District of Lake Country
Notes to Financial Statements
For the year ended December 31, 2015
2. Significant accounting policies (continued)
Liability for contaminated sites
Contaminated sites are a result of contamination being introduced into air, soil, water or sediment
of a chemical, organic or radioactive material or live organism that exceeds an environmental
standard. The liability is recorded net of any expected recoveries. A liability for remediation of
contaminated sites is recognized when all of the following criteria are met:
•
•
•
•
•
an environmental standard exists;
contamination exceeds the environmental standard;
the District is directly responsible and accepts responsibility;
it is expected that the future economic benefits will be given up; and
a reasonable estimate of the amount can be made.
The liability includes all costs directly attributable to remediation activities including post
remediation operations, maintenance and monitoring.
Municipal Finance Authority debt reserve deposits
The District issues its debt instruments through the Municipal Finance Authority. As a condition of
these borrowings, a portion of the debenture proceeds is withheld by the Municipal Finance
Authority as a debt reserve fund. The District also executes demand notes in connection with each
debenture whereby the District may be required to loan certain amounts to the Municipal Finance
Authority. These demand notes are contingent in nature, and are detailed as follows:
General Fund
Water Fund
Sewer Fund
$
$
Demand
Cash
Total
Total
Notes
Deposits
2015
2014
224,705
104,385
316,340
645,430
$
$
100,961
37,376
177,761
316,098
$
$
325,666
141,761
494,101
961,528
$
$
241,444
140,827
489,664
871,935
Reserve funds
Non-statutory reserves represent an appropriation of surplus for specific purposes. Reserves for
future capital expenditures represent funds to finance incomplete capital projects. Statutory
reserves are restricted by the Community Charter and the associated municipal bylaws that
established the reserves.
Budget figures
The budget figures are from the 5-Year Financial Plan Bylaw, adopted before May 15th of each year.
Subsequent amendments have been made by Council to reflect changes in the budget as required
by law. The financial plan is prepared on a cash basis for revenue and expenses. For comparative
purposes, the District has prepared a reconciliation of the budget figures to the financial statements
in the following table:
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2015 Annual Report
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