,126 $ 31,244,947 Landfill Sites 1,145,628 1,094,850 Buildings 101,018,829 99,584,289 Infrastructure Roads 165,515, ,272,187 Bridges 32,125,477 33,974,302 Culverts 6,326,719 8,543,349 Traffic Lights 794, ,856 Parking Lots 123, ,654 Vehicles and Machinery Licensed Equipment 4,722,152 5,350,494 Unlicensed Equipment 4,744,880 4,264,826 Furniture and Fixtures 3,198,603 3,350,926 Technology and Communications 2,442,546 2,750,542 Library Books and Media 1,596,972 1,504,518 Public Health 1,706,601 5,690,508 Capital Work-in-Progress 6,182,449 11,941,023 Total $ 362,793,772 $ 372,855,271 (a) Assets Under Construction Assets under construction having a value of $11,941,023 ( $6,182,449) have not been amortized. Amortization of these assets will commence when the asset is put into service. (b) Write-Down of Tangible Capital Assets The write-down of tangible capital assets during the year was $nil (2012- $nil). (c) Adjustments The adjustment related to the Wellington-Dufferin-Guelph Health Unit tangible capital assets is due to a reduction in the share of assets the County reports based on updated 2011 Census information of 32.7% ( %). The other adjustments relate to reclassification of assets as a result of updated information provided by asset management plan work during

43 Notes to the Financial Statements 11. ACCUMULATED SURPLUS Accumulated surplus shown on the Consolidated Statement of Financial Position is analyzed as follows: As at December $ $ Surplus: Invested in Tangible Capital Assets 372,855, ,793,772 Invested in Capital Fund 11,163,209 9,241,388 Share of Public Health Unit 3,212,196 1,000,732 Amounts to be Recovered From Future Revenues Net Long Term Liabilities (37,620,894) (31,936,324) Landfill Liability (3,256,528) (4,122,593) Post Employment Benefits (1,720,347) (1,687,489) From Reserve Funds Landfill Liability (4,740,498) (4,544,325) Post Employment Benefits (773,397) (685,267) WSIB (1,435,121) (1,424,122) Total Surplus 337,683, ,635,772 Reserves set aside by Council for: Capital 23,501,033 25,097,677 Contingencies and Stabilization 15,579,449 12,834,910 Equipment Replacement 4,609,929 4,705,236 Hospital Redevelopment 3,890,877 3,940,100 Benefit and Insurance 3,205,625 3,131,072 Programme Specific 1,923,940 2,718,468 Total Reserves 52,710,853 52,427,463 Reserve Funds set aside for specific purposes by Council for: Landfill Closure and Post Closure 4,740,498 4,544,474 Workplace Safety and Insurance 3,348,711 3,452,902 Best Start Programme 2,592,832 2,607,396 Housing Development 1,978,310 1,441,807 Federal Housing Projects 924, ,630 Museum Donations and Endowments 278, ,412 Wellington Terrace Donations 45,799 63,307 Total Reserve Funds 13,908,785 13,271,928 Accumulated Surplus $ 404,303,529 $ 394,335,163 43

44 Notes to the Financial Statements 12. CONTINGENT LIABILITIES AND COMMITMENTS In the normal course of its operations, the County is subject to various litigations and claims. The ultimate outcome of these claims cannot be determined at this time. The County has approved a grant of 20% of eligible costs to a maximum of $5.0 million for the redevelopment of Groves Memorial Community Hospital (GMCH) in the Township of Centre Wellington. As of December 31, 2013 the sum of $1,109,123 ( $1,059,943) has been paid to GMCH, leaving an outstanding commitment of $3,890,877 ( $3,940,057). 13. GOVERNMENT PARTNERSHIP The County of Wellington is a partner in the Wellington-Dufferin-Guelph Health Unit. The County provides 32.7% ( %) of the municipal funding to the Health Unit, and is responsible for a similar share of the assets, liabilities and municipal position of the Health Unit. The County's share of the results of the Health Unit's financial activities for the year and its financial position at year end -have been consolidated in these financial statements. At December 31, 2013, the Health Unit's financial results and financial position are as follows: Financial Assets 15,455,984 6,160,214 Liabilities (21,771,994) (3,468,048) Non-Financial Assets 17,703,460 5,389,426 Accumulated Surplus 11,387,450 8,081,592 Revenues 23,074,161 22,327,116 Expenses 19,768,303 18,695,514 Annual Surplus 3,305,858 3,631,602 On December 19, 2012, The County entered into a Financing Agreement with the Wellington-Dufferin-Guelph Public Health Unit, the County of Dufferin and the City of Guelph, to finance the County portion of the cost of building the two new facilities at Chancellors Way, Guelph, and Broadway, Orangeville. The Financing Agreement allows for quarterly advances of capital by the County of Wellington to Public Health beginning in January 2013, until the completion of the new facilities. The total amount of the advances from all obligated municipalities will not exceed $24,400,000 and based on 2011 Census population information, the County of Wellington s obligation is 32.7% or $8,000,000. The interest rate on the loan repayment from the Health Unit to the County will be 3.34% per annum, and the term and amortization of the loan will be twenty years. Repayment will commence thirty days following certification by the project s architect of substantial completion of both facilities. The whole or any part of the capital financing under this agreement may be prepaid at any time without penalty or bonus. The County has included a capital project with debt funding of $7,700,000 in its approved 2013 capital budget. At December 31, 2013 the County has advanced $5,179,009 to the Wellington-Dufferin-Guelph Health Unit. 14. PUBLIC LIABILITY INSURANCE The County has a comprehensive programme of risk identification, evaluation and control to minimize the risk of injury to its employees and third parties and to minimize the risk of damage to its property and the property of others. The County s purchased general liability insurance policy is $25,000,000 per occurrence with no aggregate. The environmental liability policy is the maximum that can be purchased at $3,000,000 per occurrence with an aggregate of $5,000,000. The County s licensed fleet is insured with liability coverage of $25,000,000. The deductible (self insurance) is $10,000 on fleet policies and $50,000 on property and liability. The County also carries a legal expense reimbursement policy that covers 100% of legal fees to a maximum of $100,000 per claim with an annual aggregate of $250,

45 Notes to the Financial Statements Based on claims received to December 31, 2013, the maximum deductible exposure to the County is estimated at $362,895. These claims have not been accrued in the Financial Statements because the outcome of these claims is not known and the loss will be accounted for in the period in which the loss, if any, becomes known with certainty. For claims not covered by purchased insurance, the County has established a reserve, which as at December 31, 2013 totaled $305,195 ( $313,872). 15. CHILD CARE SERVICES CONTRACT WITH THE MINISTRY OF EDUCATION The County of Wellington has a child care services contract with the Ministry of Education. A requirement of the service contract is the production of supplementary information by detail code (funding type) which summarizes all revenues and expenditures relating to the service contracts. Ministry reporting is based on modified accrual accounting which forms the basis of funding and is also guided by the following ministry policies and programme guidelines: Admissible / inadmissible expenditures (2013/14) Retainable and Non-Retainable Revenue (2013/14) This method of accounting requires the inclusion of short term accruals of revenue and normal operating expenditures in the determination of operating results for a given time period. Short-term accruals are defined as payable or receivable usually within 30 days of the budget year-end. The modified accrual basis of accounting, as defined by the ministry, does not recognize non-cash transactions such as amortization, charges/appropriations to reserves or allowances as these expenses do not represent an actual cash expenditure related to the current period. 45

46 Notes to the Financial Statements A review of these revenues and expenditures, by detail code, are outlined below. Full Flexibility Ministry of Education (Most recent Amended Service agreement) REVENUES Legislated Cost Share Total (Calculated) (Calculated) 1.1 Core Services Delivery (100% provincial) 1,898,334 0% 0 1,898, Core Services Delivery Cost Shared Requirement 80/20 5,852,516 20% 1,463,129 7,315, Core Service Delivery Cost Shared Requirement 50/50 Administration 224,615 50% 224, , Language 253,967 0% 0 253, Aboriginal 24,705 0% 0 24, Cost of Living 347,580 0% 0 347, Rural/Remote 225,489 0% 0 225, FDK Transition 660,637 0% 0 660, Repairs and Maintenance 38,209 0% 0 38, Utilization Adjustment 321,882 0% 0 321, Capping Adjustment 0 0% 0 0 Total (full flexibility) 9,847,934 1,687,744 11,535, Transformation 130,079 0% 0 130,079 Limited Flexibility 2.7 Capacity Building 86,058 0% 0 86, Capital Retrofits 152,836 0% 0 152, Small Water Works 9,748 0% 0 9,748 Total (limited flexibility) 248, ,642 No Flexibility 2.9 Territory Without Municipal Organization 0% 0 0 TOTAL 10,226,655 1,687,744 11,914,399 46

47 Notes to the Financial Statements EXPENDITURES BY AUSPICE Non-Profit Profit Gross Offsetting Adjusted Gross Offsetting Adjusted Expenditures Revenues (Parent Gross Expenditures Revenues (Parent Gross contribution/ Expenditures contribution/ Expenditures other offsetting) other offsetting) Sch 2.3, Sch 2.3, Calculated Sch 2.3, Sch 2.3, Calculated Col. 1 Col (Sch 2.3, Col. 5 Col (Sch 2.3, Col. 4) Col. 8) Full Flexibility 1.1 General Operating 2,011,514 2,011, , , Regular Fee Subsidy 1,813,839 (260,335) 1,553,504 1,265,684 (159,480) 1,106, Extended Day Fee Subsidy 42,139 (6,260) 35,879 3,318 (493) 2, Recreation Fee Subsidy 198,094 (19,868) 178, Ontario Works Formal 89,960 89, , , Ontario Works Informal Pay Equity Memorandum 105, , Special Needs Resourcing 2,020,495 2,020, Administration Repairs and Maintenance 52,137 53,137 3,400 3, Play-based Material 47,046 47,046 7,961 7, Miscellaneous 0 0 Total (full flexibility) 6,381,591 (286,463) 6,095,128 2,050,229 (159,973) 1,890, Transformation 26,069 26,069 0 Limited Flexibility 1.12 Capacity Building 226, , Capital Retrofits (7,559) (7,559) Small Water Works 5,123 5,123 3,647 3,647 Total (limited flexibility) 224, ,301 3, ,647 No Flexibility 3.2 Territory without Municipal Organization TOTAL 6,631,961 (286,463) 6,345,498 2,053,876 (159,973) 1,893,903 Continues on the next page 47

48 Notes to the Financial Statements EXPENDITURES BY AUSPICE Directly Operated Other Gross Offsetting Adjusted Gross Offsetting Adjusted Expenditures Revenues (Parent Gross Expenditures Revenues (Parent Gross contribution/ Expenditures contribution/ Expenditures other offsetting) other offsetting) Sch 2.3, Sch 2.3, Calculated Sch 2.3, Sch 2.3, Calculated Col. 9 Col (Sch 2.3, Col. 14 Col. 15 (Sch 2.3, Col. 13) Col. 16) Full Flexibility 1.1 General Operating 2,469,829 2,469, Regular Fee Subsidy 1,021,690 (631,370) 390, Extended Day Fee Subsidy Recreation Fee Subsidy Ontario Works Formal 64,221 64, Ontario Works Informal 0 15,043 15, Pay Equity Memorandum Special Needs Resourcing 11,923 11,923 3,731 3, Administration 0 1,626,255 1,626, Repairs and Maintenance 48,387 48, Play-based Material 2,852 2, Miscellaneous 0 0 Total (full flexibility) 3,618,902 (631,370) 2,987,532 1,645, ,645, Transformation 0 0 Limited Flexibility 1.12 Capacity Building Capital Retrofits Small Water Works 0 0 Total (limited flexibility) No Flexibility 3.2 Territory without Municipal Organization 0 TOTAL 3,618,902 (631,370) 2,987,532 1,645,029 0 Continues on the next page 48

49 Notes to the Financial Statements EXPENDITURES BY AUSPICE Gross Expenditures Total Expenditures Offsetting Revenues (Parent contribution/other offsetting) Adjusted Gross Expenditures Calculated Calculated Calculated Full Flexibility 1.1 General Operating 5,150, ,150, Regular Fee Subsidy 4,101,213 (1,051,185) 3,050, Extended Day Fee Subsidy 45,457 (6,753) 38, Recreation Fee Subsidy 198,094 (19,868) 178, Ontario Works Formal 254, , Ontario Works Informal 15, , Pay Equity Memorandum 105, , Special Needs Resourcing 2,036, ,036, Administration 1,626, ,626, Repairs and Maintenance 104, , Play-based Material 57, , Miscellaneous Total (full flexibility) 13,695,751 (1,077,806) 12,617, Transformation 26, ,069 Limited Flexibility 1.12 Capacity Building 226, , Capital Retrofits (7,559) 0 (7,559) 3.1 Small Water Works 8, ,770 Total (limited flexibility) 227, ,948 No Flexibility 3.2 Territory without Municipal Organization TOTAL 13,949,768 (1,077,806) 12,871,962 49

50 Notes to the Financial Statements 16. SERVICE CONTRACT APPROVAL WITH THE MINISTRY OF CHILDREN AND YOUTH SERVICES The County has a service contracts with the Ministry of Children and Youth Services. A requirement of this service contract is the production of a report by management (Transfer Payment Annual Reconciliation), which summarizes all revenues and expenditures relating to the service contract. Ministry reporting is based on modified accrual accounting which forms the basis of funding and is also guided by the following ministry policies and programme guidelines: Admissible / inadmissible expenditures (2013/14) Retainable and Non-Retainable Revenue (2013/14) This method of accounting requires the inclusion of short term accruals of revenue and normal operating expenditures in the determination of operating results for a given time period. Short-term accruals are defined as payable or receivable usually within 30 days of the budget year-end. The modified accrual basis of accounting, as defined by the ministry, does not recognize non-cash transactions such as amortization, charges/appropriations to reserves or allowances as these expenses do not represent an actual cash expenditure related to the current period. A review of these revenues and expenditures, by detail code, are outlined below. The identified surplus / (deficit) position is reflected prior to the application of flexibility. Service Name REVENUES EXPENDITURES SURPLUS/ Ministry Funding Legislated Cost Share Other Total (DEFICIT) A525 ELCD Planning 38,425 38,425 39,356 (931) 17. PENSION AGREEMENTS The County makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a multi employer plan, on behalf of approximately 570 members of its staff. The plan is a defined benefit plan, which specifies the amount of 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 $3,027,085 (2012 $2,620,642) for current service and past service costs and is included as an expense on the Consolidated Statement of Operations. 18. SOCIAL HOUSING PROPERTIES The County has title to the 1189 Social Housing units of the former Wellington-Guelph Housing Authority. The units are located in the City of Guelph and throughout the County. The related debt on these units remains with the Province of Ontario. Of the $3,351,425 (2012 $3,341,753) in federal government subsidies provided to the County for social housing, $1,179,023 (2012 $1,179,023) is retained by the province to fund the associated debt servicing costs. 19. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform to the current year s presentation. 50

51 Notes to the Financial Statements 20. SEGMENTED INFORMATION The County of Wellington is a diversified municipal government institution that is responsible for ensuring the provision of a wide range of services to its citizens, including police, roads, solid waste services, ambulance, public health, child care, social housing, Ontario Works, homes for the aged, museum, library and planning. County services are provided by departments and their activities are reported in the Consolidated Statement of Operations. Certain departments have been separately disclosed in the segmented information in the following schedule. 51

52 Notes to the Financial Statements 2013 General Government Protection Transportation Services Environmental Services Health Services Social Housing Revenues Taxation 7,377,860 18,464,100 18,916,300 5,684,100 5,677,800 3,580,200 Grants and Subsidies Municipal Revenue Fees and Service Charges Licenses, Permits, Rents Interest, Donations, Other Development Charges 5,174, ,890 1,520, ,602 5,059,009 5,237,472 32, ,810 1,753,016 14,492, , ,756 (79,470) 2,459,653 (42,864) 1,070, ,955 12,887 5,653,432 3,024,313 (15,040) 110, ,141 11,580 16,290 Total Revenues 17,119,922 19,837,745 22,918,990 8,978,242 10,733,349 28,936,589 Expenses Salaries and Benefits Goods and Services Transfer Payments Insurance and Interest 6,509, ,912 4,411,666 2,201,104 3,237,134 2,793,259 4,661, ,734 10,455,205 4,929,980 2,625,456 6,988, ,000 16,241,512 3,628,415 15,689, , , ,954 76,378 52, ,076 Amortization 974, ,895 12,087, , ,007 2,721,462 Total Expenses 12,852,998 17,647,545 27,257,804 7,481,141 9,872,636 28,538,100 Continues on the next page 52

53 Notes to the Financial Statements 2013 Social and Family Services Library Museum Planning and Development Consolidated Revenues Taxation 9,396,000 5,116,300 1,673,100 3,399,800 79,285,560 Grants and Subsidies 37,424, ,213 52,264 (3,334) 55,736,161 Municipal Revenue 7,613,625 26,160 34,277 24,596,190 Fees and Service Charges Licenses, Permits, Rents Interest, Donations, Other Development Charges 4,300,013 99,603 76, ,161 7,691,941 34,344 19,871 6,955,891 3,009,273 4, ,117 1,112,949 Total Revenues 58,738,765 5,599,737 1,821,722 3,702, ,387,965 Expenses Salaries and Benefits 22,247,485 3,406,949 1,172,856 1,871,510 48,207,070 Goods and Services 3,053, , , ,470 34,974,769 Transfer Payments 27,580,820 6, ,078 63,779,170 Insurance and Interest 989, ,922 16,679 8,387 2,692,805 Amortization 665,299 1,132, ,096 46,904 18,765,785 Total Expenses 54,535,789 5,682,218 1,829,010 2,722, ,419,599 53

54 Notes to the Financial Statements 2012 General Government Protection Transportation Services Environmental Services Health Services Social Housing Revenues Taxation 5,526,407 18,354,500 18,982,100 4,909,900 5,138,000 3,402,700 Grants and Subsidies Municipal Revenue Fees and Service Charges Licenses, Permits, Rents Interest, Donations, Other Development Charges Total Revenues 4,720, ,573 4,450, ,395 5,197,136 5,019,413 76, , ,778 31,151 13,765, , ,819 (432,419) 3,085,461 (5,200) 32, , ,386 12,886 5,504,996 3,033, ,029 10, ,125 97, ,477 28,507 15,014,656 19,699,139 23,877,098 8,902,642 10,399,867 27,724,741 Expenses Salaries and Benefits Goods and Services Transfer Payments Insurance and Interest 6,099, ,222 4,257,681 2,231,209 4,875,413 2,618,137 5,018, ,562 6,894,484 5,937, ,882 6,658,740 16,263,590 3,752,020 15,089, , , , , ,276 Amortization 729, ,917 11,339, , ,677 1,226,194 Total Expenses 12,368,901 17,660,996 22,784,377 8,767,472 9,255,992 25,925,890 Continues on the next page 54

55 Notes to the Financial Statements 2012 Social and Family Services Library Museum Planning and Development Consolidated Revenues Taxation 8,157,100 6,131,200 1,915,900 2,461,300 74,979,107 Grants and Subsidies 36,283, ,040 63,506 35,000 57,149,786 Municipal Revenue 8,097,645 24,703 40,133 23,199,960 Fees and Service Charges Licenses, Permits, Rents Interest, Donations, Other Development Charges 2,900, ,726 73, ,044 6,768,455 22,867 17,769 6,714,216 96,146 2,298 3,575 14,339 3,176,494 36, , ,006 Total Revenues 55,571,500 6,669,383 2,074,182 2,796, ,730,024 Expenses Salaries and Benefits 21,633,488 3,333,612 1,116,328 1,761,977 48,251,937 Inter- Goods and vices Transfer ments Insurance and est Ser- Pay- 3,061, , , ,105 30,554,924 27,450,819 2, ,000 63,008,537 1,042, ,054 16,863 6,039 2,681,011 Amortization 703,342 1,087, ,512 35,428 16,273,638 Total Expenses 53,891,547 5,561,565 1,689,758 2,863, ,770,047 55

56 Trust Fund Financial Statements For the Year Ended December 31,

57 Consolidated Financial Statements Independent Auditor s Report (trust Funds) To the Members of Council, Inhabitants and Ratepayers of the Corporation of the County of Wellington: We have audited the accompanying financial statements of the Trust Funds of The Corporation of the County of Wellington ("the Entity"), which comprise the financial position as at December 31, 2013 and the statement of operations 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 generally accepted accounting principles, 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 an 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 auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal 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, except as explained in the following paragraph. In common with many such organizations, the Entity derives certain of its revenue from sundry sources, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Entity and we were not able to determine whether any adjustment might be necessary to such revenues, excess of revenues over expenditures, assets or fund balances. 57

58 Consolidated Financial Statements Independent Auditor s Report (trust Funds) Page 2 Opinion In our opinion, except for the above-mentioned limitation on the scope examination, the financial statements present fairly, in all material respects, the financial position of the Trust Funds of The Corporation of the County of Wellington as at December 31, 2013, and the results of its operations for the year then ended in accordance with Canadian generally accepted accounting principles. Chartered Professional Accountants, Licensed Public Accountants May 29, 2014 Waterloo, Canada 58

59 Consolidated Financial Statements Trust Funds Statement of Financial Position County of Wellington Trust Funds Statement of Financial Position As at December 31, 2013 Comfort Money County Wellness Centre Safe Communities Financial Assets Cash and Bank 42,240 13,186 18,354 73,780 52,114 Liabilities Balance 42,240 13,186 18,354 73,780 52,114 The accompanying notes are an integral part of these financial statements. 59

60 Consolidated Financial Statements Trust Funds Statement of Operations County of Wellington Trust Funds Statement of Operations For the year ended December 31, 2013 Comfort Money County Wellness Centre Safe Communities Balance at the beginning of the year 43,934 8,180-52,114 72,729 Source of Funds: Deposits 201,230 45,230 30, , ,715 Use of Funds Withdrawals 202,924 40,224 12, , ,330 Balance at the end of the year 42,240 13,186 18,354 73,780 52,114 The accompanying notes are an integral part of these financial statements. 60

61 Notes to the Trust Fund Financial Statements 1. ACCOUNTING POLICIES These trust funds have not been consolidated with the financial statements of the County of Wellington (the "County"). These financial statements reflect the financial activity and financial position of funds held in trust by the County for residents of the Wellington Terrace Home for the Aged (Comfort Money), for County staff who are the members of the County Wellness Centre and for the Wellington County Safe Communities Committee. In October 2012 the Safe Communities Trust fund was established. These funds are held in trust by the County for use by the Wellington County Safe Communities Committee. Funds held in trust are maintained in separate bank accounts by the County on behalf of the Terrace residents and Safe Communities Committee. Net County Wellness Centre membership proceeds are maintained in the County s general bank account. Interest is credited to the funds and allocated to the Terrace residents and Wellington County Safe Communities Committee on the basis of their individual balances in the fund. 61

62 Statistical Data For the Year Ended December 31,

63 Five-Year Financial Statistics Consolidated Statement of Operations Sources of Revenue Taxation $ 79,285,560 $ 74,979,107 $ 75,315,955 $ 72,411,925 $ 69,607,507 Government Transfers Provincial 50,518,274 48,938,858 47,987,842 51,323,057 46,688,933 Federal 5,217,887 8,210,928 7,452,938 6,175,325 6,255,306 Municipal 24,596,190 23,199,960 22,893,086 25,485,374 26,384,563 Fees and Service Charges 7,691,941 6,768,455 8,112,060 8,506,492 7,956,113 Licenses, Permits, Rent 6,955,891 6,714,216 6,652,592 6,432,482 6,200,362 Interest, Donations, Other 3,009,273 3,176,494 3,155,222 2,708,001 3,034,687 Development Charges Earned 1,112, , , ,630 1,522,805 Expenses by Function 178,387, ,730, ,414, ,369, ,650,276 General Government 12,852,998 12,368,901 10,987,530 11,941,563 12,955,272 Protection to Persons and Property 17,647,545 17,660,996 16,761,625 18,652,121 16,195,698 Transportation Services 27,257,804 22,784,377 22,089,584 17,608,673 17,296,525 Environmental Services 7,481,141 8,767,472 10,056,808 9,486,931 7,764,645 Health Services 9,872,636 9,255,992 8,927,709 8,874,844 8,233,359 Social Housing 28,538,100 25,925,890 28,688,463 29,313,891 25,954,065 Social and Family Services 54,535,798 53,891,547 50,931,646 53,228,625 54,271,926 Library and Museum 7,511,228 7,251,323 6,763,080 6,557,465 5,699,591 Planning and Development 2,722,349 2,863,549 2,129,880 2,628,413 2,127, ,419, ,770, ,336, ,292, ,498,652 Annual Surplus (Deficit) 9,968,366 11,959,977 15,078,319 15,076,760 17,151,624 Accumulated Surplus (Deficit), Beginning of Year 394,335, ,375, ,296, ,220, ,068,483 Accumulated Surplus (Deficit), End of Year $ 404,303,529 $ 394,335,163 $ 382,375,186 $ 367,296,867 $ 352,220,107 Expenses by Object Salaries and Benefits $ 48,207,070 $ 48,251,937 $ 45,484,883 $ 43,142,425 $ 41,752,013 Goods and Services 34,974,769 30,554,924 34,301,690 38,609,319 31,447,051 Transfer Payments 63,779,170 63,008,537 60,046,460 60,836,065 61,976,715 Insurance and Interest 2,692,805 2,681,011 2,150,109 4,244,406 4,180,078 Amortization 18,765,785 16,273,638 15,353,183 11,460,311 11,142,795 $ 168,419,599 $ 160,770,047 $ 157,336,325 $ 158,292,526 $ 150,498,652 63

64 Five-Year Financial Statistics Consolidated Statement of Financial Position Financial Assets $ 107,740,395 $ 97,437,824 $ 89,595,912 $ 86,220,617 $ 72,456,880 Financial Liabilities 41,161,828 35,716,460 36,760,546 41,776,810 35,484,023 Net Long-term Liabilities 37,620,894 31,936,324 30,654,886 32,974,551 29,648,125 Net Financial Assets 28,957,673 29,785,040 22,180,480 11,469,256 7,324,732 Tangible Capital Assets 372,855, ,793, ,955, ,346, ,383,117 Prepaids and Inventory 2,490,585 1,756,351 2,239,543 1,481,269 1,512,258 Accumulated Surplus $404,303,529 $394,335,163 $382,375,186 $367,296,867 $352,220,107 RESERVE AND RESERVE FUNDS Reserves and Reserve Funds $ 66,619,638 $ 65,699,391 $ 60,699,380 $ 50,964,902 $ 42,748,195 NET LONG-TERM LIABILITIES Supported by General Municipal Revenues $ 33,435,894 $ 28,147,324 $ 28,362,886 $ 30,488,551 $ 26,972,125 Development Charges 4,185,000 3,789,000 2,292,000 2,486,000 2,676,000 $ 37,620,894 $ 31,936,324 $ 30,654,886 $ 32,974,551 $ 29,648,125 CHARGES FOR NET LONG-TERM LIABILITIES Supported by General Municipal Revenues $ 3,734,279 $ 3,717,710 $ 3,786,804 $ 3,472,218 $ 3,163,351 Development Charges 448, , , ,611 92,464 $ 4,182,618 $ 4,060,298 $ 3,986,236 $ 3,661,829 $ 3,255,815 Provincial Annual Debt Repayment Limit $ 19,722,419 $ 18,778,974 $ 18,434,864 $ 19,266,406 $ 16,726,149 64

65 Five-Year Financial Statistics Consolidated Statement of Change in Net Financial Assets Annual Surplus $ 9,968,366 $ 11,959,977 $ 15,078,319 $ 15,076,760 $ 17,151,624 Acquisition of Tangible Capital Assets (30,403,091) (23,589,942) (20,337,923) (23,674,797) (28,502,088) Amortization of Tangible Capital Assets 18,765,785 16,273,638 15,353,183 11,460,311 11,142,795 Loss on Disposal of Tangible Capital Assets 1,254,206 2,032,016 1,155, , ,450 Proceeds on Sale of Tangible Capital Assets 321, , , , ,099 (93,133) 7,121,368 11,469,498 4,113, ,880 Acquisition of Inventories of Supplies (505,388) (640,989) (611,554) (594,890) (603,137) Acquisition of Prepaid Expenses (1,985,197) (1,115,362) (1,627,989) (886,379) (904,349) Consumption of Inventories of Supplies 640, , , , ,847 Use of Prepaid Expenses 1,115,362 1,627, , , ,620 Change in Net Financial Assets (827,367) 7,604,560 10,711,224 4,144, ,861 Net Financial Assets, Beginning of Year 29,785,040 22,180,480 11,469,256 7,324,732 7,170,871 Net Financial Assets, End of Year $ 28,957,673 $ 29,785,040 $ 22,180,480 $ 11,469,256 $ 7,324,732 65

66 Five-Year Financial Statistics Net Book Value of Tangible Capital Assets Land $ 31,244,947 $ 31,150,126 $ 32,259,230 $ 32,259,230 $ 32,138,168 Landfill Sites 1,094,850 1,145,628 1,204,765 1,240,817 1,289,811 Buildings 99,584, ,018,829 94,150,246 87,618,090 70,047,287 Infrastructure Roads 162,272, ,515, ,033, ,580, ,723,093 Bridges 33,974,302 32,125,477 33,848,967 34,914,294 34,608,023 Culverts 8,543,349 6,326,719 6,016,663 5,138,225 4,722,868 Traffic Lights 787, , ,391 1,088,544 1,188,413 Parking Lots 500, ,140 Vehicles and Machinery Licensed Equipment 5,350,494 4,722,152 4,836,248 4,636,626 4,573,814 Unlicensed Equipment 4,264,826 4,744,880 4,178,011 3,916,701 3,513,595 Furniture and Fixtures 3,350,926 3,198,603 3,001,530 2,644,387 2,828,463 Technology and Communications 2,750,542 2,442,546 1,885,325 1,631,518 1,745,759 Library Books and Media 1,504,518 1,596,972 1,565,289 1,521,424 1,496,467 Public Health 5,690,508 1,706, , , ,918 Capital Work-in-Progress 11,941,023 6,182,449 7,124,346 6,773,193 19,318,438 Total $ 372,855,271 $ 362,793,772 $ 357,955,163 $ 354,346,342 $ 343,383,117 66

67 Five-Year Financial Statistics Consolidated Reserves and Reserve Funds Capital Related Reserves Road Capital $ 9,042,710 $ 10,044,402 $ 10,293,107 $ 8,239,287 $ 7,230,689 Social Services and Social Housing 8,463,892 6,972,843 5,874,452 4,594,202 2,760,883 Terrace Building 5,893,366 6,878,168 3,957, , ,501 County Property 4,270,052 5,640,524 6,839,224 7,037,862 3,122,713 Hospital Capital Grants 3,890,877 3,940,100 4,040,100 4,521,846 3,973,775 Solid Waste Services 3,490,127 3,702,524 3,434,325 3,111,932 2,775,479 General Capital 2,881,281 2,501,875 1,835,070 1,465,511 1,199,573 Land Ambulance and POA Capital 574, , , ,866 1,845,181 Programme Specific 877, , , , ,001 $ 39,384,621 $ 40,650,522 $ 37,283,448 $ 30,498,461 $ 23,597,795 Contingency/Stabilization/Working Reserves Corporate Contingency $ 6,135,426 $ 5,932,205 $ 5,980,014 $ 5,805,602 $ 5,716,690 Employee Benefits, Sick Leave and STD 2,900,430 2,817,190 2,720,777 2,636,244 2,488,958 Tax Levy Stabilization 1,967, , , , ,476 Winter Control 1,299,103 1,256,074 1,061, ,292 Corporate Insurance 305, , , , ,181 Programme Specific 718, , ,396 $ 13,326,232 $ 11,776,941 $ 11,490,053 $ 10,464,456 $ 9,362,305 Specific Purpose Reserve Funds Landfill Closure and Post Closure $ 4,740,498 $ 4,544,474 $ 4,229,811 $ 3,713,057 $ 4,176,095 Workplace Safety and Insurance 3,348,711 3,452,902 3,064,663 2,367,565 2,055,273 Best Start Programme 2,592,832 2,607,396 2,567,140 2,471,534 2,388,798 Housing Development 1,978,310 1,441, , ,010 Federal Housing Projects 924, , , , ,207 Museum and Terrace Donations 324, , , , ,722 $ 13,908,785 $ 13,271,928 $ 11,925,879 $ 10,001,985 $ 9,788,095 Total Reserves and Reserve Funds $ 66,619,638 $ 65,699,391 $ 60,699,380 $ 50,964,902 $ 42,748,195 67

68 Five-Year Financial Statistics Property Taxes Property Tax Rates by Class Residential/Farm % % % % % Multi-Residential Farmland Commercial Industrial Pipeline Managed Forests County Tax Levy ($000) $77,912 $75,383 $73,045 $70,056 $67,761 Residential Tax Impact 2.4% 1.9% 2.7% 2.6% 2.4% Weighted Assessment ($000) $11,718,000 $11,374,000 $10,647,000 $9,904,000 $9,248,000 Taxable Assessment ($000) Residential $9,349,414 $9,023,560 $8,456,991 $7,899,743 $7,437,649 Non-residential $3,262,529 $3,009,061 $2,816,630 $2,602,594 $2,353,162 Total Taxable Assessment $12,611,942 $12,032,621 $11,273,621 $10,502,337 $9,790,811 68

69 Five-Year Financial Statistics Municipal Statistics As shown by the building permit values in the table below, both residential and non-residential development has been steady. Ontario Places to Grow has forecasted the County s population to be 122,000 in 2031 and 140,000 in 2041, which indicates stable growth throughout the years to come. Employment is forecasted to reach 54,000 in 2031 and 61,000 in 2041 reflecting expansion of Wellington s economy, backed by the ongoing implementation of a solid Economic Development Strategy Population* 95,784 94,628 93,641 93,636 92,612 Households* 32,651 32,194 31,788 31,862 31,404 Average Unemployment Rate** 5.7% 5.95% 6.95% 7.93% 7.88% Jobs 41,788 40,997 39,917 38,691 37,802 Residential Permit Values ($000) (a) $101,593 $131,873 $107,729 $104,749 $93,250 Non-residential Permit Values ($000) (b) $100,114 $121,472 $57,720 $66,425 $74,709 Per Household Information County Tax Levy Per Household $2,386 $2,342 $2,298 $2,199 $2,158 Debt Charges Per Household $128 $126 $125 $115 $104 Tangible Capital Assets Per Household $11,419 $11,269 $11,261 $11,121 $10,934 Total Debt Outstanding Per Household $1,152 $992 $964 $1,035 $944 * Note: These figures were used in the County s FIR and were forecasted based on the 2006 census. ** Note: Unemployment figures include the City of Guelph, which is not part of the County of Wellington (a) (b) Source: Statistics Canada Investment and Capital Stock Division, Building Permits, Publication XWF 69

70 Five-Year Financial Statistics Principal Corporate Taxpayers (County, Lower tier, and School Board) Top 20 Corporate Taxpayers In 2013 Nestle Waters Canada Puslinch $972,431 Jefferson Elora Corporation Centre Wellington $802,307 Morguard Brock McLean Ltd. Puslinch $757,857 TG Minto Corporation Minto $651,666 Con Cast Pipe Inc. Puslinch $418,740 Royal Canin Canada Puslinch $354,485 Coldpoint Holdings Ltd. Guelph/Eramosa $328,157 Musashi Auto Parts Canada Wellington North $237,196 RioCan Real Estate Investment Trust Centre Wellington $228,631 Dufferin Aggregates Puslinch $207,410 Riokim Holdings Inc. Centre Wellington $205,031 Russel Metals Inc. Puslinch $203,916 Pentalift Equipment Corporation Puslinch $201,587 Nexans Canada Centre Wellington $199,417 Shanti Enterprises Minto $180,623 Darling International Inc. Mapleton $172,032 A. O. Smith Enterprises Centre Wellington $167,322 Sligo Road Ltd. Wellington North $164,584 Wallenstein Feed and Supply Ltd. Mapleton $164,575 Golden Valley Farms Inc. Wellington North $158,528 70

71 Acknowledgements The County Treasurer would like to thank the following staff members for their assistance during the preparation of the Annual Financial Report: Susan Aram, Manager of Financial Services Simon Burgess, Financial Analyst Operating Cathy Butcher, Financial Analyst Capital Troy Byrne, Accounting Analyst Social Services Shauna Calder, Senior Financial Analyst Social Services Tracy Dunsmore, Accounting Analyst Mark Paoli, Manager of Policy Planning Jana Reichert, Economic Development Officer Emma Reddish, Property Tax Analyst Carolyn Roy, Accounting Analyst Katherine Salis, Student, Financial Services 71

72 The County of Wellington Woolwich Street Guelph, ON N1H 3T9 Alternative formats of this publication are available upon request. 72