District of Elkford 2020 Annual Report

ANNUAL REPORT 2020

Get intimate with nature.

Welcome to the Wilderness Capital of B.C.

2020 Annual Report: Page 1

www.elkford.ca

2020 Annual Report: Page 2

TABLE OF CONTENTS Elkford: At a Glance

Page 4

Organizational Introduction

Page 6

Message from Mayor McKerracher

Page 10

Message from CAO, Tyler Madsen

Page 12

Our Vision and Values

Page 14

Official Community Plan

Page 15

Strategic Directions: Progress Reports

Page 16

2020-22 Strategic Priorities

Page 30

2020 Departmental Highlights and Reports

Page 34

Financial Statements

Page 54

PHOTOS (cover and inside cover): Tasha Chorneyko 2020 Annual Report: Page 3

ELKFORD, BRITISH COLUMBIA

AT A GLANCE

PHOTO: “Wapiti and Grizzly Peak” by Tasha Chorneyko

GET INTIMATE WITH NATURE You’ll find Elkford at 1,300 metres above sea-level, marking the spot where Highway 43 ends and the wilderness begins.

A hidden gem of the East Kootenay, this high-altitude Rocky Mountain municipality calls to the adventurous in spirit. Without a traffic light or big-box store in sight, Elkford’s rugged mountain ranges, iconic Canadian wildlife and untamed wilderness are truly an outdoor enthusiast’s dream come true.

Elkford welcomes 10 to 16 feet of snowpack annually, making it superb locale for powderhounds to sniff out fresh snow. A nearby neighbour of the cities of Fernie, Cranbrook and Kimberley, Elkford boasts legendary sledding, boarding and downhill and cross-country skiing conditions, minus the crowds.

Whether you’re looking for your next great adventure, or a picture-perfect place to raise a family, you’ll find it in Elkford, the Wilderness Capital of B.C.

Wilderness has always been at the core of Elkford’s identity. Built in 1971, as a homestead for mining industry workers and their families, Elkford has grown to boast the amenities, recreation facilities and luxuries of a much larger city. This idyllic mountain hamlet currently provides over 2,500 residents with postcard-perfect views, beautifully maintained community parks, a nine-hole golf course, hiking and mountain biking trails, world-class fishing, emerald lakes and endless backcountry to explore.

It’s not unusual to spot wildlife strolling down the streets. Wildlife native to the Elk Valley include grizzly and black bears, mountain goats, moose, lynx, wolves, wolverines, foxes, cougars, elk and deer. In fact, more bighorn sheep inhabit the district of Elkford than any other place in North America, and wildlife photographers will be pleased to find them dotting the cliffs on the edges of town.

2020 Annual Report: Page 4

PHOTO: “District of Elkford Office” by Stephanie Wells

QUICK FACTS • • •

•

Population: 2,500+ Elevation: 1,300 metres Location: Southeastern British Columbia, 35 km north of Sparwood on Highway 43 Local attractions: Elk Lakes Provincial Park, Josephine Falls, Height of the Rockies Provincial Park, Sulphur Springs

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BUSINESS • •

Primary industries: Mining and forestry Median household income: $110,379 (Statistics Canada, 2016)

While Elkford continues to have strong connections to the mining and forestry industries, several trends are contributing to Elkford’s population growth, long-term viability and economic future as bright, clean and safe place for its residents

GOVERNMENT •

•

•

Personnel: 50 permanent employees, supported by casual staff Committees and Commissions of Council: Citizens’ Advisory Committee, Urban Wildlife Management Advisory Committee, Youth Action Network Commission 36 meetings: 22 regular, 10 Committee of the Whole, 3 special, 1 public hearing

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DISTRICT OF ELKFORD

MAYOR AND COUNCILLORS

Dean McKerracher Mayor

Steve Fairbairn Councillor

Len Gostick Councillor

Andrew Klapp

Duncan McDonald

Councillor

Councillor

Mandy McGregor

Craig Robinson

Councillor

2020 Annual Report: Page 7

Councillor

DISTRICT OF ELKFORD

YOUTH COUNCIL REPS Each year, two Elkford Secondary School student volunteers are appointed to represent youth at the council table. These young community leaders are elected on a one-year term, joining Mayor and Council to increase awareness of youth-related issues, advocate for their peers and speak on behalf of youth during deliberations. In turn, they also communicate the issues, priorities and decisions that Council faces to their peers.

Elkford is a relatively young community with a history of inviting its youth to speak up and get involved. Nearly two decades ago, District of Elkford Council was among the first in the region to welcome youth representatives. The initiative helps youth understand how the budgeting process works to meet strategic planning priority projects, as well as to join the conversation about decisions that affect them.

“Youth Councillors bring a fresh perspective to many issues of importance,” says Mayor Dean McKerracher. “They may not have a vote, but they do have a voice. Our two current representatives are affiliated with several youth-related organizations in Elkford, and they have been outstanding advocates for their peers in the community.”

For the 2020-21 term, the District welcomed Brayden Sorensen as the Senior Representative. Brayden is well-known in the community for his excellent work ethic and his participation in the 279 Air Cadet Squadron and the Student Advisory Council Leadership Team. Riley Murray returned for his second consecutive term as Junior Representative, bringing his positive attitude and experiences with Student Council and the SYS.tem Youth Action Network in Elkford.

Brayden Sorensen Senior Youth Council Representative

2020 Annual Report: Page 8

Riley Murray

Junior Youth Council Representative

Tyler Madsen

Chantel Dawson

Director of Corporate Services, Corporate Officer

Chief Administrative Officer

Marilyn Rookes

Jeremy Johnston

Director of Financial Services, Financial Officer

Director of Planning and Development Services

Jesse Huisman

Darryl Hickman

Director of Engineering and Public Works

Director of Leisure Services

DISTRICT OF ELKFORD

DIRECTORS Curtis Nyuli

Interim Director of Fire Rescue and Emergency Services

2020 Annual Report: Page 9

Auditor: Bank: Solicitor:

BDO, Canada LLP East Kootenay Community Credit Union Majic, Purdy Law Corporation

MESSAGE FROM

MAYOR MCKERRACHER

2020 Annual Report: Page 10

“

“

I am humbled by the resilience, compassion and personal sacrifices demonstrated by Elkford residents to keep our families, friends and neighbours safe and healthy. As a municipality, our team acted quickly to adapt services and programs to serve our community.

Despite the unique obstacles we faced, our entire team worked tirelessly to meet the strategic direction and goals set for the year, and I am deeply proud of the successes that we saw in 2020.

On behalf of Council and staff of the District of Elkford, it is my pleasure to present to you the 2020 Annual Municipal Report.

Each decision, expenditure and project is guided by the Official Community Plan, Five Year Financial Plan and Strategic Plan. Each of the accomplishments is a direct reflection of the District’s commitment to the continued enhancement of our community. Most importantly, I encourage you to read between the lines of the numbers, statistics and jargon. In doing so, you will get a true sense of the collective effort and determination of employees, citizens and volunteers who are dedicated to the betterment of Elkford.

Nearly every department in the District of Elkford welcomed new staff in 2020. From Corporate and Finance, that kept our collective health and best interests protected; to the Recreation and Leisure Services Departments, that kept our families swimming, skating and active when they needed it most; to the Elkford Fire Rescue team that tirelessly put out fires and performed wildfire mitigation; to Bylaw, Planning and Development that kept us striving toward a cleaner and safer community; to Public Works and Maintenance crews that kept essential services running smoothly so that we had less to worry about during COVID-19, we had all boots on the ground.

It would take several pages for me to outline all of 2020’s accomplishments, but I want to take this opportunity to share some highlights with you. I point out that these projects and accomplishments were all achieved while successfully maintaining the day-to-day operations and service levels that we are proud to offer to our citizens.

The Leisure Services Department saw impressive changes, including the build of a new storage facility, which serves the department’s maintenance and storage needs, several indoor renovations at the Recreation Centre, and the replacement of the facility’s furnaces— with the help of a $42,765 Columbia Basin Trust grant.

In 2020, we continued to work with the Elkford Housing Society toward their goal of constructing a seniors’ living facility in Elkford, with ground-breaking estimated for summer 2021. I am tremendously proud of the Society’s work, and I highlight the long-term benefit that this facility will create for our community and our aging citizens.

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Summer 2020 saw the continuation of a long-term paving project to replace roads for major portions of the community. Overseen by Public Works, contracting company BA Blacktop Ltd. completed the installation of brand-new asphalt and sidewalks in uptown and midtown in October, complete with enhanced connectivity and cycling/walking routes for the community to enjoy, through an added $500,000 Active Transportation B.C. grant.

We began a comprehensive communications strategy review, and I am excited to report that since mid-2020, our team has been working toward the complete rebuild of our website. We eagerly await the launch of the website in fall 2021. Adding a dedicated in-house communications role to the District Office in 2020, we have also enhanced our social media presence and modernized the appearance of our digital and print communications.

We welcomed a new full-time, contracted Bylaw Enforcement Officer, and under Council’s direction, the Bylaw Department addressed several compliance issues, including unsightly properties and encroachments, winter parking violations, and unlicensed pets. A significant interdepartmental bylaw and policy review got started, with an overhaul to several dated bylaws and policies, better aligning them with our community’s current needs and operations. As part of our ongoing commitment to community safety and wildfire protection, several wildfire management treatments took place in 2020, providing improved safety to properties within Elkford.

While we are very proud of the projects and initiatives that the District has worked on this past year, I want to offer a special note of gratitude to Elkford’s countless volunteers who continue to serve our community. Without your tireless efforts, living in our beautiful town would not be as fulfilling and rewarding as it is.

As your Mayor and an extremely proud member of this community, I am pleased with the progress we witnessed in 2020 and look forward to seeing what is in store for us in the coming year!

District of Elkford Mayor

Dean McKerracher

MESSAGE FROM

CHIEF ADMINISTRATIVE OFFICER

Each year, preparing the District of Elkford’s Annual Report provides us with an opportunity to reflect on the work that the District team has accomplished to advance the key strategic priorities of council and the community.

2020 Annual Report: Page 12

“

“

Council and staff develop and update several strategic and operational priorities which continue to move the district forward in a safe, healthy and sustainable manner.

The District’s corporate values make Elkford a desirable place to call home, both to those who have already set up roots and to those looking for an affordable and attractive relocation option in the Elk Valley.

Going into 2020, council provided staff with a clear message to address a number of outstanding initiatives throughout the District, including improved communications, improved bylaw compliance, an internal staffing review and secure financing to ensure the District could proceed with paving in Abruzzi Heights. In addition to this, staff and council were excited to begin planning for the District’s 50th Anniversary celebration in 2021!

Unfortunately, in March 2020, the COVID-19 pandemic initiated a change in how we do business on multiple fronts. District staff adapted our internal operations to the changing world while also supporting the regional emergency operations centre, run through the Regional District of East Kootenay. For the remainder of the year, we changed our practices and procedures to adapt to, and support, the Provincial health orders surrounding the pandemic and its effects.

Notwithstanding the challenges of the pandemic, the District was able to move forward with council’s direction. A number of personnel changes took place, including new appointments to the leadership positions within the Corporate Services, Planning and Development and Public Works Departments.

In addition, we entered into a contract with Commissionaires BC to provide full-time bylaw enforcement services within the District to begin addressing a multitude of long-standing issues, with the goal of overall improvement to quality of life and community vibrancy.

2020 Annual Report: Page 13

Forging forward through the challenges of 2020, the District’s social media and community relations presence immensely improved, recreational programming continued under pandemic restrictions, and the Abruzzi Heights paving project was completed on time with minimal disruption for a project of its magnitude.

District council and staff also continued to support the Elkford Housing Society in its plans to create housing opportunities for seniors, which will allow many of our long-term citizens to age and retire in place. This is an exciting project for the future of Elkford!

We also continue to work with Teck Resources to ensure Elkford’s longterm vibrancy and sustainability, and we look forward to continued positive engagement with the company.

Although this report is an annual requirement of the Community Charter, it serves a bigger purpose. I am proud to present it to you as it allows us to showcase the work, progress and success of our organization.

I am so pleased to be part of this community and our District team, as well as to represent the entire organization in this report.

Chief Administrative Officer

Tyler Madsen

DISTRICT OF ELKFORD

VISION & VALUES Through innovative leadership, we provide opportunities for responsible growth, in harmony with industry and the environment. We take advantage of opportunities that enhance affordable community living and sustain the quality of life that citizens, businesses and visitors expect.

PHOTO: “Community Conference Centre” by District of Elkford The future vision of Elkford is one of a safe, healthy, Fairness and Ethics

vibrant, progressive and sustainable community in a wilderness environment. The community will have a stable and diversified economy, supported by citizens with a strong sense of community pride.

Innovation and Competency

Responsibility and Accountability

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DISTRICT OF ELKFORD

OFFICIAL COMMUNITY PLAN The Official Community Plan (OCP) is the foundational document that guides all of Elkford’s strategic priorities and directions. This OCP establishes a long-term vision for our community’s future.

Elkford’s OCP integrates land use, economy, environment, transportation, community facilities, services, and climate change and creates a broad strategy to direct growth and development while protecting and enhancing residents’ It describes the community’s current quality of life. broad objectives around form, character and community life and it reflects the ideas and input of participants, including residents, nonprofit groups, stakeholders, experts, District staff and council.

In addition, the Elkford OCP is unique as it is the first in B.C. to incorporate both an integrated Climate Change Adaptation Strategy and a Greenhouse Gas Reduction Strategy. Both strategies were developed concurrent with the OCP. Collectively, the policies contained within the OCP are intended to provide a degree of certainty for the future of the community.

Municipalities in British Columbia are given the authority to adopt an OCP through Part 26 of the Local Government Act (LGA). This legislation stipulates what must or may be included in an OCP.

GUIDED BY

STRATEGIC DIRECTIONS • • • • •

A vibrant community A sustainable community A safe and healthy community A community with pride An effective and efficient organization

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STRATEGIC DIRECTIONS

VIBRANT COMMUNITY MEASURES 1. Public satisfaction with overall liveability, leisure and education opportunities and health care services 2. Number of people who use Elkford’s recreation facilities 3. Number of seniors that reside in Elkford (from Census data) 4. Number of new residents moving to Elkford

STRATEGIES ASSIST IN MAINTAINING SUITABLE HEALTH SERVICES IN THE COMMUNITY • Ongoing dialogue and continued lobbying with Interior Health regarding enhanced services, recruitment of medical staff • Elkford’s Mayor is the long-term Chair of the Kootenay East Regional Hospital District • Accessibility considerations at all new District facilities and when redesigning facilities and public spaces IMPROVE EDUCATIONAL OPPORTUNITIES IN THE COMMUNITY • Promotion of Elkford’s Youth Council Policy locally and regionally, with two Youth Councillors appointed to District Council each year • Offer a comprehensive roster of programs that serve to enrich knowledge for all ages • Continuation of student employment opportunities and scholarship programs • Ongoing dialogue with School District 5 regarding educational programs and initiatives as required 2020 Annual Report: Page 16

PHOTO: “Elkford Housing Society” by Judy Zimmer

VIBRANT COMMUNITY STRATEGIES (CONT.)

DEVELOP SENIORS’ HOUSING OPERATIONS • Appointed two Council representatives to the Elkford Housing Society Board • Ongoing support to the Society in its seniors’ housing facility, with continued lobbying of external stakeholders to support the project • Supported reduced fees for various development permit costs for the Seniors’ Housing complex

PHOTO: “Lake Views in Elkford” by Ryan Wilson

2020 Annual Report: Page 17

PHOTO: “Winter in the Wild, 2020” by Judy Zimmer

VIBRANT COMMUNITY STRATEGIES (CONT.)

ENHANCE RECREATIONAL AND CULTURAL OPPORTUNITIES • Recreational services agreement review underway to better support service groups offering recreational and cultural services • Partnering agreements in place with Elkford Arts Council, Wapiti Ski Club, Elkford Public Library, Elkford Curling Club • Ongoing dialogue with Mountain Meadows Golf Club to provide support and work toward a new operating agreement • Working with the Elkford ATV, Snowmobile and Biking Clubs to better support the services they offer • Offer reduced facility and ice rental rates to Elk Valley Minor Hockey Association and the Elkford Figure Skating Club • The Financial Assistance Policy provides financial assistance to local non-profit organizations to help offer recreational and cultural opportunities • Leisure Services Department continued to offer programming as able under COVID guidelines and restrictions • Ongoing improvements and maintenance to parks, trails and community recreational areas, including portions of the Trans Canada Trail • Contract awarded and construction started for Elkford’s Meeting Place, an outdoor public gathering space between the District Office and Community Conference Centre, with grant funding of $340,781 from Columbia Basin Trust

2020 Annual Report: Page 18

VIBRANT COMMUNITY STRATEGIES (CONT.)

ENHANCE RECREATIONAL AND CULTURAL OPPORTUNITIES (cont.)

• Recreation Centre renovations underway, with upgrades to common spaces, washrooms, signage, and overall aesthetic • Recreation Centre furnaces replaced with the assistance of a Columbia Basin Trust grant in the amount of $42,765 • Recreation storage facility constructed • Successful in Active Transportation grant in the amount of $500,000, used toward the improvement of sidewalks and trails, and completion of the Loop Trail

2020 Annual Report: Page 19

• •

•

Participation in the Elk Valley Recreation Pass program Grant application submitted to the Investing in Canada Infrastructure Program Rural and Northern Communities for enhancements and upgrades along the Boivin Creek trail and recreation corridor.

Columbia Basin Trust grant funding extended for the Youth Action Network Commission for the SYS.tem Youth Network

STRATEGIC DIRECTIONS

SUSTAINABLE COMMUNITY MEASURES 1.

Public ublic satisfaction with public infrastructure, development processes, social support systems and business services

2.

New assessment for businesses, residents and industry

3.

Number of business licences

4.

Building permits

5.

Number of new housing units

6.

Percent of taxes from industrial tax base

STRATEGIES PROMOTE ECONOMIC GROWTH, DIVERSITY AND STABILITY • Ongoing dialogue with key industry stakeholders Teck Coal, North Coal and NWP Coal focusing on economic growth strategies and housing needs for the community • Continued monitoring and liaising reading Teck Coal’s Elk Valley Lodge, maintaining a seat on the company’s Community Effects Advisory Committee regarding the facility • Ongoing lobbying and strategizing for local childcare services with stakeholders and businesses • Worked with the Elkford Women’s Task Force Society to submit a grant application to the Childcare New Spaces Fund and the Investing in Canada Infrastructure Program to renovate and operate the former District Office as a childcare centre

2020 Annual Report: Page 20

PHOTO: “Teck’s Fording River Mine” by Tasha Chorneyko

SUSTAINABLE COMMUNITY STRATEGIES (CONT.)

SUPPORT AND IMPLEMENT ENVIRONMENTALLY FRIENDLY PRACTICES THAT PRESERVE THE WILDERNESS • Participation in the Climate Action Program with Columbia Basin Trust • Maintain the energy conservation reserve fund • Public awareness campaigns around recycling, garbage disposal, respectful use of wilderness areas • Ongoing operation of the Urban Wildlife Management Advisory Committee to monitor and mitigate urban wildlife issues in the community

2020 Annual Report: Page 21

SUSTAINABLE COMMUNITY STRATEGIES (CONT.)

MAINTAIN AND EXPAND INFRASTRUCTURE AT AN OPTIMAL LEVEL • Phase one of a two-year paving program completed in the Abruzzi Heights Subdivision area • Successful in Active Transportation grant in the amount of $500,000, used toward the improvement of sidewalks and trails, and completion of the Loop Trail • Staff participation in UBCM Grant Funding/ Asset Management Workshop • Asset inventories complete between Engineering and GIS • Initiated early states of data collection and best practice research toward asset management plan • Recreation Centre furnaces replaced with the assistance of a Columbia Basin Trust grant in the amount of $42,765

2020 Annual Report: Page 22

HAVE ENERGY EFFICIENT FACILITIES • Ongoing commitment to construct and renovate District facilities to energy efficient standards and to incorporating legislated energy efficiency requirements into bylaws and policies • Ongoing street lighting replacement project budgeted to convert to LED lighting

SUSTAINABLE COMMUNITY STRATEGIES (CONT.)

DEVELOP STRONG PARNERSHIPS WITH THE BUSINESS COMMUNITY • Continued active member of the Elk Valley Economic Initiative Committee • Partnering agreement in place with the Elkford Chamber of Commerce • District staff representative appointed to the Chamber Board of Directors • Submitted grant application for funding to create spaces to promote small businesses and non-profits with flexible work spaces

PHOTO: “Josephine Falls in Elkford” by Shelly Wollmann Images 2020 Annual Report: Page 23

STRATEGIC DIRECTIONS

EFFECTIVE & EFFICIENT ORGANIZATION MEASURES 1. Public satisfaction with the level of local government accessibility, communication, openness and public involvement in decision-making 2. Public satisfaction with district services 3. Staff perception of morale 4. Citizen, staff and council perception of team effectiveness

STRATEGIES ENCOURAGE ORGANIZATIONAL PRIDE • Hosted annual employee curling bonspiel • Initiated internal employee announcements for new hires and succession planning announcements • Other employee events postponed due to COVID-19

PHOTO: “Petain Basin” by Jeff Gifford (Drone Travels.ca Photography)

2020 Annual Report: Page 24

PHOTO: “Senior Management Team of the District of Elkford” by Tasha Chorneyko Not pictured here: Curtis Nyuli, Interim Director of Fire Rescue and Emergency Services

EFFECTIVE & EFFICIENT ORGANIZATION STRATEGIES (CONT.) IMPROVE FACILITY OPERATIONS • Appointed permanent directors to senior management roles in Corporate Services, Public Works and Planning and Development Services • Hiring of full-time Bylaw Enforcement Officer, contracted through Commissionaires B.C. • Initiated review of dated and non-existent position descriptions • Initiated planning for CUPE Collective Bargaining in preparation of expiration of agreement in 2021 ENHANCE COUNCIL EFFECTIVENESS • Strategic Planning sessions took place in early 2020 • Increased electronic means of public participation to council meetings due to pandemic • Participation of appointed members of council in board/committee meetings and events, largely virtually due to COVID-19

2020 Annual Report: Page 25

STRATEGIC DIRECTIONS

SAFE & HEALTHY COMMUNITY MEASURES 1. Public perception of community safety and health 2. Fire Department incidents of emergency response per capita/per property 3. Crime statistics in the Elk Valley and British Columbia 4. Citizen participation in personal health activities

STRATEGIES • MITIGATE SIGNIFICANT COMMUNITY HEALTH AND SAFTEY RISKS • COVID-19 pandemic safety plans and procedures created, amended as required, and communicated under the direction and guidelines of Provincial health authorities • Support to the BC Wildfire Service for the Lost Lake/Lily Lake Wildfire occurrence in the fall of 2020 • Maintain Emergency Operations Centre program and ongoing training of personnel • Elkford participates in the Emergency Management Program coordinated by the RDEK. • Ongoing community wildfire/fuel management plan in place, some under grant funding

Increased electronic communications methods and service options to accommodate COVID-19 restrictions and guidelines, even through closure of facilities to the public from mid-March to early June

PHOTO: “Elkford Fire Rescue” by District of Elkford

2020 Annual Report: Page 26

Former District of Elkford Fire Chief, Corey Kortmeyer, and current Interim Fire Chief, Curtis Nyuli.

PHOTO: Tasha Chorneyko

SAFE & HEALTHY COMMUNITY STRATEGIES (CONT.)

PROTECT PROPERTY AND PERSONS FROM CRIMINAL ACTIVITY • Quarterly RCMP crime statistics reports and presentations to council • Social media posting regarding vandalism issues and encouraging residents to report such activities • Ongoing lobbying efforts to solicit increased police presence in Elkford

2020 FIRE RESCUE STATS

2020 Annual Report: Page 27

STRATEGIC DIRECTIONS

COMMUNITY WITH PRIDE MEASURES 1.

Public pride in the community

2.

Public perception of visual appeal of the community

3.

Public satisfaction with overall liveability

4.

Public perception of streetscapes and property appearances

5.

Number of citizens who volunteer in community events and programs

6.

Public participation in community events

STRATEGIES INCREASE CITIZEN AWARENESS AND ENGAGEMENT • Improved communications and an updated website set as strategic priorities • Created a dedicated communications role, and hired an experienced communications professional • Began an overhaul of corporate communications efforts, with a focus on modernizing and streamlining branding, copywriting, editing, advertising, marketing, photography, social media management and communications policy • Engaged web developers, Atomic Crayon, and began work on a completely redesigned website, with launch anticipated in fall 2021 • Hosted Winter in the Wild event in February 2020 • Long-term Citizen of the Year Program recognizing volunteer efforts of citizens in place to recognize volunteer efforts of citizens 2020 Annual Report: Page 28

•

Increased electronic communications methods and service options to accommodate COVID-19 restrictions and guidelines, even through closure of facilities to the public from mid-March to early June

PHOTO: “The Locals” by Tasha Chorneyko

PHOTO: “Wildcat Days, 2019” by Judy Zimmer

Due to COVID-19, many community events and initiatives were postponed (e.g., Wildcat Days) or restructured to virtual events (e.g., Remembrance Day and the National Day of Mourning) to comply with public health orders.

COMMUNITY WITH PRIDE STRATEGIES (CONT.)

SUPPORT AND COOPERATE WITH COMMUNITY GROUPS • Financial and In-Kind Assistance Policy administered, supporting a variety of local groups in their endeavours to offer services to the community • Recreational services agreement review underway to better support service groups offering recreational and cultural services • Partnering agreements in place with Elkford Arts Council, Wapiti Ski Club, Elkford Public Library, Elkford Curling Club • Ongoing dialogue with Mountain Meadows Golf Club to provide support and work toward a new operating agreement • Worked with the Elkford ATV, Snowmobile and Biking Clubs to better support the services they offer • Offer reduced facility and ice rental rates to Elk Valley Minor Hockey Association and the Elkford Figure Skating Club 2020 Annual Report: Page 29

CELEBRATE ELKFORD’S SUCCESSES • Council participation in the Elected Officials’ Meeting where community successes and progresses are shared at a regional level • News releases distributed for successful projects • Increased response and distribution to positive social media input from citizens BEAUTIFY THE COMMUNITY • Hanging basket program in summer months • Increased trail maintenance and upgrades • Bylaw department focus on unsightly properties and greenspace encroachments via the Clean Up Elkford Campaign

2020

STRATEGIC PRIORITIES The Strategic Plan is the framework guiding council and staff toward the future. The framework is rooted in Elkford’s corporate mission, vision and values and put into motion through a series of strategies and objectives that are determined on an annual basis.

Staff meets with council annually to review and refine the District’s strategic plan, ensuring that goals align with the dynamic demands and expectations of diverse population.

COUNCIL

PRIORITIES •

•

Abruzzi Heights infrastructure replacement

review

construction • •

Financial and In-kind Assistance Policy

Elkford’s 50th Anniversary planning and

•

Old District Office disposal/sale

recognition

•

Increased bylaw compliance

Communications strategy and updated website

OPERATIONAL

PRIORITIES •

Staffing review

•

Bylaw and policy review

•

Asset management planning

•

Multi-use recreation storage building

•

Abruzzi Heights infrastructure replacement construction

2020 Annual Report: Page 30

•

Community Conference Centre landscaping

•

Community Conference Centre solar panels (through grant)

•

Elkford’s 50th Anniversary planning and recognition

2020 (CARRIED FORWARD TO 2021)

STRATEGIC PRIORITIES COUNCIL

PRIORITIES •

Abruzzi Heights infrastructure replacement construction

•

Elkford’s 50th Anniversary planning and recognition

•

Communications strategy and updated website

OPERATIONAL

PRIORITIES •

Staffing review

•

Bylaw and policy review

•

Asset management planning

•

Multi-use recreation storage building

PHOTO: “Rec Operations Supervisor, Wayne Mihalicz, installing ice” by Judy Zimmer

2020 Annual Report: Page 31

2021

STRATEGIC PRIORITIES COUNCIL

PRIORITIES •

Elkford’s 50th Anniversary planning and

•

Non-motorized bike park support

recognition

•

Teck work camp: temporary use permit

•

Town Centre revitalization (land and signage)

•

Elkford marketing package

•

Recreation service agreements review

•

Childcare facility (in former District Office building)

OPERATIONAL

PRIORITIES Elkford’s 50th Anniversary planning and

•

Collective bargaining

recognition

•

Off-road vehicle bylaw/service review

•

Boivin Creek Corridor: landscaping plan

•

Non-motorized trails development

•

Urban elk population management (hazing

•

Elkford Fire Rescue personnel policy

•

trial)

2020 Annual Report: Page 32

2022

STRATEGIC PRIORITIES

PHOTO: “Aerial of Elkford” by District of Elkford

COUNCIL

PRIORITIES •

Riverview Park (landscaping plan)

•

Watershed management plan

•

Town Centre (development and construction)

OPERATIONAL

PRIORITIES •

Elkford’s 50th Anniversary planning and recognition

•

Boivin Creek Corridor: implementation

•

Fuel tank replacement (Public Works)

2020 Annual Report: Page 33

2020

DEPARTMENTAL HIGHLIGHTS 2020 Annual Report: Page 34

DISTRICT OF ELKFORD

CORPORATE ADMINISTRATION Internally, the entire District team depends on the Corporate Administration Department to provide service, support and direction in the areas of council proceedings, corporate planning and sustainability, legislative accountability, strategic leadership, human resources, labour relations, information management, communications and legal services.

Externally, the work of the Corporate Administration Department is manifested in our team’s excellent customer service, council’s transparent governance, and successful inter-governmental and community relations.

Appointed by council, the Chief Adminsitrative Officer (CAO) is the most senior role in the District’s administrative structure. The CAO is accountable to council, and oversees the efficient and effective management of the entire municipality. He is responsible for ensuring that council’s direction, policies, bylaws and strategic plans are implemented and delivered.

The Director of Corporate Services (Corporate Officer) oversees the Corporate Services Department, providing multi-faceted support to council and staff to ensure responsible and effective governance.

The department is small, but mighty, and includes a dedicated Office Clerk 1 who handles reception duties, administrative support and records management, as well as a Communications Coordinator who supports all departments, performs brand management and produces all internal and external communications. The corporate team is backed by casual employees who provide reception relief and administrative support.

PHOTO: “Tyler Madsen, Chantel Dawson, Wanda Thompson and Tasha Chorneyko” by Jamie Robertson

2020 Annual Report: Page 35

THE COVID-19 PANDEMIC

Leisure Services Clerk, Dee Boarder, and Jackson at Christmas (Photo: Tasha Chorneyko)

2020 saw us focusing largely on adjusting organizational operations to align with the unpredictable COVID-19 pandemic. In addition to serving the community throughout a global pandemic, we prioritized the safety of our employees and citizens while striving to offer as many services, amenities and recreational opportunities as safely as possible. Our team impressively evolved to the guidelines of the provincial and federal governments and health authorities.

COMMUNICATIONS STRATEGY

Communications Coordinator, Tasha Chorneyko, out exploring with her camera and her dog (Photo: Nick Holland)

In 2020, council identified improved communications and an updated website as strategic priorities, leading to the creation of a dedicated communications role and the onboarding of an experienced communications professional. With the goal of increasing citizen awareness and engagement and community pride, we started an overhaul of corporate communications efforts; this included a focus on modernizing and streamlining our branding, copywriting, editing, advertising, marketing, photography, social media management and communications policy. Working with web developers, Atomic Crayon, we have made great progress on a brand-new website, which is being redesigned externally and rewritten internally.

We anticipate the launch of the new website in the fall of 2021.

HUMAN RESOURCES

Anti-Bullying Day at the District of Elkford (Photo: Tasha Chorneyko)

2020 Annual Report: Page 36

From 2019 to 2020, our organization demonstrated its capacity to gracefully cope with change, welcoming many new team members and senior managers who seamlessly led the team through the personnel changes, all the while maintaining the day-to-day operations of our community, and achieving strategic goals and priorities.

BYLAW POLICY AND REVIEW

Dee Boarder, Wanda Thompson, Chantel Dawson and Jamie Robertson (Photo: District of Elkford)

2020 saw significant progress in in the long-term undertaking of reviewing and updating bylaw and policies to bring them up to modern standards and better align them with the community’s current needs. As the environment constantly changes around us, and as our organization and community move forward, we continue to adapt and implement policies, bylaws and procedures that make the best sense to our employees and our citizens.

“

Corporate Services is an all-encompassing department in local government. Every day, I am amazed at the diversity of our department and how adapative, versatile and dedicated our team is. We are a small department, but each of our staff posesses a specialized skill-set that, unified, allows us to provide our colleagues and community members with exceptional service and to represent our organization and town with pride, flair and enthusiasm.

Chantel Dawson

2020 Annual Report: Page 37

“

Director of Corporate Services

DISTRICT OF ELKFORD

FINANCIAL SERVICES

PHOTO: “Erica Hart, Marilyn Rookes, Courtney Culver and Jamie Robertson” by Tasha Chorneyko

Overseen by the Director of Financial Services, the Finance Department is responsible for administering the financial resources of the municipality. In addition to providing financial guidance and information to Council, staff and the public in the financial planning endeavours of the organization, the department is also accountable for revenue collection, grant management, payroll, accounts payable, taxation, accounts receivable, risk management, insurance, annual tax sale and statutory reporting.

Under the leadership of the Director of Financial Services, council and staff undergo a comprehensive annual financial planning process to set annual budgets and goals, all anchored in the District’s Official Community Plan, strategic plan and mission, vision and values.

2020 presented us with unique challenges and found us navigating uncertain times, all due to the unprecedented COVID-19 pandemic. Despite the everchanging nature of the pandemic, we stayed the course with budgeted projects and priorities—including a significant paving infrastructure project.

Director of Financial Services

Marilyn Rookes 2020 Annual Report: Page 38

‘‘

‘‘

Statement of Permissive Tax Exemptions Granted in 2020 Section 224 of the Community Charter enables council to exempt, by bylaw, certain properties from municipal taxes. In accordance with Section 98(2) (b) of the Community Charter, following properties in the District of Elkford were provided permissive property tax exemptions for 2020 by Council.

Churches are generally exempt from property taxes under a general statutory exemption. The permission exemption exempts the land that surrounds the church. The Community Charter also allows Council to provide exemption to properties held by Clubs that provide public recreation, such as the Ski Hill or Golf Course. Council is not permitted to exempt recreation property owned and operated as a business for profit.

2020 Annual Report: Page 39

Our organization maintained a stable financial position throughout 2020.

Net financial assets decreased by $3,445,086 while non-financial assets increased by $6,002,998, equating to an increase in accumulated surplus of $2,557,912. Residential taxes increased on average by 8 per cent.

FINANCIAL POSITION

AUDITED FINANCIAL STATEMENTS The 2020 District of Elkford Consolidated Financial Statements are found on page 54 and include: • • • • • • • • •

Report of Responsibility of Management Independent Auditor’s Report Statement of Financial Position Statement of Operations Statement of Change in Net Financial Assets Statement of Cash Flows Summary of Significant Accounting Policies Notes to Financial Statements Schedule of Segment Disclosure

2020 Annual Report: Page 40

PHOTO: “Bighorn Rams in41Elkford” by Jody Christopherson 2020 Annual Report: Page

DISTRICT OF ELKFORD

PLANNING AND DEVELOPMENT SERVICES The Planning and Development Services Department is responsible for long-term community planning, development, building inspection, land management, economic development, and geographic information systems (GIS). The department also manages bylaw enforcement and keeps the District’s information technology systems running.

In 2020, Planning and Development Services took definitive steps toward improving quality of life in Elkford and delivering on the Official Community Plan’s Guiding Principles, under the guidance of council’s Strategic Priorities.

PHOTO: “Bylaw Officer Leach, Jeremy Johnston and Chris Hust” by Tasha Chorneyko (Not pictured here: Planning and Development Services’ Building Inspector, Bruce Hunter)

ELKFORD’S MEETING PLACE We applied for and were awarded a $340,781 grant to transform the space located between the new District Office and Community Conference Centre into a community gathering space, complete with a gazebo, benches and a fire pit. The design was initiated in summer 2020, with construction scheduled to be complete in June 2021.

2020 Annual Report: Page 42

DOWNTOWN MASTER PLAN We initiated a master planning project for downtown Elkford and engaged with the Elkford community on several occasions, helping to define a collaborative vision for this future community and commercial core of town. The final plan is expected to be released in mid-2021.

BOIVIN CREEK CORRIDOR PROJECT We drafted a plan for, and submitted a grant application to, the Investing in Canada Infrastructure, Rural and Northern Communities grant program for landscape and recreation upgrades to the Boivin Creek Corridor in the amount of $1,270,000. This plan includes upgrades to the District’s skate park and the installation of a new bicycle dirt-jump park. The results of the grant program are expected in early summer 2021.

2020 Annual Report: Page 43

PROMOTING AN ACTIVE COMMUNITY We drafted a plan for a submission to the Investing in Canada Infrastructure, COVID-19 Infrastructure Resilience grant program for new pedestrian connections along Alpine Way and Boivin Road, completing the Loop Trail. The results of the grant program are expected in early summer 2021.

Family Yoga (Photo: Judy Zimmer)

BYLAW ENFORCEMENT

Bylaw Officer Leach (Photo: Tasha Chorneyko)

A new Bylaw Enforcement Officer was hired through a contract with Commissionaires B.C., with Officer Leach demonstrating tremendous success in improving compliance with District’s bylaws. Enforcement priorities in 2020 included winter parking, animal control, addressing unsightly properties and encroachment on District greenbelts.

BUILDING AND DEVELOPMENT

Street Sign (Photo: District of Elkford)

Working with the Elkford Housing Society, we assisted with bringing applications to council to facilitate the development of a Seniors’ Housing building in Elkford Building permit applications are expected in 2021. We had a busy construction season, processing a total of 58 building permit applications, including 16 new home starts, at an estimated construction value of $4,139,472.

IMPROVED COMMUNICATIONS Working with Corporate Services, we initiated a project to create a new District website that improves service delivery and economic development. With the developers citing delays related to COVID-19, the new website is projected to launch in fall 2021.

Clean at Heart Campaign (Photo: Tasha Chorneyko)

2020 Annual Report: Page 44

DISTRICT OF ELKFORD

PUBLIC WORKS PHOTO: “Paving Project Underway” by Jesse Huisman

Overseen by the Director of Engineering and Public Works, the Public Works Department consists of a team of skilled operators, labourers, a mechanic and a clerk. The team is committed to maintaining effective and efficient services and infrastructure, including roads and traffic, water and wastewater utilities, solid waste collection, equipment and fleet management, snow removal and major capital works projects.

TRANSPORTATION SERVICES In 2020, the Public Works Department purchased a new, single-axle hooklift plow/sand truck to replace one of the ageing plow/sand trucks. This unit enables more efficient and reliable snow removal, and the hooklift unit allows the sander portion to be removed and replaced with other attachments in the summer as the needs grow. Public Works continued to use the Bobcat Toolcat, with blade and snowblower attachments, to provide a more effective means of clearing snow and ice on sidewalks.

Additionally, in 2020, the Public Works Department oversaw the paving program in the Balmer Drive and Abruzzi Heights area, including complete asphalt replacement, the addition of new sidewalks and the replacement of sidewalk and curbs on higher traffic streets in the two neighbourhoods. This was the second part of a multi-year focus on roads, as directed by council’s strategic priorities, and will provide Elkford with decades of smooth driving to come.

2020 Annual Report: Page 45

2020 Annual Report: Page 46

PHOTO: “Public Works Department team” by Tasha Chorneyko Not pictured here: Travis Bauer and Tanner McLean

PHOTO: “Public Works” by Jesse Huisman

WATER, SEWER AND SOLID WASTE UTILITIES 2020 saw ongoing upgrades and planning to the Supervisory Control and Data Acquisition (SCADA) system. This is a control system used to monitor Elkford’s water and sewer systems, and ongoing upgrades are necessary to remain current with the technology.

Public Works carried out inspections on various infrastructure, but especially focused on storm and sanitary sewer in advance of the paving projects.

Public Works also engaged in a process to prolong and improve the life of the current #2 Sewer Lagoon. The multi-year plan includes works to improve the current infiltration basins and create a new infiltration basin to enable proper rehab process. This year, the clay berm lining in cell #5 was replaced with new material to address a leak discovered the previous year.

OTHER PROJECTS Alongside other District departments, the crew assisted with various small projects completed within the community.

2020 Annual Report: Page 47

DISTRICT OF ELKFORD

LEISURE SERVICES 2020 presented many challenges, but was also a very productive and successful year for Leisure Services.

The Leisure Services Department is the District’s Director of Leisure Services, and consisting of Aquatic Centre, Recreation Centre/Arena and Centre/Visitor Centre. The responsibilities of extensive, including the operation of the pool, ice

largest crew, led by the three major categories: Community Conference the Department are arena and curling arena.

The recreation maintenance crew maintains parks, greenbelts and trails, as well as all municipal facilities. The staff at the Community Conference Centre oversees all rentals, bookings, special events, recreation programming and Visitor Centre operation. In addition, the Director is responsible for liaising with external service groups to curate recreational opportunities for residents.

PHOTO: “New Signage” by Judy Zimmer

New signage was installed on the front of the Pool/Library Complex to resolve a frequent complaint that this facility was difficult to locate. Additionally, in 2020, a new storage facility was built behind the Recreation Centre. This was a project that was greatly needed and had been a priority for several years running.

2020 Annual Report: Page 48

PHOTO: “Kayla Smithies and Michelle Krenbrink” by Tasha Chorneyko

Additionally, ongoing renovations have been occurring throughout the Recreation Centre. At the tennis courts, the large poplar tree that had been causing damage to the court surface was removed with the help of expert arborists. The dedicated staff of the Leisure Services Department have devoted many hours to planning Elkford’s upcoming 50th Anniversary (scheduled for September 2021) and 2021 Wildcat Days events to ensure they are a success, despite the curveballs thrown by COVID-19.

PHOTO: “Judy Zimmer, Sydney Hubbard and Darryl Hickman” by District of Elkford

2020 Annual Report: Page 49

DISTRICT OF ELKFORD

LEISURE SERVICES One of the most exciting events of 2020 was locating and repairing a major leak in the main pool.

We were losing six thousand gallons of water per day, causing major chemical losses accompanied with heat loss. Thanks to the hard work from our Leisure Services staff, Public Works Department and Johnson’s Plumbing and Heating company, we managed to repair this with minimal damage and costs. Because of the lengthy maintenance shutdown required to repair this leak, the pool area also received a facelift at the same time. This included fresh paint, new signage, major cleaning and restructuring throughout the building.

The pool underwent restructuring, including a variety of new staff, accompanied with changes in operational requirements. COVID-19 has created many new challenges for this department, but we have tackled these challenges head-on to provide the District of Elkford with a very safe environment for the community to enjoy during these hard times.

PHOTO: “Sarah Landry, Rebecca Robinson and Milissa Vriend at the Aquatic Centre” by Tasha Chorneyko

2020 Annual Report: Page 50

PHOTO: “Rec Maintenance team member, Mich Gagnon” by Judy Zimmer

Director of Leisure Services

Darryl Hickman

2020 Annual Report: Page 51

“

“

At Leisure Services, we did our best throughout the year to provide excellent and safe services to the community, even with the many challenges and restrictions we have faced. We made the most of the closures outlined by provincial health authorities by using that time to work on renovations, maintenance and making improvements to our facilities. All in all, our staff worked tirelessly to overcome the obstacles we faced and serve our community when they needed us most.

DISTRICT OF ELKFORD

FIRE RESCUE AND EMERGENCY SERVICES The Fire Department is responsible for coordinating fire protection, rescue and emergency services for the District. In 2020, the Elkford Fire Department promoted fire safety in the community through a system of fire inspections and public safety initiatives. The department implemented further fuel reductions in the wildland urban interface and is treating two of the six areas identified as a threat due to wildfire.

In 2020, the District of Elkford was impacted by the COVID-19 pandemic. This resulted in adapting the traditional ways that we attend emergency callouts and host training. Measures, protocols and procedures were put in place to ensure the health and safety of our residents and our first responders. During this time, we were able to deal with emergencies effectively and efficiently as presented during the pandemic without illness to any of our crew members or the public.

PHOTO: “Fire Department Practice” by District of Elkford

This past year has seen a reduction in training. This was a result of the global pandemic and restrictions on travel and a systematic reduction of all services across disciplines throughout the Province.

However, we continued to advance firefighters toward their accreditation for the minimum training standards for the B.C. Playbook. These accreditations ensure our team is exceeding minimum training standards. We continue to train firefighters to the NFPA 1001 Firefighter 1 and 2 standards.

Two firefighters are working towards their Fire Officer II and IV Certifications.

Educational and training initiatives increase safety and contribute to our operational commitments to Elkford, ensuring that the community continues to count on highly trained and qualified emergency responders. In early 2020, we moved all training to online formats to avoid transmission of the COVID-19 virus. As pandemic restrictions eased, we began in-person training sessions. We kept teams small and screened our emergency personnel prior to training nights.

2020 Annual Report: Page 52

PHOTO: “Brothers and Sisters of the Elkford Fire Department in 2020” by Tasha Chorneyko

Sadly, we had to cancel our sixteenth Annual Fire Prevention Week Open House. With creative enthusiasm, we provided packaged educational materials and virtual fire and life safety lessons to Rocky Mountain Elementary School. We also fundraised for Angel Flight East Kootenay during our annual Christmas event, with physical distancing and COVID-19 measures in place. We also assisted various non-profit organizations in Elkford, including the Elkford Food Bank and the Elkford Figure Skating Club.

The District of Elkford supports Emergency Management, Emergency Support Services (ESS) and Search and Rescue (SAR). ESS and SAR trained its volunteer base, and the District supported them by providing operational funding for new and existing members.

2020 FIRE RESCUE STATS

In 2020, Elkford Fire Rescue responded to 113 total call outs: 28 medical incidents, 28 motor vehicle incidents, four structure fires, 28 false alarms, five public assists, four wildland fires, five burn complaints, two mutual aid, and 10 other type of callouts (CO alarms, assisting other agencies and vehicle fires).

2020 Annual Report: Page 53

Photo by Tasha Chorneyko

District of Elkford Financial Statements For the year ended December 31, 2020

District of Elkford Index Page

Management Report

Auditor's Report

3

4-5

Financial Statements Statement of Financial Position

6

Statement of Operations

7

Statement of Change in Net Financial Assets

8

Statement of Cash Flows

9

Summary of Significant Accounting Policies

10 - 12

Notes to Financial Statements

13 - 27

Schedule of Segment Disclosure

28 - 29

Management's Responsibility for Financial Reporting To Members of Council: In accordance with Section 167 of the Community Charter, I am pleased to submit the 2020 financial statements for the District of Elkford, together with the report of our auditors, BDO Canada LLP. The preparation of the financial statements is the responsibility of the District's management.

The statements have been prepared in accordance with Canadian public sector accounting standards ("PSAS"). These principles are based upon recommendations of the Public Sector Accounting Board ("PSAB") of CPA Canada.

Financial statements are not precise since they include certain amounts based on estimates and judgments. When alternative accounting methods exist, management has chosen those it deems most appropriate in the circumstances, in order to ensure that the financial statements are presented fairly in all material respects.

The District maintains systems of internal accounting and administrative controls of high quality, consistent with reasonable cost. Such systems are designed to provide reasonable assurance that the financial information is relevant, reliable and accurate and the District's assets are appropriately accounted for and adequately safeguarded.

Council is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the financial statements.

The elections for the positions of Council occur every four years. The current Council was elected in November 2018 and therefore the responsibility with respect to the reporting period rests with the current Council.

20469942 as5132549 Council members meet periodically with management, well as the external auditors, to discuss internal controls over the financial reporting process, auditing matters and financial reporting issues, to satisfy themselves that each party is properly discharging their responsibilities, and to review the annual report, the financial statements and the external auditors' report.

The financial statements have been audited by BDO Canada LLP Chartered Professional Accountants in accordance with Canadian generally accepted auditing standards on behalf of the ratepayers. The auditor's report expresses their opinion on these financial statements.

The auditor has full and free access to the accounting records.

Marilyn Rookes Director of Financial Services March 4, 2021 3

Tel: 250 426 4285 Fax: 250 426 8886 Toll-Free: 800 993 9913 www.bdo.ca

BDO Canada LLP 35 10th Avenue South Cranbrook, BC V1C 2M9 Canada

Independent Auditor's Report

To the Members of Council, Inhabitants and Ratepayers of the District of Elkford Opinion We have audited the accompanying financial statements of the District of Elkford, which comprise the statement of financial position as at December 31, 2020, and the statements of operations, changes in net financial assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the District of Elkford as at December 31, 2020 and its financial performance, cash flows and changes in net financial assets for the year then ended in accordance with Canadian public sector accounting standards.

Basis for Opinion We conducted 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 District 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 these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter We draw attention to the fact that the supplementary information in Schedule B does not form part of the audited financial statements. We have not audited or reviewed this supplementary information and, accordingly, we do not express any opinion, review conclusion or any form of assurance on this supplementary information.

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 public sector accounting standards, 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 District’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the District or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the District’s financial reporting process.

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 an 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 these financial statements.

4

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK District limited by guarantee, and forms part of the international BDO network of independent member firms.

Independent Auditor's Report (Continued)

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: ·

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 District’s internal controls.

·

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 District’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, future events or conditions may cause the District 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 statements 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.

Chartered Professional Accountants Cranbrook, BC April 26, 2021

5

District of Elkford Statement of Financial Position As at December 31

2019

2020

Financial Assets

Cash and investments (Note 1)

$ 14,487,037

$ 12,169,703

1,031,654

549,028

Deposit - Municipal Finance Authority (Note 3)

296,974

143,736

Land held for resale

285,557

327,257

16,101,222

13,189,724

1,431,385

987,557

Deferred revenue (Note 5)

256,081

233,928

Development cost charges (Note 6)

561,959

554,890

Receivables (Note 2)

Financial Liabilities Accounts payable and accrued liabilities (Note 4)

Reserve - Municipal Finance Authority (Note 3)

296,974

143,736

10,155,865

4,425,569

12,702,264

6,345,680

3,398,958

6,844,044

46,368,055

40,355,802

324,640

324,640

Inventory

85,207

87,118

Prepaid expenses

76,556

83,900

46,854,458

40,851,460

$ 50,253,416

$ 47,695,504

Long term debt (Note 7)

Net Financial Assets Non-Financial Assets Tangible capital assets (Note 8) Other non-financial assets

Net Assets (Note 9) Commitments and contingencies (Note 16)

Marilyn Rookes Director of Financial Services

The accompanying notes and schedule are an integral part of these financial statements.

6

District of Elkford Statement of Operations For the year ended December 31

2020 (Note 17)

2020

2019

Budget

Actual

Actual `

Revenues Property and other taxes (Note 13)

$

Less: collections for other governments Sale of services Revenue from own sources

8,132,812

$

8,058,254

$

7,748,864

(1,899,461)

(1,840,025)

(1,862,211)

6,233,351

6,218,229

5,886,653

1,238,260

1,445,684

1,199,587

348,069

481,996

562,682

MFA actuarial adjustment

-

2,232

-

Donations

-

5,000

43,832

2,393,309

1,003,787

Transfers from other governments (Note 14)

1,319,712

Gain on disposal of tangible capital assets

5,000

-

Gain (loss) on sale of land held for resale

20,000

(21,700)

56 14,212

9,164,392

10,524,750

8,710,809

1,699,784

1,504,933

1,342,931

Expenses (Note 15) General government services Protective services

865,135

829,856

912,024

1,553,294

1,764,367

1,622,621

Environmental health services

94,939

1,152,331

1,056,806

Public health services

14,482

11,570

11,818

830,028

472,548

631,328

2,128,753

2,231,233

2,307,102

7,186,415

7,966,838

7,884,630

1,977,977

2,557,912

826,179

45,839,731

47,695,504

46,869,325

47,817,708

$ 50,253,416

$ 47,695,504

Transportation services

Environmental development services Leisure services

Annual surplus Accumulated surplus, beginning of year Accumulated surplus, end of year

$

The accompanying notes and schedule are an integral part of these financial statements.

7

District of Elkford Statement of Change in Net Financial Assets 2020 (Note 17)

For the year ended December 31

Budget $

Annual surplus Acquisition of tangible capital assets

1,977,977

$

(9,656,800)

Amortization of tangible capital assets

-

Gain on disposal of tangible capital assets

2020

2019

Actual

Actual

2,557,912

$

826,179

(7,408,205)

(3,699,174)

1,395,952

1,308,699

(5,000)

-

Proceeds on disposal of tangible capital assets

-

-

Transfer of land held for resale to other non-financial assets

-

-

Disposition of inventory

-

1,911

(8,739)

Acquisition of prepaid expenses

-

7,344

(8,876)

Net change in net financial assets Net financial assets, beginning of year Net financial assets, end of year

$

(56) 1,538 (324,640)

(7,683,823)

(3,445,086)

(1,905,069)

8,749,113

6,844,044

8,749,113

1,065,290

$

3,398,958

$

6,844,044

The accompanying notes and schedule are an integral part of these financial statements.

8

District of Elkford Statement of Cash Flows For the year ended December 31 Operating transactions Annual surplus (deficit) Items not involving cash Amortization MFA actuarial adjustment Gain on disposal of tangible capital assets Loss on disposal of land held for resale Proceeds from sale of land held for resale Changes in non-cash operating balances Receivables Accounts payable and accrued liabilities Deferred revenue and development cost charges Unearned revenue Inventory Prepaid expenses

2019

2020

$

Capital transactions Acquisition of tangible capital assets Proceeds on disposal of tangible capital assets Acquisition of land held for resale Acquisition of tangible capital assets

2,557,912

$

826,179

1,395,952 (2,232) 21,700 20,000

1,308,699 (56) (14,212) 22,800

(482,627) 443,828 10,462 18,760 1,911 7,344

775,089 (255,817) 15,412 66,162 (8,739) (8,876)

3,993,010

2,726,641

(7,408,205) -

(3,699,174) 1,538 (285,557)

(7,408,205)

(3,983,193)

5,900,000 (167,471)

2,500,000 (74,431)

5,732,529

2,425,569

2,317,334

1,169,017

12,169,703

11,000,686

Financing transactions Proceeds from issuance of long-term debt Repayment of long-term debt

Net change in cash and cash equivalents Cash and cash equivalents, beginning of year

Cash and cash equivalents, end of year

$

14,487,037

$

12,169,703

The accompanying notes and schedule are an integral part of these financial statements.

9

District of Elkford Summary of Significant Accounting Policies December 31, 2020

Basis of Presentation

The financial statements of the District are the representations of management and are prepared in accordance with Canadian public sector accounting standards ("PSAS") for government entities using guidelines issued by the Public Sector Accounting Board ("PSAB") of CPA Canada.

Reporting Entity

The Reporting entity is comprised of all organizations and enterprises accountable for the administration of their financial affairs and resources to District Council and which are owned or controlled by the District of Elkford.

Basis of Accounting

The resources and operations of the District are segregated into various funds for accounting and financial reporting purposes, each being treated as a separate entity with responsibility for the stewardship of the assets allocated to it. The operating fund reports the general operations of the District. The capital fund is used principally to account for physical assets acquired and the respective obligations incurred which are to be financed from future revenue of the current fund operations. Reserve funds are generally created, pursuant to applicable statutes or by-laws, by appropriations from current fund operations. The use of these funds are restricted to the purposes for which the reserve funds are created. All interfund balances have been eliminated on the statement of financial position.

Within the framework of the fund basis of accounting, these financial statements have been prepared on an accrual basis. Under this basis, revenues are accounted for in the period in which transactions or events occurred that gave rise to the revenues.

Expenses are accounted for in the period the goods or services are acquired.

Land Held for Resale

Land held for resale is stated at lower of cost and market. Cost includes amounts for land acquisition and improvements to prepare the land for sale or servicing.

Vacation and Sick Pay

Vacation pay and accumulated sick leave is charged to expense in the year it is earned.

Revenue Recognition

Unrestricted grants and contributions are recognized as revenue in the year received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

Restricted grants or contributions received under funding agreements which relate to a subsequent period are recognized as revenue in the period in which the resources are used for the purpose or purposes specified. Funding received before this criterion has been met, is reported as deferred revenue on the statement of financial position until the period in which the specified purpose or related expenses are incurred.

10

District of Elkford Summary of Significant Accounting Policies December 31, 2020

Tangible Capital Assets Tangible capital assets are recorded at cost less accumulated amortization. Cost includes all costs directly attributable to acquisition or construction of the tangible capital asset including transportation costs, installation costs, design and engineering fees, legal fees and site preparation costs. Contributed tangible capital assets are recorded at fair value of the time of the donation, with a corresponding amount recorded as revenue. Amortization is recorded on a straight-line basis over the estimated life of the tangible capital asset as follows:

Land Land improvements Buildings and other structures Vehicles Equipment Transportation infrastructure Water infrastructure Sewer infrastructure

Not amortized 15 to 50 years 15 to 50 years 6 to 15 years 5 to 20 years 15 to 100 years 20 to 100 years 20 to 100 years

Financial Instruments

The District's financial instruments consist of cash and funds on deposit, accounts receivable and accounts payable. Unless otherwise noted, it is management's opinion that the District is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted.

Budget Figures

The budget figures are from the Five Year Financial Plan Bylaw to be adopted each year. They have been re-categorized to conform to PSAB Financial Statement Presentation.

Use of Estimates

The financial statements of the District have been prepared in accordance with generally accepted accounting principles in Canada. The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

11

District of Elkford Summary of Significant Accounting Policies December 31, 2020

Contaminated Sites

Under PS3260: Liability for Contaminated Sites governments are required to accrue a liability for the costs to remediate a contaminated site. Liabilities are recognized when an environmental standard exists, contamination exceeds the standard, the government has responsibility for remediation, future economic benefits will be given up and a reasonable estimate can be made.

Management has assessed its potential liabilities under PS3260 including sites that are no longer in productive use and sites which the District accepts responsibility.

There were no such sites that had contamination in excess of an environmental standard which required remediation at this time; therefore, no liability was recognized at December 31, 2020.

Government Transfers

Government transfers, which include legislative grants, are recognized in the financial statements in the period in which events giving rise to the transfers occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amount can be made.

12

District of Elkford Notes to Financial Statements December 31, 2020 1.

Cash and Investments 2019

2020 Unrestricted Internally restricted Externally restricted - DCC (Note 6) Internally restricted - Gas Tax Agreement

2.

$

7,128,938 5,191,176 561,959 1,604,964

$

14,487,037

$

5,856,460 4,332,454 554,890 1,425,899

$ 12,169,703

Receivables 2019

2020 Trade and other receivables Federal government - GST rebates Provincial government Carbon tax receivable Trade accounts Utility accounts Golf course loan Accrued receivables Accrued interest receivable

$

Property Taxes Current Arrears

$

28,050 1,456 28,968 104,400 52,022 142,500 533,880 6

$

37,461 4,390 31,968 13,836 79,443 150,000 91,300 6

891,282

408,404

99,547 40,825

92,032 48,592

140,372

140,624

1,031,654

$

549,028

13

District of Elkford Notes to Financial Statements December 31, 2020 3.

Deposit and Reserve - Municipal Finance Authority The District issues its debt instruments through the Municipal Finance Authority. As a condition of these borrowings, a portion of the debenture proceeds are withheld by the Municipal Finance Authority as a debt reserve fund. The District also executes demand notes in connection with each debenture whereby the Municipality may be required to loan certain amounts to the Municipal Finance Authority. The details of the cash deposits and demand notes at year end are as follows: 2019

2020 Demand notes

192,974

98,736

Cash deposits

104,000

45,000

General Operating Fund

4.

$

296,974

$

Accounts Payable and Accrued Liabilities 2019

2020 Trade accounts payable Accrued interest Insurance deductible allowance Holdbacks Tax rate liability Tax sale liability Due to cemetery care fund Source deductions Union dues WCB payable Employer health tax payable Accrued employee benefits Accrued payroll

5.

143,736

$

431,179 44,035 5,000 669,693 64,790 9,200 27,925 4,665 11,308 15,548 46,845 101,197

$

623,358 30,641 5,000 77,411 52,766 4,129 8,050 30,640 4,930 13,884 17,488 39,490 79,770

$

1,431,385

$

987,557

Deferred Revenue 2019

2020 Property taxes

$

Unearned revenue

80,399

$

156,922

175,682 $

256,081

77,006

$

233,928

14

District of Elkford Notes to Financial Statements December 31, 2020

6.

Development Cost Charges Development cost charges are collected when land held for resale is sold, or when building permits are issued for projects on land where development cost charges were not previously collected. Development cost charges are also collected on land that is sold by the Crown or other owners if development cost charges were not previously levied. These charges are reported as a liability until the development cost charges are used for future projects.

2019

2020 Balance, beginning of year Add:

$

Interest earned Development cost charge levies

Balance, end of year

$

554,890

$

541,262

7,069

12,380

-

1,248

561,959

$

554,890

15

District of Elkford Notes to Financial Statements December 31, 2020 7.

Long- term Debt The District issues debt instruments through the Municipal Finance Authority, pursuant to loan security issuing bylaws under the authority of section 179 of the Local Government Act, to finance certain capital expenditures. Debenture debt principal is disclosed net of sinking fund balances managed by the Municipal Finance Authority.

2019

2020 Debenture Debt Debenture debt is repayable to the British Columbia Municipal Finance Authority. Existing debentures mature in annual amounts to the year 2040 and interest is payable at rates ranging from .91% to 3.2% per annum.

$ 10,155,865

$

4,425,569

Future minimum principal payments and actuarial additions on the long-term debt for the next five years and thereafter, including actuarial adjustments, are due as follows: Total

General Fund Issue 152 Issue 149 2021 $ 248,928 $ 95,830 $ 2022 253,284 98,705 2023 257,717 101,667 2024 262,227 104,717 2025 266,816 107,858 Thereafter and actuarial 4,611,028 1,898,184 $ 5,900,000 $ 2,406,961 $

Issue 146 78,964 81,333 83,773 86,286 88,875

$ $ $ $ $

423,722 433,322 443,157 453,230 463,549

7,938,885 1,429,673 1,848,904 $ 10,155,865

16

District of Elkford Notes to Financial Statements December 31, 2020 8. Tangible Capital Assets 2020 Land Land Improvements Cost, beginning of year

$6,920,254

$ 7,076,996

Buildings & Structures

Vehicles

$ 24,340,044

$ 5,617,356

286,001

340,049

Equipment $ 2,622,604

Additions

-

-

Disposals

-

-

-

-

-

Transfers

-

-

-

-

-

Cost, end of year

6,920,254

-

Transportation Water Sewer Infrastructure Infrastructure Infrastructure $ 15,616,883 3,018,749

$ 5,979,149

$ 3,875,484

-

-

-

(41,539)

-

-

-

-

Work in Progress

Total

$ 2,691,969

$ 74,740,739

6,514,236

10,159,035

-

(41,539)

(2,709,290)

(2,709,290)

6,496,915

82,148,945

7,076,996

24,626,045

5,957,405

2,622,604

18,635,632

5,937,610

3,875,484

-

1,817,550

9,709,299

4,240,803

1,799,751

12,616,453

2,189,057

2,012,024

-

34,384,937

-

143,025

589,964

179,021

90,957

243,559

87,738

61,689

-

1,395,952

-

1,960,575

10,299,263

4,419,824

1,890,708

12,860,012

2,276,795

2,073,713

-

35,780,890

$ 5,116,421

$ 14,326,782

$ 1,537,581

731,896

$ 5,775,620

$ 3,660,815

$ 1,801,771

Accumulated amortization, beginning of year Amortization Accumulated amortization, end of year Net carrying amount, end of year

$6,920,254

$

$ 6,496,915

$ 46,368,055

17

District of Elkford Notes to Financial Statements December 31, 2020 8. Tangible Capital Assets 2019 Land Land Improvements Cost, beginning of year

$6,920,254

Buildings & Structures

$ 6,982,413

$ 21,560,428 2,779,616

Vehicles

Equipment

$ 5,609,571

$ 2,193,344

37,431

429,260

Transportation Water Sewer Infrastructure Infrastructure Infrastructure $ 15,616,883

-

94,583

Disposals

-

-

-

(29,646)

-

-

-

-

Transfers

-

-

-

-

-

-

-

-

6,920,254

1,689,143

$ 3,875,484

Additions

Cost, end of year

-

$ 4,290,006

-

7,076,996

24,340,044

5,617,356

2,622,604

15,616,883

5,979,149

3,875,484

Work in Progress

Total

$ 4,022,829

$ 71,071,211

3,137,899

8,167,932

-

(29,646)

(4,468,759)

(4,468,759)

2,691,969

74,740,739

Accumulated amortization, -

1,677,489

9,188,306

4,060,888

1,732,495

12,372,919

2,121,910

1,950,395

-

33,104,402

Amortization

beginning of year

-

140,062

520,993

208,079

67,255

243,534

67,147

61,629

-

1,308,699

Disposals

-

(28,164)

-

-

-

-

-

-

-

(28,164)

Accumulated amortization, end of year Net carrying amount, end of year

$6,920,254

1,817,551

9,709,299

4,240,803

$ 5,259,445

$ 14,630,745

$ 1,376,553

$

1,799,750

12,616,453

2,189,057

2,012,024

822,854

$ 3,000,430

$ 3,790,092

$ 1,863,460

$ 2,691,969

34,384,937 $ 40,355,802

18

District of Elkford Notes to Financial Statements December 31, 2020 9. Net Assets The District segregates its net assets in the following categories: 2019

2020 Equity in tangible capital assets Current funds Appropriated surplus - general Computer replacement Parks and playgrounds Greenspace and trails Unappropriated surplus General Water Sewer Reserve funds (Note 12)

$

$

36,212,190

$

35,930,233

40,589 2,961 203,826

40,589 2,961 203,826

2,889,850 765,012 2,732,651 7,406,337

2,119,619 584,183 2,403,843 6,410,250

50,253,416

$

47,695,504

10. Pension Liability The 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 the 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, 2019, the plan has about 213,000 active members and approximately 106,000 retired members. Active members include approximately 41,000 contributors from local governments.

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, 2018, indicated a $2,866 million funding surplus for basic pension benefits on a going concern basis. The District of Elkford paid $226,592 for employer contributions to the plan in fiscal 2020. The next valuation will be as at December 31, 2021 with results available in 2022. 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 individual employers participating in the plan.

11. Trust Funds The District holds funds in trust for specific purposes. As at the fiscal year end the funds held totaled $9,200 (2019 - $8,050). The assets and offsetting liabilities are not reflected in the District's financial statements.

19

District of Elkford Notes to Financial Statements December 31, 2020 12. Summary of Reserve Fund Positions 2019

2020 Land sales reserve Capital works equipment reserve Capital debt reserve Water parcel tax reserve Sewer parcel tax reserve Energy conservation reserve Tax Diversification reserve Financial Stabilization COVID-19 reserve Community works grant reserve

13. Property and other Taxes Real Property Taxes Municipal tax levy ( Parcel Taxes) Tax sharing agreement Collections for other governments Regional District of East Kootenay Ministry of Education Police (RCMP) Regional Hospital District BC Assessment Authority Municipal Finance Authority

Special Assessments, Grants in Lieu of Taxes % of revenue taxes Grants in lieu of taxes Federal governments and agencies Provincial governments and agencies

$

1,374,228 1,125,728 775,289 843,229 673,814 94,271 84,085 830,729 1,604,964

$

1,535,160 1,338,157 678,133 719,571 575,000 96,802 41,528 1,425,899

$

7,406,337

$

6,410,250

2020 Budget

2019 Actual

2020 Actual

$ 7,821,037 $ (1,831,071)

7,805,675 $ (1,831,072)

7,029,006 (1,374,553)

5,989,966

5,974,603

5,654,453

454,475 1,029,534 220,131 117,456 77,701 164

513,537 799,436 239,683 203,507 83,688 174

445,562 1,009,342 215,814 115,153 76,178 162

1,899,461

1,840,025

1,862,211

7,889,427

7,814,628

7,516,664

235,037

235,037

224,082

6,956 1,392

7,156 1,433

6,753 1,365

8,348

8,589

8,118

243,385 $ 8,132,812

232,200

243,626 $

8,058,254

$

7,748,864

20

District of Elkford Notes to Financial Statements December 31, 2020 2020 Budget

14. Transfers from other Governments Federal Government Conditional Canada Day Infrastructure Tree Canada - BC Hydro

$

Provincial Government Unconditional Small communities and equalization payment COVID-19 Safe Restart Grant Conditional Infrastructure CBT/RDEK Grant Provincial Emergency Program Other Local Governments Conditional UBCM/LGMA (MATI) Community Tourism Community works fund Fuel Management - UBCM Misc Grants

$

1,250 -

2019 Actual

2020 Actual

$

2,000 -

$

1,250 5,180 2,800

1,250

2,000

9,230

393,994

399,113 938,000

393,994

580,239 -

500,000 344,030 -

115,158 11,903

974,233

2,181,143

521,055

15,500 10,000 166,606 100,123 2,000

(7,598) 10,000 160,363 34,909 12,492

15,000 10,000 326,922 84,516 37,064

294,229

210,166

473,502

1,269,712

$ 2,393,309

$ 1,003,787

21

District of Elkford Notes to Financial Statements December 31, 2020 15. Expenses by Object Advertising and promotion Amortization

2019

2020 $

25,487

$

33,627

1,395,952

1,308,698

Contract services

526,885

496,712

Contributions to organizations

119,797

115,285

Debt servicing and bank charges

363,216

179,363

Insurance

162,588

136,309

41,343

43,890

529,974

640,465

80,593

163,154

Property and equipment costs

609,458

560,369

Telephone and utilities

448,445

475,878

3,830,570

3,805,311

$ 8,134,308

$ 7,959,061

Legal and audit Materials, supplies, equipment, printing Memberships, subscriptions, education and training

Wages and benefits

22

District of Elkford Notes to Financial Statements December 31, 2020 16. Commitments and Contingencies a) Contingency for Pension Plan Contributions The District is required to match employee contributions to the Municipal Pension Plan when an employee decides to purchase enrolment arrears for service periods prior to January 1, 1988. The future cost for this obligation is unknown and these amounts, if any, will be expensed as payroll costs in future years, when the District pays these costs. b) Other Contingencies In 2006, a claim was filed in the Supreme Court of British Columbia against the District of Elkford, and other defendants. The claim alleges that the District and the other defendants were negligent with respect to the development of property. As few particulars of this claim are currently known and the ultimate outcome of the court case is uncertain, the District is unable to determine the financial impact on the Municipality at this time, and as such, no contingency has been established. In 2020, no further action has been taken, but the case has not yet been dropped. MIA does not insure the loss, if any. c) Service Contracts The District has several service contracts. The estimated aggregate minimum payments to expiry for the contracts is $11,686 ($13,379 in 2021, $13,379 in 2022, $10,948 in 2023, $8,234 in 2024 and $2,403 in 2025).

23

District of Elkford Notes to Financial Statements December 31, 2020 17.

Budget Figures The District's Financial Plan (Budget) Bylaw adopted by Council on April 14, 2020 was not prepared on a basis consistent with that used to report actual results (Public Sector Accounting Standards). The budget was prepared on a modified accrual basis while Public Sector Accounting Standards now require a full accrual basis. The budget figures anticipated use of surpluses accumulated in previous years to reduce current year expenditures in excess of current year revenues at an amount of $7,311,059. As a result, the budget figures presented in the statements of operations and changes in net financial assets represent the Financial Plan adopted by Council on April 14, 2020 with adjustments as follows:

2020 Financial Plan (Budget) Bylaw surplus for the year

$

-

Add: Capital expenditures

9,506,800

Debt repayment

167,470

Less: Reserve transfers

(1,369,397)

Accumulated surplus transfers

(7,311,059)

Budget surplus per statement of operations

$

993,814

24

District of Elkford Notes to Financial Statements December 31, 2020 18. Segmented Information The District of Elkford provides a wide range of services to its citizens, and these services are accounted for within three funds: General, Water and Sewer. The General Fund is further comprised of seven service components which are as follows: General Government Services, Protective Services, Transportation Services, Environmental Health Services (Solid Waste), Public Health Services, Environmental Development Services, and Leisure Services. These service components have been separately disclosed in the segmented information that is presented in the schedule of segment disclosure.

General Government Services includes the activities of Council, the overall administration of the District, the financial management of the District and the computer support provided for all departments. The Administration and Finance employees also provide support services for building inspection, bylaw enforcement, and zoning / planning services.

Protective Services is comprised of Fire Protection, Emergency Measures, Building Inspection, Bylaw Enforcement, and Animal and Pest Control. Fire Protection provides fire prevention, suppression and investigation services for the District. The department is led by a paid fire chief and deputy fire chief, and a complement of paid-on-call (volunteer) firefighters. The emergency measures function coordinates the District's involvement with the Emergency Management as legislated by the Province, and the coordination of emergency plans and actions related to the District of Elkford. The Emergency Social Services and the Ground Search and Rescue programs are coordinated by volunteers, with the District's financial support. This function is also supported by the Regional District of East Kootenay (RDEK), who have an emergency coordinator for the Elk Valley. The District has one employee who provides building inspection and a contract for bylaw enforcement services. The District also has a contract for mosquito control services.

Transportation Services include a variety of functions that support the network of roads throughout the Municipality. In addition to street cleaning, street maintenance and snow removal, these functions also include sidewalks, water runoff and drainage, street lighting and signage. Engineering services that support planning functions for the department are contracted to external engineering firms. District employees of the Public Works Department coordinate and perform the majority of the activities. In summarizing the cost of transportation services, the administration and equipment costs are allocated to the specific tasks (street lighting etc).

Environmental Health Services (Solid Waste) is for the collection of solid waste in Elkford. The transfer station is a function of the RDEK and the fees and expenditures are included in the collection of taxes for other governments. In 2008, the RDEK took over the function of recycling within the District, and this cost is now included in the collection of taxes for other governments.

Public Health Services is for the cemetery function which includes not only interment, but also maintaining the cemetery grounds. Operation and administration costs are dependent upon the number of interments performed.

25

District of Elkford Notes to Financial Statements December 31, 2020 18. Segmented Information (continued) Environmental Development Services encompass a broad range of services from land use planning and zoning, economic development, tourism services, to community enhancement. Based on information from the Business Vitality Initiative, and the Strategic Planning Session of Council, the District anticipates significant plans for community development in the coming years.

Leisure Services incorporates a broad range of services and activities which include the Aquatic and Library Complex, the Recreation Centre (Ice Rink and Curling), Community Conference Centre, Parks, Trails, Playgrounds and all the programs, community group support and the general administration that supports all the activities within Leisure Services.

The Water Fund incorporates the management of the collection and distribution of potable water to property within the District.

The Sewer Fund incorporates the management of the collection and treatment of waste water from property within the District. The District provides primary treatment to effluent through the use of chemical treatment and settling ponds.

For each reported segment, the expenses are allocated based on the expenses by object as found in Note 15 of these financial statements. The largest source of District revenue is property taxation, and this revenue has been allocated based on a percentage allocation according to the budget for that year.

Segments not receiving property tax allocation are Environmental Health Services (Solid Waste), and the Water and Sewer Funds. These three segments are funded by sales of service (user fees). Other revenues that can be directly attributable to a segment is allocated in this manner, with all other revenues allocated to general government.

19. Global Pandemic As the impacts of COVID-19 continue, there could be further impact on the District, its citizens, employees, suppliers and other third party business associates that could impact the timing and amounts realized on the District's assets and future ability to deliver services and projects. At this time, the full potential impact of COVID-19 on the District is not known. Although the disruption from the virus is expected to be temporary, given the dynamic nature of these circumstances, the duration of disruption and the related financial impact cannot be reasonably estimated at this time. The District's ability to continue delivering non-essential services and employ related staff, will depend on the legislative mandates from the various levels of government. The District will continue to focus on collecting receivables, managing expenditures, and leveraging existing reserves and available credit facilities to ensure it is able to continue providing essential services to its citizens.

26

District of Elkford Schedule of Segment Disclosure Schedule A-1 December 31, 2020 General Fund

General Government

Protective Services

Transportation Services

Other Funds

Environmental Public Environmental Health Health Development Services Services Services

Leisure Services

Water Fund

Sewer Fund

Consolidated

Revenues Property and other taxes Sale of services Revenue from own sources Donations Debt surplus repayments Transfers from other governments Loss on disposal of tangible capital assets Gain on sale of land held for resale

$

1,146,181 $ 46,013 252,955 5,000 1,110,855 (21,700) 2,539,304

814,867 75,990 434,022 -

$

1,324,879

1,527,766 12,226 2,268 500,000 -

$

2,042,260

167,360 -

$ 13,762 1,336 -

167,360

15,098

$

694,064 35,276 344,030 -

$ 1,816,474 98,019 4,402 -

1,073,370

1,918,895

$

114,010 561,275 -

$

675,285

91,104 559,455 -

$

650,559

6,218,229 1,445,684 366,489 5,000 2,393,309 (21,700) 10,407,011

Expenses Advertising and promotion

19,349

Amortization

79,914

-

Community events

-

-

Contract services

83,972

53,103

Contributions to organizations

-

11,205

Council expenses

-

-

363,216

Debt servicing and finance charges

-

137,444

-

354,734

140,012

-

-

5,811

1,903

327 420,350

-

-

124,887

25,487

136,708

1,395,952

-

-

-

-

-

-

-

-

97,449

49,037

57,473

64,831

526,885

-

-

-

21,500

87,092

-

-

119,797

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

363,216 162,588

121,020

-

Insurance

26,190

14,800

30,942

2,193

-

75,207

7,189

5,717

Legal and audit

37,608

-

-

-

-

3,735

-

-

-

41,343

Materials, supplies, equipment, printing

75,011

88,308

50,557

909

-

38,280

276,909

-

-

529,974

Memberships, subscriptions, education and training

11,212

4,821

5,382

-

-

23,555

11,477

20,194

3,952

80,593

-

-

-

-

-

-

-

-

-

45,212

36,671

22,231

-

-

97,628

93,507

26,436

Miscellaneous and adjustments Property and equipment costs Telephone and utilities Wages and benefits Eliminations

28,106

28,456

93,403

-

-

922,614

430,245

840,556

72,759

9,317

24,803

(20,000) 1,672,404

Excess (Deficiency) of Revenues over Expenses

$

287,773

350

-

866,900

(20,000)

829,856 $

495,023

-

1,764,367 $

277,893

238,104 $

282,217

-

-

11,570

(70,744) $ 3,528

$

609,458

164,148

113,764

20,568

448,445

1,049,058

134,661

89,143

3,830,570

-

(4,803)

472,547

2,231,233

546,872

600,823

$ (312,338) $

128,413

20,000

-

367,355 $

283,204

8,134,308 $

2,272,703

27

District of Elkford Schedule of Segment Disclosure Schedule A-2 December 31, 2019

General Fund

General Government

Protective Transportation Services Services

Other Funds

Environmental Public Environmental Health Health Development Services Services Services

Leisure Services

Water Fund

Sewer Fund

Consolidated

Revenues Property and other taxes Sale of services

$ 1,082,956 44,717

Revenue from own sources Donations Transfers from other governments Loss on disposal of tangible capital assets Gain on sale of land held for resale

$

769,918 -

$

1,443,492 6,352

345,032 408,175 -

215,056 491,094 -

2,594 5,180 56 14,212

1,880,880

1,476,068

1,471,886

$

152,169

$ 13,003 -

152,169

$

655,779 -

$ 1,716,275 171,123

-

15,696 15,696 -

28,136 83,642 -

13,003

687,171

1,999,176

-

11,521

1,903

-

$

114,075 496,949 611,024

$

91,156 328,277

$ 5,886,653 1,199,587

-

562,682 43,832 1,003,787 56 14,212

419,433

8,710,809

Expenses Advertising and promotion

21,118

151

Amortization

14,505

149,879

351,271

137,769

837 412,427

104,296

-

33,627

136,648

1,308,698

Community events

-

-

-

-

-

1,920

-

-

-

Contract services

58,418

50,026

39,336

-

-

177,952

55,506

92,524

22,950

496,712

-

115,285

Contributions to organizations

1,920

12,427

-

-

-

17,890

84,968

-

-

39

-

-

-

-

-

-

-

-

39

179,363

-

-

-

-

-

-

-

-

179,363

Insurance

24,148

13,696

28,671

2,033

-

55,143

6,642

5,760

136,309

Legal and audit

37,581

-

-

-

6,309

-

-

-

43,890

Materials, supplies, equipment, printing

93,181

135,067

61,573

Memberships, subscriptions, education and training

81,606

23,473

5,790

-

-

-

-

Council expenses Debt servicing and finance charges

Miscellaneous and adjustments

176

Property and equipment costs

31,555

Telephone and utilities Wages and benefits Eliminations

63,481

828

22,217

58

76,179

271,444

-

-

638,330

-

13,644

11,573

14,016

13,052

163,154

-

-

-

-

-

174

-

71,697

55,764

34,586

188,401

115,182

17,595

475,878

1,155,106

120,155

65,289

3,805,311

25,577

32,025

97,098

-

-

414,159

777,987

67,140

9,467

(20,000)

$

-

870,095

17,640

1,417,362 Excess (Deficiency) of Revenues over Expenses

280,895

216

463,518

(20,000)

912,024 $

564,044

1,622,621 $

(150,735) $

229,987 (77,818) $

325,913

-

-

11,818 1,185

$

2,360

20,000

631,328

2,307,102

-

510,939

315,880

55,843

$ (307,926) $

100,085

$ 103,553

176 560,369

7,959,061 $

751,748

28

District of Elkford Schedule of COVID-19 Safe Restart Grant Schedule B December 31, 2020

Covid-19 Safe Restart Grant Reporting Safe Restart Grant received November 2020 Eligible costs incurred: Computer and technology costs to improve connectivity and virtual communications Revenue shortfalls General government services Protective services Engineering and public works Recreation, parks and cultural Total eligible costs incurred Balance, December 31, 2020

938,000 2,549 91,696 2,909 1,112 1,372 7,634

107,271 830,729

29

ADDRESS: 744 Fording Drive, Elkford, B.C. V0B 1H0

PHONE: +1.250.865.4000 FAX: +1.250.865.4001 EMAIL: info@elkford.ca www.facebook.com/district.elkford www.instagram.com/districtofelkford

www.elkford.ca

2020 Annual Report: Page 54