[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.