I call this meeting to order at 6:00
p.m. and confirm all members are
present.
I'll begin the meeting reading the
Township land acknowledgement.
Uh the Township of Adjala-Tosorontio is
situated on the lands of the Treaty 18
being the traditional territory of the
Anishinaabe people including the Ojibwa,
Ottawa, and Potawatomi Nations
collectively known as the Three Fires
Confederacy.
This land is home to many diverse First
Nations, Inuit, and Métis peoples. We
acknowledge
that indigenous peoples as stewards of
the land and we honor their resilience
as well as their culture
and of our shared respect for the lands,
plants, animals, waterways, which
sustain us all. We recognize the
injustices against indigenous people,
and are mindful that the decisions of
the government impact our shared land
and all of the inhabitants. We commit to
reconciliation as a journey,
foster indigenous cultural awareness and
education opportunities, establish
respectful and healthy relations with
the indigenous people,
and continue to steward the land and its
inhabitants,
and to cultivate an inclusive community
for all.
Okay, next item of business is the
adoption of the agenda. The
recommendation reads that the agenda for
the audit committee
meeting held on Wednesday, August 5th,
be adopted as presented. Can I get a
mover?
Councillor Borzos, seconder.
Councillor Medows, any questions?
All in favor?
And that is carried.
Uh
move on to item three, disclosure
disclosure of pecuniary interest. Um
>> [sighs]
» [sighs]
>> The next item on the agenda is the
» The next item on the agenda is the
disclosure this Man, I can't speak
today. Disclosure of pecuniary interest.
Are there any disclosures of pecuniary
interest?
Seeing none.
Uh
item four, adoption of the minutes.
Uh the red the recommendation reads that
the minutes of the audit committee
meeting held on Monday, August 11th,
2025 be adopted as presented. Can I get
a mover?
Councillor Medows, seconder. Councillor
Borzos, any questions on those minutes?
Seeing none. All in favor? And that's
carried.
Move on to item five, which is uh
reports and correspondence.
Correspondence from Sue Bragg, Baker
Tilly SGBLLP,
dated December 18th, 2025 regarding the
interim audit
of December 31st, 2025 financial
statements. The recommendation reads
that the correspondence from Subrag
I guess that was the same thing.
Subrag, Baker Tilly, SGB LLP dated
December 18th, 2025 regarding interim
audit of December 25
December 31st, 2025 financial statements
be received. Can I get a mover?
Councillor Meadows, second by Councillor
Borozos. Any questions on that?
Seeing none, all in favor.
And that is carried.
And we'll move to 5.2. The
recommendation reads that the draft
audited financial statement for the year
2025
be received
and that the audit committee recommends
that council approve the draft audited
financial statements for the year of
2025.
Can I get a mover?
Well, can we get movers and seconders
and then discuss it or do you want to
discuss it?
>> It needs to be on the floor for
» It needs to be on the floor for
discussion.
>> So, movers.
Councillor Borozos, second.
Seconder.
>> Sorry, can we back up?
» Sorry, can we back up?
>> Sure.
» Sure.
>> Go back.
» Go back.
>> Did I go too fast? Too far?
» Did I go too fast? Too far?
>> from Subrag, should we not be listening
» from Subrag, should we not be listening
to our correspondence first?
>> Well, I believe
» Well, I believe
>> prior We we already
» prior We we already
We moved it.
>> If I floored it.
» If I floored it.
>> Put it bring it on the floor.
» Put it bring it on the floor.
>> Okay, sorry.
» Okay, sorry.
Did I go too fast?
I'm sorry. I'm looking for direction.
>> the chair, uh to Councillor Meadows. Uh
» the chair, uh to Councillor Meadows. Uh
so, the committee did move that item on
the floor and did already carry the vote
on that item. Uh I would recommend that
the current item on the floor is the
full financial audited statements. Uh
but if uh the committee does have any
questions regarding the initial
correspondence, those could be asked at
this time, too, As that interim audit
does affect the final results as well.
>> Sorry, my apologies.
Um so we will
listen to the report from Supra
» Good afternoon everyone.
So I have a copy of the draft financial
statements in front of me.
If there are any questions about the
interim letter, that's not a problem to
discuss as well.
Um would you like to discuss the letter
first or the financial statements?
>> I guess we can do the letter first
» I guess we can do the letter first
obviously. Sure.
» Did you have any specific questions? Do
you want me [laughter] just to explain
what it was? I can do that.
>> I I I just had one question with regards
» I I I just had one question with regards
to that and I I
you pretty much answered my question
with regards to the reasoning why
it you can't include distribution to
third parties.
Uh
There's just one comment on here. It
says the comments and concerns expressed
herein do not have a material effect on
the municipality's financial statements
and as such our opinion and
uh
in respect to these matters is not
qualified. Can you ex- just
so people you know laying people
will understand what that means.
Matters is not qualified.
>> So are you referencing the audit report
» So are you referencing the audit report
or the letter?
>> The letter.
» The letter.
>> Okay. I don't have a copy of the letter
» Okay. I don't have a copy of the letter
in front of me.
>> Can I
» Can I
Do you want it or do you want to have a
look at one of them?
Sorry.
Right here. It says in this paragraph
matters not qualified.
» So Baker Tilly National spends a lot of
money on lawyers to make sure they get
the wording of these letters right. So,
I hope I know the answer.
Um so
Right. Okay. So,
so this reference is to the interim
letter. So, every year we come and do
two audit two visits to the
municipality, one in the fall, which is
more of a control testing, systems
testing
focus, and then we come back at year
end, of course, to look at all the
year-end figures and all the substantial
transactions that take part throughout
the year.
So, this letter was issued as a result
of the interim audit. Um and it was a
clean letter. We did not identify
anything that needed to be brought to
the attention of of council or
management. Um and so, this paragraph
absolutely love. Um [clears throat]
So, page two and three in the bottom
right-hand corner, it is the standard
wording for the independent auditor's
report. It is a clean audit opinion,
certainly. Um and you'll note that these
financial statements are still
referenced as drafts until they are
approved, of course, by the audit
committee and then further to that by by
council. Um and we do
we do have this on the agenda for
council on September 9th. Um and my
business partner, Alex Jackson, will be
here. I will be um on my way to Nova
Scotia
that week and he's going to take take
the meeting for me.
Uh rest assured, he's done lots of these
presentations. He also
is
the engage the partner that has been
involved with the detailed review of
this file for a number of years.
Okay.
Um So, then to the statement of
financial position, which is page four
in the bottom right-hand corner, um the
statement of financial position,
um and a lot of the figures are pretty
similar to last year.
You'll notice that taxes receivable are
up
um, and we've discussed this the last
couple of years. It's certainly a trend
that we're seeing across, um, several
different municipalities in Simcoe
County.
Um, but also important to note that
that these figures, both the 2025 figure
of 3.3 million and last year's figure of
2.6 million, are at a point in time.
They are as at December 31st. So, by the
middle of January or today or 2 months
after after year end, the numbers could
have could have looked very different,
but we definitely are seeing a trend of
taxes receivable going up. And and part
of that is just due to the fact that,
you know, the assessments in the
municipality are increasing. So, of
course, taxes are increasing, which
means taxes receivable are increasing.
But, I also do think that there's a bit
of an economic impact
happening right now.
Um, you know, people are finding it a
little bit harder to pay in in many
areas, um,
and certainly the municipalities in
Simcoe County I don't think are any
exception to that.
Um, net financial assets are up about
735,000.
You can see that subtotal about halfway
down the page, 2.1 million compared to
about 1.3 million last year. But, of
course, a a lot of that is the increase
in taxes receivable. So.
Um, for non-financial assets, we have
tangible capital assets. You see that
there at 58 million, just shy of 59
million. That's all the bricks and
mortar and roads and infrastructure
owned by Adjala-Tosorontio.
And important to note that that figure
is the historical cost figure amortized
over the estimated useful life. So,
that, you know, approaching 59 million
dollars does not mean what it would cost
to replace all of the assets of the
municipality. It does not mean what the
fair market value of all of the property
is.
It is based on historical cost amortized
over estimated useful life.
Um,
>> [clears throat]
» [clears throat]
>> there were about 4.2 million dollars in
» there were about 4.2 million dollars in
of additions to tangible capital assets
during 2025.
Those included
quite a bit of road work.
We vouched several large invoices to
Lisbon Paving as an example and they
totaled over, you know, almost $1.5
million.
Um,
there was a new fire pumper tanker
purchase that was over a million
dollars.
There was also a new tandem plow truck
and that was in my notes at 232,000 but
that doesn't seem like enough. It was
that just a deposit maybe or would that
have been the total?
Uh, for a tandem plow truck?
>> That,
» That,
um,
it sounds like that was part it was just
the truck and not all of the
>> Yeah, not all the attachments. Okay.
» Yeah, not all the attachments. Okay.
Okay, that makes that makes sense. Um,
>> Uh, okay. What's the question? Go ahead.
» Uh, okay. What's the question? Go ahead.
>> Yeah, sorry. When we're talking about
» Yeah, sorry. When we're talking about
tangible assets and I noticed in
uh, page on page 11 here,
uh, some of the tangible assets that we
have,
uh,
buildings 30 to 50 years, equipment 5 to
20 years, which is normal.
Roads 40 to 85 years, which I have to
question.
I can live with that.
Uh, water and waste water
10 to 100 years. Again, that is way off.
Uh,
bridges 80 to 100 years. Again, that
one's off.
Uh, communications,
computers and hardwares 3 to 7 years.
Yeah, I can I can live with that one.
These ones with the 100 years, 85 years,
that's [snorts] off.
So, what are we doing to rectify that?
The
we're we're we're we can't have our
assets out 100 years.
And we're talking a 50-year difference
in
>> So, when the municipality adopted
» So, when the municipality adopted
tangible capital assets a number of
years ago, it would have set a tangible
capital asset policy at that time. These
estimated useful lives were adopted
then.
That's not to say they shouldn't be
reviewed again. It is something that
we've recommended to a number of our
municipal clients.
But important to note like that those
100 year amounts, I'd have to delve back
into the details of it, but that might
be that might be something very small.
It may not be It may not be the millions
of dollars you have invested that's all
being amortized over 100 years. There's
a range there, so.
>> Well, I guess
» Well, I guess
the the issue I have with having these
assets at those particular dates
is uh
we don't have 100 year old bridges that
are nowadays that are that are going to
last 100 years.
They're lucky if they're lasting 50
years.
So, we're we're building a false table
and I would like to see it in this this
audit statement or whatever that we look
at changing those assets because
they are wrong and I I I don't want to
put this forward this this statement
forwards with wrong information in it.
>> Well, I don't think the information in
» Well, I don't think the information in
the statement is is incorrect. I think
it is in accordance with the policy that
the municipality has adopted to date. I
don't disagree with you that it's
probably time to look at the tangible
capital asset policy and and re-evaluate
re-evaluate those useful lives, but I
don't think that it um
you know, misrepresents the information
that's here. It's quite clear to the
reader what useful lives are being used
for amortization.
>> Well, are we not when we go to a bank
» Well, are we not when we go to a bank
loan and we get a bank loan and they
look at our tangible assets and some of
let's say some of our assets are
uh
at 50 years and we got them down as a
100-year uh
length of time that we have that asset.
So, they're saying, "Well, that asset's
50% of of what?" Meanwhile, it has to be
replaced in 3 years.
So, that tangible assets
uh
loaning ability, I mean
>> Yeah, I I don't know exactly what they
» Yeah, I I don't know exactly what they
look at when they when they're
evaluating.
>> No, but they do. They evaluate They
» No, but they do. They evaluate They
evaluate your assets. And especially
with some of the figures I've seen in
here where we're we're on the hook with
uh
like when we took out the the grant
money, we went to to have a a co-signer
for for the assets of the the township
uh for a 31 I think it was 30 33 million
or whatever.
» Through the chair, you uh
Uh Councilman, are you referring to the
the grants?
>> Yeah, the grants. Like uh we
» Yeah, the grants. Like uh we
we had to we got to get that grant, we
had to
uh
get a waiver from the bank saying that
it's it's written right in the financial
statements here somewhere. Uh when we
get to it, I'll I'll point it out. But
I'm just saying when we're looking at
doing these grant funding projects
they look at our tangible assets and if
our assets aren't what they're supposed
to be then we could be in some big
trouble down the road. So, I would just
like to see it fixed.
» Councilor Borges.
>> Yeah, I actually Thank you. Through the
» Yeah, I actually Thank you. Through the
chair.
I was actually going to ask you. I
didn't catch the schedule there. But
is there a CRA
>> Get your mic.
» Get your mic.
>> Oh.
» Oh.
Sorry.
Uh is there a CRA-approved uh
table for these type of things or is it
all individually
determined by municipalities?
>> Yeah, so there is a CRA approved list
» Yeah, so there is a CRA approved list
that applies to taxable entities, but
that doesn't apply to municipalities.
>> So, they don't even have a guideline of
» So, they don't even have a guideline of
sort uh, for
>> No.
» No.
>> uh, capital
» uh, capital
>> No. No, and and when the ministry
» No. No, and and when the ministry
brought in the new rules about tangible
capital assets, they didn't provide a
guideline, either.
>> Okay. Thanks.
» Okay. Thanks.
>> It's entirely up to each municipality,
» It's entirely up to each municipality,
which
>> makes sense.
» makes sense.
>> difficult.
» difficult.
>> Councillor Meadows this point, like I
» Councillor Meadows this point, like I
mean a a
hundred even 50 years for a road, like I
mean some of our roads don't last 5
years.
>> [laughter]
» [laughter]
>> Sorry, I mean that's the reality.
» Sorry, I mean that's the reality.
>> This is the reality.
» This is the reality.
>> And and so we could go back and repave
» And and so we could go back and repave
it year after year after year after
year, so
uh, yeah, this is definitely I mean
maybe maybe for a dirt road a hundred
years is okay when horse and buggies
were running around, but
um, yeah, we need to redo this. Thank
you, sorry.
>> Yeah.
» Yeah.
>> Sorry.
» Sorry.
Through through the chair.
>> Yeah, just what I was saying earlier uh,
» Yeah, just what I was saying earlier uh,
when
uh, Brent with regards to uh, letters of
uh, it's sorry, it was letters of credit
uh, from the banks with regards to the
uh, loaned or the grant funding we got
as per various developments. The
municipality has received letters of
credit credit to cover the costs of
completing these projects. Letters of
credit held by the municipality at
December 31st, 2025 were 36 million
259792
and 2024 31 million 826325.
So, I'm just saying like uh,
uh,
somebody's
banking on us, you know,
on our assets that we have in this
municipality to make sure our assets
are at a tangible rate.
>> collateral
» collateral
>> Yeah. Yeah, it's collateral.
» Yeah. Yeah, it's collateral.
>> Uh,
» Uh,
sorry. Uh,
uh, through the the chair to Councillor
Meadows. The letters of credit are are
what we hold uh for for developments.
So,
so it would probably it would mostly be
related, for example, to tribute. We
hold securities until they until that
development is complete and we sign off.
We're We're holding on to secure
securities cuz if they don't complete
the work, we can draw on these letters
of credit.
>> Do Yeah, but when we went to the the
» Do Yeah, but when we went to the the
get the grant funding, we also had to
get a
uh uh
a letter of credit to support the fact
that we are we have a $27 million
shortfall in that that funding, maybe
even up to $32 million.
We would have to have some sort of line
of credit backing that project if we
didn't have any funding to like when we
sign that contract, they had to make
sure that we were able to
>> [sighs]
» [sighs]
>> have that money at hand
» have that money at hand
to build to build that infrastructure.
» Uh
>> They're not going to They're not going
» They're not going to They're not going
to give you a grant for $65 million not
knowing that where the other 27 or 31
million is going to be coming from.
>> Uh through the chair to Councillor
» Uh through the chair to Councillor
Meadows. If you're referring to the
grants for for everything development,
I'm not aware of any requirements for
uh
>> Well, it's in the contract.
» Well, it's in the contract.
>> province for
» province for
>> Uh we they had we had to have some sort
» Uh we they had we had to have some sort
of collateral to to make up the
shortfall.
Anyway, I'm I'm I'm
I'm just saying, like, that's why I was
brought up the assets. Anyway,
go ahead.
>> Um do you have a question? Okay,
» Um do you have a question? Okay,
Councillor Borotsik.
>> Through the chair,
» Through the chair,
since you came and
visit us, might as well make good use
out of your time. No, I I just curious
to how would our financial position
change if we were to, let's say, right
now
take that schedule and the larger roads,
bridges, and that sort of stuff, we were
to cut that in half.
How dramatically
>> the useful life in half?
» the useful life in half?
>> Correct.
» Correct.
>> I mean, it depends on a lot of different
» I mean, it depends on a lot of different
factors, but it could it could increase,
like your annual amortization expense
was 2.2 million in in 2025, it could
double that in theory.
>> And that's kind of, I think,
» And that's kind of, I think,
the the the point is that
maybe I my my understanding of
accounting principles is somewhat
limited, but what I gather from this is
if we were to reduce the amortization
time or period, that would actually show
that we have
less money in the bank.
In a way, I mean,
it's not going to it's very simplified.
>> Yeah, it's not going to show less money
» Yeah, it's not going to show less money
in the bank because amortization isn't a
cash transaction.
>> I I didn't mean like
» I I didn't mean like
in the bank bank. What I meant is our
our financial position would be weaker.
I guess is what I'm saying, because our
total net worth would be a whole lot
less or significantly less because the
reduced amount of amortization time,
which means that perhaps some of the
bridges that are still on the books for
another 20 years left in them now would
be zero, so that would mean their value
is $0 as opposed to
$200,000. Just using an arbitrary
>> The accumulated surplus would definitely
» The accumulated surplus would definitely
be lower.
>> So,
» So,
>> If your if your
» If your if your
asset period was reduced.
>> And to this point, I think this is a
» And to this point, I think this is a
very important and good exercise for us
to
if nothing else comes of today's
meeting,
this was worth my while just to see that
it's there, that schedule is there, and
how
I guess outdated it is, and how
inaccurate it is considering what the
reality is out there in terms of
usefulness and so on. So, yes, thank you
for pointing this out because this is a
good thing. We need to change this
because I think the next year's audit
will be or should be significantly
different. Not necessarily for the
better for the township, but
Thank you.
>> Okay, thank you. You're welcome.
» Okay, thank you. You're welcome.
>> Thank you.
» Thank you.
>> You too.
» You too.
It's okay. Teamwork, no?
>> And not not to belabor this point, but
» And not not to belabor this point, but
note three that Counselor Meadows
referred to are letters of credit held
by the municipality, not debt that we
have committed to the bank. So, I just
wanted to make sure that we were okay on
that.
Um so, on the statement of financial
position,
um I think we had finished talking about
tangible capital assets, and the only
other item I wanted to mention there is
that uh prepaid and expense prepaid
expenses and inventory were up. Um as
you're all well aware, we changed our
insurance during the year, and we're now
part of the of the county. Um
I don't want to call it the county
policy, the county program, county pool
is perfect.
>> Um and so, we do have um
» Um and so, we do have um
higher uh prepaid insurance, and you can
see that reflected in the figure there.
So, just uh keep in mind a couple of
figures. So, um
that ending balance of $61 million
uh
in the 2025 column will we will see that
number again
um as we're going through. So, just keep
that number in mind.
Um and to that point, on the very next
page, the statement of operations, again
at the 2025 column, you can see that
same $61 million figure there.
Uh of course, by uh by design, not by
not by accident. Um in terms of revenues
and expenses, I I don't think any big
surprises here. You can You can see that
um taxation revenue was up about a
million dollars year over year, largely
due to assessment. Um government grants
were about $1.4 million dollars than
budgeted. Um you know, it's very common
to see in [clears throat] municipalities
that were pretty conservative when
budgeting those grants because you don't
always know if they're coming or not.
Um, in terms of expenses, um,
that $16.6 million
figure that you see there for actual
2025 includes the $2.2 million of
amortization expense we talked about
earlier.
Um,
salaries and benefits were up about
700,000 and insurance was up as well,
um, due to joining the new uh county
pool.
>> Councillor Medlow?
» Councillor Medlow?
>> Yeah.
» Yeah.
>> Thank you.
» Thank you.
Uh, through the chair.
Uh, with regards to I I was talking to
uh Mr. Andertuck earlier. Uh, just so
that I know the expenses for
environmental services, that includes uh
water and waste water. Is that correct?
>> Yes.
» Yes.
>> Both?
» Both?
>> That is correct. And if you look at note
» That is correct. And if you look at note
22 on page 22,
um,
it it explains that it includes uh the
service provided uh to the municipality
for drinking water and the process and
to clean sewage uh and water system
meets all provincial standards.
>> So, that's the total amount we spent
» So, that's the total amount we spent
>> Also includes waste disposal, garbage
» Also includes waste disposal, garbage
pickup as well.
>> O&M waste disposal pickup.
» O&M waste disposal pickup.
>> Yep. Yep.
» Yep. Yep.
Yep. So, if you look at paragraph D in
note 22,
>> that that's the count that's the county
» that that's the count that's the county
service, isn't that?
I know we pay for it through our well,
the the taxpayers pay for it through
their taxes, but uh
isn't that correct?
>> That's correct. We don't Well, we don't
» That's correct. We don't Well, we don't
have any um
>> We don't have
» We don't have
>> expenses for
» expenses for
>> for for that. It's all through our
» for for that. It's all through our
taxation.
So,
why would our waste
>> Res- residents will residents will pay
» Res- residents will residents will pay
through the taxes that we
uh they're charged from the county for
waste disposal.
It's not part of our expenses and it's
not part of our tax revenues. Part of
the county's.
County oversees waste disposal
and the taxes the
SIPCO
taxes that are we are obligated to
>> Why would that be on our
» Why would that be on our
>> But it's just more of a general
» But it's just more of a general
statement that
>> Well, it's a general statement.
» Well, it's a general statement.
>> It's a general statement that shouldn't
» It's a general statement that shouldn't
be there because we don't the count the
county is
looks after our garbage disposal. We
don't look after our garbage disposal.
>> So, that point can easily be taken out,
» So, that point can easily be taken out,
but I thought that
the most municipalities still have to
pay something related to commercial
waste or something and that's why we've
always kept that line in there.
>> Commercial waste pays for our waste.
» I think through through the chair to
council we can look at it amending the
>> I would appreciate it because it's it's
» I would appreciate it because it's it's
kind of putting a false
>> misleading
» misleading
>> It's a very misleading. So
» It's a very misleading. So
>> No, that's that's easily removed.
» No, that's that's easily removed.
>> Okay, thank you.
And
one more question.
With regards to the health services,
what was
the actual
57861
for?
Is that what we give to the hospital
for?
» I I think that's um
>> for for
» for for
I don't know.
>> care and maintenance of the cemetery is
» care and maintenance of the cemetery is
it not?
>> No.
» No.
>> We we do pay for cemetery maintenance.
» We we do pay for cemetery maintenance.
>> Yeah, but it shouldn't be under health
» Yeah, but it shouldn't be under health
services.
They're dead.
Not health
>> It's not It's not health services.
» It's not It's not health services.
That's
>> That's That's where it is That's where
» That's That's where it is That's where
>> That That be That would be under uh
» That That be That would be under uh
uh
I don't uh recreational cultural
services, not uh health services.
>> I think that when uh you have to prepare
» I think that when uh you have to prepare
the the FIR for the for the ministry,
they have cemeteries under health
services, and that's why we keep it
consistent with that. Because the they
also get a copy of the audited financial
statements along with the FIR.
And so it just keeps it consistent with
the FIR.
>> Can we look any of that cuz uh it's
» Can we look any of that cuz uh it's
we budgeted 7,500
in 2025,
yet our actual is 57,861.
That's something's something's wrong
here.
>> I can speak to that.
» I can speak to that.
>> Sure.
» Sure.
>> Uh thank you, Deputy Mayor Locks, to
» Uh thank you, Deputy Mayor Locks, to
Councillor Meadows. Um that's due to the
grass cutting tender. It was previously
being reflected under parks and rec, and
so that was better reflected about the
actual cost of the maintenance of
cemeteries every year. This year we
divided it out and actually put it under
the cemetery line. So it was an approved
tender by council. It just was all being
reflected under parks and rec, and for
better accounting practices and
transparency, we brought it over to
cemeteries.
>> I recall that.
» I recall that.
>> Uh supplemental.
» Uh supplemental.
>> Sure.
» Sure.
>> So are
» So are
all our grass cutting is under health
services now or just the cemetery
portion?
>> Uh through the chair to Councillor
» Uh through the chair to Councillor
Meadows, just the cemetery portion.
>> Just the cemetery.
» Just the cemetery.
>> Before it was all under parks and rec,
» Before it was all under parks and rec,
and we've pulled out the cemetery
portion and are now reflecting it under
the cemetery line.
>> So it cost us 57,000 for the
» So it cost us 57,000 for the
the cemeteries to be cut?
>> Correct. Care and maintenance of the
» Correct. Care and maintenance of the
cemeteries. In there you'll also see
some maintenance. We do routine
maintenance on the trees and the fencing
as well. Uh spring cleanup after the
winter with the debris.
>> Wow.
» Wow.
And monument repair is also
>> I think it
» I think it
uh it's just that uh
I I look at uh what was budgeted
and they were way off the mark on their
budget for that portion. So,
>> Uh I believe that's when they did change
» Uh I believe that's when they did change
from from it all being grass cutting was
one and then it switched over. So,
obviously it doesn't reflect very
very good on on paper, but
>> Well, we should have Yeah, but we should
» Well, we should have Yeah, but we should
have we should have caught that one when
we were budgeting.
>> budgeted first and then the change came
» budgeted first and then the change came
after. So, that's why it's skewed the
numbers.
>> it was all budgeted for under parks and
» it was all budgeted for under parks and
rec, but just a better reflect the
actual costs, we brought it over to
cemeteries. So, it was all budgeted for
in the overall operating budget. We've
just brought it over to cemeteries to
better reflect the actual cost.
>> And how many Sorry, how many cemeteries
» And how many Sorry, how many cemeteries
do we have in the in the township?
>> Well, we have
» Well, we have
>> Uh thank you through the chair to
» Uh thank you through the chair to
Councilwoman Meadows. We care for the
maintenance of six uh
six
inactive cemeteries and the cemetery are
under the control of the township.
>> Okay. Thank you.
» Okay. Thank you.
>> Yeah, I believe before 7,500 covered the
» Yeah, I believe before 7,500 covered the
cemetery and then the grass cutting
became part of that bill.
>> On this schedule they moved it under
» On this schedule they moved it under
recreation and culture and so on. So,
>> Okay.
» Wow. Okay, Sue. Continue on.
>> We're only on page three of
» We're only on page three of
>> Sorry.
» Sorry.
>> No, we're on No, no,
» No, we're on No, no,
that's what we're here for.
>> The pages that we're covering have the
» The pages that we're covering have the
most meat in them. So, so, it's we're
we're doing great. Um and in fact, I
think we can go to the next page.
Uh the statement of change in net
financial assets,
you know, this is just an arithmetic
exercise to get from the annual surplus
figure that you saw on the on page five
to um
the amount that you see of net financial
assets on page four down to the 2.1
million. So, nothing nothing
earth-shattering there.
Um the statement of cash flow, again,
you'll see that uh $11,700
$700 uh 902 reflected in the um
uh statement of financial position.
Um
just high level, we had net cash from
operations of about 4.7 million. We
spent about 4.2 million on tangible
capital assets. We paid down debt of
about $400,000.
Um
it also shows $914,000
coming in from change in investments,
but really you need to look at the
investment figure in conjunction with
the uh cash figure. And they, you know,
if you add the two of them together year
over year, they only changed by about
$120,000.
So, that 914 basically became part of
year-ending cash balance.
>> [clears throat]
» Uh yeah, sorry.
>> I have just a quick question perhaps to
» I have just a quick question perhaps to
the treasurer.
I'm just curious uh what did we sell
to make $471,000?
In here it says gain on disposal of
tangible capital assets.
What did we dispose for half a million
dollars almost?
>> Some some of our equipment.
» Some some of our equipment.
>> Uh
» Uh
well, if it's amortized, then it's worth
nothing, then how does it worth half a
million bucks?
>> Mr. Andrew Chuck?
» Mr. Andrew Chuck?
>> Uh through through the
» Uh through through the
through the chair, yeah, we we do sell
we would have sold various equipment
throughout the
the year.
>> And it totals to almost half a million
» And it totals to almost half a million
dollars? That's how much you sell?
>> That's a lot.
» Um I can get back to you with a detailed
breakdown of that.
>> I'm curious more than anything else,
» I'm curious more than anything else,
just to like to
>> Yeah, I I'll get back to you with a a
» Yeah, I I'll get back to you with a a
detailed breakdown.
>> all the way.
» all the way.
>> Thank you.
» Thank you.
>> Yep.
» Yep.
>> Sorry, thank you very much.
» Sorry, thank you very much.
>> Okay, Sue.
» Okay, Sue.
>> Okay, next page, the statement of
» Okay, next page, the statement of
remeasurement gains and losses. we've
only been looking at this statement for
the last couple of years. Um
and that $69,000 basically represents
the difference between the cost base of
our investments and what the fair market
value is as of today.
Um so, the investments include some
bonds and they often, you know,
whi- while they're not a bad investment,
their fair market value is always less
until they get closer to maturity. So,
you know, nothing that you should be
worried about on that on that at all.
Um starting on page nine, we get into
the notes of the financial statements.
And I have a couple of of comments. I
don't want to belabor each and every one
of them, but um note two on the top of
page 14,
important to note that of that $11.7
million
cash balance,
you know, the lion's share of that is is
restricted for the obligatory reserve
funds.
So, there's only sort of unrestricted
cash of about 842,000.
» Sorry. Sorry, I got a question. Oh,
go ahead, Counselor Matt. Through the
chair.
Could we go back to page nine, please?
>> Yes.
» Okay, uh
item number C,
uh revenue recognition.
And you have in there, uh included in
user fees are wastewater and water usage
fees.
These fees are recognized as revenue
when the service is rendered. Other user
fees are recognized on an accrual basis
as they become available and measurable.
So, are these fees not measurable? Is
that what you're trying to These
particular fees that we're doing right
now aren't measurable?
>> Sorry, are you referring to the
» Sorry, are you referring to the
wastewater and water usage fees or
>> Uh number I item C. Yeah, included uh,
» Uh number I item C. Yeah, included uh,
water and waste water usage fees.
Okay?
Are you saying uh, currently they're not
measurable those those fees or
>> No, what that's referring to is that
» No, what that's referring to is that
user fees include waste water, water
usage, and then several other user fees.
That's that second third sentence is
referring to those other fees, not water
and waste water.
>> Okay.
» Okay.
And then uh, if you go to item D,
deferred revenue,
>> Mhm.
» Mhm.
>> oblique
» oblique
uh, obligatory reserve funds, revenue
restricted by legislation, regulation,
or agreement, and not available for
general municipal purposes is reported
as deferred revenue on the statement of
financial position.
The revenue is reported on the statement
of operations in the year in which it is
used for that specific purpose.
Uh, why are why are they not why are our
water and waste water rates not in in
deferred revenue?
Because it's it's it's a legislated
revenue,
uh, only uh, water and waste water users
are are supposed to be charged for water
and waste water.
And currently the way it's set up,
uh, it's not.
So, why
>> So, so paragraph D refers to things like
» So, so paragraph D refers to things like
development charges,
um, OC funding,
funds that have not been used yet. Water
and waste water in my mind are a little
bit different because every year you
have all sorts of expenses to offset
that those user fees, that revenue.
Um, and then there's always a
difference, of course, between how much
the water and waste water makes, and
that gets, you know, either put into the
reserve or taken away from the reserve.
>> Right, but that that is that should be
» Right, but that that is that should be
it is a legislated
usage
for the like the rates and when
something like that happens, we then
turn around and charge the people. I
mean, it should be
uh
a deferred revenue.
All right, that's the way I look at it
anyways. Like it's it's legislated only
water and waste water
should have to pay for that, not the
whole community. So, it should be a
defer a deferred revenue.
>> Well, I do know that every municipality
» Well, I do know that every municipality
in Adjala-Tosorontio isn't any
exception. They do track those revenues
and expenses for water and waste water
separately so that they are uh
uh
I don't want to say self-fulfilling, but
but they do just offset each other.
Certainly water and waste water revenue
is not used to offset other operating
expenses of the municipality.
Uh
the
I can I can tell you that other
municipalities in Ontario do not
consider water and waste water deferred
revenue.
Um and and certainly for your
municipality, your discretionary reserve
fund for water and waste water is
actually in a deficit. So, you need to
take in as much money as you can to get
that back into a positive
>> Yeah, but that's that's the problem.
» Yeah, but that's that's the problem.
It's
we're running a deficit in our water and
waste water.
People who are not on water and waste
water are having to pay for it.
Through the loan. Listen, you can rob
Peter to pay Paul. You're it's coming
out of the taxpayer every taxpayer's
pocket and it's coming out of the
And it's and it's
>> going to be repaid.
» going to be repaid.
>> And it and it's coming out of the waste
» And it and it's coming out of the waste
the people who are paying the the the
current water and waste water as well.
So, they're getting billed twice for it.
So, to me it's totally wrong the way
this is happening. So
I and and Brent and I we've had
discussions on that on on several
occasions for the past 12 years. So
>> Some of you and I.
» Some of you and I.
>> Yeah, some of you and I. So and and you
» Yeah, some of you and I. So and and you
know, I I I feel sorry for Brent and
because he's him and staff are stuck
with this
conundrum over water and waste water and
they have been for years.
>> So so my understanding as the auditor
» So so my understanding as the auditor
and Brent may correct me is that the
interest related to that debt for water
and waste water is allocated to that
department so that the other taxpayers
that do not have water and waste water
service are not paying for that. I'm
going to turn it over to Brent to see if
he agrees with me or not, but
» Mr. Anderchuk.
>> Well, with respect to the
» Well, with respect to the
the we're we're talking about the
internal loan.
Um
>> Yes, the internal loan that's uh what? 5
» Yes, the internal loan that's uh what? 5
million?
>> It's about It's about 5 million. So
» It's about It's about 5 million. So
uh we do
>> 1,000. Yeah.
» 1,000. Yeah.
>> For for budget purposes, water and waste
» For for budget purposes, water and waste
waste water revenues only pay for water
and waste water services and expenses.
At the end of the year, and this has
been going on long before I was here,
uh the water and waste water revenues
aren't uh don't cover the water and
waste water expenses.
We have in the last few years borrowing
from the working fund
reserve. And it's and it's it's a it's
borrowing it the the this money is going
to be repaid.
>> Okay. And the working fund is paid for
» Okay. And the working fund is paid for
by who?
>> Uh the working fund uh
» Uh the working fund uh
the the
the money that has been allocated has
come from the surplus in the operating
budget. I can also tell you uh
previously or previously to
uh,
myself becoming treasurer uh,
the, um, the deficit in water and
wastewater was actually paid for out of
different reserves. I I can't quote you
which ones, but prior to me joining uh,
if there was a deficit, an overall
deficit in the water or wastewater
>> And who And who paid Okay, who pays for
» And who And who paid Okay, who pays for
the operating budget each year?
>> Uh,
» Uh,
>> All the taxpayers, correct?
» All the taxpayers, correct?
So, all the taxpayers pay for the
operating budget.
The overages from the operating budget
are going into the working fund, and the
working fund is going to pay for,
uh, the water and the wastewater.
>> On an internal loan that's getting paid
» On an internal loan that's getting paid
back to the taxpayers.
>> loan On an internal loan
» loan On an internal loan
>> We can we can do the same thing every
» We can we can do the same thing every
year
>> But nobody wants to say it. Nobody wants
» But nobody wants to say it. Nobody wants
to sit here on this council and say that
it's the taxpayers that are paying for
it.
>> But they're not paying for it. They're
» But they're not paying for it. They're
lending money to the township to cover
these expenses, which money will be
repaid. It's It's a loan from the
taxpayers, if you want to put it that
way.
>> Can we have a date when it's going to be
» Can we have a date when it's going to be
paid back to the taxpayers then?
>> Well, I mean, I don't have the entire
» Well, I mean, I don't have the entire
every all the books in front of me, but
>> Can we have a some sort of date when
» Can we have a some sort of date when
when the the taxpayers are going to get
a check to
>> we're getting off topic here anyway, so
» we're getting off topic here anyway, so
let us not
>> not It's not in here, so I
» not It's not in here, so I
Anyway, go ahead.
>> Carry on, Sue.
» Carry on, Sue.
>> Okay, where were we? We were on
» Okay, where were we? We were on
>> Page 10, I guess.
» Page 10, I guess.
>> We were on
» We were on
I was up to note two on page 14.
And I'm going to push you ahead to note
eight on page 16.
Uh, both note eight and note nine.
Anytime you pick up a
a financial statement, municipal or
otherwise, you want to look for a note
that that references contingencies or
lawsuits and commitments. Um, these
notes have just been updated for the the
year. They're not new. They certainly
were in the statements last year, but
just to bring them to your attention.
And the next note I'd like to talk about
is note 16 at the top of page 20.
You've all heard me year after year talk
about that this is my favorite note, and
it comes back to that $61.4 million
figure that we saw on page four of the
financial statements.
>> Sorry, what page?
» Sorry, what page?
>> Uh page 20, note 16 at the very top.
» Uh page 20, note 16 at the very top.
>> Accumulated surplus.
» Accumulated surplus.
>> Yeah, the accumulated surplus.
» Yeah, the accumulated surplus.
>> Accumulated surplus. Okay, got you.
» Accumulated surplus. Okay, got you.
>> Yeah. So, that's that same $61.4 million
» Yeah. So, that's that same $61.4 million
that we've seen a couple times in the
financial statements.
So, important to note that that of that
$61.4 $53.8
million is invested in tangible capital
assets.
There's about just shy of $5.5 million
in reserves and reserve funds. Um and
then you've got your breakdown at the
very top there of the general area
taxation surplus with the unfunded
liabilities for the asset retirement
obligations and the employee future
benefits.
So, just important to note, especially
with it being a campaign year,
uh important for people to know that you
know, the municipality does not have
$61.4 million of reserves or cash or any
of those things. It's broken down in in
these amounts.
>> Right.
» Um
and then last but not least, I just
wanted to just in general terms talk
about the schedules at the back.
Schedule one is on page 23.
And this gives you a detailed breakdown
of the reserves, the discretionary
reserve funds, as well as the obligatory
reserve funds.
Schedule two and three gives you more
details on the tangible capital assets.
Schedule two on page 24 breaks down the
tangible capital assets between land,
buildings, equipment, vehicles, and so
on.
Um
schedule three on page 25 uh segments
the tangible capital assets between
departments, general government,
protection, transportation,
environmental.
And then, last but not least, schedule
four is the schedule of segmented
revenues and expenses, and it shows a
comparative of the revenues and expenses
by department, 2025 compared to 2024.
And those figures that you see there
um at the bottom of the 2025 and 2024
columns on the far right, 2.5 million
and 3.2 million, those tie back into
page five to the statement of
operations.
>> Councillor Menard?
» Councillor Menard?
>> Yeah.
» Yeah.
Uh Brent, just got a question for you.
With all uh two capital
uh that's uh all the brackets down there
going into the reserves, is that
which funds are they coming from?
>> Sorry, what page
» Sorry, what page
>> what page are you discussing?
» what page are you discussing?
>> Oh, sorry, page 23, schedule one.
» Oh, sorry, page 23, schedule one.
>> Okay.
» And everything that's in the bracket
under I think there's 2 million
323 431.
Is that coming would that be coming out
of uh our working fund?
>> Uh through the chair to
» Uh through the chair to
uh Councillor Menard. No, it
the 2.3 million is uh for uh payment
from the reserves
for the various capital projects, and
the funding sources for those negative
for those numbers in brackets
uh is in the reserve line, so
>> So, those
» So, those
>> For example, the fire for the fire
» For example, the fire for the fire
department, we have
914
uh thousand dollar not 915,000 dollars
and that is funding for
um
coming out of the fire reserve to fund
fire capital projects.
>> Okay.
Oh, the working
>> working fund working fund
» working fund working fund
>> working fund, we fund it capital
» working fund, we fund it capital
projects from the working fund of about
19,000 dollars.
>> Okay.
Got you.
Okay, thanks.
Casey
>> That's the end of my comments, but I'm
» That's the end of my comments, but I'm
happy to entertain further questions and
of course all the difficult ones will be
directed to the treasurer.
>> Of course.
» Of course.
Um
So, is there any further questions?
>> I was I just have one
» I was I just have one
page 16.
I was just wondering
uh
Brent, you mentioned that uh
with regards to the contracts with
regards to
uh Colgan are separate than from the
other ones for for Aqua.
How's How's the How's that a like our
our contract for for Aqua
for [clears throat] Col the Colgan
wastewater treatment plant is 453 815
plus a 17.65 management fee
and
an annual reconciliation to actual
charges, which we talked about earlier.
Which we we we're getting a a refund
back of 141,000.
Um
What's the water agreement stipulated an
annual price of 56,800?
» Uh the uh through the through the chair
to counselor Meadows, that the $56,000
is
uh
I consider it an an addendum with Aqua,
so that's for the additional the
additional they're charging above the
the original contract for the additional
infrastructure that was installed in
tribute by tribute.
>> Because there's more in
» Because there's more in
>> There's more there's more infrastructure
» There's more there's more infrastructure
for them to maintain.
>> Okay, so
» Okay, so
>> And that will
» And that will
My understanding is uh
the the contract with Aqua will be
uh
renegotiated, so there's just one
contract.
>> Okay, so when when like it this is a a
» Okay, so when when like it this is a a
5-year term for this wastewater
treatment agreement with Aqua.
So it's it doesn't end until October
27th, 2029.
So
we haven't assumed
uh the wastewater treatment plant yet,
have we?
>> Correct.
» Correct.
>> So if we haven't assumed it,
um
or how how can we bind in a a contract
with them for that wastewater treatment
plant for for that length of time? You
know what I mean? Because we haven't
assumed the plant yet.
>> Uh
» Uh
Correct. So I'm I'm sorry, what is what
is your question?
>> I I guess my question is how can we have
» I I guess my question is how can we have
an agreement till
October 27th, 2029?
Cuz I I'm sure we're going to be
assuming that plant soon, but
we might not have Aqua or
we we may not assume it. We we don't
know, so
it's not our plant.
I guess is what I'm getting at.
So, how can we have a contract with
something that's not ours?
>> Well, we have the main contract with
» Well, we have the main contract with
with Aqua, I believe.
And then we have the a separate contract
for
the Colgan wastewater treatment plant.
>> I guess what I'm saying is why are why
» I guess what I'm saying is why are why
are the taxpayers paying for
uh
main- let's say something breaks down
there maintenance costs for for the
wastewater treatment plant when we don't
own it.
>> Well, we are we are also collecting the
» Well, we are we are also collecting the
revenue for the wastewater treatment
plant.
>> being Is it being recovered? You recover
» being Is it being recovered? You recover
it from the developer.
>> Well,
» Well,
the way they
>> No, but I'm saying like if there's a
» No, but I'm saying like if there's a
maintenance Let's say the
>> are collecting the
» are collecting the
Aqua is maintaining the plant and we are
collecting the revenue that's being
generated from the
>> And we're we're we're paying for any
» And we're we're we're paying for any
uh thing that breaks down in that plant
right now?
Or is
>> My understanding because
» My understanding because
and like I could be wrong, but my
understanding is since we haven't
assumed the plant, if something breaks
down, it's the responsibility of the
developer.
>> Is it so anything any maintenance any
» Is it so anything any maintenance any
main- cuz in the Well, I'm just I'm just
curious because it says in in here
uh with regards to operations and
maintenance.
So, if we're paying for maintenance
>> We are.
» We are.
>> Then
» Then
>> But the maintenance is not the same as
» But the maintenance is not the same as
repair. Maintenance is
upkeep. Upkeep just to make sure that
the filter that's worth 50 bucks is
okay.
>> There's no filters in there for 50
» There's no filters in there for 50
bucks. They're a million bucks. So,
that's why I'm kind of concerned when
we're we're going to be paying for
maintenance.
» Well, the the way I read this is that we
probably had to have an obligation
towards the province
to enter into a
maintenance agreement with Aqua because
the system is running but then all the
repair costs are being
forced or paid for by the developer.
That's kind of how I read it and then
this these terms the so that the the
contract terms and the cost of the
contract is being
funded by the revenue that comes in from
the people who live in Colgan who pay
the monthly uh
switch fees.
>> Is there any way
» Is there any way
I can get a copy of that agreement?
Or is that
not
>> You would have you would have signed off
» You would have you would have signed off
on the agreement but I can forward a
copy of the
the agreements.
>> I I I would appreciate that. Thank you.
» I I I would appreciate that. Thank you.
>> No, there's a confusion there because it
» No, there's a confusion there because it
also it all all of the waste and water
and waste water systems
I understand there's a stipulation for
Colgan there but the 5-year term two
you're right. But the 5-year term is in
a generality of just just Colgan.
That's what I'm
I understand where you're coming from.
I'm wondering if this statement is
off. general
5 years including what's going on.
>> If you read the entire paragraph there,
» If you read the entire paragraph there,
it does state that there is a pre there
there are two contracts we are
discussing.
>> Correct.
» Correct.
>> The first one from January 22 to
» The first one from January 22 to
December 30 of 26 is for what was before
Colgan. Naturally because it was dated
to 2022, it couldn't capture Colgan back
then because there was no Colgan in
2022, right? So that's why I think
instead of breaking that contract so
close to the expiration date, the
township just entered into a new
contractual agreement with Aqua just for
Colgan specifically.
That's how I read it.
>> Yeah, well I I I draw I I just like to
» Yeah, well I I I draw I I just like to
>> Well, we can get clarification.
Do
>> you have any other answers?
» you have any other answers?
>> I'm good. Thank you.
» I'm good. Thank you.
>> Um,
» Um,
so I guess
is
from our discussion earlier, we're going
to
change the language on the uh tangible
assets.
>> Yeah.
» Yeah.
>> I hope so.
» I hope so.
>> I think for that we need to change
» I think for that we need to change
policy.
>> I just Yeah, I just want to
» I just Yeah, I just want to
>> The only change I noted to the draft
» The only change I noted to the draft
financial statement is to remove the
last sentence in note 22D.
And it reads, "It also consists of
providing waste disposal to citizens."
That is coming out. That's the only
change to the audited financial
statement that I gathered from our
discussion.
>> Okay.
» Okay.
Like personally, I
Ideally, we don't need to look into
>> the asset
» the asset
>> the wording on the assets
» the wording on the assets
>> uh for future Like could we put that as
» uh for future Like could we put that as
a motion or an amendment amendment to
the motion, Robin, that uh
uh when it's brought to council to look
into to that for the next audit? Am I
clear?
>> Uh through the chair to Councillor
» Uh through the chair to Councillor
Meadows, uh I would say the council
meeting would be the most appropriate
place because uh as the auditor has
indicated, it is a change in policy. So,
at the time accept the financials for
this year and then provide direction to
staff to review the changeable assets
going forward.
>> Councillor Meadows.
» Councillor Meadows.
>> Yeah, just So, to that point uh through
» Yeah, just So, to that point uh through
the chair to Madam Clerk, could we get a
copy of the policy? I don't know if
that's available.
So, that we see exactly what we are
dealing with and what's in that policy
that we are
>> changing
» changing
>> proposing to change needs to be changed
» proposing to change needs to be changed
or
>> Yes, we can have that the treasurer uh
» Yes, we can have that the treasurer uh
we can have the treasurer circulate that
to you for information.
>> Thank you.
» Thank you.
>> Perfect.
» Perfect.
>> Perfect. All right, if there's no
» Perfect. All right, if there's no
further questions,
thank you, Sue.
>> Thank you very much.
» Thank you very much.
>> Nice to see you once once a year.
» Nice to see you once once a year.
>> Thank you, Sue.
» Thank you, Sue.
>> [laughter]
» [laughter]
>> Um,
» Um,
so where were we here? Item 5.2.
For I didn't Okay.
5.3. So, I had Councillor Borrows so we
move it so Councillor Meadows.
The recommendation reads reads that the
draft audited financial statements for
the year 2025 be received.
And that the audit committee recommends
that council approve the draft audited
financial statements for the year 2025.
Amend the motion.
>> Councillor Meadows suggested that to put
» Councillor Meadows suggested that to put
an amendment to this statement there
that pending.
>> Well,
» Well,
ideally this audit this
This This This is your statement should
be received and then we're going to
change policies coming further.
>> For the next next council meeting. For
» For the next next council meeting. For
the next For the council meeting. This
is just a This is just to bring this
this forward.
>> Which we've Yeah, we've decided we're
» Which we've Yeah, we've decided we're
doing that.
We've given directions. So, all those in
favor?
And that is carried.
And now we'll move to item six,
adjournment. I now declare this meeting
be adjourned at
6:58 p.m.
Thank you very much everyone.
» Mhm.