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WHITBY FREE PRESS, WEDNESV)AY. IULY 9, 1980. PAGE 17 CorpQration of the Town of Whitby FINANCIAL REPORT 1979 cont'd. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31., 1979 1. ACCOUNTING POLIC lES: (a) Statement of revenue and expenditure: This statement reflects the revenues and expenditures of the revenue fund of the tunicipaity and includes the activities of all comoittees of council, the Public Library Board and the Groveside Cemetery Board. (b) Statement of capital operations: (1) This statement reflects the capital expenditures and the related capital financing to be recovered from general municipal revenues of the municipality and the Public Library Board. (ii) The long-terni liabilities reported on this statement were incurred by the Region of Durham on behaîf of the Town of Whitby. Repayment of this debt is the responsibility of this municipality. (c) Balance sheet: This statement reflects the assets and liabilities of the revenue fund, the capital fund, reserve funds, the Public Library Board and the Groveside Cemetery Board. The assets and liabilities for the Whitby Public Utilities Commission are not reflected except to the exterit of the related net long-term liabilities and capital outlay to be recovered in. future years. (d) Fixed assets: The historical cost and accumulated depreciation of fixed assets is not reported for municipal purposes. Instead, the "Capital outla'y to be recovered in future years" which is the aggregate of the principal portion of unmatured long-term liabilities, capital funds transferred ta other organizations and the cost of capital projects not yet permanently financed is reported on the "Balance Sheet". (eý Municipal enterprîses: The revenues and expenditures of the Whitby Public Utihities Commission are not reflected in the "Statement of Revenue and Expenditure". (f) Charges for net long..term liabilities: Debt retirement costs including principal and interest are charged against current revenues in the periods in which they 'are paid. Interest charges are not accrued for the periods from the dates of the latest interest payments to the end of the financial year. (g) Trust funds: Trust funds administered by the municipality axounting to $119, 502 have not been included in the combined financial statements. 2. CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS:4 (a) Some capital outlay to be recbvered in future years does not represent a burden on general municipal revenues, as it is to be recovered froni the Whitby Public Utilities Commission. As at December 31, 1979 the amount to be recovered from the Commission was $995,155 (1978 - $1,073,881). (b) Capital outlays and the transfers of capital funds in the axount of $638,821 which have been financed from general municipal revenues of the current year are reported on the "Statement of Revenue and Expenditure". 3. RESERVE AND REAERVE FUN]JS:ý The "Statement of Revenue-and Expenditure" does not reflect the following revenues for the year which were credited directly to reserve funds. Income froni investments ..................... Subdivider and developer contributions. Ontario Home Renewal Plan Grants............. Neighbourhood Improvenent Grants............. Sale of land ................................ Other .................. i..................... 1979 $ 430,523 1,4343,686 4o,000 83,933 7,34o 1978 $312,84 2,970,806 86,ý000 246,000 143,728 13,055 $1,996,482 $3,771,773 4. NET LONG-TERM LIABILITIES: (a) The balance for net long-terni liabilities reported on the "Balance Sheet" is made up of the following: Total long-terni liabilities incurred by the municipality and outstanding at the end of the year anounted to.... in addition, the municipality has assumed responsibility for the paymerTt of principal and interest charges on certain long-terni liabilities issued by other municipalities. At the end of the year the principal amount of this liability was......................... 0f the long-terni liabilities shown above, the responsibilitY for the payment of principal and interest charges has been assuined by others fcr a principal amount of................................. Long-terni liabilities issued by the municipality and held by the reserve funds as investments amounted ta.. Net long-terni liabihities at the end of the year... $4,512,268 2,674,325 (3,272,49o) 3,914,103 21,000 $!L§2L93,0 (b) Included in "Net long-terni liabilities" on the "Balance Sheet" is an amount of $1,113,000 payable in U.S. currency and converted into Canadian dollars at the rate prevailing when the liability vas incurred. If the liability is converted into Canadian dollars at the exchange rate prevailirig at December 31, 1979 theliability would be increased by $157,075. 5.CHARGES FOR NET LONG-TERM LIABILITIES: Total charges for the year for net long-term liabilities were as follows: 1979 1978 Principal paymerits .......................... Interest................................... 376,o62 379,525 $7i44,402 $691,641 0f the total charges shown above, $554,335 was paid froni general municipal revenues of the municipality and are included in expenditure on the "Statement of Revenue and Expenditure" classified under the appropriate functÇonal headings. In addition, $19,188 was paid from resexve funds. The remainiig el70,67(9 was recovered froni municipal enterprises for which the related net long-terni liabilities were incurred and are not reflected in these statements. 6. UNFINANCED CAPITAL OUTLAY: The unfinanced capital outlay includes an aiount owing to the Public Utilities Commission of $39,274 for the purchase in 1973 of the street lighting systeni. The balance of this amount will be paid to the Public Utilities Commission over a three -year perioci ending in 1982. Ontario Municipal Board approval was not obtained for this purchase. 7. SICK LEAVE: During the year, the Municipality negotiated an agreement to terminate the Sick Leave Benefit Programme which has been in effect for many years, All employee groups, except firemen and employees of local boards are included in this agreement. The Town has agreed to pay to these employees an amount equal to 55% of the sick leave days accuniulated to J une 30, 1979. Employees vere given the alternative of receiving these axounts either in full in 1979, or over a maximum of four years. Employees who elected to receive pgyxsents subsequent to 1979 will be paid ba;sed on their individual rate of earnings in effect at the tume of each instalîment. The total estimated amount of the payment, based on 1979 salary rates, is $242,000.00 of which approximately $171,000-00 was paid out in 1979. The balance is to be paid out as follows:- 1980 - $41,ooo.oo 1981 - $20, 000. 0 1982 - $10, 000.00 In addition, employees who will retire within five years were given the option to carry on under the existing sick leave plan until retirement. The Sick Leave Benefit Programme has been replaced with Long Tcrni Disability Insurance with the Town of Whitby paying 100% of the cost of the insurance. In addition, the Municipality still has a liability for vested sick leave benefits for Fire Department employees and employees of its local boards who were not a party to the negotiated agreement. Under the Sick Leave Benefit Plan, unused sick leave may accusiulate and employees may become entitled to a cash payment when they leave the municipality's employment. The liability for those accuxulated days to the extent that they have vested and could be taken in cash by an employee on terminating amounted to approximately $239,000.00. An amount of $16,012. has been provided for this past service liability and is included under Reser-ves on the "Balance Sheet". 8. PUBLIC UTILITIES COMMISSION - Hydro Debt: In 1974 the Whitby Public Utilities Comm ission signed an agreement withý Ontario Hydro for the purchase of the rural hydro system, wliich was transferred to the Whitby Public Utilities Commission in 1968. The purchase price of the rural systeni was $849,400 which is to be repaid in monthly instalments of $7,500 including interest. In 1976 the Whitby Public ttillties Commission purchasedtransmission lines (44Kv specific facility lines) within the Town of Whitby from Ontario Hydro for a price of $209,741. This amount is to be repaid in nonthly instalments o f $2,000 including interest. No Ontario Municipal Board approval was obtained for the liability incurred in 1976. These agreements have not been approved by the Corporation of the Town of Whitby and, therefore, the amounts owing are not recognized or shown in the 1979 consolidated balance sheet of the Corporation of the Town of Whitby. The azount owing at December 31, 1979 of $692,348 is shown on the Whitby Public Utilities Commission balance sheet as capital debt and is being recovered froni user service charges. fRATES 0F TAXATION 1979 1978 rResidential and farm miii rate for general municipal purposes 57.1. 57b for region or county purposes . 214W . ý 27 -5 for school board purposes74>. 70.0 Total 161. 155.1 Commercial and industrial miii rate for general municipal purposes 67.1 67.8 for region or county purposes. 35.1. 32.3 for school board purposes. 83.2 77.8 Total iv -45.177.9