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HomeMy WebLinkAbout2024-04-29 2023 Annual Report2023 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING DECEMBER 31, 2023 COUNTY OF NEWELL, ALBERTA, CANADA County of Newell, Alberta, Canada 2023 Annual Financial Report For the fiscal period ending December 31, 2023 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: 403-362-3266 E-Mail: administration@newellmail.ca The 2023 Annual Financial Report is available online at www.countyofnewell.ab.ca Cover Photos by Debbie Lea - Dinosaur Provincial Park (top) & Rebecca Arndt - Peeking Sun (bottom) Cover and other credited photos used throughout this document were submitted within the County to the #myCountyofNewell photo contest through Newell Connect Table of Contents County 2023 Annual Financial Report SECTION 3 Financial & Statistical Section Demographics & Other Statistics Expenses by Object Expenses by Function Revenues by Source Capital Expenditures - by Group Capital Expenditures - by Function SECTION 1Introduction Vision and Mission Guiding Principles County Profile County Council Organizational Chart GFOA Canadian Award for Financial Reporting Message from the Reeve Report from the Controller Agricultural Services Report Municipal Services Report Planning & Development Report SECTION 2 Consolidated Financial Statements Management’s Responsibility for the Consolidated Financial Statements Independent Auditors’ Report Consolidated Statement of Financial Position Consolidated Statement of Financial Activities Consolidated Statement of Remeasurement Gains and Losses Consolidated Statement of Change in Net Financial Assets Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Schedule of Segmented Disclosures Page 3 5 6 7 10 11 12 13 20 33 39 44 49 50 53 54 55 56 57 58 78 80 81 83 84 85 86 INTRODUCTION SECTION 1 County 2023 Annual Financial Report Page 4 Photo: Eric Harbinson Photo: Rebecca Arndt Photo: Kathy Arigan Vision & Mission Statement County 2023 Annual Financial Report MISSION To encourage and attractsustainable growthand support a highquality of life. VISION Page 5 Through leadership,partnership, andeffective policy, theCounty providesservices, structure,and stability to itsresidents. S e e k cooperation w it h i n d i v i duals, governm ents & o r g a n izations S tri v e f o r long-term finan cia l s t a b i l i t y Preservin g la n d for agriculture GUIDING PRINCIPLES P lan for future gro w t h & d e velopment Support develop m e nt & s u s t a inability of stron g in fr a s t r u c ture Provide consistent & efficient services Promote open communication betw e e n s t a f f , Council & public County 2023 Annual Financial Report Page 6 County 2023 Annual Financial Report County Profile Photo: Nancy Knelsen 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, and 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 25,000. The largest urban communities in the region are the City of Brooks and the Town of Bassano. We have positive working relationships with these urban neighbours, which improves the quality of services provided to all Newell 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. Page 7 County 2023 Annual Financial Report County Profile Photo: Debbie LeaThe 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. We are 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, 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. Photo: Susan Yokoyama A fourth sector, utility scale renewable energy facilities, are 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 Reservoir - 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. Page 8 County Hamlet Populations Bow City 16 Cassils 22 Gem 29 Lake Newell Resort 437 Patricia 88 Rainier 21 Rolling Hills 263 Scandia 169 Tilley 335 Total 1382 TOP 10 TAXPYERS Torxen Energy Ltd.1. Canadian Natural Resources Ltd.2. Nova Gas Transmission Ltd.3. Atco Electric Ltd.4. Altalink Management Ltd.5. 6. Cardinal energy Ltd. 7. JBS Food Canada ULC. 8. IPC Canada Ltd. 9. Foothills Pipe Lines (Alta) Ltd. 10. Inter Pipeline Ltd. County 2023 Annual Financial Report Photo: Debbie Lea Population: (2021): 7,465 Unemployment Rate (2021): 8.6% Decrease in population from 2016: 0.8% Median Household Income (2020): 92,000 Median Age: 39 Number of Farms: 727 TOP 10 TAX PAYERS $ Page 9 Adena Skanderup 403-633-2224 skanderupa@newellmail.ca Lynette Kopp 403-363-5677 koppl@newellmail.ca Holly Johnson 403-363-4701 johnsonh@newellmail.ca Reeve Arno Doerksen 403-363-0253 doerksena@newellmail.ca Ellen Unruh 403-793-3369 unruhe@newellmail.ca Kelly Christman (Deputy Reeve) 403-793-0014 christmank@newellmail.ca DIVISION 6 Bassano Neil Johnson 403-793-4206 johnsonn@newellmail.ca DIVISION 9 Gem DIVISION 10 Brooks Dan Short 403-363-0538 shortd@newellmail.ca DIVISION 1 Rolling Hills DIVISION 2 Tilley DIVISION 3 Patricia DIVISION 4 Scandia/Rainier/Bow City Greg Skriver 403-409-4281 skriverg@newellmail.ca DIVISION 5 Cassils & Lake Newell Resort DIVISION 7 Rosemary Amanda Philpott 403-362-1949 philpotta@newellmail.ca DIVISION 8 Duchess County Council County 2023 Annual Financial Report Page 10 County 2023 Annual Financial Report Reeve & Council Manager of Operations Manager of Planning, Development & Engineering Services Manager of Agricultural Services Director of Agricultural Services Director of Municipal Services Executive Assistant Chief Administrative Officer Director of Information & Technology Services Manager of Corporate Safety Services Newell Regional Fire Chief Director of Corporate Services Organizational Chart Page 11 County 2023 Annual Financial Report GFOA Canadian Award for Financial Reporting Government Finance Officers Association Canadian Award for Financial Reporting Presented to County Alberta For its Annual Financial Report for the Year Ended December 31, 2022 Executive Director/CEO The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the County for its Annual Financial Report for the fiscal year ended December 31, 2022. 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. Page 12 County 2023 Annual Financial Report Message from the Reeve Our region has a dynamic history of irrigation development dating back to the beginning of construction of the Bassano Dam in 1910. Leaders with vision, ambition, and an understanding of the benefit of water for irrigation in our region worked hard to give landowners the opportunity to advance. Today, the County is fortunate to have the Eastern Irrigation District within its boundaries. From our perspective, the extensive irrigation water delivery infrastructure across the district presents one of the most productive Here are some of the highlights from 2023. Over the years, some areas of the County have experienced more growth than others and this has resulted in an uneven population distribution between the County’s electoral divisions. In January, Council initiated the process for an equitable redistribution of the population across divisions, starting with a request for public feedback on whether this was a priority and if the process should include changing the number of electoral divisions. Photo: Rachelle Undershute opportunities for economic development in our County. Alberta irrigation industry studies indicate an annual contribution of 3,900 per irrigated acre to Alberta’s gross domestic product. Years ago, Alberta Agriculture set the ultimate expansion of irrigation in the district at 550,000 acres. About 311,000 acres of irrigation have been developed to date. Decisions to expand irrigation in our region clearly rest with the irrigators. Council would welcome the opportunity to work together with the Eastern Irrigation District to find ways to develop irrigated acres more rapidly in line with the broader vision that was cast many years ago. An ambitious plan for irrigation expansion would also attract investment in value-added agriculture. Our primary responsibility as a Council is to set the overall direction for the County while considering all aspects of the municipality to ensure we maintain safe and sustainable communities for our constituents. We do this by developing and evaluating our programs and policies to ensure that they are operating in the best interests of County residents. This Council is entering the third year of a four-year term and has made significant progress on the items identified during the strategic planning session held shortly after the 2021 election. $ Page 13 County 2023 Annual Financial Report easement agreements. Following this, Council received presentations from the Southern Alberta Land Trust Society and the Corvus Centre for Conservation Policy to learn more about conservation easements. While Council is not opposed to conservation easements and the preservation of natural grasslands, they are concerned with the fact that these easements are registered in perpetuity, potentially limiting options for future land development and effectively making decisions for future generations. At RMA’s 2024 spring convention the County sponsored an emergent resolution opposing the Federal Zero Emission Vehicle (ZEV) mandate that passed with significant support. The ZEV mandate is expected to disproportionately impact rural and remote communities by increasing production costs for our rural industries, negatively impacting our cost competitiveness, and leading to adverse economic impacts. Message from the Reeve Photo: Rachelle UndershuteA total of 261 responses to the survey were received, 61.6% of which were in favor of redistributing the County’s population. Terms of Reference were drafted for the Electoral Boundary Review process which included reducing the number of divisions to nine (9). Four (4) concept maps were developed as potential options for the divisional boundary realignment and the public engagement process continues into 2024. The County sponsored a resolution to the Rural Municipalities of Alberta (RMA) that requests a revision of the Alberta Land Stewardship Act to require an expiration date of not more than forty (40) years be included in conservation Page 14 County 2023 Annual Financial Report Renewable energy developments, especially solar energy developments, continue to be a topic of conversation at all levels of government. Council shares the concerns raised by many municipalities regarding the lack of reclamation plans for solar developments. Representatives from the Alberta Surface Rights Federation, Alberta Utilities Commission (AUC), and the Canadian Renewable Energy Association were invited to Council meetings to provide information regarding renewable energy developments and the application process. The County participated in the AUC Inquiry on Renewable Energy Development as an observer and three members of Council were appointed to a committee that worked with our Planning & Development staff to complete the comment matrix. Council also participated by sending one member of Council in the review of Quasi-judicial Boards making recommendations for changes. Significant progress was made this year towards the revitalization of the Crop Diversification Centre South (CDC). The County has entered lease negotiations with the Government of Alberta (GoA) that would give the responsibility for managing the CDC facilities to the County, provided that the GoA also commits funding for the facility. Meetings continue with various Ministers and other stakeholders as Council is committed to seeing this project through. In December, Council established a committee consisting of four Councillors and two members-at-large with expertise in agriculture, research, and relevant fields that will be committed to making full use of this important agricultural research facility. Message from the Reeve Page 15 Recreation is an important feature of any municipality, and we continue to work towards sustainable funding for facilities and recreation services. The Recreation Facility Improvement policy was updated to include definitions for urgent/emergency situations and funding applications must include clear budgets with specific funding sources and usage statistics wherever possible. Funding applications approved under this policy in 2023 include upgrades to the Rolling Hills campground and ice plant at the Rolling Hills arena, and an expansion of the EID Historical Park Campground. Message from the Reeve County 2023 Annual Financial Report Work continues on developing pathways with Council approving funding for any fundraising shortfall up to the 2023 budgeted amount to proceed with Phase 2 of the Kinbrook Connection Pathway. The tender was awarded to Brooks Asphalt & Aggregate who will complete the paved pathway to Kinbrook Island Provincial Park. A group of residents from the Hamlet of Lake Newell Resort submitted a proposal to extend the Kinbrook Connection Pathway and connect it to a network of pathways in Lake Newell Resort. Council approved funding for this project through a Recreation Facility Improvement Funding grant (25%) and a Local Improvement tax for lot owners at the Hamlet of Lake Newell Resort (75%). Page 16 Once complete, these pathways will provide accessible outdoor recreation opportunities for residents and visitors alike. The portion that extends from the County facilities is well-travelled and we look forward to being able to offer longer walks and bike rides in the near future. The Kinbrook Connection Pathway will be a valuable recreational asset to the Brooks Newell Region for years to come! County 2023 Annual Financial Report Message from the Reeve Fire and Emergency Response is important to the safety of our municipality, and we believe in helping our neighbours whenever possible. Council approved a request to provide support in the form of fire apparatus, tenders, rapid response vehicles, and firefighters to assist with the wildfire burning out of control near Edson, AB at a special Council meeting in May. A total of 32 volunteer firefighters responded to the call for mutual aid. After everything was under control, a public recognition night was held for our responders to show our gratitude for their willingness to put themselves in harm’s way to protect the lives and livelihoods of others. Maintaining an effective network of first responder and fire prevention services is an ongoing commitment for the County and a priority investment. We celebrated the grand openings of fire halls in Patricia and Rolling Hills during Fire Prevention Week in October. Page 17 Message from the Reeve County 2023 Annual Financial Report Together with the City of Brooks and the Eastern Irrigation district, the County sponsored the International Federation of Agricultural Journalists Congress & Farm Tour, held in Olds from June 26 – July 3, 2023. This was an opportunity to showcase our region’s unique features and agricultural businesses to international visitors. Congratulations to Mr. Garnet Altwasser on his induction into the Canadian Agricultural Hall of Fame in recognition of his outstanding contributions to the Alberta and Canadian agriculture and food industry throughout his decades-long career. The County was pleased to nominate Garnet with strong support from across the Canadian Beef industry. Reeve A. Doerksen and Councillor H. Johnson attended the induction ceremony in Charlottetown, PEI in November. Garnet was honored locally with a well-attended open house at Cassils Hall in December. Page 18 Other ongoing projects worth noting include: Development of the Bassano Continuing Care facility in collaboration with the Town of Bassano, Newell Housing Foundation, the Brenda Strafford Association, and John Brown Architect. Options for improving traffic flow and eliminating safety issues during shift changes at the JBS Canada facility by developing a road connecting the parking lot to Gun Club Road. Approved funding for the development of a detailed Memorandum of Understanding for the Southern Alberta Energy from Waste Association facility project. Council recognizes and appreciates our County staff for their dedicated service to our County. The team effort led by Matt Fenske, CAO has provided stability that serves Council and County residents well! 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. We continue to livestream regular MPC and Council meetings and post the recordings to the County’s YouTube channel to facilitate public engagement. Photo: Jess Lunn County 2023 Annual Financial Report 2023 #myCountyofNewell Contest Page 19 First place - Leslie Smith “Watering the Crops & Farming in Rosemary” People’s Choice Award - Samantha Plett “Winter Collection” County 2023 Annual Financial Report 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 2023 audited Consolidated Financial Statements and to highlight key financial results that occurred during the year. Management at the County is responsible for information contained in the Annual Financial Report. 2023 Financial Highlights In 2023, the County implemented Public Sector Accounting Board (PSAB) section PS3280 Asset Retirement Obligations. PS3280 establishes standards on how to account for and report a liability for asset retirement obligations (ARO) in government financial statements. This change has been applied using modified retroactive application and prior periods have been restated. The following financial highlights take into consideration the restated amounts for 2022. Consolidated Statement of Financial Position The County improved its already strong financial position in 2023. Financial assets increased by $3.29 million while liabilities decreased by $4.17 million resulting in an overall increase in net financial assets of $7.46 million. Cash and cash equivalents decreased by $3.73 million due to the decrease in funds being held in temporary investments. Investments increased by $6.152 million related to the increase in the long-term portfolio. Unearned revenue decreased by $4.56 million due to recognizing revenue for work performed on capital projects. Non-financial assets, which consist primarily of tangible capital assets and inventory for consumption, increased by $10.3 million. The changes in net financial assets and non-financial assets resulted in a net $17.8 million increase in the accumulated surplus. Consolidated Statement of Financial Position Overall revenues were $2.9 million higher than projected coming in at 107.5% of budget. Noteworthy items on the revenue side included return on investments that was $657 thousand more than budget and other revenue $1.32 million more than budget due to $224 thousand of revenue recognized from rural water phase 2 deposits and $874 thousand of revenue received from the County’s response to wildfires in the Province. Photo: Darla Wiebe Page 20 County 2023 Annual Financial Report Expenses were $1.9 million lower than projected (94.2% of budget). Staffing costs were under budget due to positions which were budgeted for but not hired during the year, but were $1.03 million higher than previous year due to cost-of-living adjustments made during the year. Contracted services were under budget primarily due to lower-than-expected repairs and maintenance on waterlines. Materials, goods supplies, and utilities were under budget primarily due to a reduction in costs for usage of vehicles and equipment, such as fuel and the reduction in the use of maintenance materials, such as gravel. Transfers to organizations increased by $581 thousand over the prior year due to an increase in costs associated with funding agreements with our municipal partners, as well as additional funding approved by Council during the year. Other expenditures were higher than prior year due to the increase in the allowance of uncollectible tax provision. The increase in net tangible capital assets from the prior year resulted in the $491 thousand increase in amortization from the prior year. The County transferred $695 thousand to the Province for policing costs. The County ended the year with an Annual Surplus of $17.8 million. Consolidated Statement ofChange in Net Financial Assets Net financial assets increased by $7.46 million, for a total of $135 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 Change in Net Financial Assets Net financial assets increased by $7.46 million, for a total of $135 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. Cash and cash equivalents decreased by $3.73 million in 2023. Operations provided cash of $19.7 million, $16.7 million was used to purchase tangible capital assets, $6.2 million was used for investing activities, and $646 thousand was used to pay debt. Photo: Eric Harbinson Report from the Controller Page 21 County 2023 Annual Financial Report Report from the Controller MANAGEMENT REPORTING AND 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 Process On an annual basis, Council considers a proposed, as legislated, a four-year operating budget, 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 Procedures The 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 within the financial statements. Photo: Rebecca Arndt Page 22 County 2023 Annual Financial Report Purchasing Policy The 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. 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 POL-014-023, 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 AND ANALYSIS The 2023 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 Page 23 County 2023 Annual Financial Report 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 Page 24 County 2023 Annual Financial Report 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 3.81 in 2023. The County remains in a very strong financial position with $13.18 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. Photo: Samantha Plettt Report from the Controller Page 25 County 2023 Annual Financial Report 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. Page 26 County 2023 Annual Financial Report Report from the Controller 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. FLEXIBILITY 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. Page 27 County 2023 Annual Financial Report 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 $62.1 million. The County held outstanding debt balances representing 4.8% of this maximum allowable amount at the end of 2023. This leaves the County with approximately $59.1 million of borrowing room. Report from the Controller Page 28 County 2023 Annual Financial Report Report from the Controller Restricted Surplus Restricted surplus funds are included as part of the County’s accumulated surplus and are a critical component of the County’s long-term financing and capital plan. The County’s Restricted Surplus Policy POL-014-23 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. 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. Page 29 County 2023 Annual Financial Report Report from the Controller Tangible Capital Assets Significant acquisitions include: 3.61 million – Machinery and Equipment 3.26 million – Road reconstruction 1.94 million – Buildings 641 thousand - Vehicles 626 thousand – Bridges 246 thousand – Fire Apparatus 180 thousand – IT Infrastructure Work-in-Progress (WIP) increased by a net $6.99 million in 2023. Key changes include: 6.8 million – Distribution System (Water) 1.1 million – Land Improvements There were no tangible capital assets that were contributed during the year. The County’s tangible capital assets (TCA) increased by a net $9.62 million in 2023. Key changes included new asset acquisitions of $17.7 million (which includes WIP), $7.8 million in amortization expense, and asset disposals with a net book value of $252 thousand. Restricted Surplus Policy POL-014-23 specifies minimum balances to be maintained for the restricted surplus funds listed below. The County is in compliance with this policy as of December 31, 2023. Photos: Debbie Lea $ $ $ $ $ $ $ $ $ Page 30 County 2023 Annual Financial Report 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. 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, 2023 approximately 66% of the useful life of the County’s assets remains available to provide future services. Report from the Controller Page 31 County 2023 Annual Financial Report 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 Report from the Controller Government Transfers-to-Total Revenue This 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. Photo: Debbie Lea Page 32 County 2023 Annual Financial Report Agricultural Services Report Photo: Rebecca Arndt The ASB manages vegetation in municipal rights of ways, municipal 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 Seasonal 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 water ways 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. Photo: Rebecca Arndt Agricultural Service Board (ASB) The Agricultural Services Board (ASB) and subsequently the Agricultural Services Department is guided by 4 main sets of provincial legislation: the Agricultural Services Board Act, the Weed Control Act, the Agricultural Pests Act and the Soil Conservation Act. With guidance from this legislation your ASB enacts policy and programming to support the agriculture industry and residents. Although environmental programming and vegetation management are part of the day to day tasks, programming revolving around weed, pest and soil control are still the priority. Weed Control Page 33 County 2023 Annual Financial 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: 219 canola fields during flowering for signs of Clubroot 100 locations for grasshopper populations 825 sites for Coyote RAI (Relative Abundance Index) 1 potato field for signs of Bacterial Ring Rot 3 corn fields for signs of Fusarium graminearum 12 wheat fields for signs of Fusarium graminearum 2023 Programming CP line (66 miles, cost recovery) - GPS/inspect/control Road network - 602 miles sprayed – 480 miles of local roads and 122 miles of highways (under contract), selective control Bow River (60 miles of control work) - spraying and picking Inspected EID delivery system 500 acres controlled under the Private Weed Control policy Controlled weeds in 11 Grasslands Public School Grounds (Cost recovery) Controlled weeds in parks, municipal owned land, and cemeteries (Bassano, Brooks and Duchess - cost recovery) 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. Agricultural Services Report Page 34 County 2023 Annual Financial Report The ASB also offers programming and sell pest control products to help mitigate the effects of pests in our County. They include: Trap Rentals – Skunk/Racoon – 8 renters, 214 rental days, sold 1 new trap Magpie traps – 3 Renters – 20 rental days, sold 2 new traps Grain bugs and Richardson Ground Squirrels – (Sold 11 Phostoxin Flasks, 3 landowners) Monitored 3 hawk nesting poles on County-owned land for nests Disinfected 3 potato cellars for storage pests Soil Conservation Soil erosion concerns were almost completely halted between 2022 and 2023. Producers were well prepared going into the winter and mother nature cooperated. 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 CAP grant help. In 2023 the following opportunities were available and utilized: 5 Environmental Farm Plans completed; 3 others started. Nutrient Management Seminar series - 550 Participants Grasslands Know your Food Ag day – 750 Participants Your ASB is also proud to sponsor and work with: Alberta Farm Animal Care Association Farm Safety Center Farming Smarter Alberta Invasive Species Council Ag For Life Brooks Fish and Game – 8800 trees planted, Helped irrigate tree planting. Helped with site maintenance. EID Tree Planting Aided in planting and mulching 4 sites. Aided in maintenance of 6 sites. Agricultural Services Report Page 35 County 2023 Annual Financial Report The ASB has a number of equipment rentals available. Rental units are charged out as close to cost recovery as possible. Usage for 2023 is as follows: Loading Chute and Panels – 11 renters Calf table – 3 renters Livestock scale – 7 renters Boomless sprayers (2) – 5 renter Insecticide Sprayer – 2 renters Eco Bran Spreaders – 1 renter 3 point hitch sprayer – 3 renters Quad Sprayer – 2 renters Double disc drill - 12 renters, 1160.4 acres No Till Drills (2) – 63 renters, 4167.2 acres Brillion Seeders (2) – 6 renters, 87.8 acres Tandem Axle BBQ – 22 users Mowing The ASB operates 2 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 3849 miles (one way) on the roadsides and invested over 2020 hours maintaining vegetation in hamlets, subdivisions and airports. Rental Equipment Photo: Darla Wiebe Agricultural Services Report Page 36 County 2023 Annual Financial Report Some other great programs and activities include the Calgary Stampede Farm Family Award, Rural Beautification Program, seed cleaning plant inspections/licensing, roadside seeding and the ASB is happy to offer various pest and agronomic recommendations. Emerson Bridge Park Campground Emerson Bridge 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 12 full service sites 51 power sites, 21 non‐power sites and 7 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 2023 season had great camping weather and many took advantage of the longer term rental options. Overall occupancy was 40% for the season, with Power coming in at 49% occupied and non power being 13% occupied. Revenue for the season was up from 2022, coming in at $127,509.00 compared to $91,051.63. 2023 saw a marked increase in private groups and single units taking advantage of out of season camping. Other Programming Photos from the 2023 Rural Beautification Program Agricultural Services Report Page 37 County 2023 Annual Financial Report Photo: Samantha Plett 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 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 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 Agricultural Services Report Page 38 County 2023 Annual Financial Report Municipal Services Report Municipal Enforcement Services Municipal Services consists of multiple 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 and accomplishments from departments in 2023. 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. Partnership services are cost recovered on an hourly rate basis under contract. The Department continues to engage and educate the public. Monthly priorities 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 704 hours, which was down from 816 hours in 2022. In addition to this, the Department patrolled County jurisdictions, including rural areas, multi-lot subdivisions, and Hamlets. The Department issued 398 tickets and 279 warnings related to Provincial offences within the County and partner jurisdictions. The Top Five Provincial offenses, representing 64% of all offences in 2023, included violations of: Exceeding the Maximum Speed Limit (256), Operating Unregistered Motor Vehicle/Trailer (70), Fail to Provide Peace Officer with Financial (Insurance) Responsibility Card (45), Driver Not Wearing Seatbelt (33), and Failure to Produce Registration (25). 13 tickets and 77 warnings were also issued related to Bylaw offences within the County and partner jurisdictions. The Top Five Bylaw offenses, representing 73% of all Bylaw offences in 2023, included violations of: Unsightly Property (23), Sidewalk Snow/Ice Removal (20), Detached Trailers (9), Dog Control: At Large (9), and Boating Safety & Aquatic Invasive Species (5). Photo: Debbie Lea Page 39 County 2023 Annual Financial Report Municipal Services Report Public Works & Engineering Services The Public Works & Engineering Departments collectively and collaboratively manage 1457 km of gravel road and 233 km 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 km 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 performed 9,171 km of gravel road surface maintenance, compared to 9,501 km in 2022. Additionally, the Departments re-surfaced 304.4 km, or 20.8% of the total gravel road surfaces in the County, compared to 297.8 km, or 20.4% in 2022. The 2023 program consumed 36,333.5 cubic meters of crushed aggregates and was completed at a total cost of $525,220.88 averaging $1,725.43/km compared to 34,278 cubic meters at a total cost of $469,606 averaging $1,575/km in 2022. The Departments offer Dust Abatement services where 119,300 linear meters (119.3 km) of dust abatement were applied to gravel surfaced roads compared to 115,220 linear meters (115.22 km) in 2022. The program consisted of 348 applications from Residential (315) and Non-Residential (33), compared to 343 applications from Residential (312) and Non-Residential (31) in 2022. Including County Aggregate Haul Roads and intersection treatments the 2023 program consumed 2,263,282 litres of dust abatement product over 14 working days with two active crews, at a total cost of $470,698.86, averaging $3.95/Lm. In comparison, the 2022 program consumed 2,199,797 litres, taking 14 working days to complete, at a total cost of $506,208.06, averaging $4.39/Lm. Page 40 County 2023 Annual Financial Report Municipal Services Report The Department completed roadside drainage improvements and/or shoulder pulls on the following: RR143 (6282 meters) from TR193 to TR200, shoulder pull was started in 2022, completed in spring 2023, where work included improvements to drainage improvements and road horizontal alignments. RR134 (3200 meters) from TR164 to HWY535, shoulder pull and drainage improvements. RR133 (3200 meters) from TR164 to HWY535, shoulder pull and drainage improvements. TR192 (2295 meters) from HWY36 to RR154, shoulder pull. RR155 (5378 meters) from TR192 to HWY1, shoulder pull. The Department continues working with professional engineering services to update the Rural Road Study, with finalization of the Study including Budget Plan for the next 10 years, in early 2024. In addition to the gravel road network the County provides a ban free paved road network. The ban free driving surface permits 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. TR184 (Silver Sage Road) from RR145 west to Hwy 36 (7.88 km) received an asphalt overlay at a cost of $2.01 million dollars. In 2024 planning and design of an appropriate maintenance strategy for Range Road 150 from Highway 1 south to Highway 542 (Cassils Road) is scheduled. The Departments, now in the twelfth year of partnership with the Eastern Irrigation District (EID), continue with budgeted improvements of $2 million annually ($1 million each party), as approved by EID Board and County Council. In 2023, Phase II and Phase III of Rosemary planned works did not proceed as intended, with Administrations presenting findings to the EID Board of Directors and County Council for decision-making, where direction to relocate to Rolling Hills was provided. 2022 included the completion of 12.8 km of drainage improvements in Phase I of Rosemary. In 2021, the partnership completed 5.6 km as part of Phase I in Rosemary. Page 41 County 2023 Annual Financial Report Municipal Services Report Previously completed projects include Cassils (15.2 km), Rolling Hills (36.8 km), Scandia (33.0 km), Rainier (65.0 km), and Millicent (28.8 km), and more recently Bow City (6.0 km). The Kinbrook Connection Pathway Partnership, a 12.4 Km long pathway connecting Kinbrook Island Provincial Park and the City of Brooks remains under construction. The southerly 4.0 Km connecting Kinbrook to Bantry Bay Estates was paved in 2023, with amenities (benches, sunshades, educational/informative signage) to be installed in 2024 when the remaining 6.0 Km of pathway, amenities, and the installation of the pedestrian bridge will be completed. A Lake Newell Resort Pathway was proposed to Council by a committee of residents from the hamlet of Lake Newell Resort in late 2023. A Local Improvement was advertised proposing residents of the hamlet of Lake Newell Resort funding 75% and County 25%, with an estimated cost of $1 million dollars to construct. Design is expected to be complete early 2024 with tendering of the work tentatively scheduled for May. Water Services The County Rural Water System consists of 1189 km of water line servicing residences and businesses. The number of active water users as of December 31, 2023, is 1338 active users of 1709 registered users, or 78% active. Both active and registered users’ numbers are up respectively as CNWP Phase II continues to be constructed serving those residences and businesses that registered compared to the previous year (2022) where there were 1231 active users of 1566 registered, or 79% active. Page 42 County 2023 Annual Financial Report Municipal Services Report Closing Remarks After fifteen years, it continues to be my pleasure to lead the Municipal Services Department in delivering cost effective public services to the rate payers of the County. This team remains focused on delivering high-quality, low-cost services, without compromising safety of the public. Respectfully Submitted, Mark Harbicht, Director of Municipal Services Photo: Rachelle Fiset CNWP Phase II Contract 1 was completed in 2023 servicing another 127 registered users with potable water. Phase II Contract 2 (Tilley & Rolling Hills) remains under construction and it’s July completion in 2024 will service an additional 132 registered users. Phase II Contract 3 (Bassano, Gem & Rosemary) remains under construction, scheduled to be operational by November of 2024 and will service an additional 102 registered users. Phase II Contract 4 (Patricia, Scandia, Rainier & Bow City) tender closes March 21, 2024, is scheduled for construction following tender award. This contract work is expected to be complete spring 2025 and will service an additional 91 registered users. Page 43 County 2023 Annual Financial Report Planning & Development Report Subdivisions The Planning and Development department continues to work with the public to make their development goals a reality. The new Municipal Development Plan (MDP) was adopted in the spring of 2023. The document provides high-level policy to guide development in the County to the year 2045 and provides clear direction to the County’s social, environmental, and economic wellbeing over time. In 2023, the department reviewed and revised the municipal reserve policy to better reflect the land values of today, revamped application forms to create efficiencies, and updated the safety codes policy. The department intern wrapped up his time with the County in August, and this internship program proved to be valuable. The program aims to introduces new post secondary graduates to municipal government. While the program does take a considerable amount of staff time to manage, the payoffs are great for the intern and the County. Our intern took a lead role in the development of the Municipal Development Plan and assisted in updates to the municipal reserve policy. He led the public engagement strategy for future development of the Bassano airport, helped with planning the 2023 CPAA conference and assisted Agriculture Services in the annual river walk. The department received numerous inquiries regarding subdivision of land in 2023. There was a total of 12 notice of applications circulated, 13 subdivisions were approved by the Municipal Planning Commission (MPC) and seven were finalized to allow for registration at land titles. 2023 saw the creation of 20 new lots, and 10 lots where the boundary lines were adjusted. This includes 11 new lots at the Bassano airport. County Subdivision Stats Page 44 Planning & Development Report Road allowances are lands where a public road is, or could be, constructed to provide physical access to lands. The allowances are owned by the province, and under the care and control of the municipality. If an adjacent landowner would like to utilize an undeveloped road allowance for purposes other public access, they need to contact the County. There were three road closure applications received in 2023 - one for irrigation expansion, one to close a road to reduce trespassing on adjacent land, and one to rectify an encroachment. All three road closures have received first reading and gone through the public hearing process. The County is now waiting on approval from the Minister of Transportation. Second and third reading was giving to a road closure that was initiated in 2021. Two road closure applications initiated in 2022 received Ministerial approval in 2023 and have entered into a lease agreement for the use of the lands. County 2023 Annual Financial Report 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 2023, six land use amendment applications received third reading. Two of these applications were for business opportunities including an electric vehicle charging station and a landfill facility. Two of the applications were to allow for agriculture practices on small parcels previously zoned residential, one was for the purpose of subdivision, and one was to amend the hamlet boundaries after the adoption of the Municipal Development Plan. Subdivision and Development Appeals The Subdivision and Development Appeal Board (SDAB) hears appeals regarding decisions made by the MPC and renders decisions based on the evidence presented. There was one appeal heard by the SDAB in 2023. A decision to approve an application for a Self Storage Facility in the Business, Hamlet District in the hamlet of Lake Newell Resort was appealed by neighbouring landowners. The Appeal Board upheld the decision of the MPC. The appeal was denied, and the development was approved. Road Closures Land Use Amendments Land Use Amendments Page 45 County 2023 Annual Financial Report Planning & Development Report A Development Permit is required for most types of new construction, redevelopment projects, and additions to ensure compliance with the Land Use Bylaw and statutory plans. In 2023, residential development permits included nine manufactured homes, 13 new single-family dwellings, one moved in dwelling, and four residential additions. Additions to JBS, ICI, and the Rolling Hills Campground were also approved by the Municipal Planning Commission. Development permits approved for new businesses included: Trucking business and associated shop Mobile mechanic Self Storage Intensification of an Agriculture Business Firewood supply company Industrial scale solar Class 2 landfill Irrigation business 2023 Development Permit Types Residential Non-Residential Home Occ Development Permits Development Permits Photo: Susan Yokoyama Photo: Rebecca ArndtPhoto: Rebecca Arndt Page 46 Planning & Development Report Construction Permits # Building Permit - 17.8% Electrical Permit - 48.3% Gas Permit - 20% Plumbing Permit - 9.8% Private Sewage Permit - 4.3% Construction Permits County 2023 Annual Financial Report Construction permits are required by the Provincial Government under the Alberta Safety Codes Act. Accredited municipalities, like the County, are responsible for the administration of the Safety Codes Act. Park Enterprises reviews all construction permit applications for code compliance and issues the permits on behalf of the County. Construction Permits The Planning and Development department manages land and development related matters in the County. We are committed to responsible planning and sustainable development to ensure the continued growth of the region. Respectfully Submitted, Maria Jackson, Planning & Development Supervisor $ Page 47 SECTION 2 CONSOLIDATED FINANCIAL STATEMENTS County 2023 Annual Financial Report Page 48 County 2023 Annual Financial Report Page 49 County 2023 Annual Financial Report Page 50 County 2023 Annual Financial Report Page 51 County 2023 Annual Financial Report Page 52 County 2023 Annual Financial Report Page 53 County 2023 Annual Financial Report Page 54 County 2023 Annual Financial Report Page 55 County 2023 Annual Financial Report Page 56 County 2023 Annual Financial Report Page 57 County 2023 Annual Financial Report Page 58 County 2023 Annual Financial Report Page 59 County 2023 Annual Financial Report Page 60 County 2023 Annual Financial Report Page 61 County 2023 Annual Financial Report Page 62 County 2023 Annual Financial Report Page 63 County 2023 Annual Financial Report Page 64 County 2023 Annual Financial Report Page 65 County 2023 Annual Financial Report Page 66 County 2023 Annual Financial Report Page 67 County 2023 Annual Financial Report Page 68 County 2023 Annual Financial Report Page 69 County 2023 Annual Financial Report Page 70 County 2023 Annual Financial Report Page 71 County 2023 Annual Financial Report Page 72 County 2023 Annual Financial Report Page 73 County 2023 Annual Financial Report Page 74 SECTION 3 FINANCIAL & STATISTICAL County 2023 Annual Financial Report Page 75 Financial and Statistical County 2023 Annual Financial Report Demographics & Other Statistics Page 76 Significant items driving variances in total expenses trends across the period include: Salaries, wages and benefits: Increased in 2022 and in 2023 due to cost-of-living adjustments. Materials, goods, supplies and utilities: Increasing water usage charges from NRSC as additional water users access the rural system ($494 thousand in 2019 to $734 thousand in 2023). 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. 2019 ($976 thousand), 2020 ($816 thousand), 2021 ($1.91 million), 2022 ($2.02 million), 2023 ($2.65 million). Policing costs transferred to Province in 2020 ($215 thousand), 2021 ($390 thousand), 2022 ($531 thousand), 2023 ($695 thousand). Other expenditures: Adjustment to the allowance for doubtful property taxes receivable in 2019 ($561 thousand), 2020 ($537 thousand); 2021 ($212 thousand); 2022 ($92 thousand), 2023 ($253 thousand). Discounts on taxes in 2020 ($1.8 million); 2021 ($687 thousand); 2022 ($608 thousand), 2023 ($719 thousand). Amortization: Total cost of tangible capital assets (net of work-in-progress assets) has increased from $279 million in 2019 to $296 million in 2023 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. Financial and Statistical County 2023 Annual Financial Report Expenses by Object Page 77 Financial and Statistical County 2023 Annual Financial Report Expenses by Object Page 78 Financial and Statistical County 2023 Annual Financial Report Expenses by Function Page 79 Property taxes continue to be the most significant source of revenue for the County, comprising from 71% to 80% 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 Other revenue in 2023 includes revenue received from the County’s response to wildfires in the Province Financial and Statistical County 2023 Annual Financial Report Revenues by Source Page 80 Financial and Statistical Capital Expenditures by Group County 2023 Annual Financial Report Page 81 Financial and Statistical County 2023 Annual Financial Report Page 82 Capital Expenditures by Function County 2023 Annual Financial Report https://www.facebook.com/CountyofNewell https://twitter.com/CountyofNewell https://www.instagram.com/countyofnewell/ @CountyofnewellAbCa administration@newellmail.ca (403) 362-3266 and stay connected Connect With Us