HomeMy WebLinkAbout2020-04-23 2019 Annual ReportFOR THE YEAR ENDING DECEMBER 31, 2019
COUNTY OF NEWELL, ALBERTA, CANADA
2019 ANNUAL FINANCIAL REPORT
County of Newell, Alberta, Canada2019 ANNUAL FINANCIAL REPORT
For the fiscal period ending December 31, 2019
Produced by the Finance Department in cooperation with all County departments
For information on programs and services, or to obtain a copy of this document, contact:
ADMINISTRATIONTelephone: 403-362-3266
E-Mail: administration@newellmail.ca
The 2019 Annual Financial Report is available online at www.countyofnewell.ab.ca
Cover Photo by D. Wiebe
Page 2
Photo by K. Arigan
Page 3County of Newell - 2019 Annual Financial Report
TABLE OF CONTENTS
SECTION 1
Introduction
Vision, Mission, & Guiding Principles 7
County Profile 8
County Council 9
Organizational Chart 10
GFOA Canadian Award for Financial Reporting 11
Message from the Reeve 12
Report from the Manager of Finance 13
Agricultural Services Report 26
Municipal Services Report 32
Planning & Development Report 36
SECTION 2
Consolidated Financial Statements
Management’s Responsibility for the Consolidated Financial Statements 43
Independent Auditors’ Report 44
Consolidated Statement of Financial Position 46
Consolidated Statement of Financial Activities 47
Consolidated Statement of Change in Net Financial Assets 48
Consolidated Statement of Cash Flows 49
Notes to Consolidated Financial Statements 50
Schedule of Segmented Disclosures 64
SECTION 3Financial & Statistical Section
Demographics & Other Statistics 69
Expenses by Object 70
Expenses by Function 71
Revenues by Source 72
Page 4
Photo by D. Wiebe
Page 5County of Newell - 2019 Annual Financial Report
section 1
INTRODUCTION
Page 6
Photo by S. Plett
Page 7County of Newell - 2019 Annual Financial Report
VISION & MISSION STATEMENT
VISION STATEMENT
To encourage and support sustainable growth and quality of life.
MISSION STATEMENT
The County of Newell
through leadership and policy
provides services, structure and stability.
GUIDING PRINCIPLES
Seeking cooperation with individuals, governments, and organizations
Planning for the future growth and development of the municipality
Striving for the long-term financial stability of the municipality
Supporting the development and sustainability of a strong infrastructure
Providing services in a consistent and efficient manner
Preserving land for agricultural use
Promoting open communication between staff, Council and the public
County of Newell - 2019 Annual Financial ReportPage 8
COUNTY PROFILE
The County of Newell is a rural municipality located
central to Calgary, Medicine Hat and Lethbridge
with less than 190 kilometers of separation
between each city. The County is a growing
transportation hub with the TransCanada Highway
#1 and Highway #36 intersecting within our
boundaries. CP Rail’s mainline runs through the
County, on its track from Montreal to Vancouver.
Our geographical position provides ease of access
to the oil sands to the north and the United States
to the south, creating an ideal trade location for
businesses.
The population of the Newell region, inclusive
of our urban counterparts, is over 24,000. The
largest urban communities in the region are the
City of Brooks and the Town of Bassano. The
County has a positive working relationship with
our urban neighbors, which improves the quality
of services provided to all of our residents.
The County is home to the Eastern Irrigation
District (EID) which provides an extensive water
supply, storage, and drainage network throughout
the region. Water diverted from the Bow River at
the Bassano Dam provides for irrigated agriculture,
industrial, household and livestock use, as well as
many recreational opportunities and enhanced
environmental conditions.
The County has a dynamic and diverse economy
driven by three pillars: Agriculture; Oil and Gas;
and Tourism. There are approximately 500
primary agricultural producers in the County, and
approximately 1,500 non-agricultural business
enterprises within the County and its municipalities.
The region boasts extraordinary crop quality with
over 300,000 acres of irrigated farmland, 600,000
acres of cultivated dry land farming and 600,000
acres of native and improved rangeland. With a
younger work force and average farm receipts in
the range of $100,000 to $249,999, the region is
home to some of the most profitable farmers in
Alberta.
The County has one of Alberta’s most active
natural gas fields. There are roughly 30,000
wells in the County, which accounts for half of all
wells in Alberta, and 37% of all wells in Canada.
Approximately 170 production and service
companies employ 4,000 to 5,000 people in the
energy sector in the region.
Key tourism anchors include Lake Newell - one
of Canada’s largest man-made lakes, Dinosaur
Provincial Park - a UNESCO World Heritage
Site, and recreation activity as diverse as golfing,
boating, camping, fishing, hunting, and wildlife
watching.
Population (2016): 7,524 Increase in population (2011 to 2016): 5.4%Median Age: 38
Unemployment rate: 7.1%Median Household Income (2015): $90,880 Number of Farms: 668
2019 Final Budget 5
Agriculture
Oil & Gas
Tourism
COUNTY PROFILE
Population (2016): 7,524 Increase in population (2011 to 2016): 5.4% Median Age: 38
Unemployment rate: 7.1% Median Household Income (2015): $90,880 Number of Farms: 668
The County of Newell is a rural municipality located
central to Calgary, Medicine Hat and Lethbridge with
less than 190 kilometers of separation between each
city. The County is a growing transportation hub with
the TransCanada Highway #1 and Highway #36
intersecting within our boundaries. CP Rail’s
mainline runs through the County, on its track from
Montreal to Vancouver. Our geographical position
provides ease of access to the oil sands to the north
and the United States to the south, creating an ideal
trade location for businesses.
The population of the Newell region, inclusive of our
urban counterparts, is over 24,000. The largest
urban communities in the region are the City of
Brooks and the Town of Bassano. The County has a
positive working relationship with our urban
neighbors, which improves the quality of services
provided to all of our residents.
The County is home to the Eastern Irrigation District
(EID) which provides an extensive water supply,
storage, and drainage network throughout the
region. Water diverted from the Bow River at the
Bassano Dam provides for irrigated agriculture,
industrial, household and livestock use, as well as
many recreational opportunities and enhanced
environmental conditions.
The County has a dynamic and diverse economy
driven by three pillars: Agriculture; Oil and Gas; and
Tourism. There are approximately 500 primary
agricultural producers in the County, and
approximately 1,500 non-agricultural business
enterprises within the County and its municipalities.
The region boasts extraordinary crop quality with
over 300,000 acres of irrigated farmland, 600,000
acres of cultivated dry land farming and 600,000
acres of native and improved rangeland. With a
younger work force and average farm receipts in the
range of $100,000 to $249,999, the region is home
to some of the most profitable farmers in Alberta.
The County has one of Alberta’s most active natural
gas fields. There are roughly 30,000 wells in the
County, which accounts for half of all wells in
Alberta, and 37% of all wells in Canada.
Approximately 170 production and service
companies employ 4,000 to 5,000 people in the
energy sector in the region.
Key tourism anchors include Lake Newell - one of
Canada's largest man-made lakes, Dinosaur
Provincial Park - a UNESCO World Heritage Site, and
recreation activity as diverse as golfing, boating,
camping, fishing, hunting, and wildlife watching.
County of Newell - 2019 Annual Financial Report Page 9
COUNTY COUNCIL
Councillor Clarence Amulung
(403) 793-3813
amulungc@newellmail.caDIVISION 1Rolling HillsCouncillor Wayne Hammergren
(403) 501-8909
hammergrenw@newellmail.caDIVISION 4Rainier/Scandia/Bow CityCouncillor Tracy Fyfe
(403) 793-7230
fyfet@newellmail.caDIVISION 5Cassils/Lake Newell Resort Councillor Huby Kallen
(403) 362-1777
kallenh@newellmail.caDIVISION 2Tilley Councillor Anne Marie Philipsen
(403) 793-0574
philipsena@newellmail.caDIVISION 3Patricia/MillicentCouncillor Kelly Christman
(403) 641-2274
christmank@newellmail.caDIVISION 6BassanoCouncillor Ellen Unruh
(403) 793-3369
unruhe@newellmail.caDIVISION 7RosemaryCouncillor Brian de Jong
(403) 501-8378
dejongb@newellmail.caDIVISION 8DuchessReeve Molly Douglass
(403) 363-9203
douglassm@newellmail.caDIVISION 9GemCouncillor Lionel Juss
(403) 362-0947
jussl@newellmail.caDIVISION 10Brooks
County of Newell - 2019 Annual Financial ReportPage 10
ORGANIZATIONAL CHART
REEVE
&
COUNCIL
CHIEF
ADMINISTRATIVE
OFFICER
EXECUTIVE
ASSISTANT
MANAGER OF
OPERATIONS
MANAGER OF
AGRICULTURAL
SERVICES
MUNICIPAL
ENFORCEMENT
SUPERVISOR
MANAGER OF PLANNING,
DEVELOPMENT & ENGINEERING
DIRECTOR OF
AGRICULTURAL
SERVICES
DIRECTOR OF
INFORMATION
& TECHNOLOGY
DIRECTOR OF
MUNICIPAL
SERVICES
DIRECTOR OF
CORPORATE
SERVICES MANAGER OF
CORPORATE
SAFETY
SERVICES
RURAL FIRE &
EMERGENCY
SERVICES
COORDINATOR MANAGER OF
FINANCE
FLEET
SERVICES
SUPERVISOR
County of Newell - 2019 Annual Financial Report Page 11
GFOA CANADIAN AWARD FOR FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Canadian Award for Financial Reporting to the County of Newell for its annual financial report for the
fiscal year ended December 31, 2018. The Canadian Award for Financial Reporting program was
established to encourage municipal governments throughout Canada to publish high quality financial
reports and to provide peer recognition and technical guidance for officials preparing these reports.
In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an
easily readable and efficiently organized annual financial report, whose contents conform to program
standards. Such reports should go beyond the minimum requirements of generally accepted accounting
principles and demonstrate an effort to clearly communicate the municipal government’s financial
picture, enhance an understanding of financial reporting by municipal governments, and address user
needs.
A Canadian Award for Financial Reporting is valid for a period of one year only. We believe our current
report continues to conform to the Canadian Award for Financial Reporting program requirements, and
we are submitting it to GFOA.
County of Newell - 2019 Annual Financial ReportPage 12
MESSAGE FROM THE REEVE
In these challenging times of the COVID-19 health
emergency, the County of Newell continues
to protect and provide essential services.
Operations have been adapted as necessary
to ensure all Alberta Health Service regulations
are in place to keep staff members safe and
well in their work and in their interactions with
the public and one another. Within this Annual
Report staff have provided facts, figures, and
comments regarding 2019 projects in our three
main service areas—agriculture, planning/
development, and public works. Preparation for
this year’s projects moves forward as we head
into spring.
The events of March 2020 and now April have
unfolded in unbelievable ways, causing us to
wonder what the news will bring today, tomorrow
and the next day. Most of us have similar
thoughts about the future--how many more
weeks will we have to be isolated, will my family
be okay, how will this COVID-19 pandemic end,
or will the economy return so that I can make a living. Naturally so much uncertainty makes us uncomfortable and even fearful. This is all new, overwhelming and hard to digest. Indeed, there are no magic solutions.
At this time more than ever, we must call upon our resilience to look on the bright side, which truly
does exist. We must be grateful for where we live—here on our Canadian prairies with the wide-open
spaces, in Alberta with its excellent health and social support systems, and within the County of Newell where care and courage abound, and where communities look out for one another. Can you imagine a
better place to be? We must also hold onto the belief that we will come out the other side of this health
emergency and get back to work, school, and play and yes, we will be all right.
It is our primary job right now to look after our health and thus protect everyone around us. We must listen to the experts, focus on the facts, and champion our brave and dedicated health care staff,
grocery and pharmacy workers, truck drivers—and all the essential people who continue to provide a
wide variety of services for us. Even while staying home, we need to remember to support one another
safely, however we can.
Let us stay positive, keep our hope and faith strong, and believe that we will eventually return to a ‘new
normal’. A crisis can help us to understand what matters most in life. Just maybe it will be a kinder
world that results from this challenging time. “Together apart”, Newell—stay strong!
Photo by Brooks Bulletin
County of Newell - 2019 Annual Financial Report Page 13
REPORT FROM THE MANAGER OF FINANCE
Introduction
The annual financial report provides readers with an opportunity to assess the county’s financial activities
and available resources. It also provides an opportunity to analyze and comment on the principal
features of the financial information contained in the 2019 audited consolidated financial statements
and to highlight key financial results that occurred during the year. Management at the county of newell
is responsible for the information contained in the annual financial report.
Photo by A. Ferguson
County of Newell - 2019 Annual Financial ReportPage 14
REPORT FROM THE MANAGER OF FINANCE
2019 Financial Highlights
Consolidated Statement of Financial Position
The County improved its already strong financial position in 2019. Financial assets increased by $9.2
million while liabilities decreased by $7.3 million resulting in an overall increase in net financial assets
of $16.5 million. The allowance for uncollectible taxes was increased by $531 thousand in 2019 due to
oil and gas companies that have entered receivership and are unlikely to settle their balances owing.
Non-financial assets, which consist primarily of tangible capital assets and inventory for consumption,
decreased by $4.2 million. The changes in net financial assets and non-financial assets result in a net
increase in accumulated surplus of $12.3 million for 2019.
Consolidated Statement of Financial Activities
Revenues were $3.5 million higher than budgeted or 109.3% of budgeted revenues. This is largely due to increased well-drilling activity in the region which drove well-drilling tax revenues $1.3 million higher than budgeted and returns on investments that were $1.6 million higher than budgeted. County Council cancelled 35 per cent of property taxes for qualifying shallow gas properties as directed by the Province during 2019. The Province reimbursed the County for the property taxes through an education property tax credit equivalent to the refunded amount of $3.4 million which has been recognized in the financial statements as a government transfer for operating.
Expenses were $2.6 million lower than budgeted or 91.0% of budgeted expenses. Staffing costs were under budget due to lower than expected training expenses, lower overtime costs in the Municipal Services and Agricultural Services departments and staffing which was budgeted for succession planning but not hired during the year. Contracted services were under budget primarily due to lower than expected repairs and maintenance on roads and buildings, as well as unfinished intermunicipal collaboration and water line locating projects. Materials, goods, supplies and utilities were under budget primarily due to lower than expected repairs and maintenance costs on vehicles and equipment, bridge file work which was not completed, IT hardware replacements which were deferred, and a reduction in the use of road maintenance materials such as gravel and calcium.
The County transferred $4.4 million to the Province for paving projects on highways 873, 525 and 876.
The County ended the year with an Annual Surplus of $12.3 million.
Consolidated Statement of Change in Net Financial Assets
Net financial assets increased by $16.5 million, for a total of $93.4 million in net financial assets at the
end of the year. This indicates the County can afford to settle its liabilities.
Consolidated Statement of Cash Flows
Cash and cash equivalents increased by $23.3 million in 2019. Operations provided cash of $22.7 million, $3.2 million was used to purchase tangible capital assets, $9.0 million was used in investing activities and $5.2 million was used to repay long term debt.
County of Newell - 2019 Annual Financial Report Page 15
REPORT FROM THE MANAGER OF FINANCE
MANAGEMENT REPORTING & CONTROL
The major components of the County’s financial management and control programs include the budget
process, accounting procedures, external audit, and various policies which are described below.
Budget Process
On an annual basis, Council considers a proposed operating budget and a ten-year capital forecast and
adopts the operating and capital budgets for the coming year. The budget process involves council,
department heads, staff and the public. Council approves the budget taking into account current
economic conditions, provincial policy changes and service needs within the County. It should be noted
that under provincial legislation sufficient revenues must be raised to meet all budgeted expenditures.
After the budget is adopted by Council, expenditures are controlled against budget by formal policies
and financial systems designed specifically to prevent budget overruns.
Accounting Procedures
The County’s accounting system and related internal controls are designed to provide reasonable
assurance that financial records are complete and accurate and that assets are safeguarded against
loss from unauthorized use or disposition. The County’s Purchasing and Budget Variance policies
ensure that controls and reporting requirements are appropriate. Generally accepted accounting
principles for local governments are adhered to.
External Audit
Council is required by the Municipal Government Act to engage independent auditors to express an
opinion as to whether the County’s financial statements present fairly, in all material respects, the
County’s operating results and financial position. The auditors have full and free access to all County
records and they meet periodically with staff to discuss matters arising from the audit or from new
policies and procedures. The auditors also provide the County with a management letter providing
comments on internal controls.
While Council engages an independent auditor to express an opinion on the financial statements, the
County’s management is responsible for the preparation of the financial statements and the integrity
and objectivity of the financial information and representations contained in the financial statements.
Purchasing Policy
The County ensures that consistent procedures are followed for purchases through Purchasing Policy
2018-PAD-051 which sets expenditure limits for the County. The policy ensures that items purchased
have been approved through the budget process or by separate resolution of Council.
County of Newell - 2019 Annual Financial ReportPage 16
Investment Policy
The County’s excess funds are invested in accordance with Investment Policy 2019-PAD-032. This
policy has as its objectives the preservation of capital, maintenance of liquidity and the realization of
a competitive rate of return. Municipal investments are governed by restrictive legislation under the
Municipal Government Act. The County’s investment policy meets all of these requirements.
Restricted Surplus Policy
The County has established specific restricted surplus funds, through Restricted Surplus Policy 2017-
PAD-062, to provide for emergent financial needs, stabilize tax rates, set aside funds for the replacement
of vehicles, machinery, equipment, infrastructure and facilities and to minimize its financing needs.
Maintaining financial health and stability is the guiding principle behind this policy.
FINANCIAL INDICATORS DISCUSSION & ANALYSIS
The 2019 Consolidated Financial Statements are prepared in compliance with Public Sector Accounting
Standards. The consolidated financial statements provide a snapshot of the County’s financial position
at its fiscal year end (December 31) and the results of its operations, and changes in both cash flow
and net assets for the preceding year. However, the consolidated financial statements do not provide a
complete indication of the financial health of the County nor indicate how well it is performing in relation
to its economic and fiscal environment.
The Annual Financial Report seeks to expand on and explain information in the financial statements
by applying PSAB issued Statement of Recommended Practices (SORP) 4: Indicators of Financial
Condition. This information may help financial statement users better understand the risks facing
the County in maintaining the programs and services it currently provides, as well as the policy and
operational decisions it must make in light of its financial health.
This SORP is not part of generally accepted accounting principles (GAAP) and there is no requirement
for governments to implement its recommendations. Although there are numerous indicators to assess
a government’s financial condition, the SORP recommends that, at a minimum, indicators related to
sustainability, flexibility and vulnerability be considered. Definitions of these assessors follow, as well
as a selection of indicators related to each.
REPORT FROM THE MANAGER OF FINANCE
County of Newell - 2019 Annual Financial Report Page 17
SUSTAINABILITY
Sustainability measures the ability of the County to maintain its existing programs and services,
including maintaining its financial obligations to creditors, without increasing its debt or raising taxes.
The following indicators have been selected to assess sustainability.
Annual Surplus or Deficit
This annual result indicates the extent to which the County’s revenue is more than its expenses during
that year. A surplus means revenues exceed expenses while a deficit may indicate the County has not
lived within its means. Long-term financial sustainability is dependent upon ensuring that on average,
over time, expenses are less than revenues. In essence, this requires current taxpayers to fully meet
the cost of services.
The 2017 deficit was driven by the transfer of water infrastructure assets with a value of $33.3 million to
Newell Regional Services Corporation (NRSC) during the year. These assets were being held in trust
for NRSC as part of the grant funded Regional Water project. NRSC issued 2,986 Class H preferred
shares with a value of $2.98 million to the County for its contribution.
REPORT FROM THE MANAGER OF FINANCE
SUSTAINABILITY
Sustainability measures the ability of the County to maintain its existing programs and services, including
maintaining its financial obligations to creditors, without increasing its debt or raising taxes. The following
indicators have been selected to assess sustainability.
Annual Surplus or Deficit
This annual result indicates the extent to which the County’s revenue is more than its expenses during
that year. A surplus means revenues exceed expenses while a deficit may indicate the County has not
lived within its means. Long-term financial sustainability is dependent upon ensuring that on average,
over time, expenses are less than revenues. In essence, this requires current taxpayers to fully meet the
cost of services.
The 2017 deficit was driven by the transfer of water infrastructure assets with a value of $33.3 million to
Newell Regional Services Corporation (NRSC) during the year. These assets were being held in trust for
NRSC as part of the grant funded Regional Water project. NRSC issued 2,986 Class H preferred shares
with a value of $2.98 million to the County for its contribution.
County of Newell - 2019 Annual Financial ReportPage 18
REPORT FROM THE MANAGER OF FINANCE
Financial Assets-to-Liabilities
This indicator shows the extent to which the County’s future revenues will be required to pay for past
transactions or events. A ratio greater than one indicates that financial assets are sufficient to meet
obligations and to finance future operations while a ratio less than one may mean a reliance on future
revenues or increasing debt to pay for past decisions.
This ratio increased by 2.86 in 2019. The County remains in a relatively strong financial position with
$7.35 in financial assets for every $1.00 of financial liability.
Financial Assets-to-Liabilities
This indicator shows the extent to which the County’s future revenues will be required to pay for past
transactions or events. A ratio greater than one indicates that financial assets are sufficient to meet
obligations and to finance future operations while a ratio less than one may mean a reliance on future
revenues or increasing debt to pay for past decisions.
This ratio increased by 2.86 in 2019. The County remains in a relatively strong financial position with
$7.35 in financial assets for every $1.00 of financial liability.
Photo by S. Plett
County of Newell - 2019 Annual Financial Report Page 19
REPORT FROM THE MANAGER OF FINANCE
Taxes Receivable as a % of Tax Levies
The following chart reflects the total uncollected property taxes as a percentage of the total tax levy. Every year, a percentage of property owners are unable to pay property taxes for a variety of reasons. If this percentage increases over time, it may indicate an overall decline in the County’s economic health. Additionally, as uncollected property taxes rise, liquidity decreases.
Taxes Receivable as a % of Tax Levies
The following chart reflects the total uncollected property taxes as a percentage of the total tax levy.
Every year, a percentage of property owners are unable to pay property taxes for a variety of reasons. If
this percentage increases over time, it may indicate an overall decline in the County’s economic health.
Additionally, as uncollected property taxes rise, liquidity decreases.
Taxes Receivable as a % of Tax Levies
The following chart reflects the total uncollected property taxes as a percentage of the total tax levy.
Every year, a percentage of property owners are unable to pay property taxes for a variety of reasons. If
this percentage increases over time, it may indicate an overall decline in the County’s economic health.
Additionally, as uncollected property taxes rise, liquidity decreases.
County of Newell - 2019 Annual Financial ReportPage 20
FLEXIBILITY
Flexibility is the degree to which the County can change its debt burden or raise taxes to respond to
rising commitments. Increasing debt and taxation reduces flexibility and the County’s ability to respond
to changing circumstances.
Debt Servicing Costs-to-Revenues
The ratio of debt servicing costs-to-revenues indicates the amount of current revenue that is required to
service past borrowing decisions and, as a result, is not available for programs and services.
REPORT FROM THE MANAGER OF FINANCE
FLEXIBILITY
Flexibility is the degree to which the County can change its debt burden or raise taxes to respond to rising
commitments. Increasing debt and taxation reduces flexibility and the County’s ability to respond to
changing circumstances.
Debt Servicing Costs-to-Revenues
The ratio of debt servicing costs-to-revenues indicates the amount of current revenue that is required to
service past borrowing decisions and, as a result, is not available for programs and services.
FLEXIBILITY
Flexibility is the degree to which the County can change its debt burden or raise taxes to respond to rising
commitments. Increasing debt and taxation reduces flexibility and the County’s ability to respond to
changing circumstances.
Debt Servicing Costs-to-Revenues
The ratio of debt servicing costs-to-revenues indicates the amount of current revenue that is required to
service past borrowing decisions and, as a result, is not available for programs and services.
County of Newell - 2019 Annual Financial Report Page 21
Debt Limits and Debt Payments
The County is limited in the amount of debt that it can incur beyond the limitations specified in Alberta
Regulation 255/00. The maximum allowable debt the County could hold within this regulation is
approximately $62.5 million. The County held outstanding debt balances representing 15.4% of this
maximum allowable amount at the end of 2019. This leaves the County with approximately $52.9
million of borrowing room.
REPORT FROM THE MANAGER OF FINANCE
Debt per capita is expected to decrease steadily moving forward. The last of the debentures supporting
the rural water project is scheduled to be repaid in full by 2023.
Debt Limits and Debt Payments
The County is limited in the amount of debt that it can incur beyond the limitations specified in Alberta
Regulation 255/00. The maximum allowable debt the County could hold within this regulation is
approximately $62.5 million. The County held outstanding debt balances representing 15.4% of this
maximum allowable amount at the end of 2019. This leaves the County with approximately $52.9 million
of borrowing room.
Debt per capita is expected to decrease steadily moving forward. The last of the debentures supporting
the rural water project is scheduled to be repaid in full by 2023.
Debt Limits and Debt Payments
The County is limited in the amount of debt that it can incur beyond the limitations specified in Alberta
Regulation 255/00. The maximum allowable debt the County could hold within this regulation is
approximately $62.5 million. The County held outstanding debt balances representing 15.4% of this
maximum allowable amount at the end of 2019. This leaves the County with approximately $52.9 million
of borrowing room.
Debt per capita is expected to decrease steadily moving forward. The last of the debentures supporting
the rural water project is scheduled to be repaid in full by 2023.
County of Newell - 2019 Annual Financial ReportPage 22
Restricted Surplus
Restricted surplus funds are included as part of the County’s accumulated surplus. Restricted surplus funds are a critical component of the County’s long-term financing and capital plan. The County’s Restricted Surplus Policy 2017-PAD-062 establishes specific restricted surplus funds to: Stabilize tax rates in the face of variable and uncontrollable factors (consumption, interest rates, unemployment rates, changes in subsidies)
Provide financing for one-time or short-term requirements without permanently impacting the tax and utility rates
Make provisions for replacement or acquisitions of assets and infrastructure that are currently being consumed and amortized
Avoid spikes in funding requirements of the capital plan by reducing the reliance on long-term debt borrowings
Provide flexibility to manage debt levels and protect the municipality’s financial position
Provide for future liabilities incurred in the current year but paid for in the future
Provide a source of internal financing
Ensure adequate cash flows
REPORT FROM THE MANAGER OF FINANCE
Restricted surplus offers liquidity which enhances the County’s flexibility in addressing operating
requirements and in permitting the County to temporarily fund capital projects internally, allowing it time
to access debt markets and take advantage of favourable conditions. The level of restricted surplus
funds required will vary for a number of reasons including:
Services provided by the County
Age and condition of infrastructure, inventory of fleet and vehicles supporting County operations
Economic conditions and projections
Internal debt and restricted surplus policies
Restricted Surplus Policy 2017-PAD-062 specifies minimum balances to be maintained for the restricted
surplus funds listed below. The County is in compliance with this policy as at December 31, 2019.
Restricted Surplus
Restricted surplus funds are included as part of the County’s accumulated surplus. Restricted surplus
funds are a critical component of the County’s long-term financing and capital plan. The County’s
Restricted Surplus Policy 2017-PAD-062 establishes specific restricted surplus funds to:
• Stabilize tax rates in the face of variable and uncontrollable factors (consumption, interest rates,
unemployment rates, changes in subsidies)
• Provide financing for one-time or short-term requirements without permanently impacting the tax
and utility rates
• Make provisions for replacement or acquisitions of assets and infrastructure that are currently
being consumed and amortized
• Avoid spikes in funding requirements of the capital plan by reducing the reliance on long-term
debt borrowings
• Provide flexibility to manage debt levels and protect the municipality’s financial position
• Provide for future liabilities incurred in the current year but paid for in the future
• Provide a source of internal financing
• Ensure adequate cash flows
Restricted surplus offers liquidity which enhances the County’s flexibility in addressing operating
requirements and in permitting the County to temporarily fund capital projects internally, allowing it time to
access debt markets and take advantage of favourable conditions. The level of restricted surplus funds
required will vary for a number of reasons including:
• Services provided by the County
• Age and condition of infrastructure, inventory of fleet and vehicles supporting County operations
• Economic conditions and projections
• Internal debt and restricted surplus policies
Restricted Surplus Policy 2017-PAD-062 specifies minimum balances to be maintained for the restricted
surplus funds listed below. The County is in compliance with this policy as at December 31, 2019.
Restricted Surplus
Restricted surplus funds are included as part of the County’s accumulated surplus. Restricted surplus
funds are a critical component of the County’s long-term financing and capital plan. The County’s
Restricted Surplus Policy 2017-PAD-062 establishes specific restricted surplus funds to:
• Stabilize tax rates in the face of variable and uncontrollable factors (consumption, interest rates,
unemployment rates, changes in subsidies)
• Provide financing for one-time or short-term requirements without permanently impacting the tax
and utility rates
• Make provisions for replacement or acquisitions of assets and infrastructure that are currently
being consumed and amortized
• Avoid spikes in funding requirements of the capital plan by reducing the reliance on long-term
debt borrowings
• Provide flexibility to manage debt levels and protect the municipality’s financial position
• Provide for future liabilities incurred in the current year but paid for in the future
• Provide a source of internal financing
• Ensure adequate cash flows
Restricted surplus offers liquidity which enhances the County’s flexibility in addressing operating
requirements and in permitting the County to temporarily fund capital projects internally, allowing it time to
access debt markets and take advantage of favourable conditions. The level of restricted surplus funds
required will vary for a number of reasons including:
• Services provided by the County
• Age and condition of infrastructure, inventory of fleet and vehicles supporting County operations
• Economic conditions and projections
• Internal debt and restricted surplus policies
Restricted Surplus Policy 2017-PAD-062 specifies minimum balances to be maintained for the restricted
surplus funds listed below. The County is in compliance with this policy as at December 31, 2019.
County of Newell - 2019 Annual Financial Report Page 23
Tangible Capital Assets
The County’s tangible capital assets (TCA) decreased by a net $3.9 million in 2019 which includes new
asset acquisitions of $3.3 million offset by $7.0 million in amortization expense and asset disposals with
a net book value of $178 thousand.
Significant acquisitions include:
$1.39 million – Road reconstruction
$1.25 million – EID Drainage Partnership
$383 thousand – Machinery and equipment
$172 thousand – Vehicles
Net Book Value of Tangible Capital Assets-to-Cost of Tangible Capital Assets
Net book value of TCA compared to total cost of TCA measures the extent to which the estimated useful
lives of the County’s tangible capital assets are available to provide its products and services.
As at December 31, 2019 approximately 70% of the County’s assets useful lives remain available to
provide future services.
REPORT FROM THE MANAGER OF FINANCE
Tangible Capital Assets
The County’s tangible capital assets (TCA) decreased by a net $3.9 million in 2019 which includes new
asset acquisitions of $3.3 million offset by $7.0 million in amortization expense and asset disposals with a
net book value of $178 thousand.
Significant acquisitions include:
• $1.39 million – Road reconstruction
• $1.25 million – EID Drainage Partnership
• $383 thousand – Machinery and equipment
• $172 thousand – Vehicles
Net Book Value of Tangible Capital Assets-to-Cost of Tangible Capital Assets
Net book value of TCA compared to total cost of TCA measures the extent to which the estimated
useful lives of the County’s tangible capital assets are available to provide its products and services.
As at December 31, 2019 approximately 70% of the County’s assets useful lives remain available to
provide future services.
Tangible Capital Assets
The County’s tangible capital assets (TCA) decreased by a net $3.9 million in 2019 which includes new
asset acquisitions of $3.3 million offset by $7.0 million in amortization expense and asset disposals with a
net book value of $178 thousand.
Significant acquisitions include:
• $1.39 million – Road reconstruction
• $1.25 million – EID Drainage Partnership
• $383 thousand – Machinery and equipment
• $172 thousand – Vehicles
Net Book Value of Tangible Capital Assets-to-Cost of Tangible Capital Assets
Net book value of TCA compared to total cost of TCA measures the extent to which the estimated
useful lives of the County’s tangible capital assets are available to provide its products and services.
As at December 31, 2019 approximately 70% of the County’s assets useful lives remain available to
provide future services.
Page 24 County of Newell - 2019 Annual Financial Report
VULNERABILITY
Vulnerability is the degree to which the
County becomes dependent on, and therefore
vulnerable to, sources of funding outside its
control or influence. The lower the County’s
own-source revenue is, the more it relies on
fiscal decisions of others.
Government Transfers-to-Total Revenue
This indicator demonstrates the level of
government transfers compared to total
revenues. The higher the percentage, the
more reliance the County puts on receipt of
funds from other levels of government. These
transfers are dependent on policy decisions
which are outside the control of the County.
The inset chart illustrates that a significant portion of total revenues in some years are attributable to
government transfers. It is important to note that the majority of these government transfers have been
used for financing major capital projects. The County’s ability to undertake such projects is dependent
in large part on grant funding from other levels of government.
It is management’s opinion that the County is not exposed to significant risk in terms of its reliance on
government transfers for operating to support its products and services.
Respectfully Submitted,
Matt Fenske, CPA, CA
Manager of Finance
April 9, 2020
REPORT FROM THE MANAGER OF FINANCE
VULNERABILITY
Vulnerability is the degree to which
the County becomes dependent on,
and therefore vulnerable to, sources
of funding outside its control or
influence. The lower the County’s
own-source revenue is, the more it
relies on fiscal decisions of others.
Government Transfers-to-Total Revenue This indicator demonstrates the level
of government transfers compared
to total revenues. The higher the
percentage, the more reliance the
County puts on receipt of funds from
other levels of government. These
transfers are dependent on policy
decisions which are outside the control of the County.
The inset chart illustrates that a significant portion of total revenues in some years are attributable to
government transfers. It is important to note that the majority of these government transfers have
been used for financing major capital projects. The County’s ability to undertake such projects is
dependent in large part on grant funding from other levels of government.
It is management’s opinion that the County is not exposed to significant risk in terms of its reliance on
government transfers for operating to support its products and services.
Respectfully Submitted,
Matt Fenske, CPA, CA
Manager of Finance
April 9, 2020
VULNERABILITY
Vulnerability is the degree to which
the County becomes dependent on,
and therefore vulnerable to, sources
of funding outside its control or
influence. The lower the County’s
own-source revenue is, the more it
relies on fiscal decisions of others.
Government Transfers-to-Total Revenue This indicator demonstrates the level
of government transfers compared
to total revenues. The higher the
percentage, the more reliance the
County puts on receipt of funds from
other levels of government. These
transfers are dependent on policy
decisions which are outside the control of the County.
The inset chart illustrates that a significant portion of total revenues in some years are attributable to
government transfers. It is important to note that the majority of these government transfers have
been used for financing major capital projects. The County’s ability to undertake such projects is
dependent in large part on grant funding from other levels of government.
It is management’s opinion that the County is not exposed to significant risk in terms of its reliance on
government transfers for operating to support its products and services.
Respectfully Submitted,
Matt Fenske, CPA, CA
Manager of Finance
April 9, 2020
Page 25County of Newell - 2019 Annual Financial Report
Photo by D. Wiebe
County of Newell - 2019 Annual Financial ReportPage 26
AGRICULTURAL SERVICES REPORT
2019 marked the 74th year that Agricultural Service Boards (ASB) have been established across
Alberta. As far back as 1951, before the County of Newell became the County of Newell (1953), there
was a Weed Eradication Committee, which was later converted to the Agricultural Services Board in
April of 1953. Although tasks and priorities have changed over time, sustaining a viable agricultural
industry has always been at the forefront.
Today, your ASB’s mission is:
“Working together we strive to guide viable growth and sustainability in the County of Newell by
implementing programs in areas of weed, pest and soil control as well as programs focused on sound
agronomics and environmental stewardship.”
Programming revolving around weed, pest and soil control are still the priority, but a mix of environmental
programs and vegetation management are part of the mix. Outlined in the report are the highlights.
Weed Control
The ASB manages vegetation in municipal rights of ways, municipal owned land, hamlet open spaces
and within our partner municipalities. Regulated weed species under the Weed Control Act are top
priority. You have access to some well trained weed control and identification staff, so if you have tough
to control weeds or are having trouble identifying threats, please ask them for help.
Invasive plant species are a constant battle. The ASB employs four Vegetation Management Technicians
to aid ratepayers in their control efforts as well as identify risks and maintain established infestations.
Invasive species spread via transportation corridors and water ways and the ASB keeps a close eye
on those vectors.
2019 programming saw weed populations controlled on:
1. CP line (66 miles)
a. GPS/inspect/control
2. Road network
a. (576 miles sprayed – local roads and highways, selective control)
b. (86 miles sprayed – local road shoulder non-selective control)
c. (48 miles sprayed – non-selective control for construction)
3. Bow River (60 miles of control work – spraying and picking)
4. Inspected EID delivery system (240 miles in 2019)
5. 500 acres controlled under the Private Weed Control policy
6. Hosted a Weed ID training (90 Participants, hosted in County of Newell)
7. Controlled weeds in 9 Grasslands Public School Grounds (Cost recovery)
8. Controlled weeds in parks, Municipal owned land, and Cemeteries
(Bassano and Brooks - cost recovery)
9. Identified and controlled large, widespread Knapweed problem (Duchess)
Major weeds of concern include but are not limited to: Scentless Chamomile, Black Henbane, Downy
Brome, Baby’s Breath, Yellow Toadflax, Canada Thistle, Burdock, Tall Buttercup and Hound’s Tongue.
County of Newell - 2019 Annual Financial Report Page 27
AGRICULTURAL SERVICES REPORT
Pest Control
Over the last ¾ of a century the species of pests may have
changed but monitoring and reporting have remained a
constant.
This season the ASB surveyed:
1. 285 canola fields during flowering and 4 fields during swathing for signs of Clubroot
a. 2 confirmed clubroot infestations in 2019
2. 44 locations for grasshopper populations
3. 1250 sites for Coyote RAI (Relative Abundance Index)
4. 5 potato fields for signs of Bacterial Ring Rot
The ASB also offers programming and sell pest control products to help mitigate the effects of pests in
our County. They include:
1. Coyote Control Incentive Program (1665 coyotes harvested)
2. Trap Rentals – Skunk/Racoon – 15 renters, 214 rental days
3. Magpie traps – 2 Renters – 75 rental days, sold 1 new trap
4. Richardson Ground Squirrel control (1549 bottles of 2%LSC sold, 113 landowners)
5. Researched the feasibility of a hawk nesting pole program
6. Had flasks of Phostoxin for sale – for grain bin fumigation and Richardson Ground Squirrel control
7. Operated 2 hamlet gopher control programs using Rozol RTU (2 weeks)
8. Controlled Richardson Ground Squirrels in partner municipalities and Grasslands Public School
grounds (Rocon applicator, 3 weeks)
9. Rabies Surveillance Partnership (1 week of trapping/monitoring)
County of Newell - 2019 Annual Financial ReportPage 28
AGRICULTURAL SERVICES REPORT
Environmental Programming
Through a partnership with the Alberta Government, the ASB offers environmental programming. This
programming encourages information sharing and helps us partner with others to provide different
learning opportunities. It also enables us to commit time to Environmental Farm Plans and some CAP
grant help.
In 2019 the following opportunities were available and utilized:
1. 10 Environmental Farm Plans completed; 4 others started
2. Agricultural Funding Workshop – 46 Participants
3. Southern Alberta Grazing School for Women (33 attendees)
4. Manure Management Seminar (Lethbridge) – 126 attendees including 43 college students and
4 attendees from the County of Newell)
5. Farming Smarter Conference (272 attendees, 5 from the County of Newell)
Your ASB is also proud to sponsor and work with:
1. Alberta Farm Animal Care Association
2. Farm Safety Center
3. Farming Smarter
4. Alberta Invasive Species Council
5. Ag For Life
Mowing
The ASB operates 2 distinct mowing
programs. Right of way mowing and
County owned property mowing. Both
take place to compliment weed control
efforts, improve drainage, improve right
of way safety and for aesthetics. In total
the ASB mowed 3860 miles (one way)
on the roadsides (averaging 4.54 miles
mowed per hour) and invested over 1500
hours maintaining vegetation in hamlets,
subdivisions and airports.
County of Newell - 2019 Annual Financial Report Page 29
AGRICULTURAL SERVICES REPORT
Rental Equipment
The ASB has a number of equipment rentals available. Rental units are charged out as close to cost
recovery as possible. Usage for 2019 is as follows:
1. Loading Chute and Panels – 8 renters
2. Calf table – 2 renters
3. Livestock scale – 12 renters
4. 30 foot weed wipe – 3 renters
5. Boomless sprayers (2) – 1 renter
6. Three Point Hitch Sprayer – 4 renters
7. Insecticide Sprayer – 1 renter
8. Double disc drill – 11 renters, 1435.8 acres
9. No Till Drills (2) – 39 renters, 2774 acres
10. Brillion Seeders (2) – 5 renters, 196.3 acres
11. Tandem Axle BBQ – 41 users, plus rodeo week activities
Emerson Bridge Park Campground
Emerson Bridge Campground is a beautiful campground located where highway 36 intersects the Red
Deer River. This campground boasts large sites, large cottonwood trees and the peaceful serenity of
nature. The campground has a total of 64 designated campsites, 49 of which are power sites, 9 non-
power sites and 6 overflow sites. Beyond all of these great features, the campground is owned by the
County and the operation and maintenance falls under the responsibility of the ASB. 2019 was a great
camping season with an average occupancy rate during the 128-night season of 32% (2018, 112 nights
– 32% occupancy) for a total income over the season of $78,066.00.
County of Newell - 2019 Annual Financial ReportPage 30
AGRICULTURAL SERVICES REPORT
Other Programming
Some other great programs and activities include the Calgary Stampede Farm Family Award, Rural
Beautification Program, Rural Roots Ag Day, seed cleaning plant inspections/licensing, roadside
seeding (48 miles) and the ASB is happy to offer various pest and agronomic recommendations.
The ASB strives to partner with other organizations in projects of mutual benefit. These partners include
Alberta Conservation Association, Newell Regional Solid Waste Management Authority, Partners in
Habitat Development, Canadian Pacific Railway, Volker Stevin, Alberta Infrastructure, Grasslands
Public Schools, the local Oil and Gas industry, TD Tree Days and other municipalities.
The ASB continues to be active in promoting and protecting agriculture. If you have questions/concerns
or require more information on any of the programming, please feel free to contact the ASB office at
403-362-3266 or check out our website www.countyofnewell.ab.ca and remember to follow the County
on social media for timely information sharing. ASB related issues and concerns are dealt with at
regular Council meetings.
Respectfully Submitted,
Todd Green, Director of Agricultural Services
County of Newell - 2019 Annual Financial Report Page 31
County of Newell - 2019 Annual Financial ReportPage 32
MUNICIPAL SERVICES REPORT
Municipal Services consists of multiple smaller departments which include Fleet Services, Municipal
Enforcement, Public Works & Engineering - Transportation (Roads), Airport, Water, Wastewater
(Sewer), Storm Water, Solid Waste Services, and Planning & Development – all necessary Departments
to encourage and support sustainable growth and quality of life. Through responsible management,
innovation and teamwork, these Departments strive to provide dependable, high quality services at
reasonable costs.
The following are key highlights from the various Departments in 2019.
Municipal Enforcement Services
Municipal Enforcement Department continues with service provision in partner jurisdictions including
the Town of Bassano, Villages of Duchess and Rosemary, the Eastern Irrigation District, and the
Village of Hussar. Partnership services are cost recovered on an hourly rate basis under contract. The
Department continues to engage and educate the public. Monthly priorities for the department match
that of the Selective Traffic Enforcement Program (STEP) of the Province, which are identified on the
Alberta Traffic Safety Calendar.
The Department patrolled partner jurisdictions for 960 hours, same as 2018. In addition to this, the
Department patrolled County jurisdictions for 1481.50 hours, up from 1410.00 hours in 2018. A combined
total of 2441.50 hours of time was spent by officers on patrol in 2019, up from 2370.00 hours in 2018.
The Department issued 232 tickets and 268 warnings in 2019 related to Provincial offences within the
County and partner jurisdictions. The Top Ten Provincial offenses, representing 81% of all offences
in 2019, included violations of: Speeding (237), Traffic Safety Act (41), Vehicle Equipment Regulation
(29), Commercial Vehicle Safety Regulation (23), Use of Highway and Rules of the Road Regulation
(16), Driver Not Wearing Seatbelt (14), Fail to Produce Insurance (14), Fail to Obey Stop Sign (13), Fail
to Obey Traffic Control Device (10), Gaming/Liquor/Cannabis (9).
11 tickets and 134 warnings were
also issued in 2019 related to Bylaw
offences within the County and
partner jurisdictions. The Top Ten
Bylaw offenses, representing 83% of
all Bylaw offences in 2019, included
violations of: Unsightly Property (34),
Dog Control – At Large (16), Sidewalk
Snow/Ice Control (16), Sprinkling of
Road Allowance (13), Unauthorized
Road Use (9), Unauthorized Road Use
– Unauthorized Deposit of Materials
onto the Road (8), Dog Control – Not
Licenced (8), Bylaw (6), Traffic (6),
Traffic - Detached Trailers (5).
County of Newell - 2019 Annual Financial Report Page 33
MUNICIPAL SERVICES REPORT
Public Works & Engineering Services
The Public Works & Engineering Departments collectively and collaboratively manage 1466 Km of
gravel road and 230 Km of paved road surfaces, through established preventative maintenance and
capital improvement programs.
The Departments strive to provide well maintained gravel surfaced roads utilizing 8 grader operators
responsible for an average of 185 Km of gravel road each. It takes 20 working days (1 month) to
complete one round of maintenance services per beat. Over the course of the spring, summer,
and fall maintenance seasons grader operators in 2019 performed 8881 Km of gravel road surface
maintenance, compared to 8606 Km in 2018. Additionally, the Departments re-surfaced 388.1 Km, or
26.5% of the total gravel road surfaces in the County, compared to 295.0 Km (20%) 2019. The 2019
program consumed 42,012 cubic meters of crushed aggregates and was completed at a total cost
of $689,498 averaging $1,776.60/Km. compared to 31,767 cubic meters at a total cost of $490,632
averaging $1,666.00/Km in 2018.
The Departments offer Dust Abatement services where 129,951 linear meters (129.95 Km) of dust
abatement were applied to gravel surfaced roads in 2019 compared to 140,776 linear meters (140.78
Km) in 2018. The program consisted of 306 applications from Residential (280) and Non-Residential (26)
applicants, compared to 284 applications from Residential (269) and Non-Residential (15) applicants
in 2018. County Aggregate Haul Roads and intersection treatments included, the 2019 program
consumed 2,120,570 litres of dust abatement product over 16 working days with two active crews
consisting primarily of County forces, at a total cost of $588,434 averaging $4.53/Lm. In comparison,
the 2018 program consumed 2,412,177 litres, taking 19 working days to complete, at a total cost of
$691,653 averaging $4.91/Lm.
The Departments completed 48.25 Km of Road Shoulder Pulls in 2019 in effort to return roads to
standard classified width, to elevate and re-shape the road surface. In 2018 the program rehabilitated
58.0 Km of road.
In addition to the gravel road network the County provides a ban free paved road network. The ban free
driving surface permits producers to transport commodities from field to market year-round, unrestricted.
In 2018, the County Council entered into 50/50 Partnership with Alberta Transportation to improve
Hwy 873 from Kinbrook Island Access south and west to Hwy 36, including Hwy 535 unpaved portion
from Hwy 873 east. The contract was awarded in the amount of $13,750,000, including professional
engineering fees, for work consisting of grade, base and pave for 21.9 Km of Provincial road. Top lift
of asphalt was completed in 2018, deferred work was completed in 2019. The total project cost was
$11,987,559. The Partnership also included improving Hwy 876 from Hwy 1 north to Hwy 544, of which
replacement and improvements to bridges were complete in 2019 at a total project cost of $841,140
(awarded in a separate contract from the road improvements), and whereas grading work on Hwy 876
was mostly complete in 2019. Final grading work will be completed in spring 2020 followed by base
and pave work with substantial completion date of November 30, 2020, with anticipated completion
to be earlier in the year. This contract was awarded December 6, 2018 and costs estimated to be
$20,077,820. Costs to date are $8,343,226.
County of Newell - 2019 Annual Financial ReportPage 34
MUNICIPAL SERVICES REPORT
The Departments, now in the ninth year of partnership with the EID, continue with improvements of
$2 million annually ($1 million each party), as approved by EID Board and County Council. Progress
in 2019 included the completion of the final 10.4 Km in Rainier South, the final 16 Km of drainage in
Rainier North, including the final 4.5 Km in Millicent due to finalization of land acquisition from Her
Majesty the Queen (HMQ). In 2018, approximately 8.4 Km of drainage in the Rainier south area were
completed, whereas 10.3 Km were completed there in 2017. Previously completed projects include
Cassils (15.2 Km), Rolling Hills (36.8 Km), Scandia (33 Km), and most recently Rainier (65 Km) and
Millicent (28.8 Km). Future planned work includes Bow City area scheduled in 2020 consisting of 13.0
Km of improvements. Following that, the program is scheduled to move north to Rosemary where
185.7 Km of improvements are planned over 4 years commencing in as early as late summer 2020.
Water Services
The County Rural Water System consists of 1152 Km of water line servicing residences and businesses.
The number of active water users as of December 31, 2019 is 1183 active users of 1563 registered
users, or 75% active, up from 1151 active users of 1555 registered users, or 74% active in 2018.
Closing Remarks
Thank you to our dedicated team of staff who get the work done, in the field and in the office. I
commend you for your efforts, contributions, and dedication to the County and the ratepayers we serve
as we provide many of the services that encourage and support sustainable growth and quality of life
in our great region.
Respectfully Submitted,
Mark Harbicht, Director of Municipal Services
County of Newell - 2019 Annual Financial Report Page 35
Photo by B. Yokoyama
County of Newell - 2019 Annual Financial ReportPage 36
Subdivisions
The Oldman River Regional Services Commission received 23 subdivision applications in 2019 which
would create a total of 34 new lots.
# of
Subdivisions
Boundary
Line Adj
NEWLY CREATED LOTS (By Use)
Residential Commercial Industrial
County
Res Agriculture Misc TOTAL
2019 23 3 10 1 1 14 8 34
2018 15 1 9 5 15
2017 15 6 4 1 4 3 1 13
2016 13 2 3 2 4 4 1 14
2015 14 1 1 1 10 3 15
2014 20 1 2 1 23 6 32
*Information submitted by ORRSC
Land Use Bylaw AmendmentsThere were 7 completed land use bylaw amendments passed in 2019. 7 amendments were also completed in 2018. Several area structure plans were rescinded in 2019 as it was determined that they were either completed or outdated.
Intermunicipal Development Plans (IDPs)We continue to work towards completing the IDPs with our neighbouring municipalities. While most have been completed, we are hoping to finalize the remaining documents in early 2020.
City of Brooks – The document was reviewed at the IDP committee meeting August 13, 2019. The County is waiting to receive edits from the City of Brooks in order to move forward and finalize the document.
Special Areas – Dillon Consulting has received edits from Special Areas and are working on the final draft.
Cypress County – Cypress County gave second reading to the IDP on December 3, 2019. County of Newell held a public hearing on December 5, 2019. Dillion Consulting is working on amending some wording in the document to better reflect the meaning of native grassland.
Solar Facilities
1. Elemental Energy Renewables Inc – Brooks Solar II Power Plant• The company plans to construct and operate a 26.5-megawattsolar power plant in the County of Newell, just north of the city of Brooks.• AUC Public Hearing was held on December 3, 2019. Many neighbouring landowners spoke against the project. A decision on the application will be issued by March 3, 2020.
2. Duchess Solar Project and Rock Lake Substation• ENGIE Developments is continuing to consult with stakeholders and will submit an update to the AUC by March 31, 2020.• The current AUC application is incomplete until ENGIE provides a glare analysis report, the final project layout and major equipment list.
PLANNING & DEVELOPMENT REPORT
County of Newell - 2019 Annual Financial Report Page 37
PLANNING & DEVELOPMENT REPORT
Development Permits
Our department strives to make development within the County as streamlined as possible. We have
been reviewing our internal procedures and reviewing how we can make the process more efficient.
Educating the public is a priority in 2020, including Land Use Bylaw policies, rules regarding development,
and development on road allowances.
The department reviewed 97 Development Permit Applications in 2019 and responded to many
inquiries. Development included 2 hydrovac slurry drying and disposal projects, a substantial addition
to the Scandia Honey Company, a new school in Tilley and the Canalta development north of the
City of Brooks. MPC approved one new solar facility near Tilley and the Planning and Development
department has received inquiries from other companies looking at the possibility of developing within
the County.
Development Permits
Our department strives to make development within the County as streamlined as possible. We have been reviewing
our internal procedures and reviewing how we can make the process more efficient. Educating the public is a priority
in 2020, including Land Use Bylaw policies, rules regarding development, and development on road allowances.
The department reviewed 97 Development Permit Applications in 2019 and responded to many inquiries.
Development included 2 hydrovac slurry drying and disposal projects, a substantial addition to the Scandia Honey
Company, a new school in Tilley and the Canalta development north of the City of Brooks. MPC approved one new
solar facility near Tilley and the Planning and Development department has received inquiries from other companies
looking at the possibility of developing within the County.
Development Permit Applications by Year
2014 2015 2016 2017 2018 2019
Residential 101 116 94 65 70 64
Non-Residential 30 22 33 24 24 31
Home Occupation 4 4 4 2 7 2
Total 135 142 131 91 101 97
Construction Permits
2019 saw a new Building Code take effect and the Private Sewage Disposal System (PSDS) Standard of Practice will be
updated in 2020. A 2019 study done by Park Enterprises, the County’s contract inspection agency, found that
approximately 70% of residential fire alarms failed during the final inspection. They are now providing education to
contractors and owners regarding fire alarm safety and adjusting their internal processes to address this.
Our department has been working with Park Enterprises to build on the construction permit enforcement process
and finalize the procedures to make sure the County is doing its due diligence as an accredited municipality.
0
2
4
6
8
10
12
14
16
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2019 Development Permits Applications
Residential Non-Residential Home Occupation 4 Year Average
Construction Permits
2019 saw a new Building Code take effect and the Private Sewage Disposal System (PSDS) Standard
of Practice will be updated in 2020. A 2019 study done by Park Enterprises, the County’s contract
inspection agency, found that approximately 70% of residential fire alarms failed during the final
inspection. They are now providing education to contractors and owners regarding fire alarm safety
and adjusting their internal processes to address this.
Our department has been working with Park Enterprises to build on the construction permit enforcement
process and finalize the procedures to make sure the County is doing its due diligence as an accredited
municipality.
County of Newell - 2019 Annual Financial ReportPage 38
PLANNING & DEVELOPMENT REPORT
The Planning and Development team endeavors to help landowners create living and working spaces
that are suitable to the site and won’t negatively affect others around them. We are working to improve
our processes and procedures in order to provide the best service we can.
Respectfully Submitted,
Maria Jackson, Supervisor of Planning & Development
Construction
Permits 2019 2018 2017 2016 2015 Average
(5 year)
Building 55 73 70 83 94 75
Electrical 163 198 153 182 205 180
Gas 57 64 72 64 92 70
Plumbing 28 57 48 69 63 53
PSDS 16 17 18 22 28 20
Total 319 409 361 420 482 398
Construction
Permit
Value
2019 2018 2017 2016 2015 Average
Value
Building $82,544 $89,188 $46,528 $61,025 $72,044 $70,266
Electrical $51,736 $59,816 $150,343 $32,607 $46,965 $68,293
Gas $6,735 $8,920 $7,683 $6,425 $9,595 $7,872
Plumbing $4,315 $8,910 $7,170 $10,320 $9,235 $7,990
PSDS $5,800 $5,600 $4,900 $6,900 $9,700 $6,580
Total $151,129 $172,434 $216,624 $117,277 $147,539 $161,001
The Planning and Development team endeavors to help landowners create living and working spaces that are suitable
to the site and won’t negatively affect others around them. We are working to improve our processes and procedures
in order to provide the best service we can.
__________________________________________________________________ Respectfully Submitted by Maria Jackson, Supervisor of Planning and Development
0
10
20
30
40
50
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2019 Construction Permits
Building Electrical Gas Plumbing PSDS
County of Newell - 2019 Annual Financial Report Page 39
Photo by D. Wiebe
Page 40
Photo by A. Ferguson
Page 41County of Newell - 2019 Annual Financial Report
section 2
CONSOLIDATED
FINANCIAL STATEMENTS
Page 42
Photo by S. Luchies
County of Newell - 2019 Annual Financial Report Page 43
CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT
The consolidated financial statements are the responsibility of the management of the County of Newell.
These consolidated financial statements have been prepared from information provided by management.Financial statements are not precise since they include certain amounts based on estimates and judgments.Management has determined such amounts on a reasonable basis in order to ensure that the consolidatedfinancial statements are presented fairly, in all material respects.
The County maintains systems of internal accounting and administrative controls that are designed to providereasonable assurance that the financial information is relevant, reliable and accurate and that the County's assetsare properly accounted for and adequately safeguarded.
The elected Council of the County is responsible for ensuring that management fulfils its responsibilities for
financial statements.Council carries out its responsibility principally through the Finance and Administration andGeneral Services committees.
The Council meets annually with management and the external auditors to discuss internal controls over thefinancial reporting process, auditing matters and financial reporting issues, and to satisfy itself that each party isproperly discharging its responsibilities.Council also considers the engagement or re-appointment of the externalauditors.Council reviews the monthly financial reports.
The consolidated financial statements have been audited by Avail LLP Chartered Professional Accountants, theexternal auditors, in accordance with Canadian generally accepted auditing standards on behalf of the Council,residents and ratepayers of the County. Avail LLP has full and free access to the Council.
Chief Administrative Officer Treasurer
3
County of Newell - 2019 Annual Financial ReportPage 44
CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITORS' REPORT
To:The Mayor and Members of Council oftheCounty of Newell
OpinionWe have audited the consolidated financial statements of the County of Newell which comprise the consolidatedstatement of financial position as at December 31, 2019, and the consolidated statements of financial activities,change in net financial assets and cash flow for the year then ended, and notes to the financial statements,including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, thefinancial position of the County of Newell as at December 31, 2019, and its results of operations and its cash flowsfor the year then ended in accordance with Canadian public sector accounting standards.
Basis for OpinionWe conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilitiesunder those standards are further described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the County in accordance with the ethical requirementsthat are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our otherethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial StatementsManagement is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with Canadian public sector accounting standards, and for such internal control as managementdetermines is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the County’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the County or to cease operations, orhas no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the County’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the consolidated financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includesour opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with Canadian generally accepted auditing standards will always detect a material misstatement whenit exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards,we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
1
County of Newell - 2019 Annual Financial Report Page 45
CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITORS' REPORT, continued
·Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error, asfraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.
·Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the County’s internal control.
·Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.
·Conclude on the appropriateness of management’s use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on the County’s ability to continue as a going concern.If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the company to cease to continueas a going concern.
·Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.
Report on Other Legal and Regulatory Requirements
·Debt Limit Regulation:In accordance with Alberta Regulation 255/2000, we confirm that the County is in compliance withthe Debt Limit Regulation. A detailed account of the County's debt limit can be found in note 16.
·Supplementary Accounting Principles and Standards Regulation:In accordance with Alberta Regulation 313/2000, we confirm that the County is in compliance withthe Supplementary Accounting Principles and Standards Regulation and note the informationrequired can be found in note 15.
Lethbridge, Alberta
April 9, 2020 Chartered Professional Accountants
2
County of Newell - 2019 Annual Financial ReportPage 46
CONSOLIDATED FINANCIAL STATEMENTS
4
COUNTY OF NEWELL
Consolidated Statement of Financial Position
December 31, 2019, with comparative information for 2018
2019 2018
Financial Assets:Cash and cash equivalents (note 2)$ 26,681,744 $ 3,349,499Taxes and grants in place of taxes receivable (note 3)1,321,064 1,700,222Trade and other receivables (note 4)7,417,461 12,149,564Land held for resale 19,748 19,748Investments (note 5)72,655,027 81,671,584Other financial assets -6,495
Total Financial Assets 108,095,044 98,897,112
Financial Liabilities:
Accounts payable and accrued liabilities 2,205,551 4,212,382Employee benefit obligations (note 7)1,470,819 1,580,098Unearned revenue (note 8)230,488 297,964Long-term debt - capital (note 9)9,648,333 14,882,255Provision for landfill closure and post-closure costs (note 10)340,388 361,378Provision for gravel pit closure and post-closure costs (note 10)416,059 416,059Deposit liabilities (note 2)307,215 269,291Other financial liabilities 83,156 -
Total Financial Liabilities 14,702,010 22,019,427
Net Financial Assets 93,393,034 76,877,685
Non-Financial Assets:Prepaid expenses 145,106 131,631Tangible capital assets (note 6)195,333,426 199,229,568Inventory for consumption 1,773,602 2,139,527
Total Non-Financial Assets 197,252,134 201,500,726
Contingent liabilities (note 18)
Accumulated surplus (note 11)$290,645,168 $278,378,411
The accompanying notes are an integral part of these consolidated financial statements.
County of Newell - 2019 Annual Financial Report Page 47
CONSOLIDATED FINANCIAL STATEMENTS
5
COUNTY OF NEWELL
Consolidated Statement of Financial Activities
Year ended December 31, 2019, with comparative information for 2018
Budget 2019 2018
Revenues:Net municipal property taxes (note 12)$ 33,147,891 $ 29,653,558 $ 32,982,614Special levies 127,413 118,918 114,362User fees and sale of goods 2,478,647 3,939,006 3,310,758Government transfers (note 13)776,986 4,149,246 685,888Penalties and cost of taxes 143,000 321,397 280,078Investment income 1,184,000 2,788,328 2,000,408Licenses and permits 157,500 185,448 213,321Other revenue 131,900 558,461 421,622Gain (loss) on disposal of tangiblecapital assets -(35,551)102,936
Total Revenues 38,147,337 41,678,811 40,111,988
Expenses (note 14):Legislative 575,433 478,695 467,697Administration4,807,011 4,245,460 4,405,774Corporate safety services 464,121 428,417 318,794Fire and by-law enforcement 1,865,387 1,725,647 1,172,017Disaster and emergency services 303,495 221,852 244,948Roads, streets, walks and lighting 12,300,842 11,133,537 11,411,031Airport145,908 115,718 111,071Water and wastewater 3,238,909 2,878,882 2,925,322
Waste management 336,084 335,958 470,972Family and community support 66,755 65,755 64,466Municipal planning 684,934 545,420 479,191Community and agricultural services 2,122,058 1,808,897 1,783,155Subdivision land and development 240,464 197,438 186,695Recreation and parks 1,012,259 915,686 828,494Culture and library 161,745 161,745 160,653Other55,000 575,027 158,034
Total Expenses 28,380,405 25,834,134 25,188,315
Annual surplusbefore the undernoted 9,766,932 15,844,677 14,923,673
Other:Contributed to other governments (4,355,870)(4,420,725)(6,319,496)Government transfers (note 13)861,563 842,805 99,880
Annual surplus (deficit)6,272,625 12,266,757 8,704,057
Accumulated surplus, beginning of year 278,378,411 278,378,411 269,674,354
Accumulated surplus, end of year $284,651,036 $290,645,168 $ 278,378,411
The accompanying notes are an integral part of these consolidated financial statements.
County of Newell - 2019 Annual Financial ReportPage 48
CONSOLIDATED FINANCIAL STATEMENTS
6
COUNTY OF NEWELL
Consolidated Statement of Change in Net Financial Assets
December 31, 2019, with comparative information for 2018
Budget 2019 2018
Annual surplus (deficit)$ 6,272,625 $ 12,266,757 $ 8,704,057
Acquisition of tangible capital assets (6,842,643)(3,319,320)(4,382,530)Contributed (transferred) tangible capital assets ---Proceeds on disposal of tangible capital assets -142,425 614,248Amortization of tangible capital assets 7,153,441 7,037,486 6,916,087(Gain) loss on disposal of tangible capital assets -35,551 (102,936)
6,583,423 16,162,899 11,748,926
Use (acquisition) of inventories for consumption (1,400,000)365,925 (969,406)Use (acquisition) of prepaid expenses -(13,475)(12,802)
Change in net financial assets 5,183,423 16,515,349 10,766,718
Net financial assets, beginning of year 76,877,685 76,877,685 66,110,967
Net financial assets, end of year $82,061,108 $ 93,393,034 $ 76,877,685
The accompanying notes are an integral part of these consolidated financial statements.
Photo by J. Plett
County of Newell - 2019 Annual Financial Report Page 49
CONSOLIDATED FINANCIAL STATEMENTS
7
COUNTY OF NEWELL
Consolidated Statement of Cash Flows
Year ended December 31, 2019, with comparative information for 2018
2019 2018
Cash provided by (used in):Operations:Annual surplus (deficit)$ 12,266,757 $ 8,704,057Items not involving cash:Amortization 7,037,486 6,916,087Loss (gain) on disposal of tangible capital assets 35,551 (102,936)Change in non-cash financial assets and liabilities:Taxes and grants in place of taxes receivable 379,158 (387,545)Trade and other receivables 4,732,103 2,670,663Land held for resale -11,743Other financial assets 6,495 3,324Prepaid expenses (13,475)(12,802)Inventory for consumption 365,925 (969,406)Accounts payable and accrued liabilities (2,006,831)1,805,115Employee benefit obligations (109,279)(24,893)Unearned revenue (67,476)275,964Landfill closure and post-closure costs (20,989)(301,157)Gravel pit closure and post-closure costs -84,245Other financial liabilities 83,156 -
22,688,582 18,672,459Capital activities:Proceeds on disposal of tangible capital assets 142,425 614,248
Purchase of tangible capital assets (3,319,320)(4,382,531)
(3,176,895)(3,768,283)Investing activities: Decrease (increase) in investments 9,016,556 (9,121,706)Payments received on notes receivable -789,542
9,016,556 (8,332,164)Financing activities:Repayment of long-term debt:- operating -(789,542)- capital (5,233,923)(5,138,389)Increase (decrease) in deposit liabilities 37,924 56,883
(5,195,999)(5,871,048)
Increase (decrease) in cash and cash equivalents 23,332,244 700,964Cash and cash equivalents, beginning of year 3,349,499 2,648,535
Cash and cash equivalents, end of year (note 2)$ 26,681,744 $ 3,349,499
Cash and cash equivalents is comprised of:
Cash $ 26,681,744 $ 3,349,499
$ 26,681,744 $ 3,349,499
The accompanying notes are an integral part of these consolidated financial statements.
County of Newell - 2019 Annual Financial ReportPage 50
CONSOLIDATED FINANCIAL STATEMENTS
8
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
1. Significant accounting policies:
The consolidated financial statements of the County of Newell (the “County”) are the
representations of management prepared in accordance with Canadian Public Sector accounting
standards. Significant aspects of the accounting policies adopted by the County are as follows:
(a) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and short-term deposits which are highly
liquid with original maturities of less than three months from the date of acquisition.
(b) 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.
(c) 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.
(d) Investments:
Investments are recorded at amortized cost. Investment premiums and discounts are
amortized over the life of the respective investments. 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. Gains on principal protected notes are recognized as income when sold.
(e) 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.
County of Newell - 2019 Annual Financial Report Page 51
CONSOLIDATED FINANCIAL STATEMENTS
9
COUNTY OF NEWELL
Notes to Consolidated Financial StatementsYear ended December 31, 2019
1. Significant accounting policies (continued):
(f) 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.
(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 provide for post-closure care. Landfill 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 based on usage.
The County is required to fund the closure of its gravel pits. Reclamation of these sites
includes providing final cover and landscaping. The requirement is being provided for on an
estimate of expected cost on size of sites.
(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.
(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 15-45Buildings25-70Engineered structures 15-75Machinery and equipment 5-40Vehicles5-14
Assets under construction are not amortized until the asset is available for productive
use.
County of Newell - 2019 Annual Financial ReportPage 52
CONSOLIDATED FINANCIAL STATEMENTS
10
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
1. Significant accounting policies (continued):
(i) Non-financial assets (continued):
(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) Tax Revenue:
Tax revenue results from non-exchange transactions that are paid to governments in
accordance with the laws and regulations established to provide revenue to the government
for public services. The revenue is recognized when the tax has been authorized and the
taxable event has occurred.
(k) Pension expenses:
The County participates in a multi-employer defined benefit pension plan, wherein
contributions for current and past service pension benefits are recorded as expenses in the
year in which they become due.
(l) Use of estimates:
The preparation of the financial statements in conformity with Canadian public sector
accounting standards 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 date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Significant areas requiring the use of management
estimates relate to the determination of allowance for doubtful accounts, provision for closure
and post-closure care, employee benefit obligations and the useful life 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.
County of Newell - 2019 Annual Financial Report Page 53
CONSOLIDATED FINANCIAL STATEMENTS
11
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
1. Significant accounting policies (continued):
(m) Contaminated sites:
Contaminated sites are a result of contamination being introduced into air, soil, water or
sediment of a chemical, organic or radioactive or live organism that exceeds an
environmental standard. The liability is recorded net of any expected recoveries. A liability for
remediation of a contaminated site is recognized when a site is not in productive use and is
management’s estimate of the cost of post-remediation including operation, maintenance and
monitoring. No contaminated sites have been identified.
2. Cash and cash equivalents:
2019 2018
Cash $ 26,681,744 $ 3,349,499
$ 26,681,744 $ 3,349,499
Included in cash are amounts aggregating $307,214 (2018 - $269,291) not available for currentuse.
2019 2018
Tax sale surplus $28,125 $20,879Public reserve 267,781 248,412Bow City Cemetery Perpetual Care Fund 11,308 -
$ 307,214 $ 269,291
County of Newell - 2019 Annual Financial ReportPage 54
CONSOLIDATED FINANCIAL STATEMENTS
12
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
3. Taxes and grants in place of taxes receivable:
2019 2018
Current $ 998,879 $ 819,359Arrears981,685 1,009,363
1,980,564 1,828,722Allowance for uncollectible taxes (659,500)(128,500)
$ 1,321,064 $ 1,700,222
4. Trade and other receivables:
2019 2018
Grants $ 495,219 $ 2,632,716Local improvement taxes 4,930,592 5,294,765Other1,991,650 4,222,083
$ 7,417,461 $ 12,149,564
Local improvement taxes carry annual interest rates ranging from 2.64% - 4.44% and are duebetween 2020 – 2041.
5. Investments:
2019 2018
Fixed income securities $ 69,584,764 $ 78,601,321
Credit Union Common shares 7 7Newell Regional Services Corporation:
Common shares 20 20Preferred shares 3,070,236 3,070,236
3,070,263 3,070,263
$ 72,655,027 $ 81,671,584
Fixed income securities have effective interest rates of 2.50% to 3.00% with maturity dates from
March 2020 through December 2029. The fixed income securities have an aggregate market
value of $69,887,759 (2018 - $77,086,341).
County of Newell - 2019 Annual Financial Report Page 55
CONSOLIDATED FINANCIAL STATEMENTS
13
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
6. Tangible capital assets:
Cost 2018 Additions Disposals 2019
Land $ 5,368,261 $--$(9,600) $ 5,358,661Land improvements 2,037,162 20,267 -- 2,057,429Buildings 21,066,038 58,000 -- 21,124,038Engineered structures 226,608,678 1,984,760 (11,503)228,581,935Machinery and equipment 11,240,486 383,166 (327,424) 11,296,228Vehicles 6,425,239 171,781 (295,396) 6,301,624Work in progress, netof transfers 2,331,942 701,346 -- 3,033,288
Total $ 275,077,806 $ 3,319,320 $ (643,923)$277,753,203
Accumulated Amortizationamortization2018Disposalsexpense 2019
Land improvements $ 1,096,066 $--$130,334 $ 1,226,400Buildings 2,068,499 -- 354,468 2,422,967Engineered structures 64,152,344 (8,043) 5,067,295 69,211,600Machinery and equipment 5,982,192 (245,509) 987,532 6,724,214Vehicles 2,549,137 (212,395) 497,857 2,834,597
Total $ 75,848,238 $ (465,947) $ 7,037,486 $ 82,419,777
Net book value 2019 2018
Land $ 5,358,661 $ 5,368,261Land improvements 831,029 941,096Buildings 18,701,071 18,997,539Engineered structures 159,370,339 164,456,334Machinery and equipment 4,572,013 5,258,294Vehicles 3,467,025 3,876,102Work in progress 3,033,288 2,331,942
Total $ 195,333,426 $ 199,229,568
Contributed tangible capital assets are recognized at fair value at the date of contribution.
County of Newell - 2019 Annual Financial ReportPage 56
CONSOLIDATED FINANCIAL STATEMENTS
14
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
7. Employee benefit obligations:
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.
Sick
The sick liability is comprised of the sick pay that employees are deferring to future years.
Employees have either earned the benefits (and are vested) or are entitled to them within the
next budgetary year.
8. Unearned Revenue:
2019 2018
Government contributions $83,392 $ 163,445Prepaid taxes 107,878 134,519Other39,218 -
Total $ 230,488 $ 297,964
Government contributions in unearned revenue consist of the following:
Recognized asDescription2018Receivedrevenue 2019
ACP $ 141,374 $2,125 $ (80,392) $ 63,106FGTF- 863,669 (861,563)2,106Other22,071 18,180 (22,071)18,180
Total $ 163,445 $ 883,974 $ (964,026) $ 83,392
County of Newell - 2019 Annual Financial Report Page 57
CONSOLIDATED FINANCIAL STATEMENTS
15
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
9. Long-term debt – capital:
2019 2018
Tax supported debentures $ 9,648,333 $ 14,882,255
Principal and interest repayments are due as follows:
Principal Interest Total
2020 $ 3,651,630 $ 209,611 $ 3,861,241
2021 2,482,572 141,266 2,623,83820221,845,476 81,869 1,927,3452023623,877 47,872 671,749202462,110 34,163 96,273Thereafter982,668 251,336 1,234,004
$ 9,648,333 $ 766,117 $ 10,414,450
Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates
ranging from 1.124% to 3.406% per annum and matures in periods 2019 through 2042. The
average annual interest rate is 2.357% for 2019 (2018 – 2.179%). Debenture debt is issued on
the credit and security of the County of Newell at large.
Interest on long-term debt amounted to $295,745 (2018 - $391,373).
The County’s total interest paid in 2019 was $300,226 (2018 - $395,760).
10. Provision for landfill and gravel pit closure and post-closure costs:
Alberta environmental law requires closure and post-closure care of landfill sites, which includes
final covering and landscaping, pumping of ground water and leachates from the site, and on-
going environmental monitoring, site inspections and maintenance.
The accrued liability for the remaining post-closure costs of the County’s landfill and closure and
post-closure costs for the County’s gravel pits are based on an estimate of future discounted
costs. All landfill sites are closed. One site is expected to be reclaimed in 2020, while post-closure
costs associated on another are not expected until 2028.
The estimated closure and post-closure costs for the landfill are $340,388 and $416,059 for the
gravel pits, all of which have been accrued in the financial statements.
County of Newell - 2019 Annual Financial ReportPage 58
CONSOLIDATED FINANCIAL STATEMENTS
16
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
11. Accumulated surplus:
Equity in
tangibleUnrestrictedcapital Restricted Total Totalnet assets assets (1)Surplus (2)2019 2018
Beginningbalance $ 3,130,730 $184,347,313 $90,900,368 $278,378,411 $269,674,354Annual surplus(deficit)12,266,757 ----12,266,757 8,704,057Transfers torestricted surplus (17,009,796)--17,009,796 ----Transfers fromrestricted surplus 11,080,010 -- (11,080,010)----Amortization oftangible capitalassets 7,037,486 (7,037,486)------Net book valueof assets disposed 177,977 (177,977)------Capital assetsinternallyfunded (3,319,320)3,319,320 ------Debt paid - capital (5,233,923)5,233,923 ------
Total $ 8,129,921 $185,685,093 $96,830,154 $290,645,168 $278,378,411
(1)Equity in tangible capital assets:
2019 2018
Tangible capital assets (note 6)$ 277,753,204 $ 275,077,806Accumulated amortization (note 6)(82,419,778)(75,848,238)Long-term debt – capital (note 9)(9,648,333)(14,882,255)
$ 185,685,093 $ 184,347,313
County of Newell - 2019 Annual Financial Report Page 59
CONSOLIDATED FINANCIAL STATEMENTS
17
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
11. Accumulated surplus (continued):
(2) Restricted surplus is comprised of funds internally restricted as follows:
2019 2018
Paving $ 3,971,925 $ 1,851,997Infrastructure49,231,522 46,001,809Future Projects 10,232,443 15,711,327Vehicles, Machinery & Equipment 12,129,527 10,972,276Regional Enhancement 2,258,874 2,258,874Stabilization5,000,000 3,150,000Facilities3,357,238 3,114,988Fire Apparatus 4,453,508 3,756,959Recreation4,233,046 2,825,027Tilley50,662 50,662Unexpended Budget Appropriation 1,911,408 1,206,449
$ 96,830,154 $ 90,900,368
12. Net municipal property taxes:
Budget 2019 2018
Taxation: Real property taxes $ 16,981,675 $ 16,779,251 $ 17,683,991 Linear property taxes 29,663,407 26,204,690 28,442,234 Government grants in place of property taxes 388,143 376,684 380,191
47,003,225 43,360,625 46,506,416
Requisitions: Alberta School Foundation Fund 12,722,041 12,573,774 12,517,231 Newell Foundation 901,241 901,241 901,696 Designated Industrial Property 232,052 232,052 104,874
13,855,334 13,707,067 13,523,801
Net municipal property taxes $ 33,147,891 $ 29,653,558 $ 32,982,614
County of Newell - 2019 Annual Financial ReportPage 60
CONSOLIDATED FINANCIAL STATEMENTS
18
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
13. Government transfers:
Budget 2019 2018
Transfers for operating: Provincial government $ 387,247 $ 3,867,691 $ 448,368 Local government 389,739 281,555 237,520
776,986 4,149,246 685,888
Transfers for capital: Provincial government 861,563 842,805 99,880
Local government ---
861,563 842,805 99,880
$ 1,638,549 $ 4,992,051 $ 785,768
14. Expenses by object:
Budget 2019 2018
Salaries, wages and benefits $ 8,635,436 $ 7,933,001 $ 7,893,075 Contracted and general services 4,773,619 3,430,120 3,793,283 Materials, goods, supplies and utilities 5,585,296 4,690,632 4,497,636 Transfers to organizations 1,883,887 1,874,628 1,608,763 Bank charges and short-term interest 8,500 11,502 6,407 Interest on long-term debt 300,226 295,746 423,942 Other expenditures 40,000 561,018 49,120 Amortization 7,153,441 7,037,486 6,916,087
$ 28,380,405 $ 25,834,134 $ 25,188,315
County of Newell - 2019 Annual Financial Report Page 61
CONSOLIDATED FINANCIAL STATEMENTS
19
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
15. 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:
2019 2018
Benefits &Salary (1)Allowances (2)Total Total
Council: Division 1 - Amulung $ 30,378 $ 5,380 $ 35,758 $ 36,317 Division 2 - Kallen 29,655 6,487 36,141 32,996 Division 3 - Philipsen 31,822 6,641 38,462 40,786 Division 4 - Hammergren 24,915 3,411 28,326 27,624 Division 5 - Fyfe 24,142 6,097 30,239 32,326 Division 6 - Christman 25,670 6,207 31,877 32,783 Division 7 - Unruh 26,347 6,252 32,599 37,848 Division 8 - De Jong 28,804 2,195 30,999 30,262 Division 9 - Douglass 42,636 3,212 45,848 46,057 Division 10 - Juss 24,942 6,153 31,095 32,578
$ 298,309 $ 52,035 $ 341,344 $ 349,577
Chief Administrative Officer $ 229,620 $ 51,776 $ 281,396 $ 273,545
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.
County of Newell - 2019 Annual Financial ReportPage 62
CONSOLIDATED FINANCIAL STATEMENTS
20
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
16. Debt limits:
Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined byAlberta Regulation 255/00 for the County be disclosed as follows:
2019 2018
Total debt limit $ 62,518,217 $ 60,325,292Total debt (9,648,333)(14,882,255)
Unused debt limit $ 52,869,884 $ 45,443,037
2019 2018
Debt servicing limit $ 10,419,703 $ 10,054,215Debt servicing (3,861,241)(5,534,150)
Unused debt servicing limit $ 6,558,462 $ 4,520,065
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.
17. 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 265,813
people and about 421 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 9.39% of
pensionable earnings up to the year’s maximum pensionable earnings under the Canada Pension
Plan and 13.84% on pensionable earnings above this amount. Employees of the County are
required to make current service contributions of 8.39% of pensionable salary up to the year’s
maximum pensionable salary and 12.84% on pensionable salary above this amount.
Total current service contributions by the County to the LAPP in 2019 were $541,429 (2018 -
$591,344). Total current service contributions by the employees of the County to the LAPP in
2019 were $491,755 (2018 - $541,737).
At December 31, 2018, the LAPP disclosed an actuarial surplus of $3.5 billion.
County of Newell - 2019 Annual Financial Report Page 63
CONSOLIDATED FINANCIAL STATEMENTS
21
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
18. Contingent liabilities:
The County of Newell is a member of the Alberta Municipal Insurance Exchange (MUNIX). Under
the terms of membership, the County of Newell 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. Contractual Obligations:
The County of Newell has entered into an agreement with the Province of Alberta to upgrade the
roadway surface of Highway 876 to a paved standard. Under the terms of the agreement the
County and the Province agree to share the project costs on a 50/50 basis. Remaining estimated
costs for the project total $12,000,000. The project is expected to be finished in 2020 with the
County’s share of the remaining costs estimated around $6,000,000.
The County has agreed to provide funding of up to $850,000 to the City of Brooks for the Hort
Main Pipeline Expansion project which is expected to be complete in 2020.
20. Recent accounting pronouncements:
The Public Sector Accounting Board recently announced the following accounting
pronouncements:
(a) Financial instruments:
This section establishes recognition, measurement, and disclosure requirements for
derivative and non-derivative instruments. The standard requires fair value measurements of
derivative instruments and equity instruments; all other financial instruments can be
measured at either cost or fair value depending upon elections made by the government.
Unrealized gains and losses will be presented on the new statement of remeasurement gains
and losses arising from the adoption of PS 1201. There will also be a requirement to disclose
the nature and extent of risks arising from financial instruments and clarification is given for
the de-recognition of financial liabilities. As the Municipality does not invest in derivatives or
equity instruments based on its investment policy, it is anticipated that the adoption of this
standard will have a minimal impact on the Municipality. This standard is effective for fiscal
years beginning on or after April 1, 2021.
(b) Foreign currency translation:
This section establishes guidance on the recognition, measurement, presentation and
disclosure of assets and liabilities denominated in foreign currencies. The Section requires
monetary assets and liabilities, denominated in a foreign currency and non-monetary items
valued at fair value denominated in a foreign currency to be adjusted to reflect the exchange
rates in effect at the financial statement date. The resulting unrealized gains and losses are
to be presented in the new statement of remeasurement gains and losses. This standard is
effective for fiscal years beginning on or after April 1, 2021.
County of Newell - 2019 Annual Financial ReportPage 64
22
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
20. Recent accounting pronouncements (continued):
(c) Financial statement presentation:
The implementation of this standard requires a new statement of re-measurement gains and
losses separate from the statement of operations. This new statement will include the
unrealized gains and losses arising from the remeasurement of financial instruments and
items denominated in a foreign currency. This standard is effective for fiscal years beginning
on or after April 1, 2021.
(d) Asset retirement obligations:
Under this new standard, an asset retirement obligation (ARO) is a legal obligation
associated with the retirement of a tangible capital asset controlled by a public sector entity.
An ARO will include post-retirement operation, maintenance, and monitoring costs. A liability
will be recognized when specific criteria are met, with a corresponding increase to the
carrying amount of the related tangible capital asset, and expensing the amount in a rational
and systematic manner. This new standard will replace the current standard for “Liability for
Contaminated Sites” and will be effective for fiscal years beginning on or after April 1, 2021.
(e) Revenue:
The new standard establishes overall guidance on how to account for and report revenue.
The standard makes a distinction between transactions that include performance obligations
(exchange transactions) and those that do not (non- exchange transactions). A performance
obligation is an enforceable promise to provide specific goods or services to a specific payor.
Revenue from transactions with performance obligations is recognized as the public sector
entity satisfies a performance obligation by providing the goods or services to a payor. Once
a performance obligation is identified, an assessment is needed to determine whether
revenue recognition occurs over a period of time or at a point in time. This standard is
effective for fiscal years beginning on or after April 1, 2022.
Management is assessing the impact of the adoption of these standards which is not known or
reasonably estimable at this time.
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2019 Annual Financial Report Page 6523
COUNTY OF NEWELL
Notes to Consolidated Financial Statements
Year ended December 31, 2019
21. Segmented Disclosures:
Segmented disclosures (Schedule 1) are intended to enable users to better understand the
government reporting entity and the major expense and revenue activities of the County.
The segments have been selected based upon functional activities provided by the County. For
each reported segment, revenues and expenses represent both amounts directly attributable to
the segment and amounts that are allocated on a reasonable basis. The functional areas that
have been separately disclosed, along with the services they provide are as follows:
(a) General government is comprised of Council, Legislative, Corporate Administration,
Finance, Information and Computer Services, Planning, Economic Development,
Corporate Safety, Agricultural Services, Fire and Disaster Services, Bylaw Enforcement,
Community Services, Recreation, Parks and Programs and Library.
(b) Public Works and Transportation is comprised of Roads and Engineering Services.
(c) Public Utilities is comprised of Water, Wastewater and Solid Waste.
22. Comparative information:
Certain comparative information has been reclassified from those previously presented to
conform to the presentation of the 2019 financial statements.
23. Budget information:
The budget information presented in these consolidated financial statements is based upon the
2019 budget approved by Council on April 11, 2019.
24. Subsequent event:
COVID-19
The global coronavirus pandemic has had a significant impact on global financial markets and
will have significant accounting, disclosure, and internal control implications for many entities.
Some of the key impacts include, but are not limited to, interruptions of production and supply
chains, unavailability of personnel, reductions in revenue, decline in value of financial
investments, disruptions or stoppages in non-essential travel, and the closure of facilities and
businesses.
The situation is changing rapidly and the future impact on the County is not readily determinable
at this time.
25. Approval of financial statements:
These financial statements were approved by Council and Management.
CONSOLIDATED FINANCIAL STATEMENTS
County of Newell - 2019 Annual Financial ReportPage 66
SCHEDULE OF SEGMENTED DISCLOSURES
COUNTY OF NEWELL Schedule 1
Schedule of Segmented Disclosures
Year ended December 31, 2019, with comparative information for 2018
GeneralGovernment
Public WorksandTransportation Public Utilities Total2019 GeneralGovernment
Public WorksandTransportation Public Utilities Total2018
Revenue
Net taxes for municipal purposes 29,653,558$-$-$29,653,558$32,982,614$-$-$32,982,614$Special levies --118,918 118,918 --114,362 114,362User Fees and sale of goods 1,958,423 356,937 1,623,646 3,939,006 1,399,689 342,769 1,568,300 3,310,758
Government transfers - operating 4,069,334 25,749 54,163 4,149,246 579,286 -106,602 685,888
Penalties and costs of taxes 321,397 --321,397 280,078 --280,078
Investment income 2,788,328 --2,788,328 2,000,408 --2,000,408License and permits 185,448 --185,448 213,321 --213,321Other430,432 2,116 125,913 558,461 333,799 20,895 66,928 421,622
Gain (loss) on disposal of capital assets (24,311)(7,780)(3,460)(35,551)58,294 44,642 -102,936
39,382,609 377,022 1,919,180 41,678,811 37,847,489 408,306 1,856,192 40,111,988
ExpensesSalaries, wages and benefits 5,167,663 2,765,338 -7,933,001 5,110,027 2,783,048 -7,893,075Contracted and general services 1,611,737 1,056,843 761,540 3,430,120 1,621,797 1,388,185 783,302 3,793,284
Materials, goods, supplies and utilities 1,540,811 2,136,237 1,013,585 4,690,632 1,320,242 2,104,693 1,072,702 4,497,637
Transfer to Organization 1,855,148 -19,480 1,874,628 1,584,293 -24,470 1,608,763
Bank charges and short term interest 11,502 --11,502 6,407 --6,407Interest on long-term debt --295,746 295,746 32,569 -391,373 423,942Other expenditures 560,868 -150 561,018 49,019 97 3 49,119
Amortization 1,228,515 4,684,632 1,124,339 7,037,486 1,154,578 4,637,066 1,124,443 6,916,087
11,976,244 10,643,050 3,214,840 25,834,134 10,878,932 10,913,089 3,396,293 25,188,315
Annual surplus (deficit)before the undernoted 27,406,365 (10,266,028)(1,295,660)15,844,677 26,968,557 (10,504,783)(1,540,101)14,923,673
Other
Contributed to other governments -(4,420,725)-(4,420,725)-(6,319,496)-(6,319,496)Contributed assets --------Government transfers - capital -842,805 -842,805 -99,880 -99,880
Annual surplus (deficit)27,406,365$(13,843,948)$(1,295,660)$12,266,757$26,968,557$(16,724,399)$(1,540,101)$8,704,057$
24
Photo by D. Wiebe
Page 67County of Newell - 2019 Annual Financial Report
Photo by A. Hickey
Page 68
section 3
STATISTICAL SECTION
County of Newell - 2019 Annual Financial Report Page 69
Demographics & Other StatisticsSTATISTICAL SECTION
Demographics & Other Statistics
Photo by A. Hickey
County of Newell - 2019 Annual Financial ReportPage 70
Expenses by ObjectSTATISTICAL SECTION
Expenses by Object
Significant items driving variances in total expenses trends across the period include:
Salaries, wages and benefits:
• Increases are due to annual cost-of-living adjustments and staff movement up the salary grid.
Contracted and general services:
• Gravel road/drainage repairs and maintenance $519 thousand higher than average in 2015.
Materials, goods, supplies and utilities:
• Landfill reclamation costs of $372 thousand and bridge repairs of $200 thousand in 2017.
• Increasing water usage charges from NRSC as additional water users access the rural system
($154 thousand in 2015 to $368 thousand in 2019).
• AFFRCS radios purchased in 2019 at $323 thousand.
Transfers to organizations:
• Transfer of insurance proceeds to the Village of Duchess in 2015 ($1.1 million).
• Transfers under the Regional Enhancement & Cooperation Agreement to other municipalities in the
County of Newell in 2015 ($1.8 million), 2016 ($2.3 million), and 2017 ($330 thousand).
Other expenditures:
• $1.1 million employee sick time liability arising from a policy change in 2016;
• Adjustment to MSI grant funding receivable of $765 thousand in 2017.
• Adjustment to the allowance for doubtful property taxes receivable of $561 thousand in 2019.
Amortization:
• Total cost of tangible capital assets (net of work-in-progress assets) has increased from $229
million in 2015 to $275 million in 2019 which drives the increasing annual amortization expense.
Expenses by Object
Significant items driving variances in total expenses trends across the period include:
Salaries, wages and benefits:
• Increases are due to annual cost-of-living adjustments and staff movement up the salary grid.
Contracted and general services:
• Gravel road/drainage repairs and maintenance $519 thousand higher than average in 2015.
Materials, goods, supplies and utilities:
• Landfill reclamation costs of $372 thousand and bridge repairs of $200 thousand in 2017.
• Increasing water usage charges from NRSC as additional water users access the rural system
($154 thousand in 2015 to $368 thousand in 2019).
• AFFRCS radios purchased in 2019 at $323 thousand.
Transfers to organizations:
• Transfer of insurance proceeds to the Village of Duchess in 2015 ($1.1 million).
• Transfers under the Regional Enhancement & Cooperation Agreement to other municipalities in the
County of Newell in 2015 ($1.8 million), 2016 ($2.3 million), and 2017 ($330 thousand).
Other expenditures:
• $1.1 million employee sick time liability arising from a policy change in 2016;
• Adjustment to MSI grant funding receivable of $765 thousand in 2017.
• Adjustment to the allowance for doubtful property taxes receivable of $561 thousand in 2019.
Amortization:
• Total cost of tangible capital assets (net of work-in-progress assets) has increased from $229
million in 2015 to $275 million in 2019 which drives the increasing annual amortization expense.
County of Newell - 2019 Annual Financial Report Page 71
Expenses by FunctionSTATISTICAL SECTION
Expenses by Function
Expenses by Function
County of Newell - 2019 Annual Financial ReportPage 72
Revenues by SourceSTATISTICAL SECTION
Revenues by Source
Property taxes continue to be the most significant source of revenue for the County, comprising from 74% to 84% of
total operating revenues over the period reported above. A few of the more significant items driving variances in total
revenue trends across the period include:
• Government transfers for operating and capital, which are dependent on other levels of government;
• Insurance proceeds received in 2015 for the Duchess Soccer Centre which was destroyed by fire;
• Contributed assets received from the Tilley Fire Association in 2016;
• Special levies, which include local improvement taxes, and depend on local improvement projects
completed in a given year; and
• Proceeds received from bonding companies for contract completion of the Regional Water Project which
have been included in Other revenue in 2015.
Photo by D. Bouvier