Northern Rockies Regional Municipality 2018 Annual Report by Northern Rockies Regional Municipality

Northern Rockies Regional Municipality

2018 Annual Report

For the year ended December 31, 2018

About This Report

Northern Rockies Regional Municipality Fort Nelson, British Columbia, Canada

Annual Report for the year ending December 31, 2018

Designed and prepared by in cooperation with all Municipal departments June 2019

Photography is the property of the NRRM unless photo credit is included.

This report is available online and is printed in a limited quantity to conserve resources.

Northern Rockies Regional Municipality 2018 Annual Report

Northern Rockies Regional Municipalityâ&#x20AC;&#x2122;s Vision* * In late 2018, the newly elected Regional Council expressed interest in updating their strategic plan and vision, and began this renewal process to be completed in 2019.

The Northern Rockies is a region that balances economic development and the integrity of the natural environment.

Governance

We will be a self-reliant and healthy region. Environment

Social

Pillars of a Sustainable Community

Infrastructure

Economy

We will proudly embrace life in a unique northern community and create innovative solutions that enhance our quality of place. Our communities will be well-planned, safe and welcoming, providing diverse choices and ample opportunities for employment, education, recreation, housing and health and wellness services.

Northern Rockies Regional Municipality 2018 Annual Report

2018 Appointed Officials As of December 31, 2018

Chief Administrative Officer.........................................................................................................Scott Barry

Deputy Chief Administrative Officer............................................................................................Erin La Vale

Corporate Manager......................................................................................................................Ross CoupĂŠ

Deputy Corporate Manager.........................................................................................................Ryan Carter

Information and Privacy Head......................................................................................................Ross CoupĂŠ

Bylaw Dispute Adjudication Screening Officer.............................................................................Leonora Kneller

Director of Finance......................................................................................................................Toni Pike

Deputy Director of Finance/Collector.........................................................................................Tammy Barry

Director of Regional Development and Planning.........................................................................Jaylene MacIver

Approving Officer.........................................................................................................................Jack Stevenson

Chief Building Inspector...............................................................................................................Howard Leaver

Regional Planner ..........................................................................................................................Richard Roy

Regional Development Officers...................................................................................................Mike Gilbert, Jack Stevenson

Director of Public Works.............................................................................................................Lou-Ann Watson

Fire Chief......................................................................................................................................Brian Bailie

Deputy Fire Chief.........................................................................................................................James Childs

Bylaw Enforcement/Peace Officer...............................................................................................Brian Bailie, James Childs, Howard Leaver

Animal Control Bylaw Enforcement Officer/Peace Officer.........................................................James Hart (contractor)

Director of Recreation Services...................................................................................................Harvey Woodland

Recreation Programs Manager.....................................................................................................Krista Pearson

Airport Manager...........................................................................................................................Eric Pike

Northern Rockies Regional Municipality 2018 Annual Report

Contents

2018 Appointed Officials.......................................................................................................................... 3

Northern Rockies Municipal Vision.......................................................................................................... 4

Northern Rockies Regional Council 2014 - 2018.................................................................................... 6

Northern Rockies Regional Council 2018 - 2022.................................................................................... 7

Message from the Mayor......................................................................................................................... 9

Introduction........................................................................................................................................... 10

Major Services........................................................................................................................................ 12

Did You Know?...................................................................................................................................... 14

Infrastructure Development Contribution Agreement (IDCA) Funded Projects.................................. 15

2018 Highlights...................................................................................................................................... 16

2019 Objectives..................................................................................................................................... 28

Northern Rockies Regional Municipality Financial Statements.............................................................. 38

Statement of Permissive Property Tax Exemptions.............................................................................. 64

Contacts................................................................................................................................................. 66

Northern Rockies Regional Municipality 2018 Annual Report

Northern Rockies Regional Council 2014 - 2018

Mayor Bill Streeper

Regional Councillor Kyle Andrews

Regional Councillor Laurie Dolan

Regional Councillor Lorraine Gerwing

Regional Councillor Doug McKee

Regional Councillor Todd Osbourne

Regional Councillor Danny Soles

It is the role of Council to act as the governing body of the municipality, and to represent the best interests of the citizens of the municipality as a whole when making decisions necessary for the successful operation of the municipality. Powers are exercised through resolutions or bylaws passed in open meetings. The Council is a continuing body with changes in its membership by election or appointment; as a collective body, members cannot make binding decisions independently, unless express authority has been granted or legislated. Pursuant to section 111 of the Community Charter, there were no Council members disqualified in 2018.

Northern Rockies Regional Municipality 2018 Annual Report

Northern Rockies Regional Council 2018 - 2022

Regional Councillor Laurie Dolan

Regional Councillor John Roper

Regional Councillor Todd Penney

Mayor Gary Foster

Regional Councillor Kyle Andrews

Regional Councillor Lorraine Gerwing

Regional Councillor Danny Soles

Northern Rockies Regional Municipality 2018 Annual Report

2018 Municipal Election In October 2018, Northern Rockies residents elected a new Regional Council to guide their local government for the following four years.

1,427voters participated

in the election, approximately estimated eligible 44.6% of the voters.

Former Mayor Bill Streeper shakes hands with Mayor Gary Foster at the Statutory Meeting, November 5th, 2018

Message from the Mayor On behalf of the Regional Council of the Northern Rockies it is my pleasure to present the annual report of the municipality. The employees of the municipality work hard every day to bring the people of our region the highest quality service while ensuring tax dollars are spent wisely. In the tough economic times our region is facing I would like to express the gratitude of this council to every employee, and my deep appreciation for the work they do. A special thanks goes out to CAO Scott Barry who continues to show exceptional leadership and skill in guiding this organization and council through some difficult choices. Under CAO Barryâ&#x20AC;&#x2122;s leadership every department has worked to reduce costs while at the same time maintaining services. The results are apparent every single department has come in under budget in 2018.

We continue to be very successful in our efforts to secure grant funding, that has saved taxpayers thousands of dollars and reduced the tax burden on businesses and families. As this council takes office, we will chart a new course, with new priorities, and I am confident we will see a brighter future as we work to revitalize the local forest industry and tourism industry, and search for oil and gas sector opportunities. We appreciate the belief that you have exhibited by voting for this council, and assure you that we will do our best to be deserving of that trust.

Gary Foster, Mayor Northern Rockies Regional Municipality

Northern Rockies Regional Municipality 2018 Annual Report

The NRRM - Our Story Our local government model is unique in BC and difficult to compare with others. Most communities within the Province are served by two local governments: the municipal government, and the regional or special purpose district. Municipal local governments may take on locally based services such as fire protection and city streets while regional districts will most often take on regionally based services where cooperation between cities and unincorporated areas is desired, such as solid waste and regional parks & recreation. In the NRRM, instead of two local governments providing services to in-town and rural residents, all services responsibilities and accountabilities fall to one entity.

of British Columbia that the Northern Rockies signed in April, 2013. The Agreement cements a “mutual interest in seeing the natural gas industry in the NRRM region developed for the benefit of all British Columbians.

When looking at our unique characteristics other than our single local government model, the most obvious feature is the municipality’s vast physical size The Northern Rockies Regional Municipality is large – 85,148 square kilometres which is ten percent of the Province of BC or 2.7 times the size of Vancouver Island. The first of its kind in BC, the Northern Rockies Regional Municipality was formally incorporated on February 6th, 2009. The creation of this unified body means that taxes from this resource-producing rural region now flow to the local government rather than the province, enabling local decision-making and input into spending. Years of effort went into the negotiation of the Infrastructure Development Contribution Agreement (IDCA) with the Province

Northern Rockies Regional Municipality 2018 Annual Report

The NRRM - Our Story Part of the extensive planning that is prerequisite to the IDCA, is the preparation and implementation of a long term asset management plan based on best available practices of this fledgling field. The Northern Rockies partnered with Kerr Wood Leidal Engineering Consultants to prepare an award-winning Asset Management Strategy, to direct spending on this vital facet of municipal management..

In April 2013, the Northern Rockies signed the Infrastructure Development Contribution Agreement (IDCA) with the Province of British Columbia, to serve a â&#x20AC;&#x153;mutual interest in seeing the natural gas industry in the NRRM region developed for the benefit of all British Columbians.â&#x20AC;? The terms of this landmark agreement are founded on the implementation of a cornerstone Multi-Year Infrastructure Development (MYID) plan based on the maintenance and development of the NRRM as a industrial service centre over the twenty-year term of the contract.

Northern Rockies Regional Municipality 2018 Annual Report

Major Services The Municipality is responsible for the provision of good government, services, facilities and other things that are necessary or desirable and develop and maintain safe, viable communities. Several departments work in concert to accomplish effective services. ADMINISTRATION Corporate Services is the information hub of the Municipality that controls, prepares and distributes data. Compliance with regulatory requirements is assured through coordination of records management, agenda preparation, recording of official minutes, preparing and certifying bylaws, and executing all legal documentation on behalf of the Municipality. Corporate Services acts on Council decisions and provides up-to-date procedural, policy and legislative direction to the entire organization This department is also responsible for Bylaw Notice Complaint Screening as well as freedom of information requests. Under the umbrella of Corporate Services, Technological Services provides a common point of contact for all technology issues and is tasked with providing support to all areas of the Municipalityâ&#x20AC;&#x2122;s operations. This department

Northern Rockies Regional Municipality 2018 Annual Report

is also responsible for Mapping & GIS (Geographic Information System), Network/ Data Support, Asset Management, Technology Management and Data Collection /Analysis. Finance is responsible for accounting, financial planning/statements and the safekeeping of the Municipalityâ&#x20AC;&#x2122;s funds and securities. They oversee the investment of funds and ensure that expenditures are made in accordance with Council policy, applicable bylaws, the current municipal budget and relevant legislation. The departmentâ&#x20AC;&#x2122;s cash management function includes payroll, accounts payable/receivable and ongoing financial reporting. OPERATIONS Recreation, Parks and Facilities improves the quality of life of residents in the Northern Rockies Regional Municipality by developing, operating and maintaining high quality facilities, parks, sport fields and regional parks. They also design recreation programming and host special events to foster inclusiveness, accessibility and wellness. The department also preserves the building assets and facilities of the Municipality.

Major Services Public Works is responsible for the installation and maintenance of Urban and Rural Roads and Grounds, Drainage Systems, Water Treatment and Distribution, Wastewater Treatment and Collection, Solid Waste Collection and Operations, Cemetery operations, Equipment Maintenance and provision of common community services.

Public Works performs many day-to-day services including core activities such as snow clearing and hauling for streets and sidewalks, sanding, street sweeping, boulevard maintenance, provision of drinking water, the collection of wastewater, the provision of solid waste collection to urban residential areas and up and down the highway, as well as troubleshooting water, sewer, drainage and storm issues. Public Works also oversees the daily operations of the airport and maintains the airfield, buildings, and equipment to provide safe and efficient aviation facilities for the citizens and visitors to the community. All activities are in compliance with the requirements of all Federal and Provincial regulatory authorities to deliver safe, efficient and reliable operational aviation services. Regional Development and Planning expanded its departmental focus to reflect the scope of its responsibility, and the department name was amended to Regional Development, rather than the previous Community Development. The department continues to promote sound planning and development of our region through the provision of information and service to Regional Council, the development community and the general public. This also includes the preparation and

administration of land use regulations and bylaws by means of building and development permitting. As part of the departmentâ&#x20AC;&#x2122;s function, Economic Development and Tourism focuses on strengthening the economy across all sectors of Fort Nelson and the outlying communities of the Northern Rockies Regional Municipality. Engaging in activities to promote economic diversification and attract and retain business, they seek to develop core amenities including medical services and educational opportunities. Fire Rescue and Bylaw Enforcement provides 24-hour fire and emergency rescue services to varying response areas throughout the Regional Municipality. Additionally, Fire Rescue provides fire prevention, fire inspection, public education, public assistance, and bylaw enforcement services. They respond to structure, vehicular and wildland/urban interface fires as well as providing First Responder service and assistance to BC Ambulance Service.

Northern Rockies Regional Municipality 2018 Annual Report

Did you know that the NRRM is involved with the following: • • • • •

Tier 2 regional airport with regularly scheduled flights Full service Fire Rescue department Phoenix Theatre Golf Course Museum

• • • •

1,700 cubic metres (m3) winter sand annual average Water Production annual average 920,000 cubic metres (= 1.8 Billion 500 ml bottles) Treated Wastewater annual average 930,000 cubic metres 65 vehicle Fleet (pick-ups, heavy mobile, specialized)

• • • • • • • • • • • • •

Public Library Year-round Visitor Information Centre (contracted to Chamber of Commerce) Regional Recreation Centre with 2 ice surfaces, indoor skating pond, curling rink and aquatic centre Recreation Programs Municipal and Regional parks and two campgrounds 4.7 km of paved recreation trails Municipal Office: Finance, Corporate Services, Regional Development and Planning Public Works department 11 landfills (1 active, 10 decommissioned) 50 km of urban (paved) roads (Road Asset Management Plan) 145 km of rural (gravel) roads (Road Asset Management Plan) 22.3 km Sidewalks (varying types and widths) Municipal Streetlights 265 municipally-owned, 325 leased from BC Hydro

• • • • • • • • • • • • • • •

85 km of Water Transmission and Distribution 8 Water Distribution Pumphouses 4 Water Pressure Reducing Stations 5 Treated Water Reservoirs 349 Hydrants and Valves 500 Mainline Valves 1,457 Industrial-Commercial-Institutional (ICI) Water Service Connections 1,412 Residential Service Connections 45 km of Sewer Collection Mains 1,300 Wastewater Service Connections 523 Manholes Rural Roads Maintenance Contract Solid Waste Operations and Collections Contracts Residential Curbside Collection Contract FNFN Water Maintenance Contract

Northern Rockies Regional Municipality 2018 Annual Report

2018 Highlights Infrastructure Development Contribution Agreement (IDCA) Funded Projects The Infrastructure Development Contribution Agreement (IDCA) with the Province of BC provides up to $10 million per year from 2016 to 2035 in matching funding for capital expenditures. The process requires input, analysis and discussion during the development of the mandated Multi-Year Infrastructure Development Plan (MYIDP), the Five-Year Capital Expenditure Plan (CEP) and the Annual Infrastructure Development Plan (AIDP). Given the integration with the NRRM’s Asset Management Plan (AMP) led by consultant, Kerr Wood Leidal (KWL), it is important that the AMP is synchronized with the IDCA requirements on an ongoing basis.

bringing the total funding received to date to $40 million. To support this, the NRRM has expended $66 million directly on capital projects included in the IDCA program. An additional $13.6 million in grant funding from other sources has been leveraged. In June 2013, the Municipality held a successful referendum for Loan Authorization Bylaw No. 85, 2013, authorizing borrowing in the amount of $52,570,690. The NRRM used significantly less than the total authorized and before the Bylaw expires at the end of 2018, $15 million will be transferred to a long-term debenture, converting temporary borrowing incurred in relation to the recreation centre. WIth no new borrowing in 2018, the remainder of the temporary borrowing will be paid off in 2019.

2018 Annual Infrastructure Development Plan (AIDP) In accordance with the IDCA, a new Annual Infrastructure Development Plan is prepared annually to reflect acrual conditions, and inform adaptation of medium and long-term plans. The objectives of the AIDP are: • to provide detailed reporting annually • to provide Council with the basis for making infrastructure decisions • to obtain funding approval These infrastructure investments will be funded through annual revenue and grants. The portion of funds carried forward from 2017 was associated with ongoing projects, and does not include IDCA funding. The Province of BC approved the fourth payment under the twentyyear IDCA for the full $10 million in 2018 to support the annual AIDP,

Annual Infrastructure Development Plan (AIDP) Project Funding Sources 2015-2018 $40.0 M 34%

IDCA Funds Other Grants

$66.0 M 55%

NRRM Funds $13.6 M 11%

Northern Rockies Regional Municipality 2018 Annual Report

2018 Highlights Regional Council Regional Council experienced another busy year in 2018. At the 87 meetings held in 2018, Regional Council made 661 resolutions, reviewed 111 administration reports and passed 22 bylaws.

development of Memorandums of Understanding (MOUs) with various ministries was also initiated to inform the implementation process.

As part of their commitment to enhanced communication of municipal functions, there were 161 “Latest News” items posted to the municipal website (up from 99 in 2017) and 229 Facebook posts (up from 174 in 2017). The NRRM Facebook account also increased its reach from 716 to 962 followers in 2018.

A Regional Economic Strategy (RES) was undertaken in 2018, utilizing $82,500 in Gas Tax grant funding, with the RES rollout scheduled for mid-2019. A key component in the development of a RES is business and public engagement. With this in mind, members of the business community were successfully recruited to an advisory Working Group to provide guidance to staff and Lions Gate Consulting Inc. in the execution of the RES project. Working Group members from across economic sectors assisted in identifying invitees to the various Focus Groups representing the categories of Agriculture, Forestry, General Business and Transportation, Home-based Business, Not-for-Profit/ Public Sector, Oil and Gas, Retail/Commercial, and Tourism. Discussion sessions were held in Toad River, Muncho Lake and at the Fort Nelson First Nation. Community and business input was secured through two distinct surveys.

2018 was an especially exciting year with the general local election taking place in October. In total, 12 candidates (the highest amount in over a decade) ran for mayor or regional councillor positions. The Northern Rockies Regional Municipality also hosted the 2018 North Central Local Government Association Conference, which brought over 180 local government, senior government and business delegates to the community in May. During this conference, Regional Council was able to showcase the amazing Northern Rockies region, and work with other jurisdictions on areas of shared interest.

Regional Development & Planning As in recent years, a majority of the 2018 projects were aimed at driving regional growth and economic diversification. Planning & Land Use With the adoption of the Rural Official Community Plan and Rural Zoning Bylaws in May, 2017, a need was uncovered for refinement of internal processes for undertaking any required amendments. The Northern Rockies Regional Municipality 2018 Annual Report

Regional Development

In February, 2018 a consultant (Stantec) was engaged to provide a professional review of the Boreal Caribou Restoration Implementation Plan (BCRIP), particularly in terms of lost economic opportunity to the NRRM. The report, “Key Findings of the Economic Impact of Boreal Caribou Habitat Recovery Measures in the Northern Rockies Regional Municipality” is the first impact report in Canada that relates to specific Boreal Caribou recovery measures, and quantifies the potential cost to a local economy. This information is invaluable in discussions with senior levels of government as they act to protect Boreal Caribou.

2018 Highlights Regional Development & Planning (continued) Economic Development The Phase 2 Aspen Study has involved funding from the provincial Rural Dividend Fund, Northern Development Initiative Trust (NDIT) and not-for-profit FPInnovations (Vancouver) to supplement the NRRM’s contribution. The study is nearing completion and will provide considerable technical and marketing information, as well as investor contacts, to create a very comprehensive investor package. This will be a significant tool for attracting forest sector investment to the Northern Rockies. FPInnovations is now working on an overview document that would introduce the research completed for the final investor package. The NRRM has engaged with a design firm familiar with the creation of investor packages to assist in assembling the resources and formatting the package in a professional layout. The Fort Nelson Community Forest (CFA) initiative is a joint undertaking with the NRRM and the Fort Nelson First Nation (FNFN). Minimal public comments were received relating to the CFA prior to the July 1st, 2018 deadline, with a “Frequently Asked Questions (FAQ’s)” document published in July to address common areas of concern. The draft application/Management Plan was submitted to Ministry of Forests, Lands and Natural Resource Operations (MFLNRO) staff on August 10th for preliminary review, with a follow-up discussion to their comments with regard to the Management Plan. The Partners agreed to complete an additional analysis of the proposed CFA timber supply area utilizing the revised/increased CFA boundaries resulting from earlier discussions with the Ministry. The revised Timber Supply Analysis and Data Package was reviewed with the Ministry in September, with the Ministry accepting the 17

package as presented. A final Fort Nelson Community Forest Timber Supply Analysis and Data Package was also submitted to the Ministry. Together with letters of support, the full CFA package was submitted before the deadline of October 15, 2018. Tourism In 2007, the NRRM completed a Tourism Strategic Plan which has remained the principle guiding document for the activities associated with tourism destination development and marketing for the region. In 2013, the NRRM participated in Tourism BC’s Community Tourism Foundations Program, which resulted in a final report summarizing a number objectives, as well as strategies and tactics to achieve them. In the summer of 2016, Destination BC (DBC) announced the beginning of their regional Destination Development Program. Throughout the course of the past two years, the NRRM has actively participated in the Program, with the final outcome being a 10-year Northeast BC Destination Development Strategy.

2018 august september 2018 october 15 2018 december 2019 january 2019 january

2019 february

Northern Rockies Regional Municipality 2018 Annual Report

2018 Highlights Regional Development & Planning Tourism (continued) The NRRM takes a lead role in the Northeast BC Tourism Marketing Cooperative which includes 8 communities across NEBC to access grant funding for collective, regional marketing through DBC. Promoting the common asset of the Alaska Highway, the Co-Op works together to leverage funds to develop and maintain a regional website (celebratealaskahighway.com), regional social media sites, purchase print advertising, attend two consumer trade shows and community/regional photo and video acquisition. The Northern Rockies Travel Guide, insert foldout map, fishing guide and hunting guide are updated yearly to include the best possible information on roads, stops of interest, businesses and experiences with up to date, inspiring images. Directional and promotional signage throughout the region remains a work in progress, though the inventory and quality of signage has been improved over the past number of years. The NRRM partnered in the development of 3 videos in our region: Wildlife Along the Alaska Highway featuring local photographer Ryan Dickie, Virtual Reality (VR) of the MKMA (Muskwa-Kechika Management Area), and Behind the Scenes VR of the MKMA. These assets are owned by DBC and have had significant distribution on the provincial tourism social media channels and websites.

Northern Rockies Regional Municipality 2018 Annual Report

The Fort Nelson Visitor Centre is operated through a contract for service with the Fort Nelson and District Chamber of Commerce. This contract includes deliverables such as: staffing the Visitor Centre with highly trained visitor counsellors, delivery of the Welcome Visitor Program, responding to inquiries and online communications in a timely manner, ensuring all relevant publications are well-stocked, current and accurate, assembling and maintaining stock of the Northern Rockies Travel Guide, and achieve the Visitor Centre goals, strategies and tactics as described by DBC, including: enhancing visitor satisfaction, providing a comfortable setting, increasing visitor length of staying region, and supporting/promoting local and regional events. Over the past 3 years the NRRM has facilitated a partnership program with regional operators along the Northern Rockies Alaska Highway corridor to offer washroom facilities to the travelling public. The partnership program was created in response to the devolution of facilities from the Province/Federal government to the local government level and ongoing challenges related to maintenance of those remaining. In 2018 the NRRM was involved in a pilot project in partnership with the Ministry of Transportation and Infrastructure and Public Works and Government Services Canada to install and maintain washroom facilities at Trutch (Mile 202), with the goal of similar facilities being developed on the northern section of the Alaska Highway in the future.

2018 Highlights Regional Development & Planning Community Health In the fall of 2017, more than 500 community members residing in Fort Nelson and the Northern Rockies shared their views on health by taking part in questionnaires, meetings and interviews. Using this feedback, the Community Health Plan: Looking to 2020 was created. A number of priority areas came from the consultations, with the six items listed below viewed as priorities: 1. Increase efforts to recruit and retain health care providers 2. Improve health care travel services, improve support for people who have to travel for health care and improve emer gency response and transfers. 3. Improve maternity care locally, from prenatal registry to birthi ng and post-care 4. Increase visiting health services and the use of tele-health (to provide local services and to reduce travel 5. Improve cancer care locally

6. Improve mental health and substance use services by increas ing collaboration between service providers and expanding the range and impact of services

Together the Northern Rockies Regional Municipality (NRRM), Fort Nelson First Nation (FNFN) and the Northern Health Authority have formed a steering committee to act on the identified priorities. In 2018, Shayna Dolan was enlisted to act as the Community Health Plan Implementation Lead, a position that is jointly funded by the steering committee members. 19

Northern Rockies Regional Municipality 2018 Annual Report

2018 Highlights Recreation The Recreation Centre was host to several activities generously sponsored by local organizations in 2018, including: • Save On Foods • Canadian Union of Public Employees (CUPE) Local 2167 • Enbridge • Fort Nelson IDA • Kerr Wood Leidal (KWL) Engineering • International Assn. of Firefighters (IAFF) • Women of Industry (Spooktacular Swim) • Fort Nelson Rotary Club School District No. 81, Fort Nelson Curling Club, Fort Nelson Public Library, Poplar Hills Golf Course and other community groups and community members continue to provide support to recreation programs through provision of space and/or volunteers. In January a new computer registration platform, PerfectMind (PM) was implemented. This program not only boasts a lower operating cost, it has made registering for programs much more convenient and patrons no longer are charged a 6.5% “convenience charge” as with the former registration software provider. In place for several years, the Leisure Access Program (LAP) is an income-qualified program to help ensure that all families have access to recreation activities. Low income families can access the LAP program with proof of income and receive a 75% discount on registered programs as well as drop-in swim passes. The LAP Program had 131 participants at the end of 2018.

In 2018, the Recreation Centre received the following grant funding: Northern Development Initiative Trust

New Tables & Chairs

$22,714

WorkBC

Casual Summer Employees

$49,325

BC Recreation & Parks Assn. (BCRPA)

Family Day Sponsor

$1,000

Government of Canada

Canada Day Sponsor

$2,000

Northern Rockies RCMP

Xplore Sports Sponsor

$1,000

Northern Health Imagine Grant

ball hockey, lacrosse equipment, caged helmets

$3,000

Northern Rockies Regional Municipality 2018 Annual Report

2018 Highlights Recreation (continued) Some of the most successful events in 2018 were: • North Central Local Government Assn. (NCLGA) Conference • Community Musical • Easter Eggstravaganza • Community Easter Egg Hunt • Preschool Health Roundup • Summit Run-It • Canada Day • 5K Run/Walk & Yoga • Teddy Bear Picnic • Watchamacallit • Half Marathon & Fun Run • Spookerama • Christmas Craft Fair • Christmas Tree Light Up • Skate With Santa

Protective Services Protective Services encompasses Fire Rescue, Emergency Operations, Bylaw Enforcement and Animal Control. In 2018, property value that was at risk of loss due to fire incident was approximately $50 million, with a value preserved of $46 million, for a total loss of $4.6 million. Emergency fire rescue calls totalled 289 for the year. Fire 89 BC 2 Public Safety Medical 55 Haz-Mat 22 City Call Rescue 43 Investigation 41 Northern Rockies Regional Municipality 2018 Annual Report

32 5

Bylaw officers responded to over 120 bylaw issue incidents in 2018. The focus of Bylaw Enforcement staff continues to be the achievement of compliance through public education. To this end, in 2018 there were: • 86 business fire inspections completed • 350 public education hours logged as crews participated in community events, station tours, school visits, infant carseat installation and inspections • 80+ members of the public received fire extinguisher and/or safety training Animal Control responded to 85 calls for service, with no animals euthanized by the pound contractor. During the 2018 wildfire season, there was one Emergency Operations Centre (EOC) activation for the Radar Road fire that involved the evacuation of nearby residents. 22

2018 Highlights Protective Services (continued) The NRRM hosted EOC Essentials (EMRG 1320) training as part of a partnership with Emergency Management BC where Justice Institute of BC EOC courses are held in various communities and EOC personnel incur no charges to attend. Over $20,000 of Emergency Social Services (ESS) Group Lodging supplies were purchased using Union of BC Municipalities Community Emergency Preparedness Fund grant monies.

Rural Roads and Grounds A new Rural Roads maintenance contractor commenced work in June, 2018. This new contract resulted in a significant reduction to monthly fixed costs for contracted services, providing the same level of service with reduced resources.

Public Works Urban Roads & Sidewalks Winter Sand consumption rates and subsequent costs have decreased over the years as operators use sand more strategically, reducing unecessary application while still keeping the roads safe for vehicular and pedestrian traffic. Water Treatment and Distribution Filter media used for water filtration and the underdrain system at the Water Treatment Plant trains was replaced resulting in more efficient filtration and backwashing. Total water consumption for 2018 was 831,237 cubic metres (m3) with bulk water sales comprising approximately 4% of the total at 31,940 m3.

Northern Rockies Regional Municipality 2018 Annual Report

2018 Highlights Public Works (continued) Wastewater Collection & Treatment The sewer outfall relocation project was substantially completed in 2018; fencing and landscaping are scheduled for spring of 2019. Sanitary sewer upgrades were also undertaken using trenchless technologies to reduce traffic and residential disruption.

In fall 2018, Council opted to institute vermicomposting as a permanent waste diversion tactic, after seeing positive results from the vermicompost trial. Provisions will be made for the public to drop off organic material at the Transfer Station in early 2019. An expression of interest (EOI) has been submitted to the Organics Infrastructure Program for funding of up to 66% of the cost of required infrastructure improvement for full-scale vermicomposting. The EOI is a mandatory first step in pre-qualifying for submission of a formal grant application in 2019. Major Maintenance & Capital Projects

Solid Waste Management The NRRM Solid Waste Management Plan was approved by the Ministry of Environment in 2018. The landfill contract was successfully awarded for a three-year term. Landfill hours of operation were reduced from 48 hours to 40 hours per week, resulting in contract cost reductions of $15,000 per month.

Northern Rockies Regional Municipality 2018 Annual Report

• Major gravel road works in 2018 included the surfacing of several gravel roads at Fediw Subdivision, Fairway Drive, Caribou Way and Whitetail Way as well as major culvert repairs at McConachie Creek • The NRRM and the Ministry of Transportation & Infrastructure partnered to install a pedestrian crosswalk connecting the Museum and the Visitor Information Centre • Structural rehabilitation of 53 Avenue West including enhanced drainage • Functional paving of 50 Avenue South between 50 and 55 Streets and on 47 Street between Sunset Drive and Boundary Crescent • The Water Treatment Plant Dissolved Air Flotation (DAF) project was largely completed, with commissioning expected by June 2019 • Bulk Water Station concrete pad and glycol heating system was repaired • 55 Street drainage program was completed which included replacement/upsizing of existing insufficient culverts Efforts continue to maintain service levels and increase efficiency while supporting the local economy wherever practical through the use of competitive and qualified local contractors. 24

Northern Rockies Regional Municipality 2018 Annual Report

2018 Highlights Airport The NRRM has been working to replace the Transport Canada Safety Management Systems (SMS) Manual pursuant to requirements. The airport has also seen a review of the first draft of an airport Asset Management System, funded largely through a $15,000 grant from the Union of BC Municipalities and a $50,000 grant from the Federation of Canadian Municipalities. An asset management system is critical to maintaining infrastructure.

• Fencing was installed at the Water Treatment Plant lagoons • Mulching of brush around runway 04-22 was completed • Assessments were completed on several sanitary sewer main and drainage systems via CCTV • Electrical systems assessment completed in 2018 to be incorporated into the airport asset management system

Other projects included: • Airport paving was completed on Piper Road, Service Road, Astar Road and Bell Road in 2018 • A grant application to “Investing in Canada Infrastructure-Rural and Northern Communities Program” was submitted for the rehabilitation of the secondary runway, 08-26 • Phase 3 of the Airport Water Connector Main-Water Treatment Plant Upgrades was awarded, with completion scheduled for summer 2019

Northern Rockies Regional Municipality 2018 Annual Report

2019 Objectives Regional Council’s priorities for 2019 are primarily focused on laying the groundwork for a more diverse regional economy including growing forestry and tourism, ensuring residents have equitable access to health care services, building on relationships with other organizations and enhancing communication. The newly elected Council has determined that they will be revisiting the Strategic Plan starting in 2019, in order to ensure that initiatives continue to be aligned with community priorities. Council has committed to making the required investments in key infrastructure to sustain service levels during current economic conditions, and prepare a solid foundation for future growth. Regional Council’s priorities for 2019 continue to focus on the maintenance of existing service levels, while keeping property taxes within acceptable limits. Renewal of existing infrastructure that is being undertaken is being guided by an extensive Asset Management System (AMS) using specific criteria to prioritize each project. The following are identified as infrastructure objectives:

Water

Renewal and upgrading of the NRRM’s water assets. Asset management and master plans for the water system indicate needs for renewal of several treatment and distribution assets, and for treatment and storage capacity improvements to meet peak summer water demands and fire flows. The 2019 Annual Infrastructure Development Plan (AIDP) includes installation of a new Dissolved Air Flotation (DAF) train at the Water Treatment Plant and expansion of the Rural Water West reservoir and supply to achieve sufficient firefighting capacity.

Airport

Renewal and upgrading of the Northern Rockies Regional Airport (NRRA). The NRRA is a vital transportation link for the NRRM to support economic activity and quality of life in the NRRM now and in the future. Industry has been clear that the upgrading and future expansion of the NRRA is fundamental to future investment and development in the NRRM. Major investments will be required in the future for the expansion of the airport to accommodate both the needs of industry and the community as a whole. In the near term, aging assets that are critical to airport operations require renewal to sustain current service levels and ensure that the facility is ready to service future growth. In 2019, the NRRM intends to continue the process of renewing and upgrading aging and deficient infrastructure at the airport, including runways, building electrical and mechanical systems, and water and wastewater systems. The municipality is also exploring options for reducing operational costs.

Renewal and upgrading of the NRRM’s road system to maintain an acceptable level of service for existing and future users. The safety and convenience of the NRRM’s road system is essential for the functioning and growth of the community as a service centre. Engineering assessments carried out in the context of the NRRM’s original asset management Roads & planning process in 2014 indicated that an investment of $1.7 million per year is required to ensure that the paved road system Transportation continues to provide an acceptable level of service (including $200,000 for sidewalks, curb and gutter). A further $0.5 million is required annually to ensure that the rural road system also delivers an acceptable level of service. The Roads Asset Management Plan will be updated in 2019, and adjustments to the roads renewal program budgets are anticipated for 2020.

Northern Rockies Regional Municipality 2018 Annual Report

2019 Objectives Urban Stormwater Drainage

Upgrading and renewal of the Fort Nelson urban stormwater system. The NRRM completed stormwater master plans for the north and south sides of the Alaska Highway in 2015 and 2016, resulting in a prioritized capital program to mitigate risks to municipal infrastructure and private property. The 2019 AIDP includes funding for a program of rehabilitation (lining and replacement) and upsizing of aging corrugated steel culverts and drains that will address critical hydraulic deficiencies and structural failure risks. The NRRM is also conducting a climate vulnerability assessment of its stormwater system with funding from the Federation of Canadian Municipalities (FCM) and the Union of BC Municipalities (UBCM), which will be completed in 2019 and will inform updates to the stormwater renewal program for 2020.

Sanitary Sewer/ Wastewater

Ongoing renewal of the wastewater system. The Fort Nelson wastewater system requires ongoing sewer renewal to deliver existing levels of service. An ongoing sewer rehabilitation program has been established based on asset management planning and condition assessment to enable the NRRM to provide an acceptable level of service in the future. In 2019, the NRRM will complete desludging of the wastewater lagoons, renewal of the wastewater lagoonâ&#x20AC;&#x2122;s aeration system and renewal of lift station components.

Buildings & Facilities

Upgrading and renewal of municipal buildings. The NRRM completed a Facilities Master Plan in 2018 that provides a program of system renewals in existing buildings for the next ten years. This plan refines renewal priorities identified in the Buildings and Facilities Asset Management Plan (2015). Renewal work planned in 2019 includes improvements to communications and electrical systems of major NRRM facilities (including airport, park and recreation structures), assessing the foundation of the former Aquatic Centre, completing the cladding of the Public Works shop, and renewal of the valves at the Recreation complex. The NRRM will also complete an assessment of options to renew the Town Square complex. A separate $2 million is budgeted in 2019 to begin building a strategic reserve fund for renewal of the Town Square complex, which is approaching the end of its useful life and will require replacement or major renovation within the next ten years.

Solid Waste Facilities

Upgrading and renewal of solid waste facilities. An asset management plan is currently being completed for the solid waste facility. Budget is included in 2019 for the renewal of cell development and facility upgrades, and repairs as needed. In addition, the NRRM has completed a vermicomposting study which will include services to enable local diversion of organics, infrastructure to perform that service and changes to the transfer station in order to enable collection of organics and other segregated materials.

Northern Rockies Regional Municipality 2018 Annual Report

2019 Objectives Capital Budget FUNDED BY: Public Works Major Maintenance/Project: Alaska Highway Corridor Improvement Study

Carryover

Reserve

3,000

Operations

Grants

27,000 73,800

Drainage Master Plan-Climate Change Variability

500,000 527,000

Surface Drainage Improvements

3,000

73,800

Approved Budget 30,000 73,800 500,000 603,800

Capital Asset: Streetlight Renewal

81,500 81,500

Asset Renewal Roads Roads Renewal (Gravel) Roads Renewal (Asphalt, Sidewalk, Curb)

500,000 1,700,000 2,200,000

222,000 328,000 500,000 1,050,000

Asset Renewal Drainage Drainage Renewal Program-Reserve Contribution Stormwater Structural Rehabilitation Stormwater Concurrent Replacement Work

Mobile Equipment Replacement Fire 1 Command Vehicle Fire 2 Replacement Command Vehicle Fire Engine Tanker/Pumper 1 Replacement Wildland Interface Vehicle/Engine 3 Replacement

90,000 80,000 1,500,000 500,000 2,170,000

* Budget items that do not qualify for Infrastructure Development Contribution Agreement (IDCA) funding, but may qualify for other types of grant funding. Northern Rockies Regional Municipality 2018 Annual Report

2019 Objectives Capital Budget FUNDED BY: Water Utility Major Maintenance/Project: ICI Water Metering Water/Sewer Rate Regulation, Bylaw Update

Carryover

Reserve

Operations

Grants

97,650 15,400 113,050

Approved Budget 97,650 15,400 113,050

Capital Asset: Rural Water West Supply, Storage, Distribution Fediw Subdivision Watermain WTP Efficiency, Treatment & Capacity Improvements

3,134,400 620,900 216,000 3,971,300

565,000 1,707,200 800,000 1,365,000

1,707,200

3,699,400 2,328,100 1,016,000 7,043,500

Asset Renewal: 890,000 5,000 5,000 900,000

Water System Renewal-Reserve Contribution Asset Revewal-Water Treatment Plant Asset Renewal-Water Distribution

890,000 5,000 5,000 900,000

Sewer Utility Capital Asset: Sewer Outfall Replacement Wastewater Treatment Plant (WWTP) Headworks

1,591,400 50,000 1,641,400

Asset Renewal: WWTP Desludging Lift Station Renewal Program Sewer Rehabilitatation Program

71,100

1,500,000 10,000 300,000

1,500,000 10,000 371,100

Northern Rockies Regional Municipality 2018 Annual Report

2019 Objectives Capital Budget FUNDED BY: Sewer Utility Asset Renewal (continued):

Carryover

Reserve

Operations

WWTP Aeration System Renewal

71,100

1,810,000

Grants 2,818,560 2,818,560

Approved Budget 2,818,560 4,699,660

343,440 343,440

667,640 667,640

Solid Waste Capital Asset: Composting/Waste Diversion

324,200 324,200

Asset Renewal: Solid Waste Renewal-Reserve Contribution Landfill Renewal

170,000 100,000 270,000

50,000

79,780 44,990 58,880 183,650

Airport Major Maintenance/Project: Runway 08-26 Renewal Wastewater Servicing-Field Investigation Obstacle Surface Limitation (OLS) Clearing

29,780 44,990 58,880 133,650

50,000

Capital Asset: Airport Equipment-Grader Airport Perimeter Fence Airport Connector Main Runway 04-22

7,750 914,540 914,540

7,750

344,190 1,600,900 2,351,200 7,150,000 11,446,290

351,940 1,600,900 3,265,740 7,150,000 12,368,580

2019 Objectives Capital Budget FUNDED BY: Airport Asset Renewal: Infield Storm Drainage Sewer Lift Stn & Lagoon Improvements Airport Electrical System Assessment

Carryover 173,950 351,000 53,450

Airport Facility Renewal-Reserve Contribution

578.400

Reserve

Operations

Grants

50,000

Approved Budget 223,950 351,000 53,450 1,000,000 1,628,400

1,000,000 1.050.000

Recreation Major Maintenance/Project: Recreaction Centre Paydown

1,956,230 1,956,230

Asset Renewal: Recreation Facility Renewal-Reserve Contribution Recreation Complex Renewal-Valves Old Pool Bldg Foundation Assessment Parks & Recreation Structure Renewal Lighting Upgrade Ice Plant Chiller Replacement

380,850 100,000 30,000 280,000 144,150 1,250,000 2,185,000

40,850 250,000 290,850

380,850 100,000 30,000 280,000 185,000 1,500,000 2,475,850

General Government Major Maintenance/Project: Municipal Website Design

85,000 85,000

Northern Rockies Regional Municipality 2018 Annual Report

2019 Objectives Capital Budget FUNDED BY: General Government (continued) Asset Renewal: Building & Facility Renewal-Reserve Contribution Townhall Mun Admin Facility Renewal Options Facility Electrical & Communication Systems Assessmt Public Works/Fire Hall Renewal

Carryover

Reserve

Operations

Grants

Approved Budget

2,380,000 100,000 45,000 225,000 2,750,000

48,000 48,000

PROTECTIVE SERVICES Fire Major Maintenance/Project: PPE Self-Contained Breathing Apparatus (SCBA)

Emergency Management Operations (EMO) Major Maintenance/Project: EOC Capacity Building Project Reception Centre/Group Lodging Evacuation Route Planning

2,510 2,510

3,430 23,320 10,470 37,220

3,430 23,320 12,980 39,730

Animal Control Major Maintenance/Project: Wildsafe BC - Bear Aware

4,000 4,000

* Budget items that do not qualify for Infrastructure Development Contribution Agreement (IDCA) funding, but may qualify for other types of grant funding.

Northern Rockies Regional Municipality 2018 Annual Report

2019 Objectives Capital Budget FUNDED BY: REGIONAL DEVELOPMENT & PLANNING Planning Major Maintenance/Project: OCP Zoning Bylaw Extension Airport Land Use Plan Review

Carryover

Reserve

Operations

Grants

28,000 50,000 100,000

Wildfire Prevention Implementation

50,000

Bylaw Updates

78,000

Approved Budget

28,000 50,000 100,000 50,000 228,000

Regional Development Major Maintenance/Project: 15,000 15,000

Boreal Caribou Restoration Review Economic Forecasting: EDISON Regional Economic Strategy-Phase I Regional Economic Strategy-Phase II Forest Industry Rejuvenation Initiative Fort Nelson Community Forest Aspen Market Analysis Phase II Regional Connectivity Strategy NR Business Facade Improvement Program 9-1-1 Mobile Services Love Fort Nelson Marketing

17,500 12,000 60,200 39,800

10,000 5,000

3,070, 132,570

4,400

54,480 108,890

153,960 15,000 20,000

47,000 96,400

1,200 353,530

15,000 15,000 54,480 130,790 12,000 70,200 193,760 20,000 20,000 50,070 1,200 582,500

Northern Rockies Regional Municipality 2018 Annual Report

2019 Objectives Capital Budget FUNDED BY: REGIONAL DEVELOPMENT & PLANNING Tourism Major Maintenance/Project: Tourism Strategic Plan Implementation

Carryover

Reserve

1,500 78,100 32,100 15,000 12,500 124,200

Visitor Centre Operations Northern Rockies Hiking Guide

17,900 15,000

NEBC Tourism Marketing Consortium

59,960

Recreation Centre Paydown Major Maintenance/Projects Capital Assets Total

Grants

27,060

Annual Tradeshow Attendance Public Washroom Partnership Program

Operations

6,000

1,956,230

Approved Budget

27,060 7,500 78,100 50,000 30,000 12,500 190,160 1,956,230

747,630

8,799,110

611,400

10,158,140

7,355,040

2,177,750

5,768,000

16,565,490

31,866,280

10,058,900

2,177,750

14,567,110

17,176,890

43,980,650

* Budget items that do not qualify for Infrastructure Development Contribution Agreement (IDCA) funding, but may qualify for other types of grant funding.

Northern Rockies Regional Municipality 2018 Annual Report

North Central Local Government Assn. Annual General Meeting hosted in Fort Nelson May 2018

NCLGA Delegates on a tour of the Fort Nelson First Nation

Northern Rockies Regional Municipality 2018 Annual Report

Consolidated Financial Statements For the Year Ended December 31, 2018

For the Year Ended December 31, 2018

Table of Contents Management Responsibility

Independent Audit Report

Consolidated Statement of Financial Position

Consolidated Statement of Operations

Consolidated Statement of Changes in Net Financial Liabilities

Consolidated Statement of Cash Flows

Significant Accounting Policies

Notes to Consolidated Financial Statements

NORTHERN ROCKIES REGIONAL MUNICIPALITY 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 accordance with Canadian public sector accounting standards for local governments as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants Canada. A summary of the significant accounting policies are described within the financial statements. The preparation of financial statements necessarily involves the use of estimates based on management's judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. The Regional Municipality's management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the 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 and discuss any significant financial reporting or internal control matters prior to their approval of the financial statements. The financial statements have been audited by Sander Rose Bone Grindle LLP, independent auditors of the Regional Municipality. The accompanying Independent Auditors' Report outlines their responsibilities, the scope of their examination and their opinion on the Regional Municipality's financial statements.

Chief Administrative Officer

Director of Finance

INDEPENDENT AUDITOR’S REPORT

To the Mayor and Council of Northern Rockies Regional Municipality Opinion We have audited the financial statements of Northern Rockies Regional Municipality, which comprise the statement of financial position as at December 31, 2018, the statement of operations, the statement of cash flows and changes in net financial assets for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Northern Rockies Regional Municipality as at December 31, 2018, and the result of its operations and its cash flows for the year then ended in accordance with the Canadian accounting standards for Public Sector. Basis for Opinion We conduct our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Municipality in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for Public Sector and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Municipality’s ability to continue as a going concern, disclosing, as applicable, matter relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the Municipality or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Municipality’s financial reporting process. (continues)

Independent Auditor’s Report to the Mayor and Council of Northern Rockies Regional Municipality (continued) Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue and auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: ·

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Municipality’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Municipality’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, further events or conditions may cause the Municipality to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statement represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Fort St. John, BC April 23, 2019

Chartered Professional Accountants

NORTHERN ROCKIES REGIONAL MUNICIPALITY Consolidated Statement of Financial Position December 31, 2018 2018 Financial Assets Cash and cash equivalents

2017

$ 29,452,701

$ 25,730,047

192,486

191,049

Accounts receivable (Note 1)

4,294,295

3,358,021

Land for sale

4,489,001

4,570,470

20,566

23,951

38,449,049

33,873,538

1,956,230

4,424,200

Accounts payable and accrued liabilities (Note 5)

7,416,558

5,751,231

Due to Northern Rockies Regional Hospital District

1,730,252

1,695,410

225,587

17,665

28,341,138

29,421,825

(39,669,765)

(41,310,331)

(1,220,716)

(7,436,793)

Short term investments

Tax sale properties (Note 2)

Liabilities Short term borrowing (Note 4)

Deferred Revenue Debenture debt (Note 6)

Net Debt Non‐Financial Assets Tangible capital assets (Note 8)

206,052,376

201,041,651

69,722

353,909

128,778

206,250,876

201,524,338

$ 205,030,160

$ 194,087,545

Prepaid expenses Inventory

Accumulated Surplus(Note 7) Approved by: ______________________________________ Toni Pike, Director of Finance

See accompanying notes to consolidated financial statements

NORTHERN ROCKIES REGIONAL MUNICIPALITY Consolidated Statement of Operations For the Year Ended December 31, 2018 Budget (Unaudited) Revenue Taxation

$ 23,395,390

Collected for other governments

$ 35,468,117

2017 $ 37,515,089

(11,905,030)

(12,751,990)

23,395,390 26,051,177

23,563,087 11,819,729

24,763,099 13,589,431

4,056,140

4,240,096

4,180,341

216,000

31,318

2,349

Actuarial adjustments

‐

258,983

229,743

Gain/loss on disposal of TCA

‐

Taxation, net Government transfers Fees and charges Land sales

Total revenue

‐

2018

(7,255)

(940)

53,718,707

39,905,958

42,764,023

Expenses General government

3,521,000

3,030,408

3,043,498

Protective services

2,232,200

2,091,912

2,103,074

Utilities

7,127,940

3,399,938

4,381,856

Community development

2,356,110

1,528,659

1,413,911

Recreation & culture

7,555,640

9,166,888

8,895,390

Transportation services

4,475,660

5,739,310

6,901,790

Solid waste management

1,429,470

1,183,742

1,512,283

52,440

39,287

42,142

2,500,960

2,781,209

2,354,643

‐

1,990

31,251,420

28,963,343

30,650,577

22,467,287

10,942,615

12,113,446

‐

194,087,545

181,974,099

$ 22,467,287

$ 205,030,160

$ 194,087,545

Cemetery Airport Land development Total expenses Annual surplus/(deficit) Accumulated surplus, beginning of year Accumulated surplus, end of year

See accompanying notes to consolidated financial statements

NORTHERN ROCKIES REGIONAL MUNICIPALITY Consolidated Statement of Changes in Net Financial Liabilities For the Year Ended December 31, 2018 Budget (Unaudited) Excess Revenue Over Expense

2018

24,045,697

2017

10,942,615

$ 12,113,446

TCA ‐ capitalized in year

‐

(11,676,119)

(13,326,545)

Amortization of tangible capital assets

‐

6,597,446

6,642,210

Proceeds from disposal of tangible capital assets

‐

60,693

‐

Gain/loss on disposal of TCA

‐

7,255

940

Transfer of land for resale

‐

789,084

Change in prepaid expenses

‐

284,187

Decrease (increase) in Net Financial Liabilities

24,045,697

Net financial liabilities, beginning of year Net Financial Liabilities, end of year

‐ $

24,045,697

See accompanying notes to consolidated financial statements

(6,110)

6,216,077

6,213,025

(7,436,793)

(13,649,818)

(1,220,716)

(7,436,793)

NORTHERN ROCKIES REGIONAL MUNICIPALITY Consolidated Statement of Cash Flows For the Year Ended December 31, 2018 Operating Activities Excess revenue over expenses

2018 $

Amortization of tangible capital assets

10,942,615

$ 12,113,446

6,597,446

6,642,210

7,255

940

(Gain)/loss on disposal of tangible capital assets Decrease (increase) in receivables

(936,274)

105,882

81,469

(720,934)

284,187

(6,110)

3,385

(10,021)

(2,467,970)

(17,575,800)

Decrease (increase) in property held for resale Decrease (increase) in prepaid expenses Decrease (increase) in tax sale properties Increase (decrease) in short term borrowing Increase (decrease) in accounts payable and accrued liabilities Increase (decrease) in deferred revenue

Investing Activities Acquisition of tangible capital assets

1,665,327

(540,797)

207,922

(3,445)

16,385,362

5,371

(11,676,119)

(13,326,545)

60,693

‐

789,084

(11,615,426)

(12,537,461)

(1,080,687)

(736,159)

Proceeds from disposal of tangible capital assets Transfer of land for resale

Financing Activities Repayment of long term debt Due to Northern Rockies Regional Hospital District

34,842

122,367

‐

15,000,000

(1,045,845)

14,386,208

3,724,091 25,921,096

1,854,118 24,066,978

29,645,187

$ 25,921,096

29,452,701

$ 25,730,047

192,486

191,049

29,645,187

$ 25,921,096

Financing of long term debt

Net cash increase (decreases) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

2017

Cash and cash equivalents consist of the following: Cash and cash equivalents Short term investments $

See accompanying notes to consolidated financial statements

NORTHERN ROCKIES REGIONAL MUNICIPALITY Significant Accounting Policies For the Year Ended December 31, 2018 The Northern Rockies Regional Municipality was incorporated in the Province of British Columbia on February 6, 2009 and its principal activities include the provision of legislative; administrative; protective; utility; planning and development; recreation and culture; and transportation services to its residents. The Northern Rockies Regional Municipality is a continuation of the Town of Fort Nelson and Northern Rockies Regional District, which were amalgamated on February 6, 2009. The consolidated financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles for governments as recommended by the Public Sector Accounting Board ("PSAB") of the Chartered Professional Accountants Canada. 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 Venture in the development of light industrial lands. In accordance with PS 3060, Government Partnership, of the Public Sector Accounting Board handbook, the regional municipality is required to account for the Joint Venture using proportionate consolidation. Accordingly, the consolidated financial statements include 50% of the accounts of the joint venture. The Cemetery Trust, Employee Trust, NEBC Tourism Marketing Trust and Invasive Plant Trust Funds are administered by the regional municipality and are specifically excluded from the consolidated financial statements and are reported separately (Note 10). Basis of accounting The regional municipality follows the accrual method of accounting for revenues and expenses. Prior year's amounts have been restated to conform with the current year's presentation. Land Held for Resale Land held for resale is comprised of municipal land that is either actively listed for sale or has a sale contract in place. Regional Council is responsible for determining the property that will be made available for sale and for negotiating the terms of the disposition. When a property is deemed "Available for Sale", it is removed from the Tangible Capital Assets of the Regional Municipality and is reclassified as Land Held for Resale. Inventory Inventory consists of residential curbside collection carts distributed to residences. Inventory is recorded at cost. 8

NORTHERN ROCKIES REGIONAL MUNICIPALITY Significant Accounting Policies For the Year Ended December 31, 2018 Expenses Expenses are recorded in the period in which the goods or services are acquired and a liability is incurred. Revenue Recognition Fees and charges revenue Charges for permits, licences, leases, user fees (recreation, solid waste, water, waste water and airport) are included in this category. These revenues are recorded on the accrual basis and recognized when earned. Government transfers Government transfers are recognized as revenue in the period that the transfer is authorized, eligibility criteria, if any, have been met by the regional municipality, and a reasonable estimate of the amount to be received can be made. Taxation revenue Annual levies for non‐optional municipal services and general administration services are recorded as taxes for municipal purposes. Levies imposed by other taxing authorities are not included as taxes for municipal 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 of supplementary roll adjustments. The effects of these adjustments on taxes are recognized at the time they are awarded. Use of Estimates Management has made estimates and assumptions that affect the amount reported in preparing these financial statements. Significant areas requiring the use of management estimates relate to the determination 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 and excluding amortization, was included in the Northern Rockies Regional Municipality Consolidated Five Year Plan and was adopted through Bylaw No. 147,2018 on April 26, 2018.

NORTHERN ROCKIES REGIONAL MUNICIPALITY Significant Accounting Policies For the Year Ended December 31, 2018 Financial Instruments The regional municipality's financial instruments consist of short term investments, accounts receivable, short term borrowing, accounts payable and accrued liabilities, amounts due to Northern Rockies Regional Hospital District, debenture debt and capital lease obligations. Unless otherwise noted, 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 financial instruments approximate their carrying value, unless otherwise noted. Reserve Funds Under the Community Charter of British Columbia, Regional Council may, by bylaw, establish reserve funds for specified purposes. Money in a reserve fund and interest earned thereon must be expended only for the purpose for which the fund was established. If the amount in a reserve fund is greater than required for the purposes for which the fund was established, Regional Council may transfer all or part of the amount to another reserve fund. Statutory Reserve Funds Under the Community Charter of British Columbia, Regional Council must esablish funds for monies received from specific sources. 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 valued at cost. The purchase and development of land for residential subdivisions is held in work in progress while road and utility services are being constructed.

NORTHERN ROCKIES REGIONAL MUNICIPALITY Significant Accounting Policies For the Year Ended December 31, 2018 Tangible Capital Assets The regional municipality records physical assets including assets held under capital lease, at cost in the 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. The useful life is applied on a straight line basis to calculate amortization. A full year of amortization is claimed in the year of acquisition, providing the asset is in use, and no amortization is claimed in the year of disposal. Useful Life Land 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

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 The notes to the consolidated financial statements are an intergral part of the statements. They explain the reporting policies and principles underlying these statements. They also provide relevant supplementary information 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: 2018 Trade accounts and other

Property taxes receivable

575,813 1,484,336

424,111

1,297,872

$ 4,294,295

$ 3,358,021

Tax Sale Properties Property acquired for taxes subject to redemption are as follows: Opening balance

2018 $

Additions

2017

23,951

20,566

Redemptions Disposals at cost $ 3.

515,206 3,354,978

Due from senior governments

2017

13,930 13,650

(23,951)

‐

(3,629)

20,566

23,951

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 (2017: $ NIL) at December 31st. This facility bears interest at prime rate per annum.

Short Term Borrowing The regional municipality obtained short term borrowing issued through the Municipal Finance Authority at a daily floating rate which ranged between 1.94% and 2.80% during 2018.

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 5.

Accounts payable and accrued expenses Accounts payable consist of the following: 2018 Wages and accrued benefits

$ 1,157,341

$ 1,247,563

170,630

106,503

4,153,198

2,643,288

133,189

74,290

1,367,729

1,226,654

Accrued interest on LTD

164,070

184,290

Refundable deposits

246,477

253,477

1,350

22,574

13,816

$ 7,416,558

$ 5,751,231

Payable to trust accounts Trade accounts payable AP ‐ Other Governments Landfill closure/post‐closure liability

Subdivision development Tax Sale Deposits

2017

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 finance certain capital expenditures. Sinking fund balances, managed by the MFA, are used to reduce long term debt. Interest rates on long term debt range from 2.8 % to 5.15%. The average interest rate was 4.04% (2017 ‐ 4.44%). Gross amount of debt and the amount of the sinking fund assets available to retire the debt are as follows: Sinking Fund 2018 2017 Gross Debt Net Debt Net Debt Assets General capital fund

23,000,000

2,027,849

$ 20,972,150

$21,490,462

Water utility capital fund

11,062,661

4,312,742

6,749,920

7,205,302

Sewer utility capital fund

1,841,416

1,222,348

619,068

726,061

35,904,077

7,562,939

$ 28,341,138

$29,421,825

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 6.

Long‐term debt Current period and future aggregate payments of net outstanding debenture debt over the next five years are as follows: 2019

821,704

2020

766,358

2021

766,358

2022

766,358

2023

766,358

Scheduled debt repayments may be suspended in the event of excess sinking fund within the MFA. Principal paid during the year was $821,704 (2017 ‐ $506,415). Interest paid during the year was $1,122,845 (2017 ‐ $1,064,775). Municipal Finance Authority Debt Reserve Fund The Municipal Finance Authority of British Columbia provides capital financing for municipalities. The Authority is required to establish a Debt Reserve Fund. The regional municipality is required to pay into the Debt Reserve Fund certain amounts set out in the debt agreements. The Authority pays into the Debt Reserve Fund these monies from which interest earned thereon less administrative expenses becomes an obligation to the regional municipality. It must then use this fund if at any time there are insufficient funds to meet payments on its obligations. When this occurs the regional municipality may be called upon to restore the fund. Upon maturity of a debt issue, the unused portion of the Debt Reserve Fund established for that issue will be discharged to the regional municipality. The proceeds from these discharges will be credited to income in the year they are received. As at December 31, 2018 the total of the regional municipality's MFA Debt Reserve Fund is comprised of: 2018 2017 Cash deposits Demand notes

453,721

444,059

751,660

$ 1,205,381

$ 1,195,719

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 7.

Accumulated Surplus Accumulated surplus consists of individual fund surplus and reserves and reserve funds as follows: 2018 2017 Surplus Investment in tangible capital assets General Water utility Sewer utility Joint venture Reserves and Reserve Funds Council gift reserve Punch bowl reserve Solid waste future expense reserve Airport working fund reserve Airport future expense reserve Airport equipment future expense reserve Museum working fund reserve Museum future expense reserve Golf course future expense reserve Library working fund reserve Library future expense reserve Library equipment future expense reserve Theatre working fund reserve Theatre future expense reserve Sidewalk reserve Reserve for Roads Town square improvement reserve Infrastructure reserve Parkland/development charges reserve Reserve for Building 292 Water reserve Rural water west reserve Future subdivision development Water utility future expense reserve Sewer utility reserve Financial Stabilization Reserve Fund Road Reserve Fund Facility Reserve Fund Drainage Reserve Fund Sewer Reserve Fund Water Reserve Fund Airport Reserve Fund Solid Waste Reserve Fund Vehicle & Equipment Reserve Fund

168,789,224 14,132,159 2,135,847 1,548,781 667,767 187,273,778 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 152,255 2,864,487 4,462,651 1,144,369 361,283 1,452,106 1,694,011 1,543,285 3,863,316 17,537,763

160,229,837 15,648,815 2,019,547 1,432,483 669,757 180,000,439 3,144 1,439 1,215,000 100,000 747,515 814,868 10,000 1,243,260 109,589 273 410 14,500 63,170 61,040 3,307 2,286,613 4,733 1,934,000 32,755 1,337,196 38,691 112,143 2,349 416,190 56,630 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10,608,815 15

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 7.

Accumulated Surplus

2018

Statutory Reserve Funds Feasibility Study Reserve Fund Tax Sale Properties Reserve Fund Capital Works, Machinery & Equipment Reserve Fund Machinery & Equipment Depreciation Reserve Fund Sewerage System Reserve Fund Water Utility Reserve Fund Parkland Acquisition Reserve Fund Land Sale Reserve Fund $

‐ ‐ ‐ ‐ ‐ ‐ 33,378 185,241 218,619 205,030,160

2017

92,012 52,818 243,673 2,918,109 119,529 52,150 ‐ ‐ 3,478,291 194,087,545

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 8. Tangible Capital Assets

Land Improvement

Land Cost Balance, beginning of year

$ 5,468,880

Add: additions during year

Machinery & Equipment

Vehicles

2,486,051

$ 106,619,908

$ 4,589,772

$ 14,020,343

‐

82,635

‐

93,884

Less: disposals during year

‐

(351,826)

Less: transfers to land for resale

‐

5,468,880

2,486,051

106,702,543

4,589,772

13,762,401

Balance, beginning of year

‐

789,351

18,109,658

3,499,845

7,864,075

Add: amortization

‐

122,412

2,089,512

176,070

644,433

Less: accumulated amortization on disposals

‐

Balance, end of year

‐

911,763

20,199,170

3,675,915

$ 86,503,373

913,857

5,540,258

‐

Balance, end of year

Buildings

Accumulated amortization

Net book value of tangible capital assets

$ 5,468,880

1,574,288

Work in progress

65,767

973,452

195,916

‐

(286,365) 8,222,143

Water Infrastructure

Sewer Infrastructure

Roads Infrastructure

Airport Infrastructure

$ 42,853,299

$ 23,343,409

$ 55,013,471

$ 28,111,856

$ 282,506,989

$ 269,489,419

‐

2,761,079

‐

2,937,598

13,955,566

‐

(117,768)

(319,931)

(789,525)

(148,912)

‐

(789,084)

42,853,299

23,343,409

57,656,782

27,791,925

284,655,062

282,506,989

15,082,209

9,775,476

24,199,057

15,143,410

94,463,081

87,968,843

673,276

540,245

1,600,001

751,497

6,597,446

6,642,210

‐

15,755,485

10,315,721

25,683,776

15,574,976

100,338,949

94,463,081

$ 27,097,814

$ 13,027,688

$ 31,973,006

$ 12,216,949

$ 184,316,113

$ 188,043,908

$ 11,759,256

$ 21,736,263

$ 12,997,741

4,698,788

(115,282)

4,035,139

(319,931)

7,945

2018

2017

(721,578)

(147,972)

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 9.

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, is responsible 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 a formula. As at December 31, 2017, the Plan has about 197,000 active members and approximately 95,000 retired members. Active members include approximately 39,000 contributors from local government. Every three years, an actuarial valuation is performed to assess the financial position of the plan and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution 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 contributions sufficient to provide benefits for average future entrants to the plan. This rate may be adjusted for the amortization of any actuarial funding surplus and will be adjusted for the amortization of any unfunded actuarial liability. The most recent actuarial valuation for the Municipal Pension Plan as at December 31, 2015 indicated a $2,224 million funding surplus for basic pension benefits on a going concern basis. As a result of the 2015 basic account actuarial valuation surplus and pursuant to the joint trusteee agreement, $1,927 million was transferred to the rate stabilization account and $297 million of the surplus ensured the required contribution rates remained unchanged. The regional municipality paid $705,289 for employer contributions to the Plan in fiscal 2018. The next valuation will be as at December 31, 2018 with results available in 2019. Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the plan records accrued liabilities and accrued assets for the Plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to the individual employers participating in the Plan. Legal Liabilities The regional municipality is potentially exposed to lawsuits arising from the ordinary course of operations. Although the outcome of such matters cannot be predicted with certainty, management does not consider the Regional Municipality's expose to be material to these financial statements.

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 9.

Commitments and Contingencies Landfill Closure and Post‐Closure Costs Included in payables is $1,367,729(2017 ‐ $1,226,654). These amounts represent management's total estimated liability for landfill closure and post‐closure care. The estimated liability for these costs is recognized as the landfill site's capacity is used. Estimated total expenses represents the sum of the discounted future cash flows for closure and post‐closure care activities discounted at an annual estimated borrowing cost of 3.36%. Landfill closure and post‐closure care requirements have been defined in accordance with the Ministry of Environment's Landfill Criteria for Municipal Solid Waste and included final covering and landscaping of the landfill, monitoring groundwater, surface water and landfill gas and erosion settlement for a period of 25 years. The reported liability is based on estimates and assumptions with respect to events extending over the remaining life of the landfill. The remaining capacity of the landfill site is estimated at 156,650 cubic metres, which is 32% of the site's total capacity. The landfill site is expected to reach capacity in 2033.

10.

Trust Funds In accordance with PSAB recommendations for local governments, trust funds are not included in the regional municipality's consolidated financial statements. The regional municipality administers a Cemetery Maintenance Fund for the perpetual care and maintenance of the Regional Municipaly owned and operated cemeteries. As at December 31, 2018 the Cemetery Trust Fund balance is $24,663 (2017 ‐ $23,793). The regional municipality administers an Employee Trust Fund on behalf of its employees. As at December 31, 2018 the Employee Trust Fund balance is $10,669 (2017 ‐ $8,581). The regional municipality administers an Invasive Plant Trust Fund on behalf of the community. As at December 31, 2018 the Invasive Plant Trust Fund balance is $62,720 (2017 ‐ $74,128). The regional municipality administers an NEBC Tourism Marketing Trust Fund on behalf of the community. As at December 31, 2018 the NEBC Tourism Marketing Trust Fund balance is $72,578 (2017 ‐ $NIL).

NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 11.

Segmented Disclosure The Northern Rockies Regional Municipality provides various services within various divisions. The segmented information as disclosed in this section reflects those functions offered by the regional municipality as summarized below: General government ‐ activities related to the administration of the regional municipality as a whole including central administration, finance, human resources, common services and legislative operations. Protective services ‐ activities related to providing for the security of the property and citizens of the regional municipality including, policing, fire protection, emergency planning, building inspection, animal control and bylaw enforcement. The population of the regional municipality was reported above 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 to gathering, treating, transporting, storing and discharging sewage or reclaimed water. Water utility activities are related to supplying, storing, treating and transporting water. Community development services ‐ activities related to community planning, economic devlopment and tourism. Recreation and cultural services ‐ activities related to recreational and cultural services including parks and 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 Joint Venture and specifically the amount consolidated in these financial statements.

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NORTHERN ROCKIES REGIONAL MUNICIPALITY Notes to Consolidated Financial Statements For the Year Ended December 31, 2018 11.

Segmented Disclosure

General

Protective

Government

Services

Community Recreation & Transportation Development

Utilities

Culture

Services

Solid Waste

Joint

Management Cemetery

Venture

Airport

2018

2017

Revenue Taxation Government transfers

$ 22,647,102 $

‐ $ 915,985 $

‐ $

‐ $ 23,563,087 $ 24,763,099

10,816,635

23,258

‐

306,306

85,118

‐

588,412

‐

11,819,729

13,589,431

677,920

96,465

1,603,806

47,767

802,226

24,945

460,948

5,750

520,269

‐

4,240,096

4,180,341

31,318

‐

31,318

2,349

‐

198,601

‐

60,382

‐

258,983

229,743

(7,255)

‐

(7,255)

(940)

34,165,720

119,723

2,718,392

354,073

947,726

24,945

460,948

5,750

1,108,681

‐

39,905,958

42,764,023

Wages and benefits

1,917,486

1,391,495

864,062

775,392

3,529,728

905,440

56,142

34,636

630,057

‐

10,104,438

10,097,996

Contracted services

738,466

399,828

374,444

691,006

821,662

2,346,449

1,085,909

778,500

1,990

7,238,282

8,666,781

Materials and supplies

162,818

193,439

160,848

62,261

569,364

460,512

13,066

691

254,312

‐

1,877,311

1,714,450

88,167

17,219

240,582

‐

539,409

167,809

5,670

‐

94,608

‐

1,153,464

1,150,684

‐

692,274

‐

692,274

688,909

Amortization

23,471

89,931

1,469,157

‐

2,105,168

1,859,100

22,955

3,932

1,023,732

‐

6,597,446

6,642,210

Debt charges

‐

290,845

‐

909,283

‐

1,200,128

1,589,547

100,000

‐

100,000

3,030,408

2,091,912

3,399,938

1,528,659

9,166,888

5,739,310

1,183,742

39,287

2,781,209

1,990

28,963,343

30,650,577

Fees and charges Land sales Actuarial Adjustments Gain/loss on disposal of TCA Total revenue Expenses

Utilities Transfers

Bad debts Total expense Annual surplus (deficit)

$ 31,135,312 $ (1,972,189) $ (681,546) $ (1,174,586) $(8,219,162) $

Northern Rockies Regional Municipality 2018 Annual Report

(5,714,365) $

(722,794) $ (33,537) $(1,672,528) $ (1,990) $ 10,942,615 $ 12,113,446

The Cost of Municipal Services Based on the 2018 budget, the chart shows the monthly cost of municipal services for an in-town residential property with an assessed value of $164,000, compared to some other common monthly expenses.

Northern Rockies Regional Municipality 2018 Annual Report

NRRM 2018 Permissive Property Tax Exemptions Through the adoption of an annual bylaw, Council provides a permissive exemption from Municipal taxation to certain groups and organizations, which are evaluated and chosen at the discretion of Council. The legal capacity to provide these permissive tax exemptions is through powers granted to Council in the Community Charter. The Community Charter legislation took effect on January 1, 2004 and as a requirement of this legislation the Municipality must include a listing of each permissive tax exemption granted under the annual bylaw, and the amount of taxes that would have been imposed on the property if it were not exempt for that year in its Annual Report. Another provision of the Community Charter requires the Municipality to advertise the proposed permissive tax exemption bylaw prior to its adoption. These changes incorporated into the Community Charter provide improved transparency into the Municipalityâ&#x20AC;&#x2122;s dealings and allow for the public to provide input. The purpose of granting permissive tax exemptions is to support organizations providing services considered to be an extension of Municipal services and programs that are deemed to contribute to the well-being of the community. With the exception of churches and schools, in order for an organization to be considered for a permissive tax exemption they must submit an application requesting an exemption. They must operate on a not-for-profit basis, they must be in good standing with the Registrar of Companies, and they must be apolitical and non-restrictive in their membership, executive and event participation. Permissive tax exemptions for churches and schools are handled differently. Churches and schools are granted a statutory exemption under the Community Charter, which provides for a general exemption from taxation over which Council does not have any legislative powers or authority. The exemptions granted under this legislation provide tax exemption for the main building and the land on which the building stands, leaving the remainder of the property as taxable. All permissive tax exemptions can be provided for the land or improvements of the property, or any combination thereof, in whole or in part. Partial exemptions are usually granted if only a portion of the property is used in conjunction with the criteria listed above. To coincide with the statutory powers granted through the legislation of the , Council has adopted guidelines pertaining to permissive tax exemptions as a whole and a set of more specific policies regarding what types of organizations will and will not be considered for permissive tax exemptions. The permissive tax exemptions granted for the 2018 taxation year are exempted under Northern Rockies Regional Municipality 2018 Permissive Tax Exemption Bylaw No.142, 2017 in accordance with section 224 of the Community Charter.

Northern Rockies Regional Municipality 2018 Annual Report

NRRM 2018 Permissive Property Tax Exemptions Roll Number 000109.500 000110.520 000110.535 000111.000 000145.510 000530.000 000550.005 000574.125 000599.000 000643.000 000702.100 000720.000 000796.100 000868.000 000879.000 000880.000 001063.000 001085.471 005500.500 005500.640 005500.650 005500.660 005500.670 005500.690 005514.126 005519.225 040795.045 041806.100 041876.015

Organization Fort Nelson Rod & Gun Club Historical Society Museum Historical Society Museum Catholic Episcopal Corporation of Whitehorse Northern Lamplighters Activity Centre Association Fort Nelson Family Development Society FN Aboriginal Friendship Society Pentecostal Assemblies of Canada Fort Nelson Temple Building Society Elks Lodge Society Christian & Missionary Alliance Canadian Pacific District FN Aboriginal Friendship Society United Church of Canada Northern Rockies Aboriginal Women Society Northern Rockies Aboriginal Women Society Northern Rockies Aboriginal Women Society Congregation of the Jehovah Witnesses of Fort Nelson Bhav Khandan Darbar Guru Sikh Society Fort Nelson Senior Citizen's Housing Complex Phoenix Theatre Mgmt Society, occupier within the Town Square Fort Nelson Public Library, occupier within the Town Square Northern Health Authority, occupier within the Town Square FN Playschool Society, occupier within the Town Square FN Chamber of Commerce, occupier with the Recreation Centre Northern Rockies Seniors Society FN Aboriginal Friendship Society Scouts Properties (BC/Yukon) Ltd Fort Nelson Snowmobile Club Catholic Episcopal Corporation of Whitehorse

Taxable Buildings

Taxable Land $

268,000 25,100 34,400 43,100 375,000 105,000 76,300 67,400 65,500 113,000 69,500 63,900 70,000 72,100 60,200 60,200 152,200 38,700 247,000 66,500 40,600 11,000 14,700 3,600 122,000 57,600 15,600 45,900 58,100

70,500 70,400 296,000 47,500 185,200 151,000 259,000 81,400 31,600 129,000 194,800 51,500 82,600 60,600 68,000 495,000 523,000 266,000 59,200 114,000 53,900 558,000 63,800 2,800 13,400 59,000

Non-exempt Frontage Taxes

Value of Permissive Tax Exemption

1,657 484 394 1,625 538 805 726 404 810 404 269 269 807 553 538 -

2,837 2,017 6,423 456 3,175 5,406 7,080 748 488 1,217 1,329 1,349 611 3,267 1,427 1,271 1,070 2,253 6,926 12,448 6,474 1,482 2,718 1,214 6,347 1,133 132 447 716

Northern Rockies Regional Municipality 2018 Annual Report

NRRM Contacts The Northern Rockies Regional Municipality offers many civic services to the community. Additional services to the community are provided through the Northern Rockies Regional Recreation Centre and publicly supported institutions such as the Fort Nelson Public Library, Phoenix Theatre and the Fort Nelson Heritage Museum.

Northern Rockies Municipal Hall 5319—50 Avenue South Fort Nelson, BC V0C 1R0 250-774-2541 justask@northernrockies.ca

/Northern-Rockies-Regional-Municipality

Northern Rockies Regional Recreation Centre 5500 Alaska Highway Fort Nelson, BC V0C 1R0 250-774-2541 rec@northernrockies.ca

/Northern-Rockies-Regional-Recreation

Tourism Northern Rockies Discover the Northern Rockies www.tourismnorthernrockies.ca Fort Nelson Visitor Information Centre Tourism Northern Rockies https://www.instagram.com/ tourismnorthernrockies/

Phoenix Theatre

5319—50 Avenue South Fort Nelson, BC V0C 1R0 250-774-2241 www.phoenixtheatre.ca/ /fortnelsonshow/

Northern Rockies Regional Municipality 2018 Annual Report

Fort Nelson Public Library

5319—50 Avenue South Fort Nelson, BC V0C 1R0 250-774-6700 fnpl@fortnelson.bclibrary.ca http://fortnelson.bc.libraries.coop/

Northern Rockies Regional Airport (YYE) 30 Piper Road Fort Nelson, BC V0C 1R0 250-774-6454 airport@northernrockies.ca www.flynorthernrockies.ca

Fort Nelson Heritage Museum PO Box 17, Alaska Highway Fort Nelson, BC V0C 1R0 250-774-3536 info@fortnelsonmuseum.ca www.fortnelsonmuseum.ca

/Fort-Nelson-Public-Library

Poplar Hills Golf and Country Club

Radar Road, Mile 304 Old Alaska Highway Fort Nelson, BC V0C 1R0 250-774-3862 www.poplarhillsgolf.com/

Northern Rockies Regional Municipality 5319 - 50 Avenue South, Bag Service 399 Fort Nelson, BC V0C 1R0 Website: www.NorthernRockies.ca Email: JustAsk@NorthernRockies.ca

This report is available online and is printed in a limited quantity to conserve resources. Northern Rockies Regional Municipality 2018 Annual Report