2.  Snapshot and Summary  Private vs. Public Sector Financial Statements  Statement of Financial Position  Tangible Capital Assets  Statement of Operations  Operating Results Compared to Budget  Audit Results  Take Aways  Trust Statements  Next Steps  Appendix

4. Snapshot as at March 31 st :  $15.2M in cash and investments  Net Book Value of Tangible Capital Assets of $28.5M  For use in the provision of services  Total Borrowing of $13.8M  Long Term $10.9M  Medium Term $2.9M

6. 2012 Consolidated Operations Summary:  $25.6M in total revenue of which $18.3M is from general taxation (after removing school taxes of $6.4M)  Total consolidated expenses decreased 7.5% over 2011  Transfer to reserve this year for depreciation - assets replacement ($2.16M)  Actual consolidated surplus of $4.9M  $600k increase from consolidated budget surplus of $4.3M

8. 2012 Operating Fund Summary: (see A-7)  $23.2M in total revenue of which $18.3M is from general taxation (after removing school taxes of $6.4M)  Total expenses decreased 2.4% over 2011 (after removing amortization)  Annual reserve provisions for asset/infrastructure replacement ($2.16M) equals amortization expense  Accounting surplus before transfers of $4.7M (budget $2.4M)  Budget surplus $384K, actual surplus after additional transfers of $0  $2.7M additional transfers over budget ($2.16M amortization reserve, $500K balance)

9. Private vs. Public Sector Statements Private SectorPublic Sector Balance SheetStatement of Financial Position (A-2) Income StatementStatement of Operations (A-3) Statement of Cash FlowStatement of Cash Flow (A-4) Statement of Changes in Financial Net Debt (A-5) Fund Schedules (A-7 to A-13) NotesNotes (A-14 to A-45)

10.  Statement of Financial Position  Assets – what the District owns or controls  Financial Assets (cash or to be converted to cash)  Non-financial Assets (physical assets used to deliver services)  Liabilities – what the District owes  Accumulated Surplus – what remains after the assets have been used to meet the liabilities  Primary indicator of the District`s resources available for service provision  Not a funding source for day-to-day operations

11.  Cash and Investments total $15.2M  Total Borrowing of $13.8M  Net Book Value of Tangible Capital Assets of $28.5M  Accumulated Surplus of $29.6M Comparison with Prior Year  Increase in Cash and Portfolio Investments  Property Tax and Utilities Receivable Decrease  Decrease in Government Grant Receivables and Other Receivables  Accounts payable and Accrued Liabilities Decrease  No Borrowing - Long-term loan repayments  Investment in Tangible Capital Assets

12.  Land and Other Physical Assets held for use in the supply of District Services  Historical Cost $38.6M (2011 - $35.5M)  Accumulated Amortization $11.1M (2011 - $9.1M)  Net Book Value $28.5M (2011 - $29.7M)  Added assets $503.1K to Municipal General and $497.6 net $497.6 Solid Waste

13.  Key Additions for 2012 Include:  Recycling (added $757.5k -- $497.6k after partner)  Replacement of forklift, wheel loader, conveyor, equipment and vehicles, ramp for glass bunker  Lagoon works  Landfill closure  Municipal General (added $503.1k)  Jail Demolition  Billie Lane Culvert  Aerated Carts  Sewers  Riverside and Cookville improvements  Planning Vehicle  Osprey Village Plan

14.  Key Additions for 2012 Include (Cont):  Recreation  Equipment Purchases  Fire Brook Falls and MARC North Land Purchases  Trail Development  BMX Park Upgrade  United Communities Marine Park  Vehicles

17.  Consolidated Operating Revenues increased by $1.9M over budget (Budget - $23.6M vs. Actual - $25.5M)  Key Drivers of this increase:  Property Tax Revenue increased $752.6K over budget as follows:  Deed Transfer Tax revenue up by $295.1K  Fire tax revenue up by $136K (Rates from Fire Depts.)  Residential tax revenue up $122.7K  Commercial tax revenue up $104.5K  HST Rebate $59.3K

18.  Grants in lieu increased $19.5K over budget (Budget - $188.2K vs. Actual - $207.6K)  Provincial grant higher, federal grant lower, net gain $19.5K  Services to other governments – revenues decreased by $448K --($287.5K OF; $160.5K CF)  Partner share of waste site costs dropped by $280K – lower waste site cost to apportionment

19.  Other revenues from own sources  Municipal Operations:  Revenues up $1.6M  Waste site revenues up $435.3K  Interest on investments up $140.5K  Interest on taxes up $169.4K  Administrative charges up $117.6K  Tax sale fees up $76.3K  License, fines and permits up $32.1K  Other Funds and consolidated entities: Increases from Budget:  LCMCC $400.4K; Tax Sale $107.8K

20.  Unconditional transfers up $6.9K (Budget - $60.6K vs. Actual - $67.5K  Conservation property grant increased  Conditional transfers down $2K

21.  Total consolidated operating expenses decreased by $1.3M  Decrease by $830.7K in Operating Fund  General government services under by $309.7K (Budget - $3,980K vs. Actual - $3,670.3K )  Advisory services under by $116.7K  Legislative expenses including Council under by $95.6K  Reduced taxation under by $37.2K  External audits under by $31.9K (No visit for AG)  Office repairs under by $28K

22.  Protective services under by $78.2K (Budget - $6,124.9K vs. Actual - $6,046.7K)  RCMP costs under by $202.5K  Fire tax payments up by $133.4K (see increase in fire tax revenue)  Transportation and common services under by $111K  Lower road and street costs – under by $$98.6K  Lower street light costs – under by $5.1K

23.  Environmental health services – under by $251.7K (Budget - $5,722.1K vs. Actual - $5,470.3K)  Sewage collection and disposal under by $37.1K  Garbage collection under by $19.7K  Waste site under by $213.6K  Public health services over by $60,498 (Budget - $27K vs. Actual - $87.7K)  Public housing costs

24.  Environmental and economic development under by $66.5K (Budget - $1,305.3K vs. Actual - $1,238.9K)  Planning wages and benefits under by $6.1K  Interest charges under by $81.5K  Economic development and tourism over by $26.8K  Recreation and cultural services under by $74.3K  Repairs and maintenance under by $22.2K  Recreation programs under by $31.5K  Lunenburg Co Lifestyle Centre under by $37.1K  Other Variances: Amortization over; Landfill Closure Liability under; Trust expenses over

27.  Clean Audit Opinion, comply with Public Sector Accounting (PSAB)  Annual Management recommendations – no major issues

28.  Depreciation reserve transfer of $2.16M for asset replacement  Additional $500K transfer to reserves from budget  Operating Reserves increased by $2.85M to $5.7M  Capital Reserves increased by $1.3M to $6.5M  Long-Term Debt paid down over $1M  Revenues increased with higher deed transfer tax, tax revenues and other revenues  Operating fund expenses decreased from budget and prior year

29.  Total Capital Investments of $1M for the year with no borrowing

31.  Recommend approval of Financial Statements to Council  Suggested Motion:  The Audit/Finance Committee recommends to Council that they approve the Municipality of the District of Lunenburg’s 2011-2012 audited Consolidated Financial Statements and the 2011 - 2012 audited Trust Funds Financial Statements.