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Home My WebLink About1995 Financial Statementsc MUNICIPAL DISTRICT OF RNEEHILL # 48 FINANCIAL STATEMENTS DECEMBER 31, 1995 co ABLET T KOLKE ABLETT WO LKE Box 1207 110-4th Avenue North THREE HILLS, Alberta TOM 2A0 443-5343 Fax 443-7107 1.800-387-6581 Chartered Accountants 0 AUDITORS' REPORT To the Reeve, Council and Ratepayers Municipal District of Kneehill # 48 We have audited the balance sheet of the Municipal District of Kneehill # 48 as at December 31, 1995 and 1994 and the statements of equity and revenues, expenditures and net surplus for the years then ended. These financial statements are the responsibility of the municipal administration. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform our audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by administration, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the municipality as at December 31, 1995 and 1994 and the results of its operations for the years then ended in accordance with the accounting principles described in Note 1. CHARTERED ACCOUNTANTS 1~1 March 7, 1996 Three Hills, Alberta Members of the Institute of Chartered Accountants of Alberta James H. Ablett, B.Comm., C.A. Kevin M. Kolke, B.Comm., C.A. JOIN J MUNICIPAL DISTRICT OF KNEEHILL # 48 BALANCE SHEET DECEMBER 31, 1995 ASSETS CURRENT Cash Term deposits Taxes receivable Trade and other accounts receivable Inventories (Note 2) Prepaid expenses CAPITAL ASSETS (Note 3) OTHER (Note 4) TRUST ASSETS (Note 5) LIABILITIES CURRENT Bank overdraft Accounts payable and accrued liabilities Deferred revenue (Note 6) TRUST LIABILITIES 4; EQUITY ACCUMULATED SURPLUS EQUITY IN CAPITAL ASSETS RESERVES (Note 7) APPROVED ON BEHALF OF COUNCIL: 4; 1995 7,750,000 225,481 1,513,472 1,483,064 62 , 445 11,034,462 12,307,337 24,322 5,289 $ 23,371,410 $ 463,987 659,451 70,211 1,193,649 5,289 1,198,938 4,264,404 12,306,659 5,601,409 22,172,472 $ 23,371,410 1994 $ 123,910 6,950,000 215,968 296,115 1,862,615 46,389 9,494,997 12,934,660 35,480 30,759 $ 22,495,896 688,229 140,986 829,215 30,759, 859,974 4,201,262 12,934,660 4,500,000 21,635,922 $ 22,495,896 ABLETT KOLKE MUNICIPAL DISTRICT OF KNEEHILL # 48 STATEMENT OF EQUITY YEAR ENDED DECEMBER 31, 1995 1995 ACCM93LATED SURPLUS 1994 Balance, beginning of year $ 41201,262 $ 41150,786 Net surplus from operations 63,142 50,476 Balance, end of year $ 4,264,404 $ 4,201,262 EQUITY IN CAPITAL ASSETS Balance, beginning of year $ 12,934,660 $ 12,604,940 Add (deduct): Proceeds from sale of capital assets 730,151 61,500 Contributions from (to) operating fund (51551) 459,853 Net change in land held for resale 2,000 1,800 Provincial capital grants 165,000 - Development levies 4,859 - Transfer to capital reserves (11409) - original cost of capital asset disposals (1,523,051) (193,433) Balance, end of year $ 12,306,659 $ 12,934,660 RESERVES 0 Operating Balance, beginning of year $ 4,500,000 $ 3,200,000 Transfer from operating fund 11100, 000 1,300,000 Balance, end of year 5,600, 000 4,500,000 Capital Balance, beginning of year - - Transfer from capital fund 1 ,409 - Balance, end of year 1 ,409 - Total reserves $ 51601 ,409 $ 44500,000 C ABLETT KOLKE ks) C V MUNICIPAL DISTRICT OF KNEEHILL # 48 STATEMENT OF.REVENUE, EXPENDITURES AND NET SURPLUS YEAR ENDED DECEMBER 31, 1995 1995 Property taxes Requisition transfers Net taxes available for municipal purposes - Schedule 1 Revenue Provincial government transfers 'err Interest and patronage dividends Sales and user charges Drilling licences Licenses, permits and fines Rentals Penalties and costs on taxes Local government transfers Local improvement charges Other Total revenue Expenditures .Salaries, wages and benefits Contracted and general services Materials, goods, supplies and utilities Transfers to other governments Transfers to local boards and agencies Transfers to individuals and organizations Bank charges and interest Other Total expenditures - Schedule 2 Excess of revenue over expenditures Transfers from (to) other funds Capital fund Operating reserves Net surplus from operations C $ 9,661,625 4,752,770 4,908,855 3,701,723 516,023 319,363 51,366 24,615 69,150 53,573 36,654 11,999 31,404 4,815,870 9,724,725 2,063,526 5,160,169 1,200,594 33,604 49,530 8,750 8,519 40,442 8,565,134 1,159,591 3,551 (1,100,000) (1,096,449) $ 63,142 1994 $ 9,347,875 4,324,841 5,023,034 1,794,158 333,513 153,574 48,207 30,762 50,394 47,943 38,596 11,999 27,936 2,537,082 7,560,116 2,354,699 1,656,658 1,536,761 98,362 39,885 26,651 4,554 30,417 5,747,987 1,812,129 (461,653) (1,300,000) .(1,761,653) $ _ 50,476 ABLETT KOLKE f V MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 1. SIGNIFICANT ACCOUNTING POLICIES The Municipal District of Kneehill # 48 follows generally accepted accounting principles except where modified by Alberta Municipal Affairs. Significant accounting policies include: a) Fund accounting For financial reporting purposes, established funds consist of the operating, capital and reserve funds. The operating and capital funds are further segregated by functions which relate to specific areas of activity. b) Government transfers Government transfers are recognized in the financial statements as revenues in the period that the events giving rise to the transfer occurred, providing the transfers are authorized, any eligibility criteria have been met by the Municipality, and reasonable estimates' of the amounts can be made. c) Inventory Gravel inventories are valued at pit cost (including crushing, stripping and royalties) plus applicable trucking costs when stockpiled. All other material and supply inventory is valued at the lower of cost and net realizable value, cost being determined on a specific identification basis. W d) Capital assets Capital assets are recorded at cost; cost is not reduced by any applicable government assistance. No depreciation or amortization is charged to operations. Proceeds on disposition of capital assets are recorded as revenue of the capital fund with the assets removed from the accounts at cost; no gain or loss on dispositions are recognized. Road building costs, including road allowances purchased, are recorded as an operating fund expenditure. Minor and major machinery and equipment is segregated in that minor machinery and equipment consists only of those assets with an original cost of less than $ 10,000. Land held for resale is recorded at cost. Proceeds from the sale of such lands are recorded as operating fund revenue. ABLETT KOLKE 0 MUNICIPAL DISTRICT OF KNEEHILL # 48 ~r► NOTES TO. FINANCIAL STATEMENTS DECEMBER 31, 1995 1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D) e) Reserves Reserves are established at the discretion of Council to set aside funds for future operating and capital expenditures. Transfers to and/or from operating reserves are reflected as an adjustment to the operating fund while transfers to and/or from the capital reserves are shown as an adjustment to equity in capital assets. f) Equity in.capital assets Equity in capital assets represents the Municipality's net investment in capital assets and land held for resale, after deducting any long-term or other capital liabilities. g) Statement of changes in financial position A statement of changes in financial position has not been presented as the financial statements already adequately present the operating, financing and investing activities of the Municipality. 2. INVENTORIES 1995 Gravel $ 1,174,626 Other transportation amounts 278,896 Other functions 29,542 3. CAPITAL ASSETS $ 1,483,064 1994 $ 1,540,973 303,582 18,060 $ 1,862,615 1995 Land held for own use $ 242,512 Buildings 1,772,359 Engineering structures 21149,758 Minor machinery and equipment 740,972 Major machinery and equipment 5,126,063 Vehicles and power equipment 2,266,503 12,298,167 Land held for resale 9,170 1994 $ 247,242 1,772,359 1,885,472 770,842 5,696,999 2,554,576 12,927,490 7,170 $ 12,307,337 $ 12,934;660 ABLETT KOLKE %wJ MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 4. OTHER ASSETS Trochu Recreation Loan Alberta Municipal Financing Corporation shares, at cost 5. TRUST ASSETS AND LIABILITIES Tax sale trust account Britestone Huttarian Brethren 6. DEFERRED REVENUE Family and community support services grants Water project deposits - Mt. Vernon Water project deposits - Equity Infrastructure grant 7. RESERVES Operating reserves Contingency Transportation Capital reserves Planning 1995 $ 24,202 120 $ _ 24,322 1995 $ 5,289 $ 5,289 1995 $ 64,961 5,250 $ 70,211 1995 $ 5,100,000 500,000 5,600,000 1,409 $ 5,601,409 1994 $ 35,360 120 $ 35,480 1994 $ 5,289 25,470 $ 30,759 1994 $ 109,106 3,450 28,430 $ 140,986 1994 $ 4,000,000 500,000 4,500,000 $ 4,500,000 ABLETT KOLKE MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 8. SALARY AND BENEFITS DISCLOSURE Disclosure of salaries and benefits for elected municipal officials, the chief administrative officer and designated officers, as required by Provincial Regulation 379/94, is as follows: 1995 1994 Salary Benefits & Fees & Allowances Total Total (1) (2) (3) Councillor/Division Lowen, Marylea - 1 $ 15,640 $ 31110 $ 18,750 $ 20,340 Hoff, Otto - 2 14,450 2,094 16,544 17,097 Boake, Robert - 3 17,400 3,876 21,276 21,672 Marz, Richard * - 4 22,570 2,863 25,433 25,098 Hanger, James - 5 13,200 1,230 14,430 16,089 Vickery, Richard - 6 16,330 3,100 19,430 231,944 Wagstaff, Glen - 7 12,940 1,488 14,428 21,759 Reeve * Municipal Administrator Jeffery, John C. $ 66,930 $ 81800 $ 75,730 $ 75,199 (1) Salary includes regular base pay, bonuses, overtime, lump sum payments and any other direct cash remuneration. ® (2) Employer's share of all benefits and contributions or payments made on behalf of employees including Local Authorities Pension, Canada Pension Plan, Unemployment Insurance, health care, dental, group life and other insurance, professional memberships and tuition. (3) Benefits and allowances includes the employer's share of travel and car allowances. 9. UNFUNDED PENSION LIABILITY All permanent, full time employees of the Municipal District of Kneehill participate in the Local Authorities Pension Plan. Current and past service pension benefit contributions are recorded as expenditures in the year in which they become due. C AB LETT KO LKE 0 MUNICIPAL DISTRICT-OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 9. UNFUNDED PENSION LIABILITY (CONT'D) Total current and past service contributions by the Municipal District to the Local Authorities Pension Plan in 1995 were $ 60,858 (1994 - $ 71,929). Total current and past service contributions by the employees to the Local Authorities Pension Plan in 1995 were $ 55,452 (1994 - $ 67,137). An actuarial valuation of the Local Authorities Pension Plan was carried out as at December 31, 1993, by William M. Mercer Limited. The resulting actuarial report disclosed an unfunded liability of $ 893.2 million. The Municipal District of Kneehill's share of this amount has been calculated as $ 139,764, based on pensionable salaries as at December 31, 1994. Based on information available to February 13, 1996, the Local Authorities Pension Plan has provided an estimate to indicate that the Municipal District of Kneehill's share of the unfunded liability to now be $ 118,650, based on pensionable salaries as at December 31, 1995. The provisions of the legislation relating to the Plan require that the unfunded liability in the Plan must be eliminated on or before December 31, 2036. Additional contributions are to be paid annually by the Crown in the aggregate amount of 30% of the total required, and 35% each by the employers and employees based on the pensionable salaries of the employees, to eliminate the unfunded liability. 10. DEBT LIMITS Section 271 of the Municipal Government Act requires that debt and service on debt limits as defined by Provincial Regulation 375/94 for the Municipal District of Kneehill # 48 be disclosed as follows: 1995 Total debt limit $ 14,567,088 Total debt - Amount under total debt limit $ 14,567,088 fip~ Service on debt limit $ 2,431,181 Service on debt - Amount under service on debt limit $ 24431,181 1994 $ 11,340,174 $ 11,340,174 $ 1,890,029 $ 1,890,029 ABL ETT KOLKE D ~ MUNICIPAL DISTRICT OF KNEEHILL # 48 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 11. CONTINGENT LIABILITY The Municipal District is a member of the Alberta Local Authorities Reciprocal Insurance Exchange (ALARIE). Under the terms of membership, the Municipal District 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. 12. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform with the presentation format adopted for the current year. AP*L Wai C ABLETT KOLKE w MUNICIPAL DISTRICT OF KNEEHILL 48 ~r SCHEDULE OF NET TAXES AVAILABLE FOR MUNICIPAL PURPOSES YEAR ENDED DECEMBER 31, 1995 Schedule 1 1995 1994 Property taxes Farmland $ 21828,812 $ 21844,398 Residential 533,189 503,655 Industrial 1,922,482 11774,935 Commercial 168,592 177,325 Linear property 4,2071160 4,046,566 Grants in lieu 1,390 996 C 9,661,625 9,347,875 Requisition transfers Alberta School Foundation Fund 4,703,370 4,234,174 Kneehill Foundation 49,400 57,653 Alberta Planning Fund - 25,072 Olds Hospital District - 7,942 4,752,770 4,324,841 Net taxes available for municipal purposes $ 4,908,855 $ 5,023,034 w 10 ABLETT KOLKt MUNICIPAL DISTRICT OF KNEEHILL # 48 SCHEDULE OF FUNCTIONAL EXPENDITURES YEAR ENDED DECEMBER 31. 1995 Schedule 2 1995 1994 Legislative Administrative Fire protection Ambulance Utility and development Transportation and bridge inspection Water supply and distribution Sewer services Waste management Family and community support services Cemetery Planning Agricultural services Parks and recreation C $ 148,938 595,854 87,085 26,600 100,191 7,110,339 18,754 1,686 153,452 103,960 9,490 33,348 116,535 58,902 $ 8,565,134 $ 145,999 609,660 53,808 26,905 99,933 4,212,435 11,376 1,623 160,305 110,081 7,723 179,072 129.067 $ 5,747,987 ABLETT KOLKE