2015 statement of financial information - civicweb sofi.pdf · section 4 employee department...

STATEMENT OF FINANCIAL INFORMATION

FOR THE YEAR ENDED DECEMBER 31, 2015

(FINANCIAL INFORMATION ACT)

NORTHERN ROCKIES REGIONAL MUNICIPALITY TABLE OF CONTENTS SECTION SECTION NUMBER

Schedule of Guarantees and Indemnity Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Schedule of Severance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Statement of Council Remuneration and Expenses Paid ‐ 2015 . . . . . . . . . . . . . . . . . . . . 3

Statement of Employee Remuneration and Expenses Paid ‐ 2015 . . . . . . . . . . . . . . . . . 4

Statement of Accounts Paid ‐ 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Schedule of Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Statement of Financial Information Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

NORTHERN ROCKIES REGIONAL MUNICIPALITY SCHEDULE OF GUARANTEE AND INDEMNITY AGREEMENTS Section 1 The Northern Rockies Regional Municipality has not given any guarantees or indemnities under the Guarantees & Indemnities Regulation. NORTHERN ROCKIES REGIONAL MUNICIPALITY SCHEDULE OF SEVERANCE Section 2 There were no severance agreements under which payment commenced between the Northern Rockies Regional Municipality and its non‐unionized employees during the 2015 fiscal year.

Section 3

NAME POSITION REMUNERATION EXPENSESANDREWS, KYLE Councillor $22,500 $2,547DOLAN, LAURIE Councillor $22,500 $4,159GERWING, LORRAINE Councillor $22,500 $5,592MCKEE, DOUGLAS Councillor $22,500 $0OSBOURNE, TODD Councillor $22,500 $1,838SOLES, DANIEL Councillor $22,500 $4,202STREEPER, BILL Mayor $44,000 $58,152TOTAL $179,000 $76,490

Section 4

EMPLOYEE DEPARTMENT

REMUNERATION GREATER THAN

$75,000 EXPENSESASPDEN, ANASTACIA Recreation $99,972 $4,546BARRY, SCOTT Public Works $172,695 $19,380BLAIN, ROBERT Technical Services $106,363 $5,451BONE, SHANE Public Works $81,968 $200BOOMER, JIM Public Works $95,941 $0CAVALIERE, TRIESTE Airport $120,990 $2,345CHAPMAN, JOSHUA Fire $128,831 $2,695CHILDS, JAMES Fire $144,600 $1,820COBBETT, HEATHER Corporate Services $168,583 $6,071COUPE, ROSS Corporate Services $117,481 $2,720DEJONG, HAROLD Public Works $121,694 $8,750DOMINIC, DAVID Public Works $76,582 $0DUCHARME, GLEN Public Works $84,772 $0FERGUSON, MICHAEL Technical Services $100,282 $7,387FLETCHER, RODNEY Technical Services $103,907 $2,673FISH, TOM Recreation $89,065 $0GARRIOTT, ROGER Public Works $90,253 $0GILBERT, MICHAEL Community Development $113,938 $2,410GORSALITZ, GERALD Public Works $82,212 $447GUSTAFSON, DARRELL Public Works $115,206 $9,785GWARTNEY, JOSHUA Airport $79,407 $0IRWIN, MIKE Recreation $79,008 $0

NORTHERN ROCKIES REGIONAL MUNICIPALITY


STATEMENT OF COUNCIL REMUNERATION AND EXPENSES PAID ‐ 2015

STATEMENT OF EMPLOYEE REMUNERATION AND EXPENSES PAID ‐ 2015

Section 4

EMPLOYEE DEPARTMENT

REMUNERATION GREATER THAN

$75,000 EXPENSES

NORTHERN ROCKIES REGIONAL MUNICIPALITYSTATEMENT OF EMPLOYEE REMUNERATION AND EXPENSES PAID ‐ 2015

KNELLER, LEONORA Corporate Services $103,391 $0LA VALE, ERIN Corporate Services $138,825 $6,569LEGUERRIER, GEORGE Fire $127,056 $1,904MACIVER, JAYLENE Community Development $112,028 $6,897MCCLEARY, GORDON Fire $143,618 $2,962MCLEAN, RANDY CAO $206,464 $6,527MORINE, DANIELLE Recreation $110,043 $2,869NELSON, JAMES Public Works $83,091 $0OGILVIE, JAMES Airport $116,376 $0O'SHAUGHNESSY, SEAN Recreation $80,694 $1,438PARK, RAYMOND Fire $116,446 $0PEACH, FRANK Fire $133,845 $0ROBERTS, JONATHAN Recreation $114,603 $0ROY, RICHARD Community Development $99,830 $6,852SHEPPARD, HAYWARD Fire $102,818 $3,074SHEPPARD, KELLY Finance $117,791 $3,283SMITH, CODY Fire $101,916 $0STEVENSON, JACK Community Development $117,876 $990TASA, DARRYL Airport $76,219 $2,125THOMSON, DENNIS Public Works $104,965 $240THURBIDE, TONI Finance $147,876 $8,691TOFTE, DOUGLAS Community Development $112,392 $0TOFTE, SARAH Recreation $96,694 $2,855WATSON, LOU‐ANN Public Works $107,918 $6,591WOODLAND, HARVEY Recreation $149,038 $0SUB TOTAL $5,295,563 $140,547

REMUNERATION AND EXPENSES UNDER $75,000 $3,643,329 $23,344TOTAL $8,938,892 $163,891

RECONCILIATION:Total remuneration ‐ Council $179,000Total remuneration ‐ Employees $8,938,892Employer portion of EI & CPP $395,838Fire fighter exemption $17,114Non‐taxable employee benefits, pension, worksafe $339,823Total per Note 14 ‐ Segmented Informationin Consolidated Financial Statements $9,870,667

NORTHERN ROCKIES REGIONAL MUNICIPALITYSTATEMENT OF ACCOUNTS PAID ‐ 2015 Section 5

AAMDC 135,682.51 Acklands‐Grainger Inc. 173,889.86 Airport Technologies Inc 464,037.67 Allnorth Consultants Ltd. 250,617.78 Anderson Bros Concrete Ltd. 89,040.00 Associated Fire Safety Equipment 27,790.11 BC Assessment Authority 570,325.10 BC Hydro ‐ Prince George 26,629.05 BC Hydro & Power Authority ‐ Terminal 871,111.69 Bell Mobility Inc 31,124.26 Bird Construction Company 10,733,765.01 Blue Canyon Concrete Ltd 58,732.48 Brownlee LLP 253,398.84 C U P E 59,922.49 Cannepp Sales & Service 121,620.80 Charlie's Truck Repair 32,365.91 Chemical Industries Alberta Inc 86,247.00 Cimco Refrigeration 318,395.95 City of Fort St. John 53,317.55 CL Video Inspection Services Ltd 42,000.00 Clariant (Canada) Inc 108,662.40 Colin J Griffith 136,500.00 Corix Water Products LP 42,840.00 CSCW Systems Corporation 59,413.65 D G Regan & Associates Ltd. 45,524.46 D.G.S. Astro Paving 1,246,612.13 Diamond Municipal Solutions 67,961.35 Diemert Home Hardware 30,609.52 District of Taylor 60,410.93 Dushay Welding Ltd 31,741.22 E.B. Horsman & Son 70,580.21 Ed's Building Supplies Ltd. 47,069.36 ESRI Canada 44,324.44 Filterco Water Treatment 69,700.37 Finning Canada Ltd. 78,134.54 FN Bulk Sales Ltd. 64,710.57 FN Historical Society 131,850.00 Fort Nelson Chamber of Commerc 73,506.07 Fort Nelson Janitorial 36,174.60 Fort Nelson Library Board 69,026.20 Fort Nelson News 43,541.51 Fort Nelson Redimix 109,360.76 FortisBC ‐ Vancouver 310,223.54 Garcia & Sons Transfer Ltd 82,847.47


Gasfield Plumbing & Heating 59,143.31 GHD Limited 69,771.05 GPR Industries (1994) Ltd. 41,659.52 Graystone Concrete & Masonry 103,366.07 Great West Equipment 354,416.77 Guillevin International Inc. 40,590.43 Hoban Equipment Ltd. 61,687.50 I.C.B.C. 96,029.68 IDL Projects Inc. 629,046.86 J & L Greenhouses 41,489.10 Jmayoff, Ashlie 63,410.94 Kasian Architecture Interior Design and Planning Ltd. 141,740.47 Kerr Wood Leidal 1,897,163.20 Kledo Construction Ltd 3,746,494.18 Mattson Dozing 33,972.75 McLean, Cheryl 49,938.50 Medical Ser. Plan of BC 107,486.75 Minister of Finance 13,916,285.70 Municipal Insurance Ass. of BC 30,846.20 Murray GM 79,886.24 Muskwa Valley Ventures Ltd. 42,727.11 N.S. Pawliuk & Son Contracting Ltd. 33,180.00 NAPA Auto Parts 32,905.83 New Direction Resource Management Ltd. 97,340.38 Nortech Efficient Business Solutions 163,176.31 North Country Maintenance Inc. 1,963,948.23 Northern Environmental Action Team 28,005.27 Northern Health Authority(Finance Dept) 307,536.47 Northern Rockies Engineering Inc 418,275.78 Northern Rockies Seniors Society 57,574.64 Northwestel 111,772.24 Pacific Blue Cross 328,850.23 Pinna Sustainability Inc. 31,432.35 Poplar Hills Golf & Country 357,011.20 Prism Engineering 47,968.21 Profire Emergency Equipment 27,809.86 Radar Road Transport Ltd. 29,951.25 Receiver General 4,223,227.43 Ricoh Canada Inc. 47,612.22 RNN Services Ltd. 283,423.53 Rosenau Transport Ltd. 29,295.32 Saddle Mountain Adventures 31,367.70 Sander Rose Bone Grindle 40,407.08 Sarah and Marc's Holdings Inc. 46,464.76


Seal Tec Industries Ltd 52,046.82 Shifting Mosaics Consulting 40,114.51 SNC‐Lavalin Inc. 146,530.09 Spectrum Resource Group Inc 58,544.66 Suez Treatment Solutions 121,285.32 T&M Plumbing & Heating 27,861.42 Terry Streeper Expediting Ltd. 36,930.00 Tetra Tech EBA Inc. 53,311.86 Tirecraft ‐ Ft. Nelson 27,888.97 Toad River Lodge‐Ltd. 109,670.40 Tru‐Source Electric 83,166.96 Tryon Land Surveying Ltd. 35,454.93 Urban Systems Ltd. ‐ FSJ 33,835.03 Vimar Equipment Ltd. 444,315.18 VISA‐US Bank National Association 464,820.56 Waterhouse Environmental Services Corp. 35,149.53 Western Financial Group (Fernie) 211,887.00 Wide Sky Disposal (1989) Ltd. 924,104.53 Workers Compensation Brd of BC 118,915.63 WR Meadows 48,470.90 Young, Anderson Barristers & Solicitors 25,623.80 TOTAL $25,000 OR MORE 50,906,956.08

Accounts Paid under $25,000 2,569,524.08GRAND TOTAL 53,476,480.16

Reconciliation of Payments to Suppliers to the Financial StatementsThe schedule of payments to suppliers is on a "cash basis" listing and therefore the total will differ significantly from the expenses in the consolidated financial statements which are reported on an accrual basis resulting in timing differences. Furthermore, there are disbursements on this report which are not considered expenses for financial statement purposes including payments made to other taxing authorities, government agencies and employee payroll deductions.

Consolidated Financial StatementsFor the Year Ended December 31, 2015

For the Year Ended December 31, 2015

Table of Contents

Management Responsibility 1Independent Audit Report 2Consolidated Statement of Financial Position 3Consolidated Statement of Operations 4Consolidated Statement of Changes in Net Financial Liabilities 5Consolidated Statement of Cash Flows 6Significant Accounting Policies 7Notes to Consolidated Financial Statements 11


Management Responsibility

The accompanying financial statements of the Northern Rockies Regional Municipality (the "Regional Municipality)are the responsibility of management and have been prepared in compliance with legislation, and in accordancewith Canadian public sector accounting standards for local governments as recommended by the Public SectorAccounting Board of the Canadian Institute of Chartered Accountants. A summary of the significant accountingpolicies are described within the financial statements. The preparation of financial statements necessarily involvesthe use of estimates based on management's judgment, particularly when transactions affecting the currentaccounting period cannot be finalized with certainty until future periods.

The Regional Municipality's management maintains a system of internal controls designed to provide reasonableassurance that assets are safeguarded, transactions are properly authorized and recorded in compliance withlegislative and regulatory requirements, and reliable financial information is available on a timely basis forpreparation of the financial statements. These systems are monitored and evaluated by management.

Mayor and Council meet with management and the external auditor to review the financial statements anddiscuss any significant financial reporting or internal control matters prior to their approval of the financialstatements.

The financial statements have been audited by Sander Rose Bone Grindle LLP, independent auditors of theRegional Municipality. The accompanying Independent Auditors' Report outlines their responsibilities, the scopeof their examination and their opinion on the Regional Municipality's financial statements.

Chief Administrative Officer Director of Finance

1

tthurbide

Stamp

tthurbide

Stamp


Consolidated Statement of Financial Position

December 31, 2015

2015 2014

Financial AssetsCash and cash equivalents $ 1,353,267 $ 21,876,902

Short term investments 15,269,059 187,175

Accounts receivable (Note 1) 6,794,351 2,498,687

Land for sale 4,467,336 4,446,735

MFA Deposits ‐ 22,467

Tax sale properties (Note 2) ‐ 13,006

Mortgage receivable (Note 3) 261,906 275,395

28,145,919 29,320,367

LiabilitiesShort term borrowing (Note 5) 27,000,000 32,000,000

Accounts payable and accrued liabilities (Note 6) 4,915,009 7,006,068

Due to Northern Rockies Regional Hospital District 1,634,019 1,593,790

Deferred Revenue 19,493 34,504

Debenture debt (Note 7) 16,670,492 17,509,646

Capital lease obligations (Note 8) 401,037 581,371

(50,640,050) (58,725,379)

Net Debt (22,494,131) (29,405,012)

Non‐Financial AssetsTangible capital assets (Note 10) 189,731,089 179,948,818

Prepaid expenses 64,146 ‐

Inventory 128,778 128,778

189,924,013 180,077,596

Accumulated Surplus(Note 9) $ 167,429,882 $ 150,672,584

Approved by:

______________________________________

Toni Thurbide, Director of Finance

See accompanying notes to consolidated financial statements3

tthurbide

Stamp


Consolidated Statement of Operations


Budget 2015 2014

RevenueTaxation $ 28,580,970 $ 42,456,735 $ 42,842,723

Collected for other governments ‐ (13,861,543) (14,184,612)

Taxation, net 28,580,970 28,595,192 28,658,111Government transfers 22,791,310 15,253,991 1,230,327

Fees and charges 4,892,800 4,789,135 5,310,536

Land sales ‐ 75,265 435,314

Actuarial adjustments ‐ 275,075 266,038

Gain/loss on disposal of TCA ‐ 127,920 (7,812)

Total revenue 56,265,080 49,116,578 35,892,514

ExpensesGeneral government 3,095,870 3,244,772 2,875,702

Protective services 4,407,870 3,843,620 3,588,800

Utilities 3,188,750 4,344,121 3,852,187

Community development 1,858,510 1,478,415 1,648,088

Recreation & culture 6,043,470 8,108,416 6,452,983

Transportation services 5,611,610 7,872,564 5,948,019

Solid waste management 1,323,050 1,125,436 1,085,751

Cemetery 34,390 33,313 28,063

Airport 1,608,760 2,281,640 2,102,444

Land development ‐ 26,983 277,469

Total expenses 27,172,280 32,359,280 27,859,506

Annual surplus/(deficit) 29,092,800 16,757,298 8,033,008Accumulated surplus, beginning of year ‐ 150,672,584 143,554,823

Prior period adjustment(Note 11) ‐ ‐ (915,247)

Accumulated surplus, beginning of year, restated ‐ 150,672,584 142,639,576

Accumulated surplus, end of year $ 29,092,800 $ 167,429,882 $ 150,672,584



Consolidated Statement of Changes in Net Financial Liabilities


Budget 2015 2014Excess Revenue Over Expense $ 29,092,800 $ 16,757,298 $ 8,033,008

TCA ‐ capitalized in year (37,728,670) (15,774,651) (27,787,672)

Amortization of tangible capital assets ‐ 5,962,682 4,985,333

Proceeds from disposal of tangible capital assets ‐ 157,618 53,482

Gain/loss on disposal of TCA ‐ (127,920) 7,812

Change in inventory ‐ ‐ (128,778)

Change in prepaid expenses ‐ (64,146) 5,704

Decrease (increase) in Net Financial Liabilities (8,635,870) 6,910,881 (14,831,111)Net Financial Liabilities, beginning of year ‐ (29,405,012) (14,573,901)

Net Financial Liabilities, end of year $ (8,635,870) $ (22,494,131) $ (29,405,012)



Consolidated Statement of Cash Flows

For the Year Ended December 31, 20152015 2014

Operating ActivitiesExcess revenue over expenses $ 16,757,298 $ 8,033,008

Amortization of tangible capital assets 5,962,682 4,985,333

(Gain)/loss on disposal of tangible capital assets (127,920) 7,812

Decrease (increase) in receivables (4,295,664) (1,549)

Decrease (increase) in property held for resale (20,601) 212,247

Decrease (increase) in prepaid expenses (64,146) 5,704

Decrease (increase) in tax sale properties 13,006 (13,006)

Decrease (increase) in inventory ‐ (128,778)

Decrease (increase) in MFA deposits 22,467 (22,467)

Increase (decrease) in short term borrowing (5,000,000) 29,253,340

Increase (decrease) in accounts payable and accrued liabilities (2,091,059) 1,384,482

Increase (decrease) in deferred revenue (15,011) 33,237

11,141,052 43,749,363

Investing ActivitiesAcquisition of tangible capital assets (15,774,651) (27,787,673)

Proceeds from disposal of tangible capital assets 157,618 53,482

Mortgage receivable 13,489 (275,395)

(15,603,544) (28,009,586)

Financing ActivitiesRepayment of long term debt (839,154) 1,427,933

Repayment of capital leases (180,334) (175,802)

Due to Northern Rockies Regional Hospital District 40,229 (56,892)

(979,259) 1,195,239

Net cash increase (decreases) in cash and cash equivalents (5,441,751) 16,935,016Cash and cash equivalents at beginning of period 22,064,077 5,129,061

Cash and cash equivalents at end of period $ 16,622,326 $ 22,064,077

Cash and cash equivalents consist of the following:

Cash and cash equivalents $ 1,353,267 $ 21,876,902

Short term investments 15,269,059 187,175

$ 16,622,326 $ 22,064,077



Significant Accounting Policies


The Northern Rockies Regional Municipality was incorporated in the Province of British Columbia onFebruary 6, 2009 and its principal activities include the provision of legislative; administrative;protective; utility; planning and development; recreation and culture; and transportation services toits residents. The Northern Rockies Regional Municipality is a continuation of the Town of Fort Nelsonand Northern Rockies Regional District, which were amalgamated on February 6, 2009.

The consolidated financial statements have been prepared by management in accordance withCanadian generally accepted accounting principles for governments as recommended by the PublicSector Accounting Board ("PSAB") of the Canadian Institute of Chartered Accountants.

Significant accounting policies adopted by the regional municipality are as follows:

Basis of consolidation

The financial statements include a combination of all the assets, liabilities, accumulated surplus,revenues and expenses of all of the regional municipality's activities and funds. All material inter‐departmental balances and organizational transactions have been eliminated.

The regional municipality entered into a joint venture called NRM Industrial Subdivision Joint Venturein the development of light industrial lands. In accordance with PS 3060, Government Partnership, ofthe Public Sector Accounting Board handbook, the regional municipality is required to account for theJoint Venture using proportionate consolidation. Accordingly, the consolidated financial statementsinclude 50% of the accounts of the joint venture.

The Cemetery Trust, Employee Trust and Invasive Plant Trust Funds are administered by the regionalmunicipality and are specifically excluded from the consolidated financial statements and are reportedseparately (Note 13).

Basis of accounting

The regional municipality follows the accrual method of accounting for revenues and expenses. Prioryear's amounts have been restated to conform with the current year's presentation.

Land Held for Resale

Land held for resale is measured at the lower of cost and net realizable value. Cost consists of materialcosts, subconstrator costs, and other costs incurred in bringing the land to their present location andcondition. Costs of land for sale are segregated for specific projects and are assigned by using specificidentification of their individual costs. Net realizable value is the estimated selling price in the ordinarycourse of business less estimated costs of completion and the estimated selling costs.

Mortgage receivable

Mortgage receivable is recorded at principal amount, less any allowance for anticipated losses, plusaccrued interest. Interest revenue is recorded on the accrual basis.

7




Inventory

Inventory consists of residential curbside collection carts distributed to residences. Inventory isrecorded at cost.

Expenses

Expenses are recorded in the period in which the goods or services are acquired and a liability isincurred.

Revenue Recognition

Fees and charges revenueCharges for permits, licences, leases, user fees (recreation, solid waste, water, waste water andairport) are included in this category. These revenues are recorded on the accrual basis andrecognized when earned.

Government transfersGovernment transfers are recognized as revenue in the period that the transfer is authorized, eligibilitycriteria, if any, have been met by the regional municipality, and a reasonable estimate of the amountto be received can be made.

Taxation revenueAnnual levies for non‐optional municipal services and general administration services are recorded astaxes for municipal purposes. Levies imposed by other taxing authorities are not included as taxes formunicipal purposes. Taxes are recognized as revenue in the year they are levied.

Through the British Columbia Assessments appeal process taxes may be adjusted by way ofsupplementary roll adjustments. The effects of these adjustments on taxes are recognized at the timethey are awarded.

Use of Estimates

Management has made estimates and assumptions that affect the amount reported in preparing thesefinancial statements. Significant areas requiring the use of management estimates relate to thedetermination of tangible capital assets historical cost, estimated useful life and related amortization,and landfill post closure costs. Actual results could differ from the estimates.

Budget Information

Unaudited budget information, presented on a basis consistent with that used for actual results andexcluding amortization, was included in the Northern Rockies Regional Municipality Consolidated FiveYear Plan and was adopted through Bylaw No. 115,2015 on April 27, 2015.

8




Financial Instruments

The regional municipality's financial instruments consist of short term investments, accountsreceivable, short term borrowing, accounts payable and accrued liabilities, amounts due to NorthernRockies Regional Hospital District, debenture debt and capital lease obligations. Unless otherwisenoted, it is management's opinion that the regional municipality is not exposed to significant interest,currency or credit risks arising from these financial instruments. The fair value of these financialinstruments approximate their carrying value, unless otherwise noted.

Reserve for Future Expenses

Reserves for future expenses are non‐statutory reserves which represent an appropriation of surplusfor specific purposes. Transfers to reserves for future expenses include funds to finance incompleteprojects and accumulations for specific purposes.

Statutory Reserve Funds

The use of these funds is restricted by the Community Charter and associated Municipal Bylaws.Statutory reserve funds are funded 100% by cash.

Work in Progress

Work in progress represents capital projects under construction but not yet completed and are valuedat cost. The purchase and development of land for residential subdivisions is held in work in progresswhile road and utility services are being constructed.

9




Tangible Capital Assets

The regional municipality records physical assets including assets held under capital lease, at cost inthe period they were acquired or when the asset is put into use.

Tangible capital assets are recorded at cost, net of disposals, write‐downs and amortization. Theuseful life is applied on a straight line basis to calculate amortization. A full year of amortization isclaimed in the year of acquisition, providing the asset is in use, and no amortization is claimed in theyear of disposal.

Useful LifeLand n/a

Land improvements 15 ‐ 25 years

Buildings 20 ‐ 50 years

Machinery and equipment 5 ‐ 15 years

Vehicles 6 ‐ 15 years

Transportation infrastructure 5 ‐ 50 years

Sewer infrastructure 25 ‐ 80 years

Water infrastructure 25 ‐ 80 years

Airport infrastructure 15 ‐ 60 years

10


Notes to Consolidated Financial Statements


The notes to the consolidated financial statements are an intergral part of the statements. They explain thereporting policies and principles underlying these statements. They also provide relevant supplementaryinformation and explanations which cannot be conveniently expressed in the consolidated financial statement.

1. Accounts Receivables

Accounts receivable are recorded net of allowance and are comprised of the following:

2015 2014Trade accounts and other $ 522,473 $ 905,384

Property taxes receivable 1,490,878 968,105

Due from senior governments 4,781,000 625,198

$ 6,794,351 $ 2,498,687

2. Tax Sale Properties

Property acquired for taxes subject to redemption are as follows:2015 2014

Opening balance $ 13,006 $ ‐

Additions ‐ 13,006

Redemptions (13,006) ‐

$ ‐ $ 13,006

3. Mortgage Receivable

2015 2014 Mortgage receivable, which represents 50% interest in mortgage granted

through vendor financing on the sale of land by the Joint Venture,repayable in monthly instalments of $4,492 including interest at 5%. Due February 5, 2017. $ 261,906 $ 275,395

4. Line of Credit

The regional municipality holds a line of credit which includes a demand operating facility of up to$995,000. The balance of the line of credit was $ NIL (2014: $ NIL) at December 31st. This facilitybears interest at prime rate plus 1.25% per annum.

11




5. Short Term Borrowing

The regional municipality obtained short term borrowing issued through the Municipal FinanceAuthority at an annual rate of 1.8%.

6. Accounts payable and accrued expenses

Accounts payable consist of the following:

2015 2014Wages and accrued benefits $ 1,017,877 $ 1,192,809

Payable to trust accounts 101,556 113,551

Trade accounts payable 1,642,210 3,737,260

AP ‐ Other Governments 903,882 548,693

Landfill closure/post‐closure liability 902,196 902,196

Refundable deposits 272,320 268,601

Subdivision development 74,968 218,457

Tax Sale Deposits ‐ 24,501

$ 4,915,009 $ 7,006,068

7. Long‐term debt

The regional municipality issues debt instruments through the Municipal Finance Authority (the"MFA") pursuant to security issuing bylaws under authority of the Community Charter to financecertain capital expenditures. Sinking fund balances, managed by the MFA, are used to reduce longterm debt.

Interest rates on long term debt range from 3.0 % to 5.15%. The average interest rate was 3.99%(2014 ‐ 3.99%).

Gross amount of debt and the amount of the sinking fund assets available to retire the debt are asfollows:

Gross DebtSinking Fund

Assets2015

Net Debt2014

Net DebtGeneral capital fund $ 8,000,000 1,126,619 $ 6,873,381 $ 7,053,867

Water utility capital fund 14,126,661 5,257,297 8,869,365 9,434,137

Sewer utility capital fund 1,841,416 913,670 927,746 1,021,642

$ 23,968,077 7,297,586 $ 16,670,492 $17,509,646

12




7. Long‐term debtCurrent period and future aggregate payments of net outstanding debenture debt over the next fiveyears are as follows:

2016 $ 564,080

2017 539,879

2018 539,879

2019 539,879

2020 484,533

Scheduled debt repayments may be suspended in the event of excess sinking fund within the MFA.Principal paid during the year was $564,080 (2014 ‐ $552,688). Interest paid during the year was$1,013,605 (2014 ‐ $981,866).

Municipal Finance Authority Debt Reserve Fund

The Municipal Finance Authority of British Columbia provides capital financing for municipalities. TheAuthority is required to establish a Debt Reserve Fund. The regional municipality is required to payinto the Debt Reserve Fund certain amounts set out in the debt agreements. The Authority pays intothe Debt Reserve Fund these monies from which interest earned thereon less administrative expensesbecomes an obligation to the regional municipality. It must then use this fund if at any time there areinsufficient funds to meet payments on its obligations. When this occurs the regional municipality maybe called upon to restore the fund.

Upon maturity of a debt issue, the unused portion of the Debt Reserve Fund established for that issuewill be discharged to the regional municipality. The proceeds from these discharges will be credited toincome in the year they are received. As at December 31, 2015 the total of the regional municipality'sMFA Debt Reserve Fund is comprised of:

2015 2014Cash deposits $ 355,318 $ 347,219

Demand notes 658,850 658,850

$ 1,014,168 $ 1,006,069

13




8. Capital Lease Obligations

The regional municipality has the following obligations under capital leases:2015 2014

Finance contract repayable in monthly instalments of $1,911including interest at 2%, secured by certain equipment $ 22,627 $ 44,937

Finance contract repayable in monthly instalments of $2,696including interest at 2%, secured by certain equipment 289,550 316,431

Finance contract repayable in monthly instalments of $11,171including interest at 2%, secured by certain equipment 88,860 220,003

$ 401,037 $ 581,371

Minimum future lease obligation payments over the next five years, assuming no change in terms orinterest rates, are as follows:

2016 $ 402,941

14




9. Accumulated Surplus

Accumulated surplus consists of individual fund surplus and reserves and reserve funds as follows:2015 2014

Surplus, balance as restatedInvestment in tangible capital assets $ 137,790,829 $ 121,989,069General 14,845,276 14,188,205Water utility 1,822,147 2,426,373Sewer utility 1,204,885 1,085,988Joint venture 667,131 680,697

156,330,268 140,370,332Appropriated reservesCouncil gift reserve 3,144 3,144Punch bowl reserve 1,439 1,439Solid waste future expense reserve 1,215,000 1,215,000Airport working fund reserve 100,000 100,000Airport future expense reserve 747,515 747,515Airport equipment future expense reserve 814,868 814,868Museum working fund reserve 10,000 10,000Museum future expense reserve 1,168,378 1,155,100Golf course future expense reserve 208,126 313,542Library working fund reserve 273 273Library future expense reserve 7,410 10,910Library equipment future expense reserve 14,500 14,500Theatre working fund reserve 61,486 48,920Theatre future expense reserve 269,750 249,750Sidewalk reserve 3,307 3,307Reserve for Roads 474,970 ‐Town square improvement reserve 4,733 4,733Infrastructure reserve 1,934,000 1,934,000Parkland/development charges reserve 32,755 32,755Reserve for Building 500,000 ‐292 Water reserve 38,691 38,691Rural water west reserve 112,143 112,143Water utility future expense reserve 416,190 416,190Sewer utility reserve 56,630 56,630

8,195,308 7,283,410Statutory Reserve FundsFeasibility Study Reserve Fund 92,012 92,012Tax Sale Properties Reserve Fund 52,818 52,818Capital Works, Machinery & Equipment Reserve Fund 243,673 243,673Machinery & Equipment Depreciation Reserve Fund 2,344,124 2,458,660Sewerage System Reserve Fund 119,529 119,529Water Utility Reserve Fund 52,150 52,150

2,904,306 3,018,842$ 167,429,882 $ 150,672,584

15




10. Tangible Capital Assets

LandLand

Improvement Buildings VehiclesMachinery &Equipment

CostBalance, beginning of year $ 4,706,806 $ 1,113,890 $ 68,367,147 $ 4,398,272 $ 11,779,405

Add: additions during year ‐ 939,747 37,469,441 651,061 1,062,929

Less: disposals during year ‐ ‐ ‐ (436,579) (206,205)

Balance, end of year 4,706,806 2,053,637 105,836,588 4,612,754 12,636,129

Accumulated amortization

Balance, beginning of year ‐ 476,167‐

11,557,145 3,228,989 6,517,919

Add: amortization ‐ 95,386 2,173,727 278,802 574,194

Less: accumulatedamortization on disposals ‐ ‐ ‐ (436,579) (194,117)

Balance, end of year ‐ 571,553 13,730,872 3,071,212 6,897,996

Net book value of tangiblecapital assets $ 4,706,806 $ 1,482,084 $ 92,105,716 $ 1,541,542 $ 5,738,133

Work in progress $ 1,510,213 $ 10,150 $ 514,736 $ ‐ $ ‐

Included in the above are the following assets under capital lease.

Cost Acc. Amort2015NBV

2014NBV

Vehicles $ 1,312,485 $ 640,739 $ 671,746 $ 762,246

16

WaterInfrastructure

SewerInfrastructure

RoadsInfrastructure

AirportInfrastructure 2015

2014

$ 41,641,861 $ 17,224,764 $ 47,101,462 $ 20,854,623 $ 217,188,230 $ 215,024,330

‐ 343,466 1,815,602 3,250,871 45,533,117 2,317,128

‐ (43,242) (135,616) (973,833) (1,795,475) (153,228)

41,641,861 17,524,988 48,781,448 23,131,661 260,925,872 217,188,230

13,214,000 8,621,207 20,249,954 14,755,324 78,620,705 73,727,308

641,006 336,808 1,252,312 610,447 5,962,682 4,985,333

‐ (34,582) (135,616) (964,881) (1,765,775) (91,936)

13,855,006 8,923,433 21,366,650 14,400,890 82,817,612 78,620,705

$ 27,786,855 $ 8,601,555 $ 27,414,798 $ 8,730,771 $ 178,108,260 $ 138,567,525

$ ‐ $ 1,377,765 $ 3,904,577 $ 4,305,388 $ 11,622,829 $ 41,381,293




11. Prior period adjustments

In prior years costs relating to the sewer master plan were set up as work‐in‐progess. In 2015 it wasidentifed these costs should have been expensed in the year incurred. This year the RegionalMunicipality has chosen to correct this error and as a result has restated prior year's amounts. Thishas resulted in an decrease to tangible capital assets. The net decrease in surplus is $915,247.

12. Commitments and Contingencies

Pension Liability

The regional municipality and its employees contribute to the Municipal Pension Plan (a jointly‐trusteed pension plan). The board of trustees, representing plan members and employers, isresponsible for administering the Plan, including investment of assets and administration of benefits.The Plan is a multi‐employer defined benefit pension plan. Basic pension benefits are based on aformula. As at December 31, 2014, the Plan has about 185,000 active members and approximately80,000 retired members. Active members include approximately 37,000 contributors from localgovernment.

Every three years, an actuarial valuation is performed to assess the financial position of the plan andadequacy of plan funding. The actuary determines an appropriate combined employer and membercontribution rate to fund the plan. The actuary's calculated contribution rate is based on the entry‐age normal cost method, which produces the long‐term rate of member and employer contributionssufficient to provide benefits for average future entrants to the plan. This rate is then adjusted to theextent there is amortization of any funding deficit.

The most recent actuarial valuation for the Municipal Pension Plan as at December 31, 2012 indicateda $1,370 million funding deficit for basic pension benefits on a going concern basis.

The regional municipality paid $626,886 for employer contributions to the Plan in fiscal 2015, whichrepresents 0.04 percent of the total plan contributions. The regional municipality expects to pay$640,000 for employer contributons in the next fiscal year.

The next valuation will be as at December 31, 2015 with results available in 2016.

Employers participating in the Plan record their pension expense as the amount of employercontributions made during the fiscal year (defined contribution pension plan accounting). This isbecause the plan records accrued liabilities and accrued assets for the Plan in aggregate, resulting inno consistent and reliable basis for allocating the obligation, assets and cost to the individualemployers participating in the Plan.

The regional municipality paid $626,886 (2014 ‐ $588,790) for employer contributions whileemployees contributed $552,852 (2014 ‐ $534,630) to the Plan in fiscal 2015.

18




12. Commitments and Contingencies

Legal Liabilities

The regional municipality is potentially exposed to lawsuits arising from the ordinary course ofoperations. Although the outcome of such matters cannot be predicted with certainty, managementdoes not consider the Regional Municipality's expose to be material to these financial statements.

Landfill Closure and Post‐Closure Costs

Included in payables is $902,196(2014 ‐ $902,196). These amounts represent management's totalestimated liability for landfill closure and post‐closure care. The estimated liability for these costs isrecognized as the landfill site's capacity is used. Estimated total expenses represents the sum of thediscounted future cash flows for closure and post‐closure care activities discounted at an annualestimated borrowing cost of 2%.

Landfill closure and post‐closure care requirements have been defined in accordance with the Ministryof Environment's Landfill Criteria for Municipal Solid Waste and included final covering andlandscaping of the landfill, monitoring groundwater, surface water and landfill gas and erosionsettlement for a period of 25 years. The reported liability is based on estimates and assumptions withrespect to events extending over the remaining life of the landfill. The remaining capacity of thelandfill site is estimated at 767,000 cubic metres, which is 59% of the site's total capacity. The landfillsite is expected to reach capacity in 2078.

13. Trust Funds

In accordance with PSAB recommendations for local governments, trust funds are not included in theregional municipality's consolidated financial statements. The regional municipality administers aCemetery Maintenance Fund for the perpetual care and maintenance of the Regional Municipalyowned and operated cemeteris. As at December 31, 2015 the Cemetery Trust Fund balance is $22,163(2014 ‐ $21,611).

The regional municipality administers an Employee Trust Fund on behalf of its employees. As atDecember 31, 2015 the Employee Trust Fund balance is $2,745 (2014 ‐ $2,745).

The regional municipality administers an Invasive Plant Trust Fund on behalf of the community. As atDecember 31, 2015 the Invasive Plant Trust Fund balance is $74,850 (2014 ‐ $89,196).

19




14. Segmented Disclosure

The Northern Rockies Regional Municipality provides various services within various divisions. Thesegmented information as disclosed in this section reflects those functions offered by the regionalmunicipality as summarized below:

General government ‐ activities related to the administration of the regional municipality as a wholeincluding central administration, finance, human resources, common services and legislativeoperations.

Protective services ‐ activities related to providing for the security of the property and citizens of theregional municipality including, policing, fire protection, emergency planning, building inspection,animal control and bylaw enforcement. The population of the regional municipality was reportedabove 5,000 in 2013 and policing costs were included as of April 1, 2013.

Utility services ‐ activities related to sewer and water utilities. Sewer utility activies are related togathering, treating, transporting, storing and discharging sewage or reclaimed water. Water utilityactivities are related to supplying, storing, treating and transporting water.

Community development services ‐ activities related to community planning, economic devlopmentand tourism.

Recreation and cultural services ‐ activities related to recreational and cultural services including parksand facilities for recreaitonal and cultural activities.

Transportation services ‐ activities related to transportation services including maintenance of roads,sidewalks, street lighting and signage.

Environmental health services ‐ activities related to solid waste management.

Cemetery ‐ activities related to cemetery maintenance

Airport services ‐ activities related to operation of the airport.

Subdivision development ‐ activities related to operation of the NRM Industrial Subdivision JointVenture and specifically the amount consolidated in these financial statements.

20




14. Segmented Disclosure

GeneralGovernment

ProtectiveServices Utilities

CommunityDevelopment

Recreation &Culture

TransportationServices

Solid WasteManagement Cemetery Airport

JointVenture 2015

2014

RevenueTaxation $ 27,601,558 $ ‐ $ 993,634 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 28,595,192 $ 28,658,111

Government transfers 10,810,661 78,035 ‐ 70,758 30,000 ‐ ‐ ‐ 4,264,537 ‐ 15,253,991 1,230,327

Fees and charges 200,530 135,868 1,980,726 37,879 902,134 34,714 600,411 4,310 879,147 13,416 4,789,135 5,310,536

Land sales 75,265 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 75,265 435,314

Actuarial Adjustments ‐ ‐ 237,230 ‐ 37,845 ‐ ‐ ‐ ‐ ‐ 275,075 266,038

Gain/loss on disposal ofTCA 127,920 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 127,920 (7,812)

Total revenue 38,815,934 213,903 3,211,590 108,637 969,979 34,714 600,411 4,310 5,143,684 13,416 49,116,578 35,892,514

ExpensesWages and benefits 1,803,545 1,413,131 1,109,188 788,607 2,959,505 1,027,221 105,729 26,777 636,964 ‐ 9,870,667 9,222,081

Contracted services 635,562 2,145,470 985,765 654,313 777,501 4,570,366 976,492 23 313,768 26,983 11,086,243 9,306,895

Materials and supplies 175,681 142,226 149,782 35,495 575,719 596,870 3,276 2,581 275,559 ‐ 1,957,189 1,766,377

Utilities 94,966 19,438 235,489 ‐ 644,964 140,051 16,983 ‐ 124,516 ‐ 1,276,407 983,985

Transfers ‐ ‐ ‐ ‐ 788,821 ‐ ‐ ‐ ‐ ‐ 788,821 566,772

Amortization 153,818 123,355 1,239,826 ‐ 1,949,906 1,538,056 22,956 3,932 930,833 ‐ 5,962,682 4,985,333

Debt charges ‐ ‐ 624,071 ‐ 412,000 ‐ ‐ ‐ ‐ ‐ 1,036,071 1,028,063

Bad debts 381,200 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 381,200 ‐

Total expense 3,244,772 3,843,620 4,344,121 1,478,415 8,108,416 7,872,564 1,125,436 33,313 2,281,640 26,983 32,359,280 27,859,506

Annual surplus (deficit) $ 35,571,162 $ (3,629,717) $(1,132,531) $ (1,369,778) $(7,138,437) $ (7,837,850) $ (525,025) $ (29,003) $ 2,862,044 $ (13,567) $ 16,757,298 $ 8,033,008

21

tthurbide

Stamp

tthurbide

Text Box

June 27, 2016

lkneller

Rectangle

2015 statement of financial information - civicweb sofi.pdf · section 4 employee department...

Documents