the corporation town of bracebridge consolidated financial

The Corporation of theTown of BracebridgeConsolidated Financial StatementsFor the year ended December 31, 2016

Contents

Independent Auditor's Report 2

Consolidated Financial StatementsConsolidated Statement of Financial Position 3Consolidated Statement of Operations 4Consolidated Statement of Changes in Net Financial Assets 5Consolidated Statement of Cash Flows 6Summary of Significant Accounting Policies 7Notes to Consolidated Financial Statements 11Schedule of Town of Bracebridge Public Library Board Operations 26Schedule of Trust Fund Balances and Continuity 27

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Independent Auditor's Report

To the Members of Council, Residents and Ratepayers ofThe Corporation of the Town of Bracebridge

We have audited the accompanying consolidated financial statements of The Corporation of theTown of Bracebridge, which comprise the consolidated statement of financial position as atDecember 31, 2016, and consolidated statements of operations, changes in net financial assetsand cash flows for the year then ended, and a summary of significant accounting policies andother explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidatedfinancial statements in accordance with Canadian public sector accounting standards, and forsuch internal control as management determines is necessary to enable the preparation ofconsolidated financial statements that are free from material misstatement, whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based onour audit. We conducted our audit in accordance with Canadian generally accepted auditingstandards. Those standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the consolidated financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the municipality's preparation andfair presentation of the consolidated financial statements in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion onthe effectiveness of the municipality's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimatesmade by management, as well as evaluating the overall presentation of the consolidatedfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, thefinancial position of The Corporation of the Town of Bracebridge as at December 31, 2016, andthe results of its operations and its cash flows for the year then ended in accordance withCanadian public sector accounting standards.

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Chartered Professional Accountants, Licensed Public Accountants

_Bracebridge, OntarioMay 25, 2017

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The Corporation of the Town of BracebridgeConsolidated Statement of Financial Position

December 31 2016 2015

Financial assetsCash 35 2,085,571 35 4,434,875Restricted cash (Note 1) 1,337,382 1,717,686Temporary investments (Note 2) 6,126,714 3,029,264Taxes receivable (Note 3) 2,730,601 3,407,577Trade and other receivables 2,803,708 1,395,594l,ong—tern'ireceivables (Note 4) 1,724,738 1,656,395investment in government business enterprise (Note 5) 25 340 609 23,788,160

*—¥.~

42149 323 39,429,551

LiabilitiesTemporary borrowings (Note 6) 717,000 717,000Accounts payable and accrued liabilities 4,726,269 4,473,483Tax revenue received in advance 1,077,853 1,034,308Pensions and other employee benefits 8,623 10,831Deferred revenue (Note 7) 1,424,805 1,785,383Long—termliabilities(Note 8) 4,760,248 5,161,073

12,714,798 13,182 078

Net financial assets 29,434,525 26,247,473

Non-financial assetsTangible capital assets (Note 9) 68,082,011 67,131,492inventories of supplies 220,950 198,198Prepaid expenses 35,860 27,864

68,338,821 67,357,554

Accumulated sur lus Note 10 $ 97,773,346 $ 93,605,027

On behalf/ofouncil:

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Theaccompanyingsummaryof significantaccountingpoliciesand notesarean integralpartofthese linancialstatements3

The Corporation of the Town of BracebridgeConsolidated Statement of Operations

(Note 12)Budget Actual ActualFor the year ended December 31 2016 2016 2015

RevenueTaxation (Note 13) 8 13,289,816 $ 13,245,745 $ 12,426,121Fees and user charges 2,825,000 3,012,398 2,998,137Government transfers — Federal (Note 14) 1,029,975 1,028,990 390,529Government transfers ~ Ontario (Note 14) 2,297,565 3,005,431 2,963,324income from government business

enterprise (Note 5) 844,700 2,467,626 2,295,901interest income 109,000 163,927 121,846interest and penalties on tax arrears 540,000 492,261 553,717Other income (Note 15) 391,400 495,956 302,683

21,327,466 23,912,334 22,052,258

Expenses (Note 16)Recreation and culture 5,978,750 5,952,468 5,624,253Planning and development 2,440,955 2,261,368 2,076,991Protection to persons and property 1,380,940 1,345,068 1,297,591Transportation and roadways 7,613,970 7,806,150 7,465,691General government 2,585,050 2,378,961 2,428,165

19,999,665 19,744,015 18,892,691

Annualsurplus 1,327,791 4,168,319 3,159,567

Accumulated surplus, beginning of year 93,605,027 93,605,027 90,445,460

Accumulated surplus,end ofvear $ 94,932,818 $ 97,773,3463593,605,027

Theaccompanyingsummaryofsignificantaccountingpoliciesandnotes are an integralpartof thesefinancialstatements4

The Corporation of the Town of BracebridgeConsolidated Statement of Changes in Net Financial Assets

(Note 12)Budget Actual Actual

For the year ended December 31 2016 2016 2015

Annual surplus 35 1,327,791 $ 4,168,319 $ 3,159,567Acquisition of tangible capital assets (10,591,450) (5,377,241) (5,368,896)Amortization of tangible capital assets 4,200,000 4,422,968 4,218,079Gain on disposal of tangible capital assets — (5,583) (24,087)Proceeds on disposal of tangible capital assets — 9,337 24,087

(5,063,659) 3,217,800 2,013,750

Acquisition of supplies inventory — (22,752) (13,514)Consumption of prepaid expenses — (7,996) 31 ,962

— (30,748) 18,448

increase (decrease) in net financial assets (5,063,659) 3,187,052 2,032,198

Net financial assets, beginning of year 26,247,473 26,247,473 24,215,275

Net financial assets, end ofxear $ 21,183,814 $ 29,434,525$ 26,247,473

Theaccompanyingsummaryofsignificantaccountingpoliciesand notes are an integralpartof thesefinancialstatements5

The Corporation of the Town of BracebridgeConsolidated Statement of Cash Flows

For the year ended December 31

Operating transactionsAnnual surplus

Non~cash itemsincome from enterprise (Note 5)Amortizationof tangible capital assetsGain on disposal of tangible capital assets

Changes in non-cash assets and liabilitiesTaxes receivableTrade and other receivablesLong»term receivablesAccounts payable and accrued liabilitiesTax revenue received in advancePensions and other employee benefitsDeferred revenueInventories of suppliesPrepaid expenses

Capital transactionsProceeds on disposal of tangible capital assetsCash used to acquire tangible capital assets

Investing transactionsDividend received from government business enterprise

Financing transactionsDebt repayment

increase in cash and cash equivalentsCash and cash equivalents, beginning of year

2016 2015

$ 4,168,319 35 3,159,567

(2,467,626) (2,295,901)4,422,968 4,216,079

(5,563) (24,067)6,118,078 5,057,658

676,976 492,213(1,408,114) (495,336)

(68,343) 297,309252,737 755,353

43,545 102,311(2,208) (13,692)19,726 (614,496)

(22,752) (13,514)(7 997) 31,962

5 601,698 5,589,766

9,337 24,087t5,377,241) t5,363,896)

(5,357,904) t5,339 809)

915177 747,939

t400,825l 382,069

748,146 615,827

7464,1139 6,848,312

Cash and cash eguivalentszend of year $ 8,212 285 $ 7,464,139

Represented byCashTemporary investments

35 2,085,571 $ 4,434,8756,126,714 3,029,264

__:__......__._._.._.___._.._..__.

$ 8,212285 $ 7,464,139¢:—:—::

Supplementary InformationDuring the year, the municipalitypaid cash interest in the amount of $254,084 (2015 « $272,841).

Theaccompanyingsummaryofsignificantaccountingpoliciesand notesarean integralpartof thesefinancialstatements6

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The Corporation of the Town of BracebridgeSummary of Significant Accounting Policies

December 31, 2016

Management's Responsibilityfor the Financial Statements The consolidated financial statements of The Corporation of the

Town of Bracebridge ("Municipality") are the responsibility ofmanagement, They have been prepared in accordance withCanadian public sector accounting standards. The Corporationof the Town of Bracebridge is a municipality in the province ofOntario. The municipality provides services such as generalgovernment services, protection to persons and property,transportation and roadways, recreation, public works, planningand development, parks and recreation.

Reporting Entity The reporting entity includes the Municipality and all entitiesthat are controlled by the Municipality.

All controlled entities are consolidated in the Municipality'sfinancial statements according to the Municipality's percentageownership except for entities that meet the definition of agovernment business enterprise or a government businesspartnership, which are included in the financial statements on amodified equity basis. lnter—organizational balances andtransactions are eliminated upon consolidation.

Entities fully consolidated in the Municipality's financialstatements include:

Bracebridge Public Library Board « 100%Business Improvement Area Board — 100%

Under the modified equity method of accounting, only theMunicipality's investment in the entity and the Municipality'sportion of the entity’s net income and other changes in equityare recorded. No adjustment is made for accounting policies ofthe entity that are different from those of the Municipality andinter-organizational balances and transactions are noteliminated.

Entity's accounted for on a modified equity basis include:

Lakeland Holding Ltd. (Note 5) — 56.31%

Basis of Accounting The financial statements have been prepared using Canadianpublic sector accounting standards.

Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, bankbalances and temporary investments having a maturity of lessthan three months from date of acquisition and are held for thepurpose of meeting short—termcash commitments.


December 31, 2016

Deferred Revenue Revenue restricted by legislation, regulation or agreement andnot available for general municipal purposes is reported asdeferred revenue on the consolidated statement of financialposition. The revenue is reported on the consolidatedstatement of operations in the year in which it is used for thespecified purpose.

Post Retirement Benefits The Municipality is an employer member of the OntarioMunicipal Employees Retirement System (OMERS), which is amulti~employer, defined benefit pension plan. The Board ofTrustees, representing plan members and employers, isresponsible for overseeing the management of the pensionplan, including investment of the assets and administration ofthe benefits. The Municipality has adopted defined contributionplan accounting principles for this Plan because insufficientinformation is available to apply defined benefit plan accountingprinciples.

The Municipality also provides certain extended health benefitsto qualifying employees through an insurance provider whichinvoices the Municipality for the cost of the plan. The cost isrecognized based on management's best estimate of the futurepremiums associated with these benefits.

Non-financial Assets Non-financial assets are used to provide the Municipality’sservices in future periods. These assets do not normallyprovide resources to discharge the liabilitiesof the Municipalityunless they are sold. The Municipality‘-s non—financial assetsinclude tangible capital assets, inventories held forconsumption or use and prepaid expenses.

inventories held for Use inventories of supplies held for consumption are recorded atthe lower of cost and net realizable value.

December 31, 2016

Tangible Capital Assets

Leases

District and School Boards

Trusts Under Administration

Government Transfers


Tangible capital assets are recorded at cost less accumulatedamortization. Cost includes all costs directly attributable toacquisition or construction of the tangible capital asset includingtransportation costs, installation costs, design and engineeringfees, legal fees and site preparation costs. Contributed tangiblecapital assets are recorded at fair value at the time of thedonation, with a corresponding amount recorded as revenue.Amortization is recorded on a straight—line basis over theestimated life of the tangible capital asset commencing oncethe asset is available for productive use as follows:

BuildingsTransportation infrastructureRecreation areasFleetEquipment

30 to 40 years5 to 50 years

10 & 20 years5 years

4 to 25 years

Leases are classified as capital or operating leases. Leaseswhich transfer substantially all of the benefits and risksincidental to ownership of property are accounted for as capitalleases. All other leases are accounted for as operating leasesand the related lease payments are charged to expenses asincurred.

The Municipality collects taxation revenue on behalf of theschool boards and the District Municipality of Muskoka. Thetaxation, other revenues, expenses, assets and liabilities withrespect to the operations of the school boards and the DistrictMunicipalityof Muskoka are not reflected in these consolidatedfinancial statements.

Trusts administered by the Municipality are not included inthese consolidated financial statements.

The financial activity and position of the trust funds are reportedseparately on the schedule of trust funds balances and trustfunds statement of continuity (Page 27).

Government transfers are recognized as revenue in theconsolidated financial statements when the transfer isauthorized and eligibility criteria are met, except to the extentthat transfer stipulations give rise to an obligation that meetsthe definition of a liability.Transfers are recognized as deferredrevenue when transfer stipulations give rise to a liability.Transfer revenue is recognized in the consolidated statement ofoperations as the stipulation liabilities are settled.

December 31,2016

Taxation Revenue

Revenue Recognition


Taxes are recorded at estimated amounts when they meet thedefinition of an asset, have been authorized and the taxableevent occurs. For property taxes, the taxable event is theperiod for which the tax is levied. As taxes recorded are initiallybased on managements best estimate of the taxes that will bereceived, it is possible that changes in future conditions, suchas requests for reconsideration, appeals to the assessmentreview board or any other adjustments allowed by legislation,could result in a change in the amount of tax revenuerecognized. Taxes receivable are recognized net of anallowance for anticipated uncollectable amounts

Revenues are recognized in the period in which thetransactions or events occurred that gave rise to the revenues.All revenues are recorded on an accrual basis.

Revenue related to fees or services received in advance of thefee being earned or when the service is performed is deferredand recognized when the fee is earned or the service isperformed.

The Municipalityis entitled to collect interest and penalties onoverdue taxes. These revenues are recorded in the period theinterest and penalties are levied.

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The Corporation of the Town of BracebridgeNotes to Consolidated Financial Statements

December 31, 2016

1. Restricted Cash

2016 2015

Obligatory reserve fundsDevelopment Charges Act $ 1,159,615 $ 983,942Subdivider contributions for parkland 21,033 54,471Federal gas tax 156,734 679,273

$ 1,337,382 35 1,717,686

2. Temporary investments

2016 2015

One investment Program — bond funds, at cost $ 6,126,714 39 3,029,264.:_._..................:........

Temporary investments have a market value of $6,053,696 (2015 — $3,029,264) at the end ofthe year.

The One Investment Program funds are held for the purpose of meeting short«term cashcommitments.

3. Taxes Receivable

In addition to levying and collecting the Municipality's taxes, the Municipality is responsible forlevying, collecting and remitting taxes imposed by School Boards and the District Municipalityof Muskoka.

2016 2015

Taxes receivable $ 3,086,899 $ 3,764,502Less: allowance for anticipated tax adjustments (356,298) (356,925)

$ 2,730,601 $ 3,407,577

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.The Corporation of the Town of Bracebridge

Notes to Consolidated Financial Statements

December 31,2016

4‘ Long—Term Receivables

Long—termreceivables are comprised of four amounts as follows:

The first amount relates to an agreement with the Bracebridge Arts Council related to financingof the construction costs of the community theatre component of the community recreationcomplex capital project. There are no fixed terms of repayment and the balance is non~interestbearing. The Bracebridge Arts Council has agreed to repay the outstanding balance fromcapital fundraising proceeds, a ticket surcharge and net revenues of the theatre operations.Due to the amount of the balance currently outstanding and considering historical paymentpatterns of the Bracebridge Arts Council, the Municipality will establish an offsetting allowance,should a portion of the balance be deemed uncollectible at some point in the future.The second amount relates to the Community improvement Program whereby the Municipalityadvances businesses amounts which are one half grant and one half loan, with the loancomponent to be repaid over five years.

The third amount is a long-term receivable from Fowler Construction Company Limited inrespect of services to be constructed for the South Bracebridge Industrial Park (SBIP), nowknown as Canyon Court Business Park, secured by first mortgage on SBlP lands and othercustomary real estate security. Repayment terms are in accordance with the Loan Agreementexecuted November 29, 2012 as amended January 24, 2013. Loan interest at prime less075% is due monthly, with the loan maturing July 1, 2017.

The remainder of the balance is local improvement charges receivable from ratepayers at$4,823 annually, maturing 2017.

2016 2015

Bracebridge Arts Council 21; 877,802 $ 880,847Community improvement program 125,113 48,901Fowler Construction Company Limited (Note 6) 717,000 717,000Local improvements 4 823 9,647

$ 1,724,738 $ 1,656,395nninj--an-n-1-:-n--nu-nu:

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December 31,2016

5. Investment in Government Business Enterprise

The Corporation of the Town of Bracebridge owns 56.31% of the common shares of LakelandHolding Ltd. (the "Company"). The Company is a government business enterprise and isaccounted for using the modified equity method in these consolidated financial statements.The Company and its subsidiaries are incorporated under the laws of Ontario and togetherthey generate, sell and distribute hydro electric power and other retail services to users inBracebridge, Huntsville,Sundridge, Burks Falls and Magnetawan, Ontario.

The following is condensed supplementary financial information for the Company and TheCorporation of the Town of Bracebridge portion of the Company for the years endedDecember 31, 2016 and December 31, 2015.

Current assetsProperty and equipmentOther assets

LiabilitiesShareholders’ equity

RevenuesExpensesOther comprehensive income (loss)

Net income for the year

Lakeland The Corporation of theHolding Ltd. Town of Bracebridge Portion

2016 2016 2015

$ 20,074,484 11,303,942 $ 8,156,50478,461,530 44,181,688 36,532,239

7,627,260 4,294,910 2,310,399

$106,163,274 59,780,540 $ 46,999,142

$ 61,161,305 34,439,931 $ 23,210,98245,001,969 25,340,609 23,788,160

$106,163,274 59,780,540 $ 46,999,142

2556,047,571 31,550,387 9 30,396,13851,818,408 29,178,946 28,118,819

152,976 86,185 18,582

$ 4,382,139 2,467,626 $ 2,295,901

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December 31, 2016

6. Temporary Borrowings

The Municipalityhas an operating demand facility agreement with Scotiabank. The amountavailable under the facility is $5,000,000 to finance general operating requirements, Theinterest rate on this facility is prime less 0.75%. At December 31, 2016, the Municipality hadnot drawn on this facility.

The Municipality also has a $2,000,000 revolving demand facility agreement to providefinancing for the construction and provision of various municipal capital facilities for the SouthBracebridge Industrial Park, now known as the Canyon Court Business Park. The interest rateon this facility is prime less 075% and is payable monthly. The outstanding amount isrepayable in full on or before March 2019. At December 31, 2016, the Municipality has drawn$717,000 (2015 ~ $717,000) on this facility. The facility relates wholly to the long~termreceivable due from Fowler Construction Company Limited (Note 4)

Deferred Revenue

Deferred revenue arises when externally restricted amounts are received in advance and havenot been fully expended for the specified purposes.

Deferred grant revenue arises when grants received are conditional upon eligible expensesbeing incurred and where amounts received in advance have not been fully expended oneligible expenses.

The balance of deferred revenue reported on the consolidated statement of financial position ismade up of the following:

2016 2015

Deferred revenueFuture road construction and sidewalks $ 34 859 $, 34,859

Deferred grant revenueOther 52 564

2 32,838

Deferred revenue - obligatory reserve fundsDevelopment Charges Act 1,159,615 983,942Subdivider contributions 21,033 54,471Federal gas tax 156,734 679,273

1 337 382I 1,717,686

$ 1,424,805 $ 1,785,3832-:uaun«u—-nu-uuun--um-u-nun:

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December 31, 2016

7. Deferred Revenue (continued)

The net change during the year in the obligatory reserve fund balances is made up as follows:

Development Subdivider FederalCharges Act Contributions Gas Tax

Obligatory reserve funds, beginning of year 35 983,942 $ 54,471 $ 679,273Funds received during the year 204,327 16,162 468,635Interest earned 11,346 400 4,426Revenue recognized during the year (40,000) (50,000) (995,600)

Obligatory reserve funds, end of year $ 1,159,615 $ 21,033 $ 156,734g

The Development Charges Act and Federal Gas Tax funds recognized during the year areincluded in the consolidated statement of operations as other income and governmenttransfers — Federal respectively.

The above funds held as deferred revenue are restricted in their use by their respectivelegislation.

December 31,2016

8. Long-Term Liabilities


The balance of long—termliabilities reported on the consolidated statement of financial positionis made up of the following:

Debenture payable — District Municipality of Muskoka,payable $197,107 semi~annually including interest at4.876%, due December 2025

Debenture payable — District Municipalityof Muskoka,payable $122,955 semi-annually including interest at5.34%, due July 2026

Loan payable ~ District Municipality of Muskoka,payable $14,785 annually, non—interestbearing, dueNovember 2018

2016 2015

$ 2,844,332 $ 3,090,806

1,886,346 2,025,912

29,570 44,355

$ 4,760,248 $ 5,161,073——j—..———..———._.._—-

Long—termdebt payments for the next five years and thereafter are due as follows:

Year20172018201920202021Thereafter

Gross Interest Net654,909 $ 234,367 420,542654,909 213,641 441,268640,125 191,855 448,270640,125 168,953 471,172640,124 144,878 495,246

2,806,412 322,662 2,483,750

$ 6,036,604 $ 1,276,356 $ 4,760,248

The annual principal and interest payments required to service the long-term liabilities of themunicipality are within the annual debt repayment limit prescribed by Section 407 (2) of theMunicipal Act, 2001.

16

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December 31, 2016

10. Accumulated Surplus

The Municipality segregates its accumulated surplus in the following categories:

2016 2015

ReservesBusiness improvement area $ 72,799 35 75,775Cemeteries 87,805 122,797Development services 432,935 446,900Emergency and protective services 4,941 398,414General government 620,624 199,290Library and other facilities 231,969 168,181Major infrastructure 2,150,384 1,689,019Other 646,854 648,339Public works 1,778,712 1,791,106Recreation, parks and trails 454,280 364,116Tax rate stabilization 3,431,292 2,898,816Amounts self—financedfrom reserves 12103,543) §2,369,443)

7,809,052 6,433,310

Net equity in Lakeland Holding Ltd. 25,340,609 23,788,160Investment in tangible capital assets 68,082,011 67,131,492Amounts to be recovered (Note 17) (4,768,871) (5,171,904)Accumulated surplus 1,310 545 1,423,969

$ 97,773,346 3393,605,027——._.__————.———__

The investment in tangible capital assets represents amounts already spent and invested ininfrastructure and other non—financialassets.

Reserves represent funds set aside by bylaw or council resolution for specific purposes.

11. Contingencies

As a part of the ongoing operations of the The Corporation of the Town of Bracebridge, claimsrequesting damages are filed against the municipality. The ultimate outcome of these claimsare not determinable at the time of issue of these consolidated financial statements. Noprovision for these claims has been recorded in these consolidated financial statements.Settlements in excess of insurance, if any, will be reflected in the period in which settlementoccurs. Management is of the opinion that adequate insurance coverage is in place for alloutstanding matters, should the municipality be tound liable.

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The Corporation of the Town of Brace-bridgeNotes to Consolidated Financial Statements

December 31, 2016

12. Budget

The Budget was adopted by Council on March 15, 2016 and confirming by—law2016-020 waspassed on the same date. The budget was prepared on a modified accrual basis while PublicSector Accounting Standards now require a full accrual basis. Council has reviewed andapproved the 2016 Report on Excluded Expenses as required by Ontario Regulation 284/09which expressly permits municipalities to exclude amortization expense from the budget. Thebudget approved by council represents a balanced budget from a cash flow perspective andtherefore includes budgeted transfers from prior year's reserves and reduction of long-termdebt. In addition, the budget expensed all tangible capital expenses rather than includingamortization expense. As a result, the budget figures presented in the consolidatedstatements of operations and change in net financial assets represent the Financial Planadopted by Council on March 15, 2016 with adjustments as follows:

2016

Budget surplus for the year $ -

Add:Capital expenses 10,591,450Debt repayment 400,840Transfers to reserve funds 1,495,626Self~finance transactions 265,900

Less:Amortization (4,200,000)Debenture proceeds (3,500,000)Transfers from reserve funds (3,726,025)

Budget surplus per statement of operations 55 1,327,791

Under Canadian public sector accounting standards, budget amounts are to be reported onthe consolidated statement of operations for comparative purposes. The 2016 budget amountsfor the The Corporation of the Town of Bracebridge approved by Council have been restated toconform to the basis of preparation of the revenues and expenses on the consolidatedstatement of operations.

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December 31, 2016

13. Operations of School Boards and the District Municipality of Muskoka

During the year, the following taxation revenue was levied and remitted to the school boardsand the DistrictMunicipalityof i\/luskoka:

TaxationTaxation from other governmentsLess: school board requisitionsLess: upper tier requisitions

2016 2015

5534,050,691 $ 32,934,338180,849 175,771

(6,941,494) (7,008,730)(14,044,301) (13,675,249)

$ 13,245,745 $ 12,426,121n

14. Government Transfers

Revenue:Federal gas tax fundOther federal grants

Total federal grants

Ontario municipal partnership fundProvincial operating grant — libraryOntario disaster relief assistance programOther provincial grants

Total provincial grants

Expenses:Community grants and support

2016 2015

$ 995,600 $ 301 ,91133,390 88,618

1,028,990 390,529

1,529,800 1,470,00035,869 36,696

386,858 1,008,9821,052,904 447,646

3 005 431, 2,963 324

$ 4,034i421$ 3,353,853

$ 163,874 $ 151,144

The government transfer expenses have been included in planning and development andgeneral government expenses in the statement of operations.

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December 31, 2016

15. Other income

(Note 12)BLidget Actual Actual

2016 2016 2016

Donations $ 39,700 $ 123,780 $ 99,260Gain on disposal of tangible capital assets 1,500 5,583 24,087Obligatory reserve funds revenue recognized 90,000 90,000 15,651Other 29,200 42,617 57,088Rental 141,400 140,451 84,098Sale of land and other assets 89,600 93,525 22,499

$ 391,400 $ 495,956 $ 302,683m_

16. Expenses by Object

Total operating expenses for the year reported on the consolidated statement of operationsare as follows:

(Note 12)Budget Actual Actual

2016 2016 2015

Salaries, wages and employee benefits 55 7,879,868 $ 7,843,167 $ 7,451,351Materials 6,433,157 6,365,227 6,072,880Contracted services 1,232,550 862,629 879,896interest on long~terrn debt 254,090 250,023 270,485Amortization 4,200,000 4,422,969 4,218,079

$ 19,999,665 $ 19,744,015 $ 18,892,691__

17. Amounts to be Recovered

2016 2015

Capital outlay financed by long—term liabilities and to berecovered in future years

Post—employment benefits3% 4,760,248 $ 5,161,073

8623 10,831_.__j..L_.__._..._..._.:—._..._

$ 4,768,871$ 5,171,904

21

&2


December 31, 2016

18. Post Retirement Benefits

OMERS provides pension services to more than 470,000 active and retired members andapproximately 1,000 employers. Each year an independent actuary determines the fundingstatus of OMERS Primary Pension Plan (the Plan) by comparing the actuarial value of investedassets to the estimated present value of all pension benefits that members have earned todate. The most recent actuarial valuation of the Plan was conducted at December 31, 2016.The results of this valuation disclosed total actuarial liabilities of $87,554 million in respect ol‘benefits accrued for service with actuarial assets at that date of $82,128 million indicating anactuarial deficit of $5,426 million. Because OMERS is a mu|ti—employerplan, any pension plansurpluses or deficits are a joint responsibility of Ontario municipal organizations and theiremployees. As a result, the municipality does not recognize any share of the OMERS pensionsurplus or deficit. Contributions made by the Municipalityto OMERS for 2016 were $488,997(2015 — $452,568).

The Municipality provides post—retirement extended health benefits to qualifying personsthrough an insurance provider which invoices the Municipalityfor the cost of the plan. The costto the Municipality for 2016 was $3,827 (2015 — $7,115).

19. Contractual Commitments

The Corporation of the Town of Bracebridge has entered into a contract totalling approximately$2,700,000 for the construction of a fire station. As of December 31, 2016, the Municipalityhas incurred expenses totalling $375,283 relating to this contract. This commitment isexpected to be funded by a new debenture.

22


December 31, 2016

20. Segmented Information

The Corporation of the Town of Bracebridge is a diversified municipal government institutionthat provides a wide range of services to its citizens such as fire protection and communityservices. Distinguishable functional segments have been separately disclosed in thesegmented information. The nature of the segments and the activities they encompass are asfollows:

Recreation and Culture

This service area provides services meant to improve the health and development of theMunicipality‘s citizens. Recreational programs and cultural programs like swimming andskating lessons are provided at arenas, aquatic centres and community centres. Also, theMunicipalityprovides library services to assist with its citizens‘ informational needs.

Planning and Development

This department provides a number of services including town planning, maintenance andenforcement of building and construction codes and review of all property development plansthrough its application process.

Protection to Persons and Property

Protection is comprised of fire protection and by—law enforcement services. The FireDepartment is responsible to provide fire suppression service, fire prevention programs,training and education. The members of the fire department includes volunteers.

Transportation and Roadways

The Pubic Works Department is responsible for providing the Municipality's transportationinfrastructure including roads. sidewalks and bridges.

General Government

General government accounts for the revenues and expenses that relate to the operations ofthe Municipality itself and cannot be directly attributed to any specific segment.

The accounting policies of the segments are the same as those described in the summary ofsignificant accounting policies. In measuring and reporting segment revenue from transactionswith other segments, inter—segment transfers are measured on the basis of budgeted amounts.Amounts that are directly attributable to a number of segments have been allocated on areasonable basis as follows:

Taxation allocated to those segments that are funded by these amounts based on actualexpenses for the year

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The Corporation of the Town of BracebridgeSchedule of Town of Bracebridge Public Library Board Operations

Budget Actual ActualFor the year ended December 31 2016 2016 2015

RevenueOntario Library Per Capita Grant 13 31,800 $ 35,869 $ 36,696HDRC capital grant — — 5,627Provincial empioyee grant 1,000 1,352 1,348Beaver Creek contract fees 16,400 18,195 69,148Fines 13,000 13,227 13,033Donations 4,000 7,964 9,503Miscellaneous 8300 10,497 9,698

74,500 87,104 145,053

ExpensesAdministration charges 100 65 —

Advertising and program supplies 3,500 3,343 3,386Amortization of tangible capital assets 62,700 62,062 62,952Capital asset purchases ~ — 16,322General and office 29,100 27,867 27,618Repairs and maintenance 173,000 163,448 135,703Salaries, wages and benefits 561,200 554,474 582,602Telephone 1,600 1,228 1,575Travel and conferences 4,000 3,777 2,973Utilities 22,900 23,625 20,520

858,100 839,889 853,651

Deficit forthe year $ (783,600) $ (752,785) $ (708,598)

26

The Corporation of the Town of BracebridgeSchedule of Trust Fund Balances and Continuity

Cemetery Care and Maintenance Trust FundBalances as at December 31, 2016

2016 2015

AssetsCash $ 2,312 Eli 2,236Due from general account 2,261 18,997investments 591,409 542,843

$ 595,982 5'6564,076

Fund balances $ 595,982 33564,076

Continuity of Cemetery Care and Maintenance Trust Fundfor the year ended December 31, 2016

Cemetery CemeteryPerpetual Perpetual

Care Care2016 2015

Balance, beginning of year $ 564,076 $ 522,569

Receiptsinvestment income 34,979 35,947Perpetual care receipts 9,164 9,008

44,143 44,955

ExpendituresCommissions 3,429 3,448Transfer to cemetery current fund 8,808 —

12,237 3,448

Balance, end of year $ 595,982 55564,076

27

the corporation town of bracebridge consolidated financial

Documents