2019 Annual Report

TOWN OF VEGREVILLE

2019 ANNUAL REPORT

Peop le o u r co re • I n n ovat i o n o u r st ren gt h • Com m uni t y our i ntent i on

CONTENTS Message from the Mayor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Meet your Councilors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Message from the Town Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Boards & Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Our Mission, Mandate and Core Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Municipal Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Fire Protection & Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Parks & Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Family & Community Support Ser vices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Development & Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Busin ess Licensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Municipal Ser vices & Public Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Corporate Ser vices & Financial Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Audited Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

WELCOME TO VEGREVILLE We’re a vibra nt communit y located one-hour ea st of Alberta’s capital city. Wit h a bustling population of nearly 6,000, we offer our residents big-city amenit ies, with a ll the comfort and convenience of sma lltown living.

For years, Town Councils have empha sized the importance of communit y in their endeavor of improving the qua lity of life of our citizens. Today, the results speak for themselves, our resident ’s enduring passion a nd commitment for t heir Town has influenced ser vices and opportunities that cater to the unique needs of Vegreville.

Vegreville’s world-cla ss event s, our diverse and well-rounded business community, and the supports and partnerships a vaila ble to our more vulnerable populat ions, all speak to the devotion of our residents and a re a few of the many reasons why Vegreville is such a beautiful pla ce to call home.

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MEET YOUR MAYOR “I was elected Mayor in 2017 and held the position of Town Councilor the previous four years. I moved to Vegreville in 1989 and have been a resident and small business owner for the last 31 years. Along with my duties on numerous boards and committees, my priority has always been to find a balance between wants and needs in the budget. I try to keep taxes low and work to be accountable and transparent in all of my decisions. I’m especially proud of my two children and I’m happy to have raised them in this community.”

2019 ANNUAL REPORT Council and I are proud to present to you the Town of Vegreville 2019 Annua l Report. We be lieve it conclusively demonstrates our dedica tion and the hard work tha t we’ve devoted to keeping our Town thriving. As Elected Officials, we’re fortunate to have the engaged cit iz enry as we do in Vegreville. Your feedback, ideas, and pure-passion for the Town give us the tools we need to sha pe our communit y ’s grow th.

Over the past few yea rs, Vegreville has been dea lt a tough ha nd, from the closing of the Case Processing Centre to a n increa sed downloa d of responsibilities from t he Province. But in light of those obsta cles, 2019 was a year of ‘rubber hitt ing the road’ on key init iat ives that were born from t hose cha llenges; specifica lly, our increased empha sis on tourism and economic development -- two a reas that radically impa ct the prosperit y of our local economy.

As I look ba ck on Vegreville’s yea r, I’m very proud of what we accomplished, and I believe Council and I have set the Town down the right path as we enter the new decade.

Here’s to a productive 2020!

MAYOR Tim MacPhee

tmacphee@vegreville.com 780.632.9378

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MEET YOUR COUNCILORS

COUNCILOR Jerrold Lemko

COUNCILOR Tina Warawa

jlemko@vegreville.com 780.632.8935

twarawa@vegreville.com 780.603.1351

“ This is my first term on Council, having been electe d in October 2017. I appreciat e the opportunit y to represent the resident s of our communit y a nd will continue to work hard to ensure Vegreville is a great place to live a nd work.

I presently ser ve on several committees of Council, the most not a b le of these a re t he Libra ry, Tourism a nd FCSS boards where my ambition is to build a st rong , united, and support ive communit y. I ha ve and will continue to endeavor to make a difference while serving on Council by helping build a sustaina ble community, where peopl e wa nt to live a nd work, now and in the future .”

“My two sons and I chose to make Vegreville our home in 2010. I have dedicated more t han 14 years to volunteering in minor hockey, including being current Vegreville president.

It ’s my first term on Council but I brought with me eight previous yea rs of council experience, including four years as a municipa l mayor.

My work experience include s nine years with bot h provincial and federal governments and I’m currently employed with the Lakeland Member of P arliament ’s office.

As a local Councilor, I serve on several boa rds including FCSS, Tourism, Community Futures and Solid Waste.”

COUNCILOR Ann Waters awaters@vegreville.com 780.632.1612 “ With Vegreville being my hometown, I am proud to be your voice on council a s a first-term councillor.

2019 was a challenging budget yea r with many difficult decisions. I sit on many loca l boa rds from youth to our seniors, and the budget decisions affected ever yone in one way or another. During these hard economic times, we have been fortunate to see out side investment in Vegreville, as well as the expansion of our current businesses. It took a lot of hard work and conversa tions through Council that brought investors and businesses here. This in turn, w ill bring future growth into our local industries.

As a member of Council I will continue to have your voice heard, and will help our municipality grow.”

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COUNCILOR Taneen Rudyk trudyk@vegreville.com 780.632.1455 “Origina lly from the Vegreville a rea, my husband and I returned to the community after studying a nd working in Japan and Edmonton.

Our da ughters Br ynn, Acadia , and Ca lista a nd son Maxim have been involved in many activities, which meant I have been a busy volunteer and community a ctivist, flipping burgers, folding pamphlet s, and coordinating f undraisers.

Professiona lly, I’ve worked for bot h provincia l and federal orders of governm ent in a variety of roles from counselling high needs teens to issuing work permits and study visas to t raining election workers. I also support my husba nd’s business ventures in pipeline welding and sustainable water solut ions, the poetic Prairie combina tion of re source based and green technologies tha t define the modern Alberta approa ch.”

COUNCILOR Dave Berry dberry@vegreville.com 587.280.0772 “It is my privilege to ser ve the resident s of Vegreville, not only a s a Councilor for the past six yea rs, but by sitt ing on committees such as M.D. Minbu rn Foundat ion, Northern Lights Librar y System and t he Vermilion River Watershed Allia nce.

Our Council promotes communit y engagement and is invested in t he communit y st riving to a chieve our vision “People Our Core, Innovation Our Strengt h, Community Our I ntention.” The economic downt urn was challenging, but 20 19 was a successful year in tha t Council encoura ged business and mainta ined a low tax increa se. I wa nt seniors to be rec ogniz ed as an industry bringing in outside money through federal pensions to support our local economy, and for their tremendous number of hours as volunteers.”

COUNCILOR Marielle Brodzaik mbrodzaik@vegreville.com 780.632.1764 “First elected in 2013, I 'm currently ser ving my second term as Councilor for the Town of Vegreville. Nomina tion to various boa rds ha s enabled my intent to be an advocate for my communit y.

I strongly support Council’s progressive focus on Economic Development to move Vegreville for ward by investing in infra structure to attract investment. I also believe the rewards of investing in our youth and seniors a re key to the sustenance of a hea lthy community. I envision Vegreville as a communit y ‘ Working Better Together ’ to make our town a great pla ce to live, work, play and eventua lly retire.”

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ORGANIZATIONAL STRUCTURE

Council

Town Manager

Corporate Ser vices

Finance

C o m m u n i ty S er vi c e s

Municipal

Planning &

Enforcement

Development

Fire Communications

IP&D

Protection & Safety

Parks, Recreation & Facilities

Legislative

Economic

Services

Development

Public Works

Municipal Services

RCMP Liason

Tourism, Recreation & Culture

Utilities

Library Liason

FCSS IP&D = Infrastructure, Planning & Development FCSS = Family and Community Support Ser vices

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A YEAR OF CHANGE I a m pleased to provide this introduction to the

In 2018, the Town of Vegreville commenced

Town of Vegreville 2019 Annual Report.

construction of a new RCMP Detachment as the current facility no longer met the requirements of

Our fina ncia l position remained in great shape,

the RCMP. The new RCMP Detachment was

and the programs and ser vices we delivered to

completed and occupied in June and now ser ves as

citizens maximized the limited and valuable

an impressive staple to our west-end.

resources availa ble. A focus on a sset management and susta ina ble ser vice deliver y was the theme for

We continue to work towards greater efficiencies

our strategic pla nning a nd budgeting. To maintain

and are enhancing ser vice levels through

sustaina ble ser vice deliver y, we implemented

training , technology, and best practices. We work

various orga nizat iona l changes with emphas is on

hard to provide and maintain a good

asset management, community engagement, and

quality of life while meeting the challenges of our

communication. This new structure ha s aligned

community. As Vegreville continues to invest in

us more close ly with best practices for municipal

long-term financial stability through asset

organizat ions.

management and infrastructure stewardship, I believe citizens will be well ser ved in the future.

The Community Ser vices Department realized the addition of a Tourism Coordinator position, that

I commend the Town staff in all departments

now works closely wit h the newly formed

whose hard work and dedication support a wide

Vegreville Tourism Advisor y Board, which is

range of functions that make living in Vegreville so

helping us develop stronger pa rtnerships to

enjoyable. When you look at the number of

enhance cultura l and social activities and events.

ser vices and supports we provide residents and the subsequent quality of life of our citizens, it

Significa nt work was devoted to our

makes me proud to be part of this team – Town

I ntermunicipa l Colla boration Framework (ICF) with

Council and Administration demonstrate such

the Count y of Minburn. Fortunately, the Town and

passion and commitment to our community.

County alrea dy had several intermunicipal agreements in pla ce, so we’re entering the new decade with our ICF ver y near to completion.

The Town experienced a big change in Februar y when the Town of Vegreville voted to divest the municipally operated Ambulance [EMS] Ser vice to Alberta Health Ser vices. The Town established the Ambulance Ser vices in Ma rch 2008. However, it was felt that Alberta Health Services could better deliver this service to residents, and they took over the responsibility of ground ambula nce operations in V egreville.

CLIFF CRAIG Town Manager

MISSION, MANDATE & CORE VALUES

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V I S I O N S TAT E M E N T

C O R E VA LU E S

People our core, innovation our strength,

The values expressed here are the guiding principles

community our intention.

that help determine how the Town will operate, both in public and privately.

M I S S I O N S TAT E M E N T Embracing change to create an enhanced quality of life by engaging our citizens in building a

•

Adaptability

•

Teamwork

•

Inclusivity

•

Vibrancy

•

Integrity

vibrant community.

BOARDS AND COMMITTEES Assessment Review Board D. Berr y

Vegreville Regional Museum Society Board D. Berr y & T. MacPhee (A)

M.D. Minburn Foundation D. Berr y & A . Waters

CUPE Negotiating Committee J. Lemko, T. MacPhee & A . Waters (A)

CAO Evaluation Committee D. Berr y, T. MacPhee & T. Warawa

Vegreville Region Physician & Health Attration and Retention Committee A . Waters & M. Brodziak (A)

Council Renumeration T. Rudyk & A . Waters

St. Joseph’s General Hospital Community Board T. Rudyk

Vegreville Economic Development Advisor y Board M. Brodziak & T. Rudyk

Yellowhead East Health Advisor y T. Rudyk

Vegreville & District Chamber of Commerce M. Brodziak & A . Waters (A)

Solid Waste Committee T. Rudyk & T. Warawa

Community Futures Elk Island Region T. Warawa & J. Lemko (A)

Subdivision Authority M. Brodziak, J. Lemko, T. Warawa & D. Berr y (A)

NE Alberta Information HUB T. MacPhee & A . Waters (A)

Subdivision & Development Appeal Board A . Waters, T. Rudyk (A)

Vegreville Tourism Advisor y Board J. Lemko & T. Warawa

Land Use Committee J. Lemko, T. MacPhee, A . Waters & D. Berr y (A)

Municipal Emergency Advisor y Committee J. Lemko & T. Warawa (A)

Intermunicipal Development Plan Committee M. Brodziak, T. MacPhee & T. Rudyk

Vegreville & District FCSS Board J. Lemko & T. Warawa

John S. Batiuk Regional Water Commission T. MacPhee & M. Brodziak (A)

Vegreville & District Child Development Coalition A . Waters

Vermilion River Watershed Alliance D. Berr y

Vegreville Librar y Board J. Lemko

Northern Lights Librar y System Board D. Berr y & J. Lemko (A)

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ECONOMIC DEVELOPMENT

2019 was a year of change for the Town ’s Economic Development Department. The department hea d left his post in Ja nua r y, whi ch brought us our new Economic Development Manage r, Tom Koep. The depa rtments primary focus wa s to develop the Vegreville Economic Diversity Enhancement Plan (VEDEP).

This comprehensive

document identifies

four

main

Pilla rs,

Objectives, and over fifty

specific Action-items for the department.

P I L L A R 1: I N N O VAT I O N •

Support and grow the entrepreneur (start-up) community

•

Develop an incubator/co-working space

•

Attract and enable remote entre preneurs

•

Position Vegreville as a regional centre for innovation

P I L L A R 2: B U S I N E S S R E T E N T I O N , AT T R A C T I O N A N D I N V E S T M E N T •

Enhance overall business attraction programming

•

Continue to implement business retention and expansion programming and solutions

•

Initiate proactive investment attraction programming focused on key sectors - professional, scientific & technical ser vices, value-added agriculture, oil & gas manufacturing & ser vices, and hemp and cannabis industr y

PILLAR 3: LAND DEVELOPMENT •

Work proactively to fill retail gaps

•

Identif y, development, and promote available sites

•

Develop sites for investment

P I L L A R 4: R E S I D E N T I A L G R O W T H •

Ensure Vegreville’s asset s are understood and promot ed

•

Enha nce Vegreville’s qua lity of pla ce

•

Initiat e a resident attraction task f orce that engages and promotes the benefits of living in t he communit y

•

Grow Vegreville’s populat ion by 20% over the next 10 years

The task for the upcoming year is to start to implement an action plan that follows these four pillars. Many steps have already been taken or are being taken toward this goal. These steps include: 1. Working with existing and future Hemp related companies to attract them to the Vegreville area.

Through the efforts of Council, Administ ration and the Economic Development Advisory Board, we attracted Chromt ec to Vegreville, a CB D Oil processing company based in Calgary, that is currently in the applica tion process to obtain the nece ssa ry licenses to work in this fast moving Hemp indust ry.

They ha ve announced pla ns to expand once the licensing has been obtained, so look for good things

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from this company for years to come in Vegreville.

CHROMTEC FACILITY

2.

W orking with all levels of government to obta in the funds necessa ry to service industria l land in Vegreville. One of the impediments t o development in Vegreville (as identified in the VEDEP) is the lack of serviced industrial land, tha t this init iative hopes to address this need.

3.

W orking with I nnot ech to a ttract and foster an environment for innovation, especially in the value-a dded agricult ure and Hemp sectors.

4 Working with the local Chamber of Commerce and Community Futures to assist existing businesses that a re struggling in this current economy. This includes a business visitation progra m, networking events and soon to be a nnounced training sessions/lunch and learns.

5.

Updating and upgrading the Economic Development website and using a social media campa ign to drive traffic to the website. This site will focus on attracting new business investment, assisting existing businesses a nd att racting new residents to our wonderful community.

6.

Real Estate Inventory – we are in the process of completing a real estate inventory for all existing propert y, both commercia l and industrial, as well as any existing land that could be developed for retail or industrial purposes – this will a llow a quick response to anyone inte rested in locating in Vegreville with their business.

7.

Shop loca l campaign – the downturn in the oil and ga s sector combined with several years of poor crop yield has left Vegreville in a major downt urn of its economy. This is affecting most if not all of the busine sses in town, especia lly the retail and hospita lit y (restaurants, hotels, etc.) sectors. A major source of revenue for these businesses are local and regiona l shoppers. If we can influence pe ople to do more shopping locally, it will be a major help to loca l businesses.

8.

Retail a ttraction – in order to be a regional shopping destination, it is impera tive that we attract more retail to offer more shopping options t o people, especially to fill in ga ps t hat exist in the current market. By using the recently completed Ret ail Gap Analysis, we can identify businesses tha t we can target to attract to Vegreville.

9.

Developing a marketing campaign/st rategy for Business Attraction, Existing Business Support and Resident At traction.

These are just the main init iatives being worked on, as ma ny other aspects of Economic Development are being worked on da ily. These include developing a network in the region to support regional development, worki ng with loca l businesses to see if we can help support them in their efforts to gro w, working with loca l farmers to consider t heir opt ions in the Hemp Industr y, a nd working with entrepreneurs; especially in the va lue-added agricult ure and H emp fields, and just genera lly creat ing an environment that is supportive of businesses in Vegreville.

COMMUNITY SERVICES Community Services is a large and diverse d epartment here at the Town of Vegreville. The department works tirelessly to ensure our residents have access to recreational, socia l, and cultural activities, while protecting their well-being a nd day-to-day life in Vegreville.

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MUNICIPAL ENFORCEMENT

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The Municipal Enforcement Department had another ver y productive year with many occurrences and complaints being successfully concluded.

Community Peace Officers met with propert y owners and enga ged wit h residents to boost fa miliarity with our Communit y Sta nda rds Bylaw. I n total, 155 property owners received cleanup notices and 45 snow removal not ices. Overall, complia nce from property owners was good.

Officers have been dealing with three homes that have been reported as potent ial ca t house s. The Alberta S.P.C.A. a ttended and removed all t he cats that they could locate. Numerous property clea nup not ices were issued to the owners which resulted in the properties being cleaned to an a cceptable standa rd. The cats that were seized were taken back to their facilities, reducing the burden and cost to our anima l shelter.

Considera ble t ime has been spent working with the Prairie Tails Animal Rescue volunteers getting cameras insta lled, organiz ing t he kennels, protocols, procedures, picking up donated food weekly from Wal-Mart, picking up st ray animals, finding homes for orpha ned animals, assisting with fundra ising events a nd finding a suitable locat ion for a metal stora ge facility put in pla ce at public works. The de dication from the volunteers ha s been exceptional and t he Town of Vegreville is ver y fortunate to have such a dedica ted group spearheading t his organiz ation.

Approximat ely 210 cats and 28 dogs were housed PEACE OFFICER GARRET PEREPELUK CHECKING A STRAY CAT FOR A MICROCHIP.

in the Animal Shelter in 2019.

The Municipa l Enforce ment department switched to the Alberta First Responders R adio Communica tions System, which greatly improved the department's operational efficiencies.

The conditions for Scentless Cha momile were optimum in 2019, which resulted in a huge influx of the weed growing on private properties and town-owned lots. A ver y a g gressive approach was taken to eradicate the spread and grow t h of this noxious weed in a ccordance with the Provincia l Weed Control Act. Property owners were very compliant, which resulted in them spraying and cut ting t he problem areas.

Community Pea ce Officers also host ed an ATV Sa fety presentation for approximately 20 students in our After-Hours Program. At the request of the schools, Officers a lso conduct ed cyber-bullying, teen dating, and domestic violence presentations to the schools in Vegreville a nd the Rotary Club.

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FIRE PROTECTION & SAFETY 2019 was again a nother great yea r for the Vegreville Fire Department. There was a significa nt increase in public education, especially in the area of public relat ions. Lea dership development, personal safet y and training cont inues t o be the primary focus for the department, as it is around t he province for smaller municipa lit ies. Our tra ining office rs are setting a high sta nda rd for training within the d epartment.

2019 also saw the department sending Firefighter s along with the Count y of Minburn to a ssist in the firefight ing efforts in High Level.

INCIDENTS In total the department received 184 calls, which made for one of the busiest years on record. Among these calls were responses to carbon monoxide, power lines, environmental hazards and ruptured water pipes.

Fires

32

31

Medical

26

Alarm Calls

81

Misce llaneous

14

Stand-downs (false alarms)

(42)

Total

184

C A L L S BY A R EA

0

36

72

108 Rural

Town

144

180

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INSPEC TIONS In accordance with the 2019 Fire Code, we conduct ed: Fire Pit Inspections

29

QMP (Business) Inspections

60

Fire Drills (Review)

12

Total

101

S I T E E V A L U AT I O N S A N D E M E R G E N C Y R E S P O N S E P L A N S R E V I E W Inspections and pr e-fire pla ns a re initiated and updated as needed. Periodically throughout the year, pre-fi re pla ns are shown to our members along with a scenario for training discussion. This giv es members an oppor tunity to view a potential incident on paper and work through t he potential hazards and d ifficult ies they may face. All pre-fire plans a re kept in paper copy a nd are availa ble at all times on the d ispa tch computer. In 2019, we completed site evaluations a t the following locations: •

Cargill Grain

•

Walmart

•

Richardson Pioneer

•

RJ V

•

Assisted living facilities required by Alberta Standards & Accommodations Licensing: Heritage House, Homestead Lodge, Vegreville Care Center, St. Micheal's Manor, and Century Park

•

A.L. Horton School, St. Martin’s School, St. Mary ’s High School, and Vegreville Composite High School

EQUIPMENT The Volunteer Fire Department (VFD) cont inued its ma intena nce program on a ll of the equipment owned and operated by the VFD. Not able maintenance included: •

Annua l hose test ing conducted in February as part of NFPA 1001 training

•

Self-Conta ined B reathing Appa ratus Maintenance, Occupational Health and Safety and National Fire Protection Association compliance

In the 2019 operationa l plan, an equipment team was developed with the VFD members to assist in ensuring t hese monthly a nd annual ta sks are completed. Ut ilizing members of the depart ment offers a greater sense of pride a nd ownership in t he equipment.

The Municipal Services depa rtment continues t o work closely with the VFD on a ppa ratus maint enance and repair. Our depa rtment prides it self on the fleet of emergency appa ratus we operate and main t ains a st rict maintena nce program in conjunction with Municipal Services. This will ensure Town owned emergency services equipment is utilized for it s maximum lifespan. The new 2019 Rapid Response unit a rrived from H UB Fire Trucks in Octobe r. This was purcha sed by the Count y of Minburn at a cost of $200,000. The mult i-use unit will encompas s medical first response, light vehicle rescue and wildfire response.

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TRAINING CENTRE

The Fire Depa rtment ha s continued to raise funds for t he training center. The 2019 Raffle was sold out and funds ra ised were put t owards the new facility. We have a lso received many other generous donations from businesses and members of the community.

TRAINING Weekly training night s are held every Wednesday, 7:00 PM to 9:00 PM, at the Emergency Services Building with additional training nights offered as required. With the inclusion of the crew competition additional traini ng highlights were: • Traffic Cont rol/Fla g Training for Emergency Scenes

• Ice/Cold Wat er Rescue

• Technical R escue Team Training

• Wildland 1051

• Rail & Pipeline Safety

• Live fire training at burn tra iler

• Search & Rescue The J unior Firefighte r program, a program designed to encoura ge young people from the two High Schools in Vegreville to become members of our VFD cont inues to be an integral pa rt of our operat ions. This program fluct uates from yea r to year with successful a pplicant s. 2019 saw one student graduate from high school a nd continue to be a member of the department. The ot he r is an administ rative student who assist s wit h general office dut ies.

P U B L I C R E L AT I O N S The department has cont inued to be involved in va rious Communit y Events including t he Texas 4000 – hosting a nd bille ting t he group, Legion BB Q – a ssist with monthly stea k supper, Bridge Building Event, Musc ular Dyst rophy Boot Drive, P.A.R.T.Y Program wit h St. Ma ry ’s & Vegreville Composite H igh School, and the Fire Fighter Challenge in Calga ry.

PERSONNEL While most paid on-call/voluntee r departments in the province struggle with personnel issues, the VFD has been very fortunate to employ some of t he best and most dedica ted members that this province has.

From the newest members to the experienced senior officer/chiefs, the VFD has a core group of highly trained, highly skilled first responders that protect the citizens of Vegreville and County of Minb urn. The VFD has a compliment of 45 members which includes; 1 Chief, 2 Deputy Chiefs, 3 Ca ptains, 4 Lieutenants, 23 firefighters and 1 junior firefighters.

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TOURISM It was an excit ing yea r for tourism in Vegreville.

PA I N T T H E T O W N

In 2019, Tourism beca me a stand-a lone port folio through the creation of the Tourism, R ecreation & Culture Coordina t or position a nd the establishment of the Vegreville Tourism Advisory Board (VTAB). This accomplishes one of Council’s strategic priorit ie s of promoting our communit y a s a cu lt ura l tourism destinat ion by enhancing visitors experience . Tasked wit h providing advice, guida nce and recommendat ions in area s that benefit the overall tourism prosperity of t he region, the VTAB represents industry stakeholders, which crosses municipal borders.

Major initia tives in 2019 included:

BORROW-A-BIKE Designed to encoura ge tourists to ext end their visit while support ing a healthy lifest yle a nd t he beaut iful t rails t ha t connect our pa rks and downtown core, the Town purcha sed five bikes for free use at the Visit or Information Cent re.

BONNIE CONLY’S ’HOPE AND FREEDOM’

Intended to bolster sense of communit y a nd beaut if y our blank ca nva ses with public a rt, Paint the Town led to the development of t wo beautiful murals paying homa ge to our Ukrainia n heritage and Vegreville’s world famous P ysanka. Artist Brie Adkins of Entwist le, AB displayed her talents in the vignette mural ‘Learning to Share’ while Bonnie Conly ca me from Sa skatoon, SK to share her persona l histor y in t he floating vinok mura l ‘Hope and Freedom’.

EXPLORE VEGREVILL E To support t he communit y in regiona l tourism development a nd ma rketing, the Town launched Explore Vegreville on Facebook, Insta gram and Twit ter. It is used t o highlight all the k ey amenities, events, activities a nd economic dra ws that height en our re giona l profile as a tourism destina t ion, while fostering relationships within the community through the promotion of nea rly 70 regional pa rt ners and businesses t o da t e.

A BIKE FROM THE PROGRAM PICTURED IN FRONT OF THE PYSANKA

V I S I T O R I N F O R M AT I O N C E N T R E

A R T WA L K 2 0 1 9

The trained staff at Vegreville’s Travel Alberta

In pa rtnership with t he Vegreville Visua l

accredited Visitor Information Cent re engaged

Artist s, the program was created to promote t he art in our community while encouraging residents a nd visit ors to enjoy our hist orical downtown. This successful project ra n from June through September, with 26 businesses and organiza tions participa ting in t he initia tive.

with thousa nds of visitors t hroughout t he peak tourism season, offering travel advice, campground a nd concession services, and souvenir sales. As the greet ing faces of our community, the staff sha red their pride and knowledge of our region with v isit ors over the summer months.

17

V EG R E V I L L E’S V I S I TO RS BY N U M B E R Number of people who visited t he Elks/Kinsmen Pa rk

25,000

Number of people ca me in our Visitor Information Cent re (VIC)

10,000

Number of visitors who received help from VIC sta ff

1,900

Number of phone ca lls received at the VIC

400

Number of ca mping nights purchased a t the Vegreville Municipa l Ca mpground

700

W H AT B R O U G H T V I S I T O R S T O V E G R E V I L L E Over the peak of the tourism season, 1,545 visitors at to the VIC were asked “what brought you to Vegreville,” their a nswers were:

55% C AM E FO R

THE PYSANKA

16% CA ME TO

SEE FRIENDS & FAMILY

10%

19%

OUR EVENTS

OTHER/ WORK

CAME FOR

CAME FO R

20 19 E V E N T S FEBRUARY

FCSS Family Day

MARCH

Wendy Brook Music Festival, Vegreville’s Got Talent (VegMin), Vegreville Centennial Library Play Fundraiser, Spring Registration Night

APRIL

Agri-Business Appreciation Breakfast, FCSS Volunteer Appreciation Event, Bunny Hop Family Dance

MAY

Vegreville Food Bank 5K Fun Run, 8th Annual 3D Archery Fun Shoot (Vegreville Wildlife Federation)

JUNE

ArtWalk 2019 (Vegreville Visual Artists), Pysanka Park Markets (Vegreville Agricultural Society), Spring Chuckwagon & Chariot Races (Vegreville Agricultural Society), FCSS Kick-Off to Summer Event, Show & Shine Father’s Day Event (Vegreville Agricutural Society), Lemonade Day (Community Futures Elk Island Region), Lakeland Cup (Vegreville Minor Soccer Association), Community Wide Garage Sale

JULY

Community Canada Day Celebrations (Vegreville, Lavoy & Mundare), Vegreville Pysanka Festival (Vegreville Cultural Association)

AUGUST

Vegreville Deerland Country Fair (Vegreville Agricultural Society), Vegreville Bunnock Tournament, Movie Night Express Community BBQ & Outdoor Movie

SEPTEMBER

Fall Registration & Information Night

OCTOBER

Vegreville & Area Annual Awards Gala

NOVEMBER

Christmas in November Arts, Crafts & Foods Farmers Market, Annual Home Business Trade Show, Christmas Light Up Parade

DECEMBER

Reindeer Lane

PARKS,RECREATION & FACILITIES

18

The Parks, Recreation & Faciliti es department strives to keep our parks and facilities looking their best. We pla ce great importance on the proper maintenance and care of Town-owned assets to ensure the safety and enjoyment for everyone who uses them. Our parks and facilities crews are committed to the well-being and prosperity of the Town and hold themselves to a high standard to ensure that everyone gets to enjoy the best of what Vegreville has to offer.

A Q U AT I C & F I T N E S S C E N T R E S TAT S

500

2217

Hours of Public Swimming.

Memberships

sold.

1277

Reg istrations in swimming lessons.

15

Schools came for le ssons or activities.

THE TOWN WAS ABLE TO PURCHASE THE CLIMBING WALL THANKS TO A DONATION THE TOWN RECEIVED FROM THE KINSMEN CLUB OF VEGREVILLE.

ARENA HIGHLIGHTS •

In 2019, the Arena was renamed the Wally Fedun Arena

•

Over 200 youth, aged 3 to 17 registered in minor hockey and/or skating clubs

•

Hockey Alberta hosted the Prospects Cup tr youts in spring which brought 150+ junior players from across Northern Alberta to Vegreville

•

The Edmonton Oilers hosted a 3-day camp for youth at our Arena in April, which brought youth from all over Alberta to Vegreville

•

Hockey Alberta hosted the Alberta Winter Games tr youts in our Arena, which brought 150+ junior players to Vegreville

•

The Vegreville & District Minor Hockey Association hosted 3 tournaments in Vegreville for Novice, Atom, and Peewee ages

19

PA R K S H I G H L I G H T S

Maintained 14 km of trails

Mowed 180 hectares

Restocked the po nd a t Elks

throughout the year.

of grass.

Kinsmen Park & Rainbow reservoir.

N O TA B L E P R O J E C T S •

Elks Kinsmen Pa rk bridge repla cement

•

Cement pad repla cement at Elks Kinsmen Pa rk

•

New dugout and ba ckstop installed at Baseba ll Dia mond #3

•

New climbing wall insta lled a t Aquatic Centre

•

New flooring installed at the Curling Rink

•

Major ba throom renovation a t the Visitor Infoma tion Centre

•

New front steps insta lled at the Post Office

ELKS/KINSMEN PARK BRIDGE REPLACEMENT

OUTDOOR ICE RINK

FAMILY & COMMUNITY SUPPORT SERVICES (FCSS)

20

W H AT W E D O Vegreville & District FCSS is a vital resou rce in the social and economic health and well-being of the community. We work hard to build and maintain the Town of Vegreville’s community development goals by: •

Improving access to and supporting individuals to navigate the community and the system to find programs and ser vices.

•

Enhancing welcoming and inclusive initiatives through connection and inclusion. Citizens are connected to one another, and their differences are valued and respected.

•

Increasing affordability – individuals have an increased capacity to meet their basic ne eds. Programs, sevices and events are accessible to ever yone.

•

Increasing safe and caring practices (physical, emotional, spiritual and mental).

We operate based on four main priorities. The first is connection and inclusion, we stive to build local connections that bolster community pride a nd positive attitudes. The second, is enhancing people’s coping skills like financial empowerment and mental health. Our third priority is youth engagement, by involving youth to create po sitive social change they ’re involved in decisions that affect them and others. Finally, our last priority is transportation, we endevour to support community members develop new approaches to publ ic or private transportation, while addressing the lack of transporation options in small municipalities.

SERVICES WE OFFER •

Information & Referral

•

Community & School Presentations

•

Supports & Navi gation - One-on-one by drop-in or

•

Mobile Office at Senior ’s Facilities

by appointment

•

Outreach

•

Help Line Posters

•

Welcome to the Community Packages

•

Community Ser vices Director y

•

Assistance with Elder Abuse Situations

•

Community Summer Program Guide

•

Leadership Development for Community

•

Coordination of Vegreville Interagency

•

In-kind Supports for Community Devel opment

Volunteers •

JumpStart & KidSport Applicatio ns

21

PROGRAMMING WE OFFER •

Siz zlin’ Summer – Day Camp

•

Parent Link Centre First Years Network

•

Junior Leaders – Youth Leadership Development

•

Meals on Wheels (MOW)

•

Youth M aking A Change (YMAC) - Youth

•

Community Volunteer Income Tax Program

Leadership Development •

B abysitt ers Course

•

After Hours – Yout h Outreach Program at the Schools

MAKING A DIFFERENCE TOGETHER

(CVITP) •

Subsidized Housekeeping

•

Community Counselling

•

Senior ’s Assistance

I M PA C T S T H AT L A S T

Throughout t he year 339 volunteers dona ted a total of 3108 hours!

Family Events

2340

ser vices were provided to

752

ser vices were provided to

adults and seniors.

Jr. Leaders

Program Party

children, youth, and families.

Seniors Day CVITP MOW

RECOGNITION Lisa Topilko received the Family and Communit y

3878

people were helped by phone and 2496 in person at our office.

Support Services Associa tion of Alberta 's Outstanding Individual Achievement Award from the Province of Alberta for her significa nt professiona l contributions that helped strengthen the social fa bric of Vegreville.

2762

599 LISA TOPILKO RECEIVING THE FCSSAA OUTSTANDING INDIVIDUAL AWARD FROM VICKI VAN VLIET VAITKUNAS.

meals were delivered through our MOW Program.

tax returns were filed through our CVITP.

INFRASTRUCTURE, PLANNING & DEVELOPMENT

22

The Infrastructure, Planning & Development department carries several robust responsibilities that contribute to the ongoing growth and operation of our Town. The department oversees roads, utilities, waste management, fleet services, the Riverside Cemetery, the Vegreville Regional Airport, the Vegreville Sanitary Landfill, the Vegreville Materials Recovery Facilit y, and overall la nd use pla nning a nd development act ivities in the Town of Vegreville.

23

DEVELOPMENT & BUILDING Development permits and building permit s are required for most new developments and changes of land use. A development permit ensures t hat development in the Town of Vegreville meets the requirements of the Town’s Land Use Bylaw and the building permit ensures that the development meets the requirements of the Alberta Building Code.

Our 2019 permitting data below captures ever y thing from fences and decks to commercial development.

DEVELOPMENT PERMITS ISSUED

$1,200,000

VA L U E O F D E V E L O P M E N T PERMITS ISSUED

26 $1,000,000

$800,000

19 17

13

$600,000

13

$400,000

8

7

8 5

5

6

7 4

Jan Feb Mar Apr May Jun

Jul

Aug Sept Oct

Nov Dec

BUILDING PERMITS ISSUED

$200,000

0

$800,000

Jan Feb Mar Apr May Jun

Jul

Aug Sept Oct Nov Dec

VA L U E O F B U I L D I N G PERMITS ISSUED

$700,000 $600,000 $500,000 $400,000 8

8 7

$300,000 5

4

4

$200,000

4

3 1

1

1

0 Jan

Feb Mar Apr May Jun

Jul

Aug Sept Oct Nov Dec

$100,000 0

Jan Feb Mar Apr May Jun Jul

Aug Sept Oct

Nov Dec

24

BUSINESS LICENSING O ur Business Licenses are issued annually and

I n fo r m at i o n co l l e c te d i n t h e l i c e n s i n g p ro c e s s go e s

expire on December 31. All businesses operating

to wa rd s p o p u l at i n g ex te r n a l re s o u rc e s l i ke o u r

within the corporate limits of the Town of

b u s i n e s s d i re c to r y, w h i c h h e l p s p u t s p ro s p e c t i ve

Vegreville must purchase/renew their l icense by

c u sto m e rs i n to u c h w i t h t h e s e r v i c e s o u r

Febru ar y 28 of each year.

b u s i n e s s e s o ffe r.

Business Licenses are a way we track the economic prosperity of businesses, they are vital to the collect ion of business information that we use to adjust our ser vices and meet the needs of our local economy. There are several different types of business licenses in Vegreville such as Resident - Commercial, Non-Resident Commercial, Seasonal Businesses, Non-Resident General Contract, and Home - Minor and Major.

THE TOWN WELCOMING TWO HILLS PIZZA & WINGS GRAND OPENING.

Town Council believes in creating a welcoming environment for our businessess, where new businesses a re welcomed with open a rms, a nd where our older, more established businesses are celebrated for t heir va lued contributions to the Town of Vegreville through the Busine ss Recognit ion Progra m.

For a complete list of businesses in Vegreville MEMBERS OF COUNCIL RECOGNIZING FJELLSTROM GREENHOUSES VEGREVILLE FOR 30 YEARS OF SERVICE IN VEGREVILLE AND AREA.

check out our B usiness Director y on our website.

N E T N E W B U S I N ES S L I C E N C ES BY Q UA RT E R

Q1

-21

17

Q2

7

Q3

13

Q4 0

MUNICIPAL SERVICES & PUBLIC WORKS

25

P ROJ EC T S C O M P L E T E D I N 2019 •

The final lift of asphalt completed on 50th Street bet ween 45th Avenue and 48th Avenue was completed in August . This project started in 2018.

•

Full reconstruction of 62nd Street from Highway Avenue to Industrial Avenue, which included a new asphalt surfa ce.

•

We worked collabora tively with ATCO to complete lane reconstruction to 47A St reet and 49th St reet bet ween 50th Avenue and 49th Avenue, which included storm-wa ter installation and sub-base repairs wit h an asphalt ove rlay and the moving of a gas line.

•

Storm-water and sanitary sewer repairs, valve refurbishing and a full reconst ruction, including pavement repa irs were completed near the area of 47A Street to 50th Avenue nea r the Social Centre.

WASTE & RECYCLING The Town of Vegreville’s Recycling Program diverted 1,411,000 pounds of recyclable material from the Landfill in 2019. That ’s the equivalent of 35 tractor-trailer loads.

CORPORATE SERVICES The Corpora te Services department is responsible for all fina ncial informat ion for the Town of Vegreville, including operating and capit al budgets a nd pla ns, financial sta tements, property taxation a nd utilities.

26

27

FINANCIAL STATEMENT DISCUSSION & ANALYSIS The 2019 Annual Report of the Town of Vegreville (t he “ Town”) provides information to all members of the public a bout the Town’s 2019 financial performance. The Annual Report includes the Town’s consolidated fina ncia l statements prepa red by management in a ccordance with Canadian Public Sector Accounting Standa rds.

The Town’s auditor, Wilde and Company, Chartered Professional Accountant s ha s audited the 2019

consolidated fina ncia l statements and their independent Auditor ’s Report is included in this Annua l Report.

The following Financial Statement Discussion and Analysis (FSD&A) should be read in conjunction with the audited consolida ted fina ncial st atements.

The consolidated fina ncia l statements consist of:

C O N S O L I D AT E D S TAT E M E N T O F F I N A N C I A L P O S I T I O N T h i s state m e nt i s a s n a p s h o t o f t h e To w n ’s m u n i c i p a l e q u i t y. M u n i c i p a l e q u i t y i s t h e exc e s s o f a s s et s o ve r d e b t a n d o t h e r l i a b i l i t i e s .

C O N S O L I D AT E D S TAT E M E N T O F O P E R AT I O N S T h i s state m e nt co n s i st s o f reve n u e ref l e c t i n g t h e o p e rat i n g a n d ca p i ta l f u n d s t h at we re a c q u i re d a n d h o w ex p e n s e s we re a l l o cate d , i n c l u d i n g t h e a n n u a l co st fo r o w n i n g a n d u s i n g ta n g i b l e ca p i ta l a s s et s ( d e p re c i at i o n ) .

C O N S O L I D AT E D S TAT E M E N T O F N E T D E B T T h i s state m e nt re co n c i l e s t h e exc e s s o f reve n u e s o ve r ex p e n s e s to t h e n et f i n a n c i a l a s s et s ( a s s et s t h at a re n o t fo r co n s u m p t i o n i n n o r m a l d ay- to - d ay o p e rat i o n s ) . A n et d e b t p o s i t i o n i n d i cate s t h e To w n ’s l i a b i l i t i e s exc e e d i t s ava i l a b l e f i n a n c i a l a s s et s a n d m ay b e re q u i re d to ra i s e a d d i t i o n a l f u n d s t h ro u g h u s e r fe e s a n d /o r taxe s to m e et i t s l i a b i l i t i e s a n d o b l i gat i o n s i n t h e f u t u re .

C O N S O L I D AT E D S TAT E M E N T O F C A S H F L O W S This statement outlines the sources and uses of cash and cash equivalents (short-term investments).

T h e s o u rc e s a n d u s e s o f ca s h a re p re s e nte d i n fo u r d i ffe re nt cate go r i e s : o p e rat i n g , ca p i ta l , i nve st i n g a n d f i n a n c i n g ( n ew d e b t i s s u e d a n d d e b t re p ay m e nt s ) .

FINANCIAL HIGHLIGHTS

28

•

Introduction of a Sma ll Business Tax Rate

•

Launch of a new Cemetery Management System

•

Lease and sale a greement negotiated wit h Chromt ec CBD Inc for our property located at 6620 Highway 16A

•

Transitioned the Ambula nce Service to Alberta Health Services

•

Completed the new RCMP Detachment and fina l debenture dra w of $2,003,000

•

Completion of ca pita l projects tota lling $1,900,000

D u r i n g 2 0 1 9 , t h e To w n re a l i ze d a n u n re st r i c te d s u r p l u s o f $ 2 , 1 6 9 , 9 1 5 ( 2 0 1 8 - $ 5 2 8 , 2 3 0 ) .

R E C O N C I L I AT I O N O F B U D G E T S U R P L U S T O A C T U A L S U R P L U S Budgeted operatin g surplus

$ 1,169

Revenues earned in excess of budget

227,626

Expenditures incurred less than budget

515,730

Transfers to operating fund in excess of budget

162,464

Capital funded from operations in excess of budget

(629,199)

Debt repayment in excess of budget

(110,875)

Debenture principal received in excess of budget

2,003,000

Actual operating surplus 2,500,000

$

2,169,915

R E C O N C I L I AT I O N O F B U D G E T S U R P L U S T O A C T U A L S U R P L U S 2,169,915

2,000,000

1,500,000 2,003,000 1,000,000 515,730 515,730 500,000 227,626 0

1,169 (110,875)

(500,000) (629,199) (1,000,000)

Budgeted Surplus

Revenues

Expenditures

Transfers to Increase

Debt Repayment Decrease

Funded Capital

Debenture Proceeds

Actual Surplus

Total

T h e To w n w i l l co nt i n u e to m o n i to r o u r f i n a n c i a l p e r fo r m a n c e a n d st rate g i e s o ve r t h e 2 0 2 0 o p e rat i n g b u d get p e r i o d to a d d re s s p o te nt i a l g ro w t h a n d i n c re a s e d d e m a n d fo r s e r v i c e s . We a l s o h ave to b a l a n c e t h at w i t h o t h e r e co n o m i c i m p a c t s t h ro u g h o u t t h e p ro v i n c e t h at m ay affe c t t h e o p e rat i o n s o f t h e To w n .

DISCUSSION OF OPERATIONS BY FUNCTIONAL AREA

29

The following is an analysis of the 2019 operations by functional area (department) for the year ended December 31, 2019. As noted on the previous page, the Town ended the year with an unrestricted operating surplus of $2,169,915.

P R O P E R T Y TA X E S Net Municipa l Property taxes increased by 1.3% from 2018 a s a result of an increase in the overall ta x rates. As compared to budget, net municipal property taxes were slightly less due to changes in assessment after the tax levy was completed.

In 2019, Town Council created a non-residential small business tax cla ss with a tax rate that was 15% lower than the tax rate for other non-residential business. This resulted in a total savings of approximately $244,000 for the Town’s small businesses. Based on the average small business assessment of $462,865 in 2019, the introduction of the small business tax rate would have resulted in savings of approximately $1,325.

GENERAL GOVERNMENT SERVICES General government ser vices consist of the following: Council; Corporate Ser vices; Legislative Ser vices, Economic Development; and other sources of una llocated revenues a nd expendit ures.

Operating revenues in General Government Services were approximat ely $436,000 over budget in 2019.

Government transfers for operating were $177,850 over budget. Of this amount, $125,000 related to recognizing grant revenue for complet ion of the affordable housing project. The remaining amount relates to timing of receipt of the 2018 MSI Operating grant in 2019. Other revenues were over budget by $275,000. Contributing to this increase is unbudgeted revenue of $54,000 from the affordable housing project private partner for its sha re of the costs; recognition of tax sale surplus funds of $80,000 that transitioned to the Town after 10 years; increased penalties and costs on taxes of $87,000 and increa sed interest earnings of $64,300.

Expendit ures in general government ser vi ces were over budget by $131,500. Lower salaries, wages and benefits, a nd purchased goods and materials offset b y increased cost s for contracted a nd general ser vices, and unbudgeted costs related to the completion of the affordable housing project resulte d in t he increased expense in general government services. The unbudgeted costs related to the affordable housing project were completely funded by government grants and private investment. During 2019, the Town continued in its efforts to improve its IT infrast ructure, which resulted in increa sed costs in cont racted and general services.

PROTEC TI VE S ER VICES During 2019, the Town divest ed of its a mbul ance service to Alberta Health Services.

Protective Services consists of sa fety services, policing services, fire protection, emergency management, ambulance services (until divestiture da te) and municipal enforceme nt services.

30 Revenues for protective ser vices were under budget by $772,000 primarily as a result of the divesture of the ambulance ser vice in mid-2019. The net operating revenue of the ambulance was $700,000 below budget and was offset by increased revenues in policing as a result of higher than expected provincial fines.

Expenses for protective ser vices were lower than budget by $927,000. As a result of the divestiture of the ambulance ser vice, the net operating expenditures of the ambulance ser vice were $699,200 below budget.

In addition, policing costs were $147,900 below budget due to lower than budgeted costs related to the RCMP contract. Fire ser vices costs were approximately $84,800 below budget, due to lower than expected wages and benefits as a result of a vacancy for fire chief for approximately 6 months and lower than expected call volume resulted in reduced firefighters allowance for volunteer firemen.

PA R K S , R E C R E AT I O N A N D C U LT U R E Parks, Recreation and Culture ser vices consist of Parks and Recreation, Tourism, Museum Operations and Librar y operations.

Revenues for Parks, Recreation and Culture were approximately $87,000 greater than budget. Government grant revenue was approximately $49,000 over budget of which $40,000 relates to recognition of grant revenue for the Recreation Master Plan, wit h the balance from the County of Minburn contribution. In addition, Parks, Recreation and Culture received $15,000 from a local community group for the climbing wall installed at the aquatic centre and $25,000 from a private donor for maintenance at the arena.

Expenditures were approximately $143,000 greater than budget primarily due to higher wages and benefits, increased costs for contracted and general ser vices and materials, goods, supplies and utilities.

Wages and benefits increased as a result of severance costs related to termination of a long-time employee. Contracted and general ser vices expenditures increased as a result of costs associated with the Recreation Master plan, the increased costs were fully funded by a provincial grant. Costs for materials, goods, supplies and utilities increased as a result of repair work on the concrete base around the P ysanka in the Elks Park. These additional costs were fully funded by a transfer from the Town’s general operating reser ve.

FA C I L I T I E S The facilities department consists of all the Town owned buildings.

Revenues for the Facilities department exceeded budget by $472,000. Prior to 2019, the Town had negotiated a sale agreement for its building located at 6620 Highway 16A which was to close on December 31, 2018. Due to u nforeseen circumstances the purchaser requested an ex tension to March 31, 2019. The Town charged the purchaser interest on the purchase price and received approximately $70,000. In March of 2019, the purchaser abandoned the agreement and forfeited its deposit of $215,000. Subsequently, the Town leased the property to Chromtec CBD Purification Inc. in the fal l.

Completion of the RCMP detachment resulted in an adjustment to rent paid by the RCMP for occupancy.

As mentioned earlier, during 2019 the Town divested its operation of the Ambulance ser vice in June. To assist AHS in the transition period the Town agreed to lease space in its Emergency Ser vices Building to AHS until December 31, 2019. The Budget for 2019 included rent only for the period until June 30, 2019.

Chromtec, the RCMP and AHS accounted for the increase.

31

Expenditures for the Facilities Department exceeded budget by $401,000. The increase was a result of increased wages and benefits, due to severance costs related to termination of a long-time employee, increases in contracted and general ser vices and materials, goods, supplies and utilities.

During 2019 budget deliberations, no amounts were budgeted for costs related the facility located at 6620 Highway 16A as a result of the sale agreement. As a result of the purchaser abandoning the agreement, and preceding the l ease with Chromtec, the Town incurred significant additional costs for repairs to the facility, general operating costs and interest on long-term debt. Together, these accounted for the increase in costs for contracted and general ser vices and materials, goods, supplies and utilities the facilities department.

These additional costs were funded from transfers from general operating reser ves.

COMMUNITY SERVICES Community ser vices consist of Family and Community Support Ser vices (FCSS), Community Ser vices Administration and Public Health.

Community Ser vice revenues and expenditures approximated budget for 2019.

PUBLIC WORKS Public Works consists of Roads, Municipal Properties, Airport Operations, Storm Sewer ser vices and Cemeter y Operations.

Revenues for Public Works were approximately $450,000 over budget, which is primarily the result of higher provincial grant revenues for capital projects. The increase in the provincial grants relates to costs associated with adding an additional capital project after the capital budget was passed.

Capital projects carried for ward from 2018 and completed in 2019 included: (i) the replacement of cast iron sanitar y sewer and main ser vices on 50 th street, from 45th avenue to 48th Ave.; and (ii) Major lane repairs and storm sewer construction between highway 16A and 49th Ave, from 47A Street to 49 street.

Costs for completion of these projects amounted to $579,000 and were completely funded from provincial capital grants.

Capital projects budgeted for and completed in 2019 included 47A Street and 49 Ave reconstruction. Costs for these projects were estimated to be $1,239,500 in public works. The final project cost was $1,008,000 and was completely funded by provincial capital grants.

An ad ditional capital project for reconstruction of 62 Street from HWY Ave to Industrial Ave was added after the capital budget was passed with an expected cost of $370,000. Actual costs for this project were $324,000 and was completely funded by provincial capital grants.

Operating expenditures in Public Works, excluding the costs associated with the above noted capital projects were comparable to budget

UTILITIES Utilities consist of Water Supply and Sanitar y Sewer Operations.

Revenues for Utilities were approximately $61,000 lower than budget with sales of water $57,000 lower

32

than budget. The decline in water sales is primarily due to technical issues with the Town’s water meters which are being rectified.

Expenditures for the Utility department were comparable to budget.

M U N I C I PA L S E R V I C E S Municipal Ser vices consist of fleet ser vices, solid waste collection, landfill operations and recycling operations.

Revenues for Municipal Ser vices exceeded budget by approximately $42,000 largely as a result of an increase in landfill tipping fees. Expenses for Municipal Ser vices were approximately $25,000 below budget.

PLANNING & DEVELOPMENT Planning & Development consists of Planning & Development ser vices and Subdivision Ser vices.

Revenues were approxima t ely $22,000 over budget. The increase was a result of increa sed business license revenue an d recovery of costs related to a n environmental impa ct st udy on a ccept ing wast e from canna bis producers in our sewage lagoons.

Expenses for Pla nning a nd Development were a pproxima t ely $55,000 below budget.

FINANCIAL POSITION The financial position of t he Town improved during the year wit h the Town’s net debt position being reduc ed from $5.6 million to $5.2 million in 2019. The improvement is largely the result of an improved cash position offset by increased long-term debt as a result of t he fina l dra w on the debenture for the RCMP Detachment .

The net debt posit ion indicates tha t the Town does not ha ve sufficient fina ncial asset s to repay its fina ncia l lia bilit ies as a t December 31, 2019 . However, it is importa nt to note tha t the long-term debt of $12.6 million is not all current ly due and ha s scheduled repayment terms that stretch over the next 30 years. The Town’s debt repayment obliga tion at December 31, 2019 is approxima t ely $598,000. Adjust ing the fina ncial lia bilit ies to reflect the current portion of long-term debt as opposed t o the tota l long-term debt shows tha t t he Town has sufficient fina ncial asset s to sa tisfy it s current obligations.

F INANCIAL ASS ETS The Town’s tot al financial a ssets of $11.6 million increased by approximately $747,000 in 2019, which is primarily due to an increase in cash and cash equiva lents a nd investment s. This increa se is largely the result of t he receipt of the fina l RCM P Debenture draw of $2.0 million.

The Town uses invest ments to provide a return on public funds. These funds consist of reserves, capital

funds, Provincial grants and operating funds. Currently the Town has restricted reser ves and deferred

33

revenues totaling approximately $5.3 million, which is fully funded from available cash and cash equivalents and investments.

The investment activities of the Town are governed by the Municipal Government Act (MGA) and the Town invests only in qualified investments under the MGA .

The interest earned in 2019 on investments and cash and cash equivalents totaled approximately $159,000 in 2019 (2018 - $156,000). The Town’s average yield on investments and cash and cash equivalents averaged 2.0% (2018 – 1.7%).

LIABILITIES The Town’s 2019 total financial liabilities of $16.8 million increased by approximately $1.2 million compared to the prior year (2018 $15.6 mill ion) primarily due to an increase in debenture debt of approximately $1.5 million and an increase in the Asset Retirement Obligation for landfill reclamation costs of approximately $40,000. The increase in these liabilities was offset by decreased accounts payable and accrued liabilities, employee obligations and deferred revenues.

A C C O U N T S PAYA B L E A N D A C C R U E D L I A B I L I T I E S The accounts payable and accrued liabilities balance of approximately $1.8 million at the end of 2019 has decreased by $316,000 from the prior year balance. The change is the result of lower trade accounts payable at December 31, 2019 due to completion of the RCMP Detachment and all capital projects in 2019.

A C C R U E D E M P L O Y E E O B L I G AT I O N S The accrued employee obligation balance of $559,000 at the end of 2019 decreased $101,000 from 2018.

This is primarily due to changes to rules around carr ying for ward overtime.

DEFERRED REVENUE Deferred revenue is made up of contributions from other levels of government and other revenue deferrals.

The decrease of $15,000 is primarily due to timing of government contributions received versus the recognition of revenue based on eligibility requirements.

DEPOSIT LIABILITIES Deposit liabilities increased by $96,000 during 2019. The deposits held represent deposits for rental of Town owned facilities that will be recognized when the conditional requirements of the rental agreements are met.

LONG-TERM DEBT Long-term debt is used to finance capital projects. Self-supported debt is included in rate setting to ensure required repayments will be made. For tax s upported debt, the Town budgets repayments annually and the budgeted repayments are included in determining the property tax lev y for the year to ensure the repayments are made.

34

LONG-TERM DEBT (THOUSANDS)

15,000 12,000 9,000 6,000

0

2015

2016

2018

2017 Tax Supported

2019

Self Supported

Long-term debt increased in 2019 by approximately $1.5 million due to the final debenture draw of $2.0 million for the RCMP Detachment, funded solely by tax-supported debt, offset by scheduled debt repayments of $538,000.

Section 276(2) of the Municipal Government Act (MGA) and Alberta Regulation 255/200 establishes limits for municipal debt levels and annual debt ser vicing costs. The Town’s debt limit, as defined by legislation is calculated as 1.5 times the consolidated revenue net of capital grants revenues and contributed asset revenue.

$30,000

LONG-TERM DEBT AND LONG-TERM DEBT LIMIT (THOUSANDS)

$25,000 $20,000 $15,000 $10,000 $5,000 0

2015

2016

2018

2017 Long-term debt

2019

Long-term limit

The Town carries levels of debt well below t he legislated limit.

DEBT SERVICE AND DEBIT SERVICE LIMIT (THOUSANDS)

$5,000 $4,000 $3,000 $2,000 $1,000 0

2015

2016

2018

2017

Long-term debt

Debt Ser vice limit

The Town’s debt ser vice requirements are well below the legislated limit.

2019

NET DEBT

35

As disclosed on the Consolidated Statement of Financial Position, the Town has net debt of approximately $5.2 million (2018 - $5.6 million). The decrease in net debt primarily relates to improved net cash position due.

NON-FINANCIAL ASSETS Non-financial assets include tangible capital assets, inventories held for consumption, prepaid expenses and the non-current portion of land held for resale.

TA N G I B L E C A P I TA L A S S E T S The single largest item within non-financial assets is tangible capital assets with a balance of approximately $59 million at December 31, 2019 (2018 - $59.6 million) which represents a decrease of approximately $600,000.

Tangible capital as sets are assets that are held for use in production or supply of goods and ser vices, have economic lives that ex tend beyond one year and are not for sale in the ordinar y course of business. The most significant investments in tangible capital assets in 2019 include the RCMP detachment of approximately $2.0 million, capital works projects for sanitar y sewer replacement along three blocks of 50th street of approximately $260,000; major lane repairs and new storm sewer between Highway 16A and 49th avenue from 47A Street to 49 street of approximately $319,000; and road reconstruction projects totaling $1.3 million . In addition, that Town invested approximately $719,000 for vehicle and equipment replacement in 2019.

Amortization of tangible capital assets of approximately $4.0 million was recognized in 2019 to reflect the use and consumption of existing tangible ca pital assets. In addition, the Town disposed of Tangible Capital Assets with a net book value of $109,000.

OTHER NON-FINANCIAL ASSETS Other non-financial assets include inventor y for consumption, prepaid expenses and land held for resale.

Overall, other non-financial assets totalled $1.2 million at December 31, 2019, which was unchanged from 2018.

A C C U M U L AT E D S U R P L U S The accumulated surplus reflects the net economic resources that have been built up over time for the Town of Vegreville. As reflected in Note 16 to the consolidated financial statements, accumulated surplus consists of restricted and unrestricted amounts, including the unrestricted accumulated surplu s, reser ves, and equity invested in tangible capital assets.

As at December 31, 2019, the accumulated surplus totaled $55.0 million, which is a decrease of $200,000 from the prior year.

Following is a breakdown of accumulated surplus for the last five years:

36

A C C U M U L AT E D S U R P L U S ( T H O U S A N D S )

$60,000 $50,000 $40,000 $30,000 $20,000 $10,000 0

2015 Equity in Tangible Capital Assets

2017

2016

2018

Restricted Capital Reserve

2019 Unrestricted surplus

FINANCIAL OPERATIONS The Consolidated Statement of Operations outlines revenues earned, and expenses incurred by the Town to provide municipal ser vices.

REVENUE Total revenues for the Town, including contributed asset revenue and government transfers for capital, totalled $20.6 million in 2019 (2018 - $20.6 million) which is unchanged from the prior year and an increase of approximately 5.8% ($1.1 million) from the Town’s 2018 budget.

Prope rty tax is a primar y revenue source available to the Town to pay for municipal ser vices. In 2019, net taxes available for municipal ser vices of approximately $9.3 million was approximately $120,000, or 1.5%, higher than in 2018 and accounted for about 45% of total revenues. Net municipal tax revenue increased largel y because of a lev y increase of 1.5% offset by an overall decrease in taxable assessment. The Schedule of Property and Other Taxes (Schedule 3) of the consolidated financial statements provides further detail with respect to net municipal taxes.

User fees and sales of goods and ser vices were in line with budget at $4.1 million and were marginally lower than 2018. The increase in sales and user fees was primarily in facilities due to increased rental revenues offset by reductions in protective ser vices due to the closure of the ambulance ser vice.

Government transfers for operations declined approximately $709,000 from 2018 and were approximately $554,000, below budget. The difference from budget and prior year is mainly due to the closure of the ambulance ser vice in mid-2019, offset by recognition of deferred grant revenue for the completion of the affordable housing project.

Franchise fee revenue was approximately $68,000 higher than in 2018 and approximately $28,000 below budget. Franchise fees are earned under contract with ATCO Gas for natural gas distribution and ATCO Electric for electrical distribution. The budget is based on estimated distribution revenues provided by ATCO, multiplied by a franchise factor, and will fluctuate from year to year depending on consumer demand.

Other revenues increased marginally compared to 2018 but was $547,000 over budget. The

37

increases from budget are primarily due to increased investment earnings, improved provincial fines, increases in penalties on taxes, additional interest on the ex tension of the possession date for 6620 Highway 16A , forfeited deposit when the deal for that property fell through and unbudgeted rental reve nues and donations.

Contributed asset revenue i n 2018 was $229,000 thousand (2018 - $190,000) and arises from the transfer of a fire truck from our neighboring County for nominal value.

Government transfers for capital were approximately $516,000 higher than in the prior year and $675,000 higher than budget. The increase is largely due to timing of recognition of the grant funds with the costs associated with various capital projects.

E X P E N S ES BY P ROJ EC T The Schedule of Consolidated Expenses by Object (Schedule 5) and the Schedule of Segmented Disclosure (Schedule 6) provide an alternative view of the Town’s expenses.

Expenses by Object decreased by approximately $690,000 from 2018 and by $495,000 from budget.

Contributing factors to these decreases were reductions resulting from the disposition of the ambulance ser vice mid -2019.

Salari es, wages and benefits declined from 2018 by approximately $229,000 due to reduced wages and benefits arising from the disposition of the ambulance ser vice, offset by increased wages in Culture and Tourism and Public Works incurred by filling vacant positions for Tourism Coordinator and Public Works Manager. In addition, wages increased by a cost of living adjustment of 1% in 2019. Wages and benefits were lower than budget by $693,000, primarily as a result of the disposition of the ambulance ser vice.

Contracted and general ser vices were approximately $97,000 lower than in 2018 and consistent with budget. A large portion of the decline from budget is due to planned work in Public Works for road maintenance being deferred into 2020.

Purchases from other governments relate to the RCMP policing contract, which is billed to the Town by RCMP based on RC MP staff complements for wages, overtime and equipment. The amount varies year to year based on those items and in 2019 was $89,000 less than 2018 and $150,000 less than budget.

Materials supplies and utilities increased $169,000 from 2018 and $70,000 from budget. Goods purchased in general government declined $49,000 from budget however this was offset by an increase in ser vices purchased of $50,000. The net change was due to timing of when certain IT projects were undertaken. The majority of the increase for materials, supplies and utilities related to budget and prior year are a result of operating costs and unscheduled repair and maintenance work undertaken on the building located at 6620 HWY 16A . These additional costs were fully funded from unbudgeted revenue from that facility and transfers from the Town’s general operating reser ve.

Other transactions allowances and discounts decreased in 2019 when compared to 2018 but were slightly over budget. Fiscal 2018 included the cost of the purchase of land and buildings that were ultimately resold.

CASH FLOWS

38

The Town’s cash and cash equivalents increased by approximately $3.2 million to $8.0 million. Investments decreased by $1.5 million. Investments were redeemed for ca sh as a result of negot iating a hig her rate of return in our treasur y accounts than can be obtained by investing in Certificates of Deposit. The total amount of ca sh a nd ca sh equivalents plus investments was $9.3 million at December 31, 2019 and represents an increase of approximately $1.6 million for 2019. Total cash provided by operat ing activities was $3.3 million. A net of increase of $1.5 million wa s received in debt financings. Investments were reduc ed by $1.6 million to take advantage of better rates of return in the Town’s treasur y accounts, and $3.3 million was used for acquisition of ta ngible capital assets, a reflection of t he Town’s commitment to the maintenance and improvement of capital infrastructure and facilities.

FINANCIAL CONTROL & ACCOUNTABILITY

The Town maintains a number of processes and financia l controls to ensure that accountability is maintained, and that management is able to proactively identif y and a ddress financia l cha llenges.

FINANCIAL GOVERNANCE Notwithstanding t hat the Town’s management is responsible for the preparation of the management discussion and analysis a nd financial statements, Town Council requires a review of policies, procedures and internal control mechanisms. This includes a review of the mont hly cash reports, quarterly variance analysis reports provided for March, June and September each yea r, annual unaudited financial report, audit findings, significant or unusua l financial tra nsactions a nd accounting treatment or estimates. Town Council is responsible for ensuring t hat Town administration fulfills its responsibilities for financia l report ing internal control and risk management. Town Council is ultimately responsible for approving the Town’s budget, appointing t he ex ternal auditor and providing genera l financial authority and oversight.

BUDGETING The Town uses two sepa rate budgets, the Capita l Budget and t he Operating Budget. On December 10, 2018, Town Council approved the Town’s Operating Budget for 2019. The Operating Budget is the financial plan that provides the foundation for the Town to implement business plans and operat iona lize Town Council’s priori ties in 2019.

In the weeks and months preceding budget a pproval Town Staff and Town Council met severa l times to discuss Council priorities. The 2019 operating budget includes t he required revenues to fund the Town’s deliveries of desired programs and ser vices to the community a nd represent Council’s priorities a s represented in the Town’s St rategic Plan. Plea se note that the Town’s 2019 operating budget is prepared on the modified cash flow basis. Based on this method the Town uses tax revenue, reser ve transfers a nd government transfers to bala nce it s operating budget .

The 2019 operating budget does not include revenue from contributed assets. The 2019 operating budget includes items that are ongoing in nature and have specific funding sources including property taxes, utilit y rates, user fees and operating grants. The 2 019 capital budget wa s approved by Council on December 10,

39 2018. Projects included in t he 2019 capital budget are projects with specified funding sources, including reserve transfers, operational funding a nd funding from Government of Albert a Capital Grants.

ACCOUNTING PROCESS The Town of Vegreville is organized into va rious operating departments, each responsible for managing the delivery of progra ms and services in accorda nce with the resources alloca ted to them. All opera ting department s reporting to the Town Manager sha re a common accounting a nd reporting system. Accounting and fi na ncial services are administered within the Corporate Services Department and delivered to each operating depa rtment based on their needs.

AUDITING PROCESS The M unicipa l Government Act requires a municipal council to appoint a n independent a uditor. In 2019, Council appoint ed Wilde a nd Company Cha rtered Professional Accounta nts to Audit the 2019 Financia l Statements.

Following a comprehensive audit process and after working closely with management, the auditor must report to Town Council with the annual consolidated financial statements. Town Council approved the 2019 Audited Cons olida ted Financia l Statements at its meeting on M arch 23, 2020.

RISKS AND UNCERTAINTIES Due to the current economic situation in Alberta , the Provincial Government ha s taken steps to reduce funding to municipalities. In 2019, the Provincial Government announced a reduction in the funding provided under the M unicipal Sustainable Initia tive and other provincial grant progra ms affecting municipalities and indica ted further cuts will be ma de in 2020 and 2021. A cont inued reduction in capita l funding from the province may have a significant impa ct on the Town’s a bility t o maint ain its Tangible Ca pital Asset base and in particular infrast ructure s uch as roads, w ater, and wastewater assets.

The Town continues t o feel the impact of the loss of jobs as the result of t he closure of t he Federal Government Immigration Case Processing Centre as well as the genera l decline in the Alberta economy. As a result, the Town continues to see a significant increase in residential property listings and sales that are below assessed market values.

ASSESSMENT HISTORY (THOUSANDS)

$800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 0

2015

2016

2017

2018

2019

40 In 20 19, residential a ssessment values declined 2.7%. In 2020 the residential assessment values declined a further 7.9%. A cont inued decrease in taxa ble assessment may affect the ability of the Town to raise sufficient funds to meet current ser vice levels through propert y taxation.

STATISTICAL INFORMATION (UNAUDITED) F I N A N C I A L I N D I C AT O R S Financial indicators can be used to measure a municipalities overa ll fina ncial condition. The following selected indicators measure Susta inability, Flexibility and Vulnerability.

2019 2018 2017 2016 2015 S U S TA I N A B I L I T Y Financial Assets to Liabilities Total Expenditures to Assessment

0.69 2.7%

0.64 2.7%

0.91 2.3%

1.06 2.2%

1.06 2.2%

FLEXIBILITY Debt charges to Revenues

4.8%

6.2%

5.6%

4.9%

4.0%

VULNERABILITY Government Transfers to total Reserves

22.4%

23.4%

25.8%

22.3%

27.1%

Sustaina bilit y indicators indicate the degree to which t he Town can maintain its exist ing ser vices and financial commit ments without increasing debt or the tax burden on its citizens.

The Financial Asset s to Liabilit ies at December 31, 2019 was unchanged at 0.69. This ratio indicates that as at December 31, 2019 the Town had $0.69 in financial assets for every $1.00 in lia bilities. The Fina ncial a ssets to liabilities ratio has declined over t he pa st several years as the Town has used debt financing for major capita l projects such as North Parkway Dra inage and the construction of the RCMP detachment. The debt incurred for t hese projects will be repaid over many years. Propert y taxes and user fees may need to be increased over the years to meet the Town’s financia l lia bilities over time.

Total Expenses to Assessment compares the economic a ctivity in the Town using assessments to tota l expenses for t he orga nization. The increa se in Town expenses should not outpace increases in assessments.

The Town’s ratio has not cha nged significantly over the last five years a nd currently sits close to 2014 levels. This rat io will rise in periods of economic slowdown a s expenses are subject to inflat ion and a ssessments decline.

Flexibility indicato rs measure the de gree to which the Town uses debt instead of increased taxation to meet its ca pital co mmitments. In 2019, the Town committed 4.8% of revenue to ser vice debt. This commitment has increased over t he last 5 years a s the Town made additional investments in infra structure and facilities. Total long-term borrowing has increased from $7.5 million in 2015 to $12.6 million in 2018. The increased debt since 2015 funded t he North Parkway Drainage project to better mana ge the Town’s storm water; fund the co nstruction of a new RCMP detachment; a nd purchase new fire rescue equipment . The Town used debenture debt financing for these projects so that current taxpayers did not fund the full cost up front and t hat fut ure generations would assist in payment for the benefit t hey receive. Despite

41 the increase in debt, the Town’s total debt and total debt ser vicing costs are well within the limits set for municipalities under the MGA .

Vulne rability indicators measure the degree to which the Town depends on other levels of government for operating funding. This measure has fluctuated over the last five years and for 2019 was 22.4%. As funding from government transfers decline other sources of revenue such as sales and user fees and property taxes are subject to increase to make up the shortfall.

Five Year Summary of Consolidated Revenues For the years ended December 31, 2015 to 2019 REVENUE BY FUNCTION

2019 $

2018

9,295,033 1,954,188 1,964,893 906,751 686,390 675,378 2,115,082 2,149,032 785,035 96,739 20,628,521

$

$ 9,295,033 Net Municipal Taxes 4,088,832 Sales and user fees 4,620,554 Government transfers 1,172,437 Franchise fees 159,301 Investment income 369,596 Fines, licenses, permits & penalties 693,892 Other 228,876 Contributed assets TOTAL REVENUE $ 20,628,521

$

Net Municipal Taxes General Government Protective Services Recreation, Parks & Culture Facilities Community Services Public Works Utilities Municipal Services Planning & Development

$

$

2017

9,174,231 1,965,195 2,703,862 1,280,549 323,129 640,653 917,987 2,728,058 774,558 84,742 20,592,964

$

9,174,231 4,109,053 4,814,105 1,104,374 156,091 344,312 700,686 190,112 20,592,964

$

$

2016

8,950,317 1,569,286 2,650,242 1,152,701 422,855 908,856 1,696,237 2,174,250 1,044,162 89,044 20,657,950

$

8,950,317 4,211,795 5,325,161 1,194,961 101,447 423,044 202.547 248,678 20,657,950

$

$

2015

9,007,824 1,345,798 2,619,118 987,152 587,743 901,664 921,955 2,488,119 789,488 81,996 19,730,857

$

9,007,824 4,360,884 4,448,452 1,053,906 75,367 320,087 362,494 101,843 19,730,857

$

$

8,790,743 1,193,701 2,595,518 1,167,613 567,865 1,150,533 1,233,629 2,974,536 990,784 220,899 20,885,821

REVENUE BY OBJECT

$

$

$

$

8,790,743 4,562,743 5,640,890 972,112 93,039 250,142 215,041 361,111 20,885,821

2019 C O N S O L I D AT E D R E V E N U E B Y F U N C T I O N Planning & Development - 0.5% Municipal Services - 3.8%

General Government - 9.5%

Public Works - 10.3%

Net Municipal Taxes - 45.1%

Community Services - 3.3%

42

2019 C O N S O L I D AT E D R E V E N U E B Y O B J E C T

Contributed assets - 1.1%

Franchise fees - 5.7%

Other - 3.4%

Government transfers - 22.4% Sales and User fees - 19.8% Net Municipal Taxes - 45.1%

Investment income - 0.8%

Five Year Summary of Consolidated Expenses For the years ended December 31, 2015 to 2019 EXPENSE BY FUNCTION

2019

2018

General Government $ 2,676,454 Protective Services 3,314,000 Recreation, Parks & Culture 3,262,540 Facilities 1,958,677 1,084,489 Community Services 4,355,070 Public Works 2,446,022 Utilities 1,503,286 Municipal Services 264,368 Subdivision & Development services

TOTAL EXPENSES BY FUNCTION $ 20,864,906

2017

2016

2015

$

2,313,522 4,348,419 3,184,167 1,684,579 924,882 4,402,563 2,479,451 1,315,965 234,173

$

2,144,259 4,179,982 3,118,230 1,641,592 1,313,288 4,957,407 2,526,768 1,255,929 275,295

$

1,940,710 3,964,159 3,033,388 1,764,458 1,259,275 4,324,482 2,460,878 1,228,325 312,777

$

1,713,529 3,980,785 3,099,546 1,567,209 1,428,827 4,498,675 2,702,344 1,209,865 274,309

$

21,531,682

$

21,828,289

$

20,495,380

$

20,766,755

$

8,761,669 2,952,333 1,110,715 3,354,596 661,266 209,935 49,441 319,206 50,350 4,062,171

$

8,880,487 3,409,002 1,161,676 3,456,631 359,981 254,881 53,200 259,788 3,992,643

$

9,077,343 2,685,289 971,434 3,203,080 149,309 76,193 40,622 244,730 122,496 3,924,884

$

9,013,226 3,869,548 1,061,901 2,542,323 94,159 86,078 38,318 253,045 62,773 3,745,384

$

21,531,682

$

21,828,289

$

20,495,380

$

20,766,755

EXPENSES BY OBJECT

Salaries, wages and benefits $ 8,532,305 Contracted and general services 2,872,262 1,021,761 Purchases from other governments 3,523,309 Materials, goods, supplies & utilities 257,369 Other transactions 252,088 Transfers to local boards & agencies 31,696 Bank charges & short term interest 349,602 Interest on long-term debt 56,718 Loss on disposal of assets 3,967,796 Amortization of capital assets

TOTAL EXPENSES BY OBJECT $ 20,864,906

2019 E X P E N S E S B Y O B J E C T Purchases form other governments - 4.9%

Loss on disposal of assets -0.3%

Contracted services - 13.8%

Bank charges - 0.2%

Goods & materials purchased - 16.9%

Transfers to local boards & agencies - 1.2% Interest on long-term debt - 1.7%

43

2019 C O N S O L I D AT E D E X P E N S E S B Y F U N C T I O N

Community Services Subdivision & development

General Government

Municipal services Public Works

Five Year Summary of Debenture Debt For the years ended December 31, 2015 to 2019 2019 Self Supported • Storm Sewer- North Parkway $ • Drainage

used

1,190,391

$

1,324,460

2016

$

1,324,460

2015

$

-

1,190,391

1,324,460

1,324,460

-

5,898,382 336,643 882,578 4,435,490

3,975,666 384,531 959,196 4,631,849

431,436 1,429,044 4,822,124

477,382 1,964,836 5,006,504

2,488,343 5,057,867

11,553,093 $ 12,606,314

9,951,242 11,141,633

6,682,604 8,007,064

7,448,722 8,904,222

7,546,210 7,546,210

TOTAL LONG-TERM DEBT DEBENTURE DEBT PER CAPITA Self Supported $ Tax Supported

Percentage of debt service limit

$

2017

1,053,221

Tax Supported • RCMP Detachment • Fire Equipment • Infrastructure • Facilities

DEBT LIMIT Total debt limit Total debt Debt limit used Percentage of debt limit used DEBT SERVICING Debt service limit Debt service (principal & interest) Debt service limit unused

1,053,221

2018

$

185 2,024 2,199

$ $ $

209 1,743 1,952

$ $ $

232 1,171 1,403

$ $ $

$

253 1,294 1,546

$ $

1,311 1,311

$ 27,741,351 12,606,314

$ 28,505,529 11,141,633

$ 27,814,878 8,007,064

$ 27,578,841 8,904,222

$

27,288,453 7,546,210

$ 17,363,896 45.4%

$ 17,363,896 39.1%

$ 19,807,814 28.8%

$ 18,674,619 32.3%

$

19,742,243 27.7%

$

$

4,596,474 1,160,611 3,435,863

$

4,548,076 932,966 3,615,110

$ $

4,623,559 988,941 3,859,953 21.4%

$ $

4,750,922 890,969 3,859,953 18.8%

$

4,635,813 1,082,264 3,553,549 23.3%

$

25.3%

$

20.5%

44

INDEPENDENT AUDITOR'S REPORT

To the Mayor and Council of Town of Vegreville Opinion We have audited the consolidated financial statements of Town of Vegreville, which comprise of the statement of financial position at December 31, 2019, and the statements of operations, change in net debt and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Town as at December 31, 2019, and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Town in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information Our opinion on the consolidated financial statements does not cover Management's Annual Report and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the Annual Report and, in doing so, consider whether the Annual Report is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this Annual Report, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Town's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the Town or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Town's financial reporting process.

(continues)

45

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

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









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

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

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

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

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

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

Vegreville, AB April 15, 2020

Chartered Professional Accountants

46

47

Consolidated Statement of Financial Position For the year ended December 31, 2019 2019 Financial Assets Cash and cash equivalents (Note 4) Restricted cash and cash equivalents (Note 5) Receivables Taxes and grants in place of taxes (Note 6) Due from governments Trade and other receivables Land held for resale (Note 7) Investments (Note 8)

$ 7,980,957 $ 575,166

2018 (Restated) 4,810,357 669,970

1,038,601 100,807 569,377 600,355 750,770 11,616,033

701,325 349,673 658,439 597,287 2,274,606 10,061,657

1,778,096 559,245 97,500 575,166 12,606,314 1,200,195

2,093,809 660,651 1,500 590,323 11,141,633 1,160,188

16,816,516

15,648,104

Net Debt

(5,200,483)

(5,586,447)

Non-Financial Assets Tangible capital assets (Schedule 2) Inventory for consumption Prepaid expenses Land held for resale (Note 7)

58,988,003 157,000 89,606 998,525

59,601,342 128,058 264,232 861,851

60,233,134

60,855,483

Liabilities Accounts payable and accrued liabilities (Note 9) Accrued employee obligations (Note 10) Deposit liabilities Deferred revenue (Note 11) Long-term debt (Note 12) Asset Retirement Obligation (Note 14)

Accumulated Surplus, as restated (Schedule 1, Note 16, Note 22) Contingencies (Note 21)

$ 55,032,651 $

55,269,036

48

Consolidated Statement of Operations For the Year Ended December 31, 2019 Budget (unaudited) Revenues Net municipal taxes (Schedule 3) User fees and sales of goods and services Government transfers for operating (Schedule 4) Investment Income Franchise and concession contracts Fines, licenses, permits and penalties Other

$

2018 (Restated)

2019

9,310,814 $ 4,067,775 3,259,405 95,000 1,200,000 252,500 71,840

9,295,033 $ 4,088,832 2,705,869 159,301 1,172,437 372,219 691,269

9,174,231 4,109,054 3,414,939 156,091 1,104,374 344,312 700,685

18,257,334

18,484,960

19,003,686

2,525,813 4,254,151 3,023,439 1,522,037 1,083,097 4,647,475 2,415,624 1,511,699 319,314

2,676,454 3,280,195 3,253,979 1,967,238 1,080,757 4,339,285 2,442,626 1,503,286 264,368

2,957,483 4,348,419 3,161,826 1,684,579 924,882 4,401,967 2,452,038 1,333,011 234,173

21,302,649

20,808,188

21,498,378

(3,045,315)

(2,323,228)

(2,494,692)

1,239,500

(56,718) 228,876 1,914,685

(170,154) 190,112 1,399,165

Deficiency of revenue over expenses

(1,805,815)

(236,385)

(1,075,569)

Accumulated surplus, beginning of year

57,374,169

55,269,036

57,374,169

-

-

(1,029,564)

57,374,169

55,269,036

56,344,605

55,568,354 $

55,032,651 $

55,269,036

Expenses General government services Protective Services Recreation, parks and culture Facilities Community services Public works Utilities Municipal services Subdivision and development services Deficiency of revenue over expenses – before other, as restated Other Loss on disposal of tangible capital assets Contributed assets Government transfers for capital (Schedule 4)

Prior period adjustment (Note 22) Accumulated surplus, beginning of year as restated Accumulated surplus, end of year, as restated

$

49

Consolidated Statement of Change in Net Debt For the Year Ended December 31, 2019 Budget (unaudited) Deficiency of revenue over expenses, as restated

$

Acquisition of tangible capital assets

2019

(1,805,815) $

(236,385) $

2018 (Restated) (1,075,569)

(2,660,200)

(3,312,297)

(5,880,332)

Contributed tangible capital assets

-

(228,876)

(190,112)

Proceeds on disposal of tangible capital assets

-

130,000

-

3,946,527

3,967,794

4,062,171

-

56,718

170,154

1,286,327

613,339

(1,838,119)

Acquisition of inventory for consumption

-

(28,942)

(53,820)

Use of prepaid expenses

-

174,626

303,982

Additions to land held for resale

-

(136,674)

-

-

9,010

250,162

(519,488)

385,964

(2,663,526)

(2,922,921)

(5,586,447)

(2,922,921)

Amortization of tangible capital assets Loss on disposal of tangible capital assets

Increase (decrease) in net financial assets Net debt, beginning of year Net debt, end of year, as restated

$

(3,422,409) $ (5,200,483) $

(5,586,447)

50

(16,770) 1,775,139

Change in accumulated surplus

Balance, end of year, as restated

2,821,473 (1,029,564) 1,791,909 (1,075,569) (1,183,772) 793,053 (5,727,264) (190,112) 4,062,171 170,154 4,000,000 (865,431)

3,945,054

Balance, end of year

Balance, beginning of year Prior period adjustment (Note 22) Balance, beginning of year, as restated Deficiency of revenues over expenses Unrestricted funds designated for future use Restricted funds used for operations Restricted funds used for tangible capital assets Current year funds used for tangible capital assets Contributed tangible capital assets Annual amortization expense Disposal of capital assets Long-term debt advanced Long-term debt repaid

2,169,915

Change in accumulated surplus

Balance, beginning of year, as restated Deficiency of revenues over expenses Unrestricted funds designated for future use Restricted funds used for operations Restricted funds used for tangible capital assets Current year funds used for tangible capital assets Contributed tangible capital assets Annual amortization expense Disposal of capital assets Long-term debt advanced Long-term debt repaid

Unrestricted Surplus 1,775,139 (236,385) (645,456) 914,811 130,000 (3,253,372) (228,876) 3,967,794 56,718 2,003,000 (538,319)

Schedule of Changes in Accumulated Surplus For the year ended December 31, 2019

3,623,561

(95,930)

3,719,491 3,719,491 664,123 (760,053) -

3,212,178

(411,383)

Restricted Operating Reserves 3,623,561 506,706 (859,164) (58,925) -

1,410,627

333,581

1,077,046 1,077,046 519,649 (33,000) (153,068) -

1,493,730

83,103

Restricted Capital Reserves 1,410,627 138,750 (55,647) -

48,459,709

(1,296,450)

49,756,159 49,756,159 153,068 5,727,264 190,112 (4,062,171) (170,154) (4,000,000) 865,431

46,381,689

(2,078,020)

Equity in Capital Assets 48,459,709 (71,075) 3,253,372 228,876 (3,967,794) (56,718) (2,003,000) 538,319

55,269,036

(1,075,569)

55,032,651 2018 $ (Restated) 57,374,169 (1,029,564) 56,344,605 (1,075,569) -

(236,385)

2019 $ 55,269,036 (236,385) -

(Schedule 1)

51

3,094,385

-

Balance, end of year, as restated

Net book value -2018, as restated

8,728,177 8,728,177 441,568 -

-

9,474,733

9,169,745

18,644,478 18,644,478 18,644,478

3,094,385 3,094,385 3,094,385

Buildings

15,179,021

Cost: Balance, beginning of year Prior period adjustment (Note 22) Balance, beginning of year, as restated Acquisition of tangible capital assets Contribution of tangible capital assets Disposal of tangible capital assets Adjustments Balance, end of year, as restated Accumulated Amortization: Balance, beginning of year Prior period adjustment (Note 22) Balance, beginning of year, as restated Annual amortization Accumulated amortization on disposals Adjustments

Land

3,094,385

-

Balance, end of year

Net book value -2019

9,169,745 441,568 -

9,611,313

18,644,478 142,494 6,003,362 24,790,334

3,094,385 3,094,385

Buildings

Cost: Balance, beginning of year, as restated Acquisition of tangible capital assets Contribution of tangible capital assets Disposal of tangible capital assets Adjustments Balance, end of year Accumulated Amortization: Balance, beginning of year, as restated Annual amortization Accumulated amortization on disposals

Land

Schedule of Tangible Capital Assets For the Year Ended December 31, 2019

36,369,366

79,199,052

78,328,270 (1,825,782) 76,502,488 2,859,355 (162,791) -

116,560,274 (1,945,586) 114,614,688 1,192,813 (213,141) (25,942) 115,568,418

Engineered Structures

36,043,017

78,736,582

79,199,052 2,798,050 (3,260,520)

115,568,418 1,963,991 (3,279,703) 526,893 114,779,599

Engineered Structures

2,187,501

6,339,504

6,000,587 6,000,587 338,917 -

8,193,293 8,183,293 333,712 8,527,005

Machinery and Equipment

2,223,753

6,498,434

6,339,504 361,368 (202,438)

8,527,005 456,115 (260,933) 8,722,187

Machinery and Equipment

2,570,348

3,281,641

3,549,394 3,549,394 422,331 (690,084)

6,327,520 6,327,520 214,553 (690,084) 5,851,989

Vehicles

2,394,650

3,218,973

3,281,641 366,808 (429,476)

5,851,989 71,274 228,876 (538,516) 5,613,623

Vehicles

5,905,009

-

-

1,549,701 1,549,701 4,139,254 190,112 25,942 5,905,009

Construction in Progress

53,177

-

-

5,905,009 678,423 (6,530,255) 53,177

Construction in Progress

59,601,342

97,989,942

96,606,428 (1,825,782) 94,780,646 4,062,171 (162,791) (690,084)

154,369,651 (1,945,586) 152,424,065 5,880,332 190,112 (213,141) (690,084) 157,591,284

58,988,003 2018 $ (Restated)

98,065,302

97,989,942 3,967,794 (3,892,434)

157,591,284 3,312,297 228,876 (4,079,152) 157,053,305

2019 $

(Schedule 2)

52

53

Schedule of Property and Other Taxes For the Year Ended December 31, 2019

(Schedule 3) Budget (unaudited)

Taxation Real property taxes Designated Industrial Property taxes Government grants in place of property taxes

$

Requisitions Alberta School Foundation Fund Minburn Senior’s Foundation Designated Industrial Properties

Net Municipal Taxes

$

2019

2018

10,157,570 $ 448,697 976,209

10,009,687 $ 510,753 1,007,624

10,034,343 445,005 966,543

11,582,476

11,528,064

11,445,891

2,162,986 107,919 757

2,117,823 113,273 1,935

2,162,985 107,919 756

2,271,662

2,233,031

2,271,660

9,310,814 $

9,295,033 $

9,174,231

54

55

56

57

1.

Significant accounting policies The consolidated financial statements of the municipality are the representations of management prepared in accordance with generally accepted accounting principles for local governments established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. Significant aspects of the accounting policies adopted by the municipality are as follows: Reporting Entity The consolidated financial statements reflect the assets, liabilities, revenues and expenses, changes in fund balances and change in financial position of the reporting entity. This entity is comprised of the municipal operations plus all of the organizations that are owned or controlled by the Town and, are therefore, accountable to Council for the administration of their financial affairs and resources.

The schedule of taxes levied also includes requisitions for education, health, social and other external organizations that are not part of the municipal reporting entity.

The statements exclude trust assets that are administered for the benefit of external parties.

Interdepartmental and organizational transactions and balances are eliminated.

Basis of Accounting The financial statements are prepared. using the accrual basis of accounting. The accrual basis of accounting records revenue as it is earned and measurable. Expenses are recognized as they are incurred and measurable based upon receipt of goods or services and/or the legal obligation to pay.

Funds from external parties and, earnings thereon restricted by agreement or legislation are accounted for as deferred revenue until used for the purpose specified.

Government transfers, contributions and other amounts are received from third parties pursuant to legislation, regulation or agreement and may only be used for certain programs, in the completion of specific work, or for the purchase of tangible capital assets. In addition, certain user charges and fees are collected for which the related services have yet to be performed. Revenue is recognized in the period when the related expenses are incurred, services performed or the tangible capital assets are acquired.

Use of Estimates The preparation of financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the period where measurement uncertainty exists, the financial statements have been prepared within reasonable limits of materiality.

Actual results could differ from those estimates.

Significant estimates include: - providing for amortization of capital assets; - the estimated useful lives of assets; - the allowance for doubtful accounts; - the recoverability of tangible assets; and - the valuation of asset retirement obligations

58

Cash and temporary investments Cash includes cash and cash equivalents. Cash equivalents are investments in money market funds, bonds and guaranteed investment certificates and are valued at cost plus accrued interest. The carrying amounts approximate fair value because they have maturities at the date of purchase of less than ninety days.

Debt charges recoverable Debt charges recoverable consist of amounts that are recoverable from municipal agencies or other local governments with respect to outstanding debentures or other long term debt pursuant to annexation orders or joint capital undertakings. These recoveries are recorded at a value that equals the offsetting portion of the unmatured long term debt, less actuarial requirements for the retirement of any sinking fund debentures.

Investments Investments are short-term deposits with original maturities of twelve months or less with redemption beginning thirty days after purchase without penalty. Investments are recorded at cost. When there has been a loss in value that is other than a temporary decline, the respective investment is written down to recognize the loss.

Requisition over-levy and under-levy Over-levies and under-levies arise from the difference between the actual property tax levy made to cover each requisition and the actual amount requisitioned.

If the actual levy exceeds the requisition, the over-levy is accrued as a liability and property tax revenue is reduced. Where the actual levy is less than the requisition amount, the under-levy is accrued as a receivable and as property tax revenue.

Requisition tax rates in the subsequent year are adjusted for any over-levies or under-levies of the prior year.

Inventories for resale Land held for resale is recorded at the lower of cost or net realizable value. Cost includes costs for land acquisition and improvements required to prepare the land for servicing such as clearing, stripping and leveling charges. Related development costs incurred to provide infrastructure such as water and wastewater services, roads, sidewalks and street lighting are recorded as physical assets under the respective function.

Tax revenue Tax revenues are recognized when the tax has been authorized by bylaw and the taxable event has occurred.

Requisitions operate as a flow through and are excluded from municipal revenue.

Asset Retirement Obligation Pursuant to the Alberta Environmental Protection and Enhancement Act, the Town is required to fund the closure of its landfill site and provide for post-closure care of the facility. Closure and post- closure activities include the final clay cover, landscaping, as well as surface and ground water monitoring, leachate control and visual inspection. The requirement is being provided for over the accreted value from the initial obligation to the end of the useful life of the landfill.

59

Government transfers Government transfers are the transfer of assets from senior levels of government that are not the result of an exchange transaction, are not expected to be repaid in the future, or the result of a direct financial return.

Government transfers are recognized in the financial statements as revenue in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be determined.

Non-financial assets Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the normal course of operations. The change in non-financial assets during the year, together with the excess of revenues over expenses, provides the consolidated Change in Net Financial Debt for the year. a) Tangible capital assets

Tangible capital assets are recorded at cost, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets is amortized on a straight-line basis over the estimated useful life as follows: Tangible Capital Asset Land improvements Buildings Engineered structures Roadway system Water system Wastewater system Storm system Other Machinery and equipment Vehicles

Years

15-45 25-50 5-65 45-75 45-75 45-75 10-80 5-40 5-40

b) Contributions of tangible capital assets

Tangible capital assets received as contributions are recorded at fair value at the date of receipt and are also recorded as revenue. c) Leases

Leases are classified as capital or operating leases. Leases which transfer substantially all of the benefits and risks incidental to ownership of property are accounted for as capital leases. All other leases are accounted for as operating leases and the related lease payments are charged to expenses as incurred. d) Inventories

Inventories held for consumption are recorded at the lower of cost and replacement cost. e) Cultural and historical tangible capital assets

Works of art for display are not recorded as tangible capital assets but are disclosed.

60

2.

Adoption of recent accounting pronouncements Section PS 3280 – Asset Retirement Obligations This new section establishes standards on how to account and report a liability for asset retirement obligations (ARO). This Section identifies the main attributes of an ARO and provides guidance on how to establish the fair value of the ARO. This standard is effective for fiscal periods beginning on or after April 1, 2021. Early adoption is permitted. The Town has adopted PS 3280 retrospectively for the fiscal period ended December 31, 2019.

Section PS 3430 - Restructuring Transactions This new section defines a restructuring transaction and establishes standards for recognizing and measuring assets and liabilities transferred in a restructuring transaction.

3.

Recent accounting pronouncements published but not yet adopted The following accounting standards have been issued by the Chartered Professional Accountants of Canada (CPAC) but are not yet effective. The municipality is currently evaluating the effect of adopting these standards on their financial statements.

Section PS 3450 - Financial Instruments The new section establishes standards for recognizing and measuring financial assets, financial liabilities and non-financial derivatives. In conjunction with this new section, section PS1201, section PS 2601 and section 3041 have been amended as a consequence of the introduction of new financial instruments standards. These amendments were required to present the associated gains and losses with financial instruments recognized under the new section. The new section and the related amendments are effective for fiscal periods beginning on or after April 1, 2019.

Section PS 3400 – Revenue This new section establishes standards on how to account for and report on revenue. This section differentiates between revenue arising from transactions that include performance obligations and transactions that do not have performance obligations. The new section applies to fiscal years beginning on or after April 1, 2022. Earlier adoption is permitted.

4.

Cash and cash equivalents 2019 Cash on hand General bank account Temporary investments Less cash designated for deferred revenues

$

$

2,335 $ 4,510,828 4,042,960 (575,166) 7,980 957 $

2018 2,930 289,464 5,108,286 (590,323) 4,810,357

Temporary investments are short-term deposits with original maturities of three months or less.

Council has designated funds of $1,493,730 (2018 - $1,410,627) included in the above amounts for capital projects. BMO Bank of Montreal has authorized the Town to a maximum overdraft of $1,000,000. The overdraft bears interest at prime less 1.85%. At December 31, 2019 there was no balance on the overdraft.

61

5.

Restricted cash and cash equivalents Cash designated for deferred revenues Tax sale surplus investments

$ $

6.

2019 575,166 $ 575,166 $

2018 590,323 79,647 669,970

2019

2018

Taxes and grants in place of taxes

Current taxes and grants in place of taxes Arrears taxes Property acquired

$

572,060 $ 81,212 408,692 1,061,964 (23,363) 1,038,601

Less allowance for doubtful accounts 7.

258,047 69,519 397,122 724,688 (23,363) 701,325

Land held for resale Land held for resale as financial asset Land held for resale as non-financial asset

$

2019 600,355 998,525

2018 597,287 861,851

$

Certain land held for resale has been reclassified in the current year as a non-financial asset as it does not meet the requirement of reasonable expectation of sale within the next twelve months.

8.

Investments 2019

Term deposits

$

Cost 750,770 750,770

2018

$

Market value 750,770 750,770

$

Cost Market Value 2,274,606 $ 2,274,606 2,274,606 2,274,606

Investments are short-term deposits with original maturities of twelve months or less with redemption beginning thirty days after purchase without penalty. Interest rates on these short-term deposits are 2.5% (2018 - 2.10% to 2.35%).

9.

Accounts payable and accrued liabilities

Trade accounts payable and accrued liabilities Government payroll remittance payable

$ $

2019 1,709,065 $ 69,031 1,778,096 $

2018 (Restated) 2,014,333 79,476 2,093,809

62

10. Accrued employee obligations Vacation Accumulated sick leave

$ $

2019 426,052 $ 133,193 559,245 $

2018 520,777 139,874 660,651

The vacation liability is comprised of the vacation and overtime that employees are deferring to future years. Employees have either earned the benefits (and are vested) or are entitled to these benefits within the next budgetary year.

The Town also has accumulating non-vesting sick leave benefits. Employees accrue one day of sick time per month to a maximum of twelve days. Sick time is not paid out upon termination or retirement.

11. Deferred revenue Municipal Sustainability grant Gas Tax Fund Family Community Support Services grant Alberta Housing and Urban Affairs Specified donations Other

$

$

2019 373,384 $ 36,681 15,046 10,408 139,647 575,166 $

2018 201,107 19,839 130,535 10,408 228,434 590,323

Funding received from the various grant programs noted above are restricted to eligible operating and capital projects as approved in the funding agreements. Unexpended funds related to the funding advances are supported by restricted cash and cash equivalents (Note 5).

63

12. Long-term debt Tax supported debentures Self supported debentures

$ $

2019 11,553,093 $ 1,053,221 12,606,314 $

2018 9,951,242 1,190,391 11,141,633

The current portion of long-term debt amounts to $598,763 (2018 - $538,319).

Principal and interest payments for the next five years and to maturity are as follows: 2020 2021 2022 2023 2024 Thereafter

Principal $ 598,763 608,031 626,496 645,551 665,215 9,462,258 $ 12,606,314

Interest 390,178 372,065 353,600 334,545 314,881 3,010,006 4,775,275

Total 988,941 980,096 980,096 980,096 980,096 12,472,264 17,381,589

Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates ranging from 2.081% to 4.395% per annum and mature in periods 2020 through 2049. The average annual interest rate is 3.13% (2018 – 3.20%).

Debenture debt is issued on the credit and security of the Town at large.

Interest on long-term debt amounted to $349,602 (2018 – $319,206).

13. Debt limits Section 276(2) 0f the Municipal Government Act requires that debt and debt limits as defined by Alberta Regulation 255/2000 for the Town of Vegreville be disclosed as follows: Total debt limit Total Debt Amount of debt limit unused

$

Debt servicing limit Debt servicing Amount of debt servicing unused

$ $

2019 27,727,440 $ (12,606,314) 15,121,126

2018 28,505,529 (11,141,633) 17,363,896

4,621,240 $ (988,941) 3,632,299 $

4,750,922 (890,969) 3,859,953

The debt limit is calculated at 1.5 times revenue of the Town (as defined in Alberta Regulation 255/2000) and the debt service limit is calculated as 0.25 times such revenue. Incurring debt beyond these limitations requires approval by the Minister of Municipal Affairs. These thresholds are guidelines used by Alberta Municipal Affairs to identify municipalities that could be at financial risk if further debt is acquired. These calculations taken alone do not represent the financial stability of the municipality. Rather, the financial statements must be interpreted as a whole.

64

14. Asset Retirement Obligation In 2019 the Town of Vegreville retrospectively adopted Section PS 3280 – Asset Retirement Obligations.

Alberta environmental law requires closure and post-closure care of landfill sites, which include final covering and landscaping, pumping of ground water and leachates from the site and ongoing environmental monitoring, site inspections and maintenance.

The initial asset retirement obligation is based on current year expectations for costs discounted to 1982. Retirement obligations are accreted at the discount rate from the initial obligation created as of 1982, to the end of the useful life of the landfill in the case of closure costs; and to the end of the post closure period for post closure costs. Accreted value of the asset retirement obligations are calculated using the average 10 year long term borrowing rate of 3.4482%.

The following table summarizes the total accreted value of the asset retirement obligation for the estimated costs of closure and post-closure care: 2018 2019 (Restated) Estimated closure costs, beginning of year $ 1,132,943 $ 1,095,179 Accretion expense 39,066 37,764 Estimated closure costs, end of year

$

1,172,009 $

1,132,943

Estimated post closure costs, beginning of year Accretion expense Estimated post closure costs, end of year

$ $

27,245 $ 941 28,186 $

26,337 908 27,245

Total closure and post closure costs, end of year

$

1,200,195 $

1,160,188

At the current capacity, it is estimated that the Vegreville Sanitary Landfill has approximately 45 years of life remaining.

Post closure care commences 30 days following closure of the landfill and continues for a minimum period of 25 years.

The Town has not designated assets settling closure and post-closure liabilities.

See Note 22 for adjustments to the 2018 financial statements presented as comparatives, related to the asset retirement obligation.

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15. Equity in tangible capital assets

Tangible capital assets (Schedule 2) Accumulated amortization (Schedule 2) Long-term debt (Note 12)

$

$

2019 157,053,305 $ (98,065,302) (12,606,314) 46,381,689 $

2018 (Restated) 157,591,284 (97,989,942) (11,141,633) 48,459,709

16. Accumulated surplus Accumulated surplus consists of restricted and unrestricted amounts and equity in tangible capital assets as follows:

Unrestricted surplus Restricted surplus Operating reserves Capital reserves Equity in tangible capital assets

$

2019 3,945,054 $

2018 (Restated) 1,775,139

$

3,212,178 1,493,730 46,381,689 55,032,651 $

3,623,561 1,410,627 48,459,709 55,269,036

17. Segmented disclosure The Town provides a range of services to its ratepayers. For each reporting segment, revenues and expenses represent amounts that are directly attributable to the segment and amounts that are allocated on a reasonable basis. The accounting policies used in these segments are consistent with those followed in the preparation of the financial statements as disclosed in Note 1.

Refer to Schedule of Segmented Disclosure (Schedule 6).

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18. Salary and benefits Disclosure of salaries and benefits for municipal officials, the Town Manager and designated officers as required by Alberta Regulation 313/2000 is as follows: Benefits and allowances T. MacPhee, Mayor D. Berry, Councillor M. Brodziak, Councillor J. Lemko, Councillor T. Rudyk, Councillor T. Warawa, Councillor A. Waters, Councillor Town Manager Town Directors (3)

$

$

Salaries (1) 57,600 $ 29,000 30,400 29,400 37,500 23,900 27,600 144,311 333,939 713,650 $

(2)(3)

8,581 6,383 3,629 6,466 7,073 6,053 6,331 27,138 59,634

$

131,288

$

2019 66,181 35,383 34,029 35,866 44,573 29,953 33,931 171,449 393,573 844,938

$

$

2018 59,690 34,158 34,428 33,932 42,060 28,877 35,437 170,021 399,728 838,331

1. Salary includes regular base pay, bonuses, overtime, lump sum payments, gross honoraria and any other direct cash remuneration.

2. Employers share of all employee benefits and contribution or payments made on behalf of employees including, pension, health care, dental coverage, vision coverage, group life insurance, accidental disability and dismemberment insurance, short and long term disability plans, professional memberships and tuition.

3. Benefits and allowances figures also include the employer’s share of the costs of additional taxable benefits including special leave with pay, financial and retirement planning services, concessionary loans, travel allowances, car allowances and club memberships.

19. Local Authorities Pension Plan Employees of the Town participate in the Local Authorities Pension Plan (LAPP), which is one of the plans covered by the Public Sector Pension Plans Act. The LAPP is financed by employer and employee contributions and by investment earnings of the LAPP fund.

Contributions for current service are recorded as expenditures in the year in which they come due.

The Town is required to make current service contributions to the LAPP of 9.39% of pensionable earnings up to the year’s maximum pensionable earnings under the Canada Pension Plan and 13.84% on pensionable earnings above this amount.

Total current service contributions by the Town to the LAPP in 2019 were $513,510 (2018 - $593,500).

Total current service contributions by the employees of the Town to the LAPP in 2019 were $463,386 (2018 - $541,185).

As at December 31, 2018, the LAPP disclosed an actuarial surplus of $3.5 billion.

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20. Financial instruments The Town’s financial instruments consist of cash and temporary investments, receivables, investments, accounts payable and accrued liabilities, deposit liabilities, requisition over-levy, and long-term debt. It is management’s opinion that the Town is not exposed to significant interest or currency risks from these financial instruments.

The Town is subject to credit risk with respect to taxes and grants in place of taxes receivable and trade and other receivables. Credit risk arises from the possibility that taxpayers and entities to which the Town provides services may experience financial difficulty and be unable to fulfill their obligations.

The large number and diversity of taxpayers and customers minimizes the credit risk.

Unless otherwise noted, the carrying value of the financial instruments approximates fair value.

21. Contingencies The Town is a member of the Alberta Municipal Insurance Exchange (MUNIX). Under the terms of the membership, the town could become liable for its proportionate share of any claims losses in excess of the funds held by MUNIX. Any liability incurred would be accounted for as a current transaction in the year the losses are determined.

The Town is named as a defendant in a lawsuit alleging breach of contract. The Town has filed a statement of defence denying the allegations. No amount has been accrued as a liability in these financial statements as the amount of the liability, if any, cannot be reasonably estimated at this time.

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22. Prior Period Adjustment In 2018, the Town of Vegreville completed several capital works projects and the subsequent disposals of the Tangible Capital Assets were not recorded. The prior period financial statements have been adjusted to reflect the disposals of cost and accumulated amortization for these projects in 2018.

In 2019, the Town of Vegreville retrospectively adopted Section PS 3280 – Asset Retirement Obligations. The prior period financial statements have been adjusted to reflect the adoption of the accounting standard retrospectively to 2018.

The following adjustments were made to the 2018 financial statements presented as comparatives:

Tangible capital assets, net book value Tangible capital assets, cost Tangible capital assets, accumulated amortization Accounts payable and accrued liabilities Asset retirement obligation Net debt Accumulated surplus, beginning of the year Accumulated surplus, end of the year Equity in capital assets Expenses Deficiency of revenue over Expenses

Amounts recorded in 2018 financial statements

Adjustment to reflect acquisition of tangible capital asset

Adjustment to reflect Asset Retirement Obligation

Amounts restated in 2018 financial statements presented as comparatives

59,721,146 159,536,870

(119,804) (1,945,586)

-

59,601,342 157,591,284

99,815,724

(1,825,782)

-

97,989,942

2,207,391 (4,539,841)

-

(113,582) 1,160,188 (1,046,606)

2,093,809 1,160,188 (5,586,447)

57,374,169

-

(1,029,564)

56,344,605

56,435,451 48,579,513 21,481,331

119,804 (119,804) -

(1,046,611) 17,047

55,269,036 48,459,709 21,498,378

(938,718)

(119,804)

(17,047)

(1,075,569)

23. Approval of financial statements Council and Management have approved these consolidated financial statements.

24. Budget amounts Budget amounts are included for information purposes only and are not audited.

25. Comparative figures Certain comparative figures have been reclassified to correspond with the current year presentation.

Town of Vegreville Main Office 4829 - 50 Street | PO Box 640 Vegreville, AB T9C 1R7 P: 780.632.2606 FCSS: 780.632.3966 IP&D:780.632.6479 F: 780.632.3088

Aquatic and Fitness Centre & Wally Fedun Arena 4509 - 48 Street | PO Box 640 Vegreville, AB T9C 1R7 P: 780.632.3100 F: 780.632.7759

Public Works 5417 Birch Avenue | PO Box 640 Vegreville, AB T9C 1R7 P: 780.632.3439 F: 780.632.4274 24 Hour Emergency Line: 780.632.3439

Vegreville Centennial Library 4709 - 50 Street | PO Box 129 Vegreville, AB T9C 1R1 P: 780.632.3491 F: 780.632.2338 www.vegrevillelibrary.ab.ca