SAUGEEN CONSERVATION

BOARD OF DIRECTORS MEETING

Thursday, March 27, 2014 1:00pm

A G E N D A

1. Adoption of Agenda 2. Declaration of Pecuniary Interest 3a. Minutes of Board of Directors Meeting – February 20, 2014 – attached 3b. RESERVES REPORT & PRESENTATION OF 2013 FINANCIAL STATEMENTS – Gaviller & Co., Walkerton 4. Matters arising from the Minutes - Bluffs Campground Update 5. Correspondence - attached 6. Reports - Chairman - Finance Report – Report #6a attached - Program Report – Report #6b attached - Executive Committee Closed Session Minutes – Feb. 20/14 – available at meeting 7. New Business - 2013 Annual Report – available at meeting 8. Other Business 9. For the Good of the Committee Reports Adjournment

SAUGEEN VALLEY CONSERVATION AUTHORITY Conservation through Cooperation MINUTES

MEETING: Board of Directors DATE: Thursday, February 20, 2014 TIME: 1:00pm LOCATION: Administration Office, Formosa

CHAIR: Bill Scriven

DIRECTORS PRESENT: Brian Gamble, Glen Irwin, Wilf Gamble, Dave Kell, Terry Fisk, Peter Hambly, Ron Coristine, Dan Kerr

DIRECTORS ABSENT, WITH REGRET: Mike Leggett, Carl Zettel, Doug Gowanlock, John Eccles, Diane Huber, Roland Anstett

OTHERS PRESENT - Wayne Brohman, General Manager / Secretary Treasurer - Shannon Wood, Recording Secretary - Gary Senior, Sr. Manager of Flood Warning and Land Management - Erik Downing, Manager of Environmental Planning and Regulations - Jennifer Prenger, Environmental Planning Technician - Paul Elston, Regulations Officer - Jo-Anne Harbinson, Manager of Water Management and Stewardship Services - Donna Lacey, Forest Technician - Dale Schaefer, Accounting Clerk - Members of the Press - Major Volunteer and Sponsors

Board of Directors Meeting – February 20, 2014

1. ADOPTION OF THE AGENDA

MOTION #G14-14 Moved by: Dan Kerr Seconded by: Peter Hambly THAT the agenda be adopted as presented.

Carried

2. DECLARATION OF PECUNIARY INTEREST

No persons declared a conflict of pecuniary interest relative to any item on the agenda at this time.

3. SERVICE AWARDS TO STAFF AND DIRECTORS

The following were recognized and awarded for their ‘years of service’. They are as follows: • Stu Byers – 45 years • Jim Penner – 40 years • Bob Burrell – 35 years • Donna Lacey – 15 years • Laura Molson – 10 years • Nancy Guest (DWSP) – 5 years • Emily Vandermeulen (DWSP) – 5 years

Recognition of Major Sponsors for the Saugeen Valley Conservation Foundation (for contributing in excess of $1,000) • Grant’s Your Independent Grocer, Hanover • John Sutherland and Sons Insurance, Guelph • Ontario Power Generation, Tiverton • Ross Young Bus Lines, Tiverton • Paisley Kinsmen • ScotiaBank, Hanover • The Post, Hanover

Recognition of Major Volunteer for Saugeen Conservation (for contributing in excess of 50 hours of volunteer service) • Gary Senior - ongoing maintenance and upkeep, Allan Park Conservation Area • Bruce County Campers – spring work for Saugeen Bluffs Conservation Area • Kincardine Ski Club – upkeep, maintenance and trail development for Stoney Island Conservation Area • Marian Wersch – garden work at Sulphur Spring Conservation Area • Melissa Henkusens and Julie Henhoeffer, weekly office work

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Board of Directors Meeting – February 20, 2014

Recognition of Major Volunteers for the Saugeen Valley Conservation Foundation (assisting with fundraising event and functions) Catherine Dickison, Lin Fleming, Sam Fraser, John and Jeanne Kuntz, Nancy Gilroy and Family, John and Joan Grubb, Jo-Anne Harbinson, Gary Senior, Donna Lacey, Maryanne Krotesch, Robert LaCelle, Jack MacLeod and Family, the Martin Family, Marlene Montag, Jim and Barbara Potts, Judy Shelley and Family, Bob and Monika Zettel

4. MINUTES OF THE BOARD OF DIRECTORS MEETING – Thursday, December 12, 2013 and Friday, January 17, 2014

MOTION #G14-15 Moved by: Wilf Gamble Seconded by: Brian Gamble THAT the Board of Directors meeting minutes for Thursday, December 12, 2013 and the annual meeting minutes of Friday, January 17, 2014 be adopted as circulated.

Carried

5. MATTERS ARISING FROM THE MINUTES

a. Hydro Usage – There was some discussion about the rising cost of hydro and the need to be more diligent in terms of consumption. Wayne stated that this was discussed at the recent Manager’s Meeting and that Les McKay (Manager of Information Technology) has volunteered to look into this issue, researching peak consumption periods, etc. In addition, staff agreed to be more attentive to turning off lights, computer screens, etc. They will also be looking into the prospect of solar panels. b. Postage Rate Increase – Wayne stated that this was also discussed at the Manager’s Meeting and that special effort will be taken to use postage only when necessary. Staff has also been instructed to utilize email to a greater degree and on-line payments. c. Saugeen Bluffs Conservation Area Campground – Wayne provided an update on this issue, re: the leasing out of the Saugeen Bluffs Campground to a private source. He stated that much needs to be done before this is to happen but that he is proceeding with the investigation as instructed. In addition, he continued to say that the Bluffs has been instrumental in the cross-country school runs and, of course, the Maple Syrup Festival. Again, all this needs to be taken into consideration before the final decision is made.

Discussion: It was asked whether there was an opportunity for SVCA and MVCA to combine efforts in this regard, since Maitland Valley is currently looking into leasing Falls Reserve Conservation Area. Wayne agreed to look into this.

Ron Coristine expressed his thanks to staff for following through with this endeavour. It was also asked if the sale for the ‘Bluffs House’ had been finalized. Wayne explained that yes, the closing date for the offer is April 1, 2014.

As an added note, the Chair stated that the hydro dam in Walkerton will no longer be listed for sale. The pending sale was not completed as the required Ministry of Natural

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Board of Directors Meeting – February 20, 2014

Resource approval had not been received by the deadline. The Chair also made note of the importance of the portage route around the dam for the navigation of the by canoeists.

6. CORRESPONDENCE

a. Town of Newmarket – a letter sent to all Conservation Authorities across Ontario, the topic of which dealt with the recent cancellation of the 70 year-old Ontario Ranger Program, an initiative of the Ministry of Natural Resource. The Town asked for a letter of support from the SVCA (to the MNR), requesting a reinstatement of the program. The program offered Ontario youth with an excellent hands-on opportunity to learn about conservation and environmental issues. The following motion was moved.

MOTION #G15-16 Moved by: Glen Irwin Seconded by: Terry Fisk THAT with respect to the recent cancellation of the Ontario Junior Ranger Program, previously offered by the Province of Ontario with the purpose of providing a once-in-a-lifetime experience for youth to learn about the importance of conserving our shared natural environment; let it further be resolved,

THAT Saugeen Conservation send a letter to Premier Kathleen Wynne and Ministry of Natural Resource, David Oraziettie, urging the government to restore the Ontario Ranger Program for future generations of younger people.

Carried

b. Township of Wellington North – letter stating the appointment of Terry Fisk to the SVCA Board of Directors for 2014.

7. REPORTS

a. Chairman – Bill stated that he has been reviewing the information/ material from Conservation Ontario. He questioned the additional costs for Conservation Ontario services and whether the SVCA should be taking a closer look into this issue.

b. Finance Report – a copy of Report #6a, the Finance Report, is appended to the office copy of these minutes.

i. Discussion – there was some discussion with regard to a few items on the list. Wayne provided an explanation for the general account items. The Chair suggested that perhaps there be a budget for the Latornell Symposium, which takes place each year in November (it is Ontario’s premier

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Board of Directors Meeting – February 20, 2014

environmental conference). Wayne agreed. He also explained that any staff who attend the conference are required to do a report on what they learned. These reports are filed on Sharepoint. It was also suggested that Director’s gain access to the Sharepoint to review such documents. Peter Hambly and Ron Coristine both complimented the staff for a job well done on the Finance Report.

An additional question arose as to the latest update on the Penetangore River Watershed group and whether they are still completing environmental improvement projects. Wayne explained that the individual heading up the program has stepped down and that currently there is nothing to report.

There being no further questions, the following motion was moved.

MOTION #G14-17 Moved by: Dan Kerr Seconded by: Ron Coristine THAT the Financial Report to December 31, 2013 be accepted as distributed, and further;

THAT the Accounts Payable, totaling $423,281.55 for November and December, 2013, be approved for payment.

Carried

c. Program Report – a copy of Report #6b, entitled Program Report is appended to the office copy of these minutes.

Question: A question was asked regarding the reassessment of the Formosa property for property tax purposes. Wayne explained that the reassessed property tax amount has not been paid pending results of the appeal. Legislation and past precedent strongly suggest that the SVCA appeal will be successful.

MOTION #G14-18 Moved by: Ron Coristine Seconded by: Wilf Gamble THAT the Program Report be adopted as presented, and further;

THAT the Permits as identified in Report #6b, dated Thursday, February 20, 2014 be adopted as presented.

Carried

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Board of Directors Meeting – February 20, 2014

8. NEW BUSINESS

a. Introduction of New Employees – Erik Downing, Manager of Environmental Planning and Regulations introduced the new employees in this department. The introductions consisted of the following: o Jennifer Prenger, Environmental Planning Technician o Paul Elston, Regulations Officer

Gary Senior, Sr. Manager of Flood Warning and Land Management introduced the new maintenance staff person in his department: o Rick Rowbotham, Field Services Coordinator

The Chair welcomed everyone to the SVCA.

b. Greenock Swamp Presentation – Shannon Wood, Manager of Communications and Jim Penner, Manger of Forestry made a presentation on the Greenock Swamp and the proposed new trail system. Discussion: Some of the directors asked if the presentation could be made available to them. Shannon agreed to look after this. It was also asked if ATV’s were a problem in the swamp. Jim Penner expanded on this issue and explained the difficulties involved in keeping these machines out of the wetland.

9. OTHER BUSINESS

a. Update on Watershed Conditions, re: flooding – Wayne provided the latest update on the watershed conditions which were as follows: - Approximately 6 inches of water in the current snowpack - Predicted rain for Friday not to have too much of an impact on local waterways; most will be absorbed into the snow pack - Conditions are to change after Friday becoming cold again - Local waterways are frozen over which may be of a concern when melting takes place; will blockages (and possible flooding) occur?

The meeting was adjourned at 2:50pm on a motion from Dan Kerr

______Bill Scriven Shannon Wood Chair Recording Secretary

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1078 Bruce Road 12, P.O. Box 150, Formosa ON Canada N0G 1W0 Tel 519-367-3040, Fax 519-367-3041, [email protected], www.svca.on.ca

MEMO TO: SVCA Board of Directors

DATE: March 27, 2014

FROM: Laura Molson, Manager, Accounting

SUBJECT: Reserve Report

The appropriations to and from reserves based on the December 31, 2013 year end are attached for your review.

If you have any questions regarding the Reserve Report, please do not hesitate to call me at extension 228.

Recommendation:

THAT appropriations to and from reserves, as at December 31, 2013 be approved as distributed.

Watershed Member Municipalities Municipality of Arran-Elderslie, Municipality of Brockton, Township of Chatsworth, Municipality of Grey Highlands, Town of Hanover, Township of Howick, Municipality of Morris-Turnberry, Municipality of South Bruce, Township of Huron-Kinloss, Municipality of Kincardine, Town of Minto, Township of Wellington North, Town of Saugeen Shores, Township of Southgate, Municipality of West Grey

Saugeen Valley Conservation Authority Statement of Continuity of Reserves For the year ended December 31, 2013

Opening From Operations To Operations Closing Reserve Balance To Reserves From Reserves Balance Note Agricultural Lands 15,449 14,489 11,699 18,238 Computer Upgrades 6,522 13,660 - 20,182 Environmental Planning 75,013 1,306 4,459 71,860 DFO 6,240 114 251 6,103 Forest Management 441,072 21,695 14,546 448,221 Formosa Sewer Hookup 22,500 22,908 24,582 20,826 1 Greenock Trails 27,012 31,588 - 58,600 House Repairs 34,356 2,503 23,713 13,146 2 Kincardine Maintenance 129,073 2,352 372 131,054 Knappville Acquisition 29,748 544 - 30,292 Land Management 34,330 6,533 24,742 16,121 Legal Fees - 20,061 - 20,061 3 LTD/OMERS/Benefits - 20,061 - 20,061 4 Office Equipment 24,646 423 9,000 16,069 Ortho Imagery - 20,061 - 20,061 5 Resource Centre 10,628 194 - 10,822 Retiree Benefits - 30,091 - 30,091 6 Saugeen Parks 27,119 28,071 41,537 13,654 Insurance Deductible 12,949 12,273 - 25,222 7 Specified Donations 4,413 77 1,096 3,394 Short Term Disability - 15,046 - 15,046 8 Stewardship - 18,359 - 18,359 9 Stormwater Management 866 - 866 - Sutherland Centre 896 - 896 - Vehicle Replacement 19,635 32,619 17,762 34,492 Wetland Acquisition 2,064 15,055 2,064 15,055 Working Capital 252,693 248,276 302,789 198,179 1,177,224 578,359 480,374 1,275,209 Land Held for Resale - 38,871 - 38,871 Tangible Capital Assets 9,930,271 228,596 588,322 9,570,544 11,107,495 845,826 1,068,696 10,884,625

cont'd next page Notes 1. SVCA's share of the costs for the new municipal water treatment plant were paid in 2013. The balance in the reserve is to cover the conversion and hookup to the sewer line. 2. In 2013 $16,700 was taken from this reserve to purchase a riding mower for the Saugeen Bluffs campground. That amount is being paid back to the reserve over eight years. 3. A new reserve was set up for expected future legal costs related to planning and regulation enforcement. 4. A new reserve was set up to cover possible continuing benefit costs should an employee go on long term disability leave. 5. Ortho imagery is an important software tool which is updated every five years. The purpose of this reserve is to set aside funds each year to cover the cost of the update. 6. This new reserve covers the SVCA's share of continuing group benefit costs for retired employees who are eligible to remain on the group benefit plan. 7. This reserve was increased to cover the maximum deductible amount under the insurance policy. 8. This new reserve is to cover the costs should a temporary replacement be required for an employee on short term disability. 9. Funds for this reserve came from payroll savings generated by a staff member being lent to the Source Water Protection program part time for eight months in 2013. Prepared by: 03-20-14 Reviewed by: 03-20-14

SAUGEEN VALLEY CONSERVATION AUTHORITY

FINANCIAL REPORT DECEMBER 31, 2013 D R A F T F O R D I S C U S S I O N Reviewed with and approved by:

Date SAUGEEN VALLEY CONSERVATION AUTHORITY

DECEMBER 31, 2013

CONTENTS

Independent Auditor's Report 1

Statement of Financial Position 3

Statement of Operations 4

Statement of Change in Net Financial Assets 5

Schedule of Revenue 6

Schedule of Expenses 7

Schedule of Accumulated Surplus 8

Statement of Cash Flow 9

Notes to the Financial Statements 10

UNAUDITED SCHEDULES:

Schedule 1 - Schedule of Administration Expenses 18

Schedule 2 - Schedule of Program Operation Expenses 19

Schedule 3 - Schedule of Repairs and Maintenance 20

Schedule 4 - Schedule of Revenues and Expenses of Saugeen Parks 22

Schedule 5 - Schedule of Revenues and Expenses of Special Programs 23

Schedule 6 - Schedule of Revenues and Expenses of Vehicles and Equipment 24

Schedule 7 - Schedule of Municipal Levies 25

Schedule 8 - Schedule of Revenues and Expenses of Source Water 26 GAVILLER & COMPANY LLP CHARTERED ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT

To the Members of Saugeen Valley Conservation Authority :

Report on the Financial Statements We have audited the accompanying financial statements of the Saugeen Valley Conservation Authority , which comprise the statement of financial position as at December 31, 2013 , and the statement of operations, statement of change in net financial assets and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 the 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 financial statements based on our audit. We conducted our audit 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Authority's preparation and fair presentation of the 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 Authority's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Saugeen Valley Conservation Authority as at December 31, 2013 , and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

1 GAVILLER & COMPANY LLP CHARTERED ACCOUNTANTS

Unaudited Information We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of the schedules on pages 18 through 26 of the Saugeen Valley Conservation Authority financial statements.

Licensed Public Accountants Walkerton, Ontario March 27, 2014

2 SAUGEEN VALLEY CONSERVATION AUTHORITY

STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31

2013 2012 $ $

Financial assets Cash (Note 3) 2,038,052 2,177,696 Accounts receivable (Note 4) 375,715 188,741 Land held for sale 38,871 - 2,452,638 2,366,437 Liabilities Accounts payable and accrued liabilities 158,629 281,150 Deferred revenue (Note 5) 1,002,306 934,368 1,160,935 1,215,518 Net financial assets 1,291,703 1,150,919 Non-financial assets Tangible capital assets ( Note 7) 9,570,545 9,930,271 Prepaid expenses (Note 6) 22,377 26,305 9,592,922 9,956,576

Accumulated surplus (Page 8) 10,884,625 11,107,495

Approved ______Director

______Director

The accompanying notes are an integral part of these financial statements 3 SAUGEEN VALLEY CONSERVATION AUTHORITY

STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31

Budget Actual Actual 2013 2013 2012 $ $ $ ( Note 10) Revenue (Page 6) Government transfers and special programs 1,147,896 800,771 1,161,348 Municipal levies 1,668,646 1,614,349 1,563,212 Authority generated 1,083,106 1,128,484 971,650 Other 225,369 368,298 474,322 4,125,017 3,911,902 4,170,532 Expenses (Page 7) 4,291,898 4,134,772 4,407,851 Annual surplus (deficit) (166,881) (222,870) (237,319) Accumulated surplus, beginning of year 11,107,495 11,107,495 11,344,814 Accumulated surplus, end of the year (Page 8) 10,940,614 10,884,625 11,107,495

The accompanying notes are an integral part of these financial statements 4 SAUGEEN VALLEY CONSERVATION AUTHORITY

STATEMENT OF CHANGE IN NET FINANCIAL ASSETS FOR THE YEAR ENDED DECEMBER 31

2013 2012 $ $ Annual deficit (222,870) (237,319) Acquisition of tangible capital assets (93,813) (121,421) Amortization of tangible capital assets 375,266 390,205 Loss on disposal of tangible capital assets 38,902 1,519 Proceeds on disposal of tangible capital assets 500 1,100 Change in land held for resale 38,871 - 136,856 34,084 Acquisition of prepaid expense (22,377) (26,305) Use of prepaid expense 26,305 26,295 3,928 (10) Change in net financial assets 140,784 34,074 Net financial assets , beginning of year 1,150,919 1,116,845 Net financial assets , end of year 1,291,703 1,150,919

The accompanying notes are an integral part of these financial statements 5 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE OF REVENUE FOR THE YEAR ENDED DECEMBER 31

Budget Actual Actual 2013 2013 2012 $ $ $ ( Note 10) Revenues Government Transfers Administration - 13,145 13,720 Program operations 149,584 132,314 134,068 Capital programs 56,898 25,047 3,247 Saugeen parks (Schedule 4) 6,000 9,454 10,698 212,482 179,960 161,733 Source Water Protection (Schedule 8) 935,414 620,811 999,615 1,147,896 800,771 1,161,348 Municipal Levies (Schedule 7) General levies 1,534,508 1,534,507 1,497,081 Special levies 134,138 79,842 66,131 1,668,646 1,614,349 1,563,212 Authority Generated Agricultural lands 8,420 8,496 8,499 Education program fees 27,287 25,637 25,441 Forestry products 169,495 146,450 19,698 Grey Bruce forestry service 242,500 268,864 322,785 Planning and regulation fees 171,500 221,498 165,172 Saugeen parks (Schedule 4) 453,818 452,351 420,116 Rental homes 10,086 5,188 9,939 1,083,106 1,128,484 971,650 Other Interest earned - 20,429 19,277 Vehicle and equipment recoveries (Schedule 6) 122,000 102,882 112,865 Donation revenue - SVCA Foundation 10,000 12,250 10,060 Donation revenue - other - - - Miscellaneous operations 18,300 26,420 27,878 Loss on sale of assets - (38,902) (1,519) Administration overhead 73,069 79,373 78,229 Special programs (Schedule 5) - 164,585 226,145 gauge maintenance contracts 2,000 1,261 1,387 225,369 368,298 474,322 Total Revenue 4,125,017 3,911,902 4,170,532

The accompanying notes are an integral part of these financial statements 6 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE OF EXPENSES FOR THE YEAR ENDED DECEMBER 31

Budget Actual Actual 2013 2013 2012 $ $ $ ( Note 10) Expenses Administration (Schedule 1) 534,157 483,565 474,720 Program operations (Schedule 2) 1,800,791 1,715,830 1,603,124 Repairs and maintenance (Schedule 3) 248,296 90,106 45,552 Saugeen parks (Schedule 4) 610,501 601,457 608,733 Vehicles and equipment (Schedule 6) 142,423 80,867 104,810 Agricultural lands 8,170 3,497 7,029 Rental homes 12,146 12,568 10,138 Other expenses - 9,321 3,953 3,356,484 2,997,211 2,858,059 Amortization ( Note 7) - 375,266 390,205 3,356,484 3,372,477 3,248,264 Total Source Water Protection Expenses (Schedule 8) 935,414 603,458 999,615 Total Special Program Expenses (Schedule 5) - 158,837 159,972 Total Expenses 4,291,898 4,134,772 4,407,851

The accompanying notes are an integral part of these financial statements 7 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE OF ACCUMULATED SURPLUS FOR THE YEAR ENDED DECEMBER 31 , 2013 Opening From To Operations Closing Balance Operations Balance $ $ $ $ Internally Restricted Surplus Agricultural Lands 15,449 14,489 11,699 18,239 Computer Upgrades 6,522 13,660 - 20,182 Environmental Planning 75,013 1,306 4,459 71,860 Department of Fisheries and Oceans 6,240 114 251 6,103 Forest Management 441,072 21,695 14,546 448,221 Formosa Sewer Hookup 22,500 22,908 24,582 20,826 Greenock Trails 27,012 31,588 - 58,600 House Repairs 34,356 2,503 23,713 13,146 Kincardine Maintenance 129,073 2,352 372 131,053 Knappville Acquisition 29,748 544 - 30,292 Land Management 34,330 6,533 24,742 16,121 Legal Fees - 20,061 - 20,061 LTD/OMERS/Benefits - 20,061 - 20,061 Office Equipment 24,646 423 9,000 16,069 Ortho Imagery - 20,061 - 20,061 Resource Centre 10,628 194 - 10,822 Retiree Benefits - 30,091 - 30,091 Saugeen Parks 27,119 28,071 41,537 13,653 Self Insured Damaged 12,949 12,273 - 25,222 Specified Donations 4,413 77 1,096 3,394 Short Term Disability - 15,046 - 15,046 Stewardship - 18,359 - 18,359 Stormwater Management 866 - 866 - Sutherland Centre 896 - 896 - Vehicle Replacement 19,635 32,619 17,762 34,492 Wetland Acquisition 2,064 15,055 2,064 15,055 Working Capital 252,693 248,276 302,789 198,180 1,177,224 578,359 480,374 1,275,209 Land Held For Resale - 38,871 - 38,871 Tangible Capital Assets 9,930,271 228,596 588,322 9,570,545 11,107,495 845,826 1,068,696 10,884,625

The accompanying notes are an integral part of these financial statements 8 SAUGEEN VALLEY CONSERVATION AUTHORITY

STATEMENT OF CASH FLOW FOR THE YEAR ENDED DECEMBER 31

2013 2012 $ $

Cash flows from (for): Operating activities Annual deficit (222,870) (237,319) Non-cash items: Amortization expense 375,266 390,205 Loss on disposal of tangible capital assets 38,902 1,519 191,298 154,405

Changes in non-cash working capital balances ( Note 12) (237,629) (287,132) Net change in cash from operations (46,331) (132,727) Investing activities Acquisition of capital assets (93,813) (121,421) Proceeds on sale of capital assets 500 1,100 (93,313) (120,321) Financing activities Proceeds on sale of investments - 448,277 Net change in cash position (139,644) 195,229 Cash, beginning of year 2,177,696 1,982,467 Cash, end of year 2,038,052 2,177,696

The accompanying notes are an integral part of these financial statements 9 SAUGEEN VALLEY CONSERVATION AUTHORITY

NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2013 Nature of Operations

The Saugeen Valley Conservation Authority ("the Authority") is established under the Conservation Authorities Act of Ontario to further the Conservation, restoration, development and management of natural resources, other than gas, oil, coal and minerals, for the watersheds within its area of jurisdiction. The watersheds include areas in the Municipalities of Arran-Elderslie, Brockton, Kincardine, South Bruce, Grey Highlands, Morris-Turnberry and West Grey, the Townships of Huron-Kinloss, Chatsworth, Southgate, Howick, and North Wellington, and the Towns of Saugeen Shores, Hanover, and Minto.

The Authority is a registered charity and is exempt from income taxes.

1. Summary of Significant Accounting Policies The financial statements have been prepared by the management of the Authority in accordance with Canadian generally accepted accounting principles for organizations operating in the local government sector as recommended by the Public Sector Accounting Board of The Canadian Institute of Chartered Accountants. Significant aspects of the accounting policies adopted by the Authority are as follows:

(a) Basis of Accounting Sources of financing and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they become available and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. (b) Revenue Recognition Government transfers are recognized in the financial statements in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met and reasonable estimates of the amount can be made. General and special municipal levies are recognized as revenue when the amounts are levied on the municipalities. Authority generated revenue is recognized when the price is fixed or determinable, collectability is reasonably assured and services are provided to customers. Other revenues are recognized on an accrual basis. (c) Land Held For Resale Land held for resale is stated at the lower of cost and net realizable value. Cost includes amounts for improvements to prepare the land for sale. (d) Deferred Revenue Revenue restricted by legislation, regulation, or agreement and not available for Authority purposes is reported as deferred revenue on the statement of financial position. The revenue is reported on the statement of operations in the year in which it is used for the specified purpose.

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NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2013

1. Summary of Significant Accounting Policies (continued) (e) Internally Restricted Surplus Appropriations are made from operations to reserves for future expenses and contingencies for such amounts as are deemed appropriate, and upon approval of the Board of Directors. (f) Tangible Capital Assets Tangible capital assets are recorded at cost, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. Cost includes overheads directly attributable to construction and development Amortization is reflected on a declining balance basis over the estimated useful life of the assets at the following amortization rates:

Buildings 5% Conservation Areas 5% Erosion & Flood Control 5% Equipment 15 % Floodwarning Equipment 5% Vehicles 30 % Information Technology 3 year straight-line

Contributed capital assets are recognized as assets and revenue at fair value at the time they are received. (g) Classification of Expenses To achieve consistency of reporting by the Conservation Authorities in Ontario, expenses are reported to follow the classifications set up by the Ministry of Natural Resources. These are as follows: General Administration expenses include those associated with head office functions other than technical staff and associated programs. Program Operation expenses include technical and program operations support staff, operations and maintenance of water control structures, forest management and expenses at Saugeen Parks.

Other Operations expenses include property management, special employment projects, motor pool, etc. (h) Vehicles and Equipment The Authority operates a motor pool of vehicles and equipment. Internal charges for the use of vehicles and equipment are made to the various projects of the Authority based on an hourly or distance travelled rate, which is designed to recover all costs of operating the pool including replacement of equipment. These internal charges are included in the appropriate expense classifications. Expenses incurred by the motor pool for the purchase of equipment and operating costs and the recovery of expenses by internal charges are reported in the statement of operations and net assets.

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NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2013

1. Summary of Significant Accounting Policies (continued) (i) Use of Estimates The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The principal estimates used in the preparation of these financial statements are the determination of the estimated useful life of tangible capital assets, and valuation of tangible capital assets when testing for possible impairment. Actual results could differ from management's best estimates as additional information becomes available in the future. (j) Financial Instruments The Authority considers any contract that creates a financial asset, a financial liability or equity instrument as a financial instrument, except in limited items such as leases and loan commitments. Initial recognition and measurement A financial asset or a financial liability is recognized when the Authority becomes a party to the contractual provisions of the financial instrument. Financial assets originated or acquired or financial liabilities issued or assumed in an arm’s length transaction, are initially measured at their fair value. Subsequent measurement Changes in fair value of investments in equity instruments are recognized in net income in the period incurred. All other financial assets and financial liabilities are measured at amortized cost. Impairment At the end of each reporting period, the Authority assesses whether there are any indications that financial assets measured at cost or amortized cost may be impaired.

2. New Accounting Pronouncements and Policies

On January 1, 2013, the authority adopted the Public Sector Accounting Handbook Section 3410, "Government Transfers". The new standard establishes recognition, measurement, presentation and disclosure standards for transfers from senior levels of government and transfers from the authority. This section is effective for fiscal years beginning on or after April 1, 2012. The accounting change resulted in no change to operating surplus or measurement of assets or liabilities.

12 SAUGEEN VALLEY CONSERVATION AUTHORITY

NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2013 3. Cash 2013 2012

$ $ Cash - Operating Funds 1,338,319 1,261,374 Cash - Source Water Protection 699,733 916,322

2,038,052 2,177,696

The Authority administers funds as the lead authority for the Source Water Protection program. These funds are held in trust by the Authority for the benefit of a particular region including but not limited to, the area within Saugeen Valley Conservation Authority. Expenses made from this account must be approved by a committee consisting of members from all affected areas. As at December 31, 2013 $ 99,489 ( 2012 - $227,144 ) was due from the Source Water Protection program to the operating fund for 2013 expenses.

Included in the Operating Funds is a high interest account which earns interest at 1.5%.

4. Accounts Receivable 2013 2012

$ $ Municipal Levies 77,021 65,288 Source Water Protection 163,725 966 Other 134,969 122,487

375,715 188,741

5. Deferred Revenue 2013 2012

$ $ Source Water Protection 749,778 693,300 Other Deferred Revenue 252,528 241,068

1,002,306 934,368

6. Prepaid Expenses 2013 2012

$ $ Authority 22,127 24,006 Source Water Protection 250 2,299

22,377 26,305

13 SAUGEEN VALLEY CONSERVATION AUTHORITY

NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2013

7. Tangible Capital Assets

Balance 2012 Additions Disposals Balance 2013 Cost $ $ $ $ Land 3,318,003 - (38,871) 3,279,132 Buildings 1,629,611 - - 1,629,611 Conservation Areas 844,440 20,218 - 864,658 Erosion and Flood Control 13,569,555 2,188 (152,549) 13,419,194 Equipment 354,407 40,988 (16,960) 378,435 Floodwarning Equipment 236,678 - - 236,678 Vehicles 205,583 17,762 - 223,345 Information Technology 101,949 12,657 (4,675) 109,931 20,260,226 93,813 (213,055) 20,140,984

Accumulated Amortization $ $ $ $ Buildings 595,314 51,715 - 647,029 Conservation Areas 401,703 22,602 - 424,305 Erosion and Flood Control 8,753,237 239,016 (114,359) 8,877,894 Equipment 218,307 24,881 (15,748) 227,440 Floodwarning Equipment 110,427 6,313 - 116,740 Vehicles 157,300 19,514 - 176,814 Information Technology 93,667 11,225 (4,675) 100,217 10,329,955 375,266 (134,782) 10,570,439

Net Book Value $ $ Land 3,318,003 3,279,132 Buildings 1,034,297 982,582 Conservation Areas 442,737 440,353 Erosion and Flood Control 4,816,318 4,541,300 Equipment 136,100 150,995 Floodwarning Equipment 126,251 119,938 Vehicles 48,283 46,531 Information Technology 8,282 9,714 9,930,271 9,570,545

14 SAUGEEN VALLEY CONSERVATION AUTHORITY

NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2013

8. Revolving Credit Facility

The Authority has available a Royal Bank of Canada revolving credit facility with a maximum limit of $200,000. The facility bears interest at bank prime plus 1.25% and is due on demand. As at December 31, 2013 , the balance is $ NIL . The Authority also has a $75,000 VISA credit limit facility available. The agreement contains reporting requirements.

9. Pension Plan

The Authority makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a multi-employer plan, on behalf of the members of its staff. This plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay.

The amount contributed to OMERS for 2013 was $ 145,910 ( 2012 - $ 116,817 ) for current service costs and is included as an expense on the statement of operations.

The OMERS plan has reported a $ 9.92 billion actuarial deficit at the end of 2012 ( 2011 - $ 7.29 billion deficit), and actuarial liabilities of $ 69.1 billion ( 2011 - $ 64.5 billion). Amounts for 2013 were unavailable.

10 . Budget Amounts The 2013 budget amounts for Saugeen Valley Conservation Authority approved by the Board have been restated to conform to the basis of presentation of the revenues and expenses on the statement of operations and net assets. The budget numbers have not been audited.

11 . Commitments The Authority has entered into an operating lease agreement for a Toshiba printer/copier requiring 36 monthly payments of $265 commencing June 2013. The lease expires June 2016. The Authority has entered into an operating lease agreement for a 2013 Toyota Matrix requiring 36 monthly payments of $388 commencing May 2013. The lease expires May 2016. The minimum annual lease payments on these commitments for the next three years are as follows: 2014 $7,836 2015 $7,836 2016 $3,530

15 SAUGEEN VALLEY CONSERVATION AUTHORITY

NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2013

11. Commitments (continued)

The Authority has entered into an agreement for the operation of an online reservation for two campgrounds requiring annual payments of $1,000 per park. The agreement is for 5 years, beginning 2013 and ending in 2018.

12 . Cash Flow Information

The net change in non-cash working capital balances consists of: 2013 2012

$ $ Accounts Receivable (186,974) 264,953 Prepaid Expenses 3,928 (10) Accounts Payable and Accrued Liabilities (122,521) (83,211) Deferred Revenue 67,938 (468,864)

(237,629) (287,132)

13. Financial Instruments

The Authority's financial instruments consist of cash, accounts receivable, and accounts payable. The significant financial risk the Authority is exposed to is Credit Risk. Credit Risk is the risk that one party to a financial instrument will cause a loss for the other party by failing to pay for its obligation. The Authority is exposed to credit risk in connection with the collection of its accounts receivable. The Authority mitigates this risk by maintaining credit approval and payment policies and the Authority does not anticipate significant loss for non-collection.

14 . Contingent Liability

A lawsuit has been filed against the Authority for an incident which arose as a result of an act of nature. In the opinion of management and legal counsel, the outcome of the lawsuit is not determinable. Should any loss result from the resolution of this lawsuit in excess of any applicable insurance coverage, such loss will be charged to operations in the year of resolution.

16 SAUGEEN VALLEY CONSERVATION AUTHORITY

UNAUDITED SCHEDULES DECEMBER 31, 2013 D R A F T F O R D I S C U S S I O N Reviewed with and approved by:

Date

17 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 1 SCHEDULE OF ADMINISTRATION EXPENSES FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Budget Actual Actual 2013 2013 2012 $ $ $ General Administration Wages and benefits 344,602 297,218 251,475 Board of Directors' allowances 27,000 18,712 27,191 Staff mileage and expenses 11,900 3,322 6,819 Equipment, purchases and rentals 2,500 3,519 1,669 Materials and supplies 25,750 27,688 26,487 Insurance 18,000 16,196 17,465 Property taxes 17,500 16,729 16,681 Conservation Ontario levy 21,910 21,832 21,272 Other 1,000 4,076 4,740 Administrative centre operating expenses 36,600 46,579 45,434 Consultant fees - 356 - Legal, audit fees and bank charges 9,835 9,673 8,304 Health and safety expenses 8,000 11,545 18,920 524,597 477,445 446,457 Human Resources Advertising and staff development 2,060 2,895 12,500 Information and Technology Materials 2,000 - 16,504 Self Insurance 1,000 1,866 3,660 Resource Centre Operating expenses 4,500 4,495 4,013 534,157 486,701 483,134 Less amounts capitalized - (3,135) (8,414) 534,157 483,566 474,720

Capital Acquisitions Defibrillators - 7,306 IT infrastructure 3,135 1,108

18 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 2 SCHEDULE OF PROGRAM OPERATION EXPENSES FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Budget Actual Actual 2013 2013 2012 $ $ $ Flood Control Flood control structures 195,311 174,133 89,393 Flood warning, river forecasting and operation of dams 211,935 174,002 178,981 Land Management Taxes on provincially significant lands 21,020 21,936 20,825 Property and land management 59,302 57,832 57,190 Forest management SVCA lands 154,475 115,101 131,215 Grey Bruce forestry service 218,006 278,410 278,075 Geographical information systems 89,624 72,877 47,890 Water Management Plan input and review and regulation enforcement 469,912 463,990 429,140 Water quality 99,831 84,923 88,260 Community Relations Conservation information 201,865 198,223 208,122 Conservation education 79,510 80,047 76,961 1,800,791 1,721,474 1,606,052 Less amounts capitalized - (5,644) (2,928) Total Program Operation Expenses 1,800,791 1,715,830 1,603,124

Capital Acquisitions Flood control - IT infrastructure 736 313 Land management - IT infrastructure 747 168 Water management - IT infrastructure 4,161 2,007 Community relations - IT infrastructure - 440 5,644 2,928

19 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 3 SCHEDULE OF REPAIRS AND MAINTENANCE FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Budget Actual Actual 2013 2013 2012 $ $ $ Water Management Surveys, Studies and Capital Projects Durham Ice Management 24,420 21,580 - Durham Upper Dam Emergency Spillway 89,376 - - Durham Dam Safety - 2,188 - Inverhuron Flood Control Repair - 7,480 2,958 Huron Centre for Coastal Conservation 10,000 10,000 10,000 123,796 41,248 12,958 Recreational Capital Projects Allan Park - Entrance / Parking Lot - - 2,030 Brucedale C.A. - Playground Equipment 1,000 1,096 - Brucedale C.A. - Picnic Shelter 22,000 20,218 - Denny's Dam - Vault tank 3,500 - - Durham C.A. - Control gates - - 4,199 Durham C.A. - Entrance upgrades - - 1,913 Durham C.A. - Firewood Storage 3,000 - - Durham C.A. - Pull through sites 39,000 - - Durham C.A. - Stairs 1,000 577 - Durham C.A. - Vault privy - - 12,814 Durham C.A. - Washroom upgrades 3,000 9,048 - McBeath C.A. - Signage - - 1,099 McBeath C.A. - Upgrades - - 4,562 Non-revenue parks trail upgrades 5,500 - 2,717 Picnic tables 2,000 5,495 1,020 Playground upgrades - - 7,241 Saugeen Bluffs C.A. - Shower linings - 3,879 6,829 Saugeen Bluffs C.A. - Washroom upgrades 5,000 653 - Saugeen Bluffs C.A. - Waterline Repairs - 3,268 - Signage-C symbols - - 747 Sulphur Spring - Picnic Shelter - - 9,057 Sulphur Spring - Signage 2,000 - 157 Varney - Picnic tables - - 1,020 87,000 44,234 55,405

20 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 3 (continued) SCHEDULE OF REPAIRS AND MAINTENANCE FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Budget Actual Actual 2013 2013 2012 Other Capital Projects Formosa sewer hookup 22,500 24,582 - Document scanning 15,000 6,327 9,741 Biennial tour - - 1,686 37,500 30,909 11,427 248,296 116,391 79,790 Less amounts capitalized - (26,285) (38,100) 248,296 90,106 41,690

Capital Acquisitions Brucedale, Picnic Shelter 20,218 - Durham dam safety 2,188 3,536 IT infrastructure 3,879 326 Durham, vault privy - 12,814 Durham, control gates - 4,199 Saugeen Bluffs, shower lining & tiles - 6,829 Sulphur Springs, playground equipment - 7,241 Sulphur Springs, roof for picnic shelter - 3,155 26,285 38,100

21 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 4 SCHEDULE OF REVENUES AND EXPENSES OF SAUGEEN PARKS FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Budget Actual Actual 2013 2013 2012 $ $ $ Revenue from Revenue Producing Conservation Areas Brucedale C.A. 78,387 72,860 74,752 Durham C.A. 180,650 186,480 170,101 Saugeen Bluffs C.A. 187,331 184,233 166,347 446,368 443,573 411,200 Government Grant 6,000 9,454 10,698 452,368 453,027 421,898 Expenses from Revenue Producing Conservation Areas Brucedale C.A. 56,045 44,925 42,194 Durham C.A. 183,050 196,892 189,993 Saugeen Bluffs C.A. 188,831 206,181 187,298 427,926 447,998 419,485 Excess of Revenue Over Expenses for the Year for Revenue Producing Conservation Areas 24,442 5,029 2,413 Revenue from Non-Revenue Producing Conservation Areas Donations - 300 200 Career grants - 1,280 1,320 Miscellaneous revenues 7,450 7,198 7,396 7,450 8,778 8,916 Expenses from Non-Revenue Producing Conservation Areas 182,575 153,459 189,248 Excess of Revenue Over Expenses for the Year for Non-Revenue Producing Conservation Areas (175,125) (144,681) (180,332)

22 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 5 SCHEDULE OF REVENUES AND EXPENSES OF SPECIAL PROGRAMS FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Actual Actual 2013 2012 $ $ Revenue BRSN tree incentive - 2,120 Experience Green 142 12,230 Grey Sauble Contract 47,346 21,555 Integrated watershed management plan - 20,430 OBBN course revenues 1,121 17,801 Ontario Benthos Biomonitoring Network 61,385 62,078 Great Guardian Grant - Stoney Island Upgrades 19,610 - Pine River Watershed Initiative Network-Experiential Site 1,000 - Power Work Camp 6,000 46,100 Saugeen Valley Children's Safety Village 53 10 Showcasing Water Innovation 21,357 8,118 Sulphur Spring Office Building - 29,467 Summer Experience Program 5,571 5,571 Tall Grass Prairie - 665 Waterworks Festival 650 - Yellow Fish Road 350 - 164,585 226,145 Expenses BRSN tree incentive - 2,120 Bruce / Milton Transmission Project - 818 DFO Drain Project 251 406 Experience Green 142 12,230 Grey Sauble Contract 47,346 21,555 IWMP Pine River - 20,430 OBBN course 1,121 - Ontario Benthos Biomonitoring Network 61,385 79,878 Great Lakes Guardian Grant - Stoney Island Upgrades 19,610 - Pine River Watershed Initiative Network-Experiential Site 1,000 - Saugeen Valley Children's Safety Village 53 10 Showcasing Water Innovation 21,357 8,118 Sulphur Spring Office Building - 8,171 Summer Experience Program 5,571 5,571 Tall Grass Prairie - 665 Waterworks Festival 650 - Yellow Fish Road 351 - 158,837 159,972 Excess of Revenue Over Expenses for the Year 5,748 66,173

23 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 6 SCHEDULE OF REVENUES AND EXPENSES OF VEHICLES AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Budget Actual Actual 2013 2013 2012 $ $ $ Revenue Vehicles 80,000 68,089 78,325 Equipment 20,000 14,274 15,333 Office equipment 20,000 18,943 18,847 Gain on sale of vehicles and equipment 2,000 1,576 360 122,000 102,882 112,865 Expenses Vehicles Operating costs 60,323 44,699 51,982 Repairs and maintenance 10,000 8,032 14,277 Equipment Operating costs 3,000 3,278 1,046 Repairs and maintenance 8,500 4,428 8,102 Office equipment Operating costs 18,500 13,661 21,161 100,323 74,098 96,568 Excess of Revenue Over Expenses for the Year, Before Leasing of Vehicles and Equipment 21,677 28,784 16,297 Purchasing and Leasing of Vehicles and Equipment 42,100 65,518 80,221 (20,423) (36,734) (63,924) Less amounts capitalized - (58,749) (71,979) Excess of Revenue Over Expenses for the Year (20,423) 22,015 8,055

Capital Acquisitions Gator 12,956 - Gator 11,699 - Kubota Mower 16,332 - 2013 Chevrolet Silverado 17,762 - Tree planter - 6,344 Backhoe - 65,635 58,749 71,979 Capital Disposals John Deere Mower (250) - John Deere Mower (250) - 2002 Dodge Van - (800) 2003 Chevrolet Silverado Pick Up - (300) (500) (1,100)

24 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 7 SCHEDULE OF MUNICIPAL LEVIES FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Modified Current Market Value in 2013 General 2013 Special Watershed Apportionment Levies Levies $ % $ $ Arran-Elderslie 260,025,519 2.5004 38,298 22,696 Brockton 877,777,578 8.4407 129,452 9,394 Chatsworth 312,801,827 3.0008 46,085 - Grey Highlands 446,838,041 4.2968 65,864 - Hanover 777,715,401 7.4785 114,687 - Howick 21,021,900 0.2021 3,456 - Huron-Kinloss 624,014,448 6.0005 92,007 1,500 Kincardine 1,924,853,790 18.5094 283,957 9,439 Minto 271,481,502 2.6106 39,988 - Morris-Turnberry 14,909,166 0.1434 2,771 - Saugeen Shores 2,250,888,913 21.6446 332,066 4,250 South Bruce 451,498,021 4.3416 66,551 - Southgate 584,088,375 5.6166 86,116 - Wellington North 379,462,896 3.6489 55,922 - West Grey 1,201,947,221 11.5579 177,287 32,563 10,399,324,598 100 1,534,507 79,842

25 SAUGEEN VALLEY CONSERVATION AUTHORITY

SCHEDULE 8 SCHEDULE OF REVENUES AND EXPENSES OF SOURCE WATER FOR THE YEAR ENDED DECEMBER 31 (UNAUDITED) Budget Actual Actual 2013 2013 2012 $ $ $ Source Water Protection Program Funding Operations 781,694 467,091 709,521 Early Response Grant Program 153,720 153,720 290,094 935,414 620,811 999,615 Source Water Protection Expenses Operations 781,694 449,738 709,521 Capital Source Water Protection Studies Early Response Grant Program 153,720 153,720 290,094 153,720 153,720 290,094 Total Source Water Protection Expenses 935,414 603,458 999,615 Transfer to Reserves - 17,353 - Excess of Revenue Over Expenses for the Year - - -

26 March 19, 2014

Saugeen Valley Conservation Authority 1078 Bruce Road 12 Box 150 Formosa , ON N0G 1W0

Attention: Board of Directors

Dear Sirs and Madams :

Re: Audit of December 31, 2013 Financial Statements The objective of an audit is to obtain reasonable assurance whether the financial statements are free of material misstatement and it is not designed to identify matters to communicate. Accordingly, our audit would not usually identify all such matters that may be of interest to management in discharging its responsibilities and it is inappropriate to conclude that no such matters exist.

During the course of our audit of the financial statements for the year ended December 31, 2013 , we did not identify any of the following matters: misstatements, other than trivial errors; fraud; misstatements that may cause future financial statements to be materially misstated; illegal or possibly illegal acts, other than ones considered inconsequential; or significant weaknesses in internal control. We would like to express our appreciation for the co-operation and assistance which we received during the course of our audit from your staff. We shall be pleased to discuss with you further any matters mentioned in this report at your convenience.

This communication is prepared solely for the information of management and those charged with governance and is not intended for any other purpose. We accept no responsibility to a third party who uses this communication.

Yours very truly,

John Bujold, B.Sc., CPA, CA, [email protected] for Gaviller & Company LLP 1078 Bruce Road 12, P.O. Box 150, Formosa ON Canada N0G 1W0 Tel 519-367-3040, Fax 519-367-3041, [email protected], www.svca.on.ca

REPORT #6a

MEMO TO: Saugeen Conservation Board of Directors

DATE: March 27, 2014

I have reviewed the bills amounting to $68,069.97 for January and February 2014 and hereby recommend approval for payment.

Bill Scriven Chair

Watershed Member Municipalities Municipality of Arran-Elderslie, Municipality of Brockton, Township of Chatsworth, Municipality of Grey Highlands, Town of Hanover, Township of Howick, Municipality of Morris-Turnberry, Municipality of South Bruce, Township of Huron-Kinloss, Municipality of Kincardine, Town of Minto, Township of Wellington North, Town of Saugeen Shores, Township of Southgate, Municipality of West Grey

CHEQUES FOR APPROVAL FOR JANUARY & FEBRUARY 2014

CHEQUE # VENDOR DESCRIPTION AMOUNT 76889 Alexandra Milanetti Mileage-Source Water (SWP) $ 180.30 76890 Brent's Maintenance Services Inc. Used set of hoist arms $ 565.00 76891 Buffett Taylor Benefits-February $ 8,714.81 76892 David Ellingwood Mileage-Source Water (SWP) $ 84.80 76893 Ken Jackson Construction Ltd. Inverhuron Flood Control repairs-release of holdback $ 527.86 76894 Municipality of Kincardine Property taxes-March $ 1,746.00 76895 Municipality of West Grey Property taxes-February $ 4,578.01 76896 OMSPA membership renewal $ 80.00 76897 Pitney Bowes equipment lease-Admin $ 276.99 76898 Town of Saugeen Shores Property taxes-February $ 1,243.00 76899 Township of Chatsworth Property taxes-February $ 1,267.00 76900 University of Waterloo OBBN Expenses (AFS) $ 2,757.20 76901 Toshiba Finance Lease payment $ 303.90 76902 Advance Construction equipment parts - #37 $ 288.13 76903 Bob's Glass & Mirror Sidelite Changed to Bottom Panel with Mailslot $ 734.50 76904 Bohnert Fire & Safety Supplies Fire Extinguisher Maintenance $ 520.30 76905 Gord Brown Oodles of Noodles Floodwarning Meeting $ 393.80 76906 Wayne Brohman Mileage-Administration $ 147.15 76907 Canadian Fire & Flood Nightly Cleaning $ 682.97 76908 Carquest Vehicle & Equipment Parts $ 246.53 76909 Conservation Ontario 2014 CA Levy - 1st installment $ 11,032.00 76910 Corporate Express office supplies/paper $ 568.70 76911 Cox Signs Lettering for Mail Slot $ 7.91 76912 CRS Contractors Rental Supply Hard Hats - H&S $ 42.94 76913 Davidson-Hill Elevator Inc. maintenance, phone charges-Formosa $ 490.42 76914 Desco Plumbing & Heating Sump Pump & Maintenance - Bluffs House $ 166.50 76915 Don Ditner Construction Salted Sand - Shop $ 282.50 76916 Emke Schaab Climate Care UV Bulb & Filter $ 379.57 76917 Excel Business Systems copier lease/copy charges -Source Water Prot (SWP) $ 761.36 76918 Foxton Fuels Limited furnace fuel/diesel fuel $ 3,030.10 76919 Freiburger Welding Equipment Repairs/Repairs-Durham Dams $ 815.81 76920 Gaviller & Company Audit $ 7,062.50 76921 Gillespie Office Equipment Copy charges $ 634.15 76922 Hanover Chrysler Dodge vehicle parts - #2 $ 39.83 76923 Hanover Home Hardware Equipment Repair/picture hanger/paint/cleaners $ 218.60 76924 Hanover Typocraft Ltd. office supplies/note pads $ 574.04 76925 Holst Office Supplies Labels, Binders, Laminator & Laminator Pouches/Office Supplies $ 478.04 76926 Hudson's Auto Centre Ltd. Tires - #9 $ 1,319.12 76927 Huron Bay Co-operative Inc. Furnace Oil - Bluffs House $ 1,001.19 76928 Hwy 4 Truck Service Ltd. Annual Inspections - #48 & #19 $ 2,495.74 76929 Ideal Supply Equipment parts & light repairs $ 354.08 76930 Joy Source for Sports Mug, Name Badge & Plaques $ 245.78 76931 Kitsupply paper supplies-Formosa $ 158.09 76932 Lang's Plumbing & Heating Ltd. Furnace Maintenance - Formosa $ 186.45 76933 Liftsafe Engineering & Service annual inspection-workshop hoist $ 790.28 76934 Loucks & Loucks, Barristers & Solicitors Legal Issues $ 632.80 76935 McLeans Home Hardware Paint & Shelf Bracket $ 31.57 76936 New-Life Mills Fish Food & Bird Feed $ 124.61 76937 North Wellington Co-op Bird Feed, Mouse Bait, Oil & Gasoline $ 631.38 76938 Packard Laminating Laminating Film $ 434.89 76939 Paisley Home Hardware Key Cut/ Parts for Bluffs House $ 34.48 76940 Petty Cash Petty Cash-meeting expenses, parking fees $ 123.20 76941 Praxair Products Inc. Shop supplies $ 133.10 76942 Purolator Courier courier charges $ 75.93 76943 QLab Systems Ltd. PayDirt Payroll Annual Renewal fee $ 672.35 76944 Saugeen Valley Conservation Foundation Memorial Grove-D. Gillan, Celebration Forest donation made to Authority $ 460.00 76945 Saugeen Sales & Rentals Ltd. Equipment Parts - Durham CA $ 57.52 76946 Ron Schmidt Snow Removal $ 1,287.00 76947 SGS Canada Inc. Water Sample Testing $ 169.50 76948 A. W. Sills Sales & Service Ltd Garbage Bags $ 124.87 76949 St. John Ambulance Standard First Aid Training Course $ 127.00 76950 Thinq Technologies IT Supplies - Toner for Toshiba Copier/Printer $ 458.78 76951 Mildmay Town Crier advertising-Forestry $ 49.72 76952 Universal Field Supplies Inc. Health & Safety supplies, Forestry Supplies $ 541.15 CHEQUE # VENDOR DESCRIPTION AMOUNT 76953 UPI Energy Gasoline $ 2,895.56 76954 UPS Canada Courier - Forestry $ 99.48 76955 Waste Management Garbage Removal $ 69.16 76956 Welbeck Sawmill Ltd. Snowshoes-snow survey/Lumber/Screws $ 362.00 $ 68,069.97

SWP - Source Water Protection AFS - Alternate Funding Source

REPORT #6b

SAUGEEN CONSERVATION

PROGRAM REPORT

Thursday, March 27, 2014 1:00pm

WATER RESOURCES / STEWARDSHIP SERVICES

Rural Stormwater Management Model (RSWMM) – Pine River Priority Watershed

The Technical group continues to meet via conference calls to discuss the progress of the computer model for the Priority watersheds that is being developed through Computations Hydraulics International (CHI). The SVCA will be providing additional information on water quality and quantity from the spring freshet so as to allow for calibration of the computer model for the priority watershed. A rural, event-based computer model like this one has not been created before. It will build upon existing tools to fill a gap in understanding impacts to the nearshore water quality of Lake Huron and make it possible to implement improved strategic actions that help to protect water quality. This new technology will then be shared with others across the county and the province. The model will assist in identifying the need for where projects work the best to improve water quality, put them in the locations where they can do the most good, and construct them at the scale that will be most effective.

Go to http://www.ruralstormwater.com/ for more information on the RSWMM and http://www.healthylakehuron.ca/.

Pine River Watershed Initiative Network

The Pine River Watershed Initiative Network is getting ready for the tree planting season and anticipates planting 22,000 trees in the watershed with 12 new landowners interested in planting on their properties, from floodplain, riparian, windbreaks and block plantings. Depending on funding, they also propose to complete three different berm projects. They will be applying to the Growing Forward 2 program with the respective landowners. They will also be finishing the Water and Sediment Control Basin (WaSCob) on the Eadie Farm which is east of Ripley. Penetangore Watershed Group

The Penetangore Watershed Group met in March to discuss and plan the spring activities. They have ordered a similar numbers of trees to plant in the watershed as was done last year, up to 7,000 trees. They will advertise tree “give aways” to residents in Wards 1 and 2 and recommend that the trees be planted along waterways to increase the riparian planting. Plans are underway to have a group of Program Report – March 27, 2014 students from KDSS plant trees at a local farm. In addition, the group will organize the continued planting at the Sobey’s stormwater pond to bring awareness to local elementary students the importance to native plants and biodiversity. SVCA staff continues to assist the group in their endeavours moving forward. Agricultural Erosion Control Structures Course Jo-Anne Harbinson successfully completed a one week certification training week on Agricultural Erosion Control Structures. The Design and Construction manual was prepared to assist contractors in the design, installation and maintenance of agricultural soil erosion control systems. This course was instructed by staff from the Ministry of Agriculture and Food. It was an excellent learning experience and one that provided on the ground design information in the correct applicable situations. The course detailed information on some parameters and design criteria for grass waterways, drop inlet structures, rock chutes, correct sizing and placement of riprap and water and sediment control structures. It did include a 3 hour exam at the end of the week. The SVCA now has the Certification and the software to design structures but designs can also be done manually. WaterWORKS for 2014 The Water Resources department, together with the Conservation Education Coordinator, is busy planning for the two WaterWORKS events that will be held in the Saugeen watershed. Walkerton high schools will be invited out for April 28th to enjoy the WaterWORKS day and May 13 is the date that the WaterWORKS will be held in Kincardine with the high school student there. Yellow Fish Road Stormdrain Marking Program Preparations are underway for the Yellow Fish Road stormdrain marking program in Kincardine. The schools are being contact to determine their interest in participating and a letter will be sent to the Municipality asking permission to do the painting of the Yellow Fish on the roadways in the Municipality. SVCA Flood Preparedness Municipal Workshop Water Management and Communications staff held a Flood Preparedness Workshop in Formosa on Wed. Feb.19th. There were 15 municipal representatives and emergency management personnel from across the watershed that attended the workshop. In addition, new SVCA staff also participated in the workshop so that they understand their roles and responsibilities in the event of a significant runoff event that results in flooding. The intent of the day is to go through the SVCA’s Flood Contingency Plan with our municipal partners so that roles and responsibilities are understood in the event of a flood event. We also looked at the messaging that is sent out by the SVCA as it relates to conditions in the watershed. Grey Bruce Sustainability Network The Grey Bruce Sustainability Network (GBSusNET) and the SVCA have partnered on a number of initiatives. In particular, we have developed together the WaterWORKS days and partnered in the Water and Energy Career days and the Experience Green 2012. The GBSusNET will be hiring a Sustainability Projects Intern in the next month; this Intern will be assisting SVCA staff in different capacities. The Sustainability Network will have this part time employee for seven months. They will work with the Communications department and assist with keeping up the social media aspects of the Authority and the GBSusNet. We look forward to having this person on a part–time basis. Water Quality Sara Pickard has started with us as the Water Quality Specialist in the interim with Martha Nichol on an extended sick leave. Sara has broad experience that she brings with her, she has worked at the SVCA in the past in the Water Management department, she has also work for Drinking Water Source Protection 2

Program Report – March 27, 2014 and more recently with the Ministry of the Environment. So far Sara has been familiarizing herself with the lab, doing some reorganization of it, and also going through the data to see where everything sits. She has also contacted the water quality labs that the Authority works with to obtain the annual quotes for the year and has been preparing documents for the Rural Stormwater Management Technical working committee.

ENVIRONMENTAL PLANNING & REGULATIONS

On February 19, 2014 a number of Department Planning and Regulations Staff were included in the SVCA’s Flood Contingency Workshop.

On February 20, 2014 David Van De Vyvere left his position as a Regulation Officer at the SVCA to pursue an employment opportunity at Bruce Power. The SVCA will look to fill his position, and hire and train successful candidate as soon as possible as the busy spring approaches.

On February 25, 26, and 28, 2014 the Manager, Environmental Planning and Regulations attended a number of training courses at Georgian College associated with his recent promotion to a Management role at the SVCA.

On March 5, 2014 the Manager, Environmental Planning and Regulations, attended a workshop with the Western Ontario Stream Monitoring and Research Team, and Headwater Steering Committee at the Upper Thames Region CA Headquarters. Tools and need to protect headwater stream areas were presented and discussed with other CA, Drainage, Municipal, and Provincial partners.

Department Staff have proceeded to update Department comment/document circulation methods to avoid increased postage costs.

Department staff continue to benefit from training sessions hosted by the former Sr. Manager, Environmental Planning and Regulations when scheduling permits.

The following Development, Interference with Wetlands and Alterations to Shorelines and Watercourses permits have been approved by authorized Authority staff since the February 20, 2014 Program Report:

Permit #14-006, is granted to Barry Parsons, to construct a 30 foot by 40 foot multi-level storage shed / workshop , at 35 Hillcrest Street E, Park Lot 4 to 50, Plan 144, North of River, Geographic Village of Teeswater;

Permit #14-007, is granted to Stephanie J. Gunn & Elizabeth J. Gunn, to construct an addition to an existing single detached dwelling including an elevated deck, related excavation, lot grading and restoration, at 245 South Rankin Street / TP PT Block D S/S Rankin Street, E/S Division Street, Geographic Town of Southampton;

Permit #14-008, is granted to Josh and Amanda Planz, to construct a driveway with related culvert and finished grading, at Part of Park Lot 12 North of Alfred Street and Part of Park Lot 12 South of Louisa Street, Geographic Township of Saugeen;

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Program Report – March 27, 2014

Permit #14-009, is granted to the Town of Saugeen Shores, to construct Market Street Storm Sewer project including Alterations to a Watercourse and a Regulated Area, and related works, at Market Street from Highland Street to Yacht Club Basin, Geographic Town of Port Elgin;

Permit #14-010, is granted to Clint Middleton, to construct a sewage disposal system upgrade including approved filling and grading, at 178 McCullough Lake Drive, Part Lot 22, Concession 4, Geographic Township of Sullivan;

Permit #14-011, is granted to Municipality of South Bruce, to install extension of the Elora Street Storm Sewer, at 24 Vincent Street Part Lot 27, Concession D, Geographic Village of Mildmay;

Permit #14-012, is granted to Municipality of South Bruce, to Install a gravity sanitary sewer, at Part Lot 26, Concession D, Geographic Village of Mildmay;

Permit #14-013, is granted to Township of Southgate, to replace the structure S14 Bridge over the South Saugeen River, at Lots 17 & 18, Concession 7, Geographic Township of Proton;

Permit #14-014, is granted to Gregory Mclean and Jane Slosser, to construct a single detached dwelling, driveway, porches, and related filling and grading, at 20 Spitzig Ave., Geographic Town of Walkerton;

Permit #14-015, is granted to Samuel Finnie, to construct an elevated deck, small retaining wall with minor regrading, and the enclosure of an existing covered porch to extend and existing bedroom and create an enclosed foyer, 204 Penetangore Row / Part of Lot 33, W/S Penetangore Row, Geographic Town of Kincardine;

Permit #14-016, is granted to Drew Paterson, to construct a dwelling addition and renovations, install a septic, at 722 Marl Lake Road 7 Lot 13, Plan 419, Geographic Township of Brant.

MEETINGS ATTENDED:

On February 24, 2014 the Manager, Environmental Planning and Regulations and Environmental Planning Coordinator visited the Municipality of Grey Highlands to discuss the Grey Highlands Official Plan update.

On March 10, 2014 the Manager, Environmental Planning and Regulations, attended a meeting at Grey County with Planning staff, other CA staff, and County staff regarding a potential county wide Natural Heritage System.

On March 14, 2014 the Manager, Environmental Planning and Regulations and Sr. Manager Flood Warning and Land Management attended a meeting at the Town of Hanover to discuss a new development proposal in the south east portion of the Town.

On March 17, 2014 the Manager, Environmental Planning and Regulations, Sr. Manager Flood Warning and Land Management, and General Manager / Secretary-Treasurer met South Bruce Staff to discuss a potential Teeswater ‘Two-Zone Floodplain policy area’ vs. the current default ‘one zone’ area currently in place.

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Program Report – March 27, 2014

On March 18, 2014 the Department was included in a Webinar regarding the updated Provincial Policy Statement, which comes into effect April 30, 2014.

On March 25, 2014 the Manager, Environmental Planning and Regulations attended the Conservation Authorities Coastal Group meeting at Halton Region CA.

FORESTRY

At this time of year the forestry department is typically seriously thinking of gearing up for the spring tree planting season. With the projected weather forecast to the end of March indicating below freezing temperatures and coupled with the significant snow cover across the watershed, It would appear that the tree planting season could be two to three weeks delayed. Projections are to plant 100,000 trees this spring with a two machine planters operating for a three week period. The one factor that controls the start of the season is the time when the nurseries can physically lift the trees for shipping. They are facing the same conditions as what we are and it is a waiting game to see when the season will break open.

The inventory of ash trees has begun at the Saugeen Bluffs Conservation Area in preparation for the creation of an action plan for dealing with the Emerald Ash Borer. Ash trees within the campground and within a tree length of the campsites are being inspected, measured, tagged with an identifying number and their GPS location recorded. Once this information is compiled and analyzed, a plan of action will be prepared to lessen the impact of the impending infestation. The action plan will take into consideration reducing the hazards of dying ash trees by either cutting down certain trees as well as injecting trees that are of high value in the campground. While the inevitable infestation could be several years away, it is better financially and physically to be pro-active and reduce the potential destruction before it arrives.

As a follow up to the program report presented at the last Board meeting, a workshop for municipal staff to discuss a cooperative approach to Emerald Ash Borer management strategies has been scheduled for April 7, 2014 at the Resource Centre located at Sulphur Spring Conservation Area.

ADMINSTRATION

The General Manager/Secretary-Treasurer gave a presentation to the Town of Minto council on March 4th. Future council presentations are scheduled for Wellington North (March 24) and the Town of Hanover (April 14).

The title for the position of Executive Secretary has been changed to Accounting/Administrative Clerk. That position has been filled by Valerie Wilkins effective March 3 on a four days per week basis. Valerie is assuming the Board related tasks associated with the position.

An agreement with Telus was finalized and staff have been provided with BlackBerry smart phones and cell phones. Training on the smart phones is in progress.

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Program Report – March 27, 2014

MPAC reports that the property tax appeal of December 3rd is still being dealt with by the Legislation & Policy Group. There was no indication of when the review will be completed.

PROPERTY UPDATE

The closing date for the sale of the Bluffs house has been extended by 3 days to April 4 at the request of the purchaser.

The documentation for the Powers property donation has been executed and the transfer of ownership of the property is expected to occur by the end of March.

The owners of the property abutting the Durham CA have provided an asking price. The General Manager/Secretary-Treasurer will provide an information package to the Building and Property Committee for review and discussion.

FLOOD WARNING

Since the February 20, 2014 Program Report there has been no reduction in the flood potential across the Watershed. The mid-March snow survey shows an average snow depth of 17 inches (43 cm) and a snow water equivalent of 7 inches (18 cm). In comparison, in early February the snow depth was slightly higher at 18.85 inches (48 cm) but the water equivalent was lower at 5.05 inches (13 cm). The mid- March values remain well above the long term average for the time of year. In addition, surface ice in watercourses continues to remain relatively intact. Staff is continuing to monitor Watershed and weather conditions and flood messages will be issued when warranted.

The Ministry of Natural Resources has provided two tipping bucket rain gauges at no cost to the Authority. One unit will be installed later in the year at the Port Elgin stream gauge site on the Main Saugeen River, and the other will be kept as a replacement backup for the other gauge sites.

The stop logs have been removed by staff from the Upper Durham Dam in preparation for the spring freshet. The south portion of the dam still has flash boards to be removed, which will be done prior to the spring flood, but they are iced-in at present. Some stop logs and flashboards are left in the dam during the winter season to help prevent frazil ice collecting downriver in the Town at freeze-up. This year the stop log removal operation was challenging due to the abundance of ice.

LAND MANAGEMENT

Staff has removed snow from the roads and parking areas at the Saugeen Bluffs Conservation Area, in preparation for the Maple Syrup Festival.

The CAMIS campground reservation system for Durham and Saugeen Bluffs CA’s came on-line for 2014 on March 1st.

Grant applications have been submitted under the Canada Summer Jobs program for some seasonal park positions in the two campgrounds.

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Program Report – March 27, 2014

Quotations for bulk sanitary and paper products for all work locations have been prepared.

The hiring process for a part time Park Attendant for the Sulphur Spring CA is underway. This position is needed only for a few hours on the weekends to care for the display wildlife and to maintain the grounds, as the Field Services Coordinator performs those duties during the work week.

A pasture rental agreement for the McBeath property has been finalized. The agreement is for 3 years at an annual rental revenue which is 34% higher than last year.

SOURCE PROTECTION COMMITTEE

The next Source Protection Committee meeting is scheduled for March 28, 2014 at the Grey Sauble Conservation administration office. Committee members will review ongoing technical work, including: the water quantity risk assessment in the Hanover-Lake Rosalind area; and spill scenario modelling for the intakes on Lake Huron and Georgian Bay.

The Ministry of the Environment (MOE) has provided initial comments on our local Proposed Source Protection Plan. The Source Protection Committee will be discussing the comments and possible revisions to the Proposed Source Protection Plan and the accompanying Explanatory document. An additional set of comments is expected from the MOE in the next couple months.

2014-2015 Funding Agreement

The Ministry of the Environment will be extending the current agreement between Saugeen Conservation and the province through to the end of March 2015. The agreement will continue to provide full funding for the on-going source protection planning work in our region. This will allow for the completion of technical work, consultation and resubmission of a revised Proposed Source Protection Plan, support of the Source Protection Committee, administration and staffing positions.

MEETINGS ATTENDED SINCE THE LAST BOARD OF DIRECTORS MEETING

Pine River Watershed Initiative Network Stewardship Grey Bruce Grey Bruce Sustainability Network Rural Stormwater Management Model Technical Review Team conference call Penetangore Watershed Group Lake Huron Centre for Coastal Conservation Conference Call Presentation to the Saugeen Field Naturalist on the Water Quality Program in the Watershed Community Foundations Grey Bruce Grant Funding Workshop Healthy Lake Huron Partners Meeting Held in Formosa Provincial Water Quality Monitoring Partners Workshop Provincial Monitoring Partners Workshop

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