HomeMy WebLinkAbout2005-12-31 Year End Audited Financial Satements
Consolidated Financial Statements of
COUNTY OF NEWELL NO. 4
Year ended December 31, 2005
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KPMG LLP
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AUDITORS' REPORT
To the Reeve and Members of Council
County of Newell No. 4
We have audited the consolidated statement of financial position of the County of Newell No. 4 as at
December 31, 2005 and the consolidated statements of financial activities and consolidated cash flows
for the year then ended. These financial statements are the responsibility of the Countys
management. Our responsibility is to express an opinion on these financial statements based on our
audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we plan and perform an audit to obtain reasonable assurance whether the
consolidated financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
In our opinion, these consolidated financial statements present fairly, in all material respects, the
financial position of the County as at December 31, 2005 and the results of its financial activities and
its cash flows for the year then ended in accordance with Canadian generally accepted accounting
principles.
The comparative figures for December 31, 2004 were audited by another firm of chartered
accountants.
Chartered Accountants
Lethbridge, Canada
February 15, 2006
COUNTY OF NEWELL NO. 4
Consolidated Statement of Financial Position
December 31, 2005, with comparative figures for 2004
2005 2004
Financial Assets:
Cash and temporary investments (note 2) $ 15,131,617 $ 9,608,238
Taxes and grants in place of taxes receivable (note 3) 559,140 447,065
Trade and other receivables 845,768 1,025,766
Land held for resale 31,901 525
Prepaid expenses 123,205 120,199
Investments (note 4) 959,706 995,458
Notes receivable (note 5) 9,522,609 9,949,427
27,173,946 22,146,678
Physical assets:
Inventory for consumption 816,669 425,155
Capital assets (note 6) 20,456,692 18,869,787
21,273,361 19,294,942
$ 48,447,307 $ 41,441,620
Liabilities:
Accounts payable and accrued liabilities $ 1,013,308 $ 771,315
Employee benefit obligation (note 7) 201,922 177,798
Unearned revenue 51,022 119,851
Long-term debt capital (note 8) 1,125,077 535,589
Long-term debt operating (note 9) 8,174,649 8,598,370
Provision for landfill closure and post-closure costs (note 10) 357,625 434,186
Provision for gravel pit closure and post-closure costs (note 10) 240,890 176,500
Deposit liabilities (note 2) 202,407 343,218
11,366,900 11,156,827
Municipal Position:
Fund balances:
Operating 515,509 513,921
Capital (note 11) (188,233) (697,790)
Reserves (note 12) 17,421,516 12,134,464
17,748,792 11,950,595
Equity in capital assets (note 13) 19,331,615 18,334,198
37,080,407 30,284,793
Contingencies (note 20)
$ 48,447,307 $ 41,441,620
See accompanying notes to consolidated financial statements.
1
COUNTY OF NEWELL NO. 4
Consolidated Statement of Financial Activities
Year ended December 31, 2005, with comparative figures for 2004
Budget 2005 2004
(Unaudited)
Revenues:
Net municipal property taxes (note 14) $15,564,594 $ 15,741,755 $ 10,352,251
Special levies 401,628 401,628 355,766
User fees and sale of goods 1,287,542 930,902 1,402,193
Government transfers (note 15) 910,782 2,599,397 1,256,151
Penalties and cost of taxes 101,000 115,462 154,576
Investment income 725,567 844,529 807,420
Licenses and permits 59,000 88,769 63,534
Proceeds from local improvements 155,555 158,129 161,957
Proceeds from disposal of capital assets 8,500 362,153 1,610,750
Other revenue 32,500 113,626 90,652
19,246,668 21,356,350 16,255,250
Expenditures:
Legislative 428,135 344,738 428,136
Administration 1,262,294 1,136,998 1,079,763
General 1,042,669 753,527 924,860
Fire and by-law enforcement 531,332 547,695 462,463
Ambulance services and first aid 55,312 55,312 221,247
Disaster and emergency services 138,150 26,860 6,039
Roads, streets, walks and lighting 7,130,677 10,994,551 8,671,767
Water and waste water 144,247 458,852 682,488
Waste management 174,888 175,553 182,119
Family and community support 189,282 38,826 184,182
Municipal planning 379,100 221,467 261,957
Community and agricultural services 948,480 910,755 746,445
Subdivision land and development 500 233 --
Recreation and parks 391,520 412,867 368,842
Culture and library 69,408 69,407 66,506
12,885,994 16,147,641 14,286,814
Excess of revenues over expenditures 6,360,674 5,208,709 1,968,436
Capital financing transactions:
Debenture debt issued -- 702,907 --
Repayment of long-term debt (113,420) (113,419) (112,492)
Change in fund balances 6,247,254 5,798,197 1,855,944
Fund balance, beginning of year 11,950,595 11,950,595 10,094,651
Fund balance, end of year $18,197,849 $ 17,748,792 $ 11,950,595
See accompanying notes to consolidated financial statements.
2
COUNTY OF NEWELL NO. 4
Consolidated Statement of Cash Flows
December 31, 2005, with comparative figures for 2004
2005 2004
Cash provided by (used in):
Operations:
Excess of revenues over expenditures $ 5,208,709 $ 1,968,436
Change in non-cash financial assets and liabilities:
Taxes and grants in place of taxes receivable (112,075) 272,851
Trade and other receivables 179,998 11,324
Land held for resale (31,376) --
Prepaid expenses (3,006) (17,990)
Inventory of consumption (391,514) 143,546
Accounts payable and accrued liabilities 241,993 (362,719)
Employee benefit obligation 24,124 18,422
Unearned revenue (68,829) (165,722)
Provision for landfill and gravel pit closure and
post-closure costs (12,171) (591,000)
5,035,853 1,277,148
Investing:
Increase in investments 35,752 1,142,316
Advances of notes receivable (130,011) --
Receipts of notes receivable 556,829 528,302
462,570 1,670,618
Financing:
Proceeds of long-term debt 702,907 --
Repayment of long-term debt:
- operating (423,721) (401,630)
- capital (113,419) (112,492)
Decrease in deposit liabilities (140,811) (175,364)
24,956 (689,486)
Increase in cash 5,523,379 2,258,280
Cash and cash equivalents, beginning of year 9,608,238 7,349,958
Cash and cash equivalents, end of year $ 15,131,617 $ 9,608,238
See accompanying notes to consolidated financial statements.
3
COUNTY OF NEWELL NO. 4
Statement of Operating Fund
Year ended December 31, 2005, with comparative figures for 2004
Budget 2005 2004
(Unaudited)
Revenues:
Net municipal property taxes (note 14) $15,564,594 $ 15,741,755 $ 10,352,251
Proceeds from local improvements 155,555 146,123 150,012
Special levies 401,628 401,628 355,766
User fees and sale of goods 1,287,542 930,902 1,402,193
Government transfers (note 15) 868,579 1,101,032 1,253,831
Penalties and cost of taxes 101,000 115,462 154,576
Investment income 725,567 844,529 807,420
Licenses and permits 59,000 88,769 63,534
Other revenue 32,500 113,626 90,652
19,195,965 19,483,826 14,630,235
Expenditures:
Legislative 428,135 344,738 428,136
Administration 1,186,294 1,091,698 1,025,086
General 1,042,669 753,527 924,860
Fire and by-law enforcement 527,332 547,695 415,065
Ambulance services and first aid 55,312 55,312 221,247
Disaster and emergency services 9,400 26,860 6,039
Roads, streets, walks and lighting 5,908,615 9,361,119 6,433,411
Water and waste water 138,147 161,791 131,570
Waste management 174,888 175,553 177,879
Family and community support 189,282 38,826 184,182
Municipal planning 379,100 221,467 261,957
Community and agricultural services 852,480 820,783 646,873
Subdivision land and development 500 233 --
Recreation and parks 391,520 412,867 368,842
Culture and library 69,408 69,407 66,506
11,353,082 14,081,876 11,291,653
Excess of revenues over expenditures 7,842,883 5,401,950 3,338,582
Net inter-fund transfers:
Transfer to capital repayment of long-term
debt (113,420) (113,419) (112,492)
Transfers (to) from capital (839,081) 84,525 (530,061)
Transfer to reserves (6,890,382) (5,371,468) (2,676,029)
Change in fund balance -- 1,588 20,000
Balance, beginning of year 513,921 513,921 493,921
Balance, end of year $ 513,921 $ 515,509 $ 513,921
See accompanying notes to consolidated financial statements.
4
COUNTY OF NEWELL NO. 4
Statement of Capital Fund
Year ended December 31, 2005, with comparative figures for 2004
Budget 2005 2004
(Unaudited)
Revenues:
Government transfers (note 15) $ 42,203 $ 1,498,365 $ 2,320
Proceeds from local improvements -- 12,006 11,945
Proceeds from disposal of capital assets 8,500 362,153 1,610,750
50,703 1,872,524 1,625,015
Expenditures:
Administration 76,000 45,300 54,677
Fire and by-law enforcement 4,000 -- 47,398
Disaster and emergency services 128,750 -- --
Roads, streets, walks and lighting 1,222,062 1,633,432 2,238,356
Water and waste water 6,100 297,061 550,918
Waste management -- -- 4,240
Community and agricultural services 96,000 89,972 99,572
1,532,912 2,065,765 2,995,161
Deficiency of revenues over expenditures (1,482,209) (193,241) (1,370,146)
Net inter-fund transfers:
From operating fund 839,081 (84,525) 530,061
From reserves 473,306 84,416 334,359
Capital debt issued -- 702,907 --
Change in fund balance (169,822) 509,557 (505,726)
Balance, beginning of year (697,790) (697,790) (192,064)
Balance, end of year $ (867,612) $ (188,233) $ (697,790)
See accompanying notes to consolidated financial statements.
5
COUNTY OF NEWELL NO. 4
Statement of Reserves
Year ended December 31, 2005, with comparative figures for 2004
Budget 2005 2004
(Unaudited)
Balance, beginning of year $11,378,774 $ 12,134,464 $ 9,792,794
Add (deduct):
Transfer from operating 6,890,382 5,371,468 2,676,029
Transfer to capital (473,306) (84,416) (334,359)
Balance, end of year $17,795,850 $ 17,421,516 $ 12,134,464
See accompanying notes to consolidated financial statements.
6
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
1. Significant accounting policies:
The consolidated financial statements of the County of Newell No. 4 (the County) are the
representations of management prepared in accordance with accounting principles for local
governments as established by the Public Sector Accounting Board of the Canadian Institute of
Chartered Accountants. Significant aspects of the accounting policies adopted by the County are
as follows:
(a) Reporting entity:
The consolidated financial statements reflect the assets, liabilities, revenues and expenditures,
changes in fund balances and change in financial position 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.
Taxes levied also includes 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.
Interdepartmental and organizational transactions and balances are eliminated.
(b) Basis of accounting:
Revenues are accounted for in the period in which the transactions or events occurred that
gave rise to the revenues.
Funds from external parties and earnings thereon restricted by agreement or legislation are
accounted for as deferred revenue until used for the purpose specified.
(c) Fund accounting:
Funds consist of the operating, capital and reserve funds. Transfers between funds are
recorded as adjustments to the appropriate equity account.
(d) 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.
(e) Investments:
Investments are recorded at cost. Where there has been a loss in value of an investment
other than a temporary decline, the investment is written down to reflect the loss.
7
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
1. Significant accounting policies (continued):
(f) Inventories:
Inventories of materials and supplies for consumption are valued at the lower of cost and net
realizable value with cost determined by the average cost method.
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 waste water services, roads, sidewalks and street lighting are
recorded as capital assets under their respective function.
(g) Capital assets:
Capital assets are reported as expenditures in the period that they are acquired. Capital
assets are recorded at cost except for donated assets, which are recorded at estimated fair
value when acquired.
Government contributions for the acquisition of capital assets are recorded as capital revenue
and do not reduce the related capital asset costs.
Capital assets are not amortized.
(h) 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.
(i) Prepaid local improvements charges:
Construction and borrowing costs associated with local improvement projects are recovered
through annual special property assessments during the period of the related borrowing.
These levies are collectible from property owners for work performed by the County.
Where a taxpayer has elected to prepay the outstanding local improvement charge, such
amounts are recorded as deferred revenue. Deferred revenue is amortized to revenue on a
straight-line basis over the remaining term of the related borrowings.
In the event that the prepaid amounts are applied against the related borrowing, the deferred
revenue is amortized to the revenue by an amount equal to the debt repayment.
8
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
1. Significant accounting policies (continued):
(j) 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
covered by the Public Sector Pension Plans Act. The Plan serves about 133,000 people and
about 389 employers. It 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 5.525% of
pensionable earnings up to the years maximum pensionable earnings under the Canada
Pension Plan and 7.4% on pensionable earnings above this amount. Employees of the
County are required to make current service contributions of 4.525% of pensionable salary up
to the years maximum pensionable salary and 6.4% on pensionable salary above this
amount.
Total current service contributions by the County to the Local Authorities Pension Plan in 2005
were $174,920, (2004 - $148,151). Total current service contributions by the employees of
the County to the Local Authorities Pension Plan in 2005 were $152,898 (2004 - $126,769).
At December 31, 2004, the LAPP disclosed an actuarial deficiency of $1,288.9 million.
(k) Landfill and gravel pit closure and post-closure costs:
Pursuant to the Alberta Environment Protection and Enhancement Act, the County is required
to fund the closure of its landfill site and gravel pits and provide for post-closure care. Closure
and post-closure activities include the final clay cover, landscaping, as well as surface and
ground water monitoring, leachate control and visual inspection. The requirement is being
provided for over the estimated remaining life of the landfill site and gravel pit based on usage.
(l) Use of estimates:
The preparation of financial statements in conformity with Canadian generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amount 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 expenditure
during the period.
9
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
1. Significant accounting policies (continued):
(m) Operating fund:
Operating fund represents the amounts available to offset future operational revenue
requirements (or the shortfall which will be financed from future operational revenues).
(n) Capital fund:
Capital fund represents the amounts available to finance (or the shortfall in financing available
for) capital projects.
(o) Reserve fund:
Reserve fund represents the amounts set aside to finance future operating and capital
expenditures. Reserves are established at the discretion of Council. Transfers to and/or from
the reserve fund are reflected as an adjustment to the respective fund.
(p) Equity in capital assets:
Equity in capital assets represents the County's net investment in its total capital assets, after
deducting work-in-progress, the portion financed by third parties through debenture, bond, and
mortgage debts, long-term capital borrowing, capitalized leases, and other capital liabilities.
2. Cash and temporary investments:
2005 2004
Cash $ 1,927,583 $ 2,161,392
Temporary investments 13,204,034 7,446,846
$ 15,131,617 $ 9,608,238
Included in cash are amounts aggregating $202,407 (2004 - $343,218) not available for current
use.
2005 2004
Tax sale surplus $ 24,921 $ 23,844
Public reserve 177,486 319,374
$ 202,407 $ 343,218
10
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
3. Taxes and grants in place of taxes receivable:
2005 2004
Current year $ 382,239 $ 324,424
Arrears 329,241 274,981
711,480 599,405
Allowance for uncollectible taxes (152,340) (152,340)
$ 559,140 $ 447,065
4. Investments:
Long-term investments consist of fixed income securities with an aggregate market value of
$959,706 (2004 - $995,458).
5. Notes receivable:
2005 2004
Newell Foundation
This note is repayable in annual installments of $896,630
including interest at 5.5%. This note receivable expires
in 2018. $ 8,174,650 $ 8,598,370
Town of Brooks
This note is repayable in annual installments of $131,082
including interest at 5.25%. This note receivable
expires in 2013. 838,711 921,418
Bow Slope Fire Division
This note is repayable in annual installments of $32,113
including interest at 4.39%. This note receivable
expires in 2013. 212,769 234,584
Rosemary Fire Division
This note is repayable in annual installments of $38,583
including interest at 5.125%. This note receivable
expires in 2010. 166,468 195,055
Patricia and Duchess Fire Hall
This note is repayable in annual installments of $38,583
including interest at 5.125%. This note receivable
expires in 2007. 130,011 --
$ 9,522,609 $ 9,949,427
11
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
6. Capital assets:
2005 2004
Land $ 980,195 $ 980,195
Buildings 1,040,510 1,040,510
Distribution systems water and sewer 4,609,227 4,327,573
Other engineering structures 960,605 960,605
Machinery, equipment and furnishings 10,103,399 9,095,151
Vehicles 2,762,756 2,465,753
$ 20,456,692 $ 18,869,787
7. Employee benefit obligation:
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.
8. Long-term debt capital:
2005 2004
Tax supported debentures $ 1,125,077 $ 535,589
Principal and interest repayments are due as follows:
Principal Interest Total
2006 $ 177,552 $ 55,260 $ 232,812
2007 179,146 45,818 224,964
2008 188,539 36,425 224,964
2009 75,419 26,511 101,930
2010 79,271 22,659 101,930
Thereafter 425,150 58,600 483,750
$ 1,125,077 $ 245,273 $ 1,370,350
Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates
ranging from 4.307% to 11.75% per annum, before Provincial subsidy, and matures in periods
2006 through 2017. The average annual interest rate is 7.2% for 2005 (2004 7.9%). For
qualifying debentures, the Province of Alberta rebates 60% of interest in excess of 8%, 9% and
11% to a maximum annual rate of 12.5%, depending on the date borrowed. Debenture debt is
issued on the credit and security of the Count of Newell No. 4 at large.
Interest on long-term debt amounted to $32,139 (2004 - $38,641).
The County's total cash payments for interest in 2005 were $32,139 (2004 - $38,641).
12
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
9. Long-term debt operating:
2005 2004
Debenture supported with notes receivable $ 8,174,649 $ 8,598,370
Principal and interest repayments are due as follows:
Principal Interest Total
2006 $ 447,025 $ 449,606 $ 896,631
2007 471,611 425,020 896,631
2008 497,550 399,081 896,631
2009 524,915 371,716 896,631
2010 553,785 342,846 896,631
Thereafter 5,679,763 1,493,277 7,173,043
$ 8,174,649 $ 3,481,546 $ 11,656,196
Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at 5.5% per
annum, before Provincial subsidy, and matures in 2018. Debenture debt is issued on the credit
and security of the Count of Newell No. 4 at large.
Interest on long-term debt amounted to $467,101 (2004 $489,492).
The County's total cash payments for interest in 2005 were $472,910 (2004 - $495,000).
10. Provision for landfill and gravel pit closure and post-closure costs:
Alberta environmental law requires closure and post-closure care of landfill sites, which includes
final covering and landscaping, pumping of ground water and leachates from the site, and on-
going environmental monitoring, site inspections and maintenance.
The accrued liability for the remaining post-closure costs of the County's landfill and closure and
post-closure costs for the County's gravel pit is based on an estimate of future discounted costs.
The estimated closure and post-closure costs for the landfill are $357,625, and $240,890 for the
gravel pits, all of which have been accrued in the financial statements.
The County has not designated assets for settling closure and post-closure liabilities.
13
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
11. Capital fund
2005 2004
Amounts to be financed:
Patricia Curbstops $ (4,495) $ (5,423)
Rolling Hills Water Treatment Plant (49,962) (61,040)
Lake Newell Sewer Line -- (619,756)
Patricia Lagoon Discharge (82,374) (11,571)
Scandia Raw Water Irrigation (51,402) --
$ (188,233) $ (697,790)
The shortfall in the Patricia Curbstop, Rolling Hills Water Treatment Plant and Scandia Raw Water Irrigation
projects will be funded through local improvement levies. The shortfall in the Patricia Lagoon Discharge
project is expected to be funded through a government grant and local improvement levies.
12. Reserves:
Reserves for operating and capital activities changed as follows:
Transfers Transfers Ending
Opening in out balance
Operating:
Annual Paving Tax $ 2,015,946 $ 6,930,699 $ 2,441,218 $ 6,505,427
Municipal surplus 1,872,082 964,602 252,336 2,584,348
Debt reduction 1,308,923 24,312 11,208 1,322,027
Future expenditures 1,258,414 55,571 10,664 1,303,321
Brooks Recreation
Centre 921,418 -- 82,707 838,711
Secondary highway
#847 583,848 10,162 4,460 589,550
Special road project 344,778 206,139 35,113 515,804
Hard surface 255,215 4,136 1,658 257,693
Bow Slope fire truck 234,584 -- 21,815 212,769
Secondary highway
#862 231,007 3,413 1,658 232,762
Rosemary fire truck 195,055 -- 28,586 166,469
Public transportation 165,739 3,413 1,658 167,494
Agriculture Service
Board 136,439 18,205 45,445 109,199
Office renovations 132,075 11,964 1,102 142,937
Purchase of gravel 109,286 1,996 892 110,390
Planning 87,197 1,608 742 88,063
Road work 64,532 -- 64,532 --
Fire truck 62,787 31,422 30,603 63,606
Gravel crushing 53,399 965 445 53,919
Public works other 24,352 322 148 24,526
Shop 13,287 322 148 13,461
Patricia and Duchess
fire hall -- 192,000 61,989 130,011
10,070,363 8,461,251 3,099,127 15,432,487
14
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
12. Reserves (continued):
Transfers Transfers Ending
Opening in out balance
Capital:
Machinery and
equipment 1,226,285 130,559 397,276 959,568
Future expenditures
- general administration 665,636 200,293 21,697 844,232
Vehicle replacement 123,970 14,467 1,070 137,367
Scandia sewer 24,644 -- -- 24,644
Rolling Hills water and
sewer 6,543 -- -- 6,543
Scandia water reservoir 5,076 -- -- 5,076
Patricia water system 4,118 -- -- 4,118
Lake Newell road
prepaid 3,915 -- 348 3,567
Rolling Hills sewage
lagoon 2,076 -- -- 2,076
Patricia sewer 1,811 -- -- 1,811
Ranier water system 27 -- -- 27
2,064,101 345,319 420,391 1,989,029
$12,134,464 $ 8,806,570 $ 3,519,518 $ 17,421,516
13. Equity in capital assets:
Budget 2005 2004
(Unaudited)
Acquisition of capital assets:
Administration $ 76,000 $ 45,300 $ 54,677
Fire and by-law enforcement 4,000 -- 47,397
Disaster and emergency services 128,750 -- --
Roads, streets, walks, and lighting 1,222,062 1,633,432 2,238,357
Water and waste water 6,100 297,061 550,918
Waste management -- -- 4,240
Community and agricultural services 96,000 89,972 99,572
1,532,912 2,065,765 2,995,161
Disposal of capital assets (cost):
Administration -- (39,905) (3,393)
Roads, streets, walks and lighting -- (407,457) (2,399,550)
Water and waste water -- (9,343) --
Agricultural services -- (22,155) (24,760)
-- (478,860) (2,427,703)
15
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
13. Equity in capital assets (continued):
Budget 2005 2004
(Unaudited)
Capital financing:
Capital debt issued $ -- $ (702,907) $ --
Capital debt repaid from operating 113,420 113,419 112,492
113,420 (589,488) 112,492
Change in equity balance 1,646,332 997,417 679,950
Equity balance, beginning of year 18,334,198 18,334,198 17,654,248
Equity balance, end of year $ 19,980,530 $ 19,331,615 $ 18,334,198
Balance consists of:
Capital assets (note 6) $ 20,456,692 $ 18,869,787
Long-term debt capital (note 8) (1,125,077) (535,589)
$ 19,331,615 $ 18,334,198
14. Net municipal property taxes:
Budget 2005 2004
(Unaudited)
Taxation:
Real property taxes $ 8,628,126 $ 8,654,563 $ 7,271,952
Linear property taxes 17,863,704 18,031,016 13,614,696
Government grants in place of property
taxes 271,204 271,204 190,441
26,763,034 26,956,783 21,077,089
Requisitions:
Alberta School Foundation Fund 10,774,135 10,790,723 10,433,408
Newell Foundation 424,305 424,305 291,430
11,198,440 11,215,028 10,724,838
$ 15,564,594 $ 15,741,755 $ 10,352,251
16
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
15. Government transfers:
Budget 2005 2004
(Unaudited)
Provincial transfers:
Shared-cost agreements and grants $ 861,525 $ 1,093,979 $ 1,246,777
Shared-cost agreements and grants capital 42,203 1,498,365 2,320
903,728 2,592,344 1,249,097
Local government transfers:
Shared-cost agreements and grants 7,054 7,053 7,054
$ 910,782 $ 2,599,397 $ 1,256,151
16. Expenditures by object:
Budget 2005 2004
(Unaudited)
Operating:
Salaries, wages and benefits $ 4,426,090 $ 4,092,687 $ 3,798,045
Contracted and general services 3,182,350 6,588,071 3,811,383
Materials, goods, supplies and utilities 1,910,974 1,759,980 1,903,287
Provisions for allowances -- -- 2,365
Transfers to organizations 1,066,824 1,093,103 1,244,199
Bank charges and short-term interest 200 272 204
Interest on long-term debt 505,049 499,240 528,133
Other expenditures 261,595 48,522 4,037
11,353,082 14,081,876 11,291,653
Capital:
Purchase of capital assets 1,532,912 2,065,765 2,995,161
$ 12,885,994 $ 16,147,641 $ 14,286,814
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COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
17. Trust funds:
2005 2004
Scholarship funds:
Land of Promise Scholarship $ 8,970 $ 8,934
John W. Smidstrup Scholarship 63,780 63,302
York Tamura Scholarship -- 39,765
$ 72,750 $ 112,001
The above trust funds are not recorded in the financial statements (note 1(a)).
18. Salary and benefits disclosure:
Disclosure of salaries and benefits for elected municipal officials and the chief administrative
officer as required by provincial regulation is as follows:
2005 2004
Benefits &
Salary (1) Allowances (2) Total Total
Council:
Reeve $ 5,400 $ -- $ 5,400 $ 5,414
Division 1 26,035 3,522 29,557 27,287
Division 2 21,575 977 22,552 25,906
Division 3 22,905 3,386 26,291 33,286
Division 4 26,520 3,543 30,063 30,913
Division 5 17,581 718 18,299 26,792
Division 6 21,130 3,309 24,439 31,477
Division 7 22,075 3,350 25,425 36,959
Division 8 26,890 2,092 28,982 30,271
Division 9 25,355 2,000 27,355 22,075
Division 10 23,743 2,708 26,451 40,714
239,209 25,605 264,814 311,094
Chief Administrative Officer 109,053 18,207 127,260 117,893
Designated officers (3) 205,743 39,986 245,729 230,760
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.
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COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
19. Debt limits:
Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by
Alberta Regulation 265/00 for the County be disclosed as follows:
2005 2004
Total debt limit $ 29,786,977 $ 24,379,395
Total debt 9,299,726 9,133,959
$ 20,487,251 $ 15,245,436
2005 2004
Debt servicing limit $ 4,964,496 $ 4,063,233
Debt servicing 1,129,443 1,042,188
$ 3,835,053 $ 3,021,045
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. The calculation taken alone does not represent the financial
stability of the County. Rather, the financial statements must be interpreted as a whole.
20. Contingencies:
(a) The County of Newell No. 4 is a member of the Alberta Municipal Insurance Exchange
(MUNIX). Under the terms of membership, the County of Newell No. 4 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.
(b) The County, in the conduct of its normal activities, is a defendant in a legal proceeding.
While the ultimate outcome of this proceeding cannot be predicted at this time, it is the
opinion of the administration that adequate provision for this proceeding has been made in
the County's accounts. It is believed that the resolution of the proceeding will not have a
material effect on the financial position of the County, however, should any additional loss
result from the resolution of this proceeding, such amount would be expensed as the
related amount become known to the County.
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COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2005
21. Financial instruments:
The County of Newell No. 4's financial instruments consist of cash and temporary investments,
receivables, accounts payable and accrued liabilities, and long-term debt. It is management's
opinion that the County is not exposed to significant interest, currency or credit risk arising from
these financial statements. Unless otherwise noted, the fair value of these financial instruments
approximates their carrying values.
22. Comparative figures:
Where necessary the comparative figures for the 2004 year have been reclassified to conform
with 2005 financial statement presentation.
23. Approval of financial statements:
These financial statements were approved by Council and Management.
20