HomeMy WebLinkAbout2007-12-31 Year End Audited Financial SatementsConsolidated Financial Statements of
COUNTY OF NEWELL NO.4
Year ended December 31, 2007
County of Newell No. 4
KPMG LLP
chartered Accountants
500 C c�odge
Termho( w 3`30,5700
We have audited the consolidated statement of financial position of the County of Newell No. 4 as at
December 31, 2007 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, Cur 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, 2007 and the reSURS 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, 2008
COUNTY OF NEWELL NO.4
Consolidated Statement of Financial Position
December 31, 2007, with comparative figures for 2006
2007 2006
Financial Assets:
Cash and temporary investments (note 3)
$ 24,794,032
$ 22,454,246
Taxes and grants in place of taxes receivable (note 4)
379,050
353,068
Trade and other receivables
4,739,005
1,371,108
Land held for resale
31,881
31,881
Prepaid expenses
125,377
127,963
Investments (note 5)
10,730,345
956,139
Notes receivable (note 6)
8,397,057
8,871,733
Other
5,969
--
49,202,716
34,166,138
Physical assets:
Inventory for consumption
1,153,458
1,176,698
Capital assets (note 7)
19,010,143
19,882,249
20,163,601
21,058,947
$ 69,366,317
$ 55,225,085
Liabilities:
Accounts payable and accrued liabilities
$ 6,336,076
$ 3,645,829
Employee benefit obligation (note 8)
225,987
176,850
Unearned revenue
47,488
34,192
Long-term debt — capital (note 9)
768,379
947,525
Long-term debt —operating (note 10)
7,256,014
7,727,625
Provision for landfill closure and post -closure costs (note 11)
339,849
348,800
Provision for gravel pit closure and post -closure costs (note 11)
239,284
239,284
Deposit liabilities (note 3)
119,913
106,071
Other liabilities
--
125,408
15,332,990
13,351,584
Municipal Position:
Fund balances:
Operating
515,524
515,523
Capital (note 12)
(222,371)
(240,067)
Reserves (note 13)
35,498,409
22,663,321
35,791,562
22,938,777
Equity in capital assets (note 14)
18,241,764
18,934,724
54,033,326
41,873,501
Contingent liability (note 21)
$ 69,366,317 $ 55,225,085
See accompanying notes to consolidated financial statements.
COUNTY OF NEWELL NO.4
Consolidated Statement of Financial Activities
Year ended December 31, 2007, with comparative figures for 2006
Budget 2007 2006
Excess of revenues over expenditures
(Unaudited)
13,031,931
5,367,537
Revenues:
Net municipal property taxes (note 15)
$ 21,727,926
$ 21,628,222
$ 18,403,753
Proceeds from local improvements
224,924
242,601
244,957
Special levies
507,227
507,227
429,739
User fees and sale of goods
815,445
666,199
805,779
Government transfers (note 16)
4,031,400
8,350,378
3,973,890
Penalties and cost of taxes
80,500
90,991
64,897
Investment income
757,099
1,718,202
1,521,986
Licenses and permits
65,000
39,250
79,205
Proceeds from disposal of capital assets
596,400
2,750,525
3,089,032
Other revenue
53,100
383,999
217,432
28,859,021
36,377,594
28,830,670
Expenditures:
Legislative
472,866
389,543
353,335
Administration
1,880,232
1,888,614
1,180,161
General
1,008,316
945,693
590,907
Corporate safety
236,484
172,157
--
Fire and by-law enforcement
772,619
702,919
532,919
Ambulance services and first aid
--
--
10,441
Disaster and emergency services
51,420
38,348
7,631
Roads, streets, walks and lighting
14,946,895
16,148,017
17,988,508
Water and waste water
404,510
607,995
248,119
Waste management
232,100
223,210
223,761
Family and community support
41,640
38,857
41,499
Municipal planning
321,512
235,524
306,172
Community and agricultural services
1,216,369
1,370,188
1,246,753
Subdivision land and development
301,091
12,676
6,527
Recreation and parks
466,005
465,035
450,632
Culture and library
92,362
92,363
91,327
Other
--
14,524
184,441
22,444,421
23,345,663
23,463,133
Excess of revenues over expenditures
6,414,600
13,031,931
5,367,537
Capital financing transactions:
Repayment of long-term debt
(179,145)
(179,146)
(177,552)
Change in fund balances
6,235,455
12,852,785
5,189,985
Fund balance, beginning of year
22,938,777
22,938,777
17,748,792
Fund balance, end of year $ 29,174,232 $ 35,791,562 $ 22,938,777
See accompanying notes to consolidated financial statements.
2
COUNTY OF NEWELL NO.4
Consolidated Statement of Cash Flows
December 31, 2007, with comparative figures for 2006
2007 2006
Cash provided by (used in):
Operations:
Excess of revenues over expenditures
$ 13,031,931
$ 5,367,537
Change in non-cash financial assets and liabilities:
Taxes and grants in place of taxes receivable
(25,982)
206,072
Trade and other receivables
(3,367,897)
(525,340)
Land held for resale
--
20
Prepaid expenses
2,586
(4,758)
Inventory for consumption
23,240
(360,029)
Accounts payable and accrued liabilities
2,690,248
2,632,521
Employee benefit obligation
49,137
(25,072)
Unearned revenue
13,296
(16,830)
Provision for landfill and gravel pit closure and
post -closure costs
(8,951)
(10,431)
Other liabilities
(125,408)
125,408
Other
(5,969)
--
12,276,231
7,389,098
Investing:
Decrease (increase) in investments
(9,774,206)
3,567
Advances of notes receivable
(209,950)
--
Receipts of notes receivable
684,626
650,876
(9,299,530)
654,443
Financing:
Repayment of long-term debt:
- operating
(471,611)
(447,024)
- capital
(179,146)
(177,552)
Increase (decrease) in deposit liabilities
13,842
(96,336)
(636,915)
(720,912)
Increase in cash 2,339,786 7,322,629
Cash and cash equivalents, beginning of year 22,454,246 15,131,617
Cash and cash equivalents, end of year $ 24,794,032 $ 22,454,246
See accompanying notes to consolidated financial statements.
K7
COUNTY OF NEWELL NO.4
Statement of Operating Fund
Year ended December 31, 2007, with comparative figures for 2006
Excess of revenues over expenditures
Budget
2007
2006
Net inter -fund transfers:
(Unaudited)
Revenues:
Net municipal property taxes (note 15)
$ 21,727,926
$ 21,628,222
$ 18,403,753
Proceeds from local improvements
224,924
224,906
232,926
Special levies
507,227
507,227
429,739
User fees and sale of goods
815,445
666,199
805,779
Government transfers
1,091,762
1,261,311
1,374,623
Penalties and cost of taxes
80,500
90,991
64,897
Investment income
757,099
1,718,202
1,521,986
Licenses and permits
65,000
39,250
79,205
Other revenue
53,100
302,066
217,432
25,322,983
26,438,374
23,130,340
Expenditures:
Legislative
472,866
389,543
353,335
Administration
1,729,548
1,803,367
1,180,161
General
1,008,316
945,693
590,907
Corporate safety services
186,484
125,335
--
Fire and by-law enforcement
772,619
702,919
532,919
Ambulance services and first aid
--
--
10,441
Disaster and emergency services
18,400
4,457
7,631
Roads, streets, walks and lighting
13,415,963
14,239,651
15,314,900
Water and waste water
404,510
607,995
169,222
Waste management
232,100
223,210
223,761
Family and community support
41,640
38,857
41,499
Municipal planning
321,512
235,524
306,172
Community and agricultural services
963,154
1,056,076
1,001,733
Subdivision land and development
301,091
12,676
6,527
Recreation and parks
466,005
465,035
450,632
Culture and library
92,362
92,363
91,327
Other
--
14,524
184,441
20,426,570
20,957,225
20,465,608
Excess of revenues over expenditures
4,896,413
5,481,149
2,664,732
Net inter -fund transfers:
Transfer to capital - repayment of long-term
debt
(179,145)
(179,146)
(177,552)
Transfers from capital
596,400
5,635,492
1,200,596
Transfer to reserves
(5,313,668)
(10,937,494)
(3,687,762)
Change in fund balance
--
1
14
Balance, beginning of year
515,523
515,523
515,509
Balance, end of year $
515,523
$ 515,524
$ 515,523
See accompanying notes to consolidated financial statements.
4
COUNTY OF NEWELL NO.4
Statement of Capital Fund
Year ended December 31, 2007, with comparative figures for 2006
Balance, end of year $ (240,067) $ (222,371) $ (240,067)
See accompanying notes to consolidated financial statements.
5
Budget
2007
2006
(Unaudited)
Revenues:
Government transfers
$ 2,939,638
$ 7,089,067
$ 2,599,267
Proceeds from local improvements
--
17,695
12,031
Proceeds from disposal of capital assets
596,400
2,750,525
3,089,032
Other
--
81,933
—
3,536,038
9,939,220
5,700,330
Expenditures:
Administration
150,684
85,247
--
Corporate safety
50,000
46,822
--
Disaster and emergency services
33,020
33,891
--
Roads, streets, walks and lighting
1,530,932
1,908,366
2,673,608
Water and waste water
--
--
78,897
Community and agricultural services
253,215
314,112
245,020
2,017,851
2,388,438
2,997,525
Excess of revenues over expenditures
1,518,187
7,550,782
2,702,805
Net inter -fund transfers:
To operating fund
(596,400)
(5,635,492)
(1,200,596)
To reserves
(921,787)
(1,897,594)
(1,554,043)
Change in fund balance
--
17,696
(51,834)
Balance, beginning of year
(240,067)
(240,067)
(188,233)
Balance, end of year $ (240,067) $ (222,371) $ (240,067)
See accompanying notes to consolidated financial statements.
5
COUNTY OF NEWELL NO.4
Statement of Reserves
Year ended December 31, 2007, with comparative figures for 2006
Balance, beginning of year
Add (deduct):
Transfer from operating
Transfer from capital
Budget 2007 2006
(Unaudited)
$ 22,663,321
5,313,668
921,787
$ 22,663,321
10,937,494
1,897,594
$ 17,421,516
3,687,762
1,554,043
Balance, end of year $28,898,776 $ 35,498,409 $ 22,663,321
See accompanying notes to consolidated financial statements.
C
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
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, 2007
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, 2007
1. Significant accounting policies (continued):
Q) 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 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 2007
were $210,633 (2006 - $163,684). Total current service contributions by the employees of the
County to the Local Authorities Pension Plan in 2007 were $186,219 (2006 - $144,010).
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.
9
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
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. Tangible capital assets:
Effective for fiscal years commencing on or after January 1, 2009, revised standards have been
issued for the recognition, measurement and disclosure of tangible capital assets. The revised
standards provide guidance on the recognition and measurement of tangible capital assets
including amortization over their estimated useful lives. The County is progressing with its
implementation plan and expects to be complete by December 31, 2008.
3. Cash and temporary investments:
its,
2007
2006
Cash
Temporary investments
$ 3,468,254
21,325,778
$ 3,840,000
18,614,246
$ 24,794,032
$ 22,454,246
Included in cash are amounts aggregating $119,913 (2006 - $106,071) not available for current
use.
2007
2006
Tax sale surplus
Public reserve
$ 15,850
104,063
$ 17,074
88,997
$ 119,913
$ 106,071
its,
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
4. Taxes and grants in place of taxes receivable:
2007 2006
Current year $ 203,947 $ 168,816
Arrears 327,443 336,592
531,390 505,408
Allowance for uncollectible taxes (152,340) (152,340)
$ 379,050 $ 353,068
5. Investments:
Long-term investments consist of fixed income securities with an aggregate market value of
$10,730,345 (2006 - $956,139).
6. Notes receivable:
11
2007 2006
Newell Foundation
This note is repayable in annual installments of $896,630
including interest at 5.5%. This note receivable expires
in 2018.
$ 7,256,014 $ 7,727,625
City of Brooks
This note is repayable in annual installments of $131,082
including interest at 5.25%. This note receivable
expires in 2013.
660,043 751,662
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.
166,224 189,997
Rosemary Fire Division
This note is repayable in annual installments of $38,583
including interest at 5.125%. This note receivable
expires in 2010.
104,826 136,417
Rolling Hills Fire division
This note is repayable in annual installments of $39,585
including interest at 3.954°/x. This note receivable
expires in 2014.
209,950 --
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.
-- 66,032
$ 8,397,057 $ 8,871,733
11
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
7. Capital assets:
2007
2006
2007
2006
Land
$ 919,406
$ 919,406
Buildings
692,706
684,332
Distribution systems - water and sewer
4,688,125
4,688,125
Other engineering structures
960,605
960,605
Machinery, equipment and furnishings
8,411,804
9,904,104
Vehicles
3,337,497
2,725,677
79,271
$ 19,010,143
$ 19,882,249
8. 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.
9. Long-term debt - capital:
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 2007 (2006 - 7.1%). 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 $45,818 (2006 - $55,260).
The County's total cash payments for interest in 2007 were $45,818 (2006 - $55,260).
12
2007
2006
Tax supported debentures
$ 768,379
$ 947,525
Principal and interest repayments are due as follows:
Principal
Interest
Total
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
2012
78,860
15,177
94,037
Thereafter
270,831
24,846
295,677
$ 768,379
$ 144,196
$ 912,575
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 2007 (2006 - 7.1%). 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 $45,818 (2006 - $55,260).
The County's total cash payments for interest in 2007 were $45,818 (2006 - $55,260).
12
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
10. Long-term debt — operating:
2007 2006
Debenture supported with notes receivable $ 7,256,014 $ 7,727,625
Principal and interest repayments are due as follows:
$ 7,256,014 $ 2,606,918 $ 9,862,932
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 $418,553 (2006 — $443,476).
The County's total cash payments for interest in 2007 were $425,019 (2006 - $449,606).
11. 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 $339,849, and $239,284 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
Principal
Interest
Total
2008
$ 497,550
$ 399,080
$ 896,630
2009
524,915
371,715
896,630
2010
553,785
342,845
896,630
2011
584,243
312,387
896,630
2012
616,377
280,253
896,630
Thereafter
4,479,144
900,638
5,379,782
$ 7,256,014 $ 2,606,918 $ 9,862,932
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 $418,553 (2006 — $443,476).
The County's total cash payments for interest in 2007 were $425,019 (2006 - $449,606).
11. 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 $339,849, and $239,284 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, 2007
12. Capital fund
Amounts to be financed:
Patricia Curbstops
Rolling Hills Water Treatment Plant
Patricia Lagoon Discharge
Scandia Raw Water Irrigation
Patricia Raw Water Irrigation
Aimoto Raw Water Irrigation
2007 2006
$ (2,438)
(27,940)
(63,847)
(101,291)
(5,855)
(21,000)
$ (3,501)
(38,925)
(69,495)
(101,291)
(5,855)
(21,000)
$ (222,371) $ (240,067)
The shortfall in the above projects will be funded through local improvement levies
13. Reserves:
Reserves for operating and capital activities changed as follows:
Rosemary fire truck
Opening
Transfers
in
Transfers
out
Ending
balance
Operating:
173,279
9,573
97,915
84,937
Annual Paving Tax $
5,788,324
$ 8,933,953
$ 5,885,587
$ 8,836,690
Municipal surplus
6,737,657
1,107,708
496,593
7,348,772
Debt reduction
1,365,801
48,421
12,268
1,401,954
Future expenditures
1,313,486
46,129
10,158
1,349,457
Brooks Recreation
103,454
3,769
9,794
97,429
Centre
751,662
--
91,619
660,043
Secondary highway
66,124
32,984
30,883
68,225
#847
610,965
20,939
4,907
626,997
Special road project
578,222
401,930
25,907
954,245
Hard surface
266,448
9,573
2,454
273,567
Bow Slope fire truck
189,997
--
23,772
166,225
Secondary highway
66,032
--
66,032
--
#862
239,903
9,573
2,454
247,022
Rosemary fire truck
136,418
--
31,592
104,826
Public transportation
173,279
9,573
97,915
84,937
Agriculture Service
Board
22,364
3,521
6,007
19,878
Office renovations
175,840
8,207
94,541
89,506
Purchase of gravel
114,130
4,559
1,178
117,511
Planning
103,454
3,769
9,794
97,429
Road work
282,812
196,736
--
479,548
Fire truck
66,124
32,984
30,883
68,225
Gravel crushing
55,719
2,079
442
57,356
Public works - other
34,475
35,639
5,007
65,107
Shop
14,061
628
147
14,542
Patricia and Duchess
fire hall
66,032
--
66,032
--
Economic Development
33,076
44,950
294
77,732
Garbage pits
--
8,786
--
8,786
19,120,249
10,929,657
6,899,551
23,150,355
14
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
13. Reserves (continued):
Transfers Transfers Ending
Opening in out balance
Operating:
Brought forward $ 19,120,249
$ 10,929,657
$ 6,899,551
$ 23,150,355
Municipal Sustainability
--
46,822
--
Disaster and emergency services
Initiative
--
2,103,798
--
2,103,798
Water and waste water
--
4,596,549
119,870
4,476,679
Rolling Hills fire truck
--
209,950
--
209,950
19,120,249
17,839,954
7,019,421
29,940,782
Capital:
Machinery and
equipment
1,221,452
2,023,963
319,582
2,925,833
Future expenditures
- general administration
2,041,588
272,025
118,671
2,194,942
Vehicle replacement
193,523
162,783
24,356
331,950
Rolling Hills water and
sewer
23,361
9,927
--
33,288
Scandia water reservoir
37,214
7,494
24,280
20,428
Lake Newell road
prepaid
3,219
--
348
2,871
Patricia sewer
17,715
11,785
--
29,500
Lake Newell sewer
5,000
5,000
--
10,000
Parks
--
8,815
--
8,815
3,543,072
2,501,792
487,237
5,557,627
$ 22,663,321 $ 20,341,746 $ 7,506,658 $ 35,498,409
14. Equity in capital assets:
Budget 2007 2006
(Unaudited)
Acquisition of capital assets:
Administration
$ 150,684
$ 85,247
$ •-
Corporate safety
--
46,822
--
Disaster and emergency services
33,020
33,891
--
Roads, streets, walks, and lighting
1,530,932
1,908,366
2,673,609
Water and waste water
--
--
78,897
Community and agricultural services
253,215
314,112
245,020
1,967,851
2,388,438
2,997,526
Disposal of capital assets (cost):
Administration -- (8,426) (14,459)
Fire and by-law enforcement -- (65,554) --
Roads, streets, walks and lighting (581,400) (3,134,936) (3,359,276)
Community and agricultural services (15,000) (51,628) (198,233)
(596,400) (3,260,544) (3,571,969)
15
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
14. Equity in capital assets (continued):
Taxation:
Real property taxes
Budget
2007
2006
Capital financing:
Capital debt issued
Capital debt repaid from operating
(Unaudited)
$ --
179,145
--
179,146
$ --
177,552
Government grants in place of property
179,145
179,146
177,552
Change in equity balance
Equity balance, beginning of year
1,550,596
18,934,724
(692,960)
18,934,724
(396,891)
19,331,615
Equity balance, end of year
$ 20,485,320
$ 18,241,764
$ 18,934,724
Balance consists of:
Capital assets (note 7)
Long-term debt — capital (note 9)
$ 19,010,142
(768,379)
$ 19,882,249
(947,525)
Alberta School Foundation Fund
11,679,657
$ 18,241,764
$ 18,934,724
15. Net municipal property taxes:
432,248
432,248
427,640
Budget
2007
2006
(Unaudited)
Taxation:
Real property taxes
$ 10,237,178
$ 10,227,227
$ 9,335,222
Linear property taxes
23,347,002
23,383,325
20,340,415
Government grants in place of property
taxes
255,651
254,942
260,561
33,839,831
33,865,494
29,936,198
Requisitions:
Alberta School Foundation Fund
11,679,657
11,805,024
11,104,805
Newell Foundation
432,248
432,248
427,640
12,111,905
12,237,272
11,532,445
$ 21,727,926 $ 21,628,222 $ 18,403,753
16
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
16. Government transfers:
17. Expenditures by object:
Budget 2007 2006
(Unaudited)
Operating:
Salaries, wages and benefits
Budget
2007
2006
(Unaudited)
10,522,325
11,853,137
Provincial transfers:
Materials, goods, supplies and utilities
2,617,377
2,086,553
Shared -cost agreements and grants $
1,084,708
$ 1,250,133
$ 1,367,746
Shared -cost agreements and grants — capital
2,864,638
7,034,611
2,599,267
880
3,949,346
8,284,744
3,967,013
Federal transfers:
Other expenditures
89,820
200,832
Shared — cost agreements and grants — capital
75,000
54,457
--
Local government transfers:
Shared -cost agreements and grants
7,054
11,177
6,877
$
4,031,400
$ 8,350,378
$ 3,973,890
17. Expenditures by object:
Budget 2007 2006
(Unaudited)
Operating:
Salaries, wages and benefits
$ 5,345,165 $
5,039,030 $
4,194,829
Contracted and general services
10,522,325
11,853,137
12,459,800
Materials, goods, supplies and utilities
2,617,377
2,086,553
2,010,140
Transfers to organizations
1,380,345
1,312,706
1,110,313
Bank charges and short-term interest
700
596
880
Interest on long-term debt
470,838
464,371
498,736
Other expenditures
89,820
200,832
190,910
20,426,570
20,957,225
20,465,608
Capital:
Purchase of capital assets 2,017,851 2,388,438 2,997,525
$ 22,444,421 $ 23,345,663 $ 23,463,133
17
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
18. Trust funds:
2007 2006
Scholarship funds:
Land of Promise Scholarship $ 8,985 $ 8,982
John W. Smidstrup Scholarship 64,323 64,136
$ 73,308 $ 73,118
The above trust funds are not recorded in the financial statements (note 1(a)).
19. 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:
2007 2006
Benefits &
Salary (1) Allowances (2) Total Total
Council:
Reeve
$
5,500
$
-
$ 5,500
$ 5,400
Division 1
26,510
4,063
30,573
26,182
Division 2
28,355
1,127
29,482
23,633
Division 3
31,538
4,290
35,828
30,704
Division 4
27,200
3,428
30,628
30,814
Division 5
20,304
1,449
21,753
20,223
Division 6
22,783
3,879
26,662
23,888
Division 7
22,858
3,899
26,757
23,256
Division 8
29,018
2,341
31,359
26,857
Division 9
27,585
2,191
29,776
28,782
Division 10
25,261
2,456
27,717
25,174
$
266,912
$
29,123
$ 296,035
$ 264,913
Chief Administrative Officer
$
122,837
$
23,156
$ 145,993
$ 132,562
Designated officers
$
93,623
$
18,679
$ 112,302
$ 227,551
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
Year ended December 31, 2007
20. Debt limits:
Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by
Alberta Regulation 255100 for the County be disclosed as follows:
2007 2006
Total debt limit $ 43,905,657 $ 39,333,509
Total debt 8,024,393 8,675,150
$ 35,881,264 $ 30,658,359
2007 2006
Debt servicing limit $ 7,317,610 $ 6,555,585
Debt servicing 1,121,594 1,121,594
$ 6,196,016 $ 5,433,991
The debt limit is calculated at 1.5 times revenue of the County (as defined in Alberta Regulation
255100) 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.
21. Contingent liability:
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.
19
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2007
22. 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 instruments. Unless otherwise noted, the fair value of these financial instruments
approximate their carrying values.
22. Comparative figures:
Where necessary the comparative figures for the 2006 year have been reclassified to conform
with 2007 financial statement presentation.
24. Approval of financial statements:
These financial statements were approved by Council and Management.
20