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MODC 2022_2023 Consol FS_FINAL
Consolidated Financial Statements Municipality of the District of Chester March 31, 2023 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, 2023, 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, 2023, 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 September 28, 2023 Municipality of the District of Chester Consolidated Statement of Operations Year Ended March 31 2023 2023 2022 Restated Note 2 Budget Actual Actual Revenue Taxes $14,737,067 $15,360,257 $14,032,402 Grants in lieu of taxes 175,912 182,890 188,432 Sales of services 3,828,163 4,921,657 4,727,172 Other revenue from own sources 1,211,703 1,551,513 1,467,406 Transfers from Federal and Provincial governments and agencies Unconditional 99,955 119,914 80,848 Conditional 44,479 407,023 264,730 Grants for capital projects 599,418 989,629 1,198,641 Interest 24,000 1,275,668 388,926 Gain on disposal of assets (1) 85,750 103,843 $20,720,697 $24,894,301 $22,452,400 Expenditures General government services $5,766,061 $5,229,988 $4,410,746 Protective services 3,286,968 3,164,495 2,834,733 Transportation services 918,874 1,777,115 857,106 Environmental health services 6,579,125 7,072,682 6,277,179 Environmental development services 1,985,935 1,696,400 1,303,713 Recreational and cultural services 1,053,398 876,549 904,339 $19,590,360 $19,817,229 $16,587,816 Annual surplus $1,130,337 $5,077,072 $5,864,584 Accumulated surplus, beginning of the year 42,185,539 40,033,847 Adjustment on the adoption of the asset retirement - (3,712,891) obligation standard (note 2) Accumulated surplus, end of the year $47,262,612 $42,185,539 4 Municipality of the District of Chester Consolidated Statement of Change in Net Financial Assets Year Ended March 31 2023 2023 2022 Restated Note 2 Budget Actual Actual Annual surplus $1,130,337 $5,077,072 $5,864,584 Acquisition of tangible capital assets - (5,201,907) (1,967,159) Amortization of tangible capital assets 2,467,585 3,339,166 2,844,384 3,597,922 3,214,331 6,741,809 Decrease (increase) in prepaid expense - 21,922 10,208 Increase in net financial assets 3,597,922 3,236,253 6,752,017 Net financial assets Beginning of year 13,748,165 13,748,165 10,709,039 Adjustment on the adoption of the asset retirement - (3,712,891) obligation standard (note 2) End of year $17,346,088 $16,984,419 $13,748,165 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 2023 2022 Restated Note 2 Cash and cash equivalents provided by (used): Operating activities Annual surplus $5,077,072 $5,864,584 Amortization of tangible capital assets 3,339,166 2,844,384 Accretion expense 517,604 502,527 8,933,842 9,211,495 Changes in non-cash assets and liabilities Decrease (increase) in receivables (1,508,545) 400,767 Decrease (increase) in prepaid expenses 21,922 10,208 (Decrease) increase in payables (302,381) (277,692) Decrease in employee future benefits 30,874 (2,946) (Decrease) increase in deferred revenue 590,401 (16,606) Increase (decrease) in tax sale surplus (2,027) 72,351 Increase in asset retirement liabilities 44,360 - 7,808,446 9,397,578 Investing activities Acquisition of tangible capital assets (5,201,907) (1,967,159) Investments (10,000,000) - (15,201,907) (1,967,159) Financing activities Proceeds from issuance of long term debt 595,356 1,182,503 Repayment of long term debt (924,994) (1,063,877) (329,638) 118,626 Increase in cash and cash equivalents (7,723,099) 7,549,045 Cash and cash equivalents Beginning of year 38,487,055 30,938,010 End of year $30,763,956 $38,487,055 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, 2023 1. Significant accounting policies a) Reporting entity b) Basis of accounting c) Valuation allowance d) Cash and cash equivalents e) Use of estimates f) Asset retirement obligation: An asset retirement obligation is recognized when as at the financial reporting date, all of the following criteria are met: - There is a legal obligation to incur retirement costs in relation to a tangible capital asset; - The past transaction or event giving rise to the liability has occurred; - It is expected that future economic benefits will be given up; and - A reasonable estimate of the amount can be made. 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 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. In addition, implementation of PS3280 Asset Retirement Obligations has resulted in the requirement for management to make estimates regarding the useful lives of affected tangible capital assets and the expected retirement costs, as well as the timing and duration of these retirement costs, and estimates of discount and inflation rates. 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. 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. The liability for closure of operational sites and post-closure care relating to landfill sites has been recognized based on estimated future expenses. The liability is discounted using a present value calculation, and adjusted yearly for accretion expense. The recognition of a liability resulted in an accompanying increase to the respective tangible capital assets. The increase to the tangible capital assets is being amortized in accordance with the depreciation accounting policies outlined in h). Additional liabilities have also been recognized based on estimated future expenses at the end of useful life for the removal of asbestos in buildings, remediation costs for wharves, and retirement costs for wind turbines owned by the Municipality. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 1. Significant accounting policies (continued) 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, 2023 there are no known contaminated sites identified. h) 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 i) Revenue and expenditure Tax and related revenue Government transfers Other revenues j) Budget figures 9 The budget figures contained in these consolidated financial statements were approved by council on April 28, 2022 in its original fiscal plan. Note 20 outlines the original fiscal plan and the adjustments made to come to the budget figures shown in these consolidated financial statements. 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. 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: 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. 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, 2023 2. Change in accounting policies: 10 Landfill obligation: Buildings: Wharves: Wind Turbines: Effective April 1, 2021, an increase to the Wharves capital asset account of $17,774 representing the original estimate of the obligation and $12,194 increase to accumulated depreciation, and an asset retirement obligation of $101,668 adjusted for inflation and discounted to present value using a 3% rate. A decrease to the opening accumulated surplus of $96,088, as a result of the recognition of the liability and the accompanying increase in depreciation and accretion expense for the 62 years since 1962. Depreciation expense $207 (2023), $207 (2022); accretion expense $3,142 (2023), $3,050 (2022). Effective April 1, 2021 an increase to the Municipal Buildings capital asset account for buildings: Annex Building, 186 Central St, Chester; and New Ross Family Resource Centre (NRFRC), 4689 NS-12, New Ross, NS; totalling $34,723 and representing the original estimate of the obligation, with $23,068 recorded to accumulated depreciation, and with an asset retirement obligation of $213,832 adjusted for inflation and discounted to present value using a rate of 3%. A decrease to the opening accumulated surplus of $202,177, as a result of the recognition of the liability and the accompanying increase in depreciation and accretion expense for the 67 years since 1956 (Annex), and 62 years since 1962 (New Ross Family Centre). 34 Harbourview Lane was purchased by the Municipality 2023 with an anticipated demolition date of 2024. The property is known to have asbestos requiring abatement. The value of the asset and liability associated with the demolition is $44,360, such that total municipal buildings ARO asset is $79,084, and total ARO liability is $271,214 as at March 31, 2023. Depreciation expense $377 (2023), $377 (2022); accretion expense $6,607 (2023), $6,415 (2022). A decrease of $10,151,201 to the Landfill Post-Closure Liability under the old standard. An increase to the Landfill capital asset account of $10,438,140 representing the original estimate of the obligation as at March 31, 2006, and an increase of $5,537,658 to accumulated depreciation representing 18 years of amortization had the liability originally been recognized. An asset retirement obligation of $16,262,282 including closure costs and post-closure costs, adjusted for inflation and discounted to present value using a rate of 3%. A decrease to the opening accumulated surplus of $3,333,000, as a result of the recognition of the liability and the accompanying increase in depreciation and accretion expense for the 18 years since 2005-2006. Decrease in reported Landfill Closure expense by $2,122,401 March 31, 2022. Depreciation expense $369,177 (2023), $369,177 (2022); accretion expense $502,505 (2023), $487,868 (2022). Effective for the fiscal period beginning on April 1, 2022, the Municipality is required to adopt the following Public Sector Accounting standards: c) Section 3280 asset retirement obligations addresses the reporting of legal obligations associated with the retirement of certain tangible capital assets. The new accounting standard replaces existing Section PS 3270 - Solid Waste Landfill Closure and Post-Closure Liability. This standard was adopted on the modified retrospective basis at the date of adoption. Under the modified retrospective method, the discount rate and assumptions used on initial recognition are those as of the date of adoption of the standard. b) Section 2601 foreign currency translation, 1201 financial statement presentation, and 3041 portfolio investments revise current standards that the Municipality has already adopted. There is no material impact to these statements. a) Section 3450 financial instruments establishes standards for recognizing and measuring financial assets, financial liabilities, and non-financial derivatives. This standard has been adopted. There is no material impact to these statements. Effective April 1, 2021, an increase to the Wind Turbine capital asset account of $140,765 representing the original estimate of the obligation, and $49,268 increase to accumulated depreciation, and an asset retirement obligation of $173,123 adjusted for inflation and discounted to present value using a 3% rate. A decrease to the opening accumulated surplus of $81,626, as a result of the recognition of the liability and the accompanying increase in depreciation and accretion expense for the 9 years since 2014. Depreciation expense $7,038 (2023), $7,038 (2022); accretion expense $5,350 (2023), $5,194 (2022). The Municipality removed the landfill post-closure liability as at the date of adoption of PS3280 and replaced this with an asset retirement obligation. The liability represents the required closure and post-closure care for the landfill sites owned by the Municipality using March 31, 2006 as the date when the liability was assumed, with estimated useful life determined by estimation of landfill capacity and waste volumes. The Municipality owned buildings requiring asbestos remediation, wharves requiring end of life remediation, and a wind turbine each with initial dates of obligation recognition at the beginning of the asset's useful life and end of life determined by the end of the estimated useful life of the most recent signficant addition to the asset. In accordance with the provisions of the new standard, the Municipality reflected the following adjustments for the year ended April 1, 2022: Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 2. Change in accounting policies (continued): Adjustment on adoption of ARO standard Landfill Absestos Wharf Wind Turbine Total ARO Closure Removal Removal Retirement Impacts ARO liability $16,262,282 $213,832 $101,668 $173,123 $16,750,905 ARO asset 10,438,140 34,723 17,774 140,765 10,631,402 ARO accumulated depreciation (5,537,658) (23,068) (12,194) (49,268) (5,622,188) Net asset 4,900,482 11,655 5,580 91,497 5,009,214 Landfill closure liability, ending (10,151,201) - - - (10,151,201) Landfill closure expense 2,122,401 - - - 2,122,401 Adjustment on adoption $3,333,000 $202,177 $96,088 $81,626 $3,712,891 Accumulated accretion 5,824,142 179,109 83,894 32,358 6,119,503 Accumulated depreciation 5,537,658 23,068 12,194 49,268 5,622,188 Landfill closure liability, opening (8,028,800) - - - (8,028,800) Adjustment on adoption $3,333,000 $202,177 $96,088 $81,626 $3,712,891 3. Contributions to boards and commissions Lunenburg County Regional Housing Authority Responsible for 11.09% share of operations in Western Shore Unit Responsible for 11.09% share of operations in New Ross Unit South Shore Regional Library Board - 18.55% share During 2023, the Municipality paid $85,700 (2022 - $68,035) to the South Shore Regional Library Board. 4. Contributions to provincial government departments & agencies Corrections contribution Education contribution Assessment services contribution 11 The required contribution for assessment services is calculated first using an amount, set by the PVSC, to be recovered from all municipal units for 2023 $17,532,046 (2022 - $17,694,302). 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 2023 the Municipality paid $345,781 (2022 - $349,827) 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 2023, the Municipality incurred costs payable of $36,998 (2022 - $14,889) to the Lunenburg County Regional Housing Authority as its share of operations. The contribution to the South Shore Regional Centre for Education is calculated using the mandatory municipal education rate (set by the Minister of Education) times the Municipality's uniform assessment. For 2023 the education tax rate of $.3048 (2022 - $.3048) per $100 of uniform assessment times the uniform assessment of $1,741,116,861 (2022 - $1,707,471,788) for a total amount paid of $5,306,924 (2022 - $5,204,374). 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 2023, the Municipality paid $233,869 (2022 - $233,337) to the province for correction services. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 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 2023 2022 Cash $2,055,968 $314,899 $28,393,089 $30,763,956 $23,501,217 Short term investments (GICs)- - - - 14,985,838 $2,055,968 $314,899 $28,393,089 $30,763,956 $38,487,055 Operating Capital Reserves 2023 2022 Gas tax grant program $- $- $4,892,425 $4,892,425 $3,276,929 Tax sale surplus account 353,722 - - 353,722 351,450 Landfill closure costs - - - - 10,151,201 Unrestricted cash 1,702,246 314,899 23,500,664 25,517,809 24,707,475 $2,055,968 $314,899 $28,393,089 $30,763,956 $38,487,055 6. Receivables Taxes receivable - rate roll:Current 2021 2023 2022 Year 2022 and Prior Total Total Balance, beginning of year $- $1,058,077 $324,986 $1,383,063 $1,836,832 Collections for other governments 1,924,780 - - 1,924,780 1,758,135 Current year's levy 17,726,756 - - 17,726,756 16,349,518 19,651,536 1,058,077 324,986 21,034,599 19,944,485 Deduct Current year's collections 18,327,310 779,725 170,696 19,277,732 18,250,280 Reduced taxes 324,916 - - 324,916 311,142 Write-offs - - - - - 18,652,227 779,725 170,696 19,602,648 18,561,422 Balance, end of year $999,309 $278,352 $154,290 $1,431,951 $1,383,063 Allowance for uncollectible taxes & unresolved assessments (71,206) (70,150) Allowance for other doubtful accounts (153,009) (49,138) Taxes receivable - interest 114,716 115,726 Billing receivable - water utility - (42) HST receivable 310,232 92,187 Due from Federal government 312,953 7,801 Due from Provincial government 479,234 335,181 Due from other local governments 648,439 59,950 Landfill receivable 613,454 504,504 Water supply upgrade loans 109,243 117,193 Private road upgrade loans 16,546 19,516 Other 397,143 185,360 Receivables, end of year $4,209,696 $2,701,151 7. Long term Investments 2023 2022 The Bank of Nova Scotia (BNS) Long Term Non Redeemable GIC 10,000,000 - $10,000,000 - BNS Long Term Non Redeemable GIC, certificate number 10000001YJSJ9, was issued in the amount of $10,000,000 on September 16, 2022 with a 5 year term. The maturity date is September 16, 2027, and the maturity value is $12,715,902.85. Interest is compounded annually at an interest rate of 4.92%. This GIC is held to cover the Landfill Asset Retirement Obligation. 12 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 8. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 8. Employee future benefits - non-vested sick leave benefits The Municipality has provided non-vested sick leave benefits as follows: 2023 2022 Accrued benefit liability Accrued benefit obligation, beginning of the year $203,237 $215,105 Current service cost for the year 19,542 17,140 Interest cost for the year 3,912 3,936 Fiscal payments for employees (24,743) (24,022) Accrued benefit liability 201,948 212,159 Unamortized gains 41,085 (8,922) Accrued benefit obligation $243,033 $203,237 - Employee future benefits, non-vested sick leave benefits Current service costs $19,542 $17,140 Interest cost for the year 3,912 3,936 $23,454 $21,076 The significant actuarial assumptions adopted in measuring the municipality's non-vested sick leave benefits are as follows: Assumptions:2023 2022 Discount rate At start of year 1.95%1.95% At end of year 2.97%1.95% Retirement age at age 65 age 65 Rate of compensation increase 3.00%3.00% 13 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, 2023. 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, 2023 9. 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. 2023 2022 Prepayment of taxes $364,749 $336,131 Other deferred revenue 1,003,679 441,895 Total Deferred Revenue $1,368,428 $778,026 10. Tax sale surplus account The tax sale surplus account amounts and the years in which they arose are as follows: 2023 2022 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 83,570 2022 58,710 72,351 accumulated interest 21,143 9,529 $349,423 $351,450 14 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, 2023 11. Long term debt 2023 2022 Capital asset loans $174,694 $238,478 - 63,000 45,250 90,500 1,647,336 1,882,669 166,000 207,500 1,558,864 1,818,674 204,000 238,000 800,186 932,503 200,000 250,000 595,356 - $5,391,686 $5,721,324 Principal repayments during the next five years are due as follows: 2024 $1,032,440 2025 $812,496 2026 $812,496 2027 $812,496 2028 $642,862 15 Municipal Finance Corporation debenture, bearing interest from 2.218% - 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 of 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 of 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 2.812% - 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 0.400% - 2.376%, repayable in annual instalments of $132,317 plus interest to fiscal 2027, then reduced to annual installments of $54,183 plus interest, maturing in 2032. The original debenture of $932,503 was taken out in 2022 for environmental health. Interest expensed on long term debt during the year was $164,655 (2022 - $175,876). Municipal Finance Corporation debenture, bearing interest from 2.575% - 3.782%, repayable in annual instalments of $59,536 plus interest, maturing in 2032. The original debenture of $595,356 was taken out in 2022 for environmental health. Municipal Finance Corporation debenture, bearing interest from 2.963% - 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 0.500% - 1.489%, repayable in annual instalments of $50,000 plus interest, maturing in 2027. The original debenture of $250,000 was taken out in 2022 for environmental health. Municipal Finance Corporation debenture, bearing interest from 3.003% - 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 2.761% - 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. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 Asset Retirement Obligation 12. Tangible capital assets Opening Cost Asset Additions Disposals Transfers Ending Cost Buildings - Plants $11,949,298 $$- $$11,949,298 Electronic Data Equipment 1,461,117 - - 1,461,117 Lagoons 233,493 - - 233,493 Land 3,057,621 466,304 - - 3,523,925 Land Improvements 2,221,467 6,858 - - 2,228,325 Landfill 25,068,509 - - - 25,068,509 Machinery and Equipment 4,868,225 1,393,199 - - 6,261,424 Municipal Buildings 3,639,320 44,360 - - 3,683,680 Sewer Lines 8,283,492 53,624 - - 8,337,116 Sidewalks 2,726,065 - - 2,726,065 Small Equipment 356,165 18,015 - - 374,180 Streets, Roads & Curbs 6,029,389 - - 6,029,389 Vehicles 694,946 240,856 (32,386) - 903,416 Wharves 348,990 - - - 29,993 378,982 Wind Turbine 5,264,658 - - - 5,264,658 Work in Progress 828,366 2,978,691 - (29,993) 3,777,065 $77,031,121 $44,360 $5,157,547 $(32,386) $- $82,200,642 Asset Opening Retirement Amortization Ending Accumulated Obligation During Amortization Accumulated Amortization Asset the Year on Disposals Amortization Buildings - Plants $7,078,229 $443,697 $- $7,521,926 Electronic Data Equipment 1,298,575 100,345 - 1,398,920 Lagoons 86,660 13,751 - 100,411 Land - - - Land Improvements 1,576,526 78,062 - 1,654,588 Landfill 18,142,218 1,450,957 - 19,593,175 Machinery and Equipment 3,339,462 369,291 - 3,708,753 Municipal Buildings 1,633,780 97,148 - 1,730,927 Sewer Lines 6,022,959 164,902 - 6,187,861 Sidewalks 1,860,175 99,504 - 1,959,679 Small Equipment 336,641 13,149 - 349,790 Streets, Roads & Curbs 4,477,725 144,051 - 4,621,776 Vehicles 623,358 86,223 (32,386) 677,195 Wharves 174,870 14,655 - 189,525 Wind Turbine 2,126,599 263,431 - 2,390,031 $48,777,777 - $3,339,166 $(32,386) $52,084,557 NBV 2023 NBV 2022 Buildings - Plants $4,427,372 $4,871,069 Electronic Data Equipment 62,197 162,542 Lagoons 133,082 146,833 Land 3,523,925 3,057,621 Land Improvements 573,737 644,941 Landfill 5,475,334 6,926,292 Machinery and Equipment 2,552,671 1,528,763 Municipal Buildings 1,952,753 2,005,540 Sewer Lines 2,149,255 2,260,533 Sidewalks 766,386 865,890 Small Equipment 24,390 19,524 Streets, Roads & Curbs 1,407,613 1,551,664 Vehicles 226,221 71,588 Wharves 189,457 174,119 Wind Turbines 2,874,627 3,138,059 Work in Progress 3,777,065 828,366 $30,116,085 $28,253,344 16 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 13. School Capital Fund 14. Pension plans Defined Contribution Plan 15. Asset retirement obligation The Municipality's asset retirement obligation consists of several obligations as follows: a) Landfill obligation b) Asbestos abatement d) Wharf removal 17 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. 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 5% or 6% of base salary. During the year, the Municipality contributed $229,356 (2022 - $194,281) to the pension plan. The liability for the closure of operational sites and post-closure care for the Municipality owned landfill has been recognized under PS 3280 - Asset Retirement Obligation. Landfill closure costs include estimated expenses for capping the cell sites as well as ongoing environmental monitoring and care as calculated for Landfill Cells 1 - 4B using 2022 CBCL and 2016 Dillon reports. The landfill had an estimated 27 year useful life, with nine years remaining. Post closure care is estimated to be required for 25 years from the date of site closure. These costs were discounted using a discount rate of 3% per annum. Municipal buildings are believed to have asbestos, which represents a health hazard upon demolition of the building and there is a legal obligation to remove it. With the adoption of PS 3280 - Asset Retirement Obligation, the Municipality is recognizing a liability, adjusted for inflation and discounted using a rate of 3% per annum. A Hazardous Materials Assessment Report was completed for each of the following municipal buildings: Annex Building; New Ross Family Resource Centre (NRFRC), 4689 NS-12, New Ross, NS; and 34 Harbourview Lane, Chester, NS. The Annex building was established in 1956 and is estimated to have a 103 year life; the NRFRC was established in 1962 and is estimated to have an 96 year useful life; and 34 Harbourview was purchased in 2023 and is expected to be demolished in 2024. The estimated undiscounted future cash values for asbestos and other remediation are $287,856, $267,029, and $46,002 respectively. Asset values are $13,707, $21,016 (April 1, 2021) and $44,360 (March 31, 2023). Opening asset retirement obligations are $93,618, $120,213 (April 1, 2021), and $44,360 (March 31, 2023). Total accretion expense is $6,607 (2023) and $6,415 (2022) for a total ending ARO liability balance for municipal buildings of $271,214 as at March 31, 2023. The Municipality has wharves, originally built in 1962 and with an expected 86 year life, that will have to be removed at end of life. With the adoption of PS 3280 - Asset Retirement Obligation, the Municipality is recognizing a liability, adjusted for inflation and discounted using a rate of 3% per annum, and based on external contractor and internal assessment. The estimated undiscounted future cash value for meeting the obligation is $225,835, and with an asset value of $17,774 depreciated on a straightline basis. The opening asset retirement obligation is valued at $101,669, with accretion expense $3,142 (2023) and $3,050 (2022) for an ending ARO liability balance of $107,860 as at March 31, 2023. 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. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 15. Asset retirement obligation (continued) e) Wind Turbine retirement 2023 2022 Asset retirement obligation: Asset Asset Landfill Absestos Wharf Wind Turbine Retirement Retirement Closure Removal Removal Retirement Liability Liability Opening balance $16,750,150 $220,247 $104,718 $178,317 $17,253,432 $16,750,905 Addition 44,360 44,360 Accretion expense 502,505 6,607 3,142 5,350 517,604 502,527 Closing balance $17,252,655 $271,214 $107,860 $183,667 $17,815,396 $17,253,432 16. Commitments Solid Waste - Sales of Services Solid Waste - Processing of Waste Agreement Waste Collection 17. Remuneration 2023 2022 Councilor Remuneration Mileage Expenses Total Total Andre Veinotte 23,372 60 2,433 25,866 24,424 Floyd Shatford 26,710 1,201 401 28,312 26,389 Derek Wells 23,372 1,161 24,534 8,051 Allen Webber 51,040 (7) 5,574 56,606 52,000 Abdella Assaff 23,372 483 2,506 26,360 24,340 Tina Connors 23,372 2,609 2,883 28,864 26,713 Sharon Church 23,372 305 3,593 27,271 24,155 Danielle Barkhouse 10,856 Staff Daniel McDougall 161,046 1,275 29,949 192,270 180,885 $355,657 $5,926 $48,500 $410,083 $377,813 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 13 years, expiring on March 31, 2036, and with the Town of Lunenburg and the Lunenburg Regional Solid Waste Management Committee for the next 3 years, expiring March 31, 2026, to accept solid waste at its 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 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. The agreement with Sustane has not yet been triggered. In April 2019, the Municipality signed a contract for waste collection services with a 6 year term starting April 2020 and expiring in March 2026. Total payments remaining over the next three years amount to $2,386,305 plus HST. The transition and recognition of asset retirement obligations involved an accompanying increase to the Landfill, Municipal Buildings, Wharves and Wind Turbine capital assets and restatement of prior year numbers. The Municipality has a Wind Turbine that went into service March 2014, with a current contract to operate for twenty years after initial operation, or to 2034. With adoption of PS 3280, the Municipality is recognizing a liability for retiring the Wind Turbine after the twenty years, adjusted for inflation and discounted using a rate of 3% per annum based on external contractor and internal assessment. The estimated undiscounted future cash value for meeting the obligation is $254,238, with asset value of $140,765 depreciated on a straightline basis. The opening asset retirement obligation is valued at $173,123, with accretion expense $5,350 (2023) and $5,193 (2022) for an ending ARO liability balance of $183,667 as at March 31, 2023. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 18. Segmented Information Recreation General Environmental Environmental and 2022 Government Protective Transportation Health Development Culture 2023 Restated Note 2 Services Services Services Services Services Services Consolidated Consolidated Revenue Taxes $10,750,120 $362,602 $306,229 $3,244,340 $696,966 $- $15,360,257 $14,032,402 Grants in lieu of taxes 177,681 5,209 - - - - 182,890 188,432 Sales of Services - 66,594 - 3,939,349 834,569 81,145 4,921,657 4,727,172 Other revenue from own sources 328,059 70,033 7,368 1,065,941 80,112 - 1,551,513 1,467,406 Unconditional transfers from other governments 7,383 - - 112,531 - - 119,914 80,848 Conditional transfers from other governments 352,247 4,726 - - 15,000 35,050 407,023 264,730 Grants for capital projects 590,662 - - 398,967 - - 989,629 1,198,641 Interest 1,272,824 2,844 - - - - 1,275,668 388,926 Gain on disposal of capital assets 85,750 - - - - - 85,750 103,843 13,564,726 512,008 313,597 8,761,128 1,626,647 116,195 24,894,301 22,452,400 Expenditures Salaries and benefits 2,559,882 346,237 21,198 1,149,871 654,552 513,059 5,244,799 4,401,606 Goods and services 1,142,573 2,818,258 1,551,400 2,786,468 587,807 149,194 9,035,700 7,495,207 Gov't transfers & board contributions 431,482 - - - - - 431,482 417,862 Amortization 206,508 - 203,479 2,525,500 327,338 76,341 3,339,166 2,844,384 Interest 69 - 1,038 108,338 59,303 - 168,748 183,452 Accretion 9,749 502,505 5,350 517,604 502,527 Other 879,725 - - - 62,050 137,955 1,079,730 742,778 5,229,988 3,164,495 1,777,115 7,072,682 1,696,400 876,549 19,817,229 16,587,816 Annual surplus (deficit)$8,334,738 $(2,652,487) $(1,463,518) $1,688,446 $(69,753) $(760,354) $5,077,072 $5,864,584 19 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 17. Compensation Disclosure Act 18. Segmented Information (continued) General government services Protective services Transportation servicers This department is responsible for the development and maintenance of roads, sidewalks and street lighting. Environmental health services Environmental development services Recreational and cultural services 19. Contingency 20. Budgeted figures Budget Approved budget - annual surplus (deficit)-$ Amortization of tangible capital assets (3,339,166) Transfers to (from) other funds 3,812,372 Transfer from own accumulated surplus (267,863) Principle payments on debt 924,994 Annual surplus per consolidated financial statements 1,130,337$ 20 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. 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 December 31, 2020. As of the date of these financial statements, no remediation work had begun, as an assessment of options was required. Remediation work is expected to be completed in 2024 and 2025. No contingent liability is considered necessary. 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: 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 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. 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. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2023 21. Accumulated surplus Operating Capital Reserves 2023 2022 Restated Note 2 Accumulated surplus, beginning of the year $(5,594,797) $21,713,442 $26,066,894 $42,185,539 $40,033,847 Financial activities Revenue (fund transfer): Interest revenue 150,871 342,777 782,020 1,275,668 388,926 Gain on disposal of assets - 85,750 - 85,750 103,843 Other revenue 23,474,447 30,275 28,161 23,532,883 21,959,631 Transfers between funds (6,727,434) 3,805,547 2,921,886 - - 16,897,884 4,264,350 3,732,067 24,894,301 22,452,400 Expenditures Repayment of debt principal 924,994 - - 924,994 1,063,877 Other expenditures (excluding amortization)15,960,397 - 62 15,960,459 13,240,905 16,885,391 - 62 16,885,453 14,304,782 Annual surplus before PSA adjustments 12,493 4,264,350 3,732,005 8,008,848 8,147,618 Public sector accounting (PSA) standards adjustments: Eliminate (add) expenses to comply with PSA standards Amortization of capital assets - (3,339,166) - (3,339,166) (2,844,384) Accretion (517,604) (517,604) (502,527) Repayment of debt principal - 924,994 - 924,994 1,063,877 - (2,931,776) - (2,931,776) (2,283,034) Annual surplus (deficit)12,493 1,332,574 3,732,005 5,077,072 5,864,584 Adjustment on the adoption of the asset retirement - - (3,712,891) obligation standard (note 2) Accumulated Surplus, end of the year $(5,582,304) $23,046,017 $29,798,899 $47,262,612 $42,185,539 Financial position Cash $2,055,968 $314,899 $28,393,089 $30,763,956 $38,487,055 Receivables 3,944,151 265,545 - 4,209,696 2,701,151 Long Term Investments - 10,000,000 - 10,000,000 - Due from (to) own funds (7,010,329) 5,604,519 1,405,810 - - (1,010,211) 16,184,964 29,798,899 44,973,652 41,188,206 Other liabilities (payables and accruals)3,382,474 31,250 - 3,413,724 3,687,258 Deferred revenue 1,351,727 16,700 - 1,368,427 778,026 Asset Retirement Obligation 17,815,396 17,815,396 17,253,433 Long term debt - 5,391,686 - 5,391,686 5,721,324 4,734,201 23,255,032 - 27,989,233 27,440,041 Net financial assets (5,744,412) (7,070,068) 29,798,899 16,984,419 13,748,165 Non-financial assets 162,108 30,116,085 - 30,278,193 28,437,374 Accumulated surplus $(5,582,304) $23,046,017 $29,798,899 $47,262,612 $42,185,539 21 Municipality of the District of Chester Schedules to Consolidated Statement of Operations (Unaudited) Year Ended March 31 2023 2022 Restated Note 2 Budget Actual Actual REVENUE Taxes Residential assessable property $11,942,698 $11,940,103 $10,924,672 Commercial based taxable assessments 1,517,797 1,502,056 1,443,748 Resource Taxable assessments 339,899 330,681 315,518 Non-profit acreage 5,471 5,728 5,471 Forest property tax (less than 50,000 acres)26,940 26,955 27,135 Forest property tax (50,000 acres or more)8,062 8,062 8,062 380,372 371,426 356,186 Area rates Protective services 364,119 362,602 335,606 Transportation services 291,307 306,229 275,219 Environmental Health services 3,225,916 3,244,340 3,014,087 3,881,342 3,913,171 3,624,912 Business property Based on revenue (Aliant)47,194 44,352 45,304 NS Power HST rebate 51,895 53,614 45,951 99,089 97,966 91,255 Deed Transfer tax 1,790,000 2,427,161 2,364,892 Wind Farm Developer tax 696,930 696,966 690,030 Transfers and collections for other governments Collection - other governments 1,915,543 1,924,780 1,758,135 Transfers to local fire commissions (1,915,543) (1,935,581) (1,768,829) - (10,801) (10,693) 20,308,228 20,938,048 19,485,002 Education mandatory contribution (Note 4)(5,306,924) (5,306,924) (5,204,374) Correction services (Note 4)(233,337) (233,869) (233,337) Regional Housing Authority (Note 3)(30,900) (36,998) (14,889) (5,571,161) (5,577,791) (5,452,600) $14,737,067 $15,360,257 $14,032,402 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 2023 2022 Restated Note 2 Budget Actual Actual Grants in lieu of taxes Federal government $48,970 $49,020 $58,858 Provincial government Real property 59,568 58,799 57,665 Crown timberland 32,574 32,561 32,574 Fire protection 5,209 5,209 5,158 Conservation 7,000 12,879 11,585 153,320 158,468 165,840 Provincial government agencies NS Power Incorporated 22,592 24,422 22,592 $175,912 $182,890 $188,432 Sales of services Animal control fees - other local govt $36,000 $39,529 $39,317 Waste Collection fees - other local governments 2,830,066 3,418,757 3,749,309 Waste Collection fees - surplus repayment - 520,594 (5,219) Planning services - other local governments 59,213 52,048 49,999 Building/fire inspection services - other local gov't 27,631 24,288 63,079 Recreation and cultural services 86,950 68,202 47,396 FHCS 20,800 12,942 6,341 REMO - other local governments 5,003 2,777 2,668 Wind Energy 762,500 782,520 774,282 $3,828,163 $4,921,657 $4,727,172 Other revenue from own sources Administrative services $348,004 $328,059 $439,592 Transportation services 6,019 7,368 12,589 Building inspection services 40,000 67,557 66,805 Animal control services 1,925 2,476 1,620 Sewer hookup services 500 - 2,479 Solid waste & disposal services 767,336 1,065,940 773,615 Planning services 22,920 41,610 132,412 Industrial park services 25,000 38,503 38,294 $1,211,703 $1,551,513 $1,467,406 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 2023 2022 Restated Note 2 Budget Actual Actual Unconditional transfers from Federal and Provincial governments and agencies Provincial government Service Nova Scotia Assessment Act - farm acreage $7,145 $7,383 $7,145 Recycling projects 92,810 112,531 73,703 $99,955 $119,914 $80,848 Conditional transfers from Federal and Provincial governments and agencies Federal government Employment grants $3,000 $11,222 $18,675 Infrastructure grant $- $305,152 $(10,104) Provincial government Emergency measures 5,479 4,726 4,726 Economic development - 19,200 - Recreation 32,000 35,050 51,500 Safe Start - 25,173 199,133 Other agencies 4,000 6,500 800 $44,479 $407,023 $264,730 Grants for Capital Projects Gas tax grant 599,418 590,662 1,198,641 Provincial grants - 398,967 - $599,418 $989,629 $1,198,641 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 2023 2023 2022 Restated Note 2 EXPENDITURES Budget Actual Actual General government services Legislative Council/committee remuneration $204,534 $200,671 $187,141 Administrative expenses 119,991 62,755 105,534 Grants to organizations 609,000 535,805 203,398 Elections - - 9,618 933,525 799,231 505,691 CAO/Clerk administrative Administration salaries and benefits 736,860 815,435 657,123 Administrative expenses 458,290 213,866 156,815 Town crier 500 - 454 Surveys/appraisals 2,000 - - Newsletter/promotions 20,000 7,316 7,401 Joint occupational health and safety 44,000 9,941 67,550 Health & wellness 22,000 4,950 4,283 1,283,650 1,051,508 893,626 Finance/property tax administrative Administration salaries and benefits 618,904 606,679 493,883 Administrative expenses 214,302 184,883 187,427 Auditor services 40,000 55,498 39,833 Property tax administration 379,860 371,939 347,982 1,253,066 1,218,999 1,069,125 Information services administrative Administration salaries and benefits 395,506 340,474 293,541 Administrative expenses 219,110 196,384 197,192 Debenture interest and discounts 278 69 924 614,894 536,927 491,657 Municipal property services Salaries and benefits and benefits 274,560 288,133 201,531 Administrative expenses 66,263 62,188 56,889 Property services 312,000 227,166 210,181 Wharves 7,500 15,150 4,423 Community Development 12,000 535 2,763 672,323 593,172 475,787 Public works general Salaries and benefits 247,595 289,096 236,139 Administrative expenses 69,166 64,511 135,731 Special Projects 53,853 28,805 31,209 370,613 382,412 403,079 Other general government services Assessment recovery costs 345,781 345,781 349,827 Regional library 85,700 85,700 68,035 Amortization - 206,508 144,454 Accretion - 9,749 9,465 431,481 647,738 571,781 $5,559,552 $5,229,988 $4,410,746 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 2023 2023 2022 Restated Note 2 Budget Actual Actual Protective services Police services $2,206,780 $2,200,063 $1,983,041 Legal prosecution services 5,000 4,419 1,200 By-law enforcement 69,391 64,400 38,805 Animal control 76,629 70,153 70,564 Emergency measures 62,070 79,931 49,840 2,419,870 2,418,965 2,143,450 Fire services Fire coordinator/advisory 219,275 85,800 91,818 Fire protection agreement 306,360 339,231 312,232 Fire rescue boat 9,599 10,788 10,654 535,234 435,819 414,704 Building/fire inspections Salaries and benefits 234,992 233,904 188,617 Administrative expenses 96,871 75,807 76,409 Amortization - - 11,552 331,863 309,711 276,578 $3,286,968 $3,164,495 $2,834,733 Transportation services Road transport Administration $40,719 $27,129 $22,625 Road and sidewalk maintenance 547,605 1,414,625 477,629 Street lighting 125,703 130,844 114,544 Debenture interest 1,368 1,038 1,911 Amortization - 203,479 240,397 $715,395 $1,777,115 $857,106 Environmental health services Sewage collection and disposal $822,467 $665,813 $895,595 Waste collection and disposal 2,991,194 3,201,986 2,699,658 Recycling project 78,588 68,540 51,892 Debenture interest 161,376 108,338 114,275 Amortization - 2,525,500 2,027,891 Accretion 502,505 487,868 $4,053,625 $7,072,682 $6,277,179 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 2023 2023 2022 Restated Note 2 Budget Actual Actual Environmental development services Planning and zoning $675,212 $609,224 $499,265 Economic Development 379,534 269,356 213,417 Tourism development 105,555 91,421 21,947 Regional economic network - - - Wind Turbine 161,841 162,009 148,565 Debenture interest 61,555 59,303 66,342 Amortization - 327,338 327,338 Accretion 5,350 5,194 $1,658,597 $1,696,400 $1,303,713 Recreational and cultural services Administration $809,307 $629,514 $742,824 Program expenses 39,700 44,698 47,410 Church Memorial Park 75,000 75,000 - Heritage properties 500 - - Forest Heights Community School 21,300 18,028 10,898 New Ross Community School 3,000 6,247 727 After school programs 28,250 26,721 9,727 Amortization 76,341 76,341 92,753 $1,053,398 $876,549 $904,339 See accompanying notes and schedules to the consolidated financial statements. 27