Northern Rockies Regional Municipality 2016 Annual Report For the year ended December 31, 2016

Transcription

1 Northern Rockies Regional Municipality 2016 Annual Report For the year ended December 31, 2016

2 Northern Rockies Regional Municipality s Vision The Northern Rockies is a region that balances economic development and the integrity of the natural environment. We will be a self-reliant and healthy region. We will proudly embrace life in a unique northern community and create innovative solutions that enhance our quality of place. Our communities will be well-planned, safe and welcoming, providing diverse choices and ample opportunities for employment, education, recreation, housing and health and wellness services. Cover Photo Courtesy of Heather Cobbett Northern Rockies Regional Municipality 2016 Annual Report 2

3 Contents Northern Rockies Regional Council... 4 Message from the Mayor... 5 Introduction... 6 Major Services Highlights Objectives Northern Rockies Regional Municipality Financial Information Northern Rockies Regional Municipality Audited Financial Statements Statement of Permissive Property Tax Exemptions Contacts Northern Rockies Regional Municipality 2016 Annual Report

4 Northern Rockies Regional Council Mayor Bill Streeper Regional Councillor Kyle Andrews Regional Councillor Laurie Dolan Regional Councillor Lorraine Gerwing Regional Councillor Doug McKee Regional Councillor Todd Osbourne Regional Councillor Danny Soles It is the role of Council to act as the governing body of the municipality, and to represent the best interests of the citizens of the municipality as a whole when making decisions necessary for the successful operation of the municipality. Powers are exercised through resolutions or bylaws passed in open meetings. The Council is a continuing body with changes in its membership by election or appointment; as a collective body, members cannot make binding decisions independently, unless express authority has been granted or legislated. Pursuant to section 111 of the Community Charter, there were no Council members disqualified in Northern Rockies Regional Municipality 2016 Annual Report 4

5 Message from the Mayor I am pleased to present the 2016 Annual Report for the Northern Rockies Regional Municipality was the second year of the Infrastructure Development Contribution Agreement (IDCA). The Province of British Columbia issued the $10 million payment that is crucial to the development and maintenance of municipal infrastructure in years to come. Ambitious projects that form the municipality s one, five and twenty-year plans will be undertaken with minimal effect on property taxes due to the IDCA s infrastructure-oriented grant funding. Many growth-related projects have also been deferred by one to five years, reflecting current economic conditions and a pause in the longer-term growth trend in the NRRM. Delaying growth-driven projects enables the NRRM to address some high-priority renewal activities earlier in the planning period. Though the economic situation continues to negatively affect us, Council is investigating all possible avenues of development and looking for operational efficiencies. Your Council and I continue to be committed to providing good governance to deliver quality, affordable services for residents and businesses, in a way that acts on and upholds community values. Bill Streeper Mayor, Northern Rockies Regional Municipality 5 Northern Rockies Regional Municipality 2016 Annual Report

6 The NRRM Our local government model is unique in BC and is almost impossible to compare with others. When looking at our unique characteristics other than our single local government model, the first point is our vast physical size The Northern Rockies Regional Municipality is large 85,148 km2 to be exact which is 10% of the Province of BC or 2.7 times the size of Vancouver Island. Northern Rockies Regional Municipality Most communities within the Province are served by two local governments: the municipal government, and the regional or special purpose district. Municipal local governments may take on locally based services such as fire protection and city streets while regional districts will most often take on regionally based services where cooperation between cities and unincorporated areas is desired, such as solid waste and regional parks & recreation. Instead of two local governments officially providing services to in-town and rural residents, all services, responsibilities, and accountabilities fall to one local government. The first of its kind in BC, the Northern Rockies Regional Municipality was formally incorporated on February 6th, The creation of this unified entity means that taxes from the resource-producing basins such as the Horn River and Liard now flow to the local government rather than the province, enabling local decision-making and input into spending. Years of effort went into the negotiation of a tax-sharing agreement along the lines of the Fair Share Memorandum of Understanding (an annual grant in lieu of access to the industrial tax base) signed in the Peace region in 2005, and renewed in Northern Rockies Regional Municipality 2016 Annual Report 6

7 The NRRM (Continued from page 6) Part of the extensive planning that is prerequisite to the IDCA, is the preparation and implementation of a long term asset management plan based on best available practices of this fledgling field. The Northern Rockies partnered with Kerr Wood Leidal Engineering Consultants to prepare an award-winning Asset Management Strategy, to direct spending on this vital facet of municipal management. April 11,2013 Mayor Streeper and MLA Pimm sign the Infrastructure Development Contribution Agreement (IDCA) In April 2013, the Northern Rockies signed the Infrastructure Development Contribution Agreement (IDCA) with the Province of British Columbia, to serve a mutual interest in seeing the natural gas industry in the NRRM region developed for the benefit of all British Columbians. 1 The terms of this landmark agreement are founded on the implementation of a cornerstone Multi-Year Infrastructure Development (MYID) plan based on the maintenance and development of the NRRM as a industrial service centre over the twenty-year term of the contract. 7 Northern Rockies Regional Municipality 2016 Annual Report

8 Major Services 2016 Regional Council Meeting in Toad River Public Works is responsible for the installation and maintenance of Urban and Rural Roads and Grounds, Drainage Systems, Water Treatment and Distribution, Wastewater Treatment and Collection, Solid Waste Collection and Operations, Cemetery operations, Equipment Maintenance and provision of common community services. Public Works performs many day-to-day services including core activities such as snow clearing and hauling for streets and sidewalks, sanding, street sweeping, boulevard maintenance, provision of drinking water, the collection of wastewater, the provision of solid waste collection to urban residential areas and up and down the highway, as well as trouble shooting water, sewer, drainage and storm issues. Wastewater Treatment Lagoon June 2016 Regional Airport is responsible for the daily operations of the airport and maintains the airfield, buildings, and equipment to provide safe and efficient aviation facilities for the citizens and visitors to the community. All activities are in compliance with the requirements of all Federal and Provincial regulatory authorities to deliver safe, efficient and reliable operational aviation services. Fire Rescue and Bylaw Enforcement provides 24-hour fire and emergency rescue services to varying response areas throughout the Regional Municipality. Additionally, Fire Rescue provides fire prevention, fire inspection, public education, public assistance, and bylaw enforcement services. They respond to structure, vehicular and wildland/urban Visit from the Honourable Steve Thomson, Minister of Forests, Lands and Natural Resource Operations interface fires as well as providing First Responder service and assistance to BC Ambulance Service. Technological Services provides a common point of contact for all technology issues and is tasked with providing support to all areas of the municipality s operations. The department is also responsible for the municipality s Electrical Operating Permits and ensuring compliance with the Electrical Code. This department is also responsible for Mapping & GIS (Geographic Information System), Electrical Automation, Instrumentation, Network/Data Support, Asset Management, Vibration Analysis, Technology Management and Data Collection /Analysis. Northern Rockies Regional Municipality 2016 Annual Report 8

9 Major Services Corporate Services is the information hub of the Municipality that controls, prepares and distributes data. Compliance with regulatory requirements is assured through coordination of records management, agenda preparation, recording of official minutes, preparing and certifying bylaws, and executing all legal documentation on behalf of the Municipality. Corporate Services acts on Council decisions and provides up-to-date procedural, policy and legislative direction to the entire organization This department is also responsible for Bylaw Notice Complaint Screening as well as freedom of information requests. Finance is responsible for accounting, financial planning/statements and the safekeeping of the Municipality s funds and securities. They oversee the investment of funds and ensure that expenditures are made in accordance with Council policy, applicable bylaws, the current municipal budget and relevant legislation. The department s cash management function includes payroll, accounts payable/receivable and ongoing financial reporting. Recreation, Parks and Facilities improves the quality of life of residents in the Northern Rockies Regional Municipality by developing, operating and maintaining high quality facilities, parks, sport fields and regional parks. They also design recreation programming and host special events to foster inclusiveness, accessibility and wellness. The department also preserves the buildings, facilities and parks of the Municipality Playschool and Regional Parks and Campgrounds. Community Planning promotes sound planning and development of our community through the provision of information and service to Regional Council, the development community and the general public. This also includes the preparation and administration of land use regulations and bylaws through building and development permitting. Economic Development and Tourism focuses on strengthening the economy across all sectors of Fort Nelson and the outlying communities of the Northern Rockies Regional Municipality. Engaging in activities to promote economic diversification and attract and retain business, they seek to develop core amenities including medical services and educational opportunities. 9 Northern Rockies Regional Municipality 2016 Annual Report

10 Did you know that the NRRM is involved with the following: Tier 2 regional airport with regularly scheduled flights Full service Fire Rescue department Policing Phoenix Theatre Golf Course Museum Public Library Year round Visitor Information Centre (NRRM/Chamber of Commerce) Municipal Office: Treasury, Administration, Planning, Community Development 11 landfills 60 km of urban roads 150 km of rural roads 22.3 km Sidewalks (varying types and widths) Municipal Streetlights 262 Municipal owned, 325 Hydro Leased 2,000 cubic metres winter sand annual average Water Production annual average 1,000,000 cubic metres (= 2 Billion 500 ml bottles) Treated Wastewater annual average 930,000 m3 65 vehicle Fleet (pick-ups, heavy mobile, specialized) 85 km of Water Transmission and Distribution 8 Water Distribution Pumphouses 4 Water Pressure Reducing Stations 5 Treated Water Reservoirs 349 Hydrants and Valves 500 Mainline Valves 1,457 Industrial-Commercial-Institutional (ICI) Water Service Connections 1,412 Residential Service Connections 45 km of Sewer Collection Mains 1,300 Wastewater Service Connections 493 Man-holes Rural Roads Maintenance Contract Solid Waste Operations and Collections Contracts Residential Curb-side Collection Contract FNFN Water Maintenance Contract Regional Recreation Centre with 2 ice surfaces, indoor skating pond, Curling rink and Aquatic Centre Recreation Programs Municipal and Regional parks and two campgrounds 4.7 km of paved recreation trails Northern Rockies Regional Municipality 2016 Annual Report 10

11 2016 Highlights Transportation Ensuring a reasonable standard for municipal roads is essential for safe and convenient traffic movement for residents as well as industrial users. Urban Roads & Sidewalks Ongoing investments in the NRRM s paved road system within Fort Nelson is necessary to sustain established service levels. In 2009, $4-5 million per year was spent upgrading urban roads. A detailed analysis of the road system was completed in 2013 by Allnorth Consultants Ltd. (Road Asset Management Plan RAMP), and using recommendations that were set out, an annual investment was reestablished at $1.7 million to ensure that roads and sidewalks are maintained to existing standards sustainably developed as future needs arise. Major projects in the 2016 capital program included surface renewal of asphalt roads, street lighting enhancements, and development of the NRRM s Pedestrian Connectivity Network, including the installation of several new pathways in Fort Nelson. Rural Roads In 2014, the NRRM assumed responsibility for the rural roads located in the Regional Municipality as a condition of its incorporation in The 2013 RAMP analysis recommended an annual investment of $500,000 to maintain the desired level of service. Improvements to NRRM s Rural Road Network in 2016 included renewal of gravel roads, and completion of a crib culvert at Parker Creek. 11 Northern Rockies Regional Municipality 2016 Annual Report

12 2016 Highlights Buildings & Facilities A Building and Facilities Asset Management Plan was completed in 2015 identifying the need for replacement or renewal of the functionally deficient administration facilities. NRRM has allocated a portion of capital for renewal of existing municipal-owned buildings to ensure buildings continue to meet established levels of service. Northern Rockies Regional Recreation Centre The reconstruction and expansion of the Northern Rockies Regional Recreation Centre has been ongoing since 2012 after the structural failure of the previous facility. The first two phases have been completed including an arena, second ice surface, meeting rooms and reconstruction of the curling rink. In 2014 the first phase (East lot) of the parking facilities was completed. Construction of the NRRM Recreation Complex was completed in 2016, with the completion of the Recreation Centre West Parking Lot, and installation of accessibility fixtures to centre doors. Municipal Square Renovations The Municipal Square is a large multipurpose facility that includes the Phoenix Theatre, the public library, preschool facilities and seniors housing. Only minor works were undertaken on the facility in Northern Rockies Regional Municipality 2016 Annual Report 12

13 2016 Highlights Buildings & Facilities continued Public Works Yard / Fire Hall An assessment of the existing public works and fire hall facilities (contained in the same structure) indicated the need for upgrading to replace roof structures and other minor improvements consistent with good asset management practices. Building renewal in 2016 included minor renewal of the Public Works Maintenance Shop. Water The water system that serves Fort Nelson was developed in the 1970s with many updates over the years to increase capacity and upgrade the system. There remains deficiencies that will require upgrading to meet existing and future demands relating to supply, treatment and distribution components of the system. Water Treatment Plant Projects in 2016 included renewal of Water Treatment Plant electrical components, replacement of the Upper Reservoir Feeder main, and renewal of the upper pump house mechanical system replacement. The capital program also included designing an expansion of the Rural Water West Reservoir, to enhance ability to meet demand during peak summer conditions. Solid Waste Water Treatment Plant Interior The NRRM operates the only landfill in the region, which serves Fort Nelson and outlying areas, including the Fort Nelson First Nation. The 2016 capital program for NRRM s Solid Waste System included the development of a plan for solid waste diversion and Composting, along with the development of a Solid Waste Management Plan (currently awaiting Provincial approval) and expansion work of the NRRM s landfill. 13 Northern Rockies Regional Municipality 2016 Annual Report

14 2016 Highlights Stormwater Drainage Stormwater drainage, like Water and Sanitary Sewer, is an essential service that protects community safety and health and reduces the risk of damage to both public and private property. Alaska Highway Drainage NRRM initiated a structural rehabilitation program in 2016 for culverts and storm drains using the Water, Sewer and Drainage Asset Management Plan based on its video inspection program, age and material, and based on capacity-related risks identified through the NRRM Drainage Master Plan. The Condition of the NRRM s drainage infrastructure was also reviewed via a fulsome assessment and video inspection of pipe condition. The overall objective of the Master Plan is to assess the drainage system for vulnerability and prioritize renewal and upgrades based on current and future needs. Significant projects in 2016 include the 49th St drainage upgrades and the Liard St underground storm sewer renewal. Sanitary Sewer The sanitary sewer system serving Fort Nelson also dates from the 1970s. Major upgrading is required to address deficiencies and to accommodate future growth. NRRM s 2016 capital program is comprised of two major projects: sewer outfall relocation and construction of the Wastewater Treatment Plant Headworks. The sewer outfall relocation project includes redirecting treated effluent to a new outfall in the Muskwa River. Construction on this project will begin in The headworks broke ground in the summer of 2016, will be complete be commissioned in the summer of In addition, pipe bursting was completed in a right-of-way located between McLeod Rd and Sunset Drive which replaced a sewer main without excavation and minimal impacts to residents and adjacent infrastructure. Wastewater Treatment Plant Lagoons Northern Rockies Regional Municipality 2016 Annual Report 14

15 2016 Highlights Airport The Northern Rockies Regional Airport (NRRA) is a vital facility that supports the air transportation needs of the community. Major improvements are required to address issues such as improving the aprons, providing perimeter fencing and runway lighting, in addition to improving the runway. Proposed improvements are extensive and entail a capital cost of $82.45 million over the next twenty years, a proportion of which may be funded through federal Airport Capital Assistance Program (ACAP) funding intended to offset these large expenses now incurred by municipalities. All estimates are based on the NRRA Master Plan prepared by EBA Consultants Ltd. in 2013 and subsequent assessments by KWL as part of the asset management planning process. Capital projects completed at the regional airport in 2016 include ACAP funded renewals of airfield lighting and Apron 1. Other projects completed included minor mechanical improvements to the Airport Maintenance Building and Terminal. Renewal of Airport water and wastewater assets included the design of upgrades to the Airport Water Treatment Plant, connector main and pumps. Aerial view of Northern Rockies Regional Airport (NRRA) 15 Northern Rockies Regional Municipality 2016 Annual Report

16 2017 Objectives Regional Council s investment priorities for 2017 are focused on the renewal of existing infrastructure to establish strong foundations, while positioning groundwork for growth. In anticipation of a positive LNG outcome, Regional Council prioritizes infrastructure as the underpinning that will accommodate rapid growth in employment, population and housing needs beyond 2017 and serve the needs of the transient workforce and the specific demands of industry. The work that is being undertaken is being guided by an extensive Asset Management System (AMS) using specific criteria to prioritize each project. Roads & Transportation Renewal and upgrading of the NRRM s road system is critical to maintaining an acceptable level of service for existing and future residents. The safety and convenience of NRRM s road system is essential for the functioning and growth of the community as a service centre. Engineering assessments carried out in during the asset management planning process have indicated that an investment of $1.5 M per year is required to ensure that the paved road system continues to provide an acceptable level of service. A further $500,000 will need to be invested annually to ensure that the gravel road system also delivers an acceptable level of service. Pedestrian Connectivity Indoor recreation facilities are vital to enhancing community health and quality of life in communities (particularly those located in the north). Industry has been clear that high quality recreation facilities and programs are very important to attracting and retaining workers and their families in the community. This has been an important factor in recent oil and gas company decisions to locate their workforces in communities providing excellent recreational opportunities and facilities. Continued development of the trail and sidewalk system in Fort Nelson in 2017 will promote active lifestyles, and reduce demands on road and parking infrastructure. Improvements to trail and sidewalk infrastructure will build on the recommendations presented in the NRRM Pedestrian Connectivity Strategy report completed in Buildings & Facilities Assessments of existing municipal buildings completed in the 2015 Buildings and Facilities Asset Management Plan have identified various system renewal needs for 2017, including improvements to the aging public works/fire hall building and an allowance for minor renewal of other facilities. Sustainable renewal budgets and capital project priorities for all municipal facilities for the next twenty years will be included in updates to the five (Capital Expenditure Plan CEP) and twenty-year Multi-Year Infrastructure Development - MYID) capital planning documents based on the asset management plan. NRRM is in the process of developing a Building and Facilities Master Plan to dictate capital program updates in future years. Northern Rockies Regional Municipality 2016 Annual Report 16

17 2017 Objectives Airport Sanitary Sewer Stormwater Drainage Landfill The majority of the workforce required for the development of the natural gas industry will continue to commute by air to NRRM. The NRRA is therefore a vital facility to enable industry to expand its fly in fly out program and secure its labour supply both now and in the future and priority has been given to the renewal and upgrading of the Northern Rockies Regional Airport (NRRA). Industry has been clear that the upgrading and expansion of the NRRA is fundamental to future investments and development of the three major resource basins in the NRRM. The municipal wastewater system is an essential service to Fort Nelson, which serves as the economic hub of the NRRM. The outfall is currently discharging to a river channel with no flow as a result of natural erosion of the Muskwa River, and the NRRM is required (by the Ministry of Environment) to relocate this outfall. In 2016 NRRM began the expansion and relocation of the treated wastewater outfall and prepared to undertake improvements to the wastewater treatment plant, including the construction of headworks and provisions to prevent outfall erosion. Additional wastewater capacity is also necessary to service growth; currently, volumes are constrained by the wastewater outfall, resulting in poor performance after storms and other demands on the system. The wastewater renewal program will continue in 2017 enabling the NRRM to provide an acceptable level of service in the future. The NRRM has completed a Stormwater Drainage Master Plan for the north and south side of the Alaska Highway, resulting in a program designed to identify and prioritize risks to municipal infrastructure and private property. Liard Street Storm Renewal will be completed in 2017, along with asphalt adjacent drainage up-grades and some re-lining to our underground storm lines. Further work will be done with the Drainage Master Plan to assess those areas where stormwater infrastructure was identified as insufficient. In addition to new cell construction, other minor repairs will be made to landfill buildings and fences. In 2016, the NRRM submitted a Solid Waste Management Plan to the Ministry of Environment for approval. This plan will guide future waste diversion and composting initiatives. 17 Northern Rockies Regional Municipality 2016 Annual Report

18 2017 Objectives Funded by: Proposed Budget Carryover Reserve Operations Grants Borrowing Total Funding Public Works Major Maintenance/Project: General project engineering - roads 130,000 55,000 75, ,000 Gravel sourcing/production 500,000 25, , ,000 Asset management 250,000 80, ,000 10, ,000 Alaska Highway Corridor improvements 25,000 25,000 25,000 Drainage master plan 30,000 30,000 30,000 Gravel - RAMP 500, , ,000 42nd Intersection Renewal (MoTI) 500, , , ,000 1,935, ,000-1,460, ,935,000 Capital Asset: Streetlight enhancements 85,000 35,000 50,000 85,000 RAMP Asphalt Roads 1,700,000 1,700,000 1,700,000 Pedestrian connectivity strategy 378, , ,000 Storm & drainage renewal 1,790,000 1,388, ,000 1,790,000 3,953,000 1,801,000-1,460, ,953,000 Mobile Equipment Replacement Capital Asset: PW Lease-Excavator/bucket 5,600 5,600 5,600 5,600-5, ,600 Water Utility Major Maintenance/Project: General Project Engineering - Water 130, , ,000 WTP Efficiency & Capacity Improvements (CWWF) 750, , ,000,750,000 Water/sewer rate/regulation bylaw update 30,000 30,000 30, , , , ,000 Capital Asset: Upper pumphouse mechanical & electrical renewal 537, , ,100 Upper reservoir feeder renewal replacement 202, , ,600 Rural Water West reservoir upgrades 138, , ,000 Filtration system renewal-wtp 483, , ,500 Raw water pumps 189, , ,000 1,550,200 1,550, ,550,200 Northern Rockies Regional Municipality 2016 Annual Report 18

19 2017 Objectives Funded by: Proposed Budget Carryover Reserve Operations Grants Borrowing Total Funding Sewer Utility Major Maintenance/Project: Sewer master plan 200, , , , , ,000 Capital Asset: Sewer outfall relocation construction 10,880,000 2,000,000 8,880,000 10,880,000 WWTP Headworks 3,129,000 1,429,000 1,700,000 3,129,000 Sanitary Sewer renewal 1,320, ,000 1,105,000 1,320,000 WWTP aeration system upgrade design 100, , ,000 15,429,000 3,744,000-11,685, ,429,000 Solid Waste Major Maintenance/Project: Solid Waste Management Plan 50,000 6,000 44,000 50,000 Design & operations manual 50,000 50,000-50, ,000 56,000-44, ,000 Capital Asset: Landfill renewal 235, , ,000 Composting/Waste diversion (SWMP) 1,100, , ,000 1,100,000 1,335, , ,000-1,335,000 Airport Major Maintenance/Project: Runway re-designation 35,000 35,000 35,000 Water plant process controls 5,450 5,450 5,450 Airport WW servicing - field investigation 73,600 73,600 73,600 Airfield Lighting 5,000 5,000 5, ,050 79,050-40, ,050 Capital Asset: Grader (ACAP) 275, , ,000 Perimeter Fence (ACAP) 1,400,000 1,400,000 1,400,000 Apron 1 Expansion repairs (ACAP) 38,500 38,500 38,500 Airport water plant upgrades - design/construction 59,000 59,000 59,000 Airport connector main (CWWF) 6,071, ,000 1,239,700 4,631,000 6,071,700 Pressure Washer 12,000 12, ,000 Runway (ACAP) 7,150,000 7,150,000 7,150,000 15,006, ,000-1,251,700 13,494,500-15,006, Northern Rockies Regional Municipality 2016 Annual Report

20 2017 Objectives Funded by: Proposed Budget Carryover Reserve Operations Grants Borrowing Total Funding Recreation Major Maintenance/Project: NRRRC security gates 10,000 10,000 10,000 NRRRC hall sound system upgrades 5,500 5,500 5,500 15, , ,500 General Government Capital Asset: Building renewal 500, , ,000 Rec Centre paydown 2,575,800 2,575,800 2,575,800 3,075, ,075, ,075,800 Protective Services Fire Department Major Maintenance/Project: PPE SCBA (Self-Contained Breathing Apparatus) 20,000 20,000 20,000 FireSmart Grant 10,000 10,000 10,000 FS Wildfire mitigation UAV Pilot 137,450 20, , , , , , ,450 Animal Control Major Maintenance/Project: Bear Response Program 3,000 3,000 3,000 3, , ,000 Community Development & Planning Planning & Development Major Maintenance/Project: OCP/Zoning Bylaw Expansion 75,000 20,000 55,000 75,000 IDCA Implementation 200, ,000 95, ,000 Community Wildfire Protection Plan-Fort Nelson 30,000 7,500 22,500 30, , , ,500 22, ,000 Capital Asset: Toad River Subdivision Development costs 90,000 15,000 75,000 90,000 90,000 15,000-75, ,000 Northern Rockies Regional Municipality 2016 Annual Report 20

21 2017 Objectives Funded by: Proposed Budget Carryover Reserve Operations Grants Borrowing Total Funding Economic Development: Major Maintenance/Project: Economic strategy 105,010 19,290 85, ,010 Foreign Direct Investment Strategy 16,480 8,240 8,240 16,480 Economic forecasting: EDISON 40, ,920 15,730 40,500 Forest Industry Rejuvenation Initiative 66,280 46, ,670 66,280 Northern Rockies Community Forest 45,000 24,900 20,100 45,000 Phase 2 - Aspen Market Analysis 250,000 75, , ,000 Arbor Day 5, ,000 5,000 Agricultural Advisory Committee 3,000 3, ,000 NR Business Façade Improvement Program 14, ,550 14, and mobile services 6,500 6, ,500 Disc Golf 33,350 3,350 30,000 33,350 Love Fort Nelson 1, ,200 1, ,870 81, , , ,870 Tourism Major Maintenance/Project: Tourism Strategic Plan Implementation 25,000 15,500 3,790 5,710 25,000 Annual Tradeshow Attendance 12,700 5,700 7,000 12,700 Visitor Centre Operations 73,700 73,700 73,700 75th Anniversary Grant program 75,000 75,000 75,000 Public Washroom Partnership Program 50,000 50,000 50, ,400 15, ,190 12, ,400 Total Major Maintenance/Projects 4,578, ,410-2,554,800 1,402,060-4,578,270 Total Capital Assets 40,444,800 7,975,200 5,600 18,239,500 14,224,500 6,480,000 40,444,800 45,023,070 8,596,610 5,600 20,794,300 15,626,560 6,480,000 45,023, Northern Rockies Regional Municipality 2016 Annual Report

22 Northern Rockies Regional Municipality Financial Information 2016 Actual Breakdown of $1 Municipal Taxes Wastewater Treatment Lagoon Northern Rockies Regional Municipality 2016 Annual Report 22

23 Northern Rockies Regional Municipality Financial Information 2016 Actual Revenue 2016 Actual Expense Source: Notes to Financial Statements for the Year ended December 31, 2016 (Note 13. Segmented disclosure) 5 Year Historical Data: Consolidated Revenue: 33,867,473 33,456,595 35,892,514 49,116,578 46,012,488 Consolidated Expenses: 24,679,156 25,178,477 27,859,506 32,359,280 31,468,271 Annual Surplus 1 : 9,188,317 8,278,118 8,033,008 16,757,298 14,544,217 1 Annual Surplus is used to fund debt repayment and capital investment. 23 Northern Rockies Regional Municipality 2016 Annual Report

24 Northern Rockies Regional Municipality Financial Information Monthly average household costs in British Columbia Comparison of Municipal Taxes in Other Communities* * On a house assessed at $300,000; municipal taxes only school tax and BC Assessment Authority levies are not included. $1,600 $1,541 $1,400 $1,200 $1,084 $1,000 $959 $800 $685 $600 $400 $200 $0 $14 $14 $92 $99 $140 $147 $166 $168 $210 $215 $258 $348 $355 $377 Source: Statistics Canada Survey of Household Spending 2014 Source: BC Ministry of Community, Sport and Cultural Development Local Government Statistics; Alberta Municipal Affairs Maps and Statistics Northern Rockies Regional Municipality 2016 Annual Report 24

25 Consolidated Financial Statements For the Year Ended December 31, 2016 Table of Contents Management Responsibility 26 Independent Audit Report 27 Consolidated Statement of Financial Position 28 Consolidated Statement of Operations 29 Consolidated Statement of Changes in Net Financial Liabilities 30 Consolidated Statement of Cash Flows 31 Significant Accounting Policies 32 Notes to Consolidated Financial Statements Northern Rockies Regional Municipality 2016 Annual Report

26 Responsibility for Financial Reporting MANAGEMENT RESPONSIBILITY The accompanying financial statements of the Northern Rockies Regional Municipality (the "Regional Municipality) are the responsibility of management and have been prepared in compliance with legislation, and in accordance with Canadian public sector accounting standards for local governments as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants Canada. A summary of the significant accounting policies are described within the financial statements. The preparation of financial statements necessarily involves the use of estimates based on management's judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. Mayor and Council meet with management and the external auditor to review the financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the financial statements. The financial statements have been audited by Sander Rose Bone Grindle LLP, independent auditors of the Regional Municipality. The accompanying Independent Auditors Report outlines their responsibilities, the scope of their examination and their opinion on the Regional Municipality s financial statements. The Regional Municipality's management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the financial statements. These systems are monitored and evaluated by management. Scott Barry Chief Administrative Officer Kelly Sheppard Director of Finance Fort Nelson, BC April 24, 2017 Northern Rockies Regional Municipality 2016 Annual Report 26

27 Responsibility for Financial Reporting INDEPENDENT AUDITOR S REPORT To the Mayor and Council of the Northern Rockies Regional Municipality Report on the Financial Statements We have audited the accompanying consolidated financial statements of the Northern Rockies Regional Municipality, which comprise the consolidated statement or financial position as at December 31, 2016 and the consolidated statements of operations and cash flows and changes in net financial liabilities for the year then ended, and a summary or 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 consolidated financial statements in accordance with Canadian public sector accounting standards, and or such Internal control as management determines is necessary to enable the preparation of consolidated 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 consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose or 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 consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Northern Rockies Regional Municipality as at December 31, 2016 and the results of its operations, its cash flows and changes in net financial liabilities for the year then ended in accordance with Canadian public sector accounting standards. Fort St. John, BC April 24, Northern Rockies Regional Municipality 2016 Annual Report

28 Consolidated Statement of Financial Position December 31, 2016 with comparative figures for 2015 See accompanying notes to consolidated financial statements Financial Assets Cash and cash equivalents $ 23,877,166 $ 1,353,267 Short Term Investments 189,812 15,269,059 Accounts receivable (Note 1) 3,463,903 6,794,351, Land for sale 4,467,336 4,467,336 MFA Deposits - - Tax sale properties (Note 2) 13,930 - Mortgage receivable (Note 3) - 261,906 Financial Liabilities 32,012,147 28,145,919 Short term borrowing (Note 5) 22,000,000 27,000,000 Accounts Payable and accrued liabilities (Note 6) 6,292,028 4,915,009 Due to Northern Rockies Regional Hospital District 1,573,043 1,634,019 Deferred Revenue 21,110 19,493 Debenture debt (Note 7) 15,157,984 16,670,492 Capital lease obligations (Note 8) - 401,037 (45,044,165) (50,640,050) Net Debt 2 (13,032,018) (22,494,131) Non-Financial Assets 3 Tangible capital assets (Note 10) 194,529, ,731,089 Prepaid expenses 347,798 64,146 Inventory 128, , ,006, ,924,013 Accumulated Surplus 4 (Note 9) $ 181,974,099 $ 167,429,882 1 Financial assets: cash resources. 2 Net debt: the net financial position, calculated as the difference between financial assets and liabilities. 3 Non-financial assets: assets that are owned and will be utilized for future services, including tangible capital assets, inventories and prepaid expenses. 4 Accumulated surplus: this is an indicator of the Municipality s overall financial health. It is the difference between the combined financial assets and non-financial assets as compared to its liabilities and includes the investments in tangible capital assets (capital equity), total reserves (restricted funds), appropriated surplus (internally appropriated funds/provisions) and general or unrestricted surplus. Northern Rockies Regional Municipality 2016 Annual Report 28

29 Consolidated Statement of Operations 1 For the Year ended December 31, 2016 with comparative figures for 2015 See accompanying notes to consolidated financial statements Revenues Budget 2016 (unaudited) Actual 2016 Actual 2015 Taxation $ 27,732,060 $ 40,609,840 $ 42,456,735 Collected for other governments - (12,917,649) (13,861,543) Net Taxation 27,732,060 27,692,191 28,595,192 Government transfers 15,514,940 12,896,480 15,253,991 Fees and charges 4,420,150 4,385,401 4,789,135 Land Sales 50,000-75,265 Actuarial Adjustments - 1,044, ,075 Gain/loss on disposal of TCA - (6,560) 127,920 Expenses 47,717,150 46,012,488 49,116,578 General government 3,244,640 2,996,452 3,244,772 Protective Services 4,425,360 4,456,779 3,843,620 Utilities 2,828,750 3,844,563 4,344,121 Community development 1,181,020 1,444,917 1,478,415 Recreation and Culture 6,570,800 8,666,767 8,108,416 Transportation Services 5,775,820 6,590,075 7,872,564 Solid waste management 1,315,340 1,118,491 1,125,436 Cemetery 47,590 40,442 33,313 Airport 1,507,600 2,307,772 2,281,640 Land development - 2,013 26,983 27,533,920 31,468,271 32,359,280 Annual surplus 2 20,183,230 14,544,217 16,757,298 Accumulated surplus - 167,429, ,672,584 Prior period adjustment (Note 11) Accumulated surplus, beginning of year, restated - 167,429, ,672,584 Accumulated surplus, end of year $ 20,183,230 $ 181,974,099 $ 167,429,882 1 The statement of operations shows the sources of revenues and expenses, the annual surplus or deficit and the change in the accumulated surplus 2 Annual surplus is shown on this statement as the difference between revenues recognized and the cost of government services provided in the fiscal year. 29 Northern Rockies Regional Municipality 2016 Annual Report

30 Consolidated Statement of Changes in Net Financial Liabilities For the Year ended December 31, 2016 with comparative figures for 2015 See accompanying notes to consolidated financial statements Budget Excess Revenue Over Expense $ 20,183,230 $ 14,544,217 $ 16,757,298 TCA (tangible capital assets) capitalized in year (29,810,400) (10,973,932) (15,774,651) Amortization of tangible capital assets - 6,151,434 5,962,682 Proceeds from disposal of tangible capital assets - 17, ,618 Gain/loss on disposal of TCA - 6,560 (127,920) Change in inventory Change in prepaid expenses - (283,652) (64,146) Decrease (increase) in Net Financial Liabilities (9,627,170) 9,462,113 6,910,881 Net Financial Liabilities, beginning of year - (22,494,131) (29,405,012) Net Financial Liabilities, end of year $ (9,627,170) $ (13,032,018) $ (22,494,131) Northern Rockies Regional Municipality 2016 Annual Report 30

31 Consolidated Statement of Cash Flows December 31, 2016 with comparative figures for 2015 See accompanying notes to consolidated financial statements Operating Activities Excess revenue over expenses $ 14,544,217 $ 16,757,298 Amortization of tangible capital assets 6,151,434 5,962,682 (Gain)/loss on disposal of capital assets 6,560 (127,920) Decrease/(increase) in receivables 3,330,448 (4,295,664) Decrease/(increase) in property held for resale - (20,601) Decrease/(increase) in prepaid expenses (283,652) (64,146) Decrease/(increase) in tax sale properties (13,930) 13,006 Decrease/(increase) in inventory - - Decrease/(increase) in Municipal Finance Authority (MFA) deposits - 22,467 Increase/(decrease) in short term borrowing (5,000,000) (5,000,000) Increase/(decrease) in accounts payable and accrued liabilities 1,377,019 (2,091,059) Increase/(decrease) in deferred revenue 1,617 (15,011) 20,113,713 11,141,052 Investing Activities Acquisition of tangible capital assets (10,973,932) (15,774,651) Proceeds from disposal of tangible capital assets 17, ,618 Mortgage receivable 261,906 13,489 (10,694,540) (15,603,544) Financing Activities Repayment of long term debt (1,512,508) (839,154) Repayment of capital leases (401,037) (180,334) Due to Northern Rockies Regional Hospital District (60,976) 40,229 (1,974,521) (979,259) Net cash increase (decreases) in cash and cash equivalents 7,444,652 (5,441,751) Cash and cash equivalents at beginning of period 16,622,326 22,064,077 Cash and cash equivalents at end of period 24,066,978 16,622,326 Cash and cash equivalents consist of the following: Cash and cash equivalents 23,877,166 1,353,267 Short term investments 189,812 15,269,059 $ 24,066,978 $ 16,622, Northern Rockies Regional Municipality 2016 Annual Report

32 Significant Accounting Policies For the Year ended December 31, 2016 The Northern Rockies Regional Municipality was incorporated in the Province of British Columbia on February 6, 2009 and its principal activities include the provision of legislative; administrative; protective; utility; planning and development; recreation and culture; and transportation services to its residents. The Northern Rockies Regional Municipality is a continuation of the Town of Fort Nelson and Northern Rockies Regional District, which were amalgamated on February 6, The consolidated financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles for governments as recommended by the Public Sector Accounting Board ("PSAB") of the Canadian Institute of Chartered Accountants. Significant accounting policies adopted by the regional municipality are as follows: Basis of consolidation The financial statements include a combination of all the assets, liabilities, accumulated surplus, revenues and expenses of all of the regional municipality's activities and funds. All material interdepartmental balances and organizational transactions have been eliminated. The regional municipality entered into a joint venture called NRM Industrial Subdivision Joint Venture in the development of light industrial lands. In accordance with PS 3060, Government Partnership, of the Public Sector Accounting Board handbook, the regional municipality is required to account for the Joint Venture using proportionate consolidation. Accordingly, the consolidated financial statements include 50% of the accounts of the joint venture. The Cemetery Trust, Employee Trust and Invasive Plant Trust Funds See accompanying notes to consolidated financial statements are administered by the regional municipality and are specifically excluded from the consolidated financial statements and are reported separately (Note 12). Basis of accounting The regional municipality follows the accrual method of accounting for revenues and expenses. Prior year's amounts have been restated to conform with the current year's presentation. Land Held for Resale Land held for resale is measured at the lower of cost and net realizable value. Cost consists of material costs, subcontractor costs, and other costs incurred in bringing the land to their present location and condition. Costs of land for sale are segregated for specific projects and are assigned by using specific identification of their individual costs. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated selling costs. Mortgage receivable Mortgage receivable is recorded at principal amount, less any allowance for anticipated losses, plus accrued interest. Interest revenue is recorded on the accrual basis. Inventory Inventory consists of residential curbside collection carts distributed to residences. Inventory is recorded at cost. Expenses Expenses are recorded in the period in which the goods or services are acquired and a liability is incurred. Northern Rockies Regional Municipality 2016 Annual Report 32

33 Significant Accounting Policies For the Year ended December 31, 2016 Revenue Recognition Fees and charges revenue Charges for permits, licences, leases, user fees (recreation, solid waste, water, waste water and airport) are included in this category. These revenues are recorded on the accrual basis and recognized when earned. Government transfers Government transfers are recognized as revenue in the period that the transfer is authorized, eligibility criteria, if any, have been met by the regional municipality, and a reasonable estimate of the amount to be received can be made. Taxation revenue Annual levies for non optional municipal services and general administration services are recorded as taxes for municipal purposes. Levies imposed by other taxing authorities are not included as taxes for municipal purposes. Taxes are recognized as revenue in the year they are levied. Through the British Columbia Assessments appeal process taxes may be adjusted by way of supplementary roll adjustments. The effects of these adjustments on taxes are recognized at the time they are awarded. Use of Estimates Management has made estimates and assumptions that affect the amount reported in preparing these financial statements. Significant areas requiring the use of management estimates relate to the determination of tangible capital assets historical cost, estimated useful life and related amortization, and landfill post closure costs. Actual results could differ from the estimates. Budget Information Unaudited budget information, presented on a basis consistent with that used for actual results and excluding amortization, was included in the Northern Rockies Regional Municipality Consolidated Five Year Plan and was adopted through Bylaw No. 120,2016 on May 9, Financial Instruments See accompanying notes to consolidated financial statements The regional municipality's financial instruments consist of short term investments, accounts receivable, short term borrowing, accounts payable and accrued liabilities, amounts due to Northern Rockies Regional Hospital District, debenture debt and capital lease obligations. Unless otherwise noted, it is management's opinion that the regional municipality is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximate their carrying value, unless otherwise noted. Reserve for Future Expenses Reserves for future expenses are non statutory reserves which represent an appropriation of surplus for specific purposes. Transfers to reserves for future expenses include funds to finance incomplete projects and accumulations for specific purposes. Statutory Reserve Funds The use of these funds is restricted by the Community Charter and associated Municipal Bylaws. Statutory reserve funds are funded 100% by cash. Work in Progress Work in progress represents capital projects under construction but not yet completed and are valued at cost. The purchase and development of land for residential subdivisions is held in work in progress while road and utility services are being constructed. Tangible Capital Assets The regional municipality records physical assets including assets held under capital lease, at cost in the period they were acquired or when the asset is put into use. 33 Northern Rockies Regional Municipality 2016 Annual Report