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2019-03-31_Report_Consolidated Financial Statements
Consolidated Financial Statements Municipality of the District of Chester March 31, 2019 Contents Page Consolidated Financial Statements Municipality of the District of Chester Management's Responsibility Statement 1 Independent Auditor's Report 2 - 3 Consolidated Statement of Operations 4 Consolidated Statement of Change in Net Financial Assets 5 Consolidated Statement of Financial Position 6 Consolidated Statement of Cash Flows 7 Notes to the Consolidated Financial Statements 8 - 21 Schedules to Consolidated Statement of Operations 22 - 27 Grant Thornton LLP 4th Floor, Dawson Centre 197 Dufferin Street Bridgewater, NS B4V 2G9 T +1 902 543 8115 F +1 902 543 7707 Audit | Tax | Advisory © Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 1 Independent auditor’s report To the Council of the Municipality of the District of Chester Opinion We have audited the consolidated financial statements of Municipality of the District of Chester (“the Municipality”), which comprise the consolidated statement of financial position as at March 31, 2019, and the consolidated statements of operations, change in net financial assets and cash flow for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Municipality of the District of Chester as at March 31, 2019, and its results of operations, its changes in its net financial assets, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the Municipality in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Matter – Supplementary Financial Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The current year’s supplementary information included in the schedules on pages 22 to 27 are presented for purposes of additional analysis and are not a required part of the consolidated financial statements. Such information has been subjected to the auditing procedures applied, only to the extent necessary to express an opinion, in the audit of the consolidated financial statements taken as a whole. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Municipality’s ability to continue as a going concern, disclosing, as applicable, matters related to a Audit | Tax | Advisory © Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 2 going concern and using the going concern basis of accounting unless management either intends to liquidate the Municipality or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Municipality’s financial reporting process. Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Municipality's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Municipality's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Municipality to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Bridgewater, Canada Chartered Professional Accountants September 26, 2019 Licensed Public Accountants Municipality of the District of Chester Consolidated Statement of Operations Year Ended March 31 2019 2019 2018 Page Budget Actual Actual Revenue Taxes 22 $ 11,861,116 $ 11,915,316 $ 11,514,147 Grants in lieu of taxes 23 173,540 185,683 173,355 Sales of services 23 4,547,531 2,749,377 4,119,031 Other revenue from own sources 23 608,365 859,391 627,736 Transfers from Federal and Provincial governments and agencies Unconditional 24 76,038 108,468 102,693 Conditional 24 92,700 32,542 41,831 Grants for capital projects 24 616,150 937,728 3,590,352 Interest 13,356 413,530 194,135 Gain on disposal of assets - - 6,542 $ 17,988,796 $ 17,202,035 $ 20,369,822 Expenditures General government services 25 $ 3,925,041 $ 3,757,872 $ 3,372,755 Protective services 26 2,655,679 2,551,984 2,493,269 Transportation services 26 865,131 1,074,955 765,547 Environmental health services 26 6,478,031 4,322,031 5,498,344 Environmental development services 26 1,378,771 1,306,890 1,157,664 Recreational and cultural services 27 872,795 826,074 811,272 Loss on disposal of assets - 15,200 - $ 16,175,448 $ 13,855,006 $ 14,098,851 Annual surplus $ 1,813,348 $ 3,347,029 $ 6,270,971 Accumulated surplus, beginning of the year 28,723,945 22,452,974 Accumulated surplus, end of the year $ 32,070,974 $28,723,945 See accompanying notes and schedules to the consolidated financial statements. 4 Municipality of the District of Chester Consolidated Statement of Change in Net Financial Assets Year Ended March 31 2019 2019 2018 Budget Actual Actual Annual surplus $ 1,813,348 $ 3,347,029 $6,270,971 Acquisition of tangible capital assets (8,420,625) (1,527,017) (7,112,698) Write off of tangible capital assets - 24,200 34,000 Amortization of tangible capital assets 2,489,220 2,425,600 2,276,617 (4,118,057) 4,269,812 1,468,890 (Increase) decrease in other non-financial assets - (34,154) 10,259 Decrease (increase) in prepaid expense - 11,354 (155,272) (Decrease) increase in net assets (4,118,057) 4,247,012 1,323,877 Net financial assets (debt) Beginning of year 2,833,679 2,833,679 1,509,802 End of year $ (1,284,378) $ 7,080,691 $2,833,679 See accompanying notes and schedules to the consolidated financial statements. 5 Municipality of the District of Chester Consolidated Statement of Financial Position March 31 2019 2018 Financial Assets Cash and cash equivalents (Note 4)$ 23,039,527 $ 17,680,825 Receivables (Note 5)2,577,512 4,607,684 25,617,039 22,288,509 Liabilities Short term borrowings - 2,592,000 Payables and accruals 2,700,176 1,481,351 Employee future benefits (Note 6)232,562 240,538 Deferred revenue (Note 7)400,794 351,251 Tax sale surplus (Note 8)197,258 231,629 Landfill closure costs liability (Note 14)5,950,740 7,003,514 Long term debt (Note 9)9,054,818 7,554,547 18,536,348 19,454,830 NET ASSETS 7,080,691 2,833,679 Non-Financial Assets Tangible capital assets (Note 10)24,782,989 25,705,772 Prepaids 173,140 184,494 Other 34,154 - 24,990,283 25,890,266 ACCUMULATED SURPLUS (Note 11) $ 32,070,974 $ 28,723,945 Commitments (Note 15) Contingencies (Note 20) On behalf of the Municipality of the District of Chester Warden Clerk See accompanying notes and schedules to the consolidated financial statements. 6 Municipality of the District of Chester Consolidated Statement of Cash Flows Year Ended March 31 2019 2018 Cash and cash equivalents provided by (used): Operating activities Annual surplus $ 3,347,029 $6,270,971 Amortization of tangible capital assets 2,425,600 2,276,617 Write off of tangible capital assets 24,200 34,000 5,796,829 8,581,588 Changes in non-cash working capital Decrease (increase) in receivables 2,030,172 (1,216,011) Decrease (increase) in prepaid expenses 11,354 (155,272) (Increase) decrease in other non-financial assets (34,154) 10,259 Increase in payables 1,218,825 90,331 Decrease in employee future benefits (7,976) (7,795) Increase in deferred revenue 49,543 47,563 (Decrease) increase in tax sale surplus (34,371) 50,530 (Decrease) increase in landfill closure costs liability (1,052,774) 730,234 7,977,448 8,131,427 Capital transactions Acquisition of tangible capital assets (1,527,017) (7,112,698) (1,527,017) (7,112,698) Financing activities Proceeds from issuance of short term debt ‐ 2,592,000 Proceeds from issuance of long term debt 2,938,104 - Repayment of short term debt (2,592,000) - Repayment of long term debt (1,437,833) (1,437,833) (1,091,729)1,154,167 Increase in cash and cash equivalents 5,358,702 2,172,896 Cash and cash equivalents Beginning of year 17,680,825 15,507,929 End of year $ 23,039,527 $17,680,825 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, 2019 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, 2019 there are no known contaminated sites identified. 8 Significant aspects of the accounting policies adopted by the Municipality are as follows: The consolidated financial statements reflect the assets, liabilities, revenues, expenditures and changes in accumulated surplus and in financial position of the reporting entity. The reporting entity is comprised of all organizations and enterprises accountable for the administration of their affairs and resources to the Municipality and which are owned or controlled by the Municipality. Interdepartmental and organizational transactions and balances are eliminated. The consolidated entity consists of are the general operating fund, general capital fund, operating reserve fund and the capital reserve fund. These consolidated financial statements have been prepared in accordance with Canadian public sector accounting standards. 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. The Municipality of the District of Chester operates a solid waste landfill site. Landfill closure costs for the landfill site include closure costs at retirement for capping the cells as well as post closure costs for ongoing environmental monitoring. An engineering report measures total capacity, capacity remaining and estimates the closure and post closure costs. These factors together with assumptions for timing of closure, annual inflation and rate of return are used to calculate the net present value of the cost. These costs are recognized as the landfill's capacity is used and this accumulated amount is the amount of the landfill closure cost liability at year end. The factors used in the calculation will be reviewed annual to assess their ongoing appropriateness. Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard. The liability would be recorded net of any expected recoveries. A liability for remediation of contaminated sites would be recognized when all the following criteria are met: Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 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 9 Other revenues are recognized as services or goods are provided, the exchange amount is measurable and collectability of the amount is reasonably assured. Tangible capital assets are recorded at cost, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets is amortized on a straight-line basis over the estimated useful life as follows: Full amount of the annual amortization is charged in the year of acquisition except for wind turbines. Wind turbines are amortized beginning on the date power generation occurs in accordance with the provincial community feed-in tariff (COMFIT) program agreement. Assets under construction are not amortized until the asset is available for productive use. All costs associated with placing an asset in service, including freight, installation costs, site preparation costs, alterations and professional fees are included in the capitalized value. Property tax billings are prepared by the Municipality based on assessment rolls issued by the Property Valuation Services Corporation. Tax rates are established annually by Council during the budget approval process. Tax adjustments as a result of appeals and re- assessment are recorded when the result of the appeals process is known. Grant proceeds from other governments are recognized as revenue when the transfer is authorized and eligibility criteria and stipulations are met. Grant proceeds where eligibility criteria and stipulations are not met are recorded as deferred revenue. The accrual basis of accounting is used for all funds. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are recognized as they are incurred and measurable as a result of legal obligation to pay. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 2. Contributions to boards and commissions Lunenburg County Regional Housing Authority Responsible for 11.00% share of operations in Western Shore Unit Responsible for 11.00% share of operations in New Ross Unit South Shore Regional Library Board - 17.94% share During 2019, the Municipality paid $68,715 (2018 - $68,715) to the South Shore Regional Library Board Regional Economic Network During 2019, the Municipality paid $20,201 (2018 - $45,794) to the Regional Economic Network (final year as wound up in 2019) 3. Contributions to provincial government departments & agencies Corrections contribution Education contribution Assessment services contribution 10 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. The required contribution for corrections is set by the Province, to be recovered from all municipal units. During 2019, the Municipality paid $236,665 (2018 - $234,641) to the province for correction services. The required contribution to the South Shore Regional School Centre for Education is calculated using the mandatory municipal education rate (set by the Minister of Education) times the Municipality's uniform assessment. For 2019 the education tax rate of $.3048 (2018 - $.3048) per $100 of uniform assessment times the uniform assessment of $1,598,816,174 (2018 - $1,524,133,103) for a total amount paid of $4,873,192 (2018 - $4,645,558). 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 2019 $17,433,884 (2018 - $17,176,240). 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 2019 the Municipality paid $347,880 (2018 - $340,281) to the PVSC for assessment services. The Municipality of the District of Chester, along with other municipal units in Lunenburg County, is required to provide funding for the operations of various boards and regional authorities. In addition to any budgeted contributions, the municipal units share in the deficit or surplus of these Boards based on their sharing percentages. The municipal units' share of the surplus or deficit is set up as payable to, or receivable from, the Boards. During 2019, the Municipality incurred costs payable of $21,366 (2018 - $17,105) to the Lunenburg County Regional Housing Authority as its share of operations. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 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 2019 2018 Cash $ 3,218,684 $ 50,670 $ 7,535,354 $ 10,804,708 $ 5,663,425 Short term investments (GICs) - - 12,234,819 12,234,819 12,017,400 $ 3,218,684 $ 50,670 $ 19,770,173 $ 23,039,527 $ 17,680,825 Operating Capital Reserves 2019 2018 Gas tax grant program $ - $ - $ 2,855,508 $ 2,855,508 $1,865,563 Tax sale surplus account 202,335 - - 202,335 182,019 Landfill closure costs - - 7,638,141 7,638,141 7,019,356 Unrestricted cash 3,016,349 50,670 9,276,524 12,343,543 8,613,887 $ 3,218,684 $ 50,670 $ 19,770,173 $ 23,039,527 $ 17,680,825 5. Receivables 2019 2018 Taxes receivable - rate roll:Current 2017 Year 2018 and Prior Total Total Balance, beginning of year $- $ 828,651 $ 490,240 $ 1,318,891 $ 1,354,097 Collections for other governments 1,610,568 - - 1,610,568 1,582,531 Current year's levy 15,288,973 - - 15,288,973 14,702,415 16,899,541 828,651 490,240 18,218,432 17,639,043 Deduct Current year's collections 15,796,009 596,082 385,093 16,777,184 16,048,080 Reduced taxes 290,225 - - 290,225 272,072 Write-offs 12,165 - - 12,165 - 16,098,399 596,082 385,093 17,079,574 16,320,152 Balance, end of year $801,142 $232,569 $105,147 1,138,858 1,318,891 Allowance for uncollectible taxes & unresolved assessments (63,129) (66,829) Allowance for other doubtful accounts (30,032) (35,849) Taxes receivable - interest 98,284 113,773 Billing receivable - water utility (42) (42) HST receivable 183,191 209,869 Due from Provincial Government 738,294 1,331,386 Due from (to) other local governments - 984,144 Landfill receivable 422,793 544,575 Water supply upgrade loans 45,996 - Other 43,299 207,766 Receivables, end of year $ 2,577,512 $4,607,684 11 Included in the cash and cash equivalents are restricted amounts. The gas tax grant program funds are restricted to eligible capital projects. The landfill closure funds are restricted by provincial regulations to fund landfill closure costs. The tax sale surplus funds are restricted as they are required to be held as described in Note 8. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 6. Employee future benefits - non-vested sick leave benefits The Municipality has provided non-vested sick leave benefits as follows: 2019 2018 Accrued benefit liability Accrued benefit obligation, beginning of the year $ 240,538 $248,333 Current service cost for the year 9,316 8,854 Interest cost for the year 3,656 3,689 Fiscal payments for employees (20,948) (20,338) Accrued benefit liability/(asset)232,562 240,538 Unamortized (gains) & losses (84,836) (91,749) Accrued benefit obligation $ 147,726 $148,789 Employee future benefits, non-vested sick leave benefits Current service costs $ 9,316 $ 8,854 Interest cost for the year 3,656 3,689 $ 12,972 $12,543 The significant actuarial assumptions adopted in measuring the municipality's non-vested sick leave benefits are as follows: Discount rate 3.45% Retirement age 65 Rate of compensation increase 3.00% 7. Deferred revenue Funds received with specific eligibility criteria and stipulations that result in a liability, are recorded in deferred revenue until these initial criteria and stipulations have been met. 2019 2018 Prepayment of taxes $ 232,524 $ 187,682 Other deferred revenue 168,270 163,569 Total deferred revenue $ 400,794 $351,251 12 The Municipality of the District of Chester provides non-vested sick leave benefits to eligible Municipal employees. Municipal employees are provided with 15 days per year (1.25 days per month) and are allowed to accumulate unused sick day credits each year, up to the allowable maximum of 150 days. New employees are granted 3 days of sick leave on their date of hire with respect to the proationary period and any unused days can be carried over when the probationary period is completed. Accumulated credits may be used in future years to the extent that the employee's illness or injury exceeds the current year's allocation of credits. No benefit in respect of accumulated sick leave is payable upon termination, retirement, or death. The benefit costs and liabilities related to the plan are included in the consolidated financial statements. The most recent actuarial valuation was received for fiscal period ending March 31, 2019. Actuarial gains are amortized starting the year following the year in which the gain occurs. Amortization is on a straight line basis over the expected average remaining service life (15 years). Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 8. Tax sale surplus account The tax sale surplus account amounts and the years in which they arose are as follows: 2019 2018 1999 $- $ 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 9,944 59,147 2015 1,000 1,000 2016 40,158 43,877 2018 72,071 72,071 2019 19,707 - accumulated interest 3,924 856 $ 197,258 $231,629 9. Long term debt 2019 2018 Capital asset loans $ 32,666 $ 65,332 437,500 500,000 400,000 450,000 429,830 493,614 59,200 118,400 13 Municipal Finance Corporation debenture, bearing interest from 5.095% - 5.480%, repayable in annual instalments of $63,784 plus interest, and a final lump-sum payment of $174,694, maturing in 2024. The original debenture of $1,067,670 was taken out in 2008 for environmental health services use. Municipal Finance Corporation debenture, bearing interest from 4.667% - 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 5.7% - 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 4.715% - 4.83%, repayable in annual instalments of $62,500 plus interest, and a final lump-sum payment of $375,000, maturing in 2021. The original debenture of $1,250,000 was taken out in 2006 for environmental health services use. Municipal Finance Corporation debenture, bearing interest from 4.51% - 4.590%, repayable in annual instalments of $50,000 plus interest, and a final lump-sum payment of $300,000, maturing in 2022. The original debenture of $1,000,000 was taken out in 2007 for environmental health services use. The Municipality 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 was $4,224 of tax sale surplus from the 1998-99 fiscal year that was transferred to the Capital Reserve Fund in the 2018-19 fiscal year. As per provincial accounting rules for municipalities the tax sale surplus is shown as a liability on the consolidated financial statements. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 9. Long term debt (continued)2019 2018 252,000$ 315,000$ 226,250 339,900 2,683,668 3,014,001 1,200,000 1,800,000 395,600 458,300 2,598,104 - 340,000 - $ 9,054,818 $7,554,547 Principal repayments during the next five years are due as follows: 2020 $ 1,663,243 2021 $ 1,788,877 2022 $ 1,063,877 2023 $ 742,677 2024 $ 790,587 Interest expensed on long term debt during the year was $294,719 (2018 - $247,104) 14 All long term debt outstanding at year end has been properly authorized by Service Nova Scotia and the Department of Municipal Affairs. Municipal Finance Corporation debenture, bearing interest from 2.06% - 3.2995%, repayable in annual instalments of $259,810 plus interest, maturing in 2029. The original debenture of $2,598,104 was taken out in 2019 for environmental health. Municipal Finance Corporation debenture, bearing interest from 2.49% - 3.389%, repayable in annual instalments of $34,000 plus interest, maturing in 2029. The original debenture of $340,000 was taken out in 2019 for environmental health. Municipal Finance Corporation debenture, bearing interest from 1.923% - 3.792%, repayable in an installment of $330,333 in 2020 followed by annual instalments of $235,333 plus interest, maturing in 2030. The original debenture of $4,005,000 was taken out in 2015 for environmental health and environmental development services use. Municipal Finance Corporation debenture, bearing interest from 1.342% - 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 1.441% - 2.925%, repayable in annual instalments of $62,700 plus interest to fiscal 2022, then reduced to annual installments of $41,500 plus interest, maturing in 2027. The original debenture of $521,000 was taken out in 2016 for environmental health. Municipal Finance Corporation debenture, bearing interest from 2.792% - 3.480%, repayable in annual instalments of $63,000 plus interest, maturing in 2023. The original debenture of $630,000 was taken out in 2012 for environmental health and general government services use. Municipal Finance Corporation debenture, bearing interest from 2.054% - 2.979%, repayable in annual instalments of $45,250 plus interest , maturing in 2024. The original debenture of $794,500 was taken out in 2013 for environmental health services use. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 10. Tangible capital assets Opening Cost Additions Disposals Transfers Ending Cost Buildings - Plants $ 8,020,270 $ 119,244 $ - $ 3,187,054 $ 11,326,568 Electronic Data Equipment 1,118,233 7,248 (87,644) - 1,037,837 Lagoons 113,516 - - - 113,516 Land 2,674,340 148,332 (4,500) - 2,818,172 Land Improvements 2,156,663 5,553 - - 2,162,216 Landfill 14,507,262 123,107 - - 14,630,369 Machinery and Equipment 3,704,539 83,968 - - 3,788,507 Municipal Buildings 3,227,681 46,744 - - 3,274,425 Sewer Lines 7,385,862 89,318 - - 7,475,180 Sidewalks 2,702,359 10,920 - - 2,713,279 Small Equipment 326,861 18,599 (18,474) - 326,986 Streets, Roads & Curbs 5,977,973 31,250 - - 6,009,223 Vehicles 504,687 81,431 - - 586,118 Wharves 244,469 54,187 - - 298,656 Wind Turbine 5,123,893 - - - 5,123,893 Work in Progress 2,852,024 707,116 - (3,187,054) 372,086 $60,640,632 $1,527,017 $(110,618) $- $62,057,031 Opening Amortization Ending Accumulated During Amortization Accumulated Amortization the Year on Disposals Amortization Buildings - Plants $ 5,367,238 $ 412,561 $ - $ 5,779,799 Electronic Data Equipment 924,529 103,935 (67,944) 960,520 Lagoons 34,056 11,352 - 45,408 Land - - - - Land Improvements 1,153,556 111,086 - 1,264,642 Landfill 11,013,991 805,903 - 11,819,894 Machinery and Equipment 2,664,101 136,124 - 2,800,225 Municipal Buildings 1,292,835 82,276 - 1,375,111 Sewer Lines 5,410,934 148,108 - 5,559,042 Sidewalks 1,444,241 103,664 - 1,547,905 Small Equipment 300,203 12,899 (18,474) 294,628 Streets, Roads & Curbs 3,770,231 176,549 - 3,946,780 Vehicles 403,446 52,804 - 456,250 Wharves 110,778 11,946 - 122,724 Wind Turbines 1,044,721 256,393 - 1,301,114 $34,934,860 $2,425,600 $(86,418) $37,274,042 NBV 2019 NBV 2018 Buildings - Plants $ 5,546,769 $ 2,653,032 Electronic Data Equipment 77,317 193,704 Lagoons 68,108 79,460 Land 2,818,172 2,674,340 Land Improvements 897,574 1,003,107 Landfill 2,810,475 3,493,271 Machinery and Equipment 988,282 1,040,438 Municipal Buildings 1,899,314 1,934,846 Sewer Lines 1,916,138 1,974,928 Sidewalks 1,165,374 1,258,118 Small Equipment 32,358 26,658 Streets, Roads & Curbs 2,062,443 2,207,742 Vehicles 129,868 101,241 Wharves 175,932 133,691 Wind Turbines 3,822,779 4,079,172 Work in Progress 372,086 2,852,024 $ 24,782,989 $25,705,772 15 Municipality of the District of ChesterNotes to the Consolidated Financial StatementsMarch 31, 201911. Accumulated surplusOperatingCapitalReserves20192018Accumulated surplus, beginning of the year $ 1,383,543 $ 15,416,707 $ 11,923,695 $28,723,945 $ 22,452,974 Financial activitiesRevenue (fund transfer):Capital grants and donations - 304,876 2,200 307,076 2,975,541 Interest revenue 96,871 850 315,809 413,530 194,135 Other revenue 16,477,205 2,500 4,224 16,483,929 17,200,146 Transfers between funds (2,308,210) 781,610 1,526,600 - - 14,265,866 1,089,836 1,848,833 17,204,535 20,369,822 ExpendituresTangible capital asset write off - 17,700 - 17,700 - Landfill closure costs - - (1,052,774) (1,052,774) 730,234 Repayment of debt principal 1,437,833 - - 1,437,833 1,437,833 Other expenditures 12,466,980 - - 12,466,980 11,092,000 13,904,813 17,700 (1,052,774) 12,869,739 13,260,067 Annual surplus before PSA adjustments 361,053 1,072,136 2,901,607 4,334,796 7,109,755 Public sector accounting (PSA) standards adjustments:Eliminate (add) expenses to comply with PSA standards Amortization of tangible capital assets (2,425,600) - - (2,425,600) (2,276,617) Repayment of debt principal - 1,437,833 - 1,437,833 1,437,833 (2,425,600) 1,437,833 - (987,767) (838,784) Annual surplus (deficit) (2,064,547) 2,509,969 2,901,607 3,347,029 6,270,971 Accumulated surplus, end of the year$ (681,004) $ 17,926,676 $ 14,825,302 $ 32,070,974 $ 28,723,945 Financial positionCash $ 3,218,684 $ 50,670 $ 19,770,173 $ 23,039,527 $ 17,680,825 Receivables 2,098,630 478,882 - 2,577,512 4,607,684 Due from (to) own funds (2,722,772) 1,716,903 1,005,869 - - 2,594,542 2,246,455 20,776,042 25,617,039 22,288,509 Short term borrowings - - - - 2,592,000 Other liabilities (payables and accruals) 3,098,746 31,250 - 3,129,996 1,953,518 Deferred revenue 384,094 16,700 - 400,794 351,251 Landfill closure cost liability - - 5,950,740 5,950,740 7,003,514 Long term debt - 9,054,818 - 9,054,818 7,554,547 3,482,840 9,102,768 5,950,740 18,536,348 19,454,830 Net (debt) financial assets (888,298) (6,856,313) 14,825,302 7,080,691 2,833,679 Non-financial assets 207,294 24,782,989 - 24,990,283 25,890,266 Accumulated surplus $ (681,004) $ 17,926,676 $ 14,825,302 $ 32,070,974 $ 28,723,945 16 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 12. School Capital Fund 13. Pension plans Defined Contribution Plan 14. Landfill closure costs liability 1.56% 2.40% Year of closure and capping 2039-40 Post closure period 20 years 17 Annual inflation applied to the costs in the August 2019 engineering report Rate of return Signficant assumptions include: On January 31, 1982, the Municipality of the District of Chester joined with the other Municipalities and Towns of Lunenburg County to form the South Shore District School Board, now the South Shore Regional Centre for Education. Under the agreement, all school buildings on hand at December 31, 1981, will remain assets of the Municipality, but will be under the control of the Regional Centre until such time as the Regional Centre no longer requires the asset for school purposes. At that time, control will revert to the Municipality. Since the Municipality does not have control over these assets at this time, they are not included in the financial statements of the Municipality. When control reverts back to the Municipality, they will be added as donated assets. 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 $169,922 (2018 - $163,878) to the pension plan. Landfill closure costs include estimated expenses for capping the cell sites as well as ongoing environmental monitoring and care. The liability for closure costs is accrued each year based on the total tonnes of garbage delivered to the landfill compared to the estimated tonnes of landfill capacity. The estimated total of landfill closure and post closure costs at the start of the second generation landfill was $9,835,350. Management continued the process of revisiting the landfill closure and post closure costs during the current year. The Municipality uses an engineering report dated August 2019 to update estimated landfill closure and post closure costs. Management will continue to monitor its estimate in future years. Based on information currently available, management estimates that the total landfill closure and post closure costs, calculated using discounted future cash flows, will be $14,634,620 when site capacity is completely utilized. The total liability recognized to date of $5,950,740 (2018- $7,003,514) is based on the capacity of the site utilized to date and present value of the costs. The remaining $8,683,880 will be recognized as the landfill capacity is utilized each year. The estimated remaining capacity of the site is 226,632 tonnes which is currently expected to be filled over the next 20 years. A portion of the total current cost of landfill closure and post-closure care is being transferred into the Special Reserve Fund - Capital Reserve Section in each period the landfill accepts solid waste in the amount equal to the change in the closure liability recognized each year. The total amount for landfill closure costs in reserve is $5,950,740 (2018 - $7,003,514). 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. The factors used in the calculation will be reviewed annual to assess their ongoing appropriateness. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 15. Commitments Solid Waste - Sales of Services Solid Waste - Processing of Waste Agreement Waste Collection 16. Remuneration 2019 2018 Councilor Remuneration Mileage Expenses Total Total Danielle Barkhouse $ 19,290 $ 624 $ 4,949 $ 24,863 $ 24,154 Sharon Church 19,290 609 4,467 24,366 21,772 Tina Connors 19,290 3,112 4,100 26,502 24,168 Abdella Assaff 19,290 386 3,453 23,129 22,209 Floyd Shatford 22,045 1,069 1,477 24,591 28,554 Andre Veinotte - - - - 7,995 Allen Webber 41,060 198 4,856 46,114 48,965 Marshall Hector 19,290 1,784 3,416 24,490 13,686 Staff Tammy Wilson 92,378 1,176 15,212 108,766 159,329 Daniel McDougall 26,873 188 6,389 33,450 $278,806 $9,146 $48,319 $ 336,271 $350,832 Expenses include remuneration benefits (i.e. CPP, group insurance), conferences, meals, accommodations cell phone, and iPad. 18 The municipality is required by legislation to disclose the remuneration paid to each council member and the chief administrative officer. The Municipality 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 Community Recycling Centre 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 Community Recycling Centre are based on a per tonne charge which is adjusted annually for inflation. The Municipality of the District of Chester collects a host community fee from users based on the number of tonnes delivered to the landfill site. In order to fulfill the terms associated with these arrangements it is estimated the Municipality will not be required to complete construction additional solid waste cells for the duration of the agreements. In August 2016 the Municipality 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. In May 2018, the Municipality signed a contract for waste collection services as a one year extension expiring in March 2020. In April 2019, the Municipality signed an additional contract for waste collection services with a 6 year term of April 1, 2020 to March 2026. Total payments remaining over the next seven years amount to $5,347,258 plus HST per year. Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 17. Compensation Disclosure Act Name Compensation Matt Davidson 108,269$ Cliff Gall 104,440$ Tara Maguire 101,336$ Pam Myra 102,011$ Malcolm Pitman 108,631$ 18. Segmented Information General government services Protective services Transportation servicers This department is responsible for the development and maintenance of roads, sidewalks and street lighting. Environmental health services Environmental development services Recreation and culture services 19 This department is responsible for overseeing police and legal services, animal control, fire protection issuing building permits and fire safety inspections. This department is responsible for the maintenance and operations of waste and sewer services provided to residents and other customers. Its tasks include waste collection, recycling, composting and sewer hook-up. This department is responsible for planning and development within the municipality. Its tasks include operations of the wind turbine, issuing development permits, developing strategies, economic development and planning reports. This department is responsible for promoting and offering recreation opportunities and activities to the Municipality's residents. The Municipality is not required to disclose compensation pursuant to the Public Sector Compensation Disclose Act, but the Municipality has decided, for the purposes of transparency, to disclose compensation in accordance with the financial reporting provisions in section 3 of the Public Sector Disclosure Act dated December 10, 2010. The disclosure includes employees with compensation in excess of $100,000. "Compensation" is defined as the total amount or value of all cash and non-cash salary, wages, payments, allowances, bonuses, commissions and perquisites, other than a pension, pursuant to any arrangement, including an employment contract. 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. 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. Municipality of the District of ChesterNotes to the Consolidated Financial StatementsMarch 31, 201918. Segmented Information (continued)RecreationGeneral Environmental Environmental and Government Protective Transportation Health Development Culture 20192018Services Services Services Services Services Services Consolidated ConsolidatedRevenueTaxes$7,853,452 $321,639 $262,379 $2,808,113 $669,733 $‐ $11,915,316 $ 11,514,147 Grants in lieu of taxes 180,732 4,951 ‐ ‐ ‐ ‐ 185,683 173,355 Sales of Services ‐ 58,054 ‐ 1,831,910 763,946 95,467 2,749,377 4,120,777 Other revenue from own sources 202,550 32,858 10,510 563,578 49,895 ‐ 859,391 627,736 Unconditional transfers fromother governments6,851 ‐ ‐ 101,617 ‐ ‐ 108,468 102,693 Conditional transfers from other governments7,780 4,762 ‐ ‐ ‐ 20,000 32,542 41,831 Grants for capital projects616,150 ‐ ‐ 304,877 ‐ 16,701 937,728 3,590,352 Interest413,530 ‐ ‐ ‐ ‐ ‐ 413,530 194,135 Gain on disposal of capital assets‐ ‐ ‐ ‐ ‐ ‐ 6,542 9,281,045 422,264 272,889 5,610,095 1,483,574 132,168 17,202,035 20,371,568 ExpendituresSalaries and benefits1,776,613 261,424 4,531 910,983 529,741 451,987 3,935,279 3,845,673 Goods and services807,227 2,290,560 825,838 1,613,850 370,046 164,306 6,071,827 6,815,131 Gov't transfers & board contributions416,595 ‐ ‐ ‐ ‐ ‐ 416,595 408,996 Amortization184,463 ‐ 239,758 1,592,615 301,009 107,755 2,425,600 2,276,617 Interest1,979 ‐ 4,828 204,583 81,646 1,683 294,719 254,965 Other570,995 ‐ ‐ ‐ 24,448 100,343 695,786 497,469 Loss on disposal of capital assets15,200 ‐ ‐ ‐ ‐ ‐ 15,200 3,773,072 2,551,984 1,074,955 4,322,031 1,306,890 826,074 13,855,006 14,098,851 Annual surplus $ 5,507,973 $ (2,129,720) $ (802,066) $ 1,288,064 $ 176,684 $ (693,906) $3,347,029 $ 6,272,717 Supplementary InformationAdd BackAmortization$ 184,463 $ ‐ $ 239,758 $ 1,592,615 $ 301,009 $ 107,755 $2,425,600 $2,276,617 LessDebenture Principle Payments(16,000) ‐ (67,198) (1,086,636) (235,333) (32,666) (1,437,833) (1,437,833) Transfers to Reserves(2,565,626) ‐ (156,700) (1,026,535) (925) (3,749,786) (2,788,851) Segment Surplus (Deficit) $ 3,110,810 $ (2,129,720) $ (629,506) $ 1,637,343 $ (784,175) $ (619,742) $585,010 $ 4,322,650 20 Municipality of the District of Chester Notes to the Consolidated Financial Statements March 31, 2019 19. Loan guarantees 20. Contingency 21. Comparative figures 22. Budgeted figures 21 The Municipality has guaranteed a loan for the Hubbard's and District Fire Commission for the purchase of a fire vehicle in the amount of $350,000. The balance outstanding as of March 31, 2019 is $28,698 (2018 - $58,284). Interest is calculated at prime and principal payments are $29,586 per year and final year payment of $28,698. The loan matures on June 4, 2019. 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 $5,200,000. Certain of the 2019 comparative figures have been reclassified to conform to the financial statement presentation adopted for the current year. 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. Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2019 2019 2018 Budget Actual Actual REVENUE Taxes Residential assessable property $ 10,131,523 $ 10,144,235 $ 9,960,730 Commercial based taxable assessments 1,391,839 1,407,429 1,379,092 Resource Taxable assessments 308,091 305,300 306,473 Non-profit acreage 4,360 4,360 4,360 Forest property tax (less than 50,000 acres) 27,351 26,930 27,323 Forest property tax (50,000 acres or more) 8,590 8,588 8,590 348,392 345,178 346,746 Area rates Protective services 291,039 321,639 283,593 Transportation services 253,536 262,379 249,611 Environmental Health services 2,809,988 2,808,113 2,482,643 3,354,563 3,392,131 3,015,847 Business property Based on revenue (Aliant) 49,067 54,633 48,870 NS Power HST rebate 67,783 43,023 49,513 116,850 97,656 98,383 Deed Transfer tax 984,704 1,000,830 963,953 Wind Farm Developer tax 663,102 669,733 663,102 Transfers and collections for other governments Collection - other governments 1,611,513 1,610,568 1,582,531 Transfers to local fire commissions (1,611,513) (1,621,221) (1,598,933) - (10,653) (16,402) 16,990,973 17,046,539 16,411,451 Education mandatory contribution (Note 3) (4,873,192) (4,873,192) (4,645,558) Correction services (Note 3) (236,665) (236,665) (234,641) Regional Housing Authority (Note 2) (20,000) (21,366) (17,105) (5,129,857) (5,131,223) (4,897,304) $11,861,116 $ 11,915,316 $11,514,147 See accompanying notes and schedules to the consolidated financial statements. 22 Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2019 2019 2018 Budget Actual Actual Grants in lieu of taxes Federal government $ 50,047 $ 55,895 $ 50,145 Provincial government Real property 58,003 58,841 58,101 Crown timberland 32,381 32,381 32,381 Fire protection 5,014 4,951 5,010 Conservation 7,000 12,520 6,814 152,445 164,588 152,451 Provincial government agencies NS Power Incorporated 21,095 21,095 20,904 $ 173,540 $ 185,683 $ 173,355 Sales of services Animal control fees - other local govt $ 33,000 $ 33,358 $ 33,358 Waste Collection fees - other local governments 3,569,187 3,895,262 3,238,676 Waste Collection fees - surplus repayment - (2,063,352) (163,182) Planning services - other local governments 47,491 48,275 47,485 Building/fire inspection services - other local gov't 21,900 22,162 22,160 Recreation and cultural services 83,950 67,448 77,237 FHCS 29,500 28,019 26,271 REMO - other local governments 2,503 2,534 2,533 Wind Energy 760,000 715,671 834,493 $ 4,547,531 $ 2,749,377 $ 4,119,031 Other revenue from own sources Administrative services $ 199,449 $ 202,550 $ 218,047 Transportation services 9,414 10,510 9,490 Building inspection services 23,000 30,074 25,655 Animal control services 1,925 2,784 3,269 Sewer hookup services 500 8,244 8,014 Solid waste & disposal services 328,823 555,334 297,214 Planning services 20,254 20,374 41,783 Industrial park services 25,000 29,521 24,264 $ 608,365 $ 859,391 $ 627,736 See accompanying notes and schedules to the consolidated financial statements. 23 Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2019 2019 2018 Budget Actual Actual Unconditional transfers from Federal and Provincial governments and agencies Provincial government Service Nova Scotia Assessment Act - farm acreage $ 6,851 $ 6,851 $ 6,783 Recycling projects 69,187 101,617 95,910 $ 76,038 $ 108,468 $ 102,693 Conditional transfers from Federal and Provincial governments and agencies Federal government Employment grants $ 3,000 $ 3,080 $ 3,041 Provincial government Emergency measures 4,500 4,762 4,767 Recreation 69,200 20,000 34,023 Other agencies 16,000 4,700 - $ 92,700 $ 32,542 $ 41,831 Grants for Capital Projects Infrastructure grant $ - $ 292,046 $ 1,947,952 Gas tax grant 616,150 616,150 592,539 PCAP grant - - 17,417 SNSMR grant - 16,701 22,272 Local government - - 26,481 Local agencies grant - 12,831 - Donated property - - 983,691 $ 616,150 $ 937,728 $ 3,590,352 See accompanying notes and schedules to the consolidated financial statements. 24 Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2019 2019 2018 Budget Actual Actual EXPENDITURES General government services Legislative Council/committee remuneration $ 162,180 $ 165,916 $ 157,849 Administrative expenses 86,131 85,983 72,662 Grants to organizations 271,020 280,769 158,928 Elections - - 3,647 519,331 532,668 393,086 CAO/Clerk administrative Administration salaries 472,416 445,711 405,883 Administrative expenses 224,466 122,085 116,156 Town crier 500 - - Surveys/appraisals 2,000 - 2,346 Newsletter/promotions 23,300 10,126 10,154 Joint occupational health and safety 20,000 - 968 Health & wellness 66,184 76,650 69,335 808,866 654,572 604,842 Finance/property tax administrative Administration salaries 363,382 357,968 346,663 Administrative expenses 216,984 184,261 167,830 Auditor services 40,000 45,261 39,964 Property tax administration 326,781 338,366 305,580 947,147 925,856 860,037 Information services administrative Administration salaries 239,524 230,433 224,792 Administrative expenses 222,027 185,399 168,653 Debenture interest 2,301 1,980 2,729 463,852 417,812 396,174 Municipal property services Salaries 107,841 122,979 98,822 Administrative expenses 46,143 55,981 43,600 Property services 198,350 170,325 122,793 Wharves 7,000 3,825 4,041 Community Development 14,000 10,622 17,310 373,334 363,732 286,566 Public works general Salaries 160,366 149,460 152,775 Administrative expenses 62,630 51,569 46,706 Special Projects 44,985 61,145 37,694 267,981 262,174 237,175 Other general government services Assessment recovery costs 347,880 347,880 340,282 Regional library 69,015 68,715 68,715 Amortization 127,635 184,463 185,878 544,530 601,058 594,875 $ 3,925,041 $ 3,757,872 $ 3,372,755 See accompanying notes and schedules to the consolidated financial statements. 25 Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2019 2019 2018 Budget Actual Actual Protective services Police services $ 1,831,977 $ 1,822,882 $ 1,802,146 Legal prosecution services 5,000 7,725 10,987 By-law enforcement 48,664 31,735 12,810 Animal control 70,400 63,580 63,626 Emergency measures 41,579 28,977 33,097 1,997,620 1,954,899 1,922,666 Fire services Fire coordinator/advisory 120,946 62,430 59,891 Fire protection agreement 248,718 288,669 246,304 Fire rescue boat 16,529 13,975 16,493 386,193 365,074 322,688 Building/fire inspections Salaries 186,792 168,061 185,160 Administrative expenses 85,074 63,950 62,755 271,866 232,011 247,915 $ 2,655,679 $ 2,551,984 $ 2,493,269 Transportation services Road transport Administration $ 17,602 $ 7,092 $ 12,407 Road and sidewalk maintenance 502,391 717,018 399,782 Street lighting 109,611 106,259 106,115 Debenture interest 6,677 4,828 8,975 Amortization 228,850 239,758 238,268 $ 865,131 $ 1,074,955 $ 765,547 Environmental health services Sewage collection and disposal $ 577,352 $ 571,204 $ 546,127 Waste collection and disposal 3,907,770 1,924,337 3,305,105 Recycling project 58,603 49,750 50,518 Debenture interest 187,741 184,124 149,360 Amortization 1,746,565 1,592,616 1,447,234 $ 6,478,031 $ 4,322,031 $ 5,498,344 Environmental development services Planning and zoning $ 565,333 $ 471,805 $ 503,357 Economic Development 207,778 182,377 97,445 Tourism development 64,000 58,030 41,650 Eco Park 26,877 116,951 16,363 Regional economic network 45,794 20,201 45,794 Wind Turbine 93,250 74,872 65,224 Debenture interest 84,294 81,645 89,238 Amortization 291,445 301,009 298,593 $ 1,378,771 $ 1,306,890 $ 1,157,664 See accompanying notes and schedules to the consolidated financial statements. 26 Municipality of the District of Chester Schedules to Consolidated Statement of Operations Year Ended March 31 2019 2019 2018 Budget Actual Actual Recreational and cultural services Administration $ 625,852 $ 584,543 $ 582,857 Program expenses 39,700 33,289 38,200 Church Memorial Park 50,000 50,000 - Parks & trails - - 23,652 Heritage properties 500 - - Debenture interest 2,809 1,683 4,663 Forest Heights Community School 36,509 31,625 37,275 After school programs 22,700 17,179 17,981 Amortization 94,725 107,755 106,644 $ 872,795 $ 826,074 $ 811,272 See accompanying notes and schedules to the consolidated financial statements. 27