8 _ Waterioo Chronicle, Wednesday, August 23, 1972 Current assets LIABILITIES Current liabilities Temporary loans Accounts payable and accrued liabilities Other current1liabilities ASSETS Cash Accounts receivable Taxes receivable Other current assets Capital outlay to be recovered in future years Net long term liabilities Reserves and reserve funds Surplus {All dollar amounts are in thousands of dollars. except per capita figuees) 1. _ Population at the end of the year 2. _ Area in acres at the end ot the year 3. Employees continuous full time 4. _ Assessment Taxable assessment upon which the year‘s rates of taxation were set Residental and farm Commercial and industrial 9. Net long term liabilities General municipal activities Per capita Percentage of taxable assessment Municipal enterprises 10. _ Charges for net long term liabilities General municipal activities Per capita As a mill rate 11. Contributions from the revenue fund for capital expenditure 12. Surplus at the end of the year 13. _ Reserves c 14. Capital expenditure in the year percentage of taxable assessment Excempt assessment Provincial equalization factor Per capita Commercial and industrial as a Rates of Taxation Residential and farm mill rate Commercial and industrial mill rate Revenue Taxation â€" realty â€" business â€" special charges Contributions from other governments Other revenue Expenditure General municipal Education Tax arrears â€" percapita CONSOLIDATED BALANCE SHEET percentage of current levy * Base year â€" 1940 (1965â€"71 as a percentage of current market value) $ 7,912 1,449 $ _9.980 $ 6,04) 1,124 11,753,031 10,406,450 674,427 140,631 10,779,384 11,397,205 11,753,031 1971 36,313 . 231,523 2,069 512,031 280,314 143,677 973,647 531,523 215 253 70 79 87 TEN YEAR FINANCIAL REVIEW $ _ 7,150 1,182 $ ~~5,516 1,034 1970 34,641 107 2,234 77 15 11,064,766 667 ,236 122,738 12,218,367 12,218,367 821,162 143,085 218,309 103,820 $ 5,613 $ 7,049 1970 33,349 172 74 107 3,746 215 383 81 General government Protection to persons and property Public works Sanitation and waste removal Conservation of health Recreation and community services Community planning and development Transfers to others Capital Outlay . Capital expenditure Unfinanced capital outlay at the beginning of the year Long term liabilities incurred Contributions from other governments Contributions from the revenue fund Contributions from reserve funds and reserves Other $ 4,428 Unfinanced capital outlay at the end of the year Capital Financing 32,645 7,330 2,570 STATEMENT OF CAPITAL FUND OPERATIONS 311 21 69 77 11 $ â€" 5,054 $ â€" 4,120 767 167. CITY OF WATERLOO® 1967 31,422 155 187 $ â€" 4,274 227 $ â€" 3,426 652 â€" 196r. 175 137 57 $ â€"2,937 28,079 6,891 151 133 For The Year Endpd Rpcember 31, 1971 4% With comparative figures for the year ended December 31, 1970 (Note 8 ) 25,478 5,293 119 4% 49 FINANCIQ@L STQTEMENTS (2,048,314) 2,068,809 _ 2,444,894 1,722,761 251,252 836,695 174,921 325,233 253,391 303,690 1,239,396 1,192,368 129,354 178,986 201,439 221,934 $ 2,233 43,965 23,401 124 311 5% 31 13 47 52 75 $ ,2,122 (2,836,972) 22,244 1,960,834 107,215 21,489 211,101 593,517 135,929 112 692 201,4139 117 1970 REVENUE ~: $ Taxation Contributions from other governments ‘he Eam Other 32 14 51 4% 47 52 EXPENDITURE: General government Protection to persons and property Public works Sanitation and waste removal Conservation of health Social and family services Recreation and community services Community planning and development Financial expenses Education Excess of revenue over expenditure for the year Surplus at the beginning of the year As previously reported Adjustment for sewers and sewage treatment (note 8) Surplus at the end of the year Allocated as follows: General revenue Appropriated for sewers and sewage treatment (note 8) Excess of revenue over expenditure for the year June 7, 1972 We have examined the consolidated balance sheet of the Corporation of the City of Waterloo as at December 31, 1971 and the statements of revenue and expenditure and surplus and capital fund operaâ€" tions for ;'year then ended. Our examination includâ€" ed a gen review of the accounting procedures and such tests of accounting records and other supportâ€" ing evidence as we considered necessary in the cirâ€" 'umstans. In 0o pinion these financial statements present fairly the financial position of The Corporation of the City of Waterloo as at December 31, 1971 and the results of its operations for the year then ended, in accordance with accounting principles generally acâ€" cepted for Ontario municipalities applied on a basis consistent with that of the preceding year, after givâ€" ing retroactive effect to the change in accounting principle explained in note 8 to the financial stateâ€" ments. To the Inhabitants and Ratepayers of The Corporaâ€" tion of the City of Waterloo: As restated TOTAL REVENUE TOTAL EXPENDITURE STATEMENTS OF REVENUE AND EXPENDITURE * AND SURPLUS AUDITORS‘ REPORT REVENUE AND EXPENDITURE SURPLUS CLARKSON, GORDON & CO. Chartered Accountants Licence number 401 1. 357 ,214 1,598,735 _ 1,502,201 702,085 241,578 396,193 $7,911,598 1,448,676 619,609 $ 17,893 9,979,883 $ 140,631 $ 70,482 $ 140,631 9,961,990 252,918 133,949 4,026,167 1971 122,738 70,116 70,149 17,893 $ (46,031) $7,149,954 1,181,935 $ 52,622 8,871,966 $ 74,218 $ 122,738 $ 122,738 313,955 1,348,005 1,510,368 658,107 218,959 3,697,878 8,917,997 (46,031) 228,818 168,769 1970 94,551 70,116 1. CHARGES FOR NET LONG TERM LIABILITIES Total charges for the year for net long term liabilities were as follows: Principal payments including contributions to sinking funds and to the debt retirement fund of Ontario Water Resources Cor:mission Interest 6. LIABILITIES PAYABLE IN FOREIGN CURRENCIES 5. CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS Of the total charges shown above, $1,320,356 was paid from the revenue of the municipality and is included in expenditure, classified under the appropriate functional headings, and $318,722 was recovered from the municipal enterprises for which the related net long term liabilities were incurred. CONTRIBUTIONS TO RESERVE FUNDS Contributions to reserve funds amounting to $25,233 are included in the Statement of Revenue and Expendiâ€" ture, classified under the appropriate functional headings. BASIS OF CONSOLIDATION The Consolidated Balance Sheet reflects the assets and liabilities of the revenue fund, the capital fund and all reserve funds of the municipality. Trust fund assets administered by the municipality, amounting to $125,091 have not been consolidated, nor have the assets and liabilities of any local boards of the municipalâ€" ity. NET LONG TERM LIABILITIES Total long term liabilities incurred by the municipality and outstanding at the end of the year amount to $12,935,079 In addition, the municipality has assumed responsibility for the payment of principal and interest charges on ~ certain long term liabilities issued by other municiâ€" palities. At the end of the year, the principal a'lzomt of this liability is 5 950,309 Of the long term liabilities shown above, the responsiâ€" bility for payment of principal and interest charges has been assumed by others for a principal amount of (2,888,091) The total value of sinking funds and the balance in the debt retirement fund of the Ontario Water Resources Commission which have been accumulated to the end of the year to retire the outstanding long term liabilities included above amount to (439,847) Long term liabilities issued by the municipality, and held by reserve funds as investments, amount to _ (151,000) Net long term liabilities at the end of the year Included in ‘"Net long term liabilities‘‘ is an amount of $1,400,000 payable in U.S. dollars and recorded on the basis of $1 Canadian being equal to $1 U.S. LIABILITY FOR VESTED SICK LEAVE BENEFITS Under the sick leave benefit plan, unused sick leave can accumulate and employees may become entitled to a cash payment when they leave the municipality‘s employment. The liability for these accumulated days, to the extent that they have vested and could be taken in cash by an employee on terminating, amounted to $254,248 at the end of the year. Although an amount of $57,000 has been provided in respect of this past service liability it is the normal practice of the municipality to exâ€" pense these costs in the year payment is made. SPECIAL CHARGES In former years the municipality has reflected as income and expenditure for special charges only those amounts which were required to meet the expenditure for the current year. Any excess amount levied was considered to be a deferred revenue and reflected in the Consolidated Balance Sheet under other current liabilities. In 1971, the Department of Municipal Affairs requires that the total revenues and expenditures relating to special charges be reflected in the revenue and expenditure statement and that the resultant surplus or deficit from such charges be reflected as part of the general revenue fund surplus or deficit. While the general principle of reflecting such surplus or deficit as a part of the revenue fund surplus or defâ€" icit may reflect the overall financial picture of the municipality more completely, the opinion is that these statements should reflect the component parts of such surplus. Consequently, the amount of such surplus is designated in the revenue fund surplus in 1971 and 1970 as being earmarked for the specific purpose for which it was raised. The 1970 revenue and expenditure figures have been restated to reflect this change. Some capital outlay does not represent a burden on general municipal revenues, as it is to be recovered in future years from other sources: x . Special charges on benefiting landowners $2,544,107 Municipal enterprises * 2,063,000 NOTES TO FINANCIAL STATEMENTS Waterioo Chronicle, Wednesday, August 23, 1972 9 $10,406, 450 $1,639,078 $ 831,475 $4,607 , 107