Oakville Annual Report 2005

Town of Oakville 2005 Annual Report

Contents Table of

Oakville is a

dynamic community,

located on the

shores of Lake

Ontario. Home

to over 158,000

people, Oakville

radiates small-town

charm, natural

beauty and cultural

vitality while

providing all the

advantages of an

economically

diverse and well-

serviced urban

community.

Oakville 2005 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Message from the Mayor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Members of Town Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Message from the Town Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Strategic Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Key Accomplishments 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Key Challenges and Actions – Looking Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Treasurer’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Comprehensive Financial Management & Planning Policies . . . . . . . . . . . . . . . . . . 16

Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Five-Year Review (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Preparing for the Future…Building on our FoundationTown services span environmental stewardship and

protection, parks, trails, forests, harbours, recreation and

community centres, building and heritage permits, by-laws

and licensing, transit, land use planning, roads and works,

and fire prevention and protection.

Staff is committed to superior service delivery, while Town

Council continues to look ahead to ensure we preserve the

Town’s distinct quality of life.

1

HighlightsOakville 2005

Comparative Tax Rates in Halton Region &/or GTA

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0.5 %

1.0 %

1.5 %

2.0 %

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120,000

125,000

130,000

135,000

140,000

145,000

150,000

155,000

160,000

2000 2001 2002 2003 2004 2005

140.

459

144,

738

148,

800

152,

400

155,

700

158,

700

2

5

8

8

11

12

14

17

22Fire

Road Network

Corporate Support

Oakville Transit

Parks and Open Space

Oakville Library

Recreation and Culture

Information Technology

Community Development

$ PER $100 PAID IN TAXES 2005 RESIDENTIAL TAX RATE

How Your Tax Dollars are Spentwithin the Town

Population Growth in Oakville

T O W N O F O A K V I L L E A N N U A L R E P O R T 2 0 0 5

Town 32%

Education 27%

Region 41%

Who Receives Your Tax Dollars

Residential

Residential

MayorMessage from the

The Town’s

guiding mission:

To promote

quality of life

by providing

quality services

valued by our

community.

2 T O W N O F O A K V I L L E A N N U A L R E P O R T 2 0 0 5

On behalf of Town Council, I am proud to present the 2005 Annual Report for the Town of Oakville. When sworn into office for our 2004-2006 term,we promised to be a Council of action. We put in writing our commitment

to creating a town that works for all its citizens, and sustaining the enviable lifestylewe all cherish. The Town’s guiding mission: to promote quality of life by providingquality services valued by our community.

We also worked together to produce eight strategic priorities to guide us over ourthree-year term that directly respond to the wishes of our residents, from protectingour environment and improving traffic and transportation, to managing growth andsupporting economic development. In 2005, we took significant steps forward toachieve these priorities.

The Town’s lobbying efforts for gasoline tax dollars to be divided more fairly amongthe three orders of government resulted in Oakville receiving more than $11.7 millionin federal gas tax revenues over the next five years for infrastructure renewal and$961,000 for public transit over the next two years. In addition, Council’s leadershipon Ontario Municipal Board (OMB) reform helped ensure the Ontario governmentfollowed through on its promise to reform the OMB. The introduction of Bill 51, An Act to Amend the Planning Act and Other Acts, will help provide municipalities with greater responsibility for planning decisions in their communities. We anxiouslyawait third reading and implementation.

To bring awareness of these challenges and new opportunities for our increasinglydiverse community, we held a Dialogue on Local Government with over 100 local residents, business people, Members of Council, and former Winnipeg Mayor GlenMurray. This event encouraged discussion on what we need to do to ensure the continued success of our community.

Moving forward, the challenge for Oakville will be to sustain its quality of life. To do so, weneed to work closely with our provincial and federal counterparts to ensure that munici-palities have access to stable revenue sources that match our needs for balanced growth,traffic and transportation improvements, and environmental protection and balance.

I would like to take this opportunity to thank all members of Council and our staff whoseefforts help make Oakville one of the most desirable places to live, work and do business.

Sincerely,

Ann MulvaleMayor, Town of Oakville

3

Allan Elgar Renee Sandelowsky Jeff Knoll Marc Grant Janice Wright Tom Adams

Mike Lansdown Ralph Robinson Fred Oliver Cathy Duddeck Keith Bird Chris Stoate

WARD 1• Mike Lansdown

Regional and Town Councillor• Ralph Robinson

Town Councillor

WARD 2• Fred Oliver

Regional and Town Councillor• Cathy Duddeck

Town Councillor

WARD 3• Keith Bird

Regional and Town Councillor • Chris Stoate

Town Councillor

WARD 4• Allan Elgar

Regional and Town Councillor• Renee Sandelowsky

Town Councillor

WARD 5• Jeff Knoll

Regional and Town Councillor• Marc Grant

Town Councillor

WARD 6• Janice Wright

Regional and Town Councillor• Tom Adams

Town Councillor

Town Council Members of

Council is the legislative governing body for the Town of Oakville and consists of the Mayor, elected at large by voters in the Town, and 12 councillors each elected by voters in their respective ward. Each ward is

represented by two councillors – one representing the Town and one representingthe Town and the Regional Municipality of Halton. Regional Councillors sit onRegional Council along with representatives from the Towns of Milton andHalton Hills, and the City of Burlington. Council’s term of office is three years.The current term began on December 1, 2003, and will end November 30, 2006.

ManagerThe Town of

Oakville places

great emphasis

on planning for

the current and

future needs of

all residents

and businesses.


The Corporation of the Town of Oakville is committed to providing cost-effective,quality services that respond to the needs of our growing community. TheTown employs over 900 dedicated staff who provide the services residents

and businesses rely upon on a daily basis including emergency services, recreationand culture programs, parks and trails, road construction, winter road maintenance,building permits, and countless others. Our annual report gives us an opportunity toupdate you on the Town’s progress as well as highlight the challenges that lie ahead.

In 2005, we continued to move forward on our Blueprint Oakville planning process.The Town places great emphasis on planning for the current and future needs of allresidents and businesses. During this time of rapid growth and change, it is criticalthat we manage the expected growth in the Town responsibly and prudently so thatour residents can continue to enjoy living in a healthy, safe and prosperous commu-nity. The resulting Master Plans will take centre stage in 2006.

Our draft Environmental Strategic Plan, which was approved by Council in December2005, outlines initiatives the Town and the community can support to protect andimprove Oakville’s environment.

The Town’s Master Plan for Parks, Recreation, Culture and Libraries will projectexpected demand for facilities and programs from now until 2030. Our NorthOakville Secondary Plan will set out a vision for the development of the lands northof Dundas Street. The Secondary Plan is expected to be the focus of a lengthy OntarioMunicipal Board hearing in 2006. Implementation of the Town’s Transportation MasterPlan, which highlights the need for both transit and roads, will also move forward in

2006 as the impact of development in North Oakville becomes clearer.

Looking ahead, factors that have been critical to our success so far – citizeninput, leadership from Council, fiscally responsible management and employeecommitment and innovation – will be critical to our future success. Fortunately,I work with a dedicated and talented group of employees at the Town ofOakville. With their support, I am confident that the Town will continue to be the community of choice for its residents and businesses.

TownMessage from the

Sincerely,

M. Joann ChechalkCAO/Town ManagerTown of Oakville

Effective Transportation

5

Community Identity

Environmental Stewardship

Principled Land Use Planning

Financial ResponsibilityOpen Government

Intergovernmental Advocacy

Local Economic Vitality

Council has identified eight strategic priorities to guide the organization over the next few years as it delivers on its mission of providing quality services

valued by our community and on the key goal of “Quality of Life.”

StrategicPriorities

Community Identity• The Town acquired the former QE Park School property located in Bronte and

will address how it can be used as part of the Parks, Recreation, Culture andLibrary Master Plan.

• The Town’s new R-Zone policy promotes a Respect and Responsibility approach to reduce violence, vandalism and inappropriate behaviour in Town recreation and cultural facilities, parks/trails and sports fields.

• The new Cultural Advisory Committee recognizes the benefits of gathering input from the community on arts, culture and heritage issues.

• The Town, together with Halton Helping Hands of Oakville, launched a three-yearpilot program for a user-paid driveway snow windrow removal service for seniorsand the physically challenged.

• The Oakville Public Library created new multilingual collections, a teen writingcontest, a teen lounge at the Central branch, and a new Book Nook in theClearview Early Years Centre.

• The 2005 Accessibility Plan completed a number of projects to improve services for people with disabilities including removing access barriers to buildings andsidewalks, as well as improving the Town’s web and telephone system.

• A comprehensive Ice Allocation Policy allocates existing ice times in a fair and equitablemanner between Oakville’s two hockey leagues, figure skating and speed skating clubs.

• The groundbreaking ceremony for the Glen Abbey Community Center expansionproject took place in April. The new gymnastics facility (a partnership with theOakville Gymnastics Club) opened in September. Further expansion projects will

be completed in 2006.

Environmental Stewardship• Town Council approved a community-based Environmental

Strategic Plan (ESP) to enhance environmental stewardship of the Town.

• New environmental outreach activities included the GTA-wide 20-Minute Makeover, the Clean Air Commute, the Yellow Fish Roadprogram, the ‘Doors Closed’ Campaign, Summer Fun Bus Day, andOakville’s One-Tonne Challenge.

• The Town successfully completed a prescribed burn at IroquoisShoreline Woods Park. This deliberately set, low temperature fireencourages the establishment of certain natural and planted seedlings.

2005 Key Accomplishments

In a moving

ceremony held on

November 10, 2005,

the Town unveiled

a war memorial to

recognize Trafalgar

Township veterans

who served in

World War I

and II, and the

Korean War.


• The Town installed the first phase of a CentralizedIrrigation System to bring all sports field irrigation systemsunder a central control for improved irrigation managementand monitoring.

• The Town initiated a testing, monitoring and maintenanceprogram for the Town’s storm water management pondsand storm sewer outfalls. Other projects include assessmentstudies for creek channels, shoreline protection, flood risksand Lake Ontario phosphorous testing.

• Major stream rehabilitation took place on the FourteenMile Creek channel between Lakeshore Road and RebeccaStreet, and emergency channel repairs and rehabilitationwere done on Munn’s Creek north of McCraney Street.

Principled Land Use Planning• In June, Town Council authorized a review of the Town’s

Official Plan to ensure the Plan directs future growth anddevelopment as well as the conservation of natural heritagelands in an appropriate manner.

• The Town reviewed and commented on several new planning initiatives and reforms from the ProvincialGovernment including the new Provincial PolicyStatement issued under The Planning Act, the newGreenbelt Plan and the draft GrowthManagement Plan for the GreaterGolden Horseshoe (Places to Grow).

• The Planning Services Departmentdealt with increasingly complexdevelopment, redevelopment andinfill applications and related OntarioMunicipal Board hearings. The Towncontinued with its practice of inform-ing and obtaining input from inter-ested parties early in the developmentapplication process.

• The Town prepared for the implemen-tation of the new mandated timeframesfor permit issuance as a result ofamendments to the Ontario Building

Code (Bill 124 – the Building CodeStatue Law Amendment Act).Approximately 40 building and fire prevention staffhave demonstrated new BuildingCode knowledge and will continuetraining for the new 2006 Code.

Financial Responsibility • The Town implemented the provincial community use of

schools initiative, which provides community groups with28 percent reduction in costs for school rentals.

• The Town saved in excess of $380,000 as a result of its participation in a purchasing co-op with other Haltonmunicipalities.

• The Town was proactive in obtaining $663,000 throughthe Canada Ontario Municipal Rural Infrastructure Fund(COMRIF) for local culvert improvement work. The objec-tive of the COMRIF is to improve infrastructure in munici-palities with populations under 250,000.

• As part of the Corporate Rates and Fees Review initiative,the Town reviewed its permit application fee structure,which ensured all fees adequately recovered the cost of

providing services.

• The Town replaced its current financialsystems, with an integrated financialand human resource system, to pro-vide management with the toolsrequired to meet the increasingdemands the Town experiences inthese areas.

• The Town of Oakville was awardedthe Government Finance OfficersAssociation (GFOA) – CanadianAward for Financial Reporting.

• The Town received the GFOA distin-guished Budget Presentation Awardfor the fiscal year beginning January1, 2005.

Did you know…• Once the Centralized Irrigation

System is fully implemented in 2006,Oakville will be considered leadingedge in terms of technology and bestmanagement practices with regard tointegrated pest management andwater conservation and efficiency.

• Oakville’s population has grown byapproximately 20 percent since 1996.

• Over 1000 grade four students madethe 2005 Arbor Week celebrations ahuge success by planting 28 sugarmaple trees at 28 schools sitesacross Oakville.

7

Effective Transportation• Oakville Transit completed the design of the Uptown Core Transit Terminal and

initiated acquisition of the land in 2005. Construction of the terminal will be com-pleted in 2006.

• Oakville Transit improved transit amenities for the community with five new lowfloor vehicles, walkways at 65 bus stop locations, and 14 new bus shelters.

• Congestion on Third Line was significantly reduced as a result of the new Third Line/QEW interchange, and the widening of Third Line between the QEW and Dundas Street.

• The Town was heavily involved in the review of proposed QEW improvements bythe Ontario Ministry of Transportation between Trafalgar Road and Third Line, andat the QEW/Bronte Road interchange, as well as proposed road network improve-ments by the Region of Halton on Dundas Street, Bronte Road and Dorval Drive.

• Oakville continued to assist the neighbouring municipality of Milton by managingand operating their public transit system (at full cost recovery), and expanded theservice by adding two additional routes.

• Winter maintenance operations were enhanced by purchasing state-of-the-art snowremoval equipment, establishing more efficient routing of fleet vehicles, and imple-menting a Winter Storm Emergency Communication call centre.

Local Economic Vitality• Feedback from a series of sector roundtable meetings resulted in the Oakville

Economic Development Alliance (OEDA) refocusing its economic developmentstrategy to ensure the Town remains a desirable place to invest and to do business.

• WNED TV Buffalo featured Oakville in a one-hour profile of the Town for its “OurTown” series. Twenty-five residents volunteered as videographers to film Oakville asseen through their eyes to create a heartfelt tribute to the community.

• The OEDA received several marketing and tourism awards including the OakvilleBeaver’s National Newspaper Award for the Oakville Visitors Guide, first place awardfrom the Economic Developers Association of Canada (EDCO) for the OEDATourism Website, and two international marketing awards in the Financial Times –Foreign Direct Investment Magazine’s Canadian Cities and Provinces of the Future2005-06 Competition.

• Several businesses chose Oakville as their new home including The Weather Networkand Automodular Corporation.

2005 Key Accomplishments

Oakville will

receive more than

$11.7 million

in federal gas tax

revenues over the

next five years for

infrastructure

renewal, and

$961,000 for

public transit.


Open Government• Mayor Mulvale, Members of Council and special guest,

former Winnipeg Mayor Glen Murray, were joined by over 100 local residents and business people at the Town’sinaugural Dialogue on Local Government to discuss thechallenges and opportunities facing the Town of Oakville.

• Public and stakeholder input was essential to the successfulreview of several major by-laws including Taxi Licensing,Sign, and Noise.

• Extensive public consultation for the Parks, Recreation,Culture and Library Master Plan included interviewing com-munity groups, meetings with advisory committees, as wellas surveys with residents, local organizations and youth.

• Council’s governance review project on Standing Committeesconcluded with the affirmation of the existing structure.Recommended ward boundary changes from the CitizenTask Force were referred to the 2006-2009 Council for further public consideration.

• The Town’s Council Chambers reno-vations includes improved sound andvisual systems, and provides for webstreaming of Council meetings.

• Ongoing governance review projectsinclude the Citizen Task Force review-ing Council financials, which willpresent its recommendations in 2006,and the Policy Review Task Force,which is continuing to review andupdate corporate policies. UponCouncil approval, all corporate policies and procedures are posted to the Town’s website.

Intergovernmental Advocacy• Council’s Ontario Municipal Board (OMB) Reform

Committee led municipal efforts to pressure the Ontariogovernment to reform the OMB. Bill 51, An Act to Amendthe Planning Act and Other Acts, was introduced in December2005 to give municipalities greater responsibility for plan-ning decisions in their communities.

• Oakville will receive more than $11.7 million in federal gas tax revenues over the next five years for infrastructurerenewal and $961,000 for public transit over the next twoyears as part of the “New Deal for Cities and Communities.”This new federal funding complements the $680 million inprovincial gas tax revenues that will be allocated to Ontariomunicipalities for public transit over the next three years.

• Mayor Mulvale continues as Co-Chair of the Ontario Mayorsfor Automotive Investments Group, which works with theFederal and Provincial Governments to find solutions to thechallenges facing the automotive industry. The Town contin-ues to value Ford Canada’s innovation, environmental

enhancements and its investment in itsOakville manufacturing plant, and theimpact it has on the local economy.

• Oakville is an active member of theGreater Toronto Area (GTA) – CleanAir Council which supports initiativesto improve our air quality.

• The Town is a committed participanton the Association of Municipalitiesof Ontario (AMO) Task Force onEnergy Conservation currentlyreviewing the Province’s Bill 21 –Energy Conservation Responsibility Act.

Did you know…• In 2005, for every $100 of taxes

collected, the Town’s portion was$32. The Region of Halton’s portion was $41, and the SchoolBoards’ portion was $27.

• The Town replaced approximately1,300 metres of curb and 1,600square metres of sidewalk.

• In 2005, Oakville’s DevelopmentServices and Building ServicesDepartments approved 23 develop-ment agreements, reviewed 25 subdivision engineering submissionsand 75 technical report submissions,processed approximately 740 pool/site alteration permits, issued 2871building permits and conducted45,800 inspections.

9

LookingKey Challenges and Actions

The development

and management

of parks, recreation

and cultural

facilities are

key priorities for

the residents of

Oakville.


Our Blueprint Oakville initiative asked the community to take an active rolein shaping the future of our community. The resulting Master Plans arepractical guidelines to help ensure the Town continues to gain the social

and economic benefits of growth, while at the same time managing it in such a way as to preserve the quality of life that citizens have come to expect. The imple-mentation of these Plans will take centre stage for the Town in 2006.

Growth ManagementIn keeping with the growth targets set by the Province, Oakville has planned for significant population and job growth over the next 20 to 30 years through itsOfficial Plan and the North Oakville Secondary Plan (NOSP). These Plans address the development that will take place in North Oakville as well as infill developmentin the existing areas of the Town. The Plans recognize the need to co-ordinate growthwith the delivery of public services and infrastructure.

ACTIONS 2006• The Preliminary Directions report outlining the key revisions to the Official Plan

will be completed. Issues to be addressed include growth management, infill andintensification, and policies for natural areas.

• Planning for North Oakville moved to the OMB in 2005 when North OakvilleManagement Inc. (NOMI) developed their own version of a secondary plan andappealed it to the Ontario Municipal Board. Hearings will begin in August 2006.

• Staff training in new urbanism will commence in anticipation of the processing of development applications in the North Oakville area following the outcome of the OMB hearing.

Full Community LifeThe development and management of parks, recreation and cultural facilities are key priorities for the residents of Oakville.

In 2005, the Town drafted a Parks, Recreation, Culture and Library (PRCL) Master Plan,which provides a strategic foundation for the future delivery of parks, recreation,library and cultural facilities and programs.

Research indicates that residents want Town facilities to be multi-use and multi-generational – including fitness, recreation, and sports activities, as well as havingdedicated space for youth and seniors. Oakville residents value arts and culture aswell as recreational team sports such as swimming and soccer.

ACTIONS 2006• The Glen Abbey Community Centre expansion project will

be completed including an expanded library and a secondice pad.

• The draft Parks, Recreation, Culture and Library MasterPlan will be provided to residents and Council.

• A functional design study for QE Park will determine therequirements necessary for the development of a new com-munity centre on the existing property as recommendedin the Parks, Recreation, Culture and Library Master Plan.

• A heritage site plan will be developed for Erchless Estate to ensure the buildings and surrounding property aremaintained and preserved in a manner that is consistentwith the estate’s historical origin (circa 1900).

Transportation ImprovementsThe Town is expected to grow to over 230,000 by 2021. TheTown’s Transportation Master Plan (TMP) will deliver a long-term strategy to effectively and effi-ciently accommodate this growth.

The TMP focuses on transit as a realisticalternative to the personal automobile bylooking at ways to improve current busservice, enhancing GO train service, andinvestigating Bus Rapid Transit (BRT).

The TMP creates new links in the trailsystem to make walking and cycling apotential alternative to vehicle use.

ACTIONS 2006• Transit will confirm its participation

in the GTA Farecard project. Scheduledfor implementation between 2007and 2010, the fare card will replacetickets and passes with a single high-tech fare system for all public transitagencies in the GTA, including GO Transit.

• Gas tax revenues from the provincial and federal governmentswill help reduce the funding gap needed to maintain theTown’s roads, bridges and other transportation infrastructure,as well as to make strides to improve transit service levels.

• The Cycleways Master Plan, which looks at cycling asviable travel option, will be updated.

Healthy EnvironmentCommitted to practicing and promoting environmental stew-ardship, the Town’s Environmental Strategic Plan (ESP) outlinesinitiatives to protect and improve Oakville’s environment. TheESP recognizes and aims to sustain and enhance our naturalresources, as well as educate and engage the community in protecting the environment.

ACTIONS 2006• The ESP Implementation Advisory Committee, a group of

citizen representatives, will act as champions of the ESP andsupport actions recommended within the plan.

• The Yellow Fish Road program willremind the community that materialsentering the storm drain affect localwater sources and aquatic life.

• Idle Free Zone signs will be providedto schools and other agencies toencourage drivers to turn off theirengines while parked.

• Public transit campaigns will belaunched in 2006 including the FreeYouth Summer Bus Pass for kids 14years of age and under.

• The Town’s Naturally Green programwill continue to encourage residentsand businesses to reduce their use ofpesticides. The Town supports residentssensitive to pesticides by sendingNaturally Green information to nearbyhomes and businesses.

Did you know…• Oakville offers an excellent environ-

ment for both new and expandingbusinesses. Over 300 companies havelocated either their national or inter-national headquarters in Oakville.

• Oakville’s population grew by 3,000people from 2004 to 2005. By 2021,it is expected to increase to approxi-mately 231,800.

• The Town of Oakville hosted the2005 Ontario Lifeguard Champion-ships at Iroquois Ridge CommunityCentre in July drawing over 200 lifeguards from across the province.

• The Oakville Centre for thePerforming Arts enjoyed record-breaking sales in 2005 with nearly$2 million in box office sales. That’sa 90 percent increase over 2004.

11

Ahead

The CAO/Town Manager’s Office ensures that Town services and programs are aligned with Council-approved policies and strategic directions.

The Community Services Commission is responsible for the management of Town-owned facilities, fire protection and prevention, emergency management and the delivery of recreation and cultural services. The commission also provides a corporate link to the Oakville Library, Oakville Galleries and TOWARF (Town ofOakville Water and Air Rescue Force).

The Corporate Services Commission provides support services to ensure fiscalresponsibility, records management, compliance with legislation and regulations,appropriate legal and real estate services and advice, council support, and informa-tion technology services, to support the Town’s operating departments.

The Planning and Development Commission is responsible for the delivery andcoordination of planning and building services, such as processing of developmentapplications, planning policy, site development review, building plans examination,permit issuance and related inspections for compliance.

The Infrastructure Services Commission manages programs and services related tothe Town’s infrastructure, including road and storm drainage, traffic control devicesand systems, parks, forestry, harbours and cemeteries. It is also responsible for theprovision of public transit.

* resigned December 2005

Organizational Chart

Oakville was

awarded the

Government

Finance Officers

Association (GFOA)

– Canadian Award

for Financial

Reporting (CanFR)

for the eighth

consecutive year.


DevelopmentServices

Engineering andConstruction

Transit Services

COUNCIL

CAO/TOWN MANAGERM. Joann Chechalk

Human Resources

Strategic Planning

Environmental Policy

Communications and

Public Relations

Audit and Risk Management

Community

ServicesDomenic Lunardo

Commissioner

Capital Assets and FacilitiesManagement

InformationTechnology

Fire Services

Recreation andCulture Services

Corporate

ServicesLinda Reed*

Commissioner

Planning and

DevelopmentDavid Cash

Commissioner

Infrastructure

ServicesRay Green

Commissioner

Clerk’s

Planning ServicesParks and

Open Spaces

Legal

Finance

Building Services Roads and Works

As of December 2005

13

Treasurer’s Report

T O W N O F O A K V I L L E A N N U A L R E P O R T 2 0 0 5

Iam pleased to present the Town of Oakville’s2005 Consolidated Financial Statements. Thestatements have been prepared in accordance

with local government accounting standardsestablished by the Public Sector AccountingBoard (“PSAB”) of the Canadian Institute ofChartered Accountants. The Town’s externalauditors, Deloitte & Touche LLP in accordancewith Canadian Generally Accepted AuditingStandards, have audited the statements and have expressed an unqualified opinion thatthese statements present fairly the financial position of the Town at December 31, 2005.

These financial statements include the consoli-dated statement of financial position, the relatedconsolidated statements of financial activitiesand changes in financial position. The notes to the Financial Statements provide supportinginformation and details of the reserves andreserve funds, operating fund and capital fundbalances for the 2005 fiscal year. The statementsindicate how the Town financed its activities,and confirm that resources obtained were usedin accordance with the Town’s approved operat-ing and capital budgets.

Consolidated Statement of Financial Position

The year 2005 resulted in an improved municipalposition ($171.5 million), largely due to anincrease of $7.1 million in the Town’s equity inOakville Hydro. Financial assets increased by $23.1 million ($307.3 million) over 2004 ($284.2million), primarily due to an increase in cashand short term investments as well as the Town’sinvestment in Oakville Hydro. Physical Assets,which represent the inventory on hand at year-end, increased slightly.

Net Assets determine to what extent the Corpora-tion can cover all its outstanding liabilities. For2005, the net assets total $171.5 million, anincrease of $6.8 million over 2004, indicating theTown is in a solid financial position at year-end.

At December 31, 2005, the Town’s liabilitiestotaled $137.0 million, an increase of $16.3 million over 2004 ($120.7 million). The increaseoccurred largely in Deferred Revenue – obligatoryreserve funds, which primarily represent Develop-ment Charge revenues received for infrastructurenot yet constructed.

The consolidated municipal position reports theyear-end surplus or deficit for all Town funds(Operating, Capital and Reserve), its local boardsand the Town’s equity in Oakville Hydro(Government Business Enterprise).

The Town’s Operating Fund surplus for 2005 was $500,000, which was carried forward to 2006,in accordance with Town policy. The BusinessImprovement Areas contributed $138,000 towardsthe final year-end surplus, and these funds will beused to finance a portion of their 2006 activities.

In 2005, the Region of Halton, on behalf of theTown, issued long-term debt totaling $3.6 million,which was offset by repayments of existing debtof $3.6 million. The Town’s annual debt repay-ments of 3.7% are well within Council’s policy oflimiting debt payments to 6.25% of operatingrevenues.

Overall, the accumulated fund balance, includ-ing Oakville Hydro, was $207.2 million, anincrease of $7.8 million over 2004.

Consolidated Statement

of Financial Activities

This statement presents the consolidated operatingresults the Town Oakville, and its local boards(Oakville Public Library, Oakville Galleries, andBusiness Improvements Areas). The statement alsoprovides a comparison of actual operating resultsto approved budgets.

For 2005, the net revenues (revenues less expendi-tures) amounted to $6.8 million including thechange in equity in Oakville Hydro. Net Revenuesis a key performance indicator because it measuresthe extent to which revenues raised during theperiod met or exceeded expenditures.

Revenues exceeded the budget expectation due tosupplementary taxation, investment income, andsenior orders of government grants.

Expenditures in the Operating Fund also exceededbudget expectations and 2004 levels, particularlyin General Government and TransportationServices. These increased expenditures were morethan offset by increased revenues.

Capital expenditures were less than anticipated,partly due to a delay in the initiation of someplanned capital works.

The statement also presents the change in the consolidated fund balances for 2005 – $7.8 million(2004 – $(3.1) million), with the most significantchange occurring in the Town’s equity inOakville Hydro.


Other 5%

Taxation 66%

Investment Income 6%

User Fees 23%

Operating Fund: Revenues

Protection 21%

Transportation 27%

Planning/Development 6%

General Government/Other 20%

Recreation & Culture 26%

Operating Fund: Expenditures

Taxation 20%

Developer Cont. 35%

Other 14%

OSEIFA Funding 9%

Reserves/Reserve Funds 22%

Capital Fund: Revenues

Recreation & Culture 40%

Transportation 40%

Protection 5%

General Government/Other 15%

Capital Fund: Expenditures

The Reserves and Reserve Funds balance of $39.0million is comprised of reserves totaling $28.0 mil-lion and reserve funds of $11.0 million. Councilhas set these monies aside to provide funding forfuture capital requirements, to offset annual oper-ating expenses, or to fund emergency situations.These funds also allow the Town the flexibility totake advantage of any Provincial /Federal/privateinitiatives, that in the long run enable us toimprove our infrastructure and/or service levelswhile avoiding significant tax rate increases.

Municipal Performance

Measures Program

Provincial guidelines mandate that performancemeasures be reported to the Province by May 31,2005 and to the public by August 31, 2005. TheTown will notify the public through the OakvilleBeaver and Oakville Today that the 2005 perform-ance measures can be viewed on Oakville’s web site.

Conclusion

The Town of Oakville is in a solid financial posi-tion, despite the significant pressure placed on its financial resources to provide new/enhancedinfrastructure and services, as well as the need tomaintain existing assets in a state of good repair.This has been achieved, while maintaining com-petitive tax rates and user fees, as well as a highdegree of citizen satisfaction. The Town continuesto lobby other levels of government to increaseour non-tax base revenues, such as a long-termcommitment to the sharing of the Federal andProvincial Gas Tax, and changes to the Develop-ment Charge Act. These long-term fundingsources are integral to our ability to maintain oursolid financial position and the services providedto the residents of Oakville. Combined with thefinancial policies and practices of the Town, thiswill ensure that Oakville taxpayers continue to be well served today and in the future.

I would like to thank all those who contributed to a successful year in 2005. Town Council,Commissioners, Department heads and staff in allTown Departments all contributed to the Town’sachievements. Special thanks to the staff of theFinance Department who continue to demonstratea high level of dedication and professionalism.

Sincerely,

Patricia Elliott-Spencer, MBA, CMADirector, Finance & TreasurerThe Corporation of the Town of OakvilleDated: June 5, 2006

15T O W N O F O A K V I L L E A N N U A L R E P O R T 2 0 0 5

0

5

10

15

20

25

30

2000 20052002 2003 2004

Millions Reserves Reserve Funds

19,62

9,000

9,416

,000

21,95

9,000

9,851

,000

24,81

6,000

8,471

,000

28,56

2,000

7,594

,000

27,96

0,000

11,05

1,000

Reserves and Reserve Funds

T R E A S U R E R ’ S R E P O R T

The management of the Corporation of theTown of Oakville is responsible for theintegrity, objectivity and accuracy of the

financial information presented in our FinancialStatements.

In order to meet its responsibility for presentingaccurate information, management maintainscomprehensive financial and internal control systems. These systems are designed to ensure the safeguarding of assets and the integrity of the financial data. The control systems provide an organizational structure, which effectively seg-regates responsibility, employs highly qualifiedprofessional staff, and develops corporate policiesand procedures, which are continuously reviewed.

Financial Management

The Town of Oakville prepares its financial infor-mation in accordance with the generally accept-ed accounting principles for local governmentsas recommended by the Public Sector AccountingBoard of the Canadian Institute of CharteredAccountants, and prescribed policies and require-ments as issued by the Ministry of MunicipalAffairs and Housing. The Town’s sources offinancing and expenditures are recorded usingthe accrual basis of accounting. This basis recognizes revenues as they become availableand measurable and expenditures as they areincurred and measurable as the result of receiptof goods or services and the creation of a legalobligation to pay. This is also the basis for devel-oping the Town’s budget.

In municipal financial operations, monies raisedor supplied for one purpose cannot be used forany other purpose. Legal restrictions and con-tractual agreements prevent it from being usedor diverted to any other use. Fund accountingshows that the money has been used for itsintended purpose. The funds used by the Townof Oakville are the Operating Fund, Capital Fund,Reserve Funds and Trust Funds.

Another element of financial management is toensure the financial stability of the Corporation. By looking forward and preparing for future needs,the Town is able to deal with legislative changes,the impact of growth, and changes in the economicclimate without significantly impacting the tax rate.

Financial Policies

The following financial policies establish theframework for the Town of Oakville’s overall fiscal planning and management. The success of the Town’s budget process rests on a solidfoundation of budget principles. These principlesmay be summarized as follows:

Sustainability

The annual budget incorporates a long-term perspective and should be affordable today andin the future. The Town’s budget shall be incompliance with the Municipal Act and thusmust be balanced and shall not plan for a deficit.The use of one-time revenues shall not be incor-porated into the Town’s base budget and revenuediversification should be maximized.

Interdependency

The operating and capital budgets must bereviewed with a coordinated effort. It must berecognized that capital expenditures, financingdecisions and strategies will impact on futureoperating budgets.

Affordability

The assumption of new assets and infrastructureand the replacement of existing assets will be wellplanned, and appropriate financing strategies andmeans will be utilized to minimize the financialimpact and ensure that the tax rate is maintainedat manageable levels. Growth related infrastructureis funded primarily through development chargesin accordance with the Development Charges Act.Funding for non-growth infrastructure is fundedthrough tax revenues. The Town prepares multi-year operating and 10 year capital forecasts toevaluate the Towns ability to afford new programs;service levels changes and new facilities.

Fee for Service

The Town will ensure that user fees will be utilizedto cover costs of appropriate services and are sub-ject to annual review.

Management Principles

The Town will maximize program efficiencieswhile maintaining program effectiveness. Theannual budget will focus on results and out-


Comprehensive Financial Management & Planning Policies

comes. The safeguarding of the Town’s assets andresources shall be a key management objective.Town management and staff review the numer-ous programs provided by all departments inorder to ensure community needs are being met.

Operating Budget Controls

The Town has adopted various policies that allowdepartments to effectively manage programs andservices for which they are accountable. Thesepolicies establish a hierarchy of authority foradjusting between budget appropriations. Thegeneral accountabilities and allowable adjustmentsare as follows:

• Departmental services approved by Council arecarried out within the department’s net expen-diture approvals, and that deviations from thispolicy are reported to and reviewed by theCAO/Town Manager or Council, as set outherein.

• Directors/Commissioners are accountable tothe Treasurer, the CAO/Town Manager andCouncil for their spending, revenue generationand service delivery performance against budget approvals.

• Revenues that are received beyond the levelprovided for in the budget shall not be spentor committed without Council approval. Atyear-end, such remaining revenues becomepart of the Town surplus.

• Reallocations between object codes that do not affect the net operating budget of a specificprogram may be made by a Director and willbe implemented on an expenditure basis only.

• The transfer of approved budgets of not morethan $50,000 in respect of each reallocationbetween programs within a department that donot affect the net operating budget for theDepartment shall require the approval of theCommissioner, if applicable, the Treasurer andthe CAO/Town Manager. Any such reallocationshall be reported as part of the quarterly vari-ance report. Reallocation of approved budgetsin excess of $50,000 requires Council approval.

• The transfer of approved budgets between pro-grams and/or services affecting the net operat-ing budget for a department shall require theapproval of the Treasurer and the ChiefAdministrative Officer prior to being made and the subsequent approval of Council.

Capital Budget Controls

The following points highlight the capital budgetcontrol process:

• Council, in adopting the Capital Budget, shalldetermine the sums required for each CapitalProject listed in the Capital Budget. TheTreasurer shall certify that funding for theCapital Projects in the Capital Budget is withinthe Town’s updated financial obligation limitin relation to allowable Provincial levels.

• All Capital Budgets and departmental reportsto Council seeking authority for the release offunds and commencement of the capital proj-ect or amendments to the capital programmust first be approved by the Treasurer toensure accuracy, financing sources and finan-cial impact, and then reviewed by the ChiefAdministrative Officer before being submittedto Council for approval.

• Any capital project approved in a previous yearfor which a cash flow forecast is not updated,as part of the current year’s capital budget submission that project will be deemed to becompleted. This review shall form part of theannual Capital Budget process, confirmation of the closure is subject to CAO approval.

• Similar to the operating budget, there is a hier-archy of controls detailing how project budgetsmay be amended.

Debt Management

Council has adopted a policy that ensures thedebt level is significantly below the allowableProvincial Government authorized level. TheCouncil approved guideline ensures debt pay-ments do not exceed 6.25% of revenues, thiscompares very favourably to the allowableProvincial limit of 25%. The Town has a relative-ly low total debt burden in comparison to theprovincial standard.

C O M P R E H E N S I V E F I N A N C I A L M A N A G E M E N T & P L A N N I N G P O L I C I E S



Auditors’ Report

To the Members of Council, Inhabitants and Ratepayers ofThe Corporation of the Town of Oakville

We have audited the consolidated statement of financial position of TheCorporation of the Town of Oakville as at December 31, 2005 and theconsolidated statements of financial activities and changes in financialposition for the year then ended. These financial statements are theresponsibility of the Town’s management. Our responsibility is to expressan opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally acceptedauditing standards. Those standards require that we plan and perform anaudit to obtain reasonable assurance whether the financial statements arefree of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating theoverall financial statement presentation.

In our opinion, these consolidated financial statements present fairly, inall material respects, the financial position of the Town as at December31, 2005 and the results of its operations and changes in its financial position for the year then ended in accordance with Canadian generallyaccepted accounting principles.

Chartered Accountants

Toronto, OntarioJune 5, 2006

Consolidated Financial StatementsDecember 31, 2005

Consolidated Statement of Financial PositionDecember 31, 2005

F I N A N C I A L A S S E T S ( in thousands) 2 0 0 5 2 0 0 4*

Cash and short-term investments (Note 3) $125,144 $106,324Taxes receivable (Note 4(a)) 15,212 14,552 Accounts receivable 8,496 11,429 Investment in Oakville Hydro Corporation (Note 5) 158,463 151,905

307,315 284,210

L I A B I L I T I E S ( in thousands)Accounts payable and accrued liabilities (Note 6) 16,416 16,022Other current liabilities 10,552 6,771Post employment benefit liability (Note 7(a)) 10,792 9,819WSIB liability (Note 7(b)) 1,359 1,202 Deferred revenue – obligatory reserve funds (Note 8) 59,132 49,999Deferred revenue (Note 9) 14,758 12,869Long-term liabilities (Note 10) 23,965 24,009

136,974 120,691 NET FINANCIAL ASSETS 170,341 163,519NON-FINANCIAL ASSETS – Prepaid expenses and inventory 1,190 1,175NET ASSETS $171,531 $164,694

M U N I C I P A L P O S I T I O N ( in thousands)

FUND BALANCES (Note 12)

Operating Fund – Schedule 1 $638 $638Capital Fund – Schedule 2 6,847 9,039Reserves and Reserve Funds – Schedule 3 39,011 36,156Equity in Oakville Hydro Corporation (Note 5 (c)) 160,702 153,617

207,198 199,450 AMOUNTS TO BE RECOVERED (Note 11) 35,667 34,754 MUNICIPAL POSITION $171,531 $164,696

C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S


*Restated – Note 5 (d)

Consolidated Statement of Financial ActivitiesDecember 31, 2005

2 0 0 5 2 0 0 5 2 0 0 4*R E V E N U E S ( in thousands) Budget Actual Actual

(Note 18)

Taxation – all classes (Note 1(a)(iii)) $294,550 $302,586 $289,008Less amounts received for Region and School Boards (Note 2) 208,714 213,862 205,252

85,836 88,724 83,756 Oakville Hydro – interest on promissory notes and leases 5,200 5,392 6,091User fees and charges (Note 13) 29,752 31,468 29,525Grants

Government of Canada 271 266 316Province of Ontario 2,959 4,210 2,091

Investment income 2,894 3,680 2,925Penalties and interest 2,230 2,585 2,167Developer contributions and development charges earned 17,205 15,353 15,360Other 1,125 5,210 4,117 TOTAL REVENUES 147,472 156,888 146,348

E X P E N D I T U R E S ( in thousands) (Note 17)

OPERATINGGeneral government 17,486 20,744 17,098 Protection to persons and property 23,938 23,973 21,969 Transportation services 27,575 30,649 27,767 Environmental services 548 588 466 Health services 687 841 755 Social and family services 58 39 47 Recreation and cultural services 28,394 28,836 26,313 Planning and development 6,587 6,846 5,389

105,273 112,516 99,804

CAPITALGeneral government 7,905 4,435 4,148 Protection to persons and property 2,902 2,432 3,267 Transportation services 24,411 18,049 22,463 Environmental services 735 1,011 1,089 Health services 45 130 61 Recreation and cultural services 11,249 17,629 9,716 Planning and development 2,018 949 4,102

49,265 44,635 44,846

TOTAL EXPENDITURES 154,538 157,151 144,650 CHANGE IN EQUITY – OAKVILLE HYDRO CORPORATION (Note 5(c)) – 7,085 (9,870) NET REVENUES (EXPENDITURES) (7,066) 6,822 (8,172)ADD

Proceeds from long-term debt 4,008 3,584 7,725Increase in post employment benefits and WSIB liabilities – 1,130 7

LESSDebt principal repayments (6,004) (3,629) (2,642)Repayment of internal loans (243) (172) (169)

INCREASE (DECREASE) IN AMOUNTS TO BE RECOVERED (2,239) 913 4,921INCREASE IN NON-FINANCIAL ASSETS – 15 112CHANGE IN FUND BALANCES $(9,305) $7,750 $(3,139)





Consolidated Statement of Changes in Financial PositionDecember 31, 2005

NET INFLOW (OUTFLOW) OF CASH AND SHORT-TERM INVESTMENTS

RELATED TO THE FOLLOWING ACTIVITIES ( in thousands)2 0 0 5 2 0 0 4*

OPERATINGNet revenues (expenditures) $6,822 $(8,172)Change in equity in Oakville Hydro Corporation 7,085 (9,870)

$(263) $1,698

Uses:Increase in taxes receivable (660) –Increase in accounts receivable – (5,584)Decrease in deferred revenue – (13)

(660) (5,597)

Sources:Decrease in taxes receivable – 2,868Decrease in accounts receivable 2,933 –Increase in accounts payable and accrued liabilities 394 1,625 Increase in other current liabilities 3,780 972 Increase in post employment benefit liability 973 512 Increase in WSIB liability 157 195 Increase in deferred revenue – obligatory reserve funds 9,133 5,242 Increase in deferred revenue 1,889 –

$19,259 $11,414 Net increase in cash from operations 18,336 7,515

INVESTINGDecrease in direct financing lease receivable from Oakville Hydro Corporation 529 502 FINANCINGProceeds from long-term debt 3,584 7,725 Debt principal repayment (3,629) (2,642)

(45) 5,083 NET CHANGE IN CASH AND SHORT-TERM INVESTMENTS 18,820 13,100 CASH AND SHORT-TERM INVESTMENTS, BEGINNING OF YEAR 106,324 93,224 CASH AND SHORT-TERM INVESTMENTS, END OF YEAR $125,144 $106,324


Notes to the Consolidated Financial Statements


1. Significant Accounting Policies

The consolidated financial statements of the Corporation of the Town of Oakville (the “Town”) are the representations of management prepared in accordance with local government accountingstandards established by the Public Sector Accounting Board (“PSAB”) of the Canadian Institute ofChartered Accountants.Significant accounting policies adopted include:

(a) (i) Reporting entityThese consolidated financial statements reflect the assets, liabilities, revenues, expenditures and fund balances of the reporting entity. The reporting entity is comprised of all organizations,local boards and committees of Council which are controlled by the Town (except for theOakville Hydro Corporation), including the following:• The Oakville Public Library Board• Downtown Oakville Business Improvement Area• Bronte Business Improvement Area• Oakville GalleriesAll material inter-entity transactions and balances, except for those between the Town and theOakville Hydro Corporation, are eliminated on consolidation.

(ii) Investment in Oakville Hydro CorporationThe Town’s investment in Oakville Hydro Corporation is accounted for on a modified equitybasis, consistent with generally accepted accounting principles as recommended by PSAB forinvestments in government business enterprises. Under the modified equity basis, OakvilleHydro Corporation’s accounting policies are not adjusted to conform with those of the munici-pality and inter-organizational transactions and balances are not eliminated. The Town recog-nizes its equity interest in the annual income or loss of Oakville Hydro Corporation in its con-solidated statement of financial activities with a corresponding increase or decrease in its invest-ment asset account. Any dividends that the Town may receive from Oakville Hydro Corporationwill be reflected as reductions in the investment asset account.

(iii) Accounting for region and school board transactionsThe taxation, other revenues, expenditures, assets and liabilities with respect to the operationsof the school boards and the Region of Halton are not reflected in the municipal fund balancesof these financial statements.

(iv) Trust fundsTrust funds and their related operations administered by the municipality are not consolidated,but are reported separately in the Trust Funds Statement of Financial Position and FinancialActivities.

(b)Basis of accounting(i) Revenues and expenditures

Revenues and expenditures are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues, as they are earned and measurable; expenditures are recog-nized, as they are incurred and measurable as a result of the receipt of goods or services and the creation of a legal obligation to pay.

(ii) Tangible capital assetsTangible capital asset expenditures incurred during the year are recorded as capital expendituresin the statement of financial activities.

(iii) Accounting for Property Tax Phase-in and Bill 140 Capping Provisions resulting from theOntario Fair Assessment SystemThe net impact in property taxes as a result of the application of phase-in and capping provisionsdoes not affect the consolidated statement of financial activities as the full amount of the propertytaxes is levied.



1. Significant Accounting Policies (continued)

(iv) Deferred revenue – obligatory reserve fundsDeferred revenue – obligatory reserve funds represents development charge contributions, paymentsin lieu of parkland and parking, and gas tax, levied under the authority of provincial legislation andTown by-laws. These amounts have been collected but the related services have yet to be performed.These amounts will be recognized as revenue in the fiscal year the services are performed.

(v) Deferred revenueDeferred revenue represents user charges and other fees, which have been collected, for whichthe related services have yet to be performed. These amounts will be recognized as revenue inthe fiscal year the services are performed.

(vi) Net investment in direct financing leases receivableInvestment income related to the municipality’s net investment in direct financing leases is recognized in a manner that produces a constant rate of return on the investment. The invest-ment in the leases is composed of net minimum remaining lease payments and unearnedinvestment income.

(vii) Post employment benefitsThe present value of the cost of providing employees with future benefits programs is recognized as employees earn these entitlements through service.

(viii) Government transfersGovernment transfers are recognized in the financial statements in the period in which theevents giving rise to the transfer occur, eligibility criteria are met, and reasonable estimates of the amount can be made.

(ix) Use of estimatesThe preparation of financial statements in conformity with Canadian generally acceptedaccounting principles requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Due to the inherent uncertainty in making estimates, actual results could differ from those estimates.

2. Operations of School Boards and The Region of HaltonFurther to Note 1(a)(iii), the taxation and other revenues of the school boards and the Region ofHalton are comprised of the following:

2 0 0 5 2 0 0 5 2 0 0 5 2 0 0 4School Boards Region Total Total

Taxation and user charges $104,051 $108,189 $212,240 $203,704Grants-in-lieu 195 1,427 1,622 1,548TOTAL $104,246 $109,616 $213,862 $205,252

3. Cash and Short-term Investments

This represents a consolidation of cash and short-term investments from the operating fund, local boards and the reserve funds (including those funds set aside in respect of deferred revenue – obligatory reserve funds as detailed in Note 8). The composition is as follows:

2005 2005 2005 2004 2004 2004Cash Short-term Total Cash Short-term Total

Investments Investments

Operating Fund $3,671 $67,919 $71,590 $4,735 $64,024 $68,759Reserve Funds 11,692 41,862 53,554 9,831 27,734 37,565TOTAL $15,363 $109,781 $125,144 $14,566 $91,758 $106,324Investments, which are reported at cost, have a market value of $110,366,358 (2004 – $94,451,669)at the end of the year.

4. Receivables

(a) Taxes receivable 2 0 0 5 2 0 0 4

Current year $11,054 $10,164Arrears previous years 5,228 5,416

16,282 15,580Less allowance 1,070 1,028

$15,212 $14,552The allowance of $1,069,630 has been established to cover the Town’s share of vacancy rebates for2005 and potential adjustments from unresolved assessment appeals.

(b) Interfund receivablesAs a means of funding the acquisition of computer hardware and software, funds are borrowed by theOperating Fund from Reserve Funds. These funds are secured by a promissory note and repaid over apredetermined period of time. The financing arrangements and ultimate repayment are approved byCouncil through the current budget process. For the purposes of these financial statements, both thefinancing and repayment are reflected as interfund transfers and therefore eliminated during consolida-tion. The following is the current status of all such loans outstanding:

2 0 0 5 2 0 0 4

Financing of computer software, hardware and equipment, repayable in semi-annual principal and interest payments of $149,408; bearing interest at 4.0% and maturing on December 31, 2005 – $290

5. Investment in Oakville Hydro Corporation

In recognition of the requirements of Bill 35 (the Energy Competition Act, 1998) the Town ofOakville on January 24, 2000 passed a transfer by-law that transferred, at fair value, all of the assetsand liabilities of the Oakville Hydro-Electric Commission, effective February 1, 2000, to four newlycreated corporations owned by the Town of Oakville. These four corporations, Oakville HydroCorporation and its wholly-owned subsidiaries, Oakville Hydro Electricity Distribution Inc., OakvilleHydro Energy Services Inc., and Oakville Hydro Communications Inc., have carried on the formerbusinesses of the Commission with all its rights, duties, obligations and responsibilities from thedate of transfer. The Town of Oakville is the sole shareholder of Oakville Hydro Corporation.Oakville Hydro Corporation is wholly-owned and controlled by the Town of Oakville and as a government business enterprise is accounted for on the modified equity basis in these financialstatements. Oakville Hydro serves as the electrical distribution utility for Oakville’s residents. Otheractivities of Oakville Hydro, and its subsidiaries, are to provide fibre optic services, energy services,water heater rental, billing services, meter services and street lighting services.






5. Investment in Oakville Hydro Corporation (continued)

The following table provides condensed supplementary consolidated financial information for theCorporation and its subsidiaries for the year ended December 31:

F I N A N C I A L P O S I T I O N 2 0 0 5 2 0 0 4*

ASSETSCurrent $80,845 $76,076Capital 99,992 95,696Other 19,469 18,924TOTAL ASSETS $200,306 $190,696LIABILITIESCurrent $32,504 $26,797Capital lease obligations to Town of Oakville 11,618 12,147Promissory notes payable to Town of Oakville 77,029 77,029Other 9,339 11,994TOTAL LIABILITIES $130,490 $127,967EQUITYShare capital 63,024 63,024Retained earnings 6,792 (295)TOTAL EQUITY $69,816 $62,729TOTAL LIABILITIES AND EQUITY $200,306 $190,696

F I N A N C I A L A C T I V I T I E S 2 0 0 5 2 0 0 4*

Revenue $165,175 $147,201Expenses (including/net of income tax expense/recovery) 158,088 143,928CHANGE IN RETAINED EARNINGS 7,087 3,273Adjustment to shareholder’s equity Restatement (Note 5 (d)) – (13,143)CHANGE IN EQUITY $7,087 ($9,870)TOWN OF OAKVILLE’S INVESTMENT REPRESENTED BY:• Direct financing leases receivable (Note 5 (a)) $11,618 $12,147• Promissory notes receivable (Note 5 (b)) 77,029 77,029• Investment in shares of the Corporation 63,024 63,024• Accumulated net income and adjustment for future income taxes 6,792 (295)TOTAL INVESTMENT $158,463 $151,905

(a) Net investment in direct financing receivableThe Town has provided direct financing leases to Oakville Hydro Corporation for the propertyknown municipality as 861 Redwood Square, and a vehicle fleet.Minimum payments under the leases commenced in 2001 and are as follows for the years ending:2006 $1,3532007 1,3252008 1,3192009 1,2402010 1,1522011-2019 12,057

18,446Less amount representing interest, imputed at 7% 6,828

$11,618

5. Investment in Oakville Hydro Corporation (continued)

(b) Promissory notes receivableOakville Hydro Corporation issued promissory notes to the Town of Oakville, effective February 1,2000, with principal repayment due on February 1, 2020. Interest is payable at various rates from 0%to 7% during the initial two year term of the notes and 6.45% to 7% throughout the balance of theterm of the notes. Interest revenue earned from these notes totalled $5,392,038 (2004 – $5,222,172).

(c) Equity in Oakville Hydro Corporation 2 0 0 5 2 0 0 4

BALANCE, BEGINNING OF YEAR $153,617 $163,487Changes during the year:• Net income for the year 7,085 3,273 • Restatement of opening balance (Note 5 (d)) – (13,143)

7,085 (9,870)BALANCE, END OF YEAR $160,702 $153,617

(d) Restatement of Prior Year’s FiguresThe financial statements of Oakville Hydro Corporation have been restated to record capital assetsthat were transferred from the Corporation of the Town of Oakville on February 1, 2000 back to theoriginal carrying value of the predecessor Commission. The effect of the restatement is as follows:

INCREASE/(DECREASE): 2 0 0 4

Capital assets $(16,813)Other assets (Future income taxes) 4,888Net income (1,218)RETAINED EARNINGS, BEGINNING OF YEAR $(13,143)

(e) Related party transactions and balancesThe following summarizes the Town’s related party transactions and balances with Oakville HydroCorporation for the year ended December 31, 2005.

T R A N S A C T I O N S 2 0 0 5 2 0 0 4

REVENUEInterest on capital leases $833 $870 Cashier services 4 4 Tree trimming services 189 193 Garage services 466 511 Property taxes 311 310 Donation of property 715 – Interest on promissory notes 5,392 5,222 EXPENSESEnergy purchases (at commercial rates) $2,715 $2,933Fibre optic rental 60 56 Streetlight maintenance 397 436

B A L A N C E SAMOUNTS DUE FROM OAKVILLE HYDRO CORPORATION• Accounts receivable $128 $150• Direct financing leases receivables 11,618 12,147• Promissory note receivable 77,029 77,029 AMOUNTS DUE TO OAKVILLE HYDRO CORPORATION• Accounts payable and accrued liability $692 $278




6. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities include financial obligations to outside organizations andindividuals as a result of transactions and events on or before the end of the accounting period.They are the result of invoices, contracts, agreements and legislation in force at the end of theaccounting period that require the Town of Oakville to pay for goods and services acquired or provided on or before the accounting date. A breakdown is provided below:

2 0 0 5 2 0 0 4

Trade accounts payable $10,796 $11,757Payables to other governments 2,828 2,524Payroll liabilities 1,281 1,570 Accrued liabilities 1,511 171

$16,416 $16,022

7. Post Employment Benefit Liability

(a) Post employment benefit liability

Employee future benefits are comprised of health and dental benefits, as well as an accrual for one dayearned per year of service payable at retirement. Dependent on eligibility, health and dental coveragemay be a shared financial responsibility between the Town and the retired employee. All coverage ceasesat age 65. The Town recognizes these post-retirement costs as they are earned during the employee’stenure of service.

The post employment benefits obligation at December 31, 2005 and the changes in the accrued benefit obligation for the 2005 fiscal year was determined by an actuarial valuation prepared as atDecember 31, 2005.

The main actuarial assumptions employed in the valuation are as follows:

(i) Inflation Inflation was assumed to be 2.4% per year.

(ii) Discount rate The present value as at December 31, 2005 of the future benefitsobligation was determined using a discount rate of 5.25%.

(iii)Health and dental trend costs Health care trend costs are presumed to increase at 10% in 2006,reducing linearly to 3.5% in 2015. Dental care trend costs of3.5% annual increases are presumed.

Mortality based on 1983 Group Annuity Mortality Table

Information about the Town’s benefit liabilities is as follows:2 0 0 5 2 0 0 4

ACCRUED BENEFITS LIABILITY, BEGINNING OF YEAR $9,819 $9,307 Current service costs 464 387Prior period service costs – Plan amendment 197 (181)Interest on accrued benefits 614 581Amortization of actuarial (gain) losses (12) (12)Benefits paid during the period (290) (263)ACCRUED BENEFITS LIABILITY, END OF YEAR $10,792 $9,819Post employment benefits obligation $11,014 $9,622Unamortized actuarial (losses) gains (222) 197 POST EMPLOYMENT BENEFITS LIABILITY $10,792 $9,819

7. Post Employment Benefit Liability (continued)

(b)Workplace Safety and Insurance Obligations (WSIB)

Effective January 1, 1994, the Corporation of the Town of Oakville became a Schedule II employerunder the Workplace Safety & Insurance Act and follows a policy of self insurance for all its employees.An actuarial valuation was completed in 2005.

The Town had maintained an insurance policy, which protected the Corporation against singleclaims in excess of $500,000, but that policy was not renewed beyond its expiry date in 2005.

Information about the Town’s WSIB liability is as follows:2 0 0 5 2 0 0 4

ACCRUED WSIB LIABILITY, BEGINNING OF YEAR $1,202 $1,007Expense for the year 416 456Benefits paid during the year (259) (261)ACCRUED WSIB LIABILITY, END OF YEAR $1,359 $1,202

Accrued WSIB obligation $1,417 $1,471Unamortized actuarial losses (58) (269)ACCRUED WSIB LIABILITY, END OF YEAR $1,359 $1,202Management has provided the most current information available to the actuary for purposes ofestimating the WSIB liability.

8. Deferred Revenue – Obligatory Reserve Funds

Continuity of deferred revenue – obligatory reserve funds is as follows:

2005 2005 2005 2005 2005 2004Development Charges Parkland GasTax Parking Total Total

BALANCE, BEGINNING OF YEAR $40,685 $6,917 $273 $2,124 $49,999 $44,757Developer and other contributions 18,355 2,048 2,230 7 22,640 18,839Interest earned 811 278 18 100 1,207 1,065Parking – – – 235 235 199

19,166 2,326 2,248 342 24,082 20,103 Less: Developer contributions used in capital operations 14,770 179 – – 14,949 14,861 BALANCE, END OF YEAR $45,081 $9,064 $2,521 $2,466 $59,132 $49,999

9. Deferred Revenue

2005 2004

Deferred revenues – operations $4,486 $3,083Deferred revenues – capital 3,807 3,884Pre-authorized tax payments 6,440 5,887Deferred revenues – Library and Business Improvement Areas 25 15

$14,758 $12,869




10. Long-term Liabilities

(a) The balance of the long-term liabilities reported on the consolidated statement of financial position is comprised of the following:

2005 2004

The municipality has assumed responsibility for the payment of the principal and interest charges on certain long-term liabilities issued by Halton Region on behalf of the Town. Interest rates range from 4.05% to 8.75%. $14,094 $16,284The municipality has assumed responsibility for the payment of the principal and interest charges on certain long-term liabilities issued by Halton Regionon behalf of the Town, under the Ontario Strategic Infrastructure Financing Authority (OSEIFA). Interest is at 2.43%. 9,871 7,725LONG-TERM LIABILITIES AT THE END OF THE YEAR $23,965 $24,009

Principal repayments due over the next five years and thereafter are as follows:

2006 $3,3842007 3,1952008 3,3382009 3,4892010 3,269Thereafter 7,290

$23,965

(b) The long-term liabilities in (a) issued in the name of the municipality have received approval ofthe Ontario Municipal Board (or approval by private legislation) for those approved on or beforeDecember 31, 1992. Those approved on or after January 1, 1993 have been approved by by-law.The annual principal and interest payments required to service these liabilities are within theannual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing.

(c) Interest expense on long-term liabilities amounted to $1,159,654 (2004 – $1,073,157).

11. Amounts to be recovered

Amounts to be recovered will be funded as follows:2005 2004

FROM FUTURE REVENUE:• Long-term liabilities (Note 10(a)) $23,965 $24,009• Internal loan from obligatory reserve fund bearing interest at 3%

and maturing on December 31, 2006 250 424• Post employment benefits and WSIB liability 6,419 5,539FROM RESERVE FUNDS:Post employment benefits and WSIB liability 5,033 4,560FROM INSURANCE PROCEEDS RELATING TO WSIB LIABILITY – 222

$35,667 $34,754

12. Municipal Fund Balances at the end of the year

(a) Operating fund balance2005 2004

REDUCTION IN GENERAL AREA TAXATIONTown $500 $500Business improvement areas 138 138

$638 $668

(b) Capital fund balance2005 2004

ACQUISITION OF TANGIBLE CAPITAL ASSETS TO BE:Recovered through reserves and reserve funds $(2,055) $(6,567)Financed from the proceeds of long-term liabilities (1,582) (1,739)Financed from third party recoveries and savings in other projects (17,718) (6,430)Funds available for the acquisition of tangible capital assets 28,202 23,775

$6,847 $9,039

(c) Reserves and reserve funds2005 2004

RESERVES SET ASIDE FOR SPECIFIC PURPOSES BY COUNCIL FOR:Building maintenance reserve $ – $1,557Tax rate stabilization 2,236 2,150Capital financing 8,109 8,670Acquisition of tangible capital assets 8,732 6,827Recreation and culture 379 303 Working capital 8,070 8,621Insurance 434 434

$27,960 $28,562

RESERVE FUNDS SET ASIDE FOR SPECIFIC PURPOSES BY COUNCIL FOR:Post employment benefits and WSIB liability 5,033 4,560Street trees 1,541 1,061Lot levies and subdivider contributions – 26Conservation purposes 229 224 Harbours 430 166Other 6 3Library Development 130 89Building maintenance and replacement 3,682 1,465

11,051 7,594$39,011 $36,156

The Operating Fund surplus for the Town of Oakville for the fiscal year ended December 31, 2005,available to be used to offset taxation or user fees in 2005, has been reduced by an amount of$1,274,932 (2004 – $4,389,334) which was transferred to the Reserves and Reserve Funds as author-ized by Corporate Policy. Had this transfer not been made, the balance “reduction in general area taxation” for the Town in Note 12(a) would have shown a surplus of $1,774,932 (2004 – $4,889,334).




13. User Fees and Charges

User fees and charges includes the following:2005 2004

Development fees and miscellaneous $3,833 $4,685Other municipalities 3,498 2,222Transit revenues 4,378 3,692Parking, Provincial Offences Act and other fines 3,173 3,274Town facilities rental and usage fees 5,233 3,508Recreation and cultural program revenues 4,940 5,383 Cemetery plot and burial revenues 719 577 Licenses and permits 5,694 6,184

$31,468 $29,525

14. Trust Funds

Trust funds administered by the municipality amounting to $2,721,131 (2004 – $2,649,647) arenot included in the Consolidated Statement of Financial Position nor have their operations beenincluded in the Consolidated Statement of Financial Activities.

In addition, the Community Foundation of Oakville holds certain funds on behalf of the Town of Oakville.

15. Pension Agreements

The municipality makes contributions to Ontario Municipal Employees Retirement Fund (OMERS),a multi-employer plan, which as of December 31, 2005 was on behalf of 953 members of its staff.The amount contributed to OMERS for 2005 was $3,547,360 (2004 – $3,137,471). The plan is adefined benefit plan, which specifies the amount of the retirement benefit to be received by theemployees based on the length of service and rates of pay.

16. Contingent Liabilities and Guarantees

(a) Loan guarantees

The Town of Oakville has one loan guarantee outstanding at the end of 2005, as follows:

December 31Original 2005

Burloak Canoe Club $75,000 $41,500Safeguards have been put in place to protect the Town should default occur on the part of the club.

(b) Oakville Hydro Corporation

A class action claiming $500 million in restitutionary payments plus interest was served onNovember 18, 1998. The action was initiated against Toronto Hydro Electric Commission as therepresentative of the Defendant Class consisting of all municipal electric utilities in Ontario, whichhave charged late payment charges on overdue utility bills at any time after April 1, 1981. Theclaim is that payment penalties result in the municipal electric utilities receiving interest at effec-tive rates in excess of that permitted under Section 347(1)(b) of the Criminal Code.

The Electricity Distributors Association (formerly the Municipal Electric Association) is undertakingthe defence of this class action. At this time it not possible to determine the effect, if any, on thefinancial position of Oakville Hydro Corporation, and therefore on that of the Town of Oakville. For this reason, no recognition of any potential liability has been given in these financial statements.

16. Contingent Liabilities and Guarantees (continued)

(c) Litigation

(i) The development community has filed appeals to the Ontario Municipal Board (OMB) regard-ing the North Oakville Secondary Plan. The Town is currently defending its position and anyrelated costs incurred up to December 31, 2005 are reflected in these financial statements. Thebalance of the costs associated with the OMB hearing will be reflected in subsequent years’financial statements, when incurred.

(ii) The Town received the Ontario Municipal Board decision regarding the Pitblado expropriationhearing and related costs have been recorded in the current year. The Town is awaiting a deci-sion with regard to legal costs. The outcome with respect to legal costs and other actions is notdeterminable as at the date of reporting and accordingly, no provision has been made in thesefinancial statements for any liability which may result.

(iii) The Town has been named as defendant in certain legal actions in which damages have beensought. The outcome of these actions is not determinable as at the date of reporting andaccordingly, no provision has been made in these financial statements for any liability whichmay result.

(d) Cemeteries Act

The Cemeteries Act (Revised), R.S.O., 1990, requires the Town to assume ownership and responsi-bility for the continuing care of pioneer and abandoned cemeteries. However, the Cemeteries Actdoes not address the issue of funding for this obligation, other than provide that any assets, fundsand trust accounts, if they exist, become the property of the municipality at the time the owner-ship is assumed. This potential liability cannot be quantified at this time and no provision hasbeen included in these financial statements.

(e) Guarantees

In the normal course of business, the Town enters into agreements that meet the definition of a guarantee.

(i) The Town, on occasion, has provided indemnities under lease agreements for the use of variousoperating facilities. Under the terms of these agreements the Town agrees to indemnify thecounterparties for various items including, but not limited to, all liabilities, loss, suits, anddamages arising during, on or after the term of the agreement. The maximum amount of anypotential future payment cannot be reasonably estimated.

(ii) The Town has purchased errors and omissions insurance to mitigate the costs of any potentialfuture suits or actions. The term of the indemnification is not explicitly defined, but is limitedto the period over which the indemnified party served as a trustee, director or officer of theTown. The maximum amount of any potential future payment cannot be reasonably estimated.

(iii) In the normal course of business, the Town, on occasion, has entered into agreements thatinclude indemnities in favour of third parties, such as purchase and sale agreements, confiden-tiality agreements, engagement letters with advisors and consultants, outsourcing agreements,leasing contracts, information technology agreements and service agreements. These indem-nification agreements may require the Town to compensate counterparties for losses incurred by the counterparties as a result of breaches in representation and regulations or as a result of litigation claims or statutory sanctions that may be suffered by the counterparty as a conse-quence of the transaction. The terms of these indemnities are not explicitly defined and themaximum amount of any potential reimbursement cannot be reasonably estimated.

The nature of these indemnification agreements prevents the Town from making a reasonable estimate of the maximum exposure due to the difficulties in assessing the amount of liability whichstems from the unpredictability of future events and the unlimited coverage offered to counterparties.Historically, the Town has not made any significant payments under such or similar indemnificationagreements and therefore no amount has been accrued in the statement of financial position withrespect to these agreements.




17. Classification of Expenditures by Object

The Consolidated Statement of Financial Activities presents the expenditures by function; the following classifies those same expenditures by object:

2005 2004

Salaries, wages and employee benefits $73,098 $66,985Operating materials and supplies 13,340 12,000 Contracted services 22,859 17,595 Rent and financial expenses 409 626External transfers to others 1,650 1,525Tangible capital assets 44,635 44,846Debt service 1,160 1,073TOTAL EXPENDITURES BY OBJECT $157,151 $144,650

18. Budget Figures

The approved operating and capital budgets for 2005 are reflected on the Consolidated Schedule of Operating Fund Financial Activities and Fund Balance, Consolidated Schedule of Capital FundFinancial Activities, Fund Balance and the Consolidated Statement of Financial Activities. Thebudgets established for the capital fund operations are on a project-oriented basis, the costs ofwhich may be carried out over one or more years and therefore, may not be comparable with thecurrent year actual amounts. As well, the municipality does not have a budget for activity withinReserves and Reserve Funds, with the exception being those transactions, which flow througheither the operating or capital budgets. Budget figures have been reclassified for the purposes of these financial statements to comply with PSAB reporting principles.

19. Comparative Figures

Certain of the prior year’s comparative figures have been restated as disclosed in note 5 (d) orreclassified to conform to the current year’s presentation.

Consolidated Schedule of Operating Fund Financial Activities and Fund Balance – Schedule 1December 31, 2005

R E V E N U E S 2 0 0 5 2 0 0 5 2 0 0 4( in thousands) Budget Actual ActualTaxation – all classes $294,550 $302,586 $289,008 Less amounts received for Region and School Boards 208,714 213,862 205,252 NET TAXATION FOR MUNICIPAL PURPOSES 85,836 88,724 83,756 Oakville Hydro – interest on promissory notes and leases 5,200 5,392 6,091 User fees and charges 29,752 31,361 29,380 Grants:

Government of Canada 271 266 316 Province of Ontario 1,784 3,269 778

Transfer from trust funds 97 200 193 Sale of publications 25 107 145 Investment income 2,894 3,234 2,567 Penalties and interest 2,230 2,585 2,167 TOTAL REVENUES 128,089 135,138 125,393

E X P E N D I T U R E S( in thousands)General government 17,486 20,744 17,098 Protection to persons and property 23,938 23,973 21,969 Transportation services 27,575 30,649 27,767 Environmental services 548 588 466 Health services 687 841 755 Social and family services 58 39 47 Recreation and cultural services 28,394 28,836 26,313 Planning and development 6,587 6,846 5,389 TOTAL EXPENDITURES 105,273 112,516 99,804 NET REVENUES $22,816 $22,622 $25,589

F I N A N C I N G A N D T R A N S F E R S( in thousands)Debt principal repayments (6,004) (3,629) (2,642)Repayment of internal loans (243) (174) (169)Increase in non-financial assets – 15 112 Increase in post employment benefit and WSIB liabilities – 1,130 7 Transfers to Reserves and Reserve Funds (9,597) (11,381) (13,703)Transfer to Capital Fund (7,472) (8,583) (9,244)NET FINANCING AND TRANSFERS (23,316) (22,622) (25,639)CHANGE IN OPERATING FUND BALANCE (500) – (50)FUND BALANCE, BEGINNING OF YEAR 500 638 688 FUND BALANCE, END OF YEAR $ – $638 $638




Consolidated Schedule of Capital Fund FinancialActivities and Fund Balance – Schedule 2December 31, 2005

R E V E N U E S 2 0 0 5 2 0 0 5 2 0 0 4( in thousands) Budget Actual ActualProvincial Grants $1,175 $941 $1,313 Developer charges earned 17,205 14,818 15,000 Upper tier recoveries – 2,523 3,078 Other revenue and recoveries 1,003 2,487 846 TOTAL REVENUES 19,383 20,769 20,237

E X P E N D I T U R E S( in thousands)General government 7,905 4,435 4,148 Protection to persons and property 2,902 2,432 3,267 Transportation services 24,410 18,049 22,463 Environmental services 735 1,011 1,089 Health services 45 130 61 Recreation and cultural services 11,249 17,629 9,716 Planning and development 2,018 949 4,102 TOTAL EXPENDITURES 49,264 44,635 44,846 NET EXPENDITURES (29,881) (23,866) (24,609)

F I N A N C I N G A N D T R A N S F E R S( in thousands)Proceeds on long-term debt 4,008 3,584 7,725 Transfer from Operating Fund 7,472 8,583 9,244 Transfer from Reserve and Reserve Funds 18,401 9,507 11,552 NET FINANCING AND TRANSFERS 29,881 21,674 28,521 CHANGE IN CAPITAL FUND BALANCE – (2,192) 3,912 CAPITAL FUND BALANCE, BEGINNING OF YEAR – 9,039 5,127 CAPITAL FUND BALANCE, END OF YEAR $ – $6,847 $9,039

Consolidated Schedule of Reserves and Reserve FundsFinancial Activities and Fund Balance – Schedule 3December 31, 2005

R E V E N U E S 2 0 0 5 2 0 0 5 2 0 0 4( in thousands) Budget Actual Actual

Developer contributions $ – $ 535 $360 Investment income – 446 358 TOTAL REVENUES – 981 718

N E T T R A N S F E R S ( T O ) F R O M O T H E R F U N D SCapital Fund (18,401) (9,507) (11,552)Operating Fund 9,597 11,381 13,703

8,804 1,874 2,151 CHANGE IN RESERVES AND RESERVE FUND BALANCES 8,804 2,855 2,869 RESERVES AND RESERVE FUNDS, BEGINNING OF YEAR 36,156 33,287 RESERVES AND RESERVE FUNDS, END OF YEAR $(8,804) $39,011 $36,156



D E M O G R A P H I C S( in thousands)

2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1

Population at the end of the year (Est.) 158,700 155,700 152,400 148,200 146,300Number of Households 58,734 57,328 55,226 53,336 51,408Staff Complement – Approved 864 855 817 785 773Continuous Full-time (includes Library)Oakville’s Area in km2 143 143 143 143 143Roads Network• Kilometres 643 634 671 655 640• Lane Kilometres 1,661 1,626 1,705 1,665 1,660 Parkland in Acres 3,315 3,297 3,265 3,220 3,168 Building Permits – Issued• New residential units 1,638 1,713 1,976 1,958 1,308 • Total residential construction value $348 M $374 M $393 M $374 M $221 M• Total construction value – all types $387 M $544 M $635 M $574 M $440 M

of permits

T A X A B L E A S S E S S M E N T( in thousands)

2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1

Residential, multi-residential and farm 18,224,859 17,475,233 14,530,815 12,556,343 12,100,785Commercial – all classes 2,077,921 2,005,103 1,807,251 1,581,394 1,507,305Industrial – all classes 860,526 817,717 739,454 695,624 711,593Pipeline & Managed Forests 73,844 73,640 75,087 43,350 44,948

21,237,150 20,371,693 17,152,607 14,876,711 14,364,631 Commercial and industrial as 13.84% 13.86% 14.85% 15.31% 15.45% a percentage of taxable assessmentExempt Assessment 1,285,908 1,241,368 1,091,639 1,076,961 1,034,532

P R O P E R T Y T A X B I L L I N G S( in thousands)

2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1

Town of Oakville 87,218 82,379 71,808 65,911 59,607 Region of Halton 109,394 103,569 95,467 90,308 87,003 School Boards (Public & Separate) 106,139 102,893 98,527 96,113 95,164

302,751 288,841 265,802 252,332 241,774

Five Year Review (Unaudited)

P R O P E R T Y T A X A T I O NT A X R A T E S ( % ) 2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1

RESIDENTIALTown of Oakville 0.351490 0.340556 0.351898 0.375161 0.347545Region of Halton 0.445593 0.432787 0.474426 0.521513 0.512222School Boards (Public and Separate) 0.296000 0.296000 0.335000 0.373000 0.373000

1.093083 1.069343 1.161324 1.269674 1.232767

MULTI-RESIDENTIALTown of Oakville 0.795035 0.770304 0.795958 0.848578 0.786112Region of Halton 1.007886 0.978922 1.073105 1.179610 1.158594School Boards (Public and Separate) 0.296000 0.296000 0.335000 0.373000 0.373000

2.098921 2.045226 2.204063 2.401188 2.317706

COMMERCIAL – FULL RATETown of Oakville 0.511945 0.496020 0.512539 0.546423 0.506199Region of Halton 0.649007 0.630354 0.691002 0.759584 0.746051School Boards (Public and Separate) 1.528601 1.528601 1.623239 1.832099 1.832099

2.689553 2.654975 2.826780 3.138106 3.084349

COMMERCIAL – VACANT UNITS, EXCESS LANDPercentage of Full Rate 70% 70% 70% 70% 70%

INDUSTRIAL – FULL RATETown of Oakville 0.829482 0.803678 0.830444 0.885343 0.354339Region of Halton 1.051555 1.021334 1.119598 1.230718 0.522236School Boards (Public and Separate) 2.118413 2.118413 2.314354 2.803141 1.282469

3.999450 3.943425 4.264396 4.919202 2.159044

INDUSTRIAL – VACANT UNITS, EXCESS LANDPercentage of Full Rate 65% 65% 65% 65% 65%

FARMLAND AWAITING DEVELOPMENTTown of Oakville 0.000000 0.000000 0.000000 0.000000 0.121641Region of Halton 0.000000 0.000000 0.000000 0.000000 0.179278School Boards (Public and Separate) 0.000000 0.000000 0.000000 0.000000 0.130550

0.000000 0.000000 0.000000 0.000000 0.431469

PIPELINETown of Oakville 0.373177 0.361568 0.373610 0.398309 0.368988Region of Halton 0.473086 0.459490 0.503698 0.553691 0.543825School Boards (Public and Separate) 1.412687 1.412687 1.385005 1.459365 1.4593650

2.258950 2.233745 2.262313 2.411365 2.372178

FARMLAND OR MANAGED FORESTTown of Oakville 0.087873 0.085139 0.087974 0.093790 0.086886Region of Halton 0.111398 0.108196 0.118606 0.130378 0.128056School Boards (Public and Separate) 0.074000 0.074000 0.083750 0.093250 0.093250

0.273271 0.267335 0.290330 0.317418 0.308192


F I V E Y E A R R E V I E W ( U N A U D I T E D )


R E V E N U E F U N D O P E R A T I O N S ( in thousands)

2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1

EXPENDITURES BY FUNCTIONGeneral Government 20,744 17,098 14,434 12,387 11,058Protection to Persons & Property 23,973 21,969 21,244 19,350 18,649Transportation Services 30,649 27,767 26,786 21,932 21,192Environmental Services 588 466 569 672 445Health Services 841 755 642 645 556Social and Family Services 39 47 42 5 5Recreation and Cultural Services 28,836 26,313 25,222 23,234 20,658Planning and Development 6,846 5,389 4,657 4,208 4,088Financing Repayments & Transfers 22,622 25,639 20,319 22,073 15,494

135,138 125,443 113,915 104,506 92,145 EXPENDITURES BY OBJECT

Salaries, Wages & Employee Benefits 73,098 66,978 61,490 56,990 52,628Materials, Services & Financial Expenses 37,768 31,301 30,687 24,087 22,267Transfers to Others 1,650 1,525 1,419 1,356 1,756Debt Principal Repayment &

Own Fund Transfers 22,622 25,639 20,319 22,073 15,494135,138 125,443 113,915 104,506 92,145

Reference: Consolidated Statement of Financial Activities & Note 17 for 2005

REVENUES BY SOURCETaxation (includes Supplementary

& Payments in Lieu) 88,724 83,756 72,968 66,812 60,999 Province of Ontario – Grants/Subsidies 3,269 778 692 685 658 Other Grants – i.e. Canada 266 316 336 305 394 Oakville Hydro Interest on Promissory

Notes & Leases 5,392 6,091 4,891 3,994 1,534Fees and Service Charges 31,361 29,380 29,579 27,792 23,777 Other Revenue 6,126 5,072 5,551 4,862 4,888

135,138 125,393 114,017 104,450 92,250 Accumulated Net Revenue (Surplus)at the end of the year 638 638 688 586 642Reference: Schedule of Operating Fund Financial Activities

C A P I T A L O P E R A T I O N S( in thousands)

2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1

EXPENDITURES BY FUNCTIONGeneral Government 4,435 4,148 2,863 4,218 13,570Protection to Persons & Property 2,432 3,267 2,702 1,697 909Transportation Services 18,049 22,463 26,897 10,408 34,127Environmental Services 1,011 1,089 262 42 5Health Services 130 61 6 14 3Recreation and Cultural Services 17,629 9,716 9,834 7,619 18,925Planning and Development 949 4,102 4,337 1,878 1,014

44,635 44,846 46,901 25,876 68,553 FINANCING BY SOURCETransfers from Own Funds 18,090 20,796 18,122 18,943 20,155Long-term Debt/Internal Borrowing 3,584 7,725 710 3,371 11,266Grants/Subsidies –- Federal/Provincial 941 1,313 453 562 408Other 19,828 18,924 18,274 8,560 28,994

42,443 48,758 37,559 31,436 60,823 Reference: Schedule of Capital Fund Financial Activities

D I S C R E T I O N A R Y R E S E R V E S & R E S E R V E F U N D S

A N D O B L I G A T O R Y R E S E R V E F U N D S( in thousands)

2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1

Discretionary Reserves 27,960 28,562 24,816 21,959 19,629Discretionary Reserve Funds 11,051 7,594 8,471 9,851 9,416Obligatory Reserve Funds*• Development Charges 45,081 40,685 37,765 32,024 18,214• Parkland 9,064 6,917 5,038 3,503 2,598• Gas Tax 2,521 273 • Parking 2,466 2,124 1,954 1,675 1,755TOTAL – RESERVES & RESERVE FUNDS 98,143 86,155 78,044 69,012 51,612 * Reported on the Consolidated Statement of Financial Position as “Deferred Revenue” in compliance with PSAB reporting requirements

N E T L O N G T E R M D E B T

NET LONG-TERM LIABILITIESTown of Oakville Purposes 23,965 24,009 18,926 21,567 20,746Per Capita $151.01 $154.20 $124.19 $145.53 $141.61Percentage of taxable assessment 0.11% 0.12% 0.11% 0.14% 0.14%ANNUAL CHARGES FOR NET LONG-TERM LIABILITIES – PRINCIPAL & INTERESTTown of Oakville Purposes 4,962 3,704 3,957 3,851 3,223Annual Repayment Limit prescribed by Province 23,820 22,014 20,851 18,193 17,874As a Percentage of Revenue Fund Expend. 3.7% 3.0% 3.5% 3.7% 3.5%Per Capita $31.27 $23.79 $25.97 $25.98 $22.00Percentage of taxable assessment 0.023366% 0.018183% 0.023071% 0.025882% 0.022437%


P R I N C I P A L C O R P O R A T E T A X P AY E R S

• Ford Motor Company• Cambridge Leaseholds – Oakville Place

Shopping Mall• Petro-Canada• Silgold Developments Inc.• Oakville Entertainment Holdings Inc.

• 2725321 Canada Inc. – Town Centre I Shopping Plaza• Sun Life Assurance Company of Canada –

Town Centre II Shopping Plaza• Capreit Apartments Inc.• Urban Core Road Builder• Goodrich Aerospace Canada Ltd.

The Corporation of the Town of Oakville1225 Trafalgar Road, P.O. Box 310

Oakville, Ontario L6J 5A6Phone: 905-845-6601

www.oakville.ca

Documents

Oakville Annual Report 2005