Township of Selwyn Comparative Analysis December 31, 2017 Council - PowerPoint PPT Presentation

2. b) Clarity is seeing Potential the path to your Township of Selwyn Comparative Analysis December 31, 2017 Council Presentation May 22, 2018

Independent Auditor’s Report 2. b) In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Township of Selwyn as at December 31, 2017, and the results of its operations and cash flows for the year then ended in accordance with Canadian Public Sector Accounting Standards. 2

2. b) Audit Procedures Review of minutes of council Substantative Testing - Sampling - Analytical review - Management estimates Systems documentation and related control testing - Revenues - Disbursements (corporate credit card testing) - Payroll - Journal entries 3

2. b) Audit Overview – Matters for Communication Audit is complete pending: - Council approval of financial statements - Receipt of signed representation letter - Receipt of legal letters No significant difficulties encountered during the course of our audit procedures: - No changes to initial audit plan - No disagreements or difficulties with management - Excellent cooperation from management and staff Uncorrected audit difference noted: None 4

2. b) Financial Assets as at December 31 st 2017 2016 2015 2014 2013 Cash $ 13,601,454 $ 10,722,491 $ 8,188,268 $ 5,739,310 $ 5,185,970 Investments 4,035,450 3,957,959 3,869,752 3,776,002 3,675,655 Accounts receivable 1,451,607 1,340,560 1,190,531 1,148,903 1,345,643 Taxes receivable 1,966,931 2,190,925 2,292,167 2,083,758 2,308,266 Inventories held for resale 6,913 6,782 6,715 6,063 7,175 $ 21,062,355 $ 18,218,717 $ 15,547,433 $ 12,754,036 $ 12,522,709 5

2. b) Financial Assets as at December 31 st $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2013 2014 2015 2016 2017 Cash Investments Accounts receivable Taxes receivable 6

2. b) Financial Liabilities as at December 31 st 2017 2016 2015 2014 2013 Accounts payable and accrued liabilities 2,137,826 1,495,455 1,787,303 1,329,370 1,687,863 Deferred revenue - obligatory reserve funds 945,372 928,677 681,828 758,079 828,292 Deferred revenue - other 54,661 61,769 51,687 51,671 40,034 Long-term debt 1,216,336 1,496,851 658,619 - - Landfill closure and post-closure liability 350,000 436,261 485,706 483,176 597,120 Employee future benefits payable 1,279,681 1,201,844 879,293 860,469 818,860 $ 5,983,876 $ 5,620,857 $ 4,544,436 $ 3,482,765 $ 3,972,169 7

2. b) Financial Liabilities as at December 31 st $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2013 2014 2015 2016 2017 Accounts payable and accrued liabilities Deferred revenue - obligatory reserve funds Deferred revenue - other Long-term debt Landfill closure and post-closure liability Employee future benefits payable 8

2. b) Non-Financial Assets as at December 31 st 2017 2016 Net Financial Assets $ 15,078,479 $ 12,597,860 Non-Financial Assets Tangible capital assets 57,551,516 57,302,417 $ 72,629,995 $ 69,900,277 9

2. b) Consolidated Statement of Operations 2017 2017 2016 Budget Actual Actual Total Revenues $ 18,201,996 $ 18,568,348 $ 17,947,872 Total Expenses 16,442,427 15,838,630 15,746,165 PSAB Annual surplus 1,759,569 2,729,718 2,201,707 Accumulated Surplus - Beginning 69,900,277 67,698,570 Accumulated Surplus - Ending $ 72,629,995 $ 69,900,277 Budget Reconciliation $ 1,759,569 Amortization of tangible capital assets 2,288,146 Purchase of tangible capital assets (5,540,357) Transfer to reserves and reserve funds 1,745,433 Reduction in unfinanced capital 49,727 Principal repayments of long term debt (280,515) Library board surplus (22,003) Municipal Budget - 10

2. b) Accumulated Surplus and Tangible Capital $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2013 2014 2015 2016 2017 Net Book Value of TCA Accumulated Surplus 11

2. b) Total Revenues, Expenses and Annual Surplus 2013 2014 2015 2016 2017 $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Total Revenues Total Expenses Annual surplus 12

2. b) Financial Activities - Revenues 2017 2017 2016 Budget Actual Actual Property taxation $ 9,950,939 $ 10,004,784 $ 9,806,182 User charges 4,860,015 5,094,035 4,852,876 Province of Ontario 1,293,411 1,324,012 1,356,387 Government of Canada 693,637 651,913 545,108 Development charges earned 306,405 318,037 142,953 Penalties and interest on taxes 350,282 317,641 344,041 Investment income 290,765 255,538 224,937 Other 456,542 602,388 675,388 Total Revenues $ 18,201,996 $ 18,568,348 $ 17,947,872 13

Financial Activities – Revenues 2017 2. b) Province of Ontario Government of Canada 7.1% 3.5% Development charges earned 1.7% User charges 27.4% Penalties and interest on taxes 1.7% Investment income 1.4% Other 3.2% Property taxation 53.9% 14

Financial Activities – Expenses 2. b) 2017 2017 2016 Budget Actual Actual General government $ 1,920,183 $ 1,964,142 $ 1,860,201 Protection services 5,046,611 4,860,942 4,872,182 Transportation services 3,422,597 3,298,487 3,424,928 Environmental services 3,189,643 2,938,505 2,782,185 Recreation and cultural services 2,423,292 2,387,980 2,520,620 Planning and development 440,101 388,574 286,049 Total Expenses $ 16,442,427 $ 15,838,630 $ 15,746,165 15

Financial Activities – Expenses 2017 2. b) Environmental services 18.6% Recreation and cultural services 15% Transportation Planning and development 2.5% services 20.8% General government 12.4% Protection services 30.7% 16

Expenses – Segmented Information 2. b) 2017 2017 2016 Budget Actual Actual Salaries and benefits $ 5,314,365 $ 5,019,639 $ 5,401,973 Interest charges 27,033 27,033 8,944 Materials 3,489,273 3,238,155 3,063,315 Contracted services 4,912,861 4,631,041 4,432,011 Rents and financial 119,713 125,202 144,685 External transfers 291,036 254,955 241,355 Amortization 2,288,146 2,542,605 2,453,882 Total Expenses $ 16,442,427 $ 15,838,630 $ 15,746,165 17

Expenses – Segmented Information 2017 2. b) Amortization 16.1% External transfers 1.6% Salaries and benefits 31.7% Rents and financial 0.8% Interest charges 0.2% Contracted services 29.2% Materials 20.4% 18

2. b) Accumulated Surplus 2017 2016 Surplus (Deficit) Invested in capital assets $ 55,577,177 $ 54,874,108 LS Community Centre and Ennismore arena (124,531) (183,675) Waste management 55,235 15,729 Unfunded landfill closure and post-closure costs (350,000) (436,261) Unfunded employee future benefits (1,279,681) (1,201,844) Unfunded Lakefield secondary plan (213,819) (213,819) Surplus $ 53,664,381 $ 52,854,238 Reserves and Reserve Funds General township reserves 9,207,342 8,381,515 O.P.P. 976,511 943,206 Lakefield - water and sewer 6,627,780 5,900,739 Lakefield policing 1,164,735 926,737 Woodland acres - water and sewer 989,245 893,842 Reserves and Reserve Funds $ 18,965,614 $ 17,046,039 $ 72,629,995 $ 69,900,277 Accumulated Surplus 19

2. b) Reserves and Reserve Funds $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2013 2014 2015 2016 2017 General township reserves O.P.P. Lakefield - water and sewer Lakefield policing Woodland acres - water and sewer 20

Tangible Capital Assets – 2017 Additions 2. b) Water and Sewer $206,118 Roadways $1,047,088 Facilities $754,334 Vehicles and Equipment $784,164 21

2. b) Tangible Capital Asset Additions vs Amortization $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2013 2014 2015 2016 2017 Amortization TCA Additions 22

Tangible Capital Assets – Average Useful Life 2. b) 40% 55% 70% Remaining 77% 92% Amortized 60% 45% 30% 23% 8% 23

2. b) Net Financial Assets – 5 Year Trend $15,078,479 $12,597,860 $11,002,997 $9,271,270 $8,550,540 2013 2014 2015 2016 2017 24

2. b) Clarity is seeing the path to your Potential Comparative Analysis

Township of Selwyn 2. b) Comparative Analysis – Selecting Comparators Criteria - Lower tier municipalities with water and/or sewer systems - Similar number of households and population as reported on the FIR - Similar taxation base - primarily residential Municipality Households Population Selwyn, Township of 8,587 17,060 Severn, Township of 7,406 11,462 Ramara, Township of 6,028 9,490 Gravenhurst, Town of 8,535 12,311 Springwater, Township of 7,530 19,059 Bracebridge, Town of 8,965 14,941 Essa, Township of 6,759 21,083 All data on the following slides, unless otherwise noted, was taken from the 2016 FIRs on the Ministry’s website on January 6th, 2018. 26

2. b) Regular Taxation * - Municipal Comparative ($) $14,000,000 $12,000,000 $10,000,000 Non $8,000,000 Residential $6,000,000 Residential $4,000,000 $2,000,000 $- *Excludes PILs, supps and omits 27

2. b) Municipal Debt to Net Book Value of TCA 26.9% 18.3% 9.1% 7.0% 4.8% 4.1% 2.6% 2.1% 28

2. b) Taxes Receivable to Taxation 12.2% 11.1% 10.6% 9.9% 9.6% 8.3% 7.7% 7.3% 29