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City of EstevanFinancial Statements

December 31, 2013

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City of EstevanContents

For the year ended December 31, 2013

Page

Management's Responsibility

Auditors' Report

Financial Statements

Statement 1 - Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Statement 2 - Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Statement 3 - Statement of Changes of Net Financial Assets. . . . . . . . . . . . . . . . . . . . . . . . . . 4

Statement 4 - Statement of Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Notes to the Financial Statements 6

SchedulesSchedule 1 - Schedule of Taxes and other Unconditional Revenue . . . . . . . . . . . . . . . . . . . . 15

Schedule 2 - Schedule of Operating and Capital Revenue by Function . . . . . . . . . . . . . . . . . 16

Schedule 3 - Schedule of Expenses by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Schedule 4 - Schedule of Current Year Segment Disclosure by Function . . . . . . . . . . . . . . . 23

Schedule 5 - Schedule of Prior Year Segment Disclosure by Function . . . . . . . . . . . . . . . . . 24

Schedule 6 - Schedule of Tangible Capital Assets by Object. . . . . . . . . . . . . . . . . . . . . . . . . 25

Schedule 7 Schedule of Tangible Capital Assets by Function. . . . . . . . . . . . . . . . . . . . . . . . 26

Schedule 8 - Schedule of Accumulated Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Schedule 9 - Schedule of Mill Rates and Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Schedule 10 - Schedule of Council Remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Management's Responsibility

To the Council of the City of Estevan:

__________________________ __________________________ Mayor Treasurer

Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian public sector accounting standards. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of the financial statements.

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

MNP LLP, an independent firm of Chartered Accountants, is appointed by the councillors to audit the financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Council and Administration to discuss their audit findings.

July 21, 2014

Auditors' Report

To the Council of the City of Estevan:

Basis for Qualified Opinion

Opinion

Estevan, Saskatchewan

July 21, 2014 Chartered Accountants

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

Inventory is not reconciled to the general ledger and we were not able to satisfy ourselves concerning inventory quantities by alternative means. Accordingly, our verification of inventory is limited to the amount recorded in the records of the City and we were not able to determine whether any adjustments might be necessary to expenses, changes in non-financial assets, stock and supplies. The City is also required to accrue landfill closure and post-closure costs. Since we have been unable to obtain information with respect to these costs, we are unable to determine what the related liability should have been nor are we able to determine the related effect on liabilities, expenses and surplus for the year ended December 31, 2013.

In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the City of Estevan as at December 31, 2013 and the results of its operations, changes in net assets and cash flows for the year then ended in accordance with Canadian public sector accounting standards.

We have audited the accompanying financial statements of the City of Estevan, which comprises the statement of financial position as at December 31, 2013, and the statement of operations, change in net financial assets, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

City of Estevan

Statement of Financial Position

As at December 31, 2013 Statement 1

2013 2012

ASSETS

Financial Assets

Cash (Note 2) 4,759,840 1,523,042

Taxes receivable - municipal (Note 3) 743,335 335,063

Other accounts receivable (Note 4) 2,797,588 2,955,711

Land for resale (Note 5) 3,347,123 3,884,159

Long-term local improvement receivable (Note 6) 2,425,247 2,828,245

Total Financial Assets 14,073,133 11,526,220

LIABILITIES

Bank indebtedness (Note 7) 12,469,716 11,375,042

Accounts payable 3,410,288 3,206,254

Utility deposits 510,645 504,519

Deferred revenue (Note 8) 917,440 825,384

Long-term debt (Note 9) 29,627,084 23,773,694

Capital lease obligations (Note 10) 1,636,967 2,262,557

Total Liabilities 48,572,140 41,947,450

NET FINANCIAL DEFICIT (34,499,008) (30,421,230)

Non-Financial Assets

Tangible capital assets (Schedule 6, 7) 105,965,002 98,966,553

Prepayments and deferred charges 364,240 14,621

Stock and supplies 993,514 944,609

Patronage equity 31,405 31,405

Total Non-Financial Assets 107,354,161 99,957,188

Accumulated Surplus (Deficit) (Schedule 8) 72,855,154 69,535,958

Mayor Manager

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City of Estevan

Statement of Operations

For The Year Ended December 31, 2013 Statement 2

2013 Budget 2013 Actual 2012 Actual

Revenues

Taxes and other unconditional revenue (Schedule 1) 17,013,054 15,723,570 12,675,327

Fees and charges (Schedule 4, 5) 17,809,457 12,701,870 10,438,146

Conditional grants (Schedule 4, 5) 4,378,410 1,332,401 2,671,110

Tangible capital asset sales - gain (Schedule 4, 5) - - -

Land sales - gain (Schedule 4, 5) 4,892,258 1,508,764 2,081,772

Investment income and commissions (Schedule 4, 5) 100,000 1,980 577

Other revenues (Schedule 4, 5) 330,500 504,808 542,006

Total Revenues 44,523,679 31,773,393 28,408,938

Expenses

General government services (Schedule 3) 4,421,843 5,811,195 3,968,831

Protective services (Schedule 3) 5,155,878 4,713,030 4,794,386

Transportation services (Schedule 3) 3,737,374 5,753,716 5,484,539

Environmental and public health services (Schedule 3) 1,315,079 1,393,436 1,176,457

Planning and development services (Schedule 3) 378,444 366,219 318,483

Recreation and cultural services (Schedule 3) 6,663,950 7,620,794 7,224,163

Utility services (Schedule 3) 3,650,644 5,443,290 5,224,359

Total Expenses 25,323,212 31,101,680 28,191,218

Surplus of Revenues over Expenses before Other Capital Contributions 19,200,467 671,713 217,720

Provincial/Federal capital grants and contributions (Schedule 4, 5) 1,256,144 2,647,483 817,524

Surplus of Revenues over Expenses 20,456,611 3,319,196 1,035,244

Accumulated Surplus, Beginning of Year 69,535,958 69,535,958 68,500,714

Accumulated Surplus, End of Year 89,992,569 72,855,154 69,535,958

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City of Estevan

Statement of Change in Net Financial Assets

For The Year Ended December 31, 2013 Statement 3


20,456,611 3,319,196 1,035,244

(Acquisition) of tangible capital assets (14,987,378) (12,134,755) (15,589,565)

Amortization of tangible capital assets - 5,136,306 5,144,029

Proceeds on disposal of tangible capital assets - - -

Loss on the disposal of tangible capital assets - - -

(Deficit) of capital expenses over expenditures (14,987,378) (6,998,449) (10,445,536)

(Acquisition) of supplies inventories - (48,905) (17,527)

(Acquisition) of prepayments and deferred charges - (349,620) 1,079

Consumption of stock and supplies inventory - - -

Surplus of expenses of other non-financial over expenditures - (398,525) (16,448)

Increase/Decrease in Net Financial Assets 5,469,233 (4,077,778) (9,426,740)

Net Financial Assets - Beginning of Year (30,770,813) (30,421,230) (20,994,490)

Net Financial Assets - End of Year (25,301,580) (34,499,008) (30,421,230)

Surplus (Deficit)

4

City of EstevanStatement of Cash FlowFor The Year Ended December 31, 2013 Statement 4

2013 2012

Cash provided by (used for) the following activities

Operating:

Surplus 3,319,196 1,035,244

Amortization 5,136,306 5,144,029

Loss (gain) on disposal of tangible capital assets - -

8,455,502 6,179,273

Change in net financial and non assets

Taxes Receivable - Municipal (408,272) (27,929)

Other Receivables 158,124 362,573

Land for Resale 537,036 2,253,576

Other Financial Assets 402,998 210,461

Accounts and accrued liabilities payable 204,034 1,284,858

Deposits 6,126 37,702

Deferred Revenue 92,056 233,054

Stock and supplies for use (48,906) (17,527)

Prepayments and Deferred Charges (349,619) 1,079

Net cash from operations 9,049,079 10,517,120

Capital:

Acquisition of capital assets (12,134,755) (15,589,565)

Proceeds from the disposal of capital assets - -

Net cash used for capital (12,134,755) (15,589,565)

Financing:

Long-term debt and capital lease issued 10,200,000 1,278,237

Long-term debt and capital lease obligations repaid (4,972,200) (4,304,841)

Other financing - bank indebtedness 1,094,674 8,099,846

Net cash from financing 6,322,474 5,073,242

Increase in cash resources 3,236,798 797

Cash - Beginning of Year 1,523,042 1,522,245

Cash - End of Year 4,759,840 1,523,042

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City of Estevan

Notes to the Financial Statements

For The Year Ended December 31, 2013

1. Significant accounting policies

a)

Entity

Estevan Police Department

Souris Valley Aquatic & Leisure Centre

c)

d) Revenue Recognition: Revenue is recognized as it become receivable under the terms of applicable funding agreements.

Funding received under funding arrangements that relate to a subsequent fiscal period are reflected as deferred revenue

on the statement of financial position in the year of receipt.

The City recognizes externally restricted inflows as revenue in the period the resources are used for the purposes specified in

accordance with an agreement of legislation. Until this time, the City records externally restricted inflows in deferred revenue.

Property tax revenue is based on assessments determined in accordance with Saskatchewan legislation and the formulas,

principals, and rules in the Saskatchewan Assessment Manual. Tax mill rates are established annually. Taxation revenues

are recorded at the time tax billings are issued. Assessments are subject to appeal. There are no contingent

losses on assessment appeals outstanding as of December 31, 2013.

Government transfers are recognized as revenue in the period that the event giving rise to the transfer occurred, providing the

transfers are authorized, any eligibility criteria have been met by the City and reasonable estimates for the amounts

can be made. Unearned government transfer amounts received but not earned will be recorded as deferred revenue. Earned

government transfer amounts not received will be recorded as an amount receivable and included in revenue.

e) Expenditure recognition: Expenditures are recognized in the period the goods and services are acquired and a

liability is incurred. They also include grants and contributions made when no direct goods or services were acquired.

Expenditures include amounts for interest on debt outstanding but do not include any amounts for principal repayments.

a) the transfer is authorized

b)

The financial statements of the municipality are prepared by management in accordance with the local government accounting standards established by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. Significant aspects of the accounting policies are as follows:

Basis of accounting: The financial statements are prepared using the accrual basis of accounting. The accrual

basis of accounting recognizes revenue as they become available and measurable; expenses are recognized as they are incurred and measurable as a result of the receipt of goods and services and the creation of a legal obligation to pay.

Reporting Entity: The financial statements presents the assets, liabilities and flow of resources of the

municipality. The entity is comprised of all of the organizations that are owned or controlled by the municipality and are, therefore, accountable to the Council for the administration of their financial affairs and resources. Entities included in these financial statements are as follows:

All inter-organizational transactions and balances have been eliminated.

Collection of Funds for Other Authorities: Collection of funds by the municipality for the school board,

municipal hail and conservation and development authorities are collected and remitted in accordance with relevant legislation. The amounts collected are disclosed in note 3.

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

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

Government Transfers: Government transfers are recognized as either expenditures or revenues in the period

that the events giving rise to the transfer occurred, as long as

b) eligibility criteria have been met by the recipient; and c) a reasonable estimate of the amount can be made.

f)

6

City of EstevanNotes to the Financial StatementsFor The Year Ended December 31, 2013

1. Significant accounting policies - continued

g)

j)

Asset Useful Life Useful Life

General Assets Infrastructure AssetsLand IndefiniteLand Improvements 15 Yrs Water & Sewer 35 to 40 YrsBuildings 20 to 40 Yrs Road Network Assets 15 to 40 YrsVehicles & Equipment Vehicles 15 Yrs Machinery and Equipment 5 to 20 Yrs

m) Tangible Capital Assets: All tangible capital asset acquisitions or betterments made throughout the

year are recorded at their acquisition cost. Initial costs for tangible capital assets that were acquired and developed prior to 2009 were obtained via historical cost information or using current fair market values discounted by a relevant inflation factor back to the point of acquisition. Donated tangible capital assets received are recorded at their fair market value at the date of contribution. The tangible capital assets that are recognized at a nominal value are disclosed on Schedule 6. The cost of these tangible capital assets less any residual value are amortized over the asset's useful life using the straight-line method of amortization. The City's tangible capital asset useful lives are estimated as follows:

Appropriated Reserves: Reserves are established at the discretion of Council to designate surplus

for future operating and capital transactions. Amounts so designated are described on Schedule 8.

Non-Financial Assets: Tangible capital and other non-financial assets are accounted for as assets

by the government because they can be used to provide government services in future periods. These assets do not normally provide resources to discharge the liabilities of the government unless they are sold.

k)

l) Inventories: Inventories of materials and supplies expected to be used by the municipality are valued

at the lower of cost or replacement cost. Inventories of land, materials and supplies held for resale are valued at the lower of cost or net realizable value. Cost is determined by the average cost method. Net realizable value is the estimated selling price in the ordinary course of business.

i)

h)

Deferred Revenue - Fees and charges: Certain user charges and fees are collected for which the

related services have yet to be preformed. Revenue is recognized in the period when the related expenses are incurred or services performed.

Local Improvement Charges: Local improvement projects financed by frontage taxes recognize any

prepayment charges as revenue in the period assessed.

Net-Financial Assets: Net-Financial Assets at the end of an accounting period are the net amount of

financial assets less liabilities outstanding. Financial assets represent items such as cash and those other assets on hand which could provide resources to discharge existing liabilities or finance future operations. These include realizable assets which are convertible to cash and not intended for consumption in the normal course of operations.

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City of Estevan




The segments (functions) are as follows:

Government contributions: Government contributions for the acquisition of capital assets are reported as capital

revenue and do not reduce the cost of the related asset.

Landfill liability: The Municipality of Estevan maintains a waste disposal site. The Municipality is unable to estimate

closure and post-closure costs. No amount has been recorded as an asset or a liability.

Capitalization of Interest: The municipality does not capitalize interest incurred while a tangible capital asset is

under construction.

Leases: All leases are recorded on the consolidated financial statement as either a capital or operating lease. Any

lease that transfers the majority of benefits and risk associated with the leased asset is classified as a capital lease. At the inception of a capital lease, an asset and a payment obligation are recorded at an amount equal to the lesser of the present value of the minimum lease payments and the asset's fair market value. Assets under capital leases are amortized on a straight line basis, over their estimated useful lives (lease term). Any other lease not meeting the before mentioned criteria is classified as a operating lease and rental payments are expensed as incurred.

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

p) Basis of Segmentation: The City has adopted the new Public Sector Accounting Board's recommendations

requiring financial information to be provided on a segmented basis. Municipal services have been segmented by grouping activities that have similar service objectives (by function). Revenues that 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.

n)

o)Measurement Uncertainty: The preparation of consolidated financial statements in conformity with generally

accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures during the period. Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided where considered necessary. The measurement of materials and supplies are based on estimates of volume and quality. The 'Opening Asset costs' of tangible capital assets have been estimated where actual costs were not available. Amortization is based on the estimated useful lives of tangible capital assets.

General Government: The general government segment provides for the administration of the municipality.

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

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

Planning and Development: The planning and development segment provides for neighbourhood development and sustainability.

Recreation and Culture: The recreation and culture segment provides for community services through the provision of recreation and leisure services.

Environmental and Public Health: The environmental segment provides waste disposal and other environmental services. The public health segment provides for expenses related to public health services in the municipality.

8

City of Estevan




q) Recent accounting pronouncements

Liability for contaminated sites

In June 2010, the Public Sector Accounting Board (PSAB) issued PS 3260 Liability for Contaminated Sites to

establish recognition, measurement and disclosure standards for liabilities associated with the remediation of contaminated

sites. The new section defines activities included in a liability for remediation, establishes when to recognize and how

to measure a liability for remediation, and provides the related financial statement presentation and disclosure

requirements.

PS 3260 is effective for fiscal years beginning on or after April 1, 2014. The City has not yet determined the

effect of the new section on its financial statements.

Financial Instruments

In June 2011, the Public Sector Accounting Board (PSAB) issued PS 3450 Financial Instruments to establish standards for

recognition, measurement, presentation and disclosure of financial assets, financial liabilities and non-financial derivatives.

As a result of issuance of PS 3450, there have been numerous consequential amendments to other sections.

PS 3450 us effective for fiscal years beginning on or after April 1, 2015. Earlier adoption is permitted. The PSAB

plans to review application of this Section by governments by December 31, 2013.

PS 3450 is applied prospectively in the fiscal year of initial adoption; therefore, financial statements of prior periods,

including comparative information, are not restated. The City has not yet determined the effect of these new standards

on its financial statements.

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

p) Basis of Segmentation (continued from previous page)

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City of Estevan



2. Cash

$264,700 (2012 - $264,700).

3. Taxes and grants in lieu receivable2013 2012

Municipal - Current 923,713 390,530 - Arrears - -

923,713 390,530 - Less Allowance for Uncollectibles - (55,467)

Total municipal taxes receivable 923,713 335,063

School - Current 511,522 274,435 - Arrears - -

Total school taxes receivable 511,522 274,435

Other - -

Total taxes and grants in lieu receivable 1,435,235 609,498

Deduct taxes receivable to be collected on behalf of other organizations (691,900) (274,435)

Municipal and grants in lieu taxes receivable 743,335 335,063

2013 2012

4. Other accounts receivable

Federal government 486,109 167,280

Utility 868,728 965,811

Trade 2,096,812 1,921,824

Other - 157,958

Total Other Accounts Receivable 3,451,649 3,212,873

Less Allowance for Uncollectibles (654,061) (257,162)

Net Other Accounts Receivable 2,797,588 2,955,711

The City of Estevan has restricted cash to provide upkeep of the cemetery amounting to

10

City of Estevan



5. Land for resale 2013 2012

Tax Title Property 39,138 68,130

Allowance for market value adjustment - (51,208)

Net Tax Title Property 39,138 16,922

Other Land 3,307,985 3,867,237

Allowance for market value adjustment - -

Net Other Land 3,307,985 3,867,237

Total Land for Resale 3,347,123 3,884,159

6. Long- term local improvement receivable

Local improvements that were paid in full by the city and will be repaid at the total cost plus interest at a rate of 35% (2012 - 35%) by rate payers are as follows:

Year Current Total2014 306,016 2015 358,044 2016 358,044 2017 311,128

Thereafter 1,092,015 Balance 2,425,247

7. Bank indebtedness

Bank indebtedness includes an operating loan amounting to $9,000,000 (2012 - $12,000,000) cumulative of both cash and bank indebtedness that is bearing interest at prime less 0.5% (2012 - prime less 0.5%) with assets are pledged as collateral.

11

City of Estevan



8. Deferred revenue

2013 2012

Uniform deposit - 185

Land sales option deposits - 63,252

Surety deposits 917,440 761,947

Total deferred revenue 917,440 825,384

9. Long-term debt

The debt limit of the city is $55,000,000 (2012 - $45,000,000) of which 79% (2012 - 83%) has been utilized as of

December 31, 2013.

Future principal and interest payments are as follows:

Year Principal Interest Current Total Prior Year Total

2014 4,086,262 787,979 4,874,241 5,662,220

2015 3,412,934 652,609 4,065,543 4,718,152

2016 3,058,297 545,238 3,603,535 4,148,773

2017 3,126,591 488,578 3,615,169 4,103,747

Thereafter 15,943,000 1,232,948 17,175,948 3,383,093

Balance 29,627,084 3,707,352 33,334,436 22,015,985

rates that range from prime less .5% to fixed rates of 5.5%, matures from March 2021 to September 2026.

10. Lease obligations

Year

2014 509,906

2015 445,581

2016 338,410

2017 229,819

2018 222,056

Thereafter 110,312

Total future minimum lease payments 1,856,084

(219,117)

Capital lease liability 1,636,967

rates that range from 4.93% to 6.66%, and mature from October 2014 to June 2019.

Future minimum lease payments under the capital leases together with the balance of the obligation

Lease obligations are repayable in monthly installments ranging from $1,545 to $18,504, bearing

Bank loans are repayable in monthly installments ranging from $7,490 to $118,901, bearing interest

Amounts representing interest at a weighted average rate

of 5.76%

12


11. Intergovernmental Transactions

2013 2012

CAPITAL GRANTSGovernment of Saskatchewan GTF (Gas Tax Program) 626,056 616,447 MRIF (Leisure Centre) 76,494 87,706 Transit assistance 59,289 43,371 Saskatchewan infrastructure Growth 1,678,155 366,126 Airport grant 131,231 -

Other Governments RM of Estevan 70,000 95,000

Total 2,641,225 1,208,650

OPERATING GRANTS: UnconditionalMunicipal Government Revenue Sharing 2,350,915 2,096,321

OPERATING GRANTS: Conditional

Sask. Justice Funded Police Officers 345,000 300,000

Sask. Municipal Affairs

Grants In Lieu 35,577 32,611

Sask. Corrections & Public Safety P.D.A.P - Flooding 449,666 963,229

Sask. Urban Municipalities Association (SUMA) Recycling program 11,163 7,618

Saskatchewan lotteries Operating - 58,185

Sask. Parks, Recreation & Culture Association Operating 10,000 10,000

851,406 1,371,643

Total 3,202,321 3,467,964

Intergovernmental transactions were conducted in the normal course of operations and are measured

at the exchange amount, which is the amount of consideration established and agreed to by the

related parties.

13


12. Comparative figures

Prior year comparative figures have been restated to conform to the current year's presentation.

13. Contingent Liabilities

In the ordinary course of business, various claims and lawsuits are brought against The City. It is theopinion of management that settlement of these actions will not result in any material liabilities beyondany amounts already accrued. No provision has been made for pending expropriations of land beyond payments already made to affected property owners. Any payments made by The City pursuant to expropriation settlement is charged to the surplus of revenues over expenses in the year of settlement.

14. Budget Information

During the year, the Council approved the operating budget based on planned expenses and current year revenue.

15. Guarantees

As part of a an agreement with the Estevan TS&M Woodlawn Golf Course the City has a residual valueguarantee on the mortgage of the land and buildings of the golf course. The maximum amount payableunder the guarantee is $500,000 (2012 - $500,000).

As at December 31, 2013 no liability has been recorded associated with this guarantee.

14

City of Estevan

Schedule of Taxes and Other Unconditional Revenue

For The Year Ended December 31, 2013 Schedule 1


TAXES

General municipal tax levy 10,270,861 10,246,437 7,967,869

Abatements and adjustments (20,500) (47,901) (40,154)

Discount on current year taxes (40,000) (48,362) (49,045)

Net Municipal Taxes 10,210,361 10,150,174 7,878,670

Trailer license fees 92,800 183,880 92,816

Penalties on tax arrears 87,000 56,617 47,905

Special tax levy 2,171,893 520,283 311,895

Other - 107,106 83,533

Total Taxes 12,562,054 11,018,060 8,414,819

UNCONDITIONAL GRANTS

Equalization (Revenue Sharing) 2,351,000 2,350,915 2,096,321

Total Unconditional Grants 2,351,000 2,350,915 2,096,321

GRANTS IN LIEU OF TAXES

Federal - 2,271 1,627

Provincial

S.P.C. Electrical 600,000 649,651 587,633

SaskEnergy Gas 300,000 394,035 291,878

Local/Other

Housing Authority - 120,529 91,705

Other Government Transfers

S.P.C. Surcharge 1,200,000 1,188,109 1,191,344

Total Grants in Lieu of Taxes 2,100,000 2,354,595 2,164,187

TOTAL TAXES AND OTHER UNCONDITIONAL REVENUE 17,013,054 15,723,570 12,675,327

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City of Estevan

Schedule of Operating and Capital Revenue by Function

For The Year Ended December 31, 2013 Schedule 2 - 1


GENERAL GOVERNMENT SERVICES

Operating

Other Segmented Revenue

Fees and Charges

- Custom work 920,000 959,701 965,558

- Sales of supplies 35,000 80,127 57,326

- Other (Fees & permits) 1,429,700 378,314 160,542

Total Fees and Charges 2,384,700 1,418,142 1,183,426

- Land sales - gain 4,892,258 1,508,764 2,081,772

- Investment income and commissions 100,000 1,980 577

- Other (Rentals) 85,000 109,922 242,970

Total Other Segmented Revenue 7,461,958 3,038,808 3,508,745

Conditional Grants

- Other (Building Canada Fund) - - -

- Other (PDAP funding) 1,000,000 449,666 963,229

Total Conditional Grants 1,000,000 449,666 963,229

Total Operating 8,461,958 3,488,474 4,471,974

Capital

Conditional Grants

- Gas Tax 842,773 626,056 616,447

- Canada/Sask Municipal Rural Infrastructure Fund - 87,706

- Other (Community builds) 300,000 135,178 -

Total Capital 1,142,773 761,234 704,153

Total General Government Services 9,604,731 4,249,708 5,176,127

PROTECTIVE SERVICES

Operating


Fees and Charges

- Other 109,000 181,090 171,276

Total Fees and Charges 109,000 181,090 171,276

- Other (Court, violations & enforcement) 245,500 394,886 299,036

Total Other Segmented Revenue 354,500 575,976 470,312

Conditional Grants

- Other (Special constable) 400,000 345,000 300,000

Total Conditional Grants 400,000 345,000 300,000

Total Operating 754,500 920,976 770,312

Total Protective Services 754,500 920,976 770,312

16

City of Estevan




TRANSPORTATION SERVICES

Capital

Conditional Grants

- Other (Hwy 47) - 1,756,960 -

Total Transportation Services - 1,756,960 -

ENVIRONMENTAL AND PUBLIC HEALTH SERVICES

Operating


Fees and Charges

- Waste and Disposal Fees 788,000 1,101,656 641,406

- Other (Cemetery fees) 52,000 27,360 35,570

Total Fees and Charges 840,000 1,129,016 676,976

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

- Other (Specify) - - -

Total Other Segmented Revenue 840,000 1,129,016 676,976

Total Operating 840,000 1,129,016 676,976

Capital

Conditional Grants

- Transit for Disabled 43,371 59,289 43,371

Total Capital 43,371 59,289 43,371

Total Environmental and Public Health Services 883,371 1,188,305 720,347

17

City of Estevan




PLANNING AND DEVELOPMENT SERVICES

Operating


Fees and Charges

- Maintenance and Development Charges 887,902 638,785 23,167


Total Fees and Charges 887,902 638,785 23,167

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


Total Other Segmented Revenue 887,902 638,785 23,167

Total Operating 887,902 638,785 23,167

Total Planning and Development Services 887,902 638,785 23,167

RECREATION AND CULTURAL SERVICES

Operating


Fees and Charges

- Other 3,183,650 2,908,558 2,261,060


Conditional Grants

- Donations 343,310 365,330 918,604

- Other (Provincial agencies) 2,635,100 172,405 489,277

Total Conditional Grants 2,978,410 537,735 1,407,881

Total Operating 6,162,060 3,446,293 3,668,941

Capital

Conditional Grants

- Local government 70,000 70,000 70,000

Total Capital 70,000 70,000 70,000

Total Recreation and Cultural Services 6,232,060 3,516,293 3,738,941

18

City of Estevan




UTILITY SERVICES

Operating


Fees and Charges

- Water and sewer 10,404,205 6,426,279 6,122,241


Total Operating 10,404,205 6,426,279 6,122,241

Capital

Conditional Grants

- Other (Provincial water and sewer grant) - - -

Total Capital - - -

Total Utility Services 10,404,205 6,426,279 6,122,241

TOTAL OPERATING AND CAPITAL REVENUE BY FUNCTION 28,766,769 18,697,306 16,551,135

SUMMARY


Total Conditional Grants 4,378,410 1,332,401 2,671,110

Total Capital Grants and Contributions 1,256,144 2,647,483 817,524

TOTAL OPERATING AND CAPITAL REVENUE BY FUNCTION 28,766,769 18,697,306 16,551,135

19

City of EstevanSchedule of Expenses by FunctionFor The Year Ended December 31, 2013 Schedule 3 - 1


GENERAL GOVERNMENT SERVICES

Council remuneration and travel 157,000 154,554 126,159

Wages and benefits 1,443,744 1,485,374 1,258,288

Professional/Contractual services 743,500 871,593 666,423

Utilities 52,000 57,468 79,241

Maintenance, materials and supplies 61,553 818,983 142,189

Grants and contributions - operating 478,904 456,840 507,359

Amortization - 86,375 78,346

Interest 1,198,019 1,133,143 740,966

Allowance for uncollectibles - 4,838 78,058

Other 287,123 742,027 291,802

Total Government Services 4,421,843 5,811,195 3,968,831

PROTECTIVE SERVICES

Police protection



Utilities 66,700 77,991 72,817

Maintenance, material and supplies 284,200 210,055 165,712

Grants and contributions - operating - - 8,000

Fire protections

Wages and benefits 391,640 397,875 377,001


Utilities 16,900 28,572 14,969

Maintenance, material and supplies 342,448 101,155 84,531


Other 162,000 - -

Total Protective Services 5,155,878 4,713,030 4,794,386

TRANSPORTATION SERVICES

Wages and benefits 1,145,438 946,305 849,301

Professional/Contractual Services 866,106 735,207 752,873

Utilities 366,409 332,250 384,114

Maintenance, materials, and supplies 1,359,421 1,544,407 1,208,120

Amortization - 2,195,547 2,290,131

Total Transportation Services 3,737,374 5,753,716 5,484,539

20

City of Estevan

Schedule of Expenses by Function



ENVIRONMENTAL AND PUBLIC HEALTH SERVICES



Utilities 2,800 17,770 4,125

Maintenance, materials and supplies 316,761 248,737 192,031


Loss on sale of assets - - -

Total Environmental and Public Health Services 1,315,079 1,393,436 1,176,457

PLANNING AND DEVELOPMENT SERVICES


Professional/Contractual Services 109,900 142,434 50,353


Other 600 651 5,433

Total Planning and Development Services 378,444 366,219 318,483

RECREATION AND CULTURAL SERVICES



Utilities 458,410 508,604 731,720

Maintenance, materials and supplies 1,034,590 893,097 1,127,133

Grants and contributions - operating 723,050 716,314 688,149


Interest - - -

Other 819,000 1,108,738 733,308

Total Recreation and Cultural Services 6,663,950 7,620,794 7,224,163

21

City of Estevan

Schedule of Expenses by Function



UTILITY SERVICES


Professional/Contractual services 721,200 1,092,216 496,797

Utilities 262,500 241,727 282,390

Maintenance, materials and supplies 1,028,533 777,567 981,792

Amortization - 1,795,722 1,742,062

Interest - 5,387 394,888

Total Utility Services 3,650,644 5,443,290 5,224,359

TOTAL EXPENSES BY FUNCTION 25,323,212 31,101,680 28,191,218

22

City of EstevanSchedule of Segment Disclosure by FunctionFor The Year Ended December 31, 2013 Schedule 4

General

Government

Protective

Services

Transportation

Services

Environmental

& Public Health

Planning and

Development

Recreation and

Culture Utility Services Total

Revenues (Schedule 2)

Fees and Charges 1,418,142 181,090 - 1,129,016 638,785 2,908,558 6,426,279 12,701,870

Tangible Capital Asset Sales - Gain (loss) - - - - - - - -

Land Sales - Gain 1,508,764 - - - - - - 1,508,764

Investment Income and Commissions 1,980 - - - - - - 1,980

Other Revenues 109,922 394,886 - - - - - 504,808

Grants - Conditional 449,666 345,000 - - - 537,735 - 1,332,401

- Capital 761,234 - 1,756,960 59,289 - 70,000 - 2,647,483

Total revenues 4,249,708 920,976 1,756,960 1,188,305 638,785 3,516,293 6,426,279 18,697,306

Expenses (Schedule 3)

Wages & Benefits 1,639,928 3,742,060 946,305 271,892 219,649 3,005,223 1,530,671 11,355,728

Professional/ Contractual Services 871,593 345,028 735,207 714,955 142,434 681,892 1,092,216 4,583,325

Utilities 57,468 106,563 332,250 17,770 - 508,604 241,727 1,264,382

Maintenance Materials and Supplies 818,983 311,210 1,544,407 248,737 - 893,097 777,567 4,594,001

Grants and Contributions 456,840 - - - - 716,314 - 1,173,154

Amortization 86,375 208,169 2,195,547 140,082 3,485 706,926 1,795,722 5,136,306

Interest 1,133,143 - - - - - 5,387 1,138,530

Allowance for Uncollectibles 4,838 - - - - - - 4,838

Other 742,027 - - 651 1,108,738 - 1,851,416

Total expenses 5,811,195 4,713,030 5,753,716 1,393,436 366,219 7,620,794 5,443,290 31,101,680

Surplus (Deficit) by Function (1,561,487) (3,792,054) (3,996,756) (205,131) 272,566 (4,104,501) 982,989 (12,404,374)

Taxation and other unconditional revenue (Schedule 1) 15,723,570

Net Surplus (Deficit) 3,319,196

23

City of EstevanSchedule of Segment Disclosure by FunctionFor The Year Ended December 31, 2012 Schedule 5

General

Government

Protective

Services

Transportation

Services

Environmental

& Public Health

Planning and

Development

Recreation and

Culture Utility Services Total

Revenues (Schedule 2)

Fees and Charges 1,183,426 171,276 - 676,976 23,167 2,261,060 6,122,241 10,438,146

Tangible Capital Asset Sales - Gain (loss) - - - - - - - -

Land Sales - Gain 2,081,772 - - - - - - 2,081,772

Investment Income and Commissions 577 - - - - - - 577

Other Revenues 242,970 299,036 - - - - - 542,006

Grants - Conditional 963,229 300,000 - - - 1,407,881 - 2,671,110

- Capital 704,153 - - 43,371 - 70,000 - 817,524

Total revenues 5,176,127 770,312 - 720,347 23,167 3,738,941 6,122,241 16,551,135

Expenses (Schedule 3)

Wages & Benefits 1,384,447 3,576,112 849,301 233,353 259,358 2,667,135 1,326,430 10,296,136

Professional/ Contractual Services 666,423 642,890 752,873 609,625 50,353 613,244 496,797 3,832,205

Utilities 79,241 87,786 384,114 4,125 - 731,720 282,390 1,569,376

Maintenance Materials and Supplies 142,189 250,243 1,208,120 192,031 - 1,127,133 981,792 3,901,508

Grants and Contributions 507,359 8,000 - - - 688,149 - 1,203,508

Amortization 78,346 229,355 2,290,131 137,323 3,339 663,474 1,742,062 5,144,030

Interest 740,966 - - - - - 394,888 1,135,854

Allowance for Uncollectibles 78,058 - - - - - - 78,058

Other 291,802 - - - 5,433 733,308 - 1,030,543

Total expenses 3,968,831 4,794,386 5,484,539 1,176,457 318,483 7,224,163 5,224,359 28,191,218

Surplus (Deficit) by Function 1,207,296 (4,024,074) (5,484,539) (456,110) (295,316) (3,485,222) 897,882 (11,640,083)

Taxation and other unconditional revenue (Schedule 1) 12,675,327

Net Surplus 1,035,244

24

City of EstevanSchedule of Tangible Capital Assets by ObjectFor The Year Ended December 31, 2013 Schedule 6

2012

Infrastructure

Assets

General/

Infrastructure

Land

Land

Improvements Buildings Vehicles

Machinery &

Equipment Linear assets

Assets Under

Construction Total Total

Asset cost

Opening Asset costs 1,239,314 2,917,959 46,383,502 4,023,069 10,551,443 121,112,089 186,227,376 170,637,811

Additions during the year - 45,951 1,943,628 56,196 675,055 9,413,925 - 12,134,755 15,589,565

Disposals and write-downs during the year - - - - - - - - -

Transfers (from) assets under construction - - - - - - - -

Closing Asset Costs 1,239,314 2,963,910 48,327,130 4,079,265 11,226,498 130,526,014 - 198,362,131 186,227,376

Accumulated Amortization Cost

Opening Accumulated Amortization Costs - 1,103,961 12,748,441 1,142,782 6,982,821 65,282,818 - 87,260,823 82,116,794

Add: Amortization taken - 151,875 785,971 273,958 770,133 3,154,369 - 5,136,306 5,144,029

Less: Accumulated amortization on

disposals - - - - - - - - -

Closing Accumulated

Amortization Costs - 1,255,836 13,534,412 1,416,740 7,752,954 68,437,187 - 92,397,129 87,260,823

Net Book Value 1,239,314 1,708,074 34,792,718 2,662,525 3,473,544 62,088,827 - 105,965,002 98,966,553

2013

Assets

Am

ort

izati

on

General Assets

25

City of EstevanSchedule of Tangible Capital Assets by FunctionFor The Year Ended December 31, 2013 Schedule 7

2012

General

Government

Protective

Services

Transportation

Services

Environmental &

Public Health

Planning &

Development

Recreation &

Culture

Water &

Sewer Total Total

Asset cost

Opening Asset costs 1,716,514 3,914,352 73,693,099 1,895,492 104,565 38,964,449 65,938,905 186,227,376 170,637,811

Additions during the year 59,997 57,416 7,659,921 28,523 - 1,540,510 2,788,388 12,134,755 15,589,565

Disposals and write-downs during the year - - - - - - - - -

Closing Asset Costs 1,776,511 3,971,768 81,353,020 1,924,015 104,565 40,504,959 68,727,293 198,362,131 186,227,376

Accumulated Amortization Cost

Opening Accumulated Amortization Costs 655,670 1,615,727 50,040,160 352,261 10,321 7,603,380 26,983,304 87,260,823 82,116,794

Add: Amortization taken 86,374 208,169 2,195,548 140,082 3,486 706,926 1,795,721 5,136,306 5,144,029

Less: Accumulated amortization on disposals - - - - - - - -

Closing Accumulated Amortization Costs 742,044 1,823,896 52,235,708 492,343 13,807 8,310,306 28,779,025 92,397,129 87,260,823

Net Book Value 1,034,467 2,147,872 29,117,312 1,431,672 90,758 32,194,653 39,948,268 105,965,002 98,966,553

Assets

Am

ort

izati

on

2013

26

City of Estevan

Schedule of Accumulated Surplus


2012 Changes 2013

UNAPPROPRIATED SURPLUS (3,543,046) 1,409,989 (2,133,057)

APPROPRIATED RESERVES

Machinery and Equipment -

Public Reserve -

Capital Trust -

Utility 148,702 138,558 287,260

Total Appropriated 148,702 138,558 287,260

NET INVESTMENT IN TANGIBLE CAPITAL ASSETS

Tangible capital assets (Schedule 6) 98,966,553 6,998,449 105,965,002

Less: Related debt (26,036,251) (5,227,800) (31,264,051)

Net Investment in Tangible Capital Assets 72,930,302 1,770,649 74,700,951

Total Accumulated Surplus 69,535,958 3,319,196 72,855,154

27

City of Estevan

Schedule of Mill Rates and Assessments


Residential Seasonal Commercial Potash

Agriculture Residential Condominium Residential & Industrial Mine(s) Total

Taxable Assessment 539,290 636,963,870 100,840,180 - 323,961,800 1,062,305,140

Regional Park Assessment -

Total Assessment 1,062,305,140

Mill Rate Factor(s) - - - - - Total Base/Minimum Tax (generated for

each property class) - 138,600 - - 9,100 147,700

Total Municipal Tax Levy (include base

and/or minimum tax and special levies) 3,859 4,700,420 767,091 - 4,775,068 10,246,437

MILL RATES: MILLS

Average Municipal* 9.6455

Average School* 6.0242

Uniform Municipal Mill Rate 9.2000

* Average Mill Rates (multiple the total tax levy for each taxing authority by 1000

and divide by the total assessment for the taxing authority.

PROPERTY CLASS

28

City of EstevanSchedule of Council RemunerationFor The Year Ended December 31, 2013 Schedule 10

Name Remuneration

Reimbursed

Costs TotalLori Carr 8,402 566 8,968 Greg Hoffort 7,869 1,068 8,937 Chris Istace 7,602 - 7,602 Brian Johnson 7,869 457 8,326 Roy Ludwig 24,533 1,412 25,945 Dennis Moore 9,735 457 10,192 Kevin Smith 8,269 1,402 9,671

Total 74,279 5,362 79,641

29

city of estevancity of estevan statement of change in net financial assets for the year ended...

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