The URL can be used to link to this page

Home My WebLink About2013 Annual Report - long versioni A&L ti ANNUAL FINANCIAL REPORT COUNTY OF NEWELL YV Wr` �- AM FOR THE YEAR ENDING DECEMBER 31, 2013 4L I ly I've. lei J 'o. Ir if. LIL*b COUNTY OF NEWELL, ALBERTA, CANADA 2013 ANNUAL FINANCIAL REPORT FOR THE FISCAL PERIOD ENDING DECEMBER 31, 2013 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 2013 Annual Financial Report is available online at www.countyofnewell.ab.ca TABLE OF CONTENTS SECTION 1 THE COUNTY OF NEWELL ❖ Vision & Mission 7 ❖ County Profile 8 ❖ County Council 9 ❖ Organizational Chart 10 SECTION 2 REPORT FROM THE MANAGER OF FINANCE ❖ Introduction 14 ❖ GFOA Canadian Award for Financial Reporting 14 ❖ Management Reporting & Control 15 ❖ Financial Indicators Discussion & Analysis 16 SECTION 3 CONSOLIDATED FINANCIAL STATEMENTS ❖ Management's Responsibility for the Consolidated Financial Statements 29 ❖ Independent Auditors' Report 30 ❖ Consolidated Statement of Financial Position 31 ❖ Consolidated Statement of Financial Activities 32 ❖ Consolidated Statement of Change in Net Financial Assets 33 ❖ Consolidated Statement of Cash Flows 34 ❖ Notes to Consolidated Financial Statements 35 ❖ Schedule of Segmented Disclosures 52 SECTION 4 FINANCIAL & STATISTICAL SECTION ❖ Demographic Statistics 56 ❖ Expenses by Function 57 ❖ Expenses by Object 57 ❖ Revenues by Source 58 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 0 N — —WON% �m emu om amomw In now& srF kr ow 0 N %Tqdpw qj t $f O a 9 40 J, 06 Ir SECTION 1 THE COUNTY OF NEWELL COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 5 ell 1p r ,ice"' VISION 8 MISSION STATEMENT VISION S TATEMEN T 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. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 7 COUNTY PROFILE The County of Newell is a rural municipality (5900 sq. km.) located in southeast Alberta in an area bounded by the City of Calgary 180 km east, 100 km west of the City of Medicine Hat, and 150 km 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 orjointly with other municipalities — to the residents of the rural area and Hamlets. These services include general administration and maintenance, fire protection, road maintenance, 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. PAGE 8 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 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. Business costs are low. Quality of life is high —with a full range of recreation, health and cultural amenities. AL a _ COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT COUNTY COUNCIL fM Z 0= N � t� 0 1 Clarence Amulung (403) 964-2292 amulungc@newellmail.ca 10 z, 0 3 Councillor Kelly Christman (403)641-2274 christmank@newellmail.ca N Z ! Z Z c 0 O O� N N o z N D= Dd Dm° Councillor Gordon Simpson CouncillorAnne Marie Philipsen Councillor Wayne Hammergren (403) 377-2596 (403) 378-4724 (403) 362-8223 simpsong@newellmail.ca philipsena@newellmail.ca hammergrenw@newellmail.ca OD z �, n, z r >> cLik Dom° Dc';ti F Councillor Ellen Unruh Councillor Brian de Jong (403) 378-4292 (403) 362-4587 unruhe@newellmail.ca dejongb@newellmail.ca 314 0 v v N z Z 00 >_ y U Councillor Tracy Fyfe (403)793-2076 fyfet@newellmail.ca 1 44 01 o z z 0 0 N N > E > o D0 Dm Reeve Molly Douglass Councillor Lionel Juss (403)641-2562 (403)362-5689 douglassm@newellmail.ca jussl@newellmail.ca COUNTY OF NEWELL — 2013 ANNUAL FINANCIAL REPORT PAGE ORGANIZATIONAL CHART REEVE CHIEF & ADMINISTRATIVE COUNCIL OFFICER u DIRECTOR OF @MANAGERAGRICULTURAL S . l0000�. DIRECTOR OF INFORMATION & TECHNOLOGY MANAGER OF PLANNING & EXECUTIVE DEVELOPMENT � ASSISTANT DIRECTOR OF DIRECTOR OF MANAGER OF CORPORATE MUNICIPAL OPERATIONS MANAGER OF SERVICES SERVICES CORPORATE SAFETY SERVICES OENGNEERNG MANAGER OF MANAGER OF FINANCE MUNICIPAL FIRE & ENFORCEMENT EMERGENCY (DEVELOPMENT NAGER OF SUPERVISOR SERVICES ONOMIC PAGE 10 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT d Wei F + v rE y • 4 r M n w 10 `" �_��.' • � �I ' S ,► � � X11, , „�P � � 1 it ? � � 10, i ilOL Photo by Russ S, r�— ._,'low is SECTION 2 REPORT FROM THE MANAGER OF FINANCE COUNTY OF NEWELL - 2013 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 2013 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. 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, 2012. 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 Government Finance Officers Association effort to clearly communicate the municipal government's financial picture, enhance Canadian Award an understanding of financial reporting by for municipal governments, and address user Financial Reporting needs Presented to A Canadian Award for Financial Reporting County of Newell is valid for a period of one year only. We believe our current report continues Alberta to conform to the Canadian Award for For its Annual Financial Reporting program requirements, Financial Report and we are submitting it to GFOA. for the Year Ended December 31, 2012 Executive Director/CEO PAGE 14 COUNTY OF NEWELL — 2013 ANNUAL FINANCIAL REPORT 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, investment and purchasing policies which are described below. Budaet Process On an annual basis, Council considers a proposed operating budget and a five year capital forecast and adopts the budget 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 purchasing policies and financial systems designed specifically to prevent budget overruns. Accountina 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 Bylaw and Budget variance policy 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. Investment Policv The County's excess funds are invested in accordance with Investment Policy 2008 -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. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT pm� ` 16 REPORT FROM THE MANAGER OF FINANCE Purchasina Policv 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. FINANCIAL INDICATORS DISCUSSION & ANALYSIS The 2013 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. 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. PAGE 16 Awl COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT 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 indicates 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 annual surplus in 2013 was $21,011,056 and supported investments made in tangible capital assets which increased in 2013 by a net $22,713,410 which exceeded the annual surplus by $1,702,354. Annual Surplus 2008-2013 $30,000,000 $25,000,000 $20,000,000 $15,000,000 - $10,000,000 $5,000,000 $- 2008 2009 2010 2011 2012 2013 The presence of an accounting surplus does not necessarily represent financial sustainability. While a surplus is clearly better than a deficit, the accounting surplus may not be large enough for future asset replacement. Amortization expense is based on historic cost and will not reflect the increased cost of replacement in the future. Taking into account future replacement costs in determining the appropriate level of surplus is a critical step toward financial sustainability. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT Gr- 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 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. Financial Assets -to -Liabilities 7.00 6.00 5.88 5.00 4.00 4 71 4.22 4.34 3.00 2.00 2.37 2.25 1.00 2008 2009 2010 2011 2012 2013 PAGE 18 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT 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. Total Tax Levy (includes requisitions) Taxes Receivable (before allowance) Cu rre nt Arrears Taxes Receivable as a % of the Current Levy Cu rre nt Arrears Taxable Assessment Municipal Tax Rates Residential and Farmland Non-residential 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2008 2009 2010 2011 2012 2013 38,077,534 40,131,740 37,906,610 37,798,648 38,571,559 40,464,388 297,544 279,540 389,320 427,744 411,923 588,708 386,589 436,631 532,931 452,891 498,988 627,660 684,133 716,171 922,251 880,635 910,911 1,216,368 0.78% 0.70% 1.03% 1.13% 1.07% 1.45% 1.02% 1.09% 1.41% 1.20% 1.29% 1.55% 3,814,704,390 4,151,150,920 3,898,515,520 3,879,853,980 3,990,255,860 4,209,007,890 3.33% 3.33% 3.33% 3.33% 3.33% 3.33% 6.69% 6.70% 6.70% 6.71% 6.71% 6.71% Taxes Receivable as a % of the Current Levy 2008 2009 2010 2011 2012 2013 9Current ,Arrears COUNTY OF NEWELL — 2013 ANNUAL FINANCIAL REPORT PAGE 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 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. 2008 2009 2010 2011 2012 2013 Debt servicing costs 998,560 998,560 990,667 990,667 2,942,755 3,518,232 Revenues 31,595,642 32,498,399 30,097,819 30,061,642 32,506,980 35,375,534 Ratio 3.16% 3.07% 3.29% 3.30% 9.05% 9.95% Debt Servicing Casts as a Percentage of Revenue V.00% 10.001) 1, 8.00% 6.00% 4.00% 2.00% v 0.00% 2008 2009 2410 7(3'I '1 )01 2053 The County's flexibility decreased in 2013 as illustrated by the increase in the ratio of debt servicing costs -to -revenues. Debt servicing costs rose with the issuance of $5,000,000 in debentures to fund the rural water project. PAGE 20 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT REPORT FROM THE MANAGER OF FINANCE 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 $55.2 million. The County held outstanding debt balances representing 44.0% of this maximum allowable amount at the end of 2013. This leaves the County with approximately $30,960,000 of borrowing room. 2008 2009 Debt limit 7,515,411 8,126,745 Maximum allowable debt 48,529,187 48,747,599 Total debt 7,338,304 6,737,971 Percentage used 15.1% 13.8% Maximum Allowable Annual Debt Payment 767 3,182 Maximum allowable annual debt payment 8,088,198 8,124,600 Annual payments on existing debt 998,560 998,560 Percentage used 12.3% 12.3% Debt Per Capita 1,069 949 Population 6,862 7,101 Source: Alberta Municipal Affairs Statistics Profile 2010 2011 2012 2013 45,193,529 45,092,463 48,760,469 55,238,301 6,104,914 5,445,212 21,594,161 24,278,145 13.5% 12.1% 44.3% 44.0% 7,532,255 7,515,411 8,126,745 9,206,384 990,667 990,667 2,942,755 3,518,232 13.2% 13.2% 36.2% 38.2% 860 767 3,182 3,401 7,101 7,101 6,786 7,138 The rise in debt per capita due to the issuance of an additional $5,000,000 of debentures in 2013 was offset somewhat by the increased population of the County. The population increase is attributable to the dissolution of the Village of Tilley which became a hamlet within the County as of August 31, 2013. Additional borrowing may be secured in 2014 to finance the County's rural water project while it waits to receive approved grant funding. This borrowing would be contingent on a favourable interest rate spread between the costs of borrowing and the return on the County's investments COUNTY OF NEWELL — 2013 ANNUAL FINANCIAL REPORT PAGE 21 REPORT FROM THE MANAGER OF FINANCE RESTRICTED SURPLUS Restricted Surplus is one component of the County's accumulated surplus and details of these balances are disclosed in note 12 to the financial statements. Accumulated surplus represents the County's net worth, or the net resources available to provide future services. Restrictions identify surplus funds for a specified future purpose as set by council through policy. Restricted surplus funds are a critical component of the County's long-term financing and capital plan. The County's Restricted Surplus Policy 2012 -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 58 • Provide for future liabilities incurred in the current year but paid for in the future •2 56 • Provide a source of internal financing 54 • Ensure adequate cash flows 52 Restricted surplus offers liquidity which enhances the 50 County's flexibility in addressing operating requirements and in permitting the County to temporarily fund capital 48 projects internally, allowing it time to access debt 46 markets and take advantage of favourable conditions. The level of restricted surplus funds required will vary for a number of reasons including: Restricted Surplus Balance 2008 2009 2010 2011 2012 2013 • 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 2012 -PAD -062 specifies minimum balances to be maintained forthe restricted surplus funds listed below. The County is in compliance with this policy as at December 31, 2013. Fund description Infrastructure Vehicles, Machinery & Equipment Stabilization Facilities Balance at Minimum Balance % of minimum Dec. 31, 2013 Required balance held 11, 917, 807 10, 749, 865 111% 5,764,056 5,396,589 107% 2,847,112 2,710,095 105% 913,490 547,697 167% Fire Apparatus 598,150 250,000 239% COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT REPORT FROM THE MANAGER OF FINANCE Tangible Capital Assets The County's tangible capital assets (TCA) increased by a net $22,713,410 in 2013 which includes new asset acquisitions of $28,105,247 offset by $4,422,416 in amortization expense and asset disposals with a net book value of $969,421. Included in TCAacquisitions is $1,829,915 in TCAreceived from the Village of Tilley on their dissolution. Other acquisitions were funded by grants received from the Province of Alberta, debenture borrowing, and draws on restricted surplus. 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, 2013 approximately 78% of the County's assets useful lives remain available to provide its services. 250 V) r- .2 200 150 100 50 Net Book Value of Tangible Capital Assets -to -Cost of Tangible Capital Assets 2008 2009 2010 2011 2012 2013 w NBV OF TCA COST OF TCA COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 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 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. 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Government Transfers -to -Total Revenue 2008 2009 2010 2011 2012 2013 The inset chart illustrates that a significant portion of total revenues are attributable to government transfers. The majority of these government transfers are used for financing major capital projects such as the Regional Water System and the Rural Water Distribution System. The County's ability to undertake such projects is largely dependent on grant funding from other levels of government. Government transfers for operating represent a significantly smaller portion of total government transfers to the County. Municipal Sustainability Initiative (MSI) funding for operating expenditures decreased in 2013 to $262,957 (2012 - $280,673). Decreases in MSI operating funding are expected to continue until the funding is removed entirely in 2017. 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, CA Manager of Finance - April 10, 2014 PAGE 24 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT 2008 2009 2010 2011 2012 2013 Government transfers for capital 8,426,937 26,771,730 13,323,847 17,648,743 9,710,706 6,528,068 Government transfers for operating 2,141,579 1,733,210 1,601,670 1,198,557 1,294,814 886,142 Total transfers 10,568,516 28,504,940 14,925,517 18,847,300 11,005,520 7,414,210 Total revenue 40,733,249 59,894,549 45,089,583 47,816,577 43,063,568 46,148,864 Government transfers -to -total revenue 259% 476% 331% 394% 256% 161% Transfers for capital -to -total transfers 797% 93.9% 893% 936% 882% 880% Transfers for operating -to -total transfers 203% 61% 107% 64% 118% 120% Government transfers for operating represent a significantly smaller portion of total government transfers to the County. Municipal Sustainability Initiative (MSI) funding for operating expenditures decreased in 2013 to $262,957 (2012 - $280,673). Decreases in MSI operating funding are expected to continue until the funding is removed entirely in 2017. 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, CA Manager of Finance - April 10, 2014 PAGE 24 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT �*rF"'y(•. -:Fl yrs � �.'�1 �� J+, -•.rat � ++rt.� '� +"rte: � +r ifX 5/ x .. I ':� rf =� •+� +, o -.-J��'F'-�.. v � .. a �f s 4 1� � Z• _ r- rJ F f •ter . Y d � "rry i s t r { K - # ' � 1• r �.+ �i�•f �i " - 1 �,'tr, �,P r' J'S.+ _ ji_ r l .�y�Wj' .. # F i :!!•6...A i s 'i' - 4 fit. w•J �r "E' �i4 .'ljj - ^+ r 1 '�'k" r4 13 ' P �' �' "� l F .6 •�� - P �r •� .F �. [ r' tr- j ..;.t- +lil�g ryi'� *'S+ �•,^ � / � ' a r •�. �P aff r'" N li!,,,.,y+� • _ 1 a' ,•3 /� ar k_a '` ,a� �" „� ` _ r ''•" _`fir-., � -' =" y� '-� � �,�� _ � �� .[� ��_'�. ` + r.+'a � ~# -f' l i� £� x � �, .� P � rr ,` � ; '^�.�,; I r#•� � i'��•'n ; r y f �r ar - r g t + ► ��, ir1 �.*,'G i P+a .,'.{ S Y3ti1 +y / ♦ Y• �C \ _ -�f _ *�: r s.t�J."1 `�rli irr7� A� Ok �f. rr T IL Pho bVssseV Ar qm "m rr T w1- "m SECTION 3 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 27 Photo by Newell Regional Tourism Associat ii ■ CONSOLIDATED FINANCIAL STATEMENTS MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS Management of the County of Newell is responsible for the preparation, accuracy, objectivity, and integrity of the accompanying financial statements and (lie nates thereto. Management believes that the financial statements present fairly the County's financial Position as at December 31, 2013 and the results of its operations for the year then ended. The financial statements have been prepared in accordance with Canadian public sector accounting standards. Financial statements are not precise, since they include certain amounts based on estimates and judgments. Such amounts have been determined on a reasonable basis in order to ensure that the financial statements are presented fairly in all material respects - in fulfilling its responsibilities and recognizing the lirnita inherent in all systems, management has designers and maintained a system of internal controls to produce reliable information to meet reporting requirements, The system is designed to provide managernent with reasonable assurance that transactions are properly authorized, reliable financial records are maintained, and assets are properly accounted For and safeguarded - The County Council is responsible for overseeing management in the performance of its financial repoMing responsibilities, and for approving the financial statements- Council fulfills these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and external auditors, Council is also responsible for recommending the appointment of the County's exterrial auditors. The financial statements have been audited by the independent firm of KPMG LLP, Chartered Accountants, Their report to the Members of Council of the County of Newell, stating the scalae of their examination and opinion on the financial statements follows. ief #fid nistrative Officer ril 1OA014 4-. Treasurer COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 29 CONSOLIDATED FINANCIAL STATEMENTS lKy 1(PAAo LLP SOO Leliihridge CPmreTm,%� ! 400 - 4th Avenue South LigthIbmd(K. AS 71J4EI Cm vidh Independent Audiinrs' Report To the Reeve and Members of Council of the County of Newell. Tawpwna ia03)3w:7w Fax 9rtt)3136(!65760 Internee %VWWkPrng.Ga We have audited the accompanying consolidated financial statements of Counly of Newell (the 'County") which corn prise the consolidated statement of financial position as at December 31. 2013. and the consolidated statements of financial activities, changes in net financial assets, and cash flaws for the year then ended, and notes, comprising a summary of significant eoc.ounting policies and other expNinatory information. Managrerr rtf's ResponsWity far the Con"kialed Financial ,Statements Management is responsible for the preparafion and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such intemal control as management determines is necessary to enable the preparation of consolidmed finan6al 5tatemeMs that are free from material misstatement, whether due to fraud or error. Audilors'Responsibf ly Our responsibility is to express an opinion on (hese consolidated financial statements based on our audit- We conducted our audit in accordance vrith Canadian generally aocepled auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidaled financial statements are free from material misstatement - An audit involves performing procedures toobtain audit evidence about the amounts and disclosures in the consolidated financial stslem+ents- The procedures selected depend on ourjudgment, including the assessment of the risks of material misstatement of the consolidated Financial statements, w; tether due to fraud or error. In making talose risk assessments, we consider iniernat control relB ant to the erviVs preparation and fair presentation of the conslolWated financial statements in order to design audit ;procedures that are appropriate in the circumstances, but not for the pufpose of expressing an opinion on the effectiveness of the entilWs Internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements, We helleue that the audit evidence w- have obtained is sufficient and appropriate to Provide a basis for our audit opinion. Opinion In our opilnlon. the consolidated financiad statements present fairly, in all materia respects, the consolidated financial position of County of Newell as at December 31, 2013, and its results of consolidated finanoiel activltles, Its changes in net financial assets and its cash Flaws for the year then ended in accordance vtrilh Canadian public sector accounting slandards. ,4yw,�r r4im*a. 01A&Wj "ft's len,4 041#im win KPFA3 vmvw"{Ok[+lyd; * A nil 7f],'2b1 +-K^iGl�x.+sror+ .�swsaxr:e� P Kru+aCxwn Womm wnrtes�airkUP Lethbridge, Canada PAGE 30 COUNTY OF NEWELL — 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Consolidated Statement of Financial Position December 31, 2013, with comparative information for 2012 Financial liabilities Accounts payable and accrued liabilities 2013 2012 Financial assets: 362,731 321,915 Cash and cash equivalents (note 2) $ 24,824,788 $ 24,544,459 Taxes and grants in place of taxes receivable (note 3) 1,116,368 890,911 Trade and other receivables 8,334,254 6,258,580 Land held for resale 35,139 35,139 Investments (note 4) 33,292,357 35,901,728 Notes receivable (note 5) 5,005,001 5,920,763 Other financial assets 24,921 - 72,632,828 73,551,580 Financial liabilities Accounts payable and accrued liabilities 5,222,960 7,253,208 Employee benefit obligations (note 7) 362,731 321,915 Unearned revenue (note 8) 1,468,140 1,055,761 Long-term debt - operating (note 9) 3,828,867 4,479,144 Long-term debt - capital (note 10) 20,449,278 17,115,017 Provision for landfill closure and post -closure costs (note 11) 337,897 292,215 Provision for gravel pit closure and post -closure costs (note 11) 315,376 315,376 Deposit liabilities (note 2) 235,084 158,270 Other financial liabilities - 7,371 32,220,333 30,998,277 Net financial assets 40,412,495 42,553,303 Non-financial assets Prepaid expenses 38,460 86,082 Tangible Capital Assets (note 6) 179,395,313 156,681,903 Inventory for consumption 1,608,875 1,122,799 181,042,648 157,890,784 Contingent liabilities (note 20) Accumulated surplus (note 12) $221,455,143 $200,444,087 The accompanying notes are an integral part of these consolidated financial statements. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 31 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Consolidated Statement of Financial Activities Year ended December 31, 2013, with comparative information for 2012 Revenues: Net municipal property taxes (note 13) Special levies User fees and sale of goods Government transfers (note 14) Penalties and cost of taxes Investment income Licenses and permits Other revenue Gain (loss) on disposal of tangible capital assets Expenses (note 15): Legislative Administration Corporate safety services Fire and by-law enforcement Disaster and emergency services Roads, streets, walks and lighting Airport Water and waste water Waste management Family and community support Municipal planning Community and agricultural services Subdivision land and development Recreation and parks Culture and library Other Annual surplus before the undernoted Other: Insurance proceeds Contributed assets Contributed from other local government (note 16) Government transfers (note 14) Annual surplus Accumulated surplus, beginning of year Accumulated surplus, end of year Budget 2013 2012 $ 27,565,327 $ 27,483,929 $ 26,174,091 2,516,778 2,045,909 711,465 783,430 1,154,883 988,258 1,393,729 886,142 1,294,814 125,550 153,848 164,918 1,212,471 1,541,343 1,736,993 146,600 178,424 166,302 100,710 1,565,714 1,393,890 334,200 365,342 (123,751) 34,178,795 35,375,534 32,506,980 489,492 456,097 433,035 4,142,362 3,592,537 3,220,198 287,100 260,472 251,127 1,467,578 1,283,897 1,060,690 187,540 165,893 145,619 13,539,527 11,790,873 9,722,194 122,973 92,484 92,701 1,804,877 1,376,277 1,195,158 353,000 261,986 259,826 61,812 60,829 60,812 488,559 443,448 380,354 1,539,396 1,439,801 1,300,551 438,750 347,863 265,710 859,724 826,418 767,826 142,599 138,917 140,682 1,175,656 2,600,016 805,240 27,100,945 25,137,808 20,101,723 7,077,850 10,237,726 12,405,257 1,450,000 - - 845,882 - 2,795,262 - 12,211,157 6,528,068 9,710,706 19,289,007 21,011,056 22,961,845 200,444,087 200,444,087 177,482,242 $219,733,094 $221,455,143 $ 200,444,087 The accompanying notes are an integral part of these consolidated financial statements 32 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Consolidated Statement of Change in Net Financial Assets December 31, 2013, with comparative information for 2012 The accompanying notes are an integral part of these consolidated financial statements. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 33 Budget 2013 2012 Annual surplus $19,289,007 $ 21,011,056 $ 22,961,845 Acquisition of tangible capital assets (38,534,971) (28,105,247) (37,391,671) Contributed tangible capital assets - - (845,882) Proceeds on disposal of tangible capital assets 440,000 1,334,764 348,379 Amortization of tangible capital assets 5,518,066 4,422,416 3,896,602 (Gain) loss on disposal of tangible capital assets (334,200) (365,342) 123,751 (13,622,098) (1,702,353) (10,906,976) Use (acquisition) of inventories for consumption - (486,076) (169,438) Use (acquisition) of prepaid expenses - 47,621 70,487 Change in net financial assets (13,622,098) (2,140,808) (11,005,927) Net financial assets, beginning of year 42,553,303 42,553,303 53,559,230 Net financial assets, end of year $28,931,205 $ 40,412,495 $ 42,553,303 The accompanying notes are an integral part of these consolidated financial statements. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 33 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Consolidated Statement of Cash Flows Year ended December 31, 2013, with comparative information for 2012 2013 2012 Cash provided by (used in): Operations Annual surplus $ 21,011,056 $ 22,961,845 Items not involving cash: 2,609,371 (8,241,296) Amortization 4,422,416 3,896,602 Contributed assets - (845,882) (Gain) loss on disposal of tangible capital assets (365,342) 123,751 Change in non-cash financial assets and liabilities: Taxes and grants in place of taxes receivable (225,457) (30,276) Trade and other receivables (2,075,674) 1,546,458 Other financial assets (24,921) - Prepaid expenses 47,621 70,487 Inventory for consumption (486,076) (169,438) Accounts payable and accrued liabilities (2,030,248) 334,492 Employee benefit obligations 40,816 88,710 Unearned revenue 412,379 (1,496,707) Landfill closure and post -closure costs 45,682 (47,292) Gravel pit closure and post -closure costs - 21,675 Other financial liabilities (7,371) (92,514) 20,764,881 26,361,911 Capital activities: Proceeds on disposal of tangible capital assets 1,334,764 348,379 Cash used to acquire tangible capital assets (28,105,247) (37,391,671) (26,770,483) (37,043,292) Investing activities Decrease (increase) in temporary investments 3,333,745 (11,279,976) Decrease (increase) in investments 2,609,371 (8,241,296) Payments received on notes receivable 915,762 870,463 6,858,878 (18,650,809) Financing activities: Repayment of long-term debt: - operating (650,277) (616,377) - capital (1,665,739) (634,674) Proceeds from debt issues 5,000,000 17,400,000 _Increase in deposit liabilities 76,814 9,203 2,760,798 16,158,152 Increase (decrease) in cash and cash equivalents 3,614,074 (13,174,038) Cash and cash equivalents, beginning of year 3,749,538 16,923,576 Cash and cash equivalents, end of year (note 2) $ 7,363,612 $ 3,749,538 The accompanying notes are an integral part of these consolidated financial statements. PAGE 34 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 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 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. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT AGutea" CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 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 gravel pits and provide for post -closure care. Closure and post -closure activities include the final clay cover, landscaping, as well as surface and ground water monitoring, leachate control and visual inspection. The requirement is being provided for over the estimated remaining life of the landfill site and gravel pit based on usage. (h) Government transfers: Government transfers are recognized in the financial statements as revenues in the period that the events giving rise to the transfer occurred, providing the transfers are authorized, all eligibility criteria have been met by the County, and reasonable estimates of the amounts can be made. (i) Non-financial assets: Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the normal course of operations. (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. a 0 PAGE 36 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 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. Q) 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. (k) Use of estimates: The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the 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 - 2013 ANNUAL FINANCIAL REPORT PAGE 37 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 2. Cash and temporary investments: 2013 2012 Cash $ 7,363,612 $ 3,749,538 Temporary investments 17,461,176 20,794,921 $ 24,824,788 $ 24,544,459 Included in cash are amounts aggregating $235,084 (2012 - $158,270) not available for current use. Also included in cash and temporary investments is $5,072,945 (2012 - $6,698,261) of unexpended debt proceeds. 2013 2012 Tax sale surplus $ 12,396 $ 12,254 Public reserve 222,688 146,016 $ 235,084 $ 158,270 Temporary investments consist of GIC's that have an average interest rate of 1.83% (2012 — 1.57%) and mature in periods ranging from January, 2014 to October, 2014, and term notes with an effective interest rate of 2.76% (2012 — nil%) and mature in October, 2014. Cash and cash equivalents are comprised of: Cash and temporary investments Less investments with original maturities greater than 90 days 3. Taxes and grants in place of taxes receivable: 2013 $ 24,824,788 (17,461,176) $ 7,363,612 2012 $ 24,544,459 (20,794,921) $ 3,749,538 2013 2012 Current year $ 588,708 $ 411,923 Arrears 627,660 498,988 1,216,368 910,911 Allowance for uncollectible taxes (100,000) (20,000) �$ 1,116,368 $ 890,911 I* PAGE 38 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 4. Investments: Fixed income securities Credit Union Common shares Newell Regional Services Corporation: Common shares Preferred shares 2013 2012 $ 33,208,154 $ 35,828,243 5 5 20 20 84,178 73,460 84,198 73,480 $ 33,292,357 $ 35,901,728 Long-term investments consist of fixed income securities that yield interest from 0.22% to 6.54% and mature in periods 2014 through 2026. The investments have an average expected yield of 2.64% and an aggregate market value of $32,722,792 (2012 - $36,225,703). 5. Notes receivable: Newell Foundation, repayable in annual installments of $896,630 including interest at 5.5%, maturing in 2018. Tilley and District Fire Association, repayable in annual installments of $96,327 including interest at 3.497%, maturing in 2020. Newell Regional Services Corporation, non-interest bearing, maturing in 2017. Division 5 & 10, matured in 2013. Bow Slope Fire Division, matured in 2013. Rolling Hills Fire Division, repayable in annual installments of $39,585 including interest at 3.954%, maturing in 2014. 2013 2012 $ 3,828,867 $ 4,479,144 587,693 660,908 550,000 550,000 - 124,542 - 30,763 38,441 75,406 $ 5,005,001 $ 5,920,763 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 39 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 6. Tangible capital assets: Cost 2012 Additions Disposals 2013 Land $ 5,337,570 $ 94,030 $ (11,250) $ 5,420,350 Land improvements 1,113,476 711,657 (7,554) 1,817,579 Buildings 1,213,478 17,733,596 (156,294) 18,790,780 Engineered structures 115,589,689 8,472,378 (225,518) 123,836,549 Machinery and equipment 9,530,567 2,153,109 (1,417,012) 10,266,664 Vehicles 3,703,789 3,779 (115,765) 3,591,803 Work in progress, net of transfers 66,226,334 (1,063,302) -- 65,163,032 Total $202,714,903 $ 28,105,247 $ (1,933,393) $228,886,757 Accumulated Amortization amortization 2012 Disposals expense 2013 Land improvements $ 358,643 $ (7,554) $ 110,156 $ 461,245 Buildings 445,784 (52,206) 240,571 634,149 Engineered structures 39,978,382 (100,447) 3,121,525 42,999,460 Machinery and equipment 3,371,053 (728,587) 668,635 3,311,101 Vehicles 1,879,138 (75,178) 281,529 2,085,489 Total $ 46,033,000 $ (963,972) $ 4,422,416 $ 49,491,444 Net book value 2013 2012 Land $ 5,420,350 $ 5,337,570 Land improvements 1,356,334 754,833 Buildings 18,156,631 767,694 Engineered structures 80,837,089 75,611,307 Machinery and equipment 6,955,563 6,159,514 Vehicles 1,506,314 1,824,651 Work in progress 65,163,032 66,226,334 Total $179,395,313 $156,681,903 PAGE 40 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 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) and are entitled to these benefits within the next budgetary year. 8. Unearned Revenue: Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at 5.5% per annum, before Provincial subsidy, and matures in 2018. Debenture debt is issued on the credit and security of the County of Newell at large. Interest on long-term debt amounted to $255,294 (2012 — $341,841). The County's total cash payments for interest in 2013 were $246,353 (2012 - $280,253). COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 41 Recognized as Description 2012 Additions revenue 2013 Rural Water Deposits $ 662,310 $ 246,885 $ (430,027) $ 479,168 Street Improvement Grant 173,520 -- -- 173,520 MSI Capital (Tilley) -- 639,668 -- 639,668 Other 219,931 149,023 (193,170) 175,784 Total $ 1,055,761 $ 1,035,576 $ (623,197) 1,468,140 9. Long-term debt — operating: 2013 2012 Debenture supported with notes receivable $ 3,828,867 $ 4,479,144 Principal and interest repayments are due as follows: Principal Interest Total 2014 $ 686,043 $ 210,587 $ 896,630 2015 723,775 172,855 896,630 2016 763,583 133,047 896,630 2017 805,580 91,050 896,630 2018 849,886 46,744 896,630 Thereafter -- -- -- $ 3,828,867 $ 654,283 $ 4,483,150 Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at 5.5% per annum, before Provincial subsidy, and matures in 2018. Debenture debt is issued on the credit and security of the County of Newell at large. Interest on long-term debt amounted to $255,294 (2012 — $341,841). The County's total cash payments for interest in 2013 were $246,353 (2012 - $280,253). COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 41 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 10. Long-term debt —capital: 2013 2012 Tax supported debentures $ 20,449,278 $ 17,115,017 Principal and interest repayments are due as follows: $ 20,449,278 $ 2,379,427 $ 22,828,705 Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates ranging from 2.177% to 7.125% per annum, before Provincial subsidy, and matures in periods 2015 through 2023. The average annual interest rate is 2.39% for 2013 (2012 — 2.28%). For qualifying debentures, the Province of Alberta rebates 60% of interest in excess of 8%, 9% and 11% to a maximum annual rate of 12.5%, depending on the date borrowed. Debenture debt is issued on the credit and security of the County of Newell at large. Interest on long-term debt amounted to $384,355 (2012 - $173,917). The County's total cash payments for interest in 2013 were $380,386 (2012 - $155,855). 11. Provision for landfill and gravel pit closure and post -closure costs: Alberta environmental law requires closure and post -closure care of landfill sites, which includes final covering and landscaping, pumping of ground water and leachates from the site, and on-going environmental monitoring, site inspections and maintenance. The accrued liability for the remaining post -closure costs of the County's landfill and closure and post - closure costs for the County's gravel pit is based on an estimate of future discounted costs. The estimated closure and post -closure costs for the landfill are $337,897 and $315,376 for the gravel pits, all of which have been accrued in the financial statements. The County has not designated assets for settling closure and post -closure liabilities. a 0 PAGE 42 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT Principal Interest Total 2014 $ 2,145,860 $ 475,741 $ 2,621,601 2015 2,198,496 423,105 2,621,601 2016 2,164,280 370,068 2,534,348 2017 2,215,800 318,548 2,534,348 2018 2,261,785 265,780 2,527,565 Thereafter 9,463,057 526,185 9,989,242 $ 20,449,278 $ 2,379,427 $ 22,828,705 Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates ranging from 2.177% to 7.125% per annum, before Provincial subsidy, and matures in periods 2015 through 2023. The average annual interest rate is 2.39% for 2013 (2012 — 2.28%). For qualifying debentures, the Province of Alberta rebates 60% of interest in excess of 8%, 9% and 11% to a maximum annual rate of 12.5%, depending on the date borrowed. Debenture debt is issued on the credit and security of the County of Newell at large. Interest on long-term debt amounted to $384,355 (2012 - $173,917). The County's total cash payments for interest in 2013 were $380,386 (2012 - $155,855). 11. Provision for landfill and gravel pit closure and post -closure costs: Alberta environmental law requires closure and post -closure care of landfill sites, which includes final covering and landscaping, pumping of ground water and leachates from the site, and on-going environmental monitoring, site inspections and maintenance. The accrued liability for the remaining post -closure costs of the County's landfill and closure and post - closure costs for the County's gravel pit is based on an estimate of future discounted costs. The estimated closure and post -closure costs for the landfill are $337,897 and $315,376 for the gravel pits, all of which have been accrued in the financial statements. The County has not designated assets for settling closure and post -closure liabilities. a 0 PAGE 42 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 12. Accumulated surplus: Unrestricted net assets Equity in tangible capital Restricted Total Total assets (1) Surplus (2) 2013 2012 Beginning balance $ 4,177,590 $146,265,146 $50,001,351 $200,444,087 $177,482,242 Annual surplus 21,011,056 -- -- 21,011,056 22,961,845 Transfers to restricted surplus (24,453,576) -- 24,453,576 -- -- Transfers from restricted surplus 17,018,764 -- (17,018,764) -- -- Amortization of tangible capital assets 4,422,416 (4,422,416) -- -- Net book value of assets disposed 969,421 (969,421) -- -- -- Capital assets internally funded (21,479,932) 21,479,932 -- -- -- Capital assets debt funded (6,625,315) 6,625,315 -- -- -- Debt issued 5,000,000 (5,000,000) -- -- Use of unexpended debt 1,625,315 (1,625,315) -- -- -- Debt paid (1,665,739) 1,665,739 -- -- -- Total $ -- $164,018,980 $57,436,163 $221,455,143 $200,444,087 (1) Equity in tangible capital assets: Tangible capital assets Accumulated amortization Long-term debt (note 10) Unexpended debt 2013 2012 $ 228,886,757 $ 202,714,903 (49,491,444) (46,033,000) (20,449,278) (17,115,017) 5,072,945 6,698,260 $ 164,018,980 $146,265,146 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 43 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 12. Accumulated surplus (continued): (2) Restricted surplus is comprised of funds internally restricted as follows: Paving Infrastructure Future Projects Vehicles, Machinery & Equipment Regional Enhancement Stabilization Facilities Fire Apparatus Tilley Unexpended Budget Appropriation 13. Net municipal property taxes: Taxation: Real property taxes Linear property taxes Government grants in place of property taxes Requisitions: Alberta School Foundation Fund Newell Foundation Net municipal property taxes 2013 2012 $ 7,427,991 $ 10,730,423 11,917,807 10,357,044 21,286,610 13,041,337 5,764,056 6,004,010 3,457,464 3,684,072 2,847,112 2,847,112 913,490 402,215 598,150 250,000 850,725 -- 2,372,758 2,685,138 $57,436,163 $50,001,351 Budget 2013 2012 $ 13,705,039 $ 13,651,062 $ 12,942,564 26,540,054 26,508,789 25,407,884 293,178 304,537 221,111 40,538,271 40,464,388 38,571,559 12,196,492 12,204,007 11,733,419 776,452 776,452 664,049 12,972,944 12,980,459 12,397,468 $ 27,565,327 $ 27,483,929 $ 26,174,091 PAGE 44 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 14. Government transfers: COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 45 Budget 2013 2012 Transfers for operating: Provincial government $ 1,021,225 $ 532,942 $ 938,457 Local government 372,504 353,200 356,357 1,393,729 886,142 1,294,814 Transfers for capital: Provincial government 12,211,157 6,521,623 9,640,616 Local government - 6,445 70,090 12,211,157 6,528,068 9,710,706 $ 13,604,886 $ 7,414,210 $ 11,005,520 15. Expenses by object: Budget 2013 2012 Salaries, wages and benefits $ 7,622,505 $ 6,814,669 $ 6,626,248 Contracted and general services 5,451,789 4,949,447 3,829,256 Materials, goods, supplies and utilities 4,896,079 4,007,534 2,495,296 Transfers to organizations 2,907,566 4,186,278 2,530,290 Bank charges and short-term interest 600 830 596 Interest on long-term debt 681,840 630,708 442,926 Other expenditures 22,500 125,926 280,509 Amortization 5,518,066 4,422,416 3,896,602 $ 27,100,945 $ 25,137,808 $ 20,101,723 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 45 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 16. Contributed from other local government Effective August 31, 2013, the Lieutenant Governor in Council issued an order: (i) Dissolving the Village of Tilley on August 31, 2013; (ii) Directing land allocated as part of the Village of Tilley to become part of the County of Newell; and; (iii) Directing that the assessor for the County of Newell keep the assessment and tax rolls for the land separate from the assessment and tax rolls for other land in the County of Newell for the period from August 31, 2013 to December 31, 2013, inclusive. The County of Newell received all assets and assumed all liabilities of the Village as at August 31, 2013. The dissolution is shown as a contribution from other local government in the December 31, 2013 Statement of Financial Activities. Financial assets: Cash and cash equivalents Taxes and grants in place of taxes receivable Trade and other receivables Inventory for resale Investments Financial liabilities: Accounts payable and accrued liabilities Post closure liability Unearned revenue Net financial assets Non-financial assets: Tangible Capital Assets Contributed from other local government lq% PAGE 46 COUNTY OF NEWELL 2013 0 ANNUAL August 30, 2013 $ 1,333,407 139,206 5,853 2,772 10,728 1,491,966 60,587 50,662 415,370 526,619 965,347 1,829,915 $ 2,795,262 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 17. Salary and benefits disclosure: Disclosure of salaries and benefits for elected municipal officials and the chief administrative officer as required by provincial regulation is as follows: 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 - 2013 ANNUAL FINANCIAL REPORT PAGE 47 2013 2012 Benefits & Salary (1) Allowances (2) Total Total Council: Division 1 $ 27,630 $ 4,722 $ 32,352 $ 37,470 Division 2 28,720 1,311 30,031 28,105 Division 3 30,293 4,826 35,119 39,392 Division 4 20,391 1,197 21,588 23,395 Division 5 23,646 1,695 25,341 24,059 Division 6 26,455 3,937 30,392 28,976 Division 7 28,065 4,725 32,790 34,238 Division 8 30,323 1,400 31,723 31,879 Division 9 44,215 1,988 46,203 49,935 Division 10 26,805 4,690 31,495 33,111 $ 286,543 $ 30,491 $ 317,034 $ 330,560 Chief Administrative Officer $ 197,931 $ 42,205 $ 240,136 $ 229,602 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 - 2013 ANNUAL FINANCIAL REPORT PAGE 47 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 18. Debt limits: Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by Alberta Regulation 255/00 for the County be disclosed as follows: 2013 2012 Total debt limit $ 55,238,301 $ 48,760,469 Total debt (24,278,145) (21,594,161) $ 30,960,156 $ 27,166,308 2013 2012 Debt servicing limit $ 9,206,384 $ 8,126,745 Debt servicing (3,518,232) (2,942,755) $ 5,688,152 $ 5,183,990 The debt limit is calculated at 1.5 times revenue of the County (as defined in Alberta Regulation 255/00) and the debt service limit is calculated at 0.25 times such revenue. Incurring debt beyond these limitations requires approval by the Minister of Municipal Affairs. These thresholds are guidelines used by Alberta Municipal Affairs to identify municipalities which could be at financial risk if further debt is acquired. The calculation taken alone does not represent the financial stability of the County. Rather, the financial statements must be interpreted as a whole. 19. Local authorities pension plan: The County participates in a multi-employer defined benefit pension plan. This plan is accounted for as a defined contribution plan. Employees of the County participate in the Local Authorities Pension Plan (LAPP), which is one of the plans covered by the Public Sector Pension Plans Act. The LAPP serves about 223,643 people and about 428 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 10.43% of pensionable earnings up to the year's maximum pensionable earnings under the Canada Pension Plan and 14.47% on pensionable earnings above this amount. Employees of the County are required to make current service contributions of 9.43% of pensionable salary up to the year's maximum pensionable salary and 13.47% on pensionable salary above this amount. Total current service contributions by the County to the LAPP in 2013 were $455,921 (2012 - $410,759). Total current service contributions by the employees of the County to the LAPP in 2013 were $417,856 (2012 - $373,677). At December 31, 2012, the LAPP disclosed an actuarial deficiency of $4.9 billion. PAGE 48 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 20. 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. The County has been named defendant in legal actions. In the opinion of management these matters are without substantial merit and no provision has been made in the accounts. 21. Recent accounting pronouncements: The Public Sector Accounting Board recently announced the following accounting pronouncements: (a) Liability for contaminated sites: This accounting pronouncement establishes standards on how to account for and report a liability associated with the remediation of contaminated sites. It is effective for fiscal years beginning on or after April 1, 2014, with early adoption encouraged. (b) Financial instruments: This accounting pronouncement establishes standards on how to account for and report all types of financial instruments including derivatives. Financial instruments include primary instruments and derivative instruments. It is effective for fiscal years beginning on or after April 1, 2015 for governments and for fiscal years beginning on or after April 1, 2012 for government organizations, with early adoption encouraged. (c) Foreign currency translation: This accounting pronouncement establishes standards on how to account for and report transactions that are denominated in a foreign currency in government financial statements. It is effective for fiscal years beginning on or after April 1, 2015 for governments and for fiscal years beginning on or after April 1, 2012 for government organizations, with early adoption encouraged. Management is assessing the impact of the adoption of these standards which is not known or reasonably estimable at this time. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 49 CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 22. 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. 23. Comparative information: Certain comparative information has been reclassified from those previously presented to conform to the presentation of the 2013 financial statements. lq% PAGE 50 COUNTY OF NEWELL 2013 0 ANNUAL FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS COUNTY OF NEWELL Notes to Consolidated Financial Statements Year ended December 31, 2013 24. Budget information: The budget information presented in these consolidated financial statements is based upon the 2013 budget approved by Council on December 20, 2012 and any subsequent budget amendments. 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 $ 80,197,170 Budget amendments 2,582,798 82,779,968 Adjustments: Proceeds on debt issue (7,939,000) Transfers from restricted surplus (15,478,072) Transfers to organizations (12,972,944) Total budgeted revenue 46,389,952 Expenses Approved budget: $ 80,197,170 Budget amendments 2,582,798 82,779,968 Adjustments: Tangible capital assets (38,534,971) Debt principal repayments (1,840,466) Unfunded amortization 2,071,947 Transfers to restricted surplus (4,402,589) Transfers to organizations (12,972,944) Total budgeted expenses 27,100,945 Budgeted annual surplus $ 19,289,007 25. Approval of financial statements: These financial statements were approved by Council and Management. COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 51 SCHEDULE OF SEGMENTED DISCLOSURES COUNTY OF NEWELL Schedule of Segmented Disclosures Year ended December 31, 2013, with comparative information for 2012 Public Works General and Government Transportation Public Utilities Revenue Net taxes for municipal purposes Special levies User Fees and sale of goods Government transfers - operating Penalties and costs of taxes Investment income License and permits Other Gain (loss) on disposal of capital assets Salaries, wages and benefits Contracted and general services Materials, goods, supplies and utilities Transfers to Organizations Bank charges and short term interest Interest on long-term debt Other expenditures Amortization Annual surplus (deficit) before the undernoted Insurance proceeds Contributed assets Contributed from other local government Government transfers - capital Annual surplus (deficit) Schedule 1 Public Works Total General and Total 2013 Government Transportation Public Utilities 2012 $ 27,483,929 $ $ - $ 27,483,929 $ 26,174,091 $ $ - $ 26,174,091 699,378 1,346,531 2,045,909 658,598 52,867 711,465 470,415 253,031 431,437 1,154,883 532,828 221,442 233,988 988,258 784,680 - 101,462 886,142 797,613 395,739 101,462 1,294,814 153,848 - 153,848 164,918 - - 164,918 1,541,343 1,541,343 1,736,993 1,736,993 178,424 - - 178,424 166,302 - - 166,302 232,666 55,570 1,277,478 1,565,714 300,242 73,287 1,020,361 1,393,890 283,378 81,964 - 365,342 9,364 (133,115) - (123,751) 31,828,061 390,565 3,156,908 35,375,534 30,540,949 557,353 1,408,678 32,506,980 3,842,272 2,972,397 - 6,814,669 3,700,379 2,925,869 - 6,626,248 1,545,403 2,433,648 970,396 4,949,447 1,222,880 2,179,404 426,972 3,829,256 1,154,920 2,244,547 608,067 4,007,534 931,130 1,105,422 458,744 2,495,296 4,177,337 - - 4,177,337 2,255,975 - 274,315 2,530,290 830 - 830 596 - 596 255,294 - 384,355 639,649 280,254 - 162,672 442,926 84,064 41,862 - 125,926 165,650 114,859 - 280,509 644,998 3,594,847 182,571 4,422,416 367,680 3,396,641 132,281 3,896,602 11,705,118 11,287,301 2,145,389 25,137,808 8,924,544 9,722,195 1,454,984 20,101,723 20,122,943 (10,896,736) 1,011,519 10,237,726 21,616,405 (9,164,842) (46,306) 12,405,257 1,450,000 - 1,450,000 - - - - - - 162,000 246,494 437,388 845,882 2,795,262 - - 2,795,262 - - - - - 707,227 5,820,841 6,528,068 1,929,223 1,649,507 6,131,976 9,710,706 $ 24,368,205 $ (10,189,509) $ 6,832,360 $ 21,011,056 $ 23,707,628 $ (7,268,841) $ 6,523,058 $ 22,961,845 PAGE 52 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT O T 171 ITI 1-1-1 ami 4. ZZZ ar. 1 r SECTION 4 STATISTICAL SECTION COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 55 STATISTICAL SECTION Demographics & Other Statistics Demographics & Other Statistics PAGE 56 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT 2008 2009 2010 2011 2012 2013 Population* 6,862 6,862 7,101 7,101 6,786 7,138 Households 2,781 2,815 2,842 2,857 2,957 3,145 Area in hectares 623,537 623,537 623,537 623,537 623,537 623,605 Continuous full-time employees 57 55 54 55 55 60 Debt supported by property taxes 579,840 504,421 425,150 349,691 17,115,017 20,449,278 Debt supported by notes receivable 6,758,464 6,233,550 5,679,764 5,095,521 4,479,144 3,828,867 Debt per capita 1,069 949 860 767 3,182 3,401 Annual surplus 20,658,875 27,859,930 22,190,324 24,689,653 22,961,845 21,011,056 Accumulated surplus 101,827,656 129,687,586 152,792,589 177,482,242 200,444,087 221,455,143 Net financial assets 51,696,054 55,022,926 53,214,934 53,559,230 42,553,303 40,412,495 Permits Issued: Building Permit 101 76 69 58 90 76 Electrical Permit 223 360 201 166 202 169 Gas Permit 112 57 61 67 81 78 Plumbing Permit 54 39 30 32 51 48 Private Sewage Permit 18 25 17 17 21 22 508 557 378 340 445 393 *Source Alberta Municipal Affairs Statistics Profile PAGE 56 COUNTY OF NEWELL 2013 ANNUAL FINANCIAL REPORT STATISTICAL SECTION Expenses by Function & Expenses by Object Expenses by Function EXPENSES Legislative Administration Corporate safety services Fire and bylaw enforcement Disaster and emergency services Roads, streets, walks and lighting Airport Water and waste water Waste management Family and community support Municipal planning Community and agricultural services Subdivision land and development Recreation and parks Culture and library Other TOTAL EXPENSES BY FUNCTION 2008 2009 2010 2011 2012 2013 $ 411,868 $ 419,156 $ 438,302 $ 456,142 $ 433,035 $ 456,097 5,020,940 4,197,280 2,900,474 3,130,338 3,220,198 3,592,537 197,892 216,334 238,257 236,523 251,127 260,472 926,748 953,991 1,032,879 881,245 1,060,690 1,283,897 91,733 12,314 180,571 133,965 145,619 165,893 8,503,831 10,142,187 8,628,420 12,581,127 9,722,194 11,790,873 - - 90,641 112,297 92,701 92,484 2,304,183 13,464,843 6,612,354 2,906,261 1,195,158 1,376,277 233,743 234,308 249,413 255,619 259,826 261,986 40,880 41,217 43,949 41,668 60,812 60,829 168,179 216,496 224,308 260,789 380,354 443,448 1,308,869 1,141,585 1,140,078 1,048,306 1,300,551 1,439,801 15,700 166,050 171,491 174,056 265,710 347,863 674,439 701,270 733,752 731,661 767,826 826,418 123,720 137,222 138,125 139,473 140,682 138,917 51,649 (9,634) 76,245 37,454 805,240 2,600,016 $ 20,074,374 $ 32,034,619 $ 22,899,259 $ 23,126,924 $ 20,101,723 $ 25,137,808 Expenses by Object EXPENSES Salaries, wages and benefits Contracted and general services Materials, goods, supplies and utilities Transfers to organizations Bank charges and short-term interest Interest on long-term debt Other expenditures Amortization TOTAL EXPENSES BY OBJECT 2008 2009 2010 2011 2012 2013 $ 5,395,633 $ 5,499,995 $ 5,731,502 $ 6,063,168 $ 6,626,248 $ 6,814,669 4,314,291 4,850,898 3,354,805 6,532,596 3,829,256 4,949,447 2,217,314 2,009,729 1,935,961 2,401,879 2,495,296 4,007,534 5,932,034 16,327,408 8,150,298 4,039,138 2,530,290 4,186,278 563 528 497 508 596 830 428,683 391,030 357,911 325,913 442,926 630,708 104,892 70,262 38,960 225,294 280,509 125,926 1,680,964 2,884,769 3,329,325 3,538,428 3,896,602 4,422,416 $ 20,074,374 $ 32,034,619 $ 22,899,259 $ 23,126,924 $ 20,101,723 $ 25,137,808 COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT PAGE 57 STATISTICAL SECTION Revenues by Source Revenues by Source REVENUES Net municipal property taxes Special levies User fees and sale of goods Government transfers Penalties and cost of taxes Investment income Licenses and permits Other revenue Gain (loss) on disposal of tangible capital assets Operating revenues Other: Insurance proceeds Contributed from other local government Contributed assets Government transfers TOTAL REVENUE 2008 2009 2010 2011 2012 2013 $ 25,368,889 $ 27,529,024 $ 25,357,073 $ 25,337,414 $ 26,174,091 $27,483,929 811,565 725,363 784,728 685,797 711,465 2,045,909 685,892 800,859 798,453 828,787 988,258 1,154,883 2,141,579 1,733,210 1,601,670 1,198,557 1,294,814 886,142 76,391 112,218 138,669 167,589 164,918 153,848 2,388,286 1,448,226 1,180,134 1,371,013 1,736,993 1,541,343 31,495 27,125 30,700 70,292 166,302 178,424 122,375 161,852 114,928 271,655 1,393,890 1,565,715 (30,830) (39,478) 91,464 130,537 (123,751) 365,342 31,595,642 32,498,399 30,097,819 30,061,641 32,506,980 35,375,534 - - - - - 1,450,000 - - - - - 2,795,262 710,670 624,420 1,667,917 106,193 845,882 - 8,426,937 26,771,730 13,323,847 17,648,743 9,710,706 6,528,068 9,137,607 27,396,150 14,991,764 17,754,936 10,556,588 10,773,330 $ 40,733,249 $ 59,894,549 $ 45,089,583 $ 47,816,577 $ 43,063,568 $ 46,148,864 PAGE 58 -T COUNTY OF NEWELL - 2013 ANNUAL FINANCIAL REPORT