town of white city

Town of White City

Corporate Services Committee Meeting - 06 May 2019 Agenda

Monday, May 6, 2019 at 3:30 PM Council Chambers

Page

1. CALL TO ORDER 2. AGENDA 2.1. May 06, 2019 Corporate Services Committee Meeting Agenda 3. STAFF REPORTS 3.1. Finance Current Activities

CII 19-007 - Finance Current Activities

2 - 4

3.2. 2018 Audited Financial Statements

CDI 19-051 - 2018 Audited Financial Statements

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4. ROUNDTABLE 5. ADJOURNMENT

Insurance coverage for the Town of White City (town) is currently provided by SUMAssure (represented

by the broker Aon Reed Stenhouse). The town has carried this coverage for many years. The town was

approached by Hordos Insurance Brokers (Hordos) in Emerald Park to provide a quote with the hopes of

gaining our business. Hordos provided the town with a quote of coverage from Frank Cowan Company

(FCC). A review of the proposed quote was undertaken compared to our current insurance policy,

coverage, and brokers in order to determine if it was beneficial for the town to switch from the current

insurance broker whom they have been with for years, to a local insurance broker eager for the town’s

business. The result of the review determined that the town should remain with our current insurance

provider for the time being with our current agreement.

The coverage provided by each insurance broker is similar in the majority of areas. The deductible

commonly used for most areas is $2,500.

Currently the town has a contract with Suncorp to complete an annual appraisal at a cost of

approximately $2,300 (2018: $2,358, 2017: $2,079). The town is locked in to a contract until December

31, 2021 with Suncorp. The insurance quote from FCC included annual appraisals in their total annual

premium, rather than an additional cost to the town from a third party.

The table below highlights the financial impact between the current and proposed coverage. As seen

below, the financial impact is a very minimal savings of $545 by remaining with our current provider.

In accordance with the town’s SUMAssure subscription agreement, termination takes effect one year

after the expiry date in the year the termination letter is sent. If the town decided to terminate the

agreement at this time, it would not take effect until December 31, 2020. Should the town wish to

terminate the agreement in the future, a written letter must be sent to SUMAssure the calendar year

prior to when the agreement is to be terminated.

$ 39,995 37,320$

2,400 2,230

$ 42,395 39,550$ 2,845$

- 2,300

$ 42,395 41,850$ 545$

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SUMAssure is owned and operated by municipalities and is used by over 200 municipalities in

Saskatchewan. For subscribing municipalities participating in the program, all excess revenues over paid

premiums are held as collective equity. These funds are reinvested in the plan to improve or expand

coverage, help subscribers mitigate risks, reduce premium fluctuations or returned to participating

municipalities in the form of community investment grants. To date, the town’s accumulated share of

these funds is estimated at approximately $26,882. If the town terminates the subscribers’ agreement,

these funds would be forfeited.

SUMAssure provides subscribers with property, liability, crime and equipment breakdown coverage.

SUMAssure also offers additional optional coverage, if requested by the municipality, including ability to

access free legal assistance advice, comprehensive options for accident, environmental, cyber and

umbrella liability coverage. Currently, complete comprehensive reviews are not performed, however the

annual appraisals completed by Suncorp do involve a review of capital purchases and sales annually in

order to ensure that all items are captured, up to date, and insurance coverage is in place.

The current service levels with our contacts at SUMAssure have always been readily available,

professional and top quality. They are always willing to meet with council or administration to discuss

SUMAssure and the town’s coverage in greater detail.

When it comes to claims handling, SUMAssure contracts with local independent claims adjusters.

Hordos has partnered with FCC to provide a quote for core insurance coverage. FCC is a leader in

municipal insurance programs, including risk management and claims services in Canada. FCC is located

in Ontario, and their presence in the Saskatchewan municipality business is limited. Although Hordos is a

broker local to the area, FCC is not local and therefore it may be concerning from a service standpoint,

however the town would have a day to day contact in the area to look after the account.

The current quote provided was very comparable in the coverage, however the work would be a

continuous and comprehensive review of the insurance program if Hordos was awarded the town’s

business in the future. They would work with the Town and FCC to do a comprehensive review of the

property and operations to maximize risk management look for savings in premiums if available.

The town would also have full access available to Frank Cowan’s “Risk Management Centre of

Excellence”. This resource is a place to find educational information on just about any topic related to

the town’s insurance program or operations. The town does have similar access to mitigating risk

through risk audits, workshops and bulletins with SUMAssure, which is currently funded by the

reinvestment of the excess revenues over paid premiums.

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Although the quote provided by Hordos provides alike coverage, as well as many additional benefits, at

this time it is not feasible to switch from our current agreement with SUMAssure. The financial impact is

virtually nonexistent. As well, if the town requested to terminate the agreement now with SUMAssure it

would not take effect for a year and a half until December 31, 2020 and we would lose the equity we

have built up. A review should take place again in the future as the town continues to expand and

acquire additional assets.

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2018 Draft Audited Financial Statements

THAT the draft audited financial statements for the period ending December 31, 2018 be accepted as

presented.

The draft audited financial statements (Appendix A) for the period ending December 31, 2018 were

prepared by Dudley & Company LLP. The financial statements include the independent auditors’ report,

financial statements, notes to the financial statements, and supporting schedules. A management

representation letter, management’s responsibility and financial statement approval form (Appendix B)

has also been included in the draft audited financial statement package provided by the auditor. If

council wishes to approve the draft audited financial statements, these letters and forms must be

reviewed and signed by the Mayor and the Town Manager.

Approving the draft audited financial statement will help to achieve the

strategic plan’s responsive and progressive goal. In particular, it will achieve the

objective to have responsible management of the Town’s financial and other

resources, ensuring transparency and accountability.

The field work for the 2018 audit was completed by Dudley & Company in

March 2019. Their review resulted in five adjusting journal entries for the year,

two of which were requested by the finance department as an internal

reallocation and recognition of a previous deferral as revenue.

The 2018 draft audited financial statements present a surplus of $546,361 of

revenues over expenses with the accumulated surplus totaling $37,109,249. The

debt limit of the municipality is $4,705,756 with the current long-term debt

balance being $5,657,850.

Items of note on the Statement of Financial Position include:

• An increase in cash and investments of $516,708 to $5,276,436 relates to debt

of $3.5 million issued for the wastewater treatment plant plus the operating

surplus, less cash used for capital asset purchases and long-term investments.

• Municipal taxes receivable has been reduced by $38,998 due to additional tax

enforcement efforts made throughout the year by administration.

• Other accounts receivable has increased by $907,050. This largely relates to a

big receivable balance owing for development levies that was received on

January 28, 2019. This also ties to the increase in deferred revenue.

• Long-term financial assets are largely made up of the Wastewater

Management Authority loan, which increased by $2 million.

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• Long-term debt increased by $3.5 million, less debt repayment, for the loan

for the wastewater treatment plant.

Items of note on the Statement of Operations include:

• Total revenues budgeted for 2018 was $7,091,944. Actual revenues totaled

$6,028,112 for the year. All areas were close to budget except for conditional

grants. The largest difference in this category relates to lot development fees

that were budgeted to be recognized for the repayment of internal

borrowing. As the town did not receive as many development fees as

expected during the year, the repayment of internal borrowing was limited. A

breakdown of conditional grants budgeted, actual and prior results is included

in the table below.

• Total expenses budgeted for 2018 was $6,155,101. Actual expenses resulted

in a total of $6,268,094 for the year. All departments were either under

budget, or close to, with the exception of General Government Services. This

department went over budget in the area professional/contractual services.

• Capital grants and contributions are revenue related specifically to capital

projects. The total budgeted was $516,912 but resulted in $786,343 for the

year. The excess above budget largely relates to lot development fees being

recognized for the town shop expansion project. This project was budgeted to

be funded by a loan, however it was determined that it could be funded

internally, as well as development levies previously deferred for fire

protection services determined not permissible were recognized as revenue

towards this project. A breakdown of these totals is included in the table

below.

Department Description Budget Actual Prior

General Government Local - Cap Grants 400 - 400

Protective Services Local Government - RM Fire Grant 104,000 104,810 88,433

Protective Services Operating Donations - - 952

Public Works Student Employment - Summer Student Grant 7,200 5,130 7,290

Environmental Services Recycling Grant 14,000 14,274 13,841

Recreation & Cultural Services

Sask Culture, SE Connection, SPRA, Community

Initiatives Fund Grant 4,000 4,000 16,160

Recreation & Cultural Services Local Government - RM Rec Grant 13,000 18,000 13,000

Recreation & Cultural Services Parks & Recreation Fundraising 14,100 10,259 12,694

Recreation & Cultural Services Sask Lotteries 25,600 25,544 25,544

Utility Services

Lot development fees recognized for UT

projects - repayment of internal borrowing for

Saskwater payment, WWA lagoon upgrade

debenture, WWTF debenture 1,393,000 245,006 610,850

1,575,300 427,023 789,164

Conditional Grants

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Clause 185(1) of The Municipalities Act states: On or before June 15 of each

year, a municipality shall prepare financial statements of the municipality for

the preceding financial year in accordance with the generally accepted

accounting principles for municipal governments recommended from time to

time by Chartered Professional Accountants of Canada.

Per Clause 185(3) of The Municipalities Act , the financial statements, or a

summary of them, and the auditor’s report of the financial statements, shall be

publicized in the manner the council considers appropriate by September 1 of

the year following the financial year for which the financial statements and

report have been prepared. It is recommended that the financial statements be

posted on the town website upon acceptance, as well as a summary shall be

included in the annual report.

Department Description Budget Actual Prior

Protective Services Capital donations - 24,522 -

Protective Services

Lot development fees recognized for PS capital

projects - shop expansion project 26,500 - -

Public Works Gas Tax 117,212 115,723 115,155

Public Works Corporate contributions - - 2,198

Public Works

Lot development fees recognized for TS capital

projects - shop expansion project - 404,849 -

Public Works Local Improvement 45,700 - 83,107


Lot development fees recognized for RC capital

projects - playstructure, tennis court upgrades,

park pavilion 253,800 118,590 105,000


Other donations for tangible capital assets -

Sun Valley Land Ltd. - 20,754 -

Recreation & Cultural Services Trans Canada Trail - 28,205 -

Recreation & Cultural Services Library committee, capital project - - 43,653

Utility Services

Lot development fees recognized for UT capital

projects - Repayment of internal borrowing for

water distribution line upgrade 73,700 73,700 37,571

516,912 786,343 386,684

Capital Grants

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TOWN OF WHITE CITYFinancial StatementsDecember 31, 2018

INDEX

Page 1 Independent Auditors' Report

Page 3 Statement of Financial Position

Page 4 Statement of Operations

Page 5 Statement of Changes in Net Financial Assets

Page 6 Statement of Cash Flows

Pages 7 - 15 Notes to the Financial Statements

Page 16 Schedule of Taxes and Other Unconditional Revenue

Pages 17 - 20 Schedule of Operating and Capital Revenue by Function

Pages 21 - 23 Schedule of Total Expenses by Function

Pages 24 - 25 Schedule of Segment Disclosure by Function

Page 26 Schedule of Tangible Capital Assets by Object

Page 27 Schedule of Tangible Capital Assets by Function

Page 28 Schedule of Accumulated Surplus

Page 29 Schedule of Mill Rates and Assessments

Page 30 Schedule of Council Remuneration

CDI 19-051 Appendix A

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INDEPENDENT AUDITORS' REPORT

To the Mayor and CouncillorsTown of White City

OpinionWe have audited the financial statements of the TOWN OF WHITE CITY, which comprise the

statement of financial position as at December 31, 2018 and the statements of operations, changes innet financial assets and cash flows for the year then ended, and notes to the financial statements,including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the municipality as at December 31, 2018, and its financial performance and itscash flows for the year then ended in accordance with Canadian public sector accounting standards.

Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards.

Our responsibilities under those standards are further described in the Auditors' Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the municipality inaccordance with the ethical requirements that are relevant to our audit of the financial statements inCanada, and we have fulfilled our other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

Responsibilities of Management and Those Charged with Governance for the Financial StatementsManagement is responsible for the preparation and fair presentation of the financial statements

in accordance with Canadian public sector accounting standards, and for such internal control asmanagement determines is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing themunicipality's ability to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unless management intends to dissolve themunicipality or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the municipality's financialreporting process.

Auditors' Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'report that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with Canadian generally accepted auditing standardswill always detect material misstatement when it exists. Misstatements can arise from fraud or errorand are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, weexercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due

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TOWN OF WHITE CITYto fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the over-ride of internal control.

Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the municipality's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the municipality's ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are requiredto draw attention in our auditors' report to the related disclosures in the financial statements or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors' report. However, future events or conditionsmay cause the municipality to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

_________________________________Dudley & Company LLPChartered Professional Accountants

Regina, Saskatchewan

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TOWN OF WHITE CITYStatement of Financial Position

As at December 31, 2018Statement 1

2018 2017ASSETSFinancial Assets

Cash & Investments (Note 2) $ 5,276,436 $ 4,759,728Taxes Receivable - Municipal (Note 3) 161,576 200,574Other Accounts Receivable (Note 4) 1,520,001 612,951Land for Resale - -Long-Term Financial Assets (Note 5) 8,367,075 6,402,618Debt Charges Recoverable - -

Total Financial Assets 15,325,088 11,975,871

LIABILITIESBank Indebtedness - -Accounts Payable (Note 6) 1,021,973 1,292,437Accrued Liabilities Payable - -Utility Deposits 118,620 124,320Deferred Revenue (Note 7) 2,156,781 1,798,172Accrued Landfill Costs - -Other Liabilities - -Long-Term Debt (Note 8) 5,657,850 2,674,907Lease Obligations - -Liability for Contaminated Sites - -

Total Liabilities 8,955,224 5,889,836

NET FINANCIAL ASSETS 6,369,864 6,086,035 -

Tangible Capital Assets (Schedules 6, 7) 30,701,072 30,451,128Prepayment and Deferred Charges 38,313 25,725Stock and Supplies - -Other - -

Total Non-Financial Assets 30,739,385 30,476,853

Accumulated Surplus (Deficit) (Schedule 8) $ 37,109,249 $ 36,562,888 -

The accompanying notes form an integral part of these financial statements.

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TOWN OF WHITE CITYStatement of Operations

For the year ended December 31, 2018Statement 2

2018 Budget 2018 2017Revenues

Taxes and Other Unconditional Revenue (Schedule 1) $ 3,277,944 $ 3,274,063 $ 3,148,057Fees and Charges (Schedule 4, 5) 2,170,000 2,164,681 2,273,967Conditional Grants (Schedule 4, 5) 1,575,300 427,023 789,164Tangible Capital Assets Sales - Gain (Schedule 4, 5) 3,000 9,634 28,805Land Sales - Gain (Schedule 4, 5) - - -Investment Income and Commissions (Schedule 4, 5) 61,000 108,625 70,117Other Revenues (Schedule 4, 5) 4,700 44,086 10,507

Total Revenues 7,091,944 6,028,112 6,320,617

Expenses

General Government Services (Schedule 3) 1,223,901 1,432,131 851,737Protective Services (Schedule 3) 427,100 386,821 361,943Transportation Services (Schedule 3) 982,800 896,452 738,056Environmental and Public Health Services (Schedule 3) 250,800 245,620 218,159Planning and Development Services (Schedule 3) 320,000 339,330 407,781Recreation and Cultural Services (Schedule 3) 727,800 718,838 594,205Utility Services (Schedule 3) 2,222,700 2,248,902 2,143,863

Total Expenses 6,155,101 6,268,094 5,315,744

Surplus (Deficit) before Other Capital Contributions 936,843 (239,982) 1,004,873

Capital Grants and Contributions (Schedule 4, 5) 516,912 786,343 386,684

Surplus (Deficit) of Revenues over Expenses 1,453,755 546,361 1,391,557

Accumulated Surplus (Deficit), Beginning of Year 36,562,888 36,562,888 35,171,331

Accumulated Surplus (Deficit), End of Year $ 38,016,643 $ 37,109,249 $ 36,562,888


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TOWN OF WHITE CITYStatement of Changes in Net Financial Assets


2018 Budget 2018 2017

Surplus (Deficit) $ 1,453,755 $ 546,361 $ 1,391,557

(Acquisition) of tangible capital assets (1,213,910) (1,012,353) (1,084,281)

Amortization of tangible capital assets 685,300 760,446 722,548

Proceeds of disposal of tangible capital assets 3,000 11,597 28,805

Loss (gain) on disposal of tangible capital assets (3,000) (9,634) (28,805)

Surplus (Deficit) of capital expenses over expenditures (528,610) (249,944) (361,733)

(Acquisition) of supplies inventories - - -

(Acquisition) of prepaid expense - (12,588) (9,371)

Consumption of supplies inventory - - -

Use of prepaid expense - - -

Surplus (Deficit) of expenses of other non-financial over expenditures - (12,588) (9,371)

Increase/Decrease in Net Financial Assets 925,145 283,829 1,020,453

Net Financial Assets - Beginning of Year 6,086,035 6,086,035 5,065,582

Net Financial Assets - End of Year $ 7,011,180 $ 6,369,864 $ 6,086,035


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TOWN OF WHITE CITYStatement of Cash Flows


2018 2017Cash provided by (used for) the following activitiesOperating:Surplus (Deficit) $ 546,361 $ 1,391,557

Amortization 760,446 722,548Loss (gain) on disposal of tangible capital assets (9,634) (28,805)

1,297,173 2,085,300Changes in assets / liabilities

Taxes Receivable - Municipal 38,998 (431)Other Receivables (907,050) (5,789)Land for Resale - -Other Financial Assets - -Accounts and Accrued Liabilities Payable (270,464) 74,702Deposits (5,700) (4,800)Deferred Revenues 358,609 (180,616)Other Liabilities - -Stock and Supplies for Use - -Prepayments and Deferred Charges (12,588) (9,371)Other - -

Net cash from (used for) operations 498,978 1,958,995

Capital:Acquisition of Capital Assets (1,012,353) (1,084,281)Proceeds from the Disposal of Capital Assets 11,597 28,805Other Capital - -

Net cash from (used for) capital (1,000,756) (1,055,476)

Investing:Long-Term Investments (1,964,457) (1,709,395)Other Investments - -

Net cash from (used for) investing (1,964,457) (1,709,395)

Financing:Long-Term Debt Issued 3,500,000 -Long-Term Debt Repaid (517,057) (559,132)Other Financing - -

Net cash from (used for) financing 2,982,943 (559,132)

Increase (Decrease) in cash resources 516,708 (1,365,008)

Cash and Investments - Beginning of Year 4,759,728 6,124,736

Cash and Investments - End of Year $ 5,276,436 $ 4,759,728


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TOWN OF WHITE CITYNotes to the Financial Statements

For the year ended December 31, 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe consolidated financial statements of the municipality have been prepared by management inaccordance with Canadian public sector accounting standards (PSAS) as recommended by theChartered Professional Accountants of Canada (CPA Canada).

Significant aspects of the accounting policies adopted by the municipality are as follows:

Basis of Accounting:The financial statements are prepared using the accrual basis of accounting. The accrual basis ofaccounting requires revenues to be recognized as they become available and measurable andexpenses are recognized as they are incurred and measurable as a result of the receipt of goodsand services and the creation of a legal obligation to pay.

(a) Reporting Entity:The financial statements consolidate the assets, liabilities and flow of resources of themunicipality. The entity is comprised of all of the organizations that are owned or controlled bythe municipality and are, therefore, accountable to the Council for the administration of theirfinancial affairs and resources.

Entities included in these financial statements are as follows:

Entity Basis of recordingWhite City Parks and Recreation Committee Consolidated

All inter-organizational transactions and balances have been eliminated.

(b) Collection of Funds for Other Authorities:Collection of funds by the municipality for the school board are collected and remitted inaccordance with relevant legislation.

(c) Government Transfers:Government transfers are the transfer of assets from senior levels of government that are notthe result of an exchange transaction, are not expected to be repaid in the future, or the result ofa direct financial return. Government transfers are recognized as either expenses or revenues inthe period that the events giving rise to the transfer occur, providing:

a) the transfer is authorized;b) eligibility criteria have been met by the recipient; andc) a reasonable estimate of the amount can be made.

Unearned government transfer amounts received but not earned will be recorded as deferredrevenue.

Earned government transfer amounts not received will be recorded as an amount receivable.

(d) Deferred Revenue:Fees and charges: Certain user charges and fees are collected for which the related serviceshave yet to be performed. Revenue is recognized in the period when the related expenses areincurred or services performed.

(e) Local Improvement Charges:Local improvement projects financed by frontage taxes recognize the taxes as capital revenue inthe period the project is undertaken and the prepayments are accepted. Any frontage taxes notprepaid are reported as a long-term asset to be reduced by the principle portion of each annualfrontage tax levy.

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(f) Net-Financial Assets:Net-Financial Assets at the end of an accounting period are the net amount of financial assetsless liabilities outstanding. Financial assets represent items such as cash and those otherassets on hand which could provide resources to discharge existing liabilities or finance futureoperations. These include realizable assets which are convertible to cash and not intended forconsumption in the normal course of operations.

(g) Non-Financial Assets:Tangible capital and other Non-Financial Assets are accounted for as assets by the governmentbecause they can be used to provide government services in future periods. These assets donot normally provide resources to discharge the liabilities of the government unless they aresold.

(h) Appropriated Reserves:Reserves are established at the discretion of Council to designate surplus for future operatingand capital transactions. Amounts so designated are described on Schedule 8.

(i) Property Tax Revenue:Property tax revenue is based on assessments determined in accordance with Saskatchewanlegislation and the formulas, principles, and rules in the Saskatchewan Assessment Manual. Taxmill rates are established annually by Council following the guidance of the Government ofSaskatchewan. Tax revenues are recognized when the tax has been authorized by bylaw andthe taxable event has occurred. Requisitions from other taxing authorities operate as a flowthrough and are excluded from municipal revenue.

(j) Investments:Portfolio investments are valued at cost, less any provision for other than temporary impairment.Investments with terms longer than one year have been classified as other long-terminvestments concurrent with the nature of the investment.

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(k) Tangible Capital Assets:All tangible capital asset acquisitions or betterments made throughout the year are recorded attheir acquisition cost. Initial costs for tangible capital assets that were acquired and developedprior to 2009 were obtained via historical cost information or using current fair market valuesdiscounted by a relevant deflation factor back to the point of acquisition. Donated tangiblecapital assets received are recorded at their fair market value at the date of contribution; these,and the tangible capital assets that are recognized at a nominal value, are disclosed onSchedule 6. The cost of tangible capital assets less any estimated residual value are amortizedover the asset's estimated useful life using the straight-line method of amortization.Amortization is recorded on capital assets beginning in the year of aquisition. The municipality'stangible capital asset useful lives are estimated as follows:

Assets Useful Life

General AssetsLand IndefiniteLand Improvements 10 to 40 yearsBuildings 25 to 40 yearsVehicles and Equipment

Vehicles 5 to 10 years Machinery and Equipment 5 to 20 years

Infrastructure AssetsInfrastructure Assets

Water and Sewer 30 to 100 years Road Network Assets 10 to 60 years

Government contributions: Contributions from governments and others for the acquisition ofcapital assets are reported as capital revenue and do not reduce the cost of the related asset.

Works of Art and Other Unrecognized Assets: Assets that have a historical or culturalsignificance, which include works of art, monuments and other cultural artifacts are notrecognized as tangible capital assets because a reasonable estimate of future benefitsassociated with this property cannot be made.

Capitalization of Interest: The municipality does not capitalize interest incurred while atangible capital asset is under construction.

Leases: All leases are recorded on the financial statements as either a capital or operatinglease. Any lease that transfers substantially all of the benefits and risk associated with theleased asset is classified as a capital lease and recorded as a tangible capital asset. At theinception of a capital lease, an asset and a payment obligation are recorded at an amount equalto the lesser of the present value of the minimum lease payments and the asset's fair marketvalue. Assets under capital lease are amortized on a straight line basis, over their estimateduseful lives. Any other lease not meeting the before mentioned criteria is classified as anoperating lease and rental payments are expensed as incurred.

(l) Landfill Liability:The municipality of TOWN OF WHITE CITY does not maintain a waste disposal site.

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(m) Trust Funds:Funds held in trust for others, under a trust agreement or statute, are not included in thefinancial statements as they are not controlled by the municipality. Trust fund activitiesadministered by the municipality are disclosed in Note 9.

(n) Employee Benefit Plans:

Contributions to the municipality's defined benefit plans are expensed when contributions aredue and payable. Under the defined benefit multiemployer plans, the municipality's obligationsare limited to their contributions.

(o) Measurement Uncertainty:The preparation of financial statements in conformity with Canadian public sector accountingstandards requires management to make estimates and assumptions that affect the reportedamount of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements, and the reported amounts of revenues and expenses during the period.

Accounts receivable are stated after evaluation as to their collectability and an appropriateallowance for doubtful accounts is provided where considered necessary.

The measurement of stock and supplies inventories, if any, are based on estimates of volumeand quality.

The "Opening Assets costs" of tangible capital assets have been estimated where actual costswere not available.

Amortization is based on the estimated useful lives of tangible capital assets.

These estimates and assumptions are reviewed periodically and, as adjustments becomenecessary they are reported in earnings in the periods in which they become known.

(p) Basis of Segmentation / Segment Report:The municipality follows the Public Sector Accounting Board's recommendations requiringfinancial information to be provided on a segmented basis. Municipal services have beensegmented by grouping activities that have similar service objectives (by function). Revenuesthat are directly related to the costs of the function have been attributed to each segment.Interest is allocated to functions based on the purpose of specific borrowings.

The segments (functions) are as follows:

General Government: The General Government segment provides for the administration of themunicipality.

Protective Services: Protective Services is comprised of expenses for Police and Fire protection.

Transportation Services: The Transportation Services segment is responsible for the delivery ofpublic works services related to the development and maintenance of roadway systems andstreet lighting.

Environmental and Public Health: The Environmental segment provides waste disposal andother environmental services. The Public Health segment provides for items relating to publichealth services in the municipality.

Planning and Development: The Planning and Development segment provides forneighbourhood development and sustainability.

Recreation and Culture: The Recreation and Culture segment provides for community servicesPage 10


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through the provision of recreation and leisure services.

Utility Services: The Utility Services segment provides for delivery of water, collecting andtreating of wastewater and providing collection and disposal of solid waste.

(q) Budget Information:Budget information is presented on a basis consistent with that used for actual results. Thebudget was approved by Council on May 7, 2018.

(r) New Accounting Standards:Effective January 1, 2018, the municipality adopted the following new Canadian public sectoraccounting standards. The description of these changes and their impact on the financialstatements is summarized:

PS 2200 Related Party Disclosures defines a related party and establishes disclosuresrequired for related party transactions. Disclosure of information about related party transactionsand the relationship underlying them is required when they have occurred at a value differentfrom that which would have been arrived at if the parties were unrelated, and they have, or couldhave, a material effect on the financial statements. For more information, refer to note 10.

PS 3210 Assets provides additional guidance for applying the definition of assets andestablishing disclosure requirements for assets. Disclosure about the major categories of assetsthat are not recognized is required. When an asset is not recognized because a reasonableestimate cannot be made, the reason(s) for this should be disclosed. The adoption of thisstandard has no impact on the financial statements.

PS 3320 Contingent Assets defines and establishes disclosure standards on the reporting anddisclosure of possible assets that may arise from existing conditions or situations involvinguncertainty. Disclosure is required when the occurrence of the confirming future event is likely.The municipality does not have any reportable contingent assets.

PS 3380 Contractual Rights defines and establishes disclosure standards on contractualrights. Contractual rights are rights to economic resources arising from contracts or agreementsthat will result in both an asset and revenue in the future. The municipality does not have anyreportable contractual rights.

PS 3420 Inter-Entity Transactions establishes standards on how to account for and reporttransactions between public sector entities that comprise a government's reporting entity fromboth a provider and recipient perspective. This standard has no impact on the financialstatements.

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2. Cash and Temporary Investments 2018 2017Cash $ 410 $ 500Bank - operating account 230,262 2,562,857Money market funds 5,921 5,858Other mutual funds, shares, bonds, GIC's,brokerage 5,039,843 2,190,513Total Cash and Temporary Investments $ 5,276,436 $ 4,759,728

Cash and temporary investments include balances with banks, redeemable term deposits,marketable securities and other investments that are cashable or have maturities within twelvemonths or less.

3. Taxes and Grants in Lieu Receivable 2018 2017Municipal - Current $ 48,235 $ 75,086

- Arrears 113,341 125,488161,576 200,574

- Less allowance for uncollectables - -Total Municipal Taxes Receivable 161,576 200,574

School - Current 44,994 66,983- Arrears 65,127 46,817

Total School Taxes Receivable 110,121 113,800

Other - -

Total Taxes and Grants in Lieu Receivable 271,697 314,374

Deduct taxes to be collected on behalf of other organizations (110,121) (113,800)

Total Taxes and Grants in Lieu Receivable $ 161,576 $ 200,574

4. Other Accounts Receivable 2018 2017Trade receivables $ 1,271,490 $ 67,225Local governments - 1,194GST receivable 62,753 155,945Utility accounts receivable 182,747 374,636Accrued interest 5,198 16,138Total Other Accounts Receivable 1,522,188 615,138

Less Allowance for Uncollectables 2,187 2,187

Net Other Accounts Receivable $ 1,520,001 $ 612,951

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5. Long-Term Financial Assets 2018 2017Frontage tax receivables $ 43,335 $ 78,878Wastewater Management Authority loan 8,323,740 6,323,740Total Long Term Financial Assets $ 8,367,075 $ 6,402,618

6. Accounts Payable 2018 2017Trade payables $ 74,769 $ 274,966Sask Water 99,778 91,818School tax collections 42,448 37,046Overpaid taxes 283 -Accrued interest 57,389 39,521Wages and benefits payable 945 32,341Community centre deposits 4,050 4,500Building and other deposits 742,311 812,245

Total Accounts Payable $ 1,021,973 $ 1,292,437

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7. Deferred Revenue 2018 2017Recreation Committee, SK Lotteries grant awaiting disbursal $ 25,544 $ 25,544Protective services 20,403 20,064Funds in lieu of dedication of public reserve lands 20,127 20,127Planning and Development Act - development fees 1,794,983 1,676,401White Butte protective capital 56,036 56,036Subdivision projects funding 239,688 -Total Deferred Revenue $ 2,156,781 $ 1,798,172

8. Long-Term Debta) The debt limit of the municipality is $4,705,756. The debt limit for a municipality is the totalamount of the municipality's own source revenues for the preceding year (The Municipalities ActSection 161(1)). Future borrowings above the limit require Saskatchewan Municipal Board approval.

b) Debenture debts ($1,380,287 operating, $777,563 capital) are repayable at 3.2% and 5.15% andmature in 2021 and 2029.

Future principal and interest payments are as follows:

Year Principal Interest Current Total Prior Year Principal 2018 $ - $ - $ - $ 483,5072019 499,986 84,214 584,200 499,9862020 517,045 67,155 584,200 517,0452021 534,703 49,497 584,200 534,7032022 63,134 31,215 94,349 63,1342023 66,385 27,964 94,349 66,385

Thereafter 476,597 89,496 566,093 476,597Balance $ 2,157,850 $ 349,541 $ 2,507,391 $ 2,641,357

c) Bank Debt: Previous loans payable to the Royal Bank completed their repayments in 2018, anda new Royal Bank debt was incurred in the form of a bankers' acceptance loan. This new loan ispayable with interest-only payments for the first five years under a 3.93% interest rate swapcontract, followed by principal and interest payments for the remaining fifteen year period (2024 -2038). The loan is for financing wastewater treatment projects being undertaken by the localwastewater management authority.

Future principal and interest payments are as follows:

Year Principal Interest Current Total Prior Year Principal2018 $ - $ - $ - $ 33,5502019 - 137,550 137,550 -2020 - 137,550 137,550 -2021 - 137,173 137,173 -2022 - 138,304 138,304 -2023 - 137,550 137,550 -

Thereafter 3,500,000 1,174,753 4,674,753 -Balance $ 3,500,000 $ 1,862,880 $ 5,362,880 $ 33,550

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9. Trusts of the MunicipalityA summary of the trust fund activity by the municipality during the year is as follows:

McKenzie Point deposit, held in-trust 2018 2017Balance - Beginning of Year $ 83,097 $ 82,767Interest received, accrued 332 330Balance - End of Year $ 83,429 $ 83,097

10. Related Parties

The financial statements include transactions with related parties. The municipality is related to keymanagement personnel (council and senior management) and their close family members.Transactions with these related parties are in the normal course of operations and are settled onnormal trade terms.

11. Pension PlanThe municipality is an employer member of the Municipal Employee Pension Plan (MEPP), which isa multiemployer defined benefit pension plan. The Commission of MEPP, representing plan memberemployers, is responsible for overseeing the management of the pension plan, including investmentof assets and administration of benefits. The municipality's pension expense in 2018 was $94,821(2017 - $82,905). The benefits accrued to the municipality's employees from MEPP are calculatedusing the following: pensionable years of service, highest average salary, and the plan accrual rate.

12. Fair ValueThe fair value of the financial assets and liabilities approximates their carrying value due to theirshort term nature. The fair value of the municipality's long term debt approximates the carryingvalue as the terms and conditions are comparable to current market conditions, or they are due in arelatively short period of time.

13. Interest Rate RiskThe town is not exposed to significant interest rate risk on its monetary current assets and currentliabilities due to their short term maturity. The municipality is exposed to interest rate price risk on itslong term debt that has a fixed interest rate. Risks have been mitigated by entering into an interestrate swap contract. The interest rate and maturity date of the debt is disclosed in Note 8.

14. Credit RiskThe municipality is exposed to credit risk on the accounts receivable. Accounts receivable by type/source are disclosed in Notes 3-5.

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TOWN OF WHITE CITYSchedule of Taxes and Other Unconditional Revenue

For the year ended December 31, 2018Schedule 1

2018 Budget 2018 2017TAXES

General municipal tax levy $ 3,040,625 $ 3,041,208 $ 2,874,333Abatements and adjustments (6,000) (261) (25,834)Discount on current year taxes (403,200) (422,053) (393,740)Net Municipal Taxes 2,631,425 2,618,894 2,454,759Potash tax share - - -Trailer license fees - - -Penalties on tax arrears 28,600 36,940 30,271Special tax levy - - -Other - - - -

Total Taxes 2,660,025 2,655,834 2,485,030

UNCONDITIONAL GRANTSRevenue Sharing 616,319 616,426 661,287Organized Hamlet - - -Other - - - -

Total Unconditional Grants 616,319 616,426 661,287

GRANTS IN LIEU OF TAXESFederal - - -Provincial

S.P.C. Electrical - - -SaskEnergy Gas - - -TransGas - - -Central Services - - -SaskTel 1,600 1,803 1,740Other - - - -

Local/OtherHousing Authority - - -C.P.R. Mainline - - -Treaty Land Entitlement - - -Other - - - -

Other Government TransfersS.P.C. Surcharges - - -SaskEnergy Surcharge - - -Other - - - -

Total Grants in Lieu of Taxes 1,600 1,803 1,740

TOTAL TAXES AND OTHER UNCONDITIONAL REVENUE $ 3,277,944 $ 3,274,063 $ 3,148,057

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TOWN OF WHITE CITYSchedule of Operating and Capital Revenue by Function

For the year ended December 31, 2018Schedule 2-1

2018 Budget 2018 2017GENERAL GOVERNMENT SERVICESOperating

Other Segmented RevenueFees and Charges

- Custom work (incl office services, tax cert) $ 8,500 $ 12,133 $ 9,359- Fines (general), claims and refunds - 634 50- Other - - - -- Other - Licences and permits 28,500 21,308 30,398

Total Fees and Charges 37,000 34,075 39,807- Tangible capital asset sales - gain (loss) - - 210- Land sales - gain - - -- Investment income and commissions 61,000 108,625 70,117- Other - deposit forfeits - 15,930 4,710

Total Other Segmented Revenue 98,000 158,630 114,844Conditional Grants

- Student Employment - - -- Other - local 400 - 400

Total Conditional Grants 400 - 400Total Operating 98,400 158,630 115,244Capital

Conditional Grants- Gas Tax - - -- Can/Sask Municipal Rural Infrastructure - - -- Provincial Disaster Assistance - - -- Other - - - -

Total Capital - - -Total General Government Services $ 98,400 $ 158,630 $ 115,244

PROTECTIVE SERVICESOperating


- Fire fees $ 20,000 $ 47,115 $ 36,399Total Fees and Charges 20,000 47,115 36,399

- Tangible capital asset sales - gain (loss) - 8,796 2,450- Other - Fines (protective) 3,000 24,152 1,141


- Student Employment - - -- Local Government 104,000 104,810 88,433- Other - Operating donations - - 952

Total Conditional Grants 104,000 104,810 89,385Total Operating 127,000 184,873 129,375Capital

Conditional Grants and other restricted contributions- Gas Tax - - -- Local Government - - -- Other - Capital donations - 24,522 -- Other - Lot development fees recognized forTS capital projects

26,500 - -

Total Capital 26,500 24,522 -Total Protective Services $ 153,500 $ 209,395 $ 129,375

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2018 Budget 2018 2017TRANSPORTATION SERVICESOperating


- Custom work $ - $ - $ -- Sales of supplies - - -- Road maintenance agreements - - -- Frontage - - -- Other - - - -

Total Fees and Charges - - -- Tangible capital asset sales - gain (loss) 3,000 838 26,145- Other - - - -

Total Other Segmented Revenue 3,000 838 26,145Conditional Grants

- MREP (CTP) - - -- Student Employment 7,200 5,130 7,290- Other - Disaster assistance, flood control - - -


Conditional Grants and Other Capital Contributions- Gas Tax 117,212 115,723 115,155- Can/Sask Municipal Rural Infrastructure - - -- Corporate contributions - - 2,198- Lot development fees recognized for TScapital projects

- 404,849 -

- Provincial Disaster Assistance - - -- Other - Local Improvement 45,700 - 83,107

Total Capital 162,912 520,572 200,460Total Transportation Services $ 173,112 $ 526,540 $ 233,895

ENVIRONMENTAL AND PUBLIC HEALTH SERVICESOperating


- Waste and disposal fees $ 2,800 $ 2,317 $ 2,376- Other - Christopher Place agreement - 1,001 2,072

Total Fees and Charges 2,800 3,318 4,448- Tangible capital asset sales - gain (loss) - - -- Other - - - -


- Student Employment - - -- Local Government - - -- Other - Recycling 14,000 14,274 13,841


Conditional Grants- Gas Tax - - -- Can/Sask Municipal Rural Infrastructure - - -- TAPD - - -- Provincial Disaster Assistance - - -- Other - - - -

Total Capital - - -Total Environmental and Public Health Services $ 16,800 $ 17,592 $ 18,289

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2018 Budget 2018 2017PLANNING AND DEVELOPMENT SERVICESOperating


- Developer fees $ 60,000 $ 45,607 $ 94,235- Other - - - -

Total Fees and Charges 60,000 45,607 94,235- Tangible capital asset sales - gain (loss) - - -- Other - - - -


- Student Employment - - -- Other - - - -

Total Conditional Grants - - -Total Operating 60,000 45,607 94,235Capital

Conditional Grants- Gas Tax - - -- Provincial Disaster Assistance - - -- Other - - - -

Total Capital - - -Total Planning and Development Services $ 60,000 $ 45,607 $ 94,235

RECREATION AND CULTURAL SERVICESOperating


- Other - Recreation fees, rentals $ 170,600 $ 108,425 $ 137,596Total Fees and Charges 170,600 108,425 137,596

- Tangible capital asset sales - gain (loss) - - -- Other - - - -

Total Other Segmented Revenue 170,600 108,425 137,596Conditional Grants - - -

- Sask Culture, SE Connection, SPRA, CIF 4,000 4,000 16,160- Local Government 13,000 18,000 13,000- Parks and Recreation fundraising 14,100 10,259 12,694- Other - Sask Lotteries 25,600 25,544 25,544


Conditional Grants and other restricted contributions- Lot development fees recognized for RCprojects

253,800 118,590 105,000

- Other donations for tangible capital assets - 20,754 -- Local - - -- Trans Canada Trail - 28,205 -- Other - Library committee, capital project - - 43,653

Total Capital 253,800 167,549 148,653Total Recreation and Cultural Services $ 481,100 $ 333,777 $ 353,647

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2018 Budget 2018 2017UTILITY SERVICES Operating


- Water $ 1,151,900 $ 1,212,206 $ 1,269,000- Sewer 659,500 655,828 648,775- Other - Penalties, dumping, and other 68,200 58,107 43,707

Total Fees and Charges 1,879,600 1,926,141 1,961,482- Tangible capital asset sales - gain (loss) - - -- Other - Local improvement levies (interestcomponent)

1,700 4,004 4,656

Total Other Segmented Revenue 1,881,300 1,930,145 1,966,138Conditional Grants and Other Contributions

- SIGI interest subsidy - - -- Other - Lot development fees recognized forUT projects

1,393,000 245,006 610,850

Total Conditional Grants 1,393,000 245,006 610,850Total Operating 3,274,300 2,175,151 2,576,988Capital

Conditional Grants and Other Capital Contributions- Gas Tax - - -- Lot development fees recognized for UTcapital projects

73,700 73,700 37,571

- New Building Canada Fund (SCF, NRP) - - -- Other - - - -

Total Capital 73,700 73,700 37,571Total Utility Services $ 3,348,000 $ 2,248,851 $ 2,614,559

TOTAL OPERATING AND CAPITAL REVENUE BY FUNCTION $ 4,330,912 $ 3,540,392 $ 3,559,244

SUMMARYTotal Other Segmented Revenue $ 2,238,700 $ 2,327,026 $ 2,383,396

Total Conditional Grants and Other Contributions 1,575,300 427,023 789,164

Total Capital Grants and Other Capital Contributions 516,912 786,343 386,684

TOTAL OPERATING AND CAPITAL REVENUE BY FUNCTION $ 4,330,912 $ 3,540,392 $ 3,559,244

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TOWN OF WHITE CITYSchedule of Total Expenses by FunctionFor the year ended December 31, 2018

Schedule 3-1

2018 Budget 2018 2017GENERAL GOVERNMENT SERVICES

Council remuneration and travel $ 121,500 $ 118,498 $ 124,062Wages and benefits 525,800 520,671 340,855Professional/Contractual services 448,600 654,214 239,782Utilities 11,701 13,557 12,803Maintenance, materials, and supplies 66,200 70,304 82,213Grants and contributions - operating - - -

- capital - - -Amortization 49,100 54,887 52,022Interest - - -Allowance for uncollectible 1,000 - -Other - - - -

Total General Government Services $ 1,223,901 $ 1,432,131 $ 851,737

PROTECTIVE SERVICESPolice and Other ProtectionWages and benefits $ - $ - $ -Professional/Contractual services 166,600 160,715 143,117Utilities - - -Maintenance, materials, and supplies - - -Grants and contributions - operating 7,000 6,200 6,400

- capital - - -Other - - - 530Fire ProtectionWages and benefits 71,000 72,210 34,084Professional/Contractual services 39,400 19,916 23,617Utilities 8,300 7,739 7,223Maintenance, materials, and supplies 48,400 43,211 56,521Grants and contributions - operating 4,400 1,379 5,917

- capital - - 6,500Amortization 82,000 75,451 78,034Interest - - -Other - - - -

Total Protective Services $ 427,100 $ 386,821 $ 361,943

TRANSPORTATION SERVICESWages and benefits $ 364,300 $ 300,796 $ 287,778Council remuneration and travel - - -Professional/Contractual services 62,600 24,060 22,501Utilities 57,400 54,266 49,322Maintenance, materials, and supplies 282,600 253,397 129,588Gravel and sand 17,000 7,836 11,849Grants and contributions - operating - - -

- capital - - -Amortization 198,900 256,097 237,018Interest - - -Other - - - -

Total Transportation Services $ 982,800 $ 896,452 $ 738,056

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Schedule 3-2

2018 Budget 2018 2017ENVIRONMENTAL AND PUBLIC HEALTH SERVICES

Wages and benefits $ - $ - $ -Professional/Contractual services 246,300 239,882 214,535Utilities - - -Maintenance, materials, and supplies 4,500 4,481 1,552Grants and contributions - operating - - -

- Waste disposal - - -- Public health - - -

- capital - - -- Waste disposal - - -- Public health - - -

Amortization - - -Interest - - -Other - Christopher Place servicing agreement - 1,257 2,072Other - - - -

Total Environmental and Public Health Services $ 250,800 $ 245,620 $ 218,159

PLANNING AND DEVELOPMENT SERVICESWages and benefits $ 176,500 $ 176,515 $ 222,256Professional/Contractual services 135,000 159,666 178,250Maintenance, materials, and supplies 4,500 - 4,325Grants and contributions - - -Amortization - - -Interest - - -Other - Utilities 4,000 3,149 2,950

Total Planning and Development Services $ 320,000 $ 339,330 $ 407,781

RECREATION AND CULTURAL SERVICESWages and benefits $ 281,600 $ 319,836 $ 275,449Professional/Contractual services 132,200 112,887 90,729Utilities 30,200 27,890 25,803Maintenance, materials, and supplies 139,400 125,275 70,904Grants and contributions - operating 28,500 14,016 10,721

- capital, and football field - - 15,924Amortization 103,900 115,867 99,832Interest - - -Allowance for uncollectibles - - -Other - Recreation Committee programs and events 12,000 3,067 4,843

Total Recreation and Cultural Services $ 727,800 $ 718,838 $ 594,205

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Schedule 3-3

2018 Budget 2018 2017UTILITY SERVICES

Wages and benefits $ 195,400 $ 155,804 $ 141,896Professional/Contractual services 88,400 93,560 120,364Utilities 19,000 19,945 18,831Maintenance, materials, and supplies 112,700 98,009 116,844Grants and contributions - operating 87,800 125,400 87,800

- capital - - -Amortization 251,400 258,144 255,642Interest 210,900 196,226 115,540Allowance for uncollectibles - - -Other - Water purchases 907,100 951,814 936,946Other - SaskWater connection fee 350,000 350,000 350,000

Total Utility Services $ 2,222,700 $ 2,248,902 $ 2,143,863

TOTAL EXPENSES BY FUNCTION $ 6,155,101 $ 6,268,094 $ 5,315,744

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TOWN OF WHITE CITYSchedule of Segment Disclosure by Function


Schedule 4

GeneralGovernment

ProtectiveServices

TransportationServices

Environmental& Public Health

Planning andDevelopment

Recreationand Culture

UtilityServices Total

Revenues (Schedule 2)

Fees and Charges $ 34,075 $ 47,115 $ - $ 3,318 $ 45,607 $ 108,425 $ 1,926,141 $ 2,164,681

Tangible Capital Asset Sales - Gain - 8,796 838 - - - - 9,634

Investment Income and Commissions 108,625 - - - - - - 108,625

Other Revenues 15,930 24,152 - - - - 4,004 44,086

Grants - Conditional - 104,810 5,130 14,274 - 57,803 245,006 427,023

- Capital - 24,522 520,572 - - 167,549 73,700 786,343

Total Revenues 158,630 209,395 526,540 17,592 45,607 333,777 2,248,851 3,540,392

Expenses (Schedule 3)

Wages and Benefits 639,169 72,210 300,796 - 176,515 319,836 155,804 1,664,330

Professional/Contractual Services 654,214 180,631 24,060 239,882 159,666 112,887 93,560 1,464,900

Utilities 13,557 7,739 54,266 - 3,149 27,890 19,945 126,546

Maintenance, Materials, and Supplies 70,304 43,211 261,233 4,481 - 125,275 98,009 602,513

Grants and Contributions - 7,579 - - - 14,016 125,400 146,995

Amortization 54,887 75,451 256,097 - - 115,867 258,144 760,446

Interest - - - - - - 196,226 196,226

Other - - - 1,257 - 3,067 1,301,814 1,306,138

Total Expenses 1,432,131 386,821 896,452 245,620 339,330 718,838 2,248,902 6,268,094

Surplus (Deficit) by Function $ (1,273,501) $ (177,426) $ (369,912) $ (228,028) $ (293,723) $ (385,061) $ (51) $ (2,727,702)

Taxation and Other Unconditional Revenue (Schedule 1) $ 3,274,063

Net Surplus (Deficit) $ 546,361

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TOWN OF WHITE CITYSchedule of Segment Disclosure by Function


Schedule 5

GeneralGovernment

ProtectiveServices


Environmental& Public Health

Planning andDevelopment

Recreationand Culture

UtilityServices Total

Revenues (Schedule 2)

Fees and Charges $ 39,807 $ 36,399 $ - $ 4,448 $ 94,235 $ 137,596 $ 1,961,482 $ 2,273,967

Tangible Capital Asset Sales - Gain 210 2,450 26,145 - - - - 28,805

Investment Income and Commissions 70,117 - - - - - - 70,117

Other Revenues 4,710 1,141 - - - - 4,656 10,507

Grants - Conditional 400 89,385 7,290 13,841 - 67,398 610,850 789,164

- Capital - - 200,460 - - 148,653 37,571 386,684

Total Revenues 115,244 129,375 233,895 18,289 94,235 353,647 2,614,559 3,559,244

Expenses (Schedule 3)

Wages and Benefits 464,917 34,084 287,778 - 222,256 275,449 141,896 1,426,380

Professional/Contractual Services 239,782 166,734 22,501 214,535 178,250 90,729 120,364 1,032,895

Utilities 12,803 7,223 49,322 - 2,950 25,803 18,831 116,932

Maintenance, Materials, and Supplies 82,213 56,521 141,437 1,552 4,325 70,904 116,844 473,796

Grants and Contributions - 18,817 - - - 26,645 87,800 133,262

Amortization 52,022 78,034 237,018 - - 99,832 255,642 722,548

Interest - - - - - - 115,540 115,540

Other - 530 - 2,072 - 4,843 1,286,946 1,294,391

Total Expenses 851,737 361,943 738,056 218,159 407,781 594,205 2,143,863 5,315,744

Surplus (Deficit) by Function $ (736,493) $ (232,568) $ (504,161) $ (199,870) $ (313,546) $ (240,558) $ 470,696 $ (1,756,500)

Taxation and Other Unconditional Revenue (Schedule 1) $ 3,148,057

Net Surplus (Deficit) $ 1,391,557

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TOWN OF WHITE CITYSchedule of Tangible Capital Assets by Object


2018 2017

General AssetsInfrastructure

AssetsGeneral /

Infrastructure

LandLand

Improvements Buildings VehiclesMachinery &Equipment Linear Assets

Assets UnderConstruction Total Total

Asset Cost

Opening Asset costs $ 12,547,598 $ 2,172,311 $ 2,506,557 $ 169,467 $ 1,844,579 $ 18,420,953 $ 45,862 $ 37,707,327 $ 36,649,926

Additions during the year - 171,612 687,925 - 70,207 - 82,609 1,012,353 1,084,281

Disposals and write downs during the year - - - - (6,825) - (1,963) (8,788) (26,880)

Transfers (from) assets under construction - - 13,013 - - - (13,013) - -

Closing Asset Costs $ 12,547,598 $ 2,343,923 $ 3,207,495 $ 169,467 $ 1,907,961 $ 18,420,953 $ 113,495 $ 38,710,892 $ 37,707,327

Accumulated Amortization

Opening Accum. Amort. Cost $ - $ 641,238 $ 1,104,126 $ 70,460 $ 864,338 $ 4,576,037 $ - $ 7,256,199 $ 6,560,531

Add: Amortization taken - 106,145 91,709 13,168 148,948 400,476 - 760,446 722,548

Less: Accum. Amort. on Disposals - - - - (6,825) - - (6,825) (26,880)

Closing Accumulated Amort. $ - $ 747,383 $ 1,195,835 $ 83,628 $ 1,006,461 $ 4,976,513 $ - $ 8,009,820 $ 7,256,199

Net Book Value $ 12,547,598 $ 1,596,540 $ 2,011,660 $ 85,839 $ 901,500 $ 13,444,440 $ 113,495 $ 30,701,072 $ 30,451,128

1. Total contributed/donated assets received in 2018: $ -2. List of assets recognized at nominal value are: $ -

- Infrastructure assets $ -- Vehicles $ -- Machinery and Equipment $ -

3. Amount of interest capitalized in 2018: $ -

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TOWN OF WHITE CITYSchedule of Tangible Capital Assets by Function


2018 2017

GeneralGovernment

ProtectiveServices


Environmental& PublicHealth

Planning &Development

Recreation& Culture

Water &Sewer Total Total

Asset Cost

Opening Asset costs $ 1,246,713 $ 1,481,175 $ 17,362,049 $ - $ - $ 2,640,424 $ 14,976,966 $ 37,707,327 $ 36,649,926

Additions during the year 14,325 15,740 723,322 - - 202,886 56,080 1,012,353 1,084,281

Disposals and write-downs during the year - - (8,788) - - - - (8,788) (26,880)

Closing Asset Costs $ 1,261,038 $ 1,496,915 $ 18,076,583 $ - $ - $ 2,843,310 $ 15,033,046 $ 38,710,892 $ 37,707,327

Accumulated Amortization

Opening Accum. Amort. Costs $ 319,063 $ 674,301 $ 1,379,702 $ - $ - $ 1,123,407 $ 3,759,726 $ 7,256,199 $ 6,560,531

Add: Amortization taken 54,887 75,451 256,097 - - 115,867 258,144 760,446 722,548

Less: Accum. Amort. Disposals - - (6,825) - - - - (6,825) (26,880)

Closing Accumulated Amortization $ 373,950 $ 749,752 $ 1,628,974 $ - $ - $ 1,239,274 $ 4,017,870 $ 8,009,820 $ 7,256,199

Net Book Value $ 887,088 $ 747,163 $ 16,447,609 $ - $ - $ 1,604,036 $ 11,015,176 $ 30,701,072 $ 30,451,128

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TOWN OF WHITE CITYSchedule of Accumulated Surplus


2017 Changes 2018

UNAPPROPRIATED SURPLUS $ 510,664 $ 582,422 $ 1,093,086

APPROPRIATED RESERVES

Asset renewal - General Government 71,100 24,700 95,800Asset renewal - Protective 131,000 34,000 165,000Asset renewal - Transportation 348,700 110,400 459,100Asset renewal - Recreation & Culture 140,100 52,100 192,200Asset renewal - Utilities 1,022,900 258,100 1,281,000Recreation Committee 2,400 - 2,400Fire Department fundraising 7,000 - 7,000Occupancy deposit forfeitures 13,900 - 13,900Carried-over projects 52,510 214,201 266,711Utilities Surplus 142,200 23,890 166,090

Total Appropriated to Reserves 1,931,810 717,391 2,649,201

OTHER APPROPRIATED - NET INVESTMENT INWASTEWATER MANAGEMENT AUTHORITY

Loan to WCRM158 Wastewater Management Authority 6,323,740 2,000,000 8,323,740Less: Related debt (1,812,149) (3,068,138) (4,880,287)

Net Surplus Appropriated to Wastewater Authority 4,511,591 (1,068,138) 3,443,453

NET INVESTMENT IN TANGIBLE CAPITAL ASSETS

Tangible Capital Assets (Schedule 6) 30,451,128 249,944 30,701,072Less: Related debt (842,305) 64,742 (777,563)

Net Investment in Tangible Capital Assets 29,608,823 314,686 29,923,509

OTHER - - -

Total Accumulated Surplus $ 36,562,888 $ 546,361 $ 37,109,249

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TOWN OF WHITE CITYSchedule of Mill Rates and AssessmentsFor the year ended December 31, 2018

Schedule 9

PROPERTY CLASS

Agriculture ResidentialResidential

CondominiumSeasonal

ResidentialCommercial & Industrial

PotashMine(s) Total

Taxable Assessment $ 1,321,675 $ 571,963,040 $ 2,207,440 $ - $ 6,514,100 $ - $ 582,006,255

Regional Park Assessment -

Total Assessment 582,006,255

Mill Rate Factor(s) 1.000 1.000 1.000 - 1.000

Total Base Tax - 1,116,500 - - 5,300 1,121,800

Total Municipal Tax Levy $ 4,359 $ 3,002,834 $ 7,280 $ - $ 26,784 $ 3,041,257

MILL RATES: MILLSAverage Municipal* 5.225Average School* 4.146Potash Mill Rate -Uniform Municipal Mill Rate 3.298

* Average Mill Rates (multiply the total tax levy for each taxing authority by 1,000 and divide by the total assessment for the taxing authority).

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TOWN OF WHITE CITYSchedule of Council Remuneration


Name RemunerationReimbursed

Costs TotalMayor, Bruce Evans $ 23,749 $ 210 $ 23,959Councillor, Rebecca Otitoju 12,277 133 12,410Councillor, Andrew Boschman 16,807 - 16,807Councillor, Henry Zorn 14,297 - 14,297Councillor, Scott Moskal 12,309 92 12,401Councillor, Howard Slack 11,017 123 11,140Councillor, Cecil Snyder 19,675 61 19,736Total $ 110,131 $ 619 $ 110,750

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TOWN OF WHITE CITY

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TOWN OF WHITE CITYStatement of Financial Position

As at December 31, 2018Statement 1

2018 2017ASSETSFinancial Assets

Cash and Investments $ 5,276,436 $ 4,759,728Taxes Receivable - Municipal 161,576 200,574Other Accounts Receivable 1,520,001 612,951Land for Resale - -Long-Term Receivables 8,367,075 6,402,618Other - -

Total Financial Assets 15,325,088 11,975,871

LIABILITIESBank Indebtedness - -Accounts Payable 1,021,973 1,292,437Accrued Liabilities Payable - -Utility Deposits 118,620 124,320Deferred Revenue 2,156,781 1,798,172Accrued Landfill Costs - -Other Liabilities - -Long-Term Debt 5,657,850 2,674,907Lease Obligations - -

Total Liabilities 8,955,224 5,889,836

NET FINANCIAL ASSETS 6,369,864 6,086,035

Tangible Capital Assets 30,701,072 30,451,128Prepayment and Deferred Charges 38,313 25,725Stock and Supplies - -Other - -

Total Non-Financial Assets 30,739,385 30,476,853

Accumulated Surplus (Deficit) $ 37,109,249 $ 36,562,888

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

To the Residents of theTOWN OF WHITE CITY

Management of the TOWN OF WHITE CITY has the responsibility for preparing the accompanying financialstatements and ensuring that all information in the related reports is consistent with the statements. This responsibilityincludes selecting appropriate accounting policies and making objective judgments and estimates in accordance withCanadian public sector accounting standards.

In discharging its responsibilities for the integrity and fairness of the financial statements and for the accountingsystems from which they are derived, management maintains the necessary systems of internal controls designed to provideassurance that transactions are authorized, assets are safeguarded and proper records maintained.

Ultimate responsibility for financial statements to the residents of the municipality lies with the Council who review thefinancial statements in detail with management prior to their approval for publication.

External auditors are appointed by the Council to audit the financial statements and are available to meet separatelywith both the Council and management to review their findings. The external auditors have full and free access to the Councilto discuss their audit and their findings as to the integrity of the municipality's financial reporting and the adequacy of thesystem of internal controls.

________________________________ ________________________________Mayor Administrator


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TOWN OF WHITE CITYStatement of Operations


2018 Budget 2018 2017 Revenues

Taxes and Other Unconditional Revenue $ 3,277,944 $ 3,274,063 $ 3,148,057Fees and Charges 2,170,000 2,164,681 2,273,967Conditional Grants 1,575,300 427,023 789,164Tangible Capital Assets Sales - Gain 3,000 9,634 28,805Land Sales - Gain - - -Investment Income and Commissions 61,000 108,625 70,117Other Revenues 4,700 44,086 10,507

Total Revenues 7,091,944 6,028,112 6,320,617

Expenses

General Government Services 1,223,901 1,432,131 851,737Protective Services 427,100 386,821 361,943Transportation Services 982,800 896,452 738,056Environmental and Public Health Services 250,800 245,620 218,159Planning and Development Services 320,000 339,330 407,781Recreation and Cultural Services 727,800 718,838 594,205Utility Services 2,222,700 2,248,902 2,143,863

Total Expenses 6,155,101 6,268,094 5,315,744

Surplus (Deficit) before Other Capital Contributions 936,843 (239,982) 1,004,873

Capital Grants and Contributions 516,912 786,343 386,684

Surplus (Deficit) of Revenues over Expenses 1,453,755 546,361 1,391,557

Accumulated Surplus (Deficit), Beginning of Year 36,562,888 36,562,888 35,171,331

Accumulated Surplus (Deficit), End of Year $ 38,016,643 $ 37,109,249 $ 36,562,888

REPORT OF THE INDEPENDENT AUDITORS ON THE SUMMARY FINANCIAL STATEMENTS

To the Mayor and CouncillorsTOWN OF WHITE CITY

OpinionThe summary financial statements, which comprise the statement of financial position as at December 31, 2018 and

the statement of operations for the year then ended, are derived from the audited financial statements of the TOWN OFWHITE CITY for the year ended December 31, 2018.

In our opinion, the accompanying summary financial statements are a fair summary of the audited financialstatements in accordance with Canadian public sector accounting standards.

Summary Financial StatementsThe summary financial statements do not contain all the disclosures required by Canadian public sector accounting

standards. Reading the summary financial statements and the auditors' report theron, therefore, is not a substitute for readingthe municipality's audited financial statements and the auditors' report theron.

The Audited Financial Statements and Our Report ThereonWe expressed an unmodified audit opinion on the audited financial statements in our report dated .

Management's Responsibility for the Summary Financial StatementsManagement is responsible for the preparation of the summary financial statements in accordance with Canadian

public sector accounting standards.

Auditors' ResponsibilityOur responsibility is to express an opinion on whether the summary financial statements are a fair summary of the

audited financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard(CAS) 810, "Engagements to Report on Summary Financial Statements."

_________________________________Dudley & Company LLPChartered Professional Accountants

Regina, Saskatchewan


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TOWN OF WHITE CITYBox 220

White City, SaskatchewanS4L 5B1

Dudley & Company LLPSuite 100 - 2255 13th AvenueRegina, SaskatchewanS4P 0V6

Dear Sir/Madam:

I am providing this letter in connection with your audit of the financial statements and summary financialstatements of Town of White City as of December 31, 2018 and for the year then ended for thepurpose of expressing an opinion as to whether the financial statements and summary financialstatements are presented fairly, in all material respects, in accordance with Canadian public sectoraccounting standards.

I wish to inform you that, on today's date: , the financial statements andsummary financial statements have been approved by the Council (motion number ).

Further, I represent that, to the best of my knowledge and belief, any events having occurred from thefiscal year-end date until today requiring financial statement adjustment or disclosure have beenadjusted or disclosed.

Yours truly,

Signed on behalf of: ___________________________ administration

___________________________ council

CDI 19-051 Appendix B

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TOWN OF WHITE CITYBox 220

White City, SaskatchewanS4L 5B1

Confidential

Dudley & Company LLPChartered Professional Accountants#100 - 2255 - 13th AvenueRegina, SK S4P 0V6

Dear Sir / Madam:

Re: Management representations letter

This representation letter is provided in connection with your audit of the financial statements of Town of White Cityfor the ended December 31, 2018, for the purpose of you expressing an opinion as to whether the financialstatements are presented fairly, in all material respects, in accordance with Canadian public sector accountingstandards.

In making the representations outlined below, we took the time necessary to appropriately inform ourselves on thesubject matter through inquiries of entity personnel with relevant knowledge and experience, and, whereappropriate, by inspecting supporting documentation.

We confirm that (to the best of our knowledge and belief):

1. Financial Statements

We have fulfilled our responsibilities, as set out in the terms of the most recent audit engagement letter, for:

a. Preparing and fairly presenting the financial statements in accordance with Canadian public sectoraccounting standards;

b. Providing you with:

i. Access to all information of which we are aware that is relevant to the preparation of the financialstatements, such as:

A. Accounting records, supporting data and other relevant documentation,

B. Minutes of meetings (such as council and relevant committees) or summaries of actions taken forwhich minutes have not yet been prepared, and

C. Information on any other matters, of which we are aware, that is relevant to the preparation of thefinancial statements;

ii. Additional information that you have requested from us for the purpose of the audit; and

iii. Unrestricted access to persons within the entity from whom you determine it necessary to obtain auditevidence.

c. Ensuring that all transactions have been recorded in the accounting records and are reflected in the financialstatements; and

d. Designing and implementing such internal control as we determined is necessary to enable the preparationof financial statements that are free from material misstatement, whether due to fraud or error. We have alsocommunicated to you any deficiencies in the design and implementation or the maintenance of internalcontrol over financial reporting of which management is aware.


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2. Fraud and Non Compliance

We have disclosed to you:

a. All of our knowledge in relation to actual, alleged or suspected fraud affecting the entity's financialstatements involving:

i. Management;

ii. Employees who have significant roles in internal control; or

iii. Others where the fraud could have a material effect on the financial statements;

b. All of our knowledge in relation to allegations of fraud or suspected fraud communicated by employees,former employees, analysts, regulators or others;

c. All known instances of non-compliance or suspected non-compliance with laws and regulations, including allaspects of contractual agreements that should be considered when preparing the financial statements;

d. All known, actual, or possible litigation and claims that should be considered when preparing the financialstatements; and

e. The results of our risk assessments regarding possible fraud or error in the financial statements.

3. Adjustments

We have reviewed, approved and recorded all of your proposed adjustments to our accounting records. Thisincludes journal entries, changes to account coding, classification of certain transactions and preparation of, orchanges to, certain accounting records.

4. Misstatements

The effects of any uncorrected misstatements brought to our attention during the course of the audit areimmaterial, individually and in aggregate, to the financial statements as a whole.

5. Estimates

We acknowledge our responsibility for determining the accounting estimates required for the preparation of thefinancial statements in accordance with Canadian public sector accounting standards. Those estimates reflectour judgment based on our knowledge and experience of past and current events, and on our assumptionsabout conditions we expect to exist and courses of action we expect to take. We confirm that the significantassumptions and measurement methods used by us in making accounting estimates, including those measuredat fair value, are reasonable.

6. Related Parties

We have disclosed to you the identity of all of the municipality’s related-party relationships and transactions ofwhich we are aware. This includes sales, purchases, loans, transfers of assets, liabilities and services, leasingagreements, guarantees, non-monetary transactions, and transactions for no consideration for the period endedas well as related balances due to or from such parties at the period end.

All related-party relationships and transactions have been appropriately accounted for and disclosed inaccordance with the requirements of Canadian public sector accounting standards.

7. Receivables

The accounts receivable reflected in the accounts constitute valid claims against customers and other debtors.

Receivables known to be uncollectible have been written off, and/or adequate provision has been made foranticipated adjustments or losses in connection with the collection of receivables.

8. Inventories

If applicable, the inventories of raw materials and supplies as at December 31, 2018 were the property of ourmunicipality and were determined by actual count, weight or measurement, or when not practicable byreasonable and consistent estimation means. Inventories for resale were measured at lower of cost and netrealizable value. Inventories for consumption were measured at lower of cost and replacement cost.

9. Impairment of investments and other long-lived assets


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9. Impairment of investments and other long-lived assets (continued)

We have evaluated investments and other long-lived assets for recoverability whenever events orcircumstances indicate that the carrying amount of an asset may not be recoverable. Managementacknowledges that when the long-lived asset is not recoverable, an impairment loss is recognized in earnings atthe amount by which the carrying amount exceeds its fair value.

10. Commitments and Contingencies

There are no commitments, contingent liabilities/assets or guarantees (written or oral) that should be disclosedin the financial statements. This includes liabilities arising from contract terms, illegal acts or possible illegalacts, and environmental matters that would have an impact on the financial statements.

11. Subsequent Events

All events subsequent to the date of the financial statements and for which Canadian public sector accountingstandards requires adjustment or disclosure have been adjusted or disclosed.

Acknowledged and agreed on behalf of Town of White City by:

Date signed


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Management's Responsibility

The municipality's management is responsible for the preparation and presentation of the accompanyingfinancial statements in accordance with Canadian public sector accounting standards (PSAS). Thepreparation of the statements necessarily includes selecting appropriate accounting policies andmethods, and making decisions affecting the measurement of transactions in which objective judgmentsand estimates by management is required.

In discharging its responsibilities for the integrity and fair presentation of the financial statements,management designs and maintains the necessary accounting, budget and other related internalcontrols to provide reasonable assurance that transactions are appropriately authorized and accuratelyrecorded, that assets are properly accounted for and safeguarded, and that financial records areproperly maintained to provide reliable information for the preparation of financial statements.

The Council is composed of elected officials who are not employees of the municipality. The Council isresponsible for overseeing management in the performance of its financial reporting responsibilities.The Council fulfils these responsibilities by reviewing the financial information prepared by managementand discussing relevant matters with external auditors. The Council is also responsible forrecommending the appointment of the municipality's external auditors.

Dudley & Company LLP, an independent firm of Chartered Professional Accountants, is appointed bythe Council to audit the financial statements and report directly to them; their report is attached to thefinancial statements. The external auditors have full and free access to both the Council andmanagement to communicate their audit findings.

__________________________ __________________________

Council Administration


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town of white city

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