2021/2022 Budget, Business Plan & Annual Report

2022 staying the course md.bonnyville.ab.ca BUSINESSBUDGET, PLAN & ANNUAL REPORT

FINANCIAL PLAN

The budget document establishes a guideline which the M.D. uses to track its sources of revenue and to measure and control department expenditures. The budget serves as the operating and capital plans for the municipality.

The budget is Council’s most important annual policy decision. It acts as an annual review of the services to be delivered, priorities, and needs and goals while determining the appropriate funding. The main sources of funding are taxation revenue, grants, and user fees. Council is ensuring that all essential services will be delivered while continuing with capital projects to make the M.D. a desirable place to live, work, and visit.

WELCOME

The 2022 budget was developed to provide residents with information regarding the operations and capital priorities of the Municipal District of Bonnyville. This guide outlines the services the M.D. will provide in 2022, the cost to deliver these services, and the infrastructure needs of the municipality.

The M.D. of Bonnyville’s budget document identifies the operations plan for the year, and forecasts specific services to be delivered. Each department’s budget is presented to Council with details of the services being delivered and the costs of delivering such services. Once the budget is passed, the departments are then responsible for the service delivery to residents.

The budget document is used as the primary means of communicating the financial decisions of Council to the residents of the M.D. It provides a summary of each department and the services being delivered. The community is also engaged during the budget process through budget open houses. The open houses provide a means to communicate the budget to residents prior to Council approval of the budget.

COMMUNICATION

Each section of this budget document provides an overview of the department, budget, and projects to be delivered in the upcoming year. This budget document is intended to convey the following information to M.D. residents, ratepayers, and businesses:

OPERATING GUIDE

POLICY DOCUMENT

10090706MUNICIPALOVERVIEWCORPORATEIDENTITYCOUNCILPROFILECOMMUNITYPROFILETableofContents11LIVINGINTHEM.D.12MESSAGE FROM THE 1413REEVEMESSAGEFROMTHECAOKEYFINANCIALPRINCIPLES 181716CITIZENENGAGEMENTSTAFFINGORGANIZATIONALCHART 20FINANCIALS 20. Consolidated Budget 21. Operating Budget Summary 22. Capital Budget Summary 23. Financial Reserves 25. Contributions to Other Agencies 26. Funding Sources BUDGET DEPARTMENTBY 27. Taxation 28. General Governance 29. Council 30. Corporate Services 32. Infrastructure Services 39. Environmental & Protective Services 44. Planning & Community Services 49 APPENDIX • Mill Rate Bylaw • Audited Financial Report 55Business Proposal | info.business@email.com | www. business .com Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-265 | Annual Report 55md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

There are seven hamlets within the M.D. – Ardmore, Cherry Grove, Fort Kent, Franchere, Iron River, La Corey, and Therien. Water and sewer services are provided in the hamlets of Fort Kent and Ardmore, as well as bulk water services. These two hamlets, as well a select subdivisions throughout the M.D., are a part of the door-to-door waste collection program, which uses M.D.supplied black carts. Major subdivisions, with country-residentiallargelots,aresituatedthroughoutthemunicipality.

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OVERVIEWMUNICIPAL

The Municipal District of Bonnyville is located in the heart of Northeastern Alberta’s lake country. With over 80 named lakes, you are never far from the water. Add in huge tracts of boreal forest, outdoor adventures are always close at hand.

Council strives to be as open and transparent as possible, fulfilling the needs of the M.D.’s residents, ratepayers, and businesses. Council sets policy for the operations and corporate culture of the M.D. and passes bylaws to make sure the M.D. conducts business in an open and transparent manner.

OUR VISION

Council was named as the Development and Subdivision authorities, which allows for the Municipal Planning Commission meetings to be added to the Regular Meetings of Council. During this portion of the meeting, members hear about developments requiring variances from the standards set out in the Land Use Bylaw, appeals to developments, and more.

identityCORPORATE

Regular Meetings of Council are typically held the second and fourth Wednesday of each month, while Committee of the Whole meetings are held on the third Wednesday. Meetings begin at 9 a.m. in Council Chambers, located in the Main Administration Building, located at 4905 – 50 Ave. in Bonnyville. Full agenda packages can be found on the municipality’s website on the Monday before each meeting. Recordings of each meeting can be found on the M.D.’s YouTube Inchannel.early2022,

To develop, maintain, and enhance a safe and prosperous municipality through the effective provision of services for its public.

The Municipal District of Bonnyville Council is comprised of seven Council members – one Reeve and six Councillors. The office of Deputy Reeve rotates between the Councillors on a biannual basis. Each Council member sits for a four-year term, as per the Alberta Municipal Government Act.

PRINCIPLESGUIDING

We believe everyone has the right to be heard. We believe in the good stewardship of public Wefunds.believe in the enhancement of quality of Welife.believe there should be openness in decision Wemaking.believe in the equality of Weservice.valuethe safety of the public and our staff. We value contributions,the skills, and abilities of all members of the organization. We value and respect people and property.

Back row (L-R): Ben Fadeyiw (Ward 6), Mike Krywiak (Ward 3), Dana Swigart (Ward 5), Darcy Skarsen (Ward 2). Front row (L-R): Don Slipchuk (Ward 4), Barry Kalinski (Reeve), Josh Crick (Ward 1).

OUR MISSION

The Municipal District of Bonnyville will be a leader and innovator in local municipalservices,governance,andeconomicprosperity.

The Council of the Municipal District of Bonnyville No. 87 is comprised of a Reeve and six Councillors. Each Councillor represents one of the six (6) Wards with the M.D., as indicated on the map. Council members are elected within the ward where they live to act as representative of that specific area at Council.

01WARD 02WARD 03WARD 04WARD 05WARD 06WARD REEVE

profileCOUNCIL

BEN bfadeyiw@md.bonnyville.ab.ca780.826.1462

bkalinski@md.bonnyville.ab.ca780.573.6082

DON SLIPCHUK dslipchuk@md.bonnyville.ab.ca780.545.8443

FADEYIW

DUTIES & FUNCTIONS

DARCY SKARSEN dskarsen@md.bonnyville.ab.ca780.201.3478

The Council conducts biweekly Coun cil meetings and a monthly Com mittee of the Whole meeting. These meetings are open to the public and allow for public input. The Reeve is the default Chair of all Council meet ings.

DANA SWIGART dswigart@md.bonnyville.ab.ca780.573.9095

JOSH CRICK

MIKE mkrywiak@md.bonnyville.ab.ca780.573.6093

The Reeve and Council are governed by the Municipal Government Act. The Council passes bylaws and create pol icies to ensure the safety and viability of the M.D. They provide leadership as the legislative and policy-making body for the organization.

jcrick@md.bonnyville.ab.ca780.545.5961

KRYWIAK

BARRY

KALINSKI

profileCOMMUNITY//

A substantial portion of the land within the M.D. is zoned agricul ture, creating the basis for an attractive rural lifestyle. The region has a strong, diversi fied agricultural sector producing a variety of oilseed, cereal, and pulse crops. Beef cattle and grain crops are now supplemented by forestry, wild game farming, and specialty crops.

The M.D. continues to invest in tourism and recreation. In 2022, the expanded campground sites in the Cold Lake M.D. Park will open, while the Aerial Adven ture Park at Kinosoo Ridge has opened, turning the facility into a year-round destination. The best readily accessible recreation lakes in Alberta are nestled in the boreal forests that encompass the M.D. With over 20 resorts and campgrounds attracting thousands of visitors year-round, there are many opportunities for tourism investment.

TOURISM & RECREATION

Covering a sizable portion of Northeastern Alberta, the M.D. consists of over one million acres of farmland and large expanses of natural parkland, boreal forests, and lakes. Its economic strength is due to the resource in dustries of oil and gas, forestry, agriculture, and blossoming tourism opportunities. The numerous lakes within the M.D.’s borders offer plenty of summer and winter recreation and tourism opportunities, resulting in an enviable outdoor lifestyle. The M.D. neighbours the City of Cold Lake, Town of Bonnyville, Summer Villages of Bonnyville Beach and Pelican Narrows, Village of Glendon, County of St. Paul, Lac La Biche County, Kehewin Cree Nation, Cold Lake First Nation, and the Fishing Lake and Elizabeth Métis settlements.

The Municipal District of Bonnyville is one of the largest and most diversely developed rural districts in Alberta.

AGRICULTURE

OIL & GAS

The M.D. of Bonnyville has a well-established network of local roads (2,757 km), secondary (493 km) and primary highways (372 km), with freight companies servicing the region. The municipality is located on the High Load Corridor and is part of the Eastern Alberta Trade Corridor, which is linked to the Edmon ton-Calgary corridor to the west, abundant oil and gas resources in the northeast, and the U.S. and Mexi co to the south. The M.D. is approximately two hours northeast of Edmonton on Highway 28. Air service is available at the M.D.-owned Bonnyville Regional Airport, as well as the Cold Lake Regional Airport.

The M.D. sits in the heart of the Cold Lake Oil Sands area, the sec ond largest oil reserve in Alberta. Companies operating within our borders can produce up to 500,000 barrels of oil equivalent/day and that number could rise as additional projects come on stream. Imperi al Oil’s project is Canada’s largest in-situ oil sands operation, produc ing approximately five percent of all crude oil in Canada. The company operates five processing plants in the area. The M.D. has over 17,000 oil/gas wells, which adds to the overall production.

Housing options are plentiful in the M.D. There are op portunities to live on farms, hobby farms, acreages of five to 10 acres, rural subdivisions with lots ranging from half an acre to five acres, or in our hamlets offering sin gle or multifamily lots. The M.D. also has zoning for rural commercial or rural industrial where the family home and business can be located.

HEALTHCARE

education options are found in the neighbour ing urban municipalities and in two rural schools. The Northern Lights School Division No. 69 operates K to 12 schools in Bonnyville, Cold Lake, and Glendon, with K to 9 schools in Iron River and Ardmore to serve rural resi dents. Lakeland Catholic School District No. 150 operates K to 12 schools in Bonnyville and Cold Lake. East Central Francophone Education Region No. 3 op erates Ecole des Beaux Lacs in Bonnyville and Ecole Voyager in Cold Lake. Portage College offers a variety of programs in Cold Lake.

inLIVINGtheM.D.

EDUCATION

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Diverse—

COMMUNITY SERVICES

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The— neighbouring urban centres provide services to residents in the M.D., offering big box stores, specialty shops, restaurants, and accommodations. The Bonnyville Regional Fire Authority oversees fire departments in the M.D.’s hamlets as well as in Bonnyville. There are RCMP detachments in Bonnyville and Cold Lake. Cold Lake RCMP cover the east side of the M.D. and the Bonnyville RCMP cover the west side. Both Cold Lake and Bon nyville have their own Family and Community Support Services facilities, which offer a variety of programs to M.D. residents.

of the M.D. have access to two healthcare centres — one in Bonnyville and one in Cold Lake. Other facilities include medical and dental clinics, optometrists, chiropractors, and orthodontic ser vices. Senior care is provided by the Bonnylodge, Extendicare, and the Health Centre in Bonnyville and in Cold Lake at the Lodge, Health Centre, and Points West Living.

HOUSING

Residents—

The quality of life is unsurpassed in the M.D. of Bonnyville.

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The municipality is well-known for its mul titude of lakes, campgrounds, and beach es. The M.D. operates 12 campgrounds on nine lakes and an Aerial Adventure Park at Kinosoo Ridge Resort. In winter, residents can enjoy the Tube Park and 42 acres of skiable terrain at Kinosoo Ridge or 13 km of cross-country ski trails at Muriel Lake M.D. Park. Indoor programming is provided at the jointly owned Bonnyville and District Centennial Centre, which has two full-size NHL arenas, wellness centre, athletic field house, indoor running track, climbing wall, and indoor play area. The Cold Lake Energy Centre provides the same opportunities on the east side of the municipality.

Tele +(789)-7365-265-253

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I’d like to take a minute to thank the staff at the Municipal District of Bonnyville. They have persevered during the difficult years brought on by the pandemic, con tinuing to provide quality services and information, and being innovative in finding new ways to do business in the M.D.

So far this year, we have seen the completion of the Thin Lake River Bridge replacement, the opening of the Kinosoo Ridge Aerial Adventure Park, and the replacement of the Green Chair at the ski hill. Work on a new portion of the Moose Lake Trail has begun, while boat launch maintenance is just wrapping up. This is just the start of a very busy year.

Council is committed to continuing to provide excellent service for our residents, while being fiscally responsible with taxpayers’ money. We, along with M.D. staff, are dedicated to making the M.D. the best place to live, visit, and do business.

As the 2021-2025 Council settles in, our focus for the 2022 budget is Staying the Course. We chose to focus on projects that have been waiting in the wings, main taining service levels, and staying within our planned budget. This is particularly important to note, as when you, the residents and ratepayers of the M.D. elected this Council, you did so based on our campaign platforms of fiscal responsibility.

MESSAGE FROM THE

DEAR RATEPAYERS,

We continue to look toward the future of the M.D. with the continued progress in Economic Development, intermunicipal collaboration framework agreements with our neighbours, Area Structure Plan reviews and updates, and forward-looking documents including the Recreation Master Plan, Kinosoo Ridge Business Devel opment and Destination Management Plan, and of course our four-year proposed road project list.

The past few years have seen great pressure applied to supply chains, which have in turn increased prices and delivery times on products we use every day, including the oil we use to mix for material to build and maintain roads. This has led to less new projects being approved in the 2022 budget, allowing for carryover projects to be completed.

REEVE —

MESSAGE FROM THE CHIEF OFFICERADMINISTRATIVE

The future is bright, however. There has been a significant uptick in our primary business — the oilpatch. New well activity is increasing daily, the price of crude has rebounded to high levels, and with that we will see increased municipal revenues over the next several years. Due to some legislative sleight of hand though, we will not see any increased revenues from new well drilling until after 2025. The provincial govern ment, in an effort to support industry, placed a moratorium on munic ipal property taxes being levied on new wells until 2025. This has had a major impact on our M.D. transportation network, as the roads are being well used without the benefit of seeing increased revenues to compensate. To offset this, we have embarked on a strategy of hav ing our commercial road users enter into Road Use Agreements with the goal to have the main users cover the costs of any damages they cause on our roads network. So far, we are pleased with the results. The staff at the M.D. have done an amazing job in shaving expenses where possible. We have re-evaluated our roads program to see what work is possible to complete in-house and what work is possible to design in-house. As an example, this tactic has, in two separate pro jects, led to over $2 million in savings.

Continuing into 2022, we saw the opening of the Aerial Adventure Park at Kinosoo Ridge in May and work continues on the new Green Chair lift with its completion in time for the 2022/23 ski season. New trails are being completed in the Moose Lake area solidifying Council’s commitment to recreation and the health and wellness of our Theresidents.nextyear or two will be challeng ing, but our optimism remains high. The M.D. has stable revenues which makes it somewhat easier to stave off the pressures of increased expenses. We should see an increase of property assessments over the next three years which will help offset the growing costs of the commodities we require to maintain a municipality. Adminis tration is committed to being cost effective and looking for savings opportunities wher ever we may find them. We remain dedicat ed to providing the highest level of service possible while always remaining cognizant that we operate on taxpayer dollars.

With the ongoing COVID-19 dilemma, 2021 was a difficult year for most municipalities. We saw the rise of the supply chain issues, and the slow but steady increase of costs due to a variety of provincial, national, and international pressures. The result of those pressures, including increased costs, are reflected in our 2022 Budget. Increased costs to the M.D., become increased costs to our end users — the residents and businesses of the Municipal District of Bonnyville.

In 2021 we were budgeting for diesel fuel costs of less than .90 cents per litre. In our 2022 budget we have adjusted those numbers to over $1.65 per litre. That increase alone means an increase over our “aver age” fuel expenses of approximately $600,000. These increased trans portation costs are also felt by the M.D. in all the goods and services that are shipped to the M.D. in the form of additional fuel surcharges and increased shipping rates. The supply chain issues have created multi-year waiting lists and significant cost increases for heavy equip ment such as graders and large trucks. This heavy equipment is vital to our operation and to our M.D. as it forms the backbone of the services we provide to those lucky enough to call the M.D. of Bonnyville home.

The wrap up of the 2021 budget cycle and the final approvals of the 2022 budget are complete. We have attached a copy of the 2021 au dited financial statement for everyone’s review, and as indicated, the M.D.’s financial status is all in good order.

I am always pleased to chat with our res idents on any concerns or questions you may have so feel free to contact myself at your AlSincerely,convenience.Hoggan

In 2021 we completed several major pro jects. The firehalls in both Fort Kent and Ardmore were completed and the keys were given to the Bonnyville Regional Fire Authority in November of 2021. The covered outdoor rinks in Cherry Grove and Ardmore were also completed and were very busy over the winter months. The airport saw the creation of a new taxiway and some major repairs to existing infrastructure.

The Province of Alberta’s Municipal Government Act (MGA) legislates that Council must adopt an operating budget (Section 242) and a capital budget (Section 245) for each calendar year. The MGA further requires that estimated revenue and transfers must be sufficient to pay for the estimated expenditures and transfers. The Act requires municipalities to have a balanced budget.

This procurement policy provides the governance framework for purchasing of goods and services and procurement of construction projects for the M.D. of Bonnyville. The policy sets expenditure limits and ensures that items purchased have been approved through the budget process or by Council resolution.

INVESTMENTSPOLICY

TANGIBLE CAPITAL ASSETS POLICY

KEY FINANCIAL Principles, Practices & Policies //

This policy defines what is considered a tangible capital asset and its purpose is to set internal guidelines on the capitalization thresholds and the amortization methods to be used. It provides direction to all departments for recognizing and recording tangible capital assets in accordance with Public Sector Accounting Board (PSAB) requirements and compliance with generally accepted accounting principles.

To achieve a balanced budget, the Municipal District of Bonnyville’s budget includes transfers to and from restricted surplus (reserves) as approved in the budget process.

The M.D. maintains a system of internal accounting and administrative controls to ensure the financial information that is presented is relevant, reliable, and accurate and that the assets of the municipality are safeguarded.

SUMMARYPROCUREMENTPOLICYOF

Council has approved several financial policies to ensure good governance, transparency, and fiscal responsibility. These policies govern expenditures, investments, and tangible capital assets. A summary of the policies can be found below, while the policies in their entirety can be found online at md.bonnyville.ab.ca/419/

This policy provides guidelines to govern the management of the M.D.’s surplus funds and investment Theportfolio.objective of the policy is to ensure adherence to statutory requirements per the MGA, preservation of capital, maintenance of liquidity, and maximization of returns.

BALANCED BUDGET

FINANCIAL MANAGEMENT & CONTROL

The accounting practices of the M.D. of Bonnyville conform to Canadian Generally Accepted Accounting Principles for local governments and the Consolidated Financial Statements are prepared using the accrual method basis of accounting in accordance with Public Sector Accounting Standards.

The M.D. prepares its budget using the modified accrual basis. Expenses are recognized as they are incurred and measurable based upon receipt of goods, services, and/or legal obligation to pay. The key difference between the basis of accounting (accrual) and basis of budgeting (modified accrual) is that the M.D. does not budget for amortization. The M.D. of Bonnyville also recognizes the impact on operating costs of capital projects. These operating costs are included in the budget in the year in which the expenditure is to be incurred. All operating costs associated with capital projects are discussed with Council prior to the approval of the capital project.

AUDIT

FUND ACCOUNTING

FINANCIAL REPORTING

Revenues are budgeted based on trends and responsible, conservative practices. All changes in capacity are reflected in budgeted revenues. Revenue is accounted for in the period in which the transactions or events occurred that gave rise to the revenue.

Expenses are recognized in the period that goods and services have been acquired, when liability is incurred, or transfers are due. Expenditures may only be incurred if it is included in the approved operating or capital budget, approved by Council through resolution, or required for an emergency, as defined in policy 2A.002 –Expenditures Not Included in Budget.

BUDGETING

The MGA requires that Council appoint one or more auditors for the municipality and to have the auditor present an annual financial statement to Council. The financial statements of the M.D. of Bonnyville are audited on an annual basis, with the information presented directly to Council by the auditor. The document can be found in the appendices section of this document and online at bit.ly/ MDBFinancialStatements. Residents and ratepayers can also obtain a physical copy from the front desk of the M.D.’s Main Administration building.

RESERVES

ACCOUNTING PRACTICES

EXPENSES

REVENUES

The M.D. of Bonnyville has established specific restricted surplus (reserve) funds for specific purposes. These reserves are to provide for emergent financial needs, stabilize tax rates and to set aside funds to replacement of vehicles, machinery and equipment, infrastructure, and facilities. These reserves are funded by transfer as approved in the annual budget. All transfers in and out of reserves are approved by

Monthly expenditure reports are sent to each department for review, and monthly disbursement reports are presented to Council. Also, on a quarterly basis, financial reports are presented to Council with detail of all unbudgeted expenditures approved by Council motion and cash position.

ACCOUNTING

The M.D. does not use fund accounting. However, the municipality has reserves held for specific purposes/ future projects. The budget includes transfers to and from reserves. These types of transfers are reported in the year-to-year change in Accumulated Surplus.

Council was pleased to see residents attend each location and thank all of those that took the time to come by and ask important questions about their community. Some of the information presented included:

Willow Prairie Hall (La Corey)

RCMP Hall (Glendon)

• Information on economic development, projects, and asset management initiatives pertaining to Planning & Development.

• The latest from Transportation & Utilities, such as future or carry over projects and maintenance initiatives.

• An overview of services, budget information, and useful resources, such as the Voyent Alert! system from Public Safety.

November 27, 2021

November 30, 2021

CITIZEN ENGAGEMENT

• Statistics and information on projects from Parks, Recreation & Culture, including highlights from Kinosoo Ridge Resort.

Due to the COVID-19 pandemic, the Municipal District of Bonnyville had been unable to host in-person open houses. However, in November of last year, M.D. of Bonnyville Council was happy to bring back in-person Budget Information Sessions where staff presented information to residents about the Draft 2022 Budget.

Ardmore Community Hall

• Waste and recycling information including planned upgrades and project information from the Waste Services department.

November 29, 2021

WereSessionsInformationHeld:

• A draft of the 2022 Capital and Operating Budgets.

• An overview of the Corporate Services Department including key priorities for 2022.

Cherry Grove Hall

• Information about Agriculture Services including updates on the Clubroot education and pest programs.

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• An update from the Bonnyville Regional Fire Authority including planned projects and budget highlights.

November 27, 2021

2 0 0 Asset

1 1 1 G.M., Infrastructure Services 1 1 1 G.M., Environment & Protective Services 1 1 1 TOTAL 10 10 11

4 4 4 Human

8 8 9 Occupational

5 6 6 Waste

FullPermanentTime/ Part Time

14 13 13 Agriculture

/

G.M., PLANNING & COMMUNITY

SERVICES

Infrastructure & Operations (Welders / Mechanics) (Water / Wastewater) Services ENVIRONMENTAL & PROTECTIVE

11 11 12 Utilities

Public Safety Services Services Health & Safety

1 1 1

11 12 13 Information

0 0 2 GIS 1 1 1 Environmental 2 2 2 Parks 5 5 8 Kinosoo 4 4 10 TOTAL 19 19 31 G.M.,

A review of organizational operations was completed by the leadership team with a view to identifying operational gaps. This review identified that many departments are working over-capacity and need additional resources to deliver services to our residents whilst limiting exposure to risk and avoiding burnout of staff.

BudgetSTAFFING//

2 2 2 Executive Assistant 1 0 1 Legislative Services 2 3 3 G.M., Planning

OFFICE 2020 2021 2022

Planning & Development Codes Management CORPORATE SERVICES

7 6 4 Assessment 3 3 7 Records

2 2 3 TOTAL 29 29 32

CAO

5 7 8 Safety

1 1 1 G.M., Corporate

Administrative Services Management Services Technology Resources

Marketing Communications & Community Services Services

2 2 1 Financial

G.M., INFRASTRUCTURE SERVICES

35 39 40 Operations

The M.D. of Bonnyville recognizes its employees as one of its greatest resources and will continue, on an annual basis, to review the human resources required to deliver the service levels required by the municipality.

SERVICES

2 2 2 Administrative

4 2 3 TOTAL 52 54 57 G.M.,

CHIEF ADMINISTRATIVE

Council - 684,200

120,000,00090,000,00060,000,00030,000,0000 axationT Council Fire otectionPr Services Infrastructure Waste Management Agricultural Services Kinosoo Ridge HillSkiGeneral Governance Corporate Services Public Safety &Water Sewer &Planning Development Parks, Recreation Culture& 61% 17% 6%5% 25% 34% 8% 4% 7% 1% 2%0% 2% 0% 0% 0% 4% 3% 6% 1% 2% 2% 3% 0% 2% 5% REVENUE & EXPENSES BY DEPARTMENT Revenue Expense2020 Annual Report | info.business@email.com | www. business .com Annual Report | Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-2652020 BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca

Taxation 101,124,695 42,249,735

Agricultural Services 959,031 3,582,464

Corporate Services 578,264 6,693,303

Water & Sewer 3,266,721 4,186,872

Fire Protection Services 4,333,354 9,096,207

Transfers to/from Capital 3,970,080 3,970,080

Parks, Recreation & Culture 9,601,420 13,275,684

General Governance 8,266,848 8,750,682

Public Safety 832,491 4,019,311

Infrastructure 27,139,778 54,935,292

Planning & Development 589,110 2,727,217

Kinosoo Ridge Ski Hill 6,819,677 10,925,542

TOTAL $ 167,830,289 $ 167,830,289

Waste Management 348,820 2,733,700

REVENUES EXPENSES

BudgetCONSOLIDATED//2022

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

TOTAL OPERATING EXPENSES $ 115,328,912 $ 91,514,220 $ 94,178,992 $ 95,206,105

Fines and Penalties 461,000 461,000 461,000 461,000

NET OPERATING REVENUE (EXPENDITURE) $ 0 $ 22,636,264 $ 19,971,492 $ 18,717,979 BUDGET +(789)-7365-265-253

Debenture Principal & Interest 1,185,302 1,155,410 1,190,026 1,225,749

EXPENSES

Sales and User Charges 4,876,912 4,828,867 4,828,867 4,828,867

Requisitions from Other Agencies 37,876,098 18,012,903 18,553,290 19,109,888

Return on Investments 1,340,000 1,340,000 1,340,000 1,340,000

Salaries, Wages & Benefits 23,377,902 23,038,300 23,729,700 24,441,500

REVENUES

Telephone & Technology 1,061,990 1,092,500 1,125,300 1,158,900

Census & Elections - - - -

Insurance 589,841 607,600 625,700 644,300

Transfers from Reserves 6,827,189 6,477,190 6,477,190 6,477,190

Other Expenses 4,373,637 4,504,846 4,639,991 4,779,191

Transfer to Reserves 5,129,314 4,115,484 4,186,584 2,542,600

Transfers to Other Local Government 6,326,523 6,516,319 6,711,808 6,913,163

Materials, Goods & Supplies 17,701,700 20,358,040 20,968,787 21,598,142

Contracted Services 6,940,066 4,965,500 5,114,300 5,267,600

Grants 1,049,116 860,036 860,036 633,636

Training & Development 650,215 844,400 869,600 895,200

OPERATING

Grants to Other Organizations 5,250,044 5,379,619 5,512,905 5,650,172

Utilities 896,200 923,300 951,000 979,700

Taxes, Requisitions & Local Improvement Levies 100,774,695 100,183,392 100,183,392 100,183,392

| Fax : +(364)-9783-634-265 | Annual Report 2121md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

Contributed Assets - - - -

TOTAL OPERATING REVENUES $ 115,328,912 $ 114,150,485 $ 114,150,485 $ 113,924,085

Summary // 2121Business Proposal | info.business@email.com | www. business .com Tele :

Transfer to Capital Budget 3,970,080

Transfers from Capital Reserves 45,264,877 3,897,000 3,347,000 3,347,000

Proceeds from Sale - 23,000 23,000 23,000 Capital Grants 3,266,420 5,400,000 5,400,000 5,400,000

CAPITAL EXPENDITURES

CAPITAL REVENUE (EXPENDITURE)

NET $ 0 ($ 24,215,207) ($ 31,160,500) ($ 18,968,000)

Transfer from Operating Budget (Taxation) 3,970,080

TOTAL CAPITAL EXPENDITURES $ 52,501,377 $ 33,535,207 $39,930,500 $ 27,738,000

2022 BUDGET FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

CAPITAL REVENUES

Engineered Structures 40,313,095 29,520,207 36,465,500 24,273,000 Buildings 417,156 - -Machinery & Equipment 6,210,302 2,065,000 1,985,000 2,065,000 Vehicles 5,560,824 1,950,000 1,480,000 1,400,000

FUNDING SOURCES (CAPITAL BUDGET)CAPITAL EXPENDITURES BY TYPE 11%Machinery&Equipment Vehicles11%Buildings1% StructuresEngineered 77% BudgetCAPITALSummary // 11%Machinery&Equipment Vehicles11%Buildings1% StructuresEngineered 77% 86% Transfer from ReserveCapital 8%Transfer from Operating Budget (Taxation)6%CapitalGrants2222 Annual Report | info.business@email.com | www. business .com Annual Report | Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-2652222 BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca

TOTAL CAPITAL REVENUES $ 52,501,377 $ 9,320,000 $ 8,770,000 $ 8,770,000

BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 4,336,185 4,336,185

EQUIPMENT REPLACEMENT

Purpose: To fund repairs of bridges.

Inflow: Annual budget contributions.

OPERATIONS

BALANCEENDING2021

OPERATING RESERVES

Purpose: To fund drainage projects.

Target: Estimated contribution to fund bridge repairs at an estimated amount of $3 million per annum. Unspent balance to be transferred to reserves.

BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 2,667,642 2,667,642

Purpose: To fund programs and services related to the delivery of municipal operations. Inflow: Approved budget contributions; carry over of prior year’s approved budget funds for a specific project and annual surplus contributions.

CAPITAL RESERVE

as of May

Target: Sufficient levels to fund one-off drainage projects. Estimated total in 2020 is $9 million.

ROAD IMPROVEMENTS

BALANCEENDING2021

Purpose: To fund construction of trails.

BALANCEENDING2021 BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 26,296 26,296

TRAILS

ReservesFINANCIAL//

BALANCEENDING2021 BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022

* Continued on next page *

Inflow: Approved annual budget contributions. Estimated capital requirement of $30 million per annum. Target: Sufficient levels to fund long-range planning.

Target: One year’s municipal tax levy maximum.

Target: Sufficient annual contributions to ensure equipment can be replaced at the end of its useful life.

Purpose: To fund construction of roads.

BALANCEENDING2021 BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 1,826,301 1,426,457 3,252,758

DRAINAGE

BRIDGE FUND

UTILITIES

Purpose: To fund unforeseen utility repairs and construction.

BALANCEENDING2021 BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 700,000 700,000 As reported 2022. Subject to change.

Purpose: To fund replacement of equipment used within each department. This is calculated based on the useful life of the asset when it was purchased.

Inflow: Approved annual budget contributions.

BALANCEENDING2021 BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022

Inflow: Annual budget contributions.

20,362,178 -1,000,000 19,362,178

22,352,451 -5,949,068 3,367,813 -1,794,387 17,976,809

BALANCEENDING2021 BUDGET2022 ‘22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 4,500,000 4,500,000

Purpose: Funds held to construct an Aquatic Centre within the M.D.

AQUATIC RESERVE

BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 2,631,194 -500,000 2,131,194

Purpose: Reserve held for replacement of the ambulance building.

Inflow: Annual surplus from C2 contributions.

Inflow: Funds are collected as part of the Subdivision approval process. Interest earned on the specific funds.

PROGRAM SPECIFIC RESERVES

BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 535,995 -137,000 398,995

AMBULANCE BUILDING

FINANCIAL RESERVES (continued)

COMMUNITY ACTION GRANT RESERVE (FORMERLY INDUSTRY CARES LEGACY FUND - CM DEC 22, 2021)

BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 491,780 491,780

BALANCEENDING2021

DISASTER

PARK AND SCHOOL RESERVE (CASH IN LIEU OF MUNICIPAL RESERVES)

BALANCEENDING2021

RECREATION - CENTENNIAL CENTRE (C2)

BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 199,306 199,306

Purpose: To fund public parks, recreation areas, or school authority developments as are allowed by section (671) 2 of the MGA

Purpose: Reserve held for development of Park and Recreation infrastructure.

PARKS & RECREATION DEVELOPMENT FUND

BALANCEENDING2021 BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 40,500 40,500

Purpose: Reserve held in case of a disaster.

BUDGET2022 '22(RELATEDTRANSFERSTOPRIORYEAR) COMMITTEDBYCOUNCILMOTION BALANCEENDING2022 380,934 -100,000 -125,000 155,934

Target: 50% of annual budget for the C2 Centre.

BALANCEENDING2021

Purpose: Reserve held for capital purchases and operating expenses at the C2 Centre.

BALANCEENDING2021

Glendon Agricultural Society $ 150,000 $ 150,000

Alexander Community Hall $ 25,000 $ 25,000 Ardmore Community Society $ 25,000 $ 25,000

Cold Lake Seniors' Society $ 15,000 $ 15,000 Glendon Seniors' Society $ 15,000 $ 15,000 Dupre Community League $ 5,000 $ 5,000

Willow Prairie Agricultural Society $ 25,000 $ 25,000

Cold Lake Museums $ 25,000 $ 25,000

Bonnyville & District Historical Society $ 25,000 $ 25,000 Cherry Grove Recreation & Agricultural Society $ 25,000 $ 25,000

Cold Lake Agricultural Society $ 20,000 $ 20,000

Franchere Social Community Centre $ 5,000 $ 5,000 North Shore Heights / Shay Cho Bay $ 5,000 $ 5,000

Lessard Community Centre $ 25,000 $ 25,000

Riverhurst Community Hall $ 25,000 $ 25,000

Ardmore Seniors' Society $ 25,000 $ 25,000 Beaverdam Community Society $ 25,000 $ 25,000

Goodridge Social & Agricultural Society $ 25,000 $ 25,000

Fort Kent Senior Citizens' Centre $ 25,000 $ 25,000

Sandy Rapids Community Hall $ 25,000 $ 25,000 Therien Community League $ 25,000 $ 25,000

OTHER AGENCIES Bonnyville & District Chamber of Commerce $ 17,000 $ 17,000 Cold Lake Regional Chamber of Commerce $ 17,000 $ 17,000 Bonnyville Health Foundation $ 10,000 $ 1,000 Cold Lake Hearts for Healthcare $ 10,000 $ 10,000 Bonnyville Municipal Library $ 173,087 $ 173,087 Cold Lake Public Library $ 79,790 $ 83,484 ANNUAL REQUISITIONS FCSS - Bonnyville $ 332,925 $ 332,925 FCSS - Cold Lake $ 154,355 $ 154,355 Seniors' Transportation Grant $ 30,000 $ 30,000 * Agency contributions are based on the successful application of the non-profit societies and community halls, as per the Community Association Operating Grant Policy. AGENCY CONTRIBUTIONS 2525Business Proposal | info.business@email.com | www. business .com Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-265 | Annual Report 2525md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

SOCIETIES & COMMUNITY HALLS * 2021 2022

Eastbourne Community Hall $ 25,000 $ 25,000

Flat Lake Community Hall $ 25,000 $ 25,000

Land of the Lakes Recreation Society $ 25,000 $ 25,000

Bonnyville Agricultural Society $ 20,000 $ 20,000

Bonnyville Seniors' Society $ 15,000 $ 15,000

OPERATING B UDGE T FUNDING SOURCES Grants Sales & User Charges Taxes, Requisitions & Local TReturnFinesImprovement&PenaltiesonInvestmentsransferfromReservesContributedAssets 0 30,000,000 60,000,000 90,000,000 120,000,000 4,876,912 // 4% 1,049,116 // 1% 100,774,695 // 87% 461,000 // 1% 1,340,000 // 1% 6,827,189 // 6% 0 // 0% SourcesFUNDING // CAPITAL BUDGET FUNDING SOURCES Transfer from Capital Reserves Proceeds from Sale Capital Grants Transfer from Operating Budget (Taxation) 0 12,500,000 25,000,000 37,500,000 50,000,000 45,264,877 // 86% 3,266,420 // 6% 3,970,080 // 8% 0 // 0%2626 Annual Report | info.business@email.com | www. business .com Annual Report | Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-2652626 BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca

TOTAL OPERATING REVENUES $ 101,124,695 $ 100,533,392 $ 100,533,392 $ 100,533,392

EXPENSES

Ward 6 Requisition 19,759,721 $ - $ - $Education Requisition 16,734,451 17,236,485 17,753,579 18,286,186

Designated Industrial Property Requisition 438,208 451,354 464,895 478,842

TOTAL OPERATING EXPENSES $ 42,249,735 $ 22,507,449 $ 23,182,672 $ 23,878,152

Other Expenses 4,373,637 4,494,546 4,629,382 4,768,264

Senior Housing Levy 972,321 381,005 381,005 381,005 Ardmore & Fort Kent Water Supply Levy 26,787 26,800 26,800 26,800

The Municipal District of Bonnyville collects taxes to fund municipal services delivered within its boundaries to M.D. residents. Taxes are also collected on behalf of the Province of Alberta to support the funding of public education and on behalf of the Lakeland Lodge and Housing Foundation to support local seniors’ housing.

Oil & Gas Drilling Levy - - - -

Designated Industrial Tax Levy 448,629 448,629 448,629 448,629 Penalties on Arrears 350,000 350,000 350,000 350,000

Senior Housing Requisition 943,718 325,064 334,816 344,860

NET TAXATION REVENUES $ 58,874,960 $ 78,025,943 $ 77,350,720 $ 76,655,240

M.D. TAX COLLECTION RATE: 2018: 98.72% 2019: 98.48% 2020: 98.34%

DEPARTMENT ROLE

Alberta Muncipal Affairs has predetermined that a municipality’s residential and farmland tax revenues do not account for more than 95% of the municipality's total tax revenue. This measure is used to indicate the municipality's ability to rely on it’s non-residential tax base to generate its tax revenues.

REVENUES

Municipal Tax Levy 82,735,583 82,735,583 82,735,583 82,735,583 Education Tax Levy 16,591,375 16,591,375 16,591,375 16,591,375

BUDGET2022

FORECASTBUDGET2023

PERFORMANCE MEASURES

M.D. TAX BASE RATIO: 2018: 14.38% 2019: 14.25% 2020: 13.05%

FORECASTBUDGET2024

Alberta Municipal Affairs has predetermined that a municipality should collect at least 90% of the municipal taxes levied in any year.

FORECASTBUDGET2025

Census & Elections - - -Other Expenses 10,300 10,609 10,927

OPERATING EXCESS (SHORTFALL) ($ 483,834) ($ 787,974) ($ 1,056,923) ($ 1,334,039)

Requisitions from Other Agencies

Grants to Other Organizations 410,557 422,874 435,560 448,627

Salaries, Wages & Benefits 1,306,412 1,341,200 1,381,200 1,422,500

Debt Principal & Interest 7,000 7,210 7,426 7,649

Return on Investments 1,340,000 1,340,000 1,340,000 1,340,000

Training & Development 155,840 140,300 144,300 148,300

Transfers from Reserves 6,353,689 6,353,689 6,353,689 6,353,689

EXPENSES

Contributed Assets

REVENUES

Taxes, Requisitions & Local Improvement Levies

TOTAL OPERATING REVENUES $ 8,266,848 $ 8,200,768 $ 8,200,768 $ 8,200,768

Sales & User Charges 313,267 313,267 313,267 313,267

TOTAL OPERATING EXPENSES $ 8,750,682 $ 8,988,742 $ 9,257,691 $ 9,534,807

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

Grants 259,892 193,812 193,812 193,812

Contracted Services 234,460 98,900 101,800 104,800

Transfer to Reserves - - - -

TelephoneUtilitiesInsurance & Technology 20,990 21,600 22,200 22,800

Fines and Penalties

Materials, Goods & Supplies 288,900 430,040 442,787 456,042

Intermunicipal Cooperation Plan 6,326,523 6,516,319 6,711,808 6,913,163

Telephone & Technology 12,600 13,000 13,400 13,800 TOTAL OPERATING EXPENSES $ 684,200 $ 705,400 $ 726,800 $ 748,700 OPERATING EXCESS (SHORTFALL) ( $ 684,200) ( $ 705,400) ( $ 726,800) ( $ 748,700) DEPARTMENT ROLE theencompassesservicesLegislativeexpenses of the theachievablebestandM.D.advocateendeavoursmembers.andBonnyville’sDistrictMunicipalofReevesixCouncilCounciltoforallresidentstoprovidethequalityoflifewithinM.D.’sborders. COUNCIL PERFORMANCE MEASURES Alberta Muncipal Affairs has defined that the muncipality meets this performance measure when the number of candidates exceeds the number of councillor posititons. RATIO OF CANDIDATES TO COUNCIL POSITIONS (2021): 21 CANDIDATES TO 7 COUNCIL POSITIONS 2929Business Proposal | info.business@email.com | www. business .com Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-265 | Annual Report 2929md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

MINISTRY INTERVENTION: 2018: NONE 2019: NONE 2020: NONE 4,300 152,600

Training & Development 139,650 144,000 148,300

PERFORMANCE MEASURES

ACCUMULATED SURPLUS: 2018: $119,994,600 2019: $127,445,491 2020: $127,676,887

DEPARTMENT ROLE

General Governance includes the Chief Administrative Officer, Legislative Services, Employee Health & Safety, and Marketing & Communications. The Municipal District of Bonnyville is proud to support the residents within its boundaries through the Intermunicipal Collaboration Frameworks (ICFs) which provides funding to the Town of Bonnyville, City of Cold Lake, and Village of Glendon. The M.D. also supports the community through additional grants and contributions to initiatives through Bonnyville, Cold Lake, Glendon and other local organizations. The M.D. funds marketing campaigns to encourage tourism to the M.D. of Bonnyville region.

Alberta Municipal Affairs requires municipalities to have a positive surplus. It is a requirement for the municipality to have total assets in excess of its total debt. This measure has been met over the last three years. Alberta Municipal Affairs will intervene when there is evidence of significant concern brought forward. The Minister will perform a viability review and issue directives for the municipality to follow.

REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 TOTAL OPERATING REVENUES $ - $ - $ - $EXPENSES Salaries, Wages & Benefits 527,950 544,300 560,900 578,000 Materials, Goods & Supplies 4,000 4,100 4,200

FINANCE

Human Resources created two new handbooks — one for fulltime staff and one for seasonal staff, which centralizes all internal policies and procedures.

Looking forward in 2022, The IT Department is spearheading a two-year project to implement an electronic records management environment for the organization.

INFORMATION TECHNOLOGY

With updates coming to the Shaw House at Vezeau Beach, the Bonnyville Visitor Information Centre (VIC) has temporarily been relocated to the front lobby of the M.D.’s Main Administration Building, with our Administration team offering VIC services.

Corporate Services will complete a long-term financial planning and a long-term tax strategy.

The Finance Department celebrated winning the Distinguished Budget Award for the 2021 Budget and Business Plan and an award for Financial Reporting for the 2020 Annual TheReport.Finance Department, in conjunction with all the other departments in the M.D., created a Master Rates and Fees Bylaw, which gives residents and staff one central document to find all the information they need about fees and rates in the M.D.

In the continuing trend to make processes more efficient within the M.D. organization, new software for financial reporting will enable the M.D. to create and present financial statements in a consistent manner, allowing the Finance Department to match the reporting structure of the M.D.’s external auditors.

IT creates and maintains an enterprise-level environment that provides IT services and solutions through innovation and growth for staff and residents. This department manages all computer software and hardware, telephone services, and secure access to all buildings. It also provides technical services to neighbouring municipalities and the Bonnyville and District Centennial Centre.

WHERE WE’RE GOING

The Corporate Services Department supports the entire organization, assisting both internal and external customers, as it is home to the Finance, Administration, Property Assessment, Property Tax, Information Technology (IT), and Human Resources (HR) departments.

WHERE WE ARE NOW

Assessors determine the property values for residential, farmland, commercial and industrial properties, and coordinate the receipt of assessment values for linear and designated industrial properties from the province. The Property Tax team is responsible for drafting the Property Tax Rate Bylaw for Council consideration, preparing and mailing the property tax and assessment notices, applying the provincially legislated property tax recovery processes, and responding to property tax inquiries. Property assessment and taxation revenue funds most municipal services and supports the funding of public education.

HR is responsible for all employment-related issues, the administration of the employee benefits programs, and payroll.

The Administration team is responsible for handling all external customer relations, including answering phones and assisting the public with any inquiries. The team also provides internal services such as mail distribution and coordinating office supplies for the entire organization.

On the Finance side, new budgeting software will be coming online for 2023 budget planning.

M.D. Assessors will be out inspecting residential properties in Range 4 this Thissummer.year saw Council approve an increase in the Residential mill rate. This was in response to a requirement by Alberta Municipal Affairs to have a 5:1 tax ratio (where the highest non-residential municipal tax rate could not be more than five times greater than the residential municipal tax rate), as per the Municipal Government Act.

WHERE WE’VE BEEN

ADMINISTRATION

PROPERTY ASSESSMENT & PROPERTY TAXATION

The Finance Department is responsible for the management of the municipality’s financial affairs, including accounts payable, accounts receivable, budgeting, financial reporting, and treasury management.

DEPARTMENT OVERVIEW

So far in 2022, Payroll and IT worked together to update the M.D.’s payroll system, making the process more efficient not only for the Payroll Department, but also for staff.

HUMAN RESOURCES

In May 2021, the M.D. amalgamated the lands formerly known as ID 349 into its borders. As part of the annexation agreement, the M.D. is responsible for dispersing the tax collected from the lands to our urban neighbours, as per the agreement reached with the Province of Alberta.

OPERATING BUDGET

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

EXPENSES

TOTAL OPERATING REVENUES $ 33,700 $ 35,700 $ 35,700 $ 35,700

CAPITAL BUDGET CAPITAL REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 Transfers from Capital Reserves 544,564 250,000 200,000 200,000 TOTAL CAPITAL REVENUES $ 544,564 $ 250,000 $ 200,000 $ 200,000 CAPITAL EXPENDITURES Engineered Structures 123,064 - -Buildings 25,000 - -Machinery & Equipment 346,500 200,000 200,000 200,000 Vehicles 50,000 50,000 -TOTAL CAPITAL EXPENDITURES $ 544,564 $ 250,000 $ 200,000 $ 200,000 NET CAPITAL REVENUE (EXPENDITURE) $ - $ - $ - $63%TOP OPERATING EXPENSE: Salaries, Wages & Benefits 63%TOP CAPITAL EXPENSE: Machinery & Equipment 3131Business Proposal | info.business@email.com | www. business .com Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-265 | Annual Report 3131md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

OPERATING EXCESS (SHORTFALL) ($ 6,115,039) ($ 6,299,800) ($ 6,490,300) ($ 6,686,000)

REVENUES

Contracted Services 586,856 537,700 553,900 570,500

Transfer to Reserves 128,087 131,900 135,900 140,000

Training & Development 139,575 145,600 150,000 154,500

TOTAL OPERATING EXPENSES $ 6,148,739 $ 6,335,500 $ 6,526,000 $ 6,721,700

User Charges 33,700 35,700 35,700 35,700

Utilities 72,500 74,700 76,900 79,200

Materials, Goods & Supplies 217,000 290,700 299,700 308,800

Telephone & Technology 907,960 935,300 963,400 992,300

SalesGrants&

Salaries, Wages & Benefits 3,846,761 3,962,100 4,081,000 4,203,300

Insurance 250,000 257,500 265,200 273,100

Infrastructure completed fit and finish on the Fort Kent Fire Hall and Ardmore Fire Hall and Grader Shop. The fire halls have been handed over to the Bonnyville Regional Fire Authority. Renovations at the Main Office were completed, finishing off the third floor.

WHERE WE’RE GOING

TRANSPORTATION

The Utilities Department saw the commissioning of the new regional waterline running from Cold Lake and providing water to the Town of Bonnyville. Repairs to the liner at the Fort Kent Lagoon have been completed.

WHERE WE ARE NOW

DEPARTMENTOVERVIEW

The Transportation Department maintains almost 2,400 km of M.D.-owned roadways throughout the municipality. From snowplowing to pothole patching, construction and drainage, this department makes sure residents and visitors can move around the M.D. on well cared for roadways and bridges.

INFRASTRUCTURE

In Utilities, the pumps at the Ardmore and Fort Kent water stations will be replaced, allowing for a consistent level of service, while avoiding shutdowns at the bulk water fill stations due to aging equipment.

The Utilities Department maintains and operates the M.D.’s water and sewer systems in Fort Kent and Ardmore, and the sewage lagoon system in Therien.

With future planning documents guiding the department, Transportation will continue to focus on the maintenance and construction of roads, replacement of bridges, and drainage improvements throughout the municipality. You can find the drainage priority map, road classification map, and other road project maps in the pages following this. There is also a chart showing the proposed projects scheduled all the way to 2025. Utilities will continue the maintenance and operation of the water and sewer systems, offering our residents and ratepayers seamless, efficient, and topnotch service.

Infrastructure will continue with its maintenance of M.D. buildings and will assist with renovations at Kinosoo Ridge.

INFRASTRUCTURE SERVICES

WHERE WE’VE BEEN

UTILITIES

The M.D.equipmentforDepartmentInfrastructureisresponsiblethemaintenanceofallandupkeepofbuildingsincludingthe Main Administration Office, Public Works Shop, the chalet at Kinosoo Ridge, and more.

This year, Transportation's focus is on finishing projects that have been on the books for some time. In the first four months, the department has overseen the completion of the Thin Lake River Bridge Replacement Project . Spring melt meant crews were out in full force steaming culverts in attempt to mitigate any flooding and allowing drainage courses to efficiently move excess water, avoiding damage to municipal infrastructure (roads) and ratepayers’ property.

With the introduction of the drainage priority map, road priority map, and road classification map, the Transportation Department has had clear direction on projects. Several drainage projects, mitigating flooding in rural subdivisions, have been completed. This past winter saw an immense amount of snow dropped on our area, and the staff in Transportation were kept remarkably busy keeping roadways clear and finding novel places to put snow piles to ensure spring melt wouldn’t negatively affect any infrastructure.

Insurance 204,000 210,100 216,400 222,900

Telephone & Technology 45,240 46,600 48,000 49,400

$

REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

TOTAL CAPITAL EXPENDITURES $ 25,175,857 $ 28,895,207 $ 35,840,500 $

TOTAL OPERATING REVENUES $ 1,799,500 $ 1,749,500 $ 1,749,500 $ 1,749,500

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

OPERATING BUDGET

CAPITAL EXPENDITURES Engineered Structures 23,906,317 27,470,207 34,415,500 22,223,000 Buildings - - -Machinery & Equipment

150,000 150,000

Grants - - - -

Transfers from Capital Reserves 22,073,858 1,425,000 1,425,000 1,425,000 Proceeds from Sale - 5,000 5,400,000 5,400,000 5,400,000 6,830,000 6,830,000 6,830,000 568,000 1,275,000 1,275,000 1,275,000 701,540 150,000 23,648,000

TOTAL OPERATING EXPENSES $ 29,759,435 $ 29,732,284 $ 30,572,784 $ 29,721,300

EXPENSES

Capital Grants 3,266,420

Utilities 364,000 374,900 386,100 397,700

REVENUES

Contributed Assets - - - -

Vehicles

Sales & User Charges 1,799,500 1,749,500 1,749,500 1,749,500

CAPITAL

Training & Development 28,000 80,700 83,400 86,100

$

TOTAL CAPITAL REVENUES $ 25,340,278 $

Debenture Principal & Interest 1,088,037 1,120,600 1,154,200 1,188,800

Contracted Services 2,617,000 1,097,000 1,129,800 1,163,700

Salaries, Wages & Benefits 8,082,508 8,268,400 8,516,400 8,771,800

CAPITAL BUDGET

Materials, Goods & Supplies 14,774,500 16,816,700 17,321,200 17,840,900

OPERATING EXCESS (SHORTFALL) ($ 27,959,935 ) ($ 27,982,784 ) ($ 28,823,284 ) ($ 27,971,800 )

5,000 5,000

Transfer to Reserves 2,556,149 1,717,284 1,717,284 -

2022 RIP & RELAY PROJECTS PROJECT ROAD FROM TO LENGTH (M) A TWP RD 630 HWY 892 RR 433 4 B TWP RD 590 RR 490 M.D. BOUNDARY 0.5 C SUNSET BEACH ROAD 1 D RR 435 HWY 55 PINE MEADOWS SUBDIVISION 1 E TWP RD 622 RR 443 HWY 892 2 F TWP RD 622 RR444 RR 450 2 G TWP RD 612 HWY 881 M.D. BOUNDARY 1.5 2022 SHOULDER PULL PROJECTS PROJECT ROAD FROM TO LENGTH (M) 1 RR 420 RR 423 NORTH OF TWP RD 653 5 2 RR 410A / 411 HWY 55 BORDER PIT 5 3 TWP RD 602 RR 442 RR 445 3 4 TWP RD 605 RR 440 RR 442 2 5 TWP RD 620 RR 485 HWY 881 4 6 TWP RD 630 HWY 881 RR 410 3 7 TWP RD 624 RR 485 EAST 1 8 RR 471 TWP RD 640 RR 473 6.5 35Business Proposal | info.business@email.com | www. business .com 35md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

PROJECTSBRIDGE

2022 BRIDGE PROJECTS YEAR PROJECT WATER COURSE LOCATION CROSS ROAD WORK TYPE 2022 A Frog Lake Tributary RR 433 TWP RD 580 Bridge Culvert 2022 B Thinlake River RR 474 HWY 660 Standard Bridge 2022 C Columbine Creek RR 492 TWP RD 620 Bridge Culvert 2022 D Cattlepass RR 432A TWP RD 642 Standard Bridge 2022 E Brown Creek RR 420 TWP RD 655 Bridge Culvert 2022 F Muriel Creek RR 434 HWY 28 Standard Bridge

TYPE 2023 G

2024 J

2025 N

2025 O

2026 T

FUTURE BRIDGE PROJECTS (2023-2026) ROAD WORK Thinlake River Tributary RR 480 TWP RD 610 Bridge Culvert Manatokan Creek RR 474 RD 635 Standard Bridge Manatokan Creek RR 471 HWY 55 Standard Bridge Jackfish Creek RR 451A TWP RD 642 Standard Bridge Creek West of Glendon TWP RD 610A HWY 882 Bridge Culvert Manatokan Creek TWP RD 630 RR 471 Bridge Culvert Little Bear Creek RR 423A TWP RD 643 Bridge Culvert Columbine Creek RR 491 TWP RD 613 Standard Bridge Marie Creek TWP RD 634 RR 425 Bridge Culvert Muriel Creek Tributary RR 435 TWP RD 615A Bridge Culvert Beaver River Tributary RR 433 TWP RD 624 Standard Bridge Manatokan Creek Tributory RR 4 80 TWP RD 6 40 Bridge Culvert Muriel Creek Tributary RR 4 35 HWY 28 Bridge Culvert Rita Creek RR 4 30A

YEAR PROJECT WATER COURSE LOCATION CROSS

2025 Q

2026 S

TWP

2026 U

2023 I

2024 L

2025 P

TWP RD 6 03 Bridge Culvert Muriel Creek Tributary RR 4 43 TWP RD 6 21 Bridge Culvert

2023 H

* Projects dependant upon Council budget approval 37Business Proposal | info.business@email.com | www. business .com 37md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

2026 R

2024 K

2025 M

Sales & User Charges 541,400 541,400 541,400 541,400

Contracted Services 160,000 159,800 164,700 169,600

Grants to Other Organizations 300,000 309,000 318,300 327,800

Transfers from Reserves 93,500 93,500 93,500 93,500

OPERATING EXCESS (SHORTFALL) ($ 787,151 ) ($ 508,500 ) ($ 543,600 ) ($ 579,400 )

Fines & Penalties 7,000 7,000 7,000 7,000

Salaries, Wages & Benefits 342,831 348,000 358,600 369,400

Transfer to Reserves 261,746 18,100 18,600 19,200

TOTAL OPERATING REVENUES $ 641,900 $ 641,900 $ 641,900 $ 641,900

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

EXPENSES

TOTAL OPERATING EXPENSES $ 1,429,051 $ 1,150,400 $ 1,185,500 $ 1,221,300

OPERATING BUDGET

WATER & SEWER

Insurance 12,450 12,900 13,300 13,700

Materials, Goods & Supplies 160,000 164,800 169,900 175,000

Telephone & Technology 9,760 10,000 10,300 10,600

CAPITAL BUDGET CAPITAL REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 Transfers from Capital Reserves 2,624,821 - -TOTAL CAPITAL REVENUES $ 2,624,821 $ - $ - $CAPITAL EXPENDITURES Engineered Structures 2,582,821 200,000 200,000 200,000 Machinery and Equipment 175,000 Vehicles - - -TOTAL CAPITAL EXPENDITURES $ 2,757,821 $ 200,000 $ 200,000 $ 200,000 NET CAPITAL REVENUE (EXPENDITURE) ( $ 133,000) ( $ 200,000) ( $ 200,000) ( $ 200,000)3838 Annual Report | info.business@email.com | www. business .com Annual Report | Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-2653838 BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca

REVENUES

Debenture Principal & Interest 90,264 27,600 28,400 29,300

Training & Development 8,000 13,500 14,000 14,500

Utilities 84,000 86,700 89,400 92,200

WHERE WE ARE NOW

Council approved a pilot project to remove the bin site at Riverhurst Hall. The site was no longer large enough to handle the traffic and amount of waste. After a trial period of having residents use the bins at the Hilda Lake Landfill, Council decided in July to build a new

Over the past five years, the M.D.’s Assistant Ag Fieldman and Pest Control Officer have been heavily involved in helping to slow the spread of Clubroot, a disease which infects canola crops. There has also been a concentration on pest reduction and control through the Alberta Rat Program and the M.D.’s wolf and coyote bounty program.

The Public Safety Department enforces M.D. bylaws, monitors traffic on all M.D. roadways and secondary provincial highways, provides the School Resource Officer program to 23 schools in the region, conducts commercial vehicle inspections, and works on reducing rural crime through patrols and resident education. Public Safety works collaboratively with industry partners to conduct commercial vehicle inspections and, on request, provide education presentations. Public Safety often partners with other law enforcement agencies while conducting joint enforcement or education projects.

This year, Ag Services will again continue to concentrate on roadside vegetation control. This program improves sightlines, making travel on M.D. roads safer for residents and visitors. Clubroot management and noxious weed control will also continue to be a priority.

WHERE WE’RE GOING

BONNYVILLE REGIONAL FIRE AUTHORITY

Waste Services continues to find new and innovative ways to redirect waste from landfills through various recycling and diversion initiatives as well as continuing to find efficiencies in our waste handling techniques to ensure we remain fiscally responsible.

DEPARTMENTOVERVIEW

AGRICULTURAL SERVICES

WASTE SERVICES

The BRFA continues with its wildfire mitigation projects, with the latest FireSmart program being completed in Crane Lake this past spring. Phase 3 of the Evergreen Estates FireSmart program is scheduled for Fall 2022.

Staff in the Waste Services Department will continue to investigate alternative ways of handling Class 2 and 3 waste as well as the continuous evaluation of all programs and services. The waste education program at local schools will also resume after a brief hiatus due to COVID-19.

The BRFA will renovate the former Kopala Building, which it is purchasing from the M.D. The building will become the new BRFA operations centre for EMS, Station 5 (Bonnyville), and 911 Services. Council approved a tender that will see five fire trucks replaced over the next three years.

ENVIRONMENTAL & PROTECTIVE SERVICES

WHERE WE'VE BEEN

This department is responsible for weed control, soil and water resource conservation, and pest management. Some of the programs the Agriculture Services Department provides include Clubroot detection and management, and other crop surveillance programs. The pest control programs include rat and rabies surveillance programs, beaver control programs, and livestock predation programs that include the coyote and wolf reduction. The M.D. has a vast vegetation program that includes roadside, subdivision and hamlet mowing programs and over 3,000 weed inspections annually.

bin site closer to Riverhurst, on an M.D.-owned quarter section.

The M.D. is a member of the Bonnyville Regional Fire Authority, which provides fire and emergency services across the M.D. and in the Town of Bonnyville. The BRFA, which relies on volunteers to staff the seven fire stations, is partially funded by the M.D.

PUBLIC SAFETY

In 2022, the Waste Services Department will continue to make improvements at waste transfer sites to ensure we continue to offer the high level of service residents have come to expect. The threeyear Agricultural Plastics Recycling Pilot Project has been extended until Fall 2023. The M.D. continues to be a leader in Alberta as part of this Thisinitiative.year,

The Waste Services Department is responsible for the M.D.’s seven landfill/ transfer stations, door-to-door waste collection program, a variety of different recycling and diversion programs, the Roadside Cleanup program, and a network of 31 bin sites throughout the municipality.

The Public Safety Department has been focusing on rural crime reduction, including through the Vacant Home Check program in recent years, while School Resources Officers have continued to offer programing throughout the pandemic, with a focus on student mental health. The Bonnyville Regional Fire Authority has taken control of the new fire halls located in Ardmore and Fort Kent.

$

OPERATING BUDGET

REVENUES

CAPITAL BUDGET CAPITAL REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 Transfers from Capital Reserves 655,131 270,000 270,000 270,000 Proceeds from Sale - - -TOTAL CAPITAL REVENUES $ 655,131 $ 270,000 $ 270,000 $ 270,000 CAPITAL EXPENDITURES Engineered Structures - 100,000 100,000 100,000 Machinery & Equipment 550,131 220,000 220,000 220,000 Vehicles 105,000 50,000 50,000 50,000 TOTAL CAPITAL EXPENDITURES $ 655,131 $ 370,000 $ 370,000 $ 370,000 NET CAPITAL REVENUE (EXPENDITURE) $ - ($ 100,000) ($ 100,000) ($ 100,000) 40%TOP OPERATING EXPENSE: Salaries, Wages & Benefits 84%TOP CAPITAL EXPENSE: Machinery & Equipment4040 Annual Report | info.business@email.com | www. business .com Annual Report | Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-2654040 BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca

Transfer to Reserves 259,026 266,800 274,800 283,000

Salaries, Wages & Benefits 1,173,887 1,175,300 1,210,700 1,246,900

AGRICULTURE SERVICES

Grants to Other Organizations 285,000 293,600 302,400 311,400

TOTAL OPERATING REVENUES 303,900 303,900 303,900 77,500

Telephone & Technology 7,320 7,500 7,700 7,900

$

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

Training & Development 18,500 52,500 54,000 55,600

$

Insurance 11,000 11,300 11,600 11,900

$

EXPENSES

OPERATING EXCESS (SHORTFALL) ($ 2,623,433) ($ 2,711,000) ($ 2,801,300) ($ 3,120,400)

Contracted Services 693,600 695,300 716,100 737,600

Grants 226,400 226,400 226,400Sales & User Charges 77,500 77,500 77,500 77,500

Materials, Goods & Supplies 479,000 512,600 527,900 543,600

TOTAL OPERATING EXPENSES $ 2,927,333 $ 3,014,900 $ 3,105,200 $ 3,197,900

OPERATING EXCESS (SHORTFALL) ($ 3,186,820) ($ 3,291,700) ($ 3,399,200) ($ 3,510,300)

Telephone & Technology 12,920 13,300 13,700 14,100

TOTAL OPERATING REVENUES 301,500 $ 301,500 $ 301,500 $ 301,500

TOTAL OPERATING EXPENSES $ 3,488,320 $ 3,593,200 $ 3,700,700 $ 3,811,800

Grants - - - -

Fines & Penalties 102,000 102,000 102,000 102,000

Utilities 22,200 22,900 23,600 24,300

CAPITAL BUDGET CAPITAL REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 Transfers from Capital Reserves 530,991 182,000 182,000 182,000 Proceeds from Sale - 18,000 18,000 18,000 TOTAL CAPITAL REVENUES $ 530,991 $ 200,000 $ 200,000 $ 200,000 CAPITAL EXPENDITURES Machinery & Equipment 226,171 50,000 50,000 50,000 Vehicles 304,820 150,000 150,000 150,000 TOTAL CAPITAL EXPENDITURES $ 530,991 $ 200,000 $ 200,000 $ 200,000 NET CAPITAL REVENUE (EXPENDITURE) $ - $ - $ - $50%TOP OPERATING EXPENSE: Salaries, Wages & Benefits 75%TOP CAPITALVehiclesEXPENSE: 4141Business Proposal | info.business@email.com | www. business .com Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-265 | Annual Report 4141md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

REVENUES

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

1,761,273 1,793,600 1,847,300 1,902,800

Contracted Services 172,000 174,600 179,800 185,200

Transfer to Reserves 192,205 198,000 203,900 210,000

Grants to Other Organizations

Sales & User Charges 199,500 199,500 199,500 199,500

PUBLIC SAFETY

$

Salaries,EXPENSESWages & Benefits

Materials, Goods & Supplies 233,000 242,600 249,800 257,400

Insurance 20,000 20,600 21,200 21,800

Training & Development 15,600 36,700 37,800 38,900

1,059,122 1,090,900 1,123,600 1,157,300

OPERATING BUDGET

CAPITAL BUDGET

$

TOTAL OPERATING EXPENSES $ 2,527,324 $ 2,603,200 $ 2,681,000 $ 2,761,500

Grants - - - -

FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

WASTE SERVICES

CAPITAL

Engineered Structures 161,376 150,000 150,000 150,000 Buildings 25,000 - -Machinery & Equipment 20,000 - -Vehicles - 500,000 -206,376 650,000 150,000 ($

$

$ 150,000 NET CAPITAL REVENUE (EXPENDITURE) $ -

REVENUES

EXPENSES

Materials, Goods & Supplies 250,300 258,900 266,600 274,600

TOTAL CAPITAL REVENUES 206,376 $ 500,000 $ - $ -

Proceeds from Sale - - - -

BUDGET2022

EXPENDITURES

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

Transfers from Capital Reserves 206,376 500,000 - -

Telephone & Technology 8,400 8,700 9,000 9,300

Salaries, Wages & Benefits 1,250,022 1,263,800 1,301,600 1,340,800

Sales & User Charges 142,444 142,400 142,400 142,400

Utilities 13,500 13,900 14,300 14,700

Transfer to Reserves 165,303 170,300 175,400 180,700

Contracted Services 456,100 468,700 482,700 497,100

CAPITAL REVENUES

OPERATING EXCESS (SHORTFALL) ($ 2,384,880) ($ 2,460,800) ($ 2,538,600) ($ 2,619,100)

TOTAL CAPITAL EXPENDITURES $

Grants to Other Organizations 360,000 370,800 381,900 393,400

TOTAL OPERATING REVENUES $ 142,444 $ 142,400 $ 142,400 $ 142,400

$

Insurance 11,000 11,300 11,600 11,900

Training & Development 12,700 36,800 37,900 39,000

OPERATING BUDGET

Transfer to Reserves 698,865 719,100 739,900 761,300 Insurance 4,391 4,500 4,600 4,700

BUDGET

FIRE PROTECTION SERVICES

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 Grants

Materials, Goods & Supplies 115,000 118,500 122,000 125,700

TOTAL OPERATING REVENUES 73,000 $ 40,000 40,000 $ 40,000

$

CAPITAL BUDGET CAPITAL REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 Transfers from Capital Reserves 4,260,354 1,000,000 1,000,000 1,000,000 TOTAL CAPITAL REVENUES $ 4,260,354 $ 1,000,000 $ 1,000,000 $ 1,000,000 CAPITAL EXPENDITURES Engineered Structures - - -Buildings - - -Machinery & Equipment 2,931,500 - -Vehicles 4,260,354 1,000,000 1,000,000 1,000,000 TOTAL CAPITAL EXPENDITURES $ 7,191,854 $ 1,000,000 $ 1,000,000 $ 1,000,000 NET CAPITAL REVENUE (EXPENDITURE) ($ 2,931,500) $ - $ - $55%TOP OPERATING EXPENSE: Grants to Other Organizations 59%TOP CAPITALVehiclesEXPENSE: 4343Business Proposal | info.business@email.com | www. business .com Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-265 | Annual Report 4343md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

OPERATING

$

EXPENSES

REVENUES 33,000

Charges

40,000

Contracted Services 33,000 - - -

Sales & User 40,000 40,000 40,000

OPERATING EXCESS (SHORTFALL) ($ 1,831,353) ($ 1,879,365) ($ 1,928,665) ($ 1,979,465)

- - -

Grants to Other Organizations 1,053,097 1,077,265 1,102,165 1,127,765

$

TOTAL OPERATING EXPENSES 1,904,353 $ 1,919,365 1,968,665 $ 2,019,465

PLANNING COMMUNITY& SERVICES

Planning and Community Services incorporates five departments - Planning & Development, Parks, Recreation & Culture, Kinosoo Ridge Resort, Economic Development, and Asset Management.

DEPARTMENTOVERVIEW

This department is responsible for the maintenance and operations of the M.D.’s recreational facilities, including 12 campgrounds, playgrounds, baseball diamonds, ever-expanding walking/biking trail system, boat and river launch sites, cross-country ski trails at Muriel Lake M.D. Park, and three outdoor ice rinks.

ECONOMIC DEVELOPMENT

ASSET MANAGEMENT

With a new full-time Economic Development Specialist on board in 2022, this department will focus on expanding the economic horizons of the municipality, including business recruitment and retention, and diversifying the current oil and gas/agricultural sector portfolio.

New in 2022, this department will allow for the efficient planning, use, maintenance, and replacement of municipal assets, including everything from buildings, roads and traffic signs to construction equipment and gravel. This department is also home to our GIS/ Mapping section, responsible for housing all asset management data, creating M.D. maps, and maintaining and organizing the M.D.’s Rural Addressing (blue sign) program.

The role of this department within the municipality is to provide administrative services for development of land, building, future planning, rezoning, subdivision, and more. This department issues Safety Code permits, building and development permits, and makes sure all development adheres to not only federal and provincial standards, but the M.D.’s Land Use Bylaw, Municipal Development Plan, and Intermunicipal Development Plans with neighbouring municipalities.

KINOSOO RIDGE RESORT

Located on the shores of Cold Lake, this resort is home to a variety of ski and snowboard runs, terrain parks, and the increasingly popular Tube Park. This year marks the first year of year-round operations with the opening of the Aerial Adventure Park.

44 Annual Report | info.business@email.com | www. business .com44 BUDGET & BUSINESS PLAN | 2022 | md.bonnyville.ab.ca

PARKS, RECREATION & CULTURE

PLANNING & DEVELOPMENT

In Parks & Recreation, the continuation of the expansion of the Cold Lake M.D. Park will continue with the installation of a new boat launch. The department will continue to focus on the evolution of the M.D.’s trail system with its Trails Master Plan and the Intermunicipal Trails Plan with the City of Cold Lake. We will continue to investigate river boat launch development, expanding the French Bay M.D. campground, and upgrading the Beartrap Lake Campground.

In Economic Development, the M.D. welcomed a new specialist in the first half of the year, with a focus on making a truly forward-thinking investment ready and diversified economic plan a reality within the M.D.

In 2022, Planning & Development continues to work on Area Structure Plan reviews, including those for the Hamlets of Ardmore and Cherry Grove. With this year's addition of a Planner, the M.D. is focusing on long-range plans for the municipality, including outlining uses for Municipal and Environmental Reserves. The long-range planning also includes developing policies to guide discretionary uses on M.D. lands, for example, allowing personal honey-producing beehives in Country-Residential zoned areas.

Atriding.Kinosoo

In the Parks Department, we are currently working with the City of Cold Lake on a joint intermunicipal trails plan, which will allow for an interconnecting trail system in the municipalities. The expansion of the Cold Lake M.D. Park continues with the opening of over 70 new sites. The construction of warming shacks for our outdoor rinks also continues. In 2022, Council has approved an extension of the Moose Lake Trail. The project was tendered in the first quarter and came in under the $2 million budget. New boat launches are scheduled to be installed this year, and the department is expanding camping at Muriel Lake to include seasonal sites and providing access for horseback

WHERE WE’RE GOING

New this year is Asset Management. This year will be spent educating staff and setting up the foundation of the program across all departments.

Kinosoo Ridge's new Business and Destination Management Plan has been presented to Council and will set the path forward to expand and evolve this unique recreation area.

Economic Development will focus on local investment readiness, amplifying the brand of the region, and business attraction to diversify the current economic portfolio.

In Parks & Recreation, we have seen the recent expansion of the Cold Lake M.D. Park, opening of the covered outdoor ice rinks in Ardmore and Cherry Grove, and the continued maintenance and construction of trails in the municipality.

On the Planning & Development side, staff have been concentrating on the updates to the numerous Area Structure Plans within our boundaries.

In Planning & Development, a review of the Municipal Lands Bylaw and the Land Use Bylaw will be undertaken, while the department continues to work its way through the Area Structure Plan reviews. These ASP reviews will help plan for the next 20 to 25 years of building and development in our hamlets, at our airport, and rural multi-lot subdivisions.

WHERE WE’VE BEEN

Ridge, the process to replace the Green Chairlift is well underway. The Aerial Adventure Park is now open. The chalet will undergo some renovations.

With Kinosoo Ridge, the finishing touches were put on the Aerial Adventure Park, with plans made to replace the Green Chairlift, turning the resort into a year-round attraction.

WHERE WE ARE NOW

Fines & Penalties 2,000 2,000 2,000 2,000

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

CAPITAL BUDGET 80,000 80,000 from - - -80,000 80,000 - 80,000 - 80,000

Transfer from Reserves 350,000 - - -

Proceeds

$ 80,000 CAPITAL EXPENDITURES Machinery & Equipment -

OPERATING BUDGET

Vehicles 39,110

Materials, Goods & Supplies 46,500 168,500 173,600 178,800

Telephone & Technology 4,800 3,500 3,600 3,700

CAPITAL REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 Transfers from Capital Reserves 39,110 80,000

TOTAL CAPITAL REVENUES $ 39,110 $ 80,000 $

PLANNING & DEVELOPMENT

TOTAL OPERATING EXPENSES $ 2,688,107 $ 2,365,500 $ 2,436,600 $ 2,509,700

Grants 90,000 - - -

Sales & User Charges 108,000 108,000 108,000 108,000

EXPENSES

OPERATING EXCESS (SHORTFALL) ($ 2,138,107) ($ 2,255,500) ($ 2,326,600) ($ 2,399,700)

Sale

Training & Development 87,950 90,600 93,300 96,100 Insurance 2,000 2,100 2,200 2,300

TOTAL OPERATING REVENUES $ 550,000 $ 110,000 $ 110,000 $ 110,000

Transfer to Reserves 70,858 73,000 75,200 77,500

Salaries, Wages & Benefits 1,835,998 1,489,100 1,533,800 1,579,800

REVENUES

Contracted Services 640,000 538,700 554,900 571,500

Telephone & Technology 17,000 17,500 18,000 18,500

Contracted Services 576,050 545,900 562,300 579,200

Return on Investments - - -

EXPENSES

Grants to Other Organizations 1,782,268 1,815,180 1,848,980 1,883,880

Sales and User Charges 540,100 540,100 540,100 540,100

TOTAL OPERATING REVENUES $ 1,009,924 $ 1,009,924 $ 1,009,924 $ 1,009,924

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

Transfer to Reserves 236,432 243,500 250,800 258,300

Utilities 90,000 92,700 95,500 98,400

OPERATING BUDGET

PARKS, RECREATION & CULTURE

Grants 439,824 439,824 439,824 439,824

Salaries, Wages & Benefits 1,341,038 916,800 944,500 972,700

Training & Development 24,400 52,200 53,600 55,000

CAPITAL BUDGET CAPITAL REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025 Transfers from Capital Reserves 8,591,496 130,000 130,000 130,000 Proceeds from Sale - - -Capital Grants - - -TOTAL CAPITAL REVENUES $ 8,591,496 $ 130,000 $ 130,000 $ 130,000 CAPITAL EXPENDITURES Engineered Structures 8,248,996 1,500,000 1,500,000 1,500,000 Buildings - - -Machinery & Equipment 492,500 180,000 180,000 180,000 Vehicles 100,000 50,000 50,000 50,000 TOTAL CAPITAL EXPENDITURES $ 8,841,496 $ 1,730,000 $ 1,730,000 $ 1,730,000 NET CAPITAL REVENUE (EXPENDITURE) ($ 250,000) ($ 1,600,000) ($ 1,600,000) ($ 1,600,000)4747Business Proposal | info.business@email.com | www. business .com Tele : +(789)-7365-265-253 | Fax : +(364)-9783-634-265 | Annual Report 4747md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

Transfers from Reserves 30,000 30,000 30,000 30,000

OPERATING EXCESS (SHORTFALL) ($ 3,424,264) ($ 3,089,256) ($ 3,191,556) ($ 3,296,756)

Materials, Goods & Supplies 352,000 399,900 411,800 424,200

Insurance 15,000 15,500 16,000 16,500

REVENUES

TOTAL OPERATING EXPENSES $ 4,434,188 $ 4,099,180 $ 4,201,480 $ 4,306,680

OPERATING BUDGET

Salaries, Wages & Benefits 1,909,223 1,935,700 1,993,700 2,053,500

Insurance 60,000 61,800 63,600 65,500

TOTAL $ 6,558,177 $ 160,000 $ 160,000 $ 160,000 (EXPENDITURE) ($ 820,000) ($ 100,000) ($ 100,000) ($ 100,000)

Contracted Services 771,000 648,900 668,300 688,400

Transfers from Capital Reserves from - - -Capital Grants - - -TOTAL REVENUES $ 5,738,177 $ 60,000 $ 60,000 $ 60,000

CAPITAL

Training & Development 20,000 51,500 53,000 54,600

NET CAPITAL REVENUE

REVENUES

CAPITAL BUDGET

5,738,177 60,000 60,000 60,000 Proceeds

CAPITAL EXPENDITURES

TOTAL OPERATING REVENUES $ 1,081,500 $ 1,081,500 $ 1,081,500 $ 1,081,500

Utilities 250,000 257,500 265,200 273,200

Telephone & Technology 15,000 15,500 16,000 16,500

TOTAL OPERATING EXPENSES $ 4,367,366 $ 4,499,100 $ 4,633,900 $ 4,773,100

Grants - - - -

REVENUES BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

Sales & User Charges 1,081,500 1,081,500 1,081,500 1,081,500

CAPITAL EXPENDITURES

EXPENSES

Materials, Goods & Supplies 781,500 950,700 979,300 1,008,800

Transfer to Reserves 560,643 577,500 594,800 612,600

OPERATING EXCESS (SHORTFALL) ($ 3,285,866) ($ 3,417,600) ($ 3,552,400) ($ 3,691,600)

CAPITAL

Sale

KINOSOO RIDGE RESORT

BUDGET2022 FORECASTBUDGET2023 FORECASTBUDGET2024 FORECASTBUDGET2025

Engineered Structures 5,290,521 100,000 100,000 100,000 Buildings 367,156 - -Machinery & Equipment 900,500 60,000 60,000 60,000 Vehicles - - - -

// 49md.bonnyville.ab.ca | 2022 | BUDGET & BUSINESS PLAN

APPENDIX

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for 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.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Basis for Opinion

INDEPENDENT AUDITORS' REPORT

(continues)

To the Reeve and Council of the Municipal District of Bonnyville No. 87

We have audited the accompanying consolidated financial statements of the Municipal District of Bonnyville No. 87 (the Municipality), which comprise the consolidated statement of financial position as at December 31, 2021 and the consolidated statements of operations, change in net financial assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Opinion

In preparing the consolidated financial statements, management is responsible for assessing the Municipality's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Municipality or to cease operations, or has no realistic alternative but to do so.

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Municipality as at December 31, 2021, the results of its operations, changes in net financial assets, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Municipality in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Those charged with governance are responsible for overseeing the Municipality's financial reporting process.



April 13, 2022

Independent Auditors' Report to the Reeve and Council of the Municipal District of Bonnyville No. 87

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Municipality’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date or our auditors’ report. However, future events or conditions may cause the Municipality to cease to continue as a going concern.

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

Auditors'(continued)Responsibilities for the Audit of the Consolidated Financial Statements

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:



Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit 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 Municipality’s internal control.



Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.



We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Chartered Professional Accountants

Edmonton, Alberta

Evaluate the appropriateness of accounting policies and the reasonableness of accounting estimates and related disclosures made by management.

The elected Reeve and Council of the Municipal District of Bonnyville No. 87 are composed entirely of individuals who are neither management nor employees of the Municipality. The Reeve and Council have the responsibility of meeting with management and the external auditors to discuss the internal controls over the financial reporting process, auditing matters, and financial reporting issues. The Reeve and Council are also responsible for the appointment of the Municipality's external auditors.

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

In discharging its responsibility for the integrity and fairness of the consolidated financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are properly maintained to provide reliable information for the preparation of the consolidated financial statements.

Metrix Group LLP, an independent firm of Chartered Professional Accountants, is appointed by Council to audit the consolidated financial statements and to report directly to them. The external auditors have full and free access to and meet periodically and separately with both the Reeve and Council and management to discuss their audit findings.

Management is responsible for the preparation and presentation of the accompanying consolidated financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian public sector accounting standards. The responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required.

iyesa, CPA, CGA ger of Corporate Services

April 13, 2022 Bonnyville, Alberta

Accounts payable and accrued liabilities (Note 7)

ACCUMULATED SURPLUS (SCHEDULE 2, NOTE 14)

Cash and temporary investments (Note 2)

Employee benefit obligations (Note 10)

FINANCIAL ASSETS

LIABILITIES

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Landfill closure and post-closure liability (Note 12)

NET FINANCIAL ASSETS

Taxes and grants in place of taxes receivable (Note 3)

Land held for resale Investments (Note 6)

Deferred revenue (Note 9)

Debt recoverable local improvements (Note 5)

ON BEHALF OF COUNCIL:

8,242,209 11,913,698 3,312,712 1,354,563 7,774,275 1,945,201 887,117 921,454 11,210,238 12,008,480 2,819,181 2,365,683 34,245,732 30,509,079 89,840,149 80,639,821 281,463,913 282,476,972 37,013,466 34,502,365 687,917 526,221 319,165,296 317,505,558 $40910051445 $39811451379 notes part of these consolidated financial statements.

The accompanying

4.

Long-term debt (Note 11)

are an integral

As at December 31, 2021

Consolidated Statement of Financial Position

Tangible capital assets (Schedule 1) Inventory for consumption (Note 13) Prepaid expenses

NON-FINANCIAL ASSETS

Guarantee (Note 15)

Trade and other receivables (Note 4)

$ 68,461,383 2,821,789 8,814,107 360,516 345,090 43,282,996 $ 63,658,325 2,109,021 2,836,254 420,189 345,090 41,780,021 124,085,881 111,148,900

Deposit liabilities (Note 8)

Commitment (Note 18)

Ambulance 2,060,284 1,935,298 1,936,458 Disaster and emergency measures 976,192 469,779 515,390 Bylaws enforcement 3,489,666 2,777,434 2,498,955 Roads, streets, walks and lighting 24,327,719 31,198,719 35,100,945 Water supply and distribution 2,781,744 1,024,968 1,057,300

Consolidated Statement of Operations and Accumulated Surplus For the Year Ended December 31, 2021

User fees and sales of goods (Schedule 5) 4,201,191 4,545,283 4,512,738 Government transfers for operating (Schedule 4) 3,042,226 2,509,263 1,187,869

2021 2021 2020 (Budget) (Actual) (Actual) (Note 23)

$ 57,057,636 $ 82,291,415 $ 60,881,554

Council 682,201 478,824 527,906 Administration 5,002,228 5,059,398 5,503,871 General government services 10,192,499 28,080,411 7,974,495 Firefighting services 2,002,049 2,010,404 1,709,782

OTHER INCOME

Government transfers for capital (Schedule 4) 10,712,399 2,611,259 9,976,631 Gain (loss) on disposal of tangible capital assets 148,040 477,411 173,362 Contributed assets (Schedule 1) 300,000 166,201 1,419,922 11,160,439 3,254,871 11,569,915

ACCUMULATED SURPLUS, END OF YEAR (SCHEDULE 2, NOTE 14) $ 411,673,497 $ 409,005,445 $ 398,145,379 accompanying notes are an integral part of these consolidated financial statements.

ANNUAL SURPLUS BEFORE OTHER INCOME 2,367,679 7,605,195 1,008,398

REVENUE

Investment income 1,040,000 1,861,474 1,251,472 Penalties on taxes 307,000 364,374 410,701 Licenses and permits 258,800 188,163 293,956 Development levies - 11,744 5,173 Sales to other governments 331,400 306,623 368,874

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

ACCUMULATED SURPLUS, BEGINNING OF YEAR 398,145,379 398,145,379 385,567,066

The

EXPENSES

ANNUAL SURPLUS 13,528,118 10,860,066 12,578,313

Net municipal taxes (Schedule 3)

Fines 106,200 37,535 89,285 Other 2,190,100 2,732,972 2,102,379 68,534,553 94,848,846 71,104,001

5.

Wastewater treatment and disposal 522,627 465,197 535,724 Waste management 2,536,528 2,687,209 2,620,364

Family and Community Support Services 490,280 488,330 488,870 Community services 200,000 37,803 188,950 Land use planning, zoning and development 1,988,165 1,627,358 1,579,642 Agricultural services 2,216,791 2,088,647 2,247,869 Economic development and other planning 543,285 445,176 509,209 Recreation boards 901,795 1,187,468 1,296,155 Parks and recreation 4,879,836 4,806,377 3,424,387 Library 372,985 374,851 379,331 66,166,874 87,243,651 70,095,603

2021 2021 2020 (Budget) (Actual) (Actual) (Note 23)

Acquisition of tangible capital assets (71,100,514) (20,597,533) (30,663,776) Contributed tangible capital assets (300,000) (166,201) (1,419,922) Proceeds on disposal of tangible capital assets 2,648,512 232,883

NET FINANCIAL ASSETS, BEGINNING OF YEAR 80,639,821 80,639,821 80,235,615

6.

ANNUAL SURPLUS $ 13,528,118 $ 10,860,066 $ 12,578,313

Amortization of tangible capital assets 19,605,692 20,449,897 Loss (gain) on disposal of tangible capital assets (148,040) (477,411) (173,362) (71,548,554) 1,013,059 (11,574,280)

INCREASE IN NET FINANCIAL ASSETS (58,020,436) 9,200,328 404,206

NET FINANCIAL ASSETS, END OF YEAR $ 22,619,385 $ 89,840,149 $ 80,639,821 accompanying notes are an integral part of these consolidated financial statements.

Net change in prepaid expenses (161,696) (44,145) Net change in inventory for consumption (2,511,101) (555,682) (2,672,797) (599,827)

The

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Consolidated Statement of Change in Net Financial Assets For the Year Ended December 31, 2021

part of these consolidated financial statements. 7.

2021

The accompanying

Change in non-cash working capital balances:

MUNICIPAL DISTRICT OF BONNYVILLE NO.

For the Year Ended December 31, 2021 2020

INVESTMENTS,

Annual surplus $ 10,860,066 $ 12,578,313

Non-cash items included in annual surplus: Amortization of tangible capital assets 19,605,692 20,449,897 Acquisition of contributed capital assets (166,201) (1,419,922)

87

Accounts payable and accrued liabilities (3,671,489) 5,842,152

CAPITAL ACTIVITIES

Acquisition of tangible capital assets (20,597,533) (30,663,776) Proceeds on disposal of tangible capital assets 2,648,512 232,883 (17,949,021) (30,430,893)

Cash from operations:

INVESTMENTS,

OPERATING ACTIVITIES

FINANCING ACTIVITIES

Employee benefit obligations (34,337) 17,209

Inventory for consumption (2,511,101) (555,682)

Prepaid expenses (161,696) (44,145)

INVESTING ACTIVITIES

CHANGE IN CASH AND TEMPORARY INVESTMENTS, DURING THE YEAR 4,803,058 11,583,754

Provision for landfill closure and post-closure 453,498 (12,956)

Proceeds on sale of investments 30,757,117 8,186,117

CASH AND TEMPORARY BEGINNING OF YEAR 63,658,325 52,074,571

Deposit liabilities 1,958,149 (17,705)

Purchase of investments (32,260,093) (5,824,664) (1,502,976) 2,361,453

Gain on disposal of tangible capital assets (477,411) (173,362) 29,822,146 31,434,926

Accounts receivable (6,690,621) 4,350,291

Local improvements - recoverable 59,673 56,097

Repayment of long-term debt (798,241) (772,637)

Consolidated Statement of Cash Flows

CASH AND TEMPORARY END OF YEAR (NOTE 2) $ 68,461,383 $ 63,658,325 notes are an integral

Deferred revenue 5,829,074 (644,356) (4,768,850) 8,990,905 25,053,296 40,425,831

Schedule 1

Consolidated Schedule of Tangible Capital Assets

Engineered Machinery and Construction in Land Buildings Structures Equipment Vehicles Progress* 2021 2020

COST: Balance, Beginning of Year $ 14,191,869 $ 50,646,563 $ 650,478,743 $ 33,532,981 $ 17,378,708 $ 30,139,732 $ 796,368,596 $ 765,381,210

Balance, Beginning of Year 8,665,597 477,661,644 17,154,679 10,409,704 513,891,624 494,478,518 Amortization expense 1,069,875 15,425,135 1,944,299 1,166,383 19,605,692 20,449,897 Disposals (3,746,863) (1,169,169) (4,916,032) (1,036,791)

Balance, End of Year 9,735,472 493,086,779 15,352,115 10,406,918 528,581,284 513,891,624

Additions 1,860 1,116,996 1,083,526 1,773,967 172,600 16,448,584 20,597,533 30,663,776 Contributed assets 21,535 94,759 - 49,907 - - 166,201 1,419,922 Disposals - - - (5,808,792) (1,164,329) (114,012) (7,087,133) (1,096,312) Transfers 4,390,275 4,759,312 125,011 (9,274,598) -

an integral part of these consolidated financial statements. 8.

The accompanying

Balance, End of Year 14,215,264 56,248,593 656,321,581 29,673,074 16,386,979 37,199,706 810,045,197 796,368,596

NET BOOK VALUE, END OF YEAR $ 14,215,264 $ 46,513,121 $ 163,234,802 $ 14,320,959 $ 5,980,061 $ 37,199,706 $ 281,463,913 $ 282,476,972

For the Year Ended December 31, 2021

ACCUMULATED AMORTIZATION:

*Construction in progress is comprised of $ $ 1,133,008 $ 35,927,125 $ 139,573 $ $ $ 37,199,706 $ 30,139,732 notes are

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

NET BOOK BEGINNINGVALUE,OFYEAR $ 14,191,869 $ 41,980,966 $ 172,817,099 $ 16,378,302 $ 6,969,004 $ 30,139,732 $ 282,476,972 $

Schedule 2

Restricted funds designated for cash flow 2,396,723 (2,396,723) -

Disposal of tangible capital assets (net of amortization) 2,171,101 (2,171,101) -

Current year funds used for tangible capital assets (20,597,533) - - - 20,597,533 - -

Levied portion of debt recoverablelocal improvements 59,673 - - - (59,673) - -

Change in accumulated surplus 25,210,084 (2,396,723) 3,638,967 (15,317,771) (274,491) 10,860,066 12,578,313

Long term debt repaid (798,241) - - - 798,241 - -

Current year funds designated for future equipment - net (3,638,967) 3,638,967 -

BALANCE, BEGINNING OF YEAR $ 16,919,805 $ 22,758,901 $ 26,376,860 $ 61,201,132 $270,888,681 $398,145,379 $385,567,066

statements. 9.

Current year funds designated for future use 15,317,771 (15,317,771) -

Contributed tangible capital assets (166,201) - - - 166,201 - -

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Consolidated Schedule of Changes in Accumulated Surplus

For the Year Ended December 31, 2021

BALANCE, END OF YEAR (NOTE 14) $ 42,129,889 $ 20,362,178 $ 30,015,827 $ 45,883,361 $270,614,190 $409,005,445 $398,145,379 notes are an integral part of these consolidated financial

Annual amortization expense 19,605,692 (19,605,692) -

Annual surplus 10,860,066 - - - - 10,860,066 12,578,313

The accompanying

Unrestricted Restricted Restricted Restricted Equity in Tangible Surplus Cash Flow Equipment Pool Other Capital Assets 2021 2020

10.

Alberta School Foundation Fund 12,172,246 16,197,256 12,217,446 Lakeland Roman Catholic Separate School District #150 512,258 534,355 548,249 Designated Industrial Property 282,946 437,755 277,612 Lakeland Lodge and Housing Foundation 507,112 315,603 507,114 13,474,562 17,484,969 13,550,421

Real property taxes

TAXATION

2021 2021 2020 (Budget) (Actual) (Actual) (Note 23)

Consolidated Schedule of Property and Other Taxes For the Year Ended December 31, 2021

Schedule 3

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

$ 40,427,318 $ 57,176,971 $ 41,408,830 Linear property taxes 30,046,448 42,506,178 32,961,135 Government grants in lieu of property taxes 31,645 66,447 31,646 Local improvement taxes (Note 5) 26,787 26,788 30,364 70,532,198 99,776,384 74,431,975

REQUISITIONS

The

NET MUNICIPAL TAXES $ 57,057,636 $ 82,291,415 $ 60,881,554 accompanying notes are an integral part of these consolidated financial statements.

TOTAL GOVERNMENT TRANSFERS $ 13,754,625 $ 5,120,522 $ 11,164,500 accompanying notes are an integral part of these consolidated financial statements.

11.

Schedule 4

2021 2021 2020 (Budget) (Actual) (Actual) (Note 23)

TRANSFERS FOR OPERATING

TRANSFERS FOR CAPITAL Provincial government 9,487,399 1,320,200 9,913,823 Federal government 1,225,000 1,291,059 62,808 10,712,399 2,611,259 9,976,631

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Provincial government $ 1,968,997 $ 2,376,530 $ 970,754 Local governments 772,229 132,733 217,115 Federal government 301,0003,042,226 2,509,263 1,187,869

Consolidated Schedule of Government Transfers For the Year Ended December 31, 2021

The

Contracted and general services 1,460,800 582,713 1,008,651 1,250,907 1,074,759 1,321,822 6,699,652

Government transfers for capital 1,296,467 1,314,792 2,611,259 Gain (loss) on disposal of tangible capital assets 10,084 (37,096) 488,808 15,615 477,411 Contributed assets - - - - 19,916 - 146,285 166,201

REVENUE

Taxation $ 82,291,415 $ $ $ $ $ $ $ 82,291,415

ANNUAL SURPLUS $ 52,582,433 $ (3,922,648) $ (3,530,486) $ (82,652) $(27,026,882) $ (3,638,964) $ (3,520,735) $ 10,860,066

Transfers to local boards and organizations 195,000 37,803 700,000 932,803 Materials, goods, supplies and utilities 315,628 795,871 363,350 6,708,695 715,128 1,255,524 10,154,196 Other (recovery) 280,404 45,002 8,416 333,822 Interest on long term debt 341,486 25,985 367,471 33,394,537 6,299,825 3,902,459 526,133 14,743,275 3,425,178 5,346,552 67,637,959

Salaries, wages, and benefits 4,879,064 4,355,458 2,335,458 1,050 6,442,187 1,051,375 2,060,790 21,125,382

Schedule 5

EXPENSES

Consolidated Schedule of Segmented Information

All other 697,184 283,930 125,575 2,278,817 58,604 9,138 3,453,248

ANNUAL SURPLUS BEFORE AMORTIZATION 52,806,529 (3,039,642) (3,234,668) (82,652) (12,376,629) (2,902,383) (3,959,668) 27,210,887

Transfers to other governments 26,458,641 520,781 487,280 557,931 28,024,633

Amortization of tangible capital assets 224,096 893,090 258,722 16,455,444 752,196 1,022,144 19,605,692

Licenses and permits 19,411 3,194 118,157 47,401 188,163 86,201,066 3,260,183 667,791 443,481 2,366,646 522,795 1,386,884 94,848,846

The accompanying notes are an integral part of these consolidated financial statements. 12.

For the Year Ended December 31, 2021

Government transfers 1,345,105 199,980 304,655 443,481 38,670 177,372 2,509,263

ANNUAL SURPLUS BEFORE OTHER INCOME 52,582,433 (3,932,732) (3,493,390) (82,652) (28,832,073) (3,654,579) (4,981,812) 7,605,195

Municipal Planning, Council Agricultural Services FCSS and Roads Water, Parks, Administration and Protective and Economic Community Streets, Walks Sewer and Recreation General Government Services Development Services and Lighting Waste Management and Library Total

User fees and sales of goods 13,500 2,748,989 119,404 1,758 464,191 1,197,441 4,545,283

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Investment income 1,834,451 24,090 2,933 1,861,474

Municipal Planning, Council Agricultural Services FCSS and Roads Water, Parks, Administration and Protective and Economic Community Streets, Walks Sewer and Recreation General Government Services Development Services and Lighting Waste Management and Library Total

User fees and sales of goods 9,025 2,548,601 171,424 471,083 1,312,605 4,512,738

EXPENSES

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

The accompanying

Interest on long term debt 363,707 29,609 393,316 13,721,093 5,826,187 4,082,644 677,820 17,723,512 3,462,139 4,152,311 49,645,706

part

Schedule 5

Transfers to local boards and organizations 69,100 188,950 581,800 839,850 Materials, goods, supplies and utilities 266,486 839,152 475,573 9,076,652 881,130 877,762 12,416,755 Other (recovery) 125,169 43,152 286 17,020 185,627

For the Year Ended December 31, 2020

Taxation $ 60,881,554 $ $ $ $ $ $ $ 60,881,554

All other 743,099 320,934 69,565 1,778,772 36,720 27,322 2,976,412 Investment income 1,222,557 24,568 4,347 1,251,472 Government transfers 136,848 230,245 181,407 473,714 44,125 121,530 1,187,869

Transfers to other governments 7,840,327 1,112 487,280 597,796 8,926,515

ANNUAL SURPLUS BEFORE AMORTIZATION 49,428,380 (2,699,997) (3,566,579) (204,106) (15,858,560) (2,954,336) (2,686,507) 21,458,295

Amortization of tangible capital assets 285,180 834,398 254,076 17,377,430 751,250 947,563 20,449,897

Government transfers for capital 853,121 9,079,360 44,150 9,976,631 Contributed assets 1,386,311 33,611 1,419,922 Gain (loss) on disposal of tangible capital assets 143,076 33,758 3,850 (7,322) 173,362

Consolidated Schedule of Segmented Information

ANNUAL SURPLUS $ 49,996,321 $ (3,391,319) $ (3,786,897) $ (204,106) $(22,770,319) $ (3,701,736) $ (3,563,631) $ 12,578,313 notes are an integral of these consolidated financial

statements. 13.

Contracted and general services 1,096,008 445,531 1,372,607 90 1,523,484 703,924 971,976 6,113,620

Licenses and permits 156,390 1,842 93,669 42,055 293,956 63,149,473 3,126,190 516,065 473,714 1,864,952 507,803 1,465,804 71,104,001

REVENUE

ANNUAL SURPLUS BEFORE OTHER INCOME 49,143,200 (3,534,395) (3,820,655) (204,106) (33,235,990) (3,705,586) (3,634,070) 1,008,398

Salaries, wages, and benefits 4,393,103 4,497,240 2,165,364 1,500 6,759,383 1,249,680 1,703,753 20,770,023

Land held for resale is recorded at the lower of cost or net realizable value. Cost includes costs for land acquisition and improvements required to prepare the land for servicing such as clearing, stripping and leveling charges. Related development costs incurred to provide infrastructure such as water and wastewater services, roads, sidewalks and street lighting are recorded as physical assets under their respective function.

(d) Investments

(a) Reporting Entity

The statements exclude trust assets that are administered for the benefit of external parties. Interdepartmental and organizational transactions and balances are eliminated.

The consolidated financial statements reflect the assets, liabilities, revenues, expenses, and change in net financial assets and cash flows of the reporting entity. The entity is comprised of all the organizations that are owned or controlled by the Municipality and are, therefore, accountable to the Council for the administration of their financial affairs and resources. They include the Municipal District of Bonnyville No. 87 Library Board and the Municipality's proportionate share of the Bonnyville Regional Fire Authority 71%.

The schedule of taxes levied also includes requisitions for education and seniors foundations that are not part of the municipal reporting entity.

Pursuant to the Alberta Environmental Protection and Enhancement Act, the Municipality 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 requirement is being provided for over the estimated remaining life of the landfill site based on usage.

1. SIGNIFICANT ACCOUNTING POLICIES

Investment income is reported as revenue in the period earned. When required by the funding government or related act, investment income earned on deferred revenue is added to the investment, and forms part of the deferred revenue balance.

(c) Land Held for Resale

Investments are recorded at amortized cost. Investment premiums and discounts are amortized over the term of the respective investments. When there has been a loss in value that is other than a temporary decline, the respective investment is written down to recognize the loss. Gains on principal protected notes are recognized as income when sold.

The consolidated financial statements are prepared using the accrual basis of accounting. The accrual basis of accounting recognizes revenue as it is earned and measurable. Expenses are recognized as they are incurred and measurable based upon receipt of goods and 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.

(e) Landfill Closure and Post-Closure Liability

The consolidated financial statements of the Municipal District of Bonnyville No. 87 (the "Municipality") are the representations of management prepared in accordance with Canadian public sector accounting standards. Significant aspects of the accounting policies adopted by the Municipality are as follows:

(CONT'D)14.

Year Ended December 31, 2021

Notes to Consolidated Financial Statements

Interdepartmental and inter-organizational transactions and balances between these entities and organizations are eliminated.

(b) Basis of Accounting

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

(h) Use of Estimates

Property tax revenue is based on assessments determined in accordance with the Municipal Government Act. Tax mill rates are established annually. Taxation revenues are recorded at the time tax billings are issued. Assessments are subject to appeal.

(j) Requisition Over-Levies and Under-Levies

DISTRICT OF BONNYVILLE NO. 87

The preparation of consolidated financial statements in conformity with Canadian public sector accounting standards 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 consolidated financial statements, and the reported amounts of revenue and expenditure during the period. Where management uncertainty exists, the consolidated financial statements have been prepared within reasonable limits of materiality Actual results could differ from those estimates.

Requisition tax rates in the subsequent year are adjusted for any over-levies or under-levies of the prior year.

1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

Over-levies and under-levies arise from the difference between the actual property tax levy made to cover each requisition and the actual amount requisitioned.

(g) Tax Revenue

Year Ended December 31, 2021

If the actual levy exceeds the requisition, the over-levy is accrued as a liability and property tax revenue is reduced. In situations where the actual levy is less than the requisition amount, the under-levy is accrued as a receivable and as property tax revenue.

MUNICIPAL

Notes to Consolidated Financial Statements

(i) Government Transfers

Construction and borrowing costs associated with local improvement projects are recovered through annual special property assessments during the period of the related borrowing. These levies are collectible from property owners for work performed by the Municipality Under the accrual basis of accounting, revenues to be received from local improvement assessments are recognized in full in the period the local improvement project costs are incurred and the passing of the related imposition by-law.

The Municipality has used estimates to determine an allowance for doubtful accounts, accrued liabilities, employment benefit obligations, inventory valuation and the useful lives of tangible capital assets.

(CONT'D)15.

Government transfers are recognized in the consolidated financial statements as revenue in the period that the events giving rise to the transfer occurred, providing the transfers are authorized, any eligibility criteria have been met by the Municipality, and reasonable estimates of the amounts can be made.

Cash and temporary investments include items that are readily convertible to known amounts of cash, are subject to an insignificant risk of change in value, and have a maturity of three months or less at acquisition.

(f) Cash and Temporary Investments

Government transfers are the transfer of assets from all levels of governments that are not the result of an exchange transaction, are not expected to be repaid in the future, or are the result of a direct financial return.

Inventory held for consumption is recorded at the lower of cost and replacement cost with cost determined using the average cost method.

Tangible capital assets received as contributions are recorded at fair value at the date of receipt and also are recorded as revenue.

(k) Pension Expenses

i) Tangible Capital Assets

Tangible capital assets are recorded at cost which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets is amortized on a straight-line basis or 10% declining balance over the estimated useful life as follows:

v) Cultural and Historical Tangible Capital Assets

Works of art for display are not recorded as tangible capital assets but are disclosed.

1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

16.

Buildings 50 years EngineeredBridgesStructures

Year Ended December 31, 2021

Allowances for asset valuations are netted against the related asset. Increases in allowances are recorded as expenditures, while decreases in allowances are recorded as revenues.

MUNICIPAL DISTRICT OF BONNYVILLE NO.

Notes to Consolidated Financial Statements

Machinery and Equipment 5-20 years

One-half of the annual amortization is charged in the year of acquisition and in the year of disposal. Assets under construction are not amortized until the asset is available for productive use.

ii) Contributions of Tangible Capital Assets

Sidewalks 30 years Water system 40 years Wastewater system 40 years Roadways 10-40 years

Contributions for current and past service pension benefits are recorded as expenses in the year in which they become due.

iii) LeasesLeases

(m) 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 for the year.

are classified as capital or operating leases. Leases which transfer substantially all of the benefits and risks incidental to ownership 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.

87

iv) Inventory for Consumption

Heavy Machinery and Equipment 10% declining balance Vehicles 4-15 years

(l) Allowances for Operating and Physical Assets

40-95 years

PS 3280, Asset Retirement Obligations, establishes standards on how to account and report for legal obligations associated with the retirement of certain tangible capital assets including solid waste landfill sites. As a result, PS 3270, Solid Waste Landfill Closure and Post-Closure Liability has been withdrawn but will remain in effect until the adoption of PS 3280. This standard is applicable for fiscal years beginning on or after April 1, 2022.

17.

ii) Foreign Currency Translation

PS1201, Financial Statement Presentation, requires a new statement of re-measurement gains and losses separate from the statement of operations. Included in this new statement are the unrealized gains and losses arising from the re-measurement of financial instruments and items denominated in foreign currencies, as well as the government's proportionate share of other comprehensive income that arises when a government includes the results of government business enterprises and partnerships. This standard is applicable for fiscal years beginning on or after April 1, 2022.

1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

vi) RevenuePS3400, Revenue, establishes standards on how to account for and report revenue differentiating between revenue arising from transactions that include performance obligations and transactions that do not. This standard is applicable for fiscal years beginning on or after April 1, 2023.

PS 2601, Foreign Currency Translation, requires that monetary assets and liabilities denominated in foreign currency be adjusted to reflect the exchange rates in effect at the financial statement dates. Unrealized gains and losses are to be presented in the new statement of re-measurement gains and losses. This standard must be adopted in conjunction with PS 2601 and PS 3450 and is applicable for fiscal years beginning on or after April 1, 2022.

i) Financial Statement Presentation

Year Ended December 31, 2021

Notes to Consolidated Financial Statements

The following summarizes upcoming changes to the Canadian public sector accounting standards. The Municipality will continue to assess the impact and prepare for the adoption of these standards.

NO. 87

iii) Portfolio Investments

PS 3041, Portfolio Investments, has removed the distinction between temporary and portfolio investments and amended to conform to PS 3405. This standard must be adopted in conjunction with PS 1201, PS 2601, and PS 3450 and is applicable for fiscal years beginning on or after April 1, 2022.

iv) Financial Instruments

(n) Future Accounting Standard Pronoucements

PS 3450, Financial Instruments, established recognition, measurement and disclosure requirements for derivative and non-derivative financial instruments. The standard requires fair value measurement of derivative and equity instruments; all other financial instruments can be measured at cost/amortized cost or fair value at the election of the government. Unrealized gains and losses are presented in a new statement of remeasurement gains and losses. There is the requirement to disclose the nature and extent of risks arising from financial instruments and clarification is given for the derecognition of financial liabilities. This standard is applicable for fiscal years beginning on or after April 1, 2022.

v) Asset Retirement Obligations

MUNICIPAL DISTRICT OF BONNYVILLE

$ 2,821,789 $ 2,109,021

5. DEBT RECOVERABLE - LOCAL IMPROVEMENTS

The Municipality passed Bylaw No. 1253 authorizing Council to provide for a local improvement to install a water supply pipeline to the Hamlet of Ardmore and the construction of water storage and pumping facilities for each of the Hamlets of Ardmore and Fort Kent. The total cost of the local improvement was $1,126,681, and is repayable in 25 annual installments of $86,460 including interest at a fixed rate of 6.375% per annum maturing October 15, 2026.

Less: Allowance for doubtful accounts (199,198) (182,342)

2021 2020

Notes to Consolidated Financial Statements

Current taxes $ 1,852,861 $ 1,237,730 Arrears taxes 1,168,126 1,053,633 3,020,987 2,291,363

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Less: Allowance for doubtful accounts (256,601) (297,430) $ 8,814,107 $ 2,836,254

Temporary investments are short-term deposits with original maturities of three months or less bearing interest at rates ranging from 0.85% to 1.00% maturing in 2022.

18.

2. CASH AND TEMPORARY INVESTMENTS

2021 2020

Taxes and grants in place of taxes

Cash $ 60,185,110 $ 55,453,569 Temporary investments 8,276,273 8,204,756

Included in term deposits is a restricted amount of $156,482 (2020 - $274,410) received from money-in-place of municipal reserves and held exclusively for municipal and public recreation purposes.

4. TRADE AND OTHER RECEIVABLES

$ 68,461,383 $ 63,658,325

Receivable from other governments $ 7,135,413 $ 1,021,192 Trade and other 1,278,085 1,210,393 Receivable from other governments - GST 657,210 902,099 9,070,708 3,133,684

2021 2020

Year Ended December 31, 2021

3. TAXES AND GRANTS IN PLACE OF TAXES RECEIVABLE

6. INVESTMENTS

2021 2020

Statements

8. DEPOSIT LIABILITIES

1,354,56319.

Consolidated

Year Ended December 31, 2021

Fixed income securities 15,053,484 15,232,306 19,678,577 20,723,862

Notes to Financial

$ 43,282,996 $ 43,039,418 $ 41,780,021 $ 42,890,324

Term deposits 1,172,150 1,172,150 1,123,604 1,123,604 Landfillsecurityreclamationdeposits 47,339 47,339 47,388 47,388 Other 12,823 12,823 16,152 16,152

The market value of the fixed income securities and principal protected notes are based on quoted market values. The market value of the fixed income securities and principal protected notes fluctuate with changes in market interest rates and indices. When there has been a loss in value that is other than a temporary decline, the respective investment is written down to recognize the loss. Market values are based on market conditions at a certain point in time and as such, may not be reflective of the future fair values.

Carrying value Market value

Included in term deposits Bonnyville Regional Fire Authority term deposits totaling $1,172,150 (2020 - $1,123,604). Term deposits have interest rates ranging from 0.70% to 1.80% with maturity dates ranging from April 2022 to August 2022.

7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Trade $ 6,231,240 $ 6,866,461 Other governments 1,910,894 4,939,877 Accrued interest payable 100,075 107,360 $ 8,242,209 $ 11,913,698

2021 2020

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Principal protected notes $ 26,997,200 $ 26,574,800 $ 20,914,300 $ 20,979,318

Subdivision deposits $ 3,160,833 $ 1,238,152 Water meter deposits 80,702 74,847 Other deposits 71,177 41,564 $ 3,312,712 $

The fixed income securities have effective interest rates ranging from 2.22%% to 2.88% with maturity dates from July 25, 2029 to October 27, 2031.

Carrying value Market value

9. DEFERRED REVENUE

Notes to Consolidated Financial Statements

The vacation and overtime liability is comprised of the vacation and overtime that employees are deferring. Employees have either earned the benefits (and are vested) or are entitled to these benefits within the next budgetary year. The Municipality does not provide post-employment benefits to their employees.

The current portion of the long-term debt amounts to $824,751 (2020 - $798,241).

Canada Community Building Fund - 1,388,886 (83,043) 1,305,843 Other 379,510 792,043 (675,624) 495,929 Alberta Community Partnership 346,731 (52,031) 294,700 Willow Prairie Agricultural Society lease agreement 9 (1) 8 Alberta Municipal Operating Support Grant 1,198,947 (1,198,947)$ 1,945,201 $ 9,037,775 $(3,208,701) $ 7,774,275

10. EMPLOYEE BENEFIT OBLIGATIONS

2021 2020

Tax supported debentures

2021 2020

Debenture debt is repayable to the Province of Alberta and consists of two amounts, bearing interest at rates ranging from 3.051% - 6.375% per annum maturing in the year 2026 and 2033 respectively

Revenue 2020 Additions Recognized 2021

$ 11,210,238 $ 12,008,480

11. LONG-TERM DEBT

87

Year Ended December 31, 2021

MUNICIPAL DISTRICT OF BONNYVILLE NO.

Deferred revenue consists of the following amounts, which have been restricted by third parties for a specified purpose. These amounts are recognized as revenue in the period in which the related expenditures are incurred.

Vacation and overtime $ 887,117 $ 921,454

Principal Interest Total 2022 $ 824,751 $ 348,245 $ 1,172,996 2023 852,201 320,795 1,172,996 2024 880,629 292,367 1,172,996 2025 910,073 262,923 1,172,996 2026 940,573 232,423 1,172,996 Thereafter 6,802,011 803,744 7,605,755 $ 11,210,238 $ 2,260,497 $ 13,470,735

Municipal Sustainability Initiative $ $ 5,360,076 $ (1,137,220) $ 4,222,856 Municipal Stimulus Program 20,004 1,496,770 (61,835) 1,454,939

Interest on long-term debt amounted to $367,470 (2020 - $393,316). The Municipality's total cash payments for interest is $374,755 (2020 - $400,360).

20.

Principal and interest repayments:

Debenture debt is issued on the credit and security of the Municipality at large.

The accrued liability is based on the cumulative capacity used at year end compared to the total estimated landfill capacity The estimated remaining capacity of the landfill sites is 598,971 (2020607,958) cubic metres.

Year Ended December 31, 2021

Estimated capacity used Class 3 landfills 14% 12% Accrued liability portion Class 2 landfills $ 2,455,102 $ 2,199,937 Accrued liability portion Class 3 landfills 364,079 165,746

MUNICIPAL DISTRICT OF BONNYVILLE NO.

87

2021 2020

The Municipality transferred waste management activities to the Beaver River Regional Waste Management Commission effective April 1, 2009. As part of this transfer several existing landfills stopped receiving municipal solid waste and were closed. Some of the closed landfills were converted to waste transfer stations and some were restricted to receiving inert wastes only

The estimated total liability represents the net present value of the discounted cash flows of the total estimated cost for closure and post-closure activities for 25 years after closing using a discount rate of 3.39% (2020 - 2.29%) and assuming annual inflation of 4.72% (2020 - 2.00%).

Estimated capacity remaining Class 3 landfills 86% 88% Portion of total liability remaining to be recognized Class 3 landfills $ 2,578,077 $ 1,107,385

Accrued liability portion $ 2,819,181 $ 2,365,683

Alberta environmental law requires closure and post-closure care of landfill sites, which includes final covering and landscaping, pumping of ground water and leachates from the site, ongoing environmental monitoring, and site inspections and maintenance.

34,502,36521.

Notes to Consolidated Financial Statements

Estimated total liability $ 5,397,258 $ 3,473,068

12. LANDFILL CLOSURE AND POST-CLOSURE LIABILITY

Estimated post-closure liability Class 2 landfills 2,146,089 1,897,511

2021 2020

Gravel $ 35,794,243 $ 33,302,119 Parts, culverts and other 1,219,223 1,200,246 $ 37,013,466 $

Estimated closure liability Class 2 landfills $ 309,013 $ 302,426

13. INVENTORY FOR CONSUMPTION

Estimated closure liability Class 3 landfills 1,633,902 744,913 Estimated post-closure liability Class 3 landfills 1,308,254 528,218

Estimated capacity used Class 2 landfills 100% 100%

Section 276(2) of the Municipal Government Act requires that debt and debt limits as defined by Alberta Regulation 255/2000 for the Municipality be disclosed as follows:

16. DEBT LIMITS

Notes to Consolidated Financial Statements

2021 2020

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

Equity in tangible capital assets 270,614,190 270,888,681 $409,005,445 $398,145,379

2021 2020

Amount of debt servicing limit unused $ 22,539,216 $ 16,603,004

Restricted surplus Cash flow 20,362,178 22,758,901 General equipment replacement 30,015,827 26,376,860 Other 45,883,361 61,201,132 96,261,366 110,336,893

Debt servicing limit $ 23,712,212 $ 17,776,000 Debt servicing 1,172,996 1,172,996

Accumulated surplus consists of restricted and unrestricted amounts and equity in tangible capital assets as follows:

Unrestricted surplus $ 42,129,889 $ 16,919,805

15. GUARANTEE

The debt limit is calculated at 1.50 times revenue of the Municipality (as defined in the Alberta Regulation 255/2000) and the debt service limit is calculated as 0.25 times such revenue. Incurring debt beyond these limitations requires approval by the Minister of Municipal Affairs. These thresholds are a conservative guideline used by Alberta Municipal Affairs to identify municipalities that could be at a financial risk if further debt is acquired. The calculation taken alone does not represent the financial stability of the Municipality Rather, the consolidated financial statements must be interpreted as a whole.

14. ACCUMULATED SURPLUS

The Municipality has guaranteed up to $500,000 of an overdraft protection for the Bonnyville and District Leisure Facility Corporation. As at December 31, 2021, no amounts had been drawn on the bank overdraft (2020 - $NIL).

Total debt limit $142,273,269 $106,656,002 Total debt 11,210,238 12,008,480

Year Ended December 31, 2021

22.

Amount of total debt limit unused $131,063,031 $ 94,647,522

Disclosure of remuneration and benefits for elected municipal officials, the chief administrative officer and designated officers as required by Alberta Regulation 313/2000 is as follows:

(1) Salary includes gross honoraria, regular base pay, bonuses, overtime, lump sum payments, and any other direct cash remuneration.

(2) Employer's share of all employee benefits, travel and allowances or payments made on behalf of employees including travel and subsistence, pension, health care, dental coverage, vision coverage, group life disability plans, professional memberships and tuition.

Ward #3 48,071 16,396 64,467 67,079 Ward #4 10,417 1,356 11,773 Ward #5 44,541 6,874 51,415 72,100 Ward #6 52,441 14,673 67,114 73,799

Reeve 56,076 14,600 70,676 94,191 Ward #1 42,834 10,966 53,800 66,272 Ward #4 35,734 9,632 45,366 62,461

Year Ended December 31, 2021

23.

MUNICIPAL DISTRICT OF BONNYVILLE NO.

(3) The 2021 figure include the former and current Chief Administrative Officer's salaries and benefits.

Former Elected Officials

17. SALARIES AND BENEFITS DISCLOSURE

$ 370,897 $ 89,929 $ 460,826 $ 502,985

$ 15,035 $ 1,480 $ 16,515 $ Ward #1 12,157 3,088 15,245

ElectedReeveOfficials:

Benefits, Travel 2021 2020 Salary (1) and Allowances (2) Total Total

87

Notes to Consolidated Financial Statements

Ward #2 53,591 10,864 64,455 67,083

ChiefOfficerAdministrative(3) $ 310,601 $ 72,915 $ 383,516 $ 311,862

18. COMMITMENT

Year Ended December 31, 2021

Employees of the Municipality participate in the Local Authorities Pension Plan (LAPP), which is covered by the Public Sector Pension Plans Act LAPP is financed by employer and employee contributions and investment earnings of the LAPP Fund.

Total current and past service contributions made by the Municipality to the LAPP in 2021 were $1,495,967 (2020 - $1,531,799). Total current and past service contributions made by the employees of the Municipality to the LAPP in 2021 were $1,356,905 (2020 - $1,386,172).

The Municipality is required to make current service contributions to the Plan of 9.39% (20209.39%) of pensionable earnings up to the Canada Pension Plan year's maximum pensionable earnings and 13.84% (2020 - 13.84%) for the excess. Employees of the Municipality are required to make current service contributions of 8.39% (2020 - 8.39%) of pensionable earnings up to the year's maximum pensionable earnings and 12.84% (2020 - 12.84%) on pensionable earnings above this amount.

otherwise noted, the carrying value of these financial instruments approximates their fair value.

21. SEGMENTED INFORMATION

The Municipality's financial instruments consist of cash and temporary investments, accounts receivable, investments, accounts payable and accrued liabilities, deposit liabilities, debt recoverable local improvements and long-term debt. It is management's opinion that the Municipality is not exposed to significant interest, currency or credit risk arising from these financial Theinstruments.Municipality is subject to credit risk with respect to taxes and grants in place of taxes receivable and trade and other receivables. Credit risk arises from the possibility that taxpayers and entities to which the Municipality provides services may experience financial difficulty and be unable to fulfill their obligations. The large number and diversity of customers minimizes the Municipality's credit Unlessrisk.

NO. 87

Notes to Consolidated Financial Statements

20. FINANCIAL INSTRUMENTS

19. LOCAL AUTHORITIES PENSION PLAN

24.

The Municipality has committed $14,000 per year to the Bonnyville and District Chamber of Commerce for the Shaw House Centre under a cost-sharing arrangement with the Town of Bonnyville. This commitment remains in effect until the mortgage is paid out.

MUNICIPAL DISTRICT OF BONNYVILLE

The Municipality provides a range of services to its residents. For each reported segment, revenues and expenses represent both amounts that are directly attributable to the segment and amounts that are allocated on a reasonable basis. The accounting policies used in these segments are consistent with those followed in the preparation of the consolidated financial statements as disclosed in Note 1 For additional information see the Consolidated Schedules of Segmented Information.

At December 31, 2020, the LAPP disclosed an actuarial surplus of $4.96 billion (2019 - $7.91 billion).

LIABILITIES

NON-FINANCIAL ASSETS

User fees and sales of goods $ 2,748,989 $ 2,548,601 Government transfers for operating 25,846 217,115 Investment income 24,090 24,568 2,798,925 2,790,284

Prepaid expenses 59,957 58,454 Tangible capital assets 851,725 1,028,214 911,682 1,086,668

The following is a summary of the Municipality's share in this government partnership: 2021 2020

All other 51,003 58,752 3,617,743 3,534,606

OTHER INCOME Gain (loss) on disposal of tangible capital assets 4,846 14,006

Year Ended December 31, 2021

Notes to Consolidated Financial Statements

Cash and temporary investments $ 1,524,002 $ 1,225,886 Investments 1,172,150 1,123,604 Accounts receivable 226,532 283,054 2,922,684 2,632,544

FINANCIAL ASSETS

In accordance with the Canadian public sector accounting standards PS 3060 Government Partnerships, the financial position of the Municipality has been consolidated with the Municipality's proportionate 71% share of the Bonnyville Regional Fire Authority

NET FINANCIAL ASSETS 2,571,596 2,224,085

ACCUMULATED SURPLUS $ 3,483,278 $ 3,310,753

EXPENSES

Salaries, wages and benefits 2,645,507 2,549,827 Materials, goods, supplies and utilities 502,331 491,470 Contracted and general services 260,556 266,814 Amortization of tangible capital assets 158,346 167,743

25.

22. GOVERNMENT PARTNERSHIP

Accounts payable and accrued liabilities 139,660 206,884 Employee benefit obligation 33,928 24,075 Deferred revenue 177,500 177,500 351,088 408,459

ANNUAL DEFICIT BEFORE OTHER INCOME (818,818) (744,322)

MUNICIPAL DISTRICT OF BONNYVILLE NO. 87

ANNUAL DEFICIT $ (813,972) $ (730,316)

REVENUE

Notes to Consolidated Financial Statements

Acquistion of tangible capital assets (71,100,514) (20,597,533) (30,663,776)

2021 2021 2020 (Budget) (Actual) (Actual)

26. SUBSEQUENT EVENTS

Annual surplus 13,528,118 10,860,066 12,578,313

Amortization expense $ $ 19,605,692 $ 20,449,897

Levied portion of debt recoverablelocal improvements 59,673 56,097

Certain comparative figures have been reclassified to conform with the current year's financial statement presentation.

Principal debt repayments (798,241) (798,241) (772,637)

Net transfers (to) from reserves 58,818,677 14,075,527 (11,062,249)

MUNICIPAL DISTRICT OF BONNYVILLE NO.

Year Ended December 31, 2021

The budget figures presented in these consolidated financial statements are based on the budget approved by the Municipality's council on May 26, 2021 and include the Municipality's proportionate share of the Bonnyville Regional Fire Authority's budget. The Municipality compiles a budget on a modified accrual basis. The reconciliation below adjusts excess revenue over expenses to align with the budget process. It should not be used as a replacement for the statement of operations and accumulated surplus. Users should note that this information may not be appropriate for their purposes.

26.

24. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

Operating surplus (deficit) $ $ 25,210,084 $ (10,774,756)

On February 4, 2022 Council approved a purchase agreement with the Bonnyville Regional Fire Authority (the "Fire Authority") for a new building where the Fire Authority's 911 Centre, Fire and EMS divisions will relocate. The agreement and repayment terms will be for a maximum of 20 years. Any renovations required will be self funded by the Fire Authority

Loss (gain) on disposal of tangible capital assets (148,040) (477,411) (173,362)

87

Add back (deduct):

23. BUDGET

Proceeds on tangible capital assets 2,648,512 232,883 Contributed assets (300,000) (166,201) (1,419,922)

These consolidated financial statements were approved by Council and Management.

25. COMPARATIVE FIGURES

Address 4905 - 50 Avenue, Bag 1010 Bonnyville, Alberta T9N 2J7 Phone:Contact780.826.3171 Fax : 780.826.4524 Web www.md.bonnyville.ab.caMDBonnyvillemdbonnyville mdbville

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