HomeMy Public PortalAbout2017-03-31_Report_Consolidated Financial Statements Consolidated Financial Statements
Municipality of the District of Chester
March 31, 2017
Contents
Page
Consolidated Financial Statements
Municipality of the District of Chester
Management's Report 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 - 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 www.GrantThornton.ca
2
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, 2017, 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
3
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,
2017, 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.
Emphasis of Matter
We draw attention to Note 2 of the financial statements which describes the prior period
adjustment. Our opinion is not qualified in respect of this matter.
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 22 – 27 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
August 31, 2017 Chartered Professional Accountants Licensed Public Accountants
Municipality of the District of Chester Restated
Consolidated Statement of Operations (Note 2)
Year Ended March 31 2017 2016
Page Budget Actual Actual
Revenue
Taxes 22 $10,854,895 $10,919,846 $10,326,442
Grants in lieu of taxes 23 177,045 173,713 169,480
Sales of services 23 3,701,852 4,567,150 4,026,247
Other revenue from own sources 23 790,027 645,251 825,468
Transfers from Federal and Provincial
governments and agencies
Unconditional 23 75,923 116,865 104,890
Conditional 24 6,500 111,262 289,783
Grants for capital projects 24 1,807,221 679,608 765,849
Interest 8,500 156,375 103,515
$17,421,963 $17,370,070 $16,611,674
Expenditures
General government services 25 $3,516,310 $3,358,133 $3,242,949
Protective services 26 2,591,930 2,398,401 2,419,780
Transportation services 26 841,072 802,361 780,820
Environmental health services 26 5,449,106 6,081,881 6,054,583
Environmental development services 26 1,353,982 1,174,752 1,389,082
Recreational and cultural services 27 957,133 858,306 981,548
Loss on disposal of assets -341,614 -
$14,709,533 $15,015,448 $14,868,762
Annual surplus $2,712,430 $2,354,622 $1,742,912
Accumulated surplus, beginning of the year 20,098,352 18,807,389
Prior period adjustment (Note 2)-(451,949)
Accumulated surplus, beginning of the year restated -18,355,440
Accumulated surplus, end of the year $22,452,974 $20,098,352
See accompanying notes and schedules to the consolidated financial statements.
4
Municipality of the District of Chester Restated
Consolidated Statement of Change in Net Assets (Debt)(Note 2)
Year Ended March 31 2017 2016
Budget Actual Actual
Annual Surplus $2,712,430 $2,354,622 $1,742,912
Acquisition of tangible capital assets (3,562,025) (1,131,374) (2,018,795)
Write off of tangible capital assets - 341,614 132,425
Amortization of tangible capital assets 2,213,961 2,357,166 2,302,931
1,364,366 3,922,028 2,159,473
(Increase) decrease in prepaid expense - 72,767 (59,374)
Increase in net assets 1,364,366 3,994,795 2,100,099
Net assets (debt)
Beginning of year (2,484,993) (2,484,993) (4,585,092)
End of year $(1,120,627) $1,509,802 $(2,484,993)
See accompanying notes and schedules to the consolidated financial statements.
5
Municipality of the District of Chester Restated
Consolidated Statement of Cash Flows (Note 2)
Year Ended March 31 2017 2016
Operating activities
Net revenue $2,354,622 $1,742,912
Amortization 2,357,166 2,302,931
Write off of tangible capital assets 341,614 132,425
5,053,402 4,178,268
Changes in non-cash working capital
Decrease (increase) in receivables (707,220) (302,577)
(Decrease) increase in prepaid expenses 72,767 (59,374)
Decrease (increase) in payables (460,165) 334,717
Increase in employee future benefits 1,327 47,501
(Decrease) increase in deferred revenue 8,900 (40,500)
(Decrease) increase in tax sale surplus (5,380) 70,099
Increase in landfill closure costs 1,411,434 1,409,909
5,375,065 5,638,043
Capital transactions
Acquisition of tangible capital assets (1,131,374) (2,018,795)
(1,131,374) (2,018,795)
Financing activities
Proceeds from issuance of short term debt
Capital asset loans -450,738
Proceeds from issuance of long term debt
Capital asset loans 521,000 3,000,000
Repayment of short term debt
Capital asset loans (450,738) (2,275,980)
Repayment of long term debt
Capital asset loans (1,653,733) (1,434,933)
On behalf of other local governments -(7,695)
(1,583,471)(267,870)
Change in net cash and cash equivalents 2,660,220 3,351,378
Cash and cash equivalents
Beginning of year 12,847,709 9,496,331
End of year $15,507,929 $12,847,709
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, 2017
1. Significant accounting policies
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:
a) Reporting entity
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.
b) Basis of accounting
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.
c) Valuation allowance
The Municipality provides a valuation allowance for estimated losses that will be incurred in collecting receivables
outstanding.
d) Cash and cash equivalents
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.
e) Use of Estimates
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.
f) Landfill Closure Costs
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.
8
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
1. Significant accounting policies (continued)
g) Revenue and Expenditure
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.
Tax and Related Revenue
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.
Government Transfers
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.
Other Revenues
Other revenues are recognized as services or goods are provided, the exchange amount is measurable and
collectibility of the amount is reasonably assured.
h) Tangible Capital Assets
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:
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
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.
9
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
2. Prior Period Adjustment
During the year, management determined that the landfill closure liability had been understated by $1,098,220 in
fiscal 2016. The error was due to omitting the impact of inflation in the determination of the estimated total
liability. A portion of the landfill closure costs are shared with the Valley Region solid Waste Authority and
therefore the landfill revenue and accounts receivable related to this cost sharing arrangement were understated
by $476,210.
As a result of the error, the following accounting balances as at March 31, 2016 have been increased (decreased)
as follows:As previously
reported Adjustment As restated
Statement of financial position
Accounts receivable $2,208,243 $476,210 $2,684,453
Landfill closure liability 3,763,618 1,098,228 4,861,846
Accumulated surplus 20,720,370 (622,018) 20,098,352
Statement of financial activities
Sales of Services - Revenue 3,851,336 174,911 4,026,247
Environmental Health Services - Expense 5,709,604 344,979 6,054,583
Opening Equity 18,807,389 (451,949) 18,355,440
Annual surplus 1,912,981 (170,069) 1,742,912
3. 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 2017, the Municipality incurred costs payable of $16,685 (2016 - $18,362) to the Lunenburg County Regional
Housing Authority as its share of operations.
South Shore Regional Library board - 17.94% interest
During 2017, the Municipality paid $68,035 (2016 - $68,035) to the South Shore Regional Library Board.
Regional Economic Network
During 2017, the Municipality paid $45,794 (2016 - $62,464) to the Regional Economic Network.
4. Contributions to Provincial Government Departments & AgenciesThe 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 2017, the Municipality paid $235,698 (2016 - $236,441) 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 2016/17 the
education tax rate of $.30480 (2015/16 - $.30480) per $100 of uniform assessment times the uniform assessment of
$1,509,852,243 (2015/16 - $1,459,018,213) for a total amount paid of $4,602,030 (2015/16 - $4,447,088).
Assessment Services Contribution
The required contribution for assessment services is calculated first using an amount, set by the Property
Valuation Services Cprporation (PVSC), to be recovered from all municipal units for 2016/17 $17,090,000 (2015/16
- $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 2016/17
the Municipality paid $340,514 (2015/16 - $341,463) to the PVSC for assessment services.
10
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
5. Cash and cash equivalents
The Cash and cash equivalents amount on the Statement of Financial Position includes portfolio investments as follows:
Operating Capital Reserves 2017 2016
Cash $1,736,769 $50,670 $2,121,447 $3,908,886 $3,722,386
Short term investments (GICs)11,599,043 11,599,043 9,125,323 $1,736,769 $50,670 $13,720,490 $15,507,929 $12,847,709
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 2017 2016
Gas tax grant program $1,326,855 $1,326,855 $1,174,527
Tax sale surplus account $181,953 181,953 116,415
Landfill closure costs 4,888,463 4,888,463 4,172,779
Unrestricted cash 1,554,816 50,670 7,505,172 9,110,658 7,383,989 $1,736,769 50,670 13,720,490 $15,507,929 $12,847,709
6. Receivables 2017 2016
Taxes receivable - rate roll:Current 2015
Year 2016 and Prior Total Total
Balance,
beginning of year $- $829,574 $355,648 $1,185,222 $1,243,690
Collections for other
governments 1,455,441 - - 1,455,441 1,482,269
Current year's levy 13,787,526 - - 13,787,526 13,817,059
15,242,967 829,574 355,648 16,428,189 16,543,018
Deduct
Current year's
collections 14,188,297 475,593 166,134 14,830,024 15,093,023
Reduced taxes 234,840 - - 234,840 244,780
Write-offs 3,214 2,695 3,319 9,228 19,993
14,426,351 478,288 169,453 15,074,092 15,357,796
Balance,
end of year $816,616 $351,286 $186,195 1,354,097 1,185,222
Allowance for uncollectible taxes & unresolved assessments (76,073) (75,379)
Allowance for other doubtful accounts (27,230) (17,263)
Taxes receivable - interest 144,344 108,457
Billing receivable - water utility (42) (42)
HST receivable 81,405 176,094
Due from Federal Government - 10,486
Due from Provincial Government 109,384 185,975
Due from other local governments 1,139,979 527,306
Landfill receivable 387,580 238,855
Other 278,229 344,742 Balance, end of year $3,391,673 $2,684,453
Included in other receivables is a loan receivable in the amounts of $34,000 (2016 - $102,000) and $70,800 (2016 - $106,200)
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 4 years through collection of area rates and over the next four
years from the Aspotogan Heritage Trust. 11
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
7. 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:
2017Accrued benefit liability
Accrued benefit obligation, beginning of the year $247,006
Current service cost for the year 14,958
Interest cost for the year 6,115
Amortization of experience gains
Fiscal payments for employees (19,746)
Expected benefit obligation 248,333
Unamortized Actuarial losses (gains)(98,302) Actual benefit obligation $150,031
Employee future benefits, non-vested sick leave benefits
Current service costs $14,958
Interest cost for the year 6,115
Amortization of experience gains - $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).
8. 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.
2017 2016
Prepayment of Taxes $131,804 $102,587
Other deferred revenue 171,884 192,201
Total Deferred Revenue $303,688 $294,788
12
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
9. 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 1996-97 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 ammounts and the years in which they arose are as follows:
2017 2016
1996 $- $854
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 65,484 70,064
Accumulated interest 790 736
$181,099 $186,479
10. Long term debt 2017 2016
Capital asset loans
$97,998 $130,664
562,500 625,000
500,000 550,000
557,398 621,182
177,600 236,800
- 278,600
13
Municipal Finance Corporation debenture, bearing interest from 5.45% - 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 4.44% - 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 4.285% - 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.
Municipal Finance Corporation debenture, bearing interest from 4.565% - 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 3.212% - 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 2.491% - 3.115%, repayable in annual
instalments of $278,600 plus interest, maturing in 2017. The original debenture of $1,393,000 was
taken out in 2011 for environmental health services use.
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
10. Long term debt (continued)
378,000 441,000
453,550 567,200
3,344,334 3,674,667
2,400,000 3,000,000
521,000 -
$8,992,380 $10,125,126
Principal repayments during the next five years are due as follows:
2018 $1,437,833
2019 $1,437,833
2020 $1,369,433
2021 $1,495,067
2022 $770,067
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 $266,298 (2016 - $285,751).
14
Municipal Finance Corporation debenture, bearing interest from 1.330% - 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.
Municipal Finance Corporation debenture, bearing interest from 1.245% - 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 1.011% - 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 2027. The original debenture of $521,000 was taken
out in 2016 for environmental health.
Municipal Finance Corporation debenture, bearing interest from 1.905% - 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.
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
11. Capital assets Opening Cost Additions Disposals Transfers Ending Cost
Buildings - Plants $7,977,310 $20,040 $- $- $7,997,350
Electronic Data Equipment 919,314 178,998 - - 1,098,312
Lagoons 113,516 - - - 113,516
Land 1,696,461 - - - 1,696,461
Land Improvements 1,996,024 121,879 - - 2,117,903
Landfill 11,855,785 - - - 11,855,785
Machinery and Equipment 3,224,554 51,930 - 26,656 3,303,140
Municipal Buildings 2,715,494 138,604 - 173,940 3,028,038
Sewer Lines 7,304,802 49,823 - - 7,354,625
Sidewalks 2,483,122 - - 219,237 2,702,359
Small Equipment 302,986 6,184 - - 309,170
Streets, Roads & Curbs 5,641,442 309,461 - 27,070 5,977,973
Vehicles 392,085 48,770 - - 440,855
Wharves 191,210 - - - 191,210
Wind Turbine 5,123,893 - - - 5,123,893
Work in Progress 964,155 205,685 (341,614) (446,903) 381,323 $52,902,153 $1,131,374 $(341,614) $- $53,691,913
Opening Amortization Ending
Accumulated During Amortization Accumulated
Amortization the Year on Disposals Amortization
Buildings - Plants $4,867,672 $252,320 $- $5,119,992
Electronic Data Equipment 693,481 118,949 - 812,430
Lagoons 11,352 11,352 - 22,704
Land - - -
Land Improvements 935,891 107,689 - 1,043,580
Landfill 9,447,429 797,623 - 10,245,052
Machinery and Equipment 2,341,444 254,832 - 2,596,276
Municipal Buildings 1,135,612 76,116 - 1,211,728
Sewer Lines 5,117,595 147,018 - 5,264,613
Sidewalks 1,233,701 105,270 - 1,338,971
Small Equipment 280,947 7,859 - 288,806
Streets, Roads & Curbs 3,419,633 175,299 - 3,594,932
Vehicles 321,013 38,798 - 359,811
Wharves 93,351 7,648 - 100,999
Wind Turbines 531,935 256,393 - 788,328 $30,431,056 $2,357,166 $- $32,788,222
NBV 2017 NBV 2016
Buildings - Plants $2,877,358 $3,109,638
Electronic Data Equipment 285,882 225,833
Lagoons 90,812 102,164
Land 1,696,461 1,696,461
Land Improvements 1,074,323 1,060,133
Landfill 1,610,733 2,408,356
Machinery and Equipment 706,864 883,110
Municipal Buildings 1,816,310 1,579,882
Sewer Lines 2,090,012 2,187,207
Sidewalks 1,363,388 1,249,421
Small Equipment 20,364 22,039
Streets, Roads & Curbs 2,383,041 2,221,809
Vehicles 81,044 71,072
Wharves 90,211 97,859
Wind Turbines 4,335,565 4,591,958
Work in Progress 381,323 964,155 $20,903,691 $22,471,097
15
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
12. 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 contratual right 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 8 decribes 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 5.
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 instruments 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, 2017, the Municipality has met its objective of
having sufficient liquid resources to meet its current obligations.
16
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
13. Accumulated Surplus Restated
Operating Capital Reserves 2017 2016
Accumulated Surplus, beginning of the year $2,086,886 $9,576,857 $9,095,708 $20,759,451 $18,807,389
Prior period adjustment (153,588) - (507,511) (661,099) -
Accumulated Surplus, beginning restated 1,933,298 9,576,857 8,588,197 20,098,352 18,807,389
Financial activities
Revenue (fund transfer)
Repayment of debt (1,653,733) 1,653,733 - - -
Capital fund acquisitions (1,131,374) 1,131,374 - - -
Other revenue 22,066,622 8,020 142,963 22,217,605 21,614,864
Transfer to reserves (2,740,329) - 2,740,329 - -
16,541,186 2,793,127 2,883,292 22,217,605 21,614,864
Expenditures (transfer)
Capital asset write off - 341,614 - 341,614 132,425
Amortization (2,357,166) 2,357,166 - - -
Other expenditures (incl amortiztion)18,109,934 - 1,411,435 19,521,369 20,191,476
15,752,768 2,698,780 1,411,435 $19,862,983 20,323,901
Annual surplus 788,418 94,347 1,471,857 2,354,622 1,290,963 Accumulated Surplus, end of the year $2,721,716 $9,671,204 $10,060,054 $22,452,974 $20,098,352
Financial position
Cash $1,736,714 $50,670 $13,720,491 $15,507,875 $12,847,709
Receivables 3,391,673 - - 3,391,673 2,684,453
Due to own funds (322,068) (2,290,777) 2,612,845 - -
4,806,319 (2,240,107) 16,333,336 18,899,548 15,532,162
Borrowings, Payables and deferred revenue 2,124,086 2,124,086 3,030,196
Landfill closure costs - - 6,273,280 6,273,280 4,861,846
Long term debt - 8,992,380 - 8,992,380 10,125,113
2,124,086 8,992,380 6,273,280 17,389,746 18,017,155
Net assets (debt)2,682,233 (11,232,487) 10,060,056 1,509,802 (2,484,993)
Non-financial assets 39,481 20,903,691 - 20,943,172 22,583,345
Accumulated Surplus $2,721,714 $9,671,204 $10,060,056 $22,452,974 $20,098,352
14. 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.
15. 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% (2016 - 5%) of
base salary. During the year the Municipality contributed $165,230 (2016 - $135,118) to the pension plan.
17
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
16. 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 $6,755,143.
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 $9,835,350 when site capacity
is completely utilized. The total liability recognized to date of $6,273,280 is based on the capacity of the site utilized
to date. The remaining $3,562,070 will be recognized as the landfill capacity is utilized each year.
The estimated remaining capacity of the site is 255,877 tonnes which is currently expected to be filled over the
next 6 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 $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.
17. 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 (see Note 22).
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 (estimated to be
during Q4 2017) 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. Total payments remaining over the next 2 years amount to $1,445,388 plus HST.
18
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
18. Remuneration
The municipality is required by legislation to disclose the remuneration paid to each council member and the chief administrative officer.
2017 2016
Councilor Remuneration Mileage Expenses Total Total
Brad Armstrong $10,655 $72 $- $10,727 18,773
Danielle Barkhouse 8,041 214 1,488 9,743 -
Sharon Church-Cornelius 18,696 805 4,285 23,786 19,265
Tina Connors 18,696 4,394 1,166 24,256 23,020
Robert Myra 1,558 49 - 1,607 21,174
Abdella Assaff 8,041 534 12 8,587 -
Floyd Shatford 21,058 1,799 58 22,915 23,022
Andre Veinotte 18,696 - 3,441 22,137 18,974
Allen Webber 39,395 653 5,269 45,317 40,282
Staff
Tammy Wilson 139,771 2,736 8,857 151,364 146,392 $284,607 $11,256 $24,576 $320,439 310,902
19. 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 services
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.
19
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2016
19. Segmented Information (continued)
Recreation
General Environmental Environmental and Restated
Government Protective Transportation Health Development Culture 2017 2016
Services Services Services Services Services Services Consolidated Consolidated
Revenue
Taxes $7,700,193 $35,121 $238,035 $2,289,923 $656,574 $- $10,919,846 $10,326,442
Grants in lieu of taxes 168,464 5,249 - - - - 173,713 169,480
Sales of Services 20,637 24,400 - 3,631,534 776,775 113,804 4,567,150 4,026,247
Other revenue from own sources 223,389 27,770 16,237 347,119 30,736 - 645,251 825,468
Unconditional transfers from
other governments 6,736 - - 110,129 - - 116,865 104,890
Conditional transfers from
other governments 111,262 111,262 289,783
Grants for capital projects 679,608 - - - - - 679,608 765,849
Interest 156,375 - - - - - 156,375 103,515
9,066,664 92,540 254,272 6,378,705 1,464,085 113,804 17,370,070 16,611,674
Expenditures
Salaries and benefits 1,502,791 328,197 14,398 920,530 503,146 500,617 3,769,679 3,861,489
Goods and services 765,524 2,070,204 535,495 3,451,927 260,154 204,233 7,287,537 7,366,543
Gov't transfers & board contributions 408,548 - 408,548 409,497
Amortization 175,507 - 238,268 1,550,620 291,953 100,818 2,357,166 2,302,932
Interest 2,992 - 14,200 158,805 91,801 5,949 273,747 308,268
Other 844,384 - - - 27,699 46,688 918,771 620,038
3,699,746 2,398,401 802,361 6,081,882 1,174,753 858,305 15,015,448 14,868,767
Annual surplus $5,366,918 $(2,305,861) $(548,089) $296,823 $289,332 $(744,501) $2,354,622 $1,742,907
Supplementary Information
Add Back
Depreciation $175,507 $- $238,268 $1,550,620 $291,953 $100,818 $2,357,166 $2,302,932
Less
Debenture Principle Payments (16,000) - (67,198) (1,302,536) (235,333) (32,666) (1,653,733) (1,109,601)
Transfers to Reserves (1,153,145) - (1,599,418) (983,992) (5,000) (3,741,555) (1,467,153)
Segment Surplus (Deficit)$4,373,280 $(2,305,861) $(377,019) $(1,054,511) $(638,040) $(681,349) $(683,500) $1,469,085
20
Municipality of the District of Chester
Notes to the Consolidated Financial Statements
March 31, 2017
20. 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, 2017 is $87,870 (2016 - $117,456). Interest is calculated at prime and
principal payments are $29,586 per year. The loan matures on June 4, 2019.
21. 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 four years will be approximately $3,800,000.
22. Subsequent Events
Solid Waste - Landfill cell construction
In April 2017 Municipal Council awarded a tender for the construction of a landfill cell at Kaizer Meadow landfill in the
amount of $2,398,000 plus HST.
23. Comparative figures
Certain of the 2016 comparative figures have been reclassified to conform to the financial statement presentation
adopted for the current year.
24. 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.
21
Municipality of the District of Chester
Schedules to Consolidated Statement
of Operations Restated
Year Ended March 31 2017 2016
REVENUE Budget Actual Actual
Taxes
Residential assessable property $9,516,075 $9,472,450 $9,378,158
Commercial based taxable assessments 1,355,909 1,347,645 1,369,194
Resource
Taxable assessments 296,895 293,024 287,176
Non-profit acreage 4,360 4,360 4,152
Forest property tax (less than
50,000 acres)27,211 27,334 27,439
Forest property tax (50,000 acres
or more)8,590 8,590 8,590
337,056 333,308 327,357
Area rates
Protective services 275,990 277,110 276,820
Transportation services 238,650 238,035 258,209
Environmental Health services 2,329,112 2,289,923 2,207,321
2,843,752 2,805,068 2,742,350
Business property
Based on revenue (Aliant)50,000 49,067 49,128
NS Power HST rebate 74,000 67,783 88,676
124,000 116,850 137,804
Deed Transfer tax 880,000 1,048,655 905,458
Wind Farm Developer tax 656,574 656,574 174,221
Transfers and collections for other governments
Collection - other governments 1,497,036 1,455,441 1,482,269
Transfers to village and local fire commissions (1,497,036) (1,461,732) (1,488,478)
- (6,291) (6,209)
15,713,366 15,774,259 15,028,333
Education mandatory contribution (Note 4)(4,602,030) (4,603,030) (4,447,088)
Correction services (236,441) (235,698) (236,441)
Regional Housing Authority (20,000) (16,685) (18,362)
$10,854,895 $10,919,846 $10,326,442
See accompanying notes and schedules to the consolidated financial statements.
22
Municipality of the District of Chester
Schedules to Consolidated Statement
of Operations Restated
Year Ended March 31 2017 2016
Grants in lieu of taxes
Federal government $60,938 $51,686 $54,396
Provincial government
Real property 54,042 56,596 53,142
Crown timberland 34,176 33,342 33,342
Fire protection 360 5,249 359
Conservation 7,000 6,311 6,004
Provincial government agencies
NS Power Incorporated 20,529 20,529 22,237
$177,045 $173,713 $169,480
Sales of services
General government services - election $- $20,637 -
Waste Collection fees - other local governments 2,801,496 3,631,534 $3,010,489
Planning services - other local governments 46,418 46,921 52,567
Building/fire inspection services - other local gov't 21,662 21,897 21,576
Recreation and cultural services 82,750 82,991 90,134
FHCS 27,400 30,813 28,314
REMO - other local governments 2,476 2,503 2,466
Wind Energy 719,650 729,854 820,701
$3,701,852 $4,567,150 $4,026,247
Other revenue from own sources
Administrative services $162,750 $223,389 $211,728
Transportation services 8,217 16,237 7,721
Building inspection services 15,000 25,206 21,217
Animal control services 4,350 2,564 1,881
Sewer hookup services 500 17,420 8,299
Solid waste & disposal services 571,820 329,699 516,617
Planning services 22,390 25,682 52,951
Industrial park services 5,000 5,054 5,054
$790,027 $645,251 $825,468
Unconditional transfers from
Federal and Provincial governments
and agencies
Provincial government
Service Nova Scotia
Assessment Act - farm acreage $6,736 $6,736 $6,699
Recycling projects 69,187 110,129 98,191
$75,923 $116,865 $104,890
See accompanying notes and schedules to the consolidated financial statements.
23
Municipality of the District of Chester
Schedules to Consolidated Statement
of Operations Restated
Year Ended March 31 2017 2016
Conditional transfers from Federal
and Provincial governments and agencies
Federal government
Employment grants $2,000 $2,996 $1,272
Provincial government
Emergency measures 4,500 4,767 4,760
Recreation - 94,490 156,899
Employment grants - 9,009 -
Other agencies
REN - - 126,852
$6,500 $111,262 $289,783
Grants for Capital Projects
Infrastructure grant $485,000 $- $77,782
Gas tax grant 589,371 589,371 559,359
PCAP grant 581,250 54,237 88,190
SNSMR grant 130,000 18,000 33,018
Local agencies grant 21,600 18,000 7,500
$1,807,221 $679,608 $765,849
See accompanying notes and schedules to the consolidated financial statements.
24
Municipality of the District of Chester
Schedules to Consolidated Statement
of Operations Restated
Year Ended March 31 2017 2016
EXPENDITURES
Budget Actual Actual
General government services
Legislative
Council/committee remuneration $164,844 $150,726 $159,596
Administrative expenses 90,047 64,266 90,498
Grants to organizations 253,921 267,929 206,732
Elections 75,000 57,452 -
583,812 540,373 456,826
CAO/Clerk administrative
Administration salaries 374,906 365,582 367,262
Administrative expenses 128,551 113,790 106,018
Town crier 1,000 - -
Surveys/appraisals 2,000 1,043 4,901
Newsletter/promotions 33,520 10,985 10,627
Joint occupational health and safety 25,000 8,188 7,132
Health & wellness 7,000 4,521 2,541
571,977 504,109 498,481
Finance/property tax administrative
Administration salaries 338,364 343,360 317,291
Administrative expenses 220,235 188,092 159,912
Auditor services 40,000 44,899 40,623
Property tax administration 279,900 275,919 299,726
878,499 852,270 817,552
Information services administrative
Administration salaries 217,195 218,369 175,394
Administrative expenses 210,245 195,723 225,451
Debenture interest 3,122 2,992 3,355
430,562 417,084 404,200
Municipal property services
Salaries 83,751 74,693 78,694
Administrative expenses 44,100 36,006 36,195
Property services 110,976 114,662 164,195
Wharves 8,500 5,415 5,735
Community Development 15,000 7,687 9,052
262,327 238,463 293,871
Public works general
Salaries 154,663 142,040 149,923
Administrative expenses 85,197 56,005 85,049
Special Projects 34,965 23,733 23,297
274,825 221,778 258,269
Other general government services
Assessment recovery costs 340,514 340,514 341,463
Regional library 69,056 68,035 68,035
Depreciation 104,738 175,507 104,252
514,308 584,056 513,750
$3,516,310 $3,358,133 $3,242,949
See accompanying notes and schedules to the consolidated financial statements.
25
Municipality of the District of Chester
Schedules to Consolidated Statement
of Operations Restated
Year Ended March 31 2017 2016
Budget Actual Actual
Protective services
Police services $1,751,980 $1,742,347 $1,673,443
Legal prosecution services 5,000 7,725 5,438
By-law enforcement 35,751 18,185 18,753
Animal control 76,700 67,440 65,661
Emergency measures 41,114 45,010 37,943
1,910,545 1,880,707 1,801,238
Fire services
Fire coordinator/advisory 121,601 101,807 96,081
Fire protection agreement 237,748 153,761 243,844
Fire rescue boat 12,123 12,129 11,457
371,472 267,697 351,382
Building/fire inspections
Salaries 220,904 196,798 202,988
Administrative expenses 89,009 53,199 64,172
309,913 249,997 267,160
$2,591,930 $2,398,401 $2,419,780
Transportation services
Road transport
Administration $26,269 $17,390 $16,914
Road and sidewalk maintenance 450,654 423,508 379,817
Street lighting 107,255 108,995 128,187
Debenture interest 15,284 14,200 15,628
Depreciation 241,610 238,268 240,274
$841,072 $802,361 $780,820
Environmental health services
Sewage collection and disposal $541,831 $482,804 $558,150
Waste collection and disposal 3,178,760 3,841,440 3,690,653
Recycling project 64,572 50,991 44,769
Debenture interest 177,371 156,026 186,617
Depreciation 1,486,572 1,550,620 1,574,394
$5,449,106 $6,081,881 $6,054,583
Environmental development services
Planning and zoning $580,148 $501,013 $573,448
Economic Development 186,975 103,166 155,115
Tourism development 48,000 50,777 43,803
Eco Park 21,082 14,987 10,609
Regional economic network 45,794 45,794 143,415
Wind Turbine 89,741 75,261 78,508
Debenture interest 92,572 91,801 94,896
Depreciation 289,670 291,953 289,288
$1,353,982 $1,174,752 $1,389,082
See accompanying notes and schedules to the consolidated financial statements.
26
Municipality of the District of Chester
Schedules to Consolidated Statement
of Operations Restated
Year Ended March 31 2017 2016
Recreational and cultural services
Administration $657,346 $634,721 $690,805
Program expenses 39,700 36,372 40,262
Church Memorial Park 50,000 - 50,000
Parks & trails 76,000 39,188 68,535
Heritage properties 500 - -
Debenture interest 6,501 5,949 7,772
Forest Heights Community School 35,715 41,258 29,450
Depreciation 91,371 100,818 94,724
$957,133 $858,306 $981,548
See accompanying notes and schedules to the consolidated financial statements.
27