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Home My WebLink About2006-12-31 Year End Audited Financial SatementsConsolidated Financial Statements of Year ended December 31, 200 KPMG LLP Chartered Accountants 500 i all kid�,pCwrp, Tovvw 1100 1�11 Avon�(",, �.,CmOl To the Reeve and Members of Council We have audited the consolidated statement of financial position of the County of Newell No. 4 as at December 31, 2006 and the consolidated statements of financial activities and consolidated cash flows for the year then ended'. These financial statements are the responsibility of the County's 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, 2006 and the results of its financial activities and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Chartered Accountants Lethbridge, Canada February 14, 2007 COUNTY OF NEWELL NO. 4 Consolidated Statement of Financial Position MM MM� LNM Cash and temporary investments (note 2) $ 22,454,246 $ 15,131,617 Taxes and grants in place of taxes receivable mete ) 353,068 559,140 Trade and ether receivables 1,371,1'08 845,768 Land' held for resale 31,881 31,9+01 Prepaid expenses 127,963 123,205 Investments (note 4) 956,139 959,706 Notes receivable (vete 5) 8,871,783 9,522„609 Deposit Ilabilities (note 2) 34,166,138 27,173,946 Physical ,assets: 125,408 Inventory for consumption 1,176,698 816,669 Capital assets (note 6) 19,882,249 20,456,692 Fund balances: 21,058,947 21,273,361 55,225,085 $ 48,447,307 IMMOff M_ Accounts payable and accrued liabilities $ 3,645,829 $ 1,013,368 Employee benefit obligation (note 7) 176,856 201,922. Unearned revenue 34,192 51,022 Long-term debt — capital (mate 8) 947,525 1,125,077 Long -terra debt — operating i (note 9) 7,727,625 8,174,649 Provision for landfill closure and post -closure costs (note 10) 348,800 357,625 Provision for gravel pit closure and post -closure casts (note 10) 239,284 240,890 Deposit Ilabilities (note 2) 106,071 202,40'7 Other liabilities 125,408 13, 351, 584 11, 366,900 Iwu"1ulnlctpal Position: Fund balances: Operating 515,,52.3 515,509 Capital (mote 11) (240,067) (188,233) Reserves (note 12)' 22,663,321 17,421,5161 22, 938, 777 17, 748, 792 Equity in capital assets (note 13) 18,934,724 19,331,615 41,873, 501 37,080,407 Contingencies (note 20) 55,225,085 , 48,447,307' See accompanying notes to consolidated financial statements. COUNTY OF NEWELL NO. 4 Consolidated Statement of Financial Activities Year ended December 31, 2006, with comparative figures for 2005 ........ . ... .. Budget 2006 2�005 Capital financing transactions: (Unaudited) Revenues, 702,907 Net municipal property taxes (note 14) $18,055,541 $ 18,403,753 $ 15,741,755 Proceeds from local improvements 233,382 244,957 158,129 Special levies 429,739 429,739 401,628 User fees and sale of goods 1,694,100 805,779 930,902 Government transfers (note 15) 3,559,229 3,973,890 2,599,397 Penalties and cost of taxes 101,000 64,89,7 115,462 Investment income 710,006 1,521,986 844,529 Licenses and permits 62,000 79,205 88,769 Proceeds from disposal of capital assets 2,095,000 3,089,032 362,153 Other revenue 70,260 217,432 113,626 27,010,257 28,830,670 21,356,350 Expenditures: Legislative 430,000 353,335 344,738 Administration 1,343,836 1,180,161 1,136,998 General 827,849 590,907 753,527 Fire and by-law enforcement 405,5,46 532,919 547,695 Ambulance services and first aid 10,500 10,441 55,312 Disaster and emergency services 218,150 7,631 26,860, Roads, streets, walks and lighting 18,463,098 17,988,508 10,994,551 Water and waste water 280,735 248,119 458,852 Waste management 224,562 223,761 175,553 Family and community support 41,084 41,499 38,826 Municipal planning: 389,,877 306,172 221,467 Community and agricultural services 1,306,876 1,246,753, 910,755 Subdivision land and development 500 6,527 233 Recreation and parks 296,527 450,632 412,867 Culture and library 91,328 91,327 69,407 Other 184,441 24,330,468 23,463,133 16,147,641 Excess of revenues over expenditures 2,679,789 5,367,537 5,208,709 Capital financing transactions: Debenture debt issued 702,907 Repayment of long-term debt (177,552) (177,552) (113,419) Change in fund balances 2,502,237 5,189,985 5,798,197 Fund balance, beginning of year 17,748,792 17,748,79:2 11,950,595 Fund balance, end of year $20,251,029 $ 22,938,777 $ 17,748,,792 See accompanying notes to consolidated financial statements. N COUNTY OF NEWELL NO. Consolidated Statement of Cash Flows Investing, 2006 2005 Cash provided by (used in): 3,567 35,752 Operations: (130,011) Excess of revenues over expenditures $ 5,367,537 $ 5,208,709 Change in non-cash financial assets and liabilities: 654,443 462,570 Taxes and grants in place of taxes receivable 206,072 (112,075) Trade and other receivables (525,340) 179,998 Land held for resale 20 (31,376) Prepaid expenses (4,758) (3,006) Inventory for consumption (360,029) (391,514) Accounts payable and accrued liabilities 2,632,521 241,993 Employee benefit obligation (25,072) 24,124 Unearned revenue (16,830) (68,829) Provision for landfill and gravel pit closure and post -closure costs (10,431) (1 2, 171 Other 125,408 7,389,098 5,035,853 Investing, Decrease in investments 3,567 35,752 Advances of notes receivable (130,011) Receipts of notes receivable 650,876 556,829 654,443 462,570 Financing: Proceeds of long-term debt 702,90�7 Repayment of long-term debt: - operating (447,024) (423,721) - capital (177,552) (113,419) Decrease (720,912) 24,956 ncrease in cash Cash and cash equivalents, beginning of year 7,322,629 5,523,379 Cash and cash equivalents, end of year $ 22,454,246 $ 15,131,617 See accompanying notes to consolidated financial statements. 3 COUNTY OF NEWELL NO, 4 Statement of Operating Fund Year ended December 31, 2006, with comparative figures for 2005 Excess of revenues over expenditures Budget 2006 2005 Net inter -fund transfers'. (Unaudited) $ 515,523 $ 515,509 Revenues: Net municipal property taxes (note 14) $18,055,541 $ 18,403,753 15,741,755 Proceeds from local improvements 233,382 232,926 146,123 Special ievies 429,739 429,739 401,628 User fees and sale of goods 1,694,100 805,779 930,902 Government transfers (note 15) 1,107,323 1,374,623 1,101,032 Penalties and cost of taxes 101,000 64,897 115,462 investment income 710,006 1,521,986 844,529 Licenses and permits 62,000 79,205 88,769 Other revenue 70,260 217,432 113,626 22,463,361 23,130,340 19,,483,826 Expenditures: Legislative 430,000 353,335 344,738 Administration 1,312,836 1,180,161 1,091,698 General 827,849 590,907 753,527 Fire and by-law enforcement 401,546 532,919 547,695 Ambulance services and first aid 10,500 10,441 55,312 Disaster and emergency services 19,400 7,631 26,860 Roads, streets, walks and lighting 15,688,098 15,314,900 9,361,119 Water and waste water 280,735 169,222 161,791 Waste management 224,562 223,761 175,553 Family and community support 41,084 41,499 38,826 Municipal planning 389,877 306,172 221,467 Community and agricultural services 1,053,876 1,001,733 820,783 Subdivision land and development 500 6,527 233 Recreation and parks 296,527 450,632 412,867 Culture and library 91,328 91,327 69,407 Other 184,441 21,068,718 20,465,608 14,081,876 Excess of revenues over expenditures 1,394,633 2,664,732 5,401,950 Net inter -fund transfers'. $ 798,644 $ 515,523 $ 515,509 Transfer to capital - repayment of long-term debt (177,552) (177,552) (113,419) Transfers from capital 269,930 1,200,596 84,525 Transfer to reserves(1,203,876) (3,687,762) (5,371,468) .... . ..... Change in fund balance 283,135 14 1,588 Balance, beginning of year 515,509 515,509 513,921 Balance, end of year $ 798,644 $ 515,523 $ 515,509 See accompanying notes to consolidated financial statements. 4 COU�NTY OF NEWELL NO. Statement of Capital Fund Year ended December 31, 2006, with comparative figures for 2005 Expenditures: Budget 2006 2005 Administration (Unaudited) 45,300 Revenues: 4,000 Government transfers (note 15) $ 2,451,906 $ 2,599,267 $ 1,498,365 Proceeds from local improvements 2,775,000 12,031 12,006 Proceeds from, disposal of capital assets 2,095,000 3,089,032 362,153 Waste management 4,546,906 5,700,330 111,872,524 Expenditures: Administration 31,000 45,300 Fire and by-law enforcement 4,000 Disaster and emergency services 198,750 Roads, streets, walks and lighting 2,775,000 2,673,608 1,633,432 Water and waste water 78,897 297,061:1 Waste management Community and agricultural services 253,000 245,020 89,972 3,261,750 2,997,525 2,065,765 Excess (deficiency) of revenues over expenditures 1,285,156 2,702,805 (193,241) Net inter -fund transfers: To operating fund (269,930) (1,200,596) (84,525) From (to) reserves (1,028,431) (1,554,043) 84,416 Capital debt issued 702,907 Change in fund balance (13,205) (51,834) 509,557 Balance, beginning of year (188,,233) (188,233) (697,790) Fe. n, -e, end of year ...... ..... .... .. (240i,067) $i (1880233) M COUNTY OF NEWELL NO. Statement of Reserves Year ended December 31, 2006, with comparative figures for 2005 Budget 2006 21165 (Unaudited) Balance, beginning of year $17,421,516 17,421,516 $ 12,134,464 Add (deduct): Transfer from operating 1,2113„876 3,687„762 5,371,468 Transfer from (to) capital 1,428,431 1,554,043 (84,416) Balance, end of year $19,653,823 $ 22,663,321 $ 17,421,516 See accompanying notes to consolidated financial statements. R COUNTY OF NEWELL NO. 4 Notes to Consol:lidated Financial Statements 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: DIMSEEZ-= 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. 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. M COUNTY OF NEWELL NO. 4 Notes to Consolidated Financial Statements 1011010911112�10MJMMQMV 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: Capitali 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. M ills 11L rel 1110:11iffeliff M-1 W LUMMEONIIIII I Ler. I (no M a I fr.. I at 1411 1. Significant accounting policies (continued): NE"opmor'sm =-�� 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 133,0010 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 year"s 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 year's 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 2.006 were $163,684, (2005 - $174,920). Total current service contributions by the employees of the County to the Local Authorities Pension Plan in 2006 were $144,010 (2005 - $152,898). At December 31, 2006, 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. (1) 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, M COUNTY OF NEWELL NO. 4 Notes to Consolidated Financial Statements 1. Significant accounting policies (continued) - (m) Operating fuind:: 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, EMMEMEM 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 M oil 2. Cash and temporary investments: Cash Temporary investments $ 3,840,000 $ 1,927,583 18,,614,246 13,204,034 $ 22,454,246 $ 15,131,617 Included in cash are amounts aggregating $106,071 (2005 - $202,407) not available for current use. Tax sale surplus Public reserve W 17,074 $ 24,921 88,997 177,486 $ 106,071 $ 202,407 COUNTY OF NEWELL NO. 4 Notes to Consolidated Financial Statements 3. Taxes and grants in place of taxes receivable - Current year $ 168,816, $ 382,239 Arrears 336,592 329,241 505,408 711,480 Allowance for uncollectible, taxes (152,340) (152,340) $ 353,068 $ 559,140 . ............. .. — 4. Investments: Long-term investments consist of fixed income securities with an aggregate market value of $956,138 (2005 - $959,706). 5. Notes receivable: ;!I jp� r, 111111 !!!!11 11, IMITIM Newell Foundation This note is repayable in annual installments of $896,630 including interest at 5.5%. This note receivable expires in 2018. $ 7,727,625 $, 8,174,650 City of Brooks This note is repayable in annual installments of $131,082 including interest at 5.25%. This note receivable expires in 2013. 751,662 838,711 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. 189,997 212,769 Rosemary Fire Division This note is repayable in annual installments of $38,583 including: interest at 5.125%. This note receivable expires in 2010. 136,417 166,468 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. 66,0'32 130,011 $ 8,871,733 $ 9,522,609 11 COUNTY OF NEWELL NO. 4 Notes to Consolidated Financial Statements 6. Capital assets- ..................... 2006 2005 Land Buildings Distribution systems .- water and sewer Other engineering structures Machinery, equipment and furnishings Vehicles ! . 0 $ 919,406 $ 980,195 684,332 1,040,510 4,688, 125 4,609,227 960,605, 960,605 ,9 0. 04 10,103,399 2,725,677 2,762,756 $ 19,882,249 $ 20,456,692 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-, 2006 2005 Tax supported debentures $ 947,525 $ 1,125,077 Principal and interest repayments are due as follows: Principal Interest Total 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 2011 75,459 18,578 94,037 Thereafter 349,691 40,022 389,713 $ 947,525 $ 190,013 $ 1,137,538 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 2008 through 2017. The average annual interest rate is 7.1% for 2006 (2005 - 7.2%). 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 $55,260 (2005 - $32,139). The County's total cash payments for interest in 2006 were $55,260 (2005 - $32,139), im COUNTY" OF NEWELL NO. Notes to Consolidated Financial Statements Year ended December 31, 2006 9. Lung -tern? debt — operating: Debenture supported with notes receivable $ 7,727,625 $ 8,174,649 Principal and interest repayments are due as follows: Principal Interest Total 2007 $ 471,61.1 $ 425,019 $ 896,639 2008 497,.550 399,080 896,630 2009 524,915 371,715 896„630 2010 553,785 342,845 896,630 20111 584,243 312,387 896,630 Thereafter 5,095,521 1,180,892 6,276,41'3 ,W r 1 : 9 ,563 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 or) the credit and security of the Count of Newell No. 4 at large. Interest on long -terra debt amounted to $443,476 (2005 — $467,101).. The County's total cash payments for interest in 2006 were $449„606 (2005. - $472„910). 10. Provision for landfill and gravel Pit closure and post -closure casts: 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 past -closure costs for the County's gravel pat is based on an estimate of future discounted costs. The estimated closure and post -closure costs for the landfill are $348,800„ and $239,.2.84 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. im UNITY OF NE"W"ELL NO. 4 Notes to Consolidated Financial Statements 11. apital fund $6,505,427 $ 6,212,144 $ 6,929,,247 2006 2005 Amounts to be financed: 4,179,287 25,978 Patricia Curb,stops $ (3,501) (4,495) Rolling Hills Water Treatment Plant (38,925) (49,962.) Patricia Lagoon Discharge (69„495) (82,374) Scandia Raw Water Irrigation (101,.291) (51,482) Patricia Raw Water Irrigation (5,855) -- Aimaoto Raw Water Irrigation (21,000) -- $ (240,067) (188„233) The shortfall in the above projects will be funded through Racal improvement levies 12. Deserves; Reserves for operating and capital activities changed as follows: 589,550 21,731 Transfers Transfers Ending Opening in out balance NE Annual Laving Tax $6,505,427 $ 6,212,144 $ 6,929,,247 5,788,324 Municipal surplus 2,584,348 4,179,287 25,978 6,737,657 Debt reduction 1,322,027 44,546 772 1365,861 Future expenditures 1,303,321 43,586 33,421 1,313,486 Brooks Recreation Centre 838,711 -- 87,049 751,662 Secondary highway #847 589,550 21,731 316 619,965 Special road project 515,804 62,722 304 578,222 Hard surface 257,693 8,907 152 266,448 Bow Slope fire truck 212,769 -- 22,772. 189„997 Secondary highway #862 232,762 7,293 152 239,903 Rosemary fire truck 166,469 -- 30,051 136„418 Public transportation 167,494 5,937 152 173,279 Agriculture Service Board 109,199 10,770 97,605 22,364 Office renovations 142,937 32,903 -- 175,840 Purchase of gravel 110„390 3,808 68 114,130 Planning 88,063 15,391 -- 103,454 Road work -- 1,082,812 800,000 282„812. Fire truck 63„606 32,518 30,000 66,124 Gravel crushing 53„919 1,800 -- 55,719 Public works - other 24,526 9,949 -- 34,475 Shop 13,461 600 -- 14,061 Patricia and Duchess fire hall 130,011 - 63,979 66,032 Economic Development -- 33,076 -- 33„076 Municipal Infrastructure Program -- 1,355,.503 1,355,563 -- 15,432,487 13,165,283 9,477, 521 19,120,249 14 COUNTY OF NEWELL NO. 4 Notes to Consolidated Financial Statements 12. Reserves (continued): 13. Equity in capital assets: Budget 2006 2005 (Unaudited) Acquisition of capital assets: Administration $ 31,000 Transfers Transfers Ending 4,000 Opening in out balance Capital: -- Roads, streets, walks, and lighting 2,775,000 2,673,609 Machinery and Water and waste water -- 78,897 297,061 equipment $ 959,568 262,459 $ 575 1,,221,452 Future expenditures 245,020 89,972 3,261,750 - general administration 844,232 1,204,329 6,973 2,041,588 Vehicle replacement 137,367 110,190 54,034 193,523 Scandia sewer 24,644 -- 24,644 -- Rolling Hills water and sewer 6,543 16,818 -- 23,361 Scandia, water reservoir 5,076 32,138 -- 37,214 Patricia water system, 4,118 -- 4,118 -- Lake Newell road prepaid 3,567 348 3,219 Rolling Hills sewage lagoon 2,076 -- 2,076 -- Patricia sewer 1,811 15,904 -- 17,715 Rainier water system 27 -- 27 -- Lake Newel sewer -- 5,000 -- 5,000 1,989,029 1,646,838 92,795 3,543,072 $17,421,516 $14,812,121 $ 9,570,316 $ 22,663,321 13. Equity in capital assets: Budget 2006 2005 (Unaudited) Acquisition of capital assets: Administration $ 31,000 $ $ 45,300 Fire and by-law enforcement 4,000 -- Disaster and emergency services 198,750 -- -- Roads, streets, walks, and lighting 2,775,000 2,673,609 1,633,432 Water and waste water -- 78,897 297,061 Waste management -- -- -- Community and agricultural services 253,000 245,020 89,972 3,261,750 2,997,526 2,065,765 Disposal of capital assets (cost): Administration (14,459) (39,905) Roads, streets, walks and lighting (3,359,276) (407,457) Water and waste water (9,343) Agricultural services (198,233) (22,155) (3,571,969) (478,860) 15 COUNTY OF NEWELL NO. 4 Notes to Consolidated Financial Statements 13. Equity in capital assets (continued): Budget 2006 2005 (Unaudited) Capital financing: Capital debt issued $ $ $ (702,907) Capital debt repaid from operating 177,552 177,552 113,419 177,552 177,552 (589,488) ........... Change in equity balance 3,439,302 (396,891) 997,417 Equity balance, beginning of year 19,331,615 19,331,615 18,334,198 Equity balance, end of year $ 22,770,917 $ 18,934,724 $ 19,331,615 Balance consists of: Capital assets (note 6) $ 19,882,249 $ 20,456,692 Long-term debt -- capital (note 8) (947,525) (1,125,077) 29,936,198 $ 18,934,724 $ 19,331,615 14. Net municipal property taxes: Budget 2006 2005 (Unaudited) Real property taxes $ 9,067,621 $ 9,335,222 $ 8,654,563 Linear property taxes 20,,260,188 20,340,415 18,031,016 Government grants in place of property taxes 260,560 260,561 271,204 29,588,369 29,936,198 26,956,783 Requisitions: Alberta School Foundation Fund 11,105,188 11,104,805 10,790,723 Newell Foundation 427,640 427,640 424,305 11,532,828 11,532,445 11215,028 $ 18,055,541 $ 18,403,753 $ 15,741,755 w� w w • r� rKIM IM11 Year ended December 31, 2006 15,. Government transfers: Budget 2006. 2005 (Unaudited) Provincial transfers: Shared -cast agreements and grants $ 1,107,323 $ 1,367„746 1,093,979 Shared -cast agreements and grants —capital 2,461,996 2,599,267 1,498,365 3,689„229 3,967,013 21592,344 Focal government transfers: Shared -cast agreements and grants -- 6,877 7,053 16. (Expenditures by abject: 3,559,229, w 2,599,397 _ Budget 2006 2005 (Unaudited) Operating: Salaries, wages and benefits $ 4,550,781 $ 4,194,629 $ 4,092„687 Contracted and general services 12,855,298 12,459,800 6,588,071 Materials, goods, supplies and utilities 2,274,539 2,010,140 1„759,980 Transfers to organizations 824„691 1,110,313 1,093,103 Funk charges and short-term interest 1,450 880 2.72. Interest on lona-term debt 504,866 498,736 499,240 Other expenditures 57,093 190„910 48,522 21,068,718 20,465,608 14,081,876 Capital: Purchase of capital assets 3,261,750 2',997,525 2,065,765 $ 24,330,468 $ 23,463,133 16,147,641 17 COUNTY OF NEWELL NO. 4 Notes to Consolidated Financial Statements Year ended December 31, 2006 17. Trust funds: 2006 2005 Scholarship funds: Land of Promise Scholarship 8,982 $ 8,970 John W. Smidstrup Scholarship 64,136 63,780 73,118 $ 72,750 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: Nor 1� Benefits & Salary (1) Allowances (2) Total Total Reeve $ 5,400 $ $ 5,400 $ 5,400 Division 1 22,690 3,492 26,182 29,557 Division 2 22,721 912 23,633 22,552 Division 3 27,030 3,674 30,704 26,291 Division 4 27,144 3,670 30,814 30,063 Division 5 19,499 724 20,223 18,299 Division 6 20,484 3,404 23,888 24,439 Division 7 19,876 3,380 23,256 25,425 Division 8 24,665 2,,192 26,857 28,982 Division 9 26,840 1,942 28,782 27,355 Division 10 22,996 2,178 25,1174 26,451 239,345 25,568 264,913 264,814.• Chief Administrative Officer 113,,016 19,546 132,562 127,260 Designated officers (3) 190,064 37,487 227,551 245,729 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, 18 COUNTY OF NEWELL NO, 4 Notes to Consolidated Financial Statements 11 1111i IN a I 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: 2006 2005 Total debt limit $ 39,333,509 $ 29,786,977 Total debt 8,675,150 9,299,726 . . . ..... .. $ 30,658,35i9 $ 20,487,251 Debt servicing limit $ 6,555,,585 $ 4,964,496 Debt servicing 1,121,594 1,,129,443 $ 5,433,991 $ 3,835,053 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. (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. 19 COUNTY OF NEWELL, NO. 4 Notes to Consolidated Financial Statements 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 2005 year have been reclassified to conform with 2006 financial statement presentation. 23. Approval of financial statements: These financial statements were approved by Council and Management. K11