HomeMy WebLinkAbout2024-12-31 2024 Year End Audited Financial StatementsConsolidated Financial Statements of
COUNTY OF NEWELL
Year ended December 31, 2024
INDEPENDENT AUDITORS' REPORT
To: The Mayor and Members of Council of
the County of Newell
Opinion
We have audited the consolidated financial statements of the County of Newell which comprise the consolidated
statement of financial position as at December 31, 2024, and the consolidated statements of operations, change in
net financial assets and cash flow for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
financial position of the County of Newell as at December 31, 2024, and its results of operations and its cash flows
for the year then ended in accordance with Canadian public sector accounting standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the County in accordance with the ethical requirements
that are relevant to our audit of the consolidated financial statements in Canada, and we have fulf illed our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with Canadian public sector accounting standards, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the County’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the County or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the County’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Canadian generally accepted auditing standards will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards,
we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
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INDEPENDENT AUDITORS' REPORT, continued
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the County’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the County’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the company to cease to continue
as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
Lethbridge, Alberta
April 10, 2025 Chartered Professional Accountants
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MANAGEMENT REPORT
The consolidated financial statements are the responsibility of the management of the County of Newell.
These consolidated financial statements have been prepared from information provided by management.
Financial statements are not precise since they include certain amounts based on estimates and judgments.
Management has determined such amounts on a reasonable basis in order to ensure that the consolidated
financial statements are presented fairly, in all material respects.
The County maintains systems of internal accounting and administrative controls that are designed to provide
reasonable assurance that the financial information is relevant, reliable and accurate and that the County's assets
are properly accounted for and adequately safeguarded.
The elected Council of the County is responsible for ensuring that management fulfils its responsibilities for
financial statements. Council carries out its responsibility principally through the Finance and Administration and
General Services committees.
The Council meets annually with management and the external auditors to discuss internal controls over the
financial reporting process, auditing matters and financial reporting issues, and to satisfy itself that each party is
properly discharging its responsibilities.Council also considers the engagement or re-appointment of the external
auditors.Council reviews the monthly financial reports.
The consolidated financial statements have been audited by Avail LLP Chartered Professional Accountants, the
external auditors, in accordance with Canadian generally accepted auditing standards on behalf of the Council,
residents and ratepayers of the County. Avail LLP has full and free access to the Council.
Chief Administrative Officer Controller
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COUNTY OF NEWELL
Consolidated Statement of Financial Position
December 31, 2024, with comparative information for 2023
2024 2023
Financial Assets:
Cash and cash equivalents (note 2) $ 23,389,125 $ 16,872,940
Taxes and grants in place of taxes receivable (note 3) 865,430 751,545
Trade and other receivables (note 4) 12,238,852 8,886,731
Land held for resale 6,748 8,044
Investments (note 5) 124,945,943 119,606,906
Other financial assets 313 10,957
Total Financial Assets 161,446,411 146,137,124
Financial Liabilities:
Accounts payable and accrued liabilities 3,924,636 3,858,561
Employee benefit obligations (note 7) 1,318,983 1,331,745
Unearned revenue (note 8) 2,004,928 789,629
Long-term debt - capital (note 9) 2,875,979 2,982,376
Asset retirement obligations (note 10) 1,945,581 1,820,624
Deposit liabilities (note 2) 314,794 301,248
Total Financial Liabilities 12,384,901 11,084,182
Net Financial Assets 149,061,510 135,052,942
Non-Financial Assets:
Prepaid expenses 336,502 219,325
Tangible capital assets (note 6) 209,700,721 203,127,178
Inventory for consumption 2,662,137 2,988,381
Total Non-Financial Assets 212,699,361 206,334,886
Contingent liabilities (note 18)
Accumulated surplus (note 11) $ 361,760,871 $ 341,387,826
Accumulated surplus is comprised of:
Accumulated operating surplus $ 361,760,871 $ 341,387,826
Accumulated remeasurement gains (losses) - -
$ 361,760,871 $ 341,387,826
The accompanying notes are an integral part of these consolidated financial statements.
Approved on behalf of Council:
Reeve ______________________________ Councillor_________________________________________________
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COUNTY OF NEWELL
Consolidated Statement of Financial Activities
Year ended December 31, 2024, with comparative information for 2023
Budget 2024 2023
Revenues:
Net municipal property taxes (note 12) $ 32,961,420 $ 32,926,944 $ 32,159,400
Special levies 881,413 131,193 126,586
User fees and sale of goods 2,722,428 2,996,455 2,810,917
Government transfers (note 13) 638,667 821,479 809,028
Penalties and cost of taxes 186,000 173,821 146,505
Investment income 2,391,500 5,677,583 2,876,561
Licenses and permits 196,500 352,279 215,661
Other revenue 190,378 1,229,677 1,517,344
Gain (loss) on disposal of tangible
capital assets - 323,132 741,493
Total Revenues 40,168,306 44,632,563 41,403,495
Expenses (note 14):
Legislative 635,260 620,218 594,626
Administration 4,954,898 4,711,624 4,475,682
Corporate safety services 537,028 501,549 505,176
Police 859,123 808,277 713,498
Fire and by-law enforcement 2,512,210 2,281,998 2,229,376
Disaster and emergency services 379,819 379,794 339,191
Roads, streets, walks and lighting 14,482,628 13,512,569 12,486,676
Airport 52,249 35,223 30,327
Water and wastewater 3,221,486 3,230,008 3,033,264
Waste management 407,137 488,379 386,168
Family and community support 72,175 69,391 67,069
Municipal planning 584,568 584,550 575,986
Community and agricultural services 2,506,682 2,175,436 1,974,869
Subdivision land and development 187,709 164,947 234,999
Recreation and parks 2,732,700 2,160,678 2,418,313
Culture and library 181,917 181,917 181,579
Other 885,761 722,934 990,523
Total Expenses 35,193,350 32,629,492 31,237,322
Annual surplus
before the undernoted 4,974,956 12,003,071 10,166,173
Other:
Insurance proceeds - 9,857 36,802
Government transfers (note 13) 11,875,000 8,360,117 7,599,034
Annual surplus 16,849,856 20,373,045 17,802,009
Accumulated surplus, beginning of year 341,387,826 341,387,826 323,585,815
Accumulated surplus, end of year $ 358,237,682 $ 361,760,871 $ 341,387,826
The accompanying notes are an integral part of these consolidated financial statements.
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COUNTY OF NEWELL
Consolidated Statement of Remeasurement Gains and Losses
December 31, 2024, with comparative information for 2023
2024 2023
Accumulated remeasurement gains (losses), beginning of year $ - $ -
Unrealized gains (losses) attributable to:
Equity investments - -
Foreign exchange - -
Derivatives - -
Amounts reclassified to statement of financial activities - -
Equity investments realized gains - -
Net remeasurement gains (losses) for the year - -
Accumulated remeasurement gains (losses), end of year $ - $ -
The accompanying notes are an integral part of these consolidated financial statements.
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COUNTY OF NEWELL
Consolidated Statement of Change in Net Financial Assets
December 31, 2024, with comparative information for 2023
Budget 2024 2023
Annual surplus $ 16,849,956 $ 20,373,045 $ 17,802,009
Acquisition of tangible capital assets (25,457,996) (15,259,533) (17,660,746)
Proceeds on disposal of tangible capital assets 527,432 675,687 993,464
Amortization of tangible capital assets 8,268,547 8,300,739 7,789,851
(Gain) loss on disposal of tangible capital assets - (290,437) (741,493)
184,939 13,799,501 8,183,087
Use (acquisition) of inventories for consumption - 326,244 (711,717)
Use (acquisition) of prepaid expenses - (117,177) (9,369)
Change in net financial assets excluding
remeasurement gains (losses) (3,522,230) 14,008,568 7,462,001
Net remeasurement gains (losses) - - -
Net financial assets, beginning of year 135,052,942 135,052,942 127,590,941
Net financial assets, end of year $131,520,712 $149,061,510 $135,052,942
The accompanying notes are an integral part of these consolidated financial statements.
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COUNTY OF NEWELL
Consolidated Statement of Cash Flows
Year ended December 31, 2024, with comparative information for 2023
2024 2023
Cash provided by (used in):
Operations:
Annual surplus $ 20,373,045 $ 17,802,009
Items not involving cash:
Amortization 8,300,739 7,789,851
Loss (gain) on disposal of tangible capital assets (290,437) (741,493)
Change in non-cash financial assets and liabilities:
Taxes and grants in place of taxes receivable (113,885) 110,599
Trade and other receivables (3,352,120) (989,103)
Land held for resale 1,296 -
Prepaid expenses (117,177) (9,369)
Inventory for consumption 326,244 (711,717)
Accounts payable and accrued liabilities 66,075 972,245
Employee benefit obligations (12,762) 1,487
Unearned revenue 1,215,299 (4,557,919)
Accretion of asset retirement obligation 124,957 62,417
Other financial liabilities 10,644 8,084
26,531,918 19,737,091
Capital activities:
Proceeds on disposal of tangible capital assets 675,687 993,464
Purchase of tangible capital assets (15,259,533) (17,660,746)
(14,583,846) (16,667,282)
Investing activities:
Decrease (increase) in investments (5,339,036) (6,152,064)
(5,339,036) (6,152,064)
Financing activities:
Repayment of long-term debt:
- capital (106,397) (665,997)
Proceeds from debt acquired - -
Increase (decrease) in deposit liabilities 13,546 20,493
(92,851) (645,504)
Increase (decrease) in cash and cash equivalents 6,516,185 (3,727,759)
Cash and cash equivalents, beginning of year 16,872,940 20,600,700
Cash and cash equivalents, end of year (note 2) $ 23,389,125 $ 16,872,940
Cash and cash equivalents is comprised of:
Cash $ 23,389,125 $ 16,872,940
$ 23,389,125 $ 16,872,940
The accompanying notes are an integral part of these consolidated financial statements.
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
1. Significant accounting policies:
The consolidated financial statements of the County of Newell (the “County”) are the
representations of management prepared in accordance with Canadian Public Sector accounting
standards. Significant aspects of the accounting policies adopted by the County are as follows:
(a) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and short-term deposits which are highly
liquid with original maturities of less than three months from the date of acquisition.
(b) Reporting entity:
The consolidated financial statements reflect the assets, liabilities, revenues and expenses,
changes in net financial assets and cash flows of the County, which comprises of all the
organizations that are owned or controlled by the County and are, therefore accountable to the
Council for the administration of their financial affairs and resources. All significant inter-
department transactions and balances are eliminated on consolidation.
Taxes levied also include requisitions for educational, health care, social and other external
organizations that are not part of the County. The statements exclude trust assets that are
administered for the benefit of external parties.
(c) Basis of accounting:
The financial statements are prepared using the accrual basis of accounting. The accrual basis
of accounting records revenue as it is earned and measurable. Expenses are recognized as
they are incurred and measurable based upon receipt of goods or services and/or the legal
obligation to pay. Funds from external parties and earnings thereon restricted by agreement
or legislation are accounted for as deferred revenue until used for the purpose specified.
(d) Investments:
Investments in derivatives and equity instruments quoted in an active market are carried at fair
value with transactions costs expensed upon initial recognition. Unrealized changes in fair
value are recognized in the statement of remeasurement gains and losses. When the
investment is disposed of the accumulated gains or losses are reclassified to the statement of
operations. Investments in interest bearing securities are recorded at amortized cost.
Investment premiums and discounts are amortized on the net present value basis over the term
of the respective investments. When there has been a loss in value that is other than a
temporary decline, the respective investment is written down to recognize the loss.
(e) Requisition over-levy and under-levy:
Over-levies and under-levies arise from the difference between the actual property tax levy
made to cover each requisition and the actual amount requisitioned. If the actual levy exceeds
the requisition, the over-levy is accrued as a liability and property tax revenue is reduced.
Where the actual levy is less than the requisition amount, the under-levy is accrued as a
receivable and as property tax revenue. Requisition tax rates in the subsequent year are
adjusted for any over-levies for the prior year.
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
1. Significant accounting policies (continued):
(f) Inventories:
Land held for resale is recorded at the lower of cost and net realizable value. Cost includes
costs for land acquisition and improvements required to prepare the land for servicing such as
clearing, stripping, and leveling charges. Related development costs incurred to provide
infrastructure such as water and wastewater services, roads, sidewalks and street lighting are
recorded as capital assets under their respective function.
(g) Government transfers:
Government transfers are recognized in the financial statements as revenues in the period that
the events giving rise to the transfer occurred, providing the transfers are authorized, all
eligibility criteria have been met by the County, and reasonable estimates of the amounts can
be made.
(h) Non-financial assets:
Non-financial assets are not available to discharge existing liabilities and are held for use in the
provision of services. They have useful lives extending beyond the current year and are not
intended for sale in the normal course of operations.
(i) Tangible capital assets:
Tangible capital assets are recorded at cost which includes all amounts that are directly
attributable to acquisition, construction, development or betterment of the asset. The cost,
less residual value, of the tangible capital assets is amortized on a straight-line basis over
the estimated useful life as follows:
Years
Land Improvements 10-45
Buildings 25-70
Engineered structures 20-100
Machinery and equipment 5-25
Vehicles 5-20
Assets under construction are not amortized until the asset is available for productive use.
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
1. Significant accounting policies (continued):
(i) Non-financial assets (continued):
(ii) Contributions of tangible capital assets:
Tangible capital assets received as contributions are recorded at fair value at the date of
receipt and recorded as revenue.
(iii) Inventories
Inventories of materials and supplies held for consumption are recorded at the lower of
cost and replacement cost with cost determined by the average cost method.
(iv) Cultural and historical tangible capital assets:
Works of art for display are not recorded as tangible capital assets but are disclosed.
(i) Tax Revenue:
Tax revenue results from non-exchange transactions that are paid to governments in
accordance with the laws and regulations established to provide revenue to the government
for public services. The revenue is recognized when the tax has been authorized and the
taxable event has occurred.
(j) Pension expenses:
The County participates in a multi-employer defined benefit pension plan, wherein contributions
for current and past service pension benefits are recorded as expenses in the year in which
they become due.
(k) Use of estimates:
The preparation of the financial statements in conformity with Canadian public sector
accounting standards requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Significant areas requiring the use of management estimates relate
to the determination of allowance for doubtful accounts, provision for closure and post-closure
care, employee benefit obligations and the useful life of tangible capital assets.
Contributions of tangible capital assets are recorded at estimated fair value at the date of
receipt.
Actual results could differ from those estimates.
There is measurement uncertainty related to asset retirement obligations as it involves
estimates in determining settlement amount, discount rates and timing of settlement. Changes
to any of these estimates and assumptions may result in change to the obligation.
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
1. Significant accounting policies (continued):
(l) Contaminated sites:
Contaminated sites are a result of contamination being introduced into air, soil, water or
sediment of a chemical, organic or radioactive or live organism that exceeds an environmental
standard. The liability is recorded net of any expected recoveries. A liability for remediation of
a contaminated site is recognized when a site is not in productive use and is management’s
estimate of the cost of post-remediation including operation, maintenance and monitoring. No
contaminated sites have been identified.
(m) Asset retirement obligations:
Asset Retirement Obligations ("ARO") represent the legal obligations associated with the
retirement of a tangible capital asset that result from its acquisition, construction, development,
or normal use. The tangible capital assets include but are not limited to assets in productive
use, assets no longer in productive use, and leased tangible capital assets.
The liability associated with an asset retirement obligation is measured with reference to the
best estimate of the amount required to ultimately remediate the liability at the financial
statement date to the extent that all recognition criteria are met. Asset retirement obligations
are only recognized when there is a legal obligation for the County to incur costs in relation to
a specific tangible capital asset, when the past transaction or event causing the liability has
already occurred, when economic benefits will need to be given up in order to remediate the
liability, and when a reasonable estimate of such amount can be made. The best estimate of
the liability includes all costs directly attributable to the remediation of the asset retirement
obligation, based on the most reliable information that is available as at the applicable reporting
date. Where cash flows are expected over future periods, the liability is recognized using a
present value technique.
When a liability for an asset retirement obligation is initially recognized, a corresponding
adjustment to the related tangible capital asset is also recognized for underlying assets that
have been recorded and reported within the tangible capital asset values presented in the
financial statements. Through the passage of time in subsequent reporting periods, the carrying
value of the liability is adjusted to reflect accretion expenses incurred in the current period. This
expense ensures that the time value of money is considered when recognizing outstanding
liabilities at each reporting date. The capitalized asset retirement cost within tangible capital
assets is also simultaneously depreciated on the same basis as the underlying asset to which
it relates. In circumstances when the underlying asset is fully depreciated, the ARO will be
amortized over the estimated future life until the cash disbursement is made in the future to
settle the obligation.
At remediation, the County derecognizes the liability that was established. In some
circumstances, gains or losses may be incurred upon settlement related to the ongoing
measurement of the liability and corresponding estimates that were made and are recognized
in the statement of operations.
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
2. Cash and cash equivalents:
2024 2023
Cash $ 23,389,125 $ 16,872,940
$ 23,389,125 $ 16,872,940
Included in cash are amounts aggregating $314,794 (2023 - $301,248) not available for current
use.
2024 2023
Tax sale surplus $ 36,413 $ 35,488
Public reserve 265,258 253,307
Bow City Cemetery Perpetual Care Fund 13,123 12,453
$ 314,794 $ 301,248
3. Taxes and grants in place of taxes receivable:
2024 2023
Current $ 699,466 $ 598,492
Arrears 630,554 642,553
1,330,020 1,241,045
Allowance for uncollectible taxes (464,590) (489,500)
$ 865,430 $ 751,545
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
4. Trade and other receivables:
2024 2023
Grants $ 5,413,373 $ 731,953
Local improvement taxes 4,772,217 5,247,909
Other 2,053,262 2,906,869
$ 12,238,852 $ 8,886,731
Local improvement taxes carry annual interest rates ranging from 2.64% - 5.08% and are due
between 2030 – 2047.
5. Investments:
2024 2023
Fixed income securities $121,875,678 $ 116,536,642
Credit Union Common shares 8 8
Newell Regional Services Corporation:
Common shares 20 20
Preferred shares 3,070,236 3,070,236
3,070,264 3,070,264
$124,945,942 $119,606,906
Fixed income securities have effective interest rates of 1.54% to 7.99% with maturity dates from
June 2027 through July 2035. The fixed income securities have an aggregate market value of
$117,386,438 (2023 - $111,109,997).
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
6. Tangible capital assets:
Cost 2023 Additions Disposals 2024
Land $ 5,373,373 $ - $ - $ 5,373,373
Land improvements 2,963,506 68,582 - 3,032,088
Buildings 22,820,880 13,989 (19,906) 22,814,963
Engineered structures 243,342,237 1,391,151 (73,602) 244,659,786
Machinery and equipment 12,902,566 1,988,576 (754,482) 14,136,660
Vehicles 9,064,237 1,502,794 (453,335) 10,113,696
Work in progress, net
of transfers 11,183,952 10,294,440 - 21,478,392
Total $ 307,650,752 $ 15,259,533 $ (1,301,326) $ 321,608,958
Accumulated Amortization
amortization 2023 Disposals expense 2024
Land improvements $ 1,622,278 $ - $ 88,838 $ 1,711,117
Buildings 3,639,560 (12,728) 382,630 4,009,461
Engineered structures 88,713,206 (73,602) 5,948,873 94,588,477
Machinery and equipment 6,340,306 (669,680) 1,134,049 6,804,675
Vehicles 4,208,222 (160,064) 746,349 4,794,506
Total $ 104,523,572 $ (916,074) $ 8,300,739 $111,908,237
Net book value 2024 2023
Land $ 5,373,373 $ 5,373,373
Land improvements 1,320,971 1,341,228
Buildings 18,805,502 19,181,320
Engineered structures 150,071,309 154,629,031
Machinery and equipment 7,331,985 6,562,260
Vehicles 5,319,190 4,856,015
Work in progress 21,478,392 11,183,951
Total $ 209,700,721 $ 203,127,178
Contributed tangible capital assets are recognized at fair value at the date of contribution.
No contributed tangible capital assets received in 2024.
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
7. Employee benefit obligations:
Vacation
The vacation liability is comprised of the vacation that employees are deferring to future years.
Employees have either earned the benefits (and are vested) or are entitled to these benefits within
the next budgetary year.
Sick
The sick liability is comprised of the sick pay that employees are deferring to future years.
Employees have either earned the benefits (and are vested) or are entitled to them within the next
budgetary year.
8. Unearned Revenue:
2024 2023
Government contributions $ 668,996 $34,133
Prepaid taxes 1,114,932 162,657
Other 32,000 82,539
Deposits 189,000 510,300
Total $ 2,004,928 $ 789,629
Government contributions in unearned revenue consist of the following:
Recognized as Change in
Description 2023 Received revenue Receivable 2024
NRED $ - $ 208,077 $ - $ - $ 208,077
CCBF 30,975 450,883 (47,361) 22,708 457,205
MSI - 1,754,334 (1,022,382) (731,952) -
FSTP 3,158 9,976 (9,420) - 3,714
Total $ 34,133 $ 2,423,270 $(1,079,163) $ (709,244) $ 668,996
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
9. Long-term debt – capital:
2024 2023
Tax supported debentures $ 2,875,979 $ 2,982,376
Principal and interest repayments are due as follows:
Principal Interest Total
2025 $ 110,774 $ 127,661 $ 238,435
2026 115,337 123,097 238,434
2027 120,098 118,336 238,434
2028 125,064 113,370 238,434
2029 130,155 108,190 238,435
Thereafter 2,274,551 996,010 3,270,561
$ 2,875,979 $ 1,586,664 $ 4,462,734
Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates ranging
from 2.76% to 5.08% per annum and matures in periods 2034 through 2047. The average annual
interest rate is 4.478% for 2024 (2023 – 4.46%). Debenture debt is issued on the credit and security
of the County of Newell at large.
Interest on long-term debt amounted to $131,337 (2023 - $146,591).
The County’s total interest paid in 2024 was $132,037 (2023 - $147,914).
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COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
10. Asset retirement obligations:
2024 2023
Balance, beginning of year $ 1,820,624 $1,758,207
Liabilities incurred - -
Liabilities settled (41,616) (53,486)
Accretion expense 84,689 88,632
Change in liability 81,884 27,271
Estimated total liability $ 1,945,582 $ 1,820,624
Related to tangible capital assets $ 734,290 $ 654,185
Related to other items 1,211,292 1,166,439
$ 1,945,582 $ 1,820,624
The County owns buildings which contain asbestos, and therefore, the County is legally required
to perform abatement activities upon renovation or demolition of these assets. Abatement activities
include handling and disposing of the asbestos in a prescribed manner when it is disturbed.
Landfill closure and post-closure care requirements have been defined in accordance with The
Environmental Management and Protection Act and include final covering and landscaping of the
landfill, pumping of ground water, methane gas and leachate management, and ongoing
environmental monitoring, site inspection and maintenance.
Gravel Pit closure and post-closure care requirements have been defined in accordance with The
Environmental Management and Protection Act and include final covering and landscaping, and
pumping of ground water.
Leases have asset retirement obligations arising from a clause in the lease agreement, which
stipulates the obligation to return the land to its original state upon the termination of the lease
agreement.
The reported liability is based on estimates and assumptions using the best information available
to management. Future events may result in significant changes to the estimated total expense,
and the estimated liability, and would be recognized prospectively, as a change in estimate, when
applicable.
19
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
11. Accumulated surplus:
Equity in
tangible
Unrestricted capital Restricted Total Total
net assets assets (1)Surplus (2)2024 2023
Beginning
balance $13,999,399 $199,490,618 $127,897,808 $341,387,826 $323,585,816
Annual surplus
(deficit) 20,373,045 - - 20,373,045 17,802,009
Transfers to
restricted surplus (20,742,627) - 20,742,627 - -
Transfers from
restricted surplus 6,978,164 - (6,978,164) - -
Amortization of
tangible capital
assets 8,300,739 (8,300,739) - - -
Net book value
of assets disposed 385,253 (385,253) - - -
Capital assets
internally
funded (15,259,533) 15,259,533 - - -
Debt paid - capital (106,398) 106,398 - - -
Change in asset
retirement obligation 80,105 (80,105)
Total $14,008,147 $206,090,452 $141,662,271 $361,760,871 $341,387,826
(1)Equity in tangible capital assets:
2023 2023
Tangible capital assets (note 6) $ 321,608,958 $ 307,650,751
Accumulated amortization (note 6) (111,908,237) (104,523,572)
Long-term debt – capital (note 9) (2,875,979) (2,982,376)
Asset Retirement Obligation (note 10) (734,290) (654,185)
$ 206,090,452 $ 199,490,618
20
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
11. Accumulated surplus (continued):
(2) Restricted surplus is comprised of funds internally restricted as follows:
2024 2023
Paving $11,677,073 $ 9,753,790
Infrastructure 94,477,015 83,736,031
Future Projects 4,425,353 2,394,984
Vehicles, Machinery & Equipment 12,326,068 12,739,013
Regional Enhancement 509,558 543,533
Stabilization 5,000,000 4,982,487
Facilities 5,768,772 4,683,039
Fire Apparatus 3,019,376 3,376,068
Recreation 4,442,164 5,671,181
Tilley 16,893 17,680
$141,662,271 $ 127,897,808
12. Net municipal property taxes:
Budget 2024 2023
Taxation:
Real property taxes $ 18,198,687 $ 18,209,653 $ 17,659,786
Linear property taxes 26,824,444 26,748,079 25,976,546
Government grants in place of property
taxes 472,764 473,117 455,187
45,495,895 45,430,849 44,091,519
Requisitions:
Alberta School Foundation Fund 11,894,700 11,866,901 11,322,339
Newell Foundation 425,215 425,215 406,078
Designated Industrial Property 214,560 211,789 203,702
12,534,475 12,503,905 11,932,119
Net municipal property taxes $ 32,961,420 $ 32,926,944 $ 32,159,400
21
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
13. Government transfers:
Budget 2024 2023
Transfers for operating:
Provincial government $ 277,858 $ 508,860 $ 429,362
Federal government - - 50,000
Local government 360,809 312,620 329,666
638,667 821,479 809,028
Transfers for capital:
Provincial government 11,875,000 8,237,449 7,464,557
Local government - 122,668 134,477
11,875,000 8,360,117 7,599,034
$ 12,513,667 $ 9,181,596 $ 8,408,062
14. Expenses by object:
Budget 2024 2023
Salaries, wages and benefits $ 9,988,599 $ 9,508,771 $ 8,948,737
Contracted and general services 5,101,165 4,239,061 4,342,083
Materials, goods, supplies and utilities 5,750,303 5,278,472 4,773,752
Transfers to organizations 4,988,286 4,222,817 4,157,899
Bank charges and short-term interest 10,005 8,687 9,618
Interest on long-term debt 132,038 131,337 146,590
Other expenditures 870,761 854,920 980,160
Amortization 8,268,547 8,300,739 7,789,851
Accretion of asset retirement obligation 83,646 84,688 88,632
$ 35,193,350 $ 32,629,492 $ 31,237,322
22
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
15. Salary and benefits disclosure:
Disclosure of salaries and benefits for elected municipal officials, chief administrative officer and
designated officers as required by provincial regulation is as follows:
2024 2023
Benefits &
Salary (1) Allowances (2) Total Total
Council:
Division 1 - Short $ 40,455 $ 8,286 $ 48,741 $ 49,149
Division 2 - Skanderup 37,806 8,508 46,314 44,707
Division 3 - Kopp 35,032 8,316 43,348 41,016
Division 4 - H. Johnson 41,198 8,743 49,942 44,800
Division 5 - Skriver 37,338 8,476 45,813 38,706
Division 6 - Christman 36,674 8,430 45,103 43,648
Division 7 - Unruh 29,163 7,909 37,072 41,156
Division 8 - Philpott 40,007 4,934 44,940 42,306
Division 9 - Doerksen 43,353 8,941 52,293 53,545
Division 10 - N. Johnson 36,972 6,204 43,176 41,116
$ 377,997 $ 78,746 $ 456,742 $ 441,149
Chief Administrative Officer $ 231,695 $ 67,815 $ 299,510 $ 279,231
Designated Officers (3) $ 461,217 $ 92,917 $ 554,134 $ 542,536
1) Salary includes regular base pay, bonuses, overtime, lump sum payments, gross honoraria
and any other direct cash remuneration.
2) Benefits and allowances include the employer’s share of all employee benefits and
contributions or payments made on behalf of employees including pension, health care,
dental coverage, vision coverage, group life insurance, accidental disability and
dismemberment insurance, long and short-term disability plans, professional memberships
and tuition.
Benefits and allowances figures also include the employer’s share of the costs of additional
taxable benefits including special leave with pay, financial planning services, retirement
planning services, concessionary loans, travel allowances, car allowances, and club
memberships, if applicable.
23
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
16. Debt limits:
Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by
Alberta Regulation 255/00 for the County be disclosed as follows:
2024 2023
Total debt limit $ 66,948,845 $ 62,105,243
Total debt (2,875,979) (2,982,376)
Unused debt limit $ 64,072,866 $ 59,122,867
2024 2023
Debt servicing limit $ 11,158,141 $ 10,350,874
Debt servicing (238,435) (238,435)
Unused debt servicing limit $ 10,919,706 $ 10,112,439
The debt limit is calculated at 1.5 times revenue of the County (as defined in Alberta Regulation
255/00) and the debt service limit is calculated at 0.25 times such revenue. Incurring debt beyond
these limitations requires approval by the Minister of Municipal Affairs. These thresholds are
guidelines used by Alberta Municipal Affairs to identify municipalities which could be at financial
risk if further debt is acquired.
17. Local authorities pension plan:
The County participates in a multi-employer defined benefit pension plan. This plan is accounted
for as a defined contribution plan.
Employees of the County participate in the Local Authorities Pension Plan (LAPP), which is one of
the plans covered by the Public Sector Pension Plans Act. The LAPP serves about 304,451 people
and about 444 employers. The LAPP is financed by employer and employee contributions and
investment earnings of the LAPP fund.
Contributions for current service are recorded as expenditures in the year in which they become
due. The County is required to make current service contributions to the Plan of 8.45% of
pensionable earnings up to the year’s maximum pensionable earnings under the Canada Pension
Plan and 11.65% on pensionable earnings above this amount. Employees of the County are
required to make current service contributions of 7.45% of pensionable salary up to the year’s
maximum pensionable salary and 10.65% on pensionable salary above this amount.
Total current service contributions by the County to the LAPP in 2024 were $584,208 (2023 -
$554,549). Total current service contributions by the employees of the County to the LAPP in 2024
were $522,628 (2023 - $497,190).
At December 31, 2023, the LAPP disclosed an actuarial surplus of $15.057 billion.
24
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
18. Contingent liabilities:
The County of Newell is a member of the Alberta Municipal Insurance Exchange (MUNIX). Under
the terms of membership, the County of Newell could become liable for its proportionate share of
any claim losses in excess of the funds held by the exchange. Any liability incurred would be
accounted for as a current transaction in the year the losses are determined.
19. Recent accounting pronouncements:
The following summarizes upcoming changes to Canadian public sector accounting standards. In
2025, the County will continue to assess the impact and prepare for the adoption of these
standards. While the timing of standard adoption may vary, certain standards must be adopted
concurrently.
(a) The Conceptual Framework of Financial Reporting in the Public Sector
The Conceptual Framework is the foundation for public sector financial reporting standard
setting. It replaces the conceptual aspects of Section PS 1000 Financial Statement Concepts
and Section PS 1100 Financial Statement Objectives. The conceptual framework highlights
considerations fundamental for the consistent application of accounting issues in the absence
of the specific standards. The standard is applicable for the fiscal years beginning on or after
April 1, 2026.
(b) PS 1202 Financial Statement Presentation
Section PS 1202 sets out general and specific requirements for the presentation of information
in general purpose financial statements. The financial statement presentation principles are
based on the concepts within the Conceptual Framework. The standard is applicable for the
fiscal years beginning on or after April 1, 2026.
Management is assessing the impact of the adoption of these standards which is not known or
reasonably estimable at this time.
20. Segmented Disclosures:
Segmented disclosures (Schedule 1) are intended to enable users to better understand the
government reporting entity and the major expense and revenue activities of the County.
The segments have been selected based upon functional activities provided by the County. For
each reported segment, revenues and expenses represent both amounts directly attributable to the
segment and amounts that are allocated on a reasonable basis. The functional areas that have
been separately disclosed, along with the services they provide are as follows:
(a) General government is comprised of Council, Legislative, Corporate Administration,
Finance, Information and Computer Services, Planning, Economic Development,
Corporate Safety, Agricultural Services, Fire and Disaster Services, Bylaw Enforcement,
Community Services, Recreation, Parks and Programs and Library.
(b) Public Works and Transportation is comprised of Roads and Engineering Services.
(c) Public Utilities is comprised of Water, Wastewater and Solid Waste.
25
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2024
21. Financial Instruments
The County’s financial instruments consist of cash and cash equivalents investments, accounts
receivable, investments, bank indebtedness, accounts payable and accrued liabilities, deposit
liabilities, and long-term debt. It is management’s opinion that the County is not exposed to
significant interest or currency risks arising from these financial instruments. Tax receivables and
requisition over/under-levy are compulsory in nature, rather than contractual, however, the County
manages risk exposure on these items similar to other receivables and payables.
The County is subject to credit risk with respect to taxes and grants in place of taxes receivables
and trade and other receivables. Credit risk arises from the possibility that taxpayers and entities
to which the County provides services may experience financial difficulty and be unable to fulfill
their obligations. The large number and diversity of taxpayers and customers minimizes the credit
risk. The County is exposed to market price risk from investments in equity instruments whose
value fluctuates with changes in quoted market prices.
22. Budget information:
The budget information presented in these consolidated financial statements is based upon the
2024 budget approved by Council on April 11, 2024.
23. Approval of financial statements:
These financial statements were approved by Council and Management.
COUNTY OF NEWELL Schedule 1
Schedule of Segmented Disclosures
Year ended December 31, 2024, with comparative information for 2023
General
Government
Public Works and
Transportation Public Utilities
Total
2024
General
Government
Public Works
and
Transportation Public Utilities
Total
2023
Revenue
Net taxes for municipal purposes 32,926,944$-$-$ 32,926,944$ 32,159,400$-$-$ 32,159,400$
Special levies - - 131,193 131,193 - - 126,586 126,586
User Fees and sale of goods 444,592 436,844 2,115,019 2,996,455 441,485 400,053 1,969,379 2,810,917
Government transfers - operating 722,913 - 98,566 821,479 656,526 75,000 77,502 809,028
Penalties and costs of taxes 173,821 - - 173,821 146,505 - - 146,505
Investment income 5,677,583 - - 5,677,583 2,876,561 - - 2,876,561
License and permits 352,279 - - 352,279 215,661 - - 215,661
Other 659,200 204,207 366,270 1,229,677 1,253,531 19,952 243,861 1,517,344
Gain (loss) on disposal of capital assets 208,437 114,695 - 323,132 39,515 701,978 - 741,493
41,165,769 755,746 2,711,048 44,632,563 37,789,184 1,196,983 2,417,328 41,403,495
Expenses
Salaries, wages and benefits 6,366,152 3,142,619 - 9,508,771 6,078,884 2,869,853 - 8,948,737
Contracted and general services 1,530,079 1,705,899 1,003,083 4,239,061 1,630,660 1,849,029 862,394 4,342,083
Materials, goods, supplies and utilities 1,560,634 2,322,676 1,395,162 5,278,472 1,600,445 1,844,773 1,328,534 4,773,752
Transfers to organizations 4,081,065 - 141,752 4,222,817 4,118,756 - 39,143 4,157,899
Bank charges and short term interest 8,687 - - 8,687 9,618 - - 9,618
Interest on long-term debt - 97,781 33,556 131,337 - 99,952 46,638 146,590
Other expenditures 854,920 - - 854,920 980,111 - 49 980,160
Amortization 1,404,963 5,767,728 1,128,048 8,300,739 1,355,358 5,310,109 1,124,384 7,789,851
Accretion of asset retirement obligation 51,546 16,357 16,785 84,688 53,921 16,422 18,289 88,632
15,858,046 13,053,060 3,718,386 32,629,492 15,827,753 11,990,138 3,419,431 31,237,322
Annual surplus (deficit)
before the undernoted 25,307,723 (12,297,314) (1,007,338) 12,003,071 21,961,431 (10,793,155) (1,002,103) 10,166,173
Other
Insurance proceeds - 9,857 - 9,857 36,802 - - 36,802
Government transfers - capital 74,603 79,040 8,206,474 8,360,117 - 760,433 6,838,601 7,599,034
Annual surplus (deficit) 25,382,326$ (12,208,417)$ 7,199,136$ 20,373,045$ 21,998,233$ (10,032,722)$ 5,836,498$ 17,802,009$
26
