Though unaudited, financial figures for 2009 provide some indication of Wellington North Township’s financial position.
In the absence of finance chairman Dan Yake, Treasurer John Jeffery presented the statements to council.
Jeffery said the statement for the year ending Dec. 31, 2009 has yet to be audited. The reason is that it is not yet in compliance with the CICA Public Sector Handbook, which requires recognition of all tangible capital assets with that report.
He explained “Tangible capital assets” are defined as all of the equipment, vehicles, buildings, and property owned by the township.
He said, “On the surface, that might sound like a fairly easy, if time consuming process – however, it’s not easy, but it is time consuming.”
In order to comply with the new reporting criteria it is necessary to take inventory of all of the tangible capital assets of the township, establish the historical cost of those assets, and calculate the current net book value of those assets.
He added Wellington North is not the only municipality facing this difficulty. “We’re not alone in this, but it is somewhat embarrassing.”
He stressed again, that except for the recognition of tangible capital assets the information presented is no different than it would have been had the asset information been included.
Consolidated Fund Position
Jeffery said that due to significant capital expenditures in the water department, that department has been carrying a large deficit for several years.
The deficit has been offset by a large surplus in the sewage department. The rates charged for sewage include a capital component, but over the years capital expenditures have not been significant relative to the water system creating the surplus noted.
He said in 2009 there were significant sewage capital ex–penditures using a lot of that surplus.
Some of those projects were a result of grant monies received by the municipality, which triggered some of the expenditures earlier than they might have been, Jeffery said.
However, Jeffery said the general operating fund is ending the year with a surplus of $384,377, which is higher than in 2008 ($347,932).
He again stressed that number does not accumulate, and surpluses from a previous year are supposed to be recorded as a revenue for the current year.
Grants
Jeffery said during 2009 the township was successful in getting significant funding from the federal and provincial governments under the Build Canada Fund, the Infrastructure Stimulus Fund, and the Rec–reational Infrastructure Canada Fund.
All those grants were based on one third funding by each level of government.
Those projects were started in 2009 and will be completed in 2010.
In addition to those grants received from the province late in 2008 were used in 2009 to complete the funding of the “Big Dig” and to finance work done in 2009 on resurfacing rural roads.
“While successful, that one third became a bit of a problem for us, and that problem continues into 2010 – but it’s difficult to turn down two thirds dollars,” Jeffery said.
He added that as a result, those capital projects were taken on earlier than they otherwise might have been.
Wellington North Power
Jeffery added that in 2009, Wellington North Power (owned 97% by the municipality), incurred a significant profit because of rate increases on the non-energy side.
The Township’s share is $514,320.
Capital Fund
Jeffery said that there was significant amount of rural resurfacing and construction.
That work was funded with provincial grants received in 2008.
He added the first phases of the renovation work at the Arthur community centre were started in 2009.
The parking lot was reconstructed and a new floor was put down in the main hall. The new elevator will be installed in 2010, to provide easier access to the upper floor. That work has received two thirds funding under the Recreational Infrastructure Canada Fund.
In 2009, the fire departments of Wellington North were completely outfitted with new self containing breathing apparatus (SCBA). This purchase was funded from a reserve fund for fire equipment.
The reconstruction of Nor–manby Street was completed in 2009. That work was to support the replacement of the Durham Street Pumping Station, but the Normanby street work had to be done first.
The pumping station work is now being undertaken, Jeff–ery said. He noted there is some leeway with that project.
In 2009 the new sewage treatment plant in Mount Forest was opened. That project received two thirds funding under the Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF).
Long Term Debt
A new debenture was is–sued early in 2009 to fund the contribution received over eight years from Southgate and ongoing efforts of the Mount Forest Sports complex fundraising committee. As funds are received from those two sources they will be applied against the annual payments on the debt.
With respect to debenture payments, Jeffery said in 2009, $456,710 paid off the debt in place prior to 2009.
Those payments will continue over the next few years, Jeffery said.
