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HomeMy Public PortalAbout2018-03-31_Report_Consolidated Financial Statements Consolidated Financial Statements Municipality of the District of Chester March 31, 2018 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 Assets (Debt) 5 Consolidated Statement of Financial Position 6 Consolidated Statement of Cash Flows 7 Notes to the Consolidated Financial Statements 8 - 22 Schedules to Consolidated Statement of Operations 23 - 28 Grant Thornton LLP 4th Floor, Dawson Centre 197 Dufferin Street Bridgewater, NS B4V 2G9 T +1 902 543 8115 F +1 902 543 7707 www.GrantThornton.ca Audit • Tax • Advisory 2 Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd Independent auditor’s report To the Council of the Municipality of the District of Chester We have audited the accompanying consolidated financial statements of Municipality of the District of Chester, which comprise the consolidated statement of financial position as at March 31, 2018, and the consolidated statements of operations, changes in net debt, and cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting Audit • Tax • Advisory 3 Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Municipality of the District of Chester as at March 31, 2018, and the consolidated results of its operations, changes in net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Other Matters Our audit was conducted for the purposes of forming an opinion on the financial statements taken as a whole. The Supplementary schedules on pages 23 – 28 are presented for purposes of additional information and are not a required part of the financial statements. Such information has been subject to the auditing procedures applied, only to the extent necessary to express an opinion, in the audit of the financial statements taken as a whole. Bridgewater, Canada Chartered Professional Accountants September 27, 2018 Licensed Public Accountants Municipality of the District of Chester Consolidated Statement of Operations Year Ended March 31 2018 2017 Page Budget Actual Actual Revenue Taxes 23 $ 11,567,475 $ 11,514,147 $ 10,919,846 Grants in lieu of taxes 24 167,796 173,355 173,713 Sales of services 24 3,979,094 4,119,031 4,567,150 Other revenue from own sources 24 789,938 627,736 645,251 Transfers from Federal and Provincial governments and agencies Unconditional 24 75,923 102,693 116,865 Conditional 25 7,500 41,831 111,262 Grants for capital projects 25 2,952,772 3,590,352 679,608 Interest 8,500 194,135 156,375 Gain on disposal of assets - 6,542 - $ 19,548,998 $ 20,369,822 $ 17,370,070 Expenditures General government services 26 $ 3,809,976 $ 3,372,755 $ 3,358,133 Protective services 27 2,656,554 2,493,269 2,398,401 Transportation services 27 903,207 765,547 802,361 Environmental health services 27 5,643,094 5,498,344 6,081,881 Environmental development services 27 1,380,744 1,157,664 1,174,752 Recreational and cultural services 28 933,859 811,272 858,306 Loss on disposal of assets - - 341,614 $ 15,327,434 $ 14,098,851 $ 15,015,448 Annual surplus $ 4,221,564 $ 6,270,971 $ 2,354,622 Accumulated surplus, beginning of the year 22,452,974 20,098,352 Accumulated surplus, end of the year $ 28,723,945 $22,452,974 See accompanying notes and schedules to the consolidated financial statements. 4 Municipality of the District of Chester Consolidated Statement of Change in Net Assets (Debt) Year Ended March 31 2018 2017 Budget Actual Actual Annual Surplus $ 4,221,564 $ 6,270,971 $ 2,354,622 Acquisition of tangible capital assets (9,027,100) (7,112,698) (1,131,374) Write off of tangible capital assets - 34,000 341,614 Amortization of tangible capital assets 2,489,220 2,276,617 2,357,166 (2,316,316) 1,468,890 3,922,028 Decrease in other non-financial assets - 10,259 - (Increase) decrease in prepaid expense - (155,272) 72,767 Increase in net assets (2,316,316) 1,323,877 3,994,795 Net assets (debt) Beginning of year 1,509,802 1,509,802 (2,484,993) End of year $ (806,514) $ 2,833,679 $ 1,509,802 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 2018 2017 Operating activities Net revenue $ 6,270,971 $ 2,354,622 Amortization 2,276,617 2,357,166 Write off of tangible capital assets 34,000 341,614 8,581,588 5,053,402 Changes in non-cash working capital Increase in receivables (1,216,011) (707,220) (Increase) decrease in prepaid expenses (155,272) 72,767 Increase in other non-financial assets 10,259 - Increase (decrease) in payables 90,331 (460,165) (Decrease) Increase in employee future benefits (7,795) 1,327 Increase in deferred revenue 47,563 8,900 Increase (decrease) in tax sale surplus 50,530 (5,380) Increase in landfill closure costs 730,234 1,411,434 8,131,427 5,375,065 Capital transactions Acquisition of tangible capital assets (7,112,698) (1,131,374) (7,112,698) (1,131,374) Financing activities Proceeds from issuance of short term debt Capital asset loans 2,592,000 - Proceeds from issuance of long term debt Capital asset loans - 521,000 Repayment of short term debt Capital asset loans - (450,738) Repayment of long term debt Capital asset loans (1,437,833) (1,653,733) On behalf of other local governments 1,154,167 (1,583,471) Change in net cash and cash equivalents 2,172,896 2,660,220 Cash and cash equivalents Beginning of year 15,507,929 12,847,709 End of year $ 17,680,825 $ 15,507,929 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, 2018 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, 2018 there are no known contaminated sites identified. 8 The consolidated financial statements of the Municipality of the District of Chester are prepared by management in accordance with Canadian Public Sector Accounting Standards. 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 entities 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 Canadian Public Sector Accounting Standards, 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. Actual results could differ from those reported. Landfill closure and post closure costs are recognized as the landfill site's capacity is used. Usage is measured based on tonnes of waste added to the site. Landfill closure and post closure costs are discounted using the Municipality's average rate earned on funds invested for future landfill closure and post-closure expenses. 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, 2018 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) Related party transactions k) Contractual rights k) Inter-entity transactions 9 Other revenues are recognized as services or goods are provided, the exchange amount is measurable and collectibility 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. Effective for the fiscal period beginning April 1, 2017, the Municipality was required to adopt Public Sector Accounting section 2200, related party transactions, which establishes the disclosure requirements for the reporting of related party transactions. Management has determined that there are no transactions to disclose at this time. Effective for the fiscal period beginning April 1, 2017, the Municipality was required to adopt Public Sector Accounting Section 3380, contractual rights, which establishes the disclosure requirements for contractual rights. Management has determined that there are no contractual rights to disclose at this time. Effective for the fiscal period beginning April 1, 2017, the Municipality was required to adopt Public Sector Accounting Section 3420, inter- entity transactions, which establishes how to account for an report transactions between public sector entities that comprise a government's reporting entity from both a provider and recipient perspective. Management has determined that there are no inter-entity transactions to disclosure at this time. Property tax billings are prepared by the Municipality based on assessment rolls issued by the Property Valuation Services Corporation. 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 reasurable as a result of legal obligation to pay. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 2. Contributions to Boards and Commissions The Municipality of the District of Chester, along with other municipal units in Lunenburg County, is required to finance the operations of various boards and regional authorities. Lunenburg County Regional Housing Authority 11.00% interest in Western Shore Unit 11.00% interest in New Ross Unit During 2018, the Municipality incurred costs payable of $17,105 (2017 - $16,685) to the Lunenburg County Regional Housing Authority as its share of operations. South Shore Regional Library board - 17.94% interest During 2018, the Municipality paid $68,715 (2017 - $68,035) to the South Shore Regional Library Board. Regional Economic Network During 2018, the Municipality paid $45,794 (2017 - $45,794) to the Regional Economic Network. 3. Contributions to Provincial Government Departments & Agencies The Municipality of the District of Chester, along with other municipal units in Lunenburg County, is required to finance the operations of various provincial departments based upon formulas defined in legislation. Corrections Contribution During 2018, the Municipality paid $234,641 (2017 - $235,698) as its share of operations towards corrections facilities in Lunenburg County. Education Contribution The required contribution to the South Shore Regional School Board is calculated using the mandatory municipal education rate (set by the Minister of Education) times the Municipality's uniform assessment. For 2018 the education tax rate of $.30480 (2017 - $.30480) per $100 of uniform assessment times the uniform assessment of $1,524,133,103 (2017 - $1,509,852,243) for a total amount paid of $4,645,558 (2017 - $4,602,030). Assessment Services Contribution The required contribution for assessment services is calculated first using an amount, set by the Property Valuation Services Corporation (PVSC), to be recovered from all municipal units for 2018 $17,176,240 (2017 - $17,090,000). 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 2018 the Municipality paid $340,281 (2017 - $340,514) to the PVSC for assessment services. 4. Cash and cash equivalents The Cash and cash equivalents amount on the Statement of Financial Position includes portfolio investments as follows: Operating Capital Reserves 2018 2017 Cash $ 1,057,071 $ 50,670 $ 4,555,684 $5,663,425 $ 3,908,886 Short term investments (GICs) - - 12,017,400 12,017,400 11,599,043 $1,057,071 $50,670 $16,573,084 $17,680,825 $15,507,929 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. Operating Capital Reserves 2018 2017 Gas tax grant program $ - $ - $ 1,865,563 $1,865,563 $1,326,855 Tax sale surplus account 182,019 - - 182,019 181,953 Landfill closure costs - - 7,019,356 7,019,356 4,888,463 Unrestricted cash 875,052 $ 50,670 7,688,165 8,613,887 9,110,658 $1,057,071 $50,670 $16,573,084 $17,680,825 $15,507,929 10 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 5. Receivables 2018 2017 Taxes receivable - rate roll:Current 2016 Year 2017 and Prior Total Total Balance, beginning of year $- $ 816,616 $ 537,481 $ 1,354,097 $ 1,185,222 Collections for other governments 1,582,531 - - 1,582,531 1,455,441 Current year's levy 14,702,415 - - 14,702,415 13,787,526 16,284,946 816,616 537,481 17,639,043 16,428,189 Deduct Current year's collections 15,184,223 517,587 346,270 16,048,080 14,830,024 Reduced taxes 272,072 - - 272,072 234,840 Write-offs - - - - 9,228 15,456,295 517,587 346,270 16,320,152 15,074,092 Balance, end of year $828,651 $299,029 $191,211 1,318,891 1,354,097 Allowance for uncollectible taxes & unresolved assessments (66,829) (76,073) Allowance for other doubtful accounts (35,849) (27,230) Taxes receivable - interest 113,773 144,344 Billing receivable - water utility (42) (42) HST receivable 209,869 81,405 Due from Provincial Government 1,331,386 109,384 Due from (to) other local governments 984,144 1,139,979 Landfill receivable 544,575 387,580 Other 207,766 278,229 Balance, end of year $ 4,607,684 $3,391,673 Included in other receivables is a loan receivable in the amounts of $34,000 (2017 - $34,000) and $34,700 (2017 - $70,800) receivable from the residents serviced by the former Mill Cove Water Utility and the Aspotogan Heritage Trust respectively. The amounts receivable are for construction of private wells as agreed upon on the decommissioning of the Mill Cove Water Utility. The amount is scheduled to be repaid by residents over the next year through collection of area rates and over the next year from the Aspotogan Heritage Trust. 11 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 6. Employee Future Benefits - Non-Vested Sick Leave Benefits The Municipality of the District of Chester provides non-vested sick leave benefits to Municipal employees. Municipal employees are allowed to accumulate unused sick day credits each year, up to the allowable maximum. 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. The use of accumulated sick days for sick leave compensation ceases on termination of employment. The benefit costs and liabilities related to the plan are included in the consolidated financial statements. The most recent actuarial valuation was conducted on July 12, 2017. The Municipality has provided non-vested sick leave benefits as follows: 2018 2017 Accrued benefit liability Accrued benefit obligation, beginning of the year $ 248,333 $ 247,006 Current service cost for the year 8,854 14,958 Interest cost for the year 3,689 6,115 Amortization of experience gains - - Fiscal payments for employees (20,338) (19,746) Accrued benefit obligation 240,538 248,333 Unamortized Actuarial losses (gains)(91,749) (98,302) Accrued benefit obligation $ 148,789 $150,031 Employee future benefits, non-vested sick leave benefits Current service costs $8,854 $ 14,958 Interest cost for the year 3,689 6,115 $12,543 $21,073 The significant actuarial assumptions adopted in measuring the Municipalitiy's non-vested sick leave benefits are as follows: Discount rate 2.5% Retirement age at age 65 Rate of compensation increase 3.0% 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). 7. Deferred revenue Funds received with specific spending criteria and stipulations that result in a liability, are recorded in deferred revenue until these funds are spent on eligible expenditures. 2018 2017 Prepayment of Taxes $ 187,682 $ 131,804 Other deferred revenue 163,569 171,884 Total Deferred Revenue $ 351,251 $303,688 12 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 8. Tax sale surplus account The Municipality of the District of Chester 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. There is no tax sale surplus from the 1997-98 fiscal year that needs to be transferred to the Capital Reserve Fund in the 2017-18 fiscal year. As per provincial accounting rules for Municipalities the tax sale surplus is shown as a liability on the consolidated financial statements. The tax sale surplus account amounts and the years in which they arose are as follows: 2018 2017 1999 $ 4,224 $ 4,224 2000 1,024 1,024 2001 2,010 2,010 2003 8,396 8,396 2005 8,267 8,267 2011 20,717 20,717 2012 10,040 10,040 2014 59,147 59,147 2015 1,000 1,000 2016 43,877 65,484 2018 72,071 - accumulated interest 856 790 $ 231,629 $181,099 9. Long term debt 2018 2017 Capital asset loans $ 65,332 $ 97,998 500,000 562,500 450,000 500,000 493,614 557,398 118,400 177,600 13 Municipal Finance Corporation debenture, bearing interest from 5.01% - 5.480%, repayable in annual instalments of $63,784 plus interest, 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 4.388% - 4.889%, repayable in annual instalments of $59,200 plus interest, maturing in 2020. 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 5.65% - 5.75%, repayable in annual instalments of $32,667 plus interest, maturing in 2020. The original debenture of $490,000 was taken out in 2004 for Recreation and Culture use. Municipal Finance Corporation debenture, bearing interest from 4.645% - 4.83%, repayable in annual instalments of $62,500 plus interest, maturing in 2021. The original debenture of $1,250,000 was taken out in 2006 for environmental health services use. Municipal Finance Corporation debenture, bearing interest from 4.45% - 4.590%, repayable in annual instalments of $50,000 plus interest, 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, 2018 9. Long term debt (continued) 315,000 378,000 339,900 453,550 3,014,001 3,344,334 1,800,000 2,400,000 458,300 521,000 $ 7,554,547 $8,992,380 Principal repayments during the next five years are due as follows: 2019 $ 1,437,833 2020 $ 1,369,433 2021 $ 1,495,067 2022 $ 770,067 2023 $ 448,867 All long term debt outstanding at year end has been properly authorized by Service Nova Scotia and Municipal Relations. Interest expensed on long term debt during the year was $247,104 (2017 - $266,298). 14 Municipal Finance Corporation debenture, bearing interest from 1.62% - 3.792%, repayable in annual instalments of $330,333 plus interest, maturing in 2030. The original debenture of $4,005,000 was taken out in 2015 for environmental health and environmental development services use. Municipal Finance Corporation debenture, bearing interest from 1.192% - 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 1.15% - 2.925%, repayable in annual instalments of $62,700 plus interest, maturing in 2026. The original debenture of $521,000 was taken out in 2016 for environmental health. Municipal Finance Corporation debenture, bearing interest from 2.558% - 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 1.845% - 2.979%, repayable in annual instalments of $113,650 plus interest, maturing in 2024. The original debenture of $794,500 was taken out in 2013 for environmental health services use. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 10. Tangible capital assets Opening Cost Additions Disposals Transfers Ending Cost Buildings - Plants $ 7,997,350 $ 22,920 $ - $ - $ 8,020,270 Electronic Data Equipment 1,098,312 19,921 - - 1,118,233 Lagoons 113,516 - - - 113,516 Land 1,696,461 979,259 (1,380) - 2,674,340 Land Improvements 2,117,903 38,760 - - 2,156,663 Landfill 11,855,785 2,593,104 - 58,373 14,507,262 Machinery and Equipment 3,303,140 471,034 (162,599) 92,964 3,704,539 Municipal Buildings 3,028,038 199,643 - - 3,227,681 Sewer Lines 7,354,625 31,237 - - 7,385,862 Sidewalks 2,702,359 - - - 2,702,359 Small Equipment 309,170 17,691 - - 326,861 Streets, Roads & Curbs 5,977,973 - - - 5,977,973 Vehicles 440,855 63,832 - - 504,687 Wharves 191,210 10,489 - 42,770 244,469 Wind Turbine 5,123,893 - - - 5,123,893 Work in Progress 381,323 2,664,808 - (194,107) 2,852,024 $53,691,913 $7,112,698 $(163,979) $- $60,640,632 Opening Amortization Ending Accumulated During Amortization Accumulated Amortization the Year on Disposals Amortization Buildings - Plants $ 5,119,992 $ 247,246 $ - $ 5,367,238 Electronic Data Equipment 812,430 112,099 - 924,529 Lagoons 22,704 11,352 - 34,056 Land - - - - Land Improvements 1,043,580 109,976 - 1,153,556 Landfill 10,245,052 768,939 - 11,013,991 Machinery and Equipment 2,596,276 197,804 (129,979) 2,664,101 Municipal Buildings 1,211,728 81,107 - 1,292,835 Sewer Lines 5,264,613 146,321 - 5,410,934 Sidewalks 1,338,971 105,270 - 1,444,241 Small Equipment 288,806 11,397 - 300,203 Streets, Roads & Curbs 3,594,932 175,299 - 3,770,231 Vehicles 359,811 43,635 - 403,446 Wharves 100,999 9,779 - 110,778 Wind Turbines 788,328 256,393 - 1,044,721 $32,788,222 $2,276,617 $(129,979) $34,934,860 NBV 2018 NBV 2017 Buildings - Plants $ 2,653,032 $ 2,877,358 Electronic Data Equipment 193,704 285,882 Lagoons 79,460 90,812 Land 2,674,340 1,696,461 Land Improvements 1,003,107 1,074,323 Landfill 3,493,271 1,610,733 Machinery and Equipment 1,040,438 706,864 Municipal Buildings 1,934,846 1,816,310 Sewer Lines 1,974,928 2,090,012 Sidewalks 1,258,118 1,363,388 Small Equipment 26,658 20,364 Streets, Roads & Curbs 2,207,742 2,383,041 Vehicles 101,241 81,044 Wharves 133,691 90,211 Wind Turbines 4,079,172 4,335,565 Work in Progress 2,852,024 381,323 $ 25,705,772 $20,903,691 15 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 11. Financial Instruments Financial instruments are any contract that gives rise to financial assets of one entity and financial liabilities of another entity. Financial assets represent a contractual right to receive cash, or assets that can be used to discharge liabilities, in the future Financial liabilities represent a contractual obligation to deliver cash, or another financial asset, in the future. The Municipality of the District of Chester's financial assets include cash and cash equivalents, portfolio investments and receivables. The Municipality's financial liabilities include payables and accruals and long term debt. Risk Management The Municipality is exposed to a number of risks as a result of the financial instruments in its Statement of Financial Position that can affect its operating performance. These risks include interest rate risk, market risk, credit risk, liquidity risk and foreign exchange risk. Interest rate risk Interest rate risk is the risk relating to fluctuating changes in the market interest rate impacting the value of financial instruments. For financing the Municipality does not have any variable interest rate debt as all long term debt has fixed rates. Therefore, interest rate fluctuations has no effect until such time as the debt is refinanced. Note 10 describes future debt principal repayments. For portfolio investments the Municipality mitigates risk by diversification with multiple short term fixed rate guaranteed investment certificates. Market risk Market risk is the risk that the fair value of a financial instrument will fluctuate as a result of changes in market prices. The Municipality's objective places greater relevant importance to the preservation of capital that a competive return on portfolio investments which is why cash is invested in GICs. Credit risk The Muncipality is exposed to credit risk with respect to accounts receivable and loans receivable as described in Note 6. The Municipality has a credit monitoring process to mitigate potential credit risks and maintains provisions for potential credit losses that are assessed on an ongoing basis. Liquidity risk The Municipality has contractual obligations and financial liabilities, therefore, is exposed to liquidity risk. The Municipality monitors its liquidity risk by updating and reviewing mutli-year cash flow projections on a regular and as needed basis, and by matching its long term financing arrangements with its cash flow needs. Foreign exchange risk Foreign exchange risk arises on financial instrucments that are denominated in a foreign currency. The Muncipality's exposure is minor as it only occassionally makes payments denominated in foreign currencies and the amounts are small. Capital management The Municpality's capital management focus is on ensuring liquid resources are available for operations. This objective is considered by the Municipality in the preparation of the annual budget, in the monitoring of cash flows and in the monitoring of actual results compared to budget. As of March 31, 2018, the Municipality has met its objective of having sufficient liquid resources to meet its current obligations. 16 Municipality of the District of ChesterNotes to the Consolidated Financial StatementsMarch 31, 201812. Accumulated SurplusOperatingCapitalReserves20182017Accumulated Surplus, beginning of the year $ 2,721,716 $ 9,671,204 $ 10,060,054 $22,452,974$ 20,098,352 Financial activitiesRevenue (fund transfer)Capital grants and donations - 2,975,541 - 2,975,541 - Interest revenue 31,714 - 162,421 194,135 157,275 Other revenue 17,191,754 6,542 1,850 17,200,14617,212,795 Transfers between funds (3,358,050) 928,446 2,429,604 - - 13,865,418 3,910,529 2,593,875 20,369,82217,370,070 ExpendituresCapital asset write off - - - - 341,614 Landfill closure costs - - 730,234 730,234 1,411,435 Repayment of debt principal 1,437,833 - - 1,437,833 1,653,733 Capital funded out of revenue 397,141 - - 397,141 1,131,374 Other expenditures 11,092,000 - - 11,092,00010,905,233 12,926,974 - 730,234 13,657,20815,443,389 Annual surplus before PSA adjustments 938,444 3,910,529 1,863,641 6,712,614 1,926,681 Public sector accounting (PSA) standards adjustmentsEliminate (add) expenses to comply with PSA standards Amortization of capital assets (2,276,617) - - (2,276,617)(2,357,166) Repayment of debt principal - 1,437,833 - 1,437,833 1,653,733 Capital additions funded out of revenue - 397,141 - 397,141 1,131,374 Annual surplus (deficit) (1,338,173) 5,745,503 1,863,641 6,270,971 2,354,622 Accumulated Surplus, end of the year$ 1,383,543 $ 15,416,707 $ 11,923,695$ 28,723,945$ 22,452,974Financial positionCash $ 1,057,071 $ 50,670 $ 16,573,084 $ 17,680,825$ 15,507,875 Receivables 3,367,035 1,240,649 4,607,684 3,391,673 Due from (to) own funds (936,988) (1,417,137) 2,354,125 - - 3,487,118 (125,818) 18,927,209 22,288,50918,899,548 Short term borrowings - 2,592,000 - 2,592,000 - Other liabilities i.e. payables and accruals 1,953,518 - - 1,953,518 1,820,398 Deferred revenue 334,551 16,700 - 351,251 303,688 Landfill closure liability - - 7,003,514 7,003,514 6,273,280 Long term debt - 7,554,547 - 7,554,547 8,992,380 2,288,069 10,163,247 7,003,514 19,454,83017,389,746 Net assets (debt) 1,199,049 (10,289,065) 11,923,695 2,833,679 1,509,802 Non-financial assets 184,494 25,705,772 - 25,890,26620,943,172 Accumulated Surplus$ 1,383,543 $ 15,416,707 $ 11,923,695$ 28,723,945$ 22,452,97417 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 13. District School Board On January 31, 1982, the Municipality of the District of Chester joined with the other Municipality and Towns of Lunenburg County to form the South Shore District School Board. 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 District School Board until such time as the Board no longer requires the asset for school purposes. At that time, control will revert to the Municipality. The South Shore District School Board was subsequently amalgamated with other boards to become the South Shore Regional School Board. In 2018 all Nova Scotia school boards were amalgamated into one, the NS Education Common Services Bureau. 14. Pension plans Defined Contribution Plan The Municipality of the District of Chester 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 Standard Life Assurance Company 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 $163,878 (2017 - $165,230) to the pension plan. 15. Landfill closure costs 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 June 2016 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 are $15,766,900 when site capacity is completely utilized. The total liability recognized to date of $7,003,514 (2017- $6,273,280) is based on the capacity of the site utilized to date. The remaining $8,763,386 will be recognized as the landfill capacity is utilized each year. The estimated remaining capacity of the site is 311,515 tonnes which is currently expected to be filled over the next 7 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 recongnized each year. The total amount for landfill closure costs in reserve is $7,003,514 (2017 - $6,273,280). The estimated time for post closure care is 30 years. 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 financial statements. 18 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 16. Commitments Solid Waste - Sales of Services The Municipality of the District of Chester has contractually entered into agreements with the Valley Region Solid Waste Authority for the next 19 years, and the Town of Lunenburg and the Lunenburg Regional Solid Waste Management Committee for the next 9 years, to accept solid waste at its second generation landfill site. Fees charged to Valley Region Solid Waste Authority are a proportionate share of operating costs calculated annually on the basis of tonnes delivered to the site as a percentage of total tonnes accepted from all sources. Fees charged to the Town of Lunenburg and the Lunenburg Regional Solid Waste Management Committee are based on a per tonne charge which is adjusted annually for inflation. The Municipality of the District of Chester collects a host community fee from users based on the number of tonnes delivered to the landfill site. In order to fulfill the terms associated with these arrangements it is estimated the Municipality will be required to complete construction of three solid waste cells for the duration of the agreements. Solid Waste - Processing of Waste Agreement In August 2016 the Municipality of the District of Chester 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. Waste Collection In August 2014, the Municipality signed a contract for waste collection services with a 5 year term expiring in March 2019. A one year extension was signed in May 2018 expiring in March 2020. Total payments remaining over the next two years amount to $733,374 plus HST per year. 17. Remuneration The Municipality is required by legislation to disclose the remuneration paid to each council member and the chief administrative officer. 2018 2017 Councilor Remuneration Mileage Expenses Total Total Brad Armstrong $ - $ - $ - $ - 11,429 Danielle Barkhouse 18,920 113 5,121 24,154 9,929 Sharon Church 18,920 617 2,235 21,772 24,706 Tina Connors 18,920 3,506 1,742 24,168 25,440 Robert Myra - - - - 1,704 Abdella Assaff 18,920 920 2,369 22,209 8,783 Floyd Shatford 21,623 2,103 4,828 28,554 24,029 Andre Veinotte 6,307 - 1,688 7,995 22,581 Allen Webber 39,868 449 8,648 48,965 47,009 Marshall Hector 10,354 832 2,500 13,686 - Staff Tammy Wilson 129,471 1,431 28,427 159,329 172,732 $283,303 $9,971 $57,558 $350,832 348,342 Expenses include remuneration benefits (i.e. CPP, group insurance), conferences, meals, accomodations cell phone, and ipad. 19 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 18. Segmented Information The Municipality of the District of Chester 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. General government services 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. Protective services This department is responsible for overseeing police and legal services, animal control, fire protection issuing building permits and fire safety inspections. Transportation servicers This department is responsible for the development and maintenance of roads, sidewalks and street lighting. Environmental health services 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. Environmental development 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. Recreational and cultural services This department is responsible for promoting and offering recreation opportunities and activities to the Municipality's residents. 20 Municipality of the District of ChesterNotes to the Consolidated Financial StatementsMarch 31, 201818. Segmented Information (continued)RecreationGeneral Environmental Environmental and Government Protective Transportation Health Development Culture 20182017Services Services Services Services Services Services ConsolidatedConsolidatedRevenueTaxes$7,851,600     $267,191    $249,611           $2,482,643       $663,102             $‐              $11,514,147   $ 10,919,846   Grants in lieu of taxes 168,345          5,010          ‐                    ‐                    ‐                       ‐              173,355         173,713         Sales of Services ‐                  24,693       ‐                    3,108,852        881,978              103,508     4,119,031     4,567,150     Other revenue from own sources 218,047          28,924       9,490                305,228            66,047                ‐              627,736         645,251         Unconditional transfers fromother governments6,783              ‐              ‐                    95,910              ‐                       ‐              102,693         116,865         Conditional transfers from other governments3,041              4,767          ‐                    ‐                    ‐                       34,023       41,831           111,262         Grants for capital projects592,539          ‐              ‐                    1,991,850        ‐                       1,005,963 3,590,352     679,608         Interest194,135          ‐              ‐                    ‐                    ‐                       ‐              194,135         156,375         Gain on disposal of capital assets 6,542 ‐              ‐                    ‐                    ‐                       ‐              6,542             ‐                      9,041,032 330,585 259,101 7,984,483 1,611,127 1,143,494 20,369,822   17,370,070   ExpendituresSalaries and benefits1,679,868      258,610     10,199              956,160            488,773              452,063     3,845,673     3,769,679     Goods and services663,026          2,234,659  508,105            2,945,590        264,553              199,198     6,815,131     7,287,537     Gov't transfers & board contributions408,996          ‐              ‐                    ‐                    ‐                       ‐              408,996         407,548         Amortization185,878          ‐              238,268            1,447,234        298,593              106,644     2,276,617     2,357,166     Interest2,728              ‐              8,975                149,360            89,239                4,663         254,965         274,747         Other432,259          ‐              ‐                    ‐                    16,506                48,704       497,469         918,771         3,372,755 2,493,269 765,547 5,498,344 1,157,664 811,272 14,098,851   15,015,448   Annual surplus $ 5,668,277 $ (2,162,684) $ (506,446) $ 2,486,139 $ 453,463 $ 332,222 $6,270,971     $ 2,354,622     Supplementary InformationAdd BackAmortization$ 185,878          $ ‐              $ 238,268            $ 1,447,234        $ 298,593              $ 106,644     $2,276,617     $2,357,166     LessDebenture Principle Payments(16,000)           ‐              (67,198)            (1,086,636)       (235,333)            (32,666)      (1,437,833)    (1,653,733)    Transfers to Reserves(1,317,782)     ‐              (328,866)          (1,107,799)        (34,404)      (2,788,851)    (3,741,555)    Segment Surplus (Deficit)$4,520,373 $ (2,162,684) $ (335,376) $ 2,517,871 $ (591,076) $ 371,796 $4,320,904     $ (683,500)       21 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2018 19. Loan guarantees The Municipality has guaranteed a loan for the Hubbards and District Fire Commission for the purchase of a fire vehicle in the amount of $350,000. The balance outstanding as of March 31, 2018 is $58,284 (2017 - $87,870). Interest is calculated at prime and principal payments are $29,586 per year. The loan matures on June 4, 2019. 20. Contingency The Municipality is required to comply with new environmental legislation related to waste water treatment. As a result the Municipality is required to complete upgrades to their current waste water treatment system over the next 3 years. Currently the Municipality has not entered into any contracts to complete the necessary upgrades. Internal engineering staff have estimated that the costs to be incurred over the next three years will be approximately $2,300,000. 21. Comparative figures Certain of the 2018 comparative figures have been reclassified to conform to the financial statement presentation adopted for the current year. 22. Budgeted figures Budgeted figures have been provided for comparison purposes and have been derived from the estimates approved by the Council of the Municipality of the District of Chester. 22 Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2018 2017 REVENUE Budget Actual Actual Taxes Residential assessable property $ 10,006,960 $ 9,960,730 $ 9,472,450 Commercial based taxable assessments 1,397,526 1,379,092 1,347,645 Resource Taxable assessments 299,846 306,473 293,024 Non-profit acreage 4,360 4,360 4,360 Forest property tax (less than 50,000 acres)27,351 27,323 27,334 Forest property tax (50,000 acres or more)8,590 8,590 8,590 340,147 346,746 333,308 Area rates Protective services 283,445 283,593 277,110 Transportation services 253,472 249,611 238,035 Environmental Health services 2,526,172 2,482,643 2,289,923 3,063,089 3,015,847 2,805,068 Business property Based on revenue (Aliant)49,067 48,870 49,067 NS Power HST rebate 67,783 49,513 67,783 116,850 98,383 116,850 Deed Transfer tax 880,000 963,953 1,048,655 Wind Farm Developer tax 663,102 663,102 656,574 Transfers and collections for other governments Collection - other governments 1,501,418 1,582,531 1,455,441 Transfers to local fire commissions (1,501,418) (1,598,933) (1,461,732) - (16,402) (6,291) 16,467,674 16,411,451 15,774,259 Education mandatory contribution (Note 3)(4,645,558) (4,645,558) (4,602,030) Correction services (Note 3) (234,641) (234,641) (235,698) Regional Housing Authority (Note 2) (20,000) (17,105) (16,685) (4,900,199) (4,897,304) (4,854,413) $ 11,567,475 $ 11,514,147 $ 10,919,846 23 See accompanying notes and schedules to the consolidated financial statements. Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2018 2017 Grants in lieu of taxes Federal government $ 51,689 $ 50,145 $ 51,686 Provincial government Real property 54,042 58,101 56,596 Crown timberland 34,176 32,381 33,342 Fire protection 360 5,010 5,249 Conservation 7,000 6,814 6,311 147,267 152,451 153,184 Provincial government agencies NS Power Incorporated 20,529 20,904 20,529 $ 167,796 $ 173,355 $ 173,713 Sales of services General government services - election $- $ - $ 20,637 Animal control fees - other local govt 33,000 33,358 - Waste Collection fees - other local governments 3,045,478 3,075,494 3,631,534 Planning services - other local governments 53,826 47,485 46,921 Building/fire inspection services - other local gov't 11,914 22,160 21,897 Recreation and cultural services 85,450 77,237 82,991 FHCS 27,300 26,271 30,813 REMO - other local governments 2,476 2,533 2,503 Wind Energy 719,650 834,493 729,854 $ 3,979,094 $ 4,119,031 $ 4,567,150 Other revenue from own sources Administrative services $ 162,825 $ 218,047 $ 223,389 Transportation services 9,414 9,490 16,237 Building inspection services 18,000 25,655 25,206 Animal control services 2,125 3,269 2,564 Sewer hookup services 500 8,014 17,420 Solid waste & disposal services 571,820 297,214 329,699 Planning services 20,254 41,783 25,682 Industrial park services 5,000 24,264 5,054 $ 789,938 $ 627,736 $ 645,251 Unconditional transfers from Federal and Provincial governments and agencies Provincial government Service Nova Scotia Assessment Act - farm acreage $ 6,736 $ 6,783 $ 6,736 Recycling projects 69,187 95,910 110,129 $ 75,923 $ 102,693 $ 116,865 24 See accompanying notes and schedules to the consolidated financial statements. Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2018 2017 Conditional transfers from Federal and Provincial governments and agencies Federal government Employment grants $ 3,000 $ 3,041 $ 2,996 Provincial government Emergency measures 4,500 4,767 4,767 Recreation - 34,023 94,490 Employment grants - - 9,009 $ 7,500 $ 41,831 $ 111,262 Grants for Capital Projects Infrastructure grant $ 2,282,200 $ 1,947,952 $- Gas tax grant 589,372 592,539 589,371 PCAP grant 30,600 17,417 54,237 SNSMR grant 34,600 22,272 18,000 Local government - 26,481 - Local agencies grant 16,000 - 18,000 Donated property - 983,691 - $ 2,952,772 $ 3,590,352 $ 679,608 25 See accompanying notes and schedules to the consolidated financial statements. Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2018 2017 EXPENDITURES Budget Actual Actual General government services Legislative Council/committee remuneration $ 154,904 $ 157,849 $ 150,726 Administrative expenses 81,215 72,662 64,266 Grants to organizations 341,000 158,928 267,929 Elections 19,000 3,647 57,452 596,119 393,086 540,373 CAO/Clerk administrative Administration salaries 425,833 405,883 365,582 Administrative expenses 137,065 116,156 113,790 Town crier 500 - - Surveys/appraisals 2,000 2,346 1,043 Newsletter/promotions 23,300 10,154 10,985 Joint occupational health and safety 20,000 968 8,188 Health & wellness 68,711 69,335 4,521 677,409 604,842 504,109 Finance/property tax administrative Administration salaries 346,154 346,663 343,360 Administrative expenses 213,484 167,830 188,092 Auditor services 40,000 39,964 44,899 Property tax administration 284,850 305,580 275,919 884,488 860,037 852,270 Information services administrative Administration salaries 227,869 224,792 218,369 Administrative expenses 240,796 168,653 195,723 Debenture interest 2,729 2,729 2,992 471,394 396,174 417,084 Municipal property services Salaries 90,130 98,822 74,693 Administrative expenses 47,370 43,600 36,006 Property services 221,100 122,793 114,662 Wharves 8,500 4,041 5,415 Community Development 18,000 17,310 7,687 385,100 286,566 238,463 Public works general Salaries 151,680 152,775 142,040 Administrative expenses 69,000 46,706 56,005 Special Projects 36,200 37,694 23,733 256,880 237,175 221,778 Other general government services Assessment recovery costs 340,514 340,282 340,514 Regional library 70,437 68,715 68,035 Depreciation 127,635 185,878 175,507 538,586 594,875 584,056 $ 3,809,976 $ 3,372,755 $ 3,358,133 26 See accompanying notes and schedules to the consolidated financial statements. Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2018 2017 Budget Actual Actual Protective services Police services $ 1,821,679 $ 1,802,146 $ 1,742,347 Legal prosecution services 5,000 10,987 7,725 By-law enforcement 35,156 12,810 18,185 Animal control 76,800 63,626 67,440 Emergency measures 39,614 33,097 45,010 1,978,249 1,922,666 1,880,707 Fire services Fire coordinator/advisory 92,542 59,891 101,807 Fire protection agreement 242,463 246,304 153,761 Fire rescue boat 12,145 16,493 12,129 347,150 322,688 267,697 Building/fire inspections Salaries 245,050 185,160 196,798 Administrative expenses 86,105 62,755 53,199 331,155 247,915 249,997 $ 2,656,554 $ 2,493,269 $ 2,398,401 Transportation services Road transport Administration $ 21,380 $ 12,407 $ 17,390 Road and sidewalk maintenance 534,103 399,782 423,508 Street lighting 109,611 106,115 108,995 Debenture interest 9,263 8,975 14,200 Depreciation 228,850 238,268 238,268 $ 903,207 $ 765,547 $ 802,361 Environmental health services Sewage collection and disposal $ 548,280 $ 546,127 $ 482,804 Waste collection and disposal 3,133,436 3,305,105 3,841,440 Recycling project 63,313 50,518 50,991 Debenture interest 151,500 149,360 156,026 Depreciation 1,746,565 1,447,234 1,550,620 $ 5,643,094 $ 5,498,344 $ 6,081,881 Environmental development services Planning and zoning $ 627,694 $ 503,357 $ 501,013 Economic Development 178,194 97,445 103,166 Tourism development 48,000 41,650 50,777 Eco Park 21,488 16,363 14,987 Regional economic network 45,794 45,794 45,794 Wind Turbine 78,890 65,224 75,261 Debenture interest 89,239 89,238 91,801 Depreciation 291,445 298,593 291,953 $ 1,380,744 $ 1,157,664 $ 1,174,752 27 See accompanying notes and schedules to the consolidated financial statements. Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2018 2017 Recreational and cultural services Administration $ 631,676 $ 582,857 $ 634,721 Program expenses 39,700 38,200 36,372 Church Memorial Park 50,000 - - Parks & trails 76,000 23,652 39,188 Heritage properties 500 - - Debenture interest 4,663 4,663 5,949 Forest Heights Community School 36,595 37,275 41,258 After school programs - 17,981 - Depreciation 94,725 106,644 100,818 $ 933,859 $ 811,272 $ 858,306 28 See accompanying notes and schedules to the consolidated financial statements.