Brooks, Alberta, Canada

City of Brooks, Alberta, Canada AnnualAnnual FinancialFinancial ReportReport forfor thethe yearyear endedended DecemberDecember 31st,31st, 20102010

Prepared by: City of Brooks Corporate Services Department

2 Table of Contents

Item Page Item Page Introduction 4 Statistical Section - Unaudited 43-54 City Council 5 Demographics and Other Statistics 44

Senior Management 6 Expense by Function 45

Strategic Goals and Priorities 7 Expense by Object 46

Vision Statement 8 Revenues by Function 47

Message from the Mayor 9 Revenues by Object 48

Message from the Acting CAO 10 Taxes and Assessment 49

Message from the Finance Manager 11 Tax Collection 50

Organizational Structure 12 Tangible Capital Assets 51

Government Finance Officers Association Canadian Award 13-14 Long Term Debt 52 for Financial Reporting Reserves 53 Consolidated Financial Statements of the City of Brooks for the 15-42 Year Ended December 31st, 2010 Building Permits 54 Management’s Responsibility for the Consolidated Financial 16 Brooks Community Information 55-60 Statements Quick Facts about Brooks 55-56 Auditors Report 17 Local Area Map 57 Consolidated Statement of Financial Position 18-22 Things to do and Places to Visit 58 Notes to the Financial Statements 23-37 Special Events 59 Schedule 1 - Schedule of Net Municipal Taxes 38 City of Brooks - Contact Information 60 Schedule 2 - Schedule of Government Transfers 39

Schedule 3 - Schedule of Expenses by Object 40

Schedule 4 - Schedule of Segmented Disclosure 41-42

3 Introduction

Originally, the area of Brooks was used as a buffalo hunting ground for the Blackfoot and Crow natives. After Treaty Seven was signed in 1887, homesteaders moved into the area to begin dry land farming. The arrival of the Canadian Pacific Railroad saw more settlers move to the area of Brooks. By 1904, Canada Post was interested in putting a post office in the settlement; however, the area was still unnamed. By a Canada Post sponsored contest, the new area was named after Noel Edgell Brooks, a Canadian Pacific Railway Engineer from Calgary. By 1910, the Village of Brooks was formally established and became a Town in 1911. On September 1st, 2005, in Alberta’s Centennial Year, Brooks changed status to City and became Alberta’s Centennial CityTM. To celebrate the changing to City status, Brooks hosted an event which included a military jet fly-over, performances by local entertainers, and a firework extravaganza. The event was a huge success with over 2,000 people in attendance.

The City of Brooks is a city in South-Eastern Alberta, Canada with a population of about 14,000. Brooks is situated in the middle of the Canadian Prairies where farming and ranching has been an integral part of our culture for over 100 years. Situated in one of Alberta’s most active gas fields and home to 200 production and service companies, Brooks has excelled in the oil and gas industry. There are 26,000 wells in the area and several major oil and gas regional offices. Today, the oil and gas industry is a central driving force for our economy. Referred to as the “City of 100 Hellos” with over 100 languages being spoken, Brooks is home to one of the most culturally diverse populations in Canada. Growing from a strong rural foundation, Brooks is meeting and embracing the challenges that have paired rural Canadian friendliness with global population trends. From its time-honoured cowboy roots to a heterogeneous melting pot of cultures, Brooks is flourishing as a unique and vibrant city. Traditional prairie western culture may be alive and well in Brooks but so is the growing multi-cultural flavor of the community. Brooks is very proud of its growing traditions of being a diverse and inclusive community.

In 2010, the City of Brooks celebrated its 100th Anniversary with a full year of activities and events. Residents of Brooks and the surrounding region enjoyed events such as the arrival of the Olympic Torch Relay, a Mother’s Day Tea, Canada Day Celebrations, and the Southern Alberta Summer Games. The centrepiece event was the three-day Centennial Celebration Weekend held from July 30th to August 1st. Aspects of the event included a free pancake breakfast, parade, historical displays, games, activities, live entertainment, food vendors, carriage rides, a guided historical building tour, historical art display, a free community street dance, fireworks, opening of a time capsule, free barbeque dinner, talent show, interdenominational church service, outdoor movie and a visit from a CP Rail Steam Train. The entire weekend was historical themed and the focus was on bringing our residents - past, present and future - together to celebrate the richness of our community.

4 City Council

The City of Brooks is governed by a Mayor and six Council Members. Municipal elections are held every three years and the most recent election was held on Tuesday, October 18th, 2010.

Mayor & Council 2007-2010

Left to Right: Councillor Bill Prentice, Councillor Rolf Bander, Councillor Clayton Johnson, Mayor Martin Shields, Councillor Norman Gerestein, Councillor Kimberley Sharkey and Councillor Noel Moriyama.

Mayor & Council 2010-2013

Left to Right: Councillor Barry Morishita, Councillor Ron Yewchuk, Councillor Norman Gerestein, Councillor Kimberley Sharkey, Councillor Bill Prentice, Mayor Martin Shields and Councillor Noel Moriyama.

5 Senior Management Team

Alan Martens, Acting Chief Administrative Officer

Amanda Peterson, City Clerk

Russ Tanner, Director of Community Development Services

City of Brooks Auditor City of Brooks Banker KPMG LLP Chinook Credit Union Ltd.

6 Strategic Goals & Priorities

In December 2010, the newly elected Council came together and set strategic Goals and Priorities for the next three year term. These goals, which stem from the Municipal Sustainability Plan that was approved in October 2010, are engrained into the organization through department work plans.

City of Brooks Objectives 2011-2013

Create and implement a marketing and/or promotion plan for Brooks ~ Ensure environmental sustainability ~ Implement Comprehensive Recreation, Parks and Culture Master Plan ~ Completion of infrastructure initiatives ~ Establish and continue communication with external stakeholders ~ Advance programs/projects that contribute to regional sustainability ~ Review and update internal planning documents ~ Implementation of Welcoming and Inclusive Community Plan

7 Vision Statement

8 Message from the Mayor

The 2010 City of Brooks Annual Financial Report is the City’s commitment to open, transparent government. It describes the City’s fiscal position for 2010 and how the collection of taxes, user fees, provincial and federal grants are utilized to provide services externally and internally for the City of Brooks. Council’s role is to meet the supply and demand of our citizens in a fiscally responsible manner; this is always a challenging endeavour during a changing economic environment. We focus on results and provide service deliverables that are manageable with the available funding and tax revenues. The future will continue to be challenging, however, Council is prepared to embrace these challenges and ensure our community remains unique, inviting and welcoming to new Canadians, new Albertans, and our long term residents. Accomplishments in 2010 were visible by the multiple street improvements throughout the City including the 2nd Street West Improvement Project as well as the completion of our Centennial Regional Arena. Council will continue building on our accomplishments, meeting new challenges and finding innovative ways to enhance our community to ensure an exceptional quality of life for our citizens. Regards,

Martin Shields Mayor, City of Brooks

9 Message from the Acting-CAO

2010— what a year for Alberta’s Centennial City! As a community we celebrated our 100th anniversary. This was highlighted with the Olympic Torch Relay passing through our community in January, hosting of the Southern Alberta Summer Games in July and the grand finale, Centennial Celebration Weekend July 30th through August 1st. 2010 represented the first complete year of operation of the Centennial Regional Arena and the grand opening of the 2nd Street West widening and rehabilitation project. Municipal elections were also held in 2010. During new Council’s strategic planning session held in December, they formulated the following objectives for 2011-2013:  Create and implement a marketing and/or promotion plan for Brooks  Ensure environmental sustainability  Implement Comprehensive Recreation, Parks and Culture Master Plan  Completion of infrastructure initiatives  Establish and continue communication with external shareholders  Advance programs/projects that contribute to regional sustainability  Review and update internal planning documents  Implementation of Welcoming and Inclusive Community Plan A new document called the Municipal Sustainability Plan was adopted by Council in October, 2010. The five pillars of this plan are environmental, economic, social, cultural, and governance. Each of the above objectives were developed to advance at least one of these pillars. In September the City adopted the Welcoming and Inclusive Community Plan and one of the objectives is to deal solely with this important aspect to our community. Staff looks forward to working with Council in the coming years to attain these goals and continue to strive to achieve our vision: “A Community that People are Proud to Call Home”. Regards,

Alan Martens Acting Chief Administrative Officer

10 Message from the Finance Manager

Each year the management of the City of Brooks has the task of compiling all the relevant information that will enable Council to report on the financial condition of the municipality to their stakeholders. The resulting financial statements are intended to provide meaningful information as to the City’s assets and liabilities, net debt, sources of economic resources and how those resources have been allocated and consumed in the course of providing municipal services. The financial statements must be prepared in accordance with the provisions set out in the Municipal Government Act and are required to comply with Canadian generally accepted accounting principles as recommended by the Public Sector Accounting Board. The consolidated financial statements of the City of Brooks have been audited by KPMG, LLP. In their opinion, the statements present fairly in all material respects, the City’s financial position as at December 31, 2010 and the results of its operations, change in its net financial assets and its cash flows for the year, in accordance with Canadian Public Sector accounting standards. New in 2010 was the requirement to include supplementary information detailing the sources and uses of municipal funds based on service segments of the municipalities. The Schedule of Segmented Disclosure provides specific information on general government services, protective services, transportation services, planning & development, environmental services, recreation & culture, and family & community services. ~2010 Financial Year in Review~ Assets and Liabilities The City’s contribution in 2010 to the Newell Regional Services Corp. water treatment facility was $5,592,0001. This has been recorded as a trade accounts receivable pending the issue of preferred shares to reflect this investment. This contribution was funded from Provincial Government Grants received both in 2010 and in previous years. The City’s contribution from 2009 of $4,951,000 is now reflected as an investment with the issue of 4,951 preferred shares during the current year. Tangible capital assets acquired throughout the year totaled $16,294,000 with the widening of 2nd Street West and the completion of the Centennial Regional Arena making up the majority of these acquisitions. The City’s total debenture debt increased from $7,784,000 in 2009 to $10,196,000 in 2010. This 2,413,000 increase is the net result of borrowing $3,000,000 for the 2nd street West Widening project and repayments of existing debenture debt. As regulated by the Municipal Government Act, the City of Brooks debt limit is established at $31,724,000. Net Financial Assets In 2010 the City reported a $3,771,000 increase in net financial assets over the previous year. A strong Net financial assets position represents the City’s ability to sufficiently fund their municipal services. Revenues, Expenses & Results of Operations The City was required to report a net loss on the disposal of tangible capital assets in the amount of $1,497,000. This disposition was mainly comprised of the 50% share of the Brooks Regional Airport that was transferred to the County of Newell No. 4, and infrastructure that was removed and subsequently replaced during the 2nd Street West widening project. Amortization expense was recorded in the amount of $4,328,000; this non-cash expense represents the value of the City’s tangible capital assets that were used up in the reporting period based on historical costs. The 2010 operations resulted with an increase to the City’s accumulated surplus of $14,230,000 bringing the total accumulated surplus to $141,037,000. The accumulated surplus indicates the economic or financial resources available to the City to provide future services. The City’s equity in tangible capital assets increased by $8,043,000 and reserve balances set aside for predetermined purposes had a net increase of $332,000.

Respectfully submitted,

Shelley Thomas, CGA Finance Manager

1All numbers within this report are rounded to the nearest $1,000.

11 Organizational Structure

12 Government Finance Officers Association Canadian Award for Financial Reporting

Transmittal letter of the Annual Financial Report The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Canadian Award for Financial Reporting to the City of Brooks for its annual financial report for the fiscal year ended December 31, 2009. 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. 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 submitting it to GFOA.

Documents referencing the Annual Financial Report The City of Brooks annual financial report for the year ended December 31, 2009 was awarded the Canadian Award for Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). 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 report 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. 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 our annual financial report for the current year to the GFOA.

13 Government Finance Officers Association Canadian Award for Financial Reporting

14 Consolidated Financial Statements of the City of Brooks for the Year Ended December 31, 2010

15 Management’s Responsibility for the Consolidated Financial Statements

16 Auditor’s Report

17 Consolidated Financial Statement

18 Consolidated Financial Statement Con’t

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41 Consolidated Financial Statement Con’t

42 Statistical Section- Unaudited

43 Demographics & Other Statistics 2010

44 Expenses by Function

Consolidated Expenses by 2008 2006 2007 2009 2010 Function (restated)

Legislative 244,186 310,462 343,345 451,108 681,408 Administration 1,577,412 1,681,576 1,943,831 2,329,780 2,580,120 Protective Services 2,382,009 5,540,657 3,344,424 3,772,611 3,404,214 Transportation 2,168,866 2,689,772 5,453,193 5,969,994 6,472,974 Utilities 3,452,183 2,796,070 3,230,488 3,867,915 4,011,648 Public Health 569,021 614,326 663,209 680,916 687,941 Planning & Development 988,082 3,426,276 6,814,679 638,216 614,319 Rec & Parks 3,796,052 4,315,607 3,794,910 4,524,660 5,126,078 Other 15,632 114,433 37,309 - - Total Expenditures by Function 15,193,443 21,489,179 25,625,388 22,235,200 23,578,702

45 Expenses by Object

2008 Consolidated Expenses by Object 2006 2007 2009 2010 (restated)

Salaries, Wages and Benefits 4,618,541 4,895,853 5,634,516 6,714,945 6,216,011 Contracted and General Services 2,683,370 3,942,569 4,307,046 6,799,421 7,733,510 Materials, goods, Supplies and Utilities 2,167,968 1,967,954 3,893,668 2,588,222 3,185,861 Grants and Transfers 1,222,817 1,247,028 7,523,776 - - Transfers to boards, agencies, organizations - - - 1,867,870 1,684,912 Bank Charges and Short-Term Interest 24,243 33,529 35,997 41,932 42,263 Interest on Long Term Debt 332,286 298,921 289,596 273,707 376,779 Capital Assets Acquired 3,707,478 9,052,748 - - - Amortization of Tangible Capital Assets - - 3,923,169 3,939,052 4,328,358 Other 403,433 50,577 17,620 10,051 11,008 Total Expenditures by Object 15,160,136 21,489,179 25,625,388 22,235,200 23,578,702

46 Revenues by Function

Revenues by Function 2010 Net Taxes 9,260,518 Fiscal Services 1,751,575 General Government 377,901 Protective 1,566,839 Transportation 9,692,367 Utilities 9,946,780 Public Health & Welfare 578,468 Planning & Development 573,172 Recreation & Parks 4,061,229 Total Revenues 37,808,849

47 Revenues by Object

Consolidated Revenues by Object 2006 2007 2008 2009 2010

Net Taxes 6,761,189 7,401,817 8,395,862 8,848,994 9,260,518 Local Improvement Levies 352,036 258,828 97,482 91,815 75,489 Sales and User Fees 5,642,410 7,282,531 5,271,333 4,749,657 5,317,809 Government Transfers and donations 4,354,255 9,590,070 1,907,653 2,297,234 1,958,320 Penalties & Costs of Taxes 160,900 126,081 250,825 273,754 335,157 Franchise and Concession Contracts 831,786 830,071 870,405 948,986 1,057,939 Investment Income 845,614 1,036,487 962,699 513,596 327,588 Licenses, Permits and Rentals 896,798 577,357 988,372 995,872 928,504 Developer's agreements and Levies 480,320 246,277 746,807 34,406 17,301 Net Gain (Loss) on Disposal of Capital Assets 29,400 1,100 144,282 100,586 (1,496,616) Other 1,204,461 1,047,767 1,478,075 1,794,228 1,414,902 Contributed Assets - - - 14,997 88,173 Government Transfers for Capital - - 11,352,599 19,085,218 18,523,765 Total Revenue Object 21,559,169 28,398,386 32,466,394 39,749,343 37,808,849

48 Taxes & Assessment

Property Taxes Levied 2006 2007 2008 2009 2010 Taxation: Real Property Taxes 10,250,335 10,999,091 11,943,818 12,346,662 12,674,414 Linear Property Taxes 442,084 428,792 402,741 384,204 352,059 Government Grants in place of taxes 46,028 45,698 50,365 49,963 50,561 10,738,447 11,473,581 12,396,924 12,780,829 13,077,034 Requisition: Alberta School Foundation Fund 3,489,380 3,611,303 3,549,377 3,411,031 3,305,995 Christ the Redeemer RCSSD 346,628 322,881 314,748 332,767 323,939 Newell Senior's Foundation 141,250 137,580 136,937 188,037 186,582 3,977,258 4,071,764 4,001,062 3,931,835 3,816,516

Net taxes for municipal purposes 6,761,189 7,401,817 8,395,862 8,848,994 9,260,518

Mill Rate - Municipal Portion Only Residential 6.83 6.365 6.0007 6.1139 6.3401 Farmland (Annexation) 3.33 3.33 3.33 3.33 3.33 Commercial/Industrial 10.44 9.554 9.5817 9.7663 10.1276

Taxable Assessments Residential 636,967,890 749,870,330 908,399,220 941,253,750 962,372,350 Farmland 274,130 291,130 704,110 384,390 356,840 Commercial/Industrial 223,590,130 268,060,500 306,564,660 315,015,930 311,378,810 Total Taxable Assessment 860,832,150 1,018,221,960 1,215,667,990 1,256,654,070 1,274,108,000

Total Taxable Assessment, 2006-2010 1,500,000,000

1,000,000,000

500,000,000

- 2006 2007 2008 2009 2010

49 Tax Collection

2005 2006 2007 2008 2009 2010 Taxation Levied 10,306,171 10,738,447 11,473,581 12,396,924 12,780,829 13,077,034 Year-end Receivables 447,356 364,597 476,875 992,021 1,014,663 1,262,822

50 Tangible Capital Assets

Tangible Capital Assets

Asset Category 2009 Asset Value 2010 Asset Value Engineered Structures 105,489,606 107,020,870 Buildings & Improvements 9,574,468 28,697,082 Machinery & Equipment 4,215,139 4,719,155 Land 9,609,137 9,617,667 Land Improvements 3,855,622 7,411,739 Vehicles 4,373,163 4,439,471 Construction in Progress 23,881,504 12,804,576 SUB-TOTAL 160,998,639 174,710,560

Accumulated Amortization 52,691,984 55,948,787

NET BOOK VALUE 108,306,655 118,761,773

51 Long Term Debt

Long Term Debt 2006 2007 2008 2009 2010 Tax Supported Debentures 3,708,380 4,129,847 3,949,264 5,458,847 8,079,016 Self Supported Debentures 1,785,096 1,385,083 1,102,212 902,059 694,368 Eastern Irrigation District Mortgage 1,423,367 1,423,367 1,423,367 Total Debentures 5,493,476 5,514,930 6,474,843 7,784,273 10,196,751

Debt Limits Total Debt Limit 26,707,208 30,246,636 31,715,693 32,465,001 31,724,154 Total Debt 5,493,476 5,514,930 6,474,843 7,784,273 10,196,751 Amount of Debt Limited unused 21,213,732 24,731,706 25,240,850 24,680,728 21,527,403

Debt Servicing Limit 4,451,201 5,041,106 5,285,949 5,410,834 5,287,359 Debt Service 840,120 764,953 665,671 862,637 959,608 Amount of Debt Servicing Limit Unused 3,611,081 4,276,153 4,620,278 4,548,197 4,327,751

Debt Per Capita 473 406 477 573 751

Long Term Debt as a Percentage of Expenditures 43% 35% 25% 26% 36%

2010 Debt Per Capita Long Term Debt as a Percentage of 800 Expenditures 700 100% 600 80% 500 400 60% 300 40% 200 20% 43% 35% 36% 100 25% 26% 0 0% 2006 2007 2008 2009 2010 2010 2009 2008 2007 2006

52 Reserves

Reserves 2009 2010

Operating Operating Contingency 529,474 551,649 Administration 485 485 Protective Services 25,000 25,000 Environmental 4,902,918 5,663,444 Engineering Services 408,785 91,053 Economic Development 30,809 38,809 Recreation, Parks and Culture 442,952 435,181 Other 25,000 25,000 Total Operating Reserves 6,365,423 6,830,621

Capital Administration 256,167 209,003 Protective Services 238,300 313,300 Environmental 4,455,295 4,460,620 Engineering Services 2,831,786 3,258,287 Economic Development - - Recreation, Parks and Culture 1,171,114 1,048,168 Other 2,749,953 2,280,365 Total Capital Reserves 11,702,615 11,569,743

53 Building Permits

Building Permit Values 2006 - 2010 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 Building Permit New Dwelling Units vs. $15,000,000 Values 2006-2010 Building Permits Approved $10,000,000 250 $5,000,000 200 $0 Building Permits 2006 2007 2008 2009 2010 150 Approved 100 New Dwelling Units 50 0 2006 2007 2008 2009 2010 54 Quick Facts about Brooks

elcome to the City of Brooks. Referred to as the “The W City of 100 Hellos” with over 100 languages being spoken, Brooks is home to one of the most culturally diverse populations in Canada. Growing from a strong rural foundation, Brooks is meeting and embracing the challenges that have paired rural Canadian friendliness with global population trends. From its time-honoured cowboy roots, to a heterogeneous melting pot of cultures, Brooks is flourishing as a unique and vibrant city. Traditional prairie western culture may be alive and well in Brooks but so is the growing multi-cultural flavour of the community. Brooks is very proud of its growing traditions of being a diverse and inclusive community.

The City of Brooks is home to 13,581 residents and there are an additional 7,101 in the surrounding County of Newell. Located in South- Eastern Alberta, we are the largest urban centre within 100 kilometres. Our region is economically centred around the oil and gas industry, as well as agriculture. The County of Newell is very rich in natural resources and there are well over 30,000 oil and gas wells within the municipal boundaries; the strong activity in the oil & gas sectors provides jobs and economic stability for our region.

Cultural and arts organizations and events are also on the rise in Brooks as it hosts annual music festivals, southern Alberta’s only Shakespearean company along with growing family oriented festivals and events ranging from Medieval fairs to Dragon Boat Races.

55 Quick Facts about Brooks

Residents and visitors find themselves heading to Lake Newell just minutes from town to catch some sun on the beach, pitch a tent and boat or fish on the largest lake in Southern Alberta. Sailors know the water well and recognize it as the best sailing lake in Alberta as they host the annual Prairie Wind Regatta each July. For the outdoor orientated, Brooks offers a further range of activities from trophy fishing, in both summer and winter months, to a world class Sporting Clay& American Trap Shooting ranges.

Not to be outdone just north of the City is Dinosaur Park, a UNESCO World Heritage site. Dinosaur Park is one of the most spectacular tracts of badlands in Canada and recognized as one of the world’s most important deposits of dinosaur skeletons and pre-historic fossils. The area is also host to many rare and endangered plants, animals and habitat. An archeological field station with daily summer bus tours complements a full service campground which also features hiking, picnicking and family fun.

Having recently celebrated its 100th anniversary the City of Brooks is proud of its growing traditions and multi-cultural makeup and welcomes you to come for a visit in what we think is one of the finest examples of countryside living in Canada.

56 Brooks, Alberta

57 Things to Do & Places to Visit

58 Special Events

59 City of Brooks

201—1st Avenue West Bag 880 Brooks, AB T1R 0Z6

Website: www.brooks.ca Telephone: (403)362-3333 Fax: (403)362-4787

The City of Brooks would like to acknowledge the following: * City Staff for their contributions to this report

This Annual Report has been prepared and compiled by the City of Brooks Corporate Services Department.

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