2021 Financial Statements

City of Portage la Prairie

Consolidated Financial Statements

For the Year Ended December 31, 2021

INDEPENDENT AUDITOR'S REPORT

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Responsibilities of Management and Those Charged with Governance for the Consolidated

Financial Statements

Management is responsible for the preparation and fair presentation of the 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.

In preparing the consolidated financial statements, management is responsible for assessing the City's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and

using the going concern basis of accounting unless management either intends to liquidate the City to

cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the City's financial reporting process.

To the Mayor and Council of the

City of Portage la Prairie

Report on the Audit of the Consolidated Financial Statements

We have audited the consolidated financial statements of the City of Portage la Prairie (the "City"), which

comprise the consolidated statement of financial position as at December 31, 2021, and the consolidated

statements of operations, change in net financial assets, cash flows and supporting schedules for the

year then ended, and notes to the consolidated financial statements, including a summary of significant

accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,

the consolidated financial position of the City at December 31, 2021, and the results of its consolidated

operations, change in net financial assets, cash flows and supporting schedules for the year then ended

in accordance with Canadian Public Sector Accounting Standards.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our

responsibilities under those standards are further described in the Auditor's responsibilities for the Audit

of the consolidated financial statements section of our report. We are independent of the City in

accordance with the ethical requirements that are relevant to our audit of the consolidated financial

statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these

requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

Restated Comparative Information

Without modifying our opinion we draw attention to Note 24 of the consolidated financial statements,

which describes that certain comparative financial information presented for the year ended December

31, 2020 have been restated.

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards

will always detect a material misstatement when it exists. Misstatements can arise from fraud or error

and are considered material if, individually or in the aggregate, they could reasonably be expected to

influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise

professional judgement and maintain professional skepticism throughout the audit. We also:

Tel: 204 727 0671 BDO Canada LLP

Fax: 204 726 4580 148 – 10

Street

Toll Free: 800 775 3328 Brandon MB R7A 4E6 Canada

www.bdo.ca

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO international Limited, a UK Company limited by guarantee, and forms part of the

international BDO network of independent member firms.

Chartered Professional Accountants

Brandon, Manitoba

June 14, 2022

Identify and assess the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error, design and perform audit procedures responsive to those risks, and

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of

not detecting a material misstatement resulting from fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

internal control.

Obtain an understanding of internal control relevant to the audit 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 City’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

We communicate with those charged with governance regarding, among other matters, the planned

scope and timing of the audit and significant audit findings, including any significant deficiencies in

internal control that we identify during our audit.

Conclude on the appropriateness of management's use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the City’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our Auditor's report to

the related disclosures in the consolidated financial statements or, if such disclosures are inadequate,

to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our

Auditor's report. However, future events or conditions may cause the City to cease to continue as a

going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements,

including the disclosures, and whether the consolidated financial statements represent the underlying

transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the City to express an opinion on the consolidated financial statements. We

are responsible for the direction, supervision, and performance of the group audit. We remain solely

responsible for the audit opinion.

City of Portage la Prairie

Consolidated Financial Statements

For the Year Ended December 31, 2021

Consolidated Statement of Financial Position

Consolidated Statement of Operations

Consolidated Statement of Change in Net Financial Assets

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Schedule 1 - Consolidated Schedule of Tangible Capital Assets

Schedule 2 - Consolidated Schedule of Revenues

Schedule 3 - Consolidated Schedule of Expenses

Schedule 4 - Consolidated Statement of Operations by Program

Schedule 5 - Consolidated Details and Reconciliation to Core Government Results

Schedule 6 - Schedule of Change in Reserve Fund Balances

Schedule 7 - Schedule of L.U.D. Operations

Schedule 8 - Schedule of Financial Position for Utilities

Schedule 9 - Schedule of Utility Operations

Schedule 10 - Reconciliation of the Financial Plan to the Budget

Schedule 11 - Analysis of Taxes on Roll

Schedule 12 - Analysis of Tax Levy

Schedule 13 - Schedule of General Operating Fund Expenses

Schedule 14 - Reconciliation of Annual Surplus (Deficit)

City of Portage la Prairie

CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended December 31, 2021

2021

2020

Budget

Actual

(Note 16)

(Restated -

Note 26)

REVENUE

Property taxes

11,374,776

11,549,155

11,653,932

Grants in lieu of taxation

838,680

838,674

873,480

User fees

3,315,270

3,536,420

3,897,181

Permits, licences and fines

333,375

561,847

395,047

Investment income

178,759

864,829

788,215

Other revenue

1,108,554

1,577,361

830,846

Water and sewer

12,837,925

26,505,509

12,947,897

Grants - Province of Manitoba

3,559,964

10,567,600

4,275,308

Grants - other

1,712,167

2,332,424

1,716,258

Total revenue (Schedules 2, 4 and 5)

35,259,470

58,333,819

37,378,164

EXPENSES

General government services

2,632,560

2,731,480

2,198,201

Protective services

6,406,507

6,886,877

6,413,016

Transportation services

3,139,169

2,360,255

2,312,082

Environmental health services

1,328,697

1,268,400

1,251,754

Public health and welfare services

331,704

227,134

253,928

Regional planning and development

765,020

641,663

754,269

Resource conservation and industrial

development

1,373,125

225,165

227,042

Recreation and cultural services

6,040,827

5,620,166

5,541,958

Water and sewer services

8,601,599

8,687,037

8,317,220

Total expenses (Schedules 3, 4 and 5)

30,619,209

28,648,177

27,269,470

ANNUAL SURPLUS (DEFICIT)

4,640,261

29,685,642

10,108,694

ACCUMULATED SURPLUS, BEGINNING OF YEAR

159,293,455

149,683,199

(as previously reported)

Prior Period Adjustment (Note 26)

(498,438)

ACCUMULATED SURPLUS, BEGINNING OF YEAR

159,293,455

149,184,761

(Restated)

ACCUMULATED SURPLUS, END OF YEAR

188,979,097

159,293,455

The accompanying notes and schedules are an integral part of this financial statement

City of Portage la Prairie

CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS

For the Year Ended December 31, 2021

2021

2020

Budget Actual Actual

(Note 17)

(Restated -

Note 26)

ANNUAL SURPLUS (DEFICIT) 4,640,261$ 29,685,642$ 10,108,694$

Acquisition of tangible capital assets (17,738,537) (17,578,449) (8,905,601)

Amortization of tangible capital assets - 4,040,248 3,746,534

Loss (Gain) on sale of tangible capital assets - 278,810 (549,356)

Proceeds on sale of tangible capital assets - 46,586 768,830

Decrease (increase) in inventories - (881) (57,283)

Decrease (increase) in prepaid expense - 280,031 (221,905)

(17,738,537) (12,933,654) (5,218,781)

CHANGE IN NET FINANCIAL ASSETS

(13,098,276)

16,751,987

4,889,913

Prior Period Adjustment - (498,438)

NET FINANCIAL ASSETS, BEGINNING OF YEAR 41,491,135 37,099,660

NET FINANCIAL ASSETS, END OF YEAR

58,243,122

41,491,135

The accompanying notes and schedules are an integral part of this financial statement

City of Portage la Prairie

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2021

2021 2020

(Restated -

Note 26)

OPERATING TRANSACTIONS

Annual surplus (deficit) 29,685,642$ 10,108,694$

Changes in non-cash items:

Amounts receivable (8,484,221) 1,038,553

Inventories (881) (55,730)

Prepaids 280,031 (221,905)

Other assets

Accounts payable and accrued liabilities 956,805 792,355

Severance and sick leave payable -

Unearned revenue 554,813 135,827

Landfill closure and post closure liabilities 23,264 51,543

Environmental liabilities -

Other liabilities -

Loss (Gain) on sale of tangible capital asset 278,810 (549,356)

Amortization 4,040,248 3,746,534

Cash provided by operating transactions 27,334,511 15,046,515

CAPITAL TRANSACTIONS

Proceeds on sale of tangible capital assets 46,586 768,830

Cash used to acquire tangible capital assets (17,578,449) (8,905,601)

Cash applied to capital transactions (17,531,863) (8,136,771)

INVESTING TRANSACTIONS

Proceeds on sale of portfolio investments (148,136) 3,017,934

Proceeds on sale of real estate properties - -

Loans and advances repaid - -

Purchase of portfolio investments - -

Acquisition of real estate properties - -

Loans and advances issued - -

Cash applied to investing transactions (148,136) 3,017,934

FINANCING TRANSACTIONS

Net (repayments) borrowings from revolving line of credit - -

Proceeds of long-term debt 3,000,127 -

Debt repayment (1,267,260) (1,203,571)

Obligation under capital lease (527) (1,725)

Repayment of obligation under capital lease - -

Cash applied to financing transactions 1,732,341 (1,205,296)

INCREASE IN CASH AND TEMPORARY INVESTMENTS 11,386,853 8,722,382

CASH AND TEMPORARY INVESTMENTS, BEGINNING OF YEAR 49,750,254 41,027,872

CASH AND TEMPORARY INVESTMENTS, END OF YEAR

61,137,107

49,750,254

The accompanying notes are an integral part of this financial statement

City of Portage la Prairie

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Year Ended December 31, 2021

Status of the City of Portage la Prairie

Significant Accounting Policies

a) Reporting Entity

Portage Handivan Inc.

- provides Handivan services to the residents of the City

Portage la Prairie Planning District (66.67%) (2020 - 66.67%)

- provides development and sub-division planning services to the residents of the City.

Portage la Prairie Regional Landfill Authority (66.67%) (2020 - 66.67%)

- provides waste disposal services to the residents of the City

Portage la Prairie Regional Library (77.00%) (2020 - 77.00%)

- provides library services to the residents of the City

Portage Regional Recreation Authority Inc. (75.00%) (2020 - 75.00%)

- provides recreational, health and wellness services to the residents of the City

Portage Regional Economic Development (66.67%) (2020 - 66.67%)

- provides tourism, advertising and economic development services for the City

b) Basis of Accounting

c) Cash and Temporary Investments

d) Investments

e) Real Estate Properties Held for Sale

The consolidated financial statements include the assets, liabilities, revenues and expenses of the reporting entity. The

reporting entity is comprised of all the funds, agencies, local boards, and committees of the Council which are controlled by

the City. Control is defined as the power to govern the financial and reporting policies of another organization with the

expected benefits or risk of loss to the City. The controlled organizations are consolidated after adjusting their accounting

policies to a basis consistent with the accounting policies of the City. Inter-fund and inter-company balances and transactions

have been eliminated. The controlled organizations include:

It is reasonably anticipated that real estate properties held for resale will be sold outside the reporting entity within one year

of the balance sheet date.

The City has several partnership agreements in place, and as such, consistent with Canadian Public Sector Accounting

Standards for government partnerships, the following local agencies, boards and commissions are accounted on a

proportionate consolidation basis whereby the City’s pro-rata share of each of the assets, liabilities, revenues and expenses

are combined on a line by line basis in the financial statements. Inter-company balances and transactions have been

eliminated. The government partnerships include:

Trust funds and their related operations administered by the City are not consolidated in these consolidated financial

statements.

The taxation with respect to the operations of the school divisions are not reflected in the Municipal surplus of these

consolidated financial statements.

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

records revenue as it is earned and measurable. Expenses are recognized as they are incurred and measurable based upon

the receipt of goods and services or the creation of an obligation to pay.

Cash and temporary investments include cash and short-term investments with maturities of three months or less from the

date of acquisition.

Real estate properties held for sale are recorded at the lower of cost and net realizable value. Cost includes the amount of

acquisition, legal fees, and improvements to prepare the properties for sale or servicing.

Temporary investments are accounted for at the lower of cost and market.

Portfolio investments are accounted for at cost.

The incorporated City of Portage la Prairie (the "City") is a City that was created in 1907 pursuant to The Municipal Act. The

City provides or funds municipal services such as police, fire, public works, planning, airport, parks and recreation, library

and other general government operations. The City also owns one utility, has several designated special purpose reserves

and provides funding support for other financial entities involved in economic development, recreation and tourism.

The consolidated financial statements have been prepared in accordance with public sector accounting standards as

recommended by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada and

reflect the following significant accounting policies:

f) Landfill Closure and Post Closure Liabilities

g) Non-Financial Assets

h) Tangible Capital Assets

General Tangible Capital Assets

Land Indefinite

Land Improvements 10 to 30 years

Buildings and leasehold improvements

Buildings 25 to 40 years

Leasehold improvements Life of lease

Vehicles and Equipment

Vehicles 5 years

Machinery, equipment and furniture 10 years

Maintenance and road construction equipment 15 years

Computer Hardware and Software 4 years

Infrastructure Assets

Transportation

Land Indefinite

Road surface 20 to 30 years

Road grade 40 years

Bridges 25 to 50 years

Traffic lights and equipment 10 years

Water and Sewer

Land Indefinite

Land improvements 30 to 50 years

Buildings 25 to 40 years

Underground networks 40 to 60 years

Machinery and equipment 10 to 20 years

Dams and other surface water structures 40 to 60 years

i) Leases

j) Inventories

Certain assets which have historical or cultural value including works of art, historical documents as well as historical and

cultural artifacts are not recognized as tangible capital assets because a reasonable estimate of the future benefits

associated with such property cannot be made. Intangibles, Crown lands that have not been purchased by the City, forests,

water, and other natural resources are not recognized as tangible capital assets.

The estimated cost to close and maintain solid waste landfill sites are based on estimated future expenses, in current dollars,

adjusted for estimated inflation, and are charged to expenses as the landfill capacity is used.

Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They

have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. The

change in non-financial assets during the year, together with the excess of revenues over expenses, provides the change in

net financial assets (debt) for the year.

Real estate properties and inventories held for sale are classified as non-financial assets if it is anticipated that the sale will

not be completed within one year of the reporting date.

Tangible capital assets are recorded at cost which includes all amounts that are directly attributable to the acquisition,

construction, development or betterment of the asset. Donated assets are recorded at their estimated fair value upon

acquisition. Certain tangible capital assets for which historical cost information was not available have been recorded at

current fair market value at the determination date discounted by a relevant inflation factor. Certain assets are reported at a

nominal value as the determination of current fair market value was not available. The City does not capitalize internal

finance charges as part of the cost of its tangible capital assets.

Inventories held for sale are recorded at the lower of cost and net realizable value.

Inventories held for consumption are recorded at the lower of cost and replacement value.

Leases are classified as capital or operating leases. Leases which transfer substantially all of the benefits and risks

incidental to the ownership or property are accounted for as capital leases. All other leases are accounted for as operating

leases and the related lease payments are charged to expenses as incurred.

k) Revenue Recognition

l) Measurement Uncertainty

Cash and Temporary Investments

2021

2020

Cash

61,137,107

49,750,254$

Temporary investments

61,137,107$ 49,750,254$

Amounts Receivable

2021

2020

Taxes on roll (Schedule 11)

1,105,286

1,212,367$

Government grants

3,017

205,365

Utility customers

3,475,655

2,299,477

Organizations and individuals

8,493,092

1,160,849

Other governments

528,385

268,191

13,605,435

5,146,249

Less allowances for doubtful amounts

(76,400)

(101,435)

13,529,035$

5,044,814$

Interest revenue is recognized when earned on the related investment balance.

Water and sewer revenue, permits, fees, fines and user fees are recognized when the related goods or service are provided

to the customer and collection is reasonably assured.

Unearned revenue represents user charges and other fees which have been collected, for which the related services have

yet to be provided. These amounts will be recognized as revenue in the fiscal year the services are provided.

Cash and temporary investments are comprised of the following:

Temporary investments are comprised mainly of guaranteed investment certificates and term deposits and have a market

value approximating cost. The City has designated $50,276,433 (2020 - $40,252,758) to reserves for debt principal

repayments and tangible capital asset acquisitions. See Schedule 6 – Schedule of Change in Reserve Fund Balances.

Amounts receivable are valued at their net realizable value.

Government transfers are recognized in the consolidated financial statements when the transfer is authorized and eligibility

criteria are met except, when and to the extent, stipulations by the transferor gives rise to an obligation that meets the

definition of a liability. Stipulations by the transferor may require that the funds only be used for providing specific services or

the acquisition of tangible capital assets. For transfers with stipulations an equivalent amount of revenue is recognized as the

liability is settled.

Taxes are recorded at estimated amounts when they meet the definition of an asset, have been authorized and the taxable

event occurs. For property taxes, the taxable event is the period for which the tax is levied. As taxes recorded are initially

based on management’s best estimate of the taxes that will be received, it is possible that changes in future conditions, such

as reassessments due to audits, appeals and court decisions, could result in a change in the amount of tax revenue

recognized. Taxes receivable are recognized net of an allowance for anticipated uncollectable amounts.

Estimates are used to accrue revenues and expenses in circumstances where the actual accrued amounts are unknown at

the time the consolidated financial statements are prepared. Uncertainty in the determination of the amount at which an item

is recognized in the consolidated financial statements is known as measurement uncertainty. Such uncertainty exists when

there is a variance between the recognized amount and another reasonable possible amount, as there is whenever

estimates are used.

Measurement uncertainty in these consolidated financial statements exists in the accrual of the landfill closure and post

closure liabilities. The accrual of the landfill liabilities is based on estimated future cash flows discounted to the consolidated

financial statement date. The estimate of the future cash flows and the closure date of the landfill are based upon the best

estimates by management. The actual future cash flows and closure date may differ significantly.

Revenues are recognized as they are earned and measurable.

Portfolio Investments

2021

2020

Guaranteed investment certificate and term deposits

267,084$

118,948$

Inventories

Inventories for sale:

2021

2020

Food and beverages

255$

Inventories for use:

2021

2020

Chemicals, herbicides, insecticides

302,102

283,258$

Fuel

13,688

24,381

Other supplies

47,964

55,234

363,754$ 362,873$

Accounts Payable and Accrued Liabilities

2021

2020

Accounts payable

2,307,781

2,549,725$

Accrued expenses

1,827,810

1,806,903

Accrued interest payable

134,306

173,242

School levies

Other governments

3,776,120

2,569,587

Due to trusts

145,875

135,555

8,191,892$

7,235,087$

Landfill Closure and Post Closure Liabilities

a) Operating Landfill Site

2021

2020

276,014$ 226,011$

Discount rate

5.25%

Discounted costs

120,223

99,926$

Expected year capacity will be reached

2024

Capacity ( disclose in tonnes, volume, acreage, or years):

Used to date

926,000

883,000

Remaining

108,000

151,000

Total

1,034,000

Percent utilized

90%

85%

Liability based on percentage 108,201$

84,937$

Estimated closure and post closure costs over the

next 3 years (2020 - 4 years)

The aggregate market value of the marketable securities at December 31, 2021 is $267,084 (2020 - $118,948). Portfolio

investments earned $4,140 in investment income during the year (2020 - $32,945).

The City is currently operating a Class 1 landfill site in through the Portage la Prairie Regional Landfill Authority. Legislation

requires closure and post-closure care of solid waste landfill sites. Closure costs include final covering and landscaping of

the landfill and implementation of drainage and gas management plans. Post closure care requirements include cap

maintenance, groundwater monitoring, gas management system operations, inspections and annual reports.

10.

Long Term Debt

2021

2020

General Authority:

1,881,483$ 2,444,419$

806,350 1,047,608

558,724 680,687

518,121 631,911

393,767 511,582

69,083 84,255

34,920 42,543

34,541 42,128

22,847 29,682

43,666 61,288

8,123 14,202

1,000,000 -

2,000,127 -

- 18,752

- 7,032

7,475,754

5,742,887$

Debenture, interest at 5.500%, payable at $697,379 annually including interest,

maturing 2024

Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic or

radioactive material or live organism that exceeds an environmental standard. The liability is recorded net of any expected

recoveries. A liability for remediation of contaminated sites is recognized when all the following criteria are met:

i. an environmental standard exists;

ii. contamination exceeds the environmental standard;

iii. The City:

- is directly responsible; or

- accepts responsibility; and

iv. a reasonable estimate of the amount can be made.

Liability for Contaminated Sites

The City has no liabilities for contaminated sites.

Debenture, interest at 5.500%, payable at $159,400 annually including interest,

maturing 2025

Debenture, interest at 5.250%, payable at $146,966 annually including interest,

maturing 2025

Debenture, interest at 5.500%, payable at $145,952 annually including interest,

maturing 2024

Debenture, interest at 5.500%, payable at $298,877 annually including interest,

maturing 2024

Debenture, interest at 5.250%, payable at $19,595 annually including interest, maturing

2025

Debenture, interest at 5.250%, payable at $19,595 annually including interest, maturing

2025

Debenture, interest at 5.500%, payable at $9,963 annually including interest, maturing

2025

Loan payable, interest at 5.000%, payable at $1,685 monthly including interest,

maturing 2024

Loan payable, interest at 4.890%, payable at $554 monthly including interest, maturing

2023

Debenture, interest at 1.950%, payable at $616,000 annually including interest,

maturing 2023

Debenture, interest at 2.600%, payable at $170,860 annually including interest,

maturing 2036

Debenture, interest at 5.500%, payable at $9,963 annually including interest, maturing

2025

Debenture, interest at 5.250%, payable at $9,798 annually including interest, maturing

2025

Debenture, interest at 5.500%, payable at $8,468 annually including interest, maturing

2024

Debenture, interest at 5.375%, payable at $19,760 annually including interest, repaid in

the year

Debenture, interest at 5.375%, payable at $7,410 annually including interest, repaid in

the year

10.

Long Term Debt Continued

Principal payments required in each of the next five years and thereafter are as follows:

2,022,018$

1,898,562$

1,556,816$

481,723$

128,830$

Thereafter 1,387,805$

7,475,754$

11.

Commitments

12.

Contingencies

13.

Retirement Benefits

During the year correspondence was received from the RCMP quantifying the value of backpay owing by the City, related to

their contracted police services. The liability has been recorded at its estimated value however due to ongoing discussions

and other uncertainties the final value of the payment required may differ from management's best estimate.

The majority of the employees of the City are members of the Municipal Employees' Pension Plan (MEPP), which is a multi-

employer defined benefit pension plan. MEPP members will receive benefits based on 1.5% of their final average yearly

Canada Pension Plan (CPP) earnings times years of service, plus 2% of their final average yearly non-CPP earnings times

years of service. The costs of the retirement plan are not allocated to the individual entities within the related group. As a

result, individual entities within the related group are not able to identify their share of the underlying assets and liabilities.

Therefore, the plan is accounted for as a defined contribution plan in accordance with the requirements of the Chartered

Professional Accountants of Canada Handbook section PS3250.

2022

2023

2024

2025

2026

The City has a contract for janitorial services of approximately $161,920 for 1 year ending September 1, 2022.

The City is in the process of negotiating a P3 project with the Federal and Provincial governments and various private

industry partners to fund upgrades to the wastewater plant in order to improve higher standards for the management of

effluent discharge. The agreement terms have not yet been finalized as of the financial statement date and discussions are

ongoing.

The City has a contract for external audit services for 1 year ending December 31, 2022.

The City has a contract for a partnership funding agreement in respect of Portage Regional Economic Development to fund

operating costs and IT services for 3 years ending December 31, 2024. The total value of the commitment is unknown until

such time as the operating costs are incurred.

The City has a contract for banking services agreement for 2 years ending December 31, 2023.

The City has a contract for by-law, parking and animal control enforcement agreement of approximately $257,220 for 2 years

ending July 2023.

The City has a contract for the collection of residential solid waste of approximately $1,574,134 for the period of August 1,

2019 to July 31, 2022.

The City has a contract for the provision of SCADA and PLC maintenance services for 1 year ending November 30, 2022.

The City has a contract for building maintenance services for 1 year ending November 30, 2022.

The City has a contract for the maintenance of green areas of approximately $438,079 for 2 years ending October 31, 2023.

The City has a contract for by-law enforcement services of approximately $111,090 for 2 years ending July 30, 2023.

The City has a contract for cell phone services for 3 years ending October 30, 2024.

14.

Financial Instruments

15.

Subsequent Events

16.

Budget

17.

Accumulated Surplus

2021

2020

(Restated -

Note 26)

8,970,183

1,531,017$

3,195,934

3,350,287

120,079,737

108,592,836

Reserve funds (Schedule 6)

50,276,430

40,252,755

182,522,284

153,726,895

6,456,813

5,566,560

188,979,097

159,293,455

The financial plan is prepared on a revenue and expenditure basis. For comparative purposes, the City has modified its

financial plan to prepare a budget that is consistent with the scope and accounting principles used to report the actual

results. The budget figures used in these financial statements have been approved by Council.

Subject to the following paragraph, any unfunded liabilities are to be funded by the participating employers. The most recent

actuarial valuation as of December 31, 2019 indicated the plan was 99.7% funded on a going concern basis and had an

unfunded solvency liability of $288.8 million. The solvency position of the plan is determined by comparing the plan assets to

the actuarial present value of the benefits accrued in respect of credited service up to the valuation date, calculated as if the

plan were wound up on December 31, 2019.

Accumulated surpluses of consolidated entities

Pension assets consist of investment grade securities. Market and credit risk on these securities are managed by MEPP by

placing plan assets in trust and through MEPP investment policy. The pension expense is based on the contribution rate.

The MEPP required that employees contribute 8.3% of basic annual earnings up to the CPP ceiling plus 9.5% of basic

annual earnings in excess of the CPP ceiling, plus an additional 0.1% of earnings below and in excess of the CPP ceiling

from employees that are not members of the Municipal Disability Income Plan. The employers are required to match the

employee contributions to the MEPP. Actual contributions to MEPP made during the year by the City on behalf of its

employees are expected to be $613,652 (2020 - $597,658) and are included in the statement of operations.

In 2010, the Government of Manitoba enacted a regulation which permits sponsors of public sector pension plans, including

MEPP, to elect permanent exemption from solvency funding requirements subject to certain conditions stated in the

regulation. MEPP has elected permanent exemption from solvency funding requirements. As a result, solvency funding is no

longer required by MEPP.

The City as part of its operations carries a number of financial instruments. It is management’s opinion that the City is not

exposed to significant interest, currency or credit risk arising from these financial instruments, except as otherwise disclosed.

Unless otherwise noted, the fair value of these financial instruments approximates their carrying values.

Subsequent to the year-end, the City contracted a partnership organization servicing agreement for 3 years ending March

31, 2024.

Subsequent to the year-end, the City contracted for engineering services for Phase 1 of the Saskatchewan Ave West project.

Municipal Board approval for Phase 1 and 2 of the project have been received. Government grant funding approval is

pending.

Subsequent to the year-end, the City received Province of Manitoba funding approval for upgrade work at the Water Pollution

Control Plant.

General operating fund - Nominal surplus

Utility operating fund(s) - Nominal surplus

TCA net of related borrowings

The reconciliation between the financial plan and the budget figures used in these statements is disclosed in Schedule 10 -

Reconciliation of the Financial Plan to the Budget.

Accumulated surplus per Consolidated Statement of Financial Position

Accumulated surplus consists of the following:

Accumulated surplus of municipality unconsolidated

18.

Trust Funds

Balance, beg. of the year

Balance, end of

the year

Affordable Housing

-$ 1,139,055$ 1,139,055$

Bear Clan Donation - 3,764 3,764

Cemetery Perpetual Trust 335,732 13,676 349,408

Centennial Community Club Inc. 1,000 1,000 2,000

Central Park Surplus 98,995 1,516 100,511

DARE Program 1,056 19 1,075

Fire Equipment 13,710 1,005 14,715

Golf Island Park 6,921 (6,921) -

Heritage Committee Book Sales 6,900 1,996 8,896

Manitoba Hydro 46,424 1,074 47,498

Misc City Contributions - - -

Northeast Community Family Care 1,747 32 1,779

West-end Development Trust 23 1 24

Willow Bay Paving In Trust 4,676 85 4,761

517,184$ 1,156,303$ 1,673,487$

19.

Segmented Information

General Government

Protective Services

Transportation Services

Environmental Health

Resource conservation and industrial development includes the operations of Portage Regional Economic Development,

which is responsible for developing and marketing of the City, and tourism development.

Recreation and Cultural Services

Recreation and cultural services encompasses library and recreation authority operations to improve the health and

development of local citizens.

Water and Sewer Services

The City provides utility services to its residents in the form of sales of water and wastewater treatment. The department also

maintains the water and sewer utility, processing and cleaning sewage and ensuring the water and sewer systems meet all

provincial standards.

Revenues and expenses represent amounts that are directly attributable to the segment and amounts that are allocated on a

reasonable basis. The accounting policies of the segments are consistent with those followed in the preparation of the

consolidated financial statements as described in the summary of significant accounting policies.

General government relates to the revenue and expenses of the operations of the City itself that cannot be directly attributed

to a specific segment. General Government includes Council indemnities, administration, legal, audit, assessment, taxation,

elections, conventions, damage claims, liability insurance, and other government sundry.

Protection is comprised of fire protection, police contract, building inspection, emergency operations and animal control

services.

Transportation services is responsible for snow clearing, street cleaning and grading, dust abatement and maintenance of

boulevards and parks as well as street lights and drainage along municipal roads.

Environmental health includes services for waste disposal and pickup of materials for recycling.

Public Health and Welfare Services

Public health and welfare services provides social assistance to the residents of the City.

Regional Planning and Development

Regional planning and development includes operations of Portage la Prairie Planning District, which reviews development

plans and makes recommendations on subdivision applications.

Resources Conservation and Industrial Development

The City of Portage la Prairie administers the following trusts:

Excess

(deficiency) of

Receipts over

Disbursements

The City of Portage la Prairie is a diversified municipal government institution that provides a wide ranges of services to its

residents. Distinguishable functional segments have been separately disclosed in the segmented information. The nature of

the segments and the activities they encompass are as follows with detailed financial data presented in Schedule 4.

20.

Government Partnerships

2021

2020

Financial Position

Financial assets

5,171,535

3,905,597$

Financial liabilities

829,296

713,569

Net financial assets (liabilities)

4,342,239

3,192,028

Non-financial assets

1,958,112

2,241,839

Accumulated surplus 6,300,351 5,433,867

Result of Operations

Revenues

3,317,613

3,280,266

Expenses

2,451,129

2,318,625

Annual surplus 866,484$ 961,641$

21.

Contingent assets

(

PS 3320

)

22.

Related party disclosures

(PS 2200)

Disclosures of the contingent assets should include the nature, including a description of the circumstances giving rise to the

uncertainty and information about the anticipated resolution of the uncertainty; the extent, including an estimate of the

amount or a range of passible amounts; the reason(s), if the extent can’t be disclosed; and the basis for the estimate.

• The transaction has or could have a material financial effect on the consolidated financial statements.

As per PS 2200.17, the City should disclose the following where transaction meets the requirements for disclosure.

The City has several partnership agreements for municipal services. The consolidated financial statements include the City's

proportionate interest, as disclosed in note 2(a). The aggregate financial statements of the government partnerships, in

condensed summary, are as follows:

• A transaction occurs between related parties at a value different from that which would have been arrived at if the

parties were unrelated; and

• Adequate information about the nature of the relationship with related parties involved in related party transactions;

Contingent assets are possible assets arising from existing conditions or situations involving uncertainty. That uncertainty will

ultimately be resolved when one or more future events not wholly within the public sector entity’s control occurs or fails to

occur. Resolution of the uncertainty will confirm the existence or non-existence of an asset (PS 3320.03).

The existence of a contingent asset at the date of the consolidated financial statements must be disclosed when the

occurrence of the confirming future event is likely, respecting that the sensitivity or confidentiality of the information is to be

considered to avoid possible adverse effect.

The Portage Regional Recreation Authority Inc. was awarded a settlement for the repairs required on the roof replacement,

dehumidifier system and ensuring the steel beams are up to code of the Shindleman Aquatic Centre in conjunction with the

City of Portage la Prairie and the Rural Municipality of Portage la Prairie. The portion of the settlement related to the

consolidated entity has been reflected as other income in the consolidated financial statements.

A related party exists when one party has the ability to exercise control or shared control over the other. Two or more parties

are related when they are subject to common control or shared control. Related parties also include key management

personnel and close family members and the entities they control.

Related Party Transactions are transfer of economic resources or obligations between related parties, or the provision of

services by one party to a related party. These transfers are related party transactions whether or not there is an exchange

of considerations or transactions have been given accounting recognition. The parties to the transaction are related prior to

the transaction. When the relationship arises as a result of the transaction, the transaction is not one between related

parties.

Determining which items to disclose is based on an assessment of the terms and conditions underlying the transactions, the

financial materiality of the transactions, relevance of the information to the decisions of users, and the need for the

information to enable users’ understanding of the consolidated financial statements and for making comparisons to other

entities.

Disclosure is generally required when:

• The types of related party transactions that have been recognized;

• The amounts of the transactions recognized classified by financial statement category;

• The basis of measurement used;

• The amount of outstanding balances and the terms and conditions attached to them;

• Contractual obligations with related parties, separate from other contractual obligations;

• Contingent liabilities involving related parties, separate from other contingent liabilities; and

• The types of related party transactions that have occurred for which no amount has been recognized.

23.

Public Utilities Board

Water services:

Unamortized Unamortized

Opening Additions Amortization Balance

Description of Utility Balance During Year During Year Ending

Air Release/Yellowquill

54,022$ -$ 1,102$ 52,920$

Industrial Park Watermain

384,979 - 8,555 376,424

Industrial Watermain & WTP

760,805 - 15,527 745,278

McKay Reservoir

282,827 - 11,091 271,736

Miscellaneous equipment

41,844 - 4,650 37,194

Water Study Pre-design

85,414 - 1,817 83,597

Water Supply Upgrades

778,027 - 16,554 761,473

Water Treatment Plant

1,734,433 - 44,473 1,689,960

Water Treatment Plant Upgrade

320,025 - 17,779 302,246

4,442,376$ -$ 121,548$ 4,320,828$

Sewer services:

Unamortized Unamortized

Opening Additions Amortization Balance

Description of Utility Balance During Year During Year Ending

Phase 1 WPCF (LRAR)

26,883,086$ -$ 545,849$ 26,337,237$

Phase 2 WPCF (LRAR)

710,064 3,500,000 - 4,210,064

Phase 2 WPCF (Plant Upgrade)

- 9,000,000 - 9,000,000

Sask Ave W Phase 1 Utility

- 1,401,264 - 1,401,264

SBR Lift Station

1,370,843 - 39,167 1,331,676

Wastewater Plant Study

101,700 - 2,164 99,536

29,065,693$ 13,901,264$ 587,180$ 42,379,777$

24.

Comparative Figures

25.

Financial Impact of COVID-19

26.

Prior Period Adjustment

Prior to Restatement Restatement

Balance

Restated

Accounts Payable 6,555,399$ 679,688$ 7,235,087$

Accumulated Surplus - Opening 149,683,199$ (498,438)$ 149,184,762$

Protective Services - Police 3,594,354$ 181,250$ 3,775,604$

For information purposes, the City has deferred the capital grants and/or contributed assets it has received in the past for its

utilities and amortized them over the useful life of the related tangible or contributed capital asset.

The Public Utilities Board (PUB) regulates the rates charged by all water and wastewater utilities, except the City of

Winnipeg Utility and wholesale water rates set by the Manitoba Water Services Board. The PUB has the authority to order

any owner of a utility to adopt uniform and prescribed accounting policies. The PUB’s prescribed accounting policies on

tangible or contributed capital assets and government transfers allow for adjustments to be made, for rate setting purposes,

which do not meet PSAB standards.

No capital grants have been deferred and amortized in these consolidated financial statements.

The following table provides historical information on capital grants for tangible or contributed capital assets with a remaining

Net Book Value.

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

During the fiscal year, the impact of COVID-19 in Canada and on the global economy increased significantly.COVID-19 has

had a significant impact on businesses through the restrictions put in place by the Canadian federal, provincial and municipal

governments regarding travel, business operations and isolation/quarantine orders. At this time, it is unknown the extent of

the impact of the COVID-19 outbreak may have on the City as this will depend on future developments that are highly

uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate

geographic spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business

closures or disruptions, and quarantine/isolation measures that are currently, or may be put, in place by Canada and other

countries to fight the virus.

During the year information was received in regards to contract settlement and required backpay related to police services

that the City contracts with the RCMP. This liability affects prior years and had not previously been accrued. Accordingly

payroll and accounts payable were understated. The impact of this adjustment has been reflected as described below for the

year ended December 31, 2020.

27.

Public-Private Partnerships

A public-private partnership ("P3s") is a contractual agreement between a public authority and a private entity for the

provision of infrastructure and/or services. The City's P3s are assessed based on the substance of the underlying agreement

and are accounted as follows:

Sources of funds used in finance the tangible capital assets and future payments are classified based on the nature of

the funds such as debt, grants and/or reserves.

Costs incurred during construction or acquisition are recognized in the work-in-progress and liability balances based on

the estimated percentage complete;

Construction costs, as well as the combined total of future payments, are recognized as a tangible capital asset and

amortized over the useful life once the asset is in service; and

City of Portage la Prairie

SCHEDULE 1

CONSOLIDATED SCHEDULE OF TANGIBLE CAPITAL ASSETS

Year Ended December 31, 2021

Buildings Computer

and

Vehicles

Hardware Asset Roads, Streets, Water Assets

Land and Land

Leasehold

and

Under

and

Under

Improvements

Equipment

Software

Construction

Bridges

Sewer

Construction

2021

2020

Cost

Opening costs

9,797,229

47,519,199

8,319,709

661,046

2,817,237

21,690,121

137,673,513

4,255,013

232,733,067

220,540,475

Additions during the year

586,706

65,460

1,059,632

68,880

7,399,757

480,836

3,501,867

6,289,345

19,452,484

43,271,336

Transfer during the year

Disposals and write downs

(340,017)

(154,062)

(472,374)

(63,278)

(554,095)

(88,277)

(1,319,940)

(2,992,044)

(31,078,719)

Closing costs

10,043,918

47,430,598

8,906,967

666,647

9,662,899

22,170,957

141,087,103

9,224,418

249,193,508

232,733,092

Accumulated Amortization

Opening accum'd amortization

3,948,604

15,820,612

4,495,822

550,796

3,909,694

87,459,187

116,184,714

112,459,529

Amortization

235,008

1,089,034

677,528

59,860

315,569

1,663,250

4,040,248

3,746,535

Disposals and write downs

(123,066)

(110,092)

(424,775)

(63,278)

(71,421)

(792,633)

(21,345)

Closing accum'd amortization

4,060,546

16,799,554

4,748,575

547,377

4,225,262

89,051,016

119,432,330

116,184,719

Net Book Value of

Tangible Capital Assets

5,983,372

30,631,044

4,158,392

119,270

9,662,899

17,945,695

52,036,087

9,224,418

129,761,177

116,548,373

The City has 107 km of roads that are capitalized at a nominal value of $1,920,487.

General Capital Assets Infrastructure Totals

City of Portage la Prairie

SCHEDULE 2

CONSOLIDATED SCHEDULE OF REVENUES

For the Year Ended December 31, 2021

2021

2020

Actual

Property taxes:

Municipal taxes levied (Schedule 12)

11,374,857

11,068,092

Taxes added

179,596

590,792

Taxes discount

(5,298)

(4,952)

11,549,155

11,653,932

Grants in lieu of taxation:

Federal government

44,783

46,655

Federal government enterprises

Provincial government

559,880

548,281

Provincial government enterprises

234,011

278,544

Other municipal governments

Non-government organizations

838,674

873,480

User fees

Parking meters

36,058

48,025

Sales of service

3,197,476

3,595,372

Sales of goods

134,169

91,652

Rentals

168,717

162,132

Development charges

Facility use fees

Other (specify):

3,536,420

3,897,181

Permits, licences and fines

Permits

134,596

130,258

Licences

275,745

105,668

Fees

151,506

159,121

Fines

Other (specify):

561,847

395,047

Investment income:

Cash and temporary investments

864,829

788,215

Marketable securities

Municipal debentures

Other (specify):

864,829

788,215

Other revenue:

Gain (loss) on sale of tangible capital assets

(293,954)

(1,116)

Gain on sale of real estate held for sale

550,472

Contributed assets

Penalties and interest

95,331

71,980

Miscellaneous (specify): lawsuit proceeds

1,775,984

209,510

Other (specify):

1,577,361

830,846

Water and sewer

Municipal utility(ies) (Schedule 9)

26,505,509

12,947,897

Consolidated water co-operatives

26,505,509

12,947,897

Grants - Province of Manitoba

Municipal operating grants

1,084,947

1,881,354

Other unconditional grants

Conditional grants

9,482,653

2,393,954

Other (specify):

10,567,600

4,275,308

Grants - other

Federal government - gas tax funding

1,464,497

715,976

Federal government - other

310,549

458,708

Other municipal governments

557,378

541,574

Other (specify):

2,332,424

1,716,258

Total revenue

58,333,819

37,378,164

City of Portage la Prairie

SCHEDULE 3

CONSOLIDATED SCHEDULE OF EXPENSES

For the Year Ended December 31, 2021

2021

2020

Actual

(Restated - Note 26)

General government services:

Legislative

260,410

265,121

General administrative

2,107,628

2,056,476

Other (specify):

363,442

(123,396)

2,731,480

2,198,201

Protective services:

Police

4,303,615

3,775,604

Fire

2,438,856

2,447,220

Emergency measures

77,984

120,961

Other (specify):

66,422

69,231

6,886,877

6,413,016

Transportation services:

Road transport

Administration and engineering

208,506

255,821

Road and street maintenance

1,752,229

1,679,944

Bridge maintenance

Sidewalk and boulevard maintenance

74,187

64,792

Street lighting

278,355

253,481

Other (specify):

Air transport

Public transit

46,978

58,044

Other (specify):

2,360,255

2,312,082

Environmental health services:

Waste collection and disposal

1,008,989

1,009,289

Recycling

259,411

242,465

Other (specify):

1,268,400

1,251,754

Public health and welfare services:

Public health

156,413

183,207

Medical care

Social assistance

70,721

Other (specify):

227,134

253,928

Regional planning and development

Planning and zoning

342,971

380,078

Urban renewal

Beautification and land rehabilitation

Urban area weed control

172,009

195,435

Other (specify):

126,683

178,756

641,663

754,269

Resource conservation and industrial development

Rural area weed control

Drainage of land

Veterinary services

Water resources and conservation

Regional development

208,899

162,825

Industrial development

4,336

68,711

Tourism

1,915

952

Other (specify):

10,015

(5,446)

225,165

227,042

Sub-totals forward

14,340,974

13,410,292

City of Portage la Prairie

SCHEDULE 3

CONSOLIDATED SCHEDULE OF EXPENSES

For the Year Ended December 31, 2021

2021

2020

Actual

(Restated - Note 26)

Sub-totals forward

14,340,974

13,410,292

Recreation and cultural services:

Administration

3,115,745

2,960,320

Community centers and halls

72,900

Swimming pools and beaches

Golf courses

Skating and curling rinks

6,040

5,449

Parks and playgrounds

479,062

441,141

Other recreational facilities

1,543,335

1,536,328

Museums

Libraries

323,617

466,070

Other cultural facilities

79,467

59,750

5,620,166

5,541,958

Water and sewer services

Municipal utility (Schedule 9)

8,687,037

8,317,220

Consolidated water co-operatives

8,687,037

8,317,220

Total expenses

28,648,177

27,269,470

City of Portage la Prairie

SCHEDULE 4

CONSOLIDATED STATEMENT OF OPERATIONS BY PROGRAM

For the Year Ended December 31, 2021

General

Protective

Transportation

Environmental Health

Public Health and

Government*

Services

Welfare Services

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

Property taxes 11,549,155$ 11,653,932$ -$ -$ -$ -$ -$ -$ -$ -$

Grants in lieu of taxation 838,674 873,480 - - - - - - - -

User fees

133,531

191,950

793,315

707,579

22,923

16,000

1,371,195

1,507,792

84,753

48,252

Grants - other - - - 1,503,099 756,031 - - - -

Permits, licences and fines

176,627

182,113

385,220

212,934

Investment income 826,070 756,212 - - 173 213 - - - -

Other revenue 707,078 790,736 278,935 - 268 549 3,944 3,507 - -

Water and sewer - - - - - - - - -

Prov of MB - Unconditional Grants 1,084,947 1,881,354 - - - - - - - -

Prov of MB - Conditional Grants 9,220,088 2,201,805 - - 54,046 43,887 - - - -

Total revenue 24,536,170$ 18,531,582$ 1,457,470$ 920,513$ 1,580,509$ 816,680$ 1,375,139$ 1,511,299$ 84,753$ 48,252$

EXPENSES

Personnel services

1,537,873

1,535,102

2,667,386

2,619,088

746,733

741,399

290,371

289,192

78,404

91,122

Contract services 279,723 213,680 3,782,825 3,286,137 70,400 14,456 689,295 685,775 84,411 84,574

Utilities 47,929 54,098 60,461 65,924 318,583 299,710 - - 5,822 6,069

Maintenance materials and supplies 322,140 201,398 156,637 175,006 564,851 502,966 80,007 85,754 50,537 69,276

Grants and contributions 255,005 240,475 1,674 1,912 (33,400) (28,000) 46,805 2,025 7,960 2,887

Amortization 47,252 46,120 202,555 203,870 685,607 779,137 122,268 122,914 - -

Interest on long term debt - - - - - - - - - -

Other

241,558

(92,672)

15,339

61,079

7,481

2,414

39,654

66,094

Total expenses

2,731,480

2,198,201

6,886,877

6,413,016

2,360,255

2,312,082

1,268,400

1,251,754

227,134

253,928

Surplus (Deficit)

21,804,690

16,333,381

(5,429,407)

(5,492,503)

(779,746)

(1,495,402)

106,739

259,545

(142,381)

(205,676)

* The general government category includes revenues and expenses that cannot be attributed to a particular sector.

REVENUE

City of Portage la Prairie

SCHEDULE 4

CONSOLIDATED STATEMENT OF OPERATIONS BY PROGRAM

For the Year Ended December 31, 2021

Regional Planning

Resource Conservation

Recreation and

Water and

and Development

and Industrial Dev

Cultural Services

Sewer Services

Total

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

Property taxes -$ -$ -$ -$ -$ -$ -$ -$ 11,549,155$ 11,653,932$

Grants in lieu of taxation - - - - - - - - 838,674 873,480

User fees

395,808

592,940

10,001

18,497

724,894

814,171

3,536,420

3,897,181

Grants - other - - 37,369 33,368 791,956 926,859 - - 2,332,424 1,716,258

Permits, licences and fines

561,847

395,047

Investment income 17,208 18,407 - - 21,378 13,383 - 864,829 788,215

Other revenue - - - - 587,136 36,054 - - 1,577,361 830,846

Water and sewer - - - - - - 26,505,509 12,947,897 26,505,509 12,947,897

Prov of MB - Unconditional Grants - - - - - - - - 1,084,947 1,881,354

Prov of MB - Conditional Grants - - - - 208,519 148,262 - - 9,482,653 2,393,954

Total revenue

413,016

611,347

47,370

51,865

2,333,883

1,938,729

26,505,509

12,947,897

58,333,819

37,378,164

EXPENSES

Personnel services

355,043

340,642

110,103

73,068

1,807,944

1,759,277

2,345,790

2,395,004

9,939,647

9,843,894

Contract services

189,235

247,343

34,118

83,060

767,418

770,252

2,087,023

2,209,305

7,984,448

7,594,582

Utilities

5,917

5,768

1,393

919

353,735

326,633

1,161,042

1,028,583

1,954,882

1,787,704

Maintenance materials and supplies

68,010

114,006

5,264

2,743

364,841

417,594

1,429,932

1,393,495

3,042,219

2,962,238

Grants and contributions

59,430

50,045

642,286

604,219

979,760

873,563

Amortization

17,879

34,120

825

222

1,300,612

1,269,318

1,663,250

1,290,833

4,040,248

3,746,534

Interest on long term debt

274,134

339,101

274,134

339,101

Other

5,579

12,390

14,032

16,985

109,196

55,564

432,839

121,854

Total expenses

641,663

754,269

225,165

227,042

5,620,166

5,541,958

8,687,037

8,317,220

28,648,177

27,269,470

Surplus (Deficit)

(228,647)

(142,922)

(177,795)

(175,177)

(3,286,283)

(3,603,229)

17,818,472

4,630,677

29,685,642

10,108,694

REVENUE

City of Portage la Prairie

SCHEDULE 5

CONSOLIDATED DETAILS AND RECONCILIATION TO CORE GOVERNMENT RESULTS

For the Year Ended December 31, 2021

Core

Controlled

Government

Entities

Partnerships

Total

2021

2020

2021

2020

2021

2020

2021

2020

Property taxes

11,549,155

11,653,932

11,549,155

11,653,932

Grants in lieu of taxation

838,674

873,480

838,674

873,480

User fees

1,871,117

1,782,190

15,200

14,565

1,650,103

2,100,426

3,536,420

3,897,181

Grants - other

1,502,043

752,275

1,056

3,756

829,325

960,227

2,332,424

1,716,258

Permits, licences and fines

561,847

395,047

561,847

395,047

Investment income

826,070

756,212

173

213

38,586

31,790

864,829

788,215

Other revenue

986,013

790,736

268

549

591,080

39,561

1,577,361

830,846

Water and sewer

26,505,509

12,947,897

26,505,509

12,947,897

Prov of MB - Unconditional Grants

1,084,947

1,881,354

1,084,947

1,881,354

Prov of MB - Conditional Grants

9,220,088

2,201,805

54,046

43,887

208,519

148,262

9,482,653

2,393,954

Total revenue

54,945,463

34,034,928

70,743

62,970

3,317,613

3,280,266

58,333,819

37,378,164

EXPENSES

Personnel services

7,808,260

7,788,228

37,057

43,296

2,094,331

2,012,371

9,939,648

9,843,895

Contract services

7,250,550

6,839,705

3,203

5,435

730,695

749,441

7,984,448

7,594,581

Utilities

1,641,713

1,486,197

1,830

2,624

311,338

298,883

1,954,881

1,787,704

Maintenance materials and supplies

2,517,655

2,698,885

13,532

14,999

259,297

244,611

2,790,484

2,958,495

Grants and contributions

2,547,058

2,324,657

(33,400)

(28,000)

(1,404,111)

(1,419,351)

1,109,547

877,306

Amortization

3,730,133

3,448,810

17,275

292,840

280,449

4,040,248

3,746,534

Interest on long term debt

270,683

336,348

3,451

2,753

274,134

339,101

Other

384,018

(30,029)

7,481

2,415

163,288

149,468

554,787

121,854

Total expenses

26,150,070

24,892,801

46,978

58,044

2,451,129

2,318,625

28,648,177

27,269,470

Surplus (Deficit)

28,795,393

9,142,127

23,765

4,926

866,484

961,641

29,685,642

10,108,694

REVENUE

City of Portage la Prairie

SCHEDULE 6

SCHEDULE OF CHANGE IN RESERVE FUND BALANCES

For the Year Ended December 31, 2021

Equipment

Handicap

Land

General

Infastructure

Replacement

Cemetary

Policing

Fire Truck

Access

Development

Environmental

Reserve

53,304

1,494

2,986

721

3,097

785

11,485

3,728

53,304

1,494

2,986

721

3,097

785

11,485

3,728

112,970

(59,666)

1,494

2,986

721

3,097

785

11,413

3,728

370,100

100,000

150,000

50,000

26,500

796,500

200,000

(371,427)

(796,500)

(275,182)

(387,025)

(350,506)

(51,365)

(60,993)

1,494

(172,196)

200,721

(233,928)

50,785

(312,593)

(47,637)

8,576,646

250,772

474,903

2,088

505,766

100,472

2,033,821

629,652

8,515,653

252,266

302,707

2,101

200,721

271,838

151,257

1,721,228

582,015

Transfers from utility operating fund

Transfer from nominal surplus

CHANGE IN RESERVE FUND BALANCES

FUND SURPLUS, BEGINNING OF YEAR

FUND SURPLUS, END OF YEAR

Acquisition of tangible capital assets

Transfers to utility operating fund

Transfers from reserve fund

Transfers to reserve fund

Transfers from general operating fund

Transfers to general operating fund

REVENUE

EXPENSES

NET REVENUES

TRANSFERS

Other expenses

Total expenses

Investment income

Other income

Total revenue

Investment charges

Debt payments

SCHEDULE 6

2021

Crescent

Special

Capital

Recreation

Glesby

Accomm.

Environmental

Computer

Lake

Handivan

Administration

Levy

Dedication Fees

Sidewalk

Softball

Gas Tax

Centre

Tax Marketing

Reserve

937

147

601

603

143

961

212

47,639

937

147

601

603

143

961

212

47,639

50,000

881

147

601

603

143

961

212

47,639

(50,000)

1,644

170,000

1,464,497

20,000

43,207

18,000

(13,027)

(240,000)

(4,247,169)

(11,004)

(5,500)

5,854

1,791

601

603

143

(69,039)

212

(2,735,033)

8,996

(12,293)

146,897

23,834

633

97,481

97,902

23,207

186,512

11,692

3,342,806

128,090

101,852

152,751

25,625

637

98,082

98,505

23,350

117,473

11,904

607,773

137,086

89,559

SCHEDULE 6

2020

Accom

BDO

Library

Utility

Utility Nutrient

WPCF Upgrade

Tax Sask Ave

Capital

Infastructure

Removal

Utility

Capital

Advance CIP

Reserve

Total

16,668

152,726

124,184

44,608

114,707

581,753

488,037

16,668

152,726

124,184

44,608

114,707

581,753

488,037

163,098

16,668

152,726

124,184

44,608

114,707

418,655

488,037

43,207

10,000

6,793

2,455,948

3,467,422

(315,103)

700,000

1,696,500

237,632

255,632

4,000,578

3,441,832

3,500,000

9,000,000

15,941,832

(79,078)

234,078

(280,000)

(7,438)

(285,608)

(3,423,142)

(10,744,892)

(6,508,629)

(236,793)

10,000

6,793

709,230

(132,882)

142,874

237,632

3,544,608

9,114,707

10,023,675

1,287,305

448,301

20,000

9,636

905,066

12,089,861

9,814,693

230,175

40,252,758

38,965,453

211,508

30,000

16,429

1,614,296

11,956,979

9,957,567

467,807

3,544,608

9,114,707

50,276,433

40,252,758

City of Portage la Prairie

SCHEDULE 7

SCHEDULE OF L.U.D. OPERATIONS - Name of L.U.D.

For the Year Ended December 31, 2021

2021

2020

Budget

Actual

Revenue

Taxation

Other Revenue (specify)

Total revenue

Expenses

General Government:

Indemnities

Transportation Services

Road and street maintenance

Bridge maintenance

Sidewalk and boulevard maintenance

Street lighting

Other

Environmental health

Waste collection and disposal

Recycling

Other (specify):

Regional planning and development

Planning and zoning

Urban renewal

Beautification and land rehabilitation

Urban area weed control

Other (specify):

Recreation and cultural services

Community centers and halls

Swimming pools and beaches

Golf courses

Skating and curling rinks

Parks and playgrounds

Other recreational facilities

Museums

Libraries

Other cultural facilities

Total expenses

Net revenues (expenses)

Transfers:

Transfers from (to) L.U.D. reserves

Transfers from (to) operating fund

Other (specify):

Change in L.U.D. balances

Unexpended balance, beginning of year

Unexpended balance, end of year

City of Portage la Prairie

SCHEDULE 8

SCHEDULE OF FINANCIAL POSITION FOR UTILITIES

As at December 31, 2021

2021

2020

Total

Cash and temporary investments

Amounts receivable

3,475,209

2,504,187

Portfolio investments

Due from other funds

535,070

944,820

Other (specify):

4,010,279

3,449,007

Accounts payable and accrued liabilities

356,608

404,066

Unearned

revenue

760,825

Long-term debt (Note 9)

2,000,127

Due to other funds

Other (specify):

3,117,560

404,066

NET FINANCIAL ASSETS (NET DEBT)

892,719

3,044,941

NON-FINANCIAL ASSETS

Tangible capital assets (Schedule 1)

61,260,505

54,469,338

Inventories

302,102

283,258

Prepaid expenses

1,495

22,088

61,564,102

54,774,684

FUND SURPLUS (DEFICIT)

62,456,821

57,819,625

COMMITMENTS AND CONTINGENCIES (Notes 11 and 12)

FINANCIAL ASSETS

LIABILITIES

City of Portage la Prairie

SCHEDULE 9

SCHEDULE OF UTILITY OPERATIONS

For the Year Ended December 31, 2021

Budget

2021

2020

REVENUE

Water

Water fees

11,802,000

12,149,269

11,697,280

Bulk Water fees

16,874

13,439

sub-total- water

11,802,000

12,166,143

11,710,719

Sewer

Sewer fees

18,000

12,910

12,942

Lagoon tipping fees

sub-total- sewer

18,000

12,910

12,942

Property taxes

Recovery

Deficit recovery

Debenture recovery

sub-total- recovery

Government transfers

Operating

850,000

14,081,204

995,766

Capital

sub-total- government transfers

850,000

14,081,204

995,766

Other

Hydrant rentals

57,725

57,950

57,825

Connection charges

15,000

23,691

18,385

Installation service

Penalties

10,000

6,106

5,820

Contributed tangible capital assets

Investment income

131,556

144,940

Administration fees

Gain on sale of tangible capital assets

15,144

Other income (specify)

85,200

10,805

1,500

sub-total- other

167,925

245,252

228,470

Total revenue

12,837,925

26,505,509

12,947,897

City of Portage la Prairie SCHEDULE 9

SCHEDULE OF UTILITY OPERATIONS (cont'd)

For the Year Ended December 31, 2021

Budget

2021

2020

EXPENSES

General

Administration

1,325,904

1,507,878

1,328,936

Training costs

Billing and collection

Utilities (telephone, electricity, etc.)

Other (specify)

sub-total- general

1,325,904

1,507,878

1,328,936

Water General

Purification and treatment

3,395,725

2,955,440

2,743,000

Water purchases

Transmission and distribution

1,635,613

1,207,665

1,300,887

Hydrant maintenance

Transportation services

Connection costs

Other (specify)

sub-total- water general

5,031,338

4,163,105

4,043,887

Water Amortization & Interest

Amortization

1,392,226

955,888

Interest on long term debt

sub-total- water amortization & interest

1,392,226

955,888

Sewer General

Collection system costs

1,299,792

732,141

1,085,183

Treatment and disposal cost

653,129

356,115

294,458

Lift Station costs

315,409

264,548

273,923

Transportation services

Connection costs

Other sewage & disposal costs (specify)

(23,973)

sub-total- sewer general

2,244,357

1,352,804

1,653,564

Sewage Amortization & Interest

Amortization

271,024

334,945

Interest on long term debt

sub-total- sewer amortization & interest

271,024

334,945

Total expenses

8,601,599

8,687,037

8,317,220

NET OPERATING SURPLUS

4,236,326

17,818,472

4,630,677

TRANSFERS

Transfers from (to) operating fund

Transfers from (to) reserve funds

(4,236,326)

(13,181,276)

1,463,340

CHANGE IN UTILITY FUND BALANCE

4,637,196

6,094,017

FUND SURPLUS, BEGINNING OF YEAR

57,819,625

51,725,608

FUND SURPLUS, END OF YEAR

62,456,821

57,819,625

City of Portage la Prairie

SCHEDULE 10

RECONCILIATION OF THE FINANCIAL PLAN TO THE BUDGET

For the Year Ended December 31, 2021

Financial Plan

Amortization

Interest

Long Term

Consolidated

PSAB

General

Utility(ies)

(TCA)

Expense

Transfers

Accruals

Entities

Budget

Property taxes

11,374,776

Grants in lieu of taxation

838,680

User fees

1,649,967

1,665,303

3,315,270

Permits, licences and fines

333,375

Investment income

140,000

38,759

178,759

Other revenue

517,206

591,348

1,108,554

Water and sewer

12,837,925

Grants - Province of Manitoba

3,297,399

262,565

3,559,964

Grants - other

881,786

830,381

1,712,167

Transfers from accumulated surplus

996,500

700,000

(1,696,500)

Transfers from reserves

Total revenue

20,029,689

13,537,925

(1,696,500)

3,388,356

35,259,470

EXPENSES

General government services

2,585,309

47,251

2,632,560

Protective services

6,203,952

202,555

6,406,507

Transportation services

2,423,859

668,332

46,978

3,139,169

Environmental health services

918,876

9,958

399,863

1,328,697

Public health and welfare services

331,704

Regional planning and development

423,022

3,810

338,188

765,020

Resource cons and industrial dev

148,357

1,134,976

89,792

1,373,125

Recreation and cultural services

2,428,063

1,679,106

270,683

1,662,975

6,040,827

Water and sewer services

8,601,599

Fiscal services:

Transfer to capital

122,500

850,000

(972,500)

Debt charges

1,553,126

(1,553,126)

Short term interest

310,000

(310,000)

Transfer to reserves

2,520,111

4,086,326

(6,606,437)

Allowance for tax assets

60,810

(60,810)

Total expenses

20,029,689

13,537,925

3,745,988

(1,282,443)

(7,949,747)

2,537,796

30,619,209

Surplus (Deficit)

(3,745,988)

1,282,443

6,253,247

850,560

4,640,261

REVENUE

City of Portage la Prairie

SCHEDULE 11

ANALYSIS OF TAXES ON ROLL

December 31, 2021

2021 2020

Balance, beginning of year 1,212,367$ 1,030,261$

Add:

Tax levy (Schedule 12) 19,900,221 19,491,109

Taxes added 179,596 590,792

Penalties or interest 95,331 71,980

Other accounts added - -

Tax Adjustments (specify) - -

Sub-total 20,175,148 20,153,881

Deduct:

Cash collections - current 17,538,780 16,651,914

Cash collections - arrears 978,526 955,176

Writeoffs - -

Tax discounts 5,298 4,952

E.P.T.C. - cash advance 1,759,625 2,359,733

Other credits (specify) - -

Sub-total 20,282,229 19,971,775

Balance, end of year

1,105,286

1,212,367

City of Portage la Prairie

SCHEDULE 12

ANALYSIS OF TAX LEVY

For the Year Ended December 31, 2021

2021

2020

Assessment

Mill Rate

Levy

Debt charges:

Debt - PCU Centre

585,694,690

2.42

1,419,724

1,412,791

Debt - NE Transportation Route

585,694,690

0.04

25,771

25,646

sub-total - Debt charges

1,445,494

1,438,437

Deferred surplus

Reserves:

Reserve - Glesby Centre

585,694,690

0.03

18,742

18,807

Reserve - Handicap Access

585,694,690

0.08

46,856

46,732

Reserve - Fire

585,694,690

0.24

139,981

139,056

Reserve - Sidewalk

585,694,690

0.27

158,138

159,573

Reserve - General

585,694,690

0.29

168,680

23,366

Reserve - Equipment Replacement

585,694,690

0.16

93,125

92,894

sub-total - Reserves

625,522

480,428

General municipal

585,694,690

15.63

9,154,408

9,001,052

Special levies:

Assessment Levy

585,694,690

0.26

149,433

148,175

Business tax (rate%)

Total municipal taxes (Schedule 2)

11,374,857

11,068,092

Education support levy

142,354,220

8.81

1,253,998

1,240,088

Special levies:

Portage la Prairie School Division

569,499,210

12.77

7,271,366

7,182,929

Total education taxes

8,525,364

8,423,017

Total tax levy (Schedule 11)

19,900,221

19,491,109

City of Portage la Prairie

SCHEDULE 13

SCHEDULE OF GENERAL OPERATING FUND EXPENSES

For the Year Ended December 31, 2021

2021

2020

Actual

(Restated - Note 26)

General government services:

Legislative

260,410

265,121

General administrative

2,107,628

2,056,476

Other (specify)

368,740

(118,444)

2,736,778

2,203,153

Protective services:

Police

4,303,615

3,775,604

Fire

2,438,856

2,447,220

Emergency measures

77,984

120,961

Other (specify)

66,422

69,231

6,886,877

6,413,016

Transportation services:

Road transport

Administration and engineering

208,506

255,821

Road and street maintenance

1,752,229

1,679,944

Bridge maintenance

Sidewalk and boulevard maintenance

74,187

64,792

Street lighting

278,355

253,481

Other (specify)

Air transport

Public transit

Other (specify)

2,313,276

2,254,038

Environmental health services:

Waste collection and disposal

648,817

611,112

Recycling

259,411

242,465

Other (specify)

908,229

853,577

Public health and welfare services:

Public health

148,453

180,320

Medical care

Social assistance

70,721

Other (specify)

7,960

2,887

227,134

253,928

Regional planning and development

Planning and zoning

4,783

14,850

Urban renewal

Beautification and land rehabilitation

Urban area weed control

172,009

195,435

Other (specify)

126,683

178,756

303,475

389,041

Resource conservation and industrial development

Rural area weed control

Drainage of land

Veterinary services

Water resources and conservation

Regional development

119,107

150,150

Industrial development

4,336

68,711

Tourism

1,915

952

Other (specify)

10,015

(5,446)

135,373

214,367

Sub-totals forward

13,511,142

12,581,121

City of Portage la Prairie

SCHEDULE 13

SCHEDULE OF GENERAL OPERATING FUND EXPENSES

For the Year Ended December 31, 2021

2021

2020

Actual

(Restated - Note 26)

Sub-totals forward

13,511,142

12,581,121

Recreation and cultural services:

Administration

1,452,770

1,417,775

Community centers and halls

72,900

Swimming pools and beaches

Golf courses

Skating and curling rinks

6,040

5,449

Parks and playgrounds

479,062

441,141

Other recreational facilities

1,543,335

1,536,328

Museums

Libraries

323,617

466,070

Other cultural facilities

79,467

59,750

3,957,191

3,999,413

Total expenses

17,468,333

16,580,534

City of Portage la Prairie

SCHEDULE 14

RECONCILIATION OF ANNUAL SURPLUS (DEFICIT)

December 31, 2021

2021

2020

General

Utility

Total

MUNICIPAL NET SURPLUS (DEFICIT) UNDER THE MUNICIPAL ACT

1,929,411

1,085,223

3,014,634

4,735,125

Adjustments for reporting under public sector accounting standards

Eliminate expense - transfers to reserves

2,455,948

16,897,465

19,353,413

2,344,183

Eliminate revenue - transfers from reserves

(7,151,786)

(4,401,044)

(11,552,830)

(4,877,455)

Increase revenue - reserve funds interest

581,752

488,037

Increase (Decrease) revenue - Net surplus (deficit) of consolidated entities

890,249

966,567

Increase (decrease) revenue - grant authorized

6,734,639

(571,068)

6,163,571

Increase expense - liability estimate for PSAB purposes

(268,813)

Eliminate revenue - transfer from nominal surplus(es)

Increase revenue (increase expense) - gain (loss) on sale of tangible capital assets

(308,520)

(2,372)

Increase expense - amortization of tangible capital assets

(2,066,883)

(1,663,250)

(3,730,133)

(3,488,810)

Decrease expense - principal portion of debenture debt

243,557

(2,000,127)

(1,756,570)

1,179,098

Eliminate expense - acquisitions of tangible capital assets

8,827,617

8,471,272

17,298,889

8,905,571

NET SURPLUS (DEFICIT) PER CONSOLIDATED STATEMENT OF OPERATIONS

11,867,171

17,818,471

29,685,642

10,249,944