Annual report 2016 final

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Northern Rockies Regional Municipality

2016 Annual Report

For the year ended December 31, 2016


Northern Rockies Regional Municipality’s Vision The Northern Rockies is a region that balances economic development and the integrity of the natural environment. We will be a self-reliant and healthy region. We will proudly embrace life in a unique northern community and create innovative solutions that enhance our quality of place. Our communities will be well-planned, safe and welcoming, providing diverse choices and ample opportunities for employment, education, recreation, housing and health and wellness services.

Cover Photo Courtesy of Heather Cobbett

Northern Rockies Regional Municipality 2016 Annual Report

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Contents

Northern Rockies Regional Council ......................................................................................................................... 4 Message from the Mayor .........................................................................................................................................5 Introduction ............................................................................................................................................................. 6 Major Services .......................................................................................................................................................... 8 2016 Highlights ......................................................................................................................................................11 2017 Objectives .....................................................................................................................................................16 Northern Rockies Regional Municipality Financial Information .............................................................................22 Northern Rockies Regional Municipality Audited Financial Statements ................................................................25 Statement of Permissive Property Tax Exemptions ..............................................................................................44 Contacts ................................................................................................................................................................ 45

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Northern Rockies Regional Municipality 2016 Annual Report


Northern Rockies Regional Council

Mayor Bill Streeper

Regional Councillor Kyle Andrews

Regional Councillor Laurie Dolan

Regional Councillor Lorraine Gerwing

Regional Councillor Doug McKee

Regional Councillor Todd Osbourne

Regional Councillor Danny Soles

It is the role of Council to act as the governing body of the municipality, and to represent the best interests of the citizens of the municipality as a whole when making decisions necessary for the successful operation of the municipality. Powers are exercised through resolutions or bylaws passed in open meetings. The Council is a continuing body with changes in its membership by election or appointment; as a collective body, members cannot make binding decisions independently, unless express authority has been granted or legislated. Pursuant to section 111 of the Community Charter, there were no Council members disqualified in 2016.

Northern Rockies Regional Municipality 2016 Annual Report

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Message from the Mayor I am pleased to present the 2016 Annual Report for the Northern Rockies Regional Municipality.

Delaying growth-driven projects enables the NRRM to address some high-priority renewal activities earlier in the planning period.

2016 was the second year of the Infrastructure Development Contribution Agreement (IDCA). The Province of British Columbia issued the $10 million payment that is crucial to the development and maintenance of municipal infrastructure in years to come.

Though the economic situation continues to negatively affect us, Council is investigating all possible avenues of development and looking for operational efficiencies.

Ambitious projects that form the municipality’s one, five and twenty-year plans will be undertaken with minimal effect on property taxes due to the IDCA’s infrastructure-oriented grant funding. Many growth-related projects have also been deferred by one to five years, reflecting current economic conditions and a pause in the longer-term growth trend in the NRRM.

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Your Council and I continue to be committed to providing good governance to deliver quality, affordable services for residents and businesses, in a way that acts on and upholds community values.

Bill Streeper Mayor, Northern Rockies Regional Municipality

Northern Rockies Regional Municipality 2016 Annual Report


The NRRM Our local government model is unique in BC and is almost impossible to compare with others. When looking at our unique characteristics other than our single local government model, the first point is our vast physical size The Northern Rockies Regional Municipality is large – 85,148 km2 to be exact which is 10% of the Province of BC or 2.7 times the size of Vancouver Island.

Northern Rockies Regional Municipality

Most communities within the Province are served by two local governments: the municipal government, and the regional or special purpose district. Municipal local governments may take on locally based services such as fire protection and city streets while regional districts will most often take on regionally based services where cooperation between cities and unincorporated areas is desired, such as solid waste and regional parks & recreation. Instead of two local governments officially providing services to in-town and rural residents, all services, responsibilities, and accountabilities fall to one local government. The first of its kind in BC, the Northern Rockies Regional Municipality was formally incorporated on February 6th, 2009. The creation of this unified entity means that taxes from the resource-producing basins such as the Horn River and Liard now flow to the local government rather than the province, enabling local decision-making and input into spending. Years of effort went into the negotiation of a tax-sharing agreement along the lines of the Fair Share Memorandum of Understanding (an annual grant in lieu of access to the industrial tax base) signed in the Peace region in 2005, and renewed in 2015.

Northern Rockies Regional Municipality 2016 Annual Report

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The NRRM (Continued from page 6)

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

April 11,2013—Mayor Streeper and MLA Pimm sign the Infrastructure Development Contribution Agreement (IDCA)

In April 2013, the Northern Rockies signed the Infrastructure Development Contribution Agreement (IDCA) with the Province of British Columbia, to serve a “mutual interest in seeing the natural gas industry in the NRRM region developed for the benefit of all British Columbians.”1 The terms of this landmark agreement are founded on the implementation of a cornerstone Multi-Year Infrastructure Development (MYID) plan based on the maintenance and development of the NRRM as a industrial service centre over the twenty-year term of the contract.

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Northern Rockies Regional Municipality 2016 Annual Report


Major Services

Wastewater Treatment Lagoon—June 2016

2016 Regional Council Meeting in Toad River

Public Works is responsible for the installation and maintenance of Urban and Rural Roads and Grounds, Drainage Systems, Water Treatment and Distribution, Wastewater Treatment and Collection, Solid Waste Collection and Operations, Cemetery operations, Equipment Maintenance and provision of common community services. Public Works performs many day-to-day services including core activities such as snow clearing and hauling for streets and sidewalks, sanding, street sweeping, boulevard maintenance, provision of drinking water, the collection of wastewater, the provision of solid waste collection to urban residential areas and up and down the highway, as well as trouble shooting water, sewer, drainage and storm issues.

Regional Airport is responsible for the daily operations of the airport and maintains the airfield, buildings, and equipment to provide safe and efficient aviation facilities for the citizens and visitors to the community. All activities are in compliance with the requirements of all Federal and Provincial regulatory authorities to deliver safe, efficient and reliable operational aviation services. Fire Rescue and Bylaw Enforcement provides 24-hour fire and emergency rescue services to varying response areas throughout the Regional Municipality. Additionally, Fire Rescue provides fire prevention, fire inspection, public education, public assistance, and bylaw enforcement services. They respond to structure, vehicular and wildland/urban

Northern Rockies Regional Municipality 2016 Annual Report

Visit from the Honourable Steve Thomson, Minister of Forests, Lands and Natural Resource Operations

interface fires as well as providing First Responder service and assistance to BC Ambulance Service.

Technological Services provides a common point of contact for all technology issues and is tasked with providing support to all areas of the municipality’s operations. The department is also responsible for the municipality’s Electrical Operating Permits and ensuring compliance with the Electrical Code. This department is also responsible for Mapping & GIS (Geographic Information System), Electrical Automation, Instrumentation, Network/Data Support, Asset Management, Vibration Analysis, Technology Management and Data Collection /Analysis.

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Major Services Corporate Services is the information hub of the Municipality that controls, prepares and distributes data. Compliance with regulatory requirements is assured through coordination of records management, agenda preparation, recording of official minutes, preparing and certifying bylaws, and executing all legal documentation on behalf of the Municipality. Corporate Services acts on Council decisions and provides up-to-date procedural, policy and legislative direction to the entire organization This department is also responsible for Bylaw Notice Complaint Screening as well as freedom of information requests. Finance is responsible for accounting, financial planning/statements and the safekeeping of the Municipality’s funds and securities. They oversee the investment of funds and ensure that expenditures are made in accordance with Council policy, applicable bylaws, the current

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municipal budget and relevant legislation. The department’s cash management function includes payroll, accounts payable/receivable and ongoing financial reporting. Recreation, Parks and Facilities improves the quality of life of residents in the Northern Rockies Regional Municipality by developing, operating and maintaining high quality facilities, parks, sport fields and regional parks. They also design recreation programming and host special events to foster inclusiveness, accessibility and wellness. The department also preserves the buildings, facilities and parks of the Municipality Playschool and Regional Parks and Campgrounds.

Community Planning promotes sound planning and development of our community through the provision of information and service to Regional Council, the development community and the general public. This also includes the preparation and administration of land use regulations and bylaws through building and development permitting. Economic Development and Tourism focuses on strengthening the economy across all sectors of Fort Nelson and the outlying communities of the Northern Rockies Regional Municipality. Engaging in activities to promote economic diversification and attract and retain business, they seek to develop core amenities including medical services and educational opportunities.

Northern Rockies Regional Municipality 2016 Annual Report


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

                 

Tier 2 regional airport with regularly scheduled flights Full service Fire Rescue department Policing Phoenix Theatre Golf Course Museum Public Library Year round Visitor Information Centre (NRRM/Chamber of Commerce) Municipal Office: Treasury, Administration, Planning, Community Development 11 landfills 60 km of urban roads 150 km of rural roads 22.3 km Sidewalks (varying types and widths) Municipal Streetlights 262 Municipal owned, 325 Hydro Leased 2,000 cubic metres winter sand annual average Water Production annual average 1,000,000 cubic metres (= 2 Billion 500 ml bottles) Treated Wastewater annual average 930,000 m3 65 vehicle Fleet (pick-ups, heavy mobile, specialized)

Northern Rockies Regional Municipality 2016 Annual Report

                  

85 km of Water Transmission and Distribution 8 Water Distribution Pumphouses 4 Water Pressure Reducing Stations 5 Treated Water Reservoirs 349 Hydrants and Valves 500 Mainline Valves 1,457 Industrial-Commercial-Institutional (ICI) Water Service Connections 1,412 Residential Service Connections 45 km of Sewer Collection Mains 1,300 Wastewater Service Connections 493 Man-holes Rural Roads Maintenance Contract Solid Waste Operations and Collections Contracts Residential Curb-side Collection Contract FNFN Water Maintenance Contract Regional Recreation Centre with 2 ice surfaces, indoor skating pond, Curling rink and Aquatic Centre Recreation Programs Municipal and Regional parks and two campgrounds 4.7 km of paved recreation trails

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2016 Highlights Transportation

Rural Roads In 2014, the NRRM assumed responsibility for the rural roads located in the Regional Municipality as a condition of its incorporation in 2009. The 2013 RAMP analysis recommended an annual investment of $500,000 to maintain the desired level of service.

Ensuring a reasonable standard for municipal roads is essential for safe and convenient traffic movement for residents as well as industrial users. Urban Roads & Sidewalks Ongoing investments in the NRRM’s paved road system within Fort Nelson is necessary to sustain established service levels. In 2009, $4-5 million per year was spent upgrading urban roads. A detailed analysis of the road system was completed in 2013 by Allnorth Consultants Ltd. (Road Asset Management Plan—RAMP), and using recommendations that were set out, an annual investment was reestablished at $1.7 million to ensure that roads and sidewalks are maintained to existing standards sustainably developed as future needs arise.

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Major projects in the 2016 capital program included surface renewal of asphalt roads, street lighting enhancements, and development of the NRRM’s Pedestrian Connectivity Network, including the installation of several new pathways in Fort Nelson.

Improvements to NRRM’s Rural Road Network in 2016 included renewal of gravel roads, and completion of a crib culvert at Parker Creek.

Northern Rockies Regional Municipality 2016 Annual Report


2016 Highlights Buildings & Facilities

Municipal Square Renovations The Municipal Square is a large multipurpose facility that includes the Phoenix Theatre, the public library, preschool facilities and seniors housing. Only minor works were undertaken on the facility in 2016.

A Building and Facilities Asset Management Plan was completed in 2015 identifying the need for replacement or renewal of the functionally deficient administration facilities. NRRM has allocated a portion of capital for renewal of existing municipal-owned buildings to ensure buildings continue to meet established levels of service.

Northern Rockies Regional Recreation Centre The reconstruction and expansion of the Northern Rockies Regional Recreation Centre has been ongoing since 2012 after the structural failure of the previous facility. The first two phases have been completed including an arena, second ice surface, meeting rooms and reconstruction of the curling rink. In 2014 the first phase (East lot) of the parking facilities was completed. Construction of the NRRM Recreation Complex was completed in 2016, with the completion of the Recreation Centre West Parking Lot, and installation of accessibility fixtures to centre doors.

Northern Rockies Regional Municipality 2016 Annual Report

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2016 Highlights Buildings & Facilities continued

Public Works Yard / Fire Hall An assessment of the existing public works and fire hall facilities (contained in the same structure) indicated the need for upgrading to replace roof structures and other minor improvements consistent with good asset management practices. Building renewal in 2016 included minor renewal of the Public Works Maintenance Shop.

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Water

The water system that serves Fort Nelson was developed in the 1970s with many updates over the years to increase capacity and upgrade the system. There remains deficiencies that will require upgrading to meet existing and future demands relating to supply, treatment and distribution components of the system. Water Treatment Plant Projects in 2016 included renewal of Water Treatment Plant electrical components, replacement of the Upper Reservoir Feeder main, and renewal of the upper pump house mechanical system replacement. The capital program also included designing an expansion of the Rural Water West Reservoir, to enhance ability to meet demand during peak summer conditions.

Water Treatment Plant Interior

Solid Waste The NRRM operates the only landfill in the region, which serves Fort Nelson and outlying areas, including the Fort Nelson First Nation. The 2016 capital program for NRRM’s Solid Waste System included the development of a plan for solid waste diversion and Composting, along with the development of a Solid Waste Management Plan (currently awaiting Provincial approval) and expansion work of the NRRM’s landfill.

Northern Rockies Regional Municipality 2016 Annual Report


2016 Highlights Stormwater Drainage Stormwater drainage, like Water and Sanitary Sewer, is an essential service that protects community safety and health and reduces the risk of damage to both public and private property.

fulsome assessment and video inspection of pipe condition. The overall objective of the Master Plan is to assess the drainage system for vulnerability and prioritize renewal and upgrades based on current and future needs. Significant projects in 2016 include the 49th St drainage upgrades and the Liard St underground storm sewer renewal. Sanitary Sewer

Alaska Highway Drainage

NRRM initiated a structural rehabilitation program in 2016 for culverts and storm drains using the Water, Sewer and Drainage Asset Management Plan based on its video inspection program, age and material, and based on capacity-related risks identified through the NRRM Drainage Master Plan. The Condition of the NRRM’s drainage infrastructure was also reviewed via a

Construction on this project will begin in 2017. The headworks broke ground in the summer of 2016, will be complete be commissioned in the summer of 2017. In addition, pipe bursting was completed in a right-of-way located between McLeod Rd and Sunset Drive which replaced a sewer main without excavation and minimal impacts to residents and adjacent infrastructure.

The sanitary sewer system serving Fort Nelson also dates from the 1970s. Major upgrading is required to address deficiencies and to accommodate future growth. NRRM’s 2016 capital program is comprised of two major projects: sewer outfall relocation and construction of the Wastewater Treatment Plant Headworks. The sewer outfall relocation project includes redirecting treated effluent to a new outfall in the Muskwa River.

Northern Rockies Regional Municipality 2016 Annual Report

Wastewater Treatment Plant Lagoons

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2016 Highlights Airport The Northern Rockies Regional Airport (NRRA) is a vital facility that supports the air transportation needs of the community. Major improvements are required to address issues such as improving the aprons, providing perimeter fencing and runway lighting, in addition to improving the runway. Proposed improvements are extensive and entail a capital cost of $82.45 million over the next twenty years, a proportion of which may be funded through federal Airport Capital Assistance Program (ACAP) funding intended to offset these large expenses now incurred by municipalities. All estimates are based on the NRRA Master Plan prepared by EBA Consultants Ltd. in 2013 and subsequent assessments by KWL as part of the asset management planning process.

Aerial view of Northern Rockies Regional Airport (NRRA)

Capital projects completed at the regional airport in 2016 include ACAP funded renewals of airfield lighting and Apron 1. Other projects completed included minor mechanical improvements to the Airport Maintenance Building and Terminal. Renewal of Airport water and wastewater assets included the design of upgrades to the Airport Water Treatment Plant, connector main and pumps.

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Northern Rockies Regional Municipality 2016 Annual Report


2017 Objectives Regional Council’s investment priorities for 2017 are focused on the renewal of existing infrastructure to establish strong foundations, while positioning groundwork for growth. In anticipation of a positive LNG outcome, Regional Council prioritizes infrastructure as the underpinning that will accommodate rapid growth in employment, population and housing needs beyond 2017 and serve the needs of the transient workforce and the specific demands of industry. The work that is being undertaken is being guided by an extensive Asset Management System (AMS) using specific criteria to prioritize each project.

Roads & Transportation

Renewal and upgrading of the NRRM’s road system is critical to maintaining an acceptable level of service for existing and future residents. The safety and convenience of NRRM’s road system is essential for the functioning and growth of the community as a service centre. Engineering assessments carried out in during the asset management planning process have indicated that an investment of $1.5 M per year is required to ensure that the paved road system continues to provide an acceptable level of service. A further $500,000 will need to be invested annually to ensure that the gravel road system also delivers an acceptable level of service.

Pedestrian Connectivity

Indoor recreation facilities are vital to enhancing community health and quality of life in communities (particularly those located in the north). Industry has been clear that high quality recreation facilities and programs are very important to attracting and retaining workers and their families in the community. This has been an important factor in recent oil and gas company decisions to locate their workforces in communities providing excellent recreational opportunities and facilities. Continued development of the trail and sidewalk system in Fort Nelson in 2017 will promote active lifestyles, and reduce demands on road and parking infrastructure. Improvements to trail and sidewalk infrastructure will build on the recommendations presented in the NRRM Pedestrian Connectivity Strategy report completed in 2015.

Buildings & Facilities

Assessments of existing municipal buildings completed in the 2015 Buildings and Facilities Asset Management Plan have identified various system renewal needs for 2017, including improvements to the aging public works/fire hall building and an allowance for minor renewal of other facilities. Sustainable renewal budgets and capital project priorities for all municipal facilities for the next twenty years will be included in updates to the five (Capital Expenditure Plan – CEP) and twenty-year Multi-Year Infrastructure Development - MYID) capital planning documents based on the asset management plan. NRRM is in the process of developing a Building and Facilities Master Plan to dictate capital program updates in future years.

Northern Rockies Regional Municipality 2016 Annual Report

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2017 Objectives

Airport

The majority of the workforce required for the development of the natural gas industry will continue to commute by air to NRRM. The NRRA is therefore a vital facility to enable industry to expand its fly in fly out program and secure its labour supply both now and in the future and priority has been given to the renewal and upgrading of the Northern Rockies Regional Airport (NRRA). Industry has been clear that the upgrading and expansion of the NRRA is fundamental to future investments and development of the three major resource basins in the NRRM.

Sanitary Sewer

The municipal wastewater system is an essential service to Fort Nelson, which serves as the economic hub of the NRRM. The outfall is currently discharging to a river channel with no flow as a result of natural erosion of the Muskwa River, and the NRRM is required (by the Ministry of Environment) to relocate this outfall. In 2016 NRRM began the expansion and relocation of the treated wastewater outfall and prepared to undertake improvements to the wastewater treatment plant, including the construction of headworks and provisions to prevent outfall erosion. Additional wastewater capacity is also necessary to service growth; currently, volumes are constrained by the wastewater outfall, resulting in poor performance after storms and other demands on the system. The wastewater renewal program will continue in 2017 enabling the NRRM to provide an acceptable level of service in the future.

Stormwater Drainage

The NRRM has completed a Stormwater Drainage Master Plan for the north and south side of the Alaska Highway, resulting in a program designed to identify and prioritize risks to municipal infrastructure and private property. Liard Street Storm Renewal will be completed in 2017, along with asphalt adjacent drainage up-grades and some re-lining to our underground storm lines. Further work will be done with the Drainage Master Plan to assess those areas where stormwater infrastructure was identified as insufficient.

Landfill

In addition to new cell construction, other minor repairs will be made to landfill buildings and fences. In 2016, the NRRM submitted a Solid Waste Management Plan to the Ministry of Environment for approval. This plan will guide future waste diversion and composting initiatives.

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Northern Rockies Regional Municipality 2016 Annual Report


2017 Objectives Public Works Major Maintenance/Project: General project engineering - roads Gravel sourcing/production Asset management Alaska Highway Corridor improvements Drainage master plan Gravel - RAMP 42nd Intersection Renewal (MoTI) Capital Asset: Streetlight enhancements RAMP Asphalt Roads Pedestrian connectivity strategy Storm & drainage renewal Mobile Equipment Replacement Capital Asset: PW Lease-Excavator/bucket Water Utility Major Maintenance/Project: General Project Engineering - Water WTP Efficiency & Capacity Improvements (CWWF) Water/sewer rate/regulation bylaw update Capital Asset: Upper pumphouse mechanical & electrical renewal Upper reservoir feeder renewal replacement Rural Water West reservoir upgrades Filtration system renewal-WTP Raw water pumps

Northern Rockies Regional Municipality 2016 Annual Report

Funded by: Proposed Total Budget Carryover Reserve Operations Grants Borrowing Funding 130,000 500,000 250,000 25,000 30,000 500,000 500,000 1,935,000 85,000 1,700,000 378,000 1,790,000 3,953,000

5,600 5,600

55,000 25,000 80,000 25,000 30,000

215,000

-

35,000 378,000 1,388,000 1,801,000

-

130,000 750,000 30,000 910,000

-

537,100 202,600 138,000 483,500 189,000 1,550,200

537,100 202,600 138,000 483,500 189,000 1,550,200

75,000 475,000 160,000

10,000

500,000 250,000 1,460,000

250,000 -

50,000 1,700,000 402,000 1,460,000

-

5,600 5,600

-

-

130,000 125,000 30,000 285,000

-

-

-

-

-

130,000 500,000 250,000 25,000 30,000 500,000 500,000 1,935,000

-

85,000 1,700,000 378,000 1,790,000 3,953,000

-

5,600 5,600

-

130,000 ,750,000 30,000 910,000

-

537,100 202,600 138,000 483,500 189,000 1,550,200

625,000 625,000

-

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2017 Objectives Sewer Utility Major Maintenance/Project: Sewer master plan Capital Asset: Sewer outfall relocation—construction WWTP Headworks Sanitary Sewer renewal WWTP aeration system upgrade design Solid Waste Major Maintenance/Project: Solid Waste Management Plan Design & operations manual Capital Asset: Landfill renewal Composting/Waste diversion (SWMP) Airport Major Maintenance/Project: Runway 08-26 re-designation Water plant process controls Airport WW servicing - field investigation Airfield Lighting Capital Asset: Grader (ACAP) Perimeter Fence (ACAP) Apron 1 Expansion repairs (ACAP) Airport water plant upgrades - design/construction Airport connector main (CWWF) Pressure Washer Runway 04-22 (ACAP)

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Funded by: Proposed Budget

Carryover

200,000 200,000

-

10,880,000 3,129,000 1,320,000 100,000 15,429,000

2,000,000 1,429,000 215,000 100,000 3,744,000

50,000 50,000 100,000

6,000 50,000 56,000

235,000 1,100,000 1,335,000

235,000 370,000 605,000

35,000 5,450 73,600 5,000 119,050 275,000 1,400,000 38,500 59,000 6,071,700 12,000 7,150,000 15,006,200

Reserve

Operations

-

200,000 200,000

-

8,880,000 1,700,000 1,105,000 0 11,685,000

-

-

Grants

Total Funding

Borrowing

-

-

10,880,000 3,129,000 1,320,000 100,000 - 15,429,000

44,000 44,000

-

-

50,000 50,000 100,000

-

730,000 730,000

-

235,000 1,100,000 1,335,000

-

35,000 5,450 73,600 5,000 119,050

35,000 5,450 73,600 79,050

-

5,000 40,000

275,000 1,400,000 38,500

59,000 201,000

260,000

1,239,700 12,000

-

200,000 200,000

-

4,631,000 0 7,150,000 1,251,700 13,494,500

275,000 1,400,000 38,500 59,000 6,071,700 12,000 7,150,000 - 15,006,200

Northern Rockies Regional Municipality 2016 Annual Report


2017 Objectives Recreation Major Maintenance/Project: NRRRC security gates NRRRC hall sound system upgrades

General Government Capital Asset: Building renewal Rec Centre paydown

Funded by: Proposed Budget Carryover 10,000 5,500 15,500

Animal Control Major Maintenance/Project: Bear Response Program

Community Development & Planning Planning & Development Major Maintenance/Project: OCP/Zoning Bylaw Expansion IDCA Implementation Community Wildfire Protection Plan-Fort Nelson Capital Asset: Toad River Subdivision Development costs

Northern Rockies Regional Municipality 2016 Annual Report

Operations

-

500,000 2,575,800 3,075,800

Protective Services Fire Department Major Maintenance/Project: PPE—SCBA (Self-Contained Breathing Apparatus) FireSmart Grant FS Wildfire mitigation UAV Pilot

-

Reserve

10,000 5,500 15,500

Grants

Borrowing

-

-

500,000 2,575,800 -

-

20,000 10,000 137,450 167,450

-

-

3,000 3,000

-

3,075,800

20,000 105,000

90,000 90,000

15,000 15,000

125,000

10,000 5,500 15,500

500,000 2,575,800 -

-

20,000

75,000 200,000 30,000 305,000

Total Funding

3,075,800

20,710 40,710

10,000 116,740 126,740

-

20,000 10,000 137,450 167,450

-

3,000 3,000

-

-

3,000 3,000

-

55,000 95,000 7,500 157,500

-

75,000 200,000 30,000 305,000

-

75,000 75,000

-

90,000 90,000

22,500 22,500

-

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2017 Objectives Economic Development: Major Maintenance/Project: Economic strategy Foreign Direct Investment Strategy Economic forecasting: EDISON Forest Industry Rejuvenation Initiative Northern Rockies Community Forest Phase 2 - Aspen Market Analysis Arbor Day Agricultural Advisory Committee NR Business Faรงade Improvement Program 9-1-1 and mobile services Disc Golf Love Fort Nelson

Tourism Major Maintenance/Project: Tourism Strategic Plan Implementation Annual Tradeshow Attendance Visitor Centre Operations 75th Anniversary Grant program Public Washroom Partnership Program

Total Major Maintenance/Projects Total Capital Assets

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Funded by: Proposed Budget Carryover

105,010 16,480 40,500 66,280 45,000 250,000 5,000 3,000 14,550 6,500 33,350 1,200 586,870

Reserve

Operations

19,290 8,240 23,920 0 20,100 75,000 0 0 0 0 3,350 0 149,900

850 46,610 24,900

3,000 6,500

81,860

25,000 12,700 73,700 75,000 50,000 236,400

15,500

15,500

-

4,578,270 40,444,800 45,023,070

621,410 7,975,200 8,596,610

5,600 5,600

3,790 5,700 73,700 75,000 50,000 208,190

Grants

Borrowing

85,720 8,240 15,730 19,670

Total Funding

105,010 16,480 40,500 66,280 45,000 250,000 5,000 3,000 14,550 6,500 33,350 1,200 586,870

175,000 5,000 14,550 30,000 1,200 355,110

5,710 7,000

12,710

-

25,000 12,700 73,700 75,000 50,000 236,400

2,554,800 1,402,060 18,239,500 14,224,500 20,794,300 15,626,560

6,480,000 6,480,000

4,578,270 40,444,800 45,023,070

Northern Rockies Regional Municipality 2016 Annual Report


Northern Rockies Regional Municipality Financial Information 2016 Actual Breakdown of $1 Municipal Taxes

Wastewater Treatment Lagoon

Northern Rockies Regional Municipality 2016 Annual Report

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Northern Rockies Regional Municipality Financial Information 2016 Actual Revenue

2016 Actual Expense

Source: Notes to Financial Statements for the Year ended December 31, 2016 (Note 13. Segmented disclosure)

5 Year Historical Data: 2012—2016 2012

2013

2014

2015

2016

Consolidated Revenue:

33,867,473

33,456,595

35,892,514

49,116,578

46,012,488

Consolidated Expenses:

24,679,156

25,178,477

27,859,506

32,359,280

31,468,271

Annual Surplus :

9,188,317

8,278,118

8,033,008

16,757,298

14,544,217

1

1 Annual Surplus is used to fund debt repayment and capital investment.

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Northern Rockies Regional Municipality 2016 Annual Report


Northern Rockies Regional Municipality Financial Information Monthly average household costs in British Columbia

Comparison of Municipal Taxes in Other Communities* * On a house assessed at $300,000; municipal taxes only—school tax and

BC Assessment Authority levies are not included. $1,541

$1,600 $1,400 $1,200

$1,084 $959

$1,000 $800

$685

$600 $348 $355 $377

$400 $200

$92 $14

$99

$140 $147 $166 $168

$210 $215

$258

$14

$0

Source: Statistics Canada—Survey of Household Spending 2014

Northern Rockies Regional Municipality 2016 Annual Report

Source: BC Ministry of Community, Sport and Cultural Development—Local Government Statistics; Alberta Municipal Affairs—Maps and Statistics

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Consolidated Financial Statements For the Year Ended December 31, 2016

Table of Contents Management Responsibility

26

Independent Audit Report

27

Consolidated Statement of Financial Position

28

Consolidated Statement of Operations

29

Consolidated Statement of Changes in Net Financial Liabilities 30

25

Consolidated Statement of Cash Flows

31

Significant Accounting Policies

32

Notes to Consolidated Financial Statements

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Northern Rockies Regional Municipality 2016 Annual Report


Responsibility for Financial Reporting MANAGEMENT RESPONSIBILITY The accompanying financial statements of the Northern Rockies Regional Municipality (the "Regional Municipality) are the responsibility of management and have been prepared in compliance with legislation, and in accordance with Canadian public sector accounting standards for local governments as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants Canada. A summary of the significant accounting policies are described within the financial statements. The preparation of financial statements necessarily involves the use of estimates based on management's judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. The Regional Municipality's management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the financial statements. These systems are monitored and evaluated by management.

Mayor and Council meet with management and the external auditor to review the financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the financial statements. The financial statements have been audited by Sander Rose Bone Grindle LLP, independent auditors of the Regional Municipality. The accompanying Independent Auditors’ Report outlines their responsibilities, the scope of their examination and their opinion on the Regional Municipality’s financial statements.

Scott Barry Chief Administrative Officer

Kelly Sheppard Director of Finance

Fort Nelson, BC April 24, 2017

Northern Rockies Regional Municipality 2016 Annual Report

26


Responsibility for Financial Reporting INDEPENDENT AUDITOR’S REPORT To the Mayor and Council of the Northern Rockies Regional Municipality Report on the Financial Statements We have audited the accompanying consolidated financial statements of the Northern Rockies Regional Municipality, which comprise the consolidated statement or financial position as at December 31, 2016 and the consolidated statements of operations and cash flows and changes in net financial liabilities for the year then ended, and a summary or significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and or such Internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatements.

27

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose or expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Northern Rockies Regional Municipality as at December 31, 2016 and the results of its operations, its cash flows and changes in net financial liabilities for the year then ended in accordance with Canadian public sector accounting standards.

Fort St. John, BC April 24, 2017

Northern Rockies Regional Municipality 2016 Annual Report


Consolidated Statement of Financial Position See accompanying notes to consolidated financial statements

December 31, 2016 with comparative figures for 2015

Financial Assets1 Cash and cash equivalents

2016 $

Short Term Investments

23,877,166

2015 $

1,353,267

189,812

15,269,059

Accounts receivable (Note 1)

3,463,903

6,794,351,

Land for sale

4,467,336

4,467,336

-

-

13,930

-

-

261,906

32,012,147

28,145,919

22,000,000

27,000,000

Accounts Payable and accrued liabilities (Note 6)

6,292,028

4,915,009

Due to Northern Rockies Regional Hospital District

1,573,043

1,634,019

21,110

19,493

15,157,984

16,670,492

-

401,037

(45,044,165)

(50,640,050)

(13,032,018)

(22,494,131)

194,529,541

189,731,089

Prepaid expenses

347,798

64,146

Inventory

128,778

128,778

195,006,117

189,924,013

MFA Deposits Tax sale properties (Note 2) Mortgage receivable (Note 3)

Financial Liabilities Short term borrowing (Note 5)

Deferred Revenue Debenture debt (Note 7) Capital lease obligations (Note 8)

Net Debt

2

Non-Financial Assets3 Tangible capital assets (Note 10)

Accumulated Surplus 4 (Note 9) 1 2 3 4

$

181,974,099

$

167,429,882

Financial assets: cash resources. Net debt: the net financial position, calculated as the difference between financial assets and liabilities. Non-financial assets: assets that are owned and will be utilized for future services, including tangible capital assets, inventories and prepaid expenses. Accumulated surplus: this is an indicator of the Municipality’s overall financial health. It is the difference between the combined financial assets and non-financial assets as compared to its liabilities and includes the investments in tangible capital assets (capital equity), total reserves (restricted funds), appropriated surplus (internally appropriated funds/provisions) and general or unrestricted surplus.

Northern Rockies Regional Municipality 2016 Annual Report

28


Consolidated Statement of Operations1 For the Year ended December 31, 2016 with comparative figures for 2015

Revenues Taxation

See accompanying notes to consolidated financial statements

Budget 2016 (unaudited) $

Collected for other governments

27,732,060

Actual 2016 $

40,609,840

Actual 2015 $

42,456,735

-

(12,917,649)

(13,861,543)

Net Taxation

27,732,060

27,692,191

28,595,192

Government transfers

15,514,940

12,896,480

15,253,991

4,420,150

4,385,401

4,789,135

50,000

-

75,265

Actuarial Adjustments

-

1,044,976

275,075

Gain/loss on disposal of TCA

-

(6,560)

127,920

47,717,150

46,012,488

49,116,578

General government

3,244,640

2,996,452

3,244,772

Protective Services

4,425,360

4,456,779

3,843,620

Utilities

2,828,750

3,844,563

4,344,121

Community development

1,181,020

1,444,917

1,478,415

Recreation and Culture

6,570,800

8,666,767

8,108,416

Transportation Services

5,775,820

6,590,075

7,872,564

Solid waste management

1,315,340

1,118,491

1,125,436

47,590

40,442

33,313

1,507,600

2,307,772

2,281,640

-

2,013

26,983

27,533,920

31,468,271

32,359,280

20,183,230

14,544,217

16,757,298

Accumulated surplus

-

167,429,882

150,672,584

Prior period adjustment (Note 11)

-

-

-

Accumulated surplus, beginning of year, restated

-

167,429,882

150,672,584

20,183,230

$ 181,974,099

Fees and charges Land Sales

Expenses

Cemetery Airport Land development Annual surplus

2

Accumulated surplus, end of year 1 2

29

$

$

167,429,882

The statement of operations shows the sources of revenues and expenses, the annual surplus or deficit and the change in the accumulated surplus Annual surplus is shown on this statement as the difference between revenues recognized and the cost of government services provided in the fiscal year.

Northern Rockies Regional Municipality 2016 Annual Report


Consolidated Statement of Changes in Net Financial Liabilities See accompanying notes to consolidated financial statements

For the Year ended December 31, 2016 with comparative figures for 2015

Budget 2016 Excess Revenue Over Expense

$

TCA (tangible capital assets)—capitalized in year

20,183,230

2016 $

14,544,217

2015 $

16,757,298

(29,810,400)

(10,973,932)

(15,774,651)

Amortization of tangible capital assets

-

6,151,434

5,962,682

Proceeds from disposal of tangible capital assets

-

17,486

157,618

Gain/loss on disposal of TCA

-

6,560

(127,920)

Change in inventory

-

-

-

Change in prepaid expenses

-

(283,652)

(64,146)

(9,627,170)

9,462,113

6,910,881

-

(22,494,131)

(29,405,012)

Decrease (increase) in Net Financial Liabilities Net Financial Liabilities, beginning of year Net Financial Liabilities, end of year

Northern Rockies Regional Municipality 2016 Annual Report

$

(9,627,170)

$

(13,032,018)

$

(22,494,131)

30


Consolidated Statement of Cash Flows See accompanying notes to consolidated financial statements

December 31, 2016 with comparative figures for 2015

2016

Operating Activities Excess revenue over expenses

$

14,544,217

2015 $

16,757,298

Amortization of tangible capital assets

6,151,434

5,962,682

(Gain)/loss on disposal of capital assets

6,560

(127,920)

3,330,448

(4,295,664)

-

(20,601)

Decrease/(increase) in prepaid expenses

(283,652)

(64,146)

Decrease/(increase) in tax sale properties

Decrease/(increase) in receivables Decrease/(increase) in property held for resale

(13,930)

13,006

Decrease/(increase) in inventory

-

-

Decrease/(increase) in Municipal Finance Authority (MFA) deposits

-

22,467

(5,000,000)

(5,000,000)

1,377,019

(2,091,059)

Increase/(decrease) in short term borrowing Increase/(decrease) in accounts payable and accrued liabilities Increase/(decrease) in deferred revenue

1,617

(15,011)

20,113,713

11,141,052

(10,973,932)

(15,774,651)

Investing Activities Acquisition of tangible capital assets Proceeds from disposal of tangible capital assets Mortgage receivable

17,486

157,618

261,906

13,489

(10,694,540)

(15,603,544)

(1,512,508)

(839,154)

(401,037)

(180,334)

(60,976)

40,229

(1,974,521)

(979,259)

7,444,652

(5,441,751)

16,622,326

22,064,077

24,066,978

16,622,326

23,877,166

1,353,267

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

Net cash increase (decreases) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash and cash equivalents consist of the following: Cash and cash equivalents Short term investments

189,812 $

31

24,066,978

15,269,059 $

16,622,326

Northern Rockies Regional Municipality 2016 Annual Report


Significant Accounting Policies See accompanying notes to consolidated financial statements

For the Year ended December 31, 2016

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

are administered by the regional municipality and are specifically excluded from the consolidated financial statements and are reported separately (Note 12).

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

Land Held for Resale

Significant accounting policies adopted by the regional municipality are as follows: Basis of consolidation The financial statements include a combination of all the assets, liabilities, accumulated surplus, revenues and expenses of all of the regional municipality's activities and funds. All material interdepartmental balances and organizational transactions have been eliminated. The regional municipality entered into a joint venture called NRM Industrial Subdivision Joint Venture in the development of light industrial lands. In accordance with PS 3060, Government Partnership, of the Public Sector Accounting Board handbook, the regional municipality is required to account for the Joint Venture using proportionate consolidation. Accordingly, the consolidated financial statements include 50% of the accounts of the joint venture. The Cemetery Trust, Employee Trust and Invasive Plant Trust Funds

Northern Rockies Regional Municipality 2016 Annual Report

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

Land held for resale is measured at the lower of cost and net realizable value. Cost consists of material costs, subcontractor costs, and other costs incurred in bringing the land to their present location and condition. Costs of land for sale are segregated for specific projects and are assigned by using specific identification of their individual costs. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated selling costs. Mortgage receivable Mortgage receivable is recorded at principal amount, less any allowance for anticipated losses, plus accrued interest. Interest revenue is recorded on the accrual basis. Inventory Inventory consists of residential curbside collection carts distributed to residences. Inventory is recorded at cost. Expenses Expenses are recorded in the period in which the goods or services are acquired and a liability is incurred.

32


Significant Accounting Policies See accompanying notes to consolidated financial statements

For the Year ended December 31, 2016

Revenue Recognition

Financial Instruments

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

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

Government transfers Government transfers are recognized as revenue in the period that the transfer is authorized, eligibility criteria, if any, have been met by the regional municipality, and a reasonable estimate of the amount to be received can be made. Taxation revenue Annual levies for non�optional municipal services and general administration services are recorded as taxes for municipal purposes. Levies imposed by other taxing authorities are not included as taxes for municipal purposes. Taxes are recognized as revenue in the year they are levied. Through the British Columbia Assessments appeal process taxes may be adjusted by way of supplementary roll adjustments. The effects of these adjustments on taxes are recognized at the time they are awarded. Use of Estimates Management has made estimates and assumptions that affect the amount reported in preparing these financial statements. Significant areas requiring the use of management estimates relate to the determination of tangible capital assets historical cost, estimated useful life and related amortization, and landfill post closure costs. Actual results could differ from the estimates. Budget Information Unaudited budget information, presented on a basis consistent with that used for actual results and excluding amortization, was included in the Northern Rockies Regional Municipality Consolidated Five Year Plan and was adopted through Bylaw No. 120,2016 on May 9, 2016.

33

Reserve for Future Expenses Reserves for future expenses are non�statutory reserves which represent an appropriation of surplus for specific purposes. Transfers to reserves for future expenses include funds to finance incomplete projects and accumulations for specific purposes. Statutory Reserve Funds The use of these funds is restricted by the Community Charter and associated Municipal Bylaws. Statutory reserve funds are funded 100% by cash. Work in Progress Work in progress represents capital projects under construction but not yet completed and are valued at cost. The purchase and development of land for residential subdivisions is held in work in progress while road and utility services are being constructed. Tangible Capital Assets The regional municipality records physical assets including assets held under capital lease, at cost in the period they were acquired or when the asset is put into use.

Northern Rockies Regional Municipality 2016 Annual Report


Significant Accounting Policies See accompanying notes to consolidated financial statements

For the Year ended December 31, 2016

Tangible Capital Assets (continued) Tangible capital assets are recorded at cost, net of disposals, write‐ downs and amortization. The useful life is applied on a straight line basis to calculate amortization. A full year of amortization is claimed in the year of acquisition providing the asset is in use, and no amortization is claimed in the year of disposal.

Tangible Capital Assets Land

Useful Life n/a

Land improvements

15—25 years

Buildings

20—50 years

Machinery and equipment

5—15 years

Vehicles

6—15 years

Transportation infrastructure

5—50 years

Sewer infrastructure

25—80 years

Water infrastructure

25—80 years

Airport infrastructure

15—60 years

Northern Rockies Regional Municipality 2016 Annual Report

34


Notes to Consolidated Financial Statements For the Year ended December 31, 2016 The notes to the consolidated financial statements are an integral part of the statements. They explain the reporting policies and principles underlying these statements. They also provide relevant supplementary information and explanations which cannot be conveniently expressed in the consolidated financial statement. 1. Accounts Receivables

4. Line of Credit

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

The regional municipality holds a line of credit which includes a demand operating facility of up to $995,000. The balance of the line of credit was $ NIL (2015: $ NIL) at December 31st. This facility bears interest at prime rate plus 1.25% per annum.

2016 Trade accounts and other

$

550,045

2015 $

791,677

Property taxes receivable

1,527,950

1,221,674

Due from senior governments

1,385,908

4,781,000

$

3,463,903

$

6,794,351

5. Short Term Borrowing The regional municipality obtained short term borrowing issued through the Municipal Finance Authority at a daily floating rate which ranged between 1.31% and 1.44% during 2016.

2. Tax Sale Properties

6. Accounts Payable and accrued expenses

Property acquired for taxes subject to redemption are as follows:

Accounts payable consist of the following:

2016 Opening balance

$

Additions

-

2015 $

13,006

13,930 (13,006) 13,930

$

-

3. Mortgages Receivable Mortgage receivable, which represents 50% interest in mortgage granted through vendor financing on the sale of land by the Joint Venture, repayable in monthly instalments of $4,492 including interest at 5%. Due February 5, 2017.

35

2016 $

-

Wages and accrued benefits

$

Payable to trust accounts

Redemptions $

2016

2015 $

261,906

1,161,189

2015 $

1,017,877

105,375

101,556

Trade accounts payable

2,495,637

1,642,210

AP—Other Governments

1,308,565

903,882

Landfill closure/post-closure facility

902,196

902,196

Refundable deposits

268,428

272,320

2,138

74,968

48,500

-

Subdivision development Tax Sale Deposits $

6,292,028

$

4,915,009

Northern Rockies Regional Municipality 2016 Annual Report


Notes to Consolidated Financial Statements For the Year ended December 31, 2016 7. Long-term debt

Municipal Finance Authority Debt Reserve Fund

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

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

Interest rates on long term debt range from 3.0% to 5.15%. The average interest rate was 3.99% (2015 �3.99%). Gross amount of debt and the amount of the sinking fund assets available to retire the debt are as follows:

Gross Debt

Capital Funds General

$

8,000,000 $

Sinking Fund Assets

2016 Net Debt

2015 Net Debt

1,314,325 $

6,685,675 $

6,873,381

Water Utility

14,126,661

6,483,253

7,643,409

8,869,365

Sewer Utility

1,841,416

1,012,516

828,900

927,746

$

23,968,077 $

8,810,094 $

15,157,984 $

16,670,492

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

Upon maturity of a debt issue, the unused portion of the Debt Reserve Fund established for that issue will be discharged to the regional municipality. The proceeds from these discharges will be credited to income in the year they are received. As at December 31, 2016 the total of the regional municipality's MFA Debt Reserve Fund is comprised of:

2016 Cash deposits

$

2015

284,182

$

355,318

534,016

Demand notes $

658,850

818,198

$

1,014,168

506,146

8. Capital Lease Obligations

2018

506,146

The regional municipality has the following obligations under capital leases:

2019

506,416

2020

451,069

2021

451,069

2017

$

Scheduled debt repayments may be suspended in the event of excess sinking fund within the MFA. Principal paid during the year was $573,862 (2015 �$564,080). Interest paid during the year was $897,738 (2015 �$1,013,605).

2016 Finance contract repayable in monthly instalments of $1,911 including interest at 2%, secured by certain equipment

$

22,627

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

-

289,550

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

-

88,860

$

Northern Rockies Regional Municipality 2016 Annual Report

- $

2015

- $ 401,037

36


Notes to Consolidated Financial Statements For the Year ended December 31, 2016 9. Accumulated Surplus Accumulated surplus consists of individual fund surplus and reserves and reserve funds as follows: 2016

2015

2016

Surplus Investment in tangible capital assets

Continued from previous page Appropriated reserves (continued)

$ 149,616,683

$ 137,790,829

15,802,433

14,845,276

Water utility

1,938,477

1,822,147

Town square improvement reserve

Sewer utility

1,321,186

1,204,885

Infrastructure reserve

Joint venture

671,747

667,131

169,350,496

156,330,268

General

2015

Appropriated reserves

Sidewalk reserve

$

Reserve for Roads

Parkland/Development charges reserve Reserve for building 292 Water reserve

3,307

$

3,307

1,445,984

474,970

4,733

4,733

1,934,000

1,934,000

32,755

32,755

1,000,000

500,000

38,691

38,691

Council gift reserve

3,144

3,144

Rural water west reserve

112,143

112,143

Punch bowl reserve

1,439

1,439

Water utility future expense reserve

416,190

416,190

1,215,000

1,215,000

56,630

56,630

Airport working fund reserve

100,000

100,000

9,491,323

8,195,308

Airport future expense reserve

747,515

747,515

Airport equipment future expense reserve

814,868

814,868

10,000

10,000

Feasibility Study Reserve Fund

92,012

92,012

1,214,132

1,168,378

Tax Sale Properties Reserve Fund

52,818

52,818

184,583

208,126

243,673

243,673

273

273

2,572,098

2,344,124

3,910

7,410

119,529

119,529

Library equipment future expense reserve

14,500

14,500

52,150

52,150

Theatre working fund reserve

61,486

61,486

3,132,280

2,904,306

Theatre future expense reserve

76,040

269,750

Solid waste future expense reserve

Museum working fund reserve Museum future expense reserve Golf course future expense reserve Library working fund reserve Library future expense reserve

Continued on next page

37

Sewer utility reserve

Statutory Reserve Funds

Capital Works, Machinery & Equipment Machinery & Equipment Depreciation Sewerage System Reserve Fund Water Utility Reserve Fund

$

181,974,099

$ 167,429,882

Northern Rockies Regional Municipality 2016 Annual Report


Notes to Consolidated Financial Statements For the Year ended December 31, 2016 10. Tangible Capital Assets

Land Improvement

Land

Buildings

Machinery & Equipment

Vehicles

Cost Balance, beginning of year

$

4,706,806

$

2,053,637 $

105,836,588 $

4,612,754

$

12,636,129

Add: additions during year

-

-

783,320

-

230,527

Less: disposals during year

-

-

-

(22,982)

(241,523)

4,706,806

2,053,637

106,619,908

4,589,772

12,625,133

Balance, beginning of year

-

571,553

13,730,872

3,071,212

6,897,996

Add: amortization

-

95,386

2,189,393

238,884

564,588

Less: accumulated amortization on disposals

-

-

-

(22,982)

(217,477)

Balance, end of year

-

666,939

15,920,265

3,287,114

7,245,107

90,699,643

1,302,658 $

5,380,026

Balance, end of year Accumulated amortization

Net book value of tangible capital assets

$

4,706,806

$

1,386,698 $

Work in progress

$

1,732,741

$

294,942 $

$

195,916 $

-

$

128,106

Continued on next page

Included in the above are the following assets under capital lease: Cost Vehicles

$

Northern Rockies Regional Municipality 2016 Annual Report

Acc. Amort -

$

2016 NBV - $

2015 NBV - $

671,746

38


Notes to Consolidated Financial Statements For the Year ended December 31, 2016 10. Tangible Capital Assets continued from previous page

Inf ra st r uct ur e Water

Sewer

Roads

Airport

2016

2015

Cost Balance, beginning of year

$

41,641,861

$

17,524,988 $

48,781,448

$

23,131,661 $ 260,925,872

$

217,188,230

Add: additions during year

-

16,966

2,235,076

5,704,106

8,969,995

45,533,117

Less: disposals during year

-

-

-

(759,743)

(1,024,248)

(1,795,475)

41,641,861

17,541,954

51,016,524

28,076,024

268,871,619

260,925,872

13,855,006

8,923,433

21,366,650

14,400,890

82,817,612

78,620,705

641,006

339,280

1,332,130

750,766

6,151,433

5,962,682

-

-

-

(759,743)

(1,000,202)

(1,765,775)

Balance, end of year

14,496,012

9,262,713

22,698,780

14,391,913

87,968,843

82,817,612

Net book value of tangible capital assets

27,145,849

8,279,241

28,317,744

13,684,111

180,902,776

178,108,260

Balance, end of year Accumulated amortization Balance, beginning of year Add: amortization Less: accumulated amortization on disposals

Work in progress

39

$

1,006,072

$

5,861,165 $

4,407,824

$

- $

13,626,766

$

11,622,829

Northern Rockies Regional Municipality 2016 Annual Report


Notes to Consolidated Financial Statements For the Year ended December 31, 2016 11. Commitments and Contingencies Pension Liability The regional municipality and its employees contribute to the Municipal Pension Plan (a jointly‐trusteed pension plan). The board of trustees, representing plan members and employers, is responsible for administering the Plan, including investment of assets and administration of benefits. The Plan is a multi‐employer defined benefit pension plan. Basic pension benefits are based on a formula. As at December 31, 2015, the Plan has about 189,000 active members and approximately 85,000 retired members. Active members include approximately 37,000 contributors from local government. Every three years, an actuarial valuation is performed to assess the financial position of the plan and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary's calculated contribution rate is based on the entry‐age normal cost method, which produces the long‐term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plan. This rate is then adjusted to the extent there is amortization of any funding deficit. The most recent actuarial valuation for the Municipal Pension Plan as at December 31, 2015 indicated a $2,224 million funding surplus for basic pension benefits on a going concern basis. The regional municipality paid $716,335 for employer contributions to the Plan in fiscal 2016. The next valuation will be as at December 31, 2018 with results available in 2019.

Northern Rockies Regional Municipality 2016 Annual Report

Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the plan records accrued liabilities and accrued assets for the Plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to the individual employers participating in the Plan. Legal Liabilities The regional municipality is potentially exposed to lawsuits arising from the ordinary course of operations. Although the outcome of such matters cannot be predicted with certainty, management does not consider the Regional Municipality's expose to be material to these financial statements. Landfill Closure and Post-Closure Costs Included in payables is $902,196 (2015 - $902,196). These amounts represent management's total estimated liability for landfill closure and post-closure care. The estimated liability for these costs is recognized as the landfill site's capacity is used. Estimated total expenses represents the sum of the discounted future cash flows for closure and post-closure care activities discounted at an annual estimated borrowing cost of 2%. Landfill closure and post-closure care requirements have been defined in accordance with the Ministry of Environment's Landfill Criteria for Municipal Solid Waste and included final covering and landscaping of the landfill, monitoring groundwater, surface water and landfill gas and erosion settlement for a period of 25 years. The reported liability is based on estimates and assumptions with respect to events extending over the remaining life of the landfill. The remaining capacity of the landfill site is estimated at 610,227 cubic metres, which is 73% of the site's total capacity. The landfill site is expected to reach capacity in 2097.

40


Notes to Consolidated Financial Statements For the Year ended December 31, 2016 12. Trust Funds In accordance with PSAB recommendations for local governments, trust funds are not included in the regional municipality's consolidated financial statements. The regional municipality administers a Cemetery Maintenance Fund for the perpetual care and maintenance of the regional municipally-owned and operated cemeteries. As at December 31, 2016 the Cemetery Trust Fund balance is $22,613 (2015 ‐$22,163). The regional municipality administers an Employee Trust Fund on behalf of its employees. As at December 31, 2016 the Employee Trust Fund balance is $6,465 (2015 ‐ $4,542). The regional municipality administers an Invasive Plant Trust Fund on behalf of the community. As at December 31, 2016 the Invasive Plant Trust Fund balance is $76,296 (2015 ‐ $74,850). 13. Segmented Disclosure The Northern Rockies Regional Municipality provides various services within various divisions. The segmented information as disclosed in this section reflects those functions offered by the regional municipality as summarized below:

Utility services ‐ activities related to sewer and water utilities. Sewer utility activities are related to gathering, treating, transporting, storing and discharging sewage or reclaimed water. Water utility activities are related to supplying, storing, treating and transporting water. Community development services ‐ activities related to community planning, economic development and tourism. Recreation and cultural services ‐ activities related to recreational and cultural services including parks and facilities for recreational and cultural activities. Transportation services ‐ activities related to transportation services including maintenance of roads, sidewalks, street lighting and signage. Environmental health services ‐ activities related to solid waste management. Cemetery ‐ activities related to cemetery maintenance Airport services ‐ activities related to operation of the airport. Subdivision development ‐ activities related to operation of the NRM Industrial Subdivision Joint Venture and specifically the amount consolidated in these financial statements.

General government ‐ activities related to the administration of the regional municipality as a whole including central administration, finance, human resources, common services and legislative operations. Protective services ‐ activities related to providing for the security of the property and citizens of the regional municipality including policing, fire protection, emergency planning, building inspection, animal control and bylaw enforcement. The population of the regional municipality was reported above 5,000 in 2013 and policing costs were included as of April 1, 2013.

41

Northern Rockies Regional Municipality 2016 Annual Report


Notes to Consolidated Financial Statements For the Year ended December 31, 2016

13. Segmented Disclosure

General Government

Protective Services

Community Development

Utilities

Recreation & Culture

Transportation Services

Revenue Taxation Government transfers Fees and charges Land sales Actuarial adjustments

$

Gain/loss on disposal of TCA Total revenue

26,728,382 10,800,065 355,307 -

$

82,291 112,520 -

$

963,809 10,000 1,701,976 999,911

$

100,258 14,790 -

$

3,803 965,773 45,065

$

13,752 -

(6,560) 37,877,194

194,811

3,675,696

115,048

1,014,641

13,752

1,802,002 602,160 164,017 88,081 140,902 200,000 2,996,452

1,461,242 2,733,838 148,562 15,858 97,279 4,456,779

1,083,062 648,525 174,175 210,765 1,242,298 485,738 3,844,563

794,263 601,168 49,486 1,444,917

3,221,587 956,142 484,036 549,378 683,521 1,983,669 788,434 8,666,767

998,812 3,358,458 478,910 139,456 1,614,439 6,590,075

34,880,742

$ (4,261,968)

Expenses Wages and benefits Contracted services Materials and supplies Utilities Transfers Amortization Debt charges Bad debts Total expense Annual surplus (deficit)

$

$

(168,867)

$

(1,329,869) $ (7,652,126)

$

(6,576,323)

Continued on next page

Northern Rockies Regional Municipality 2016 Annual Report

42


Notes to Consolidated Financial Statements For the Year ended December 31, 2016

13. Segmented Disclosure Continued from previous page

Solid Waste Management

Cemetery

Airport

Joint Venture

2016

2015

Revenue Taxation Government transfers Fees and charges Land sales Actuarial adjustments

$

Gain/loss on disposal of TCA Total revenue

510,132 -

$

2,930 -

$

1,900,063 701,593 -

$

6,628 -

$

27,692,191 12,896,480 4,385,401 1,044,976

$

28,595,190 15,253,991 4,789,136 75,265 275,075

510,132

2,930

2,601,656

6,628

(6,560) 46,012,488

127,920 49,116,577

123,420 958,925 8,740 4,450 22,956 1,118,491

20,562 15,277 671 3,932 40,442

678,369 222,116 263,693 96,925 1,046,669 2,307,772

2,013 2,013

10,183,319 10,098,622 1,772,290 1,104,913 683,521 6,151,434 1,274,172 200,000 31,468,271

9,870,667 11,086,241 1,957,189 1,276,408 788,821 5,962,682 1,036,071 381,200 32,359,279

Expenses Wages and benefits Contracted services Materials and supplies Utilities Transfers Amortization Debt charges Bad debts Total expense Annual surplus (deficit)

43

$

(608,359)

$

(37,512)

$

293,884

$

4,615

$

14,544,217

$

16,757,298

Northern Rockies Regional Municipality 2016 Annual Report


NRRM 2016 Permissive Property Tax Exemptions In accordance with Section 98(2)(b) of the Community Charter, we disclose that the following properties were provided permissive property tax exemptions by the Northern Rockies Regional Municipality Council in 2015. Permissive tax exemptions are those exemptions granted by Northern Rockies Regional Municipality 2016 Permissive Tax Exemption Bylaw No. 118, 2015 in accordance with Section 224 of the Community Charter.

Organization

Roll Number

Value of Permissive Tax Exemption

1.

Fort Nelson Rod & Gun Club

000109.500

2.

Historical Society Museum

000110.520

1285.60

3.

Historical Society Museum

000110.535

4040.57

4.

Catholic Episcopal Corporation of Whitehorse

000111.000

147.20

5.

Northern Lamplighters Activity Centre Association

000145.510

1172.94

6.

Fort Nelson Family Development Society

000530.000

3446.21

7.

FN Aboriginal Friendship Society

000550.000

4513.73

8.

Pentecostal Assemblies of Canada

000574.000

241.76

9.

Fort Nelson Temple Building Society

000599.000

157.76

10.

Elks Lodge Society

000643.000

393.18

11.

Christian & Missionary Alliance Canadian Pacific District

000702.100

429.41

12.

FN Aboriginal Friendship Society

000720.000

860.21

13.

United Church of Canada

000796.100

197.40

14.

Northern Rockies Aboriginal Women Society

000868.000

2082.53

15.

Northern Rockies Aboriginal Women Society

000879.000

810.40

16.

Northern Rockies Aboriginal Women Society

000880.000

810.40

17.

Congregation of the Jehovah Witnesses of Fort Nelson

001063.000

345.74

18.

Bhav Khandan Darbar Guru Sikh Society

001085.471

1436.37

19.

Fort Nelson Senior Citizen's Housing Complex

005500.500

3444.36

20.

Phoenix Theatre Management Society

005500.640

7935.71

21.

Fort Nelson Public Library

005500.650

4127.38

22.

Community Health Services Society

005500.660

945.02

23.

FN Playschool Society

005500.670

1732.53

24.

FN Chamber of Commerce

005500.690

774.05

25.

Northern Rockies Seniors Society

005514.126

3156.55

26.

FN Aboriginal Friendship Society

005519.225

563.54

27.

Scouts Properties (BC/Yukon) Ltd.

040795.045

48.35

28. 29.

Fort Nelson Snowmobile Club Catholic Episcopal Corporation of Whitehorse

041806.100 041876.015

191.39 257.25

Northern Rockies Regional Municipality 2016 Annual Report

$

1384.47

44


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

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

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

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

Northern Rockies Regional Recreation Centre

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

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

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

Poplar Hills Golf and Country Club Radar Road, Mile 304 Old Alaska Highway Fort Nelson, BC V0C 1R0 250-774-3862 www.poplarhillsgolf.com/

/fortnelsonshow/

45

Northern Rockies Regional Municipality 2016 Annual Report


Northern Rockies Regional Municipality 5319—50 Avenue South Bag Service 399 Fort Nelson, BC V0C 1R0

Northern Rockies Regional Municipality 2016 Annual Report

46


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