HomeMy WebLinkAboutCS 22-08
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 22-08
Date: September 8, 2008
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From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
APT A Wrap-up - Financial Implications
Recommendations:
1. That Report CS 22-08 of the Director, Corporate Services & Treasurer be
received;
2. That Council authorize the Director, Corporate Services & Treasurer (Treasurer of
APT A) to close the accounting books of APT A in the manner indicated in this
report, or as may be satisfactory to the Treasurer and proceed with closing
APTA's bank account once all final entries are settled;
3. That Council terminate the Merger Agreement dated August 8, 2001 between
Pickering and Ajax with regard to Transit Services to officially dissolve APTA; and,
4. That the appropriate officials of the City of Pickering be authorized to take the
necessary actions to give effect thereto.
Executive Summary: Further to report CS 28-07 and report CS 16-08 this report
provides the summary of the final entries to be recorded for the wrap-up of all financial
matters related to APT A and to close the accounting books and formally dissolve
APTA.
Financial Implications: As indicated in this report. In addition, the financial impact
of dissolving APTA on the City of Pickering and the Town of Ajax will be addressed
separately by the Treasurers of each municipality. This final wrap-up of APTA's
financial affairs is contingent upon Region of Durham agreeing to the settlement
matters discussed in Report CS 16-08.
Sustainability Implications:
implications.
This report does not contain any sustainability
Report CS 22-08
Date: September 8, 2008
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Subject: APTA Wrap-up - Financial Implications
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Page 2
Background: Further to report CS 28-07 and report CS 16-08, which provided
updates on APT A's financial matters resolved and staff's position on those still
outstanding at that time, this report provides a summary of the financial impact of the
resolution of all outstanding matters pertaining to the transfer of transit services to the
Region on January 1 , 2006.
Normally this report would be presented to the APT A Board for approval however no
appointees were made to the Board after the election in 2006 since transit services had
been transferred to the Region. Therefore, any final decisions pertaining to APT A
requires the agreement of Council.
It is to be noted that the financial transactions summarized below are the normal course
of business when closing the accounting books and dissolving an entity. Although
negotiations with the Region have been challenging, these items have been resolved to
ensure the municipal partners' interests were best protected and to facilitate finalizing
all related financial matters that has taken a very long time in resolving.
APTA's Wrap-up
Write-off Prepaid Expenses
Write-off Inventory
Cancel Promissory Notes
Cancel Promissory Notes interest
Recognize Cumulative Deficit
Total
$156,364
536,894
(1,020,565)
(53,531 )
337,940
Distribution to Municipalities *
(42,898)
Payment to Region for Unfunded Liabilities
$210,700
* It is anticipated the Region will pay approximately $39,500 of the prepaid balance
therefore the distribution represents this amount in addition to the balance in the bank
account of approximately $3,300 as at December 31,2007.
The above table summarizes the final entries required for the settlement of APT A's
assets, liabilities and unfunded liabilities. This net cost will be shared 50/50 by both
Pickering and Ajax per the termination clause in the Merger Agreement dated August 8,
2001. The financial impact of the wrap-up of APTA to the Town of Ajax and City of
Pickering individually will be addressed separately by the Treasurers of the two
municipalities.
Once all transactions have been settled then the Director, Corporate Services &
Treasurer of Pickering will proceed with closing the bank account as APT A ceases to
exist. Any future settlement of outstanding insurance claims will be funded directly by
Pickering and Ajax per the cost sharing agreement in place as at December 31, 2005
which was Pickering at 55% and Ajax at 45%.
Report CS 22-08
Date: September 8, 2008
Subject: APTA Wrap-up - Financial Implications
Page 3
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Attachments:
None
Prepared By:
Prepared I Approved I Endorsed By:
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ristine Senior
Manager, Accounting Services
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Gillis A. Paterson
Director, Corporate Services & Treasurer
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Copy: Chief Administrative Officer
Recommended for the consideration of
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