Sixteen Mile Sports Complex | Officially opened ... - Oakville

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assets”, which are not available to discharge existingliabilities, but rather are held for use in the provisionof services.The Consolidated Statement of Operations is the municipalequivalent to the private sector’s income statement. Thisstatement presents the source, allocation and use of thetown’s financial resources throughout the reporting periodand reflects the combined operations of the operating fund,non-asset related capital project spending, reserve andreserve funds for the town and its local boards.This schedule no longer reports the costs associatedwith the acquisition of tangible capital assets (formerlyreported as the capital fund), but rather the use of assetsby reporting amortization expenses by function. As well,we no longer report on the change in fund balances butinstead we report only on the annual surplus (revenuesminus expenses) and accumulated surplus, which ties intoConsolidated Statement of Financial Position. Therefore,the annual surplus does not include expenses relating tothe acquisition of tangible capital assets, nor does it reflectthe costs relating to the principal repayment of long termdebt or the receipt of debt proceeds; but it does reflect theuse of assets in service through an amortization expense.The 2010 annual surplus is $67.0 million higher than 2009,which is due to the increase in the town’s investment inOakville Hydro, and grant funding from the Provincial andFederal Governments for tangible assets. Expendituresincreased by $25.4 million.This schedule also reports the 2010 operations againstthe 2010 approved budgets, but similar to the actuals,certain components are not included such as reserve andreserve fund transfers, capital expenses relating to theacquisitions of tangible capital assets and debt principalpayments. With the inclusion of the non financial assets,the financial statement becomes very difficult to compareto the annual and capital budget documents and approvals,as they are presented on a “cash” basis for purposes ofcalculating tax levy, and include a budgeted surplus ofonly $500,000. The projected surplus on a cash basis doesnot include the $37.1 million in amortization of assets, orany gain or loss on sale or disposal of assets. An annualresolution of Council is required under the Municipal Act,Section 284/09 to advise Council of the expenses such asamortization or post-employment liabilities, that the townis not required to include within the annual budget.Financial Planning staff prepare monthly and quarterlyvariance reports which assist management and Council intracking the budget vs. actual in order to monitor the actualsurplus on a cash basis. In accordance with the town’sFinancial Control Policy this report covers all financialmatters including: operating and capital expenditures,asset additions and disposals, reserve, reserve fund andtrust fund balances, investments, capital closures andpurchasing activity greater than $250,000. Non-budgetedtransfers and funding must be requested and approvedthrough these reports.The Consolidated Statement of Change in Net FinancialAssets is intended to provide the user of the financialstatements with more detailed information concerning thenon-financial assets of the Town of Oakville. It providesinformation on the acquisition costs of the tangiblecapital assets as well as the usage of the assets throughamortization expenses.The Consolidated Statement of Cash Flows shows theimpact that all transactions have on the town’s cashposition. It reconciles the annual surplus to the cash andcash equivalents balance reported on the ConsolidatedStatement of Financial Position. It highlights the useTown of Oakville 2010 Annual Report | 16
of cash for operating, capital, investing and financingactivities and provides information that cannot be foundon any other statement particularly relating to long termdebt. From this schedule you can readily see the reasonsfor the significant decrease in cash and cash equivalents.ConclusionAt the end of 2010, the Town of Oakville continuesto report a strong and solid financial position. As withmost municipalities in Ontario, the town is facing manyfinancial challenges and recent economic conditionshave compounded these challenges. The town is fullycompliant with PSAB 3150 – Tangible Capital Assetregulations, with net capital assets with a book valueof $1,330.6 billion and estimated replacement costs of$2.6 billion excluding land values. The funding for therenewal of these assets will place challenges on futurebudgets. Providing services to a growing communitycombined with demand for new and enhanced services,and recent economic issues will place pressure on thetown’s finances while we strive to maintain reasonableand competitive tax rates.In conjunction with PSAB 3150 the town is implementinga comprehensive asset management program. In 2010,staff began utilizing the asset register as the base for thetown’s ten-year financial forecast, which allows the townto evaluate infrastructure investments in light of theirimpact on future budgets. This tool will provide the townwith the information it needs to develop a sustainablefinancing plan for infrastructure renewal, as well asallowed the town to evaluate the impact of reduceddevelopment charge funding resulting from the currenteconomic slowdown and to make necessary modificationsto the timing of growth related capital projects. ThePerformance-Based Program-Based Budgeting (PB2)methodology provides for multi year operatingbudgets which assist in planning the implementationof new or enhanced programs and services, balancedagainst future tax increases. These tools contribute thecurrent sound financial position of the town as shown inthese financial statements.Staff have enhanced the annual report five yearreview section in 2010, which will provide thereaders with more detailed and relevant information,on many financial indicators.There are many contributors to the town’s successand achievements. Thank you to Town Council,commissioners, department heads and staff in all thetown’s departments for all their efforts in ensuringthe town remains in a strong financial position.I especially would like to thank the staff in thetown’s Financial Operations and Financial Planningdepartments. This group of professionals is dedicatedand committed to ensuring the town’s financialaffairs are handled responsibly, with integrity andconsistently go the extra mile.Lynn HorlorDeputy Treasurer andDirector ofFinancial OperationsThe Corporation of theTown of OakvilleDated: June 21, 2011Gord LalondeCommissioner ofCorporate Servicesand TreasurerThe Corporation of theTown of OakvilleIn April 2010, Town Council passed by resolution tocontribute up to $200 million to Halton HealthcareServices (HHS) to fund a new Oakville Hospital. Thiswill require staff to prepare plans and options for thefinal financing of the town’s local share commitmentthat minimizes property taxes and the impact on ourown infrastructure replacement and capital forecast.Discussions with HHS will continue throughout 2011,but the final commitment will not be known until thetenders for the hospital are finalized.Town of Oakville 2010 Annual Report | 17
Page 1 and 2: Sixteen Mile Sports Complex | Offic
Page 3 and 4: 2010 HighlightsTown services span e
Page 6 and 7: Message from the CAOOakville is a c
Page 8 and 9: To enhance ournatural environmentKe
Page 10 and 11: To continuously improve ourprograms
Page 12 and 13: To have programs and services that
Page 14 and 15: Looking aheadKey challengesand acti
Page 16 and 17: Organizational chartMayor and Counc
Page 20 and 21: Comprehensive Financial Managementa
Page 22 and 23: • Council, in adopting the capita
Page 24 and 25: KPMG LLPChartered AccountantsBox 97
Page 26 and 27: Consolidated Statement of Operation
Page 28 and 29: Consolidated Statement of Cash Flow
Page 30 and 31: Notes to Consolidated Financial Sta
Page 46 and 47: Five year review (unaudited)2010 20
Page 48 and 49: Tangible capital assets by class201
Page 50 and 51: Capital operations2010 2009 2008 20
Page 52: Town of OakvilleP.O. Box 310, 1225

Sixteen Mile Sports Complex | Officially opened ... - Oakville

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