The estimated groundwatervelocity during Springconditions is calculated to be

approximately 1 m/day and the correspondingtime for groundwaterto travel from

the site to the Grand River is approximately80 days. As the easterly groundwater
flow conditions are estimated to last for a period of less than one month (
days), it is not expected that the extent of the contaminants of concem in
groundwater will reach the river during these relativelybrief conditions.
The results of Grand River surface water analysisconducted on samplescollected
during easterly groundwater flow conditions showed no significant change in
surface water quality upstream, adjacent to, or downstream of the Grand Avenue
site. This indicates that groundwater is not having a measurable negative impact
on Grand River water quality near the Grand Avenue site.
Vapour Migration to the Adjacent Buildingg

Bedrock Vapour Sampling

Bedrock vapour monitors (VMI to VM5) were installed off-site adjacent to

buildings on Grand Avenue and St. Andrews
Street, north and east of the former
gasoline service station. Vapour samples were collected on seven occasions
between April 2005 and June 2006 to assess the potential for migration of VOCs
and PHCs to air from groundwater.

The concentrations of toluene, ethylbenzene,and xylenes were below the indoor

air screeninglevels in the bedrock vapour samplessubmitted for analysis.

The concentration of benzene was above the indoor air þÿ nþÿ

o a c t i olevel
n of 3.2
g/ms
|.1 in several of the bedrock vapour samplesin April, June and August 2005.
The concentration of benzene was below the þÿ nþÿ
o a c t i olevel
n or not detected in
VMI to VM5 in three subsequentsamplingevents in November 2005, April 2006
and June 2006.

One or bedrock
more vapour samples collected from VM4 and VM5 had
measured detections of TCE and/or vinyl chloride above their þÿ nþÿ
o a c t i oindoor
n
air screeninglevel values on one or more occasions.

Indoor Air Sampling Results

Indoor air samples were collected from the basement and/or
crawlspacesof six
adjacent buildings occasions, November 2005, April 2006 and June
on three
2006. A follow-up samplewas collected from the basement of 42 Grand Avenue
in October 2006.

The concentration of BTEX and Pl-ICs in indoor samples were below the
screening criteria in the samples collected from 6, 8, 10 and 14 St. Andrews Street
and Bamacle þÿ B i l Restaurant
l s (49 Grand Avenue).
The concentration of benzene in four samplescollected from the basement of 42
Grand Avenue rangedbetween 4 and 14 pg/ms, above the þÿ naction"
o level of 3.2
ug/ma, but below the level at which ventilation is recommended (32 pg/ma).42
Grand Avenue is the only building sampledthat has an attached garage. Vehicle
emissions enterin the buildin ma be contributin or be the source of benzene.
Cztyof Cambrulge Page iv
SupplementalPhase Il En vironrncntal Site Assessment March 2008
Grand Avenue and St. Andrews Street Site Dillon Consulting Limited
I

I
from 14 St. þÿ A n d r e Street,
w s the west side
The indoor air samplescollected near

I of the Grand Avenue site were also submitted for analysisof TCE. TCE was
below the þÿ n þÿ
o actiolevel
n of 2.3 pg/m3 in three of the four samplessubmitted
for analysis. The analytical result for the June 2006 contained 9.7 ug/m3.
|l Significant concentrations of BTEX and PHCs were not detected in the ambient

(outdoor) air samplescollected adjacentto the residences on St. Andrews Street

or on the Grand Avenue site. All outdoor air values were below the screening
I level criteria.

I LNAPL Monitoring

A thinlayer of Light Non-Aqueous Phase Liquid (LNAPL), determined to be

separate-phasegasoline, was measured on the water table in monitoring well
I MW9 located near the northeast corner of the former gasolineservice station.

The thickness in MW9 has been measured to range between 4.9

of the LNAPL
well. The source of the LANPL was determined
I cm and not being present in the
to be a previously unknown UST that was removed from the site on August 12,
2006.

I Three additional bedrock monitoring

lateral
wells (MWIS, MW19
of the LNAPL.
and MW20) were

installed to further assess the extent Separate-phase

gasoline was not measured in wells MW18
MW20 during the monitoring
or

I period. A thin
occasions (trace
film
-

possibly 1 mm).
gasoline
of separate-phase was detected in MW 19 on two

The results of the separate-phasegasoline monitoring suggest that the lateral

extent of the LNAPL is limited to a small radius (maximum of 6 metres) around
MW9 and that the LNAPL has not migrated laterally very far from the vertical
dischargepoint (former UST).
The LNAPL thickness present in MW9 is sensitive
relatively small changesin
to
the water table elevation. Over the monitoring period, the LNAPL thickness in
I MW9 observed to vary on
was a monthly, weekly and even daily basis, where
in the moming but not present in the well in the
LNAPL may be detected in MW9
u afternoon due to the daily vertical water table oscillations.

A petroleumproduct recovery device (passiveskimmer) was installed in MW9 in

October 2006. Over a four month period the skimmer recovered just under 0.1
litres of fuel. The poor recover rate is expected to be caused by the relatively
small volume of LNAPL present in the well (typically 2-5 mm) and the oscillating
I 1
|
groundwater conditions which cause the LNAPL to become trapped below the
I water table and therefore inaccessible for periods of time.

I3
l` 1

Cily of Cambridge Pggg v

SupplementalPhase II Environmental Siu Assessment March 2008
Grand Avenue and St. Andrews Street Site Dillon Consulting Limited
 E
s
f
<

i
1
The following conclusions are made based the results of the
I
on
SupplementalPhase ll
ESA: »

l l. The long and short-term

monitoring of groundwater levels in the existing and
additional monitoring wells installed on and off-site has resolved the
uncertainty
surroundingthe groundwaterflow patterns that have been observed. The results
confirm the observed seasonal reversal in groundwater flow direction and the
l influence of the MSWF and the Grand River on the shallow water table.
i
4 2. The seasonal monitoring of groundwater
quality in the in the existing wells, and
additional monitoring wells installed on and off-site
during this Supplemental
Phase II ESA, indicates that the lateral extent of groundwater
impactedby PHCs
and BTEX below the fomter gasoline station, and off-site to the north and
east, is
in a quasi-steadystate. Although the leading
edgeof the area (as defined by the
Table 2 Standard for benzene) is observed to shift with seasonallyin changes
groundwater flow direction, the overall radial extent of the
plume is not observed
or expectedto increase or decrease in size.

3. Groundwater samples collected over several seasons from the additional

monitoring wells installed at the west end of the Grand Avenue site, below and
around the area where soil containing TCE above Table 2 Standards was
removed, met the MOE Table 2 potable groundwater Standards for VOCs. The
seasonal monitoring results indicate that concentrations of TCE in shallow
groundwater approach the Table 2 Standard in the Spring but are likely to be
below the Table l Standards for the
majority of the year.
4. The results of the groundwater suggest that there is no significant
assessment
potential for the site to the MSWF groundwater
impact to quality. Although the
I hydrogeologicassessment indicates that there is a likely vertical connection
I
between the water table and the
l deepRegional aquifer of the MSWF in this area
of Cambridge,the analytical results of
|
samplescollected from a deepmonitoring
i well installed at the site, screened at a similar elevation to
zone of the MSWF wells, mel the MOE Table 2
the upper production
groundwater Standards for
a
l VOCs, metals and PHCs. The low potential for impact to the MSWF is further
I
supportedby the small contribution of groundwater below the site to the overall
MSWF capture zone, and the expected natural attenuation
processes (e.g.,
dispersion, chemical processes) that are expected to occur between the
lower aquifers,and between the site and the
upper and
Regional
wells.
5. The results of the
r
hydrogeologicassessment and the groundwater and surface
I water samplingthat were conducted do not indicate that groundwater is, or has the
l

I potential for negative impact to the Grand River surface water

f
the following:
quality based on
i
P The inferred
a
4
groundwater flow direction is away from the Grand River for

'a >
themajority of the year (loosingstream conditions);
Under easterly flow conditions, the estimated travel time
to reach
for groundwater
the Grand River from the site is estimated to be 80
days and the

'i City vf Cambnvize

Pagevt
SupplementalPhase II Environmental Site Assessment

li Grand Avenue and Sl. Andrews Street Site

Mmh 2003
Dillon ConsultingLimued

1
nl
 Springreversal is estimated to be occur for a periodof less than one month
(days).
days).
> The results of surface water analysis conducted on samples collected
during easterly groundwater flow conditions showed no significant change
in river surface water quality upstream, adjacentto, or downstream of the
Grand Avenue site.

The results of bedrock vapour and indoor air samplescollected off-site has
reduced the degree of uncertainty associated with the
potential risk for vapour
migration to the buildings near the former gasoline service station. The seasonal
monitoring of indoor air did not identify concentrations of BTEX or PHCs above
the indoor air screening criteria with the
exception of benzene in samples of
basement indoor air at 42 Grand Avenue. 42 Grand Avenue is the
only building
sampled that has an attached garage. Vehicle emissions enteringthe building may
be contributing or be the sotu°ce of benzene. Further
monitoring of this location
for benzene is recommended.

The LNAPL monitoringsuggests that the lateral extent

of separate-phase gasoline
is limited toapproximate 6 metre radius around monitoring well MW9, and
an

within the network of stnroundingwells (MW 18, MW 19,

MWZO). The spill of
gasolineis suspectedto be old (decades)and therefore the maximum lateral extent
of product migration is expected to have been reached. There is little or no
practical means to recover LNAPL due to the small volume present in the ground
and the small thickness of separate-phase
product (typically millimetres) in well
MW9 locatedat the centre of the LNAPL area. The LNAPL also becomes
periodically inaccessible (trappedbelow the water table) due to the groundwater
fluctuations that occur further limiting the ability for a
practical recovery solution.

Cltv vf Cambridge
Pagevii
SupplementalPhase II Environmental Site Assessment
Mmh 2003
Grand Avenue and St. Andrews Street Size Dillon ConsultingLimited
-9. CONCLUSIONS _

The following conclusions are made based on the results of the SupplementalPhase II
ESA:

l. The long and short-term monitoring of groundwaterlevels in the existing and

additional monitoring wells installed on and off-site has resolved the uncertainty
surrounding the groundwater flow patterns that have been observed. The results
confirm the observed seasonal reversal in groundwater flow direction and the
influence of the MSWF and the Grand River on the shallow water table.

2. The seasonal monitoring of groundwaterquality in the in the existing wells, and

additional monitoring wells installed on and off-site during this Supplemental
Phase II ESA, indicates that the lateral extent of groundwaterimpactedby PHCs
and BTEX below the former gasolinestation, and off-site to the north and east, is
in a quasi-steadystate. Although the leading edgeof the area (as defined by the
Table 2 Standard for benzene) is observed to shift seasonallywith changesin
groundwaterflow direction, the overall radial extent of the plume is not observed
or expectedto increase or decrease in size.

3. Groundwater samples collected over several seasons from the additional

monitoring wells installed at the west end of the Grand Avenue site, below and
around the area soil containing TCE above Table 2 Standards was
where
removed, rnet Table 2 potable groundwaterStandards for VOCs. The
the MOE
seasonal monitoring results indicate that concentrations of TCE in shallow
groundwater approach the Table 2 Standard in the Spring but are likely to be
below the Table l Standards for the majority of the year.

4. The results of the groundwater assessment suggest that there is no significant

potential for the site to impact to the MSWF groundwater quality. Although the
hydrogeologic assessment indicates that there is a likely vertical connection
between the water table and the deepRegional aquifer of the MSWF in this area
of Cambridge, the analytical results of samplescollected from a deepmonitoring
well installed at the site, screened at a similar elevation to the upper production
zone of the MSWF wells, met the MOE Table 2 groundwater Standards for
VOCs, metals and PHCs. The low potential for impact to the MSWF is further
supportedby the small contribution of groundwater below the site to the overall
MSWF capture zone, and the expected natural attenuation processes (e.g.,
dispersion, chemical processes)that are expectedto occur between the upper and
lower aquifers, and between the site and the Regional wells.

5. The results of the hydrogeologic assessment and the groundwater and surface
water samplingthat were conducted do not indicate that groundwateris, or has the
potential for negative impact to the Grand River surface water quality based on
the following:

> The inferred groundwaterflow direction is away from the Grand River for
the majority of the year(loosing stream conditions);

Corporation of the City of Cambridge Page 49

SupplementalPhase II Environmental Site Assessment March 2008
Grand Avenue and St. Andrews Street Site Dillon Consulting Limited
 > Under easterly flow conditions,the estimated travel time for
groundwater
to reach the Grand River from the site is estimated to be 80 days and the
Spring reversal is estimated to be occur for a period of less than one
4'
month
(days).4'
days).
> The results of surface analysis conducted on samples collected
water

during easterly groundwater flow conditions showed no significant change

in river surface water quality upstream, adjacent to, or downstream of the
Grand Avenue site.

The results of bedrock

vapour and indoor air samples collected off-site has
reduced the of
degree uncertainty associated with the potential risk for vapour
migration the buildings near the former gasoline service station. The seasonal
to

monitoring of indoor air did not identify concentrations of BTEX or PHCs above
the indoor air screening criteria with the of benzene in
exception of samples
basement indoor air at 42 Grand Avenue. 42 Grand Avenue is the only building
sampledthat has an attached garage. Vehicle emissions enteringthe building may
be contributing or be the source of benzene. Further
monitoringof this location
for benzene is recommended.

The LNAPL monitoring suggests that the lateral extent

of separate-phase
gasoline
is limited to an approximate 6 metre radius around
monitoring well MW9, and
within the network of surrounding wells (MW18, MWl9, MW20). The spill of
gasoline is suspectedto be old (decades)and therefore the maximum lateral extent
of product migration is expected to have been reached. There is little or no
practical means to recover LNAPL due to the small volume present in the
ground
and the small thickness of separate-phase product (typically millimetres) in well
MW9 located at the centre of the LNAPL area, The LNAPL also becomes
periodicallyinaccessible (trapped below the water table) due to the groundwater
fluctuations that occur further limiting the ability for a
practical recovery solution.

Corporationofthe City of Cambridge Page 50

SupplementalPhase II Environmental Site Assessment Marg); 2003
Grand Avenue and St. Andrews Street Site Dillon ConsultingLimited
 10. RECOMENDATIONS

It is recommended that a program be developed to continue the

and the off-site environmental issues associated with
monitoringof LNAPL
benzene around the former gasoline
service station. It is expected that a
monitoring program will be become part of the Risk
Managementplan for the site, which will be submitted with the future Transition Risk
Assessment. The monitoring program is
expectedto include the followingcomponents:
-
Additional monitoring for
benzene in indoor air at 42 Grand Avenue where
concentrations have been measured above the þÿ n oaction"
screening level
including further assessment of the potential for contributions of benzene
to
indoor air at 42 Grand Avenue from other
sources (e.g. vehicle emissions from
the attached garage).
»
Collection of additional samplesof indoor air at14 St. þÿ A n d r e Street
w s where one
of four sampleswas above the þÿ nþÿ oaction level
screening for TCE.
~
A seasonal groundwater samplingprogram to monitor off-site concentrations of
benzene to the north
(MWIO) and east (MW6 and MW7).
»
Periodic monitoringfor LNAPL in MW9, MW 18, MW 19 and MW20.
It is noted that collection of bedrock
vapour sampleson-site has not been conducted as
the intended use of the
property is for a parking lot. There are no
buildingsat the site and
migrationto indoor air on-site is not currently a concem.

Corporation of the Ctty of Cambridge

Supplemental Phase II Environmental Site Assessment P45 51
Grand Avenue and St. Andrews Street Site Margh 2008
Dillon ConsultingLimited
 CambridgeCity Council Minutes 6
Monday, May 28, 200?

Mr. Brian Butcher, Chair of the Cambridge Chamber of Commerce, re: Item no. 10,
þÿ F i n a n cthe
i n Drayton
g f o r Theatre Proposal".Speaking of the Cambridge on behalf
Chamber of Commerce Board of Directors Mr. Butcher expressed his
support of the
staff recommendation. He discussed the difficulty in trying to convince
everyone of the
importance of this project and the significanceof it to the growth and fulfillment of the
artistic movement in Cambridge. Mr. Butcher urged council to
pursue negotiations
with Drayton Entertainment.

NOTICE OF MOTION

#133 Dragon Theatre

Moved by Mayor Craig Seconded by Councillor Tucci

The City of Cambridge supports the proposal by Drayton
Entertainment to construct
Theatre and Production Facility in
a

c-1 Cambridge and agrees þÿ principle"

in to contribute up to 6 million
gl dollars towards the project. The City wishes to enter into an
:1
_< 5 agreement with Drayton Entertainment, regarding the project,
2 detailing such matters as the location, ownership, operations and
Q' '
2 use
Council
of the proposed facilities. Staff are requested to report back to
C1
Q on this matter as soon as possible.

3
li =
'"
CARRIED ON A RECORDED voTE 6 TO 1

g
'

ln Favour: Councillors Cowsill, Kiefer, Price, Tucci, Wolf and Mayor

5 2 Craig
ru

E", "'
Oggosed: Councillor Whetham

COPORATE SERVICES DEPARTMENT

#134 Financing for the Dragon Theatre Progosal

Moved by Councillor Kiefer Seconded by Councillor Price

igg THAT Council approve the

financingfor the DraytonTheatre
proposal of up to $6,000,000and amend the approved
budget
§ ef
_ §§
as: s
as per report Corpserv/07-50.

§§§§ cA|=tn|ED on A necoaneo vorE s ro 2

E ln Favour: Councillors Kiefer, Price, Tucci, Wolf and

Mayor
Craig
E .

Opposed: Councillors Cowsill and Whetham

}
City of Cambridge
5
'

Council Minutes
Monday, August 10, 2009

AND WHEREAS the role of learning in þÿ O n t a r ifuture

o s will
need to respond to a new social, technological and
economic environment;

AND WHEREAS municipalities are incurring the majority of

costs associated withdelivering library programming;

AND WHEREAS those same municipalities bear the majority

ofthe costs to build and maintain library facilities;

AND WHEREAS the province has decreased its annual

grants since 1985 from 15% of annual revenue to 4% of
annual revenue which continues to threaten the future of
these engines of cultural and economic development;

NOW THEREFORE BE IT RESOLVED THAT the Council of

the Corporation of the City of Cambridge petitions that the
Province increase its annual grants to 15% of library revenue
on a province-wide basis;

AND FURTHER THAT a copy ofthe motion be fon/varded to

the Premier of Ontario, the Honourable Aileen Carroll,
Minister of Culture, MPP Randy Hillier, the Ontario Library
Sen/ices and the Association of Municipalities of Ontario for
circulation.

CARRIED

COMMITTEE OF THE WHOLE

NEW BUSINESS -
STAFF REPORTS

OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER

#188 New Performing Arts Complex (Dragon Partnership)

Moved by Councillor Wolf Seconded by Councillor Price

THAT Council formally endorse the proposed

home of the new Performing Arts Complex at
lands municipally known as 46 Grand Avenue
South in Cambridge.
 City of Cambridge
Council Minutes 5

Monday, August 10, 2009

AND THAT Council approve the Terms of

'~
Reference guiding the partnership between the.
City of Cambridge and Drayton Entertainment, as
outlined in Appendix þÿ Aof Report CAO 2009-R39.

CARRIED ON A RECORDED VOTE: 5 TO 2

In Favour: Councillors Kiefer, Price, Tucci, Wolf and Mayor Craig

Opposed: Councillors Cowsill and Whetham

COMMUNITY SERVICES DEPARTMENT

#189 Cambridge Arts and Culture Advisory Committee of Council

New Member Appointment

Moved by Councillor Wolf Seconded by Councillor Whetham

THAT Cambridge City Council appoint Bill Ashwell

representing the Cultural Awards Committee to the
Cambridge Arts and Culture Advisory Committee of
Council for the term ending December 31, 2010.

CARRIED

#190 Boardwalk Construction Over Moffat Creek in Greengate

Subdivision Addition to Contract #2009-08 þÿ M o f Creek
fat
Sanitagf Sewer þÿ C o n s t r u c t i o n

Moved by Councillor Cowsill Seconded by Councillor Price

THAT Council expenditure of $86,400 for the

approve an
construction of Moffat Creek and adjacent
a boardwalk
over

wetlands in the Greengate Subdivision east of Dundas Street,

as an addition to Contract #2009-08 þÿ M o f fCreek
at Sanitary
Sewer Construction';

AND THAT the boardwalk construction is financed by a

contribution from the Parks Development Charges Reserve
§ Fund in the amount of $77,760 and a contribution from the
I

A
Capital Works Reserve Fund in the amount of $8,640.

CARRIED
R
\

'J
li
Financial Statements f

DRAYTON
THEATRES INC.

FOUHBBU lT\0f'|thS B|'\dBd DBCBmb8f 31, 2007

 KPMG LLP Telephone tsisl mvsaoo
Chartered Accounnnts Fax (5191 7478830
115 King Street South internet www.l
2nd Floor
Wateroo ON NZJ SA3

AUDITORS' REPORT TO THE DIRECTORS

We have audited the statement of financial position ol Drayton Theatres inc. as at December 31, 2007
and the statements ol operations and changes in net assets and cash flows for the fourteen months then
ended. These financial statements are the responsibility of the organization's management Our
responsibilityls to express an opinion on these nnancial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we plan and perform an audit to obtain reasonable assurance whether the financial
statements are free of material misstatement An audit includes examining, on a test basis. evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall hnancial statement presentation.
ln our opinion, these financial statements present fairly, in all material respects, the financial position of
the organization as at December 31, 2007 and the results of its operations and its cash llows for the
year
then ended in accordance with Canadian generally accepted accounting principles.

,féf/.4 þÿ 1 4

Chartered Accountants. Licensed Public Accountants

Waterloo, Canada
February 1, 2008

KPMG LLP is | Cunnan lirmttd labilvty pmnusho and | meme: lam of the KPMG
nofwonr ol inoooondom rmfnber time pliiliutsd wnh KPMG Int|mnonel_ | Swiss cooperative
DRAYTON THEATRES INC.
Statement of Financial Position

December 31, 2007 with comparative figures for October 31. 2006

Alan Lund The Next Total Total

Operating Memorial Stage Campaign December 31. October 31.

Fund Fund Fund 2007 2005

Assets

Current assets:
Cash end marketable
securities 2,024,477 S 914 S -
S 2.025.391 1,742.553
Account! reosivlble 58.651 -
58.651 112.795
nwenrofy 25.145 -
25.145 23.751
Prepaid expenses 236.312 236.312 171.725
Due from Alan Lund 149 -

Due from The Next Stage

Campa' Fund' 1,338,742 - -

3.693.476 914 -
2.345.499 2.050.824

Capital assets (note 3) 2.705.535 -

3.992.981 6,898,516 8.977.485

Long-term investments
(martet value $519.9S4;
2008 814.843) (note 4)
-
519.954 519,954 13.899

s 6.906.965 s 914 s 3.992.981 s 9,543,959 s 9_042_1;¢

1
 Alan Lund The Nell Total Total
Operating Memorial StageCampaignDecember 31, October 31,
Fund Fund Fund 2007 2006

Liabilities and Fund Balances

Current liabilities:
Aooounle payable and
accrued liabllltlee $ 229.568 S -
S -
S 229.508 S 360.366
Ticket revenue
recelvad In advance 1.189.534 - -
1,189,534 725,040
Delerred contributions 61.727 - -
61,727 41,750
Due lo Operelhg Fund' -
149 1,338,742 -
-

1,480,847 149 1,338,742 1,480,847 1,128,063

Q54-
Long-lenn llabilillesz -W" aw
Mortgagepayable (note 6) 232.750 232.750 275.000
Deferred contributions related
to capital lasers (note 8) 894.795 694.795 706.068
827.545 927,545 981,088

Net assets:
Invented ln capital aasete
(note 7) 2.705.535 -
3.085.438 5,770,971 5.996.397
Externallyrestricted -
765 -
765 1,531
Unrestricted 2.002.519 -

(1,330,'/42) 663.777 273,275

lntemally realrlcled (note 11) 720,064 . _
12°'06Q $1.654
5, 428.1 1 0 766 1,726,694 7,155,577 6,833,057
i Commitments (nele 9)
4
Subsequent events (note 12)

5 S 6.908.965 S 914 S 3,992,081 S 9,563,960 S 9,042,153

°
Inter-lund balances are offset and eliminated In
i arriving al total assets and total liabilities for all funds . as reported ln
1 the lolal columns.
i

See accompanying noles to llnancial statements.

On behalf ofthe Board;

Director

Director

QI
DRAYTON THEATRES INC.
Statement of Operationsand Changes tn Net Assets

Fourteen months ended December 31. 2007, with comparativefigures for the year ended October 31. 2006

Aten Lund The Next Totel Totel

Operettng Memorial Stage CempetgnDecember 31. Qctober 31,
Fund Fund Fund 2007 2006

Revenue:
11ct1eteeIee 5.507.620 S 5.032 S -
S 6.513.601 5 5,010,839
Corporete sponsors 226.300 - -

228.308 240.735
Donetione end mernberships 295.685 250 101.499 397.614 574,603
Fundraising end retttee 345.557 -
01,000 426,557 407,502
Capitol refurbishment tees 383.125 - -

303,125 352.071
Merchandising end concessions 264,582 -
264.532 23.018
Investment income 109.460 109,468 71.574
Government grente 18,760 - -
10,700 15,636
other 451,033 - -
451,133 312,140
7,605,327 6,002 182,499 7,793,900 7.211.358
Operatingexpendiuree:
Production 4.358.841 955 -
4,359,790 3,579,204
Marketing 687,272 1,143 668,415 524,706
Fundraising 98.964 -
90.984 181,022
Generel end administration 1,483,192 -
1,483,192 1,211,700
Owupency costs 365.115 '

365.115 300,045
Merohendietng end conoeeetone 155.954 _ -
155.954 138,307
017101 »
4,750 '
4,750 3,557
7,129,330 8.848 -
7,130,106 6,018,601

Excess ot revenue ever

expenditures (expenditures over revenue)

before other expeneee 475.939 (756) 182,499 551,722 l_192,1§7

Other expeneee (revenue):

Amortization of cepttel eeeets 200,252 139.776 428.028 336.532
Amortization ol deferred ceoltet contributions
þÿ ( 2 | _ 2 1 (21213)
3)
-

(|7_5°°)
'f\°°"°* 19.132 19,732
-

10,132
þÿ ° ' P * \ ° ' ° ° ' P -

11.715 0.715 4.127

288.252 148,950 435.202 341.291

Exceee of revenue over

expenmtures (expenditures over revenue) 107.137 (795) 35_5QQ 222,529 351,55

N01 'mlm ef Period

0091110109 5.240.381 1,531 1.691.145 8.933.067 s.oa1.sv1

N" þÿ * ° \ W
'- °' P°"°¢ S 6.42».11a s rss s 1,728,694 s 7.155.577 1 6.033.067

See accompanying notes to financial statements.

3
DRAYTON THEATRES INC.
Statement of Cash Flows

Fourteen months ended December 31, 2007, with comparativetiguresior

the year ended October 31, 2006

December 31, October 31,

2007 2006

Cash provided by (used in):

Operations:
Excess of revenue over expenditures S 222.520 $ 851,466
Items not involvingcash:
Amortization ol capilat assets 428,028 336,532
Mortgagepayableforgiveness (10.000) (37,500)
Amortization of deferred capital contributions (21173) (17500)
Change in non-cash operating workingcapital:
Accounts receivable 54.144 70,516
inventory (1.394) 270
Prepaid expenses (64,587) 16,413
Accounts payable and accrued liabilities (130,779) (387,809)
Ticket revenue received in advance 463.586 387,341
Deferred contributions 19,977 18,500
960,222 1,238,229

Financing:
Repaymentof mortgage (32,250) -

Additions lo deterred ital contributions 10,000 37,500

(22,250) 37,500

investments:
Capital assets purchased or constructed during the year (149,079) (294,484)
Investments purchased durln the ear (506,055) -

(655,134) (294,484)

Increase in cash and marketable securities 282,838 981,245

Cash and marketable securities, beginning ot period 1,742,553 761.308

"

cash and ma'nsecu'n"ties.endofperiod'"s2.025.391s1,742,553

secu'n"ties.
end of period' s 2.025.391 s 1,742,553

Cash and marketable securities is comprised ot

Om S 244.319 s 190.930
, _

Marketable secunties (market value $1,781,072; -

October 31. 2006 $1.551.623l

-

1.781.072 1.551.623

Cash and marketable securities. end of period 5 2,025,391 3 1,742,553

See accompanying notes to financial statements.

4
 DRAYTON THEATRES INC.
Notes to Financial Statements .

Fourteen months ended December 31, 2007

Act and its

The organizationis incorporatedwithout share capital under the Ontario Corporations
The organizationis to be carried on
principal activity is organizingand running theatrical performances.
without monetary gain to its members.

1. Significant accounting policies:

(a) Restricted fund method of accounting for contributions:

_

Net assets
The organization follows the restricted fund method of accounting for contributions.
include the Operating Fund, Alan Lund Memorial Fund, and The Next Stage CampaignFund. The
balances in the Alan Lund Memorial Fund and The Next StageCampaignFund are considered to be
externally restricted. The OperatingFund balance Includes amounts invested in capital assets and
an unrestricted balance representing the net working capital and long-term investments of the
Operating Fund.
Alan Lund Memorial Fund: _

The Fund replenished from the net proceeds of memorial scholarship concerts held periodicaliyto
ls

recognize special contribution of director, Alan Lund, to the organization. Scholarships are
the
awarded periodically to individuals associated with the organizations current season who are

training to further their careers in the arts.

The Next Stage Campaign Fund:

ln 2004, the Fund was established to lully finance the $3,500,000 St. Jacobs Country Playhouse
project over the next four years. Amounts received in this fund will be transferred to the Operating
Fund when the capital project is completed.

(b) Revenue recognition:

Restricted contributions related to general operations are recognized as revenue of the Operating
Fund in the year in which the related expenses are incurred. All other restricted contributions are

recognued as revenue of the appropriate restricted fund.

Unrestricted contributions are recognizedln the OperatingFund in the year received or receivable if
the amount to be received can be reasonably estimated and collection is reasonablyassured.

Restricted contributions related forgiveness of repayment of debt to fund a capital purchase is

to the

recognized as revenue In the operating fund in the same period that the capital asset amortization is
recognized.

i
DRAYTON TH EATRES INC.
Notes to Financial Statements, continued

Fourteen months ended December 31. 2007

1. Significant accounting policies (continued):

(C) inventory: ,

Inventoryis stated at the lower ol cost and net realizable value.

(U) Capital assets:

Capital assets are recorded at cost and are amortized when in use, on the straight-linebasls over
their estimated useful lives as foilmlvsz

Buildings 25 to 40 years
Furniture and equipment 5 to 20 years
Leasehold improvements 23 to 25 years

(G) Donated services:

The organizationutilizes the voluntaryservice of many members and others. Donated services are
not recognized in these financial statements since such services are not normally purchased
by the
organization and because of the dllticultyof determiningtheir fair value,

(0 Tax SIBYUBI

The organization ls a charitable organization under the Income Tax Act and as such is exempt from
income taxes,

(Q) interest forgiveness:

Interest on the mortgage payable that has been forgiven during the period of $19,732 (2006 -

518.132) has been shown as a donation and interest expense.

(fl) Financial instruments:

Unless otherwise noted, it is managemenfs opinion that the
organization is not exposed to
signiicant interest rates, currency or credit risks
arising from its iinancial instruments.