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Home My WebLink About2024 Annual ReportFINANCIAL REPORT ANNUAL 2024 For the year ending December 31, 2024 C O U N T Y O F N E W E L L , A L B E R T A , C A N A D A County of Newell, Alberta, Canada 2024 Annual Financial Report For the fiscal period ending December 31, 2024 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 2024 Annual Financial Report is available online at www.countyofnewell.ab.ca Cover Photo by Leslie Smith Cover and other credited photos used throughout this document were submitted to the #myCountyofNewell photo challenge through Newell Connect. 2 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...................................................... Independent Auditors’ Report.......................................................... Management 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............................................... 2024 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 1 Introduction SECTION 2 Consolidated Financial Statements TABLE OF CONTENTS 3 5 6 7 10 11 12 13 18 30 35 40 46 48 49 50 51 52 53 54 71 73 74 76 77 78 79 2024 Annual Financial Report INTRODUCTION SECTION ONE 4 VISION & MISSION M I S S I O N To encourage and attract sustainable growth and support a high quality of life. V I S I O N Through leadership, partnership, and effective policy, the County provides services, structure, and stability to its residents. Tammy Karasek Debbie Lea 2024 Annual Financial Report 5 Seek cooperation with individuals, governments & organizations Strive for long-term financial stability Preserving land for agriculture Plan for future growth & development Support development & sustainability of strong infrastructure Provide consistent & efficient services Promote open communication between staff, Council & public 2024 Annual Financial Report GUIDING PRINCIPLES 6 2024 Annual Financial Report COUNTY PROFILE 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 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. Karma Heninger 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. The County has positive working relationships with our urban neighbours, which improves the quality of services provided to all our residents. The County has a dynamic and diverse economy driven by three pillars: Agriculture, Energy Production, and Tourism. There are approximately 500 primary agricultural producers in the County, and approximately 1,500 non-agricultural business enterprises within the footprint of the Newell area. 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. 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 industrial assessment values and related tax revenues. Tammy Karasek 7 County 2024 Annual Financial Report 2024 Annual Financial Report 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. Lance Liboiron 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. COUNTY PROFILE 8 County Hamlet Populations 2021 Bow City 16 Cassils 22 Gem 29 Lake Newell Resort 437 Patricia 88 Rainier 21 Rolling Hills 263 Scandia 169 Tilley 335 Total 1382 Population: (2024): 7465 Unemployment Rate (2021): 8.6% Increase in population from 2021: 0.81% Median Household Income (2021): $93,750 Median Age: (2021) 39.2 Number of Farms: 727 2024 Annual Financial Report TORXEN ENERGY LTD JBS FOOD CANADA ULC. CANADIAN NATURAL RESOURCES LTD. NGTL GP LTD. ATCO ELECTRIC LTD. CARDINAL ENERGY LTD ALTALINK MANAGEMENT LTD. FOOTHILLS PIPE LINES (ALTA.) LTD. IPC CANADA LTD. INTER PIPELINE LTD. TOP TEN TAXPAYERS Denise Bouvier Debbie Lea Tammy KarasekBecky Senecal COUNTY PROFILE 9 2024 Annual Financial Report COUNTY COUNCIL Greg Skriver 403-409-4281 skriverg@newellmail.ca DIVISION 5 Cassils & Lake Newell Resort Kelly Christman (Deputy Reeve) 403-793-0014 christmank@newellmail.ca DIVISION 6 Bassano Ellen Unruh 403-793-3369 unruhe@newellmail.ca DIVISION 7 Rosemary Amanda Philpott 403-362-1949 philpotta@newellmail.ca DIVISION 8 Duchess Dan Short 403-363-0538 shortd@newellmail.ca DIVISION 1 Rolling Hills Adena Skanderup 403-633-2224 skanderupa@newellmail.ca DIVISION 2 Tilley Lynette Kopp 403-363-5677 koppl@newellmail.ca DIVISION 3 Patricia Holly Johnson 403-363-4701 johnsonh@newellmail.ca DIVISION 4 Scandia/Rainier/Bow City Arno Doerksen (Reeve) 403-363-0253 doerksena@newellmail.ca DIVISION 9 Gem Neil Johnson 403-793-4206 johnsonn@newellmail.ca DIVISION 10 Brooks Laurie Baron 10 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 Personnel & Safety Services Newell Regional Fire Chief Director of Corporate Services 2024 Annual Financial Report ORGANIZATIONAL CHART 11 2024 Annual Financial Report 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, 2023. 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 Government Finance Officers Association. GFOA CANADIAN AWARD FOR FINANCIAL REPORTING 12 2024 Annual Financial Report Our primar y responsibility as a Council is to set the overall direction for the County of Newell 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 final year of a four-year ter m, and has made significant progress on items identified during the strategic planning session held shor tly after the 2021 election, and then confir med during a strategic planning session in April 2024. Here are some of the highlights from 2024. After making the decision in December 2023 to proceed with an Electoral Boundar y Review based on a reduction from ten to nine Councillors, Council approved four concept maps with proposed boundaries and a public engagement campaign was initiated to gather feedback from ratepayers. A final map was developed based on the feedback received and Bylaw 2073-24 Electoral Division Boundaries was passed on July 25, 2024. For the 2025 Municipal Election, nine Councillors will be elected. If you want to confirm what electoral division you’ll be voting in before October 2025, look up your address on our Public Web Map > https://countyofnewell.ab.ca/map-room. The color-coded electoral divisions layer is on by default. Promoting agricultural education in schools has been high on the list of Council’s priorities. In Februar y, students from Rolling Hills Agricultural Academy made a presentation to Council highlighting their effor ts to provide hands-on lear ning focused on the Ag 1000 curriculum and Green Cer tificate courses. A small mixed far m was developed on a por tion of the Rolling Hills school grounds to teach students about livestock and crop production. Council provided fur ther suppor t in April by waiving the development per mit fee, retur ning funds back to Rolling Hills School to be used for this initiative. MESSAGE FROM THE REEVE 13 2024 Annual Financial Report MESSAGE FROM THE REEVE Council acknowledges the impor tance of a good fire and disaster ser vices program, and several strategic priorities have become a focus. After completing an extensive review, Behr Integrated Solutions Inc. presented an updated Fire Ser vices Needs Assessment and Fire Ser vices Master Plan. The goals of this review were to enhance firefighter safety, control costs, containment, identify ser vice level requirements that meet current and future needs, and increase ef ficiency and ef fectiveness. The Fire Protection Ser vices agreement with the Town of Bassano was renegotiated with the County assuming gover nance and operational control of the Bassano Fire Depar tment. A larger more functional facility was purchased to ser ve as the Fire Hall and renovations on that structure began. Phase one of the Newell Regional Emergency Management Plan was also completed. CDC South After many meetings and discussions, lease agreements were approved in December of 2024, allowing the initiative to proceed. A Project Coordinator was hired in Januar y 2025 to oversee the initiative and has been hard at work meeting with potential users and promoting the facility. Another of Council’s strategic priorities was to see the Crop Diversification Centre (CDC) South revitalized and we are happy to say that facilities will be available in 2025. Two members-at-large were appointed to the CDC South Revitalization Committee in March 2024 to work with four County Councillors. Together, they set a strategic plan for the facility with the objective of attracting operations and research programs to enhance agricultural production and suppor t research initiatives throughout Alber ta. 14 2024 Annual Financial Report In addition to several meetings with Premier Danielle Smith, and other Provincial Cabinet Ministers, Council under took several advocacy effor ts in 2024. A formal letter was sent to Municipal Af fairs expressing concer ns with specific provisions included within Bill 20, the Municipal Af fairs Statutes Amendment Act, that would negatively impact municipal autonomy. This feedback was incorporated into amendments. Council approved a submission on a public consultation outreach ef for t regarding proposed Canadian Sustainability Disclosure Standards. A response was submitted in opposition to sustainability repor ting standards because they would create significant challenges and risks for municipalities and small r ural businesses. At RMA’s 2024 spring convention, the County sponsored an emergent resolution opposing the Federal Zero Emission Vehicle (ZEV) mandate, where it passed with significant suppor t. The ZEV mandate is expected to dispropor tionately impact rural and remote communities by increasing production costs for our rural industries, negatively impacting our cost competitiveness, and leading to adverse economic impacts. The RMA has indicated that they will continue to follow up with the federal Minister of Environment and Climate Change and other relevant agencies for a for mal response. Read the resolution here > Opposition to Federal Zero Emission Vehicle Mandate Colette Jako Samantha Plett Debbie Lea Taking inspiration from a resolution submitted to the Saskatchewan Association of Rural Municipalities, Council established a committee to develop a similar resolution in opposition to the Canadian Net-Zero Emissions Accountability Act, identifying specific areas where the RMA could apply their advocacy ef for ts. The resolution “Opposition to the Canadian Net-Zero Emissions Accountability Act” was passed at the Spring 2025 RMA Convention. We look forward to providing an update in next year’s Annual Repor t. MESSAGE FROM THE REEVE 15 2024 Annual Financial Report MESSAGE FROM THE REEVE In March, Council endorsed the concept for the Newell Regional Hydrogen Hub, a pilot project that will install hydrogen fuel conversion kits on a selection of the County’s diesel fleet to evaluate hydrogen as a potential alter nate fuel source. This project is a joint ef for t between the Brooks-Newell Region Economic Development and IEPS Canada Ltd. Other public and private sector organizations have been encouraged to par ticipate. A temporar y hydrogen fueling station is proposed to be established for the pilot project and data gathered will be used to determine the feasibility of locally produced and distributed hydrogen within the region. Recreation is an impor tant feature of any municipality, and we continue to work towards sustainable funding for facilities and recreation ser vices. 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 2024 include upgrades for the Cassils Community Centre equipment storage, floor repairs and resurfacing for the Duchess Recreation Centre, upgrades to the EID Historical Park Scandia Grain Elevator, and replacement of the grandstand seating at the Patricia rodeo grounds. Public (Municipal) Reser ve funding was also allocated to the Duchess Minor Ball Little League Association for shale at the ball diamonds. We strive to provide consistent funding for recreation providers through Recreation Ser vice Agreements with our urban municipal par tners and local agricultural societies. For the most par t, recreation ser vices in the County are provided by volunteers – we are ver y appreciative of their ef for ts! Scandia Grain Elevator Restoration 16 2024 Annual Financial Report MESSAGE FROM THE REEVE As we look ahead, several major infrastructure projects are moving from planning to progress. Construction on the Lake Newell Resor t Pathway is set to begin this year – and will directly connect to the Kinbrook Connection Pathway, expanding recreational oppor tunities for both residents and visitors by enhancing access to our region’s natural beauty. In addition, the 2025 Street Improvement Program at Lake Newell Resor t will include major infrastructure upgrades to Blue Heron (Block 1) and White Pelican (Block 4), as engineering assessments of road conditions, drainage, and underground ser vices, deemed these roadways as having reached end of life. Work will begin in spring/summer 2025. Our rural water network continues to grow: Phase II Contract 3, (ser vicing Bassano, Gem, and Rosemar y) is under construction and will bring clean water to 102 additional users by June 2025. Contract 4 (ser vicing Patricia, Scandia, Rainier, and Bow City) will follow closely, connecting 91 more users by July 2025. We are proud to suppor t strategic economic development through critical transpor tation upgrades. As par t of the JBS Agri-Food Cor ridor initiative, the County will receive $1.8 million in funding—$1.2 million through the Strategic Transpor tation Infrastructure Program (STIP) and $600,000 for upgrades to the Provincial Highway 873 intersection. Construction is expected to begin soon and finish by the fall. Finally, with the signing of a Memorandum of Agreement with Global Green, the Souther n Alber ta Energy-from-Waste project is of ficially moving forward—marking a significant step toward more sustainable waste management for the region. Council recognizes and appreciates our County of Newell staf f for their dedicated ser vice. The team ef for t led by Matt Fenske, CAO, has provided stability that ser ves Council and County residents well! As always, please feel free to contact your Councillors or staf f by phone or email. Key contacts are available on our website www.countyofnewell.ab.ca. As par t of our community engagement effor ts, Council places priority on obtaining and providing accurate infor mation in response to questions or concer ns. We remind residents that Council meetings are livestreamed and residents can submit questions for consideration by Council at the beginning of each meeting. Previous Council meetings can be accessed through the County’s YouTube channel. 17 Leslie Smith 2024 Annual Financial Report INTRODUCTION Consolidated Statement of Financial Position Consolidated Statement of Financial Activities The Annual Financial Repor t of fers readers a clear view of the County’s financial activities and available resources. It ser ves as a tool for analyzing the key elements of the 2024 audited Consolidated Financial Statements and highlighting significant financial outcomes for the year. County of Newell management is responsible for the accuracy and completeness of the infor mation presented in this repor t. The County improved its already strong financial position in 2024. Financial assets increased by $15.3 million while liabilities increased by $1.3 million, resulting in an overall increase in net financial assets of $14.0 million. Cash and cash equivalents increased by $6.52 million due to the increase in funds being held in the current account and temporar y investments. Investments increased by $5.34 million related to the increase in the long-ter m por tfolio. Trade and other receivables increased by $3.35 million due to a significant outstanding receivable from the Province. Unearned revenue increased by $1.22 million due to an increase in defer red tax revenue and grant funds awarded for capital projects that will car r y forward into 2025. Non-financial assets, which consist primarily of tangible capital assets and inventor y for consumption, increased by $6.36 million. The changes in net financial assets and non-financial assets resulted in a net $20.37 million increase in the accumulated surplus. Overall revenues were $4.46 million higher than projected coming in at 111.1% of budget, which was an increase of $3.23 million over 2023. Notewor thy items on the revenue side include return on investments that was $3.29 million more than budget and $2.80 million higher than the 2023 investment income ear ned. Net proper ty tax revenue also rose by $768 thousand over the previous year, due in par t to a $1.34 million increase in total proper ty tax revenue, of fset by an additional $571 thousand in requisitions. Overall expenses were $2.56 million below budget, coming in at 92.7% of projected spending. However, expenses were still $1.39 million higher than in 2023. Staf fing costs were under budget due to unfilled positions, though they rose by $560 thousand compared to the previous year, largely due to approved cost- of-living adjustments. Contracted ser vices came in under budget and were $103 thousand lower than in 2023, primarily due to reduced spending on conferences, memberships, and engineering fees. Spending on materials, goods, supplies, and utilities was also under budget but exceeded 2023 levels by $504 thousand, mainly due to increased operating costs for vehicles and equipment—including fuel, repairs, and maintenance. Other expenditures decreased from the prior year, driven by a lower provision for uncollectible taxes and a reduced proper ty tax discount resulting from fewer residents paying before the payment deadline. REPORT FROM THE CONTROLLER 2024 FINANCIAL HIGHLIGHTS 18 2024 Annual Financial Report Consolidated Statement of Change in Net Financial Assets Net financial assets increased by $14.0 million, for a total of $149 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 of Cash Flows Cash and cash equivalents increased by $6.52 million in 2024. Operations generated cash of $26.5 million with $14.5 million allocated to purchase tangible capital assets, $5.34 million invested in interest generating instruments and $93 thousand applied to pay down debt. Administrative expenses in 2024 were lower than budget, and higher than 2023 by $236 thousand due to the increase in salaries and benefits costs associated with the cost-of-living increase. Roads, streets, walks and lighting expenses were lower than budget and $1.03 million higher than 2023 due to an increase in salaries and benefits and increased costs associated with usage of equipment and vehicles such as fuel, repairs, and maintenance. There was also an increase in bridge materials and amortization expenses. The County paid $788 thousand in 2024 to the Province for policing costs. The final outcome was that the County ended 2024 with an annual surplus of $20.37 million. 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 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. REPORT FROM THE CONTROLLER MANAGEMENT REPORTING & CONTROL 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. 19 2024 Annual Financial Report External Audit Purchasing Policy Investment Policy Restricted Surplus Policy REPORT FROM THE CONTROLLER The Municipal Government Act requires Council to appoint independent auditors to provide an opinion on whether the County’s financial statements fairly represent its operating results and financial position in all material respects. These auditors have full access to all County records and meet regularly with staff to discuss audit findings, as well as any new policies or procedures. Additionally, they provide a management letter that offers observations and recommendations related to internal controls. While Council engages an independent auditor to provide an opinion on the financial statements, it is County management that holds responsibility for preparing the statements and ensuring the accuracy, integrity, and objectivity of the financial information and disclosures they contain. The County ensures that consistent procedures are followed for purchases through Purchasing Policy 2018-PAD-051, which sets expenditure limits. The policy ensures that items purchased have been approved through the budget process or by separate resolution of Council. The County’s excess funds are invested in accordance with Investment Policy POL-052-24, which prioritizes the preservation of capital, maintenance of liquidity, and achievement of a competitive rate of return. All municipal investments are subject to strict legislative requirements under the Municipal Government Act, and the County’s investment policy fully complies with these regulations. Through Restricted Surplus Policy POL-014-025, the County has established specific restricted surplus funds to support emergent financial needs, stabilize tax rates, and set aside reserves for the replacement of vehicles, machinery, equipment, infrastructure, and facilities. Maintaining financial health and stability is the guiding principle behind this policy. Lena Neufeld Tammy Karasek 20 2024 Annual Financial Report The 2024 Consolidated Financial Statements have been prepared in accordance with Public Sector Accounting Standards (PSAB). These statements offer a snapshot of the County’s financial position as of December 31, 2024, along with the results of operations and changes in cash flow and net assets over the year. However, while they provide valuable financial insights, the consolidated statements alone do not fully reflect the County’s overall financial health or its performance within the broader economic and fiscal context. The Annual Financial Report aims to enhance and clarify the information presented in the financial statements by applying PSAB’s Statement of Recommended Practices (SORPs), specifically SORP-4: Indicators of Financial Condition. This additional context helps users better understand the financial risks the County faces in sustaining its current programs and services, as well as the policy and operational decisions required to support long-term financial health. While this SORP is not part of Generally Accepted Accounting Principles (GAAP) and is not mandatory for governments to implement, it offers valuable guidance. SORP-4 recommends that, at a minimum, indicators related to sustainability, flexibility, and vulnerability be considered when assessing a government’s financial condition. The following sections provide definitions of these key indicators, along with selected measures for each. 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 FINANCIAL INDICATORS DISCUSSION & ANALYSIS 21 2024 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 decreased by 0.14 in 2024. The County remains in a strong financial position with $13.04 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. REPORT FROM THE CONTROLLER 22 2024 Annual Financial Report 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. REPORT FROM THE CONTROLLER 23 2024 Annual Financial Report Debt Servicing Costs-to-Revenues REPORT FROM THE CONTROLLER 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. 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. Tammy Karasek Debbie Lea 24 2024 Annual Financial Report Debt Limits and Debt Payments The County is limited in the amount of debt it can incur beyond the limitations specified in Alberta Regulation 255/00. The maximum allowable debt is approximately $66.9 million. The County held outstanding debt balances representing 4.3% of this maximum allowable amount at the end of 2024. At that time, the County’s outstanding debt represented just 4.3% of this limit, leaving approximately $64.07 million in available borrowing capacity. REPORT FROM THE CONTROLLER 25 2024 Annual Financial Report Restricted Surplus Restricted 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 POL-014-25 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. REPORT FROM THE CONTROLLER 26 2024 Annual Financial Report Tangible Capital Assets Restricted Surplus Policy POL-014-25 specifies minimum balances to be maintained for the restricted surplus funds listed below. As of December 31, 2024, the County is in compliance with this policy. The County’s tangible capital assets (TCA) increased by a net $6.57 million in 2024. Key changes include new asset acquisitions of $15.3 million (which includes WIP), $8.3 million in amortization expense and asset disposals with a net book value of $385 thousand. REPORT FROM THE CONTROLLER Ben Commodore Significant acquisitions include: $1.76 million – Machinery and equipment $1.04 million – Road reconstruction $13 thousand – Buildings $1.03 million - Vehicles $345 thousand – Bridges $556 thousand – Fire Apparatus $148 thousand – IT Infrastructure Work-in-Progress (WIP) increased by a net $10.3 million in 2024. Key changes include: $8.2 million – Distribution System (Water) $1.5 million – Land Improvements $470 thousand - Buildings No tangible capital assets were contributed to the County during the 2024 calendar year. 27 2024 Annual Financial Report Net Book Value of Tangible Capital Assets-to- Cost of Tangible Capital Assets REPORT FROM THE CONTROLLER The ratio of the net book value to the total cost of the County’s tangible capital assets indicates how much of their estimated useful life remains available to support the delivery of programs and services. As of December 31, 2024, approximately 65% of the useful life of the County’s tangible capital assets remains, indicating a strong capacity to continue delivering services into the future. Debbie Lea 28 2024 Annual Financial Report Government Transfers-to-Total Revenue Respectfully Submitted, CPA, CGA Controller April 10, 2025 REPORT FROM THE CONTROLLER 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. 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 outside the control of the County. The inset chart highlights that in certain years, a substantial portion of total revenues comes from government transfers. It is important to note that most of these transfers have been directed toward funding major capital projects. The County’s ability to carry out such projects relies heavily on grant funding from other levels of government. 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. 29 2024 Annual Financial Report Agricultural Service Board The Agricultural Services Board (ASB) and subsequently the Agricultural Services Department is guided by four 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 The ASB manages vegetation across municipal rights-of-way, County-owned land, hamlet open spaces, and in collaboration with our partner municipalities. Controlling regulated weed species under the Weed Control Act remains a top priority and an ongoing challenge. To support this work, four Seasonal Vegetation Management Technicians assist ratepayers, monitor infestations, and help identify potential risks. The ASB also keeps a close watch on transportation corridors and waterways—critical pathways for the spread of invasive species. 2024 Programming CP line (66 miles, cost recovery) - GPS/inspect/control Road network - 1737 km sprayed – 1389 km of local roads and 347 km 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) AGRICULTURAL SERVICES REPORT 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. If you are facing persistent weeds or need help identifying potential threats, please contact the ASB team for support. 30 2024 Annual Financial Report Pest Control While the specific pest species may change over time, the ASB’s commitment to monitoring and reporting remains consistent. This season, the ASB surveyed: 199 canola fields for Clubroot 100 sites for grasshopper populations 825 sites for the Coyote Relative Abundance Index (RAI) 3 potato fields for Bacterial Ring Rot 12 wheat fields for Fusarium graminearum The ASB also offers programs and sells pest control products to help manage pest impacts in the County. They include: Trap rentals: 7 skunk/raccoon trap renters (117 days), 1 trap sold; 1 magpie trap renter (20 days), 1 trap sold Grain bugs & ground squirrels: 34 Phostoxin flasks sold to 5 landowners Monitoring: 3 hawk nesting poles checked for activity Prevention: 3 potato cellars disinfected for storage pests Soil Conservation AGRICULTURAL SERVICES REPORT Environmental Programming Through a partnership with the Alberta Government, the ASB delivers environmental programming that promotes knowledge sharing, collaboration, and support for initiatives like Environmental Farm Plans and CAP grants. In 2024, the following opportunities were offered and well utilized: 6 Environmental Farm Plans completed; 3 more in progress Nutrient Management Seminar Series: 500 participants Grasslands Know Your Food Ag Day: 1,200 participants Well-prepared producers—and a little help from Mother Nature—kept soil erosion concerns low this season. Your ASB is proud to support and collaborate with: Farm Safety Centre Alberta Invasive Species Council Ag for Life Brooks Fish and Game (Aqueduct Site): Replaced dead trees, assisted with irrigation and site maintenance EID Tree Planting: Helped plant and mulch 6 sites, and maintain 10 sites 31 2024 Annual Financial Report Mowing The ASB runs two mowing programs: roadside rights-of-way and County-owned properties. These support weed control, improve drainage and safety, and enhance aesthetics. In 2024, 11,405 km of roadside were mowed, and over 2,100 hours were spent maintaining vegetation in hamlets, subdivisions, and airports. AGRICULTURAL SERVICES REPORT The ASB offers a range of equipment rentals, priced near cost recovery. In 2024, usage include: Loading chute & panels: 6 renters Calf table: 7 renters Livestock scale: 5 renters Boomless sprayers (2): 5 renters Insecticide sprayer: 1 renter Weed wipe applicator: 3 renters 3-point hitch sprayer: 2 renters Double disc drill: 11 renters, 1,733 acres No-till drills (2): 48 renters, 2,845 acres Brillion seeders (2): 5 renters, 113.2 acres Tandem axle BBQ: 29 users Rental Equipment 32 2024 Annual Financial Report Emerson Bridge Campground Emerson Bridge Campground, nestled where Highway 36 meets the Red Deer River, offers spacious sites, towering cottonwoods, and a peaceful natural setting. Operated by the ASB, the campground includes 12 full- service sites, 51 power sites, 21 non-power sites, and 7 overflow spots. AGRICULTURAL SERVICES REPORT The 2024 season brought great weather, and many campers took advantage of long-term stays. Overall occupancy was 35%, with power sites at 44% and non-power at nearly 10%. Revenue totaled $125,341— slightly down from $127,509 in 2023. 33 2024 Annual Financial Report Other Programming 2024 Rural Beautification 1 Place Winner - Mar tin & Linda Gubbinsst The ASB continues to promote and protect agriculture through a variety of programs, including the Calgary Stampede Farm Family Award, Rural Beautification Program, seed plant inspections and licensing, roadside seeding, and pest and agronomic support. We proudly collaborate with partners such as the Alberta Conservation Association, Newell Regional Solid Waste, Partners in Habitat Development, CP Rail, Volker Stevin, Alberta Infrastructure, Grasslands Public Schools, the local oil and gas industry, and neighboring municipalities on projects of mutual benefit. If you have questions or want more information, contact the ASB office at 403-362-3266, visit www.countyofnewell.ab.ca, and follow the County on social media for updates. ASB matters are addressed at regular Council meetings. AGRICULTURAL SERVICES REPORT 2024 Rural Beautification 2nd Place Winner -Peter & Jutta Sprunger 2024 Rural Beautification 3rd Place Winner - Rob & Lisa Rommens 34 2024 Annual Financial Report Municipal Enforcement Services 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 for the Department match that of the Selective Traffic Enforcement Program (STEP) of the Province, which are identified on the Alberta Traffic Safety Calendar. Municipal Services is made up of several key departments, including Fleet Services, Municipal Enforcement, Public Works & Engineering – Transportation (Roads), Airport, Water, Wastewater (Sewer), Storm Water, Solid Waste Services, and Planning & Development. Together, these departments play a vital role in supporting sustainable growth and maintaining a high quality of life. Through responsible management, innovation, and collaboration, they work to deliver reliable, high-quality services at reasonable costs. The following are key highlights and accomplishments from Departments in 2024. The Department issued 232 tickets, and 155 warnings related to Provincial offences within the County and partner jurisdictions. The Top Five Provincial offenses, representing 58% of all offences in 2024, include violations of: Exceeding the Maximum Speed Limit (152), Operating Unregistered Motor Vehicle/Trailer (27), Fail to Provide Peace Officer with Financial (Insurance) Responsibility Card (20), Operate/Park Unregistered Motor vehicle/trailer (16), and Failure to Produce Registration (15). Michelle Preston MUNICIPAL SERVICES REPORT The Department patrolled partner jurisdictions for 824 hours, which was up from 704 hours in 2023. In addition to this, the Department patrolled County jurisdictions, including rural areas, multi-lot subdivisions, and Hamlets. 35 2024 Annual Financial Report Public Works & Engineering Services The Public Works and Engineering Departments work collaboratively to manage 1,457 km of gravel roads and 233 km of paved surfaces through established preventive maintenance and capital improvement programs. The Departments are committed to maintaining high-quality gravel roads, supported by a team of eight grader operators—each responsible for approximately 185 km of roadway. It takes about 20 working days (or one month) to complete one full maintenance cycle per grading area ("beat"). During the 2024 spring, summer, and fall maintenance seasons, operators completed 9,936 km of gravel surface maintenance, an increase from 9,171 km in 2023. A total of 23 tickets and 111 warnings were issued for bylaw offences within the County and its partner jurisdictions in 2024. The top five bylaw violations, accounting for 63% of all offences, were: Community Standards (32), Dog at Large (15), Sidewalk Snow and Ice Removal (14), Boating Safety & Aquatic Invasive Species (12), and Parking (12). In addition to routine maintenance, the Departments re-surfaced 359.0 km of gravel roads in 2024— representing 24.7% of the County’s total gravel road network—compared to 304.4 km (20.8%) in 2023. This year’s resurfacing program used 40,386 cubic meters of crushed aggregate at a total cost of $642,318, averaging $1,789.19 per kilometre. By comparison, the 2023 program used 36,333 cubic meters at a cost of $525,220, or $1,725 per kilometre. MUNICIPAL SERVICES REPORT 36 2024 Annual Financial Report Dust Abatement services were applied to 125,818 linear meters (125.8 km) of gravel surfaced roads, compared to 119,300 linear meters (119.30 km) in 2023. The program consisted of 367 applications from Residential (332) and Non-Residential (35), compared to 348 applications from Residential (315) and Non- Residential (33) in 2023. Including County Aggregate Haul Roads and intersection treatments, the 2024 program consumed 2,710,211 litres of dust abatement product over 13 working days, with two active crews, at a total cost of $481,165.66, averaging $3.82/Lm. In comparison, the 2023 program consumed 2,263,282 litres, taking 14 working days to complete, at a total cost of $470,698.86, averaging $3.95/Lm. MUNICIPAL SERVICES REPORT 37 2024 Annual Financial Report Working with professional engineering services, the Rural Road Study was completed, putting in place the next decade of planned capital road improvements. In addition to its extensive gravel road network, the County maintains a paved road system that is free of road bans, allowing producers to move commodities from field to market year-round without restrictions. To protect and extend the life of this valuable infrastructure, the County invests in timely upgrades and maintenance. In 2024, planning and design began for improvements to Range Road 150, from Highway 1 south to Highway 542 (Cassils Road). This project is being developed to meet the standards set by Council for the designated Truck Route around the west and south sides of Brooks. Once complete, it will provide a more direct connection to industrial subdivisions and offer a safer, more efficient route for industrial traffic, including hazardous materials, overweight, and over-dimensional loads, bypassing the City of Brooks. Now in its thirteenth year, the County’s partnership with the Eastern Irrigation District (EID) continues to deliver annual drainage improvements through a jointly funded $2 million budget ($1 million from each partner), as approved by the EID Board and County Council. In 2024, Phase II of the planned works in the Rosemary area moved forward, completing approximately 0.80 km of ditch improvements. Phase III, which includes 3.20 km of additional improvements, has been deferred to 2025. Previous progress in Rosemary includes 12.8 km of completed drainage improvements in Phase I (2022) and 5.6 km in 2021. Other completed project areas include Cassils (15.2 km), Rolling Hills (36.8 km), Scandia (33.0 km), Rainier (65.0 km), Millicent (28.8 km), and more recently, Bow City (6.0 km). Roadside drainage improvements and/or shoulder pulls were completed on the following: Twp Rd192 from HWY36 to Rge Rd154, drainage improvements. Rge Rd155 from Twp Rd192 to HWY1, drainage improvements. The Kinbrook Connection Pathway Partnership—a 12.4 km trail linking Kinbrook Island Provincial Park to the City of Brooks—remains under construction, with completion expected by June 30, 2025. Asphalt paving was finished in 2024, with the installation of amenities such as benches, sunshades, and educational signage planned for 2025. A Grand Opening event will be scheduled to coincide with the project’s completion. The Lake Newell Resort Pathway tender closed in late 2024, with the award decision deferred to 2025. Construction will begin this year, creating a direct connection to the Kinbrook Connection Pathway and offering residents and visitors expanded recreational opportunities. MUNICIPAL SERVICES REPORT 38 2024 Annual Financial Report As of December 31, 2024, the County Rural Water System includes 1,321 km of water lines serving residences and businesses—an increase from 1,189 km the previous year. There are 1,427 active water users out of 1,820 registered users, maintaining an active rate of 78%. Both the number of active and registered users have increased compared to 2023, which saw 1,338 active users out of 1,709 registered. These increases reflect the continued construction of CNWP Phase II, which is expanding service to newly registered users. CNWP Phase II Contract 2 (Tilley & Rolling Hills) construction was completed in 2024, servicing an additional 132 registered users. Phase II Contract 3 (Bassano, Gem & Rosemary) remains under construction and will service an additional 102 registered users. Phase II Contract 4 (Patricia, Scandia, Rainier & Bow City) is under construction and will service an additional 91 registered users. All outstanding contracts will be completed by Summer 2025. Water Services Closing Remarks Managing the essential assets and services that residents rely on every day is a top priority in preserving the quality of life know by our residents. Our team of dedicated public servants remains committed to delivering cost-effective services while ensuring public safety is never compromised. Respectfully Submitted by Mark Harbicht, Director of Municipal Services Leslie Smith MUNICIPAL SERVICES REPORT 39 2024 Annual Financial Report In response to developer feedback and to improve efficiency in the permitting process, Council approved a series of text amendments to the Land Use Bylaw. These changes are designed to reduce unnecessary red tape while promoting orderly and responsible development. Key updates include lowering the maximum floor space for Live/Work Units, permitting sea cans in residential districts, revising policies for Secondary Suites, and updating allowable uses in several land use districts. On June 6, 2024, the Development Officer hosted an open house at the County office, welcoming residents to learn more about the wide range of services the County provides. The event offered an opportunity for attendees to ask questions, connect with staff, and even pay their taxes in person. Representatives from Planning and Development, Finance, Assessment, Fire, Enforcement, and Municipal Services were on hand, along with several Councillors. The event was well received, and planning is already underway to bring it back in 2025. 2024 WAS A YEAR OF GROWTH AND EDUCATION IN THE PLANNING & DEVELOPMENT DEPARTMENT. expanded its programming to include agriculture, a private school opened in Patricia, and construction began on a new school at the Bow City Hutterite Colony. In the industrial area north of Brooks, Golden Bins opened a new location, and JBS expanded its cold storage facility by 5,600 m² (60,280 sq. ft.). Additionally, a permit was issued for a new transloading facility on lands adjacent to the Town of Bassano. Tammy Karasek Darla Wiebe Ashley Ferguson Laurie Baron Shelley Barkley PLANNING & DEVELOPMENT REPORT Notable developments in 2024 included a proposed farm resort concept north of Millicent and the construction of five 214 m² (2,300 sq. ft.) greenhouses near Bassano. Rolling Hills School 40 2024 Annual Financial Report Development Permits 2024 Development Permits Issued Discretionar yPermitted DEVELOPMENT PLANNING & DEVELOPMENT REPORT In 2024, an industrial logistics operation and the construction of a new shop were approved in the Martin Subdivision. A telecommunications installation was completed in the Jackson Light Industrial Subdivision, further enhancing local infrastructure. Additionally, CDN Controls received a permit to develop an atmospheric testing station designed to support companies in testing instruments used for detecting methane leaks. 41 2024 Annual Financial Report Construction Permit Breakdown CONSTRUCTION PERMITS New building permit regulations came into effect in 2024. Notably, shipping containers no longer require a permit. Changes have also been made to requirements for agricultural buildings. Farm buildings that include areas typically considered commercial—such as offices, meeting rooms, or lunchrooms—can now be classified as farm buildings, provided these spaces are used exclusively for the farm operation. Previously, permits were required for the “non-farm” portions of such buildings, but that is no longer the case. However, this could become complex if the building’s use shifts from agricultural to commercial. Without the appropriate safety codes permits in place, future insurance claims and liability may be affected. It’s also important to note that agricultural buildings still require permits for gas, electrical, and plumbing work. Whenever a landowner or developer undertakes a building, electrical, gas, private septic system, or plumbing project, a construction permit is likely required. We strongly encourage anyone planning to build, renovate, or add to an existing structure to contact the County first to confirm whether a permit is needed. Construction permit numbers increase every year, mostly because of an increase in electrical permits. This is partially due to an increasing number of irrigation system installations. Construction permit values are also higher this year compared to the last 2 years because of a large solar installation project in Tilley. Eric Harbinson Building Electrical Gas Plumbing PSDS PLANNING & DEVELOPMENT REPORT 42 2024 Annual Financial Report Construction Permit # Construction Permit Values PLANNING & DEVELOPMENT REPORT In 2024, the County received five land use amendment applications, all intended to support residential subdivisions. In each case, the proposed subdivision was not the first parcel out of the quarter section. Of the five applications, three proceeded to subdivision applications. LAND USE AMENDMENTS SUBDIVISIONS Alberta continues to lose high-quality farmland each year due to increasing development pressures. The regions surrounding Calgary, Red Deer, and Edmonton—as well as lands along the Highway 2 corridor— experience the most intense pressure. Between 2001 and 2012, these areas became significantly more fragmented, while the broader agricultural zone, including the County of Newell, saw a decrease in fragmentation over the same period. The rate of farmland conversion has since slowed, due in part to the influence of municipal land use policies. (Alberta Land Institute, 2025) 43 2024 Annual Financial Report PLANNING & DEVELOPMENT REPORT ROAD CLOSURES Respectfully Submitted by Maria Jackson, Planning & Development Supervisor Subdivision applications circulated in 2024 included a County-initiated subdivision on EID land to support pathway development and formalize ownership of the stormwater pond at Lake Newell Resort. In addition, there were eight applications for new residential lots, one subdivision involving agricultural land split by the TransCanada Highway, and two proposed boundary line adjustments. In Alberta, township roads run north–south and are spaced one mile apart, while range roads run east–west and are located every two miles. The County is working collaboratively with the Eastern Irrigation District (EID) to ensure road allowances are formally closed before new irrigation systems are installed. This process helps reduce County liability and ensures exclusive use of the land for leaseholders. In 2024, the County overhauled the Road Closure Policy, consolidating multiple documents into a single, streamlined policy to improve consistency and reduce duplication. A total of ten road closure applications were submitted, all related to irrigation encroachments. Darla Wiebe 44 2024 Annual Financial Report SECTION TWO CONSOLIDATED FINANCIAL STATEMENTS 45 2024 Annual Financial Report 46 2024 Annual Financial Report 47 2024 Annual Financial Report 48 2024 Annual Financial Report 49 2024 Annual Financial Report 50 2024 Annual Financial Report 51 2024 Annual Financial Report 52 2024 Annual Financial Report 53 2024 Annual Financial Report 54 2024 Annual Financial Report 55 2024 Annual Financial Report 56 2024 Annual Financial Report 57 2024 Annual Financial Report 58 2024 Annual Financial Report 59 2024 Annual Financial Report 60 2024 Annual Financial Report 61 2024 Annual Financial Report 62 2024 Annual Financial Report 63 2024 Annual Financial Report 64 2024 Annual Financial Report 65 2024 Annual Financial Report 66 2024 Annual Financial Report 67 2024 Annual Financial Report 68 2024 Annual Financial Report 69 2024 Annual Financial Report 70 2024 Annual Financial Report 71 2024 Annual Financial Report FINANCIAL & STATISTICAL SECTION THREE 72 2024 Annual Financial Report FINANCIAL & STATISTICAL DEMOGRAPHICS & OTHER STATISTICS 73 2024 Annual Financial Report Expenses by Object FINANCIAL & STATISTICAL 74 Significant items driving variances in total expenses trends across the period include: Salaries, wages and benefits: Increased in 2022, 2023 and in 2024 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 ($517 thousand in 2020 to $826 thousand in 2024). Increase in fuel costs ($710 thousand in 2023 and $862 thousand in 2024) Increase in machinery & equipment repairs ($552 thousand in 2023 and $667 thousand in 2024) Transfers to organizations: Transfers to other municipalities in the County under the Regional Enhancement & Cooperation Agreements & new ICF agreements that were finalized in 2020. 2020 ($816 thousand), 2021 ($1.91 million), 2022 ($2.02 million), 2023 ($2.65 million), 2024 ($2.59 million). Policing costs transferred to Province in 2020 ($215 thousand), 2021 ($390 thousand), 2022 ($531 thousand), 2023 ($695 thousand), 2024 ($788 thousand). Other expenditures: Adjustment to the allowance for doubtful property taxes receivable in 2020 ($537 thousand); 2021 ($212 thousand); 2022 ($92 thousand), 2023 ($253 thousand), 2024 ($75 thousand). Discounts on taxes in 2020 ($1.8 million); 2021 ($687 thousand); 2022 ($608 thousand), 2023 ($719 thousand), 2024 ($635 thousand). Amortization: Total cost of tangible capital assets (net of work-in-progress assets) has increased from $281 million in 2020 to $322 million in 2024 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. 2024 Annual Financial Report FINANCIAL & STATISTICAL 75 2024 Annual Financial Report Expenses by Function FINANCIAL & STATISTICAL 76 2024 Annual Financial Report Revenues by Source Property taxes remain the County’s most significant source of revenue, accounting for between 73.8% and 80.3% of total operating revenues during the reporting period. Several key factors have contributed to variances in total revenue trends over this time, including: 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, include well drilling tax, which the Province cancelled in 2021 Other revenue in 2023 & 2024 includes revenue received from the County’s response to wildfires in the Province. FINANCIAL & STATISTICAL 77 2024 Annual Financial Report FINANCIAL & STATISTICAL 78 Capital Expenditures by Group 2024 Annual Financial Report FINANCIAL & STATISTICAL Capital Expenditures by Function 79 https://www.facebook.com/CountyofNewell https://twitter.com/CountyofNewell https://www.instagram.com/countyofnewell/ @CountyofnewellAbCa administration@newellmail.ca (403) 362-3266 and stay connected 2024 Annual Financial Report 80 CONNECT WITH US