Executive Summary
The 2024 audited financial statements for Clearwater County contain limited but significant references to the broadband project. The primary reference appears in Note 12 (Restricted Surplus), which reveals a $20.7 million restricted surplus specifically designated for broadband—representing a 8,500% increase from the prior year. While the statements do not separately break out broadband operating expenses or capital expenditures, the funding accumulation indicates major grant acquisition and project capitalization in 2024.
Direct References to "Broadband Project" in 2024 Audited Financial Statements
Note 12: Restricted Surplus (Primary Reference)
The most explicit mention appears in the Restricted Surplus schedule:
| Category | 2024 Balance | 2023 Balance | Year-over-Year Change |
|---|---|---|---|
| Broadband | $20,727,140 | $240,822 | +$20,486,318 |
This represents the largest single restricted surplus category and the most dramatic year-over-year growth among all restricted funds.clearwatercounty
Absence in Operating Statements
No separate line item for broadband appears in:
Consolidated Statement of Operations (expenses aggregated by function)
Schedule 4: Segmented Information (expenses categorized by service area)
Schedule 5: 2023 Segmented Information (comparative data)
This indicates broadband costs were either:
Capitalized as tangible assets (not expensed)
Included within broader categories like "Transportation Services" or "General Government"
Not yet material enough to require separate disclosure
Financial Outcomes and Analysis
Funding Accumulation
The $20.7 million broadband reserve suggests:
Grant acquisition success: The county secured substantial external funding (likely federal/provincial broadband grants announced in June 2024)
Matching funds: The county appears to be accumulating its 25% cost-share requirement for projects
Phased deployment: Funds restricted for future capital deployment
Capital Investment Context
Tangible Capital Assets (Note 9) show:
Total cost: $890.2 million (2024) vs $871.9 million (2023)
Additions: $28.9 million in new assets
Construction in progress: $46.3 million (2024) vs $34.2 million (2023)
While not explicitly attributed, broadband infrastructure likely contributes to:
Engineered structures ($684.6 million total cost)
Construction in progress balances
Government Transfers
Schedule 3 shows $8.99 million in capital transfers (provincial and local governments), which may include broadband grants, though not specifically identified.clearwatercounty
Context from Supplementary Sources
Grant Funding Reality
External sources confirm the financial statement implications:
June 2024: County announced five grants covering 75% of project costs from federal Universal Broadband Fund and Alberta governmentcbc+1
Total investment: $153 million federal-provincial commitment for the region, with Clearwater County receiving significant allocationrdnewsnow
2025 budget: $43.7 million allocated for broadband, with 66% grant recovery expectedclearwatercounty
Project Scope
The broadband initiative aims to:
Connect nearly 2,000 homes with fibre-to-the-home infrastructurecbc
Implement open-access network model enabling multiple ISPsbroadbandbreakfast
Support economic development, telehealth, and educationcbc
Financial Reporting Limitations
Lack of Specificity
The audited statements do not provide:
Detailed breakdown of broadband capital expenditures
Grant source identification within government transfers
Project-specific depreciation or amortization
Operating cost impacts (if any)
Accounting Treatment
The restricted surplus approach suggests:
Funds held for future capital deployment
Costs will be capitalized as tangible assets when incurred
Depreciation will be recognized over asset useful lives (likely 10-50 years per Note 1)
No immediate impact on operating surplus
Key Financial Outcomes Summary
| Outcome | 2024 Result | Implication |
|---|---|---|
| Broadband Reserve Growth | $20.5M increase | Major grant success; project funded |
| Overall County Surplus | $4.42M | No material broadband operating impact |
| Net Financial Assets | $95.9M | Strong liquidity position maintained |
| Cash Position | $55.7M | Adequate funds for cost-share requirements |
Conclusion
The 2024 audited financial statements confirm Clearwater County's broadband project achieved significant financial momentum, with $20.7 million in restricted funding representing the county's cost-share for a much larger federal-provincial initiative. While the statements provide minimal operational detail, the funding accumulation signals project readiness and strong intergovernmental partnership. The absence of material expenses suggests the project remains in pre-deployment or early construction phase, with full financial impact to emerge in 2025-2026 as capital expenditures accelerate and assets are placed into service.
Bottom Line: The broadband project is financially well-positioned but not yet materially impacting the county's operating results, consistent with a major infrastructure initiative in its early capitalization phase.
- https://clearwatercounty.ca/Home/DownloadDocument?docId=6ed85dfe-860d-4bdb-808d-13c5c6a7669e
- https://www.cbc.ca/news/canada/edmonton/federal-provincial-rural-broadband-expansion-rolling-out-slowly-in-alberta-1.7317901
- https://rdnewsnow.com/2024/06/17/feds-province-announce-high-speed-internet-investment-in-clearwater-county-region/
- https://www.clearwatercounty.ca/broadband
- https://broadbandbreakfast.com/empowering-rural-alberta-with-an-open-access-ftth-network/
- https://www.clearwatercounty.ca/Home/DownloadDocument?docId=b78598a2-45a5-4f89-98c4-1e42d96f6630
- https://www.clearwatercounty.ca/p/financial-services
- https://www.clearwatercounty.ca/p/broadband-background
- https://www.canada.ca/en/innovation-science-economic-development/news/2024/06/backgrounder-governments-of-canada-and-alberta-to-bring-high-speed-internet-access-to-communities-across-the-province.html
- https://www.clearwatercounty.ca/p/budget
- https://www.clearwatercounty.ca/p/fibre-to-the-home-1
- https://www.arcadis.com/en-ca/news/global/2024/7/woven-selected-to-design-broadband-network
- http://www.municipalaffairs.alberta.ca/mc_financial_tax_bylaws
- https://www.clearwatercounty.ca/p/broadband-business-plan
- https://www.clearwatercounty.ca/p/corporate-services
- https://clearwatercounty.ca/Home/DownloadDocument?docId=ab4a5173-85a3-4658-8d3a-b8a8c6d7cc61
- https://945rewindradio.ca/2025/01/15/clearwater-county-approves-new-2025-budget-to-reflect-caroline-amalgamation/
- https://www.clearwatercounty.ca/Home/DownloadDocument?docId=d5087a98-12b0-493c-a213-3bea97f7d15b
- https://www.clearwatercounty.ca/Home/DownloadDocument?docId=794cb8a8-4976-4508-a87f-bbd24445f474
- https://search.open.canada.ca/grants/record/ic,033-2023-2024-Q4-819250,current
- https://www.clearwatercounty.ca/Home/DownloadDocument?docId=68a34519-e305-4f26-b9f8-bdfd29463db0
- https://market.cwcbb.ca/cwcbb/Show/About
- https://www.ourcommons.ca/Content/Committee/421/INDU/Brief/BR9184968/br-external/ClearwaterCountyCouncil-e.pdf
- https://www.clearwatercounty.ca/Home/DownloadDocument?docId=2c5f67a1-bb37-4e98-81b4-5ab60c8c58db
- https://www.clearwatercounty.ca/Home/DownloadDocument?docId=86f4956a-6a38-4c99-bc75-8411ae8d53e3
- https://www.clearwatercounty.ca/p/municipal-grants
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