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ON FINANCIAL STATE June 24, 1966 His Worship Mayor Lyman A, Gifford and Members of Council of The Corporation of The City of Oshowe Re: AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31st, 1965 | am pleased to submit the financial statements for the City of Oshawa and its retated Boards, Commissions and Committees for the year ended December 3ist, 1965 with the Auditor's Report and opinion thereon These financial statements are compiled in the manner prescribed by the Department of Municipal Af- fairs and give, in monetary terms, an accounting of the 1965 stewardship of your civic administration. The Auditor's Report includes an independent opinion on the 1965 financial transactions of your City. Some comments on certain items shown on the fin- ancial statements may be of interest and assistance to the members of council. For comparison purposes the previous year's figures for 1964 are bracketed ASSESSMENT The 1965 taxation year assessment for realty prop- erty and business reached a value of $257,274,805 ($244, 473,245)--an increase of $12,801,560 or 5.24% over 1964 With the 1965 popuation count at 74,194 (70,038) the per capita assessment for 1965 is at the rate of $3,468 ($3,490). MILL RATES Total 1965 mill rates for residential assessments were 41.10 (38.60), and commercial assessments 45.00 (43.03). Eduation mill rates included were residential assessment 17.08 (16.25), commercial 18.98 (18.05) TAXATION REVENUE -- (Statement D) Toxes levied in 1965 for current operations were $11,645,711 ($10,412,644) -- aon increase of $1,233,- 067 or 11.8% over 1964, The per capita tax levy in 1965 was $156.96 (148.67). CURRENT SURPLUS, TOTAL REVENUE AND EXPENDITURE -- (Statement D) As shown in the statement of revenue and expendi- ture there was a surplus for 1965 of $238,346 (494,205). Supplementary taxes for general purposes of $193,834 ($ PPas 1B) added under Section 53, Assessment Act accounted for much of this surplus. Gross toto! revenue, classified in detail by source, for 1965 was $14,071,177 ($12,692,841) --- an increase of $1,378,336 or 10.9% over 1964. ross total expenditure, classified in detail by func- tion, for 1965 was $13,832,831 ($12,198,636) -- an in- crease of $1,634,195 or $13.4% over 1964, DEFICITS -- (Statement D) (A) HILLSDALE MANOR -- HOME FOR THE AGED The operations of Hillsdale Manor Home for the aged resulted in a deficit to be absorbed by The City of Oshawa of $72,605 ($52,491) included in the expenditure clossification Socia; Welfare' -- on Statement D. CAPITAL & LOAN FUND BALANCE SHEET (STATEMENT A) DECEMBER 31, 1965 The Corporation of the City of Oshawa TREASURER'S & AUDITORS REPORTS (In Accordance With Section 223a of the Ontario Municipal Act) for the year ended December 31, 1965 with comparative figures for 1964 TREASURER'S REPORT (B) RECREATION AND COMMUNITY SERVICES --~ Included as revenue and expenditure items on both sides of Statement D are amounts relating to the follow- ing facilities:;--- EXPENDITURE REVENUE NET DEFICIT + 5 21,205 (29,712) 23,338 (11,239) 2987 ( 4,586) 1.274 ( 1,022) 7682 ( 7.886) 15,527 (15,323) $ 42,540 (40,951) 19.286 (16,783) 13,965 ( 6,405) 19,816 (22,172 81,369 (73,000) Children's Arena North Oshewe Arena Kinsmen Stadium Municipal Airport Ambulance 65,842 (59,677) (C) UTILITY DEFICIT --- BUS DEPARTMENT $45,523 ($54,374) was paid over to the Oshawa Public Utilities Commission in accordance with Section 8 of the City of Oshawa Act 1960, to cover the bus deficit for 1964 as shown on Statement D REVENUE FUND BALANCE SHEET (Statement B) (A) DUE FROM CAPITAL FUND $1,450,769 This. represents advances mode: from the revenue fund to provide temporary financing for capital works under construction by the Corporation. This internal fin- ancial procedure avoids bank borrowings before deben- ture issues and government grant settlements (8) TAX ARREARS Toxes receivable, before allowance for uncollectible taxes, at December 3lst, 1965, were $269,390 ($260,- 782) an increase of $8,608 from the preceding year's balance The allowance for uncollectible taxes, the purpose of which is to provide for possible losses on arrears of taxes wos $6,237 ($6,002) or 2.3% of the total tax ar- rears The percentage of the current tax levy settled in 1965 was 98.1% (97.7%), Total settlements (including both current levy and arrears of taxes) were 99.9% (99.7%) of the 1965 current levy. CAPITAL AND LOAN FUND BALANCE SHEET (Statement A) The gross debenture debt increased by $426,367 or 2.3% during the year. New issues of debentures amount to $2,110,000 ($1,553,449), while debenture retirements were $1,683,633 ($1,569,667) At December 3] 1965, the gross debenture debt including assumed debt was $19,093,249 ($18,666,882) or $257 ($267) per capita Excluding the debt' for the Oshawa Public Utilities Commission of $3,295,900 ($2,905,400) which will be paid mainly from utility revenue, the per capita debt was $213 ($225). GENERAL The enclosed financial statements for the year 1965 as compared with 1964 reflect the continued growth and development of this thriving and prosperous city. All of which is respectfully submitted, 1, F, MARKSON, C.A. Treasurer, WM: ET REVENUE FUND BALANCE SHEET (STATEMENT B) DECEMBER 31, 1965 STATEMENT OF REVENUE & EXPENDITURE FOR THE YEAR ENDED DEG, 31, 1965 MENTS AUDITOR'S REPORT To the Council and Ratepayers Corporation of the City of Oshawa We have examined the accounts of the Corporation of the City of Oshawa for the year ended December 31, 1965, and report as follows: REPORT WORK IN PROGRESS Included in the work in progress of $3,597,632 is an amount of $128,439 which represents engineering costs and sundry deferred expenses on various projects for which no approval has been received from the Ontario Municipal Board but which will be included in the project costs when work proceeds Funds available for capital projects have been pro- vided from government subsidies, debenture proceeds, subdivision charges and charges to revenue fund expen- ditures, Funds amounting to $93,850 which were pro- vided for certain capital projects in prior years and which were no longer required for those projects, were trans- ferred during the year to the Civic Property Development Reserve Fund, RECREATION AND COMMUNITY SERVICES Due to the nature of the receipts from various rece reational facilities, the extent of the audit of their re- ceipts has been limited. Statements prepared for the Union Cemetery opera- tions show that the reserve required for perpetual care contracts in force has increased so that at December 31, 1965, it is in excess of the corresponding assets by $5,283, We recommend that additional amounts be set aside so that the perpetual care assets will be approxi- mately equal to the reserve. FINANCING FOR CAPITAL AND REVENUE FUNDS At December 3], 1965, the City had temporarily borrowed $1,226,236 from reserve funds for capital fund purposes and $846,578 from reserve funds for revenue fund purposes, We do not know of any outhority which would permit 'the City to borrow for financing purposes from the reserve funds, CONTINGENT LIABILITIES No liability has been reflected in the financial state- ments for any contingent liability that may exist under the terms of a cumulative sick-leave plan for city em- ployees and under the terms of a supplementary pension plon, EXPENDITURES (Continued) Surplus for REVENUE Total Expenditure GENERAL COMMENTS During the yeor we continued to review certain aspects of the accounting system and have discussed mony problems with your officials. The increasing vol. ume of work requires that the system be constantly re- viewed and improved, BOARDS AND COMMISSIONS Our examination of the accounts of the City of Oshowa included the following boards, committees and commissions. Oshawa Public Library Board Hillsdale Manor Oshawa Civie Auditorium Oshawa Public Utilities Commission Oshawa Board of Education Oshawa Board of Roman Catholic Separate School Trustees Oshawa Retarded Children's Education Authority OSHAWA PUBLIC UTILITIES COMMISSION Our report on the accounts of the Commission sets out the foct that the costs of certain assets in the bus department are not charged to operations in the year of purchase, Section 64 of the Ontario Municipal Board Act requires the approval of the Board for deferring the cost of assets and this approval has not been requested, AUDITORS' OPINION Subject to the qualifications eoncerning (o) the borrowing of reserve funds for capitel and revenue fund purposes and (b)_ the foet that the cost of certain assets in the bus deportment of the Public Utilities Commission are not charged to operations in the yeor of purchose, we hereby report that in our opinion: (1). The finaneial transactions which have come under our notice have been within the powers of the Muni¢ipality, (2) The oudit has been conducted in accordance with the ime structions of the Department of Municipal Affoirs, (3) The financial statements present foirly the financial position ef the municipality as at December 31, 1965, and the results of its Operations for the yeor ended on thot dete, z GUNN, ROBERTS AND CO, Chartered Accountents Toronto, May 31,1966 License Number 2824 1964 ACTUAL 1965 AGTUAL BUDGET Provision for Allowances, : Reserves and Reserve Funds .. Toto! Gross Expenditures the yeor 357,406 $13,897,891 258,346 ___ 327,200 413,504 $13,677,764 STF THR 656 494,208 Station $14,071,177 $13,677,764 912,692,641 ASSETS 103 1964 $20,562,962 3,548,117 6/809,400 $23,231,813 3,597,432 7,004,700 Genero! Fixed Work in Progress ... Due from Schoo! Ratepayers (for Debentures) 6,809,400 7,004,700 Due from Utilities (for Debentures) 2,905,400 3,295,900 255,261 Accounts Receivable Due from Oshawo Housing Co. Ltd 36,330 46,857 Oshowo General Hospital Captolized Grant .. 507,000 $34,369,209 465,000 $37,897,163 LIABILITIES 1944 1965 notured* $4,684,561 3,747,300 6,986,700 3,295,900 18,714,461 378,788 298,686 2,677,005 Debenture Debt Issued and Unr General Loca! Improvements .... Schools Public Utilities Total Debentures Assumed $ 4,642,082 4,910,000 6,786,400 2,905,400 18,243,882 423,000 544,982 1,935,925 Accounts Poyable Due to Other Funds Funds Available for Copital Ne Projects Including work in progress 1,180,042 1,083,540 14,678,181 12,117,880 $37,897,163 $34,369,209 Investment in Copital Assets *Debenture debt. issued and unmatured of $1,870,000. (U.S. Funds) included in $18,714,461. ia shown at por of exhange, On December 31, 1965 United Stotes Funds were quoted in Toronto et @ buying rate of $1.075 in terms ef Canadian Funds, ASSETS 1965 2,256 1944 Cosh on Hand 1,790 Cash in Bank and Short Term Investments Accounts Receivable Sundry , Province of Ontario Deminion of Canada Other Municipalities Other Funds Capital Funds 1,450,749 Sundry Local Boords 133,945 Taxes Receivable less Allowance for Uneollectible Taxes Other Assets Deferred Charges .... Inventories 272,617 670,927 55,011 947,226 21,248 44, BRS 7BA76 591,611 118,696 58,344 916,699 28,158 243,153 254,780 5,R14 42,703 $ 3,049,242 21,464 87,073 Total Assets $ 3,078,804 LIABILITIES 1945 1944 Accounts Payable and Accured tems Debentures and Coupons Due Principal and Interest Other Municipalities Due to Oshawa Publie Utilities Commission Due to Oshawa Civie Auditorium Due to Other Funds Commutations Reserve Fund Union Cemetary Deferred Revenue Revenues paid in advance Reserves isa 640,270 6A5,9R4 Surplus 238,346 494,205 Total Liobilities and Surplus $ 3,078,084 $ 4,049,242 850,908 $ 1,116,140 418,47) 60,102 334,496 $3,722 $2,117 17,423 200,000 11,866 4.453 23,673 16,584 846,578 3,815 2,072 19,894 REVENUE FUND SURPLUS ACCOUNT (Statemeint C) December 31, 1965 DEBIT CREDIT Balonce at Beginning of Yeor eee $ Surplus Included in Current Budget oes Adjustments of Previous Years Operations ...... Surplus.for the Yeor 494,205 484,965 9,240 238,346 Totals of Debit and 5 re Credit Columns $494 205 $732.55} 16,725 1965 ACTUAL Total Revenue from Taxation $11,648,711 Long Term Debt Charges Recoverable Contributions, Grants ond Subsidies Governments: Ontario Other Municipolities Government Enterprises Canada Ontario Licenses and Permits Interests, Tax Penalties, ete Other Revenues Gross Total Revenue 392,252 958,730 16,587 7A,ATA 7,362 95,200 106,407 287,089 13,586,212 Surplus from prior years to reduce levy Total 484,965 Revenue Section $14,071,177 EXPENDITURES 1965 BUDGET $11,302,079 392,251 1,032,454 6,000 70,000 7,000 63,400 41,000 223,580 13,177,764 500,000 $13,677,764 ACTUAL 1965 General Government $. Protection to Persons and Property Public Works Roads, Highways Streets, ete Sanitation and Waste Removal Conservation of. Health Social Wellore Education including Debt Charges Recreation ond Community Service Debt Charges excluding Education Utility Deficit Bus Dept Utility Levies Water Frontages Taxes Written Off Conitol Expenditures out of Revenue 691,980 2,052,858 929,908 $64,525 294,878 673,772 4,745,153 626,468 1,922,377 45,523 18,791 38,574 673,618 BUDGET 1965 $ 847,729 2,098,176 896,930 $12,290 129,542 676,441 4,604,898 645,808 63,050 1964 ACTUAL $10,412,644 390,284 897,204 9,634 89,663 7,210 88,302 110,751 531,494 12,537,186 155,455 $12,692,841 ACTUAL 1964 $ 803,397 1,776,213 663,510 442,452 208,416 548,192 ° 4,244,642 400,018 1,828,477 54,374 16,698 35,400 763,346 ™ ' eeeeeeens wiv oe Poles of Auditor's Raport and Financial Statements ingluding all Boards, Commissions nd come mittees-availoble from Treasury Department upon requatt FINANCIAL STATISTICS A COMPARISON OF SALIENT FACTORS FOR THE YEARS 1965 AND 1964 1965 74,194 1964 70,038 $12,692,841 Population Count General Revenue Including Surplus from Previous Year General Expenditure (excluding any surplus) ., $14,071,177 13,832,831 12,198,636 Surplus on General : ; Ie ea Revenue Fund Account $ 238,346 $ 494,205 INCREASE (DECREASE) 4,156 $ 1,378,336 1,634,198 Operating Surplus or (Deficit) of Utilities Weterwarks o..iisivae saree Electric i Transportation 270,476 271,044 (47,559) $ 206,550 22,942 37,173) Net Operating Results of Utilities (After other transactions affecting operating Surplus or (Deficit) Waterworks Electric vie Transportation . . 31,040 § 271,044 47,559 162,678 22,942 $ (255,859) -------- $ (191,638) 248,102 (10,386) Assessed Valuation on which Taxes were Levied for General Municipal Purposes (a) Business and Commercial Property p 117,91 (b) Total of all Properties ...,,. i 257,274,808 $11,645,711 --S--S Revenue in lieu of Taxes on Crown Properties Dominion of Canada $ 76,874 Province of Ontorio ............ $ 7,362 : 7,210 $84,236 § 96,873 $113,164,290 244,473,245 $10,412,644 ot he nt ee ----------------_ 89,663 Property Taxes Levied a $ 4,753,740 12,801,560 $ 288,06) See $ (12,789) 182 206,77 260,782 Property Taxes Receivable uae ae. (a) Current ceccaus © 219,182 (b) Toto! including e@rreare ..., 269,390 Tax Rotes for both Public ond Separote 3 School Supporters Residential Property ... Business Property 41.10 45.00 38.60 mills 43.03 mills Property Acquired for Taxes a of Sera b) Total Outstanding 693,511 Reserves and Allowances against Tox Assets (o) For Taxes Receivable we (b) Total Outstanding Municipal Debenture Debt -- Gross General ro $ 5,045,949 Loeal Improvements ... 3,747,300 7,004,700 $18,797,349 $ 5,042,082 3,910,000 6,809,400 wT Utility and varie Other Municipal Enterprise Total (ineluding assumed) 3,295,900 $19,093,249 __2,905,400 $18,666,882 $ (12,637) Municipal Capital Liabilities Other Than Debenture Debt $ 4,125,733 4, $ 3,584 447 TREASURY DEPARTMENT r JUNE 24, 1966