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

Notes to Consolidated Financial StatementsYear ended December 31, 2010(tabular columns in thousands of dollars)(C) Cemeteries Act:The Cemeteries Act (Revised), R.S.O., 1990, requires the townto assume ownership and responsibility for the continuing careof pioneer and abandoned cemeteries. However, the CemeteriesAct does not address the issue of funding for this obligation,other than provide that any assets, funds and trust accounts, ifthey exist, become the property of the municipality at the timethe ownership is assumed. This potential liability cannot bequantified at this time and no provision has been included inthese financial statements.(D) Guarantees:In the normal course of business, the town enters into agreementsthat meet the definition of a guarantee.(i) The town, on occasion, has provided indemnities under leaseagreements for the use of various operating facilities. Underthe terms of these agreements the town agrees to indemnify thecounterparties for various items including, but not limited to, allliabilities, loss, suits, and damages arising during, on or after theterm of the agreement. The maximum amount of any potentialfuture payment cannot be reasonably estimated.(ii) The town has purchased errors and omissions insurance tomitigate the costs of any potential future suits or actions. Theterm of the indemnification is not explicitly defined, but islimited to the period over which the indemnified party servedas an officer, an employee, a volunteer or member of Council,board, commission or committee of the town. The maximumamount of any potential future payment cannot be reasonablyestimated.(iii) In the normal course of business, the town, on occasion,has entered into agreements that include indemnities infavour of third parties, such as purchase and sale agreements,confidentiality agreements, engagement letters with advisorsand consultants, outsourcing agreements, leasing contracts,information technology agreements and service agreements. Theseindemnification agreements may require the town to compensatecounterparties for losses incurred by the counterparties as aresult of breaches in representation and regulations or as a resultof litigation claims or statutory sanctions that may be suffered bythe counterparty as a consequence of the transaction. The termsof these indemnities are not explicitly defined and the maximumamount of any potential reimbursement cannot be reasonablyestimated.The nature of these indemnification agreements prevents thetown from making a reasonable estimate of the maximumexposure due to the difficulties in assessing the amount of liabilitywhich stems from the unpredictability of future events and theunlimited coverage offered to counterparties. Historically, thetown has not made significant payments under such or similarindemnification agreements and therefore no amount hasbeen accrued in the financial statements with respect to theseagreements.14. Government transfers:The town recognizes the transfer of government funding asexpenditures or revenues in the period that the events givingrise to the transfer occurred. The government transfers reportedon the Consolidated Statement of Financial Activities are:2010 2009RevenueFederal grantsCanada council $ 230 $ 275Canadian heritage grant 70 70DCH grant 64 56HRDC grant 62 52Community Investment Support - 22Federal gas tax 4,917 5,940Infrastructure Stimulus Funding 6,547 300ICCI Funding 75 -RinC Funding 354 -12,319 6,715Ontario grantsOntario MunicipalPartnership Fund - 305Elderly Person’s Centres 116 116Library – operating grant 182 182Museum – operating grant 58 58COMRIF - -GTA farecard project, Metrolinx& Provincial Trans Expansionfunding Initiative 134 182Ontario Bus Replacement 560 -Investing in Ontario – Recreational 916 1,305RinC Funding 354 -Roads & Bridge Funding - -Infrastructure Ontario MIll 3,169 381Communities in actionand zero tolerance 37 41Ontario arts council 122 105Ontario gas tax 5,450 2,705Miscellaneous 118 32Infrastructure Stimulus Fund 6,548 30017,764 5,712$ 30,083 $ 12,427Town of Oakville 2010 Annual Report |38