2010 Annual Report - City of Vernon

PAGE 65CITY OF VERNON 2010 ANNUAL REPORTHE CORPORATION OF THE CITY OF VERNONNotes to the Consolidated Financial StatementsYear Ended December 31, 2010In the Consolidated Statement of Segmented Operations, segmented financial informationis presented in groups of distinguishable activities in a similar approach to the City’sinternally reported cost centres. These segments are structured in a fashion to assistusers of financial statements in understanding and identifying the resources allocated tosupport commonly recognized functions of the City. Segments are identified primarily byfunction and secondarily by organizational relationship. Revenues are only allocated tosegments when there is a direct cause and effect relationship to the expenses of thosesegments. Revenues that cannot be reasonably allocated in such a manner areunallocated and are considered common to the City as a whole.2. Cash and Cash Equivalents (in thousands of dollars):2010 2009Restricted:Deferred Charges $ 13,677 $ 17,414Statutory Reserves 1,750 2,31715,427 19,731Unrestricted 19,263 18,900$ 34,690 $ 38,631The City has access to an operating line of credit not exceeding $2.0 million. Interest is accrued based onthe Bank of Montreal prime lending rate plus 0.25%. As of December 31, 2010, this line of credit was notbeing utilized (2009 - $0).3. Portfolio Investments:Portfolio investments are comprised of pooled investments in the Municipal Finance Authority Bond Fund.As of December 31, 2010, all such investments represented development cost charges.4. Accounts Receivable (in thousands of dollars):2010 2009Property taxes $ 1,776 $ 1,679Utility billings 5,116 4,829Other governments 8,778 4,163Trade & other receivables 1,593 3,764$ 17,263 $ 14,4355. Municipal Finance Authority – Deposits and Reserves (in thousands of dollars):The City issues most of its long-term debt through the Municipal Finance Authority. As a condition ofthese borrowings, a portion of the debenture proceeds are withheld by the Municipal Finance Authority asa debt reserve fund. The City also executes demand notes in connection with each debenture wherebythe City may be required to pay certain amounts to the Municipal Finance Authority. (See Note 15(b)).The details of the cash deposits withheld from debenture proceeds and demand notes at year end are asfollows: