St. John 2012

The City of Saint John
Consolidated Financial Statements

December 31,2012
The City of Saint John

December 31,2012
CONTENTS
Consolidated Financial Statements Auditors'Report

Consolidated Statement of Financial Position Consolidated Statement of Operations and Accumulated Surplus Consolidated Statement of Changes in Net Debt Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements
1-2
3
4 5 6
7 -39
DeloitteDeloitte LLP Brunswick House P.O. Box 6549 44 Chipman Hill, 7th Floor
SaintJohn NB E2L4Rg
Canada
Tel:506632-1080
Fax: 506-632-1 21 0 www.deloitte.ca
Independent Auditor's Report

To His Worship The Mayor and Members of Common Council of The City of Saint John
We have audited the accompanying financial statements of The City of Saint John, which comprise the consolidated statements of financialposition as at December 31, 2012, December 31,2011 and January l, 201 l, and the consolidated statements of operations, change in net debt and cash flow for the years ended December 31 , 2072 and Decemb er 31, 201l, and a summary of significant accounting policies and other explanatory information.
Management's Responsibitity for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements.
a basis
We believe that the audit evidence we have obtained in our audits is suf;ficient and appropriate to provide for our qualified audit opinion.
Membre de / Member of Deloitte Touche Tohmatsu Limited
Basis for Qualified Opinion In December 2012, the City's defined benefit pension plan was converted to a shared risk model under Parl2 of the Pension Benefits Act (New Brunswick) ir," city t us concluded that the shared risk model is a defined contribution plan. we were unable to obtain ,utficient uppropriate audit evidence to conclude that accounting for the shared risk model as a defined contribution plan is compliant with public sector accounting standards' Consequently, we were unable to determine whether any retirement benefit liability and related retirement benefit expense should be recorded u, ut D".". ber 31,2012.
The city has not recorded a retirement benefit liability in the statement of financial position as at December 3l' 2011 and January l,2oll relating to the defined benefit pension pilr'th"t existed prior to the conversion to the shared risk model. Furthea the statement of operaiions does not report the expense for retirement benefits for the year ended December 31,2011. This constitutes u a"furtu." from canadian public sector accounting standards.
Qualified Opinion
In our opinion, except for the effects of the matters described in the Basis for eualified opinion paragraph, the financial statements present fairly, in all material respects, the firancial position of The city of saint John as at December 3l,2\ll,December 3l,20ll ani January l,2oll,aind the results of its operations, changes in net debt, and its cash flows for the years ended December 3l,20l2and 201 I in accordance with canadian public sector accounting standards.
Jra,L kr
Chartered Accountants
October 28,2013
The City of Saint John Consolidated Statement of Financial position

As at December 31,2012
December 31, December 31, 2012 2011 (Note 2)

$ $
January
2011
l,
(Note 2)
$
Financial assets
Cash and cash equivalents (Note 5) Accounts receivable (Note 8) lnvestment in Energy Services (Note g) Other investments
4,673,020 26,302,672 57,728,154
7,826,679 37,191,054 s7,858,466 6,131.250
6,826,261 28,855,135 57,641,s06 125.043
Financial liabilities
Accounts payable and accrued liabilities (Note 11)
Deferred revenue Defened government transfers (Note 12) Accrued pension liability (Note 14) Post employment benefits and compensated absences (Note 14) Bank loan payable (Note 4) 36,325,649 1,gg3,969
45,713,972
1,735,851
38,008,918
1,660,20,1
13,849,716
5,067,131 25,050,701 12,167,000
11,932,523
8,730,471 13,597,200 10,000,000 196,383,110
3,000,270 9,703,990
13,007,601
term debt
20,000,000 157.491
288,093,127 242,872,444
,rrr,rrr.rril,.,rr.oru,urr',,ror,oro,onr',
Non-financial asseG
lnventory
Prepaids Deferred expenses 1,293,937 1,179,957 1,356,248 1,186,977
1,349,901
394,703
910,4,0
730,700
899,208,064
Accumulated surolus
Contingencies (Note 15) Commitments (Note 16)
Approved by:
MelNorton, Mayor
-/Z ^-
, Chair of Finance Committee
The accompanying notes are an integral part of these consolidated financial statements.
The Gity of Saint John
consolidated statement of operations and Accumulated surptus

Forthe year ended December 31,2012
2012
2012
Budget (Unaudited)
(Note 3)
$
2011
(Note 2)
Revenues Propeily taxes

Unconditional grant Other revenue from own sources Water & sewer revenue (Note 18) Miscellaneous revenue Contributions from others lncome from services
114,504,447 19,203,728 23,057,791 33,667,000
114,5O4,U5
19,959,731
108,815,058 19,364,825
26,992,750 32,656,592
28,U2,965
32,053,304 2,361,227 27,613,987
21
302,228
790,000
721,975
23,997,376
Expenses
General Government Services Protective services Transportation services 43,560,897
47,596,029
57,224,560 46,190,164
39,235,530
48,il2,179
46,928,003 30,3s6,383
u,736,942
36,887,s56
3,965,640 21,109,081
4,262,492
31,979,922 3,599,905
19,299,970
Water and sewer services

Environmental health services Environmental development services Recreational and cultural services Loss from servrces
3,994,762
20,021,587 9,369,593
9,148,414
g,ggg,162
The accompanying notes are an integral part of these consotidated financiat statements.
The City of Saint John Consolidated Statement of Changes in Net Debt

For the year ended December 91, 2012
2012
$
2011
$
Annualsurplus
Acquisition of tangible capital assets (Note 22) Disposal of tangible capital assets (Note 22) Amortization of tangible capital assets (Note 22)
Decrease (increase) in inventory Decrease (increase) in prepaids lncrease in deferred
6,156,492
(63,096,444)
20,330,289 (88,334,294)
2,002,390
34,343,999 62,311
2,042,998
31,829,149 (6,347)
8,020
(7e2,274)
lncrease in net
assets
(26,g59.53s1 (55,991,46g)
(179,085,6781 (143,424,499)
Net debt, beginning of year
The City of Saint John Consolidated Statement of Cash FIows

2012
$
2011
$
Operating transactions
Annual surplus (defi cit)
6,156,492
34,343,999
20,330,299
ltems not involving cash

Amortization of tangible capital assets (Note 22)
Loss on disposal of tangible capital assets 31,929,149 1,966,903
1,762,693
i0,ggg,3g2
(91399,323)
Change in non-cash assets and liabilities Accounts receivable Accounts payable and a,,v qw,ueu accrued ,,sv.,.so liabilities (Note r rr, \rrvre 11) Deferrgd revenue
Deferred government transfers (Note
(g,335,g1g)
7,705,054
75,650
12) 14)
Accrued pension liability (Note
14)
158,118 1,9i7,ig3
(3,663,340)
g,g32,2*g
(973,519) 589,599 (6,347)
Other post employment liabilities (Note
lnventory Prepaids Deferred expenses

Capital transactions
Acquisitions of tangible capital assets (Note 22) Proceeds on sale of
tl,4S3,SOl 62,g11 8,020 (179,700)

53,519,245
(63,096,444) (62,856,758)
(292,274)
(730,700r
60,590,139
(88,334,294)
(88,258,196)
Financing transactions
Repayment of long term debt (Note 13) Proceeds from long term debt (Note 13) Proceeds from bank loan (20,169,494) 24,721,257 167 (17,608,357) 56,500,000 0
Net increase (decreases) in cash and cash equivalents

Cash and cash equivalents, beqinning of
(3,153,659) 7
1,000,418
1
The Gity of Saint John Notes to the Consolidated Financiat Statements

For the year ended December 31,2012
1.
Purpose of the organization

The City of Saint John (the "City") was incorporated by royal charter in 1_78!. As_a municipality, the City is exempt from income taxes under Section 149(1)(c) of the Canadian tncome TaxAct. The City tras tf,e fotiowing ;ist; s1;i;ment, "we are energized, engaged people comm.itted to_ w_orking together to provide ilri""" that ire ,esfonsve to community needs and delivered in a sustainable, cost effectivl wJy.'
Change in accounting framework

Effective January 1 , 2011..,_{he City adopted Public Sector Accounting Standards ("pSAS,') of the Canadian lnstitute of Chartered Accountants ("C|CA") Handbook. The City has early adJpted tne aciountin!'standards constained in pS 1201 - Financial statement presentation, PS 3410 - Government tranifers. The City has-chosen not to ear-fy aOopt es 2601 ' Foreign currency translation and PS 3450 - Financial instruments in ihe preparation of thesl financial statements. The City previously prepared its financial statements in accordance with the accounting-printipl"s prescribed for New Brunswick municipalities by the Department of Local Government. !n accordance with PS 2125 of the CICA Handbook, First-time adoption by government organizations, ("pS 2125"), the date of transition to the new standards is January 1,2011and the giti prepared pre"enGO an olening !f: statement of financial position at the date of transition to the new standards. This'statement"id of financiat foiigon is tne starting point for the City's accounting under the new standards. ln its opening statement of financial pbsition, unOer recognized all assets and liabilities whose recognition is required by the new standards; did not recognize items as assets or liabilities if the new standards do not permit such recognition; reclassified items that it recognized previously as one type of asset or liability, but are recognized as a different
the recommendations of PS 2125, the City:
a) b)
c)
d)
type of asset or liability under the new standards; and
applied the new standards in measuring all recognized assets and liabilities.
ln accordance with PS 2125, the.acc_ounting policies set out in Note 3 have been consistenly applied to all years presented and adjustments resulting from the adoption of the new standards have been applied retrospectively with restatement of prior periods.The City has elected not to adopt any of the exemptions availabie under pS i12S
government programs. The standard requires these assets to be recorded at historical cost on the balance sheet and their costs allocated to future accounting periods through annual amortization expenses based on the tangible capital assets estimated useful lives of the assets. The City was required to record the historical cost of their tanlibb capital assets and accumulated amortization on a retroactive basis with restatement of prior years.
are a significant economic resource managed by government and. a key component in th6l delivery of many
PS 3150 has established standards on how to account for and report tangible capital assets. Tangible capital assets
The City determined historical cost based on historical accounting records, and discounted replacement costs. lf
historical cost could not be determined, the asset was recorded at a nominal value.
The City calculated and recorded liabilities for its sick leave accrual, defined benefit pension plan and other post employment benefits.
The City of Saint John Notes to the Consolidated Financial Statements

Change in accounting framework [Cont.dt
The December
31 , 2011 figures, presented for comparative purposes, have been restated from those previously reported. The following adjustments were made to the prior period:
Adjustments to annual surplus (deficit)

Annual surplus, as previously reported in the Operating Fund Annual surplus of other funds
Less: second previous year surplus Less: sick leave Less: amortization of tangible capital assets Less: post employment expense Less: pension expense Less: Controlled entities eliminations and adjustments
a
(73,704)
52,633,618 (537,183) (237,000) b c d
A
(27,9y+,573) 703,920
(1,886,139) (2,338,650)
Adjustments to net book value of tangible capital assets As previously reported, December 31,2010
Adjustment to historical cost of tangible capital assets, net Amortization expense recorded
g g
941,408,750
(10,371,s37)
(31,829,149)
As restated at December 31,
201{
g99,20g,064
See Note 23 for the reconciliation of accumulated surplus (deficit).
(a) The Municipality's Act requires that the Ggngral Operating Fund surplus (deficit) be absorbed into the operating budget of the second subsequent year and that the Water and Sewerage Operating Fund surplus (deflcit) be absorbed into one or more of four operating budgets commencing with the second ensuing year. Tne'prior year
surplus (deficit) was reclassified to accumulated surplus to be in compliance with PSAS. (b) The City calculated and recorded liability for sick leave accrual in accordance with PSAS. The actuariat valuation of the sick leave benefit was conducted as at December 31,2012.
Local Government, the City was not required to record amortization for its tangible capital assets. ln accordance with PS 3150, the City recorded its tangible capital assets and accumulated amortization on a retroactive basis with restatements of prior years. (d) Previously, actuarial gains or losses were recorded as revenues or expenses in the year the acturiat valuation was completed. Under PSAS, actuarial gain or loss is amortized over the expected average remaining service life (EARSL)
(c) ln accordance with the accounting principles prescribed for New Brunswick municipalities by the Department of
for active employees.
(e) Previously, the City received approval from the Province of New Brunswick to defer and amortize special going

2.
Change in accounting framework [Cont'dl concern pension payments. ln accordance with PSAS, the payments are expensed rather than deferred. pension
expense was adjusted due to the change in accounting framework. (f) Revenues and expenses between the City and its controlled entities were etiminated. Costs, previously recorded as fixed assets, which do not qualify as tangible capital assets in accordance with PS 3150 were reclassified to expense. (g) Previously, the City recorded capital expenditures as fixed assets in the Capital Fund. ln accordance with pS 3150, a tangible capital asset inventory was created and valued. lf historical costs were not known, the deflated replacement
or deflated assessment cost methodology was used. The existing fixed asset balances were eliminated and the new tangible capital asset amounts were recorded. The accumulated amortization and amortization expense was recorded on a retroactive basis.
3.
Summary of significant accounting policies
The consolidated financial statements of the City are the representations of the City's management prepared in accordance with Canadian generally accepted accounting principles for local governments, as recommended by the
Public Sector Accounting Board ('PSAB") of the Canadian lnstitute of Chartered Accountants. Signifieant aspects of the accounting policies adopted by the City are as follows:
Reporting entity The consolidated financial statements reflect the assets, liabilities, revenues, expenditures and changes in net debt and cash flows of the reporting entity. The reporting entity is comprised of all organizations and enterprises accountable for the administration of th6ir affairs and relourcei to tne iity anO which are owned or controlbd by the
City.
lnterdepartmental and organizationaltransactions and balances are eliminated.
The focus of PSA financial statements is on the financial position of the City and the changes thereto. The
Consolidated Statement of Financial Position includes all of the assets and liabilities of the City.
The entities included in the consolidated financial statements are as follows: The City of Saint John General Operating Fund
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
The City of Saint John Capital and Loan Fund The City of Saint John Water and Sewerage Utility Operating Fund The City of Saint John Water and Sewerage Utility - Capital and Loan Fund Saint John Parking Commission Saint John Transit Commission
Saint John Non Profit Housing lnc. Saint John Development Corporation Saint John lndustrial Parks lnc. Harbour Station Commission Saint John Aquatic Centre Commission
1'1.
The City of Saint John Notes to the Gonsolidated Financiat Statements

3.
Summary of significant accounting policies [Cont.d] Reporting entity [Cont'd]
12. 13. 14. 15. 16. 17.
Saint John Trade and Convention Centre Saint John Energy Lord Beaverbrook Rink Saint John,Police Commission Saint John Free Public Library Saint John Jeux Canada Games Foundation, lnc.
lnvestment in Energy Services The City's investment in Saint John Energy is accounted for on a modified equity basis, consistent with generally accepted accounting principles as recomme.nded by PSAS for government businesi enterprises. U;de;iiie'modified equity basis of accounting, the business enterprise's accounting principles are not adjusted to conform wittr'tnose of the City and inter-organizationaltransactions and balances are not eliminated. The City recognizes ii. interest drii in the annual income or loss of Saint John Energy in its consolidated statement of operatiois with a co'rielponAing increase or decrease in its investment asset account. Budget
The budget figures contained in these financial statements were approved by Council on February 1st,2012 and the Minister of Local Government on August 9th,2012. The budget is unaudited and does not include Lf imination of interorganizational revenues and expenses with controlled entities. Revenue recognition Unrestricted revenue is recorded on an accrual basis and is recognized when cottection is reasonably assured. Restricted contributions are recognized as revenue in the year in which the related expenses are incuired. Other revenue is recorded when it is earned. Property taxes, which are authorized by Council, are recognized as revenues in the period for which the taxes are
levied.
Government transfers
The City has early adopted the accounting standards contained in PS 3410
- Government transfers in the preparation of these financial statements. Early adoption of this standard did not result in any changes in the City,s'accounting policies or financial statements from those previously reported.
Government transfers are recognized in the consolidated financial statements as revenues in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, except to the extent that transfer stipulations give rise to an obligation that meets the definition of a liability and reasonable estimates of the amounts can be made. Transfers are recognized as deferred revenue when amounts have been received but not all eligibility criteria have been met.
10

For the year ended December 91, 2O1Z
3.
Summary of significant accounting policies [Gont.dt

Expenses Expenses are recorded on an accrual basis. The cost of all goods consumed and services received during the year is
expensed.
Measurement uncertainty
make estimates and assumptions that affect the reported amounts of assets and liabilities and disc]osure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the year. Key components of the consolidated financial statements requiring management to make estimates include: the useful life of capital assets, impairment of tangible capital assets,'ratei for amortization and allowance for doubtful accounts in respect of receivables.
Estimates are based on the best information available at the time of preparation of the financial statements and are reviewed annually to reflect new information as it becomes availabte. Measurement uncertainty exists in these financial statements. Actual results could differ from those estimates.
The preparation of the consolidated financial statements in accordance with Canadian pSAS requires management to
Financial instruments The City's financial instruments consist of cash and cash equivalents, accounts receivable, investment in Energy
Services, other investments, accounts payable and accrued liabilities, bank loan payable, and long term debt. Unless otherwise noted, it is management's opinion that the City is not exposed to significant interest, cuirency or credit 6sk arising from these financial instruments. The fair value of these financial instruments approximates their carrying values, unless otherwise noted.
The City is subject to credit risk through accounts receivable. The City minimizes credit risk through ongoing credit
management.
Gash and cash equivalents

Cash and cash equivalents include cash on hand, balances with banks and short term deposits with original maturities of three months or less.
Tangible capital assets

Effective January 1,2011, the City of Saint John adopted the provisions of PSAS section 3150 Tangible Capital Assets. Tangible capital assets are non-financial assets having a physical substance that:
tangible assets;
Are held for use by the municipality in the productions or supply of goods and services, for rentals to other, for administrative purposes or for the development, construction, maintenance or repair of other
Have useful lives extending beyond one year and are intended to be used on a continual basis; Have a minimum value of $5,000 for individual assets; or $25,000 for pooled assets
11
The City of Saint John Notes to the Gonsolidated Financial Statements

3.
Summary of significant accounting policies [Cont,d] Tangible capita! assets [Cont'd]
Are not intended for sale in the ordinary course of operations.
Tangible capital assets are recorded at cost which includes all amounts that are direcly attributabte to acquisition, construction, development or betterment of the asset. Assets that fall below the threshold amounti aie expenseO for accounting purposes. The cost of the tangible capital asset is amortized on a straight line over ttre eslimild useful
life as follows:
Asset Type
Equipment and light machinery Furniture and office equipment
I
Years 3 -25
nformation technology equipment and software
5-15 1-15
N/A
Land
Land improvements Leasehold improvements Municipal buildings Transportation Motor vehicles and mobile equipment
5-100
Term of lease
10 -70
5-50
s -20 5-100
Water and wastewater networks

ln the year of acquisition and the year of disposal, one half of the annual amortization expense is recognized.
Assets under construction are not amortized until the asset is available for productive use. Tangible capital assets are written down when conditions indicate that there is impairment in the value of the assets and the reduction in the value can be objectively estimated and it is expected to be permanent. The net write{owns are accounted for as expenses in the statement of operations. Donated or contributed assets are recorded at fair market value at the date of construction or donation. ln some circumstances, replacement cost may be used.
Segmented information The City provides a wide range of services to its residents. For management reporting purposes, operations and
activities are organized and reported by function. This presentation was created for the purpose of recording specific activities to attain certain objectives in accordance with special regulations, restrictions or limitations. illunicipal services are provided by service areas as follows: General government seruices This segment is responsible for the overall governance and financial administration of the City. This includes
12

Summary of significant accounting policies [Gont'd] Segmented information [Cont'd]

Council functions, general and financial management, legal matters and compliance with legislation as well as civic relations.
Protective seruices
This segment is responsible for the provision of policing services, fire protection, emergency measures, animal control and other protective measures.
Transportation seryices
This segment is responsible for common services, roads and streets maintenance, street lighting, traffic
services, parking and other transportation related functions. Water and sewer services
This segment is responsible for the provision of water and sewer services including the maintenance and
operation of the underground networks, treatment plants, reservoirs and lagoons.
Environmental health services

This segment is responsible for the provision of waste collection and disposal.
Environmental development services This segment is responsible for planning and zoning, community development, tourism and other municipal
development and promotion services.
Recreation and cultural services

This segment is responsible for the maintenance and operation of recreational and culturalfacilities, including the swimming pool, arenas, parks and playgrounds and other recreational and culturalfacilities. Energy services
This segment comprises a non{enerating distribution utility that supplies electricity to municipal, residential, general service and industrial customers through 12 interconnection supply points and substations located in the City of Saint John. lt also provides street lighting, area lighting and water heater rental services.
lnventory
lnventory is valued at the lower of cost and net replacement cost with cost being determined on the first in, first out
basis.
13

Summary of significant accounting policies [Cont,d] Post employment benefits

The City recognizes its obligations under post-employment benefit plans and the related costs, as disclosed in Note 14. Where appropriate, the City has undertaken actuarial valuations.
4.
Bank loan payable

The City has credit facilities with the Bank of Nova Scotia. According to the terms and conditions of the commitment letter signed between the City and the Bank of Nova Scotia, the Cifu can borrow up to g5.5 million to funa feneraf operations and $25 million to assist in financing capital expenditurLs- pending fall-in of long term nnrncinf.ff," interest rate for the credit facilities is the Bank's prime lending rate from timl to time less 0. So/o pet annrlm with interest payable monthly. As at December 31, 2012, lhe balance the bridge financing .r"Oit i""ifit,,". $10,000,000 (2011 - $10,000,000) and the balance of the operating line of-of credit was 52, toz,ooo i2o1 f - Soj. '
5.
Cash
Cash consists of the following:
December
2012 $$
31, December3i,
2011
January
2011
$
l,
Unrestricted cash
1,149,392
4,067,663
3,146,589
Restricted cash
Reserve for capital purchase
234,500 5,042
56,696 48,772
210,000 1,139
55,571
185,500 6,355 63,946
Airspace 2049 fund

Land subdivision fund Saint John Non Profit Housing future development fund Deposits on contracts Saint John Non Profit Housing replacement reserve Saint John Non Profit Housing subsidy surplus reserve
48,187
47,614
488,418 2,802,888
84,951
261,602
2,834,417 93,609
492,322 2,847,566
104,231
14

Due from the federal government and its agencies
Amounts due from the federal government and its agencies consist of the following:
December3{, December3l, January i,
2012 $$$
2011
2011 2,224,670 1,670,600 4,153,777
Canada Revenue Agency HST receivable

Harbour Cleanup Fund Gas Tax Fund
1,624,366 2,946,590
2,496,770
1,992,600
10,575,764
351,661 344,291 1,638,446
Stimulus Grant Municipal Rural lnfrastructure Fund Other 279,955
1,530,279
Due from the Province of New Brunswick Amounts due from the Province of New Brunswick consists of the following:
December3l, December3i, January i,
2012 $$$
351,661 936,219
2011
2011 '1,670,592
Harbour Cleanup Fund Peel Plaza Provincial Contribution
3,214,000
5,633,454
3,343,879 4,917,224 1,638,446
Municipal Rural lnfrastructure Fund Stimulus Grant Other
4,153,777 991,990 10.891.s39
2,534,149
8.358.s18
10.135.334
15

8.
Accounts receivable
Accounts receivable consist of the following: December
2012 $$$
31, December3l, January i,
2011
2o1i
Due from the Province of New Brunswick (Note 7) Due from the Federal Government (Note 6)
10,135,334 5,266,999 6,668,103
10,891,539 16,873,535
8,358,518 9,579,326
Water and sewer from ratepayers Other Allowance for doubtful accounts
6,314,583 4,069,312 (e57,e1s)
6,217,265
5,323,007 (622,981)
5,245,465
(1,013,1291
lnvestment in energy services

Change in equity in Saint John Energy:
2012
$
2011
$
Equity at beginning of year Net (loss) earnings
57,959,466 (130,312)
57,641,506 216,960
10. Other investments
Other investments consist of the following:
December
2012 $$$
31,
December
31, 2011
628,460
January
2011
1,
Canada Games Foundation investments Other investments
5,823,909 973,563
5,502,790
5,525,073 599,970
The investments of the Canada Games Foundation are held in the custody of Scotiatrust and CIBC Melon. The Foundation's investment strategy is to hold high quality corporate or Government bonds and liquid equity investments which bear no unusual credit or interest rate risk. Fair values of investments in fixed income securitiei and equities
are determined using year end quoted market prices.
16

11. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities consists of the following: December 31, December 31, 2012 2011
$
January {,
2011
$
Trade payables
Payroll Deposits Payable to Canada Revenue Agency Conferences and holdings
30,027,633 4,354,559 570,994
39,313,600 3,904,133 976,817 57,148 387,604
31,041,609 4,649,983 928,779 54,987 479,409
23,625
39g,269
lnterest payable Other
661,42
289,237 36.325.649
745,253
329,417
704,443
149,708 38.008.918
45.713.972
12. Deferred government transfers

Deferred government transfers consist of the following:
December
2012 $$
31, December 31,

2011
January {,
2011
$
Gas Tax Funding Parking garage Other government transfers
6,082,1U
7,767,532
9,020,144 2,890,992 21,387
2,875,496
124,774
{3,849,716 11,932.523
3.000.270
Funding received as part of the Gas Tax Funding program is recorded as revenue in the year during which related expenditures are incurred. Monies that have not been spent are recorded as deferred government transfers on the consolidated statement of financial position
the garage.
lieu of future operating expenses, excluding HST, for the parking garage. The Province is holding back $278,6218 for seasonalwork not completed at year end. Contributions will be recognized as revenue upon substantial completion of
ln February, 2010, the Saint John Parking Commission entered into a capital cost agreement with the Province of New Brunswick ('the Province') for the Carleton Street Parking Garage. Amended capital cost agreements have resulted in the Province contributing $6,966,180 for construction costs and an additional $1,080,000 contribution in
17
The Gity of Saint John Notes to the Consolidated Financial Statements

13. Long term debt

Debentures consist of the following:
lnterest
Year of lssue ltlew Brunswick Munlcipal Finance Corporation
Rate
Annua!
Term
(Y6ar8l
Paymont
$
2012
$
Jan.
2011
$
l,
2011
Yo
Debentures
2001 2002 2003 2003 2003 2004 2004 2005 2005 2006 2006 2007
2007
2.450 to 5.500 3.375 to 5.750 3.050 to 5.000 2.750 to 5.125 3.375 to 5.750 2.750 to 4.800 3.050 to 5.000 3.750 to 4.375 2.7501o 5.125 4.150 to 4.450 2.750 to 4.800 4.450 to 4.850 3.750 to 4.375 3.300 to 4.850 2.100 to 5.550 4.150 to 4.450
1.000 to 4.500
10 10 10 10
10
1,566,000
972,000
1,788,000 1,788,000 1,862,000 1,862,000
44,000 57,000
648,000
1,566,000 3,132,000 3,576,000 5,364,000 3,724,000 5,586,000
44,000 394,000 6,064,000 320,000 540,000

9,05{r,000
88,000
12,385,000
132,000
10
1,255,000 ll,{30,000
13,640,000 508,000
't0
10 10
10
451,000
6,712,000
13,335,000
40,000
1,133,000
7,360,000
360,000 600,000
9,780,000
400,000
12,202,000
10
10
60,000
730,000
14,468,000 660,000
10 10
15
33,000
692,000 542,000 100,000
1,008,000 817,000
10,510,000
335,000 8,232,000 6,832,000 1,r00,000
368,000
401,000
2008 2008 2008 2009 2009 2009 2009 2010 2011 2011 2011 2012
10
10
12,476,000 11,049,000 1,200,000 4,00,t,000 17,500,000 38,533,000 {0,850,000 3,800,000 24,500,000
0.950 to 5.000 4.450 to 4.850 3.300 to 4.850

1.500 to 4.550 1.650 to 4.250 1.350 to 3.450
10
10
1 1 1
10 10
100,000 333,000
1,250,000 2,367,000 650,000
8,924,000 9,616,000 7,374,000 7,916,000 1,200,000 1,300,000 13,484,000 9,358,000 ,866,000 17 ,817,000 ,300,000 1,400,000 4,334,000 4,667,000
20,000,000
18,750,000
41,000,000
11,500,000
't0
10
15
2.100 to 5.550
1.350 to 3.550
200,000
4,000,000
15
OTHER DEBENTURES Canada Mortgage and Houslng Debentures 2009
3.97
15
78,183
1,680,000
1,219,294
1,297,477
'1,680,000
1,372,674
Province of New Brunswick (Pension)

2007 4.36
3,360,000
18

{3.
Long term debt [Cont'd]

Mortgages and other long-term debt consists of the following:
Date
of
Maturity
lnterost
Rate
oh
Payment
s
Jan.
2012
$
l,
2011
$
2011
Canada ltiortgage and Housing Corporation
mortgages
Bicentennial Court Rotary Admiral Beatty Main and Rodney Projects North End Project West Side Project Harbourside South End Project
105 Queen Street Apr 1,2021 Apr 1,2021
1.80
1.80
50,069 296,984 39,047

40,724
454,081
2,693,366 622,868 538,084 517,936 1,903,539 777,794 277,328 345,840 163,421 218,692
Jun 1,2026 Jan 1 ,2024
2.26 2.86 2.65

2.61
oct1,2024
Aug 1,2019
Dec 1,2022 May 1,2O25 Feb '1,2023
Aug 1,2028
36,820 258,156 65,189

18,961
3.16 2.40 3.90 3.09 2.65
46 St. James Street

147 Queen Street
27,238
8,002
504,151 2,990,350 661,915 578,808 554,756 2,161,695 842,982 296,289 373,078 171,426
il8,714
3,254,678
695,689 618,397 590,623
2,413,262
906,168
314,804
399,288 179,188
28 Taylor Avenue
Nov 1, 2029
2,565
Other mortgages
CIBC - Rotary Court Bank of Nova Scotia - 40 46 Main Street Manulife Financial - Leinster Street Bank of Nova Scotia - Broadview Avenue Bank of Nova Scotia - 289 Tumbull May 1, 2014 Nov 1,2011 4.16 5.60 4.70 4.45 5.90
117,279 18,731 .148,640
Aug 1,2018
Oct 1,2013 Sep 1,2013
4,t6t,633
96,570 265,033
6,056
9,989
467,372 4,281,913 102,627 275,021 100,333 750,750 77,500 93,917

1,443,750
485,352
69,971
4,393,868
108,435
2U,445
Family and Community Servlces Affordable Rental Housing Program

Forgivable loan - 40 46 Main Street Forgivable loan - Leinster Street Forgivable loan - Broadview Avenue Forgivable loan - 183 - 185 Wentworth New Brunswick Housing Corporation Promissory note payable - Rotary Admiral Beatty Com May 1,2026
Jul
4.45 4.45 4.80 5.30
7,000 45,500 5,000 7,000
93,333 705,250 72,500 86,917
107,333 796,250
82,500 100,917
1,2028
Jul 1,2027
Jun 1,2025
Apr 1,2031
4.30
75,000
1,368,750
1,201.908 17,551,790
1,135,310 15,814.578 16,728,633
19

13. Long term debt [Cont'd]

ln total, long-term debt consists of:
December
2012 $$
31,
December 31, 2011

179,654,477 16,728,633
January
2011
$
1,
Debentures Mortgages
185,121,294 15,914,579
139,939,674 17,551,790
Mortgages with Canada Mortgage and Housing Corporation are secured by specific rental properties situated in Saint John and in some instances, a general assignment of rental income.
table.
Forgivable loans from the Family and Community Services Affordable Rental Housing Program and the promissory note payable to New Brunswick Housing Corporation are forgiven over a p.eriod of twenty years from the hrst Uay of the month following project interest adjustment date, provided certain conditions are continuously met. Should i toan become payable as a result of default, the remaining unforgiven balance will bear interest at the rate shown in tne
The forgivable loans are secured by specific rental properties situated i.n t!" City of Saint John. During the year, $64,500 was forgiven from the Family and Community Services Affordable Rental Housing program tOedemUei Sf 2011- $6,1,500).
During the year, $75,000 of the promissory note from New Brunswick Housing Corporation was forgiven (December 31, 2011 - $56,250).
The aggregate amount of principal repayments required in each of the next five years to meet provisions of long-term debt, assuming maturity debt is renewed at terms comparable to those currently in effect, is as iollows:
2013 2014 2015 2016

2017
18,449,393 23,687,201 17,929,039 20,823,936 17,265,937 102,881,367
Thereafter
20

14. Post employment benefits and compensated absences

Description of plan benefits
The City provides for the payment of retirement allowances to retiring employees in accordance with the terms of the various collective agreements and Municipal policy. The retirement allowance is based on the member's final annual salary and years of service at retirement. Employees upon retirement from the City are entitled to a retirement allowance equal to one month's pay, to a maximum of six months, for every five years of service. The program has been amended to provide certain employees with a payout option prior to retirement. Accepting the early payout option eliminates further accumulation of retirement allowance entitlement for those employees. The City also provides for employee sick leave. Unused sick leave accumulates to a maximum number of hours which varies by employment agreement. Under this program, employees are not entitled to a cash payment in lieu of sick leave when they leave the City's employment except as described below with respect to the retirement both outside workers (local 18) and firefighters (local771). Upon retirement, members of Local 18 and 771 will be eligible to receive a partial payment for accumutated sick leave credits in excess of 1,760 hours or 2,280 hours respectively. Employees will be paid 10% of their regular rate of pay for each hour in excess of 1,760 or 2,280 hours respectively. For employees of the City of Saint John Fire department, who are unable to work due to heart disease or permanent injury to the lungs, the City pays certain amounts to disabled firefighters or their survivor spouse as a result of the provisions of an Act of the Legislature, known as the Act respecting the Saint John Firefighters's Association.
As at January 1, 2013, the City's pension plan was converted to a shared risk model. As part of the conversion, the City assumed the obligation for paying existing disabili$ pensions that had been granted under the old plan, until disabled members reach the age of 65. On a go forward basis, disability coverage is now provided for employees
through a long term disability insurance carrier.
Finally there are specific agreements that obligate the City to pay top up pensions to certain individuals
Valuation techniques and assumptions Actuarial valuations of the above benefits are done for accounting purposes using the projected benefit method prorated on services. The last actuarial valuation of the post-employment benefit plans was conducted as at December 31,2012. Previous to that, an actuarial valuation was performed on December 31,2011.
The above benefit plans are unfunded and as such, there are no applicable assets. Benefits are paid out of general revenue as they come due.
21

Post employment benefits and compensated absences [Cont,d] A reconciliation of the accrued benefit obligation for these plans, along with the main assumptions used for disclosure
and expense calculations are as follows:
2012
$
2011
$
Accrued benefit obligation, beginning of year
13,597,200 12,606,301 (500,000)
13,007,601
Curent period benefit cost

Past service improvement costs Benefit payments
627,099 (1,364,700) 567,300 759,900
(1,639,500) 524,700 462,000
lnterest cost Actuarial qain or loss Post employment benefits and compensated absences, end of
2012
$
2011
$
Main assumptions used for these plans:

Discount rate Salary increase EARSL Range from
3.74o/o
4.00%
3.00% Range from
3.00%
14to22
14to22
22
The Gity of Saint John Notes to the Consolidated Financiat Statements

14. Post employment benefits and compensated absences [Cont.d]

the following components:
These benefit plans require no contributions from employees. The benefit liability as at December 31, 2012 includes
2012
$
Jan.1,
2011
$
2011
$
Accrued benefit obligation (carrying value)

Retirement allowances 3,531,000 5,117,000 2,992,000 11,913,000 3,466,000 5,200,000 3,634,000 3,385,000 4,963,000 3,439,000 535,700
684,901 13,007,601
Sick leave
Heart and lung pension Disability benefits Contractual top up agreements
742,600
755,101 25,050,701 (910,400)
572,700 724,500 13,597,200

(730,700)
Sick leave - Saint John Transit
Unamortized actuarial loss
The unamortized actuarial losses will be amortized over the expected average remaining service life (EARSL) of the related employee groups starting in the next fiscal year. EARSL is determined separately ior each beneht program.
The total expense related to other employee benefits described above includes the following components: 20'12
$
2011
$
Current period benefit cost Amortization of actuarial loss
12,606,300 266,000
627,100
12,972,300
Other employee benefit interest expense 496,000
627,100 537,000
Total expense related to post-emptoyment benefits and compensated
23

14. Post employment benefits and compensated absences [Gont'd]

Pension obligation
The City of Saint John -P_ension Plan [the "Plan"] is the accumulation of Plan assets formerly used to fund pensions under the revised City of Saint John Pension Act [the'Act'] as en.ac!e! on May 12,1gg4, june f a, 2008, and repealed in 2012. The Act was administered by i Boaro of Trustees iepresenting "i "r"nJ"J.io Common Council of the City of Saint John ('the City"), manageme.nt, unionized emptoyees,. non-unionized'employejs ,"iii"a *ployees. The Plan was also subject to the provisions of the New Brunswick Pension Benefits Act which "na became effective
January 1,1992. During 2012, the Act was repealed and the New Brunswick Pension Benefits Act was amended to allow for the plan to
be converted to a shared risk model. On December 21st, 2012,.a p!_e9!gned pension pf"n-*""-"aopiJ bythe Unions and the City by virtue of a memorandum of understanding [the "MOU"]. The conversion date set tiyine UOU was January 1,2013.
The assets of the Plan are held by RBC Dexia lnvestor Services which acts as custodian of the ptan. The assets of the Plan are managed by eight different investment managers who have discretionary investment *itnin tf," investment mandates approved by the Board of Trustees. The performance of the Pljn relative to otfrers "rtnoiity is measured on a regular basis by API Asset Performance lnc.
Significant features of the Plan are as follows: Pre-conversion, the Plan provided for pensions on the defined benefit basis at the rate of 2o/o per year of service times
overtime pay) earned during the relevant year to a maximum salary of $12O0OO.
the average of the best three consecutive years of service. The Plan also providea for disaUitity allowances and survivor benefits. Upon conversion to shared risk, the Plan no longer provides disability allowancej anJ tne targeteo benefit basis for service earned after the conversion date is now 1.8% per year of service times the satary [exctlaing
Pre-conversion, the Plan provided indexing ,t-tlt9 t"!" of 1o/o per year on the basis of service between January 1, 1975 and December 31 , 1992 and at the rate. of 2o/o after January 1 , 1 993. The shared risk pension plan extinguishes all accrued rights to automatic future indexing. These automatic adjustments have been reptaced by coitingent indexing as permitted by the Funding Policy. All pension amounts are subject to possible later reduction, iinecessary.
Pre-conversion, the Plan was funded by eligible employees contributing 50% of the current service cost to the plan to a maximum of 9Yo of aggregate salaries and the employer contributing the balance of the curent service cost. Based on the 2011 actuarial valuation, the current service cost of the Plan was 21.4% of payroll. At no time could the overall
employer contribution rate be less than 7.5% of aggregate salaries. The employer was obligated to make additional contributions, if necessary, to adequately amortize any unfunded liability. ln 2012, required Jmployer contributions to amortize the unfunded liability amounted to $19,098,800. Under the shared risk model, initial'required contributions will based on pensionable service and will.be 9o/of9r employees in CUPE 18 and 486 and 12o/o'for firefighters and police officers with the employer making initial matching contributions of 11.4o/o and 15.2o/o respectively, reiresenting an average contribution rate of 13o/o of covered payroll. The initial contribution rates for both employee and emptoye-r may be subject to change as a result of the triggering mechanism and limitations imposed by thi shared risk funding policy. Also, commencing April 1, 2013, the employer shall also be required to make temporary contributions of 17o/o of pensionable service that will cease in 15 years or when the Plan achieves a minimum funding level of lilOo/o of liabilities using a 15 year open group method.
24

14. Post employment benefits and compensated absences [Cont,d]

Pension obligation [Cont'dl
Pre-conversion, contributions became vested after two years. Under shared risk, the vesting date is defined as the earlier of five years of continuous employment with the employer or two years of membership in the City of Saint John Shared Risk Plan
During the year, the City made pension contributions of 926,470,886 (2011 - $20,997,103).
15. Contingencies
ln accordance with the Clean Environment Act, the City is also liable for a pro rata share of the debentures and other long-term debt issued on behalf of the Fundy Solid Waste Commission ("Commission"). The portion attributable to the City is determined on the basis of its percentage of total population within all participating municipalities and unincorporated areas. The total of such debt outstanding at December 31,2012 amounted to $a,gZg,dgO eO11 $5,926,000). Based on 2003 population figures, the City is liable for approximately 55% of the Commission's debt.
The City is, from time to time, subject to various investigations, claims, and legal proceedings covering mafters that arise in the ordinary course of its business activities. Management believes that any liability that may uliimately result from the resolution of these mafters will not have a material adverse effect on the consolidated financial position or
operating results of the City. The City is aware of a potential claim(s) related to the Estabrooks matter; however, since no formal claim(s) has been filed, the City is not in a position to estimate the amount of liability, if any, related thereto.
16. Commitments
Greater Saint John Regional Facilities Commission
During 1998, the Greater Saint John Regional Facilities Commission ("Regional Facilities Commission') was created by an Act of the Legislative Assembly of New Brunswick. Under the provisions of the Act, the Regional Facilities Commission has the authority to determine the annual amount of total municipal contribution to be made towards the operation of five regional facilities: the Saint John Aquatic Centre Commission, Harbour Station Commission, the Saint John Trade and Convention Centre, the lmperial Theatre and the Saint John Arts Centre. Under the provisions of the Act, the City's contribution is its pro rata share of the Commission's operating budget based on the tax bases of the participating municipalities. The participating municipalities are the Town of Quispamsis, the Town of Rothesay, the Town of Grand Bay-Wesffield and the City of Saint John. The City's contribution is 68.14% in 2014.
Carleton Street Parking Garage ln 2010, the City entered into an agreement in the amount of $16,699,448 plus HST, with PCL Construction Canada lnc. for the construction of the Carleton Street parking garage. As at December 31 , 2012, costs of $11,094,229,
$1 ,392,1
including holdbacks in the amount of for completion in 2013.
90, related to this contract have been incurred. The project is scheduled
25

17. Short-term borrowings compliance
lnter-fund borrowing The Municipal Financial Reporting Manual requires that shortterm.inter-fund borrowings be repaid in the next year unless the borrowing is for a capital project. The amounts payable between Funds are in compliance with the
requirements.
Operating borrowing
As prescribed in the Municipalities Act, borrowing to finance General Fund operations is limited to 4yo of the City,s
operating budget. Borrowing to finance Utility Fund operations is limited to 50% of the operating budget for the year. ln 2012,the City has complied with these restrictions.
18. Water and Sewer fund
surplus/deficit
The Municipalities Act requires Water and Sewer Fund surplus/deficit amounts to be absorbed into one or more of four Operating Budgets commencing with the second ensuing year; the balance of the surplus/deficit at the end of the
year consists of:
2012
$
2011
$
2012 surplus 2011 surplus 2010 surplus 2009 surplus 2008 deficit 2007 deficit
505,103
4:1,169
43,169
162,934
75,150 (29,455)
217,110
112,722
(s8,914) (101,834)
19. Water cost
transfer
The City's water cost transfer for fire protection is within the maximum allowable by Regulation 81-1g5 under the
Municipalities Act based upon the applicable percentage of water system expenditures for the population.
Funds held in trust Funds administered by the City for the benefit of external parties are not included in the consolidated financial
statements. The amount administered as at December 31 , 2012 was $466,723 (2011 - $457,777).
26

21. Funds and reserves

2012
$
Jan.
2011
$ $
1,
2011 161,000
Reserve for capital purchase, beginning of year
210,000
185,500
Additionalfunds set aside during the year
24,500
24,500
24,500
The City received funding from the Canada - New Brunswick Municipal Rural lnfrastructure Program between 2001 and 2006 to assist with the cost of construction of water and sewerage assets. The agreementi require the City to maintain replacement reserve funds, which can only be used to pay for the cost of replacement of specifieO capital
items, unless otherwise approved by the Minister of Environment and Local Government.
27
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27. Reconciliation of funding deficit upon adoption of pSAS

Deferred
SpecialTopup Heart and
Pension Expense
$
AgreemenE
$
Lung
$
Retirement Allowances
$
Liabilities at December 31,2011 as calculated on adoption of PSA Amount of December 31, 2011 liabilities funded in current year Balance to be funded
8,400,000 (490,000)
480,900
3,075,501
(83,501)
2,932,000
599,000
261,700
28. Revenue and expense support

2012 2012
2011
Budget (Unaudited)
$
$
REVENUE
Other revenues from own sources

General Government Services
Protective services
2,496,546 3,047,649 6,268,034

80,489 9,529,066 1,637,009
2,176,324
3,045,020
820,3U
3,048,716
10,287,876 60,441 12,993,046
Transportation services Environmental health services Environmental development services

Recreational and cultural services
10,127,626
82,722
10,226,U5
1,234,913
1,132,502 29,342,965
23,057,791 26,892,750
Contributions from others
General Government Services
Protective services 59,637 1,072,467
240,OO0
2,195,938 6,796,676 17,942,290 399,437
Transportation services Water and sewer services

Environmental development services Recreational and cultural services
3,335,902 19,009,399 334,769
550,000
187,302
279,656
33

28. Revenue and expense support [Cont'd]

2012
2012
2011
Budget (Unaudited)
$
EXPENDITURES
General government services
Legislative Mayo/s Office

Common Council
201,630
169,119
180,864
427,500
721,762
s36,030
City Manager
City Manager Corporate Planning lntergovernmental Affairs 399,574 505,331 143.151
341,920 400,909
347,727
401,562
40,715 504,665
132,41
408,140
Corporate Communications
521,346
1,569,402 1,293,410
Common Services
City Hall Building Property Assessment Public Liability lnsurance
1,294,669
1,766,204
1,6gl,gg5
1,244,474
596,597 3.522.966
1,506,789 1,182,640 603,343 3.292.772
1,24,474
633,605
3,644.283
Other
Common Clerk Human Resources
Finance City Solicitor Materials Management 813,130 1,289,937 1,861,641 823,759 ,l,082,953 763,695
870,1 10
1,272,42
1,622,342
913,597
1,305,278
1,606,311
804,567 1,262,936 1,985,919
1,095,24
1,999,163
lnformation Systems and Support

Debt Charges
1,946,235
29,900,427
21,790,529
5,653,140
17,U4,769
4,897,983 1,905,544 10,000 1,937,778
Amortization General Government Services Trust Funds Other
14,674,14
1,74,007
34
The City of Saint John Notes to the Gonsolidated Financiat Statements


2012
2012
Budget (Unaudited)
$
$
2011
37,719,092 51,527,303
Protective seruices Police Protection
Police Operations Support Services Administration
Stations and Buildings
33,931,195
1{,697,766
{ 1,969,612
12,410,819
2,459,339
2,il1,207
1,991,922
1,273,7OO
2,359,495
2,034,362
1,373,979 4,294,925 549,937
2,327,436 1,204,676 4,28s,392

521,690
Criminal lnvestigation Automotive
4,216,914 1,022,756
22,724,065 22,471,100
Fire Protection
Fire Operations
23,209,952
18,294,264 2,292,610
17,864,379
18,999,116
Emergency Dispatch Centre

Fire Administration Fire lnvestigation Fire Prevention Fire Traini
9{6,197
20,600
919,761 489,451
2,199,010 517,037 12,209 717,177

403,153
2,237,499
680,107 6,056 943,417
433,972
Other protective services

lnspection Services Enforcement Services Minimum Standards Dangerous Buildings AnimalControl Emergency Measures 960,142
168,343 269,646 137,341
932,297
157,933
1,037,042 642,918
263,565
4lg,4g3
67,217 159,367 193,343 2,032,670
80,315 334,304
167,604
1,950,091 2,007,099
35

28. Revenue and expense support lConfdl

2012
2012
2011
Budget (Unaudited)
$ $
$
Transportation services Public works

Roads and Sidewalks Other Drainage Services Street Lighting Municipal Operations
14,478,349 2,264,138
1,070,000 372,287
10,959,591 1,943,939
11,963,251
2,004,941
955,849 307,776
1,027,149 316,753
12,359,549
Amortization-Transportation
18,184,774
12,26s.290 27.497.107
26,404,979
1,417,zil
306,290
Fleet
Maintenance and Repair Fleet Administration 1,231,969
1,411,653
5M,932
1.996.585
1,23{,969
General engineering Transportation Traffic Engineering and Systems
459,351 1,620,139
1,723,%
1g9,g66 1,539,570
224,643
1,589,190 1.813.833
2,079,489
1,729.436
Parking Administration
Parking Administration 530,845 530,845
rl80,8l9
480,819
517,680 517.680
External controlled entities

Saint John Transit Parking
10,701,519 12,295,904
13,296,964 1,915,934
2,008,346 1,637,900
36

28. Revenue and expense support [Gont'dl

2012
2012
2011
Budget (Unaudited)
$ $ $
Water and sewer Seruices
Saint John water & wastewater

Drinking Water 8,374,000
1,4A2,OOO
6,797,504 1,356,440
7,080,024
1,320,567
lndustrialWater
Wastewater lnfrastructure Management lnternalCharges FiscalCharges Amortization
9,015,000
6,270,012
623,261 538,360 5,2O2,256 t 1,091,989
6,U2,700
900,834 663,585 4,381,766 9,666,907 30,356,393
{,306,000
509,000
16,28{,556
Total water and sewer

Sanitary Service
services
services
36,887,5s6 31,g79,922
3,965,640 3,589,905
Environmental health services

3,984,762
3,994,762
Total environmental health
3,965,640 3,sg9,90s
Environmental development services

Research and planning Community Planning
Plan SJ
1,291,462 201,820
1,059,661 35,109
1,160,906 315,963
GlS
Carpenter Shop
285,314 466,996
294,742 333,906
300,633
281,320
Economic development
Growth Strategy
Market Square Common Area Regional Economic Development Regional Facilities Saint John lndustrial Parks 10,000 2,088,939 332,000 25,000
2,U2,009
332,000 657,045
1,865,447 400,567 643,863
1,572,019
300,000
37

28. Revenue and expense support [Gont'dt

2012
2012
Budget (Unaudited)
$
2011
Real estate management Property Management
997,856 397,986
907,363
977,352 322,206
1,299,559
RealEstate
323,444
{,395,942 1,230,907
Other environmental development services
City Market Tourism 906,292 845,000 319,192
930,234 850,595 210,134
814,688 889,476 378,580
Community Development
Saint John Development Corporation Harbour Station Commission
1,062,033
{,761,993
3,764,560
1,486,917
3,193,822
2,397,936 766,094 3,269,920 414,600
3,749,404 2,174,103 731,760

2,629,955 873,447
Aquatic Centre Commission

Trade and Convention Centre Non Profit Housing Saint John lndustrial Parks
2,229,515 767,675
2,540,693
259,213
Recreational and cultural seryices Cultural grants

Cherry Brook Zoo Other Cultural Grants 60,035 1,569,117 60,070 60,035
874,293
1,189,220 1,249,255
1,629,152 934,353
Parks
Rochryood Park Parks GeneralServices
413,202 1,671,759 2,094,96{
420,262
462,547 1,684,661
1,657,43
2.077.705
2.147.208
38


2012
2012
2011
Budget (Unaudited)
$ $ $
Community seryices
Parks and playgrounds Recreation and 331,856 314,663 98,673
74,212
262,097
pa*s
Pro Kids
86,M9
96,708
Other recreational and culture seruices

Sports and Recreation Community Centres CulturalAffairs Amortization - Recreation 2,829,691
915,460 2,966,765 838,941 2,935,147
1,217AU
87,549 712,163 4,952,323
111,049
94,230
852,809
3,956,199 4,652,645
Externa! Controlled Entities
Lord Beaverbrook Saint John Free Public Library
376,680 456,230
355,803 554,699
353,518 570,581 924.099
Total recreational and Energy services

Energy services
9,369.593
130,312
TOTAL
EXPENDITURES
197,004,559 211,575,277
198,438,037
39

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The City of Saint John

Consolidated Financial Statements

The City of Saint John

Consolidated Financial Statements Auditors'Report

Independent Auditor's Report

Management's Responsibitity for the Consolidated Financial Statements

Membre de / Member of Deloitte Touche Tohmatsu Limited

The City of Saint John Consolidated Statement of Financial position

December 31, December 31, 2012 2011 (Note 2)

4,673,020 26,302,672 57,728,154

7,826,679 37,191,054 s7,858,466 6,131.250

6,826,261 28,855,135 57,641,s06 125.043

, Chair of Finance Committee

The Gity of Saint John

consolidated statement of operations and Accumulated surptus

Revenues Propeily taxes

114,504,447 19,203,728 23,057,791 33,667,000

Water and sewer services

The City of Saint John Consolidated Statement of Changes in Net Debt

Net debt, beginning of year

The City of Saint John Consolidated Statement of Cash FIows

ltems not involving cash

Accrued pension liability (Note

Other post employment liabilities (Note

lnventory Prepaids Deferred expenses

tl,4S3,SOl 62,g11 8,020 (179,700)

Net increase (decreases) in cash and cash equivalents

The Gity of Saint John Notes to the Consolidated Financiat Statements

Purpose of the organization

Change in accounting framework

the recommendations of PS 2125, the City:

type of asset or liability under the new standards; and

The City of Saint John Notes to the Consolidated Financial Statements

Change in accounting framework [Cont.dt

Adjustments to annual surplus (deficit)

As restated at December 31,

See Note 23 for the reconciliation of accumulated surplus (deficit).

for active employees.

The City of Saint John Notes to the Consolidated Financial Statements

Summary of significant accounting policies

lnterdepartmental and organizationaltransactions and balances are eliminated.

The City of Saint John Notes to the Gonsolidated Financiat Statements

Summary of significant accounting policies [Cont.d] Reporting entity [Cont'd]

12. 13. 14. 15. 16. 17.

The City of Saint John Notes to the Consolidated Financial Statements

Summary of significant accounting policies [Gont.dt

Gash and cash equivalents

Tangible capital assets

The City of Saint John Notes to the Gonsolidated Financial Statements

Summary of significant accounting policies [Cont,d] Tangible capita! assets [Cont'd]

Are not intended for sale in the ordinary course of operations.

nformation technology equipment and software

Water and wastewater networks

The City of Saint John Notes to the Consolidated Financial Statements

Summary of significant accounting policies [Gont'd] Segmented information [Cont'd]

Environmental health services

Recreation and cultural services

The City of Saint John Notes to the Consolidated Financial Statements

Summary of significant accounting policies [Cont,d] Post employment benefits

Bank loan payable

185,500 6,355 63,946

Airspace 2049 fund

The City of Saint John Notes to the Gonsolidated Financial Statements

Due from the federal government and its agencies