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HomeMy Public PortalAbout2021-03-31_Report_Consolidated Financial Statements Consolidated Financial Statements Municipality of the District of Chester March 31, 2021 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, 2021, 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, 2021, 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. 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. 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. Audit | Tax | Advisory © Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 3 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. Bridgewater, Canada Chartered Professional Accountants June 22, 2021 Municipality of the District of Chester Consolidated Statement of Operations Year Ended March 31 2021 2021 2020 Page Budget Actual Actual Revenue Taxes 22 $ 12,560,711 $ 13,407,672 $ 12,445,966 Grants in lieu of taxes 23 175,010 176,603 185,627 Sales of services 23 4,642,576 4,052,786 4,003,759 Other revenue from own sources 23 800,998 1,031,129 945,454 Transfers from Federal and Provincial governments and agencies Unconditional 24 99,785 109,433 102,424 Conditional 24 120,500 163,456 85,845 Grants for capital projects 24 616,150 682,510 1,206,329 Interest 50,004 358,605 532,971 Gain on disposal of assets - - 144,162 $ 19,065,734 $ 19,982,194 $ 19,652,537 Expenditures General government services 25 $ 4,780,926 $ 4,312,018 $ 3,984,083 Protective services 26 2,923,846 2,719,158 2,633,015 Transportation services 26 880,287 1,996,447 1,224,465 Environmental health services 26 6,664,152 6,209,995 6,389,975 Environmental development services 27 1,615,964 1,299,478 1,330,791 Recreational and cultural services 27 855,979 748,800 874,400 Loss on disposal of assets - 104,956 - $ 17,721,154 $ 17,390,852 $ 16,436,729 Annual surplus $ 1,344,580 $ 2,591,342 $ 3,215,808 Accumulated surplus, beginning of the year 37,442,505 34,226,697 Accumulated surplus, end of the year $ 40,033,847 $37,442,505 ‐                              See accompanying notes and schedules to the consolidated financial statements. 4 Municipality of the District of Chester Consolidated Statement of Change in Net Financial Assets Year Ended March 31 2021 2021 2020 Budget Actual Actual Annual surplus $ 1,344,580 $ 2,591,342 $3,215,808 Acquisition of tangible capital assets - (1,554,447) (933,685) Write off of tangible capital assets - 104,956 5,624 Amortization of tangible capital assets 2,546,518 2,623,802 2,571,107 3,891,098 3,765,653 4,858,854 Decrease (increase) in other non-financial assets - - 34,154 Decrease in prepaid expense - (17,605) (3,494) Increase in net financial assets 3,891,098 3,748,048 4,889,514 Net financial assets Beginning of year 11,970,205 11,970,205 7,080,691 End of year $ 15,861,303 $ 15,718,253 $11,970,205 See accompanying notes and schedules to the consolidated financial statements. 5 Municipality of the District of Chester Consolidated Statement of Cash Flows Year Ended March 31 2021 2020 Cash and cash equivalents provided by (used): Operating activities Annual surplus $ 2,591,342 $3,215,808 Amortization of tangible capital assets 2,623,802 2,571,107 Write off of tangible capital assets 104,956 5,623 5,320,100 5,792,538 Changes in non-cash working capital (Increase) in receivables (465,307) (59,099) (Increase) in prepaid expenses (17,605) (3,493) Decrease in other non-financial assets - 34,154 Increase (decrease) in payables 1,606,427 (905,262) (Decrease) in employee future benefits (8,871) (8,586) Increase in deferred revenue 339,893 53,945 (Decrease) increase in tax sale surplus (12,545) 94,386 Increase in landfill closure costs liability 1,066,520 1,011,540 7,828,612 6,010,123 Capital transactions Acquisition of tangible capital assets (1,554,447) (933,685) (1,554,447) (933,685) Financing activities Repayment of long term debt (1,788,877) (1,663,243) (1,788,877) (1,663,243) Increase in cash and cash equivalents 4,485,288 3,413,195 Cash and cash equivalents Beginning of year 26,452,722 23,039,527 End of year $ 30,938,010 $26,452,722 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, 2021 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, 2021 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, 2021 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 The budget figures contained in these consolidated financial statements were approved by council on March 19, 2020 in its original fiscal plan. Note 21 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. 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. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2021 2. 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 2021, the Municipality paid $68,035 (2020 - $68,715) to the South Shore Regional Library Board 3. Contributions to provincial government departments & agencies Corrections contribution Education contribution Assessment services contribution 10 The required contribution for assessment services is calculated first using an amount, set by the PVSC, to be recovered from all municipal units for 2021 $17,872,335 (2020 - $17,695,392). 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 2021 the Municipality paid $354,714 (2020 - $352,585) 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 2021, the Municipality incurred costs payable of $30,614 (2020 - $20,000) to the Lunenburg County Regional Housing Authority as its share of operations. 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 2021, the Municipality paid $234,295 (2020 - $235,600) to the province for correction services. 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 2021 the education tax rate of $.3048 (2020 - $.3048) per $100 of uniform assessment times the uniform assessment of $1,671,069,183 (2020 - $1,626,914,001) for a total amount paid of $5,093,419 (2020 - $4,958,834). Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2021 4. 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 2021 2020 Cash $ 3,407,247 $ 86,034 $ 12,705,830 $ 16,199,111 $ 13,955,722 Short term investments (GICs) - - 14,738,899 14,738,899 12,497,000 $3,407,247 $86,034 $27,444,729 $30,938,010 $26,452,722 Operating Capital Reserves 2021 2020 Gas tax grant program $ - $ - $ 3,239,703 $ 3,239,703 $3,252,954 Tax sale surplus account 286,433 - - 286,433 301,020 Landfill closure costs - - 8,219,100 8,219,100 8,673,843 Unrestricted cash 3,120,814 86,034 15,985,926 19,192,774 14,224,905 $3,407,247 $86,034 $27,444,729 $30,938,010 $26,452,722 5. Receivables 2021 2020 Taxes receivable - rate roll:Current 2019 Year 2020 and Prior Total Total Balance, beginning of year $- $ 1,016,317 $ 469,921 $ 1,486,238 $ 1,138,858 Collections for other governments 1,727,757 - - 1,727,757 1,690,321 Current year's levy 16,059,632 - - 16,059,632 15,723,507 17,787,389 1,016,317 469,921 19,273,627 18,552,686 Deduct Current year's collections 16,351,923 427,181 327,260 17,106,364 16,778,807 Reduced taxes 330,431 - - 330,431 287,641 Write-offs - - - - - 16,682,354 427,181 327,260 17,436,795 17,066,448 Balance, end of year $1,105,035 $589,136 $142,661 1,836,832 1,486,238 Allowance for uncollectible taxes & unresolved assessments (73,607) (65,535) Allowance for other doubtful accounts (80,880) (33,861) Taxes receivable - interest 184,236 130,385 Billing receivable - water utility (42) (42) HST receivable 96,517 120,926 Due from Federal Government 46,566 46,566 Due from Provincial Government 349,615 201,852 Due from (to) other local governments 37,929 98,946 Landfill receivable 510,608 502,062 Water supply upgrade loans 109,644 76,290 Private road upgrade loans 23,848 23,821 Other 60,652 48,963 Receivables, end of year $ 3,101,918 $2,636,611 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, 2021 6. Employee future benefits - non-vested sick leave benefits The Municipality has provided non-vested sick leave benefits as follows: 2021 2020 Accrued benefit liability Accrued benefit obligation, beginning of the year $ 223,976 $232,562 Current service cost for the year 10,548 10,051 Interest cost for the year 4,901 4,975 Fiscal payments for employees (24,320) (23,612) Accrued benefit liability 215,105 223,976 Unamortized gains (10,755) (78,309) Accrued benefit obligation $ 204,350 $145,667 Employee future benefits, non-vested sick leave benefits Current service costs $ 10,548 $ 10,051 Interest cost for the year 4,901 4,975 $ 15,449 $15,026 The significant actuarial assumptions adopted in measuring the municipality's non-vested sick leave benefits are as follows: Discount rate 1.95% Retirement age at age 65 Rate of compensation increase 3.00% 7. 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. 2021 2020 Prepayment of taxes $ 269,300 $ 251,063 Other deferred revenue 525,332 203,676 Total Deferred Revenue $ 794,632 $454,739 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. 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, 2021 8. Tax sale surplus account The tax sale surplus account amounts and the years in which they arose are as follows: 2021 2020 2000 $- $ 1,024 2001 - 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 15,407 2020 83,570 94,399 accumulated interest 9,529 8,211 $ 279,099 $291,644 9. Long term debt 2021 2020 Capital asset loans $- 375,000 300,000 350,000 302,262 366,046 13 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. Municipal Finance Corporation debenture, bearing interest from 5.255% - 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 Municipal Finance Corporation debenture, bearing interest from 4.83% - 4.83%, repayable in Municipal Finance Corporation debenture, bearing interest from 4.57% - 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. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2021 9. Long term debt (continued)2021 2020 126,000 189,000 135,750 181,000 2,118,002 2,353,335 - 600,000 270,200 332,900 2,078,484 2,338,294 272,000 306,000 $ 5,602,698 $7,391,575 Principal repayments during the next five years are due as follows: 2022 $ 1,063,877 2023 $ 742,677 2024 $ 790,587 2025 $ 570,643 2026 $ 570,643 Interest expensed on long term debt during the year was $207,081 (2020 - $250,702). 14 Municipal Finance Corporation debenture, bearing interest from 1.833% - 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 2.367% - 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 2.677% - 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. Municipal Finance Corporation debenture, bearing interest from 1.809% - 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 Municipal Finance Corporation debenture, bearing interest from 3.172% - 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 2.454% - 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 2.516% - 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 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2021 10. Tangible capital assets Opening Cost Additions Disposals Transfers Ending Cost Buildings - Plants $ 11,359,425 $ 526,515 $ - $ $ 11,885,940 Electronic Data Equipment 1,291,361 114,506 - - 1,405,867 Lagoons 233,493 - - - 233,493 Land 2,856,337 - - - 2,856,337 Land Improvements 2,186,819 18,154 - - 2,204,973 Landfill 14,630,369 - - - 14,630,369 Machinery and Equipment 4,012,275 47,058 - - 4,059,333 Municipal Buildings 3,427,534 145,437 - - 3,572,971 Sewer Lines 7,532,395 229,921 - - 7,762,316 Sidewalks 2,713,279 12,786 - - 2,726,065 Small Equipment 345,810 - - - 345,810 Streets, Roads & Curbs 6,028,288 1,101 - - 6,029,389 Vehicles 636,091 58,854 - - 694,945 Wharves 331,215 - - - 331,215 Wind Turbine 5,123,893 - - - 5,123,893 Work in Progress 274,485 400,115 (104,956) - 569,644 $62,983,069 $1,554,447 $(104,956) $- $64,432,560 Opening Amortization Ending Accumulated During Amortization Accumulated Amortization the Year on Disposals Amortization Buildings - Plants $ 6,194,003 $ 440,529 $ - $ 6,634,532 Electronic Data Equipment 1,060,115 124,969 - 1,185,084 Lagoons 59,159 13,751 - 72,910 Land - - - - Land Improvements 1,376,959 108,633 - 1,485,592 Landfill 10,586,302 923,545 - 11,509,847 Machinery and Equipment 2,953,729 155,238 - 3,108,967 Municipal Buildings 1,456,440 79,154 - 1,535,594 Sewer Lines 5,708,294 153,850 - 5,862,144 Sidewalks 1,651,569 104,303 - 1,755,872 Small Equipment 311,292 12,260 - 323,552 Streets, Roads & Curbs 4,124,091 177,356 - 4,301,447 Vehicles 511,969 60,572 - 572,541 Wharves 135,973 13,249 - 149,222 Wind Turbines 1,557,507 256,393 - 1,813,900 $37,687,402 $2,623,802 $- $40,311,204 NBV 2021 NBV 2020 Buildings - Plants $ 5,251,408 $ 5,165,422 Electronic Data Equipment 220,783 231,246 Lagoons 160,583 174,334 Land 2,856,337 2,856,337 Land Improvements 719,381 809,860 Landfill 3,120,522 4,044,067 Machinery and Equipment 950,366 1,058,546 Municipal Buildings 2,037,377 1,971,094 Sewer Lines 1,900,172 1,824,101 Sidewalks 970,193 1,061,710 Small Equipment 22,258 34,518 Streets, Roads & Curbs 1,727,942 1,904,197 Vehicles 122,404 124,122 Wharves 181,993 195,242 Wind Turbines 3,309,993 3,566,386 Work in Progress 569,644 274,485 $ 24,121,356 $25,295,667 15 Municipality of the District of ChesterNotes to the Consolidated Financial StatementsMarch 31, 202111. Accumulated surplusOperatingCapitalReserves20212020Accumulated surplus, beginning of the year(2,057,528) $ 20,309,424 $ 19,190,609 $37,442,505 34,226,697 Financial activitiesRevenue (fund transfer):Capital grants and donations- - - (3,216) Interest revenue30,201 429 327,975 358,605 532,971 Gain on disposal of assets- - - - 144,162 Transfer from Surplus26,861 - - 26,861 2,007,648 Tax sale surplus transferred to reserves- - 3,035 3,035 - Other revenue19,610,858 - 9,696 19,620,554 18,976,300 Transfers between funds(2,424,147) 597,844 1,826,303 - - 17,243,773 598,273 2,167,009 20,009,055 21,657,865 ExpendituresCapital asset write off- 104,956 - 104,956 - Landfill closure costs- - 1,066,520 1,066,520 1,011,540 Repayment of debt principal1,788,877 - - 1,788,877 1,663,243 Other expenditures (excluding amortization)13,595,549 - 25 13,595,574 12,851,762 15,384,426 104,956 1,066,545 16,555,927 15,526,545 Annual surplus before PSA adjustments1,859,347 493,317 1,100,464 3,453,128 6,131,320 Public sector accounting (PSA) standards adjustments:Eliminate (add) expenses to comply with PSA standards Amortization of capital assets (2,623,802) - - (2,623,802) (2,571,107) Repayment of debt principal- 1,788,877 - 1,788,877 1,663,243 Transfer from Surplus(26,861) - - (26,861) (2,007,648) (2,650,663) 1,788,877 - (861,786) (2,915,512) Annual surplus (deficit)(791,316) 2,282,194 1,100,464 2,591,342 3,215,808 Accumulated Surplus, end of the year$ (2,848,844) $ 22,591,618 $ 20,291,073 $ 40,033,847 $37,442,505 Financial positionCash $ 3,407,247 $ 86,034 $ 27,444,729 $ 30,938,010 $ 26,452,722 Receivables 3,101,918 - - 3,101,918 2,636,643 Due from (to) own funds(5,040,378) 4,165,234 875,144 - - 1,468,787 4,251,268 28,319,873 34,039,928 29,089,365 Other liabilities (payables and accruals)3,864,295 31,250 - 3,895,545 2,310,534 Deferred revenue647,574 147,058 - 794,632 454,739 Landfill closure cost liability- - 8,028,800 8,028,800 6,962,280 Long term debt- 5,602,698 - 5,602,698 7,391,575 4,511,869 5,781,006 8,028,800 18,321,675 17,119,128 Net financial assets (3,043,082) (1,529,738) 20,291,073 15,718,253 11,970,237 Non-financial assets194,238 24,121,356 - 24,315,594 25,472,268 Accumulated surplus$ (2,848,844) $ 22,591,618 $ 20,291,073 $ 40,033,847 $37,442,505 16 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2021 12. School Capital Fund 13. Pension plans Defined Contribution Plan 14. Landfill closure costs The estimated time for post closure care is 20 years. 17 The estimated remaining capacity of the site is 118,440 (2020 - 170,700) tonnes which is currently expected to be filled over the next 3 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 $8,028,800 (2020 - $6,962,280). 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. 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 $197,827 (2020 - $190,619) 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 $8,028,800 (2020 - $6,962,280) is based on the capacity of the site utilized to date and present value of the costs. The remaining $6,605,820 will be recognized as the landfill capacity is utilized each year. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2021 15. Commitments Solid Waste - Sales of Services Waste Collection Capital Commitments 16. Remuneration Councilor Remuneration Mileage Expenses Total Total Danielle Barkhouse $22,384 $- $ 1,318 $23,702 $ 29,986 Sharon Church 22,384 232 1,438 24,054 25,357 Tina Connors 22,384 2,287 1,384 26,055 28,429 Abdella Assaff 22,384 396 1,431 24,211 28,967 Floyd Shatford 25,581 611 268 26,460 30,903 Allen Webber 48,883 - 2,705 51,588 55,585 Marshall Hector 13,058 1,239 161 14,458 28,855 Andre Veinotte 9,327 - 580 9,907 Staff Daniel McDougall 148,714 372 23,463 172,549 184,693 $335,099 $5,137 $32,748 $ 372,984 $412,775 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. A new dozer in the amount of $468,203 + HST was approved by Council on January 28, 2021 motion 2021-039. Additionally, a wastewater needs assessment was approved by Council in the amount of $235,870 + HST on February 25, 2021 motion 2021-097. The Municipality has contractually entered into agreements with the Valley Region Solid Waste Authority for the next 15 years, and the Town of Lunenburg and the Lunenburg Regional Solid Waste Management Committee for the next 5 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 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 five years amount to $3,887,905 plus HST. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2021 17. Compensation Disclosure Act Name Compensation Cliff Gall 109,515$ Tara Maguire 109,528$ Dan McDougall 148,714$ Pam Myra 114,683$ Malcolm Pitman 111,297$ Christa Rafuse 100,631$ 18. 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 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 $100,000. "Compensation" is defined as the total amount or value of all cash and non-cash salary, wages, payments, allowances, bonuses, commissions and perquisites, other than a pension, pursuant to may arrangement, including an employment contract. This department is responsible for overseeing police and legal services, animal control, fire protection issuing building permits and fire safety inspections. This department is responsible for the maintenance and operations of waste and sewer services provided to residents and other customers. Its tasks include waste collection, recycling, composting and sewer hook-up. The Municipality is a diversified municipal unit that provides a wide range of services to it's citizens. For management reporting purposes the Municipality's operations and activities are organized and reported by fund. Funds were created for the purpose of recording specific activities to attain certain objectives in accordance with special regulations, restrictions or limitations. Municipal services are provided by departments and their activity is reported in these funds. The services provided by these departments are as follows. This department is responsible for the overall financial and local government administration. Its tasks include tax billings and payments, accounts payable and receivables, budgets and financial statements, the Municipal Government Act, administration and maintenance of bylaws and change of address. 19 Municipality of the District of ChesterNotes to the Consolidated Financial StatementsMarch 31, 202118. Segmented Information (continued)RecreationGeneralEnvironmental Environmentaland Government Protective TransportationHealth Development Culture20212020Services Services Services Services Services Services ConsolidatedConsolidatedRevenueTaxes$ 9,157,145 $ 336,457 $ 269,272 $ 2,961,602 $ 683,196 $ - $ 13,407,672 $ 12,445,966 Grants in lieu of taxes173,767 2,836 - - - - 176,603 185,627 Sales of Services- 85,576 - 3,049,283 867,061 50,866 4,052,786 4,003,759 Other revenue from own sources237,281 40,791 12,275 685,478 55,304 - 1,031,129 943,134 Unconditional transfers fromother governments7,119 - - 102,314 - - 109,433 102,424 Conditional transfers from other governments65,324 4,718 - - 58,750 34,664 163,456 85,845 Grants for capital projects599,418 - - 83,092 - - 682,510 1,206,329 Interest358,605 - - - - - 358,605 532,971 Gain on disposal of capital assets- - - - - - - 144,162 10,598,659 470,378 281,547 6,881,769 1,664,311 85,530 19,982,194 19,650,217 ExpendituresSalaries and benefits2,094,418 278,196 2,895 897,334 582,563 417,188 4,272,594 4,243,706 Goods and services836,646 2,429,410 1,750,430 3,410,822 287,257 120,730 8,835,295 8,085,672 Gov't transfers & board contributions 422,749 - - - - - 422,749 421,300 Amortization156,798 11,552 240,397 1,770,924 335,752 108,379 2,623,802 2,571,107 Interest854 - 2,725 130,915 72,588 - 207,082 250,703 Other800,553 - -- 21,318 102,503 924,374 861,921 Loss on disposal of capital assets104,956 - -- - - 104,956 - 4,416,974 2,719,158 1,996,447 6,209,995 1,299,478 748,800 17,390,852 16,434,409 Annual surplus (deficit)$ 6,181,685 $ (2,248,780) $ (1,714,900) $ 671,774 $ 364,833 $ (663,270) $ 2,591,342 $3,215,808 Supplementary InformationAdd BackAmortization$ 156,798 $ 11,552 $ 240,397 $ 1,770,924 $ 335,752 $ 108,379 $ 2,623,802 $2,571,107 LessDebenture Principle Payments(16,000) - (31,198) (1,506,346) (235,333) - (1,788,877) (1,663,243) Transfers to Reserves(823,723) - (35,000) (794,884) (1,083,035) - (2,736,642) (5,287,252) Segment Surplus (Deficit)$ 5,498,760 $ (2,237,228) $ (1,540,701) $ 141,468 $ (617,783) $ (554,891) $ 689,625 $ (1,163,580) 20 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2021 19. Contingency The Municipality is required to comply with environmental permit directives for two waste water treatment plants. As a result the Municipality was required to complete upgrades to these waste water treatment system by March 31, 2022. 20. Covid-19 Impact 21. Budgeted figures Budget Approved budget - annual surplus (deficit)-$ Amortization of tangible capital assets (2,546,518) Transfers to other funds 2,396,194 Transfer from own accumulated surplus (57,517) Principle payments on debt 1,552,421 Annual surplus per consolidated financial statements 1,344,580$ 22. Comparative figures 21 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: Additionally, as at March 31, 2021 the Municipality received a notice of intended action regarding a potential legal claim. As at this time the settlement amount or outcome of the claim is not determinable. Comparative figures have been adjusted to conform to changes in the current year presentation. Since December 2019, the spread of COVID-19 has severely impacted many local economies around the globe. On March 11, 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. This has resulted in governments worldwide, including the Canadian government, enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods, and social distancing, have caused material disruption to businesses globally and in Canada, resulting in an economic slowdown. Global stock markets have also experienced great volatility and a significant weakening as a result. Governments and central banks have responded with monetary fiscal interventions to stabilize the economic conditions. The Municipality is conducting a wastewater needs assessment study. From this will come options for the two remaining waste water treatment plants. Until options are identified, the costs to be incurred are not determinable at this time. The Municipality's finances were not significantly impacted in fiscal 2021 by Covid-19. However, there were extra costs incurred for cleaning, personal protective equipment and remote computer access to enable work from home. The Municipality did receive COVID-19 related funding from the Province to offset these costs. Operations were impacted as recreation program were disrupted. The reduction in recreation programming revenue was offset by a reduction in recreation programming expenses. The Municipality also offered relief grants to non-profit organizations in the Municipality that owned properties used to provide their services. The Municipality also has a higher taxes receivable balance at year end as the annual tax sale process for accounts in arrears was delayed for one year due to gathering limits. Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Unaudited) Year Ended March 31 2021 2020 Budget Actual Actual REVENUE Taxes Residential assessable property $ 10,697,513 $ 10,683,570 $ 10,438,707 Commercial based taxable assessments 1,457,252 1,450,734 1,442,219 Resource Taxable assessments 320,456 318,198 308,957 Non-profit acreage 4,360 4,360 4,360 Forest property tax (less than 50,000 acres)26,621 26,592 26,605 Forest property tax (50,000 acres or more)8,923 8,847 8,923 360,360 357,997 348,845 Area rates Protective services 336,445 336,457 327,441 Transportation services 272,524 269,272 266,328 Environmental Health services 2,954,612 2,961,602 2,899,967 3,563,581 3,567,331 3,493,736 Business property Based on revenue (Aliant)51,751 47,235 49,043 NS Power HST rebate 67,783 54,271 83,335 119,534 101,506 132,378 Deed Transfer tax 1,047,083 1,930,379 1,136,516 Wind Farm Developer tax 663,102 683,196 676,464 Transfers and collections for other governments Collection - other governments 1,731,141 1,727,757 1,690,321 Transfers to local fire commissions (1,731,141) (1,736,470) (1,698,786) -(8,713) (8,465) 17,908,425 18,766,000 17,660,400 Education mandatory contribution (Note 3)(5,093,419) (5,093,419) (4,958,834) Correction services (Note 3)(234,295) (234,295) (235,600) Regional Housing Authority (Note 2)(20,000) (30,614) (20,000) (5,347,714) (5,358,328) (5,214,434) $12,560,711 $ 13,407,672 $ 12,445,966 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 2021 2020 Budget Actual Actual Grants in lieu of taxes Federal government $ 50,047 $ 48,403 $ 55,240 Provincial government Real property 58,003 57,889 60,349 Crown timberland 32,381 32,594 32,594 Fire protection 5,014 2,836 2,761 Conservation 7,000 12,316 12,596 152,445 154,038 163,540 Provincial government agencies NS Power Incorporated 22,565 22,565 22,087 $ 175,010 $ 176,603 $ 185,627 Sales of services Animal control fees - other local govt 33,000 34,369 33,358$ Waste Collection fees - other local governments 3,632,461 3,572,724 3,510,360 Waste Collection fees - surplus repayment - (523,441) (401,413) Planning services - other local governments 48,662 49,849 49,064 Building/fire inspection services - other local gov't 59,100 48,547 22,895 Recreation and cultural services 75,750 47,206 62,802 FHCS 31,100 3,660 25,208 REMO - other local governments 2,503 2,660 2,618 Wind Energy 760,000 817,212 698,867 $4,642,576 $ 4,052,786 $ 4,003,759 Other revenue from own sources Administrative services $ 201,060 $ 234,246 $ 229,702 Tax sale surplus transferred to reserves - 3,035 Transportation services 10,614 12,275 11,263 Building inspection services 23,000 38,908 27,221 Animal control services 1,925 1,883 3,010 Sewer hookup services 500 2,614 7,156 Solid waste & disposal services 518,979 682,864 608,917 Planning services 19,920 16,969 20,173 Industrial park services 25,000 38,335 38,012 $ 800,998 $ 1,031,129 $ 945,454 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 2021 2020 Budget Actual Actual Unconditional transfers from Federal and Provincial governments and agencies Provincial government Service Nova Scotia Assessment Act - farm acreage $ 6,975 $ 7,119 $ 6,994 Recycling projects 92,810 102,314 95,430 $ 99,785 $ 109,433 $ 102,424 Conditional transfers from Federal and Provincial governments and agencies Federal government Employment grants $ 3,000 $- $2,544 Disaster relief - - 46,566 Provincial government Emergency measures 4,500 4,718 4,735 Economic development 75,000 58,750 Recreation 28,000 34,664 25,000 Safe Start - 54,824 Employment grants - - Other agencies 10,000 10,500 7,000 $ 120,500 $ 163,456 $ 85,845 Grants for Capital Projects Gas tax grant $ 616,150 $ 599,418 $ 1,209,545 Provincial grants - 83,092 (3,216) $616,150 $ 682,510 $ 1,206,329 See accompanying notes and schedules to the consolidated financial statements. 24 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Unaudited) Year Ended March 31 2021 2021 2020 Budget Actual Actual EXPENDITURES General government services Legislative Council/committee remuneration $ 196,309 $ 191,967 $ 188,493 Administrative expenses 187,687 200,908 85,545 Grants to organizations 390,000 359,104 405,403 773,996 751,979 679,441 CAO/Clerk administrative Administration salaries and benefits 662,133 634,488 569,190 Administrative expenses 364,241 113,775 79,987 Town crier 500 - 21 Surveys/appraisals 2,000 - - Newsletter/promotions 13,300 12,083 - Joint occupational health and safety 79,971 72,081 71,789 Health & wellness 7,000 4,529 4,352 1,129,145 836,956 725,339 Finance/property tax administrative Administration salaries and benefits 475,365 461,554 422,641 Administrative expenses 182,693 140,645 153,426 Auditor services 40,000 40,000 40,312 Property tax administration 400,781 377,791 333,948 1,098,839 1,019,990 950,327 Information services administrative Administration salaries and benefits 294,940 282,756 264,455 Administrative expenses 219,305 149,355 175,151 Debenture interest 1,345 854 1,660 515,590 432,965 441,266 Municipal property services Salaries and benefits and benefits 171,593 190,878 170,606 Administrative expenses 63,660 54,094 52,034 Property services 193,750 131,000 132,233 Wharves 7,500 9,904 8,426 Community Development 18,000 1,295 11,338 454,503 387,171 374,637 Public works general Salaries and benefits 138,448 200,857 161,180 Administrative expenses 54,430 52,774 62,914 Special Projects 47,926 49,779 43,888 240,804 303,410 267,982 Other general government services Assessment recovery costs 354,714 354,714 352,585 Regional library 85,700 68,035 68,715 Amortization 127,635 156,798 123,791 568,049 579,547 545,091 $4,780,926 $ 4,312,018 $ 3,984,083 See accompanying notes and schedules to the consolidated financial statements. 25 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Unaudited) Year Ended March 31 2021 2021 2020 Budget Actual Actual Protective services Police services $ 1,865,462 $ 1,888,942 $ 1,841,096 Legal prosecution services 5,000 2,850 8,463 By-law enforcement 64,298 36,176 34,110 Animal control 70,400 65,200 63,645 Emergency measures 55,796 66,627 50,053 2,060,956 2,059,795 1,997,367 Fire services Fire coordinator/advisory 193,399 61,665 68,202 Fire protection agreement 301,188 306,139 298,883 Fire rescue boat 9,234 10,154 9,342 503,821 377,958 376,427 Building/fire inspections Salaries and benefits 253,734 216,282 219,098 Administrative expenses 105,335 53,571 28,571 Amortization - 11,552 11,552 359,069 281,405 259,221 $2,923,846 $ 2,719,158 $ 2,633,015 Transportation services Road transport Administration $ 23,372 $ 10,399 $ 7,980 Road and sidewalk maintenance 503,325 1,633,307 865,688 Street lighting 121,726 109,619 107,251 Debenture interest 3,014 2,725 3,789 Amortization 228,850 240,397 239,757 $ 880,287 $ 1,996,447 $ 1,224,465 Environmental health services Sewage collection and disposal $ 645,602 $ 618,582 $ 608,738 Waste collection and disposal 3,982,413 3,647,330 3,816,572 Recycling project 62,940 42,244 56,126 Debenture interest 169,334 130,915 166,299 Amortization 1,803,863 1,770,924 1,742,240 $ 6,664,152 $ 6,209,995 $ 6,389,975 See accompanying notes and schedules to the consolidated financial statements. 26 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Unaudited) Year Ended March 31 2021 2021 2020 Budget Actual Actual Environmental development services Planning and zoning $ 546,293 $ 453,724 $ 503,645 Economic Development 479,126 282,981 204,900 Tourism development 73,370 33,665 59,208 Eco Park 21,617 11,316 15,701 Regional economic network - - (12) W ind Turbine 129,517 109,452 123,981 Debenture interest 74,596 72,588 78,586 Amortization 291,445 335,752 344,782 $ 1,615,964 $ 1,299,478 $ 1,330,791 Recreational and cultural services Administration $ 607,720 $ 545,400 $ 598,582 Program expenses 39,700 32,032 37,327 Church Memorial Park 50,000 50,000 85,000 Heritage properties 500 - - Debenture interest - - 368 Forest Heights Community School 35,909 5,557 27,007 New Ross Community School 8,125 1,876 4,779 After school programs 19,300 5,556 12,352 Amortization 94,725 108,379 108,985 $ 855,979 $ 748,800 $ 874,400 See accompanying notes and schedules to the consolidated financial statements. 27