[5:05] I call this meeting to order at 6:00

[5:08] p.m. and confirm all members are

[5:10] present.

[5:12] I'll begin the meeting reading the

[5:14] Township land acknowledgement.

[5:16] Uh the Township of Adjala-Tosorontio is

[5:18] situated on the lands of the Treaty 18

[5:21] being the traditional territory of the

[5:23] Anishinaabe people including the Ojibwa,

[5:25] Ottawa, and Potawatomi Nations

[5:29] collectively known as the Three Fires

[5:31] Confederacy.

[5:33] This land is home to many diverse First

[5:35] Nations, Inuit, and Métis peoples. We

[5:37] acknowledge

[5:38] that indigenous peoples as stewards of

[5:40] the land and we honor their resilience

[5:42] as well as their culture

[5:45] and of our shared respect for the lands,

[5:46] plants, animals, waterways, which

[5:48] sustain us all. We recognize the

[5:51] injustices against indigenous people,

[5:54] and are mindful that the decisions of

[5:56] the government impact our shared land

[5:58] and all of the inhabitants. We commit to

[6:01] reconciliation as a journey,

[6:03] foster indigenous cultural awareness and

[6:06] education opportunities, establish

[6:08] respectful and healthy relations with

[6:10] the indigenous people,

[6:12] and continue to steward the land and its

[6:14] inhabitants,

[6:16] and to cultivate an inclusive community

[6:19] for all.

[6:23] Okay, next item of business is the

[6:26] adoption of the agenda. The

[6:27] recommendation reads that the agenda for

[6:29] the audit committee

[6:31] meeting held on Wednesday, August 5th,

[6:33] be adopted as presented. Can I get a

[6:35] mover?

[6:37] Councillor Borzos, seconder.

[6:40] Councillor Medows, any questions?

[6:43] All in favor?

[6:45] And that is carried.

[6:48] Uh

[6:49] move on to item three, disclosure

[6:52] disclosure of pecuniary interest. Um

[6:55] >> [sighs]

[6:55] » [sighs]

[6:55] >> The next item on the agenda is the

[6:57] » The next item on the agenda is the

[6:57] disclosure this Man, I can't speak

[6:59] today. Disclosure of pecuniary interest.

[7:02] Are there any disclosures of pecuniary

[7:04] interest?

[7:05] Seeing none.

[7:09] Uh

[7:10] item four, adoption of the minutes.

[7:13] Uh the red the recommendation reads that

[7:15] the minutes of the audit committee

[7:17] meeting held on Monday, August 11th,

[7:19] 2025 be adopted as presented. Can I get

[7:22] a mover?

[7:23] Councillor Medows, seconder. Councillor

[7:25] Borzos, any questions on those minutes?

[7:29] Seeing none. All in favor? And that's

[7:32] carried.

[7:34] Move on to item five, which is uh

[7:36] reports and correspondence.

[7:39] Correspondence from Sue Bragg, Baker

[7:41] Tilly SGBLLP,

[7:43] dated December 18th, 2025 regarding the

[7:47] interim audit

[7:48] of December 31st, 2025 financial

[7:52] statements. The recommendation reads

[7:54] that the correspondence from Subrag

[7:58] I guess that was the same thing.

[7:59] Subrag, Baker Tilly, SGB LLP dated

[8:03] December 18th, 2025 regarding interim

[8:06] audit of December 25

[8:08] December 31st, 2025 financial statements

[8:11] be received. Can I get a mover?

[8:14] Councillor Meadows, second by Councillor

[8:15] Borozos. Any questions on that?

[8:18] Seeing none, all in favor.

[8:21] And that is carried.

[8:24] And we'll move to 5.2. The

[8:26] recommendation reads that the draft

[8:28] audited financial statement for the year

[8:30] 2025

[8:32] be received

[8:34] and that the audit committee recommends

[8:36] that council approve the draft audited

[8:38] financial statements for the year of

[8:40] 2025.

[8:42] Can I get a mover?

[8:45] Well, can we get movers and seconders

[8:48] and then discuss it or do you want to

[8:49] discuss it?

[8:50] >> It needs to be on the floor for

[8:51] » It needs to be on the floor for

[8:51] discussion.

[8:52] >> So, movers.

[8:55] Councillor Borozos, second.

[8:58] Seconder.

[8:59] >> Sorry, can we back up?

[9:00] » Sorry, can we back up?

[9:00] >> Sure.

[9:01] » Sure.

[9:01] >> Go back.

[9:01] » Go back.

[9:01] >> Did I go too fast? Too far?

[9:03] » Did I go too fast? Too far?

[9:03] >> from Subrag, should we not be listening

[9:06] » from Subrag, should we not be listening

[9:06] to our correspondence first?

[9:08] >> Well, I believe

[9:10] » Well, I believe

[9:10] >> prior We we already

[9:12] » prior We we already

[9:12] We moved it.

[9:12] >> If I floored it.

[9:13] » If I floored it.

[9:13] >> Put it bring it on the floor.

[9:14] » Put it bring it on the floor.

[9:15] >> Okay, sorry.

[9:16] » Okay, sorry.

[9:16] Did I go too fast?

[9:18] I'm sorry. I'm looking for direction.

[9:20] >> the chair, uh to Councillor Meadows. Uh

[9:22] » the chair, uh to Councillor Meadows. Uh

[9:22] so, the committee did move that item on

[9:23] the floor and did already carry the vote

[9:25] on that item. Uh I would recommend that

[9:27] the current item on the floor is the

[9:29] full financial audited statements. Uh

[9:31] but if uh the committee does have any

[9:33] questions regarding the initial

[9:34] correspondence, those could be asked at

[9:36] this time, too, As that interim audit

[9:38] does affect the final results as well.

[9:40] >> Sorry, my apologies.

[9:44] Um so we will

[9:46] listen to the report from Supra

[9:53] » Good afternoon everyone.

[9:59] So I have a copy of the draft financial

[10:01] statements in front of me.

[10:05] If there are any questions about the

[10:06] interim letter, that's not a problem to

[10:09] discuss as well.

[10:10] Um would you like to discuss the letter

[10:12] first or the financial statements?

[10:14] >> I guess we can do the letter first

[10:15] » I guess we can do the letter first

[10:15] obviously. Sure.

[10:19] » Did you have any specific questions? Do

[10:21] you want me [laughter] just to explain

[10:22] what it was? I can do that.

[10:24] >> I I I just had one question with regards

[10:25] » I I I just had one question with regards

[10:25] to that and I I

[10:28] you pretty much answered my question

[10:30] with regards to the reasoning why

[10:32] it you can't include distribution to

[10:35] third parties.

[10:37] Uh

[10:38] There's just one comment on here. It

[10:40] says the comments and concerns expressed

[10:42] herein do not have a material effect on

[10:44] the municipality's financial statements

[10:46] and as such our opinion and

[10:50] uh

[10:51] in respect to these matters is not

[10:53] qualified. Can you ex- just

[10:56] so people you know laying people

[10:59] will understand what that means.

[11:01] Matters is not qualified.

[11:05] >> So are you referencing the audit report

[11:07] » So are you referencing the audit report

[11:07] or the letter?

[11:08] >> The letter.

[11:09] » The letter.

[11:09] >> Okay. I don't have a copy of the letter

[11:10] » Okay. I don't have a copy of the letter

[11:10] in front of me.

[11:11] >> Can I

[11:12] » Can I

[11:12] Do you want it or do you want to have a

[11:13] look at one of them?

[11:16] Sorry.

[11:18] Right here. It says in this paragraph

[11:20] matters not qualified.

[11:27] » So Baker Tilly National spends a lot of

[11:29] money on lawyers to make sure they get

[11:31] the wording of these letters right. So,

[11:32] I hope I know the answer.

[11:34] Um so

[11:39] Right. Okay. So,

[11:41] so this reference is to the interim

[11:43] letter. So, every year we come and do

[11:45] two audit two visits to the

[11:47] municipality, one in the fall, which is

[11:49] more of a control testing, systems

[11:51] testing

[11:53] focus, and then we come back at year

[11:55] end, of course, to look at all the

[11:56] year-end figures and all the substantial

[11:58] transactions that take part throughout

[12:00] the year.

[12:01] So, this letter was issued as a result

[12:03] of the interim audit. Um and it was a

[12:06] clean letter. We did not identify

[12:08] anything that needed to be brought to

[12:09] the attention of of council or

[12:11] management. Um and so, this paragraph

[12:14] absolutely love. Um [clears throat]

[12:17] So, page two and three in the bottom

[12:19] right-hand corner, it is the standard

[12:22] wording for the independent auditor's

[12:23] report. It is a clean audit opinion,

[12:26] certainly. Um and you'll note that these

[12:30] financial statements are still

[12:31] referenced as drafts until they are

[12:33] approved, of course, by the audit

[12:35] committee and then further to that by by

[12:37] council. Um and we do

[12:41] we do have this on the agenda for

[12:43] council on September 9th. Um and my

[12:46] business partner, Alex Jackson, will be

[12:47] here. I will be um on my way to Nova

[12:50] Scotia

[12:52] that week and he's going to take take

[12:55] the meeting for me.

[12:57] Uh rest assured, he's done lots of these

[12:59] presentations. He also

[13:02] is

[13:04] the engage the partner that has been

[13:06] involved with the detailed review of

[13:07] this file for a number of years.

[13:09] Okay.

[13:10] Um So, then to the statement of

[13:13] financial position, which is page four

[13:15] in the bottom right-hand corner, um the

[13:17] statement of financial position,

[13:19] um and a lot of the figures are pretty

[13:21] similar to last year.

[13:23] You'll notice that taxes receivable are

[13:26] up

[13:27] um, and we've discussed this the last

[13:29] couple of years. It's certainly a trend

[13:31] that we're seeing across, um, several

[13:33] different municipalities in Simcoe

[13:35] County.

[13:36] Um, but also important to note that

[13:39] that these figures, both the 2025 figure

[13:41] of 3.3 million and last year's figure of

[13:44] 2.6 million, are at a point in time.

[13:46] They are as at December 31st. So, by the

[13:49] middle of January or today or 2 months

[13:52] after after year end, the numbers could

[13:54] have could have looked very different,

[13:55] but we definitely are seeing a trend of

[13:58] taxes receivable going up. And and part

[14:00] of that is just due to the fact that,

[14:02] you know, the assessments in the

[14:04] municipality are increasing. So, of

[14:05] course, taxes are increasing, which

[14:07] means taxes receivable are increasing.

[14:10] But, I also do think that there's a bit

[14:11] of an economic impact

[14:13] happening right now.

[14:14] Um, you know, people are finding it a

[14:16] little bit harder to pay in in many

[14:18] areas, um,

[14:19] and certainly the municipalities in

[14:21] Simcoe County I don't think are any

[14:22] exception to that.

[14:25] Um, net financial assets are up about

[14:28] 735,000.

[14:30] You can see that subtotal about halfway

[14:32] down the page, 2.1 million compared to

[14:35] about 1.3 million last year. But, of

[14:37] course, a a lot of that is the increase

[14:40] in taxes receivable. So.

[14:42] Um, for non-financial assets, we have

[14:45] tangible capital assets. You see that

[14:47] there at 58 million, just shy of 59

[14:50] million. That's all the bricks and

[14:52] mortar and roads and infrastructure

[14:54] owned by Adjala-Tosorontio.

[14:56] And important to note that that figure

[14:59] is the historical cost figure amortized

[15:02] over the estimated useful life. So,

[15:04] that, you know, approaching 59 million

[15:06] dollars does not mean what it would cost

[15:08] to replace all of the assets of the

[15:10] municipality. It does not mean what the

[15:12] fair market value of all of the property

[15:14] is.

[15:15] It is based on historical cost amortized

[15:17] over estimated useful life.

[15:20] Um,

[15:20] >> [clears throat]

[15:21] » [clears throat]

[15:21] >> there were about 4.2 million dollars in

[15:23] » there were about 4.2 million dollars in

[15:23] of additions to tangible capital assets

[15:25] during 2025.

[15:27] Those included

[15:29] quite a bit of road work.

[15:31] We vouched several large invoices to

[15:34] Lisbon Paving as an example and they

[15:36] totaled over, you know, almost $1.5

[15:38] million.

[15:39] Um,

[15:41] there was a new fire pumper tanker

[15:43] purchase that was over a million

[15:45] dollars.

[15:46] There was also a new tandem plow truck

[15:48] and that was in my notes at 232,000 but

[15:51] that doesn't seem like enough. It was

[15:52] that just a deposit maybe or would that

[15:54] have been the total?

[15:56] Uh, for a tandem plow truck?

[15:59] >> That,

[16:00] » That,

[16:00] um,

[16:01] it sounds like that was part it was just

[16:02] the truck and not all of the

[16:04] >> Yeah, not all the attachments. Okay.

[16:06] » Yeah, not all the attachments. Okay.

[16:06] Okay, that makes that makes sense. Um,

[16:08] >> Uh, okay. What's the question? Go ahead.

[16:11] » Uh, okay. What's the question? Go ahead.

[16:11] >> Yeah, sorry. When we're talking about

[16:12] » Yeah, sorry. When we're talking about

[16:12] tangible assets and I noticed in

[16:15] uh, page on page 11 here,

[16:17] uh, some of the tangible assets that we

[16:20] have,

[16:21] uh,

[16:22] buildings 30 to 50 years, equipment 5 to

[16:24] 20 years, which is normal.

[16:27] Roads 40 to 85 years, which I have to

[16:30] question.

[16:32] I can live with that.

[16:34] Uh, water and waste water

[16:36] 10 to 100 years. Again, that is way off.

[16:40] Uh,

[16:41] bridges 80 to 100 years. Again, that

[16:43] one's off.

[16:45] Uh, communications,

[16:47] computers and hardwares 3 to 7 years.

[16:50] Yeah, I can I can live with that one.

[16:52] These ones with the 100 years, 85 years,

[16:58] that's [snorts] off.

[17:00] So, what are we doing to rectify that?

[17:04] The

[17:05] we're we're we're we can't have our

[17:07] assets out 100 years.

[17:09] And we're talking a 50-year difference

[17:11] in

[17:12] >> So, when the municipality adopted

[17:15] » So, when the municipality adopted

[17:15] tangible capital assets a number of

[17:16] years ago, it would have set a tangible

[17:19] capital asset policy at that time. These

[17:23] estimated useful lives were adopted

[17:25] then.

[17:27] That's not to say they shouldn't be

[17:28] reviewed again. It is something that

[17:30] we've recommended to a number of our

[17:32] municipal clients.

[17:34] But important to note like that those

[17:37] 100 year amounts, I'd have to delve back

[17:39] into the details of it, but that might

[17:41] be that might be something very small.

[17:45] It may not be It may not be the millions

[17:48] of dollars you have invested that's all

[17:50] being amortized over 100 years. There's

[17:52] a range there, so.

[17:54] >> Well, I guess

[17:56] » Well, I guess

[17:56] the the issue I have with having these

[17:58] assets at those particular dates

[18:01] is uh

[18:04] we don't have 100 year old bridges that

[18:07] are nowadays that are that are going to

[18:09] last 100 years.

[18:12] They're lucky if they're lasting 50

[18:13] years.

[18:15] So, we're we're building a false table

[18:19] and I would like to see it in this this

[18:22] audit statement or whatever that we look

[18:26] at changing those assets because

[18:29] they are wrong and I I I don't want to

[18:31] put this forward this this statement

[18:33] forwards with wrong information in it.

[18:36] >> Well, I don't think the information in

[18:38] » Well, I don't think the information in

[18:38] the statement is is incorrect. I think

[18:40] it is in accordance with the policy that

[18:42] the municipality has adopted to date. I

[18:44] don't disagree with you that it's

[18:46] probably time to look at the tangible

[18:47] capital asset policy and and re-evaluate

[18:51] re-evaluate those useful lives, but I

[18:54] don't think that it um

[18:57] you know, misrepresents the information

[18:59] that's here. It's quite clear to the

[19:00] reader what useful lives are being used

[19:02] for amortization.

[19:04] >> Well, are we not when we go to a bank

[19:05] » Well, are we not when we go to a bank

[19:05] loan and we get a bank loan and they

[19:07] look at our tangible assets and some of

[19:09] let's say some of our assets are

[19:12] uh

[19:13] at 50 years and we got them down as a

[19:16] 100-year uh

[19:18] length of time that we have that asset.

[19:21] So, they're saying, "Well, that asset's

[19:22] 50% of of what?" Meanwhile, it has to be

[19:26] replaced in 3 years.

[19:28] So, that tangible assets

[19:30] uh

[19:31] loaning ability, I mean

[19:35] >> Yeah, I I don't know exactly what they

[19:37] » Yeah, I I don't know exactly what they

[19:37] look at when they when they're

[19:38] evaluating.

[19:39] >> No, but they do. They evaluate They

[19:41] » No, but they do. They evaluate They

[19:41] evaluate your assets. And especially

[19:43] with some of the figures I've seen in

[19:45] here where we're we're on the hook with

[19:48] uh

[19:49] like when we took out the the grant

[19:52] money, we went to to have a a co-signer

[19:56] for for the assets of the the township

[20:00] uh for a 31 I think it was 30 33 million

[20:04] or whatever.

[20:08] » Through the chair, you uh

[20:10] Uh Councilman, are you referring to the

[20:11] the grants?

[20:12] >> Yeah, the grants. Like uh we

[20:15] » Yeah, the grants. Like uh we

[20:15] we had to we got to get that grant, we

[20:18] had to

[20:19] uh

[20:21] get a waiver from the bank saying that

[20:24] it's it's written right in the financial

[20:26] statements here somewhere. Uh when we

[20:28] get to it, I'll I'll point it out. But

[20:30] I'm just saying when we're looking at

[20:32] doing these grant funding projects

[20:35] they look at our tangible assets and if

[20:38] our assets aren't what they're supposed

[20:40] to be then we could be in some big

[20:43] trouble down the road. So, I would just

[20:46] like to see it fixed.

[20:49] » Councilor Borges.

[20:51] >> Yeah, I actually Thank you. Through the

[20:52] » Yeah, I actually Thank you. Through the

[20:52] chair.

[20:53] I was actually going to ask you. I

[20:54] didn't catch the schedule there. But

[20:58] is there a CRA

[21:00] >> Get your mic.

[21:01] » Get your mic.

[21:01] >> Oh.

[21:02] » Oh.

[21:02] Sorry.

[21:03] Uh is there a CRA-approved uh

[21:05] table for these type of things or is it

[21:07] all individually

[21:09] determined by municipalities?

[21:11] >> Yeah, so there is a CRA approved list

[21:14] » Yeah, so there is a CRA approved list

[21:14] that applies to taxable entities, but

[21:16] that doesn't apply to municipalities.

[21:18] >> So, they don't even have a guideline of

[21:20] » So, they don't even have a guideline of

[21:20] sort uh, for

[21:21] >> No.

[21:21] » No.

[21:21] >> uh, capital

[21:22] » uh, capital

[21:22] >> No. No, and and when the ministry

[21:24] » No. No, and and when the ministry

[21:24] brought in the new rules about tangible

[21:26] capital assets, they didn't provide a

[21:28] guideline, either.

[21:31] >> Okay. Thanks.

[21:32] » Okay. Thanks.

[21:32] >> It's entirely up to each municipality,

[21:34] » It's entirely up to each municipality,

[21:34] which

[21:35] >> makes sense.

[21:35] » makes sense.

[21:35] >> difficult.

[21:36] » difficult.

[21:36] >> Councillor Meadows this point, like I

[21:37] » Councillor Meadows this point, like I

[21:37] mean a a

[21:38] hundred even 50 years for a road, like I

[21:40] mean some of our roads don't last 5

[21:42] years.

[21:43] >> [laughter]

[21:43] » [laughter]

[21:43] >> Sorry, I mean that's the reality.

[21:45] » Sorry, I mean that's the reality.

[21:45] >> This is the reality.

[21:46] » This is the reality.

[21:46] >> And and so we could go back and repave

[21:48] » And and so we could go back and repave

[21:48] it year after year after year after

[21:50] year, so

[21:51] uh, yeah, this is definitely I mean

[21:53] maybe maybe for a dirt road a hundred

[21:55] years is okay when horse and buggies

[21:57] were running around, but

[21:58] um, yeah, we need to redo this. Thank

[22:00] you, sorry.

[22:01] >> Yeah.

[22:01] » Yeah.

[22:01] >> Sorry.

[22:03] » Sorry.

[22:03] Through through the chair.

[22:05] >> Yeah, just what I was saying earlier uh,

[22:07] » Yeah, just what I was saying earlier uh,

[22:07] when

[22:08] uh, Brent with regards to uh, letters of

[22:11] uh, it's sorry, it was letters of credit

[22:13] uh, from the banks with regards to the

[22:17] uh, loaned or the grant funding we got

[22:19] as per various developments. The

[22:22] municipality has received letters of

[22:24] credit credit to cover the costs of

[22:26] completing these projects. Letters of

[22:28] credit held by the municipality at

[22:30] December 31st, 2025 were 36 million

[22:35] 259792

[22:38] and 2024 31 million 826325.

[22:43] So, I'm just saying like uh,

[22:45] uh,

[22:46] somebody's

[22:49] banking on us, you know,

[22:52] on our assets that we have in this

[22:53] municipality to make sure our assets

[22:56] are at a tangible rate.

[22:58] >> collateral

[22:58] » collateral

[22:58] >> Yeah. Yeah, it's collateral.

[23:00] » Yeah. Yeah, it's collateral.

[23:01] >> Uh,

[23:02] » Uh,

[23:02] sorry. Uh,

[23:03] uh, through the the chair to Councillor

[23:04] Meadows. The letters of credit are are

[23:06] what we hold uh for for developments.

[23:10] So,

[23:11] so it would probably it would mostly be

[23:13] related, for example, to tribute. We

[23:16] hold securities until they until that

[23:18] development is complete and we sign off.

[23:20] We're We're holding on to secure

[23:22] securities cuz if they don't complete

[23:24] the work, we can draw on these letters

[23:26] of credit.

[23:27] >> Do Yeah, but when we went to the the

[23:31] » Do Yeah, but when we went to the the

[23:31] get the grant funding, we also had to

[23:33] get a

[23:34] uh uh

[23:35] a letter of credit to support the fact

[23:38] that we are we have a $27 million

[23:40] shortfall in that that funding, maybe

[23:43] even up to $32 million.

[23:45] We would have to have some sort of line

[23:47] of credit backing that project if we

[23:50] didn't have any funding to like when we

[23:54] sign that contract, they had to make

[23:56] sure that we were able to

[23:59] >> [sighs]

[23:59] » [sighs]

[23:59] >> have that money at hand

[24:01] » have that money at hand

[24:01] to build to build that infrastructure.

[24:06] » Uh

[24:06] >> They're not going to They're not going

[24:07] » They're not going to They're not going

[24:07] to give you a grant for $65 million not

[24:10] knowing that where the other 27 or 31

[24:12] million is going to be coming from.

[24:14] >> Uh through the chair to Councillor

[24:15] » Uh through the chair to Councillor

[24:15] Meadows. If you're referring to the

[24:18] grants for for everything development,

[24:21] I'm not aware of any requirements for

[24:24] uh

[24:25] >> Well, it's in the contract.

[24:26] » Well, it's in the contract.

[24:26] >> province for

[24:28] » province for

[24:28] >> Uh we they had we had to have some sort

[24:30] » Uh we they had we had to have some sort

[24:30] of collateral to to make up the

[24:32] shortfall.

[24:34] Anyway, I'm I'm I'm

[24:38] I'm just saying, like, that's why I was

[24:43] brought up the assets. Anyway,

[24:45] go ahead.

[24:46] >> Um do you have a question? Okay,

[24:48] » Um do you have a question? Okay,

[24:48] Councillor Borotsik.

[24:48] >> Through the chair,

[24:50] » Through the chair,

[24:50] since you came and

[24:51] visit us, might as well make good use

[24:53] out of your time. No, I I just curious

[24:55] to how would our financial position

[24:58] change if we were to, let's say, right

[25:00] now

[25:01] take that schedule and the larger roads,

[25:05] bridges, and that sort of stuff, we were

[25:07] to cut that in half.

[25:09] How dramatically

[25:10] >> the useful life in half?

[25:11] » the useful life in half?

[25:12] >> Correct.

[25:12] » Correct.

[25:12] >> I mean, it depends on a lot of different

[25:14] » I mean, it depends on a lot of different

[25:15] factors, but it could it could increase,

[25:17] like your annual amortization expense

[25:19] was 2.2 million in in 2025, it could

[25:22] double that in theory.

[25:24] >> And that's kind of, I think,

[25:26] » And that's kind of, I think,

[25:26] the the the point is that

[25:28] maybe I my my understanding of

[25:30] accounting principles is somewhat

[25:31] limited, but what I gather from this is

[25:34] if we were to reduce the amortization

[25:36] time or period, that would actually show

[25:39] that we have

[25:40] less money in the bank.

[25:43] In a way, I mean,

[25:44] it's not going to it's very simplified.

[25:46] >> Yeah, it's not going to show less money

[25:48] » Yeah, it's not going to show less money

[25:48] in the bank because amortization isn't a

[25:50] cash transaction.

[25:52] >> I I didn't mean like

[25:53] » I I didn't mean like

[25:53] in the bank bank. What I meant is our

[25:55] our financial position would be weaker.

[25:57] I guess is what I'm saying, because our

[25:59] total net worth would be a whole lot

[26:01] less or significantly less because the

[26:04] reduced amount of amortization time,

[26:06] which means that perhaps some of the

[26:08] bridges that are still on the books for

[26:10] another 20 years left in them now would

[26:13] be zero, so that would mean their value

[26:15] is $0 as opposed to

[26:18] $200,000. Just using an arbitrary

[26:20] >> The accumulated surplus would definitely

[26:22] » The accumulated surplus would definitely

[26:22] be lower.

[26:23] >> So,

[26:23] » So,

[26:23] >> If your if your

[26:24] » If your if your

[26:25] asset period was reduced.

[26:26] >> And to this point, I think this is a

[26:28] » And to this point, I think this is a

[26:28] very important and good exercise for us

[26:30] to

[26:30] if nothing else comes of today's

[26:32] meeting,

[26:33] this was worth my while just to see that

[26:36] it's there, that schedule is there, and

[26:38] how

[26:39] I guess outdated it is, and how

[26:41] inaccurate it is considering what the

[26:43] reality is out there in terms of

[26:45] usefulness and so on. So, yes, thank you

[26:47] for pointing this out because this is a

[26:49] good thing. We need to change this

[26:52] because I think the next year's audit

[26:55] will be or should be significantly

[26:56] different. Not necessarily for the

[26:58] better for the township, but

[27:00] Thank you.

[27:02] >> Okay, thank you. You're welcome.

[27:05] » Okay, thank you. You're welcome.

[27:05] >> Thank you.

[27:06] » Thank you.

[27:06] >> You too.

[27:08] » You too.

[27:08] It's okay. Teamwork, no?

[27:09] >> And not not to belabor this point, but

[27:12] » And not not to belabor this point, but

[27:12] note three that Counselor Meadows

[27:14] referred to are letters of credit held

[27:16] by the municipality, not debt that we

[27:19] have committed to the bank. So, I just

[27:20] wanted to make sure that we were okay on

[27:22] that.

[27:24] Um so, on the statement of financial

[27:27] position,

[27:28] um I think we had finished talking about

[27:30] tangible capital assets, and the only

[27:32] other item I wanted to mention there is

[27:34] that uh prepaid and expense prepaid

[27:36] expenses and inventory were up. Um as

[27:39] you're all well aware, we changed our

[27:41] insurance during the year, and we're now

[27:43] part of the of the county. Um

[27:46] I don't want to call it the county

[27:47] policy, the county program, county pool

[27:50] is perfect.

[27:51] >> Um and so, we do have um

[27:54] » Um and so, we do have um

[27:54] higher uh prepaid insurance, and you can

[27:56] see that reflected in the figure there.

[27:58] So, just uh keep in mind a couple of

[28:01] figures. So, um

[28:03] that ending balance of $61 million

[28:06] uh

[28:07] in the 2025 column will we will see that

[28:10] number again

[28:11] um as we're going through. So, just keep

[28:13] that number in mind.

[28:14] Um and to that point, on the very next

[28:18] page, the statement of operations, again

[28:20] at the 2025 column, you can see that

[28:23] same $61 million figure there.

[28:26] Uh of course, by uh by design, not by

[28:29] not by accident. Um in terms of revenues

[28:32] and expenses, I I don't think any big

[28:34] surprises here. You can You can see that

[28:36] um taxation revenue was up about a

[28:38] million dollars year over year, largely

[28:40] due to assessment. Um government grants

[28:43] were about $1.4 million dollars than

[28:45] budgeted. Um you know, it's very common

[28:48] to see in [clears throat] municipalities

[28:49] that were pretty conservative when

[28:51] budgeting those grants because you don't

[28:53] always know if they're coming or not.

[28:55] Um, in terms of expenses, um,

[28:58] that $16.6 million

[29:00] figure that you see there for actual

[29:02] 2025 includes the $2.2 million of

[29:05] amortization expense we talked about

[29:07] earlier.

[29:08] Um,

[29:09] salaries and benefits were up about

[29:11] 700,000 and insurance was up as well,

[29:14] um, due to joining the new uh county

[29:16] pool.

[29:18] >> Councillor Medlow?

[29:19] » Councillor Medlow?

[29:19] >> Yeah.

[29:20] » Yeah.

[29:20] >> Thank you.

[29:21] » Thank you.

[29:21] Uh, through the chair.

[29:22] Uh, with regards to I I was talking to

[29:25] uh Mr. Andertuck earlier. Uh, just so

[29:28] that I know the expenses for

[29:30] environmental services, that includes uh

[29:34] water and waste water. Is that correct?

[29:36] >> Yes.

[29:37] » Yes.

[29:37] >> Both?

[29:37] » Both?

[29:37] >> That is correct. And if you look at note

[29:40] » That is correct. And if you look at note

[29:40] 22 on page 22,

[29:43] um,

[29:44] it it explains that it includes uh the

[29:47] service provided uh to the municipality

[29:49] for drinking water and the process and

[29:52] to clean sewage uh and water system

[29:55] meets all provincial standards.

[29:57] >> So, that's the total amount we spent

[29:59] » So, that's the total amount we spent

[29:59] >> Also includes waste disposal, garbage

[30:01] » Also includes waste disposal, garbage

[30:01] pickup as well.

[30:02] >> O&M waste disposal pickup.

[30:04] » O&M waste disposal pickup.

[30:04] >> Yep. Yep.

[30:05] » Yep. Yep.

[30:05] Yep. So, if you look at paragraph D in

[30:07] note 22,

[30:09] >> that that's the count that's the county

[30:10] » that that's the count that's the county

[30:10] service, isn't that?

[30:13] I know we pay for it through our well,

[30:15] the the taxpayers pay for it through

[30:17] their taxes, but uh

[30:21] isn't that correct?

[30:23] >> That's correct. We don't Well, we don't

[30:25] » That's correct. We don't Well, we don't

[30:25] have any um

[30:27] >> We don't have

[30:27] » We don't have

[30:27] >> expenses for

[30:29] » expenses for

[30:29] >> for for that. It's all through our

[30:30] » for for that. It's all through our

[30:30] taxation.

[30:34] So,

[30:35] why would our waste

[30:36] >> Res- residents will residents will pay

[30:39] » Res- residents will residents will pay

[30:39] through the taxes that we

[30:42] uh they're charged from the county for

[30:45] waste disposal.

[30:47] It's not part of our expenses and it's

[30:50] not part of our tax revenues. Part of

[30:53] the county's.

[30:54] County oversees waste disposal

[30:57] and the taxes the

[30:59] SIPCO

[31:00] taxes that are we are obligated to

[31:03] >> Why would that be on our

[31:05] » Why would that be on our

[31:05] >> But it's just more of a general

[31:07] » But it's just more of a general

[31:07] statement that

[31:08] >> Well, it's a general statement.

[31:10] » Well, it's a general statement.

[31:10] >> It's a general statement that shouldn't

[31:11] » It's a general statement that shouldn't

[31:11] be there because we don't the count the

[31:14] county is

[31:16] looks after our garbage disposal. We

[31:17] don't look after our garbage disposal.

[31:20] >> So, that point can easily be taken out,

[31:22] » So, that point can easily be taken out,

[31:22] but I thought that

[31:25] the most municipalities still have to

[31:27] pay something related to commercial

[31:29] waste or something and that's why we've

[31:30] always kept that line in there.

[31:31] >> Commercial waste pays for our waste.

[31:35] » I think through through the chair to

[31:36] council we can look at it amending the

[31:39] >> I would appreciate it because it's it's

[31:41] » I would appreciate it because it's it's

[31:41] kind of putting a false

[31:43] >> misleading

[31:43] » misleading

[31:43] >> It's a very misleading. So

[31:46] » It's a very misleading. So

[31:46] >> No, that's that's easily removed.

[31:48] » No, that's that's easily removed.

[31:48] >> Okay, thank you.

[31:55] And

[31:56] one more question.

[31:58] With regards to the health services,

[31:59] what was

[32:01] the actual

[32:02] 57861

[32:04] for?

[32:06] Is that what we give to the hospital

[32:08] for?

[32:12] » I I think that's um

[32:14] >> for for

[32:14] » for for

[32:15] I don't know.

[32:15] >> care and maintenance of the cemetery is

[32:17] » care and maintenance of the cemetery is

[32:17] it not?

[32:18] >> No.

[32:20] » No.

[32:20] >> We we do pay for cemetery maintenance.

[32:23] » We we do pay for cemetery maintenance.

[32:23] >> Yeah, but it shouldn't be under health

[32:24] » Yeah, but it shouldn't be under health

[32:24] services.

[32:26] They're dead.

[32:29] Not health

[32:30] >> It's not It's not health services.

[32:32] » It's not It's not health services.

[32:32] That's

[32:33] >> That's That's where it is That's where

[32:34] » That's That's where it is That's where

[32:34] >> That That be That would be under uh

[32:37] » That That be That would be under uh

[32:37] uh

[32:39] I don't uh recreational cultural

[32:41] services, not uh health services.

[32:44] >> I think that when uh you have to prepare

[32:47] » I think that when uh you have to prepare

[32:47] the the FIR for the for the ministry,

[32:51] they have cemeteries under health

[32:53] services, and that's why we keep it

[32:55] consistent with that. Because the they

[32:57] also get a copy of the audited financial

[32:59] statements along with the FIR.

[33:01] And so it just keeps it consistent with

[33:03] the FIR.

[33:04] >> Can we look any of that cuz uh it's

[33:07] » Can we look any of that cuz uh it's

[33:07] we budgeted 7,500

[33:11] in 2025,

[33:13] yet our actual is 57,861.

[33:16] That's something's something's wrong

[33:18] here.

[33:20] >> I can speak to that.

[33:21] » I can speak to that.

[33:21] >> Sure.

[33:22] » Sure.

[33:22] >> Uh thank you, Deputy Mayor Locks, to

[33:24] » Uh thank you, Deputy Mayor Locks, to

[33:24] Councillor Meadows. Um that's due to the

[33:26] grass cutting tender. It was previously

[33:27] being reflected under parks and rec, and

[33:30] so that was better reflected about the

[33:31] actual cost of the maintenance of

[33:33] cemeteries every year. This year we

[33:35] divided it out and actually put it under

[33:36] the cemetery line. So it was an approved

[33:38] tender by council. It just was all being

[33:40] reflected under parks and rec, and for

[33:42] better accounting practices and

[33:44] transparency, we brought it over to

[33:45] cemeteries.

[33:47] >> I recall that.

[33:47] » I recall that.

[33:47] >> Uh supplemental.

[33:49] » Uh supplemental.

[33:49] >> Sure.

[33:49] » Sure.

[33:49] >> So are

[33:51] » So are

[33:51] all our grass cutting is under health

[33:53] services now or just the cemetery

[33:56] portion?

[33:57] >> Uh through the chair to Councillor

[33:58] » Uh through the chair to Councillor

[33:58] Meadows, just the cemetery portion.

[34:00] >> Just the cemetery.

[34:00] » Just the cemetery.

[34:00] >> Before it was all under parks and rec,

[34:02] » Before it was all under parks and rec,

[34:02] and we've pulled out the cemetery

[34:04] portion and are now reflecting it under

[34:06] the cemetery line.

[34:08] >> So it cost us 57,000 for the

[34:12] » So it cost us 57,000 for the

[34:12] the cemeteries to be cut?

[34:14] >> Correct. Care and maintenance of the

[34:15] » Correct. Care and maintenance of the

[34:15] cemeteries. In there you'll also see

[34:17] some maintenance. We do routine

[34:18] maintenance on the trees and the fencing

[34:21] as well. Uh spring cleanup after the

[34:23] winter with the debris.

[34:24] >> Wow.

[34:25] » Wow.

[34:25] And monument repair is also

[34:27] >> I think it

[34:28] » I think it

[34:28] uh it's just that uh

[34:31] I I look at uh what was budgeted

[34:35] and they were way off the mark on their

[34:37] budget for that portion. So,

[34:41] >> Uh I believe that's when they did change

[34:44] » Uh I believe that's when they did change

[34:44] from from it all being grass cutting was

[34:47] one and then it switched over. So,

[34:49] obviously it doesn't reflect very

[34:52] very good on on paper, but

[34:54] >> Well, we should have Yeah, but we should

[34:56] » Well, we should have Yeah, but we should

[34:56] have we should have caught that one when

[34:58] we were budgeting.

[34:58] >> budgeted first and then the change came

[35:01] » budgeted first and then the change came

[35:01] after. So, that's why it's skewed the

[35:03] numbers.

[35:03] >> it was all budgeted for under parks and

[35:05] » it was all budgeted for under parks and

[35:05] rec, but just a better reflect the

[35:07] actual costs, we brought it over to

[35:09] cemeteries. So, it was all budgeted for

[35:12] in the overall operating budget. We've

[35:14] just brought it over to cemeteries to

[35:15] better reflect the actual cost.

[35:17] >> And how many Sorry, how many cemeteries

[35:19] » And how many Sorry, how many cemeteries

[35:19] do we have in the in the township?

[35:21] >> Well, we have

[35:21] » Well, we have

[35:21] >> Uh thank you through the chair to

[35:22] » Uh thank you through the chair to

[35:22] Councilwoman Meadows. We care for the

[35:24] maintenance of six uh

[35:26] six

[35:26] inactive cemeteries and the cemetery are

[35:29] under the control of the township.

[35:30] >> Okay. Thank you.

[35:31] » Okay. Thank you.

[35:31] >> Yeah, I believe before 7,500 covered the

[35:34] » Yeah, I believe before 7,500 covered the

[35:34] cemetery and then the grass cutting

[35:36] became part of that bill.

[35:37] >> On this schedule they moved it under

[35:40] » On this schedule they moved it under

[35:40] recreation and culture and so on. So,

[35:43] >> Okay.

[35:47] » Wow. Okay, Sue. Continue on.

[35:51] >> We're only on page three of

[35:53] » We're only on page three of

[35:53] >> Sorry.

[35:53] » Sorry.

[35:54] >> No, we're on No, no,

[35:55] » No, we're on No, no,

[35:55] that's what we're here for.

[35:56] >> The pages that we're covering have the

[35:57] » The pages that we're covering have the

[35:57] most meat in them. So, so, it's we're

[36:01] we're doing great. Um and in fact, I

[36:04] think we can go to the next page.

[36:06] Uh the statement of change in net

[36:08] financial assets,

[36:09] you know, this is just an arithmetic

[36:11] exercise to get from the annual surplus

[36:13] figure that you saw on the on page five

[36:15] to um

[36:17] the amount that you see of net financial

[36:19] assets on page four down to the 2.1

[36:22] million. So, nothing nothing

[36:23] earth-shattering there.

[36:25] Um the statement of cash flow, again,

[36:28] you'll see that uh $11,700

[36:31] $700 uh 902 reflected in the um

[36:36] uh statement of financial position.

[36:38] Um

[36:39] just high level, we had net cash from

[36:42] operations of about 4.7 million. We

[36:45] spent about 4.2 million on tangible

[36:48] capital assets. We paid down debt of

[36:50] about $400,000.

[36:53] Um

[36:53] it also shows $914,000

[36:56] coming in from change in investments,

[36:58] but really you need to look at the

[37:00] investment figure in conjunction with

[37:02] the uh cash figure. And they, you know,

[37:05] if you add the two of them together year

[37:06] over year, they only changed by about

[37:08] $120,000.

[37:11] So, that 914 basically became part of

[37:13] year-ending cash balance.

[37:16] >> [clears throat]

[37:18] » Uh yeah, sorry.

[37:20] >> I have just a quick question perhaps to

[37:22] » I have just a quick question perhaps to

[37:22] the treasurer.

[37:23] I'm just curious uh what did we sell

[37:26] to make $471,000?

[37:28] In here it says gain on disposal of

[37:30] tangible capital assets.

[37:33] What did we dispose for half a million

[37:35] dollars almost?

[37:38] >> Some some of our equipment.

[37:41] » Some some of our equipment.

[37:41] >> Uh

[37:42] » Uh

[37:42] well, if it's amortized, then it's worth

[37:44] nothing, then how does it worth half a

[37:45] million bucks?

[37:47] >> Mr. Andrew Chuck?

[37:48] » Mr. Andrew Chuck?

[37:48] >> Uh through through the

[37:50] » Uh through through the

[37:50] through the chair, yeah, we we do sell

[37:53] we would have sold various equipment

[37:55] throughout the

[37:57] the year.

[37:58] >> And it totals to almost half a million

[38:00] » And it totals to almost half a million

[38:00] dollars? That's how much you sell?

[38:01] >> That's a lot.

[38:05] » Um I can get back to you with a detailed

[38:08] breakdown of that.

[38:08] >> I'm curious more than anything else,

[38:09] » I'm curious more than anything else,

[38:09] just to like to

[38:10] >> Yeah, I I'll get back to you with a a

[38:11] » Yeah, I I'll get back to you with a a

[38:11] detailed breakdown.

[38:13] >> all the way.

[38:13] » all the way.

[38:13] >> Thank you.

[38:14] » Thank you.

[38:14] >> Yep.

[38:15] » Yep.

[38:15] >> Sorry, thank you very much.

[38:17] » Sorry, thank you very much.

[38:17] >> Okay, Sue.

[38:18] » Okay, Sue.

[38:18] >> Okay, next page, the statement of

[38:20] » Okay, next page, the statement of

[38:20] remeasurement gains and losses. we've

[38:22] only been looking at this statement for

[38:24] the last couple of years. Um

[38:26] and that $69,000 basically represents

[38:29] the difference between the cost base of

[38:31] our investments and what the fair market

[38:33] value is as of today.

[38:36] Um so, the investments include some

[38:38] bonds and they often, you know,

[38:42] whi- while they're not a bad investment,

[38:44] their fair market value is always less

[38:46] until they get closer to maturity. So,

[38:48] you know, nothing that you should be

[38:49] worried about on that on that at all.

[38:52] Um starting on page nine, we get into

[38:55] the notes of the financial statements.

[38:58] And I have a couple of of comments. I

[39:01] don't want to belabor each and every one

[39:03] of them, but um note two on the top of

[39:07] page 14,

[39:10] important to note that of that $11.7

[39:12] million

[39:14] cash balance,

[39:16] you know, the lion's share of that is is

[39:18] restricted for the obligatory reserve

[39:20] funds.

[39:22] So, there's only sort of unrestricted

[39:24] cash of about 842,000.

[39:28] » Sorry. Sorry, I got a question. Oh,

[39:31] go ahead, Counselor Matt. Through the

[39:32] chair.

[39:34] Could we go back to page nine, please?

[39:36] >> Yes.

[39:40] » Okay, uh

[39:41] item number C,

[39:43] uh revenue recognition.

[39:46] And you have in there, uh included in

[39:48] user fees are wastewater and water usage

[39:52] fees.

[39:54] These fees are recognized as revenue

[39:56] when the service is rendered. Other user

[39:59] fees are recognized on an accrual basis

[40:02] as they become available and measurable.

[40:04] So, are these fees not measurable? Is

[40:07] that what you're trying to These

[40:08] particular fees that we're doing right

[40:09] now aren't measurable?

[40:12] >> Sorry, are you referring to the

[40:13] » Sorry, are you referring to the

[40:13] wastewater and water usage fees or

[40:16] >> Uh number I item C. Yeah, included uh,

[40:19] » Uh number I item C. Yeah, included uh,

[40:19] water and waste water usage fees.

[40:22] Okay?

[40:23] Are you saying uh, currently they're not

[40:25] measurable those those fees or

[40:27] >> No, what that's referring to is that

[40:29] » No, what that's referring to is that

[40:29] user fees include waste water, water

[40:32] usage, and then several other user fees.

[40:34] That's that second third sentence is

[40:37] referring to those other fees, not water

[40:39] and waste water.

[40:40] >> Okay.

[40:40] » Okay.

[40:40] And then uh, if you go to item D,

[40:43] deferred revenue,

[40:44] >> Mhm.

[40:44] » Mhm.

[40:45] >> oblique

[40:45] » oblique

[40:45] uh, obligatory reserve funds, revenue

[40:49] restricted by legislation, regulation,

[40:51] or agreement, and not available for

[40:54] general municipal purposes is reported

[40:57] as deferred revenue on the statement of

[40:59] financial position.

[41:01] The revenue is reported on the statement

[41:03] of operations in the year in which it is

[41:07] used for that specific purpose.

[41:10] Uh, why are why are they not why are our

[41:13] water and waste water rates not in in

[41:15] deferred revenue?

[41:20] Because it's it's it's a legislated

[41:23] revenue,

[41:25] uh, only uh, water and waste water users

[41:29] are are supposed to be charged for water

[41:32] and waste water.

[41:34] And currently the way it's set up,

[41:37] uh, it's not.

[41:39] So, why

[41:43] >> So, so paragraph D refers to things like

[41:46] » So, so paragraph D refers to things like

[41:46] development charges,

[41:48] um, OC funding,

[41:51] funds that have not been used yet. Water

[41:53] and waste water in my mind are a little

[41:55] bit different because every year you

[41:57] have all sorts of expenses to offset

[41:59] that those user fees, that revenue.

[42:02] Um, and then there's always a

[42:03] difference, of course, between how much

[42:06] the water and waste water makes, and

[42:08] that gets, you know, either put into the

[42:10] reserve or taken away from the reserve.

[42:13] >> Right, but that that is that should be

[42:16] » Right, but that that is that should be

[42:16] it is a legislated

[42:19] usage

[42:20] for the like the rates and when

[42:23] something like that happens, we then

[42:26] turn around and charge the people. I

[42:28] mean, it should be

[42:30] uh

[42:32] a deferred revenue.

[42:34] All right, that's the way I look at it

[42:36] anyways. Like it's it's legislated only

[42:38] water and waste water

[42:41] should have to pay for that, not the

[42:42] whole community. So, it should be a

[42:45] defer a deferred revenue.

[42:48] >> Well, I do know that every municipality

[42:50] » Well, I do know that every municipality

[42:50] in Adjala-Tosorontio isn't any

[42:51] exception. They do track those revenues

[42:54] and expenses for water and waste water

[42:55] separately so that they are uh

[42:58] uh

[42:59] I don't want to say self-fulfilling, but

[43:00] but they do just offset each other.

[43:02] Certainly water and waste water revenue

[43:05] is not used to offset other operating

[43:07] expenses of the municipality.

[43:10] Uh

[43:11] the

[43:13] I can I can tell you that other

[43:14] municipalities in Ontario do not

[43:16] consider water and waste water deferred

[43:19] revenue.

[43:20] Um and and certainly for your

[43:22] municipality, your discretionary reserve

[43:25] fund for water and waste water is

[43:26] actually in a deficit. So, you need to

[43:29] take in as much money as you can to get

[43:31] that back into a positive

[43:33] >> Yeah, but that's that's the problem.

[43:34] » Yeah, but that's that's the problem.

[43:34] It's

[43:36] we're running a deficit in our water and

[43:38] waste water.

[43:40] People who are not on water and waste

[43:42] water are having to pay for it.

[43:46] Through the loan. Listen, you can rob

[43:48] Peter to pay Paul. You're it's coming

[43:50] out of the taxpayer every taxpayer's

[43:53] pocket and it's coming out of the

[43:55] And it's and it's

[43:56] >> going to be repaid.

[43:57] » going to be repaid.

[43:57] >> And it and it's coming out of the waste

[43:59] » And it and it's coming out of the waste

[43:59] the people who are paying the the the

[44:01] current water and waste water as well.

[44:03] So, they're getting billed twice for it.

[44:05] So, to me it's totally wrong the way

[44:07] this is happening. So

[44:11] I and and Brent and I we've had

[44:13] discussions on that on on several

[44:15] occasions for the past 12 years. So

[44:19] >> Some of you and I.

[44:20] » Some of you and I.

[44:20] >> Yeah, some of you and I. So and and you

[44:23] » Yeah, some of you and I. So and and you

[44:23] know, I I I feel sorry for Brent and

[44:25] because he's him and staff are stuck

[44:28] with this

[44:29] conundrum over water and waste water and

[44:32] they have been for years.

[44:34] >> So so my understanding as the auditor

[44:36] » So so my understanding as the auditor

[44:36] and Brent may correct me is that the

[44:38] interest related to that debt for water

[44:41] and waste water is allocated to that

[44:43] department so that the other taxpayers

[44:46] that do not have water and waste water

[44:47] service are not paying for that. I'm

[44:49] going to turn it over to Brent to see if

[44:52] he agrees with me or not, but

[44:57] » Mr. Anderchuk.

[44:58] >> Well, with respect to the

[45:00] » Well, with respect to the

[45:00] the we're we're talking about the

[45:01] internal loan.

[45:03] Um

[45:03] >> Yes, the internal loan that's uh what? 5

[45:06] » Yes, the internal loan that's uh what? 5

[45:06] million?

[45:08] >> It's about It's about 5 million. So

[45:11] » It's about It's about 5 million. So

[45:11] uh we do

[45:12] >> 1,000. Yeah.

[45:13] » 1,000. Yeah.

[45:13] >> For for budget purposes, water and waste

[45:16] » For for budget purposes, water and waste

[45:16] waste water revenues only pay for water

[45:18] and waste water services and expenses.

[45:21] At the end of the year, and this has

[45:23] been going on long before I was here,

[45:26] uh the water and waste water revenues

[45:28] aren't uh don't cover the water and

[45:30] waste water expenses.

[45:33] We have in the last few years borrowing

[45:36] from the working fund

[45:38] reserve. And it's and it's it's a it's

[45:41] borrowing it the the this money is going

[45:43] to be repaid.

[45:45] >> Okay. And the working fund is paid for

[45:47] » Okay. And the working fund is paid for

[45:47] by who?

[45:49] >> Uh the working fund uh

[45:52] » Uh the working fund uh

[45:52] the the

[45:53] the money that has been allocated has

[45:55] come from the surplus in the operating

[45:57] budget. I can also tell you uh

[46:00] previously or previously to

[46:03] uh,

[46:03] myself becoming treasurer uh,

[46:06] the, um, the deficit in water and

[46:09] wastewater was actually paid for out of

[46:11] different reserves. I I can't quote you

[46:13] which ones, but prior to me joining uh,

[46:15] if there was a deficit, an overall

[46:17] deficit in the water or wastewater

[46:19] >> And who And who paid Okay, who pays for

[46:22] » And who And who paid Okay, who pays for

[46:22] the operating budget each year?

[46:24] >> Uh,

[46:25] » Uh,

[46:25] >> All the taxpayers, correct?

[46:28] » All the taxpayers, correct?

[46:28] So, all the taxpayers pay for the

[46:30] operating budget.

[46:31] The overages from the operating budget

[46:34] are going into the working fund, and the

[46:36] working fund is going to pay for,

[46:38] uh, the water and the wastewater.

[46:40] >> On an internal loan that's getting paid

[46:42] » On an internal loan that's getting paid

[46:42] back to the taxpayers.

[46:43] >> loan On an internal loan

[46:45] » loan On an internal loan

[46:45] >> We can we can do the same thing every

[46:46] » We can we can do the same thing every

[46:46] year

[46:48] >> But nobody wants to say it. Nobody wants

[46:49] » But nobody wants to say it. Nobody wants

[46:49] to sit here on this council and say that

[46:52] it's the taxpayers that are paying for

[46:53] it.

[46:53] >> But they're not paying for it. They're

[46:54] » But they're not paying for it. They're

[46:55] lending money to the township to cover

[46:57] these expenses, which money will be

[46:58] repaid. It's It's a loan from the

[47:00] taxpayers, if you want to put it that

[47:02] way.

[47:03] >> Can we have a date when it's going to be

[47:04] » Can we have a date when it's going to be

[47:04] paid back to the taxpayers then?

[47:07] >> Well, I mean, I don't have the entire

[47:09] » Well, I mean, I don't have the entire

[47:09] every all the books in front of me, but

[47:11] >> Can we have a some sort of date when

[47:12] » Can we have a some sort of date when

[47:12] when the the taxpayers are going to get

[47:14] a check to

[47:15] >> we're getting off topic here anyway, so

[47:16] » we're getting off topic here anyway, so

[47:16] let us not

[47:17] >> not It's not in here, so I

[47:19] » not It's not in here, so I

[47:19] Anyway, go ahead.

[47:22] >> Carry on, Sue.

[47:24] » Carry on, Sue.

[47:24] >> Okay, where were we? We were on

[47:27] » Okay, where were we? We were on

[47:27] >> Page 10, I guess.

[47:29] » Page 10, I guess.

[47:29] >> We were on

[47:31] » We were on

[47:31] I was up to note two on page 14.

[47:35] And I'm going to push you ahead to note

[47:38] eight on page 16.

[47:42] Uh, both note eight and note nine.

[47:44] Anytime you pick up a

[47:45] a financial statement, municipal or

[47:47] otherwise, you want to look for a note

[47:48] that that references contingencies or

[47:50] lawsuits and commitments. Um, these

[47:53] notes have just been updated for the the

[47:55] year. They're not new. They certainly

[47:56] were in the statements last year, but

[47:58] just to bring them to your attention.

[48:07] And the next note I'd like to talk about

[48:09] is note 16 at the top of page 20.

[48:14] You've all heard me year after year talk

[48:16] about that this is my favorite note, and

[48:18] it comes back to that $61.4 million

[48:22] figure that we saw on page four of the

[48:25] financial statements.

[48:27] >> Sorry, what page?

[48:28] » Sorry, what page?

[48:28] >> Uh page 20, note 16 at the very top.

[48:33] » Uh page 20, note 16 at the very top.

[48:33] >> Accumulated surplus.

[48:34] » Accumulated surplus.

[48:35] >> Yeah, the accumulated surplus.

[48:36] » Yeah, the accumulated surplus.

[48:36] >> Accumulated surplus. Okay, got you.

[48:38] » Accumulated surplus. Okay, got you.

[48:38] >> Yeah. So, that's that same $61.4 million

[48:40] » Yeah. So, that's that same $61.4 million

[48:40] that we've seen a couple times in the

[48:42] financial statements.

[48:43] So, important to note that that of that

[48:46] $61.4 $53.8

[48:49] million is invested in tangible capital

[48:51] assets.

[48:53] There's about just shy of $5.5 million

[48:55] in reserves and reserve funds. Um and

[48:59] then you've got your breakdown at the

[49:01] very top there of the general area

[49:04] taxation surplus with the unfunded

[49:06] liabilities for the asset retirement

[49:08] obligations and the employee future

[49:09] benefits.

[49:10] So, just important to note, especially

[49:13] with it being a campaign year,

[49:15] uh important for people to know that you

[49:17] know, the municipality does not have

[49:19] $61.4 million of reserves or cash or any

[49:22] of those things. It's broken down in in

[49:25] these amounts.

[49:25] >> Right.

[49:28] » Um

[49:29] and then last but not least, I just

[49:34] wanted to just in general terms talk

[49:36] about the schedules at the back.

[49:38] Schedule one is on page 23.

[49:41] And this gives you a detailed breakdown

[49:43] of the reserves, the discretionary

[49:45] reserve funds, as well as the obligatory

[49:47] reserve funds.

[49:53] Schedule two and three gives you more

[49:56] details on the tangible capital assets.

[49:59] Schedule two on page 24 breaks down the

[50:01] tangible capital assets between land,

[50:04] buildings, equipment, vehicles, and so

[50:06] on.

[50:08] Um

[50:09] schedule three on page 25 uh segments

[50:12] the tangible capital assets between

[50:14] departments, general government,

[50:15] protection, transportation,

[50:17] environmental.

[50:19] And then, last but not least, schedule

[50:21] four is the schedule of segmented

[50:23] revenues and expenses, and it shows a

[50:25] comparative of the revenues and expenses

[50:29] by department, 2025 compared to 2024.

[50:34] And those figures that you see there

[50:36] um at the bottom of the 2025 and 2024

[50:39] columns on the far right, 2.5 million

[50:42] and 3.2 million, those tie back into

[50:45] page five to the statement of

[50:46] operations.

[50:48] >> Councillor Menard?

[50:49] » Councillor Menard?

[50:49] >> Yeah.

[50:50] » Yeah.

[50:50] Uh Brent, just got a question for you.

[50:52] With all uh two capital

[50:54] uh that's uh all the brackets down there

[50:57] going into the reserves, is that

[50:59] which funds are they coming from?

[51:01] >> Sorry, what page

[51:02] » Sorry, what page

[51:02] >> what page are you discussing?

[51:03] » what page are you discussing?

[51:03] >> Oh, sorry, page 23, schedule one.

[51:06] » Oh, sorry, page 23, schedule one.

[51:06] >> Okay.

[51:13] » And everything that's in the bracket

[51:15] under I think there's 2 million

[51:17] 323 431.

[51:21] Is that coming would that be coming out

[51:22] of uh our working fund?

[51:25] >> Uh through the chair to

[51:27] » Uh through the chair to

[51:27] uh Councillor Menard. No, it

[51:30] the 2.3 million is uh for uh payment

[51:34] from the reserves

[51:36] for the various capital projects, and

[51:39] the funding sources for those negative

[51:42] for those numbers in brackets

[51:44] uh is in the reserve line, so

[51:48] >> So, those

[51:49] » So, those

[51:49] >> For example, the fire for the fire

[51:51] » For example, the fire for the fire

[51:51] department, we have

[51:53] 914

[51:55] uh thousand dollar not 915,000 dollars

[51:58] and that is funding for

[52:01] um

[52:01] coming out of the fire reserve to fund

[52:04] fire capital projects.

[52:06] >> Okay.

[52:09] Oh, the working

[52:09] >> working fund working fund

[52:11] » working fund working fund

[52:11] >> working fund, we fund it capital

[52:12] » working fund, we fund it capital

[52:12] projects from the working fund of about

[52:15] 19,000 dollars.

[52:16] >> Okay.

[52:21] Got you.

[52:22] Okay, thanks.

[52:26] Casey

[52:27] >> That's the end of my comments, but I'm

[52:30] » That's the end of my comments, but I'm

[52:30] happy to entertain further questions and

[52:32] of course all the difficult ones will be

[52:33] directed to the treasurer.

[52:36] >> Of course.

[52:37] » Of course.

[52:37] Um

[52:38] So, is there any further questions?

[52:40] >> I was I just have one

[52:42] » I was I just have one

[52:42] page 16.

[52:45] I was just wondering

[52:46] uh

[52:47] Brent, you mentioned that uh

[52:49] with regards to the contracts with

[52:53] regards to

[52:55] uh Colgan are separate than from the

[52:58] other ones for for Aqua.

[53:02] How's How's the How's that a like our

[53:04] our contract for for Aqua

[53:07] for [clears throat] Col the Colgan

[53:09] wastewater treatment plant is 453 815

[53:12] plus a 17.65 management fee

[53:16] and

[53:18] an annual reconciliation to actual

[53:21] charges, which we talked about earlier.

[53:23] Which we we we're getting a a refund

[53:26] back of 141,000.

[53:30] Um

[53:32] What's the water agreement stipulated an

[53:35] annual price of 56,800?

[53:42] » Uh the uh through the through the chair

[53:44] to counselor Meadows, that the $56,000

[53:47] is

[53:48] uh

[53:49] I consider it an an addendum with Aqua,

[53:52] so that's for the additional the

[53:54] additional they're charging above the

[53:56] the original contract for the additional

[53:58] infrastructure that was installed in

[54:00] tribute by tribute.

[54:02] >> Because there's more in

[54:03] » Because there's more in

[54:03] >> There's more there's more infrastructure

[54:04] » There's more there's more infrastructure

[54:05] for them to maintain.

[54:07] >> Okay, so

[54:08] » Okay, so

[54:08] >> And that will

[54:09] » And that will

[54:10] My understanding is uh

[54:11] the the contract with Aqua will be

[54:15] uh

[54:16] renegotiated, so there's just one

[54:18] contract.

[54:19] >> Okay, so when when like it this is a a

[54:23] » Okay, so when when like it this is a a

[54:23] 5-year term for this wastewater

[54:26] treatment agreement with Aqua.

[54:29] So it's it doesn't end until October

[54:31] 27th, 2029.

[54:36] So

[54:39] we haven't assumed

[54:41] uh the wastewater treatment plant yet,

[54:43] have we?

[54:44] >> Correct.

[54:46] » Correct.

[54:46] >> So if we haven't assumed it,

[54:50] um

[54:52] or how how can we bind in a a contract

[54:57] with them for that wastewater treatment

[54:59] plant for for that length of time? You

[55:01] know what I mean? Because we haven't

[55:03] assumed the plant yet.

[55:06] >> Uh

[55:07] » Uh

[55:07] Correct. So I'm I'm sorry, what is what

[55:09] is your question?

[55:10] >> I I guess my question is how can we have

[55:12] » I I guess my question is how can we have

[55:12] an agreement till

[55:14] October 27th, 2029?

[55:19] Cuz I I'm sure we're going to be

[55:20] assuming that plant soon, but

[55:25] we might not have Aqua or

[55:27] we we may not assume it. We we don't

[55:30] know, so

[55:33] it's not our plant.

[55:35] I guess is what I'm getting at.

[55:40] So, how can we have a contract with

[55:41] something that's not ours?

[55:45] >> Well, we have the main contract with

[55:47] » Well, we have the main contract with

[55:47] with Aqua, I believe.

[55:49] And then we have the a separate contract

[55:51] for

[55:53] the Colgan wastewater treatment plant.

[55:55] >> I guess what I'm saying is why are why

[55:57] » I guess what I'm saying is why are why

[55:57] are the taxpayers paying for

[56:00] uh

[56:02] main- let's say something breaks down

[56:04] there maintenance costs for for the

[56:07] wastewater treatment plant when we don't

[56:08] own it.

[56:10] >> Well, we are we are also collecting the

[56:12] » Well, we are we are also collecting the

[56:12] revenue for the wastewater treatment

[56:13] plant.

[56:14] >> being Is it being recovered? You recover

[56:15] » being Is it being recovered? You recover

[56:15] it from the developer.

[56:17] >> Well,

[56:18] » Well,

[56:18] the way they

[56:19] >> No, but I'm saying like if there's a

[56:21] » No, but I'm saying like if there's a

[56:21] maintenance Let's say the

[56:22] >> are collecting the

[56:24] » are collecting the

[56:24] Aqua is maintaining the plant and we are

[56:25] collecting the revenue that's being

[56:27] generated from the

[56:28] >> And we're we're we're paying for any

[56:32] » And we're we're we're paying for any

[56:32] uh thing that breaks down in that plant

[56:34] right now?

[56:36] Or is

[56:37] >> My understanding because

[56:40] » My understanding because

[56:40] and like I could be wrong, but my

[56:41] understanding is since we haven't

[56:43] assumed the plant, if something breaks

[56:45] down, it's the responsibility of the

[56:47] developer.

[56:49] >> Is it so anything any maintenance any

[56:52] » Is it so anything any maintenance any

[56:52] main- cuz in the Well, I'm just I'm just

[56:54] curious because it says in in here

[56:57] uh with regards to operations and

[56:59] maintenance.

[57:01] So, if we're paying for maintenance

[57:05] >> We are.

[57:06] » We are.

[57:06] >> Then

[57:07] » Then

[57:07] >> But the maintenance is not the same as

[57:08] » But the maintenance is not the same as

[57:08] repair. Maintenance is

[57:11] upkeep. Upkeep just to make sure that

[57:13] the filter that's worth 50 bucks is

[57:15] okay.

[57:15] >> There's no filters in there for 50

[57:17] » There's no filters in there for 50

[57:17] bucks. They're a million bucks. So,

[57:18] that's why I'm kind of concerned when

[57:20] we're we're going to be paying for

[57:22] maintenance.

[57:24] » Well, the the way I read this is that we

[57:27] probably had to have an obligation

[57:29] towards the province

[57:30] to enter into a

[57:32] maintenance agreement with Aqua because

[57:35] the system is running but then all the

[57:37] repair costs are being

[57:39] forced or paid for by the developer.

[57:42] That's kind of how I read it and then

[57:45] this these terms the so that the the

[57:47] contract terms and the cost of the

[57:49] contract is being

[57:51] funded by the revenue that comes in from

[57:54] the people who live in Colgan who pay

[57:55] the monthly uh

[57:58] switch fees.

[57:59] >> Is there any way

[58:01] » Is there any way

[58:01] I can get a copy of that agreement?

[58:04] Or is that

[58:06] not

[58:07] >> You would have you would have signed off

[58:08] » You would have you would have signed off

[58:08] on the agreement but I can forward a

[58:09] copy of the

[58:11] the agreements.

[58:12] >> I I I would appreciate that. Thank you.

[58:15] » I I I would appreciate that. Thank you.

[58:15] >> No, there's a confusion there because it

[58:17] » No, there's a confusion there because it

[58:17] also it all all of the waste and water

[58:20] and waste water systems

[58:22] I understand there's a stipulation for

[58:23] Colgan there but the 5-year term two

[58:27] you're right. But the 5-year term is in

[58:30] a generality of just just Colgan.

[58:34] That's what I'm

[58:35] I understand where you're coming from.

[58:37] I'm wondering if this statement is

[58:40] off. general

[58:42] 5 years including what's going on.

[58:45] >> If you read the entire paragraph there,

[58:46] » If you read the entire paragraph there,

[58:46] it does state that there is a pre there

[58:48] there are two contracts we are

[58:49] discussing.

[58:50] >> Correct.

[58:50] » Correct.

[58:51] >> The first one from January 22 to

[58:52] » The first one from January 22 to

[58:52] December 30 of 26 is for what was before

[58:56] Colgan. Naturally because it was dated

[58:59] to 2022, it couldn't capture Colgan back

[59:02] then because there was no Colgan in

[59:04] 2022, right? So that's why I think

[59:07] instead of breaking that contract so

[59:09] close to the expiration date, the

[59:11] township just entered into a new

[59:13] contractual agreement with Aqua just for

[59:15] Colgan specifically.

[59:17] That's how I read it.

[59:19] >> Yeah, well I I I draw I I just like to

[59:22] » Yeah, well I I I draw I I just like to

[59:22] >> Well, we can get clarification.

[59:27] Do

[59:27] >> you have any other answers?

[59:28] » you have any other answers?

[59:28] >> I'm good. Thank you.

[59:29] » I'm good. Thank you.

[59:29] >> Um,

[59:30] » Um,

[59:30] so I guess

[59:31] is

[59:32] from our discussion earlier, we're going

[59:34] to

[59:35] change the language on the uh tangible

[59:38] assets.

[59:39] >> Yeah.

[59:40] » Yeah.

[59:40] >> I hope so.

[59:41] » I hope so.

[59:41] >> I think for that we need to change

[59:42] » I think for that we need to change

[59:42] policy.

[59:43] >> I just Yeah, I just want to

[59:45] » I just Yeah, I just want to

[59:45] >> The only change I noted to the draft

[59:47] » The only change I noted to the draft

[59:47] financial statement is to remove the

[59:49] last sentence in note 22D.

[59:53] And it reads, "It also consists of

[59:55] providing waste disposal to citizens."

[59:57] That is coming out. That's the only

[59:59] change to the audited financial

[1:00:00] statement that I gathered from our

[1:00:02] discussion.

[1:00:03] >> Okay.

[1:00:04] » Okay.

[1:00:05] Like personally, I

[1:00:06] Ideally, we don't need to look into

[1:00:09] >> the asset

[1:00:10] » the asset

[1:00:10] >> the wording on the assets

[1:00:11] » the wording on the assets

[1:00:12] >> uh for future Like could we put that as

[1:00:15] » uh for future Like could we put that as

[1:00:15] a motion or an amendment amendment to

[1:00:17] the motion, Robin, that uh

[1:00:20] uh when it's brought to council to look

[1:00:22] into to that for the next audit? Am I

[1:00:25] clear?

[1:00:26] >> Uh through the chair to Councillor

[1:00:27] » Uh through the chair to Councillor

[1:00:27] Meadows, uh I would say the council

[1:00:29] meeting would be the most appropriate

[1:00:30] place because uh as the auditor has

[1:00:32] indicated, it is a change in policy. So,

[1:00:35] at the time accept the financials for

[1:00:37] this year and then provide direction to

[1:00:39] staff to review the changeable assets

[1:00:40] going forward.

[1:00:42] >> Councillor Meadows.

[1:00:43] » Councillor Meadows.

[1:00:43] >> Yeah, just So, to that point uh through

[1:00:45] » Yeah, just So, to that point uh through

[1:00:45] the chair to Madam Clerk, could we get a

[1:00:47] copy of the policy? I don't know if

[1:00:49] that's available.

[1:00:51] So, that we see exactly what we are

[1:00:53] dealing with and what's in that policy

[1:00:55] that we are

[1:00:56] >> changing

[1:00:56] » changing

[1:00:56] >> proposing to change needs to be changed

[1:00:58] » proposing to change needs to be changed

[1:00:58] or

[1:00:59] >> Yes, we can have that the treasurer uh

[1:01:01] » Yes, we can have that the treasurer uh

[1:01:01] we can have the treasurer circulate that

[1:01:02] to you for information.

[1:01:04] >> Thank you.

[1:01:04] » Thank you.

[1:01:04] >> Perfect.

[1:01:06] » Perfect.

[1:01:06] >> Perfect. All right, if there's no

[1:01:07] » Perfect. All right, if there's no

[1:01:07] further questions,

[1:01:09] thank you, Sue.

[1:01:11] >> Thank you very much.

[1:01:11] » Thank you very much.

[1:01:11] >> Nice to see you once once a year.

[1:01:13] » Nice to see you once once a year.

[1:01:13] >> Thank you, Sue.

[1:01:15] » Thank you, Sue.

[1:01:15] >> [laughter]

[1:01:16] » [laughter]

[1:01:16] >> Um,

[1:01:18] » Um,

[1:01:18] so where were we here? Item 5.2.

[1:01:24] For I didn't Okay.

[1:01:27] 5.3. So, I had Councillor Borrows so we

[1:01:29] move it so Councillor Meadows.

[1:01:32] The recommendation reads reads that the

[1:01:34] draft audited financial statements for

[1:01:36] the year 2025 be received.

[1:01:40] And that the audit committee recommends

[1:01:42] that council approve the draft audited

[1:01:44] financial statements for the year 2025.

[1:01:52] Amend the motion.

[1:01:55] >> Councillor Meadows suggested that to put

[1:01:57] » Councillor Meadows suggested that to put

[1:01:57] an amendment to this statement there

[1:01:59] that pending.

[1:02:00] >> Well,

[1:02:01] » Well,

[1:02:01] ideally this audit this

[1:02:04] This This This is your statement should

[1:02:06] be received and then we're going to

[1:02:08] change policies coming further.

[1:02:11] >> For the next next council meeting. For

[1:02:13] » For the next next council meeting. For

[1:02:13] the next For the council meeting. This

[1:02:14] is just a This is just to bring this

[1:02:16] this forward.

[1:02:17] >> Which we've Yeah, we've decided we're

[1:02:19] » Which we've Yeah, we've decided we're

[1:02:19] doing that.

[1:02:20] We've given directions. So, all those in

[1:02:22] favor?

[1:02:23] And that is carried.

[1:02:26] And now we'll move to item six,

[1:02:28] adjournment. I now declare this meeting

[1:02:31] be adjourned at

[1:02:32] 6:58 p.m.

[1:02:35] Thank you very much everyone.

[1:04:38] » Mhm.

Audit Committee - 05 Aug 2026

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