HomeMy WebLinkAbout2009-12-31 Year End Audited Financial Satements Consolidated Financial Statements of
COUNTY OF NEWELL NO.4
Year ended December 31, 2009
Management's Responsibility for the Consolidated
Financial Statements
The accompanying consolidated financial statements of County of Newell No. 4 (the "County") are the
responsibility of the County's management and have been prepared in compliance with legislation,
and in accordance with generally accepted accounting principles for local governments established by
the Public Sector Accounting Board of The Canadian Institute of Chartered Accountants. A summary
of the significant accounting policies are described in Note 1 to the consolidated financial statements.
The preparation of financial statements necessarily involves the use of estimates based on
management's judgment, particularly when transactions affecting the current accounting period
cannot be finalized with certainty until future periods.
The County's management maintains a system of internal controls designed to provide reasonable
assurance that assets are safeguarded, transactions are properly authorized and recorded in
compliance with legislative and regulatory requirements, and reliable financial information is available
on a timely basis for preparation of the consolidated financial statements. These systems are
monitored and evaluated by management.
Council meets with management and the external auditors to review the consolidated financial
statements and discuss any significant financial reporting or internal control matters prior to their
approval of the consolidated financial statements.
The consolidated financial statements have been audited by KPMG LLP, independent external
auditors appointed by the County. The accompanying Auditors' Report outlines their responsibilities,
the scope of their examination and their opinion on the County's consolidated financial statements.
Kevin Stephenson
Chief Administrative Officer
KPMG
KPMG LLP Telephone (403) 380 -5700
Chartered Accountants Fax (403) 380 -5760
500 Lethbridge Centre Tower Internet www.kpmg.ca
400 4th Avenue South
Lethbridge AB T1J 4E1
Canada
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, 2009 and the consolidated statements of financial activities, changes in net financial
assets and 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, 2009 and the results of its financial activities,
changes in net financial assets and its cash flows for the year then ended in accordance with
Canadian generally accepted accounting principles.
zhP
Chartered Accountants
Lethbridge, Canada
February 25, 2010
KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG International, a Swiss cooperative.
KPMG Canada provides services to KPMG LLP
COUNTY OF NEWELL NO.4
Consolidated Statement of Financial Position
December 31, 2009, with comparative figures for 2008
2009 2008
(Restated
note 2)
Financial assets:
Cash and temporary investments (note 3) 48,943,069 43,684,075
Taxes and grants in place of taxes receivable (note 4) 563,831 531,793
Trade and other receivables 9,230,081 3,257,618
Land held for resale 31,881 31,881
Investments (note 5) 4,059,851 7,020,845
Notes receivable (note 6) 7,025,877 7,751,709
Other financial assets 13,815 4,181
69,868,405 62,282,102
Financial liabilities:
Accounts payable and accrued liabilities 6,983,652 2,075,169
Employee benefit obligations (note 8) 260,097 238,627
Unearned revenue 49,963 44,769
Long -term debt operating (note 9) 6,233,550 6,758,464
Long -term debt capital (note 10) 504,421 579,840
Provision for landfill closure and post closure costs (note 11) 339,849 339,849
Provision for gravel pit closure and post closure costs (note 11) 293,701 295,000
Deposit liabilities (note 3) 180,246 254,330
14, 845, 479 10, 586, 048
Net financial assets 55,022,926 51,696,054
Non- financial assets:
Prepaid expenses 150,464 133,191
Tangible Capital Assets (note 7) 73,568,974 48,764,108
Inventory for consumption 945,222 1,234,303
74,664,660 50,131,602
Contingent liabilities (note 20)
Accumulated surplus (note 12) $129,687,586 $101,827,656
The accompanying notes are an integral part of these consolidated financial statements.
1
COUNTY OF NEWELL NO. 4
Consolidated Statement of Financial Activities
Year ended December 31, 2009, with comparative figures for 2008
Budget 2009 2008
(Unaudited) (Restated
note 2)
Revenues:
Net municipal property taxes (note 13) 27,512,018 27,529,024 25,368,889
Special levies 724,166 725,363 811,565
User fees and sale of goods 694,981 800,859 685,892
Government transfers (note 14) 1,523,975 1,733,210 2,141,579
Penalties and cost of taxes 80,500 112,218 76,391
Investment income 1,000,706 1,448,226 2,388,286
Licenses and permits 35,800 27,125 31,495
Other revenue 120,850 161,852 122,375
Loss on disposal of tangible capital assets (39,478) (30,830)
31,692,996 32,498,399 31,595,642
Expenses (note 15):
Legislative 477,450 419,156 411,868
Administration 2,046,275 1,846,899 1,735,325
General 1,626,266 2,350,381 3,285,615
Corporate safety services 279,795 216,334 197,892
Fire and by -law enforcement 1,063,858 953,991 926,748
Disaster and emergency services 15,125 12,314 91,733
Roads, streets, walks and lighting 38,425,266 10,142,187 8,503,831
Water and waste water 14,437,670 13,464,843 2,304,183
Waste management 234,309 234,308 233,743
Family and community support 43,406 41,217 40,880
Municipal planning 257,974 216,496 168,179
Community and agricultural services 1,106,414 1,141,585 1,308,869
Subdivision land and development 325,965 166,050 15,700
Recreation and parks 667,152 701,270 674,439
Culture and library 124,721 137,222 123,720
Other (9,634) 51,649
61,131,646 32,034,619 20,074,374
Excess (deficiency) of revenues over
expenses before the undernoted (29,438,650) 463,780 11,521,268
Other:
Contributed assets 70,000 624,420 710,670
Government transfers (note 14) 39,748,938 26,771,730 8,426,937
Excess of revenues over expenses 10,380,288 27,859,930 20,658,875
Accumulated surplus, beginning of year 101,614,483 101,827,656 81,168,781
Accumulated surplus, end of year $111,994,771 $129,687,586 $101,827,656
The accompanying notes are an integral part of these consolidated financial statements.
2
COUNTY OF NEWELL NO.4
Consolidated Statement of Change in Net Financial Assets
December 31, 2009, with comparative figures for 2008
Budget 2009 2008
(Unaudited) (Restated
note 2)
Excess of revenues over expenses $10,380,288 27,859,930 20,658,875
Acquisition of tangible capital assets (27,210,062) (4,345,954)
Contributed tangible capital assets (70,000) (624,420) (710,670)
Proceeds on disposal of tangible capital assets 105,369 726,319
Amortization of tangible capital assets 2,884,769 1,680,964
Loss on disposal of tangible capital assets 39,478 30,830
10,310,288 3,055,064 18,040,364
Use (acquisition) of inventories of supplies 289,081 (80,845)
Acquisition of prepaid expenses (17,273) (7,813)
Change in net financial assets 10,310,288 3,326,872 17,951,706
Net financial assets, beginning of year 51,696,054 51,696,054 33,744,348
Net financial assets, end of year $62,006,342 55,022,926 51,696,054
The accompanying notes are an integral part of these consolidated financial statements.
3
COUNTY OF NEWELL NO.4
Consolidated Statement of Cash Flows
Year ended December 31, 2009, with comparative figures for 2008
2009 2008
(Restated
note 2)
Cash provided by (used in):
Operations:
Excess of revenues over expenses 27,859,930 20,658,875
Items not involving cash:
Amortization 2,884,769 1,680,964
Contributed assets (624,420) (710,670)
Loss on disposal of tangible capital assets 39,478 30,830
Change in non -cash financial assets and liabilities:
Taxes and grants in place of taxes receivable (32,038) (152,743)
Trade and other receivables (5,972,463) 1,481,387
Other financial assets (9,634) 1,788
Prepaid expenses (17,273) (7,814)
Inventory for consumption 289,081 (80,845)
Accounts payable and accrued liabilities 4,908,483 (4,260,908)
Employee benefit obligations 21,470 12,640
Unearned revenue 5,194 (2,719)
Provision for landfill and gravel pit closure and
post closure costs (1,299) 55,716
29,351,278 18, 706, 501
Capital activities:
Proceeds on disposal of tangible capital assets 105,369 726,319
Cash used to acquire tangible capital assets (27,210,062) (4,345,953)
(27,104,693) (3,619,634)
Investing activities:
Decrease in investments 2,960,994 3,709,500
Advances on notes receivable (30,050)
Payments received on notes receivable 725,832 682,398
Division 7 fire shortfall (7,000)
3,686,826 4,354,848
Financing activities:
Repayment of long -term debt:
operating (524,914) (497,550)
capital (75,419) (188,539)
Increase (decrease) in deposit liabilities (74,084) 134,417
(674,417) (551,672)
Increase in cash 5,258,994 18,890,043
Cash and cash equivalents, beginning of year 43,684,075 24,794,032
Cash and cash equivalents, end of year 48,943,069 43,684,075
The accompanying notes are an integral part of these consolidated financial statements.
4
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
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 expenses,
changes in net financial assets and cash flows of the County, which comprises of all the
organizations that are owned or controlled by the County and are, therefore accountable to
the Council for the administration of their financial affairs and resources.
All significant inter department transactions and balances are eliminated on consolidation.
Taxes levied also include requisitions for educational, health care, social and other external
organizations that are not part of the County.
The statements exclude trust assets that are administered for the benefit of external parties.
(b) Basis of accounting:
The financial statements are prepared using the accrual basis of accounting. The accrual
basis of accounting records revenue as it is earned and measurable. Expenses are
recognized as they are incurred and measurable based upon receipt of goods or services
and /or the legal obligation to pay.
Funds from external parties and earnings thereon restricted by agreement or legislation are
accounted for as deferred revenue until used for the purpose specified.
(c) 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.
(d) 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.
5
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
1. Significant accounting policies (continued):
(e) Inventories:
Land held for resale is recorded at the lower of cost and net realizable value. Cost includes
costs for land acquisition and improvements required to prepare the land for servicing such as
clearing, stripping, and leveling charges. Related development costs incurred to provide
infrastructure such as water and waste water services, roads, sidewalks and street lighting
are recorded as capital assets under their respective function.
(f) 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.
(g) 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.
(h) 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.
(i) Non financial assets:
Non financial assets are not available to discharge existing liabilities and are held for use in
the provision of services. They have useful lives extending beyond the current year and are
not intended for sale in the normal course of operations.
6
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
1. Significant accounting policies (continued):
(i) Non financial assets (continued):
(i) Tangible capital assets:
Tangible capital assets are recorded at cost which includes all amounts that are directly
attributable to acquisition, construction, development or betterment of the asset. The cost,
less residual value, of the tangible capital assets is amortized on a straight -line basis over
the estimated useful life as follows:
Years
Land Improvements 15-45
Buildings 25 -70
Engineered structures 15 -75
Machinery and equipment 5-40
Vehicles 5 -14
Assets under construction are not amortized until the asset is available for productive use.
(ii) Contributions of tangible capital assets:
Tangible capital assets received as contributions are recorded at fair value at the date of
receipt and recorded as revenue.
(iii) Inventories
Inventories of materials and supplies held for consumption are recorded at the lower of
cost and replacement cost with cost determined by the average cost method.
(iv) Cultural and historical tangible capital assets:
Works of art for display are not recorded as tangible capital assets but are disclosed.
(j) Use of estimates:
The preparation of the financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates
of the financial statements and the reported amounts of revenues and expenses during the
reporting periods.
The County's implementation of the Public Sector Accounting Handbook PS3150 has
required management to make estimates of historical cost where information was not
available, and useful lives of tangible capital assets.
Contributions of tangible capital assets are recorded at estimated fair value at the date of
receipt.
Actual results could differ from those estimates.
7
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
2. Change in accounting policies:
The County has implemented Public Sector Accounting Board "PSAB sections PS1200
Financial Statement Presentation and PS3150 Tangible Capital Assets. PS1200 establishes
general reporting principles and standards for the disclosure of information in government
financial statements. PS3150 requires governments to record and amortize their tangible capital
assets in their financial statements. In prior years, tangible capital asset additions were expensed
in the year of acquisition or construction.
Methods used for determining the cost of each major category of tangible capital assets
The financial information recorded includes the actual or estimated historical cost of the tangible
capital assets. When historical cost records were not available, other methods were used to
estimate the costs and accumulated amortization of the assets. The County applied a consistent
method of estimating the replacement or reproduction cost of the tangible capital assets for which
it did not have historical cost records, except in circumstances where it could be demonstrated
that a different method would provide a more accurate estimate of the cost of a particular type of
tangible capital asset. After defining replacement or reproduction cost, the Book Value Calculator
was used as a resource for determining appropriate indices in order to deflate the replacement or
reproduction cost to an estimated historical cost at the year of acquisition.
This change has been applied retrospectively and prior periods have been restated. This change
in accounting policy has changed amounts reported in the prior period as follows:
Accumulated surplus at January 1, 2008:
Operating fund balance 515,524
Capital fund balance (222,371)
Reserves 35,498,409
Equity in capital assets 18,241,764
Accumulated surplus, as previously reported 54,033,326
Net book value of tangible capital assets recorded 27,135,455
Accumulated surplus, as restated $81,168,781
Annual surplus for 2008:
Excess of revenues, as previously reported $18,040,365
Assets capitalized but previously expensed 4,345,953
Amortization expense not previously recorded (1,680,964)
Loss on disposal of tangible capital assets (30,830)
Proceeds on disposal previously reported as revenue (726,319)
Contributed assets 710,670
Annual surplus, as restated $20,658,875
8
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
3. Cash and temporary investments:
2009 2008
Cash 16,930,583 2,721,298
Temporary investments (effective average yield 2.2 32,012,486 40,962,777
48,943,069 43,684,075
Included in cash are amounts aggregating $180,246 (2008 $254,330) not available for current
use.
2009 2008
Tax sale surplus 14,235 13,652
Public reserve 166,011 240,678
180,246 254,330
4. Taxes and grants in place of taxes receivable:
2009 2008
Current year 279,540 297,544
Arrears 436,631 386,589
716,171 684,133
Allowance for uncollectible taxes (152,340) (152,340)
563,831 531,793
5. Investments:
Long -term investments consist of fixed income securities with an effective average yield of 3.48%
and an aggregate market value of $4,059,851 (2008 $7,020,845).
9
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
6. Notes receivable:
2009 2008
Newell Foundation
This note is repayable in annual installments of $896,630
including interest at 5.5 maturing in 2018. 6,233,549 6,758,464
City of Brooks
This note is repayable in annual installments of $131,082
including interest at 5.25 maturing in 2013. 462,122 563,614
Bow Slope Fire Division
This note is repayable in annual installments of $32,113
including interest at 4.39 maturing in 2013. 115,503 141,409
Rosemary Fire Division
This note is repayable in annual installments of $38,583
including interest at 5.125 maturing in 2010. 36,702 71,615
Rolling Hills Fire division
This note is repayable in annual installments of $39,585
including interest at 3.954 maturing in 2014. 178,001 209,607
Division 7 Fire 2008 shortfall 7,000
7,025,877 7,751,709
7. Tangible capital assets:
Cost 2008 Additions Disposals 2009
Land 2,343,853 554,170 (12) 2,898,011
Land improvements 118,163 118,163
Buildings 758,732 271,159 1,029,891
Engineering structures 68,225,740 16,255,273 (591,882) 83,889,131
Machinery and equipment 8,283,624 1,371,819 (48,081) 9,607,362
Vehicles 3,156,851 583,833 (425,180) 3,315,504
Work in progress 1,714,835 8,798,228 10,513,063
Total 84,601,798 $27,834,482 (1,065,155) $111,371,125
Accumulated Amortization
amortization 2008 Disposals expense 2009
Land improvements 85,967 3,549 89,516
Buildings 358,063 17,013 375,076
Engineering structures 31,833,621 (555,868) 1,856,287 33,134,040
Machinery and equipment 2,177,837 (27,654) 719,537 2,869,720
Vehicles 1,382,202 (336,786) 288,383 1,333,799
Total 35,837,690 (920,308) 2,884,769 37,802,151
10
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
7. Tangible capital assets (continued):
Net book value 2009 2008
Land 2,898,011 2,343,854
Land improvements 28,647 32,196
Buildings 654,815 400,669
Engineering structures 50,755,091 36,392,119
Machinery and equipment 6,737,642 6,105,787
Vehicles 1,981,705 1,774,648
Work in progress 10,513,063 1,714,835
Total 73,568,974 48,764,108
Contributed assets are recognized at fair market value at the date of contribution. The value of
contributed assets, comprised of land and engineering structures, received during the year is
$624,420 (2008 $710,670).
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 operating:
2009 2008
Debenture supported with notes receivable 6,233,550 6,758,464
Principal and interest repayments are due as follows:
Principal Interest Total
2010 553,785 342,845 896,630
2011 584,243 312,387 896,630
2012 616,377 280,253 896,630
2013 650,277 246,353 896,630
2014 686,043 210,587 896,630
Thereafter 3,142,825 443,697 3,586,522
6,233,550 1,836,122 8,069,672
11
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
9. Long -term debt operating (continued):
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 County of Newell No. 4 at large.
Interest on long -term debt amounted to $364,518 (2008 $393,825).
The County's total cash payments for interest in 2009 were $371,716 (2008 $399,081).
10. Long -term debt capital:
2009 2008
Tax supported debentures 504,421 579,840
Principal and interest repayments are due as follows:
Principal Interest Total
2010 79,271 22,659 101,930
2011 75,459 18,578 94,037
2012 78,860 15,177 94,037
2013 82,418 11,619 94,037
2014 86,139 7,898 94,037
Thereafter 102,274 5,329 107,603
504,421 81,260 585,681
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
2010 through 2018. The average annual interest rate is 7.7% for 2009 (2008 7.7 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 County of Newell No. 4 at large.
Interest on long -term debt amounted to $26,511 (2008 $36,425).
The County's total cash payments for interest in 2009 were $26,511 (2008 $36,425).
12
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
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 $293,701 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.
12. Accumulated surplus:
Equity in
tangible
Unrestricted capital Total Total
net assets assets (1) Reserves (2) 2009 2008
Beginning
balance 243,294 $48,184,268 $53,400,094 $101,827,656 81,168,781
Excess of revenues
over expenses 27,859,930 27,859,930 20,658,875
Transfer to
reserves (43,073,954) 43,073,954
Transfers from
reserves 39,851,015 (39,851,015)
Amortization of
tangible capital
assets 2,884,769 (2,884,769)
Net book value
of assets disposed 144,847 (144,847)
Capital assets
internally
funded (27,210,062) 27,210,062
Contributed capital
assets (624,420) 624,420
Principal payment
on capital debt (75,419) 75,419
Total $73,064,553 $56,623,033 $129,687,586 $101,827,656
13
COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
12. Accumulated surplus (continued):
(1) Equity in tangible capital assets:
2009 2008
(Restated
note 2)
Tangible capital assets 111,371,124 84,601,798
Accumulated depreciation (37,802,150) (35,837,690)
Long -term debt (note 10) (504,421) (579,840)
73,064,553 48,184,268
(2) Reserves are comprised of funds internally restricted as follows:
2009 2008
Operating:
Annual Paving Tax 15,789,210 17,119,006
Municipal surplus 8,233,603 7,849,832
Debt reduction 1,509,116 1,475,324
Future expenditures 1,634,408 1,500,666
Brooks Recreation Centre 462,122 563,614
Secondary highway #847 679,185 660,377
Special road project 1,292,168 789,237
Hard surface 295,862 290,257
Bow Slope fire truck 115,503 141,409
Secondary highway #862 273,116 263,710
Rosemary fire truck 36,702 71,615
Public transportation 115,030 105,625
Agriculture Service Board 19,120 20,501
Office renovations 152,323 100,200
Purchase of gravel 128,746 125,307
Planning 105,429 102,833
Road work 111,120 689,837
Fire truck 92,406 41,126
Gravel crushing 62,672 60,958
Public works other 34,885 34,020
Shop 15,874 15,443
Economic Development 115,426 63,696
Municipal Infrastructure Program 1,010,926
Reg. H2O Supply System Reserve 3,702,839 1,711,483
34,976,865 34,807,002
14
COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
12. Accumulated surplus (continued):
(2) Reserves (continued):
2009 2008
Operating:
Brought forward 34,976,865 34,807,002
Municipal Sustainability
Initiative 4,147,145 4,057,423
Water and waste
water 8,713,787 8,430,817
Rolling Hills fire truck 178,001 209,607
48,015,798 47,504,849
Capital:
Machinery and
equipment 2,105,199 2,970,446
Future expenditures
general administration 5,972,528 2,378,753
Vehicle replacement 442,293 451,730
Rolling Hills water and
sewer 33,288 33,288
Scandia water reservoir 20,428 20,428
Patricia sewer 23,500 29,500
Lake Newell sewer 10,000 10,000
Parks 1,100
8,607,236 5,895,245
56,623,034 53,400,094
13. Net municipal property taxes:
Budget 2009 2008
(Unaudited)
Taxation:
Real property taxes 12,689,274 12,638,657 12,394,564
Linear property taxes 27,140,020 27,206,532 25,644,797
Government grants in place of property
taxes 285,745 286,551 38,173
40,115,039 40,131,740 38,077,534
Requisitions:
Alberta School Foundation Fund 12,018,493 12,018,189 12,272,686
Newell Foundation 584,528 584,527 435,959
12, 603, 021 12, 602, 716 12, 708, 645
27,512,018 27,529,024 25,368,889
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COUNTY OF NEWELL NO. 4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
14. Government transfers:
Budget 2009 2008
(Unaudited)
Transfers for operating:
Provincial government 1,370,523 1,618,698 2,007,277
Federal government 6,500 5,598 29,660
Local government 146,952 108,914 104,642
1,523,975 1,733,210 2,141,579
Transfers for capital:
Provincial government 35,911,753 23,093,670 7,912,046
Local government 3,837,185 3,678,060 514,891
39,748,938 26,771,730 8,426,937
41,272,913 28,504,940 10,568,516
15. Expenditures by object:
Budget 2009 2008
(Unaudited)
Salaries, wages and benefits 6,063,926 5,499,995 5,395,633
Contracted and general services 35,324,412 4,850,898 4,314,291
Materials, goods, supplies and utilities 2,552,776 2,009,729 2,217,314
Transfers to organizations 16,642,703 16,327,408 5,932,034
Bank charges and short-term interest 700 528 563
Interest on long -term debt 398,229 391,030 428,683
Other expenditures 148,900 70,262 104,892
Amortization 2,884,769 1,680,964
61,131,646 32,034,619 20,074,374
16. Trust funds:
2009 2008
Scholarship funds:
Land of Promise Scholarship 8,951 8,964
John W. Smidstrup Scholarship 64,125
8,951 73,089
The above trust funds are not recorded in the financial statements (note 1(a)).
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COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
17. 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:
2009 2008
Benefits
Salary (1) Allowances (2) Total Total
Council:
Reeve 6,000 6,000 6,000
Division 1 23,250 3,782 27,032 33,764
Division 2 30,840 593 31,433 29,467
Division 3 30,060 4,086 34,146 35,845
Division 4 23,625 1,126 24,751 24,624
Division 5 25,620 3,888 29,508 27,619
Division 6 26,535 3,929 30,464 26,467
Division 7 24,870 3,854 28,724 30,957
Division 8 27,204 1,285 28,489 26,487
Division 9 34,260 1,881 36,141 34,748
Division 10 30,810 2,228 33,038 31,407
283,074 26,652 309,726 307,385
Chief Administrative Officer 147,697 31,508 179,205 166,375
Designated officers (1) 90,477 18,347 108,824 100,475
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, 2009
18. 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:
2009 2008
Total debt limit 48,747,599 48,529,187
Total debt 6,737,971 7,338,304
42,009,628 41,190,883
2009 2008
Debt servicing limit 8,124,600 8,088,198
Debt servicing 998,560 998,560
7,126,040 7,089,638
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.
19. Local authorities pension plan:
The County participates in a multi employer defined benefit pension plan. This plan is accounted
for as a defined contribution plan.
Employees of the County participate in the Local Authorities Pension Plan (LAPP), which is one of
the plans covered by the Public Sector Pension Plans Act. The LAPP serves about 189,149
people and about 411 employers. The LAPP is financed by employer and employee contributions
and investment earnings of the LAPP fund.
Contributions for current service are recorded as expenditures in the year in which they become
due. The County is required to make current service contributions to the Plan of 8.46% of
pensionable earnings up to the year's maximum pensionable earnings under the Canada Pension
Plan and 11.66% on pensionable earnings above this amount. Employees of the County are
required to make current service contributions of 7.46% of pensionable salary up to the year's
maximum pensionable salary and 10.66% on pensionable salary above this amount.
Total current service contributions by the County to the LAPP in 2009 were $308,975 (2008
$228,191). Total current service contributions by the employees of the County to the LAPP in
2009 were $276,072 (2008 $201,616).
At December 31, 2008, the LAPP disclosed an actuarial deficiency of $4,414 million (2007
$1,183.3 million).
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COUNTY OF NEWELL NO.4
Notes to Consolidated Financial Statements
Year ended December 31, 2009
20. Contingent liabilities:
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.
The County has been named defendant in a legal action claiming damages in the amount of
$160,000. In the opinion of management this matter is without substantial merit and no provision
has been made in the accounts.
21. Financial instruments:
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 values of these
financial instruments approximate their carrying values.
22. Budget data:
The unaudited budget data presented in these consolidated financial statements is based upon
the 2009 operating and capital budgets approved by Council on December 23, 2008 and any
subsequent budget adjustments. Amortization was not contemplated on development of the
budget and, as such, has not been included.
23. Approval of financial statements:
These financial statements were approved by Council and Management.
24. Comparative figures:
Certain 2008 comparative figures have been reclassified to conform with the financial statement
presentation adopted in the current year.
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