Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
The Regular Meeting of Council was held on Monday, August 11th, 2014 at 7:00 pm in the Community Hall.
Present: Mayor Cassidy, Deputy Mayor Jungkind, Councillors McKay, Mapes, Dohey, Jameson & Maher
Staff: Ross Potter – Director of Protective Services/Fire Chief, Ian Frankton - Director of Recreation and Community Services, David Steele – Senior Administration Officer, Harvey Harris – Director of Finance, Stacey Barnes – Executive Assistant, Todd Pittman – Director of Public Works
Absent: Councillors Candow & Coakwell
Other: Jean Locke, Sarah Ladik (Hub), Pat Wray, Drew Queen, Todd Ashton
1. CALL TO ORDER: This Meeting was called to order at 7:00 pm with Mayor Cassidy presiding.
2. ADOPTION OF AGENDA
#14-258 MOVED BY: CLLR MAHER SECONDED BY: CLLR JAMESON
CARRIED Let it be noted that agenda item 11) Bylaws was moved to 13) and 14) In Camera – Matter still under consideration was added to the agenda.
3. DECLARATION OF INTEREST There is no Declaration of Interest for the Regular Meeting of Council, Monday, August 11th, 2014.
4. ANNOUNCEMENTS, AWARDS, CEREMONIES & PRESENTATIONS There is no Announcements, Awards, Ceremonies or Presentations for the Regular Meeting of Council, Monday, August 11th, 2014.
5. MINUTES Minutes of the Regular Meeting of Council, July 28th, 2014
#14-259 MOVED BY: CLLR MAHER SECONDED BY: DEPUTY MAYOR JUNGKIND
That the Council of the Town of Hay River accepts the Minutes of the Regular Meeting of Council, July 28th, 2014 as presented. CARRIED
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Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
6. BUSINESS ARISING FROM THE MINUTES There was no business arising from the Minutes of the July 28th, 2014 Regular Meeting of Council.
7. CORRESPONDENCE & PETITIONS
RECOMMENDATION:
#14-260 MOVED BY: CLLR JAMESON SECONDED BY: CLLR DOHEY
THAT THE COUNCIL OF THE TOWN OF HAY RIVER accepts the Correspondence and Petitions as presented. CARRIED BACKGROUND:
a) Research License Application from Aurora Research Institute – Aurora College
Information on that research undertaking that has now been modified to include Hay River within the scope of research.
Note that it is believes she is somewhat behind on her original schedule due to smoke/fire conditions. COUNCIL POLICY / STRATEGY OR GOAL:
N/A
APPLICABLE LEGISLATION, BYLAWS, STUDIES, PLANS:
N/A
FINANCIAL IMPLICATIONS:
N/A
ALTERNATIVES TO RECOMMENDATIONS:
N/A
ATTACHMENTS:
Research License Application from Aurora Research Institute – Aurora College
Prepared by:
Stacey Barnes Executive Assistant
Date: August 7th, 2014 Page 2 of 17
Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
8. MAYORS REPORT
RECOMMENDATION:
#14-261 MOVED BY: DEPUTY MAYOR JUNGKIND SECONDED BY: CLLR DOHEY
THAT THE COUNCIL OF THE TOWN OF HAY RIVER accepts the Mayors Report for July 2014 as presented. CARRIED BACKGROUND:
Formal Meetings: -Representatives from Royal Bank -Greg Morrow – RCMP -Representatives from ATCO/NUL -Franchise Committee -Building Committee -Personnel Committee -Representatives from NTCL -Jackie Milne, Rob Marshal – Northern Farm Training Institute -Collective Bargaining -Darcy King
Informal Meeting -Wally Schumann – President, Hay River Metis Nation -Tom Colossimo – ITI
Formal Events: -MACA formula funding review -MACA regional funding review
Informal Events: -Kakisa dinner -Judy the Manners Lady
Upcoming Meetings: Committees of Council Administration Meeting As required
COUNCIL POLICY / STRATEGY OR GOAL:
N/A
APPLICABLE LEGISLATION, BYLAWS, STUDIES, PLANS:
N/A
Page 3 of 17
Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
FINANCIAL IMPLICATIONS:
N/A
ALTERNATIVES TO RECOMMENDATIONS:
N/A
ATTACHMENTS:
N/A
Prepared by:
Andrew Cassidy Mayor
Date: August 7th, 2014
9. ADMINISTRATIVE ENQUIRIES
Deputy Mayor Jungkind: I would like to bring up downtown parking, it needs to start being enforced, staff members for businesses are parking longer than 2 hours.
Councillor Coakwell: Question Directed to Director of Public Works – Do we have a paving program? Or any further work figured out?
Director of Public Works, Todd Pittman: Answer Directed to Councillor Coakwell – We are still working on one, there will be a paving business coming to Town to do so work.
Councillor Dohey: Wondering if we have an update on the Recreation Centre re: Stantec and cost spent.
Director of Recreation, Ian Frankton: Answer Directed to Councillor Dohey – 75K has been spent so far, looking at next week for final numbers
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Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
10. PUBLIC WORKS COMMITTEE REPORTS
a) Excused Absence
RECOMMENDATION:
#14-262 MOVED BY: DEPUTY MAYOR JUNGKIND SECONDED BY: CLLR COAKWELL
THAT THE COUNCIL OF THE TOWN OF HAY RIVER excuses Councillor Dohey from the Public Works Committee Meeting, Tuesday, August 5th, 2014 and Councillor Mapes from the Regular Meeting of Council, Monday, August 25th, 2014. CARRIED BACKGROUND:
Councillor Dohey has requested to be excused from the Public Works Committee Meeting, Tuesday, August 5th, 2014, further Councillor Mapes has requested to be excused from the Regular Meeting of Council, Monday, August 25th, 2014.
COUNCIL POLICY / STRATEGY OR GOAL:
N/A
APPLICABLE LEGISLATION, BYLAWS, STUDIES, PLANS:
N/A
FINANCIAL IMPLICATIONS:
N/A
ALTERNATIVES TO RECOMMENDATIONS:
N/A
ATTACHMENTS:
N/A
Prepared by: Reviewed by:
Stacey Barnes David Steele Executive Assistant Senior Administrative Officer
Date: July 31st, 2014 Date: July 31st, 2014
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Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
b) Public Works and Planning Monthly Report
RECOMMENDATION:
#14-263 MOVED BY: DEPUTY MAYOR JUNGKIND SECONDED BY: CLLR COAKWELL
THAT THE COUNCIL OF THE TOWN OF HAY RIVER accepts the report titled “Public Works & Planning Monthly Report” for July 2014 as presented. CARRIED BACKGROUND:
• Normal operation and maintenance activities were completed throughout the month of July.
Item Level of Activity Timeline for Water License Report Title / Action Required Submission
Annual Report (Submitted) March 31 each year
Identify Surveillance Network Program station(s) with signage. At all times
Identify Water Supply and Waste Disposal Facilities with signage. At all times
Copies of Water License in the Town of Hay River office(s), Solid Waste Disposal Facilities, and Water Supply Facilities At all times
Notify Inspector prior to conducting maintenance work on Prior to maintenance lagoon cells. activities
Biochemical Oxygen Demand and Carbonaceous Biochemical Oxygen Demand trend analysis August 31, 2014
Sludge Management Plan Submitted
Solid Waste Disposal Facility Drainage Study Submitted
Solid Waste Disposal Facilities Operations Report to Submitted measure, defines, and identifies the remaining lifespan of the facilities and volumes of Waste the facilities can accept. Within 90 days of issuance of the Water Snow Disposal Plan License (Submitted)
Review of the Snow Disposal Plan and submission of Annually – Annual updates/revision. Reporting Requirement Once every two years Inspection of constructed berms, dykes, and dams within during the summer the Sewage Disposal Facility. season by an Engineer
As-built plans and Record Drawings of the Sewage Disposal Facilities, lagoon and associated structures, Within six months of sludge storage area, Solid Waste Facilities, and issuance of the Water Biotreatment Pad. License (Submitted) Within six months of A surveyed description of the wetland and associated issuance of the water
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Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
structures that comprise part of the Sewage Disposal Licence (Submitted) Facilities 60 days prior to the Notification of Modification proposed Modification
Modifications to Water Supply Facilities and Waste Disposal Facilities Within 90 days of Interim Closure and Reclamation Plan for the Solid Waste completion of the Disposal Facility Modifications
At least six months prior to abandoning any Waste Disposal Final Closure and Reclamation Plan Facilities
Final design drawings for the construction of any dams, dykes, or control structures Prior to construction
Within 90 days of As-built plans and Record Drawings completion Within three months of Updated plan for the operation and maintenance of the issuance of the Water Waste Disposal Facilities (Note that this can be one plan or License (Under one plan for each Facility.) Revision)
Review of Operation and Maintenance Plan and submission Annually – Annual of updates/revision Reporting Requirement
Spill Contingency Plan in accordance with Indian and Northern Affairs Canada’s 2007 “Guidelines for Spill Contingency Planning” Submitted
Review of Spill Contingency Plan and submission of Annually – Annual
updates/revision Reporting Requirement Solid Waste Site Management of Solid Waste contract is ongoing.
Cover is being applied to reduce the risk of reoccurrence of fires on site.
Electronic Waste Removal
The Town of Hay River is working in conjunction with ENR to consolidate and ship the electronic waste currently at the Landfill.
Process and Remove Scrap Steel
Contribution agreement has been received from the Government of North West Territories (GNWT) for $25k. This work will be tendered and take place in August.
Tire Shredding
Contribution agreement has been received from the Government of North West Territories (GNWT) for $25k. This work will be procured through a request for quotation in conjunction with Yellowknife and Fort Smith closing on Friday, August 1st, 2014. Page 7 of 17
Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
Lift Stations #1 & #2 Lift Station #1
Outstanding deficiencies are being addressed.
Lift Station #2
Lift Station #2 work has begun and will be completed by the end of October, 2014
• The July O&M report is as follows:
Item Level of Activity
Road Maintenance/Repairs Street sweeping
Grading
Gravel Application
Vehicle and Equipment Regular Maintenance Maintenance
Sewer Inspection/Repairs Operate Lift Stations
Twice Daily Inspections
Sewer flushing of mains
Water Inspection/Repairs Operate Water Treatment Plant
Service Connects/Disconnects As Required
Meter Reading
Weekly Sampling and Testing
Twice Daily Inspection of Facilities
Facilities Inspections/Repairs Maintenance as required
Misc 2 Funerals
Brushing
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Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
• Miscellaneous Updates:
o Office space being constructed throughout the month of July to accommodate public works employees displaced by mould and asbestos uncovered at Town Hall. COUNCIL POLICY / STRATEGY OR GOAL:
N/A
APPLICABLE LEGISLATION, BYLAWS, STUDIES, PLANS:
• Canadian Council of Ministers of the Environment (CCME) • Mackenzie Valley Land and Water Board (MV2009L3-0005) • Environment and Natural Resources Waste Management Guidelines • Alberta Environment. (2010). Standards for Landfills in Alberta. Government of Alberta. • EBA Engineering Consultants Ltd. (2010). Town of Hay River Solid Waste Management Facility, Operations Plan. Yellowknife, NT: EBA Engineering Consultants Ltd. • Guidance Document on Federal Interim Groundwater Quality Guidelines for Federal Contaminated Sites, May 2010 • Bylaw 619 Garbage Collection • Bylaw 1516 Collection of Tipping Fees • Bylaw 1574 Town of Hay River Purchasing Policy
FINANCIAL IMPLICATIONS:
N/A
ALTERNATIVES TO RECOMMENDATIONS:
N/A
ATTACHMENTS:
N/A
Prepared by: Reviewed by:
Dustin Dewar David Steele Civil Engineer Technician Senior Administration Officer
Date: July 31th, 2014 Date: July 31th, 2014
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Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
c) Development & Building Permit Report
RECOMMENDATION:
#14-264 MOVED BY: DEPUTY MAYOR JUNGKIND SECONDED BY: CLLR MAHER
THAT THE COUNCIL OF THE TOWN OF HAY RIVER accepts the Development and Building Permit Report for the month of July 2014. CARRIED BACKGROUND:
SUMMARY
• 13 Development Permits and 8 Building Permits have been approved for the month of July 2014, this compares to only 9 development permits from July 2013.
Background
• The July Development and Building Permit Report is as follows:
DATE DEV # CIVIC ADDRESS DESC. OF WORK July 2/14 D14-058, 47 Fir Crescent 16’X76’ Mobile Home B14-023 July 3/14 DH14-059 19-103rd. Street Artist Painter July 3/14 B14-024 12 Riverbend Road New Bathroom, Basement July 3/14 B14-026 4 Robin Crescent New Basement July 4/14 B14-027 4 Gaetz Drive Solar Panel Instalation July 8/14 D14-060, 24 Dean Drive Caretakers Mibile Home for Gilles B14-032 Mobile Engineering July 9/14 D14-061, 21 Ptarmigan New Garage and Deck B14-030 Crescent July 9/14 D14-062 15 Cranberry Chain Link Fence Crescent July 14/14 D14-063 4 Cambridge Place New Fence July 14/14 D14-064 40009 Mackenzie Footing Repairs on House, New Highway Garage July 16/14 D14-065, 88 Woodland Drive New Deck, Rear of House B14-028 July 16/14 D14-067 24 Dean Drive Gilles Mobile Engineering July 18/14 D14-068 47 McBryan Drive New Front Deck July 18/14 D14-069 3-61 Miron Drive Rear Fence July 23/14 D14-071 50-104th. Street Fence Property July23/14 D14-072, 11 Wright Crescent Remove Garage and build New B14-028 Garage
COUNCIL POLICY / STRATEGY OR GOAL:
N/A
Page 10 of 17
Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
APPLICABLE LEGISLATION, BYLAWS, STUDIES, PLANS:
N/A
CONSIDERATIONS OR FINANCIAL IMPLICATIONS:
N/A
ALTERNATIVES TO RECOMMENDATIONS:
N/A
ATTACHMENTS:
N/A
Prepared by: Reviewed by:
Randy Froese David Steele Development Officer Senior Administration Officer
Date: July 31st, 2014 Date: July 31st, 2014
d) SINED Application
RECOMMENDATION:
#14-265 MOVED BY: DEPUTY MAYOR JUNGKIND SECONDED BY: CLLR MAHER
THAT THE TOWN OF HAY RIVER submits a formal application to the Strategic Investments in Northern Economic Development (SINED) fund, requesting funds to finance a feasibility study to explore the Economic Development Strategy for the Town of Hay River, and if approved by them, enter into the required contribution agreement.
CARRIED BACKGROUND:
CanNor funding is potentially available to support the development of a SINED plan for the region or community in close proximity to current and emerging major projects or regional diversification.
The purpose of such a plan is to help prepare community/region stakeholders for opportunities that arise from major projects and/or regional diversification initiatives.
The main goals/objectives of an SINED Plan project include:
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Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
• Enhancing the foundation of information surrounding current and emerging economic opportunities in close proximity to a community/region; • Ensuring communities and businesses are well informed, well positioned and well prepared to maximize benefits from major projects and regional diversification initiatives; and • Introducing a sustainable, collaborative and meaningful approach to help businesses and communities maximize the benefits that are expected to arise as a result of the identified opportunities. Concurrently funding will be sought through GNWT’s ITI Department to help fund this initiative.
COUNCIL POLICY / STRATEGY OR GOAL:
N/A
APPLICABLE LEGISLATION, BYLAWS, STUDIES, PLANS:
N/A
FINANCIAL IMPLICATIONS:
N/A
ALTERNATIVES TO RECOMMENDATIONS:
N/A
ATTACHMENTS:
Guidelines: Expressions of Interest: 2 pages
Prepared by: Reviewed by:
Ian Frankton David Steele Recreation Director Senior Administrative Officer
Date: August 5th, 2014 Date: August 5th, 2014
11. NOTICES OF MOTIONS
There were no Notices of Motions for the Regular Meeting of Council, August 11th, 2014.
Page 12 of 17
Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
12. NEW BUSINESS
a) 2013 Draft Audited Financial Statements
RECOMMENDATION:
#14-267 MOVED BY: CLLR MAHER SECONDED BY: DEPUTY MAYOR JUNGKIND
THAT THE COUNCIL OF THE TOWN OF HAY RIVER approves the 2013 Audited Financial Statements as presented by Drew Queen of Ashton Chartered Accountants.
CARRIED BACKGROUND:
As required by Legislation/Policy
COUNCIL POLICY / STRATEGY OR GOAL:
N/A
APPLICABLE LEGISLATION, BYLAWS, STUDIES, PLANS:
N/A
FINANCIAL IMPLICATIONS:
N/A
ALTERNATIVES TO RECOMMENDATIONS:
N/A
ATTACHMENTS:
2013 Audited Financial Statements
Prepared by:
Harvey Harris Director of Finance & Administration
Date: August 8th, 2014
Page 13 of 17
Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
b) 2013 Capital Variance Report
RECOMMENDATION:
#14-268 MOVED BY: CLLR JAMESON SECONDED BY: CLLR MAHER
THAT THE COUNCIL OF THE TOWN OF HAY RIVER accepts the 2013 Capital Variance Report as Presented. CARRIED
c) 2014 Year to Date Financial Report
**For Information Only**
d) Appraisal of Old Town Fire Hall
**For Information Only**
e) Revision of Fire Prevention Bylaw
RECOMMENDATION:
#14-269 MOVED BY: CLLR DOHEY SECONDED BY: CLLR MCKAY
THAT THE COUNCIL OF THE TOWN OF HAY RIVER accepts Administration’s report on the Fire Prevention Bylaw as presented. CARRIED Let it be noted that Councillor Mapes was opposed BACKGROUND:
Administration has updated the Fire Prevention Bylaw to incorporate a component to cover Level of Service for the Hay River Fire Department.
The change to the Bylaw is required by the department so that it has the authority to provide services at a level acceptable to council. The levels of service on the Bylaw are what is presently being supplied by the Hay River Fire Department. Please see section 4.u and Schedule C.
The adoption of the level of service aids the Fire Department in not only setting Training Standards, Goals and Objectives for its membership but it will set the standard for what equipment the Department requires to do its job. The adoption of the Level of Services also fulfills one of the requirements for the Ground Ambulance Highway Rescue funding (presently $50,000.00 per year).
For example if we change from being a Structural Firefighting organization with Rescue to a Basic Firefighting organization with no Rescue the amount of training needed would decrease as would some of the needs for firefighting equipment. A change such as this would mean that on our arrival on scene there would be no inside attack to rescue casualties and we would be taking a defensive approach where all we would be concerned with is
Page 14 of 17
Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
exposures. This would also pretty much leave us in a position where the original building would burn to the ground while the exposures might be saved.
NOTE: We highly recommend against this change and are only using this as an example.
COUNCIL POLICY / STRATEGY OR GOAL:
N/A
APPLICABLE LEGISLATION, BYLAWS, STUDIES, PLANS:
Fire Prevention Bylaw
FINANCIAL IMPLICATIONS:
N/A
ALTERNATIVES TO RECOMMENDATIONS:
N/A
ATTACHMENTS:
N/A
Prepared by: Reviewed by:
Ross Potter David Steele Director of Protective Services/Fire Chief Senior Administrative Officer
Date: August 7th, 2014 Date: August 7th, 2014
13. BYLAWS
a) ByLaw No. 2230/FC/11 – Amendment to Fire Prevention ByLaw – First and Second Reading
#14-270 MOVED BY: CLLR MCKAY SECONDED BY: CLLR MAHER
That the Council of the Town of Hay River give First Reading to ByLaw No. 2330/FC/11 – Amendment to the Fire Prevention ByLaw CARRIED
Let it be noted that Councillor Mapes was opposed
Page 15 of 17
Town of Hay River August 11th, 2014 Regular Meeting of Council 7:00 pm
#14-271 MOVED BY: CLLR MCKAY SECONDED BY: CLLR MAHER
That the Council of the Town of Hay River give Second Reading to ByLaw No. 2330/FC/11 – Amendment to the Fire Prevention ByLaw
CARRIED Let it be noted that Councillor Mapes was opposed.
b) ByLaw No. 1812”S” – Amendment to Zoning & Building ByLaw – Removal of caretakers Unit from Discretionary Uses in M1 - First Reading
#14-272 MOVED BY: CLLR MCKAY SECONDED BY: CLLR MAHER
That the Council of the Town of Hay River give First Reading to ByLaw No. 1812”S” – Amendment to Zoning & Building ByLaw – Removal of caretakers Unit from Discretionary Uses in M1 CARRIED
Let it be noted that Councillor Mapes was opposed
c) ByLaw No. 1811”L” – Amendment to Towns General Plan ByLaw – Rezoning of lots B,C,D,E & F, Block H, Plan 0040 - First Reading
#14-273 MOVED BY: CLLR MAHER SECONDED BY: DEPUTY MAYOR JUNGKIND
That the Council of the Town of Hay River give First Reading to ByLaw No. 1811”L” – Amendment to Towns General Plan ByLaw – Rezoning of Lots B,C,D,E & F Block H, Plan 0040 CARRIED
d) ByLaw No. 2330 – Hay River Library Committee ByLaw – Third and Final Reading
#14-274 MOVED BY: CLLR JAMESON SECONDED BY: DEPUTY MAYOR JUNGKIND
That the Council of the Town of Hay River give Third and Final Reading to ByLaw No. 2330 – Hay River Library Committee ByLaw
CARRIED
Let it be noted that Councillor Mapes was opposed
Page 16 of 17
Research Licence Application (2014) Application 2755 Northern Spaces: Resource Governance in Southern Northwest Territories North Slave Region, South Slave Region
Researcher Information Principal Investigator Dr. Alice Cohen Acadia University 335 Huggins 12 University Ave Wolfville, NS B4P 2R6 Canada Phone: (902) 585-1126 Fax: (902) 585-1816 Email: [email protected] Primary Contact Information Same as Principal Investigator Research Supervisor Information Same as Principal Investigator Members of Research Team Alice Cohen (Researcher) Previous File Number (if available) N/A Dates of Research Dates of Research activity in the Northwest Territories From June 02, 2014 to June 15, 2014 Location Specific location(s) of data collection in the NWT Yellowknife; Fort Resolution Base camp location(s) Yellowknife (June 2-7); Fort Resolution (June 8-14) Funding Information Primary Funding Category Other Funding Sources Acadia University Project Description Objectives This application is for a two-week research trip that is the beginning of broader research program. The goals of this broader program are to a) highlight the specifically northern dimensions of resource governance in environmental geography and b) contribute to ongoing resource governance development in southern NWT, c) further geographic (and,
Page 1 of 3 Cohen(Application No 2755) specifically, scalar) scholarship on the political dimensions of ecosystem governance, d) understand and theorize the relationship(s) between ecosystem governance and political and scientific uncertainty. Rationale The overarching goal of the proposed work is to better understand the politics of ecosystem management in the Canadian North, and, in particular, the politics of ecosystem governance in Southern Northwest Territories. I am especially interested in environmental decision-making in light of uncertainty and complexity, and this area of NWT is experiencing (at least) two types of uncertainty.
The first is ecological, and relates to the environmental effects of intensifying resource extraction and development within and upstream from the study area – for example, ongoing energy development upstream in Alberta’s Athabasca oil sands. The second type is political: devolution and the absence of a comprehensive land claim agreement mean that the southeast NWT is very complex.
The research has the potential to contribute to better understandings of resource governance in Canada – particularly in areas experiencing increased resource extraction and development pressures. Methods I will be in Yellowknife from June 2-8 2014, and in Fort Resolution (Akaitcho Territory) from June 8-14 2014. I anticipate carrying out a total of approximately 15 interviews during that time. Interviewees will be identified through snowball sampling methods, facilitated by contacts I made during my December 2013 research trip. Interviewees will consist of government employees: In Yellowknife I will be interviewing NWT government employees, and in Fort Resolution I will be interviewing Akaitcho Territory Government (ATG) employees.
Potential interviewees will be contacted by email in May 2014. If they are amenable to participating, an interview will be set up at a time and location convenient for them. I expect that interviews will take place during normal work hours in participants’ offices. Interviews will be semi-structured, and will last approximately one hour. The interviews will be recorded, and will be transcribed by a research assistant in late June and early July. The assistant will be made aware of confidentiality issues. The purpose of the interviews is not to collect quantitative data; it is to give me a sense of the current legislative, political, and economic landscape as per the research questions identified above. As such, data analysis will consist of seeking trends across interviews. Travel Arrangements I will fly to Yellowknife on June 2, and will leave on June 15. On June 7 or 8, I will drive from Yellowknife to Fort Resolution, and on June 14 I drive from Fort Resolution to Yellowknife. Community How will you communicate the results of this study to individuals and communities in the NWT? Any publications (academic or otherwise) arising from the research will be shared with those participating in the interviews, and I anticipate ongoing contact with individuals interested in ongoing collaboration.
As the project advances in future years, I anticipate co-hosting workshops, giving community presentations, and establishing a project website. What are the possible opportunities for local involvement? This application is for a short research trip that aims to lay the foundation for future work. As a result, local involvement at this stage is limited to meetings and interviews that will allow me to better understand the environmental governance 'landscape' in the Territory and to identify local research priorities. As the project progresses, I anticipate that opportunities for local involvement will include hosting workshops, participatory mapping, and data collection. Ethics Will you be interviewing or surveying NWT residents? YES What organization conducted (or will be conducting) the Ethics review for this research? Acadia University How will you maintain participant confidentiality in your research? All interview transcripts will be identified by number only. All identifying information will be removed from publications arising from the research. The research assistant will be briefed on confidentiality issues before transcription begins. Transcription will begin no less than two weeks after interviews have taken place so that participants wishing to withdraw their interviews will have time to do so. How will the data be stored over the short and long terms?
Page 2 of 3 Cohen(Application No 2755)
Anonymous, numbered transcripts will be stored on a password-protected computer.
Transcript analysis will be carried out using 'Dedoose' (qualitative data analysis software). Data stored on Dedoose is secure: the platform uses the highest available levels of encryption for data transmission and storage, and access is password protected. Dedoose stores data on the Microsoft Azure Cloud Network, which means that there is no one, single server, but rather a network of servers worldwide. For details on Dedoose security, please see http://www.dedoose.com/terms/#SECURITY; for details on Microsoft Azure Cloud security, please see http://azure.microsoft.com/en-us/support/trust-center/security/. Potential Impacts of the Research Anticipated Impacts There are no environmental impacts associated with this study.
The anticipated social impacts are minimal: interview questions will not expose subjects to any greater risk or distress than they would experience in their everyday lives. They are being selected for the project on the basis of their expertise and familiarity with the subject. Mitigation of Impacts In the event that in interview subject is distressed by the interview, they may withdraw their interview data up to two weeks after their interview. The consent form includes contact information for the Chair of the Acadia Research Ethics Board, and interviewees may contact the Chair if they have any questions or concerns about the study. Interviewees will also have contact information for the researcher. Emergency Information Emergency Response Capabilities This is a low-risk study. The researcher will travel with a working cell phone, and will develop a travel management plan - including regularly scheduled check-ins - with university colleagues. Distribution Akaitcho Territory Government ARI - South Slave Research Centre Aurora College - Yellowknife/North Slave Campus City of Yellowknife Deninu Kue First Nation Fort Resolution Settlement Corporation/Deninoo Community Council North Slave Métis Alliance Northwest Territory Métis Nation Wek’èezhìi Renewable Resources Board Yellowknives Dene First Nation
Page 3 of 3 Cohen(Application No 2755) APPRAISAL OF AN INDUSTRIAL PROPERTY
AT:
1 104 STREET HAY RIVER, NT
FOR:
THE TOWN OF HAY RIVER
BY:
Stewart, Weir, MacDonald Ltd. Gardiner McCarthy, B. Comm. Lauchlin R. MacDonald, AACI, P. App.
July 20, 2014
File No.: 31811 PHOTOGRAPHS Real E~t a t c Apprai~al and Propcny Assc;,;,ment Service\ STEWART, WEIR, MacDONALD Ltd. 5004. 50th A\enue P.O. Box 1597 Yello\\knife.I\'T XIA 2P2 Tel: (867) 920-4888 August 6, 2014 Fax:(867)873-5324
Mr. David Steele Senior Administrative Officer Town of Hay River 73 Woodland Drive Hay River, NT XOE 1 G1
Dear Mr. Steele:
RE: Appraisal of 1 104 Street, Known as the Vale Island Fire Hall Legally Described as Lot 1, Block M, Plan 123 Town of Hay River, Northwest Territories
In accordance with your request for an appraisal of the property described above, the following report has been prepared.
It should be noted that this report has been prepared at the request of Mr. David Steele, to establish a market value for potential disposal. The report is not intended for use by any other party, and any liability in this regard is strictly denied.
The subject property, as (legally) described above, consists of a single C2 - Highway/Service Commercial Zone lot which provides a total site area of ±15,000 square feet. The lot has been improved with a 2,080 square foot shop. The subject property was once used as the Vale Island Fire Hall but has not been active as such in some time and has become, more or less, surplus. The property would be suitable in private hands as a shop and provides good industrial utility.
The property rights appraised are those of the owner's interest in the fee simple estate as though unencumbered. The subject property was inspected on July 20, 2014, and the effective date of this report is July 20, 2014.
This appraisal report has been prepared in accordance with accepted professional standards. The report describes the method of approach leading to the final estimate of market value, and contains data gathered in my investigation which, to the best of my knowledge is correct, subject to the Contingent and Limiting Conditions herein set out.
The value estimate provided in this report is based on the assumption that the subject site is free of contaminants which could adversely affect the market value, as it is not within our area of expertise to comment on environmentally-impacted soil. It should also be noted that any structural components that were not exposed or readily accessible were not inspected unless otherwise noted. It is assumed that the subject site is free of contaminants and that the existing structural components are in acceptable condition, thereby not adversely affecting the market value .
.. .12
lqa lui t Office: Building 987A, Iqaluit, Nuna vut XOA OliO • Td : (867) 979-6866 email: swm 0lnonh wc:.tcl.nct Mr. David Steele Senior Administrative Officer Town of Hay River August 6, 2014 Page Two
I have personally inspected the property and analyzed all available information considered pertinent to its valuation. Based on this inspection and analysis, it is my professional opinion that the subject property has an estimated market value as at July 20, 2014, of TWO HUNDRED TEN THOUSAND ($210,000) DOLLARS.
The data, analysis and conclusions upon wh ich this value estimate is based, are contained in the following report to which your attention is directed.
Respectfully submitted,
STEWART, WEIR, MacDONALD L TO .
Gardiner McCarthy Real Estate Appraiser
Lauchlin MacDonald, AACI, P. App. Review Appraiser
GM/ps
* STEWART, WEIR , MacDONALD Ltd. TABLE OF CONTENTS
SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS...... 1 DEFINITION OF APPRAISAL PROBLEM...... 2 ASSUMPTIONS AND LIMITING CONDITIONS...... 4 SCOPE...... 6 AREA AND TOWN ANALYSIS...... 7 NEIGHBOURHOOD ANALYSIS...... 12 LAND DESCRIPTION AND ANALYSIS...... 13 DESCRIPTION OF IMPROVEMENTS...... 15 ASSESSMENT AND TAXES...... 17 ZONING OR LAND USE CLASSIFICATION...... 18 HIGHEST AND BEST USE ANALYSIS...... 22 PREAMBLE TO THREE APPROACHES TO VALUE...... 26 COST APPROACH TO VALUE...... 27 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE...... 28 COST APPROACH TO VALUE - COST ANALYSIS...... 39 COST APPROACH TO VALUE - COST ANALYSIS - MARSHALL VALUATION SERVICE MANUAL...... 42 COST APPROACH TO VALUE - DEPRECIATION ANALYSIS...... 43 SUMMARY OF COST APPROACH TO VALUE...... 46 DIRECT COMPARISON APPROACH...... 47 INCOME APPROACH TO VALUE...... 48 INCOME APPROACH TO VALUE - INCOME AND EXPENSE ANALYSIS...... 50 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS...... 53 SUMMARY OF INCOME APPROACH TO VALUE...... 61 RECONCILIATION OF VALUE INDICATIONS...... 63 FINAL ESTIMATE OF VALUE...... 64 CERTIFICATE OF APPRAISER...... 66 ADDENDA SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS
TYPE OF PROPERTY: Industrial Property
ADDRESS OF PROPERTY: 1 104 Street Hay River, NT
LEGAL DESCRIPTION: Lot 1, Block M, Plan 123
EFFECTIVE DATE OF APPRAISAL: July 20, 2014
SIZE OF LAND: 15,000 Square Feet
SIZE OF BUILDING: Shop 2,080 Square Feet
ASSESSMENT: Land $ 29,700 Improvements 82,100 Total $111,800
2014 TAXES: $2,355.63
ZONING: C2 - Highway/Service Commercial
HIGHEST AND BEST USE (as if vacant): An industrial development in keeping with the current Zoning Bylaw
HIGHEST AND BEST USE (as improved): Continuation of the existing industrial development
ESTIMATE OF LAND VALUE (as if vacant): $37,500
ESTIMATE OF VALUE BY COST APPROACH: $195,000
ESTIMATE OF VALUE BY DIRECT COMPARISON APPROACH: N/A
ESTIMATE OF VALUE BY INCOME APPROACH: $210,000
FINAL ESTIMATE OF VALUE: $210,000
1 DEFINITION OF APPRAISAL PROBLEM
Purpose and Function
The purpose of this appraisal report is to estimate the current market value of an industrial property located in Hay River, Northwest Territories. The intended use of this report is to establish a market value for potential disposal of the property.
Legal Description
The subject site is legally described as Lot 1, Block M, Plan 123, Town of Hay River, Northwest Territories.
Property Rights Appraised
The property rights appraised are those of the owner's interest in the fee simple estate.
Certificate of Title
The subject parcel is registered in the Land Titles Office, Yellowknife, to The Municipal Corporation of the Town of Hay River as per Certificate of Title #15732 dated November 2, 1983. A photocopy of the Certificate of Title may be found in the Addenda.
Encumbrances
The subject properties are appraised as free of encumbrances. There are no documents registered against the title.
Sales History
Uniform Standards of Professional Appraisal Practice require investigation and analysis of transactions involving the subject property within three years prior to the effective date of appraisal. The subject property has not been sold or been listed for sale in the last three years.
Effective Date
The effective date to which this value estimate applies is July 20, 2014.
2 DEFINITION OF APPRAISAL PROBLEM, (Continued)
Market Value
For the purpose of this appraisal report, market value is defined by the Canadian Uniform Standards as follows:
The most probable price which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
Implicit in this definition is the consummation of a sale as of the specified date and the passing of title from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in Canadian dollars or in terms of financial arrangements comparable thereto;
5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
3 ASSUMPTIONS AND LIMITING CONDITIONS
1. By this notice, all persons reviewing, utilizing or relying on this report, in any manner, bind themselves to accept all limiting conditions and assumptions as outlined or as stated within the body of the report. Do not use this report if you do not so accept. These conditions are a part of the appraisal report, they are a preface to any certification, definition, fact or analysis, and are intended to establish as a matter of record that the appraiser's purpose and intended use are to provide a market value estimation for the subject property based upon the observed conditions of said property and the, then prevailing real estate market. This appraisal report is not an engineering, construction, legal or architectural study nor a survey and expertise in these areas, among others, is not implied.
2. It should be noted that this report has been prepared at the request of Mr. David Steele on behalf of The Town of Hay River, to establish a value for potential disposal. It is not intended for use by any other party, and any liability in this regard is strictly denied.
3. Because market conditions, including economic, social and political factors change rapidly and, on occasion, without warning, the market value estimate expressed as of the date of this appraisal cannot be relied upon as of any other date except with further advice from the appraiser in writing.
4. Information, estimates, and opinions that have been expressed in the appraisal report are obtained from sources considered to be reliable and they are believed to be true and correct. No responsibility is assumed for the accuracy of such items that were furnished by other parties.
5. No responsibility is assumed for matters of a legal nature that affect either the property being appraised or the title to it. It has been assumed that the title is good and marketable and, therefore, no opinion is rendered about the title. This property is appraised as if free and clear of any or all liens or encumbrances, unless otherwise identified.
6. It is assumed that the property is in full compliance with all applicable federal, territorial and local environmental regulations and laws, and zoning and land use regulations and restrictions unless the lack of compliance is stated, described and considered in this report.
7. Competent and reasonable management of the property is assumed.
8. All engineering studies are assumed to be correct. The plot plans, sketches and illustrative material in this report are included only to help the reader in visualizing the property and understanding the appraiser’s interpretation as to its size.
4 ASSUMPTIONS AND LIMITING CONDITIONS, (Continued)
9. The values contained in this report between land and improvements apply only under the program of utilization at the effective date of valuation. The separate valuation of the land or building must not be used with any other appraisal and are invalid if so used.
10. This report is completed on the basis that testimony or appearance in court is not required as a result of this appraisal unless specific arrangements to do so have been made beforehand.
11. Unless otherwise stated in the appraisal report, there are no known unapparent or hidden conditions of the property (including but not limited to its soils, physical structure, mechanical and other operating system, its foundation, etc.) or adverse environmental conditions (on it or a neighbouring property, including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable. It has been assumed that there are no such conditions unless they were observed at the time of inspection or became apparent during the normal research involved in completing the appraisal. The attached report should not be construed as an environmental audit or a detailed property condition report, as such reporting is beyond the scope of this report and the qualifications of the appraiser. The appraiser takes no responsibility whatsoever for the findings of said assessment. Responsibility is not accepted for any such unapparent or hidden conditions that do exist, or for any research, testing or engineering that might be required to discover whether such conditions exist.
12. It is imperative that the reader or any other interested party be aware that the appraiser did not inspect the premises for fire detection or smoke detection systems, or for the presence of carbon monoxide detectors, nor did the appraiser inspect the condition of such equipment, if present. The appraiser takes no responsibility whatsoever for the lack of, or condition of, detection devices that may be located on the premises, nor does the appraiser warrant compliance in any manner of such equipment, if present.
13. A variety of other assumptions may be required in the valuation process, specifically overall capitalization rates, gross income multipliers, vacancy rates, and costing procedures. These are made throughout the report where and if necessary and deemed appropriate.
14. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it, in whole or part, be used by anyone but the client/addressee without the prior written consent of the appraiser.
5 SCOPE
The data contained herein was collected, confirmed and reported by the appraiser. Sources of the data utilized in the report include the following:
1. Detailed on-site physical inspection of the subject property, plus information provided by the owner.
2. Inspection of subject neighbourhood, comparable land sales, and comparable improved property sales.
3. Conversations with officials in various departments at the Town of Hay River regarding zoning and land use controls, building regulations, utility services, property assessment and tax levies, regional and neighbourhood trends.
4. Canada Mortgage and Housing Corporation with respect to regional publications on market rents, vacancy rates, market trends, commercial building starts, commercial resale market, the local economy in general, and inspection procedures.
5. Conversations with the property owner and employees of the property owner.
6. Conversations with real estate sales agents and property management personnel with reference to current market rents and trends.
7. Yellowknife Land Titles Office regarding real property title searches, information on vacant land and improved property sales, including transfer and mortgage documents.
8. Local contractors concerning building and site improvement costs, current trends and economic expectations. Local service providers with regard to local service costs, current and expected trends in service costs.
9. Marshall & Swift - Marshall Valuation Service Manual - manual costing service in support of the cost estimate of the building.
6 AREA AND TOWN ANALYSIS
The Town of Hay River is located on the south shore of Great Slave Lake at the mouth of the Hay River. The community is situated on both the mainland and Vale Island, in the Hay River Delta. The Town is 1,130 km north of Edmonton and 494 km south of Yellowknife.
Hay River is situated in the homeland of the Slavey people. The original site of Hay River is where the Dene Village, located on the eastern bank of the Hay River, now stands. The Slavey way of life is believed to have been very similar to that of the Long Spear people who moved into the area from the western plains about 7,000 years ago, and they were not considered a distinct tribe until after the coming of the Europeans. These Dene people lived a nomadic life throughout this whole area.
In 1806 the Northwest Company built a trading post on the Hay River, but considerably to the south, near Meander River (Alberta). The Hudson Bay Company made attempts, in 1816 and 1845 to open posts at Hay River, but it was 1868 before the first permanent building - a Hudson Bay Company post on the east bank of the river - was constructed. At the same time the Oblate missionaries built a small log church and house near the present day Church of Ste. Anne. Both the trading post and the church closed down in 1875. Trading companies and independent fur traders moved in and out of Hay River in the early 1800s; their movements being dictated by the supply and price of fur.
It was the Slavey Dene who established Hay River as a permanent settlement when Chief Chatla had some log cabins built and brought in cattle from Fort Providence in 1892. The Chief's efforts to acquire the services of a priest resulted in the Anglican Bishop sending one in 1893. A few years later, a Roman Catholic Mission was established.
In 1900 the Hay River Dene travelled to Fort Resolution to ask to be included under Treaty No. 8. A small mission was established and by 1909 St. Peter's church had been built and a residential school for the Diocese of Mackenzie River had been established. It was a busy, self- contained community with a three-storey school, warehouses, barns, boat yards and 7-8 acres of vegetables and field crops.
Hay River remained a traditional hunting and trapping settlement, mission station, trading post and a minor stopover point for those travelling the Mackenzie River system. The R.C.M.P. opened a detachment in 1925 (closed in 1933 and reopened in 1947) and the community grew to include a hospital.
In 1939 some settlement started on Vale Island and the First "Cat Train" (tractors hauling sleds) reached Hay River from Grimshaw, Alberta on their way to the gold mines at Yellowknife. This trail was used throughout World War II and opened up the commercial fishing potential of the Lake to the markets of New York and Chicago. Hay River became the centre of the Great Slave Lake commercial fishery, and a small settlement was laid out especially for fishing interests near the mouth of the West Channel, on Vale Island.
7 AREA AND TOWN ANALYSIS, (Continued)
In 1942 the U.S. Corp of Engineers built an airstrip on Vale Island as part of the Canol Project; and with the building of the Mackenzie Highway from Hay River to Grimshaw, Alberta in 1948, a new town site was laid out on Vale Island. The opening of the Mackenzie Highway and the airport resulted in the community becoming an important transportation/communication centre. Streets, houses, schools, churches and businesses slowly grew in numbers along the waterfront and criss- crossed the Northeast corner of the island. Shipping companies began to use Hay River as their base for supplying northern communities.
During the 1960s road, air and communications improved with the completion of the Great Slave Railway between Hay River and Peace River. Hay River's role as the "Hub of the North" linking southern Canada with the whole of the Mackenzie District and the Western Arctic was greatly strengthened.
In both 1951 and 1963, severe flooding occurred on Vale Island during the spring breakup, requiring the evacuation of virtually the entire population. After the destruction of much of the waterfront properties in 1963, the residential section and downtown core were relocated to the modern town site you now see. Since then development has tended to concentrate on this mainland site.
During the 1960s and early 1970s, Hay River underwent something of an economic "boom" with oil and gas exploration activity and the anticipated construction of a Mackenzie Valley Pipeline. Activity in the area declined after 1975, when it became apparent that the pipeline would not be built.
In 1974 the Dene people requested the creation of a reserve in an effort to protect their traditional lifestyles and lands. This 1,818 hectare reserve is located in the heart of the traditional Slavey lands, on the east channel of the Hay River at its intersection with Great Slave Lake. Today's Dene Village is located approximately 3.2 km south of the original village and fish encampment. This is the only reserve in the Northwest Territories.
Today, Hay River remains a mainly private enterprise based economy with a well developed and organized downtown core retail/service area, while Vale Island is an industrial/transportation area with some residences remaining. Northern Transportation Company Limited (NTCL) operates from there with some of the most modern shipping and freight handling equipment in North America.
In 1991, the boundaries of the Town were expanded southwards to take in the area known as the "Corridor". This area encompasses the strip of land between the Hay River and the CNR rail line, running south towards Enterprise. The area contains the "country-style" or acreage type of subdivision (Delancey Estates) and the market gardening area of Paradise Garden.
8 AREA AND TOWN ANALYSIS, (Continued)
The Economy
Hay River is one of only six communities in the Northwest Territories that can be said to have viable private sectors. Less than 17% of the labour force is employed by Government, versus an average of over 23% for the whole of the Northwest Territories.
A breakdown of occupations, based on the 2011 Census which indicates a labour force of 2,140 persons is summarized below.
Agriculture and other resource based industries 1.17% Construction 8.64% Manufacturing 1.64% Wholesale and Retail Trade 19.39% Finance and Real Estate 3.74% Health Care & Social Services 11.45% Educational Services 6.07% Transportation and Warehousing 5.84% Mining, Quarrying, Oil & Gas Extraction 4.91% Public Administration 16.82% Other Services 20.33%
Population
The historical figures for the population within the Town of Hay River area are detailed in the graph below.
9 AREA AND TOWN ANALYSIS, (Continued)
Historical Developments
In 1992, the Government of the Northwest Territories made a commitment to increase services outwards of Yellowknife, throughout the regions. In the two years following, approximately 40 new jobs were created in Hay River, throughout the various government departments, including the Public Utilities Board, Liquor Board, Transportation, Public Works, and Economic Development and Tourism. A Drug and Alcohol Treatment Centre was also established on the nearby Hay River Reserve, creating further employment. The Territorial Government elected in 1994 inherited serious fiscal problems. The ever growing deficit, and a decrease in Federal funding, created a situation within cabinet that had to be addressed immediately. Government cut-backs in both capital spending and positions affected every community and region in the NWT, including Hay River. Today, there are approximately 30 fewer Government positions.
Hay River is a community that has traditionally been quite dependent on the transportation industry. It has always laid claim to being the “Hub of the North”, and while the Northern Transportation Company Limited (NTCL) maintained its base of operations there, it was not an idle boast. Their economy has, however, over the years diversified somewhat. Three local employers in particular - Kingland Ford Sales Ltd. (a manufacturing and auto dealership company), Wesclean Northern Sales Ltd. (a janitorial supply, flooring and paint company) and MSS Ltd. (a medical and safety supply company) have grown from small local operations into businesses that dominate their markets throughout the North. Hay River has a progressive business attitude, and has, on a per capita basis, the largest private sector economy in the Northwest Territories, outside of Yellowknife.
Recent Developments
More recently, four issues, critical to the economic future of Hay River have been in the news. They are summarized below.
A. Tamerlane Ventures Inc.
Tamerlane is an exploration and development mining company with advanced base metal development projects in Canada and Peru. The company is working toward bringing the world-class lead-zinc Pine Point property back into production. This is the company’s primary focus. Pine Point was the largest and most profitable metal mine in Canadian history. Tamerlane controls this project plus a contiguous property to the west originally explored by Westmin Resources.
Tamerlane recently announced its updated NI 43-101 Reserve Report for the Pine Point project. The current mineral inventory for the project is as follows:
Proven & Probable Reserves 24.5 million tonnes Measured & Indicated Resources 6.4 million tonnes
10 AREA AND TOWN ANALYSIS, (Continued)
Although the above would seem positive, it has been a number of years since Tamerlane became interested in reviving the Pine Point project and there is no indication of it moving forward any time in the near future.
B. Avalon Minerals Ltd.
Avalon Minerals Ltd. is a global mining company who are also involved with Pine Point. Avalon has a proposal to see a hydrometallurgical plant developed at the Pine Point site to process the rare earth metals extracted from the company’s Thor Lake deposit 100 km southeast of Yellowknife. The project would also include a “separation” plant - the only one outside of China. The estimated employment at the mine would be around 185, with another 90 employed at the plant. Reportedly, although most of the rare earth elements come from China, they are cutting back by 80%, which provides an excellent opportunity for Avalon. As with Tamerlane, moving a project like this along from proposal to production is a long and drawn out process with many hurdles.
C. Northern Transportation Company Limited
NTCL has an extensive history in Hay River. Competition from other sources and their own internal decision to provide service from a southern route based in Richmond BC have affected their local operations to a significant degree in recent years. Originally, the Hay River-MacKenzie route handled 100% of NTCL’s revenue. Today, that has declined to 16%. In February 2010, NTCL cut eight local administrative positions, and relocated them to Edmonton. More recently, some jobs with the company have been converted to seasonal positions.
Conclusions
NTCL operations have obviously had a significant impact on the local economy. Any optimism that the Tamerlane and Avalon proposals may have generated would seem to have fizzled out. Investment in local real estate, clearly, has been affected.
11 NEIGHBOURHOOD ANALYSIS
The subject is located on Vale Island, in “Old Town”. This area comprises that land on which the town was originally developed. Access to the water was a critical criteria for land selection in the early years of the community. The expansion into “new town” and the modern development that went with it, relegates Vale Island to second choice for residential development. The transportation sector, particularly NTCL, remained as the primary occupant and user. The commercial/industrial sector has remained stable, and largely dependent on NTCL. The subject property is located in an area of transportation related commercial and industrial properties. The area is serviced with piped water and trucked sewer, garbage pick-up, police and fire protection, electricity, telephone and cable. Heating fuel is delivered by truck.
12 LAND DESCRIPTION AND ANALYSIS
Dimensions, Shape and Area
The subject property consists of a single rectangular shaped corner lot providing 150 feet of frontage to 102 Avenue and 100 feet of frontage to 104 Street. The parcel provides a total of 15,000 square feet of space. A partial plot plan has been reproduced below. It is noted that the partial plot plan below is measured in chains. One chain is equal to 66'.
Topography and Drainage
The subject site is relatively level with the roadway and has been filled and levelled. Drainage appears to be adequate.
13 LAND DESCRIPTION AND ANALYSIS, (Continued)
Services
The subject site is serviced with piped water and trucked sewage. Hydro, telephone and cable television services are above ground. Other services to the site include garbage collection, police (RCMP), and fire protection. There is no public transportation system.
Rights of Way and Easements
There were no easements registered against the property.
Street Improvements
104 Street is paved and 102 Avenue is gravel. No curbs or sidewalks have been developed. There is street lighting nearby maintained by Northwest Territories Power Corporation. Street parking is permitted, although does not appear to be the norm. Traffic volume is low to moderate at any given time during the day.
External Obsolescence
There are no negative adjacent uses.
Environmental Issues
It should be noted that it is not within the appraiser’s realm of expertise to comment on environmentally-impacted soil. This appraisal assumes that the site is free of contaminants which would negatively affect the market value of the subject property.
Summary
There is nothing distinguishing the subject lot from other lots in the area with the exception of the C2 - Highway/Service Commercial zoning and corner location. The site is similar in terms of size, soil content, amenities, street improvements, and required municipal services. The area has proven market acceptance, and the subject is a suitable part of that market.
14 DESCRIPTION OF IMPROVEMENTS
Construction and Finish Details
The subject parcel is improved with a 2,080 square foot industrial shop. The building was at one point operated as the Vale Island Fire Hall. However, it has not been operated as such in some time and provides good industrial utility to potential purchasers. The improvement details for the property are based on a physical inspection of the property. It is assumed that the building construction was in conformance with existing standards in place at the time of construction.
Foundation Concrete perimeter foundation.
Floor Reinforced concrete slab (5").
Walls Galvanized metal siding on steel frame.
Roof Galvanized metal panels on steel purlins on steel frame.
Mechanical/Electrical 200 amp main electrical service for the shop; Weil-McLain boiler, oil- fired, providing heat via infloor heat; water holding tank. There is one two-piece washroom..
Millwork Three 12' overhead doors, one metal pedestrian door.
Effective Age
The subject shop was constructed in 1970. Therefore, the improvement has a chronological age of 44 years. Chronological age, also known as actual age or historical age, is simply the number of years that have elapsed since building construction was completed. The effective age of an improvement, however, is the age indicated by the condition and utility of the improvement. Effective age differs from actual age in that effective age considers depreciation and an interpretation of market conditions by the appraiser. Actual age considers only time; effective age considers all types of depreciation - physical wear and tear, and any loss in value due to functional and external considerations. This is not to say that actual age and effective age are always different. With typical maintenance, an improvement’s actual age may be the same as its effective age.
The improvement appears to be in average to good condition and provides average utility for the intended use. The subject property would appear to have been well maintained since construction. On this basis, effective age of the improvement is estimated at 30 years.
15 DESCRIPTION OF IMPROVEMENTS, (Continued)
Remaining Economic Life
Economic life is defined as the period over which improvements to real property contribute value to the property. Economic life often differs from physical life, which is the estimated time period the improvement can be expected to physically exist. Remaining economic life is the difference between the economic life of the improvements and their effective age. The best method of determining the economic life of an improvement would be analyzing demolition permits for similar buildings. There have been no demolitions of industrial improvements in the subject neighbourhood, with the oldest buildings being constructed in the mid 1970s.
As there have been no useful examples of improvements similar to those comprising the subject property, the opinion of economic life has been developed based on discussions with contractors specializing in renovations and industrial property owners in the various northern markets. This estimate is supported by the estimate in the Marshall & Swift Valuation Service Manual.
On this basis, the economic life for the subject improvement is estimated at 60 years, resulting in an estimated remaining economic life of 30 years.
16 ASSESSMENT AND TAXES
Assessment of the Town of Hay River for taxation purposes is the responsibility of the Government of the Northwest Territories, Department of Municipal and Community Affairs. The last general land assessment occurred in 2009, for 2010 (and subsequent years) taxation.
The land assessment is meant to be indicative of market value as at base year 2007. The improvement assessment is 66% of the depreciated replacement cost, base year 2008. The replacement cost is derived from a Province of Alberta Assessment Cost Manual which uses the City of Edmonton as a base. Costs in Hay River are considerably higher however. The subject property is assessed as follows:
Land $ 29,700 Improvement 82,100 Total $111,800
The assessment roll indicates similar values for similar parcels and it would appear that the improvement value as it relates to other properties, is fair and equitable.
The taxes are based on the 2014 industrial mill rate for the Town of Hay River, set at 18.62 mills with an additional 2.45 mills for school tax for a total of 21.07 mills. The 2014 taxes are calculated as follows:
$111,800 x 21.07 = $2,355.63 1000
Although currently taxed as an institutional property, we are assuming that the property will be sold to a private entity and the most probably use of the subject is as an industrial use.
17 ZONING OR LAND USE CLASSIFICATION
The subject property is zoned C2 - Highway/Service Commercial as per the Town of Hay River Zoning By-Law #1812, which received its third reading on May 5, 2003. The permitted uses and regulations pertaining to this zoning classification are detailed below.
6.10 C2 - HIGHWAY/SERVICE COMMERCIAL
1) General Purpose
To provide a zone for highway and service oriented commercial uses which are more appropriately located here than in any other commercial or industrial zone.
2) Permitted Uses
a) Car washes;
b) Eating and drinking establishments;
c) Drive-in restaurants and businesses;
d) Hotel/motel;
e) Service station/gas bar
f) Convenience retail stores
g) Automobile, vehicle, farm equipment, mobile home and recreational equipment sales and service;
h) Veterinary clinics and kennels;
i) Hardware/building supply sales and storage.
3) Discretionary Uses
a) Tourist related industry dependant on close proximity to a highway for trade;
b) Retail stores;
c) Public and semi-public uses;
d) Wholesale and retail of the following: i) plumbing or heating equipment and supplies; ii) general machinery; iii) manufactured homes and trailers;
18 ZONING OR LAND USE CLASSIFICATION, (Continued)
e) Local utility services;
f) Caretaker units;
g) Those uses which, in the opinion of the Development Officer are similar to the permitted or discretionary uses, and which conform to the general purpose and intent of this zone;
h) Buildings and uses accessory to the above.
4) Development Regulations
Lot Dimensions:
a) Minimum Lot Width
i) highway oriented hotels, motels and motor hotels: not less than 46.0 m (152.0) ft.; ii) all other highway oriented uses; not less than 30.0 m (99 ft.); iii) non-highway oriented hotels, motels and motor hotels; not less than 30.0 m (99 ft.); iv) all other non-highway oriented uses; not less than 7.5 m (25.0 ft.).
b) Minimum Lot Depth
i) shall be consistent with the minimum lot width and minimum lot area.
c) Minimum Lot Area
i) highway oriented hotels, motels and motor hotels; not less than 1300 m² (13988 sq.ft.); ii) all other highway oriented uses; not less than 1162 m² (12503 sq.ft.); iii) non-highway oriented hotels, motels and motor hotels; not less than 1115 m² (11997) sq.ft.); iv) all other non-highway oriented uses; not less than 550 m² (5918 sq.ft.).
Building Dimensions
d) Lot Coverage
i) the maximum lot coverage shall not exceed 60% of the total lot area.
19 ZONING OR LAND USE CLASSIFICATION, (Continued)
Yard Requirements
e) Minimum Front Yard
i) highway oriented hotels, motels and motor hotels; not less than 15.0 m (49.5 ft.); ii) all other highway oriented uses; not less than 10.0 m (33.0 ft.); iii) all non-highway oriented uses; 6.0 m (20.0 ft.); iv) front yard setbacks must comply with Section 4.4 of this bylaw.
f) Minimum Rear Yard
i) not less than 3.0 m (10.0 ft.).
g) Minimum Side Yard
i) not less than 3.0 m (10.0 ft.); ii) side yard setbacks must comply with Section 4.4 of this bylaw.
Height
h) The maximum height shall not exceed 13.0 m (43.0 ft.).
Performance Standards and Regulations
i) Prior to issuance of a building permit, a site plan indicating location of buildings, landscaping, parking, accesses and driveways proposed lighting and signs, and any fence or screening shall be approved by the Development Officer. The access from the premises to the highway or major streets shall be allowed only at the points as established by the Development Officer. The building setbacks shall allow for the planned widening of streets and/or provision of service roads where required by Council. The building setbacks shall provide for the front yards as established by these regulations in addition to set backs needed for the aforementioned widening.
j) Where development fronts on a designated highway pursuant to the Public Highways Act a service roadway of not less than 15 m (50 ft.) in width shall be required adjacent and parallel to the highway. Council may require a service road of not less than 15 m (50 ft.) in width on all highways within the Town.
k) All buildings shall be of good architectural design as required by Council, so as not to interfere with or detract from the standards of the zone and the amenities of the neighbourhood.
20 ZONING OR LAND USE CLASSIFICATION, (Continued)
l) All yards abutting the highway or roadway shall be landscaped and the entire lot and all buildings maintained in a neat, tidy manner including the trimming and upkeep of areas and the removal of debris and unsightly objects.
m) All storage, freightage or trucking yards shall be enclosed or completely screened by buildings, trees, landscaped features, or fences or a combination thereof.
n) All outdoor storage areas shall be enclosed with a suitable fence and the outdoor storage and display of equipment, machinery, building materials, lumber or other materials shall be kept in a clean and orderly condition at all times.
5) Development Regulations for Discretionary Uses
a) Caretaker Units - Section 5.9
b) Local Utility Services - Sections 4.6 & 4.7
c) Accessory Uses and Buildings - Section 5.11
6) Other Provisions
a) General Regulations - Section 4
b) Specific Land Use Regulations - Section 5
c) Parking and Loading Regulations - Section 7
d) Sign Regulations - Section 8
The current development is considered to be in conformance with the zoning regulations as it currently provides a public use. There are many potential uses upon disposal that the subject property could fulfill under the current C2 zoning classification.
21 HIGHEST AND BEST USE ANALYSIS
Theory and Principle of Highest and Best Use
The term “highest and best use” is defined in The Appraisal of Real Estate, Second Canadian Edition, Appraisal Institute of Canada and Appraisal Institute, 2002, as:
“The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value.”
There are many uses to which a site may be put. However, there is usually only one that is best in terms of generating net return in dollars or amenities. Some properties may have improvements nearing an end to their economic usefulness and site redevelopment is eminently justified to maximize return on investment. Other properties may have newer improvements with good investment returns so redevelopment is not justifiable. If a valuation is based on an analysis of an inferior use, the property value estimate will not reflect the market potential of the site. Consequently, the analysis to determine the highest and best use of the subject site is one of the most important components of the appraisal process.
The development of a highest and best use analysis requires the consideration of four implicit criteria. The highest and best use of both the land as though vacant and the property as improved must be: 1. Physically possible; 2. Legally permissible; 3. Financially feasible; and 4. Maximally productive.
Physically Possible Use
The first test a use must withstand is that of physical possibility. Factors such as shape and size of the site, soil bearing capacity, topography, and soil strata composition, are considered. In addition, infrastructure of the neighbourhood (water, sanitary sewer, storm sewer, hydro, telephone, etc.) must support the proposed use or be reasonably adaptable to accommodate the proposed use. Other factors to consider are location, exposure, and access/egress.
Legally Permissible Use
The use should conform to all zoning restrictions, land use regulations, other existing land use controls, titular restrictions, and any environmental regulations that may exist.
The application of the four highest and best use criteria considers a number of basic appraisal principles. In the analysis of both physically possible use and legally permissible use, the appraiser must consider probable use as it refers to the principle of conformity. Generally, the highest and best use conclusion should conform to neighbouring uses within a defined set of parameters.
22 HIGHEST AND BEST USE ANALYSIS, (Continued)
Furthermore, the analysis should evaluate proposed uses in relation to proposed or possible amendments and the probability or reasonable expectation of such changes in the foreseeable future. Time is a critical factor bearing on probability of use. Imminent changes are considered much more credible than vague references to some time in the future. The principle of change considers that zoning regulations, land use patterns, and neighbourhoods change over time, thus the highest and best use of a particular site can change over time as well. It is important that an appraiser defines the specific time applicable to an appraisal and to the highest and best use analysis.
Financially Feasible
The tests of physical possibility and legal permissibility are always applied before the remaining tests of financial feasibility and maximum productivity. If a use is physically impossible, or legally prohibited, the next criteria become irrelevant.
Financial feasibility describes a use which is expected to produce a positive return after covering operating expenses, financial obligations, and capital amortization. Data gathered for the financial analysis, such as income and expenses, vacancy rates, absorption period, constructions costs, etc., must be projected to occur over a defined investment horizon or holding period for the proposed use, and discounted using a market developed rate to produce the net present value in terms of current dollars for the site for the proposed use.
Maximally Productive
For the purpose of appraisal analysis, most profitable use refers primarily to monetary benefits in the context of investment value. From an investment perspective, highest and best use is synonymous with most profitable use, where an investor’s primary concern is to maximize profits or returns.
In order for a proposed use to be the highest and best use, there must be a foreseeable demand for the use - it must be marketable. The principle of supply and demand is essential to a highest and best use analysis. Data such as demographic statistics, building permit data, vacancy rates and absorption rates relevant to the use must be considered, as well as a general awareness of trends in development in the community.
Highest and Best Use of the Site as if Vacant
The value of land is typically determined as though vacant and the fundamental concept of highest and best use applies to land alone. The highest and best use of land as though vacant must be considered in relation to its existing use and all potential uses. For an improved property, it is assumed that the parcel is vacant (hypothetically), or can be made vacant through the demolition of any improvements.
23 HIGHEST AND BEST USE ANALYSIS, (Continued)
Factors considered when arriving at an opinion of highest and best use include physical and functional limitations, legal restrictions, economic considerations relating to marketability, and financial viability. Therefore, underlying any consideration of highest and best use are the issues of the legality of the use (land use classification), the physical probability of the use, the economic feasibility of the existing or projected use given current market conditions, and whether the proposed use is most profitable amongst the alternatives.
The subject property consists of a rectangular shaped lot providing 15,000 square feet. There is nothing distinguishing the subject from other lots in the area, other than the C2 zoning and the corner location. The parcel is similar in terms of soil content, amenities, street improvements, and required municipal services. The area has proven market acceptance and the subject site is a suitable part of that market.
In the estimate of highest and best use of a vacant site, the present land use classification governing the subject property must be considered. If the most probable use, or highest and best use, is considered to be a use which is not permitted by existing zoning regulations, ample evidence must be illustrated that the probability of a change in regulations is reasonably certain and imminent.
The subject property presently has a C2 or Highway/Service Commercial Zone land use classification. Under the current land use classification, the permitted and discretionary uses were identified in the “Zoning or Land Use Classification” section.
In terms of probable allowable uses, any use as specified in the current zoning regulations is obviously legally permissible. Referencing the Town of Hay River General Plan there are no anticipated changes in land use in or around the industrial neighbourhood and there is little reason to anticipate a change in the existing land use classification in the foreseeable future. Compliance with current zoning regulations are enforced by the Town in order to protect the neighbourhood from adverse uses.
Conformity with the surrounding properties in the neighbourhood must also be considered. The predominant zoning in the neighbourhood is for R1C - Single Family Residential Class C with ±9 other nearby lots with the same C2 zoning. Properties along the edge of the neighbourhood are zoned T - Transportation with the predominant utility observed being transportation/industrial in nature. The subject property is located just across 102 Avenue from these T - Transportation zoned lots. The subject property does not present an adverse use.
After careful examination of the data presented above, it is determined that the highest and best use of the subject site as though vacant, would be an industrial development which conforms to all of the requirements of the current zoning classification. This use of the site would generate the strongest demand in the marketplace, and hence the highest value.
24 HIGHEST AND BEST USE ANALYSIS, (Continued)
Impact of Existing Improvements
The subject site is improved with an industrial shop/garage. The current improvement develops the site in a manner conducive to the neighbourhood and the subject development is considered to represent a legal conforming use with respect to the current land use classification.
Based on the current physical condition of the improvement, effective age is estimated at 30 years. Therefore, the resulting estimated remaining economic life is 30 years. With a significant remaining economic life for the main structure on the site, it is unlikely that a typical purchaser would demolish the existing improvement to construct new buildings similar in size and utility to the existing development. The subject property is not subject to any regulatory controls, titular restrictions, or other constraints such as environmental regulations, which would affect the economic viability of the existing improvements.
Highest and Best Use of the Property as Improved
For an improved site, the contributory nature of the improvements to the site must be evaluated in relation to the highest and best use of the site as if it were vacant. The subject property is improved with an industrial shop providing average utility. The building is considered to have significant remaining economic life, and therefore adds value over and above the vacant land value. The above analysis indicates that the highest and best use of the site as vacant and as improved, are indeed the same until such time that demand warrants further development of the site.
25 PREAMBLE TO THREE APPROACHES TO VALUE
In appraising real property, there are usually three basic methods which may be applied in order to arrive at an estimate of market value. These methods are:
1. The Cost Approach 2. The Income Approach 3. The Direct Comparison Approach.
The Cost Approach involves estimating the replacement cost of the improvements on the site, including all costs which may be incurred to build such a property at today's rates. These costs are then depreciated according to the physical, functional and locational obsolescence which has accrued throughout the life of the structure. The estimate of land value as if unimproved is then added to yield an estimate of value by the Cost Approach.
The Income Approach involves estimating the gross income that the subject property is capable of producing. The gross income is then adjusted to reflect those losses due to vacancy and collection loss. From the resulting figure, the annual expenses which are fair and reasonable are deducted to yield a net operating income. At this point, one of several techniques is used to arrive at a capitalization rate, which is applicable to the subject, and which is used to estimate the market value of the subject property using this technique.
The Direct Comparison Approach involves the gathering, analyzing and comparing of similar properties which have recently sold or which have been offered for sale on the open market. In order that such properties can be used as indices of value for the subject property, it is often necessary to adjust the sales or asking prices to take into account pertinent differences between the subject and to those used as indices of value.
Due to the lack of comparable sales, the Direct Comparison Approach has not been used. The Cost Approach and Income Approach will be used in this analysis to determine the market value of the subject.
26 COST APPROACH TO VALUE
The basis of the Cost Approach to Value is as follows:
1. Estimate the land as if vacant. 2. Estimate the replacement cost of the buildings and site improvements. 3. Estimate and deduct depreciation from all sources. 4. Add the land value to the depreciated value of buildings and site improvements in order to arrive at a value for the property.
Inherent in this test of value is the Principle of Substitution, which states that when a property is replaceable, its value tends to be set by the cost of acquiring an equally desirable substitute property, assuming no costly or unnecessary delay is encountered when making the substitution. However, it should be noted that cost and value are not necessarily synonymous. It is quite possible for a property to be less valuable than cost immediately after construction, or, it is also possible that two structures of similar cost have different values.
27 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE
In the valuation of real property, land value is estimated as if unimproved, and in consideration of its highest and best use. There are six methods by which this may be accomplished.
1. Direct Comparison; 2. Extraction; 3. Allocation; 4. Direct Capitalization: Land Residual Technique; 5. Direct Capitalization: Ground Rent Capitalization; and 6. Yield Capitalization: Discounted Cash Flow Analysis - Subdivision Development Analysis.
The preferred and most common method of valuing land is the Direct Comparison Approach. The value estimate is determined based on an analysis of recent sales of similar sites according to the highest and best use of the subject site. The Direct Comparison Approach relies solely on the availability of transactions in the marketplace which can be used for comparison purposes. It is based on the principle of substitution, where an informed purchaser would pay no more for a site than the cost of acquiring one of equal attractiveness or utility on the open market. The greatest weight is placed on actual sales of similar sites made relatively concurrent with the date of appraisal, under comparable conditions. This method has been selected for the analysis which will be developed in this report.
Application of the Direct Comparison Approach involves analyzing, comparing and adjusting the sale prices of similar vacant parcels to derive an indication of value for the land being appraised. Consideration is typically given to differences in location, physical characteristics, zoning (allowable land use), motivation, date of sale, as well as any other factors that may have affected the consideration. Zoning is often the most basic criterion in selecting comparable sales, as sites with the same land use classification generally share the same or similar highest and best use, and make the most appropriate comparables.
Separate adjustments are derived and applied to the comparable sale prices for each element of comparison. Typically adjustments are made in order of property rights, financing, sale and market conditions, then for location and physical characteristics. After adjusting for these differences, an estimate of market value is derived from each comparable sale. In the final conclusion of market value, the most emphasis, or weight, is placed on sales of those properties that are the most comparable to the subject, that is, those with the least amount of adjustment.
The alternative techniques available in estimating the value of vacant land - extraction, allocation, or income capitalization - are only used when sufficient comparable data is not available. In the analysis of highest and best use, it was determined that the subject property is most economically used for transportation/industrial purposes. The land value estimate is therefore based on prices obtained in the marketplace by similar industrial sites. There have been few sales recently of vacant industrial sites in Hay River. The most recent, relevant sales are detailed on the following pages.
28 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #1
Address: 43 Dean Drive Legal Description: Lot 1912, Plan 4046 Certificate of Title: 74935 Transfer No.: 184,672 Date of Sale: February 3, 2014 Vendor: Camco Construction Ltd. Purchaser: Eagle 88 Enterprises Ltd. Zoning: M1 - Restricted Industrial Land Size: Area - 60,000 Dimensions - 200.00 feet x 300.00 feet Sale Price: $35,000 Sale Price per SF: $0.58 Remarks: The most recent sale of an industrial zoned lot located on the west side of Dean Drive. At the time of sale the lot had been cleared of trees. There was no gravel brought to site and drainage had not been put in place.
29 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #2
Address: 40 Industrial Drive Legal Description: Lot 1434, Plan 1466 Certificate of Title: 74846 Transfer No.: 184,349 Date of Sale: December 28, 2013 Vendor: Reg Campbell Purchaser: Hay River Liquor Retailers (1991) Ltd. Zoning: C2 - Highway Service Commercial Land Size: Area - 17,550 Dimensions - 100.00 feet x 175.50 feet Sale Price: $51,000 Sale Price per SF: $2.91 Remarks: Superior to the subject site in terms of location, municipal services and C2 zoning classification.
30 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #3
Address: 38 Industrial Drive Legal Description: Lot 1433, Plan 1466 Certificate of Title: 74805 Transfer No.: 184,182 Date of Sale: November 28, 2013 Vendor: B & T Plumbing and Heating Ltd. Purchaser: Hay River Liquor Retailers (1991) Ltd. Zoning: C2 - Highway Service Commercial Land Size: Area - 17,550 Dimensions - 100.00 feet x 175.50 feet Sale Price: $65,000 Sale Price per SF: $3.70 Remarks: Superior to the subject site in terms of location, municipal services and C2 zoning classification.
31 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #4
Address: 30 Dean Drive Legal Description: Lot 1073, Plan 1016 Certificate of Title: 73893 Transfer No.: 182,009 Date of Sale: July 11, 2013 Vendor: Eileen Hamilton Purchaser: Hay River Mobile Home Park Ltd. Zoning: M1 - Restricted Industrial Land Size: Area - 60,000 Dimensions - 200.00 feet x 300.00 feet Sale Price: $35,000 Sale Price per SF: $0.58 Remarks: The recent sale of an industrial zoned lot located on Dean Drive.
32 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #5
Address: 60 - 62 Industrial Drive Legal Description: Lots 1444 & 1445, Plan 1466 Certificate of Title: 70593 & 70594 Transfer No.: 172,027 Date of Sale: January 20, 2011 Vendor: Stan Dean & Sons Purchaser: 4944 N.W.T. Ltd. Zoning: C2 - Highway Service Commercial Land Size: Area - 17,550 SF (x 2) Dimensions - 200.00 feet x 175.50 feet Sale Price: $120,000 Sale Price per SF: $3.42 Remarks: Superior to the subject site in terms of location, municipal services and C2 zoning classification.
33 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #6
Address: 33 Studney Drive & 40 Dean Drive Legal Description: Lot 1038, Plan 963 & Lot 1391, Plan 1299 Certificate of Title: 70489 & 70497 Transfer No.: 171,678 Date of Sale: November 24, 2010 Vendor: Stan Dean & Sons Ltd. Purchaser: Solar 12 Electric Ltd. Zoning: M1 - Restricted Industrial Land Size: Area - 128,568 SF Dimensions - Irregular Sale Price: $115,000 Sale Price per SF: $0.89 Remarks: This industrial zoned lot is located in the subject neighbourhood.
34 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #7
Address: 24 Dean Drive Legal Description: Lot 1076, Plan 1016 Certificate of Title: 70233 Transfer No.: 170,777 Date of Sale: September 23, 2010 Vendor: Richard C. Bird Purchaser: Tanner Foehlich Zoning: M1 - Restricted Industrial Land Size: Area - 60,000 SF Dimensions - 100.00 feet x 300.00 feet Sale Price: $21,000 Sale Price per SF: $0.35 Remarks: This is the sale of a partially developed lot prior to development with a small shop.
35 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #8
Address: 18 Studney Drive Legal Description: Lot 656, Plan 365 Certificate of Title: 70219 Transfer No.: 170,705 Date of Sale: September 7, 2010 Vendor: Town of Hay River Purchaser: Wesclean Northern Sales Ltd. Zoning: M1 - Restricted Industrial Land Size: Area - 60,000 SF Dimensions - 200.00 feet x 300.00 feet Sale Price: $25,311 Sale Price per SF: $0.42 Remarks: This industrial zoned lot is located in the subject neighbourhood.
36 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
Comparable Sale #9
Address: 42 Industrial Drive Legal Description: Lot 1435, Plan 1466 Certificate of Title: 69834 Transfer No.: 169677 Date of Sale: June 30, 2010 Vendor: Reg Campbell Purchaser: Robert Bouchard Zoning: C2 - Highway Service Commercial Land Size: Area - 17,545 SF Dimensions - 100.00 feet x 175.50 feet Sale Price: $48,500 Sale Price per SF: $2.76 Remarks: Superior to the subject site in terms of location, municipal services and C2 zoning classification.
37 COST APPROACH TO VALUE - ESTIMATE OF LAND VALUE, (Continued)
COMPARABLE SALES CHART
Sale Date Sale Price Size (Sq. Ft.) Zoning Price PSF
1 Feb 2014 $ 35,000 60,000 M1 $ 0.58 2 Dec 2013 $ 51,000 17,550 C2 $ 2.91 3 Nov 2013 $ 65,000 17,550 C2 $ 3.70 4 July 2013 $ 35,000 60,000 M1 $ 0.58 5 Jan 2011 $ 120,000 35,090 C2 $ 3.42 6 Nov 2010 $ 115,000 128,568 M1 $ 0.89 7 Sep 2010 $ 21,000 60,000 M1 $ 0.35 8 Sep 2010 $ 25,311 60,000 M1 $ 0.42 9 Jun 2010 $ 48,500 17,545 C2 $ 2.76
Nine sales have been identified for comparison purposes. In the valuation of vacant industrial land, the most common unit of comparison is the sale price per square foot of gross lot area. On this basis, the above sales suggest an unadjusted unit rate range from $0.35 to $3.70 per square foot for the subject property.
The sales above consist of two separate zoning classifications in the subject neighbourhood. C2 - Highway Service Commercial and M1 - Restricted Industrial. Comparable Sales #2, #3, #5 and #9, the C2 sites, sell for a considerably higher rate per square foot given the more favourable zoning and access to services. They sold for $2.76 to $3.70.
The remaining sales, are of M1 - Restricted Industrial, like the subject site, and sold for $0.35 to $0.89 per square foot.
The subject site has been filled to grade and levelled. With consideration to the characteristics of the subject site in relation to the comparable sales, considering site development and location, a final value of $2.50 per square foot is considered reasonable for the subject property as vacant.
Therefore the calculations are:
15,000 Square Feet @ $2.50 = $37,500
38 COST APPROACH TO VALUE - COST ANALYSIS
Reproduction and Replacement Cost
The cost approach involves comparing the cost to develop a replica of the subject property (reproduction cost), or a substitute property with the same utility as the subject property (replacement cost). The terms “reproduction cost” and “replacement cost” are defined in The Appraisal of Real Estate, Second Canadian Edition, Appraisal Institute of Canada and Appraisal Institute, 2002, as follows:
Reproduction cost is the estimated cost to construct, as of the effective appraisal date, an exact duplicate or replica of the building being appraised, insofar as possible using the same materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building.
Replacement cost is the estimated cost to construct, as of the effective appraisal date, a building with utility equivalent to the building being appraised, using contemporary materials, standards, design, and layout. When this cost basis is used, some existing obsolescence in the property is assumed to be cured.
Reproduction cost is the theoretical base for the cost approach. Estimating reproduction cost may be complicated when materials used to construct the improvement are no longer available or if construction standards have changed. Reproduction cost, however, usually provides the basis for measuring all causes of depreciation, if and when required, including the cost of constructing superadequate features that may be functionally obsolete.
Replacement cost may be easier to obtain and may reduce the complexity of depreciation analysis as it can eliminate the need to estimate some, but not all, forms of functional depreciation. Replacement structures may cost less than identical structures because they would be constructed with readily available materials, and current construction standards, which also correct deficiencies, resulting in lower costs. A replacement structure would typically correct functional obsolescence resulting from superadequacies, however, the cost of removing items of curable functional depreciation and the excess operating costs of superadequacies must still be considered.
Replacement cost will be used in the appraisal because construction standards have changed since the era in which the subject property was developed.
Several methods of calculating the replacement cost of improvements are available. 1. Cost Index Trending; 2. Unit-in-place Method; 3. Quantity Survey Method; 4. Comparative Method; and 5. Cost Services Method. The Cost Services Method has been utilized in this report.
39 COST APPROACH TO VALUE - COST ANALYSIS, (Continued)
Cost Services Method
The use of cost services is one of the most widely used methods of estimating building construction costs. Cost services work on the basis of providing unit cost information for benchmark structures for a given date and for various types and classes of buildings. Index figures are supplied and used as multipliers to update these costs for individual geographic areas, based on material and labour cost changes and the passage of time.
The Marshall Valuation Service Manual, which is a manual costing service, has been relied upon and correlated with the current costs supplied by knowledgeable participants in the construction field.
The factors in the Manual cover the following:
1. Land Acquisition
- Broker's Fees - Legal Fees
2. On-Site Work (where applicable)
- Survey and Test Borings - Utilities, which include:
(a) Water connection to a central system (b) Storm sewers (c) Sanitary sewer connections to a central system (d) Gas distribution connection (e) Primary electrical distribution (f) Telephone distribution
3. Building and Equipment (which include)
(a) Layout (b) Excavation (c) Footings and foundations (d) Structural frame (e) Exterior walls (f) Roofing and insulation (g) Subflooring (h) Sidewalk overhangs (i) Sidewalks (j) Equipment rooms
40 COST APPROACH TO VALUE - COST ANALYSIS, (Continued)
3. Building and Equipment, (Continued)
(k) Heating and cooling (l) Incinerators (m) Electrical wiring (n) Plumbing (o) Contractor's overhead and profit (p) Interior finish
4. Architectural and Engineering
- Site Planning - Building and Improvements
5. Soft Costs and Financing
- Interest during construction - Appraisal Fees - Legal Fees
6. Administrative Overhead & Construction Supervision
- Construction supervision - Field office expense - Bookkeeping - Salaries and overhead of staff
41 COST APPROACH TO VALUE - COST ANALYSIS - MARSHALL VALUATION SERVICE MANUAL
Notes:
1. The quarterly local cost factor published in the Manual for Yellowknife, the closest published centre, is 1.55 for Class “S” buildings. The Marshall manual does not adequately address extreme northern cost factors. Our firm has researched the published (Yellowknife) multiplier, relative to the “actual” cost on a number of projects - residential and commercial (manual vs actual). Our research has found that the published multiplier is low by 25% - 50%, depending on the type of construction. Accordingly, we have adjusted the Yellowknife multiplier by 50%.
42 COST APPROACH TO VALUE - DEPRECIATION ANALYSIS
Depreciation may be defined as a loss in value due to any cause. These causes may involve lessening in value from the passage of time and wear and tear, or from changing public standards. It is calculated as the difference between the contributory value of an improvement and either its reproduction or replacement cost at the time of appraisal.
Depreciation may be measured by applying three different methods:
• The Market Extraction Method; • The Age-Life Method; or • The Breakdown (Observed Condition) Method.
Each method may be applied in combination with another to solve specific problems, or separately to test the reasonableness of the estimates derived from other methods. The market extraction and age-life methods deal with the property as a whole, expressing an overall estimate of depreciation from all causes, not always distinguishing between short-lived and long-lived items, and relying on general forecasts of effective age and economic life. The breakdown method, also known as the observed condition method, identifies each specific element of depreciation observed during the physical inspection of the property, and treats each element separately. The depreciation is deducted from the reproduction cost new calculated for the improvement. In this method, all physical building components belong to one of three categories as detailed below.
1. Physical Deterioration (a) Curable - Deferred Maintenance (Repairs) (b) Incurable - Short-Lived - Long-Lived
2. Functional Obsolescence (a) Curable - Deficiency - Modernization - Superadequacy (b) Incurable - Deficiency - Superadequacy
3. External Obsolescence (a) Economic (b) External
Physical Deterioration, Curable - Deferred Maintenance
Curable physical deterioration refers to items of deferred maintenance, which are items requiring immediate repair on the effective date of the appraisal. Curable items are termed so because the cost to cure is not more than the anticipated benefits to the owner after the changes, and any potential purchaser would likely repair or replace the items affected. It is aging, and simply wear and tear that causes deterioration.
43 COST APPROACH TO VALUE - DEPRECIATION ANALYSIS, (Continued)
Incurable Physical Deterioration, Short-Lived
Incurable physical deterioration, short-lived, is caused by the passage of time and wear and tear on the structures. These items are expected to have a shorter remaining economic life than the remaining economic life of the basic structure. They are expected to wear out and require repair or replacement sometime before the end of the remaining economic life of the improvement as a whole. Short-lived items differ from items of deferred maintenance in that they are not ready to be replaced on the date of the appraisal, but will likely require replacement in the foreseeable future. Once a short-lived item becomes 100% depreciated, it becomes deferred maintenance.
Incurable Physical Deterioration, Long-Lived
Long-lived items are expected to have a remaining economic life equal to that of the basic structure and include all items that were not identified as either items of deferred maintenance or as short-lived items. Physical deterioration, long-lived, as with short-lived, is caused by the passage of time. Examples of long-lived components include foundation, framing, and other structural components.
Functional Obsolescence, Curable
When there is a loss in value inherent in a structure from its inability to efficiently perform its proper function, it suffers from functional obsolescence. What was functionally adequate at the time of construction may become inadequate as design standards, mechanical systems, or construction materials change over time. Items are considered curable if the cost to cure is offset by the value increment equal to or greater than the expenditure. Curable forms of this type of depreciation are categorized into three categories.
(a) Curable Functional Obsolescence - Deficiency Requiring Addition
A structure suffers from functional obsolescence due to deficiency because it lacks something that competing properties in the market have.
(b) Curable Functional Obsolescence - Deficiency Requiring Substitution or Modernization
A curable deficiency is caused by something already present in the property that is either substandard in the current market, or defective and is preventing some other component in the property from working efficiently.
(c) Curable Functional Obsolescence - Superadequacy
A building component suffers from superadequacy if it is excessive in terms of what a typical buyer would expect in the property. Examples might include excessive mechanical systems or perhaps an overly elaborate entrance and foyer in an average quality building.
44 COST APPROACH TO VALUE - DEPRECIATION ANALYSIS, (Continued)
Functional Obsolescence, Incurable
Incurable functional obsolescence occurs when the cost of achieving a cure is greater than the anticipated increase in utility, therefore, it is not economically curable. The two classifications of incurable functional obsolescence are deficiency and superadequacy.
(a) Incurable Functional Obsolescence - Deficiency
A deficiency would be identified where a structure is lacking a component that is typical of competing properties in the marketplace.
(b) Incurable Functional Obsolescence - Superadequacy
Superadequacy is defined as an item that adds to reproduction cost new unnecessarily. An example of this form of obsolescence is the use of excessively thick concrete foundation walls.
External Obsolescence
External obsolescence results from negative influences caused by external factors outside the control of the property owner that generally result in decreased demand, and therefore a loss in value. External obsolescence may be attributed to economic or locational factors.
(a) External Obsolescence - Economic
Economic external obsolescence results from external factors that affect the whole market, whether it be municipal, regional, or territorial (or provincial). Examples include closure of a major industry, high unemployment, or periods of high interest rates.
(b) External Obsolescence - Locational
Locational obsolescence is a loss in value as a result of a negative influence away from the property. Examples in a commercial neighbourhood like the subject’s would include the immediate proximity of an incompatible development, such as a scrap yard.
45 SUMMARY OF COST APPROACH TO VALUE
The Age-Life Method will be applied to the buildings and any site improvements in this report. This method deals with the property as a whole, expressing an overall estimate of depreciation from all causes, and relying on general forecasts of effective age and economic life. On this basis, the depreciation rates which are applied to the building is based on an age-life formula, as illustrated below:
Summary - Cost Approach to Value
Total Reproduction Cost $318,368 Less Depreciation ($) (159,184) Depreciated Cost $159,184 Land Value 37,500 Total Property Value 196,684 Rounded $195,000
Functional obsolescence has also been considered. No adjustment is warranted. External obsolescence has also been considered. There are no factors external to the property which detract from value. The subject is located within the Hay River industrial area and surrounding properties are similar industrial and mixed industrial and residential uses. No allowance has been made for external obsolescence.
46 DIRECT COMPARISON APPROACH
The Direct Comparison Approach is a method of estimating market value whereby the subject property is compared with similar properties that have sold recently. The underlying assumption is, naturally, that if the subject property had been in competition with the comparable property or properties, and appealing to the same class of purchaser, it would have been in the same market. This approach is based on the Principle of Substitution which maintains that a prudent purchaser will not pay more for a property than it would cost to buy an equally desirable substitute property provided there is no undue delay in performing the substitution.
In applying the Direct Comparison Approach, a systematic procedure is used, and the steps of the procedure are as follows:
1. Survey the marketplace to locate comparable properties: (a) that have sold recently; (b) that are currently offered for sale; and (c) on which offers have been made.
2. Gather and validate pertinent information about each comparable property.
3. Analyze sales with regards to date of sale, length of time property was offered, terms of sale, and motivation of buyer and seller.
4. Compare the subject property in detail with each comparable property.
5. Correlate the market data, perform necessary adjustments, and obtain an indication of the value of the subject property.
The Direct Comparison Approach has not been used in this analysis due to a lack of comparable sales.
47 INCOME APPROACH TO VALUE
The Income Approach converts a stream of future expected incomes from a property into present value or worth. This approach assumes that there is a relationship between the income, specifically the net income, that a property is capable of earning, and its value at any given moment in time.
In the Income Approach, the estimated annual net income produced by a property is capitalized at an appropriate rate into an indication of the market value of the subject property. Capitalization is the process through which a future income stream that can be produced by a property is converted into an indication of market value via the application of factors to the income stream.
The basic steps of the Income Approach are:
1. Estimate the total annual gross income of the property. Deduct from that gross income an allowance for vacancy and collection loss, to arrive at an Effective Gross Income (EGI).
2. Estimate the annual operating expenses which include all expenditures that must be made to protect the income flow.
3. Estimate the Net Operating Income (NOI) which is that income remaining after deducting operating expenses from the Effective Gross Income.
4. Select the appropriate method of capitalization.
5. Select an appropriate capitalization rate.
6. Apply the appropriate capitalization process to convert the Net Operating Income into an indication of market value.
Some of the terms associated with the Income Approach are defined below:
i) Gross Income: Estimate of total possible revenue from all sources if the property was fully and continuously rented for a full year with no rental loss.
ii) Effective Gross Income: Gross income less losses incurred through vacancy and collection loss.
iii) Expenses: Operating expenses which are required to maintain an income flow for the income-producing property. Some examples of operating expenses are property taxes, insurance, repairs and maintenance costs, as well as management fees.
iv) Net Operating Income: Operating income left after expenses have been deducted from the Effective Gross Income.
48 INCOME APPROACH TO VALUE, (Continued)
v) Capitalization: The process of converting the Net Operating Income of a property into its capital value by the application of an appropriate factor.
The Income Approach is an important valuation method utilized to arrive at an estimate of value for an income producing property. Income producing property is typically purchased for investment purposes and from the investor's point of view, earning power is the critical element that affects the property's value. One essential investment premise is that the higher the earnings, the higher the value. An investor who purchases income producing real estate is essentially trading a sum of present dollars for the right to receive future dollars. The Income Approach implements the net annual income that a property is expected to produce. The estimated net income is capitalized, according to prevailing rates of return on similar properties, to indicate the price an investor would be justified in paying for the property ownership.
49 INCOME APPROACH TO VALUE - INCOME AND EXPENSE ANALYSIS
The subject property is an industrial shop providing average industrial utility. The building is 40' x 52' for a total foot print of 2,080 square feet. The subject property is currently used for storage and is not in regular use. In order to determine the market rental rate for the subject property, comparable rental data and active listings of similar industrial space in the Hay River area was researched. Local Realtors and Property Managers were also contacted for going rental rates.
Available industrial rental information in Hay River is very limited, and what is available provides a wide range in terms of the rental rates based of the quality and condition of the available rental space. In addition, most of the information has been provided on a confidential basis, so specific rental rates for individual properties cannot been provided. Research of properties in the Hay River market suggests that industrial space commands a wide range from $5.00 to $14.00 per square foot, with rents toward the higher end for space comparable to the subject in terms of condition and utility provided. The properties most similar to the subject property had rents of $10.00 to $12.00 per square foot triple net.
Considering the quality and condition of the space provided, a rental rate of $12.00 per square foot on a net basis would be considered reasonable for the subject property.
Operating Expenses
The subject property is being analyzed on a net basis, whereby the tenants would responsible for all utilities to the property as well as property taxes, and insurance. The property owner is responsible for structural repairs and maintenance and property management expense. Expenses to the property are analysed below:
Repairs & Maintenance
An allowance of approximately $0.50 per square foot of the total gross floor area is used in this analysis as a reflection of expenses for repairs and maintenance items.
Property Management
Typically management costs for a building similar to the subject would range between 4% and 8% of the effective gross income. The subject property is currently managed by the property owner. A management expense of 5% of effective gross income has been estimated for the subject.
50 INCOME APPROACH TO VALUE - INCOME AND EXPENSE ANALYSIS, (Continued)
Vacancy and Collection Loss
Income producing properties cannot be operated at full financial efficiency throughout their economic lives. For this reason, an allowance that measures the long term loss resulting from vacancy, tenant turnover, and credit loss is generally applied. Generally, the greater number of tenants in a building, the greater chance of having periodic vacancies and accumulating bad debts over the economic life of a building. This allowance is typically expressed as a percentage of potential gross income. This allowance also reflects long-term trends, and therefore, abnormal fluctuations of either very high or very low vacancy levels are normalized.
A recent comprehensive vacancy survey of industrial/commercial space within the local market has not been completed as part of this analysis. The subject improvement is in average condition and provides average utility. Given the layout and size of the warehouse it is likely to be occupied by one tenant. With consideration to the location, quality and condition of the subject improvement, a vacancy rate of 4% is considered reasonable in this analysis.
A restructured operating statement follows and has been prepared based on the revenue and expense information in the above analysis.
51 INCOME APPROACH TO VALUE - INCOME AND EXPENSE ANALYSIS, (Continued)
Restructured Operating Statement
Revenue:
Shop Space - 2,080 Sq. Ft. @ $12.00 $24,960 Less: Vacancy & Collection Loss @ 4% (998) Total Effective Gross Income $23,962
Expenses: Structural Repairs and Maintenance $1,040 Property Management 1,198 Total Expenses (2,238)
Net Operating Income $21,724
52 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS
Overall Rate Capitalization
Capitalization can be defined as a technique of converting an income stream into a capital sum by measuring the present worth of the future income stream to arrive at the indicated value of the property. The valuer projects gross income, effective gross income, and finally net income. The net income is capitalized into a value indication. The present worth of the net annual operating income is measured at an appropriate rate to determine overall property value. It is imperative in the consideration of income that the typical investor requires not only a return of his capital investment in the property, but also a rate of return on the investment which is commensurate with risk.
In the simplest form of capitalization, an income stream is converted into a capital sum, or in other words, indicated property value, by dividing net annual income by an appropriate capitalization rate. The variety of capitalization procedures used in the Income Approach relate to differing concepts, data projections, and quality and durability of the income stream. In each valuation, the appraiser selects the method and technique considered best suited to the appraisal problem.
The two capitalization methods most often utilized are Direct Capitalization and Yield Capitalization. Yield Capitalization uses the discounting procedure to convert future benefits to present value on the premise of a required level of profit or rate of return on investment capital. In Yield Capitalization, investment goals pertaining to the return on and of invested capital are specified and simulated by means of formulas and factors designed to reflect various investment expectations. This method tends to be complex, and will not be used in this analysis.
The Direct Capitalization Procedure is considered most appropriate as it closely parallels the actions of investors for the type of real estate under analysis by directly applying the selected overall capitalization rate to the estimated net income for the subject property. The Direct Capitalization Procedure is simple and thus easily understood. The capitalization rate, or factor, can be derived directly from the marketplace. Direct Capitalization does not specify a distinction between return on and return of capital, nor does it define value in terms of specific assumptions made by investors.
Direct Capitalization
Direct Capitalization is used to convert an estimate of single years income into an indication of value in one direct step. The annual estimated income is divided by an appropriate rate or multiplied by an appropriate factor. The chosen rate or factor represents the relationship between income and value as observed in the marketplace.
Direct Capitalization is market oriented and stresses the analysis of market evidence and valuation by assuming the inferences of typical investors. Direct Capitalization may be based on gross potential income, effective gross income, net operating income, or equity dividend. The selection of the income to be capitalized is determined by the purpose of the analysis and data availability.
53 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS, (Continued)
Application
As described earlier, Direct Capitalization is a method used to convert a single years estimate of income into a value indication via the Income Approach. Although any interest in real estate with an income stream can be valued by Direct Capitalization, the most common interest appraised is the fee simple estate. The Direct Capitalization formula applicable to this type of valuation is:
Value = Net Operating Income ÷ Overall Capitalization Rate
The overall capitalization rate can be determined from comparable sales, effective gross income multipliers and net income ratios, band of investment or weighted-average techniques, debt coverage ratios, and yield capitalization techniques.
Deriving capitalization rates from comparable sales is the preferred technique when sufficient data of similar, competitive properties is available. Data concerning sale price, income, expenses, financing terms, and market conditions at the time of sale must be available for each transaction examined. If differences exist between the comparable sale and the subject property that could affect the overall capitalization rate, judgement must be used to reconcile the differences as to whether the rate for the subject property should be higher or lower than the rate in a specific sale.
Overall Rate Derivation
The overall capitalization rate is a rate which represents what prudent purchasers are requiring or obtaining for property investments which are similar to the subject in terms of physical characteristics, size and duration of income stream. Hay River is a small town where there are few transactions involving industrial property. Accordingly, in addition to the local market, other markets within the Northwest Territories have been researched for recent sales of commercial/industrial properties in order to ascertain the overall capitalization rate considered applicable to the subject property. The market transactions detailed on the following pages have been analyzed.
54 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS, (Continued)
Comparable Sale #1
Address: 26 Studney Drive & 23 Industrial Drive Hay River, NT X0E 0R6
Property Name: n/a
Legal Description: Lots 639 & 652, Plan 365
Vendor: 4601 N.W.T. Ltd.
Purchaser: Wilson C McBryan
Certificate of Title: 71330 & 71331
Transfer #: 174,120
Building Description: Shop - 4,700 SF Mezzanine - 352 Parts Warehouse - 4,000 SF Mezzanine - 984 SF
Gross Floor Area - SF: 10,036
Land Size - SF: 120,000
Date of Sale: July 29, 2011
Sale Price: $577,500
Net Operating Income: $48,059
Overall Capitalization Rate: 11.65%
Sale Price per SF: $57.54
Remarks: This site has been improved with two older ATCO fold-away steel frame buildings utilized as a service shop and a parts warehouse. The second lot with an estimated value of $165,000 is not utilized by the existing improvements.
55 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS, (Continued)
Comparable Sale #2
Address: 8 - 10 Industrial Drive Hay River, NT X0E 0R6
Property Name: n/a
Legal Description: Lots 1418 & 1419, Plan 1466
Vendor: 4944 N.W.T. Ltd.
Purchaser: 5323 N.W.T. Ltd.
Certificate of Title: 71188 & 71189
Transfer #: 173,730
Building Description: Main - 1,960 SF Upper - 1,960 SF
Gross Floor Area - SF: 3,920
Land Size - SF: 35,150
Date of Sale: July 8, 2011
Sale Price: $440,000
Net Operating Income: $39,406 (market)
Overall Capitalization Rate: 10.10%
Sale Price per SF: $102.04
Remarks: This site has been improved with a relatively new good quality two storey mixed use building providing main floor shop, upper level office and a two storey two bedroom apartment. The second lot with an estimated value of $50,000 is not utilized by the existing improvements.
56 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS, (Continued)
Comparable Sale #3
Address: 2 Aspen Road Hay River, NT
Property Name: n/a
Legal Description: Lots 871, Plan 506
Vendor: 5277 N.W.T. Ltd.
Purchaser: Rat Dog Inc.
Certificate of Title: 60605
Transfer #: 168,777
Building Description: Retail - 2,106 SF Shop - 841 Warehouse - 1,315 SF Residence - 1,071 SF
Gross Floor Area - SF: 5,333
Land Size - SF: 60,000
Date of Sale: April 22, 2010
Sale Price: $409,000
Net Operating Income: $44,502
Overall Capitalization Rate: 10.88%
Sale Price per SF: $57.97
Remarks: This site has been improved with a mixed use complex consisting of a retail/parts/office building, a shop, and a residence, all attached, as well as a detached cold storage warehouse. The retail area is 2,106 square feet; the shop 841 square feet; the three-bedroom residence 1,071 square feet; and the warehouse 1,315 square feet. The site is completely fenced.
57 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS, (Continued)
Comparable Sale #4
Address: 116 Enterprise Drive Yellowknife, NT
Property Name: N/A
Legal Description: Lot 4, Block 534, Plan 1991
Vendor: Aurora Auto Sales Ltd.
Purchaser: Millennium Technologies Ltd.
Certificate of Title: 72128
Transfer #: 177,262
Building Description: Mixed-use 2,640 SF Garage 1,600 SF
Gross Floor Area - SF: 4,240 SF
Land Size - SF: 40,689 SF
Date of Sale: April 27, 2012
Sale Price: $530,000
Net Operating Income: $50,483 (Market)
Overall Capitalization Rate: 9.53%
Sale Price per SF: $125.00
Remarks: This site is improved with a residence, with a separate lower level suite and a garage. The residence is somewhat dated on the upper level and the garage in only partially finished.
58 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS, (Continued)
Comparable Sale #5
Address: 116 Nahanni Drive Yellowknife, NT
Property Name: N/A
Legal Description: Lot 7, Block 536, Plan 1991
Vendor: Yves Charbonneau
Purchaser: Cascom Ltd.
Certificate of Title: 71565
Transfer #: 175,193
Building Description: Residence 1,555 SF Industrial 2,000 SF Workshop 734 SF
Gross Floor Area - SF: 4,289 SF
Land Size - SF: 20,775 SF
Date of Sale: October 24, 2011
Sale Price: $575,000
Net Operating Income: $58,519 (Market)
Overall Capitalization Rate: 10.18%
Sale Price per SF: $134.06
Remarks: The site is improved with a residence, industrial building, and a workshop. The residence is new and in good condition.
59 INCOME APPROACH TO VALUE - CAPITALIZATION PROCESS, (Continued)
Comparable Sale #6
Address: 246 Utsingi Drive Yellowknife, NT
Property Name: N/A
Legal Description: Lot 57, Block 553, Plan 4089
Vendor: Michael Murphy
Purchaser: Paul Wiedemann
Certificate of Title: 72520
Transfer #: 178,266
Building Description: Residence - 1,501 SF Shop - 1,357 SF Storage - 864 SF Storage - 576 SF Other - 96 SF
Gross Floor Area - SF: 4,394 SF
Land Size - SF: 45,424 SF
Date of Sale: July 26, 2012
Sale Price: $715,000
Net Operating Income: $56,808 (Market)
Overall Capitalization Rate: 9.08%
Sale Price per SF: $142.34
Remarks: It is estimated that the above sale had excess land valued at approximately $89,544. This has been deducted at the arrival of the capitalization rate as well as the sale price per square foot. The site is improved with a residence, industrial building, and two storage buildings.
60 SUMMARY OF INCOME APPROACH TO VALUE
Reconciliation of Overall Capitalization Rates
When estimating an overall capitalization rate, the following factors were considered: physical characteristics and quality of the improvements; location; type of investor and investor requirements; financing conditions; supply and demand for this type of property; as well as size, income producing and expense characteristics.
The overall capitalization rate is a rate which represents what prudent purchasers are requiring or obtaining for property investments which are similar to the subject in terms of physical characteristics, size, and duration of the anticipated income stream.
The capitalization rates indicated in the sales transactions are listed below in order of low to high.
Indicator# Capitalization Rate
6 8.75% 4 9.53% 2 10.10% 5 10.18% 3 10.88% 1 11.65%
The above sales comparisons indicated a capitalization rate range from 8.75% to $11.65% for the subject property.
Sales #1 to #3 represent transactions from the Hay River market. Sale #1, at 11.65%, represents the sale of two industrial lots, one of which was improved with two older ATCO fold-away steel frame buildings utilized as a service shop and parts warehouse. Sale #2, at 10.10%, represents the sale of a relatively new, good quality mixed use building providing shop, office and residential utility. Sale #3 at 10.88% represents a sale of a mixed use property providing retail, office and residential utility.
Sales #4, #5, and #6 are sales of industrial properties from the Yellowknife market. These properties provided industrial and residential utility.
It would have been preferable to have more sales indicators from the Town of Hay River or other areas within the region, but that is not possible. A property in Hay River would typically pose a greater investment risk in comparison to a similar property in Yellowknife.
61 SUMMARY OF INCOME APPROACH TO VALUE, (Continued)
In the determination of an appropriate capitalization rate which reflects the risk a typical investor would assume with regard to the subject property, consideration has been given to the location of the subject within the community, the quality and condition of the subject improvement, and the economic outlook for the Hay River market. Based on an analysis of the available information as detailed above, a capitalization rate sensitive to the investor's requirements, with regard to the subject property would be toward the middle of the range as indicated by the comparable sales given the age, condition, and quality of the subject property.
On this basis, it is our opinion that a suitable capitalization rate for the subject property is fairly represented at 10.50%.
Applying the overall capitalization rate to the estimated net operating income results in a value indication which can be calculated as follows:
Value = Net Operating Income ÷ Overall Capitalization Rate
Value = $21,724 ÷ 0.105
= $206,895
Rounded = $210,000
62 RECONCILIATION OF VALUE INDICATIONS
The value of the subject property has been estimated using the Cost Approach and Income Approach to Value. The value indications by each of the approaches are as follows:
1. Value indicated by Cost Approach: $195,000 2. Value indicated by Income Approach: $210,000
The Cost Approach
The Cost Approach is based on the Principle of Substitution which affirms that when a property is replaceable, its value tends to be set by the cost of acquiring an equally desirable substitute property, assuming no costly or unnecessary delay is encountered when making the substitution.
The strengths of the Cost Approach are that it is easily understood; cost calculations are relatively easy to perform; it is often the best approach in the appraisal of special purpose properties; and this method provides a convincing test of value when comparable land sales are available and depreciation straight forward.
The most significant weakness of the Cost Approach lies in the difficulty of estimating depreciation which may diminish the reliability of the approach. This approach is most applicable where the improvements represent highest and best use of the site and the land value is well supported, as with new properties or proposed construction. Another weakness of this approach is that it does not incorporate the forces of supply and demand or other factors that influence property values from an investment perspective.
In applying the Cost Approach, the land value has been estimated by the Direct Comparison Approach, and the improvements by a replacement cost manual.
Income Approach
The Income Approach is based on actual and projected income, expenses, and vacancy rates, which are all based and supported by an investigation of local needs and trends, existing and proposed competition, management, and operating experiences of similar developments. The value indication derived through income analysis is also based on capitalization rates developed from actual sales of other commercial projects with characteristics similar to the subject. The subject is an industrial property, and as such, is income producing in nature. Any property that generates income can be valued using the Income Approach.
63 FINAL ESTIMATE OF VALUE
In the final determination of overall market value, most weight shall be given the valuation technique which provides the most data conducive to the appraisal problem. The appraisal procedures completed in this analysis include the Cost Approach and the Income Approach to Value.
The replacement cost of the improvement has been determined with reference to numerous sources, and it is felt that an accurate cost estimate of the building has been determined. However, the results of the Cost Approach are not always consistent with market value. This appraisal procedure does not consider the economic forces of supply and demand, or other factors that influence property value within an investment market. There is also difficulty in the accurate estimation of depreciation in older properties. In addition, construction costs have risen dramatically in the past few years. As such, least emphasis will be placed on this approach.
The Income Approach is based on actual and projections of income, expenses, and vacancy rates, which are all based and supported by an investigation of local needs and trends, existing and proposed competition, management, and operating experiences of similar developments. The value indication derived through income analysis is also based on capitalization rates developed from actual sales of other industrial/commercial projects. Typically, properties developed in industrial/commercial subdivisions are conceived as “revenue generating” facilities - either as rentals, occupied by commercial tenants, or as venues occupied by the owner, providing suitable infrastructure and location to support enterprise.
The subject property is currently developed with an average quality industrial shop providing 2.080 square feet.
Based on the above analysis and the characteristics of the subject property, with emphasis given to the value indication provided by the Income Approach, the current market value of the subject property as at July 20, 2014, is estimated at:
TWO HUNDRED TEN THOUSAND ($210,000) DOLLARS
64 FINAL ESTIMATE OF VALUE, (Continued)
Exposure Time
In conjunction with the value estimates contained herein, it is critical to note the accompanying review of market exposure times upon which these value estimates have been based. Market exposure time is presumed to have occurred within the period ending at the effective date of this report, and is the anticipated length of time, in the current market, which is required to attract a potential purchaser and reach a final agreement of purchase and sale. Further consideration must include the time between execution of the final agreement and the actual date of closing the transaction.
This factor has proven extremely important with respect to properties similar to the subject in the current market. It is not uncommon for industrial properties to have been exposed to the market for a period in excess of six months prior to their eventual sale.
It is important to note, however, that asking (listing) prices are often reduced within these time periods. In some cases, there may be more than one price reduction. By strict definition, exposure time is to be calculated from the last price reduction (or original listing price if no reduction) to the date of sale. With this in mind, exposure times reflected by these types of properties would then tend to be toward the lower end of this range.
Having regard to all of the foregoing, the estimate of values contained herein presume that the subject property has been exposed to the market for the preceding, say, three to six months prior to its sale. Naturally, emphasis must be given to establishing a realistic and competitive listing price in the current market.
65 CERTIFICATE OF APPRAISER
Re: 1 104 Street, Hay River, Northwest Territories
I certify that, to the best of my knowledge and belief:
- the statements of fact contained in this report are true and correct;
- the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal impartial, and unbiased professional analyses, opinions, and conclusions;
- I have no present or prospective interest in the property that is the subject of this report, and no personal interest or bias with respect to the parties involved;
- I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment;
- my engagement and compensation for this assignment were not contingent upon developing or reporting predetermined results, the amount of the value estimate, or a conclusion favouring the client;
- my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Canadian Uniform Standards;
- I have the knowledge and experience to complete the assignment competently;
- no one provided significant professional assistance to the person signing this report other than the review appraiser;
- as of the date of this report, we have fulfilled the requirements of the Appraisal Institute of Canada Continuing Professional Development Program for designated members and candidate members;
- I, Gardiner McCarthy, inspected the subject property on July 20, 2014, the effective date of appraisal.
66 CERTIFICATE OF APPRAISER, (Continued)
Based upon the data, analyses and conclusions herein, the market value of the fee simple interest in the property described, as at July 20, 2014, is estimated at:
TWO HUNDRED TEN THOUSAND ($210,000) DOLLARS.
Respectfully submitted,
STEWART, WEIR, MacDONALD LTD.
Gardiner McCarthy Real Estate Appraiser
Lauchlin MacDonald, AACI, P. App. Review Appraiser
Date: August 8, 2014
GM/ps
67 ADDENDA
PHOTOGRAPHS PHOTOGRAPHS PHOTOGRAPHS PHOTOGRAPHS Financial Statements of
TOWN OF HAY RIVER
December 31, 2013
Approved on Behalf of theDRAFT Council: Mayor
Senior Administrative Officer TOWN OF HAY RIVER Financial Statements Year Ended December 31, 2013
Management Responsibility for Financial Statements 1 Auditors' Report 2-3 Consolidated Financial Statements Consolidated Statement of Financial Position Statement I 4 Consolidated Statement of Operations and Surplus Statement II 5 Consolidated Statement of Changes in Net Financial Assets (Debt) Statement III 6 Consolidated Statement of Cash Flows Statement IV 7 Notes to the Financial Statements 8-19 General Fund Schedule of Operations and Surplus Schedule 1 20 Utility Fund Schedule of Operations and Surplus Schedule 2 21 Land Development Fund Schedule of Operations and Surplus Schedule 3 22 General Fund - Schedules of Revenue Property Taxes Schedule 4 23 Sales of Services Schedule 4 23 Other Revenue from Own Sources Schedule 4 23 Government Transfers Schedule 5 24 General Fund - Schedules of Expenditures General Government Schedule 6 25 Protective Services Schedule 7 26 Transportation and Public Works Schedule 8 27 Environmental and Public Health Services Schedule 9 28 Planning and Development Schedule 10 28 Recreational and Cultural Schedule 11 29 Fiscal and Valuation Schedule 12 29 Schedule of Reserves Schedule 13 30 Schedule of Expenditures by Object Schedule 14 31 Schedule of Changes in Accumulated Surplus Schedule 15 32 Schedule of Tangible Capital Assets DRAFTSchedule 16 33 Gas Tax Agreement Statement of Revenue, Expenditure and Deferred Contribution Schedule 17 34 Community Public Infrastructure Agreement Statement of Revenue, Expenditure and Deferred Contribution Schedule 18 35 Community Capacity Building Fund Agreement Statement of Revenue, Expenditure and Deferred Contribution Schedule 19 36 Build Canada Fund Agreement Statement of Revenue, Expenditure and Deferred Contribution Schedule 20 36 Public Transit Fund Agreement Statement of Revenue, Expenditure and Deferred Contribution Schedule 21 37 Schedule of Honoraria and Travel Schedule 22 38 MANAGEMENT RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Town Council, which is responsible for, among other things, the financial statements of the Town of Hay River, delegates to Administration the responsibility of the financial statements. The Town Council appoints independent auditors to examine and report directly to them on the financial statements. The financial statements were prepared by Administration. Accounting principles have been followed as recommended by the Department of Municipal and Community Affairs, based upon the requirements of the Cities, Towns and Villages Act of the Northwest Territories, and the Public Sector Accounting Board recommendations of the Canadian Institute of Chartered Accountants.
Administration maintains a system of internal controls to ensure that transactions are accurately recorded on a timely basis, are properly approved and result in reliable financial statements. There are limits inherent in all systems based on the recognition that the cost of such systems should not exceed the benefits to be derived. Administration believes its system provides the appropriate balance in this respect.
The Town Council carries out its responsibility for review of the financial statements primarily through the Administration. The Administration reports regularly to Council on financial matters, including the results of the audit examination and any other matters necessary for its consideration in approving the financial statement issuance.
The financial statements have been reported on by Ashton Chartered Accountants. The auditors' report outlines the scope of their audit and their opinion on the presentation of the information included in the financial statements. DRAFT
Senior Administrative Officer Hay River, NT Town of Hay River August 11, 2014
1
Suite 8 – 6 Court Oreille Street Hay River, NT X0E 1G2 PH: (867) 874-6775
AUDITORS' REPORT
To the Mayor and Council
We have audited the consolidated financial statements of the Town of Hay River, which comprise the consolidated statement of financial position as at December 31, 2013, and the consolidated statement of operations and surplus, changes in net financial assets (debt), changes in accumulated surplus and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards required that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement in the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Basis for Qualified Opinion
As explained in Note 12, the Town hasDRAFT recorded its land held for town use at the cost incurred to acquire it. This consititues a departure from Canadian Public Sector Accounting Standards contributed assets are to be recorded at their fair market value at the date of contribution. The effects on the financial statements have not been determined as the fair market value of the land was not ascertained. As a result, we were unable to determine any adjustments that might have been found necessary in respect of the land inventory, government transfers or accumulated surplus.
2 Qualified Opinion
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the consolidated financial statements present fairly, in all material respects, the financial position of the Town of Hay River as at December 31, 2013, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
ASHTON Chartered Accountants Hay River, NT Business Advisors August 11, 2014
DRAFT
3 TOWN OF HAY RIVER Statement I Consolidated Statement of Financial Position
December 31, 2013
2013 2012
Financial Assets
Cash & cash equivalents, Note 2 $ 14,656,975 $ 15,443,511 Receivables Municipal taxes receivable, Note 3 306,680 277,526 Accounts receivable, Note 4 1,159,035 493,392 Land inventory for resale 506,021 356,866 Total Financial Assets 16,628,711 16,571,295
Liabilities
Accounts payable and accrued liabilities, Note 6 2,770,676 1,020,997 School taxes payable, Note 7 982,294 496,366 Deferred contributions, Note 8 5,747,610 9,217,650 Deposits held 207,099 155,784 Landfill closure liability, Note 9 1,185,127 1,172,597 Long-term debt, Note 10 3,077,047 3,198,399 Total Liabilities 13,969,853 15,261,793
Net Financial Assets (Debt) $ 2,658,858 $ 1,309,502
Contingent Liabilities, Note 16
Non-Financial Assets
Prepaid expenditure $ 49,883 $ 56,132 Inventory held for use 113,102 114,719 Tangible capital assets, Note 12 General fund 32,037,583 29,610,486 Utility fund 16,831,981 15,705,667 Total Non-Financial Assets DRAFT $ 49,032,549 $ 45,487,004
Accumulated Surplus, Note 13 $ 51,691,407 $ 46,796,506
4 TOWN OF HAY RIVER Statement II Consolidated Statement of Operations and Surplus
For the year ended December 31, 2013
Schedule Budget 2013 2012 (unaudited)
Revenue Property taxes 4 $ 4,813,769 $ 4,821,571 $ 4,801,704 Sales of services 4 638,205 700,832 497,859 Other revenue from own sources 4 535,126 570,132 514,129 Government transfers for operating 5 2,067,475 2,124,058 2,010,600 Government transfers for water and sewer 2 330,267 341,034 330,003 Water and sewer revenues 2 1,823,129 1,939,593 2,026,846 Land sales, lease and development 3 300,123 338,755 313,955 Total Revenue 10,508,094 10,835,975 10,495,096
Expenses General government 6 1,831,865 1,640,664 1,574,740 Protective services 7 1,018,100 781,042 761,946 Transportation and public works 8 2,115,193 2,311,871 2,501,236 Environmental and public health services 9 525,650 575,932 437,888 Planning and development 10 403,050 355,597 194,668 Recreational and cultural 11 2,979,045 2,947,330 2,865,689 Fiscal and valuation 12 496,000 483,671 583,608 Water and sewer expenses 2 2,973,193 2,553,232 2,773,942 Land development 3 81,778 84,880 90,935 Total Expenditures 12,423,874 11,734,219 11,784,652 Annual surplus (deficit), before the undernoted (1,915,780) (898,244) (1,289,556)
Other revenue (expenditure) Net government transfers for capital 5 4,714,622 5,868,533 3,344,280 Provision for landfill closure - - (675,574) Gain (loss) on disposal of capital assets - (75,388) 8,653 4,714,622 5,793,145 2,677,359 Annual Surplus (Deficit) DRAFT $ 2,798,842 $ 4,894,901 $ 1,387,803 Accumulated surplus, beginning of year 46,796,506 46,796,506 45,408,703 Accumulated surplus, end of year $ 49,595,348 $ 51,691,407 $ 46,796,506
5 TOWN OF HAY RIVER Consolidated Statement of Changes in Net Financial Assets (Debt) Statement III
For the year ended December 31, 2013
Budget 2013 2012 (unaudited)
Annual Surplus (Deficit) $ 2,798,842 $ 4,894,901 $ 1,387,803
Amortization expense 2,049,500 2,020,752 1,997,113 Acquisition of tangible capital assets (4,714,622) (5,920,560) (3,461,088) Projects transferred from work in progress - 271,009 - (Gain) loss on disposal of capital assets - 75,388 (8,653) Proceeds on disposal of tangible capital assets - - 12,000 Change in prepaid expenses - 6,249 (3,745) Change in inventory held for use - 1,617 (4,057) Increase (decrease) in net financial assets 133,720 1,349,356 (80,627)
Net financial assets (debt), beginning of year 1,309,502 1,309,502 1,390,129
Net financial assets (debt), end of year $ 1,443,222 $ 2,658,858 $ 1,309,502
DRAFT
6 TOWN OF HAY RIVER Statement IV Consolidated Statement of Cash Flows
For the year ended December 31, 2013
2013 2012
Operating Activities Annual Surplus (Deficit) $ 4,894,901 $ 1,387,803 Non-cash charges to operations: Amortization expense 2,020,752 1,997,113 (Gain) loss on disposal of capital assets 75,388 (8,654) Projects transferred from work in progress 271,009 - Change in landfill closure estimate - 675,574 Provision for landfill closure 12,530 - 7,274,580 4,051,836 Change in non-cash working capital balances: Municipal taxes receivable (29,154) (5,224) Accounts receivable (665,643) 27,999 Land inventory for resale (149,155) 299,352 Accounts payable and accrued liabilities 1,749,679 (100,177) School taxes payable 485,928 (107,038) Deferred contributions (3,470,040) (947,955) Deposits held 51,315 17,278 Prepaid expenditure 6,249 (3,744) Inventory held for use 1,617 (4,057) Net change in cash from operations 5,255,376 3,228,270
Financing Activities Principal repayment of long-term debt (121,352) (115,524) Proceeds of long-term debt - - Net change in cash from financing activities (121,352) (115,524)
Capital Activities Purchase of tangible capital assets (5,920,560) (3,461,087) Proceeds on disposal of tangible capital assets - 12,000 Net change in cash from investingDRAFT activities (5,920,560) (3,449,087) Increase (decrease) in cash during the year (786,536) (336,341)
Bank accounts, opening 15,443,511 15,779,852 Bank accounts, closing $ 14,656,975 $ 15,443,511
7 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 1. Significant Accounting Policies
The financial statements of the Town of Hay River are the representations of management prepared in accordance with generally accepted accounting principles for local governments established by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. Significant aspects of the accounting policies adopted by the Town of Hay River are as follows:
Reporting Entity
The financial statements reflect the assets, liabilities, revenues and expenditures, changes in fund balance and change in financial position of the reporting entity.
The Town of Hay River receives significant funding from the Government of the Northwest Territories in the form of operating grants and capital grants. Administration is of the opinion that discontinuance of funding would significantly disrupt operations.
Fund Accounting
The accounts of the Town are maintained in accordance with fund accounting procedures. The various operations of the Town are segregated into the following funds:
General Operating Fund Utility Operating Fund Land Development Fund
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 DRAFT Government transfers are the transfer of monetary assets or tangible capital assets from a government for which the government making the transfer does not:
- receive any goods or services directly in return; - expect to be repaid in future; or - expect a direct financial return
Operating transfers are recognized as revenue in the period in which the events giving rise to the transaction occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be determined.
8 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 1. Significant Accounting Policies (continued)
Government Transfers (continued)
Capital transfers or transfers of tangible capital assets are initially recognized as deferred capital contributions and subsequently recognized as revenue when the related tangible capital assets are purchased, constructed or the eligible expense is incurred
Financial Instruments
Cash and receivables, and current liabilities are recorded at approximate fair market value due to their short term maturities.
Inventory for Resale
Land inventory is stated at the lower of cost or net realizable value where cost is determined on an average basis. Cost includes purchase price, survey costs and all development costs but excludes debenture interest. Related development costs incurred to provide infrastructure such as water and wastewater services, roads, sidewalks and street lighting are recorded as tangible capital assets under the respective function.
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 (debt) for the year. DRAFT
9 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 1. Significant Accounting Policies (continued)
Tangible Capital Assets
Tangible capital assets are recorded at the net book value (cost less accumulated amortization) on the statement of financial position. Cost includes all amounts directly attributable to acquisition, construction, development or betterment of the asset. The assets are amortized over their estimated useful lives at the following rates:
Asset Method Rate Land held for town use Not amortized Works of Art Not amortized Buildings Straight line 15-50 years Linear Infrastructure Straight line 10-75 years Computer Equipment Straight line 3 years IT Infrastructure Straight line 5 years Furniture and Fixtures Straight line 10 years Operating Equipment Straight line 10 years Mobile Equipment Declining Balance 24%
The full amount of the annual amortization is charged in the year of acquisition and none in the year of disposal. Assets under construction are not amortized until the asset is available for productive use.
Donated assets are capitalized and recorded at their estimated fair market value upon acquisition. Certain capital assets for which the historical cost information is not available have been recorded at current fair market value discounted by a relevant inflation factor.
Work-in-Progress
Work-in-progress represents expenditures incurred on projects not complete at the end of the year.
Leases
Leases are classified as capital or operating leases. Leases which transfer substantially all of the benefits and risks incidental to ownershipDRAFT 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.
Investment in Tangible Capital Assets
Investment in Tangible Capital Assets represents the Town's net investment in its total capital assets, after deducting the portion financed by third parties through debenture, long-term capital borrowings and other capital liabilities.
School Taxes
School taxes are collected by the Town on behalf of the Government of the Northwest Territories. These taxes are payable to the Government of the Northwest Territories upon collection from taxpayers.
10 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 1. Significant Accounting Policies (continued)
Deferred Revenue
Deferred revenue consists mainly of government transfers for which the events giving rise to the transfer have not yet occurred. The deferred revenue will be recognized in the financial statement as revenue in the period in which the related expenses are incurred.
Liability for Landfill Closure and Post-Closure Costs
The Town is required to fund the closure of its landfill site and provide for post-closure care of the facility. Closure and post-closure activities include the final clay cover, landscaping, as well as surface and ground water monitoring, leachate control, and visual inspection. The liability is determined using the estimated total closure costs adjusted for the remaining capacity of the site and the estimated remaining landfill life.
Use of Estimates
The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditure during the period. Where measurement uncertainty exists, the financial statements have been prepared within reasonable limits of materiality. Actual results could differ from those estimates.
Segmented Information
The Town of Hay River segments its operations for financial reporting purposes based upon areas of managerial responsibility. This information is provided in schedule 6 through schedule 12. DRAFT
11 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 2. Cash
2013 2012
Unrestricted Operating account $ 3,494,170 $ (270,446) Internally restricted General fund reserve account 2,405,274 1,591,989 Utility fund reserve account 2,980,792 2,254,726 Externally restricted Gas tax account 1,621,659 $ 2,186,900 Build Canada Fund account - 2,173,868 Community Public Infrastructure account 4,155,080 7,506,474 $ 14,656,975 $ 15,443,511
Note 3. Municipal Taxes Receivable
2013 2012
Current taxes and grant in lieu receivable $ 195,616 $ 170,517 Arrears taxes 156,445 130,930 352,061 301,447
Allowance for doubtful collection (45,381) (23,921) $ 306,680 $ 277,526
Note 4. Accounts Receivable
2013 2012 General accounts receivable $ 273,592 $ 136,769 Utility system receivable 139,428 196,437 Ambulance receivable DRAFT 185,913 143,670 Lease fees receivable 19,298 28,597 Gas tax funding receivable 507,811 - 1,126,042 505,473
Allowance for doubtful collection (146,126) (114,664) 979,916 390,809
Goods and services tax refundable 179,119 102,583 $ 1,159,035 $ 493,392
12 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 5. Supplementary Information
Amounts owed to the Town which are considered doubtful of collection have been recorded as bad debts. The provision for (recovery of) bad debts is comprised of: 2013 2012
General Operating Fund: Property taxes $ 16,460 $ 11,952 Other 2,724 15,183 $ 19,184 $ 27,135
Note 6. Accounts Payable and Accrued Liabilities
2013 2012
Trade accounts payable $ 2,630,697 $ 880,409 Due to GNWT (payroll tax) 1,670 1,670 Accrued vacation pay and banked time 138,309 138,917 $ 2,770,676 $ 1,020,996
Note 7. School Tax Payable
2013 2012 Balance consists of: 2013 levy $ 547,282 $- 2012 levy 424,603 478,287 2011 and prior levy 10,409 18,079 $ 982,294 $ 496,366
School tax levies are recorded as payable in the year they are assessed and are to be remitted to the GNWT as they are collected.DRAFT
13 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 8. Deferred Contributions
2013 2012
Gas Tax Funding, Schedule 17 $ 1,554,508 $ 2,043,517 Community Public Infrastructure Funding, Schedule 18 4,068,102 5,945,231 Community Capacity Building Funding, Schedule 19 - - Build Canada Funding, Schedule 20 - 1,103,902 Public Transit Funding, Schedule 21 125,000 125,000 $ 5,747,610 $ 9,217,650
Note 9. Landfill Closure Liability
The Town is required to estimate future closure and post-closure costs for its landfill site. The estimated 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 5.25% and inflation of 2.06%.
The accrued liability portion is based on the capacity used at year end compared to the estimated total capacity. The remaining estimated life of the landfill is 9 years and of the total capacity approximately 8.7% remains.
2013 2012 Estimated closure costs 518,030 518,030 Estimated post-closure costs 780,149 780,149 Estimated total liability 1,298,179 1,298,179
Estimated capacity used 91.3% 90.3% Accrued liability 1,185,127 1,172,597
Note 10. Long-Term Debt DRAFT Principal Principal Issue MaturityRate Balance Balance Description Date Date % Payment 2013 2012
Aquatic Facility - RBC 2/23/11 2/25/16 4.93 *$ 23,021 3,077,047 3,198,399 $ 3,077,047 $ 3,198,399
* Principal and interest included, payable monthly
14 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 11. Long-Term Debt (continued)
Principal and interest payments due within the next five years:
Principal Interest Total 2014 $ 127,372 $ 140,434 $ 267,806 2015 133,423 134,383 267,806 2016 139,761 128,045 267,806 2017 146,400 121,406 267,806 2018 153,355 114,451 267,806 Subsequent 2,376,736 677,743 3,054,479 $ 3,077,047 $ 1,316,462 $ 4,393,509
Note 12. Tangible capital assets
2013 2012 Accumulated Net Net Cost Amortization Book Value Book Value General Fund: Linear Structures $ 14,179,993 $ 5,094,447 $ 9,085,546 $ 9,643,742 Buildings 20,088,660 7,118,562 12,970,098 13,446,465 Machinery and Equipment 6,313,684 5,176,090 1,137,594 1,099,169 Work in progress 6,565,652 - 6,565,652 3,029,996 Land held for town use 2,222,659 - 2,222,659 2,335,080 Art Work 56,034 - 56,034 56,034 $ 49,426,682 $ 17,389,099 $ 32,037,583 $ 29,610,486
Utility Fund: Water and Sewer System $ 14,934,837 $ 3,426,057 $ 11,508,780 $ 11,539,707 Buildings 5,897,610 2,038,802 3,858,808 3,979,321 Land 1,000 - 1,000 1,000 Vehicles 359,529 294,327 65,202 25,536 Heavy Equipment 33,741 31,636 2,105 2,632 Furniture & Equipment DRAFT 1,558,642 1,526,808 31,834 35,581 Work in progress 1,364,252 - 1,364,252 121,890 $ 24,149,611 $ 7,317,630 $ 16,831,981 $ 15,705,667 Total $ 73,576,293 $ 24,706,729 $ 48,869,564 $ 45,316,153
Land held for town use has been recorded at the cost incurred to acquire the land. A significant portion of the balance is comprised of land transferred from other governments which was transferred at a nominal value. This constitutes a departure from Canadian Public Sector Accounting Standards as the cost of contributed assets are required to be recorded at their fair market value, or estimate thereof, at the date of contribution.
15 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 13. Accumulated Surplus
Accumulated surplus consists of restricted and unrestricted amounts and equity in tangible capital assets as follows:
2013 2012
Accumulated Surplus per Statement of Financial Position $ 51,691,407 $ 46,796,506
Invested in Tangible Capital Assets General Fund 28,960,536 26,412,087 Utility Fund 16,831,981 15,705,667 45,792,517 42,117,754 Internally restricted reserves Reserve for Mobile Equipment Replacement 914,726 822,483 Reserve for Management Training 19,862 19,721 Reserve for Recreation Infrastructure 91,332 90,689 Reserve for Municipal Infrastructure 674,736 669,989 Reserve for Computer Systems 7,380 11,524 Reserve for Landfill 156,780 155,677 Reserve for Recreation Center Replacement 135,784 104,811 Reserve for Utility Infrastructure 2,630,171 2,590,605 4,630,771 4,465,499 Unappropriated surplus (deficit) General fund (1,722,554) (2,887,433) Utility fund (831,106) (506,784) Land development fund 3,861,345 3,607,470 1,307,685 213,253 $ 51,730,973 $46,796,506 DRAFT
16 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 14. Reserves and Deferred Contributions
The Financial Administration By-law requires that funds accumulated in reserves are deposited into the General reserve bank account. Interest earned on the account is credited to the appropriate reserve.
Account Cash Excess Balance Balance Receivable (Shortfall)
Reserves Mobile Equipment $ 914,726 $ Management Training 19,862 Recreation Infrastructure 91,332 Municipal Infrastructure 674,736 Computer System 7,380 Landfill 156,780 Recreation Center Replacement 135,784 2,000,600 2,405,274 - 404,674
Utility Infrastructure 2,630,171 2,980,792 - 350,621 $ 4,630,771 $ 5,386,066 $ - $ 755,295 Deferred Contributions, Note 8 Gas Tax Funding 1,554,508 1,621,659 507,811 574,962 Community Public Infrastructure 4,068,102 4,155,080 - 86,978 5,622,610 5,776,739 507,811 661,940 $ 10,253,381 $ 11,162,805 $ 507,811 $ 1,417,235
Note 15. Operating Leases and Rental Payments
The Town has entered into agreements extending beyond one year for the use of equipment and various service contracts which require periodic payments. The minimum payments under existing agreements over the next five years are as follows: For the year ending DecemberDRAFT 31: 2014 $ 325,888 2015 $ 325,888 2016 $ 185,850
17 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 16. Contingent liabilities
The Town participates in the Northern Communities Insurance Program. Under this program the Town 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.
The Town has a contingent liability with respect to its town hall. Subsequent to year end, the town hall closed due to air quality concerns. At the financial statement date, alternatives for remediation are being investigated; however, no liability has been recorded in the financial statements as the cost to put the building back into service is not determinable. Any costs associated with the remediation will be accounted for as expenses in the period in which they occur.
Note 17. Pension Benefits
Employees of the Town can participate in the Desjardins Financial Securities pension plan. This program is a defined contribution program providing pension plan benefits. Members, if they choose to be part of the pension plan, are required to make contributions ranging from 5% to 7.5% depending on the position held. The Town of Hay River is required to make matching contributions of this amount. Employees are permitted to make additional voluntary contributions up to the maximum combined amount of 18% of their salary. Total contributions by the Town to the program in 2013 were $84,977 (2012 - $89,045), which were expensed as incurred.
Note 18. Financial instruments
The Town's financial instruments consist of cash, accounts receivable accounts payable and accrued liabilities, and long-term debt. It is managements opinion that the town is not exposed to significant interest or currency risks arising from this financial instruments.
The town is subject to credit risk with respect to taxes and grants in place of taxes receivables and trade and other receivables. Credit risk arises from the possibility that taxpayers and entities to which the town provides services may experience financial difficulty and be unable too fulfill their obligations. The large number and diversity of taxpayers and customers minimizes the credit risk. Unless otherwise noted, the DRAFTcarrying value of the financial instrument approximates fair value. Note 19. Budget
The budgeted figures are those approved by Council and are unaudited.
18 TOWN OF HAY RIVER Notes to the Financial Statements
December 31, 2013
Note 20. Reclassification
Certain prior year's figures have been reclassified to agree with current year presentation.
Note 21. Reconciliation of operating results to budgeting system
The 2013 budget, prepared by the Town of Hay River, reflects all municipal activities including debt repayments and reserves for future use. The reconciliation below is provided to encompass these items and is provided for information purposes only.
Budget (unaudited) 2013 2012
General fund: Excess of revenue over expenditures per financial statements $ 3,400,294 $ 4,913,631 $ 1,581,876
Other items affecting surplus Purchase of tangible capital assets (2,380,000) (4,352,307) (3,370,397) Amortization 1,494,800 1,575,071 1,561,544 Debenture (repayment) (120,000) (121,353) (115,524) Allocation to reserves (503,339) (73,989) (426,435) Transfer (to) utility fund (1,891,600) - - Results of operations 155 1,941,053 (768,936)
Budget 2013 2012 (unaudited)
Utility fund: Excess of revenue over expenditures per financial statements $ (819,797) $ (272,605) $ (417,093)
Other items affecting surplus DRAFT Purchase of tangible capital assets (1,100,000) (1,568,253) (90,690) Amortization 539,000 445,681 435,568 Allocation to reserve for utility infrastructure (506,287) 39,566 8,400 Allocation (to) from mobile equipment reserve (7,402) 12,151 - Transfer (to) from general fund 1,891,600 - - Results of operations $ (2,886) $ (1,343,460) $ (63,815)
19 TOWN OF HAY RIVER Schedule 1 General Fund Schedule of Operations and Surplus
For the year ended December 31, 2013
2013 2013 2012 Schedule Budget Actual Actual
Revenue Property taxes 4 $ 4,813,769 $ 4,821,571 $ 4,801,704 Sales of services 4 638,205 700,832 497,859 Other revenue from own sources 4 535,126 570,132 514,129 Government transfers for operating 5 2,067,475 2,124,058 2,010,600 Total Revenue 8,054,575 8,216,593 7,824,292
Expenditure General government 6 1,831,865 1,640,664 1,574,740 Protective services 7 1,018,100 781,042 761,946 Transportation and public works 8 2,115,193 2,311,871 2,501,236 Environmental and public health services 9 525,650 575,932 437,888 Planning and development 10 403,050 355,597 194,668 Recreational and cultural 11 2,979,045 2,947,330 2,865,689 Fiscal and valuation 12 496,000 483,671 583,608 Total Expenditure 9,368,903 9,096,107 8,919,775 Excess revenues over expenses before the undernoted (1,314,328) (879,514) (1,095,483)
Other revenue (expenditure) Government transfers for capital 5 4,714,622 5,868,533 3,344,280 Adjustment to landfill closure expense - - (675,574) Gain (loss) on disposal of capital assets - (75,388) 8,653 4,714,622 5,793,145 2,677,359 Excess (Deficiency of ) revenues over expenses $ 3,400,294 $ 4,913,631 $ 1,581,876 DRAFT
20 TOWN OF HAY RIVER Schedule 2 Utility Fund Schedule of Operations and Surplus
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
Revenue Water and sewer billings $ 1,800,000 $ 1,905,056 $ 1,990,649 Government transfers for water and sewer operations 330,267 341,034 330,003 Frontage taxation 3,129 3,129 3,129 Interest on reserves 13,000 22,937 24,123 Other revenues 2,000 3,078 3,803 Maintenance service 5,000 5,393 5,142 Gain (loss) on disposal of tangible capital assets - - - 2,153,396 2,280,627 2,356,849
Expenditure Overhead charges from General Fund Administration 214,687 214,687 299,544 Public Works - - 51,821 Salaries and benefits 420,455 361,674 368,862 Transmission and distribution 753,001 534,402 643,445 Trucked water delivery service 1,010,000 969,942 946,232 Trucked sewage subsidy 36,050 30,590 28,470 Amortization of tangible capital assets 539,000 441,937 435,568 2,973,193 2,553,232 2,773,942 Net revenue $ (819,797) $ (272,605) $ (417,093)
DRAFT
21 TOWN OF HAY RIVER Schedule 3 Land Development Fund Schedule of Operations and Surplus
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
Revenue Land sales $ - $ 10,747 $- Land leases 299,423 322,606 305,744 Legal and transfer fees recovered 500 2,702 2,629 Interest and penalties 200 2,700 5,582 Total Revenue 300,123 338,755 313,955
Expenditure Cost of land sold - 3,604 - Land leases 36,060 36,060 35,310 Overhead charges from General Fund Administration 35,818 35,818 28,021 Public Works - - 9,341 Professional fees 7,500 8,846 8,790 Search fees and sundry 2,400 552 145 Uncollectible Interest and penalties - - 9,328 Total Expenditure 81,778 84,880 90,935
Net revenue $ 218,345 $ 253,875 $ 223,020
DRAFT
22 TOWN OF HAY RIVER Schedule 4 General Fund Schedule of Revenue
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
Property taxes $ 4,656,516 $ 4,694,082 $ 4,656,519 Grants in Lieu of Taxes Federal 153,219 149,830 150,011 Territorial 570,127 571,224 570,127 NWT Power Corporation 50,861 40,714 40,603 Less school taxes (636,954) (652,397) (633,014) Discounts allowed on school tax 20,000 18,118 17,458 $ 4,813,769 $ 4,821,571 $ 4,801,704
Sales of Services Recreation - Pool $ 93,750 $ 109,022 $ 96,156 - Community center 203,599 206,142 177,656 - Curling club rental 27,006 21,156 22,507 - Ballpark rental 6,600 6,537 6,306 - Other 85,500 16,596 30,315 Collection fee school taxes 5,000 5,000 5,000 Dump tipping fees 18,200 31,284 15,000 Ambulance 146,650 136,092 139,377 Insurance proceeds - 126,350 - Other 51,900 42,653 5,542 $ 638,205 $ 700,832 $ 497,859
Other Revenue From Own Sources Franchise fee $ 265,000 $ 274,422 $ 265,398 Licenses and permits 90,000 105,498 107,303 Fines and dog pound fees 2,500 5,823 4,300 Interest and penalties 152,000 133,137 109,356 Insurance proceeds and programsDRAFT 25,626 51,252 27,772 $ 535,126 $ 570,132 $ 514,129
23 TOWN OF HAY RIVER Schedule 5 General Fund Schedule of Revenue
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
Government Transfers General - GNWT Operating and Maintenance Block Funding $ 1,902,000 $ 1,945,000 $ 1,902,000 Sport and Recreation - 29,000 29,000 Ground Ambulance 40,000 33,333 40,000 Fire department revenue 5,000 5,000 Community financial services - 20,899 Road construction - 27,000 SEED - Community Economic Development - 6,276 - SEED - Community Economic Development (Plans & Plannin 8,000 - 5,000 Advancing Local Government Administrators Program - - 20,000 Territorial Farmers Association - 39,024 Other Miscellaneous Grants 102,875 326 - General - Federal Summer Employment 9,600 10,300 9,600 Celebrate Canada - 7,900 5,000 2,067,475 2,124,058 2,010,600 Transfers (to) from deferred revenues Other Miscellaneous Grants - - - $ 2,067,475 $ 2,124,058 $ 2,010,600
Utility - GNWT Water and Sewer Block Funding $ 330,267 $ 341,034 $ 330,003
Capital - GNWT Community Public Infrastructure Funding $ 1,260,000 $ 1,260,000 $ 1,260,000 Gas Tax 1,015,622 1,015,622 1,015,622 Build Canada - - - DRAFT 2,275,622 2,275,622 2,275,622
Interest earned on deferred contributions Community Public Infrastructure Funding 45,000 88,605 78,686 Gas Tax 5,000 26,948 16,934 Build Canada 9,000 7,318 25,458 59,000 122,871 121,078
Transfers (to) from deferred contributions Community Public Infrastructure Funding 926,100 1,877,129 (214,697) Gas Tax 350,000 489,009 (941,866) Build Canada 1,103,900 1,103,902 1,046,631 Community Capacity Building Fund - - 1,057,512 2,380,000 3,470,040 947,580
$ 4,714,622 $ 5,868,533 $ 3,344,280
24 TOWN OF HAY RIVER Schedule 6 General Fund Schedule of Expenditure
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
General Government Mayor's indemnity $ 43,600 $ 43,584 $ 43,826 Councilors' indemnity 85,500 84,852 69,408 Boards and agencies indemnities and meeting expenses 1,000 200 200 Administration - salaries and benefits 940,739 805,061 903,432 Administration - other 430,450 437,085 282,276 Vehicle - - - Postage 5,000 4,509 4,712 Xerox 9,500 10,202 8,396 Professional services 119,750 172,689 180,483 Taxation 5,688 3,206 4,029 Insurance 85,871 79,340 79,811 Lease fees - - - Town hall operations 82,250 83,659 80,865 Town hall building maintenance 35,522 37,784 16,821 Town hall equipment maintenance 5,000 1,048 7,967 Personnel interviews, advertising, memberships and publications - - 31,071 Election expense - - - Conventions, delegations and public relations 45,000 16,051 48,770 Grants administered by Town - - 61,672 Amortization of tangible capital assets 136,500 60,899 78,566 2,031,370 1,840,169 1,902,305 Deduct overhead charged to: Utility Fund (174,687) (174,687) (299,544) Land Development Fund (24,818) (24,818) (28,021)
$ 1,831,865 $ 1,640,664 $ 1,574,740 DRAFT
25 TOWN OF HAY RIVER Schedule 7 General Fund Schedule of Expenditure
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual Protective Services Insurance $ 14,400 $ 11,493 $ 11,744 Bylaw enforcement 91,190 69,463 88,063 Bylaw vehicle maintenance 3,000 415 2,498 Fire protection 385,683 364,846 367,638 Fire department vehicle maintenance 34,600 17,582 24,217 Fire department building maintenance 1,000 1,671 2,764 Emergency response training center 25,700 16,056 14,486 Civil emergency 47,981 11,176 26,455 Ambulance 77,800 64,918 49,912 Animal and pest control 80,946 76,000 70,652 Amortization of tangible capital assets 255,800 147,422 103,517 $ 1,018,100 $ 781,042 $ 761,946
DRAFT
26 TOWN OF HAY RIVER Schedule 8 General Fund Schedule of Expenditure
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual Transportation and Public Works Public works Administration $ 425,071 $ 407,180 $ 396,462 Vehicle maintenance 7,000 564 56 Equipment operations administration - - - Vehicle operations maintenance 134,616 158,485 144,827 Town garage Yards 95,864 90,752 90,818 Building maintenance 23,761 29,604 15,471 Equipment maintenance - 9,442 - Carpenter shop 65,475 64,265 65,057 Vehicle maintenance 1,206 452 675 Building maintenance 1,500 937 863 Equipment maintenance 500 - 95 Roads - - - General roads 36,700 36,359 48,087 Summer roads 315,028 226,646 474,818 Roads brushing 19,142 14,635 14,145 Sidewalks 9,528 10,442 5,706 Drainage 42,170 22,446 19,382 Winter roads 227,110 237,485 227,102 Street lighting 162,000 192,307 156,270 Parking - - - Road safety 37,022 18,613 36,674 Marine world - - - Amortization of tangible capital assets 562,500 842,257 865,890
2,166,193 2,362,871 2,562,398 Deduct overhead charged to: Utility Fund (40,000) (40,000) (51,821) Land Development Fund (11,000) (11,000) (9,341) DRAFT$ 2,115,193 $ 2,311,871 $ 2,501,236
27 TOWN OF HAY RIVER Schedule 9 General Fund Schedule of Expenditure
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
Environmental and Public Health Services Sanitation operations $ 353,000 $ 354,013 $ 320,473 Landfill Maintenance 104,747 102,587 60,222 Amortization of tangible capital assets 15,700 6,175 6,231 Landfill accretion expense - 12,530 - Annual town clean-up 19,261 55,986 9,546 Cemetery Maintenance 22,142 9,611 10,170 Amortization of tangible capital assets 10,800 35,030 31,246 $ 525,650 $ 575,932 $ 437,888
TOWN OF HAY RIVER Schedule 10 General Fund Schedule of Expenditure
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
Planning and Development Planning and Zoning $ 140,997 $ 112,913 $ 110,819 Tourism 115,033 97,988 57,917 Building and yard maintenance 10,558 6,688 2,870 Programs - - - Amortization of tangible capital assets 9,200 7,897 8,029 Economic development 127,262 130,111 15,033 Start Your EnginesDRAFT - - - $ 403,050 $ 355,597 $ 194,668
28 TOWN OF HAY RIVER Schedule 11 General Fund Schedule of Expenditure
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
Recreational and Cultural Recreation administration $ 342,580 $ 331,746 $ 328,917 Insurance - - - Vehicle maintenance 4,164 6,448 6,204 Recreation center operations 534,125 665,056 535,475 Building maintenance 38,261 77,686 80,478 Mechanical maintenance 43,292 33,297 25,999 Swimming pool operations 610,887 615,731 670,754 Building maintenance 15,000 19,177 19,046 Mechanical maintenance 14,000 10,315 71,948 Curling club operations 91,000 92,002 89,930 Building maintenance 6,028 3,329 3,497 Sports fields 33,572 28,551 18,615 Parkland 142,510 73,066 124,817 Library 160,000 160,000 177,800 Museum - - - Community television and other services 207,064 149,527 73,064 Recreation programs 216,562 206,004 171,079 Amortization of tangible capital assets 520,000 475,395 468,066 $ 2,979,045 $ 2,947,330 $ 2,865,689
TOWN OF HAY RIVER Schedule 12 General Fund Schedule of Expenditure
For the year ended December 31, 2013
2013 2013 2012 DRAFTBudget Actual Actual Fiscal and Valuation Discount on taxes $ 157,000 $ 134,329 $ 146,134 Debenture interest 161,000 168,758 168,757 Bank charges 6,000 4,639 3,851 Senior/disabled tax exemptions 167,000 156,762 151,439 Write-down of land inventory - - 86,291 Provision for (recovery of) bad debts, Note 5 5,000 19,183 27,136 $ 496,000 $ 483,671 $ 583,608
29 TOWN OF HAY RIVER Schedule 13 Schedule of Reserves
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Reserve for Mobile Equipment Replacement Balance, beginning of year $ 745,482 $ 745,482 $ 768,570 Current year appropriation - General Fund - 157,090 94,766 - Utility Fund - 12,154 8,400 Proceeds from sale of equipment - General Fund - - 12,000 - Utility Fund - - - Transfer from reserve for current year expenditure - General Fund - - (150,012) - Utility Fund - - 11,758 Balance, end of year $ 745,482 $ 914,726 $ 745,482 Reserve for Management Training Balance, beginning of year $ 19,721 $ 19,721 $ 19,386 Current year appropriation - 141 335 Transfer from reserve for current year expenditure - - - Balance, end of year $ 19,721 $ 19,862 $ 19,721 Reserve for Recreation Infrastructure Balance, beginning of year $ 90,689 $ 90,689 $ 77,111 Current year appropriation - 643 13,578 Less debenture repayments - - - Transfer from reserve for current year expenditure - - - Balance, end of year $ 90,689 $ 91,332 $ 90,689 Reserve for Municipal Infrastructure Balance, beginning of year $ 669,989 $ 669,989 $ 646,881 Current year appropriation - 4,747 23,108 Transfer from reserve for current year expenditure - - - Balance, end of year $ 669,989 $ 674,736 $ 669,989 Reserve for Computer Systems Balance, beginning of yearDRAFT $ 11,524 $ 11,524 $ 1,513 Current year appropriation - 81 10,011 Transfer from reserve for current year expenditure - (4,225) - Balance, end of year $ 11,524 $ 7,380 $ 11,524 Reserve for Landfill Balance, beginning of year $ 155,677 $ 155,677 $ 152,812 Current year appropriation - 1,103 2,865 Transfer from reserve for current year expenditure - - - Balance, end of year $ 155,677 $ 156,780 $ 155,677 Reserve for Recreation Center Replacement Balance, beginning of year $ 104,811 $ 104,811 $ 67,086 Current year appropriation - 30,973 37,725 Balance, end of year $ 104,811 $ 135,784 $ 104,811
30 TOWN OF HAY RIVER Schedule 14 Schedule of Expenditures by Object
For the year ended December 31, 2013
2013 2013 2012 Budget Actual Actual
Salaries, wages and benefits $ 3,898,642 $ 3,693,451 $ 3,630,394 Contracted and general services 9,960,171 3,643,942 3,504,306 Materials, goods and utilities 2,461,153 2,187,236 2,972,053 Interest on long-term debt 281,000 168,75 6 168,757 Provision for allowances 5,000 19,18 5 113,426 Grants - - 61,672 Bank charges and interest 6,025 4,639 3,852 Amortization of tangible capital assets 2,049,500 2,017,010 1,997,113 $ 18,661,491 $ 11,734,219 $ 12,451,573
DRAFT
31 TOWN OF HAY RIVER Schedule 15 Schedule of Changes in Accumulated Surplus
December 31, 2013
Investment in General Land Tangible Operating Utility Development Reserves Capital Assets 2013 2012
Excess (Deficiency of) revenue over expenditures $ 4,913,631 $ (272,605) $ 253,875 $ - $ - $ 4,894,901 $ 1,387,803
Net interfund transfers Amortization 2,020,752 - - - (2,020,752) - - Disposals of tangible capital assets 346,397 - - - (346,397) - - Purchase of tangible capital assets (5,920,560) - - - 5,920,560 - - Debenture (repayment) (121,352) - - - 121,352 - - Allocations to Reserves (73,989) (51,717) - 125,706 - - - Changes in fund balances 1,164,879 (324,322) 253,875 125,706 3,674,763 4,894,901 1,387,803
Accumulated Surplus (Deficit), beginning of year (2,887,433) $ (506,784) $ 3,607,470 $ 4,465,499 $ 42,117,754 46,796,506 45,408,703 Accumulated Surplus (Deficit), end of year $ (1,722,554) $ (831,106) $ 3,861,345 $ 4,591,205 $ 45,792,517 $ 51,691,407 $ 46,796,506
Reserves 2012 Increase Decrease 2013
General Operating Fund $ 1,874,894 $ 129,932 $ (4,226) $ 2,000,600 Utility Operating Fund 2,590,605 39,566 - 2,630,171 $ 4,465,499 $ 169,498 $ (4,226) $ 4,630,771 DRAFT
32 TOWN OF HAY RIVER Schedule 16 Schedule of Tangible Capital Assets December 31, 2013 Accumulated Net Carrying Amortization Amount Accumulated Net Opening Closing Beginning Beginning AmortizationCarrying Balance Additions Disposals Balance of Year of year Deletions Amortization End of Year Amount General Fund
Linear Structures Roads, sidewalks, parking lots $ 10,216,281 $ 71,220 $ - $ 10,287,501 $ 3,158,424 $ 7,057,857 $ - $ 612,466 $ 3,770,890 $ 6,516,611 Recreation facilities 800,458 19,888 - 820,346 250,385 550,073 - 32,293 282,678 537,668 Marine facilities 156,731 - - 156,731 94,038 62,693 - 6,269 100,307 56,424 Land Bio treatment facility 137,550 34,228 - 171,778 21,561 115,989 - 6,174 27,735 144,043 Drainage 2,569,539 111,690 46,690 2,634,539 776,945 1,792,594 14,887 102,580 864,638 1,769,901 Traffic lights 109,098 - - 109,098 44,562 64,536 - 3,637 48,199 60,899 13,989,657 237,026 46,690 14,179,993 4,345,915 9,643,742 14,887 763,419 5,094,447 9,085,546
Buildings Administration 852,200 - - 852,200 528,364 323,836 - 17,044 545,408 306,792 Fire halls 1,145,000 - - 1,145,000 477,065 667,935 - 24,079 501,144 643,856 Generator building 116,400 - - 116,400 37,830 78,570 - 2,910 40,740 75,660 Emergency response training center 240,400 - - 240,400 66,110 174,290 - 6,010 72,120 168,280 Fire training centers 325,100 - - 325,100 125,795 199,305 - 9,289 135,084 190,016 Tourist information 186,600 - - 186,600 85,778 100,822 - 5,045 90,823 95,777 Arena complex 5,946,193 - - 5,946,193 2,932,787 3,013,406 - 125,721 3,058,508 2,887,685 Aquatic facility 7,766,880 - - 7,766,880 970,183 6,796,697 - 194,849 1,165,032 6,601,848 Golf clubhouse 918,800 - - 918,800 321,580 597,220 - 26,446 348,026 570,774 Ski chalet 588,200 - - 588,200 161,755 426,445 - 14,705 176,460 411,740 Public works garages 969,722 - - 969,722 529,097 440,625 - 20,170 549,267 420,455 Carpentry 175,432 - - 175,432 106,965 68,467 - 3,959 110,924 64,508 Land fill 69,600 - - 69,600 69,600 - - - 69,600 - Storage 244,747 - - 244,747 50,504 194,243 - 9,726 60,230 184,517 Staff house 170,000 - - 170,000 29,272 140,728 - 4,853 34,125 135,875 Dog pound 157,400 - - 157,400 59,025 98,375 - 3,935 62,960 94,440 Ball parks 124,372 - - 124,372 47,526 76,846 - 3,648 51,174 73,198 Other 91,614 - - 91,614 42,959 48,655 - 3,978 46,937 44,677 20,088,660 - - 20,088,660 6,642,195 13,446,465 - 476,367 7,118,562 12,970,098
Machinery and Equipment Vehicles 3,170,904 192,750 - 3,363,654 2,733,396 437,508 - 151,261 2,884,657 478,997 Heavy equipment 97,948 - - 97,948 75,383 22,565 - 4,086 79,469 18,479 Office furniture and equipment 661,284 - - 661,284 514,461 146,823 - 33,704 548,165 113,119 Operating Equipment 1,254,195 149,000 - 1,403,195 904,382 349,813 - 85,001 989,383 413,812 Computer Equipment 250,705 4,225 - 254,930 209,209 41,496 - 24,448 233,657 21,273 IT Infrastructure 504,938 27,735 - 532,673 403,974 100,964 - 36,785 440,759 91,914 5,939,974 373,710 - 6,313,684 4,840,805 1,099,169 - 335,285 5,176,090 1,137,594
Work in progress 3,029,996 3,618,351 82,695 6,565,652 - 3,029,996 - - - 6,565,652
Land 142,624 123,220 - 265,844 - 142,624 - - - 265,844 Land in development 2,192,456 - 235,641 1,956,815 - 2,192,456 - - - 1,956,815 2,335,080 123,220 235,641 2,222,659 - 2,335,080 - - - 2,222,659 Art Work 56,034 - - DRAFT 56,034 - 56,034 - - - 56,034 Tangible Capital Assets - General Fund $ 45,439,401 $ 4,352,307 $ 365,026 $ 49,426,682 $ 15,828,915 $ 29,610,486 $ 14,887 $ 1,575,071 $ 17,389,099 $ 32,037,583
Utility Fund Water and Sewer System $ 14,655,419 $ 279,418 $ - $ 14,934,837 $ 3,115,712 $ 11,539,707 $ 1,643 $ 311,988 $ 3,426,057 $ 11,508,780 Buildings 5,897,610 - - 5,897,610 1,918,289 3,979,321 - 120,513 2,038,802 3,858,808 Land 1,000 - - 1,000 - 1,000 - - - 1,000 Vehicles 313,056 46,473 - 359,529 287,520 25,536 - 6,807 294,327 65,202 Heavy Equipment 33,741 - - 33,741 31,109 2,632 - 527 31,636 2,105 Furniture & Equipment 1,558,642 - - 1,558,642 1,523,061 35,581 2,099 5,846 1,526,808 31,834 Work in progress 121,890 1,242,362 - 1,364,252 - 121,890 - - - 1,364,252 Tangible Capital Assets - Utility Fund $ 22,581,358 $ 1,568,253 $- $ 24,149,611 $ 6,875,691 $ 15,705,667 $ 3,742 $ 445,681 $ 7,317,630 $ 16,831,981
Total Tangible Capital Assets $ 68,020,759 $ 5,920,560 $ 365,026 $ 73,576,293 $ 22,704,606 $ 45,316,153 $ 18,629 $ 2,020,752 $ 24,706,729 $ 48,869,564
33 TOWN OF HAY RIVER Schedule 17 Gas Tax Agreement Statement of Revenue, Expenditure and Deferred Contribution
For the year ended December 31, 2013
Cumulative 2009 2010 2011 2012 2013 April 21/06 to Actual Actual Actual Actual Actual December 31/13
Funding Deferred contribution balance, opening $ 344,184 $ - $ 539,179 $ 1,101,651 $ 2,043,517 $ 344,184
Annual Gas Tax allocation 1,036,607 1,015,622 1,015,622 1,015,622 1,015,622 5,099,095 Interest earned 233 - 9,553 16,934 26,948 53,668 1,381,024 1,015,622 1,564,354 2,134,207 3,086,087 5,496,947
Funds Spent Water treatment plant upgrades - - - - 9,800 9,800 Ecoliner - - - - 279,418 279,418 Water/Sewer replacement Wright Crescent - - - 76,433 - 76,433 Upgrade Lift Station #1 - - - 9,792 887,070 896,862 Upgrade Lift Station #2 - - - 4,465 355,291 359,756 Stewart Drive Drainage and Restoration 1,381,024 - 5,039 - - 1,386,063 Woodland Drive Water Main Repairs - 476,443 9,750 - - 486,193 Studney/Poplar Water Main Replacement - - 447,914 - - 447,914 1,381,024 476,443 462,703 90,690 1,531,579 3,942,439
Deferred contribution balance, closing $ - $ 539,179 $ 1,101,651 $ 2,043,517 $ 1,554,508 $ 1,554,508 DRAFT
34 TOWN OF HAY RIVER Schedule 18 Community Public Infrastructure Agreement Statement of Revenue, Expenditure and Deferred Contribution
For the year ended December 31, 2013
Cumulative 2009 2010 2011 2012 2013 April 1/07 to Actual Actual Actual Actual Actual December 31/13
Funding Deferred contribution balance, opening $ 2,329,836 $ 3,591,497 $ 4,858,080 $ 5,730,534 $ 5,945,231 $ 2,329,836
Annual CPI allocation 1,259,640 1,259,640 1,259,640 1,260,000 1,260,000 6,298,920 Interest earned 2,021 6,943 58,755 78,686 88,605 235,010 3,591,497 4,858,080 6,176,475 7,069,220 7,293,836 8,863,766
Funds Spent Fire Hall - - 168,004 395,455 2,440,129 3,003,588 Vale Island Drainage - - 7,643 49,700 33,665 91,008 Ambulance - - - - 159,417 159,417 Engineering surveys - - - - 7,264 7,264 5-ton box truck - - - - 46,473 46,473 Ambulance Supplies - - - - 1,649 1,649 Repeater system - - - - 9,545 9,545 Riding Mowers - - - - 52,892 52,892 Sound system - - - - 15,684 15,684 Line Laser - - - - 8,299 8,299 Pine Point Ball Park - - - 6,420 50,000 56,420 Debenture payment (principal & interest portion) - - - - 276,249 276,249 Landfill improvements - - - 9,115 59,135 68,250 Computer hardware & software - - - 197,870 - 197,870 Storage garage - - - 6,454 - 6,454 Parking lot curbs - - - 2,092 - 2,092 Park Signage - - - 2,111 - 2,111 Downtown Banners - - - 3,466 - 3,466 Fisherman's Wharf improvements - - - 14,732 - 14,732 Visitor Information Centre improvements - - - 20,013 - 20,013 Water treatment plant upgrades - - - 9,100 - 9,100 Drainage master plan - - - 20,682 - 20,682 Dump Truck - - - 134,717 - 134,717 Delancey Estates road chip sealing - - 25,864 - - 25,864 Miron Drive weeping tile - - 28,703 - - 28,703 Trans Canada Trail - - 6,062 22,680 - 28,742 Gord Thompson Park equipment installation - - 3,185 - - 3,185 Don Wright Park drainage - - 8,500 - - 8,500 Aquatic center external stairs - - 27,080 - - 27,080 Recreation center repairs & maintenance - - 5,309 92,361 12,122 109,792 Recreation storage garage - - 16,433 - - 16,433 Fire department equipment - - 19,237 19,587 17,390 56,214 IT servers - - 38,200 - - 38,200 Various furniture and equipment - - 42,975 - 35,821 78,796 Drainage improvements - - - 25,459 - 25,459 Downtown accessibility & beautification - - - 26,686 - 26,686 Tri-Service Park development - - - 19,888 - 19,888 Upgrade golf course road - - 25,819 45,401 - 71,220 Town hall plan - - 6,027 - - 6,027 Downtown survey - - 16,900 - - 16,900 - - 445,941 1,123,989 3,225,734 4,795,664 Deferred contribution balance, closing $ 3,591,497DRAFT$ 4,858,080 $ 5,730,534 $ 5,945,231 $ 4,068,102 $ 4,068,102
35 TOWN OF HAY RIVER Schedule 19 Community Capacity Building Fund Statement of Revenue, Expenditure and Deferred Contribution
For the year ended December 31, 2013
Cumulative 2009 2010 2011 2012 2013 Jul 31/07 to Actual Actual Actual Actual Actual Dec 31/13
Funding Deferred contribution balance, opening $ 1,057,512 $ 1,057,512 $ 1,057,512 $ 1,057,512 $ - $ 1,057,512
Annual allocation ------1,057,512 1,057,512 1,057,512 1,057,512 - 1,057,512
Funds Spent Fire hall Construction - - - 1,057,512 - 1,057,512 - - - 1,057,512 - 1,057,512 Deferred contribution balance, closing $ 1,057,512 $ 1,057,512 $ 1,057,512 $ - $ - $ -
TOWN OF HAY RIVER Schedule 20 Build Canada Funding Statement of Revenue, Expenditure and Deferred Contribution
For the year ended December 31, 2013
Cumulative 2010 2011 2012 2013 Sep 29/10 to Actual Actual Actual Actual Dec 31/13
Funding Deferred contribution balance, opening $ - $ - $ 2,150,533 $ 1,103,902 $-
Annual allocation - 2,127,649 - - 2,127,649 Interest earnedDRAFT - 22,884 25,458 7,318 55,660 - 2,150,533 2,175,991 1,111,220 2,183,309
Funds Spent Fire hall design and construction - - 1,072,089 1,111,220 2,183,309 - - 1,072,089 1,111,220 2,183,309 Deferred contribution balance, closing $ - $ 2,150,533 $ 1,103,902 $ - $-
36 TOWN OF HAY RIVER Schedule 21 Public Transit Funding Statement of Revenue, Expenditure and Deferred Contribution
For the year ended December 31, 2013
Cumulative 2009 2010 2011 2012 2013 Nov 26/07 to Actual Actual Actual Actual Actual Dec 31/13
Funding Deferred contribution balance, opening $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000
Annual allocation ------125,000 125,000 125,000 125,000 125,000 125,000
Funds Spent ------Deferred contribution balance, closing $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000
DRAFT
37 TOWN OF HAY RIVER Schedule 22 Schedule of Honoraria and Travel
For the year ended December 31, 2013
Salaries Honoraria Travel
Mayor Andrew Cassidy $ 29,056 $ 14,528 $ 2,855 Councilors Brad Mapes 8,224 4,112 - Mike Maher 6,577 3,289 - Rodger Candow 6,577 3,289 - Jason Coakwell 6,577 3,289 437 Keith Dohey 6,577 3,289 - Kandis Jameson 6,577 3,289 - Donna Lee Jungkind 6,577 3,289 75 Vince McKay 6,577 3,289 242 $ 83,321 $ 41,662 $ 3,609
DRAFT
38
Town of Hay River Zoning and Building Bylaw Bylaw No. 1812 Schedule 1
6.13 M1 - RESTRICTED INDUSTRIAL 1) General Purpose
To establish a Zone for industrial uses where there will be minimal nuisance and such that the Zone is compatible with any adjacent non-industrial Zone.
2) Permitted Uses
a) Cold Storage Lockers b) Workshops c) Warehousing/ Storage d) Receiving and Distributing Depots e) Wholesale or Retail of Electrical and Plumbing Equipment and Supplies f) Industrial Vehicles, Automobiles, Recreational, Construction and Farm Equipment Sales, Rentals and Service Establishments g) Modular/Manufactured Home and Trailer Construction h) Servicing and Repair Establishments i) Storage and/or Sale of Building Materials, Lumber or Machinery j) Buildings and uses accessory to the above
3) Discretionary Uses
a) Service Stations b) Storage and/or Sale of Bulk Oil, Propane Gas c) Manufacturing, Commercial, Recreational or Public Service uses unlikely to restrict the use of the zone for industry d) Public and Semi-public Uses e) Eating and Drinking Establishments f) Auctioneering Establishments g) Local Utility Services and Installations
BYLAW 1812 ZONING BYLAW 6-52 Town of Hay River Zoning and Building Bylaw Bylaw No. 1812 Schedule 1
h) Detention or Correction Facilities. i) Caretaker Units j) Buildings and uses accessory to the above k) Those uses which, in the opinion of the Development Officer, are similar to the permitted or discretionary uses, and which conform to the general purpose and intent of the Zone.
4) Development Regulations
Lot Dimensions a) Minimum Lot Width i) not less than 30.0 m (99.0 ft.) b) Minimum Lot Depth i) at the discretion of the Development Officer c) Minimum Lot Area i) at the discretion of the Development Officer Building Dimensions d) Lot Coverage i) the maximum lot coverage shall not exceed 60% of the lot area Yard Requirements e) Minimum Front Yard i) not less than 6.0 m (20.0 ft) ii) front yard setbacks must comply with Section 4.4 of this bylaw f) Minimum Rear Yard i) not less than 5.0 m (16.5 ft.) ii) not less than 7.5 m (25.0 ft.) where the rear boundary abuts a residential zone
BYLAW 1812 ZONING BYLAW 6-53