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Edmundston – 2019 Annual Report Page 1 Edmundston 2019 Annual Report City of Edmundston, 7 Canada Road, Edmundston, New Brunswick, E3V 1T7 Edmundston – 2019 Annual Report Page 2 TABLE OF CONTENTS A WORD FROM THE MAYOR ......................................................................................................................... 4 PREFACE ........................................................................................................................................................ 5 COMMUNITY PROFILE ................................................................................................................................... 5 CITY COUNCIL ................................................................................................................................................ 6 Responsibilities and committees .............................................................................................................. 6 Council remuneration ............................................................................................................................... 9 City Council public meetings ..................................................................................................................... 9 Committees and closed door council meetings ...................................................................................... 10 PROPERTY TAX RATE ................................................................................................................................... 13 SUBSIDIES FOR SOCIAL OR ENVIRONMENTAL PURPOSES .......................................................................... 14 ECONOMIC DEVELOPMENT ACTIVITIES AND SUBSIDIES ............................................................................ 17 Entrepreneurship, it’s in my nature! – Business start-up Program ........................................................ 17 Renovating, it’s in my nature! – Commercial facade renovation Program ............................................ 18 Living here, it’s in my nature! – Construction of a first dwelling on a serviced residential lot Program 18 Investing, it’s in my nature! - Investment in multi-unit housing or commercial buildings Program ...... 18 Other funding offered through municipal programs .................................................................................. 19 Events support ........................................................................................................................................ 19 Special projects ....................................................................................................................................... 19 Community and related partners ........................................................................................................... 20 Other development activities held in 2019 ................................................................................................ 20 MUNICIPAL DEVELOPMENT PLAN REVIEW ................................................................................................. 23 SERVICES ..................................................................................................................................................... 24 INVESTMENT PLANS .................................................................................................................................... 24 Edmundston – 2019 Annual Report Page 3 LOCAL GOVERNMENT CORPORATIONS ...................................................................................................... 28 Centre des arts La Petite Église d’Edmundston inc. ................................................................................ 28 Gestion Edmundston Golf Management Inc. ......................................................................................... 28 Moitié-moitié Centre Jean-Daigle inc. .................................................................................................... 29 APPENDIX A 2019 Audited Financial Statements – Municipality of Edmundston ...................................................... 31 APPENDIX B 2019 Audited Financial Statements – Centre des arts La Petite Église inc. ............................................ 72 APPENDIX C 2019 Audited Financial Statements – Gestion Edmundston Golf Management inc. ............................. 87 APPENDIX D 2019 Audited Financial Statements – Moitié-moitié Centre Jean-Daigle inc. ...................................... 105 Edmundston – 2019 Annual Report Page 4 A WORD FROM THE MAYOR Edmundston is inhabited by positive energy and a will to move forward visible and felt at all levels. This is largely due to the citizens' sense of belonging to their community. The publication of an annual report gives us an opportunity to review what has been accomplished and what is being done. I am pleased that the pursuit of our sound management principles allows us to deliver excellent results and a constant reduction of the debt ratio. Since 2012, when I became Mayor for a first term, I asked my council colleagues the agreement to start from the bottom, to do what was absolutely necessary to make the changes needed to foster Edmundston’s transformation. In two terms, with the members of council, and a strongly committed municipal staff, we worked to improve the quality of our services, whether from spring asphalting to winter snow operations, from street marking to courses and workshops offered by our arts and recreation sectors, or the support we provide to organizations. Although we have put a lot of time and energy into the quality of our services, council members have also chosen to take a critical look at the situation of the City of Edmundston. With the adoption of a new municipal development plan, we have established priorities in the investments we make in the city and we succeeded in balancing operating budgets. Citizens have the right to have ambitions. And they have many! We see it daily in their involvement through a multitude of committees and organizations active in Edmundston. Our future resides in our passions and it is created in the collective spirit of every single one of us, in our city, right here. In closing, I would like to thank the members of the municipal council for their involvement and collaboration. They are leading the issues which drive them and actively contribute to strengthening the bonds with the citizens. I would also like to acknowledge the support and dedication of municipal employees, who are true professionals. The Mayor, Cyrille Simard Edmundston – 2019 Annual Report Page 5 PREFACE This report is prepared in accordance with section 105 of the Local Governance Act and Regulation 2018-54. It contains general information about the City of Edmundston, including its population, budget, tax rate, and detailed information about City Council and the grant of subsidies. The audited financial statements for 2019 are included in Appendix A. COMMUNITY PROFILE The City of Edmundston is currently the sixth largest in New Brunswick. With 16,580 inhabitants (Statistics Canada 2016), it constitutes 50% of the overall population of Madawaska County. Edmundston is the hub of economic activity in Madawaska County and northwestern New Brunswick. Its proximity to the province of Québec’s Bas-Saint-Laurent and the State of Maine makes it a market of some 100,000 inhabitants within a radius of 100 kilometres. The City of Edmundston’s municipal services include administration, protection, public works, water and wastewater, energy, recreational and cultural services. The Municipality employs 200 people full-time and part-time. Edmundston City Hall is the go to place for information regarding the municipality, including Council, staff contact information, agendas and minutes of Council meetings. Please visit our website: www.edmundston.ca Edmundston – 2019 Annual Report Page 6 CITY COUNCIL The Edmundston City Council consists of the Mayor and eight Councillors elected every four years. The current Council was elected in May 2016. Here are the active involvements of the municipal council members for the year 2019. Responsibilities and committees Cyrille Simard, Mayor - Association francophone des municipalités du Nouveau- Brunswick’s (AFMNB) Board of Directors (10 meetings) - Cities of New Brunswick Association’s Board of Directors (CNBA) (10 meetings) - Community stars recognition ceremony - Ex-officio member of municipal committees o Finance committee o Standing committee of emergency measures o Municipal by-laws and administrative policies committee - FCM National Rail Safety Committee (4 meetings) - Federation of Canadian Municipalities’ (FCM) annual conference - Municipal development plan review workgroup (4 meetings) - New international bridge construction project (8 meetings) - Northwest Regional Service Commission (10 meetings) - Official spokesman for municipal council - Safeguard of the automobile museum workgroup (4 meetings) - Secrétariat à la jeunesse workgroup (4 meetings) Eric Doiron, Councillor, ward 2 - Community stars recognition ceremony - Municipal development plan review workgroup (1 meeting) - Standing committee on emergency measures Edmundston – 2019 Annual Report Page 7 Charles Fournier, Councillor, ward 4 and Deputy Mayor until May 2019 - Association francophone des municipalités du Nouveau- Brunswick’s annual conference - Committee on by-laws and administrative policies (6 meetings) - Community stars recognition ceremony - Fraser Edmundston Golf Club executive committee (19 meetings and community involvement) - Municipal development plan review workgroup (4 meetings) - Secrétariat à la jeunesse workgroup (1 meeting) Éric Marquis, Councillor, ward 3 - Association francophone des municipalités du Nouveau-Brunswick’s annual conference - Community stars recognition ceremony - Finance committee (9 meetings, including 1 by telephone) - Monseigneur-W.-J.-Conway Library Commission (4 meetings) - Municipal development plan review workgroup (3 meetings, including 1 by telephone) - Secrétariat à la jeunesse workgroup (1 meeting) Éric McGuire, Councillor, ward 4 - Finance committee (9 meetings) - Pension fund committee (4 meetings) - Municipal development plan review workgroup (4 meetings) - Secrétariat à la jeunesse workgroup (1 meeting) Gérald Morneault, Councillor, ward 3 - Committee for an equity policy in local governance in partnership with the AFMNB (4 meetings) - Committee on by-laws and administrative policies (6 meetings) - Community stars recognition ceremony - Finance committee (11 meetings) - Municipal development plan review workgroup (4 meetings) - Secrétariat à la jeunesse workgroup (1 meetings) Edmundston – 2019 Annual Report Page 8 Lise Ouellette, Councillor, ward 1 and Deputy Mayor since May 2019 - Association francophone des municipalités du Nouveau-Brunswick’s annual conference - Committee on by-laws and administrative policies (6 meetings) - Community stars recognition ceremony - Demographic growth action group (8 meetings) - Municipal development plan review workgroup (3 meetings) - Planning advisory committee (6 meetings) - Public libraries consultation meetings - Secrétariat à la jeunesse workgroup (1 meeting) - Selection committee for Arts and Culture Hall of Fame Camille Roy, Councillor, ward 2 - Association francophone des municipalités du N.-B.’s annual conference - Atlantic Canada Opportunities Agency (1 meeting) - Committee on by-laws and administrative policies (6 meetings) - Community stars recognition ceremony - Employer bargaining committee (9 meetings) - Federation of Canadian Municipalities’ annual conference - Municipal development plan review workgroup (4 meetings) - Secrétariat à la jeunesse workgroup (1 meeting) - Standing committee on emergency measures (1 meeting) Michel Serry, Councillor, ward 1 - Demographic growth action group (8 meetings) - Edmundston Sports Hall of Fame selection committee (3 meeting) - Federation of Canadian Municipalities’ annual conference - Finance committee (9 meetings) - Municipal development plan review workgroup (4 meetings) - Secrétariat à la jeunesse workgroup (1 meeting) Edmundston – 2019 Annual Report Page 9 Council remuneration Section 49 of the Local Governance Act stipulates that local governments may pay salaries and allowances to mayors and councillors. The salaries and travel expenses for City Council members are defined in by-law 2R2018. In 2019, salaries and expenses totaled $ 246,128. They are presented in detail in the table below. Salaries Allowances Travelling expenses Cyrille Simard, Mayor $52,356 $5,725 $5,150 Eric Doiron, Councillor $16,785 $1,840 $1,480 Charles Fournier, Councillor and Deputy Mayor from January to May $18,503 $4,995 $2,068 Eric Marquis, Councillor $16,785 $3,870 $1,480 Eric McGuire, Councillor $16,785 $3,165 $1,480 Gérald Morneault, Councillor $16,785 $3,555 $1,480 Lise Ouellette, Councillor and Deputy Mayor from May to December $19,238 $4,155 $2,298 Camille Roy, Councillor $16,785 $5,785 $1,480 Michel Serry, Councillor $16,785 $3,835 $1,480 TOTAL $190,807 $36,925 $18,396 City Council public meetings Regular and special public meetings All regular City Council public meetings are held in the Saint-Jean Room on the 2nd floor of City Hall, 7 Canada Road. All Regular and special council meetings, as well as all Council meeting committees, are public. Regular public meetings are held on the third Tuesday of each month. It is possible to watch regular public meetings on Facebook live. A special meeting occurs when Council determines that pressing questions can’t wait until a regular meeting or require a lengthy discussion. The public may view minutes of Council in the Clerk's office during office hours. They are also published on the City's website in the City Hall / Public Meetings section. In 2019, the following regular and special meetings were held: Members 15/01/2019 19/02/2019 19/03/2019 09/04/2019 30/04/2019 21/05/2019 18/06/2019 21/06/2019 16/07/2019 22/07/2019 20/08/2019 17/09/2019 15/10/2019 12/11/2019 19/12/2019 17/12/2019 R R R R S R R S R S R R R R R R Cyrille Simard x x a x x x x a x x x x a x x x Eric Doiron a x x x x x x x x x x x x a x x Charles Fournier x x x x x x x a x x x x x x x x Edmundston – 2019 Annual Report Page 10 Members 15/01/2019 19/02/2019 19/03/2019 09/04/2019 30/04/2019 21/05/2019 18/06/2019 21/06/2019 16/07/2019 22/07/2019 20/08/2019 17/09/2019 15/10/2019 12/11/2019 19/12/2019 17/12/2019 Eric Marquis x a x a x x x x x x x x x x x x Eric McGuire x x x x x x x x x x a x x x x x Gérald Morneault x x x x x x x x x x x x x x x x Lise Ouellette x x x x x x x x x x x x x x x x Camille Roy x x x x x x x x x x x x x x x x Michel Serry x x x x x x x a a x x a x x x x R = Regular S = Special x = present a = absent Committees and closed door council meetings City Council holds closed door meetings to discuss topics permitted by the Local Governance Act. These meetings are held in one of the meeting rooms of City Hall. Here are the details of these meetings: Finance committee 23/01/2019 04/03/2019 13/03/2019 01/1/2019 01/05/2019 16/10/2019 08/11/2019 27/11/2019 05/12/2019 Cyrille Simard a a a a a a a a a Eric Doiron - - - - - - - - - Charles Fournier - - - - - - - - - Eric Marquis x x c x x x x x x Eric McGuire x x x x x x x x x Gérald Morneault x x x x a x a x x Lise Ouellette - - - - - - - - - Camille Roy - - - - - - - - - Michel Serry x x x x x x x x x x = present a = absent c = by conference call - = was not part of the committee at that time Edmundston – 2019 Annual Report Page 11 Committee on by-laws and administrative policies 21/03/2019 05/04/2019 21/05/2019 16/06/2019 26/09/2019 29/2102019 Cyrille Simard a a a x a x Eric Doiron - - - - - - Charles Fournier x x x x x x Eric Marquis - - - - - - Eric McGuire - - - - - - Gérald Morneault x x x x x x Lise Ouellette x x x x x x Camille Roy x x x x x x Michel Serry - - - - - - x = present a = absent c = by conference call - = was not part of the committee at that time Closed door council meetings Cyrille Simard Eric Doiron Charles Fournier Eric Marquis Eric McGuire Gérald Morneault Lise Ouellette Camille Roy Michel Serry 08/01/2019 x a x c x x x a x 15/01/2019 x a x x x x x x x 22/01/2019 x x x x a x x x x 30/01/2019 x a x c x a x x a 04/02/2019 x x x c x x a x x 11/02/2019 x a x x a x x x x 19/02/2019 x x x c x x x x x 26/02/2019 x a x c x x x a x 11/03/2019 a x x c x x x x a 12/03/2019 x c x x x x x x x 19/03/2019 a x x x x x x x x 26/03/2019 x x x x c x x x x 02/04/2019 x x x x x x x x x 05/04/2019 x x x x a x x x x 09/04/2019 x x x a x x x x x 10/04/2019 x x x c x x x x x 06/05/2019 x a x x a x x x x 14/05/2019 x a x x x x x x x 21/05/2019 x x x x x x x x x 24/05/2019 x x x c x x x x x 28/05/2019 x a x x a x x x x 04/06/2019 x a x x x x x a a Edmundston – 2019 Annual Report Page 12 Cyrille Simard Eric Doiron Charles Fournier Eric Marquis Eric McGuire Gérald Morneault Lise Ouellette Camille Roy Michel Serry 10/06/2019 x a a x a x x x x 11/06/2019 x x x x x x x x x 12/06/2019 x a x x x x x x x 18/06/2019 x x x x x x x x x 02/07/2019 x x x x x x x x x 09/07/2019 x x a c a x x x c 16/07/2019 x x x x x x x x a 23/07/2019 x x x x x x x x x 30/07/2019 x x x a a x x x x 31/07/2019 x a a x x x x x x 07/08/2019 x x x x x x x x x 27/08/2019 x a a a x x x a x 03/09/2019 x x x x x x x a x 10/09/2019 x a x x x x x x x 12/09/2019 x a x a a x x x a 17/09/2019 x x x x x x x x a 24/09/2019 c a x x x x x x x 30/09/2019 x x x x a x x x x 08/10/2019 x a x x x x x x x 15/10/2019 a x x x x x x x x 24/10/2019 x x x x x x x x a 29/10/2019 x a x x x x x x x 5/11/2019 x a x x x x x x x 12/11/2019 x a x x x x x x x 19/11/2019 x x x x x x x x x 26/11/2019 x a x x x x x x x 3/12/2019 x a x x a x x x x 10/12/2019 x a x x x x x x x 13/12/2019 x x x x a x x x x 17/12/2019 x x x x x x x x x x = present a = absent c = by conference call Work sessions for municipal development plan review Cyrille Simard Eric Doiron Charles Fournier Eric Marquis Eric McGuire Gérald Morneault Lise Ouellette Camille Roy Michel Serry 01/03/2019 x a x c x x x x x 07/03/2019 x a x x x x x x x 14/03/2019 x a x a x x a x x 22/03/2019 x x x x x x x x x Edmundston – 2019 Annual Report Page 13 PROPERTY TAX RATE Edmundston City Council has just adopted the 2019 operating budgets. Edmundston continues to maintain a tax rate among the lowest in the province. Thus, the city of Edmundston's tax rate remains fixed at $1.6350 per hundred dollars of assessment for 2019, which is the same rate for a sixth consecutive year. "We are proud to present a balanced budget with no property tax increase again this year. We are also very pleased to see our debt ratio maintained at 14.6% even with the addition of the loan for the construction of the amphitheatre. We can attest to our tight control on spending and our good planning in terms of debt management, "said Edmundston Mayor Cyrille Simard. The City of Edmundston has a net budget of $28,660,029. Development 6% Legislative 1% Administrative Services 10% Fire Protection Public Works 9% 23% Debt services 15% Recreation and Sports 13% Capital costs 2% Edmundston – 2019 Annual Report Page 14 SUBSIDIES FOR SOCIAL OR ENVIRONMENTAL PURPOSES One of the goals of a local government, as outlined in the Local Governance Act, is to promote the economic, social and environmental well-being of its community. Thanks to their efforts, community organizations support the municipality in this mission. Only $500 grants or more are included in this report. For more information, please contact City Hall staff. In 2018, the City of Edmundston made the following grants: Beneficiary Purpose Benefits for the city Total Agence Jaune Public development organization Promotion of health, education, cultural identity, inclusion, etc. $560.50 Ailes du Madawaska Inc. (Les) Festival Economic and tourism development $5,735.07 Baseball mineur d'Edmundston Minor baseball weekend Youth development - recreation, sports, culture, community life $2,071.48 Blizzard d'Edmundston Community activity Youth development - recreation, sports, culture, community life $700.06 Carnaval en rafale Community celebration Development of community life and commitment $4,364.25 Centre d'Intervention en Troubles d'apprentissage inc. Information session Promotion of health, education, cultural identity, inclusion, etc. $3,619.63 Centre Maillet (Édifice Maillet Inc.) Community activities Development of community life and commitment $1,641.92 Club de baseball Senior d'Edmundston Inc. Minor baseball camp, fundraising and playoff preparations Youth development - recreation, sports, culture, community life $1,813.48 Club de golf Fraser Edmundston Landscaping and maintenance, snow clearing and repair of water pipes Economic and tourism development $26,180.20 Club de judo central Edmundston Canadian championship Economic and tourism development $7,146.58 Club Élégance d'Edmundston Provincial and regional competitions Economic and tourism development $4,372.29 Club Xpression Provincial and regional competitions Youth development - recreation, sports, culture, community life $3,893.67 Comité de parents pour la graduation 2019 Community and year-end activities Development of community life and commitment $6,879.67 Comité d'intégration communautaire Community activity and fundraising Development of community life and commitment $2,551.19 Comité du Centre diocésain Community and year-end activities Development of community life and commitment $4,761.06 Comité du parc d’eau Community activities Promotion of health, education, cultural identity, inclusion, etc. $749.90 Edmundston – 2019 Annual Report Page 15 Comité Régional des Jeux de l'Acadie Madawaska- Victoria Inc. Regional competition Youth development - recreation, sports, culture, community life $248.53 Comité Sortie branchée Community activity Development of community life and commitment $16,580.17 Défilé de Noël Community activity Development of community life and commitment $17,908.55 Diner en Blanc Edmundston Community activity Economic and tourism development $18,129.21 École de Chant Jessie Guerrette Signing classes, permanent tenant. Promotion of health, education, cultural identity, inclusion, etc. $253.12 Escalade Edmundston Climbing Promotion activity Start-up of a new activity or new organization $576.08 Festival de bière d'Edmundston Inc. Community activity Economic and tourism development $2,626.90 Festival de Jazz et Blues d'Edmundston Major festival Economic and tourism development and promotion of health, education, cultural identity, inclusion, etc. $42,793.13 Foire Brayonne Inc. (La) Festival for the whole family (music, activities, etc.) Economic and tourism development $75,290.40 Fondation Bob Fife Inc. Foundation fundraising Development of community life and commitment $575.08 Fondation de l'Hôpital régional d'Edmundston Foundation fundraising Development of community life and commitment $13,515.83 Garderie Mont Ste-Marie Inc. Year-end activity Promotion of health, education, cultural identity, inclusion, etc. $2,813.77 Jardin botanique du N.-B. Snow clearing and community and cultural activities (La Grande Grouille) Economic and tourism development and development of community life and commitment $15,266.64 L'Association régionale Les Artisans du P'tit So Promotion activity Development of community life and commitment $2,761.10 Musée historique du Madawaska Community activities Development of community life and commitment $919.97 Natation Edmundston Swimming Inc. Provincial competition Youth development - recreation, sports, culture, community life $13,286.51 Noël Magique du Nord- Ouest Inc. (Un) Community activities Development of community life and commitment $3,865.61 Opération Nez Rouge Community activity Development of community life and commitment $1,001.24 P.R.O. Jeunesse Community activity Development of community life and commitment $724.62 Patrouille canadienne de ski d'Edmundston Community activity Development of community life and commitment $5,438.94 Refuge Madawaska Shelter Inc. Community activities Development of community life and commitment $1,059.00 Edmundston – 2019 Annual Report Page 16 Salon du livre d'Edmundston inc. Community activities Development of community life and commitment and promotion of health, education, cultural identity, inclusion, etc. $19,725.55 Secrétariat à la Jeunesse High school theatre company Promotion of health, education, cultural identity, inclusion, etc. $296.00 SmartVoice Signing school, permanent tenant Promotion of health, education, cultural identity, inclusion, etc. $282.62 Soccer Edmundston Year-end tournament Youth development - recreation, sports, culture, community life $2,546.38 Société canadienne du cancer - Relais pour la vie Community activity and fundraising Development of community life and commitment $9,260.13 Société développement centre des affaires Edmundston Community activities Development of community life and commitment $1,546.81 Symposium Coloris d'automne Organizing a “creative bubble” activity during the symposium and fees for artists on stage during the event. Promotion of health, education, cultural identity, inclusion, etc. $2,500.00 Troupe communautaire des Jeunes Acteurs du Madawaska inc. Artist development and cultural organization Promotion of health, education, cultural identity, inclusion, etc. $612.00 Université de Moncton, campus d'Edmundston Cultural partner Promotion of health, education, cultural identity, inclusion, etc. $121.37 Vélo Edmundston Season opening, maintenance of trails and support for provincial competition Youth development - recreation, sports, culture, community life and economic and tourism development $3,973.95 Somme $353,540.16 Edmundston – 2019 Annual Report Page 17 ECONOMIC DEVELOPMENT ACTIVITIES AND SUBSIDIES Only $ 500 subsidies or more are included in this report. For more information, contact City Hall staff. In February 2019, Edmundston launched its new wave of municipal incentive programs as well as new ones. Due to the great success of the 2015-2018 development incentive programs, the municipal council proceeded with the launch of the new wave and added two new programs to encourage the establishment of businesses in industrial parks as well as housing construction in already established neighborhoods. The most recent assessment shows that the 2015-2018 Edmundston economic development support programs achieved excellent results: 15 investment projects, 10 facade renovation projects and 51 new businesses were launched during this period. In addition, 79 full-time jobs and 62 part-time jobs were created or maintained. The first wave of incentives ended on December 31st, 2018. Thereby, after analysis, two of the initial programs are back, and two new programs have emerged. The "Entrepreneurship, it’s in my nature!" program has returned and is targeting business start-ups offering a nonrepayable contribution equivalent to three months' rent (or 6 months if it,s downtown) and 50% of the cost of manufacturing a facade sign. The "Renovating, it's in my nature!" program also made a comeback. Its purpose is to support major commercial buildings renovation initiatives on Church Street and Canada Road. It is offered in addition to the CBDC program, which provides special funding for all renovations. The first new program this year is "Living here, it's in my nature!" which aims to encourage the construction of new residences on land already served by municipal water, sewer and electricity services. The eligible owner, who has built a housing unit with a minimum value of $100,000 on eligible land, will receive an amount of $6,300, which represents one year of property taxes, water and sewer services as well as electricity, for a residence of average value. "To develop, It’s in my nature!", also a newprogram, will encourage existing and new businesses to establish and expand in one of Edmundston’s industrial parks offering them a reimbursement of up to 100% of the land purchase cost. If the municipal council chose to maintain the programs and create new ones, it is because the experience has brought tangible results since 2015, , including a significant number of jobs. For Mayor Cyrille Simard, the programs are excellent tools to encourage economic development. "It is clear that we want to boost the entrepreneurial spirit here and for people to choose Edmundston to establish their business and their family. The programs are a huge asset to our development efforts. ” The terms and forms are available on the municipal website under the “Development” section. The economic development endorsements are listed below. All were required to follow the program’s terms and conditions as well as their agreement letter. Entrepreneurship, it’s in my nature! – Business start-up Program Beneficiary Amount Abies Consultants Inc. $3,900 Beauté Esthétique Karine $3,109 Épicerie Africaine Le Nimba inc. $1,295 Edmundston – 2019 Annual Report Page 18 Beneficiary Amount Esthét'Isa Esthétique $1,455 Financière Sun Life $3,456 Moonshin'hers Café Bistro Inc. $5,000 MPC Healthy Feet Inc. / MPC Footech $5,138 Pur et Simple Edmundston $5,000 Zena Salon Spa $4,700 $33,053 Renovating, it’s in my nature! – Commercial facade renovation Program Beneficiary Amount J. Frank Rice Co. Ltd. $10,000 645857 inc. $12,000,00 Production Rouj $10,000,00 Au Bout du Monde inc. $8,000,00 Bijouterie Rino Martin $6,000,00 $46,000,00 Living here, it’s in my nature! – Construction of a first dwelling on a serviced residential lot Program Beneficiary Amount Cécile Lizotte $6,300 Luc St-Jarre $6,300 Mathieu Blanc et Marie-Pier Langis $6,300 Stevenson Casimir $6,300 $25,200 To develop, it’s in my nature! – Municipal industrial parks development Program Beneficiary Amount No requests in 2019 $0 Investing, it’s in my nature! - Investment in multi-unit housing or commercial buildings Program Beneficiary Amount Alonzo et Marie Noëlla Desjardins $2,400 ALPA EQUIPEMENT LTÉE $7,000 Bruce Morin Construction $4,600 Dentisterie Intégrale $6,000 Dynas inc. $2,400 Manoir Bellevue inc. $4,750 RPB Construction ltée $1,250 RPB Construction ltée $2,400 Edmundston – 2019 Annual Report Page 19 RPB Construction ltée $4,000 RPB Construction ltée $7,000 VonGarten Estates (608128NB inc.) $4,600 $46,400 Other funding offered through municipal programs Events support Beneficiary Amount Edmundston Blizzard – MHL draft $1,000 Edmundston Central Judo Club for the organization of the Eastern Canadian Judo Championship $2,500 Funk & Bier – Beer festival – 1st edition $1,000 Gymnastics championship $1,000 N.B. men’s amateur golf championship $1,000 Peewee provincial tournament $500 Soccer Edmundston for the organization of the 2nd edition of the Edmundston car show $3,000 Sortie Branchée for the organization of shows on the occasion of August 15th $4,000 $14,000 Special projects Beneficiary Object Benefit for the municipality Amount Baseball mineur Edmundston Annual operations Youth development - recreation, sports, culture, community life $10,888 CBDC Madawaska Business launch program Economic and tourism development $5,000 COVESNO Annual operations Economic and tourism development $2,000 Destination Canada Immigration attraction mission Economic and tourism development $1,327 Gris Acadie Group creation Promotion of health, education, cultural identity, inclusion, etc. $1,872 Leader - Acadie des Terres et Forêts Annual operations Economic and tourism development $16,580 Mériumticook Trail Signage Economic and tourism development $2,954 Université de Moncton, campus d'Edmundston Financial campaign Promotion of health, education, cultural identity, inclusion, etc. $25,000 Edmundston – 2019 Annual Report Page 20 Beneficiary Object Benefit for the municipality Amount $65,621 Community and related partners Beneficiary Object Benefit for the municipality Amount Atelier R.A.D.O. inc. Annual operations Development of community life and commitment $5,000 Service AUTO-nomie Annual operations Development of community life and commitment $3,300 Camp Scout Utility costs Development of community life and commitment $775 Centre Maillet inc. Annual operations Development of community life and commitment $30,000 Edmundston Arts Centre Annual operations Development of community life and commitment $120,000 Edmundston Convention Centre Annual operations Economic and tourism development $95,999 Edmundston Madawaska Tourism Office Annual operations Economic and tourism development $156,428 Golf Edmundston Annual operations Economic and tourism development $138,217 IDÉE inc. / Évènement Edmundston Annual operations Economic and tourism development $93,857 Madawaska Airport Annual operations Economic and tourism development $156,094 Northwest Regional Service Commission Annual operations General services and regional development $52,985 Secrétariat à la Jeunesse Annual operations Youth development - recreation, sports, culture, community life $64,500 $917,155 Other development activities held in 2019 Creation of a demographic growth action group In 2019, aware of the urgency to ensure the continued social and economic growth of the city and the region, the municipality set up the population growth action group. This action group, composed of citizens, economic partners, elected officials and municipal employees, was mandated to propose a strategy and an action plan to the municipal council favouring the demographic growth of the municipality. Edmundston – 2019 Annual Report Page 21 The mandate of the work group specifically studied the retention and repatriation of young people and families already residing in the region or originating from the region, without forgetting people coming from other regions or provinces. However, since the main source of entrance for new citizens will be related to immigration, the work group had to consider municipal initiatives necessary for the development of a welcoming ecosystem, integrating and retaining new immigrant citizens as well as including international students. On the other hand, several retention and attraction measures apply equally to residents and to newcomers, whatever their origin. Within the framework of its community mandate, the work group has identified three main priorities: • To retain young people specifically and the population already living in Edmundston, including newcomers who study or have already settled in Edmundston. • To repatriate citizens originally from the region, mainly those active in the labour market, but currently residing in other regions of the province or the country. • To attract people living in Canada or abroad who are able to contribute to the needs of the job market and to the vitality of the community. At the beginning, the work group recommended, within the framework of the “Communauté francophone accueillante” initiative that the municipality, within the framework, undertake a major campaign to raise public awareness of the economic and social importance of immigration and the added value of cultural diversity. In addition, updating municipal digital information tools is a prerequisite for the entire population and, in particular, new residents, to have access to the diversity of services and activities offered by the municipality and community partners. The report of the demographic growth action group having been favourably received by the municipal council, the next step will be to mobilize the resources of the municipality and the community partners to develop a concrete action plan and efficiently meet the demographic challenge of the municipality and the region. “Communauté francophone accueillante” The City of Edmundston, in partnership with Haut-Madawaska Rural Community and the Madawaska Maliseet First Nation, has been selected to participate in the Department of Immigration, Refugees and Citizenship Canada (IRCC) initiative. This project is a community-based initiative, responding to the needs expressed by Francophone minority communities during the 2015 and 2017 Francophone immigration consultations. The purpose of the initiative is to support the consolidation of the Francophone immigrant’s integration journey. The “Communauté francophone accueillante” initiative will facilitate the welcoming, support and retention of French-speaking newcomers to Canada. IRCC has selected 14 communities which will share a total amount of $12.6 million over three years. Carrying out projects that aim to make French-speaking newcomers feel welcome and develop a feeling of belonging in their new community, thereby stimulating retention rates. In New Brunswick, a total of $981,000 (over three years) will be invested in the Haut-Saint-Jean region. The community action plan will be implemented as of2020. Haut St-Jean Zonal Immigration Partnership Also in partnership with Haut-Madawaska Rural Community and the Madawaska Maliseet First Nation, the City of Edmundston helped create the Haut St-Jean Zonal Immigration Partnership (ZIP). The objective is to continue and strengthen concerted immigration efforts and acquire a resource to support and coordinate regional planning and Edmundston – 2019 Annual Report Page 22 mobilization efforts; promotion and recruitment; welcoming, establishment, integration and retention in this field. The position created reports to the Edmundston Chamber of Commerce, under the leadership of the ZIP concertation table, also provides administrative, coordination, facilitation and communication services as part of the council's daily operations of the partnership, and other immigration activities related to the partnership including the “Communauté francophone accueillante” initiative. This resource is also responsible for ensuring that the three communities, with various provincial, regional and municipal stakeholders, have the capacity to properly support businesses in their efforts to hire workers relocating to the region. Manufacturing path One of the Canadian manufacturing industry’s main challenges is the renewal of its workforce and the Madawaska region is not immune to this reality. With manufacturing being a highly represented sector in northwestern New Brunswick, it was essential to find innovative initiatives that would be part of this labour shortage overall solution. The City of Edmundston’s Development Department has therefore fostered collaboration between part of the manufacturing companies’ managers group of Madawaska, the District scolaire francophone du nord-ouest and the Cité des Jeunes A.-M.-Sormany high school to inform young people of the multitude of careers offered by the manufacturing sector and to prepare them for it. The manufacturing path is a program that will be offered to students in grades 10 to 12, starting in February 2020. The objective is to create an option that can adapt high school education to the reality of the local manufacturing industry and, more specifically, Madawaska region manufacturing companies.. Students who enroll in this course will receive preparatory training for a career in the manufacturing sector. Although this training is enhanced with real examples from local manufacturing companies, this program is much broader in scope and can serve as a general introduction to the job market. In March 2019, the pilot project was presented to the students and from then on, they were able to choose courses and get credits towards obtaining their manufacturing path. A big surprise awaited the school team and the manufacturing companies’ managers group of Madawaska. Over 140 students registered for the first course offered in February, Health and Safety in the Workplace. Given the success of the recruitment process, the high school management has created a team of four teachers for the manufacturing path. The latter will be partially released from their duties in the classroom to allow them to develop the courses that will be offered. This approach was chosen to develop a sustainable model allowing the course offer to be maintained after the "pilot" phase of the initiative, i.e. after 3 years. Edmundston – 2019 Annual Report Page 23 MUNICIPAL DEVELOPMENT PLAN REVIEW At its monthly public meeting of Tuesday August 20th2019, the City Council adopted the new municipal development plan. It serves as the main guidance tool that establishes a regulatory framework for municipal development and investments, and replaces the previous document adopted in 2007. It is based on a number of public consultations conducted through the "imagine edmundston" initiative, the aspirations of the citizens that stood out through the initiative, analysis of the development context specific to the Edmundston area, as well as the assessment of best practices in land-use planning that emanates from this new way of thinking forging the development of the city. With the “imagine edmundston” initiative, citizens were able to suggest projects, practices and policies to truly make Edmundston a city of their own, and to see it develop over the next 10 years. « From the innovative initiative that was “imagine edmundston”, we managed to engage in a real conversation with the population. We look forward to the results and embrace the new development plan with enthusiasm as it marks the beginning of new directions to further improve the quality of life in Edmundston, » said Mayor Cyrille Simard. City Administration and Council are already hard at work to create an action plan to prioritize the interventions within the city, in particular to improve downtown Edmundston’s safety and traffic, to establish a tourist interception strategy at Entry 18 and to implement the strategic plan for bike related development in Edmundston. The plan, which can be consulted and downloaded via the municipal website, will be implemented officially as of September 1st, 2019. Edmundston – 2019 Annual Report Page 24 SERVICES The water and sewer rate, which remains one of the lowest in the province, will see a slight increase this year. It will be fixed at $775 (fixed base rate). This adjustment is adopted in order to realize capital projects, including the improvement of the networks, without borrowing. The water and sewer total budget fund is $6,749,242 for the year 2019. The debt ratio for this service has decreased from 18.2% to 17.7% compared to last year's budget. For its part, Edmundston Energy's total budget is $34,546,833, very similar to last year's. Edmundston Energy has not budgeted a rate increase for 2019. Its debt ratio will be maintained at 11.8% for the year 2019. "Budgets respect the primary mission of our organization, which is to provide quality services to the public while ensuring that our infrastructures and equipments are maintained in good condition," concluded Mayor Simard. The expenses of the three municipal funds and their respective departments are included in the financial statements in Appendix A. INVESTMENT PLANS During the January 15th, 2019, monthly public meeting, Edmundston City Council has adopted the investment plans of the general fund and the water and wastewater disposal services, and generation facility funds. Investments in the three funds total $9,819,000. Most of these investments are conditional on obtaining federal / provincial grants as well as approval of loan applications. The proposed investments reflect City Council's commitment to target investments that enhance the citizens’ quality of life, that will have a positive impact on community development, and that will respect the intentions of the Municipal Asset Management Plan, of which municipalities are now required to adopt and follow. "In terms of investments, City Council must make decisions that are sensible and reasonable, while proposing strategic projects that promote the overall development of the municipality," explained Mayor Cyrille Simard. The proposed investments are distributed as follows: General fund $7,717,000 Water and wastewater disposal services fund $1,357,000 Generation facility fund $745,000 Edmundston – 2019 Annual Report Page 25 Here are the details for each of the three municipal funds. General Operating Fund Projects Estimated costs General administration services Alertus – municipal alert system $13,000 Improvements to computer network $40,000 Update of « Delta » automating system $40,000 Air conditioning system – City hall $20,000 Partial sum: General administration services $113,000 Protection services Fire and Safety – firefighting equipment $85,000 Police – 911 Centre – new T.M.R. system (Phase 1 of 2) $400,000 Police – equipment – T.M.R. (trunk mobile radio system) $220,000 Police - vehicle – Judicial Identification section $60,000 Partial sum: Protection services $765,000 Urban planning services Christmas decorations $50,000 Cycling trail – fence $20,000 Partial sum: Urban planning services $70,000 Recreational and cultural services Saint-Basile Arena (roof) $415,000 Security barricades $20,000 Mgr-W.-J.-Conway Library – Fraser room $8,000 Parks – WIFI $45,000 Sports pavilion – pool $108,000 Sports pavilion – sprinkler system $35,000 Place Centre-ville $30,000 Foire Brayonne stage $10,000 Vehicle – one-ton truck #07-7190 $8,000 Partial sum: Recreational and cultural services $679,000 Transportation related services Purchase of parcel of land PID 35186584 – Victoria Street $10,000 Purchase of parcel of land PID 35297761 – Victoria Street $10,000 Purchase of land – Edgar-Boucher Avenue $15,000 Improvements to environmental management of snow dumps (Year 3 of 3) $12,000 Improvements to buildings – doors and windows, air quality $20,000 Pursuit of asset management program $30,000 Equipment – gaz pumps – municipal garage $35,000 Edmundston – 2019 Annual Report Page 26 Heavy equipment – loader $350,000 Heavy equipment – Pup trailer #91-3264 $30,000 Guardrails $30,000 New retaining walls $20,000 New retaining walls – Costigan Street $70,000 New storm water facilities $55,000 Pavement – Laporte Street (Route 120) $85,000 Pavement – Hébert Boulevard $550,000 Pavement – Principale Street (Saint-Basile) $865,000 Pavement and sidewalks – paving program $813,000 Pavement – Hill Street $55,000 Rivière-à-la-Truite - reconstruction of the bank near bridge of Demers Street $135,000 McRae Creek – De La Capitale Boulevard – purchase of land PID 35303817 $30,000$ McRae Creek – De La Capitale Boulevard and Jolaine Street $2,750,000 Equipment – vehicle air conditioning system diagnosis $15,000 Vehicle – ½-ton truck – seasonal #02-3240 $35,000 Vehicle – ½-ton truck – seasonal #05-3294 $35,000 Vehicle – ½-ton truck – #10-3277 $35,000 Partial sum: Transportation related services $6,090,000 Total investments $7,717,000 Water and Wastewater Services Fund Tools $20,000 Fences – water tank $35,000 Transfer switch – 23rd Avenue $12,500 Transfer switch – Edmundston-Nord – Booster $12,500 Distribution of feed water $70,000 Installation of antenna for water meter – phase 1 $50,000 New services – sewer $85,000 McRae Creek – De La Capitale Boulevard and Jolaine Street $300,000 Vehicle – #08-4126 – van $55,000 Vehicle – SUV #13-4111 $40,000 Vehicle – seasonal #10-3276 – ½-ton truck $40,000 Purchase of a backhoe #09-4119 $175,000 Project engineering $80,000 SCADA set-up $75,000 New services – sanitary $70,000 Control panels $32,000 Rehabilitation of sanitary sewer pipes by sheathing $60,000 Pumping stations – fibreglass shelter $125,000 Pumping stations – electrical modifications $20,000 Total investments $1,357,000 Edmundston – 2019 Annual Report Page 27 Electricity generation fund 5 31st Avenue – windows $75,000 Renewal of 3-phase switches $12,000 New transformers $60,000 New meters $26,000 Renewable energy – phase 1 – reduction of greenhouse gases $40,000 New Cross-Arm – within the limits $15,000 Hill Street – underground vault $30,000 Sub-station – Edmundston-Nord – concrete pillars $57,000 Trailer Pole HD 2 axles #88-9832 $40,000 Update SCADA system $45,000 Equipment for vibration analysis $10,000 Vehicle – truck #14-9824 $40,000 Retention pond – transformer (GRH) $90,000 Arc Flash Centrals – hydro-electric $40,000 Shed – 1st Lake $40,000 Madawaska Central – protection relays to MRH1 and GRH centrals $90,000 Substations single line diagram $10,000 Connection of North and Saint-Basile substations to SCADA $25,000 Total investments $745,000 Edmundston – 2019 Annual Report Page 28 LOCAL GOVERNMENT CORPORATIONS The municipality has three incorporated businesses. Centre des arts La Petite Église d’Edmundston inc. Incorporated in 2012, the Centre des arts La Petite Église d’Edmundston Inc. is responsible for the development, promotion and support of the arts and culture sector for the municipality. Located in a former church in the heart of downtown (82 Canada Road), the arts centre is a space dedicated to the creation, diffusion and experience of the arts. Edmundston Arts Centre offers a variety of quality professional programming for everyone, including shows, exhibitions, creative workshops and cultural mediation activities. It also serves as an incubator for creation and professional development for artists, artisans and creators in northwestern New Brunswick. A true crossroads of creativity, it‘s where the public and artists from all disciplines meet on a daily basis, in a friendly and inspiring environment. For more information on the Centre and its programs, visit artsedmundston.ca or call 506-739-2127. The organization held the following meetings: Members 06/11/2019 18/11/2019 Danièle Dubé, President x x Marco Daigle x x Christine Lavoie x x Janel Ouellet x x Richard Plourde x x François Soucie x x x = present a = absent Centre des arts La Petite Église’s financial statements are included in Appendix B. Note that their financial statements are also consolidated with those of the municipality in Appendix A. Gestion Edmundston Golf Management Inc. Incorporated in 2004, Gestion Edmundston Golf Management Inc. is responsible for the golf club’s management and administration. You can find out about their services in person at 570 Victoria Street, Edmundston or on the website: golfedmundston.com. Their Board of Directors consists of: - Henri Allain, President Edmundston – 2019 Annual Report Page 29 - Roger Quimper, Vice-President until June 2019 - Suzanne Turgeon, Treasurer - Marie-Claude Daigle, Secretary The organization held the following meetings: 14/01/2019 31/01/2019 11/02/2019 18/02/2019 18/03/2019 15/04/2019 06/05/2019 16/05/2019 17/06/2019 08/07/2019 05/08/2019 09/09/2019 07/10/2019 11/11/2019 Henri Allain x x x x a a x x x x x x x x Sylvain Charron x x x x x x x x x - - - - - Danielle Côté x x a a x x x x x x x x x x Marie-Claude Daigle x x x x a a x x x x x x x x Charles Fournier x x x x x x x x x x x x x x Luc LeBel a a x x x x x a a x x x x x Roger Quimper x x x x x x x x - - - - - - Suzanne Turgeon x x x x a a x x x x x x x a x = present a = absent - = was not part of the committee at that time Gestion Edmundston Golf Management Inc.’s financial statements are included in Appendix C. Note that their financial statements are also consolidated with those of the municipality in Appendix A. Moitié-moitié Centre Jean-Daigle inc. Incorporated in 2017, Moitié-moitié Centre Jean-Daigle inc. is responsible for the management and control of equipment and fundraisings that take place at the Jean-Daigle Centre and give the profits to non-profit and community organizations in Edmundston The organization held two meetings in 2019, on February 27 and June 27, and all members were present: Marco Daigle, President Jacques Couturier, Secretary Marc Michaud, Director The organization gave the following grants: Beneficiary Object Benefit for the municipality Amount Ambassadeurs de Saint-Jacques Annual operation Youth development - recreation, sports, culture, community life $8,034 Edmundston – 2019 Annual Report Page 30 Amis et Amies du Blizzard inc. Annual operation Youth development - recreation, sports, culture, community life $128,708 As Conrad Lavoie et Fils Annual operation Economic and tourism development $1,699 Club communautaire de hockey mineur d’Edmundston Annual operation Youth development - recreation, sports, culture, community life $3,722 Pionniers du Nord- Ouest Annual operation Youth development - recreation, sports, culture, community life $1,076 Soccer Edmundston Annual operation Youth development - recreation, sports, culture, community life $4,664 $147,903 Moitié-moitié Centre Jean-Daigle inc.’s financial statements are included in Appendix D. Note that their financial statements are also consolidated with those of the municipality in Appendix A. Edmundston – 2019 Annual Report Page 31 APPENDIX A 2019 Audited Financial Statements – Municipality of Edmundston Edmundston Consolidated Financial Statements December 31, 2019 Independent Auditor's Report 2 - 4 Consolidated Financial Statements Consolidated Statement of Operations and Accumulated Surplus 5 Consolidated Statement of Financial Position 6 - 7 Consolidated Statement of Changes in Net Debt 8 Consolidated Statement of Cash Flows 9 Notes to Consolidated Financial Statements 10 - 33 Consolidated Schedules 34 - 40 Independent Auditor's Report To His Honor the Mayor and Members of City Council of Edmundston Opinion We have audited the consolidated financial statements (hereafter the "financial statements") of Edmundston (hereafter ''the Municipality''), which comprise the statement of consolidated financial position as at December 31, 2019, and the consolidated statements of operations and accumulated surplus, the statement of changes in net debt and the statement of cash flows for the year then ended, and notes to consolidated financial statements, including a summary of significant accounting policies, and the consolidated schedules. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Municipality as at December 31, 2019, and the results of its operations and accumulated surplus, the change in its net debt and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the "Auditor’s responsibilities for the audit of the consolidated financial statements (hereafter the "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 (hereafter the "financial statements") in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter – financial information prepared for tax purposes We draw attention to the fact that the municipality includes in its financial statements certain financial information that is not required by the Canadian public sector accounting standards. This information, prepared in accordance with the Province of New Brunswick's municipal financial reporting guide presented on pages 29 and 33, focuses on determining the surplus (deficit) for the year. Our opinion is not modified in respect of this matter. Raymond Chabot Grant Thornton LLP 507 Victoria Street Edmundston, New Brunswick E3V 2K9 T 506-739-1144 Member of Grant Thornton International Ltd rcgt.com 3 Responsibilities of management and those charged with governance for the consolidated financial statements (hereafter the "financial statements") Management is responsible for the preparation and fair presentation of the consolidated financial statements (hereafter the "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 consolidatedfinancial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements (hereafter the "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. Those charged with governance are responsible for overseeing the Municipality’s financial reporting process. Auditor’s responsibilities for the audit of the consolidated financial statements (hereafter the "financial statements") Our objectives are to obtain reasonable assurance about whether the consolidated financial statements (hereafter the "financial statements") as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but 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. 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 (hereafter the "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; 4  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 appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;  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 auditor’s report to the related disclosures in the consolidated financial statements (hereafter the "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 of our auditor’s report. However, future events or conditions may cause the Municipality to cease to continue as a going concern;  Evaluate the overall presentation, structure and content of the consolidated financial statements (hereafter the "financial statements"), including the disclosures, and whether the consolidated financial statements (hereafter the "financial statements") represent the underlying transactions and events in a manner that achieves fair presentation;  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements (hereafter the "financial statements"). We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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 Edmundston April 21, 2020 5 Edmundston Consolidated Statement of Operations and Accumulated Surplus Year ended December 31, 2019 2019 2018 Budget (Unaudited) (Note 28) Actual Actual $ $ $ Revenues Property tax warrant 23,478,752 23,478,752 22,575,015 Services provided to other governments (Page 34) 1,108,213 1,121,611 1,107,630 Sale of services, fines and other revenues (Page 34) 3,232,168 3,265,476 3,287,368 Unconditional grant 5,181,277 5,316,635 5,261,928 Adjustment for payment in lieu of taxes 430 Other government transfers 192,645 2,343,567 8,324,643 Other revenues from own sources (Page 34) 740,420 1,293,686 1,535,870 Contractors and other organizations contributions 139,343 44,000 User fees - Water and sewer services 6,091,733 6,093,927 5,962,333 Sales electrical utility - Distribution 31,115,847 32,754,933 32,247,884 Sales electrical utility - Generation 2,821,409 3,006,386 1,995,159 Interest 101,155 375,636 275,444 74,063,619 79,189,952 82,617,704 Expenses (Pages 35 - 40) General government services 4,013,515 3,410,072 3,042,721 Protective services 10,180,647 9,210,813 8,440,244 Transportation services 9,470,708 9,422,437 8,758,809 Environmental health services 859,246 872,209 783,045 Development services 1,677,645 1,253,764 1,468,291 Recreational and cultural services 9,000,424 8,736,998 8,266,870 Water and sewer collection and disposal 6,832,178 6,509,518 6,215,037 Electrical utility - Distribution 31,469,614 32,390,656 31,943,777 Electrical utility - Generation 2,500,548 2,527,806 2,218,769 Loss on disposal of tangible capital assets 25,058 13,486 76,004,525 74,359,331 71,151,049 Annual surplus (deficit) (Note 25) (1,940,906) 4,830,621 11,466,655 Accumulated surplus, beginning of year 109,616,418 98,149,763 Accumulated surplus, end of year 114,447,039 109,616,418 The accompanying notes and consolidated schedules are an integral part of the consolidated financial statements. 6 Edmundston Consolidated Statement of Financial Position As at December 31, 2019 2019 2018 $ $ FINANCIAL ASSETS Cash (Note 4) 13,157,079 11,961,325 Term deposits 120,908 120,211 Accounts receivables General 6,488,202 6,175,227 Federal gouvernment and its agencies (Note 5) 56,337 306,405 Province of New Brunswick (Note 6) 1,125,926 19,822,526 19,689,094 LIABILITIES Bank loans (Note 17) 5,192,751 6,579,248 Trade payables and other operating liabilities (Note 7) 7,664,390 8,493,336 Holdbacks payable 180,847 514,463 Deferred revenues (Note 8) 318,545 5,817 Debentures (Note 9) 63,109,000 67,419,000 Long-term debt (Note 10) 309,810 729,816 Obligations under capital leases (Note 11) 42,170 81,841 Accrued sick leave (Note 12) 3,525,000 3,525,000 80,342,513 87,348,521 NET DEBT (60,519,987) (67,659,427) 8 Edmundston Consolidated Statement of Changes in Net Debt Year ended December 31, 2019 2019 2018 Budget (Unaudited) Actual Actual $ $ $ Annual surplus (deficit) (1,940,906) 4,830,621 11,466,655 Assets under construction, beginning of year 1,249,084 2,030,355 Assets under construction, end of year (1,082,968) (1,249,084) Acquisition of tangible capital assets (9,819,000) (7,739,725) 7,713,547 Proceeds on disposal of tangible capital assets 163,587 77,810 Amortization of tangible capital assets 11,496,254 11,496,254 11,084,269 Loss on disposal of tangible capital assets 25,058 13,846 Amortization of assets under capital leases 15,603 15,603 17,336 1,692,857 4,126,893 4,260,625 Acquisition of inventory of supplies (1,788,138) (1,899,538) Consumption of inventory of supplies 1,899,538 1,805,428 Acquisition of prepaid expenses (211,659) (133,639) Use of prepaid expenses 133,639 60,898 Post employment benefits surplus, end of year (5,653,187) (3,801,733) Post employment benefits surplus, beginning of year 3,801,733 92,017 (1,818,074) (3,876,567) Decrease (increase) in net debt (248,049) 7,139,440 11,850,713 Net debt, beginning of year (67,659,427) (67,659,427) (79,510,140) Net debt, end of year (67,907,476) (60,519,987) (67,659,427) The accompanying notes and consolidated schedules are an integral part of the consolidated financial statements. 9 Edmundston Consolidated Statement of Cash Flows Year ended December 31, 2019 2019 2018 $ $ OPERATING ACTIVITIES Annual surplus 4,830,621 11,466,655 Non-cash items Amortization of tangible capital assets 11,496,254 11,084,269 Amortization of assets under capital leases 15,603 17,336 Loss on disposal of tangible capital assets 25,058 13,486 Debt forgiveness on forgivable loan (180,000) (5,420,000) Net change in working capital items (Note 3) (1,604,889) (1,072,461) Cash flows from operating activities (a) 14,582,647 16,089,285 CAPITAL ACTIVITIES Acquisition of tangible capital assets and assets under capital leases (7,573,609) (6,932,276) Proceeds from the disposal of tangible capital assets 163,587 77,810 Cash flows from capital activities (7,410,022) (6,854,466) INVESTING ACTIVITIES Investments and cash flows from investing activities (697) 6,575 FINANCING ACTIVITIES Net change in bank loans (1,386,497) (4,883,168) Debentures 3,601,000 6,708,000 Repayment of debentures (7,911,000) (7,167,000) Repayment of long-term debt (240,006) (213,638) Repayment of obligations under capital leases (39,671) (38,218) Cash flows from financing activities (5,976,174) (5,594,024) Increase in cash and cash equivalents 1,195,754 3,647,370 Cash, beginning of year 11,961,325 8,313,955 Cash, end of year 13,157,079 11,961,325 (a) Interest received during the year amounts to $375,636 ($275,444 for the year ended December 31, 2018). Interest paid during the year amounts to $2,237,757 ($2,321,722 for the year ended December 31, 2018). The accompanying notes and consolidated schedules are an integral part of the consolidated financial statements. 10 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 1 - GOVERNING STATUTES AND PURPOSE OF THE ORGANIZATION The Municipality, formaly known as City of Edmundston, was incorporated as a city by the Province of New Brunswick Municipalities Act in 1905 and then merged with the city of Saint-Basile, the Village of Saint- Jacques and the Village of Verret under the article 2 on May 25, 1998 to become Edmundston. As a municipality, Edmundston is exempt from income tax under section 149(1)(c) of the Canadian Income Tax Act. The Municipality has the following vision statement: ''An open, energetic, creative city''. 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of the Municipality are the responsibility of management and are prepared in accordance with the Canadian public sector accounting standard in the CPA Canada Public Sector Accounting Handbook. Significant aspects of the accounting policies adopted by the Municipality are as follows: Reporting entity The consolidated financial statements reflect the assets, liabilities, revenues, expenses and changes in net debt and cash flows of the reporting entity. The city of Edmundston is comprised of all organizations and enterprises accountable for the administration of their affairs and resources to the Municipality and which are owned or controlled by the Municipality. It includes the management of a golf and recreational activities. All interfund assets, liabilities, revenues and expenses have been eliminated. The entities included in the consolidated financial statements are as follows : Centre des Arts La Petite Église d'Edmundston Inc. Gestion Edmundston Golf Management Inc. Moitié-Moitié Centre Jean-Daigle Inc. Budget The budget figures contained in these financial statements were approved by the City Council on December 18, 2018 and the Minister of Local Government on January 17, 2019 and February 4, 2019. Government transfers Government transfers are recognized in the consolidated financial statement as revenues in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made. Transfers received for which expenses are not yet incurred are included in deferred revenue. Revenue recognition Unrestricted revenues are recorded on an accrual basis and are recognized when collection is reasonably assured. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Other revenue is recorded when it is earned. 11 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Deferred revenues Deferred revenues includes grants, contributions and other amounts received from third parties pursuant to legislation, regulation and agreement which may only be used in certain programs, in the completion of specific work, or for the purchase of tangible capital assets. Revenue is recognized in the period when the related expenses are incurred, services performed or the tangible capital assets are acquired. In addition, all funds from external parties and earnings thereon restricted by agreement or legislation are accounted for as deferred revenues until used for the purpose specified. Use of estimates The preparation of the consolidated financial statements in accordance 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 amount of revenues and expenses during the reported period. Theses estimates are reviewed periodically, and as adjustment become necessary, they are reported in earnings in the period in which they become known. Actual results may differ from those estimates.The main estimates include the provision for doubtful accounts with respect to accounts receivable, the useful lives of long lived assets, the provision for post employment benefits and the amount of certain accrued liabilities. Cash and cash equivalents The Municipality's policy is to present in cash and cash equivalents bank balances, including bank overdrafts whose balances fluctuate frequently from being positive to overdrawn, and investments with a maximum maturity of three months from the acquisition date or redeemable at any time without penalty. 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 ordinary course of operations. The change in non-financial assets during the year, together with the annual surplus, provides the change in net debt for the year. Inventory of supplies Inventory of supplies consist mainly of parts and materials for roads, water and sewer systems and electrical utility system maintenance and is valued at the lower of cost or replacement cost. Cost is determined using the weighted average cost method. 12 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Tangible capital assets Tangible capital assets acquired are recorded at cost. When the Municipality receives contributions of capital assets, their cost is equal to their fair value at the contribution date. 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 of the tangible capital asset is amortized on a straight line basis over the estimated useful life as follows: Periods Land improvements 5-25 years Buildings 20-60 years Vehicles 7-25 years Machinery and equipment 3-15 years Water and wastewater facilities 20-60 years Electrical facilities 20-60 years Roads, sidewalks, storm sewers, water and sewer main 15-50 years Asset under construction All assets under construction are not amortized until the asset is substantially complete and put into use. Contribution of tangible capital assets Tangible capital assets received as contributions are recorded in the consolidated statement of financial position at their fair value at the date of receipt and also recorded as revenue. Write-down When conditions indicate that a tangible capital asset no longer contributes to the Municipality's ability to provide goods and services, or that the value of future economic benefits associated with the tangible capital asset is less than its net carrying amount, the cost of the tangible capital asset is reduced to reflect the decline in value. Any write-down of tangible capital assets is accounted for as expenses in the statement of operations and any write-downs are not subsequently reversed. Post employment benefits The Municipality recognizes its obligations under post employment benefit plans and the related costs, net of plan assets. The Municipality has a sick leave benefit as documented in note 12 and a long-term service award and pension plan as documented in note 13. Segment disclosures The Municipality is a diversified municipal unit that provides a wide range of services to its residents. For management reporting purposes, the Municipality's operations and activities are organized and reported by function. This presentation was created for the purpose of recording specific activities to attain certain objectives in accordance with special regulations, restrictions or limitations. Municipal services are provided by departments as follows: 13 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) General government services This department is responsible for the overall governance and financial administration of the municipality. This includes council functions, general and financial management, legal matters and compliance with regulations as well as civic relations. Protective services This department is responsible for the provision of policing services, fire protection, emergency measures, animal control and other protective measures. Transportation services This department is responsible for common services, roads and streets maintenance, street lighting, traffic services, parking and other transportation related functions. Environmental health services The department is responsible for the provision of waste collections and disposal. Development services This department is responsible for planning and zoning, community development, tourism and other municipal development and promotion services. Recreational and cultural services This department is responsible for the maintenance and operation of recreational and cultural facilities, including swimming pools, arenas, parks and playgrounds and other recreational and cultural facilities. Water and Wastewater systems This department is responsible for the provisions of water and sewer services including the maintenance and operation of the underground networks, treatment plants, tanks and lagoons. Electric systems This department is responsible for the supply of electricity, including the maintenance of power lines and electrical installations. 14 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 3 - INFORMATION INCLUDED IN THE STATEMENT OF CASH FLOWS The net change in working capital items is detailed as follows: 2019 2018 $ $ Accounts receivable 1,063,019 6,722,814 Trade payables and other operating liabilities (828,946) (227,783) Holdbacks payable (333,616) (2,576,060) Deferred revenues 312,728 (1,114,865) Inventory of supplies 111,400 (94,110) Prepaid expenses (78,020) (72,741) Post employment benefits payable (1,851,454) (3,709,716) (1,604,889) (1,072,461) 4 - CASH 2019 2018 $ $ Cash - restricted 5,644,616 4,484,589 Cash - unrestricted 7,512,463 7,476,736 13,157,079 11,961,325 5 - RECEIVABLES FROM FEDERAL GOVERNMENT AND ITS AGENCIES 2019 2018 $ $ Canada Revenue Agency (HST refund) 56,337 140,353 Clean Water and Wastewater Fund 166,052 56,337 306,405 6 - RECEIVABLES FROM PROVINCE OF NEW BRUNSWICK 2019 2018 $ $ Transportation and Infrastructure Department 1,042,900 Clean Water and Wastewater Fund 83,026 1,125,926 7 - TRADE PAYABLES AND OTHER OPERATING LIABILITIES 2019 2018 $ $ Accounts payable and accrued liabilities 6,021,768 6,685,835 Salaries payable 661,905 884,769 Accrued interest 214,940 229,247 Government remittances 145,603 124,554 Clients deposits 477,722 424,039 Contractors' deposits 142,452 144,892 7,664,390 8,493,336 15 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 8 - DEFERRED REVENUES 2019 2018 $ $ Deferred grants 297,451 Other deferred revenues 21,094 5,817 318,545 5,817 9 - DEBENTURES 2019 2018 $ $ GENERAL CAPITAL FUND New Brunswick Municipal Financing Corporation BA3 0.95% - 5%, due in 2019, OIC #06-0042, #07-0022 and #08-0002 399,000 BB7 1% - 4.5%, due in 2019, OIC #08-0022 57,000 BD7 1.5% - 3.85%, due in 2020, OIC #09-0032 and #09-0133 2,034,000 2,499,000 BE3 1.65% - 4.25%, due in 2021, OIC #08-0043, #09-0032, #09-0133, #10-0022, #10-0066, #10-0071 and #11-00001 5,627,000 6,352,000 BG4 1.65% - 3.8%, due in 2027, OIC #10-0022, #10-0071, #11-0004, #11-0051, #11-0072, #11-0110 and #12-0005 3,386,000 3,881,000 BH7 1.35% - 3.8%, due in 2032, OIC #11-0004, #11-0051 and #11-0110 225,000 260,000 BI3 1.35% - 4%, due in 2033, OIC #11-0051, #11-0072, #12-0024 and #12-0044 1,996,000 2,327,000 BK1 1.15% - 4.15%, due in 2034, OIC #11-0004, #11-0110, #12-0024, #12-0083, #13-0027, #13-0047, #13-0054 and #13-0060 1,780,000 2,094,000 BM3 0.95% - 2.80%, due in 2025, OIC #05-0015, #13-0027, #14-0001 and #14-0026 1,652,000 1,939,000 BO5 1.45% - 2.9%, due in 2026, OIC #15-0023 539,000 634,000 BP4 1.2% - 2.95%, due in 2026, OIC #16-0009 873,000 1,044,000 BQ4 1.2% - 2.7%, due in 2027, OIC #15-0023, #16-0009 1,540,000 1,721,000 BU5 2.55% - 3.7%, due in 2038, OIC #15-0083, #16-0009, #17-0010, #17-0085 5,470,000 5,825,000 BW7 1.95% - 2.45% due in 2029, OIC #18-0016 1,927,000 27,049,000 29,032,000 16 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 9 - DEBENTURES (Continued) 2019 2018 $ $ WATER AND SEWER CAPITAL FUND New Brunswick Municipal Financing Corporation BA4 0.95% - 5%, due in 2019, OIC #07-0022, #07-0071 and #08-0019 304,000 BB8 1% - 4.5%, due in 2019, OIC #08-0019 and #09-0009 48,000 BD8 1.5% - 3.85%, due in 2020, OIC #98-0035, #09-0032 and #09-0133 57,000 112,000 BE4 1.65% - 4.25%, due in 2021, OIC #09-0032, #09-0133, #10-0022 and #10-0071 573,000 846,000 BI4 1.35% - 3.25%, due in 2023, OIC #11-0051 and #11-0086 214,000 264,000 BK2 1.15% - 3.45%, due in 2024, OIC #11-0051, #12-0024 and #13- 0027 695,000 823,000 BL7 1.2% - 2.15%, due in 2019, OIC #02-0029 and #03-0089 27,000 BM4 0.95% - 2.8%, due in 2025, OIC #13-0027 and #14-0026 170,000 202,000 BP6 1.2% - 2.95%, due in 2026, OIC #05-0034, #13-0027, #14-0026 and #15-0023 814,000 987,000 BQ5 1.2% - 1.85%, due in 2022, OIC #14-0026 36,000 48,000 BU6 2.55% - 3.4%, due in 2028, OIC #14-0026, #16-0009 513,000 581,000 BV5 2.05% - 2.3%, due in 2024, OIC #07-0022 161,000 BW8 1.95% - 2.45% due in 2029, OIC #16-0009, #17-0059 and #18- 0016 675,000 3,908,000 4,242,000 17 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 9 - DEBENTURES (Continued) 2019 2018 $ $ ELECTRICAL UTILITY CAPITAL FUND New Brunswick Municipal Financing Corporation BA5 0.95% - 5%, due in 2019, OIC #05-0034, #06-0042, #07-0022 and #08-0019 161,000 BB9 1% - 4.5%, due in 2019, OIC #06-0042 and #08-0019 144,000 BD9 1.5% - 3.85%, due in 2020, OIC #09-0032 and #09-0076 5,264,000 5,702,000 BE5 1.85% - 4.25%, due in 2021, OIC #09-0032, #09-0076, #09-0137 and #10-0022 6,174,000 6,557,000 BG6 1.65% - 3.8%, due in 2027, OIC #09-0076 857,000 909,000 BH9 1.35% - 3.8%, due in 2032, OIC #10-0022, #11-0051 and #12-0006 1,738,000 1,888,000 BI5 1.35% - 3.25%, due in 2023, OIC #11-0001 and #12-0024 26,000 32,000 BK3 1.15% - 3.45%, due in 2024, OIC #11-0051, #12-0024 and #12- 0040 1,068,000 1,265,000 BM5 0.95% - 3.25%, due in 2030, OIC #05-0004, #12-0040 and #13- 0027 2,021,000 2,218,000 BP6 1.2% - 3.55%, due in 2031, OIC #05-0004, #05-0034 and # 16-0070 12,889,000 13,832,000 BQ6 1.2% - 3.3%, due in 2032, OIC #13-0027 1,032,000 1,135,000 BT5 2.1% - 3%, due in 2023, OIC #14-0026 245,000 302,000 BV6 2.05% - 2.85%, due in 2029, OIC #14-0026, #15-0023, #17-0010 and #18-0016 838,000 32,152,000 34,145,000 63,109,000 67,419,000 Approval of the Municipal Capital Borrowing Board has been obtained for the debentures. The estimated instalments on debentures for the next five years are as follows: General Capital Fund Water and Sewer Capital Fund Electrical Utility Capital Fund Total 2020 $ 5,249,000 $ 920,000 $ 7,484,000 $13,653,000 2021 $ 7,359,000 $ 874,000 $ 7,630,000 $15,863,000 2022 $ 2,452,000 $ 505,000 $ 1,872,000 $ 4,829,000 2023 $ 2,084,000 $ 506,000 $ 1,845,000 $ 4,435,000 2024 $ 1,762,000 $ 423,000 $ 1,816,000 $ 4,001,000 18 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 10 - LONG-TERM DEBT 2019 2018 $ $ GENERAL CAPITAL FUND Forgivable loan 180,000 180,000 ELECTRICAL UTILITY CAPITAL FUND Note payable, paid during the year 223,607 223,607 GESTION EDMUNDSTON GOLF MANAGEMENT INC. Note payable, 4.25%, secured by the city of Edmundston, payable in monthly instalments of $2,493, principal and interests, renegotiable in May 2020, maturing in November 2031 309,810 326,209 309,810 326,209 309,810 729,816 The estimated instalments on long-term debt for the next year is $309,810. 11 - OBLIGATIONS UNDER CAPITAL LEASES 2019 2018 $ $ GESTION EDMUNDSTON GOLF MANAGEMENT INC. Obligation under capital lease for equipments with a net carrying amount of $29,606, 6.2%, payable in monthly instalments of $1,637 from May to October annually, principal and interests, maturing in November 2020 9,591 18,137 Obligation under capital lease for equipments with a net carrying amount of $110,819, 4.57%, payable in monthly instalments of $5,629 from May to October annually, principal and interests, maturing in May 2021 32,579 63,704 42,170 81,841 19 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 11 - OBLIGATIONS UNDER CAPITAL LEASES (Continued) The minimum lease payments under the capital leases for the next years and the balance of the obligations are as follows: 2020 $ 43,597 2021 $ 255 Total minimum payments $ 43,852 Interest expenses included in minimum lease payments $ 1,682 $ 42,170 12 - ACCRUED SICK LEAVE The Municipality provides sick leave that accumulates at 1 day per month for management staff and employees of Local 60 and at 2 days per month for directors. Management staff can accumulate a maximum of 260 days of sick leave while employees of Local 60 can accumulate a maximum of 130 days. The Municipality also provides sick leave that accumulates at 10 hours per month for the firefighters of Local 60. As of August 2017, firefighters of local 60 accumulate 10 hours per month. These firefighters can accumulate a maximum of 2,080 hours. The Municipality provide sick leave that accumulates at 12 hours per month for the policeman of Local 558 to a maximum of 2,080 hours. An employee can take a leave with pay for an amount of time equal to the accumulated sick leave. An actuarial valuation was performed on the 189 employees plan in accordance with PSA 3255. The actuarial method used was the Projected Unit Credit pro-rated on service to expected usage. The valuation was based on a number of assumptions about future events, such as interest rates, wage and salary increases and employee turnover and retirement. The assumptions used reflects the Municipality's best estimates. The following summarizes the major assumptions in the valuation:  discount rate of engagement at 5%;  annual salary increase of 3.5%;  mortality age was determined according to the table "CPM 2014 Mortality Table", projected by year of birth using scale B, adjusted according to the size;  leaving age was determined by the rate associated with age;  retirement age was determined by the rates related to age and service, and  number of days of sick leave used per year: ° Management Staff: 6.5 ° Local 60 (blue and white collar): 8.3 ° Local 60 (firefighters) : 7.6 ° Local 558 (policemen) : 7.0 The unfunded liability was $3,525,000 as at December 31, 2019 ($3,525,000 as at December 31, 2018). An amount of $4,528,296 was accounted for in the operating budgets since the year ended December 31, 2012. 20 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 13 - POST EMPLOYMENT BENEFITS PAYABLE Defined benefit pension plan The Municipality sponsors a contributory defined benefit pension plan for substantially all of its employees. The average age of the 192 active employees covered by the plan is 47.1 years. At present, the plan provides benefits for 130 retirees with an average age of 69.5 years. Normal retirement The normal retirement date is the first day of the month coincident with or next following the sixty-fifth (65th) birthday. Early retirement The participant may retire on the first day of any month in the period of ten (10) years before the normal retirement date. The amounts of contributions payable to fund benefits for the service rendered by the participants are determined as follows for employees other than the appointed officers:  Employee contributions: 9% of salary.  Employer contributions: 4.16% of employee earning. In addition, the annual amortization payment in the amount of $811,561 and expenses not related to investments in the amount of $175,000 are paid by the employer. The amounts of contributions payable to fund benefits for the sevice rendered by the officers appointed are determined as follows:  Employer contribution: 20.49% of salary. Total benefits payments to retirees during the year was approximately $3,073,871 ($3,588,001 in 2018). Pension fund assets are invested in Canadian Equity Funds, Fixed Income Funds and Global Equity Funds and short term investments. Actuarial evaluations for accounting purposes are performed annualy using the Projected Benefit Method. The most recent actuarial evaluation was prepared on December 31, 2018 and at that time, the pension plan had an accrued benefit surplus of $5,653,187. The actuarial valuation was based on a number of assumptions about future events, such as inflation rate, interest rates, wage and salary increase and employee turnover and mortality. The assumptions used reflect the Municipality's best estimates. 21 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 13 - POST EMPLOYMENT BENEFITS PAYABLE (Continued) The following summarizes the major assumptions in the valuation:  discount rate of engagement at 6%;  the rate of wage increase was 3.5% (nil for disabled participants);  the rate of increase of the maximum pensionable earning (MPE) is 3%;  the rate of increased in the maximum pension of the Canadian Income Tax Act is 3%;  the expected inflation rate is 2%;  the indexation of pensions for which revaluation is expected is 0.2%, except for pensions in respect of services from Saint-Basile which are indexed at 2% per year  interest rates on salary contribution of 3%. Combined employer and employee contributions during the year were $3,073,871 ($3,020,708 in 2018). Actuaries for the Municipality have not yet done the valuation at the date of the financial statements in order to determine the position of the pension benefits as at December 31, 2019. The statement of financial position of the plan as at December 31, 2018 was as follows: Assets continuity $ 69,758,021 Actuarial liabilities Active and disabled members $ 31,305,302 Retired members and beneficiaries $ 32,688,889 Participants terminated vested $ 110,643 Total actuarial liability $ 64,104,834 Plan surplus $ 5,653,187 14 - CONTINGENCIES In the normal course of operations, the Municipality becomes involved in various claims and legal proceedings. While the final outcome with respect to claims and legal proceedings pending at December 31, 2019 cannot be predicted with certainty, it is the opinion of management and council that resolution of these matters will not have a material adverse effect as the Municipalilty maintains insurance coverage in amounts considered appropriate. Moreover, the Municipality, with the authorization of the Municipality Capital Borrowing Board, has endorsed the line of credit of Gestion Edmundston Golf Management Inc. up to an amount of $512,000 for a maximum of 15 years. The Municipality estimates that the amount it could be called upon to honor is low. 22 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 15 - COMMITMENTS The Municipality has commited itself by contract until 2021 for snow removal services, until 2022 for the garbage and waste collection, until 2021 for the rental of vehicles, until 2024 for the rental of office equipment, until 2023 for a contribution to an organization in order to operate an airport and until 2026 for the rental of security equipment. The future minimum payment for theses commitments is established to $4,008,644. Minimum payments over the next five years are as follows: 2020 - $ 1,415,396 2021 - $ 1,369,443 2022 - $ 950,575 2023 - $ 174,115 2024 - $ 99,115 The commitment for the snow removal services and the garbage and waste collection will be renewable with a mutual agreement between the Municipality and the contractor. The Municipality is committed, according to the agreement signed with the Province of New Brunswick under the ''Infrastructure Program - Canada-New Brunswick'', to contribute to the Water and Sewer Capital Assets Reserve Fund, an annual amount of $25,000 for a minimum period of 25 years ending in 2026, or until the reserve fund reaches the sum of $625,000. 16 - REPORTING TO THE PROVINCE OF NEW BRUNSWICK The Municipality complies with PSAB accounting standards. The Municipality is also required to comply with the Municipal Financial Reporting Manual prescribed by the Province of New Brunswick (''PNB''). Differences in accounting policies include the methodology for accounting of tangible capital assets, government transfers and liability accruals for the pension fund and other retirement benefits. The PSAB also requires full consolidation of funds. Note 25 provides a reconciliation between fund reporting required by PNB and current year-PSAB. 23 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 17 - SHORT-TERM BORROWING COMPLIANCE The Municipality has ministerial authority for short-term borrowing as follows: General Capital Fund: OIC #15-0083 $ 1,500,000 OIC #17-0059 $ 1,778,000 OIC #17-0010 $ 205,000 OIC #18-0016 $ 373,000 OIC #19-0018 $ 8,383,616 $ 12,239,616 Used as bank loans $ 2,132,000 Not used $ 10,107,616 General Operating Fund: Authorized $ 1,000,000 Used $ - Not used $ 1,000,000 Water and Sewer Capital Fund: OIC #18-0016 $ 200,000 OIC #19-0018 $ 945,904 $ 1,145,904 Used as bank loans $ 479,000 Not used $ 666,904 Water and Sewer Operating Fund: Authorized $ 2,000,000 Used $ 1,300,000 Not used $ 700,000 24 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 17 - SHORT-TERM BORROWING COMPLIANCE (Continued) Electrical Utility Capital Fund: OIC #14-0039 $ 300,000 OIC #18-0016 $ 445,000 $ 745,000 Used as bank loans $ 77,000 Not used $ 668,000 Electrical Utility Operating Fund: Authorized $ 4,500,000 Used $ 1,192,000 Not used $ 3,308,000 Operating borrowing As prescribed in the Municipalities Act, borrowing to finance General Fund operations is limited to 4% of the municipality's operating budget. Borrowing to finance Utility Fund operations is limited to 50% of the operating budget for the year. In 2019, the Municipality is in compliance with these restrictions. Interfund borrowing The Municipal Financial Reporting Manual requires that short-term interfund borrowings be repaid in next year unless the borrowing is for a capital project. The amounts payable between Funds are in compliance with the requirements. 18 - WATER AND SEWER FUND SURPLUS/DEFICIT The Municipalities Act requires Water and Sewer Fund surplus/deficit amounts to be absorbed into one or more of three operating budgets commencing with the second next ensuing year. The balance of the surplus at the end of the year consists of: 2019 2018 $ $ 2019 - Surplus 29,909 2018 - Surplus 33,190 33,190 2017 - Surplus 33,244 63,099 66,434 25 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 19 - WATER COST TRANSFER The Municipality's water cost transfer for fire protection is within the maximum allowable by Regulation 81-195 under the Municipalities Act based upon the applicable percentage or water system expenditures for the population. 20 - SUBSEQUENT EVENT Subsequent to year-end, an outbreak of a new strain of coronavirus (COVID-19) resulted in a major global health crisis which continues to have impacts on the global economy and the financial markets at the date of completion of the financial statements. These events are likely to cause significant changes to the assets or liabilities in the coming year or to have a significant impact on future operations. Following these events, the Municipality has taken and will continue to take action to minimize the impact. However, it is impossible to determine the financial implications of these events for the moment. 21 - COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform with the presentation adopted in the current year. 26 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 22 - TANGIBLE CAPITAL ASSETS Land Land improvements Buildings Vehicles Machinery and equipment Water and wastewater facilities Electrical facilities Roads, sidewalks, storm sewers, water and sewer main Assets under construction Total 2019 Total 2018 $ $ $ $ $ $ $ $ $ $ $ Cost Balance, beginning of year 8,315,002 14,287,754 65,350,525 11,370,229 15,214,752 10,727,856 67,112,941 127,054,199 1,249,084 320,682,342 315,947,146 Net additons during the year 102,397 708,434 515,234 1,174,617 1,069,801 378,202 402,341 3,388,699 1,069,371 8,809,096 8,644,526 Disposals during the year (3,570) (572,594) (189,884) (359,961) (1,235,487) (2,361,496) (3,909,330) Balance, end of year 8,417,399 14,992,618 65,865,759 11,972,252 16,094,669 11,106,058 67,515,282 130,082,937 1,082,968 327,129,942 320,682,342 Accumulated Amortization Balance, beginning of year 5,358,509 23,236,418 4,636,011 8,560,806 7,596,883 19,860,723 80,148,085 149,397,435 140,418,950 Amortization during the year 679,257 2,204,520 657,279 1,316,073 292,650 2,265,924 4,080,551 11,496,254 11,084,269 Accumulated amortization on disposals (286) (447,010) (148,883) (341,185) (937,364) (2,105,784) Balance, end of year 6,037,480 25,440,938 4,846,280 9,727,996 7,889,533 22,126,647 83,887,451 159,956,325 149,397,435 Net book value of tangible capital assets 8,417,399 8,955,138 40,424,821 7,125,972 6,366,673 3,216,525 45,388,635 46,195,486 1,082,968 167,173,617 171,284,907 Consists of: General Fund 5,778,111 5,761,079 38,766,278 5,156,002 4,469,161 33,774,045 504,562 94,209,238 95,983,667 Water and Sewer Fund 1,848,197 2,869,303 397,162 589,248 1,009,360 3,216,525 12,421,441 403,459 22,754,695 23,261,283 Electrical Utility Fund 778,691 49,581 1,145,485 1,361,497 597,039 45,388,635 174,947 49,495,875 51,303,361 Reserve Fund 12,400 12,400 12,400 Controlled entities 275,175 115,896 19,225 291,113 701,409 724,196 8,417,399 8,955,138 40,424,821 7,125,972 6,366,673 3,216,525 45,388,635 46,195,486 1,082,968 167,173,617 171,284,907 The buildings include work of arts for an amount of $210,816 (210,816 $ as at December 31, 2018) which are not amortized. 27 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 23 - ASSETS UNDER CAPITAL LEASES 2019 2018 $ $ Cost Balance, beginning and end of year 202,765 202,765 Accumulated Amortization Balance, beginning of year 46,737 29,401 Amortization during the year 15,603 17,336 Balance, end of year 62,340 46,737 140,425 156,028 28 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 24 - SCHEDULE OF SEGMENT DISCLOSURE General government Protective Transportation Environmental health Development Recreational and cultural Water and sewer Electrical utility Reserves Total 2019 Total 2018 $ $ $ $ $ $ $ $ $ $ $ Revenues Property tax warrant * 2,676,888 6,790,172 6,316,665 573,090 1,118,937 6,003,000 23,478,752 22,575,015 Services provided to other governments 762,744 358,867 1,121,611 1,107,630 Sale of services, fines and other revenues 15,000 101,328 2,298,672 850,476 3,265,476 3,287,368 Unconditional grant * 606,167 1,537,597 1,430,374 129,773 253,377 1,359,347 5,316,635 5,261,928 Adjustment for payment in lieu of taxes 430 Other government transfers 1,610 1,100 1,986,518 248,109 104,437 1,793 2,343,567 8,324,643 Other revenues from own sources 47,338 484,185 244,778 18,510 441,070 57,805 1,293,686 1,535,870 Contractors and other organizations contributions 117,474 21,869 139,343 44,000 User fees - Water and sewer services 6,093,927 6,093,927 5,962,333 Sales electrical utility - Distribution 32,754,933 32,754,933 32,247,884 Sales electrical utility - Generation 3,006,386 3,006,386 1,995,159 Interest 214,988 53,238 107,410 375,636 275,444 3,546,991 9,575,798 10,469,676 721,373 1,473,642 10,350,198 6,331,276 36,613,588 107,410 79,189,952 82,617,704 Expenses Salaries and benefits 1,075,560 6,508,401 3,113,186 446,182 2,609,904 1,873,799 3,176,528 18,803,560 16,521,107 Goods and services 1,759,968 1,532,529 2,585,502 871,904 692,259 3,710,440 2,628,624 28,014,181 41,795,407 41,208,215 Amortization 530,054 870,682 3,375,310 305 96,012 2,206,457 1,871,936 2,561,101 11,511,857 11,101,605 Interests 44,490 299,201 348,439 19,311 210,197 135,159 1,166,652 2,223,449 2,306,636 Loss on disposal of tangible capital assets (2,515) (2,655) (5,818) (8,298) 29,315 15,029 25,058 13,486 3,407,557 9,208,158 9,416,619 872,209 1,253,764 8,728,700 6,538,833 34,933,491 74,359,331 71,151,049 Surplus (deficit) for the year 139,434 367,640 1,053,057 (150,836) 219,878 1,621,498 (207,557) 1,680,097 107,410 4,830,621 11,466,655 * For the segment disclosure, the property tax warrant and the unconditional grant are distributed between departments based on the budgeted expenses. 29 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 25 - RECONCILIATION OF ANNUAL SURPLUS (DEFICIT) Genral Operating Fund General Capital Fund Water and Sewer Operating Fund Water and Sewer Capital Fund Electrical Utility Operating Fund Electrical Utility Capital Fund Reserves Controlled entities Total $ $ $ $ $ $ $ $ $ Annual surplus (deficit) 7,860,948 (4,394,640) 1,615,928 (1,823,485) 4,278,878 (2,598,781) 107,410 (215,637) 4,830,621 Adjustments to annual surplus (deficit) for funding requirements Second previous year's surplus 17,370 33,244 39,080 89,694 Transfers between funds From General Operating Fund to Water and Sewer Operating Fund (536,820) 536,820 From General Operating Fund to General Capital Fund (1,323,664) 1,323,664 From Water and Sewer Operating Fund to Water and Sewer Capital Fund (390,392) 390,392 From Electrical Utility Operating Fund to Electrical Utility Capital Fund (633,040) 633,040 From General Operating Fund to General Capital Reserve Fund (59,000) 59,000 From Water and Sewer Operating Fund to Water and Sewer Capital Reserve Fund (600,000) 600,000 From Electrical Utility Operating Fund to Electrical Utility Capital Reserve Fund (393,000) 393,000 Principal payments on long-term debt (3,910,000) 3,910,000 (1,009,000) 1,009,000 (3,054,607) 3,054,607 Provision for accrued retirement (1,535,511) (135,103) (180,840) (1,851,454) Provision for accrued sick leave (195,864) (21,588) (25,529) (242,981) Contributions to controlled entities (285,000) 285,000 Amortization expense 7,078,820 1,871,936 2,561,101 11,511,857 Total adjustments to the annual surplus (deficit) (7,828,489) 12,312,484 (1,586,019) 3,271,328 (4,247,936) 6,248,748 1,052,000 285,000 9,507,116 Annual fund surplus 32,459 7,917,844 29,909 1,447,843 30,942 3,649,967 1,159,410 69,363 14,337,737 30 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 26 - STATEMENT OF RESERVES General Operating General Capital Assets Water and Sewer Operating Water and Sewer Capital Assets Electrical Utility Operating Electrical Utility Capital Assets Total 2019 Total 2018 $ $ $ $ $ $ $ $ Assets Cash 791,833 398,365 185,703 1,772,857 1,386,306 1,109,552 5,644,616 4,484,589 Accounts receivable 3,095 1,432 726 4,731 3,537 5,416 18,937 19,554 Public utility land 12,400 12,400 12,400 Accumulated Surplus 794,928 399,797 186,429 1,789,988 1,389,843 1,114,968 5,675,953 4,516,543 Revenues Interests 19,236 8,321 4,511 23,542 31,778 20,022 107,410 84,988 Interfund transfers 59,000 600,000 393,000 1,052,000 198,320 Annual surplus 19,236 67,321 4,511 623,542 31,778 413,022 1,159,410 283,308 32 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 27 - STATEMENT OF CONTROLLED ENTITIES OPERATIONS Gestion Edmundston Golf Management Inc. Moitié-Moitié Centre Jean-Daigle Inc. Centre des arts La petite église d'Edmundston Inc. Total 2019 Total 2018 $ $ $ $ $ Assets 842,593 30,227 331,050 1,203,870 1,206,642 Liabilities 563,779 26,374 7,933 598,086 670,221 Accumulated surplus 278,814 3,853 323,117 605,784 536,421 Revenues 714,536 355,083 436,471 1,506,090 1,406,775 Expenses 695,123 352,134 389,470 1,436,727 1,398,934 Annual surplus 19,413 2,949 47,001 69,363 7,841 The above noted entities are included in the consolidated financial statements. 33 Edmundston Notes to Consolidated Financial Statements As at December 31, 2019 28 - OPERATING BUDGET TO PSAB BUDGET General Water and Sewer Electrical Utility Amorization of tangible capital assets Controlled Entities Transfers Total $ $ $ $ $ $ $ Revenues Property tax warrant 23,478,752 23,478,752 Services provided to other governments 1,108,213 1,108,213 Sale of services, fines and other revenues 1,297,795 695,497 1,585,311 (346,435) 3,232,168 Unconditional grant 5,181,277 5,181,277 Adjustment for payment in lieu of taxes Other government transfers 147,500 45,145 192,645 Other revenues from own sources 689,130 51,290 740,420 User fees - Water and sewer services 6,628,553 (536,820) 6,091,733 Sales electrical utility - Distribution 31,115,847 31,115,847 Sales electrical utility - Generation 2,821,409 2,821,409 Interest 65,000 36,155 101,155 Second previous year's surplus 17,370 33,244 39,080 (89,694) 31,985,037 6,749,242 34,671,833 1,630,456 (972,949) 74,063,619 Expenses General government services 3,322,415 530,054 161,046 4,013,515 Protective services 9,547,584 870,682 (237,619) 10,180,647 Transportation services 5,746,959 3,375,310 348,439 9,470,708 Environmental health services 858,941 305 859,246 Development services 1,562,322 96,012 19,311 1,677,645 Recreational and cultural services 5,373,622 2,133,434 1,629,606 (136,238) 9,000,424 Water and sewer collection and disposal 4,757,019 1,871,936 203,223 6,832,178 Electrical utility - Distribution 29,294,586 1,597,624 577,404 31,469,614 Electrical utility - Generation 923,911 963,477 613,160 2,500,548 Debt service fees Debentures and long-term debt payments 3,910,000 1,009,000 2,887,772 (7,806,772) Interest, bank fees and debenture fees 1,018,194 168,223 1,145,860 (2,332,277) Discounts and bad debt 20,000 35,000 44,704 (99,704) Transfer from the General Operating Fund to the General Capital Fund 600,000 (600,000) Transfer from the General Operating Fund to the General Operating Reserve Fund 25,000 (25,000) Transfer from the Water and Sewer Operating Fund to the Water and Sewer Capital Fund 730,000 (730,000) Transfer from the Water and Sewer Operating Fund to the Water and Sewer Capital Assets Reserve Fund 50,000 (50,000) Transfer from the Electrical Utility Operating Fund to the Electrical Utility Capital Assets Fund 375,000 (375,000) 31,985,037 6,749,242 34,671,833 11,438,834 1,629,606 (10,470,027) 76,004,525 Annual surplus (deficit) (11,438,834) 850 9,497,078 (1,940,906) 34 Edmundston Consolidated Schedules Year ended December 31, 2019 2019 2018 Budget (Unaudited) Actual Actual $ $ $ SERVICES PROVIDED TO OTHER GOVERNMENTS Province of New Brunswick Fire protection 292,000 298,778 296,126 Police 5,200 5,000 7,640 Transportation 356,000 358,867 358,002 Communication center 455,013 458,966 445,862 1,108,213 1,121,611 1,107,630 SALES OF SERVICES, FINES AND OTHER REVENUES Arenas 185,050 160,993 183,172 Jean-Daigle Centre 564,640 562,283 601,144 Sport Center 302,100 315,389 289,637 Golf 600,250 584,065 550,401 Recreational services 23,500 19,821 6,601 Cultural services 82,505 76,163 82,241 Service charge 45,000 44,958 44,558 Equipment rental 389,074 396,787 390,582 Licenses and permits 125,000 96,733 117,137 Sales and rental of equipment 276,423 428,326 457,861 Moitié-Moitié Centre Jean-Daigle Inc. 379,413 355,083 385,677 Art Center 259,213 224,875 178,357 3,232,168 3,265,476 3,287,368 OTHER REVENUES FROM OWN SOURCES Other revenue 96,450 504,948 727,883 Other revenue - Police 386,380 433,930 425,482 Other revenue - Water and sewer services 20,300 32,255 30,599 Transportation department 175,000 215,232 287,175 Building rental 20,700 24,649 23,545 Administrative services 5,000 8,433 10,391 Wastewater treatment plant 30,990 25,550 19,163 Technical services 5,600 48,689 11,632 740,420 1,293,686 1,535,870 35 Edmundston Consolidated Schedules Year ended December 31, 2019 2019 2018 Budget (Unaudited) Actual Actual $ $ $ GENERAL GOVERNMENT SERVICES Legislative Mayor 35,309 28,965 25,716 Councillors 105,104 94,888 79,832 Other legislative fees 81,490 55,333 59,859 221,903 179,186 165,407 Administrative Administration 416,829 332,506 273,470 City Clerk 51,934 32,389 28,731 Treasurer 679,375 731,975 621,521 Tourism 156,500 156,428 156,427 Human resources 490,002 457,496 359,598 Office building 984,782 968,681 990,563 Data processing 252,488 217,602 203,584 Legal fees (recovery) 2,602 (1,819) (922) Secrétariat à la Jeunesse 66,000 65,811 66,364 Sick leave and post employment benefits (322,764) (558,034) Amortization 530,054 530,054 522,224 Debenture fees 20,000 14,945 53,957 Long-term debt interest 121,046 44,490 159,831 Bad debts 20,000 3,092 3,791,612 3,230,886 2,877,314 4,013,515 3,410,072 3,042,721 36 Edmundston Consolidated Schedules Year ended December 31, 2019 2019 2018 Budget (Unaudited) Actual Actual $ $ $ PROTECTIVE SERVICES 911 Center 1,062,620 1,171,091 1,040,391 Police Administration 687,860 770,996 619,823 Crime prevention 4,003,064 3,798,664 3,722,097 Traffic activities 61,991 59,458 62,561 Station and building 458,717 468,062 486,952 Vehicles 251,010 198,159 233,213 Animal control 16,000 16,510 10,461 Jailer 33,284 29,365 32,651 Emergency measures service 9,385 1,560 6,210 Sick leave and post employment benefits (568,438) (1,012,449) Long-term debt interest 261,755 261,755 292,919 Amortization 603,170 603,170 626,887 6,386,236 5,639,261 5,081,325 Fire Administration 471,891 375,808 462,845 Fire fighting force 1,425,154 1,428,661 1,429,392 Brigade 153,700 125,010 137,061 Prevention 122,152 120,901 111,738 Station and building 123,536 128,083 129,716 Vehicles 130,400 100,708 145,616 Sick leave and post employment benefits (183,668) (358,481) Amortization 267,512 267,512 227,133 Long-term debt interest 37,446 37,446 33,508 2,731,791 2,400,461 2,318,528 10,180,647 9,210,813 8,440,244 37 Edmundston Consolidated Schedules Year ended December 31, 2019 2019 2018 Budget (Unaudited) Actual Actual $ $ $ TRANSPORTATION SERVICES Administation - Road transport 595,643 806,572 785,664 Street maintenance - Summer 2,070,874 2,036,582 1,845,472 Street maintenance - Winter 1,625,880 1,959,661 1,988,259 Landscaping 423,544 302,805 366,408 Sidewalks 27,135 1,355 10,642 Storm sewers 245,372 145,729 145,089 Street lighting 481,632 519,548 490,164 Traffic 194,383 150,959 151,116 Parking 74,027 73,532 74,296 Other 8,469 24,154 36,829 Sick leave and post employment benefits (322,209) (669,672) Amortization 3,375,310 3,375,310 3,229,191 Long-term debt interest 348,439 348,439 305,351 9,470,708 9,422,437 8,758,809 ENVIRONMENTAL HEALTH SERVICES Garbage and waste collection 858,941 871,904 782,740 Amortization 305 305 305 859,246 872,209 783,045 DEVELOPMENT SERVICES Economic development 371,452 337,028 246,437 Engineering 258,146 186,058 404,276 Building inspectors 374,384 337,118 392,224 Environmental sustainability 65,707 (50,977) 78,815 Planning department 134,719 93,857 146,541 Communication towers 3,599 14,734 7,743 Urban development 135,485 104,377 128,724 Airports 165,830 156,094 158,510 Urban commission 53,000 52,985 58,460 Sick leave and post employment benefits (92,833) (254,389) Amortization 96,012 96,012 84,590 Long-term debt interest 19,311 19,311 16,360 1,677,645 1,253,764 1,468,291 38 Edmundston Consolidated Schedules Year ended December 31, 2019 2019 2018 Budget (Unaudited) Actual Actual $ $ $ RECREATIONAL AND CULTURAL SERVICES Recreational Administration 671,162 666,561 654,716 Sports 1,272,254 1,269,020 1,242,864 Arenas 520,383 562,543 607,948 Jean-Daigle Centre 1,106,311 1,125,998 1,208,650 Parks and playgrounds 882,657 904,398 801,927 Golf 666,347 660,316 606,115 Moitié-Moitié Centre Jean-Daigle Inc. 379,413 352,134 384,773 Sick leave and post employment benefits (241,463) (411,502) Amortization 2,206,934 2,206,457 2,183,880 Long-term debt interest 210,197 210,197 138,710 7,915,658 7,716,161 7,418,081 Cultural Sociocultural 396,293 464,593 319,853 Library 163,680 176,772 183,053 Art Center 524,793 379,472 345,883 1,084,766 1,020,837 848,789 9,000,424 8,736,998 8,266,870 39 Edmundston Consolidated Schedules Year ended December 31, 2019 2019 2018 Budget (Unaudited) Actual Actual $ $ $ WATER AND SEWER COLLECTION AND DISPOSAL Water supply Administration 604,554 598,665 596,275 Billing and collection 127,193 127,193 123,612 Power and pumping 440,562 401,233 383,499 Purification and treatment 155,516 106,729 89,815 Transmission and distribution 1,603,053 1,596,715 1,568,723 Sick leave and post employment benefits (128,578) (247,461) Amortization 959,667 959,667 950,529 Bank fees 8,000 16,818 12,232 Short-term debt interest 12,285 4,793 10,244 Debenture fees 9,508 3,247 490 Long-term debt interest 64,861 64,773 70,645 Discounts 32,000 38,879 36,097 Bad debts 2,000 5,511 25,047 4,019,199 3,795,645 3,619,747 Sewer collection and disposal Administration 398,264 398,264 396,160 Billing and collection 84,796 84,796 82,408 Wastewater treatment plant 365,587 347,924 331,688 Sewage collection system 620,990 565,354 541,800 Lift-station 356,504 349,556 301,399 Pre-treatment 571 329 Sick leave and post employment benefits (28,113) (61,495) Amortization 912,269 912,269 906,921 Bank fees 5,000 11,212 8,155 Short-term debt interest 9,774 12,632 6,829 Debenture fees 6,392 2,772 3,772 Long-term debt interest 52,403 52,962 60,626 Bad debts 1,000 3,674 16,698 2,812,979 2,713,873 2,595,290 6,832,178 6,509,518 6,215,037 40 Edmundston Consolidated Schedules Year ended December 31, 2019 2019 2018 Budget (Unaudited) Actual Actual $ $ $ ELECTRICAL UTILITY Electrical utility - Distribution Electrical energy purchase 24,604,718 25,804,120 25,560,439 Administration 352,852 230,076 293,713 Distribution 1,874,128 1,972,239 1,859,822 Management expenses 1,965,558 1,966,734 1,997,251 Management and planning 114,191 120,672 127,933 Electrometry 383,139 232,984 225,846 Sick leave and post employment benefits (141,973) (278,857) Amortization 1,597,624 1,597,624 1,585,363 Short-term debt interest 30,000 48,905 40,605 Debenture fees 5,490 5,601 1,808 Long-term debt interest 497,210 510,179 526,332 Bad debts 44,704 43,495 3,522 31,469,614 32,390,656 31,943,777 Electrical utility - Generation Administration 42,980 27,806 27,808 Management expenses 234,633 234,633 243,386 Management and planning 72,793 101,906 100,932 Operations 518,935 633,318 500,481 Electrometry 6,596 6,596 6,696 Lines 47,974 15,910 16,728 Sick leave and post employment benefits (64,396) (106,519) Amortization 963,477 963,477 784,582 Short-term debt interest 11,994 7,215 5,663 Debenture fees 988 Long-term debt interest 601,166 600,353 639,012 2,500,548 2,527,806 2,218,769 33,970,162 34,918,462 34,162,546 Edmundston – 2019 Annual Report Page 72 APPENDIX B 2019 Audited Financial Statements – Centre des arts La Petite Église inc. Edmundston – 2019 Annual Report Page 87 APPENDIX C 2019 Audited Financial Statements – Gestion Edmundston Golf Management inc. Edmundston – 2019 Annual Report Page 105 APPENDIX D 2019 Audited Financial Statements – Moitié-moitié Centre Jean-Daigle inc.