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.
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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
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Independent Audit Report
27
Consolidated Statement of Financial Position
28
Consolidated Statement of Operations
29
Consolidated Statement of Changes in Net Financial Liabilities 30
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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
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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.
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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/
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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
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