TOWN OF NOBLEFORD

INDICATORS OF FINANCIAL CONDITION For the year ended December 31, 2019 Introduction

A Key Performance Indicator (KPI) is a metric used to evaluate factors that are crucial to the success of an organization. The importance of each KPI may change with time depending on the goals and strategic plans of the organization.

When reviewing KPIs, it is important to not only compare to past performance and desired goals, but to consider industry standards and benchmarks.

The following information has been provided in order to provide you some insight into some important KPIs for your organization.

It is important to review the underlying information of your municipality in order to determine cause and create desired change.

The underlying data for this report was taken from the financial data publicly available found on the Municipal Affairs website.

Comparable municipalities were determined based on a range of 75% to 125% of your population.

1 TOWN OF NOBLEFORD INDICATORS OF FINANCIAL CONDITION For the year ended December 31, 2019

2015 2016 2017 2018 2019

SUSTAINABILITY INDICATORS

Assets to Liabilities This indicator illustrates the extent a 40.00 government finances its operations by issuing 35.00 debt. A ratio higher than one indicates that a government has accumulated surplus and has 30.00 assets greater than debt. A ratio of less than 25.00 one indicates that debt is greater than assets 20.00

and the government has been financing its 15.00 operations by issuing debt. 10.00

5.00

0.00 NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Total assets 14,006,745 14,550,209 15,385,631 16,021,471 17,973,499 Total liabilities 418,757 725,530 887,529 550,347 2,350,700 Assets to liabilities 33.45 20.05 17.34 29.11 7.65 Town Average 7.79 7.69 7.69 7.47 Comparable Town Average 8.53 7.95 7.49 7.54 Comparable Population Average 9.74 9.26 8.90 8.84

Financial assets to liabilities This indicator illustrates the ratio of a 10.00 government's financial assets to its liabilities. 9.00 A result lower than one indicates a net debt 8.00 position and future revenues will be required 7.00 to pay for past transactions. A result higher 6.00 than one indicates net financial assets and 5.00 financial resources are on hand that can 4.00 finance future operations. A trend showing 3.00 increases in net debt or reductions in net 2.00 financial assets may not be sustainable. 1.00 0.00 NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Total financial assets 3,759,116 4,334,415 4,958,894 4,501,539 6,220,962 Total liabilities 418,757 725,530 887,529 550,347 2,350,700 Financial assets to liabilities 8.98 5.97 5.59 8.18 2.65 Town Average 1.30 1.31 1.34 1.33 Comparable Town Average 1.51 1.49 1.43 1.36 Comparable Population Average 1.85 1.88 1.88 1.87

2 TOWN OF NOBLEFORD INDICATORS OF FINANCIAL CONDITION For the year ended December 31, 2019

2015 2016 2017 2018 2019

Current Ratio

The ratio of current assets (cash, temporary 60.00 investments, accounts receivable) to current liabilities (accounts payable, temporary 50.00 borrowings, current repayment obligations on long-term borrowings). This ratio is an 40.00 indication of the governments ability to meet 30.00 short term obligations. 20.00

10.00

0.00 NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Current assets 1,917,157 2,998,992 4,066,071 3,332,445 5,002,154 Current liabilities 57,292 54,490 566,759 254,223 321,320 Assests to liabilities 33.46 55.04 7.17 13.11 15.57 Town Average 4.19 4.24 3.84 4.07 Comparable Town Average 4.67 5.23 5.13 3.97 Comparable Population Average 5.49 6.45 6.16 5.11

Operating expenses to taxable assessment

This indicator provides the trend of 3.50% government spending over time in relation to the growth in the economy. A trend that shows 3.00% total expense is growing at a faster rate than 2.50% the growth in the economy may not be 2.00% sustainable. 1.50%

1.00%

0.50%

0.00% NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Operating expenses 1,312,555 1,320,778 1,510,440 1,616,205 1,716,759 Taxable assessment 115,529,035 123,588,176 120,814,434 134,676,299 138,459,697 Operating expenses to taxable assessment 1.14% 1.07% 1.25% 1.20% 1.24% Town Average 1.79% 1.82% 1.70% 1.84% Comparable Town Average 2.81% 2.75% 2.74% 2.90% Comparable Population Average 2.33% 2.31% 2.31% 2.33%

3 TOWN OF NOBLEFORD INDICATORS OF FINANCIAL CONDITION For the year ended December 31, 2019

2015 2016 2017 2018 2019

FLEXIBILITY INDICATORS

Public debt charges to revenues

This indicator measures public debt charges as 0.08 a percentage of revenues. It illustrates the 0.07 extent to which past borrowing decisions present a constraint on the ability to meet 0.06 financial and service commitments in the 0.05

current period. Specifically, the more a 0.04 government uses revenues to fund debt 0.03 servicing, the less will be available for program spending. 0.02 0.01

0.00 NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Debt servicing 31,794 26,864 26,864 26,864 26,864 Operating revenue 1,177,983 1,188,855 1,394,367 1,122,445 1,380,076 Public debt charges to revenues 0.03 0.02 0.02 0.02 0.02 Town Average 0.07 0.07 0.06 0.06 Comparable Town Average 0.07 0.06 0.06 0.06 Comparable Population Average 0.07 0.06 0.06 0.06

Debt to Revenue Percentage

The total amount of municipal borrowings, 40% including long term capital leases, as a 35% percentage of total municipal revenues. This indicator demonstrates the growth in revenue 30% compared to changes in debt. An increasing 25%

trend would indicate the municipality is 20% increasing its debt load faster than its revenue 15% is growing, which may not be sustainable. 10%

5%

0% NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Total long term debt principal balance 283,516 269,302 254,439 238,897 222,645 Total revenue 1,610,353 1,557,473 2,183,864 2,589,228 1,868,434 Debt to revenue 18% 17% 12% 9% 12% Town Average 34% 35% 35% 37% Comparable Town Average 30% 34% 33% 31% Comparable Population Average 27% 29% 28% 25%

4 TOWN OF NOBLEFORD INDICATORS OF FINANCIAL CONDITION For the year ended December 31, 2019

2015 2016 2017 2018 2019

Net book value to cost of tangible capital assets This indicator is important because it reports 0.70 the extent that the estimated useful lives of tangible capital assets are available to provide 0.60 its services. If a government's scale, scope and 0.50 level of services remain unchanged or grow, its 0.40 asset base could eventually impair flexibility because of the impending future costs of 0.30 capital asset repair or replacement. 0.20

0.10

0.00 NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Net book value 10,192,686 10,162,360 10,373,504 11,466,316 11,703,512 Cost of tangible capital assets 17,432,571 17,824,275 18,455,782 19,984,576 20,690,682 Net book value to cost of tangible capital assets 0.58 0.57 0.56 0.57 0.57 Town Average 0.65 0.65 0.64 0.64 Comparable Town Average 0.54 0.54 0.54 0.54 Comparable Population Average 0.50 0.50 0.49 0.49

Infrastructure Investment The total cost of annual additions (through 3.00 purchases or construction) to tangible capital assets (vehicles, equipment, buildings, roads, 2.50 utility infrastructure, land) relative to the 2.00 annual amortization (depreciation) on all tangible capital assets - measured as a five- 1.50 year average. 1.00

0.50

- NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Tangible capital assets additions 646,467 380,685 631,507 976,357 706,105 Annual amortization expense 388,731 411,011 420,364 455,732 468,910 Additions to amortization expense 1.66 0.93 1.50 2.14 1.51 Town Average 2.39 2.12 2.31 1.98 Comparable Town Average 1.93 1.90 1.81 2.59 Comparable Population Average 1.88 1.47 1.39 2.00

5 TOWN OF NOBLEFORD INDICATORS OF FINANCIAL CONDITION For the year ended December 31, 2019

2015 2016 2017 2018 2019

Own source revenues to taxable assessment

This indicator is important because it shows 3.00% the ratio of a local government's own source revenues to its tax base. A change in the size 2.50% of a local government's taxable assessment or 2.00% a change in the rate of growth in assessment in relation to changes in own source revenues 1.50% could influence flexibility. 1.00%

0.50%

0.00% NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Own source revenues (net of government transfers) 1,154,414 1,164,304 1,351,036 1,576,416 1,323,038 Taxable assessment 115,529,035 123,588,176 120,814,434 134,676,299 138,459,697 Own source revenues to taxable assessment 1.00% 0.94% 1.12% 1.17% 0.96% Town Average 1.70% 1.70% 1.57% 1.74% Comparable Town Average 2.36% 2.44% 2.42% 2.49% Comparable Population Average 1.75% 1.79% 1.79% 1.78%

VULNERABILITY INDICATORS

Government transfers to total revenues

The purpose of this ratio is to show the 45% proportion of revenues that provincial or local 40% governments receive from other governments. 35% This indicator offers a perspective on the degree of vulnerability a government faces as 30% a result of its dependence on another level of 25% government for revenues. 20% 15% 10%

5% 0% NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Government transfers (including capital) 455,939 393,169 832,828 1,012,812 545,396 Total revenues (including capital) 1,610,353 1,557,473 2,183,864 2,589,228 1,868,434 Government transfers to total revenues 28% 25% 38% 39% 29% Town Average 21% 19% 20% 18% Comparable Town Average 22% 19% 21% 28% Comparable Population Average 24% 20% 21% 27%

6 TOWN OF NOBLEFORD INDICATORS OF FINANCIAL CONDITION For the year ended December 31, 2019

2015 2016 2017 2018 2019

OTHER INDICATORS

Reserves to total accumulated surplus 35% The purpose of this ratio is to show the proportion of total accumulated surplus that 30% has been internally restricted. This indicator 25% provides insight on the change in reserves in relation to overall accumulated surplus. A 20% decrease would show that the government has drawn on past reserves to fund current 15%

operations. 10%

5%

0% NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Accumulated surplus - restricted 3,578,818 3,831,619 4,279,037 4,143,705 4,041,932 Overall accumulated surplus 13,587,988 13,824,679 14,498,102 15,471,124 15,622,799 Restricted surplus to accumulated surplus 26% 28% 30% 27% 26% Town Average 10% 10% 10% 11% Comparable Town Average 9% 9% 10% 10% Comparable Population Average 11% 12% 12% 13%

Accumulated surplus available for future use 10,000,000 Accumulated surplus, to the extent it has not 9,000,000 been invested in Tangible Capital Assets, 8,000,000 represents overall surplus that is available for future use. This consists of unrestricted 7,000,000 surplus and reserves and shows trends in 6,000,000 spending vs. saving. This indicator only shows 5,000,000 total surplus; the overall size of the 4,000,000 municipality is not taken into account. 3,000,000 2,000,000 1,000,000 - NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Accumulated surplus - restricted 3,578,818 3,831,619 4,279,037 4,143,705 4,041,932 Accumulated surplus - unrestricted 100,000 100,002 100,000 100,000 100,000 Total accumulated surplus 3,678,818 3,931,621 4,379,037 4,243,705 4,141,932 Town Average 7,583,409 7,974,510 8,185,109 9,063,879 Comparable Town Average 1,945,941 2,090,005 2,060,459 2,115,470 Comparable Population Average 2,741,008 2,956,892 3,034,665 3,283,720

7 TOWN OF NOBLEFORD INDICATORS OF FINANCIAL CONDITION For the year ended December 31, 2019

2015 2016 2017 2018 2019

Tax Base Ratio

This ratio reports the proportion of the total 82% municipal tax revenue generated by residential 80% and farmland tax base, regardless of whether 78% it is municipal property taxes, special taxes, or 76% local improvement taxes. 74% 72% 70% 68% 66% 64% 62% NOBLEFORD Town Average Comparable Town Average Comparable Population Average

Residential & farmland assessed value 87,539,544 95,612,596 91,397,299 101,128,499 104,800,302 Total assessed value 115,529,035 123,588,176 120,814,434 134,676,299 138,459,697 Residential & farmland assessment percentage 76% 77% 76% 75% 76% Town Average 80% 79% 79% 79% Comparable Town Average 81% 81% 80% 80% Comparable Population Average 70% 71% 72% 69%

8 Comparable Listing Comparables were determined on a range of 75% to 125% of your population

Total Town Count: 108

Comparables - Same Type (25) Comparables - Any Type (33) Town list with a comparable population List used for comparable populations

BASSANO ALBERTA BEACH BENTLEY BASSANO BON ACCORD BENTLEY BOWDEN BIGHORN NO. 8, M.D. OF BIRCH HILLS COUNTY BON ACCORD ELK POINT BOWDEN BRUDERHEIM DUCHESS KILLAM ECKVILLE LEGAL ELK POINT MANNING FALHER I.D. NO. 09 (BANFF) NOBLEFORD IRRICANA KILLAM KITSCOTY LEGAL SPIRIT RIVER MANNING MAYERTHORPE THORSBY NOBLEFORD TROCHU ONOWAY TWO HILLS OYEN VAUXHALL SMOKY LAKE VIKING SPIRIT RIVER WEMBLEY STIRLING SWAN HILLS THORSBY TOWNSITE OF REDWOOD MEADOWS ADMIN SOC TROCHU TWO HILLS VAUXHALL VIKING WEMBLEY

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