HomeMy WebLinkAbout2022-04-21 2021 Annual ReportCOUNTY OF NEWELL, ALBERTA, CANADAFOR THE YEAR ENDING DECEMBER 31, 20212021 ANNUAL FINANCIAL REPORT
County of Newell, Alberta, Canada2021 ANNUAL FINANCIAL REPORT
For the fiscal period ending December 31, 2021
Produced by the Finance Department in cooperation with all County departments
For information on programs and services, or to obtain a copy of this document, contact:
ADMINISTRATION
Telephone: 403-362-3266E-Mail: administration@newellmail.ca
The 2021 Annual Financial Report is available online at www.countyofnewell.ab.ca
Cover Photo by K. Nielsen
Cover and other credited photos used throughout this document were submitted to the annual #myCountyofNewell photo contest by County of Newell Residents
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Photo by E. Van Steekelenburg
Page 3County of Newell - 2021 Annual Financial Report
TABLE OF CONTENTS
SECTION 1
Introduction
Vision, Mission, & Guiding Principles 7
County Profile 8
County Council 9
Organizational Chart 10
GFOA Canadian Award for Financial Reporting 11
Message from the Reeve 12
Report from the Controller 14
Agricultural Services Report 27
Municipal Services Report 33
Planning & Development Report 37
SECTION 2
Consolidated Financial Statements
Management’s Responsibility for the Consolidated Financial Statements 43
Independent Auditors’ Report 44
Consolidated Statement of Financial Position 46
Consolidated Statement of Financial Activities 47
Consolidated Statement of Change in Net Financial Assets 48
Consolidated Statement of Cash Flows 49
Notes to Consolidated Financial Statements 50
Schedule of Segmented Disclosures 66
SECTION 3Financial & Statistical Section
Demographics & Other Statistics 69
Expenses by Object 70
Expenses by Function 71
Revenues by Source 72
Capital Expenditures - by Group 73
Capital Expenditures - by Function 74
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Photo by K. Nielsen
Page 5County of Newell - 2021 Annual Financial Report
section 1
INTRODUCTION
Page 6
Photo by S. Plett
Page 7County of Newell - 2021 Annual Financial Report
VISION & MISSION STATEMENT
VISION STATEMENT
To encourage and support sustainable growth and quality of life.
MISSION STATEMENT
The County of Newell,
through leadership and policy,
provides services, structure and stability.
GUIDING PRINCIPLES
Seeking cooperation with individuals, governments, and organizations
Planning for the future growth and development of the municipality
Striving for the long-term financial stability of the municipality
Supporting the development and sustainability of a strong infrastructure
Providing services in a consistent and efficient manner
Preserving land for agricultural use
Promoting open communication between staff, Council and the public
Photo by A.M. Philipsen
County of Newell - 2021 Annual Financial ReportPage 8
COUNTY PROFILE
The County of Newell is a rural municipality located central to Calgary, Medicine Hat and Lethbridge with less than 190 kilometers of separation between each city. The County is a growing transportation hub with the TransCanada Highway #1 and Highway #36 intersecting within our boundaries. CP Rail’s mainline runs through the County, on its track from Montreal to Vancouver. Our geographical position provides ease of access to the oil sands to the north and the United States to the south, creating an ideal trade location for businesses.
The population of the Newell region, inclusive of our urban counterparts, is over 27,000. The largest urban communities in the region are the City of Brooks and the Town of Bassano. The County has a positive working relationship with our urban neighbors, which improves the quality of services provided to all of our residents.
The County is home to the Eastern Irrigation District (EID) which provides an extensive water supply, storage, and drainage network throughout the region. Water diverted from the Bow River at the Bassano Dam provides for irrigated agriculture, industrial, household and livestock use, as well as many recreational opportunities and enhanced environmental conditions.
The County has a dynamic and diverse economy driven by three pillars: Agriculture, Oil and Gas, and Tourism. There are approximately 500 primary agricultural producers in the County, and approximately 1,500 non-agricultural business enterprises within the Newell Region. The region boasts extraordinary crop quality with over 300,000 acres of irrigated farmland, 600,000 acres of cultivated dry land and 600,000 acres of native and improved rangeland. With a younger work force and average farm receipts in the range of $100,000 to $249,999, the region is home to some of the most profitable farms in Alberta.
The County has one of Alberta’s most active natural gas fields. There are roughly 20,400 wells in the County, which accounts for almost 9% of all wells in Alberta. The state of the North American natural gas industry, combined with the advanced age of many of the gas wells in the County, has resulted in reduced economic activity within the region and a reduction in
assessment values and related tax revenues.
A fourth sector, utility scale renewable energy facilities, is beginning to emerge within the County with solar projects at varying stages that range from application submitted through to fully constructed operational facilities.
Key tourism anchors include Lake Newell - one of
Canada’s largest man-made lakes, Dinosaur Provincial
Park - a UNESCO World Heritage Site, and recreation
activities as diverse as golfing, boating, camping,
fishing, hunting, and wildlife watching.
Population (2021): 7,465 Decrease in population (2016 to 2021): 0.8%Median Age: 38
Unemployment rate (2021): 8.6%Median Household Income (2018): $92,066 Number of Farms: 668Data from Statistics Canada 2021 Census
2019 Final Budget 5
Agriculture
Oil & Gas
Tourism
COUNTY PROFILE Population (2016): 7,524 Increase in population (2011 to 2016): 5.4% Median Age: 38 Unemployment rate: 7.1% Median Household Income (2015): $90,880 Number of Farms: 668 The County of Newell is a rural municipality located central to Calgary, Medicine Hat and Lethbridge with
less than 190 kilometers of separation between each
city. The County is a growing transportation hub with
the TransCanada Highway #1 and Highway #36
intersecting within our boundaries. CP Rail’s
mainline runs through the County, on its track from
Montreal to Vancouver. Our geographical position
provides ease of access to the oil sands to the north
and the United States to the south, creating an ideal
trade location for businesses.
The population of the Newell region, inclusive of our
urban counterparts, is over 24,000. The largest
urban communities in the region are the City of
Brooks and the Town of Bassano. The County has a
positive working relationship with our urban
neighbors, which improves the quality of services
provided to all of our residents.
The County is home to the Eastern Irrigation District
(EID) which provides an extensive water supply,
storage, and drainage network throughout the
region. Water diverted from the Bow River at the
Bassano Dam provides for irrigated agriculture,
industrial, household and livestock use, as well as
many recreational opportunities and enhanced
environmental conditions.
The County has a dynamic and diverse economy
driven by three pillars: Agriculture; Oil and Gas; and
Tourism. There are approximately 500 primary
agricultural producers in the County, and
approximately 1,500 non-agricultural business
enterprises within the County and its municipalities.
The region boasts extraordinary crop quality with
over 300,000 acres of irrigated farmland, 600,000
acres of cultivated dry land farming and 600,000
acres of native and improved rangeland. With a younger work force and average farm receipts in the
range of $100,000 to $249,999, the region is home
to some of the most profitable farmers in Alberta.
The County has one of Alberta’s most active natural
gas fields. There are roughly 30,000 wells in the
County, which accounts for half of all wells in
Alberta, and 37% of all wells in Canada.
Approximately 170 production and service
companies employ 4,000 to 5,000 people in the
energy sector in the region.
Key tourism anchors include Lake Newell - one of
Canada's largest man-made lakes, Dinosaur
Provincial Park - a UNESCO World Heritage Site, and
recreation activity as diverse as golfing, boating,
camping, fishing, hunting, and wildlife watching.
Top 10 Taxpayers:
1. Torxen Energy Ltd.
2. Canadian Natural
Resources Ltd
3. JBS Food Canada ULC.
4. Nova Gas Transmission
Ltd.
5. ATCO Electric Ltd.
6. Altalink Management Ltd.
7. Cardinal Energy Ltd.
8. Cor4 Oil Corp.
9. Foothills Pipelines Ltd.
10. Inter Pipeline Ltd.
County Hamlet Populations
Bow City 16
Cassils 22
Gem 29
Lake Newell Resort 437
Millicent 2
Patricia 88
Rainier 21
Rolling Hills 263
Scandia 169
Tilley 335
Total:1382
Data from 2020 Municipal Census
County of Newell - 2021 Annual Financial Report Page 9
COUNTY COUNCIL
Councillor Dan Short
(403) 363-0538
shortd@newellmail.ca
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Councillor Holly Johnson
(403) 363-4701
johnsonh@newellmail.ca
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Councillor Greg Skriver
(403) 409-4281
skriverg@newellmail.ca
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Councillor Adena Skanderup
(403) 633-2224
skanderupa@newellmail.ca
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Councillor Lynette Kopp
(403) 363-5677
koppl@newellmail.ca
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Councillor Kelly Christman
(403) 793-0014
christmank@newellmail.ca
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Councillor Ellen Unruh
(403) 793-3369
unruhe@newellmail.ca
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Councillor Amanda Philpott
(403) 362-1949
philpotta@newellmail.ca
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Reeve Arno Doerksen
(403) 363-0253
doerksena@newellmail.ca
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Councillor Neil Johnson
(403) 793-4206
johnsonn@newellmail.ca
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County of Newell - 2021 Annual Financial ReportPage 10
ORGANIZATIONAL CHART
REEVE
&
COUNCIL
CHIEF
ADMINISTRATIVE
OFFICER
EXECUTIVE
ASSISTANT
MANAGER OF
OPERATIONS
MANAGER OF
AGRICULTURAL
SERVICES
MUNICIPAL
ENFORCEMENT
SUPERVISOR
MANAGER OF PLANNING,
DEVELOPMENT & ENGINEERING
DIRECTOR OF
AGRICULTURAL
SERVICES
DIRECTOR OF
INFORMATION
& TECHNOLOGY
DIRECTOR OF
MUNICIPAL
SERVICES
DIRECTOR OF
CORPORATE
SERVICES MANAGER OF
CORPORATE
SAFETY
SERVICES
RURAL FIRE &
EMERGENCY
SERVICES
COORDINATOR
MANAGER
OF
FINANCE
County of Newell - 2021 Annual Financial Report Page 11
GFOA CANADIAN AWARD FOR FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the County of Newell for its annual financial report for the fiscal year ended December 31, 2020. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports.
In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual financial report, whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles and demonstrate an effort to clearly communicate the municipal government’s financial picture, enhance an understanding of financial reporting by municipal governments, and address user needs.
A Canadian Award for Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Canadian Award for Financial Reporting program requirements, and we are submitting it to the GFOA.
County of Newell - 2021 Annual Financial ReportPage 12
MESSAGE FROM THE REEVE
The pandemic continued through 2021, and along with it the issues of economic adversity and societal stress. As I write this in the early months of 2022, the residents of the County of Newell and the world are seeing some relief from COVID-19 restrictions and look forward to the better days on the horizon. Let’s continue to respect each other, support local businesses, and maintain the strong sense of community that will carry us through what I hope will be less interesting times ahead.
After over a year of meeting online, Council returned to Council Chambers with the Budget Planning Meeting on July 5, 2021. While some adjustments had to be made in the fall when the COVID-19 restrictions were reinstated, we were able to continue meeting in person by following the recommended safety protocols and adjusting the seating arrangements. This was very beneficial after the 2021 Municipal Election which saw 8 out of 10 new Councillors elected because, while technology allows meetings to continue, online meetings make it difficult to create the human connections you can only get by meeting face-to-face. We continue to livestream regular MPC and Council meetings and post the recordings to the County’s YouTube channel to facilitate public engagement.
In the early part of 2021, the County embarked on a public education initiative, using the local newspapers as well as our own website and social media channels to provide education to our ratepayers on a variety of topics including snow removal, weed control, and how tax revenue is allocated in our annual budgets. While it is difficult to gauge the effectiveness of print communications, our social media statistics showed increased levels of engagement with our followers – our information was reaching the intended targets and reception was positive, for the most part.
An application was submitted for funding under the Municipal Stimulus Program for projects such as roads, bridges, and recreation. One of the conditions of this grant was that these projects would not otherwise proceed without support from this program. After much consideration, the projects selected were a continuation of the paved pathway past the County facilities to Township Road 182 and upgrades to Emerson Bridge Park. Both projects fall under the category of recreation and will be potentially beneficial to many residents within the region.
There have been discussions in recent years regarding a pathway to Lake Newell. Progress began last year with the Councils of the City of Brooks and the County of Newell each committing $700,000 to extend the pathway from where the County’s portion ends at Township Road 182 to Kinbrook Island Park. The work is just starting but fundraising for the public portion has begun and there is a lot of excitement about what will be 12km of pathway through our prairie landscape. Watch for future updates regarding the Kinbrook Connection Pathway and how you can be a part of this legacy project!
With pandemic restrictions limiting travel, camping was a popular option for those looking to get away for a vacation. A limited number of campsites were offered for seasonal rental at the Emerson Bridge Park Campground for the first time in 2021. It turned out to be a popular option, so seasonal sites were offered again this year. At the time I am writing this, most of them have been reserved. Our Agricultural Services Department takes pride in the campground and do a great job maintaining and upgrading this hidden gem that is used by both local campers and visitors from further away. We continue to make improvements to Emerson Bridge Park, so look forward to more updates next year. Photo by D. Wiebe
County of Newell - 2021 Annual Financial Report Page 13
MESSAGE FROM THE REEVE
At the beginning of 2021, the County’s Planning & Development Department, ISL Engineering, and a working committee of three Councillors began the process of updating our Land Use Bylaw, the document that regulates local land use and development for the County. Such a bylaw requires public consultation, which was achieved through a series of virtual open house meetings in order to comply with COVID-19 safety protocols. Amendments were made to the bylaw as a result of feedback received from neighbouring municipalities and the bylaw was passed on September 23, 2021. In the spirit of the Red Tape Reduction concept that the provincial government has been following, this document has been streamlined and is easier to understand for landowners who wish to develop their property.
After nearly 35 years of service in municipal government and 14 years at the County of Newell, Kevin Stephenson retired from his position as Chief Administrative Officer. Council appointed Matt Fenske, the County’s Manager of Finance, to the position of CAO on February 25, 2021.
The Government of Alberta published the long-awaited Helicopter Emergency Medical Services Review on June 22, 2021. The report contained a variety of recommendations for helicopter emergency medical services, including a recommendation for a single service provider. The County has provided annual funding to both HALO and STARS for several years - $1 and $2 per capita, respectively. Following a presentation by HALO, Council approved an increase in annual funding for HALO in the amount of $50,000 beginning in 2022. We hope that the provincial government will recognize the valuable service provided to southern Alberta by HALO by granting them annual, ongoing funding.
Strong winds at the end of March 2021 caused some significant soil erosion in some regions of the County. The winds moved soil from farm fields into ditches, potentially restricting drainage. The Soil Erosion/Degradation Advisory Committee was established, including landowners and producers, to create a Soil Conservation policy that provides guidelines for dealing with soil erosion. Agricultural Services staff surveyed all the roads to determine the extent of the problem and identify which fields the soil originated from. Council approved funding that allowed Municipal Services to proceed with cleaning out the ditches in the most heavily impacted areas. Communication continued throughout the summer with affected landowners to raise awareness
The grass fire started near Patricia on July 29 required an extended response of several area and neighboring fire departments and burned close to 5000 acres. More than 250 firefighters and neighbors responded to the emergency including several flare-ups that occurred in the following days. This situation highlights the importance of having dedicated teams of volunteer fire fighters in our communities. We acknowledge and express our thanks to the many volunteers who responded to this situation from within our County and our neighboring municipalities!
After collecting dedicated recreation funds through the mill rate for several years and having engaged in extensive discussions on the matter, Council adopted policy 2021-PAD-075 which provides a framework for allocating recreation funding for capital projects. Representatives from the recreation groups throughout the County were involved in a community engagement initiative that gave them direct input in the development of this policy. The policy outlines various categories and criteria for recreation facility projects.
Collaboration with our municipal partners nets increased benefits for residents of our region and we enthusiastically thank the County’s partners for their continued work towards keeping our region vibrant and sustainable! As always, please feel free to contact your Councillors or Staff by phone or email. Key contacts are available on our website www.countyofnewell.ab.ca. It remains important to get accurate information as required, have your questions answered, or report a concern.
County of Newell - 2021 Annual Financial ReportPage 14
REPORT FROM THE CONTROLLER
Introduction
The annual financial report provides readers with an opportunity to assess the County’s financial activities and
available resources. It also provides an opportunity to analyze and comment on the principal features of the
financial information contained in the 2021 audited Consolidated Financial Statements and to highlight key
financial results that occurred during the year. Management at the County of Newell is responsible for the
information contained in the annual financial report.
Photo by S. Plett
County of Newell - 2021 Annual Financial Report Page 15
REPORT FROM THE CONTROLLER
2021 Financial Highlights
Consolidated Statement of Financial PositionThe County improved its already strong financial position in 2021. Financial assets increased by $12.7 million while liabilities decreased by $1.2 million resulting in an overall increase in net financial assets of $13.8 million. The allowance for uncollectible taxes increased by $108 thousand due to pursuing legal actions with oil and gas companies that are unlikely to settle their balances owing. Non-financial assets, which consist primarily of tangible capital assets and inventory for consumption, increased by $670 thousand. The changes in net financial assets and non-financial assets resulted in a net $14.5 million increase in the accumulated surplus.
Consolidated Statement of Financial ActivitiesOverall revenues were $462 thousand higher than projected coming in at 101.2% of budget. Noteworthy items on the revenue side included return on investments that was $1.4 million higher than budget, and special levies that were $2.1 million lower due to a local improvement that has been deferred to 2022, and well drilling tax revenue being reduced to nil after the Government of Alberta cancelled the program that generated a revenue of $508 thousand in 2020.
Expenses were $3 million lower than projected (89.7% of budget). Staffing costs were under budget due to positions which were budgeted for but not hired during the year. Contracted services were under budget primarily due to lower than expected repairs and maintenance on roads and buildings. Materials, goods, supplies and utilities were under budget primarily due to lower than expected repairs and maintenance costs on vehicles and equipment, bridge file work which was not completed, and a reduction in the use of maintenance materials such as gravel, chemical and calcium. In 2021, Council approved spending for a soil erosion incentive which amounted to an additional spending of $177 thousand under contracted services, materials, goods, and supplies. Transfers to organizations were lower than budgeted as funding costs pertaining to Intermunicipal Collaboration Framework (ICF) Agreements finalized in 2020 were lower than expected. Other expenditures were higher than budget due to the write off of additional uncollectible oil and gas property tax accounts and were lower than the previous year as there was a reduction in the discount rate that was offered for the early payment of property taxes in 2021.
The County also transferred $273 thousand to the Province for road widening and signal installation at the 15th Avenue and 2nd Street intersection located on the North City of Brooks/County of Newell boundary, plus an additional $390 thousand for policing costs.
The County ended the year with an Annual Surplus of $14.5 million.
Consolidated Statement of Change in Net Financial AssetsNet financial assets increased by $13.8 million, for a total of $112.7 million in net financial assets at the end of the year. This indicates the County can afford to settle its liabilities and is positioned well for replacing or rehabilitating its tangible capital assets as they reach the end of their useful lives.
Consolidated Statement of Cash FlowsCash and cash equivalents decreased by $6.5 million in 2021. Operations provided cash of $24.4 million, $7.8 million was used to purchase tangible capital assets, $20.6 million was provided by investing activities and $2.5 million was used to repay long term debt.
County of Newell - 2021 Annual Financial ReportPage 16
REPORT FROM THE CONTROLLER
MANAGEMENT REPORTING & CONTROL
The major components of the County’s financial management and control programs include the budget process, accounting procedures, external audit, and various policies which are described below.
Budget ProcessOn an annual basis, Council considers a proposed operating budget and a ten-year capital forecast and adopts the operating and capital budgets for the coming year. The budget process involves Council, Department Heads, Staff and input from the public. Council approves the budget taking into account current economic conditions, provincial policy changes and service needs within the County. It should be noted that under provincial legislation sufficient revenues must be raised to meet all budgeted expenditures.
After the budget is adopted by Council, expenditures are controlled against budget by formal policies and financial systems designed specifically to prevent budget overruns.
Accounting ProceduresThe County’s accounting system and related internal controls are designed to provide reasonable assurance that financial records are complete and accurate and that assets are safeguarded against loss from unauthorized use or disposition. The County’s Purchasing and Budget Variance policies ensure that controls and reporting requirements are appropriate. Generally accepted accounting principles for local governments are adhered to.
External Audit Council is required by the Municipal Government Act to engage independent auditors to express an opinion as to whether the County’s financial statements present fairly, in all material respects, the County’s operating results and financial position. The auditors have full and free access to all County records and they meet periodically with staff to discuss matters arising from the audit or from new policies and procedures. The auditors also provide the County with a management letter that comments on internal controls.
While Council engages an independent auditor to express an opinion on the financial statements, the County’s management is responsible for the preparation of the financial statements and the integrity and objectivity of the financial information and representations contained in the financial statements.
Purchasing PolicyThe County ensures that consistent procedures are followed for purchases through Purchasing Policy 2018-PAD-051 which sets expenditure limits for the County. The policy ensures that items purchased have been approved through the budget process or by separate resolution of Council.
Photo by G. Volek
County of Newell - 2021 Annual Financial Report Page 17
Investment Policy
The County’s excess funds are invested in accordance with Investment Policy 2021-PAD-032. This policy has
as its objectives the preservation of capital, maintenance of liquidity and the realization of a competitive rate of
return. Municipal investments are governed by restrictive legislation under the Municipal Government Act. The
County’s investment policy meets all of these requirements.
Restricted Surplus Policy
The County has established specific restricted surplus funds, through Restricted Surplus Policy 2017-PAD-062,
to provide for emergent financial needs, stabilize tax rates, set aside funds for the replacement of vehicles,
machinery, equipment, infrastructure and facilities and to minimize its financing needs. Maintaining financial
health and stability is the guiding principle behind this policy.
FINANCIAL INDICATORS DISCUSSION & ANALYSIS
The 2021 Consolidated Financial Statements are prepared in compliance with Public Sector Accounting Standards
(PSAB). While the consolidated financial statements provide a snapshot of the County’s financial position at its
fiscal year end (December 31) and the results of its operations, and changes in both cash flow and net assets
for the preceding year, the consolidated financial statements do not provide a complete indication of the financial
health of the County nor indicate how well it is performing in relation to its economic and fiscal environment.
The Annual Financial Report seeks to expand on and explain information in the financial statements by applying
PSAB’s Statement of Recommended Practices (SORPs), specifically SORP-4 Indicators of Financial Condition.
This information may help financial statement users better understand the risks facing the County in maintaining
the programs and services it currently provides, as well as the policy and operational decisions it must make in
light of its financial health.
This SORP does not form part of the generally accepted accounting principles (GAAP) and there is no requirement
for governments to implement its recommendations. Although there are numerous indicators to assess a
government’s financial condition, SORP-4 recommends that, at a minimum, indicators related to sustainability,
flexibility and vulnerability be considered. Definitions of these indicators follow, as well as a selection of indicators
related to each.
REPORT FROM THE CONTROLLER
Photo by B. Commodore
County of Newell - 2021 Annual Financial ReportPage 18
SUSTAINABILITY
Sustainability measures the ability of the County to maintain its existing programs and services, including maintaining its financial obligations to creditors, without increasing its debt or raising taxes. The following indicators have been selected to assess sustainability.
Annual Surplus or Deficit This annual result indicates the extent to which the County’s revenue is more than its expenses during that year. A surplus means revenues exceed expenses while a deficit may indicate the County has not lived within its means. Long-term financial sustainability is dependent upon ensuring that on average, over time, expenses are less than revenues. This requires current taxpayers to fully meet the cost of services.
The presence of a surplus does not necessarily represent financial sustainability. When a surplus is achieved, the amount is available for capital expenditures over and above amortization expense. Amortization expense is based on historic cost and does not reflect the increased cost of future asset replacements. Taking future asset replacement costs into account in determining the appropriate level of surplus is a critical step toward financial sustainability.
REPORT FROM THE CONTROLLER
The 2017 deficit was driven by the transfer of water infrastructure assets with a value of $33.3 million to Newell Regional Services Corporation (NRSC) during the year. These assets were being held in trust for NRSC as part of the grant funded Regional Water project. NRSC issued 2,986 Class H preferred shares with a value of $2.98 million to the County for its contribution.
$(25)
$(20)
$(15)
$(10)
$(5)
$-
$5
$10
$15
$20
2017 2018 2019 2020 2021
Mi
l
l
i
o
n
s
Annual Surplus
County of Newell - 2021 Annual Financial Report Page 19
REPORT FROM THE CONTROLLER
Financial Assets-to-Liabilities This indicator shows the extent to which the County’s future revenues will be required to pay for past transactions or events. A ratio greater than one indicates that financial assets are sufficient to meet obligations and to finance future operations while a ratio less than one may mean a reliance on future revenues or increasing debt to pay for past decisions.
This ratio increased by 2.03 in 2021. The County remains in a very strong financial position with $10.92 in financial assets for every $1.00 of financial liability. These financial assets support the County’s long-term financial plan for replacing and rehabilitating its capital assets as they reach the end of their useful lives.
3.54
4.49
7.35
8.89
10.92
-
2.00
4.00
6.00
8.00
10.00
12.00
2017 2018 2019 2020 2021
Financial Assets-to-Liabilities
Photo by D. Wiebe
County of Newell - 2021 Annual Financial ReportPage 20
REPORT FROM THE CONTROLLER
Taxes Receivable as a % of Taxes Levied
The following chart reflects the total uncollected property taxes as a percentage of the total tax levy. Every year, a percentage of property owners are unable to pay property taxes for a variety of reasons. If this percentage increases over time, it may indicate an overall decline in the County’s economic health. Additionally, as uncollected property taxes rise, liquidity decreases.
COUNTY OF NEWELL
INDICATORS OF FINANCIAL CONDITION
TAXES RECEIVABLE AS A % OF TAXED LEVIED
DECEMBER 31, 2021
2017 2018 2019 2020 2021
Total Tax Levy 45,383,948 46,506,415 43,360,625 44,068,952 42,928,998
Less: Requisitions 13,105,572 13,523,801 13,707,067 13,249,200 12,101,861
Net Municipal Property Taxes 32,278,376 32,982,614 29,653,558 30,819,752 30,827,137
Taxes Receivable (before allowance)
Current 703,962 819,359 998,879 694,095 678,790
Arrears 708,715 1,009,363 981,684 868,882 874,591
1,412,677 1,828,722 1,980,564 1,562,977 1,553,381
Taxes Receivable as a %
of the Current Levy
Current 1.55%1.76%2.30%1.58%1.58%
Arrears 1.56%2.17%2.26%1.97%2.04%
$ Taxes Collected - Current Year 44,679,986 45,687,056 42,361,746 43,374,857 42,250,208
% Taxes Collected - Current Year 98.45%98.24%97.70%98.42%98.42%
Taxable Assessment 4,217,745,390 4,235,121,120 4,283,662,880 3,987,585,900 3,873,087,590
Combined Municipal Tax Rates
Residential 4.4570 4.4170 4.4698 4.4327 4.2276
Farmland 4.8499 5.1761 5.9261 6.7299 7.5248
Small Business 8.5507 8.7306 8.5874 8.0769 6.8983
Non-residential 8.5507 8.7306 8.5874 8.7038 8.9981
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2017 2018 2019 2020 2021
Taxes Receivable as a % of the Taxes Levied
Current Arrears
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2017 2018 2019 2020 2021
Taxes Receivable as a % of Taxes Levied
Current Arrears
County of Newell - 2021 Annual Financial Report Page 21
FLEXIBILITY Flexibility is the degree to which the County can change its debt burden or raise taxes to respond to rising commitments. Increasing debt and taxation reduces flexibility and the County’s ability to respond to changing circumstances.
Debt Servicing Costs-to-Revenues The ratio of debt servicing costs-to-revenues indicates the amount of current revenue that is required to service past borrowing decisions and, as a result, is not available for programs and services.
REPORT FROM THE CONTROLLER
COUNTY OF NEWELL
INDICATORS OF FINANCIAL CONDITION
DEBT SERVICING COSTS-TO-REVENUES
DECEMBER 31, 2021
2017 2018 2019 2020 2021
Debt servicing costs 6,367,116 5,534,150 3,861,241 2,623,837 1,927,345
Revenues 38,131,628 40,216,861 41,678,811 38,375,854 38,375,854
Ratio 16.70% 13.76% 9.26%6.84%5.02%
Target 2017 2018 2019 2020 2021
Debt Service to Revenue %< 20%16.70%13.76%9.26%6.84%4.91%
Debt to Revenue %< 120%54.57%37.01%23.15%15.63%8.96%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2017 2018 2019 2020 2021
Debt Servicing Costs as a Percentage of Revenue0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2017 2018 2019 2020 2021
Debt Servicing Costs as a Percentage of Revenue
County of Newell - 2021 Annual Financial ReportPage 22
Debt Limits and Debt Payments The County is limited in the amount of debt that it can incur beyond the limitations specified in Alberta Regulation 255/00. The maximum allowable debt the County could hold within this regulation is approximately $58.8 million. The County held outstanding debt balances representing 6.0% of this maximum allowable amount at the end of 2021. This leaves the County with approximately $55.3 million of borrowing room.
REPORT FROM THE CONTROLLER
Debt per capita is expected to increase in 2022 as the County plans to borrow funds to finance the North Headgates improvement project as well as Phase 2 of the Rural Water Project.
COUNTY OF NEWELL
INDICATORS OF FINANCIAL CONDITION
DEBT LIMITS AND DEBT PAYMENTS
DECEMBER 31, 2021
55,306,183
2017 2018 2019 2020 2021
Debt limit
Maximum allowable debt 57,197,442 60,325,292 62,518,217 57,563,781 58,820,313
Total debt 20,810,186 14,882,255 9,648,333 5,996,703 3,514,130
Percentage used 36.4% 24.7% 15.4% 10.4% 6.0%
Maximum Allowable Annual Debt Payment
Maximum allowable annual debt payment 9,532,907 10,054,215 10,419,703 9,593,964 9,803,386
Annual payments on existing debt 6,367,116 5,534,150 3,861,241 2,623,837 1,927,345
Percentage used 66.8%55.0% 37.1% 27.3% 19.7%
Debt Per Capita 2,766 1,978 1,282 797 471
Population*7,524 7,524 7,524 7,524 7,465
* Source: 2010 - 2015 Alberta Municipal Affairs Statistics Profile; 2016 Statistics Canada; 2021 Statistics Canada
28497691 28076412 28497691 -421279 101.5%
$-
$10
$20
$30
$40
$50
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$70
2017 2018 2019 2020 2021
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Debt Limits -County
Maximum allowable debt Total debt
$-
$10
$20
$30
$40
$50
$60
$70
2017 2018 2019 2020 2021
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Debt Limits -County
Maximum allowable debt Total debt
County of Newell - 2021 Annual Financial Report Page 23
Restricted SurplusRestricted surplus funds are included as part of the County’s accumulated surplus. Restricted surplus funds are a critical component of the County’s long-term financing and capital plan. The County’s Restricted Surplus Policy 2017-PAD-062 establishes specific restricted surplus funds to:
Stabilize tax rates in the face of variable and uncontrollable factors (consumption, interest rates, unemployment
rates, changes in subsidies)
Provide financing for one-time or short-term requirements without permanently impacting the tax and utility rates
Make provisions for replacement or acquisitions of assets and infrastructure that are currently being consumed
and amortized
Avoid spikes in capital plan funding requirements by reducing the reliance on long-term debt borrowings
Provide flexibility to manage debt levels and protect the municipality’s financial position
Provide for future payment on liabilities incurred in the current year
Provide a source of internal financing
Ensure adequate cash flows
REPORT FROM THE CONTROLLER
Restricted surplus offers liquidity which enhances the County’s flexibility in addressing operating requirements and in permitting the County to temporarily fund capital projects internally, allowing it time to access debt markets and take advantage of favourable conditions. The level of restricted surplus funds to retain may vary for a number of reasons including:• A change in services provided by the County• Age and condition of infrastructure, fleet equipment and vehicles supporting County operations• Economic conditions and projections • Internal debt and restricted surplus policies Restricted Surplus Policy 2017-PAD-062 specifies minimum balances to be maintained for the restricted surplus funds listed below. The County is in compliance with this policy as at December 31, 2021.
COUNTY OF NEWELL
INDICATORS OF FINANCIAL CONDITION
RESTRICTED SURPLUS BALANCE
DECEMBER 31, 2021
2017 2018 2019 2020 2021 Fund description
Balance at Dec. 31, 2021 Minimum Balance Required % of minimum balance held accumulated amortization % of accumulated amortization funded min balance standard
Infrastructure 62,235,994 18,181,548 342%77,869,668 80%25% of accumulated amortizationRestricted Surplus 86,131,612 90,900,369 96,830,154 99,553,618 110,394,614 Vehicles, Machinery & Equipment 13,283,798 10,477,058 127%10,094,605 132%100% of accumulated amortization
Facilities 3,980,115 2,043,528 195%4,491,540 89%50% of facilities accumulated amortization
Stabilization 5,000,000 2,807,641 178%n/a n/a 10% of current year operating budget expensesFund Description 2017 2018 2019 2020 2021 Fire Apparatus 4,435,703 250,000 1774%n/a n/a $250,000
Paving 127,805 1,851,997 3,971,925 5,861,505 7,783,329 Infrastructure 38,522,787 46,001,809 49,231,522 53,090,122 62,235,994 Total 88,935,610 33,759,775 Future projects 19,513,713 15,711,327 10,232,443 6,447,953 5,567,630 Vehicles, Machinery & Equipment 9,478,581 10,972,277 12,129,527 12,177,665 13,283,798 Regional Enhancement 4,428,874 2,258,874 2,258,874 2,151,337 1,285,298 Stabilization 5,400,277 3,150,000 5,000,000 5,000,000 5,000,000 Facilities 2,893,968 3,114,988 3,357,239 3,575,932 3,980,115
Fire Apparatus 3,156,346 3,756,959 4,453,509 4,629,076 4,435,703 Recreation 1,417,008 2,825,027 4,233,046 5,202,501 5,504,273
Tilley 50,662 50,662 50,662 50,662 50,662 Unexpended Budget Appropriation 1,141,591 1,206,449 1,911,408 1,366,866 1,267,813
Total 86,131,612 90,900,368 96,830,154 99,553,618 110,394,614
Unrestricted surplus 1,288,951 3,771,158 8,129,921 8,059,067 8,473,107
Equity in TCA 182,253,791 184,347,313 185,685,093 187,580,976 190,830,533
$-
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$40
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$120
2017 2018 2019 2020 2021
Mi
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Restricted Surplus Balance
-
20
40
60
80
100
120
2017 2018 2019 2020 2021
Mil
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Restricted Surplus Funds
Recreation
Future projects
Unexpended Budget Appropriation
Tilley
Fire Apparatus
Facilities
Stabilization
Regional Enhancement
Vehicles, Machinery & Equipment
Infrastructure
Paving
COUNTY OF NEWELL
INDICATORS OF FINANCIAL CONDITION
RESTRICTED SURPLUS BALANCE
DECEMBER 31, 2021
20172018201920202021 Fund description
Balance at
Dec. 31, 2021
Minimum Balance
Required
% of minimum
balance held
accumulated
amortization
% of accumulated
amortization funded min balance standard
Infrastructure 62,235,994 18,181,548 342%77,869,668 80%25% of accumulated amortizationRestricted Surplus86,131,612 90,900,369 96,830,154 99,553,618 110,394,614 Vehicles, Machinery & Equipment 13,283,798 10,477,058 127%10,094,605 132%100% of accumulated amortization
Facilities 3,980,115 2,043,528 195% 4,491,540 89%50% of facilities accumulated amortization
Stabilization 5,000,000 2,807,641 178%n/a n/a 10% of current year operating budget expensesFund Description20172018201920202021 Fire Apparatus 4,435,703 250,000 1774%n/a n/a $250,000
Paving127,805 1,851,997 3,971,925 5,861,505 7,783,329
Infrastructure38,522,787 46,001,809 49,231,522 53,090,122 62,235,994 Total 88,935,610 33,759,775 Future projects19,513,713 15,711,327 10,232,443 6,447,953 5,567,630
Vehicles, Machinery & Equipment9,478,581 10,972,277 12,129,527 12,177,665 13,283,798
Regional Enhancement4,428,874 2,258,874 2,258,874 2,151,337 1,285,298 Stabilization 5,400,277 3,150,000 5,000,000 5,000,000 5,000,000
Facilities2,893,968 3,114,988 3,357,239 3,575,932 3,980,115 Fire Apparatus3,156,346 3,756,959 4,453,509 4,629,076 4,435,703
Recreation1,417,008 2,825,027 4,233,046 5,202,501 5,504,273
Tilley50,662 50,662 50,662 50,662 50,662 Unexpended Budget Appropriation1,141,591 1,206,449 1,911,408 1,366,866 1,267,813
Total86,131,612 90,900,368 96,830,154 99,553,618 110,394,614
Unrestricted surplus1,288,951 3,771,158 8,129,921 8,059,067 8,473,107
Equity in TCA182,253,791 184,347,313 185,685,093 187,580,976 190,830,533
$-
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2017 2018 2019 2020 2021
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Restricted Surplus Balance
-
20
40
60
80
100
120
2017 2018 2019 2020 2021
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Restricted Surplus Funds
Recreation
Future projects
Unexpended Budget Appropriation
Tilley
Fire Apparatus
Facilities
Stabilization
Regional Enhancement
Vehicles, Machinery & Equipment
Infrastructure
Paving
County of Newell - 2021 Annual Financial ReportPage 24
Tangible Capital Assets
The County’s tangible capital assets (TCA) increased by a net $767 thousand in 2021. Key changes included new asset acquisitions of $8.5 million, $7.1 million in amortization expense and asset disposals with a net book value of $611 thousand.
Significant acquisitions included: $2.70 million – Road reconstruction $800 thousand – Vehicles $768 thousand – Bridge work $658 thousand – Fire Apparatus $446 thousand – Machinery and equipment $221 thousand – EID Drainage Partnership $144 thousand – IT Infrastructure
There were no tangible capital assets that were contributed during the year.
Net Book Value of Tangible Capital Assets-to-Cost of Tangible Capital Assets
Net book value of TCA compared to total cost of TCA measures the extent to which the estimated useful lives of the County’s tangible capital assets are available to provide its products and services.
As at December 31, 2021 approximately 68% of the useful life of the County’s assets remains available to provide future services.
REPORT FROM THE CONTROLLER
COUNTY OF NEWELL
INDICATORS OF FINANCIAL CONDITION
NBV OF TCA-TO-COST OF TCA
DECEMBER 31, 2021
2017 2018 2019 2020 2021
NBV OF TCA 202,274,436 199,229,568 195,333,426 193,577,678 194,344,664
COST OF TCA 272,222,982 275,077,808 277,753,203 280,867,985 286,800,477
NBV OF TCA-TO-COST OF TCA 74.30%72.43%70.33%68.92%67.76%
Increase in TCA 24,677,902- 3,044,868- 3,896,142- 1,755,748- 766,986
2021 2021
Cost NBV % NBV to Cost
Land 5,368,054 5,368,054 100%
Land improvements 2,138,620 779,898 36%
Buildings 21,124,038 17,991,220 85%
Roadways 142,813,102 75,915,380 53%
Water systems 62,898,521 56,054,222 89%
Wastewater systems 11,741,045 9,435,243 80%
Storm systems 16,147,415 14,388,007 89%
Electrical systems 209,594 147,158 70%
Machinery & equipment 11,129,817 4,101,990 37%
Vehicles 7,477,100 4,410,322 59%
Work in progress 5,753,169 5,753,169 100%
TOTAL 286,800,477 194,344,664
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2017 2018 2019 2020 2021
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Net Book Value of TCA-to-Cost of TCA
NBV OF TCA COST OF TCA
36%
85%
53%
89%80%89%
70%
37%
59%
50%
75%
100%
50
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125
150
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Net Book Value of TCA-to-Cost of TCA (2021)
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2017 2018 2019 2020 2021
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Net Book Value of TCA-to-Cost of TCA
NBV OF TCA COST OF TCA
36%
85%
53%
89%80%89%
70%
37%
59%
0%
25%
50%
75%
100%
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125
150
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Net Book Value of TCA-to-Cost of TCA (2021)
NBV Cost % NBV to Cost
VULNERABILITY
Vulnerability is the degree to which the County becomes dependent on, and therefore vulnerable to, sources of funding outside its control or influence. The lower the County’s own-source revenue is, the more it relies on fiscal decisions of others.
Government Transfers-to-Total RevenueThis indicator demonstrates the level of government transfers compared to total revenues. The higher the percentage, the more reliance the County puts on receipt of funds from other levels of government. These transfers are dependent on policy decisions which are outside the control of the County.
The inset chart illustrates that a significant portion of total revenues in some years are attributable to government transfers. It is important to note that the majority of these government transfers have been used for financing major capital projects. The County’s ability to undertake such projects is dependent in large part on grant funding from other levels of government.
REPORT FROM THE CONTROLLER
COUNTY OF NEWELL
INDICATORS OF FINANCIAL CONDITION
GOVERNMENT TRANSFERS-TO-TOTAL REVENUE
DECEMBER 31, 2021
2017 2018 2019 2020 2021
Government transfers for capital 173,520 99,880 842,805 1,040,021 2,791,240
Government transfers for operating 638,510 685,888 4,149,246 600,370 1,455,236
Total transfers 812,030 785,768 4,992,051 1,640,391 4,246,476
Total revenue 38,305,148 40,211,868 42,521,616 39,415,875 42,010,555
Government transfers-to-total revenue 2.1%2.0%11.7%4.2%10.1%
Transfers for capital-to-total transfers 21.4% 12.7% 16.9% 63.4% 65.7%
Transfers for operating-to-total transfers 78.6% 87.3% 83.1%36.6% 34.3%
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
2017 2018 2019 2020 2021
Government Transfers-to-Total Revenue
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2017 2018 2019 2020 2021
Transfers for Capital vs. Operating
Transfers for operating-to-total transfers
Transfers for capital-to-total transfers
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
2017 2018 2019 2020 2021
Government Transfers-to-Total Revenue
It is management’s opinion that the County is not exposed to significant risk in terms of its reliance on government
transfers for operating to support its products and services.
Respectfully Submitted,
Stephanie Hanson, CPA, CGA
Controller
April 7, 2022
Page 26
Photo by S. Martens
County of Newell - 2021 Annual Financial Report Page 27
AGRICULTURAL SERVICES REPORT
Agricultural Service Boards (ASB) became an Alberta reality in 1945. During all of the years following, your ASB continued to support the agriculture industry as best it could and completed the programming you will read about today.
Your ASB’s mission is:
“Working together we strive to guide viable growth and sustainability in the County of Newell by implementing programs in areas of weed, pest and soil control as well as programs focused on sound agronomics and environmental stewardship”
Our Core values include:• Creating Partnerships• Being Proactive• Being Client Focused• Being Credible• Encouraging Landowner Cooperation• Encouraging Resource Conservation
Programming revolving around weed, pest, and soil control are still the priority, but a combination of environmental programs and vegetation management are also part of the mix. Outlined in this report are the highlights.
Weed ControlThe ASB manages vegetation in municipal rights of ways, municipally owned land, hamlet open spaces, and within our partner municipalities. Regulated weed species under the Weed Control Act are top priority and present a constant battle. For this reason, the ASB employs 4 Vegetation Management Technicians to aid ratepayers in their control efforts as well as identify risks and maintain established infestations. Invasive species spread via transportation corridors and waterways and the ASB keeps a close eye on those vectors.
You have access to some well-trained weed control and identification staff. If you have tough to control weeds or are having trouble identifying threats, please ask them for help.
2021 programming saw weed populations controlled on:
a. CP line (66 miles)• GPS/inspect/controlb. Road network • 695 miles sprayed – 503 miles of local roads and 192 miles of highways (under contract), selective control• 90 miles sprayed – local road shoulder, non-selective control• 8 miles sprayed – non-selective control for constructionc. Bow River (60 miles of control work)• spraying and picking d. Inspected EID delivery system (200 miles of open canals and 4 reservoir shorelines via boat)e. 500 acres controlled under the Private Weed Control policy f. Controlled weeds in 11 Grasslands Public School grounds (cost recovery)g. Controlled weeds in parks, municipally owned land, and cemeteries (Bassano, Brooks and Duchess - cost recovery)h. monitored released root weevil (Mogulones crucifer) populations for controlling Hound’s tongue
Major weeds of concern include but are not limited to: Scentless Chamomile, Black Henbane, Downy Brome, Baby’s Breath, Yellow Toadflax, Canada Thistle, Burdock, Diffuse and Spotted Knapweed, Tall Buttercup, and Hound’s Tongue.
County of Newell - 2021 Annual Financial ReportPage 28
AGRICULTURAL SERVICES REPORT
Pest Control
Over the years that your ASB has served you, the species of pests may have changed but monitoring and
reporting have remained a constant.
This season the ASB surveyed:
• 309 canola fields during flowering for signs of Clubroot
• 52 locations for grasshopper populations
• 825 sites for Coyote RAI (Relative Abundance Index)
• 8 potato fields for signs of Bacterial Ring Rot
• 2 corn fields for signs of Fusarium graminearum
• 10 wheat fields for signs of Fusarium graminearum
The ASB also offers programming and sell pest control products to help mitigate the effects of pests in our County. They include:
1. Trap Rentals – Skunk/Racoon – 13 renters, 105 rental days, sold 1 new trap
2. Magpie traps – 3 Renters – 28 rental days, sold 3 new traps
3. Richardson Ground Squirrel control – 4802 bottles of 2%LSC sold, 113 landowners
4. Grain bugs and Richardson Ground Squirrels – sold 18 Phostoxin Flasks, 3 landowners
5. Monitored 3 hawk nesting poles on County owned land for nests
6. Operated 2 hamlet and 1 airport gopher control programs using Rozol RTU (3 weeks)
7. Rabies Surveillance Partnership (1 week of trapping/monitoring)
8. Disinfected 2 potato cellars for storage pests
County of Newell - 2021 Annual Financial Report Page 29
AGRICULTURAL SERVICES REPORT
Environmental Programming
Through a partnership with the Alberta Government,
the ASB offers environmental programming. This
programming encourages information sharing and
helps us partner with others to provide different
learning opportunities. It also enables us to commit
time to Environmental Farm Plans and some
Canadian Agricultural Partnership grant help.
In 2021 the following opportunities were available
and utilized:
1. 7 Environmental Farm Plans completed; 6 others
started
2. Nutrient Management Seminar series – 503
Participants
3. Helped organize the 2022 Nutrient Management
Seminar Series
Your ASB is also proud to sponsor and work with:
1. Alberta Farm Animal Care Association
2. Farm Safety Center
3. Farming Smarter
4. Alberta Invasive Species Council
5. Ag For Life
Mowing
The ASB operates two distinct mowing programs:
right of way mowing and County owned property
mowing. Both take place to compliment weed
control efforts, improve drainage, improve right of
way safety, and for aesthetics. In total, the ASB
mowed 3800 miles (one way) on the roadsides and
invested over 1800 hours maintaining vegetation in
hamlets, subdivisions and airports.
County of Newell - 2021 Annual Financial ReportPage 30
AGRICULTURAL SERVICES REPORT
Rental Equipment
The ASB has a number of equipment rentals available. Rental units are charged out as close to cost recovery
as possible. Usage for 2020 is as follows:
1. Loading Chute and Panels – 12 renters
2. Calf table – 5 renters
3. Livestock scale – 11 renters
4. Boomless sprayers (2) – 6 renter
5. Three Point Hitch Sprayer –
1 renter
6. Quad Sprayer – 1 renter
7. Double disc drill - 16 renters,
1466.7 acres
8. No Till Drills (2) – 51 renters,
2971.9 acres
9. Brillion Seeders (2) – 8 renters,
340 acres
10. Tandem Axle BBQ – 8 users
Emerson Bridge Park Campground
Emerson Bridge Park Campground is a beautiful
campground located where highway 36 intersects the
Red Deer River. This campground boasts large sites,
large cottonwood trees, and the peaceful serenity of
nature. The campground has a total of 64 designated
campsites, of which 49 are power sites, 9 non-power
sites, and 6 overflow sites. Beyond all of these great
features, the campground is owned by the County
and the operation and maintenance falls under the
responsibility of the ASB. The 2021 season returned
to relatively normal operations. There was an influx
of long term campers; whether that was in the form
of seasonal site rentals or month long site rentals,
both were quite popular options. Overall occupancy
was 52% for the season, with power sites coming
in at 59% occupied and non-power sites being 25%
occupied. Registration revenue continued on its
historical journey upward and revenue came in at
$108,658, which is up from 2020 revenue of $90,975.
With the long fall, we were able to accommodate many
after season camping registrations and a few group
camping opportunities.
County of Newell - 2021 Annual Financial Report Page 31
AGRICULTURAL SERVICES REPORT
Other Programming
Some other great programs and activities include the Calgary Stampede Farm Family Award, Rural Beautification
Program, seed cleaning plant inspections/licensing, roadside seeding (32 miles), and the ASB is happy to offer
various pest and agronomic recommendations.
The ASB strives to partner with other organizations in projects of mutual benefit. These partners include Alberta
Conservation Association, Newell Regional Solid Waste Management Authority, Partners in Habitat Development,
Canadian Pacific Railway, Volker Stevin, Alberta Infrastructure, Grasslands Public Schools, the local Oil and Gas
industry, TD Tree Days, and other municipalities.
The ASB continues to be active in promoting and protecting agriculture. If you have questions/concerns or
require more information on any of the programming, please feel free to contact the ASB office at 403-362-3266
or check out our website www.countyofnewell.ab.ca and remember to follow the County on social media for
timely information sharing. ASB related issues and concerns are dealt with at regular Council meetings.
Respectfully Submitted,
Todd Green,
Director of Agricultural Services
County of Newell - 2021 Annual Financial ReportPage 32
Photo by D. Wiebe
County of Newell - 2021 Annual Financial Report Page 33
MUNICIPAL SERVICES REPORT
Municipal Services consists of multiple smaller departments which include Fleet Services,
Municipal Enforcement, Public Works &
Engineering - Transportation (Roads), Airport, Water, Wastewater (Sewer), Storm Water, Solid Waste Services, and Planning & Development – all necessary Departments to encourage and support sustainable growth and quality of life.
Through responsible management, innovation
and teamwork, these Departments strive to
provide dependable, high levels of service at reasonable costs.
The following are key highlights from Departments in 2021
Municipal Enforcement ServicesThe Municipal Enforcement Department continues with service provisions in partner jurisdictions including the Town of Bassano, Villages of Duchess and Rosemary, and the Eastern Irrigation District. In late 2021, the Village of Hussar confirmed services would no longer be required from the County. Partnership services are
cost recovered on an hourly rate basis under contract, where the contracts were updated and new terms agreed
to by all partners commencing in 2022. The Department continues to engage and educate the public. Monthly
priorities for the department match that of the Selective Traffic Enforcement Program (STEP) of the Province, which are identified on the Alberta Traffic Safety Calendar.
The Department patrolled partner jurisdictions for 823 hours, which was down from 960 hours in 2020. In addition to this, the Department patrolled County jurisdictions, including rural areas, multi-lot subdivisions, and Hamlets.
The Department issued 354 tickets and 323 warnings in 2021 related to Provincial offences within the County and
partner jurisdictions. The Top Five Provincial offenses, representing 70% of all offences in 2021, included violations of: Speeding (287), Traffic Safety Operating Unregistered Motor Vehicles (54), Traffic Safety (44), Fail to Produce Insurance
(34), Driving Left of Centerline
(26), and Vehicle Equipment Regulation (26).
10 tickets and 164 warnings were also issued in 2021 related to
Bylaw offences within the County
and partner jurisdictions. The Top
Five Bylaw offenses, representing 70% of all Bylaw offences in 2021, included violations of: Bylaw (47), Unsightly Property (40), Detached Trailers (14),
Dog Control – At Large (12), and
Unauthorized Road Use (8).
County of Newell - 2021 Annual Financial ReportPage 34
MUNICIPAL SERVICES REPORT
Public Works & Engineering ServicesThe Public Works & Engineering Departments collectively and collaboratively manage 1456 kms of gravel road and 232 kms of paved road surfaces, through established preventative maintenance and capital improvement programs.
The Departments strive to provide well maintained gravel surfaced roads utilizing 8 grader operators responsible for an average of 185 kms of gravel road each. It takes 20 working days (1 month) to complete one round of maintenance services per beat. Over the course of the spring, summer, and fall maintenance seasons, grader operators in 2021 performed 10,364 kms of gravel road surface maintenance, compared to 8570 kms in 2020. Additionally, the Departments re-surfaced 367.8 kms, or 25.3% of the total gravel road surfaces in the County, compared to 387.2 kms, or 26.5% in 2020. The 2021 program consumed 39,952 cubic meters of crushed aggregates and was completed at a total cost of $546,606 averaging $1,486/km compared to 40,228 cubic meters at a total cost of $687,273 averaging $1,775/km in 2020.
The Departments offer Dust Abatement services where 111,869 linear meters (111.87 kms) of dust abatement were applied to gravel surfaced roads in 2021 compared to 104,309 linear meters (104.31 kms) in 2020. The program consisted of 311 applications for Residential (286) and Non-Residential (25), compared to 281 applications forResidential (256) and Non-Residential (25) in 2020. Including County Aggregate Haul Roads and intersection treatments the 2021 program consumed 1,732,486 litres of dust abatement product over 14 working days with two active crews, at a total cost of $497,377.33, averaging $4.45/Lm. In comparison, the 2020 program consumed 1,531,580 litres, taking 11 working days to complete, at a total cost of $400,561.57, averaging $3.84/Lm.
The Department completed roadside drainage improvements and shoulder pulls on RR151 (3200 meters) from HWY 542 to TR184 and RR150 (800 meters) from City of Brooks boundary to TR184. Roadside drainage was also completed in the subdivisions of Johnson 1, Johnson 2, Evergreen Industrial. Martin Industrial improvements are scheduled to be complete spring 2022.
In addition to the gravel road network, the County provides a ban free paved road network. The ban free driving surface allows producers to transport commodities from field to market year-round, unrestricted. An important part of preserving the paved road infrastructure in the County is performing timely enhancements on them. One Tree Road received an overlay from Hwy 544 south to RR142 in 2021. The overlay project cost was $2,151,651. In addition to the overlay, the contractor replaced two bridge sized culverts, one non-bridge sized culvert, and added extensions to three additional bridge files to improve the safety of the road network and extend the life of the structures. Minor deficiencies will be addressed in the Spring of 2022, alongside some improvements to the speed curve adjacent to Deer Run Estates.
County of Newell - 2021 Annual Financial Report Page 35
MUNICIPAL SERVICES REPORT
The Department, now in the tenth year of partnership with the Eastern Irrigation District (EID), continues with drainage improvements of $2 million annually ($1 million each party), as approved by EID Board and County Council. Progress in 2021 included the completion of +/- 5.6 kms of drainage improvements in Phase I of Rosemary. In 2020, the partnership completed 13.0 kms of drainage improvements in Bow City. In 2019 the partnership completed 10.4 kms in Rainier South, 16.0 kms in Rainier North, and the final 4.5 kms in Millicent. In 2018 approximately 8.4 kms of drainage in the Rainier south area were completed, whereas 10.3 kms were completed there in 2017. Previously completed projects include Cassils (15.2 kms), Rolling Hills (36.8 kms), Scandia (33.0 kms), and most recently Rainier (65.0 kms) and Millicent (28.8 kms). Future planned work includes Rosemary Phase II (2022), and subsequent phases thereafter. Subsequent phases will proceed in Rosemary at approximately 25.0 kms of improvements average per year, pending landowner support. When complete, Rosemary Drainage Improvements will total nearly 185 kms.
Water ServicesThe County Rural Water System consists of 1152 kms of water line servicing residences and businesses. The number of services as of December 31, 2021 is 1231 active users out of 1566 registered users, or 79% active, up from 1207 active users of 1566 registered users, or 77% active in 2020.
Closing RemarksIt has been my pleasure to lead this team in delivering cost effective public services to the rate payers of the County of Newell. This team remains focused on delivering high-quality low-cost services, without compromising public safety. It has been another unique year, navigating public health restrictions and managing infrastructure, however our dedicated team persevered, and for that I am very thankful.
Respectfully Submitted, Mark Harbicht, Director of Municipal Services
County of Newell - 2021 Annual Financial ReportPage 36
Photo by K. Nielsen
County of Newell - 2021 Annual Financial Report Page 37
PLANNING & DEVELOPMENT REPORT
There was a lot of growth in the Planning and Development Department in 2021. The department completed a
new Land Use Bylaw and the internal implementation has been successful. The department continues to work
with ISL Engineering and Land Services for recommendations on some of the day-to-day planning operations at
the County.
We continue to work through the SWOT (Strength, Weakness, Opportunities and Threats) analysis that was
completed by ISL in 2020. This analysis assists the department with creating annual workplans and promotes
efficiencies internally and for the customer.
The County is working with the City of Brooks and ISL Engineering to complete a growth study. The intent of this
study is to realize the future growth of the City and assist in creating a realistic Intermunicipal Development Plan
area between the 2 municipalities. This study should be completed in early 2022, and will assist in addressing
updates to the current IDP which was last updated in 2013.
The County Engineering and Design Guidelines and Construction Standards were reviewed, and the decision
was made to rescind them. It was determined that we will use the standards for Rocky View County going forward
for any development in the County. Rockyview County has a great mix of urban and rural style development
and adopting the same guidelines will allow us to give developers a clear understanding of what is expected
regarding development standards and the expected development procedures.
Subdivisions
The department received numerous inquiries regarding the subdivision of land in 2021. There were 9 applications
for boundary line adjustments. This means that the total number of lots does not increase, but the boundary lines
of existing parcels are changed to increase or decrease the amount of land within the existing parcels.
The County also received 9 applications for subdivision, with the total of 53 new lots created in 2021. The
subdivision of the North Headgates Area saw the creation of 44 new residential lots, and 1 municipal reserve
lot. There were 7 new country residential lots created and one lot in Rolling Hills that will house the renovated
fire hall.
Residential Commercial Industrial County Res Agriculture Misc TOTAL
2021 9 9 44 1 7 1 53
2020 20 5 1 12 8 26
2019*23 3 10 1 1 14 8 34
2018*15 1 9 5 15
2014*20 1 2 1 23 6 32
2020 58 25 83
2019 63 37 100
2018 66 35 101
2017 55 36 91
2016 89 42 131
2015 103 39 142
2014 97 38 135
Year Total #Year Total #
2020 6 2016 3
2019 9 2015 6
2018 7 2014 7
2017 3
Year 2021 2020 2019 2018 2017
Total 4 5 9 7 3
Land Use Amendments
Land Use Amendments
* Data provided by ORRSC
County of Newell Subdivision Stats
Development Permits Issued
Permitted Discretionary Total # of DPs
# of
Subdivisions
Boundary
Line Adj
NEWLY CREATED LOTS (By Use)
County of Newell - 2021 Annual Financial ReportPage 38
PLANNING & DEVELOPMENT REPORT
Development Permits
Notable development in 2021 included two additions at the JBS plant and 8 home occupation permits. The Home
Occupation permits included a bakery, fishing guide outfit, auto repair business, meal preparation business and
a personal service business. 2021 saw a new general store in Rolling Hills, the Scandia Coffee Barrel, a permit
approved for the Lathom Solar Farm and the rebuilding of the feed mill at MCF feedlot with an addition.
Development Permits
Notable development in 2021 included two additions at the JBS plant and 8 home occupation permits. The Home
Occupation permits included a bakery, fishing guide outfit, auto repair business, meal preparation business and a personal
service business. 2021 saw a new general store in Rolling Hills, a permit approved for the Lathom Solar Farm and the
rebuilding of the feed mill at MCF feedlot with an addition.
Development Permits Issued
Permitted Discretionary Total # of DPs
2021 76 34 110
2020 55 24 79
2019 63 37 100
2018 66 33 101
2017 55 36 91
2016 92 43 135
2015 103 39 142
2014 97 38 135
Construction Permits
Construction permits are required by the Alberta Safety Codes Act. Accredited municipalities, like the County of Newell,
are responsible for the administration of the Safety Codes Act. Park Enterprises reviews all building and private sewage
permit applications for code compliance and issues the permits on behalf of the County.
0
2
4
6
8
10
12
14
16
18
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2021 Development Permits Issued
Residential Non-Residential Home Occ 2020 Totals 2019 Totals
Development Permits
Notable development in 2021 included two additions at the JBS plant and 8 home occupation permits. The Home
Occupation permits included a bakery, fishing guide outfit, auto repair business, meal preparation business and a personal
service business. 2021 saw a new general store in Rolling Hills, a permit approved for the Lathom Solar Farm and the
rebuilding of the feed mill at MCF feedlot with an addition.
Development Permits Issued
Permitted Discretionary Total # of DPs
2021 76 34 110
2020 55 24 79
2019 63 37 100
2018 66 33 101
2017 55 36 91
Construction Permits
Construction permits are required by the Alberta Safety Codes Act. Accredited municipalities, like the County of Newell,
are responsible for the administration of the Safety Codes Act. Park Enterprises reviews all building and private sewage
permit applications for code compliance and issues the permits on behalf of the County.
0
2
4
6
8
10
12
14
16
18
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2021 Development Permits Issued
Residential Non-Residential Home Occ 2020 Totals 2019 Totals
County of Newell - 2021 Annual Financial Report Page 39
PLANNING & DEVELOPMENT REPORT
Construction Permits
Construction permits are required by the Alberta Safety Codes Act. Accredited municipalities, like the County of
Newell, are responsible for the administration of the Safety Codes Act. Park Enterprises reviews all building and
private sewage permit applications for code compliance and issues the permits on behalf of the County.
Land Use Bylaw Amendments
A land use amendment is a change to the land use district of a parcel of land to allow for a development that is currently
not permitted in the Land Use Bylaw. In 2021, 4 land use amendment were completed. 2 for the purpose of subdividing
additional lots on a parcel of land, 1 was to align the land in accordance with the North Headgates Area Redevelopment
Plan and the subsequent subdivision and 1 was to allow for the development of a business on a parcel that was not zoned
for that use.
0
5
10
15
20
25
30
35
40
45
50
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2021 Construction Permit Numbers
Building Electrical Gas Plumbing PSDS 2020 Totals
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
2021 2020 2019
Construction Permit Application Fees
Building Electrical Gas Plumbing PSDS
Year 2021 2020 2019 2018 2017 2016 2015
Total 4 6 9 7 3 3 6
Land Use Amendments
County of Newell - 2021 Annual Financial ReportPage 40
Land Use Bylaw Amendments
A land use amendment is a change to the land use district of a parcel of land to allow for a development that
is currently not permitted in the Land Use Bylaw. In 2021, 4 land use amendments were completed - 2 for the
purpose of subdividing additional lots on a parcel of land, 1 was to align the land in accordance with the North
Headgates Area Redevelopment Plan and the subsequent subdivision, and 1 was to allow for the development
of a business on a parcel that was not zoned for that use.
PLANNING & DEVELOPMENT REPORT
Photo by S. Plett
Residential Commercial Industrial County Res Agriculture Misc TOTAL202199441715320202051128262019*23 3 10 1 1 14 8 342018*15 1 9 5 152014*20 1 2 1 23 6 322020582583201963371002018663510120175536912016894213120151033914220149738135
Year Total #Year Total #
2020 6 2016 3
2019 9 2015 6
2018 7 2014 7
2017 3
Year 2021 2020 2019 2018 2017
Total 4 5 9 7 3
Land Use Amendments
Land Use Amendments* Data provided by ORRSC County of Newell Subdivision StatsDevelopment Permits IssuedPermittedDiscretionaryTotal # of DPs# of Subdivisions BoundaryLine Adj NEWLY CREATED LOTS (By Use)
Page 41County of Newell - 2021 Annual Financial Report
Photo by N. Seymour
Page 42
Photo by S. Martens
Page 43County of Newell - 2021 Annual Financial Report
section 2
CONSOLIDATED
FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 44
CONSOLIDATED FINANCIAL STATEMENTS
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CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 46
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 47
CONSOLIDATED FINANCIAL STATEMENTS
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CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 49
CONSOLIDATED FINANCIAL STATEMENTS
Photo by S. Barkley
County of Newell - 2021 Annual Financial ReportPage 50
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 51
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 52
CONSOLIDATED FINANCIAL STATEMENTS
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CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 54
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 55
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 56
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 57
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 58
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 59
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 60
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 61
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 62
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 63
CONSOLIDATED FINANCIAL STATEMENTS
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CONSOLIDATED FINANCIAL STATEMENTS
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CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial ReportPage 66
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2021 Annual Financial Report Page 67
SCHEDULE OF SEGMENTED DISCLOSURES
Photo by D. Wiebe
Page 68
Photo by S. Plett
Page 69County of Newell - 2021 Annual Financial Report
section 3
STATISTICAL SECTION
County of Newell - 2021 Annual Financial ReportPage 70
Demographics & Other StatisticsSTATISTICAL SECTION
2017 2018 2019 2020 2021
Population 7,524 7,524 7,524 7,524 7,465
Dwelling units 3,069 3,114 3,099 3,107 3,215
Area in hectares 619,600 619,600 619,600 619,600 619,600
Continuous full-time employees 65 63 60 62 58
Maximum allowable debt limit 57,197,442 60,325,292 62,518,217 57,563,781 58,820,313
Debt supported by property taxes 20,020,644 14,882,255 9,648,333 5,996,703 3,514,130
Debt supported by notes receivable 789,542 - - - -
Debt per capita 2,766 1,978 1,282 797 471
Net Municipal Property Taxes 32,278,376 32,982,614 29,653,558 30,819,752 30,827,136
Taxable Assessment 4,217,745,390 4,235,121,120 4,283,662,880 3,987,585,900 3,873,087,590
Annual surplus (deficit)(18,998,054) 8,704,057 12,266,757 4,548,493 14,504,593
Accumulated surplus 269,674,354 278,378,411 290,645,168 295,193,661 309,698,253
Net financial assets 66,110,967 76,877,685 93,393,034 98,843,335 112,677,739
Permits Issued:
Building Permit 70 73 55 69 77
Electrical Permit 153 198 163 152 199 Gas Permit 72 64 57 50 68 Plumbing Permit 48 57 28 32 34
Private Sewage Permit 18 17 16 19 24
361 409 319 322 402
*Source: 2010 - 2015 Alberta Municipal Affairs Statistics Profile; 2016 Statistics Canada; 2021 Statistics Canada
Photo by E. Harbinson
County of Newell - 2021 Annual Financial Report Page 71
Photo by E. Harbinson
Expenses by ObjectSTATISTICAL SECTION
EXPENSES BY FUNCTIONEXPENSES 2017 2018 2019 2020 2021DECEMBER 31, 2021Legislative 515,343$ 467,697$ 478,695$ 342,334$ 443,261$ Administration 4,381,172 4,510,648 4,245,460 4,255,175 4,112,615 Corporate safety services 339,779 318,794 428,417 471,669 448,100 Police - - - 227,481 402,788 Fire and bylaw enforcement 1,156,185 1,172,017 1,725,647 1,265,257 1,444,632 Disaster and emergency services 244,070 244,948 221,852 220,033 235,875 Roads, streets, walks and lighting 10,873,803 11,411,031 11,133,537 10,805,691 10,793,262 Airport 115,279 111,071 115,718 64,096 32,534 Water and waste water 2,890,116 2,925,322 2,878,882 3,001,461 2,686,739 Waste management 698,556 470,972 335,958 342,572 348,491 Family and community support 79,466 64,466 65,755 67,070 67,070 Municipal planning 571,253 479,191 545,420 511,565 628,615 Community and agricultural services 1,609,879 1,783,155 1,808,897 1,718,743 1,914,176 Subdivision land and development 190,737 186,695 197,438 151,375 186,846 Recreation and parks 1,873,728 828,494 915,686 1,645,492 1,527,483 Culture and library 155,326 160,653 161,745 181,725 197,075 Other 1,269,883 158,034 575,027 3,225,954 913,111
TOTAL EXPENSES BY FUNCTION 26,964,575$ 25,293,188$ 25,834,134$ 28,497,693$ 26,382,673$
EXPENSES BY OBJECT
EXPENSES 2017 2018 2019 2020 2021
YEAR ENDED DECEMBER 31st
Salaries, wages and benefits 7,895,217$ 7,893,075$ 7,933,001$ 7,838,554$ 7,722,815$ Contracted and general services 3,455,799 3,793,283 3,430,120 3,595,775 3,454,122
Materials, goods, supplies and utilities 4,796,641 4,602,510 4,690,632 4,044,176 4,193,413
Transfers to organizations 2,920,646 1,608,763 1,874,628 2,690,666 2,818,335
Bank charges 6,014 6,407 11,502 9,433 9,242
Interest on debt 551,044 423,942 295,746 206,179 138,334
Other expenditures 810,395 49,120 561,018 3,212,112 901,126
Amortization 6,528,819 6,916,087 7,037,486 6,900,798 7,145,286
TOTAL EXPENSES BY OBJECT 26,964,575$ 25,293,188$ 25,834,134$ 28,497,693$ 26,382,673$
502,581-$ 1,671,387-$ 540,946$ 2,663,559$ 2,115,020-$
EXPENSES % OF TOTAL 2017 2018 2019 2020 2021
YEAR ENDED DECEMBER 31st
Salaries, wages and benefits 29.28%31.21%30.71%27.51%29.27%
Contracted and general services 12.82%15.00%13.28%12.62%13.09%
Materials, goods, supplies and utilities 17.79%18.20%18.16%14.19%15.89%
Transfers to organizations 10.83%6.36%7.26%9.44%10.68%
Bank charges 0.02%0.03%0.04%0.03%0.04%
Interest on long-term debt 2.04%1.68%1.14%0.72%0.52%Other expenditures 3.01%0.19%2.17%11.27%3.42%Amortization 24.21%27.34%27.24%24.22%27.08%
TOTAL EXPENSES BY OBJECT 100%100%100%100%100%
Significant items driving variances in total expenses trends across the period include:Salaries, wages and benefits:• Decreased since 2019 due to lower cost-of-living adjustments and vacant positionsMaterials, goods, supplies and utilities:• Landfill reclamation costs of $372 thousand and bridge repairs of $200 thousand in 2017.• Increasing water usage charges from NRSC as additional water users access the rural system ($277 thousand in 2017 to $456 thousand in 2021).• AFFRCS radios purchased in 2019 at $323 thousand.Transfers to organizations:• Transfers to other municipalities in the County under the Regional Enhancement & Cooperation Agreements & new ICF agreements that were finalized in 2020. 2017 ($330 thousand); 2018 ($496 thousand), 2019 ($976 thousand), 2020 ($816 thousand), 2021 ($1.91 million).• Policing costs transferred to Province in 2020 ($215 thousand), 2021 ($390 thousand)Other expenditures:• Adjustment to MSI grant funding receivable of $765 thousand in 2017.• Adjustment to the allowance for doubtful property taxes receivable in 2019 ($561 thousand), 2020 ($537 thousand); 2021 ($212 thousand)• Discounts on taxes in 2020 ($1.8 million); 2021 ($687 thousand)Amortization:• Total cost of tangible capital assets (net of work-in-progress assets) has increased from $270 million in 2017 to $281 million in 2021 which had been contributing to the increase in annual amortization expense. For 2020, disposals and assets fully amortized led the slight decrease over the prior year.
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
Salaries, wagesand benefits Contracted andgeneral services Materials, goods,supplies andutilities
Transfers toorganizations Bank charges Interest on debt Otherexpenditures Amortization
Mi
l
l
i
o
n
s
Expenses by Object
2017 2018 2019 2020 2021
County of Newell - 2021 Annual Financial ReportPage 72
Expenses by FunctionSTATISTICAL SECTION
EXPENSES BY FUNCTION
EXPENSES 2017 2018 2019 2020 2021
DECEMBER 31, 2021
Legislative 515,343$ 467,697$ 478,695$ 342,334$ 443,261$
Administration 4,381,172 4,510,648 4,245,460 4,255,175 4,112,615
Corporate safety services 339,779 318,794 428,417 471,669 448,100
Police - - - 227,481 402,788
Fire and bylaw enforcement 1,156,185 1,172,017 1,725,647 1,265,257 1,444,632
Disaster and emergency services 244,070 244,948 221,852 220,033 235,875
Roads, streets, walks and lighting 10,873,803 11,411,031 11,133,537 10,805,691 10,793,262 Airport 115,279 111,071 115,718 64,096 32,534
Water and waste water 2,890,116 2,925,322 2,878,882 3,001,461 2,686,739
Waste management 698,556 470,972 335,958 342,572 348,491
Family and community support 79,466 64,466 65,755 67,070 67,070
Municipal planning 571,253 479,191 545,420 511,565 628,615
Community and agricultural services 1,609,879 1,783,155 1,808,897 1,718,743 1,914,176
Subdivision land and development 190,737 186,695 197,438 151,375 186,846 Recreation and parks 1,873,728 828,494 915,686 1,645,492 1,527,483
Culture and library 155,326 160,653 161,745 181,725 197,075
Other 1,269,883 158,034 575,027 3,225,954 913,111
TOTAL EXPENSES BY FUNCTION 26,964,575$ 25,293,188$ 25,834,134$ 28,497,693$ 26,382,673$
EXPENSES BY OBJECT
EXPENSES 2017 2018 2019 2020 2021
YEAR ENDED DECEMBER 31st
Salaries, wages and benefits 7,895,217$ 7,893,075$ 7,933,001$ 7,838,554$ 7,722,815$
Contracted and general services 3,455,799 3,793,283 3,430,120 3,595,775 3,454,122 Materials, goods, supplies and utilities 4,796,641 4,602,510 4,690,632 4,044,176 4,193,413
Transfers to organizations 2,920,646 1,608,763 1,874,628 2,690,666 2,818,335
Bank charges 6,014 6,407 11,502 9,433 9,242
Interest on debt 551,044 423,942 295,746 206,179 138,334
Other expenditures 810,395 49,120 561,018 3,212,112 901,126
Amortization 6,528,819 6,916,087 7,037,486 6,900,798 7,145,286
TOTAL EXPENSES BY OBJECT 26,964,575$ 25,293,188$ 25,834,134$ 28,497,693$ 26,382,673$
502,581-$ 1,671,387-$ 540,946$ 2,663,559$ 2,115,020-$
EXPENSES % OF TOTAL 2017 2018 2019 2020 2021
YEAR ENDED DECEMBER 31st
Salaries, wages and benefits 29.28%31.21%30.71%27.51%29.27%
Contracted and general services 12.82%15.00%13.28%12.62%13.09%
Materials, goods, supplies and utilities 17.79%18.20%18.16%14.19%15.89%
Transfers to organizations 10.83%6.36%7.26%9.44%10.68%
Bank charges 0.02%0.03%0.04%0.03%0.04%
Interest on long-term debt 2.04%1.68%1.14%0.72%0.52%
Other expenditures 3.01%0.19%2.17%11.27%3.42%Amortization 24.21%27.34%27.24%24.22%27.08%
TOTAL EXPENSES BY OBJECT 100%100%100%100%100%
$-
$2
$4
$6
$8
$10
$12
Mi
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Expenses by Function
2017 2018 2019 2020 2021
County of Newell - 2021 Annual Financial Report Page 73
Revenues by SourceSTATISTICAL SECTION
REVENUESDECEMBER 31, 2021 2017 2018 2019 2020 2021
Net municipal property taxes $32,278,376 $32,982,614 $29,653,558 $30,819,752 $30,827,136
Special levies 117,189 114,362 118,918 117,475 119,569 User fees and sale of goods 2,618,838 3,310,758 3,939,006 3,053,936 2,740,132
Government transfers 638,510 685,888 4,149,246 600,370 1,455,236
Penalties and cost of taxes 210,582 280,078 321,397 288,153 143,606 Investment income 1,234,488 2,000,408 2,788,328 2,919,828 2,689,649
Licenses and permits 255,278 213,321 185,448 215,277 280,361
Other revenue 634,705 421,622 558,461 379,013 835,390 Gain (loss) on disposal of TCA 143,662 102,936 (35,551) (17,950) 122,462
Operating revenues $38,131,628 $40,111,987 $41,678,811 $38,375,854 $39,213,541
Other:
Insurance proceeds - - - - 5,773
Contributed assets - - - - -
Government transfers for capital 173,520 99,880 842,805 1,040,021 2,791,240 173,520 99,880 842,805 1,040,021 2,797,013
TOTAL REVENUE 38,305,148$ 40,211,867$ 42,521,616$ 39,415,875$ 42,010,554$
Property taxes continue to be the most significant source of revenue for the County, comprising from 71% to 85% of total operating revenues over the period reported above. A few of the more significant items driving variances in total revenue trends across the period include:• Government transfers for operating and capital, which are dependent on other levels of government; • Special levies, which include local improvement taxes, depend on local improvement projects completed in a given year• User fees and sales of goods, included well drilling tax, which the Province cancelled in 2021
Photo by S. Barkley
County of Newell - 2021 Annual Financial ReportPage 74
Capital Expenditures - by GroupSTATISTICAL SECTION
COUNTY OF NEWELL
STATISTICAL SECTION
DECEMBER 31, 2021
CAPITAL EXPENDITURES - BY GROUP
2017 2018 2019 2020 2021
Land -$ 19,743$ -$ 6,786$ 3,307$
Land Improvements - - 20,267 48,529 32,662
Buildings 1,808,934 96,375 58,000 - -
Engineered structures 13,548,656 2,488,379 1,984,760 3,228,770 3,716,086
Machinery and equipment 536,544 665,076 383,166 982,381 590,038
Vehicles 1,335,007 804,853 171,781 1,243,283 1,458,522
Work In progress, net of transfers -1,615,844 308,106 701,346 -2,527 2,722,408
Total 15,613,297$ 4,382,532$ 3,319,320$ 5,507,222$ 8,523,023$
Land 0.04%
Land Improvements 0.38%
Engineered structures 43.60%
Machinery and equipment 6.92%
Vehicles 17.11%
Work In progress, net of transfers 31.94%
CAPITAL EXPENDITURES - BY FUNCTION
2017 2018 2019 2020 2021
Administration 1,876,302$ 355,224$ 196,798$ 395,906$ 173,800$
Corporate safety services - 19,000 - - -
Disaster and emergency services 50,432 - - - -
Fire and bylaw enforcement 1,044,717 376,213 90,789 350,894 786,002
Roads, streets, walks and lighting 12,260,673 3,338,643 2,771,171 4,415,215 7,243,002
Water and waste water 13,021 1,848 - 13,692 44,578
Community and agricultural services 233,022 291,604 260,562 331,515 275,641
Recreation and parks 135,130 - - - -
Total 15,613,297$ 4,382,532$ 3,319,320$ 5,507,222$ 8,523,023$
Administration 2.04%
Fire and bylaw enforcement 9.22%
Roads, Streets, Walks and Lighting 84.98%
Water and waste water 0.52%
Agricultural Services 3.23%
Note: Fleet services is included in roads, streets, walks and lighting
Land
0.04%
Land Improvements
0.38%Engineered structures
43.60%
Machinery and
equipment
6.92%
Vehicles
17.11%
Work In
progress, net of transfers
31.94%
2021 CAPITAL EXPENDITURES BY GROUP
Administration
2.04%Fire and bylaw enforcement
9.22%
Roads, Streets, Walks and
Lighting84.98%
Water and waste
water
0.52%
Agricultural
Services
3.23%
2021 CAPITAL EXPENDITURES BY FUNCTION
Land
0.04%
Land
Improvements
0.38%Engineered
structures
43.60%
Machinery and
equipment
6.92%
Vehicles
17.11%
Work In
progress, net of
transfers
31.94%
2021 CAPITAL EXPENDITURES BY GROUP
Capital Expenditures - by FunctionSTATISTICAL SECTION
COUNTY OF NEWELL STATISTICAL SECTIONDECEMBER 31, 2021CAPITAL EXPENDITURES - BY GROUP 2017 2018 2019 2020 2021Land-$ 19,743$ -$ 6,786$ 3,307$ Land Improvements - - 20,267 48,529 32,662Buildings1,808,934 96,375 58,000 - - Engineered structures 13,548,656 2,488,379 1,984,760 3,228,770 3,716,086Machinery and equipment 536,544 665,076 383,166 982,381 590,038Vehicles1,335,007 804,853 171,781 1,243,283 1,458,522Work In progress, net of transfers -1,615,844 308,106 701,346 -2,527 2,722,408Total15,613,297$ 4,382,532$ 3,319,320$ 5,507,222$ 8,523,023$ Land 0.04%Land Improvements 0.38%Engineered structures 43.60%Machinery and equipment 6.92%Vehicles 17.11%Work In progress, net of transfers 31.94%
CAPITAL EXPENDITURES - BY FUNCTION
2017 2018 2019 2020 2021
Administration 1,876,302$ 355,224$ 196,798$ 395,906$ 173,800$
Corporate safety services - 19,000 - - -
Disaster and emergency services 50,432 - - - -
Fire and bylaw enforcement 1,044,717 376,213 90,789 350,894 786,002
Roads, streets, walks and lighting 12,260,673 3,338,643 2,771,171 4,415,215 7,243,002
Water and waste water 13,021 1,848 - 13,692 44,578
Community and agricultural services 233,022 291,604 260,562 331,515 275,641
Recreation and parks 135,130 - - - -
Total 15,613,297$ 4,382,532$ 3,319,320$ 5,507,222$ 8,523,023$
Administration 2.04%
Fire and bylaw enforcement 9.22%
Roads, Streets, Walks and Lighting 84.98%
Water and waste water 0.52%
Agricultural Services 3.23%
Note: Fleet services is included in roads, streets, walks and lighting
Land0.04%Land Improvements0.38%Engineered structures43.60%Machinery and equipment6.92%Vehicles17.11%Work In progress, net of transfers31.94%2021 CAPITAL EXPENDITURES BY GROUP
Administration
2.04%Fire and bylaw
enforcement
9.22%
Roads, Streets,
Walks and
Lighting
84.98%
Water and waste water
0.52%
Agricultural Services
3.23%
2021 CAPITAL EXPENDITURES BY FUNCTION
Administration
2.04%
Fire and bylaw
enforcement
9.22%
Roads, Streets,
Walks and
Lighting
84.98%
Water and waste
water
0.52%
Community and
agricultural
services
3.23%
2021 CAPITAL EXPENDITURES BY FUNCTION
Photo by L. Baron