HomeMy WebLinkAbout2008-12-31 Year End Audited Financial Satements
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2008
20. Debt limits:
Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by
Alberta Regulation 255/00 for the County be disclosed as follows:
2008 2007
Total debt limit $ 48,529,187 $ 43,905,657
Total debt 7,338,304 8,024,393
$ 41,190,883 $ 35,881,264
2008 2007
Debt servicing limit $ 8,088,198 $ 7,317,610
Debt servicing 998,560 1,121,594
$ 7,089,638 $ 6,196,016
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.
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.
22. Financial instruments:
The County of Newell No. 4s financial instruments consist of cash and temporary investments,
receivables, accounts payable and accrued liabilities, and long-term debt. It is managements
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.
23. Approval of financial statements:
These financial statements were approved by Council and Management.
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