The Corporation of the Town of Whitchurch Stouffville Consolidated Financial Statements For the year ended December 31, 2013

The Corporation of the Town of Whitchurch­

Stouffville Consolidated Financial Statements

For the year ended December 31, 2013

The Corporation of the Town of Whitchurch­

Stouffvi lle

Consolidated Financial Statem~nts

For the year ended December 31, 2013

Contents

Independent Auditor's Report 2

Consolidated Financial Statements

Consolidated Statement of Financial Position 3

Consolidated Statement of Operations and Accumulated Surplus 4

Consolidated Statement of Change in Net Debt 5

Consolidated Statement of Cash Flows 6

Notes to the Consolidated Financial Statements 7-23

Tel: 705 726 6331 BDO Canada LLP

Fax: 705 722 6588 300 Lakeshore Drive, Suite 300

I BDO

Independent Auditor's Report

To the Mayor and Councillors of

The Corporation of the Town of Whitchurch-Stouffville

We have audited the accompanying consolidated financial statements of The Corporation of the Town of Whitchurch-Stouffville, which comprise the consolidated statement of financial position as at December 31, 2013, the consolidated statements of operations and accumulated surplus, change in net debt 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 consolidated 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.

Auditor's 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 consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the consolidated 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 consolidated 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, these consolidated financial statements present fairly, in all material respects, the financial position of The Corporation of the Town of Whitchurch-Stouffville as at December 31, 2013 and the results of its operations, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

bD ^{0 ('} ce./11 c"'-rla A-t-..P

Chartered Accountants, Licensed Public Accountants

Barrie, Ontario June 24, 2014

BOO Canada LLP, a Canadian limited liability partnersh1p, 1s a member of BOO International Limited, a UK company limited by guarantee, and forms part of the international BOO network of independent member firms.

2

THE CORPORATION OF THE TOWN OF WHITCHURCH-STOUFFVILLE Con solidated Statement of Financial Position

December 31 2013 2012

Financial assets

Cash and cash equivalents (Note 4) Portfolio investments (Note 5) Taxes receivable

Accounts receivable Property held for re-sale

Liabilities

Accounts payable and accrued liabilities Short-term loan (Note 6)

Deferred revenue - obligatory reserve funds (Note 7) Other deferred revenue

Developer and other deposits Employee benefits payable (Note 8) Long-term liabilities (Note 10)

Net debt

Non-financial assets Inventory

Prepaid expenses

Tangible capital assets (Note 12)

Accumulated surplus (Note 11 )

$ 3,140,435 50,646,814 5,842,774 4,373,344 518,788 64,522,1 55

$ 1,730,769 53,796,025 6,120,346 3,019,185 2,046,590 66,712,915

13,341 ,405

13,309,747 1,161,668 14,545,620 1,476,135 35,307,310 79,1 41 ,885

9,562,495 2,000,000 17,632,363 420,622 19,948,550 989,302 34,140,442 84,693,774 (1 4,619,730) (17 ,980,859)

50,278 30,035 252,292,739 252,373,052

141,443 64,598 247,481,796 247,687,837

$ 237,753,322 $ 229,706,978

nd Contingent liabilities (Note 16)

The accompanying notes are an integral part of these consolidated financial statements.

3

THE CORPORATION OF THE TOWN OF WHITCHURCH-STOUFFVILLE Consolidated Statement of Operations and Accumulated Surplus

Year ended December 31

Budget 2013

Actual 2013

Actual 2012

Revenues

Property taxation (Note 13) Taxat ion from other governments User fees, licenses and fines Government grants

Investment income

Penalties and interest on taxes Developer contributions Donations and other Total Revenue

$

(Note 17)

21,619,519 179,310 15,309,389 2,855,822 476,200 850,000 8,998,126 556,601 50,844,967

$ 22,345,757 244,438 14,811 ,340 3,1 40,108 767,483 1,047,167 11,471,532 570,184 54,398,009

$ 20,672,045 169,877 16,142,154 2,28 1,957 579,736 959,317 27,046,384 380,116 68,231,586

Expenses

General government

Protection to persons and property Transportation services

Environmental services

Recreational and cultural services Planning and development Total Expenses

7,562,955 5,097,653 9,992,222 8,234,490 13,794,881 3,045,929 47,728,130

6,795,791 5,163,636 10,198,274 8,011,195 13,611 ,841

2,570,928 46,351,665

7,975,808 4,812,338 8,67 1,939 7,471,183 12,795,560 2,260,232 43,987,060

Annual surplus 3, 116,837 8,046,344 24,244,526

Accumulated surplus, beginning of year 229,706,978 229,706,978 205,462,452 Accumulated surplus, end of year $ 232,823,815 $ 237,753,322 $ 229,706,978

The accompanying notes are an integral part of these consolidated financial statements. 4

THE CORPORATION OF THE TOWN OF WHITCHURCH-STOUFFVILLE Consolidated Statement of Change in Net Debt

Year ended December 31

Budget 2013

Actual 2013

Actual 2012 (Note 17)

Annual surplus $ 3,116,837 $ 8,046,344 $ 24,244,526

Purchase of tangible capital assets Contributed tangible capital assets Amo rtization of tangible capital assets Proceeds from sale of tangible capital assets Loss on sale of tangible capital assets

(13,023,333) 9,095,989

(3,927 ,344)

(8,585,425) (5,485,436) 9,095,989

15,145 148,784 (4,810,943)

(9,043,174) (20,752,076) 7,976,094

27,600 162,223 (21,629,333)

Decrease in prepaid expenses

Decrease (increase) in inventories of supplies

34,563 91 ,1 65 125,728

24,314 (141 ,443}

(117,129)

Change in net financial assets/(debt) (810,507) 3,361 ,129 2,498,064

Net financial debt, beginning of year (17,980,859} {17, 980, 859~ (20,478,923}

Net financial debt, end of year $ ^{(18,791 ,366)} $ (14,619,730) $ ~17,980,859)

The accompanying notes are an integral part of these consolidated financial statements. 5

THE CORPORATION OF THE TOWN OF WHITCHURCH-STOUFFVILLE Consolidated Statement of Cash Flows

Year ended December 31 2013 2012

Operating transactions Annual surplus Amortization expense

Loss on sale of tangible capital assets Contributed tangible capital assets

$ 8,046,344 9,095,989 148,784 (5,485,436) 11 ,805,681

$ 24,244,526 7,976,094 162,223

(20, 752,076~

11,630,767

Change in non-cash items Taxes receivable Accounts receivable Property held for re-sale

Accounts payable and accrued liabilities Deferred revenue - obligatory reserve funds Other deferred revenue

Developer and other deposits Employee benefits and other liabilities Inventory

Prepaid expenses

277,573 (1 ,354, 159)

1,527,802 3,778,910 (4,322,616)

741,046 (5,402,930)

486,833 91 ,165 34,563 7,663,868

254,754 (219,757)

160,527 5,952,141 112,303 596,000 111,976 (1 41,443)

24,314 18,481,582

Capital transactions

Purchase of tangible capital assets Proceeds on sale of tangible capital assets

(8,585,425) 15,145 (8,570,280)

(9,043,174) 27,600 (9,015,574)

Investing transactions

Decrease (increase) in portfolio investments 3,149,211 (8,203,563)

Financing transactions

Proceeds from issuance of long-term debt Repayment of long-term debt

Decrease in short-term loan

2,490,000 (1 ,323, 133) (2,000,000) (833, 133)

(1 ,276,967) (1 ,276,967) Net increase (decrease) cash and cash equivalents 1,409,666 (14,522)

Cash and cash equivalents, beginning of year 1,730,769 1,745,291

Cash and cash equivalents, end of year $ 3,140,435 $ 1,730,769

The accompanying notes are an integral part of these consolidated financial statements. 6

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31,2013

1. Nature of operations

The Corporation of the Town of Whitchurch-Stouffville (the "Town") is a lower-tier municipality located in the Regional Municipality of York, Province of Ontario, Canada. It conducts its operations guided by the provisions of provincial statutes such as the Municipal Act, Municipal Affairs Act and related legislations.

2. Summary of significant accounting policies Management's responsibility

The consolidated financial statements of the Town are prepared by management in accordance with Canadian generally accepted accounting principles established by the Public Sector Accounting Board ("PSAB") of the Chartered Professional Accountants of Canada.

Reporting entity

These consolidated financial statements reflect the assets, liabilities, revenues and expenses of the reporting entity. The reporting entity is comprised of all organizations, committees and local boards accountable for the administration of their financial affairs and resources to the Town and which are owned or controlled by the Town. These Boards include:

Whitchurch-Stouffville Public Library

Nineteen on the Park Arts & Entertainment Centre Corporation

All inter-entity transactions and balances have been eliminated on consolidation. Basis of accounting

i. Accrual accounting

Revenue and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they become available and measurable. Expenditures are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay.

il. Government transfers

Government transfers are recognized in the consolidated financial statements when the transfer is authorized and any eligibility criteria have been met, except to the extent that the transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers are recognized 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.

iii. Deferred revenue- Obligatory reserve funds

Funds received for specific purposes which are externally restricted by legislation, regulation or agreement and are not available for general municipal purposes are accounted for as deferred revenue on the consolidated statement of financial position. The revenue is recognized in the consolidated statement of operations in the year in which it is used for the specified purpose.

iv. Deferred revenue- General

Funds received from residents and contractors in security for the completion of specified development projects are accounted for as deferred revenue on the consolidated statement of financial position. The revenue is recognized in the consolidated statement of operations in the year it is used for the specified purpose.

7

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31, 2013

2. Summary of significant accounting policies (continued) v. Investment income

Investment income earned is reported as revenue in the period earned. Investment income earned on obligatory reserves, such as development charges and parkland allowances, is added to the associated funds and forms part of the respective deferred revenue.

vi. Non-financial assets

Non-financial assets are not 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.

(a) Tangible capital assets

Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value of the tangible capital assets, excluding land, are amortized on a straight line basis over their estimated useful lives as follows:

Useful life - years Environmental infrastructure 20-80

Facilities 7-60

Land improvements 15-30

Machinery and equipment 3-30

Transportation infrastructure 7-50

Vehicles 5-25

Tangible capital assets under construction are recorded at cost and are not amortized until the asset is available for productive use. No amortization is charged in the year of acquisition.

(b) Contributions of tangible capital assets

Tangible capital assets received as contributions are recorded at their fair value at the date of receipt with a corresponding amount recorded as revenue. Tangible capital assets conveyed from developers are recorded at the estimated engineering value at time of registration.

vii. Employee benefits

The present value of the cost of providing employees with future benefit programs is expensed as employees earn these entitlements through service. Vacation entitlements are accru~d for as entitlements are earned.

viii. Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.

The principal estimates used in the preparation of these financial statements are employee benefits payable, estimated useful life of tangible capital assets and valuation of tangible capital assets. Actual results could differ from those estimates.

8

The Corporation of the Town of Whitchurch-Stouffville Notes to the Conso lidated Financial Statements

December 31, 2013

2. Summary of significant accounting policies (continued) viii. Use of estimates (continued)

In particular, management's estimate for the Workplace Safety & Insurance Board (WSIB) Self­

Insured Obligation (Note 8) is subject to measurement uncertainty. The estimate is based on assumptions and calculations contained in an actuary's report from WSIB. Actual results could differ from those estimates because of the uncertainty related to future medical outcomes, cost estimates, claims and settlements, etc.

ix. Cash and cash equivalents

Cash and cash equivalents are comprised of cash on hand, cash held in financial institutions and temporary investments with maturities ofone year or less.

x. Inventories

Inventories of land held for resale are valued at the lower of cost and net realizable value.

Inventory of goods and supplies are priced at average cost on first-in, first-out basis.

xi. Portfolio investments

Portfolio investments are comprised of amounts invested in mutual funds. Portfolio investments are valued at cost.

Revenue Recognition i. User fees

User fees and other revenues are reported on an accrual basis.

ii. Development charges

Developer contributions and fees for services are recognized over the period of service or when required expenses occur if applicable.

iii. Government grants

Conditional grant revenue is recognized to the extent the conditions imposed on it have been fulfilled. Unconditional grant revenue is recognized when monies are receivable.

iv. Taxation and related revenues

Property tax billings are prepared by the Town based on assessment rolls issued by the Municipal Property Assessment Corporation (MPAC). Tax rates are established by the Town Council, incorporating amounts to be raised for local services and amounts the Town is required to collect on behalf of the Province of Ontario and the Region of York in respect of education taxes and regional services respectively. The legislation limits increases in property tax bills to a maximum of 10% annually for commercial, industrial and multi-residential classes of property until the affected properties are taxed at a level equivalent to the tax otherwise calculated based on their current assessed value. A normal part of the assessment process is the issue of supplementary rolls which provide updated information with respect to changes in property assessment. Once a supplementary assessment roll is received, the Town determines the taxes applicable and renders supplementary tax billings. In accordance with PS 3510-Tax Revenue, taxation revenues are estimated and recorded at the effective date of the new assessment.

Assessments and related property taxes are subject to appeal. Tax adjustments as a result of appeals are estimated and recorded when the appeal is submitted. The Town is entitled to collect interest and penalties on overdue taxes. These revenues are recorded in the period the interest and penalties are earned.

9

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31,2013

2. Summary of significant accounting policies (continued) Pension plans

The Town is an employer member of the Ontario Municipal Employees Retirement System (OMERS), which is a multi-employer, defined benefit pension plan. The Board of Trustees, representing plan members and employers, are responsible for overseeing the management of the pension plan, including investment of assets and administration of the benefits. The Town has adopted defined contribution plan accounting principles for this Plan because insufficient information is available to apply defined benefit plan accounting principles. The Town records as pension expense the current service cost, amortization of past service costs and interest costs related to the future employer contributions to the Plan for past employee service.

3. Change in Accounting Policy

On January 1, 2013, the Town adopted the new requirements of the Chartered Professional Accountants of Canada related to section PS 2400- Subsequent Events, PS 3410- Government Transfers and PS 3510-Taxation Revenue. Section PS 2400 clarifies the meaning of the date of completion of financial statements. Section PS 3410 establishes further standards on how to account for and report government transfers. Section PS 3510 - Taxation Revenue relates to the accounting for and reporting of tax revenue. The new standards were adopted prospectively from the date of adoption.

4. Cash and cash equivalents

Cash and cash equivalents are comprised of:

2013 2012

Cash on hand $ 9,520 $ 9,460

Cash held in banks 3,130,915 1.721.309

$ 3,140,435 $ 1.730.769 The Town's bank accounts are held at one chartered bank. The bank accounts earn interest at a variable rate calculated on the daily balance.

5. Portfolio investments Portfolio investments are comprised of:

2013 2012

Bond fund $ 26,112,036 $ 20,676,430

Equity 2,319,856 3,000,000

Money market fund 2,214,922 30,119,595

GIC 20,000,000

$ 50,646,814 $ 53.796,025 The market value of the portfolio investments at December 31, 2013 was $50,661,614 (2012 ­

$54,081 ,088).

Portfolio investments restricted for Obligatory reserves total $3,887,235 (2012- $3,837,254) at December 31,2013.

10

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31,2013

6. Short-term loan

During the year, the municipality renewed the $2,000,000 (2012 - $2,000,000) borrowing from its operating line of credit of $5,000,000 to fund its cash flow operations. The interest rate on the loan is the annual interest rate on Canadian dollar commercial loans made in Canada, and payment is due 90 days after borrowing. The loan is renewable, however in October 2013 it was not renewed. At year end the balance was $ nil (2012 -$2,000,000).

7. Deferred revenue- Obligatory reserve funds

The balances in the obligatory reserve funds of the Town are summarized below:

2013 2012

Obligatory Reserve Funds

Building Code Act $ ^26,651 $ 1,369,332

Development Charges Act 11,291,549 13,221,230

Federal Gas Tax 1,569,402 2,576,879

Planning Act 4221145 464,922

$ 131309a147 $ 17,632.363

2013 2013

Opening Net Change Closing

Building Code Act $ 1,369,332 $(1,342,681) $ ^26,651

Development Charges 13,221,230 (1,929,681) 11,291,548

Federal Gas Tax 2,576,879 (1 ,007,477) 1,569,402

Planning Act 464,922 (42,777) 4221145

~17,632,363 ~(4,322,616} ~1313091747 There is provincial and municipal legislation which restricts how these funds may be used. Cash needed to fund these obligatory reserve funds is $13,309,747 (2012 - $17,632,363). Actual cash and cash equivalents and portfolio investments on hand was $53,787,250 (2012 -$55,526,794 ).

8. Employee benefits payable

The Town provides certain employee benefits that will require funding in future periods. The Town recognizes the cost of its post retirement non-pension benefit costs in the period in which the employee rendered the services.

2013 2012

Accrued salaries and wages $ ^{887,887 $ 597,517}

Vacation and overtime payable 239,641 251,449

Post retirement 215,457 18,186

Severance 123,150 112,150

WSIB obligation 101000 10,000

$ 114761135 $ 989,302

11

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financia l Statemen ts

December 31, 2013

8. Employee benefits payable (continued) Post retirement benefits

The Town provides life insurance and healthcare benefits to certain employee groups after retirement until the members reach 65 years of age. Management estimated the future liability as at December 31 , 2013 based on the current employees eligible for this benefit. The amount of benefits paid during the year was $4,333 (2012 - $3,031)

Severance

In 2002, Council approved By-law 2002-91-EM regarding Councils' remuneration. Part of the remuneration package includes eligibility of all Councilors to receive a severance payment of one month salary per year of continuous service to a maximum payment of 6 months should they not be re-elected.

Management estimated the liability based on service and salary levels as at December 31 , 2013 and reserves are set aside for this purpose.

Workplace Safety and Insurance Board

The Town is a Schedule 2 employer under the Workplace Safety and Insurance Act and, as such, assumed responsibility for financing its workplace safety insurance costs. The accrued obligation at December 31, 2013 represents an estimate of claims to be insured based on the history of claims with Town employees. A Workers' Compensation reserve has been established to help reduce the future impact of these obligations. As at December 31, 2013 the balance in the Workers' Compensation reserve was $500,000 (2012- $500,000) and is included as part of the reserve funds (Note 11 ).

The amount of benefits paid during the year was $ 4,078 (2012 - $2,231 ).

9. Pension agreement

OMERS provide pension services to more than 439,528 active and retired members and approximately 982 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 recent actuarial valuation of the Plan was conducted at December 31, 2013. The results of this valuation disclosed total actuarial liabilities of $73,004 million in respect of benefits accrued for service with actuarial assets at that date of

$64,363 million indicating an actuarial deficit of $8,641 million. Because OMERS is a multi-employer plan, any pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and their employees. As a result, the municipality does not recognize any share of the OMERS pension surplus or deficit. Contributions made by the Town for OMERS for 2013 were $1 ,297,112 (2012 ­

$1,123,813).

12

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31,2013

10. Long-term liabilities

The balance of the long-term liabilities reported on the consolidated statement of financial position consists of the following:

Debenture held by Interest Rate

Maturity

Date 2013 2012

Infrastructure Ontario 4.89% Mar 1, 2035 $ 10,689,105 $ 10,965,260 Infrastructure Ontario 4.89% Mar 1, 2035 $ 1,658,655 $ 1,701 ,505 Infrastructure Ontario 4.45% Jul4,2036 $ 2,766,917 $ 2,834,922 Infrastructure Ontario 4.45% Jul4, 2036 $ 6,010,888 $ 6,158,625 Infrastructure Ontario 3.90% Dec 1, 2051 $ ^{5,700,000 $ 5,850,000} Infrastructure Ontario 3.51% Aug 3, 2021 $ 5,991 ,745 $ 6,630,130 Infrastructure Ontario 3.21% Dec 4, 2023 $ 2,490,000 $

$ 351307131 0 $ 34,140,442 Principal repayments for each of the next five years and thereafter are as follows:

2014 2015 2016 2017 2018 Thereafter

$ 1,586,090 1,643,163 1,702,566 1,764,396 1,828,757 26,782,338

$ 35,307,310

The gross interest expense relating to the above long-term debt was $1,466,621 (2012- $1,521,162).

Repayment for all liabilities is semi-annual and consists of principal and interest.

The long-term liabilities reported above, issued in the name of the Town, have been approved by Municipal by-law. The annual principal and interest repayments required to serve these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing.

13

The Co rporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31 , 2013

11'. Accumulated surplus

Accumulated surplus is comprised of the following:

Surplus

Reserves and reserve funds (see below) $ 21,734,171 $ 15,250,192

Invested in tangible capital assets 252,292,739 247,481,796

Property held for resale 518,788 2,046,590

General - fund (657,629) (296,316)

Library - fund 15,828 15,828

Business improvement area 2,696 2,696

Less: amount financed by long-term debt (35,307,310) (34, 140,442)

Less: interest on long-term debt (497,354) (513,030)

Less: employee benefits and post retirement liabilities (348,607) (140,336)

Accumulated surplus $ 237,753,322 $ 229,706,978

Reserves set aside for specific purposes by Council

General, clerks and treasury $ 15,733,823 $ 10,686, 157

Fire protection 413,258 250,307

Public Works 905,920 541,000

Parks and recreation 3,342 185,832

Museum 39,973 70,197

Library Board 242,190 243,058

Development services 38,600 23,600

Water and sewer services 3,638,535 2,604,696

Cemetery 1221624 113,975

2111381265 14,718,822

Reserve funds set aside for specific purpose by Council

General purpose capital 595,906 531,370

Total reserves and reserve funds $ 2117341171 $ 15,250,1 92

14

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31,2013

12. Tangible capital assets Cost

Land

Land improvements Facilities

Vehicles

Machinery and equipment Transportation infrastructure Environmental infrastructure Assets under construction

Accumulated amortization

Land improvements Facilities

Vehicles

Machinery and equipment Transportation infrastructure Environmental infrastructure

Net book value

Land

Land improvements Facilities

Vehicles

Machinery and equipment Transportation infrastructure Environmental infrastructure Assets under construction

Balance as at December 31 ,

2012 Additions

$ 38,590,286 $ 26,746 17,359,964 121,926 78,716,887 2,401 ,033 6,609,635 78,628 7,689,815 851,568 93,183,568 3,229,773 68,803,093 2,800,703

Disposals/

Transfers

Balance as at December 31, 2013

$ (453,039)

(452,403) (47,611) (286,284) (498,863) (5,920}

$ 38,163,993 17,481,890 80,665,517 6,640,652 8,255,099 95,914,478 71,597,876 310,953,248 9,510,377 (1,744,120) 318,719,505 6,120,098 5,357,015 (282,739} 11,194,374

$ 317,073,346 $ 14,867,392

Balance as at December 31,

2012 Amortization

$ 3,650,110 19,093,843 2,872,732 2,930,507 30,779,889 10,264,469

$ 708,093 2,977,960 472,140 907,310 2,759,799 1,270,687

$ (2,026,859} $ 329,913,879

Disposals

Balance as at December 31, 2013

$

(368,962) (33,328) (286,284) (371 ,904) (5,921}

$ 4,358,203 21 ,702,841 3,311 ,544 3,551 ,533 33,167,784 11,529,235

$ 69,591,550 $ 9,095,989 $ (1,066,399) $ 77,6211140

Balance as at December 31, 2013

$ 38,163,993 13,123,687 58,962,676 3,329,108 4,703,566 62,746,694 60,068,641 241,098,365 11,194,374

$ 252,292,739

15

The Corporation of the Town of Whitchurch-Stouffvi lle Notes to the Consolidated Financial Statements

December31, 2013

12. Tangible capital assets (continued)

Cost Balance as at

December 31,

____fQjJ Additions

Disposals/

Transfers

Balance as at December 31,

2012

Land

Land improvements Facilities

Vehicles

Machinery and equipment Transportation infrastructure Environmental infrastructure Assets under construction

$ 36,198,845 16,637,824 73,156,851

6,468,488 6,646,228 82,811,536 55,262,222 277,181,994 11,209,911

$ 2,405,453 875,772 5,600,123 438,645 1,308,798 10,706,092 13,572,391 34,907,274 10.623.740

$ (14,012) (153,632) (40,087) (297,498) (265,211) (334,060) (31,520) (1 ,136,020) (15,713,553)

$ 38,590,286 17,359,964 78,716,887 6,609,635 7,689,815 93,183,568 68,803,093 310,953,248 6,120,098

$ 288,391,905 $ 45.531,014 $(16,849,573) $ 317,073,346

Accumulated amortization Balance as at December 31 ,

2011 Amortization Disposals

Balance as at December 31, 2012

Land improvements Facilities

Vehicles

Machinery and equipment Transportation infrastructure Environmental infrastructure

$ 3,018,212 16,528,287 2,688,098 2,391 ,377 28,650,271

9,263.197

$ 693,295 2,617,429 461,858 804,344 2,374,739 1,024,429

$ (61 ,397) (51,873) (277,224) (265,214) (245,121) (23, 157)

$ 3,650,110 19,093,843 2,872,732 2,930,507 30,779,889 10,264,469

$ 62,539,442 $ 7,976,094 $ (923,986) $ 69,591,550

Net book value Balance as at

December 31, 2012

Land

Land improvements Facilities

Vehicles

Machinery and equipment Transportation infrastructure Environmental infrastructure Assets under construction

$ 38,590,286 13,709,854 59,623,044 3,736,903 4,759,308 62,403,679 58,538,624 241,361,698 6,120,098

$247,481,796

16

The Corporation of the T own of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31 , 2013

12. Tangible capital assets (continued) a) Assets under construction

Assets under construction and other capital work in progress having a value of $11,194,37 4 (2012 ­

$6, 120,098) have not been amortized. Amortization of these assets will commence when the asset is put into service.

b) Contributed tangible capital assets

Contributed capital assets have been recognized at fair market value at the date of contribution. The value of contributed assets received during the year is $5,485,436 (2012-$20,752,076).

13. Property taxation

2013 2012

Property taxes $ 22,345,757 $ 20,672,045

Payments in lieu 244,438 169,877

Collections for other governments

Province on Ontario - school tax 22,516,343 21,726,085

Region of York - regional tax 34,413,466 33,223,718

Transfers

Province on Ontario - school tax (22,516,343) (21 ,726,085)

Region of York - regional tax (34,413,466} (33,223.718}

Available for general municipal purposes $ 22,59Q 195 $2Q 841.922

14. Public liability insurance

The Town has undertaken a portion of the risk for public liability, as a means of achieving cost effective risk management. As a result, the Town is self-insured for public liability claims up to $5,000 for any individual claim or for any number of claims arising out of a single occurrence. Outside insurance coverage is in place for claims in excess of $5,000 to a maximum of $5,000,000 per claim occurrence.

Claim expenses for the year in the amount of $3,993 (2012 - $25,419) are reported as expenses in the Consolidated Statement of Operations.

15. Commitments

The Town has numerous contracts with a variety of suppliers for future capital projects that are budgeted in the next fiscal year.

17

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31 , 2013

16. Contingent liabilities

No legal actions or claims have been instituted against the Town. It is management's opinion that there is no significant uninsured liability. Accordingly, no provision has been made in the accounts for any amount claimed.

17. Budget

The Budget adopted on April 9, 2013 by the Town for 2013 was not prepared on a basis consistent with that used to report actual results (Canadian public sector accounting standards). The budget was prepared on a modified accrual basis while Canadian public sector accounting standards now require a full accrual basis. The budget figures anticipated the use of surpluses accumulated in previous years to offset current year expenditures in excess of current year revenues such that the net budget was $NIL. In addition, the budget expensed all tangible capital expenditures rather than including amortization expense. As a result, the budget figures presented in the statements of operations and change in net financial assets represent the budget adopted by the Town for 2013 with adjustments as follows:

Budgeted surplus for the year, as approved Add:

Less:

Capital expenses Principal repayments

Budgeted inter-fund transfers Amortization

$

13,023,333 1,904,311 2,714,818 9.095,989 Budgeted surplus for the year, per statement of operations $ 3.116,837

18. Comparative Figures

The comparative figures presented are for the year ended December 31, 2012. Certain of the 2012 comparative figures have been reclassified to conform to the financial presentation adopted in 2013.

19. Segmented information

The Town provides a range of services to its citizens. For management reporting and stewardship purposes, the Town's operations are organized and reported by the services they supply.

Town services are provided by departments and their activities are reported. The following departments have been separately disclosed in the segmented information. The nature of the segment and the activities they encompass are as follows:

General government

General government encompasses the administrative departments and activities, including Council, office of the Chief Administrative Officer, Clerk's office, By-law and Treasury. The cemetery is included in this segment as well.

18

The Corporation of the Town of Whitchurch-Stouffville Notes to the Consolidated Financial Statements

December 31,2013

19. Segmented information (continued) Protection

Protection is comprised of fire and emergency services. This department is responsible for maintaining and enhancing public safety through emergency management planning, prevention and public education programs, enforcement and emergency response services.

Public works

The Public Works department is responsible for maintaining the Town's infrastructure. This includes the safety and maintenance of the Town's paved roads, sidewalks, streetlights, trees, traffic control devices, waste/recycling collection and the school crossing guard program.

Environment

This segment consists of water and wastewater services. Its responsibilities include the provision of drinking water and the collection and treatment of wastewater.

Recreation

The Recreation department is responsible for the planning, administration, operation and maintenance of municipal parks and facilities. Recreation and leisure services are provided through fitness and aquatic programs as well as parks, playgrounds, open spaces and trail systems.

Planning

The Planning and Building Services department administers and oversees key aspects of the land use and development approval process in the Town.

Culture

This segment supports arts & culture and promotes and preserves the community's heritage through museum services.

Nineteen on the Park Arts and Entertainment Corporation

Nineteen on the Park Arts and Entertainment Corporation is a multi-purpose event centre designed to enhance the quality of life for Whitchurch-Stouffville residents and visitors, offering both professional and community-based activities.

Library

The Library serves the members of the public in their leisure, informational and cultural quests.

For each reported segment, revenues and expenses represent both amounts that are directly attributable to the segment and the amounts that are allocated on a reasonable basis. Taxation revenue is allocated to the general government as there is no appropriate basis of allocation to other segments.

The accounting policies used in these segments are consistent with those followed in the preparation of the consolidated financial statements as disclosed in Note 2.

19

The Corporation of the Town of Whitchurch·Stouffville Consolidated Schedule of Segment Disclosure Year ended December 31

All Sesments General Government Protection

2013 2012 2013 2012 2013 2012

Revenues

Taxation $ 22,345,757 $ 20,672,045 $ 22,345,757 $ 20,672,045 $

.

Taxation from other governments 244,438 169,877 165,1 28 100,103

User fees, licences and fines 14,811,340 16,142,154 842,986 1,064,802 174,320 203,069

Government grants 3,140,108 2,281,957 2,939,827 2,031,717

Investment income 767,483 579,736 753,250 567,360

Penalties and interest on taxes 1,047,167 959,317 1,047,167 959,317

Developer contributions earned 11,471,532 27,046,384 1,580,807 742,738 83,901 74,877

Donations & others 570,184 380,116 55,301 854,440 708 3,288

54,398,009 68,231,586 29,730,223 26,992,522 258,929 281,234

Expenses

Salaries and wages 18,872,196 18,341,418 4,002,505 3,547,261 3,825,109 3,486,619

Materials, supplies and services 7,369,112 7,135,817 1,000,316 1,250,993 455,833 421,837

Contracted services 4,508,874 3,958,997 1,054,085 919,049 297,677 317,531

Rent and financial expenses 2,266,767 1,796,244 779,940 263,632 81 ,770 83,964

Transfers to other entities 4,238,729 4,623,300 (1 ,011,205) 1,190,078 (1,400) (1 ,400)

Amortization 9,095,987 8,131,284 970,150 804,795 504,647 503,787

46,351,665 43,987,060 6,795,791 7,975,808 5,163,636 4,812,338

Net surplus I (deficit) $ 8,046,344 $ 24,244,526 $ 22,934,432 $ 19,016,714 $ (4,904, 707) $ (4,531 '104)

20

The Corporation of the Town of Whitchurch-Stouffville Consolidated Schedule of Segment Disclosure Year ended December 31

Revenues Taxation

Taxation from other governments User fees, licences and fines Government grants

Investment income

Penalties and interest on taxes Developer contributions earned Donations & others

$

Transportation

2013 2012

-

838,316 1,217,964

47,573 32,034

- ^-

3,965,487 16,496,506

2,009 7,214

4,853,385 17,753,718

$

Environment

2013 2012

-

^-

7,732,937 7,756,403

- ^-

8,159 7,122

2,747,546 6,973,028

24,514 20,940

10,513,156 14,757,493

$

Recreation 2013

-

3,364,555 6,100

1,289,008 309,089 4,968,752

2012

3,159,182 13,890

2,055,361 113,975 5,342,408

Expenses

Salaries and wages

Materials, supplies and services Contracted services

Rent and financial expenses Transfers to other entities Amortization

2,156,259 2,173,897 2,310,154 245,488 (4,000) 3,316,476 10,198,274

2,134,604 1,514,821 1,857,883 251 ,909 (4,000) 2,916,722 8,671,939

915,990 504,617 71 ,609 63,070 5,144,937 1,310,972 8,011 ,195

887,522 552,709 69,987 63,070 4,832,418 1,065,477 7,471,183

4,714,883 2,585,107 168,967 1,091,399 1,226,355 2,821,101 12,607,812

5,195,812 2,825,741 354,936 1,128,941 (10,720) 2,685,313 12,180,023

Net surplus I (deficit) $ (5,344,889) $ 9,081,779 $ 2,501 ,961 $ 7,286,310 $ (7,639,060) $ (6,837,615)

21

The Corporation of the Town of Whitchurch-Stouffville Consolidated Schedule of Segment Disclosure Year ended December 31

Plannin!J Culture Libra!}:

2013 2012 2013 2012 2013 20 12

Revenues

Taxation $

-

^-

-

^-

Taxation from other governments 79,310 69,774

User fees, licences and fines 1,624,681 2,527,585 43,819 28,041 54,190 49,96 1

Government grants

-

Investment income

- -

Penalties and interest on taxes

Developer contributions earned 1,687,120 573,874

- ^-

Donations & others 39,103 11,770 99,665 101,172 28,585 27,937

3,430,214 3,233,503 181,928 168,370 1,391 ,066 1,338,334

Expenses

Salaries and wages 1,868,073 1,771 ,027 352,405 353,917 932,077 855, 156

Materials, supplies and services 304,230 258,419 127,567 119,554 136,973 113,078

Contracted services 398,625 230,786 16,241 20,234 73,978 67,21 1

Rent and financial expenses

- ^- - -

Transfers to other entities

-

Amortization

- - - ^-

2,570,928 2,260,232 617,330 615,537 1,316,343 1,191,239

Net surplus I (deficit) $ 859,286 $ 973,271 $ (435,402) $ (447, 167) $ 74,723 $ 147,095

22

The Corporation of the Town of Whitchurch-St ouffville Consolidated Schedule of Segment Disclosure Year ended December 31

Revenues Taxation

Taxation from other governments User fees, licences and fines Government grants

Investment income

Penalties and interest on taxes Developer contributions earned Donations & others

$

Nineteen on the Park

2013 201 2

116,065 $ 119,212

135,536 135,147

49,620 44,930

11,210 14,380

312,431 313,669

$

Other Funds

2013 2012

(1 ,237,075) $ (1 ' 174,665)

(5,000)

-

(1 ,242,075) (1 ,949,665)

Expenses

Salaries and wages

Materials, supplies and services Contracted services

Rent and financial expenses Transfers to other entities Amortization

104,895 85,572 117,538 4,426

- -

312,431

109,500 78,665 121,380 4,124

- -

313,669

(5,000)

(1,237,075)

-

(1 ,242,075)

(1 ,504,908)

-

(1 ,504,908)

Net surplus I (deficit) $

-

-

23