TABER IRRIGATION DISTRICT 2019
Transcript of TABER IRRIGATION DISTRICT 2019
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TABER IRRIGATION DISTRICT2019
101st Annual Report and Financial Statement
ANNUAL MEETINGWednesday, March 25th, 2020, 1:30 p.m.
at the Heritage Inn, Taber, Alberta
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TID Vision Our vision is a progressive and cohesive team, supporting the diverse needs of our
water users through a heritage of efficient operations, a drive for continuous improvement, and a spirit of collaboration toward responsible water management
within Specialty Crop Country
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TID Mission Statement Our mission is to provide sufficient, quality water to our rate payers through collaborative planning, regular upgrading, proactive maintenance and cost-effective operation, enabled by an informed board and dedicated staff using
sustainable management practices
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ANNUAL MEETING NOTICE Take note that the annual meeting of the Irrigators of the Taber Irrigation District will be held at the Heritage Inn in Taber on the 25th day of March 2020 beginning at 1:30 o’clock in the p.m. to: (a) present annual reports of: (i) the chair on behalf of the Board, (ii) the manager, (iii) the auditor of the District, and (iv) the maintenance of irrigation works for the District, and (b) conduct any other business.
NOMINATION and ELECTION NOTICE As advertised in the Taber Times, nominations were received until 4:00 p.m., Wednesday, February 26th, 2020 for the following: two Directors on the District Board of Directors for Electoral Division #1 (Cranford – Barnwell) and Electoral Division #5 (East Horsefly – North Fincastle). Nominations were in the form prescribed by the Act, and forms were obtained at the T.I.D. General Office in Taber. All nomination papers were signed by at least two Irrigators who have irrigation acres within the District and were returned to the District Manager before the date and time mentioned. Further take notice that should more than one nomination from an electoral division be received before 4:00 p.m., February 26th, 2020, an election will be held on the date of the annual meeting, Wednesday, March 25th, 2020 and the polling place shall be the Heritage Inn in Taber and the polling booths shall be open from 10:00 a.m. until 8:00 p.m. Also, there will be an advance poll held on Friday, March 20th, 2020 at the Taber Irrigation District office from 8:30a.m. to 4:00 p.m. Christopher W. Gallagher, District Manager and Returning Officer Elections by Electoral Division The Board of Directors passed a bylaw providing for the election of members of the board by vote of the irrigators in the respective electoral divisions. An irrigator must vote in the electoral division in which the irrigator has the largest number of irrigation acres. (See map on the inside cover page)
BOARD of DIRECTORS
Don Johnson (Term Expiring) - Electoral Division #1 - Cranford – Barnwell Bruce Francis - Electoral Division #2 - Barnwell East – Taber Paul Turcato - Electoral Division #3 - Taber East – Fincastle Kyle Gouw - Electoral Division #4 - Taber Big Bend Mike Wind, Chairman (Term Expiring) - Electoral Division #5 - East Horsefly & North Fincastle
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Organization of the Board of Directors at December 31, 2019
Mike Wind - Chair Bruce Francis - Director Paul Turcato - Director Kyle Gouw - Vice-Chair Don Johnson - Director
Special Committees
A.I.D.A. Directors - Don Johnson – Executive Member - Paul Turcato
Main Canal (Common Carrier) - Mike Wind Advisory Committee - Chris Gallagher
Irrican Power - Mike Wind - Vice-Chair of the Board - Chris Gallagher - Assistant Manager
Meetings of the Board During 2019
11 - Regular Meetings 1 - Irrican Power Annual Meeting
1 - Visioning Retreat 2 - Special Board Meeting 1 - T.I.D. Annual Meeting 1 - A.I.D.A. Annual Meeting
Taber Irrigation District Staff in 2019
District Manager - Christopher W. Gallagher Office Manager - Brenda Pyrch Admin. Assistant/Land Tech - Kyla Ross District Engineer - Tony Wikkerink Engineering Tech - Dylan Fletcher
- Jason Sheppard District Superintendent - Barry Jensen Construction Foreman - Fred Williams Maintenance Technician - Casey Sims Maintenance Operator - Devin Collett Water Supervisors (Ditchriders) - Richard Oliver
- David Bennett - Jack Rop - Randy Sparks - John Beers
Equipment Operator - Paul Eirich Seasonal Operators/Labourers - Mas Nishima
- Lionel Dyck - Brenden Friesen - Harold Sims
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TOTAL T.I.D. ASSESSMENT ROLL ACREAGE Based on 2019 Irrigation Season
“Irrigation Acres” (Permanent Agreements) 87,614 Acres subject to Terminable Agreements 623 Acres subject to Annual Agreements 148 TOTAL ON ASSESSMENT ROLL 88,385
Rural Water Use Agreements (Est. 3 ac-ft of water use/agreement) 397 Household Purposes Agreements (Est. 1 ac-ft of water use/agreement) 108
Water licensed to Taber Irrigation District = 158,000 ac-ft Water licensed to others and conveyed by TID = 9,286 ac-ft
Water Diversions, Acres and Return 5 Year
2015 2016 2017 2018 2019 Average * Other Water Use (Ac-ft)
Johnson's Addition 6 12 9 9
Town of Taber 2,720 2,464 2,828 2,718 2,621 2,670.2
Village of Barnwell 104 84 111 84 77 92.0
Lamb-Weston 1,508 1,600 1,477 1,598 1,634 1,563.4
Lantic Inc. (Rogers Sugar) 461 606 632 693 246 527.6
CNRL 74 74 74 74 74 74.0
Riverbend 82 82 82 82 82 82.0
Livestock 491 491 491 500 500 494.6
Rural 1,065 1,092 1,128 1,146 1,191 1,124.4
Household 100 76 87 89 108 92.0
Other 14 21 16 17 21 17.8
Total Other Water Use 6,619 6,596 6,938 7,010 6,563 6,745.2
Irrigation Water Use (Ac-ft) 93,862 77,717 116,985 98,342 96,337 96,648.4
Gross Diversion (Ac-ft) 100,481 84,313 123,923 105,352 102,900 103,393.6 Assessed Acres 83,600 84,045 84,431 85,620 88,385
Acres Irrigated 77,123 77,801 77,996 81,382 84,110 79,682.4
** Water Use (Ac-ft) 1.22 1.00 1.50 1.21 1.15 1.21
Return Flow (Ac-ft) 18,699 16,410 17,023 14,541 12,424 15,819.6 * Water volumes are measured or calculated from Oct. 31 of the previous year to Oct. 31 of the year shown, except for Lantic Inc.,
which is from Sep. 1 to Sep. 1. ** Irrigation Water Use per acre irrigated Note: Return flow volumes are significantly affected by rain and other events during the season in three ways: 1. by runoff water that gets into the distribution and return flow channels 2. by increased irrigation water return flows due to the lag time required to adjust the diversions because of the rain event 3. by water conveyed in cooperation with SMRID to attenuate excess Main Canal flows and accommodate draw down volumes
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Rainfall Record over the Growing Season for the Past 10 Years (inches)10 Year
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 AverageApril 2.88 2.09 1.49 0.87 1.02 0.70 1.33 0.69 0.67 0.10 1.18May 4.49 2.41 2.36 1.83 1.54 0.43 1.86 1.47 1.08 1.10 1.86June 3.18 3.70 5.68 3.10 3.98 1.44 2.97 2.49 1.66 0.90 2.91July 0.60 0.77 2.24 3.39 0.86 1.33 1.39 0.04 0.55 1.20 1.24August 1.59 0.23 0.85 0.77 1.84 0.55 1.42 0.49 0.74 0.90 0.94Sept. 1.85 0.26 0.11 2.75 2.82 2.07 1.47 0.17 0.83 2.20 1.45October 0.32 2.34 1.57 1.14 0.52 0.44 0.724 1.75 0.41 0.3 0.95TOTAL 14.91 11.80 14.30 13.85 12.58 6.96 11.16 7.10 5.93 6.70 10.53
Average Maximum Temperature over the Growing Season for the Past 10 Years (°C)10 Year
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 AverageApril 11.9 9.0 14.0 10.6 12.9 15.2 12.7 13.6 12.8 14.7 12.74May 14.3 16.1 17.4 20.5 18.1 18.6 18.4 22.0 18.5 17.5 18.14June 20.5 20.2 21.4 22.3 20.4 26.2 22.5 23.9 22.6 24.0 22.40July 24.8 25.7 27.6 25.8 28.0 27.3 26.3 31.0 26.3 27.4 27.02August 23.6 26.4 27.4 27.4 25.9 27.6 25.9 28.3 25.9 25.7 26.41Sept. 16.8 24.5 23.8 23.3 20.4 20.6 20.3 22.2 20.3 19.0 21.11October 15.7 14.2 9.4 12.8 17.4 17.0 13.9 12.6 13.8 9.6 13.647 monthaverage 18.23 19.44 20.14 20.39 20.44 21.79 20.00 21.93 20.04 19.71 20.21
Average Minimum Temperature over the Growing Season for the Past 10 Years (°C)10 Year
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 AverageApril -0.1 -0.5 0.6 -3.0 -0.5 -0.1 -1.0 -0.3 -0.9 -0.1 -0.59May 3.3 4.5 4.8 6.0 4.7 3.4 4.5 6.5 4.5 3.9 4.61June 9.3 9.7 9.8 9.3 8.6 9.7 9.0 10.0 9.0 8.8 9.32July 11.0 10.8 12.9 11.4 11.9 10.9 11.0 11.3 11.0 10.3 11.26August 9.6 10.8 10.2 11.2 11.4 10.4 10.1 9.8 10.0 10.4 10.39Sept. 5.7 7.6 6.3 8.4 5.5 5.6 5.2 5.8 5.2 6.5 6.19October 1.7 1.3 -0.9 -0.1 2.7 1.2 0.2 -0.1 0.1 -3.6 0.257 monthaverage 5.79 6.31 6.24 6.17 6.33 5.87 5.57 6.14 5.59 5.15 5.92
2019 Source of Data: Alberta Agriculture, Fincastle Station
Number of days during growing season, free of killing frost (not below 28.4F or -2C): 149 days in 2019First safe day - May 5th, 2019 First killing frost - September 30th, 2019
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RECAP of DITCHRIDERS CROP REPORTS for 2019Irrigated Acres Not Total Percent
Crops Acres Irrigated Acres of TotalBarley 3,871 26 3,897 4.63%Grain Corn 1,338 1,338 1.59%Durum Wheat 1,374 35 1,409 1.68%Hard Spring Wheat 16,475 105 16,580 19.71%Oats 295 30 325 0.39%Soft Wheat 1,637 40 1,677 1.99%Winter Wheat 879 879 1.05%
Sub-Tota l of Cereals 25,869 236 26,105 31.04%Alfalfa Hay 4,288 30 4,318 5.13%Alfalfa 2 Cut 243 64 307 0.36%Alfalfa 3 Cut 2,171 185 2,356 2.80%Alfalfa Silage 81 81 0.10%Barley Silage 809 148 957 1.14%Barley Silage Underseeded 115 115 0.14%Corn - Si lage 6,680 6,680 7.94%Grass Hay 512 131 643 0.76%Green Feed 1,059 58 1,117 1.33%Native Pasture 18 327 345 0.41%Sorghum Sudan Grass 10 10Tame Pasture 2,916 912 3,828 4.55%Timothy Hay 3,491 3,491 4.15%
Sub-Tota l of Forages 22,393 1,855 24,248 28.83%Canola 1,992 1,992 2.37%Flax 380 380 0.45%
Sub-Tota l of Oi l Seeds 2,372 0 2,372 2.82%Beans Dry/Green 4,688 4,688 5.57%Canola Seed 2,932 2,932 3.49%Alfalfa Seed 65 65 0.08%Hemp 43 43 0.05%Peas - Dry 459 10 469 0.56%Peas - Fresh 2,488 2,488 2.96%Fresh Corn - Sweet 1,843 66 1,909 2.27%Market Gardens 33 10 43 0.05%Nursery 12 12 0.01%Onions 781 781 0.93%Potatoes 11,241 244 11,485 13.65%Pumpkins 88 88 0.10%Seed Potatoes 216 216 0.26%Soybeans 130 130 0.15%Sugar Beets 4,908 4,908 5.84%Sunflower 678 678 0.81%Turf Sod 84 84 0.10%
Sub-Tota l of Specia l ty Crops 30,689 330 31,019 36.88%Misc.-lawns, parks, etc. 113 71 184 0.22%Non Crop/Unknown 132 10 142 0.17%Summer Fallow 40 40 0.05%Assessed w/o System 0 0.00%
Sub-Tota l of Miscel laneous 285 81 366 0.44%Total 81,608 2,502 84,110 100.00%
Percent of Total 97.03% 2.97% 100.00%
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Number of Irrigated PerCentSystems Area (ac.) of Total
Gravity - Developed - No Control 11 317 0.38%Gravity - Developed - Controlled 14 438 0.52%Gravity - Undeveloped - Flood 20 994 1.18%
Sub-total of Gravity Irrigation 45 1,749 2.08%Sprinkler - Micro-Spray 4 90 0.11%Sprinkler - Hand-Move 10 69 0.08%Sprinkler - Linear - Hi pressure 1 84 0.10%Sprinkler - Linear - Lo Pressure 3 232 0.28%Sprinkler - Pivot Hi Pressure 69 8,167 9.70%Sprinkler - Pivot Hi Pressure - Corner 7 1,087 1.29%Sprinkler - Pivot Lo Pressure 401 44,034 52.28%Sprinkler - Pivot Lo Pressure - Corner 151 21,425 25.44%Sprinkler - Volume Gun - Stationary 2 37 0.04%Sprinkler - Volume Gun - Traveller 1 22 0.03%Sprinkler - Wheel-Move (2 Lats.) 121 6,756 8.02%Sprinkler - Wheel-Move (4 Lats.) 24 472 0.56%
Sub-total of Sprinkler Irrigation 794 82,475 97.92%
Total of Irrigation Method 839 84,224 100.00%
Number of Irrigated PerCentSystems Area (ac.) of Total
Diesel 8 726 0.86%Electricity 489 55,237 65.58%Energy Type Unknown 2 31 0.04%Gasoline 1 20 0.02%Gravity 46 2,298 2.73%Gravity Pressure Pipe 12 407 0.48% L.P.G. (Propane or Butane) 2 170 0.20%Natural Gas 279 25,335 30.08%
Total of Energy Type 839 84,224 100.00%
* The information within these tables are based on the best available information. Supporting data may be incomplete due to technical issues with the DDIT system.
Irrigation Method
Energy Type
Assessed Acres with no Irrigation System - 2156 acres
IRRIGATION METHOD SUMMARY 2019
ENERGY TYPE SUMMARY 2019
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CHAIRMAN’S REPORT
There is never a dull irrigation season in the irrigation business. 2019 was no exception with reservoirs fairly full to start the year but due to a hot summer everything was nearly empty by year end. As water orders eased off with some late summer rain, a decision was made to shut off water a little early to keep enough water for startup next spring. Since then we’ve had some good snowfall events to get our reservoirs to good levels for the winter. It looks like a promising year ahead, unless the wheels fall off somewhere along the way.
We continue to plow ahead in modernizing our works in an effort to deliver clean water and saving water whenever possible. We use longer-term planning to try and balance water quality and water security goals using current and emerging technologies.
As a board we are appreciative of the rate payers who work with TID staff when improvements are being made in or around their land. Even though it might not appear beneficial to your farm, it is good for the whole district and contributes to overall water security.
As government funding slowly decreases, we as a board wonder where future capital is going to come from to continue rehabilitating the district. While we look at other funding programs and sources of revenue to help fill the gap, we also ask ourselves if perhaps we should be charging a fee per acre to be set aside for future projects. Your input would be valuable to us on this subject.
We are excited about the future in seeing not only what irrigation is doing, but what is coming with various specialty crops being developed for our area. We will continue working with our neighbouring districts in building TID to deliver clean water in a sustainable fashion.
I would like to acknowledge the legacy of our long-time board member and chairman Keith Francis. He will be remembered as a staunch advocate of increased storage and supporter of all water users.
As we say goodbye to Tony Machacek and thank him for his 18 years of service, we welcome Paul Turcato as he starts his journey here at TID.
Congratulations to this year’s scholarship recipients, Ace Wenbourne, Lauren Steed, Kristen Boeve, Lauren Gouw and Ty Anderson. Best of luck in your future endeavours. Management and staff continue to work hard for our district, for which we are grateful. Let’s hope for a good growing summer and a longer fall.
Respectfully submitted,
Mike Wind, Chair
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MANAGER’S REPORT
With winter carryover in St. Mary Development reservoirs gaining over 2017, we were hopeful that the improved water supply ending the 2018 season would place us in a good situation for 2019. It turns out we needed this saved water to get started as the snowpack was the lowest seen in some time. Allocations started at 12” anticipating a conservative 90th percentile dry year. With precipitation only somewhat below normal TID and our partners at SMRID and RID gradually raised our respective allocations over the spring and early summer as Alberta Agriculture and Forestry analyses showed the water was there. Many thanks for the good work of the Water Management Operations group at Alberta Environment for maximizing the capacity available in the headworks canals to capture and convey as much of the available yield from the Waterton catchments as possible to St. Mary Reservoir. We hope that as the Government of Alberta considers our future water security, they consider enlargement of the Waterton to Belly and Belly to St. Mary reaches in their evaluation of storage enhancement opportunities. Future climate scenarios are converging to show a higher proportion of precipitation coming as rain vs. snow and, along with continuation of our Conservation-Efficiency-Productivity plan, we will need to offset the reduced natural storage in the snowpack with artificial storage such as reservoirs.
Speaking of storage, this initiative was central in the visionary thinking of our 46-year board member and long-time chairman Keith Francis, who passed away this year. Much of the progress we see today in the Taber Irrigation District, Irrican and in government recognition of the value of the irrigation sector as a whole, would not have been so fruitful without the efforts of Keith. I will try to always keep in mind the key lesson he drove home to me to look at all work in the district as service and to view our decisions and actions through the lens of what is best for the water user. You will be missed – your legacy endures.
The water delivery season was another busy one for our ditchriders as sustained dry conditions meant steady water orders. On August 6th we were hit that Tuesday evening with a brutal wind and hailstorm that wiped out many crops in the Barnwell area. Ditchriders became counsellors for a time as we all took a collective pause to grieve and assess the impacts. A welcome reprieve in water orders with late season cooling and precipitation was rudely interrupted. A temperature plunge to -10C in late September added insult to injury as our operations group nursed our systems through to shutdown while sugar beet growers saw approximately half of production unsalvageable. The resilience of our ditchriders and our water users showed a commitment and dedication that I have never seen. We do not see behind the scenes of a ditchrider’s day-to-day work and although I cannot put myself in their shoes, I have a new appreciation for what they do. Job well done.
TID has continued in 2019 to invest significant effort in maintenance to improve our existing works and manage our risks. Improving our irrigation works through rehabilitation and stewardship initiatives should not happen at the expense of allowing a maintenance deficit to grow. We continued to provide our operations staff with time to assess the condition of works in their areas, and conduct routine maintenance of valves, gates, screens and other wear items. Maintenance lists for larger repairs have become integral to our construction season planning and prioritized so that the engineering and operation groups work together. See the O&M Report and Engineer’s Report for details. The addition of full-time maintenance and operation technicians bolster the capable TID crews that help keep our systems running smoothly. The trend toward full readiness planning for startup has continued and will be formalized in policy next year. The continued significant reduction in IRP funding means TID has implemented integrated long-term budgeting of IRP and district-funded capital projects.
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Additionally, we continue to access other funding programs such as the Watershed Resilience and Restoration Program and Canadian Agricultural Partnership, while partnering with Alberta Agriculture and Forestry’s Water Quality Section, Alberta Conservation Association, Oldman Watershed Council, MD of Taber, Town of Taber and Lantic on water stewardship initiatives. We expect to formalize planning through a formal Asset Management program that includes systematic irrigation works condition evaluation, risk analysis, and full cost accounting.
This will allow us to better plan maintenance and rehabilitation activities and determine the required long-term budget.
SMRID, TID and RID executed the Forty Mile Pump Station Cost Sharing Agreement detailed in the 2018 report. This project will improve water security for all three districts and includes development and implementation of predictive modelling to test reservoir routing decisions in advance. This decision support tool will assist in optimizing the location of water in the system to where it is needed while minimizing spillway flows and volumes. TID continues to work with our neighbours individually, locally, and through the Alberta Irrigation Districts Association, to share ideas and pursue synergies.
The district continued to have approximately 1,500 irrigation acres available for intensification of existing TID parcels in 2019. This year saw several requests for changes that led to challenges in our lands department. Please try to plan any changes to your irrigation operations well in advance so we can respond effectively and ensure all the required steps are completed in order and on time.
We said farewell to Alan Anderson as he pursues his personal goals full-time. Richard Oliver moved closer to home as he took over Alan’s area. We are pleased to welcome John Beers who brings a calm demeanor to his ditchrider area in the northeast, and welding knowledge and skill in the fabrication shop. Thanks to all of the TID staff as you work together in a spirit of collaboration and a desire to contribute to the success of our water users.
A big thank-you goes out to Tony Machacek for his 18 years of service with the TID board, capping his time here as Chair. You helped me significantly as I learned the ropes here and I am grateful. Tony cares deeply for the welfare of TID and ensured a strong handoff to his successor Paul Turcato. We welcome Paul and trust that your keen interest in TID business will help TID continue to thrive.
To our water users, I appreciate your participation in growing and improving your district. We are a farmer-owned cooperative and we all contribute our part to its success. Sometimes we don’t always get what we want, but we strive for fairness under the rules intended to guide us all. Your representatives on the board set our course, so please advise them in this. After a tough 2019 for many, we look forward to becoming stronger in 2020 as a result.
Respectfully submitted,
Christopher W. Gallagher, P.Eng. District Manager
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IRRICAN POWER
With a drier than average year Irrican saw above average generation at the Chin, Raymond and Drops 4,5,6 plants. Operation went well overall, with some interruptions at Drops 4,5,6 that created some challenges with AESO reporting and restarting. The likely cause of these nuisance trips is hopefully now identified and will be addressed through FortisAlberta substation upgrades and Telus repairs to their line.
Revenue of $7.94M was down $660k from our record in 2018, but still healthy due to good generation, an average balancing pool price near $50/MWh, hedging contracts approaching $70/MWh, and significant improvement in Renewable Energy Credit (REC) prices. Power Purchase Agreements are still not viable due to ongoing instability in forward pricing of brown power, so we continue to sell to the balancing pool. Irrican continued our engagement with Urica for energy consulting services to enhance brown power revenue through hedging and with dispatch coordination with AESO. Irrican has diversified our REC customer base and customized portfolios to meet their needs while maximizing revenue. A combination of fixed and variable (full generation/residual) over varying timelines helped mitigate risk while being responsive to the changing green power environment. There is some uncertainty with pricing going forward, but we want to be ready to take advantage should it follow the federal carbon pricing model.
The maintenance program continues to work well as staff improve their knowledge and qualifications. Condition evaluations show the plants are being well looked after. Manual operation at hydraulic gradient extremes at Chin has mitigated the risk of cavitation, and the fall inspection showed this was successful. The current vulnerability we have rests with the aging control systems and staged dropping of technical support from the supplier. Although we have backup cards for all plants, Chin and Raymond controls are no longer supported and so the directors approved $2M to replace these over 2020-2021. Funds will be drawn from the reserve started in 2018 and supported by surplus from 2019.
In 2019 Irrican decided to add to our hydropower foundation and wade into solar offset generation. Irrican directors approved us being the proud owner of the Forty Mile Solar Project once Enmax completes commissioning in 2020. The 7-acre photovoltaic array is sized to offset the electricity used to pump out of Forty Mile Reservoir that supplements SMRID main canal downstream flows. Irrican will continue to bill SMRID for the power. The combination of grants, financing payments, reduced electricity from the grid and sales to the grid is near neutral for about 15 years, after which the benefits will be shared with the Irrican partners. Similar projects are on the horizon.
Irrican is achieving its goal to pay out this investment to farmers. The districts are in the second year of receiving payments from the Due to Districts loan that include interest revenue generated since inception and until paid in full. No money was ever received from farmers, just faith that this vision would be fulfilled.
Respectfully submitted, Chris Gallagher, P.Eng. Assistant Manager, Irrican
Power generation and revenues for 2019, along with historical numbers, are shown in the following table:
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Irrican Power Plants Raymond Chin Drops 4,5,6 Combined
Rated Generation Capacity (MW) 20 11 7 38 Projected Annual Generation (MWh) 60,000 40,000 22,000 122,000 Cost of Plants ($Million) 26.81 17.84 14.84 59.49 Operating Head Range (metres) 44 37 - 45 15 Flow Range (cfs) 400-2000 400-1100 400-1800 Generation for 2019 (MWh) 56,369 36,035 18,988 111,392 % of Total Generation 50.6 32.3 17.0 100.0 Revenue for 2019 ($000) 3,294 1,870 978 6,142 % of Total Revenue 53.6 30.5 15.9 100.0 Average Price per MWh ($) 51.91 51.90 51.49 51.38
Year 1
Generation (MWh)
Contract Price for Electricity
Raymond/Chin ($/MWh)
Average Price for Excess Energy
(based on Drops 4,5,6) ($/MWh)
Gross Revenue (generation)
($Million)
Net Income
(Loss) ($000)
Retained Earnings (Deficit) ($000)
1994 83,607 53.30 12.00 4.364 -212 -212 1995 95,927 54.10 12.00 5.182 -1071 -1283 1996 104,760 55.30 12.00 5.627 -84 -1368 1997 103,375 56.60 20.21 5.740 535 -833 1998 101,917 57.80 36.02 5.862 -171 -1003 1999 103,724 58.40 46.19 6.037 77 -927 2000 101,788 59.80 123.06 6.325 173 -754 2001 78,100 61.90 55.59 4.817 -1041 -1795 2002 92,927 63.30 37.58 5.830 77 -1718 2003 92,298 65.50 62.91 6.034 406 -1313
2004 2 106,464 65.50 54.56 6.843 896 -416 2005 88,230 65.50 63.06 5.736 -1495 -1911 2006 104,613 65.50 93.96 7.407 -627 -2538
2007 3 116,669 65.50 82.75 8.130 -113 -2651 2008 103,147 65.50 83.95 7.122 -677 -3,328 2009 107,675 65.50-68.404 41.24 6.638 -1,167 -4,495 2010 54,334 68.40 58.07 4.119 5 -3,022 -7,517 2011 80,287 68.40 93.32 5.838 -1,520 -9,037 2012 101,117 68.40 62.32 6.821 179 -8,858 2013 96,670 68.40 40.276 7.147 158 -8,700 2014 86,854 Note 7 Note 7 4.6688 -1,581 -10,281 2015 122,317 Note 7 Note 7 5.806 -429 -10,710 2016 99,875 Note 7 Note 7 1.650 -3,322 -14,033 2017 119,180 Note 7 Note 7 2.650 -2,106 -16,319 2018 117,492 Note 7 Note 7 7.016 1,319 -14,820 2019 111,392 Note 7 Note 7 5.723 489 -14,331
Note: 1. This is the year of generation. 2. The Fiscal year end for Irrican changed from March 31 to October 31, so this is only a 7-month fiscal year. Drops 4, 5, 6 came on line starting in 2004. 3. Net Income and Retained Earnings are taken from the year-end financial statements. 4. The contract price changed to 68.40/MWh on Aug. 1, 2009. 5. Gross Revenue includes $385,786 of retroactive generation revenue. 6. Based on Chin & Raymond for 2013, as no excess produced on Drops 4,5,6. 7. Contracts expired 2013 with electricity sold on the power pool starting in 2014. 8. Proceeds of interruption insurance at Chin plant were $0.431 million which made total Gross Revenue equal to $5.099 million.
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POLICY REMINDERS
1. The irrigation system of the District is designed to allow the land owner to use water at a rate of 8 U.S. gpm/acre shown on the assessment roll. Therefore, a land owner should design his irrigation system on that basis.
2. A change of water delivery point must first be approved by the Board and an agreement signed. 3. The canal banks are NOT to be sprinkled. (Pivots and other sprinkler equipment are not to encroach within
the 6 metre driving bank area.) Use of canal roadways is limited to light delivery vehicles and only when the roadway is dry. The cost of repairs to TID canals or driving banks as a result of damages from misuse will be charged to the offending party.
4. Irrigation pumps and other equipment are NOT to be on the canal banks. When they are, this prevents the
canal banks from being travelled by District staff and maintenance equipment. 5. There are to be NO water orders made on Sunday. Water ordering hours are 7:30 a.m.- 7:30 p.m.,
Monday to Friday and 7:30 a.m. – 11:30 a.m. on Saturday. See TID website for new policy explanation. 6. First water order requests will be received on the first day of advertised startup week or the day after
SMRID receives TID water orders, whichever is earlier, on a first-come first-served supply basis, after system flushing/filling. See TID website for new policy explanation.
7. Before you can increase the number of acres that you are irrigating, you must get approval from the District
for the additional acres, which may also require a land classification to be done. 8. Before erecting a building, installing a fence or utility lines, digging a pond, planting trees, etc. near any of
the District works (i.e. a canal, drain, pipeline, tile drain, etc.); please check with the District Engineer. 9. The District will not accept responsibility for damage to your irrigation pumping units or other pieces of
equipment which are left connected to District pipelines or left in the canals during the off season. 10. Pumping units should be securely attached to pipeline turnouts, with flex hose, when pumping directly
from them. 11. Individuals will be charged for damages which they cause to the irrigation works of the District. This
includes the cost of removal of silt, crop debris and other deposits. 12. Existing fences along District canals, drains, reservoirs, etc. are not to be removed without permission from
the District. If the District approves the removal of the fence and the fence was originally installed by the District, the materials are to be returned to the District.
13. Irrigation pumps and sprinkler equipment must be restarted as soon as possible after a power outage or
other interruption to prevent flooding and damage downstream. 14. No one is allowed to pump or otherwise introduce water into our canals, drains or other irrigation works
without first getting permission each time from the District.
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OPERATION and MAINTENANCE REPORT
Water Deliveries This year the spring startup and deliveries were near normal. We did not have the damage to our district that we had last year, and the repairs were mostly complete, allowing us to focus more on water delivery. Water was turned into the District on May 3rd and the last water delivery order was October 4th, but we continued to take water as SMRID was draining their systems. Our maximum rate of diversion for the season was 772 cfs, which occurred on July 17th. Total water use for the year was 102,900 acre-feet, which is down from the previous year. The total water storage in the St. Mary system was 488,027 acre-feet on October 31st and the water level in Chin Reservoir was brought up to 78% full at the end of the season. Annual Maintenance Report The District spent a lot of money and time before 2019 startup repairing sloughs to maintain good canal condition. Seasonal staff were hired to do maintenance work and to get the canals and pipelines ready to run water. During the summer, two tractor and mower units mowed the grass on the canal and driving banks while crews trimmed grass and weeds around structures and turnouts. The driving bank rehabilitation program continued in 2019 and the maintenance crew stepped up refurbishing turnouts and warning sign installation and replacement. With a larger rehabilitation program in 2019, the shop was well used, and our field crew was assigned to the Lateral 7 pipeline installation. We have two journeyman welders and others with shop experience in our ditchrider team that fabricated and painted many turnouts, overshot gates and other custom steel work using our state-of-the art facility. Maintenance staff serviced vehicles, cleared snow, repaired sloughs, installed safer walkways and did other essential work. The District is licensed to apply chemicals to our canals and driving banks but are regulated in terms of the type of chemicals we can use around water. Weeds can persist, and these regulations make it difficult to control. Our extensive weed spraying program had us spraying canal banks between May 23rd and September 17th. We used 776 liters of 2,4-D Amine and 86 liters of Oracle ®. We used 800 liters of RoundUp® on our laterals and some were given multiple treatments to battle the Wild Oats. The District continues to take a very active and aggressive approach against aquatic weeds and algae with multiple treatments. Aquatic weed treatments took place between May 5th and September 5th and 3,050 liters of Magnacide™ H was used. Most ditches were given three to four treatments this year, with some receiving six treatments. In the fall, after the water was turned off, the system was winterized, and maintenance work was completed. Details on specific maintenance projects and locations are available on the TID website
Equipment Purchases: Equipment Disposals: 7 – 2019 Ford F-150 Trucks $ 279,348 9 – used light trucks $ 49,982 Trailer with Hotsy pressure washer $ 18,500 Lenovo Server (2014) Kirchner Scraper $ 15,200 MS Surface Pro 2 (2013) GL 412 Laser $ 2,846 Seanix Laptop (2007) Cannon Photocopier $ 8,900 2019 Dell EMC Server $ 6,003 2019 Dell Notebook $ 3,049
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Respectfully submitted,
Barry Jensen, O & M Superintendent
Seepage Control Plan – 2019 to 2023 The following projects were included as a part of the 2019 to 2023 Subsequent Seepage Control Plan which was filed on May 20, 2019 after being approved by Irrigation Council.
1. East Horsefly Main Pipeline – E ½ 18-10-14-W4M • Approximately 7.5 acres surrounding TID’s Lateral 10 East Horsefly canal affected by seepage
(identified using aerial photography) • Proposed seepage control method involves installation of a buried PVC pipeline as a part of TID’s
East Horsefly Main Pipeline project, along with backfill and leveling of the first reach of the Lateral 10 East Horsefly canal through E ½ 18-10-14-W4M
• Estimated cost of proposed rehabilitation is $250,000 Note: The Lateral 15A Taber pipeline project included in TID’s 2016-2020 Subsequent Seepage Control Plan, which has not yet been completed, has been excluded from this plan due to an upcoming regional drainage project (Horsefly Regional Spillway) planned for construction in three phases during 2022-2024. Phase 2 of this project is to take place in the same area as the Lateral 15A Taber pipeline project. To prevent potential construction area conflicts TID is planning to complete this project as a part of, or immediately following completion or cancellation of, the Horsefly Regional Spillway project. Seepage out of the existing Lateral 15A Taber canal affects only non-irrigated pasture, so this change in timeline is unlikely to result in any crop loss claims against the District. The next Subsequent Seepage Control Plan will be filed in March 2022.
Type of Maintenance Amount Type of Maintenance Amount Canal/Drain Pipeline Repairs/Replaced - Cleaning 26 km - Air Vents 8 - Erosion/Sloughing Repair 30 km - Valves 21 Canal and Access Roads - Pipe Leaks 2 - Gravelling 72 km Replacement of Farm Turnouts 4 - Grading 90 km Replacement of Road Crossings 0 Canal Banks 125 km Repairs to Gates and Hoists 4 - Mowing 125 km Repairs to Pumps 3 - Spraying 265 km Repairs/Maintenance to Aquatic Weed Control 703 km - Hydrometric Stations -
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ENGINEER’S REPORT The TID Engineering department was involved in the design and implementation of numerous projects this year, some of which were funded through the Irrigation Rehabilitation Program (IRP), some through District Capital Reserves, some through government grant programs, and still others through private landowner contributions. In each of these projects, we strived to serve TID water users to the best of our abilities. IRP funding in 2019 was nearly the same as in 2018. The provincial government provided $763,890 and TID contributed $254,630 to fund approved infrastructure rehabilitation projects. The IRP projects undertaken by the TID during 2019, and those planned for the 2020/21 construction season are as follows:
Project No. Name and Description Status Cost to Date Approved
Cost 2348 Aerial Photography (2018)
- Purchase of up-to-date aerial imagery Completed $6,100.00 $10,000
2336 Automation, Gates and Controls (2018) - Fabrication, installation and automation of new
overshot gates for the East Horsefly Main Canal and Lateral 2 East Horsefly dividing gates
Continuing $203,594.68 $220,000
2339 East Horsefly Main Pipeline - Extension of the existing EHM Pipeline upstream to the
top of the Purple Springs hill - Construction/installation of a settling pond, screening
system and inlet structure at the upstream end of the pipeline extension
- Installation of a sub-lateral to serve the Purple Springs grazing lease
- Installation of new turnouts for adjacent landowners
Continuing $1,607,028.87 $3,750,000
2345 Automation, Gates and Controls (2019) - Fabrication, installation and automation of new
overshot gates for the East Horsefly Main Canal and Lateral 7 East Horsefly dividing gates
- Installation of SCADA hardware at the Taber Main Canal and East Horsefly Main Canal flow monitoring stations
Continuing $48,181.79 $230,000
TOTAL $1,864,905.34 $4,210,000
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The District-Funded Capital (DFC) projects undertaken by TID during 2019 were follows:
Project No. Name and Description Status 2019 Spending C102 Taber Lake Lateral Constructed Wetland1 Completed $13,066.68 C104 Big Bend Main Canal Water Quality Improvements Completed $132,744.50 C114 Reservoir Riparian Enhancement1 Completed $64,543.97 C117 Bountiful Coulee Pipeline Upgrades2 Completed $310,011.16 C118 Manhole Turnout Replacements (2019) Completed $143,765.37 C120 Check Plates (2019) Completed $2,725.11 C124 Aquatic Weed and Algae Control Structures (2019) Completed $44,873.57 C126 NW 12- and SW 14-9-17-W4M Main Canal Turnouts2 Completed $46,966.86 C100 Horsefly Drain Constructed Wetland
- TID contributions to MD of Taber West Township 8 Range 16 Drainage project
Continuing $6,972.27
C110 Lateral 3D Taber Headgate Replacement2 Continuing $8,487.65 C111 Magnacide H Storage Continuing $3,652.41 C113 EHMC Bank Raising2 Continuing $28,526.49 C123 Lateral 7 East Horsefly Pipeline Continuing $762,436.16 C127 CAP Bioreactor Pilot3
- TID/AAF joint research project to evaluate denitrification bioreactor carbon media for treating tile drain effluent
Continuing $49,752.90
C130 Manhole Turnout Rehabilitation (2020) Continuing $2,274.43 C131 Check Plates (2020) Continuing $9,217.21
Other Minor Projects Continuing $784.23 TOTAL $1,630,800.974
1 Major funding provided by the Watershed Resiliency and Restoration Program (WRRP, AEP) 2 Major funding by farmer contribution (associated with expansion project) 3 Major funding provided by the Canadian Agricultural Partnership (CAP) Program (AAF) 4 Total spending for 2019 excludes landowner contributions and grant funding The DFC projects that are planned for the 2020 fiscal year are as follows:
Project No. Name and Description Status Estimated Cost C129 Lateral 7 E.H. Concrete Canal Repairs Proposed $140,000 C134 Aquatic Weed and Algae Control Structures (2020) Proposed $25,000 C136 Driving Bank Rehabilitation (2020) Proposed $65,000
CAP EPP Project5 Proposed $100,000
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Project No. Name and Description Status Estimated Cost CAP Risk Mitigation Projects5
- Aquatic Weed Exclusion at Fincastle Reservoir Approach Channel, Bonette Lake Detention and Return Flow Recovery, SCADA and Canal/Reservoir Monitoring System, Asset Management and Critical Condition Assessment, Modular Standardized Weed Screen
Proposed $243,750
Graphical Information and Water Management System5 Proposed $200,000 Automation, Gates and Controls (2021) Proposed $200,000 Manhole Turnout Replacements (2021) Proposed $150,000 Other Minor Projects Proposed $50,000
5 Multi-year project – estimated cost is for completion of entire project Along with planning, design and implementation of IRP and DFC projects, the Engineering department was involved in numerous other tasks in 2019. We assisted the O&M department and individual landowners with various small projects, providing design and product selection advice as requested. We also worked with consultants to collect information and begin preparations for future IRP and DFC projects. We completed Alberta One Call locates for excavations around TID pipelines and administered TID’s Aquatic Invasive Species program, working with the Operations & Maintenance department to monitor physical infrastructure for invasive mussels and sending regular reports to Alberta Agriculture and Forestry. For the first time in a few years, there were no major staff changes in the Engineering department in 2019. My comfort level in the District Engineer position continues to increase with each additional year of experience, as does my knowledge of engineering practices and my familiarity with TID infrastructure. Jason Sheppard is settling into his role as Drafting Engineering Technologist and is now helping to develop drafting standards to improve the quality and consistency of TID computer-aided design (CAD) drawings. Dylan Fletcher continues to provide valuable support to TID Engineering, Administration, and Operations and Maintenance staff with his wealth of survey- and GIS-related knowledge and strong work ethic. 2019 was a busy year for the Engineering department. It was difficult and stressful at times, but I ultimately believe that the knowledge and experienced gained will pay back many times over in years to come. I’m excited to see how the things we learned in 2019 can be used to benefit TID water users in 2020 and into the future!
Respectfully submitted,
Tony Wikkerink, P. Eng. District Engineer
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TABER IRRIGATION DISTRICT
ANNUAL MEETING - MARCH 20, 2019 Minutes of the Taber Irrigation District Annual Meeting held at the Heritage Inn, Taber, Alberta on Wednesday, March 20, 2019 @ 1:30 p.m. In Attendance: From the Board of Directors From the Staff Kyle Gouw, Vice-Chairman Christopher Gallagher, District Manager Mike Wind Tony Wikkerink, District Engineer Don Johnson Brenda Pyrch, Recording Secretary Bruce Francis Absent Mike Wind, Chairman Barry Jensen, O & M Superintendent Representatives from Government Rebecca Fast - Irrigation Secretariat Anne-Marie Philipsen - Irrigation Council Derek Nalder - Alberta Agriculture & Forestry Ricardo Eisenberg - Alberta Agriculture & Forestry Others in Attendance Dan Bosters - Auditor KPMG Margo Redelback - AIPA Adam Gast - ATB Financial Ben Koersen - ATB Financial Kevin Whittmire - MPE Engineering Ltd. Terrence Lazarus - SMRID Alex Ostrop - SMRID Dale Viergutz - Wood Environmental & Infrastructure Gerry Roth - Wood Environmental & Infrastructure Harry Philipsen Irrigators in Attendance (not including the Board/Staff members) Blair Shaw Mark Ross Jerry Zeinstra Taylor Gouw Arjan Woordman Mark Miyanaga Jeremy Wind Ken Perl Michel Camps Greg Nakamura Brandon Veenstra Dan Lievaart Urs Waeckerlin Zorka Millo David Bekkering Eugene Bastura
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WELCOME At 1:35 p.m., Chairman for the AGM, Kyle Gouw, welcomed all those in attendance and acknowledged the presence of the various government representatives and other visitors. He mentioned that this is the 100th Annual General Meeting for the Taber Irrigation District. ADOPTION OF AGENDA Copies of the proposed agenda had been circulated prior to the commencement of the Annual Meeting. Chairman Kyle Gouw asked the irrigators if there were any additions or deletions to the proposed agenda. MOTION Mark Ross, seconded by Paul Turcato - that the Agenda be adopted as presented. Motion Carried UPDATE ON BOARD OF DIRECTORS ELECTIONS 2018 Chris Gallagher, Returning Officer, presented that we had one nomination for the division up for election and that Paul Turcato was acclaimed to the TID board in Division # 3 Taber East – Fincastle. RESOLUTIONS COMMITTEE Paul Turcato and Dan Lievaart were appointed to the Resolutions Committee by Kyle Gouw. APPROVAL OF THE MINUTES OF THE 2018 ANNUAL MEETING The 2018 Annual Report, containing the 2018 Annual Meeting minutes, was distributed at the meeting and is available on our website. It was brought to our attention that there was a mistake on the land location for the proposed Taber Big Bend Solar Project that was stated as NW, SE and SW 28-9-16 W4 and should be NW, SE and SW 28-10-16 W4. MOTION Jerry Zienstra, seconded by Arjan Woordman - that the minutes of the 2018 Annual Meeting be
approved as corrected. Motion Carried BUSINESS ARISING FROM THE 2018 ANNUAL MEETING MINUTES Tony Wikkerink presented information on work that has been done to resolve the issue that was presented last year with regard to nuisance spill from Lateral 18 Taber spill water check structure. The spill structure elevation is okay, but the Lateral 20 drop inlet capacity was overestimated. TID has lowered the drop inlet structure to reset the settling pond elevation and avoid the nuisance spill. Arjan said that the gabion wall at that site clogs up. The wall has been checked and we will handle it differently for the spring flush as that is what caused the problem. We understand better now that we need to keep the bypass open during the initial flush. We cleaned the walls (pressure wash/ compressed air) last fall to clear off the accumulated debris. This had been flagged as a maintenance item on all the gabion walls to check to make sure they are cleared of debris.
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Another item mentioned last year was the setting of term limits (number of consecutive terms) for the board. Chris presented the information that he gathered from other districts. Some districts have term limits, some have limits for certain positions on their boards and others, like us, have no term limits. We do have the opportunity for an election when a 3-year term expires for an existing director. If the ratepayers think a change is needed on the board, they can encourage people to be nominated for that position. For now, the TID board has decided to keep the existing policy and have provided information on the duties of board members and their responsibilities, that was sent with the notice of our Annual General Meeting. The information is also posted to our website in order to encourage people to be involved in the process. As farms get larger, it leaves a smaller pool of ratepayers who qualify to be elected to the board and it was felt that someone that the ratepayers feel is doing a good job representing their area should be able to remain as a director. Chris also gave an update on the Taber Big Bend Solar Project. Aura Power Renewables has negotiated an early termination agreement with the current grazing lease holder and is moving forward on their application for AUC and other approvals and for contracts for the sale of power from the site to the balancing pool. They may be able to move ahead with the project as early as November 2019. BOARD OF DIRECTORS’ AND MANAGER’S REPORT The Board of Directors’ Report was read from the annual report by Tony Machacek, as requested by Kyle Gouw in Mike Wind’s absence. Slides of the spring overland flooding were shown during the report. MOTION Tony Machacek, seconded by Michel Camps – that the Board of Directors’ Report be accepted as presented. Motion Carried The Manager’s Report was presented by Christopher Gallagher, District Manager. Chris gave a Power Point presentation that included highlights of the water situation, irrigation acres available, capital assets charges and rates. He reported that starting the year was a huge challenge due to the overland flooding and the damage that it caused. We were in very good shape as to water supply as we had record snow fall through the winter and into spring. The long dry summer presented some challenges that were met by TID staff. In the end, we had enough water to get to the end of the season and the rain in late September meant that we could shut down the system a little earlier than normal in October and save some of the water in our reservoirs to carry forward. He mentioned the Southern Tributaries Water Sharing Agreement that we are working on along with SMRID, RID and several municipalities. Chris provided the rationale for negotiating the terms and preparing the draft for the Forty Mile Pump Station Power Cost Sharing Agreement. We look forward to finalizing the agreement in 2019. He touched base on the reduction in IRP funding and how that impacts the districts. He thanked our partners for the collaboration that we receive and our staff for their hard work, and our effective board. He encouraged our water users to talk to their ditchrider, stop in at the office, or talk to your board representative so that we can answer your questions. MOTION Chris Gallagher, seconded by David Bekkering - that the Manager’s Report be accepted as
presented. Motion Carried
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The Irrican Report was presented by Christopher Gallagher. Power generation was high this year, and pricing was good so Irrican had a much better year than the previous one. Irrican’s major loans were paid out in 2018 and the remaining due to districts loans have been consolidated and will be amortized over the next 25 years (currently at prime plus 1%) to be paid back under fixed terms. The interest will be used as income for the district as usual and the principal will be put into the reserve to be used for capital projects. MOTION Chris Gallagher, seconded by Mark Ross - that the Irrican Report be accepted as presented. Motion Carried
OPERATIONS AND MAINTENANCE REPORT
The Operations and Maintenance Report was presented by Tony Wikkerink as Barry Jensen, District Superintendent, was not able to attend the meeting. Photos of maintenance projects completed in 2018 were shown during the report. Tony concentrated mostly on the repairs that had to be completed from the overland flooding and State of Local Emergency in order to get the district operational for 2018.
MOTION Tony Wikkerink, seconded by Blair Shaw - that the Operations and Maintenance Report be
accepted as presented. Motion Carried
Following his report Tony asked if there were any questions or concerns from those attendance, but no questions or concerns were brought forth. DISTRICT ENGINEER’S REPORT The District Engineer’s Report was presented by Tony Wikkerink, District Engineer. Tony presented an overview of the continuing and proposed IRP projects. Photos of progress on projects were shown. He also gave information on the many District Funded projects that the district has been working on in 2018. MOTION Tony Wikkerink, seconded by Mark Ross that the Engineer’s Report be accepted as presented. Motion Carried
AUDITOR’S FINANCIAL STATEMENT
The Audit was conducted by KPMG LLP, Chartered Accountants from Lethbridge, Alberta. The Financial Statements for the year ending December 31, 2018 were presented by Dan Bosters, Senior Manager, KPMG.
MOTION Dan Bosters, seconded by Greg Nakamura - that the 2018 Financial Statements for the year ending December 31, 2018 be accepted as presented.
Motion Carried
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RESOLUTIONS No resolutions were brought forward from the floor at this meeting.
NEW BUSINESS Water Situation for 2019
Chris provided an update on the current water supply situation. Reservoirs are currently at normal winter levels. The lower and mid-elevation snowpack is trending just below the median, while the upper elevations at Flattop are near the lower quartile. We currently have enough water to meet basic irrigation and other water use needs for the 2019 season but will set the initial April allocation conservatively. We want to make sure that we don’t “over promise”. If we get more snowpack in the mountains over the next month and some good spring precipitation, we should be able to increase the allocation. Updates will be available on the website. Update on TID Rates & Irrigation Acres
Chris presented the proposed rate of $20 per irrigation acre for 2019. He went through the history of the rate increases to get TID on track with rates covering expenses as well as the increased costs that are needed to rehabilitate several outlet structures to manage risk. The TID projects that rates will increase by $1.00 per year for irrigation acres moving forward after 2019 so long as we don’t have any emergency situations such as reduced IRP funding or a mussel infestation.
Canadian Agriculture Partnership – Irrigation Efficiency Program
Tony Wikkerink gave a presentation with information supplied by Brad Calder (AAF) on the current CAP program that is available. The link for the information is available on our website. The program provides partial funding for upgrades for high efficiency irrigation equipment. Prior approval is required and the details for the program as well as the application form are available through Alberta Agriculture and Forestry. Other
There was some further discussion about the Forty Mile Pump Station Power Cost Sharing agreement that we are working on. Chris explained that the agreement would foster better cooperation for how the reservoirs are managed and possibly give TID the option of having early water if Forty Mile Reservoir along with Chin Reservoir could be operated a bit differently. If TID and RID agree to pay to offset some of the pumping costs, we could use predictive modeling to manage the reservoir levels and Forty Mile Reservoir could be kept higher or lower depending on demand throughout the system. He also talked about the Solar project that is proposed for that site that would be an Irrican investment. It would offset the pumping costs and pay for the photovoltaic infrastructure that would be installed by Enmax and financed over a 15-year period. There is government funding for 35% of the costs on the project. It is a good way for the districts to cooperate with one another and get the benefits of some green initiatives.
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Michel Camps asked for clarification on pump station power costs and agreed that working together and sharing ideas was good.
Mark Ross asked about water quality improvements in his area. Chris provided an update on the Horsefly Regional Emergency Spillway project and the planned constructed wetlands for the inlets to Horsefly and Taber Reservoirs.
Blair Shaw asked if we were monitoring the quality of water returned to the river. Chris explained the new Irrigation District Water Quality tool that was developed by Derek Nalder (AAF) in collaboration with AIDA. See idwq.ca. All primary, secondary and return flow sites are included. CLOSE OF MEETING
Kyle Gouw thanked everyone for coming out to the Annual General Meeting and talked about his responsibilities on the board and how the board approaches some of the decisions that they make. He wanted a show of hands by the producers of those that wanted to be proactive vs reactive. The majority indicated that they want to be proactive. MOTION Mark Miyanaga - that this Annual Meeting of the Taber Irrigation District does now close.
Motion Carried @ 3:43 p.m. REFRESHMENTS PROVIDED BY ATB FINANCIAL – TABER
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KPMG LLP500 Lethbridge Centre Tower400-4th Avenue SouthLethbridge Alberta T1J 4E1CanadaTel (403) 380-5700Fax (403) 380-5760
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of Taber Irrigation District
OpinionWe have audited the financial statements of Taber Irrigation District (the "District"), whichcomprise:• the statement of financial position as at December 31, 2019• the statement of operations and changes in fund balances for the year then
ended• the statement of cash flows for the year then ended• and notes and schedule to the financial statements, including a summary of
significant accounting policies(Hereinafter referred to as the “financial statements'').In our opinion, the accompanying financial statements present fairly, in all materialrespects, the financial position of the District as at December 31, 2019 and its results ofoperations and changes in fund balances and its cash flows for the year then ended inaccordance with Canadian accounting standards for not-for-profit organizations.
Basis for OpinionWe conducted our audit in accordance with Canadian generally accepted auditingstandards. Our responsibilities under those standards are further described in the''Auditors' Responsibilities for the Audit of the Financial Statements'' section of ourauditors' report. We are independent of the District in accordance with the ethical requirements that arerelevant to our audit of the financial statements in Canada and we have fulfilled our otherethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
KPMG LLP, is a Canadian limited liability partnership and a member firm of the KPMG network of independentmember firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entityKPMG Canada provides services to KPMG LLP.
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Other InformationManagement is responsible for the other information. The other information comprises:• the information, other than the financial statements and the auditors’ report
thereon, included in the Annual Report. The Annual Report is expected to bemade available to us after the date of the auditors’ report.
Our opinion on the financial statements does not cover the other information and we donot and will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read theother information identified above when it becomes available and, in doing so, considerwhether the other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit and remain alert for indicators that the other informationappears to be materially misstated. When we read the Annual Report, if we conclude that there is a material misstatement ofthis other information, we are required to report the matter to those charged withgovernance.
Responsibilities of Management and Those Charged With Governancefor the Financial StatementsManagement is responsible for the preparation and fair presentation of the financialstatements in accordance with Canadian accounting standards for not-for-profitorganizations, and for such internal control as management determines is necessary toenable the preparation of financial statements that are free from material misstatement,whether due to fraud or error. In preparing the financial statements, management is responsible for assessing theDistrict's ability to continue as a going concern, disclosing, as applicable, matters relatedto going concern and using the going concern basis of accounting unless managementeither intends to liquidate the District or to cease operations, or has no realistic alternativebut to do so. Those charged with governance are responsible for overseeing the District's financialreporting process.
Auditors' Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement, whether due to fraud or error, and to issuean auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with Canadian generally accepted auditing standards will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected to influence the economic decisionsof users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards,we exercise professional judgment and maintain professional skepticism throughout theaudit.
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We also:• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to providea basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of the District's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concernbasis of accounting and, based on the audit evidence obtained, whether a materialuncertainty exists related to events or conditions that may cast significant doubt onthe District's ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditors' report to therelated disclosures in the financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors' report. However, future events orconditions may cause the District to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financialstatements, including the disclosures, and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation
• Communicate with those charged with governance regarding, among othermatters, the planned scope and timing of the audit and significant audit findings,including any significant deficiencies in internal control that we identify duringour audit.
Chartered Professional Accountants
Lethbridge, Canada
March 11, 2020
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TABER IRRIGATION DISTRICTStatement of Financial Position
December 31, 2019, with comparative information for 2018
Generaloperations
Irrigationworks 2019 2018
AssetsCurrent assets:
Cash (note 9) $ 3,929,143 $ 303,009 $ 4,232,152 $ 3,436,624Short-term investments (note 2) 2,020,970 - 2,020,970 5,288,536Accounts receivable (note 3) 67,189 1,018,520 1,085,709 124,373Accrued interest
receivable (note 4) 70,230 - 70,230 82,402Materials and supplies 327,036 - 327,036 254,868Prepaid expenses 21,512 - 21,512 16,775Due from irrigation works 467,653 - 467,653 1,216Note receivable, current
portion (note 6) 170,983 - 170,983 164,313 7,074,716 1,321,529 8,396,245 9,369,107
Long-term investments (note 5) 11,389,814 - 11,389,814 8,457,650Note receivable, long-term
portion (note 6) 7,874,312 - 7,874,312 8,045,295Capital assets (note 7) 906,336 38,098,326 39,004,662 37,282,406Due from general operations fund - 21,466,346 21,466,346 17,414,677
$ 27,245,178 $ 60,886,201 $ 88,131,379 $ 80,569,135
Liabilities and Fund BalancesCurrent liabilities:
Accounts payable and accruedliabilities $ 365,412 $ 497,669 $ 863,081 $ 97,237
Government agencies payable 2,154 - 2,154 135,990Employee benefits
obligation (note 8) 106,482 - 106,482 108,614Deposits on irrigation
acres (note 17) 1,900,000 - 1,900,000 4,509,400Due to general operations - 467,653 467,653 1,216
2,374,048 965,322 3,339,370 4,852,457Due to irrigation works fund 21,466,346 - 21,466,346 17,414,677
23,840,394 965,322 24,805,716 22,267,134
Fund balances (note 10) 3,404,784 59,920,879 63,325,663 58,302,001
Uncompleted contractcommitments (note 12)
$ 27,245,178 $ 60,886,201 $ 88,131,379 $ 80,569,135
See accompanying notes to financial statements.
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TABER IRRIGATION DISTRICTStatement of Operations and Changes in Fund Balances
Year ended December 31, 2019, with comparative information for 2018
Generaloperations
Irrigationworks 2019 2018
Revenue:Water earnings:
Irrigation rates (note 11) $ 1,819,800 $ - $ 1,819,800 $ 1,587,618Municipal/industrial water supply 334,366 - 334,366 328,696Rural and household 210,660 - 210,660 178,290Penalties 8,326 - 8,326 9,494Discounts (94,054) - (94,054) (81,008)
2,279,098 - 2,279,098 2,023,090
Interest and investmentincome (note 13) 880,943 - 880,943 861,940
Surface leases 27,953 - 27,953 25,240Grazing leases (net) 36,313 - 36,313 20,858Irrigation works fund
revenues (note 10) - 4,696,334 4,696,334 1,826,410Change in unrealized gain (loss)
on financial instruments 513,036 - 513,036 (341,660)Grant revenue 195,557 - 195,557 168,603Other income 54,020 - 54,020 27,563
3,986,920 4,696,334 8,683,254 4,612,044
General and administrative expenses:Operating expense (schedule) 1,558,705 - 1,558,705 2,249,905Interest on long-term debt - - - 8,103Amortization of irrigation works - 1,791,584 1,791,584 1,801,362Main Canal shared costs 280,421 - 280,421 197,596Forty Mile Reservoir pump
station costs 28,882 - 28,882 27,9761,868,008 1,791,584 3,659,592 4,284,942
Excess of revenue overexpenses 2,118,912 2,904,750 5,023,662 327,102
Inter-fund transfer provision forirrigation works - cost shared(note 10) (255,000) 255,000 - -
Fund surplus for the year 1,863,912 3,159,750 5,023,662 327,102
Fund balances, beginning of year 3,310,872 54,991,129 58,302,001 57,974,899Inter-fund transfer provision for
irrigation works - District (note 10) (1,770,000) 1,770,000 - -
Fund balances, end of year $ 3,404,784 $59,920,879 $63,325,663 $58,302,001
See accompanying notes to financial statements.
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TABER IRRIGATION DISTRICTStatement of Cash Flows
Year ended December 31, 2019, with comparative information for 2018
Generaloperations
Irrigationworks 2019 2018
Cash provided by (used in):Operating activities:
Excess of revenue over expenses $ 2,118,912 2,904,750 5,023,662 $ 327,102Items not involving cash:
Amortization 151,447 1,791,584 1,943,031 1,921,133Gain on disposal of equipment (911) - (911) (16,838)Change in unrealized (gain) loss on
financial instruments (513,036) - (513,036) 341,660Change in non-cash working capital balances:
Accounts receivable 57,184 (1,018,520) (961,336) (42,297)Materials and supplies (72,168) - (72,168) (25,244)Prepaid expenses (4,737) - (4,737) 12,974Accounts payable and accrued
liabilities 268,175 497,669 765,844 (6,957)Government agencies payable (133,836) - (133,836) 131,152Employee benefits obligation (2,132) - (2,132) 6,788Deferred revenue - - - (33,372)Deposits on water rights (2,609,400) - (2,609,400) 2,011,400
(740,502) 4,175,483 3,434,981 4,627,501Investing activities:
Accrued interest receivable 5,420 6,752 12,172 (45,826)Decrease (increase) in short-term
investments 2,681,518 700,000 3,381,518 (3,292,715)Decrease (increase) in long-term
investments (2,533,079) - (2,533,079) 168,387Notes receivable: Repayments 164,312 - 164,312 8,228,437 Advances - - - (8,209,607)Purchase of capital assets -
general operations (333,846) - (333,846) (156,102)Proceeds on disposal of capital assets -
general operations 49,982 - 49,982 40,000Additions to irrigation works - (3,380,512) (3,380,512) (1,015,600)
34,307 (2,673,760) (2,639,453) (4,283,026)Financing activities: Long-term debt:
Repayment to Alberta Capital FinanceAuthority - - - (277,686)
Interfund transfer:Provision for irrigation works (2,025,000) 2,025,000 - -Interfund transfers 3,585,232 (3,585,232) - -
1,560,232 (1,560,232) - -Increase (decrease) in cash and cash
equivalents 854,037 (58,509) 795,528 66,789Cash and cash
equivalents, beginning of year 3,075,106 361,518 3,436,624 3,369,835
Cash and cash equivalents, end of year $ 3,929,143 303,009 4,232,152 $3,436,624
See accompanying notes to financial statements.
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$ $
$ $
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TABER IRRIGATION DISTRICTNotes to Financial Statements
Year ended December 31, 2019
Nature of operations:
Taber Irrigation District (the "District") is responsible for the efficient and economical distribution ofwater for users of the District and operates as a not-for-profit organization under the authority of theIrrigation Districts Act, Chapter I-11, Revised Statutes of Alberta 2000. The District is exempt fromIncome Tax under section 149(1)(l) of the Income Tax Act.
1. Significant accounting policies:
The financial statements have been prepared in accordance with Canadian accountingstandards for not-for-profit organizations. The significant policies are detailed as follows:
(a) Fund accounting:
These financial statements have been prepared in accordance with the restricted fundmethod of accounting.
The General Operations Fund accounts for the District's administrative activities includingcapital assets purchases and disposals.
The Irrigation Works Fund accounts for capital receipts for new irrigation works includinglands and buildings and interest earnings arising from such monies. Costs incurred inconstructing new irrigation works and in replacing and rehabilitating existing structures areprovided for from the Fund. The Province of Alberta contributes 75% of expendituresapproved by the Irrigation Council, and the District contributes 25%.
(b) Revenue recognition:
Restricted contributions related to general operations are recognized as revenue of theGeneral Operations Fund in the year in which the related expenses are incurred. All otherrestricted contributions are recognized as revenue of the appropriate restricted fund.
Unrestricted contributions are recognized as revenue of the General Operations Fund inthe year received or receivable if the amount to be received can be reasonably estimatedand collection is reasonably assured.
All other revenue is recognized in the appropriate fund when earned.
(c) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and short-term deposits, which arehighly liquid with original maturities of less than three months from the date of acquisition.
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
1. Significant accounting policies (continued):
(d) Inventory:
Materials and supplies are valued at the lower of cost and replacement cost with costdetermined by the first-in, first-out method.
(e) Capital assets:
Capital assets are recorded at cost.
Equipment is amortized at fixed rates applied to diminishing balances as follows:
Asset Rate
Power equipment 15%Trucks 20%General equipment 10%Computer equipment 25%
Irrigation works and buildings are amortized on a straight-line basis over their estimatedaverage useful life of 40 years.
(f) Employee future benefits:
i) Pension:
The District participates in the Local Authorities Pension Plan (LAPP). This pensionplan is a multi-employer defined benefit pension plan that provides pensions for theDistrict's participating employees, based on years of service and earnings.
The District does not have sufficient plan information on the LAPP to follow thestandards for defined benefit accounting, and therefore follows the standards fordefined contribution accounting. Accordingly, pension expenses recorded for the LAPPis comprised of employer contributions to the plan that are required for its employeesduring the year, which are calculated based on actuarially pre-determined amounts thatare expected to provide the plan's future benefits.
ii) Vacation and overtime:
The District accrues for vested benefits and those estimated to be paid in the next fiscalyear.
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
1. Significant accounting policies (continued):
(g) Financial instruments:
Financial instruments are recorded at fair value on initial recognition. Freestandingderivative instruments that are not in a qualifying hedging relationship and equityinstruments that are quoted in an active market are subsequently measured at fair value.All other financial instruments are subsequently measured at cost or amortized cost,unless management has elected to carry the instruments at fair value. The District haselected to carry fixed income securities including bonds and similar financial instruments atfair value. Changes in fair value are recognized in the statement of operations andchanges in fund balances in the period incurred.
Transaction costs incurred on the acquisition of financial instruments measuredsubsequently at fair value are expensed as incurred. All other financial instruments areadjusted by transaction costs incurred on acquisition and financing costs, which areamortized using the straight-line method.
Financial assets are assessed for impairment on an annual basis at the end of the fiscalyear if there are indicators of impairment. If there is an indicator of impairment, the Districtdetermines if there is a significant adverse change in the expected amount or timing offuture cash flows from the financial asset. If there is a significant adverse change in theexpected cash flows, the carrying value of the financial asset is reduced to the highest ofthe present value of the expected cash flows, the amount that could be realized fromselling the financial asset or the amount the District expects to realize by exercising its rightto any collateral. If events and circumstances reverse in a future year, an impairment losswill be reversed to the extent of the improvement, not exceeding the initial carrying value.
(h) Use of estimates:
The preparation of the financial statements in conformity with Canadian accountingstandards for not-for-profit organizations requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reportedamounts of revenue and expenses during the year. Significant items subject to suchestimates and assumptions include the carrying value of capital assets and the cost ofinternally generated capital assets; investments; obligations related to employee futurebenefits; and the impairment of accounts receivable. Actual results could differ from thoseestimates.
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
2. Short-term investments:
2019 2018
General operations:Mutual funds, at fair value $ 2,020,970 $ 1,855,359Guaranteed investment certificates, at amortized cost - 2,733,177
2,020,970 4,588,536
Irrigation works:Guaranteed investment certificates, at amortized cost - 700,000
$ 2,020,970 $ 5,288,536
The guaranteed investment certificates matured between April 2019 and December 2019 withinterest rates of 2.20% to 2.65%.
3. Accounts receivable:
2019 2018
General operations:Water rates and charges $ 54,178 $ 75,549Other 13,011 48,824
67,189 124,373
Irrigation works:Contributions - Alberta Agriculture and Forestry 763,890 -Contributions - District General Operations 254,630 -
1,018,520 -
$ 1,085,709 $ 124,373
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
4. Accrued interest receivable:
2019 2018
Notes receivable from Irrican for loan from the District $ 66,556 $ 67,915Guaranteed investment certificates 3,674 7,735
70,230 75,650
Irrigation works - term deposits - 6,752
$ 70,230 $ 82,402
5. Long-term investments:
2019 2018
Mutual funds, at fair value $ 8,480,369 $ 5,845,000Fixed income securities, at fair value 2,699,420 2,612,625Guaranteed investment certificates, at amortized cost 210,000 -Alberta Capital Finance Authority, 1 Class B common
share, at cost 10 10Irrigation Canal Power Co-operative Ltd. (Irrican),15%
ownership, Class C1 common shares, at cost 15 15
$ 11,389,814 $ 8,457,650
The fixed income securities mature between June, 2021 and November, 2023 (2018 - betweenJune, 2021 and November, 2023) with interest ranging from 3.03% to 4.15% (2018 - 3.03% to4.15%). The guaranteed investment certificate matures in April, 2024, with an interest rate of2.65%.
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
6. Note receivable:
2019 2018
Irrican note receivable, repayable $573,045 per yearincluding interest at prime plus 1%,due November, 2023 $ 8,045,295 $ 8,209,608
Less current portion 170,983 164,313
$ 7,874,312 $ 8,045,295
The above note is secured by all present and after acquired property of Irrican and theassignment of Irrican's interest in the Small Power Producer's contracts.
The note receivable is being repaid at $573,045 per year, including interest, with 75% of theannual payment due on July 31 and 25% on October 31 each year.
Principal receivable over the next 4 years is as follows: 2020 - $170,983, 2021 - $179,641,2022 - $188,738, 2023 - $7,505,933.
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
7. Capital assets:
General operations:
2019 2018
CostAccumulatedamortization
Net bookvalue
Net bookvalue
Power equipment $ 880,752 $ 588,715 $ 292,037 $ 343,573Trucks 1,121,622 708,510 413,112 262,830General equipment 370,648 180,293 190,355 160,900Computer equipment 19,924 9,092 10,832 5,705
$ 2,392,946 $ 1,486,610 $ 906,336 $ 773,008
Irrigation works:
2019 2018
CostAccumulatedamortization
Net bookvalue
Net bookvalue
Irrigation works $ 77,514,028 $ 42,479,442 $ 35,034,586 $ 33,370,347Land 54,465 - 54,465 54,465Buildings 3,556,090 546,815 3,009,275 3,084,586
81,124,583 43,026,257 38,098,326 36,509,398
Total $ 83,517,529 $ 44,512,867 $ 39,004,662 $ 37,282,406
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
8. Employee benefits obligations:
2019 2018
Vacation and overtime $ 106,482 $ 108,614
The vacation and overtime liability is comprised of the vacation and overtime that theemployees are deferring to the next year.
9. Credit Facility:
The District has a credit facility with ATB Financial to help finance operations. In accordance with By-Law #477, the prevailing rate of interest is set by ATB Financial and is authorized to a maximum of $200,000. The actual interest rate floats at 0.25% below the bank prime interest rate and the amount outstanding as at December 31, 2019 was $nil (2018 - $nil). In addition, the District has a credit facility with ATB for Alberta Agri-Industry Business Card MasterCard for$10,000 with interest calculated at prime plus 1.00%. At December 31, 2019, ATB’s Prime Rate was 3.95% (2018 – 3.95%).
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
10. Fund balances:
Irrigation works fund:
The District has funds contributed by Alberta Agriculture and Forestry (“Alberta Agriculture”)(externally restricted) and by the District (internally restricted) for use in adding to and/orrehabilitating irrigation works:
District
Province ofAlberta (IRP)Cost-Sharing 2019 2018
Fund balance, beginning ofyear $ 17,414,677 $ 1,067,054 $ 18,481,731 $ 16,029,421
Add:Contributions received from
Alberta Agriculture - 763,890 763,890 764,343Interest earnings - 20,344 20,344 14,085Contributions for new
parcels and irrigation works 3,912,100 - 3,912,100 1,047,982Transfer from District to
Province of Alberta (IRP)Cost-Sharing (254,630) 254,630 - -
Irrigation works fund revenue 3,657,470 1,038,864 4,696,334 1,826,410Deduct:Additions to irrigations works:External goods and services:
Materials and supplies 719,186 879,853 1,599,039 412,348Contracted services:- Construction 359,989 474,408 834,397 206,328- Engineering 38,664 251,959 290,623 16,795
Internal goods and services:Labour (includingbenefits):- Construction 159,239 31,454 190,693 112,875- Engineering 156,240 89,631 245,871 144,249
Equipment pool charge out 126,260 2,936 129,196 82,221Other equipment charge out 57,520 19,470 76,990 30,031Manufacturing pool
charge out 13,703 - 13,703 10,753Total deductions 1,630,801 1,749,711 3,380,512 1,015,600Inter-fund transfers:Provision for irrigation works -Cost shared 255,000 - 255,000 241,500
Provision for irrigation works -District 1,770,000 - 1,770,000 1,400,000
2,025,000 - 2,025,000 1,641,500Fund balance, end of year $ 21,466,346 $ 356,207 $ 21,822,553 $ 18,481,731
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
10. Fund balances (continued):
During 2019, the District transferred $2,025,000 from the general operations fund to theirrigation works fund. Of the transfers, $255,000 were specifically allocated to cover thebudgeted transfer from the District to the IRP fund. The District budgets for these provisions tobe covered from reserves.
The contributions from Alberta Agriculture in the amount of $763,890 are included in accountsreceivable as at December 31, 2019. The funds were received February 21, 2020 at which timethe District transferred its share in the amount of $254,630 to the IRP account. At December 31,2019, the District portion is included in irrigation works accounts receivable and generaloperations accounts payable.
Fund balances consist of the following:
Generaloperations
Irrigationworks 2019 2018
Invested in capital assets $ 906,336 $ 38,098,326 $ 39,004,662 $ 37,282,406Irrigation works fund - 21,822,553 21,822,553 18,481,731General fund operating 2,498,448 - 2,498,448 2,537,864
$ 3,404,784 $ 59,920,879 $ 63,325,663 $ 58,302,001
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
11. Irrigation rates:
Irrigation rates consist of:
2019 2018
86,736 Irrigation acres at $20.00 per acre(2018 - 83,947 acres; $18.00 per acre) $ 1,734,720 $ 1,511,046
878 Minimum charge irrigation acres (60 parcels) at$600.00 per parcel (2018 - 912 acres (61 parcels;$540.00 per parcel)) 36,000 32,940
540 Terminable acres at $60.00 per acre (2018 - 590acres; $54.00 per acre) 32,400 31,860
83 Minimum charge terminable acres (13 parcels) at$600.00 per parcel (2018 - 83 acres (13 parcels; $540.00 per parcel)) 7,800 7,020
148 Annual acres at $60.00 per acre (2018 - 88 acres;$54.00 per acre) 8,880 4,752
88,385 acres (2018 - 85,620) $ 1,819,800 $ 1,587,618
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
12. Uncompleted contract commitments:
The District has commitments in the amount of $714,880 (2018 - $nil), in respect ofuncompleted work under contract.
13. Interest and investment income:
Included in interest and investment income are realized gains of $2,063,291 (2018 - losses of$5,166).
14. Board of Directors fees and expenses:
The Board of Directors of the Taber Irrigation District receive fees for their time spentassociated with attendance at meetings, and reimbursement for expenses incurred in attendingthose meetings, such as meals and mileage. For 2019, the per diem amount for meetings was$365 per meeting along with a flat monthly amount of $140. The board chairman receives anextra allowance (for the equivalent of four meetings annually) to cover for the additionalresponsibilities of the chair.
Also included in board of directors fees and expenses included in the Schedule of OperatingExpenses, is meals for hosted meetings and regular board meetings that are paid by theDistrict. The expenses per board member varies based on the availability of their time to attendmeetings and the additional expenses for meetings that require travel for longer periods of timesuch as conventions.
Director fees Expenses Total 2019
Mike Wind (Chair) 10,440 921 11,361Kyle Gouw (Vice Chair) 6,425 283 6,708Bruce Francis 6,425 75 6,500Don Johnson 19,565 2,657 22,222Paul Turcato 3,395 95 3,490Tony Machacek 5,140 15 5,155
51,390 4,046 55,436
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
15. Related party transactions:
i) Irrigation Canal Power Co-operative Ltd. (Irrican) guarantees and supplies electrical energyfor the use and benefit of all water users in the St. Mary River Irrigation District, RaymondIrrigation District and the District. The District owns 15% of Irrican. Irrican commencedoperations in May of 1994.
During the year the District charged Irrican administrative fees totaling $20,718 (2018 -$16,442) and interest on notes receivable totaling $407,373 (2018 - $432,065).
At the year end, amounts due from Irrican are as follows:
2019 2018
Accrued interest receivable $ 66,555 $ 67,915Notes receivable (note 6) 8,045,295 8,209,608
$ 8,111,850 $ 8,277,523
ii) St. Mary River Irrigation District Main Canal (Common Carrier Portion) conveys water to St.Mary River Irrigation District, Raymond Irrigation District and the District. The costs tooperate the Main Canal are shared 75%, 10% and 15% respectively. In addition, the threedistricts also contribute to a Reserve Fund for the Main Canal to cover any largeexpenditures over and above normal yearly operation and maintenance costs at the same75%, 10% and 15% ratio. The fund as at October 31, 2019 was $6,079,868 (2018 -$5,623,482).
During the year, the District charged the St. Mary River Irrigation District Main Canal accountadministrative fees totaling $2,014 (2018 - $5,019).
The District paid $28,882 to St. Mary River Irrigation District related to the Forty MileReservoir pump station cost sharing agreement. The District has agreed to cover theirportion of the power costs from 2018 to 2020 and the remainder is estimated to beapproximately $30,000 over the next year.
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
16. Local Authorities Pension Plan:
The District is required to make current service contributions to the Plan of 9.39% (2018 –10.39%) of pensionable earnings up to the year's maximum pensionable earnings under theCanada Pension Plan and 13.84% (2018 - 14.84%) on pensionable earnings above thisamount. Employees of the District are required to make current service contributions of 8.39%(2018 - 9.39%) of pensionable salary up to the year's maximum pensionable salary and 12.84%(2018 - 13.84%) on pensionable salary above this amount.
Total current service contributions by the District to the LAPP in 2019 were $104,530 (2018 -$120,329). Total current service contributions by the employees of the District to the LAPP in2019 were $94,722 (2018 - $109,992).
At December 31, 2018, the LAPP served about 265,813 (2017 – 259,714) people and 421(2017 – 420) employers and it disclosed an actuarial surplus of $3.47 billion (2018 – surplus of$4.84 billion).
17. Deposits on irrigation acres:
During 2018, the District received deposits on irrigation acres that have not yet been added tothe assessment roll. Total deposits that remain outstanding at December 31, 2019 were$1,900,000 (2018 - $4,509,400).
The revenue will be recognized as contributions for new parcels and irrigation works in theIrrigation works fund when the acres have been added and all conditions have been met.
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TABER IRRIGATION DISTRICTNotes to Financial Statements (continued)
Year ended December 31, 2019
18. Financial risks and concentration of risk:
The District is exposed to various risks through its financial instruments. The risks at December31, 2019 are as follows: credit risk, interest rate risk, liquidity risk and currency risk.
The District has a specific Investment Policy that details the asset quality and proportion of fixedincome and equity securities in which investments are made.
The District does not use derivative financial instruments to manage its risks.
(a) Credit risk:
Credit risk refers to the risk that a counterparty may default on its contractual obligationsresulting in a financial loss.
The District does not have significant exposure to risk from any individual customer. TheIrrigation Districts Act provides a mechanism to recover non-payment of capitalconstruction contributions, irrigation rates, surcharges and water rights. The amountreceivable from Alberta Agriculture and Forestry as at December 31, 2019, in the amountof $763,890, was received subsequent to year end. There has been no change to the riskexposure from 2018.
(b) Interest rate risk:
The District is exposed to interest rate risk on its fixed interest rate financial investments inthat changes in market interest rates will cause fluctuations in the fair value or future cashflows of its short-term deposits and long-term bonds. There has been no change to the riskexposure from 2018.
(c) Liquidity risk:
Liquidity risk is the risk that the District will be unable to fulfill its obligations on a timelybasis or at a reasonable cost. The District manages its liquidity risk by monitoring itsoperating requirements. The District prepares a budget to ensure it has sufficient funds tofulfill its obligations. There has been no change to the risk exposure from 2018.
(d) Other financial risks:
Unless otherwise noted, Management believes that the District is not exposed to significantcurrency risk or market risk.
19. Approval of financial statements:
These financial statements were approved by the Board and Management.
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TAB
ER IR
RIG
ATI
ON
DIS
TRIC
TSc
hedu
le o
f Ope
ratin
g Ex
pens
es
Year
end
ed D
ecem
ber 3
1, 2
019,
with
com
para
tive
info
rmat
ion
for 2
018
Equi
pmen
tpo
ol
Mai
nten
ance
of ir
rigat
ion
wor
ksW
ater
Del
iver
y
Engi
neer
ing
and
cons
truct
ion
Adm
inis
tratio
nan
dge
nera
lM
anuf
actu
ring
Tota
l 201
9To
tal 2
018
Sala
ries
and
wag
es$
80,7
48$
466,
173
$32
1,96
3$
246,
823
$34
6,00
0$
29,9
87$
1,49
1,69
4$
1,39
9,27
8Em
ploy
ee b
enef
its13
,140
81,2
0358
,603
42,5
7262
,282
4,99
326
2,79
326
5,02
5Eq
uipm
ent e
xpen
se32
,742
29,5
3833
,332
5,50
12,
297
495
103,
905
129,
096
Vege
tatio
n, w
eed
and
pest
con
trol
-14
,140
63,6
50-
--
77,7
9010
2,36
7Bo
ard
of D
irect
ors
fees
/exp
ense
s-
--
-60
,103
-60
,103
70,3
09M
ater
ials
and
sup
plie
s1,
865
48,8
174,
268
2,52
823
,621
18,0
4799
,146
149,
386
Insu
ranc
e8,
398
5,86
41,
680
2,02
42,
404
3,38
823
,758
36,3
60Ad
verti
sing
, pro
mot
ion
and
publ
ic re
latio
ns-
827
6610
326
,908
-27
,904
26,2
91Bu
ildin
gs, g
roun
ds (i
nclu
ding
util
ities
)5,
517
8,59
5-
-8,
137
9,29
631
,545
24,8
50As
soci
atio
n fe
es a
nd d
ues
--
-1,
491
36,5
30-
38,0
2138
,128
Con
tract
ed s
ervi
ces
(reco
very
)-
94,3
50-
(119
,607
)8,
263
-(1
6,99
4)34
4,23
2Pr
ofes
sion
al fe
es-
--
-14
,405
-14
,405
16,8
00Te
leph
one
737
2,88
63,
408
4,35
33,
263
384
15,0
3113
,564
Pum
ps a
nd c
ontro
l stru
ctur
es (i
nclu
ding
util
ities
)-
12,8
253,
076
--
-15
,901
24,3
29St
aff t
rain
ing
and
conf
eren
ce50
55,
731
6,60
53,
679
19,7
58-
36,2
7815
,285
Post
age
--
-1,
500
1,57
7-
3,07
73,
066
Land
title
--
--
1,22
0-
1,22
01,
147
Mis
cella
neou
s-
--
-2,
073
-2,
073
4,24
2G
ain
on d
ispo
sal o
f equ
ipm
ent
-(9
11)
--
--
(911
)(1
6,83
8)Am
ortiz
atio
n of
equ
ipm
ent
67,0
3829
,684
39,9
079,
548
2,76
62,
504
151,
447
119,
771
Rec
over
ies:
Labo
ur a
nd o
verh
ead
(20,
795)
(67,
804)
(163
,353
)(1
91,8
21)
(112
,166
)-
(555
,939
)(3
32,9
97)
Equi
pmen
t poo
l cha
rge
out
(172
,790
)45
,893
7612
7-
398
(126
,296
)(7
8,12
5)R
ecov
erie
s fro
m e
quip
men
t-
(18,
757)
(4,9
31)
(46,
802)
(331
)-
(70,
821)
(54,
368)
Man
ufac
turin
g po
ol c
harg
e ou
t-
--
--
(1,0
17)
(1,0
17)
(2,6
28)
Com
mer
cial
act
iviti
es-
--
-(2
2,73
2)-
(22,
732)
(21,
461)
Rec
over
ies
from
cus
tom
wor
k(3
2,61
9)(3
1,43
9)-
(52,
700)
(2,8
00)
16,8
82(1
02,6
76)
(27,
204)
Tota
l 201
9$
(15,
514)
$72
7,61
5$
368,
350
$(9
0,68
1)$
483,
578
$85
,357
$1,
558,
705
Tota
l 201
8$
37,1
65$
991,
990
$40
8,36
9$
275,
528
$48
9,31
4$
47,5
39$
2,24
9,90
5
47
46
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NOTES
47
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Thank you to our Retirees:
Left: Tony Machacek served on the Taber Irrigation Board for 18 years, 7 of those years as Chairman. Right: Alan Anderson worked for 28 years as a ditchrider in the Cranford – Barnwell area. Richard Oliver replaces Alan in Area #1.
We wish you both well in your retirement.
Mr. Irrigation
Keith Francis 1929-2019
Keith served on the TID Board of Directors for 46 years, beginning in 1969. During his time with the TID he was the Board Chair for 36 years. Keith was also Chair of the Main Canal Advisory Committee (29 years), Vice-Chair of Irrican (20 years), Chair of AIPA (10 years), Member of the Oldman Watershed Council (11 years) and Oldman River Basin Water Quality Initiative (7 years).
~ 2019 BOARD AND MANAGEMENT ~
Paul Turcato (far right) joined the TID Board of Directors in March. Paul represents the irrigators in the Taber East – Fincastle electoral division.
Welcome Paul!
John Beers joined us in the spring, replacing Richard Oliver in Area #5.
John and his wife have lived and worked in Taber most of their adult lives and raised their family here. Welcome to TID John!
Thank you to our Retirees:
Left: Tony Machacek served on the Taber Irrigation Board for 18 years, 7 of those years as Chairman. Right: Alan Anderson worked for 28 years as a ditchrider in the Cranford – Barnwell area. Richard Oliver replaces Alan in Area #1.
We wish you both well in your retirement.
Mr. Irrigation
Keith Francis 1929-2019
Keith served on the TID Board of Directors for 46 years, beginning in 1969. During his time with the TID he was the Board Chair for 36 years. Keith was also Chair of the Main Canal Advisory Committee (29 years), Vice-Chair of Irrican (20 years), Chair of AIPA (10 years), Member of the Oldman Watershed Council (11 years) and Oldman River Basin Water Quality Initiative (7 years).
~ 2019 BOARD AND MANAGEMENT ~
Paul Turcato (far right) joined the TID Board of Directors in March. Paul represents the irrigators in the Taber East – Fincastle electoral division.
Welcome Paul!
John Beers joined us in the spring, replacing Richard Oliver in Area #5.
John and his wife have lived and worked in Taber most of their adult lives and raised their family here. Welcome to TID John!
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EHM Pipeline Overflow Structure
Irrican Forty Mile Photovoltaic Solar Array
Bountiful Coulee Pipeline Upgrades
CAP Bioreactor Pilot
Lateral 18/20 Taber Pond Deflector Installation
Lateral 7 EH Pipeline Highway 3 Crossing
Lateral 8 Gabion Wall Construction
EHM Pipeline Overflow Structure
Irrican Forty Mile Photovoltaic Solar Array
Bountiful Coulee Pipeline Upgrades
CAP Bioreactor Pilot
Lateral 18/20 Taber Pond Deflector Installation
Lateral 7 EH Pipeline Highway 3 Crossing
Lateral 8 Gabion Wall Construction