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Home My WebLink About2014 Financial Statements Kneehill County Consolidated Financial Statements For the year ended December 31, 2014 Kneehill County Consolidated Financial Statements For the year ended December 31, 2014 Contents Auditors' Report 1 Consolidated Financial Statements Consolidated Statement of Financial Position 2 Consolidated Statement of Operations 3 Consolidated Statement of Change in Net Financial Assets 4 Consolidated Statement of Cash Flows 5 Summary of Significant Accounting Policies 6 - 8 Notes to the Consolidated Financial Statements 9 - 30 Tel: 403 342 2500 Fax: 403 346 3070 www.bdo.ca BDO Canada LLP Millennium Centre 600, 4909 49 Street Red Deer AB T4N 1V1 Canada Kneehill County Consolidated Statement of Financial Position December 31 2014 2013 Financial assets Cash and cash equivalents (Note 1)$ 41,954,913 $ 30,871,840 Taxes receivable (Note 2)440,961 118,168 Accounts receivable (Note 3)811,740 873,832 Land held for resale 75,906 75,907 Investments (Note 4)122 122 43,283,642 31,939,869 Liabilities Accounts payable and accrued liabilities 2,097,902 1,715,363 Employee benefit obligation (Note 5) 692,939 632,105 Deposit liabilities 50,000 55,000 Deferred revenue (Note 6) 431,160 56,194 Long-term debt (Note 7)5,069,522 7,517,865 Solid waste closure and post-closure liabilities (Note 8)255,262 188,425 8,596,785 10,164,952 Net financial assets 34,686,857 21,774,917 Non-financial assets Tangible capital assets (Note 9)105,211,199 105,686,275 Inventory for consumption (Note 10)4,844,446 5,110,872 Prepaid expenses 198,206 158,985 110,253,851 110,956,132 Accumulated surplus (Note 12)$ 144,940,708 $ 132,731,049 Debenture debt limits (Note 19) Contingencies (Note 20) The accompanying summary of significant accounting policies and notes are an integral part of these financial statements 2 Kneehill County Consolidated Statement of Operations Budget For the year ended December 31 2014 2014 2013 Revenue Net municipal taxes (Note 14) $ 26,280,529 $ 26,208,435 $ 20,844,104 Government transfers for operating (Note 15) 1,521,677 1,332,803 3,092,071 Sales and user fees 873,960 1,144,814 833,518 Rental revenue 46,400 74,229 69,815 Investment income 229,000 381,306 324,013 Penalties and costs on taxes 65,000 77,429 65,406 Fines and costs 77,550 55,426 152,209 Other 18,838 184,886 126,814 Development levies 345,700 362,670 489,607 Drilling licenses 80,000 91,679 117,843 Sales to other governments 13,424 -73,169 29,552,078 29,913,677 26,188,569 Expenses (Note 16) Legislative 532,986 521,072 411,084 Administration and Assessment 2,720,795 2,721,679 2,321,593 Protective services 1,423,638 1,102,612 1,120,122 Transportation 11,175,847 10,614,519 10,365,167 Water and wastewater 2,311,896 2,299,317 2,380,486 Waste management 419,699 489,313 521,289 Public health and welfare 1,002,963 981,659 955,619 Planning and development 522,486 314,507 397,876 Agriculture services 943,446 844,356 681,617 Parks, recreation and culture 1,012,728 719,298 607,803 Loss on disposal of tangible capital assets -109,651 194,778 Other --194,734 22,066,484 20,717,983 20,152,168 Excess (deficiency) of revenue over expenditures - before other 7,485,594 9,195,694 6,036,401 Other Government transfers for capital (Note 15) 2,740,000 2,988,474 2,393,524 Contributed assets -25,491 38,836 Other --(1,936) Excess (deficiency) of revenue over expenditures 10,225,594 12,209,659 8,466,825 Accumulated surplus, beginning of year 132,731,049 132,731,049 124,264,224 Accumulated surplus, end of year $ 142,956,643 $ 144,940,708 $ 132,731,049 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements 3 Kneehill County Consolidated Statement of Change in Net Financial Assets Budget For the year ended December 31 2014 2014 2013 Excess (deficiency) of revenue over expenditures $ 10,225,594 $ 12,209,659 $ 8,466,825 Acquisition of tangible capital assets (9,176,495)(4,642,964)(6,774,084) Amortization of tangible capital assets 4,645,522 4,645,522 4,796,522 Net loss on sale of tangible capital assets -109,651 194,778 Proceeds on sale of tangible capital assets 330,300 388,358 878,884 Contributed assets -(25,491)(38,836) 6,024,921 12,684,735 7,524,089 Change in prepaid -(39,221)19,664 Purchase inventory of supplies (5,516,783)(2,804,117)(2,907,588) Use inventory of supplies 3,258,643 3,070,543 2,965,399 Net change in net financial assets 3,766,781 12,911,940 7,601,564 Net financial assets, beginning of year 21,774,917 21,774,917 14,173,353 Net financial assets, end of year $ 25,541,698 $ 34,686,857 $ 21,774,917 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements 4 Kneehill County Consolidated Statement of Cash Flows For the year ended December 31 2014 2013 Operating transactions Excess (deficiency) of revenue over expenditures $ 12,209,659 $ 8,466,825 Items not involving cash Contributed assets (25,491)(38,836) Amortization 4,645,522 4,796,522 Net loss on disposal of tangible capital assets 109,651 194,778 Changes in non-cash operating balances Taxes receivable (322,793)202,498 Accounts receivable 62,092 650,614 Prepaid expenses (39,221)19,664 Accounts payable and accrued liabilities 382,539 166,621 Inventory for consumption 266,426 57,813 Employee benefit obligation 60,834 (12,911) Deposit liabilities (5,000)- Deferred revenue 374,966 (571,999) Solid waste closure and post closure liabilities 66,837 91,910 17,786,021 14,023,499 Capital transactions Acquisition of tangible capital assets (4,642,964)(6,774,084) Proceeds on sale of tangible capital assets 388,358 878,884 (4,254,606)(5,895,200) Financing transactions Repayment of long-term debt (2,448,342)(2,366,893) Net change in cash and cash equivalents 11,083,073 5,761,406 Cash and cash equivalents, beginning of year 30,871,840 25,110,434 Cash and cash equivalents, end of year $ 41,954,913 $ 30,871,840 Cash and cash equivalents is comprised of: Cash and cash equivalents $ 41,954,913 $ 30,871,840 Less: restricted (Note 1)(431,160)(56,194) $ 41,523,753 $ 30,815,646 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements 5 Kneehill County Summary of Significant Accounting Policies December 31, 2014 Management's Responsibility for the Financial Statements The consolidated financial statements of the County are the responsibility of management. They have been prepared in accordance with Canadian generally accepted accounting principles established by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. Basis of Consolidation The financial statement reflect the assets, liabilities, revenue and expenses of all municipal organizations, committees and Boards which are owned or controlled by the County and are, therefore, accountable to the County Council for the administration of their financial affairs and resources. Included with the municipality are the following: The schedule of taxes levied also includes operational requisitions for educational, health, social and other external organizations that are not part of the municipal reporting entity. The statement excludes trust assets that are administered for the benefit of external parties. Interdepartmental and organizational transactions and balances are eliminated. Cash and Cash Equivalents Management considers all highly liquid investments with maturity of three months or less at acquisition to be cash equivalents. Investments Investments are recorded at cost unless there has been a decline in the market value which is other than temporary in nature in which case the investments are written down to market value. Land Held for Resale Land held for resale is recorded at 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 their respective function. Inventory of Supplies Inventories of materials and supplies for consumption are valued at the lower of cost or replacement cost. Inventory of gravel is maintained by perpetual records and is recorded in the accounts to the extent of royalties, land costs, crushing costs incurred, hauling and equipment rentals. Excess Collections and Under-levies Excess collections arise from the difference between the actual levy made to cover each requisition and the actual amount requisitioned. If the actual levy exceeds the requisition, the excess collection is accrued as a liability and as a reduction in property tax revenue. Requisition tax rates in the subsequent year are adjusted for any excess collections. 6 Kneehill County Summary of Significant Accounting Policies December 31, 2014 Tangible Capital Assets Tangible capital assets are recorded at cost less accumulated amortization. Cost includes all costs directly attributable to acquisition or construction of the tangible capital asset including transportation costs, installation costs, design and engineering fees, legal fees and site preparation costs. Contributed tangible capital assets are recorded at fair value at the time of the donation, with a corresponding amount recorded as revenue. Amortization is recorded on a straight-line basis over the estimated life of the tangible capital asset commencing once the asset is available for productive use as follows: Land improvements 10 to 20 years Buildings 25 to 50 years Engineered Structures Water system 15 to 75 years Wastewater system 25 to 60 years Other engineered structures 6 to 100 years Machinery, equipment and furnishings 5 to 45 years Vehicles 5 to 20 years Assets under construction are not amortized until the asset is available for productive use. Tangible capital assets received as contributions are recorded at fair value at the date of receipt and are also recorded as revenue. Leased Assets Leases entered into that transfer substantially all the benefits and risks associated with ownership are recorded as the acquisition of a tangible capital asset and the incurrence of an obligation. The asset is amortized in a manner consistent with tangible capital assets owned by the County, and the obligation, including interest thereon, is liquidated over the term of the lease. All other leases are accounted for as operating leases, and the rental costs are expensed as incurred. Pension Expenditure The County's participates in a multi-employer defined benefit pension plan. The plan is accounted for as a defined contribution plan. Deferred Revenue Funds received for specific purposes which are externally restricted by legislation, regulation or agreement and are not available for general municipal purposes are accounted for as deferred revenue on the consolidated statement of financial position. The revenue is recognized in the consolidated statement of operations in the year in which it is used for the specified purpose. Government Transfers Government transfers, which include legislative grants, are recognized in the financial statements in the period in which events giving rise to the transfers occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amount can be made. 7 Kneehill County Summary of Significant Accounting Policies December 31, 2014 Revenue Recognition Taxes are recognized as revenue in the year they are levied. Charges for sewer and water usage are recorded as user fees. Connection fee revenues are recognized when the connection has been established. Conditional grant revenue is recognized to the extent the conditions imposed on it have been fulfilled. Unconditional grant revenue is recognized when monies are receivable. Grants for the acquisition of tangible capital assets are recognized in the period in which eligible expenditures are made. Sales of service and other revenue is recognized on an accrual basis. Landfill Closure and Post Closure Liability Pursuant to Alberta Environmental Protection and Enhancement Act, the County is required to fund the closure of its landfill site and provide for post-closure care of the facility. Closure and post-closure activities include, but are not limited to, final clay cover, landscaping, as well as surface and ground water monitoring, leachate control and visual inspection. The requirement is being provided for over the estimate of the remaining life of the landfill site based on usage. Use of Estimates The preparation of consolidated financial statements in accordance with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management's best estimates as additional information becomes available in the future. 8 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 1. Cash and Cash Equivalents 2014 2013 Current account $ 36,768,929 $ 25,770,819 Guaranteed investment certificate, bearing interest at rate of 1.60% and maturing on August, 13, 2015 5,185,984 5,101,021 $ 41,954,913 $ 30,871,840 The County has an undrawn line of credit of $2,500,000 that is available should the need arise. The line of credit bears interest at prime minus 0.75%. Included in the above amounts are the following amounts received from the Government of Canada and the Province of Alberta as conditional grants held exclusively for future projects. 2014 2013 Municipal Sustainability Initiative $ 104,177 $- Federal Gas Tax Fund 267,434 - FCSS 1,059 1,217 PLC 18,940 29,522 KCRP 23,000 23,000 CBI 2,445 2,445 FSEPP Program Grant 5,000 - Canadian Badlands 9,105 10 $ 431,160 $ 56,194 9 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 2. Taxes Receivable 2014 2013 Current taxes and grants in place $ 325,312 $ 13,138 Non-current taxes and grants in place 191,763 181,272 Less: Allowance for doubtful accounts (76,114)(76,242) $ 440,961 $ 118,168 3. Accounts Receivable 2014 2013 Trade receivables $ 606,727 $ 676,979 GST Receivable 205,013 196,853 $ 811,740 $ 873,832 4. Investments 2014 2013 Alberta Capital Finance Shares, at cost $ 121 $ 121 Servus Credit Union Membership Shares, at cost 1 1 $ 122 $ 122 5. Employee Benefit Obligation 2014 2013 Accrued vacation pay $ 240,142 $ 220,820 Accrued sick leave benefit 452,797 411,285 $ 692,939 $ 632,105 The vacation and sick benefits liability is comprised of vacation and sick days credits 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 budget year. 10 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 6. Deferred Revenue Opening balance Contributions received Revenue recognized Ending balance MSI - 104,177 - 104,177 Gas Tax Fund - 267,434 - 267,434 FCSS 1,217 155 (313) 1,059 PLC 29,522 19,772 (30,354) 18,940 KCRP 23,000 - - 23,000 CBI 2,445 3,227 (3,227) 2,445 FSEPP Program - 5,000 - 5,000 Canadian Badlands 10 167,500 (158,405) 9,105 $ 56,194 567,265 (192,299)$ 431,160 Grants Under various grant agreements with the Government of Canada and the Province of Alberta, the County is required to account for grants provided and to complete the projects or program in accordance with standards detailed in the various agreements. If these requirements are not adhered to, grants provided will become repayable to the source government. Unexpended funds are repayable to the source government upon final accounting. Funds are deferred until related expenditures under the specific grant agreement have been incurred. 11 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 7. Long-Term Debt Net long-term debt reported on the statement of financial position is comprised of the following: 2014 2013 Tax supported debentures 5,069,522 7,517,865 Principal and interest payments relating to net long term debt of $5,069,522 outstanding are due as follows: Principal Interest Repayments Payments Total 2015 $ 1,857,328 $ 188,769 $ 2,046,097 2016 1,243,230 127,400 1,370,630 2017 1,298,355 72,275 1,370,630 2018 670,609 14,706 685,315 $ 5,069,522 $ 403,150 $ 5,472,672 Debenture debt is repayable to Alberta Capital Finance Authority: Debenture one, issued June 16, 2008, in the amount of $11 million, repayable semi annually at a fixed rate 4.3859% maturing June 16, 2018. Debenture two, issued June 15, 2010, in the amount of $6.3 million, repayable semi annually at a fixed rate of 2.575%, maturing June 15, 2015. Debenture debt is issued on the credit and security of Kneehill County at large 12 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 8. Landfill Closure and Post-Closure Liabilities Solid waste closure and post-closure care requirements have been defined in accordance with industry standards and include final covering and landscaping of the landfill, removal of ground water and leachates, and ongoing environmental monitoring, site inspection and maintenance. The estimated total liability is based on the sum of the discounted future cash flows for close and postclosure activities for 25 years after closure using a discount rate of 4.4% and assuming annual inflation of 3%. The accrued liability portion is based on the cumulative capacity used at year end compared to the estimated total landfill capacity. The total capacity of the site is estimated at 47,520 cubic metres. The existing landfill site is expected to reach capacity in (approximately) 2020. The County has not designated assets for settling closure and post closure liabilities. 2014 ($) 2013 ($) Estimated closure costs 272,000 272,000 Estimated post-closure costs 323,000 323,000 Estimated total liability 595,000 595,000 Liability Accrued (255,262)(188,425) Balance of estimated cost to accrued 339,738 406,575 13 Kneehill County No t e s t o C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s De c e m b e r 3 1 , 2 0 1 4 9. T a n g i b l e C a p i t a l A s s e t s 2014 La n d La n d Im p r o v e m e n t s Bu i l d i n g s En g i n e e r e d St r u c t u r e s Ma c h i n e r y a n d Eq u i p m e n t Ve h i c l e s Work in Progress Total Co s t , b e g i n n i n g o f y e a r $ 1 , 3 8 0 , 4 3 2 $ 1 , 4 1 6 , 2 4 7 $ 8 , 2 5 1 , 6 8 6 $ 1 5 0 , 7 4 5 , 4 2 0 $ 7 , 1 8 2 , 3 9 6 $ 8 , 0 5 4 , 2 5 1 $ 7 7 5 , 5 7 5 $ 1 7 7 , 8 0 6 , 0 0 7 Ad d i t i o n s 71 6 , 3 8 5 - 50 2 , 1 7 7 1, 1 2 7 , 6 5 0 1, 0 9 3 , 2 6 5 41 5 , 7 9 6 813,182 4,668,455 Ch a n g e i n w o r k i n pr o g r e s s - - 3 2 , 2 2 9 6 6 5 , 7 6 2 7 7 , 5 8 4 - ( 7 7 5 , 5 7 5 ) - Wr i t e - d o w n s & d i s p o s a l s - - - (6 0 , 5 7 1 ) (5 0 2 , 6 2 7 ) (4 1 7 , 9 1 0 ) -(981,108) Co s t , e n d o f y e a r $ 2 , 0 9 6 , 8 1 7 $ 1 , 4 1 6 , 2 4 7 $ 8 , 7 8 6 , 0 9 2 $ 1 5 2 , 4 7 8 , 2 6 1 $ 7 , 8 5 0 , 6 1 8 $ 8 , 0 5 2 , 1 3 7 $ 8 1 3 , 1 8 2 $ 1 8 1 , 4 9 3 , 3 5 4 Ac c u m u l a t e d am o r t i z a t i o n , b e g i n n i n g of y e a r $ - $ 77 7 , 6 3 4 $ 2, 1 5 9 , 3 2 3 $ 63 , 9 0 3 , 5 5 5 $ 1, 9 6 6 , 9 0 6 $ 3, 3 1 2 , 3 1 4 $ -$72,119,732 Am o r t i z a t i o n - 4 6 , 1 0 1 1 9 8 , 8 6 8 3 , 3 3 0 , 3 6 6 4 5 3 , 3 4 7 6 1 6 , 8 4 0 - 4 , 6 4 5 , 5 2 2 Wr i t e - d o w n s & d i s p o s a l s - - - (4 8 , 7 9 9 ) (1 4 9 , 6 8 1 ) (2 8 4 , 6 1 9 ) -(483,099) Ac c u m u l a t e d am o r t i z a t i o n , e n d o f ye a r $- $ 8 2 3 , 7 3 5 $ 2 , 3 5 8 , 1 9 1 $ 6 7 , 1 8 5 , 1 2 2 $ 2 , 2 7 0 , 5 7 2 $ 3 , 6 4 4 , 5 3 5 $-$ 7 6 , 2 8 2 , 1 5 5 Ne t c a r r y i n g a m o u n t , en d o f y e a r $ 2, 0 9 6 , 8 1 7 $ 59 2 , 5 1 2 $ 6, 4 2 7 , 9 0 1 $ 85 , 2 9 3 , 1 3 9 $ 5, 5 8 0 , 0 4 6 $ 4, 4 0 7 , 6 0 2 $ 813,182 $105,211,199 14 Kneehill County No t e s t o C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s De c e m b e r 3 1 , 2 0 1 4 9. T a n g i b l e C a p i t a l A s s e t s (c o n t i n u e d ) 2013 La n d La n d Im p r o v e m e n t s Bu i l d i n g s En g i n e e r e d St r u c t u r e s Ma c h i n e r y a n d Eq u i p m e n t Ve h i c l e s Work in Progress Total Co s t , b e g i n n i n g o f y e a r $ 1 , 3 8 0 , 4 3 2 $ 1 , 3 4 8 , 7 1 5 $ 7 , 9 3 7 , 0 7 6 $ 1 4 6 , 5 3 8 , 8 7 0 $ 7 , 5 2 4 , 2 9 3 $ 8 , 3 5 0 , 8 6 8 $ 4 1 5 , 6 1 2 $ 1 7 3 , 4 9 5 , 8 6 6 Ad d i t i o n s 67 , 5 3 2 31 4 , 6 1 0 4, 4 3 0 , 7 7 7 1, 0 4 1 , 2 7 0 59 8 , 7 6 8 359,963 6,812,920 Wr i t e - d o w n s & d i s p o s a l s - - - ( 2 2 4 , 2 2 7 ) ( 1 , 3 8 3 , 1 6 7 ) ( 8 9 5 , 3 8 5 ) - ( 2 , 5 0 2 , 7 7 9 ) Co s t , e n d o f y e a r $ 1, 3 8 0 , 4 3 2 $ 1, 4 1 6 , 2 4 7 $ 8, 2 5 1 , 6 8 6 $ 15 0 , 7 4 5 , 4 2 0 $ 7, 1 8 2 , 3 9 6 $ 8, 0 5 4 , 2 5 1 $ 775,575 $177,806,007 Ac c u m u l a t e d am o r t i z a t i o n , b e g i n n i n g o f ye a r $- $ 7 3 0 , 3 2 7 $ 1 , 9 7 1 , 8 2 5 $ 6 0 , 5 8 4 , 1 6 1 $ 2 , 1 1 8 , 0 5 8 $ 3 , 3 4 7 , 9 5 5 $-$ 6 8 , 7 5 2 , 3 2 6 Am o r t i z a t i o n 47 , 3 0 7 18 7 , 4 9 8 3, 5 4 1 , 6 9 6 41 6 , 4 1 1 60 3 , 6 1 0 -4,796,522 Di s p o s a l s - - ( 2 2 2 , 3 0 2 ) ( 5 6 7 , 5 6 3 ) ( 6 3 9 , 2 5 1 ) - ( 1 , 4 2 9 , 1 1 6 ) Ac c u m u l a t e d am o r t i z a t i o n , e n d o f y e a r $ - $ 77 7 , 6 3 4 $ 2, 1 5 9 , 3 2 3 $ 63 , 9 0 3 , 5 5 5 $ 1, 9 6 6 , 9 0 6 $ 3, 3 1 2 , 3 1 4 $ -$72,119,732 Ne t c a r r y i n g a m o u n t , e n d of y e a r $ 1 , 3 8 0 , 4 3 2 $ 6 3 8 , 6 1 3 $ 6 , 0 9 2 , 3 6 3 $ 8 6 , 8 4 1 , 8 6 5 $ 5 , 2 1 5 , 4 9 0 $ 4 , 7 4 1 , 9 3 7 $ 7 7 5 , 5 7 5 $ 1 0 5 , 6 8 6 , 2 7 5 15 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 10. Inventory For Consumption 2014 2013 Gravel $ 4,351,670 $ 4,744,461 Other transportation amounts 393,560 273,111 Other 99,216 93,300 $ 4,844,446 $ 5,110,872 11. Equity in Tangible Capital Assets 2014 2013 Tangible capital assets $ 181,493,354 $ 177,806,007 Accumulated amortization (76,282,155)(72,119,732) Debenture debt (5,069,522)(7,517,865) $ 100,141,677 $ 98,168,410 16 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 12. Accumulated Surplus 2014 2013 Equity in tangible capital assets (Note 11)$ 100,141,677 $ 98,168,410 Equity in other non-financial assets 5,042,652 5,269,857 Unrestricted surplus (deficit)1,208,613 1,244,294 106,392,942 104,682,561 Reserves Operating Reserves: Contingency 2,081,284 999,444 Information Technology 171,882 204,583 Joint Community Support 55,015 57,755 Doctor Recruitment 240,874 258,701 Fuel Stabilization 312,766 312,766 Gravel 3,007,935 2,732,935 Family & Community Support Services 52,373 62,242 Kneehill Community Resource Program 77,447 66,580 Parent Link Program 127 127 Cemeteries 96,874 76,874 Planning 110,504 72,982 Parks 299,085 274,086 Strategic Plan Reserves 450,000 250,000 Special Projects 445,604 415,287 7,401,770 5,784,362 Capital Reserves: Capital Equipment Replacement 2,823,355 1,906,424 Buildings 5,362,825 4,667,113 Bridges 5,625,132 3,912,902 Roads 8,345,853 5,789,080 Water 229,118 229,118 Water Service Area 1,854,060 370,353 Environmental 408,839 408,839 Recreation and Leisure Funding 38,728 59,603 Medical 5,189,694 4,920,694 Urban Sustainability 1,268,392 - 31,145,996 22,264,126 Total Reserves 38,547,766 28,048,488 $ 144,940,708 $ 132,731,049 The equity in tangible capital assets represents amounts already spent and invested in infrastructure. Reserves represents funds set aside by bylaw or council resolution for specific purposes. 17 Kneehill County No t e s t o C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s De c e m b e r 3 1 , 2 0 1 4 13 . C h a n g e i n A c c u m u l a t e d S u r p l u s Un r e s t r i c t e d s u r p l u s R e s e r v e s Eq u i t y i n t a n g i b l e ca p i t a l a s s e t s Eq u i t y i n o t h e r no n - f i n a n c i a l a s s e t s 2014 2013 Ba l a n c e , b e g i n n i n g o f y e a r $ 1 , 2 4 4 , 2 9 4 $ 2 8 , 0 4 8 , 4 8 8 $ 9 8 , 1 6 8 , 4 1 0 $ 5 , 2 6 9 , 8 5 7 $ 1 3 2 , 7 3 1 , 0 4 9 $ 1 2 4 , 2 6 4 , 2 2 4 Ex c e s s o f r e v e n u e o v e r ex p e n s e s 12 , 4 3 6 , 8 6 4 - - ( 2 2 7 , 2 0 5 ) 12 , 2 0 9 , 6 5 9 8,466,825 Ne t o p e r a t i n g t r a n s f e r s t o re s t r i c t e d s u r p l u s (1 0 , 4 9 9 , 2 7 8 ) 1 0 , 4 9 9 , 2 7 8 - - - - De b e n t u r e p r i n c i p a l pa y m e n t s (2 , 4 4 8 , 3 4 3 ) - 2 , 4 4 8 , 3 4 3 - - - Ca p i t a l t r a n s f e r s f r o m re s t r i c t e d s u r p l u s -- - - - - Ac q u i s i t i o n o f c a p i t a l (4 , 6 6 8 , 4 5 5 ) - 4 , 6 6 8 , 4 5 5 - - - Di s p o s a l s a n d w r i t e - d o w n o f as s e t s 49 8 , 0 0 9 - ( 4 9 8 , 0 0 9 ) - - - Am o r t i z a t i o n 4, 6 4 5 , 5 2 2 - ( 4 , 6 4 5 , 5 2 2 ) - - - Ch a n g e i n a c c u m u l a t e d su r p l u s $ ( 3 5 , 6 8 1 ) $ 1 0 , 4 9 9 , 2 7 8 $ 1 , 9 7 3 , 2 6 7 $ ( 2 2 7 , 2 0 5 ) $ 1 2 , 2 0 9 , 6 5 9 $ 8 , 4 6 6 , 8 2 5 Ba l a n c e , e n d o f y e a r $ 1 , 2 0 8 , 6 1 3 $ 3 8 , 5 4 7 , 7 6 6 $ 1 0 0 , 1 4 1 , 6 7 7 $ 5 , 0 4 2 , 6 5 2 $ 1 4 4 , 9 4 0 , 7 0 8 $ 1 3 2 , 7 3 1 , 0 4 9 18 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 14. Taxation - Net Budget 2014 2014 2013 Taxation Farmland $ 1,424,920 $ 1,418,836 $ 1,429,768 Residential 2,759,168 2,738,471 2,695,876 Commercial 2,225,182 2,187,120 1,955,722 Linear property 19,855,605 19,861,779 15,781,930 Machinery and equipment 5,194,331 5,143,579 4,137,484 Railway 15,000 -16,167 Minimum tax -9,932 - Grants in lieu 3,000 -3,074 Local improvement tax (rural) 79,736 83,841 82,132 Local improvement tax (non residential) 1,281,252 1,277,610 1,288,199 Recreation levy -44,931 - 32,838,194 32,766,099 27,390,352 Requisitions Alberta School Foundation Fund 6,528,871 6,528,870 6,525,785 Kneehill Foundation 28,794 28,794 20,463 6,557,665 6,557,664 6,546,248 Available for general municipal purposes $ 26,280,529 $26,208,435 $ 20,844,104 15. Government Transfers Budget 2014 2014 2013 Operating Provincial government 1,217,303 1,052,077 2,823,740 Other local government 304,374 280,726 268,331 $ 1,521,677 $ 1,332,803 $ 3,092,071 Capital Provincial government $ 2,740,000 $ 2,988,474 $ 2,393,524 Total government transfers $ 4,261,677 $ 4,321,277 $ 5,485,595 19 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 16. Expenses by Object Budget 2014 2014 2013 Salaries and wages $ 6,820,874 $ 6,435,652 $ 6,432,919 Contracted and general services 5,919,262 5,149,129 4,009,057 Purchases from other governments --264,400 Materials, goods and utilities 3,291,349 3,056,773 2,973,836 Transfer to local agencies 869,761 841,479 354,379 Transfer to individuals and organizations 245,312 207,637 486,990 Bank charges and short term interest --1,263 Interest on long-term debt 274,402 272,138 351,265 Amortization 4,645,524 4,645,524 4,796,522 Loss on sale of assets -109,651 194,778 Other expenditures --286,759 $ 22,066,484 $ 20,717,983 $ 20,152,168 20 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 17. Municipal Employees Pension Plans Local Authorities Pension Plan Certain employees of the County are eligible to be members of the Local Authorities Pension Plan (LAPP), a multi-employer pension plan which is covered by the Public Sector Pension Plans Act. The Plan serves about 200,000 people and over 400 employers. It is financed by employer and employee contributions and investment earnings of the LAPP Fund. The plan provides defined pension benefits to employees based on their length of service and rates of pay. The County contributes to the Plan at a rate of 11.39% of pensionable earnings up to the Canada Pension Plan Maximum Pensionable Earnings and 15.84% for the excess. Employees contribute to the Plan at a rate of 10.39% of pensionable earnings up to the Canada Pension Plan Maximum Pensionable Earnings and 14.84% for the excess. Contributions for the year were: 2014 2013 Employer contributions $ 444,906 $ 385,264 Employee contributions 409,733 351,829 $ 854,639 $ 737,093 As this is a multi-employer pension plan, these contributions are the County's pension benefit expense. No pension liability for this type of plan is included in the County's financial statements. The most recent valuation as at December 31, 2013 indicates a deficit of $4.86 billion (2012 - $4.98 billion) for basic pension benefits. The actuary does not attribute portions of the unfunded liability to individual employers. 21 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 18. Salary and Benefits Disclosure Disclosure of salaries and benefits for municipal officials and designated officers as required by Alberta Regulation 313/2000 is as follows: Salary Benefits & Allowances Total 2014 Total 2013 Division 1 (1 person)33,909 6,243 40,152 38,405 Division 2 (1 person)31,433 6,243 37,676 31,746 Division 3 (1 person)37,035 6,273 43,308 32,442 Division 4 (1 person)32,085 6,123 38,208 32,449 Division 5 (1 person)58,401 6,333 64,734 59,448 Division 6 (1 person)30,782 6,722 37,504 33,662 Division 7 (1 person)30,782 6,063 36,845 34,842 Chief Administration Officer 174,075 35,258 209,333 165,904 Designated Officers (3)287,246 53,242 340,488 275,167 Salary includes regular base pay, bonuses, overtime, lump sum payments, gross honoraria and any other direct cash remuneration. Benefits and allowances includes the employer's share of all employee benefits and contributions or payments made on behalf of employees including pension, health care, dental coverage, group life insurance, accidental disability and dismemberment, dental coverage, vision coverage, professional memberships, tuition, travel, cell phone, car allowances, and long and short term disability plans. 22 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 19. Debt Limits Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by Alberta Regulation 255/100 for the County be disclosed as follows: 2014 2013 Total debt limit $44,870,519 $ 37,601,627 Total debt 5,069,522 7,517,865 Total debt limit available 39,800,997 30,083,762 Debt servicing limit 7,478,420 6,266,938 Debt servicing 2,046,097 2,721,566 Total debt servicing limit available 5,432,323 3,545,372 The debt limit is calculated at 1.5 times revenue of the County (as defined in Alberta Regulation 255/00) 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 which 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. 20. Contingencies The County is a member of the Alberta Local Municipal Insurance Exchange (Munix). Under the terms of membership, the County could become liable for its proportionate share of any claim losses in excess of the funds held by the exchange. Any liability incurred would be accounted for as a current transaction in the year the losses are determined. Kneehill County has been named in a law suit relating to a private company contractor and subcontractor for which the private company is seeking damages for. No provision has been made on the statement of financial position. It is the opinion of management that the County has minimal exposure to these actions or the potential liability will be fully recovered by insurance in place for such events. 23 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 21. Commitments Kneehill County has contracts for 2014 to provide peace officer and by-law enforcement services at a cost recovery for the following Municipalities: Town of Three Hills, Town of Trochu, Village of Linden, Village of Acme, Village of Carbon. Kneehill County is managing partner of the Aqua 7 Regional Water Services Commission. The current contract is for 3 years from April 1, 2013 to March 31, 2016. The County will receive $21,855 in fees to provide support services to the Commission in the first year. Kneehill County is a partnering member of the Drumheller and District Solid Waste Management Association. In 2014 Kneehill County paid requisition of $183,529, and is expected to pay $180,306 in 2015. Kneehill County entered into a 5 year contract for assessment services in 2013. The total financial commitment from 2014 to 2018 will be approximately $989,944. Kneehill County is part of a Master Fire Protection Agreement with the following Municipalities to provide fire protection services to rural residents in the County from 2015 to 2017 inclusive. The County's 2015 commitment is indexed by the cost of living index as established by the Province of Alberta for October of the previous Calendar year: 2015 ($) 2014 ($) Town of Three Hills 52,000 48,660 Town of Trochu 32,700 31,114 Village of Acme 41,950 39,941 Village of Carbon 41,950 39,941 Village of Linden 45,400 43,210 24 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 22. Budget The budget adopted by Council on April 22, 2014, was not prepared on a basis consistent with that used to report actual results (Public Sector Accounting Standards). The budget was prepared on a modified accrual basis while Public Sector Accounting Standards now require a full accrual basis. The budget figures anticipated use of surpluses accumulated in previous years to fund current year operation and capital activities. In addition, the budget expensed all tangible capital asset expenditures rather than including amortization expense. As a result, the budget figures presented in the statements of operations and change in net financial assets represent the budget adopted by Council on April 22, 2014, with adjustments as follows: Budget Amortization Allocation Budget per Financial Statements Actual per Financial Statements Revenues $29,552,078 - 29,552,078 $29,913,677 Government transfers for capital 2,740,000 - 2,740,000 3,013,965 Total revenues 32,292,078 -32,292,078 32,927,642 Legislative 532,986 - 532,986 521,072 Administration 2,655,668 65,127 2,720,795 2,721,679 Protective services 1,190,188 233,450 1,423,638 1,102,612 Transportation 7,838,288 3,337,559 11,175,847 10,614,519 Water and Wastewater 1,412,463 899,433 2,311,896 2,299,317 Waste management 419,699 - 419,699 489,313 Planning and development 522,486 - 522,486 314,507 Parks, recreation and culture 963,495 49,233 1,012,728 719,298 Public health and welfare 995,094 7,869 1,002,963 981,659 Agriculture services 890,593 52,853 943,446 844,356 Loss on disposal of assets - - - 109,651 Total Expenditures 17,420,960 4,645,524 22,066,484 20,717,983 Excess of revenues over expenditures 14,871,118 (4,645,524)10,225,594 12,209,659 Reconciling: Payment of debentures (2,448,343)(2,448,343)(2,448,342) Proceeds on disposal of capital 330,300 330,300 388,358 Capital expenditures (9,176,495) (9,176,495) (4,642,964) Contributed assets (25,491) Purchase of gravel (3,645,500) - (3,645,500) (1,181,802) Inter-fund transfers 68,920 - 68,920 (10,499,275) -(4,645,524)(4,645,524)(6,199,857) Add back non cash items: Change in closure/ post-closure - - - 66,837 Use of gravel - - - 1,574,594 Net change in non-gravel inventory - - - (126,366) Net change in prepaids (39,221) Amortization 4,645,524 4,645,524 4,645,522 Gain/ loss on disposal of capital 109,651 Net Revenue over Expenses $---$31,160 25 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 23. Segmented Information Situated in the heart of central Alberta, Kneehill County is a progressive rural municipality comprised of approximately 815,000 acres of land and 2,000 kilometres of developed roads. Agriculture remains the backbone of the local economy, complemented by a strong oil and gas industry. Kneehill County is first and foremost a rural community that values safety and good government for their citizens. Responsible development is encouraged that supports our resource-based economy, while at the same time investing in and enhancing infrastructure and services to citizens. Our municipality continues to promote environmental responsibility, prosperity, and positive relationships with citizens, private sector and government partners. A wide range of services are provided by departments and for management purposes, their operations and activities are organized and reported by fund. Certain departments that have been separately disclosed in the segmented information, along with the services they provide, are as follows: Agriculture Services The Agriculture Services Department focuses on the need to maintain agricultural production and profitability with an emphasis on helping farmers help themselves. It involves the participation of ratepayers and the cooperation of the Alberta Agriculture Food and Rural Development. The key priorities and goals of the department are to advise landowners concerning proper land utilization with a view of improving their economic well being. Priorities include advising landowners of effective methods to control weeds, diseases, insects and predators along with the prevention of soil and water degradation. Administration The Administration Department focuses on the delivery of quality services to customers at a reasonable cost. Along with meeting all of the financial reporting requirements, this department is also instrumental in ensuring legislative requirements are met associated with assessment and taxation. Additional support services initiated by this department include GPS, Records management, Information Technology and Human Resources. The goal of the Administration team is the delivery of customer service in a friendly, courteous and helpful manner guided by integrity and fairness. 26 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 23. Segmented Information (continued) Protective Services Kneehill County’s Protective Services section includes that of both Fire Services and Enforcement (Peace Officer) Services. Fire Services provides emergency fire protection and preventative services that mitigate loss of life and property with professionally trained volunteers and modern response equipment. Kneehill County support operating contracts with each of the six urban fire departments in addition to major contributions emergency response vehicles. Emergency preparedness planning is also led by Kneehill County through the implementation of a regional with all urban centres within our boundaries. Kneehill County identified a need for protection of municipal infrastructure and the need to enhance public safety. Our Peace Officers enhance some services provided by the local RCMP in addition to the protection of municipal infrastructure and enforcement of municipal bylaws. Enforcement assistance is also provided to other County departments such as Planning and Operations. Planning and Development The Planning and Development department promotes the incorporation of progressive planning and development practices into the organizations daily operations, along with orderly development and land use practices benefiting residents and minimizing conflicting uses. These practices centre around environmental stewardship, the notion of shared responsibilities in a global community, quality, livable communities and public participation. Recent initiatives of the department include the development of Inter- municipal Development Plans with neighbouring municipalities, an Environmentally Significant Areas Assessment and an Integrated Community Sustainability Plan. Long-term planning is supported by the Municipal Development Plan and Land Use Bylaw which reflect the vision and expectations of County residents. Transportation The Transportation department oversees many responsibilities including that of construction, maintenance and dust control of roads. Kneehill County has over 200 bridge crossing sites that are also maintained by this department. The oil and gas sector along with the development of large feedlots and new grain elevators have had significant impacts on the growth of the County and the resulting effects on our transportation corridors. In addition to the rural transportation routes, the Transportation department also provides services in five major hamlets located within our boundaries. 27 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 23. Segmented Information (continued) Water, Wastewater and Waste Managements Major infrastructure projects have taken place under the direction of Council in the area of potable water distribution. As a member of the Aqua 7 Regional Water Services Commission, the County has diligently worked to bring water to areas of the County where safe potable water is not available through the traditional well systems. Major completion of these distribution lines were completed in 2012. Other water distribution systems located throughout the County are also part of this operation. The wastewater needs of our local hamlets are also met by this department. As a member of the Drumheller and District Solid Water management Association, various transfer sites provide for the collection and disbursement of solid waste. Expansion to handle various recyclables at these stations along with initiatives in the areas of agricultural plastic recycling have also been facilitated through this relationship. Parks, Recreation and Culture Under the direction of the Transportation department, the County is responsible for the maintenance and operation of various municipal parks and campgrounds. Enhancements over the past several years have increased the level of services available at various locations. A Recreation Master Plan completed several years ago was the basis for the development of both major annual operating and capital contributions towards the various recreational facilities (arenas, swimming pools) located within our urban centres in Kneehill County. Public Health and Welfare Kneehill Regional FCSS is partnership between the Province and the six municipalities located within the boundaries of Kneehill County. An elected official’s board sets the direction for the program and makes the funding decisions for preventative based programs. Other programs that are administered under the FCSS Director include the Kneehill Community Resource Program, Parent Link Program and Community Building Initiatives. Services provided care for and strengthen the quality of life for all citizens, through volunteering, consulting and providing services to meet needs where they exist. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. In measuring and reporting segment revenue from transactions with other segments, inter-segment transfers have been eliminated. The revenues and expenses that are directly attributable to a particular segment are allocated to that segment. Taxation revenue has been allocated to general government except where specific tax revenues can be directly allocated to a service area. 28 Kneehill County No t e s t o C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s De c e m b e r 3 1 , 2 0 1 4 23 . S e g m e n t e d I n f o r m a t i o n ( c o n t i n u e d ) Fo r t h e y e a r e n d e d De c e m b e r 3 1 Pr o t e c t i v e Se r v i c e s Ag r i c u l t u r a l Se r v i c e s Tr a n s p o r t a t i o n Se r v i c e s En v i r o n m e n t a l Se r v i c e s Pl a n n i n g a n d De v e l o p m e n t Pa r k s a n d Re c r e a t i o n Pu b l i c H e a l t h an d W e l f a r e General Government2014 Total Re v e n u e Ta x a t i o n $ 1, 4 5 5 , 7 4 6 $ 1, 2 7 3 , 5 4 3 $ 11 , 9 9 3 , 7 0 7 $ 3, 0 9 9 , 2 4 2 $ 51 2 , 8 4 8 $ 1, 0 3 4 , 8 6 6 $ 1, 5 8 7 , 9 0 3 5,250,580 $26,208,435 Go v e r n m e n t t r a n s f e r s f o r op e r a t i n g ( 1 2 , 1 4 8 ) 2 1 8 , 3 5 9 1 7 , 0 4 0 - 1 5 8 , 3 9 6 - 9 3 7 , 5 7 2 1 3 , 5 8 4 1 , 3 3 2 , 8 0 3 Go v e r n m e n t t r a n s f e r s f o r ca p i t a l - - 68 7 , 6 0 1 2, 3 0 0 , 8 7 3 - - --2,988,474 Sa l e s a n d u s e r f e e s 6 5 , 0 0 4 1 8 , 5 0 7 2 1 9 , 9 8 3 9 7 4 , 3 7 7 1 3 2 , 0 5 3 5 7 , 3 5 8 6 , 3 5 0 3 3 , 8 5 1 1 , 5 0 7 , 4 8 3 In v e s t m e n t i n c o m e - - - - - - -381,306 381,306 Fi n e s a n d c o s t s 5 0 , 6 5 3 - - 4 , 7 7 4 - - - 1 6 9 , 1 0 9 2 2 4 , 5 3 6 Re n t a l r e v e n u e 2, 4 0 0 - 53 , 8 2 9 - - - 18 , 0 0 0 -74,229 Ot h e r 11 8 , 8 1 8 - - 3 8 , 2 1 6 - - 7 , 8 7 4 4 5 , 4 6 8 2 1 0 , 3 7 6 1, 6 8 0 , 4 7 3 1, 5 1 0 , 4 0 9 12 , 9 7 2 , 1 6 0 6, 4 1 7 , 4 8 2 80 3 , 2 9 7 1, 0 9 2 , 2 2 4 2, 5 5 7 , 6 9 9 5,893,898 32,927,642 Ex p e n s e s Sa l a r i e s a n d w a g e s 40 5 , 2 3 4 26 7 , 3 3 6 2, 8 0 0 , 4 6 5 53 1 , 3 4 7 21 9 , 7 0 0 38 , 4 1 4 53 6 , 5 2 7 1,636,629 6,435,652 Co n t r a c t e d a n d g e n e r a l se r v i c e s 1 7 0 , 7 3 4 3 7 2 , 1 1 8 2 , 7 3 2 , 0 6 2 3 6 3 , 1 1 9 9 3 , 9 6 5 6 7 , 3 4 7 1 6 1 , 5 2 6 1 , 1 8 8 , 2 5 8 5 , 1 4 9 , 1 2 9 Ma t e r i a l s , g o o d s a n d u t i l i t i e s 90 , 3 2 8 15 2 , 0 4 9 1, 7 3 6 , 5 0 2 65 6 , 9 3 0 84 2 76 , 7 2 5 37 , 7 3 0 305,667 3,056,773 Tr a n s f e r t o l o c a l a g e n c i e s 2 0 2 , 8 6 6 - - 2 , 5 3 4 - 3 5 2 , 5 1 8 2 3 8 , 0 0 7 4 5 , 5 5 4 8 4 1 , 4 7 9 Tr a n s f e r s t o i n d i v i d u a l s a n d or g a n i z a t i o n s - - 7, 0 0 0 65 , 5 7 6 - 13 5 , 0 6 1 --207,637 In t e r e s t o n l o n g - t e r m d e b t - - 9 3 1 2 6 9 , 6 9 1 - - - 1 , 5 1 6 2 7 2 , 1 3 8 Am o r t i z a t i o n 23 3 , 4 5 0 52 , 8 5 3 3, 3 3 7 , 5 5 9 89 9 , 4 3 3 - 49 , 2 3 3 7, 8 6 9 65,127 4,645,524 Lo s s o n s a l e o f c a p i t a l a s s e t s 2 3 , 5 8 2 ( 1 0 , 4 9 6 ) 7 8 , 2 4 3 1 1 , 4 2 9 - 6 , 8 9 3 - - 1 0 9 , 6 5 1 1, 1 2 6 , 1 9 4 83 3 , 8 6 0 10 , 6 9 2 , 7 6 2 2, 8 0 0 , 0 5 9 31 4 , 5 0 7 72 6 , 1 9 1 98 1 , 6 5 9 3,242,751 20,717,983 Ne t s u r p l u s ( d e f i c i t ) $ 5 5 4 , 2 7 9 $ 6 7 6 , 5 4 9 $ 2 , 2 7 9 , 3 9 8 $ 3 , 6 1 7 , 4 2 3 $ 4 8 8 , 7 9 0 $ 3 6 6 , 0 3 3 $ 1 , 5 7 6 , 0 4 0 $ 2 , 6 5 1 , 1 4 7 $ 1 2 , 2 0 9 , 6 5 9 29 Kneehill County No t e s t o C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s De c e m b e r 3 1 , 2 0 1 4 23 . S e g m e n t e d I n f o r m a t i o n ( c o n t i n u e d ) Fo r t h e y e a r e n d e d D e c e m b e r 3 1 Pr o t e c t i v e Se r v i c e s Ag r i c u l t u r a l Se r v i c e s Tr a n s p o r t a t i o n Se r v i c e s Wa t e r a n d Wa s t e w a t e r Pl a n n i n g a n d De v e l o p m e n t Pa r k s a n d Re c r e a t i o n Pu b l i c H e a l t h an d W e l f a r e General Government2013 Total Re v e n u e Ta x a t i o n $ 1, 2 1 6 , 8 7 4 $ 87 9 , 4 2 7 $ 9, 3 9 9 , 0 1 3 $ 2, 7 7 3 , 0 3 2 $ 54 7 , 0 2 5 $ 76 6 , 9 6 0 $ 1, 3 0 3 , 0 2 6 $3,958,747 $20,844,104 Go v e r n m e n t t r a n s f e r s f o r op e r a t i n g - 2 1 8 , 3 5 9 1 , 6 9 7 , 3 1 3 - 1 0 1 , 5 6 6 4 0 0 8 6 2 , 8 9 1 2 1 1 , 5 4 2 3 , 0 9 2 , 0 7 1 Go v e r n m e n t t r a n s f e r s f o r ca p i t a l - - 1, 1 0 9 , 4 2 0 1, 2 8 4 , 1 0 4 - - --2,393,524 Sa l e s a n d u s e r f e e s 7 7 , 2 7 0 1 3 , 6 2 7 1 6 4 , 1 4 2 1 , 0 0 5 , 4 9 6 6 4 , 7 2 1 5 4 , 5 9 9 8 , 0 0 0 8 , 4 4 0 1 , 3 9 6 , 2 9 5 In v e s t m e n t i n c o m e - - - - - - -324,013 324,013 Fi n e s a n d c o s t s 9 6 , 4 6 0 2 3 0 - 2 , 5 4 5 5 2 , 9 7 3 - - 1 8 3 , 2 5 0 3 3 5 , 4 5 8 Re n t a l s 2, 4 0 0 9, 3 0 0 58 , 1 1 5 - - - --69,815 Ot h e r 60 , 2 4 6 - 3 , 3 1 9 1 6 , 4 0 6 - - 3 9 , 4 5 1 4 4 , 2 9 1 1 6 3 , 7 1 3 1, 4 5 3 , 2 5 0 1, 1 2 0 , 9 4 3 12 , 4 3 1 , 3 2 2 5, 0 8 1 , 5 8 3 76 6 , 2 8 5 82 1 , 9 5 9 2, 2 1 3 , 3 6 8 4,730,283 28,618,993 Ex p e n s e s Sa l a r i e s a n d w a g e s 42 2 , 5 1 0 26 2 , 0 9 3 2, 8 9 2 , 9 8 8 49 5 , 3 0 2 35 9 , 3 2 2 9, 1 8 5 52 2 , 3 0 0 1,469,219 6,432,919 Co n t r a c t e d a n d g e n e r a l se r v i c e s 13 1 , 2 8 1 3 5 , 8 4 9 2 , 3 8 2 , 9 4 7 2 9 3 , 6 3 6 3 8 , 3 4 5 4 6 , 1 0 6 1 6 2 , 1 2 3 9 1 8 , 7 7 0 4 , 0 0 9 , 0 5 7 Pu r c h a s e s f r o m o t h e r go v e r n m e n t s 20 3 , 6 9 9 - - - - - -60,701 264,400 Ma t e r i a l s , g o o d s a n d u t i l i t i e s 1 2 7 , 5 9 8 3 4 1 , 7 0 5 1 , 5 5 2 , 7 2 2 7 1 9 , 2 6 4 9 5 1 7 , 5 0 0 2 6 , 5 2 7 1 8 8 , 4 2 5 2 , 9 7 3 , 8 3 6 Tr a n s f e r t o l o c a l a g e n c i e s - - - - - 31 1 , 1 9 0 -43,189 354,379 Tr a n s f e r s t o i n d i v i d u a l s a n d or g a n i z a t i o n s - - 7 , 0 0 0 6 5 , 5 7 6 - 1 7 3 , 8 6 4 2 3 6 , 8 0 0 3 , 7 5 0 4 8 6 , 9 9 0 Ba n k c h a r g e s a n d s h o r t - t e r m in t e r e s t - - 67 4 - - - -589 1,263 In t e r e s t o n l o n g - t e r m d e b t - - - 3 5 1 , 2 6 5 -- - - 351,265 Am o r t i z a t i o n 23 5 , 0 3 4 41 , 9 7 0 3, 5 2 8 , 8 3 5 88 4 , 8 2 2 - 49 , 9 5 8 7, 8 6 9 48,034 4,796,522 Lo s s o n s a l e o f c a p i t a l a s s e t s 2 2 , 9 3 6 ( 1 , 3 0 8 ) 1 7 6 , 7 8 6 ( 9 , 8 8 6 ) - 6 , 2 5 0 - - 1 9 4 , 7 7 8 Ot h e r - - - 91 , 9 1 0 11 5 - -194,734 286,759 1, 1 4 3 , 0 5 8 68 0 , 3 0 9 10 , 5 4 1 , 9 5 2 2, 8 9 1 , 8 8 9 39 7 , 8 7 7 61 4 , 0 5 3 95 5 , 6 1 9 2,927,411 20,152,168 Ne t s u r p l u s ( d e f i c i t ) $ 3 1 0 , 1 9 2 $ 4 4 0 , 6 3 4 $ 1 , 8 8 9 , 3 7 0 $ 2 , 1 8 9 , 6 9 4 $ 3 6 8 , 4 0 8 $ 2 0 7 , 9 0 6 $ 1 , 2 5 7 , 7 4 9 $ 1 , 8 0 2 , 8 7 2 $ 8 , 4 6 6 , 8 2 5 30 Kneehill County Notes to Consolidated Financial Statements December 31, 2014 24. Comparative Figures Wherever necessary, comparative figures have been reclassified to conform with current year financial statement presentation. 25. Approval of Financial Statements Council and Management approved these financial statements. 31