Issuu

2025

ANNUAL REPORT Town of Rocky Mountain House, Alberta For the Year Ended December 31, 2025

Town of Rocky Mountain House 5116 - 50 Avenue PO Box 1509 Rocky Mountain House, AB T4T 1B2 403-845-2866 www.rockymtnhouse.com 2025 Annual Report, for the year ended December 31, 2025. This report has been prepared by the Corporate Services Department, with support from Communications and all other Town Departments.

Town of Rocky Mountain House 2025 Annual Report

LAND ACKNOWLEDGEMENT The Town of Rocky Mountain House acknowledges the people who came before us on this land.

TABLE OF CONTENTS 3

Land Acknowledgement

SECTION 1: INTRODUCTION

Message from the Mayor

Meet our Council 2025-2029

Message from the Chief Administrative Officer

Strategic Plan 2026-2030

Legislative Authority

Organizational Chart

Senior Management

SECTION 2: FINANCIAL

Message from the Director of Corporate Services

Award for Financial Reporting

Financial Management Framework

Financial Statement Analysis

Audited Financial Statements

Management’s Responsibility for Financial Reporting

Independent Auditor’s Report

Consolidated Statement of Financial Position

Consolidated Statement of Operations

Consolidated Statement of Change in Net Financial Assets

Consolidated Statement of Cash Flows

Schedules of Consolidated Financial Statements

Notes to Consolidated Financial Statements

SECTION 3: STATISTICAL INFORMATION

Five-year Summary

Town of Rocky Mountain House 2025 Annual Report

SECTION 1:

INTRODUCTION

Town of Rocky Mountain House Annual Report

MESSAGE FROM

the Mayor The Town of Rocky Mountain House has been built by people who know the value of hard work. Folks here get up early, put in a full day, help their neighbours and take pride in where they live. And there’s a lot to be proud of. This annual financial and community report, for the year ending December 31, 2025, reflects on some of the challenges and triumphs of the 2025 fiscal year. Budget 2025 committed funds to future planning: designs for new municipal facilities, infill and outline plans so we can be ready for grant opportunities as they become available. These reports don’t just sit on a shelf – they inform Council’s decisions on recreation, planning and policing, and demonstrate to the public that we are making informed choices. The municipal police model study evaluated the best way to provide policing and public safety services in the Town of Rocky Mountain House. Policing makes up a large portion of the Town’s annual budget ($2.4 million/year), and this was important work to determine the best policing model for us. This work continues into 2026 with the evaluation of the Alberta Sheriffs as a possible police provider. Comprehensive public engagement was the foundation of our updated Recreation Master Plan, also completed in 2025. This plan informs the direction of capital and operation spending in recreation, and demonstrates the Town is responsive to the public’s wants and needs. In 2025, we saw the near completion of construction on our new Bike Park, the installation of a 9-hole Disc Golf Course, and the addition of a small dog area at the off-leash dog park, as well as additional trail amenities. Planning exercises for infill housing opportunities and the future redevelopment of the Rocky Elementary School site show us what’s possible if and when it is time to break ground.

Town of Rocky Mountain House 2025 Annual Report

Mayor Shane Boniface

We also held a General Municipal Election; the current Town Council took office in October. We thank the previous Council’s efforts and look forward to continuing their work and pursuing new projects that meet our Strategic Plan mission: The Town of Rocky Mountain House acts with integrity to serve people, build relationships and pursue growth. It is our greatest vision that The Town of Rocky Mountain House is a caring, cohesive and desirable community for all. The publication of this 2025 report is a commitment to citizens that we are being responsible, practical, fair and consistent with the Town’s legislative and fiscal functions. In all things, we remain compliant with the Municipal Government Act of Alberta. Council is committed to earning your trust and doing right by this community. That is the kind of government we believe in, and how we intend to lead the Town of Rocky Mountain House forward. Sincerely, Mayor Boniface on behalf of Town of Rocky Mountain House Council

MEET OUR

COUNCIL 2025-2029 Town Council is elected at large by residents to serve a four-year term and governs in accordance with powers granted under the Municipal Government Act. Town Council consists of a Mayor and six Councillors and provides strategic direction to Administration through a variety of plans, bylaws, policies and other governance processes.

Councillor Denise Boniface

Councillor Trevor Kalyn

Councillor Ken Moesker

Councillor Dale Shippelt

Councillor Justin Sinclair

Councillor Kevin Stalker

COUNCIL BOARDS & COMMITTEES Town of Rocky Mountain House Council boards and committees play an important role in supporting good local governance and community decision-making. Established through provincial legislation and municipal bylaws, these groups bring together elected officials and appointed public members to examine issues, provide recommendations and help ensure a well-rounded approach to addressing community needs and priorities. By contributing their knowledge, experience and perspectives, board and committee members help shape programs, services and initiatives that benefit the community. Serving on a board or committee is a valuable opportunity for residents to become involved in local government and have a voice in the future of the Town. Positions are typically advertised each September, with appointments made by Council in October for the upcoming term. For information on how to get involved, visit www.rockymtnhouse.com/p/boards-committees.

Town of Rocky Mountain House Annual Report

Chief Administrative Officer Dean Krause

MESSAGE FROM

the CAO I am pleased to again introduce this comprehensive annual community financial report on behalf of Administration for the Town of Rocky Mountain House. This report outlines Town operations for the 2025 calendar year. It builds on the 2024 report and showcases, again, streamlined governance and accounting that meets or exceeds all our legislative obligations and strategic plan goals. I give my utmost gratitude to the staff who work diligently to maintain our finances and operations at this high level. Across all departments, we are constantly reviewing service level expectations with Council, finding efficiencies, and reducing costs. This is an ongoing process to ensure the needed and wanted services in our community are provided in the best way. I am proud to be a part of the Town of Rocky Mountain House team going into 2026 and I look forward to reflecting on even more progress and achievements in the years to come. Dean Krause CLGM CPT Chief Administrative Officer (CAO), Town of Rocky Mountain House

Town of Rocky Mountain House 2025 Annual Report

STRATEGIC PLAN 2026-2030 Council has formally adopted a new Strategic Plan that will guide the Town's priorities and decision‑making over the coming years. Developed through thoughtful discussion and community input, the plan is based on four simple but important ideas: making sure Rocky Mountain House is a good place to earn a living and a great place to live; keeping the Mayor and Council accountable to the people who elected them; and ensuring the Town as a corporate entity is around for the generations still to come.

ON TARGET FOR

g etin rk

ent pm Plannin g

d Reten n an tio tio Ma

siness Attr Bu ac

Dev elo

We have identified these ideas under the banner of our Community Values. They are:

ECONOMIC PROSPERITY We advance sustainable economic and community growth by prioritizing shovelready development opportunities, enabling inclusive planning, strengthening business attraction and retention, and promoting Rocky Mountain House as a competitive and desirable place to invest, live and work.

EMBRACING ADVOCACY

POSITIVITY PRIDE IN OUR SAFETY COMMUNITY

SERVICES

FACILITIES RECREATIONAL&

CULTURAL VIBRANCY

LIVABILITY We foster a vibrant, inclusive and safe community by enhancing recreational and cultural opportunities, strengthening community pride and well-being, advocating for diverse and attainable housing, and promoting proactive approaches to safety and security so residents feel connected, supported and proud to call Rocky Mountain House home.

COMMITTED TO REGIONAL

INTEGRITY RELATIONSHIPS

MEANINGFUL PUBLIC ENGAGEMENT RELEVANT BYLAWS

& POLICIES

GOVERNANCE EXCELLENCE We value relationships with residents, neighbouring municipalities and higher levels of government that allow us to serve our community and advance our vision of a cohesive, desirable community for all. We commit to legislative integrity and clarity around our governance decisions and actions.

GUARANTEEING TECHNOLOGY

INFRASTRUCTURE

MAINTENANCE

ACCOUNTABILITY

SERVICE

DELIVERY

FISCAL

ORGANIZATIONAL DURABILITY We ensure long-term sustainability and organizational excellence by maintaining resilient infrastructure, upholding fiscal responsibility, delivering innovative and responsive services, and leveraging technology to enhance operations and community engagement.

Town of Rocky Mountain House Annual Report

LEGISLATIVE AUTHORITY As per the Municipal Government Act (MGA), a municipality exists to provide responsible local governance, deliver essential services, and support the long-term social, economic, and environmental well-being of the community while maintaining a safe, sustainable place for residents to live, work, and thrive. Additionally, municipalities must collaborate with neighbouring municipalities to plan, deliver and fund intermunicipal services.

SERVICES Services are provided in several key areas to meet MGA mandates:

General Government Mayor, Council and administration which includes CAO administration, legislative services, communications, finance, information technology, human resources and risk management.

Council has identified which services are core, supplementary and discretionary under the Core Services Policy 009/2023. This provides clarity to the public on responsibility and guides in the budgeting process. Core services are required in the budget and discretionary services are a higher priority than supplementary services.

Protective Services Policing, fire services, community/bylaw enforcement, occupational health and safety and disaster services.

Operations Road maintenance, snow removal, fleet maintenance, airport and storm sewer operations.

CORE SERVICES Services and the related assets that are legislated and/or required for the health and safety of the residents.

Environmental Services Water supply and distribution, wastewater collection, treatment and distribution, solid waste and environmental stewardship.

Social Services Clearwater Regional Family and Community Support Services, social housing programs and cemetery services.

Planning & Development Community planning and development, subdivision and land use bylaw development and management, building inspections and economic development.

Recreation and Cultural Services Recreational programs, arena, pool, parks, sports fields, community center and library operations.

Town of Rocky Mountain House 2025 Annual Report

DISCRETIONARY SERVICES

Services and the related assets that enhance the quality of life for the residents but are not legislatively required or imperative for health & safety.

SUPPLEMENTARY SERVICES Services that are the responsibility of another level of government or organization that improve the quality of life of residents.

ORGANIZATIONAL CHART Residents

LEGISLATIVE

Councillor

Mayor

Councillor

ADMINISTRATION The Chief Administrative Officer leads the Senior Management Team, consisting of six members, who work to make Town Council’s strategic direction a reality.

Legislative & Protective Services

Communications

Public Engagement

Councillor

Policing Committee

RCMP

Chief Administrative Officer

Corporate Services

Planning & Community Development

Engineering & Operations

Recreation & Community Services

Legislative Services

Finance

Planning & Development

Engineering

Recreation Facilities

Community Enforcement

Human Resources

Economic Development

Roads

Recreation Programming

Municipal Emergency Management

Information Systems

Tourism

Utilities & Environment

Sport Fields & Playgrounds

Records Management

Occupational Health & Safety

Parks & Trails

Community Centre

Cemetery

Building Maintenance

Airport

Social Housing

Regional or Shared Services Regional Fire Services

RCMP

Policing Committee

Library

FCSS

Town of Rocky Mountain House Annual Report

Left to right: Legislative & Protective Services Manager - Tracy Breese, CAO - Dean Krause, Director of Engineering & Operations - Rob Shanks, Director of Corporate Services - Betty Quinlan, Director of Recreation & Community Services - Wes Amendt, Communications Coordinator - Laura Button, Director of Planning & Community Development - Dean Schweder

1AIRPORT

YEARS

OF 226 HISTORY SETTLEMENT

CYRM

& 5 CULTURE RECREATION FACILITIES

18 TRAIL SYSTEM KM

$1.05B ASSESSMENT VALUE 275 ACRES

GREENSPACE

COURTS

12 OUTD

FIELDS & FACILITIES

R OO

TENNIS & PICKLEBALL

$11.7 MILLION

CONSTRUCTION VALUE

20 PL

517

BUSINESS LICENSES

OUNDS

WATER 56 DISTRIBUTION KM INFRASTRUCTURE 12

Town of Rocky Mountain House 2025 Annual Report

58 PAVED

KM ROADS

SECTION 2:

FINANCIAL

Town of Rocky Mountain House Annual Report

MESSAGE FROM

Director of Corporate Services Betty Quinlan

the Director of Corporate Services

April 30, 2026 I am pleased to present the seventh Annual Financial Report for the Town of Rocky Mountain House. This 2025 report aims to deliver a clear and concise update on the Town's activities and financial status. By expanding upon the audited financial statements, readers will gain a comprehensive understanding of the Town's initiatives and how they relate to the financial statements. The annual report includes much more than just the audited financial statements. It offers a detailed analysis, five-year comparative financial information and additional economic data, providing a comprehensive overview of the Town's financial health and economic environment. In compliance with Section 276 of the Municipal Government Act (MGA) of Alberta, all municipalities must undergo an audit and prepare audited statements in line with the principles and standards set by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada. This ensures consistent reporting and reliability of the information presented.

Town of Rocky Mountain House 2025 Annual Report

Management is responsible for preparing financial statements that accurately reflect the Town's activities, including financial information and disclosures. This information provides valuable insights for both internal and external users on how the town delivers services and meets its objectives. Guided by the Council's strategic plan, the Town strives to provide high-quality, fiscally responsible, and environmentally sustainable services, aiming to foster a vibrant, diverse community where people and businesses can thrive. I would like to extend my gratitude to everyone involved in this process. Your dedication and hard work have been crucial to our success. Thank you for your ongoing support and commitment to our Town’s financial integrity. Betty Quinlan B.Comm CPA CMA Director of Corporate Services Town of Rocky Mountain House

Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the Town of Rocky Mountain House for its annual financial report for the fiscal year ended December 31, 2024. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports. In order to be awarded a Canadian Award for Financial Reporting, a government unit must publish an easily readable and efficiently organized annual financial report, whose contents conform to program standards. Such reports should go beyond the minimum requirements of generally accepted accounting principles and demonstrate an effort to clearly communicate the municipal government’s financial picture, enhance an understanding of financial reporting by municipal governments, and address user needs.

Award for Financial Reporting

A Canadian Award for Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Canadian Award for Financial Reporting program requirements, and we are will be submitting it to GFOA to determine its eligibility for another award.

Town of Rocky Mountain House Annual Report

FINANCIAL MANAGEMENT

FRAMEWORK

The Town’s Financial Management Framework provides a disciplined and transparent approach to planning, budgeting, and delivering municipal services. It aligns Council’s strategic priorities with operational planning and financial decision-making, ensuring resources are directed to the services, programs, and infrastructure that matter most to residents. At the foundation of the framework is Council’s Strategic Plan, which establishes the community’s vision, priorities, and long-term objectives. Reviewed annually, the Strategic Plan guides decisions about service delivery, resource allocation, and investment in community infrastructure. A key component of this framework is the Service Level Review process, which helps Council evaluate municipal services, establish priorities, and ensure resources are aligned with community needs and financial capacity.

SERVICE LEVEL REVIEW Service Level Reviews are an important part of the Town’s planning and budgeting process. They provide a structured approach to evaluating municipal programs and services to ensure they remain relevant, effective, and financially sustainable.

Town of Rocky Mountain House 2025 Annual Report

Through this process, programs and services are reviewed to: Confirm their purpose and community value Define current service levels Identify opportunities for improvement and efficiency Align services with Council’s priorities and available resources Programs are evaluated and classified in accordance with Council’s Core Services Policy, creating a consistent and transparent foundation for budget development and resource allocation.

FINANCIAL POLICIES AND INTERNAL CONTROLS The Town is committed to the responsible stewardship of public funds through strong governance, sound financial management practices, and accountability to residents. A comprehensive framework of financial policies and internal controls safeguards municipal assets, manages financial risk, and ensures compliance with legislative and accounting requirements. These measures provide oversight throughout the organization and support informed decision-making by Council and Administration.

Key financial controls include: Defined approval authorities and spending limits Segregation of financial responsibilities Regular review and reconciliation of financial records Quarterly financial reporting Independent annual financial audit Supporting policies govern: Budgeting and taxation Procurement and purchasing Asset management Disposal of surplus assets Signing authority Tangible capital assets Environmental liabilities Corporate credit card use Council remuneration Reserve and surplus management Related-party disclosures

Measurement of Strategic Plan Goals

A central objective of the budgeting process is to balance current service demands with long-term financial sustainability. This requires careful consideration of operating requirements, infrastructure investment, funding opportunities, reserve levels, debt obligations, and future growth.

Service Level Review

Budget Annual Audit Interim Financial Reporting

Annual Activity

The budget is more than an annual spending plan—it is the Town’s primary tool for aligning financial resources with strategic priorities and community needs. The budget includes: An annual operating budget with a four-year financial forecast An annual capital budget with a ten-year capital plan

Together, these policies strengthen financial accountability, support effective governance, and maintain public confidence in the management of taxpayer resources.

Strategic Plan

LONG-TERM FINANICAL PLANNING AND BUDGETING

In developing the budget, Council considers: Community priorities and service expectations Available grant funding Existing and projected tax revenues Future operating and maintenance costs Debt financing and repayment requirements Infrastructure renewal and replacement needs This balanced approach supports continued investment in municipal infrastructure and community services while maintaining affordability for taxpayers and preserving the Town’s long-term financial health.

FINANCIAL REPORTING AND ACCOUNTABILITY Regular financial reporting enables Council to monitor performance, evaluate results, and ensure public resources are managed responsibly. Throughout the year, Administration provides: Quarterly financial reports Budget-to-actual comparisons Variance analysis and performance updates These reports provide transparency, support informed decision-making, and help Council respond proactively to emerging opportunities and challenges. Following year-end, a comprehensive financial review is presented to Council after completion of the annual audit, providing a final assessment of the Town’s financial position and operating results.

Town of Rocky Mountain House Annual Report

INDEPENDENT ANNUAL AUDIT Transparency and accountability are further strengthened through an independent annual financial audit, as required under the Municipal Government Act. The external auditor reviews the Town’s financial records, accounting practices, and financial statements, and provides an independent opinion on whether the financial statements fairly present the Town’s financial position in accordance with Canadian Public Sector Accounting Standards. For 2025, Baker Tilly WCR LLP serves as the Town’s independent external auditor.

AUDIT COMMITTEE RESPONSIBILITIES The Audit Committee, consisting of all members of Council, provides oversight of the Town’s financial reporting and audit process. The Committee is responsible for: Appointing the external auditor Approving the audit engagement Reviewing audit findings and recommendations Approving the audited financial statements Ensuring Administration fulfills its financial stewardship responsibilities Through independent oversight, rigorous review, and strong governance practices, the Audit Committee helps maintain public confidence in the Town’s financial management and reinforces Council’s commitment to accountability, transparency, and responsible stewardship of public resources.

REGIONAL RELATIONSHIPS The Town of Rocky Mountain House operates independently but collaborates with regional entities to enhance services. Key partnerships include Clearwater County and Parkland Regional Library Board. Numerous other service groups also share resources or information to improve service delivery.

Town of Rocky Mountain House 2025 Annual Report

PROSPECTS FOR THE FUTURE The Town of Rocky Mountain House remains committed to providing sound financial stewardship for the public it serves. A fully funded 10-year capital plan has been developed and approved, ensuring continued maintenance of infrastructure and services while preserving the necessary financial reserves for future needs. Through strategic planning, service level reviews and a rigorous budgeting process, Council ensures Town operations are running as efficiently as possible. With the Town’s financial house in order and the supporting legislative and policy framework established, Council’s new Strategic Plan focuses in part on setting the Town up for future opportunities. The 2026 budget allots funds for the development of serviced, shovel-ready land for residential and commercial use, positioning for phase 1 of a new multi-plex and a commitment to housing for all now, and in the future. This priorities will allow the Town to quickly and effectively respond to new opportunities as they arise.

Town of Rocky Mountain House Annual Report

FINANCIAL STATEMENT

ANALYSIS

FINANCIAL POSITION AND OPERATING RESULTS The audited statements provide a comprehensive overview through consolidated statements of: Financial position Operations Changes in net financial assets Cash flows

Town of Rocky Mountain House 2025 Annual Report

Additionally, several supporting schedules detail major activity categories, accompanied by notes that explain balance sheet items and other operational activities throughout the year. These statements reflect the Town's operational activities for the 2025 fiscal year.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION This statement presents the assets and liabilities at a specific point in time, highlighting the Town's financial position by showcasing net financial assets and accumulated surplus.

CONSOLIDATED FINANCIAL POSITION

Financial assets include cash, investments, accounts receivable, and land held for resale and inventory for consumption. Liabilities comprise accounts payable, deferred revenue, long-term debt, and asset retirement obligations. The difference between assets and liabilities represents the net financial position, indicating the amount of cash the organization would have if all assets and liabilities were liquidated. The Town demonstrates a strong financial position with growing reserve balances and net financial assets (remaining assets after liabilities are paid) amounting to $25 million. Non-financial assets have increased by $11 million from 2024 due to the completion of capital projects being added to tangible capital assets. This figure is expected to rise significantly in 2026 with the completion of the $30 million wastewater treatment plant.

in 000s

2025

2024 Change

Assets

41,721

45,196

(3,475)

Liabilities

16,861

22,277

(5,416)

Net Financial Assets

24,860 22,919

1,941

Tangible Capital Assets 127,751 117,246 (Net)

10,505

Non-Financial Assets

Inventory, Prepaid Expenses & Deposits

426

161

265

Total Non-Financial Assets

128,177 117,407

10,770

Accumulated Surplus

153,037 140,326

12,711

Assets in 2025 were lower than in 2024 by $3.5 million as the funds received for the wastewater treatment plant are being spent during the construction. Liabilities decreased by $5.4 million due to the consumption of deferred revenue for various capital projects, the majority of which was for the wastewater treatment plant.

Town of Rocky Mountain House Annual Report

CONSOLIDATED STATEMENT OF OPERATIONS This statement reflects the operating activities for the year, including any capital funding received for tangible capital asset projects. Municipalities prepare an annual operating budget, and activities are measured against this budget. This statement is a key document for the Council as it demonstrates how well the organization met the goals and activities outlined in the budget.

CONSOLIDATED OPERATING RESULTS

The surplus or deficit for the year, shown as the excess of revenue over expenses, serves as a critical performance and accountability measure.

Gain on disposal of Tangible Capital Assets

316

(316)

Conributed assets

786

(786)

Overall, financial activities for 2025 closely aligned with the budget, with very small variances throughout. Operating activities concluded with a surplus of $1.9 million.

Government transfers for capital

11,587

9,722

1,865

Total Other

11,587

10,824

763

Excess of Revenue over Expenses

11,488

12,710 (1,222)

Accumulated Surplus, Beginning of the Year

140,327 140,327

Accumulated Surplus, End of the Year

151,815 153,037 (1,222)

Revenues were higher than budget by $679,000 due to higher recreation user fees and rentals along with higher grants and donations for projects and grants received that were not anticipated when the budget was prepared. This includes the energy manager and provincial recycling program grants. Expenditures were $1.3 million under budget. Expenditures were lower in protective services costs in RCMP, Fire and Bylaw due to vacant positions during the year in RCMP and Bylaw and lower fire billings because they were able to generate more revenue than planned. Water and wastewater are under budget, however, any surplus in these areas is transferred to reserves. The operational expense budget for the new wastewater treatment plant of $500,000 was not utilized as the opening of the plant was delayed until 2026. Parks and recreation expenditures are over budget because there has been higher use of recreational facilities. This is offset by increased revenue and is due to additional staff being required to accommodate higher customer usage at the pool. The accumulated surplus increased by $1.2 million, reflecting both the annual operational surplus and the addition of tangible capital assets.

Town of Rocky Mountain House 2025 Annual Report

in 000s

Budget

Revenues

24,666

25,345

(679)

Expenses

24,765

23,459

1,306

Subtotal before Other

(99)

2025 Change

1,886 (1,985)

Other

COMPARISON TO PRIOR YEAR Revenues in 2025 were $220,000 higher than in 2024. Revenues increased by $1.4 million but this was offset by the $1 million donation received in 2024. The major factors contributing to this increase are: Property Tax Increase: A 1.77% increase generated an additional $277,000 and new assessment generated $36,000 Sales & User Fees, Permits & Licenses, and Franchise Fees: New utility rates and higher user fees in recreation generated an additional $758,000 in revenue. Grant Revenue: Additional operating grant revenue was received in 2025 due to the implementation of extended producer responsibility (EPR) being responsible for recycling costs through a grant program to municipalities.

REVENUES PRIOR YEAR COMPARISON in 000s (unaudited)

2025

2024 Variance

Taxation

10,038

9,761

277

Advertising, Sponsorships & Rentals

1,072

876

196

Licenses & Fines

450

537

(87)

Franchise Fees

1,690

1,618

Investment Income

1,251

1,465

(214)

User Fees and Sale of Goods

6,812

6,054

758

Grants

4,023

3,624

399

Other

Total Revenues

1,188 (1,181)

25,343 25,123

220

Expenses in 2025 were $778,000 higher than in 2024.

EXPENSES BY OBJECT YEAR OVER YEAR

The primary areas of change include: Salaries and Benefits: Increased in 2025 due to additions of 2.5 new positions. Contracted Services: Were higher in 2025 due to a number of one-time consulting projects in planning, recreation and policing.

in 000s (unaudited)

2025

2024 Variance

Salaries & benefits

8,742

8,406

336

Contracted services

6,340

5,848

492

Materials, goods & supplies

2,375

2,395

(20)

Bank charges and short term interest

(1)

Interest on long term debt

106

(17)

Transfers to local boards and organizations

2,014

2,417

(403)

Amortization of TCA

3,733

3,485

248

Accretion of asset retirement obligations

143

23,460 22,682

778

Total Expenses

Town of Rocky Mountain House Annual Report

REVENUES The operating results for the year show that revenues were higher than budget by $679,000 due to higher recreation user fees and rentals along with higher grants and donations for projects and grants received that were not anticipated when the budget was prepared. This includes the energy manager and provincial recycling program grants.

REVENUES BY TYPE in 000s (unaudited) Taxation

Town of Rocky Mountain House 2025 Annual Report

Actual Variance

9,966

10,039

Advertising, Sponsorships & Rentals

796

1,073

277

Licenses & Fines

425

450

Franchise Fees

1,752

1,690

(62)

Investment Income

1,254

1,251

(3)

User Fees and Sale of Goods

6,627

6,812

185

Grants

3,845

4,023

178

Other

24,666

25,345

679

Total Revenues

Budget

EXPENSES Overall Expenses: The total expenditures for the year were very close to the budgeted amounts, and were under budget by $1.3 million, including amortization. Regular Operating Expenses: Regular operating expenditures are $1.7 million under budget. The main areas consisting of utilities being under by $1.1 million as the opening of the wastewater treatment plant was delayed until 2026. There were several vacant positions during the year which brought salaries and benefits under budget. Amortization: Amortization was over budget as there were several large new assets added in 2025 that were not included in the amortization projection when it was prepared for the budget. As a non-cash transaction, this overage does not impact the cash flow directly but affects the overall accounting of asset depreciation.

EXPENSES BY OBJECT COMPARED TO BUDGET in 000s (unaudited)

Budget

Salaries & benefits

8,951

8,742

Contracted services

7,404

6,340 (1,064)

Materials, goods & supplies

2,570

2,375

(195)

Bank charges and short term interest

Interest on long term debt

315

(226)

transfers to local boards and organizations

2,036

2,014

(22)

Amortization of TCA

3,474

3,732

258

143

Accretion of asset retirement obligations Total Expenses

24,765

Actual Variance (209)

23,459 (1,306)

EXPENSES BY DIVISION in 000s (unaudited)

Budget

Actual Variance

Administration

2,658

2,717

Protective Services

4,751

4,252

(499)

Operations

3,599

3,409

(190)

Utilities

6,002

5,157

(845)

Social Services & Public Health

840

838

(2)

Planning & Development

1,198

1,165

(33)

Recreation & Culture

5,717

5,921

204

Total Expenses

24,765

23,459 (1,306)

Town of Rocky Mountain House Annual Report

CONSOLIDATED STATEMENT OF CHANGES IN NET FINANCIAL ASSETS The Statement of Changes in Net Financial Assets provides a reconciliation of the change in net financial assets between the current period and the prior year. This statement connects the annual operating surplus or deficit, as reported in the Statement of Operations, to the change in net assets indicated in the Statement of Financial Position. The main variances are due to a higher surplus than planned and a lower increase in capital assets because due to the delay in completing the wastewater treatment plant.

STATEMENT OF CHANGES IN NET FINANCIAL ASSETS in 000s (unaudited)

Budget

Actual Variance

Excess of Revenue Over Expenses

11,487

12,710

Change in tangible capital assets

(15,555)

1,223 5,050

(10,505)

Change in inventories

(128)

Change in prepaid assets

(136)

Increase (Decrease) for the Year

(4,068)

1,941

6,009

Net Financial Assets Beginning of the Year

22,919

Net Financial Assets End of the Year

18,851

24,860

6,009

CONSOLIDATED STATEMENT OF CASH FLOWS The Statement of Cash Flows explains the change in cash and cash equivalents from the prior year and provides information about how cash is generated to meet the needs for the year. The layout shows how the Town financed its activities.

Town of Rocky Mountain House 2025 Annual Report

STATEMENT OF CASH FLOWS in 000s (unaudited)

2025

2024

Excess of Revenue Over Expenses

12,710

15,614

Cash from operating transactions

15,309

13,422

Cash applied to capital transactions

(13,151)

(16,404)

Cash provided by investing transactions

(5,214)

(5,000)

Cash provided by financing transations

(2,813)

(629)

Change in Cash & Equivalents during the Year

(5,869)

(8,611)

Net Financial Assets Beginning of the Year

30,362

38,973

Net Financial Assets End of the Year

24,493

30,362

AUDITED FINANCIAL STATEMENTS For the year ended December 31, 2025

Town of Rocky Mountain House Annual Report

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Town of Rocky Mountain House 2025 Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

Town of Rocky Mountain House Annual Report

Town of Rocky Mountain House 2025 Annual Report

____________________ BAKER TILLY WCR LLP Suite #201, 5133 - 49 Street P.O. Box 100 Rocky Mountain House, AB Canada, T4T 1A1 O: 1 (403) 845-3226 F: 1 (403) 845-5666

INDEPENDENT AUDITORS' REPORT To the Mayor and Council of the Town of Rocky Mountain House Opinion We have audited the accompanying consolidated financial statements of the Town of Rocky Mountain House (the "Town"), which comprise the consolidated statement of financial position as at December 31, 2025, and the consolidated statements of operations, changes in net financial assets and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects the consolidated financial position of the Town as at December 31, 2025, and the results of its consolidated operations, change in net financial assets and 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 Auditors' 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 these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the consolidated financial statements and our auditors' report thereon. The Annual Report is expected to be made available to us after the date of this auditors' report. Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the annual report, if we conclude that there is a material misstatement of this other information, we are required to report that fact to the Mayor and Council.

Town of Rocky Mountain House Annual Report

INDEPENDENT AUDITORS' REPORT (Continued)

Responsibilities of management and Council 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 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 related to going concern and using the going concern basis of accounting unless management either intends to liquidate or to cease operations, or has no realistic alternative but to do so. Council is responsible for overseeing the Town's financial reporting process. Auditors' 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 auditors' 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 auditors' 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.

Town of Rocky Mountain House 2025 Annual Report

INDEPENDENT AUDITORS' REPORT (Continued)

We communicate with Council 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.

Rocky Mountain House, Alberta April 27, 2026

Chartered Professional Accountants

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE CONSOLIDATED STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2025

2025 FINANCIAL ASSETS Cash and cash equivalents (Note 2) Receivables Taxes receivable (Note 3) Trade and other receivables (Note 4) GST receivable Land for resale inventory Investments (Note 5) Long-term receivable (Note 6) LIABILITIES Bank demand loan Accounts payable and accrued liabilities Accounts payable - tangible capital assets Employee benefit obligations (Note 7) Payroll remittances payable Security deposits (Note 8) Deferred revenue (Note 9) Long-term debt (Note 10) Asset retirement obligation (Note 11)

Contractual Rights, Contractual Obligations and Contingencies - See note 16

Town of Rocky Mountain House 2025 Annual Report

2,582,208 3,219,915 531,896 120,162 174,266 1,465,765 7,338,359 1,427,999 16,860,570

30,361,979 373,648 5,951,945 234,392 944,522 5,000,000 2,329,815 45,196,301

41,720,740

NON - FINANCIAL ASSETS Tangible capital assets (Schedule 2) Inventory for consumption Prepaid expenses and deposits

See accompanying schedules and notes to the financial statements.

364,064 5,556,634 106,544 985,522 10,214,027

NET FINANCIAL ASSETS

ACCUMULATED SURPLUS (Schedule 1, Note 14)

24,493,949

2024

2,224,036 2,341,870 2,482,306 523,648 99,167 212,989 5,180,380 7,927,082 1,285,415 22,276,893

24,860,170

22,919,408

127,751,069 216,968 208,832 128,176,869

117,245,632 88,383 73 197 117,407,212

153,037,039

140,326,620

TOWN OF ROCKY MOUNTAIN HOUSE

CONSOLIDATED STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2025 Budget (Unaudited)

2025

9,964,514 6,627,413 3,845,069 1,254,000 269,300 1,752,462 155,600 63,000 733,495 700 24,665,553

$ 10,008,065 30,843 6,811,969 4,022,688 1,250,924 211,695 1,690,337 238,271 197,149 876,398 7,100 25,345,439

373,871 2,283,041 4,751,163 3,598,701 2,637,102 2,218,017 1,147,238 716,453 1,198,411 5,043,405 674,428 123,642 24,765,472

391,901 2,325,389 4,252,090 3,408,640 2,526,650 1,463,157 1,166,900 699,320 1,165,495 5,253,143 667,691 138,838 23,459,214

355,161 2,269,398 4,498,966 3,415,232 2,481,434 1,452,794 1,008,272 731,241 940,152 4,781,806 617,841 129,202 22,681,499

(99,919)

1,886,225

2,444,040

CAPITAL REVENUE Contributed assets Gain (loss) on disposal of tangible capital assets Government transfers for capital (Schedule 4) TOTAL CAPITAL REVENUE

11,586,909 11,586,909

786,000 316,603 9,721,591 10,824,194

374,000 (851) 12,796,840 13,169,989

EXCESS OF REVENUES OVER EXPENSES

11,486,990

12,710,419

15,614,029

ACCUMULATED SURPLUS, BEGINNING OF YEAR

140,326,620

124,712,591

ACCUMULATED SURPLUS, END OF YEAR

$151,813,610

$153,037,039

$140,326,620

REVENUE Net municipal taxes (Schedule 3) Local improvements User fees and sale of goods Government transfers for operating (Schedule 4) Investment income Penalties and costs of taxes Franchise and concessions Licenses and permits Advertising and sponsorships Rentals Other revenues Total Revenue

EXPENSES Legislative Administration Protective services Roads, streets, walks, lighting Water supply and distribution Wastewater treatment and disposal Waste management Family and community support Planning and development Parks and recreation Culture Public health Total Expenses (Schedule 5) EXCESS OF REVENUES OVER EXPENSES - BEFORE CAPITAL REVENUE

2024 $

9,749,116 13,308 6,053,689 3,624,086 1,465,103 267,379 1,617,735 269,938 75,200 801,685 1,188,300 25,125,539

See accompanying schedules and notes to the financial statements.

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS YEAR ENDED DECEMBER 31, 2025 Budget (Unaudited)

2025

2024

$ 11,486,990

$ 12,710,419

$ 15,614,029

(3,107,542) (15,921,731) 3,474,250 (15,555,023)

(2,541,256) (11,054,552) (786,000) 445,294 3,732,679 (301,603) (10,505,438)

(7,589,655) (8,914,432) (374,000) 99,930 3,484,519 851 (13,292,787)

(128,584) (135,635)

14,462

DECREASE (INCREASE) IN NET DEBT

(4,068,033)

1,940,762

2,335,704

NET FINANCIAL ASSETS, BEGINNING OF YEAR

22,919,408

20,583,704

$ 18,851,375

$ 24,860,170

$ 22,919,408

EXCESS OF REVENUES OVER EXPENSES Acquisition of tangible capital assets Acquisition of construction-in-progress Contributed tangible capital assets Proceeds on disposal of tangible capital assets Amortization of tangible capital assets (Gain) on disposal of tangible capital assets

Net acquisition of supplies inventories Net acquisition of prepaid assets

NET FINANCIAL ASSETS, END OF YEAR See accompanying schedules and notes to the financial statements.

Town of Rocky Mountain House 2025 Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2025 2025

2024

$ 12,710,419

$ 15,614,029

3,732,679 (786,000) (301,603)

3,484,519 (374,000) 851

9,584 523,165 (41,000) (128,584) (135,635) 2,329,815 1,007,184 (3,714,615) (38,723) 142,584

(2,262) (1,741,865) 14,462 (165,570) 1,137,471 (4,410,559) 49,474 (184,157)

Cash provided by operating transactions

15,309,270

13,422,393

CAPITAL Purchase of tangible capital assets Acquisition of construction-in-progress Proceeds on sale of tangible capital assets Cash applied to capital transactions

(2,541,256) (11,054,552) 445,294 (13,150,514)

(7,589,655) (8,914,432) 99,930 (16,404,157)

INVESTING Purchase of investments Cash provided by (applied to) investing transactions

(5,214,027) (5,214,027)

(5,000,000) (5,000,000)

FINANCING Long-term debt repaid (Repayment) issuance of demand loans Cash provided by financing transactions

(588,723) (2,224,036) (2,812,759)

(806,843) 177,384 (629,459)

CHANGE IN CASH AND EQUIVALENTS DURING THE YEAR

(5,868,030)

(8,611,223)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

30,361,979

38,973,202

$ 24,493,949

$ 30,361,979

NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES: OPERATING Excess Of Revenues Over Expenses Non-cash items included in excess of revenues over expenses: Amortization of tangible capital assets Tangible capital assets received as contributions (Gain) loss on sale of capital assets Non-cash charges to operations (net change): Decrease (increase) in taxes receivable Decrease (increase) in trade and other receivables Decrease (increase) in inventory of land for resale Decrease (increase) in inventory for consumption Decrease (increase) in prepaid expenses Decrease (increase) in long-term receivables Increase (decrease) in accounts payable and accrued liabilities Increase (decrease) in deferred revenue Increase (decrease) in security deposits Increase (decrease) in asset retirement obligation

CASH AND CASH EQUIVALENTS AT END OF YEAR

For description of cash and cash equivalents, see Note 2. See accompanying schedules and notes to the financial statements.

Town of Rocky Mountain House Annual Report

Town of Rocky Mountain House 2025 Annual Report

BALANCE, END OF YEAR

Change in accumulated surplus

Excess Of Revenues Over Expenses Restricted funds used for operations Unrestricted funds designated for future use Restricted funds used for tangible capital assets Current year funds used for tangible capital assets Contributed tangible capital assets Disposal of tangible capital assets Annual amortization expense Asset retirement obligation Capital long-term debt repaid

BALANCE, BEGINNING OF YEAR

3,115,228

922,209

(12,161,482) (786,000) 143,691 3,732,679 142,584 (525,920)

12,710,419 697,631 (3,031,393) -

2,193,019

Unrestricted Surplus

30,284,430

899,436

(697,631) 3,031,393 (1,434,326)

29,384,994

Restricted Reserves

$ 119,637,380

10,888,774

12,161,482 786,000 (143,691) (3,732,679) (142,584) 525,920

1,434,326

$ 108,748,606

Equity in Tangible Capital Assets

$ 153,037,039

12,710,419

12,710,419 -

$ 140,326,620

2025 TOTAL

SCHEDULE OF CHANGES IN ACCUMULATED OPERATING SURPLUS FOR THE YEAR ENDED DECEMBER 31, 2025 SCHEDULE 1

TOWN OF ROCKY MOUNTAIN HOUSE

$ 140,326,620

15,614,029

15,614,029 -

$ 124,712,591

2024 TOTAL

Town of Rocky Mountain House Annual Report

2024 NET BOOK VALUE OF TANGIBLE CAPITAL ASSETS

5,750,873

4,161,565

4,683,348

7,045,490

315,808

6,729,682

11,728,838

837,591

10,891,247

Land Improvement

20,120,674

19,727,496

10,443,266

635,103

9,808,163

30,170,762

241,925

29,928,837

Buildings

81,257,913

91,577,815

53,321,620

2,236,389

51,085,231

144,899,435

11,054,552

1,501,739

132,343,144

Engineering Structures

4,915,317

4,881,270

3,904,306

(589,796)

404,029

4,090,073

8,785,576

(648,488)

428,674

9,005,390

Machinery and Equipment

Engineering structures of $786,000 (2024 - $374,000) were acquired as contributed tangible capital assets.

BALANCE, END OF YEAR

NET BOOK VALUE OF TANGIBLE CAPITAL ASSETS

Less: amortization on disposals

ACCUMULATED AMORTIZATION: BALANCE, BEGINNING OF YEAR

5,750,873

Add: amortization

Disposal of tangible capital assets

BALANCE, END OF YEAR

Acquisition of construction-in-progress

5,750,873

Acquisition of tangible capital assets

COST BALANCE, BEGINNING OF YEAR

Land

TOWN OF ROCKY MOUNTAIN HOUSE SCHEDULE OF TANGIBLE CAPITAL ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025 SCHEDULE 2

1,039,290

1,130,267

1,526,718

(615,880)

141,350

2,001,248

2,656,985

(700,880)

317,327

3,040,538

Vehicles

76,241,400

(1,205,676)

3,732,679

73,714,397

$ 117,245,632

$ 127,751,069

$ 203,992,469

(1,349,368)

11,054,552

3,327,256

$ 190,960,029

2025 TOTAL

73,714,397

(1,393,308)

3,484,519

71,623,186

$ 117,245,632

$ 190,960,029

(1,537,517)

8,914,432

8,007,083

$ 175,576,031

2024 TOTAL

TOWN OF ROCKY MOUNTAIN HOUSE SCHEDULE OF PROPERTY AND OTHER TAXES FOR THE YEAR ENDED DECEMBER 31, 2025 SCHEDULE 3

TOTAL MUNICIPAL TAXES Real property tax Linear Property Grants in place of property taxes Special assessments and local improvement taxes

Budget (Unaudited)

2025

2024

$ 12,798,320 151,793 91,516 3,324 13,044,953

$ 13,056,057 197,273 116,068 17,894 13,387,292

$ 12,494,510 182,974 92,716 8,506 12,778,706

2,952,952 127,487 3,080,439

3,214,636 164,591 3,379,227

2,873,875 155,715 3,029,590

9,964,514

$ 10,008,065

REQUISITIONS Alberta School Foundation Fund Westview Lodge TOTAL NET MUNICIPAL TAXES (AFTER REQUISITIONS)

Town of Rocky Mountain House 2025 Annual Report

9,749,116

TOWN OF ROCKY MOUNTAIN HOUSE SCHEDULE OF GOVERNMENT TRANSFERS FOR THE YEAR ENDED DECEMBER 31, 2025 SCHEDULE 4 Budget (Unaudited) TRANSFERS FOR OPERATING Other Local Governments Provincial Government Federal Government TRANSFERS FOR CAPITAL Other Local Governments Provincial Government Federal Government

TOTAL GOVERNMENT TRANSFERS

2,572,511 1,250,158 22,400 3,845,069

2025 $

2,558,762 1,455,526 8,400 4,022,688

2024 $

2,486,072 1,110,612 27,402 3,624,086

1,851,188 5,790,079 3,945,642 11,586,909

724,276 5,187,380 3,809,935 9,721,591

2,698,899 5,553,122 4,544,819 12,796,840

$ 15,431,978

$ 13,744,279

$ 16,420,926

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE SCHEDULE OF CONSOLIDATED EXPENSES BY OBJECT FOR THE YEAR ENDED DECEMBER 31, 2025 SCHEDULE 5 Budget (Unaudited) CONSOLIDATED EXPENSES BY OBJECT Salaries, wages and benefits Contracted and general services Materials, goods and utilities Bank charges and short term interest Interest on long-term debt Transfers to local boards and organizations Amortization of tangible capital assets Change in asset retirement obligation

Town of Rocky Mountain House 2025 Annual Report

2025

2024

8,951,426 7,403,621 2,569,730 15,400 315,399 2,035,646 3,474,250 -

8,741,715 6,340,038 2,374,740 24,394 88,999 2,014,065 3,732,679 142,584

8,405,926 5,847,818 2,394,641 25,284 106,101 2,417,210 3,484,519 -

24,765,472

23,459,214

$ 22,681,499

(72,754)

733,387

(43,405)

Amortization expense

NET REVENUE

$ 11,972,515

Contributed assets

15,677

67,464

26,661

(1,899,388) $

(1,339,231)

741,157

402,000

(1,703,314)

1,936,564

518,610 5,500

461,410 924,383

233,250

150,109

Transportation

(3,192,331) $

(3,119,577)

Capital government transfers

10,965,930

4,179,335

29,329 876,430

2,572,016 701,560

316,603

NET REVENUE, BEFORE AMORTIZATION & OTHER CAPITAL

2,673,882

23,232 -

71,594 181,342

535,801 1,861,913

1,059,758

$ 13,639,812

109,005

1,243,734 1,769,024 $

9,030

32,040

941,723

586,949

$ 10,008,065

Protective Services

Gain (loss) on disposal of tangible capital assets

EXPENSES Contracted & general services Salaries & wages Materials, goods & utilities Transfers to local boards Interest expense & bank charges Other expenses

REVENUE Net municipal taxes Operating government transfers User fees and sales of goods Investment interest income Other revenues

General Government

TOWN OF ROCKY MOUNTAIN HOUSE

36,075

500

4,886

12,706

(6,544)

19,250

751,096

69,856 280,027

67,771 333,442

770,346

53,387

712,073

Public Health & Welfare

(765,172) $

(31,498)

(733,674)

1,214,854

37,331 95,261

397,996 683,766

481,180

445,105

Planning & Development

SCHEDULE OF SEGMENTED DISCLOSURE FOR THE YEAR ENDED DECEMBER 31, 2025 SCHEDULE 6

Town of Rocky Mountain House Annual Report

11,244

9,205,515

(1,202,780)

7,750,333

384,000

2,273,962

4,086,773

51,756 142,584

944,114 -

1,610,815 1,337,504

6,360,735

7,190 45,748

6,037,954

269,843

Environmental Use & Protection

(2,623,426) $

(1,036,467)

496,714

(2,083,673)

4,884,031

703,906 575,505

694,229 2,899,147

2,800,358

727,916

627,806

1,444,636

Recreation & Culture

12,710,419

(3,732,679)

9,721,591

316,603

786,000

5,618,904

19,726,535

113,393 142,584

2,374,740 2,014,065

6,340,038 8,741,715

25,345,439

1,250,924 3,251,793

6,811,969

4,022,688

10,008,065

TOTAL

Town of Rocky Mountain House 2025 Annual Report

NET REVENUE

$ 11,112,029

(1,987,682) $

(1,233,459)

1,030,430

(1,784,653)

2,036,105

29,020

524,903 -

522,418 959,764

251,452

107,936

19,282

124,234

Transportation Services

(3,483,305) $

(61,796)

(39,291)

Amortization expense

(3,421,509)

4,437,170

27,957 1,237,689

2,344,574 826,950

(851)

254,378

10,897,793

2,585,268

24,652

75,918 230,762

470,730 1,783,206

1,015,661

$ 13,483,061

146,062

1,459,452 1,714,252 $

9,960

36,134

$ 859,639

9,749,116

524,107

Protective Services

Capital government transfers

Gain (loss) on disposal of tangible capital assets

Contributed assets

NET REVENUE, BEFORE AMORTIZATION AND OTHER CAPITAL

EXPENSES Contracted & general services Salaries & wages Materials, goods & utilities Transfers to local boards Interest expense & bank charges

REVENUE Net municipal taxes Operating government transfers User fees and sales of goods Investment interest income Other revenues

General Government

28,923

2,486

41,209

(3,496)

60,947

(16,242)

792,573

49,578 420,276

62,307 260,412

776,331

61,772

712,073

Public Health & Welfare

(500,748) $

(30,223)

(470,525)

974,303

2,503

36,381 74,103

213,930 647,386

503,778

474,855

Planning & Development

SCHEDULE OF SEGMENTED DISCLOSURE FOR THE PREVIOUS YEAR ENDED DECEMBER 31, 2024 SCHEDULE 6

TOWN OF ROCKY MOUNTAIN HOUSE

67,957

12,626,257

(1,139,309)

11,301,789

2,463,777

3,948,860

62,349

893,817 -

1,716,068 1,276,626

6,412,637

5,651 1,040,175

5,298,854

Environmental Use & Protection

(2,193,731) $

(976,945)

149,296

374,000

(1,740,082)

4,422,701

12,861

786,087 454,380

517,791 2,651,582

2,682,619

747,779

598,764

1,336,076

Recreation & Culture

15,614,029

(3,484,519)

12,796,840

(851)

374,000

5,928,559

19,196,980

131,385

2,394,641 2,417,210

5,847,818 8,405,926

25,125,539

1,465,103 4,233,545

6,053,689

3,624,086

9,749,116

TOTAL

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025 The Town of Rocky Mountain House (the Town) is a municipality in the Province of Alberta, Canada and operates under the provisions of the Municipal Government Act, R.S.A., 2000, c. M-26, as amended (MGA). 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements (the financial statements) of the Town are the representations of management prepared in accordance with generally accepted accounting principles for local governments established by the Public Sector Accounting Board and as published by the Chartered Professional Accountants of Canada. Significant aspects of the accounting policies adopted by the Town are as follows:

(a)

Reporting Entity

The 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 municipal operations plus all the organizations that are owned or controlled by the Town and are, therefore, accountable to the Town Council for the administration of their financial affairs and resources. Included in these financial statements are fifty percent of the Rocky Mountain House Municipal Airport assets, liabilities, revenues and expenses. The schedule of taxes levied also includes operating 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.

(b)

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 provided. Revenue is recognized in the period when the related expenses are incurred, services performed or the tangible capital assets are acquired.

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (c)

Use of Estimates

The preparation of the financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Where estimation uncertainty exists, the financial statements have been prepared within reasonable limits of materiality. Actual results could differ from estimates. The amounts recorded for valuation of tangible capital assets, non-vesting employee benefit liabilities, asset retirement obligation, contingent liabilities and commitments and accruals are areas where management makes significant estimates and assumptions in determining the amounts to be recorded in the financial statements.

(d)

Valuation of Financial Assets and Liabilities

The Town's financial assets and liabilities are measured as follows:

Financial statement component Cash and cash equivalents Trade and other receivables Long-term receivable Investments Accounts payable and accrued liabilities Security deposits Demand loan Long-term debt (e)

Measurement cost and amortized cost lower of cost or net recoverable value lower of cost or net recoverable value amortized cost cost cost amortized cost amortized cost

Cash and Cash Equivalents

Cash includes items that are readily convertible to known amounts of cash, are subject to an insignificant risk of change in value, and have a maturity of three months or less at acquisition.

(f)

Investments

Investments consist of amounts held in term deposit accounts with a maturity date exceeding 90 days and less than one year from the balance sheet date.

(g)

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 un-matured long-term debt, less actuarial requirements for retirement of any sinking fund debentures.

(h)

Long-term Receivables

Long-term receivables are initially measured at cost with valuation allowances subsequently used to reflect loans receivable at the lower of cost and net recoverable value. Changes in valuation allowances are recognized as expenses in the statement of operations. Interest revenue is recognized when earned, to the extent the collectibility of the loan and interest is reasonably assured. 46

Town of Rocky Mountain House 2025 Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ( i)

Long-term Debt

Long-term debt is initially recognized net of any premiums, discounts, fees and transactions costs, with interest expense recognized using the effective interest method. Long-term debt is subsequently measured at amortized cost.

( j)

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.

(k)

Land for Resale Inventory

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.

( l)

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.

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (m)

Asset Retirement

A liability for an asset retirement obligation is recognized at the best estimate of the amount required to retire a tangible capital asset at the financial statement date when there is a legal obligation for the Town to incur retirement costs, the past transaction or event giving rise to the liability has occurred, it is expected that future economic benefits will be given up, and a reasonable estimate of the amount can be made. The best estimate of the liability includes all costs directly attributable to asset retirement activities, based on information available at year-end. The best estimate of an asset retirement obligation incorporates a present value technique, when the cash flows required to settle or otherwise extinguish an asset retirement obligation are expected to occur over extended future periods. When a liability for an asset retirement obligation is initially recognized, a corresponding asset retirement cost is capitalized to the carrying amount of the related tangible capital asset. The asset retirement cost is amortized over the useful life of the related asset. Asset retirement obligations which are incurred incrementally with use of the asset are recognized in the period incurred with a corresponding asset retirement cost expensed in the period. At each financial reporting date, the Town reviews the carrying amount of the liability. The Town recognizes period-to-period changes to the liability due to the passage of time as accretion expense. Changes to the liability arising from revisions to either the timing, the amount of the original estimate of undiscounted cash flows or the discount rate are recognized as an increase or decrease to the carrying amount of the related tangible capital asset. The Town continues to recognize the liability until it is settled or otherwise extinguished. Disbursements made to settle the liability are deducted from the reported liability when they are made.

(n)

Revenue recognition

Revenue from transactions with no performance obligation is recognized at realizable value when the Town has the authority to claim or retain an inflow of economic resources and identifies a past transaction or event giving rise to an asset. Revenue from transactions with performance obligations is recognized as the performance obligations are satisfied by providing the promised goods or services to the payer. User fees are recognized over the period of use, sales of goods are recognized when goods are delivered. Licenses and permits with a single performance obligation at a point in time are recognized as revenue on issuance, those which result in a continued performance obligation over time are recognized over the period of the license or permit as the performance obligation is satisfied. Requisitions operate as a flow through and are excluded from municipal revenue.

Town of Rocky Mountain House 2025 Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (o)

Employment Benefits Liabilities

The Town recognizes liabilities for post-employment benefits and compensated absences that vest or accumulate during the period in which the employment services are rendered, assuming payment of benefits is probable and the amounts can be reasonably estimated. Accumulating, vesting benefits liabilities are measured at cost. Accumulating, non-vesting benefits liabilities are recognized at cost to the extent they are expected to be used by employees.

(p)

Deferred Revenues

Deferred revenues represent government transfers, donations, and other amounts which have been collected, but for which the related services have yet to be performed or agreement stipulations have not been met. These amounts will be recognized as revenues when revenue recognition criteria have been met. Interest earned on deferred revenues, reserves, and offsite levies are calculated using an average investment earnings monthly.

(q)

Pension

The Town participates in a multiemployer defined benefit pension plan. Contributions for current and past service pension benefits are recorded as expenses in the year in which they become due. See Note 18 for details of the pension plan.

(r)

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.

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (s)

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 assets for the year.

( i)

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: Land Improvements Buildings Engineered structures Water System Wastewater System Other engineered structures Machinery and Equipment Vehicles

15-20 years 25-50

35-75 35-75 15-40 5-20 10-25

No amortization is charged in the year of acquisition and a full year of amortization is taken in the year of disposal. Assets under construction are not amortized until the asset is available for productive use.

(ii)

Contributions of Tangible Capital Assets

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

(iii)

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.

(iv)

Inventories

Inventories held for consumption are recorded at the lower of cost determined on a specific identification basis and net realizable value.

(v )

Cultural and Historical Tangible Capital Assets

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

Town of Rocky Mountain House 2025 Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (t)

Contaminated Sites Liability

Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard. The liability is recorded net of any expected recoveries. A liability for remediation of a contaminated site is recognized when the Town is either directly responsible or accepts responsibility and is management's estimate of the cost of post-remediation including operation, maintenance and monitoring.

(u)

Cash Flow Reporting

The Town follows the indirect method in reporting its cash flows from operating activities.

CASH AND CASH EQUIVALENTS 2025 Cash

$ 24,493,949

2024

30,361,979

Cash includes amounts held in a chequing bank account earning interest at graduated rates ranging from the bank's prime rate less 1.50% - 1.90% (2024 - 1.55% to 1.90%) per annum. The effective rate at year end is 2.55% - 2.95% (2024 - 3.75% - 5.26%) per annum. Cash also includes amounts held in a savings account earning interest at 1.65% (2024 - 3.10%) per annum.

TAXES RECEIVABLE 2025 Current taxes Arrears taxes

191,920 172,144 364,064

2024 $

86,739 286,909 373,648

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

TRADE AND OTHER RECEIVABLES

Other trade receivables School under-levy Utilities receivable Government grants for operating costs CEIP loan receivable Government grants receivable Other receivable for capital costs (Note 16) Allowance for doubtful accounts

2025

2024

602,701 $ 1,487 770,914 285,511 257,306 3,329,340 414,817 (105,442) 5,556,634 $

480,892 (1,340) 661,721 1,255,591 251,670 2,970,198 433,400 (100,187) 5,951,945

2025

2024

At December 31, 2025 included in government grants receivable:

Strategic Transportation Infrastructure Program (STIP) Grant Provincial Investing in Canada Infrastructure Program (ICIP) - Federal Clearwater County Local Government Fiscal (LGFF) Grant Canada Community Building Fund (CCBF) Grant

833,954 930,398 1,104,105 460,883 3,329,340

66,354 2,165,342 738,502 2,970,198

These allocations are receivable as the Town has submitted eligible capital projects that were sufficient for the release of the capital funding.

INVESTMENTS Investments are non-redeemable guaranteed investment certificates (GICs) on deposit with the Alberta Treasury Branch. Matures Non-Redeemable GIC Non-Redeemable GIC Accrued interest

May 27, 2025 May 28, 2026

Interest Rate 5.26% 3.60%

Town of Rocky Mountain House 2025 Annual Report

2025

2024

$ 10,000,000 214,027 10,214,027 $

5,000,000 5,000,000

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

LONG-TERM RECEIVABLE The long-term receivable consisted of amounts owed to the Town for the developer's portion of costs relating to a long-term construction project. The amount was receivable with interest. The effective interest at December 31, 2025 was 5.45% (2024 - 7.35%). The amount was due September 27, 2025 and was paid in full during the 2025 year end.

EMPLOYEE BENEFIT OBLIGATIONS 2025 Bank time Vacation and incentive time Personal time

5,628 293,688 232,580 531,896

2024 $

4,660 279,508 239,480 523,648

Vacation and incentive time The vacation and bank time 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. Personal time The personal time liability is management's estimate of the cost of sick time that has accrued to employees and will be taken in future years as paid time off. Employees can accrue and carryover up to 320 hours (2024 - 320 hours) of sick time but are not entitled to pay-in-lieu of unused sick time upon termination of their employment. Based on historical information management expects that 34% (2024 37%) of the accrued sick hours will be used. 8.

SECURITY DEPOSITS Security deposits consist of financial deposits for private development, rental deposits and deposits on utility accounts. Private development deposits are held by the Town to ensure that the development has been completed to the required specifications. Deposits are for items such as landscaping, fencing, paving and service connections. Rental deposits are held by the Town to ensure that rental spaces and properties are left clean and in good repair after the rental period. Utility account deposits are for rental properties where utility bills are in the tenant’s name. deposits are for unpaid utilities.

Utility

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025 9.

DEFERRED REVENUE Inflows and outflows of restricted resources during the year were as follows:

Balance 2024 Prepaid local improvements Deferred projects Deferred operating revenue Deferred capital grants

17,535 351,762 108,150 4,702,933 $ 5,180,380

Received $

129,021 196,748 5,434,255 5,760,024

Recognized $

(17,535) $ (102,745) (207,044) (9,147,315) (9,474,639) $

Balance 2025 378,038 97,854 989,873 1,465,765

Deferred projects are funds received in advance for specific projects and will be recognized as operating revenue or capital revenue in the year the expenditure occurs. Deferred operating revenue relates to monies received for goods or services which have not yet been delivered, and will be recognized as revenues when provision of the goods or services is completed. Deferred capital grants relate to government and other funding received for specific capital projects that are not yet completed, and will be recognized as revenues when the projects are completed in the case of government grants, or on the same basis as the capital asset is amortized in the case of other contributions. Deferred capital grants is comprised of:

Balance 2024 Local Government Fiscal Framework (LGFF) Grant Canada Community Building Fund (Formerly Federal Gas Tax Fund) Gruber Street Light Reserve Investing in Canada Infrastructure Program Investing in Canada Infrastructure Program - Federal Other deferred capital revenues

Town of Rocky Mountain House 2025 Annual Report

Balance 2025

Received

Recognized

370,673

$ 1,105,373

$ (1,464,004) $

12,042

126,417 13,188

462,614 -

(548,738) -

40,293 13,188

3,997,086

56,333

(3,174,638)

878,781

566,242 $ 4,702,933

3,809,935 $ 5,434,255

(3,809,935) (150,000) $ (9,147,315) $

416,242 989,873

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

10.

LONG-TERM DEBT 2025 Green Municipal Fund Loan Tax-supported debentures Self-supported debentures

379,377 1,491,757 5,467,225 7,338,359

2024 $

388,200 1,370,321 6,168,561 7,927,082

The current portion of the long-term debt is $570,754 (2024 - $579,902). Principal and interest repayments are due as follows: PRINCIPAL 2026 2027 2028 2029 2030 Thereafter

570,754 593,575 617,386 400,605 381,708 4,774,331 7,338,359

INTEREST $

292,593 269,772 245,960 223,832 209,027 1,878,166 3,119,350

TOTAL $

863,347 863,347 863,346 624,437 590,735 6,652,497 $ 10,457,709

Debenture debt is repayable to Alberta Capital Finance Authority and bears interest at rates ranging from 2.03% to 4.91% per annum and mature in periods 2024 through 2047. The average annual interest rate is 4.35% (2024 - 3.47%). Debenture debt is issued on the credit and security of the Town of Rocky Mountain House at large. The total cash payments for interest on debenture debts paid in 2025 were $315,321 (2024 - $342,280). Green Municipal Fund Loan payments are $8,823 (2024 - $Nil) semi-annually including interest at 0.00% per annum. The first payment was due September 22, 2025. The loan matures February 15, 2047.

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

11.

ASSET RETIREMENT OBLIGATION Landfill Pursuant to an agreement the Town has accepted partial responsibility for a post-closure liability. The Town has agreed to fund 34.5% of future closure and post-closure costs of a landfill. Closure and post-closure activities include the final clay cover, landscaping, as well as surface and ground water monitoring, leachate control, and visual inspection. A liability for the total obligation, which was incurred pursuant to the agreement, has been accrued. Undiscounted future cash flows expected are a closure cost in year 2037 of $19,247 (2024 - $19,194) with annual post-closure activities starting in the year 2037 of $290,681 (2024 - $289,886) per year, increasing at an annual inflation rate of 2.33% (2024 - 2.31%) for 25 years to year 2061. The estimated total liability is based on the sum of discounted future cash flows for closure and post-closure activities for 25 years after closure using a discount rate of 4.56% (2024 - 4.91%) and assuming annual inflation of 2.33% (2024 - 2.31%). The Town has not designated assets for settling closure and post-closure liabilities. The accrued liability portion is based on the cumulative capacity used at year end compared to the estimated total landfill capacity. The total capacity of the site is estimated at 2.305 million cubic metres. The estimated used capacity of the landfill site is 2.305 million cubic metres. There is no estimated remaining life in years. Post-closure care is estimated to be required until 2061.

Asbestos abatement The Town owns a building which contains asbestos and, therefore, the Town is legally required to perform abatement activities upon renovation or demolition of this building. Abatement activities include handling and disposing of the asbestos in a prescribed manner when it is disturbed. Undiscounted future cash flows expected are an abatement cost in year 2030 of $250,000. The estimated total liability of $250,000 is based on the sum of discounted future cash flows for abatement activities using a discount rate of 4.90% and assuming annual inflation of 2.00%. The Town has not designated assets for settling the abatement activities. Total asset retirement obligations 2025 Balance, beginning of year Change in estimated cash flows Accretion expense Estimated total liability

Town of Rocky Mountain House 2025 Annual Report

1,285,415 91,745 50,839 1,427,999

2024 $

1,469,572 (184,157) 1,285,415

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

12.

DEBT LIMITS AND DEBT SERVICING LIMIT Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by Alberta Regulation 255/00 for the Town of Rocky Mountain House be disclosed as follows: 2025 Total debt limit Total debt Amount of debt limit unused

Debt servicing limit Debt servicing Amount of debt servicing limit unused

2024

39,579,477 7,338,359 32,241,118

$ 41,736,657 7,927,082 $ 33,809,575

6,596,580 863,347 5,733,233

6,956,110 2,516,629 4,439,481

The debt limit is calculated at 1.5 times revenue of the municipality excluding transfers from the government of Alberta and Canada for the purposes of capital property (as defined in Alberta Regulation 255/2000) and the debt service limit is calculated at 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. The calculation taken alone does not represent the financial stability of the municipality. Rather, the financial statements must be interpreted as a whole. Total debt includes long-term debt less debt charges recoverable. Debt servicing includes principal and interest payment due on long-term debt in the 12 months subsequent to year-end less amounts that are recoverable.

13.

EQUITY IN TANGIBLE CAPITAL ASSETS 2025 Tangible Capital Assets (Schedule 2) Accumulated amortization (Schedule 2) Long-term debt (Note 10) Asset retirement obligation (Note 11) Add back operating long-term debt (Note 10) Long-term operating debt

2024

203,992,469 $ 190,960,029 (76,241,400) (73,714,397) (7,338,359) (7,927,082) (1,427,999) (1,285,415) 379,377 388,200 273,292 327,271 119,637,380 $ 108,748,606

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

14.

ACCUMULATED SURPLUS Accumulated operating surplus consists of internally restricted and unrestricted amounts, and equity in tangible capital assets as follows: 2025 Unrestricted surplus Internally restricted surplus Capital Reserves Utility Reserves Offsite Levy Reserves Equity in tangible capital assets (Note 13)

3,115,228 20,128,624 9,433,965 721,842 119,637,380 153,037,039

15.

2024 $

2,193,019 18,891,881 9,830,299 662,815 108,748,606 $ 140,326,620

TRUST FUNDS The Town of Rocky Mountain House administers the following trusts: 2025 Cemetery Perpetual Care Balance, beginning of year Sale of cemetery plots Repurchase of cemetery plots Interest Balance, end of year

Land held in trust for F. Crosbie

Town of Rocky Mountain House 2025 Annual Report

33,837

121,113 9,150 3,569 133,832

2024

167,669

105,813 9,700 (195) 5,795 121,113 -

121,113

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

16.

CONTRACTUAL RIGHTS, CONTRACTUAL OBLIGATIONS AND CONTINGENCIES During 2025 the Town entered into an agreement with the Rocky Mountain House and District Minor Football Association to provide additional funds to complete payment of the field lighting project. Payments are $5,204 per annum for a 5 year term with interest at 5% per annum. 2026 2027 2028 2029

5,204 5,204 5,204 5,205 20,817

In 2014 the Town entered into a financial contribution agreement with the Rocky Curling Club (the "Club") whereby the Club agreed to contribute a total of $1,500,000 toward renovations to the curling rink building. In 2018 the Town also advanced the Club $37,100 for exterior renovations. The balance receivable is measured at cost. Annual payments are due in November of each year. There are no terms regarding interest, forgiveness nor security. In 2020, the annual receipt from the curling club was deferred. In 2022 this agreement was extended to a 15 year period. The future receipts under this agreement are detailed in the table below. Pursuant to a cost sharing agreement, Clearwater County will pay 50% of any amounts defaulted by the Club. 2026 2027 2028 2029 2030 Thereafter

39,400 39,400 39,400 39,400 39,400 197,000 394,000

On January 1, 2021 a new agreement between the Town and Clearwater County was signed for the period January 1, 2021 to December 31, 2025. The County committed to make annual payments to the Town calculated as (Town Service Property Tax - County Service Property Tax) x County percentage. In 2025 the payment is $396,104 (2024 - $405,230).

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

16.

CONTRACTUAL RIGHTS, CONTRACTUAL OBLIGATIONS AND CONTINGENCIES (Continued) Contractual Obligations RCMP Contract On April 1, 2012 the Town entered into an agreement with the Government of Canada for the employment of the Royal Canadian Mounted Police to provide policing services during the term of the agreement which ends March 31, 2032. The policing services expenses for 2025 are $2,898,098. (In 2024 the Town recognized $2,656,970). The Town received Provincial grants to assist with the cost sharing in the amount of $425,179. (In 2024 the Town recognized $354,120.) In addition to the provincial funding to support policing operations of $354,120, the Town received $60,000 from the province for an Alberta Indigenous/Municipal Police Transition Study Grant and $11,059 for the Body-worn Camera Digital Evidence Management System Grant program Lawsuits From time to time, the Town is a defendant in various lawsuits. When the outcome of a claim against the Town is considered likely to result in a loss and the amount of the loss can be reasonably estimated, accrued liabilities have been recorded. When the resulting potential losses, if any, cannot be determined or the occurrence of future contingent events is unknown, accrued liabilities have not been recorded.

Town of Rocky Mountain House 2025 Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

17.

SALARY & BENEFITS DISCLOSURE Disclosure of salaries and benefits for municipal officials, the chief administrative officer and designated officers as required by Alberta Regulation 313/2000 is as follows:

COUNCILORS David Auld Debbie Baich Shane Boniface Denise Boniface Marley Capraro Tina Hutchinson Trevor Kalyn Ken Moesker Len Phillips Dale Shippelt Justin Sinclair Kevin Stalker

CAO - Dean Krause

HONORARIUM SALARY 1

2025 BENEFITS & ALLOWANCES 2

19,816 12,271 9,064 25,381 34,652 9,400 35,412 57,589 36,787 9,677 9,580 259,629

240,264

1,205

2024 TOTAL $

372 356 11,797

21,021 12,663 9,399 26,918 36,740 9,745 37,126 61,042 36,787 10,049 9,936 271,426

30,158

270,422

392 335 1,537 2,088 345 1,714 3,453 -

TOTAL $

24,449 31,487 36,507 43,366 27,852 51,447 28,377 243,485

272,055

1. Salary includes regular base pay, bonuses, overtime, lump sum payments, gross honoraria, compensated absences and any other direct cash remuneration. 2. Benefits for Council include a communication benefit for cell phones, Internet and CPP deductions. Benefits for the CAO includes employer's share of all employee benefits and contributions or payments made on behalf of employees including pension, health care, dental coverage, vision coverage, group life insurance, accidental disability and dismemberment insurance, short-term disability plans, professional memberships and tuition.

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

18.

LOCAL AUTHORITIES PENSION PLAN Employees of the Town of Rocky Mountain House participate in the Local Authorities Pension Plan (LAPP), which is covered by the Alberta Public Sector Plans Act. The Plan serves about 316,938 people and about 453 employers. It is financed by the employer and employee contributions and investment earnings of the LAPP Fund. Contributions for current service are recorded as expenditures in the year in which they become due. The Town is required to make current and past service contributions to the LAPP of 8.45% (2024 8.45%) of pensionable earnings up to the year's maximum pensionable earnings under the Canada Pension Plan and 11.65% (2024 - 11.65%) on pensionable earnings above this amount. Employees of the Town are required to make current service contributions of 7.45% (2024 - 7.45%) of pensionable salary up to the year's maximum pensionable salary and 10.65% (2024 - 10.65%) on pensionable salary above this amount. Total current and past service contributions by the Town to the Local Authorities Pension Plan in 2025 were $498,590 (2024 - $492,544). Total current and past service contributions by the employees of the Town to the Local Authorities Pension Plan in 2025 were $448,670 (2024 - $438,476). The LAPP discloses an actuarial surplus at year end. The 2025 numbers were not available at the time of preparing these financial statements. (2024 - $19.56 billion surplus). For further information of the www.lapp.ca/page/annual-reports.

19.

amount

LAPP

deficiency/surplus

information

see:

CONTAMINATED SITES LIABILITY The Town did not identify any financial liabilities (2024 - nil) as a result of contaminated sites.

20.

SEGMENTED DISCLOSURE The Town of Rocky Mountain House provides a range of services to its ratepayers. For each reported segment, revenues and expenses represent both 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 the Schedule of Segmented Disclosure (schedule 6). General government includes council and other legislative, and general administration. Protective services includes bylaw enforcement, police and fire. Transportation includes roads, streets, walks and lighting. Planning and development includes land use planning, zoning and subdivision land and development. Public health and welfare includes family and community support. Recreation and culture includes parks and recreation, libraries, museums and halls. Environmental use and protection includes water supply and distribution, wastewater treatment and disposal, and waste management.

Town of Rocky Mountain House 2025 Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

21.

BUDGET RECONCILIATION The budget information presented in these consolidated financial statements is based on the operating and capital budgets approved by the Town of Rocky Mountain House Council on December 16, 2025. The reconciliation below reconciles the approved financial plan to the figures reported in these consolidated financial statements. Excess of revenues over expenses

11,486,990

3,474,250 (11,586,909) (979,901) 765,609 180,000 (3,340,039) -

Amortization Government transfers for capital (Schedule 4) Repayment of long-term debt Transfer from reserves - Operating projects Landfill closure & post-closure adjustments Transfers to reserves

22.

COMPARATIVE FIGURES Certain comparative figures have been restated to conform with the current year's presentation.

23.

BUDGET AMOUNTS The budget amounts included in these financial statements have not been audited; accordingly no assurance is expressed thereon.

Town of Rocky Mountain House Annual Report

TOWN OF ROCKY MOUNTAIN HOUSE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025

24.

FINANCIAL INSTRUMENTS The Town of Rocky Mountain House's financial instruments include cash and cash equivalents, investments, taxes receivable, trade and other receivables, accounts payable and accrued liabilities , accounts payable - tangible capital assets, and long-term debt. It is management's opinion that the Town is not exposed to significant interest or currency risks arising from these financial instruments. Taxes receivable and requisition over/under-levy are compulsory in nature, rather than contractual, however, the Town manages risk exposure on these items similar to other receivables and payables. Credit risk 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 Town is exposed to some credit risk with respect to taxes and grants in place of taxes receivables and trade and other receivables. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Town manages liquidity risk by continuously monitoring cash flows. It is management's opinion that the Town is not subject to liquidity risk. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Town does not transact in foreign currencies. Interest rate risk Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Town is exposed to interest rate risk to the extent that the carrying value of some cash and long-term debts are at fixed rates of interest whereas some cash and cash equivalents, revolving operating loan and bank demand loan have floating interest rates, which if the rate changes, would affect future cash flows. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Town does not have significant exposure to other price risk.

25.

APPROVAL OF FINANCIAL STATEMENTS These financial statements are approved by Council and management April 27, 2026.

Town of Rocky Mountain House 2025 Annual Report

SECTION 3:

STATISTICAL INFORMATION (Unaudited)

Town of Rocky Mountain House Annual Report

TAXABLE ASSESSMENTS

2025

2024

2023

2022

2021

$758,322,700

$729,613,410

$690,339,590

$672,493,920

$631,024,410

Vacant Residential

9,076,500

9,594,250

9,723,520

10,620,080

9,588,370

Affordable Housing

2,935,000

Non-Residential Commercial Improved

193,105,850

193,793,510

188,622,500

175,877,500

157,791,160

Non-Residential Commercial Vacant

8,107,000

8,601,000

9,472,590

8,067,820

5,839,260

Non-Residential Large business

60,519,190

60,801,990

60,728,470

58,825,810

46,841,170

Non-Residential Large Business - Industrial & Linear

13,537,060

12,887,600

12,414,470

11,360,340

11,118,470

865,940

235,390

234,530

227,030

191,500

10,655,000

10,671,000

10,692,820

9,938,280

10,170,770

Residential and Farmland

Machinery & Equipment - Large Business Provincial Grant in Lieu

$1,057,124,240 $1,026,198,150

$982,228,490 $947,410,780 $872,565,110

PROPERTY TAXES LEVIED

2025

2024

2023

2022

2021

Residential

$8,700,729

$8,370,990

$8,031,763

$7,955,541

$8,151,748

Non Residential

4,355,328

4,123,665

3,918,047

3,734,700

3,507,242

Linear Property

197,273

182,829

166,859

157,442

170,269

Machinery and Equipment

12,551

3,324

3,152

3,146

2,824

Farm Land

5,343

5,182

4,930

5,153

831

Taxes In Lieu

116,068

92,716

102,333

71,879

81,219

$13,387,292

$12,778,706

$12,227,084

$11,927,861

$11,914,133

REQUISITIONS

2025

2024

2023

2022

2021

Alberta School Foundation Fund

$3,214,298

$2,873,875

$2,785,390

$2,655,212

$2,699,508

164,929

155,715

123,677

145,359

86,511

$3,379,227

$3,029,590

$2,909,067

$2,800,571

$2,786,019

$10,008,065

$9,749,116

$9,318,017

$9,127,290

$9,128,114

Westview Lodge Net Taxes Available for Municipal Purposes

Town of Rocky Mountain House 2025 Annual Report

TAX LEVIED PER CAPITA Population

2025

2024

2023

2022

2021

6,765

13,387,292

12,778,706

12,227,084

11,927,861

11,914,133

Taxes Levied Per Capita

$1,979

$1,889

$1,807

$1,763

$1,761

Muncipal Taxes Per Capita

$1,479

$1,441

$1,377

$1,349

$500

$448

$430

$414

$412

Taxes Levied

Requisitions Per Capita

PROPERTY TAX COLLECTION

2025

2024

2023

2022

Taxation Levied

13,387,292

12,778,706

12,227,084

11,927,861

$11,914,133

Taxes Receivable - Current

191,920

86,739

261,687

125,190

296,616

Taxes Receivable - Arrears

172,144

286,909

109,699

167,790

42,461

Total Taxes Receivable Dec. 31

364,064

373,648

371,386

292,980

339,077

$13,023,228

12,405,058

11,855,698

$11,634,881

$11,575,056

Percentage of Taxes Collected by Dec. 31

97.28%

97.08%

96.96%

97.54%

97.15%

Percentage of Current Taxes Outstanding by Dec. 31

1.47%

0.70%

2.21%

1.08%

2.56%

Total Property Taxes Collected - Year Levied

OTHER TAX LEVIES AND COLLECTIONS Local Improvements

MUNICIPAL MILL RATES Residential and Farmland

2025

2024

$30,843

2025

2023

$13,308

2024

2021

2022

$22,075

2023

2021

$22,075

2022

$22,075

2021

8.48

8.6517

8.7407

8.8749

9.7618

Vacant Residential

11.236

10.9267

10.6407

10.9149

11.8018

Affordable Housing

4.24

Non-Residential Commercial Improved

11.236

10.9267

10.6407

10.8519

11.7388

Non-Residential Commercial Vacant

14.494

14.1217

13.4407

13.8589

14.7458

Non-Residential Large Business

14.494

14.1217

13.4407

13.8589

14.7458

Non-Residential Large Business - Industrial & Linear

14.494

14.1217

13.4407

13.8589

14.7458

Machinery & Equipment - Large Business

14.494

14.1217

13.4407

13.8589

14.7458

Provincial Grant in Lieu

14.494

14.1217

13.4407

10.9149

11.8018

2025 TOP 5 PRINCIPAL CORPORATE TAXPAYERS Roll Number

Assessed Value

31600000

10,404,000

3347000

9,170,000

27230000

8,508,000

30210000

7,566,000

7240000

7,539,000

Town of Rocky Mountain House Annual Report

REVENUES BY SOURCE

2024

2023

2022

2021

$10,008,065

$9,749,116

$9,318,017

$9,127,290

$9,128,114

30,843

13,308

22,075

User Fees and Sale of Goods

6,811,969

6,053,689

5,515,522

5,238,456

5,218,853

Government Transfers - Capital & Operating

13,744,279

16,420,926

10,433,044

5,460,833

7,110,042

3,433,379

1,250,924

1,465,103

1,667,099

551,761

153,835

Penalties and Costs of Taxes

211,695

267,379

232,805

252,848

173,468

Franchise and Concessions

1,690,337

1,617,735

1,512,561

1,413,459

1,218,602

Licenses and Permits

238,271

269,938

298,986

260,498

171,434

Advertising and Sponsorship

197,149

75,200

61,209

102,636

94,373

Rentals

876,398

801,685

745,337

719,810

618,091

7,100

1,188,300

12,717

304,474

30,736

Contributed Assets

786,000

374,000

1,875,246

Gain on Disposal of Tangible Capital Assets

316,603

151,088

58,307

$36,169,633

$38,296,379

$29,970,460

$25,387,693

$27,373,002

EXPENSES BY FUNCTION

2025

2024

2023

2022

2021

Legislative

$391,901

$355,161

$348,401

$313,048

$293,830

Administration

2,325,389

2,269,398

2,101,142

1,808,634

2,061,718

Protective Services

4,252,090

4,498,966

3,491,106

4,082,037

4,044,773

Operations & Infrastructure

3,408,640

3,415,232

3,817,259

3,360,212

3,583,775

Utilities

5,156,707

4,942,500

5,332,671

4,802,199

4,579,663

838,158

860,443

846,004

973,031

926,489

Planning & Development

1,165,495

940,152

917,143

1,043,028

828,195

Recreation & Culture

5,920,834

5,399,647

5,013,544

4,876,163

4,184,885

851

265,076

$23,459,214

$22,682,350

$21,867,270

$21,258,352

$20,768,404

EXPENSES BY OBJECT

2025

2024

2023

2022

2021

Salaries, Wages and Benefits

$8,741,715

$8,405,926

$7,982,142

$7,370,961

$7,092,947

24,394

25,284

20,006

30,729

12,530

Contracted and General Services

6,340,038

5,801,818

5,641,042

5,779,419

5,754,483

Materials, Goods and Utilities

2,374,740

2,440,641

2,468,358

2,272,128

1,914,356

Interest on Long Term Debt

88,999

106,101

143,495

167,291

193,909

Transfers to Local Boards and Organizations

2,014,065

2,417,210

1,448,745

1,967,447

2,109,561

Amortization of Tangible Capital Assets

3,732,679

3,484,519

3,791,398

3,497,051

3,299,771

Acretion of Asset Retirement Obligations

142,584

372,084

173,326

390,847

$23,459,214

$22,681,499

$21,867,270

$21,258,352

$20,768,404

Net Taxes Available for Municipal Purposes Local Improvements

2025

Gain on Dissolution of Regional Waste Authority Investment Income

Other Revenues

Social Services

Loss on Disposal of Tangible Capital Assets

Bank Charges and Short Term Interest

Town of Rocky Mountain House 2025 Annual Report

ANNUAL SURPLUS

2025

2024

2023

2022

2021

Excess (Shortfall) of Revenues Over Expenditures

$1,886,225

$2,444,040

$956,058

$219,298

$103,950

Contributed Assets

786,000

374,000

1,875,246

Gain (Loss) on disposal of tangible capital assets

316,603

(851)

151,088

58,307

(265,076)

3,433,379

9,721,591

12,796,840

6,996,044

1,976,490

3,332,346

$12,710,419

$15,614,029

$8,103,190

$4,129,341

$6,604,599

2025

2024

2023

2022

2021

Accumulated Surplus, Beginning of Year

$140,326,620

$124,712,590

$116,609,400

$112,480,059

$105,875,460

Annual Surplus (Deficit)

12,710,419

15,614,029

8,103,190

4,129,341

6,604,599

Accumulated Surplus, End of Year

$153,037,039 $140,326,619 $124,712,590 $116,609,400 $112,480,059

Gain on dissolution of Rocky Mountain Regional Waste Authority Government Transfers for Capital

ACCUMULATED SURPLUS

NET FINANCIAL ASSETS

2025

2024

2023

2022

2021

Financial Assets

$41,720,740

$46,897,828

$44,750,525

$37,715,488

Financial Liabilities

16,860,570

26,314,124

25,235,313

20,580,558

Net Financial Assets

$24,860,170

$20,583,704

$19,515,212

$17,134,930

2021

LONG TERM DEBT

2025

2024

2023

2022

Green Municipal Fund Loan

$379,377

$388,200

$194,100

Tax Supported Debentures

$1,491,757

$1,370,321

$2,143,829

$2,197,868

$2,998,271

Self Supported Utility Debentures

5,467,225

6,556,761

6,201,896

7,134,151

2,390,724

Total Long Term Debt

$7,338,359

$8,315,282

$8,733,925

$9,526,119

$5,388,995

Total Debt Limit

39,579,477

41,736,657

35,931,171

32,508,858

30,910,917

Total Debt

7,338,359

7,927,082

8,733,925

9,526,119

5,388,995

Amount of Debt Limited Unused

32,241,118

33,809,575

27,197,246

22,982,739

$25,521,922

Percentage of Debt Limits Used

18.54%

18.99%

24.31%

29.30%

17.43%

6,596,580

6,956,110

5,988,529

5,418,143

5,151,820

863,347

2,516,629

3,195,774

2,374,645

2,624,744

Amount of Debt Servicing Limit Unused

$5,733,233

$4,439,481

$2,792,755

$3,043,498

$2,527,076

Percentage of Debt Service Limit Used

13.09%

36.18%

53.36%

43.83%

50.95%

Population

6,765

Debt Per Capita

1,085

1,229

1,291

1,408

797

Total Private Dwellings

3,202

3,139

3,131

3,075

Debt Per Dwelling

2,292

2,649

2,790

3,098

1,753

Debt Servicing Limit Debt Servicing

Town of Rocky Mountain House Annual Report

TANGIBLE CAPITAL ASSETS

2025

2024

2023

2022

2021

Land

$5,750,873

$5,786,759

Land Improvements

11,728,838

10,891,247

10,056,963

9,568,774

9,484,102

Buildings

30,170,762

29,928,837

28,137,167

27,863,122

28,207,169

Engineering Structures

144,899,435

132,343,145

119,847,862

110,541,406

105,352,519

Machinery and Equipment

8,785,576

9,005,389

8,823,077

8,497,118

8,405,388

Vehicles

2,656,985

3,040,538

2,960,089

3,072,964

$203,992,469 $190,960,029 $175,576,031 $165,294,257 $160,308,901 Accumulated Amortization Net Book Value

Town of Rocky Mountain House 2025 Annual Report

76,241,400

73,714,397

71,623,186

68,415,092

65,098,573

$127,751,069 $117,245,632 $103,952,845

$96,879,165

$95,210,328

EQUITY IN TANGIBLE CAPITAL ASSETS

2025

2024

2023

2022

2021

Capital Assets

$203,992,469

$190,960,029

$175,576,031

$165,294,257

$160,308,901

Accumulated Amortization

(76,241,400)

(73,714,397)

(71,623,186)

(68,415,092)

(65,098,573)

Long-term Debt

(7,338,359)

(8,315,282)

(8,733,925)

(9,526,119)

(5,388,995)

Asset Retirement Obligation

(1,427,999)

(1,285,415)

(1,469,572)

652,669

715,471

767,212

622,704

476,151

$119,637,380 $108,360,406

$94,516,560

$87,975,750

$90,297,484

Long-term Operating Debt Total Equity In Tangible Capital Assets

GOVERNMENT TRANSFERS

2025

2024

2023

2022

2021

Other Local Governments

$2,558,762

$2,486,072

$2,318,295

$2,139,769

$1,987,401

Provincial Government

1,455,526

1,110,612

1,113,643

1,315,174

1,774,545

8,400

27,402

5,062

29,400

15,750

$4,022,688

$3,624,086

$3,437,000

$3,484,343

$3,777,696

Other Local Governments

$724,276

$2,698,899

$979,698

$136,615

$49,598

Provincial Government

5,187,380

5,553,122

4,358,331

1,261,976

3,098,502

Federal Government

3,809,935

4,544,818

1,658,015

577,899

184,246

Total Transfers for Capital

$9,721,591

$12,796,839

$6,996,044

$1,976,490

$3,332,346

Total Government Transfers

$13,744,279

$16,420,925

$10,433,044

$5,460,833

$7,110,042

RESERVES

2025

2024

2023

2022

2021

Unrestricted Surplus

$3,115,228

$2,193,018

$1,759,765

$8,235,292

$2,386,497

Restricted Surplus

$30,284,431

$29,384,998

$28,436,265

$20,398,358

$19,796,078

Equity in Tangible Capital Assets

$119,637,380

$108,748,606

$94,516,560

$87,975,750

$90,297,482

Total Accumulated Surplus

$153,037,039 $140,326,622 $124,712,590 $116,609,400 $112,480,057

Transfers for Operating:

Federal Government Total Transfers for Operating Transfers for Capital:

Restricted Surplus: Infrastructure, Lifecycle

$13,752,772

$12,624,960

$11,931,617

$11,268,707

$10,729,495

500,000

1,106,418

1,130,758

1,060,255

1,002,692

976,426

2,974

11,179

47,940

34,749

Water, Sewer and Solid Waste

8,327,546

8,699,541

8,462,068

6,741,550

6,480,535

Land Development

3,000,000

721,842

662,813

621,487

522,643

483,219

Carryforward Projects

2,872,877

2,763,952

2,849,659

814,826

1,091,654

Total Restricted Surplus

$30,284,429

$29,384,998

$28,436,265

$20,398,358

$19,796,078

Council Priority Environmental Sustainability Airport - Equipment

Off-Site Levies

Town of Rocky Mountain House Annual Report

DEVELOPMENT PERMITS ISSUED

2025

2024

2023

2022

2021

Development Permits Issued

117

106

102

Building Permits Issued

116

BUILDING PERMIT VALUES

2025

2024

2023

2022

2021

Residential

$6,532,058

$5,171,562

$2,449,280

$4,880,124

$2,199,932

Commercial / Industrial

3,367,898

8,611,544

4,533,590

4,687,147

860,500

Government / Institutional

1,886,000

146,250

5,048,279

12,430,000

1,796,000

$11,785,956

$13,929,356

$12,031,149

$21,997,271

$4,856,432

2023

2022

BUSINESS LICENSES ISSUED

2025

Business Licenses Issued

DEMOGRAPHICS Source: Statistics Canada Census Data

2024 517

2021

Population

588

2016

575

2011

554

2006

6,765

6,635

6,933

6,874

0 to 14

20.5%

19.5%

20.0%

20.5%

15 to 64

62.5%

64.5%

66.4%

62.6%

65+

16.9%

15.6%

13.4%

16.9%

3,075

2,954

2,800

2,719

Population by Age:

Number of Dwellings

WORKFORCE METRICS Source: Statistics Canada Census Data

2021

2016

2011

2006

Employment Rate

56%

62%

71.9%

68.5%

Unemployment Rate

14.9%

12.7%

6.8%

Town of Rocky Mountain House 2025 Annual Report

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Town of Rocky Mountain House 5116 - 50 Avenue PO Box 1509 Rocky Mountain House, AB T4T 1B2 403-845-2866 | www.rockymtnhouse.com