Financial Report and Consolidated Financial Statements
For the year ended December 31, 2014
Prepared by
Corporate Services Department, City of Brantford
Financial Report and Consolidated Financial Statements
For the Year Ended December 31, 2014
The Corporation of the City of Brantford Brantford, Ontario, Canada
Prepared by
Corporate Services Department,
City of Brantford
Welcome to Brantford... 5
Members of Council ... 6
Corporate Organizational Chart ... 7
Message from the City Treasurer, Director of Finance ... 8
FINANCIAL SECTION
CITY OF BRANTFORD CONSOLIDATED FINANCIAL STATEMENTSManagement Report ... 25
Independent Auditors’ Report ... 26
Consolidated Statement of Financial Position ... 27
Consolidated Statement of Operations ... 28
Consolidated Statement of Changes in Net Financial Assets ... 29
Consolidated Statement of Cash Flows ... 30
Notes to the Consolidated Financial Statements ... 31
Schedule of Tangible Capital Assets ... 52
Schedule of Segmented Information ... 53
CITY OF BRANTFORD TRUST FUNDS FINANCIAL STATEMENTS ...56
BRANTFORD PUBLIC LIBRARY FINANCIAL STATEMENTS ...62
BRANTFORD MUNICIPAL NON-PROFIT HOUSING CORPORATION FINANCIAL STATEMENTS ...76
JOHN NOBLE HOME FINANCIAL STATEMENTS ...89
BRANT COUNTY HEALTH UNIT FINANCIAL STATEMENTS ...
102
BRANTFORD DOWNTOWN BUSINESS IMPROVEMENT AREA FINANCIAL STATEMENTS ... 127
STATISTICAL INFORMATION ...
Five-Year Financial Review ... 135
INTRODUCTION
• Police
• Fire & Rescue
• Affordable Housing
• Ontario Works
• Child Care
Telephone City, as it was here in 1874 where Alexander Graham Bell first conceived the idea for the telephone. Brantford is also hometown to hockey's greatest legend, Wayne Gretzky.
Walter Gretzky, Canada’s most famous hockey Dad, still calls our City home. Today, Brantford is a vibrant community with its central location making it an ideal place to live, work, play and visit.
Location
Strategically centred in the largest industrial corridor of the free world, and ideally situated 55 miles southwest of Toronto and less than 90 minutes from Buffalo, N.Y., Brantford offers manufacturers, distributors and service companies the best of both worlds. Brantford is directly connected to Trans-Canada Highway
#401 immediately to the west, and the Queen Elizabeth Way to the East by Highway 403.
• Population: 97,499
• Growth rate 2006-2011: 3.8%
Employment
Brantford has a local workforce of over 74,000 and over 800,000 within a 30-minute commuter shed.
Brantford’s top business employers include:
• Ferrero Canada Ltd.
• OLG Brantford Casino
• S.C Johnson and Son Ltd.
• NCO Financial Services
• Western Waffles
Higher Education
The City of Brantford is proud to be home to three post-secondary institutions.
• Laurier Brantford
• Conestoga College
• Nipissing University
Population Essential Services
• Water & Waste Water
• Waste Management
• Transportation Services
• Public Transit
Mayor – Chris Friel
Ward 1
Larry Kings Ward 1
Rick Weaver
Ward 2 John Sless
Ward 3
Dan McCreary Ward 3
Greg Martin Ward 4
Richard Carpenter
Ward 4
Cheryl Antoski Ward 5
David Neumann Ward 5
Brian Van Tilborg
Members Of Council 2014-2018
Brantford’s City Council is comprised of the Mayor and ten City Councillors (two from each of the City’s five Wards.)
Ward 2 John Utley
Public Works Community Services Chief Administrative Officer
Corporate Services
Geoff Rae
Public Health, Safety & Social
Services
Corporate Policy & Management Practices
Corporate Communications
Corporate Customer Service
Accounting
Budgets & Financial Analysis
City Clerk's Office
Customer Service - Water
Human Resources
IT Services
Legal and Real Estate
Provincial Offenses Office
Purchasing
Tax Office
Brantford Cultural Network
Brownfields
Building
Business Resource Centre
Current Planning Services
Development Approvals
Downtown Revitalization
Economic Development and Tourism
Golf Operations
Growth Management
Heritage
Parks Services
Recreation Services
Policy Planning, Heritage
& Special Projects
Property Standards
By-law Enforcement
Sanderson Centre
Ontario Works
Housing Services
Child Care Services
Brantford Fire Department
Brantford Police Services
Brantford Public Library
John Noble Home
Brantford Farmers’
Market
Brantford Municipal Airport
Design and Construction
Engineering
Environmental Services
Fleet
Parking
Facilities and Asset Management
Operational Services
Transit
Transportation Services
Greg Dworak Josephine Atanas
Russ Loukes Darryl Lee
It is with great pleasure that I present the 2014 Annual Financial Report for the Corporation of the City of
Brantford. This report provides stakeholders with highlights of the City’s 2014 financial results, including the strategic financial plan, financial management processes, significant achievements for the year, and our priorities for the future.
Limited financial resources have been and will continue to be a major issue for the City of Brantford. At the same time, we are facing the need to deal with aging infrastructure, downloaded services from senior levels of government, and competing interests for improved and new services. The City had developed a strategic plan to determine where to focus our limited resources and provide a balance between service delivery and financial stability.
Message from the City Treasurer, Director of Finance
The City of Brantford’s strategic goals are guided by three fundamental elements – our community vision, our corporate mission, and our long-term desired goals.
Community Vision
Brantford- proud, vibrant, progressive ... a “GRAND" community for living, learning, working and playing.
Corporate Mission
The City of Brantford, in partnership with our community, is committed to responsible leadership through sound fiscal management and the delivery of quality programs and services for the citizens of Brantford
Long-Term Desired Goals
• Economic Vitality & Innovation
• High Quality of Life & Caring for All Citizens
• Managed Growth & Environmental Leadership
• Excellence in Governance & Municipal Management
Today, these goals continue to reflect the needs and vision of our community and will be used
to assist Council in setting priorities and utilizing resources during the remainder of their term
through to 2018. Strategic actions have been proposed that would continue to work towards
our community’s long term desired outcomes.
Specifically, the City is committed to engaging and informing the citizens of Brantford about their community and their City government; the City of Brantford will be known for its open and accessible government. In order to ensure community involvement, the City of Brantford has developed a Community Involvement Policy, Framework and a Community Involvement Toolkit.
The goal of this initiative is to provide decision makers, staff of the City of Brantford, and most
importantly, our citizens and stakeholders with a consistent genuine approach that will set a standard of excellence for community involvement plans in the City.
Other accomplishments & initiatives
Commission Priorities for 2015
Launched Customer One Strategy including investment of approximately $3.8 million in technology to support the initiative (new Unified Communications telephone system and Customer Relationship Management tools) supported by corporate-wide customer service training
Develop 4 key strategic initiatives that focus on engaging residents, service organizations, business community, educators and other stakeholders to create a community where people want to live, work, learn, play and grow
Complete Strategic Growth Negotiations with neighbouring municipalities
Develop Corporate Communication Strategy
Review City services and programs to adapt to changing demographics and ensure integration with City initiatives
Explore opportunities for lean practices as part of ongoing operational efficiency review
Involving the Community in discussions on matters that affect them is a fundamental element of
representative democracy. As part of the City of Brantford Community Strategic Plan, the City of
Brantford is committed to Excellence in Governance and Municipal Management.
Corporate Services
The myBrantford.ca is a user-friendly web portal that was established to allow the residents of Brantford to create an online connection to the City of Brantford. In 2014, the portal was expanded to allow for online bill payment services, making it easier and more convenient for residents to pay and register for services online. This tool is also utilized as a mechanism for community engagement when seeking feedback from the community as well as for information sharing.
www.myBrantford.ca ONLINE PORTAL
Other accomplishments & initiatives
2014 Municipal Election-Introduction of online voting
Developed 10 year Capital Plan
Upgrade of the City’s data network
infrastructure both downtown and at remote offices
Unified Communications-Finalization of project funding, implementation plan and project kickoff
Approval of the City of Brantford Accessibility Plan
Commission Priorities for 2015
Completed an in-depth Human Resources Master Plan
City’s Asbestos Management Plan was updated and implemented across the Corporation
Completion of Development Charges Background Study
Review the City’s Strategic Financial Plan
Expand Asset Management Strategy to include all divisions across the Corporation
Completion of a required pay equity and compensation review for all of the City’s exempt positions
Negotiation of a new 5 year Enforcement Services Agreement with the Brant County SPCA for the provision of Animal Control Services for the City
Implementation of updated software within the City’s Finance Department for the budgeting and accounts payable processes
Refresh Landfill Masterplan
Other accomplishments & initiatives
Established Asset Management Department and completed comprehensive Asset
Management Plan
Full-Corridor reconstruction of 15 sites and road resurfacing of 17 sites
Repaired 2,536 potholes
Pilot project for reloading Brantford Transit cards at Kiosk
Commission Priorities for 2015
Completed detail design and construction of Shellard Lane Improvements
Replaced 3,396 panels of sidewalk
Installed cameras and new digital radio equipment on Brantford Lift equipment
Implemented Enhanced Multi-residential Recycling Program
Implemented an Enhanced Sewer use program to address overload/treatment issues
Activity Tracking Tool and continuing condition assessments to support the Asset Management Strategy
Continue developing Accommodation Strategy for all City staff and services
Veterans Memorial Parkway improvements and extension
Wastewater Treatment Optimization Study
Purchase 3 new conventional transit and 5 new specialized transit buses
Develop and Review Green Infrastructure Strategy
Site security and accessibility improvements at City facilities
Ashgrove Street lighting upgrades and replacements
Through a comprehensive Water Treatment Plant Optimization Study supported by Council, the City of
Brantford was able to defer $27.75 million in capital expenditures by enhancing performance through
improved process control.
Public Health, Safety & Social Services
A neighbourhood hub is a neutral space where residents can come together that engage in enjoyable, enriching experiences. Hubs are located in logical community locations and are in walking distance for many residents. Through participating in Hub activities that interest them, residents build natural networks of social connectedness and support, develop local leadership capacity, learn about services, and create healthier lifestyles.
Over the long term, Hubs can become a place where people who are interested in making positive changes for themselves, their families and their community, gather. With engaged residents, neighbourhood renewal becomes possible.
NEIGHBORHOOD HUB PARTNERSHIP
Other accomplishments & initiatives
SAMS (Social Assistance Management System)
Brantford-Brant Housing Stability Plan 2014- 2024
Completion of comprehensive Master Aging Plan
Library received Award of Distinction – 2014 Downtown Champion by Downtown BIA
Commission Priorities for 2015 Assisted 1500+ individuals find appropriate shelter as part of the Homelessness Program
Maintained occupancy rate at John Noble Home of 97% or better
Establishment of Safe Brantford Office to support and coordinate long-term crime prevention initiatives
Development of a Capacity Building Model to strengthen the non-profit social service sector in Brantford
Develop community-wide Mental Health and Youth Services strategies
Carbon Monoxide Alarm Education and Health & Wellness Program
Implementation of Healthy Kids Community Challenge
Strategic planning and environmental scan to support the development of the Healthy Brantford initiative
Provide planning and administrative leadership for the Smart Brantford (Digital Inclusion) Initiative
Fire Station relocation and Training Facility Studies
The Neighborhood Hub working project, a 3 year pilot
program is a local initiative of our Social Services
Department to work in partnership with three area
schools to bring literacy programming to elementary
students.
City of Brantford has invested in creating a one-of a-kind world-class state of the art recreation facility that includes a new 4-pad arena, new 25 metre pool and hydro therapy pool to complement the existing 65 metre pool. The facility also features a fitness studio, fully-equipped weight room, dry land training room, indoor track, gymnasium, football field and more. The facility was completed in 2014 and is also home to our Sports Hall of Fame.
Total commitment to the expansion and redevelopment of the facility was $64.3 million which included a
$32.4 million commitment from the City as well as $31.9 million in funding contributions from the Federal and Provincial Build Canada Funding program.
Other accomplishments & initiatives
The City assisted 114 organizations granting
$539,000 to support valued programs and services
8 new industries and 10 business expansions
Downtown improvement grants of $884,250 were provided resulting in over $17 million in investment in the downtown area
Discover Brantford blog and e-newsletter launch
Established Rapid Response Team to reduce “red tape for developers”
Commission Priorities for 2015
Revitalization of Victoria Park
Northridge Renovation and Course Improvement Project completed
Joint Use Agreement at Sanderson Centre
Gretzky Gardenscape Project
Civic Centre Front Entrance and Seat Replacement
North of Shellard Recreation Centre and Sports Complex
Northridge Pro Shop/Maintenance Shop project
Kiwanis Field Artificial Surface Project
Greenwich Mohawk and Sydenham/Pearl brownfield remediation
Equipping main lobby at Sanderson Centre as a secondary performance space
The purpose of the City’s Strategic Financial Plan is a framework to guide City Council and the City’s departments, boards and committees in their financial planning and decision-making processes.
Through this, the outcome is to improve and strengthen the long-term financial health of the City.
Objectives
To focus on cost efficient and effective service and program delivery.
To maximize revenues through a variety of sources.
To use debt in a fiscally responsible manner.
To properly maintain and fund the City’s physical assets.
To account for and fund liabilities.
To ensure that user fees remain regionally competitive.
To ensure that growth will pay its fair share of growth related infrastructure costs.
To establish a stable and equitable tax burden policy for the community.
Financial Policies
Below are some of the financial policies adopted to assist in achieving the financial objectives listed above.
Financial Management Policy - Proposals for new services or service level adjustments
(mandatory or discretionary) will be presented to Finance Committee for consideration. These proposals shall include impacts on the operating and capital budgets, funding sources, human resource requirements, performance measures, and long-term financial impact.
Development Charges - The City will be guided by the principle that growth shall pay for itself.
User Fees - The City will strive to increase user fees as a percentage of overall funding by identifying new areas where user fees can be implemented and by ensuring that existing fees are updated based on increases in the associated costs to provide the service.
Asset Management and Liability Policies - The City will include increased funding within its annual Capital funding to include lifecycle costing for all of the City’s tangible capital assets to be fully implemented by 2017.
Capital Budget Management Process – The City has moved to a Ten-Year Capital Budget process with one year of detailed project information and ten years of financial information identified.
The Ten-Year Capital Budget will be reevaluated and updated on an annual basis by staff for consideration by Council.
Debt Management Policies – For Tax-Supported debt, debt carrying costs must be paid through the City’s Operating Budget, while for Rate-Supported debt, debt carrying costs must be paid through user fees.
Strategic Financial Plan
Operating Budget
The City of Brantford uses the budget as a means of allocating resources to provide services, and maintain the infrastructure that residents and businesses in the City of Brantford depend on.
Our operating budget process begins in June of each year with guidelines sent out to
departments, and runs through until the budget is passed, which for the 2014 budget year was January 27, 2014.
The operating budget provides for the everyday operation of our services. It includes salaries and benefits, the purchase of services from other groups, companies or agencies, along with costs for repairs and maintenance, materials and supplies.
The budget process requires each department and commission to review their existing budgets in comparison to historical spending based on their current level of service. In addition to a review of prior spending patterns, adjustments are made for known process improvements and efficiencies, the economic indicators of the community, and business plans of the
corporation as set out by Council. Department budgets are completed in early September and presented and reviewed by the Senior
Management Team followed by the Estimates Committee, concluding with an approved budget.
Capital Budget
Our capital budget has the same timeframe as that of our operating budget, with a common goal of balancing our immediate and future needs with affordability. Capital projects and assets include such things as vehicles, roads, bridges, water lines, buildings, software systems, and equipment.
At the City we use various forms of financing to support our capital plan, and this includes debt financing, funding from other levels of
government, reserved (accumulated from previous planning), the levy (current year taxes), etc.
The development of a long term capital forecast and the related financing strategy is needed to ensure our municipal infrastructure is maintained. The bulk of our capital spent occurs in our Public Works area (road network, water and sewer systems, facilities &
equipment, transit system and bridges), and to a smaller extend in Corporate Services
(information technology systems), Community
Services (parks, playgrounds and recreational
facilities), and Public Health (housing and
emergency services).
The Annual Audit Process
The City of Brantford annually prepares audited consolidated financial statements which comprise the consolidated statement of financial position as at December 31
st, and the consolidated statements of operations, cash flows and changes in net financial assets for the year then ended.
Auditor’s Responsibility
The external auditor is responsible for expressing an opinion on our consolidated financial statements based on their audit. The audit is conducted in accordance with
Canadian generally accepted auditing
standards which require that they comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the consolidated financial statements are free from material misstatement.
The audit is performed using procedures that assess the risk of material misstatement whether due to fraud or error. In their review, the auditor considers internal control relevant to the entity’s preparation and fair
representation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances.
Management’s Responsibility
Management’s responsibility for the financial statements is for the preparation and fair presentation of our consolidated statements in accordance with Canadian generally accepted accounting principles and for internal controls that management has deemed to be necessary for the financial statements to be free from material misstatement.
Councillor’s Responsibility
The mandate of Council is to provide
oversight to staff and the External auditors
and is responsible to review internal and
external reports, work plans, including the
External Auditor’s Annual Audit Plan, as
well as the consolidated financial
statements and audit report findings.
management in accordance with Canadian public sector accounting standards as recommended by the Public Sector Accounting Board of CPA Canada.
The consolidated financial statements include the assets, liabilities, revenue and expenses of the City.
The reporting entity is composed of all organizations, committees and local boards accountable for the administration of their financial affairs and resources to the City and which are owned or controlled by the City. These consolidated financial statements
include:
• Brant and Brantford Local Housing Corporation
• Brantford Downtown Business Improvement Area
• Brantford Municipal Non-Profit Housing Corporation
• Brantford Police Services Board
• Brantford Public Library
• John Noble Home
Government Business Enterprises include Brantford Energy Corporation. In accordance with Public Sector Accounting Standards this is accounted for on a modified equity basis in which the business
enterprise’s accounting principles are not adjusted to conform with those of the City, and inter-
organizational transactions and balances are not eliminated.
The City ‘s Trust Fund and their related operations administered by the municipality are not
consolidated but are reported separately.
Non-consolidated entities include the Brant County Health Unit.
The following information summarizes the financial results from the 2014 consolidated financial
statements.
Total Financial Assets at 2014 year end were $269.6 million (2013 $251.5 million). This represents an increase of $18.1 million over the prior year.
During 2014, cash and cash equivalents decreased by $39.1 million to $52.0 million (2013 $91.1 million). Additional cash from maturing investments in 2013 caused the cash balance to be unusually high. These
additional funds were subsequently re- invested at the beginning of 2014.
Taxes receivable decreased by $4.1 million in 2014 due to an increase in doubtful accounts combined with a decrease in tax receivable.
The balance at 2014 year end was $4.9 million (2013 $9.0 million).
Accounts and grants receivable were $16.8 million (2013 $14.1 million), an increase of
$2.7 million over 2013. The increase was
attributable to a billing cycle change on our
water and wastewater billings for 2014.
Investments increased by $56.3 million in 2014 due to the reinvestment of cash received in the prior year from maturing investments. The balance of investments at December 31, 2014 was $139.3 million (2013
$83.0 million).
Investment in Brantford Energy Corporation in 2014 increased by $2.4 million over the prior year. The balance at December 31, 2014 was
$30.0 million (2013 $27.6 million).
FINANCIAL LIABILITIES:
Total Financial Liabilities at 2014 year end were
$164.0 million (2013 $159.0 million), representing an increase of $5.0 million over the prior year.
Accounts payable and accrued liabilities decreased from $37.0 million in 2013 to $36.9 million in 2014 due to the timing of payments at year end.
Deferred revenues – obligatory reserve funds were $43.3 million in 2014 (2013 $46.4 million), representing a decrease of $3.1 million from the prior year due to greater
revenue earned as there was increase capital spending in 2014.
Post employment/retirement benefits were
$17.6 million in 2014 (2013 $17.1 million), representing an increase of $0.5 million.
Landfill closure and post closure liability increased from $13.9 million in 2013 to $24.7 million in 2014. The $10.8 million increase was due to an adjustment in the future liability estimate.
Net long term liabilities were $37.8 million (2013 $41.1 million) resulting in a decrease of
$3.3 million.
NON-FINANCIAL ASSETS:
Total Non-Financial Assets at year end were $720.1 million (2013 $728.3 million). This represents a decrease of $8.2 million resulting from the sale of land that was held as inventory.
Non-Financial Assets consist of tangible capital assets, inventories and prepaid expenses with
tangible capital assets representing over 97.8% of the
total balance.
Taxation revenues in 2014 totalled $131.3 million (2013 $128.5 million) which represents an increase of $2.76 million or 2.2% over the prior year.
User charges for 2014 were $56.8 million (2013 $55.0 million), an increase of $1.74 million or 3.2% over the prior year resulting primarily from a billing cycle change for water and
wastewater.
Government transfers for 2014 totalled $61.3 million (2013 $54.7 million). This represents an annual increase of $6.5 million that resulted largely from an increase in federal grant spending in 2014.
In 2014, deferred revenue earned was $7.3 million (2013 $2.0 million), an increase of $5.3 million over the prior year resulting from significant increases in development charge spending in 2014.
* Breakdown of Other revenue: %
Other 3.3%
Rents and concessions 2.8%
Deferred revenue earned 2.4%
Casino revenue 1.7%
Recoveries from other municipalities 1.3%
Contributed tangible capital assets 1.2%
Income from Brantford Energy Corporation 0.9%
Change in equity in Brantford Energy Company 0.8%
Interest earned on reserves and reserve funds 0.8%
Provincial Offences Act and other fines 0.7%
Licenses and permits 0.7%
Penalties and interest on taxes 0.6%
Investment income 0.4%
Total 17.56%
EXPENSES:
In 2014, Total Expenses including those classified as Other on the Consolidated Statement of Operations totalled $297.5 million (2013 $272.1 million) representing an increase of $25.4 million.
The increase consists primarily of the following:
• $11.6 million increase in environmental services expense from an adjustment made to the landfill closure and post closure liability estimate. Annual projected expenditures required to treat leachate from the Site had not been previously identified in the liability calculation.
• $4.0 million increase in costs for transportation services resulting from expenditures for the repairs and maintenance of neighbouring roads and other assets, as well as higher costs relating to the maintenance of fleet vehicles and equipment
• $2.5 million increase in costs relating to protection to persons and property resulting primarily from a combination of retroactive earnings and benefit adjustments
• General government - $12.3 million
• Protection to persons and property - $54.6 million
• Transportation services - $32.1 million
• Environmental services - $41.4 million
• Health services - $6.6 million
• Social and family services - $74.0 million
• Recreational and cultural services - $26.1 million
• Planning and development - $9.6 million
• Loss on disposal of assets - $7.5 million
• Amortization - $33.5 million
2014 Expenses by Service and Other Expenses (In $ millions)
Contracted services - $28.9 million
External transfers - $41.1 million
Amortization - $33.5 million
Debt servicing - $1.7 million
Other expenditures - $5.8 million
Loss on disposal of assets - $7.5 million
The following chart shows the percentage breakdown of expenses by type:
RESERVE FUNDS:
The City of Brantford manages several reserves and reserve funds for the main purposes of funding capital expenditure projects, mitigating the impact of future obligations, stabilizing operating costs and balancing specific budget items. In 2014, the balance of reserve and reserve funds was $108.2 million (2013 $96.4 million). This represents an increase of $11.8 million over the prior year. The City’s most significant reserve fund balances include; water and wastewater; social housing; transportation; sick leave; and insurance.
Reserves and reserve funds are included in the accumulated surplus balance.
Deferred revenues from obligatory reserve funds are reported on the Consolidated Statement of Financial Position and are comprised of contributions received from federal and provincial gas tax, development charges and other payments from developers for future projects. In 2014, the balance of deferred revenues - obligatory reserve funds was $43.3 million (2013 $46.4 million). This represents a decrease of $3.1 million from the prior year.
The reserve balances are monitored on an ongoing basis to ensure they remain sufficient to meet long-term financial commitments and to allow the City to take advantage of financial opportunities as they become known.
The following chart shows the historical trend of reserve and reserve fund balances since 2010:
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
To the Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Brantford
We have audited the accompanying consolidated financial statements of the Corporation of the City of Brantford, which comprise the consolidated statement of financial position as at December 31, 2014, and the consolidated statements of operations, change in net financial assets 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' 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 consolidated 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 auditors' 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 control 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, the consolidated financial statements present fairly, in all material respects, the financial position of the Corporation of the City of Brantford as at December 31, 2014, and the results of its operations, its changes in net assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.
June 11, 2015 CHARTERED PROFESSIONAL ACCOUNTANTS
Brantford, Ontario Licensed Public Accountants
Page 6 Millard, Rouse & Rosebrugh LLP
Brantford • Hagersville • Simcoe • Delhi • Norwich • Tillsonburg
Millards
Chartered Accountants
P.O. Box 367, 96 Nelson Street Brantford, Ontario N3T 5N3 Telephone: (519) 759-3511 Facsimile: (519) 759-7961
(Restated Note 2) FINANCIAL ASSETS
Cash and cash equivalents (Note 6) 52,030,701 91,159,464
Taxes receivable (Note 7) 4,865,004 8,994,408
Accounts and grants receivable (Note 8) 16,840,750 14,111,491
Inventories held for resale 44,481 42,275
Land held for resale 1,114,983 1,114,983
Investments (Note 9) 139,259,375 82,954,790
Investment in Brantford Energy Corporation (Note 10) 29,947,148 27,582,655 Note receivable - Brantford Power Inc. (Note 10) 24,189,168 24,189,168
Note receivable - Brantford Hydro Inc. (Note 10) 1,303,335 1,303,335
TOTAL FINANCIAL ASSETS 269,594,945 251,452,569
LIABILITIES
Accounts payable and accrued liabilities (Note 11) 36,889,613 37,023,753 Deferred revenues - obligatory reserve funds (Note 12) 43,334,339 46,413,329
Vested sick leave (Note 13) 3,183,725 3,028,812
Post employment/retirement benefits (Note 13) 17,630,658 17,149,935
Accrued interest on long term liabilities 442,497 464,283
Landfill closure and post closure liability (Note 14) 24,694,625 13,863,159
Net long term liabilities (Note 16) 37,795,207 41,062,145
TOTAL LIABILITIES 163,970,664 159,005,416
NET FINANCIAL ASSETS 105,624,281 92,447,153
NON-FINANCIAL ASSETS
Tangible capital assets (net) (Schedule 1) 704,329,844 707,288,204
Inventories (Note 3) 9,541,743 18,074,097
Prepaid expenses 6,183,941 2,957,403
720,055,528 728,319,704
NET ASSETS 825,679,809 820,766,857
ACCUMULATED SURPLUS (Note 18) 825,679,809 820,766,857
The accompanying notes are an integral part of theses financial statements Page 7
CONSOLIDATED STATEMENT OF OPERATIONS
As at December 31 Budget 2014 2013
(Note 26) (Restated Note 2)
REVENUES
Taxation 130,978,672 131,289,499 128,532,084
User charges (Note 19) 57,576,022 56,778,237 55,040,377
Government transfers 59,875,954 61,269,988 54,734,289
Rents and concessions 8,488,239 8,628,530 8,605,740
Investment income 1,215,000 1,169,406 1,134,686
Interest earned on reserves and reserve funds 2,254,209 2,298,999 1,951,241
Recoveries from other municipalities 3,189,871 3,979,285 4,379,539
Casino revenue 5,100,000 5,064,697 4,681,243
Deferred revenue earned 8,182,767 7,338,007 2,003,412
Provincial Offenses Act and other fines 2,115,050 2,177,994 2,242,634
Licenses and permits 2,380,352 2,044,832 1,925,610
Penalties and interest on taxes 2,100,000 1,706,372 1,898,764
Income from Brantford Energy Corporation (Note 20) 2,601,362 2,651,362 2,651,362
Other (Note 21) 6,423,025 10,106,915 8,485,645
TOTAL REVENUES 292,480,523 296,504,123 278,266,626
EXPENSES
General government 11,066,512 12,255,702 12,388,354
Protection to persons and property 55,288,384 54,551,981 52,101,813
Transportation services 30,878,981 32,060,643 28,079,927
Environmental services 41,379,657 41,381,988 29,758,481
Health services 6,603,786 6,635,106 6,845,744
Social and family services 75,833,330 73,978,827 74,422,371
Recreational and cultural services 25,800,987 26,061,518 25,075,298
Planning and development 9,821,058 9,563,581 11,107,124
TOTAL EXPENSES 256,672,695 256,489,346 239,779,112
INCOME BEFORE UNDER-NOTED ITEMS 35,807,828 40,014,777 38,487,514 OTHER INCOME/(EXPENSE)
Contributed tangible capital assets 3,594,089 3,594,089 3,701,835
Loss on disposal of tangible capital assets and land inventory (7,534,463) (7,534,463) (392,401) Amortization of tangible capital assets (33,257,468) (33,525,944) (31,944,084) Change in equity in Brantford Energy Corporation - 2,364,493 (9,927,977) (37,197,842) (35,101,825) (38,562,627) ANNUAL SURPLUS (DEFICIT) FROM OPERATIONS (1,390,014) 4,912,952 (75,113) ACCUMULATED SURPLUS, BEGINNING OF YEAR 820,766,857 820,766,857 820,841,970 ACCUMULATED SURPLUS, END OF YEAR 819,376,843 825,679,809 820,766,857
The accompanying notes are an integral part of theses financial statements Page 8
Annual Surplus (1,390,014) 4,912,952 (75,113) Amortization of tangible capital assets 33,525,944 33,525,944 31,944,084 Contributed (Donated) tangible capital assets (3,594,089) (3,594,089) (3,701,835) Acquisition of tangible capital assets (31,545,600) (31,545,600) (26,018,876) Loss/(Gain) on disposal of tangible capital assets
and land inventory 7,534,463 7,534,463 392,401
Proceeds on disposal of tangible capital assets 52,021 52,021 21,818
Acquisition of inventory and prepaid expense - 2,291,437 (6,660,366)
Increase (Decrease) in Net Financial Assets 4,582,725 13,177,128 (4,097,887) Net Financial Assets, Beginning of Year 92,447,153 92,447,153 96,545,040 Net Financial Assets, End of Year 97,029,878 105,624,281 92,447,153
The accompanying notes are an integral part of theses financial statements Page 9
CONSOLIDATED STATEMENT OF CASH FLOWS
As at December 31 2014 2013
(Restated Note 2)
OPERATING
Annual Surplus (Deficit) 4,912,952 (75,113)
Sources (Uses) of Cash:
Taxes receivable 4,129,404 (66,598)
Accounts receivable (2,729,259) 3,782,550
Accounts payable and accruals (134,140) (6,739,730)
Contributed (Donated) tangible capital assets (3,594,089) (3,701,835) Deferred revenues - obligatory reserve funds (3,078,990) 5,120,200
Employee benefits and interest 613,850 284,882
Landfill closure and post closure liability 10,831,466 229,006
Other financial assets (2,206) (1,041)
Inventories and prepaid expenses 2,291,437 (6,660,366)
13,240,425 (7,828,045) Non cash charges to operations:
Amortization 33,525,944 31,944,084
Loss on disposal of tangible capital assets and land inventory 7,534,463 392,401 41,060,407 32,336,485 Cash provided by operating transactions 54,300,832 24,508,440
CAPITAL
Acquisition of tangible capital assets (31,545,600) (26,018,876)
Proceeds on disposal of tangible capital assets 52,021 21,818
Cash applied to capital transactions (31,493,579) (25,997,058)
INVESTING
(Increase)/Decrease of investments (56,304,585) 22,999,705
(Increase)/Decrease of investment in Brantford Energy Corporation (2,364,493) 9,927,977 Cash provided by (applied to) investing transactions (58,669,078) 32,927,682
FINANCING
Long term debt issued - 1,350,000
Long term debt repaid (3,266,938) (3,041,613)
Cash applied to financing transactions (3,266,938) (1,691,613) Net Change in Cash and Cash Equivalents (39,128,763) 29,747,451
Opening Net Cash and Cash Equivalents 91,159,464 61,412,013
Closing Net Cash and Cash Equivalents 52,030,701 91,159,464
The accompanying notes are an integral part of theses financial statements Page 10
The Corporation of the City of Brantford is a Municipality in the Province of Ontario, Canada. It conducts its operations guided by the provisions of provincial statutes such as the Municipal Act and related legislation.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Corporation of the City of Brantford (the “City”) are prepared by management in accordance with Canadian public sector accounting standards as recommended by the Public Sector Accounting Board of CPA Canada.
The preparation of financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the period. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgment. Actual results could differ from these estimates. Significant aspects of the accounting policies adopted by the City are as follows:
(a) Reporting Entities
(i) The consolidated financial statements include the assets, liabilities, revenues and expenses, of the City.
The reporting entity is composed of all organizations, committees and local boards accountable for the administration of their financial affairs and resources to the City and which are owned or controlled by the City. These consolidated financial statements include:
Brant and Brantford Local Housing Corporation Brantford Downtown Business Improvement Area Brantford Municipal Non-Profit Housing Corporation Brantford Police Services Board
Brantford Public Library John Noble Home
Inter-departmental and inter-organizational transactions and balances between these organizations have been eliminated.
(ii) Effective January 1, 2002, the City entered into a service agreement with the Brant and Brantford Local Housing Corporation whereby the Housing Corporation transferred all operations to the City. The Housing Corporation has retained title to its physical assets in the capacity of bare trustee for the benefit of the City.
(iii) Non-Consolidated Entities
The following local boards, joint local boards, municipal enterprises and utilities are not consolidated:
Brant County Health Unit
Page 11
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 20141. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a) Reporting Entities (continued)
(iv) Accounting for School Board Transactions
The taxation, other revenues, expenditures, assets and liabilities with respect to the operations of the school boards are not reflected in the accumulated surplus of these financial statements.
(v) Trust Funds
Trust funds and their related operations administered by the municipality are not consolidated, but are reported separately on the Trust Funds statement of continuity and statement of financial position.
(vi) Brantford Energy Corporation
Brantford Energy Corporation is accounted for on a modified equity basis, consistent with the Canadian public sector accounting standards for government business enterprises. Under the modified equity basis, the business enterprise’s accounting principles are not adjusted to conform with those of the City, and inter-organizational transactions and balances are not eliminated.
(b) Basis of Accounting
(i) Accrual Basis of Accounting
The consolidated financial statements are prepared using the accrual basis of accounting. The accrual basis of accounting records revenue as it is earned and measurable. Expenses are recognized as they are incurred and measurable based upon receipt of goods or services and/or the creation of a legal obligation to pay.
(ii) 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. The change in non-financial assets during the year, together with the excess of revenues over expenses, provides the change in net financial assets for the year.
(ii) a) Tangible Capital Assets
Under Canadian public sector accounting standards guidelines, tangible capital assets are recorded at their historical cost and amortized over their estimated useful life. Tangible capital assets are defined as non-financial assets with an estimated useful life greater than 1 year, held for use in the production or supply of goods and services, not held for resale, in continuous use, and valued in excess of an established financial threshold.
The capitalization threshold for general assets is $5,000 and $25,000 for infrastructure assets.
Individual tangible capital assets with lesser value are expensed and groups of similar assets, such as library books, fire hoses, or street signs, are recorded as pooled assets based on their year of acquisition.
Page 12
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Basis of Accounting (continued)
(ii) a) Tangible Capital Assets (continued)
Tangible capital assets are recorded at cost which includes amounts directly attributable to the acquisition, construction, development or betterment of the assets. The cost is amortized on a straight-line basis over their estimated useful lives as follows:
Buildings 10 - 50 years
Vehicles:
Transit buses 12 years
Vehicles 5 - 15 years
Computer hardware and software 4 - 15 years Other:
Machinery and equipment 10 - 20 years
Land improvements 10 - 30 years
Waste, wastewater plants and networks:
Underground networks 50 - 75 years
Water and wastewater plants and facilities 30 - 100 years Transportation:
Roads 15 - 50 years
Bridges, culverts, etc. 20 - 40 years
Expected useful lives are determined based on experience with the asset. Revisions to the estimates may be caused by upgrades or renewal expenditures that result in a change in the service level of the asset or may revise the life expectancy. These estimates and potential impairment of the tangible capital assets are reviewed annually.
Amortization is calculated beginning in the month the asset is put into service. Assets under construction are not amortized until the asset is available for productive use.
b) Contribution of Tangible Capital Assets
Tangible capital assets received as contributions are recorded at their fair market value at the date of receipt.
c) Leases
Leases are classified as capital leases if they transfer substantially all of the benefits and risks incidental to ownership of property. Leased capital assets are recorded as tangible capital assets.
d) Inventories
Inventories held for consumption are not considered tangible capital assets.
(iii) Cash and Cash Equivalents
Cash and cash equivalents are comprised of cash on hand, cash held in financial institutions and short term investments with maturities of 365 days or less.
Page 13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 20141. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Basis of Accounting (continued) (iv) Government Transfers
Government transfers are recognized in the financial statements as revenues in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met and reasonable estimates of the amounts can be made.
(v) Taxation Revenue
Taxation revenue is recorded when property tax bills are levied. Taxation revenue recognized each year is adjusted for estimates for expected supplementary taxes, appeals and non-collectible taxes.
(vi) Deferred Revenues - Obligatory Reserve Funds
Deferred revenues represent developer and user charges, Federal and Provincial gas tax revenue, Federal and Provincial transit capital funding, Move Ontario roads and bridges capital funding, and B-Home housing program which have been collected, but for which the related services have yet to be performed.
These amounts will be recognized as revenues in the fiscal year the services are performed.
(vii) Land Held for Resale
Land held for resale is recorded at the lower of cost and net realizable value. Cost includes amounts for improvements to prepare the land for sale or servicing.
2. RESTATEMENT OF 2013 COMPARATIVE FIGURES
During the 2014 year, it was determined that deferred revenue was incorrectly calculated in previous years.
This error resulted in changes to the opening accumulated surplus, deferred revenue earned, deferred revenue obligatory reserve fund, and closing accumulated surplus for 2013. During 2014 it was also determined that two parcels of land for resale were not included in the financial statements in previous years. This error resulted in changes to the opening accumulated surplus, land for resale and closing accumulated surplus for 2013. The total impact of correcting these items in the 2013 comparative figures is as follows:
As Previously 2013
Reported Adjustment As Restated
Opening Accumulated Surplus 825,847,649 (5,005,678) 820,841,971
Deferred revenue earned 680,879 1,322,533 2,003,412
Deferred Revenue - Obligatory Fund 41,615,201 4,798,128 46,413,329
Land for resale - 1,114,983 1,114,983
Closing Accumulated Surplus 824,450,003 (3,683,146) 820,766,857
Page 14
3. INVENTORIES 2014 2013
Inventories of supplies 584,923 303,485
Land and rehabilitation costs 8,956,820 17,770,612
9,541,743 18,074,097
4. CONTRIBUTIONS TO NON-CONSOLIDATED JOINT BOARDS
Further to Note 1(a)(iii), the following contributions which are included as an expense on the consolidated statement of operations were made by the municipality to these boards:
2014 2013
Brant County Health Unit 2,239,587 2,138,869
5. TRUST FUNDS
Trust funds administered by the Municipality amounting to $3,821,592 (2013 - $3,791,118) have not been included in the consolidated statement of financial position nor have their operations been included in the consolidated statement of operations.
6. CASH AND CASH EQUIVALENTS
Short term investments are used by the City to invest excess cash until required to meet the City’s current financial obligations.
2014 2013
Cash 15,710,545 40,220,693
Short term investments 36,320,156 50,938,771
52,030,701 91,159,464
7. TAXES RECEIVABLE 2014 2013
Taxes receivable 11,125,888 13,389,957
Allowance for doubtful accounts (6,260,884) (4,395,549)
4,865,004 8,994,408
Page 15
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 20148. ACCOUNTS AND GRANTS RECEIVABLE 2014 2013
Accounts receivable 12,175,906 10,241,486
Grant receivable - Federal 2,366,629 1,378,943
Grant receivable - Provincial 2,298,215 2,491,062
16,840,750 14,111,491
9. INVESTMENTS
The total investments of $139,259,375 (2013 - $82,954,790) recorded on the consolidated statement of financial position at cost, having a market value of $139,816,471 (2013 - $84,055,689) at the end of the year are comprised of the following:
2014 2013
Provincial 5,126,997 4,042,280
Municipal - own 3,954,041 4,354,871
Municipal - other 17,419,423 10,557,196
Bank 112,758,914 64,000,443
139,259,375 82,954,790
10. INVESTMENT IN BRANTFORD ENERGY CORPORATION
(a) In compliance with provincial legislation enacted to restructure the electricity industry in Ontario, Council approved the incorporation of the business of the former Brantford Hydro-Electric Commission (“the Commission”). Through its 100 per cent interest in Brantford Energy Corporation, the City retains its interest in the electricity business conducted by Brantford Energy Corporation’s wholly-owned subsidiaries, Brantford Power Inc., Brantford Hydro Inc. and Brantford Generation Inc. The four companies are incorporated under the Ontario Business Corporations Act. Brantford Power Inc. provides regulated electricity distribution services, Brantford Hydro Inc. provides fibre optics networks, water heater rental and sentinel lighting services and Brantford Generation Inc. provides electricity generation.
The notes receivable of $25,492,503 are made up of two notes. The Brantford Power Inc. note of $24,189,168 is payable, interest only, at 5.87% per annum, with principal due February 1, 2016. The Brantford Hydro Inc.
note of $1,303,335 is payable, interest only, at 6.25% per annum, with principal due February 1, 2016. The City has the option to extend the maturity date for successive five year periods. The City also has the option to convert the principal sum of the notes into common shares of the corporation at a conversion ratio of $100 per common share.
Page 16
10. INVESTMENT IN BRANTFORD ENERGY CORPORATION (continued)
(b) The following table provides condensed financial information in respect of the consolidated operations of Brantford Energy Corporation for the year ended December 31:
As at December 31 2014 2013
Current assets 36,143,736 38,102,322
Non-current assets 8,419,893 12,597,664
Property, plant and equipment 66,508,141 62,958,070
Total Assets 111,071,770 113,658,056
Current liabilities 31,814,404 31,738,882
Long term debt 43,361,039 44,446,920
Long term customer deposits and other liabilities 3,759,804 7,682,462
Post employment benefits 2,189,375 2,207,137
Total Liabilities 81,124,622 86,075,401
Net Equity 29,947,148 27,582,655
Results of Operations:
Revenues 24,858,136 23,867,811
Operating expenses 21,369,990 32,778,131
Net Income (Loss) 3,488,146 (8,910,320)
The City’s investment is comprised of the following:
Equity - Beginning of Year
Common shares 23,895,512 23,895,512
Prior years accumulated net income 3,687,143 13,615,120
27,582,655 37,510,632
Net income (loss) for the year 3,488,146 (8,910,320)
Dividends (1,150,000) (1,150,000)
Other Comprehensive Income (Loss) 26,347 132,343
Change in equity for the year 2,364,493 (9,927,977)
Equity - End of Year 29,947,148 27,582,655
Notes receivable 25,492,503 25,492,503
Net Investment 55,439,651 53,075,158
Page 17
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 201411. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are comprised of the following:
2014 2013
Trade payables 18,441,950 16,887,150
Deposits/Unearned revenue 12,102,759 13,402,675
Payable to the provincial and federal government 6,344,904 6,733,928 36,889,613 37,023,753
12. DEFERRED REVENUES - OBLIGATORY RESERVE FUNDS
(a) A requirement of the public sector accounting standards of CPA Canada is that obligatory reserve funds be reported as deferred revenue. This requirement is in place as provincial legislation restricts how these funds may be used and under certain circumstances these funds may possibly be refunded. The balances in the obligatory reserve funds of the City are summarized as follows:
2014 2013
(Restated Note 2)
Development charges 27,492,767 28,590,565
Subdivision contributions 2,308,266 2,303,317
Recreational land (The Planning Act) 440,521 313,344
Federal gas tax revenues 7,259,243 9,513,570
Provincial gas tax revenues 2,858,453 3,343,437
Provincial roads and bridges capital funding 31,183 31,482
B-Home Housing Program 154,621 172,476
Building Code Act 2,789,285 2,145,138
43,334,339 46,413,329
Page 18
12. DEFERRED REVENUES - OBLIGATORY RESERVE FUNDS (continued)
(b) Continuity of deferred revenue is as follows:
2014 2013
(Restated Note 2)
Balance, beginning of year 46,413,329 41,223,959
Contributions from :
Federal gas tax 5,571,180 5,533,279
Provincial gas tax 622,493 1,229,766
Development charges act 5,468,032 3,863,366
Developers and others 879,028 500,401
Interest earned 899,131 787,766
Total revenue 13,439,864 11,914,578
Deferred revenue utilized:
Federal gas tax 8,006,497 3,596,494
Provincial gas tax 1,174,349 1,125,302
Development charges 7,115,341 1,694,304
Developers and others 222,667 309,108
Total deferred revenue utilized 16,518,854 6,725,208
Balance, end of year 43,334,339 46,413,329
Page 19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended December 31, 201413. POST EMPLOYMENT/RETIREMENT BENEFITS
The City provides certain employee benefits which will require funding in future periods. Under the sickleave benefit plan, unused sick leave can accumulate and employees may become entitled to a cash payment when they leave the City’s employment. The City also has obligations for amounts owing to former employees under the Workplace Safety and Insurance Board permanent partial disability pension and for amounts owing under various benefit programs. An actuarial valuation of future liabilities was completed in January 2012 and forms the basis for the estimated liability reported in these financial statements.
The weighted average assumptions used in the valuation were as follows:
2014 2013
Discount rate 3.50% 3.75%
Average compensation increase 2.50% 2.50%
Healthcare cost increases
Initial rate 9.00% 9.00%
Ultimate rate 5.00% 5.00%
Grading period 15 years 15 years
Post Employment/Retirement Benefits Medical, Dental,
Life Insurance
Sick Leave Gratuity
Disability Benefits
Total Benefits 2014
Total Benefits 2013 Accrued Benefit End of
Prior Year 13,427,663 2,832,738 564,982 16,825,383 15,509,654
Accrued Benefit
Obligation at Jan. 1 13,427,663 2,832,738 564,982 16,825,383 15,509,654
Current Period
Benefit Cost 671,301 194,889 - 866,190 787,377
Retirement
Interest Expense 516,828 103,521 20,071 640,420 623,915
Estimated Benefit
Payment (633,777) (149,956) (59,497) (843,230) (1,009,768)
Prior Period Cost of
Plan Amendment - - - - 485,391
(Gains) Losses 426,266 63,242 14,885 504,393 428,814
Accrued Benefit Obligation as at
December 31 14,408,281 3,044,434 540,441 17,993,156 16,825,383
Unrecognized
Gains (Losses) 2,681,936 139,291 - 2,821,227 3,353,364
Liability as at December 31 17,090,217 3,183,725 540,441 20,814,383 20,178,747
The City and the Brantford Public Library have established reserves to mitigate the future impact of these obligations, as disclosed in Note 24. The balance at the end of the year is $3,724,112 (2013 - $3,576,674).
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