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

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Notes to Consolidated Financial StatementsYear ended December 31, 2010(tabular columns in thousands of dollars)(G) Cash equivalents:Cash equivalents include short-term highly liquid investmentswith a term to maturity of 90 days or less at acquisition.(H) Investments:Investments consist of bonds and debentures and are recordedat amortized cost. Discounts and premiums arising on thepurchase of these investments are amortized over the termof the investments. When there has been a loss in value thatis other than a temporary decline in value, the respectiveinvestment is written down to recognize the loss.(I) Net investment in direct financing leases receivable:Investment income related to the municipality’s net investmentin direct financing leases is recognized in a manner that producesa constant rate of return on investment. The investment in theleases is composed of net minimum remaining lease paymentsnet of unearned investment income.(J) Employee future benefits:(i) The town provides certain employee benefits which willrequire funding in future periods. These benefits includelong-term disability, benefits under the Workplace Safetyand Insurance Board (“WSIB”) Act, and extended health anddental benefits for early retirees.The costs of long-term disability, benefits under the WorkplaceSafety and Insurance Board Act and extended health anddental benefits are actuarially determined using management’sbest estimate of salary escalation, earned days accumulatedfor certain employees payable at retirement, health care costtrends, long term inflation rates and discount rates.For self-insured retirement and other employee future benefitsthat vest or accumulate over the periods of service providedby employees, such as service payments, health and dentalbenefits for retirees, the cost is actuarially determined usingthe projected benefits method prorated on service. Under thismethod, the benefit costs are recognized over the expectedaverage service life of the employee group. Any actuarialgains and losses related to the past service of employees areamortized over the expected average remaining service life ofthe employee group.For those self-insured benefit obligations that arise fromspecific events that occur from time to time, such asobligations for workers’ compensation and life insurance andhealth care benefits for those on disability leave, the cost isrecognized immediately in the period the events occur. Anyactuarial gains and losses that are related to these benefits arerecognized immediately in the period they arise.(ii) The costs of multi-employer defined contribution pensionplan benefits, such as the Ontario Municipal EmployeesRetirement System (“OMERS”) pensions, are the employer’scontributions due to the plan in the period.(K) Non-financial assets:Non-financial assets are not available to discharge existingliabilities and are held for use in the provision of services.They have useful lives extending beyond the current year andare not intended for sale in the ordinary course of operations.(i) Tangible capital assetsTangible capital assets are recorded at cost which includesamounts that are directly attributable to acquisition,construction, development or betterment of the asset. The cost,less residual value, of the tangible capital assets, excludingland and landfill sites, are amortized on a straight line basisover their estimated useful lives as follows:AssetYearsLand improvements 3 - 100Buildings 10 - 75Equipment 3 - 19Vehicles 3 - 18Roads network 10 - 100Environmental network 10 - 100Communications and technology network 3 - 8Annual amortization is charged in the year of acquisitionand in the year of disposal. Assets under construction are notamortized until the asset is available for productive use.(ii) Contributions of tangible capital assetsTangible capital assets received as contributions are recordedat their fair value at the date of receipt and also are recordedas revenue.(iii) Natural resourcesNatural resources that have not been purchased are notrecognized as assets in the financial statements.(iv) Works of art and cultural and historic assetsWorks of art and cultural and historic assets are not recordedas assets in these financial statements.(v) Interest capitalizationThe Town does not capitalize interest costs associated with theacquisition or construction of a tangible capital asset.Town of Oakville 2010 Annual Report | 28
(vi) Leased tangible capital assetsLeases which transfer substantially all of the benefits andrisks incidental to ownership of property are accounted for asleased tangible capital assets. All other leases are accountedfor as operating leases and the related payments are charged toexpenses as incurred.(vii) Inventories of suppliesInventories of supplies held for consumption are recorded atthe lower of cost and replacement cost.(L) Use of estimates:The preparation of financial statements requires managementto make estimates and assumptions that affect the reportedamounts of assets and liabilities, and disclosure of contingentassets and liabilities at the date of the financial statements,and the reported amounts of revenues and expenses duringthe period. Significant estimates include assumptions used inestimating provisions for accrued liabilities and in performingactuarial valuations of employee future benefits. In addition,the town’s implementation of Public Sector AccountingStandards – Section PS 3150 has required management tomake estimates of historical cost and useful lives of tangiblecapital assets. Actual results could differ from these estimates.2. Accounts receivableTaxes receivable are reported net of a valuation allowance of$2,042 (2009 - $1,356). There is a valuation allowance forother accounts receivable of $62 (2009 - $52).3. Investments:Investments reported on the consolidated statement of financialposition have market values of $183,410 (2009 - $138,501).4. Investment in Oakville Hydro Corporation:Oakville Hydro Corporation and its wholly owned subsidiaries(collectively, the “corporation”) is owned and controlled by thetown and, as a government business enterprise, is accountedfor on the modified equity basis in these consolidated financialstatements. The corporation serves as the electrical distributionutility for Oakville’s residents and businesses. Other activitiesof the corporation, and its subsidiaries, are to provide energyservices, water heater rental, billing services, street lightingservices, retro-fit multi-residential buildings to individuallymetered units and utility related construction.Town of Oakville 2010 Annual Report | 29
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 18 and 19: assets”, which are not available
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 32 and 33: 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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