The Corporation of the City of Cambridge

Transcription

1 The Corporation of the City of Cambridge 2016 Financial Report PEOPLE PLACE PROSPERITY

2 City Council Mayor Doug Craig Councillors Ward 1 Councillor Donna Reid Ward 2 Councillor Mike Devine Ward 3 Councillor Mike Mann Ward 4 Councillor Jan Liggett Ward 5 Councillor Pam Wolf Ward 6 Councillor Shannon Adshade Ward 7 Councillor Frank Monteiro Ward 8 Councillor Nicholas Ermeta

3 City Officials Gary Dyke David Bush Steven Fairweather Neil Main George Elliott Kent McVittie Hardy Bromberg City Manager Commissioner of Human Resources and Legislative Services Chief Financial Officer Fire Chief Commissioner of Transportation and Public Works Commissioner of Community Services Commissioner of Planning and Development Auditors Graham Mathew Professional Corporation Chartered Professional Accountants Bankers TD Canada Trust

4 Table of Contents Page Number Six Year Financial Review 1-2 Consolidated Financial Statements 3 Responsibility for Financial Reporting 4 Auditors' Report 5 Consolidated Statement of Financial Position 6 Consolidated Statement of Operations and Accumulated Surplus 7 Consolidated Statement of Change in Net Financial Assets 8 Consolidated Statement of Cash Flows 9 Notes to the Consolidated Financial Statements Financial Statements, Trust Funds 26 Auditors' Report 27 Financial Position 28 Statement of Continuity Notes to the Financial Statements 37 Financial Information Return 38 Declaration of the Municipal Treasurer (02) 39 Consolidated Statement of Operations: Revenue (10) Grants, User Fees and Service charges (12) 42 Taxation Information (20) 43 Municipal and School Board Taxation (22) Payments-in-lieu of Taxation (24) Taxation & Payments-in-lieu Summary (26) Consolidated Statement of Operations: Expenses (40) Additional Information - Expenses (42) 54 Schedule of Tangible Capital Assets (51) Consolidated Statement of change in Net Financial Assets (53) 59 Consolidated Statement of Cashflow (54) 60 Continuity of Reserves and Reserve Funds (60) Development Charges Reserve Funds (61) 63 Development Charges Rates (62) 64 Consolidated Statement of Financial Position (70) Continuity of Taxes Recievable (72) Long Term Liabilities and Commitments (74) Government Business Enterprises (76) 73 Statistical Information (80) Annual Debt Repayment Limit (81) 82

5 Table of Contents Financial Statements, Boards and Enterprises Page Number The Cambridge Public Library Board Cambridge and North Dumfries Energy Plus Inc Downtown Cambridge Business Improvement Area Preston Towne Centre Business Improvement Area Downtown Hespeler Business Improvement Area

6 Six-Year Financial Review (Unaudited) (all dollar amounts are 000's, except per capita figures) Population at the end of the year* 133, , , , , ,700 Area in acres at the end of the year 28,556 28,556 28,556 28,556 28,556 28,556 Employees - continuous F/T budget approved complement Number of households 49,400 48,700 48,320 47,770 47,770 46,460 Assessment - taxable assessment upon which the year's rates of taxation were set ** Residential, multi-residential and farm $ 12,014,400 $ 11,569,032 $ 11,159,496 $10,711,340 $10,271,237 $ 9,619,340 Commercial - all classes 2,178,299 2,122,959 2,011,250 1,929,983 1,898,119 1,778,044 Industrial - all classes 863, , , , , ,626 Pipeline & Managed Forests 29,970 29,359 28,669 27,893 27,150 26,361 Total $ 15,085,999 $ 14,552,645 $ 14,015,333 $13,464,553 $12,990,081 $12,199,371 Per capita $ 112,666 $ 107,877 $ 104,748 $ 101,696 $ 97,743 $ 88,591 Commercial and industrial, as a percentage of taxable 20 % 20 % 20 % 20 % 21 % 21 % assessment Exempt assessment $ 639,676 $ 587,576 $ 524,735 $ 486,703 $ 510,672 $ 455,592 Tax arrears - per capita $ $ $ $ $ $ percentage of current levy 7.33 % 7.42 % 9.09 % 9.00 % 9.09 % 8.52 % Expenditure - general municipal purposes $ 157,162 $ 150,246 $ 140,927 $ 131,494 $ 122,139 $ 122,393 Transfers to the Region $ 147,781 $ 142,845 $ 139,799 $ 134,719 $ 127,465 $ 123,436 Transfers to the School Boards $ 65,714 $ 65,741 $ 65,789 $ 65,161 $ 63,671 $ 67,182 Revenue for general municipal services Taxation $ 78,368 $ 76,358 $ 72,344 $ 70,238 $ 68,270 $ 65,687 Payments in lieu of taxes Ontario grants 1,457 1,499 1,882 1,618 1,682 1,713 Fees and services charges 74,180 68,910 65,364 63,953 59,011 55,737 Other 4,992 5,208 5,991 6,225 5,577 5,288 Total $ 159,908 $ 152,875 $ 146,431 $ 142,886 $ 135,382 $ 129,272 * Population estimate was revised in 2011 based on Statistics Canada Census; prior periods' figures were not restated ** Reflects general revision of market value assessment

7 Six-Year Financial Review (Unaudited) (all dollar amounts are 000's, except per capita figures) Net long-term liabilities General municipal activities $ 26,179 $ 21,710 $ 14,175 $ 15,591 $ 17,472 $ 19,313 - per capita $ 196 $ 161 $ 107 $ 118 $ 131 $ percentage of taxable assessment 0.17 % 0.11 % 0.10 % 0.13 % 0.16 % 0.10 % Charges for net long-term liabilities General municipal activities $ 592 $ 430 $ 458 $ 492 $ 522 $ per capita $ 4.42 $ 3.19 $ 3.46 $ 3.72 $ 3.93 $ percentage of taxable assessment % % % % % % Capital financing during the year Contributions from own funds $ 16,291 $ 22,388 $ 32,254 $ 23,727 $ 26,255 $ 23,472 Canada & Ontario grants 6,127 5,119 3,265 2,071 1,325 9,470 Other 1,848 1, ,381 Total $ 24,266 $ 28,558 $ 36,298 $ 26,527 $ 28,532 $ 40,216 Capital expenditures during the year $ 38,788 $ 36,618 $ 30,794 $ 27,862 $ 32,127 $ 33,148 Accumulated surplus - Operating fund $ 209 $ 60 $ 266 $ 356 $ 986 $ (403) - Reserves and reserve funds $ 70,453 $ 63,302 $ 53,790 $ 57,325 $ 53,666 $ 51,619 - Invested in tangible capital assets $ 560,671 $ 535,751 $ 524, , , ,088 - Invested in repair and replacement of assets $ 21,744 $ 29,016 $ 27,526 21,516 22,355 25,951 - Cambridge and North Dumfries Energy Plus Inc. $ 79,236 $ 75,880 $ 73,211 $ 70,665 $ 68,404 $ 66,268 - Land held for resale $ 13,941 $ 13,424 $ 14,920 16,492 11,770 7,016 Deferred revenues $ 30,347 $ 28,583 $ 28,566 $ 26,793 $ 22,728 $ 20,777

8 Consolidated Financial Statements Year Ended December 31,

9 Responsibility for Financial Reporting For the year ended December 31, 2016 The accompanying Consolidated Financial Statements and all other information contained in this Annual Report are the responsibility of the management of The Corporation of the City of Cambridge. The preparation of periodic financial statements involves the use of estimates and approximations because the precise determination of financial information frequently depends on future events. These Consolidated Financial Statements have been prepared by management within the reasonable limits of materiality and within the framework of Canadian generally accepted accounting principles for governments established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. In carrying out its responsibilities, management maintains appropriate systems of internal and administrative controls designed to provide reasonable assurance that transactions are executed in accordance with proper authorization, that assets are properly accounted for and safeguarded, and that financial information produced is relevant and reliable. Prior to their submission to Council, the Consolidated Financial Statements are reviewed and approved by the Management Committee. In addition, management meets periodically with the City's external auditors to approve the scope and timing of their respective audits, to review their findings and to satisfy itself that their responsibilities have been properly discharged. Graham Mathew Professional Corporation, Chartered Professional Accountants, as the City's appointed external auditors have audited the Consolidated Financial Statements. The external auditors have full and free access to management and Council. The Auditors' Report is dated May 16, 2017 and appears on the following page. Their opinion is based upon an examination conducted in accordance with Canadian generally accepted auditing standards, performing such tests and other procedures as they consider necessary to obtain reasonable assurance that the Consolidated Financial Statements are free of material misstatements and present fairly the financial position and results of operations of the City in accordance with Canadian public sector accounting standards.... Gary Dyke, City Manager... Steven Fairweather, CPA, CA, MPA Chief Financial Officer 4

10 INDEPENDENT AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Cambridge We have audited the accompanying consolidated financial statements of The Corporation of the City of Cambridge, which comprise the consolidated statement of financial position as at December 31, 2016, and the consolidated statements of operations and accumulated surplus, change in net financial assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of The Corporation of the City of Cambridge as at December 31, 2016, and the results of its operations, changes in its net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Cambridge, Ontario May 16, 2017 Chartered Professional Accountants, authorized to practise public accounting by the Chartered Professional Accountants of Ontario 5

11 Consolidated Statement of Financial Position As at December 31, (Restated Note 12) Financial assets Liabilities Cash and cash equivalents $ 48,509,280 $ 47,621,068 Taxes and grants-in-lieu (Note 5) 19,036,695 18,787,087 Trade and other receivables (Note 5) 14,897,363 12,533,911 Land held for resale 13,940,682 13,423,828 Investments (Note 6) 149,613, ,512, ,997, ,878,196 Accounts payable and accrued liabilities 31,739,139 32,293,484 Employee future benefits (Note 7) 63,403,532 60,636,966 Deferred revenue (Note 8) 30,346,557 28,583,426 Long-term debt (Note 9) 26,178,753 21,710, ,667, ,224,031 Net financial assets 94,329,282 97,654,165 Non-financial assets Tangible capital assets (Notes 10 and 12) 560,670, ,694,384 Inventories of supplies 533, ,236 Prepaid expenses 1,216, , ,420, ,446,710 Accumulated surplus (Note 15) $ 656,749,566 $ 640,100,875 Approved by The accompanying notes are an integral part of these financial statements 6

12 Consolidated Statement of Operations and Accumulated Surplus For the year ended December 31, Budget (Note 14) 2016 Actual 2015 Actual (Restated Note 12) Revenues Taxation $ 79,014,200 $ 79,228,209 $ 77,257,657 User fees and charges 75,330,800 74,180,057 68,909,763 Penalties and interest on taxes 2,500,000 2,957,433 3,090,288 Investment income 844, , ,577 Fines 1,124,000 1,080,487 1,153,798 Government transfers Canada 72,000 72,000 72,000 Ontario 1,405,000 1,457,149 1,499,141 Deferred revenue earned 190, , ,748 Land sales and other 3,784,650 3,449,664 3,414,026 Total revenues 164,266, ,498, ,217,998 Expenses General government 24,151,876 24,932,219 22,398,367 Protection to persons and property 24,924,900 25,452,248 25,156,955 Transportation services 25,382,215 24,298,127 22,609,197 Environmental services 68,113,563 63,714,869 57,485,116 Health services 1,400,956 1,363,943 1,345,081 Social and family services 2,400,200 2,507,508 2,556,984 Recreation and cultural services 31,088,982 31,186,689 31,743,288 Planning and development 4,188,354 4,063,790 3,735,702 Total expenses 181,651, ,519, ,030,690 Net expenses before other income (17,384,996) (14,021,177) (9,812,692) Other income Grants and transfers related to capital Deferred revenue earned 1,438,568 3,115,027 Government transfers - Federal 6,127,352 5,119,426 Donated tangible capital assets (Note 10) 15,990,209 12,542,520 Share of net income for the year from Cambridge and North Dumfries Energy Plus Inc. (Note 6) 5,903,610 5,571,129 Interest earned on reserves 1,210,129 1,208,790 30,669,868 27,556,892 Annual Surplus 16,648,691 17,744,200 Accumulated surplus, beginning of year (Note 12) 640,100, ,356,675 Accumulated surplus, end of year $ 656,749,566 $ 640,100,875 The accompanying notes are an integral part of these financial statements 7

13 Consolidated Statement of Change in Net Financial Assets For the year ended December 31, Budget (Note 14) 2016 Actual 2015 Actual (Restated Note 12) Annual surplus (deficit) $ (17,384,996) $ 16,648,691 $ 17,744,200 Acquisition of tangible capital assets (43,496,200) (24,473,480) (19,917,409) Amortization of tangible capital assets - 20,357,745 16,784,868 (Gain) loss on sale of tangible capital assets - (21,803) 52,409 Proceeds on sale of tangible capital assets - 151, ,801 Donated tangible capital assets - (15,990,209) (12,542,520) Change in supplies inventories - 334,224 (305,608) Change in prepaid expenses - (331,650) 134,358 Change in net financial assets (60,881,196) (3,324,883) 2,166,099 Net financial assets, beginning of year 97,654,165 97,654,165 95,488,066 Net financial assets, end of year $ 36,772,969 $ 94,329,282 $ 97,654,165 The accompanying notes are an integral part of these financial statements 8

14 Consolidated Statement of Cash Flows For the year ended December 31, (Restated Note 12) Operating Annual surplus $ 16,648,691 $ 17,744,200 Capital Sources (uses) Taxes and grants-in-lieu (249,608) 3,810,404 Trade and other receivables (2,363,452) (467,571) Accounts payable and accrued liabilities (554,345) 678,299 Employee future benefits 2,766,566 2,564,694 Deferred revenue 1,763,131 17,495 Inventories of supplies 334,224 (305,608) Prepaid expenses (331,650) 134,358 Land held for resale (516,854) 1,496,010 Items not involving cash Amortization 20,357,745 16,784,868 Donated tangible capital assets (15,990,209) (12,542,520) (Gain) loss on sale of tangible capital assets (21,803) 52,409 Cash provided from operations 21,842,436 29,967,038 Acquisition of tangible capital assets (24,473,480) (19,917,409) Proceeds on disposal of tangible capital assets 151, ,801 Net investment in tangible capital assets (24,321,881) (19,701,608) Investing Net change in investments (1,100,941) (17,419,850) Financing Debt issued 7,250,000 9,550,000 Debt principal repayment (2,781,402) (2,014,588) Net increase in cash from financing activities 4,468,598 7,535,412 Net change in cash 888, ,992 Cash and cash equivalents, beginning of year 47,621,068 47,240,076 Cash and cash equivalents, end of year $ 48,509,280 $ 47,621,068 The accompanying notes are an integral part of these financial statements 9

15 Notes to the Consolidated Financial Statements For the year ended December 31, Municipal status The Corporation of the City of Cambridge ("the City") was created on January 1, 1973 when the three municipalities of Galt, Preston, and Hespeler and the settlement of Blair were amalgamated into a single legal entity under a new name. The City operates as a lower tier government in the Province of Ontario, Canada. Cambridge provides municipal services such as fire protection, public works, water distribution, urban planning, recreation and cultural services, and other general government services. The City owns 92.1% of its subsidiary, Cambridge and North Dumfries Energy Plus Inc. and its affiliates. 2. Summary of significant accounting policies The consolidated financial statements of the City are the representation of management, prepared in accordance with local government accounting standards established by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada. The following is a summary of the significant accounting policies followed in the preparation of these financial statements: (a) Basis of consolidation (i) Consolidated entities These consolidated statements reflect the financial assets, liabilities, operating revenues and expenses, reserve funds and reserves, changes in investment in tangible capital assets and cash flows and include the activities of all governmental functions controlled and exercised by the City and the following boards which are under the control of Council: The Cambridge Public Library Board Preston Towne Centre Business Improvement Area Downtown Cambridge Business Improvement Area Hespeler Village Business Improvement Area All inter-organizational transactions and balances between these entities have been eliminated. (ii) Government Business Enterprises The Cambridge and North Dumfries Energy Plus Inc. and its affiliates are not consolidated but are accounted for on the modified equity basis which reflects the City's investment in the enterprises and its share of net income or loss less dividends received since acquisition. Under the modified equity basis, the enterprises' accounting principles are not adjusted to conform with those of the City and interorganizational transactions and balances are not eliminated. (iii) Accounting for Region and School Board transactions The taxation, other revenues, expenditures, assets and liabilities, with respect to the operations of the School Boards and the Regional Municipality of Waterloo, are not reflected in these consolidated financial statements. (iv) Trust funds Trust funds and their related operations administered by the City are not consolidated, but are reported separately on the Trust Funds Statement of Financial Position and Statement of Continuity (see Note 4). 10

16 Notes to the Consolidated Financial Statements For the year ended December 31, Summary of significant accounting policies - Continued (b) Basis of accounting The City 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 legal obligation to pay. (c) Non-financial assets Non-financial assets are not normally available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. The change in non-financial assets during the year, together with the excess revenues over expenses, provides the consolidated change in net financial assets for the year. (i) Tangible capital assets Tangible capital assets are recorded at cost which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost of the tangible capital assets is amortized on a straight-line basis over their estimated useful lives as follows: Land Not Amortized Buildings 40 to 50 years Vehicles Specialty and fire trucks 9 to 20 years Vehicles 5 years Computer hardware and software 5 years Water and waste plants and networks Underground networks 40 to 80 years Transportation Roads 25 to 35 years Bridges and structures 30 to 50 years Other Machinery and equipment 5 to 15 years Land improvements 15 to 50 years Leasehold improvements 24 years The full amount of annual amortization is charged in year of disposal. Assets under construction are not amortized until the asset is available for productive use. (ii) Contributions of tangible capital assets (donated) Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and also are recorded as revenue. (iii) Interest capitalization The City does not capitalize interest costs associated with the acquisition or construction of a tangible capital asset. 11

17 Notes to the Consolidated Financial Statements For the year ended December 31, Summary of significant accounting policies - Continued (c) Non-financial assets - Continued (iv) Works of art and cultural and historic assets These non-operational heritage assets are not recorded in these financial statements. (v) Leases Leases are classified as capital or operating leases. Leases which transfer substantially all of the benefits and risks incidental to ownership of property are accounted for as capital leases. All other leases are accounted for as operating leases and the related lease payments are charged to expenses as incurred. (vi) Inventories and prepaid expenses Inventories held for consumption are recorded at the lower of cost and replacement cost. Prepaid expenses relate to expenditures incurred in the current period which relate to and will be expensed in a future fiscal period. (d) Employee future benefits The contributions to a multi-employer, defined benefit plan are expensed when the contributions are due. The costs of post-employment benefits are recognized when the event that obligates the City occurs. Costs include projected future income payments, health care continuation costs, and fees paid to independent administrators of these plans, calculated on a present value basis. The costs of post-employment benefits are actuarially determined using the projected benefits method prorated on service and management's best estimate of retirement ages of employees, salary escalation, and expected health care costs. Any gains or losses from changes in assumptions or experience are amortized over the average remaining service period for active employees. (e) Cash and cash equivalents Cash and cash equivalents are comprised of accounts maintained at chartered financial institutions. (f) Investments Investments generally consist of high grade bonds, guaranteed investment certificates, and interest rate savings accounts, and are recorded at the lower of cost plus accrued interest and market value. Investment income is reported as revenue in the period earned. Investment income earned on obligatory reserve funds is considered deferred until the funds are applied. 12

18 Notes to the Consolidated Financial Statements For the year ended December 31, Summary of significant accounting policies - Continued (g) Revenue recognition Revenues are recognized in the period in which the transactions or events occurred that gave rise to the revenues. All revenues are recorded on an accrual basis, except when the accruals cannot be determined with a reasonable degree of certainty or when their estimation is impracticable. Government transfers are recognized as revenues when the transfer is authorized and any eligibility criteria are met, except to the extent that transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers are recorded as deferred revenue when transfer stipulations give rise to a liability. Transfer revenue is recognized in the statement of operations as the stipulation liabilities are settled. Government transfers, contributions, and other amounts are received from third parties pursuant to legislation, regulation, or agreement and may only be used in the conduct of certain programs, in the completion of specific work, or the purchase of tangible capital assets. In addition, certain user charges and fees are collected for which the related services have yet to be performed. Revenue is recognized in the period when the related expenses are incurred, services performed, or the tangible assets are acquired. Tax revenue is recognized when it is authorized and in the period for which the tax is levied. (h) Land held for resale Land held for resale is recorded at the lower of cost and net realizable value. Cost includes amounts for land acquisition and improvements to prepare the land for sale or servicing. (i) Liability for contaminated sites Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard. The liability is recorded net of any expected recoveries. A liability for remediation of contaminated sites is recognized when all the following criteria are met: i. an environmental standard exists; ii. iii. iv. contamination exceeds the environmental standard; the City: is directly responsible; or accepts responsibility; and a reasonable estimate of the amount can be made. (j) 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 year. These estimates and assumptions, including employee benefits payable, taxation assessment appeals, legal claims provisions, liability for contaminated sites, the valuation of tangible capital assets and their related useful lives and amortization, are based on management's best information and judgement and may differ significantly from future actual results. 13

19 Notes to the Consolidated Financial Statements For the year ended December 31, Operations of School Boards and the Region of Waterloo Further to note (2) (a) (iii), the taxation, other revenues, and requisitions of the School Boards and the Regional Municipality of Waterloo are comprised of the following: School Boards Region of Waterloo Taxation and user charges $ 65,650,107 $ 147,177,285 Share of payments in lieu of taxes 63, ,940 Amounts requisitioned $ 65,713,772 $ 147,781, Trust funds Trust funds administered by the City amounting to $10,578,199 ($10,136,413 in 2015), have not been included in the Consolidated Statement of Financial Position nor have their operations been included in the Consolidated Statement of Operations and Accumulated Surplus. 5. Taxes and accounts receivable Taxes receivable and accounts receivable are reported net of a valuation allowance of $6,705,529 ($6,705,529 in 2015) and $140,934 ($138,569 in 2015) respectively. 6. Investments Investments are comprised of the following: Investment in Cambridge and North Dumfries Energy Plus Inc. Capital stock $ 37,792,000 $ 37,792,000 Increase in equity since acquisition 41,444,333 38,087,960 79,236,333 75,879,960 Marketable securities 70,376,910 72,632,342 Total investments $ 149,613,243 $ 148,512,302 Marketable securities have a market value of $69,970,628 ($71,989,072 in 2015). 14

20 Notes to the Consolidated Financial Statements For the year ended December 31, Investments - Continued On August 1, 2000, pursuant to requirements of the Ontario Government's Electricity Competition Act (Bill 35), the net assets of the Hydro Electric Commission of Cambridge and North Dumfries were transferred to Cambridge and North Dumfries Energy Plus Inc. ("Energy Plus") and affiliated companies. Energy Plus and affiliates will carry on the former business of the Commission with all its rights, duties, obligations and responsibilities from the date of transfer. The City of Cambridge owns 92.1% of Energy Plus and the change in the cost of the original investment by return of capital and its proportionate share of the consolidated operating gain of Energy Plus for the year ended December 31, 2016 is as follows (see note 2(a) (ii)): Cost of investment, beginning of year $ 75,879,960 $ 72,755,614 Increase in equity for year: Share of net income for year 5,903,610 5,571,129 Dividends received during year (2,547,237) (2,446,783) Net increase for year 3,356,373 3,124,346 Cost of investment, end of year $ 79,236,333 $ 75,879,960 The following table provides condensed financial information in respect of Energy Plus for its fiscal 2016 year: 2016 (000's) 2015 (000's) Financial position Current assets $ 57,846 $ 61,411 Capital assets $ 152, ,790 Goodwill $ 18,965 18,965 Other assets $ 9,281 10,384 Total assets 238, ,550 Current liabilities $ 40,771 41,096 Long-term liabilities $ 100,542 96,712 Total liabilities 141, ,808 Net assets 97,419 95,742 Statement of operations Revenues 254, ,259 Operating expenses $ (243,204) (219,295) Non-operating expenses $ (3,436) (5,087) Payments in lieu of corporate income taxes $ (1,888) (1,828) Net income 6,410 6,049 City's share of net income % $ 5,904 $ 5,571 15

21 Notes to the Consolidated Financial Statements For the year ended December 31, Employee and post employment benefits The City provides certain employee benefits which will require funding in future periods. An actuarial estimate of future liabilities has been completed and forms the basis for the estimated liability reported in these financial statements. All liabilities were estimated by an actuarial update as at December 31, Change Post-retirement benefits $ 54,911,377 $ 52,549,077 $ 2,362,300 Sick leave benefits 6,101,176 5,858, ,140 Workplace safety & insurance benefits 2,390,979 2,229, ,126 $ 63,403,532 $ 60,636,966 $ 2,766,566 The significant actuarial assumptions adopted in measuring the City's accrued benefit obligations for the accumulated sick leave and post-retirement benefit entitlements at December 31, 2016, are as follows: Information about the City's benefit plan is as follows: Future cost of long term debt 4.25% Future inflation rates 1.75% Future salaries escalations 2.75% Future dental premium rates escalations 3.75% Future health care premium rates: % Declining by 2024 to 3.75% Accrued Liability Balance, beginning of the year $ 60,636,966 $ 58,072,272 Current service cost 1,892,216 1,615,130 Interest cost 2,958,365 2,860,648 Amortization of net actuarial loss 580, ,327 Benefit payments (2,664,342) (2,491,411) Balance, end of the year $ 63,403,532 $ 60,636,966 a) Pension Plan The City makes contributions to the Ontario Municipal Employees Retirement System ("OMERS"), which is a multi-employer plan, on behalf of 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 lengths of service and rates of pay. Employee contributions are matched by the City. The amount contributed to OMERS for 2016 was $5,059,513 ($5,357,256 in 2015) for current service and is included as an expenditure on the consolidated statement of operations. The OMERS pension plan has a deficit. The last available report for the OMERS plan was on December 31, At that time the plan reported a $6.3 billion actuarial deficit ( $7.5 billion), based on actuarial liabilities of $91.7 billion ( $84.8 billion) and actuarial assets of $85.4 billion ( $77.3 billion). If actuarial surpluses are not available to offset the existing deficit and subsidize future contributions, increases in contributions will be required in the future. 16

22 Notes to the Consolidated Financial Statements For the year ended December 31, Employee and post employment benefits - Continued b) Post-retirement benefits The City makes available to qualifying employees who retire before the age of 65, the opportunity to continue their coverage for such benefits as extended health and drugs, dental care, and life insurance. Coverage ceases at the age of 65 except for life insurance and extended health and drugs. In addition, adjustments arising from the plan amendment, changes in assumptions, and experience gains and losses are amortized on a straight-line basis over 11 years, which represents the expected average remaining service life of the employee group. Amortization is calculated beginning in the year following the year of occurrence of the actuarial gains or losses. In fiscal 2016, an actuarial valuation report estimated the actuarial gain for the above mentioned post-retirement benefits to be $3,880,208 which is being amortized at $352,746 per year. The actuarial valuation report estimated the liability for the above mentioned employee future benefits to be $54,911,377 ($52,549,077 in 2015) at year end based on present value of the current obligation for past and current employees. c) Sick leave Under the sick leave benefit plan, unused sick leave can accumulate and certain employees may become entitled to a cash payment when they leave the City's employment. In addition, adjustments arising from the plan amendment, changes in assumptions, and experience gains and losses are amortized on a straight-line basis over 12 years, which represents the expected average remaining service life of the employee group. Amortization is calculated beginning in the year following the year of occurrence of the actuarial gains or losses. In fiscal 2016, an actuarial valuation report estimated the actuarial loss for the above mentioned sick leave to be $1,311,707 which is being amortized at $109,309 per year. The liability for these accumulated days based on an actuarial assessment, to the extent that they have vested and could be taken in cash by an employee on termination or retirement, amounted to $6,101,176 ($5,858,036 in 2015) at the end of the year. An amount of $581,696 ($342,376 in 2015) was paid to employees who either changed union groups or left the City's employment during the current year. The reserve fund was established to fund the cost of future employee benefits provided by the City. The balance at the end of the year was $10,121,707 ($9,677,873 in 2015). During the year the City conducted an internal review of the City's employee sick leave obligation. As a result of this review the City estimated the obligation to be approximately $7,502,676 ($7,784,970 in 2015). d) Workplace safety & insurance In 1996, in order to decrease workers' compensation expense, the City assumed the risk of workers' compensation coverage. The potential liability, based on an actuarial valuation update for all existing claims as at December 31, 2016 amounted to $2,390,979 ($2,229,853 in 2015). A self-insurance Reserve Fund for Workers' Compensation was established which, at December 31, 2016, amounted to $2,417,133 ($2,301,796 in 2015). Premiums which otherwise could be paid to Workplace Safety & Insurance Board are paid into the fund and workers' compensation claims are charged to the fund. 17

23 Notes to the Consolidated Financial Statements For the year ended December 31, Deferred revenue A requirement of the Public Sector Accounting Board, of the Chartered Professional Accountants of Canada, is that obligatory reserves be reported as deferred revenue. This requirement is in place as provincial legislation restricts how these funds may be used and under certain circumstances these funds may be refunded. Deferred revenue balances are as follows: Revenue Development charges and user fees $ 5,578,320 $ 5,417,449 Gas tax funding 3,853,543 3,670,041 Investment income 44,331 95,506 9,476,194 9,182,996 Deferred revenue recognized (7,713,063) (9,165,501) Change in deferred revenue 1,763,131 17,495 Deferred revenue, beginning of year 28,583,426 28,565,931 Deferred revenue, end of year 30,346,557 28,583,426 Represented as follows: Development charges 26,541,812 23,348,978 Recreational land (1,090,779) (1,012,045) Building permits 1,254, ,833 Gas tax funding 3,640,892 5,831,660 $ 30,346,557 $ 28,583, Long-term debt The City has assumed the responsibility for the payment of principal and interest charges on certain debt issued by the Region of Waterloo, which in fiscal 2016 amounted to $7,250,000. The City has assumed responsibility for the payment of principal and interest charges on certain long-term debt issued by the Region of Waterloo. At the end of the year, the total outstanding principal amount of this liability is $26,178,753 ($21,710,155 in 2015). This debt bears interest at rates ranging from 1.15% to 3.95% per annum. Principal repayments required over the next 5 years and thereafter are as follows: $ 3,521, ,596, ,678, ,766, ,578,000 Thereafter - 9,037,000 $ 26,178,753 Interest charges for fiscal 2016 relating to long-term debt were $591,671 ($429,798 in 2015). The City has enacted and passed by-laws in 2016 authorizing the issue of debentures, not to exceed $30.1 million, for the rehabilitation of existing assets and construction or purchase of new assets contained in the Capital Funding Program. 18

24 Notes to the Consolidated Financial Statements For the year ended December 31, Tangible capital assets 2016 Land Land Buildings Leasehold Infrastructure Information Machinery & Vehicles Total improvements improvements technology equipment Cost Balance, beginning of year $ 89,638,236 $ 70,868,465 $ 152,927,155 $ 4,438,819 $ 387,546,297 $ 4,914,102 $ 7,019,268 $ 18,143,394 $ 735,495,736 Additions 416,608 12,405, ,305-46,268, , ,199 1,013,011 61,731,413 Disposals - 142, , ,393 1,299,974 Cost, end of year 90,054,844 83,131, ,863,460 4,438, ,277,714 5,101,965 7,522,467 18,536, ,927,175 Accumulated amortization Balance, beginning of year - 33,733,227 61,685, , ,783,661 4,332,208 3,754,943 9,912, ,773,061 Disposals - 103, , ,393 1,170,178 Amortization expense - 2,671,059 3,552, ,492 11,845, , ,134 1,206,685 20,357,745 Accumulated amortization, end of year - 36,300,824 65,237, , ,182,671 4,729,478 4,294,077 10,498, ,960,628 Assets under construction ,703,985 Net book value, end of year $ 90,054,844 $ 46,831,070 $ 88,625,522 $ 3,721,644 $ 244,095,043 $ 372,487 $ 3,228,390 $ 8,037,547 $ 560,670, Land Land Buildings Leasehold Infrastructure Information Machinery & Vehicles Total (Restated Note 12) improvements improvements technology equipment Cost Balance, beginning of year $ 89,867,580 $ 68,767,814 $ 150,565,396 $ 4,118,819 $ 350,733,964 $ 4,232,062 $ 6,163,679 $ 16,288,057 $ 690,737,371 Additions 102,854 2,100,651 2,361, ,000 37,552,350 1,182,040 1,160,718 2,120,237 46,900,609 Disposals 332, , , , ,900 2,142,244 Cost, end of year 89,638,236 70,868, ,927,155 4,438, ,546,297 4,914,102 7,019,268 18,143, ,495,736 Accumulated amortization Balance, beginning of year - 31,997,169 58,178, , ,601,775 4,010,019 3,505,069 9,048, ,763,819 Disposals , , , ,905 1,775,626 Amortization expense - 1,736,058 3,507, ,159 8,887, , ,004 1,128,881 16,784,868 Accumulated amortization, end of year - 33,733,227 61,685, , ,783,661 4,332,208 3,754,943 9,912, ,773,061 Assets under construction ,971,709 Net book value, end of year $ 89,638,236 $ 37,135,238 $ 91,241,989 $ 3,867,136 $ 209,762,636 $ 581,894 $ 3,264,325 $ 8,231,221 $ 540,694,384 (a) During the year, roads and underground networks contributed to the City totalled $15,990,209 ($12,542,520 in 2015) and were capitalized at their fair value at the time of receipt. (b) Amortization expense for the year amounts to $20,357,745 ($16,784,868 in 2015). 19

25 Notes to the Consolidated Financial Statements For the year ended December 31, General insurance coverage In order to decrease insurance premiums, the City has undertaken a portion of the risk by taking deductibles. The deductibles generally range up to $50,000 depending on the types of claims. Insurance coverage is in place for claims in excess of these deductibles up to various policy limits. The City has made provision for a Reserve for Self-Insurance for various types of insurance, the balance of which at December 31, 2016 amounted to $2,265,718 ($2,199,878 in 2015), and is reported in Note 15 under Reserves. The City budgets annually for claims related to self-insurance and the difference between budgeted and actual claims during the year is drawn from the reserve fund. In 2016 the amount drawn from the reserve was $Nil ($Nil in 2015). Claims for all forms of self-insurance during the year amounting to $404,288 ($166,518 in 2015), including adjusters' fees and costs, are reported as an expenditure on the Consolidated Statement of Operations and Accumulated Surplus. The City has an agreement with members of the Waterloo Region municipalities to purchase property damage and public liability insurance on a group basis and share a retained level of risk. The members pay an annual levy to fund insurance coverage, losses, and contribute to a surplus. The pool has purchased insurance to fund losses above a pre-determined deductible and any losses above a pre-determined total in any year. 12. Restatement of prior year's accumulated surplus During 2016, management identified certain assets that were not previously recorded resulting in additions to the net book value of tangible capital assets in the amount of $5,104,750. The impact of these adjustments at January 1, 2015 is as follows: Accumulated surplus as at January 1, 2015 Accumulated surplus, previously stated $ 617,251,925 Tangible capital asset adjustment 5,104,750 Accumulated surplus, restated $ 622,356, Contingent liabilities The City is involved in several legal suits of varying dollar amounts, the outcome of which is not presently determinable. No provision for possible liability has been recorded in these financial statements. In the event the City is found liable, any amounts not recoverable from City's insurers will be adjusted against future revenues. 20

26 Notes to the Consolidated Financial Statements For the year ended December 31, Other explanatory notes (a) Expenses by object The total expenditures on the Consolidated Statement of Operations and Accumulated Surplus are summarized by object as follows: Salaries, wages, and employee benefits $ 72,784,183 $ 70,992,112 Materials and services 62,912,838 42,689,992 Grants to outside groups 2,251,805 2,001,562 Amortization 20,357,745 16,784,868 Rent, contracted services and other 18,621,151 34,132,358 Interest on long-term debt 591, ,798 $ 177,519,393 $ 167,030,690 (b) Budget figures, unaudited Budget figures reported on the Consolidated Statement of Operations and Accumulated Surplus are based on the 2016 municipal operating and water/wastewater budgets as approved by Council on January 5, 2016 and December 15, 2015 respectively, and include subsequent amendments. Approved budget figures have been reclassified and adjusted for the purposes of these financial statements to comply with Public Sector Accounting Board ("PSAB") reporting requirements. The chart below reconciles the approved operating budgets to the amended budget figures: Budget Amount Approved operating budget revenues $ 179,953,300 Budget amendments and reallocations PSAB reporting adjustments: Reallocate net revenues to expense (11,722,700) Dividends from Cambridge and North Dumfires Energy Plus Inc. (1,950,000) Provincial Offences Act adjustment 500,000 Land sales and other 1,363,832 Capital contributions from others 1,847,918 Contributions from reserves and reserve funds (5,726,300) Net operating budget revenues $ 164,266,050 Approved operating budget expenses $ 179,953,300 Budget amendments and reallocations PSAB reporting adjustments: Reallocate net revenues to expense (11,722,700) Amortizaion of tangible capital assets 20,357,745 Non-tangible capital asset expenditures 14,314,705 Contribution to others from reserves 167,143 Provincial Offences Act adjustment 500,000 Unfunded accrual for employee future benefit obligation 2,766,566 Contribution to reserves and reserve funds (21,969,100) Consolidated external agencies 64,787 Debt principal repayments (2,781,400) Net operating budget expenses 181,651,046 Net expenses before other income (17,384,996) 21

27 Notes to the Consolidated Financial Statements For the year ended December 31, Accumulated surplus Accumulated surplus consists of individual surpluses and reserves as follows: (Restated Note 12) Reserves Tax rates stabilization $ 2,988,205 $ 2,928,022 Training and development 1,256,856 1,255,082 Contaminated sites grant program 559, ,980 Building revitalization program 353, ,031 Transportation services 6,569,804 5,107,435 Environmental services 19,654,403 14,046,114 Planning and development 10,771,990 11,495,150 Infrastructure renewal 1,641,262 1,593,498 Health services 544, ,621 Replacement of equipment 4,867,384 4,780,729 Future employee benefits 10,121,707 9,677,873 Insurance 2,265,718 2,199,878 Workplace safety and insurance 2,417,133 2,301,796 Parking fund 24,080 23,587 General government 1,992,317 1,385,300 Winter maintenance 178, ,299 Recreation and cultural services 1,047, ,503 Other 3,198,680 4,010,379 Total reserves 70,453,271 63,302,277 Surpluses Invested in tangible capital assets 560,670, ,694,384 Invested in repair and replacement of assets 21,743,958 29,015,787 Invested in Government Business Enterprise 79,236,333 75,879,960 General revenue fund 209,288 60,184 Library board 4,083 6,789 Business improvements areas 73,704 64,787 Land held for resale 13,940,682 13,423,828 Amounts to be recovered Employee and post-employment benefits (63,403,532) (60,636,966) Long-term debt (26,178,753) (21,710,155) Total surplus 586,296, ,798,598 Accumulated surplus $ 656,749,566 $ 640,100,875 22

28 Notes to the Consolidated Financial Statements For the year ended December 31, Comparative Figures Certain of the prior year's comparative figures have been restated to conform to the current year's presentation. 17. Segmented information The City of Cambridge is a diversified municipal government institution that provides a wide range of services to its citizens, including fire, road, water distribution, sewer collection/conveyance, storm sewer, libraries, and community services. Segmented information has been prepared by major functional classification of activities provided, consistent with the Consolidated Statement of Operations and Accumulated Surplus and provincially legislated requirements. For each reported segment, revenues and expenses represent both amounts that are directly attributable to the segment and amounts that are allocated on a reasonable basis. The accounting policies used in these segments are consistent with those followed in the preparation of the consolidated financial statements as disclosed in Note 1. 23

29 Notes to the Consolidated Financial Statements For the year ended December 31, Segmented information - Continued For the year ended December 31, 2016 General Government Protection Services Transportation Services Environmental Services Health Services Social and Family Services Recreation and Cultural Services Planning and Development Revenue Taxation $ 20,451,340 $ 20,594,610 $ 12,611,422 $ 921,729 $ 406,445 $ 1,237,562 $ 20,400,920 $ 2,604,181 $ 79,228,209 User fees and charges 2,142,191 3,779,736 1,858,935 59,566, , ,200 4,838, ,846 74,180,057 Penalties and interest on taxes 2,957, ,957,433 Investment income 868, , ,517 Fines - 9, , ,481-1,080,487 Government transfers - Canada ,000-72,000 Government transfers - Ontario 262, , ,301-1,457,149 Deferred revenue earned 32, , , ,700 Land sales and other 29,527 1,543,816 25, , ,688-51,267 1,192,988 3,449,664 Total revenue 26,744,183 25,927,785 15,594,418 60,774,279 1,588,129 2,634,710 25,738,697 4,496, ,498,216 Operating expenses Salaries wages and employee benefits 17,321,197 21,823,591 8,263,858 5,368, ,718 1,709,693 15,086,148 2,248,460 72,784,183 Long term debt charges , , , ,671 Materials 11,321,255 2,561,088 8,975,542 27,849, , ,880 9,742,656 1,769,968 62,912,838 Contracted services 422, ,509 1,468,141 15,441,993-8, ,181 22,679 18,356,572 Rents and financial expenses 79, ,278 11,133 19, , ,579 External transfers 500, ,900 1,454,905-2,251,805 Amortization of tangible capital assets 804, ,930 6,346,113 9,278,563 79,248-3,393,577-20,357,745 Interfunctional adjustments (5,515,788) 217,852 (877,841) 5,573, , , Total expenses 24,932,219 25,452,248 24,298,127 63,714,869 1,363,943 2,507,508 31,186,689 4,063, ,519,393 Net income (expenses) before other income $ 1,811,964 $ 475,537 $ (8,703,709) $ (2,940,590) $ 224,186 $ 127,202 $ (5,447,992) $ 432,225 $ (14,021,177) Total 24

30 Notes to the Consolidated Financial Statements For the year ended December 31, Segmented information - Continued For the year ended December 31, 2015 (Restated Note 12) General Government Protection Services Transportation Services Environmental Services Health Services Social and Family Services Recreation and Cultural Services Planning and Development Revenue Taxation $ 20,900,354 $ 19,660,000 $ 12,039,100 $ 879,900 $ 388,000 $ 1,181,400 $ 19,475,100 $ 2,733,803 $ 77,257,657 User fees and charges 2,065,375 2,834,693 1,837,638 55,611, , ,346 4,629, ,655 68,909,763 Penalties and interest on taxes 3,090, ,090,288 Investment income 876, , ,577 Fines - 5,446 1,025, ,104-1,153,798 Government transfers - Canada ,000-72,000 Government transfers - Ontario 301, , ,996-1,499,141 Deferred revenue earned 38, , , , ,748 Land sales and other 271,778 7,399 99, , , ,925 1,336,758 3,414,026 Total revenue 27,544,886 23,239,907 15,145,114 57,418,060 1,617,763 2,605,291 24,989,761 4,657, ,217,998 Operating expenses Salaries wages and employee benefits 15,864,119 22,374,150 8,274,066 5,088, ,665 1,731,236 14,577,553 2,171,890 70,992,112 Long term debt charges ,181 82, , ,798 Materials 9,694,052 1,732,254 8,243,886 9,712, , ,901 11,033,467 1,521,994 42,689,992 Contracted services 347, , ,134 31,854,251-5, ,990 20,018 33,897,607 Rents and financial expenses 62, ,278-18, , ,751 External transfers 500, ,900 1,207,662-2,001,562 Amortization of tangible capital assets 1,305, ,813 5,699,289 5,775,406 85,667-3,418,334-16,784,868 Interfunctional adjustments (5,374,910) 215,814 (422,359) 4,953, , , Total expenses 22,398,367 25,156,955 22,609,197 57,485,116 1,345,081 2,556,984 31,743,288 3,735, ,030,690 Net income (expenses) before other income $ 5,146,519 $ (1,917,048) $ (7,464,083) $ (67,056) $ 272,682 $ 48,307 $ (6,753,527) $ 921,514 $ (9,812,692) Total 25

31 Trust Funds Financial Statements Year Ended December 31,

32 INDEPENDENT AUDITORS' REPORT To the Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Cambridge We have audited the accompanying financial statements of the Trust Funds of The Corporation of the City of Cambridge, which comprise the statement of financial position as at December 31, 2016, and the statement of continuity for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust Funds of The Corporation of the City of Cambridge as at December 31, 2016, and the continuity of Trust Funds for the year then ended in accordance with Canadian public sector accounting standards. Cambridge, Ontario May 16, 2017 Chartered Professional Accountants, authorized to practise public accounting by the Chartered Professional Accountants of Ontario 27

33 Trust Funds Financial Position As at December 31, Assets Liabilities Cash and term deposits $ 4,680,599 $ 1,055,781 Receivable from Revenue Fund 601,662-5,282,261 1,055,781 Investments (Note 2) Provincial 140, ,943 Municipal 81, ,070 Other 5,073,880 8,690,925 5,295,938 9,080,938 10,578,199 10,136,719 Payable to Revenue Fund Fund balances 10,578,199 10,136,413 $ 10,578,199 $ 10,136,719 The explanatory financial notes form an integral part of these financial statements 28

34 Trust Funds Statement of Continuity For the year ended December 31, 2016 Cemetery Care and Maintenance Fund Cemetery Care and Maintenance Monuments Cemetery Charges Prepaid Election Surplus Balance at the beginning of the year $ 5,198,740 $ 512,576 $ 2,912,791 $ 3,858 Receipts Sale of land 289, ,197 Contributions received 18,100 Interest earned 139,813 13,724 77, ,352 31, , Expenditures Contributions to Revenue Fund 139,814 13, ,213 Transfer to other 139,814 13, ,213 Balance at the end of the year $ 5,488,278 $ 530,675 $ 2,998,048 $ 3,960 The explanatory financial notes form an integral part of these financial statements 29

35 Trust Funds Statement of Continuity For the year ended December 31, 2016 Archives Trust Arthur White Arthur White Bernice Adams Fund Scholarship Fund Sports Bursary Memorial Fund Balance at the beginning of the year $ 27,158 $ 15,084 $ 82,776 $ 62,293 Receipts Sale of land Contributions received 3,060 Interest earned ,189 1, ,189 4,698 Expenditures Contributions to Revenue Fund Transfer to other , ,400 Balance at the end of the year $ 27,879 $ 15,080 $ 84,525 $ 64,591 The explanatory financial notes form an integral part of these financial statements 30

36 Trust Funds Statement of Continuity For the year ended December 31, 2016 C.I.T.C. Training Cambridge C.I.T.C. Mayors Award Heritage River Trail Library Donation Trust Balance at the beginning of the year $ 15,570 $ 5,049 $ 66,824 $ 492,807 Receipts Sale of land Contributions received 9,729 Interest earned ,772 13, ,772 22,809 Expenditures Contributions to Revenue Fund 15,754 Transfer to other 15,754 Balance at the end of the year $ 15,983 $ 5,183 $ 68,596 $ 499,862 The explanatory financial notes form an integral part of these financial statements 31

37 Trust Funds Statement of Continuity For the year ended December 31, 2016 Library Art Natural Heritage Trans Canada Scott Thompson Acquisition Trust Fund Trail Pavilion Athletic Fund Balance at the beginning of the year $ 331,179 $ 19,085 $ 10,572 $ 36,240 Receipts Sale of land Contributions received 25,270 Interest earned 8, , Expenditures Contributions to Revenue Fund Transfer to other 37,573 1,058 37,573 1,058 Balance at the end of the year $ 327,253 $ 19,592 $ 10,852 $ 36,131 The explanatory financial notes form an integral part of these financial statements 32

38 Trust Funds Statement of Continuity For the year ended December 31, 2016 School of Architecture Ancient Mariners Allan Reuter Prepaid Rent Bursary Canoe Club Fund Centre Renovation Balance at the beginning of the year $ 9,182 $ 49,151 $ 15,442 $ 17,630 Receipts Sale of land Contributions received 8,761 10,000 Interest earned 244 1, ,303 9,279 10,695 Expenditures Contributions to Revenue Fund Transfer to other 2,568 2,568 Balance at the end of the year $ 9,426 $ 50,454 $ 24,721 $ 25,757 The explanatory financial notes form an integral part of these financial statements 33

39 Trust Funds Statement of Continuity For the year ended December 31, 2016 Fiddlesticks Bill Struck Neighbourhood Cambridge Lions Can-Amera Memorial Fund Association Rowing Club Sports Bursary Balance at the beginning of the year $ 5,586 $ 93,382 $ 1,356 $ 75,185 Receipts Sale of land Contributions received Interest earned 146 2, , , ,974 Expenditures Contributions to Revenue Fund Transfer to other 161 2, ,196 Balance at the end of the year $ 5,571 $ 95,857 $ 1,393 $ 74,963 The explanatory financial notes form an integral part of these financial statements 34

40 Trust Funds Statement of Continuity For the year ended December 31, 2016 David Durward Centre G.E. (Ted) Wake Lounge Seniors Fund Horticulture Fund Arts Guild Improvement Balance at the beginning of the year $ 32,512 $ 2,720 $ 12,281 $ 20,416 Receipts Sale of land Contributions received 8,000 11,000 Interest earned , ,611 Expenditures Contributions to Revenue Fund Transfer to other 4,088 1,000 4,088 1,000 Balance at the end of the year $ 37,419 $ 2,791 $ 12,607 $ 31,027 The explanatory financial notes form an integral part of these financial statements 35

41 Trust Funds Statement of Continuity For the year ended December 31, 2016 Arts Connect Cambridge Arts Guild Total Balance at the beginning of the year 8,968 $ 10,136,413 Receipts Sale of land 412,736 Contributions received 25, ,920 Interest earned , , ,907 Expenditures Contributions to Revenue Fund 284,506 Transfer to other 24,731 76,615 24, ,121 Balance at the end of the year 9, $ 10,578,199 The explanatory financial notes form an integral part of these financial statements 36

42 Notes to the Trust Funds Financial Statements For the year ended December 31, Accounting Policies The financial statements of the Trust Funds of the Corporation of the City of Cambridge are the representation of management prepared in accordance with Canadian generally accepted accounting principles as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. (a) Basis of Accounting Capital receipts and income are reported on the cash basis of accounting. Expenditures are reported on the cash basis of accounting with the exception of administrative expenses, which are reported on the accrual basis of accounting, which recognizes expenditures, as they are incurred and measurable as a result of the receipt of goods or services and the creation of a legal obligation to pay. The Trust Funds have acquired no 'tangible capital assets' as defined by Section 3150 of the Chartered Professional Accountants of Canada Public Sector Accounting Handbook. (b) 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 year. These estimates and assumptions are based on management's best information and judgment and may differ significantly from future actual results. 2. Investments Investments, comprised of municipal and provincial bonds and bank term deposits with varying maturity dates, bear interest at rates ranging from 1.03% to 7.0%, are reported at cost amounting to $5,295,938 ($9,080,938 in 2015), and have a market value of $5,327,331 ($9,143,394 in 2015). 37

43 2016 Financial Information Return 38

44 6Province of Ontario - Ministry of Municipal Affairs : V FINANCIAL INFORMATION RETURN Municipality: Cambridge C MSO Office: Western Ontario Tier: Lower-Tier Asmt Code: 3006 Area: Waterloo R MAH Code: DECLARATION OF THE MUNICIPAL TREASURER Pursuant to the information required by the Province of Ontario under the Municipal Affairs Act, the following schedules are attached: Submitting: FIR Schedules Only Version: 2016-V1.03 Schedule Title Completion 10 CONSOLIDATED STATEMENT OF OPERATIONS: REVENUE 12 GRANTS, USER FEES AND SERVICE CHARGES 20 TAXATION INFORMATION 22 MUNICIPAL AND SCHOOL BOARD TAXATION 24 PAYMENTS-IN-LIEU OF TAXATION 26 TAXATION AND PAYMENTS-IN-LIEU SUMMARY 28 UPPER-TIER ENTITLEMENTS UPPER-TIER ONLY 40 CONSOLIDATED STATEMENT OF OPERATIONS: EXPENSES 42 ADDITIONAL INFORMATION 51 SCHEDULE OF TANGIBLE CAPITAL ASSETS 53 CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) AND TANGIBLE CAPITAL ASSET ACQUISITION FINANCING/DONATIONS 54 CONSOLIDATED STATEMENT OF CASH FLOW (SELECT DIRECT OR INDIRECT METHOD) 60 CONTINUITY OF RESERVES AND RESERVE FUNDS 61 DEVELOPMENT CHARGES RESERVE FUNDS 62 DEVELOPMENT CHARGES RATES (INCLUDING SPECIAL AREAS) 70 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 72 CONTINUITY OF TAXES RECEIVABLE SINGLE/LOWER-TIER ONLY 74 LONG TERM LIABILITIES AND COMMITMENTS 76 GOVERNMENT BUSINESS ENTERPRISES (GBE) 77 OTHER ENTITIES (DSSAB, HEALTH UNIT, OTHER AND TOTAL ALL) 79 COMMUNITY IMPROVEMENT PLANS 80 STATISTICAL INFORMATION 81 ANNUAL DEBT REPAYMENT LIMIT 83 NOTES For the purposes of this Financial Information Return, the amounts disclosed on the attached schedules are in agreement with the books and records of the municipality and its consolidated entities. This Financial Information Return has been prepared in accordance with the Financial Information Return instructions. Questions regarding the information contained in the Schedules should be addressed to: 0020 Name Mirna Raponi 0022 Telephone x Fax (Required) raponim@cambridge.ca 0030 Website address of Municipality Municipal Auditor Peter Graham & Mike Arndt 0092 Municipal Audit Firm Graham Matthew Professional Corporation 0095 Municipal Auditor's (Required) marndt@gmpca.com 0090 Municipal Treasurer Steven Fairweather 0093 Municipal Treasurer's (Required) fairweathers@cambridge.ca 0094 Date /9/2017 Signature of Municipal Treasurer Signature May 17, 2017 Date 0070 Outstanding In-Year Critical Errors Schedule 54: Cashflow - Direct or Indirect Method Chosen INDIRECT 0077 Method used to allocate Program Support to other functions in Schedule Percentage of Total Expenditures 0078 If "Other Method" is selected in line 0077, please describe method of allocating Program Support Municipal Data 1 Data Source 2 Municipal Data (#) (List) 0040 Households ,400 Municipal 0041 Population ,900 Municipal 0042 Youth Population ,395 Stats Can 39

45 CProvince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 10 Asmt Code: 3006 CONSOLIDATED STATEMENT OF OPERATIONS: REVENUE MAH Code: for the year ended December 31, 2016 STATEMENT OF OPERATIONS: REVENUE Own Purposes Revenue 1 Property Taxation $ 0299 Taxation - Own Purposes (SLC ) For UT (SLC ) ,785, Payments-In-Lieu of Taxation (SLC ) For UT (SLC ) , Subtotal 79,228, Estimated tax revenue Ontario Municipal Partnership Fund (OMPF) , Other Other Other Other Subtotal 256,400 Conditional Grants 0810 Ontario conditional grants (SLC ) ,200, Ontario Grants for Tangible Capital Assets (SLC ) Canada conditional grants (SLC ) , Canada Grants for Tangible Capital Assets (SLC ) , Deferred revenue earned (Provincial Gas Tax) (SLC SLC ) Deferred revenue earned (Canada Gas Tax) (SLC ) ,083, Subtotal 7,400, Revenue from other municipalities for Tangible Capital Assets (SLC ) Revenue from other municipalities (SLC ) ,850, Total User Fees and Service Charges (SLC ) ,804,855 Licences, permits, rents, etc Trailer revenue and permits , Licences and permits ,424, Rents, concessions and franchises , Royalties Green Energy Other Subtotal 3,645,587 Fines and penalties 1605 Provincial Offences Act (POA) Municipality which administers POA only Other fines , Penalties and interest on taxes ,957, Other Subtotal 3,083,536 Other revenue 1805 Investment income , Interest earned on reserves and reserve funds ,210, Gain/Loss on sale of land & capital assets , Deferred revenue earned (Development Charges) (SLC SLC ) ,569, Deferred revenue earned (Recreational land (The Planning Act)) (SLC SLC ) , Other Deferred revenue earned Donations Donated Tangible Capital Assets (SLC ) ,990, Sale of publications, equipment, etc ,413, Contributions from non-consolidated entities ,847, Other Revenues from Government Business Enterprise (ie. Dividends, etc.) ,547, Gaming and Casino Revenues Other Other Other Other Other Other Other Other Other Subtotal 25,542, Municipal Land Transfer Tax (City of Toronto Act, 2006) Increase/Decrease in Government Business Enterprise equity ,356, TOTAL Revenues 194,168,084 40

46 CProvince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 10 Asmt Code: 3006 CONSOLIDATED STATEMENT OF OPERATIONS: REVENUE MAH Code: for the year ended December 31, 2016 Continuity of Accumulated Surplus/(Deficit) 1 $ 2010 PLUS: Total Revenues (SLC ) ,168, LESS: Total Expenses (SLC ) ,519, PLUS: PLUS: PLUS: PSAB Adjustments Annual Surplus/(Deficit) ,648, Accumulated surplus/(deficit) at the beginning of year ,157, Prior period adjustments ,943, Restated accumulated surplus/(deficit) at the beginning of year ,100, Accumulated surplus/(deficit) at the end of year (SLC SLC ) ,749,566 Continuity of Government Business Enterprise Equity 6010 Government Business Enterprise Equity, beginning of year ,879, PLUS: Net Income for Government Business Enterprise for year ,356, PLUS: Government Business Enterprise Equity, end of year ,236,333 1 $ Total of line 0899 includes: Provincial Gas Tax Funding 4018 Provincial Gas Tax for Transit operating expenses Provincial Gas Tax for Transit capital expenses Provincial Gas Tax $ Total of line 0899 includes: Canada Gas Tax Funding 4025 General Government ,612 Transportation Services: 4030 Roads - Paved ,077, Roads - Unpaved Roads - Bridges and Culverts Roadways - Traffic Operations & Roadside Transit - Conventional Transit - Disabled & special needs Air transportation Other Environmental Services: 4060 Wastewater collection/conveyance , Wastewater treatment & disposal Urban storm sewer system ,615, Rural storm sewer system Water treatment Water distribution/transmission , Solid waste collection Solid waste disposal Waste diversion Other Recreation Facilities - All Other , Cultural services Commercial and industrial Canada Gas Tax 6,083,795 1 $ 41

47 1Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 12 Asmt Code: 3006 GRANTS, USER FEES AND SERVICE CHARGES MAH Code: for the year ended December 31, 2016 Ontario Conditional Grants Canada Conditional Grants Other Municipalities User Fees and Service Charges Ontario Grants - Tangible Capital Assets Canada Grants - Tangible Capital Assets Other Municipalities - Tangible Capital Assets $ $ $ $ $ $ $ 0299 General government ,714,938 Protection services 0410 Fire , , Police Court Security Prisoner Transportation Conservation authority Protective inspection and control , Building permit and inspection services , Emergency measures Provincial Offences Act (POA) , Other Subtotal 0 0 1,504, , Transportation services 0611 Roads - Paved ,286, , Roads - Unpaved Roads - Bridges and Culverts Roads - Traffic Operations & Roadside Winter Control - Except sidewalks, Parking Lots Winter Control - Sidewalks, Parking Lots Only Transit - Conventional Transit - Disabled & special needs Parking , Street lighting , Air transportation Other Subtotal 0 0 1,286, , Environmental services 0811 Wastewater collection/conveyance ,241, Wastewater treatment & disposal Urban storm sewer system Rural storm sewer system Water treatment Water distribution/transmission ,550 31,264, Solid waste collection Solid waste disposal Waste diversion Other Subtotal ,550 59,506, Health services 1010 Public health services Hospitals Ambulance services Ambulance dispatch Cemeteries , Other Subtotal , Social and family services 1210 General assistance Assistance to aged persons , , Child care Other Social Planning ,500 20, Subtotal 956, , Social Housing 1410 Public Housing Non - Profit/Cooperative Housing Rent Supplement Programs Other Other Subtotal Recreation and cultural services 1610 Parks , Recreation programs , Recreation facilities - Golf Course, Marina, Ski Hill Recreation facilities - All Other ,529,755 43, Libraries , , Museums Cultural services ,500 72, , Other Subtotal 244,301 72, ,839, ,557 0 Planning and development 1810 Planning and zoning , Commercial and industrial , Residential development Agriculture and reforestation Tile drainage/shoreline assistance Other Subtotal , Other TOTAL 1,200,749 72,000 2,850,311 68,804, ,

48 SProvince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 20 Asmt Code: 3006 TAXATION INFORMATION MAH Code: for the year ended December 31, 2016 General Information 1. Optional Property Classes in Effect 2 Y or N 0202 N New Multi-Residential Y 0205 G Parking Lot (Includes CJ, CR, CX, CY, CZ) Y 0210 D Office Building Y 0215 S Shopping Centre Y 0220 L Large Industrial Y 0225 Other N 2. Capping Parameters and Results Decrease - Percentage Retained Tax Adjustment - Increasers Net Class Impact Annualized Tax Limit CVA Tax Limit CVA Threshold Value for Protected Properties CVA Threshold Value for Clawed Back Properties Exclude Properties Previously at CVA Tax Exclude Properties that go from Capped to Clawed Back % $ $ % % $ $ Y or N Y or N Y or N 0320 M Multi-Residential % -8, % 500 N N N 0330 C Commercial % 11, % 500 N N N 0340 I Industrial % 20, % 500 N N N Exclude Properties that go from Clawed Back to Capped Grad. Tax Rates in Effect? Number of Tax Bands CVA Boundary Low Band % of Highest Band Rate CVA Boundary Middle Band % of Highest Band Rate 3. Graduated Taxation (Tax Bands) Y or N # $ % $ % 0610 C Commercial N 0611 G Parking Lot N 0612 D Office Building N 0613 S Shopping Centre N 0620 I Industrial N 0621 L Large Industrial N Phase-In Program in Effect? Year Current Phase- In Initiated Term of Current Phase-In 4. Phase-In Program in Effect (Most recent Phase-In only) Y or N Year # of Yrs 0805 R Residential N 0810 M Multi-Residential N 0815 N New Multi-Residential N 0820 C Commercial (Includes G, D, S) N 0840 I Industrial (Includes L) N 0850 F Farmland N 0855 T Managed Forest N 0860 P Pipeline N 5. Rebates for Eligible Charities 2 % 1010 Rebate Percentage for Eligible Charities (SLC xx) % INTERIM Billing Installments FINAL Billing Installments 6. Property Tax Due Dates for Current Year Installments First Due Date Last Due Date Installments First Due Date Last Due Date To be completed by Single/Lower-tier Municipalities Only # YYYYMMDD YYYYMMDD # YYYYMMDD YYYYMMDD 1210 R Residential M Multi-Residential F Farmland T Managed Forest C Commercial I Industrial P Pipeline Other

49 2016 FinaProvince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 22 Asmt Code: 3006 MUNICIPAL and SCHOOL BOARD TAXATION MAH Code: for the year ended December 31, GENERAL PURPOSE LEVY INFORMATION Phase-In Taxable Assessment LT/ST Taxes UT Taxes Education Taxes TOTAL 9299 TOTAL ,085,999, ,651,304 90,377,141 65,587, ,616,281 Property Tax Rate Percent of CVA Phase-In Tax Rates Municipal Taxes Education RTC Tax RTQ Band Class Description Tax Ratio Full Rate Assessment Taxable Assessment LT / ST UT EDUC TOTAL LT / ST UT Taxes TOTAL LIST LIST % $ $ 0.xxxxxx% 0.xxxxxx% 0.xxxxxx% 0.xxxxxx% $ $ $ $ Cambridge C 0010 RT 0 Residential Full Occupied % 11,324,219,584 11,324,219, % % % % 48,458,600 55,683,000 21,289, ,431, R1 0 Residential Farm. Awaiting Devel. - Ph I % 586, , % % % % 1,128 1, , MT 0 Multi-Residential Full Occupied % 507,922, ,922, % % % % 4,238,307 4,870, ,894 10,063, M1 0 Multi-Residential Farm. Awaiting Devel. - Ph I % 1,179,000 1,179, % % % % 2,270 2, , NT 0 New Multi-Residential Full Occupied % 147,224, ,224, % % % % 630, , ,783 1,630, FT 0 Farmland Full Occupied % 33,268,400 33,268, % % % % 35,591 40,897 15,636 92, TT 0 Managed Forest Full Occupied % 1,759,000 1,759, % % % % 1,882 2, , CT 0 Commercial Full Occupied % 1,335,113,854 1,335,113, % % % % 11,140,724 12,801,699 18,691,594 42,634, CH 0 Commercial Full Occupied, Shared PIL % 3,809,000 3,809, % % % % 31,784 36,522 53, , CU 0 Commercial Excess Land % 26,268,125 26,268, % % % % 153, , , , CX 0 Commercial Vacant Land % 19,669,600 19,669, % % % % 114, , , , GT 0 Parking Lot Full Occupied % 6,956,610 6,956, % % % % 58,049 66,703 97, , DT 0 Office Building Full Occupied % 39,517,460 39,517, % % % % 329, , ,244 1,261, ST 0 Shopping Centre Full Occupied % 510,140, ,140, % % % % 4,256,820 4,891,471 7,141,972 16,290, SU 0 Shopping Centre Excess Land % 396, , % % % % 2,313 2,658 3,881 8, IT 0 Industrial Full Occupied % 442,252, ,252, % % % % 3,690,335 4,240,529 6,633,794 14,564, IH 0 Industrial Full Occupied, Shared PIL % 1,728,600 1,728, % % % % 14,424 16,575 25,929 56, IU 0 Industrial Excess Land % 8,320,095 8,320, % % % % 48,599 55,844 87, , IK 0 Industrial Excess Land, Shared PIL % 2,096,000 2,096, % % % % 12,243 14,068 22,008 48, IX 0 Industrial Vacant Land % 24,281,650 24,281, % % % % 141, , , , LT 0 Large Industrial Full Occupied % 332,567, ,567, % % % % 2,775,073 3,188,809 4,988,506 10,952, LU 0 Large Industrial Excess Land % 5,210,348 5,210, % % % % 30,434 34,971 54, , PT 0 Pipeline Full Occupied % 28,211,000 28,211, % % % % 140, , , , JT 0 Industrial, NConstr. Full Occupied % 45,801,588 45,801, % % % % 382, , ,459 1,361, JU 0 Industrial, NConstr. Excess Land % 1,071,412 1,071, % % % % 6,258 7,191 8,850 22, XT 0 Commercial, NConstr. Full Occupied % 195,181, ,181, % % % % 1,628,669 1,871,488 2,303,137 5,803, XU 0 Commercial, NConstr. Excess Land % 7,425,389 7,425, % % % % 43,372 49,839 61, , YT 0 Office Build., NConstr. Full Occupied % 9,047,680 9,047, % % % % 75,497 86, , , ZT 0 Shopp. Centre, NConstr. Full Occupied % 24,741,680 24,741, % % % % 206, , , , ZU 0 Shopp. Centre, NConstr. Excess Land % 32,000 32, % % % % Subtotal 15,085,999,191 15,085,999,191 78,651,304 90,377,141 65,587, ,616,281 44

50 ma Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 22 Asmt Code: 3006 MUNICIPAL and SCHOOL BOARD TAXATION MAH Code: for the year ended December 31, UPPER-TIER SPECIAL AREA LEVY INFORMATION LT/ST Taxes UT Taxes Education Taxes TOTAL 9699 TOTAL ,400,394 22,400,394 Property Tax Rate Percent of CVA Phase-In Tax Rates Municipal Taxes Education RTC Tax RTQ Band Class Description Tax Ratio Full Rate Assessment Taxable Assessment LT / ST UT EDUC TOTAL LT / ST UT Taxes TOTAL LIST LIST % $ $ 0.xxxxxx% 0.xxxxxx% 0.xxxxxx% 0.xxxxxx% $ $ $ $ Transit 0010 RT 0 Residential Full Occupied % 11,324,219,584 11,324,219, % % 13,801,279 13,801, R1 0 Residential Farm. Awaiting Devel. - Ph I % 586, , % % MT 0 Multi-Residential Full Occupied % 507,922, ,922, % % 1,207,103 1,207, M1 0 Multi-Residential Farm. Awaiting Devel. - Ph I % 1,179,000 1,179, % % NT 0 New Multi-Residential Full Occupied % 147,224, ,224, % % 179, , FT 0 Farmland Full Occupied % 33,268,400 33,268, % % 10,137 10, TT 0 Managed Forest Full Occupied % 1,759,000 1,759, % % CT 0 Commercial Full Occupied % 1,335,113,854 1,335,113, % % 3,172,965 3,172, CH 0 Commercial Full Occupied, Shared PIL % 3,809,000 3,809, % % 9,052 9, CU 0 Commercial Excess Land % 26,268,125 26,268, % % 43,699 43, CX 0 Commercial Vacant Land % 19,669,600 19,669, % % 32,722 32, GT 0 Parking Lot Full Occupied % 6,956,610 6,956, % % 16,533 16, DT 0 Office Building Full Occupied % 39,517,460 39,517, % % 93,915 93, ST 0 Shopping Centre Full Occupied % 510,140, ,140, % % 1,212,375 1,212, SU 0 Shopping Centre Excess Land % 396, , % % IT 0 Industrial Full Occupied % 442,252, ,252, % % 1,051,036 1,051, IH 0 Industrial Full Occupied, Shared PIL % 1,728,600 1,728, % % 4,108 4, IU 0 Industrial Excess Land % 8,320,095 8,320, % % 13,841 13, IK 0 Industrial Excess Land, Shared PIL % 2,096,000 2,096, % % 3,487 3, IX 0 Industrial Vacant Land % 24,281,650 24,281, % % 40,394 40, LT 0 Large Industrial Full Occupied % 332,567, ,567, % % 790, , LU 0 Large Industrial Excess Land % 5,210,348 5,210, % % 8,668 8, PT 0 Pipeline Full Occupied % 28,211,000 28,211, % % 39,928 39, JT 0 Industrial, NConstr. Full Occupied % 45,801,588 45,801, % % 108, , JU 0 Industrial, NConstr. Excess Land % 1,071,412 1,071, % % 1,782 1, XT 0 Commercial, NConstr. Full Occupied % 195,181, ,181, % % 463, , XU 0 Commercial, NConstr. Excess Land % 7,425,389 7,425, % % 12,353 12, YT 0 Office Build., NConstr. Full Occupied % 9,047,680 9,047, % % 21,502 21, ZT 0 Shopp. Centre, NConstr Full Occupied % 24,741,680 24,741, % % 58,800 58, ZU 0 Shopp. Centre, NConstr Excess Land % 32,000 32, % % Subtotal 15,085,999,191 15,085,999,191 22,400,394 22,400,394 45

51 ch Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 22 Asmt Code: 3006 MUNICIPAL and SCHOOL BOARD TAXATION MAH Code: for the year ended December 31, 2016 Municipal Taxes Education LT / ST UT Taxes TOTAL 4. ADJUSTMENTS TO TAXATION $ $ $ $ 7010 Adjustments for properties, shared as if Payment-In-Lieu (Hydro properties RTQ = H, J, K) , , SUPPLEMENTARY TAXES 9799 Total of all supplementary taxes (Supps, Omits, Section 359) ,090 1,094, ,979 2,393, AMOUNT LEVIED BY TAX RATE 9910 TOTAL Levied by Tax Rate 79,514, ,871,989 66,023, ,410, AMOUNTS ADDED TO TAX BILL 8005 Local improvements ,283 37, Sewer and water service charges Sewer and water connection charges Fire service charges Minimum tax (differential only) Municipal drainage charges Waste management collection charges Business improvement area , , Other Subtotal 300, , OTHER TAXATION AMOUNTS 8045 Railway rights-of-way (RTC = W) Utility transmission and utility corridors (RTC = U) Other Subtotal TOTAL AMOUNT LEVIED 9990 TOTAL Levies 79,814, ,871,989 66,023, ,710,

52 of Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 24 Asmt Code: 3006 PAYMENTS-IN-LIEU of TAXATION MAH Code: for the year ended December 31, GENERAL PURPOSE PAYMENTS-IN-LIEU PIL Phased-In Assessment LT/ST PILS UT PILS Education PILS TOTAL 9299 TOTAL ,266, , , ,656 1,151,244 Property Tax Rate Percent of PIL CVA PIL Phased-In Tax Rates Municipal PILS Education RTC Tax Class Description Tax Ratio Full Rate Assessment Assessment LT / ST UT EDUC TOTAL LT / ST UT PILS TOTAL RTQ Band LIST LIST % $ $ 0.xxxxxx% 0.xxxxxx% 0.xxxxxx% 0.xxxxxx% $ $ $ $ Cambridge C 1015 RP 0 Residential PIL: Full Occupied, Taxable Tenant of Province % 876, , % % % % 3,752 4,311 1,648 9, RG 0 Residential PIL: 'General' Only (No Educ.) % 669, , % % % % 2,864 3, , FP 0 Farmland PIL: Full Occupied, Taxable Tenant of Province % 5,066,200 5,066, % % % % 5,420 6,228 2,381 14, CF 0 Commercial PIL: Full Occupied % 29,322,325 29,322, % % % % 244, , , , CG 0 Commercial PIL: 'General' Only (No Educ.) % 2,326,000 2,326, % % % % 19,409 22, , CW 0 Commercial PIL: Excess Land, 'General' Only % 693, , % % % % 4,048 4, , CZ 0 Commercial PIL: Vacant Land, 'General' Only % 133, , % % % % , GF 0 Parking Lot PIL: Full Occupied % 4,151,000 4,151, % % % % 34,638 39,802 58, , IZ 0 Industrial PIL: Vacant Land, 'General' Only % 28,500 28, % % % % Subtotal 43,266,925 43,266, , , ,656 1,151,244 47

53 on Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 24 Asmt Code: 3006 PAYMENTS-IN-LIEU of TAXATION MAH Code: for the year ended December 31, UPPER-TIER SPECIAL AREA PAYMENTS-IN-LIEU INFORMATION LT/ST PILS UT PILS Education PILS TOTAL 9699 TOTAL ,931 89,931 Property Tax Rate Percent of PIL CVA PIL Phased-In Tax Rates Municipal PILS Education RTC Tax Class Description Tax Ratio Full Rate Assessment Assessment LT / ST UT EDUC TOTAL LT / ST UT PILS TOTAL RTQ Band LIST LIST % $ $ 0.xxxxxx% 0.xxxxxx% 0.xxxxxx% 0.xxxxxx% $ $ $ $ Transit 1015 RP 0 Residential PIL: Full Occupied, Taxable Tenan % 876, , % % 1,069 1, RG 0 Residential PIL: 'General' Only (No Educ.) % 669, , % % FP 0 Farmland PIL: Full Occupied, Taxable Tenan % 5,066,200 5,066, % % 1,544 1, CF 0 Commercial PIL: Full Occupied % 29,322,325 29,322, % % 69,686 69, CG 0 Commercial PIL: 'General' Only (No Educ.) % 2,326,000 2,326, % % 5,528 5, CW 0 Commercial PIL: Excess Land, 'General' Only % 693, , % % 1,153 1, CZ 0 Commercial PIL: Vacant Land, 'General' Only % 133, , % % GF 0 Parking Lot PIL: Full Occupied % 4,151,000 4,151, % % 9,865 9, IZ 0 Industrial PIL: Vacant Land, 'General' Only % 28,500 28, % % Subtotal 43,266,925 43,266,925 89,931 89,931 48

54 eu Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 24 Asmt Code: 3006 PAYMENTS-IN-LIEU of TAXATION MAH Code: for the year ended December 31, 2016 Municipal PILS Education LT / ST UT PILS TOTAL 4. SUPPLEMENTARY PAYMENTS-IN-LIEU $ $ $ $ 9799 Total of all supplementary PILS (Supps, Omits, Section 444) PAYMENTS-IN-LIEU LEVIED BY TAX RATE 9910 TOTAL PILS Levied by Tax Rate 315, , ,656 1,241, AMOUNTS ADDED TO PAYMENTS-IN-LIEU 8005 Local improvements Sewer and water service charges Sewer and water connection charges Fire service charges Municipal drainage charges Waste management collection charges Business improvement area Other Subtotal OTHER PAYMENTS-IN-LIEU AMOUNTS 8045 Railway rights-of-way (RTC = W) - from Ontario Enterprises ,254 31,906 59, , Railway rights-of-way (RTC = W) - from Province Utility transmission and utility corridors (RTC = U) - from Ontario Enterprises ,884 11,247 40, Utility transmission and utility corridors (RTC = U) - from Province Institutional Payments - Heads and Beds (Mun. Act 323, 324) , , , Hydro-electric Power Dams - from Province Other Subtotal 126, ,179 59, , TOTAL PAYMENTS-IN-LIEU LEVIED 9990 TOTAL PILS Levied 442, , ,291 1,578,

55 2 Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 26 Asmt Code: 3006 TAXATION and PAYMENTS-IN-LIEU SUMMARY MAH Code: for the year ended December 31, Municipal and School Board Taxation TOTAL ENG - Public FRE - Public ENG - Separate FRE - Separate Other 9010 Legislated Percentage of Education Taxes distributed to each School Board (Applic. to Com, Ind, Pipelines) % % 0.459% % 1.149% 0.000% Taxable Asmt. Taxable Asmt. Phase-In Phase-In Municipal Taxes Distribution of Education Taxes in column 6 by School Board (CVA) (Wtd & Disc CVA) Taxable Asmt. (CVA) Taxable Asmt. (Wtd & Disc CVA) TOTAL Taxes LT / ST UT Education Taxes ENG - Public FRE - Public ENG - Separate FRE - Separate Other Property Class Group $ $ $ $ $ $ $ $ $ $ $ $ $ 0010 Residential ,324,805,584 11,324,483,284 11,324,805,584 11,324,483, ,235,654 48,459,728 69,485,897 21,290,029 16,084,180 18,015 5,029, , Multi-residential ,326,132 1,138,203, ,326,132 1,138,203,919 13,087,169 4,870,581 6,983,914 1,232,674 1,119, ,303 8, Farmland ,268,400 8,317,100 33,268,400 8,317, ,261 35,591 51,034 15,636 15, Managed Forests ,759, ,750 1,759, ,750 5,407 1,882 2, Subtotal 12,016,159,116 12,471,444,053 12,016,159,116 12,471,444, ,430,491 53,367,782 76,523,543 22,539,166 17,219,808 18,242 5,134, , Commercial ,384,860,579 2,673,604,560 1,384,860,579 2,673,604,560 47,414,378 11,440,835 16,404,990 19,568,553 14,335,335 89,820 4,918, , Commercial New Construction. 202,606, ,738, ,606, ,738,744 6,434,050 1,672,041 2,397,538 2,364,471 1,732,141 10, ,310 27, Parking Lot ,956,610 13,565,390 6,956,610 13,565, ,678 58,049 83,236 97,393 71, ,480 1, Office Building ,517,460 77,059,047 39,517,460 77,059,047 1,355, , , , ,290 2, ,058 6, Office Building New Constructio 9,047,680 17,642,976 9,047,680 17,642, ,515 75, , ,763 78, ,835 1, Shopping Centre ,536, ,315, ,536, ,315,281 17,512,149 4,259,133 6,107,163 7,145,853 5,234,838 32,799 1,796,110 82, Shopping Centre New Construc 24,773,680 48,289,956 24,773,680 48,289, , , , , ,069 1,341 73,448 3, Subtotal 2,178,299,365 4,216,215,954 2,178,299,365 4,216,215,954 74,040,750 18,041,945 25,870,312 30,128,493 22,071, ,290 7,572, , Industrial ,679, ,126, ,679, ,126,441 16,534,341 3,907,433 5,602,859 7,024,049 5,145,608 32,240 1,765,495 80, Industrial New Construction.. 46,873,000 90,775,574 46,873,000 90,775,574 1,494, , , , ,407 2, ,069 6, Large Industrial ,777, ,617, ,777, ,617,910 11,871,532 2,805,507 4,022,810 5,043,215 3,694,508 23,148 1,267,612 57, Large Industrial New Constructi Subtotal 863,329,710 1,659,519, ,329,710 1,659,519,924 29,900,617 7,101,385 10,182,659 12,616,573 9,242,523 57,910 3,171, , Pipelines ,211,000 32,761,434 28,211,000 32,761, , , , , ,411 1,394 76,311 3, Other Property Classes Adj. for shared PIL properties , ,263-74, ,452-1, Supplementary Taxes ,393, ,090 1,094, , ,991 1,218 85,490 3, Total Levied by Rate 259,410,198 79,514, ,871,989 66,023,552 49,128, ,588 16,014, , Amts Added to Tax Bill , , Other Taxation Amounts TOTAL before Adj. 15,085,999,191 18,379,941,366 15,085,999,191 18,379,941, ,710,383 79,814, ,871,989 66,023,552 49,128, ,588 16,014, , Payments-In-Lieu of Taxation PIL Asmt. PIL Asmt. Phase-In Phase-In Municipal PILS (CVA) (Wtd & Disc CVA) PIL Asmt. PIL Asmt. Total PILS Levied Education PILS LT / ST UT (CVA) (Wtd & Disc CVA) Property Class Group $ $ $ $ $ $ $ $ 1010 Residential ,546,000 1,546,000 1,546,000 1,546,000 17,751 6,616 9,487 1, Multi-residential Farmland ,066,200 1,266,550 5,066,200 1,266,550 15,573 5,420 7,772 2, Managed Forests Subtotal 6,612,200 2,812,550 6,612,200 2,812,550 33,324 12,036 17,259 4, Commercial ,475,225 62,842,952 32,475,225 62,842,952 1,065, , , , Commercial New Construction Parking Lot ,151,000 8,094,450 4,151,000 8,094, ,419 34,638 49,667 58, Office Building Office Building New Constructio Shopping Centre Part 3 contains Distribution of PILS by School Boards 1345 Shopping Centre New Construc Subtotal 36,626,225 70,937,402 36,626,225 70,937,402 1,207, , , , Industrial ,500 38,903 28,500 38, Industrial New Construction Large Industrial Large Industrial New Constructi Subtotal 28,500 38,903 28,500 38, Pipelines Other Property Classes Supplementary PILS Total Levied by Rate 1,241, , , , Amts Added to PILs Other PIL Amounts , , ,179 59, TOTAL before Adj. 43,266,925 73,788,855 43,266,925 73,788,855 1,578, , , ,291 50

56 2 Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 26 Asmt Code: 3006 TAXATION and PAYMENTS-IN-LIEU SUMMARY MAH Code: for the year ended December 31, Payments-In-Lieu of Taxation: Distribution of Entitlements PILS Levied TOTAL PILS Adjustment TOTAL PIL Distrib. of PIL Entitlement in Col. 7 Distribution of Education PILS in column 10 by School Board Source of PILS LT / ST UT Education Levied to PILS Levied Entitlement English - English - French - LT / ST UT Education French - Public Other Public Separate Separate $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5010 Canada ,723 42,620 49, , ,211 29,723 42,620 49,868 36, , Canada Enterprises Ontario Municipal Tax Assist. Act 5210 Prev. Exempt Properties Other Mun. Tax Asst. Act ,783 32,669 1,655 57,107 57,107 22,783 32,669 1,655 1, Inst. Payments - Heads and Beds , , , ,375 75, , Railway Rights-of-way Utility Corridors/Transmission Hydro-Electric Power Dams Other Ontario Enterprises 5410 Ontario Mortgage and Housing Corporation.... 5,405 7,750 2,375 15,530 15,530 5,405 7,750 2,375 1, , Liquor Control Board of Ont ,265 7,550 12,815 12,815 5,265 7, Railway Rights-of-way ,254 31,906 59, , ,795 22,254 31,906 59,635 43, , Utility Corridors/Transmission ,884 11, ,131 40,131 28,884 11, Ontario Lottery and Gaming Corp Other Municipal Enterprises ,753 68,473 80, , ,344 47,753 68,473 80,118 58, , Other Muns and Enterprises , , , , , , , , ,078 1,554 85,117 3, Amounts Added to PIL TOTAL 442, , ,291 1,578, ,578, , , , ,738 2, ,051 6,

57 C Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 40 Asmt Code: 3006 CONSOLIDATED STATEMENT OF OPERATIONS: EXPENSES MAH Code: for the year ended December 31, 2016 Salaries, Wages and Employee Benefits Interest on Long Term Debt Materials Contracted Services Rents and Financial Expenses External Transfers Amortization Total Expenses Before Adjustments Inter-Functional Adjustments Allocation of Program Support * Total Expenses After Adjustments $ $ $ $ $ $ $ $ $ $ $ General government 0240 Governance , , , , Corporate Management ,935,365 2,071, ,000 6,507,266-90,160 6,417, Program Support ,822,996 9,057, ,034 79, ,314 23,185,811-5,425,628-16,955, , Subtotal 17,321, ,321, ,034 79, , ,314 30,448,007-5,515,788-16,955,869 7,976,350 Protection services 0410 Fire ,778,313 1,195,949 30, ,930 21,461, ,700 2,419,009 24,187, Police Court Security Prisoner Transportation Conservation authority Protective inspection and control ,698 7, , ,278 1,017,303 21, ,485 1,154, Building permit and inspection services ,398, ,172 2,278, , ,797 2,407, Emergency measures Provincial Offences Act (POA) , ,190 53, , Other Subtotal 21,823, ,561, , , ,930 25,234, ,852 2,828,318 28,280,566 Transportation services 0611 Roads - Paved ,111, ,181 6,177, ,009 5,964,484 18,703,273-1,190,535 1,946,059 19,458, Roads - Unpaved Roads - Bridges and Culverts Roads - Traffic Operations & Roadside ,356 41, ,556 24, , Winter Control - Except sidewalks, Parking Lots , , ,384 1,272, , ,667 1,896, Winter Control - Sidewalks, Parking Lots Only ,086 96, , ,894 97, , Transit - Conventional Transit - Disabled & special needs Parking , , ,097 11, ,244 2,067, , ,229 2,162, Street lighting ,038,247 2,038, ,495 2,264, Air transportation Other Subtotal 8,263, ,181 8,975,542 1,468,141 11, ,346,112 25,175, ,842 2,700,068 26,998,194 Environmental services 0811 Wastewater collection/conveyance ,555,566 20,011,825 19,461 3,338,170 24,925,022 2,660,804 3,065,406 30,651, Wastewater treatment & disposal Urban storm sewer system ,152 2,858,595 4,124 4,131,558 7,406, , ,203 8,371, Rural storm sewer system Water treatment Water distribution/transmission ,321, ,508 4,956,979 15,437,869 1,808,836 25,708,931 2,784,964 3,166,313 31,660, Solid waste collection ,060 22, ,095 11, , Solid waste disposal Waste diversion Other Subtotal 5,368, ,508 27,849,434 15,441,993 19, ,278,564 58,141,477 5,573,392 7,080,156 70,795,025 Health services 1010 Public health services Hospitals Ambulance services Ambulance dispatch Cemeteries , ,016 79,248 1,241, , ,565 1,515, Other Subtotal 962, , ,248 1,241, , ,565 1,515,508 Social and family services 1210 General assistance Assistance to aged persons ,709, ,880 8,035 2,210, ,648 2,456, Child care Other Social Planning 296, ,900 32, , Subtotal 1,709, ,880 8, , ,507, ,640 2,786,148 52

58 C Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 40 Asmt Code: 3006 CONSOLIDATED STATEMENT OF OPERATIONS: EXPENSES MAH Code: for the year ended December 31, 2016 Salaries, Wages and Employee Benefits Interest on Long Term Debt Materials Contracted Services Rents and Financial Expenses External Transfers Amortization Total Expenses Before Adjustments Inter-Functional Adjustments Allocation of Program Support * Total Expenses After Adjustments Social Housing $ $ $ $ $ $ $ $ $ $ $ 1410 Public Housing Non-Profit/Cooperative Housing Rent Supplement Programs Other Other Subtotal Recreation and cultural services 1610 Parks ,043,734 2,604, , ,623 7,455, , ,883 8,748, Recreation programs ,866,994 1,373,570 90,000 1,454, ,667 5,186, ,296 5,762, Rec. Fac. - Golf Crs, Marina, Ski Hill Rec. Fac. - All Other ,749, ,964 3,030, ,999 1,893,044 9,301,252 62,543 1,040,528 10,404, Libraries ,552,826 2,191,883 30, ,433 7,090, ,869 7,877, Museums , , ,503 13, , Cultural services , , ,325 1,555, ,799 1,727, Other Subtotal 15,086, ,982 9,742, , ,454,905 3,393,577 30,706, ,241 3,465,543 34,652,233 Planning and development 1810 Planning and zoning ,496, ,348 2,190, ,422 2,433, Commercial and Industrial ,236 1,075,619 22,679 22,500 1,873, ,157 2,081, Residential development Agriculture and reforestation Tile drainage/shoreline assistance Other Subtotal 2,248, ,769,967 22,679 22, ,063, ,579 4,515, Other TOTAL 72,784, ,671 62,912,838 18,356, ,579 2,251,805 20,357, ,519, ,519,393 53

59 Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 42 ADDITIONAL INFORMATION Asmt Code: 3006 MAH Code: for the year ended December 31, 2016 Additional information contained in Schedule 40 1 Total of column 1 includes: $ 5010 Salaries and wages ,599, Employee benefits ,184, Total Salaries, Wages and Employee benefits (Not including line 5050) ,784, Salaries, Wages and Employee benefits capitalized on Schedule Total Salaries, Wages and Employee benefits (including capitalized wages) ,784,183 Total of column 3 includes: 5110 Amounts for tax write-offs reported in SLC Total of column 4 includes: 5210 Municipal Property Assessment Corporation (MPAC) Total of column 5 includes: 5610 Short term interest costs Total of column 6 includes: 5810 Grants to charitable and non-profit organizations , Grants to universities and colleges ,000 Contributions to UNCONSOLIDATED joint local boards 5840 Health unit District Social Services Administration Board (DSSAB) Consolidated Municipal Service Manager (CMSM) Homes for the aged Recreation boards Fire area boards Other Other Other Other Total of column 11 includes: Payments for long term commitments and liabilities financed from the consolidated 6010 statement of operations

60 Tan Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 51 Asmt Code: 3006 SCHEDULE OF TANGIBLE CAPITAL ASSETS MAH Code: for the year ended December 31, 2016 ANALYSIS BY FUNCTIONAL CLASSIFICATION COST AMORTIZATION 2016 Opening Net Book Value 2016 Opening Cost Balance Additions and Betterments Disposals Write Downs 2016 Closing Cost Balance 2016 Opening Amortization Balance Annual Amortization Amortization Disposal 2016 Closing Amortization Balance 2016 Closing Net Book Value $ $ $ $ $ $ $ $ $ $ $ 0299 General government ,486,354 47,980, ,471 48,584,804 7,493, ,317 8,298,296 40,286,508 Protection services 0410 Fire ,867,738 13,853,485 13,853,485 7,985, ,930 8,441,677 5,411, Police Court Security Prisoner Transportation Conservation authority Protective inspection and control Building permit and inspection services Emergency measures Provincial Offences Act (POA) Other Subtotal 5,867,738 13,853, ,853,485 7,985, , ,441,677 5,411,808 Transportation services 0611 Roads - Paved ,018, ,382,232 8,817, , ,347, ,363,930 5,733, , ,273,242 73,074, Roads - Unpaved Roads - Bridges and Culverts ,226,388 2,788,223 1,088,555 3,876,778 1,561, ,641 1,792,476 2,084, Roads - Traffic Operations & Roadside Winter Control - Except sidewalks, Parking Lots ,012,469 7,028,125 7,028,125 5,015, ,384 5,239,040 1,789, Winter Control - Sidewalks, Parking Lots Only Transit - Conventional Transit - Disabled & special needs Parking ,996,425 8,369,733 8,369,733 1,373, ,244 1,531,552 6,838, Street lighting Air transportation Other Subtotal 80,253, ,568,313 9,906, , ,622, ,314,729 6,346, , ,836,310 83,785,742 Environmental services 0811 Wastewater collection/conveyance ,048, ,590,565 17,618, , ,089,729 38,542,426 3,338, ,730 41,779,866 78,309, Wastewater treatment & disposal Urban storm sewer system ,056, ,090,502 21,749, , ,627,499 44,034,332 4,131, ,884 48,004,006 73,623, Rural storm sewer system Water treatment Water distribution/transmission ,002,138 84,577,488 11,038, ,802 95,500,363 24,575,350 1,808,836 83,033 26,301,153 69,199, Solid waste collection Solid waste disposal Waste diversion Other Subtotal 180,106, ,258,555 50,406, , ,217, ,152,108 9,278, , ,085, ,132,566 Health services 1010 Public health services Hospitals Ambulance services Ambulance dispatch Cemeteries ,953,709 3,052, ,416 3,192,123 1,098,998 79,248 1,178,246 2,013, Other Subtotal 1,953,709 3,052, , ,192,123 1,098,998 79, ,178,246 2,013,877 Social and family services 1210 General assistance Assistance to aged persons Child care Other Subtotal

61 Tan Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 51 Asmt Code: 3006 SCHEDULE OF TANGIBLE CAPITAL ASSETS MAH Code: for the year ended December 31, 2016 ANALYSIS BY FUNCTIONAL CLASSIFICATION COST AMORTIZATION 2016 Opening Net Book Value 2016 Opening Cost Balance Additions and Betterments Disposals Write Downs 2016 Closing Cost Balance 2016 Opening Amortization Balance Annual Amortization Amortization Disposal 2016 Closing Amortization Balance 2016 Closing Net Book Value $ $ $ $ $ $ $ $ $ $ $ Social Housing 1410 Public Housing Non-Profit/Cooperative Housing Rent Supplement Programs Other Other Subtotal Recreation and cultural services 1610 Parks ,869,379 74,323, ,777 74,998,526 5,454, ,624 5,991,994 69,006, Recreation programs ,958,015 18,368,968 18,368,968 9,410, ,667 9,811,620 8,557, Rec. Fac. - Golf Crs, Marina, Ski Hill Rec. Fac. - All Other ,459,039 73,403,881 73,403,881 36,944,842 1,893,044 38,837,886 34,565, Libraries ,322,264 15,503,805 15,503,805 5,181, ,433 5,495,974 10,007, Museums ,821,357 5,580,624 5,580, , , ,752 4,713, Cultural services ,624,787 6,601,325 6,601, , ,320 1,116,858 5,484, Other Subtotal 135,054, ,782, , ,457,129 58,727,511 3,393, ,121, ,336,045 Planning and development 1810 Planning and zoning Commercial and Industrial Residential development Agriculture and reforestation Tile drainage/shoreline assistance Other Subtotal Other Total Tangible Capital Assets 443,722, ,495,745 61,731,413 1,299, ,927, ,773,072 20,357,745 1,170, ,960, ,966,546 56

62 eprovince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 51 SCHEDULE OF TANGIBLE CAPITAL ASSETS Asmt Code: 3006 MAH Code: for the year ended December 31, 2016 SEGMENTED BY ASSET CLASS 2016 Opening Net Book Value (NBV) 2016 Closing Net Book Value (NBV) 1 11 General Capital Assets $ $ 2005 Land ,497,346 82,497, Land Improvements ,695,318 9,436, Buildings ,051,940 82,692, Machinery & Equipment ,552,917 1,800, Vehicles ,011,009 3,610, Other Information Technology , , Other Total General Capital Assets 184,390, ,330, Opening Net Book Value (NBV) 2016 Closing Net Book Value (NBV) 1 11 Infrastructure Assets $ $ 2205 Land ,140,890 7,557, Land Improvements ,307,056 37,394, Buildings ,190,049 9,654, Machinery & Equipment ,711,406 1,428, Vehicles ,220,212 4,427, Linear Assets ,896, ,370, Other Bridges, Dams and Other ,564 1,803, Other Total Infrastructure Assets 259,332, ,636, Total Tangible Capital Assets 443,722, ,966, Construction-in-progress 96,971,710 75,703, Total Tangible Capital Assets and Construction-in-progress 540,694, ,670,532 57

63 t Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 51 Asmt Code: 3006 SCHEDULE OF TANGIBLE CAPITAL ASSET: CONSTRUCTION-IN-PROGRESS MAH Code: for the year ended December 31, 2016 ANALYSIS BY FUNCTIONAL CLASSIFICATION COST 2016 Opening Balance Expenditures in 2016 Less Assets Capitalized 2016 Closing Balance $ $ $ $ 0299 General government Protection services 0410 Fire Police Court Security Prisoner Transportation Conservation authority Protective inspection and control Building permit and inspection services Emergency measures Provincial Offences Act (POA) Other Subtotal Transportation services 0611 Roads - Paved ,736,158 7,394,770 12,351,907 21,779, Roads - Unpaved Roads - Bridges and Culverts Roadways - Traffic Operations & Roadside Winter Control - Except sidewalks, Parking Lots Winter Control - Sidewalks, Parking Lots Only Transit - Conventional Transit - Disabled & special needs Parking Street lighting Air transportation Other Subtotal 26,736,158 7,394,770 12,351,907 21,779,021 Environmental services 0811 Wastewater collection/conveyance ,575,766 9,613,512 16,057,999 15,131, Wastewater treatment & disposal Urban storm sewer system ,107,550 5,679,713 9,487,149 23,300, Rural storm sewer system Water treatment Water distribution/transmission ,552,236 9,037,965 15,096,629 15,493, Solid waste collection Solid waste disposal Waste diversion Other Subtotal 70,235,552 24,331,190 40,641,777 53,924,965 Health services 1010 Public health services Hospitals Ambulance services Ambulance dispatch Cemeteries Other Subtotal Social and family services 1210 General assistance Assistance to aged persons Child care Other Subtotal Social Housing 1410 Public Housing Non-Profit/Cooperative Housing Rent Supplement Programs Other Other Subtotal Recreation and cultural services 1610 Parks Recreation programs Rec. Fac. - Golf Crs, Marina, Ski Hill Rec. Fac. - All Other Libraries Museums Cultural services Other Subtotal Planning and development 1810 Planning and zoning Commercial and Industrial Residential development Agriculture and reforestation Tile drainage/shoreline assistance Other Subtotal Other Total Construction-In-Progress 96,971,710 31,725,960 52,993,684 75,703,986 58

64 et Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 53 Asmt Code: 3006 CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS MAH Code: (NET DEBT) AND TANGIBLE CAPITAL ASSET ACQUISITION FINANCING/DONATIONS for the year ended December 31, 2016 CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (NET DEBT) 1 $ 1010 Annual Surplus/(Deficit) (SLC ) ,648, Acquisition of tangible capital assets ,473, Amortization of tangible capital assets (SLC ) ,357, Contributed (Donated) tangible capital assets ,990, Change in construction-in-progress (Gain)/Loss on sale of tangible capital assets , Proceeds on sale of tangible capital assets , Write-downs of tangible capital assets Other Other Subtotal -19,976, Change in supplies inventories , Change in prepaid expenses , Other Subtotal 2, (Increase)/decrease in net financial assets/net debt ,324, Net financial assets (net debt), beginning of year ,654, Net financial assets (net debt), end of year ,329,282 SOURCES OF FINANCING FOR TCA ACQUISITIONS / DONATIONS 1 Long Term Liabilities Incurred $ 0205 Canada Mortgage and Housing Corporation (CMHC) Ontario Financing Authority Commercial Area Improvement Program Other Ontario housing programs Serial debentures ,250, Sinking fund debentures Long term bank loans Long term reserve fund loans Lease purchase agreements (Tangible capital leases) Construction Financing Debentures Infrastructure Ontario Other Other Subtotal 7,250,000 Financing from Dedicated Revenue 0405 Municipal Property Tax by Levy Reserves and Reserve funds (SLC SLC SLC ) ,529, Municipal User Fees & Service Charges Development Charges (SLC ) ,383, Recreation land (The Planning Act) (SLC ) , Donations Other Contributions from Others ,847, Proceeds from the sale of Tangible Capital Assets, etc Investment income Prepaid special charges Other Opening unexpended capital financing balance ,015, Other Capital expenses ,370, Other Return to reserves & reserve fund ,676, Other Equipment Operating Fund , Subtotal 32,840,086 Government Transfers 0425 Capital Grants: Federal (SLC (SLC SLC ) , Capital Grants: Provincial (SLC (SLC SLC ) Capital Grants: Other Municipalities (SLC ) Canada Gas Tax (SLC ) ,083, Provincial Gas Tax (SLC ) Subtotal 6,127, Subtotal 38,967, Contributed (Donated) tangible capital assets ,990, Total Capital Financing 62,207, Unexpended Capital Financing or (Unfinanced Capital Outlay) ,743,958 59

65 onsprovince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 54 Asmt Code: 3006 CONSOLIDATED STATEMENT OF CASH FLOW - INDIRECT METHOD MAH Code: for the year ended December 31, 2016 * Municipalities must choose either the direct or indirect method. If direct method is chosen, please use Schedule 54A. CONSOLIDATED STATEMENT OF CASH FLOW - INDIRECT METHOD 2016 Actual 1 Operating Transactions $ 2010 Annual Surplus/(Deficit) (SLC ) ,648, Non-cash items including amortization ,335, Contributed (Donated) tangible capital assets ,990, Change in non-cash assets and liabilities , Prepaid expenses , Change in deferred revenue ,763, Other Other Other Cash provided by operating transactions 21,842,436 Capital Transactions 0610 Proceeds on sale of tangible capital assets , Cash used to acquire tangible capital assets ,473, Change in construction-in-progress Other Cash applied to capital transactions -24,321,881 Investing Transactions 0810 Proceeds from portfolio investments Portfolio investments ,100, Other Cash provided by / (applied to) investing transactions -1,100,941 Financing Transactions 1010 Proceeds from long term debt issues ,250, Principal long term debt repayment ,781, Temporary loans Repayment of temporary loans Other Other Other Cash applied to financing transactions 4,468, Increase in cash and cash equivalents , Cash and cash equivalents, beginning of year ,621, Cash and cash equivalents, end of year ,509, Actual 1 Cash and cash equivalents represented by: $ 1401 Cash ,509, Temporary borrowings Short term investments Other Cash and cash equivalents, end of year ,509,280 1 Cash: $ 1501 Unrestricted ,756, Restricted ,753, Unallocated Cash and cash equivalents, end of year ,509,280 60

66 0Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 60 Asmt Code: 3006 CONTINUITY OF RESERVES AND RESERVE FUNDS MAH Code: for the year ended December 31, 2016 Obligatory Res. Funds, Deferred Rev. Discretionary Res. Funds Reserves $ $ $ 0299 Balance, beginning of year ,583,426 55,314,465 7,987, Allocation of Surplus ,358, , Allocation of Surplus : for operating ,681, , Allocation of Surplus : for capital ,676,547 0 Development Charges Act 0610 Non-discounted services ,731, Discounted services Credits utilized (Development Charges Act) (SLC ) Subtotal Development Charges Act 4,731, Lot levies Subdivider contributions Recreational land (the Planning Act) , Investment Income ,331 1,210, Gasoline Tax - Province Building Code Act, 1992 (Section (d)) , Gasoline Tax - Federal ,853, Building Canada Fund (BCF) Inter - Reserve Fund / Reserves Transfer Other Other Other Other TOTAL Revenues & Surplus 9,476,194 38,568, ,951 Less: Utilization of reserve funds and reserves (transfers) 1012 For acquisition of tangible capital asset ,529, For current operations ,838,038 1,782, Development Charges earned to tangible capital asset acquisition (SLC ) ,383, Development Charges earned to operations (SLC ) , Recreational land (the Planning Act) earned to tangible capital asset acquisition , Recreational land (the Planning Act) earned to operations , Deferred revenue earned (Provincial Gas Tax) for Transit (Operations) Deferred revenue earned (Provincial Gas Tax) for Transit (Capital) Deferred revenue earned (Canada Gas Tax) ,083, Development Charges Act - Credits Provided (SLC ) Inter - Reserve Fund / Reserves Transfer Less: Utilization (deferred revenue recognized) ,713,063 30,367,102 1,782, Balance, end of year ,346,557 63,515,903 6,937,366 61

67 0Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 60 Asmt Code: 3006 CONTINUITY OF RESERVES AND RESERVE FUNDS MAH Code: for the year ended December 31, 2016 Obligatory Res. Funds, Deferred Discretionary Res. Funds Reserves Totals in line 2099 are analysed as follows: Rev $ $ $ 5010 Working funds Contingencies Asset Replacement funds for: Sewer & Water 5030 Sewer Water Replacement of equipment ,867, Sick leave ,121, Insurance ,265, Workplace Safety and Insurance Board (WSIB) ,417, Post-employment benefits Tax rate stabilization Lot levies Parking revenues , Debenture repayment Exchange rate stabilization Per Service Purpose: 5205 General government ,993,147 6,144, Protection services Transportation services: 5215 Roadways ,569, Winter Control , Transit Parking Street lighting Air transportation Environmental services: 5225 Wastewater system ,380, Storm water system Waterworks system ,273, Solid waste collection Solid waste disposal Waste diversion Health services , Social and family services Social housing Recreation and cultural services: 5265 Parks Recreation programs Recreation facilities - Golf Course, Marina, Ski Hill Recreation facilities - All Other , Libraries , Museums Cultural services , Planning and development ,892, , Other Infrastructure Renewal Fund etc ,861, ,980 Obligatory Deferred Revenue: 5610 Development Charges Act - Non-discounted services ,347, Development Charges Act - Discounted services Subdivider contributions , Recreational land (the Planning Act) ,090, Building Code Act, 1992 (Section (d)) ,254, Gasoline Tax - Province Gasoline Tax - Federal ,640, Canada Transit Funding (Bill C-48) Building Canada Fund (BCF) Other Other Other Other Other TOTAL 30,346,557 63,515,903 6,937,366 62

68 ule Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 61 Asmt Code: 3006 DEVELOPMENT CHARGES RESERVE FUNDS MAH Code: for the year ended December 31, 2016 Development Charges Proceeds Development Charges Disbursements Balance January 1 Development Charges Collected Interest and Investment Income Credits Utilized Total To: Consolidated To: Tangible Capital Statement of Operations Asset Acquisition Other Disbursements Credits Provided Total Balance December Development Charges $ $ $ $ $ $ $ $ $ $ $ 0205 General Government ,526 36,129 1,128 37, , Fire Protection ,629,370 92,600 3,331 95, , ,651 4,459, Police Protection Roads and Structures ,003, , ,146 35, , ,090 1,662, Transit Wastewater ,513, ,334-3, ,452 35,925 35,925 1,841, Stormwater ,782, ,304 2, ,835 35,925 97, ,444 1,815, Water ,010,482 90,973 33, ,487 35,925 35,925 4,099, Emergency Medical Services Homes for the Aged Daycare Housing Parkland Development , ,077 7, ,717 42,000 28,205 70,205 1,227, GO Transit Library , ,965 11, ,063 87,300 87,300 1,410, Recreation ,525,169 1,669,247-37,289 1,631, , ,214 7,966, Development Studies , ,032 6, ,727 99,248 99, , Parking , , Animal Control Municipal Cemeteries Other... Works Yard & Equipment 227, , ,248 16,194 16, , Other... City Engineering 137, , , , Other Other TOTAL 23,158,878 4,731,791 26, ,758, ,700 1,383, ,569,196 26,347,738 63

69 16 F Province of Ontario - Ministry of Municipal Affairs : V01 FIR2016: Cambridge C Schedule 62 Asmt Code: 3006 DEVELOPMENT CHARGES RATES MAH Code: for the year ended December 31, 2016 Sq. Foot / Sq. Metre / Per Hectare / Per Other (Please specify) Service 1 Municipal Wide Charges RESIDENTIAL CHARGES ($) NON - RESIDENTIAL CHARGES ($) Apartments NON Res. Industrial Commercial Institutional Other Single Semi- < = > = Apartments residential per Other Other Detached Detached Other Multiples 1 Bedroom 2 Bedroom per unit unit If Other, Please Specify > 5 6 Apartments per unit Sq. Foot / Sq. Metre / Per Hectar/ Per Other (Please Specify) 10 Sq. Foot / Sq. Metre / Per Hectar/ Per Other (Please Specify) 11 Sq. Foot / Sq. Metre/ Per Hectare/ Per Other (Please Specify) 12 Sq. Foot / Sq. Metre/ Per Hectare/ Per Other (Please Specify) Other residential per unit If Other, Please Specify > 690 wastewater 1, , stormwater water roads administration studies fire public works parks , indoor recreation services 1, , library general government engineering Other 14 Other 15 Other TOTAL MUNICIPAL WIDE CHARGES , , Are the rates being reported based on a new development charge by-law that was approved by council within the reporting year? If yes(y), please attach an electronic version of the new by-law. 64

70 -Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 70 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Asmt Code: 3006 MAH Code: for the year ended December 31, 2016 Financial Assets 1 $ 0299 Cash and cash equivalents ,509,280 Accounts receivable 0410 Canada , Ontario Upper-tier , Other municipalities , School boards ,109, Other receivables ,988, Subtotal 14,747,107 Taxes receivable 0610 Current year's levies ,041, Previous year's levies ,323, Prior year's levies ,000, Penalties and interest ,377, LESS: Allowance for uncollectables ,705, Subtotal 19,036,695 Investments * 0805 Canada Ontario , Municipal ,995, Government business enterprises ,236, Other One Fund, Other ,683, Subtotal 149,613,243 Debt Recoverable from Others 0861 Municipalities (SLC ) School Boards (SLC ) Retirement Funds (SLC ) Sinking Funds (SLC ) Individuals Other Subtotal 0 Other financial assets 0830 Inventories held for resale Land held for resale ,940, Notes receivable , Mortgages receivable Deferred taxes receivable Other Subtotal 14,090, TOTAL Financial Assets 245,997, * Market value of Investments included in Line ,970,628 65

71 -Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 70 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Asmt Code: 3006 MAH Code: for the year ended December 31, 2016 Liabilities 1 Temporary loans $ 2010 Operating purposes Tangible Capital Assets: 2020 Canada Ontario Other Subtotal 0 Accounts Payable 2210 Canada , Ontario , Upper-tier ,295, Other municipalities , School boards , Interest on debt Trade accounts payable ,510, Other ,397, Subtotal 20,529, Estimated Tax Liabilities (PS3510) Deferred revenue 2410 Obligatory reserve funds (SLC ) ,346, Other ,893, Subtotal 38,240,490 Long term liabilities 2610 Debt issued Debt payable to others ,178, Lease purchase agreements (Tangible capital leases) Other Other LESS: Debt issued on behalf of Government Business Enterprise Subtotal 26,178,753 Solid Waste Management Facility Liabilities 2799 Solid waste landfill closure and post-closure Post employment benefits 2810 Accumulated sick leave ,101, Accrued vacation pay ,315, Accrued pensions payable ,911, Accrued Workplace Safety and Insurance Board claims (WSIB) ,390, Other Subtotal post employment benefits 66,719,181 Liability for contaminated sites 2910 Remediation costs of contaminated sites TOTAL Liabilities 151,667, Net Financial Assets / Net Debt (Total Financial Assets LESS Total Liabilities) 94,329,282 Non-Financial Assets 1 $ 6210 Tangible Capital Assets (SLC ) ,670, Inventories of Supplies , Prepaid Expenses ,216, Total Non-Financial Assets 562,420, Total Accumulated Surplus/(Deficit) 656,749,566 Analysis of the Accumulated Surplus/(Deficit) 1 $ 6410 Equity in Tangible Capital Assets ,670, Reserves and Reserve Funds (SLC SLC ) ,453, General Surplus/ (Deficit) , Unexpended capital financing ,743,958 Local boards 5030 Transit operations Water operations Wastewater operations Solid waste operations Libraries , Cemeteries Recreation, community centres and arenas Business Improvement Area , Other Land Held for Resale ,940, Other Other Other Total Local Boards 14,018, Equity in Government Business Enterprises (SLC ) ,236,333

72 -Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 70 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Asmt Code: 3006 MAH Code: for the year ended December 31, Unfunded Employee Benefits ,403, Unfunded Landfill closure costs Unfunded Remediation costs of contaminated sites Other Long Term Debt ,178, Other Other Other Total Other -89,582, Total Accumulated Surplus/(Deficit) 656,749,566 67

73 d Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Single/Lower-Tier ONLY Schedule 72 CONTINUITY OF TAXES RECEIVABLE Asmt Code: 3006 MAH Code: for the year ended December 31, 2016 Continuity of Taxes Receivable 9 $ 0210 Taxes receivable, beginning of year ,787, PLUS: Amounts added to tax bills for collection purposes only ,496, PLUS: Tax amounts levied in the year (SLC ) ,710, PLUS: Current Year Penalties and Interest ,957, LESS: Total cash collections (SLC ) ,368, LESS: Tax adjustments before allowances (SLC ) ,900, LESS: Tax adjustments not applied to taxation (SLC ) , PLUS: Taxes receivable, end of year ,036,695 Cash Collections 9 $ 0610 Current year's tax ,084, Previous year's tax ,719, Penalties and interest ,369, Amounts added to tax bills for collection purposes only ,282, Other Refund Payments ,088, TOTAL Cash Collections 259,368,735 68

74 d Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Single/Lower-Tier ONLY Schedule 72 CONTINUITY OF TAXES RECEIVABLE Asmt Code: 3006 MAH Code: for the year ended December 31, 2016 SCHOOL BOARDS English - Public French - Public English - Separate French - Separate Other TOTAL Education Lower-Tier (Single- TOTAL Tax Upper-Tier Tier) Adjustment Tax Adjustments Applied to Taxation $ $ $ $ $ $ $ $ $ 1099 Municipal Act (353, 354, 357, 358, RfR) ,616,654 6, ,765 17,949 2,101, ,775 1,771,943 4,586, Discounts for Advance Payments (Mun. Act 345(10)) Tax Credit (Mun. Act 474.3) Tax Cancellation - Low income seniors and Disabled persons (Mu Rebates to Commercial properties (Mun. Act 362) , ,253 2, , , , , Rebates to Industrial properties (Mun. Act 362) , ,731 1, , , , , Subtotal 353,582 1, ,984 4, , , ,243 1,167, Rebates for Charities (Mun. Act 361) , , ,698 34,910 50, , Vacant Unit Rebates (Mun. Act 364) Reduction for Heritage Property (Mun. Act 365.2) Other Other Other Other Tax adjustments before allowances 2,014,511 8, ,303 23, ,645,026 1,028,876 2,226,663 5,900, SCHOOL BOARDS English - Public French - Public English - Separate French - Separate Other TOTAL Education Lower-Tier (Single- TOTAL Tax Upper-Tier Tier) Adjustment Tax Adjustments Not Applied to Taxation $ $ $ $ $ $ $ $ $ 4010 Tax sale, Tax registration accounts Tax Deferral - Low income seniors and Disabled persons (Mun. Ac Net Impact of 5% Capping Limit Program Other Capping 63, , ,407 50,907 74, , Other Miscellaneous Revenue 0-567, , Tax Adjustments Not Applied to Taxation 63, , , ,422 74, ,919 Additional Information 6010 Recovery of Tax Deferrals Entitlement of School Boards ,440, ,071 15,527, , ,823,410 69

75 7Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 74 Asmt Code: 3006 LONG TERM LIABILITIES AND COMMITMENTS MAH Code: for the year ended December 31, Debt burden of the municipality All outstanding debt issued by the municipality, predecessor municipalities and consolidated entities $ 0210 To Ontario and agencies To Canada and agencies To Others Other Other Subtotal PLUS: All debt assumed by the municipality from others ,178,753 LESS: All debt assumed by others 0610 Ontario School boards Other Municipalities Government Business Enterprises Other Other Subtotal 0 LESS: Debt retirement funds 0810 Sewer Water Other Other Other Subtotal 0 LESS: Own sinking funds (Actual balances) 1010 General municipal Enterprises and others Other Other Other Subtotal TOTAL Net Long Term Liabilities of the Municipality 26,178, Debt burden of the municipality: Analysed by debt instrument 1210 Sinking fund debentures Installment (serial) debentures ,178, Long term bank loans Lease purchase agreements (Tangible capital leases) Mortgages Construction Financing Debentures Other Other TOTAL Net Long Term Liabilities of the Municipality 26,178, Debt burden of the municipality: Analysed by function 1405 General government ,500, Protection services Transportation services: 1415 Roadways ,290, Winter Control Transit Parking ,609, Street Lighting Air Transportation Environmental services: 1425 Wastewater system Storm water system Waterworks system ,651, Solid Waste collection Solid Waste disposal Waste diversion Health services Social and family services Social housing Recreation and cultural services: 1465 Parks , Recreation programs Recreation facilities - Golf Course, Marina, Ski Hill Recreation facilities - All Other ,215, Libraries Museums , Cultural services Planning and development Other long term liabilities TOTAL Net Long Term Liabilities of the Municipality 26,178,753 1

76 7Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 74 Asmt Code: 3006 LONG TERM LIABILITIES AND COMMITMENTS MAH Code: for the year ended December 31, 2016 Contingent Liabilities Is Value in Column 2 Estimated? Value Number of Years Payable Over 8. Contingent liabilities Y or N Y or N $ Years 2610 Pending or threatened litigation Retroactive wage settlements Guarantees of long term indebtedness in the name of the municipality but assumed by others Outstanding loans guaranteed Other TOTAL 0 Principal Interest Total 10. Debt Charges for the current year Recovered from the Consolidated Statement of Operations $ $ $ 3012 General Tax Rates ,781, , Other Tile Drainage/Shoreline Assistance Recovered from reserve funds Recovered from unconsolidated entities: 3030 Electricity Gas Telephone Other Other TOTAL 2,781, ,671 Line 3099 includes: 3110 Lump sum (balloon) repayments of long term debt Provincial Grant funding for repayment of long term debt Analysis of Lease Purchase Agreements (Tangible Capital Leases) 3140 Debt charges for Lease purchase agreements (Tangible capital leases) Principal Interest 11. Long term debt refinanced 1 2 $ $ 3410 Repayment of Provincial Special Assistance Other long term debt refinanced

77 74Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 74 LONG TERM LIABILITIES AND COMMITMENTS Asmt Code: 3006 MAH Code: for the year ended December 31, Future principal and Interest payments on EXISTING debt RECOVERABLE FROM: Consolidated Statement of Operations Reserve Funds Unconsolidated Entities All Others Principal Interest Principal Interest Principal Interest Principal Interest $ $ $ $ $ $ $ $ 3210 Year ,521, , Year ,596, , Year ,678, , Year ,766, , Year ,578, , Years 2022 to ,037, , Years 2027 onwards Int. to be earned on sink. funds TOTAL 26,178,753 3,306, Other notes Please list all Other Notes and forward supporting schedules as required by to: FIR.mah@ontario.ca * Use ALT + ENTER Keys to "Return" to the next line. 72

78 dul Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 76 GOVERNMENT BUSINESS ENTERPRISES Asmt Code: 3006 MAH Code: for the year ended December 31, 2016 GOVERNMENT BUSINESS ENTERPRISES Please Specify GBE STATEMENT OF FINANCIAL POSITION Energy Plus Total Assets $ $ $ $ $ $ 0210 Current ,846,000 57,846, Capital ,640, ,640, Other ,034,000 19,034, Other Regulatory Assets ,212,000 9,212, Total Assets 238,732, ,732,000 Liabilities 0410 Current ,771,000 40,771, Long-term ,790,000 86,790, Other ,752,000 13,752, Other Total Liabilities 141,313, ,313, Net Equity 97,419, ,419, Municipality's Share 79,236,393 79,236,393 STATEMENT OF OPERATIONS 0810 Revenues ,938, ,938, Expenses ,426, ,426, Net Income (Loss) 4,512, ,512, Municipality's Share 5,903,610 5,903, Dividends paid 2,765,000 2,765,000 73

79 ScProvince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 80 Asmt Code: 3006 STATISTICAL INFORMATION MAH Code: for the year ended December 31, 2016 Full-Time Funded Part-Time Funded Positions Positions Seasonal Employees 1. Municipal workforce profile Employees of the Municipality # # # 0205 Administration Fire Uniform Civilian Police Uniform Civilian Court Security Uniform Civilian Prisoner Transportation Uniform Civilian Transit Public Works Ambulance Uniform Civilian Health Services Homes for the Aged Other Social Services Parks and Recreation Libraries Planning Other Subtotal Proportion of Munic. Empl. covered by 'Collective Agreements' (%) % 10% 41% Employees of Joint Local Boards 0305 Administration Fire Uniform Civilian Police Uniform Civilian Court Security Uniform Civilian Prisoner Transportation Uniform Civilian Transit Public Works Ambulance Uniform Civilian Health Services Homes for the Aged Other Social Services Parks and Recreation Libraries Planning Other Subtotal TOTAL

80 ScProvince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 80 Asmt Code: 3006 STATISTICAL INFORMATION MAH Code: for the year ended December 31, 2016 Own Municipality Other Munic., School Boards Provincial Federal 2. Selected investments of own sinking funds as at Dec $ $ $ $ 0610 Own sinking funds Number of Contracts Value of Contracts 3. Municipal procurement this year 1 2 # $ 1010 Total construction contracts awarded ,769, Construction contracts awarded at $100,000 or greater ,380,035 Number of Building Permits Total Value of Building Permits 4. Building permit information 1 2 # $ 1210 Residential properties ,312, Multi-Residential properties ,607, All other property classes ,496, Subtotal 1, ,417, Insured value of physical assets 1 $ 1410 Buildings ,787, Machinery and equipment ,913, Vehicles ,163, Other Data Processing ,317, Other Fine Arts , Subtotal 236,992, Total Dollar Losses due to Structural Fires 1 $ 1510 Losses due to structural fires, averaged over 3 yrs ( ) ,921,167 75

81 ScProvince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 80 STATISTICAL INFORMATION Asmt Code: 3006 MAH Code: for the year ended December 31, Consolidated Local boards including Joint local boards and all local entities set up by the municipality (I) PROPORTIONALLY CONSOLIDATED joint local boards Name of Board or Entity Board Description Board Code Proportion of Total Munic. Contributions Consolidated Municipality's Share of Total Contributions Municipality's Share of Total Fee Revenues LIST % $ $ 76

82 ScProvince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 80 STATISTICAL INFORMATION Asmt Code: 3006 MAH Code: for the year ended December 31, 2016 (II) FULLY CONSOLIDATED local boards and any local entities set up by the municipality Name of Board or Entity Board Description Board Code Proportion of Total Munic. Contributions Consolidated Municipality's Share of Total Contributions Municipality's Share of Total Fee Revenues LIST % $ $ 0851 The Cambridge Library Library Board % 0852 Downtown Cambridge BIA Business Improvement Area % 0853 Preston Towne BIA Business Improvement Area % 0854 Hespeler Village BIA Business Improvement Area % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % 77

83 Sc Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 80 Asmt Code: 3006 STATISTICAL INFORMATION MAH Code: for the year ended December 31, 2016 Column Column Column Description 9. Building Permit Information (Performance Measures) # # # LIST 1300 What method does your municipality use to determine total construction value? Other Method (Please describe below) 1302 If "Other Method" is selected in line 1300, please describe the method used to determine total construction value Construction Value Index Standard il d b th W t l R i B ildi Total Value of Construction Activity $ 1304 Total Value of Construction Activity for 2016 based on permits issued ,417,228 Median Number Review of Complete Building Permit Applications: Median number of working days to review a complete building of Working Days permit application and issue a permit or not issue a permit, and provide all reasons for refusal (by Category): 1 # 1306 Category 1 : Houses (houses not exceeding 3 storeys/600 square metres) Reference : provincial standard is 10 working days 1308 Category 2 : Small Buildings (small commercial/industrial not exceeding 3 storeys/600 square metres) Reference : provincial standard is 15 working days 1310 Category 3 : Large Buildings (large residential/commercial/industrial/institutional) Reference : provincial standard is 20 working days 1312 Category 4 : Complex Buildings (post disaster buildings, including hospitals, power/water, 18 fire/police/ems), communications Note : If no complete applications were submitted and accepted for a Category on lines 1306 to 1312, please leave the cell blank and do not enter zero. 1 Number of Complete Applications Number of Incomplete Applications Total Number of Complete and Incomplete Applications Number Of Building Permit Applications # # # 1314 Category 1 : Houses (houses not exceeding 3 storeys/600 square metres) , , Category 2 : Small Buildings (small commercial/industrial not exceeding 3 storeys/600 square metres) Category 3 : Large Buildings (large residential/ commercial/ industrial/ institutional) Category 4 : Complex Buildings (post disaster buildings, including hospitals, power/water, 1320 fire/police/ems), communications Subtotal 1, ,359 Note: Zero should be entered on lines 1314 to 1320 in column 1 if no complete applications were submitted and accepted for a category. Zero should be entered in column 2 if no incomplete applications were submitted and accepted for a category. Residential Units within Settlement Areas Total Residential Units 10. Planning and Development 1 2 Land Use Planning (using building permit information) # # 1350 Number of residential units in new detached houses Number of residential units in new semi-detached houses Number of residential units in new row houses Number of residential units in new apartments/condo apartments

84 Sc Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 80 Asmt Code: 3006 STATISTICAL INFORMATION MAH Code: for the year ended December 31, Subtotal Hectares 1 Land Designated for Agricultural Purposes # 1370 Hectares of land designated for agricultural purposes in the Official Plan as of December 31, ,109 79

85 Sc Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 80 Asmt Code: 3006 STATISTICAL INFORMATION MAH Code: for the year ended December 31, Transportation Services 1 # 1710 Roads : Total Paved Lane Km Condition of Roads : Number of paved lane kilometres where the condition is rated as good to very good Column Column Column Description # # # LIST 1722 Has the entire municipal road system been rated? Y 1725 Indicate the rating system used and the year the rating was conducted PCI (1 to 10 rating), Roads : Total UnPaved Lane Km Winter Control : Total Lane Km maintained in winter Transit : Total Number of Regular Service Passenger Trips on Conventional Transit in Service Area Transit : Population of Service Area Bridges and Culverts : Total Square Metres of Surface Area on Bridges and Culverts ,962 Number of structures where the condition of primary components is rated as good to very good, requiring only repair Total Number 1 2 Rating Of Bridges And Culverts # # 1765 Bridges Culverts Subtotal Column Column Column Description # # # LIST 1768 Have all bridges and culverts in the municipal system been rated? Indicate the rating system used and the year the rating was conducted OSIM, Environmental Services 1 # 1810 Wastewater Main Backups : Total number of backed up wastewater mains Wastewater Collection/Conveyance : Total KM of Wastewater Mains Wastewater Treatment and Disposal : Total Megalitres of Wastewater Treated , Wastewater Bypasses Treatment : Estimated megalitres of untreated wastewater Urban Storm Water Management : Total KM of Urban Drainage System plus (0.005 KM times No. of Catch basins) Rural Storm Water Management : Total KM of Rural Drainage System plus (0.005 KM times No. of Catch basins) Water Treatment : Total Megalitres of Drinking Water Treated , Water Main Breaks : Number of water main breaks in a year Water Distribution/Transmission : Total kilometres of Water Distribution / Transmission Pipe Solid Waste Collection : Total tonnes collected from all property classes Solid Waste Disposal : Total tonnes disposed off from all property classes Waste Diversion : Total tonnes diverted from all property classes

86 Sc Province of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 80 Asmt Code: 3006 STATISTICAL INFORMATION MAH Code: for the year ended December 31, Recreation Services Trails : Total kilometres of trails (owned by municipality and third parties) Indoor recreation facility space : Square metres of indoor recreation facilities (municipally owned) , Outdoor recreation facility space : Square metres of outdoor recreation facility space (municipally owned) ,057 # 14. Other Revenue (Used for the calculation of Operating Cost) $ 2310 Fire Services: Other revenue Paved Roads : Other revenue Solid Waste Disposal : Other revenue Waste Diversion : Other Revenue Assessment on Exempt Properties (Enter data from returned roll) ,675,

87 hedprovince of Ontario - Ministry of Municipal Affairs : V1.03 FIR2016: Cambridge C Schedule 81 Asmt Code: 3006 ANNUAL DEBT REPAYMENT LIMIT MAH Code: based on the information reported for the year ended December 31, 2016 NOTE: THE ESTIMATED ANNUAL REPAYMENT LIMIT IS EFFECTIVE JANUARY 01, 2018 Please note that fees and revenues for Homes for the Aged are not reflected in this estimate. DETERMINATION OF ANNUAL DEBT REPAYMENT LIMIT 1 Debt Charges for the Current Year $ 0210 Principal (SLC ) ,781, Interest (SLC ) , Subtotal 3,373, Payments for Long Term Commitments and Liabilities financed from the consolidated statement of operations (SLC ) Total Debt Charges 3,373,073 1 Excluded Debt Charges $ 1010 Electricity - Principal (SLC ) Electricity - Interest (SLC ) Gas - Principal (SLC ) Gas - Interest (SLC ) Telephone - Principal (SLC ) Telephone - Interest (SLC ) Subtotal Debt Charges for Tile Drainage/Shoreline Assistance (SLC SLC ) Provincial Grant funding for repayment of long term debt (SLC SLC ) Lump sum (balloon) repayments of long term debt (SLC SLC ) Total Debt Charges to be Excluded Net Debt Charges 3,373,073 1 $ 1610 Total Revenues (* Sale of Hydro Utilities Removed) (SLC ) ,168,084 Excluded Revenue Amounts 2010 Fees for Tile Drainage / Shoreline Assistance (SLC ) Ontario Grants, including Grants for Tangible Capital Assets (SLC SLC SLC ) ,457, Canada Grants, including Grants for Tangible Capital Assets (SLC SLC ) , Deferred revenue earned (Provincial Gas Tax) (SLC ) Deferred revenue earned (Canada Gas Tax) (SLC ) ,083, Revenue from other municipalities, including Revenue for Tangible Capital Assets (SLC SLC ) ,850, Gain/Loss on sale of land & capital assets (SLC ) , Deferred revenue earned (Development Charges) (SLC ) ,569, Deferred revenue earned (Recreation Land (The Planning Act)) (SLC ) , Other Deferred revenue earned (SLC ) Donated Tangible Capital Assets (SLC ) ,990, Increase / Decrease in Government Business Enterprise equity (SLC ) ,356, Subtotal 31,504, Fees and Revenue for Joint Local Boards for Homes for the Aged Net Revenues 162,663, % of Net Revenues 40,665, ESTIMATED ANNUAL REPAYMENT LIMIT 37,292,832 For Illustration Purposes Only Annual Interest Rate years = 82

88 THE CAMBRIDGE PUBLIC LIBRARY BOARD CARRYING ON BUSINESS AS IDEA EXCHANGE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,

89 THE CAMBRIDGE PUBLIC LIBRARY BOARD INDEX December 31, 2016 PAGE NUMBER Management Responsibility for Financial Reporting 1 Independent Auditors' Report 2 Statement of Operations 3 Financial Position 4 Statement of Changes in Net Financial Assets 5 Statement of Cash Flows 6 Explanatory Financial Notes 7-13 Functional Operating Summary 14 Directory

90 THE CAMBRIDGE PUBLIC LIBRARY BOARD 1 MANAGEMENT RESPONSIBILITY FOR FINANCIAL REPORTING DECEMBER 31, 2016 The accompanying financial statements and all other information contained in this annual report are the responsibility of the management of The Cambridge Public Library Board. The financial statements have been prepared and presented by management in accordance with Canadian public sector accounting standards and have been approved by the Board of Trustees. Preparation of financial information is an integral part of management's broader responsibilities for the ongoing operations of The Cambridge Public Library Board. Management maintains a system of internal accounting and administration controls which are designed to provide reasonable assurance that transactions are accurately recorded on a timely basis, are properly approved and result in reliable financial information. Such information also includes data based on management's best estimates and judgements. Management has determined that the enclosed financial statements are presented fairly and on a consistent basis with prior years, in all material respects. The Board of Trustees review and approve the annual financial statements and also review the annual report in its entirety. The accompanying financial statements have been audited by the external auditors, Graham Mathew Professional Corporation, Chartered Professional Accountants authorized to practise public accounting by the Chartered Professional Accountants of Ontario, in accordance with Canadian generally accepted auditing standards. The external auditors have full and free access to management and the Board of Trustees. _ Mr. Gary Price Chair Ms. Helen Kelly Chief Executive Officer 85

91 INDEPENDENT AUDITORS' REPORT To the Board Members Members of Council, Inhabitants and Ratepayers of The Corporation of The City of Cambridge We have audited the accompanying financial statements of The Cambridge Public Library Board, which comprise the statement of financial position as at December 31, 2016, and the statements of operations, changes in net financial assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of The Cambridge Public Library Board as at December 31, 2016, and the results of its operations for the year then ended in accordance with Canadian public sector accounting standards. Cambridge, Ontario March 22, 2017 Chartered Professional Accountants, authorized to practise public accounting by the Chartered Professional Accountants of Ontario 86

92 THE CAMBRIDGE PUBLIC LIBRARY BOARD STATEMENT OF OPERATIONS For the year ended December 31, Library Gallery $ $ $ $ REVENUE Municipal operating contribution (note 3) 5,642, ,100 6,206,400 5,944,400 Federal / provincial supports grants (note 8) 161, , , ,464 Contributions toward capital expenditures 369,081 NIL 369, ,871 Other revenue 421, , , ,683 Total revenue 6,594, ,714 7,408,975 7,152,418 EXPENDITURE Personnel costs Salaries 3,757, ,974 4,127,189 4,115,082 Benefits 807,994 77, , ,095 4,565, ,328 5,012,537 4,995,177 Library materials Materials and processing 488,099 NIL 488, ,013 Audio visual 60,878 NIL 60,878 61,408 Periodicals 51,202 NIL 51,202 44, ,179 NIL 600, ,878 Facilities Building and equipment maintenance 550,336 7, , ,151 Utilities 202,904 2, , ,207 Other 64,110 NIL 64,110 35, ,350 10, , ,786 Administrative Advertising and supplies 66,067 40, , ,609 Other 105,916 NIL 105,916 97, ,983 40, , ,283 Capital expenditures Major projects 272,081 NIL 272, ,871 Materials development (note 11) 97,000 NIL 97,000 95, ,081 NIL 369, ,871 Exhibitions and programs 32, , , ,902 Other operating expenses 33, , , ,732 Total expenditure 6,589, ,521 7,404,892 7,145,629 Excess of revenue over expenditure (expenditure over revenue) for year 4,890 (807) 4,083 6,789 Fund balance at beginning of year 6,789 NIL 6,789 6,856 Transfer to operations during year (6,789) NIL (6,789) (6,856) Fund balance at end of year 4,890 (807) 4,083 6,789 The explanatory financial notes on pages 7 through 13 form an integral part of these financial statements. 87

93 THE CAMBRIDGE PUBLIC LIBRARY BOARD FINANCIAL POSITION As at December 31, FINANCIAL ASSETS Library Gallery $ $ $ $ Cash 47,405 5,658 53, ,978 Accounts receivable 47,971 4,900 52,871 55,850 Receivable from the City of Cambridge 103, , , ,661 FINANCIAL LIABILITIES 198, , , ,489 Accounts payable and accrued liabilities 231,370 36, , ,931 Deferred revenue 25, , , ,311 Payable to the City of Cambridge NIL NIL NIL 65,682 Liability for 27th pay (note 12) 9,900 1,100 11,000 NIL 266, , , ,924 NET FINANCIAL ASSETS (67,899) (6,067) (73,966) (63,435) NON-FINANCIAL ASSETS Prepaid expenses 72,789 5,260 78,049 70,224 Operating reserve funds (note 4) 626,461 35, , ,033 Capital reserve fund (note 4) 1,190, ,301 1,323, ,637 1,889, ,915 2,062,873 1,509,894 ACCUMULATED SURPLUS Reserve funds (note 4) 1,817, ,655 1,984,824 1,439,670 Operating fund balance 4,890 (807) 4,083 6,789 NET ASSETS 1,822, ,848 1,988,907 1,446,459 APPROVED ON BEHALF OF THE BOARD Board Member Board Member The explanatory financial notes on pages 7 through 13 form an integral part of these financial statements. 88

94 THE CAMBRIDGE PUBLIC LIBRARY BOARD STATEMENT OF CHANGES IN NET FINANCIAL ASSETS For the year ended December 31, Budget Library Gallery $ $ $ $ $ Excess of revenue over expenditure (expenditure over revenue) for year NIL 4,890 (807) 4,083 6,789 Decrease (increase) in prepaid expenses NIL (10,525) 2,700 (7,825) 50,507 Decrease (increase) in reserve funds (6,789) (8,538) 1,749 (6,789) (6,856) Net change in net financial assets (6,789) (14,173) 3,642 (10,531) 50,440 Net financial assets, beginning of year (63,435) (53,726) (9,709) (63,435) (113,875) Net financial assets, end of year (70,224) (67,899) (6,067) (73,966) (63,435) The explanatory financial notes on pages 7 through 13 form an integral part of these financial statements. 89

95 THE CAMBRIDGE PUBLIC LIBRARY BOARD STATEMENT OF CASH FLOWS For the year ended December 31, $ $ OPERATING Annual Surplus 4,083 6,789 Sources (Uses) Accounts receivable 2,979 23,134 Receivable from the City of Cambridge (108,062) 421,792 Accounts payable 36,837 (310,584) Liability for 27th pay 11,000 (91,816) Payable to the City of Cambridge (65,682) 65,682 Deferred revenue (23,456) 4,151 Prepaid expenses (7,825) 50,507 Cash provided from (used in) operations (154,209) 162,866 RESERVES Previous year's surplus (6,789) (6,856) Operating reserve fund (97,782) 133,120 Capital reserve fund (447,372) (221,893) Reserve funds 545,154 88,773 Cash used for reserve activities (6,789) (6,856) Net change in cash (156,915) 162,799 Cash, beginning of year 209,978 47,179 Cash, end of year 53, ,978 The explanatory financial notes on pages 7 through 13 form an integral part of these financial statements. 90

96 THE CAMBRIDGE PUBLIC LIBRARY BOARD EXPLANATORY FINANCIAL NOTES For the year ended December 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Cambridge Public Library Board ("the Board") was incorporated as a not-for-profit organization without share capital, under the laws of Ontario. It is a Board of the Corporation of the City of Cambridge ("the City") and is dependent on the City for a significant portion of its operating and capital funding. The financial statements of the Board are the representation of management prepared in accordance with Canadian generally accepted accounting principles as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgements. (a) Revenue Recognition The Board receives revenue from a variety of sources and applies the following recognition policies: i) Grants and contributions received for operating expenses and tangible capital assets are recognized as revenue in the year in which the related expenses are incurred. ii) Fee and fine revenue is recognized when the cash is collected. iii) Revenue from donations and fundraising events is recognized when the cash is collected. (b) Capital Assets The historical cost and accumulated amortization for capital assets are reflected on the financial statements of The Corporation of The City of Cambridge, as title to the assets rests with the City. (c) Reserve Funds Reserve funds are comprised of receipts and interest earned on funds contributed for specific purposes. Expenditures from the reserve funds are approved by the Board within prescribed terms. (d) Deferred Revenue Deferred revenue represents user charges and fees which have been collected but for which the related services have yet to be performed. These amounts will be recognized as revenues in the fiscal year the services are performed and/or expenditures are incurred. (e) Collections of Literary Materials and Art Work The Board's collection of literary materials are preserved and held for public education and research. The Board has elected not to record its collection in the statement of financial position. The Board's collection of art work is paid for through funds acquired by private fundraising and special purpose grant acquisition. The Board's collection is preserved and held for public exhibition. The Board has elected not to record its art work in the statement of financial position. Library materials and gallery acquisitions are recorded as expenditures in the period they are incurred. 91

97 THE CAMBRIDGE PUBLIC LIBRARY BOARD EXPLANATORY FINANCIAL NOTES For the year ended December 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (f) Pension Plan The Board is an employer member of the Ontario Municipal Employees Retirement System (OMERS), which is a multiemployer, defined benefit pension plan. The OMERS Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the pension plan, including investment of the assets and administration of the benefits. The Board has adopted defined contribution plan accounting principles for this Plan because insufficient information is available to apply defined benefit plan accounting principles. (g) Financial Instruments The Board's financial instruments consist of cash, accounts receivable, accounts payable and accrued liabilities. Unless otherwise noted, it is management's opinion that the Board is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted. 92

98 THE CAMBRIDGE PUBLIC LIBRARY BOARD EXPLANATORY FINANCIAL NOTES For the year ended December 31, TRUST FUNDS Funds being held on deposit with the City of Cambridge and Others in trust by the Board, and not reflected in the accompanying financial statements, are detailed as follows: $ $ LIBRARY DONATIONS Opening balance 492, ,684 Contributions received 9,729 18,746 Interest earned 13,079 14,355 Contributions to operating revenues (branch services) (14,352) (14,624) Contributions to operating revenues (gallery) (300) (300) Contributions to others (1,102) (54) On deposit with the City of Cambridge 499, ,807 ART ACQUISITION Opening balance 331, ,789 Contributions received 1,770 1,385 Contribution from operating revenues 23,500 NIL Interest earned 8,379 9,561 Acquisitions made (note 5) NIL NIL Contributions to others (37,573) (5,558) On deposit with the City of Cambridge 327, ,177 IDEA EXCHANGE ARTS ENDOWMENT FUND (note 6) Opening balance 274, ,601 Fund earnings (net of fees) 24,129 17,725 Expenditures made (11,926) (11,265) On deposit with the Ontario Arts Foundation 286, ,061 93

99 THE CAMBRIDGE PUBLIC LIBRARY BOARD EXPLANATORY FINANCIAL NOTES For the year ended December 31, MUNICIPAL OPERATING CONTRIBUTION The current operating contribution from the City of Cambridge for the year is comprised of cash appropriations made to the Board, and expenditures paid on behalf of the Board, and is broken down as follows (including contributions relating to operating reserve funds in note 4): Library Gallery $ $ Cash appropriations 5,626, ,200 6,184,900 5,923,300 Insurance coverage 13,600 5,900 19,500 19,100 WSIB schedule II coverage 2,000 NIL 2,000 2,000 5,642, ,100 6,206,400 5,944, RESERVE FUNDS Reserve funds established by the Board are held by the City of Cambridge. Details of the reserve funds are as follows: BUILDING MAINTENANCE RESERVE FUND Balance beginning of year 262, ,564 Contributions received (maintenance) 85, ,800 Interest earned 5,665 3, , ,076 Expenditures during the year (maintenance) NIL NIL Balance at the end of year 353, ,076 MATERIALS RESERVE FUND Balance beginning of year 288, ,566 Contributions received (branch services) NIL 40,000 Interest earned 6,037 6, , ,570 Expenditures during the year (branch services) NIL NIL Balance at the end of year 294, ,570 PROCESSING RESERVE FUND Balance beginning of year 13,387 13,066 Contributions received (branch services) NIL NIL Interest earned ,667 13,387 Expenditures during the year (branch services) NIL NIL Balance at the end of year 13,667 13,387 TOTAL OPERATING RESERVE FUNDS 661, ,033 94

100 THE CAMBRIDGE PUBLIC LIBRARY BOARD EXPLANATORY FINANCIAL NOTES For the year ended December 31, RESERVE FUNDS (con't) $ $ DEVELOPMENT CHARGES CAPITAL RESERVE FUND Balance at the beginning of year 875, ,744 Contributions received 523, ,108 Interest earned 11,097 8,285 1,410, ,137 Expenditures during the year (87,300) (85,500) Balance at the end of year 1,323, ,637 TOTAL RESERVE FUNDS 1,984,824 1,439, GALLERY ACQUISITIONS Funding for capital acquisitions for the Gallery is provided through a combination of funds raised by the Gallery Fundraising Committee (Art Acquisition Trust Fund - note 2), special purpose grants received from various government sources and private donations received from Gallery supporters. In 2016, $NIL in art acquisition expenditures were made ($NIL in 2015). 6. IDEA EXCHANGE ARTS ENDOWMENT FUND The Gallery has established the Idea Exchange Arts Endowment Fund at the Ontario Arts Foundation under the terms of the Arts Endowment Fund (AEF) Program. The AEF is a program of the Government of Ontario through the Ministry of Tourism, Culture and Recreation, administered by the Ontario Arts Foundation. Income from the fund will be used for Gallery operating purposes. Market value of the fund as at December 31, 2016 is $286,264 ($274,061 in 2015). 95

101 THE CAMBRIDGE PUBLIC LIBRARY BOARD EXPLANATORY FINANCIAL NOTES For the year ended December 31, OPERATING AND LEASE AGREEMENT WITH THE UNIVERSITY OF WATERLOO (U of W) The Board has in place an operating and lease agreement with the U of W to operate a Gallery of Architecture at the U of W School of Architecture at 7 Melville Street, Cambridge, Ontario. The operating agreement details operational requirements which are provided through the existing Gallery programming. There are no specific ongoing monetary obligations associated with the operating or lease agreements. The agreements end September 1, FEDERAL AND PROVINCIAL SUPPORT GRANTS Library Gallery $ $ Canada Council support grant NIL 72,000 72,000 72,000 Ontario Arts Council support grant NIL 66,500 66,500 70,000 Provincial annual operating grant 161,464 NIL 161, , , , , , SERVICE CONTRACT WITH THE WATERLOO CATHOLIC DISTRICT SCHOOL BOARD (WCDSB) The Board has in place a contractual partnership with the WCDSB to operate a Library Resource Centre at St. Benedict High School. The Library - Clemens Mill Branch, is jointly operated to service both the high school population and the public. Payment in the amount of $126,288 was received in 2016 ($125,616 in 2015) and an obligation to provide services in return for payment of $75,773 exists for the balance of the 2016/2017 school year ($75,773 for 2015/2016). 10. OTHER REVENUE AND OTHER OPERATING EXPENSES The presentation of "Other revenue" and "Other operating expenses" categories has been calculated to eliminate offsetting transactions. Offsetting transactions appearing in the functional operating summary are eliminated from the statement of operations and are detailed below: $ $ OTHER REVENUE Miscellaneous grant revenue (branch services) 16,337 20,532 Miscellaneous grant revenue (gallery) 6,854 NIL Contributions from trust accounts (branch services) 14,352 14,624 37,543 35,156 96

102 THE CAMBRIDGE PUBLIC LIBRARY BOARD EXPLANATORY FINANCIAL NOTES For the year ended December 31, OTHER REVENUE AND OTHER OPERATING EXPENSES (con't) $ $ OTHER OPERATING EXPENSES CDs, materials, large print (branch services) 12,000 12,000 Sundries (branch services) 2,352 2,624 Miscellaneous grant expense (branch services) 2,852 20,532 Materials (branch services) 13,485 NIL Miscellaneous grant expense (gallery) 6,854 NIL 37,543 35, LIBRARY MATERIALS UPGRADING In 1995, the Board commenced a long term Library Materials Upgrading program. In 2016, the source of funding for this program, which totaled $97,000 ($95,000 in 2015), was contributed from the Library Development Charges Reserve Fund and The City of Cambridge. 12. LIABILITY FOR 27TH PAY Each year an accrual is made to provide for a 27th pay period which will occur in the year PENSION PLAN The Ontario Municipal Employees Retirement System (OMERS) provides pension services to more than 460,000 active and retired members and over 1000 employers. Each year an independent actuary determines the funding status of OMERS Primary Pension Plan (the Plan) by comparing the actuarial value of invested assets to the estimated present value of all pension benefits that members have earned to date. The most recently completed actuarial valuation of the Plan was conducted at December 31, The results of this valuation disclosed total actuarial liabilities of $81.9 billion in respect of benefits accrued for service with actuarial assets at that date of $74.9 billion indicating an actuarial deficit of $7 billion. Because OMERS is a multiemployer plan, any pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and their employees. The Board does not recognize any share of the OMERS pension surplus or deficit. Contributions made by the Board to OMERS for 2016 were $337,222 ($362,048 in 2015). 97

103 THE CAMBRIDGE PUBLIC LIBRARY BOARD FUNCTIONAL OPERATING SUMMARY For the year ended December 31, BUDGET $ ACTUAL $ ACTUAL $ REVENUE Administration 506, , ,580 Maintenance of facilities 707, , ,632 Gallery 827, , ,664 Branch services 3,297,400 3,303,181 3,219,985 Digital services 788, , ,853 Programming and promotion 1,025,900 1,036,564 1,035,989 TOTAL REVENUE 7,151,900 7,174,437 6,892,703 EXPENDITURE Administration 506, , ,050 Maintenance of facilities 707, , ,073 Gallery 827, , ,413 Branch services 3,297,400 3,178,960 3,178,944 Digital services 788, , ,938 Programming and promotion 1,025,900 1,024,798 1,004,496 TOTAL EXPENDITURE 7,151,900 7,170,354 6,885,914 EXCESS OF REVENUE OVER EXPENDITURE FOR YEAR NIL 4,083 6,789 FUND BALANCE, BEGINNING OF YEAR 6,789 6,789 6,856 TRANSFER TO OPERATIONS (6,789) (6,789) (6,856) FUND BALANCE, END OF YEAR NIL 4,083 6,789 NOTE: This functional operating summary does not include "Major Project" capital expenditures amounting to $272,081 ($294,871 in 2015) presented in the statement of operations. This functional operating summary includes the offsetting transactions detailed in note

104 THE CAMBRIDGE PUBLIC LIBRARY BOARD DIRECTORY December 31, BOARD OF TRUSTEES CHAIR Mr. Gary Price VICE CHAIRS Ms. Lara Banks Ms. Kathy McKinnon TRUSTEES Mr. Terry Kratz Ms. Amanda Maxwell Mr. David Pinnington Mr. Andrew Shantz Ms. Janice Woynarski Councillor Pam Wolf MANAGEMENT Ms. Helen Kelly B.A., M.L.I.S., Chief Executive Officer 99

105 THE CAMBRIDGE PUBLIC LIBRARY BOARD DIRECTORY December 31, BANKERS Canadian Imperial Bank of Commerce Main and Water St. Cambridge, Ontario N1R 5V5 TD Canada Trust 81 Main Street Cambridge, Ontario N1R 1W1 LAWYERS Pavey, Law & Witteveen LLP 19 Cambridge St., P.O. Box 1707 Cambridge, Ontario N1R 7G8 AUDITORS Graham Mathew Professional Corporation 150 Pinebush Rd. P.O. Box 880 Cambridge, Ontario N1R 5X9 100

106 THE CAMBRIDGE PUBLIC LIBRARY BOARD FUNCTIONAL STATEMENT OF REVENUE AND EXPENDITURE - UNAUDITED Year ended December 31, 2016 ADMINISTRATION BUDGET $ ACTUAL $ ACTUAL $ REVENUE City appropriation (note 3) 474, , ,200 Rent from gallery 30,400 36,371 30,615 Surplus from previous year NIL 6,789 6,856 Sundries 1, , , ,580 EXPENDITURE Salaries 325, , ,054 Benefits 83,000 78,522 72,672 Retiree life insurance 5,000 5,000 5,000 Advertising 3,200 2,251 5,186 Purchased services 1,000 4,135 4,240 Professional fees 7,500 10,748 10,932 Memberships and subscriptions 12,800 13,073 12,717 Training and development 15,000 20,692 22,663 Office supplies 7,400 7,686 6,678 Travel expense 4,000 1,455 1,761 Telephone 11,500 12,237 11,086 Insurance 13,600 13,600 13,300 27th Pay contribution (note 12) 11,000 11,000 7,700 WSIB schedule II contributions (note 3) 2,000 2,000 2,000 Sundries 3,200 40,213 30, , , ,050 EXCESS OF REVENUE OVER EXPENDITURE (EXPENDITURE OVER REVENUE) FOR THE YEAR NIL (15,821)

107 THE CAMBRIDGE PUBLIC LIBRARY BOARD FUNCTIONAL STATEMENT OF REVENUE AND EXPENDITURE - UNAUDITED Year ended December 31, 2016 MAINTENANCE OF FACILITIES BUDGET $ ACTUAL $ ACTUAL $ REVENUE City appropriation (note 3) 653, , ,400 Contract revenue - WCDSB (note 9) 6,300 6,450 6,300 Revenue from gallery 6,200 2,000 3,475 Rent from gallery 40,700 44,805 39,457 Contribution from facility maintenance reserve (note 4) NIL NIL NIL 707, , ,632 EXPENDITURE Salaries 238, , ,616 Benefits 61,700 60,873 63,346 Cleaning supplies 11,700 17,794 15,588 Lighting supplies 7,400 6,813 5,418 Snow removal 11,600 28,700 6,284 Dust control 5,000 7,392 5,766 Gas 26,000 15,297 23,988 Hydro and water 176, , ,352 Building and equipment maintenance 120, , ,541 Maintenance contracts 32,300 26,820 26,301 Travel 2,700 3,339 2,372 Fire alarm 4,600 4,665 2,701 Sundries NIL Contribution to facility maintenance reserve (note 4) 8,800 85,800 48, , , ,073 EXCESS OF EXPENDITURE OVER REVENUE FOR THE YEAR NIL (184,082) (74,441) 102

108 THE CAMBRIDGE PUBLIC LIBRARY BOARD FUNCTIONAL STATEMENT OF REVENUE AND EXPENDITURE Year ended December 31, 2016 GALLERY BUDGET $ ACTUAL $ ACTUAL $ REVENUE City appropriation (note 3) 564, , ,800 Provincial support grant (note 8) 66,500 66,500 70,000 Federal support grant (note 8) 72,000 72,000 72,000 Other grants (note 10) NIL 6,854 NIL Admission fees and tuition 30,000 19,167 23,928 Memberships 8,600 2,110 3,701 Fundraising 30,000 39,861 28,711 Musical performance donation (note 2) Special events 42,500 35,526 35,789 Art endowment fund income 10,000 13,095 11,265 Sundries 3,000 2,055 5, , , ,664 EXPENDITURE Salaries 383, , ,970 Benefits 79,300 77,354 79,308 Programs/exhibitions 112,800 93, ,960 Fundraising 14,000 19,013 15,834 Education 32,000 22,663 27,366 Special events 34,100 33,117 33,116 Lectures 2,100 2, Concert series 2,100 1,625 2,089 Rent and overhead 100, ,668 99,224 Security 1, Equipment and collection maintenance 8,300 6,715 5,110 Office supplies and postage 17,500 14,867 19,191 Advertising 25,500 25,979 19,028 Travel 2,400 2,860 2,528 Telephone 2,900 2,876 2,781 Insurance 5,900 5,900 5,800 Sundries 2,700 2,350 2,648 Art acquisitions (note 5) NIL NIL NIL Art acquisition trust (note 2) NIL 23,500 NIL Miscellaneous grant expense (note 10) NIL 6,854 NIL 827, , ,413 EXCESS OF EXPENDITURE OVER REVENUE FOR THE YEAR NIL (807) (1,749) 103

109 THE CAMBRIDGE PUBLIC LIBRARY BOARD FUNCTIONAL STATEMENT OF REVENUE AND EXPENDITURE - UNAUDITED Year ended December 31, 2016 BRANCH SERVICES BUDGET $ ACTUAL $ ACTUAL $ REVENUE City appropriation (note 3) 2,759,900 2,759,900 2,669,000 Provincial annual grant (note 8) 161, , ,464 Other provincial grants (note 10) 13,000 13,485 16,084 Other grants (note 10) NIL 2,852 4,448 Fines 120, , ,104 Best sellers 6,100 4,207 4,471 Payment for lost or damaged materials 12,900 12,417 13,234 Printing and photocopying 13,200 14,965 14,713 Contract revenue - WCDSB (note 9) 94,700 94,658 94,214 Sundries 7,200 11,400 9,629 Contribution from capital (note 11) 97,000 97,000 95,000 Contribution from trust (note 2 and note 10) 12,000 14,352 14,624 3,297,400 3,303,181 3,219,985 EXPENDITURE Salaries 2,203,900 2,108,411 2,097,712 Benefits 430, , ,509 Summer employment program 17,500 12,383 15,055 Best sellers 6,100 3,577 3,855 CDs 11,800 11,512 11,823 DVDs 28,300 32,457 32,362 Periodicals and newspapers 43,800 51,202 44,457 Materials 400, , ,747 Materials processing 110, , ,506 Supplies 7,900 8,708 11,349 Postage 9,500 9,333 9,594 Delivery service 20,300 19,582 19,293 Membership cards 3,800 4,142 3,966 One book one community 1, Travel 1, ,268 Other grant expense (note 10) NIL 2,852 20,532 Sundries 300 4,854 3,974 Material reserve (note 4) NIL NIL 40,000 3,297,400 3,178,960 3,178,944 EXCESS OF REVENUE OVER EXPENDITURE FOR THE YEAR NIL 124,221 41,

110 THE CAMBRIDGE PUBLIC LIBRARY BOARD FUNCTIONAL STATEMENT OF REVENUE AND EXPENDITURE - UNAUDITED Year ended December 31, 2016 DIGITAL SERVICES BUDGET $ ACTUAL $ ACTUAL $ REVENUE City appropriation (note 3) 739, , ,600 Rent from gallery 23,500 23,492 23,151 Contract revenue - WCDSB (note 9) 25,300 25,180 25, , , ,853 EXPENDITURE Salaries 438, , ,675 Benefits 111,600 99,744 98,381 Computer maintenance hardware 41,000 33,125 29,571 Computer maintenance software 95,000 86,360 65,075 Computer maintenance connectivity 67,500 65,081 57,612 Office supplies 1,600 1, Minor capital 32,100 26,491 21,851 Travel 1,300 1,513 1, , , ,938 EXCESS OF REVENUE OVER EXPENDITURE FOR THE YEAR NIL 68,806 9,

111 THE CAMBRIDGE PUBLIC LIBRARY BOARD FUNCTIONAL STATEMENT OF REVENUE AND EXPENDITURE - UNAUDITED Year ended December 31, 2016 PROGRAMMING AND PROMOTION BUDGET $ ACTUAL $ ACTUAL $ REVENUE City appropriation (note 3) 1,014,700 1,014,700 1,025,400 Programming revenue NIL 10,327 NIL Revenue from gallery 5,200 5,537 4,589 Rent from gallery 6,000 6,000 6,000 1,025,900 1,036,564 1,035,989 EXPENDITURE Salaries 673, , ,300 Benefits 152, , ,879 CDs 3,600 3,517 2,947 DVDs 13,100 13,392 14,276 Materials 118, , ,529 Advertising 22,300 20,714 20,996 Printing 10,000 10,896 8,159 Programming 23,100 31,362 21,087 Office supplies 7,100 7,368 5,707 Volunteer program 1, ,413 Travel 1,100 2,020 2,203 1,025,900 1,024,798 1,004,496 EXCESS OF REVENUE OVER EXPENDITURE FOR THE YEAR NIL 11,766 31,

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151 BOARD OF MANAGEMENT OF DOWNTOWN CAMBRIDGE BUSINESS IMPROVEMENT AREA FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,

152 BOARD OF MANAGEMENT OF DOWNTOWN CAMBRIDGE BUSINESS IMPROVEMENT AREA DECEMBER 31, 2016 CONTENTS Page Independent Auditors' Report 1 Financial Statements Statement of Operations 2 Statement of Net Assets 2 Financial Position 3 Statement of Cash Flows 4 Explanatory Financial Notes

153 INDEPENDENT AUDITORS' REPORT To the Board of Management, Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Cambridge We have audited the accompanying financial statements of Board of Management of Downtown Cambridge Business Improvement Area which comprise the statement of financial position as at December 31, 2016, and the statements of operations, net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Board of Management of Downtown Cambridge Business Improvement Area as at December 31, 2016, and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Cambridge, Ontario March 31, 2017 Chartered Professional Accountants, authorized to practise public accounting by the Chartered Professional Accountants of Ontario 148

154 BOARD OF MANAGEMENT OF DOWNTOWN CAMBRIDGE BUSINESS IMPROVEMENT AREA STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, Budget $ Actual $ Actual $ (Unaudited) Revenue Taxation levy, City of Cambridge (note 1b) 176, , ,416 Other 42,000 35,893 30,311 Total revenue 218, , ,727 Expenditure Occupancy costs Rent (note 5) 5,400 5,227 5,217 Insurance 1,800 1,637 1,677 Utilities and telephone 1,500 6,289 5,967 Repairs and maintenance 3, Office supplies and equipment 3,146 3,362 2,324 CCAP program (note 3) 9,250 9,250 9,250 24,566 25,839 24,500 Payroll and contract services Salaries and benefits 62,478 59,260 54,328 Outside labour 5,000 4,345 4,317 Janitorial services 19,500 19,867 17,107 86,978 83,472 75,752 Other Sponsorships and memberships 69,616 57,974 50,561 Advertising and promotion 14,910 9,288 19,884 Conferences and meetings 2,500 2,147 1,822 Professional fees 2,000 2,000 2,000 Beautification 18,000 17,335 14,312 Bank charges, interest and penalties 100 1,856 1, ,126 90,600 90,463 Total expenditure 218, , ,715 Excess of revenue over expenditure for year NIL 16,750 3,012 STATEMENT OF NET ASSETS YEAR ENDED DECEMBER 31, 2016 Balance, beginning of year 33,792 30,780 Excess of revenue over expenditure for year 16,750 3,012 Balance, end of year 50,542 33,792 The explanatory financial notes form an integral part of these financial statements

155 BOARD OF MANAGEMENT OF DOWNTOWN CAMBRIDGE BUSINESS IMPROVEMENT AREA ASSETS FINANCIAL POSITION DECEMBER 31, $ $ Cash 36,232 35,006 Accounts receivable, net (note 4) 11,499 1,961 HST rebate receivable 11,749 11,588 59,480 48,555 LIABILITIES Accounts payable and accrued liabilities 7,603 9,331 Accounts payable, City of Cambridge 1,335 5,432 8,938 14,763 NET ASSETS Net assets 50,542 33,792 59,480 48,555 APPROVED BY THE BOARD: Board Member Board Member The explanatory financial notes form an integral part of these financial statements

156 BOARD OF MANAGEMENT OF DOWNTOWN CAMBRIDGE BUSINESS IMPROVEMENT AREA STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, $ $ Cash flows from operating activities: Excess of revenue over expenditure for year 16,750 3,012 Net change in non-cash working capital balances relating to operations: Accounts receivable ( 9,538) ( 1,961) HST rebate receivable ( 161) ( 2,175) Prepaid expenses 1,569 Accounts payable and accrued liabilities ( 1,728) 1,086 Payable to City of Cambridge ( 4,097) 4,871 Net increase in cash 1,226 6,402 Cash, beginning of year 35,006 28,604 Cash, end of year 36,232 35,006 The explanatory financial notes form an integral part of these financial statements