THE REGIONAL MUNICIPALITY OF YORK
Notes to the Sinking Fund Financial Statements
December 31, 2005

The Regional Municipality of York’s sinking fund is a separate fund maintained for the purpose of providing periodic repayments of all debts to be retired by means of sinking funds..

1.  INVESTMENTS

All investments are purchased with the intention of holding them until maturity. They are recorded at cost, price adjusted annually for amortization of discount or premium on a present value basis as determined at the time of purchase with the amount of such amortization included in the interest earned on the Statement of Financial Activities and Change in Fund Balance. The investments have a market value of $1,797,304, (2004 - $1,595,630).

2. ACTUARIAL REQUIREMENTS

The actuarial requirements of the sinking fund represent the amounts levied during the year as set out in the sinking fund debenture by-law plus interest thereon capitalized at a rate of 4%, 5% or 8% per annum compounded annually. Any excess revenue over these requirements is included in the sinking fund balance.