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HomeMy WebLinkAbout2015 Annual Report - long version (High Res) 2015 ANNUAL FINANCIAL REPORT COUNTY OF NEWELL, ALBERTA, CANADA FOR THE YEAR ENDING DECEMBER 31, 2015 C OUNTY OF N EWELL, A LBERTA, C ANADA 2015 ANNUAL FINANCIAL REPORT F OR THE FISCAL PERIOD ENDING D ECEMBER 31, 2015 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: ADMINISTRATION Telephone: 403-362-3266 E-Mail: administration@newellmail.ca The 2015 Annual Financial Report is available online at www.countyofnewell.ab.ca Photo by Sandra Stanway (Brooks Bulletin) P AGE 2 C OUNTY OF N EWELL - 2013 A NNUAL F INANCIAL R EPORT TABLE OF CONTENTS SECTION 1 T HE C OUNTY OF N EWELL Vision & Mission 7 County Council 9 Organizational Chart 10 SECTION 2 R EPORT FROM THE M ANAGER OF F INANCE Introduction14 GFOA Canadian Award for Financial Reporting 14 Management Reporting & Control 15 Financial Indicators Discussion & Analysis 16 SECTION 3 C ONSOLIDATED F INANCIAL S TATEMENTS Management’s Responsibility for the Consolidated Financial Statements 29 Independent Auditors’ Report 30 Consolidated Statement of Financial Position 32 Consolidated Statement of Financial Activities 33 Consolidated Statement of Change in Net Financial Assets 34 Consolidated Statement of Cash Flows 35 Notes to Consolidated Financial Statements 36 Schedule of Segmented Disclosures 53 SECTION 4 F INANCIAL & S TATISTICAL S ECTION Demographic Statistics 56 Expenses by Function 57 Expenses by Object 57 C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 3 P AGE 4 C OUNTY OF N EWELL - 2013 A NNUAL F INANCIAL R EPORT SECTION 1 THE COUNTY OF NEWELL C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 5 P AGE 6 C OUNTY OF N EWELL - 2013 A NNUAL F INANCIAL R EPORT 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. Photo by Sandra Stanway (Brooks Bulletin) C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 7 COUNTY PROFILE The County of Newell is a rural municipality (5900 sq. km.) located in southeast Alberta in an area northeast of the City of Lethbridge. The largest urban communities within the County are the City of Brooks and the Town of Bassano. The County provides a number of services – directly or jointly with other municipalities – to the residents protection, garbage disposal, planning and development administration, agricultural services, recreation and parks, family and community support services and bylaw enforcement. 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 1500 non-agricultural business enterprises within the County and its municipalities. The County of Newell has a thriving and extensive agricultural base with ready access to Calgary and its global transportation linkages. With a younger work force and average farm receipts in the range of $100,000 to $249,999, the region is home to Alberta. The County has one of Alberta’s most 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 and recreation activity as diverse as hunting, and wildlife watching. Business costs are low. Quality of life is high – with a full range of recreation, health and cultural amenities. P AGE 8C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT COUNTY COUNCIL DIVISION 1 Rolling Hills DIVISION 2 Tilley DIVISION 3 Patricia/Millicent DIVISION 4 Rainier/Scandia/Bow City DIVISION 5 Cassils/Lake Newell Resort Clarence Amulung Councillor Gordon Simpson Councillor Anne Marie PhilipsenCouncillor Tracy Fyfe (403) 964-2292(403) 377-2596(403) 793-2076 amulungc@newellmail.casimpsong@newellmail.caphilipsena@newellmail.cahammergrenw@newellmail.cafyfet@newellmail.ca DIVISION 6 Bassano DIVISION 7 Rosemary DIVISION 8 Duchess DIVISION 9 Gem DIVISION 10 Brooks Councillor Kelly ChristmanCouncillor Ellen UnruhCouncillor Brian de JongReeve Molly DouglassCouncillor Lionel Juss (403) 641-2274(403) 641-2562 christmank@newellmail.caunruhe@newellmail.cadejongb@newellmail.cadouglassm@newellmail.cajussl@newellmail.ca C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 9 ORGANIZATIONAL CHART DIRECTOR OF MANAGER OF AGRICULTURAL AGRICULTURAL REEVE SERVICES CHIEF SERVICES ADMINISTRATIVE & OFFICER COUNCIL DIRECTOR OF INFORMATION & TECHNOLOGY MANAGER OF PLANNING & EXECUTIVE DEVELOPMENT ASSISTANT MANAGER OF DIRECTOR OF DIRECTOR OF OPERATIONS MUNICIPAL CORPORATE SERVICES MANAGER OF SERVICES CORPORATE SAFETY SERVICES MANAGER OF ENGINEERING MANAGER OF SERVICES FINANCE MANAGER OF MUNICIPAL FIRE & ENFORCEMENT EMERGENCY MANAGER OF SUPERVISOR SERVICES ECONOMIC DEVELOPMENT C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 10 P AGE 12 C OUNTY OF N EWELL - 2013 A NNUAL F INANCIAL R EPORT SECTION 2 REPORT FROM THE MANAGER OF FINANCE C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 13 REPORT FROM THE MANAGER OF FINANCE I NTRODUCTION activities and available resources. It also provides an opportunity to analyze and comment on the GFOA C ANADIAN A WARD FOR F INANCIAL R EPORTING In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an 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 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. P AGE 14C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT REPORT FROM THE MANAGER OF FINANCE M ANAGEMENT R EPORTING & C ONTROL process, accounting procedures, external audit, and various policies which are described below. Budget Process 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 After the budget is adopted by Council, expenditures are controlled against budget by formal purchasing Accounting Procedures The County’s accounting system and related internal controls are designed to provide reasonable 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 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. Purchasing Policy The County ensures that consistent procedures are followed for purchases through Purchasing Policy 2011-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. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 15 REPORT FROM THE MANAGER OF FINANCE Investment Policy The County’s excess funds are invested in accordance with Investment Policy 2014-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 F INANCIAL I NDICATORS D ISCUSSION & A NALYSIS The 2015 Consolidated Financial Statements are prepared in compliance with Public Sector Accounting by applying PSAB issued Statement of Recommended Practices (SORP) 4: Indicators of Financial the County in maintaining the programs and services it currently provides, as well as the policy and 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 andvulnerability well as a selection of indicators related to each. P AGE 16C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT REPORT FROM THE MANAGER OF FINANCE SUSTAINABILITY Sustainability measures the ability of the County to maintain its existing programs and services, The following indicators have been selected to assess sustainability. This annual result indicates the extent to which the County’s revenue is more than its expenses during over time, expenses are less than revenues. In essence, this requires current taxpayers to fully meet the cost of services. replacement. On an annual basis 50% of the annual amortization charge for facilities and infrastructure, and 100% of the annual amortization charge for vehicles, machinery and equipment is raised from municipal tax revenues and transferred to restricted surplus funds. Amortization expense, which is into account future replacement costs in determining the appropriate level of surplus is a critical step C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 17 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 revenues or increasing debt to pay for past decisions. years as annual principal payments on debt decrease the County’s liability balance. P AGE 18C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT REPORT FROM THE MANAGER OF FINANCE Taxes Receivable as a % of Tax Levies 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. Total Tax Levy (includes requisitions) 38,077,534 40,131,740 37,906,610 37,798,648 38,571,559 40,464,388 41,536,602 42,780,809 Taxes Receivable (before allowance) Current 297,544 279,540 389,320 427,744 411,923 588,708 600,093 695,806 Arrears 386,589 436,631 532,931 452,891 498,988 627,660 770,179 462,904 684,133 716,171 922,251 880,635 910,911 1,216,368 1,370,272 1,158,710 Taxes Receivable as a % of the Current Levy Current 0.78%0.70%1.03%1.13%1.07%1.45%1.44%1.63% Arrears1.02%1.09%1.41%1.20%1.29%1.55%1.85%1.08% Taxes Collected - Current Year99.22%99.30%98.97%98.87%98.93%98.55%98.56%98.37% Taxable Assessment3,814,704,390 4,151,150,920 3,898,515,520 3,879,853,980 3,990,255,860 4,209,007,890 4,324,192,910 4,413,249,420 Municipal Tax Rates Residential and Farmland3.33%3.33%3.33%3.33%3.33%3.33%3.33%3.39% Non-residential6.69%6.70%6.70%6.71%6.71%6.71%6.71%6.77% C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 19 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 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. 20082009201020112012201320142015 Debt servicing costs990,667990,6672,942,7556,336,321 Revenues 31,595,642 30,061,642 35,375,534 39,265,145 Ratio3.16%3.07%3.29%3.30%9.05%14.23%16.14% costs-to-revenues. Debt servicing costs rose in conjunction with the issuance of $6 million in debentures to fund the rural water project. This ratio is expected to remain relatively consistent until 2019 when it is expected to begin decreasing as debentures for the rural water project are repaid. P AGE 20C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT REPORT FROM THE MANAGER OF FINANCE Debt Limits and Debt Payments Regulation 255/00. The maximum allowable debt the County could hold within this regulation is maximum allowable amount at the end of 2015. This leaves the County with approximately $27.3 million of borrowing room. 20082009201020112012201320142015 Debt limit Maximum allowable debt45,193,52945,092,463 Total debt6,737,9716,104,9145,445,21221,594,16130,054,42231,604,643 Percentage used15.1%13.5%12.1%44.3%44.0%55.0%53.7% Maximum allowable annual debt payment7,532,2557,515,4119,111,471 Annual payments on existing debt990,667990,6672,942,7556,336,321 Percentage used12.3%12.3%13.2%13.2%36.2%34.3%56.9%64.5% 1,0699497673,4014,210 Population*7,1017,1017,101 * Source: Alberta Municipal Affairs Statistics Profile projects as more of the debt limit has been used. 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. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 21 REPORT FROM THE MANAGER OF FINANCE R ESTRICTED S URPLUS Restricted Surplus funds are included as part of the County’s accumulated surplus and details of these Stabilize tax rates in the face of variable and uncontrollable factors (consumption, interest rates, unemployment rates, changes in subsidies) 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 Avoid spikes in funding requirements of the capital plan by reducing thereliance on long Provide for future liabilities incurred in the current year but paid for in the future 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 Economic conditions and projections Internal debt and restricted surplus policies surplus funds listed below. The County is in compliance with this policy as at December 31, 2015. Balance at Minimum Balance % of minimum Dec. 31, 2015Required balance held Infrastructure19,921,17312,604,291 Vehicles, Machinery & Equipment7,244,9606,299,965115% Stabilization202% Facilities2,464,260 Fire Apparatus250,000759% P AGE 22C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT REPORT FROM THE MANAGER OF FINANCE Tangible Capital Assets $13,530,533 – Rural Water System $2,960,042 – Tilley Sanitary System $2,059,779 – Road Reconstruction $1,672,640 – EID Drainage Partnership $1,349,734 – Paving projects 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, 2015 approximately 79% of the County’s assets useful lives remain available to provide its services. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 23 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 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. transfers. It is important to note that the majority of these government transfers have been used for part on grant funding from other levels of government. 20082009201020112012201320142015 26,771,730 9,710,706 16,044,107 2,141,579 1,733,210 1,601,670 1,073,512 933,439 Total transfers 14,925,517 11,005,520 7,414,210 16,977,546 Total revenue 40,733,249 49,326,774 57,142,957 Government transfers-to-total revenue25.9%47.6%33.1%39.4%25.6%16.1%24.1%29.7% 79.7%93.9%93.6%91.0%94.5% 20.3%6.1%10.7%6.4%12.0%9.0%5.5% its reliance on government transfers for operating to support its products and services. Respectfully Submitted, Matt Fenske, CA Manager of Finance April 7, 2016 C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 24 C OUNTY OF N EWELL - 2013 A NNUAL F INANCIAL R EPORT Photo by Henry Zuniga Photo by Sandra Stanway (Brooks Bulletin) P AGE 26 C OUNTY OF N EWELL - 2013 A NNUAL F INANCIAL R EPORT SECTION 3 CONSOLIDATED FINANCIAL STATEMENTS C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 27 Photo by Will Schaap P AGE 28 C OUNTY OF N EWELL - 2013 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS MANAGEMENTÓS RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 29 CONSOLIDATED FINANCIAL STATEMENTS P AGE 30C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Photo by Sandra Stanway (Brooks Bulletin) C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 31 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statement of Financial Position December 31,2015, with comparative informationfor 2014 20152014 Financial assets: Cash and cash equivalents (note 2) $ $ 27,474,293 Taxes and grants in place of taxes receivable (note 3) 1,,7101,270,272 Trade and other receivables(note 4)23,127,51510,364,492 Land held for resale 35,139 Investments (note 5) 42,262,136 Notes receivable (note 6) 2,995,066 Other financial assets Financial liabilities: Accounts payable and accrued liabilities3,3,764,931 Employee benefit obligations (note )405,626415,962 Unearned revenue (note 9) 1,442,461 Long-term debt - operating(note 10) 2,919,673 Long-term debt - capital (note 11) 29,357,35527,134,749 Provision for landfill closureand post-closure costs (note 12) 317,901330,466 Provision for gravel pit closureand post-closure costs (note 12) 350,594315,376 Depositliabilities(note 2) 243,991233,692 36,634,53936,557,310 Net financial assets 52,365,506 Non-financial assets: Prepaid expenses 106,111 Tangible Capital Assets (note 7) Inventory for consumption 1,719,459 Contingent liabilities (note 20) Accumulated surplus(note 13) $275, $ The accompanying notes are an integral part of these consolidated financialstatements. P AGE 32C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statement of Financial Activities Year ended December 31, 2015, with comparative informationfor 2014 Budget20152014 Revenues: Net municipal property taxes (note 14) $ $ $ Special levies 1,159,264 User fees and sale of goods 1,597,279 11,666,294 Government transfers (note 15) 733,790933,4391,073,512 Penalties and cost of taxes131,775250,591 Investment income 1,592,2901,654,240 Licenses and permits 151,600 Other revenue 164,4102,061,463 Gain (loss) on disposal of tangible capital assets-(5,403) 34,272,71939,265,14536 Expenses (note 16): Legislative490,200477,619494,612 Administration4,130,921 Corporate safety services Fire andby-law enforcement 1,452,592 Disaster and emergency services 225,523197,126 Roads, streets, walks and lighting Airport 124,235123,604 Water and waste water1,935,2152,123,647 Waste management 306,155 Family and community support 65,46664,46664,466 Municipal planning526,626 Community and agricultural services Subdivision land and development 363,370342,342 Recreation and parks Culture andlibrary 152,756152,759151,400 Other1,990,237 3,093,7111,469,629 27,377,352 26,25,930,641 Annual surplus before the undernoted6,7 12,420,29910,515,241 Other: Contributed assets-13,407- Insurance proceeds-62,969 Government transfers (note 15) 4,915,43316,044,107 Other-743,6152,006,616 Annual surplus0 23,396,133 Accumulated surplus, beginning of year221,455,143 Accumulated surplus, end ofyear$256,662,076 $275 $ The accompanying notes are an integral part of theseconsolidated financial statements. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 33 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statement of Change in Net Financial Assets December 31, 2015, with comparativeinformationfor 2014 Budget20152014 Annual surplus$0 $ 30, $ 23,396,133 Acquisition of tangible capital assets(23,924,401) (25,9,)(27,293,957) Contributed tangible capital assets-(13,407)- Proceeds on disposal of tangible capital assets-593,747 Amortization of tangible capital assets4,679,3465,744,761 (Gain) loss on disposal of tangible capitalassets - 5,403 (7,434,255) Use (acquisition)of inventories for consumption-(414,619)304,035 Use (acquisition)ofprepaid expenses-(4)(19,770) Change innet financial assets(7,434,265) Net financial assets, beginning of year40,412,495 Net financial assets, end ofyear$403 $ 52,365,506 $ The accompanying notes are an integral part of these consolidated financialstatements. P AGE 34C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT 3 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statement of Cash Flows YearendedDecember 31, 2015, with comparative informationfor 2014 20152014 Cash provided by (used in): Operations: Annual surplus$ 30, $ 23,396,133 Items not involving cash: Amortization5,744,761 Contributed assets(13,407)- (Gain) losson disposal of tangible capital assets(75,403 Change in non-cash financial assets and liabilities: Taxes and grants in place of taxes receivable211,561(153,904) Trade and other receivables(12,763,023)) Land held for resale- Other financial assets(1,655) Prepaid expenses ()(19,770) Inventory for consumption (414,619)304,035 Accounts payable and accrued liabilities(236,131)) Employee benefit obligations (10,336)53,231 Unearned revenue (1,259,477)(25,679) Landfill closure and post-closure costs(12,565)(7,431) Gravel pit closure and post-closure costs- 20,795,71624,941,010 Capital activities: Proceeds on disposal of tangible capital assets593,747 Cash used to acquire tangible capital assets (25,)(27,293,957) (24,722,017)(26,700,210) Investingactivities: Decrease in temporaryinvestments7,956,675 Decrease (increase)in investments(6,423,046)(2,546,733) Payments received on notes receivable 2,363,0105,242,322 Financingactivities: Repayment of long-term debt: -operating()(909,194) -capital (3,777,394)(2,160,797) Proceeds from debt issues 6,000,000 Increase (decrease) in deposit liabilities 10,299(1,392) 1,560,520 Increase(decrease) in cashand cash equivalents(2,771) Cash and cash equivalents, beginning of year7,363,612 Cash and cash equivalents, end ofyear(note 2)$ $ Cash and cash equivalents is comprised of: Cashandtemporary investments$ 19,514 $ 27,474,293 Less investmentswith original maturities greater than 90 days() () $ 16,61 $ 16,621, The accompanying notes are an integral part of these consolidatedfinancial statements. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 35 CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 1. 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 cost. Where there has been a loss in value of an investment other than a temporary decline, the investment is written down to reflect the loss. (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. P AGE 36C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS ELL Notes to Consolidated Financial Statements Year ended December 31, 2015 1. (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 forover 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 15-45 Buildings 25-70 Engineered structures 15-75 Machinery and equipment 5-40 Vehicles 5-14 Assets under construction are not amortized until the asset is available for productive use. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 37 CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 1. (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 andrecorded 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 tangiblecapital 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 standardsrequires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dateof the financial statements and the reported amounts of revenues and expensesduring 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. P AGE 38C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 1. (m) Adoption of new accounting policy: 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 equivalents 20152014 Cash$ 16, $ Temporary investments $ $ 27,474,293 Included in cash are amounts aggregating $243,991(2014 - $233,692) not available for current use. Also included in cash and temporary investments is $424,957(2014 - $)of unexpended debt proceeds. 20152014 Tax sale surplus $ 12,661 $ 12,539 Public reserve 231,330221,153 $ 243,991 $ 233,692 Temporary investments consist of GIC’s that havean average interest rate of 2.05% (2014– 1.93%) and mature in periods ranging from April, 2016to August, 2016. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 39 CONSOLIDATED FINANCIAL STATEMENTS L Notes to Consolidated Financial Statements Year ended December 31, 2015 3. 20152014 Current year $ $ 600,093 Arrears 462,904770,179 1,,7101,370,272 Allowance for uncollectible taxes(100,000)(100,000) $ 1,05 $ 1,270,272 4. Trade and other receivables 20152014 Grants$ 16,144,745 $ Local improvement taxes2,459,349 Other1, $ 23,127,515 $ 10,364,492 Local improvement taxes carry annual interest rates ranging from 2.64% -7.125% and are due between 2016 –2034. 5. 20152014 Fixed income securities$ 42,177,933 $ Credit Union Common shares5 5 Newell Regional Services Corporation: Common shares 20 20 Preferred shares $ 42,262,136 $ Fixed income securities yield interest from 1.34% to 4.95% and mature in periods 2016 through 2025. The investmentshave an average expected yield of 2.45% andan aggregate market value of $(2014 - $). P AGE 40C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 6. 20152014 Newell Foundation, repayable in annual installments of $$ $ 2,919,673 Tilley and District Fire Association, repayable in annual installments of $96,327 including interest at 3.497%,433,492511,917 maturing in 2020. Newell Regional Services Corporation, non-interest bearing, maturing in 2017. $ 2,995,066 $ 7. Cost2014AdditionsDisposals2015 Land$ 5,420,350 $ -- $ $ 5,353, Land improvements 33, -- Buildings -- Engineeredstructures (61,551) Machinery and equipment 9,777,696 (75,003) 11, Vehicles (455,172) Work in progress, net of transfers (1,166,927) 50,126,103 Total$ 254,644,553 $ 25,972,240 $ (1,167,726) $279,449,067 AccumulatedAmortization amortization2014Disposalsexpense2015 Landimprovements $ $ -- $ 120,423 $ 701,541 Buildings954,590 Engineeredstructures (42,195) 50,417,164 Machinery and equipment 3,404,107 (66,904) 4,265,416 Vehicles2,044,312 () 2,034,550 Total$ 53,415,004 $ (669,009) $ 5,744,761 $ C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 41 CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 7. Net book value20152014 Land $ 5, $ 5,420,350 Land improvements 1,164,111 1,251,416 Buildings 17,425,667 17,900,962 Engineeredstructures 116,765,604 Machinery and equipment 7,063,152 6, Vehicles 2,953,659 Work in progress 50,126,103 Total $ 22 $ Contributed tangible capital assets are recognized at fair value at the date of contribution. The value of contributed assets received during the year is $13,407 (2014 –nil)and has been included in engineered structures. 8. loyee 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) andare entitled to these benefits within the next budgetary year. 9. Recognized as Description2014Additionsrevenue2015 RCP Grant (Tilley) $ 596,705 $ -- $ (596,705) $ -- Street Improvement Grant173,520 -- -- 173,520 MSI Capital (Tilley) -- -- Other 9 (32,491) 9,464 Total$ 1,442,461 $ $ (1,) $ P AGE 42C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 10. Long-term debt – 20152014 Debenture supported with notes receivable $ $ 2,919,673 Principal and interest repayments are due as follows: PrincipalInterest Total 2016$ 709,366 $ 123,601 $ 2017 43,425 $ $ 251,612 $ Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at 5.5%per annum, before Provincial subsidy, and matures in . Debenture debt is issued on the credit and security of the Countyof Newell at large. Interest on long-term debt amounted to $151,337 (2014– $206,279). The County’s total cash payments for interest in 2015were $(2014 - $). 11.Long-term debt – 20152014 Tax supported debentures $ 29,357,355 $ 27,134,749 Principal and interest repayments are due as follows: PrincipalInterest Total 2016 $ 4,942,931 $ 560,423 $ 5,503,355 20175,034,6305,503,355 5,121,407375,1655,496,572 20195,496,572 20203,633,522190,142 Thereafter5,726,492 $ 29,357,355 $ 2,192,654 $ 31,550,009 C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 43 CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 11. Long-term debt – Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates ranging from 1.124% to 7.125% per annum, before Provincial subsidy, and matures in periods 201through 2034.The average annual interest rate is % for 2015 (2014–2.209%). For qualifying debentures, the Prov 11% to a maximum annual rate of 12.5%, depending on the date borrowed. Debenture debt is issued on the credit and security of the Countyof Newell at large. Interest on long-term debt amounted to $574,770 (2014 - $494,256). The County’s total cash payments for interest in 2015were $ (2014 - $490,152). 12. - 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 will be reclaimed in 2016, while post-closure costs associated on anot The estimated closure and post-closure costs for the landfill are $317,901and $350,594for the gravel pits, all of which have been accrued in the financial statements. The County has not designated assets for settling closure and post-closure liabilities. P AGE 44C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 13. Equity in tangible Unrestrictedcapital Restricted TotalTotal net assetsassets(1)Surplus(2)20152014 Beginning balance $ 1,932,102 $ $ $ $221,455,143 Annual surplus---- 23,396,133 Transfers to restricted surplus ()------ Transfers from restricted surplus15,415,334-- (15,415,334)---- Amortization of tangible capital assets5,744,761 (5,744,761)------ Net book value of assets disposed ()------ Capital assets internally funded (,430)12,3,430------ Capital assets debt funded (13,575,403)13,575,403------ Contributed assets(13,407)13,407--- Debt issued6,000,000 (6,000,000)------ Unexpended debt7,575,402(7,575,402)------ Debt paid(3,777,393)3,777,393------ Total$ 0 $192,025,553 $ $275, $ (1) Equity in tangible capital assets: 20152014 Tangible capital assets$ 279,449,067 $ 254,644,553 Accumulated amortization()(53,415,005) Long-term debt (note 11)(29,357,355)(27,134,749) Unexpended debtproceeds424,597 $ 192,025,553 $ C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 45 CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 13. (2)Restricted surplusiscomprised of funds internally restricted as follows: 20152014 Paving $ 7,260,029 $ Infrastructure19,921,17313,633,516 Future Projects 23,773,760 Vehicles, Machinery & Equipment7,244,960 Regional Enhancement3,390,1613,421,192 Stabilization5, Facilities2,464,2601,133,647 Fire Apparatus Tilley Unexpended Budget Appropriation 203,1761,379,026 $ $ 14. Budget20152014 Taxation: Real property taxes $ 14,711,005$ $ 14,112,735 Linear property taxes 27,461,53527,113,790 Government grants in place of property taxes 310,077 41,536,602 Requisitions: Alberta School Foundation Fund12,12,529,76512,475,317 Newell Foundation 13,376,77313,262,744 Net municipal property taxes$ $ $ P AGE 46C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 15. Budget20152014 Transfers for operating: Provincial government $ 347,392 $ 535,630 $ Local government344,629 733,790933,4391,073,512 Transfers for capital: Provincial government 4,915,43316,044,107 Local government--27 4,915,43316,044,107 $ 5,649,223 $ 16,977,546 $ 16. Budget20152014 Salaries, wages and benefits $ $ 7,451,402 $ Contracted and general services 4,927,054 4,040,966 Materials, goods, supplies and utilities 5,043,1293,966,506 Transfers to organizations 3,775,104 Bank charges and short-term interest 1,5004,246 Interest on long-term debt753,690735,351700,535 Other expenditures 20,00054,114 Amortization4,679,3465,744,761 $ 27,377,352 $ 26, $ 25,930,641 C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 47 CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 17. Disclosure of salaries and benefits for elected municipal officials and the chief administrative officer as required by provincial regulation is as follows: 20152014 Benefits & Salary (1)Allowances (2)TotalTotal Council: Division 1 $ $ 4,697 $ 30,275 $ Division 231,2094,92636,13534,699 Division 331,6794,94536,62440,596 Division 429,6932,64432,33730,524 Division 533,07631,120 Division 630,6094,90135,51037,592 Division 734,12736,162 31,69533,213 Division 92,16554,01249,971 Division 1027,3574,76932,12634,736 $ 317,217 $ $ 357,435 $ Chief Administrative Officer $ 212,072 $ 49,797 $ $ 252,347 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. P AGE 48C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 18. Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by Alberta Regulation 255/00 for the County be disclosed as follows: 20152014 Total debt limit $ $ Total debt (31,604,643)(30,054,422) $ 27,293,075 $ 24,614,401 20152014 Debt servicing limit $ 9, $ 9,111,471 Debt servicing (6,336,321)) $ 3,479,965 $ 3,925,300 The debt limit is calculated at 1.5 times revenue of the County(as defined in Alberta Regulation 255/00) and the debt service limit is calculated at 0.25 times such revenue. Incurring debt beyond these limitations requires approval by the Minister of Municipal Affairs. These thresholds are guidelines used by Alberta Municipal Affairs to identify municipalities which could be at financial risk if further debt is acquired. The calculation takenalone does not represent the financial stability of the County. Rather, the financial statements must be interpreted as a whole. 19. 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 237,612 people and about423employers. 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 11.39% of pensionable earnings up to the year’s maximum pensionable earningsunder the Canada % on pensionable earnings above this amount. Employees of the County are required to make current service contributions of 10.39% of pensionable salary up to the year’s maximum pensionable salary and % on pensionable salary above this amount. Total current service contributions by the County to the LAPP in 2015were $609,423(2014 - $572,455). Total current service contributions by the employees of the County to the LAPP in 2015were $(2014 - $527,661). At December 31, 2014, the LAPP disclosed an actuarial deficiency of $2.4 billion. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 49 CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 20. 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. 21. 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, 2019. (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, 2019. (c) Related party transactions: This section provides guidance on the definition of a related party and establishes the disclosure requirements for transactions between related parties. This standard is effective for fiscal years beginning on or after April 1, 2017. P AGE 50C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 21. (d)Financial statement presentation: The implementation ofthis 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, 2019. Management is assessing the impact of the adoption of these standards which is not known or reasonably estimable at this time. 22.Segmented Disc 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. C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 51 CONSOLIDATED FINANCIAL STATEMENTS Notes to Consolidated Financial Statements Year ended December 31, 2015 23. Budgetinformation The budget information presented in these consolidated financial statements is based upon the 2015budget approved by Council on April 9, 2015. Adjustments to budgeted values were required to provide comparative budget values based on the full accrual basis of accounting. The following chart reconciles the approved budget with the budget information presented in these consolidated statements. Revenue: Approved budget: $ 70,346,430 Adjustments: Transfers from restricted surplus Transfers to organizations (13,376,773) Total budgeted revenue Expenses: Approved budget:70,346,430 Adjustments: Tangible capital assets (23,924,401) Debt principal repayments (3,652,514) Unfunded portion of amortization Transfers to restricted surplus () Transfers to inventory(765,000) Transfers to organizations (13,376,773) Total budgeted expenses 27,377,352 Budgeted annual surplus$ 24. Certain comparative information has been reclassified from those previously presented to conform to the presentation of the 2015 financial statements 25. These financial statements were approved by Council and Management. P AGE 52C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT SCHEDULE OF SEGMENTED DISCLOSURES Schedule 1 Schedule of Segmented Disclosures Year ended December 31, 2015, with comparative information for 2014 Public Works Public Works General and Total General and Total Government Transportation Public Utilities 2015Government Transportation Public Utilities 2014 Revenue Net taxes for municipal purposes$$-$-$$$-$-$ Special levies - 3,460,453 277,409 - User Fees and sale of goods 997,241 253,120 Government transfers - operating 749,745 - 933,439 17,406 317,971 1,073,512 Penalties and costs of taxes - - 250,591 - - 250,591 Investment income 1,592,290 - - 1,592,290 1,654,240 - - 1,654,240 License and permits - - - - Other 555,660 67,732 559,935 1,215,192 2,119,165 Gain (loss) on disposal of capital assets (77,612) 542 (5,945) - (5,403) 33,030,326 5,123,711 39,265,145 332,436 3,300,371 Expenses Salaries, wages and benefits - 7,451,402 4,623,191 2,753,594 - Contracted and general services 4,040,966 Materials, goods, supplies and utilities 1,231,125 711,522 3,966,506 1,494,453 2,316,390 1,016,264 Transfer to Organization - - - Bank charges and short term interest 4,246 - - 4,246 - - Interest on long-term debt - 574,769 735,351 206,279 - 494,256 700,535 Other expenditures - 12,619 41,495 - 54,114 Amortization 4,127,291 5,744,761 3,767,340 10,629,544 2,444,994 25,930,641 Annual surplus (deficit) before the undernoted 2,693,907 12,420,299 21,019,277 (11,359,413) 10,515,241 Other Insurance proceeds - - 62,969 - - 62,969 Contributed assets - 13,407 - 13,407 - - - - Government transfers - capital - 15,523,524 16,044,107 - 764,793 10,046,514 Other - - 743,615 743,615 - - 2,006,616 2,006,616 Annual surplus (deficit)$20,321,511$$$$$(10,594,620)$$23,396,133 C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 53 Photo by Sandra Stanway (Brooks Bulletin) P AGE 54 C OUNTY OF N EWELL - 2013 A NNUAL F INANCIAL R EPORT SECTION 4 STATISTICAL SECTION C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 55 STATISTICAL SECTION Demographics & Other Statistics 20082009201020112012201320142015 Population* 7,101 7,101 DECEMBER 31, 2015 2,957 3,145 3,205 Area in hectares 623,537 623,537 623,537 623,537 623,537 619,600 619,600 619,600 Continuous full-time employees 57 55 54 55 55 60 61 63 Debt supported by property taxes 504,421 425,150 349,691 17,115,017 27,134,749 29,357,355 Debt supported by notes receivable 6,233,550 5,679,764 5,095,521 4,479,144 2,919,673 Debt per capita 1,069949 767 3,401 4,210 Annual surplus 22,190,324 21,011,059 23,396,133 Accumulated surplus221,455,146 Net financial assets 51,696,054 55,022,926 53,214,934 53,559,230 42,553,303 40,412,495 52,365,506 Permits Issued: Building Permit 101 76 69 90 76 94 94 Electrical Permit 223 360 201 166 202 169 163 202 Gas Permit 112 57 61 67 97 92 Plumbing Permit 54 39 30 32 51 56 63 Private Sewage Permit 25 17 17 21 22 21 557 340 445 393 431 479 P AGE 56C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT STATISTICAL SECTION Expenses by Function & Expenses by Object 20082009201020112012201320142015 Legislative$ $ 419,156$ $ 456,142$ 433,035$ 456,097$ 494,612$ 477,619 Administration5,020,9402,900,4743,592,5374,130,921 Corporate safety services216,334236,523251,127260,472 Fire and bylaw enforcement953,9911,060,6901,452,592 Disaster and emergency services91,73312,314133,965145,619197,126 Roads, streets, walks and lighting9,722,194 Airport--90,641112,29792,701123,604 Water and waste water6,612,3542,906,2611,376,2772,123,647 Waste management233,743249,413255,619306,155 Family and community support41,21743,94964,46664,466 Municipal planning216,496526,626 Community and agricultural services1,300,551 Subdivision land and development15,700166,050171,491174,056265,710342,342363,370 Recreation and parks674,439701,270733,752731,661 Culture and library123,720137,222139,473151,400152,759 Other51,649(9,634)76,24537,4542,600,0131,469,6293,093,711 $20,074,374$32,034,619$$23,126,924$20,101,723$$25,930,641$ 20082009201020112012201320142015 Salaries, wages and benefits$ 5,395,633$ 5,499,995$ 5,731,502$ $ $ $ $ 7,451,402 Contracted and general services 4,314,291 6,532,596 4,949,447 4,040,966 Materials, goods, supplies and utilities2,217,314 2,009,729 1,935,961 2,495,296 4,007,534 3,966,506 Transfers to organizations 5,932,034 2,530,290 Bank charges and short-term interest 563 497 596 4,246 Interest on long-term debt 391,030 357,911 325,913 442,926 700,535 735,351 Other expenditures 70,262 225,294 125,926 54,114 Amortization 3,329,325 4,422,416 5,744,761 $20,074,374$32,034,619$$23,126,924$20,101,723$$25,930,641$ C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT P AGE 57 STATISTICAL SECTION Revenues by Source Revenues by Source REVENUES20082009201020112012201320142015 Net municipal property taxes$ $ 27,529,024$ 25,357,073$ 25,337,414$ 26,174,091 Special levies 725,363 711,4652,045,909 User fees and sale of goods 1,666,294 Government transfers 2,141,579 1,733,210 1,601,670 1,073,512933,439 Penalties and cost of taxes 76,391 250,591 Investment income 1,371,013 1,736,9931,541,3431,654,2401,592,290 Licenses and permits 31,495 27,125 30,700 70,292 166,302 Other revenue 122,375 271,655 1,565,7152,061,463 Gain (loss) on disposal of tangible capital assets 91,464 130,537 (123,751)365,342(5,403) Operating revenues 31,595,642 30,061,641 35,375,534 39,265,145 Other: Insurance proceeds - - - - - 1,450,000 62,969 Contributed from other local government - - - - - 2,795,262 - - Contributed assets 710,670 624,420 1,667,917 106,193 - - 13,407 Government transfers 26,771,730 9,710,706 16,044,107 Other - - - - - - 2,006,616 743,615 9,137,607 27,396,150 14,991,764 17,754,936 10,773,330 $ 40,733,249$ $ $ $ $ $ 49,326,774$ 57,142,957 Photo by Sandra Stanway (Brooks Bulletin) P AGE 58C OUNTY OF N EWELL - 2015 A NNUAL F INANCIAL R EPORT