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Home My Public Portal About2020-03-31_Report_Consolidated Financial Statements Consolidated Financial Statements Municipality of the District of Chester March 31, 2020 Contents Page Consolidated Financial Statements Municipality of the District of Chester Management's Responsibility Statement 1 Independent Auditor's Report 2 - 3 Consolidated Statement of Operations 4 Consolidated Statement of Change in Net Financial Assets 5 Consolidated Statement of Financial Position 6 Consolidated Statement of Cash Flows 7 Notes to the Consolidated Financial Statements 8 - 21 Schedules to Consolidated Statement of Operations 22 - 27 Grant Thornton LLP 4th Floor, Dawson Centre 197 Dufferin Street Bridgewater, NS B4V 2G9 T +1 902 543 8115 F +1 902 543 7707 Audit | Tax | Advisory © Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 2 Independent auditor’s report To the Council of the Municipality of the District of Chester Opinion We have audited the consolidated financial statements of Municipality of the District of Chester (“the Municipality”), which comprise the consolidated statement of financial position as at March 31, 2020, and the consolidated statements of operations, change in net financial assets and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Municipality of the District of Chester as at March 31, 2020, and its results of operations, its changes in its net financial assets, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the Municipality in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter Without modifying our opinion, we draw attention to Note 2 of the consolidated financial statements, which indicates certain comparative information has been restated for the year ended March 31, 2019. Other Matter – Supplementary Financial Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The current year’s supplementary information included in the Schedules on pages 22 to 27 are presented for purposes of additional analysis and are not a required part of the consolidated financial statements. Such information has been subjected to the auditing procedures applied, only to the extent necessary to express an opinion, in the audit of the consolidated financial statements taken as a whole. Responsibilities of Management and Those Charged with Governance for the Consolidated 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. Audit | Tax | Advisory © Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 3 In preparing the consolidated financial statements, management is responsible for assessing the Municipality’s ability to continue as a going concern, disclosing, as applicable, matters related to a going concern and using the going concern basis of accounting unless management either intends to liquidate the Municipality or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Municipality’s financial reporting process. Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: •Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. •Obtain an understanding of internal control relevant to the audit 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 Municipality's internal control. •Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. •Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Municipality's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Municipality to cease to continue as a going concern. •Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants Bridgewater, Canada July 23, 2020 Municipality of the District of Chester (Restated - Consolidated Statement of Operations see Note 2) Year Ended March 31 2020 2020 2019 Page Budget Actual Actual Revenue Taxes 22 $ 12,224,019 $ 12,445,966 $ 11,915,316 Grants in lieu of taxes 23 174,532 185,627 185,683 Sales of services 23 4,598,714 4,003,759 2,749,377 Other revenue from own sources 23 722,816 943,134 859,391 Transfers from Federal and Provincial governments and agencies Unconditional 24 139,341 102,424 108,468 Conditional 24 43,000 85,845 32,542 Grants for capital projects 24 1,232,300 1,206,329 937,728 Interest 50,000 532,971 413,530 Gain on disposal of assets - 144,162 - $ 19,184,722 $ 19,650,217 $ 17,202,035 Expenditures General government services 25 $ 4,404,586 $ 3,981,763 $ 3,757,872 Protective services 26 2,875,078 2,633,015 2,551,984 Transportation services 26 858,969 1,224,465 1,074,955 Environmental health services 26 7,007,983 6,389,975 4,829,988 Environmental development services 27 1,506,996 1,330,791 1,306,890 Recreational and cultural services 27 927,314 874,400 826,074 Loss on disposal of assets - - 15,200 $ 17,580,926 $ 16,434,409 $ 14,362,963 Annual surplus $ 1,603,796 $ 3,215,808 $ 2,839,072 Accumulated surplus, beginning of the year 32,070,974 28,723,945 Prior period adjustment (Note 2)2,155,723 2,663,680 Accumulated surplus, beginning of the year restated 34,226,697 31,387,625 Accumulated surplus, end of the year $ 37,442,505 $34,226,697 See accompanying notes and schedules to the consolidated financial statements. 4 Municipality of the District of Chester (Restated - Consolidated Statement of Change in Net Financial Assets see Note 2) Year Ended March 31 2020 2020 2019 Budget Actual Actual Annual surplus $ 1,603,796 $ 3,215,808 $2,839,072 Acquisition of tangible capital assets - (933,685) (1,527,017) Write off of tangible capital assets - 5,624 24,200 Amortization of tangible capital assets 1,673,299 2,571,107 2,933,557 3,277,095 4,858,854 4,269,812 Decrease (increase) in other non-financial assets - 34,154 (34,154) (Increase) decrease in prepaid expense - (3,494) 11,354 Increase in net financial assets 3,277,095 4,889,514 4,247,012 Net financial assets Beginning of year 7,080,691 7,080,691 2,833,679 End of year $ 10,357,786 $ 11,970,205 $7,080,691 See accompanying notes and schedules to the consolidated financial statements. 5 Municipality of the District of Chester (Restated - Consolidated Statement of Cash Flows see Note 2) Year Ended March 31 2020 2019 Cash and cash equivalents provided by (used): Operating activities Annual surplus $ 3,215,808 $2,839,072 Amortization of tangible capital assets 2,571,107 2,933,557 Write off of tangible capital assets 5,623 24,200 5,792,538 5,796,829 Changes in non-cash working capital (Increase) decrease in receivables (59,099) 2,030,172 (Increase) decrease in prepaid expenses (3,493) 11,354 Decrease (increase) in other non-financial assets 34,154 (34,154) (Decrease) increase in payables (905,262) 1,218,825 Decrease in employee future benefits (8,586) (7,976) Increase in deferred revenue 53,945 49,543 Increase (decrease) in tax sale surplus 94,386 (34,371) Increase (decrease) in landfill closure costs liability 1,011,540 (1,052,774) 6,010,123 7,977,448 Capital transactions Acquisition of tangible capital assets (933,685) (1,527,017) (933,685) (1,527,017) Financing activities Proceeds from issuance of long term debt ‐ 2,938,104 Repayment of short term debt ‐ (2,592,000) Repayment of long term debt (1,663,243) (1,437,833) (1,663,243) (1,091,729) Increase in cash and cash equivalents 3,413,195 5,358,702 Cash and cash equivalents Beginning of year 23,039,527 17,680,825 End of year $ 26,452,722 $23,039,527 See accompanying notes and schedules to the consolidated financial statements. 7 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 1. Significant accounting policies a) Reporting entity b) Basis of accounting c) Valuation allowance d) Cash and cash equivalents e) Use of estimates f) Landfill closure costs g) Contaminated sites i. an environmental standard exists; ii. contamination exceeds the environmental standard; iii. the Municipality of the District of Chester: is directly responsible; or accepts responsibility; and iv. a reasonable estimate of the amount can be made. As at March 31, 2020 there are no known contaminated sites identified. 8 The consolidated financial statements of the Municipality of the District of Chester (the "Municipality") are prepared by management in accordance with Canadian Public Sector Accounting Standards (PSAS). Significant aspects of the accounting policies adopted by the Municipality are as follows: The consolidated financial statements reflect the assets, liabilities, revenues, expenditures and changes in accumulated surplus and in financial position of the reporting entity. The reporting entity is comprised of all organizations and enterprises accountable for the administration of their affairs and resources to the Municipality and which are owned or controlled by the Municipality. Interdepartmental and organizational transactions and balances are eliminated. The consolidated entity consists of are the general operating fund, general capital fund, operating reserve fund and the capital reserve fund. The accrual basis of accounting followed in the financial statement presentation includes recognizing revenues in the period in which the transactions or events occurred that gave rise to the revenues and expenditures in the period the goods and services are acquired and a liability is incurred. The Municipality provides a valuation allowance for estimated losses that will be incurred in collecting receivables outstanding. Cash and cash equivalents include cash on hand and balances with banks, bank overdrafts, and highly liquid temporary money instruments with original maturities of three months or less. Bank borrowings are considered to be financing activities. The presentation of financial statements, in conformity with PSAS, requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Significant items subject to such estimates and assumptions include the carrying amount of tangible capital assets, valuation allowances for receivables, assets and obligations related to employees future benefits and landfill closure liability. Actual results could differ from those reported. The Municipality operates a solid waste landfill site. Landfill closure costs for the landfill site include closure costs at retirement for capping the cells as well as post closure costs for ongoing environmental monitoring. An engineering report measures total capacity, capacity remaining and estimates the closure and post closure costs. These factors together with assumptions for timing of closure, annual inflation and rate of return are used to calculate the net present value of the cost. These costs are recognized as the landfill's capacity is used and this accumulated amount is the amount of the landfill closure cost liability at year end. The factors used in the calculation will be reviewed annually to assess their ongoing appropriateness. Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard. The liability would be recorded net of any expected recoveries. A liability for remediation of contaminated sites would be recognized when all the following criteria are met: Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 1. Significant accounting policies (continued) h) Revenue and expenditure Tax and related revenue Government transfers Other revenues i) Tangible capital assets Buildings - Plants 20 years Electronic Data Equipment 3 years Lagoons 10 years Land Improvements 20 years Landfill as estimated capacity is utilized Machinery and Equipment 5-10 years Municipal Buildings 40 years Sewer Lines 50 years Sidewalks 20 years Small Equipment 5 years Streets, Roads & Curbs 25 years Vehicles 5 years Wharves 25 years Wind Turbines 20 years j) Budget figures 9 Property tax billings are prepared by the Municipality based on assessment rolls issued by the Property Valuation Services Corporation (PVSC). Tax rates are established annually by Council during the budget approval process. Tax adjustments as a result of appeals and re- assessment are recorded when the result of the appeals process is known. Grant proceeds from other governments are recognized as revenue when the transfer is authorized and eligibility criteria and stipulations are met. Grant proceeds where eligibility criteria and stipulations are not met are recorded as deferred revenue. The accrual basis of accounting is used for all funds. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are recognized as they are incurred and measurable as a result of legal obligation to pay. The budget figures contained in these consolidated financial statements were approved by council on June 27, 2019 in its original fiscal plan. Note 22 outlines the original fiscal plan and the adjustments made to come to the budget figures shown in these consolidated financial statements. Other revenues are recognized as services or goods are provided, the exchange amount is measurable and collectability of the amount is reasonably assured. Tangible capital assets are recorded at cost, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets is amortized on a straight-line basis over the estimated useful life as follows: Full amount of the annual amortization is charged in the year of acquisition except for wind turbines. Wind turbines are amortized beginning on the date power generation occurs in accordance with the provincial community feed-in tariff (COMFIT) program agreement. Assets under construction are not amortized until the asset is available for productive use. All costs associated with placing an asset in service, including freight, installation costs, site preparation costs, alterations and professional fees are included in the capitalized value. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 2. Prior Period Adjustment As previously reported Adjustment As restated Consolidated statement of financial position Tangible capital assets 24,782,989$ 2,155,723$ 26,938,712$ Accumulated surplus 32,070,974 2,155,723 34,226,697 Consolidated statement of operations Environmental health services expense 4,322,031 507,957 4,829,988 Annual surplus 3,347,029 (507,957) 2,839,072 Accumulated surplus, beginning of the year 28,723,945 2,663,680 31,387,625 Accumulated surplus, end of the year 32,070,974 2,155,723 34,226,697 3. Contributions to boards and commissions Lunenburg County Regional Housing Authority Responsible for 11.00% share of operations in Western Shore Unit Responsible for 11.00% share of operations in New Ross Unit South Shore Regional Library Board - 17.94% share During 2020, the Municipality paid $68,715 (2019 - $68,715) to the South Shore Regional Library Board. Regional Economic Network During 2020, the Municipality paid $nil (2019 - $20,201) to the Regional Economic Network (final year as wound up in 2019). 4. Contributions to provincial government departments & agencies Corrections contribution Education contribution Assessment services contribution 10 The required contribution to the South Shore Regional School Centre for Education is calculated using the mandatory municipal education rate (set by the Minister of Education) times the Municipality's uniform assessment. For 2020 the education tax rate of $.3048 (2019 - $.3048) per $100 of uniform assessment times the uniform assessment of $1,626,914,001 (2019 - $1,598,816,174) for a total amount paid of $4,958,834 (2019 - $4,783,192). During the year, it was identified that the estimated useful life of the landfill tangible capital assets did not reflect the most recent capacity amounts estimated in the landfill liability engineering reports. As the amortization of landfill tangible capital assets is based upon utilization of the estimated capacity, the use of a lower capacity number resulted in higher amortization expense being recorded. The required contribution for assessment services is calculated first using an amount, set by the PVSC, to be recovered from all municipal units for 2020 $17,695,392 (2019 - $17,433,884). Fifty percent of this recovery amount is allocated among municipal units using each unit's uniform assessment as a percentage of provincial uniform assessment. The other fifty percent is allocated using each unit's number of assessment accounts as a percentage of the provincial assessment accounts. During 2020 the Municipality paid $352,585 (2019 - $347,880) to the PVSC for assessment services. The Municipality, along with other municipal units in Lunenburg County, is required to provide funding for the operations of various Boards and regional authorities. In addition to any budgeted contributions, the municipal units share in the deficit or surplus of these Boards based on their sharing percentages. The municipality's share of the surplus or deficit is set up as payable to, or receivable from, the Boards. During 2020, the Municipality incurred costs payable of $20,000 (2019 - $21,366) to the Lunenburg County Regional Housing Authority as its share of operations. As a result of this error, the prior period balances have been retrospectively restated. The consolidated financial statements at March 31, 2019 have been increased (decreased) by the following amounts: The Municipality, along with other municipal units in Lunenburg County, is required to finance the operations of various provincial departments based upon formulas defined in legislation. The required contribution for corrections is set by the Province, to be recovered from all municipal units. During 2020, the Municipality paid $235,600 (2019 - $236,665) to the province for correction services. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 5. Cash and cash equivalents The Cash and cash equivalents amount on the Consolidated Statement of Financial Position includes portfolio investments as follows: Operating Capital Reserves 2020 2019 Cash $ 1,760,147 $ 85,605 $ 12,109,970 $ 13,955,722 $ 10,804,708 Short term investments (GICs) - - 12,497,000 12,497,000 12,234,819 $ 1,760,147 $ 85,605 $ 24,606,970 $ 26,452,722 $ 23,039,527 Operating Capital Reserves 2020 2019 Gas tax grant program $ - $ - $ 3,252,954 $ 3,252,954 $2,855,508 Tax sale surplus account 301,020 - - 301,020 202,335 Landfill closure costs - - 8,673,843 8,673,843 7,638,141 Unrestricted cash 1,459,127 85,605 12,680,173 14,224,905 12,343,543 $ 1,760,147 $ 85,605 $ 24,606,970 $ 26,452,722 $ 23,039,527 6. Receivables 2020 2019 Taxes receivable - rate roll:Current 2018 Year 2019 and Prior Total Total Balance, beginning of year $ - $801,142 $337,716 $ 1,138,858 $ 1,318,891 Collections for other governments 1,690,321 - - 1,690,321 1,610,568 Current year's levy 15,723,507 - - 15,723,507 15,288,973 17,413,828 801,142 337,716 18,552,686 18,218,432 Deduct Current year's collections 16,109,870 488,750 180,187 16,778,807 16,777,184 Reduced taxes 287,641 - - 287,641 290,225 Write-offs - - - - 12,165 16,397,511 488,750 180,187 17,066,448 17,079,574 Balance, end of year $1,016,317 $312,392 $157,529 1,486,238 1,138,858 Allowance for uncollectible taxes & unresolved assessments (65,535) (63,129) Allowance for other doubtful accounts (33,861) (30,032) Taxes receivable - interest 130,385 98,284 Billing receivable - water utility (42) (42) HST receivable 120,926 183,191 Due from Federal Government 46,566 - Due from Provincial Government 201,852 738,294 Due from (to) other local governments 98,946 - Landfill receivable 502,062 422,793 Water supply upgrade loans 76,290 45,996 Private road upgrade loans 23,821 - Other 48,963 43,299 Receivables, end of year $ 2,636,611 $ 2,577,512 11 Included in the cash and cash equivalents are restricted amounts. The gas tax grant program funds are restricted to eligible capital projects. The landfill closure funds are restricted by provincial regulations to fund landfill closure costs. The tax sale surplus funds are restricted as they are required to be held as described in note 9. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 7. Employee future benefits - non-vested sick leave benefits The Municipality has provided non-vested sick leave benefits as follows: 2020 2019 Accrued benefit liability Accrued benefit obligation, beginning of the year $ 232,562 $240,538 Current service cost for the year 10,051 9,316 Interest cost for the year 4,975 3,656 Fiscal payments for employees (23,612) (20,948) Accrued benefit liability 223,976 232,562 Unamortized gains (78,309) (84,836) Accrued benefit obligation $ 145,667 $147,726 Employee future benefits, non-vested sick leave benefits Current service costs $ 10,051 $ 9,316 Interest cost for the year 4,975 3,656 $ 15,026 $12,972 The significant actuarial assumptions adopted in measuring the municipality's non-vested sick leave benefits are as follows: Discount rate 3.45% Retirement age at age 65 Rate of compensation increase 3.00% 8. Deferred revenue Funds received with specific eligibility criteria and stipulations that result in a liability, are recorded in deferred revenue until these initial criteria and stipulations have been met. 2020 2019 Prepayment of taxes $ 251,063 $ 232,524 Other deferred revenue 203,676 168,270 Total Deferred Revenue $ 454,739 $400,794 12 The Municipality provides non-vested sick leave benefits to eligible Municipal employees. Municipal employees are provided with 15 days per year (1.25 days per month) and are allowed to accumulate unused sick day credits each year, up to the allowable maximum of 150 days. New employees are granted 3 days of sick leave on their date of hire with respect to the probationary period and any unused days can be carried over when the probationary period is completed. Accumulated credits may be used in future years to the extent that the employee's illness or injury exceeds the current year's allocation of credits. No benefit in respect of accumulated sick leave is payable upon termination, retirement, or death. The benefit costs and liabilities related to the plan are included in the consolidated financial statements. The most recent actuarial valuation was received for fiscal period ending March 31, 2019 and included an estimate for March 31, 2020. Actuarial gains are amortized starting the year following the year in which the gain occurs. Amortization is on a straight line basis over the expected average remaining service life (15 years). Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 9. Tax sale surplus account The tax sale surplus account amounts and the years in which they arose are as follows: 2020 2019 2000 $ 1,024 $ 1,024 2001 2,010 2,010 2003 8,396 8,396 2005 8,267 8,267 2011 20,717 20,717 2012 10,040 10,040 2014 9,944 9,944 2015 1,000 1,000 2016 40,158 40,158 2018 72,071 72,071 2019 15,407 19,707 2020 94,399 - accumulated interest 8,211 3,924 $ 291,644 $197,258 10. Long term debt 2020 2019 Capital asset loans $- $ 32,666 375,000 437,500 350,000 400,000 366,046 429,830 - 59,200 13 Municipal Finance Corporation debenture, bearing interest from 5.16% - 5.480%, repayable in annual instalments of $63,784 plus interest, and a final lump-sum payment of $174,694, maturing in 2024. The original debenture of $1,067,670 was taken out in 2008 for environmental health services use. Municipal Finance Corporation debenture, bearing interest from 4.889% - 4.889%, repayable in annual instalments of $59,200 plus interest, repaid during the year. The original debenture of $592,000 was taken out in 2009 for environmental health and transportation services use. Municipal Finance Corporation debenture, bearing interest from 5.75% - 5.75%, repayable in annual instalments of $32,667 plus interest, repaid during the year. The original debenture of $490,000 was taken out in 2004 for Recreation and Culture use. Municipal Finance Corporation debenture, bearing interest from 4.78% - 4.83%, repayable in annual instalments of $62,500 plus interest, and a final lump-sum payment of $375,000, maturing in 2021. The original debenture of $1,250,000 was taken out in 2006 for environmental health services use. Municipal Finance Corporation debenture, bearing interest from 4.53% - 4.590%, repayable in annual instalments of $50,000 plus interest, and a final lump-sum payment of $300,000, maturing in 2022. The original debenture of $1,000,000 was taken out in 2007 for environmental health services use. The Municipality is required to deposit in a tax sale surplus account the balance of proceeds of properties sold for taxes, after deducting the taxes owing to the Municipality at the time a property was sold. Where a balance remains in the tax sale surplus account twenty years after the sale, the Municipality is required to transfer it to the Capital Reserve Fund. As per provincial accounting rules for municipalities the tax sale surplus is shown as a liability on the consolidated financial statements. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 10. Long term debt (continued)2020 2019 189,000 252,000 181,000 226,250 2,353,335 2,683,668 600,000 1,200,000 332,900 395,600 2,338,294 2,598,104 306,000 340,000 $ 7,391,575 $9,054,818 Principal repayments during the next five years are due as follows: 2021 $ 1,788,877 2022 $ 1,063,877 2023 $ 742,677 2024 $ 790,587 2025 $ 570,643 Interest expensed on long term debt during the year was $250,702 (2019 - $294,719). 14 Municipal Finance Corporation debenture, bearing interest from 1.599% - 2.925%, repayable in annual instalments of $62,700 plus interest to fiscal 2022, then reduced to annual installments of $41,500 plus interest, maturing in 2027. The original debenture of $521,000 was taken out in 2016 for environmental health. Municipal Finance Corporation debenture, bearing interest from 2.992% - 3.480%, repayable in annual instalments of $63,000 plus interest, maturing in 2023. The original debenture of $630,000 was taken out in 2012 for environmental health and general government services use. Municipal Finance Corporation debenture, bearing interest from 2.266% - 2.979%, repayable in annual instalments of $45,250 plus interest , maturing in 2024. The original debenture of $794,500 was taken out in 2013 for environmental health services use. Municipal Finance Corporation debenture, bearing interest from 2.244% - 3.792%, repayable in an installment of 330,333 in 2020 followed by annual instalments of $235,333 plus interest, maturing in 2030. The original debenture of $4,005,000 was taken out in 2015 for environmental health and environmental development services use. Municipal Finance Corporation debenture, bearing interest from 1.626% - 1.833%, repayable in annual instalments of $600,000 plus interest, maturing in 2021. The original debenture of $3,000,000 was taken out in 2016 for environmental health. Municipal Finance Corporation debenture, bearing interest from 2.06% - 3.2995%, repayable in annual instalments of $259,810 plus interest, maturing in 2029. The original debenture of $2,598,104 was taken out in 2019 for environmental health. All long term debt outstanding at year end has been properly authorized by Service Nova Scotia and the Department of Municipal Affairs. Municipal Finance Corporation debenture, bearing interest from 2.49% - 3.389%, repayable in annual instalments of $34,000 plus interest, maturing in 2029. The original debenture of $340,000 was taken out in 2019 for environmental health. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 11. Tangible capital assets Opening Cost Additions Disposals Transfers Ending Cost Buildings - Plants $ 11,326,568 $ 32,857 $ - $ $ 11,359,425 Electronic Data Equipment 1,037,837 155,685 - 97,839 1,291,361 Lagoons 113,516 119,977 - - 233,493 Land 2,818,172 40,416 (2,251) - 2,856,337 Land Improvements 2,162,216 24,603 - - 2,186,819 Landfill 14,630,369 - - - 14,630,369 Machinery and Equipment 3,788,507 101,108 - 122,660 4,012,275 Municipal Buildings 3,274,425 158,505 (5,396) - 3,427,534 Sewer Lines 7,475,180 57,215 - - 7,532,395 Sidewalks 2,713,279 - - - 2,713,279 Small Equipment 326,986 18,824 - - 345,810 Streets, Roads & Curbs 6,009,223 19,065 - - 6,028,288 Vehicles 586,118 49,973 - - 636,091 Wharves 298,656 32,559 - - 331,215 Wind Turbine 5,123,893 - - - 5,123,893 Work in Progress 372,086 122,898 - (220,499) 274,485 $62,057,031 $933,685 $(7,647) $- $62,983,069 Restated (Note 2) Opening Amortization Ending Accumulated During Amortization Accumulated Amortization the Year on Disposals Amortization Buildings - Plants $ 5,779,799 $414,204 $ - $ 6,194,003 Electronic Data Equipment 960,520 99,595 - 1,060,115 Lagoons 45,408 13,751 - 59,159 Land - - - - Land Improvements 1,264,642 112,317 - 1,376,959 Landfill 9,664,171 922,131 - 10,586,302 Machinery and Equipment 2,800,225 153,504 - 2,953,729 Municipal Buildings 1,375,111 83,353 (2,024) 1,456,440 Sewer Lines 5,559,042 149,252 - 5,708,294 Sidewalks 1,547,905 103,664 - 1,651,569 Small Equipment 294,628 16,664 - 311,292 Streets, Roads & Curbs 3,946,780 177,311 - 4,124,091 Vehicles 456,250 55,719 - 511,969 Wharves 122,724 13,249 - 135,973 Wind Turbines 1,301,114 256,393 - 1,557,507 $35,118,319 $2,571,107 $(2,024) $37,687,402 Restated (Note 2) NBV 2020 NBV 2019 Buildings - Plants $ 5,165,422 $ 5,546,769 Electronic Data Equipment 231,246 77,317 Lagoons 174,334 68,108 Land 2,856,337 2,818,172 Land Improvements 809,860 897,574 Landfill 4,044,067 4,966,198 Machinery and Equipment 1,058,546 988,282 Municipal Buildings 1,971,094 1,899,314 Sewer Lines 1,824,101 1,916,138 Sidewalks 1,061,710 1,165,374 Small Equipment 34,518 32,358 Streets, Roads & Curbs 1,904,197 2,062,443 Vehicles 124,122 129,868 Wharves 195,242 175,932 Wind Turbines 3,566,386 3,822,779 Work in Progress 274,485 372,086 $ 25,295,667 $26,938,712 15 Municipality of the District of ChesterNotes to the Consolidated Financial StatementsMarch 31, 202012. Accumulated surplusRestated(Note 2)OperatingCapitalReserves20202019Accumulated surplus, beginning of the year$ (681,004) $ 17,926,676 $ 14,825,302 $32,070,974 $ 28,723,945 Prior period adjustment (Note 2) 2,155,723 - - 2,155,723 2,663,680 Accumulated surplus, beginning of the year restated 1,474,719 17,926,676 14,825,302 34,226,697 31,387,625 Financial activitiesRevenue (fund transfer):Capital grants and donations - (3,216) - (3,216) 307,076 Interest revenue 126,780 785 405,406 532,971 413,530 Gain on disposal of assets - 144,162 - 144,162 - Transfer from Surplus 2,007,648 - - 2,007,648 - Other revenue 18,966,025 - 10,275 18,976,300 16,483,929 Transfers between funds (5,538,946) 577,773 4,961,173 - - 15,561,507 719,504 5,376,854 21,657,865 17,204,535 ExpendituresCapital asset write off - - - - 17,700 Landfill closure costs - - 1,011,540 1,011,540 (1,052,774) Repayment of debt principal 1,663,243 - - 1,663,243 1,437,833 Other expenditures (excluding amortization)12,851,755 - 7 12,851,762 12,466,980 14,514,998 - 1,011,547 15,526,545 12,869,739 Annual surplus before PSA adjustments 1,046,509 719,504 4,365,307 6,131,320 4,334,796 Public sector accounting (PSA) standards adjustments:Eliminate (add) expenses to comply with PSA standards Amortization of capital assets (2,571,107) - - (2,571,107) (2,933,557) Repayment of debt principal - 1,663,243 - 1,663,243 1,437,833 Transfer from Surplus (2,007,648) - - (2,007,648) (4,578,755) 1,663,243 - (2,915,512) (1,495,724) Annual surplus (deficit) (3,532,246) 2,382,747 4,365,307 3,215,808 2,839,072 Accumulated Surplus, end of the year$ (2,057,527) $ 20,309,423 $ 19,190,609 $ 37,442,505 $34,226,697 Financial positionCash $ 1,760,147 $ 85,605 $ 24,606,970 $ 26,452,722 $ 23,039,527 Receivables 2,636,643 - - 2,636,643 2,577,512 Due from (to) own funds (3,913,595) 2,367,676 1,545,919 - - 483,195 2,453,281 26,152,889 29,089,365 25,617,039 Other liabilities (payables and accruals) 2,279,284 31,250 - 2,310,534 3,129,996 Deferred revenue 438,039 16,700 - 454,739 400,794 Landfill closure cost liability - - 6,962,280 6,962,280 5,950,740 Long term debt- 7,391,575 - 7,391,575 9,054,818 2,717,323 7,439,525 6,962,280 17,119,128 18,536,348 Net financial assets (2,234,128) (4,986,244) 19,190,609 11,970,237 7,080,691 Non-financial assets 176,601 25,295,667 - 25,472,268 27,146,006 Accumulated surplus $ (2,057,527) $ 20,309,423 $ 19,190,609 $ 37,442,505 $34,226,697 16 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 13. School Capital Fund 14. Pension plans Defined Contribution Plan 15. Landfill closure costs The estimated time for post closure care is 20 years. 17 On January 31, 1982, the Municipality joined with the other Municipalities and Towns of Lunenburg County to form the South Shore District School Board, now the South Shore Regional Centre for Education. Under the agreement, all school buildings on hand at December 31, 1981, will remain assets of the Municipality, but will be under the control of the Regional Centre until such time as the Regional Centre no longer requires the asset for school purposes. At that time, control will revert to the Municipality. Since the Municipality does not have control over these assets at this time, they are not included in the consolidated financial statements of the Municipality. When control reverts back to the Municipality, they will be added as donated assets. The Municipality currently makes contributions to a pension plan on behalf of employees who have opted to participate in the plan. The pension plan is a defined contribution plan and is administered by ManuLife on behalf of the Municipality. Contributions to this plan are shared by the Municipality and its employees with both contributing 6% of base salary. During the year, the Municipality contributed $190,619 (2019 - $169,922) to the pension plan. Landfill closure costs include estimated expenses for capping the cell sites as well as ongoing environmental monitoring and care. The liability for closure costs is accrued each year based on the total tonnes of garbage delivered to the landfill compared to the estimated tonnes of landfill capacity. The estimated total of landfill closure and post closure costs at the start of the second generation landfill was $9,835,350. Management continued the process of revisiting the landfill closure and post closure costs during the current year. The Municipality uses an engineering report dated August 2019 to update estimated landfill closure and post closure costs. Management will continue to monitor its estimate in future years. Based on information currently available, management estimates that the total landfill closure and post closure costs will be $14,634,620 when site capacity is completely utilized. The total liability recognized to date of $6,962,280 (2019 - $5,950,740) is based on the capacity of the site utilized to date and present value of the costs. The remaining $7,672,340 will be recognized as the landfill capacity is utilized each year. The estimated remaining capacity of the site is 170,700 (2019 - 226,632) tonnes which is currently expected to be filled over the next 19 years. A portion of the total current cost of landfill closure and post-closure care is being transferred into the Special Reserve Fund - Capital Reserve Section in each period the landfill accepts solid waste in the amount equal to the change in the closure liability recognized each year. The total amount for landfill closure costs in reserve is $6,962,280 (2019 - $5,950,740). Estimated closure and post closure costs as well as landfill capacity are examined annually. The calculated liability is revised annually based on the capacity of the landfill utilized during the year and any revisions for estimated closure and post closure costs. Any changes in the estimates used to calculate the accrued landfill closure and post closure costs, including cost, total capacity and discount rate, could result in a material change to the consolidated financial statements. The factors used in the calculation will be reviewed annual to assess their ongoing appropriateness. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 16. Commitments Solid Waste - Sales of Services Solid Waste - Processing of Waste Agreement Waste Collection 17. Remuneration 2020 2019 Councilor Remuneration Mileage Expenses Total Total Danielle Barkhouse $ 22,032 $ 681 $ 7,273 $ 29,986 $ 24,863 Sharon Church 22,032 406 2,919 25,357 24,366 Tina Connors 22,032 2,289 4,108 28,429 26,502 Abdella Assaff 22,032 748 6,187 28,967 23,129 Floyd Shatford 25,179 1,347 4,377 30,903 24,591 Allen Webber 48,113 381 7,091 55,585 46,114 Marshall Hector 22,032 1,326 5,497 28,855 24,490 StaffTammy Wilson - - - - 108,766 Daniel McDougall 151,137 933 32,623 184,693 33,450 $334,589 $8,111 $70,075 $ 412,775 $336,271 Expenses include remuneration benefits (i.e. CPP, group insurance), conferences, meals, accommodations cell phone, and iPad. 18 The Municipality is required by legislation to disclose the remuneration paid to each council member and the chief administrative officer. The Municipality has contractually entered into agreements with the Valley Region Solid Waste Authority for the next 18 years, and the Town of Lunenburg and the Lunenburg Regional Solid Waste Management Committee for the next 8 years, to accept solid waste at its second generation landfill site. Fees charged to Valley Region Solid Waste Authority are a proportionate share of operating costs calculated annually on the basis of tonnes delivered to the site as a percentage of total tonnes accepted from all sources. Fees charged to the Town of Lunenburg and the Lunenburg Regional Solid Waste Management Committee are based on a per tonne charge which is adjusted annually for inflation. The Municipality of the District of Chester collects a host community fee from users based on the number of tonnes delivered to the landfill site. In order to fulfill the terms associated with these arrangements it is estimated the Municipality will not be required to complete construction additional solid waste cells for the duration of the agreements. In August 2016, the Municipality entered into an agreement with Sustane Chester Inc. to provide Sustane with all municipal solid waste (MSW) for 20 years after construction of their facility on land leased from the Municipality. The Municipality will pay Sustane a base fee per tonne for waste delivered to Sustane's facility. Sustane will separate MSW and convert it into marketable by-products with the goal to reduce MSW going to the landfill (up to 90%), create employment in the region, increase recycling rates and reduce the carbon footprint of the landfill site. Sustane will pay the Municipality a fee per tonne for any residual waste that cannot be processed and must go to the landfill. An estimate of the financial impact on future operations cannot be made at this time. In April 2019, the Municipality signed a contract for waste collection services with a 6 year term expiring in March 2026. Total payments remaining over the next six years amount to $4,613,889 plus HST. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 18. Compensation Disclosure Act Name Compensation Cliff Gall 108,074$ Tara Maguire 103,805$ Dan McDougall 151,137$ Pam Myra 109,580$ Malcolm Pitman 107,967$ 19. Segmented Information General government services Protective services Transportation servicers This department is responsible for the development and maintenance of roads, sidewalks and street lighting. Environmental health services Environmental development services Recreational and cultural services 19 The Municipality is a diversified municipal unit that provides a wide range of services to it's citizens. For management reporting purposes the Municipality's operations and activities are organized and reported by fund. Funds were created for the purpose of recording specific activities to attain certain objectives in accordance with special regulations, restrictions or limitations. Municipal services are provided by departments and their activity is reported in these funds. The services provided by these departments are as follows. This department is responsible for the overall financial and local government administration. Its tasks include tax billings and payments, accounts payable and receivables, budgets and financial statements, the Municipal Government Act, administration and maintenance of bylaws and change of address. This department is responsible for planning and development within the municipality. Its tasks include operations of the wind turbine, issuing development permits, developing strategies, economic development and planning reports. This department is responsible for promoting and offering recreation opportunities and activities to the Municipality's residents. The Municipality is not required to disclose compensation pursuant to the Public Sector Compensation Disclose Act, but the Municipality has decided, for the purposes of transparency, to disclose compensation in accordance with the financial reporting provisions in section 3 of the Public Sector Disclosure Act dated December 10, 2010. The disclosure includes employees with compensation in excess of $100,000. "Compensation" is defined as the total amount or value of all cash and non-cash salary, wages, payments, allowances, bonuses, commissions and perquisites, other than a pension, pursuant to may arrangement, including an employment contract. This department is responsible for overseeing police and legal services, animal control, fire protection issuing building permits and fire safety inspections. This department is responsible for the maintenance and operations of waste and sewer services provided to residents and other customers. Its tasks include waste collection, recycling, composting and sewer hook-up. Municipality of the District of ChesterNotes to the Consolidated Financial StatementsMarch 31, 202019. Segmented Information (continued)Recreation(Restated - General Environmental Environmental and see Note 2)Government Protective Transportation Health Development Culture 20202019Services Services Services Services Services Services ConsolidatedConsolidatedRevenueTaxes $ 8,275,766 $ 327,441 $ 266,328 $ 2,899,967 $ 676,464 $ - $ 12,445,966 $ 11,915,316 Grants in lieu of taxes 182,866 2,761 - - - - 185,627 185,683 Sales of Services - 58,871 - 3,108,947 747,931 88,010 4,003,759 2,749,377 Other revenue from own sources 227,382 30,231 11,263 616,073 58,185 - 943,134 859,391 Unconditional transfers fromother governments 6,994 - - 95,430 - - 102,424 108,468 Conditional transfers from other governments 56,110 4,735 - - - 25,000 85,845 32,542 Grants for capital projects 1,209,545 - - (3,216) - - 1,206,329 937,728 Interest 532,971 - - - - - 532,971 413,530 Gain on disposal of capital assets 144,162 - - - - - 144,162 - 10,635,796 424,039 277,591 6,717,201 1,482,580 113,010 19,650,217 17,202,035 ExpendituresSalaries and benefits 1,937,209 283,633 4,064 942,294 597,918 478,588 4,243,706 3,935,279 Goods and services 804,758 2,337,830 976,854 3,539,142 286,705 140,383 8,085,672 6,071,827 Gov't transfers & board contributions 421,300 - - - - - 421,300 416,595 Amortization 123,791 11,552 239,758 1,742,239 344,782 108,985 2,571,107 2,933,557 Interest 1,660 - 3,789 166,300 78,586 368 250,703 294,719 Other 693,045 - - - 22,800 146,076 861,921 695,786 Loss on disposal of capital assets - - - - - - - 15,200 3,981,763 2,633,015 1,224,465 6,389,975 1,330,791 874,400 16,434,409 14,362,963 Annual surplus (deficit) $ 6,654,033 $ (2,208,976) $ (946,874) $ 327,226 $ 151,789 $ (761,390) $ 3,215,808 $2,839,072 Supplementary InformationAdd BackAmortization $ 123,791 $ 11,552 $ 239,758 $ 1,742,239 $ 344,782 $ 108,985 $ 2,571,107 $2,933,557 LessDebenture Principle Payments (16,000) - (67,198) (1,312,046) (235,333) (32,666) (1,663,243) (1,437,833) Transfers to Reserves (4,121,521) - (225,700) (937,431) (2,600) (5,287,252) (3,749,786) Segment Surplus (Deficit) $ 2,640,303 $ (2,197,424) $ (774,314) $ 531,719 $ (676,193) $ (687,671) $ (1,163,580) $ 585,010 20 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2020 20. Contingency The Municipality is required to comply with environmental permit directives for three waste water treatment plants. As a result the Municipality is required to complete upgrades to these waste water treatment system by December 31, 2020. 21. Subsequent event 22. Budgeted figures Budget Approved budget -$ Amortization of tangible capital assets (2,522,088) Transfers to other funds 2,470,289 Transfer from own accumulated surplus (7,648) Principle payments on debt 1,663,243 Annual surplus per consolidated financial statements 1,603,796$ 21 Currently the Municipality has prepared a tender package to complete the necessary upgrades to one of the treatment plants. As the directives are similar for each plant and assuming the estimated cost for the first plant to be upgraded is similar for the other two plants, the costs to be incurred will be approximately $1,200,000. Subsequent to March 31, 2020, the Novel Coronavirus ("COVID-19") pandemic continues to severely impact many local economies around the globe. In many countries, including Canada, businesses are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. The Municipality continues to assess the overall impact, however the spread of COVID-19 has impacted the operations of the Municipality from a cash flow perspective as Council has opted to provide property tax relief options for residents, including an extension on the payment deadlines and temporary elimination of interest. The Municipality has approved a tax financing program that will allow residents negatively impacted by COVID-19 to pay their 2020-21 taxes over a 30 month period. This reduction of cash flow did not significantly impact fiscal 2020 operations or financial results, however is expected to impact fiscal 2021. The Municipality has sufficient assets and reserves to fund operations for fiscal 2021 to sufficiently mitigate financial risk caused by the pandemic. The Municipality has determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended March 31, 2020 have not been adjusted. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Municipality for future periods. Public Sector Accounting Standards ("PSAS") require a comparison of the results for the period with those originally planned on the same basis as that used for the actual results. The fiscal plan presented in the Consolidated statements of operations and changes in net financial assets has been adjusted to be presented on a basis consistent with the actual results. A reconciliation of the approved and reported budget is set out below: Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Unaudited) Year Ended March 31 2020 2019 Budget Actual Actual REVENUE Taxes Residential assessable property $ 10,429,936 $ 10,438,707 $ 10,144,235 Commercial based taxable assessments 1,441,522 1,442,219 1,407,429 Resource Taxable assessments 312,028 308,957 305,300 Non-profit acreage 4,360 4,360 4,360 Forest property tax (less than 50,000 acres) 26,621 26,605 26,930 Forest property tax (50,000 acres or more) 8,923 8,923 8,588 351,932 348,845 345,178 Area rates Protective services 298,689 327,441 321,639 Transportation services 259,244 266,328 262,379 Environmental Health services 2,893,412 2,899,967 2,808,113 3,451,345 3,493,736 3,392,131 Business property Based on revenue (Aliant) 51,751 49,043 54,633 NS Power HST rebate 67,783 83,335 43,023 119,534 132,378 97,656 Deed Transfer tax 981,082 1,136,516 1,000,830 Wind Farm Developer tax 663,102 676,464 669,733 Transfers and collections for other governments Collection - other governments 1,654,590 1,690,321 1,610,568 Transfers to local fire commissions (1,654,590) (1,698,786) (1,621,221) - (8,465) (10,653) 17,438,453 17,660,400 17,046,539 Education mandatory contribution (Note 4) (4,958,834) (4,958,834) (4,873,192) Correction services (Note 4) (235,600) (235,600) (236,665) Regional Housing Authority (Note 3) (20,000) (20,000) (21,366) (5,214,434) (5,214,434) (5,131,223) $ 12,224,019 $ 12,445,966 $ 11,915,316 See accompanying notes and schedules to the consolidated financial statements.22 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Unaudited) Year Ended March 31 2020 2019 Budget Actual Actual Grants in lieu of taxes Federal government $ 50,047 $ 55,240 $ 55,895 Provincial government Real property 58,003 60,349 58,841 Crown timberland 32,381 32,594 32,381 Fire protection 5,014 2,761 4,951 Conservation 7,000 12,596 12,520 152,445 163,540 164,588 Provincial government agencies NS Power Incorporated 22,087 22,087 21,095 $ 174,532 $ 185,627 $ 185,683 Sales of services Animal control fees - other local govt 33,000$ 33,358$ 33,358$ Waste Collection fees - other local governments 3,569,810 3,510,360 3,895,262 Waste Collection fees - surplus repayment - (401,413) (2,063,352) Planning services - other local governments 48,661 49,064 48,275 Building/fire inspection services - other local gov't 68,090 22,895 22,162 Recreation and cultural services 79,150 62,802 67,448 FHCS 27,500 25,208 28,019 REMO - other local governments 2,503 2,618 2,534 Wind Energy 770,000 698,867 715,671 $ 4,598,714 $ 4,003,759 $ 2,749,377 Other revenue from own sources Administrative services $ 201,049 $ 227,382 $ 202,550 Transportation services 10,614 11,263 10,510 Building inspection services 23,000 27,221 30,074 Animal control services 1,925 3,010 2,784 Sewer hookup services 500 7,156 8,244 Solid waste & disposal services 442,808 608,917 555,334 Planning services 17,920 20,173 20,374 Industrial park services 25,000 38,012 29,521 $ 722,816 $ 943,134 $ 859,391 See accompanying notes and schedules to the consolidated financial statements. 23 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Unaudited) Year Ended March 31 2020 2019 Budget Actual Actual Unconditional transfers from Federal and Provincial governments and agencies Provincial government Service Nova Scotia Assessment Act - farm acreage $ 6,994 $ 6,994 $ 6,851 Recycling projects 132,347 95,430 101,617 $ 139,341 $ 102,424 $ 108,468 Conditional transfers from Federal and Provincial governments and agencies Federal government Employment grants $ 3,000 $ 2,544 $ 3,080 Disaster relief - 46,566 - Provincial government Emergency measures 4,500 4,735 4,762 Recreation 28,000 25,000 20,000 Other agencies 7,500 7,000 4,700 $ 43,000 $ 85,845 $ 32,542 Grants for Capital Projects Infrastructure grant $ - $- $ 292,046 Gas tax grant 1,232,300 1,209,545 616,150 PCAP (over accrual) grant - (3,216) - SNSMR grant - - 16,701 Local agencies grant - - 12,831 $ 1,232,300 $ 1,206,329 $ 937,728 See accompanying notes and schedules to the consolidated financial statements. 24 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Restated - (Unaudited)see Note 2) Year Ended March 31 2020 2020 2019 Budget Actual Actual EXPENDITURES General government services Legislative Council/committee remuneration $ 193,374 $ 188,493 $ 165,916 Administrative expenses 108,341 85,545 85,983 Grants to organizations 506,001 405,403 280,769 807,716 679,441 532,668 CAO/Clerk administrative Administration salaries 502,360 502,016 445,711 Administrative expenses 284,263 147,161 122,085 Town crier 500 21 - Surveys/appraisals 2,000 - - Newsletter/promotions 10,000 - 10,126 Joint occupational health and safety 79,103 71,789 - Health & wellness 7,000 4,352 76,650 885,226 725,339 654,572 Finance/property tax administrative Administration salaries 380,087 381,587 357,968 Administrative expenses 227,330 194,480 184,261 Auditor services 40,000 40,312 45,261 Property tax administration 340,781 333,948 338,366 988,198 950,327 925,856 Information services administrative Administration salaries 239,867 237,937 230,433 Administrative expenses 250,821 201,669 185,399 Debenture interest 2,237 1,660 1,980 492,925 441,266 417,812 Municipal property services Salaries 108,811 147,648 122,979 Administrative expenses 57,033 53,825 55,981 Property services 212,774 151,080 170,325 Wharves 8,000 8,426 3,825 Community Development 18,000 11,338 10,622 404,618 372,317 363,732 Public works general Salaries 155,336 147,441 149,460 Administrative expenses 72,160 76,653 51,569 Special Projects 49,172 43,888 61,145 276,668 267,982 262,174 Other general government services Assessment recovery costs 352,585 352,585 347,880 Regional library 69,015 68,715 68,715 Amortization 127,635 123,791 184,463 549,235 545,091 601,058 $ 4,404,586 $ 3,981,763 $ 3,757,872 See accompanying notes and schedules to the consolidated financial statements. 25 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Restated - (Unaudited)see Note 2) Year Ended March 31 2020 2020 2019 Budget Actual Actual Protective services Police services $ 1,847,184 $ 1,841,096 $ 1,822,882 Legal prosecution services 5,000 8,463 7,725 By-law enforcement 66,468 34,110 31,735 Animal control 70,400 63,645 63,580 Emergency measures 53,846 50,053 28,977 2,042,898 1,997,367 1,954,899 Fire services Fire coordinator/advisory 179,448 68,202 62,430 Fire protection agreement 257,035 298,883 288,669 Fire rescue boat 16,623 9,342 13,975 453,106 376,427 365,074 Building/fire inspections Salaries 219,961 186,357 168,061 Administrative expenses 159,113 61,312 63,950 Amortization - 11,552 - 379,074 259,221 232,011 $ 2,875,078 $ 2,633,015 $ 2,551,984 Transportation services Road transport Administration $ 19,612 $ 7,980 $ 7,092 Road and sidewalk maintenance 496,266 865,688 717,018 Street lighting 109,611 107,251 106,259 Debenture interest 4,630 3,789 4,828 Amortization 228,850 239,757 239,758 $ 858,969 $ 1,224,465 $ 1,074,955 Environmental health services Sewage collection and disposal $ 626,772 $ 608,738 $ 571,204 Waste collection and disposal 4,366,274 3,816,572 1,924,337 Recycling project 57,385 56,126 49,750 Debenture interest 178,119 166,299 184,124 Amortization 1,779,433 1,742,240 2,100,573 $ 7,007,983 $ 6,389,975 $ 4,829,988 See accompanying notes and schedules to the consolidated financial statements. 26 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Restated - (Unaudited)see Note 2) Year Ended March 31 2020 2020 2019 Budget Actual Actual Environmental development services Planning and zoning $ 579,512 $ 503,645 $ 471,805 Economic Development 321,803 204,900 182,377 Tourism development 72,370 59,208 58,030 Eco Park 22,376 15,701 116,951 Regional economic network 10,000 (12) 20,201 Wind Turbine 129,324 123,981 74,872 Debenture interest 80,166 78,586 81,645 Amortization 291,445 344,782 301,009 $ 1,506,996 $ 1,330,791 $ 1,306,890 Recreational and cultural services Administration $ 646,316 $ 598,582 $ 584,543 Program expenses 39,700 37,327 33,289 Church Memorial Park 85,000 85,000 50,000 Heritage properties 500 - - Debenture interest 939 368 1,683 Forest Heights Community School 36,509 27,007 31,625 New Ross Community School 5,625 4,779 - After school programs 18,000 12,352 17,179 Amortization 94,725 108,985 107,755 $ 927,314 $ 874,400 $ 826,074 See accompanying notes and schedules to the consolidated financial statements. 27